Professional Documents
Culture Documents
ON
MODULE 5 DONE AT
VIMAL OILS AND FOODS LTD.
SUBMITTED TO:
SOM-LALIT INSTITUTE OF BUSINESS MANAGEMENT
MBA PROGRAMME
Sign:
Place: Ahmedabad Date:
CHAPTER CONTENT
INTRODUCTION
Chapter 1 Introduction
Research Problem
History
Social Responsibility
Vision
Mission
SWOT Analysis
Organisational Structure
Chapter 3 COMMUNICATION
Communication in vimal
Internal communication
External communication
Barriers
Overcomes of barriers
Competitors
Job satisfaction
Primary data
Secondary data
Sampling
Motivations
Organisation Culture
Academy culture
Normative Culture
Theoretical Framework
Definition of terms
Literature Review
Research Design
Sample design
Sampling area
Sample method
Data Collection
INTRODUCTION
RESEARCH PROBLEM
Employee are the asset of any organization. It is through the employees. The organization
achieves its objectives. It is very important from the organization point of view to keep them satisfied.
The purpose of study is to understand the level of satisfaction among the employees to VIMAL OIL and
suggest the area for improvement if any.
A sample respondents of 40 on total population (employees) of Vimal oil and Food Limited.
constitute the universe of study.
It is said that satisfied employees are more productive. So every organization is giving high priority to
keep their employees satisfied by providing several facilities which improves satisfaction and reduce
dissatisfaction.
We want to know whether the employees in VIMAL OIL AND FOOD LTD. are satisfied or not. So I had to
address the problem in my study.
It comprises of extrinsic and intrinsic factors and helps maintain an able and willing work forces.
The study made on the topic of job satisfaction will reveal the factor of feeling of employees
The report is useful to the management of the company to know the satisfaction levels of employees
and they can take measures to increase productivity.
OBJECTIVES OF THE STUDY
PRIMARY OBJECTIVE
SECONDARY OBJECTIVES
COMPANY PROFILE
{p.o.m}
History of the company
Vimal Oil & Foods Ltd (VOFL), the flagship Company of Vimal Group
commenced more than two decades ago in Mehsana, North Gujarat
with its registered office at Ahmedabad . The modest refining capacity
of 50 tons, with which we began THEIR jTHEIRney, has today evolved
into a fully integrated, oil processing complex with seed crushing
capacity of 200 TPD, solvent extraction capacity of 200 TPD and oil
refining capacity of 300 TPD. Leveraging on the visionary
entrepreneurial spirit and expertise garnered over these two decades,
we have diversified into Edible oils and de-oiled cakes (VOFL is one of
the largest exporters of De-oiled cakes ), Milk and Milk- Products,
Electricals, Cables & Winding wires, Submersible Pumps, Paints and
varnish, All Kind of Ceramic tiles and micro-minerals, Solar Panels &
Solutions and Real Estate. Today we have extended THEIR presence in
all major locations throughout the Country.
Established in 1992, Vimal Oil & Foods Ltd ( VOFL), today one of the
leading manufacturers of Refined Edible Oils in India. Its VIMAL range of
refined oils (Cottonseed, Groundnut, Soyabean, Sunflower, Corn and
Mustard Oil) has already become a household name and assuming
leadership status in most of the markets throughout the country.
VIMAL LITE Table Margarine introduced a few year back has also been
very well accepted by the consumer and the institutional customers
alike and today it is among the leading brands of India. Vimal
introduced Mayonnaise recently which is also picking up roots in many
markets across the country.
Vision of the organization
Strengths:
Vimal is one of the leading players in Gujarat, Rajasthan, Uttrakhand,
Himachal Pradesh and Assam & NE and is a dominant player in
Haryana, Panjab, J&K and Uttar Pradesh with a significant presence
in Delhi, Chandigarh and Maharshtra.
Both Kandla and Mehsana being big industrial hubs, the connectivity
both road and rail is very good and there is easy availability of
trucks apart from railway siding nearby.
Weaknesses:
Though Vimal is a leading player in Edible oils in most parts of the
country yet it has to compete with players like Ruchi, Adani, Bunge
and Cargill who have much deeper packets than Vimal.
The demand for Table margarine and spreads is also growing in India
@ 10-15 % per annum though the maximum growth is in the
institutional segment and mainly conversion from Table butter to
Table Margarine and Spreads. Vimal being one of the dominant
players in this segment as well has lot of growth potential in Rs. 300
crore per annum market.
