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Summer Training Presentation

  1. 1. SUMMER TRAINING PROJECT GlaxoSmithKline Consumer Health Care Ltd. Presented By: Aanchal Gupta MBA 2-A Roll No. 94972238132
  2. 2. Introduction- Food Processing Industry <ul><li>India-world's second largest producer of food next, has potential of being biggest with food & agricultural sector. </li></ul><ul><li>Total food production in India to double in 10 yrs </li></ul><ul><li>India accounts for less than 1.5 per cent of international food trade </li></ul><ul><li>Industry has highest number of plants approved by US Food & Drug Administration (FDA) outside USA. </li></ul>
  3. 3. Sectors- Indian Food Processing Industry <ul><li>Fruit & vegetables </li></ul><ul><li>Diary </li></ul><ul><li>Meat & poultry </li></ul><ul><li>Beverages </li></ul><ul><li>Fisheries </li></ul><ul><li>Grain processing </li></ul><ul><li>Packaged foods </li></ul><ul><li>Staple foods  </li></ul><ul><li>Others- confectionery, chocolates & cocoa products, Soya-based products, mineral water, high protein foods. </li></ul>
  4. 4. Major Players in Food Processing Industry
  5. 5. Marico India Ltd. <ul><li>Marico- operating in Consumer Products & Services in Global Beauty & Wellness space. </li></ul><ul><li>Marico’s Products & Services- Hair care, Skin Care & Healthy Foods. </li></ul><ul><li>Marico’s Turnover- Rs. 19.1 billion during 2007-08. </li></ul><ul><li>Marico brands- Parachute, Saffola, Sweekar, Hair & Care, Nihar, Shanti, Mediker, Revive, Manjal, Kaya, Sundari, Aromatic, Camelia, Fiancee & HairCode. </li></ul>
  6. 6. Britannia Industries Ltd. <ul><li>Britannia – 1 of India's biggest brands & pre-eminent food brand of country in 21 st century. </li></ul><ul><li>50-50 Maska-Chaska - India's most successful product. </li></ul><ul><li>In 2002- Britannia's New Business Division formed joint venture with Fonterra, Britannia New Zealand Foods Pvt. Ltd. born. </li></ul><ul><li>Company in manufacturing & selling biscuits, bread, rusk, cakes & dairy products. </li></ul>
  7. 7. Nestle India Ltd. <ul><li>Nestlé's in India started in 1912 as Nestlé Anglo-Swiss Condensed Milk Company (Export) Ltd. </li></ul><ul><li>Amongst India's 'Most Respected Companies' & 'Top Wealth Creators of India'. </li></ul><ul><li>Subsidiary of Nestlé S.A. of Switzerland. </li></ul><ul><li>Provides Indian Consumers products: </li></ul><ul><ul><li>global standards </li></ul></ul><ul><ul><li>commitment to constant growth </li></ul></ul><ul><ul><li>commitment to shareholder satisfaction </li></ul></ul>
  8. 8. Dabur India Ltd. <ul><li>Birth of Dabur - year 1884 in small Calcutta pharmacy, where Dr. S. K. Burman launched his mission of making health care products. </li></ul><ul><li>Dr. Burman expanded operations by setting manufacturing plant for mass production of formulations in 1896. </li></ul><ul><li>Establishment of Research Labs- Need to develop scientific processes & quality checks </li></ul><ul><li>After mergers & joint ventures, 3 separate divisions created for better operation & management namely: </li></ul><ul><ul><li>Health Care Products Division </li></ul></ul><ul><ul><li>Family Products Division </li></ul></ul><ul><ul><li>Dabur Ayurvedic Specialities Limited. </li></ul></ul>
  9. 9. Dabur’s Product Categories <ul><li>Health Care </li></ul><ul><li>Personal Care </li></ul><ul><li>Foods </li></ul><ul><li>Home Care </li></ul><ul><li>Consumer Health - OTC </li></ul><ul><li>Consumer Health – Ethical </li></ul>
  10. 10. GLAXOSMITHKLINE CONSUMER HEALTHCARE LIMITED
