Escolar Documentos
Profissional Documentos
Cultura Documentos
This is to certificate that K. MIR MOHAMMED ALI Register Number: 07UCA2048 of final year B.com (CS) has undergone INSTITUTIONAL TRAINING at NIPPO BATTERIES CO. LTD for the period of 30 days from 01.09.2009 to 30.09.2009 in partial fulfilment for the award of Bachelor Degree in Commerce (Corporate Secretaryship) of the University of Madras.
INTERNAL EXAMINER
EXTERNAL EXAMINER
ACKNOWLEDGEMENT
I sincerely thank my Prof. F. JAWAHAR ALI, M.Com., M.Phil., Associate Professor and Head of the Department for giving me the opportunity to undergo institutional training at NIPPO BATTERIES CO. LTD. I am thankful to MR. A.M. ABID BASHA, M.Com., M.Phil., MBA, DCA for his kind and valuable guidance in my work to completing this project work. I am very thankful to my respectable department professors.
1. 2. 3. 4. 5.
Mr. K.S. Mohammed Akmal, M.Com., M.phil., Dr. Syed Abdul Hameed, M.Com., Ph.D., Mr. S. Abdul Rasheed, M.Com., M.Phil., Mr. K. Sathyanarayanan, M.Com., Dr. S. Thothadri, M.A(Corp.Sec) M.Phil., A.C.S. (Inter), Ph.D., Mr. M.Ansar M.C.S, M.Phil., P.G.D.B.M., Mr. A. Siddique Ali, M.A., B.L., Mr. Syed Shakir Razvi, M.Com., M.Phil.,
6. 7. 8.
For helping me to complete this project. Secondly I would like to thank all the officials and employees of the NIPPO BATTERIES CO. LTD, for helping me and giving me the necessary information in the data with value support and timely help. I thank all of them who have helped me in supporting and gave me the necessary, co-operation to complete my project successfully.
requirements of the company. The company was walked away with the Management Excellence Awards Silver and Gold from MEI, Japan. Nippo celebrated is 25th Anniversary in 1998 and continues its tradition of providing world class products to its customers. Brand building has been a part of advertising exercise over the last few years, where leading celebrities like Rahul Dravid and Govinda have been engaged to campaign for Nippo across the country. Besides using the electronic media. a lot of outdoor activities through hoardings, well painting and mobile media like buses have been utilized extensively for Nippo.
Landmark cumulative production figure of 7000 million batteries crossed in April Initiation of TPM and TQM activities Launch of Shakti Vision 2003 Cumulative production crosses 6000 million Bronze award in PR contest from MEI, Japan for the corporate film, POWERING AHEAD Launch of Nippo Premium Gold, India's first mercury free battery
1998 1997
Silver Jubilee celebrations Mr. Yasuda, President, MBI and Mr. Kaiikawa visit INNCO for the Silver Jubilee celebrations Initiation of ISO 14001 Installation of 2nd high speed 3D line at Tada Introduction of BF 103 torch Nellore picks up 'Best Union Award' again Cumulative production crosses 5000 million Receipt of ISO 14001 certification Nippo Batteries Ltd. becomes the first Indian battery company to receive the ISO 9001 and ISO 14001 certifications
1996
Visit of Junior Matsushita, Mr. Masayuki Matsushita to India Introduction of 5 day week at HO and factories ISO certification for Nellore and Tada factories and Head Office
1995
Management Excellence Gold Award from MEI, Japan Launch of FF 300 Sleek torch light Cumulative production crosses 4000 million Nippo Batteries again - receipt of first prize at the 'Horticulture Show' conducted by Andhra Pradesh Government More awards, for 'Best Safety' and 'Good Housekeeping' from Andhra Pradesh Government Initiation of ISO 9000 accreditation process Launch of Vision 2000 Launch of high performance batteries in UM-3 and UM-1 segments Nellore picks up 'Best Union Award' from Andhra Pradesh Government >
1994
Nippo Batteries walks away with the first prize in the State level Garden Festival,
