A.gayathridevi 11 a Study on Financial Performance Using Ratio Analysis at Emami Ltd

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    A STUDY ON FINANCIAL PERFORMANCE USING

    RATIO ANALYSIS AT EMAMI LTD

    SUMMER PROJECT REPORT

    Submitted by

    A.GAYATHRIDEVIREGISTER NO: !"#$"%%

    U&de' t(e )uid*&+e ,-

    M'. R. HEMALATHA/ M.0.A./

    F*+u1ty ,- m*&*)eme&t tudie

    In partial fulfilment for the award of the degree

    of

    MASTER OF 0USINESS ADMINISTRATION

    DEPARTMENT OF MANAGEMENT STUDIES

    SRI MANA2ULA VINAYAGAR ENGINEERING

    COLLEGE

    1

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    PONDICHERRY UNIVERSITY

    PUDUCHERRY/ INDIA

    SEPTEM0ER 33!

    SRI MANA2ULA VINAYAGAR ENGINEERING

    COLLEGEPONDICHERRY UNIVERSITY

    DEPARTMENT OF MANAGEMENT STUDIES

    0ONAFIDE CERTIFICATE

    This to certify that the project work entitled A STUDY

    ON FINANCIAL PERFORMANCE USING RATIO

    ANALYSIS AT EMAMI LTD4is a bonafide work done by

    A.GAYATHRIDEVI 5REGISTER NO: !"#$"%%6 in partial

    fulfilment of the requirement for the award of Master of

    Business Administration by Pondicherry Uniersity durin! the

    academic year "##$%"##&'

    "

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    GUIDE HEAD OF

    THE DEPARTMENT

    Vi7*8V,+e E9*mi&*ti,& (e1d O&(((((((((((((((

    ETERNAL EAMINER

    CertificateThis is to certify that Mr' Adil Bashir )heikh has completed his

    )ummer Trainin!Project under my direct superision' *e underwentthe )ummer Trainin! on andfrom 1"thof May "#1#to "ndof +uly "#1#, durin! which he was assi!ned the task of Unit linked-nsurance plans offered by -.-.- Prudential and its comparison

    withits competitors/ which he has successfully completed and thesame is presented inthe form of the present Project 0eport'-t is further

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    certified that the project report submitted by Adil Bashir)heikhreflects his ori!inal work and on the work assi!ned to him forthe )ummer Trainin!and that the present project report has not been

    submitted elsewhere for award of any de!ree, diploma orfellowship'Mr' 2asir AhmadA!ency Mana!er

    D E C L A R A T I O N

    -,

    Adil Bashir )heikh, a bonafide student of MBA 34ull Time5

    Pro!ramme at the-M67, Pune, hereby declare that - haeunder!one the )ummer Trainin! at -.-.-Prudential 8ife-nsurance .o' 8td' under the superision of Mr'*'9 Abhyankar onand from 1"%May to #"%+uly'- also declare thatthe present project report is based on the aboe summertrainin!and is my ori!inal work' The content of this projectreport has not been submittedto any other uniersity orinstitute either in part or in full for the award ofanyde!ree, diploma or fellowship'4urther, - assi!n the ri!ht tothe uniersity, subject to the permission fromtheor!anisation concerned, use the information and contentsof this project to deelopcases, case lets, case leads, and papers forpublication and:or for use in teachin!'Place; Pune Adil Bashir )heikh7ate; "1%#$%"#1# 0oll no'; #$%MBA395%A

    ACKNOWLEDGEMENT

    -t is with immense satisfaction that, - am completin! my)ummer Project 0eport, - therefore,would like to waitfor few moments and thank -M67, B

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    members for their e>tensie support by impartin! in us thepractical approach of corporate sector, and theiraluableback in! of !ett in! ourseles inoled with

    the functionin! of the company rather thanjustinole us in our projects'- would also wish toacknowled!e my profound !ratitude to -.-.- Prudential8ife -nsurance .o'8td' who allowed me to do )ummerTrainin! and helped me in the completion of this project'-am e>tremely !rateful to all the concerned employeesfor their full support and !uidance despitetheir ti!ht and

    busy schedules'- would like to e>press my special andsincere thanks to Mr' 2asir Ahmad 3A!encyMana!er5who happened to be my industry !uide forrenderin! aluable !uidanceand necessarysu!!estions in brin!in! out this projectreport'8ast but not the least? - shall fail in my duty, if - don@tthank all those concerned people who haedirectly orindirectly contributed in the completion of this entire )ummer-nternship Project'Adi1 S(ei;(

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    %.#! Limit*ti,& ,- t(e tudy

