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Submitted By:
Vishal Shah ()
Manish Modi ()
Kunal Maheria ()
Acknowledgement
My Sincere Thanks to Prof. Megha Shah for initiating the project for the
betterment of the students.
Contents
07 Chapter # 1
09 Chapter # 2
16 Horizontal balance-sheet
22 Vertical balance-sheet
25 Analytical balance-sheet
28 References
List of annexure
Chapter # 1 - Introduction to company
Established in 1897, the Godrej group has grown in India from the days
of the charkha to nights at the call centres. The founder, Ardeshir Godrej,
lawyer-turned-locksmith, was a persistent inventor and a strong visionary who
could see the spark in the future. His inventions, manufactured by his brother
Pirojsha Godrej, were the foundation of today’s Godrej Empire.
Contemporary:
At Godrej Consumer Products Limited (GCPL) they have during the year
under review, endeavoured to put in place all the building blocks so that they
are optimally prepared for the future and ensure that they are best placed to
strengthen their growth and create value for all their stakeholders.
“We are dedicated to Deliver Superior Stakeholder Value by providing
solutions to existing and emerging consumer needs in the Household &
Personal Care Business. We will achieve this through Enduring Trust and
Relentless Innovation delivered with Passion and Entrepreneurial Spirit.” is
the vision of the company.
Corporate Information:
• Board of Directors
i. Rama Bijapurkar
ii. D. Shivakumar
iii. Bharat Doshi
iv. Nadir Godrej
v. Hoshedar Press
vi. Adi Godrej
vii. Jamshyd Godrej
viii. Aman Mehta
ix. A. Mahendran
x. Dr. Omkar Goswami
xi. Dalip Sehgal
xii. Bala Balachandran
• Management Committee
i. Jimmy Anklesaria
ii. Sumit Mitra
iii. Dr. Rakesh Sinha
iv. Dr. Sunder Mahadevan
v. Dalip Sehgal
vi. P. Ganesh
vii. Bhupendar Sodhi
• Company Secretary
P. Ganesh
• Auditors
Kalyaniwalla & Mistry
Chapter # 2 – Financial Statement Analysis
OBJECTIVES:
• Financial statement analysis is the collective name for the tools and
techniques that are intended to provide relevant information to decision makers.
• The purpose of financial statement analysis is to assess a company’s
financial health and performance.
• Financial statement analysis consists of comparisons for the same company
over periods of time and comparisons of different companies either in the same
industry or in different industries.
• Financial statement analysis enables investors and creditors to:
1. Evaluate past performance and financial position.
2. Predict future performance.
Standards of Comparison:
• In using the results of financial statement analysis, financial analysts look for
pertinent standards of comparisons to determine whether the results of their
analysis are favourable of unfavourable.
• For this purpose, comparisons are made with
1. General rule-of-thumb indicators/ benchmark.
2. Past performance of the company.
3. Industry standards.
Sources of Information:
1. Company Reports
2. Company Website
3. Business Periodicals
4. Information Services
1. Horizontal Analysis
2. Trend Analysis
3. Vertical Analysis
4. Analytical Balance-sheet
5. Multi-step income statement
Horizontal Analysis:
Trend Analysis:
Analytical Balance-sheet:
Though the vertical balance-sheet itself is more analytical than its
horizontal counterpart, it can be made further analytical from the angle of
the equity shareholders. It shows the net assets possessed by the owners
of the company. It starts with the ‘Application of funds’ side as against
the vertical balance sheet that starts with ‘Sources of Funds’ side.
Multi-step profit & loss account of Godrej Consumers Product Ltd for the
year ended on 31 March, 2010
Horizontal Analysis:
Horizontal profit & loss account of Godrej Consumers Product Ltd for the
year ended on 31 March, 2010
Particulars Current year Previous year Increase or Increase or
amount amount Decrease Decrease
(Amt. In Lac) (Amt. In Lac) (Amt. In (Amt. In
Rs.) %)
Gross sales 129433.98 112660.41 16773.57 14.89
Less: Excise Duty 2645.86 4226.17 (1580.31) (37.39)
Net Sales 126788.12 108434.23 18353.89 16.93
o PBDIT : 67.15%
o PBIT : 73.58%
o PBTEOI : 60.90%
o PBT : 60.90%
o PAT : 54.20%
• Profit after tax increased by 54.20% compare with sales and other income
is increase by 16.93%.
Shareholder’s Funds
Loan Funds
APPLICATION OF
FUNDS:
Fixed Assets
Interpretation:
• Gross block of fixed assets increased by 2.72% and Net block of fixed
assets decrease by 2.49% because there is an increase in depreciation
compare to previous year.
• So, net current asset also decreased in 2009-10 by 52.69% than previous
year 2008-09.
Vertical Analysis:
Vertical profit & loss account of Godrej Consumers Product Ltd for the year
ended on 31 March, 2010
Interpretation:
Loan Funds
APPLICATION OF
FUNDS:
Fixed Assets
Interpretation:
• This year share of the Fixed Assets of the company declined than
previous year. This year one can see the worried increment in the
inventories. It has been piled up more than 30% than last year.
• This year company transfers more of the profit to reserves means to
increase share of the Shareholder’s fund in the total sources. In place of
last year’s only 85%, this year its increases to 95%. This shows that more
reserves are transferred to reserves.
• To get rid of piles of stock, company increase its sales on credit. That’s
why inventories share declined to 19% in place of last year’s 21%. And
debtors were increased to 3314.95 Lac in place of last year’s 981.04 Lac.
Analytical Balance-sheet:
Analytical Balance Sheet as on March 31, 2010
SOURCES OF FUNDS:
1. Shareholders’ Funds
a) Share Capital 3081.90 2569.54
b) Reserves and Surplus 79664.63 51122.41
82746.53 53691.94
Less:
Miscellaneous Expenditure - -
EQUITY OWNERS’ FUND 82746.53 53691.94
Trend Analysis:
Trend analysis for the Godrej Consumers Product Ltd from 2007 to 2010
Interpretation:
Year 2006-2007 has been taken as the base year for the trend analysis.
Sales and other income has increased since 2006-07 and has continued
the trend till 2009-10. This shows the company has gained popularity in
the market.
Profit before tax has steadily increased since 2006-07 to 2008-09 and has
seen huge increase in 2009-10
Profit after tax is following the same trend as profit before tax and it has
also seen gigantic boost in the year 2009-10. The company has doubled
its net profit in the given period.
Net block of the company has increased since 2006-07 till 2008-09 and
has gone down in the year 2009-10
The net current assets of the company are less than the net liabilities of
the company for the initial phase but then company has increased it
hugely in 2008-09 and again it has seen a plunge in the year 2009-10.
References:
www.godrej.com