Annual Report Emami

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<p>STUDY ON FINANCIAL REPORT OF EMAMI AND CALCULATION OF RATIOS</p> <p>CONTENTSAcknowledgement Synopsis CHAPTER 1: Introduction Organizational Profile CHAPTER 2: Data analysis P &amp; L Account Balance Sheet CHAPTER 3: Data Interpretation Ratio Calculation Of Ratios Formulas CHAPTER 4: SWOT Analysis CHAPTER 7: Conclusion CHAPTER 8: Bibliography 30 29 1 21 23 18 13 14 16 4 6 2 3</p> <p>ACKNOWLEDGEMENT1|Page</p> <p>STUDY ON FINANCIAL REPORT OF EMAMI AND CALCULATION OF RATIOS</p> <p>I wish to express my sincere gratitude to Ms. Chandrika, Faculty, Management Department, International School of Business and Design, Mysore for providing me an opportunity and support to do my project work titled STUDY ON FINANCIAL REPORT OF EMAMI AND CALCULATION OF RATIOS</p> <p>My special thanks to Professor B.S Shankar, HOD, Management Department, ISBD, Mysore for giving his valuable inputs on this project.</p> <p>Last but not the least my beloved Parents and Family members for their support, strength and help in completing this project.</p> <p>SIGNATURE Ms. Chandrika Faculty, ISBD Mysore</p> <p>SYNOPSIS</p> <p>2|Page</p> <p>STUDY ON FINANCIAL REPORT OF EMAMI AND CALCULATION OF RATIOSFinancial Report analysis is a useful tool to dig out valuable information on an organizations financial health. Ratios are widely used tools of financial analysis, and are the best indicators to understand your organization and managerial arsenal.</p> <p>3|Page</p> <p>STUDY ON FINANCIAL REPORT OF EMAMI AND CALCULATION OF RATIOS</p> <p>Chapter 1 INTRODUCTION</p> <p>About the Project: This project deals with collecting the annual report of EMAMI and calculating different ratios.</p> <p>4|Page</p> <p>STUDY ON FINANCIAL REPORT OF EMAMI AND CALCULATION OF RATIOS</p> <p>Organizational Profile: Emami Group, a conglomerate born out of Bengal has a pan India presence through its battery of brands and business initiatives that blossomed under the parentage of Mr R S Agarwal and Mr R S Goenka since 1974. With an aggregate group turnover of about Rs 2200 crore the group has business interests in FMCG (fast moving consumer goods), paper and news print, writing instruments, edible oil and cultivation, bio-diesel, hospitals, contemporary art, pharmacy, cement, real estate and retail. The Groups fountain of strength are its ingrained value system, innovativeness and an over 20,000 passionate and dedicated staff, engaged in knowledge sharing.</p> <p>5|Page</p> <p>STUDY ON FINANCIAL REPORT OF EMAMI AND CALCULATION OF RATIOSEmami Limited, the flagship company of the Group, is a coveted Rs 755 crore business entity , a leading player in the personal and healthcare consumer products industry in India engaged in manufacturing and marketing of health, beauty and personal care products that are based entirely on ayurvedic formulation. Emami Limited has over 30 brands under its portfolio. The focus is on providing the consumers with innovative products which are capable of meeting their multiple needs and add value by enhancing the quality of day-to-day life. By repeatedly outperforming the industry standard, Emami Ltd has maintained a CAGR of 25% over the last few years. Understanding the human needs and fulfilling them by dint of technical research is a positive feature of Emami. This is being made possible by Himani Ayurveda Science Foundation (HASF) that generates the very best of ayurvedic formulations. The foundations unique range of healthcare products aptly caters to consumer needs. The world class quality control methods and processes maintained by HASF ensure optimum utility of each ingredient. The foundation is completely engaged in constant innovation and pharmaceutical enhancements. The power brands of the company are Boroplus and