GODREJ INDUSTRIES LTD.

HISTORY

 Godrej Industries is one of the Godrej Group's holding companies. Its own businesses
comprises of chemicals estate management and Finance & Investments. Its chemical
division manufactures and markets a wide range of oleochemical products derived from
organic materials. The product portfolio under the chemicals division includes Fatty
Alcohols Fatty Acids Surfactants Glycerine and Specialty Products.

 These products are used as raw materials in the home and personal care pharmaceutical
and food industries. The chemical division's manufacturing facilities are located at Valia
in Gujarat and Ambernath in Maharashtra.Godrej Industries (GIL) has significant interest
in consumer goods real estate agriculture and gourmet retail through subsidiary and
associate companies across 18 countries The company owns 23.8% stake (as on 31
March 2018) in Godrej Consumer Products which an FMCG company. GIL owns 56.7%
stake (as on 31 March 2018) in real estate development firm Godrej Properties. GIL
owns 58% stake (as on 31 March 2018) in Godrej Agrovet which a diversified agri-
business company. It holds 100% stake in Nature's Basket which operates fresh good and
gourmet store under the Nature's Basket brand.

ABOUT:

 Godrej Industries Ltd was incorporated in the year 1988 as Gujarat-Godrej Innovative
Chemical Ltd. Godrej Soaps Ltd was amalgamated with the company with effect from
April 1 1994 and the name was changed to Godrej Soaps Ltd. During the year 1994-95
the company acquired majority stake holding in Transelektra Domestic Products Ltd the
largest manufacturer of mosquito mats in the world.

COMPANY PROFILE:

 In April 1995 they entered into a joint venture and technical assistance agreements with
Siat SA a Belgian company and formed Godrej Oil Palm Konkan Ltd for Oil Palm
Plantations business. During the year 1995-96 the company entered into an agreement
with Sara Lee DE/NV for securing an equity participation of Sara Lee in Transelektra.
 They set up new ultra modern toilet soap finishing lines of 48 TPD capacity each at
Vikhroli and Malanpur factories. Also they set up sophisticated Fatty Acid Distillation
Plant of 75 TPD capacity at Vikhroli factory.During the year 1996-97 Ensemble
Holdings & Finance Ltd became a subsidiary of the company.

 The consumer products division of the company has been de-merged and a new
company was formed namely Godrej Consumer Products Ltd with effect from April 1
2001. As a part of the scheme of de-merger the name of the company was changed from
Godrej Soaps Ltd to Godrej Industries Ltd. During the year 2001-02 the Foods Division
ventured into products catering to the needs of bakeries through their Himgiri Zesta Puff
brands of bakery shortening and Margarine.

