A Project On "Financial Statement Analysis of ": Procter and Gamble

A
Project on
“Financial Statement Analysis of Procter and Gamble”
IMBA Program: Semester – I

Batch: 2019 – 24
Prepared by
1. (IM19083) (Khush Jain)

2. (IM19120) (Khushi Lokapur)
3. (IM19140) (Vaishnavi Mehta)
4. (IM19162) (Jainish Patadia)
5. (IM19233) (Priyal Savani)
6. (IM19321) (Bhavesh Tanwani)
Guided by
Prof. Ashok Bantwa
Submitted to
GLS University – Faculty of Management
ACKNOWLEDGEMENT
A project usually falls short of its expectations unless guided by the right person at
the right time. This project would not have been completed without the direct
and indirect help and guidance of such people.
First, we would like to show our sincere gratitude to GLS University, Faculty of
Management for providing us with this unique experiential learning opportunity,
that really helped us in improving our analytical skills and understanding of
financial statements. We would like to thank Dr. Hiyesh Ruparel (Director, GLS
University, School of Management) and Dr. Kavita Kshatriya (HOD IMBA Program)
for their kind support. We would also like to thank Prof. Ashok Bantwa for his
valuable guidance for this project.

TABLE OF CONTENTS
ACKNOWLEDGEMENT 2
TABLE OF CONTENTS 3
COMPANY OVERVIEW 4
Origins 4
International expansion 5
Further developments 6
Restructuring 7
Brands 9
BOARD OF DIRECTORS 11
FINANCIAL HIGHLIGHTS 15
DIVIDEND HISTORY 17
HORIZONTAL ANALYSIS 18
VERTICAL ANALYSIS 31
RATIO ANALYSIS 43
COMPANY OVERVIEW
The Procter & Gamble Company (P&G) is an American multinational consumer goods corporation
headquartered in downtown Cincinnati, Ohio, founded in 1837 by English American William Procter and Irish
American James Gamble. It specializes in a wide range of personal health/consumer health, and personal care
and hygiene products; these products are organized into several segments including Beauty; Grooming; Health
Care; Fabric & Home Care; and Baby, Feminine, & Family Care. Before the sale of Pringles to Kellogg’s, its
product portfolio also included food, snacks, and beverages. P&G is incorporated in Ohio.
In 2014, P&G recorded $83.1 billion in sales. On August 1, 2014, P&G announced it was streamlining the
company, dropping and selling off around 100 brands from its product portfolio in order to focus on the
remaining 65 brands, which produced 95% of the company's profits. A.G. Lafley—the company's chairman,
president, and CEO until October 31, 2015—said the future P&G would be "a much simpler, much less
complex company of leading brands that's easier to manage and operate".
David Taylor is the current president and CEO of Procter & Gamble.
Origins
Candlemaker William Procter, born in England, and soapmaker James Gamble, born in Ireland, both emigrated
from the United Kingdom. They settled in Cincinnati initially and met when they married sisters Olivia and
Elizabeth Norris. Alexander Norris, their father-in-law, persuaded them to become business partners, and in
1837 Procter & Gamble was created.
In 1858–1859, sales reached $1 million. By that point, about 80 employees worked for Procter & Gamble.
During the American Civil War, the company won contracts to supply the Union Army with soap and candles.
In addition to the increased profits experienced during the war, the military contracts introduced soldiers from
all over the country to Procter & Gamble's products.
In the 1880s, Procter & Gamble began to market a new product, an inexpensive soap that floated in the water.
The company called soap Ivory. William Arnett Procter, William Procter's grandson, began a profit-sharing
program for the company's workforce in 1887. By giving the workers a stake in the company, he correctly
assumed that they would be less likely to go on strike.
The company began to build factories in other locations in the United States because the demand for products
had outgrown the capacity of the Cincinnati facilities. The company's leaders began to diversify its products, as
well, and in 1911, began producing Crisco, a shortening made of vegetable oils rather than animal fats. As radio
became more popular in the 1920s and 1930s, the company sponsored a number of radio programs.
International expansion
The company moved into other countries, both in terms of manufacturing and product sales, becoming an
international corporation with its 1930 acquisition of the Thomas Hedley Co., based in Newcastle upon Tyne,
England. After this acquisition, Procter & Gamble had their UK Headquarters at 'Hedley House' in Newcastle
upon Tyne, until quite recently. Numerous new products and brand names were introduced over time, and
Procter & Gamble began branching out into new areas. The company introduced Tide laundry detergent in 1946
and Prell shampoo in 1947. In 1955, Procter & Gamble began selling the first toothpaste to contain fluoride,
known as Crest. Branching out once again in 1957, the company purchased Charmin paper mills and began
manufacturing toilet paper and other tissue paper products. Once again focusing on laundry, Procter & Gamble
began making Downy fabric softener in 1960 and Bounce fabric softener sheets in 1972.
One of the most revolutionary products to come out on the market was the company's disposable Pampers
diapers, first test-marketed in 1961, the same year Procter & Gamble came out with Head & Shoulders.[10] Prior
to this point, disposable diapers were not popular, although Johnson & Johnson had developed a product called
Chux. Babies always wore cloth diapers, which were leaky and labor-intensive to wash. Pampers provided a
convenient alternative, albeit at the environmental cost of more waste requiring landfilling. Amid the recent
concerns parents have voiced on the ingredients in diapers, Pampers launched Pampers Pure collection in 2018,
which is a "natural" diaper alternative.
Further developments
Procter & Gamble acquired a number of other companies that diversified its product line and significantly
increased profits. These acquisitions included Folgers Coffee, Norwich Eaton Pharmaceuticals (the makers of
Pepto-Bismol), Richardson-Vicks, Noxell (Noxzema), Shulton's Old Spice, Max Factor, the Iams Company,
and Pantene, among others. In 1994, the company made headlines for big losses resulting from levered
positions in interest rate derivatives, and subsequently sued Bankers Trust for fraud; this placed their
management in the unusual position of testifying in court that they had entered into transactions that they were
not capable of understanding. In 1996, P&G again made headlines when the Food and Drug Administration
approved a new product developed by the company, Olestra. Also known by its brand name 'Olean', Olestra is a
lower-calorie substitute for fat in cooking potato chips and other snacks.
In January 2005, P&G announced the acquisition of Gillette, forming the largest consumer goods company and
placing Unilever in second place. This added brands such as Gillette razors, Duracell, Braun, and Oral-B to
their stable. The acquisition was approved by the European Union and the Federal Trade Commission, with
conditions to a spinoff of certain overlapping brands. P&G agreed to sell its SpinBrush battery-operated electric
toothbrush business to Church & Dwight, and Gillette's Rembrandt toothpaste line to Johnson & Johnson. The
deodorant brands Right Guard, Soft and Dri, and Dry Idea were sold to Dial Corporation. The companies
officially merged on October 1, 2005. Liquid Paper and Gillette's stationery division, Paper Mate, were sold to
Newell Rubbermaid. In 2008, P&G branched into the record business with its sponsorship of Tag Records, as
an endorsement for TAG Body Spray.P&G's dominance in many categories of consumer products makes it's
brand management decisions worthy of study. For example, P&G's corporate strategists must account for the
likelihood of one of their products cannibalizing the sales of another.
On August 25, 2009, the Ireland-based pharmaceutical company Warner Chilcott announced they had bought
P&G's prescription-drug business for $3.1 billion.
P&G exited the food business in 2012 when it sold its Pringles snack food business to Kellogg's for $2.75
billion after the $2.35 billion deal with former suitor Diamond Foods fell short. The company had previously
sold Jif peanut butter, Crisco shortening and oils, and Folgers coffee in separate transactions to Smucker's.
In April 2014, the company sold its Iams pet food business in all markets excluding Europe to Mars, Inc. for
$2.9 billion. It sold the European Iams business to Spectrum Brands in December 2014.
Restructuring
In August 2014, P&G announced it was streamlining the company, dropping around 100 brands and
concentrating on the remaining 65, which were producing 95% of the company's profits
In March 2015, the company announced it was selling its Vicks VapoSteam U.S. liquid inhalant business to
Helen of Troy, part of a brand-restructuring operation. This deal was the first health-related divestiture under
the brand-restructuring operation.
In July 2015, the company announced the sale of 43 of its beauty brands to Coty, a beauty-product
manufacturer, in a US$13 billion deal. It cited the sluggish growth of its beauty division as the reason for the
divestiture. The sale was completed on October 3, 2016.
In February 2016, P&G completed the transfer of Duracell to Berkshire Hathaway through an exchange of
shares.
In April 2018, Reuters reported that Procter & Gamble would purchase the consumer health division of Merck
Group (known as EMD Serono in North America) for €3.4 billion euros (£2.96 billion; $3.9 billion).
In November 2018, P&G unveiled a simpler corporate structure with six business units that will be effective
from July 2019.
Finances
For the fiscal year 2018, Procter & Gamble reported earnings of US$9.750 billion, with annual revenue of
US$66.832 billion, an increase of 2.7% over the previous fiscal cycle. Procter & Gamble's shares traded at over
$86 per share in 2017, and its market capitalization was valued at over US$221.5 billion in October 2018.
Procter & Gamble ranked No. 42 on the 2018 Fortune 500 list of the largest United States corporations by total
revenue.
Operations
As of July 1, 2016, the company structure has been categorized into ten categories and six selling and market
organizations.
➢ Categories
○ Baby Care
○ Fabric Care
○ Family Care
○ Feminine Care
○ Grooming
○ Hair Care
○ Home Care
○ Oral Care
○ Personal Health Care
○ Skin & Personal Care
➢ Selling & Market Organizations

