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A

Research Project

On
“TO STUDY IMPACT OF LONG TERM FINANCIAL PERFORMANCE ON
PROFITABILITY OF TOP FIVE FMCG COMPANIES (HUL, NESTLE, ITC,
DABUR, P&G) FOR LAST FIVE YEARS”

Submitted to:
Kurukshetra University, Kurukshetra
In the partial fulfillment of the Degree of Master of Business Administration
(Session 2017-19)

Submitted To: Submitted by:


Kurukshetra University Palak
Kurukshetra College Roll No-2017026
Univ. Roll No………….

SETH JAI PRAKASH MUKAND LAL INSTITUTE


OF ENGINEERING AND TECHNOLOGY
(Approved by AICTE, Affiliated to Kurukshetra University, Kurukshetra)

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DECLARATION

I, Palak , Roll no. 2016017, MBA (Semester IV) of the Seth Jai Parkash Mukand
Lal Institute of Management and Technology, hereby declared that the research
Project entitled “To Study Impact Of Long Term Financial Performance On
Profitability of Top Five FMCG Companies (HUL, NESTLE, ITC, DABUR,
P&G) For Last Five Years” prepared by me and submitted in partial fulfillment of
the requirement for the degree of Master of Business Administration from
Kurukshetra University.

This work done by me and the information provided in the study is authentic to the
best of any knowledge. This study has not been submitted to any other instruction or
university for the award of any other degree.

(Palak )

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SETH JAI PARKASH MUKAND LAL INSTITUTE OF
ENGINEERING & TECHNOLOGY
A SELF FINANCED ISO 9001:2008 CERTIFIED INSTITUTE

(APPROVED BY AICTE& AFFILIATED TO KURUKSHETRA UNIVERSITY,


KURUKSHETRA)

(CHHOTA BAANS), RADAUR – 135133 (YAMUNANAGAR)

// TO WHOM SO EVER IT MAY CONCERN//

This is to certify that Palak S/o Mr. bearing Roll No.


………………….. University Registration No. 12-LI-200 and class Roll No.
2017026 a bonafide student of MBA (4th semester), has completed her work on
Research Project (CP-402) entitled “To Study Impact Of Long Term Financial
Performance On Profitability of Top Five FMCG Companies (HUL, NESTLE,
ITC, DABUR, P&G) For Last Five Years” under my supervision.
His work is original, satisfactory and fit for the purpose of further evaluation towards
the partial fulfillment for the award to the degree of Master’s Business
Administration.

Ms. Jaspreet Kaur


(Assistant Professor)
MBA Department

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ACKNOWLEGEMENT

With immense pleasure I acknowledgement my gratitude to all persons whose


guidance have helped me in carrying out this project work.

I take this opportunity to express my profound sense of sincere and deep gratitude to
Ms. Jaspreet Kaurmy mentor her constant supervision and above all extraordinary
encouragement during the entire course of the project.

It is my proud privilege to express my profound gratitude to the Head of Department


Ms. Anuja Goel (H.O.D.) and the entire faculty of department, Seth Jai Prakash
Mukand Lal Institute of Management And Technology and teachers of department for
providing me with opportunity to avail the excellent facilities and infrastructure. The
Knowledge and values inculcated have proved to be of immense help at very start of
my career.

I would like to express my gratitude to all my friends for their invaluable support and
co-operation during the course of the project.

Last but not the least I would express my gratitude to all the members of JMIT from
whom I got all the necessary help whenever required.

(Palak )

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CONTENTS

Sr. NO. Particulars Page No.

Declaration
Certificate
Acknowledgement
INTRODUCTION
Chapter – 1 1.1 Introduction the Industry
1.2 Introduction to the Company
1.3 Introduction to the Topic

Chapter – 2 Literature Review

Chapter – 3 Research Methodology


3.1 Objectives
3.2 Research Design
3.3 Data Source

Chapter – 4 Data analysis and Interpretation

Chapter – 5 5.1 Findings of Study


5.2 Suggestions
5.3 Limitations of Study
5.4 Conclusion

Chapter – 6 Annexure
Bibliography

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INDUSTRY PROFILE

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INTRODUCTION TO FMCG INDUSTRY

The Fast Moving Consumer Goods (FMCG) industry in India is one of the largest
sectors in the country and over the years has been growing at a very steady pace. The
sector basically consists of consumer non-durable products.

The Fast Moving Consumer Goods (FMCG) industry in India is one of the largest
sectors in the country and over the years has been growing at a very steady pace. The
sector consists of consumer non-durable products which broadly consists, personal
care, household care and food & beverages. The Indian FMCG industry is largely
classified as organised and unorganised. This sector is also buoyed by intense
competition. Besides competition, this industry is also marked by a robust distribution
network coupled with increasing influx of MNCs across the entire value chain. This
sector continues to remain highly fragmented.

Industry Classification

The FMCG industry is volume driven and is characterised by low margins. The
products are branded and backed by marketing, heavy advertising, slick packaging
and strong distribution networks. The FMCG segment can be classified under the
premium segment and popular segment. The premium segment caters mostly to the
higher/upper middle class which is not as price sensitive apart from being brand
conscious. The price sensitive popular or mass segment consists of consumers
belonging mainly to the semi-urban or rural areas who are not particularly brand
conscious. Products sold in the popular segment have considerably lower prices than

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their premium counterparts. Following are the segment-wise product details along
with the major players:

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COMPANY PROFILE

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COMPANY PROFILE

Hindustan Unilever

Hindustan Unilever Limited (HUL) is India's largest consumer goods company based
in Mumbai, Maharashtra. It is owned by the British-Dutch company Unilever which
controls 52% majority stake in HUL. Its products include foods, beverages, cleaning
agents and personal care products.

HUL was formed in 1933 as Lever Brothers India Limited and came into being in
1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan
Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered
in Mumbai, India and has an employee strength of over 16,500 employees and
contributes to indirect employment of over 65,000 people. The company was renamed
in June 2007 as “Hindustan Unilever Limited”.

Lever Brothers started its actual operations in India in the summer of 1888, when
crates full of Sunlight soap bars, embossed with the words "Made in England by
Lever Brothers" were shipped to the Kolkata harbour and it began an era of marketing
branded Fast Moving Consumer Goods (FMCG).

Hindustan Unilever's distribution covers over 2 million retail outlets across India
directly and its products are available in over 6.4 million outlets in the country. As per
Nielsen market research data, two out of three Indians use HUL products.

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Nestlé
Nestlé S.A. a Swiss multinational nutritional and health-related consumer
goods company headquartered in Vevey, Switzerland. It is the largest food company
in the world measured by revenues. Nestlé's products include baby food, bottled
water, breakfast cereals, coffee, confectionery, dairy products, ice cream, pet
foods and snacks. 29 of Nestlé's brands have annual sales of over 1 billion Swiss
francs (about $ 1.1 billion), including Nespresso,
Nescafé, KitKat, Smarties, Nesquik,Stouffer's, Vittel, and Maggi. Nestlé has around
450 factories, operates in 86 countries, and employs around 328,000 people. It is one
of the main shareholders of L'Oréal, the world's largest cosmetics company. Nestlé
was formed in 1905 by the merger of the Anglo-Swiss Milk Company, established in
1866 by brothers George Page and Charles Page, and Farine Lactée Henri Nestlé,
founded in 1866 by Henri Nestlé. The company grew significantly during the First
World War and again following the Second World War, expanding its offerings
beyond its early condensed milk and infant formula products. The company has made
a number of corporate acquisitions, including Crosse & Blackwell in 1950, Findus in
1963, Libby's in 1971, Rowntree Mackintosh in 1988 and Gerber in 2007.
Nestlé has a primary listing on the SIX Swiss Exchange and is a constituent of
the Swiss Market Index. It has a secondary listing on Euronext. In 2011, Nestlé was
listed No. 1 in the Fortune Global 500 as the world's most profitable corporation.
With a market capitalization of $ 200 billion, Nestlé ranked No. 13 in the FT Global
2011.

History:-
Nestlé's origins date back to 1866, when two separate Swiss enterprises were founded
that would later form the core of Nestlé. In the succeeding decades, the two
competing enterprises aggressively expanded their businesses throughout Europe and
the United States.
In August 1867 Charles (US consul in Switzerland) and George Page, two brothers
from Lee County, Illinois, USA, established the Anglo-Swiss Condensed Milk

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Company in Cham, Switzerland. Their first British operation was opened
at Chippenham, Wiltshire, in 1873.
In September 1866 in Vevey, Henri Nestlé developed a milk-based baby food, and
soon began marketing it. The following year saw Daniel Peter begin seven years of
work perfecting his invention, the milk chocolate manufacturing process. Nestlé's was
the crucial cooperation that Peter needed to solve the problem of removing all the
water from the milk added to his chocolate and thus preventing the product from
developing mildew. Henri Nestlé retired in 1875 but the company under new
ownership retained his name as Société Farine Lactée Henri Nestlé.

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Dabur

Dabur (Dabur India Ltd).derived from Daktar Burman is India's


largest Ayurvedic medicine manufacturer. The Dabur began with a small, but
visionary endeavour by Dr. S. K. Burman, a physician tucked away in Bengal. He has
set up Dabur in 1884 to produce and dispense Ayurvedic medicines. Reaching out to a
wide mass of people who had no access to proper treatment. Dr. S. K. Burman's
commitment and ceaseless efforts resulted in the company growing from a fledgling
medicine manufacturer in a small Calcutta house, to a household name that at once
evokes trust and reliability. His mission was to provide effective and affordable cure
for ordinary people in far-flung villages. With missionary zeal and fervour, Dr.
Burman undertook the task of preparing natural cures for the killer diseases of those
days, like cholera, malaria and plague.Soon the news of his medicines traveled, and
he came to be known as the trusted 'Daktar' or Doctor who came up with effective
cures. That is how his venture Dabur got its name - derived from the Devanagri
rendition of Daktar Burman.

Dabur's Ayurvedic Specialities Division has over 260 medicines for treating a range
of ailments and body conditions-from common cold to chronic paralysis.Dabur
International, a fully owned subsidiary of Dabur India, has sold its stake in UAE
based Weikfield International on 25 June 2012.

Dabur group
With a basket including personal care, health care and food products, Dabur India
Limited has set up subsidiary Group Companies across the world that can manage its
businesses more efficiently.
Given the vast range of products, sourcing, production and marketing have been
divested to the group companies that conduct their operations independently:

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Procter & Gamble

The Procter & Gamble Company (NYSE: PG), also known as P&G, is an
American multinational consumer goods company headquartered in downtown
Cincinnati, Ohio, USA. Its products include pet foods, cleaning agents and personal
care products. Prior to the sale of Pringles to Kellogg Company, its product line
included foods and beverages.

In 2011, P&G recorded $82.6 billion dollars in sales. Fortune magazine ranked P&G
at fifth place of the "World's Most Admired Companies" list, which was up from sixth
place in 2010. Procter & Gamble is the only Fortune 500 company to issue C Share
common stock.

