project on itc
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A
ASSIGNMENT ON FINANCEICAL ANALYSIS
OF
Submitted to: Submitted by:
Pooja Malhotra(HOD) Sandeep Thakur & Narendra Kajal
GIMT KURUKSHETRA M.B.A. 1st YEAR
DEPARTMENT OF BUSINESS MANAGEMENT
GEETA INSTITUTE OF MANAGEMENT AND TECHNOLOGY, KANIPLA, KURUKSHETRA
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Table of Content
Sl. No Particulars Page No.
1. History and Evolution………………………………2
2. Diagram……………………………………………..3
3. Introduction of company……………………………3
4. Company Infrastructure………..……………………4
5. Production process…...…………………………5 to 8 6. Silo Bag …………………………………………….9
7. How does help this information in Marketing………9
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Introduction
ITC started its journey long back in 1910 under the name of „Imperial Tobacco
Company of India Limited‟. During the first few decades of its operation the focus
of the company revolved around Cigarettes and Leaf Tobacco businesses. But during
the seventies the company ventured into different businesses including hotels and
paperboards. During the nineties the company started Agri Business Division and
the new millennium saw ITC venturing into Greetings Card, Lifestyle Retailing,Information Technology, Packaged Food, Matches, Agarbattis (incense sticks) and
many more. In the last few years ITC expanded its portfolio to include snacks and
personal care products as well. So, over the years the company has become a truly
diversified business house with interests spanning across industries. We included
ITC in this document as being a FMCG leader but our basic objective is to study the
marketing and advertising in Indian context – so along with FMCG, we will analyse
the other business in which ITC has key presence. The ITC financial statementsdivide its business into four main categories which are shown in below diagram:
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Though ITC has interests in so many diverse businesses – cigarettes has been the main money
earner for the company till date. In 2008 Cigarettes alone contributed more than 85% of company‟s profit after tax.
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Fact File Founded 24 August 1910 Mission “To enhance the wealth generating capability of the enterprise
in a globalising environment, delivering superior and sustainable stakeholder value.” Positioning
statement “Enduring Value. For the nation. For the Shareholder.” Gross Turnover (2007-08) Rs. 2
1356 Crore Profit After Tax (2007-08) Rs. 3120 Crore Number of Employees
25,000+ Logo Tag Line „ITC. Touching your life. Evevryday.‟ Chairman Y C Deveshwar
Headquarters Kolkata, India Website www.itcportal.com
Founded 24 August 1910
Mission “To enhance the wealth generating capability of the enterprise in a globalising
environment, delivering superior and sustainable stakeholder value.”
Positioning statement “Enduring Value. For the nation. For the Shareholder.”
Gross Turnover (2007-
08)
Rs. 21356 Crore
Profit After Tax (2007-
08)
Rs. 3120 Crore
Number of Employees 25,000+
Logo
Tag Line ‘ITC. Touching your life. Evevryday.’
Chairman Y C Deveshwar
Headquarters Kolkata, India
Website www.itcportal.com
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Brands
Following diagram shows the some key brands of ITC across segments:
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Standalone Balance Sheet of ITC
Balance Sheet ------------------- in Rs. Cr. -------------------
Mar '11 Mar '10 Mar '09 Mar '08
12 mths 12 mths 12 mths 12 mths
Sources Of Funds
Total Share Capital 773.81 381.82 377.44 376.86
Equity Share Capital 773.81 381.82 377.44 376.86Share Application Money 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00
Reserves 15,126.2 13,628.17 13,302.55 11,624.69Revaluation Reserves 53.34 54.39 55.09 56.12
Networth 15,953.7 14,064.38 13,735.08 12,057.67
Secured Loans 1.94 0.00 11.63 5.57Unsecured Loans 97.26 107.71 165.92 208.86
