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INTRODUCTION

As for a commerce student theoretical knowledge is not enough to achieve success 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 and outside Kerala. The study helps to get awareness about the organizational structure and functioning of successful organization, and also financial analysis of the company. It gives an 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 the financial structure and performance of the company and departmental functioning of the company.

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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 one. The study is very important for knowing the following: Financial statement analysis of the company. The departmental functions of the company. The products of the company. SWOT analysis of the company.

OBJECTIVES OF THE STUDY


To have an overall study of the company. Financial statement analysis of the company. To know about various departments and its functions. To study the products of the company. To find out the various aspects of SWOT analysis in the company.

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METHODOLOGY
The study is made personally visiting the company. The data were collected through various methods. The methods adopted mainly are: 1) Observation By observing the general surrounding, the functional process, Interactions of employees etc. 2) Data collection Primary data

Primary data collected through discussion with manager, officers and employees. And also some practical experience. 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 like internet, News paper, magazines, business dailies and journals. The following tools are used with the analysis and interpretation of financial statements: Ratio analysis: 1) LIQUIDITY RATIOS Current ratio Quick ratio

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2) LEVERAGE RATIOS Debt-Equity ratio Proprietary ratio Fixed asset to net worth 3) PROFITABILITY RATIOS Net profit ratio Return on total asset ratio Return on net capital employed Earning per share (EPS) Dividend pay out ratio 4) ACTIVITY RATIO/ TURNOVER RATIOS Stock turnover ratio Debtors turnover ratio Working capital turnover ratio Fixed asset turnover ratio

LIMITATIONS OF THE STUDY


The limitations of the study are as follows: The company wont disclose their financial matters. Lack of co-operation from certain departments due to their work load. 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 This chapter focuses on the introduction, importance of project, objectives, methodology used and the limitations of the study. Chapter 2 - Literature review - Financial performance analysis: A theoretical framework This chapter focuses on the literature review where project details the evolution of the concept and its associated contributories. Chapter 3 - Profile of the industry This chapter specifies the industry details. Chapter 4 - Profile of the company This chapter focuses on the brief history of the organization, History and growth, product profile, department profile, mission and vision of the company Chapter 5 - Analysis and interpretation 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. Chapter 6 - Findings, Conclusion and Suggestions This chapter includes the findings, conclusion and suggestions made after the study.

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LITERATURE REVIEW
Accounting is a very serious activity. One of its functions is communication of information at a specific interval, usually at the yearend by the financial statements. Financial Analysis originated and it passed through several stages of development and attained the present position. Evolution of financial analysis helps us to understand the circumstances leading to growth of the system. The Financial Statements provide a summary of the accounts of a business enterprise, the Balance Sheet reflecting the assets and liabilities and the Income Statement showing the result of operations during a certain period. Smith & Ashburne defines Financial Statements as The end product of Financial Accounting is a set of Financial Statements that purports to reveal the financial position of the enterprise the result of its recent activities and an analysis of what has been done with earnings; According to Myer, Financial Analysis is largely a study of relationship among the various financial factors in a business as disclosed by a single set of statements and a study of the trend of these factors as shown in a series of statements. Financial Statements Analysis is defined as the process of identifying financial strength and weakness of the firm by properly establishing relationship between the items of the Balance Sheet and the Profit and loss Account. In other words, Financial Statement Analysis is largely a study of relationship among the various financial factors in a business as disclosed by a

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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 in the context of information content of accounting figures. An accounting figure/ratio is value relevant as it has significant strong predicted association with the stock prices and stock market indicators such, Price-Earnings (P/E) or PriceBook (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 figures are value relevant, be it cash or accrual based.

Mingyi Hung (2000) in his paper on Accounting Standards and Value Relevance of Financial Statements: An International Analysis concluded that the use of accrual accounting (versus cash accounting) negatively affects the value relevance of Financial Statements in countries with weak shareholder protection. This 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 consumption and export, spices are important commercial crops. According to the International Organization for Standardization [ISO], there are 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 country for flavoring foods and in medicines, pharmaceutical, perfumery, cosmetics and several other industries. 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 market is booming because these products find applications in a number of industries including pharmaceutical, medicine, beverages, food processing, etc. A few developing countries especially in the Asian continent are the major producers of variety of spices. A large percentage of international and domestic

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trade takes place in the dried form. India, Indonesia, China are few of the prime producers of a variety of high quality spices and also significant contributors to the global spice market.

INDIA AND SPICES India produces 2.5 million tons to 3 million tons of spices annually. India produces spices of different categories worth around US$ 3 billion. In terms of 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 worlds 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 world exploration, global communication, trade, alliances and wars. 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 any bad cold.

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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 per cent. In coriander, cumin and fenugreek production

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 in terms of value and 500,000tonnes in terms of quantity.

THE INDIAN SHARE

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 India, at least one spice is grown in abundance. No country in the world produces as much variety of spices as India.

SPICES BUSINESS IN KERALA 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 worlds oldest known spice and is cultivated in over 15800 hectares in Kerala, which
account for 96% of the total production in the country.

There are a lot of opportunities for investors in spice sector and spices board. The care taking of the sector in India is based in the state.

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ABOUT THE COMPANY


Eastern was spearhead by late Mr. M.E MEERAN, who founded Eastern Trading Company as a whole sale provision business in 1969 in Adimali, Kerala. He expanded it to a trading business in 1975 as Eastern Agencies and set up Eastern Condiments in 1983. A proactive visionary with a distinctive talent 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 countries Middle East, U.K, U.S.A, Australia, Germany etc. Eastern Condiments Pvt.ltd. is a well established name and Keralas 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 come as the worthwhile manufacturer, distributers and exporters of the quality network and the blended spice powders and spices. .

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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.

HISTORY AND GROWTH

The story of Eastern curry powders began in a small mountain township called Adimali. Mr. M.E Meeran, the Managing Director of Eastern Group of Companies, started his career as a businessman with a marketing division named 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 pulverizes. The company got the SSI registration in 1983-1984. From the beginning of the company Mr. M. E. Meeran is the managing Director of the company. Eastern Condiments was established in 1991, an expanded form 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 turnover of 650 crore (2011-2012). 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... Eastern Condiments Pvt. Ltd. is a well-established name as Keralas largest 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 borne fruit. Nationwide branches, two well-equipped factories situated in the 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 own for years to come as the worthwhile manufacturers, distributors and 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 of Directors and Mrs. Nabeesa Meeran. For administration there is corporate office at Ernakulum. As head of administration there is chairman and below that 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 principal of the Eastern Newton School Adimali.