History

William Procter, a candle maker, and James Gamble, a soap maker, emigrated from
England and Ireland respectively. They settled in Cincinnati initially and met when
they married sisters, Olivia and Elizabeth Norris. Alexander Norris, their father-in-
law, called a meeting in which he persuaded his new sons-in-law to become business
partners. On October 31, 1837, as a result of the suggestion, Procter & Gamble was
created.

In 1858–1859, sales reached $1 million. By this point, approximately 80 employees


worked for Procter & Gamble. During the American Civil War, the company won
contracts to supply the Union Army with soap and candles. In addition to the
increased profits experienced during the war, the military contracts introduced
soldiers from all over the country to Procter & Gamble's products.

In the 1880s, Procter & Gamble began to market a new product, an inexpensive soap
that floats in water. The company called the soap Ivory. William Arnett Procter,
William Procter's grandson, began a profit-sharing program for the
company's workforce in 1887. By giving the workers a stake in the company, he
correctly assumed that they would be less likely to go on strike.

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The company began to build factories in other locations in the United States because
the demand for products had outgrown the capacity of the Cincinnati facilities. The
company's leaders began to diversify its products as well and, in 1911, began
producing Crisco, a shortening made of vegetable oils rather than animal fats. As
radio became more popular in the 1920s and 1930s, the company sponsored a number
of radio programs. As a result, these shows often became commonly known as "soap
operas."

Procter & Gamble headquarters in Downtown Cincinnati, Ohio

The company moved into other countries, both in terms of manufacturing and product
sales, becoming an international corporation with its 1930 acquisition of theThomas
Hedley Co., based in Newcastle upon Tyne, England. Procter & Gamble maintained a
strong link to the North East of England after this acquisition. Numerous new
products and brand names were introduced over time, and Procter & Gamble began
branching out into new areas. The company introduced Tide laundry detergent in
1946 and Prell shampoo in 1947. In 1955, Procter & Gamble began selling the first
toothpaste to contain fluoride, known as Crest. Branching out once again in 1957, the
company purchased Charmin Paper Mills and began manufacturing toilet paper and
other paper products. Once again focusing on laundry, Procter & Gamble began
making Downy fabric softener in 1960 and Bounce fabric softener sheets in 1972.
One of the most revolutionary products to come out on the market was the
company's Pampers, first test-marketed in 1961. Prior to this point disposable
diapers were not popular, although Johnson & Johnson had developed a product
called Chux. Babies always wore cloth diapers, which were leaky and labor intensive

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to wash. Pampers provided a convenient alternative, albeit at the environmental cost
of more waste requiring land filling.

Procter & Gamble acquired a number of other companies that diversified its product
line and significantly increased profits. These acquisitions included Folgers Coffee,
Norwich Eaton Pharmaceuticals (the makers of Pepto-Bismol), Richardson-Vicks,
Noxell (Noxzema), Shulton's Old Spice, Max Factor, and the Iams Company, among
others. In 1994, the company made headlines for big losses resulting from leveraged
positions in interest rate derivatives, and subsequently sued Bankers Trust for fraud;
this placed their management in the unusual position of testifying in court that they
had entered into transactions that they were not capable of understanding. In 1996,
Procter & Gamble again made headlines when the Food and Drug
Administration approved a new product developed by the company, Olestra. Also
known by its brand name 'Olean', Olestra is a lower-calorie substitute for fat in
cooking potato chips and other snacks.

Procter & Gamble has dramatically expanded throughout its history, but its
headquarters still remains in Cincinnati.

In January 2005 P&G announced an acquisition of Gillette, forming the largest


consumer goods company and placing Unilever into second place. This added brands
such as Gillette razors, Duracell , Braun, and Oral-B to their stable. The acquisition
was approved by the European Union and the Federal Trade Commission, with
conditions to a spinoff of certain overlapping brands. P&G agreed to sell its Spin
Brush battery-operated electric toothbrush business to Church & Dwight. It also
divested Gillette's oral-care toothpaste line, Rembrandt. The deodorant brands Right
Guard, Soft & Dri , and Dry Idea were sold to Dial Corporation. The companies
officially merged on October 1, 2005. Liquid Paper, and Gillette's stationery
division, Paper Mate were sold to Newell Rubbermaid. In 2008, P&G branched into
the record business with its sponsorship of Tag Records, as an endorsement for TAG
Body Spray.

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ITC Limited

ITC Limited or ITC is an Indian public conglomerate company (25.4% owned by


British corporation, British American Tobacco)headquartered in Kolkata, West
Bengal, India. Its diversified business includes four segments: Fast Moving Consumer
Goods (FMCG), Hotels, Paperboards, Paper & Packaging and Agri Business. ITC's
annual turnover stood at $7 billion and market capitalization of over $34 billion. The
company has its registered office in Kolkata. It started off as the Imperial Tobacco
Company, and shares ancestry with Imperial Tobacco of the United Kingdom, but it is
now fully independent, and was rechristened to India Tobacco Company in 1970 and
then to I.T.C. Limited in 1974.

The company is currently headed by Yogesh Chander Deveshwar. It employs over


29,000 people at more than 60 locations across India and is listed on Forbes 2000.
ITC Limited completed 100 years on 24 August 2010.

ITC has a diversified presence in FMCG (Fast Moving Consumer Goods), Hotels,
Paperboards & Specialty Papers, Packaging, Agri-Business and Information
Technology. While ITC is an outstanding market leader in its traditional businesses of
Hotels, Paperboards, Packaging, Agri-Exports and Cigarettes, it is rapidly gaining
market share even in its nascent businesses of Packaged Foods & Confectionery,

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Branded Apparel, Personal Care and Stationery. Meera Shankar, will join the board of
ITC Ltd as the first women director in its history. She will be an additional non-
executive director of the cigarettes-FMCG-hotel major.

ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath &
body care products for men and women in July 2005. Continuing with its tradition of
bringing world class products to Indian consumers the Company launched 'Fiama Di
Wills', a premium range of Shampoos, Shower Gels and Soaps in September, October
and December 2007 respectively. The Company also launched the 'Superia' range of
Soaps and Shampoos in the mass-market segment at select markets in October 2007
and Vivel De Wills & Vivel range of soaps in February and Vivel range of shampoos
in June 2008

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INTRODUCTION TO THE
TOPIC

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INTRODUCTION TO TOPIC

In corporate business houses or companies financial statement means to a set


of reports & schedules which are prepared by an accountant at the end of period of
time for a business enterprise. This Statement includes Profit & Loss account, Balance
Sheet, Income Statement, Fund Flow Statement etc. i.e. financial statement gives
many important information of a company, business house at a glance. One can
comment on the company reputation by its financial statements. U/s 211 of companies
Act 1956, every company is bound to present its financial statements.
Financial in formations are the basis for financial planning & analysis. These
in formations are needed to predict, compare and evaluate the firm's earning ability.
Various economic decisions are taken on the basis of financial information. The
financial information of an enterprise is contained in the financial statements.
Thus the financial statements provide a summarized view of the operations of
a firm. So much can be learnt about a firm, from a careful examination of its financial
statements. Financial statements themselves are organized summaries of detailed
information. Interim reports presented annually, reflect a division of life of an
enterprise into more or less arbitrary accounting period more frequently a year.
The financial statements provide a summary of the accounts of a business
enterprise, the balance sheet reflecting the assets, liabilities & capital as on a certain
date & the operations during a certain period.
The accounting reports of business entities present three principal financial
statements. There are balance sheet, income statement & statement of changes in
financial position. Balance Sheet is a mirror of the financial position of a firm. It
reveals the assets firm owns and the liabilities, it is to pay to outsiders & amount of
internal liabilities in terms of capital supplied by owners to finance business at
particular point of time. Income statement shows the operational position of the
concern, whereas statements of changes in financial position describe the source &
uses of capital during that period.

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TYPES OF FINANCIAL STATEMENTS

According to Dr. S.M. Shukla Financial Statements may be divided into two
parts.35
a. General purpose financial statements- these statements are prepared to satisfy
the needs of proprietors, Creditors, investors .and employees etc.
b. Special purpose financial statements- these statements are prepared for the
satisfaction of taxation authorities, or other government officers.

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OBJECTIVES OF FINANCIAL STATEMENTS:

The requirement of financial statement is to help in decision making. Financial


analysis help in describing the strength & weakness of a business undertaking by
regrouping and analysis of figures contained in financial statements by making
comparison of various components &by examining their content. Financial statements
are used as basis to plan future financial requirements by help of budgeting procedure
and forecasting.
Financial statements are necessary for shareholders & potential shareholders
in addition to management & creditors. That’s why analysis of financial statement has
become a subject of paramount importance.
These Financial statements are used by every interested party for their own
purpose & to satisfy their particular curiosity.

The objectives mentioned by the “Accounting Principles Board of America" are as


follows:-
1. To provide financial information that assists in estimating the earning potential
of the enterprise.
2. To furnish reliable information about changes in net resources (resources
minus obligations) of an enterprise that result from the profit directed
activities.
3. To provide reliable financial information about economic resources &
obligations of a business enterprises.
4. To provide other needed information about changes in economic resources and
obligations.
5. To disclose to the extent possible other information related to the financial
statement that is relevant to statement users.

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FINANCIAL ANALYSIS

The preparation of financial statements is not the end aim. The analysis of
financial statement can become a tool for future planning and forecasting. The focus
of financial analysis is an key figures in the financial statements and the significant
relationships that exists between them. The analysis of financial statements is a
process of determining financial strengths & weakness of the company by
establishing strategic relationship between the balance sheet and profit and loss
statements and other operative data.
The first task of financial analysis is to select the information relevant to the
decision under consideration from the total information contained in the financial
statements. The second step involved in financial analysis is to arrange the
interpretation and drawing of inferences and conclusions.
In brief financial analysis is the process of selection relation and evaluation.

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TYPES OF FINANCIAL ANALYSIS

Distinction between different types of financial analysis can be made either on


the basis of material used for the analysis or according to modus operands of the
analysis.

TYPES OF
FINANCIAL
ANALYSIS

ACCORDING
ACCORDING TO
TO ACCORDING TO
MODUS
MATERIAL OBJECTIVES
OPERANDI
USED

INTERNAL LONG SHORT VERTICAL


EXTERNAL ANALYSIS HORIZONTAL ANALYSIS
ANALYSIS TERM ANALYSIS TERM ANALYSIS ANALYSIS

Profitability
Profitability
Analysis

Working
Stability Capital
Analysis

Liquidity
Solvency
Analysis

Return

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3.6 TOOLS OF FINANCIAL STATEMENT ANALYSIS:
A number of tools and devices are used to study the relationship between
different statements. The basic purpose of the tools is to simplify or reduce the data
under review to more understandable terms. The following tools can be used for the
analysis of financial statements.

I. RATIO ANALYSIS:
Ratio analysis is the processing of determining and presenting in
arithmetically terms the relationship between figures and groups of figures drawn
from these statements. It includes establishing and interpreting various ratio for
helping in making certain decision like financial position, liquidity, solvency, stability
& profitability of the concern. The financial statements consists of two types of
comparisons, firstly, the analyst can compare a present ratio with that of past &
expected future ratios for the same company. Secondly, it may compare the ratio of
one firm with those similar firms or with the industry ratio over the period of time.