organised by the Andhra Pradesh Government Management Excellence Silver Award from MEI, Japan 1993 1992 1989 1988 1986 1985 1984 1983 Launch of Nippo Gold (3D) at Tada plant 20th Anniversary celebrations Visit of Mr. S. Dounishi, then President, MBI, Japan First copies of Nippo News are out Achievement of a cumulative production of 3000 million Launch of BF 102 torch light Andhra Pradesh Government confers Best Management Award on Nippo Batteries Nippo crosses the 2000 million production mark Effluent treatment plant at Nellore commences operation Commissioning of 3U hi-tech line at Tada plant Achievement of cumulative production of 1000 million batteries Nippo picks up 'Productivity Award' from Andhra Pradesh Government Celebrations marked 10th anniversary Visits of Mr. Kurata, then Managing Director, MBI and Mr. Azuma, then President, MBI Nellore plant picks up 'Good Housekeeping Award' from Andhra Pradesh Government 1982 1981 1980 1979 1978 1977 1976 1976 1975 1973 1972 Mr. Yamashita, then President, MEI and CMD Obul Reddy meet India's then Prime Minister Smt. Indira Gandhi A million batteries exported to the USSR Grant of IS:8144 for 1U Inauguration of our new factory at Tada, Andhra Pradesh. IP cells go into production Installation of workshop with top-of-the-line maintenance equipment Production commences for the new line of UM-3U cells UM-3U goes into production Introduction of the pilfer proof top seal, now an industry standard Nippo 1P cells receive IS:8144 recognition Production commences for UM (1S) Nippo goes international. The first export consignment leaves for Yemen Followed by Nippo Special (1P), an industry first. Its special quality paper outer jacket made it easily affordable for the rural market Nippo Hyper (2U) goes into production Production commences for Nippo Hyper (1U) INNCO is established
1970
Mr. P. Obul Reddy, CMD obtains a letter of intent from MEI, Japan, expressing an agreement in principle for a collaboration with Nippo Batteries.
Products of Nippo
Batteries
Nippo has wide range of Zinc Carbon/Manganese Batteries in sizes of R6(AA), R14(c), R20(D), R3(AAA).Nippo Batteries was the first to launch Zinc chloride heavy duty batteries in India. And Nippo has the ISI mark on its products manufactured in INDIA. Nippo is also the first company to launch environment friendly no mercury added batteries in AA segment.
Power Station
Nippo next generation charges are here to 'Recharge your batteries, literally. The innovative 'Trickle Charge' technology, 'Refresh' feature and an attractive LCD display.
Torches
Nippo has wide range of Torches suitable for Indian needs. Nippo was the first company to launch Diamond cut reflector in durable polypropylene torches. Nippo also launched unique Radium Torches which can be easily identified in Dark. Recently Nippo has launched energy saving torches is that they don't have switch/bulb. The LED life is about 1Lakhhours.
INDUSTRY PROFILE
Prospects of the Indian Electric/Electronic Industry
Like every other industrial sector in India, the Indian Electrical/Electronics Industry too is slowly emerging from out of its "protective cover". For far too long has Indian Industry remained
shackled and consequently inward looking. Over the past fifty years there was no exposure to global players and competition, with the result that the Industry grew up in a sheltered environment, dependent on the Government for everything, from licenses to protection to tariffs. Each one of these interventions was aimed at securing protection for oneself and ensuring growth of ones own organization at the cost of industry and the nation at large. Lack of global competition encouraged a "cost plus" approach, where every conceivable cost increase was passed on to the customer. There was thus no motivation to reduce costs. With deli censing, decontrol and deregulation, Indian Industry has suddenly been exposed to global competition. Since last decade, India has witnessed what global players have achieved and what they are capable of achieving. We are becoming aware of competition on our turf. In this scenario, every company complains of increased competition, lower order books and shrinking margins. The Indian Electrical/Electronics Industry is of course further besieged by the fact that there is a dearth of business on account of lack of investment in the power infrastructure. Many organizations in this industry are looking overseas to develop the export markets owing to reduced demand at home. At the outset, it must be stated that the reduced domestic demand is at best a temporary phenomenon. The power sector in India is bound to grow and this will undoubtedly boost demand from the Utilities, quite apart from the industrial demand which will continue to grow with increased industrial output. The poor financial health of the SEBs is however a damper that cannot be wished away in the short term. This will continue to plague corporate in the Electrical Industry, until the SEB restructuring and unbundling brings a turnaround in the medium term.
