CERTIFICATE FROM THE PROJECT GUIDE

This is to certify that the Project Report titled “Quantitative analysis of

Parle Industries” is a bonafide work of Rashi Arora enrolment number
R200190580005 undertaken for the partial fulfillment of Masters in
Commerce (M. Com) degree of Barkatullah University under my guidance.
This project work is original and has not been submitted earlier for the award
of any degree or diploma of any other University or Institution.

Signature of the Guide

Dr. Amrita Sahu
Associate Professor
Department of Commerce,
BSSS, Bhopal

DECLARATION
I Rashi Arora daughter of Pradeep Arora certify that the project report
entitled on “Quantitative analysis of Parle Industries”, Quantitative analysis report
on Parle Industries, prepared by me is my personal and is authentic work under the
guidance of Dr. Amrita Sahu, Associate Professor, Department of Commerce.

Date: 15/06/2021 Signature of the Student

Place: BHOPAL Name: Rashi Arora
Class: M.COM (IV SEMESTER)
 Roll Number: 19103040

INTRODUCTION

Parle Products Private Limited is an Indian food products company. It owns the
famous biscuit brand Parle-G. In 2019, it had a 7% share of the global biscuit market,
growing to 50% by of 2020.[3] As of 2020, as per Nielsen, it is the largest selling
biscuit brand in the world.

History
Parle Products company was founded in 1929 in British India by the Chauhan family
of Vile Parle, Bombay. Parle began manufacturing biscuits in 1939. In 1947, when
India became independent, the company launched an ad campaign showcasing its
Gluco biscuits as an Indian alternative to the British biscuits.[5] The Parle brand
became well known in India following the success of products such as the Parle-G
biscuits and cold beverages like Gold Spot, Thums Up and Frooti.

The original Parle company was split into three separate companies, owned by the
different factions of the original Chauhan family, with a majority of it owned by
Parle Agro products:[6]

Parle Products (1950s), led by Vijay, Sharad and Raj Chauhan (owner of the brands
Parle-G, 20-20, Magix, Milkshakti, Melody, Mango Bite, Poppins, Londonderry,
Kismi Toffee Bar, Monaco and KrackJack).
Parle Agro (1960s), led by Prakash Chauhan and his daughters Schauna, Alisha and
Nadia (owner of the brands such as Frooti and Appy).
Parle Bisleri (1970s), led by Ramesh Chauhan, his wife Zainab Chauhan and their
daughter Jayanti Chauhan.
All three companies continue to use the family trademark name “Parle”. The original
Parle group was amicably segregated into three non-competing businesses. But a
dispute over the use of “Parle” brand arose when Parle Agro diversified into the
confectionery business, thus becoming a competitor to Parle Products. In February
2008, Parle Products sued Parle Agro for using the brand Parle for competing
confectionery products. Later, Parle Agro launched its confectionery products under
a new design which did not include the Parle brand name.[7] In 2009, the Bombay
High Court ruled that Parle Agro can sell its confectionery brands under the brand
name “Parle” or “Parle Confi” on condition that it clearly specifies that its products
belong to a separate company which has no relationship with Parle Products.

Branches

Apart from the original factory in Mumbai, Parle has manufacturing facilities at
Neemrana (Rajasthan), Bengaluru (Karnataka), Hyderabad (Telangana), Kutch
(Gujarat), Khopoli (Maharashtra), Indore (Madhya Pradesh), Pantnagar
(Uttarakhand),

Sitarganj (Uttarakhand), and Bahadurgarh (Haryana), Muzaffarpur (Bihar) and

plants are one of the largest manufacturing plants of Parle in India. It deploys large-
scale automation for manufacturing of quality biscuits. It also has several
manufacturing units on contract.
Parle Products
The highest and the fast selling product under this company, is Biscuits. It has largest
number of shares and it plays a vital role in Biscuits Industries.

Parle G
Parle G is one of the world’s largest selling Biscuits. It is fully filled with loads of
milk and wheat. The Parle products mainly the Parle G has more nutrients and
strengthens millions of people serving them nearly 80 years. Parle G is one of the
healthy snacks for vast number of people in the world. People consume them for the
value it offers and also due to good taste. The price varies from Rs 2, Rs 5 to Rs 50.

