Liquidity & profitability position

INTRODUCTION OF GILLETTE CO.

The Company was Incorporated on 9th February,1988 at Rajasthan. The Company was jointly promoted by House of Poddar Enterprises (HOPE) and Gillette Company, U.S.A. (Gillette).The Company Manufacture stainless steel razor blades. Gillette entered into a foreign collaboration agreement with hope for setting up of a company for the manufacture of stainless steel razor blades in which Gillette agreed to subscribe 24% of the equity capital. The manufacture of razor blades, razors and shaving systems. Gillette is a brand of Procter & Gamble currently used for safety razors, among other personal hygiene products. Based in Boston, Massachusetts, it is one of several brands originally owned by The Gillette Company, a leading global supplier of products under various brands, which was acquired by P&G in 2005. Their slogan is, "The Best a Man Can Get". The original Gillette Company was founded by King Camp Gillette in 1895 as a safety razor manufacturer.

On October 1, 2005, Procter & Gamble finalized its purchase of The Gillette Company. As a result of this merger, the Gillette Company no longer exists. Its last day of market trading - symbol G on the New York Stock Exchange - was September 30, 2005. The merger created the world's largest personal care and household products company. In addition to Gillette, the company marketed under Braun, Duracell and Oral-B, among others, which have also been maintained by P&G.

The Gillette Company's assets were initially incorporated into a P&G unit known internally as "Global Gillette". In July 2007, Global Gillette was dissolved and incorporated into Procter & Gamble's other two main divisions, Procter & Gamble Beauty and Procter & Gamble Household Care. Gillette's brands and products were divided between the two accordingly

PROFITABILITY ANALYSIS OF GILLETTE COMPANY

  • Company continued to moving strong growth during the year end Mar.31.2009. The total sales (net of excise) at Rs. 662.96 crores was up by 12% when compared to Rs.591.72 crores for the corresponding twelve month period ended Mar.31,2008
  • Profit before Tax is Rs.181.82crores is down by 3% when compared to Profit before Tax of Rs.187.65crores for the corresponding period ended Mar.31,2008.
  • Profit after Tax (PAT) for the year is at Rs.113.13 crores.PAT for this year of Rs.14 crores towards the sale of Company's immovable property at Mysore. This PAT is not comparable with the PAT of Rs.117.37 crores of the previous corresponding period, which includes exceptional item of Rs.38 crores on account of financial restructuring and reconstruction and Rs.42 crores on account of aforesaid sale of immovable property.
  • In the Blades & Razors category, Co.grew sales ahead of category growth and its highest ever growth in the past 5 years, helping the Company achieve overall market leadership in the category.Prime success factor is deep consumer understanding and ability to engage with him innovative and world class communication campaigns.
  • In fact,this year, co. campaign came in for praise from some very illustrious quarters. The well known Cannes Advertising Festival, held annually in France and widely acknowledged as the Oscars of Advertising,felicitated Gillettes India Votes: To shave or not campaign with a Gold as well as a Silver Lion. This campaign, widely seen by Indian consumers across television, newspapers, malls and internet, was also recognized by a long list of global platforms, including the Peoples Choice award in Spain, the Asia Marketing Effectiveness awards in Hong Kong, the Mediacom Global awards and, closer home, at the P&G Global Media awards.
  • Vector Plus complemented the fast paced growth of shaving a tension free exercise for millions of men in India. The brand continues to ride high on strategic distribution expansion initiatives and commercial innovations. The outstanding profits for the last quarter of the financial year is indicative of the growth potential and strong performance that the Company can aspire to achieve in the year ahead. An important part of this growth has come from synergies with P&Gs operational and organizational excellence as Gillette continue to benefit from the integration.
  • With an eye to build future business, Vector Plus invested in setting up a Grooming platform, The Winning Edge, to help youngsters "Speak Good, Talk Good and Look Good. The program works with trained counselors offering counsel and valuable tips to young men to get the winning edge with Vector Plus.
  • During the year under review, Personal Care business also recorded over 20% growth driven by increased preference for shaving gel over cream.
  • Net Profit of the co. is reduced by 2.83% from previous year exceptional item of Rs.38 crores on account of financial restructuring and reconstruction and Rs.42 crores on account of aforesaid sale of immovable property.

