Project Report On Comparative Analysis of Financial Performance of Dabur India Limited FOR THE PERIOD 2008 TO 2013

Submitted for the partial fulfillment of the Award

of

BACHELOR OF BUSINESS ADMINISTRATION DEGREE

(Session: 2012 - 2015)

SUBMITTED BY
YAMINI SAINI Enrollment No. 09750601712

UNDER THE GUIDANCE OF

MRS. DEEPTI GAUR

NEW DELHI INSTITUTE OF MANAGEMENT 61,TUGHALAKABAD INSTITUTIONAL AREA, NEW DELHI-62

AFFILIATED TO:

GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY

ACKNOWLEDGMENT
There is always a sense of gratitude which one express to other for the helpful so needy services they render during all phrases of life. I would like to express my gratitude towards all those who have been helpful to me in getting this mighty task to a successful end.

With the deepest sense of esteem and gratitude, I express my sincere thanks to MRS.DEEPTI GAUR, under whose able guidance I was able to learn much and successfully complete my project.

I would take this opportunity to thank all my family members for their help & suggestions during the course of project work.

I am also thankful to all my friends who gave me constant & continuous inspiration to complete this project.

YAMINI SAINI

CERTIFICATE
This is to certify that YAMINI SAINI has successfully completed the Research project titled Ratio Analysis of Dabur India as the partial fulfillment of the requirement for the award of degree of Bachelor of Business Administration (BBA) by Guru Gobind Singh Indraprastha University, batch 2012-15.

To best of my knowledge the report is original and has not been copied or submitted anywhere else. It is an independent work done by her.

MRS.DEEPTI GAUR (FACULTY GUIDE)

TABLE OF CONTENTS
CHAPTER.
CH: 1

PARTICULAR
INTRODUCTION TO THE STUDY 1.1 Brief Overview of the study 1.2 Objectives of the study 1.3 Scope and significance of the study 1.4 Limitations of the study RESEARCH METHODOLOGY 2.1 Research Design 2.2 Research and presentation tools used INDUSTRY OVERVIEW 3.1 Past, Present & future trends 3.2 Major Players of Dabur India COMPANY PROFILE 4.1 History 4.2 Mission, vision & objectives of study 4.3 Organizational structure/ Management Hierarchy 4.4 Products and services offered 4.5 Future plans THEORETICAL PERSPECTIVE (An introduction to ratio analysis) FINDINGS & ANALYSIS

PAGE NO.
6-10

CH:2

11-13

CH:3

15-18

CH: 4

19-28

CH:5

29-32

CH: 6

33-44

CH: 7

CONCLUSIONS AND RECOMMENDATIONS ANNEXURE BIBLOGRAPHY

45-48

CHAPTER 1- INTRODUCTION TO THE STUDY

1.1: BRIEF OVERVIEW OF THE STUDY

Financial statements as the major means through which firms present their financial situations to stockholders, creditors, and the general public. The majority of firms include extensively financial statements in their annual report, which receive wide distribution. A financial statement is a compliance of data, which is logically & consistently organized according to accounting principle. It is proposed to convey an understanding of some financial aspects of a business firm. It may show a position at a moment in time, as in case of a balance sheet, or may reveal a series of activities over a given period of time, as in case of an income statement. 1.2 : OBJECTIVES OF THE STUDY To analyze the financial performance of Dabur India Ltd. Projection of financial performance of the company for the last five years.

To measure the overall performance and effectiveness of Dabur India Ltd- Using Profitability Ratios. To measure the efficiency of Dabur India Ltd- Using Activity Ratios. To measure the Dabur India Ltd. Ability to meet the interest cost and repayments schedules of its long term obligations- Using Solvency ratios. To measure the contribution of financing by owners as compared to Financing by outsiders- Using ratios of Capital Structure.

To provide suggestions for improving the financial performance.

1.3- SCOPE AND SIGNIFICANCE OF THE STUDY The scope of the study is limited to collecting financial data published in the annual reports of the company every year. The analysis is done to suggest the possible solutions. The study is carried out for 4 years (2008 13). Using the ratio analysis, firms past, present and future performance can be analyzed and this study has been divided as short term analysis and long term analysis. The firm should generate enough profits not only to meet the expectations of owner, but also to expansion

1.4 LIMITATIONS TO THE STUDY reports of company that gives only limited information regarding performance of the company. Analysis is only a means and not an end itself. The researcher has to make interpretation and show his own conclusion. Financial statements are prepared on the basis of certain accounting concepts and conventions any change in the method or procedure of accounting limits the utility of financial statement. The data taken for analysis covers only a period of 2008-2013, so study is about past only, it needs not be indicative of future. Time is major limiting factor of study. It is not possible to analyze all the aspects in details within time allowed because of lack of time; the study does not cover the areas relating to industrial analysis and economic growth of Bharat Oil Company.