Hide & Seek

Parle introduced biscuit’s that fulfills kid’s happiness and mouth-watering delight
having the quality and taste which is termed as chocolate chip biscuits which is
called as Hide & Seek. Packed with a plenty of chocolate chips, once you start eating
Hide & Seek you will end up eating the whole packet within no time. The price
varies from Rs 5 to Rs 20, and upto Rs 50.
Londonderry

These are one of the best candy made from Milk and Caramel and are very tasty.
The price of this is just 0.50paise.

Melody

These are filled with chocolate. Parle Melody comes with a layer of caramel on

outside and chocolate filled in. Once you eat them, you will never stop asking it once
more. These are very delicious to eat. The price of this chocolate is Rs 1.
Parle’s Wafers

These wafers are made with potatoes and are delicious to taste, crunchy and come
with four awesome flavours which are Tangy Tomato, Cream and Onion, Classic
Salted and Masala Masti. Prices varies from Rs 5 – Rs 20.

Munchies

This snack is very good in taste. Types of Parle Munchies are Jeffs and Sixer. Jeff
Munchies are very crunchy and salted biscuits which are good flavoured with cumin
seed in it. Sixer Munchies are also crunchy and salty in taste and once you start
eating them, you will surely end up eating more and more within no time.

Frooti

These were sold in tetra pack and one of the largest mango drink in the country.
OBJECTIVES
The primary objective of financial statement analysis is to understand and diagnose

the information contained in financial statement with a view to judge the profitability
and financial soundness of the firm, and to make forecast about future prospects of
the firm. The purpose of analysis depends upon the person interested in such analysis
and his object.

However, the following purposes or objectives of financial statements analysis may

be stated to bring out the significance of such analysis:
(i) To assess the earning capacity or profitability of the firm.
(ii) To assess the operational efficiency and managerial effectiveness.
 (iii) To assess the short term as well as long term solvency position of the
firm.
(iv) To identify the reasons for change in profitability and financial position
of the firm.
(v) To make inter-firm comparison.
(vi) To make forecasts about future prospects of the firm.
(vii) To assess the progress of the firm over a period of time.
(viii) To help in decision making and control.
(ix) To guide or determine the dividend action.
(x) To provide important information for granting credit.

Parle-G logs record sales during coronavirus lockdown

Parle Products gained a market share of around 5% in the highly competitive biscuit
segment, helped by Parle-G biscuits.
Leading food company Parle Products logged record sales of its Parle-G biscuits in
April and May during the lockdown, said a senior company official.

The company has gained a market share of around 5% in the highly competitive
biscuit segment, helped by Parle-G biscuits, preferred by the people stocking up their
pantries during the pandemic.

Parle-G biscuits also gained traction as it was preferred by government agencies and
NGOs working to distribute food relief packages to people during the pandemic
owing to its economic proposition with value package of ₹2 besides being
considered a good source of glucose, Parle Products senior category head Mayank
Shah told PTI.

“The growth was phenomenal and as a result Parle was able to increase its market
share by 4.5 to 5% during the lockdown,” he added.

“This is one of the highest in the recent (time). At least in last 30 to 40 years, we
have not seen this kind of growth,” Mr. Shah said adding in his 20 years of working
with the biscuits major, he hadn’t witnessed a performance like this.

Mr. Shah said Parle-G was comfort food for most Indians and that during times of
uncertainty, it was consumed a lot. Even during earlier crises like tsunami and
earthquakes, sales of Parle-G biscuits had gone up, he added.

“That is the kind of trust people depose in the brand,” he said, adding Parle-G’s long
shelf life as another reason for the preference.

The company had announced that it would donate three crore packs of Parle-G
biscuits when the coronavirus pandemic intensified in India.

“We saw many other people doing that. There were many other organisations, which
were also helping people by distributing Parle-G biscuits,” he said.

Mr. Shah claimed that Parle had “the highest growth rate among all the biscuit
companies”during the lockdown.

