ACKNOWLEDGEMENT I would like to express my heartfelt gratitude to our chairman Mr.N.

KESAVAN , SriManakula Vinayagar Engineering College for the extension of the college facilities whichenabled me to complete this project.I feel obliged to our Managing Director Mr.DHANASEKARANE , Sri ManakulaVinayagar Engineering College for his support and encouragement.I would like to express my sincere thanks to our principal Dr.V.S.K.VENKATACHALAPATHY, for providing the college facilities for the completionof this project.I also thank Mr. JAYAKUMAR, H.O.D, Department of Management Studies, for hisvaluable suggestion and assistance throughout the project.I owe my achievement to the inspiration and kind guidance to my respected Mrs.R.HEMALATHA, Lecturer, Department of Management Studies, and I am thankful for her sincere guidance as my Internal Guide to successfully complete my project.I express my sincere thanks to the advisory committee members and staffs, Departmentof Management Studies for their continuous monitoring and assessment.I thank Mr.T.RajaRajan (GM) Emami Ltd. for helping and guiding me through outthe project.I express my deep sense of gratitude to my family members and to my dear friends for their support and encouragement during the entire course of study.

ABSTRACT In this project, titled A STUDY ON FINANCIAL PERFORMANCE USINGRATIO ANALYSIS AT EMAMI LTD . This aim is to analysis the liquidity and profitability position of the company using the financial tools.This study based on financial statements such as Ratio Analysis, Comparative balancesheet. By using this tools combined it enables to determine in an

effective manner.The study is made to evaluate the financial position, the operational results as well asfinancial progress of a business concern.This study explains ways in which ratio analysis can be of assistance in long-rang planning, budgeting and asset management to strengthen financial performance and helpavoid financial difficulties.The study not only throws on the financial position of a firm but also serves as astepping stone to remedial measures for Emami Limited.This project helps to identify and give suggestion the area of weaker position of business transaction in EMAMI LTD .

CHAPTER - IINTRODUCTION 1.1 COMPANY PROFILE1.1.1 HISTORY OF THE COMPANY : Emami, which started as a cosmetics manufacturing company in the year 1974, advancingwith increased momentum has expanded into Emami Group of Companies of today. Eventhough cosmetics and toiletries continue to be the main thrust area, the other companies in theEmami Group are performing equally brilliantly. From health care institution to medicines,from real estate to retailing and, from paper to writing instruments, Hospital, Emami iscreating one success story after another. 1.1.2 Vision and Mission :Vision A company, which with the help of nature, caters to the consumers needs and their inner cravings for dreams of better life, in the fields of personal and health care, both in India andthroughout the world. Mission To sharpen consumer insights to understand and meet their needs with valueaddeddifferentiated products which are safe, effective & fast.8 To integrate our dealers, distributors, retailers and suppliers into the Emami family,thereby strengthening their ties with the company. To recruit, develop and motivate the best talents in the country and provide them withan environment which is demanding and challenging.

 To strengthen and foster in the employees, strong emotive feelings of oneness with thecompany. To uphold the principals of corporate governance and move towardsdecentralization to generate long term maximum returns for all stake owners. To contribute whole heartedly towards the environment and society and to emerge as amodel corporate citizen.

1.1.3 Values: Respect for people: We treat individuals with dignity and respect. We continue to be honest, open and ethical inall our interactions with dealers, distributors, retailers, suppliers, shareholders, customers andwith each other. Consumers delight :We maximizing that our business can succeed only if we can create and keep customers. Wemanufacture products that offer value for money, which are differentiated and deliver safe,effective and fast solutions. Integrity: People at every level are expected to adhere to the highest standards of business ethics.Anything less is unacceptable. Our ethical conduct transcends beyond policies. It is ingrainedin our corporate tradition that is transferred from one generation of employees to another. Wecomply with applicable government laws and regulations in the geographies where we are present. Quality: 9 We are committed to excellence in everything we do. Our credo: There is always a better way- We must think creatively, continuously innovate and pursue new ideas to

achieveuncommon solutions to common problems. Teamwork: Teamwork is the cornerstone of our business that helps deliver value to our customers. Wework together across titles, job responsibilities and organizational structure to shareknowledge and expertise. The right environment: It is our responsibility to create an environment that helps employees realize their full potential. Leadership: We recognize that we can be a leading company through active delegation and by creatingleaders at every level of the organisation. Community development: We continue to contribute to the communities in which we operate and address social issuesresponsibly. Our products are safe to make and use. We conserve natural resources andcontinue to invest in a better environment. Transparency and shareholder value: We are committed to be driven by our conscience and regulatory standards, to deliver valueto our shareholders, commensurate with our management and financial strength