Total Debt 99.20 107.71 177.55 214.43
Total Liabilities 16,052.7 14,172.09 13,912.63 12,272.10
Mar '11 Mar '10 Mar '09 Mar '08
12 mths 12 mths 12 mths 12 mths
Application Of Funds
Gross Block 12,765.2 11,967.86 10,558.65 8,959.70
Less: Accum. Depreciation 4,420.75 3,825.46 3,286.74 2,790.87Net Block 8,345.07 8,142.40 7,271.91 6,168.83
Capital Work in Progress 1,333.40 1,008.99 1,214.06 1,126.82
Investments 5,554.66 5,726.87 2,837.75 2,934.55
Inventories 5,267.53 4,549.07 4,599.72 4,050.52Sundry Debtors 907.62 858.80 668.67 736.93
Cash and Bank Balance 98.77 120.16 68.73 153.34
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Total Current Assets 6,273.92 5,528.03 5,337.12 4,940.79Loans and Advances 2,173.89 1,929.16 2,150.21 1,949.29
Fixed Deposits 2,144.47 1,006.12 963.66 416.91
Total CA, Loans & Advances 10,592.8 8,463.31 8,450.99 7,306.99Deffered Credit 0.00 0.00 0.00 0.00
Current Liabilities 5,668.10 4,619.54 4,121.59 3,619.76
Provisions 4,104.84 4,549.94 1,740.49 1,645.33
Total CL & Provisions 9,772.94 9,169.48 5,862.08 5,265.09
Net Current Assets 819.34 -706.17 2,588.91 2,041.90
Miscellaneous Expenses 0.00 0.00 0.00 0.00
Total Assets 16,052.7 14,172.09 13,912.63 12,272.10
Contingent Liabilities 251.78 258.73 261.36 308.08
Book Value (Rs) 20.55 36.69 36.24 31.85
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Consolidated Balance Sheet of ITC
Balance Sheet of ------------------- in Rs. Cr. -------------------
Mar '11 Mar '10 Mar '09 Mar '08
12 mths 12 mths 12 mths 12 mths
Sources Of FundsTotal Share Capital 773.81 381.82 377.44 376.86
Equity Share Capital 777 377.44 376.86Share Application Money 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00
Init. Contribution Settler 0.00 0.00 0.00 0.00Preference Share Application Money 0.00 0.00 0.00 0.00
Employee Stock Opiton 0.00 0.00 0.00 0.00
Reserves 15,567.4 13,999.37 13,569.61 11,822.52Revaluation Reserves 102.51 59.22 60.00 61.13
Networth 16,443.6 14,440.41 14,007.05 12,260.51
Secured Loans 25.09 0.95 18.85 14.99
Unsecured Loans 99.48 109.82 167.81 209.92Total Debt 124.57 110.77 186.66 224.91
Minority Interest 140.82 126.38 129.96 113.21
Policy Holders Funds 0.00 0.00 0.00 0.00Group Share in Joint Venture 31.82 27.70 35.52 38.59
Total Liabilities 16,567.3 14,551.18 14,193.71 12,485.42
Mar '11 Mar '10 Mar '09 Mar '08
12 mths 12 mths 12 mths 12 mths
Application Of FundsGross Block 13,929.21 12,974.91 11,513.40 9,784.05Less: Accum. Depreciation 4,843.95 4,218.72 3,667.97 3,156.73
Net Block 9,085.26 8,756.19 7,845.43 6,627.32
Capital Work in Progress 1,367.95 1,023.58 1,243.12 1,573.67
Investments 4,867.84 4,996.51 2,507.07 2,585.07
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Inventories 5,720.00 5,079.98 4,782.58 4,263.00
Sundry Debtors 1,099.75 1,007.44 798.18 869.46Cash and Bank Balance 197.38 265.48 288.31 254.54
Total Current Assets 7,017.13 6,352.90 5,869.07 5,387.00
Loans and Advances 1,702.64 1,548.07 1,591.35 1,284.80Fixed Deposits 2,227.65 1,082.03 1,028.79 521.16Total CA, Loans & Advances 10,947.42 8,983.00 8,489.21 7,192.96
Deffered Credit 0.00 0.00 0.00 0.00
Current Liabilities 5,458.17 4,508.18 4,061.18 3,801.23Provisions 4,156.65 4,586.48 1,724.92 1,620.98
Total CL & Provisions 9,614.82 9,094.66 5,786.10 5,422.21
Net Current Assets 1,332.60 -111.66 2,703.11 1,770.75
Minority Interest 0.00 0.00 0.00 0.00Group Share in Joint Venture 86.81 40.43 60.14 79.99
Miscellaneous Expenses 0.11 0.21 0.32 0.42
Total Assets 16,653.76 14,664.83 14,299.05 12,557.23Contingent Liabilities 340.87 315.14 317.24 476.32
Book Value (Rs) 21.12 37.67 36.95 32.37
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Standalone
Cash Flow of ITC ------------------- in Rs. Cr. ----------------Mar '11 Mar '10 Mar '09 Mar '0
12 mths 12 mths 12 mths 12 mth
Net Profit Before Tax 7268.16 6015.31 4825.74 4571.7Net Cash From Operating Activities 5264.24 4630.65 3279.03 2722.9
Net Cash (used in)/from
Investing Activities-616.22 -3531.56 -1260.74 -1736.