The global electrical and electronics industry centers around various adjunct sectors. Few of them are Electronic Components, Computer & Office Equipments, Telecommunications, Consumer Electronics as well as Industrial Electronics.
Future Prospects
The domestic market in India is itself large, and one must firstly satisfy this market with products that meet international quality standards. With increasing globalization, every international player is now operating in India, providing goods and services complying with international quality. Once we deliver high quality products and services within the domestic market, accessing the international market for exports should not pose a serious challenge. The Electrical/Electronics Industry in India is growing to its full potential in the coming years and no doubt that India will soon come to be recognized for quality products and services which in turn, will bring this industry to a position of true leadership. Indian electrical industry has grown because of government's thrust on it and also due to overall economic growth. It has also reached a stage where the industry has demonstrated its capabilities.
The industry has seen a growth of 20% and should continue at the same level for the next few years.
CODE OF CONDUCT
CODE OF CONDUCT FOR BOARD MEMBERS AND FOR SENIOR MANAGERIAL PERSONNEL OF THE COMPANY (I) INTRODUCTION
This Code for the members of the Board of Directors and for the Senior Managerial Personnel of the Nippo Batteries Co. Ltd. (the Company) helps the Company to maintain the Standard of the Business Ethics and ensure compliance with the legal requirements, specifically under Clause 49 of the Standard Listing Agreements of the Company with the Madras, Mumbai, Hyderabad and National Stock Exchanges. The Code is aimed to prevent any wrongdoing and to promote ethical
(II) APPLICABILITY
The code is applicable to the following persons (the Officers): (a) Members of the Board of Director of the Company And (b) Senior Managerial Personnel i.e. all members of management one level below the Executive Directors including all functional heads. All the concerned are expected to read and understand this Code and to uphold standards set out under this, in his/her day-to-day activities. As the principles set out under this are general in character, Officers should also review the Company's other applicable Policies and Procedures for more specific instructions. In case of any difficulty in interpretation or allied matters This Code is in addition to and not in derogation with any Act, law, rules
(III) DEFINITION
Material Transaction: Every transaction the value of which exceeds Rs.50,000 per annum shall be considered as transaction of the material nature. Interest in Transaction: Interest in any transaction (be a contract or arrangement) either through himself or through any of the following shall be regarded as interest in the transaction: i. Interest through spouse; ii. Interest through son/daughter; iii. Interest through parents or iv. Interest through Son's wife or Daughter's husband. Corporate Opportunity: Corporate Opportunity is an opportunity in which the Company has a right/ property / interest or expectancy or opportunity is the one, which injustice should belong to the Company. They may contact the Company Secretary.
the Code or any other Policy of the Company. Disciplinary action may include immediate termination of employment or cessation of the office at the Company's sole discretion. Where the Company has suffered a loss, it may pursue its remedies against the person(s) responsible.
Board of Directors
JUSTICE MR.S.NATARAJAN Chairman MR.P.DWARAKANATH REDDY Managing Director MR.P.OBUL REDDY Director MR.R.P.KHAITAN Joint Managing Director MR.V.R.GUPTE Director DR.S.A.DAVE Director MR.JUNICHI GOTO Director MR.HIROSHI SUGIMURA Director MR.M.MORIKAWA Director MR.H.AOTA Director
CLIENTS
Besides being one of India's largest selling battery manufacturers, we also supply to leading companies and Original Equipment Manufacturers. This solid customer base contributes to and enhanced brand image besides aiding further sale through the replacement market. Some of the corporate customers are: OEM Customer List
Ajanta Clocks LGTV Konka TVs Salora TVs Crown TVs Grundig TVs Webel Nicco Genus Godrej Sara Lee Ltd Godrej Consumer Ltd Institutions Indian Armys CRPF Indian Space Research Orgn. All India Radio ONGC Bokaro Steel Plant Salem Steel Plant Hindustan Lever Ltd. Neyveli Lignite Corpn Tamil Nadu State Transport Corpn. Hindustan Photo Films Ltd. Indian Navy Coast Guard Indian Railways Madras Refineries Ltd. Kudremukh Iron Ore Co. Ltd. Rourkela Steel Plant Durgapur Steel Plant Andhra Pradesh Police Hindustan Aeronautics Ltd Bharat Heavy Electricals Canteen Stores Department Indian Airforce Nuclear Power Corp. Indian Airlines Madras Fertilizers Ltd. Vishakapatnam Steel Plant Bhillai Steel Plant Konica Colour Lab Tamil Nadu Police Port Trusts Hindustan Newsprint Ltd. National Thermal Power Corp.Ltd Titan Clocks Videocon TVs Samay Clocks Videon TVs Bestavision TVs Cas Weighing Equipments Goldwin Technologies Velson Plastics Havells Onida TVs Matsushita TV and Audio Thomson TVs Beltek India Ltd. Rewa Clocks Air Vision Sartime Clocks Champion Trading Co Wipro
SHAREHOLDERS
Share Holders As per the revised Clause 49 of the Listing Agreement with the Stock Exchanges, the Board had desiginated MR.P. Dwarakanath Reddy, Managing Director as Chief Executive Officer (CEO) and Mr. M. Sankara Reddy, General Manager, Accounts & Finance as Chief Financial Officer (CFO) for complying with the Corporate Governance norms.