○ Asia Pacific
○ Europe
○ Greater China
○ India, the Middle East, and Africa (IMEA)
○ Latin America
○ North America
Brands
As of 2015, 21 of P&G's brands have more than a billion dollars in net annual sales. Most of these brands—
including Bounty, Crest, and Tide—are global products available on several continents. P&G's products are
available in North America, Latin America, Europe, the Middle East, Africa, Asia, Australia, and New Zealand.
In 2018, P&G's fabric and home care division accounted for 32% of the company's total net sales, the highest of
all its divisions. The division includes Downy, Gain, Tide, Febreze, and Dawn.
BOARD OF DIRECTORS
Francis S. Blake
Former Chairman of the Board and Chief Executive Officer of
The Home Depot, Inc. (national retailer). Director since 2015.
Also non-Executive Chairman of the Board of Delta Airlines
and Director of Macy’s, Inc. Age 70.
Angela F. Braly
Former Chair of the Board, President, and Chief Executive
Officer of WellPoint, Inc. (healthcare insurance), now known
as Anthem. Director since 2009. Also a Director of Lowe’s
Companies, Inc., Brookfield Asset Management, and
ExxonMobil Corporation. Age 58.
Amy L. Chang
Senior Vice President and General Manager of the
Collaboration Technology Group at Cisco Systems, Inc.
(networking). Founder and former Chief Executive Officer
of Accompany, Inc. (relationship intelligence) from 2013 to
2018. Director since 2017. Former Director of Cisco Systems,
Inc., Splunk, Inc., and Informatica. Age 42.
Scott D. Cook
Chairman of the Executive Committee of the Board of Intuit
Inc. (software and web services). Director since 2000. Age 67.
Joseph Jimenez
Co-Founder and Managing Partner of Aditum Bio (biotech
venture fund that launched in July 2019). Former Chief
Executive Officer of Novartis AG (global healthcare), a
position he held from 2010 to 2018. Director since 2018.
Also a Director of General Motors. Age 59.
Terry J. Lundgren
Operating Partner of Long-Term Private Capital (a BlackRock
private equity fund). Former Executive Chairman and
Chairman of the Board of Macy’s, Inc. (national retailer),
a position he held from 2017 to 2018. Mr. Lundgren held
the title of Chairman and Chief Executive Officer of
Macy’s from 2003 to 2017. Director since 2013. Age 67.
W. James McNerney, Jr.

Senior Advisor at Clayton, Dubilier & Rice, LLC (private equity
investment). Former Chairman of the Board of The Boeing
Company (aerospace, commercial jetliners, and military
defense systems). President of The Boeing Company from
2005 to 2013, and Chief Executive Officer from 2005 to 2015.
Director since 2003. Age 70.
Nelson Peltz
Chief Executive Officer and Founding Partner of Trian
Fund Management, L.P. (investment management)
since its formation in 2005. Director since 2018. Also a
Director of The Madison Square Garden Company,
The Wendy’s Company, Sysco Corporation, and Legg
Mason, Inc. Age 77.
Margaret C. Whitman
Chief Executive Officer of Quibi (mobile media) since 2018.
Former President and Chief Executive Officer of Hewlett
Packard Enterprise (multinational information technology)
from 2015 to 2017. President and Chief Executive Officer of
the Hewlett-Packard Company from 2011 to 2015, as well as
Chairman of the Board from 2014 to 2015. Director since 2011.
Also a Director of Dropbox. Age 63.
Patricia A. Woertz
Former Chairman of the Board, President, and Chief Executive
Officer of Archer Daniels Midland Company. Director
since 2008. Also a Director of 3M Company. Age 66.
David S. Taylor
Chairman of the Board, President, and Chief Executive
Officer of the Company. Director since 2015. Age 61.
FINANCIAL HIGHLIGHTS
(unaudited)
Amounts in billions, except per share amounts
2019 2018 2017 2016 2015
Net sales $67.7 $66.8 $65.1 $65.3 $70.7
Operating $5.5 $13.4 $13.8 $13.3 $11.1

Income
Net earnings $3.9 $9.8 $15.3 $10.5 $7.0

attributable to
P&G
Net earnings 5.9% 14.8% 15.7% 15.4% 11.7%

margin from
Continuing
Operations
Diluted Net $1.43 $3.67 $3.69 $3.49 $2.84

Earnings per
Common Share
from
Continuing
Operations
Diluted Net $1.43 $3.67 $5.59 $3.69 $2.44

Earnings per
Common Share
Core Earnings $4.52 $4.22 $3.92 $3.67 $3.76

per Share
Operating cash $15.2 $14.9 $12.8 $15.4 $14.6

flow
Dividends per $2.90 $2.79 $2.70 $2.66 $2.59

Common Share
★ North america is having highest contribution in net sales which is 45% of net sales.
★ Europe is the second highest contributor in net sales which comprises 23% of total sales
★ Asia pacific contributes 23% total net sales
★ Greater China has contributed 9% in total sales as country which is a notable contribution
of market to a company in net sales
★ India and middle east countries have contributed 7% of net sales
★ Latin american have least contribution of just 6% of net sales
★ Fabric and home care sector has contributed highest net sales for company globally its
contribution in net sales is 33%
★ Baby and feminine care has contributed 27% of net sales
★ Beauty segment has contributed 19% of net sales
★ Healthcare’s contribution in net sales is 12%
★ Grooming segment has contributed 9% of net sales
DIVIDEND HISTORY
Dividends (NYSE - PG)
Description: Common Stock
Current Dividend Yield (%) : 2.4%
Ex-Dividend Record Date Announce Date Pay Date Amount Frequency

Date
7/18/2019 7/19/2019 7/9/2019 8/15/2019 0.7459 Quarterly
4/17/2019 4/19/2019 4/9/2019 5/15/2019 0.7459 Quarterly
1/17/2019 1/18/2019 1/8/2019 2/15/2019 0.7172 Quarterly
10/18/2018 10/19/2018 10/9/2018 11/15/2018 0.7172 Quarterly
7/19/2018 7/20/2018 7/10/2018 8/15/2018 0.7172 Quarterly
4/19/2018 4/20/2018 4/10/2018 5/15/2018 0.7172 Quarterly
1/18/2018 1/19/2018 1/9/2018 2/15/2018 0.6896 Quarterly
10/19/2017 10/20/2017 10/10/2017 11/15/2017 0.6896 Quarterly
7/19/2017 7/21/2017 7/11/2017 8/15/2017 0.6896 Quarterly
4/19/2017 4/21/2017 4/12/2017 5/15/2017 0.6896 Quarterly
1/18/2017 1/20/2017 1/10/2017 2/15/2017 0.6695 Quarterly

