Professional Documents
Culture Documents
in his career.
India is known the world over as `The Home of Spices. The climate of the country
is ideal for the growth of almost all spices. Spices are an important group of
agricultural goods, which are virtually indispensable in the culinary art. They also
play a significant role in our national economy and also in the economies of several
spice producing, exporting and importing countries. India accounts for about 45%
of the global spice exports. Eastern Condiments Pvt Ltd. manufactures spices and
masalas. It sells South Indian powders, such as rasam, sambar, curry, pickle
powder, and other spice powders through its shops. And it was a growing company
in India and also it was a largest manufacturer condiment and it is one of the
leading brands among the South India. The company sells its products in Kerala
The study helps to get awareness about the organizational structure and functioning
opportunity to interact with the people working in the organization and financial
structure of the company. The study has been carried out to get an understanding of
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STATEMENT OF THE PROBLEM
Finance is the lifeblood and nerve centre of a business, just as circulation of blood
is essential in the human body for maintaining life, finance is a very essential to
smooth running of the business. There for financial analysis is very significant as
far as present day trend is concerned. Spices industry and business is fast growing
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METHODOLOGY
The study is made personally visiting the company. The data were collected
1) Observation
employees etc.
2) Data collection
Primary data
Primary data collected through discussion with manager, officers and employees.
Secondary data
Secondary data for the study was collected from internal annual reports, website,
and office records were used for collecting relevant information for this study.
The data needed to prepare this report was obtained from other published sources
The following tools are used with the analysis and interpretation of financial
1) LIQUIDITY RATIOS
Current ratio
Quick ratio
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2) LEVERAGE RATIOS
Debt-Equity ratio
Proprietary ratio
3) PROFITABILITY RATIOS
The study was restricted only with available information and it may not be
authentic one.
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CHAPTERISATION SCHEMA
The project has been articulated with the help of six chapters as follows:
Chapter 1 - Introduction
framework
This chapter focuses on the literature review where project details the evolution of
This chapter focuses on the brief history of the organization, History and growth,
This chapter includes the analysis and interpretation made after the study of the
project and gives the result of analysis. And SWOT analysis of the company.
This chapter includes the findings, conclusion and suggestions made after the
study.
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LITERATURE REVIEW
statements.
development and attained the present position. Evolution of financial analysis helps
enterprise, the Balance Sheet reflecting the assets and liabilities and the Income
Smith & Ashburne defines Financial Statements as “The end product of Financial
position of the enterprise the result of its recent activities and an analysis of what
statements.
between the items of the Balance Sheet and the Profit and loss Account.”
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single set of statements and a study of the trend of these factors as shown in a series
of statements.
Amir et al. (1993) were the first to use the term “value relevance”
the stock prices and stock market indicators such, Price-Earnings (P/E) or Price-
Book (P/B) ratios. Misund et al. in their study on the value relevance of accounting
figures in the international oil and gas industry concluded that all accounting
Mingyi Hung (2000) in his paper on “Accounting Standards and Value Relevance
accrual accounting (versus cash accounting) negatively affects the value relevance
negative effect, however, does not exist in countries with strong shareholder
protection.
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INDUSTRIAL PROFILE
India is known the world over as `The Home of Spices. The climate of the country
is ideal for the growth of almost all spices. Spices are an important group of
agricultural goods, which are virtually indispensable in the culinary art. They also
play a significant role in our national economy and also in the economies of several
spice producing, exporting and importing countries. India accounts for about 45%
of the global spice exports. In India, from the point of view of both domestic
about 109 spices and India produces as many as 75 in its various agro climatic
regions. The term ` spices and condiments` applies to `natural plant or vegetable
products or mixtures in whole or ground form, which are used for imparting flavor,
aroma and piquancy to the food items`. Spices are also being used within the
Spice industry has been witnessing phenomenal growth rate both in the
international and domestic sector. The growth in this sector can be attributed to
the change in the life style patterns of the consumers all over the world. The
shift in the consumption trend towards natural products has also contributed to
the increased global demand of spices and culinary herbs. Spice and derivatives
A few developing countries especially in the Asian continent are the major
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trade takes place in the dried form. India, Indonesia, China are few of the prime
India produces 2.5 million tons to 3 million tons of spices annually. India
volume and value, India accounted for 46 percent and 23 percent in value of
global spice trade. (Source: Spices Board India) India accounts for 25-30 per
cent of world‟s pepper production, 35 per cent of ginger and about 90 per cent
of turmeric production.
Indian spices played important role in the history of various lands discovered or
destroyed. Spices have also played a political role in the history. The use of
spices from the east became a status symbol by the year 1200 and the European
preoccupation with the world of spices was born. The use of spice in food mean
money and power and the desire to acquire these precious status symbols led to
Indian spices also fitted into philosophic concepts of improving health, since it
was understood that they could affect the four humors blood, phlegm, yellow
bile and back bile) and influencing the corresponding moods, (phlegmatic,
choleric and melancholic). Thus, ginger would be used to heat the stomach and
improve digestion; clove was believed to comfort the sinus, mace would prevent
colic and bloody flaxes or diarrhea; nutmeg would benefit the spleen and relieve
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Among the Indian Federal states, Kerala tops in pepper (96 percent), Cardamom
(53 percent) and Ginger (25 percent) production in the country. Andhra Pradesh
leads in Chilly and Turmeric production in the country with 49 per cent and 57
in the country, Rajasthan emerges as the largest producer with 63 per cent, 56
per cent and 87 per cent. The world spice trade is estimated at US$ 1.5-2 billion
At present India produces around 2.5 million tons of different spice valued at
approximately 3 million US dollar, and hold the premier position in the world.
Because of the varying climate suitable for the spice cultivation almost all spices
are grown in this country. In almost all the 28 states and six union territories of
Kerala is a land of spices considering the large variety of spices grown in the
state. The most popular among the spices are pepper, cardamom, turmeric,
chilies and ginger. Pepper known as the „king of spices‟ is perhaps the world‟s
oldest known spice and is cultivated in over 15800 hectares in Kerala, which
There are a lot of opportunities for investors in spice sector and spices board.