AWARDS
Over the years, just about every aspect of the operations at Nippo Batteries Co. Ltd., (Formerly known as Indo National Limited) has received recognition by way of awards, accolades and certification. Besides a number of awards for housekeeping, safety, productivity and management, the company has also received the Management Excellence award from MBI, Japan consecutively
for two years. Some of the awards are mentioned below. AOTS CUMI 5S Excellence Award 2006 AC Nielsen Award Best Management Award Award for Excellence in Environment & Management 2005 Awards from MEI Japan Award for Excellence in Environment & Management 2002 Industrial Large Scale Award NIPM Award Industrial Peace & Harmony Award Productivity Award Best Union Award
RECEPTION
A lady staff is placed who provides information and help to those who seek her guidance. She operates the telephone board and connects the incoming calls to those personnel to whom so ever it may concern.
LOBBY
There is a small lobby for those who like to meet the managerial personnel. The lobby as a long so for the visitors to sit while they wait for their appointment.
CABINS
There are wooden cabins with glasses and screens for the managerial personnel. Each department manager is housed in separate cabins.
TABLES
The tables are broad and spacious for the staff to do their work comfortably. They have drawers in their own tables to keep their personnel and belongings under lock and key.
CHAIR
Chairs are designed well to keep the company staff at the table during office hours.
GLASS WINDOW
All around the office there are large sliding windows which provide good natural light and ventilation.
COMPUTERS
The systems have necessary software for the personnel to work quickly there is a good backup UPS capacity of 2hours battery backup.
XEROX
There is a Xerox machine which helps to duplicate the copies easily and makes the work easier.
FAX
A fax machine helps to send and receive a company document quickly and easily.
TELEPHONE
The main telephone is kept at reception and the receptionist gives the incoming calls to those personnel to whomever it may concern with an intercom facility.
SCANNER
There is a scanner which helps to scan the documents easily.
MAINTENANCE
All the machines and equipments are regularly checked and kept in good condition.
COMMUNICATION METHODS
Communication methods process passing information and understanding from one person to another.
INTERMISSION COMMUNICATION
Within the federations there are three methods: Facts to face work. Intercom facilities. Through office assistants. External communication is also available through telephone, telex, fax, through personal visit and through postal etc.,
SANITARY
The sanitary system in the company is a common aspect in all the organizations. As the sanitary condition of the company is clean and is maintenance of the work is done often by maintenance staff. The sanitary system is separate for gents and ladies.
First of all its an excellent opportunity to undergo training in Nippo Batteries Co.Ltd. During the training period I came to know the companys History, Products and functions of the various departments of the company. I had an opportunity to meet well trained and skillful employees of the company. The first day was spent on introductions. The first week of training was very interesting, where I have been asked to work in the Accounts Department. I filled the name and address of suppliers, date of invoice and amount of invoice. I verified all the Vouchers and records of the company. I was given a Computer where I cross checked whether the invoice number serial number and company names in the system matched with records or not. During the second week I was taken to the sales department where the person in charge explained various marketing strategies used by the companies to sell their products. During the third week I was taken to the HR department where the person in charge explained the organization structure of the company. During the fourth week I was asked to speak with the customers of Nippo Batteries Co. Ltd to get the feedback about the products. I prepared a report about feedback and submitted to the PR Department. Finally, they gave me the three years annual reports and balance sheet of the company. This helped me to understand the performance of the company for past three years. I hope and believe that this one month training programme will be of immense use in all future endeavors.
