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SubjectAnalysis of Financial statements.

Topic- Project on Analysis of financial

statements of ITC LTD.

Submitted toProf C.A Sanjay Katira.

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ITC AnnualReport

Analysis(FY 2011-12)

3/27/2014

2

ITC Annual Report Analysis (FY 2009-10)

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Submitted by MMS 1styear, Div- c

group no-3

Team members Roll no Role

Tejal Dhamale 16Introduction , Financial

statements .

Tanushree Chaudari 13

Ratios and Trend

analysis.

Shanilia Mulla 39

Cross sectional

analysis and Notes of

Financial statements .

Taher Kalyanwalla 22 Answering

Sabah Memon 34 Answering

Faiyz t 19 Answering

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4

Flow

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ITC Limited(BSE: 500875)

5

Public conglomerate

company.

Founded-August 24, 1910

as Imperial Tobacco

Company of India.

25.4% owned by British

corporation, British American

Tobacco.

Headquartered in Kolkata,India.

Chairman -Yogesh Chander

Deveshwar.

Parameter

considered

2011-12

(in Rs. crores)

2010-11

(in Rs. crores)

Gross Income 36072.59 31399.10

Net Income 6162.37 4987.61

Total Capital

employed14957.1 14779.82

a. Shareholder's

funds18791.89 15953.27

b. Loan funds 1072.68 1003.07

c. Net Deferred

tax872.72 801.85

PBT 8897.53 7268.16

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ITC Limited

One of Indias most valuable and admired companies6

ITC Limited completed 100 years on 24 August2010.

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 Mostreputable Companies List at position 95.

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FMCG,

Paper &PackagingHotels AgricultureBusiness InformationTechnology

Cigarettes Personal CareFoods Lifestyle Retailing

Education & Stationery Matches Incense Sticks

ITC Business Portfolio7

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Segment-wise Revenue8

Segment

revenue

Segment

Revenue

(Rs. Crores)

FMCG -Cigarettes 23232.32

FMCG - Others 5563.72

Hotels 1074.66

Agricultural

business5695.31

Paperboards,

Paper &

packaging

4129.79

60%13%

3%

13%

11%

Segment Revenue

FMCG - Cigarettes

FMCG - Others

Hotels

Agri business

Paperboards, Paper &

packaging

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3/27/2014ITC Annual Report Analysis (FY 2009-10)

14

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Shareholder Information15

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/-

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Break up of share holders16

53%34%

1%

12%

Foreign Holdings

Govt. / FinancialInstitutions

Corporate Bodies

Other including

Indian Public

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Share price information17

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Particulars FY2011-12 FY 2010-11

Dividend per

share

Rs. 5.23/- Rs.5.17/-

Total Dividend

amountRs. 4089crores

Rs. 4002crores

Net worth per

share24.04 20.62

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Ratio Analysis

19

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Financial Stability Ratios20

Particulars Mar 2012 Mar 2011 Mar 2010 Mar 2009

CurrentRatio(x) 1.20 1.14 0.99 1.45

Quick Ratio(x) 0.58 0.54 0.43 0.64

Total

Debt/Equity(x)

0.01 0.01 0.01 0.01

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Turnover Ratios21


Debtors

turnover

ratio (x)

22.96 21.09 21.65 19.10

Inventory

turnoverratio (x)

5.75 6.12 6.15 5.34

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Performance Ratios22


ROA(%)(including

revaluation)24.89 21.25 37.82 37.11

RONW(%) 32.16 30.70 28.98 23.83

ROCE(%) 47.33 43.51 43.00 34.09

Asset Turnover

(Times )1.45 1.42 1.56 1.43

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Profitability/Margin Ratios23


Profit Before

Interest And Tax

Margin(%)

31.08 29.55 28.47 28.37

Gross Profit

margin (%)32.00 30.17 29.27 28.79

PAT/Net Profit

Margin (%)22.98 22.12 20.77 20.53

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Valuation Parameters24


Earnings Per

Share (Rs)7.93 6.49 11.03 8.90

Dividend per

share (DPS)4.50 4.45 10.00 3.70

Dividend

Payout Ratio

Net Profit

65.65 80.10 106.83 49.48

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Trend Analysis

25

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Trend/Time Series Analysis26

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.

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Gross Income (Rs in Cr)27

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Net Profit (Rs in Cr)28

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Net Profit After tax29

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Net Assets Employed (Rs in Cr)30

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Earning and Dividend Per Share31

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Growth in total assets32

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Comments33

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

35

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Competitors36

Godfrey Philips

VST

Golden Tobacco

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72%

12%

8%8%

MARKET SHARE

ITC GODFREY VST GTC

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Market Capitalisation (In Crores)38

0.00

50,000.00

100,000.00

150,000.00

200,000.00

250,000.00

ITC GODFREY PHILIPS

VST GOLDENTOBACCO

230,298.93

2,702.542,358.52 41.2

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Sales Turnover (in Crores)39

0.00

5,000.00

10,000.00

15,000.00

20,000.00

25,000.00

30,000.00

ITC GODFREY PHILIPS

VST GOLDENTOBACCO

26,179.52

1,911.80 475.01 69.67

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Net Profit40

-10,000.00

0.00

10,000.0020,000.00

30,000.00

40,000.0036,989.72

3,386.94 1,125.42

-34.81

In crores

Series 1

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Earning Per Share41

7.88

174.38

92.3 0

2010

ITC

GODFREY PHILIPS

VST

GOLDEN TOBACCO

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Notes to financial statements.

