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A

ASSIGNMENT ON FINANCEICAL ANALYSIS


OF

Submitted to:

Submitted by:

Pooja Malhotra(HOD)
GIMT KURUKSHETRA

Sandeep Thakur & Narendra Kajal


M.B.A. 1st YEAR

DEPARTMENT OF BUSINESS MANAGEMENT


GEETA INSTITUTE OF MANAGEMENT AND TECHNOLOGY, KANIPLA, KURUKSHETRA

Table of Content
Sl. No
1.
2.
3.
4.
5.
6.
7.

Particulars

Page No.

History and Evolution2


Diagram..3
Introduction of company3
Company Infrastructure..4
Production process...5 to 8
Silo Bag .9
How does help this information in Marketing9

Introduction
ITC started its journey long back in 1910 under the name of Imperial Tobacco
Company of India Limited. During the first few decades of its operation the focus
of the company revolved around Cigarettes and Leaf Tobacco businesses. But during
the seventies the company ventured into different businesses including hotels and
paperboards. During the nineties the company started Agri Business Division and
the new millennium saw ITC venturing into Greetings Card, Lifestyle Retailing,
Information Technology, Packaged Food, Matches, Agarbattis (incense sticks) and
many more. In the last few years ITC expanded its portfolio to include snacks and
personal care products as well. So, over the years the company has become a truly
diversified business house with interests spanning across industries. We included
ITC in this document as being a FMCG leader but our basic objective is to study the
marketing and advertising in Indian context so along with FMCG, we will analyse
the other business in which ITC has key presence. The ITC financial statements
divide its business into four main categories which are shown in below diagram:

Though ITC has interests in so many diverse businesses cigarettes has been the main money
earner for the company till date. In 2008 Cigarettes alone contributed more than 85% of
companys profit after tax.

Fact File
Founded 24 August 1910 Mission To enhance the wealth generating capability of the enterprise
in a globalising environment, delivering superior and sustainable stakeholder value. Positioning
statement Enduring Value. For the nation. For the Shareholder. Gross Turnover (2007-08) Rs. 2

1356 Crore Profit After Tax (2007-08) Rs. 3120 Crore Number of Employees
25,000+ Logo Tag Line ITC. Touching your life. Evevryday. Chairman Y C Deveshwar
Headquarters Kolkata, India Website www.itcportal.com
Founded

24 August 1910

Mission

To enhance the wealth generating capability of the enterprise in a globalising


environment, delivering superior and sustainable stakeholder value.

Positioning statement

Enduring Value. For the nation. For the Shareholder.

Gross Turnover (200708)

Rs. 21356 Crore

Profit After Tax (200708)

Rs. 3120 Crore

Number of Employees

25,000+

Logo

Tag Line

ITC. Touching your life. Evevryday.

Chairman

Y C Deveshwar

Headquarters

Kolkata, India

Website

www.itcportal.com

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

Standalone Balance Sheet of ITC


Balance Sheet

------------------- in Rs. Cr. ------------------Mar '11


12 mths

Mar '10
12 mths

Mar '09
12 mths

Mar '08
12 mths

773.81
773.81
0.00
0.00
15,126.2
53.34
15,953.7
1.94
97.26
99.20
16,052.7

381.82
381.82
0.00
0.00
13,628.17
54.39
14,064.38
0.00
107.71
107.71
14,172.09

377.44
377.44
0.00
0.00
13,302.55
55.09
13,735.08
11.63
165.92
177.55
13,912.63

376.86
376.86
0.00
0.00
11,624.69
56.12
12,057.67
5.57
208.86
214.43
12,272.10

Mar '11
12 mths

Mar '10
12 mths

Mar '09
12 mths

Mar '08
12 mths

12,765.2
4,420.75
8,345.07
1,333.40
5,554.66
5,267.53
907.62
98.77

11,967.86
3,825.46
8,142.40
1,008.99
5,726.87
4,549.07
858.80
120.16

10,558.65
3,286.74
7,271.91
1,214.06
2,837.75
4,599.72
668.67
68.73

8,959.70
2,790.87
6,168.83
1,126.82
2,934.55
4,050.52
736.93
153.34

Sources Of Funds
Total Share Capital
Equity Share Capital
Share Application Money
Preference Share Capital
Reserves
Revaluation Reserves
Networth
Secured Loans
Unsecured Loans
Total Debt
Total Liabilities