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ABOUT THE COMPANY
Eastern was spearhead by late Mr. M.E MEERAN, who founded Eastern
in decision making, he steered the company from success to success. His legacy
lives on.
The “Eastern Condiments Pvt. Ltd” started in 1991 with a dream, making good
products available to the common man at the right prices., is a pioneer in the state
to produce packaged curry powders, Masala powders, spices and coffee powder.
Eastern Condiments Pvt Ltd. manufactures spices and masalas. It sells South Indian
powders, such as rasam, sambar, curry, pickle powder, and other spice powders
through its shops. And it was a growing company in India and also it was a largest
manufacturer condiment and it is one of the leading brands among the South India.
The company sells its products in Kerala and outside Kerala. In the early stages the
company exports its products Saudi Arabia and Arab Emirates and now the
company exports its products in various parts of the world like Gulf & Western
largest manufacturer and market leaders with a market share of 78 % in Kerala and
one of the leading brands in south India. A name that will hold its own for years to
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And now the Eastern Condiments Pvt Ltd have a tie-up with an American
company “MECORMIC” and Eastern condiments given their 26% share to that
company.
The story of Eastern curry powders began in a small mountain township called
Eastern Trading Company at Adimali. The capacity of the firm was 100 kg per
day at the starting time. He could establish a sales network in Idukki district. It
was done with the support of KSFE. He planned to increase the capacity of the
plant to 2000 kg. It is the first company in Kerala which installed the IMPEX
From the beginning of the company Mr. M. E. Meeran is the managing Director
of Eastern Coffee and Curry Powder with 400 employees. The production at the
initial period was only 100kg per day, now it has the capacity to produce around
130 tons per day. In 1993 the company got spice board approval for starting
export.
In 1995 a new plant was started at Theni and also the exporting unit called
Eastern spice and export was launched. The period between 2003 and 2005 was
the period of plant expansion and unification. In 2003 the company got ISO
9001 certification. In 2007 the company got ISO 22000 certification. In 2008 the
company achieved the target of 10 crore sales. In 2008 the company launched
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tea powder in the name of „Eastea‟. Presently the company is running with a
The purity and freshness of Eastern Curry Powder made “Eastern” a house hold
name in India and abroad. The company exports its product to kingdom of Saudi
Arabia and United Arab Emirates for the past four years and now its export the
product to Gulf & Western countries Middle East, U.K, U.S.A, Australia and
Germany etc...
manufacturer of curry powder and masala one of the leading brand among the
south India. An expertise and experience collated over a period of 30 years has
Eastern high range of South India and over two million satisfied household all
over stand as solid evidence of its exceptional repute. A name that will hold its
exporters of the quality natural and blended spices powders and spices.
MANAGEMENT
The group is managed by a team of professional and family members. From the
very beginning Mr. M.E. Meeran has been the chairman and managing director
of the company. Now Mr. Navas Meeran is the managing director. In addition
Mr. S.M. Muhammad, Mr. M.E. Muhammad, Mr. Firoz Meeran holds the chain
vice chairman. The company started functioning only with 25 employees. Now
it is grown to more than 2500 employees, they are working with one heart and
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soul for the achievement of the goals of the organization .Mrs. Nabeesa Meeran
playing a key role behind the success of the Eastern Group; she has been the
Stringent quality control techniques has got Eastern several quality certifications
and accreditations, including the HACCP and ISO 22000. Moreover, the
Spices Board of India has awarded Eastern for being the 'Largest Exporter of
2005 - Eastern is the first company in India to get the ISO 22000 certification.
accredited by RVA the first body in the world for food safety accreditation. It is
1956 on 26th Feb 1991 having its registered office at Eastern condiments Pvt
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THE EASTERN GROUP OF COMPANIES
Eastern group of companies is a group with diverse interest and a world leader
in Indian spices Eastern has ventured in to various areas like tires, retreads
mattresses, garments, packaged food , mineral water , public school and has
The “Eastern Condiments Pvt. Ltd” started in 1991 with a dream, making good
products available to the common man at the right prices, is a pioneer in the
state to produce packaged curry powders, Masala powders, spices and coffee
powder. Eastern Condiments Pvt Ltd. manufactures spices and masalas. It sells
South Indian powders, such as rasam, sambar, curry, pickle powder, and other
spice powders through its shops. And it was a growing company in India and
also it was a largest manufacturer condiment and it is one of the leading brands
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Eastern Treads Ltd
black vulcanizing cement. Eastern tread ltd is an ISO 9001-2000 certified company
and it entered into the industry in the year 1986. And the Eastern Treads
manufacture conventional treads and the company firstly started at a private ltd
company and it was changed into a public ltd company. And also the company
went for public issue and the shares listed in Indian Stock Exchange. Eastern
treads is managed by Mr. Navas M.Meeran he was a youngest person and he has a
vision for the development of the group and also he has 12 years future experience
in the industry. Eastern Treads design produced suit tyres for all types of vehicles
from heavy trucks to passenger cars. It is not only a cost effective product but also
Sunidra mattresses Pvt.Ltd. was set up in 1999. Nidra‟ means sleep in Sanskrit.
The promise of good sleep and rest is ensured by Eastern Mattresses Pvt.
Limited which manufactures and sells the Sunidra range of mattresses, cushions
Thodupuzha in Idukki district, Kerala. Coir, a natural fibre derived from coconut
husk adds to comfort and luxury of the mattress. Eastern Mattresses Pvt Ltd.
coir mattress uses the UNICOM technology to combine the resilience of coir for
contoured support with the sensuous comfort of foam that ensures blissful,
comfortable and healthy sleep. Excellent quality at right pricing has made
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Sunidra popular inside and outside Kerala. Exported to many countries, Sunidra
In recent time the company launched a new product „Eastea‟ from its product line.
