8/6/2019 0107230592053 - BHUMIT SHAH

1/26

A APRESENTATION ON

FINANCIAL PERFORMANCE REVIEW AT

RUBAMIN LIMITED

PREPARED BY:

BHUMIT SHAH

ENROLLMENT NO: 107230592053

GUIDED BY:

MS. KOMAL PATEL

K.N.V INSTITUTE OF BUSINESS MANAGEMENT

RAJKOT.

8/6/2019 0107230592053 - BHUMIT SHAH

2/26

INTRODUCTION TO RUBAMIN

Rubamin is rapidly growing organization having operation in Indiaand D. R Congo. Its operation include Mineral Exploration, MetalExtraction as well as Metal Compounds.

Rubamin started its Manufactured operation in 1985 as a smallproduct of Zinc Oxide and by 1995 it became the largest producer in India and also commenced operation of Cobalt and Copper Metal in 1998.

Rubamin Limited is one of the leading producer of Zinc Oxide andCobalt Compounds in the country with its products having wideapplication across varied users.

8/6/2019 0107230592053 - BHUMIT SHAH

3/26

Cont ..

Presently Rubamin Group is engaged in three prime business:a) Zinc Oxideb) Cobalt Metal and Saltc) Pharmaceuticals Intermediaries and fine Chemicals.

The company has 5 manufacturing sites in India and over 5000sq. kms of different mineral concession in D. R Congo.

Rubamin has appointed Chemlock Metal Corporation as its globaldistributors for Cobalt , Metal and Compounds.

ICICI Ventures one of the leading private equity companies inIndia has taken a strategic stake in Rubamin in July 2007.

8/6/2019 0107230592053 - BHUMIT SHAH

4/26

MISSION:To become a global player in our chosen fields of operation and shallaim at total customer satisfaction

VISION:To be Internationally Competitive in Cobalt, Metals and Compounds.

8/6/2019 0107230592053 - BHUMIT SHAH

5/26

OBJECTIVE:To Manufacture world class Tyre Industry.

POLICY:To meet customer expectation of high quality products in thestipulated time frame and as per their satisfaction.

8/6/2019 0107230592053 - BHUMIT SHAH

6/26

We have sourcing base in DRC.

Entire requirement is presently met by Hetrogenite source fromDRC.

Following alternative raw material are freely available but arerelatively expensive.

Crude Cobalt Hydroxide Crude Cobalt Sulphate Cobalt Ash White Alloy

RAW MATERIAL

8/6/2019 0107230592053 - BHUMIT SHAH

7/26

COMPETITORS PROFILE

ZINC OXIDE:

y Nav Bharat Metalic Oxidey Transpecy Pondy Oxide and Chemicalsy Upper India Chemicalsy Mittal Pigments Pvt. Ltdy Liuzhou Zinc (Chinese Player)y Umicore Group (Europe)y U.S Zinc (US Market)

COBALT AND COPPER:

y OM Groupy Falcon bridgey Norilsky Chambishiy International Cobalt Company Inc.y OM Group (Finland)y Sherritt International Corporation

(Canada)y BHP Billiton (Australia)y Jinchuan (China)y Sterlite Copper Industryy Hindalcoy SWILy Hindustan Copper

8/6/2019 0107230592053 - BHUMIT SHAH

8/26

CUSTOMER PROFILE

Zinc Oxide

y MRF Limitedy Bridgestone India Pvt, Ltd.y Apollo Tyres Limitedy CEAT Limitedy Videocon Glass Industriesy Explorer SRL (Italy)y RAK Ceramics (Dubai)y Star Chemicals (Australia)y CEAT (Sri Lanka )y Jasol (New Zeland)

Cobalt and Copper

y Sandvik Groupy Lona Industriesy Laxminarayana Tradersy Narayana Industriesy Parswnath Industriesy Codelco (Chile)y Phelps Dodge (USA)y La Chemicalsy Patcham Limitedy Kosheri

8/6/2019 0107230592053 - BHUMIT SHAH

9/26

ORGANIZATION STUDY

ORGANIZATIONSTUDY

MARKETINGDEPARTMENT

PURCHASEDEPARTMENT

OPERATIONDEPARTMENT

HUMANRESOURSE

DEPARTMENT

FINANCEDEPARTMENT

8/6/2019 0107230592053 - BHUMIT SHAH

10/26

MARKETING DEPARTMENT

DISTRIBUTION CHANNEL

Distribution Channel is the thing through which the product isavailable for their users and customers. The DistributionChannel of the Rubamin Limited is as follows:

Manufacturer --------------> Agent ---------------> Customer.