Parle Biscuits net profit rises 15% in FY19; revenue up 6.4% to Rs 9,030 cr.
Privately owned Parle Biscuits, part of the Parle Products group, reported 15.2 per
cent year-on-year (YoY) growth in net profit for financial year 2018-19 (FY19) even
as the group along with other top biscuit manufacturers have asked the government
for a goods and services tax (GST) cut.

According to information shared by business platform Tofler, Parle Biscuits’ FY19

net profit was Rs 410 crore versus Rs 355 crore reported the previous year. Total
revenue grew 6.4 per cent YoY to Rs 9,030 crore, with revenue from operations
alone growing nearly 6 per cent to Rs 8,780 crore from the previous year. Other
income jumped 26 per cent to Rs 250 crore in FY19, aiding top line growth.

. Financial Performance:

a) A summary of Company's Financial Performance for 2018-19 is as follows:

Operating & Financial Performance:

During the year under review company made total income of Rs. 113509656/- lakhs
asagainst Rs. 1661575/- lakhs in the previous year. The company has incurred
totalexpenses of Rs. 99697544/- lakhs against Rs. 1550128/- lakhs in the previous
year in the financial statement.

Your Company has made a Net profit of Rs. 9561678/- lakhs against Rs. 41807/-
lakhs in the previous year in financial statement.

Deposits:
The Company has not accepted or renewed any amount falling within the purview
ofprovisions of Section 73 of the Companies Act 2013 (“the Act”) read with
theCompanies (Acceptance of Deposit) Rules 2014 during the year under review.
Hence therequirement for furnishing of details relating to deposits covered under
Chapter V of theAct or the details of deposits which are not in compliance with the
Chapter V of the Actis not applicable.

Particulars of Loans Guarantees or Investments:

Pursuant to the provisions of Section 186 of the Companies Act 2013 read with
TheCompanies (Meetings of Board and its Powers) Rules 2014 as amended from
time to time(including any amendment thereto or re-enactment thereof for the time
being in force)Loans guarantees and investments covered under Section 186 of the
Companies Act 2013form part of the Notes to Accounts of the Financial Statements
provided in this AnnualReport.

Related Party Transactions:

Particulars of contracts or arrangements with related parties referred to insub-section

(1) of section 188 in the form AOC-2:

Your Company has historically adopted the practice of undertaking related

partytransactions only in the ordinary and normal course of business and at arm’s
length aspart of its philosophy of adhering to highest ethical standards transparency
andaccountability. In line with the provisions of the Companies Act 2013 and the
ListingRegulations the Board has approved a policy on related party transactions.
An abridgedpolicy on related party transactions has been placed on the Company’s
website at

https://www.parlesoftwares.com/images/Related%20Partv%20Trasnaction%20Poli
cv.pdf

In view of above All Related Party Transactions (RPTs) which were entered into
duringthe Financial Year 2018-19 were on an arm’s length basis and were in the
ordinary courseof business and did not attract provisions of section

188 of the Companies Act 2013 and were also not material RPTs under regulation
23 of the SEBI Listing Regulations 2015. During the year 2018-19 as required under
section 177of the Companies Act 2013 and regulation 23 of the SEBI Listing
Regulations 2015 allRPTs were placed before the Audit Committee for approval.

A statement showing the disclosure of transactions with related parties including

thetransaction if any with any person or entity belonging to the promoter / promoter
groupwhich hold(s) 10% or more shareholding in the listed entity as required under
AccountingStandard 18 is set out separately in Notes to accounts of Financial
Statements annexed to this Annual Report.

There were no material transactions entered into with related parties during
theperiod under review which may have had any potential conflict with the interests
of the company. Accordingly the disclosure of Related Party Transactions as
required underSection 134 (3) (h) of the Companies Act 2013 in Form AOC-2 is not
applicable.

Dividend:

Due to exigencies of funds and with a view to conserve the resources your directors
donot recommend any Dividend for the financial year 2018-19.

Unpaid Dividend & IEPF:

The Company is not required to transfer any amount to the Investor Education
&Protection Fund (IEPF) and does not have unclaimed dividend which remains to
betransferred to Investor Education & Protection Fund (IEPF).

Transfer To Reserves:

The Board of Directors has not appropriated and transferred any amount to any
Reserveand has decided to retain the entire amount in profit and Loss account.