  11. 11. Company Profile <ul><li>Company: GlaxoSmithKline Consumer Healthcare Limited </li></ul><ul><li>  </li></ul><ul><li>Head office : Gurgaon (Haryana) </li></ul><ul><li>Registered Office: Nabha (Punjab) </li></ul><ul><li>  </li></ul><ul><li>Status: Multinational Company (originally U.K. Firm) </li></ul><ul><li>Turnover : Rs. 20,251.2 (Millions), 11.5% growth as compared to last year   </li></ul><ul><li>Export to : Bangladesh, Myanmar, Sri Lanka, Middle East Nepal, Hong Kong, Malaysia, & Fiji </li></ul>
  12. 12. Introduction to GSKCH <ul><li>GSKCH is Indian associate of Glaxo Smithkline Plc, U.K. </li></ul><ul><li>Largest players in health food drinks industry in India </li></ul><ul><li>Manufacturing plants located in Nabha, Rajahmundry & Sonepat, has total workforce of over 2700 people </li></ul><ul><li>Flagship product- Horlicks </li></ul><ul><li>Distribution network in India- 1800 wholesalers & direct coverage of over 4,00,000 retail outlets. </li></ul>
  13. 13. Mission <ul><li>“ To improve the quality of human life by enabling people to do more, feel better and live Longer.” </li></ul>
  14. 14. Historical Background <ul><li>1955- Horlicks manufactured by Horlicks Ltd. in Slough (England), imported, bottled & sold in India </li></ul><ul><li>May 31, 1958- Pratap Singh laid foundation stone at Nabha. </li></ul><ul><li>24 th March 1960- factory went into production. </li></ul><ul><li>1969- Horlicks Group disposed off their holding in India & U.K. to “BEECHAM GROUP OF INDUSTRIES&quot; </li></ul><ul><li>1979- Beecham India (Pvt.) Ltd. Mumbai merged with Hindustan Milk Food Manufacturers Ltd. & name changed to H.M.M. Beecham Group ltd. </li></ul>
  15. 15. Contd… <ul><li>SmithKline U.S.A. merged on September 16, 1991 to form Smith Kline Beecham Consumer Brands, Plc. with its registered office in U.K., H.M.M. became a part of Smithkline Beecham Consumer Brands. </li></ul><ul><li>1994- name changed to Smithkline Consumer Healthcare Ltd. </li></ul><ul><li>27 th December, 2000- Merger between Smithkline Beecham & Glaxo Welcome, new company Glaxo Smithkline (GSK) formed. </li></ul><ul><li>GSKCH’s journey in Indian market began with Horlicks. </li></ul>
  16. 16. Business Stations of GSKCH Ltd. <ul><li>Head Office - Gurgaon </li></ul><ul><li>Packing Stations : </li></ul><ul><ul><li>Mangaldoi, Gauhati (Assam) </li></ul></ul><ul><ul><li>Kompally </li></ul></ul><ul><ul><li>Baddi (Himachal Pradesh) </li></ul></ul><ul><li>Regional Sales Offices (RSO): </li></ul><ul><ul><li>Ghaziabad </li></ul></ul><ul><ul><li>Mumbai </li></ul></ul><ul><ul><li>Kolkata </li></ul></ul><ul><ul><li>Chennai </li></ul></ul><ul><li>Factories : </li></ul><ul><ul><li>Rajamundrey </li></ul></ul><ul><ul><li>Sonipat </li></ul></ul><ul><ul><li>Nabha </li></ul></ul>
  17. 17. Main Product of GSKCH Ltd. <ul><li>Horlicks </li></ul><ul><li>Mother Horlicks With Dha </li></ul><ul><li>Junior Horlicks With Dha </li></ul><ul><li>Boost </li></ul><ul><li>Biscuits </li></ul><ul><li>Eno </li></ul><ul><li>Gopika Ghee (By Product) </li></ul><ul><li>Foodles </li></ul><ul><li>Nutribar </li></ul>
  18. 18. About GSKCH Nabha Plant <ul><li>Biggest unit of all 3 manufacturing units. </li></ul><ul><li>Registered office of GSK Consumer Health Care. </li></ul><ul><li>Plant employs work force- 1500 to 2000, </li></ul><ul><li>1100- permanent. </li></ul><ul><li>Staff & management of 140 persons. </li></ul><ul><li>Wage agreement for 3 years. </li></ul><ul><li>Production Capacity- 99500 MT pa </li></ul>
