PROJECT REPORT

ON
INDUSTRY ANALYSIS OF FMCG SECTOR

UNDER THE GUIDANCE OF

DR. HEMENDRA GUPTA SIR

SUBMITTED BY LTA06-:
AYUSH TRIPATHI- JL22PG051
ANMOL SINGH- JL22PG028
ANANYA SRIVASTAVA- JL22PG023
AYUSHI SRIVASTAVA- JL22PG054
ANUSHKA SRIVASTAVA- JL22PF035
 ACKNOWLEDGEMENT

We would like to express our gratitude and appreciation to all those

who gave us the possibility to complete this report. Special thanks to
our faculty Dr Hemendra Gupta Sir whose help, stimulating
suggestions and encouragement helped us in all time of fabrication
process and in writing this report. He offered us priceless counsel and
supported us during trying times, his assistance made a significant
difference in how well the task turned out.

Last but not the least, we want to express our gratitude to everyone
who supported and encouraged us as we worked on this task.
 EXECUTIVE SUMMARY

This report analyses and assesses the profitability and financial

performance of the FMCG industry, particularly in India, both now
and in the future. We examine HUL, ITC Agro Tech, Dabur, Godrej
Consumer Products, and Nestle as the top five FMCG companies in
India. We learn more about their sales, profitability, flexibility, brand
loyalty, and consumer awareness. The report includes all acquisitions
and mergers that the relevant company has completed. PEST analysis
of the FMCG sector discusses the fundamental political, social,
economic, and technological aspects of the sector. PEST analysis aids
the corresponding industry in overcoming upcoming difficulties. Data
is gathered in terms of net sales, R&D, advertising costs, cash flow,
and PBITM.
A corporation should concentrate on the requirements and desires of
the customers and strive to offer value-added services and products
since, as we all know, a business begins and ends with the customers.
They ought to make an effort to set themselves out from the
competition. Only by building consumer brand loyalty can items in
the FMCG sector be differentiated from one another.
The analysis highlights the fact that while entering the FMCG
industry is relatively simple, remaining in the market is a significant
problem. In order to achieve sustainability, they must create a brand
value in consumers' minds. Additionally, the study of the data reveals
that the profitability and brand value of various FMCG companies
vary. According to the company and years, their net sales, operational
profit, and PBIT also vary. Among these five FMCG companies,
HUL is at the top.
 INTRODUCTION

The fourth-largest sector in India, fast-moving consumer goods

(FMCG), has been growing at a healthy rate over time as a result of
rising disposable income, an ageing population of young people, and
increased consumer brand awareness. The FMCG industry in India is
a significant contributor to the country's GDP, with household and
personal care products making about 50% of all sale.
Fast-moving consumer goods (FMCG) are also known as consumer
packaged products (CPG). The phrase FMCG itself plainly conveys
the concept of this product. These commodities have quick turnover
times and affordable pricing. The ideal examples can be non-durable
goods like soft drinks, fast food/processed foods, medications,
cosmetics, and many other consumable goods. The phrase "non-
durable" is defined as including all products that should be used
within three years or less. Due to this very reality, FMCG products
have an extremely short shelf life, which may be a result of both their
high demand and their flimsy construction.
Although FMCG products are sold in enormous volumes, producers
have lower profit margins than retailers. However, because there will
be a lot of demand for the products, the overall profit will be
sufficient to keep the company afloat.
The nature of FMCG are as follows:

 High stock turnover

 Low price
 Low involvement of buyers
 Repeated purchase
 Large quantities
 Easily Available
 OVERVIEW

One of the most adaptable business entities are FMCG corporations. It

stands out as the largest industry in the world by itself.

 FMCG firms are flexible in nature: Since the FMCG sector is

constantly changing to reflect the times and surroundings, there is
never a dull moment. Its basic evolution is caused by a shift in
consumer demand that makes them more compelled to purchase
that goods. It continues to generate a range of customer needs. The
FMCG moves extremely quickly from the time it is purchased in
the store to the time the shelves are empty to the time the following
stock is refilled.

 FMCG companies put efforts in employee and customer

retention: The commitment of a company's employees and
customers determines its sustainability. To stay strong and make
money, FMCG places a major emphasis on client retention.
Additionally, it emphasises maintaining a happy workplace
because a happy workforce translates into a happy client.

 FMCG companies are known for their brand name: Since

people use it frequently, the FMCG brand is well-known
worldwide. From their visit to the grocery or from numerous
sources of advice, people are familiar with these brands. You can
discover different FMCG brands in every room of the house.

 FMCG ultimate objective is to deliver what the consumers

want: Customers' regular requirements and desires have been met
by this sector of the economy. It prioritises the needs of the
 customer and does everything in its power to meet their
expectations and needs.

 FMCG firms are resistant to the recession: FMCG companies

are least influenced by economic fluctuations of any size. Since
FMCG products are their fundamental needs and necessary
commodities, consumers must purchase them.

 FMCG industries focus on two B, Bigger and Better: Due to the

increased market rivalry brought on by the entry of numerous
companies, this business is expanding. In addition, FMCG firms
always concentrate on cutting-edge technology and concepts to
provide their clients superior products.

LIST OF TOP 10 FMCG COMPANIES IN INDIA

 Hindustan Unilever Ltd

 ITC Ltd
 Nestle India Ltd
 Britannia Industries Ltd
 Amul
 Dabur India Ltd
 Marico Ltd
 Colgate Palmolive India Ltd
 Godrej Consumer Products Ltd
 Tata Consumer Products Ltd
 ANALYSIS OF FMCG SECTOR

In this report, we will be doing an industry analysis on 5 major

FMCG companies of India. Namely:
1) ITC Agro tech
2) Hindustan Unilever Limited
3) Dabur India Limited
4) Godrej Consumer Products Limited
5) Nestle

Reason for choosing these Companies-

 These Industries holds maximum number of shares

 These Industries covers 70% of the total FMCG market.
 Major of Indian people are using products from these brands.
 Consumers of India are more aware about these companies.
 Advertisement and promotion of these companies are hardcore
in India.

1. ITC AGRO TECH- Agro Tech Foods Limited (ATFL) is a

publicly traded corporation that manufactures, markets, and sells
a variety of food products, including edible oils. Ready to Cook
Snacks, Ready to Eat Snacks, Spreads & Dips, Breakfast
Cereals, and Chocolate Confectionery are among the food
categories in which the Company participates. They are traded
 on both the Bombay Stock Exchange and the National Stock
Exchange (NSE) (BSE).

2. HINDUSTAN UNILEVER LIMITED- Hindustan Unilever

Limited (HUL), India's largest manufacturer of fast-moving
consumer goods, has a nearly 90-year history in the country.
Nine out of ten Indian households use one or more of their
products on any given day, providing with a special chance to
create a better future. They are renowned for outstanding brands,
the beneficial social impact they have, and their commitment to
ethical business practises.

3. DABUR INDIA LTD- Founded by S. K. Burman and with its

headquarters in Ghaziabad, Dabur Ltd. is a global Indian
consumer goods firm. It is one of the biggest fast-moving
consumer goods (FMCG) firms in India, producing natural
consumer goods and Ayurvedic medicines. The consumer care
industry contributes about 60% of Dabur's revenue, the food
industry contributes 11%, and the remaining 35% comes from
the foreign business unit.

4. GODREJ CONSUMER PRODUCTS LTD- An Indian

manufacturer of consumer goods with its headquarters in
Mumbai is called Godrej Consumer Products Limited (GCPL).
Soap, hair colourants, toiletries, and liquid detergents are among
GCPL's offerings.
5. NESTLE- The Indian division of the international Swiss firm
Nestlé is called Nestlé India Limited. Gurgaon, Haryana, serves
as the company's headquarters. Food, drinks, chocolate, and
confections are among the company's product offering. As of
2020, Nestlé India is 62.76% owned by its parent corporation.
The company operates 9 production sites across India in various
cities.
 PESTEL ANALYSIS OF FMCG INDUSTRY

 POLITICAL

1.Taxation Structure
There is a significant amount of indirect tax and a somewhat
complex tax structure. There is also a lack of homogeneity in
terms of appearance. Also high is octroi. Entry taxes and
shifting tax laws exist.