Auditors of the Company

Statutory Auditor of the Company and their observations on accounts for the
yearended 31st March 2019:

Pursuant to the provisions of Section 139 of the Companies Act 2013 At 35thAnnual
General Meeting held on 25th September 2018 the Members approved appointment
of M/s. Dhawan & Co. Chartered Accountants [FRN: 002864N] to hold officefrom
the conclusion of the 35th Annual General Meeting till the conclusion of the 40th
Annual General Meeting of the Company to be held in the year 2023.

Further The observations / qualifications / disclaimers made by the M/s. Dhawan

&Co. Chartered Accountants [FRN: 002864N] in their report for the Financial Year
ended 31stMarch 2019 read with the explanatory notes therein are self-explanatory
and therefore donot call for any further explanation or comments from the Board
under Section 134 (3) of the Companies Act 2013.

Secretarial Auditor of the Company and their observations on accounts for the
yearended 31st March 2019

Section 204 of the Companies Act 2013 and the Companies (Appointment and
Remuneration of Managerial Personnel) Rules 2014 inter-alia requires every listed
company to annex with its Board’s report a Secretarial Audit Report given by a
Company Secretary in practice in the prescribed form. The Board appointed M/s.
Monika Thanvi & AssociatesCompany Secretaries in Practice as Secretarial Auditor
to conduct Secretarial Audit of the Company for the Financial Year 2018 – 19 and
its report is annexed hereto and markedas Annexure – A. There are no qualifications
reservations or adverse remarks ordisclaimers made by M/s. Monika Thanvi &
Associates Company Secretary in Practice insecretarial audit report.

Regulation 24 (A) of SEBI (Listing Obligation and Disclosure Requirements)

Regulations2015 inter-alia requires every listed company to annex with its Board’s
report aSecretarial Annual Compliance Report given by a Company Secretary in
practice in theprescribed form. The Board appointed M/s. Monika Thanvi &
Associates CompanySecretaries in Practice as Secretarial Auditor to conduct
Secretarial Audit of the company for the Financial Year 2018 – 19 and its report is
annexed hereto and marked as Annexure- B. There are no qualifications reservations
or adverse remarks or disclaimers madeby M/s. Monika Thanvi & Associates
Company Secretary in Practice in SecretarialAnnual Compliance Report

a) Internal Auditor of the Company for Financial Year 2018-19:

Pursuant to Section 138 of Companies Act 2019 and on the recommendation of

AuditCommittee the Board of Directors in its meeting held on 14th August
2018appointed M/s. Motilal & Associates Chartered Accountants as Internal
Auditor of the company for conducting internal audit and lay down report in meeting
of Audit Committeeand Board of Directors at such interval as committee or Board
deems fit as the case maybe.

Details of internal financial controls with reference to the Financial Statements:

The Company has documented its internal financial controls considering the
essential components of various critical processes physical and operational which
includes its design implementation and maintenance along with periodical internal
review of operational effectiveness and sustenance.

This ensures orderly and efficient conduct of its business including adherence to the
company’s policies safeguarding of its assets prevention of errors accuracy and
completeness of the accounting records and the timely preparation of reliable
financial information.

The internal financial controls with reference to the financial statements were
adequate and operating effectively

PROFIT & MAR 21 MAR 20 MAR 19 MAR 18 MAR 17

LOSS
ACCOUNT OF
PARLE
INDUSTRIES (in
Rs. Cr.)

12 mths 12 mths 12 mths 12 mths 12 mths

INCOME

REVENUE 0.01 0.00 0.00 0.00 0.00

FROM
OPERATIONS
[GROSS]
Less: 0.00 0.00 0.00 0.00 0.00
Excise/Sevice
Tax/Other Levies

REVENUE 0.01 0.00 0.00 0.00 0.00

FROM
OPERATIONS
[NET]