1.1.4 Profile of the Organization: Emami Limited is in the business of manufacturing personal, beauty and health care products.The company manufactures herbal and Ayurvedic products through the use of modernscientific laboratory practices. This blend enables the company to manufacture products thatare mild, safe and effective. The company's product basket comprises over 20 products, themajor being Boroplus Antiseptic Cream, Navratna Oil, Boroplus Prickly Heat Powder, SonaChandi Chyawanprash and Amritprash, Mentho Plus Pain Balm, Fast Relief, Golden BeautyTalc, Madhuri Range of Products and others. The products are sold across all states in Indiaand in countries like Nepal, Sri Lanka, the Gulf countries, Europe, Africa and the MiddleEast, among others. 1.1.5 Manufacturing: Emamis products are manufactured in Kolkata, Puducherry, Guwahati and Mumbai.The company commenced operations at its fully automated manufacturing unit in

Amingaon,Guwahati in 2003-04.12 1.1.6 Network: The company's dispersed manufacturing facilities are complemented with a strong productthroughput, facilitated by a robust distribution network of over 2100 direct distributors and3.9 lakhs retail outlets. With a view to reach its products deeper into the country, direct sellinghas been extended to rural villages. As a result, rural sales increased substantially in 2003-04compared to the previous year. Emami is headquartered in Kolkata. The company's branchoffices are located across 27 cities in India. 1.1.7 Promoters: Emami is promoted by Shri R.S.Agarwal and Shri R.S.Goenka, Kolkata based industrialists.Emamis shares are listed on the Calcutta Stock Exchange, Bombay Stock Exchange and National Stock Exchange. 1.1.8 IT BACKBONE INTEGRATED INFORMATION TECHNOLOGY An efficient information technology network is necessary for a dynamic FMCG companywhere the market demands change faster than perhaps in any other industry. At Emami, theintegration of information technology transpires on a continuous basis. This ensures that thecompany responds to changing market place realities faster than its competitors and that its products reach retail shelves just when they are required. In turn, this enhances brand loyaltyand retains customers.A successful implementation of the ERP in the offices, factories and depots increased thecompanys overall efficiency. It enabled single-point data entry and multi-point informationaccess. The status of raw materials, packing materials, finished goods, indents and salesinformation gets constantly updated through ERP. This has become possible due to the Pointto Point Leased Line connections.13 As Emami is growing rapidly, the augmented business requirement calls for a Standard ERPsystem. This would provide Real-Time information to the Management, which wouldfacilitate to take quick decision. The information could also be available through email andMobile phones. So Emami would be implementing a Standard ERP system very shortly. SalesForecasting, Demand Planning, Process Management, Supply Chain Management, Primaryand Secondary Sales, I-Supplier, I-Expenses, I-Sales will be an integral part of the StandardERP system.Emami adopts the latest Technology for IT and communication system.

Vision: To contribute profitably to the growth of the company, representing it with pride across theglobe, with a single-minded focus and dedication to establishing and building global

brands. Global Presence of Emami: Over the last 7 years, Emamis presence has increased from merely few countries in CIS toover 50 countries spanning across SAARC, Gulf, CIS, North America, Europe and Africa.The company now is shifting its focus from broad basing (entering new markets) to increasingthe number of successful products in existing markets to improve upon its operationalefficiency. Product Portfolio : The Product Portfolio can be broadly divided into three Umbrellas. Emami The products under this Umbrella Brand promise care for the skin. The rangeconsists of Skin care, Hair care, Dental care & Mens care products. Himani Products under this Umbrella Brand promise cure. The range consists of OTC medicines. Ayucare A range of new Life style enhancing products comprising of Singleingredient herbs, food supplements, Neem & Aloe Vera range, Ayurvedic tea, Massageoil, Essential oils & blends. Emma This range comprises of customized products as per the specific needs put-up by the consumer. Typically these are all mass marketed products sold to priceconscious buyers. The range presently consists of Creams, Lotions & Shampoos. Future Strategy: Companys business plan for International market comprises of thefollowing key factors. Investment in potential markets for key Brands leading to Higher Possibility of Returns in terms of Turnover and Market Development in the long run. Adding new products for various key markets. Customization of product offerings under the same brand clubbing of familiar products