2.Issues with Infrastructure

How much the government spends on agricultural infrastructure
determines how effective FMCG is. It also heavily relies on the
transportation and electricity infrastructure.

3. Regulatory Restrictions
For diverse states, there are numerous permissions and licence
requirements. The labour laws are dated. The export process is
really laborious. The available subsidies are time-consuming
and quite ambiguous.

4. Policy structure
Approval pertaining to FDI investment in the retail sector
(single-brand and multi-brand retail, rules for obtaining a licence
to operate a business, changes to the statutory minimum price
(SMP) for commodities, and priority sector industrial
categorization.
 ECONOMICAL

1. Inflation
The amount of money that can buy reduces
significantly due to inflationary pressures.
Additionally, the idea of inflation has a significant
effect on consumer spending power. This directly
affects the investment made by businesses.

2.Income of consumers
Income increase is mostly a result of sector-specific
economic expansion. India's economy has grown
more rapidly in recent years, and the FMCG sector
has experienced strong growth as a result of the
continued and significant influence on consumer
disposable incomes.

3. Individual Consumption
In contrast to other countries, the Indian economy
has a fairly high rate of private consumption (61%).

4. Urbanization
If we talk about rural areas in India, 70% of the population
resides there. Additionally, more individuals are becoming
familiar with contemporary brands and items due to the growing
urbanisation notion. A move toward branded and packaged
goods and products has also occurred.
 SOCIAL

1. Modification in Consumer Profile

Rapid growth has been brought on by rapid urbanisation,
rising literacy rates, and rising per capita income. Demand
has changed as well. It creates many prospects for high
demand. In fact, in India, there are about 45 percent of people
under the age of 20.

2. Alteration of Lifestyle
The focus on luxury products among Indian FMCG
businesses is a result of the changing lifestyle of Indian
consumers. The market is quite unpredictable right now, and
lifestyles are changing quickly. People used to be quite
conventional and not particularly inclined to change; they
believed that once they started using a thing, they couldn't
alter it.

3. Rural emphasis
Companies are concentrating on rural areas for penetration as
the industry becomes saturated by offering consumers small-
sized or single-use packs. Companies of days give rural areas
a lot more attention. They intend to greatly increase their
segmentation.


 TECHNOLOGICAL

1.Technology advancement
New technology aids in economising production scale,
which translates to new technology aiding in boosting
production level, lowering input costs, and maximising level
of profits.

2.Innovation and discoveries:

The development of technology will result in new
technological advancements that will further advance
production process perfection.

3.Competitive forces:
As technology advances, markets will become more
competitive as consumers will have access to a wider range
of high-quality products.

4.Automation
Technology change will inevitably lead to automation, which
means that as machines get more automated, less labour will
be needed. The work was once labor-oriented, but now it is
completely completed automatically by the machines. All
work is now machine-oriented.
 ENVIROMENTAL

1.Ecological
The ecological and environmental factors, such as the
weather, climate, and climate change, which may particularly
effect the insurance, agricultural, and tourism industries. The
summer months see an increase in demand for air
conditioners in FMCG.

2. Environmental concerns
As an increasingly important component for businesses to
take into account, global warming is one of the most
important issues today. Numerous steps have been taken to
slow global warming.

3.Environmental regulations
To protect the environment, the government has issued a
number of restrictions. For instance, no business should
dispose of rubbish in waterways.
 LEGAL

1.Employement law
Every individual has an equal opportunity to work and earn a
living thanks to employment law. It offers each citizen the same
opportunity.

2.Consumer protection
The rights of consumers are protected by this law, and if a
consumer feels tricked, he or she may initiate a case against the
seller.

3.Regulations specific to industries

For instance, according to these restrictions, no industry can be
established between cities; instead, it must be located outside of
them.
 OPPORTUNITIES AND CHALLENGES IN
THE FMCG SECTOR

OPPORTUNITIES
India's FMCG industry has had 11% growth over the last several
years. This yearly double-digit increase rate suggests that consumer
demand has been rising. In the previous five years, this sector has
grown by 17%. The data demonstrates India's FMCG industry's
phenomenal expansion.

FMCG firms should pay close attention to the changing needs of their
customers, and they are doing their best to do so. They hope to
surpass their rivals and become an industry leader by doing this. This
fundamental reality suggests that the sector will grow inevitably.
Additionally, more than 700 million consumers live in rural areas,
which makes up 70% of the Indian population and 50% of the entire
FMCG industry. Currently, there are about 400 million working-age
people living in rural areas. Rural Indians on average have lower
purchasing power than their urban counterparts. In spite of this, the
FMCG business has enormous potential, and customers are moving
away from budget items and toward quality ones.

CHALLENGES
1.waste management
2.Providing relative servicing
3.Environment and Sustainability
4.Ageing
5.The automatism of sales
 BUSINESS MODEL OF COMPANY AND ITS
MAJOR SOURCES OF REVENUE

HUL
Making sustainable living normal is how Hindustan Unilever
Limited defined its mission. However, it was emphasised even
further by their 2009 tagline, "Our plan for sustainable growth."
They had strong convictions about living sustainably. The
principles followed are better prospects for youngsters, more
optimistic future, an improved future ,greater prospects for the
planet, better future for India's farmers and agriculture. The major
area of focus are consumer insights, innovation, sourcing,
manufacturing, logistics, marketing, sales, consumer use. The major
sources of revenue are financial resources, intangible assets, owned
and leased assets, input material.

DABUR
Consumer Care Division (CCD), International Business Division
(IBD), and Consumer Health Division are the three business units
that make up the corporation (CHD). The four main portfolios of
their CCD company are food, personal care, home care, and
healthcare. They sell a variety of healthcare products through their
CHD company. They operate a successful IBD division with
products like Vatika and Dabur Amla. The corporation operates 20
cutting-edge production sites around the world.

NESTLE
A subsidiary of Nestle, Nestle India Ltd. produces, distributes, and
retails consumer food and beverages. Dairy goods, nutritional
products, beverages, prepared foods and cooking utensils, chocolates,
and confectionary are all part of its product line. The corporation sells
its goods under a variety of brands, including every day, NESCAFE,
NESTEA, Maggi, KitKat, Munch, Nestle, POLO, Bar-One,
Milkmaid, Milky bar, Alpino, and Eclairs. In India, Nestle India has
branch offices and production plants. Various nations across the
world, including the US, Canada, the UK, Australia, Singapore,
Turkey, Romania, the European Union, New Zealand, and Africa, are
also recipients of its exports of goods. Gurgaon, Haryana, India,
serves as the headquarters of Nestle India.
Nestle has seven business divisions that sell goods for wellness,
nutrition, and health. The "stars" in the BCG matrix are its dairy
products, powdered & liquid drinks, prepared foods and cooking aids,
and confectionery business sectors
Chocolate is the biggest segmental motion. The company's portfolio's
smallest categories are water and sweets. With sales of 24 billion
Swiss francs, powdered and liquid beverages are the largest Nestlé
product category, followed by pet care at 15.6 billion Swiss francs.

ITC AGRO TECH

The main line of business for Agro Tech Foods Ltd. is the production
and trade of edible oils and food items.
Revenue Breakdown :
Currently, edible oils (premium and mass) make up about 61% of
revenues, followed by ready-to-eat snacks (5%), spreads and dips
(9%), ready-to-cook snacks (24%) and breakfast cereals (1%).
Revenue Concentration :
Currently, the majority of a company's sales come from its edible oil
industry, which is still subject to hazards related to oil availability,
stringent restrictions, high costs, and intense competition that leaves
little room for profit.
 Edible oil accounted for 61% of total revenues in FY21 compared to
69% in FY20, indicating a decrease in revenue concentration.

GODREJ CONSUMER PRODUCTS

BUSINESS PROCESS:

Godrej consumer products is a leading emerging markets company .

over 123 years. They have built a legacy on the strong values of
trust ,integrity and respect for others. Working on there ethics godrej
want to achieve it objective of bringing the goodness of health and
beauty to consumers in emerging trends. There vision is to be the
leading emerging market focused on multi local in FMCG player.