FUNCTIONS OF DEPARTMENTS
SECRETARIAL DEPARTMENT
This department is headed by the company secretary. The main work of this department is to deal with shares of the company and proceeding there upon.
DEFINITION OF SECRETARY
According to Sec.2[45] of the companies act in 1988 secretary means a company within the meaning of sec.2[1][c] of the company secretaries Act 19980 and includes any other individual possessing the prescribed qualifications and appointed to perform the duties which may be performed by secretary under this act any other ministerial or administrative duties.
To maintain register of investments held by the company in the name of its nominees. To sign any documents or proceedings requiring authentication by the company. To deliver for registration return of allotment. To give native of increase in share capital or of members of register. To deliver for registration particulars of mortgages and charges to the register. File with the registrar a duly verified declaration for obtaining the certificate of commencement of business.
To sign the return. To send notice of general meeting to member. To prepare minutes of every meetings. To sign the annual accounts of the company.
To send notice of meeting of the board of directors. To assist in preparing the statement of affairs in a winding up for the purpose of submitting it to the intimidator.
Instrument of transfer
A company shall not register a transfer of shares unless a proper instrument of transfer duly stamped and executed and signed by the north the transfer by north the transferor and the transferee is delivered to the shares registrar. The share certificate along with a requisition letter has to be accompanied with the instrument of transfer.
above details including the share certificate number folio number and the no shares transferred. Specimen The signature of the transferor is checked with that of in the specimen book. If there is any difference between the signature in the transfer from and the signature in the specimen book a letter is sent to the transferor as intimation.
Transfer
After all the procedures are over the transfer entry is made as the back of the share certificate and duly signed by the official of the shares registry.
Certificate
Certificates are then sent to the company for the signature of company secretary and also for the further enquire.
TRANSMISSION OF SHARES
Transmission of shares takes on the death or insolvency of an individual member. The legal representative or official assignee can valid; transfer the share to another person even through he himself is not a member or keeps the shares with him. In case of transmission of shares no instruments of transfer in necessary. The person to whom the shares are transmitted by law should make an application to the registrar for registration of shares registration of shares in him name. the application should also accompany registration of shares registration of shares in his name. The application should also company with the Death Certificate of the person in whose name the share was registered before and whose death resulted in transmission.
PROXY
A proxy is an authority to represented and vote for another person at a meeting. A proxy must be in writing and signed by the appointed person. A proxy has no rights to speak at the meeting. There is not entitled to vote expect on a poll. A proxy is revocable. A member of a private company is not entitled to appoint more than one proxy and member of a company not having share capital cannot appoint a proxy.
SHARE CERTIFICATE
The share certificate is document of the company. The share certificate under the seal of the company, specifying and shares held by the members. It is declaration the company to all worked that the person to whom name the certificate is made out is shareholder Of the company. The company must have the shares ready for delivery within three months of allotment of shares of within two months after the application for registration of the transfer of any such shares. At least two directors and the secretary shall sign it. The company may renew a share certificate or issue a duplicate if its satisfied that shareholder had either lost the share certificate of has been or mutilated or torn.
SHARE WARRANT
A share warrant is as document issued by a company stating that is bearer is entitled to the share specified therein. It is transferable by a mere delivery. It is a negotiable instrument. The share warrant is issued only on share that are fully paid-up. The bearer of share warrant, subject to the articles is entitled on surrendering the same is a share warrant is transferable by mere delivery coupons are attached to each warrant is bearing the dated on which the dividend will be paid to the person who produces the appropriate coupon.
DIVIDEND
One of the main objects of a commercial enterprise is to earn profits, which are distributed along shareholder by way of Dividend. The director decided what dividend should be recommended to be paid. A resolution passed in the meeting of the director recommending a certain related of dividend to be paid person whose names appear on the register of member on a specified date namely the date for the closure of the transfer books etc and authorizing the secretary to make necessary arrangements either the payments of dividend.
