Business Ethics Case Study: Primark

Business Ethics Case Study: Primark This assignment will review the literature on Business Ethics within the context of a particular organisation PRIMARK. To enhance our understanding of the concepts of values and morals our study defines and evaluates ethics in a business context; simultaneously throwing light on issues such as disposable fashion and ethical sourcing. 1. INTRODUCTION Primark, the cult value fashion brand owned by Associated British Foods (ABF) is the largest clothing retailer in UK by volume with a whooping 207 stores spanning across Europe. Mr. Arthur Ryan, founder and chairman has been credited of bringing affordable fashion to the high street and is also credited for nurturing Primark into an astounding success story. Starting from the first store in Ireland in 1969 till the 207th store in 2010, this brand has experienced phenomenal growth. Primark picked up the Multi Market Retailer of the year 2010 award at the Oracle world retail awards ceremony. Market Share 18.2% (http://www.primark.co.uk/page.aspx?pointerid=eb44df4565934edca627dac6ec12145a) 2. LITERATURE REVIEW Business Ethics Barry (1979) defines Ethics as studying what constitutes good and bad human conduct, including related actions and values. According to Velasquez (2010), the prime focus of business ethics lay on morals and values with respect to company policies, decisions and framework. He categorizes business ethics by: social issues, company issues and individual issues. From the National Business Ethics Survey (NBES), Verschoor cited that companies today are increasingly giving importance to ethical behavior and social responsibility. Also, more unethical practices are getting exposed rather than unethical behavior committed. Hence, it confirms evidence of the fact that companies are taking this issue seriously in order to not jeopardize their global brand and image. At this juncture, one should think about why should companies engage in ethical business practices? Is it simply to abide by the law, as it is the right thing to do or because it benefits them to do so? This may seem as a moral dilemma in several ways since it is the central issue in business ethics. (Fisher and Lovell, 2009) An increasing number of consumers make their purchase decisions based on ethical values of a company. Hence, it is crucial to make consumers aware of the ethical issues in trade and to understand what would prompt them to modify their consumption patterns. Marketing strategies can then be developed based on this understanding. (http://www.nri.org/publications/policyseries/PolicySeriesNo12.pdf) Ethical Consumerism Ethical Consumerism is an emerging process that emphasizes on socially responsible trade activities. It is just as much about supporting the good companies and products, as it is about withdrawing support from the bad ones. An ethical consumer will help in providing information one needs to make an informed decision about a purchase. (http://www.ethicalconsumer.org/ShoppingEthically/WhyBuyEthically.aspx) (http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1690945) Positive ethical purchase behavior, takes into account the trends that comprise attempts to purchase ethical products. For example, use of Fair-trade or Organic products. Negative ethical purchase behavior or boycott, has been regarded as the key form of ethical consumerism. It means avoiding products that are unethical. Therefore, an informed consumer would only choose products that reflect moral responsibility. For instance, in 1997 MORI survey for CAFOD on purchasing products from developing countries, there was particularly high support for a minimum agreed standard of labor conditions for workers in developing countries; 92% of the sample thought that this should apply to UK companies. (http://www.nri.org/publications/policyseries/PolicySeriesNo12.pdf) Ethical Sourcing Ethical sourcing simply put is the moral standards put forward by companies, which source their goods from other third party vendors. These standards have been set up to allow companies to ensure that the work they have contracted out to third party firms, have been conducted in an ethical manner. A critical analysis of the levels of ethical standards would lead one to an understanding that the highest level of ethical compliance lies in ethical sourcing. This is because nearly all other ethical standards are internal standards falling within the control of an organization and its framework, whereas ethical sourcing would deal with the (outsourced) production outside the purview of the organization. In essence, to be a supplier for an organization that has ethical sourcing guidelines, the supplier must also be an ethical organization. However, this is an ethical standard that is predominantly seen in companies in developed countries that contract their work to companies located in de veloping countries. Ethical Sourcing in the society is not well regulated although there are rules and statutes in place. In the UK, the Combined Code on corporate governance does not deem it essential for companies to adhere to certain policies. Companies can get away with simply explaining why they have not complied with specific provisions in their annual report. This again is only a regulatory mechanism that is in place for public limited companies, which are listed on the stock exchange (Preuss, 2009). Both these mechanisms were set up to pacify the public and various industry players, as neither of these acts have actual policing power. Most companies Ethical Sourcing guide is a copy from governing bodies Statute on Ethical Sourcing. The governing body in the United Kingdom is the ETI (Ethical Trading