Itc Limited

ITC LIMITED

INTRODUCTION:-

ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the Company's ownership progressively Indianised, the name of the Company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio encompassing a wide range of businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agri-business, Foods, Lifestyle Retailing, Education & Stationery and Personal Care - the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC LIMITED

ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for ITC's Cigarettes business.

In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'

In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited

In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture

In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a major supplier of tissue paper to the cigarette industry

In 2000, ITC forayed into the Greeting, Gifting and Stationery products business with the launch of Expressions range of greeting cards. A line of premium range of notebooks under brand “Paperkraft”was launched in 2002.

It began in August 2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002, ITC entered the confectionery and staples segments with the launch of the brands mint-o and Candy man confectionery and Aashirvaadatta (wheat flour). 2003 witnessed the introduction of Sun feast as the Company entered the biscuits segment. ITC's entered the fast growing branded snacks category with Bingo! in 2007

In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value chain found yet another expression in the Safety Matches initiative. ITC now markets popular safety matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro.

ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care products for men and women in July 2005.  Essenza Di Wills, 'Fiama Di Wills', 'Superia,  Vivel De Wills & Vivel,

ITC’s corporate strategies are :

Create multiple drivers of growth by developing a portfolio of world class businesses that best matches organizational capability with opportunities in domestic and export markets.

Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging, Agri Business and Information Technology.

Benchmark the health of each business comprehensively across the criteria of Market Standing, Profitability and Internal Vitality.

Ensure that each of its businesses is world class and internationally competitive.

Enhance the competitive power of the portfolio through synergies derived by blending the diverse skills and capabilities residing in ITC’s various businesses.

Create distributed leadership within the organisation by nurturing talented and focused top management teams for each of the businesses.

BUSINESS AREA OF ITC

FMCG:- Cigarettes & cigars Foods Lifestyle & retailing’s Personal care Education and stationary Safety matches Agarbattis

HOTELS:-

ITC Hotels - Luxury Collection ITC Royal Gardenia ITC Green Centre ITC Welcomgroup - Empowering Differently-abled people

PAPERBOARD AND PACKAGING:-

Paper boards and specially papers Packaging

AGRI BUSINESS:-

Agri commodities & rural services E-choupal Leaf tobacco Spices& agri inputs

INFORMATION TECHNOLOGY :

Banking, Financial Services & Insurance (BFSI), Consumer Packaged Goods (CPG) Retail, Manufacturing & Engineering Services, Travel, Hospitality Transportation and Media Entertainment.

FINANCIAL STATEMENTS OF ITC LIMITED.

Financial statement may refer to any statement or document which discloses financial information relating to business concern but technically financial statement includes income statement or profit & loss account and balance sheet .

Financial statements

Income statement or trading & p/l account Position statement or balance sheet Statement of retained earning Statement of changes in financial position

Tools and techniques of analysis and interpretation :-

1. Comparative financial statement or analysis ,2. Common –size statement or analysis 3. Trend analysis 4. Ratio analysis 5. Fund flow statement 6. Cash flow statement

Comparative financial statement or analysis :- It is an important horizontal Technique in which financial data of two or more period (year) are presented in a comparative from .

a) A comparative income statement show the comparison of various items of cost ,expenses and final the result in form of net profit and net loss.Percent change =absolute change /figure of the previous year *100

b) A comparative balance sheet reveals the position of assets and liabilities on two or more different data along with changes in these items .

Common –size statement or analysis :-

Common size financial statement facilities both of analysis i.e. ., horizontal as well as vertical. This statement indicates the relationship of various items in terms of percentage with some common or basis items .it expressed the net sale in term of percentage.

Trend analysis:-

This analysis is an important tool of horizontal financial analysis .under this method ratio are calculated for selected items of the financial statement taking the figure of the base year as 100 and for this purpose the following formula may be used

Trend ratio =current year amount /base year amount *100

Ratio analysis:-

Ratio analysis is also an important method of analysis of financial statement .it is adopted to establish meaningful mathematical relation between two items or two group of items show in financial statement.

Fund flow statement :-

Financial statement can also be analyzed by preparing fund flow statement and in that case it is known as fund flow analysis .This statement is prepared in order to reveal the source from which funds are obtained the uses to which they are being put. here fund stand for working capital .