  19. 19. Contd… <ul><li>Plant runs 24 x 6 with 3 shifts from: </li></ul><ul><ul><li>5.15 a.m. to 1.15 p.m. </li></ul></ul><ul><ul><li>1.15 p.m. to 9.15 p.m. </li></ul></ul><ul><ul><li>9.15 p.m. to 5.15 a.m. </li></ul></ul><ul><li>Office opens for 6 days in a week.  </li></ul><ul><li>7 Milk Collection Centers (MCC’s) around Nabha, to meet the requirement of 70 tones of Milk per day. </li></ul>
  20. 20. 5S at Nabha <ul><li>5S- tool that aims to create & maintain an organized, clean & high performance workplace: </li></ul><ul><ul><li>Sort </li></ul></ul><ul><ul><li>Store </li></ul></ul><ul><ul><li>Shine </li></ul></ul><ul><ul><li>Standardize </li></ul></ul><ul><ul><li>Sustain </li></ul></ul><ul><li>Efficiently utilized by Nabha Unit </li></ul><ul><li>Lead to reduction in records retrieval time drastically. </li></ul>
  21. 21. Supply Chain Process
  22. 22. Various Departments at GSKCH Ltd. <ul><li>Human Resources & Administration Department. </li></ul><ul><li>Manufacturing Department. </li></ul><ul><li>Milk Procurement Department. </li></ul><ul><li>Quality Assurance Department. </li></ul><ul><li>Engineering Department. </li></ul><ul><li>Finance Department. </li></ul>
  23. 23. Finance Department <ul><li>Vendor Payment </li></ul><ul><li>Disbursement of Salaries </li></ul><ul><li>Payment to Government Bodies  </li></ul><ul><li>Milk Accounting  </li></ul><ul><li>Treasury & Banking </li></ul><ul><li>Payment of Services </li></ul><ul><li>Capital Budgeting </li></ul>
  24. 24. SWOT Analysis of Nabha Plant <ul><li>Strengths </li></ul><ul><li>Own energy conversion projects. </li></ul><ul><li>Good brand image in market. </li></ul><ul><li>High production capacity.   </li></ul><ul><li>Weaknesses </li></ul><ul><li>Working capital not used properly. </li></ul><ul><li>Female staff not recruited. </li></ul>
  25. 25. Contd… <ul><li>Opportunities </li></ul><ul><li>Greater demand for processed food products due to: </li></ul><ul><ul><li>Rising household incomes </li></ul></ul><ul><ul><li>Increasing urbanization </li></ul></ul><ul><ul><li>Changing lifestyles </li></ul></ul><ul><ul><li>Growth in working women’s population </li></ul></ul><ul><li>  Threats </li></ul><ul><li>Limited use of technology in food processing </li></ul><ul><li>High taxes on branded agricultural products </li></ul>
  26. 26. <ul><li>TREND ANALYSIS </li></ul><ul><li>OF </li></ul><ul><li>GSKCH </li></ul>
  27. 29. Title of Project <ul><li>Comparative Financial Analysis </li></ul><ul><li>of </li></ul><ul><li>GlaxoSmithKline Consumer Healthcare Ltd. </li></ul><ul><li>with </li></ul><ul><li>selected Food Processing Companies </li></ul>
  28. 30. Objectives of the Study <ul><li>To analyze financial position of GlaxoSmithKline Consumer Healthcare Limited. </li></ul><ul><li>To compare financial position of GSK with selected companies of food processing sector. </li></ul>
  29. 31. Research Methodology <ul><li>Research Design : Descriptive Design </li></ul><ul><li>Universe : All Companies operating in India </li></ul><ul><li>Population : All Food Processing companies operating in India </li></ul><ul><li>Sample unit : One Food Processing company </li></ul><ul><li>Sample size : 5 Food Processing Companies: GlaxoSmithKline Consumer Healthcare Ltd, Marico India Ltd., Britannia Industries Ltd., Nestle India Ltd., Dabur India Ltd. </li></ul>
  30. 32. Research Methodology <ul><li>Sampling Technique : For study sampling technique, followed is judgemental sampling. </li></ul><ul><li>Data Collection : Secondary sources like internet, magazines </li></ul><ul><li>Tools Used in Research: </li></ul><ul><ul><li>Ratio analysis </li></ul></ul><ul><ul><li>Trend analysis </li></ul></ul><ul><ul><li>Common-size statements </li></ul></ul><ul><ul><li>Comparative statements </li></ul></ul>