AWARDS AND RECOGNITI ONS 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 Spice Powders' in consumer packs, continuously for 13 years. ISO: 22000 2005 - Eastern is the first company in India to get the ISO 22000 certification.

HACCP - This was the certificate issued by food cert BV Netherlands accredited by RVA the first body in the world for food safety accreditation. It is Hazard Analysis Critical Point Certification.

LEGAL FRAMEWORK OF THE COMPANY Eastern Condiments Pvt Ltd is incorporated under THE COMPANIES ACT 1956 on 26th Feb 1991 having its registered office at Eastern condiments Pvt Ltd, P. B No: 15, Eastern Valley - Adimali, Idukki-Kerala.

MISSION OF THE COMPANY


Winning the trust of the customer through commitments to quality at the right price in all our products

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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 many more projects in the vision.
1. Eastern Condiments Pvt Ltd 2. Eastern Treads Ltd 3. Eastern Mattresses P vt Ltd 4. Eastea Chai Pvt Ltd 5. Eastern Clothing Company 6. Eastern Aqua Mineral 7. Eastern New ton School

Eastern Condiments Pvt Ltd 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.

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Eastern Treads Ltd An ISO 9001-2000 certified public limited company; Eastern Treads Ltd. is engaged in the manufacture of quality pre-cured tread, cushion/bonding, gum and 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 they are dependable, reliable and safe. Eastern Mattresses Pvt Ltd 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 and pillows. The world-class rubberized coir mattresses are manufactured at 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. manufactures quality mattresses at a state-of-the-art facility. Sunidra rubberized 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 has notched a significant position in the mattress market. Eastern Mattresses Also Manufactures Soft And Comfortable Pillows And Cushions. Eastea Chai Pvt Ltd 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 flavours and freshness Eastea is cup worth waking up to. Eastern Clothing Company

Eastern Clothing Company (An ISO Certified Company) belongs to Eastern 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 of semi cauals and formals and casual Trousers.

Eastern Aqua Mineral 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 convenient sizes. Eastern packed drinking water is also priced attractively in keeping with Easterns view of bringing high quality products to the common man at the right price.

Eastern Retreads Pvt Ltd

Eastern Retreads Pvt. Ltd. was set up in 1993 is engaged in retreading of tyres. The factory is located at Vazhakulam; Thodupuzha in Kerala is equipped with 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 petrochemical 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 processes. As a result it takes only 7 gallons of oil to produce a retread. Because of the competitive nature of the retreading industry truckers can expect to see continuous improvement in quality, durability and reliability. Eastern Newton School 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 Group promoted and managed by TRUST M.M.IBRAHIM believes MEMORIAL in the

EDUCATIONAL

CHARITABLE

strongly

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 intellectually enlightened, morally upright, socially committed, emotionally balanced, patriotic and productive citizens of our Great Nation.

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 mind and the products will become a leading brand in Kerala. 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 markets and the introduction of market specific new variants.

Eastern condiments have different kinds of spices, curry powders, blended 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 under strict conditions and pure quality is assured. Different categories of products are as follows: Spice Powders Eastern Turmeric Powder Eastern Chilly Powder Eastern Coriander Powder Eastern Black Pepper Powder Eastern Ginger Powder Eastern Kashmiri Chilly Powder Eastern Chilly Powder With Oil Eastern Coriander Cumin Powder Eastern Cumin Powder Eastern Fenel Powder

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Eastern Fenugreek Powder Eastern White Pepper Powder

Blended Spice Powder Eastern Garam Masala Eastern Sambar Powders Eastern Rasam Powders Eastern Madras Sambar Powders Eastern Vegetable Masala Eastern Chana Masala Eastern Dal Fry Masala Eastern Egg Masala Eastern Chicken Masala Eastern Fish Masala Eastern Meat Masala Eastern Mutton Masala Eastern Tandoori Masala Eastern Meen Mulaku Masala Eastern Belesaru Eastern Super Garam Masala Eastern Rajma Masala Eastern Kulambu Masala Eastern Pickle Powders Eastern Chicken Biryani Masala Eastern Mutton Biryani Masala

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Eastern Fish Biryani Masala Eastern Chicken Fry Masala Eastern Chat Masala Eastern Kabab Masala Eastern Panipuri Masala Eastern Pavbhaji Masala Eastern Puliogare Masala Eastern Seekh Kabab Masala Eastern Vangi Bhath Mix Eastern Palada Mix Eastern Payasam Mix Eastern Coconut Chutney Powder Eastern Prawn Chutney Powder Eastern Pepper Chicken Masala Eastern Beef Ularthu Masala Eastern Chilly Chicken Masala

Eastern Pickles Eastern Garlic Pickle Eastern Garlic (In Brine) Pickle Eastern Bitter Gourd Pickle Eastern Ginger Pickle Eastern Mango Pickle Eastern Mango ( In Brine) Pickle Eastern Tender Mango Pickle

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Eastern Tender Mango ( In Brine) Pickle Eastern Mango Ginger Pickle Eastern Dates Pickle Eastern Fish Pickle Eastern Tomato Pickle Eastern Goosberry Pickle Eastern Goosberry (In Brine) Pickle Eastern Lemon Pickle Eastern Hot & Sweet Lemon Pickle Eastern Lemon (In Brine) Pickle Eastern White Lemon Pickle Eastern Mixed-Veg Pickle Eastern Nutmeg Pickle Eastern Prawns Pickle Eastern Green Chilly Pickle Eastern Pineapple Pickle

Eastern Rice Based Products (For Breakfast) Eastern Puttu Powder Eastern Idli Powder Eastern Dosa Powder Eastern Pathiri Powder Eastern Appam Powder Eastern Chamba Puttu Powder Eastern Easy Palappam Mix Powder

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Eastern Appam Powder Eastern Ragi Puttu Powder

FUNCTIONAL DEPARTMENTS OF THE COMPANY


1. Finance And Accounts Department 2. Marketing Department 3. Export Department 4. Human Resource Department 5. Production Department 6. Maintenance Department 7. Quality Control Department 8. Purchase Department 9. IT Department 10. Production Planning And Control Department 11. Taxation Department

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ORGANISATION CHART
Chairman Director M&T F&A Director F&A Board of Directors Director P&O Director -It

Executive Committee
Head- Hr Head - Production Head-Purchase Head-Sales Dgm Technical Secretary Head It