42

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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 applicabilityand 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 33.83Crores).

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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3/27/2014ITC Annual Report Analysis (FY 2009-10)

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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)

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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
http://itcportal.com/about-itc/shareholder-value/annual-reports/itc-annual-report-2012/report-and-accounts.aspxhttp://itcportal.com/about-itc/shareholder-value/annual-reports/itc-annual-report-2012/report-and-accounts.aspxhttp://en.wikipedia.org/wiki/ITC_Limitedhttp://www.moneycontrol.com/annual-report/itc/notes-to-account/ITChttp://www.moneycontrol.com/annual-report/itc/notes-to-account/ITChttp://www.moneyworks4me.com/http://economictimes.indiatimes.com/itc-ltd/stocks/companyid-13554.cmshttp://economictimes.indiatimes.com/itc-ltd/stocks/companyid-13554.cmshttp://economictimes.indiatimes.com/itc-ltd/stocks/companyid-13554.cmshttp://economictimes.indiatimes.com/itc-ltd/stocks/companyid-13554.cmshttp://economictimes.indiatimes.com/itc-ltd/stocks/companyid-13554.cmshttp://economictimes.indiatimes.com/itc-ltd/stocks/companyid-13554.cmshttp://economictimes.indiatimes.com/itc-ltd/stocks/companyid-13554.cmshttp://www.moneyworks4me.com/http://www.moneycontrol.com/annual-report/itc/notes-to-account/ITChttp://www.moneycontrol.com/annual-report/itc/notes-to-account/ITChttp://www.moneycontrol.com/annual-report/itc/notes-to-account/ITChttp://www.moneycontrol.com/annual-report/itc/notes-to-account/ITChttp://www.moneycontrol.com/annual-report/itc/notes-to-account/ITChttp://www.moneycontrol.com/annual-report/itc/notes-to-account/ITChttp://www.moneycontrol.com/annual-report/itc/notes-to-account/ITChttp://en.wikipedia.org/wiki/ITC_Limitedhttp://en.wikipedia.org/wiki/ITC_Limitedhttp://itcportal.com/about-itc/shareholder-value/annual-reports/itc-annual-report-2012/report-and-accounts.aspxhttp://itcportal.com/about-itc/shareholder-value/annual-reports/itc-annual-report-2012/report-and-accounts.aspxhttp://itcportal.com/about-itc/shareholder-value/annual-reports/itc-annual-report-2012/report-and-accounts.aspxhttp://itcportal.com/about-itc/shareholder-value/annual-reports/itc-annual-report-2012/report-and-accounts.aspxhttp://itcportal.com/about-itc/shareholder-value/annual-reports/itc-annual-report-2012/report-and-accounts.aspxhttp://itcportal.com/about-itc/shareholder-value/annual-reports/itc-annual-report-2012/report-and-accounts.aspxhttp://itcportal.com/about-itc/shareholder-value/annual-reports/itc-annual-report-2012/report-and-accounts.aspxhttp://itcportal.com/about-itc/shareholder-value/annual-reports/itc-annual-report-2012/report-and-accounts.aspxhttp://itcportal.com/about-itc/shareholder-value/annual-reports/itc-annual-report-2012/report-and-accounts.aspxhttp://itcportal.com/about-itc/shareholder-value/annual-reports/itc-annual-report-2012/report-and-accounts.aspxhttp://itcportal.com/about-itc/shareholder-value/annual-reports/itc-annual-report-2012/report-and-accounts.aspxhttp://itcportal.com/about-itc/shareholder-value/annual-reports/itc-annual-report-2012/report-and-accounts.aspxhttp://itcportal.com/about-itc/shareholder-value/annual-reports/itc-annual-report-2012/report-and-accounts.aspxhttp://itcportal.com/about-itc/shareholder-value/annual-reports/itc-annual-report-2012/report-and-accounts.aspxhttp://itcportal.com/about-itc/shareholder-value/annual-reports/itc-annual-report-2012/report-and-accounts.aspxhttp://itcportal.com/about-itc/shareholder-value/annual-reports/itc-annual-report-2012/report-and-accounts.aspxhttp://itcportal.com/about-itc/shareholder-value/annual-reports/itc-annual-report-2012/report-and-accounts.aspx

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er iBefore you can really start setting financial goals youneed to determine where you stand financially.

David Bach

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Final ITC (1)