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Nestlé with headquarters in Vevey, Switzerland was founded in 1866 by
Henri Nestlé and is today the world's leading nutrition, health and
wellness company. Sales for 2008 were CHF 109.9 bn, with a net profit of
CHF 18.0 bn. We employ around 283 000 people and have factories or
operations in almost every country in the world.
The Company's strategy is guided by several fundamental principles.
Nestlé's existing products grow through innovation and renovation while
maintaining a balance in geographic activities and product lines. Long-term
potential is never sacrificed for short-term performance. The Company's
priority is to bring the best and most relevant products to people, wherever
they are, whatever their needs, throughout their lives.
The Nestlé Addresses navigation at the top of this page will give you access
to Nestlé offices and websites around the world. We demonstrate through
our way of doing business in all the countries where we are present a deep
understanding of the local nature of nutrition, health and wellness; we know
that there is no one single product for everyone - our products are tailored
to suit tastes and habits wherever you are.
^1^I£1 1^I1/
Nestlé's relationship with Ìndia dates back to
1912, when it began trading as The Nestlé
Anglo-Swiss Condensed Milk Company (Export)
Limited, importing and selling finished products
in the Ìndian market.
After Ìndia's independence in 1947, the
economic policies of the Ìndian Government
emphasized the need for local production.
(O^I....
Nestlé responded to Ìndia's aspirations by forming a company in Ìndia and set up its
first factory in 1961 at Moga, Punjab, where the Government wanted Nestlé to
develop the milk economy. Progress in Moga required the introduction of Nestlé's
Agricultural Services to educate advice and help the farmer in a variety of aspects.
From increasing the milk yield of their cows through improved dairy farming methods,
to irrigation, scientific crop management practices and helping with the procurement
of bank loans. Nestlé set up milk collection centers that would not only ensure prompt
collection and pay fair prices, but also instill amongst the community, a confidence in
the dairy business. Progress involved the creation of prosperity on an on-going and
sustainable basis that has resulted in not just the transformation of Moga into a
prosperous and vibrant milk district today, but a thriving hub of industrial activity, as
well.
Nestlé has been a partner in Ìndia's growth for over nine decades now and has built a
very special relationship of trust and commitment with the people of Ìndia. The
Company's activities in Ìndia have facilitated direct and indirect employment and
provides livelihood to about one million people including farmers, suppliers of
packaging materials, services and other goods.
(O^I....
The Company continuously focuses its efforts to better understand the changing
lifestyles of Ìndia and anticipate consumer needs in order to provide Taste, Nutrition,
Health and Wellness through its product offerings. The culture of innovation and
renovation within the Company and access to the Nestlé Group's proprietary
technology/Brands expertise and the extensive centralized Research and
Development facilities gives it a distinct advantage in these efforts. Ìt helps the
Company to create value that can be sustained over the long term by offering
consumers a wide variety of high quality, safe food products at affordable prices.
Nestlé Ìndia manufactures products of truly international quality under internationally
famous brand names such as NESCAFÉ, MAGGÌ, MÌLKYBAR, MÌLO, KÌT KAT, BAR-
ONE, MÌLKMAÌD and NESTEA and in recent years the Company has also introduced
products of daily consumption and use such as NESTLÉ Milk, NESTLÉ SLÌM Milk,
NESTLÉ Fresh 'n' Natural Dahi and NESTLÉ Jeera Raita.
Nestlé Ìndia is a responsible organization and facilitates initiatives that help to
improve the quality of life in the communities where it operates
(O^I....
After nearly a century-old association with the country, today, Nestlé
Ìndia has presence across Ìndia with 7 manufacturing facilities and 4
branch offices spread across the region.