LIQUIDITY POSITION OF GILLETTE CO.

  • The short term working position of the company is very strong.totol debtors of the company in 2009 is Rs 60.57 that is reduced from last year from 64.57.
  • In this year co. more participating in short term investement.Company invested money in loans and advances to Rs308.23 crores and in Fixed Deposit Rs91.45 crores.
  • The Company has not granted or taken any loan secured or unsecured to / from companies, firms or other parties.
  • Co. has adequate internal control systems with the size of the Company and nature of its business with regard to purchases of inventory and fixed assets and for the sale of goods and services.
  • According to me, CO.has no any major weaknesses in such internal control systems.
  • There were no disputed dues remaining unpaid in respect of Income Tax, Wealth Tax and Cess during the year.
  • The Company does not have any accumulated losses as at the end of the financial year. The Company has not incurred cash losses during the financial year
  • During the year, the Company has not taken any loans from financial institutions or banks or debenture holders As per the Balance Sheet of the Company, the funds raised on short term basis have, prima facie, not been used during the year for long term investment.
  • Co. kept limited cash, debtors and inventory and more stress on short term investment. Cash is reduced from Rs 4.38 crore to RS 1.18 Crore. Debtors is Rs 60.57 crore at the end of financial year as compared to previous year Rs 64.35 crore and Inventory at the end of financial year is Rs 100.96 crore as compared to previous year Rs 103.20 crore. Current Liabilties of the co. is also reduced from Rs 138.91 to Rs 109.77 crore.
  • Current Ratio of the company is very high its 3.98:1 from idle ratio due to more investment in short term investment.

Introduction of MTNL(MAHANIGAM TELECOM NIGAM LTD.)

On 28th February 1986 Mahanagar Telephone Nigam Ltd. was incorporated as a Public Limited Company under the Companies Act, 1956. The company has been set up to take over the management, control and operation of Delhi Telephone District (Excluding public telegraph service) and Mumbai Telephone District of the Department of Telecommunications and to plan, establish, develop, provide, operate and maintain all types of telecommunication services including Telephone, telex, wireless, data communication, telematic and other like forms of communication. One of the important objectives of the company is to raise the necessary finance to meet its own developmental needs and also that of the telecommunications board of the Department of Telecommunication. . MTNL is the largest player in the Telecom sector. MTNL has successfully converted its telephone exchange network to the digital mode systems .Having a customer base of more than 6 million, MTNL has showed a growth of over 30% during financial year 2005-06.

At present Government of India has 52.25% stake in the company whose paid up capital amounts to Rs 6300 million. After achieving the highest position in the fixed line telephone services, MTNL has also come up with the mobile services under the name of Trump and Garuda. MTNL customer base also enjoys the 1 Rs. call scheme for Delhi-Mumbai long distance calls. Company has two subsidiaries viz. Millennium Telecom Ltd. (MTL)