Cash flow statement:-

This technique is very useful in the management of cash and analysis of short term liquidity .under this method a statement is prepared to show the inflow and outflow of cash related to various activities in the concern during a specific period..

OBJECTIVE OF ANALYSIS AND INTERPRETATION:-

To determine and examine the current earning capacity and to estimate future prospects.

To estimate overall as well as segment wise performance efficiency and managerial ability in a business concern

To determine long term as well as segment wise performance efficiency and managerial ability in a business concern.

To forecast the future result and prepare the budgets

RESEARCH METHOLOGY :-

STUDY: - This Research is based on analysis and interpretation of financial statement, to know the financial position of the company, identify financial weakness of the firm and to suggest remedial.

DATA COLLECTION:-

Primary data Secondary data

Primary data:-

Primary data are those which are collated a fresh and for the first time & thus happen to be original in character. Primary data is obtained by the study specially designed to fulfill the data needs to problem hand. Such data are original in characters generated by the way of conducting survey

Secondary data:-

Secondary data are those which have already been collected by someone else and which have already been passed through the statistical process. Secondary data consists of not only published records and reports but also unpublished records.

We are using secondary data in our research..

BALANCE SHEET OF ITC COMPANY :-

BALANCE SHEET Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds

Total Share Capital 375.52 376.22 376.86 377.44 381.82

Equity Share Capital 375.52 376.22 376.86 377.44 381.82

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 8,626.79 10,003.78 11,624.69 13,302.55 13,628.17

Revaluation Reserves 59.17 57.08 56.12 55.09 54.39

Networth 9,061.48 10,437.08 12,057.67 13,735.08 14,064.38

Secured Loans 25.91 60.78 5.57 11.63 0.00

Unsecured Loans 93.82 140.10 208.86 165.92 107.71

Total Debt 119.73 200.88 214.43 177.55 107.71

Total Liabilities 9,181.21 10,637.96 12,272.10 13,912.63 14,172.09

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds

Gross Block 6,227.17 7,134.31 8,959.70 10,558.65 11,967.86

Less: Accum. Depreciation 2,065.44 2,389.54 2,790.87 3,286.74 3,825.46

Net Block 4,161.73 4,744.77 6,168.83 7,271.91 8,142.40

Capital Work in Progress 399.97 1,130.20 1,126.82 1,214.06 1,008.99

Investments 3,517.01 3,067.77 2,934.55 2,837.75 5,726.87

Inventories 2,636.29 3,354.03 4,050.52 4,599.72 4,549.07

Sundry Debtors 547.96 636.69 736.93 668.67 858.80

Cash and Bank Balance 67.47 103.54 153.34 68.73 120.16

Total Current Assets 3,251.72 4,094.26 4,940.79 5,337.12 5,528.03

Loans and Advances 1,188.42 1,390.19 1,949.29 2,150.21 1,929.16

Fixed Deposits 788.35 796.62 416.91 963.66 1,006.12

Total CA, Loans & Advances 5,228.49 6,281.07 7,306.99 8,450.99 8,463.31

Deffered Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 2,736.95 3,113.01 3,619.76 4,121.59 4,619.54