Initiative) (Preuss, 2009). The ETI is essentially a consortium of companies, trade unions and industry players who work together for the upliftment of the workers who make various consumer goods. Most companies take the statute from the ETI and plug in their own inputs or areas of concern. According to Preuss Ethical Sourcing includes ensuring ethical standards are followed by work contracted to outside companies from an environmental, economic and social standpoint. However one must realize that these are determined by the individual companies and are tailored to suit their needs and stress is laid on areas of concern to the company putting forth these standards. This leads ethical sourcing standards to be very industry and firm specific. According to Preuss, the key areas of concern, in order of importance, across industries are as follows: a) Employment Issues Compliance with Local Laws Safe working environment No Child Labor Non- Excessive working hours Avoiding Illegal Immigrants b) Environmental Issues Commitment to Environmental Protection Compliance to local laws Minimization of Waste Control of Emission/ Pollution Use of Environmentally friendly Technologies c) Economic Issues Confidentiality of Supplier Issues Prompt Payment Reciprocal Business Relationship not required Support for Smaller and Local Suppliers Recognizing Risk of Dependant Suppliers Acknowledge Hardship where Relationship ended (Preuss, 2009) 3. ANALYSIS The world we live in has moved into a new stage of mass consumerism, where no matter how much we have is never enough. As a result, our lives have become more materialistic. This shift has been extremely beneficial to large corporations, who have recognised and exploited the potential of the markets. This holds true for several industries especially the retail and fashion industry. Disposable fashion or Fast fashion is the new trend, which has been catching on among clothing giants like HM, Forever21, New Look and Primark. It refers to the practice of producing cheaper imitations of the latest fashion trends that are mass-produced quickly at comparatively low costs. This makes fashion more accessible to a larger segment of the population. It may be considered a boon by millions of avid shoppers but it also has considerable drawbacks. First, it possess a serious threat to Fashion designers whose work has been replicated. Further, the ways in which these garments and accessories are being produced also have serious environmental consequences. Lastly, the business models that make the retail giants everyday low prices possible rely on subsidies from millions of people around the globe (Cashing In: Clean Clothes Campaign, 2009). Millions of workers in the fashion industry have become little more than slaves, stated Neil Kearney (2007), General Secretary of the International Textile, Garment and Leather Workers ´ Federation (ITGLWF). Poor working conditions and terms of employment, along with low wages are common problems that occur across garment-manufacturing factories. Workers in countries like India, Bangladesh, Sri Lanka and China have a large population that lives below the poverty line, providing extremely cheap labour for companies worldwide. This already oppressed section of society is further exploited to meet the needs of large corporations globally. Workers in garment manufacturing factories are often robbed of their basic rights. A woman at a Walmart and Carrefour supplier in Bangladesh reportedly said, I feel so sick and tired after a days work that I do not want to work the next day. But hunger does not allow thinking of sickness; the thought of living with an empty stomach makes everyth ing else forgotten. We work to save ourselves from hunger. (Clean Clothes Campaign, 2009). Unfortunately, the impact on these factory workers is not equally spread. It is the women and children who suffer the most. A recent survey in India suggests that a quarter of all garment factories are employing under-age labour. Most of the production is for export to Europe (Neil Kearney, 2007). The scandalous truth is that the majority of workers in the global fashion industry rarely earn more than two dollars a day, in an industry worth over  £36 billion a year in the UK alone(Lets Clean Up Fashion, 2009). Workers wages are often much lower than the cost of living in their respective countries. Labourers work for over 80 hours a week at 5pence an hour and are often not paid for the additional hours of work they put in. A woman at a Tesco Supplier was documented saying, We do a lot of overtime. Almost every day there is at least one hour extra. We are called on Sundays as well. However, our monthly wage slip will not show all the overtime that we do. It will quote only 1-2 hours as overtime in a month (Clean Clothes Campaign, 2009). Garment workers are the linchpins of an industry worth over  £36 billion annually in the UK alone (Lets Clean Up Fashion, 2008). Workers in these garment factories end up paying a high price for cheap clothes. The colossal growth of such companies is a testament to the thriving businesses that they are running. Therefore, making their responsibility towards their operations even more pertinent. Many low cost giant retailers claim that they are taking measures to ethically source their materials and ensure workers labour rights, however, this is not enough. There is an urgent need for improvements in the corporate social responsibility system, on behalf of the garment retailers. Primark, part of ABF is the second largest clothing retailer in UK in terms of volume (Associated British Foods; Retail Segmentation, 2010). The Primark brand has made itself synonymous with affordable fashion. Its value proposition is