 MISSION Enriching quality of life everyday, everywhere

 VISION Godrej In every home and workplace

PROFIT AND LOSS ACCOUNT

Standalone Profit & Loss

------------------- in Rs. Cr. ------------------
account

Mar '22 Mar '21 Mar '20 Mar '19 Mar '18

12 mths 12 mths 12 mths 12 mths 12 mths

Income

Sales Turnover 3,339.60 1,855.53 1,968.72 2,144.37 1,986.32

Excise Duty 0.00 0.00 0.00 0.00 27.99

Net Sales 3,339.60 1,855.53 1,968.72 2,144.37 1,958.33

Other Income 10.60 66.08 33.35 -202.28 300.53

Stock Adjustments 74.27 77.24 -6.95 -7.65 -13.29

Total Income 3,424.47 1,998.85 1,995.12 1,934.44 2,245.57

Expenditure

Raw Materials 2,421.63 1,376.78 1,199.65 1,299.49 1,297.78

Power & Fuel Cost 0.00 89.38 96.20 93.72 90.50

Employee Cost 168.64 136.00 145.74 130.17 133.55

Selling and Admin Expenses 0.00 1.13 7.40 1.62 1.80

Miscellaneous Expenses 439.69 192.71 219.79 217.59 184.56

Total Expenses 3,029.96 1,796.00 1,668.78 1,742.59 1,708.19

Mar '22 Mar '21 Mar '20 Mar '19 Mar '18

12 mths 12 mths 12 mths 12 mths 12 mths

Operating Profit 383.91 136.77 292.99 394.13 236.85

PBDIT 394.51 202.85 326.34 191.85 537.38

Interest 363.90 237.51 228.99 239.59 212.43

PBDT 30.61 -34.66 97.35 -47.74 324.95

Depreciation 74.80 72.18 68.62 54.30 68.58

Profit Before Tax -44.19 -106.84 28.73 -102.04 256.37

PBT (Post Extra-ord Items) -44.19 -106.84 28.73 -102.04 256.37

Tax 0.00 -0.06 -0.12 -0.07 15.25

Reported Net Profit -44.19 -107.54 30.81 -101.37 241.40

Total Value Addition 608.33 419.22 469.13 443.10 410.41

Equity Dividend 0.00 0.00 0.00 58.87 58.85

Corporate Dividend Tax 0.00 0.00 0.00 1.78 1.15

Per share data (annualised)

Shares in issue (lakhs) 3,366.00 3,365.25 3,364.66 3,363.84 3,362.73

Earning Per Share (Rs) -1.31 -3.20 0.92 -3.01 7.18

Equity Dividend (%) 0.00 0.00 0.00 115.00 175.00

Balance Sheet

Standalone Balance Sheet ------------------- in Rs. Cr. -------------------

Mar '22 Mar '21 Mar '20 Mar '19 Mar '18

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds

Total Share Capital 33.66 33.66 33.65 33.64 33.63

Equity Share Capital 33.66 33.66 33.65 33.64 33.63

Share Application Money 0.00 3.56 4.31 5.69 0.00

1,449.5
Reserves 1,489.08 1,592.68 1,603.65 1,766.93
6
 1,483.2
Net worth 1,526.30 1,630.64 1,642.98 1,800.56
2

6,160.1
Secured Loans 4,295.47 2,813.29 2,911.58 0.61
0

Unsecured Loans 0.00 0.00 0.00 0.00 2,087.63

6,160.1
Total Debt 4,295.47 2,813.29 2,911.58 2,088.24
0

7,643.3
Total Liabilities 5,821.77 4,443.93 4,554.56 3,888.80
2

Mar '22 Mar '21 Mar '20 Mar '19 Mar '18

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds

1,784.4
Gross Block 2,077.92 1,736.25 1,685.35 1,649.88
4

Less: Accum. Depreciation 0.00 308.23 253.06 202.58 156.00

1,784.4
Net Block 1,769.69 1,483.19 1,482.77 1,493.88
4

Capital Work in Progress 0.00 72.83 17.95 8.72 7.66

5,526.6
Investments 3,998.20 2,613.92 2,705.21 2,828.22
6
Inventories 632.05 410.54 253.84 300.86 299.91

Sundry Debtors 400.28 249.72 199.91 179.23 117.89

Cash and Bank Balance 153.90 118.09 343.58 514.84 61.79

1,186.2
Total Current Assets 778.35 797.33 994.93 479.59
3

Loans and Advances 191.96 134.18 109.25 121.27 160.86

1,378.1
Total CA, Loans & Advances 912.53 906.58 1,116.20 640.45
9

1,023.1
Current Liabilities 911.83 560.27 744.74 1,069.54
1

Provisions 22.86 19.65 17.44 13.60 11.87

1,045.9
Total CL & Provisions 931.48 577.71 758.34 1,081.41
7

Net Current Assets 332.22 -18.95 328.87 357.86 -440.96

7,643.3
Total Assets 5,821.77 4,443.93 4,554.56 3,888.80
2

Contingent Liabilities 0.00 189.09 348.31 313.50 166.22

CAPITAL STRUCTURE : ( DEBT AND EUITY)

YEAR 2021-2022 2020-2021 2019-2020
SOURC
E OF AMOU PERCENTA AMOU PERCENTA AMOU PERCENTA
FUND NT GE NT GE NT GE
DEBT 6160.1 99.45654982 4295.47 99.22247657 2813.29 98.81802918
EQUIT
Y 33.66 0.543450182 33.66 0.777523428 33.65 1.181970818
TOTAL
CAPIT
AL 6193.76 100 4329.13 100 2846.94 100

INTERPRETATION

 In year 2020 debt 98% and equity 1.18% but in 2021 debt 99% and equity 0.77% it
shows the company entered into the cheapest source of finance.
 Because debt is the cheapest source of finance when compared to equity .
 In year 2022 debt is increase then equity so it was conservative. In year 2021 debt is
higher than the equity so it was aggressive . In year 2022 higher than equity so it was
aggressive .