under the same brand. Manufacturing facilities in High Tariff markets to make prices more consumer-friendly.15 Acquisition In certain markets, company may consider buying existing brandsinstead of trying to build one.Brand Building Activities: Company spends on Media (TV and/or Press) Advertising in selectcountries in CIS, SAARC, Indo-China and USA, Australia & UK. All the markets aresupported with POPs, Displays and other promotional material as per the requirement. 1.2 INTRODUCTION TO THE STUDY Financial Management is that managerial activity which is concerned with the planningand controlling of the firms financial resources. Though it was a branch of economics till1890 as a separate or discipline it is of recent origin.Financial Management is concerned with the duties of the finance manager in a businessfirm. He performs such varied tasks as budgeting, financial forecasting, cash management,credit administration, investment analysis and funds procurement. The recent trend towardsglobalization of business activity has created new demands and opportunities in managerialfinance.Financial statements are prepared and presented for the external users of accountinginformation. As these statements are used by investors and financial analysts to examine thefirms performance in order to make investment decisions, they should be prepared verycarefully and contain as much investment decisions, they should be prepared very carefullyand contain as much information as possible. Preparation of the financial statement is the16 responsibility of top management. The financial statements are generally prepared from theaccounting records maintained by the firm.Financial performance is an important aspect which influences the long term stability, profitability and liquidity of an organization. Usually, financial ratios are said to be the parameters of the financial performance. The Evaluation of financial performance had beentaken up for the study with EMAMI LIMITED as the project.Analysis of Financial performances are of greater assistance in locating the weak spots atthe Emami limited eventhough the overall performance may be satisfactory. This further helpsin Financial forecasting and planning. Communicate the strength and financial standing of the Emami limited. For effective control of business.

CHAPTER IIREVIEW OF LITERATURE2.1 Financial statements Analysis: The financial statements provide some extremely useful information to the extent thatthe balance sheet mirrors the financial position on a particular date in terms of the structure of assets, liabilities and owners equity, and so on and the profit an loss account shows the resultsof operations during a certain period of time in terms of the revenues obtained and the costincurred during the year. Thus, the financial statements provide a summarized view of thefinancial position and operations of a firm. Therefore, much an be learnt about a firm from acareful examination of its financial statements as invaluable documents performance reports.The analysis of financial statements is thus, an important aid to financial analysis.The focus of financial analysis is on key figures in the financial statements and thesignificant relationship that exists between them. The analysis of financial statements is a process of evaluating the relationship between component parts of financial statements toobtain a better understanding of the firms position and performance. The first task of thefinancial analyst is to select the information relevant to the decision under consideration fromthe total information contained in the financial statements. The second step is to arrange the17 information in a way to highlight significant relationships. The final step is interpretation anddrawing of inferences and conclusion. In brief, the financial analysis is the process of selection, relation and evaluation. 2.2 Ratio Analysis: Ratio analysis is a widely-use tool of financial analysis. It can be used to compare the risk and return relationships of firms of different sizes. It is defined as the systematic use of ratioto interpret the financial statements so that the strengths and weakness of a firm as well as itshistorical performance and current financial condition can be determined. The term ratiorefers to the numerical or quantitative relationship between two items and variables. Theseratios are expressed as (i) percentages, (ii) fraction and (iii) proportion of numbers. Thesealternative methods of expressing items which are related to each other are, for purposes of financial analysis, referred to as ratio analysis. It should be noted that computing the ratiosdoes not add any information not already inherent in the above figures of profits and sales.What the ratio do is that they reveal the relationship in a more meaningful way so as to enableequity investors, management and lenders make better

