Académique Documents
Professionnel Documents
Culture Documents
PGDM 2014-2016
Term:
Course Name:
Topic/ Title :
9873201218/Ankush Kunzru
Sl.
1
2
3
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Roll No.
140102065
140101026
140103066
140101139
140101144
140103166
140103169
Name
Krishna Ravi Shankar Karanam
Ankush Kunzru
Harneet Singh Bahri
Saiyam Arora
Sanchita Krishna
Sudheshna Sampathkumar
Suneet Raj Gantayat
INDEX
Acknowledgement .................................................................................................................................. 3
1.
2.
SWOT snapshot:............................................................................................................................ 4
3.
a.
Strengths ........................................................................................ 5
b.
Weakness ....................................................................................... 5
c.
Opportunity ................................................................................... 6
d.
Threats ........................................................................................... 6
4.
a.
iii.
b.
Horizontal Analysis...................................................................................................................... 10
Acknowledgement
We would like to take this opportunity to express our sincere thanks and
regards to our Professor, Puja Aggarwal, for her exceptional guidance
throughout the project as well during the course of the subject Financial
Reporting and Analysis(FRA). Her teachings shall remain deeply rooted
within us and will help us in all our endeavors.
We would like to thank all the department point of contacts and students
who took precious time out of their busy schedules and helped us in this
project by providing relevant information.
Last but not the least, we would like to thank friends and family of all of
us who directly or indirectly helped us to complete this project report.
It goes without saying that we do not mean lack of gratitude for those,
whom we may have omitted in this brief acknowledgement.
Sl.
1
2
3
4
5
6
7
Roll No.
140102065
140101026
140103066
140101139
140101144
140103166
140103169
Name
Krishna Ravi Shankar Karanam
Ankush Kunzru
Harneet Singh Bahri
Saiyam Arora
Sanchita Krishna
Sudheshna Sampathkumar
Suneet Raj Gantayat
1. Company Introduction:
The company was officially formed in 2000, but its operations date back
to 1922. With 19 coffee estates in southern India, the company is
arguably one of the largest manufacturers and is the second exporter of
coffee. The company has won several awards for its social initiatives.
Quick Facts
Revenue
INR 650.92
Profit(PAT) -
Production -
Cultivated land -
8037 hectares
2. SWOT snapshot:
Strengths
Weakness
Brand value
Weather dependence
Strong presence
Major environmental
challenges in Brazil
Exclusive partnerships
Largest integrated coffee
business in the world
Opportunities
New markets exploration
Market competition
consolidation
No significant competitor
in India
Potential for growth with
introduction of state of the
art machinery
Rain water harvesting
Price-demand fluctuations
Fall in harvested crop
Threats
Dumping in international
market
ForEx loss
Workforce issues
Crop diseases
3.
a.
SWOT - Analysis
Strengths
Tata Coffee enjoys a good brand value which is boosted by several
international standardizations for quality and its processes
b.
Weakness
Significant dependence on Indian temperature conditions and
rainfall for growing the product. The product quality gets affected
and becomes prone to diseases with a variance in temperature
Significant environmental challenges in Brazil has lead to a
degradation of the soil quality leading to significant fall in current
and potential future production levels
Reduction in output in the last financial year lead to a deficit
situation in the Closing stock value(buffer stock) across the market
in Brazil. This lead to a significant rise in the prices of the Arabica
beans, adversely affecting demand
Poorer production levels due to poor rainfalls in the past year in
India to the tune of 30%
c.
Opportunity
Expansion into new markets like the middle east will lead to better
business prospects, revenue and eventually profits
With a significant increase in the price in the coffee beans in Brazil
there has been a reduction in competition in instant coffee
business due to their lack of ability to stay afloat
Potential for growth with the introduction of state of the art
machinery at Kushalnagar plant for coffee curing which has
brought about better efficiency
The company has started rain water harvesting projects to help
bridge the gap between water available vs water required.
d.
Threats
Dumping from Ecuadorian players leading to market loss in
certain countries
As Tata Coffee works across several geographies and its
transactions Dependency on dollar valuation for profitability(INR
31 Lakhs)
The company faces a ever rising challenge of lack of skilled
workers. To the add to the aging of the existing labour is a concern
point for future operations
Threat to output with rising White stem borer incidents in
Arabica crop due to changing weather in the Coorg district, which
is one of the largest plantations for Tata Coffee
4.
Ratio Analysis
Ratio analysis is a tool which helps in making comparisons and
draw relationships between components of financial statements.
a.
Profitability ratio
i. Net Profit Ratio:
Measures the amount of net profit earned per each rupee of
revenue
Ratio
Formula
ii.
Formula
Operating profit
ratio
EBIT/Net
revenue from
Operations
2013
23.53%
Formula
Return on
equity
2013
PAT/Shareholders 17.65%
fund
2012
22.68%
2012
17.87%
Ratio
Formula
Return on
capital
employed
v.