to provide low cost and highly fashionable clothing, which is targeted at lower income, fashion conscious shoppers. Keeping this in mind, it is no real mystery that Primark must keep its production and overhead costs as low as possible so as to profitably sell their cheaply priced goods. To maintain profitability and to keep their value proposition in mind, Primark had to keep the production costs low. This had been done by outsourcing work to textile factories in developing countries across Asia. Primark claims that these factories are properly vetted and audited to ensure adherence to fairly high ethical standards that are a part of their supplier contract. Here, a question arises as to how does Primark manage to provide cheap clothing? It is assumed to be the result of negotiations with their suppliers, which is something most suppliers would be willing to compromise on, just to include a brand like Primark on their client list. The onus lies on these suppliers to produce goods at extremely low costs, considering the abundant availability of cheap labour in developing countries. However, they may opt to subcontract the work or parts of it to vendors with less standardised capital equipment in terms of employee work force and standard of work areas just to maintain optimum profitability. These subcontractors are generally production houses that operate from basements or garages rather than an industrialised area. They simply provide a more profitable way for the contractor to get their orders completed. Surprisingly, these subcontractors are outside the purview of most audits and do not form a part of the regulated market. This allows them to operate, abusing many laws and flouting most rules prescribed by the government and by Primark who gives the original order for production. They ensure that the goods are sent to the factories and no outsiders get to see their production facilities where they employee ch ildren, pay low wages and provide unsatisfactory working conditions. However, at the end of the day all fat cats in the supply chain are able to make their bag of money and a customer at the end of the chain is able to get a nice fashionable top to wear for under five pounds!!! The retail sales figure for the year 2009 has shown a remarkable upswing for Primark as compared to other high street clothing brands. It has emerged as one of the strongest brands during the time of recession and has been recognised as a major success story. In 2008, the big Primark expose was broadcasted on television that caused public outrage and media dismay. This also led to Primark being designated as UKs most unethical clothes shop. But the question here arises, that even after consumers being aware of the unethical practices the clothing chain has cemented its position at the top. (http://londonfashionnetwork.com/c/19/248/primark-vs-our-ethics). This is what a consumer had to say after the expose- I very much doubt it will stop me from shopping in Primark though. My budget is smaller than my conscience Sugarplumfairy 26th May 2008, 22:51 (http://www.thestudentroom.co.uk/showthread.php?t=589698HYPERLINK http://www.thestudentroom.co.uk/showthread.php?t=589698..) I just dont c are really -by Narrr 25th February, 2010. (http://makewealthhistory.org/2009/01/12/how-long-can-primark-get-away-with-it/) The story of rising profits continued, as seen in The Guardian (2009). The report stated that Primark was amongst the fewer retailers who were prospering in the times of recession posting 10% increase in profits. Primark, despite receiving all the bad press in the months prior to the launch of its flagship store in Oxford Street, London, was the scene of a stampede at its opening. Essentially, one can clearly reason that a normal consumer does not really care. This is cemented in black and white in their Annual report, which shows sales figure to be a staggering  £1.1bn, an increase of about 18% from the previous year. (http://www.guardian.co.uk/business/2009/apr/21/primark-announces-profit-riseHYPERLINK http://www.guardian.co.uk/business/2009/apr/21/primark-announces-profit-rise..) This perception denotes that some people think employing them is in the poor mans interest It always makes me laugh when people go on about unethical; whats more unethical giving them a job and a way of living or producing all our stuff here and letting them starve? Secondly, I cant afford  £30 for a top when I can go to Primark and get one for  £3. Thud, 25th May 2008 (http://www.thestudentroom.co.uk/showthread.php?t=589698). The upward trend continued, with Primark performing spectacularly in 2010 with an increase of 35% in operating costs. Sales figures at the popular fashion chain increased by 18% to  £2.7bn. Further, an increase in operating profits to  £341mn helped by 13 new stores including its first ever in Belgium. Going by the popularity, the management will continue opening new stores all over Europe, where they expect considerable growth. (The Guardian, 2010). It has also agreed to buy 10 stores from their rival Bhs that are scheduled to open from the next fina ncial year that will add 300,000 sq. feet selling space, which points out that they are considering expansion plans. (http://business.timesonline.co.uk/tol/business/industry_sectors/retailing/article7035964.ece) Following BBCs Panorama documentary, Primark conducted a private investigation, which led them to terminate contracts with three Indian suppliers. A spokesman from Primark stated, We take this lapse in standards very seriously indeed. Under no circumstances would Primark ever knowingly permit such activities, whether directly through its suppliers or through third party sub-contractors. (BBC, 2008). As a direct