The exclusion of expenses by their very nature are not available to pay off current debts. Theymerely reduce the amount of cash required in one period because of payment in a prior period. C. Cash Ratio: This ratio is also known as cash position ratio or super quick ratio. It is a variation of quick ratio. This ratio establishes the relationship absolute liquid asserts and current liabilities.Absolute liquid assets are cash in hand, bank balance and readily marketable securities. Boththe debtors and bills receivable are excluded from liquid assets as there is always anuncertainty with respect to their realization. In other words, liquid assets minus debtors and bills receivable are absolute liquid assets. In this form of formula:Cash in hand & at bank + Marketable securitiesCash Ratio = ________________________________________ Current liabilities 2.3.2 Activity Ratios: Activity ratios are concerned with measuring the efficiency in asset management. Theseratios are also called efficiency ratios or asset utilization ratios. The efficiency with which theassets are used would be reflected in the speed and rapidity with which assets are convertedinto sakes. The greater is the rte of turnover or conversion, the more efficient is the utilizationof asses, other thongs being equal. For this reason, such ratios are designed as turnover ratios.Turnover is the primary mode for measuring the extent of efficient employment of assets byrelating the assets to sales. An activity ratio may, therefore, be defined as a test of therelationship between sales and the various assets of a firm. A. Average collection period: In order t know the rate at which cash is generated by turnover of receivables, the debtorsturnover ratio is supplemented by another ratio viz., average collection period. The averagecollection period states unambiguously the number of days average credit sales tied up in the20 amount owed by the buyers. The ratio indicates the extent to which the debts have beencollected in time. In other words, it gives the average collection period. Prompt collection of book debts will release such funds which may, then, put to some other use. The ratio may becalculate by360 daysAverage collection period = _____________________ Debtors turnover ratio B. Inventory Turnover Ratio:

This ratio indicates the number of times inventory is replaced during the year. It measuresthe relationship between the cost of goods sold and the inventory level. The ratio can becomputed inCost of goods soldInventory Turnover Ratio = ___________________ Average InventoryThe average inventory figure may be of two types. In the first place, it may be the monthlyinventory average. The monthly average can be found by adding the opening inventory of each month from, in case of the accounting year being a calendar year, January throughJanuary an dividing the total by thirteen. If the firms accounting year is other than a calendar year, say a financial year, (April and March), the average level of inventory can be computed by adding the opening inventory of each month from April through April and dividing thetotal by thirteen. This approach has the advantage of being free from bias as it smoothens outthe fluctuations in inventory level at different periods. This is particularly true of firms inseasonal industries. However, a serious limitation of this approach is that detailed month-wiseinformation may present practical problems of collection for the analyst. Therefore, averageinventory may be obtained by using another basis, namely, the average of the openinginventory may be obtained by using another basis, namely the average of the openinginventory and the closing inventory. C. Working Capital Turnover Ratio: 21 This ratio, should the number of times the working capital results in sales. In otherwords,this ratio indicates the efficiency or otherwise in the utilization of short tern funds in makingsales. Working capital means the excess of current over the current liabilities. In fact, in theshort run, it is the current liabilities which play a major role. A careful handling of the shortterm assets and funds will mean a reduction in the amount of capital employed, therebyimproving turnover. The following formula is used to measure this ratio:SalesWorking capital turnover ratio = _____________________ Net Working Capital D. Fixed Assets Turnover Ratio: As the organisation employs capital on fixed assets for the purpose of equipping itself withthe required manufacturing facilities to produce goods and services which are saleable to thecustomers to earn revenue, it is necessary to measure the degree of success achieved in this bearing. This ratio expresses the relationship between cost of goods sold or sales and fixedassets. The following is used for measurement of the ratio.SalesFixed Assets Turnover =________________ Net fixed assetsIn computing fixed assets turnover ratio, fixed assets are generally taken at written downvalue at the end of the year. However, there is no rigidity about it. It may be taken at theoriginal cost or at the present market value depending on the object of comparison. In fact, theratio will have automatic improvement if the written down value is used.It would be better if the ratio is worked out on the basis of the original cost of fixed assets.We will take fixed assets at cost less depreciation while working this ratio. 2.3.3 Financial Leverage (Gearing) Ratios The long-term lenders/creditors would be judge the soundness of a firm on the basis of

thelong-term financial strength measured in terms of its ability to pay the interest regularly aswell as repay the instalment of the principal on due dates or in one lump sum at the time of 22 maturity. The long term solvency of a firm an be examined by using leverage or capitalstructure ratios. The leverage or capital structure ratios may be defined as financial ratioswhich throw light on the long-term solvency of a firm as reflected in its ability to assure thelong-term lenders with regard to (i) periodic payment of interest during the period of the loanand (ii) repayment of principal on maturity or in predetermined instalments at due dates. A. Proprietary Ratio: This ratio is also known as Owners fund ratio (or) Shareholders equity ratio (or) Equityratio (or) Net worth ratio. This ratio establishes the relationship between the proprietorsfunds and total tangible assets. The formula for this ratio may be written as follows.Proprietors fundsProprietary Ratio = _____________________