    An underlyin! assumption for the entire project is that the

    details and the feedback receiedfrom the population is true')ample of only 1## respondents is selected from thepopulation'

    )ome of the respondents were not ready to fill thequestionnaires and some of them werenot ready to comeout openly'

    C(*posed to same or similar riskshares loss of the unfortunatefew'8oss of assets depries the owner of the e>pected benefit'-nsurance in this conte>t is a mechanism that helps

    to reduce the aderse consequences dueto loss of assets'. NEED FOR INSURANCE:

    The possibility of dama!e to assets caused by any perilis the risk that the asset is e>posedto'0isk means the possibility of loss or dama!e that may or may

    not happen'

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    -t is because of the uncertainty about the risk that insurancebecomes important'

    Co uncertainty implies no insurance'*uman life is an income !eneratin! asset that can be lost incase of early death or disabilitycaused by an accident'-nsurance does not protect the assets but only compensates the

    economic or financial loss'Basically, insurance coers tan!ible assets but theconcept can be e>tended to intan!iblesalso'People are e>posed to risks the consequences ofwhich are difficult to be borne by anindiidual' Thepurpose of insurance is to protect the income ofindiidual and proidefinancial security to his familydependent on his income in the eent of his premature death'The indiidual himself also needs financial securityfor the old a!e or on his becomin!permanently disabledwhen his income will stop

    Co p e r son shou ld b e in a pos i t io n t o ma ke theri sk ha pp en or oc cu r an d ta ke un fa ir adanta!e'-nsurance coers the risk of dyin! too early or liin! too lon!'." HISTORY OF INSURANCE

    The ori!in of insurance is ery old' The time when we werenot een born? man has sou!htsome of protection from the

    nature' The basic ur!e in man to secure himself a!ainst

    $

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    anyform of risk and uncertainty led to the ori!in ofinsurance'*istorians beliee insurance first deeloped insummer and Babylonia 3both in whatis now -raq5

    be!innin! in about ###B.' The merchants andtrade rs of these societ ies transferred and pooled theirmoney to protect themseles from losses of car!o tothieesand pirates'- n t h e 1 &thcentury B., Babylonian kin! *ammurabi deelopeda code of law,known as the code of *ammurabi,

    whichcodifie d many specif ic rules !oernin! thepracticesof early risk%sharin! actiities' 4or instance, the codedictated that traders had torepay merchant s whofinanced tradin! oya!es unless thiees stole !oodsin transit, inwhich case debts would wecancelled')ea!oin! merchants from Phoenicia 3in andaround present%day 8ebanon5 be!anus in! a system ofinsurance known as bottom about 1"## B.' -n thissystem' Backer @sloaned money to merchants to financeoya!es' Merchants offered their ships 3the hullwasknown as the ship@s Dbottom@5 as collateral for suchloans'Ehen a trip succeeded, the merchant wouldpay the trip@s backer the ori!inal loan plus interest,the equialent of a premium' -f a shop went down on its

    oya!e, the trip@s backer would cancel the merchant@sloan' 4orms of insurance resemblin! bottomry hadspread toother parts of Asia and the Mediterranean by =##B.'-n the last seeral centuries B. the societies of 9reeceand 0ome deeloped someof t he ear lies t systems oflife insurance' 9reek and roman citiFens formed

    beneolentsocieties? or!aniFations in which members

    &

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    paid dues that went toward payin! for the burialofmembers who died' )ometimes these societies alsopaid for the liin! e>penses of deceased members@

    families' 7urin! the Middle A!es 3thto 1thcenturies A75, workersjoined to!ether in craft' Many !uilds,particularly in 6n!land and -taly, proided benefits toworkersand their families in the eents of illness or death'

    .# LIFE INSURANCE IN INDIA:.#% INTRODUCTION:

    Eith such a lar!e population and the untappedmarket area of this populationinsurance happens tobe a ery bi! opportunity in -ndia' Today it standsas a business!rowin! at the rate of 1%"# per centannually' To!ether with bankin! serices, itaddsabout $ perce n t to th e coun t ry@s 97P' -nsp i t e o f a l l t h i s ! r o wth t h e s t a t i s t i c s o ft he penetration of the insurance in the country is erypoor' Cearly G of -ndian populationsare without 8ifeinsurance coer and the health insurance' This is anindicator that !rowthpotential for the insurance sector isimmense in -ndia, -t was due to this immense!rowththa t the re!u l a t i ons were in t r oduc ed i n th

    e ins uranc e se c tor a nd in co n t in ua t i on the !oernment in 1HH to e>amine the arious aspects of theindustry constituted Malhotra.ommittee/' The k