DIVIDEND WARRANT
Dividend warrant for different payments can be distinguished by means of a number of bold figures printed in a prominent position on warrant. Large companies use computer to fill in the dividend warrant. The secretarys signature will be printed.
INTERIM DIVIDEND
Those are dividends, which are declared in between to annual general meeting of the company. The articles of the company may empower the director declaring the dividend considering the financial position. An interim dividend is usually paid for six months. The interim accounts are prepared to obtain a rough idea regarding profit in the interim period.
ACCOUNTS DEPARTMENT
Finance is the soul of business its essential factor. It is the axle round which rotates the wheel of the modern industry. In modern times finance is important in business activity. In initial stages it makes production possible and later on it facilities distribution process. The vary form and size of business is decided by the availability of finance. Finance is that administrative area of set of administrative function in an organization may have the means to carry out its objective as satisfactory.
A wide range of factors has a bearing of a firms capital structure. The following are the important.
VARIABILITY OF SHARES
If the sales revenue of a firm stable it can go in for a higher level of department in its capital structure on the other hand if the sales of a firm are highly fluctuating its dent capacity is limited.
PROFIT ABILITY
We often find those firms, which are highly profitable, use relatively little debt in their capital structure.
TAXES
The interest on debt capital as we have seen in tax - deductible. Hence higher the tax rate greater the incentive to employ debt capital.
ATTITUDE OF LENDERS
Since the availability of debt capital depends on the willingness of lenders to provide it the attitude of lenders is an important consideration in the capital structure decision.
OPERATING LEVERAGE
In general, a firm characterized by a high degree of operating leverage has a somewhat limited debt capacity because it may increase the risk level or the firm beyond reasonable limits.
GROWTH RATE
Rapidly growing firms need to debt. This is so because the cost of external equity is under pricing and the expenses of issue are higher. Hence such firms lean more on debt capital.
SHARE CAPITAL
Share capital means the capital raised by a company by issue of shares. The word capital in connection with a company is used in several; it may mean the nominal authorized or registered share capital or issued paid-up reserve share capital of the company.
DEPOSIT
Deposits are sum received from the depositor as a pledge or part payment deposits are accepted by IDBI, ICICI and STATE IDUSTRIES CORPORATION OF TAMIL NADU.
FIXED DEPOSIT
Fixed deposits from state industries Promotion Corporation of Tamil Nadu limited and government of Tamil Nadu.
MEDICAL WELFARE
The company takes necessary steps to protect employees and their families from different health hazards. The company had nearly spent about 13lakhs in 94-95 for the medical bill of the employees. The company has also executed many health programs.
PURCHASE DEPARTMENT
The Purchase Departments Consists Of 1. Manager and his Assistants 2. Assistants Consists of Store Keeper As the company manufactures foreign raw materials i.e. IRON AND STEEL and other needed items are ordered through this department, which is in need of it. The purchase manager inurn spent it to the supplier. The supplier has to contact the purchase manager. The main raw materials required for the production of steel are foreign billets and bars of various specification of carbon alloy and stainless,MMF places great emphasis on procuring of steel through stringent inspecting procedures. The companys principal suppliers are:
1. Visehwara iron and steel Ltd, bahdrawathi
1. Determining the credit standing 2. Decide as to whom to grant credit and the extents and terms to which credit is granted. 3. Actual collection The packing of the rods should be doing in a way, which makes transportation and storage of the goods easy, before distribution. The manager should also ensure the goods in transits of any.
PERSONNEL DEPARTMENT
The Company often finds that there has not been close relationship between man and management to the companys expectations due to the fact that the workers strike for their wishes to be fulfilled and the company opposes to do so. In order to keep the workers and management closer to the personnel department is essential for every company. The Indian government too has set up a separate department as human welfare of the workers and the management. The main functions of the personnel department are 1. To look after the welfare of their co-workers 2. To recruit new people 3. To maintain a close relationship between the workers union and management This department consists of 1. Chief administrative officer 2. Typist and assistant The chief administrative officer is responsible in looking after the overall administration of the organizations: He normally interviews the candidates who are suitable to the different jobs. He
maintains and undoes date record of all the employees in the organization and prepares the salary statement after making suitable TDS deduction. He also files the necessary returns which the various government department needs.