“Taste and Strength in every sip”, Eastea - Premium blended tea, from Eastern has
just entered the market with its signature promise of taste and strength. From the
rolling hills of the Nilgris where the nip of the frost deepens the flavour of fresh
green leaves comes Eastea. Carefully picked, processed and packaged to seal in its
Group,. Eastern Clothing Company introduced their products like shirts & trousers
in the brand name of King Richard in 1999. This brand was targeted at the middle
class. Top quality fabrics are used in the manufacture of KING RICHARD brand
(Utilizing 100 % cotton fabrics from leading Indian mills like Aravind,
Vardhaman, BVM, and also Italian brands like Morarjee Brembana. The shirts are
Eastern Aqua Mineral, a recently launched company was set up in the year
2002.Eastern Aqua Mineral entered the area of packaged drinking water with
the state of art plant located at Ernakulum district. Eastern packaged drinking
water is of highest purity standard, high quality with control 1286 testing
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facilities and quality product with international standards. It is available in
keeping with Eastern‟s view of bringing high quality products to the common
Eastern Retreads Pvt. Ltd. was set up in 1993 is engaged in retreading of tyres.
hot and cold retreading process. . Retreads are not only cost effective but they are
also dependable, reliable and safe. Retreads are used by truckers with scheduled
delivery times and small package delivery companies with guaranteed delivery
times. Retreads are also environment friendly tyres which are basically petro-
chemical products. It takes 22 gallon of oil to manufacture one new truck tyre
most of the oil is found in the casing which is renewed in the retreading
of the competitive nature of the retreading industry truckers can expect to see
The mountain township of Adimali, home to the Eastern Group, with its natural
abundance and moderate climate has all the potentials to become a major
tourist destination and a centre of learning in the hilly district Idukki and in the
State of Kerala at large. Eastern Newton School a prestigious venture from Eastern
aspect of providing quality education to the needy and pragmatic children of the
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high ranges at an affordable fee structure. The school, launched in the year June
2001 is affiliated with CBSE- Delhi and has classes up to 12. The main objective of
the school is to become a role model in the field of education, bringing out the
untapped talents of the children entrusted to our care and enabling them to grow as
PRODUCT PROFILE
In our national economy spices play a very virtual role and our country India is
considered to be the home of spices. The freshness and the purity of Indian spices
and spice powders have made it a favourite in India and all over the world. Spices
are used as flavouring agents in many countries. They improve the flavour and
acceptability of cooked food and make them more delicious. Eastern Condiments
Pvt. Ltd. has varieties of spices, curry powders and pickles in its product mix. The
purity and freshness of Eastern curry powders has helped to enter the customers
Eastern curry powders popularly known as „Strong Masala’ is processed using the
unique flavour-lock technique. The best quality spices are powdered under
stringent temperature control, using micro pulverisers ensuring that the precious
volatile oils that give the flavour to the spice are preserved. Eastern curry powders
are so pure and fresh so that use just half as much as any other for excellent taste.
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Eastern curry powders export to various countries like Middle East, U.K, U.S.A,
Australia and Germany. Eastern has grown into a favourite in Indian home across
the world. Excellent quality and right pricing has become the winning formulae of
the Eastern Group. Eastern curry powder is fast growing into an all India brand
with its entry into new India is considered to be the home of spices. Spices play a
very vital role in our national economy. The purity and freshness of Indian spices
masalas, pickle powders, pickles, rice powders, etc. Now Eastern Condiments
Pvt Ltd has 144 products. The company concentrated on pickles in exporting.
The spices are produced from the plantations of Kerala. Products are produced
Spice Powders
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Eastern Fenugreek Powder
Eastern Belesaru
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Eastern Fish Biryani Masala
Eastern Pickles
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Eastern Tender Mango ( In Brine) Pickle
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Eastern Appam Powder
2. Marketing Department
3. Export Department
5. Production Department
6. Maintenance Department
8. Purchase Department
9. IT Department
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ORGANISATION CHART
Executive Committee
Head- Hr Head - Production Head-Purchase Head-Sales Dgm Technical Secretary Head It
FINANCE AGM
CONTROLER FINANCE
DIRECTOR
MANUFACTERING DY
ASST MANAGER MANAGER
TAXATION
DGM MKTG MANGER SR MANAGER MANAGER
HR& ADMIN PRDN
EXPORTS
SR
SR OFFICER PRODUCTION OFFICERS OFFICERS
HR SUPERS
MANAGER
MKTG
OFFICER ASST OFFICERS
OFFICERS
MANAGER
PRODUCTION
ASST MPD
ASST
MANAGER MANAGER MANAGER
PURCHASE ENGINEERING
MANAGER -
PPC OFFICER
SR.SALES PURCHASE SR MANAGER
OFFICERS TECHNICAL OFFICER
ENGINEERING
SR OFFICER
PPC OFFICERS IT
SALES TEAM SR OFFICER
TECHNICAL WORK
SHOP IN
OFFICERS PPC CHARGE
OFFICER
TECHNICAL
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1. FINANCE AND ACCOUNTS DEPARTMENT
Finance is the lifeblood and nerve centre of a business, just as circulation of blood
is essential in the human body for maintaining life, finance is a very essential to
smooth running of the business. It has been rightly termed as a universal lubricant
which keeps the enterprise dynamic. Finance department deals with planning,
The authorized equity share capital of the company is Rs. 150000000/- divided in
capital of Rs.3 crore and the banking partners is FEDERAL BANK. Company has
1. Monthly Trail balance, Profit and loss account & Balance sheet.
2. Stock statements
3. Purchase register
5. Stock register
6. Asset register
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11. Budgets
The finance & accounts department consists of fourteen (14) staffs in Adimali
division, DY. Manager Finance, DY. Manager accounts, Junior officers, Data entry
officers, Senior Petty casher & petty cashers, who manage and process its functions
There are lots of routine functions which accounting department has to do.