HORIZONTAL ANALYSIS
Comparative P&L
3/31/2018 3/31/2017
PARTICULARS Rs in crores Rs in crores Change In Amount Change in %
INCOME
Revenue From Operations [Gross] 818.19 1,088.57 -270.38 -33.05%
Less: Excise/Service Tax/Other Levies 0 15.4 -15.49 0.00%
Revenue From Operations [Net] 818.19 1,073.08 -254.89 -31.15%
Other Operating Revenues 30.8 30.88 -0.08 -0.26%
Total Operating Revenues 848.99 1,103.96 -254.97 -30.03%
Other Income 24.39 23.97 0.42 1.72%
Total Revenue 873.38 1,127.93 -254.55 -29.15%
EXPENSES
Cost Of Materials Consumed 245.52 236.56 8.96 3.65%
Purchase Of Stock-In Trade 27.31 202.24 -174.93 -640.53%
Changes In Inventories Of FG, WIP And
Stock-In Trade -3.47 2.29 -5.76 -165.99%
Employee Benefit Expenses 131.27 169.64 -38.37 -29.23%
Depreciation And Amortisation Expenses 20.35 43.63 -23.28 -114.40%
Other Expenses 300.98 338.38 -37.40 -12.43%
Total Expenses 721.96 992.74 -270.78 -37.51%
Profit/Loss Before Exceptional,

ExtraOrdinary Items And Tax 151.42 135.19 16.23 10.72%
Exceptional Items 6.56 17 -10.44 -159.15%
Profit/Loss Before Tax 157.98 152.19 5.79 3.67%
Tax Expenses-Continued Operations