CHAPTER 2RESEARCH METHODOLOGY

2.1- RESEARCH DESIGN

Analytical research design is used in this study, which means the researcher has to use the facts and information already available and analyze these to make a critical evaluation of the material. 2.2 TYPES OF DATA

There are two types of data (1)PRIMARY DATA (2)SECONDARY DATA

Primary and Secondary Data

Secondary data is information that has already been collected and is usually available in published or electronic form. Secondary data has often been collected, analyzed, and organized with a specific purpose in mind, so it may have limited applications to specific market research.

However, some of the advantages of using secondary data for market research include both cost and time savings. Data that has been published by government agencies is readily available and free of charge, while data collected and analyzed by private companies may require permission for use. Secondary data can be found through company reports, government agencies such as USDAs Economic Research Service (USDA-ERS) and Agricultural Marketing Service (USDAAMS), newspaper articles, Extension publications, etc. Further information on secondary data can be found in the additional resources section at the end of this fact sheet, as well as in fact sheet WEMC FS#8-08, Estimating Market Potential Using Published Data: A Trade Area Analysis Example included in this publication. Primary data is collected specifically to address the problem in question and is conducted by the decision maker, a marketing firm, a university or Extension researcher, etc. Unlike secondary data, primary data cannot be found elsewhere. Primary data may be collected through surveys, focus groups or in-depth interviews, or through experiments such as taste tests.

The information of the present study has been collected from Secondary data sources. Secondary data was obtained from the Havells India Ltd Annual Reports, audit reports, brochures and company website.

The data type here use is secondary

2.2- RESEARCH AND PRESENTATION TOOLS USED

Ratio analysis Statement of Working Capital

CHAPTER 3INDUSTRY OVERVIEW

3.1- PAST, PRESENT AND FUTURE TRENDS

Dabur India Limited is the fourth largest FMCG Company in India with Revenues of US$ 910 Million (Rs 4110 Crore) & Market Capitalisation of US$4 Billion (Rs 20,000 Crore). Building on a legacy of quality and experience for over 125 years, Dabur is today Indias most trusted name and the worlds largest Ayurvedic and Natural Health Care Company. Dabur India's FMCG portfolio includes five flagship brands with distinct brand identities -- Dabur as the master brand for natural healthcare products, Vatika for premium hair care, Hajmola for digestives, Ral for fruit-based beverages and Fem for instant fairness & skin care.

3.2- MAJOR PLAYERS AND THEIR RESPECTIVE MARKET SHARES

The Board comprises of:

Chairman MR.ANAND BURMAN

Whole Time Directors

Vice-Chairman MR.AMIT BURMAN

MR. P.D. NARANG

MR.SUNIL DUGGAL

Non Whole Time Promoters, Directors

MR. MOHIT BURMAN

MR. SAKET BURMAN

Independent Directors

MR.ALBERT WISEMAN PATERSON

MR.P. N. VIJAY

MR.R.C BHARGAVA

DR.S. NARAYAN

DR.AJAY DUA

S.K. BHATTARCHARYA

CHAPTER 4COMPANY PROFILE

4.1- HISTORY

In 1884 birth of dabur, In 1896 setting up a manufacturing plant, In early 1900s ayurvedic medicines,In 1919 establishment of research laboratories, In 1920 expands further, In 1936 daburindia (dr.s. k burman) pvt ltd, In 1972 shift to delhi, In 1979 sahibabad factory/ dabur research & dev centre (DRDC), in 1986 public limited company, In 1992 joint venture with aarolimen of spain, In 1993 cancer treatment,In 1994 public issues, In 1995 joint ventures, In 1996 3 separate divisions, In 1997 foods division/ project STARS, In 1998 professionals to manage the company, In 2000 turnover of Rs 1,000 crores, In 2003 dabur demerges pharma business, In 20005 dabur acquires balsara, In 2006 dabur crosses $2 bin market cap, adopts US GAAP, In 2006 approves FCCB/GDR/ADR upto $200 million, In 2007 dabur foray into organized retail, In 2008 dabur acquires fem care pharma,In 2009 dabur red toothpaste joins billion rupee brand club, in 2010 dabur makes its first overseas acquisition, In 2011 dabur enters professional skin care market, In 2012 dabur india aquires 30- plus from Ajanta pharma