Strategy:

 3 by 3 approach
 Seven strategic pillars:
1. Extending leadership in our core categories and geographies
2. Accelerating innovation and building purposeful brands
3. Leveraging digital
4. Enhancing go-to-market
5. Making our supply chain best-in-class
6. Fostering an inclusive, agile, and high-performance culture
7. Building a more inclusive and greener world

The above mentioned business model helps Godrej to be in the market

since so many successful years . The outcomes of last few years are
remarkable and the existence of godrej is increased to many more
years.
CHAIRMAN’S REPORT AND MANAGEMENT
DISCUSSION ANALYSIS

HUL
The chairman’s report of HUL summarizes the FMCG
landscape of India, how HUL is creating a future fit business,
leading the environmental and social changes, to build an
intelligent enterprise with the help of the embedding technology,
to serve the future consumer in a more better way and also about
the good governance and integrity. The management discussion
is about people, shareholders, customers, suppliers and business
partners, planets and society, risk and opportunities.

DABUR
The chairman’s report of Dabur summarizes the sustainability,
resilience at the time of crisis, shareholders and how they are
using the lessons they have learned from the past two pandemics
to improve the effectiveness of the operations and construct
reliable supply chains to operate with the least amount of
disruption possible in such exceptional circumstances, they also
intend to review their business continuity plan this year to find
better synergies.

NESTLE
I am proud of the determination of my colleague partners and
stakeholders to face the context and continue to be inspired to
grow. As we forge ahead business continuity will remain rested
on the evolving equations between People Purpose Partnerships
Planet and Performance. Your Company's strong values and
purpose ensured that we headed to the societal call of duty. Your
 Company has focused on people’s and partners' safety and
wellness in these challenging times. Good governance and
transparent relationships have been at the heart of your
Company. Your Company ensured that partners received their
payments and no MSME or small businesses suffered.

ITC AGRO TECH

Although margins decreased as a result of considerable increases in

commodity prices, ATFL's Strategic Foods business closed the year
with over 400 crore in net sales, continuing to demonstrate excellent
volume-driven revenue growth of 15%. Because to price adjustments
in FY'21, the Premium Edible Oils business became more
competitive, which allowed the company to stop a multi-year drop in
Oils Gross Margin.
Finally, by franchising the Crystal brand beginning in November
2021, the company reduced considerably the revenue risk to
commodity changes. By 10 crores, the FY'22 gross margin fell short
of the prior year, with a partial offset of '13 Crore from a drop in GM
Foods GM for Edible Oils increased by 3 crore.
With a 15-year Revenue CAGR in the Foods sector of 19% The
Company is obviously on course to be one of India's best-performing
and most revered foods Companies. 5 quick minutes with a wide
range of items food categories are expanding, and the value is higher
combination of propositions and a mild A&P model signifies that
sustained significant growth is seen best by strong internal
manufacturing capabilities, a reliable flow of in class distribution
innovation.

GODREJ CONSUMER PRODUCTS

As per the chairman report , Godrej consumer products ltd has shown
another strong and profitable performance in the past years . Despite
several macro economic factors FMCG and home and personal have
shown a remarkable performance in the market.
According to chairman message The performance in fiscal year 2020
was not good. Sales declined around 4 per cent and Profit Before Tax
(pre exceptions) was flat. March 2020 was particularly impacted by
the spread of the COVID-19 pandemic and the eventual lockdown in
many geographies where the company operates. This resulted in
virtually no sales in the latter part of the month. The last year of
pandemic 2021 to current year 2022 to i.e we are able to see 2%
decline in total revenue of the company. Consolidated PBT was
flat,no change in PBT can be observed in these years.
 The godrej made some strategies which are to be followed by there
members :
They need to do more of what they do and do it even better. There is
tremendous scope to leverage their global category insights (in
household insecticides, hygiene, hair care, and air care) and unique
multi-local approach to create long-term growth in there geographies.
By offering amazing quality products at affordable prices. But more
importantly, while helping solve significant global problems,
including protecting the consumers from viruses and insect borne
diseases. The approach should be - low cost manufacturing; value for
money, disruptive, sustainable products; very strong go to market
capabilities. Which ultimately help to build long term customers.
 SHAREHOLDING PATTERN OF THE
COMPANY

HUL

 Promoters holding remain unchanged at 61.90% in sept 2022

qtr.
 FII/FPI have increased from 13.30% to 14.04% in sept 2022 qtr.
 Number of FII/FPI investors have increased from 1837 to 2025
in sept 2022 qtr.
 Mutual funds have increased holdings from 3.64% to 3.71% in
sept 2022 qtr.
 Number of MF schemes increased from 334-350 in sept 2022
qtr.
 Institutional investors have increased holdings.

DABUR
  Promoters holding remains unchanged at 67.24% in Sep 2022
qtr
 FII/FPI have increased holdings from 20.23% to 20.24% in Sep
2022 qtr.
 Number of FII/FPI investors increased from 822 to 850 in Sep
2022 qtr.
 Mutual Funds have decreased holdings from 2.77% to 2.53% in
Sep 2022 qtr
 Number of MF schemes decreased from 33 to 32 in Sep 2022
qtr
 Institutional Investors have increased holdings from 24.27% to
26.93% in Sep 2022 qtr.

NESTLE
Information about who owns what shares of Nestle India
Ltd. as of March 2022
Interpretation;
Promoters' ownership is still 62.76% in the third quarter of September
2022. In the September 2022 quarter, FII/FPI boosted their holdings
from 11.65% to 12.05%. In the third quarter of September 2022,
FII/FPI investors climbed from 829 to 875. Mutual Funds boosted
their holdings in the September 2022 quarter from 4.01% to 4.03%.
There are now 43 MF schemes, up from 42 in the third quarter of
2022. Institutional Investors' holdings grew in the third quarter of
September 2022 from 20.79% to 20.92%.

ITC AGRO TECH

Management Decisions
(i) The Annual Report includes the Management Discussion and
Analysis Report as part of the Directors' Report to the shareholders.
(ii) For the fiscal year that concluded on March 31, 2022, your
company's board has acquired statements from Senior Management
that no significant financial or business transactions have occurred in
which their personal interests could potentially conflict with those of
the company as a whole.
Shareholders right
All India newspapers publish the company's quarterly, half-yearly,
and annual financial results, which are also posted on the company's
website, www.atfoods.com. Under the "Investor relations" area of this
website, significant events, if any, are also mentioned. Every
Company Shareholder receives the full Annual Report.

GODREJ CONSUMER GOODS

As per latest update on 30 sep 2022

 Promoters pledge remained unchanged at 0.66% of holdings in

sept 22 qtr.
 Promoters holding period remains unchanged at 63.22% in sept
2022.
 Number of FII/FPI investors increased from 739 to 796 in Sep
2022 qtr.
 19.37% of shareholding is with FII
 Mutual funds have decreased holdings from 3.78% to 3.75% in
Sep 2022 qtr.
 Number of MF schemes increased from 29 to 30 in sep 2022 qtr.
 DEPRECIATION AND INVENTORY
VALUATION POLICY OF THE COMPANY

HUL
DEPRECIATION
With the following exceptions, depreciation is provided on a pro rata
basis using the straight-line approach based on the projected useful
life defined under Schedule II to the Companies Act, 2013: - Based on
the management's scientific appraisal of useful life, plant and
equipment are depreciated over a period of three to twenty-one years.
In the year of acquisition, assets costing $5,000 or less are fully
depreciated. Freehold property does not lose value. Each financial
year's conclusion involves a review and, if necessary, a future
adjustment of the residual values, usable lifetimes, and depreciation
methods of property, plant, and equipment.

INVENTORIES
A stock's value is determined by comparing it to its cost or net
realisable value. The cost is calculated using a weighted average. The
cost of raw materials, stores, and spare parts comprises purchasing
costs as well as any additional expenses necessary to bring the stocks
to their current position and state. If it is anticipated that the final
products in which they will be incorporated will be sold at a loss, the
aforementioned elements are valued at net realisable value. All
purchase costs, conversion charges, and additional expenses incurred
to bring the inventory to their current location and condition are
included in the cost of finished items and work-in-progress. The
expected selling price in the normal course of business less the
estimated completion expenses and estimated costs is the net
realisable value

DABUR
DEPRECIATION
With the exception of moulds, which are depreciated in four years
using the straight-line method based on technical advice, depreciation
on fixed assets has been provided using the straight line method in
terms of the life period of assets listed in Schedule II of the 2013
Companies Act.