Current Tax 54.96 63.5 -8.54 -15.54%
Deferred Tax 6.02 -10.24 16.26 270.10%
Tax For Earlier Years -4.74 5.02 -9.76 205.91%
Total Tax Expenses 56.24 58.28 -2.04 -3.63%
Profit/Loss After Tax And Before
ExtraOrdinary Items 101.74 93.91 7.83 7.70%
Profit/Loss From Continuing Operations 101.74 93.91 7.83 7.70%
Profit Loss From Discontinuing
Operations 979.59 0 979.59 100.00%
Total Tax Expenses Discontinuing
Operations 242.61 0 242.61 100.00%
Net Profit Loss From Discontinuing
Operations 736.98 0 736.98 100.00%
Profit/Loss For The Period 838.72 93.91 744.81 88.80%
OTHER ADDITIONAL
INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.) 505.3 56.6 448.70 88.80%
Diluted EPS (Rs.) 505.3 56.6 448.70 88.80%
VALUE OF IMPORTED AND
INDIGENIOUS RAW MATERIALS
Imported Raw Materials 0 0 0.00 -
Indigenous Raw Materials 0 0 0.00 -
STORES, SPARES AND LOOSE
TOOLS
Imported Stores And Spares 0 0 0.00 -
Indigenous Stores And Spares 0 0 0.00 -
DIVIDEND AND DIVIDEND
PERCENTAGE
Equity Share Dividend 24.9 18.26 6.64 26.67%
Tax On Dividend 5.15 3.72 1.43 27.77%
Equity Dividend Rate (%) 4,400.00 150 4,250.00 96.59%
Analysis for Comparative P&L
The gross revenue from operations in the year 2017 was Rs. 1088.57 Cr. and in the year 2018 was Rs. 818.19
Cr. The change in amount is -270.18 and change in percentage is -33.05%. Here, Gross Revenue has decreased.
The net revenue from operations in the year 2017 was Rs. 1073.08 Cr. and in the year 2018 was Rs. 818.19 Cr.
The change in amount is -254.89 and change in percentage is -31.15%. Here, the Net Revenue has decreased.
The total operating revenue in the year 2017 was Rs. 1103.96 Cr. and in the year 2018 was Rs. 848.99 Cr. The
change in amount is -254.89 and change in percentage is -31.15%. Here, theTotal operating revenue has
decreased.
The Other Income in the year 2017 was Rs. 23.97 Cr. and in the year 2018 was Rs. 24.39 Cr. The change in
amount is 0.42 and change in percentage is 1.72%. Here, the Other Income has increased.
The total revenue in the year 2017 was Rs. 1127.93 Cr. and in the year 2018 was Rs. 873.38 Cr. The change in
amount is -254.55 and change in percentage is -29.15%. Here, the Total revenue has decreased.
The Cost of materials consumed in the year 2017 was Rs. 236.56 Cr. and in the year 2018 was Rs. 245.52 Cr.
The change in amount is 8.96 and change in percentage is 3.65%. Here, the Cost of materials consumed has
increased.
The Changes in inventory of FG, WIP and Stock-in-trade in the year 2017 was Rs. 2.29 Cr. and in the year
2018 was Rs. -3.47 Cr. The change in amount is -5.76 and change in percentage is -165.99%. Here, the Changes
in inventory of FG, WIP and Stock-in-trade has decreased.
The Employee Benefit Expense in the year 2017 was Rs. 169.64 Cr. and in the year 2018 was Rs. 131.27 Cr.
The change in amount is -38.37 and change in percentage is -29.23%. Here, the Employee Benefit Expenses has
decreased.
The Depreciation and Amortisation Expense in the year 2017 was Rs. 43.63 Cr. and in the year 2018 was Rs.
20.35 Cr. The change in amount is -23.28 and change in percentage is -114.40%. Here, Depreciation and
Amortisation Expense has decreased.
The Other Expenses in the year 2017 was Rs. 338.38 Cr. and in the year 2018 was Rs. 300.98 Cr. The change
in amount is -37.40 and change in percentage is -12.43%. Here, Other Expenses have decreased.
The Total Expense in the year 2017 was Rs. 992.74 Cr. and in the year 2018 was Rs. 721.96 Cr. The change in
amount is -270.78 and change in percentage is -37.51%. Here, Total Expense has decreased.
The Profit/Loss Before Tax in the year 2017 was Rs. 152.19 Cr. and in the year 2018 was Rs. 157.98 Cr. The
change in amount is 5.79 and change in percentage is 3.67%. Here, Profit/Loss Before Tax has increased.
The Profit/Loss After Tax in the year 2017 was Rs. 93.91 Cr. and in the year 2018 was Rs. 101.74 Cr. The change
in amount is 7.83 and change in percentage is 7.7%. Here, Profit/Loss After Tax has increased.
The Total Tax Expense in the year 2017 was Rs. 58.28 Cr. and in the year 2018 was Rs. 56.24 Cr. The change in
amount is -2.04 and change in percentage is -3.63%. Here, Total Tax Expense has decreased.
The Profit/Loss for the period in the year 2017 was Rs. 93.91 Cr. and in the year 2018 was Rs. 838.72 Cr. The
change in amount is 744.81 and change in percentage is 88.80%. Here, Profit/Loss for the period has increased.
The Basic Earning per share in the year 2017 was Rs. 56.6 Cr. and in the year 2018 was Rs. 505.3 Cr. The change
in amount is 448.7 and change in percentage is 88.80%. Here, Basic earning per Share has increased.
Diluted Earning per share in the year 2017 was Rs. 56.6 Cr. and in the year 2018 was Rs. 505.3 Cr. The change in
amount is 448.7 and change in percentage is 88.80%. Here, Diluted earnings per Share has increased.
Equity Share Dividend in the year 2017 was Rs. 18.26 Cr. and in the year 2018 was Rs. 24.9 Cr. The change in
amount is 6.64 and change in percentage is 26.67%. Here, Equity Share Dividend has increased.
Tax on Dividend in the year 2017 was Rs. 3.72 Cr. and in the year 2018 was Rs. 5.15 Cr. The change in amount
is 1.43 and change in percentage is 27.77%. Here, Tax on Dividend has increased.
Equity Dividend Rate in the year 2017 was Rs. 150 Cr. and in the year 2018 was Rs. 4400 Cr. The change in
amount is 4250 and change in percentage is 96.59%. Here, Equity Dividend Rate has increased.
Interpretation for Comparative P&L
Total operating revenue is decreased. It shows that company’s management isn’t proficient. The resources of
such reduction in total operating revenue in decreased managerial efficiency in top and middle level
management efficiency.
Other revenues are heaving a minor increase which shows that though company is facing reduction in other
incomes generated of daily operation its earning sales and well with investing activities.
Total revenue is decreased which shows that decrease in operating revenue is having higher impact on total
income compared to other revenue as we can see total revenue majorly includes total operating revenues which
shows its inefficiency
COGS increment shows company’s productive capacity is increased even we can from that the company’s
situation/market share in market demand has increased.
On the other hand purchase of stock in trade is decreased so above statement contradictory it shows that
company has reduced its COGS by cutting other costs instead of production cost.
We can see that there is a significant reduction in employee benefit expenses, we can say that though company
has reduced cost by spending less on its human resource as they may have satisfied, happy and motivated
workforce which helped then to reduce its cost without losing efficiency.
So, finally looking at PBT, we can interpret that though company didn’t generate more revenue comparatively
but company is highly efficient in cost management which increased PBT.
At last after deducting tax and adding other profit we can observe the huge difference which is because of
costing of company.
EPS has also increased significantly which shows though company cares about consumer by cutting cost and
they also give a handsome return to its investors/owners.
Dividend rate has almost doubled which shows company doesn’t only shares profit but reserves also for
dividend.
Comparative Balance sheet
3/31/2018 3/31/2017
PARTICULARS Rs in crores Rs in crores Change In Amount Change in %
EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS
Equity Share Capital 16.6 16.6 0 0.00%
Total Share Capital 16.6 16.6 0 0.00%
Reserves and Surplus 1,523.51 716.66 806.85 52.96%
Total Reserves and Surplus 1,523.51 716.66 806.85 52.96%
Total Shareholders Funds 1,540.11 733.26 806.85 52.39%
NON-CURRENT LIABILITIES
Other Long Term Liabilities 2.24 6.03 -3.79 -169.20%
Long Term Provisions 21.09 26.67 -5.58 -26.46%
Total Non-Current Liabilities 23.33 32.7 -9.37 -40.16%
CURRENT LIABILITIES
Trade Payables 91.42 83.28 8.14 8.90%
Other Current Liabilities 80.99 102.82 -21.83 -26.95%
Short Term Provisions 23.61 39.16 -15.55 -65.86%
Total Current Liabilities 196.02 225.26 -29.24 -14.92%
Total Capital And Liabilities 1,759.46 991.22 768.24 43.66%
ASSETS