response to the crisis, Primark created a comprehensive website called www.ethicalprimark.com. This website contained information and videos which strengthened their positive attitude towards values and policies regarding ethical trading. It was targeted at consumers which aimed at eliminating any doubts regarding Primarks sourcing. Primark soon created a new standardised selection process for its suppliers, along with a strict Supplier Code of Conduct. They also went on to formulate a stringent auditing program to avoid such a crisis. Their code of conduct was translated into 26 different languages so that workers in factories understand their rights. In addition, Primark heavily invested in new software from BSI management systems that was designed to help Primark manage its supply chain more effectively. In 2009, Primark established a specialized Ethical Trade Program. It consisted of a Director of Ethical Trade, along with ethical trade staff who was stationed in sourcing countries. Primarks Ethical Trade Strategy aimed at implementing ethical trade policies and ensuring suppliers met the required standards. Through workshops, training and audits this committed team intended to protect the rights of workers within the supply chains. On assessing the compatibility of Primark in terms of its Marketing and Ethics (Lecture Notes) on a scale of one to ten, we would position Primark in Group B category. Based on our reading, it has been targeted victim a number of times for its indulgence in unethical practices. However, it never admitted to the onus of such activities, hence we can say they are responsible and hence, abiding by the law and not Group A. They do not have a set of core, non-financial values and principles that is regarded as one of the most important assets of a companys existence, which strikes them off Group D. Also, they are not strongly committed to being ethical; else they wouldnt have been targeted several times for their morally irresponsible activities. Hence, they do not fall within Group C. Primarks value proposition is provision of cheap clothing. To fulfill the same, they need to keep the cost of production minimal. With this in mind, the companys purpose for existence is to ensure profits f or ABF rather than being socially responsible. They do try to improve ethical standards but not at the cost of reducing their profits. Thus, we think Primark falls under Group B. All companies function differently and can classified and put in different groups based on their ethical standing. As has been shown below: Kolhbergs theory of moral reasoning (Referencing Lecture Notes and URL) Kohlberg suggested that a company progresses in their moral reasoning (i.e., in their bases for ethical behaviour) through a series of stages. He believed that there were six identifiable stages. Stage 1 Organisations behave according to socially acceptable norms and their motive is to abide by the law. Stage 2 Characterised by a view that right behavior means acting in ones self interest. Stage 3 Complying with social norms. Characterised by an attitude, which seeks to do what will gain the approval of others. Stage 4 Oriented to abiding by the law and responding to the obligations of duty. Stage 5 A genuine interest in the welfare of society and prepared to challenge the societal norms when necessary. Stage 6 Belief in universal principles. Based on respect for universal principles and the demands of individual conscience. Referring back to the initial model of categorising companies between Groups A D, we would place Primark at level 2 on the Kohlbergs model of moral reasoning. Primark, as a company is known to act for its self-interest. This level complements its characteristics of Group B. This can be supported by the fact that although Primark has been pointed fingers at several times for their indulgence in unethical practices, their responses have always been the same and nothing has practically been done about it i.e., they have taken the necessary steps to control unethical practices and would try further tighten control over suppliers. (BBC, 2008) 4. CONCLUSION It can be expected to be less about ethics and more about a promise of freedom from moral anxiety when in fact it is that anxiety that is the substance of morality. From this we understand that a company chooses to be as ethical as it really wants to be. From what we gather, Primark would like to be seen as an ethical company. After the expose, Primark made sure they improved their ethical standards as well as their suppliers standards. Primark paid for auditors to ensure the ethical standards of their suppliers, which is a sign of dedication to their ethical stance. As a group, we concluded that even though Primark was at the centre of this scandal, they have been repeatedly targeted by market speculations primarily because they are the big name at the end of the supply chain. One must acknowledge that Primark is not entirely at fault. Its suppliers sub-contracted work to other local vendors, without Primarks knowledge. These sub-contracted vendors had children working in their warehouses, which were overworked and paid sub standard wages. Primarks auditors should have been aware of this. This poses the question of who is responsible for allowi ng these ethical breaches to take place. After the expose, Primark has taken various steps to portray an ethical image and maintain a high level of ethical standards. After sacking suppliers who did not meet their standards, they invested in auditing software, and established a specialized ethical strategy.   