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TRANSCRIPT
Financial Analysis Of ITC Mega Project Report,
As a part of partial fulfillment of requirement of MBA degree. Submitted By
Amit Shukla (140701004)Priya Rani (140702048)Rakesh Pande (140702028)Rao Shakir (140701051)
Under The Supervision OfMr. Arun Kant Painoli (B.E)Mr. Commander R.N. Sharma (M.E)Mr. Pradeep Joshi (P.P.M)Dr. Y.P. Singh (F.A)
Submitted At
Date. 28th November 2014Place. Quantum School Of Business
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ITC At a Glance
Industry: Conglomerate; Public
Founded: On August 24,1910
CEO: Yogesh Chander Deveshwar
Headquartered: Kolkata;West Bengal
Employees: 25,959 app.
Diversification: FMCG,Hotels,Paperboard and Packaging,Agri
Business & IT
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History Of ITC
24 AUG1910 – ITC incorporated under the name of ‘Imperial Tobacco Company of India Limited’.
1925 – Started Packaging and Printing business beside cigarette manufacturing
1975 - started HOTEL BUSINESS as ‘ITC- Welcome Group Hotel Chola’
1979 – started Paperboard business 2000-10 – started manufacturing Greeting, Gifting and
Stationary Products
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Logo Of ITC
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ITC
ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. ITC Limited is an Indian FMCG company headquartered in Kolkata, West Bengal. Its diversified business include 6 segment:-
FMCG Hotels Paperboards Packaging Agriculture Business Information Technology
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Vision & Mission
Sustain ITC’s position as one of India’s most valuable co-operation through world class performance, creating growing values for the Indian economy and the companies stakeholders
To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior & sustainable stakeholder value
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Objective
Building awareness and improving the availability and use of
trade intelligence
Enhancing policies for the benefit of exporting enterprises
Building the export capacity of enterprises to respond to
market opportunities
Mainstream inclusiveness and sustainability into trade
promotion and export development
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SWOT Analysis
STRENGTH:
Cigarette market is 22,000 croreStrong brand recognition and product portfolioDistribution network ManagementWEAKNESS
Dependence on tobacco revenuesNegative connection of Tobacco
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Cont...
OPPORTUNITY: Consumption of personal care products Rural Market E-ChaupalTHREATS: Competition both Domestic and International Increasing Tax on Cigarette Excise Duty on Unfiltered Cigarettes lass than 60mm in length was
increased 387% last year Hike was 142% for those between 61mm and 71mm long Regulatory restrictions on cigarettes Ban on smoking
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FMCG Companies in India Hindustan Uniliver ITC Amul Godrej Consumer Products limited Dabur India Lit. Emami Colgate Palmolive India Limited Zydus Wellness Britannia Wipro Cavinkare Parle Agro Nirma 10
Cigarette as Starters
Insignia India Kings Classic Gold Flake Silk Cut Navy Cut Scissors Capstan Berkeley Bristol Flake
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ITC Hotels ITC Grand Chola, Chennai
ITC Grand Bharat, Gurgaon
ITC Maurya, New Delhi
ITC Maratha, Mumbai
ITC Gardenia, Bengaluru
ITC Windsor, Bengaluru
ITC Grand Central, Mumbai
ITC Sonar, Kolkata
ITC Kakatiya, Hyderabad
ITC Rajputana, Jaipur
ITC Mughal, Agra12
Organization Structure
Board of Directors : Strategic supervision
Corporate Management Committee : Strategic Management
Divisional Management Committees : Executive Management
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Some other products of ITC
Classmate
Ashirvad
Tobacco products
Vivel, Fiama di wils, Superia
Wills lifestyle and John Players
Mangaldeep agarbatti and Aim safety matches
Candyman and Dark Fantasy