Nestlé Ìndia's first production facility, set up in 1961 at Moga
(Punjab), was followed soon after by its second plant, set up at
Choladi (Tamil Nadu), in 1967. Consequently, Nestlé Ìndia set up
factories in Nanjangud (Karnataka), in 1989, and Samalkha
(Haryana), in 1993. This was succeeded by the commissioning of
two more factories - at Ponda and Bicholim, Goa, in 1995 and 1997
respectively. The seventh factory was set up at Pantnagar,
Uttarakhand, in 2006.
The 4 branch offices in the country help facilitate the sales and
marketing of its products. They are in Delhi, Mumbai, Chennai and
Kolkata. The Nestlé Ìndia head office is located in Gurgaon,
Haryana.
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(1O(O£/I1^ /^I
(O^I1(I1O^1)·
£1/±/£1I11^ )/)I OI
±/£/^(1 ^111I
(Rs Crore)
Dec ' 08 Dec ' 07 Dec ' 06 Dec ' 05 Dec ' 04
Sources of funds
Owner's fund
Equity share capital 96.42 96.42 96.42 96.42 96.42
Share application money - - - - -
PreIerence share capital - - - - -
Reserves & surplus 376.93 322.01 292.47 257.72 222.99
oan funds
Secured loans 0.82 2.87 16.27 14.3 7.91
Unsecured loans - - - - -
Total 474.17 421.3 405.16 368.4 327.3
/^^1I^ )/)I OI ±/£/^(1
^111I
Uses of funds
Fixed assets
Gross block 1.404.85 1.179.77 1.058.27 942.4 838.16
Less : revaluation reserve - - - - -
Less : accumulated depreciation 651.85 577.96 516.48 468.63 440.94
Net block 752.99 601.81 541.8 473.77 397.22
Capital work-in-progress 109.17 73.7 38.24 22.83 34.09
¡nvestments 34.9 94.4 77.77 104.43 154.86
Net current assets
Current assets. loans & advances 836.86 678.69 583.45 514.59 421.2
Less : current liabilities & provisions 1.259.75 1.027.31 836.1 747.18 680.05
Total net current assets -422.89 -348.61 -252.65 -232.6 -258.9
Miscellaneous expenses not written - - - - -
Total 474.17 421.3 405.16 368.4 327.3
Notes:
Book value of unquoted investments 34.9 94.4 77.77 104.43 154.86
Market value of quoted investments - - - - -
Contingent liabilities 84.9 63.27 35.93 50.04 10.39
Number of equity shares outstanding {Lakhs· 964.16 964.16 964.16 964.16 964.16
))OI1I c £O^^ ^I/I11^I
(Rs Crore)
ec ' 08 ec ' 07 ec ' 06 ec ' 05 ec ' 04
¡ncome
Operating income 4.328.65 3.500.96 2.819.16 2.475.09 2.229.42
Expenses
Material consumed 2.122.74 1.692.53 1.334.79 1.119.07 1.041.44
Manufacturing expenses 233.21 186.09 168.21 152.97 126.15
Personnel expenses 314.58 269.44 216.16 183.29 164.25
8elling expenses 449.4 340.2 278.33 268.77 242.9
Administrative expenses 371.77 329.73 289.75 248.55 226.48
Expenses capitalized - - - - -
Cost of sales 3.491.70 2.817.99 2.287.24 1.972.65 1.801.22
Operating profit 836.95 682.97 531.92 502.43 428.2
Other recurring income 32.91 25.13 20.61 23 11.09
Adjusted PB¡T 869.86 708.1 552.53 525.44 439.3
Financial expenses 1.64 0.85 0.44 0.21 0.78
epreciation 92.36 74.74 66.28 56.84 49.14
Other write offs - - - - -
Adjusted PBT 775.86 632.5 485.8 468.39 389.38
Tax charges 238.74 214.8 165.43 159.49 134.58
Adjusted PAT 537.12 417.7 320.37 308.9 254.8
Non recurring items -3.03 -3.89 -5.28 0.67 -2.88
Other non cash adjustments - - - - -
Reported net profit 534.08 413.81 315.1 309.57 251.92
Earnings before appropriation 546.6 424.28 322.32 313.03 296.15
Equity dividend 409.77 318.17 245.86 241.04 236.22
Preference dividend - - - - -
ividend tax 69.64 52.21 34.48 33.81 31.29
Retained earnings 67.19 53.9 41.98 38.18 28.65