NON-CURRENT ASSETS
Tangible Assets 99.33 114.28 -14.95 -15.05%
Intangible Assets 0.43 0.79 -0.36 -83.72%
Capital Work-In-Progress 17.35 8.9 8.45 48.70%
Other Assets 3.82 0 3.82 100.00%
Fixed Assets 120.93 123.97 -3.04 -2.51%
Deferred Tax Assets [Net] 18.03 30.8 -12.77 -70.83%
Long Term Loans And Advances 0.06 0.13 -0.07 -116.67%
Other Non-Current Assets 86.14 83.99 2.15 2.50%
Total Non-Current Assets 225.16 238.89 -13.73 -6.10%
CURRENT ASSETS
Current Investments 0 69.97 -69.97 0.00%
Inventories 113.35 157.74 -44.39 -39.16%
Trade Receivables 66.17 122.66 -56.49 -85.37%
Cash And Cash Equivalents 1,243.42 278.18 965.24 77.63%
Short Term Loans And Advances 0.06 0.1 -0.04 -66.67%
OtherCurrentAssets 111.3 123.68 -12.38 -11.12%
Total Current Assets 1,534.30 746.11 788.19 51.37%
Total Assets 1,759.46 991.22 768.24 43.66%
Analysis of Comparative Balance Sheet
The Equity Share Capital from operations in the year 2017 was Rs.16.6 Cr. and in the year 2018 was Rs.16.6
Cr. The change in amount is 0 and the change in percentage is 0%.
Equity Share Capital is constant.
The Total Share Capital from operations in the year 2017 was Rs.16.6 Cr. and in the year 2018 was Rs.16.6 Cr.
The change in amount is 0 and the change in percentage is 0%.
Total Share Capital is constant.
The Reserves and Surplus from operations in the year 2017 was Rs.716.66 Cr. and in the year 2018 was
Rs.1523.51 Cr. The change in amount is 806.85 Cr. and the change in percentage is 52.96%.
Reserves and Surplus had increased.
The Total Shareholders Funds from operations in the year 2017 was Rs.733.26 Cr. and in the year 2018 was
Total Shareholders Funds had increased.
The Other Long Term Liabilities from operations in the year 2017 was Rs.6.03 Cr. and in the year 2018 was
Rs.2.24 Cr. The change in amount is -3.79 Cr. and the change in percentage is -169.20%.
Other Long Term Liabilities had decreased.
The Long Term Provisions from operations in the year 2017 was Rs.26.67 Cr. and in the year 2018 was
Rs.21.09 Cr. The change in amount is -5.58 Cr. and the change in percentage is -26.46%. Long Term
Provisions had decreased.
TheTotal Non-Current Liabilities from operations in the year 2017 was Rs.32.7 Cr. and in the year 2018 was
Rs.23.33 Cr. The change in amount is -9.37Cr. and the change in percentage is -40.16%.
Total Non-Current Liabilities had decreased.
The Trade Payables from operations in the year 2017 was Rs.83.28Cr. and in the year 2018 was Rs.91.42 Cr.
The change in amount is 8.14 Cr. and the change in percentage is 8.90%.
Trade Payables had increased.
The Other Current Liabilities from operations in the year 2017 was Rs.102.82 Cr. and in the year 2018 was
Other Current Liabilities Funds had decreased.
The Short Term Provisions from operations in the year 2017 was Rs.39.16 Cr. and in the year 2018 was
Short Term Provisions had decreased.
The Total Current Liabilities from operations in the year 2017 was Rs.225.26 Cr. and in the year 2018 was
Total Current Liabilities had decreased.
The Total Capital And Liabilities from operations in the year 2017 was Rs.991.22 Cr. and in the year 2018 was
Total Capital And Liabilities had increased.
The Tangible Assets from operations in the year 2017 was Rs.114.28 Cr. and in the year 2018 was Rs.99.33 Cr.
The change in amount is -14.95 Cr. and the change in percentage is -15.05%. Tangible Assets had decreased.
The Intangible Assets from operations in the year 2017 was Rs.0.79 Cr. and in the year 2018 was Rs.0.43 Cr.
The change in amount is 0.36Cr. and the change in percentage is -83.72%. Intangible Assets had decreased.
The Capital Work-In-Progress from operations in the year 2017 was Rs.8.9 Cr. and in the year 2018 was
Capital Work-In-Progress had increased.
The Other Assets from operations in the year 2017 was Rs.0 Cr. and in the year 2018 was Rs. 3.82 Cr. The
change in amount is 3.82 Cr. and the change in percentage is 100%.
Other Assets had increased.
The Fixed Assets from operations in the year 2017 was Rs.123.97 Cr. and in the year 2018 was Rs.120.93 Cr.
The change in amount is -3.04 Cr. and the change in percentage is -2.51%.
Fixed Assets had decreased.
The Deferred Tax Assets [Net] from operations in the year 2017 was Rs.30.8 Cr. and in the year 2018 was
Deferred Tax Assets [Net] had decreased.
The Long Term Loans And Advances from operations in the year 2017 was Rs.0.13 Cr. and in the year 2018
was Rs.0.06 Cr. The change in amount is 0.07 Cr. and the change in percentage is 116.67%.
Long Term Loans And Advances had decreased.
The Other Non-Current Assets from operations in the year 2017 was Rs.83.99 Cr. and in the year 2018 was
Rs.86.14 Cr. The change in amount is 2.15 Cr. and the change in percentage is 2.50%. Other Non-Current
Assets had increased.
The Total Non-Current Assets from operations in the year 2017 was Rs.238.89 Cr. and in the year 2018 was
Total Non-Current Assets had decreased.
The Current Investments from operations in the year 2017 was Rs.69.97 Cr. and in the year 2018 was Rs.0 Cr.
The change in amount is -69.97 Cr. and the change in percentage is 0%.
Current Investments had decreased.
The Inventories from operations in the year 2017 was Rs.157.74 Cr. and in the year 2018 was Rs.113.35 Cr.
The change in amount is -44.39 Cr. and the change in percentage is -39.16%. Inventories had decreased.
The Trade Receivables from operations in the year 2017 was Rs.122.66 Cr. and in the year 2018 was Rs.66.17
Cr. The change in amount is -56.49 Cr. and the change in percentage is -85.37%. Trade Receivables had
decreased.
The Cash And Cash Equivalents from operations in the year 2017 was Rs.278.18 Cr. and in the year 2018 was
Cash And Cash Equivalents had increased.
The Short Term Loans And Advances from operations in the year 2017 was Rs.0.1 Cr. and in the year 2018 was
Short Term Loans And Advances had decreased.
The Other Current Assets from operations in the year 2017 was Rs.123.68 Cr. and in the year 2018 was
Other Current Assets had decreased.
The Total Current Assets from operations in the year 2017 was Rs.746.11 Cr. and in the year 2018 was
Total Current Assets had increased.
The Total Assets from operations in the year 2017 was Rs.991.22 Cr. and in the year 2018 was Rs.1759.46 Cr.
The change in amount is 768.24 Cr. and the change in percentage is 43.66%. Total Assets had increased.
Interpretation of Comparative Balance Sheet
There is a change in total share capital, which shows company has not issued any shares in this year.
There is a major increase in revenues and surplus which indicates company’s strategy of reinvesting capital and
giving as the dividend not for future.
We can observe a major reduction in total non-current liabilities which shows company is focusing on
improving its solvency and drives itself towards a burden free operation.
Total current liquidities are also decreased which mean that company has sorted as settled short term and other
current liquidity
Total non-current assets are reduced which shows that company has successfully liquidated of them and some
are reduced by depreciation and we can note significant change in other assets also.
Total current assets are increased significantly which is due to increment in cash is cash equivalents which
shows company is doing well with its cash flow.
VERTICAL ANALYSIS
Common size P&L
3/31/2018 3/31/2017
Rs in crores PERCENTAGE Rs in crores PERCENTAGE
INCOME
Revenue From Operations [Gross] 818.19 100.00% 1,088.57 101.44%
Less: Excise/Service Tax/Other Levies 0 0.00% 15.49 1.44%
Revenue From Operations [Net] 818.19 100.00% 1,073.08 100.00%
Other Operating Revenues 30.8 3.76% 30.88 2.87%
Total Operating Revenues 848.99 103.68% 1,103.96 102.87%
Other Revenues 24.39 2.98% 23.97 2.23
Total Revenue 873.38 106.69% 1,127.93 105.11%
EXPENSES
Cost Of Materials Consumed 245.52 30.00% 236.56 22.04%
Purchase Of Stock-In Trade 27.31 3.33% 202.24 18.84%
Changes In Inventories Of FG, WIP And
Stock-In Trade -3.47 0.42% 2.29 0.21%
Employee Benefit Expenses 131.27 16.04% 169.64 15.80%
Depreciation And Amortisation Expenses 20.35 2.48% 43.63 4.06%
Other Expenses 300.98 36.78% 338.38 31.53%
Total Expenses 721.96 88.12% 992.74 92.51%
Profit/Loss Before Exceptional, ExtraOrdinary