The market for namkeens and snack foods is also growing in India in
already strong Rs. 12000 crore plus market in India (including approx
50% in unorganized sector). Since namkeen and snack foods have
almost 20% fat content there is opportunity for vimal to grow both in
Namkeens and Snack food segment as well as in- house
consumption of Edible Oils.
Threats
Since most of the edible oils are imported from other countries, the
frequent fluctuations in the USD creates difficulty in timely
purchasing.
The demand and supply of Edible oils is highly uncertain world over
since cultivation depends mainly on weather even in developed
countries.
Local crops yield has much more uncertainty than crops else where
in the world and thus makes it difficult to make import decisions
specially during November March i.e. the time during which
maximum Indian Oil crops are harvested.
There is always a threat from low price completion from local players
in different states, Re-packers, unscrupulous players who resort to
tax evasion tactics and some players who resort to adulteration. They
tend to disturb your growth speed. Even new entrants specially
MNCs resort to price tactics to capture market share in short span of
period.
Organization Structure
Chapter 3
communication
Communication in Vimal oils and food ltd.
Communication Strategy in an organization supports Marketing Strategy which in turn must
be in line with Business strategy of the company.
In the entire process the ultimate goal is generally making profit but customer must always
be at the centre of all there actions in the entire organization.
For this they are communicating with all the departments and employees at all levels.
In Vimal oils and food limited much information can be exchanged internally by:-
External communication
Communication that takes place between a manager and external groups such as - suppliers,
vendors, banks, financial institutes etc. For instance - To raise capital the Managing director
would interact with the Bank Manager.
They are communicating with customers through direct marketing chanell using advertisement
in print media and on television, radio..
They are using logos and slogans to build up their brands recognition.
Barriers of Communication in vimal oils and food ltd.
Lack of message clearity
Cultural differences.
Educate all departments about market realities based an actual market customer insights. This
will help generate new ideas to serve the customer better.
Regular communication with employees at all levels regarding progress against goals on daily,
weekly/monthly basis
Constantly educate your employees. Make small groups and the process should be more of
participative and not class room lecture
Recognize and reward individuals for good ideas how so ever small it may be
In the market of oils and foods there are many firms are available for doing their business.in both field
Vimal is having a large no. of competitors.
Differentiated product:-
Price makers:-
In oils and foods market all are price maker no one is price taker. So thats why vimal is also price maker.
Non-price Compitition:-
price competition is not available in oils and foods industry. Because everyone have their own price
according to their products availability in market.
COMPETITORS OF VIMAL
Adani oils
Gokul Agro Resource
Sharp corps ltd.
Gulab oils and foods ltd.
Market segment
Vimal is basically oil and foods manufacturer. And the products of vimal is available in many different
states of country.vimal is selling different oil and foods product in india.
Chapter 5
Organisational behaviour
5. Job satisfaction:
The study made on the topics of job satisfaction will reveal the factor of feelings of employees.
This report is useful to the management of the company to know the satisfaction levels of
employees and they can take measures to increase productivity.
It comprise of extrinsic and intrinsic factors and help maintain an able and willing work forces.
Primary data :
The primary data was collected from the respondents by administering a structured questionnaire and
also through observation, interview & discussion with management.
Secondary data :
Apart from primary data collected, the data collected through text book, academic reports and
internet is used for the study.
Sampling:-
Sample population :
There are totally 415 employees working in the organization.
sampling size :
Out of total strength the sample taken among workers.i.e.40
Sample area :
This research was carried on in corporate office.
Sample method :
the research was made by the survey in accordance to the convenience of the employees. So
Motivations:-
Important of motivation :
Motivation is important in business because it impacts mental and physical human reactions.
Highly-motivated individuals and staff have a willingness to get the job done efficiently and
effectively, resulting in higher productivity, increased revenue, cost savings and satisfied
employees and business owners. Employees and staff with low motivation tend to work slower,
without regard for productivity or efficiency, and end up costing the business money. Low
motivation can be caused by a lack of direction or purpose, and can sometimes be reversed by
Factors of motivation:
Skill Variety - the degree to which the job requires the use of different skills and talents
Task Identity - the degree to which the job has contributed to a clearly identifiable larger project
Task Significance - the degree to which the job affects the lives or work of other people
Autonomy - the degree to which the employee has independence, freedom and discretion in
carrying out the job
Task Feedback - the degree to which the employee is provided with clear, specific, detailed,
information about the effectiveness of his or her job performance.