FINANCE CONTROLER
DIRECTOR MANUFACTERING

AGM FINANCE DY MANAGER

ASST MANAGER TAXATION DGM MKTG MANGER EXPORTS


SR MANAGER HR& ADMIN MANAGER PRDN

MANAGER MKTG

SR OFFICER HR

PRODUCTION SUPERS

OFFICERS

SR OFFICERS

OFFICER

OFFICERS

ASST MANAGER MANAGER PPC

ASST MANAGER PURCHASE OFFICER PURCHASE

ASST MANAGER PRODUCTION MPD

OFFICERS

MANAGER ENGINEERING
SR MANAGER TECHNICAL

SR.SALES OFFICERS

SR OFFICER PPC SALES TEAM

OFFICER ENGINEERING

OFFICERS IT SR OFFICER TECHNICAL

OFFICERS PPC
OFFICER TECHNICAL

WORK SHOP IN CHARGE

Chart 4.1 [source: from H.R Dept]

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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, organizing directing and controlling financial activities like procurement and utilization of fund and distribution and distribution of earning to owners. The authorized equity share capital of the company is Rs. 150000000/- divided in to 15000000 shares of Rs. 10 each (as at 31/03/2011). General reserve of the company is Rs.88045000 (as at 31/03/2011). The company has a daily working capital of Rs.3 crore and the banking partners is FEDERAL BANK. Company has no debentures. The yearly turnover of the company is 500 crore.

Important books/records maintained by the company 1. Monthly Trail balance, Profit and loss account & Balance sheet. 2. Stock statements 3. Purchase register 4. Sales register (weekly) 5. Stock register 6. Asset register 7. Fund Flow Statement 8. Cash flow statement 9. Bank reconciliation statement (weekly) 10. Cost sheet

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11. Budgets 12. Cash and bank books etc... 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 by using ORION Accounting software. 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 bills and vouchers in safe place after including them in files. Collect amount from debtors and monitor debtors. To reconcile the bank statements with his company's bank account. 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 from purchases on credit so that cash payments can be processed on time. Maintain sales register. Maintain cash and bank books. Daily cash tally and withdrawal. Drawing monthly trial balance. Preparation of monthly profit and loss account and balance sheet. Preparation of Stock statements (monthly). Preparation of purchase registers (monthly). Preparation of sales registers (weekly).

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Preparation of stock register (monthly). Preparation of Asset registers, Preparation of Fund Flow Statement. Preparation of Cash flow statement. Preparation of Bank reconciliation statement (weekly). Preparation of Cost sheet. Preparation of Cash and bank books. Preparation of annual accounts. Maintain the general and subsidiary ledgers. Distribution of pay cheques. Monitoring the process of budget achievement providing taxation pinning and advisory service to the company. Evolve an audit manual. Advising management on funds, utilization and implementation. Preparation of corporate plans annual plans and budget.

The finance and accounts department is divided in to four working sections:-

1. Receipt data entry section


2. Payment processing & data entry section 3. Bank/Cash section 4. Cash counter &Petty 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 Statement and route traveling expenses documents submitted by sales executives 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 uploaded from PAM-Tech machines; it is done by separate section.

Some frequent Journal entries in this section: When route sales amount deposited in to bank (supporting document-bank deposit slip)

By Federal Bank A/c Dr. To Sales route When route sales amount deposited in to company cash counter (supporting document-slip provided by the company cash counter )

By Cash A/c Dr. To Sales route

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Route sales expenses, sales team those expenses taken from route collection (supporting document-expense bills)

By Expenses A/c Dr.

To Sales route

Other important functions of this section: Preparation of bank reconciliation statement for finding any difference in companies receipts, between bank account and companies records. Preparation of sales statement for finding out any increase or decrease in route sales, if sales is below targeted sales, some portion of amount deduct from sales executives salary. Preparation of sales registers (weekly). Preparation of stock register (monthly).

2. Payment processing & data entry section

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: Receive suppers bills for making payments. Purchase department send suppers bills, copy of goods received note and copy of purchase order to accounts department for making payment.

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 material, rate of material, amount of material etc

Goods received note (G.R.N) contains details such as: date, suppers invoice number & date, from address of suppers, quantity accepted, quantity rejected, its rate and amount etc

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 purchase order, officer pass a journal entry for payment due

I.e.: Raw material A/c Dr. To party And prepare a payment advice, it is send to Bank/cash section

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3. Bank/Cash section This section handles all bank payment and receipts, and cash provide to petty cash section of the company. Companys payments through issuing cheques (account payee only), Companys bank provide only 5 cheque leaf to Adimali division, and it contain 500 cheques. Cash transitions limited only up to 5000. Important and frequent transaction in this section: Receive payment advice from Payment processing & data entry section, payment advice contain details such as: Name of the payee, Vender code, Nature of payment, Request for payment-Cheque or cash, Due date for payment, Remarks by preparer:-doc.no. Invoice no & date, invoice amount & rate variation if any. Payment advice is prepared by an accounts officer & approved by senior officer. Prepare a cheque for parties name Account payee only Pass journal entry for payment I.e. Party A/c Dr. To Federal Bank. (Also record cheque number) Prepare bank payment voucher & print and also signed by the preparer. Bank Payment Voucher + Payment advice + Cheque submitted to DY.Accountant. Payment voucher and cheque is signed by DY.Accountant after verification. 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 4. Cash counter & Petty cash section 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

STRUCTURE OF FINANCE DEPARTMENT


Deputy Manager Finance & Accounts

Senior Officers

Officers

Data Entry Officers

Chart 4.2 [source: from dy.accounts manager]

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2. HUMAN RESOURCE MANAGEMENT DEPARTMENT


Human resources are the real assets of an organization. If treated well, they can take organizations to commanding heights. Organizations are generally driven by a 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 driving force behind the organization.

Employment of competent and specialized persons at various levels is one important reason for the continuous success of Eastern. Moreover employment of women at certain key areas of operations avoids unreasonable labour problems to an extent.

The key factor in the growth of Eastern is mainly the good and healthy employeremployee relationship. About 2500 employees are working with a mutual relationship in the organisation. In eastern maximum 80% people are women workers. The workers keep discipline in the organisation and also they do the works very carefully.

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OBJECTIVES OF HUMAN RESOURCE DEPARTMENT 1. To procure right type of personnel for right job at the right time 2. To provide right kind of training to personnel to increase their productivity 3. To ensure effective utilization of human resources 4. To ensure development of human resources by offering opportunities for learning and advancement 5. To achieve and maintain high morale among employees in the organization by securing better human relation 6. To identify and satisfy the needs of the individuals by offering various monetary and non-monetary rewards

SCOPE AND ACTIVITIES OF HUMAN RESOURCE DEPARTMENTS Human resource or Manpower planning Recruitment, selection and placement of personnel Training and Development of employees for their efficient performance and growth Appraisal performance of employees and taking corrective steps Motivate the workforce Wage and salary administration Personal counseling Compensation and benefits

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RECRUITMENT PROCEDURES ARE:


In eastern they are following two types of recruitment procedures direct recruitment and internal recruitment. 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 people from outside its company service. B) INTERNAL RECRUITMENT The company for filling the post by efficient and skilled workers from the rank, promotion and panchayat has preferred local candidates who belong to 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. 1) Tests are conducted only for senior position 2) Interview After the test the managers conduct face-to-face interview with candidates and select the best person based on his qualification and ability.