(/^1 I£O+ ^I/I11^I
Dec '04 Dec '05 Dec '06 Dec '07 Dec '08
12 mths 12 mths 12 mths 12 mths 12 mths
et Profit Before Tax 386.49 469.06 480.52 628.61 772.83
et Cash From Operating
Activities
365.18 403.06 418.55 519.19 723.57
et Cash (used in)/from
Investing Activities
-65.04 -130.36 -121.73 -168.71 -251.92
et Cash (used in)/from
Financing Activities
-215.75 -295.94 -283.76 -372.45 -375.22
et (decrease)/increase In Cash
and Cash Equivalents
84.38 -23.24 13.06 -21.97 96.43
Opening Cash & Cash
Equivalents
79.93 164.31 141.07 154.13 132.16
Closing Cash & Cash
Equivalents
164.31 141.07 154.13 132.16 228.59
)/I1O /^/£·^1^
A tool used by individuals to conduct a
quantitative analysis of information in a
company's financial statements. Ratios
are calculated from current year numbers
and are then compared to previous years,
other companies, the industry, or even the
economy to judge the performance of the
company. Ratio analysis is predominately
used by proponents of fundamental
analysis.
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8aLlo analvsls ls an lmporLanL and aaeŴold Lechnlque of flnanclal analvslsŦ 1he
followlna are some of Lhe advanLaaes / 8eneflLs of raLlo analvslsť
5|mp||f|es f|nanc|a| statementsť L slmpllfles Lhe comprehenslon of flnanclal
sLaLemenLsŦ 8aLlos Lell Lhe whole sLorv of chanaes ln Lhe flnanclal condlLlon of Lhe
buslness
Iac|||tates |nterŴf|rm compar|sonť L provldes daLa for lnLerŴflrm comparlsonŦ 8aLlos
hlahllahL Lhe facLors assoclaLed wlLh wlLh successful and unsuccessful flrmŦ 1hev
also reveal sLrona flrms and weak flrmsţ overvalued and undervalued flrmsŦ
ne|ps |n p|ann|ngť L helps ln plannlna and forecasLlnaŦ 8aLlos can asslsL
manaaemenLţ ln lLs baslc funcLlons of forecasLlnaŦ Þlannlnaţ coŴordlnaLlonţ conLrol
and communlcaLlonsŦ
Makes |nterŴf|rm compar|son poss|b|eť 8aLlos analvsls also makes posslble
comparlson of Lhe performance of dlfferenL dlvlslons of Lhe flrmŦ 1he raLlos are
helpful ln decldlna abouL Lhelr efflclencv or oLherwlse ln Lhe pasL and llkelv
performance ln Lhe fuLureŦ
ne|p |n |nvestment dec|s|onsť L helps ln lnvesLmenL declslons ln Lhe case of
lnvesLors and lendlna declslons ln Lhe case of bankers eLcŦ
£11I/I1O^^ OI )/I1O^
/^/£·^1^
The ratios analysis is one of the most powerful tools of financial management. Though ratios are simple to
calculate and easy to understand, they suffer from serious limitations.
Limitations of financiaI statements: Ratios are based only on the information which has been recorded in the
financial statements. Financial statements themselves are subject to several limitations. Thus ratios derived, there
from, are also subject to those limitations. For example, non-financial changes though important for the business
are not relevant by the financial statements. Financial statements are affected to a very great extent by accounting
conventions and concepts. Personal judgment plays a great part in determining the figures for financial
statements.
Comparative study required: Ratios are useful in judging the efficiency of the business only when they are
compared with past results of the business. However, such a comparison only provide glimpse of the past
performance and forecasts for future may not prove correct since several other factors like market conditions,
management policies, etc. may affect the future operations.