To record the transaction on the basis of invoice, bills and vouchers, keep
Checking and passing the bills of supplier for the payment. A typical business
makes many purchases during the course of a year, many of them on credit,
which means that the items bought are received today but paid for later. So
this area of responsibility includes keeping files on all liabilities that arise
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Preparation of stock register (monthly).
3. Bank/Cash section
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1. Receipt - data entry section
This section handled all receipts of the company and also some payments. An
important and frequent transaction in this section is route sales data entry work.
Route sales are handled by receipt data entry section. Eastern have more than 80
route sales. 98 % of sales are cash sales, only 2% Credit sales, credit provided to
only 200 parties. An important document filed in this section is „Route Sales
every Saturday. Route sales statement contains route name, period, total sales, cash
sales, cash deposited into companies bank account, cash deposited into companies
cash counter and also route expenses and sales summary. Sales summaries are
deposit slip)
To Sales route
To Sales route
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Route sales expenses, sales team those expenses taken from route collection
To Sales route
route sales, if sales is below targeted sales, some portion of amount deduct
This section handled all payments of the company and also other functions. An
important and frequent transaction in this section is data entry work to payment due
for a wide variety of purchases. The accounting department keeps all the
supporting business documents and files. For payment due only if all terms are
correct.
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Important and frequent transaction in this section:
suppers bills, copy of goods received note and copy of purchase order to
Suppler bill contain details such as: suppler address, to address, fright paid
or not, (if not, company pay the fright, as per agreement), quantity of
Goods received note (G.R.N) contains details such as: date, suppers invoice
Purchase order contains details such as: Supplier code, supplier name,
supplier address, purchase order no, purchase order date, purchase item
name & code, quantity, rate, amount, price basis, payment term, mode of
dispatch, warranty, our bank, CST No./ST No., remarks, Tin No., delivery
schedule etc…
Company pays only the amount on the basis of purchase order rate.
After verification of suppers bills, copy of goods received note and copy of
To party
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3. Bank/Cash section
This section handles all bank payment and receipts, and cash provide to petty cash
payee only), Company‟s bank provide only 5 cheque leaf to Adimali division, and
Receive payment advice from Payment processing & data entry section,
payment advice contain details such as: Name of the payee, Vender code,
Prepare bank payment voucher & print and also signed by the preparer.
DY.Accountant.
After that, the cheques are submitted in to bank, or parties directly collect
the cheque.
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This section files documents such as: Bank payment, General journal,
contract bills, cash receipt, medical claims, mobile bills, cash payments
etc…
This section handles all cash payments and receipts, collect bills and verifying the
bills and send to concerned department, receive cheque and verifying that, collect
cash, cheque, and bank slips from sales executives, and provide salary & wages to
employees etc…
Senior Officers
Officers
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2. HUMAN RESOURCE MANAGEMENT DEPARTMENT
Human resources are the real assets of an organization. If treated well, they can
set of pre-determined goals. They employ physical, financial and human resources
in order to achieve goals. Organizations thus depend on people for their survival
and growth. In a similar way people need organizations. The success and failure of
every company depends upon its human resource. The vast majority of people
work to support themselves and their families. But people work for many other
reasons other than economic security, they want to gain recognition and achieve
status or to test and stretch their capabilities. It is a fact that the people are vital for
the effective operations of a company as human effort and brains are the main
an extent.
The key factor in the growth of Eastern is mainly the good and healthy employer-
workers. The workers keep discipline in the organisation and also they do the
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OBJECTIVES OF HUMAN RESOURCE DEPARTMENT
1. To procure right type of personnel for right job at the right time
growth
Personal counseling
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RECRUITMENT PROCEDURES ARE:
A) DIRECT METHOD
Direct method means they are directly gives advertisements in Medias. In Eastern
this method is frequently used for recruitment. The firm places jobs advertisements
in Malayalam, English news papers and T.V media tries to attract as much capable
B) INTERNAL RECRUITMENT
The company for filling the post by efficient and skilled workers from the rank,
surroundings.
SELECTION PROCESS
The selection process is only through direct interviews. The employees are
transferred to different departments on the basis of their skills and abilities. They
conducted a test also but the test conducted only for senior position.
2) Interview
After the test the managers conduct face-to-face interview with candidates and
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But in Adimali branch selection is done only for the posts of sales executive and
drivers. The executives from the Ernakulam branch are directly doing the
PERFORMANCE APPRAISAL
Eastern is following a special type of system for appraising the workers that is
KRA system i.e., the KEY RESULT AREA. Here the performance of individual
employee is evaluated by his superior officer. The officer will evaluate the
employee‟s performance on the basis of result produced by them and gives a report
to the board for a particular period of time. If the board is satisfied he/ she will
Piece rate system: Under piece rate system of payment, wage is paid on the output
produced and not on time. In the packing section they are following the piece rate
system.
Salary system: This mode of payment is applicable for the rest of the workers,
The company provides a lot of non monitory benefits to their employees. Some of
Transportation
Medical insurance
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Pension scheme
Canteen facilities
Vice president
Senior officer
Officers
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3. PRODUCTION DEPARTMENT
production is concerned with step by step process of raw material into finished
goods.
OBJECTIVES
b. Production planning
c. Quality control
d. Inventory control
f. Cost control
The first step in the production takes place both at Adimali and Theni where the
raw material (chilly, turmeric, coriander) needed are purchased in bulk are
cleared, roasted, crushed, powdered and packed and dispatched to Adimali for
masalas, instant pickle powder and processing of pickles. The company has a
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production capacity of 12 tons per day. To ensure that the spices reach the
international packing standards to protect, preserve and present its products. For
bulk packing, the VACCUPAC system is used where in products are packed in
vacuum, thus protecting the powders from fungal infection, moisture, oxidation
etc.
