Analysis of Financial Statements

Of
Crompton & Greaves

Glen D’souza 06
TYBFM
 Index

No. CONTENTS
1 INTRODUCTION

Balance Sheet of Crompton & Greaves

2

Profit & Loss account of Crompton &

3 Greaves

Analysis of Profit & Loss account of last

4 five years

5 Conclusion

6 Bibliography

Introduction
Crompton Greaves (CG) is an Indian multinational engaged in design,
manufacturing, and marketing of products related to power generation,
transmission, and distribution based in Mumbai.

HISTORY

Crompton Greaves goes back to 1878, when Col. R.E.B. Crompton founded
R.E.B.Crompton & Company.
The company merged with F.A Parkinson in the year 1927 to form Crompton
Parkinson Ltd., (CPL).
Greaves Cotton and Co (GCC) was appointed as their concessionaire in India. In
1937, CPL established, it's wholly owned Indian subsidiary viz. Crompton
Parkinson Works Ltd., in Bombay, along with a sales organization, Greaves Cotton
& Crompton Parkinson Ltd., in collaboration with GCC.
In the year 1947, with the dawn of Indian independence, the company was taken
over by
Lala Karamchand Thapar, an eminent Indian industrialist. Crompton Greaves is
headquartered in a self-owned landmark building at Worli, Mumbai.
Today, Crompton Greaves (CG) is part of the US$ 3 bn Avantha Group, a
conglomerate
with an impressive global footprint.
Mr. Gautam Thapar, the third generation of Lala Karamchand Thapar, is the
Chairman & CEO of India's foremost diversified corporation, the Avantha Group.
Mr. Sudhir Mohan Trehan is the Managing Director of Crompton Greaves Limited
since May 2000. He was the recipient of the ‘Outstanding Chief Executive of the
Year’ Award for 2000-2001, instituted by the Indian Institution of Industrial
Engineering, for steps he took towards successfully implementing his vision of
making Crompton Greaves a world-class manufacturing company. In addition to
above, the Board of Directors includes the renowned names of Dr. O. Goswami,
Mr. S. Labroo, Dr. Valentin A H von Massow, Ms. M. Pudumjee, Mr. S.P. Talwar and
Mr. S.R. Bayman.

Balance Sheet of Crompton & Greaves

Balance Sheet of Crompton
------------------- in Rs. Cr. -------------------
Greaves

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10
Sources Of Funds
Total Share Capital 52.37 73.32 73.32 73.32 128.30
Equity Share Capital 52.37 73.32 73.32 73.32 128.30
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 468.77 586.01 842.67 1,153.99 1,622.00
Revaluation Reserves 15.24 14.97 14.76 14.58 14.42
Net worth 536.38 674.30 930.75 1,241.89 1,764.72
Secured Loans 217.12 241.35 62.37 34.52 13.82
Unsecured Loans 32.65 28.69 25.19 19.15 12.96
Total Debt 249.77 270.04 87.56 53.67 26.78
Total Liabilities 786.15 944.34 1,018.31 1,295.56 1,791.50
Mar '06 Mar '07 Mar '08 Mar '09 Mar '10
Application Of Funds
Gross Block 847.41 915.31 1,055.51 1,111.53 1,171.40
Less: Accum. Depreciation 497.69 525.31 562.80 600.82 637.59
Net Block 349.72 390.00 492.71 510.71 533.81
Capital Work in Progress 14.08 43.38 22.59 12.95 33.03
Investments 102.13 135.11 194.33 265.52 688.06
Inventories 191.81 247.01 262.95 281.32 303.53
Sundry Debtors 659.64 803.89 956.22 1,012.26 1,212.79
Cash and Bank Balance 68.94 137.57 109.67 181.49 112.43
Total Current Assets 920.39 1,188.47 1,328.84 1,475.07 1,628.75
Loans and Advances 185.93 244.10 294.15 516.55 402.31
Fixed Deposits 56.19 36.00 47.98 291.02 436.07
Total CA, Loans & Advances 1,162.51 1,468.57 1,670.97 2,282.64 2,467.13
Deferred Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 782.30 934.69 1,108.20 1,265.88 1,534.63
Provisions 59.99 158.04 254.10 510.38 395.90
Total CL & Provisions 842.29 1,092.73 1,362.30 1,776.26 1,930.53
Net Current Assets 320.22 375.84 308.67 506.38 536.60
Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00
Total Assets 786.15 944.33 1,018.30 1,295.56 1,791.50
Contingent Liabilities 357.03 675.38 801.03 788.21 362.56
Book Value (Rs) 99.52 17.99 24.99 33.48 27.28