II. FUND FLOW STATEMENTS:


Fund flow statements is designed to highlight changes in the financial
conditions of a business concern between two points of time which generally confirm
to beginning and ending financial statements dates for whatever period of
examination is relevant

III. CASH FLOW STATEMENTS:


It summaries the cause of change in cash position between dates of two
balance sheet. A cash flow statement focuses attention on cash changes only. It is very
useful for short term planning.

IV. STATEMENTS OF CHANGES IN WORKING CAPITAL:


A statement of changes in working capital is prepared to show the change in
the working capital between the two balance sheet dates. The statements are prepared
with the help of current assets & current liabilities derived from the two balance sheet

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dates. The amount of working capital is calculated by deducting the current liabilities
from current assets.

V. COMPARATIVE FINANCIAL STATEMENTS:


The comparatively financial statements are statements of the financial position
at different periods of time. Such comparative statements are necessary for the study
of trends and direction of movement financial position and operating results.
Comparative statements enable horizontal analysis of figures

VI. TREND ANALYSIS:


Trend analysis is a statistical device applied in the analysis of financial
statements to reveal the trends of the items with the passage of time. Trend ratios
show the nature and rate of movements in various financial factories. They provide a
Horizontal Analysis of comparative statements. Trend analysis is very useful in
predicting the behaviour of financial factors in future.

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THEORETICAL FRAMEWORK

According to aforesaid discussions the researcher could go for the analysis of


financial statements of a business enterprise, further the public invests a huge amount
of funds in corporate sector, this necessitates for the periodic analysis of the company
so that the investing public can judge the worth and future of their investments in a
better way. Moreover there is a trend toward having systems approach to catch
problems.

CONSTRUCT
To study the impact of Financial Performances (PAT) on profitability of top 5
FMCG companies ( HUL, P&G ,ITC, Dabur ,Nestle) for last five years.

Dependent variable :-
 Long term profitability
Independent variable:-
 Financial performance

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REVIEW OF LITERATURE

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LITERATURE REVIEW
 Schanner (1991). In this we study unless you have meaningful forecasting,
and bookkeeping in place, you're likely going to have cash management
problems. The result is the need to stretch out and defer payments that have
come due. This can be the very edge of the slippery slope. I mean, if you don't
find out what's causing the cash flow problem in the first place, stretching out
payments may only help you dig a deeper hole. The primary targets are
government remittances, trade payables, and credit card payments.
 Bradley (1991). In this we study that the proper financing strategy creates -1)
the financing required to support the present and future cash flows of the
business, 2) the debt repayment schedule that the cash flow can service, and 3)
the contingency funding necessary to address unplanned or unique business
needs. Because financing is largely an unplanned and after the fact event. It
seems once everything else is figured out, then a business will try to locate
financing. There are many reasons for this including: entrepreneurs are more
marketing oriented, people believe financing is easy to secure when they need
it, the short term impact of putting off financial issues are not as immediate as
other things, and so on. Regardless of the reason, the lack of a workable
financing strategy is indeed a mistake. However, a meaningful financing
strategy is not likely to exist if one or more of the other 6 mistakes are present.
This reinforces the point that all mistakes listed are intertwined and when
more than one is made, the effect of the negative result can become
compounded.
 Aramario&Lambin (1991).This study reveals that there can be severe credit
consequences to payments for both short periods of time and indefinite periods
of time. First, late payments of credit cards are probably the most common
ways in which both businesses and individuals destroy their credit.
Second, NSF checks are also recorded through business credit reports and are
another form of black mark.
 Walker, Boyd, Larreche (1992).In this we study, the most important thing
you can do from a financing point of view is get profitable as fast as possible.
Most lenders must see at least one year of profitable financial statements
before they will consider lending funds based on the strength of the business.

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Before short term profitability is demonstrated, business financing is based
primary on personal credit and net worth. For existing businesses, historical
results need to show profitability to acquire additional capital. The
measurement of this ability to repay is based on the net income recorded for
the business by a third party accredited accountant. In many cases, businesses
work with their accountants to reduce business tax as much as possible but
also destroy or restrict their ability to borrow in the process when the business
net income is insufficient to service any additional debt.
 Inadequate Working Capital (2003).In this we study the amount of record
keeping will help you if you don't have enough working capital to properly
operate the business. That's why it’s important to accurately create a cash flow
forecast before you even start up, acquire, or expand a business. Too often the
working capital component is completely ignored with the primary focus
going towards capital asset investments. When this happens, the cash flow
crunch is usually felt quickly as there are insufficient funds to properly
manage through the normal sales cycle.

 Vivek U. Pimplapure and Pushparaj P. Kulkarni(2003). In this we


studyregardless of the size of your business, inaccurate record keeping creates
all sorts of issues relating to cash flow, planning, and business decision
making. While everything has a cost, bookkeeping services are dirt cheap
compared to most other costs a business will incur. And once a bookkeeping
process gets established, the cost usually goes down or becomes more cost
effective as there is no wasted effort in recording all the business activity. By
itself, this one mistake tends to lead to all the others in one way or another and
should be avoided at all costs.
 ArzuTektas (2005).states that an efficient asset-liability management requires
maximizing banks' profit as well as controlling and lowering various risks.
This multi-objective decision problem aims to reach goals such as
maximization of liquidity, revenue, capital adequacy, and market share subject
to financial, legal requirements and institutional policies. This paper models
asset and liability management (ALM) in order to show how different
managerial strategies affect the financial wellbeing of banks during crisis.

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 Quin,Jun. Strahan, Philipe.(December 2007).In this we study “How laws &
Institutions shape financial contract”, The Journal of Finance Determinants of
Bank loan Contracts. According to this article: under strong creditor
protection, loans have longer maturity & lower interest rates.
 Brent Finlay(2008) states that avoiding the top 7 business financing mistakes
is a key component in business survival. The key is to understand the causes
and significance of each so that the company is in a position to make better
decisions.
 Kohli, V. K. (March 2008).This study reveals the “Performance Appraisal of
Selected Housing finance Agencies in India”, Help the researcher to give the
recommendation to the housing finance agencies.
 Brav Omer, 3 (February 2009). In this we study the “Access to Capital
Structure and the Funding Of the Firm” The Journal Of Finance Researcher
has studied Access to Capital, Capital Structure and Funding of the Firm.

31
Palak
RESEARCH METHODOLOGY
AND OBJECTIVES

32
Palak
OBJECTIVES OF THE STUDY

To The main objective is to analyze financial statements of top five FMCG


companies. Other objectives are:
 To analyze the position of the company in the industry.
 To find the financial performance of leading FMCG companies.
 To analyze what are reasons for strong position of one company to other
 To find out the reasons for differences in the profits comparatively competing
companies.
 To analyze the market share acquired by each company in the market
 To make appropriate suggestion to overcome the weakness and the
inefficiencies that comes into light in the course of the study.

33
Palak
RESEARCH METHODOLOGY

Research is a systematic and continues method of defining a problem, collecting the


facts and analyzing them, reaching conclusion forming generalizations.
Research is defined as “a scientific & systematic search for pertinent information on a
specific topic”. Research is an art of scientific investigation. Research is a systemized
effort to gain new knowledge. It is a careful inquiry especially through search for new
facts in any branch of knowledge. The search for knowledge through objective and
systematic method of finding solution to a problem is a research.

1
OBSERVATION
Broad area of
research interest
identified

7
4
3 DATA COLLECTION,
THEORETICAL
PROBLEM 5 ANALYSIS AND
FRAMEWORK
DEFINITION GENERATION 6 INTERPRETATION
Variables clearly
Research OF SCIENTIFC
identified and
Problem HYPOTHESES RESEARCH
labelled
Delineated DESIGN

8
DEDUCTION
Hypotheses
2
substantiated?
PRELIMINARY
Research
DATA GATHERING
question
Interviewing
answered?
Literature Survey
NO Yes

10 11
9 Report Managerial
Report Presenta decision
writing tion making

34
Palak
STEP IN RESEARCH METHODOLOGY

1. Research design
2. Sample design
3. Data collection
4. Analysis and Interpretation of data
5. Statistical tool
6. Limitation of study

RESEARCH DESIGN
A research is the arrangement of the conditions for the collections and analysis of the
data in a manner that aims to combine relevance to the research purpose with
economy in procedure. In fact, the research is design is the conceptual structure
within which research is conducted; it constitutes the blue print of the collection,
measurement and analysis of the data. As search the design includes an outline of
what the researcher will do from writing the hypothesis and its operational implication
to the final analysis of data.
The design is such studies must be rigid and not flexible and most focus attention on
the following:

What is the study about?


Why is the study being made?
Where will the study be carried out?
What type of data is required?
Where can be required data be found?
What period of time will the study include?
What will be sample design?
What techniques of data collection will be used?
How will the data be analyzed?
In what style will the report be prepared?

35
Palak
TYPE OF RESEARCH DESIGEN

RESEARCH DESIGN IN STUDY:


In the study researcher will apply descriptive research design. As
descriptive research design is the description of state of affairs, as it exists at
present. In this type of research the researcher has no control over the variables; he
can only report what has happened or what is happening. The present study is
descriptive in nature, as it seeks to discover ideas and insight to bring out new
relationship. Research design is flexible enough to provide opportunity for
considering different aspects of problem under study. It helps in bringing into focus
some inherent weakness in enterprise regarding which in depth study can be
conducted by management.

TIME HORIZON:
1. One shot (cross sectional)
2. Longitudinal

36
Palak
The time period selected is firm 2014 to 2018. For 3 companies, the pooled-cross
section and time series data has been used to get maximum possible data entries.
STUDY SETTING:
1. Contrived
2 .Non-contrived

This study is non-contrived.


MEASUREMENT AND SCALING
1. Items (measures)
2. Scaling
3. Categorization
4. Coding

37
Palak
FLOW CHART FOR SELECTION OF STASTICAL TOOL

38
Palak
39
HYPOTHESIS DEVELOPMENT AND TESTING

HYPOTHESIS DEVELOPMENT
Null hypothesis (H0): In test of hypothesis we always begin with an assumption or
hypothesis this is called null hypothesis. The null hypothesis asserts that there is no
significant difference between the sample static and the population parameter and
whatever the observed difference is there, is merely due to fluctuations in sampling
from same population.

Hypothesis

Alternative
Null hypothesis
hypothesis

Alternative hypothesis (H1): Any hypothesis different then the null hypothesis is
called an alternative hypothesis. The two hypothesis H0 & H1 are such that if one is
accepted, the other is rejected.
HYPOTHESIS OF THE STUDY
T-Test
T test is used to determine whether there is a significant difference between two sets.
T-Test is an important test amongst several tests of significance developed by the
statisticians. T test is statistical measure used in the contest of sampling analysis for
testing the significance of population variance.