4.2- MISSION, VISION AND OBJECTIVES OF the company

Focus on growing our core brands Across categories, reaching out to new geographies, within and outside India, and improve operational efficiencies by leveraging technology Be the preferred company to meet the health and personal grooming needs of our target consumers with safe, efficacious, natural solutions by synthesizing our deep knowledge of Ayurveda and herbs with modern science Provide our consumers with innovative products within easy reach Build a platform to enable Dabur to become a global Ayurvedic leader Be a professionally managed employer of choice, attracting developing and retaining quality personnel. Be responsible citizens with a commitment to environmental protection Provide superior returns, relative to our peer group, to our shareholders

4.3- ORGANIZATIONAL STRUCTURE

Board of Directors

Management Committee

CEO

Business Unit Heads Health Care Personal Care Ayurvedic Specialist Pharmaceuticals Oncology Foods R&D Quality Control Finance Corporate Communication

Functional Heads Operations Supply Chain Purchases IT HR Packaging

Operational Heads

Workers

4.4- PRODUCTS AND SERVICES OFFERED

Leading consumer goods company in India with 4th largest turnover of Rs.1268.7 Crore (FY02) 3 major strategic business units (SBU) - Family Products Division (FPD), Health Care Products Division (HCPD) and Dabur Ayurvedic Specialties (DASL) 5 Subsidiary Group companies Dabur Foods, Dabur Nepal, Dabur Oncology, Dabur Pharma and Dabur Egypt 13 ultra-modern manufacturing units spread across 4 countries Products marketed in over 50 countries Wide and deep market penetration with 47 C&F agents, more than 5000 distributors and over 1.5 million retail outlets all over India.

(A) MAJOR PRODUCTS AT A GLANCE

Health Care Health Supplements *Dabur Chawanprash *Glucose D *Honey *Anmol Digestives *Hajmola *Hajmola Candy *Pudin Hara *Pudin Hara G *Dabur Hingoli Capsico Red Baby Care *Dabur Lal Tail *Dabur Baby Olive Oil *Dabur Janma Ghunti *Gripe Water *Binaca Tooth Paste OTC Products *Dabur Red Toothpaste *Nature Care Personal care Hair Care- Oil *Amla Hair Oil *Amla Lite Hair Oil *Vatika Hair Oil *Himsagar Hair Care- Shampoos *Vatika Henna Conditioner *Vatika Anti Dandruff Foods Real *Fruit Juice *Activ

Hommade *Cooking Paste *Coconut Milk Lemoneez

Skin Care *Gulabari Oral Care *Dabur Lal Dant Manjan

*Sat Isabgol *Shilajit *Ring Ring *Itch Care *Back Aid *Shankha Pushpi *Dabur Balm *Sarbyna

(B) MAJOR PRODUCTS AT A GLANCE

Ayurvedic Specialties *Dasmularishta *Ashokarishta *Lauhasava *Mahanarayan Tail *Juritap *Madhuvani *Lavan Bhaskar Churna General Product Skin Care *Ulgel *Natural Soaps *New Livfit *Strox *Honitus *Atecard Oral Care *Herbal Toothpaste Hair Care *Vatika Shampoos & Conditioners *Amla Hair Oil Foods *Real Juices *Hommade Food Pastes DR. BURMAN (RUSSIA ) *Health Supplements *Ayurvedic Toothpaste Pharmaceuticals Oncology *Intaxel *Daxotel *Adrim *Kemocarb *Vinelbine *Thalix International Range Health Care *Dabur Chawanprash *Pudin Hara *Hajmola Tablets *Honey *Shilajit

(C)- DABUR GROUP: Strategic Business Units

Health Care Personal Care Foods Global Oncology Ayurvedic Specialties

Dabur Group Companies

Dabur India Limited Dabur Finance Limited Dabur Nepal Pvt. Limited Dabur Egypt Limited Dabur Oncology Plc. Dabur Overseas Limited Dabur International Limited Dabur Foods Limited

(D)- INFRASTRUCTURE AT A GLANCE:

Registered Office
Dabur India Ltd. 8/3,Asaf Ali Road New Delhi-110002

Corporate Office
Dabur India Ltd. Dabur Tower, Kaushambi, Sahibabad Ghaziabad-201010 (U.P), India.