  • Prepaid Internet access service http://mtnldelhi.in/images/bullet6.gifPSTN Dial up provides internet access using local telephone line. Access number for this service is 172230.Two types of tariff plans are available one being the Dialup hourly usage plan and other is unlimited usage plan. http://mtnldelhi.in/images/bullet6.gifISDN Dial up provides internet access using ISDN line. Access numbers for this service are 24694444,26220000, 26213677, 25166039,23761667. Two types of tariff plans are available for this service , Dialup hourly usage plan and Flat usage plan. Email facility and Free web space of 2MB is provided with prepaid dialup internet connections.
  • Post paid Internet Express CLI service http://mtnldelhi.in/images/bullet6.gifPSTN Dial up -MTNL is providing CLI based Internet Express Service for PSTN users in Delhi & Mumbai. Access number for this service is 172231, Username is the 8 digit Telephone No of the connected telephone line and password is any character/word. http://mtnldelhi.in/images/bullet6.gifISDN Dial up- MTNL is providing CLI based Internet Express Service for ISDN users in Delhi & Mumbai. Access number for this service is 172232, Username is the 8 digit Telephone No of the connected telephone line and password is any character/word.
  • Free web to mobile for MTNL GSM Mobile subscribers MTNL has launched free Web to Mobile service for all its Mobile users. User can just register and start availing the service.
  • Internet Telephony Service IP based Internet telephony Bol Anmol service is provided by MTNL for making International Telephone calls. MTNL is offering this service at lowest rate of Rs 3.00 per minute for calls to USA, UK, Canada, Singapore and Australia. This service is based on two types of dialers as below http://mtnldelhi.in/images/bullet6.gifDownloadable dialer for green card prepaid cards. http://mtnldelhi.in/images/bullet6.gifBrowser based dialer for Blue card prepaid cards.
  • Bill payment services http://mtnldelhi.in/images/bullet6.gifPayment portal provides on line bill payment facility to its basic, Garuda and GSM subscribers. One time registration and validation is required for secured transaction from saving bank account. Facility is available for account holders of all the banks having transaction facility with RBI. http://mtnldelhi.in/images/bullet6.gifBill alert service provides MTNL Delhi basic service subscribers with an electronic version of their paper bills in their E-Mailbox.
  • Website hosting service MTNL is providing Website hosting service on various High end servers based on Windows 2000, Linux and Solaris platform. Various options are available based on space requirement of the sites to be hosted.
  • Web server hosting service MTNL is providing web server hosting at its Internet premises which provides faster access of web sites hosted on the server. Various options based on Data Transfer are available.
  • Internet service via leased Lines Leased Line Internet access service provides high speed Internet access. The Leased Line runs between subscriber premises and Internet.
  • Phone connection for Internet Use MTNL is providing Internet telephone which is available under two scheme The Main objectives and aims of Nigam are as follows:
  1. To upgrade the quality of telecom services
  2. To expand telecom
  3. To raise necessary financial resource
  4. To provide new telecommunication services, particularly needed by the Business.
  5. To invest in Human Resource Development
  6. To organise and dovetail the training programmes

PROFITABILITY POSITION ALALYSIS OF MTNL

  • The net profit during this year has gone down by Rs 238.49 crore as compared to previous year which is mainly due to revision of tariff. Co. strengthened his leadership in GSM mobile services by improving on market shares in both the metros.
  • The reduction in tariff is costing company dearly. But inspite of all the facts, due to the hard work of officials, Co. has almost maintained his profit in the last three years at the similar level.
  • There is a decline in income from services as compared to previous year. This is partly attributed to the decline in tariffs due to heavy competition. The downward trend of the Fixed line subscribers is still an area of concern for the company.
  • In MTNL's that its overall revenues have dropped in successive quarters due to intense competition . For the ended Mar 31, it had a net loss of Rs 238.49 crore, compared with a profit of Rs 112.53 crore in the same period last year.
  • India has set on to join a handful elite of nations offering third-generation (3G) mobile telephony services as the Govt, announced the auction of slices of spectrum to offer the high-value services which give the Telecom Industry a chance to earn higher revenue per user and company is ready to launch the 3G services soon.
  • The company is well equipped to keep pace with the competition in the growing economy of the country. During the year there is a tremendous increase in the cellular subscriber base. The company has continued to provide a sustained push to mobile services through an expanding network and a large range of services. The Company strives for enhancement of the shareholders value.