  31. 33. Limitations of Study <ul><li>Some other ratios can also be calculated. </li></ul><ul><li>The research is only a mean but not an end. </li></ul><ul><li>There is limitation of time. </li></ul><ul><li>Study was limited to information provided by annual reports available on website. </li></ul>
  32. 34. FINANCIAL ANALYSIS & INTERPRETATION
  33. 35. Types of Financial Analysis Process of determining financial strengths & weaknesses of firm by establishing strategic relationship between the items of balance sheet, profit & loss account and other operative data
  34. 36. <ul><li>RATIO ANALYSIS </li></ul>
  35. 37. <ul><li>LIQUIDITY RATIOS </li></ul>
  36. 38. Current Ratio <ul><ul><li>Current Ratio = Current Assets </li></ul></ul><ul><li> Current Liabilities </li></ul>Table 4.1     GSK Nestle Dabur Marico Britannia Current assets 117290.83 8565592 95080.22 565.93 5393415 Current Liabilities 51108 .58 14223846 80764.87 484.46 4132898 Ratio 2.29:1 0.60:1 1.17:1 1.1:1 1.3:1
  37. 40. Quick Ratio <ul><ul><li>Quick Ratio = Quick Assets </li></ul></ul><ul><ul><li>Current Liabilities </li></ul></ul>Table 4.2   GSK Nestle Dabur Marico Britannia Quick assets 90687.63 3578213 57533.34 292.24 2857084 Current Liabilities (lacs) 51108.58 14223846 80764.87 484.46 4132898 Ratio 1.77:1 0.25:1 0.71:1 0.60:1 0.69:1
  38. 42. Absolute Liquid Ratio <ul><ul><li>Absolute Liquid Ratio = Absolute Liquid Assets </li></ul></ul><ul><ul><li> Current Liabilities </li></ul></ul>Table 4.3   GSK Nestle Dabur Marico Britannia Absolute Quick Assets 81979.89 1555863 14842.55 24.96 407978 Current Liabilities (lacs) 51108.58 14223846 80764.87 484.46 4132898 Ratio 1.60:1 0.10:1 0.18:1 0.05:1 0.09:1
  39. 44. <ul><li>ACTIVITY </li></ul><ul><li>OR </li></ul><ul><li>TURNOVER RATIOS </li></ul>
  40. 45. Inventory Turnover Ratio <ul><ul><li>Inventory Turnover ratio = Net Sales Average Inventory </li></ul></ul>Table 4.4   GSK Nestle Dabur Marico Britannia Net Sales (lacs) 192150.23 51293767 280543.11 1917.17 31122141 Opening Inventory (lacs) 27717.03 4349117 30248.42 218.59 3015309 Closing Inventory (lacs) 26603.2 4987379 37546.88 273.69 2536331 Average (lacs) 27160.115 4668248 33897.65 246.14 2775820 Ratio 7.07 10.98 8.27 7.78 11.21
  41. 46. Graph 4.4
  42. 47. Debtors Turnover Ratio <ul><ul><li>Debtors Turnover Ratio= Net Credit Annual Sales Average Debtors </li></ul></ul>Table 4.5   GSK Nestle Dabur Marico Britannia Net Sales (lacs) 192150.23 51293767 280543.11 1917.17 31122141 Opening Debtors (lacs) 4325.02 452933 17231.97 41.68 463255 Closing Debtors (lacs) 3135.64 641863 17788.42 61.05 496143 Average (lacs) 3730.33 547398 17510.195 51.365 479699 Ratio 51.51 93.70 16.02 37.32 64.87
  43. 48. Graph 4.5
  44. 49. Creditors Turnover Ratio Creditors Turnover Ratio = Net Credit Annual Purchases Average Creditors Table 4.6   GSK Nestle Dabur Marico Britannia Annual Purchase (lacs) 72781.68 24570317 137617.92 1157.03 19103947 Opening Creditors (lacs) 17245.92 5026075 24728.54 186.68 971097 Closing Creditors (lacs) 29063.87 5823233 13612 177.28 896175 Average (lacs) 23154.89 5424654 19170.27 181.98 933636 Ratio 3.14 4.52 7.17 6.35 20.46
  45. 50. Graph 4.6
  46. 51. Working Capital Turnover Ratio <ul><li>Working Capital Turnover Ratio = Net Sales </li></ul><ul><ul><li>Net Working Capital </li></ul></ul>Table 4.7   GSK Nestle Dabur Marico Britannia Net Sales (lacs) 192150.23 51293767 280543.11 1917.17 31122141 Net Working Capital (lacs) 66182.25 -5658254 14315.35 81.47 1260517 Ratio 2.90 -9.06 19.59 23.53 24.68