Provisions 1,389.04 1,472.84 1,645.33 1,740.49 4,549.94

Total CL & Provisions 4,125.99 4,585.85 5,265.09 5,862.08 9,169.48

Net Current Assets 1,102.50 1,695.22 2,041.90 2,588.91 -706.17

Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00

Total Assets 9,181.21 10,637.96 12,272.10 13,912.63 14,172.09

Contingent Liabilities 98.72 129.56 308.08 261.36 258.73

Book Value (Rs) 23.97 27.59 31.85 36.24 36.69

IN COME STATEMENT OF ITC LIMITED.:-

Profit & Loss account of ITC ------------------- in Rs. Cr. -------------------

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Income

Sales Turnover 16,236.42 19,519.99 21,467.38 23,247.84 26,399.63

Excise Duty 6,438.09 7,206.16 7,435.18 8,262.03 7,832.18

Net Sales 9,798.33 12,313.83 14,032.20 14,985.81 18,567.45

Other Income 203.20 276.22 516.50 426.21 545.05

Stock Adjustments 135.68 322.96 32.46 630.30 -447.54

Total Income 10,137.21 12,913.01 14,581.16 16,042.32 18,664.96

Expenditure

Raw Materials 4,265.72 5,807.48 6,307.79 6,864.96 7,140.69

Power & Fuel Cost 245.17 253.00 309.90 394.12 387.34

Employee Cost 541.40 630.15 745.00 903.37 1,014.87

Other Manufacturing Expenses 50.08 65.32 73.52 402.88 413.79

Selling and Admin Expenses 1,042.51 1,299.17 1,609.33 1,684.41 2,093.87

Miscellaneous Expenses 416.54 601.28 682.72 516.90 1,008.91

Preoperative Exp Capitalised -15.78 -42.52 -112.75 -72.55 -71.88

Total Expenses 6,545.64 8,613.88 9,615.51 10,694.09 11,987.59

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Operating Profit 3,388.37 4,022.91 4,449.15 4,922.02 6,132.32

PBDIT 3,591.57 4,299.13 4,965.65 5,348.23 6,677.37

Interest 21.10 16.04 24.61 47.65 90.28

PBDT 3,570.47 4,283.09 4,941.04 5,300.58 6,587.09

Depreciation 332.34 362.92 438.46 549.41 608.71

Other Written Off 0.00 0.00 0.00 0.00 0.00

Profit Before Tax 3,238.13 3,920.17 4,502.58 4,751.17 5,978.38

Extra-ordinary items 46.13 61.94 117.41 81.52 48.65

PBT (Post Extra-ord Items) 3,284.26 3,982.11 4,619.99 4,832.69 6,027.03

Tax 1,027.57 1,263.07 1,480.97 1,565.13 1,965.43

Reported Net Profit 2,235.35 2,699.97 3,120.10 3,263.59 4,061.00

Total Value Addition 2,279.92 2,806.40 3,307.72 3,829.13 4,846.90

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 995.12 1,166.29 1,319.01 1,396.53 3,818.18

Corporate Dividend Tax 139.58 198.21 224.17 237.34 634.15

Per share data (annualised)

Shares in issue (lakhs) 37,551.79 37,622.23 37,686.10 37,744.00 38,181.77

Earning Per Share (Rs) 5.95 7.18 8.28 8.65 10.64

Equity Dividend (%) 265.00 310.00 350.00 370.00 1,000.00

Book Value (Rs) 23.97 27.59 31.85 36.24 36.69

FUND FLOW STATEMENT:-

SOURCE OF FUNDS Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds

Total Share Capital 375.52 376.22 376.86 377.44 381.82

Equity Share Capital 375.52 376.22 376.86 377.44 381.82

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 8,626.79 10,003.78 11,624.69 13,302.55 13,628.17

Revaluation Reserves 59.17 57.08 56.12 55.09 54.39

Networth 9,061.48 10,437.08 12,057.67 13,735.08 14,064.38

Secured Loans 25.91 60.78 5.57 11.63 0.00

Unsecured Loans 93.82 140.10 208.86 165.92 107.71

Total Debt 119.73 200.88 214.43 177.55 107.71

Total Liabilities 9,181.21 10,637.96 12,272.10 13,912.63 14,172.09

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of FundsGross Block 6,227.17 7,134.31 8,959.70 10,558.65 11,967.86

Less: Accum. Depreciation 2,065.44 2,389.54 2,790.87 3,286.74 3,825.46

Net Block 4,161.73 4,744.77 6,168.83 7,271.91 8,142.40

Capital Work in Progress 399.97 1,130.20 1,126.82 1,214.06 1,008.99

Investments 3,517.01 3,067.77 2,934.55 2,837.75 5,726.87

Inventories 2,636.29 3,354.03 4,050.52 4,599.72 4,549.07

Sundry Debtors 547.96 636.69 736.93 668.67 858.80

Cash and Bank Balance 67.47 103.54 153.34 68.73 120.16

Total Current Assets 3,251.72 4,094.26 4,940.79 5,337.12 5,528.03

Loans and Advances 1,188.42 1,390.19 1,949.29 2,150.21 1,929.16

Fixed Deposits 788.35 796.62 416.91 963.66 1,006.12

Total CA, Loans & Advances 5,228.49 6,281.07 7,306.99 8,450.99 8,463.31

Deffered Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 2,736.95 3,113.01 3,619.76 4,121.59 4,619.54