Navratna. Boroplus brand is the market leader in the antiseptic cream segment; the Navratna Oil is also in the pole position in the cool oil segment. Fair and Handsome is the pioneer in the fairness cream for men segment. Emamis products in different categories like cool oil, antiseptic cream and fairness cream for men have carved a niche for themselves in their respective segments. Today the Navratna Brand is worth Rs. 300 crore followed by the Boroplus Brand standing at Rs. 175 crore and Fair and Handsome standing at Rs. 80 crore. Sona Chandi Chyawanprash, Mentho Plus and Fast Relief are also doing well in their respective categories. Hairlife (crme herbal hair pack) and Malai Kesar Cold Cream are also major players. Brand extensions have helped Emami consolidate its position in the market and also cater to varied consumer needs. Emami has entered the glycerine soap category with Emami Pure Skin, petroleum jelly category with Vasocare and shampoo category with Emami 5 in 1 shampoo. Emami has also launched a range of baby products under the brand name Emami Healthy and Fair baby range which includes a soap, talc and oil. Emami Limited with an investment of Rs 700 crore has acquired major stake in Zandu Pharmaceuticals Works Ltd on the basis of huge business synergy between Zandu and Emami. Post the acquisition of Zandu Pharmaceuticals a century old household name in India, some of its prominent brands like Zandu Balm, Zandu Chyawanprash, Zandu Kesri Jeevan, Zandu Pancharishta, Sudarshan and Nityam Churna are also under Emamis basket of brands. The FMCG business of Zandu will be demerged into Emami. This will help consolidation of FMCG business of Emami and Zandu into one entity. Emami has successfully established its brands through strong celebrity endorsements. It is the only corporate entity in the country to have both Amitabh Bachchan and Shah Rukh Khan as6|Page</p> <p>STUDY ON FINANCIAL REPORT OF EMAMI AND CALCULATION OF RATIOSbrand endorsers for the same brand, Navratna. The concept of brand endorsement by celebrities has been successfully experimented in case of most of its brand launches. Besides Amitabh and Shah Rukh, other celebrity endorsers of Emamis brand include Madhuri Dixit, Kareena Kapoor, Govinda, Sourav Ganguly, Chiranjeevi, Surya and Upendra among others. Emami has also taken up a major revamping project to enhance the sales and distribution, human resources development and logistics with the globally renowned professional advisory services firm, Ernst and Young. Project Navodaya, as it is truly called, will help Emami fast track its top line and bottom line growth and build a robust platform for growth initiatives. Emami covers all the states with 29 depots across India. Its supply-chain management assumes immense significance which was aptly reflected through remarkable expansion in dealerdistribution network, outlets and manpower. The domestic sales and distribution division directly covers 4.15 lac outlets all across the country along with an additional 2100 modern retail outlets. Emamis products reach out to nearly 30 lac retail outlets across India through 2500 distributors. Emamis quality products not only have a pan India presence, but also have a deep imprint in over 60 countries across the world including GCC, UK, Sri Lanka, Bangladesh, Nepal, African and the CIS countries. Emami Limited has two subsidiary companies Emami UK Limited in London and Emami International FZE in UAE. The company has 6 ultra modern manufacturing facilities at Kolkata (West Bengal), Abhoypur and Amingaon (Assam), Pondicherry, Uttaranchal and Baddi (Himachal Pradesh). It has adopted the Total Quality Management system and all its manufacturing facilities have received cGMP and ISO 9001:2000 certifications. Emami Ltd has recently been conferred the Most Enterprising Company of the Year by IIPM (Indian Institute of Planning and Management) and The Sunday Indian publication of the Planman Media Group. In 2007, the company received the Institute of Cost and Works Accountants of India (ICWAI) Award for Excellence in Cost Management.