  47. 52. Graph 4.7
  48. 53. <ul><li>PROFITABILITY RATIOS </li></ul>
  49. 54. Net Profit Ratio <ul><ul><li>Net Profit Ratio = Net Profit *100 </li></ul></ul><ul><li>Net Annual Sales </li></ul>Table 4.8   GSK Nestle Dabur Marico Britannia Net Profit (lacs) 23278.28 6550028 39121.21 142.1 1804001 Net Sales (lacs) 192150.23 51293767 280543.11 1917.17 31122141 Ratio 12.11 12.76 13.94 7.41 5.79
  50. 55. Graph 4.8
  51. 56. Return on Shareholder Fund Return on Shareholder fund = Net Profit (after interest & tax) Shareholder’s fund Table 4.9   GSK Nestle Dabur Marico Britannia Net Profit (after interest & tax) 23539.65 6550028 39121.21 142.10 1804001 Shareholders Fund 90509.61 5812650 82338.46 367.68 8245412 Ratio 26.01 112.69 47.51 38.65 21.88
  52. 57. Graph 4.9
  53. 58. Turnover Ratio <ul><ul><li>Turnover Ratio = Net Sales </li></ul></ul><ul><li>Total Current Assets </li></ul>Table 4.10   GSK Nestle Dabur Marico Britannia Net Sales 192150.23 51293767 280543.11 1917.17 31122141 Total Current Assets 117290.83 8565592 95080.22 565.93 5393415 Ratio 61.04 16.70 33.89 29.52 17.33
  54. 59. Graph 4.10
  55. 60. Earnings Per Share <ul><ul><li>Earnings per share = Net Profit (after interest, tax & div) No of Equity Shares </li></ul></ul>Table 4.11 GSK Nestle Dabur Marico Britannia Net Profit (lacs) 23539.65 6550028 39121.21 142.10 1804001 No of equity shares (lacs) 420.56 96415.72 8650.76 60.90 23890.36 Earning Per Share Ratio 55.97 67.94 4.52 2.33 75.51
  56. 61. Graph 4.11
  57. 62. <ul><li>SOLVENCY RATIOS </li></ul>
  58. 63. Debt Equity Ratio <ul><ul><li>Debt Equity Ratio = Outsiders Fund </li></ul></ul><ul><ul><li>Shareholders Fund </li></ul></ul>Table 4.12   GSK Nestle Dabur Marico Britannia Outsiders Fund 51108.58 14223846 103523.91 535.76 4384521 Shareholders Fund 90509.61 5812650 82338.46 367.68 8245412 Ratio 0.56 2.45 1.26 1.46 0.53
  59. 64. Graph 4.12
  60. 65. Solvency Ratio <ul><ul><li>Solvency Ratio = Total Liabilities to Outsiders </li></ul></ul><ul><ul><li> Total Assets </li></ul></ul>Table 4.13   GSK Nestle Dabur Marico Britannia Total Liability to outsider (lacs) 51108.58 14223846 103523.91 535.76 4384521 Total Assets (lacs) 141618.19 20356468 188910.87 903.44 12729354 Ratio 36.08 69.87 54.80 59.30 34.44
  61. 66. Graph 4.13
  62. 67. Proprietary Ratio <ul><li>Proprietary Ratio = Shareholders fund </li></ul><ul><ul><li> Total Assets </li></ul></ul>Table 4.14   GSK Nestle Dabur Marico Britannia Shareholders Fund 90509.61 5812650 82338.46 367.68 8245412 Total Assets 141618.19 20356468 188910.87 903.44 12729354 Ratio 63.91 28.55 43.59 40.70 64.77
  63. 68. Graph 4.14
  64. 69. Fixed Assets to Shareholder funds Ratio Fixed Assets to = Fixed Assets (after Dep.) Shareholder funds Ratio Shareholder funds Table 4.15   GSK Nestle Dabur Marico Britannia Fixed Asset (after depreciation) 23226.15 9758321 36003.11 161.52 2838596 Shareholder Funds 90509.61 5812650 82338.46 367.68 8245412 Ratio 0.26 1.68 0.44 0.44 0.34
  65. 70. Graph 4.15
  66. 71. <ul><li>TREND ANALYSIS </li></ul>
  67. 72. Trend of Net Sales of GSK Table 4.16 2005 2006 2007 2008 2009 Net Sales (Lacs) 96684 110787 127847 154175 192150 Trend of Net Sales (%) 100.00 114.59 115.40 120.59 124.63
  68. 73. Trend of Net Sales of Dabur Table 4.17 2005 2006 2007 2008 2009 Net Sales (Lacs) 122623 134279 160043 208340 239616 Trend of Net Sales (%) 100.00 109.51 119.19 130.18 115.01
  69. 74. Trend of Net Sales of Britannia Table 4.18 2005 2006 2007 2008 2009 Net Sales (Lacs) 161540 181790 219930 258410 311220 Trend of Net Sales (%) 100.00 112.54 120.98 117.50 120.44