TOTAL 0.01 5.49 11.35 0.17 0.27

OPERATING
REVENUES

Other Income 0.64 0.39 0.00 0.00 0.00

TOTAL 0.66 5.88 11.35 0.17 0.27

REVENUE

EXPENSES

Cost Of Materials 0.00 0.00 0.00 0.00 0.00

Consumed

Operating And Direct 0.00 0.00 0.00 0.00 0.00

Expenses

Changes In 0.01 -0.20 -0.74 0.00 0.00

Inventories Of
FG,WIP And Stock-In
Trade

Employee Benefit 0.09 1.29 0.18 0.05 0.10

Expenses

Finance Costs 0.00 0.00 0.39 0.00 0.00

Depreciation And 0.21 0.13 0.00 0.00 0.02

Amortisation
Expenses

Other Expenses 1.15 0.97 0.33 0.10 0.10

TOTAL EXPENSES 1.46 5.73 9.97 0.16 0.21

PROFIT/LOSS -0.80 0.15 1.38 0.01 0.05

BEFORE
EXCEPTIONAL,
EXTRAORDINARY
ITEMS AND TAX

Exceptional Items 0.00 0.00 0.00 0.00 0.00

PROFIT/LOSS -0.80 0.15 1.38 0.01

BEFORE TAX

TAX EXPENSES-
CONTINUED
OPERATIONS

Current Tax -0.31 0.00 0.42 0.00 0.02

Less: MAT Credit 0.00 0.00 0.00 0.00 0.00

Entitlement

Deferred Tax 0.00 0.10 0.01 0.00 0.00

Tax For Earlier Years 0.00 0.00 0.00 0.00 0.00

TOTAL TAX -0.31 0.10 0.43 0.01 0.01

EXPENSES

PROFIT/LOSS -0.49 0.05 0.96 0.00 0.04

AFTER TAX AND
BEFORE
EXTRAORDINARY
ITEMS

PROFIT/LOSS -0.49 0.05 0.96 0.00 0.04

FROM
CONTINUING
OPERATIONS

PROFIT/LOSS FOR -0.49 0.05 0.96 0.00

THE PERIOD

OTHER
ADDITIONAL
INFORMATION

EARNINGS
PER SHARE

Basic EPS (Rs.) -0.35 0.04 0.68 0.00 0.03

Diluted EPS (Rs.) -0.35 0.04 0.68 0.00 0.03

VALUE OF
IMPORTED
AND
INDIGENIOUS
RAW
MATERIALS
STORES,
SPARES AND
LOOSE TOOLS

Imported Raw 0.00 0.00 0.00 0.00 0.00

Materials

Indigenous Raw 0.00 0.00 0.00 0.00 0.00

Materials
STORES,
SPARES AND
LOOSE TOOLS

Imported Stores 0.00 0.00 0.00 0.00 0.00

And Spares

Indigenous Stores 0.00 0.00 0.00 0.00 0.00

And Spares

DIVIDEND AND
DIVIDEND
PERCENTAGE

Equity Share 0.00 0.00 0.00 0.00 0.00

Dividend

Tax On Dividend 0.00 0.00 0.00 0.00 0.00

BALANCE SHEET MAR 21 MAR 20 MAR 19 MAR 18 MAR 17

OF PARLE
INDUSTRIES (in
Rs. Cr.)

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND
LIABILITIES

SHAREHOLDER'S
FUNDS

Equity Share Capital 14.00 14.00 14.00 14.00 14.00

TOTAL SHARE 14.00 14.00 14.00 14.00 14.00

CAPITAL
Reserves and Surplus 6.27 6.76 6.71 5.76 5.75

TOTAL 6.27 6.76 6.71 5.76 5.75

RESERVES AND
SURPLUS

TOTAL 20.27 20.76 20.71 19.76

SHAREHOLDERS
FUNDS

NON-
CURRENT
LIABILITIES

Long Term 0.00 0.00 0.00 0.00 0.00

Borrowings

Deferred Tax 0.00 0.08 0.00 0.00 0.00

Liabilities [Net]