Provisions 1,389.04 1,472.84 1,645.33 1,740.49 4,549.94

Total CL & Provisions 4,125.99 4,585.85 5,265.09 5,862.08 9,169.48

CASH FLOW STATEMENT :-

Cash flow  Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Profit before tax 6,015.31 4,825.74 4,571.77 3,926.70 3,269.19

Net cash flow-operating activity 4,630.65 3,279.03 2,722.96 2,141.19 1,929.68

Net cash used in investing activity -3,531.56 -1,260.74 -1,736.78 -1,082.78 -175.31

Net cash used in fin. activity -1,009.86 -1,556.15 -1,316.09 -1,014.07 -954.21

Net inc/dec in cash and equivlnt 89.23 462.14 -329.91 44.34 800.16

Cash and equivalent begin of year 993.70 570.25 900.16 855.82 55.66

Cash and equivalent end of year 1,082.93 1,032.39 570.25 900.16 855.82

COMPARATIVE STATEMENT & ANALYSIS :-

BALANCE SHEET OF ITC

particular Mar '09 Mar1 increase/decrease %increase/decrease

12 mths 12 mths Total Share Capital 377.44 381.82 4.38 1.160449343Equity Share Capital 377.44 381.82 4.38 1.160449343Share Application Money 0 0 0 0Preference Share Capital 0 0 0 0Reserves 13,302.55 13,628.17 325.62 2.447801361

Revaluation Reserves 55.09 54.39 -0.7 -1.27064803Networth 13,735.08 14,064.38 329.3 2.397510608Secured Loans 11.63 0 -11.63 -100Unsecured Loans 165.92 107.71 -58.21 -35.08317261Total Debt 177.55 107.71 -69.84 -39.33539848Total Liabilities 13,912.63 14,172.09 259.46 1.864924173 

Application Of Funds Gross Block 10,558.65 11,967.86 1,409.21 13.3464979Less: Accum. Depreciation 3,286.74 3,825.46 538.72 16.39070934Net Block 7,271.91 8,142.40 870.49 11.97058269Capital Work in Progress 1,214.06 1,008.99 -205.07 -16.89125743Investments 2,837.75 5,726.87 2,889.12 101.810237Inventories 4,599.72 4,549.07 -50.65 -1.101153983

Sundry Debtors 668.67 858.8 190.13 28.43405566Cash and Bank Balance 68.73 120.16 51.43 74.82904118Total Current Assets 5,337.12 5,528.03 190.91 3.577022814

Loans and Advances 2,150.21 1,929.16 -221.05 -10.28039122Fixed Deposits 963.66 1,006.12 42.46 4.40611834Total CA, Loans & Advances 8,450.99 8,463.31 12.32 0.145781737Deffered Credit 0 0 0.00 0Current Liabilities 4,121.59 4,619.54 497.95 12.08150253Provisions 1,740.49 4,549.94 2,809.45 161.4171871

Total CL & Provisions 5,862.08 9,169.48 3,307.40 56.42024674Net Current Assets 2,588.91 -706.17 -3,295.08 -127.2767304Miscellaneous Expenses 0 0 0.00 0Total Assets 13,912.63 14,172.09 259.46 1.864924173 

Contingent Liabilities 261.36 258.73 -2.63 -1.00627487Book Value (Rs) 36.24 36.69 0.45 1.241721854

INTERPRETATION :-

COMPARATIVE ANALYSIS OF INCOME STATEMENT:-

Profit & Loss account of ITC privious year current year absulate change % change

Mar '09 Mar '10

12 mths 12 mths

Income

Sales Turnover 23,247.84 26,399.63 3,151.79 13.55734554

Excise Duty 8,262.03 7,832.18 -429.85 -5.202716524

Net Sales 14,985.81 18,567.45 3,581.64 23.9002096

Other Income 426.21 545.05 118.84 27.88296849

Stock Adjustments 630.3 -447.54 -1,077.84 -171.0042837

Total Income 16,042.32 18,664.96 2,622.64 16.34825886

Expenditure 0.00 0

Raw Materials 6,864.96 7,140.69 275.73 4.016483709

Power & Fuel Cost 394.12 387.34 -6.78 -1.720288237

Employee Cost 903.37 1,014.87 111.50 12.34267244

Other Manufacturing Expenses 402.88 413.79 10.91 2.708002383Selling and Admin Expenses 1,684.41 2,093.87 409.46 24.30880843Miscellaneous Expenses 516.9 1,008.91 492.01 95.18475527Preoperative Exp Capitalised -72.55 -71.88 0.67 -0.923501034