INVENTORIES
At the lower of cost or net realisable value, inventories are valued.
The following criteria are still used to determine costs:
a. Moving Weighted Average basis for raw materials, packing
supplies, stores, and spare parts
b. Work-in-progress: Input costs plus overhead up to the completion
stage.
c. Finished Goods: Input Cost plus the necessary overhead

NESTLE

AMORTIZATION / DEPRECIATION
By Schedule II of the 2013 Companies Act, the Company has
determined the useful life of its property, plant, and equipment.
Depreciation has therefore been calculated based on usable lifetimes
using a technical appraisal of the relevant class of assets, including
their components. Each year, useful lifetimes and residual values are
evaluated. Depreciation is supplied using the following formula based
on the useful life of fixed assets and computed using the straight-line
method

INVENTORIES
The lower cost net realizable value is used to value inventories.
However, if the completed items in which they will be included are
anticipated to be sold at or above cost, raw materials, packaging
materials, and other supplies kept for use in the creation of inventories
are not written down below cost. The following are the basis used to
calculate the cost for different types of inventories

ITC AGRO TECH

Depreciation is calculated on cost of items of property, plant and
equipment less their estimated residual value using straight line
method over the useful life of assets estimated by internal assessment
and technical valuation carried out wherever necessary, and is
recognised in the statement of profit and loss. Depreciation for assets
purchased/ sold during the period is proportionately charged.
The Company believes the useful lives as given above best represent
the useful life of these assets based on internal assessment and
technical evaluation carried out where necessary, which is different
from the useful lives as prescribed under Part C of Schedule II of the
Companies Act, 2013. Freehold land is not depreciated. Leasehold
improvements are amortised over a period of the lease or useful life of
asset whichever is lower. The residual values, useful lives and
methods of depreciation of property, plant and equipment are
reviewed at each financial yearend. If as a result of this reassessment
there is change from previous estimate, such change is accounted for
as a change in an accounting estimate and adjusted prospectively, if
appropriate.
Inventories Policy :
Inventories are valued at the lesser of their estimated net realisable
value after accounting for obsolescence, as necessary, and their
weighted average cost, which includes direct costs, non-recoverable
taxes and duties, and other overheads incurred in purchasing the
inventories to their current location and condition.
An item-by-item comparison of cost and net realisable value is done.
With reference to the selling prices of associated completed goods,
the net realisable value of materials in use is calculated. Except in
situations where material prices have decreased and it is anticipated
that the cost of the finished goods would exceed their net realisable
value, raw materials, packing materials, and other supplies held for
use in the creation of inventories are not written down below cost.
Based on anticipated usage and product shelf life, the allowance for
inventory obsolescence is evaluated on a regular basis.

GODREJ CUNSUMER PRODUCTS

 Items of property, plant and equipment, other than Freehold

Land, are measured at cost less accumulated depreciation and
any accumulated impairment losses. Freehold land is carried at
cost and is not depreciated.

Depreciation is provided, under the Straight Line Method, pro rata to

the period of use, based on useful lives specified in Schedule II to the
Companies Act, 2013 except for the following items where useful
lives estimated by the management based on internal technical
assessment, past trends and expected operational lives differ from
those provided in Schedule II of the Companies Act 2013:
Leasehold land is amortised equally over the lease period.
 Leasehold Improvements are depreciated over the shorter of the
unexpired period of the lease and the estimated useful life of the
assets.
 Office Equipment are depreciated over 5to10 years.
 Tools (Die sets) are depreciated over a period of 9 years, and
moulds over 3 years.
 Vehicles are depreciated over a period ranging from 5 years to 8
years depending on the use of vehicles.

Depreciation methods, useful lives and residual values are reviewed

at each reporting date and adjusted if appropriate.

INVENTORY VALUATION :
The lower of cost or net realisable value is used to value inventories.
The expected selling price in the regular course of business less the
estimated completion expenses and the estimated costs required to
close the transaction is the net realisable value. Finished goods and
work-in-progress include cost of conversion and other costs incurred
in bringing the inventories to their present location and condition.
Finished goods valuation also includes excise duty. Provision is made
for cost of obsolescence and other anticipated losses, whenever
considered necessary.
 COMMON SIZE STATEMENT,
HORIZONTAL ANALYSIS, TREND
ANALYSIS

HUL

A common size statement is a type of financial statement analysis and

interpretation. This method analyses financial statements by
calculating each line item as a percentage of the base amount for that
accounting period. The percentage share of profit after tax is declining
year on year because of increase in tax expenses. There is increase in
non-current asset in FY 2021-22 because of increase in long term
investment. Debt is taken by the company for investment which lead
to increase in long term borrowings. There is a sudden increase in
current investment of 53% in FY 2019-20.
 TREND ANALYSIS

1100

950

800

650

500

350

200

50
2021-22 2020-21 2019-20 2018-19 2017-18

Sales PAT Fixed Assets MPS NIFTY

The financial data of an organisation is analyzed over time using trend

analysis. Periods can be measured in months, quarters, or years. The
primary goal of this study is to calculate and analyze the amounts and
percentage changes from one period to the next. I used 2017-18 as the
base year for the aforementioned study and set all of the base values
to 100. The average increase and decrease of those items over the
previous five years were then computed. From 2018-2022 sales
increased by 48%, net profit by 73%, fixed asset by 1035%. All of
these moved in same direction but at different pace. Asset utilization
improved in these five years. Market price of share increased by 54

DABUR
In financial statement analysis, horizontal analysis is used to compare
historical data, such as ratios or line items, over a number of
accounting periods. Horizontal analysis can employ either absolute or
percentage comparisons, with the numbers in each succeeding period
expressed as a percentage of the amount in the baseline year, with the
baseline amount listed as 100%. This is also referred to as base-year
analysis. There is a reduction in profit margin of a company in FY
2021-22 as percentage increase in sales, cogs, gross profit is almost
similar. There is 1375.23% increase in long term borrowing of a
company in FY2021-22.

A common size statement is a type of financial statement analysis and

interpretation. This method analyses financial statements by
calculating each line item as a percentage of the base amount for that
accounting period. The percentage share of profit after tax is declining
year on year because of increase in tax expenses. There is increase in
non-current asset in FY 2021-22 because of increase in long term
investment. Debt is taken by the company for investment which lead
to increase in long term borrowings. There is a sudden increase in
current investment of 53% in FY 2019-20.
The financial data of an organisation is analyzed over time using trend
analysis. Periods can be measured in months, quarters, or years. The
primary goal of this study is to calculate and analyze the amounts and
percentage changes from one period to the next. I used 2017 as the
base year for the aforementioned study and set all of the base values
to 100. The average increase and decrease of those items over the
previous five years were then computed. From 2018-2022 sales
increased by 45%, net profit by 33%, fixed asset by 47%. All of these
moved in same direction but at different pace. Asset utilization
improved in these five years. Market price of share increased by 67%.

NESTLE

For the six-month period that concluded on June 30, 2022, Nestlé
S.A. reported financial results. Sales for the first half of the year were
CHF 45,580 million, up from CHF 41,755 million in the same period
last year. Compared to CHF 5,945 million in the prior year, net
income was CHF 5,247 million. In comparison to CHF 2.12 a year
earlier, basic profits per share from continuing operations were CHF
1.92. Comparatively to CHF 2.12 a year earlier, diluted profits per
share from continuing operations were CHF 1.92.

Common Size Statement

Common Size Statement

70.00

60.00

50.00

40.00

30.00

20.00

10.00

0.00
1

Series1 Series2 Series3 Series4 Series5 Series6 Series7

Common size analysis displays each line item of your financial

statement as a percentage of a base figure to help you determine how
your company is performing year over year and compared to
competitors. It also shows the impact of each line item on the overall
revenue, cash flow, or asset figures for your company.
In nestle, profit before tax (PBT) measures the company’s
profitability that looking at the profits made before any tax is paid
here in the graph decreasing which means the company was less
profitable in 2021 in comparison to the year 2020.