Profit & Loss account of Crompton & Greaves

Profit & Loss account of Crompton
------------------- in Rs. Cr. -------------------
Greaves

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10
Income
Sales Turnover 2,793.57 3,692.17 4,277.34 4,971.85 5,627.68
Excise Duty 217.35 291.00 346.84 293.06 232.09
Net Sales 2,576.22 3,401.17 3,930.50 4,678.79 5,395.59
Other Income 16.03 35.62 74.03 -67.25 124.18
Stock Adjustments 17.80 71.81 -4.72 1.66 49.29
Total Income 2,610.05 3,508.60 3,999.81 4,613.20 5,569.06
Expenditure
Raw Materials 1,838.91 2,562.04 2,693.26 3,101.11 3,534.44
Power & Fuel Cost 19.83 23.72 28.82 29.04 31.02
Employee Cost 154.24 174.26 200.99 227.23 255.79
Other Manufacturing Expenses 13.39 15.08 122.55 173.63 200.37
Selling and Admin Expenses 234.36 278.09 339.62 351.80 508.56
Miscellaneous Expenses 81.87 77.14 56.75 43.53 56.38
Preoperative Exp Capitalised 0.00 0.00 0.00 -1.17 -0.04
Total Expenses 2,342.60 3,130.33 3,441.99 3,925.17 4,586.52
Mar '06 Mar '07 Mar '08 Mar '09 Mar '10
Operating Profit 251.42 342.65 483.79 755.28 858.36
PBDIT 267.45 378.27 557.82 688.03 982.54
Interest 28.48 31.91 31.51 28.55 20.00
PBDT 238.97 346.36 526.31 659.48 962.54
Depreciation 44.18 39.36 40.66 45.21 51.90
Other Written Off 0.00 0.00 0.00 0.00 0.00
Profit Before Tax 194.79 307.00 485.65 614.27 910.64
Extra-ordinary items 0.00 0.00 0.00 0.00 0.00
PBT (Post Extra-ord Items) 194.79 307.00 485.65 614.27 910.64
Tax 31.75 114.63 171.73 217.18 293.30
Reported Net Profit 163.05 192.37 313.92 397.09 617.34
Total Value Addition 503.68 568.30 748.73 824.06 1,052.08
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 36.66 47.13 58.65 73.31 80.65
Corporate Dividend Tax 5.14 6.61 9.97 12.46 13.70
Per share data (annualized)
Shares in issue (lakhs) 523.67 3,665.67 3,665.67 3,665.67 6,414.92
Earning Per Share (Rs) 31.14 5.25 8.56 10.83 9.62
Equity Dividend (%) 70.00 70.00 80.00 100.00 110.00

Analysis of Profit and loss account of last five years

From the above P&L Account, the total expenses of the company has increased by
25%, 10%, 13%, and 15% respectively.

And the profit after tax can be explained as in the year 2006 was 163.05 crores, and
then there has been a increase of 15% in the year 2007. 39% increment in the year
2008 and 14% and 33% in the year ending March 2010.

Conclusion
So we can say from the growth of the company from last year , that Crompton and
Greaves are growing rapidly.

Bibliography

www.moneycontrol.com

www.cglonline.com