40
HYPOTHESIS TESTING AND DEVELOPMENT

 H01= There is no significant impact of Debt-Assets on the ROE


 H11= There is a significant impact of Debt-Assets on the ROE

 H02= There is no significant impact of Cashflow-debt on the ROE


 H12= There is a significant impact of Cashflow-debt on the ROE

 H03= There is no significant impact of Current ratio on the ROE


 H13= There is a significant impact of Current ratio on the ROE

41
HYPOTHESIS TESTING AND DEVELOPMENT

HUL COMPANY

H01= There is no significant impact of Debt-Assets on the ROE


H11= There is a significant impact of Debt-Assets on the ROE

One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

DEBT@ASSET 5 .4520 .73476 .32859

One-Sample Test

Test Value = 3

95% Confidence Interval of the


Difference

t df Sig. (2-tailed) Mean Difference Lower Upper

DEBT@ASSET -7.754 4 .001 -2.54800 -3.4603 -1.6357

Interpretation: Here significant value is 0.01 which is less than significant level i.e.
0.05,so null is rejected and alternative is accepted. So there is significant impact of
debt-asset on ROE

42
ITC COMPANY

H01= There is no significant impact of Debt-Assets on the ROE


H11= There is a significant impact of Debt-Assets on the ROE

One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

DEBT@ASSET 5 .9640 .55162 .24669

One-Sample Test

Test Value = 3

95% Confidence Interval of the


Difference

T df Sig. (2-tailed) Mean Difference Lower Upper

DEBT@ASSET -8.253 4 .001 -2.03600 -2.7209 -1.3511

INTERPRETATION:- : Here significant value is 0.01 which is less than significant


level i.e. 0.05,so null is rejected and alternative is accepted. So there is significant
impact of debt-asset on ROE

43
NESTLE

H01= There is no significant impact of Debt-Assets on the ROE


H11= There is a significant impact of Debt-Assets on the ROE

One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

DEBT@ASSET 5 1.0300 1.84911 .82695

One-Sample Test

Test Value = 3

95% Confidence Interval of the


Difference

t df Sig. (2-tailed) Mean Difference Lower Upper

DEBT@ASSET -2.382 4 .006 -1.97000 -4.2660 .3260

INTERPRETATION:- : Here significant value is 0.006 which is less than significant


level i.e. 0.05,so null is rejected and alternative is accepted. So there is significant
impact debt-asset on ROE

44
DABUR

H01= There is no significant impact of Debt-Assets on the ROE


H11= There is a significant impact of Debt-Assets on the ROE

One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

DEBT@ASSET 5 1.3420 .62934 .28145

One-Sample Test

Test Value = 3

95% Confidence Interval of the


Difference

t df Sig. (2-tailed) Mean Difference Lower Upper

DEBT@ASSET -5.891 4 .004 -1.65800 -2.4394 -.8766

INTERPRETATION:- : Here significant value is 0.004 which is less than significant


level i.e. 0.05,so null is rejected and alternative is accepted. So there is significant
impact debt-asset on ROE

45
Procter &Gamble

H01= There is no significant impact of Debt-Assets on the ROE


H11= There is a significant impact of Debt-Assets on the ROE

One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

DEBT@ASSET 5 .0460 .06309 .02821

One-Sample Test

Test Value = 3

95% Confidence Interval of the


Difference

T Df Sig. (2-tailed) Mean Difference Lower Upper

DEBT@ASSET -104.702 4 .000 -2.95400 -3.0323 -2.8757

Interpretation: : Here significant value is 0.000 which is less than significant level
i.e. 0.05,so null is rejected and alternative is accepted. So there is significant impact
debt-asset on ROE

46
SAMPLING DESIGN

It is a definitely plan determined before any data is actually for obtaining a sample
from a given population. The researcher must decide the way of selecting items for
sample or non-probability. Samples are those based a simple random sampling,
systematic sampling, stratified, duster are a sampling where nor probability. One
those based on convenience judgment & quota sampling.
 SAMPLING UNIT:
It must be a geographical one such as state, district, village etc. or a construction unit
such as house flat etc. or individual. The researcher will have to decide one or more of
such units that he has to select for his study.
 SAMPLING SIZE:
It refers to from the universe or constitute sample. This is a major problem the
researcher the size of sample should neither be excessive large, nor too small. It
should be optimum.
 SAMPLING METHOD:
It is used for this project is judgment sampling which is one of type of non-probability
sampling.

As my research is on financial analysis there no as such requirement of any other


sampling unit, size & method.

Sample unit FIVE COMPANIES


Sample size FIVE YEARS

47
DATA COLLECTION

After the research problem has been identified and selected the next step is to gather
the requisite data. While deciding about the method of data collection to be used for
the researcher should keep in mind two types of data i.e. primary and secondary.

METHODS USED IN STUDY; -


I collected the data through the secondary sources such as
 Books
 Magazines
 Newspaper
 Internet

48
DATA ANALYSIS
AND INTERPRETATION

49
RATIO ANALYSIS

The term “Ratio” refers to the numerical and quantitative relationship between two items or
variables. This relationship can be exposed as

 Percentages
 Fractions
 Proportion of numbers

Ratio analysis is defined as the systematic use of the ratio to interpret the financial
statements. So that the strengths and weaknesses of a firm, as well as its historical
performance and current financial condition can be determined. Ratio reflects a
quantitative relationship helps to form a quantitative judgment.

50
ANALYTICAL TOOLS

FOR ANALYSIS OF FOLLOWING:


1. " Analysis of working capital". 'Under this study an attempt has been made to
analyse the solvency position of the firm.It describes
Concept of working capital
Components of working capital
Importance of working capital
Working capital analysis
Tools of working capital analysis and
Analysis of working capital of ITC Ltd.
2. " Financial structure Analysis" of the concern. The analysis is made with the
help of folio wing ratio:
Debt equity ratio
Proprietary ratio
Fixed Assets to proprietor's fund and
Current Assets to proprietor's funds etc.
3. " Profitability Analysis" incorporates gross profit operating profit, and net profit
position of the concern during the study period

51
RETURN ON EQUITY:-
Return on equity measures the profitability of the funds belonging to the equity
shareholders. Since the profit available to equity shareholders will be the profit left after
payment of interest, taxes and dividends on preference share capital, the ratio is computed
as follows:-
ROE= NET PROFIT (AFTER INT, TAX AND PREFERENCE DIVIDEND)*100
EQUITY SHAREHOLDERS FUNDS

YEAR HUL ITC NESTLE DABUR P&G


2014 1.22 0.25 0.98 0.61 0.37
2015 1.21 0.23 1.12 0.51 0.4
2016 0.85 0.28 1.12 0.58 0.33
2017 0.87 0.31 0.95 0.46 0.25
2018 0.7 0.32 0.75 0.37 0.26

1.4

1.2

1 HUL
ITC
0.8
NESTLE
0.6 DABUR

0.4 P&G

0.2

INTERPRETATION:-The return on equity of HUL , NESTLE , DABUR and P&G are


going downward in the previous years whereas the return on equity of ITC is showing
upward trend.

Pooja Kundra 52
DEBT/ ASSETS

The debt to total assets ratio is an indicator of financial leverage. It tells you
the percentage of total assets that were financed by creditors, liabilities, debt. The debt to
total assets ratio is calculated by dividing a corporation’s total liabilities by its total assets.

DEBT-ASSET RATIO = DEBT

ASEETS

YEAR HUL ITC NESTLE DABUR P&G


2014 0.57 1.77 0.68 0.3 0.11
2015 1.69 1.27 0.17 1.58 0.12
2016 0 0.76 0 1.23 0
2017 0 0.61 0 1.87 0
2018 0 0.41 3.7 1.73 0

3.5

3
HUL
2.5
ITC
2 NESTLE
DABUR
1.5
P&G
1

0.5

INTERPRETATION:-The debt/asset of the DABUR and NESTLE is increasing as


compared to that of HUL , ITC and P&G which are decreasing.

Pooja Kundra 53
CASH FLOW/TOTAL DEBT:-
This coverage ratio compares a company's operating cash flow to its total debt, which, for
purposes of this ratio, is defined as the sum of short-term borrowings, the current portion
of long-term debt and long-term debt. This ratio provides an indication of a company's
ability to cover total debt with its yearly cash flow from operations. The higher the
percentage ratio, the better the company's ability to carry its total debt.

YEAR HUL ITC NESTLE DABUR P&G


2014 4.4 0.02 0.46 4.08 0.45
2015 2.3 0.05 2.7 1.03 0.33
2016 0 0.1 0 1.54 0
2017 0 0.21 0 0.75 0
2018 0 0.34 3.7 1 0

5
4.5
4
3.5 HUL
3 ITC
2.5 NESTLE
2 DABUR

1.5 P&G

1
0.5
0

INTERPRETATION:-The cash flow-debt of the NESTLE is very high which shows it’s
ability to carry it’s debt. The DABUR company is also increasing from last two years as
compared to the others companies like P&G , HUL and ITC.

Pooja Kundra 54
CURRENT RATIO:-
This ratio explains the relationship between current assets and current liabilities of a
business. This ratio is used to assess the firm’s ability to meet it’s short-term liabilities on
time.

CURRENT RATIO= CURRENT ASSETS


CURRENT LIABILITES

YEAR HUL ITC NESTLE DABUR P&G


2014 0.68 1.36 0.66 0.91 1.94
2015 0.92 1.42 0.66 1.19 2.3
2016 0.84 0.92 0.6 0.93 2.13
2017 0.86 1.08 0.62 0.99 2.41
2018 0.83 1.08 0.42 1.15 2.17

2.5

2 HUL
ITC
1.5 NESTLE
DABUR

1 P&G

0.5

INTERPRETATION:-The current ratio of the P&G is higher than the other companies.
But the other companies are also increasing . But only the ratio of NESTLE company is
decreasing.

Pooja Kundra 55
SOLVENCY RATIO
Solvency ratios are also known as leverage or capital structure ratios. These ratios are related with debt
paying capacity of the company. The long-term solvency of the company is judged with the help of these
ratios.

1. Debt-Equity Ratio: The debt-equity ratio is the relationship between the debt(loan funds) and
equity(shareholder’s funds). This ratio is to find out the long-term solvency position of the
company.
Debt (loan funds)
Debt-Equity Ratio = ----------------------------------
Equity (shareholder’s funds)
HUL ITC INESTLE DABUR P&G

2014 0.01 0.33 0.26 0.13 0.18

2015 0.01 0.4 0.03 0.01 0.03

2016 0.01 0.31 - 0.22 0.28

2017 0.01 0.22 - 0.15 0.18

2018 0.01 0.22 - 0.16 0.13

0.45
0.4
0.35 HUL
0.3
ITC
0.25
INESTLE
0.2
DABUR
0.15
0.1 P&G
0.05
0

Interpretation:- The debt-equity ratio of the ITC company is increasing which is the sign
of danger as compared to the other companies whose debt-equity is very low.

Pooja Kundra 56
PROFITABILITY RATIO
Profitability provides the necessary funds for expansion and diversification besides
maintaining the solvency of the business. The profitability ratios can be calculated on the
basis of sales or capital employed.
1. Operating Income Ratio: it indicates the operating margin on sales. This is the margin
available to the firm after meeting all the operating expenses including depreciation.
Operating margin is independent of leverage and taxes .higher operating margin
indicates availability of cash flows for repayment of debt obligations and the chances
of default are less.