Organization Culture:-
Corporate culture refers to the beliefs and behaviors that determine how companys employees
and management interact and handle outside business transactions. Often, corporate culture is
implied, not expressly defined, and develops organically over time from the cumulative traits of
the people the company hires.
Academy Culture:
Organizations following academy culture hire skilled individuals. The roles and responsibilities
are delegated according to the back ground, educational qualification and work experience of
the employees. Organizations following academy culture are very particular about training the
existing employees. They ensure that various training programmes are being conducted at the
workplace to hone the skills of the employees. The management makes sincere efforts to
upgrade the knowledge of the employees to improve their professional competence. The
employees in an academy culture stick to the organization for a longer duration and also grow
within it. Educational institutions, universities, hospitals practice such a culture.
Normative Culture:
In such a culture, the norms and procedures of the organization are predefined and the rules
and regulations are set as per the existing guidelines. The employees behave in an ideal way and
strictly adhere to the policies of the organization. No employee dares to break the rules and
sticks to the already laid policies.
Chapter 6
LITERATURE REVIEW
THEORETICAL FRAMEWORK
MEANING
Employee satisfaction is a measure of how happy workers are with their job and working environment.
Keeping morale high among workers can be tremendous benefit to any organization, as happy workers
will be likely to benefit to any company. There are many factors for maintaining high employee
satisfaction, which wise employers would do will to implement.
EMPLOYEE SATISFACTION
To increase employee satisfaction, many companies will have mandatory survey or face to face meeting
either employees to gather information. Both of these tactics have pros and cons and should be chose
carefully. Surveys are often annoying allowing workers more freedom to be honest without fear.
Interview with company management can feel intimating but if done carefully can let to workers know
their voice has been heard and their concern addressed by those in changes. Surveys and meetings can
truly got the centre of data surrounding employee satisfaction and can be great tools to identify specific
problems leading to lowering morale.
Many experts believe that one of the best ways to maintain employee satisfaction is to make workers
feel they are part of the family or team. Holding Office Events such as parties and group outings can help
close bonds among workers. Many companies also participate in team building retreats that are
designed strengthen the working relationship of the employers in the non-working related settings.
Company trips, pain ball wars and guided back parking trips are versions of this type of team building
strategy, with which many employees have founded success.
Of cTHEIRse, few will not experience a boost in morale after receiving more and many raises and
bonuses can seriously affect employee satisfaction and should be given when possible. Yet money
cannot solve all morale issues and of a company with wide spread problems for workers cannot improve
their overall improvement, a bonus may be quickly forgotten as daily stress of an unpleasant job
continuous to mount.
If possible, provide amenities to yTHEIR workers to improve morale. Make sure they have a comfortable,
learn, break, rooms which basic necessities such as a running mates keep facilities such as clean
bathroom stocked with supplies. While professionalism is necessary for most business allowing workers
to keep family photos or small trinkets on their desk can make them fed more comfortable and nested
at their workstation. Basic consideration like these can improve employee satisfaction, as workers will
fed well asked for by their employers.
The backbone of employee satisfaction in respect for workers and the job they perform. In every
interaction with management, employees should be treated with cTHEIRtesy and interest. In easy
avenue for employers to discuss problems, with upper management should be maintained and carefully
monitored. Even if management cannot meet all the demands of employees. Showing workers that they
are being heard and putting honest dedications into compromising will often help to improve morale.
Quantity of task.
Salary is a fixed amount or compensation paid to an employee by an employer in return for work
performed. An employee who is paid a salary is expected to complete a whole job in return for the
salary.
OVERTIME ALLOWANCE
Overtime allowance in extra cash compensation for the hTHEIRs that employees work in excess.
DECISION MAKING
Decision making involves the selection of a suitable action from among two or more possible
alternatives in order to arrive at a solution to a problem.
PROBLEM SOLVING
Grievance handling means help to solve a problem of the person who is in trouble and went some kind
of help. It is to help such a person is a way that can give him justice to his satisfaction.
WELFARE FACILITY
Employee welfare aims at providing such service facilities and amenities, which enables a worker to
perform their employee well. An employee welfare facility consists of canteen, rest rooms, housing
facility, medical facility, educational facility and transportation facility. This study helps to find out the
various accretions facilities they are provided by the company.
TEAM WORK
Training is the format and systematic modification of behaviTHEIR. Which occurs as a result of
education, introduction development and planned experience.