Total Expenses 10,694.09 11,987.59 1,293.50 12.09546581

Mar '09 Mar '10

Operating Profit 4,922.02 6,132.32 1,210.30 24.58949781

PBDIT 5,348.23 6,677.37 1,329.14 24.85196037

Interest 47.65 90.28 42.63 89.46484785

PBDT 5,300.58 6,587.09 1,286.51 24.2711175

Depreciation 549.41 608.71 59.30 10.79339655

Other Written Off 0 0 0.00 0

Profit Before Tax 4,751.17 5,978.38 1,227.21 25.82963775Extra-ordinary items 81.52 48.65 -32.87 -40.32139352PBT (Post Extra-ord Items) 4,832.69 6,027.03 1,194.34 24.71377225

Tax 1,565.13 1,965.43 400.30 25.57615022Reported Net Profit 3,263.59 4,061.00 797.41 24.43352259Total Value Addition 3,829.13 4,846.90 1,017.77 26.57966692Preference Dividend 0 0 0.00 0

Equity Dividend 1,396.53 3,818.18 2,421.65 173.4047962Corporate Dividend Tax 237.34 634.15 396.81 167.1905284Per share data (annualised) 0.00 0Shares in issue (lakhs) 37,744.00 38,181.77 437.77 1.159839975

Earning Per Share (Rs) 8.65 10.64 1.99 23.00578035Equity Dividend (%) 370 1,000.00 630.00 170.2702703

Book Value (Rs) 36.24 36.69 0.45 1.241721854

INTERPRETATION :-

TRAND ANALYSIS OF BALANCESHEET :-

Mar '09 Mar '10 trend %09 trend %10 12 mths 12 mths Sources Of Funds Total Share Capital 377.44 381.82 100 98.85286261Equity Share Capital 377.44 381.82 100 98.85286261Share Application Money 0 0 100 0Preference Share Capital 0 0 100 0

Reserves 13,302.5513,628.1

7 100 97.61068434Revaluation Reserves 55.09 54.39 100 101.2870013

Networth 13,735.0814,064.3

8 100 97.65862413Secured Loans 11.63 0 100 0Unsecured Loans 165.92 107.71 100 154.0432643Total Debt 177.55 107.71 100 164.8407762

Total Liabilities 13,912.6314,172.0

9 100 98.16921851 Mar '09 Mar '10  

12 mths 12 mths Application Of Funds

Gross Block 10,558.6511,967.8

6 100 88.22504608Less: Accum. Depreciation 3,286.74 3,825.46 100 85.91751057Net Block 7,271.91 8,142.40 100 89.30917174Capital Work in Progress 1,214.06 1,008.99 100 120.3242847Investments 2,837.75 5,726.87 100 49.55150021Inventories 4,599.72 4,549.07 100 101.1134144Sundry Debtors 668.67 858.8 100 77.86096879Cash and Bank Balance 68.73 120.16 100 57.19873502Total Current Assets 5,337.12 5,528.03 100 96.54650934Loans and Advances 2,150.21 1,929.16 100 111.4583549Fixed Deposits 963.66 1,006.12 100 95.77982746Total CA, Loans & Advances 8,450.99 8,463.31 100 99.85443048Deffered Credit 0 0 100 0Current Liabilities 4,121.59 4,619.54 100 89.22078822Provisions 1,740.49 4,549.94 100 38.25303191Total CL & Provisions 5,862.08 9,169.48 100 63.93034283