So is Primark really at fault or is it easier to blame a giant retailer. The fact remains that Primark and its suppliers were caught again engaging in the same unethical practices, so was Primark turning a blind eye or were they unaware of the situation. The expose hit the public eye during the recession, where people were shopping on the cheap, thereby forcing them to switch to cheaper alternatives.   Does that make your everyday shopper an unethical consumer, or were these consumers forced to shop at Primark solely for economic reasons? If the former is true, Primark and its suppliers will be able to continue trading without a problem.   However, if one dwells on it and the latter is true, the time line for Panorama to have an effect on the minds of the society has faded away. Essentially, it is upto Primarks conscience whether they want to take strict action against their auditors and suppliers ensuring adherence to higher ethical standards, or will they simply portray an image of having taken action to put to rest the allegations against them.

Equity Research Report Hul

EQUITY RESEARCH REPORT (HUL) FMCG SECTOR INDIA OUTLOOK The burgeoning middle class Indian population, as well as the rural sector, present a huge potential for this sector. The FMCG sector in India is at present, the fourth largest sector with a total market size in excess of USD 13 billion as of 2012. This sector is expected to grow to a USD 33 billion industry by 2015 and to a whooping USD 100 billion by the year 2025. This sector is characterized by strong MNC presence and a well established distribution network. In India the easy availability of raw materials as well as cheap labour makes it an ideal destination for this sector.There is also intense competition between the organised and unorganised segments and the fight to keep operational costs low. CHALLENGES TO FMCG SECTOR * Increasing rate of inflation, which is likely to lead to higher cost of raw materials. * The standardization of packaging norms that is likely to be implemented by the Government by Jan 2013 is expected t o increase cost of beverages, cereals, edible oil, detergent, flour, salt, aerated drinks and mineral water. * Steadily rising fuel costs, leading to increased distribution costs. The present slow-down in the economy may lower demand of FMCG products, particularly in the premium sector, leading to reduced volumes. * The declining value of rupee against other currencies may reduce margins of many companies, as Marico, Godrej Consumer Products, Colgate, Dabur, etc who import raw materials. HIGH GROWTH DRIVING FACTOR * Increasing rate of urbanization, expected to see major growth in coming years. * Rise in disposable incomes, resulting in premium brands having faster growth and deeper penetration. * Innovative and stronger channels of distribution to the rural segment, leading to deeper penetration into this segment. Increase in rural non-agricultural income and benefits from government welfare programmes. * Investment in stock markets of FMCG companies, which are expected to grow cons tantly. This sector will continue to see growth as it depends on an ever-increasing internal market for consumption, and demand for these goods remains more or less constant, irrespective of recession or inflation. Hence this sector will grow, though it may not be a smooth growth path, due to the present world-wide economic slowdown, rising inflation and fall of the rupee.This sector will see good growth in the long run and hiring will continue to remain robust DEMAND FOR FMCG SECTOR Confidence of consumer product makers is waning as a delayed  monsoon  and lingering weakness in the economy threaten to subdue revenue growth for the sector in the next two quarters. Several marketers, including Dabur, Marico,  Godrej Consumer Products Ltd  (GCPL),  ITC  and  Emami, fear pressure on premium products and rural demand – two important growth drivers – in the coming months as sustained high  inflation  and a hold-up in monsoon could prompt buyers to tighten purse strings. While the high-end, super-premium segment does not get impacted by inflation, demand in the mass premium segment could contract if overall economic sentiment does not improve,† said Sunil Duggal, CEO ofDabur India, the maker of Real juices and Vatika shampoo. ABOUT HUL HUL is the market leader in Indian consumer products with presence in over 20 consumer categories such as soaps, tea, detergents and shampoos amongst others with over 700 million Indian consumers using its products. Seventeen of HUL’s brands featured in the  ACNielsen  Brand Equity list of 100 Most Trusted Brands Annual Survey (2011).The company also happens to have the highest number of brands in this list, with six brands featuring in the top 15 list. The company has a distribution channel of 6. 3 million outlets and owns 35 major Indian brands. Its brands include LABOR COST IN INDIA IS THE LOWEST AMONG THE EMERGING ASIAN COUNTRIES HUL RATIOS RATIO| 2012| 2011| 2010| 2009| 2008| Curre nt Ratio| 0. 8954| 0. 9000| 0. 81268| 0. 9834| 0. 65823| Quick Ratio| 0. 4978| 0. 4711| 0. 48604| 0. 5436| 0. 27253| Cash Flow Liquidity ratio| 0. 6038| 0. 5519| 0. 80573| 0. 6679| 0. 38392| Average Collection Period| 13. 343| 17. 560| 14. 0918| 10. 01| 12. 2710| Days Inventory Held| 48. 957| 59. 526| 53. 1215| 51. 365| 60. 4530| Days Payable Outstanding| 73. 481| 81. 979| 104. 886| 66. 724| 87. 8556| Account Receivable turnover| 27. 355| 20. 785| 25. 9014| 36. 494| 29. 7448| Accounts Payable Turnover| 3. 6017| 3. 0947| 2. 43856| 3. 9712| 3. 01573| Inventory Turnover| 5. 4059| 4. 2619| 4. 81485| 5. 1589| 4. 38272| Fixed assets turnover| 10. 36| 9. 01| 8. 01| 12. 34| 8. 87| Total Assets Turnover| 4. 9807| 5. 4970| 6. 59332| 7. 9313| 8. 55871| Debt Ratio| 0| 0| 0. 00402| 0. 1683| 0. 06321| LONG TERM DEBT TO CAPITAL EMPLOYED| 0| 0| 0. 