LIQUIDITY POSITION ANALYSIS OF MTNL

  • Totol Debtors of the company in 2009 is Rs 782.47 crore that is reduced from last year from Rs 941.82 crore.
  • In this year co. participating in short term investment. Company invested money in loans and advances to Rs 10793.23 crores and in Fixed Deposit Rs 4672.90 crores.
  • The Issue of pension, gratuity and leave encashment liability on account of absorbed employees is yet to be settled with the DOT which may have substantial favourable impact on the profitability of the company.
  • The Delhi mobile service Unit of MTNLS has not made provision in the accounts for the balance of Rs 141.75 millions outstanding for more than 3 years in respect of dues from operators. Thus, the profit of the company is overstated by Rs. 141.75 millions and Claims Recoverable have been overstated by the same amount.
  • The Co.has not made provision in the accounts for the balance of Rs 24.14 millions outstanding for more than 3 years in respect of dues from operators. Thus, the loss of the company is understated by Rs. 24.14 millions and debtors have been overstated by the same amount balance in subscribers deposits account of Rs.4526.22 Million and interest accrued thereon of Rs. 58.49 Million, This impact on the profitability position
  • In absence of agreement between the company and DOT/BSNL for interest recoverable/ payable on current account,no provision has been made for Interest payable/ receivable on balances during the year.
  • The company has not incurred any losses in the current year and in the financial year immediately preceding such financial year.
  • The Company has neither taken any loans from a financial institution / bank nor issued any debentures.
  • The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.
  • The Company is not dealing in or trading in shares, securities, debentures and other investments.
  • The Company has not given any guarantees for loans taken by others from banks or financial institutions.
  • In the year 2008-09 co. current ratio is below from idle ratio is 1.34:1 but quick ratio of the co. is 1.25:1 that is more from 1:1.it means co. has adequate liquidity if deducting debtors from the current ratio

INTRODUCTION OF SUN PHARMA CO.

Sun Pharma began in 1983 with just 5 products to treat psychiatry ailments. Sales were initially limited to 2 states - West Bengal and Bihar. Sales were rolled out nationally in 1985. Products that are used in cardiology were introduced in 1987, and Monotrate, one of the first products launched at that time has since become one of our largest selling products. Important products in Cardiology were then added; several of these were introduced for the first time in India.

Realizing the fact that research is a critical growth driver, it established research center SPARC in 1993 and this created a base of strong product and process development skills.

Sun Pharmaceutical (Bangladesh) is a private limited company incorporated in March 2001 under the Companies Act 1994. This company was formed jointly with Sun Pharma, City Overseas Ltd, a company incorporated in Bangladesh and Sun Pharma Global Inc, a company incorporated under the laws of the British Virgin Islands. The company began commercial operations in October 2004. The company owns and operates a pharmaceutical factory and makes pharmaceutical products that are sold in the local market. Sun Pharma's investment in and support of Caraco has resulted in, since the second quarter of 2002, Caraco achieving the sales to support its operations. As on March 2009, Sun Pharma owns approx 76% on a diluted basis of the outstanding common shares of Caraco. Sun Pharma has two R&D centers in Baroda and Mumbai, where development work for generics is done.

A company having its presence in the niche therapeutic segment with strong brands; a company growing at 22.6% in the domestic formulations market & the fastest growing speciality segments contributing to around 74% to the sales; a company, which is moving ahead smartly with rapid introduction of new products & strategic merger is like a brightening, rising Sun in the sky. Have a shining look of the growth story

These are low volume, high margin products and are expected to contribute about 35% to the company's sales in FY02. New products are the only remedy for the survival of major pharma companies in the highly competitive domestic market. Moreover, the increase in new product contribution reduces the overall DPCO effect. This is likely to reduce the overall DPCO coverage of SPIL from 10% to the negligible level. The company introduces at least 4 new products in each division every year. This ensures the product portfolio getting upgraded with the latest therapy advances. We expect that these products will improve the market share of the company since these are new generation drugs.

Entry into new segments will enhance product portfolio

SPIL plans to increase its presence in the gynaecology and oncology segments. The company sees these areas as segments with future growth potential. SPIL currently markets 263 products, of which about ten products in the oncology segment. These products came to SPIL on merger with Tamilnadu Dadha Pharmaceuticals (TDPL). It has plans to introduce more products in this segment. We feel that the entry into new segments will enhance the product portfolio and improve the market share of the Company.

Growth-Main driver for the company

SPIL is giving prime consideration to growth. The company believes in both organic growth and inorganic growth due to acquisitions. The company derives growth through its strong brands in the niche therapeutic high growth areas. The rapid introduction of new products has fuelled growth. According to the ORG report-May 2001, SPIL is growing at 22.6% against the industry growth rate of 8.1%. On the acquisition side, SPIL is very active in acquiring brands and companies and has a successful track record. The company acquired M J Pharma, Tamilnadu Dadha Pharma (TDPL) and Gujarat Lyka Organics (GLOL) to achieve rapid inorganic growth. Both TNDL and GLOL have been merged with the company. SPIL purchased all the brands of Natco Pharma, Hyderabad and Milmet Labs, Ahmedabad. The merger of companies and brand acquisitions has put SPIL in commanding position and the company is poised for rapid growth.