Trend analysis

An organization's financial data is analysed over time using trend

analysis. Months, quarters, or years can be used to measure periods.
 Trend Analysis of HAL
300.00
revenue pat fixed assets MPS NIFTY

250.00

200.00

150.00

100.00

50.00

0.00
202203 202103 202003 201903 201803

Calculating and analysing the amounts and percent changes from one
period to the next is the major goal of this study. For the
aforementioned study, I used 2017 as the base year and set all of the
base values to 100. We then computed the average increase and
decrease of those items during the preceding five years. The first thing
we see is a sharp increase in PAT, which tells us the firm is doing
better. In terms of total revenue, we can also see that the firm has
steadily increased its profits, which gives us a general picture of how
to nestle is faring as a business. This improvement is also seen in the
company's MPS, which increased starting from 2017

ITC AGRO TECH

Common size statemen

Common Size State me nt

80

70

60

50

40

30

20

10

0
202203 202103 202003 201903 201803
-10

Series3 Series5 Series6 Series7 Series8 Series12

Common size analysis displays each line item of your financial
statement as a percentage of a base figure to help you determine how
your company is performing year over year and compared to
competitors. It also shows the impact of each line item on the overall
revenue, cash flow, or asset figures for your company.
In agro, profit before tax (PBT) measures the company’s profitability
that looking at the profits made before any tax is paid here in the
graph decreasing which means the company was less profitable in
2021 in comparison to the year 2020.

Trend Analysis:

Trend Analysis of Agro

190.0

170.0

150.0

130.0

110.0

90.0

70.0

50.0
201803 201903 202003 202103 202203

Sales PAT Fixed Assets MPS NIFTY

An organization's financial data is analysed over time using trend

analysis. Months, quarters, or years can be used to measure periods.
Calculating and analysing the amounts and percent changes from one
period to the next is the major goal of this study. For the
aforementioned study, I used 2017 as the base year and set all of the
base values to 100. We then computed the average increase and
decrease of those items during the preceding five years. The first thing
we see is a sharp increase in NIFTY, which tells us the firm is doing
better. In terms of total revenue, we can also see that the firm has
steadily increased its profits, which gives us a general picture of how
to Agro is faring as a business. This improvement is also seen in the
company's MPS, which increased starting from 2017

GODREJ CONSUMER PRODUCTS

From P/L statement common size we can see that comparing the last
five years there is a huge jump in cost of goods sold in current year
2022 , comparing to 2021 cogs was 2709.41 and in 2022 it is 3392 ,
which shows 47.92 percent increase in cogs . this shows the better
performance of the company.
Cost of material consumed has also shown a substantial growth from
the past years, comparing it with 2021 it was 2394 and in current year
2022 it is 3063.93 ,which shows change from 37.89% to 43.28% of
growth in 2022. this change in value shows growth of sales and
customers.
We can see the decrease of stock into the company from 2021 to
2022. The stock in trade in 2021 was 356 and in current year it is
325.
Gross profit of the company in has been consistent in the past 4 years
but the expense in 2021 has been increased as compared to the last
few years.

From the balance sheet we can see a decreasing trend in non current
asset (comparing from 2018 to 2021),whereas in current asset we can
see the growth and fall both , as there is fluctuation in the past years.
For the current situation there is increase in current asset(2022).
Common Size Statement

Common size analysis displays each line item of your financial

statement as a percentage of a base figure to help you determine how
your company is performing year over year and compared to
competitors. It also shows the impact of each line item on the overall
revenue, cash flow, or asset figures for your company.
In godrej consumer products ltd profit before tax (PBT) measures the
company’s profitability that looking at the profits made before any tax
is paid, we can see a decreasing trend in PBT in the year 2021 and
2020 which means the company was less profitable in 2021 in
comparison to the year 2020.

TREND ANALYSIS
Utilizing trend analysis, financial data for a company is examined
over time. Periods can be measured in weeks, months, or years. The
main objective of this study is to calculate and analyse the amounts
and percent changes from one period to the next. I took 2018 as the
foundation year and set all of the base values to 100 for the
aforementioned study. The average growth and decline of those goods
over the previous five years were then calculated. The increase in
sales over the last four years is evident. The upward direction of the
sales trend indicates potential business expansion.
In terms of total revenue, we can also see that the firm has steadily
increased its profits, which gives us a general picture of how godrej is
running its business.
we see a sharp increase in PAT, at value 132 which tells us the firm
is doing better. In terms of total revenue, we can also see that the firm
has steadily increased its profits, which gives us a general picture of
how godrej is running its business.

PROFITABILITY, LIQUIDITY, SOLVENCY,

ACTIVITY AND VALUATION RATIOS
HUL

LIQUIDITY RATIO
1.6

1.4

1.2

0.8

0.6

0.4

0.2

0
2021-22 2020-21 2019-20 2018-19 2017-18

CURRENT RATIO QUICK RATIO CASH RATIO

Liquidity ratios are a type of financial metric that assesses a debtor's

ability to repay current debt obligations without raising external
capital. Current ratio of Hul is below the ideal ratio of 2:1 in all the 5
year. It is between 1:1 and 2:1 which shows Hul might be safe as
does not show any major liquidity concern. Quick ratio of Hul is
around 11:1 in all the five years. The company has precisely enough
assets to pay off its current liabilities.
 PROFITABILTY RATIO
0.9

0.8

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0
2021-22 2020-21 2019-20 2018-19

GP MARGIN NET PROFIT MARGIN RoA

RoC RoE

Profitability ratios are a type of financial metric that is used to

evaluate a company's ability to generate earnings relative to its
revenue, operating costs, balance sheet, or shareholders' equity over
time, using data from a single point in time. Gross profit margin and
operating profit margin is almost similar in last 5 years with a small
variance. ROE of Dabur is above 25% which means company utilizes
shareholder fund effectively. While RoA decreases in 2021-22 it is
above the ideal value of 5%.

ACTIVITY RATIO
40

35

30

25

20

15

10

0
2021-22 2020-21 2019-20 2018-19

Inventory TO Ratio Receivables TO Ratio Creditors TO ratio

Activity ratios assess a company's operating efficiency by examining
fixed assets, inventories, and accounts receivable. It expresses a
company's financial health and indicates how the balance sheet
components are used. In 2021-22, Inventory turnover ratio decreases
as compared to past year. Still its inventory turnover is very high. Its
holding period is 50 days on an average in past 5 years. As there is
low creditor turnover ratio, it increases the liquidity of the company.
Net operating cycle of a company is in negative, It shows company is
highly liquid but it is decreasing year on year.

SOLVENCY RATIO
0.9

0.8

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0
2021-22 2020-21 2019-20 2018-19 2017-18

Long Term Debt/equity Long Term Debt/EBIDTA

A solvency ratio is a key metric used by prospective business lenders

to assess an enterprise's ability to meet its long-term debt obligations.
A solvency ratio determines whether a company's cash flow is
sufficient to cover its long-term liabilities and thus serves as a
measure of its financial health. An unfavourable ratio can indicate that
a company is likely to default on its debt obligations. Debt to asset
ratio is decreasing from past five years. It decreases suddenly in 2020-
21 because Hul had increased non-current assets by 608%. Total debt
of a company as compared to total asset is 29% of total asset in FY
2021-22. Debt to equity ratio is 0.42 in FY 2021-22. It decrease to
0.43 in FY 2020-21 from 1.42 in FY 2019-20 because of increase in
equity capital. Long term debt to EBITDA is increasing year on year
but it is below 1. These solvency ratio shows company can easily
meet its financial obligation.