Ratios alone are not adequate: Ratios are only indicators, they cannot be taken as final regarding good or bad
financial position of the business. Other things have also to be seen.
ProbIems of price IeveI changes: A change in price level can affect the validity of ratios calculated for different
time periods. Ìn such a case the ratio analysis may not clearly indicate the trend in solvency and profitability of the
company. The financial statements, therefore, be adjusted keeping in view the price level changes if a meaningful
comparison is to be made through accounting ratios.
Lack of adequate standard: No fixed standard can be laid down for ideal ratios. There are no well accepted
standards or rule of thumb for all ratios which can be accepted as norm. Ìt renders interpretation of the ratios
difficult.
Limited use of singIe ratios: A single ratio, usually, does not convey much of a sense. To make a better
interpretation, a number of ratios have to be calculated which is likely to confuse the analyst than help him in
making any good decision.
PersonaI bias: Ratios are only means of financial analysis and not an end in itself. Ratios have to interpreted and
different people may interpret the same ratio in different way.
IncomparabIe: Not only industries differ in their nature, but also the firms of the similar business widely differ in
their size and accounting procedures etc. Ìt makes comparison of ratios difficult and misleading.
(£/^^1I1(/I1O^ OI /((O+^I1^·
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%raditionaI
CIassification or
Statement Ratios
FunctionaI CIassification or
CIassification According to
%ests
Significance Ratios or
Ratios According to
Importance
1. Profit and Ioss account
ratios or
revenue/income
statement ratios
2. BaIance sheet ratios or
position statement
ratios
3. Composite/mixed ratios
or inter statement ratios
1. ProfitabiIity ratios
2. Liquidity ratios
3. Activity ratios
4. Leverage ratios or Iong term
soIvency ratios
5. VaIuation ratios
1. Primary ratios
2. Secondary ratios
))OI1I/±1£1I· )/I1O^
ross Profit Ratio Ìndicates the
relationship between net sales revenue and
the cost of goods sold. This ratio should be
compared with industry data as it may
indicate insufficient volume and excessive
purchasing or labor costs.
et Profit Ratio A measure of net income
generated by each rupee of sales.
Operating Ratio A measure of the
operating income generated by each rupee of
sales.
£1O+1I1I· )/I1O
Current Ratio = Provides an indication of the Iiquidity of the business by
comparing the amount of current assets to current IiabiIities. A business's
current assets generaIIy consist of cash, marketabIe securities, accounts
receivabIe, and inventories. Current IiabiIities incIude accounts payabIe,
current maturities of Iong-term debt, accrued income taxes, and other accrued
expenses that are due within one year. In generaI, businesses prefer to have at
Ieast one doIIar of current assets for every doIIar of current IiabiIities. However,
the normaI current ratio fIuctuates from industry to industry. A current ratio
significantIy higher than the industry average couId indicate the existence of
redundant assets. ConverseIy, a current ratio significantIy Iower than the
industry average couId indicate a Iack of Iiquidity.
Liquid /Acid %est / Quick Ratio = A measurement of the Iiquidity position of the
business. %he quick ratio compares the cash pIus cash equivaIents and
accounts receivabIe to the current IiabiIities. %he primary difference between
the current ratio and the quick ratio is the quick ratio does not incIude
inventory and prepaid expenses in the caIcuIation. ConsequentIy, a business's
quick ratio wiII be Iower than its current ratio. It is a stringent test of Iiquidity.
Cash Ratio= Indicates a conservative view of Iiquidity such as when a company
has pIedged its receivabIes and its inventory, or the anaIyst suspects severe
Iiquidity probIems with inventory and receivabIes.
/(I1(1I· )/I1O
Inventory/Stock %urnover Ratio = Indicates the Iiquidity of the
inventory.
Debtors/ReceivabIes %urnover Ratio = Indicates the Iiquidity of the
company's receivabIes.