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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 selection procedure of remaining all posts. 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 employees 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 forward it to the top management by recommending incentive or promotion
WAGES AND SALARY

The workers are paid in two types of wage system: 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, which also includes the loading and unloading workers. NON MONITARY BENEFITS The company provides a lot of non monitory benefits to their employees. Some of them are as following Transportation Personal protective equipments Medical insurance

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Pension scheme Annual medical check up Canteen facilities Tours and picnics

Structure of human resource & administration department

Vice president

Senior manager hr & administration

Senior officer

Officers

Chart 4.3 [source: from senior officer H.R]

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3. PRODUCTION DEPARTMENT
The production department is the backbone of a manufacturing organization. Production is a process of converting input in to output. Technically speaking, a production is concerned with step by step process of raw material into finished goods. OBJECTIVES a. Design of the product b. Design of the production system c. To ensure production according to the plan and requirement. FUNCTIONS OF PRODUCTION DEPARTMENTS a. Product selection and design b. Production planning c. Quality control d. Inventory control e. Plant layout and material handling 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 further packing. The distribution is handled by the company itself. Eastern Condiment deals with production and packing of curry powders, 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 consumer at fresh conditions at a minimal cost, the company follows 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 monthly indent which is converted in to weekly plans by the production department. A stock of goods for 3 days production is kept with the department in case of contingencies. All details regarding production are given to PPC 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 companys 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, turmeric &spices Cleaning Drying Roasting

Mixing

Powdering

Packing

Marketing

Chart 4.4 [source: from officer production]

STRUCTURE OF PRODUCTION DEPARTMENT

MANAGER PRODUCTION

AST.MANAGER

SR.SUPERVISORS

SUPERVISORS Rosting, Powdering, Hnd.paking, Mach. pking

Workers

Chart 4.5 [source: from officer production]

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4. MAINTENANCE DEPARTMENT
Maintenance department of Eastern are responsible for keeping the plant and equipments in good condition. Maintenance Department of Eastern has four sections. 1. Electrical 2. Mechanical 3. Technical 4. Automobile

FUNCTIONS OF MAINTENANCE DEPARTMENT


1. PREVENTIVE FUNCTION Preventive function done to alert breakdowns, improve efficiency of working to keep a routine monitoring of the machineries. There is a routine maintenance schedule and the preventive maintenance is done according to it. This is done in weekly or monthly basis according to the condition of the machine. 2. BREAKE DOWN MAINTENANCE This is done to restore the machine back to the work if it undergoes a break down. It is done according to the priority of the machine. This is done in minimum possible time, so that production of the plant is not affected. 3 PERIODICAL MAINTAINCE This is done on a specific period of time it is like routine happens in fixed time to ensure proper working of machines.

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OBJECTIVES OF MAINTENANCE DEPARTMENT a. Optimize the use of available funds, personnel and facilities and equipment through the effective maintenance management methods b. Systematically identify maintenance needs and deficiencies and capital improvement needs at all field stations c. Enable preparation of service maintenance and construction budget

request using systematic, standardized procedure d. Monitor and document corrective accomplishment actions , project expenditure and

STRUCTURE OF MAINTENANCE DEPARTMENT

Maintenance Manger

Automobile in charge

Maintenance Team

Workers

Chart 4.6 [source: from officer maintenance]

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5. MARKETING DEPARTMENT
Marketing is considered to be the head of an organization. It is the most important department in an organization. One of the important reasons behind the success of 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 selling regions in all around the state. OBJECTIVES MARKETING DEPARTMENT Developing marketing strategies Capturing marketing insights Building strong brand image Delivering value to consumers Connecting with customers

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 has 144 products.

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The various sales techniques consist of:-

1. Route Sales 2. Factory Fresh Outlet 3. Inter Company Sales 4. Export Sales 5. 30 Reverse vehicles 6. Performance awards 7. Sales executives classified in to three A, B , C on the basis of their 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 facilities is given to only around 200 parties. 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 problems arising can be brought to the notice of the management.

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By the direct distribution the company has achieved a lot of benefits. Some of them are as follows;

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 product. It helps to avoid unnecessary commission, brokerage and other related expenses. 4. The companys own vehicles used for distribution aid to give an important mode of advertisement in addition to the other media advertisements. This incurs no additional cost.

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 more than 78% market share to almost all its products. MARKETING OUT SIDE KERALA Eastern also deals with sales of their products outside Kerala by using well established channel for over 9 years.

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Outside marketing:
Factory

Dippo or carry forward ag

Super stockist

Distributers

Retailers

Chart 4.7 [source: from marketing manager]

STRUCTURE OF MARKETING DEPARTMEMT


CHAIRMAN

DGM MANAGER

SALES ADMNI.STAFFS

MANAGER

ASSISTANT MANAGER SR.SALES EXECUTIVES ent SALES EXCECUTIVES

DRIVERS

SALES ASSISTANTS

Chart 4.8 [source: from marketing manager]

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6. QUALITY CONTROL DEPARTMENT


Eastern have well equipped quality control department maintained by qualified professionals and new technology oriented machines. Laboratory in Adimali is 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 Checking the quality of raw material Checking the quality of semi finished goods Checking the quality of finished goods Perform new research and development process Helping to purchase department to procure right supplier Help production department in actual quality production Maintain standard for ISO 22000 Eastern condiments laboratory is function at three level 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 the raw materials. It has 2 divisions-conventional method and automation method. Chemical test helps to detect stones, moisture, oil percentage etc The strict quality control techniques has got Eastern several quality certifications and accreditations, including the HACCP and ISO 22000.

Research and development function is also performed by quality control department.