15.67%
Return on equity
Ratio
iv.
16.37%
2012
Ratio
iii.
PAT/Net
revenue from
Ops
2013
2013
EBIT/Shareholders 24.01%
fund + Long term
borrowings
2012
23.87%
Ratio
Return on total
assets
Formula
PAT/Total
Assets
2013
12.06%
2012
11.74%
b.
Liquidity Ratio
i.
Current ratio
Ratio
Formula
Current ratio
ii.
Current
Assets/Current
Liabilities
Formula
Return on total
assets
1.71:1
PAT/Total
Assets
2013
1.03:1
2012
0.9:1
Solvency Ratio
i.
Ratio
Formula
Return on total
assets
ii.
PAT/Total
Assets
2013
1.03:1
2012
0.9:1
Operating coverage
Ratio
Formula
Interest
coverage ratio
d.
2.01:1
2012
Liquid ratio
Ratio
c.
2013
EBIT/Interest
obligation
2013
31.17:1
2012
29.82:1
Turnover Ratio
i.
Ratio
Formula
Inventory
turnover ratio
ii.
COGS/Avg.
Inventory
2013
1.08:1
2012
1.29:1
Ratio
Inventory
holding period
Formula
365/ITR
2013
2012
338.2 days
283.1 days
5.
Vertical Analysis
i.
Balance Sheet
Particulars
31-Mar-13 Percentage
Liabilities
31-Mar-12
Percentage
1867.7
50577.64
52445.34
2.34%
63.36%
65.70%
1867.7
43858.02
45725.72
2.84%
66.79%
69.63%
4411.87
721.79
5.53%
0.90%
2416.8
1056
3.68%
1.61%
168.2
2390.48
7692.34
0.21%
2.99%
9.64%
149.02
1521.1
5142.92
0.23%
2.32%
7.83%
5530.66
2913.73
6814.42
4431.62
19690.43
79828.11
6.93%
3.65%
8.54%
5.55%
24.67%
100.00%
1662.27
1237.8
6811.41
5086.13
14797.61
65666.25
2.53%
1.88%
10.37%
7.75%
22.53%
100.00%
24211.9
5384.29
14563.44
30.33%
6.74%
18.24%
22912.36
228.67
14564.09
34.89%
0.35%
22.18%
1999.76
8.49
46168.5
2.51%
0.01%
57.83%
4180.77
19.03
41904.94
6.37%
0.03%
63.82%
15920.44
4959.95
2655.33
19.94%
6.21%
3.33%
12395.28
4434.72
1407.05
18.88%
6.75%
2.14%
10189.22
234.67
33659.61
79828.11
12.76%
0.29%
42.17%
100.00%
5416.91
107.35
23761.31
65666.25
8.25%
0.16%
36.18%
100.00%
Assets
Non Current Assets
Fixed Assets
Capital Work In Progress
Non Current Investments
Long Term Loans And
Advances
Other Non Current Asset
Current Assets
Inventories
Trade Receivables
Cash And Bank Balances
Short Term Loans And
Advances
Other Non Current Assets
Total Asset
6.
Horizontal Analysis
i. Balance Sheet
Particulars
31-Mar-13
Liabilities
31-Mar-12
Change
YoY
% change
YoY
1867.7
50577.64
52445.34
1867.7
43858.02
45725.72
0
6719.62
6719.62
0.00%
15.32%
14.70%
4411.87
721.79
168.2
2390.48
7692.34
2416.8
1056
149.02
1521.1
5142.92
1995.07
-334.21
19.18
869.38
2549.42
82.55%
-31.65%
12.87%
57.15%
49.57%
5530.66
2913.73
6814.42
4431.62
19690.43
79828.11
1662.27
1237.8
6811.41
5086.13
14797.61
65666.25
3868.39
1675.93
3.01
-654.51
4892.82
14161.86
232.72%
135.40%
0.04%
-12.87%
33.06%
21.57%
24211.9
5384.29
14563.44
22912.36
228.67
14564.09
1299.54
5155.62
-0.65
5.67%
2254.61%
0.00%
1999.76
8.49
46168.5
4180.77
19.03
41904.94
-2181.01
-10.54
4263.56
-52.17%
-55.39%
10.17%
15920.44
4959.95
2655.33
12395.28
4434.72
1407.05
3525.16
525.23
1248.28
28.44%
11.84%
88.72%
10189.22
234.67
33659.61
79828.11
5416.91
107.35
23761.31
65666.25
4772.31
127.32
9898.3
14161.86
88.10%
118.60%
41.66%
21.57%
Assets
Non Current Assets
Fixed Assets
Capital Work In Progress
Non Current Investments
Long Term Loans And
Advances
Other Non Current Asset
Current Assets
Inventories
Trade Receivables
Cash And Bank Balances
Short Term Loans And
Advances
Other Non Current Assets
Total Asset