A Study on Financial Performance Using Ratio Analysis at Emami Ltd free essay sample

The examination is made to assess the budgetary position, the operational outcomes just as money related advancement of a business concern. This investigation clarifies manners by which proportion examination can be of help with since quite a while ago rang arranging, planning and resource the executives to fortify monetary execution and help dodge budgetary challenges. The examination not just tosses on the money related situation of a firm yet additionally fills in as a venturing stone to medicinal measures for Emami Limited. This task assists with distinguishing and give proposal the zone of more fragile situation of business exchange in â€Å"EMAMI LTD†. Rundown OF TABLES Table NoName of TablesPage No. 5. 1Current Ratio27 5. 2Quick proportion 29 5. 3Cash ratio31 5. 4Average Collection Period34 5. 5Inventory Turnover Ratio35 5. 6Working Capital Turnover Ratio37 5. 7Fixed Assets Turnover Ratio39 5. 8Proprietary Ratio42 5. 9Debt to Equity Ratio43 5. 10Interest Coverage Ratio45 5. 11Gross Profit Ratio48 5. 12Net Profit Ratio49 5. 13Return on Investment 51 5. 14Return on Equity53 5. 15Return on Total Assets55 5. 16Comparative Balance Sheet as on 31st March 2001†200258 5. 17Comparative Balance Sheet as on 31st March 2002†200360 5. 18Comparative Balance Sheet as on 31st March 2003†200462 5. 9Comparative Balance Sheet as on 31st March 2004†200564 5. 20Comparative Balance Sheet as on 31st March 2005†200666 LIST OF CHARTS Chart No. Name of ChartsPage No. 5. 1Current Ratio28 5. 2Quick proportion 30 5. 3Cash ratio32 5. 4Average Collection Period34 5. 5Inventory Turnover Ratio36 5. 6Working Capital Turnover Ratio38 5. 7Fixed Assets Turnover Ratio40 5. 8Proprietary Ratio42 5. 9Debt to Equity Ratio44 5. 10Interest Coverage Ratio46 5. 11Gross Profit Ratio48 5. 12Net Profit Ratio50 5. 13Return on Investment 52 5. 14Return on Equity54 5. 15Return on Total Assets56 CHAPTER I Presentation 1. 1 COMPANY PROFILE 1. 1. 1 HISTORY OF THE COMPANY: Emami, which began as a beautifiers producing organization in the year 1974, progressing with expanded energy has ventured into Emami Group of Companies of today. Despite the fact that beauty care products and toiletries keep on being the central purpose territory, different organizations in the Emami Group are performing similarly splendidly. From human services foundation to medications, from land to retailing and, from paper to composing instruments, Hospital, Emami is making one example of overcoming adversity after another. 1. 1. 2 Vision and Mission : Vision An organization, which with the assistance of nature, takes into account the consumers’ needs and their internal yearnings for dreams of better life, in the fields of individual and human services, both in India and all through the world. Crucial hone buyer bits of knowledge to comprehend and address their issues with esteem included separated items which are protected, compelling quick. †¢To incorporate our vendors, wholesalers, retailers and providers into the Emami family, in this manner reinforcing their ties with the organization. †¢To enlist, create and propel the best gifts in the nation and give them a situation which is requesting and testing. To fortify and cultivate in the workers, forceful emotive sentiments of unity with the organization. †¢ To maintain the principals of corporate administration and move towards decentralization to produce long haul most extreme returns for all stake proprietors. †¢To contribute entire heartedly towards nature and society and to rise as a model corporate resident. 1. 1. 3 Values: Respect for individuals: We treat people with pride and regard. We keep on being straightforward, open and moral in the entirety of our connections with vendors, wholesalers, retailers, providers, investors, clients and with one another. Buyers enchant: We augmenting that our business can succeed just on the off chance that we can make and keep clients. We make items that offer an incentive for cash, which are separated and convey sheltered, successful and quick arrangements. Trustworthiness: People at each level are relied upon to stick to the best expectations of business morals. Anything less is inadmissible. Our moral direct rises above past approaches. It is imbued in our corporate custom that is moved starting with one age of workers then onto the next. We consent to material government laws and guidelines in the topographies where we are available. Quality: We are focused on greatness in all that we do. Our philosophy: There is constantly a superior way-We should think inventively, ceaselessly advance and seek after new plans to accomplish extraordinary answers for normal issues. Cooperation: Teamwork is the foundation of our business that conveys an incentive to our clients. We cooperate across titles, work duties and authoritative structure to share information and