  70. 75. Trend of Net Sales of Marico Table 4.19 2005 2006 2007 2008 2009 Net Sales (Lacs) 93832 109877 136011 156474 191717 Trend of Net Sales (%) 100.00 117.10 123.78 115.05 122.52
  71. 76. Trend of Net Sales of Nestle Table 4.20 2005 2006 2007 2008 2009 Net Sales (Lacs) 247690 281606 350435 432424 512938 Trend of Net Sales (%) 100.00 113.69 124.44 123.40 118.62
  72. 77. Comparison: Net Sales Growth (%) YOY Table 4.21 2006 2007 2008 2009 GSK 14.59 0.81 5.20 4.04 Dabur 9.51 9.68 10.99 -15.16 Britannia 12.54 8.44 -3.48 2.94 Marico 17.10 6.69 -8.74 7.48 Nestle 13.69 10.75 -1.05 -4.78
  73. 78. Graph 4.21
  74. 79. Trend of Net Profit of GSK Table 4.22 2005 2006 2007 2008 2009 Net Profit (Lacs) 10715 12693 16268 18833 23278 Trend of Net Profit (%) 100.00 118.46 128.17 115.77 123.60
  75. 80. Trend of Net Profit of Dabur Table 4.23 2005 2006 2007 2008 2009 Net Profit (Lacs) 15600 21400 28200 33300 39100 Trend of Net Profit (%) 100.00 137.18 131.78 118.09 117.42
  76. 81. Trend of Net Profit of Britannia Table 4.24 2005 2006 2007 2008 2009 Net Profit (Lacs) 14870 14640 10760 19100 18040 Trend of Net Profit (%) 100.00 98.45 73.50 177.51 94.45
  77. 82. Trend of Net Profit of Marico Table:4.25 2005 2006 2007 2008 2009 Net Profit (Lacs) 7010 8690 11290 16910 18870 Trend of Net Profit (%) 100.00 123.97 129.92 149.78 111.59
  78. 83. Trend of Net Profit of Nestle Table 4.26 2005 2006 2007 2008 2009 Net Profit (Lacs) 30957 31510 41381 53408 65500 Trend of Net Profit (%) 100.00 101.79 131.33 129.06 122.64
  79. 84. COMPARISON: Net Profit Growth (%) YOY Table 4.27 2006 2007 2008 2009 GSK 18.46 9.71 -12.40 7.84 Dabur 37.18 -5.40 -13.69 -0.67 Britannia -1.55 -24.96 104.01 -83.06 Marico 23.97 5.95 19.86 -38.19 Nestle 1.79 29.54 -2.26 -6.42
  80. 85. Graph 4.27
  81. 86. Trend of Earning Per Share of GSK Table 4.28 2005 2006 2007 2008 2009 Earning Per Share (Lacs) 24.84 30.18 38.68 44.78 55.35 Trend of Earning Per Share (%) 100.00 121.50 128.16 115.77 123.60
  82. 87. Trend of Earning Per Share of Dabur Table 4.29 2005 2006 2007 2008 2009 Earning Per Share (Lacs) 2.57 3.20 3.30 3.90 4.50 Trend of Earning Per Share (%) 100.00 124.51 103.13 118.18 115.38
  83. 88. Trend of Earning Per Share of Britannia Table 4.30 2005 2006 2007 2008 2009 Earning Per Share (Lacs) 60.59 59.96 45.06 79.95 75.51 Trend of Earning Per Share (%) 100.00 98.96 75.15 177.43 94.45
  84. 89. Trend of Earning Per Share of Marico Table 4.31 2005 2006 2007 2008 2009 Earning Per Share (Lacs) 1.20 1.50 1.90 2.80 3.10 Trend of Earning Per Share (%) 100.00 125.00 126.67 147.37 110.71
  85. 90. Trend of Earning Per Share of Nestle Table 4.32 2005 2006 2007 2008 2009 Earning Per Share (Lacs) 32.11 32.68 42.92 55.39 67.94 Trend of Earning Per Share (%) 100.00 101.78 131.33 129.05 122.66
  86. 91. Comparison: Earning Per Share Growth (%) YOY Table 4.33 2006 2007 2008 2009 GSK 21.50 6.67 -12.39 7.83 Dabur 24.51 -21.39 15.06 -2.80 Britannia -1.04 -23.81 102.28 -82.98 Marico 25.00 1.67 20.70 -36.65 Nestle 1.78 29.56 -2.28 -6.40
  87. 92. Graph 4.33
  88. 93. <ul><li>COMMON SIZE STATEMENTS </li></ul>
  89. 94. Common Size Statement of GSK Table 4.34 2009 Percentage (%) Currents Assets & loans   Inventories 26603.2 18.79 Sundry Debtors 3135.64 2.21 cash & bank balance 81979.89 57.89 Other current assets 2196.82 1.55 Loans & advances 3375.28 2.38 Total CA (A) 117290.83 82.82 Fixed Assets (B) 23226.15 16.40 Investments ( C ) 0.05 0.00 Deferred Tax Asset (D) 1101.16 0.78 Total Assets (A+B+C+D) 141618.19