Average CoIIection Period = Indicates the Iiquidity of the company's
receivabIes in days.
Working CapitaI %urnover Ratio = Indicates the turnover in working
capitaI per year. A Iow ratio indicates inefficiency, whiIe a high IeveI
impIies that the company's working capitaI is working too hard.
Fixed Assets %urnover Ratio= Measures the capacity utiIization and
the quaIity of fixed assets.
Current Assets %urnover Ratio= Measures the capacity utiIization and
the quaIity of current assets.
%otaI Assets %urnover Ratio= Measures the activity of the assets and
the abiIity of the business to generate saIes through the use of the
assets.
)1I+)^ )/I1O /^I (/£+/I1O^ )/I1O
Return On Equity CapitaI ƹ Measures Lhe lncome
earned on Lhe shareholderƌs lnvesLmenL ln Lhe
buslnessŦ
Return On CapitaI EmpIoyed (ROCE) Ratio ƹ
Measures Lhe lncome earned on Lhe lnvesLed caplLalŦ
Earnings Per Share Ratio ƹ Measure Lo calculaLe Lhe
earnlna afLer Laklna ÞA1 lnLo conslderaLlonŦ
Dividend Per Share Ratio ƹ Measures dlvldend per
shareŦ
Book VaIue Per Shareƹ Measures Lhe book value per
shareŦ
Dividend YieIdƹ Measure Lhe vleldŦ
£1(1)/·1 )/I1O O) £O^· I1)
^O£(1^(· )/I1O
,Debt Equity Ratio ƹ ndlcaLes how well credlLors are
proLecLed ln case of Lhe companvƌs lnsolvencvŦ
,Interest Coverage Or Debt Service Ratio ƹ
ndlcaLes a companvƌs capaclLv Lo meeL lnLeresL
pavmenLsŦ uses L81 (Larnlnas 8efore nLeresL and
1axes)
,%otaI Debt Ratioƹ Þrovldes lnformaLlon abouL Lhe
companvƌs ablllLv Lo absorb asseL reducLlons arlslna
from losses wlLhouL [eopardlzlna Lhe lnLeresL of
credlLorsŦ
,Debt- Assets Ratioƹ ndlcaLes lonaŴLerm debL usaaeŦ
·)O^^ ))OI1I )/I1O
Gross Profit Ratio Gross
Profit/Net Sales * 100
2004 19.57
2005 21.02
2006 19.44
2007 20.05
2008 17.02
Comment:-
As we see from the above figures
that gross profit is fluctuating,
the company has to take
certain measures to increase
its gross profit in order to
increase its profitability
position.
Ŧ37
2Ŧ02
Ŧ44
20Ŧ03
7Ŧ02
55 ÞII1
2004Ŵ2003
2003Ŵ2006
2006Ŵ2007
2007Ŵ2008
2008Ŵ200
^1I ))OI1I )/I1O
Net Profit Ratio Net Profit/
Net Sales * 100
2004 11.24
2005 12.39
2006 11.09
2007 11.73
2008 12.24
Comment:-
The net profit is ranging from
11-12, which is satisfactory,
but if it wants to improvise
further it has to decrease
expenses & increase sales
or both.