STRUCTURE OF QUALITY CONTROL DEPARTMENT

HEAD TECHNOLOGY & ENGINEERING

TECHNICAL MANAGER

ASST MANAGER MICROBIOLOGY

SENIOR OFFICER TECHNICAL

MICROBIOLOGIST

TECHNICAL OFFICER

ASSITANT TECHNICAL OFFICER

Chart 4.9 [source: from H.R dept]

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7. PURCHASE DEPARTMENT
The purchasing department will be responsible for providing the materials, components and equipment required to keep the production process running smoothly. A vital aspect of this role is ensuring stocks arrive on time and to the right quality. Performance of a manufacturing firm always depends on the efficiency of its purchase department. The various raw materials needed for the production is purchased by this department. OBJECTIVES OF PURCHASE DEPARTMENT To provide uninterrupted flow of materials and service for company operations To procure materials economically at a cost consistent with the quality and service required. However, generally all purchases may be attempted at the lowest cost. To find reliable alternative source of supply To buy at the most economic order quantities To buy the best value, a combination of right quality at the best price with the best supplier service To maintain good relations with vendors To promote source development To develop and maintain good buyer-seller relationship

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FUNCTIONS OF PURCHASE DEPARTMENT

The main functions of the Purchase Department are defined as follows: Procurement of stores through indigenous and foreign sources as required in accordance with the rules in force. Checking of requisitions Selection of suppliers for issue of enquiries. Issuing enquiries/tenders and obtaining quotations. Issue of Purchase Orders. Follow-up of purchase orders for delivery in due time Verification and passing of suppliers bills to see that payments are made promptly. Correspondence and dealing with suppliers, carriers etc., regarding shortages, rejections etc., reported by the Stores Department. Maintenance of purchase records.

Purchase of raw materials , items such as dry chilies, coriander, turmeric, cumin, fenugreek, fennel, rice, fruits and vegetables, preservatives, salt etc and outsourced etc, purchased at Ernakulam, Adimali, and Theni. Evaluation of existing suppliers

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STRUCTURE OF PURCHASE DEPARMENT

Board of Directors

AGM Purchase

Asst Managers

Senior Officers

Officers

Chart 4.10 [source: from H.R Dept]

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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 distributors. 30 % of total production is export. The company exports above 600 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 Separate packing bottles and duplex packet

More quantity products

Based on country standards

Quality checking under each stage

Mode of transportation in export business

Production at Adimali stuffing and packing is carried at kothamangalum

Packed materials are transferred using containers each have 10 tone capacity monthly 60 containers are exported.

Company takes containers through his on vehicles to Cochin port. From Cochin port containers are transferred other countries by sea.

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Exported products are reaching the hands of distributers from there it reach the customers. The dealers are working on commission basis.

ACHIEVEMENTS Eastern is the leading exporter of condiments from India. Eastern has received the spices board award for the best exporter continuously for the last 14 years.

STRUCTURE OF EXPORT DEPARTMENT


MANAGER

SENIOR OFFICER

JOUNIOR OFFICER

OFFICER

Chart 4.11 [source: from Export manager]

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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 is necessary for development of mankind. Today the term information technology has bellowed to encompass many aspects of computing and technology, and the term is more recognizable than ever before. The information technology umbrella can be quite large, covering many fields. IT professionals perform a variety of duties that range from installing applications to designing complex computer network and information data bases. The Eastern is a fully computerized. Adimali division has 140 machines. The company has centralized data base password control to restrict unauthorized access. All the departments are connected via networks. Eastern uses oracle based software called ORION, which has been customized to suit the needs of their particular organization. The networking is done through BSNL Broadband line. FEATURES Well functioning ERP system. DATA BASE BackUp High Speed Internet facility. Intel Pentium4 processer, 512 MB RAM and 80 GB Hard disc. Windows 7 Operating system. Online conference facility. Best H.P Printers. Wi-Fi Facility etc

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MAIN FUNCTIONs OBJECTIVES OF IT DEPARTMENT Help in day to day process. Timely access to data. Proper communication with departments and out side. Ensure the protection and security of data. System maintenance & Repairing. Software installation and updating. Facilitating good communication system. Data management. Computer networking. Computer engineering. Data base system design. Software design. Management of information system. The company has a good IT team for implementing the ERP(Enterprise 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 package used is ORION 7.4 and ORION 10.x. STRUCTURE OF IT DEPARTMENT

Board of directors

IT Mangers

Senior Officers

Officers

Table 4.12 [source: from H.R Dept]

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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 production scheduling on weekly basis. Production is according to the requirements and will depend on seasonal demands. 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 transferred into production department. Production planning and control is the department which plans everything 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 provided by the marketing department. Based on this, they give instruction to purchase department and the production department. Production is according to the 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 production and purchase.

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OBJECTIVES OF PPC DEPARTMENT Increase profitability of the company Quality control Minimize cost Coordination between men and machines Maximize output with minimum input Ensure operations are run efficiently and as planned Optimize the use of resource, material, machines etc.

STRUCTURE OF PPC DEPARTMENT

MANAGER PPC

SENIOR OFFICER

OFFICERS

SUPERVISOR

WORKERS

Table 4.13 [source: from H.R dept]

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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 on the basis of sales. For actual tax Payment Company follows: Internal audit, Statuary audit & Macro audit. Mainly company follows: Vat, Central Excise & Service Tax.

STRUCTURE OF TAXATION DEPARTMENT

MANAGER

Deputy Manager

Senior manager

WORKERS Chart 4.14 [source: H.R dept]

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Introduction
Financial Analysis is the process of determining the operating & financial characteristics of a firm from accounting data & financial statement. The goal of such analysis is to determine efficiency & performance of the firm management, as reflected in the financial records and reports. Its main aim is to measure the firms liquidity, profitability and other indications that business is conducted in a rational and orderly way. RATIO ANALYSIS Ratio analysis is a powerful tools a financial analysis. Financial ratio analysis is an arithmetic relationship between two figures. 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 companys balance sheet & profit and loss account. As per I.M. Pandey Financial ratio in the relationship between two accounting figures, expressed mathematically. A financial ratio is the relationship between two accounting figures expressed mathematically. Ratios provide clues to the financial position of a concern. These are the indicators of financial strength, soundness, position or weakness of an enterprise. One can draw conclusions about the financial position of a concern with the help of accounting ratios.

