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CONTENTS
INTRODUCTION
1. Company’s Profile
2. Vision of the Company.
3. Mission of the Company
4. Business of the Company (Products).
5. Management of the Company (BOD).
6. Competitors
INTRODUCTION
Company’s Profile
Emami Limited is one of the leading and fastest growing personal and healthcare businesses in
India established in 1974 with an enviable portfolio of household brand names such as BoroPlus,
Navratna, Fair and Handsome, Zandu Balm, Mentho Plus Balm, Fast Relief and Kesh King. The
current operations comprise more than 60+ countries including. SAARC, MENAP, SEA, Africa,
Eastern Europe and the CIS countries.
To contribute whole heartedly towards the environment and society integrating all our
stakeholders into the Emami family
To make Emami synonymous with natural beauty and health in the consumer’s mind
To drive growth through quality and innovation in products and services.
To strengthen and foster in the employees, strong emotive feelings of oneness with the
company through commitment to their future
To uphold the principles of corporate governance and to encourage decision making ability at
all levels of the organizatio
For more than 35 years Emami has been innovating and launching brands meeting multiple
consumer needs, spanning across various income groups, for young to old and everyone in -
between. They are passionate about creating best in class and affordable brands in health and
personal care markets.
Boroplus
Navratna
Zandu balm
Fast Relief
Kesari Jivan
Vasocare
Zandu Healthcare
HE
Damond Shine
COMPETITIORS
HUL 461830.18 1
Marico 50921.30 4
Colgate 42539.91 5
P&G 38912.14 6
Emami 15234.07 8
Income
2,483. 2,364. 2,341.
119.00 5% 22.99 1%
Sales Turnover 27 27 28
Excise Duty 0 10.28 39.57 -10.28 -100% -29.29 -74%
2,483. 2,353. 2,301.
Net Sales 129.28 5% 52.28 2%
27 99 71
Other Income 36.39 30.24 45.78 6.15 20% -15.54 -34%
Stock Adjustments 14.47 10.48 13.2 3.99 38% -2.72 -21%
2,534. 2,394. 2,360.
Total Income 139.42 6% 34.02 1%
13 71 69
Expenditure
Raw Materials 894.93 835.26 812.39 59.67 7% 22.87 3%
Power & Fuel Cost 22.18 17.82 14.51 4.36 24% 3.31 23%
Employee Cost 237.29 215.94 194.96 21.35 10% 20.98 11%
Selling and Admin
398.6 404.9 365.78 -6.30 -2% 39.12 11%
Expenses
Miscellaneous
243.75 191.1 188.25 52.65 28% 2.85 2%
Expenses
1,796. 1,665. 1,575.
Total Expenses 131.73 8% 89.13 6%
75 02 89
700.99 699.45 739.02 1.54 0% -39.57 -5%
Operating Profit
PBDIT 737.38 729.69 784.8 7.69 1% -55.11 -7%
Interest 19.29 33.17 57.62 -13.88 -42% -24.45 -42%
PBDT 718.09 696.52 727.18 21.57 3% -30.66 -4%
Depreciation 318.04 305.31 304.67 12.73 4% 0.64 0%
Profit Before Tax 400.05 391.21 422.51 8.84 2% -31.30 -7%
PBT (Post Extra-ord
400.05 391.21 422.51 8.84 2% -31.30 -7%
Items)
Tax 91.25 79.72 75.54 11.53 14% 4.18 6%
Reported Net Profit 305.24 309.52 346.37 -4.28 -1% -36.85 -11%
Total Value Addition 901.81 829.77 763.51 72.04 9% 66.26 9%
Equity Dividend 158.88 119.16 198.6 39.72 33% -79.44 -40%
Corporate Dividend
31.34 22.98 36.83 8.36 36% -13.85 -38%
Tax
The cost of goods sold (raw materials, power and fuel cost) has increased from 3% in 2017-
2018 to 7% in 2018-2019 which means that the cost of production is increasing.
The other operating expenses like selling and administration has decreased from 11% in
2017-2018 to -2% in 2018-2019 which mean the sales of the company has reduced and the
expenses related to selling has also been reduced.
Net profit of the company has however reduced from negative 11% to negative 1%.