VALUATION RATIO
80

70

60

50

40

30

20

10

0
2021-22 2020-21 2019-20 2018-19 2017-18

P/E ratio P/B P/S P/CFO

The financial process of determining the worth of a company is

known as valuation. Valuation ratios apply that knowledge to a
company's share price, making them useful tools for assessing
investment potential. P/E has declined because of decrease of market
price of share. P/B has decreased because of increase in asset

DABUR
Liquidity ratios are a type of financial metric that assesses a debtor's
ability to repay current debt obligations without raising external
capital. Current ratio of Dabur is below the ideal ratio of 2:1 in all the
year except in year 2020. Ratio 2:1 shows more stability and greater
stability. On the other hand, ratio between 1:1 and 2:1 might be safe
as does not show any major liquidity concern. Current ratio is
decreasing from past 3 years because there is increase in current
liabilities and decrease in current asset. Quick ratio of Dabur is
decreasing from past 3 year. Even it is below 1:1 in last 2 years. It
shows company do not have enough liquid assets to pay short term
loan in case of financial crisis.
Profitability ratios are a type of financial metric that is used to
evaluate a company's ability to generate earnings relative to its
revenue, operating costs, balance sheet assets, or shareholders' equity
over time, using data from a single point in time. Gross profit margin
and operating profit margin is almost similar in last 5 years with a
small variance. ROE of Dabur is above 25% which means company
utilizes shareholder fund effectively. While ROA decreases in 2021-
22 it is above the ideal value of 5%.
Activity ratios assess a company's operating efficiency by examining
fixed assets, inventories, and accounts receivable. It expresses a
company's financial health and indicates how the balance sheet
components are used. In 2021-22, inventory have been completely
sold 3.72 times in a year. Inventory turnover ratio is decreasing year
on year which leads to increase in inventory turnover ratio. In2021-
22, receivable turnover ratio is 22.23. It is improving year on year. As
there is high receivable turnover ratio and low creditor turnover ratio,
it increases the liquidity of the company. Net operating cycle of a
company is in negative, It shows company is highly liquid. It is
increasing year on year.
A solvency ratio is a key metric used by prospective business lenders
to assess an enterprise's ability to meet its long-term debt obligations.
A solvency ratio determines whether a company's cash flow is
sufficient to cover its long-term liabilities and thus serves as a
measure of its financial health. An unfavourable ratio can indicate that
a company is likely to default on its debt obligations. Debt to asset
ratio is increased to 0.32 in FY 2021-22 from 0.28 in FY 2020-21. It
is below 1 which is relatively safe. Total debt of a company as
compared to total asset is 32% of total asset. Debt to equity ratio is
0.47 in FY 2021-22. It is increasing from past 3 years still equity is
above 50%. The interest coverage ratio of Dabur is very high in FY
2020-21 because interest amount decreases significantly. Over all
interest coverage ratio of Dabur is good. Long term debt to equity and
long term debt to EBITDA is increasing from 3 year but it is very
low. These solvency ratio shows company can easily meet its
financial obligation.
The financial process of determining the worth of a company is
known as valuation. Valuation ratios apply that knowledge to a
company's share price, making them useful tools for assessing
investment potential. There is increase in EPS, sales, book value of a
company but there is no change in market price.

NESTLE

Liquidity ratio
 Liquidity Ratios
Receviable Turnover Current ratio Quick ratio cash ratio
40.00

35.00

30.00

25.00

20.00

15.00

10.00

5.00

0.00
202203 202103 202003 201903 201803

A company's ability to settle its immediate debts with its

present assets is gauged by its liquidity ratio. The greatest
Receivables turnover ratio may be seen in Nestle’s liquidity
ratios, indicating that the firm is cautious about giving
customers credit and runs on a cash basis. The company’s
collecting tactics are effective or aggressive. The graph also
shows that Throughout the fiscal year 2020, the current ratio
and the quick ratio both climbed from 0.39 to 0.66.
Following that year, the current ratio declined to 0.9 in
FY2022, while the quick ratio decreased to 0.56 and then
0.48 of current ratio during the following fiscal years

Profitability Ratio
 Profi ti bility Rati os
60%

50%

40%

30%

20%

10%

0%
202203 202103 202003 201903 201803

GP Margin Operating profit Margin Net profit margin Operating ROA

ROA ROC ROE

Using the information at a single moment in time, profitability ratios

are a class of financial measurements that are used to evaluate a
company's capacity to make profits in relation to its revenue,
operating costs, balance sheet assets, or shareholders' equity over
time.
We can see from the graph above that the company's GP margin is
higher. A high GP margin shows that the business is effectively
generating profit above and above its costs. The fact that Nestle was
able to keep its ROE at 26% over the course of five years shows that
the firm is effective in using its shareholders' funds to produce profits
and can provide a 18% return on its investment.

Activity Ratio
 ACTIVITY RATIOS
60.00

50.00

40.00

30.00

20.00

10.00

0.00
202203 202103 202003 201903 201803

Inventory turnover ratio Inventory holding period Debtors TO Debtors collection Period
Creditors TO Creditors payment period Fixed asset TO ratio

An activity ratio is a type of financial metric that indicates how

efficiently a company is leveraging the assets on its balance sheet, to
generate revenues and cash.
From the above graph, we get a view that Nestle has gradually
improved its payment period another positive aspect of the company
is that its inventory holding period is minimum which gives us an idea
that the company holds its assets for a minimum period of time.

Solvency Ratio
 SOLVENCY RATIOS
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
202203 202103 202003 201903 201803

Total Debt to assests ratio Debt to Equity Financial leverage ratio Debt to EBIDTA
Interest Coverage ratio Long term debt to EBIDTA Long term debt to Equity

The solvency ratio is a key metric used to measure an enterprise's

ability to meet its long-term debt obligations and is used often by
prospective business lenders. A solvency ratio indicates whether a
company's cash flow is sufficient to meet its long-term liabilities and
thus is a measure of its financial health.
A high-interest coverage ratio means the company is more poised to
pay its debts. A lower value in this ratio would suggest that the
company is not poised for growth and may seem unattractive to
investors. For 2022 Nestle’s interest coverage ratio stands at 14.38
percent we can say that it had not improved its ratio from the previous
financial year and was not able to attract more investors.

Valuation Ratio
 VALUATION RATIOS

300.00

250.00

200.00

150.00

100.00

50.00

0.00
202203 202103 202003 201903 201803

P/E ratio P/B P/S P/CFO

The context of a company's share price is provided by valuation

ratios, which act as helpful instruments for assessing investment
possibilities.
As can be seen in the graph above, in 2020 the price-to-cash flow
ratio was low, showing that the stock value was improving.
Gradually, P/CFO increased, signaling that the company's stock price
was too high and that insufficient cash flow was being produced to
maintain it.

ITC AGRO TECH

Liquidity ratio :
 Liquidity Ratios
2.5

1.5

0.5

0
201803 201903 202003 202103 202203

Current Ratio Quick ratio Cash Ratio

A company's ability to settle its immediate debts with its

present assets is gauged by its liquidity ratio. The greatest
Receivables turnover ratio may be seen in Agro’s liquidity
ratios, indicating that the firm is cautious about giving
customers credit and runs on a cash basis. The company’s
collecting tactics are effective or aggressive. The graph also
shows that Throughout the fiscal year 2020, the current ratio
and the quick ratio both have reduced. Following that year,
the current ratio declined to 1.5 in FY2022, while the quick
ratio decreased to 0.15 and then 0.5 of current ratio during
the following fiscal years.

Profitability Ratio
 Profitability Analysis
GP Margin Net Profit Margin Return on Assets Return on Capital Return on Equity
35.0%

30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%
201903 202003 202103 202203

Using the information at a single moment in time, profitability ratios

are a class of financial measurements that are used to evaluate a
company's capacity to make profits in relation to its revenue,
operating costs, balance sheet assets, or shareholders' equity over
time.
We can see from the graph above that the company's GP margin is
higher. A high GP margin shows that the business is effectively
generating profit above and above its costs. The fact that Agro was
able to keep its ROE at 5% over the course of five years shows that
the firm is effective in using its shareholders' funds to produce profits
Activity Ratio:
Activity Ratios
6.8

6.6

6.4

6.2

6.0

5.8

5.6

5.4
201903 202003 202103 202203

Inventory TO Ratio Receivables TO Ratio Creditors TO ratio

An activity ratio is a type of financial metric that indicates how
efficiently a company is leveraging the assets on its balance sheet, to
generate revenues and cash.
From the above graph, we get a view that Agro has gradually
improved its payment period another positive aspect of the company
is that its inventory holding period is minimum which gives us an idea
that the company holds its assets for a minimum period of time.