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The following categories of some ratios calculated from the books of eastern condiments private limited (ECPL) as under: 1. Liquidity Ratios 2. Leverage Ratio 3. Activity Ratios / Turnover Ratios 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 measures if there is a declining trend. a. Net Profit Ratio b. Return On Total Assets c. Return On Net Capital Employed/ Investment d. Earning Per Share (EPS) e. Dividend Pay Out Ratio 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 is to determine the overall profitability. Net profit ratio determines overall 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 TABLE: 5.1 NET PROFIT RATIOS Financial Year 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 Net Profit 1385.4 591.85 1210.42 3190.54 1043.62 Net Sales 16019.05 19487.84 27514.45 32026.17 37590.3 Net Profit Ratio (%) 8.65 3.04 4.40 9.96 2.78

[source: financial statements]

Chart 5.1 Net Profit Ratio

12 10 8 6 4 2 0 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

[source: table 5.1]

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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 company during 2011.

b. RETURN ON TOTAL ASSETS


It calculates or measures the productivity of total assets. It is to ascertain whether assets are being utilized properly or not. Return on Total Assets = Net Profit / Total Assets x 100

TABLE: 5.2 RETURN ON TOTAL ASSET Financial Year 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 Net Profit 1385.4 591.85 1210.42 3190.54 1043.62 Total Asset 11195.88 21118.45 15471.16 16847.31 18975.33 Return on total assets (%) 12.37 2.80 7.82 18.94 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

[source: table 5.2]

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 utilizing the assets effectively.

c. RETURN ON NET CAPITAL EMPLOYED


This ratio is also known as return on investment (ROI). The primary objective of making investment in any business is to obtain satisfactory return on capital 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 more efficient use of the capital employed. Return on Net Capital Employed = EBIT / Net Capital Employed x 100
Net capital employed = FA+CA-CL

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TABLE: 5.3 RETURN ON NET CAPITAL EMPLOYED Financial Year 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 PBT (Profit Before TAX) 2190.62 1069.55 1837.73 4684.38 2533.23 Net capital Employed 10498.58 14369.54 14701.89 16281.3 18662.3 Return on Net Capital Employed (%) 20.86 7.44 12.50 28.77 13.57
[source: financial statements]

Chart: 5.3 Return On Net Capital Employed


35 30 25 20 15 10 5 0 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

[source: table 5.3]

Interpretation A good return on investment indicates that the business is generating enough 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 years 2008 and 2009.

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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 companys capacity to pay dividend on its equity share holders. E.P.S = Net Profit after Tax, Pref.Dividend / No. Of Equity Shares TABLE: 5.4 EARNING PER SHARE Financial Year 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 Net Profit after Tax, Pref.Dividend 1385.4 591.85 1143.46 3123.58 1043.62 No. Of Equity Shares 8400000 8400000 8400000 8400000 9656900 E.P.S (times) 16.49 7.04 13.61 37.18 10.81

[source: financial statements]

Chart: 5.4 Earning Per Share


40 35 30 25 20 15 10 5 0 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

[source: table 5.4]

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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 of the company is very low.

e. DIVIDEND PAY-OUT RATIO


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 shareholders by the total profit belonging to them.
Dividend Pay-Out Ratio = Dividend per Equity Share / Earning Per Share x 100

TABLE: 5.5 DIVIDEND PAYOUT RATIO


Financial Year Dividend per Equity Share E.P.S Dividend Pay-Out Ratio (%)

2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

5.3 5.3 0 4.5 4.5

16.49285714 7.045833333 13.61261905 37.18547619 10.80698775

32.13 75.22 0 12.10 41.64

[source: financial statements]

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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

[source: table 5.5]

Interpretation It indirectly shows the financial policy of the management as to what proportion of 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 the year 2011 the pay-out ratio was 41.64 %.

f. RETURN ON EQUITY
It signifies the return on equity shareholders funds. The profit considered for computing the ratio is taken after payment of preference dividend. It is calculated by using the following formula: Return on equity = Profit after interest, tax & Pref.Dividend x 100 Equity shareholders funds

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TABLE: 5.6 ROE Financial Year 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 Net Profit after Tax, Pref.Dividend 1385.4 591.85 1143.46 3123.58 1043.62 Equity shareholders funds 7474.3 7523.08 8212.86 10884.53 11424.81 Return On Equity (%) 18.53 7.87 13.92 28.70 9.13

[source: financial statements]

Chart: 5.6 ROE


35 30 25 20 15 10 5 0 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

[source: table 5.6]

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 return which the shareholders get is reduced.

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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 expressed as times and should always be more than one.
a. WORKING CAPITAL TURNOVER RATIO

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 low ratio indicates the working capital is not properly utilized. Working Capital Turnover Ratio = Net Sales / Net Working Capital
*Net W.C = C A - C L

TABLE 5.7 WORKING CAPITAL TURNOVER RATIO Financial Year 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 net sales 16019.05 19487.84 27514.45 32026.17 37590.3 Working Capital 4430.27 6593.37 5993.29 5794.48 8243.21 Working Capital Turnover Ratio (Times) 3.61 2.95 4.60 5.53 4.56
[source: financial statements]

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Chart 5.7 WCTR


6 5 4 3 2 1 0 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

[source: table 5.7]

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 capital ratio can be viewed. Operating efficiency of the company is good.

b. FIXED ASSET TURNOVER RATIO This ratio indicates the extent to which the investments in fixed assets contribute towards sales. If compared with a previous year, it indicates whether the investment in fixed assets has been judicious or not. Fixed Asset Turnover Ratio = Net Sales / Fixed Assets

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TABLE 5.8 FIXED ASSET TURNOVER RATIO Financial Year 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 Net sales 16019.05 19487.84 27514.45 32026.17 37590.3 Fixed Asset 6068.31 7776.17 8708.6 10486.82 10419.09 Fixed Asset Turnover Ratio 2.64 2.51 3.16 3.05 3.61

[source: financial statements]

Chart 5.8 Fixed Asset Turnover Ratio


4 3.5 3 2.5 2 1.5 1 0.5 0 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

[source: table 5.8]

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 capacity. The traditional standard for the ratio is two times. Total Assets Turnover Ratio = Net sales / Total assets

TABLE 5.9 TOTAL ASSETS TURNOVER RATIO


Financial Year Net sales Total asset Total assets turnover ratio

2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

16019.05 19487.84 27514.45 32026.17 37590.3

11195.88 21118.45 15471.16 16847.31 18975.33

1.43 0.92 1.78 1.90 1.98

[source: financial statements]

Chart 5.9 Total assets turnover ratio


2.5 2 1.5 1 0.5 0 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

[source: table 5.9]

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Interpretation The total asset turnover ratio of the company shows increasing trend from the year 2008 to 2011. It reflects a companys efficiency in managing its significant assets. in the year 2011 the ratio was 1.98 (times).

d. CAPITAL TURNOVER RATIO Managerial efficiency is calculated by establishing the relationship between cost of sales or sales with the amount of capital invested in the business. Capital Turnover Ratio = Sales / Capital Employed CE = FA+CA-CL

TABLE 5.10 CAPITAL TURNOVER RATIO Financial Year 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 Net sales 16019.05 19487.84 27514.45 32026.17 37590.3 Net capital Employed 10498.58 14369.54 14701.89 16281.3 18662.3 Capital turnover ratio (times) 1.52 1.36 1.87 1.97 2.01
[source: financial statements]

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Chart 5.10 Capital turnover ratio Capital turnover ratio (5 years)


2.5 2 1.5 1 0.5 0 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

[source: table 5.10]

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 capital turnover ratio of the company was 2.01.