Production function performs according to instructions from the PPC. PPC gives
department. A stock of goods for 3 days production is kept with the department
daily. The department has 14 vehicles for the purpose of transferring raw
materials. The department has around 750 workers. The production is dependent
on the skill and experience of the workers. The productivity is around 75%.
QUALITY ASSURANCE
The company follows stringent measures which are applied with regular
laboratory testing. The Indian spices board with their spice house certification
has recognized the company‟s obsession with quality and hygiene. Eastern has
also achieved the highest ranked approvals for quality, the Hazard Analysis
Critical Control Point (HACCP), ISO 9002 certification and ISO 22000
certification.
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PRODUCTION FLOW CHART
Chilies, coriander,
Cleaning Drying Roasting
turmeric &spices
Mixing Powdering
Packing
Marketing
MANAGER
PRODUCTION
AST.MANAGER
SR.SUPERVISORS
SUPERVISORS
Rosting, Powdering,
Hnd.paking, Mach. pking
Workers
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4. MAINTENANCE DEPARTMENT
Maintenance department of Eastern are responsible for keeping the plant and
sections.
1. Electrical
2. Mechanical
3. Technical
4. Automobile
1. PREVENTIVE FUNCTION
schedule and the preventive maintenance is done according to it. This is done in
This is done to restore the machine back to the work if it undergoes a break down.
3 PERIODICAL MAINTAINCE
This is done on a specific period of time it is like routine happens in fixed time to
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OBJECTIVES OF MAINTENANCE DEPARTMENT
accomplishment
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5. MARKETING DEPARTMENT
the company is its marketing strategy compared to their rivals. The system
followed by Eastern is very unique and it has been very effective. They deal with
the wholesalers and retailers directly at their door step with the help of around 80
DIRECT SALES
This peculiar feature of Eastern curry powders helped it to vary from order
companies. The group directly distributes the products to retailers in Kerala. The
company has around more than 100 vehicles which go on around 80 strong routes
covering the entire state. A sales executive, sales assistant and driver will be on
each van to go for the sales. 22 lakh kg sales in Kerala per month. The company
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The various sales techniques consist of:-
1. Route Sales
4. Export Sales
5. 30 Reverse vehicles
6. Performance awards
performance.
Company has four depots, which are at Kozhikode, Kottayam, Trivandrum, and
Trissur. Sales target is fixed only after looking the previous 3 months sale. More
sales are done in Kottayam (Dts) .The sales executives for each route give the
orders to be dispatched to each sale depot. He also takes care of the billing and cash
transactions. After making a sale, a sale invoice is made and the summary is given
to the cash department. The assistant places the order to different shops. After the
delivery of goods, the vans return after verifying the order form and checking the
stock. The accounts are maintained on a weekly basis. The company has around
40000 retailers and 15 dealers. Mainly, cash transactions are undertaken and credit
Meetings of the sales executives are held every week after they return from their
different routes. Here every aspect of the weekly sales will be discussed and any
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By the direct distribution the company has achieved a lot of benefits. Some
1. They can deal with the wholesalers and retailers directly at their door step.
2. The company can maintain a good relationship with the wholesalers and
retailers.
3. The company can avoid the role of intermediaries in the distribution of the
related expenses.
4. The company‟s own vehicles used for distribution aid to give an important
Eastern Condiment has entered in to world market in the recent years. In India it
is capturing both urban and rural markets. In Kerala it is the market leader with
Eastern also deals with sales of their products outside Kerala by using well
Page - 46
Outside marketing:
Factory
Super stockist
Distributers
Retailers
CHAIRMAN
MANAGER
ASSISTANT MANAGER
SR.SALES EXECUTIVES
ent
SALES EXCECUTIVES
Page - 47
6. QUALITY CONTROL DEPARTMENT
central laboratory of eastern condiments pvt.ltd because all critical and major
decisions are taken from this laboratory itself. Functions of this department is to
ensure that the quality objectives of the firm are relevant to meet the requirements
of the product quality and are periodically measured and compared against product
quality requirement. Before packing each sample of products are tested in the lab
and will pack only if they get the good quality certification from the lab. And if any
products are returned by the customers, they will be tested to find out the reason for
rejection.
MAJOR FUNCTIONS
Microbiology
Chemical
Instrumental
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Eastern has the first fully automated microbiology laboratory in India in food
industry. Microbiology lab is used to find out the bacteria, microbes etc. present in
Chemical test helps to detect stones, moisture, oil percentage etc… The strict
quality control techniques has got Eastern several quality certifications and
department.
TECHNICAL MANAGER
MICROBIOLOGIST
SENIOR OFFICER TECHNICAL
TECHNICAL OFFICER
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7. PURCHASE DEPARTMENT
smoothly. A vital aspect of this role is ensuring stocks arrive on time and to the
efficiency of its purchase department. The various raw materials needed for the
operations
lowest cost.
To buy the best value, a combination of right quality at the best price with
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FUNCTIONS OF PURCHASE DEPARTMENT
Checking of requisitions
Verification and passing of suppliers‟ bills to see that payments are made
promptly.
Purchase of raw materials , items such as dry chilies, coriander, turmeric, cumin,
fenugreek, fennel, rice, fruits and vegetables, preservatives, salt etc and outsourced
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STRUCTURE OF PURCHASE DEPARMENT
Board of Directors
AGM Purchase
Asst Managers
Senior Officers
Officers
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8. EXPORT DEPARTMENT
Eastern Condiments Pvt Ltd started exporting in the year 1995. Today the company
is exporting its products to almost all gulf countries, and to the different parts of the
world, like USA, UK, UAE and AUSTRALIA. The Company has its own
tonnes per month (60 containers), export through ship. Eastern exports all their
products into the foreign market. Company exports mainly to gulf countries about
75% of export take place in gulf countries. 25 % of profit portion through export.
Export policies
Packed materials are transferred using containers each have 10 tone capacity
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Exported products are reaching the hands of distributers from there it reach the
customers.