DISTRIBUTION NETWORK

The Distribution Network is the network where the Agent aredistribute the products to their customer directly. RubaminLimited has Distribution Network in the Places like Bombay,Banglore, Delhi, Daman, and Puna.

8/6/2019 0107230592053 - BHUMIT SHAH

11/26

PURCHASE DEPARTMENT

The Procedure being handled by Purchase dept. The same areas follows:

PRESENT PURCHASE PROCEDURE

a. Purchase Order b. Purchase Order and Amendment

c. Purchase Procedured. Purchase of Process Chemicalse. Purchase of Packing Materialf. Purchase of Material for Congo

8/6/2019 0107230592053 - BHUMIT SHAH

12/26

PRODUCTION DEPARTMENTTOOLS USED FOR MATERIAL HANDLING

Rubamin Limited Used Following tools for the transferring thematerial from one place to another place for their productionpurpose they are as follows:

Hand Pallet TruckCrainHoistLiftsForclip

STORAGE OF MATERIALWhenever the material are coming from outside, first of all theperson who ordered the material will take the gate pass andthen after the material are store in the factory at storage room.

After that the material are goes for the inspection and then after they are registered in the GRN (Goods Received Note). Finallythe material are goes in the custody of the users.

8/6/2019 0107230592053 - BHUMIT SHAH

13/26

HUMAN RESOURSEHUMAN RESOURSE

DEPARTMENTDEPARTMENTI. Auto Attendance SystemII. Lunch and Tiffin facilitiesIII. Festivals and Holidays

IV. Late coming normsV. Early going NormsVI. OvertimeVII. Leave without PayVIII. Labor RelationIX. Labor WelfareX. Safety MeasuresXI. Applicability of Law

8/6/2019 0107230592053 - BHUMIT SHAH

14/26

8/6/2019 0107230592053 - BHUMIT SHAH

15/26

Cont.FUNCTION OF FINANCE DEPRTMENT

A finance department basically has three main functions:

To provide strategic financial support regarding operational and

general business planning

To provide daily financial services functions

To meet and surpass the internal and external needs and financial

reporting requirements of the company at large

The finance department generally focuses on providing relevantinformation necessary for upper level management. Suchinformation is crucial in determining how a company can make

better financial decisions.

8/6/2019 0107230592053 - BHUMIT SHAH

16/26

RESEARCH METHODOLOGYTITLE OF THE STUDY

The title of the study is financial Performance review (Ratio Analysis and Working Capital) of Rubamin Limited whereResearcher has study different aspects of these topics.

RESEARCH OBJECTIVE

To know the overall Financial Position of the company.To determine the overall profitability of the company.

To determine the Strength and Weakness of the company by itsoperation and interpretation of the Ratio analysis.To determine the decision related to working Capital are :a) Receivable managementb) Cash management

c) Inventory management

8/6/2019 0107230592053 - BHUMIT SHAH

17/26

Cont

SCOPE OF THE STUDY

Also the Ratio Analysis is important part of the organizationwhere we know the Profitability of the company.

Ratio Analysis helps various prospected parties likeprospective investors, creditors, banks, and employees.

8/6/2019 0107230592053 - BHUMIT SHAH

18/26

Cont.METHOD OF DATA COLLECTION

For this study Researcher has choose Secondary Method of Data Collection from various sources like Companys AnnualReport, Companies Web site and other related publishedmagazines and Journal.

LIMITATION OF THE STUDY

Time period available for the data collection was limited.

The Employees of the company cannot spend the requiredtime because of their scheduled.

Some information is not provided by the company because

these are the confidential for the company.

8/6/2019 0107230592053 - BHUMIT SHAH

19/26

REVIEW OF LITERATURE

Literature review discusses publishes information in a particular subjectarea. The Information is taken by the following sources:

A Title Financial Management written by Khan and Jain, 2nd Edition2011.