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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 its liquid assets. 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 2: 1 i.e. to repay current liabilities; there should be twice current assets. Current ratio = Current Assets / Current liabilities

TABLE 5.11 CURRENT RATIOS


Financial Year Total of Current asset Total of current liabilities Current ratio (times)

2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

6503.76 9404.63 7709.53 8492.35 10204.61

2073.49 2811.26 1716.24 2697.87 1961.4

3.14 3.344 4.494 3.15 5.20


[source: financial statements]

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Chart 5.11 Current ratio


6 5 4 3 2 1 0 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

[source: table 5.11]

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 2011 the current ratio is 5.20.

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 of 1 : 1 is considered good / favorable for a company. Liquid ratio = Liquid or quick assets / Current liabilities

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TABLE 5.12 LIQUID RATIO Financial Year 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 Total of liquid assets 4351.02 7088.28 5572.95 4820.3 3719.94 Total of current liabilities 2073.49 2811.26 1716.24 2697.87 1961.4 Liquid ratio (times) 2.10 2.52 3.25 1.79 1.90
[source: financial statements]

Chart 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

[source: table 5.12]

Interpretation Liquid ratio of the company shows fluctuating trend. A quick ratio of 1 : 1 is 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 ability to meet its current or liquid liabilities in time.

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4. LEVERAGE RATIO These ratios are also called efficiency ratios. These ratios measure the owners stake in the business vis--vis that of outsiders. The long term solvency of the business can be examined by using leverage ratios. a. DEBT-EQUITY RATIO It is also otherwise known as external to internal equity ratio. It is calculated to know the relative claims of outsiders and the owners against the firms assets. This ratio establishes the relationship between the outsiders funds and the shareholders fund. In India, this ratio may be taken as acceptable if it is 2 : 1. If the debt-equity 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 upon outsiders for its existence. Debt-Equity Ratio = Outsiders Fund / Shareholders Fund

TABLE 5.13 DEBT-EQUITY RATIO Financial Year 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 Outsiders fund 5795.07648 10098.75125 8974.54 8660.65 9511.92 Shareholders Fund 7474.3 7523.08 8212.86 10884.53 11424.81 Debt-Equity Ratio (times) 0.77 1.34 1.09 0.79 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

[source: table 5.13]

Interpretation Debt-equity ratio of the company shows fluctuating trend. A ratio of 1:1 is usually considered to be satisfactory ratio although there cannot be rule of thumb or standard norm for all types of businesses. Theoretically if the owners interests are greater than that of creditors, the financial position is highly solvent.

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 ratio, the better it is for concerned. Proprietary Ratio = Shareholders' Funds / Total Assets

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TABLE 5.14 PROPRIETARY RATIO Financial Year 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 Shareholders Fund 7474.3 7523.08 8212.86 10884.53 11424.81 Total Asset 11195.88 21118.45 15471.16 16847.31 18975.33 Proprietary Ratio (times) 0.67 0.36 0.53 0.65 0.60

[source: financial statements]

Chart 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

[source: table 5.14]

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 will include greater risk to the creditors.

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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 creditors funds have been used to acquire a part of the fixed assets. Fixed Asset to Net Worth = Fixed Asset / Shareholders Fund

TABLE 5.15 FIXED ASSET TO NET WORTH Fixed Asset To Financial Year Fixed Asset Shareholders Fund Net Worth (times) 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 6068.31 7776.17 8708.6 10486.82 10419.09 7474.3 7523.08 8212.86 10884.53 11424.81 0.81 1.03 1.06 0.96 0.91

[source: financial statements]

Chart 5.15 Fixed Asset to Net Worth


1.2 1 0.8 0.6 0.4 0.2 0 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

[source: table 5.15]

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Interpretation In the year 2008 and 2009 the ratio is greater than one, which means that creditors 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 purchase fixed assets.

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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 companys strategic situation. The technique is based on the assumption that effective strategy derives a sound fit between a firms internal resources (strength and weaknesses) and its external situation (opportunities and threats).

STRENGTHS Eastern holds more than 78% of the market share in all its products in Kerala. It has a good customer relationship because of its product quality and freshness. Eastern is the largest exports of spice powders in consumer pack from India that export mainly to middle East, U.K, Australia and Germany. Presently the company is exporting 30% of its products. The quality of the products is up to International standards. First company in India to get ISO 22000 and second in Asia. Eastern is only doing direct sales. It helps the company to avoid intermediaries and so unnecessary commissions can be avoided. It has direct sales to more than 40000 shops in Kerala.

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Eastern was selected as second most popular brand in Kerala by the Dhanam Business survey in 2008.

It has the facilities for controlling pollution and also for excellent productivity.

All departments are computerized and it helps to easy handling of jobs. Eastern is the leading exporter of condiment. Best spice export award from spice board for the last 10 year.

HACCP- Hazardous Analysis Critical Control Point Certificate issued by food cert Bv Netherland.

98% of the sales are cash sales. Best spice export award from spice board for the last 14 year. It has a good employee employer relationship. Grievance handling is done in weekly basis. Well established quality control lab checks the raw material thoroughly and it helps to assure the quality of the products.

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WEAKNESS
Lack of advertisement in Medias. Location of factory is not perfect for easy transportation. Only aware about curry powder Not enough market share in outside Kerala Cash carrying method is so expensive and risk Less availability of labours Some products are not available in rural areas.

Problems in install a new system adopted in the company.

OPPORTUNITIES
Extend the exporting to other countries also. Extend the product line. Make the pickles available in local market also. North Indian market will give more growth to the company. Possibility of get listed as a public limited company. Starting a spices garden it gives two opportunity. 1) Can be used for research activities 2) Can be promoted as a tourist spot Implementation of new machineries to company for more production.