</p> <p>COMPANIES UNDER EMAMI GROUP:EMAMI PAPER MILLS LIMITED EMAMI CHISEL ART CRI LIMITED SOUTH CITY PROJECTS (KOLKATA) LTD ADVANCED MEDICARE &amp; RESEARCH INSTITUTE LTD (AMRI) FRANK ROSS LIMITED EMAMI REALTY LIMITED EMAMI RETAIL PVT LIMITED (STARMARK) 7|Page</p> <p>STUDY ON FINANCIAL REPORT OF EMAMI AND CALCULATION OF RATIOSEMAMI BIOTECH LIMITED EMAMI CEMENT LTD</p> <p>MANAGEMENTMANAGEMENT - EMAMI NAME R S AGARWAL R S GOENKA K N MEMANI S N JALAN VAIDYA S CHATURVEDI A V AGARWAL SUSHIL KR GOENKA VIREN J SHAH S K TODI K K KHEMKA MOHAN GOENKA H V AGARWAL DESIGNATION CHAIRMAN DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR MANAGING DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR</p> <p>REGISTERED OFFICE:Emami Tower 687, Anandapur, EM Bypass Kolkata 700 107, West Bengal Phone: +91-33-6613 6264 Fax: +91-33-6613 6600 E-mail:</p> <p>COMPETITORSCompetitors HUL Last Price 237.25 Market Cap. (Rs. cr.) 51,754.71 Sales Turnover 20,601.56 2,496.45 Net Profit Total Assets 2,483.46 8|Page</p> <p>STUDY ON FINANCIAL REPORT OF EMAMI AND CALCULATION OF RATIOSDabur India Colgate Godrej Consumer Marico P and G Godrej Ind Gillette India Emami Jyothy Labs 165.7 723.45 238.05 102.05 1,761.55 150.5 1,342.95 521.6 160.3 14,345.98 9,838.40 7,336.46 6,217.71 5,718.12 4,780.25 4,376.03 3,763.09 1,163.28 2,417.91 1,770.82 1,088.01 1,921.85 772.81 880.97 661.51 722.35 350.85 373.56 290.22 161.55 142.12 178.85 19.33 113.13 87.52 40.88 877.17 220.98 599.8 676.21 440.02 1,628.10 490.89 736.1 352.51</p> <p>BRANDS:Emami Limited is one of the major health and personal care FMCG companies in India with its brand presence globally. Leveraged by celebrity endorsements, Emami believes in building categories by meeting unfulfilled consumer needs. Emami Limited has over 25 brands under its portfolio. The focus is on providing the consumers with innovative products which are capable of meeting their multiple needs and add value by enhancing the quality of life. Through innovative and power brands, Emami touches the lives of all consumers, spanning across various income groups in both urban and rural India. Emamis success story is not only weaved around the holistic healing system of ayurveda, but also in its product innovation, dynamic and focused leadership, a strong supply-chain management and unwavering commitment to partners and stakeholders. The popular brands like Boroplus, Navratna, Fast Relief and Fair and Handsome are an outcome of deeper understanding of Indian consumers. A brand is a commitment to consumers and in Emami, its brands are a synthesis of innovation, cutting-edge technology; product efficacy and intelligent pricing that have made them the peoples choice</p> <p>9|Page</p> <p>STUDY ON FINANCIAL REPORT OF EMAMI AND CALCULATION OF RATIOSBRANDS Boroplus Antiseptic Cream and Talc Navratna Oil Fair and Handsome Navratna Cool Talc Sona Chandi Chyawanprash Zandu Balm Himani Fast Relief Mentho plus Balm Emami Healthy &amp; Fair Emami Malai Kesar Cold Cream Lalima Sardi Ja Zandu Pancharishta Emami Pure Skin Glycerine Bar Emami Vasocare Petroleum Jelly Beauty Secrets by Madhuri AMBESSADORS Kareena Kapoor Amitabh Bachchan SRK SRK SRK Sachin Tendulkar Amitabh Bachchan Madhuri Dixit</p> <p>Madhuri Dixit</p> <p>CORPORATE INFORMATION:10 | P a g e</p> <p>STUDY ON FINANCIAL REPORT OF EMAMI AND CALCULATION OF RATIOS </p> <p>Turnover increased 29.1% from Rs. 578.9 cr in 2007-08 to Rs. 747.5 cr. Exports grew 60% from Rs. 63.5 cr in 2007-08 to Rs. 101.6 cr, the slowdown notwithstanding. EBIDTA grew 36.3% to Rs. 135.2 