ACHIEVEMENTS
received the spices board award for the best exporter continuously for the
last 14 years.
MANAGER
SENIOR OFFICER
JOUNIOR OFFICER
OFFICER
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9. IT DEPARTMENT
Eastern condiments limited are fully automated ERP installed factory. Computer
system enables each process to do faster and safe manner. Artificial intelligence
technology, and the term is more recognizable than ever before. The information
The Eastern is a fully computerized. Adimali division has 140 machines. The
access. All the departments are connected via networks. Eastern uses oracle
based software called ORION, which has been customized to suit the needs of
line.
FEATURES
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MAIN FUNCTIONs OBJECTIVES OF IT DEPARTMENT
Data management.
Computer networking.
Computer engineering.
Software design.
Resource Planning) which was started in the year 2001 and was centralized in
the year 2005. ERP enables fast transactions and systematic in all its functions.
ERP also helps in generating MIS reports which help in decision making. The
STRUCTURE OF IT DEPARTMENT
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10. PRODUCTION PLANNING AND CONTROL DEPARTMENT
This department mainly focuses on easy and smooth going of manufacturing unit
from purchase, production, and marketing. They make plans according to the data
provided by the marketing department (The requirements for coming period) Based
on this they give instruction to the purchase dept and the production department.
They plan for 3 months later it divided on monthly basis and finally supervisors in
Based on the marketing forecast PPC department makes free zed plan then they
check with purchase department about raw material availability in case if there is
no adequate stock the procurement process take place after this production plan is
regarding production. It find out what is to be produced, when, what quality and it
even informs the purchase department about what raw materials to be purchased
for production.
PPC regulates stock inflow and out flow with the help of ORION software so the
amount stock will be readily available. They make plans according to the data
requirement and will depend on the seasonal demand. The monthly production of
Eastern is 240000 tons. This is based on monthly demand. Every sales executive
gives the order from retailers, Based on this PPC give instruction to both
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OBJECTIVES OF PPC DEPARTMENT
Quality control
Minimize cost
MANAGER PPC
SENIOR OFFICER
OFFICERS
SUPERVISOR
WORKERS
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11.TAXATION DEPARTMENT
Eastern condiments Pvt ltd has separate department for taxation purpose
performing under the finance department. Eastern deals with spices related
products so some item have tax on state wise. Eastern follows one month advanced
tax payment thorough E-filing with government of Kerala. Taxes are majorly paid
For actual tax Payment Company follows: Internal audit, Statuary audit & Macro
audit.
MANAGER
Deputy Manager
Senior manager
WORKERS
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Introduction
characteristics of a firm from accounting data & financial statement. The goal of
reflected in the financial records and reports. Its main aim is to measure the firm‟s
RATIO ANALYSIS
Financial ratio analysis is a study of ratio between various items of groups of items
in financial statement. It also based upon various financial ratios, which are
calculated from the data provided in company‟s balance sheet & profit and loss
account.
As per I.M. Pandey “Financial ratio in the relationship between two accounting
enterprise. One can draw conclusions about the financial position of a concern with
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The following categories of some ratios calculated from the books of eastern
1. Liquidity Ratios
2. Leverage Ratio
4. Profitability Ratios
1. PROFITABILITY RATIOS
The main aim of an enterprise is to earn profit which is necessary for the survival
and growth of the business enterprise. It is earned with the help of amount invested
in business. It is necessary to know how much profit has been earned with the help
of the amount invested in the business. This is possible through profitability ratio.
These ratios examine the current operating performance and efficiency of the
business concern. These ratios are helpful for the management to take remedial
f. Return On Equity
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a. NET PROFIT RATIO
A ratio of net profit to sales is called Net profit ratio. It indicates sales margin on
sales. This is expressed as a percentage. The main objective of calculating this ratio
efficiency of the business. It indicates the extent to which management has been
effective in reducing the operational expenses. Higher the net profit ratio, better it
is for the business. Net profit ratio = Net profit / Net sales x 100
Net Profit
Financial Year Net Profit Net Sales
Ratio (%)
2006-2007 1385.4 16019.05 8.65
2007-2008 591.85 19487.84 3.04
2008-2009 1210.42 27514.45 4.40
2009-2010 3190.54 32026.17 9.96
2010-2011 1043.62 37590.3 2.78
[source: financial statements]
12
10
0
2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
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Interpretation
This ratio helps in determining the efficiency with which affairs of the business are
being managed. The net profit ratio rises till 2010; the net profit ratio was 9.96. The
net profit ratio decreased during 2011; the ratio was 2.78. But the income of the
company in 2011 is greater than 2010. Provision for doubtful loan and loss on
slump sale of tea division was the main reason for decreasing net profit of the
Return on total
Financial Year Net Profit Total Asset
assets (%)
2006-2007 1385.4 11195.88 12.37
2007-2008 591.85 21118.45 2.80
2008-2009 1210.42 15471.16 7.82
2009-2010 3190.54 16847.31 18.94
2010-2011 1043.62 18975.33 5.50
[source: financial statements]
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Chart: 5.2 Return On Total Asset
20
18
16
14
12
10
8
6
4
2
0
2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
Interpretation
In the year 2010 return on total asset ratio was 18.94. But in the year 2011 the ratio
was 5.50, there has been a sharp decline which means that they are not effectively
This ratio is also known as return on investment (ROI). The primary objective of
invested. It indicates the return on capital employed in the business and it can be
used to show the efficiency of the business as a whole. The higher the ratio, the
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TABLE: 5.3 RETURN ON NET CAPITAL EMPLOYED
Return on Net
PBT (Profit Before Net capital
Financial Year Capital Employed
TAX) Employed
(%)
2006-2007 2190.62 10498.58 20.86
2007-2008 1069.55 14369.54 7.44
2008-2009 1837.73 14701.89 12.50
2009-2010 4684.38 16281.3 28.77
2010-2011 2533.23 18662.3 13.57
[source: financial statements]
35
30
25
20
15
10
0
2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
Interpretation
returns to pay for its cost of capital. In the year 2010 return on investment shows
high return. In the year 2011 return on investment is satisfactory by comparing the
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d. EARNING PER SHARE (EPS)
This ratio helps in the assessment of the profitability of a firm from the stand point
of equity shareholders. This measures the profit available to the equity share
holders per share. The earning per share helps in determining the market price of
the equity shares of the company. A comparison of E.P.S of the company with
another will also help in deciding whether the equity share capital is being
effectively used or not. It also helps in estimating the company‟s capacity to pay
40
35
30
25
20
15
10
5
0
2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
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Interpretation
In the year 2010 EPS of the company is very high, because net profit of the
company is very high. EPS of the company during that year was 37.18 times. But
in the year 2011 EPS of the company is very low (10.81 times) because net profit
This ratio is also known as pay out ratio. It measures the relationship between the
earnings belonging to the equity share holders and dividend actually paid to them.
