Research Area/Topic:

The topic of my project is Financial Analysis of Performance of Mount Everest Mineral Water Ltd.

A brief Introduction about the company and department:

Company: Mount Everest Mineral Water Limited is a public limited company incorporated in 1991 with its plant at Dhaula Kuan in Sirmour District of Himachal Pradesh. The Company was promoted by Dr. Dadi Balsara, an NRI from Singapore. It had its first public issue in 1995. The companys registered office is located at Himachal Pradesh. The Tata group, through Tata Tea, has acquired 31.73% holding in the Company partly by purchase of shares from the investors, who had bought the shares from Dr. Balsara in 2001, and partly by preferential allotment. Tata Tea, being the single largest shareholder of the company, and with the management being firmly with the Tata group, the company is now A TATA Enterprise. The plant is utilized to bottle natural mineral water under the brand name HIMALAYAN together with in-house facility to manufacture food grade PET Bottles and tamper proof caps. The company started its commercial production in April 1997. Himalayan natural mineral water is available in six pack sizes namely, 2 ltr, 1.5 ltr, 1 ltr, 750 ml, 500 ml, and 200 ml. The water is sourced from a large pristine and protected aquifer which flows well below the earths surface. The water is collected in the catchment area and travels through rocks, clay and soil, thereby collecting the minerals available therein. The process of traveling from the catchment area, reaching the acquifer and then being bottled takes a period of over 20 years. The acquifer has a recharge capacity of 1 billion litres every year. The company and the product enjoy the certification of various authorities like HACCP, BIS and ISI in India. Himalayan is the only natural mineral water from India, internationally accredited by the US FDA, the health ministries of Japan and France, the European Union and the Institute de Fresenius, Germany. Under the previous management the product was sold largely in the Institutional and foodservices segment. The company now proposes to expand its retail distribution network by appointing consignee and distributors agents in various parts of the country. The companys existing clientele includes 5 Star Hotels, Airlines, Embassies etc, and tie-ups with A category retail outlets, modern retail (malls), multiplexes, hyper marts, finedine restaurants are also in the offing.

Department: I work in the financial department which carries out various where yearly financial accounts based on cash flow, vertical income statement and balance sheet and ratios.

Drawbacks of existing system:

The company achieved a turnover of Rs.1908 lacs for the year, as compared to a previous year figure of Rs 2199 lacs. The reduction in other income is a result of a reduction in the surplus funds. The other income also includes a sum of Rs 100 lacs charged to Tata Tea Limited, being fees for the development of new products.

Need for the study:

The company for the past 3 years is in a state of loss. Currently its in joint venture with PepsiCo. It is required to study the causes of loss and the benefits of joint venture.

Project objectives:
The purpose of the project is to get the know-how of the working of the finance department of my company Mount Everest Mineral Water Ltd. and to analyze the performance of the company through the financial information available with the financial department. It includes research on responsibility finance department takes for organizing the financial and accounting affairs including the preparation and presentation of appropriate accounts, and the provision of financial information for managers. The duties of the financial department include bookkeeping, maintaining profit and loss account, updating managers and financing. Mount Everest Mineral Water Ltd. was years back and so Ill be comparing the company using the financial ratios. This shortcomings of the company at present its performance. acquired by TATA Tea Ltd. just 3 performance of last 3 years of the study would help to determine the and what all is required to improve

Use of financial software Tally would help me in gathering these date.