JOB SECURITY
It is the probability that an individual will keep his or her job. A job with a high level of job security in
such that a person with the job would have a small chance of become employees.
EFFECTIVE COMMUNICATION
Communication is a process in defined and shared between diving organisms. Communication requires a
sender, a message and need not be present as aware of the seniors intent to communicate at the time
of communication thus communication can occurs across vast distances in time and space.
Communication requires that the communicating panics share an area of communication.
WORK SHCEDULE
Employees work schedules vary from full fill time lo part time to job shares. All work schedules have one
thing in common; the employee is doing work under an employer. Today's employers understand that
flexibility is what employee requires in their work schedules. If they don't employers should beware.
LITERATURE REVIEW
The history of job satisfaction stems back to the early 1900s with the situations perspective on
job satisfaction. This perspective states that satisfaction is determined by certain characteristics of the
job and characteristics of the job environment itself. This view has been present in the literature since
the first studies by Hauser, Taylor and the various projects at the Western Electric plants in Hawthorne
(Cranny, Smith & Stone 1992). These studies follow the assumption that when a certain set of job
conditions are present a certain level of job satisfaction will follow. The Hawthorne Studies are
considered to be the most important investigation of the human dimensions of industrial relations in the
early 20th century. They were done at the Bell Telephone Western Electric manufacturing plant in
Chicago beginning in 1924 through the early years of the Depression. The Hawthorne plant created an
Industrial Research Division in the early 1920s. Personnel managers developed experiments to explore
the effects of various conditions of work on morale and productivity (Brannigan & Zwerman 2001).
Today, reference to the Hawthorne Effect denotes a situation in which the introduction of
experimental conditions designed to identify salient aspects of behaviTHEIR has the consequence of
changing the behaviTHEIR it is designed to identify. The initial Hawthorne effect referred to the
observation that the productivity of the workers increased over time with every variation in the work
conditions introduced by the experiments (Brannigan & Zwerman 2001). Simply stated when people
realize that their behaviTHEIR is being watched they change how they act. The development of the
Hawthorne studies also denotes the beginning of applied psychology, as we know it today. These early
studies mark the birth of research on job satisfaction relating to ergonomics, design and productivity.
One of the most popular and researched measures of job satisfaction is the Job Descriptive
Index (JDI). The JDI is a 72-item adjective checklist type questionnaire developed by Smith, Kendall, and
Hulin in 1969 (Gregson, 1991). This measure basis itself on five facets of job satisfaction. The first facet
is the work itself, satisfaction with work itself is measured in terms of the core job characteristics such as
autonomy, skill variety, feedback, task identity, and task significance (Hackman & Oldham, 1975).
Supervision, the second facet, is measured in such ways as how supervisors provide feedback, assess
employees performance ratings, and delegate work assignments.
Co-workers, the third facet, are measured in terms of social support, networking, and possible benefits
attached to those relationships (Cranny, Smith & Stone, 1992). Pay, the fTHEIRth facet, is an important
sTHEIRce of satisfaction because it provides a potential sTHEIRce of self-esteem as well as the generic
opportunity for anything money can buy (Brockner, 1988). Obviously satisfaction with pay is measured
primarily by current income but also by opportunities for salary increases. Promotion is the final facet
and the one that the JDI explicitly assesses how perceptions about the future can affect job satisfaction.
Today the facets of the JDI are generally assessed by modifying the adjective checklist and using a Likert
scale on statements such as, opportunities for advancement are plentiful measured from one
(strongly disagree) to five (strongly agree) (Cranny, Smith & Stone, 1992).
Another popular and highly researched measure of job satisfaction is the Minnesota Satisfaction
Questionnaire (MSQ). The MSQ can be scored for twenty facets; scores from one question for each facet
provide a single overall composite score. The MSQ is commonly used in conjunction with the Minnesota
Importance Questionnaire (MIQ). These instruments were designed for use with adult career
counselling clients with work experience. They are particularly useful for clients that might be called
career changers, that is, adults with considerable work experience in one or more chosen occupations
who are dissatisfied with their work and remain undecided about their career future (Thompson &
Blain, 1992).