A Title Cost Account and Financial Management written by B.Saravana Prasath, Published by C. Sitaraman & Co. Pvt. Ltd.

A title Business Research Methodology written by J.K. Sachdeva,Published by Himalaya Publishing House, In the year 2008, 1 st Edition.

A title Research Methodology, Methods and Techniques written byC.R Kothari, by New Age International Publishers, in the year 2007, 2 nd

Edition.

8/6/2019 0107230592053 - BHUMIT SHAH

20/26

RATIO ANALYSISRatio analysis is process of comparison of one figure with another

and the interpretation of the ratios to know the strengths andweakness of the firms operations and of its financial position.

Ratio analysis helps various interested parties like prospectiveinvestors, creditors, banks, and employees etc. to draw useful

classification of accounting ratio.

TYPES OF RATIOI. Liquidity Ratio: its measures the Firms Ability to Meet Current

obligation.II. Leverage Ratio: its Shows the proportion of Debt and Equity in

Finance firms result.III. Activity Ratio: the Firms Efficiency in utilizing its assets.IV. Profitability Ratio: its Measure overall performance and efficiency

of the firm.

8/6/2019 0107230592053 - BHUMIT SHAH

21/26

SUMMARY OF THE RATIO

Sr.No

Ratio 2011 2010 Page No:

1 Gross Profit Ratio 12.47 10.10 70

2 Net Profit Ratio 2.74 0.39 71

3 Current Ratio 1.41 1.59 73

4 Q uick Ratio 1.03 1.18 74

6 Fixed Asset Turnover Ratio 4.6 3.21 76

6 Inventory Ratio 5 .41 4 .11 77

7 Debtor turnover Ratio 5 .13 (70 Days) 5.38 ( 6 7 Days) 78

8/6/2019 0107230592053 - BHUMIT SHAH

22/26

F I IGross Profit ratio during the current year 2010-11 is increasing by10.10% to 12. 4 7%. So, it shows the Selling price is high ascompare to Cost price and its a good position for the company.

Net profit Ratio during the current year 2010-11 is also increasingby 0.39% to 2.7 4 % because variable and fixed expenses is less.So, the company met its obligation and earn maximum profit.

Current Ratio during the current year 2010-11is decreasing by 1.59to 1. 4 1which show the less ability to met its obligation.

Q uick Ratio during the current year 2010-11 is also decreasing by1.18 to 1.03 which shows that company having less liquidity andcant pay its current liability and debt.

8/6/2019 0107230592053 - BHUMIT SHAH

23/26

RECOMMENDATION

The Major expenses of the company were manufacturing expenseswhich includes Consumption of raw material, freight and duties andrepairs and Maintenance. By proper utilization of its Plant andMachineries it can not only reduce its cost but also avoid shutdowns.

Many types of machinery were put down as an idle. They can beutilized by giving it to other companies on rent or other consideration.By this way company can earn some more amount of profit.

There is no Advertisement of the companys Product in the market so

the company has to start Advertisement through different tools.

8/6/2019 0107230592053 - BHUMIT SHAH

24/26

COCLUSIONIt was great experience for Researcher to have training at the

company like RUBAMIN LIMITED. Researcher learned those skills,which are needed in any management student.

Management of RUBAMIN LIMITED is good and having capableemployees to make it number one Cobalt and Zinc oxide

manufacturing company in India.

All the departments are doing their work in a professional manner and all the employees are of cooperative in nature.

At this stage the Researcher has clear picture of what are theactivities of the different departments.

According to my point of view success factor for RUBAMINLIMITED are hard work, discipline, co-operative structure,production technology development.

8/6/2019 0107230592053 - BHUMIT SHAH

25/26

B IBL I

WE B SITES

www.rubamin .com

T E S U CES

Company Broacher Annual Reports of the Year 2009-10Past Reports and Magazines

BOO KS

Financial Management by Khan and Jain 1 st Edition, 2010Financial Management by I M Pandey Vikas Publishing 9 th

Edition

8/6/2019 0107230592053 - BHUMIT SHAH

26/26

Thanks a lot.