A PRESENTATION

ON OKAYA POWER LTD.

Submitted by:

NITIKA SEHRAWAT

BBA- B(VI SEM)

ROLL NO-39

PURPOSE

Someone has rightly said that practical knowledge is far better than classroom teaching. During the course of this project I actually realized how true it is when I analyzed the real world of. This project enabled us to know about the financial activities in the real world of industries.

The subject of my study is EIC Analysis, for which I did a detailed study of financial statements of Okaya Power ltd. New Delhi.

And I prepared the report containing at first, the brief introduction about the company .The second & third chapter contains research methodology & conceptual discussion, and then the findings and analysis of the research on the basis of which final suggestions and conclusion has been drawn.

PROJECT TITLE

EIC Analysis Of OKAYA POWER LTD.

Where,E - ECONOMY ANALYSIS

I – INDUSTRY ANALYSIS

C – COMPANY ANALYSIS

TABLE OF CONTENTS

Objectives COMPANY PROFILE - Mission

RESEARCH METHODOLOGY

- Source of Data ECONOMY ANALYSIS INDUSTRY ANALYSIS COMPANY ANALYSIS INTERPRETATION CONCLUSION SUGGESTIONS

OBJECTIVES

To understand interrelation of different aspects of finance

To analyze effects of different circumstances on profitability of companies

Company profile

OKAYA Japanese technology batteries are the result of human ingenuity, ceaseless effort and. advanced technological development. OKAYA is specialist of UPS and Inverter batteries and have successfully diversified into other industrial battery segments viz Solar batteries, Railways LMLA batteries, Telecom batteries and battle tank batteries etc.

Arrow International Pvt Ltd is yet another quality conscious member of the Microtek Group which brings to you OKAYA batteries in India. Okaya's India manufacturing facilities & distribution operations were established with an investment of Rupees 1100 million to bring this unique technological experience to users of industrial batteries. One of the main goals of OKAY A is to make India a production base for the high quality industrial batteries demanded by Indian consumers, as well as by international community.

The Revolution that's changing the Indian battery landscape started in the year 2002. Today, OKAYA is the second largest Inverter and UPS Battery Company in India.

COMPANY’S MISSION

Mission is to be the premier IT Services and Resource

Management Company by:

Delivering real value to our clients by providing the highest quality IT services and resources at affordable rates.

Delivering the best work environment and benefits for staff. Becoming the most trusted partner for our clients and

employees

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem it include not only the research methods but also the logic behind using the methods.

The research is Analytical and descriptive in nature attempting to analyze the financial statements of OKAYA batteries. Due to the descriptive nature of research, no hypothesis was formed.

DATA-COLLECTION METHODS

The primary sources of data like the profit and loss account, balance sheet, etc. are supplied by the finance department

The secondary sources of data are: Financial Management books

EICANALYSIS

ECONOMY ANALYSIS

Growth: Marginal moderation in growth Inflation: Supply-side concerns to persist Interest rates: Softening of rates expected Fiscal: The FRBM target in reach Infrastructure - Where are we?

INDUSTRY ANALYSIS

AFTER passing through a particularly draining phase during the two-year period ending March 2001, things appear to be charging up for battery producers.

The imposition of anti-dumping duties, demand recovery and a soft trend in the prices of key inputs have provided some relief to the players The majors have managed to record a sharp rise in earnings, while the others have put up a relatively modest performance. Storage battery producers Exide Industries and Tudor India have reported improved performance in the recent quarters.

New players have emerged in the storage battery industry. Competitive pressure, therefore, will intensify. — for instance, from Panasonic in the storage battery segment.

Considering the recent trends in the industry and the signs of a pick-up in key input prices, the industry's growth prospects and profitability in the near term could come under strain.

While the stronger players would manage to coast along, the marginal ones may get sidelined

COMPANY ANALYSIS

Common size statements Comparative statements Ratio analysis Trend analysis

INTERPRETATION Trading and profit & loss account shows that the business

would earn a net profit of Rs.8.16 crores during the year 2008 which shows that the business is a profitable concern.

Comparative income statement shows that business would be able to increase its operational income by 30.730897% and is able to increase its net income before and after tax.

Comparative study of balance sheet show that the business would be able to increase its working capital , capital employed and owner’s funds.

Common size income and balabce sheet statements shows that operating profit has increased to 12%

Trend analysis shows that the company is improving their sales and profits.

CONCLUSION

To conclude the project, it can be said that management has been marking constant efforts, with reasonable success to attain efficiencies in the management. Okaya enjoys a good rapport with its customers, enabling it to make payments for liabilities for whenever they are due.

On the basis of various aspects, I have analyzed that the finance division is quite successful in maintaining the position of the organization. The company is having a strong liquidity, activity and leverage position. Little bit of problem is with accounts receivables and inventory turnover and holding periods. In the last year the account receivable shown a considerable improvement.

The company has posted excellent results for the year ended March 2008

RECOMMENDATIONS

The division is performing according to the required situation but if certain aspects are taken into consideration than definitely the performance of the division will increase beyond the expectation.

The inventory turnover should be increased. Higher turnover ratio will ultimately bring down the inventory holding period.

The management must consider the various financing policies. The dependence on one source is not at all relevant in this highly competitive environment. The management must focus on overall policies.

There should be proper accounting information system. The division is provided by latest technologies but its implementation is not up to the required standards.

Okaya should also increase their profits to achieve the ultimate goal of financing that is wealth maximization means creating value for the shareholder.

Okaya should try to decrease the cost of good sold. Sales can be increased by deploying more staff , side by side efficient

staff should be deployed to collect cash from debtors.