Ŧ24
2Ŧ3
Ŧ0
Ŧ73
2Ŧ24
-1 ÞII1
2004Ŵ2003
2003Ŵ2006
2006Ŵ2007
2007Ŵ2008
2008Ŵ200
O)1)/I1^·))OI1I )/I1O
Operating Profit Operating
Profit/Net Sales*100
2004 19.2
2005 20.02
2006 18.86
2007 19.50
2008 17.20
Comment:-
The company's operating ratio
is decreasing in 2008, so
the company has to
decrease its operating
expenses, for increasing the
profitabilityŦ
Ŧ2
20Ŧ02
8Ŧ86
Ŧ3
7Ŧ2
Þ1I- ÞII1
2004Ŵ2003
2003Ŵ2006
2006Ŵ2007
2007Ŵ2008
2008Ŵ200
)1I+)^ O^ 1^(1^I1^I
Return On Ìnvestment
PBÌT/Ìnvestment *100
(Or) PBÌT/ Capital
Employed * 100
2004 119.2
2005 127.18
2006 120.01
2007 150.33
2008 163.97
Comment:-
The Company is improvising
its return on investment and
also has quite higher rate of
returnŦ
Ŧ2
27Ŧ8
20Ŧ0
30Ŧ33
63Ŧ7
1U- - CÞI1
MÞ%Ʒ%
2004Ŵ2003
2003Ŵ2006
2006Ŵ2007
2007Ŵ2008
2008Ŵ200
)1I+)^ O^ ^1I +O)I1
Return On Net Worth Profit
After Tax - Preference
Dividend/Net Worth *100
(Or) Profit After Tax -
Preference Dividend/Eq.
Shareholder Fund
2004 78.87
2005 87.42
2006 81.03
2007 98.90
2008 112.83
Comment:-
Company's profitability
position has increased as
the return on net worth has
also increased.
78Ŧ87
87Ŧ42
8Ŧ03

2Ŧ83
1U- - -1 W1n%Ʒ%
2004Ŵ2003
2003Ŵ2006
2006Ŵ2007
2007Ŵ2008
2008Ŵ200
1/)^1^· )1) ^1/)1
Earnings Per Share Or EPS
PAT- Pref. Dividend/No. Of
Equity Shares
2004 26.13
2005 32.11
2006 32.68
2007 42.92
2008 55.39
Comment:-
The Company's earnings
have been considerably
increased, which suggest
higher margin ratios
26Ŧ3
32Ŧ
32Ŧ68
42Ŧ2
33Ŧ3
-I-5 Þ 5n
ec ƌ04
ec ƌ03
ec ƌ06
ec ƌ07
ec ƌ08
I1(1I1^I )1) ^1/)1
Dividend Per Share Or DPS
Equity Dividend/ No. Of
Equity Shares
2004 24.50
2005 25.00
2006 25.50
2007 33.00
2008 42.50
Comment:-
DPS was increasing consistently,
but in 2008 it has quite high
change in 2008, which suggest
that high dividend to it's
shareholder'sŦ
24Ŧ3
23
23Ŧ3
33
42Ŧ3
IVI- Þ 5n
2004Ŵ2003
2003Ŵ2006
2006Ŵ2007
2007Ŵ2008
2008Ŵ200
±OO1 (/£+1 )1) ^1/)1
Book Value Per Share Eq. Share
Holder Fund
Or Net Worth/No. Of Eq. Shares
2004 33.13
2005 36.73
2006 40.33
2007 43.40
2008 49.09
Comment:-
Book value of the share is
increasing considerably well ,
which suggests higher profits
to the shareholders.
33Ŧ3
36Ŧ73
40Ŧ33
43Ŧ4
4Ŧ0
VU
2004Ŵ2003
2003Ŵ2006
2006Ŵ2007
2007Ŵ2008
2008Ŵ200
(+))1^I )/I1O
Current Ratio Current Asset/
Current Liabilities
2004 0.61
2005 0.66
2006 0.67
2007 0.66
2008 0.66
Comment:-
The Company's current ratio is
not ideal. Ìt will have to
increase it's current assets or
decrease it's current liabilities
or both in order to increase its
liquidity position. Ìdeal is 2:1.
0Ŧ6
0Ŧ66
0Ŧ67
0Ŧ66
0Ŧ66
CU-1 1I
2004Ŵ2003
2003Ŵ2006
2006Ŵ2007
2007Ŵ2008
2008Ŵ200
O+1(1 )/I1O
"uick ratio "uick
assets/current liabilities
2004 0.21
2005 0.28
2006 0.31
2007 0.23
2008 0.29
Comment:-
Though it is fluctuating it is
not ideal so the company
has to decrease current
liabilities and increase
fixed assets or both.