PROCEDURE OF RECRUITMENT
1. Preliminary screening 2. Sending application forms 3. Trade tests 4. Written tests 5. Psychological test 6. Interview 7. physical tests 8. on the job tests 9. reference 10. final selection 11. intimation to salary department Intelligence tests Aptitude tests Interest tests Personality tests
WELFARE SCHEMES
The company was to frame different schemes to enrich the workers. The welfare is the remain thing in worker life it motivates employees to work more interests and efficiency in workers in order to avail of those schemer to contribute their best energies and as a result production normally increases approximately by 25 percent.
The marketing manager should also select a corrected and effective way to distribute the companys products.
PERFORMANCE ANALYSIS
INTRODUCTION
Analysis and `interpretation of financial statement with the help of ratios is termed as ratio analysis. Ratio analysis involves the process of computing, determining and presenting the relationship of items or group of items of financial statements. Ratio analysis was pioneered by Alexander Wall who presented a system of ratio analysis in the year 1909. Alexanders contention was that interpretation of financial statements can be made easier by establishing quantitative relationships between various items of financial statements.
An accounting ratio can be defined as quantitative relationship between two or more items of financial statements connected with each other. Arithmetically ratio is a comparison of the numerator with the denominator. The essence of ratio is putting together of two figures to study their relationship. The study is in the form of analysis, interpretation and expression of all the ramifications of the relationship. Ratio analysis is an age old technique of financial analysis. It is the process of determining and presenting the relationship of items and group of items in the financial statement. The information provided by the financial statements in absolute form is historical and static, conveying very little meaning to the users. Accounting ratios are designed to show how one number is related to another and the meaning of such relationships. A ratio is worked out by dividing one number by another number. Accounting ratios measures and indicate efficiency of an enterprise in all aspects.
MODES OF EXPRESSION OF RATIOS Ratios may be expressed in any one or more of the following ways In proportion
In this type of expression the amount of two items are expressed in a common denominator. An example of this form of expression is the relationship between current asset and current liabilities as 2:1.
In percentage
In this type of expression, a quotient obtained by dividing one item by another is multiplied by one hundred to show the relationship in terms of percentage. For example, the relationship between net profit and sales may be expressed as say 25%. As discussed above, ratios can be expressed as (a) proportion, (b) rate or times (c) percentage. Each way of expression may have a distinct advantage over the others. The analyst will choose a particular mode or a combination suitable for a specific purpose.
CURRENT RATIO
The ratio of current assets to current liabilities is called current ratio. In order to measure the short term liquidity or solvency of a concern, comparison of current assets and current liabilities is inevitable. Current ratio indicates the ability of a concern to meet its current obligations as and when they all due for payment.
SIGNIFICANCE
During this financial year 2006-07 the ratio is 1.80. For the year 2007-08 the ratio has increased to 2.90 and for the year 2008-09 it again decreased to 2.54. But it falls short ideal ratio is 2. Though the company can meet its short term liability is not so good.
LIQUID RATIO
This ratio is also called quick ratio or acid test ratio. It is calculated by comparing the quick asset with current liabilities.
YEAR
LIQUID ASSETS
CURRENT LIABILITIES
LIQUID RATIO
SIGNIFICANCE
During the financial year 2006-07 the ratio is 1.56 and for the year 2007-08 it got an increased on 2.40 and for the year 2008-09 is gradually decreased at 2.05. The ratio short less than the ideal ratio 1.
YEAR
EXTERNAL EQUITIES
SIGNIFICANCE
During the financial year 2006-07 the ratio is 0.92 for the year 2007-08 it has decreased to 0.39 and for the year 2008-09 is gradually increased to 0.43. But the ideal ratio is 1. Since it shows outsiders funds are equal to share holders funds it is considered to be a quick satisfactory.
YEAR
FIXED ASSETS
LONG-TERM FUNDS
SIGNIFICANCE
In the financial year 2006-07 the ratio is 0.32 for the year 2007-08 it was increased to 0.34 and for the year 2008-09 it got further hiked to 0.37. Hence in all 3 years the ratio is 0.67. Therefore the ratios are not extendable for the companys growth.