FMCG Business
Sahibabad (U.P.) Baddi (H.P.) Chyawanprash Unit I Hajmola Unit II

4.5- FUTURE PLANS

At Dabur, environment and nature is the lifeline of our business. With a portfolio of Ayurveda and nature-based products, conservation of nature & natural resources is deep rooted in our organizational DNA, and in every aspect of our ever-growing business. We, at Dabur, have not merely incorporated the concept of sustainability into the core of our business but have, in fact, expanded it to encompass our aspirations and responsibilities to the society and to the environment. It is this concept that inspires us to optimize our business performance to tackle the new and growing challenges of environment and technology. It is a concept on which we aspire to build an organization that will continue to increase value for all our stakeholders for generations to come, through intensive focus on Conservation of Energy and Technology Absorption, along with Health, Safety and Environment Protection. Dabur has been undertaking a host of energy conservation measures. Successful implementation of various energy conservation projects have resulted in a 13.8% reduction in the Companys energy bill in the 2008-09 fiscal alone. What was noteworthy was the fact that this reduction has come despite an 8-9% volume increase in manufacturing, and an average 11.7% increase in cost of key input fuels. The host of measures key among them being use of bio-fuels in boilers, generation of biogas and installation of energy efficient equipment helped lower the cost of production, besides reduce effluent and improve hygiene conditions & productivity.

Dabur has also made continuous efforts towards technology absorption and innovation, which have contributed towards preserving natural resources. These efforts include:

Minimum use of water in process by pre-concentration of herbal extract and reduction in concentration time Uniform heating in VTDs by hot water as against steam earlier, resulting in 30% reduction in bulk wastage by using non-stick coating and formulation change Improvement in water treatment plant through introduction of RO (Reverse Osmosis) system for DM water, reutilization of waste water from pump seal cooling and RO reject waste-water management Introduction of water efficient CIP system with recycling of water in fruit juice manufacturing Development of in-house technology to convert fruit waste into organic manure by using the culture Lactobacilus burchi

The Company has achieved a host of significant benefits in terms of product improvement, cost reduction, product development, import substitution, cleaner environment and waste disposal, amongst others.

CHAPTER 5THEORETICAL PERSPECTIVE

5.1: RATIO ANALYSIS

Ratio analysis is one of the popular tools of financial statement analysis. A ratio is defined as The indicated quotient of two mathematical expression and as the relationship between two or more things Usually ratio is stated as percentage i.e., distribution expenses might be stated as 20 percent of sales. Often, however, the ratio is expressed in units, thus sales might be expressed as 20 times inventory. It is a mathematical yardstick that measures relationship between two financial figures. It involves the break down for the examined financial report into component parts, which are than evaluated in relation to each other and exogenous factors. Ratio analysis involves calculation of ratios and then comparing them with some predetermined standards. The standard ratio may be the past ratios of the same firm or industrys average ratio or a project.

(A)- ADVANTAGES:
1. It simplifies the financial statements. 2. It helps in comparing companies of different size with each other. 3. It helps in trend analysis which involves comparing a single company over a period. 4. It highlights important information in simple form quickly. A user can judge a company by just looking at few numbers instead of reading the whole financial statements.

(B)- DISADVANTAGES:
1. Ratio analysis information is historic it is not current. 2. Ratio analysis does not take into account external factors such as a worldwide recession. 3. Ratio analysis does not measure the human element of a firm.

(C)- SIGNIFICANCE:
Ratios facilitate comparison of: 1. One company over time 2. One company versus other companies 3. Ratios are used by: * Lenders to determine creditworthiness * Stockholders to estimate future cash flows and risk * Managers to identify areas of weakness and strength

(D)- LIMITATIONS:

Limited Use of Single Ratio Sometime, we can not compare our ratios with others. For example, we have started new business and our financial results are not still normal. At that time, our profitability ratio will have limited use because there is not any past data of profitability ratios.

Lack of Adequate Standards We could not make standards of all ratios. For example, we can not tell what is rule of them of our net profit ratio because there are lots of factors affect it. In the lack of adequate standards of ratios, we can not give exact comment on the basis of ratio analysis. Inherent Limitation of Financial Accounting Ratio analysis is just like simplification of financial accounting data. But there are lots of limitations of financial accounting which you can read at. All these limitation will be absorbed by ratios. This is the one of the important limitation of ratio. I can say if base is not good, everything will be wrong. If there is small portion of poison in milk, its effect will be in everything what you will make. Changes of Accounting Procedures If accounting procedures will change, our accounting ratio will be changed. At that time, we can not compare our current year ratios with our past year ratios. For example, in past year, we had used lifo but current year, we are using FIFO for inventory valuation. Due to this, figures of closing stock will be different.