2.4 Comparative Balance sheet: Comparative balance sheets as on two or more different dates can be used for comparingassets, liabilities, capital and finding out any increase or decrease in those items. In the wordsof Foulke comparative balance sheet analysis is the study of the trend of the same items,group of items and computed items in two or more balance sheets of the same businessenterprise on different dates. Such analysis often yields valuable information as regards progress of business concern. While the single balance sheet represent balances of accountsdrawn at the end of an accounting period, the comparative balance sheet represent not nearlythe balance of accounts drawn on two different dates, but also the extent of their increase or decrease between these two dates. The single balance sheet focuses on the financial status of the concern as on a particular date, the comparative balance sheet focuses on the changes thathave taken place in one accounting period. The changes are the direct outcome of operationalactivities, conversion of assets, liability and capital form into others as well as a variousinteractions among assets, liability and capital. 2.5 Tips to improve your financial health . Author: Bill HudleySpend less money, or save more money or do both. If the annual income does nothingmore than remain constant, your financial condition will improve.The above statement may sound come across as flippant, but its a fact of life, regardless. Needless to say we all have different personalities and different responses to needs and desiresin life.A

very important yardstick, in my view, is the growth rate of personal assets. If you sit downto all of the savings accounts, investment accounts and properly values and the total value isgreater than the same time of the previous year, it stands to improve that the financial healthin tact and possibly improved. 2.6 Steps to Improve Financial Performance Author: Terry Peltes28 Given the challenges facing physicians, successful practices must take proactive steps tocombat negative trends and improve their overall financial performance.To improve practice operations, processes can be streamlined to reduce costs; productivityimprovements can be implemented by physicians and employees to increase revenue; areporting structure can be created that allows for better decision making by physicians andemployees; and a rewards system can be implemented to recognize hardworking employees.To determine how you can improve your medical practice's performance, consider thefollowing management procedures. 1) Internal Cost Reduction Strategies Cost reduction strategies focus on reducing the internal costs generated by medicalservices provided to the marketplace. 2) External Cost Reduction Strategies These strategies include the cost of services purchased from outside consultants or vendors. 3) Asset and Credit Management Strategies These strategies ensure that you are getting the most value from the resources invested inyour practice. 4) Personnel Resources When managed properly, personnel costs and productivity can have a substantial impacton practice profitability. 5) Management Reporting 29 The use of timely, relevant, properly formatted reports to manage your practice cannot be overstated. This is a crucial link between setting financial and operational goals andmanaging the practice to achieve them. 6) Revenue Enhancement Physicians can improve their financial performance by improving their ability to negotiatefavorable managed care contracts and reducing practice expenses as a percentage

of revenue. 2.7Excellence in Financial Management Author: Matt H. EvansRatio analysis can be used to determine the time required to pay accounts payableinvoices.If the average number of days is close to the average credit terms, this may indicateaggressive working capital management; i.e. using spontaneous sources of financing.However, if the number of days is well beyond the average credit terms, this could indicatedifficulty in making payments to creditors. 2.8 Analyze Investments Quickly With Ratios Author: Jonas ElmerrajiThe information you need to calculate ratios is easy to come by: Every single number or figure you need can be found in a company's financial statements. Once you have the rawdata, you can plug in right into your financial analysis and put those numbers to work for you.Everyone wants an edge in investing but one of the best tools out there frequently isfrequently misunderstood and avoided by new investors. When you understand what ratiostell you, as well as where to find all the information you need to compute them, there's noreason why you shouldn't be able to make the numbers work in your favor.