HUL ITC INESTLE DABUR P&G

2014 27.11 21.24 20.66 22.12 24.12

2015 26.87 22.12 23.86 23.84 25.45

2016 28.93 24 26.75 22 27.23

2017 29.96 21.9 21.18 20.9 23.15

2018 29.3 19.63 24.42 22.41 20.55

35

30

25
HUL

20 ITC
INESTLE
15 DABUR
P&G
10

Interpretation:-The operating ratio of the HUL company is increasing at a constant rate


and other companies operating income is also increasing with that speed which shows
that companies are left with more margin or profits after meeting the expenses.

Pooja Kundra 57
STATISTICAL TOOL

An educated citizen needs an understanding of basic statistical tool to function in a world


that is becoming increasingly dependent on quantitative information. Statistics means
numerical description to most people. In fact the term statistics is generally used to mean
numerical facts and figures such as agriculture production during a year, rate of inflation
and so on. However as a subject of study, statistics refers to the body of principles and
procedures developed for the collection, classification, summarization and interpretation
of numerical data and for the use of such data.

Broadly speaking, the term statistics has been generally used in two senses:-

Plural Sense

Singular Sense

Plural sense refers to the numerical data. Singular Sense refers to a Science in which
we deals with the techniques of collecting, classifying, presenting, analyzing and
interpreting the data, the concept in its singular sense, refers to Statistical Method.

TOOLS USED:-
CORRELATION
REGRESSION

Pooja Kundra 58
CORRELATION
1. “Correlation analysis deals with the association between two or ore variables”-
Simpson and Kafka.
2. “If two or ore quantities vary in sympathy, so that movement in one tend to be
accompanied by corresponding movements in the other, then they are said to be
correlated”-Conner.
3. Correlation analysis attempts to determine the degree of relationship between
variables.

TYPES OF CORRELATION:

Correlation is classified in several different ways. Three of the most important ways are:-
 Positive and Negative Correlation: When two variable X and Y move in
same direction is Positive Correlation and when both variables move in
opposite direction that is Negative Correlation.
 Simple, Partial and Multiple Correlations: When we study the relationship
between two variables only that is Simple Correlation. When three or more
variables are taken but relationship between any two of the variable is studied,
assuming other variables as constant that is Partial Correlation and when we
study the relationship among three or more variables that is Multiple
Correlation.
 Linear and Curvi-Linear Correlation: when the ratio of change of two
variables X and Y remains constant throughout, then they are said to be Linear
Correlated and when the ratio of change between the two variables is not
constant but changing, then correlation is said to be Curvi-Linear.

Pooja Kundra 59
DEGREE OF CORRELATION:-

Sr. No. Degree of Positive Negative


correlation
1 Perfect correlation +1 -1
2 High Degree of Between +.75 Between -.75 to-1
correlation to+1
3 Moderate Degree of Between +.25 Between -.25 to-.75
Correlation to+.75
4 Low Degree of Between 0 to+.25 Between 0 to-.25
Correlation
5 Absence of 0 0
Correlation

Pooja Kundra 60
HUL

Correlations

cashflow@de
Roe debt@asset bt Cr

Roe Pearson
1 .800 .895* -.243
Correlation

Sig. (2-tailed) .104 .040 .694

N 5 5 5 5

debt@asset Pearson
.800 1 .579 .290
Correlation

Sig. (2-tailed) .104 .307 .636

N 5 5 5 5

cashflow@deb Pearson
.895* .579 1 -.606
t Correlation

Sig. (2-tailed) .040 .307 .278

N 5 5 5 5

Cr Pearson
-.243 .290 -.606 1
Correlation

Sig. (2-tailed) .694 .636 .278

N 5 5 5 5

*. Correlation is significant at the 0.05 level (2-tailed).


INTERPRETATION:-
Here the correlation value is .80 ,so there is high degree of +ve correlation between
ROE and Debt-asset as the value lies between .75 to 1

Here the correlation value is .89, so there is high degree of +ve correlation between
ROE and cashflow-debt as the value lies between .75 to 1

Here the correlation value is -.24, so there is Low degree of -ve correlation between ROE and
Current ratio as the value lies be tween 0 to -.25
Pooja Kundra 61
ITC

Correlations

CASHFLOW@D CURRENTRATI
ROE DEBT@ASSET EBT O

ROE Pearson Correlation 1 -.854 .906* -.758

Sig. (2-tailed) .065 .034 .137

N 5 5 5 5

DEBT@ASSET Pearson Correlation -.854 1 -.869 .780

Sig. (2-tailed) .065 .056 .120

N 5 5 5 5

CASHFLOW@DEBT Pearson Correlation .906* -.869 1 -.540

Sig. (2-tailed) .034 .056 .348

N 5 5 5 5

CURRENTRATIO Pearson Correlation -.758 .780 -.540 1

Sig. (2-tailed) .137 .120 .348

N 5 5 5 5

*. Correlation is significant at the 0.05 level (2-tailed).

INTERPRETATION:-

Here the correlation value is -.85, so there is high degree of -ve correlation between ROE
and Debt-asset as the value lies between -.75 to -1
Here the correlation value is .90, so there is high degree of +ve correlation between ROE
and cashflow-Debt as the value lies between .75 to 1
Here the correlation value is .-75 so there is .high degree of -ve correlation between ROE
and Current ratio as the value lies between -.75 to -1

Pooja Kundra 62
NESTLE

Correlations

CASHFLOW@D CURRENTRATI
ROE DEBT@ASSET EBT O

ROE Pearson Correlation 1 -.722 -.674 -.684

Sig. (2-tailed) .168 .212 .203

N 5 5 5 5

DEBT@ASSET Pearson Correlation -.722 1 .758 .464

Sig. (2-tailed) .168 .138 .431

N 5 5 5 5

CASHFLOW@DEBT Pearson Correlation -.674 .758 1 .900*

Sig. (2-tailed) .212 .138 .037

N 5 5 5 5

CURRENTRATIO Pearson Correlation -.684 .464 .900* 1

Sig. (2-tailed) .203 .431 .037

N 5 5 5 5

*. Correlation is significant at the 0.05 level (2-tailed).

INTERPRETATION:-
Here the correlation value is -.72, so there is a Moderate degree of –ve correlation
between ROE and Debt-asset as the value lies between -.25 to -.75

Here the correlation value is -.67, so there is Moderate degree of –ve correlation between
ROE and cashflow-debt as the value lies between -.25 to -.75

Here the correlation value is -.68, so there is Moderate degree of –ve correlation between
ROE and current ratio as the value lies between -.25 to -.75

Pooja Kundra 63
DABUR

Correlations

CASHFLOW@D CURRENTRATI
ROE DEBT@ASSET EBT O

ROE Pearson Correlation 1 -.797 .705 -.684

Sig. (2-tailed) .106 .183 .203

N 5 5 5 5

DEBT@ASSET Pearson Correlation -.797 1 -.983** .618

Sig. (2-tailed) .106 .003 .266

N 5 5 5 5

CASHFLOW@DEBT Pearson Correlation .705 -.983** 1 -.600

Sig. (2-tailed) .183 .003 .285

N 5 5 5 5

CURRENTRATIO Pearson Correlation -.684 .618 -.600 1

Sig. (2-tailed) .203 .266 .285

N 5 5 5 5

**. Correlation is significant at the 0.01 level (2-tailed).

INTERPRETATION:-

Here the correlation value is -.79, so there is High degree of –ve correlation between ROE
and Debt-asset as the value lies between -.25 to -.75

Here the correlation value is .70, so there is Moderate degree of + ve correlation between
ROE and cashflow-debt as the value lies between -.25 to -.75

Here the correlation value is -.68, so there is Moderate degree of –ve correlation
between ROE and current ratio as the value lies between -.25 to -.75

Pooja Kundra 64
PROCTOR AND GAMBLE

Correlations

CASHFLOW@D CURRENTRATI
ROE DEBT@ASSET EBT O

ROE Pearson Correlation 1 .878 .822 -.393

Sig. (2-tailed) .050 .088 .513

N 5 5 5 5

DEBT@ASSET Pearson Correlation .878 1 .968** -.318

Sig. (2-tailed) .050 .007 .602

N 5 5 5 5

CASHFLOW@DEBT Pearson Correlation .822 .968** 1 -.491

Sig. (2-tailed) .088 .007 .401

N 5 5 5 5

CURRENTRATIO Pearson Correlation -.393 -.318 -.491 1

Sig. (2-tailed) .513 .602 .401

N 5 5 5 5

**. Correlation is significant at the 0.01 level (2-tailed).

INTERPRETATION:-

Here the correlation value is .87, so there is High degree of +ve correlation between ROE
and Debt-asset as the value lies between .75 to 1

Here the correlation value is .82, so there is High degree of +ve correlation between ROE
and cashflow-Debt as the value lies between .75 to 1

Here the correlation value is -.39, so there is Moderate degree of - ve correlation between
ROE and current ratio as the value lies between -.25 to -.75

Pooja Kundra 65
REGRESSION
“It is the measure of average relationship between two or more variables”.

HUL
Model Summaryb

Change Statistics

Mo R Adjusted Std. Error of R Square Sig. F Durbin-


del R Square R Square the Estimate Change F Change df1 df2 Change Watson

1 .987a .974 .897 .07483 .974 12.607 3 1 .203 1.857

a. Predictors: (Constant), cr, debt@asset,


cashflow@debt

b. Dependent Variable:
roe

INTERPRETATION:- There is 97.4% impact of independent variables on dependent


variable.

ITC

Model Summaryb

Change Statistics

Adjusted R Std. Error of R Square Sig. F Durbin-


Model R R Square Square the Estimate Change F Change df1 df2 Change Watson

1 .974a .948 .791 .01753 .948 6.047 3 1 .288 2.903

a. Predictors: (Constant), CURRENTRATIO, CASHFLOW@DEBT, DEBT@ASSET

b. Dependent Variable: ROE

INTERPRETATION:- There is 94.8% impact of independent variables on dependent


variable..

Pooja Kundra 66
NESTLE

Model Summaryb

Change Statistics

Adjusted Std. Error of the R Square Durbin-


Model R R Square R Square Estimate Change F Change df1 df2 Sig. F Change Watson

1 .998a .996 .984 .01226 .996 81.487 3 1 .081 2.373

a. Predictors: (Constant), CURRENTRATIO, DEBT@ASSET, CASHFLOW@DEBT

b. Dependent Variable:
ROE

INTERPRETATION:- There is 99.6% impact of independent variables on dependent


variable.

DABUR

Model Summaryb

Change Statistics
Std. Error
Adjusted of the R Square Sig. F
Model R R Square R Square Estimate Change F Change df1 df2 Change Durbin-Watson

1 .929a .863 .452 .07114 .863 2.099 3 1 .460 2.396

a. Predictors: (Constant), CURRENTRATIO, CASHFLOW@DEBT,


DEBT@ASSET

b. Dependent
Variable: ROE

INTERPRETATION:- There is 86.3% impact of independent variables on dependent


variable.

Pooja Kundra 67
PROCTOR AND GAMBLE

Model Summaryb

Change Statistics

Adjusted Std. Error of R Square Sig. F


Model R R Square R Square the Estimate Change F Change df1 df2 Change Durbin-Watson

1 .942a .888 .553 .04421 .888 2.648 3 1 .418 1.453

a. Predictors: (Constant), CURRENTRATIO, DEBT@ASSET,


CASHFLOW@DEBT

b.
Dependent
variable
:ROE

INTERPRETATION:- There is 88.8% impact of independent variables on dependent


variable.