PROPRIETARY RATIO
This ratio compares the share holders funds or owners funds and total tangible assets. In other words this ratio expresses the relationship between the proprietary funds and the total tangible assets.
YEAR
SHAREHOLDERS FUNDS
PROPRIETARY RATIO
SIGNIFICANCE
During the financial year 2006-07 the ratio is 0.52 and it has increased to 0.72 and it again decreased to 0.70. The ratio below 50% will be alarming for the creditors .since they may have to loose heavily in the event of company liquidation on account of heavy losses.
This ratio is also known as gross margin or trading margin ratio. Gross profit ratio indicates the difference between sales and direct cost . Gross profit ratio explains the relationship between gross profit and net sales.
SIGNIFICANCE
YEAR GROSS PROFIT NET SALES GROSS PROFIT RATIO 2007 2008 2009 92874 245892 245337 3391943 3169191 3155213 2.74 7.76 7.78
During the financial year 2006-07 is 2.74 and in the year of 2007-08 simultaneously increase to 7.76 and it again increased in the year 2008-09 is 7.78. The increase in gross profit indicates that there is an increase in operational efficiency of the company.
YEAR
NET PROFIT
SALES
SIGINIFICANCE
During the financial year 2006-07 the ratio is 1.77 and in the year 2007-08 is simultaneously increased to 5.05 and it again increased in the year 2008-09 is 5.08. And the reason for the same should be found out 1.
YEAR
SALES
DEBTORS
SIGNIFICANCE
In the financial year 2006-07 the ratio is 9.41 and it decreased in the 2007-08 is 7.89 and it again decreased in the year 2008-09 is 4.83. The higher ratio, the better it is. Since it would indicate that debts are collected more promptly. However this ratio should be compared.
SIGNIFICANCE
During the financial year 2006-07 the ratio is 9.20 and it decreased in the 2007-08 is 7.47 and it simultaneously decreased in the year 2008-09 is 6.54. Shows that investment in the fixed assets has not brought about commensurate gain.
SIGNIFICANCE
The ratio of the financial year 2006-07 the ratio is 29.11. And during the year 2007-08 it got increased to 31.04 and again during the year 2008-09 it got hiked to 32.97.
CONCLUSION
In the booming electrical sector in India Nippo Batteries is one of the first Indian dry battery company to have been certified with the ISO 9001 and ISO 14001 International Standards and has the ISI mark of quality and all its batteries. It is second largest dry battery in India with 31% market share. One of the highlight for Nippo Batteries is the accreditation with the TUV CERT certificate for quality management systems of RWPVV systems GMDH since 1996. The main aim of the training was to analyze and learn more about the office organization and management of Nippo Batteries is to bridge the gap between theory and practice. This training creates an interest and courage. Thus training gave good practice, knowledge about Public Limited Company.
TIMES
CHART 3 CHART EXHIBITING THE DEBT EQUITY RATIO OF NIPPO BATTERIES CO. LTD DEBT EQUITY RATIO
0 .5 2008 2009
TIMES
2007
CHART 4 CHART EXHIBITING THE FIXED ASSETS RATIO OF NIPPO BATTERIES CO. LTD FIXED ASSETS RATIO
0.38 0.37 0.36 0.35 0.34 0.33 0.32 0.31 0.3 0.29 T S IME
CHART 5 CHART EXHIBITING THE PROPRIETARY RATIO OF NIPPO BATTERIES CO. LTD PROPRIETARY RATIO
T S IME
-2E + 1 5
CHART 6 CHART EXHIBITING THE GROSS PROFIT RATIO OF NIPPO BATTERIES CO. LTD GROSS PROFIT RATIO
200 7
CHART 8 CHART EXHIBITING THE DEBTORS TURNOVER RATIO OF NIPPO BATTERIES CO. LTD DEBTORS TURNOVER RATIO
CHART 9 CHART EXHIBITING THE FIXED ASSETS TURNOVER RATIO OF NIPPO BATTERIES CO. LTD FIXED ASSETS TURNOVER RATIO
CHART 10 CHART EXHIBITING THE FIXED ASSETS TURNOVER RATIO OF NIPPO BATTERIES CO. LTD FIXED ASSETS TURNOVER RATIO