Solvency ratio:

Solvency ratio
0.30

0.25

0.20

0.15

0.10

0.05

0.00
201903 202003 202103 202203

Long Term Debt/equity Long Term Debt/EBIDTA

The solvency ratio is a key metric used to measure an enterprise's

ability to meet its long-term debt obligations and is used often by
prospective business lenders. A solvency ratio indicates whether a
company's cash flow is sufficient to meet its long-term liabilities and
thus is a measure of its financial health.
A high-interest coverage ratio means the company is more poised to
pay its debts. A lower value in this ratio would suggest that the
company is not poised for growth and may seem unattractive to
investors.

Valuation Ratio
 Valuation Ratios
100.0

80.0

60.0

40.0

20.0

0.0
201903 202003 202103 202203
-20.0

-40.0

-60.0

-80.0

P/E ratio P/B P/S P/CFO

The context of a company's share price is provided by valuation

ratios, which act as helpful instruments for assessing investment
possibilities.
As can be seen in the graph above, in 2020 the price-to-cash flow
ratio was low, showing that the stock value was improving.
Gradually, P/CFO decreased, signaling that the company's stock price
was is not high and that sufficient cash flow was being produced to
maintain it.

GODREJ CONSUMER PRODUCTS

Liquidity ratio
A company's ability to settle its immediate debts with its
present assets is gauged by its liquidity ratio. The greatest
Receivables turnover ratio may be seen in Godrej consumer,
liquidity ratios indicating that the firm is cautious about
giving customers credit and runs on a cash basis. The
company’s collecting tactics are effective or aggressive. The
graph also shows that Throughout the fiscal year 2020, the
current ratio and the cash ratio both climbed from 1.56 to
2.65. Following that year, the quick ratio increased to1.81 in
2022 from0.09 in 2021 .

Profitability Ratio
Using the information at a single moment in time, profitability ratios
are a class of financial measurements that are used to evaluate a
company's capacity to make profits in relation to its revenue,
operating costs, balance sheet assets, or shareholders' equity over
time.
We can see from the graph above that the company's GP margin was
more in 2021 as compared to 2022t, this shows the company is ynable
to maintain the growth rate of company.A high GP margin shows that
the business is effectively generating profit above and above its costs,
which in godrej cas is not upto the mark. The fact that godrej ROE is
more than 60% over the course of five years shows that the firm is
ineffective in using its shareholders' funds and the change in return on
investment from 2020 to 2021 is 35% to 33%.

Activity Ratio
An activity ratio is a type of financial metric that indicates how
efficiently a company is leveraging the assets on its balance sheet, to
generate revenues and cash.
After estimation of all the activity ratio of the company for the past 4
years we can see a positive growth of the company in terms of
payment period and also the inventory holding period is gradually
decreasing by each passing year which build trust in minds of
consumer.

Solvency Ratio
Prospective business lenders frequently use the solvency ratio as a
critical statistic to assess a company's capacity to repay long-term
loans. A company's financial health can be assessed by looking at its
solvency ratio, which determines if its cash flow is sufficient to cover
its long-term obligations.
A high-interest coverage ratio means the company is more poised to
pay its debts. A lower value in this ratio would suggest that the
company is not poised for growth and may seem unattractive to
investors. For 2022 Godrej interest coverage ratio stands at 11 percent
we can say that it has improved its ratio from the previous financial
year and is able to attract more investors.

Valuation Ratio

The context of a company's share price is provided by valuation

ratios, which act as helpful instruments for assessing investment
possibilities.
As can be seen in the graph above, in 2020 and we can see p/e ratio
was low in 2019 and then increased in 2021 which was not a good
sign but now in the current year 2022 the p/e ratio is decreased as
compared to 2021 which is a good sign for potential investors and
business.
 DU POND ANALYSIS

HUL

The DuPont analysis framework, popularised by the DuPont

Corporation, is a framework for analysing fundamental performance
that is now widely used to compare the operational efficiency of two
similar firms. ROE has decreased significantly in last two years
because of the increase in assests in financial year 2020-21 and there
is increase in shareholder fund in past two years.

DABUR
The DuPont analysis framework is a framework for analysing
fundamental performance that is now widely used to compare the
operational efficiency of two similar firms. There is decrease ROE in
last 4 years. Furthermore, we can see that Dabur EBIT margin is low,
indicating that the company's operational expenses exceed total
revenue, which is acceptable given the nature of the industry.
Furthermore, we can see that the EBIT margin has remained nearly
unchanged over the last five years, implying that the company's costs
have remained mostly constant

NESTLE
 3 POINT DU PONT
1.20

1.00

0.80

0.60

0.40

0.20

0.00
202203 202103 202003 201903 201803

Tax Burden Interest Burden EBIT Margin

The DuPont Corporation popularised the DuPont analysis, a paradigm

for evaluating basic performance. DuPont analysis is a practical
method for breaking down the various factors that affect the return on
equity (ROE).
The interest load that the business owes to its creditors is displayed in
the DuPont graph above. Additionally, we can see that Nestle’s EBIT
margin is low, which tells us that the company's operational
expenditures are greater than its total revenue, which is acceptable
given the nature of the industry. Additionally, we see that the EBIT
margin has been almost unchanged over the last five years, which
suggests that the company's costs have remained mostly constant.

ITC AGRO TECH

 3 Point Du Pont Analysis
0.10 2.50
0.09
0.08 2.00
0.07
0.06 1.50
0.05
0.04 1.00
0.03
0.02 0.50
0.01
0.00 0.00
201903 202003 202103 202203

Financial Leverage (Asset/Net Worth) Asset TO ratio (Revenue/Total Assets)

ROE Net Profit margin(PAT/Sales)

The DuPont Corporation popularised the DuPont analysis, a paradigm

for evaluating basic performance. DuPont analysis is a practical
method for breaking down the various factors that affect the return on
equity (ROE).
The interest load that the business owes to its creditors is displayed in
the DuPont graph above. Additionally, we can see that Agro EBIT
margin is low, which tells us that the company's operational
expenditures are greater than its total revenue, which is acceptable
given the nature of the industry. Additionally, we see that the EBIT
margin has been almost unchanged over the last five years, which
suggests that the company's costs have remained mostly constant.

GODREJ CONSUMER PRODUCTS

The DuPont Corporation popularised the DuPont analysis, a paradigm
for evaluating basic performance. DuPont analysis is a practical
method for breaking down the various factors that affect the return on
equity (ROE).The interest load that the business owes to its creditors
is displayed in the DuPont graph above. We can see that net profit
margin is same in bothe the years i.e 2021 and 2022.Additionally, we
can see that godrej consumer’s interest burden and tax burden has
increased over the past years.

NESTLE GODREJ DABUR HUL AGRO

ROE 0.22 0.39 0.25 0.18 0.06
FINANCIAL LEVERAGE 2.97 1.16 1.43 1.43 1.17
NET PROFIT MARGIN 12% 39% 17% 17% 3%
ASSET TURNOVER
1.92 0.86 1.06 0.75 1.76
RATIO

The ROE of Godrej higher than its peer company. Also, profit margin
of Godrej is highest while asset turnover ratio of Nestle is better. But
the Godrej has low financial leverage Godrej has better financials then
Nestle and other companies.
 CASH FLOW STATEMENT

HUL

The term "cash flow analysis" refers to the investigation or analysis of

the various cash inflows into the business and cash outflows from the
business during the time under review from the various activities,
including operational operations, investing activities, and financing
activities. There is increase in cash from operating activities in last
year year on year whereas it is in negative value for investing
activities and financing activities.

DABUR
The cash flow analysis refers to the analysis of the various cash
inflows into the business and cash outflows from the business during
the time under review from the various activities, including
operational operations, investing activities, and financing activities.
Only cash from operating activities is in positive. It is increasing till
FY 2020-21. Decrease in current assests and increase in interest lead
to decrease in current assets. Investing activities is positive only in
2018-19. It is negative in remaining four year because of purchase of
investment and fixed assests. Cash from financing activities is in
negative because of dividend paid to shareholders by the company but
it is improving.