Net Cash (used in)/from Financing Activities -3551.64 -1009.86 -1556.15 -1316.
Net (decrease)/increase In Cash and CashEquivalents 1096.38 89.23 462.14 -329.9
Opening Cash & Cash Equivalents 1082.93 993.70 570.25 900.1Closing Cash & Cash Equivalents 2179.31 1082.93 1032.39 570.2
Consolidated
Consolidated Cash Flow of ITC ------------------- in Rs. Cr. ----------------Mar '11 Mar '10 Mar '09 Mar '0
12 mths 12 mths 12 mths 12 mthNet Profit Before Tax 7434.87 6245.71 4984.76 4675.1
Net Cash From Operating Activities 5453.57 4443.04 3533.50 3006.6
Net Cash (used in)/from
Investing Activities-816.17 -3346.35 -1405.64 -1968.1
Net Cash (used in)/from Financing Activities -3579.74 -1070.13 -1592.96 -1349.2
Net (decrease)/increase In Cash and Cash
Equivalents1057.66 26.56 534.90 -310.6
Opening Cash & Cash Equivalents 1305.00 1278.44 783.41 1087.4Closing Cash & Cash Equivalents 2362.66 1305.00 1318.31 776.8
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Key Financial Ratios of ITCMar'11 Mar '10 Mar '09 Mar '08
Investment Valuation Ratios
Face Value 1.00 1.00 1.00 1.00
Dividend Per Share 4.45 10.00 3.70 3.50Operating Profit Per Share (Rs) 9.30 16.06 13.04 11.76
Net Operating Profit Per Share (Rs) 27.29 48.63 39.70 37.23
Profitability Ratios
Operating Profit Margin(%) 34.08 33.02 32.84 31.57Profit Before Interest And Tax Margin(%) 30.05 28.97 28.37 27.50
Gross Profit Margin(%) 30.97 29.74 29.17 28.44
Cash Profit Margin(%) 25.17 23.98 24.22 23.45Net Profit Margin(%) 22.91 21.30 21.18 21.50
Liquidity And Solvency Ratios
Current Ratio 1.08Quick Ratio 0.50
Debt Equity Ratio 0.01
Long Term Debt Equity Ratio 0.01
Debt Coverage Ratios
Interest Cover 123.30
Total Debt to Owners Fund 0.01
Financial Charges Coverage Ratio 100.46
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Management Efficiency Ratios
Inventory Turnover Ratio 6.05
Debtors Turnover Ratio 23.91Investments Turnover Ratio 6.05
Fixed Assets Turnover Ratio 1.69
Total Assets Turnover Ratio 1.34
Asset Turnover Ratio 1.69
Number of Days In Working Capital 13.97
Profit & Loss Account Ratios
Mar '1Earnings Per Share 6.45
Book Value 20.55
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Company Facts – ITC Registrars
Registered Address
Virginia House,
37, Jawaharlal Nehru Road,
KolkataWest Bengal
700071
Tel: 033-22889371 033-22886426
Fax: 033-22882358
Email: [email protected]
Website: http://www.itcportal.com
Group: MNC Associate
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Management - ITC
Name Designation
Yogesh Chander Deveshwar Chairman / Chair Person
Pradeep Vasant Dhobale Executive Director
Anil Baijal Non Executive DirectorAngara Venkata Girija Kumar Non Executive Director
Sunil Behari Mathur Non Executive Director
Hugo Geoffrey Powell Non Executive Director
Anthony Ruys Non Executive Director
Krishnamoorthy Vaidyanath Non Executive Director
Name Designation
Nakul Anand Executive Director
Kurush Noshir Grant Executive Director
Shilabhadra Banerjee Non Executive Director
Serajul Haq Khan Non Executive Director
Dinesh Kumar Mehrotra Non Executive DirectorPillappakkam Bahukutumbi Ramanujam Non Executive Director
Basudeb Sen Non Executive Director
Balakrishnan Vijayaraghavan Non Executive Director