0Ŧ2
0Ŧ28
0Ŧ3
0Ŧ23
0Ŧ2
;UIC 1I
2004Ŵ2003
2003Ŵ2006
2006Ŵ2007
2007Ŵ2008
2008Ŵ200
(/^1 )/I1O
Cash Ratio Cash & Bank
Balance+ Short Term
Ìnvestment/ Current Liabilities
2004 13.43
2005 14.66
2006 13.43
2007 13.85
2008 14.43
Comment:-
The Company's cash ratio has
increased which suggest that
the company is maintaining
ideal cash and short term
investments.
3Ŧ43
4Ŧ66
3Ŧ43
3Ŧ83
4Ŧ43
C5n 1I
2004Ŵ2003
2003Ŵ2006
2006Ŵ2007
2007Ŵ2008
2008Ŵ200
(+))1^I /^^1I I+)^O(1) )/I1O
Current Assets Turnover
Ratio Net Sales/ C.
Assets
2004 9.41
2005 9.20
2006 8.70
2007 7.75
2008 9.10
Comment:-
The Company's current
asset turn over ratio is
fluctuating but it's ideal.
0

2
3
4
3
6
7
8

0 Ŧ4
Ŧ2
8Ŧ7
7Ŧ73
Ŧ
CU-1 5515 1U-V
1I
credlLors Lurn over
raLlo
I1\1I /^^1I I+)^O(1) )/I1O
lxed AsseL 1urnover 8aLloƹ
neL Sales/lxed AsseL
2004 5.33
2007 6.10
2005 5.61
2008 3.20
2006 5.77
Comment:-
ompanv needs Lo lmprove
lL's flxed asseL Lurn over
raLlo bv lncreaslna sales or
bv flxed asseL or bv boLh
0

2
3
4
3
6
7
lxed
AsseL
8aLlo
IOI/£ /^^1I I+)^O(1) )/I1O
Total Assets Turnover Ratio
Net Sales/Fixed Assets +
Current Assets
2004 6.81
2005 7.67
2006 8.02
2007 9.52
2008 10.29
Comment:-
The Company's total assets
turn over ratio has
increased consistently,
which is considerably goodŦ
0
2
4
6
8
0
2
6Ŧ8
7Ŧ67
8Ŧ02
Ŧ32
0Ŧ2
11 551 1U-V 1I
LoLal asseL Lurn over
raLlo
+O)11^· (/)1I/£ I+)^O(1)
)/I1O
Working Capital Turnover Ratio
Net Sales/
Current Assets- C. Liabilities
2004 12.42
2005 12.02
2006 12.01
2007 10.02
2008 11.39
Comment:-
The company's working capital
turn over ratio is fluctuating,
however it has increased in
2008 which is ideal. 0
2
4
6
8
0
2
4
2Ŧ42
2Ŧ02 2Ŧ0
0Ŧ02
Ŧ3
WI- CÞI1 1U-V
1I
worklna caplLal
Lurnover raLlo
1^(1^IO)· I+)^O(1) )/I1O
Ìnventory Turnover Ratio
COGS Or Sales/Avg. Stock
2004 10.34
2005 9.87
2006 10.28
2007 8.79
2008 11.39
Comments:-
The inventory turn over ratio is
fluctuating however, its
increasing in 2008, which
suggest that the company is
having less stock with it.
0
2
4
6
8
0
2
0Ŧ34
Ŧ87
0Ŧ28
8Ŧ7
Ŧ3
nvenLorv Lurn over
raLlo
I1±IO)^ I+)^O(1) )/I1O
Debtors Turn Over Ratio
Sales/Avg. Receivables
2004 77.05
2005 87.32
2006 65.35
2007 64.09
2008 87.37
Comments:-
The debtors turn over has
increased which suggest
higher activity ratio.