Window Dressing Because we have shown our financial data through Window dressing. Our ratios will also be affected from it. Personal Bias This is reality, I saw many CAs who waste their time to optimize different ratios by changing the project financial statements figures for making attractive projects. All these activities are done for getting loan. So, this will make the drawback of ratio analysis. Matchless Different companies uses different accounting policies, so, we can not compare their ratios. Price Level Changes Inflation effect is ignored in calculation of ratios. So, ratio will not give perfect answer in changing of price level. Ratios are not Substitute of Financial Statements Ratio analysis is important part of financial statements analysis. It can never become a substitute of financial statements. We just use it with cash flow analysis, fund flow analysis and other analysis. Wrong Interpretation We can interpretate wrongly. For explaining the effect on company's position with ratios, there is big need of experience. Wrong interpretation will be helpful for wrong decisions. So, it is limitation of ratio analysis that it does not explain all the facts, it has to explain. For a new accounts manager

CHAPTER 6FINDINGS & ANALYSIS

6.1 (A) LIQUIDITY RATIOS CURRENT RATIO = CURRENT ASSET/CURRENT LIABILITIES The ratio is the indicator of the firms commitment to meet its short-term liabilities. It is an index of the concerns financial stability since it shows the extent to which the Current Asset exceeds Current Liabilities. A very high ratio is not desirable which means less efficient use of funds, slow moving stock, and increase in debtors, Cash and Bank balance lying idle. It also means excessive dependence on long-term sources of fund, which are costlier than Current Liabilities and can results in lowering down the profitability of the concern. A very low ratio can mean that the concern is not maintaining adequate Cash balances that can result in Bad Credit Image, loss of Creditors confidence. An ideal ratio is 2:1,which means creditors will be able to get their payment in full.

YEAR 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013

CURRENT ASSET 300.37 300.27 332.89 165.45 187.96

CURRENT LIB. 112.85 129.42 159.86 164.52 238.38

C.RATIO 2.66 2.32 2.08 1.006 .79

350 300 250 200 150 100 50 0 CURRENTCURRENT C.RATIO ASSET LIB.

20082009 20092010 20102011

INTERPRETATION: In 2008-09,2009-2010 and 2010-2011 ratio was 2.66,2.32 & 2.08 resp. which indicate that company has sound financial position. But in the year 2011-2012 and 2012-2013 current ratio goes down to 1.01 and .79 ,which indicate inadequate working capital.

QUICK RATIO= LIQUID ASSET/CURRENT LIABILITIES LIQUIDASSET=S.DEBTORS+CASH+BANK

This ratio is also termed as Acid Test Ratio or Liquidity ratio. This ratio is ascertained by comparing the Liquid asset to Current Liabilities. Prepaid Expenses and Inventories are not taken as Liquid Asset. The ideal Ratio is 1:1. In Dabur the Ratio somewhat less than 1 is also acceptable. YEAR 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 LIQUID ASSET 161.12 141.73 154.24 53.95 59.93 CURRENT LIB. 112.85 129.42 159.86 164.52 238.38 Q.RATIO 1.42 1.09 0.96 0.33 0.25

250 200 150 100 50 0 LIQUID CURRENT Q.RATIO ASSET LIB.

INTERPRETATION:
In the year 2008-2009 and 2009-2010 the liquidity ratio is 1.42 & 1.09 respectively, which is slightly more than the ideal ratio i.e. 1:1, this shows the sound financial position of the concern. But it fell down continuously from 0.96 in 2010-2011, to 0.33 in the year 2011-2012& 0.25 in the year 2012-2013 respectively, mainly due to continuous increase

2008-2009 2009-2010 2010-2011 2011-2012 2012-2013

in current liability & decrease in liquid assets, which may lead to unsound financial position of the concern. The ratio was initially high, as deposits in form of Cash/Bank were high.

DEBTORS TURNOVER RATIO=CREDIT SALES/AVG.DEBTORS AVG.DEBTORS = OPENING DEBTORS+CLOSING DEBTORS 2

Debtors constitute an important constituent of Current Assets and therefore the quality of Debtors to a great extent determines firms Liquidity. Sales to Account Receivable Ratio indicate the efficiency of the staff entrusted with collection of book debts. The higher the ratio the better it is, since it would indicate that debts are being collected more promptly. The ratio helps in cash budgeting since the flow of cash can be worked out on the basis of sales. YEAR 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 CREDIT SALES 1166.46 1163.19 1232.29 1148 1268.70 AVG. DEBTOR 127.93 128.88 118.31 79.36 45.67 D.T.R. 9.12 9.02 10.41 14.5 27.8

1400 1200 1000 800 600 400 200 0 CREDIT AVG. D.T.R. SALES DEBTOR
2008-2009 2009-2010 2010-2011 2011-2012 2012-2013

INTERPRETATION:
The debtor turnover ratio was remains somewhat constant from the year 2008-2009 to 2009-2010. In 2010-2011 the ratio improved as Sales increased while Avg. Debtors declined and was at 10.41 In the year 2011-2012 sale decrease by 6.8% while average debtor decrease by 33% , which reasult in rise in debtor turnover ratio to 14.5.