NESTLE
 CASH FLOW
3,000.00

2,000.00

1,000.00

0.00
202203 202103 202003 201903 201803
-1,000.00

-2,000.00

-3,000.00

-4,000.00

Net Cash from Operating Activities Net Cash Used in Investing Activities
Net Cash Used in Financing Activities

The term "cash flow analysis" refers to the investigation or analysis of

the various cash inflows into the business and cash outflows from the
business during the time under review from the various activities,
including operational operations, investing activities, and financing
activities.
We can get a full study of NESTLE cash flow statement for a period
of five years from the above diagram. Up until 2020, net cash from
operational operations showed a slight decline before rapidly
increasing and reaching its peak in 2021. The fate of cash utilized for
investing operations was entirely different; it began with a positive
value in 2018 before declining in 2020, which leads us to believe that
the corporation may be spending its funds on long-term growth and
development. A decrease in net cash used in financing operations
from 2018 to 2020 and a further decline from 2020 to 2022 show that
the firm has made capital payments, such as retiring or paying down
long-term debt or paying dividends to shareholders.

ITC AGRO TECH

The phrase "cash flow analysis" describes an inquiry or study of the
numerous cash inflows into the firm and cash outflows from the
business throughout the review period from diverse activities,
including operational operations, investment activities, and financing
activities.
From the preceding figure, we can obtain a thorough analysis of
Agro’s cash flow statement for a five-year period. Net cash from
operating activities showed a little drop up to 2020, then increased
quickly and peaked in 2021. A completely different outcome occurred
for cash used for investment activities; it started out positively in 2018
before going downhill in 2020, which makes us think that the
company may be investing its funds in long-term growth and
development.

GODREJ CONSUMER PRODUCTS

The phrase "cash flow analysis" describes an inquiry or study of the

numerous cash inflows into the firm and cash outflows from the
business throughout the review period from diverse activities,
including operational operations, investment activities, and financing
activities.
From the data , we can obtain a comprehensive analysis of Godrej
Consumer Product Ltd.'s cash flow statement for a five-year period.
Net cash from operating activities showed a little drop up to 2020,
then increased quickly and peaked in 2021. The outcome of cash used
for investing activities was completely different; it started off with a
positive number in 2018 before dropping in 2020, which makes us
think that the company may be using its finances for long-term
investments.
 THE STEPS TAKEN BY THE COMPANY
TOWARDS SUSTAINABILITY DEVELOPMENT

HUL

At Unilever, everyone works toward the same goal: to normalise

sustainable living. Our goal is to create a better future where
companies care for the environment, society, and the entire
planet.

They wish to expand the company's capabilities beyond what

they are now and investigate ways to stop the global
environmental issue. To attain net-zero emissions, protect and
regenerate environment, and practise sustainable waste
management are some of the ways we accomplish this. In
addition, they work to promote fairness and social justice within
our organisations and outside. They are building a society in
which everyone is treated fairly, regardless of their background.
They want the next generation to live in a world where
civilization and the environment coexist together.

DABUR

1. Preserving herb species that are in danger of extinction and

improving farmer livelihoods
Dabur has been attempting to preserve plant and herb species
that are in danger of extinction. It has implemented a wide range
of initiatives across India to improve local farmers' quality of
life while also protecting endangered medicinal and fragrant
plants.
2. Support for Solar Energy
 Dabur has started a project to give people access to high-quality,
reasonably priced solar solutions for their everyday needs. We
give the homeowners solar lamps as part of this. These lamps
may be utilised throughout the night by the household and only
need 8 hours of solar light to charge. In these areas, we are also
putting in solar street lighting.

In the first stage, we gave solar lamps to 7 Ghaziabad villages.

among them.

Our CSR Vision

Ensure community engagement through sustainable measures
and actively contribute to the social, economic, and
environmental development of the area in which we operate to
add value for the country.

Mission of Our CSR

Assuring the socioeconomic development of the neighbourhood
through a variety of inclusive and need-based initiatives is in the
best interests of the underprivileged and poorer segments of
society in order to assist them in becoming SELF-RELIANT
and creating a better future for themselves.
ensuring ecological sustainability through encouraging
biodiversity, protecting and regrowing endangered plant species,
and conserving and regenerating the ecosystem.

NESTLE

1. Promoting nutrition and health

Our wide-ranging portfolio as a food company with a presence

in many countries includes everything from drinks and meal
solutions to confections and healthcare nutrition items. We
 make use of our years of experience and R&D know-how to
provide healthy, affordable, sustainable nourishment for people
worldwide and at all phases of life.

We are dedicated to creating items that are both beneficial for

you and the environment.

2. Climate action

The threat presented by climate change is significant and getting

worse. Nestlé is making significant efforts to minimize its
carbon footprint and reach net zero at the latest by 2050.

We adopt a comprehensive strategy for reducing our

environmental effect, connecting the links between climate
change and related concerns like water management,
biodiversity, and human rights.

3. Protecting nature

We understand the intricate relationship between food

systems, the planet's resources, and our future.

Since almost every raw item we use has some connection to

nature, protecting the environment is not only crucial for the
health of the globe but also for our company's bottom line. For
this reason, by 2030, we want to acquire 50% of our
components using regenerative agriculture practices.

4. Water stewardship
 Water is essential to all life and has a strong connection to
regrowth. We appreciate our part in making sure everyone has
access to enough clean water since we depend on it.

Local water management strategies can help communities and

farmers where they are most in need while also potentially
having a positive impact on the natural water cycles.

5. Human rights

Our joint future is fundamentally connected to human rights.

We are laying a foundation for a sustainable future for our
planet and its inhabitants by respecting and promoting them in
our value chain.

We have the stature, scope, and influence to influence others

and propel group action. Our primary goal is to change farming
methods at the core of the food system while facilitating a
reasonable and equitable transition. The principles and culture
of Nestlé are centered on people and respect for human rights.
Across our value chain, we are dedicated to increasing
awareness, encouraging best practices, and empowering people.

6. performance and reporting

At Nestlé, our business practices are ingrained with an

emphasis on open, transparent reporting of our actions,
promises, and results.

In addition to publishing further information in our Creating

Shared Value and Sustainability Report and our Climate Risk
and Impact Report, we also give a summary of our strategy and
performance on key subjects in our annual review.
 ITC AGRO TECH

Agro Tech Foods has continually worked to improve society as a

good corporate citizen by focusing on child malnutrition, which is a
problem that is pervasive in India, and by using the company's
resources to build a healthier India.
In addressing societal issues like malnourishment, the company helps
the community. As producers of nutritious commodities like peanut
butter and other foods in the food industry, the company is convinced
that we have a unique chance to contribute significantly to the fight
against malnourishment, one of the most pressing social problems in
the world.
The company has launched a program called Poshan, and as part of
this initiative, the government and the company continue to work
together to deliver peanut butter to government-run Anganwadis and
Child Malnutrition Treatment Centers. The meal provided to children
in anganwadis is supplemented by peanut butter, which is high in
high-quality protein. The Bharuch district of Gujarat, where our
production for peanut butter is located, will be a major priority region
for the implementation of this programme. In addition to Gujarat,
where our offices and factories are located, the programme is also
being implemented in Delhi, Hyderabad, Kashipur, and Kolkata.
 GODREJ CONSUMER PRODUCTS

For over 125 years godrej group has championed social

responsibility!!
 23% of the promoter holdings
in the Group is held in trusts
that invest in education,
environment and health.
 Creating a more inclusive
and greener planet through
Godrej Good & Green
 Aligned with the UN's
Sustainable Development
Goals, and the needs of
local communities.
1- Empowering 1.20 lakh women with beauty skills in
emerging economies.
2- Strengthen health care system in 3 states in india.
3- Protect 10 million people from vector borne diseases.
4- Ensure one-third of all our products are greener than in
2020
5- Cover 75% of our suppliers in India (by procurement
spends) and 50% of those in our other geographies
under our Sustainable Procurement Policy
6- Partner with consumers and customers to promote
sustainable consumption of our green products
7- Ensure efficient waste management systems for 3
municipalities in India impacting 3 million people.
8- Achieve Scopes 1 and 2 carbon neutrality
9- Improve energy efficiency, in line with our EP100
commitment
10- Achieve 35% renewables in energy mix
11- Maintain water positivity, achieve and maintain zero
waste to landfill
12- Announce our commitment towards the global
Science Based Targets initiative (SBTi) and publish our
roadmap and targets for emissions reduction
13- Increase transparency in our ESG reporting and
disclosures, reaffirming our commitment to
sustainability
14- Advance human rights and inclusion across our
value chain