00402| 0. 683| 0. 06321| gross profit ratio| 16. 449| 40. 107| 41. 4842| 49. 423| 51. 688| Operating Profit Ratio| 16. 456| 15. 911| 16. 8758| 15. 909| 1 8. 0540| Net Profit Ratio| 11. 947| 11. 520| 12. 2033| 12. 268| 13. 8754| Return on Investments| 59. 509| 63. 326| 80. 4618| 97. 307| 118. 755| Return on Equity| 76. 068| 84. 339| 81. 1040| 117. 42| 127. 232| Cash Return on Assets| 0. 4351| 0. 5281| 1. 29341| 0. 7963| 1. 07195| Price to Earning| 18. 569| 26. 227| 30. 0113| 37. 728| 56. 8245| Peer comparison s. no. | Name | Market capitalisation| Sales turnover| Net profit | Total assets| 1| GODREJ| 22933. 3| 2980. 08| 604. 39| 2761. 43| 2| DABUR| 22448. 83| 3759. 33| 463. 24| 1576. 54| 3| MARICO| 13361. 56| 2970. 30| 336. 58| 1677. 27| 4| EMAMI| 9101. 40| 1389. 82| 256. 81| 804. 23| 5| P&G| 8103. 50| 1297. 41| 181. 29| 600. 62| 6| GILLETTE| 7130. 13| 1232. 90| 75. 73| 600. 33| 7| JYOTHY LABS| 2860. 82| 662. 97| 83. 52| 1226. 42| 8| BAJAJ CORP. | 2926. 40| 473. 31| 120. 09| 427. 86| 9| HUL| 118139| 22116. 37| 2691. 40| 3512. 93| BALANCE SHEET OF HUL| ——————- in Rs. Cr. —— Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€-| | Mar '12| Mar '11| Mar '10| Mar '09| Dec '07| | | 12 mths| 12 mths| 12 mths| 15 mths| 12 mths| | | | | | |Sources Of Funds| | | | | | | | | | Total Share Capital| 216. 15| 215. 95| 218. 17| 217. 99| | | | | | | Equity Share Capital| 216. 15| 215. 95| 218. 17| 217. 99| 217. 75| | | | | | Share Application Money| 0. 00| 0. 00| 0. 00| 0. 00| 0. 00| | | | | | Preference Share Capital| 0. 00| 0. 00| 0. 00| 0. 00| | | | | | | Reserves| 3,296. 11| 2,417. 30| 2,364. 68| 1,842. 85| 217. 75| | | | | | Revaluation Reserves| 0. 67| 0. 67| 0. 67| 0. 67| 0. 67| | | | | | Networth| 3,512. 93| 2,633. 92| 2,583. 52| 2,061. 51| 1,439. 24| | | | | | Secured Loans| 0. 00| 0. 00| 0. 00| 144. 65| 25. 2| | | | | | Unsecured Loans| 0. 00| 0. 00| 0. 00| 277. 30| 63. 01| | | | | | Total Debt| 0. 00| 0. 00| 0. 00| 421. 95| 88. 53| | | | | | Total Liabilities| 3,512. 93| 2,633. 92| 2,583. 52| 2,483. 46| 1,527. 77| | | | | | | Mar '12| Mar '11| Mar '10| Mar '09| Dec '07| | | | | | | | 12 mths| 12 mths| 12 mths| 15 mths| 12 mths| | | | | | | Application Of Funds| | | | | | | | | | Gross Block| 3,574. 67| 3,759. 62| 3,581. 96| 2,881. 73| 2,669. 08| | | | | | Less: Accum. Depreciation| 1,416. 88| 1,590. 46| 1,419. 85| 1,274. 95| 1,146. 57| | | | | | Net Block| 2,157. 79| 2,169. 16| 2,162. 11| 1,606. 8| 1,522. 51| | | | | | Capital Work in Progress| 210. 89| 299. 08| 273. 96| 472. 07| 185. 64| | | | | | Investments| 2,438. 21| 1,260. 68| 1,264. 08| 332. 62| 1,440. 81| | | | | | Inventories| 2,516. 65| 2,811. 26| 2,179. 93| 2,528. 86| 1,953. 60| | | | | | Sundry Debtors| 678. 99| 943. 20| 678. 44| 536. 89| 443. 37| | | | | | Cash and Bank Balance| 510. 05| 281. 91| 231. 37| 190. 59| 200. 11| | | | | | Total Current Assets| 3,705. 69| 4,036. 37| 3,089. 74| 3,256. 34| 2,597. 08| | | | | | Loans and Advances| 1,314. 72| 1,099. 72| 1,068. 31| 1,196. 95| 1,083. 28| | | | | | Fixed Deposits| 1,319. 9| 1,358. 10| 1,660. 84| 1,586. 76| 0. 75| | | | | | Total CA, Loans & Ad vances| 6,340. 40| 6,494. 19| 5,818. 89| 6,040. 05| 3,681. 11| | | | | | Deffered Credit| 0. 00| 0. 00| 0. 00| 0. 00| 0. 00| | | | | | Current Liabilities| 5,688. 44| 6,264. 21| 5,493. 97| 4,440. 08| 4,028. 41| | | | | | Provisions| 1,945. 92| 1,324. 98| 1,441. 55| 1,527. 98| 1,273. 90| | | | | | Total CL & Provisions| 7,634. 36| 7,589. 19| 6,935. 52| 5,968. 06| 5,302. 31| | | | | | Net Current Assets| -1,293. 96| -1,095. 00| -1,116. 63| 71. 99| -1,621. 20| | | | | | Miscellaneous Expenses| 0. 00| 0. 00| 0. 00| 0. 0| 0. 00| | | | | | Total Assets| 3,512. 93| 2,633. 92| 2,583. 52| 2,483. 46| 1,527. 76| | | | | | CAPITAL ASSET PRICING METHOD 1. REQUIRED RATE OF RETURN = Risk free return +? (Risk premium) Ri = Rf + ? (Rm – Rf) = 8. 1 +0. 27 (6. 5) Ri = 9. 855% 2. ZERO GROWTH MODEL Where, dividend = Rs. 7. 5 Po = d/r = 7. 5/9. 855% Po = 76. 10 3. CONSTANT GROWTH MODEL (GORDON MODEL) PO = DO(1+g) r-g d1 r-g Where , growth rate = historical growth of average dividend paid of last 5 years g = 6. 75% = 7. 5(1+6. 75%) (9. 855-6. 75)% PO = 258. 266 4. Implicit growth P0 = d1 R – g Where, po = 534. 25, d1=8. 006 , r= 9. 855% P0 = d1 R – g 534. 25= 8. 006/ (0. 098-g) G= 0. 083 or 8. 3% Cash flow model Ri = 9. 855% Calculation of growth rate of cash flows =(1. 69*1. 51*. 54)1/3 -1 = . 1128 =11. 28% Assuming the abnormal growth of (11. 8%) is for 2 years, and after this the company is back to normal growth trajectory of 6% growth rate Cash flow from operation = 2884. 24 crore Vc = 2884. 24(1+. 1128)/(1+. 09) + 2884. 24(1+. 1128)2/(1+. 09)2 + 2884. 24(1+. 1128)2(1+. 06) (9. 855-6)% (1. 09)2 Vc = 88605 Vp = 0 Vd = 1000 Therefore, Ve = Vc – Vp – Vd = 88605-1000 = 85605 crore Total no. of shares outstanding = 216. 15 crore Po = Ve Total no. of shares outstanding = 85605/216. 15 Po = 396. 04 MULTIPLE MODEL p/e of company=32. 95 p/e of industry = 44. 0 price of company’s share = 534. 25 earnings for the company’s stock = price o f co. stock p/e of the co. =534. 25/32. 95 Earnings for the company’s stock = 16. 21 Po = Earning’s of company*P/E of industry =16. 21*44. 50 Po = 721. 345 Analysis: The current market price of the stock is Rs.. 534. 25 , as per the valuation of stock under distinct method , it is assessed that the stock is overvalued therefore new buyers should not invest at this point, whereas, those who are invested in share are advised to sell the share and enjoy the profits Performance of stock in last 1 year

Compare and Constrast Classical China and Classical India