A study conducted in Europe, Asia, Africa, and the Americas reported similarities among
workers. 10,339 workers were surveyed across 10 European countries, Russia, Japan, and the United
States. Researchers consistently identified the same top five key attributes in a job: ability to balance
work and personal life, work that is truly enjoyable, security for the future, good pay or salary and
enjoyable co-workers. Across the fTHEIR major geographic regions studied, workers specifically
emphasized the importance of potential advancement and the opportunity to build skills as a way to
maintain employability and job security (Yankelovich Partners, 1998 p.42).
A survey polling members of the Association for Investment Management and Research found that 81%
of the managers said they were satisfied or very satisfied with their job. When asked to identify the
factors that create positive feelings about their job, most managers named professional achievement,
personal or professional growth, the work itself and their degree of responsibility more important than
compensation. Factors they viewed as creating negative feelings about their jobs were company
policies, administration, relationships with supervisors, compensation and the negative impact of work
on their personal lives (Cardona, 1996, p.9). In order to decrease some of these negative feelings and
increase productivity it has been proposed to reduce the number of work days employees miss by
increasing job satisfaction, redesigning disability plans and involving supervisors in management
(Maurice, 1998, p.13).
Other research indicates that customer satisfaction and loyalty are excellent predictors of
profitabilitythe strongest predictors of customer satisfaction: employees general satisfaction with
their jobs and employees satisfaction with their work/life balance (McDonald & Hutcheson, 1999,
p.18). Again its important to note that job satisfaction is subject to change. Results of studies
comparing differences between age groups and level of job satisfaction report an increases in job
satisfaction with age (Osipow, 1968).
From an employees standpoint, job satisfaction is a desirable outcome in itself. From a
managerial or organizational effectiveness standpoint, job satisfaction is important due to its impact on
absenteeism (1) turnover, (2) and pro-social citizenship behaviTHEIRs such as helping co-workers,
helping customers, and being more cooperative. (3) Thus, to redesign jobs, reward systems, and human
resTHEIRce management policies that will result in optimum job satisfaction and productivity, managers
need to know what employees value (Karl & Sutton, 1998, p.515). In order to know what employees
value it is necessary for organizations to assess and pay attention to current levels of job satisfaction.
Current studies on job satisfaction are plentiful with some interesting results. In one study the
relationship among career experience, life satisfaction, and organizational factors for managers of
healthcare organizations is explored. Within this study a two-stage Delphi analysis of American College
of Healthcare Executives (ACHE) members identified nine domains of important job skills, knowledge,
and abilities necessary for Success as healthcare managers. The nine domains, ranked in order of
importance, are cost/finance, leadership, professional staff interactions, healthcare delivery concepts,
accessibility, ethics, quality/risk management, technology, and marketing.
Chapter 7
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
The data needed for the study is collected from the employees, through questionnaire. Analysis
and interpretation has been done by using the statistical tools and data presented through tables and
charts
RESEARCH DESIGN
The study was based on survey method. The aim of the study is to find satisfaction levels of
employees.
SAMPLE DESIGN
A sample design is a definite plan for obtaining a sample from a given population. Convenience
sampling method used in selected samples.
Sampling Area: The research was conducted at Vimal oil and food limited, Gujarat
Sample Method: The research was made by the survey in accordance to the
Data collection
For research about job satisfaction the data we have collected is the primary data
Primary data: primary data was collected from the respondent by administering a
structured questionnaire and also through observation & discussion with management.
Secondary data : Apart from Primary data collected, the data collected through the
records of Vimal oil & food limited and internet is used for the study.
Tool used for analysis:
Measurements Scales:
Participative 17
Autonomy 8
Motivational 15
Interpretation
From the above table we can say that 40% employees are
highly satisfied and 20 % Satisfied 10 % are neutral.
Employee's View regarding Motivational Programs
Type Strongly Disagree Neutral Agree Strongly agree
disagree
Appreciation 2 4 11 16 7
and reward
Involvement of 4 6 10 15 5
employees in
top
management
decision
Recognisatio 1 3 12 16 8
Interpretation :
From the above table we can say that 45% of employees are
agree and 25 % of employees are strongly agree, 20%
employees are neutral 15% are disagree and 10 % are strongly
disagree
Employee's Job Tenure
Year Respondent
0 to3 12
3to 5 14
5 to 7 9
More than 7 7
Anova: Single Factor
SUMMARY
Groups Count Sum Average Variance
Salary 40 152 3.8 0.625641
Promotion 40 147 3.675 0.532692
Leave 40 107 2.675 0.840385
Motivational Talks 40 158 3.95 0.561538
Recognition 40 177 4.425 0.404487
Job Security 40 122 3.05 0.253846
ANOVA
STHEIRce of Variation SS df MS F P-value F crit
1.82E-
Between Groups 80.27083333 5 16.0541667 29.9277 23 2.25262
Within Groups 125.525 234 0.53643162
H: Rejected
Ha : Factors are not
Interdependent
Findings
Majority of the employees know the overall goals of the company.