Pooja Kundra 68
LIMITATIONS OF THE STUDY

Time Constraints: -Time was a bit short to do the depth of the study. But still all
efforts to the best possible extent have been made to collect the data.
Data collection Constraints: - Since data used is secondary in nature, this poses
the constraints on the validity and reliability of the data.
Secrecy of Internal Data: - In today’s day the companies are very sensitive
regarding their internal data; this proved a hindrance to my study.
Restriction in Analysis: As some figures have not been disclosed by the company
on account of confidential report. Moreover, in some cases separate accounts of
division are not separately maintained thereby, leading to restriction in analysis.
Complex calculations
Calculations were typical and in crores that analysis was little difficult

Pooja Kundra 69
FINDINGS,
SUGGESTIONS AND
CONCLUSION

Pooja Kundra 70
RESULTS AND FINDINGS

There is mostly Moderate correlation in NESTLE Company.


Current ratio of P&G is satisfactory that is 2.41 and 2.17 but ITC and HUL fail to
achieve that satisfactory level.
Net profit of ITC is increasing from 2009-11 in comparison of P&G and HUL
In T-TEST Of HUL company there is significant impact of Debt asset On ROE as the
value is below .05 i.e .001
In T-TEST Of ITC company there is significant impact of Cashflow- Debt On ROE as
the value is below .05 i.e .000
In T-TEST Of Dabur company there is significant impact of current ratio On ROE as
the value is below .05 i.e .000
In T-TEST Of P&G company there is significant impact of Debt asset On ROE as the
value is below .05 i.e .000
In HUL company there is high degree positive correlation between Debt asset and
ROE as the value lie between .75 to 1 i.e .80.
In ITC company there is high degree correlation between CASHFLOW-DEBT and
ROE as the value lie between .75 to 1 i.e .90.
In HUL there is 97.4% impact of independent variable on dependent variables.

Pooja Kundra 71
SUGGESTIONS

 P&G should increase the performance.


 HUL should increase more profits.
 ITC should decrease the expenses
 All the company should utilization of resources
 ITC should enter into new product market and should cover large area
 All the companies should increase the selling expenses
 ITC and P&G should increase the more assets or should more investment.
 As the P&G is perfuming well. it can enter into new product segment for having
more growth opportunities.
 HUL must improve. it can improve more by technical knowhow.

Pooja Kundra 72
CONCLUSION

The various policies that should be applied in an organization on the basis of my study of
financial analysis of organization are as follows The FMCG companies will give more
attention on the management of the profitability so that it can be increased by these
companies and the financial efficiency can be improved. The companies will keep a close
watch on the financial statements The companies will also insist that cash recoveries will
be more. Health, Safety and Welfare of employees and others affected by the business
undertaking will be treated with a level of importance equal to that of any other function
The management of the FMCG sector is efficient enough but the further improvement
will be made

Pooja Kundra 73
BIBLIOGRAPHY

Pooja Kundra 74
BIBLIOGRAPHY

BOOKS:
1) Pandey I.M.(4th edition),“Financial Management”

2) Jain, T.R., and Aggarwal, Dr. S.C..(10th edition), “Statistics for M.B.A

3) Murray R. spiege. (9th edition),“Theory and Problem of Statistics”

4) Chandra Parshana. (7th edition), “Financial Management”

5) Khan M.Y. (5th edition),“Financial Management”

6) Periasamy p. . (2th edition),“Financial management

7) Sekran Uma, ( 4th edition),“Business Research Methodology”

8) Kothari C.R.(4th edition),“Research Methodology Methods and Techniques”

9) Beri G.C.(4th edition), “Marketing Research”

10) Jain, ,T.R., and Aggarwal, Dr. S.C.(9th edition ), “Statistics For M.B.A”,

11) Gupta S.P. and Gupta M.P. (12th edition),Statistics for MBA,

12) Goel D.K. & Goel Rajesh “Financial Management”, 4th edition
13) Hair, Black, Tatham” multivariate data analysis
14) Hair, Bush, Ortinau,(edition 3rd) “Marketing research”
15) Ciaran Walsh, “ key management ratios”
Journal:
16) Banerjee kumar performance(16)(jan-june 2003), “performance evaluation of
indian factoring business” vision:the journal of business perspective

17) TOBY.ADOLPHUS(march 2008), “liquidity performance relationship in


Nigerian manufacturing companies” finance of india

18) Chalos peter(autumn 1985), “financial distress” journal of accounting research


There arises risk and responsibility relationship

Pooja Kundra 75
19) Jones john Michael(1997), “a comparative study of the use of financial graphs in
the annual corporate annual reports” journal of international financial
management and accounting
20) Financial analysis may,2006:-This gave different aspects related to financial
analysis
21) Patterson J. Wayne On measuring company performance within a supply
chain”,international journal of production research
22) Kastiya shweta and bardia S C(2010), “liquidity management and
control”journal of accounting research
NEWSPAPERS& MAGZINES:

23) Phuskele .Preeti,(2009), “ICFAI Reader”, Researcher has studied liquidity and
financial stability.
24) Rudzki.Robert.A, (April13, 2011), “supply chain management review”,
Researcher has studied about the working capital improvement.

25) Perkin.Nic,(April, 2012), “Structure Magazine”, Researcher has studied about


tools.
26) Veni Dr. P,(December,2002), “The Management Accountant”, Researcher has
studied sources of funds.
27) Garg.Mahesh Chand,(Feburary,2002), “The Management Accountant”,
Researcher has studied factors of financial analysis.
28) Chakaraborty.Kaushik,(March,2010), “ICFAI Reader”, Researcher has studied
profitability relationship with EPS.
29) .Kumar. Shilpa,(April26,2010), “Business World”, Researcher has studied what
type of tools best for company.
Websites
30) (online available)www.equity.master.com
31) (online available)www.investopedia.com
32) (online available)www.hindustan unilever.com
33) (online available)www.ITC.com
34) (online available)www.themedica.com:
35) (online available)http://devident_payout_ratio:
36) (online available)http://stocks.about.com/od/evaluatingstocks/a/dpr.htm:

Pooja Kundra 76
37) (online available)http://investopedia.com
38) (online available)http://financial
39) (online available)http://onlinelibrary.wiley.com/doi/10.1111/j.1467-
8268.2003.00072.
40) (Online available)www.Search.ebscohost.com

Pooja Kundra 77
ANNEXURE-I
Balance Sheet of Hindustan Unilever ------------------- in Rs. Cr. -------------------

Mar '18 Mar '17 Mar '16 Mar '15 Mar '14

12 mths 12 mths 12 mths 15 mths 12 mths

Sources Of Funds
Total Share Capital 216.15 215.95 218.17 217.99 217.75

Equity Share Capital 216.15 215.95 218.17 217.99 217.75

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 3,296.11 2,417.30 2,364.68 1,842.85 1,220.82

Revaluation Reserves 0.67 0.67 0.67 0.67 0.67

Networth 3,512.93 2,633.92 2,583.52 2,061.51 1,439.24


Secured Loans 0.00 0.00 0.00 144.65 25.52

Unsecured Loans 0.00 0.00 0.00 277.30 63.01

Total Debt 0.00 0.00 0.00 421.95 88.53

Total Liabilities 3,512.93 2,633.92 2,583.52 2,483.46 1,527.77

Mar '18 Mar '17 Mar '16 Mar '15 Mar '14

12 mths 12 mths 12 mths 15 mths 12 mths

Application Of Funds
Gross Block 3,574.67 3,759.62 3,581.96 2,881.73 2,669.08

Less: Accum. Depreciation 1,416.88 1,590.46 1,419.85 1,274.95 1,146.57

Net Block 2,157.79 2,169.16 2,162.11 1,606.78 1,522.51


Capital Work in Progress 210.89 299.08 273.96 472.07 185.64

Investments 2,438.21 1,260.68 1,264.08 332.62 1,440.81


Inventories 2,516.65 2,811.26 2,179.93 2,528.86 1,953.60

Sundry Debtors 678.99 943.20 678.44 536.89 443.37


Cash and Bank Balance 510.05 281.91 231.37 190.59 200.11

Pooja Kundra 78
Total Current Assets 3,705.69 4,036.37 3,089.74 3,256.34 2,597.08

Loans and Advances 1,314.72 1,099.72 1,068.31 1,196.95 1,083.28

Fixed Deposits 1,319.99 1,358.10 1,660.84 1,586.76 0.75

Total CA, Loans & Advances 6,340.40 6,494.19 5,818.89 6,040.05 3,681.11

Deffered Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 5,688.44 6,264.21 5,493.97 4,440.08 4,028.41

Provisions 1,945.92 1,324.98 1,441.55 1,527.98 1,273.90

Total CL & Provisions 7,634.36 7,589.19 6,935.52 5,968.06 5,302.31

- -
Net Current Assets -1,095.00 -1,116.63 71.99
1,293.96 1,621.20
Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00

Total Assets 3,512.93 2,633.92 2,583.52 2,483.46 1,527.76

Contingent Liabilities 1,009.23 836.96 468.49 417.26 494.46

Book Value (Rs) 16.25 12.19 11.84 9.45 6.61

Pooja Kundra 79
Profit & Loss account of Hindustan
------------------- in Rs. Cr. -------------------
Unilever

Mar '18 Mar '17 Mar '16 Mar '15 Mar '14

12 mths 12 mths 12 mths 15 mths 12 mths

Income
Sales Turnover 23,181.09 20,598.89 18,462.34 21,927.23 14,937.88

Excise Duty 1,062.45 908.98 693.22 1,422.95 1,057.32


Net Sales 22,118.64 19,689.91 17,769.12 20,504.28 13,880.56

Other Income 363.32 439.48 199.73 276.54 428.37


Stock Adjustments -131.00 295.08 19.47 434.33 162.06

Total Income 22,350.96 20,424.47 17,988.32 21,215.15 14,470.99

Expenditure
Raw Materials 11,701.45 10,494.33 9,003.97 11,380.05 7,542.78

Power & Fuel Cost 285.21 274.74 244.34 301.37 198.89

Employee Cost 1,095.54 961.27 936.30 1,152.12 767.81

Other Manufacturing Expenses 637.16 551.25 412.19 297.34 204.10

Selling and Admin Expenses 4,333.27 4,366.30 3,737.52 3,857.48 2,561.12

Miscellaneous Expenses 609.81 672.61 656.57 985.31 691.49

Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00

Total Expenses 18,662.44 17,320.50 14,990.89 17,973.67 11,966.19

Mar '18 Mar '17 Mar '16 Mar '15 Mar '14

12 mths 12 mths 12 mths 15 mths 12 mths

Operating Profit 3,325.20 2,664.49 2,797.70 2,964.94 2,076.43


PBDIT 3,688.52 3,103.97 2,997.43 3,241.48 2,504.80

Interest 1.24 0.24 6.98 25.32 25.50


PBDT 3,687.28 3,103.73 2,990.45 3,216.16 2,479.30

Pooja Kundra 80
Depreciation 218.25 220.83 184.03 195.30 138.36

Other Written Off 0.00 0.00 0.00 0.00 0.00

Profit Before Tax 3,469.03 2,882.90 2,806.42 3,020.86 2,340.94

Extra-ordinary items 7.65 -3.06 43.97 48.53 1.67

PBT (Post Extra-ord Items) 3,476.68 2,879.84 2,850.39 3,069.39 2,342.61

Tax 785.28 573.87 648.36 572.94 417.14

Reported Net Profit 2,691.40 2,305.97 2,202.03 2,500.71 1,769.06


Total Value Addition 6,960.99 6,826.17 5,986.92 6,593.62 4,423.41

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 1,620.94 1,410.60 1,417.94 1,634.51 1,976.12