DATA ANALYSIS AND INTERPRETATION 5.1 FINANCIAL PERFORMANCE EVALUATION USING RATIO ANALYSIS Ratio analysis is a powerful tool of financial analysis. A ratio is defined as The IndicatedQuotient of Two Mathematical Expressions and as The Relationship between Two or MoreThings. In financial analysis, a ratio is used as a benchmark for evaluating the financial position and performance of firm. The absolute accounting figures reported in the financialstatement do not provide a meaningful understanding of the performance and financial position of a firm. The relationship between two accounting figures, expressedmathematically is known as a financial ratio. Ratios help to summaries large quantities of financial data and to make qualitative about the firms financial performance.33 The point to note is that a ratio reflecting a quantitative relationship helps to form aqualitative judgment. Such is the nature of all financial ratios. 5.1.1 Significance of Using Ratios

:The significance of a ratio can only truly be appreciated when:1.It is compared with other ratios in the same set of financial statements.2.It is compared with the same ratio in previous financial statements (trend analysis).3.It is compared with a standard of performance (industry average). Such a standardmay be either the ratio which represents the typical performance of the trade or industry, or the ratio which represents the target set by management as desirable for the business. 5.2 Types of Ratios 5.2.1 Liquidity Ratios Liquidity refers to the ability of a firm to meet its short-term financial obligationswhen and as they fall due. The main concern of liquidity ratio is to measure the ability of the firms to meet their shortterm maturing obligations. Failure to do this will result in the total failure of the business, as it would be forced into liquidation. A. Current Ratio The Current Ratio expresses the relationship between the firms current assets and itscurrent liabilities. Current assets normally include cash, marketable securities, accountsreceivable and inventories. Current liabilities consist of accounts payable, short term notes payable, short-term loans, current maturities of long term debt, accrued income taxes andother accrued expenses (wages). Current assets Current Ratio = ________________ Current liabilities Significance: 34 It is generally accepted that current assets should be 2 times the current liabilities. In asound business, a current ratio of 2:1 is considered an ideal one. If current ratio is lower than2:1, the short term solvency of the firm is considered doubtful and it shows that the firm is notin a position to meet its current liabilities in times and when they are due to mature. A higher current ratio is considered to be an indication that of the firm is liquid and can meet its shortterm liabilities on maturity. Higher current ratio represents a cushion to short-term creditors,the higher the current ratio, the greater the margin of safety to the creditors.

Interpretation: As a conventional rule, a current ratio of 2:1 is considered satisfactory. This rule is base on the logic that in a worse situation even if the value of current assets becomes half, thefirm will be able to meet its obligation. The current ratio represents the margin of safety for creditors. The current ratio has been decreasing year after year which shows decreasingworking capital.From the above statement the fact is depicted that the liquidity position of the Emamilimited is satisfactory because all the five years current ratio is not below the standard ratio2:1. Chart no.: 5.1 CURRENT RATIO 35

The investment has increased by Rs.4700.27 lakhs, which indicates an outflow of fund anda timely investment by the company.The overall financial position of the company for the year (2004-2005) is satisfactory. Table: 5.20 Comparative Balance Sheet as on 31

st March 2005 2006Particulars31 st March2005 Rs. in lakhs 31 st March2006 Rs. in lakhs Change inAbsoluteFigure Rs. in lakhs PercentageIncrease orDecreaseFixed Assets (A) 21863.9920245.48(1618.51)7.40 Investment ( B ) 5391.058709.803318.7561.56 Current Assets : InventoriesSundry DebtorsCash and Bank Balance3674.583524.7934.433662.463667.5282.12(12.12)142.7347.690.334.05138.5174

Loans and Advances2650.844537.371886.5371.17 Total current Assets ( C ) 9884.6411949.472064.8320.89 Total Assets ( A+B+C ) 37139.6840904.753765.0710.14 Shareholders Funds :

Share CapitalReserves and SurplusDeferred Tax1223.0030460.74480.001223.0032298.63261.00-1837.89(219)-6.0345.63 Total Shareholders Funds(A) 32163.7433782.631618.895.03 Loan Funds : Secured loansUnsecured loans3375.8298.363124.0892.59(251.74)(5.77)7.465.87 Total Loan Funds ( B ) 3474.183216.67(257.51)7.41 Current Liabilities andProvision( C) 1501.763905.452403.69160.06 Total Liabilities (A+B+C) 37139.6840904.753765.0710.14 Interpretation: The comparative balance sheet of the company reveals during 2006, that there has been a decrease in the fixed assets of Rs.(1618.51) lakhs, which indicates sale of fixed assetsand an inflow of cash. The long term loan has reduced by Rs.(257.51) lakhs, which indicatesthe repayment of loan. This fact depicts that the loan is relayed through the cash received bysale of fixed assets.The current asset has increased by Rs.2064.83 lakhs which indicate a firms better credit policy. The current liability has also increased by Rs.2403.69 lakhs, which indicates that the payment of liabilities is not made within the stipulated period.The investment has increased by Rs.3318.75 lakhs as such the investment of the companyon the shares in its subsidiary company has increased, which indicates on outflow of cash.75