This ratio is computed by dividing the total dividend paid to the equity
Dividend Pay-Out Ratio = Dividend per Equity Share / Earning Per Share x 100
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Chart: 5.5 Dividend Payout Ratio
80
70
60
50
40
30
20
10
0
2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
Interpretation
earnings per share has been used for paying dividend and what has been retained
for ploughing back. In the year 2009 the company has not providing dividend. In
the year 2008 Dividend pay-out ratio was higher: the pay-out ratio was 75.22%. in
f. RETURN ON EQUITY
It signifies the return on equity shareholders funds. The profit considered for
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TABLE: 5.6 ROE
35
30
25
20
15
10
0
2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
Interpretation
It signifies the return on equity shareholders funds. The profit considered for
computing the ratio is taken after payment of preference dividend. Graph shoeing
fluctuating trend in return on equity. In the year 2010 return on equity is very
higher. But in the year 2011 there has been a steep decline which means that the
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2. ACTIVITY RATIOS / TURNOVER RATIOS
Activity ratios measure the efficiency or effectiveness with which a firm manages
its resources. These ratios are also called turnover ratios because they indicate the
speed at which assets are converted or turned over in sales. These ratios are
Working capital of a concern is directly related to sales. The current assets like
debtors, bill receivables, cash, stock etc, change with the increase or decrease in
sales. Working capital turnover ratio indicates the speed at which the working
capital is utilized for business operations. It is the velocity of working capital ratio
that indicates the number of times the working capital is turned over in the course
of a year. This ratio measures the efficiency at which the working capital is being
used by a firm. A higher ratio indicates efficient utilization of working capital and a
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Chart 5.7 WCTR
0
2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
Interpretation
Working capital ratio of the company is satisfactory. The graph shows fluctuating
trend in working capital ratios. But in the year 2011 a small decline in working
This ratio indicates the extent to which the investments in fixed assets contribute
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TABLE 5.8 FIXED ASSET TURNOVER RATIO
Fixed Asset
Financial Year Net sales Fixed Asset
Turnover Ratio
2006-2007 16019.05 6068.31 2.64
2007-2008 19487.84 7776.17 2.51
2008-2009 27514.45 8708.6 3.16
2009-2010 32026.17 10486.82 3.05
2010-2011 37590.3 10419.09 3.61
[source: financial statements]
3.5
2.5
1.5
0.5
0
2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
Interpretation
Fixed asset turnover ratio of the company shows increasing trend. It is a positive
trend which shows the effective utilization of fixed assets. In the year 2011 the
fixed asset turnover ratio was 3.60 (times). Net sales of the company every year is
increasing trend.
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c. TOTAL ASSET TURNOVER RATIO
This ratio is calculated by dividing the net sales by the value of total assets. A high
ratio is an indicator of over trading of total assets while a low ratio reveals idle
2.5
1.5
0.5
0
2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
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Interpretation
The total asset turnover ratio of the company shows increasing trend from the year
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Chart 5.10 Capital turnover ratio
1.5
0.5
0
2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
Interpretation
Capital turnover ratio of the company shows increasing trend from the year 2008 to
2011. This means that they are utilizing the capital effectively. In the year 2011 the
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3. LIQUIDITY RATIOS
The term liquidity refers to the ability of the company to meet its current liabilities.
Liquidity ratios assess capacity of the firm to repay its short term liabilities. Thus,
liquidity ratios measure the firms‟ ability to fulfill short term commitments out of
a. CURRENT RATIO
This ratio establishes a relationship between current assets and current liabilities. It
indicates the amount of current assets available for repayment of current liabilities.
Higher the ratio, the greater is the short term solvency of a firm and vice a versa.