Corporate Dividend Tax 262.96 231.36 238.03 277.79 355.50

Per share data (annualised)


Shares in issue (lakhs) 21,615.12 21,594.72 21,816.87 21,798.76 21,774.63

Earning Per Share (Rs) 12.45 10.68 10.09 11.47 8.12


Equity Dividend (%) 750.00 650.00 650.00 750.00 900.00

Book Value (Rs) 16.25 12.19 11.84 9.45 6.61

Pooja Kundra 81
Profit & Loss account of ITC ------------------- in Rs. Cr. -------------------

Mar '18 Mar '17 Mar '16 Mar '15 Mar '14

12 mths 12 mths 12 mths 12 mths 12 mths

Income
Sales Turnover 35,247.25 30,633.57 26,399.63 23,247.84 21,467.38

Excise Duty 10,157.14 9,512.74 7,832.18 8,262.03 7,435.18

Net Sales 25,090.11 21,120.83 18,567.45 14,985.81 14,032.20

Other Income 761.25 775.76 545.05 426.21 516.50

Stock Adjustments 149.30 308.42 -447.54 630.30 32.46

Total Income 26,000.66 22,205.01 18,664.96 16,042.32 14,581.16

Expenditure
Raw Materials 9,933.19 8,601.13 7,140.69 6,864.96 6,307.79

Power & Fuel Cost 453.19 421.68 387.34 394.12 309.90

Employee Cost 1,265.41 1,178.46 1,014.87 903.37 745.00

Other Manufacturing Expenses 634.80 560.57 413.79 402.88 73.52

Selling and Admin Expenses 2,691.41 2,408.03 2,093.87 1,684.41 1,609.33

Miscellaneous Expenses 1,339.60 1,120.89 1,008.91 516.90 682.72

Preoperative Exp Capitalised 0.00 -60.54 -71.88 -72.55 -112.75

Total Expenses 16,317.60 14,230.22 11,987.59 10,694.09 9,615.51

Mar '18 Mar '17 Mar '16 Mar '15 Mar '14

12 mths 12 mths 12 mths 12 mths 12 mths

Operating Profit 8,921.81 7,199.03 6,132.32 4,922.02 4,449.15


PBDIT 9,683.06 7,974.79 6,677.37 5,348.23 4,965.65

Interest 87.02 78.11 90.28 47.65 24.61

PBDT 9,596.04 7,896.68 6,587.09 5,300.58 4,941.04

Depreciation 698.51 655.99 608.71 549.41 438.46


Other Written Off 0.00 0.00 0.00 0.00 0.00

Pooja Kundra 82
Profit Before Tax 8,897.53 7,240.69 5,978.38 4,751.17 4,502.58

Extra-ordinary items 2.51 35.21 48.65 81.52 117.41

PBT (Post Extra-ord Items) 8,900.04 7,275.90 6,027.03 4,832.69 4,619.99

Tax 2,737.08 2,287.69 1,965.43 1,565.13 1,480.97

Reported Net Profit 6,162.37 4,987.61 4,061.00 3,263.59 3,120.10


Total Value Addition 6,384.41 5,629.09 4,846.90 3,829.13 3,307.72

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 3,518.29 3,443.47 3,818.18 1,396.53 1,319.01

Corporate Dividend Tax 570.75 558.62 634.15 237.34 224.17

Per share data (annualised)


Shares in issue (lakhs) 78,184.24 77,381.44 38,181.77 37,744.00 37,686.10

Earning Per Share (Rs) 7.88 6.45 10.64 8.65 8.28


Equity Dividend (%) 450.00 445.00 1,000.00 370.00 350.00

Book Value (Rs) 23.97 20.55 36.69 36.24 31.85

Pooja Kundra 83
Balance Sheet of ITC ------------------- in Rs. Cr. -------------------

Mar '18 Mar '17 Mar '16 Mar '15 Mar '14

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds

Total Share Capital 781.84 773.81 381.82 377.44 376.86

Equity Share Capital 781.84 773.81 381.82 377.44 376.86

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share
0.00 0.00 0.00 0.00 0.00
Capital

Reserves 17,957.00 15,126.12 13,628.17 13,302.55 11,624.69

Revaluation Reserves 53.05 53.34 54.39 55.09 56.12

Networth 18,791.89 15,953.27 14,064.38 13,735.08 12,057.67

Secured Loans 1.77 1.94 0.00 11.63 5.57

Unsecured Loans 77.32 97.26 107.71 165.92 208.86

Total Debt 79.09 99.20 107.71 177.55 214.43

Total Liabilities 18,870.98 16,052.47 14,172.09 13,912.63 12,272.10

Mar '18 Mar '17 Mar '16 Mar '15 Mar '14

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds

Gross Block 13,926.34 12,765.82 11,967.86 10,558.65 8,959.70

Less: Accum. Depreciation 4,819.66 4,420.75 3,825.46 3,286.74 2,790.87

Net Block 9,106.68 8,345.07 8,142.40 7,271.91 6,168.83

Capital Work in Progress 2,572.06 1,333.40 1,008.99 1,214.06 1,126.82

Investments 6,316.59 5,554.66 5,726.87 2,837.75 2,934.55

Inventories 5,637.83 5,267.53 4,549.07 4,599.72 4,050.52

Sundry Debtors 986.02 907.62 858.80 668.67 736.93

Cash and Bank Balance 140.50 98.77 120.16 68.73 153.34

Total Current Assets 6,764.35 6,273.92 5,528.03 5,337.12 4,940.79

Loans and Advances 1,952.54 2,173.89 1,929.16 2,150.21 1,949.29

Fixed Deposits 2,678.43 2,144.47 1,006.12 963.66 416.91

Total CA, Loans & Advances 11,395.32 10,592.28 8,463.31 8,450.99 7,306.99

Pooja Kundra 84
Deffered Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 6,108.60 5,668.10 4,619.54 4,121.59 3,619.76

Provisions 4,411.07 4,104.84 4,549.94 1,740.49 1,645.33

Total CL & Provisions 10,519.67 9,772.94 9,169.48 5,862.08 5,265.09

Net Current Assets 875.65 819.34 -706.17 2,588.91 2,041.90

Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00

Total Assets 18,870.98 16,052.47 14,172.09 13,912.63 12,272.10

Contingent Liabilities 2,533.61 2,228.40 258.73 261.36 308.08

Book Value (Rs) 23.97 20.55 36.69 36.24 31.85

Pooja Kundra 85
Balance Sheet of Nestle India ------------------- in Rs. Cr. -------------------

Mar '18 Mar '17 Mar '16 Mar '15 Mar '14

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds
Total Share Capital 96.42 96.42 96.42 96.42 96.42
Equity Share Capital 96.42 96.42 96.42 96.42 96.42
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 1,177.54 759.00 484.85 376.93 322.01
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Networth 1,273.96 855.42 581.27 473.35 418.43
Secured Loans 0.84 0.00 0.00 0.82 2.87
Unsecured Loans 970.03 0.00 0.00 0.00 0.00

Total Debt 970.87 0.00 0.00 0.82 2.87


Total Liabilities 2,244.83 855.42 581.27 474.17 421.30
Mar '18 Mar '17 Mar '16 Mar '15 Mar '14

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds
Gross Block 2,552.21 1,854.70 1,640.79 1,404.85 1,179.77
Less: Accum. Depreciation 976.46 841.96 744.59 651.85 577.96
Net Block 1,575.75 1,012.74 896.20 753.00 601.81
Capital Work in Progress 1,418.64 348.91 79.63 109.17 73.70
Investments 134.37 150.68 203.26 34.90 94.40
Inventories 734.04 575.95 498.74 434.91 401.22
Sundry Debtors 115.42 63.29 64.19 45.59 53.49
Cash and Bank Balance 25.55 19.45 26.73 12.66 15.75
Total Current Assets 875.01 658.69 589.66 493.16 470.46

Pooja Kundra 86
Loans and Advances 256.36 200.17 184.85 162.67 186.23
Fixed Deposits 201.66 235.84 128.86 181.03 22.01
Total CA, Loans & Advances 1,333.03 1,094.70 903.37 836.86 678.70
Deffered Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 1,113.13 843.68 666.39 582.44 529.51
Provisions 1,103.83 907.94 834.79 677.32 497.79
Total CL & Provisions 2,216.96 1,751.62 1,501.18 1,259.76 1,027.30

Net Current Assets -883.93 -656.92 -597.81 -422.90 -348.60


Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00

Total Assets 2,244.83 855.41 581.28 474.17 421.31

Contingent Liabilities 0.00 0.00 63.07 84.90 63.27


Book Value (Rs) 132.13 88.72 60.29 49.09 43.40

Pooja Kundra 87
Profit & Loss account of Nestle India ------------------- in Rs. Cr. -------------------

Mar '18 Mar '17 Mar '16 Mar '15 Mar '14

12 mths 12 mths 12 mths 12 mths 12 mths

Income
Sales Turnover 7,682.22 6,382.78 5,232.59 4,472.04 3,647.49

Excise Duty 191.40 122.57 90.69 143.39 146.53

Net Sales 7,490.82 6,260.21 5,141.90 4,328.65 3,500.96

Other Income 12.35 27.25 14.26 29.88 21.24

Stock Adjustments 56.93 83.67 6.30 31.11 71.01

Total Income 7,560.10 6,371.13 5,162.46 4,389.64 3,593.21

Expenditure
Raw Materials 3,671.64 3,168.18 2,478.94 2,153.85 1,763.54

Power & Fuel Cost 295.81 219.20 158.87 159.76 123.94

Employee Cost 546.46 433.44 432.38 314.58 269.44

Other Manufacturing Expenses 120.49 110.91 94.05 73.46 62.14

Selling and Admin Expenses 1,200.14 1,026.88 839.22 736.73 496.22

Miscellaneous Expenses 159.07 130.66 115.98 81.40 172.54

Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00

Total Expenses 5,993.61 5,089.27 4,119.44 3,519.78 2,887.82

Mar '18 Mar '17 Mar '16 Mar '15 Mar '14

12 mths 12 mths 12 mths 12 mths 12 mths

Operating Profit 1,554.14 1,254.61 1,028.76 839.98 684.15


PBDIT 1,566.49 1,281.86 1,043.02 869.86 705.39

Interest 9.06 1.07 1.40 1.64 0.85

PBDT 1,557.43 1,280.79 1,041.62 868.22 704.54


Depreciation 153.33 127.75 111.27 92.36 74.74

Pooja Kundra 88
Other Written Off 0.00 0.00 0.00 0.00 0.00

Profit Before Tax 1,404.10 1,153.04 930.35 775.86 629.80

Extra-ordinary items 0.00 0.00 0.00 0.00 0.00

PBT (Post Extra-ord Items) 1,404.10 1,153.04 930.35 775.86 629.80

Tax 426.38 326.45 261.97 238.74 214.80

Reported Net Profit 961.55 818.66 655.00 534.08 413.81


Total Value Addition 2,321.97 1,921.08 1,640.50 1,365.92 1,124.29

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 467.62 467.62 467.62 409.77 318.17

