INSTITUTE OF MANAGEMENT,

NIRMA UNIVERSITY

MBA (2020-2022)

FINANCIAL ACCOUNTING AND REPORTING ANALYSIS-

TERM 1

GODREJ CONSUMER PRODUCTS LIMITED

Proposal for the Individual assignment. In partial fulfilment of the requirements

of the Financial Accounting and Reporting Analysis course.

SUBMITTED BY:-NITISH (201129)

SECTION: - A

DATE OF SUBMISSION:-10th October’2020

SUBMITTED TO:-PROF.TEJAS MODI

 The Balance Sheet

1. List two assets having highest proportion in the total assets of the
company. Write their percentage weight in the total assets.
Other Intangible assets (Rs.805.99 Crores) and Investments in subsidiaries and
associates (Rs. 2,957.78 Crores) under the financial assets of Godrej Consumers
Product Ltd. are the two assets having highest proportion in the total assets of the
company. If we talk about their weight percentage Other Intangible assets is 11.61%
and Investments in subsidiaries and associates is 42.61% in the total assets
(Rs.6940.59 crores) of the Godrej Consumers Product Ltd.
2. What is the proportion of Intangible assets in the total assets of the
GCPL?
Intangible assets consists of Right-of-use assets (Rs.7.45 Crores), Goodwill
(Rs.2.48 Crores), other intangible assets (Rs. 805.99 Crores) and Intangible assets
under development (Rs.1.37 Crores).If we talk about their proportion of Intangible
assets(Rs.8.17.29 Crores) is 11.77% in the total assets (Rs.6940.59 crores) of the
Godrej Consumers Product Ltd.
3. What is the proportion of Non-current investments in the total
assets?
Non-current investments of Godrej Consumers Product Ltd. is Rs. 4,879.23 Crores
and if we talk about Total Assets of Godrej Consumers Product Ltd. is Rs. 6940.59
Crores. The proportion of Non-current investments is 70.29% in the total assets of
the Godrej Consumers Product Ltd.
4. What is the proportion of the trade receivables in relation to the
revenue of the company?
Trade Receivables of Godrej Consumers Product Ltd. is Rs. 305.52 Crores and if
we talk about Revenue of Godrej Consumers Product Ltd. is Rs. 5,474.45 Crores.
The proportion of the trade receivables is 5.58% in relation to the revenue of the
Godrej Consumers Product Ltd.
5. What is the proportion of current liabilities to current assets?

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 Current Liabilities of Godrej Consumers Product Ltd. is Rs. 1,724.26 Crores and if
we talk about Current Assets of Godrej Consumers Product Ltd. is Rs. 2,061.36
Crores. We have seen that Current Assets are more than the Current Liabilities. The
proportion of current liabilities is 83.64% in relation to current assets.
6. What are the company’s contingent liabilities? List at least 2
contingent liabilities.
A contingent labilities are the liabilities that may occur in the future depending on the
occurrence of a specific event. The contingent Liabilities of the Godrej Consumers
Product Ltd. is Rs. 3758.81Crores. The contingent labilities of GCPL are:-
 Claim for excise duties, taxes and other matters
 Guarantees given on behalf of subsidiaries
 Claims against the company not acknowledged as debt
 Other guarantees

The Statement of Profit and Loss

1. What are the company’s major items of revenues? How these items
have changed in percentage terms as compared to the previous
financial year?

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 The major items of revenues of the company are:-

Home Care

Personal Care

Hair Care

Revenue from Home Care in (FY2019-2020) of the Godrej Consumers Product Ltd. is
Rs. 2,826.92 Crores and in previous year (FY2018-2019) was Rs. 2,834.32 Crores
which was quite good as compared to (FY2019-2020). We have seen that there is a
decline in the Revenue of Home Care Products of the company as compared to
(FY2018-2019). It was approximately decline of Rs.7.4 crore in the revenue of home
care products, which we can say 0.26 % decline in the revenue of GCPL in (FY2019-
2020) as compared to (FY2018-2019).
Revenue from Personal Care in (FY2019-2020) of the Godrej Consumers Product
Ltd. is Rs. 1,890.17 Crores and in previous year (FY2018-2019) was Rs. 2,042.57
Crores which was quite good as compared to (FY2019-2020). We have seen that there
is a decline in the Revenue of Personal Care Products of the company as compared to
(FY2018-2019). It was approximately decline of Rs.152.4crore in the revenue of
personal care products, which we can say 7.46 % decline in the revenue of GCPL in
(FY2019-2020) as compared to (FY2018-2019).
Revenue from Hair Care in (FY2019-2020) of the Godrej Consumers Product Ltd. is
Rs. 644.18 Crores and in previous year (FY2018-2019) was Rs. 679.90 Crores which
was quite good as compared to (FY2019-2020). We have seen that there is a decline in

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 the Revenue of Hair Care Products of the company as compared to (FY2018-2019). It
was approximately decline of Rs.35.72 crore in the revenue of hair care products,
which we can say 5.25% decline in the revenue of GCPL in (FY2019-2020) as
compared to (FY2018-2019).
2. What was the total amount spent on employees? What is the
percentage to total revenue?
The Total amount spent on Employees was Rs.319.22 Crores and the total revenues
earned by the Godrej Consumers Product Ltd.is Rs. 5,474.45 Crores. The Percentage
of amount spent on employees is 5.83% in relation to the total revenue company has
earned.
3. What is the absolute amount and proportion of finance costs
(Interest) to the total revenues?
Finance Cost of Godrej Consumers Product Ltd.is Rs. 57.97 Crores and the Total
Revenues earned by the Godrej Consumers Product Ltd.is Rs. 5,474.45 Crores. We
have seen that GCPL is contributing 1.05% of finance cost to the total revenues of
Godrej Consumers Product Ltd.
4. What is the percentage of depreciation/amortization expense in
relation to the gross block value of the fixed assets and total
expenses?
Depreciation/Amortization expense of Godrej Consumers Product Ltd.is Rs. 81.37
Crores if we talk about the fixed assets of Godrej Consumers Product Ltd.is Rs.
1033.11crores and Total Expenses are Rs. 4,166.08 Crores. From this we can
conclude that Godrej Consumers Product Ltd.is bearing 1.56% on depreciation
/amortization expense in relation to the gross block value of the fixed assets and total
expenses.

Statement of Cash Flow

1. What is the pattern of cash flow as regards to three different

activities?

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 The pattern of cash flow as regards to three different activities is:

Operating Activities

Investing Activities

Financing Activities

Operating Activities: - Cash Flow from operating activities are the activities which
indicates the amount of money which company brings in from its ongoing, regular
business.
Investing Activities: - Cash Flow from investing activities are the activities which
indicates that how much cash has been generated or spended on/from various
investments in that particular year.
Financing Activities: - Cash Flow from financing activities are the activities which
indicates the net cash flows of the cash which are used in the funding of the company.
2. What is the proportion of change in working capital to the total cash
from operating activity?
Change in Working capital of Godrej Consumers Product Ltd. is Rs.308.56 Crores
and total cash from operating activity is Rs. 919.98 Crores of Godrej Consumers
Product Ltd. From this we can conclude that the change in working capital of GCPL
is 33.53% in relation to the total cash from operating activity.

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