Most of employees are highly satisfied (88%) with motivational programmers provided
by the company.
Only 16% of employees are dissatisfied with the leave and other conditions provided by
the company.
Majority of the employees are dissatisfied with the chance to be involved and identified
with the goal and image.
Majority of employees are satisfied with the allowances provided by the company.
Higher portion of employees are satisfied with the promotion and growth opportunities
provided by the company.
Most of the employees always get a chance a part of decision making (60%).
Majority of employees satisfied (40%) with the good team exist in the organization.
Majority of employees opinion are the superior listen to their opinion and suggestion.
Only 16% of employees are not to get enough time to spend with yTHEIR family on leave
occasion.
Most of employees satisfied (72%) the time of the job.
24% employees dissatisfied the training programmers conducted by the company.
Majority of employees have a good opinion about safety measures provided by
institution (72%).
Most of employees get proper promotion and growth opportunities (68%).
Some of the employees had bad opinion about behavior and supper of management
(8%).
Majority of employees satisfied (70%) the working relationship with their supervision.
Majority of employees satisfied the refreshment and recreation facilities.
RATIO ANALYSIS OF
Turnover Ratio
The percentage of a mutual fund or other investment vehicle's holdings that have
been turned over or replaced with other holdings in a given year. The type of
mutual fund, its investment objective and/or the portfolio manager's investing style
will play an important role in determining its turnover ratio.
Meaning: The ratio measures the number of time an average company sells
inventory during a period or it indicates the number of time the inventory is
replaced in a year.
Formula
12.27
10.83
9.44
Analysis
By stock turnover ratio we can analyze that in a year or in a period of time how
many times inventory has been replaced in a company.
Comparing the ratios as the financial year in 2014 was 10.83 and that in
2015 is 9.44. From this we can see that in 2015 ratio is low comparing to 2014
That means their turnover is low as compared to last 2014. The company has to
place the order repeatedly.
2.Working Capital Turnover Ratio
Formula
10.2
10
9.8
9.6
9.4
9.2
2014 2015 2016
WORKING CAPITAL TURNOVER
10.04 10.25 9.56
RATIO
Analysis
Comparing the last 5 years of working capital in financial year 2014-15 working
capital is the highest i.e. 10.25.
This shows that the company is able to utilize more working capital and
management is efficient.
But currently the company is showing the lowest rate among last 3 years.
Formula
Debtors turnover ratio
7
6
5
4
3
2
1
0
2014
2015
2016
Analysis:
The debtors ratio in the year 2015 was 7 which decreased to 3.72 in
2016 which shows that the company is not able to convert their accounts
receivable into cash in compared to previous 2 years.
Formula
Fixed assets Turnover ratio = Net Revenue
46.3800
36.2200
25.2700
Analysis
Comparing ratio in 2014 and 2015 there is vast difference between the two. The
company is constantly on growth stage in this two years but than in 2016 there is
big decline.
This means that the company is earning very less interest on its fixed assets in
current position.
Profitability Ratio
Meaning: Ratio that measures a company's earnings before interest and taxes
(EBIT) against its total net assets. The ratio is considered an indicator of how
effectively a company is using its assets to generate earnings before contractual
obligations must be paid
Formula
EBIT
Return on Total Assets =
Total Net Assets
Return On Asset(ROA)
120.0000
100.0000
80.0000
60.0000
40.0000
20.0000
0.0000
-20.0000 2014 2015 2016
-40.0000
-60.0000
-80.0000
Return On Asset(ROA)
Analysis
In the financial year 2014 ratio was less than as in 2015 it is 98.4 which is the
highest among the ratio of last 3 years. But in 2016 is diminish to even a negative
so we can say in 2016 vimal is not efficient in converting its assets into profit.
Solvency ratio
A key metric used to measure an enterprises ability to meet its
debt and other obligations. The solvency ratio indicates whether a
companys cash flow is sufficient to meet its short-term and long-term
liabilities. The lower a company's solvency ratio, the greater the
probability that it will default on its debt obligations.
