Edelweiss Capital Limited Case Study

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INTRODUCTION EDELWEISS CAPITAL LIMITED Edelweiss capital limited is listed amongst the India’s leading provider of financial services. The range of services offered varies from providing investment banking, institutional equities, private client broking, asset management and investment advisory services, wealth management, insurance broking and wholesale financing services to large firms and individuals SUCCESS STORY Rakish Shah, a Gujarati businessman was the first one in his family to study in an English-medium school. Unlike the trend of boys joining their father's business he continued to pursue his studies .Successful in convincing his father to mortgage their Pedal Road house in the mid-1990s to raise seed capital for…show more content…
This ratio is also known as interest coverage ratio. This ratio is obtained by dividing profit before interest and tax by fixed interest charges. Lenders are most interested in knowwing the debt service coverage because they will find it profitable to lend to the firm only if it sees that the firm has sufficient funds available to repay the principal amount and the interest…show more content…
This indicates that Dabur has sufficient funds to service its debt obligation. However too high ratio in Dabur may indicate that Dabur is not utilizing its borrowing capacity effectively. RETURN ON INVESTMENT This ratio reflects the overall profitability of the business. It is calculated by comparing the profit earned and the capital employed to earn it. It is also known as rate of return or return on capital employed or yield on capital. Return on investment = net profit before interest, tax and dividend *100/capital employed Capital employed = shareholders fund + noncurrent liabilities (long term borrowings +long term provisions) Or Capital employed = noncurrent assets + working capital It basically compares the magnitude and duration of investment gains directly with the magnitude and timing of costs. A high ROI means that there are more gains and will provide over and above the capital

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