Items And Tax 151.42 18.50% 135.19 12.59%
Exceptional Items 6.56 0.80% 17 1.58%
Profit/Loss Before Tax 157.98 19.30% 152.19 14.18%
Current Tax 54.96 6.71% 63.5 5.91%
Deferred Tax 6.02 0.73% -10.24 -0.95%
Tax For Earlier Years -4.74 0.57% 5.02 0.46%
Total Tax Expenses 56.24 6.87% 58.28 5.43%
Profit/Loss After Tax And Before
ExtraOrdinary Items 101.74 12.43% 93.91 8.75%
Profit/Loss From Continuing Operations 101.74 12.43% 93.91 8.75%
Profit Loss From Discontinuing Operations 979.59 119.73% 0 0.00%
Total Tax Expenses Discontinuing Operations 242.61 29.57% 0 0.00%
Net Profit Loss From Discontinuing 736.98 90.07% 0 0.00%
Operations
Profit/Loss For The Period 838.72 102.50% 93.91 8.75%
OTHER ADDITIONAL INFORMATION

EARNINGS PER SHARE
Basic EPS (Rs.) 505.3 61.75% 56.6 5.27%
Diluted EPS (Rs.) 505.3 61.75% 56.6 5.27%
VALUE OF IMPORTED AND
INDIGENIOUS RAW MATERIALS
Imported Raw Materials 0 - 0 -
Indigenous Raw Materials 0 - 0 -
STORES, SPARES AND LOOSE TOOLS
Imported Stores And Spares 0 - 0 -
Indigenous Stores And Spares 0 - 0 -
DIVIDEND AND DIVIDEND
PERCENTAGE
Equity Share Dividend 24.9 3.04% 18.26 1.70%
Tax On Dividend 5.15 0.63% 3.72 0.34%
Equity Dividend Rate (%) 4,400.00 53.77% 150 13.97%
Analysis for Common size P&L
The gross revenue from operations in the year 2017 was Rs. 1088.57 Cr. and in the year 2018 was Rs. 818.19
Cr. It’s percentage contribution to total liabilities in the year 2017 was 101.44% and 2018 was 100% . Hence,
it’s percentage contribution decreased.
The net revenue from operations in the year 2017 was Rs. 1073.08 Cr. and in the year 2018 was Rs. 818.19 Cr.
It’s percentage contribution to total liabilities in the year 2017 was 100% and 2018 was 100% . Hence, it’s
percentage contribution is constant.
The total operating revenue in the year 2017 was Rs. 1103.96 Cr. and in the year 2018 was Rs. 848.99 Cr. It’s
percentage contribution to total liabilities in the year 2017 was 102.87% and 2018 was 103.68% . Hence, it’s
percentage contribution increased.
The Other Income in the year 2017 was Rs. 23.97 Cr. and in the year 2018 was Rs. 24.39 Cr. It’s percentage
contribution to total liabilities in the year 2017 was 2.23% and 2018 was 2.98% . Hence, it’s percentage
contribution increased.
The total revenue in the year 2017 was Rs. 1127.93 Cr. and in the year 2018 was Rs. 873.38 Cr. It’s percentage
The Cost of materials consumed in the year 2017 was Rs. 236.56 Cr. and in the year 2018 was Rs. 245.52 Cr.
It’s percentage contribution to total liabilities in the year 2017 was 22.04% and 2018 was 30% . Hence, it’s
The Changes in inventory of FG, WIP and Stock-in-trade in the year 2017 was Rs. 2.29 Cr. and in the year 2018
was Rs. -3.47 Cr. It’s percentage contribution to total liabilities in the year 2017 was 2.1% and 2018 was 4.2% .
Hence, it’s percentage contribution increased.
The Employee Benefit Expense in the year 2017 was Rs. 169.64 Cr. and in the year 2018 was Rs. 131.27 Cr.
It’s percentage contribution to total liabilities in the year 2017 was 15.80% and 2018 was 16.04% . Hence, it’s
The Depreciation and Amortisation Expense in the year 2017 was Rs. 43.63 Cr. and in the year 2018 was Rs.
20.35 Cr. It’s percentage contribution to total liabilities in the year 2017 was 4.06% and 2018 was 2.48% .
Hence, it’s percentage contribution decreased.
The Other Expenses in the year 2017 was Rs. 338.38 Cr. and in the year 2018 was Rs. 300.98 Cr. It’s
percentage contribution to total liabilities in the year 2017 was 31.53% and 2018 was 36.78%. Hence, it’s
The Total Expense in the year 2017 was Rs. 992.74 Cr. and in the year 2018 was Rs. 721.96 Cr. It’s percentage
contribution to total liabilities in the year 2017 was 92.51% and 2018 was 88.12%. Hence, it’s percentage
contribution decreased.
The Profit/Loss Before Tax in the year 2017 was Rs. 152.19 Cr. and in the year 2018 was Rs. 157.98 Cr. It’s
The Profit/Loss After Tax in the year 2017 was Rs. 93.91 Cr. and in the year 2018 was Rs. 101.74 Cr. It’s
The Total Tax Expense in the year 2017 was Rs. 58.28 Cr. and in the year 2018 was Rs. 56.24 Cr. It’s
The Profit/Loss for the period in the year 2017 was Rs. 93.91 Cr. and in the year 2018 was Rs. 838.72 Cr. It’s
The Basic Earning per share in the year 2017 was Rs. 56.6 Cr. and in the year 2018 was Rs. 505.3 Cr. It’s
Diluted Earning per share in the year 2017 was Rs. 56.6 Cr. and in the year 2018 was Rs. 505.3 Cr. It’s
Equity Share Dividend in the year 2017 was Rs. 18.26 Cr. and in the year 2018 was Rs. 24.9 Cr. It’s percentage
Tax on Dividend in the year 2017 was Rs. 3.72 Cr. and in the year 2018 was Rs. 5.15 Cr. It’s percentage
Equity Dividend Rate in the year 2017 was Rs. 150 Cr. and in the year 2018 was Rs. 4400 Cr. It’s percentage
Interpretation for Common Size P & L
Total operating revenue is increased proportionally as compared to previous years which shows that company’s
top level management is very efficient but majority of total operating revenue is net sales so company must
diversify sources and increase in volume of other revenues
Total revenue is increased by a very minor changes compared with the previous year but still its important for
company to slowly and gradually improve rate of growth of incomes and have multiple income sources
Cogs has increased a lot though sales are increased but this much percentage of sales as\re quiet higher as such
significance change isn’t observed in sales
Proportion of employees benefit expense has increased which shows that company not only creates employment
opportunities around the globe but spends after their welfare and happiness too by making their living
standards high
The depreciation amortisation expenses are reduced which shows company follows rbm
Total expenses are reduced which shows how cost effective and proficient the top level of company is company
conscious about costing in such a competitive market
Profit Before Tax is increased by a very notable percent which shows company’s major source of income is
sales so even sales are also increased,but proportionate results shows company is doing well
Total operating revenue is increased proportionally as compared to previous years which shows that company’s
top level management is very efficient but majority of total operating revenue is net sales so company must
diversify sources and increase in volume of other revenues
Total revenue is increased by a very minor changes compared with the previous year but still its important for
company to slowly and gradually improve rate of growth of incomes and have multiple income sources
Cogs has increased a lot though sales are increased but this much percentage of sales as\re quiet higher as such
significance change isn’t observed in sales
Proportion of employees benefit expense has increased which shows that company not only creates employment
opportunities around the globe but spends after their welfare and happiness too by making their living
standards high
The depreciation amortisation expenses are reduced which shows company follows rbm
Total expenses are reduced which shows how cost effective and proficient the top level of company is company
conscious about costing in such a competitive market
Profit Before Tax is increased by a very notable percent which shows company’s major source of income is
sales so even sales are also increased,but proportionate results shows company is doing well
Common size Balance Sheet
3/31/2018 3/31/2017
Rs in crores PERCENTAGE Rs in crores PERCENTAGE
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 16.6 0.94% 16.6 1.67%
Total Share Capital 16.6 0.94% 16.6 1.67%
Reserves and Surplus 1,523.51 86.59% 716.66 72.30%
Total Reserves and Surplus 1,523.51 86.59% 716.66 72.30%
Total Shareholders Funds 1,540.11 87.53% 733.26 73.98%
NON-CURRENT LIABILITIES
Other Long Term Liabilities 2.24 0.13% 6.03 0.61%
Long Term Provisions 21.09 1.20% 26.67 2.69%
Total Non-Current Liabilities 23.33 1.33% 32.7 3.30%
CURRENT LIABILITIES
Trade Payables 91.42 5.20% 83.28 8.40%
Other Current Liabilities 80.99 4.60% 102.82 10.37%
Short Term Provisions 23.61 1.34% 39.16 3.95%
Total Current Liabilities 196.02 11.14% 225.26 22.73%
Total Capital And Liabilities 1,759.46 100.00% 991.22 100.00%
ASSETS
NON-CURRENT ASSETS
Tangible Assets 99.33 5.65% 114.28 11.53%
Intangible Assets 0.43 0.02% 0.79 0.08%
Capital Work-In-Progress 17.35 0.99% 8.9 0.90%
Other Assets 3.82 0.22% 0 0.00%
Fixed Assets 120.93 6.87% 123.97 12.51%
Deferred Tax Assets [Net] 18.03 1.02% 30.8 3.11%
Long Term Loans And Advances 0.06 0.00% 0.13 0.01%
Other Non-Current Assets 86.14 4.90% 83.99 8.47%
Total Non-Current Assets 225.16 12.80% 238.89 24.10%
CURRENT ASSETS
Current Investments 0 0.00% 69.97 7.06%
Inventories 113.35 6.44% 157.74 15.91%
Trade Receivables 66.17 3.76% 122.66 12.37%
Cash And Cash Equivalents 1,243.42 70.67% 278.18 28.06%
Short Term Loans And Advances 0.06 0.00% 0.1 0.01%
OtherCurrentAssets 111.3 6.33% 123.68 12.48%
Total Current Assets 1,534.30 87.20% 746.11 75.27%
Total Assets 1,759.46 100.00% 991.22 100.00%
Analysis for Common size Balance Sheet
The Equity Share Capital from operations in the year 2017 was Rs.16.6 Cr. and in the year 2018 was Rs.16.6
Cr. It’s percentage contribution to total liabilities in the year 2017 was 1.67% and 2018 was 0.94% . Hence, it’s
percentage contribution decreased.
The Total Share Capital from operations in the year 2017 was Rs.16.6 Cr. and in the year 2018 was Rs.16.6 Cr.
The Reserves and Surplus from operations in the year 2017 was Rs.716.66 Cr. and in the year 2018 was
Rs.1523.51 Cr. It’s percentage contribution to total liabilities in the year 2017 was 72.30% and 2018 was
86.59% . Hence, it’s percentage contribution increased.
The Total Shareholders Funds from operations in the year 2017 was Rs.733.26 Cr. and in the year 2018 was
Rs.1540.11 Cr. It’s percentage contribution to total liabilities in the year 2017 was 73.98% and 2018 was
87.53% . Hence, it’s percentage contribution increased.
The Other Long Term Liabilities from operations in the year 2017 was Rs.6.03 Cr. and in the year 2018 was
Rs.2.24 Cr. It’s percentage contribution to total liabilities in the year 2017 was 0.61% and 2018 was 0.13% .
The Long Term Provisions from operations in the year 2017 was Rs.26.67 Cr. and in the year 2018 was
The Total Non-Current Liabilities from operations in the year 2017 was Rs.32.7 Cr. and in the year 2018 was
The Trade Payables from operations in the year 2017 was Rs.83.28Cr. and in the year 2018 was Rs.91.42 Cr.
The Other Current Liabilities from operations in the year 2017 was Rs.102.82 Cr. and in the year 2018 was
The Short Term Provisions from operations in the year 2017 was Rs.39.16 Cr. and in the year 2018 was
The Total Current Liabilities from operations in the year 2017 was Rs.225.26 Cr. and in the year 2018 was
Rs.196.02 Cr. It’s percentage contribution to total liabilities in the year 2017 was 22.73% and 2018 was 11.14%
. Hence, it’s percentage contribution decreased.
The Total Capital And Liabilities from operations in the year 2017 was Rs.991.22 Cr. and in the year 2018 was
Rs.1759.46 Cr. It’s percentage contribution to total liabilities in the year 2017 was 100% and 2018 was 100% .
Hence, it’s percentage contribution is constant.
The Tangible Assets from operations in the year 2017 was Rs.114.28 Cr. and in the year 2018 was Rs.99.33 Cr.
It’s percentage contribution to total assets in the year 2017 was 11.53% and 2018 was 5.65% . Hence, it’s
The Intangible Assets from operations in the year 2017 was Rs.0.79 Cr. and in the year 2018 was Rs.0.43 Cr.
The Capital Work-In-Progress from operations in the year 2017 was Rs.8.9 Cr. and in the year 2018 was
Rs.17.35 Cr. It’s percentage contribution to total assets in the year 2017 was 0.90% and 2018 was 0.99% .
The Other Assets from operations in the year 2017 was Rs.0 Cr. and in the year 2018 was Rs. 3.82 Cr. It’s
percentage contribution to total assets in the year 2017 was 0% and 2018 was 0.22% . Hence, it’s percentage
The Fixed Assets from operations in the year 2017 was Rs.123.97 Cr. and in the year 2018 was Rs.120.93 Cr.
The Deferred Tax Assets [Net] from operations in the year 2017 was Rs.30.8 Cr. and in the year 2018 was
The Long Term Loans And Advances from operations in the year 2017 was Rs.0.13 Cr. and in the year 2018
was Rs.0.06 Cr. It’s percentage contribution to total assets in the year 2017 was 0.01% and 2018 was 0.00% .
The Other Non-Current Assets from operations in the year 2017 was Rs.83.99 Cr. and in the year 2018 was
The Total Non-Current Assets from operations in the year 2017 was Rs.238.89 Cr. and in the year 2018 was
The Current Investments from operations in the year 2017 was Rs.69.97 Cr. and in the year 2018 was Rs.0 Cr
The Inventories from operations in the year 2017 was Rs.157.74 Cr. and in the year 2018 was Rs.113.35 Cr. It’s
percentage contribution to total assets in the year 2017 was 15.91% and 2018 was 7.44% . Hence, it’s
The Trade Receivables from operations in the year 2017 was Rs.122.66 Cr. and in the year 2018 was Rs.66.17
Cr. It’s percentage contribution to total assets in the year 2017 was 12.37% and 2018 was 3.76% . Hence, it’s
The Cash And Cash Equivalents from operations in the year 2017 was Rs.278.18 Cr. and in the year 2018 was
The Short Term Loans And Advances from operations in the year 2017 was Rs.0.1 Cr. and in the year 2018 was
Rs.0.06 Cr. It’s percentage contribution to total assets in the year 2017 was 0.01% and 2018 was 0.00% . Hence,
it’s percentage contribution decreased.
The Other Current Assets from operations in the year 2017 was Rs.123.68 Cr. and in the year 2018 was
The Total Current Assets from operations in the year 2017 was Rs.746.11 Cr. and in the year 2018 was
The Total Assets from operations in the year 2017 was Rs.991.22 Cr. and in the year 2018 was Rs.1759.46 Cr.
It’s percentage contribution to total assets in the year 2017 was 100% and 2018 was 100% . Hence, it’s
percentage contribution is constant
Interpretation for common size Balance Sheet
Looking at decreased percentage of total share capital we can interprete that company relies more on reserves
and surplus for raising finances which positively affects control of top level management on company without
bearing more debts for generating capital
A significant change is observed in total reserves and surplus which indicates company has reinvested profit by
higher proportion compared to previous years company may have kept them for specific purpose or maintaining
dividend rates
Increment in total share-holders funds indicate that company is having a higher proportion of owner’s fund and
reinvested earnings in capital than liabilities so it’s a very good sign that company is not dependent on debt
funds . Total noncurrent liability’s proportion in total equity and liability is almost reduced by half which
indicates that company has settled many of long term provisions and other noncurrent liabilities and company
is successful in improving its solvency status
Total current liabilities are also reduced by almost half compared to previous years which shows that company
has also successfully improved its cash flow and liquidity
Fixed assets are reduced proportionately which shows that company has increased proportion of working capital
than fixed capital this also indicates that company’s requirement changed proportions of fixed and working
capital which also changes sources of finance and cost of finance
Long term loans and advances are reduced proportionately nd by amount also which depicts that company has
liquidated major amount of loans given which increased their cash inflow and maintained their liquidity
Thus total non current assets are decreased proportionately which shows that company has adopted asset light
model for business which also shows that it has procured more working capital
Current investments are valued 0 in current year which shows that company has encashed the investment
Trade receivables are significantly decreased not only proportionally but by amount also which depicts that the
company is changing its policies towards proportion of cash and credit sales and it also shows that company is
success cash flow by collecting money on right time
Total current assets are increased by a massive difference,proportionally which shows an increase in investment
of working capital in business
RATIO ANALYSIS
I. Net Profit Margin: The net profit margin is equal to how much net income or profit is
generated as a percentage of revenue.Net profit margin is the ratio of net profits to revenues for
a company or business segment. Net profit margin is typically expressed as a percentage but can
also be represented in decimal form. The net profit margin illustrates how much of each dollar
in revenue collected by a company translates into profit.
The formula for Net Profit Margin is:

Net Income
Net Profit Margin = Net Sales ×100
2017
Net Income
93.91
= 1073.08 * 100
=8.75%
2018
Net Income
101.74
= 818.19 *100
= 12.43%
Analysis and Interpretation
The Net Profit Margin for the year 2017 is 8.75% and for the year 2018 is 12.43%. There is an
increase of Net Profit Margin by 3.68%.
Year Net Profit Margin

2017 8.75
2018 12.43
II. Return on capital employed: Return on capital employed (ROCE) is a financial ratio
that measures a company's profitability and the efficiency with which its capital is used. In other
words, the ratio measures how well a company is generating profits from its capital. The ROCE
ratio is considered an important profitability ratio and is used often by investors when screening
for suitable investment candidates
The formula for Return on capital employed is:
Profit before interest ∧taxation

Return on capital employed = Total capital employed
2017
152.19
= 1449.9 *100
= 10.49%
2018
157.98
= 3063.62 *100
= 5.15%
The Return on Capital Employed for the year 2017 is 10.49% and for the year 2018 is 5.15%.
There is a decrease of Return on Capital Employed by 5.34%.
Year Return of capital employed

2017 10.49
2018 5.15
III. Return on equity: Return on equity (ROE) is a measure of financial performance
calculated by dividing net income by shareholders' equity. Because shareholders' equity is equal
to a company’s assets minus its debt, ROE could be thought of as the return on net assets
The formula for Return on equity is:

Profit after taxation−Preference Dividends
Return on equity = Ordinary shareholders funds
2017
93.91−18.26
= 806.85
*100
= 9.37%
2018
101.74−24.9
= 1540.11
*100
= 4.98%
The Return on Equity for the year 2017 is 9.37% and for the year 2018 is 4.98%. There is a
decrease of Return on Equity by 4.39%.
Year Return on equity

2017 9.37
2018 4.98
IV. Capital Turnover ratio: Working capital turnover is a ratio that measures how
efficiently a company is using its working capital to support a given level of sales. Also referred
to as net sales to working capital, work capital turnover shows the relationship between the
funds used to finance a company's operations and the revenues a company generates as a result.
The formula for Capital Turnover ratio is:

Net Sales
Capital Turnover ratio = Capital Employed / Owner ' s Equity
2017
Net Sales
1073.08
= 16.6
= 64.64
2018
Net Sales
818.19
= 16.6
= 49.28
The Capital Turnover Ratio for the year 2017 is 64.64% and for the year 2018 is 49.28. There is
a decrease of Capital Turnover Ratio by 15.36.
Year Capital Turnover Ratio

2017 64.64
2018 49.28
V. Assets turnover ratio: The asset turnover ratio measures the value of a company's sales
or revenues relative to the value of its assets. The asset turnover ratio can be used as an
indicator of the efficiency with which a company is using its assets to generate revenue. The
higher the asset turnover ratio, the more efficient a company. Conversely, if a company has a
low asset turnover ratio, it indicates it is not efficiently using its assets to generate sales.
The formula for Assets turnover ratio is:

Net SalesTurnover
Assets turnover ratio = Net Tangible Assets
2017
Net SalesTurnover
1073.08
= 114.28
=9.83
2018
Net SalesTurnover
818.19
= 99.33
= 8.23
The Asset Turnover Ratio for the year 2017 is 9.83 and for the year 2018 is 8.23. There is a
decrease of Asset Turnover Ratio by 1.6 .
Year Asset Turnover Ratio

2017 9.83
2018 8.23
VI. Fixed assets turnover ratio: The fixed asset turnover ratio (FAT) is, in general, used by
analysts to measure operating performance. This efficiency ratio compares net sales (income
statement) to fixed assets (balance sheet) and measures a company's ability to generate net sales
from its fixed-asset investments, namely property, plant, and equipment (PP&E). The fixed
asset balance is used as a net of accumulated depreciation. In general, a higher fixed asset
turnover ratio indicates that a company has more effectively utilized investment in fixed assets
to generate revenue.
The formula for Fixed Assets Turnover ratio is:

Net Sales
Fixed Assets Turnover ratio = Average Assets less depreciation
2017
Net Sales
1073.08
= 123.97
= 8.65
2018
Net Sales
818.19
= 120.93
= 6.76
The Fixed Asset Turnover Ratio for the year 2017 is 8.65 and for the year 2018 is 6.76. There is
a decrease of Fixed Asset Turnover Ratio by 1.89 .
Year Fixed Assets Turnover Ratio

2017 8.65
2018 6.76
VII. Inventory turnover ratio: Inventory turnover is the number of times a company sells
and replaces its stock of goods during a period. Inventory turnover provides insight as to how
the company manages costs and how effective their sales efforts have been
The formula for the Inventory Turnover ratio is:

Cost of goods sold
Inventory Turnover ratio = Average Inventories
2017
Cost of goods sold
236.56
= 157.74
= 1.49
2018
Cost of goods sold
245.52
= 113.35
= 2.16
The Inventory Turnover Ratio for the year 2017 is 1.49 and for the year 2018 is 2.16. There is
an increase of Inventory Turnover Ratio by 0.67.
Year Inventory Turnover Ratio

2017 1.49
2018 2.16
.
VIII. Working capital position: Working capital, also known as net working capital (NWC),
is the difference between a company’s current assets, such as cash, accounts receivable
(customers’ unpaid bills) and inventories of raw materials and finished goods, and its current
liabilities, such as accounts payable. Net operating working capital is a measure of a company's
liquidity and refers to the difference between operating current assets and operating current
liabilities. In many cases, these calculations are the same and are derived from company cash
plus accounts receivable plus inventories, less accounts payable and less accrued expenses.
Working capital is a measure of a company's liquidity, operational efficiency, and its short-term
financial health. If a company has substantial positive working capital, then it should have the
potential to invest and grow. If a company's current assets do not exceed its current liabilities,
then it may have trouble growing or paying back creditors, or even go bankrupt.
The formula for Working Capital Position ratio is:
Working Capital Position ratio = Current Assets - Current Liabilities
2017
= 746.11 - 225.26
= 520.85
2018
= 1534.30 - 196
= 1338.3

The Working Capital Position Ratio for the year 2017 is 520.85 and for the year 2018 is
1338.3. There is an increase of Working Capital Position Ratio by 817.45 .
Year Working Capital Position Ratio

2017 520.85
2018 1338.3
IX. Current ratio: The current ratio is a liquidity ratio that measures a company's ability to
pay short-term obligations or those due within one year. It tells investors and analysts how a
company can maximize the current assets on its balance sheet to satisfy its current debt and
other payables.
The formula for Current ratio is:

Current Assets
Current ratio = Current Liabilities
2017
Current Assets
746.11
= 225.26
= 3.31
2018
Current Assets
1534.3
= 196
= 7.82
The Current Ratio for the year 2017 is 3.31 and for the year 2018 is 7.82. There is an increase of
Current Ratio by 4.51 .
Year Current Ratio

2017 3.31
2018 7.82
X. Liquidity ratio: Liquidity ratios are an important class of financial metrics used to
determine a debtor's ability to pay off current debt obligations without raising external capital.
Liquidity ratios measure a company's ability to pay debt obligations and its margin of safety
through the calculation of metrics including the current ratio, quick ratio, and operating cash
flow ratio. Current liabilities are analyzed in relation to liquid assets to evaluate the coverage of
short-term debts in an emergency.
The formula for Liquidity ratios are:
➔ Current ratio: As given above

Liquid Assets
➔ Acid test ratio = Current Liabilities
2017
Liquid Assets
278.18
= 225.26
= 1.23
2018
Liquid Assets
1243.42
= 196
= 6.34
The Acid Test Ratio for the year 2017 is 1.23 and for the year 2018 is 6.34. There is an increase
of Acid Test Ratio by 5.11
Year Acid Test Ratio

2017 1.23
2018 6.34
XI. Debt on equity ratio: The debt-to-equity (D/E) ratio is calculated by dividing a
company’s total liabilities by its shareholder equity. These numbers are available on the balance
sheet of a company’s financial statements. The ratio is used to evaluate a company's financial
leverage. The D/E ratio is an important metric used in corporate finance. It is a measure of the
degree to which a company is financing its operations through debt versus wholly-owned funds.
More specifically, it reflects the ability of shareholder equity to cover all outstanding debts in
the event of a business downturn. The debt-to-equity ratio is a particular type of gearing ratio.
The formula for Debt on Equity ratio is:

Longterm debts
Debt on Equity ratio = Equity funds
2017
Longterm debts
6.03
= 733.26
= 0.0082
2018
Longterm debts
2.24
= 1540.11
= 0.0014
The Debt to Equity Ratio for the year 2017 is 0.0082 and for the year 2018 is 0.0014. There is a
decrease of Debt to Equity Ratio by 0.0068 .
Year Debt on Equity Ratio

2017 0.0082
2018 0.0014
XII. Interest Coverage ratio: The interest coverage ratio is a debt ratio and profitability ratio
used to determine how easily a company can pay interest on its outstanding debt. The interest
coverage ratio may be calculated by dividing a company's earnings before interest and taxes
(EBIT) during a given period by the company's interest payments due within the same period.
The Interest coverage ratio is also called “times interest earned.” Lenders, investors, and
creditors often use this formula to determine a company's riskiness relative to its current debt or
for future borrowing.
The formula for Interest Coverage ratio is:

EBIT
Interest Coverage ratio = Interest Expense
2017
EBIT
135.19
= 338.39
= 0.39
2018
EBIT
151.42
= 300.98
= 0.50
The Interest Coverage Ratio for the year 2017 is 0.39 and for the year 2018 is 0.50. There is an
increase in Interest Coverage Ratio by 0.11 .
Year Interest Coverage Ratio

2017 0.39
2018 0.50

A Project On "Financial Statement Analysis of ": Procter and Gamble

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A

IMBA Program: Semester – I

1. (IM19083) (Khush Jain)

and indirect help and guidance of such people.

Management for providing us with this unique experiential learning opportunity,

that really helped us in improving our analytical skills and understanding of

valuable guidance for this project.

➢ Selling & Market Organizations

W. James McNerney, Jr.

2019 2018 2017 2016 2015

Net sales $67.7 $66.8 $65.1 $65.3 $70.7

Operating $5.5 $13.4 $13.8 $13.3 $11.1

Net earnings $3.9 $9.8 $15.3 $10.5 $7.0

Net earnings 5.9% 14.8% 15.7% 15.4% 11.7%

Diluted Net $1.43 $3.67 $3.69 $3.49 $2.84

Diluted Net $1.43 $3.67 $5.59 $3.69 $2.44

Core Earnings $4.52 $4.22 $3.92 $3.67 $3.76

Operating cash $15.2 $14.9 $12.8 $15.4 $14.6

Dividends per $2.90 $2.79 $2.70 $2.66 $2.59

Dividends (NYSE - PG)

Description: Common Stock

Current Dividend Yield (%) : 2.4%

Ex-Dividend Record Date Announce Date Pay Date Amount Frequency

7/18/2019 7/19/2019 7/9/2019 8/15/2019 0.7459 Quarterly

4/17/2019 4/19/2019 4/9/2019 5/15/2019 0.7459 Quarterly

1/17/2019 1/18/2019 1/8/2019 2/15/2019 0.7172 Quarterly

10/18/2018 10/19/2018 10/9/2018 11/15/2018 0.7172 Quarterly

7/19/2018 7/20/2018 7/10/2018 8/15/2018 0.7172 Quarterly

4/19/2018 4/20/2018 4/10/2018 5/15/2018 0.7172 Quarterly

1/18/2018 1/19/2018 1/9/2018 2/15/2018 0.6896 Quarterly

10/19/2017 10/20/2017 10/10/2017 11/15/2017 0.6896 Quarterly

7/19/2017 7/21/2017 7/11/2017 8/15/2017 0.6896 Quarterly

4/19/2017 4/21/2017 4/12/2017 5/15/2017 0.6896 Quarterly

1/18/2017 1/20/2017 1/10/2017 2/15/2017 0.6695 Quarterly

Profit/Loss Before Exceptional,

Tax Expenses-Continued Operations

Comparative Balance sheet

EQUITIES AND LIABILITIES

Analysis of Comparative Balance Sheet

Interpretation of Comparative Balance Sheet

Common size P&L

Profit/Loss Before Exceptional, ExtraOrdinary

OTHER ADDITIONAL INFORMATION

Analysis for Common size P&L

Interpretation for Common Size P & L

Common size Balance Sheet

Interpretation for common size Balance Sheet

The formula for Net Profit Margin is:

Year Net Profit Margin

The formula for Return on capital employed is:

Profit before interest ∧taxation

Year Return of capital employed

The formula for Return on equity is:

Year Return on equity

The formula for Capital Turnover ratio is:

Year Capital Turnover Ratio

The formula for Assets turnover ratio is:

Year Asset Turnover Ratio

The formula for Fixed Assets Turnover ratio is:

Year Fixed Assets Turnover Ratio

The formula for the Inventory Turnover ratio is:

Year Inventory Turnover Ratio

The formula for Working Capital Position ratio is: