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Subject Analysis of Financial statements.

Topic- Project on Analysis of financial statements of ITC LTD. Submitted to Prof C.A Sanjay Katira.

ITC Annual Report Analysis

(FY 2011-12)

ITC Annual Report Analysis (FY 2009-10)

3/27/2014

Submitted by MMS 1st year, Div- c group no3

Team members Tejal Dhamale Tanushree Chaudari Shanilia Mulla Taher Kalyanwalla Sabah Memon Faiyz t

Roll no 16 13 39 22 34 19

Role Introduction , Financial statements . Ratios and Trend analysis. Cross sectional analysis and Notes of Financial statements . Answering Answering Answering

Flow
4

ITC Limited (BSE: 500875)

5

Public conglomerate

company.
Founded -August 24, 1910

Parameter 2011-12 2010-11 considered (in Rs. crores) (in Rs. crores)
Gross Income Net Income Total Capital employed a. Shareholder's funds b. Loan funds c. Net Deferred tax PBT 36072.59 6162.37 14957.1 31399.10 4987.61 14779.82

as Imperial Tobacco Company of India.

25.4% owned by British

corporation, British American Tobacco.

Headquartered in Kolkata,

18791.89 1072.68 872.72 8897.53

15953.27 1003.07 801.85 7268.16

India.
Chairman - Yogesh Chander

Deveshwar.

ITC Limited One of Indias most valuable and admired companies

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ITC Limited completed 100 years on 24 August

2010.
One of the foremost in the private sector in terms of :

Sustained value creation (BT-Stern Stewart survey)

Operating profits
Cash Profits

Ranks No. 4 among Indian listed Private Sector

Companies by Market Cap.

ITC also featured on the Forbes World's Most

reputable Companies List at position 95.

ITC Business Portfolio

7

FMCG
,

Cigarettes

Foods

Personal Care

Lifestyle Retailing

Education & Stationery

Matches

Incense Sticks

Hotels

Paper & Packaging

Agriculture Business

Information Technology

Segment-wise Revenue
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Segment revenue

Segment Revenue (Rs. Crores) 23232.32

13%

11%

Segment Revenue
FMCG - Cigarettes FMCG - Others Hotels

FMCG Cigarettes FMCG - Others

Hotels Agricultural business Paperboards, Paper & packaging

5563.72 1074.66 5695.31

13% 3%

Agri business

60%

Paperboards, Paper & packaging

4129.79

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ITC Annual Report Analysis (FY 2009-10)

3/27/2014

Shareholder Information
Authorised share capital- 10,00,00,00,000(F.V- Re 1/-) 7,79,42,73,319 Total shares. (77.94%) Companys market capitalization: Rs7,79,42,73,319/15

Break up of share holders

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Foreign Holdings
1% 12% 53%

34%

Govt. / Financial Institutions Corporate Bodies Other including Indian Public

Share price information

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Particulars Dividend per share Total Dividend amount Net worth per share

FY2011-12

FY 2010-11

Rs. 5.23/-

Rs.5.17/Rs. 4002crores

Rs. 4089crores

24.04

20.62

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Ratio Analysis

Financial Stability Ratios

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Particulars Current Ratio(x) Quick Ratio(x)

Mar 2012 Mar 2011

Mar 2010

Mar 2009

1.20
0.58 0.01

1.14
0.54 0.01

0.99
0.43 0.01

1.45
0.64 0.01

Total Debt/Equity(x)

Turnover Ratios
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Particulars Debtors turnover ratio (x)

Mar 2012 Mar 2011 Mar 2010 Mar 2009 22.96 21.09 21.65 19.10

Inventory turnover ratio (x)

5.75

6.12

6.15

5.34

Performance Ratios
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Particulars ROA(%)(including revaluation)

Mar 2012

Mar 2011

Mar 2010

Mar 2009

24.89

21.25

37.82

37.11

RONW(%)

32.16

30.70

28.98

23.83

ROCE(%) Asset Turnover (Times )

47.33

43.51

43.00

34.09

1.45

1.42

1.56

1.43

Profitability/Margin Ratios
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Particulars

Mar 2012 Mar 2011 Mar 2010 Mar 2009 31.08 29.55 28.47 28.37

Profit Before Interest And Tax Margin(%)

Gross Profit margin (%) PAT/Net Profit Margin (%)

32.00

30.17

29.27

28.79

22.98

22.12

20.77

20.53

Valuation Parameters
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Particulars Earnings Per Share (Rs) Dividend per share (DPS) Dividend Payout Ratio Net Profit

Mar 2012 Mar 2011 Mar 2010 Mar 2009 7.93 6.49

11.03

8.90

4.50

4.45

10.00

3.70

65.65

80.10

106.83

49.48

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Trend Analysis

Trend/Time Series Analysis

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1996-2012
Base year as 1996 Last 15 years trends gives traders and investors an idea

of what may happen in the future or what has happened in past.

Gross Income (Rs in Cr)

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Net Profit (Rs in Cr)

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Net Profit After tax

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Net Assets Employed (Rs in Cr)

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Earning and Dividend Per Share

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Growth in total assets

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Comments
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From the analysis we can see that co. is growing at steady rate and

remarkable points are : 1. We can see that companys capital is increased by 105.33%, this is because of issue of bonus shares in the year 2010-2011. This shows that the companys owned fund is increasing. 2. Reserve and Surplus is constantly increasing which shows that the companys accumulated profits is increasing at a growing rate. It shows that company is making more profit. 3. By analyzing sources of fund we can state that, company is more dependent on owners fund rather than borrowed fund.

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4. Investment is also growing at increasing rate. In last 4 years it has increased by 89.28%. 5. Current asset is increasing by 45.09%. This is due to increase in cash and bank balance other current assets. 6. Net income and expenses are increasing by 51.02% and 47.38% respectively. This shows that the income of the co. is 3.64% higher than its expenses.

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Cross sectional Analysis

Competitors
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Godfrey Philips VST Golden Tobacco

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8% 12%

8%

72%

ITC

GODFREY

VST

GTC

MARKET SHARE

Market Capitalisation (In Crores)

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250,000.00 200,000.00 150,000.00 100,000.00 50,000.00 0.00

230,298.93

2,702.54

2,358.52

41.2

ITC

GODFREY PHILIPS

VST

GOLDEN TOBACCO

Sales Turnover (in Crores)

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30,000.00 25,000.00 20,000.00 15,000.00

26,179.52

10,000.00
5,000.00 0.00 ITC GODFREY PHILIPS VST GOLDEN TOBACCO 1,911.80 475.01 69.67

Net Profit
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In crores
40,000.00
30,000.00 20,000.00 10,000.00 0.00 -10,000.00 3,386.94 36,989.72

1,125.42 -34.81
Series 1

Earning Per Share

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2010

7.88 92.3 0 174.38 ITC GODFREY PHILIPS VST GOLDEN TOBACCO

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Notes to financial statements.

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Contingent liabilities: (a) Contingent liabilities Claims against the Company not acknowledged as debts Rs 287.08 Crores (2011 - Rs 255.17 Crores). These comprise: - Excise duty, sales taxes and other indirect taxes claims disputed by the Company relating to issues of applicability and classification aggregating Rs 199.23 Crores (2011 - Rs 182.87 Crores). Local Authority taxes/cess/royalty on property, utilities etc. claims disputed by the Company relating to issues of applicability and determination aggregating Rs 47.35 Crores (2011 - Rs 33.83 Crores). Third party claims arising from disputes relating to contracts aggregating Rs 37.26 Crores (2011 - Rs 35.08 Crores). - Other matters Rs 3.24 Crores (2011 - Rs 3.39 Crores).

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Commitments - Estimated amount of contracts remaining to be

executed on capital accounts and not provided for Rs 2246.53 Crores (2011 - Rs 1976.62 Crores). - Uncalled liability on shares partly paid Rs 26.40 Crores (2011).- Rs 26.40 Crores)
Research and Development expenses for the year amount to Rs 87.84

Crores (2011- Rs 90.24 Crores)

ITC Annual Report Analysis (FY 2009-10)

3/27/2014

References
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http://itcportal.com/about-itc/shareholder-value/annual-

reports/itc-annual-report-2012/report-and-accounts.aspx
http://en.wikipedia.org/wiki/ITC_Limited http://www.moneycontrol.com/annual-report/itc/notes-to-

account/ITC#ITC
http://www.moneyworks4me.com/

http://economictimes.indiatimes.com/itc-

ltd/stocks/companyid-13554.cms

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Merci
Before you can really start setting financial goals, you need to determine where you stand financially. David Bach