 CREDITORS TURNOVER RATIO=CREDIT PURCHASE/AVG CREDITORS

In 2012-2013 debtor turnover ratio increase to 27.8, mainly as a reasult of increase in sale by 10.5% while average debtor decrease by 42.5%. There is no ideal ratio. In Dabur the policy they follow is that the Credit given to Debtors should be less than the Credit given by the Creditors to the Company. Since the ratio is on increase it is Positive sign for the company, indicate that collection from debtor is quick & efficient.

It indicates the speed with which the payments for Credit Purchases are made to the Creditors. YEAR 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013
600 500 400 300 200 100 0 CREDIT PUR. C.T.R.
2008-2009 2009-2010 2010-2011 2011-2012 2012-2013

CREDIT PUR. 534.06 534.73 539.73 484.27 559.85

AVG.CREDITOR 62.23 61.75 80.41 97.76 124.35

C.T.R. 8.58 8.65 6.71 4.95 4.50

INTERPRETATION:
In 2008-09 and 2009-10 CTR remained somewhat constant, as there was not muchfluctuations in Credit Purchase and Avg. Creditors. In 2010-11 CTR declined to 6.71, as there was increase in Avg. Creditors, as Average Creditors increased by 30% while Credit Purchase by 1%. In 2011-2012, C.T.R decrease to 4.95 as average creditor increase to 97.76 while creditor reduce to 484.27. In 2012-2013, C.T.R decrease to 4.50 due to increase in average creditor by 27% while credit purchase increase by 15.5%. There is no ideal ratio. In Dabur the policy they follow is that the Credit given to Debtors should be less than the Credit given by the Creditors to the Company. Since the ratio is on decrease it is a Positive sign for the company as it enables them to improve their liquidity by holding payments.

(B) ACTIVITY RATIOS :

FIXED ASSET TURNOVER RATIO=NET SALES/FIXED ASSET
The ratio indicates the extent to which the investments in fixed assets contribute towards sales. If compared with previous periods, it indicates whether the investment in fixed assets has been judicious or not. YEAR 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 1400 1200 NET SALES 1166.46 1163.19 1232.29 1148 1268.7 FIXED ASSET 242.86 244.42 204.65 154.94 191.60 FA.T.R. 4.80 4.75 6.02 7.41 6.62

1000 800
600 400 200 0 NET SALES FIXED ASSET FA.T.R.
2008-2009 2009-2010 2010-2011 2011-2012 2012-2013

INTERPRETATION:
In 2008-2009 fixed asset turnover ratio was 4.80 In year 2009-2010 there was a slight decline in the ratio as with the increase in Fixed Asset & decrease in sales revenue. In the year 2010-11 Fixed Asset Turnover Ratio increased significantly and was 6.02 as sales increased but Fixed Asset declined as in the year 2011-12 there was a decline in BUILDING, PLANT, FURNITURE and OFFICE EQUIPMENTS by 23%, and depreciation increased by 20%. In 2011-12 fixed asset turnover ratio has significantly increase to 7.41 which decline to 6.62 in 2012-13.As the ratio is decline in 2012-13, it is not a good sign for the Dabur, as

it show that fixed investment in fixed assets has not been utilized efficiently as compared to previous year.

(C) LEVERAGE RATIO:

DEBT- EQUITY RATIO=TOTAL DEBT/TOTAL OWNERS EQUITY

TOTAL DEBT=LOAN+LIABILITIES OWNERS EQUITY=SHAREHLDERS FUND-MISC. EXPENDITURE

The DE ratio is the basic and the most common measure of studying the indebtedness of the firm, it indicates the percentage of funds being financed through borrowings. The Debt-Equity ratio is determined to ascertain the soundness of the long-term financial policies of the company. The ratio indicates the proportion of owners stake in business. Excessive liabilities tend to cause insolvency. The ratio indicates the extent to which the firm depends upon outsiders for its existence. It tells the owners the extent to which they can gain benefits or maintain control with a limited investment. The greater the ratio higher is the risk to the lenders and vice versa. YEAR 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 TOTAL DEBT 308.95 342.41 269.87 204.33 287.01 OWNER EQUITY 354.81 396.89 408.69 262.06 332.26 RATIO 0.87 0.86 0.66 0.78 0.86