  90. 95. Contd... Current Liabilities & provisions   Current liabilities 38095.94 26.90 Provisions 13012.64 9.19 Total Current Liabilities (E) 51108.58 36.09 Shareholders funds   Share Capital (F) 4205.55 2.97 Reserves & Surplus (G) 86304.06 60.94 Deferred tax liability (H) 0 0.00 Total liabilities (E+F+G+H) 141618.19
  91. 96. Common Size Statement of Dabur 2009 Percentage (%) Currents Assets & loans Inventories 37546.88 19.88 Sundry Debtors 17788.42 9.42 cash & bank balance 14842.55 7.86 Loans & advances 24902.37 13.18 Total CA (A) 95080.22 50.33 Fixed Assets (B) 55916.96 29.60 Investments ( C ) 34696.52 18.37 Deferred Tax Asset (D) 2353.09 1.25 Miscellaneous expenditure (E) 864.08 0.46 Total Assets (A+B+C+D+E) 188910.87
  92. 97. Contd . Current Liabilities & provisions 2009 Percentage (%) Liabilities 48165.32 25.50 Provisions 32599.55 17.26 Total Current Liabilities (F) 80764.87 42.75 Shareholders funds Share Capital (G) 8650.76 4.58 Reserves & Surplus (H) 73687.7 39.01 Loan Funds secured (I) 9565.15 5.06 unsecured (J) 13193.89 6.98 Deferred tax liability (K) 3048.5 1.61 Total liabilities (F+G+H+I+J+K) 188910.87
  93. 98. Common Size Statement of Britannia   2009 Percentage (%) Currents Assets & loans Inventories 25363.31 19.93 Sundry Debtors 4961.43 3.90 Cash & bank balance 4079.78 3.21 Other current assets 1370.85 1.08 Loans & advances 18158.78 14.27 Total CA (A) 53934.15 42.37 Fixed Assets (B) 28385.96 22.30 Investments ( C ) 42309.69 33.24 Miscellaneous expenditure (D) 2663.74 2.09 Deferred tax asset (E) 0 0.00 Total Assets (A+B+C+D+E) 127293.54
  94. 99. Contd… Current Liabilities & provisions 2009 Percentage (%) Liabilities 26580.62 20.88 Provisions 14748.36 11.59 Total Current Liabilities (F) 41328.98 32.47 Shareholders funds Share Capital (G) 2389.02 1.88 Reserves & Surplus (H) 80065.1 62.90 Loan Funds Secured (I) 219.72 0.17 Unsecured (J) 2296.51 1.80 Deferred tax liability (K) 994.21 0.78 Total liabilities (F+G+H+I+J+K) 127293.54
  95. 100. Common Size Statement of Marico Table 4.37 2009 Percentage (%) Currents Assets & loans Inventories 33904 29.63 Sundry Debtors 11080 9.68 Cash & bank balance 9219 8.06 Loans & advances 12985 11.35 Total Current Assets (A) 67188 58.72 Fixed Assets (B) 31110 27.19 Investments ( C ) 1211 1.06 Goodwill on consolidation(D) 8503 7.43 Deferred tax asset(E) 6412 5.60 Total Assets (A+B+C+D+E) 114424
  96. 101. Contd... Current Liabilities & provisions 2009 Percentage (%) Liabilities 28027 24.49 Provisions 3551 3.10 Total Current Liabilities (F) 31578 27.60 Shareholders funds Share Capital (G) 6090 5.32 Reserves & Surplus (H) 39259 34.31 Minority interest(I) 0 Loan Funds Secured (J) 10751 9.40 Unsecured (K) 26746 23.37 Total Liabilities (F+G+H+I+J+K) 114424
  97. 102. Common Size Statement of Nestle Table 4.38 2009 Percentage (%) Currents Assets & loans Inventories 49873.8 24.50 Sundry Debtors 6418.63 3.15 cash & bank balance 15558.6 7.64 Loans & advances 13804.9 6.78 Total Current Assets (A) 85655.9 42.08 Fixed Assets (B) 97583.2 47.94 Investments ( C ) 20325.6 9.98 Total Assets (A+B+C) 203565
  98. 103. Contd... Current Liabilities & provisions Current liabilities 58759.1 28.87 Provisions 83479.4 41.01 Total Current Liabilities (D) 142238 69.87 Shareholders funds Share Capital (E) 9641.57 4.74 Reserves & Surplus (F) 48484.9 23.82 Deferred tax liability/(assets) net (G) 3199.72 1.57 Total liabilities (D+E+F+G) 203565
  99. 104. <ul><li>COMPARATIVE STATEMENT </li></ul>