YEAR 2021 2020 2019

EBIT 202.85 325.34 191.85
INTEREST 237.51 228.99 239.59
DIVIDEND 0 0 58.87
TAX -0.06 -0.12 -0.12
1855.5 1968.7
SALES 3 2 2144.37
VARIABLE COST 90.51 103.6 92.34

NO .OF .SHARES 33.66 33.65 33.64

 5821.7 4443.9
TOTAL INCOME 7 3 4554.56

EQUATION AMOUNT

EBIT *****

LESS INTEREST *****

EBT *****

LESS TAX *****

EAT *****

LESS DIVIDEND *****

PROFIT AVILABLE IN SHARE *****

CONTRIBUTION=SALES-VARIABLE COST *****

EPS=NET INCOME/NO OF SHARE *****

FINANCIAL LEVERAGE=EBIT/EBT *****

OPERATING LEVERAGE=CONTRIBUTION/EBIT *****

COMBINED LEVERAGE=

FINANCIAL LEVERAGE*OPERATING LEVERAGE *****

 YEAR 2020
EBIT 326.34
LESS INTEREST 228.99
YEAR
EBT 97.35
LESS TAX -0.12 2021
EBIT
EAT -97.23 202.85
LESS INTEREST
LESS DIVIDEN 0 237.51
EBT
PROFIT AVAILABLE IN SHARE -34.66
LESS TAX
HOLDERS -97.23 -0.06
EAT
CONTRIBUTION 1865.12 34.72
LESS
EPSDIVIDENT 132.0632987 0
PROFIT AVAILABLE
FINANCIAL IN SHARE HOLDERS
LEVERAGE 2.471087753 34.72
CONTRIBUTION
OPERATING LEVERAGE 5.715266287 1765.02
EPS
COMBINED LEVERAGE 14.12292453 172.9581105
FINANCIAL LEVERAGE 1.172827336
OPERATING LEVERAGE 8.701109194
COMBINED LEVERAGE 10.20489872

YEAR 2019
EBIT 191.85
LESS INTEREST 239.59
EBT -47.74
LESS TAX -0.12
 EAT 47.86
LESS DIVIDEND 58.87
PROFIT AVAILABLE IN SHARE
HOLDERS -11.01
CONTRIBUTION 2052.03
EPS 135.391201
FINANCIAL LEVERAGE 1.417004936
OPERATING LEVERAGE 10.69601251
COMBINED LEVERAGE 15.15630252

INTERPRETATION:

 TOTAL INCOME : In year 2019 5821.77 in year 2020 4443.93 and in year 2021
4554.56.
 Here total income was decreased on year 2020 4443.93 and then increased in yr 2019.
 This was due to various reason the main reason was corona during the corona period.
 By seeing of total income it was good company.

RETAINED EARNINGS:

 Retained earnings of Godrej in year 2020 48286 in year 2019 51215.70 and in year
2021 36585.00.
 Here the retained earning was decreased year by year it is good one for the firm
because develop of firm.

EPS:

 Eps was decreased year by year because retained earnings decreased .

 This company have both debt and equity therefore it has leverage , like financial,
operating and combined leverage.
 Financial leverage ,operating leverage and combined leverage , of Godrej
increase year on 2019 to 2020.

Conclusion:
From the capital structure analysis we conclude that debt increases and equity decrease year
on year it shows the company entered into the cheapest source of finance .and also EPS also
decreased and retained earnings also decreased year on year it leads to develop the company
and also company value its share value increase.

REFERENCE:

 https://en.wikipedia.org/wiki/Godrej_Group
 https://www.moneycontrol.com/financials/godrejindustries/balance-sheetVI/GI23