Formula
1.8100
1.5600
1.0000
Analysis
In financial year 2014 debt equity ratio was 1.81 which is the highest among the 3
years record. This shows that in this year the company had no enough money to
finance its assets.
In the tear 2016 it is 1.00 which is decreased from previous year. This shows the
company had enough money to finance its assets.
Liquidity Ratio
A class of financial metrics that is used to determine a company's ability to
pay off its short-terms debts obligations. Generally, the higher the value of the
ratio, the larger the margin of safety that the company possesses to cover short-
term debts.
Current ratio
Meaning : The current ratio is a financial ratio that measures whether or not a
firm has enough resTHEIRces to pay its debts over the next 12 months. It
compares a firm's current assets to its current liabilities.
Current Ratio
1.0000
0.9000
0.8000
0.7000
0.6000
2014
0.5000
2015
0.4000
2016
0.3000
0.2000
0.1000
0.0000
2014 2015 2016
Analysis
As we compare the current ratio in the year 2015 the ratio is highest i.e.0.90. From
this we can say that the company has used their funds more efficientlyear ias
compared to previous years. But not in last year.
Quick Ratio
Meaning : The Acid-test or quick ratio or liquid ratio measures the ability of a
company to use its near cash or quick assets to extinguish or retire its current
liabilities immediately.
Formula
Current Liabilities
Quick Ratio
2.5000
2.0000
Axis Title
1.5000
1.0000
0.5000
Quick Ratio
0.0000
2014 2015 2016
Quick Ratio 1.1800 0.9600 2.4600
Analysis
If we see the ratios of the financial year 2014 it is slightly more than ideal
ratio 1:1. And in the year 2015 the ratio decrease from the ideal ratio.
This means that in present scenario the company has double assests to pay
liabilities.
CONCLUSION ON RATIO OF LAST 3 YEARS
Liquidity ratios of last 3 years, Current ratio has increased in the current
year. Which suggest that company has more current assets against its
current liabilities to pay its debt. That is good for the company and it is
company's strength. Quick ratio of the company has decreased comparing to
the financial year 2014 but it is near to the idle ratio which suggest company
is efficient in paying its debt and it is a strength for the company.
Liquidity ratios of all the competitors current ratio of vimal is 1.39 which is
better than almost all the 3 competitotrs in the market which shows that
vimal has used their assets efficiently against their ability to pay liability is
better than the other companies.
Looking at Return on total assets of the has decreased in the current year.
The company's efficiency of using its assets to generate income has reduced.
That is not good for the company. Return on equity shareholder's fund has
reduced comparing to the previous year. That means company is not using
its shareholders funds efficiently to generate profit.
Leverage ratios of the companies, Debt equity ratio of the company has
reduced comparing to the previous year. Always the debt equity ratio shall
be less else this will demotivate the investors to invest in the company. This
is good for the company. So The company may not suffer from less capital
from the public. The ideal ratio shall be 2:1.
Turnover ratios of the companies, Stock turnover ratio of the company has
increased in the current year. Which means companies sales has increased
and it is making enough profit as compared to previous years .This shows
that the company is selling quickly and that little unused inventory is being
stored.but in comparison to 2014 the current years ratio is low.
Companies Working Capital Turnover ratio in the current year is lowest
among all the 3 years. This measure the amount of capital invested in the
resTHEIRces that are subject to quick turnover.
Debtors turnover ratio of the company has Decreased in the current year for
VIMAL. That means is not able to pay its debtors efficiently and is not able
to pay the debtors properly.
CHAPTER 9
SUGGESTIONS
From the analysis conclude that the job provides the opportunity to the
employees to exercise his/her skill at work place. Number of the employees
aqccepted that at times there is considerable flexibility in co ordinating
with work and they are satisfied with the existing inters personal
communication.
In vimal oil & food limited they follow the systematic planning and review
process to evalute the performance of employee.
From the analysis conclude that the job provides the opportunity to the
employees to exercise his/her skill at work place. Number of the employees
aqccepted that at times there is considerable flexibility in co ordinating
with work and they are satisfied with the existing inter personal
communication.
In vimal oil & food limited they follow the systematic planning and review
process to evalute the performance of employee.
BIBLIOGRAPHY:-
WWW.VIMALOILS.COM
WWW.MONEYCONTROL.COM
WWW.WICKYPEDIA.NET
MANAGEMENT (JAMES A. F. STONNER) (Perason) ( 6th Eidition)
Annexure
QUESTIONNAIRE.