Though they had some different qualities, Classical China and India were very similar. The complexities of both India and China’s social hierarchy systems were very different. However their religious views and ideas were similar, and they both began to decline but were able to recover and maintain stability. Both China and India used social hierarchy systems, but they were used differently. India used a very strict system called Varna, or the caste system. People only associated with people in their class. Marriage outside of your class and helping people in lower classes was absolutely forbidden.People couldn’t even eat or drink with people outside of their class. The Chinese rules of social hierarchy were very different. The Chinese believed in reciprocal respect within relationships. For example, the ruler respects the subject and the subject respects the ruler. Another major difference was the specific levels of the social ladder. The caste system of India had four basic levels: the Brahmins (priests), followed by the Kshatriyas (warriors), then the Vaishyas (work people), and finally the Shudras (peasants).All four of these castes were divided into subgroups called jati. This system was very complex and stratified and a person could not change castes. The Chinese only had three steps on their social ladder. On top was the educated bureaucrats and landowners. The peasants and the urban artisans were in the middle class and the â€Å"mean† or meaningless people were at the bottom. Priests in India were considered very powerful and they were at the top of society. The Classical Chinese emperors used a centralized religion called Confucianism and a priest class wasn’t necessary.There was other religions in China but the priests were isolated from the rest of the population. The Chinese social system was very simple and the Indian caste system was more specific. India and China used different hierarchy systems, but they had similar r eligious views and ideas. At this point in time Hinduism was very popular in India and the Chinese emperors stressed confucian ideas. Hinduism and Confucianism were very similar. In both religions there was no specific gods to be worshiped, but there was religious shrines.People were obedient to confucianism because it stressed respect to all people. The goal of Hinduism was to free your soul and reach moksha. In order to do so people had to follow the rules and do the right thing. Confucianism and Hinduism worked because all people benefited from them. Another major similarity of India and China was the cause and effects of the declines of their golden ages. Both India and China had strong enough civilizations to withstand the challenges they faced and not completely fall.Because of China’s strong political system and because of India’s uniform religion, both civilizations were able to recover and revive themselves. Nomadic invaders attacked both civilizations and thi s was a setback but strong emperors helped regain order. The strength of the political systems was also challenged. Arab invaders tried to convert India to Islam but failed because Indian religious leaders worked to strengthen HInduism. In China bureaucrats became corrupt and started fighting for power and assassinating each other.Thankfully the Sui and Tang dynasties worked to regain power and they restored Confucianism because they knew it worked in the past. India and China lost power but they were able to maintain stability. China and India had some qualities that contrast each other, but the two civilizations were very similar. Their social hierarchy systems were different, but they shared common religious views and ideas, they both suffered a decline but they were able to recover and maintain stability.

Metamorphosis Essay - 941 Words

People who become gay or lesbian have to deal with the rejection from their family members and all the problems they face, due to what their sexual identity is. This problem leads into the book Metamorphosis, which Franz Kafka used many different characters, the plot, and setting to show many allegories. However, this is about how Gregor is facing this problem of being a bug, which is an allegory representing someone who is gay or lesbian and facing the same problems. It is shown through how his parents grieve for him, his eating disorder, and how his family is trying to ignore him. Gregor coming out of his room as a bug is an allegory of a family member coming out and telling their family that they are gay or lesbian. Grieving of the†¦show more content†¦But Gregor begins to like different foods, that he does not normally eat. It is like when Gays and lesbians have trouble eating, due to all of the stress. Since everyone around them, even their family is ignoring them and l ook poorly upon them. This is what Gregor feels, he is stressed out about what has happened to him and that his family is not helping him at all. That is why he is not eating his food, while his family still does not help him and it eventually leads up to his death. His family begins to try and ignore that he is there and hope it goes away. His family is trying to ignore that he is there, Other times he was not at all in the mood to look after his family, he was filled with simple rage about the lack of attention he was shown†¦ (41). His family starts to go on with their lives and forget about Gregor, who is still in his room. They go off to work in different jobs, come home and take care of three gentlemen. His sister almost stops cleaning his room now and just quickly goes in and gets out to give him his food. Trying to get out and go off to do her work or something else. While Gregor is getting mad about getting no attention from his family. Like what happens with people who are gay or lesbian, their families try to forget what has happened to one of their family members. So