Net Current Assets 2,588.91 -706.17 100-

366.6128553Miscellaneous Expenses 0 0 100 0

Total Assets 13,912.6314,172.0

9 100 98.16921851

TRAND ANALYSIS OF INCOME STATEMENT:-

Profit & Loss account of ITC

Mar '09 TRAND% mar'10 TRAND%

12 mths   12mnths

Income

Sales Turnover 23,247.84 100 26,399.63 113.5573455

Excise Duty 8,262.03 100 7,832.18 94.79728348

Net Sales 14,985.81 100 18,567.45 123.9002096

Other Income 426.21 100 545.05 127.8829685

Stock Adjustments 630.3 100 -447.54 -71.00428367

Total Income 16,042.32 100 18,664.96 116.3482589

Expenditure

Raw Materials 6,864.96 100 7,140.69 104.0164837

Power & Fuel Cost 394.12 100 387.34 98.27971176

Employee Cost 903.37 100 1,014.87 112.3426724

Other Manufacturing Expenses 402.88 100 413.79 102.7080024

Selling and Admin Expenses 1,684.41 100 2,093.87 124.3088084

Miscellaneous Expenses 516.9 100 1,008.91 195.1847553

Preoperative Exp Capitalised -72.55 100 -71.88 99.07649897

Total Expenses 10,694.09 100 11,987.59 112.0954658

Mar '09 Mar '10

Operating Profit 4,922.02 100 6,132.32 124.5894978

PBDIT 5,348.23 100.00 6,677.37 124.8519604

Interest 47.65 100 90.28 189.4648478

PBDT 5,300.58 100 6,587.09 124.2711175

Depreciation 549.41 100 608.71 110.7933966

Other Written Off 0 100 0 0

Profit Before Tax 4,751.17 100 5,978.38 125.8296378

Extra-ordinary items 81.52 100 48.65 59.67860648

PBT (Post Extra-ord Items) 4,832.69 100 6,027.03 124.7137722

Tax 1,565.13 100 1,965.43 125.5761502

Reported Net Profit 3,263.59 100.00 4,061.00 124.4335226

Total Value Addition 3,829.13 100 4,846.90 126.5796669

Preference Dividend 0 100 0 0

Equity Dividend 1,396.53 100 3,818.18 273.4047962

Corporate Dividend Tax 237.34 100 634.15 267.1905284

Per share data (annualised) 0

Shares in issue (lakhs) 37,744.00 100 38,181.77 101.15984

Earning Per Share (Rs) 8.65 100 10.64 123.0057803

Equity Dividend (%) 370 100 1,000.00 270.2702703

Book Value (Rs) 36.24 100 36.69 101.2417219

COMMON-SIZE OF BALANCE SHEET :-

Mar '06 Mar '09 Mar '10

%CHANGE IN 09 %CHANGE 10

source Of Funds

Total Share Capital   377.44 381.82 2.712930625 2.694168609Equity Share Capital   377.44 381.82 2.712930625 2.694168609Share Application Money   0 0 0 0Preference Share Capital   0 0 0 0Reserves   13,302.55 13,628.17 95.61491968 96.16203397Revaluation Reserves   55.09 54.39 0.395971143 0.383782491Networth   13,735.08 14,064.38 98.72382145 99.23998507Secured Loans   11.63 0 0.083593109 0Unsecured Loans   165.92 107.71 1.192585442 0.760014931Total Debt   177.55 107.71 1.276178551 0.760014931Total Liabilities   13,912.63 14,172.09 100 100Application Of Funds

Gross Block   10,558.65 11,967.86 75.89255231 84.44668359Less: Accum. Depreciation   3,286.74 3,825.46 23.62414583 26.99291354Net Block   7,271.91 8,142.40 52.26840648 57.45377005Capital Work in Progress   1,214.06 1,008.99 8.726315585 7.119556819Investments   2,837.75 5,726.87 20.3969343 40.409495Inventories   4,599.72 4,549.07 33.06147005 32.09879418Sundry Debtors   668.67 858.8 4.80620846 6.059797814Cash and Bank Balance   68.73 120.16 0.494011556 0.847863653Total Current Assets   5,337.12 5,528.03 38.36169006 39.00645565Loans and Advances   2,150.21 1,929.16 15.45509368 13.61238886Fixed Deposits   963.66 1,006.12 6.926512097 7.099305748Total CA, Loans & Advances   8,450.99 8,463.31 60.74329584 59.71815025Deffered Credit   0 0 0 0Current Liabilities   4,121.59 4,619.54 29.62480854 32.59603912Provisions   1,740.49 4,549.94 12.51014366 32.10493301Total CL & Provisions   5,862.08 9,169.48 42.1349522 64.70097212Net Current Assets   2,588.91 -706.17 18.60834364 -4.98282187Miscellaneous Expenses   0 0 0 0Total Assets   13,912.63 14,172.09 100 100