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Social Initiative
Generates livelihood for 5 million people ITC’s E-choupal benefits over 4 million farmers ITC’s Farm and Forestry initiative have greened over 125,000
hectares of barren land creating 56 million person days of employment
ITC’s Watershed Development programme brings water to over 90,000 hectares of land which are dry and water stressed area
Imparting education to Farmers,Women,Children and other backward Un-Educated class
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Interesting Facts
WOW (Wealth Out of Waste Campaign)
Carbon Positive for nine years in a row
Water Positive for twelve consecutive years
Solid Waste recycling for last seven years
FSC-CoC (Forest Stewardship Council-Chain of Custody)
Certified
ITC Railway Catering Contract with Indian Railway
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Role of ITC in India
Improve the standard of living Creation of Employment Contribution in the revenue Produce good quality products Deals in various products that are useful in the development of
the society Contribution to the general welfare of society Development of human resources Reduce disparities among nation
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Balance SheetParticulars Mar 14
12 mthsMar 1312 mths
Mar 1212 mths
Sources of funds
Total Share Capital 790.18 781.84 773.81Reserves 21,497.67 17,957.00 15,126.12Networth 22,287.85 18,791.89 15,953.27Total Debt 66.40 79.09 99.20
Total Liabilities 22,354.25 18,870.98 16,052.47Application Of Funds
Net Block 11,209.34 9,106.68 8,345.07Capital Work in Progress 1,487.79 2,572.06 1,333.40
Total CA, Loans & Advances
14,260.01 11,395.32 10,592.28
Total CL & Provisions 11,663.18 10,519.67 9,772.94Net Current Assets 2,596.83 875.65 819.34
Total Assets 22,354.25 18,870.98 16,052.47
In crores 18
Particular Mar-14 Mar-13 Mar-12Sales 33238.6 29901.27 35247.25Other Income 1107.14 938.7 761.25raw material 13522.04 12531.44 9933.19power & fuel 613.19 550.11 453.19employee.cost 1608.37 1387.01 1265.41Gross Profit 12326.43 22018.11 40947.76miscelleneous expenses 5168.57 5741.03 1339.6operating profit 5349.85 2078.26 2474.29Ebdit 13561.98 11566.21 9683.06dep 899.92 795.56 698.51Ebit 12659.11 10684.18 8897.53interest 2.95 86.07 87.02Ebt 12659.11 10684.18 8900.04tax 3873.9 3265.79 2737.08Net Profit 8785.21 7418.39 6162.37
Income Statement
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Particulars Mar-14 Mar-13 Mar-12Liquidity ratiosCurrent Ratio 1.25 1.22 1.08Quick Ratio 0.68 0.66 0.51Cash Ratio 1.36 1.12 1.45Profitability RatiosGross Profit Margin 34.76% 32.88% 32.77%Operating Profit Margin 37.47% 35.54% 35.55%Return On Net Worth 33.45% 33.28% 32.88%Return On Capital Employed 48.12% 48.18% 46.95%Return On Total Asset 33.02% 28.21% 24.04%Turnover RatiosFixed Asset Turnover Ratios 1.83 1.8 1.81Current Asset Turnover Ratios 1.37 1.45 1.44Total Asset Turnover Ratios 1.27 1.34 1.34 Stock Turnover Ratios 4.52 4.53 6.53Working Capital Ratios 37.96 98.54 25.4
Ratios
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Analysis of Income Statement
12 mths 12 mths 12 mths Mar-14 Mar-13 Mar-12
0
20
40
60
80
100
120
Total Income Total Expenses Reported Net Profit %
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ITC VS HUL
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Conclusion
ITC promoting their brands through advertisement campaign as well as door to door promotion.
ITC is also focusing on retailers and wholesalers to promote
their brand. The demand for their product is very low,because people don’t
know about their brands very well. ITC knows their weakness in personal care market,so they are
applying new concept to overcome their weakness. ITC now offering more margin,exiting offers and long credit
period to retailers and wholesalers.
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Bibliography
The content have been taken through : www.moneycontrol.Com Principles of Accounting Book
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