0
0
20
30
40
30
60
70
80
0
77Ŧ03
87Ŧ32
63Ŧ33
64Ŧ0
87Ŧ37
15 1U- V 1I
ebLors Lurn over
raLlo
/(1)/·1 (O££1(I1O^ )1)1OI
Averaae ollecLlon Þerlodƹ
363/ ebLors 8aLlo
2004 4.74
2005 4.18
2006 5.85
2007 5.70
2008 4.20
Comment:-
1he averaae collecLlon perlod
has decreased whlch ls ldeal
as Lhe debLors are pavlna
earlvţ whlch reduces Lhe
rlskŦ
4Ŧ74
4Ŧ8
3Ŧ33
3Ŧ7
4Ŧ2
2004 2003 2006 2007 2008
V CC1I-
ÞI
Averaae ŧ
I1±I 1O+1I· )/I1O
Debt-equity Ratio Loan
Funds/Net Worth
2004 0.02
2005 0.04
2006 0.04
2007 0.01
2008 0.02
Comment:-
The company's debt equity
ratio is fluctuating which
suggests that the company
has lesser loan funds which
is considerably good.

Ʒ
Ʒ









Ʒ

1 ;U1I 1I
ebL equLlv raLlo
IOI/£ I1±I )/I1O
Total Debt Ratio
Debt/Equity+ Debt
2004 0.02
2005 0.04
2006 0.04
2007 0.01
2008 0.02
Comment:-
The Company's total debt is
fluctuating and is less
when compared to equity
and debt, which suggest
that the leverage level is
ideal.

Ʒ




4Ʒ 4Ʒ
Ʒ

11 1 1I
1oLal Lurn over raLlo
I1±I /^^1I )/I1O
Debt Asset Ratio Total
Debt/Total Asset-misc.
Asset
20040.024
20050.062
20060.064
20070.08
20080.02
Comments:-
The company's total debt is
less when compared to total
assets which indicates that
the company has lesser
debts.
0Ŧ00Ʒ
Ŧ00Ʒ
2Ŧ00Ʒ
3Ŧ00Ʒ
4Ŧ00Ʒ
3Ŧ00Ʒ
6Ŧ00Ʒ
7Ŧ00Ʒ
8Ŧ00Ʒ
2Ŧ40Ʒ
6Ŧ20Ʒ
6Ŧ40Ʒ


1 551 1I
ebL asseL raLlo
1^I1)1^I (O(1)/·1 )/I1O
Ìnterest Coverage Ratio
PBÌT/ Ìnterest
2004 498.90
2005 2208.29
2006 1103.09
2007 741.20
2008 473.22
Comments:-
The Company's Ìnterest
coverage is fluctuating
but in the year 2008 it has
decreased ,it has to
increase it's profits as
they are less in 2008.
0
300
000
300
2000
2300
2 3 4 3
48Ŧ
2208Ŧ2
03Ŧ0
74Ŧ2
473Ŧ22
Serles
)1(O/^I/I1O^^
The overall financial position of the company is satisfactory.
The company's needs to improve it's profitable position which is ideal, but
less when compared to other years, in order to earn return on the resources
committed to business.
The company's liquidity position is satisfactory but not ideal, as the current
assets and the current liabilities have being considerably decreased when
compared to previous year, in order to meet it's current obligations.
The company's leverage or capital gearing ratios are improving and the
company's total debt is less, and it has secured loans rather than unsecured
loans which holds good trust among the suppliers for the company & it can
also raise additional capital from public as it offers profitable and stable
dividends.
The activity ratio of the company is i.e. current asset turn over ratio needs to
be improved, the rest of the ratios give satisfactory result.
On the whole, the company's overall position is satisfactory, and has the
name, fame and trust of people. Ìt is listed in one among top 25 FMCG'S of
Ìndia & has potential to survive.
I1/^1 ·O+..