Corporate Dividend Tax 75.39 77.20 79.47 69.64 52.21

Per share data (annualised)


Shares in issue (lakhs) 964.16 964.16 964.16 964.16 964.16

Earning Per Share (Rs) 99.73 84.91 67.94 55.39 42.92


Equity Dividend (%) 485.00 485.00 485.00 425.00 330.00

Book Value (Rs) 132.13 88.72 60.29 49.09 43.40

Pooja Kundra 89
Balance Sheet of Dabur India ------------------- in Rs. Cr. -------------------

Mar '18 Mar '17 Mar '16 Mar '15 Mar '14

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds

Total Share Capital 174.21 174.07 86.76 86.51 86.40

Equity Share Capital 174.21 174.07 86.76 86.51 86.40

Share Application Money 0.00 0.00 0.14 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 1,128.28 927.09 662.48 651.69 441.92

Revaluation Reserves 0.78 0.00 0.00 0.00 0.00

Networth 1,303.27 1,101.16 749.38 738.20 528.32

Secured Loans 19.12 17.57 24.27 8.26 16.45

Unsecured Loans 254.15 235.78 81.80 130.72 0.24

Total Debt 273.27 253.35 106.07 138.98 16.69

Total Liabilities 1,576.54 1,354.51 855.45 877.18 545.01

Mar '18 Mar '17 Mar '16 Mar '15 Mar '14

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds

Gross Block 883.23 766.88 687.23 518.77 467.93

Less: Accum. Depreciation 297.90 269.32 236.28 210.45 189.77

Net Block 585.33 497.56 450.95 308.32 278.16

Capital Work in Progress 25.12 11.92 23.31 51.71 16.26

Investments 552.72 519.23 348.51 232.05 270.37

Inventories 528.57 460.58 298.44 261.72 201.15

Sundry Debtors 224.17 202.46 130.48 112.36 100.46

Cash and Bank Balance 261.20 26.08 48.80 32.16 67.36

Total Current Assets 1,013.94 689.12 477.72 406.24 368.97

Loans and Advances 603.61 461.81 348.94 455.65 206.94

Fixed Deposits 30.09 166.33 115.11 111.53 0.90

Total CA, Loans & Advances 1,647.64 1,317.26 941.77 973.42 576.81

Pooja Kundra 90
Deffered Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 695.70 539.05 471.73 381.87 345.16

Provisions 592.40 535.36 440.10 315.10 265.41

Total CL & Provisions 1,288.10 1,074.41 911.83 696.97 610.57

Net Current Assets 359.54 242.85 29.94 276.45 -33.76

Miscellaneous Expenses 53.83 82.95 2.74 8.64 13.95

Total Assets 1,576.54 1,354.51 855.45 877.17 544.98

Contingent Liabilities 1,337.82 1,075.89 173.48 174.15 171.24

Book Value (Rs) 7.48 6.33 8.64 8.53 6.11

Pooja Kundra 91
Profit & Loss account of Dabur India ------------------- in Rs. Cr. -------------------

Mar '18 Mar '17 Mar '16 Mar '15 Mar '14

12 mths 12 mths 12 mths 12 mths 12 mths

Income

Sales Turnover 3,798.05 3,305.42 2,891.00 2,435.85 2,128.02

Excise Duty 38.72 30.99 23.58 27.52 34.39

Net Sales 3,759.33 3,274.43 2,867.42 2,408.33 2,093.63

Other Income 6.89 39.16 27.95 29.30 17.92

Stock Adjustments 59.33 78.31 9.68 38.89 3.04

Total Income 3,825.55 3,391.90 2,905.05 2,476.52 2,114.59

Expenditure

Raw Materials 2,092.87 1,740.68 1,393.97 1,271.74 1,026.98

Power & Fuel Cost 46.41 42.39 35.43 36.63 38.42

Employee Cost 243.36 230.84 212.34 167.32 149.69

Other Manufacturing Expenses 25.22 25.21 22.74 17.59 15.59

Selling and Admin Expenses 605.84 589.09 557.26 425.16 400.82

Miscellaneous Expenses 145.04 100.15 103.84 84.68 75.32

Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00

Total Expenses 3,158.74 2,728.36 2,325.58 2,003.12 1,706.82

Mar '18 Mar '17 Mar '16 Mar '15 Mar '14

12 mths 12 mths 12 mths 12 mths 12 mths

Operating Profit 659.92 624.38 551.52 444.10 389.85

PBDIT 666.81 663.54 579.47 473.40 407.77

Interest 13.40 12.93 13.28 14.47 10.92

PBDT 653.41 650.61 566.19 458.93 396.85

Depreciation 36.81 37.73 31.91 27.42 25.75

Other Written Off 29.07 16.60 5.66 3.94 5.67

Profit Before Tax 587.53 596.28 528.62 427.57 365.43

Extra-ordinary items 0.00 0.25 -0.19 -0.72 -0.86

PBT (Post Extra-ord Items) 587.53 596.53 528.43 426.85 364.57

Pooja Kundra 92
Tax 123.79 124.85 93.70 51.44 48.40

Reported Net Profit 463.24 471.41 433.33 373.55 316.77

Total Value Addition 1,065.87 987.68 931.61 731.38 679.85

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 226.47 200.19 173.60 151.39 129.60

Corporate Dividend Tax 36.74 32.82 29.50 25.73 22.03

Per share data (annualised)

Shares in issue (lakhs) 17,421.01 17,407.24 8,675.86 8,650.76 8,640.23

Earning Per Share (Rs) 2.66 2.71 4.99 4.32 3.67

Equity Dividend (%) 130.00 115.00 200.00 175.00 150.00

Book Value (Rs) 7.48 6.33 8.64 8.53 6.11

Pooja Kundra 93
Balance Sheet of Procter and Gamble Hygiene and
------------------- in Rs. Cr. -------------------
Health Care

Mar '18 Mar '17 Mar '16 Mar '15 Mar '14

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds
Total Share Capital 32.46 32.46 32.46 32.46 32.46
Equity Share Capital 32.46 32.46 32.46 32.46 32.46
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 664.58 568.17 502.18 407.58 314.18
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Networth 697.04 600.63 534.64 440.04 346.64


Secured Loans 0.00 0.00 0.00 0.00 0.00
Unsecured Loans 0.00 0.00 0.00 0.00 0.00
Total Debt 0.00 0.00 0.00 0.00 0.00
Total Liabilities 697.04 600.63 534.64 440.04 346.64
Mar '18 Mar '17 Mar '16 Mar '15 Mar '14

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds
Gross Block 345.92 312.90 242.97 221.82 203.09
Less: Accum. Depreciation 147.52 122.52 112.57 89.54 80.01

Net Block 198.40 190.38 130.40 132.28 123.08


Capital Work in Progress 28.91 7.64 66.44 24.51 12.88

Investments 0.00 0.00 0.00 0.00 0.00


Inventories 92.27 65.33 54.41 53.98 46.52
Sundry Debtors 48.15 31.02 28.68 22.51 13.34
Cash and Bank Balance 182.37 3.76 8.76 4.52 6.67
Total Current Assets 322.79 100.11 91.85 81.01 66.53

Pooja Kundra 94
Loans and Advances 548.45 461.28 322.40 336.65 208.95
Fixed Deposits 0.00 126.19 223.57 83.51 159.81
Total CA, Loans & Advances 871.24 687.58 637.82 501.17 435.29
Deffered Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 309.72 193.29 209.05 127.44 142.58
Provisions 91.77 91.69 90.96 90.50 82.03
Total CL & Provisions 401.49 284.98 300.01 217.94 224.61

Net Current Assets 469.75 402.60 337.81 283.23 210.68


Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00

Total Assets 697.06 600.62 534.65 440.02 346.64

Contingent Liabilities 55.96 62.89 63.85 55.06 25.55


Book Value (Rs) 214.73 185.03 164.70 135.56 106.79

Pooja Kundra 95
Profit & Loss account of Procter and Gamble
------------------- in Rs. Cr. -------------------
Hygiene and Health Care

Mar '18 Mar '17 Mar '16 Mar '15 Mar '14

12 mths 12 mths 12 mths 12 mths 12 mths

Income
Sales Turnover 1,303.85 1,037.99 914.19 773.03 652.65

Excise Duty 6.44 36.77 12.97 0.22 8.70

Net Sales 1,297.41 1,001.22 901.22 772.81 643.95

Other Income 50.92 32.23 22.42 19.74 13.53

Stock Adjustments 16.67 2.76 -0.47 4.10 13.18

Total Income 1,365.00 1,036.21 923.17 796.65 670.66

Expenditure
Raw Materials 547.11 395.20 282.60 239.68 190.78

Power & Fuel Cost 9.84 6.13 6.19 7.84 8.26

Employee Cost 64.66 50.21 72.52 59.21 54.65

Other Manufacturing Expenses 3.87 90.09 75.62 66.30 64.07

Selling and Admin Expenses 0.00 251.01 193.38 159.17 131.29

Miscellaneous Expenses 488.39 42.30 31.30 30.21 29.38

Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00

Total Expenses 1,113.87 834.94 661.61 562.41 478.43

Mar '18 Mar '17 Mar '16 Mar '15 Mar '14

12 mths 12 mths 12 mths 12 mths 12 mths

Operating Profit 200.21 169.04 239.14 214.50 178.70


PBDIT 251.13 201.27 261.56 234.24 192.23

Interest 0.03 0.03 0.03 0.00 0.02

PBDT 251.10 201.24 261.53 234.24 192.21


Depreciation 28.08 22.16 25.03 14.37 12.12

Pooja Kundra 96
Other Written Off 0.00 0.00 0.00 0.00 0.00

Profit Before Tax 223.02 179.08 236.50 219.87 180.09

Extra-ordinary items 0.00 0.00 0.00 11.79 0.48

PBT (Post Extra-ord Items) 223.02 179.08 236.50 231.66 180.57

Tax 41.73 25.87 53.86 52.81 49.15

Reported Net Profit 181.29 150.88 179.77 178.85 131.42


Total Value Addition 566.76 439.75 379.00 322.73 287.65

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 73.04 73.04 73.04 73.04 64.92

Corporate Dividend Tax 11.85 11.85 12.13 12.41 11.03

Per share data (annualised)


Shares in issue (lakhs) 324.61 324.61 324.61 324.61 324.61

Earning Per Share (Rs) 55.85 46.48 55.38 55.10 40.48


Equity Dividend (%) 225.00 225.00 225.00 225.00 200.00

Book Value (Rs) 214.73 185.03 164.70 135.56 106.79

Pooja Kundra 97