COMMON SIZE OF INCOME STATEMENT :=

Profit & Loss account of ITC

Mar '09 Mar '10 %CHANGE 09 %CHANGE 10

Income Sales Turnover 23,247.84 26,399.63 712.3394789 650.0770746 Excise Duty 8,262.03 7,832.18 253.157719 192.8633342 Net Sales 14,985.81 18,567.45 459.18176 457.2137405 Other Income 426.21 545.05 13.05954486 13.42157104 Stock Adjustments 630.3 -447.54 19.31308773 -11.02043832 Total Income 16,042.32 18,664.96 491.5543926 459.6148732 Expenditure Raw Materials 6,864.96 7,140.69 210.349952 175.8357547 Power & Fuel Cost 394.12 387.34 12.07627184 3.242935238 Employee Cost 903.37 1,014.87 27.68025395 24.9906427 Other Manufacturing Expenses 402.88 413.79 12.34468791 10.18936223 Selling and Admin Expenses 1,684.41 2,093.87 51.61218168 51.56045309

Miscellaneous Expenses 516.9 1,008.91 15.83838656 24.84388082 Preoperative Exp Capitalised -72.55 -71.88 -2.223012082 -1.770007387 Total Expenses 10,694.09 11,987.59 327.6787219 295.188131 Mar '09 Mar '10 Operating Profit 4,922.02 6,132.32 150.8161258 I24/I34*100

PBDIT 5,348.23 6,677.37 163.8756707 164.4267422 Interest 47.65 90.28 1.460048597 2.223097759 PBDT 5,300.58 6,587.09 162.4156221 162.2036444 Depreciation 549.41 608.71 16.83452885 14.98916523 Other Written Off 0 0 0 0 Profit Before Tax 4,751.17 5,978.38 145.5810932 147.2144792 Extra-ordinary items 81.52 48.65 2.497862783 1.197980793 PBT (Post Extra-ord Items) 4,832.69 6,027.03 148.078956 148.41246 Tax 1,565.13 1,965.43 4603.323529 48.3976853 Reported Net Profit 3,263.59 4,061.00 100 100 Total Value Addition 3,829.13 4,846.90 117.3287699 119.3523763 Preference Dividend 0 0 0 0 Equity Dividend 1,396.53 3,818.18 42.79122071 94.02068456 Corporate Dividend Tax 237.34 634.15 7.272359579 15.61561192 Per share data (annualised) Shares in issue (lakhs) 37,744.00 38,181.77 1156.517822 940.2061069

INTERPRETATION :-

Ratio analysis:-

Liquidity ratio:-

Current ratio = current assets Current liabilities

Quick ratio = quick assets Current liabilities

Absolute liquid ratio =absolute liquid assets Current liabilities

Profitability ratio:-

Gross profit ratio = gross profit*100 Net sale

Net profit ratio= net profit*100 Net sale

Operating ratio= operating cost *100 Net sale

Return on investment =net profit *100 Share holders

Return of equity=net profit –preference on dividend *100 Equity shareholders

Earnings per share= net profit –preference dividend No. of equity share outstanding

Turnover /activity/efficiency ratio:-

Inventory turnover ratio=cost of goods sold Average stock ITR =sale /average stock

Inventory conversion periods = 365 Inventory turnover ratio

Debtor’s turnover ratio = net credit annual sale average debtors

Avg collection period = 365 Debtor’s turnover ratio

Creditors turnover ratio =net credit purchase avg cr.

