Financial Performance EMAMI

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    A STUDY ON FINANCIAL PERFORMANCE USING

    RATIO ANALYSIS AT EMAMI LTD

    SUMMER PROJECT REPORT

    Submitted by

    A.GAYATHRIDEVI

    REGISTER 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

    PONDICHERRY UNIVERSITY

    PUDUCHERRY/ INDIA

    SEPTEM0ER 33!

    1

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    SRI MANA2ULA VINAYAGAR ENGINEERING COLLEGE

    PONDICHERRY 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 LTD4  is 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 Uniersity

    durin! the academic year "##$%"##&'

    GUIDE HEAD OF THE DEPARTMENT

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

    ETERNAL EAMINER 

    TA0LE OF CONTENTS

    "

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    AC2NO;LEDGEMENT

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    AC2NO;LEDGEMENT

    * would like to e+press my heartfelt !ratitude to our chairman  M'.N.2ESAVAN, -ri

    Manakula .inaya!ar /n!ineerin! 0olle!e for the e+tension of the colle!e facilities which

    enabled me to complete this project'

    * feel obli!ed to our Mana!in! irector   M'.DHANASE2ARANE, -ri Manakula

    .inaya!ar /n!ineerin! 0olle!e for his support and encoura!ement'

    * would like to e+press my sincere thanks to our principal

    D'.V.S.2.VEN2ATACHALAPATHY/ for proidin! the colle!e facilities for the completion of this project'

    * also thank M'. JAYA2UMAR/ 2'3', epartment of Mana!ement -tudies, for his

    aluable su!!estion and assistance throu!hout the project'

    * owe my achieement to the inspiration and kind !uidance to my respected

    M'.R.HEMALATHA/ 4ecturer, epartment of Mana!ement -tudies, and * am thankful for 

    her sincere !uidance as my *nternal 5uide to successfully complete my project'

      * e+press my sincere thanks to the adisory committee members and staffs, epartment

    of Mana!ement -tudies for their continuous monitorin! and assessment'

    * thank  M'.T.R*@*R*@*& GMB /mami 4td' for helpin! and !uidin! me throu!h out

    the project'

      * e+press my deep sense of !ratitude to my family members and to my dear friends for 

    their support and encoura!ement durin! the entire course of study'

    6

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    A0STRACT

    *n this project, titled “A STUDY ON FINANCIAL PERFORMANCE USING

    RATIO ANALYSIS AT EMAMI LTD7' This aim is to analysis the liquidity and profitability

     position of the company usin! the financial tools'

      This study based on financial statements such as 8atio Analysis, 0omparatie balance

    sheet' By usin! this tools combined it enables to determine in an effectie manner'

    The study is made to ealuate the financial position, the operational results as well as

    financial pro!ress of a business concern'

    This study e+plains ways in which ratio analysis can be of assistance in lon!%ran!

     plannin!, bud!etin! and asset mana!ement to stren!then financial performance and help

    aoid financial difficulties'

    The study not only throws on the financial position of a firm but also seres as a

    steppin! stone to remedial measures for /mami 4imited'

    This project helps to identify and !ie su!!estion the area of weaker position of 

     business transaction in “EMAMI LTD7'

    9

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    LIST OF TA0LES

    T*b1e N, N*me ,- T*b1e P*)e N,.

    9'1 0urrent 8atio "$

    9'" :uick ratio ";

    9') 0ash ratio )1

    9'6 Aera!e 0ollection Period )6

    9'9 *nentory Turnoer 8atio )9

    9'< =orkin! 0apital Turnoer 8atio )$

    9'$ >i+ed Assets Turnoer 8atio );

    9'& Proprietary 8atio 6"

    9'; ebt to /quity 8atio 6)

    9'1# *nterest 0oera!e 8atio 69

    9'11 5ross Profit 8atio 6&

    9'1" ?et Profit 8atio 6;

    9'1) 8eturn on *nestment 91

    9'16 8eturn on /quity 9)

    9'19 8eturn on Total Assets 99

    9'1< 0omparatie Balance -heet as on )1st March

    "##1@ "##"

    9&

    9'1$ 0omparatie Balance -heet as on )1st March

    "##"@ "##)

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    LIST OF CHARTS

    CHAPTER 8 I

    C(*'t N,. N*me ,- C(*'t P*)e N,.