aptitude. The correct condition: It is our duty to make a situation that assists workers with understanding their maximum capacity. Initiative: We perceive that we can be a main organization through dynamic designation and by making pioneers at each degree of the association. Network advancement: We keep on adding to the networks in which we work and address social issues dependably. Our items are sheltered to make and use. We preserve common assets and keep on putting resources into a superior situation. Straightforwardness and investor esteem: We are resolved to be driven by our still, small voice and administrative norms, to convey an incentive to our investors, similar with our administration and money related quality. Governing body The proficient working of this rumored organization rests with the accompanying characters. Shri R S Agarwal, Chairman Shri R S Goenka, Director Shri Sushil Kr. Goenka, Managing Director Shri A V Agarwal, Director Shri Mohan Goenka, Director Shri H V Agarwal, Director Shri Viren J Shah, Director Shri K Khemka, Director Shri S N Jalan, Director Shri Vaidya S Chaturvedi, Director Shri K N Memani, Director Shri S K Todi, Director Management group †¢Smt. P. Sureka, Brand Director †¢Shri Manish Goenka, Brand Director †¢Shri Prasant Goenka, Brand Director †¢Shri Dhiraj Agarwal, Media Director †¢Shri Hari Gupta, President †Sales Shri Ashok Dasgupta, President †Operation †¢Shri R. D. Daga, Chief of Legal Affairs †¢Shri R. K. Surana, Sr. V. P. †Purchase Development †¢Shri N. H. Bhansali, Sr. V. P. †Finance †¢Shri S. Rajagopalan, Sr. V. P. †Production †¢Shri R. C. Gattani †Sr. V. P. †Projects Development †¢Shri D. Poddar, V. P. †Co-appointment †¢Shri A. B. Mukherjee, V. P. †Logistics †¢Shri A. Ghose, V. P. †Ayurvedic Division †¢Shri A. K. Rajput, V. P. â€Operations †¢Shri S. Grover, V. P. †Rural Marketing †¢Shri S. K. Mandal, G. M. †Systems †¢Shri Vimal Kr. Pande, G. M. †Sales †¢Shri P. N. Balakrishnan, G. M. â€Technical †¢Shri A. K. Joshi, Company Secretary †¢Shri H. K. Goenka, G. M. †Works †¢Dr. Neena Sharma, G. M. †Ayurveda (RD) †¢Shri Raj Kr. Gupta, G. M. †Purchase †¢Shri T. R. Rajan, G. M. †Production †¢Ms. Ratna Sinha †Head HR The most captivating reality about the group is that however singular individual from the group capacities autonomously and expertly in their own regions however they are intently sew by an obligation of individual inclination. All the individuals from the Emami group cheerfully exist together as though relatives. 1. 1. 4 Profile of the Organization: Emami Limited is in the matter of assembling individual, magnificence and social insurance items. The organization fabricates natural and Ayurvedic items using current logical research facility rehearses. This mix empowers the organization to fabricate items that are mellow, sheltered and viable. The companys item container involves more than 20 items, the major being Boroplus Antiseptic Cream, Navratna Oil, Boroplus Prickly Heat Powder, Sona Chandi Chyawanprash and Amritprash, Mentho Plus Pain Balm, Fast Relief, Golden Beauty Talc, Madhuri Range of Products and others. The items are sold over all states in India and in nations like Nepal, Sri Lanka, the Gulf nations, Europe, Africa and the Middle East, among others. . 1. 5 Manufacturing: Emami’s items are made in Kolkata, Puducherry, Guwahati and Mumbai. The organization initiated activities at its completely robotized producing unit in Amingaon, Guwahati in 2003-04. 1. 1. 6 Network: The companys scattered assembling offices are supplemented with a solid item throughput, encouraged by a hearty conveyance system of more th an 2100 direct wholesalers and 3. 9 lakhs retail outlets. So as to venture its items more profound into the nation, direct selling has been reached out to rustic towns. Therefore, rustic deals expanded significantly in 2003-04 contrasted with the earlier year. Emami is headquartered in Kolkata. The companys branch workplaces are situated across 27 urban communities in India. 1. 1. 7 Promoters: Emami is advanced by Shri R. S. Agarwal and Shri R. S. Goenka, Kolkata based industrialists. Emami’s shares are recorded on the Calcutta Stock Exchange, Bombay Stock Exchange and National Stock Exchange. 1. 1. 8 IT BACKBONE INTEGRATED INFORMATION TECHNOLOGY A productive data innovation organize is vital for a dynamic FMCG organization where the market requests change quicker than maybe in some other industry. At Emami, the joining of data innovation comes to pass consistently. This guarantees the organization reacts to changing commercial center real factors quicker than its rivals and that its items arrive at retail retires exactly when they are required. Thusly, this upgrades brand unwaveringness and holds clients. An effective usage of the ERP in the workplaces, production lines and stations expanded the company’s by and large proficiency. It empowered single-point information passage and multi-point data