450 400 350 300 250 200 150 100 50 0 TOTAL OWNER RATIO DEBT EQUITY

2008-2009 2009-2010 2010-2011 2011-2012 2012-2013

INTERPRETATION:
In 2008-09 the ratio was 0.87 which continuously declined for two period and was at 0.66 in the year 2009-10. Decrease in the ratio is mainly due to assets being financed more by shareholders funds then by external equities. Total debt decreased by 21% from 2009-10 to 2010-11 while owners equity increased in the same period leading to fall in debt equity ratio by 23%. In 2011-12 ratio increase to 0.78 mainly due to significant decrease in owner equity by 36% while total debt decrease only by 24%. In 2012-13ratio again increase to 0.86 as owner equity increase by only 27% while total debt increase by 40.5%.

The larger the ratio, the more is the amount of risk assumed by creditors, and the claims of the creditors against the assets of the firm. As the ratio is increasing for the past two year in case of Dabur it is not a good sign for the creditors as well as company.

(D) PROFITABILITY RATIO:

GROSS PROFIT RATIO= (GROSS PROFIT/NET SALES) *100
It is also called as average mark up ratio. The Gross Profit is the difference between sales revenue and the cost of generating those sales. Therefore, the gross profit amount and the gross profit ratio depend upon the relationship between selling price and cost of production including direct expenses. The gross profit ratio reflects the efficiency with which it produces/purchases goods. The gross profit ratio should be analyzed and studied as a time series. YEAR 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 G.PROFIT 558.44 573.91 616.35 564.95 664.88 NET SALES 1166.46 1163.19 1232.29 1148 1268.7 RATIO 47.87 49.33 50.01 49.2 52.4

1400
1200 1000 800 600 400 200 0 G.PROFIT NET SALES RATIO
2008-2009 2009-2010 2010-2011 2011-2012 2012-2013

INTERPRETATION:
The Gross profit ratio for the company is on an increase mainly due to the continuous increase in the Gross profit, which is mainly due to the increase in sales as a percentage of direct expenses is more. A gross profit ratio of 50% means that on every 1-rupee sale, the firm is earning a gross profit of 50paise.

This ratio indicates the degree to which the selling price of goods per unit may decline without resulting in losses from operations to the firm.

6.2(a)THE LIQUIDITY RATIOS

The liquidity refers to maintenance of cash, bank balance, which are easily convertible into cash in order to meet the liabilities as and when arising. So the liquidity ratio study the firms short term solvency and its ability to pay of its liabilities. It should be intuitive to observe that a firm, no matter how profitable it is, cannot continue to exist unless it is able to meet its obligations as they arise. The day to day problems of financial management consists of highly important task of finding sufficient cash to meet current obligations. To the extent that a firm has to make payments to its suppliers before it is paid to for the goods and services it provides, a cash short fall has to be met, usually through the short-term borrowings. The liquidity ratios are devised to keep a track on the extent of the firms exposure to the risk that it will meet its short-term obligation These ratios as a group are intended to provide information about a firms liquidity and the primary concern is the firms ability to pay its current liabilities. The liquidity ratios provide a quick measure of liquidity of the firm by establishing relationship between its current assets and current liabilities. If a firm does not have sufficient liquidity, it may not be in a position to meet its commitments and thereby loose its credit worthiness.

(b)THE ACTIVITY RATIOS

The Activity Ratios are also called the Turnover Ratios or Performance Ratios as they highlight the ability of management to convert or turn over assets of the firm into Sales. Activity Ratios measure the efficiency of a firm in employing the available resources. Such ratio reflects the degree of effectiveness of fund utilization in the business activity. A Turnover Ratio or an Activity Ratio is a measure of movement and thus indicates as to how frequently an account has moved/turned over a period. These Ratios make a comparative study of the level of sales and the investment into various assets accounts. A sharp rise in this ratio may indicate that a company is expanding too quickly, and is allowing sales to increase more rapidly then the underlying asset base. Conversely a reduction in the ratio can indicate a decline in efficiency or fall in demand for the firms product.

(c) THE LEVERAGE RATIOS

The financial position of a company can be studied and analyzed on two perspective i.e. the Short-Term financial position and the Long Term financial position. The Short-Term financial, which is also known as the Short-Term Liquidity position or simply the Liquidity of the Firm has already been discussed with the help of Liquidity Ratio. Leverage Ratio deals with Long-Term financial position, its composition and implications. Leverage indicates of the use a company makes of the borrowed funds to increase the return on Owners Equity. Leverage ratios measures the contribution of financing by owners compared with financing provided by firms Creditors. The proportion of debt capital to the total capital of the firm is usually referred to as Leverage or Trading on the Equity. Since the debt involves firms commitment to pay interest over the long run and eventually to repay the principal amount, the financial analyst, the debtlender, the preference shareholders, the equity shareholders and management will pay close attention to the degree of indebtedness and the capacity of the firm to serve the debt. The more the debt a firm uses, the higher is the probability that the firm may be unable to fulfill its commitments towards its debtlender The ability to obtain and to repay a Long-Term debt often depends on the firms ability to obtain capital from shareholders. Therefore the relation between shareholders equity and creditors equity is evaluated.