cr in 2008-09. EBIDTA margin strengthened from 17.1% in 2007-08 to 18.1%. Profit after tax at Rs. 91.9 cr increased marginally, despite higher incidence of interest on acquisition. Acquired a controlling stake of 68.9% in The Zandu Pharmaceutical Works Limited in November 2008. Consolidated FMCG and realty businesses of Emami and Zandu in separate listed entities through de-merger under a court sanctioned scheme of arrangement. Ranked 179th among BT-500 most valuable companies of India in private sector as per a survey conducted by Business Today in November 2009 Raised equity of Rs. 310 cr through QIP in July 09.</p> <p>OPERATIONS AND MARKETING: </p> <p>Navratna Oil, Boroplus Antiseptic Cream, Fair &amp; Handsome fairness cream for men and Zandu Balm continued to enjoy number one status in their respective categories. Boroplus Antiseptic Cream continues to be the largest selling antiseptic cream not only in India, but also in Ukraine, Russia and Nepal. Fair &amp; Handsome became the number one UAE brand in mens face care. Launched new products like Navratna Extra Thanda Oil, Navratna Lite Oil, Boroplus Summer Lotion, Pureskin Glycerine Soap and Vasocare Petroleum Jelly across multiple categories. Zandu balm and Boroplus ranked 62nd and 77th among Indias most trusted brands across all categories (Source: Brand Equity Survey of The Economic Times, 2009). Himani Fast Reliefs advertisement won the Goafest 2009 awards, the Oscars of Indian advertising. Navratna was awarded the best packaging award by Paper Film &amp; Foil Converters Association. State-of-the-art manufacturing unit enjoying 10 years excise and income tax exemption started production at Abhoypur in Guwahati. Abhoypur unit received ISO 9001:2008, ISO 14001:2004 and ISO 18001:2007 certification. Zandu balm production commenced in a new plant in Pantnagar (Uttaranchal) in May 2009 with a 10-year excise and income tax exemption. Roped in E&amp;Y and initiated project Navodaya for improved sales and distribution and supply-chain management. Initiated steps for cost reduction and margin improvements in Zandu. Commenced integrating each facet of Zandus business marketing, R&amp;D, supply chain, sales and distribution, procurement, operations and HRD with Emamis11 | P a g e</p> <p>STUDY ON FINANCIAL REPORT OF EMAMI AND CALCULATION OF RATIOS</p> <p>12 | P a g e</p> <p>STUDY ON FINANCIAL REPORT OF EMAMI AND CALCULATION OF RATIOS</p> <p>CHAPTER 2 DATA ANALYSIS</p> <p>FINANCIAL INFORMATION</p> <p>P&amp;L AccountPROFIT &amp; LOSSACCOUNT</p> <p>------------------------------------MAR '05 12MTHS</p> <p>IN</p> <p>R S . C R. MAR '09 12MTHS</p> <p>MAR '06 12MTHS</p> <p>MAR '07 12MTHS</p> <p>MAR '08 12MTHS</p> <p>INCOME SALES TURNOVER EXCISE DUTY NET SALES OTHER INCOME STOCK ADJUSTMENTS</p> <p>225.62 6.77 218.85 1.68 3.48</p> <p>307.3 7 6.5 300.8 7 5.65 -1.85</p> <p>519.2 2 3.43 515.7 9 13.91 -0.65</p> <p>585.9 2.19 583.7 1 21.62 -0.52</p> <p>739.6 17.25 722.3 5 5.86 11.58 13 | P a g e</p> <p>STUDY ON FINANCIAL REPORT OF EMAMI AND CALCULATION OF RATIOSTOTAL INCOME EXPENDITURE RAW MATERIALS POWER &amp; FUEL COST EMPLOYEE COST OTHER MANUFACTURING EXPENSES SELLING AND ADMIN EXPENSES MISCELLANEOUS EXPENSES PREOPERATIVE EXP CAPITALISED TOTAL EXPENSES OPERATING PROFIT PBDIT INTEREST PBDT DEPRECIATION OTHER WRITTEN OFF PROFIT BEFORE TAX EXTRA-ORDINARY ITEMS PBT (P OST EXTRA -ORD ITEMS) TAX REPORTED NET PROFIT TOTAL VALUE ADDITION PREFERENCE DIVIDEND EQUITY DIVIDEND C ORPORATE DIVIDEND TAX PER SHARE DATA (ANNUALISED) SHARES IN ISSUE (LAKHS) EARNING PER SHARE (RS) EQUITY DIVIDEND (%) BOOK VALUE (RS) 224.01 304.6 7 173.8 5 1.21 14.47 0.73 46.77 9.32 0 246.3 5 52.67 58.32 1.41 56.91 6.69 0 50.22 0.07 50.29 0.95 49.36 72.49 0 12.23 1.72 611.5 8.07 100 15.8 529.0 5 225.5 6 1.15 21.95 0.99 178.4 9 20.7 0 448.8 4 66.3 80.21 1...</p>