Project on ITC

8/2/2019 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



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



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:

http://www.blogger.com/post-edit.do





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.



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



http://www.itcportal.com/




http://4.bp.blogspot.com/_HaPYpxH4XaI/SqUYyemb75I/AAAAAAAAAU4/IuVEANrH9QI/s1600-h/ITC_Logo.JPG









Brands

Following diagram shows the some key brands of ITC across segments:






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


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



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



Consolidated Balance Sheet of ITC

Balance Sheet of ------------------- in Rs. Cr. -------------------

Mar '11 Mar '10 Mar '09 Mar '08


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


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



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



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



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



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



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

mailto:[email protected]










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

Documents

Project on ITC