The overall financial position of the company for the year (2005-2006) is satisfactory. CHAPTER VIFINDINGS OF THE STUDY 1)The current ratio is above 2 in all the five years. The same level of current assets andcurrent liabilities may be maintained since the current assets are less profitable, whencompared to fixed assets.2)The liquid ratio is decreasing year after year. Though the ratio is above 1 in all the fiveyears, it is preferable to improve upon the situation. This may be due to the fact thatthe stock is major composition of current assets, which excludes liquid assets. Thefirm should try to clear the stocks.3)The cash ratio is decreasing year after

year. So it shows that the cash position is notutilized

This study need to be interpreted carefully. They can provide clues to the companys performance or financial situation. But on their own, they cannot show whether performanceis good or bad. It requires some quantitative information for an informed analysis to be made. 8.2 SCOPE FOR FURTHER STUDY This study covers the financial performance of the company and activity engaged inmanufacturing cables.Financial performance covers the aspects like liquidity, leverage, activity, and profitabilityof EMAMI LIMITED.This study further compares the financial statement to know the relative financial positionof the company.Finally, a trend analysis also is carried out to evaluate the trends in financial statements of the company.80 BIBLOGRAPHYBOOKS M Y Khan and P K Jain Financial Management Fourth Edition-2006,Tata McGraw-Hill Publishing Company Limited, New Delhi. A. Murthy Management Accounting First Edition-2000, S. Viswanathan (Printers&Publishers), PVT., LTD. S.M. Maheswari Management Accounting, Sultan Chand & Sons EducationalPublishers, New Delhi.81 WEBSITES www.encyclopedia.comHYPERLINK "http://www.emamigroup.com/"www.emamigroup.com 82

of 82

Leave a Comment

You must be logged in to leave a comment. Submit Characters: 400

Jegatheesan S Kasimani plese send me to jegathsn@gmail.com 03 / 05 / 2012

Vartika Goel hi i need this project report.... can u send me plsss thisv to my id- vartika31jan@gmail.com 07 / 31 / 2011

Sutha Haris hi... i need this report, can you send this to my id- suthal48@gmail.com 07 / 13 / 2011

Pankaj Kumar

hi can u plz send me this project report my mail id is shrawanpareek@gmail.com 06 / 08 / 2011

hrishilina Hi m doing MBA. I m going to do a project at emami so when i searched here I found this document which is very much helpful for me so if you don't mind please send me the link of this document to my email id hrishikeshbaishya87@gmail.com or baishya.hrishikesh@ibibo.com 11 / 23 / 2010

bookabdi1 abdidufera 03 / 18 / 2010

deadlyrahul hii can u plz give me this report my mail id is rbidasaria@hotmail.com 02 / 16 / 2010

pradipanand87 hii .. can u plz send me diz proj to ma mail id (pradipanand87@gmail.com) 02 / 04 / 2010 Show More

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

7,066 Reads Info and Rating

Uploaded by SheerazAnwerSaeed Follow

Search TIP Press Ctrl-F to quickly search anywhere in the document.

Sections
1.1.2 Vision and Mission : 1.1.3 : 1.1.4 : 1.1.5 : 1.1.6 :

1.1.7 : 1.1.8 1.1.9 1.1.10 1.2 2.1 : 2.2 : 2.3.1 : 2.3.2 : 2.3.3 () 2.3.4 2.4 : 2.5 : 2.6 2.7 2.8 3.1 : 3.2 : 4.1 : 4.2 : 4.3 : 4.4 : 4.5 : 5.1 5.2.1 5.2.2 :

5.2.3 () 5.2.4 5.3 : 7.1 7.2 8.1 8.2

More from This User Related Documents

80 p. Presentation (Mc070402348)

70 p. Mrk_Fall_2009_FINI619_1_MC070402348

161 p. Mrk_Spring_2009_FINI619_1_MC070404494 Next

Upload a Document Search Documents Follow Us! ./ ./ ./ 101 /

Copyright 2012 Scribd Inc. Language: English