Application Of Funds
Gross Block
Less: Accum. Depreciation
Net Block
Capital Work in Progress
Investments
Inventories
Sundry Debtors
Cash and Bank Balance

Total Current Assets


Loans and Advances
Fixed Deposits
Total CA, Loans & Advances
Deffered Credit
Current Liabilities
Provisions

6,273.92
2,173.89
2,144.47
10,592.8
0.00
5,668.10
4,104.84

5,528.03
1,929.16
1,006.12
8,463.31
0.00
4,619.54
4,549.94

5,337.12
2,150.21
963.66
8,450.99
0.00
4,121.59
1,740.49

4,940.79
1,949.29
416.91
7,306.99
0.00
3,619.76
1,645.33

Total CL & Provisions


Net Current Assets
Miscellaneous Expenses

9,772.94
819.34
0.00
16,052.7
251.78
20.55

9,169.48
-706.17
0.00
14,172.09
258.73
36.69

5,862.08
2,588.91
0.00
13,912.63
261.36
36.24

5,265.09
2,041.90
0.00
12,272.10
308.08
31.85

Total Assets
Contingent Liabilities
Book Value (Rs)

Consolidated Balance Sheet of ITC


Balance Sheet of
Mar '11
12 mths

------------------- in Rs. Cr. ------------------Mar '10


Mar '09
Mar '08
12 mths
12 mths
12 mths

Sources Of Funds
Total Share Capital
Equity Share Capital
Share Application Money
Preference Share Capital
Init. Contribution Settler
Preference Share Application Money
Employee Stock Opiton
Reserves
Revaluation Reserves
Networth
Secured Loans
Unsecured Loans
Total Debt
Minority Interest
Policy Holders Funds
Group Share in Joint Venture

Total Liabilities

773.81
777
0.00
0.00
0.00
0.00
0.00
15,567.4
102.51
16,443.6
25.09
99.48
124.57
140.82
0.00
31.82
16,567.3

381.82
0.00
0.00
0.00
0.00
0.00
13,999.37
59.22
14,440.41
0.95
109.82
110.77
126.38
0.00
27.70
14,551.18

377.44
377.44
0.00
0.00
0.00
0.00
0.00
13,569.61
60.00
14,007.05
18.85
167.81
186.66
129.96
0.00
35.52
14,193.71

376.86
376.86
0.00
0.00
0.00
0.00
0.00
11,822.52
61.13
12,260.51
14.99
209.92
224.91
113.21
0.00
38.59
12,485.42

Mar '11
12 mths

Mar '10
12 mths

Mar '09
12 mths

Mar '08
12 mths

13,929.21
4,843.95
9,085.26
1,367.95

12,974.91
4,218.72
8,756.19
1,023.58

11,513.40
3,667.97
7,845.43
1,243.12

9,784.05
3,156.73
6,627.32
1,573.67

4,867.84

4,996.51

2,507.07

2,585.07

Application Of Funds
Gross Block
Less: Accum. Depreciation
Net Block
Capital Work in Progress

Investments

Inventories
Sundry Debtors
Cash and Bank Balance
Total Current Assets
Loans and Advances
Fixed Deposits
Total CA, Loans & Advances
Deffered Credit
Current Liabilities
Provisions
Total CL & Provisions
Net Current Assets
Minority Interest
Group Share in Joint Venture
Miscellaneous Expenses

Total Assets
Contingent Liabilities
Book Value (Rs)

5,720.00
1,099.75
197.38
7,017.13
1,702.64
2,227.65
10,947.42
0.00
5,458.17
4,156.65
9,614.82
1,332.60
0.00
86.81
0.11
16,653.76
340.87
21.12

5,079.98
1,007.44
265.48
6,352.90
1,548.07
1,082.03
8,983.00
0.00
4,508.18
4,586.48
9,094.66
-111.66
0.00
40.43
0.21
14,664.83
315.14
37.67

4,782.58
798.18
288.31
5,869.07
1,591.35
1,028.79
8,489.21
0.00
4,061.18
1,724.92
5,786.10
2,703.11
0.00
60.14
0.32
14,299.05
317.24
36.95

4,263.00
869.46
254.54
5,387.00
1,284.80
521.16
7,192.96
0.00
3,801.23
1,620.98
5,422.21
1,770.75
0.00
79.99
0.42
12,557.23
476.32
32.37