PROFITABILITY POSITION ANALYSIS OF SUN PHARMA

  • Sun Pharma's net revenues increased by 17 per cent and net profit zoomed by 25 percent from pervious year.
  • After adjusting for one-off gains, core sales are likely to have grown by more than 20 per cent on a year-on-year basis,
  • Investor w ith a 3-5 year perspective can buy the stock of Sun Pharmaceutical Industries (Sun), an integrated speciality pharmaceutical company that manufactures and markets generic medicines in India, US and several other markets.
  • Though competition and pricing remain concerns for generic companies with a US exposure, Sun Pharma's strength lies in its product basket and superior cost management in testing times.
  • That explains Sun's better profitability as well as performance against competitors.
  • At the current price of Rs 1,403, the stock trades at a valuation of 20 times its estimated 2008-09 earnings per share.
  • The valuation superior fundamentals and growth prospects.
  • In India, Sun Pharma currently has a 3.3 per cent share in a highly fragmented market and enjoys a position of strength in brands catering to therapy areas of psychiatry (Repace), neurology (Oxetol), cardiology (Aztor) and gastroenterology (Pantocid) amongst others.
  • As it continues to build on marketing initiatives to strengthen customer relationships, Sun's domestic formulation business will continue to grow faster than the industry growth of 13 per cent.
  • The challenge for Sun, however, remains in skilfully parrying the expectations of growth that too, on a higher base even as the exclusivity period in products comes to an end.
  • While sales from one exclusive product generic, Ethyol, will provide cushion in the near-term, Sun Pharma and its US subsidiary, Caraco, have applications for US generic drug approvals catering to 89 products awaiting USFDA nod, making this one of the strongest product pipelines among generic companies.

LIQUIDITY POSITION ALALYSIS OF SUN PHARMA

  • Inventories followed by the management were reasonable and adequate in relation to the size of the Company and the nature of its business.inventory increased to RS 486.74 CRORE compared to previous year Rs 389.63 crore as per the increase in sales of the co.
  • In this Year Co. reduce more supply the material on credit. Current Libality decrease from the previous year to Rs 696.34 crore from last year Rs Rs 845.73 crore.
  • Company has adequate liquidity to running the company Cash is Rs 20.17 crore. Loans and Advances of Rs 311.42 crore. Fixed and Deposit Rs 1245.32 crore.
  • Co. has adequate internal control systems according to the size of the company and nature of its business with regard to purchase of inventory and fixed assets and for sale of goods and services no major weaknesses in such internal control systems.
  • The Company had not granted or taken any loan, secured or unsecured, to or from Companies, firms or other parties
  • Company has been regular in depositing undisputed statutory dues, including, Investor Education and Protection Fund, Employees state Insurance, Income tax, Sales tax, Wealth Tax, Service Tax, Custom duty, Excise Duty, cess and other material statutory dues with the appropriate authorities during the year.
  • There were no undisputed due that were outstanding as at March 31, 2009 for a period of more than six months from the date they became payable
  • The Company does not have any accumulated losses as at the end of the year. The Company has not incurred cash losses during the financial year .
  • The company has not defaulted in re[payment of dues to financial institutions and banks. The Company has not obtained borrowings by way of debentures.
  • he Company has not granted any loans and advances on the basis of security by way of pledge of Debentures and other securities.

CONCLUSION

Three companies Gilette, Sun Pharma, Mtnl is very good company. Both all are growing stage .According to my analysis company took the steps of more investment in fixed rate of return. Because of recession was come in 2008 Company did not issue debenture or equity share (IPO) .co. maintain adequate cash, debtors,inventory for improving its liquidity & profitability position mtnl passed from losses because of more competitior but still in growing stage because of stron liquidity and creativity they launch the 3G service .sun pharma more profitability & liquidity co. because of more demand in market. Gillete is also more reputed after merger with P&G co. High market share of Gillete Co. in the market.

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