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THREATS
High competition in local market due to the low investment requirement for the entering this industry. Upward trend in material price. Each year hundreds of new curry powder companies arising in whole market. Change in consumer taste and preference. Availability of raw-materials from the local market is very less. Appreciation in money value. Upcoming retailers and their product

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INTRODUCTION
The study helps to get awareness about the organizational structure and functioning of successful organization, and also financial analysis of the company. It gives an opportunity to interact with the people working in the organization and financial structure of the company. This study with financial statement analysis is carried out at Eastern Condiments Pvt.Ltd, The study has been carried out to get an understanding of the financial structure and performance of the company and departmental functioning of the company. My findings and suggestions after this study as given below:-

FINDINGS
In the year 2010 company shows good performance, sales was high and net profit was also high. The turnover of the company shows increasing trend. In the year 2011 gross profit of the company was high, but net profit of the company was low by comparing previous year. Loss on slump sale of tea division was the main reason for decreasing net profit of the company during 2011. The authorized equity share capital of the company is Rs.150000000 divided in to 15000000 shares of Rs.10 each. 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 utilizing the assets effectively during that year.

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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 utilizing the assets effectively during that year. In the year 2008 Dividend pay-out ratio was higher: the dividend pay-out ratio was 75.22%. 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 2008 and 2009 the ratio is greater than one, which means that creditors funds was used to acquire a part of the fixed assets. Eastern curry powder is a household name in India and is the largest exporter of Spice powders in consumers. Pack from India those exports mainly to Middle East, U.K, U.S.A, Australia & Germany. 25 % of profits from export. Presently the company is exporting 60% of its products. Presently the company export 30% of total production. The total number of employees in the company is above 2500. The company won prestigious award for the outstanding export performance by spices board India, for 14 continuous years. The company has well organized and coordinated organizational structure. The companys own vehicles undergoing distribution aids to give an important mode of advertisement. The company has fully computerized departments. The company ensures high quality and taste to all its products. The companies have around 200 vehicles for the delivering purpose. Company has total 500 active vehicles.

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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.

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SUGGESTIONS
Company can start new plants to cover outside Kerala market accordance with availability of raw material preference. Company can give more advertisement on mass media for outside Kerala market. For reducing the cost company can install new automated machineries. Company can develop new product related with food sectors. Company can maintain proper day by day market research programs to know movements in the markets. Company can take direct feedback from customers for development of new products. Company can participate more actively in cooperate social responsibility area. Company can try to extend the market to other foreign countries also. Company can introduce pickles in the local market. Company can take direct feedback from employees for development of their personality, motivation level also for new product development. Increasing the exports also helps the company to increase its profit level.

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Conclusion
Eastern condiments Pvt. Ltd is an ISO 22000-2005 company. Company aim is 1000 crore turnover in coming 3 years. Financial statement analysis of the company was very helpful to identify the financial performance of the company and financial position of the company. 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 to understand some of the opportunities and threats of the company. . Being a Commerce student the internship training in EASTERN CONDIMENTS PVT LTD. has benefited me with so much of confidence and awareness, so as to be capable of myself to work in a firm. The study gave me an opportunity to experience and improves my practical knowledge besides my theoretical knowledge about an organization.

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BIBLIOGRAPHY
NEWS PAPER Mathrubhumi News Paper (on: 12 July 2012, 7 June 2012) BOOKS

Business studies - K.G.C Nair Cost Accounting - K.G.C Nair Corporate Accounting - K.G.C Nair Company Albums

WEBSITES http://www.accounting4management.com http://www.businessstudies.co.uk http://www.eastern.in http://www.indianspices.com http://www.spicesboard.org

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APPENDIX
EASTERN CONDIMENTS PRIVATE LIMITED
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2011
Schedule No. For the year ended 31st March 2011 For the year ended 31st March 2010 (Rs.in Lakhs)

(Rs. In Lakhs) Income Gross Turnover Less: Excise Duty Paid Net Sales Other Income 9 8 37,591.16 0.86

32,026.17 _

37,590.30 971.4 38,561.70

32,026.17 606.19 32,632.36

Expenditure (Increase)/Decreasein Finished Goods and Work_in_Process Manufacturing and Other Expenses Provision for Diminution in Value of Investments Provision for Doubtful Loan Loss on Slump Sale of Tea Division (See Schedule 12,Note No. 18) Interest and Finance Charges (see Schedule 12,Note No. 3) Depreciation 4 10 11 786.74 33,954.09 207.5 724.28 _ 124.82 _ 512.83 1,291.69 36,028.47 Profit Before Tax Less: Provision for Current Tax Tax relating to Earlier year Deferred Tax 1,450.00 2.43 _ 37.18 1,489.61 Profit After Tax Add:Surplus brought forward from previous year 1,043.62 5,548.53 286.16 1,493.84 3,190.54 3,195.91 1,780.00 2,533.23 501.61 855.47 27,947.98 4,684.38 552.77 26,940.16 203.51

Profit Available for Appropriation Less: Appropriation: General Reserve

6,592.15

6,386.45

104.45

319.06

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Dividend on Preference Shares _ Interim Dividend @Rs.4.50(Previous Year Rs.4.50)per Equity Share of Rs.10/-each Tax on Dividends 434.56 68.78 607.79 Balance Carried to Schedule 2 Earnings per Share (in Rs.)(Face Value Rs.10/)Basic &Diluted Earnings Per Share (see schedule 12,Note No.13) 5,984.36 11.69

66.96 378 73.9 837.92 5,548.53 37.05

EASTERN CONDIMENTS PRIVATE LIMITED BALANCE SHEET AS AT 31st MARCH, 2011


Schedule No. As at 31st March 2011 As at 31st March 2010 (Rs.in Lakhs)

(Rs.in Lakhs) 1.SOURCES OF FUNDS (1) Shareholder's Funds (a) Share Capital (b) Reserves and Surplus 1 2 965.69 10,459.12 11,424.81 (2) Loan Funds (a) Secured Loans (b) Unsecured Loans (3) Deferred Tax Liability(Net) 3 4,805.10 2,476.23 269.19 18,975.33 2. APPLICATION OF FUNDS (1) Fixed Assets (a) Gross Block (b) Less : Depreciation (c ) Net Block (d) Capital Work-in- Progress 4 14,645.04 4,707.12 9,937.92 481.17 10,419.09 (2) Investments (3) Current Assets, Loans and Advances (a) Inventories (b) Sundry Debtors (c ) Cash and Bank Balances (d) Loans and Advances 5 6 6,484.67 2,019.62 553.52 1,146.80 10,204.61 313.03

4,560.00 6,324.53 10,884.53

4,004.54 1,726.23 232.01 16,847.31

11,507.45 3,713.33 7,794.12 2,692.70 10,486.82 566.01

3,672.05 2,125.15 280.95 2,414.20 8,492.35

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Less : Current Liabilities and Provisions (a) Current Liabilities (b) Provisions

7 1,150.94 810.46 1,961.40 1,537.88 1,159.99 2,697.87 5,794.48 16,847.31

Net Current Assets

8,243.21 18,975.33

Significant Accounting Policies and Notes on Accounts

12

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