However, a very high ratio or very low ratio is a matter of concern. If the ratio is
very high it means the current assets are lying idle. Very low ratio means the short
term solvency of the firm is not good. Thus, the ideal current ratio of a company is
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Chart 5.11 Current ratio
0
2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
Interpretation
Current ratio of the company shows fluctuating trend. Current ratio of the company
is greater than the idle ratio 2:1, which means the current assets are lying idle. In
b. QUICK RATIO
Quick ratio is also known as Acid test or Liquid ratio. This ratio establishes a
relationship between quick assets and current liabilities. The main purpose of this
ratio is to measure the ability of the firm to pay its current liabilities. A quick ratio
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TABLE 5.12 LIQUID RATIO
3.5
3
2.5
2
1.5
1
0.5
0
2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
Interpretation
considered good / favorable for a company, but last five years liquid ratios is
greater than 1:1. This means that the company is liquid. And the company has
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4. LEVERAGE RATIO
These ratios are also called efficiency ratios. These ratios measure the owner‟s
stake in the business vis-à-vis that of outsiders. The long term solvency of the
a. DEBT-EQUITY RATIO
know the relative claims of outsiders and the owners against the firm‟s assets. This
ratio establishes the relationship between the outsider‟s funds and the shareholders
ratio is more than that, it shows a rather risky financial position from the long term
point of view. This ratio is very useful to assess the soundness of long term
financial position of the firm. It also indicates the extent to which the firm depends
Shareholders Debt-Equity
Financial Year Outsiders fund
Fund Ratio (times)
2006-2007 5795.07648 7474.3 0.77
2007-2008 10098.75125 7523.08 1.34
2008-2009 8974.54 8212.86 1.09
2009-2010 8660.65 10884.53 0.79
2010-2011 9511.92 11424.81 0.83
[source: financial statements]
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Chart 5.13 Debt-Equity Ratio
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
Interpretation
Debt-equity ratio of the company shows fluctuating trend. A ratio of 1:1 is usually
standard norm for all types of businesses. Theoretically if the owner‟s interests are
b. PROPRIETARY RATIO
This ratio establishes the relationship between shareholders‟ funds to total assets of
the firm. A high ratio shows that there is safety for creditors of all types. Higher the
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TABLE 5.14 PROPRIETARY RATIO
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
Interpretation
Higher the ratio or the share of shareholders in the total capital of the company
better is the long-term solvency position of the company. A low proprietary ratio
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c. FIXED ASSET TO NET WORTH
This ratio shows the relationship between fixed assets and shareholders fund. The
purpose of this ratio is to find out the percentage of the owners fund invested in
fixed assets. If the ratio is greater than one, it means that creditor‟s funds have been
Fixed Asset To
Financial Year Fixed Asset Shareholders Fund Net Worth
(times)
2006-2007 6068.31 7474.3 0.81
2007-2008 7776.17 7523.08 1.03
2008-2009 8708.6 8212.86 1.06
2009-2010 10486.82 10884.53 0.96
2010-2011 10419.09 11424.81 0.91
[source: financial statements]
1.2
0.8
0.6
0.4
0.2
0
2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
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Interpretation
In the year 2008 and 2009 the ratio is greater than one, which means that creditor‟s
funds was used to acquire a part of the fixed assets. In the year 2007, 2010 and
2011 the ratio is below one which means that only shareholders fund was used to
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SWOT ANALYSIS
SWOT is an acronym for internal strength and weakness of a firm and the
environmental opportunities and threats facing the firm. SWOT analysis is widely
used technique through which managers create a quick overview of the company‟s
strategic situation. The technique is based on the assumption that effective strategy
derives a sound „fit‟ between a firm‟s internal resources (strength and weaknesses)
STRENGTHS
Eastern holds more than 78% of the market share in all its products in
Kerala.
freshness.
India that export mainly to middle East, U.K, Australia and Germany.
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Eastern was selected as second most popular brand in Kerala by the
It has the facilities for controlling pollution and also for excellent
productivity.
Best spice export award from spice board for the last 14 year.
Well established quality control lab checks the raw material thoroughly
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WEAKNESS
OPPORTUNITIES
Page - 86
THREATS
market.
Page - 87
INTRODUCTION
The study helps to get awareness about the organizational structure and
organization and financial structure of the company. This study with financial
statement analysis is carried out at Eastern Condiments Pvt.Ltd, The study has
FINDINGS
In the year 2010 company shows good performance, sales was high and net
In the year 2011 gross profit of the company was high, but net profit of the
Loss on slump sale of tea division was the main reason for decreasing net
In the year 2010 return on total asset ratio was 18.94. But in the year 2011
the ratio was 5.50, there has been a sharp decline which means that they are
Page - 88
In the year 2010 return on total asset ratio was 18.94. But in the year 2011
the ratio was 5.50, there has been a sharp decline which means that they are
In the year 2008 Dividend pay-out ratio was higher: the dividend pay-out
In the year 2008 and 2009 the ratio is greater than one, which means that
Eastern curry powder is a household name in India and is the largest exporter
The company won prestigious award for the outstanding export performance
The company ensures high quality and taste to all its products.
The companies have around 200 vehicles for the delivering purpose.
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The company always tries to maintain good customer relationship.
The companies have better chance to extend the market to other countries
also.
Page - 90
SUGGESTIONS
Company can start new plants to cover outside Kerala market accordance
Company can give more advertisement on mass media for outside Kerala
market.
For reducing the cost company can install new automated machineries.
Company can take direct feedback from customers for development of new
products.
area.
Company can try to extend the market to other foreign countries also.
Increasing the exports also helps the company to increase its profit level.
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Conclusion
Financial statement analysis of the company was very helpful to identify the
The study conducted at Eastern Condiments Pvt. Ltd., which is one of the pioneer
in Condiment industry and the market leader in variety of packed curry powders in
South India. Eastern has achieved these enviable heights mainly due to the hard
work and commitment of quality besides bringing a good product at right prices to
the consumers .The study helped me to understand that how the company identifies
the right taste of the consumers and how it became the leading brand in south India
and largest exporter of spice powders in consumer pack from India. I was also able
Page - 92
BIBLIOGRAPHY
NEWS PAPER
BOOKS
Company Albums
WEBSITES
http://www.accounting4management.com
http://www.businessstudies.co.uk
http://www.eastern.in
http://www.indianspices.com
http://www.spicesboard.org
Page - 93
APPENDIX
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2011
1,489.61 1,493.84
Profit After Tax 1,043.62 3,190.54
Add:Surplus brought forward from previous year 5,548.53 3,195.91
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Dividend on Preference Shares 66.96
_
Interim Dividend @Rs.4.50(Previous Year 434.56 378
Rs.4.50)per Equity Share of Rs.10/-each
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Less : Current Liabilities and Provisions 7
(a) Current Liabilities 1,150.94 1,537.88
(b) Provisions 810.46 1,159.99
1,961.40 2,697.87
Net Current Assets 8,243.21 5,794.48
18,975.33 16,847.31
Significant Accounting Policies and Notes on 12
Accounts
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