Average credit =opening credit +closing stock/2

Average payment period =365/credit turnover ratio

Solvency ratio

Debt on equity ratio =debt/equity

Coverage ratio

Interest coverage =ratio ebit/interest charge

RATIO ANALYSIS AND INTERPRATION :-

Liquidity ratio:-

a).Current ratio =current assets /current liabilities

Current assets =4605.57Current liabilities=2630.36Current ratio=4605.57/2630.36 =1.75 : 1

Interpretation: - The ideal ratio is 2:1 but our company has 1.75: 1, it means that our company’s liquidity position is not satisfactorily. it doesn’t meet it short term obligations.

b).Quick ratio =quick assets /current liabilities

Quick asset= current asset- inventories

Quick assets =4605.57-841.9 = 3763.67Current liabilities=2630.36Quick ratio=3763.67/2630.36 =1.43 : 1

Interpretation: the ideal quick ratio is 1:1. But our company has 1.43:1, so it means that the quick assets are more as compared to current liabilities which means that our company is in a position to meet its current liability.

c).Absolute liquid ratio =absolute liquid assets/current liabilities

C.)Absolute liquid assets=cash+ investment (short term)

Absolute liquid assets =14.63+895.93 =910.56Current liabilities=2630.36Absolute liquid ratio = 910.56/2630.36 =0.20: 1

Interpretation: - t he ideal ratio is 0.5 :1 but our company’s ratio is 0.20 :1 that means company’s absolute liquid assets are less as compared to current liabilities means that its cash and bank reserve are less.

Profitability ratio :

Gross profit ratio=gross profit*100/net sales

Gross profi=5221.35- (813+1313.71) =3094.64

And net sales= Total sales-Excise duty

= 5647.27-425.92 =5221.35

Gross profit ratio= 1272.27/5221.35*100

=24.37 %

Interpretation: - it means that gross profit is better . our expenses are less as compared to our revenue . our company earns good amount of profit.

b).Net profit ratio= net profit*100/net sale

Net profit =1272.27

Net sale =5221.35

Net profit ratio=1272.27*100/5221.35

=24.27%

Interpretation :- It means that net profit is better , which means are expenses

are less as compared to our revenue . our company earns good amount of profit

which lead to expansion of a company.

c).Operating ratio= operating cost *100/net sale

Cost of goods sold=raw material+ power and fuel

=813+1313.71

=2126.71

Operating cost=cost of goods sold+ selling and admin expenses + miscellaneous expenses

=2126.71+166.07+89.96

= 2382.74

Operating ratio = 2382.74*100/5221.35

= 45.63%

Interpretation :- our operating ratio is not satisfies it has more cost as compared to net sales which means that company is not stable.

d).Return on investment =net profit *100/share holders

Share holder fund = reserve + equity share

= 9125.50+644.31

= 9769.81

Return on investment = 1272.72*100/9769.81

=13.03%

Interpretation: - it means that company has good returns on the amount which was invested by share holders so the company’s shareholders are satisfied.

e).Return of equity=net profit –preference on dividend *100/equity shareholders

=1272.72*100/644.31

=197.46%

Interpretation: - It means that our company has a good returns on equity shares which shows that our shareholders are satisfied. They get enough amount of dividend.

Turnover /activity/efficiency ratio:-

a).Inventory turnover ratio=cost of goods sold /average stock

Cost of goods sold=raw material+ power and fuel

=813+1313.71

=2126.71

Average stock= 841.9 (Inventories)

Inventory turnover ratio=2126.71/841.9= 5.05 times

Interpretation: - The company has a good inventory rotating in an accounting year for the sale .

b).Inventory conversion periods = 365/Inventory turnover ratio

=365/5.05

=72.28 days

c).Debtor’s turnover ratio =net credit annual sale /average debtors

Net credit annual sale=5221.35

Average debtors=26.5

Debtor’s turnover ratio=5221.35/26.5

=197.03 times

Interpretation: - It means that our company has a good debtor turnover ratio which means that our company collected debt promptly from the debtors.

d).Average collection period =365/debtors turnover ratio

=365/197.03

=1.85 days

Solvency ratio

a).Debt on equity ratio =debt/equity

Debt = both long term and short term

= 2630.36

Equity= 644.31

Debt on equity ratio =2630.36/644.31

=4.08 times

Interpretation: - it means that a company collecting funds from the source of debt instead of issuing shares .so, they are at the safest mode . the company’s control are not diverted.

Coverage ratio

a).Interest coverage ratio= Ebit/interest charge

=2282.45/88.57= 25.77 times

Interpretation: - it means that company pay their interest timely they are covered their interest of creditors .