Other Long 0.67 0.03 0.03 0.00 0.00

Term Liabilities

Long Term 0.00 0.00 0.00 0.00 0.00

Provisions

TOTAL NON- 0.67 0.10 0.03 0.00

CURRENT
LIABILITIES

CURRENT
LIABILITIES

Short Term 0.00 0.00 3.00 0.00 0.00

Borrowings

Trade Payables 2.57 2.46 0.94 0.07 0.00

Other Current 1.21 4.67 0.75 0.06 0.09
Liabilities

Short Term 0.00 0.00 0.00 0.00 0.00

Provisions

TOTAL 3.78 7.13 4.69 0.13 0.09

CURRENT
LIABILITIES

TOTAL 24.72 28.00 25.43 19.89

CAPITAL AND
LIABILITIES

ASSETS

NON-
CURRENT
ASSETS

Tangible Assets 0.01 3.46 2.81 2.53 0.03

Intangible Assets 0.00 0.00 0.00 0.00 0.00

Capital Work-In- 0.00 0.00 0.00 0.00 0.00

Progress

Other Assets 0.00 0.00 0.00 0.00 0.00

FIXED 0.01 3.46 2.81 2.53 0.03

ASSETS

Non-Current 0.00 0.00 0.00 0.00 0.00

Investments

Deferred Tax 0.21 0.00 0.02 0.03 0.04

Assets [Net]
Long Term 0.00 0.03 0.03 0.00 0.00
Loans And
Advances

Other Non- 0.00 0.00 0.00 0.00 0.65

Current Assets

TOTAL NON- 0.22 3.49 2.86 2.56

CURRENT
ASSETS

CURRENT
ASSETS

Current 0.00 0.00 0.00 0.00 0.00

Investments

Inventories 18.16 18.18 17.97 17.23 17.23

Trade Receivables 2.73 2.51 2.51 0.07 0.05

Cash And Cash 0.04 0.67 0.02 0.02 0.26

Equivalents

Short Term Loans 0.00 0.00 0.00 0.00 0.00

And Advances

OtherCurrentAssets 3.57 3.14 2.05 0.01 1.58

TOTAL 24.50 24.50 22.56 17.33 19.13

CURRENT
ASSETS

TOTAL ASSETS 24.72 28.00 25.43 19.89

OTHER
ADDITIONAL
INFORMATION

CONTINGENT
LIABILITIES,
COMMITMENTS

Contingent 0.00 0.00 0.00 0.00 0.00

Liabilities

CIF VALUE OF
IMPORTS

Raw Materials 0.00 0.00 0.00 0.00 0.00

Stores, Spares 0.00 0.00 0.00 0.00 0.00

And Loose Tools

Trade/Other 0.00 0.00 0.00 0.00 0.00

Goods

Capital Goods 0.00 0.00 0.00 0.00 0.00

EXPENDITURE
IN FOREIGN
EXCHANGE

Expenditure In 0.00 0.00 0.00 0.00 0.00

Foreign Currency

REMITTANCES
IN FOREIGN
CURRENCIES
FOR
DIVIDENDS

Dividend -- -- -- -- --
Remittance In
Foreign Currency

EARNINGS IN
FOREIGN
EXCHANGE

FOB Value Of -- -- -- -- --
Goods

Other Earnings -- -- -- -- --

BONUS
DETAILS

Bonus Equity -- 10.50 10.50 10.50 10.50

Share Capital

NON-
CURRENT
INVESTMENTS

Non-Current -- -- -- -- --
Investments
Quoted Market
Value

Non-Current -- -- -- -- --
Investments
Unquoted Book
Value

CURRENT
INVESTMENTS

Current -- -- -- -- --
Investments
Quoted Market
Value

Current -- -- -- -- --
Investments
Unquoted Book
Value
Conclusion
Sources

https://www.thehindu.com/business/Industry/parle-g-logs-record-sales-during-
coronavirus-lockdown/article31792506.ece

https://www.indiantelevision.com/mam/marketing/mam/how-parle-g-tackled-
distribution-challenges-during-lockdown-200522

https://www.yourarticlelibrary.com/accounting/financial-statements/meaning-
financial-statements/financial-statement-analysis-meaning-objectives-and-
limitations-firm/66775

https://en.m.wikipedia.org/wiki/Parle_Products#:~:text=Parle%20Products%20co
mpany%20was%20founded,alternative%20to%20the%20British%20biscuits

https://wap.business-standard.com/company/parle-industries-14797/annual-
report/director-report