Which indicates that the company is trying to revive from the negative profit and convert
it into the higher profit but that will require some changes in the company’s policy.
Income
2,483.27 2,364.27 2,341.28 100% 100% 102%
Sales Turnover
Excise Duty 0 10.28 39.57 0% 0% 2%
Net Sales 2,483.27 2,353.99 2,301.71 100% 100% 100%
Other Income 36.39 30.24 45.78 1% 1% 2%
Stock Adjustments 14.47 10.48 13.2 1% 0% 1%
Total Income 2,534.13 2,394.71 2,360.69 102% 102% 103%
Expenditure
Raw Materials 894.93 835.26 812.39 36% 35% 35%
Power & Fuel Cost 22.18 17.82 14.51 1% 1% 1%
Employee Cost 237.29 215.94 194.96 10% 9% 8%
Selling and Admin
398.6 404.9 365.78 16% 17% 16%
Expenses
Miscellaneous
243.75 191.1 188.25 10% 8% 8%
Expenses
Total Expenses 1,796.75 1,665.02 1,575.89 72% 71% 68%
700.99 699.45 739.02 28% 30% 32%
Operating Profit
PBDIT 737.38 729.69 784.8 30% 31% 34%
Interest 19.29 33.17 57.62 1% 1% 3%
PBDT 718.09 696.52 727.18 29% 30% 32%
Depreciation 318.04 305.31 304.67 13% 13% 13%
Profit Before Tax 400.05 391.21 422.51 16% 17% 18%
PBT (Post Extra-ord
400.05 391.21 422.51 16% 17% 18%
Items)
Tax 91.25 79.72 75.54 4% 3% 3%
Reported Net Profit 305.24 309.52 346.37 12% 13% 15%
Total Value Addition 901.81 829.77 763.51 36% 35% 33%
Equity Dividend 158.88 119.16 198.6 6% 5% 9%
Corporate Dividend
31.34 22.98 36.83 1% 1% 2%
Tax
The cost of goods sold (raw materials, power and fuel) is seen to be stable because the
change is very minimum which can be justified.
The other operating expenses like selling and administration expenses is seen to be
fluctuating by increasing and decreasing trend.
Percentage of net profit is decreasing from 15% in 2017 to 13% in 2018 to 12% in 2017
which clearly the company is not able to make higher profits and somewhat in profit
declining phase.
Mar '19 Mar '18 Mar '17 Differcence Percentage Difference Percentage
Mar '19 Mar '18 Mar '17 Differcence Percentage Difference Percentage
Application Of Funds
Less: Accum.
202.16 138.8 79.41 63.36 46% 59.39 75%
Depreciation
Capital Work in
36.33 30.02 19.94 6.31 21% 10.08 51%
Progress
Cash and Bank Balance 110.67 21.55 8.53 89.12 414% 13.02 153%
Total Current Assets 466.46 275.43 211.86 191.03 69% 63.57 30%
Loans and Advances 249.86 213.76 128.64 36.1 17% 85.12 66%
Total CL & Provisions 464.29 347.27 593.71 117.02 34% -246.44 -42%
Net Current Assets 252.03 141.92 -253.21 110.11 78% 395.13 -156%
The percentage change and absolute change of gross profit are negative. In 2017-
2018 it was negative 6% and in 2018-2019 it was negative 3%
Long liabilities is decreasing from 66% in 2017-2018 to 17% in 2018-2019 which
means the downsizing of the business. The company is contracting in worth.
The reserves is decreasing from 15% in 2017-2018 to 4% in 2018-2019 which
indicates that the funds of the company is decreasing.
RATIO ANALYSIS
RATIO INTERPRETATION
CURRENT RATIO:
Interpretation: The net profitability ratio or the net profit ratio the company has slightly decreased
to 12.29 in the year 2019 from 13.14 in 2018. This indicate the is not making more of profit rather
is on declining profit phase. So it has to revise the marketing plan and strategy of the company.
CONCLUSION
By the study of the financial statement of Emami Ltd, and interpreting the common size,
comparative and ratio analysis we can come to conclude that the overall profitability of the
company has not been increased rather facing a steep downfall which may also be the sign of
recession approaching. The company should reframe the strategy and policies in order to increase
the profit and reduce its extra and non-operating expenses.
REFERENCES