they could get on with their lives and leave the â€Å"disgrace† of the family behind. Which is what is happening with Gregor and his family. His family isShow MoreRelated The Metamorphosis- Critical Essay718 Words   |  3 PagesRichter agreed that Kafka was a very prominent figure in world literature and was amazed by his mechanics and word usage. I feel that his essay is supportive of Kafka’s writing, but also leaves out many important details in its brevity. Richter did not include Kafka’s flaws and tendencies in his essay. Helmut Richter analyzed the plot of The Metamorphosis in his essay. He depicts the main plot of the story to be Gregor’s failure at his work, which leads to his death. The climax of the story starts offRead MoreEssay on Metamorphosis1359 Words   |  6 PagesMetamorphosis In the short story, Metamorphosis, the narrator describes Gregor’s new life as an insect. He then goes on to describe Gregor’s sister, Grete, with a reflection of Gregor’s opinion in the description. Kafka employs a number of stylistic devices including descriptive imagery, metaphors, and symbolism in the passage to describe the situation. While these devices on their own just provide a more complex method of painting the situation, the way they are assembled in the passage Read MoreMetamorphosis Alienation Essay970 Words   |  4 Pages Metamorphosis by Franz Kafka Alienation Essay Alienation is the primary theme in Kafkas The Metamorphosis. Much of early twentieth-century literature makes as its basic premise that man is alienated from his fellow humans and forced to work in dehumanizing jobs in order to survive. There is no choice for most in this matter. Gregor Samsa, the protagonist in The Metamorphosis, awakes from a dream to find he has become an insect. He wonders what happened, and tells himself it is notRead More Essay on Metamorphosis of the Family in Kafkas Metamorphosis1868 Words   |  8 PagesMetamorphosis of the Family in Kafkas Metamorphosis      Ã‚   In Franz Kafkas Metamorphosis, the nature of Gregor Samsas reality changes insignificantly in spite of his drastic physical changes. Gregors life before the metamorphosis was limited to working and caring for his family. As a traveling salesman, Gregor worked long, hard hours that left little time to experience life. He reflects on his life acknowledging the plague of traveling: the anxieties of changing trains, the irregular,Read MoreThe Metamorphosis Essay1588 Words   |  7 PagesSociety Determines Identity, Not Individuals The Metamorphosis, a story written by Franz Kafka, is about the sudden transformation of Gregor Samsa into a bug. The narrator describes how Gregor’s transformation negatively affects his work, family, and social relationships; it also takes readers through Gregor’s journey of trying to regain his humanity. Throughout the story, Gregor denies his loss of humanity and attempts to preserve his previous work and family relationships because these relationshipsRead MoreFranz Kafkas The Metamorphosis Essay1105 Words   |  5 PagesIn this paper I will interpret the short story, The Metamorphosis, by Franz Kafka. My purpose is to explain to my classmates the short story’s goal what Kafka wanted to transmit to people. I want to expand more why this short story is considered one of the best poetic imagination works. In my research I expect to use Kafka’s work, The Metamorphosis as my primary source. Important other sources include essay critiques from different editors, which will help us to understandRead More The Metamorphosis Essay1716 Words   |  7 PagesThe Metamorphosis The longer story The Metamorphosis, first published in 1971, was written by Franz Kafka. He was born in Prague in 1883 and lived until 1924, and he has written many other stories along with The Metamorphosis. The Metamorphosis appears to be a fantastic piece. After reading The Metamorphosis, I do believe that there are many similarities between magical realism and fantastic literature. Kafka showed many fantastic issues in The Metamorphosis. While reading The MetamorphosisRead MoreMetamorphosis Essay1033 Words   |  5 Pages Franz Kafka wrote the famous Metamorphosis, I believe this short story to be integrated with the life Kafka once lived. In this paper, I intend on interpreting the metamorphosis that undergoes the Samsa family. In view of this, I asked myself an important question, what if I view Gregor Samsa’s transformation as a metaphor while considering Grete Samsa, Gregor’s sister, transformation as literal. In addition, there are four family members that make up the Samsas. Gregor Samas, being the protagonistRead MoreThe Metamorphosis Essay754 Words   |  4 PagesIn Franz Kafka’s The Metamorphosis, Gregory Samsa is transformed into a giant bug. He wakes and wonders what has happened to him. As he is trying to get out of bed his mother comes to his door reminding him that he has to be at work. This alarmed others in the home so his father comes to check on him, then his sister, she whisp ered ‘â€Å"Gregory, open the door, please†Ã¢â‚¬â„¢ (Kafka, 2006, p.1968). He is trying every way he can to get himself together to get out of bed but is finding it difficult as he doesn’tRead MoreMetamorphosis into Humanity Essay714 Words   |  3 PagesFranz Kafka’s uses of symbolism throughout Metamorphosis help the audience grip the appreciation of Gregor’s drive towards humanity and independence. The transformation in this book is used as a symbol for Gregor’s metamorphosis to humanity. Even though none of us should ever wake up and experience the emotion of changing into a giant bug, the hardship Gregor felt is a sample that is relevant to us in different ways. Throughout the story, we see numerous symbols that show the ultimate symbol of