    9'1 0urrent 8atio "&

    9'" :uick ratio )# 9') 0ash ratio )"

    9'6 Aera!e 0ollection Period )6

    9'9 *nentory Turnoer 8atio )<

    9'< =orkin! 0apital Turnoer 8atio )&

    9'$ >i+ed Assets Turnoer 8atio 6#

    9'& Proprietary 8atio 6"

    9'; ebt to /quity 8atio 66

    9'1# *nterest 0oera!e 8atio 6<

    9'11 5ross Profit 8atio 6&

    9'1" ?et Profit 8atio 9#9'1) 8eturn on *nestment 9"

    9'16 8eturn on /quity 96

    9'19 8eturn on Total Assets 9<

    $

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      INTRODUCTION

    %.% COMPANY PROFILE

    %.%.% HISTORY OF THE COMPANY :

      /mami, which started as a cosmetics manufacturin! company in the year 1;$6, adancin!

    with increased momentum has e+panded into /mami 5roup of 0ompanies of today' /en

    thou!h cosmetics and toiletries continue to be the main thrust area, the other companies in the

    /mami 5roup are performin! equally brilliantly' >rom health care institution to medicines,

    from real estate to retailin! and, from paper to writin! instruments, 2ospital, /mami is

    creatin! one success story after another'

    %.%. Vii,& *&d Mii,& :

    Vii,&

      A company, which with the help of nature, caters to the consumers needs and their inner 

    crain!s for dreams of better life, in the fields of personal and health care, both in *ndia and

    throu!hout the world'

    Mii,&

    • To sharpen consumer insi!hts to understand and meet their needs with alue%added

    differentiated products which are safe, effectie  fast'

    • To inte!rate our dealers, distributors, retailers and suppliers into the /mami family,

    thereby stren!thenin! their ties with the company'

    • To recruit, deelop and motiate the best talents in the country and proide them with

    an enironment which is demandin! and challen!in!' • To stren!then and foster in the employees, stron! emotie feelin!s of oneness with the

    company'

    •  To uphold the principals of corporate !oernance and moe towards

    decentraliCation to !enerate lon! term ma+imum returns for all stake owners'

    • To contribute whole heartedly towards the enironment and society and to emer!e as a

    model corporate citiCen'

    &

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    %.%." V*1ue:

    Ree+t -,' e,1e:

     =e treat indiiduals with di!nity and respect' =e continue to be honest, open and ethical in

    all our interactions with dealers, distributors, retailers, suppliers, shareholders, customers and

    with each other'

    C,&ume' de1i)(tD

     =e ma+imiCin! that our business can succeed only if we can create and keep customers' =e

    manufacture products that offer alue for money, which are differentiated and delier safe,

    effectie and fast solutions'

    I&te)'ity:

      People at eery leel are e+pected to adhere to the hi!hest standards of business ethics'

    Anythin! less is unacceptable' 3ur ethical conduct transcends beyond policies' *t is in!rained

    in our corporate tradition that is transferred from one !eneration of employees to another' =e

    comply with applicable !oernment laws and re!ulations in the !eo!raphies where we are

     present'

    u*1ity:

     =e are committed to e+cellence in eerythin! we do' 3ur credoD There is always a better 

    way% =e must think creatiely, continuously innoate and pursue new ideas to achiee

    uncommon solutions to common problems'

    Te*m,':

     Teamwork is the cornerstone of our business that helps delier alue to our customers' =e

    work to!ether across titles, job responsibilities and or!aniCational structure to share

    knowled!e and e+pertise'

    T(e 'i)(t e&7i',&me&t:

      *t is our responsibility to create an enironment that helps employees realiCe their full

     potential'

    ;

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    Le*de'(i:

     =e reco!niCe that we can be a leadin! company th