(d)THE PROFITABILITY RATIOS

The last group of financial ratios and probably the most often used group of ratios are the Profitability Ratios. The Profitability Ratios measure the Operational efficiency of the firm. There are two groups of persons who are may be specifically interested in the analysis of the profitability of the firm. The management which is interested in overall profitability The Shareholders who are interested in ultimate return available to them. The performance of the firm can be evaluated in terms of its earnings with reference to a given level of assets or sales or owners interest etc.

Profitability ratios based on Sales of the Firm

Profits are a factor of sales and are earned indirectly as a part of sales revenue. So whenever a firm makes sales, it earns profit. But how much? How is the total sales revenue is going to be used for meeting the cost of goods sold, indirect expenses and return to shareholders etc. All this aspect can be analyzed with the help of Profitability Ratio

Profitability ratios based on Assets/Investments

A financial analyst can employ another set of financial ratios to find out how efficiently the firm is using its assets because the profitability of a firm can be analyzed with reference to assets employed to earn a return. Normally, the more the assets employed, greater should be the profits and vice-versa.

Profitability analysis from point of view of Owners

Ultimately the profits of the firm belong to the owners who have invested their funds in the form of equity capital or preference share capital or retained earnings. Therefore the Profitability of the firm should be analyzed from the point of view of owners also.

CHAPTER 7CONCLUSION AND RECOMMENDATIONS

CONCLUSION:
Industry is yet to capture the beverage market in full swing. PackedChyawanprash followed by Amla, Ashwagandha, Hareetaki, Dashmul, Ghrit and several.Other herbs and herbal extracts. The consumers patriotic love for tea and coffee is unfired. Chyawanprash are yet to establish their supplement use in the average householdhere in lays the great opportunities. Within the market, it is safe to conclude that dabur has hitoff rather well with the masses. Dabur has clearly lost it head start advantage and therebyacquiring just 35% of the market share while others enjoy rest of the market share. This couldbe well attributed to dabur successful ATA (Availability, Taste and Affordability) marketingmodule, the attributes most rated by the consumers. Lack of publicity has hampered thegrowth progress of the brand so aggressive advertising is needed to promote Chyawanprashand vatika hair oil brand .The brands such as that of Chyawanprash by vednath, Chyawanprashwith its sonacahndi, Minute- made and also US food giantssDel Monte are ready to hit theChyawanprash market very soon.Vatika hair oil has no major competition except AustralianProduct Tabasco.As a new product so people are not able to digest it yet Dabur is getting 8 crores from Vatikahair oil in which accounts for 4 crores, Lemoneez 1 Crore & others 3 Crores. As the strategiesof the companies keeps on changing, be it in Chyawanprash industry, a company has to create perceptions and cover them into realities. It is an expensive proposition requiring hugeexpenditure on advertising, sponsorships and media. Thus, the ideal company will be the one, which combines the high-end technology withconsumer insight. As 16% of the excise duty is exempted on food products in this budget,many food companies including Dabur got benefited from it. On the analysis of survey it wasfound that target Market of Chyawanprash want quality benefit rather than Price benefit.

RECOMMENDATIONS:
Focus on growing core brands across category: 1. Reaching out to new geographies, within and outside India 2. Improve operational efficiencies by leveraging technology 3. Be the preferred company to meet the health and personal grooming needs of our target consumers with safe, efficacious, natural solutions by synthesizing the deep knowledge of Ayurveda and herbs with modern science. 4. Provide consumers with innovative products within easy reach. 5. Position Dabur Chyawanprash as not more of a medicine but as something, which is necessary for health 6. More initiatives like Dabur ki Deewar to increase brand visibility. It is an initiative to occupy shelf space.

ANNEXURE

BIBLOGRAPHY
BOOKS
Financial Management Financial And Cost Accounting Management Accounting Non-Executive Finance Analysis R. P. RUSTOGI DR. S. N MAHESHWARI M. A SAHAF P. CHANDRA

WEBSITES
www.Dabur.com www.Daburindia.com www.Business.com www.Indiafoline.com