Standalone
Cash Flow of ITC
Net Profit Before Tax
Net Cash From Operating Activities
Net Cash (used in)/from
Investing Activities
Net Cash (used in)/from Financing Activities
Net (decrease)/increase In Cash and Cash
Equivalents
Opening Cash & Cash Equivalents
Closing Cash & Cash Equivalents

------------------- in Rs. Cr. ------------------Mar '11


12 mths
7268.16
5264.24

Mar '10
12 mths
6015.31
4630.65

Mar '09
12 mths
4825.74
3279.03

Mar '08
12 mths
4571.77
2722.96

-616.22

-3531.56

-1260.74

-1736.78

-3551.64

-1009.86

-1556.15

-1316.09

1096.38

89.23

462.14

-329.91

1082.93
2179.31

993.70
1082.93

570.25
1032.39

900.16
570.25

Consolidated
Consolidated Cash Flow of ITC
Net Profit Before Tax
Net Cash From Operating Activities
Net Cash (used in)/from
Investing Activities
Net Cash (used in)/from Financing Activities
Net (decrease)/increase In Cash and Cash
Equivalents
Opening Cash & Cash Equivalents
Closing Cash & Cash Equivalents

------------------- in Rs. Cr. ------------------Mar '11


12 mths
7434.87
5453.57

Mar '10
12 mths
6245.71
4443.04

Mar '09
12 mths
4984.76
3533.50

Mar '08
12 mths
4675.18
3006.69

-816.17

-3346.35

-1405.64

-1968.14

-3579.74

-1070.13

-1592.96

-1349.22

1057.66

26.56

534.90

-310.67

1305.00
2362.66

1278.44
1305.00

783.41
1318.31

1087.49
776.82

Key Financial Ratios of ITC


Mar'11

Mar '10

Mar '09

Mar '08

1.00
4.45
9.30
27.29

1.00
10.00
16.06
48.63

1.00
3.70
13.04
39.70

1.00
3.50
11.76
37.23

34.08
30.05
30.97
25.17
22.91

33.02
28.97
29.74
23.98
21.30

32.84
28.37
29.17
24.22
21.18

31.57
27.50
28.44
23.45
21.50

Investment Valuation Ratios


Face Value
Dividend Per Share
Operating Profit Per Share (Rs)
Net Operating Profit Per Share (Rs)

Profitability Ratios
Operating Profit Margin(%)
Profit Before Interest And Tax Margin(%)
Gross Profit Margin(%)
Cash Profit Margin(%)
Net Profit Margin(%)

Liquidity And Solvency Ratios


Current Ratio
Quick Ratio
Debt Equity Ratio
Long Term Debt Equity Ratio

1.08
0.50
0.01
0.01

Debt Coverage Ratios


Interest Cover
Total Debt to Owners Fund
Financial Charges Coverage Ratio

123.30
0.01
100.46

Management Efficiency Ratios


Inventory Turnover Ratio
Debtors Turnover Ratio
Investments Turnover Ratio

6.05
23.91
6.05

Fixed Assets Turnover Ratio

1.69

Total Assets Turnover Ratio


Asset Turnover Ratio

1.34
1.69

Number of Days In Working Capital


Profit & Loss Account Ratios

13.97

Earnings Per Share


Book Value

Mar '11
6.45
20.55

Company Facts ITC

Registered Address
Virginia House,
37, Jawaharlal Nehru Road,
Kolkata
West Bengal
700071
Tel: 033-22889371 033-22886426
Fax: 033-22882358
Email: isc@itc.in
Website: http://www.itcportal.com
Group: MNC Associate

Registrars

Management - ITC

Name
Yogesh Chander Deveshwar
Pradeep Vasant Dhobale
Anil Baijal
Angara Venkata Girija Kumar
Sunil Behari Mathur
Hugo Geoffrey Powell
Anthony Ruys
Krishnamoorthy Vaidyanath
Name
Nakul Anand
Kurush Noshir Grant
Shilabhadra Banerjee
Serajul Haq Khan
Dinesh Kumar Mehrotra
Pillappakkam Bahukutumbi Ramanujam
Basudeb Sen
Balakrishnan Vijayaraghavan

Designation
Chairman / Chair Person
Executive Director
Non Executive Director
Non Executive Director
Non Executive Director
Non Executive Director
Non Executive Director
Non Executive Director
Designation
Executive Director
Executive Director
Non Executive Director
Non Executive Director
Non Executive Director
Non Executive Director
Non Executive Director
Non Executive Director