  100. 105. Comparative Balance Sheet of GSK Table 4.39 2008 2009 Absolute Change Percentage (%) Currents Assets & loans Inventories 27717.03 26603.2 (1113.83) (4.02) Sundry Debtors 4325.02 3135.64 (1189.38) (27.50) cash & bank balance 47097.69 81979.89 34882.20 74.06 Other current assets 2883.54 2196.82 (686.72) (23.82) Loans & advances 3313.34 3375.28 61.94 1.87 Total CA (A) 85336.62 117290.8 31954.21 37.44 Fixed Assets (B) 22610.83 23226.15 615.32 2.72 Investments ( C ) 0.05 0.05 0.00 Deferred Tax Asset (D) 0 1101.16 1101.16 Total Assets (A+B+C+D) 107947.5 141618.2 33670.69 31.19
  101. 106. Contd... Current Liabilities & provisions 2008 2009 Absolute Change Percentage (%) Current liabilities 25023.53 38095.94 13072.41 52.24 Provisions 6177.67 13012.64 6834.97 110.64 Total Current Liabilities (E) 31201.2 51108.58 19907.38 63.80 Shareholders funds Share Capital (F) 4205.55 4205.55 0.00 0.00 Reserves & Surplus (G) 71882.3 86304.06 14421.76 20.06 Deferred tax liability (H) 658.45 0 (658.45) (100.00) Total liabilities (E+F+G+H) 107947.5 141618.2 33670.69 31.19
  102. 107. Comparative Balance Sheet of Dabur Table 4.40: 2008 2009 Absolute Change Percentage (%) Currents Assets & loans Inventories 30248.42 37546.88 7298.46 24.13 Sundry Debtors 17231.97 17788.42 556.45 3.23 Cash & bank balance 7656.81 14842.55 7185.74 93.85 Loans & advances 22253.15 24902.37 2649.22 11.90 Total CA (A) 77390.35 95080.22 17689.87 22.86 Fixed Assets (B) 46525.63 55916.96 9391.33 20.19 Investments ( C ) 20371.63 34696.52 14324.89 70.32 Deferred Tax Asset (D) 2400.73 2353.09 (47.64) (1.98) Miscellaneous expenditure (E) 1395.27 864.08 (531.19) (38.07) Total Assets (A+B+C+D+E) 148083.61 188910.87 40827.26 27.57
  103. 108. Contd... Current Liabilities & provisions Liabilities 45796.70 48165.32 2368.62 5.17 Provisions 27409.97 32599.55 5189.58 18.93 Total Current Liabilities (F) 73206.67 80764.87 7558.20 10.32 Shareholders funds Share Capital (G) 8640.23 8650.76 10.53 0.12 Reserves & Surplus (H) 53592.55 73687.7 20095.15 37.50 Loan Funds Secured (I) 9756.15 9565.15 (191.00) (1.96) Unsecured (J) 160.05 13193.89 13033.84 8143.61 Deferred tax liability (K) 2727.96 3048.5 320.54 11.75 Total liabilities (F+G+H+I+J+K) 148083.61 188910.87 40827.26 27.57
  104. 109. Comparative Balance Sheet of Britannia Table 4.41 2008 2009 Absolute Change Percent age (%) Currents Assets & loans Inventories 30153.09 25363.31 (4789.78) (15.88) Sundry Debtors 4632.55 4961.43 328.88 7.10 Cash & bank balance 4376.64 4079.78 (296.86) (6.78) Other current assets 1319.3 1370.85 Loans & advances 14764.9 18158.78 3393.88 22.99 Total CA (A) 55246.48 53934.15 (1312.33) (2.38) Fixed Assets (B) 25068.07 28385.96 3317.89 13.24 Investments ( C ) 38083 42309.69 4226.69 11.10 Miscellaneous expenditure (D) 2322.58 2663.74 Deferred tax asset (E) 237.59 0 (237.59) (100.00) Total Assets (A+B+C+D+E) 120957.7 127293.5 6335.82 5.24
  105. 110. Contd… Current Liabilities & provisions Liabilities 24701.77 26580.62 1878.85 7.61 Provisions 10065.17 14748.36 4683.19 46.53 Total Current Liabilities (F) 34766.94 41328.98 6562.04 18.87 Shareholders funds Share Capital (G) 2389.02 2389.02 0.00 0.00 Reserves & Surplus (H) 73192.01 80065.1 6873.09 9.39 Loan Funds Secured (I) 193.72 219.72 26.00 13.42 Unsecured (J) 10416.03 2296.51 (8119.52) (77.95) Deferred tax liability (K) 0 994.21 Total liabilities (F+G+H+I+J+K) 120957.7 127293.5 6335.82 5.24
  106. 111. Comparative Balance Sheet of Marico Table 4.42 2008 2009 Absolute Change Percentage (%) Currents Assets & loans Inventories 26046 33904 7858.00 30.17 Sundry Debtors 8627 11080 2453.00 28.43 Cash & bank balance 7528 9219 1691.00 22.46 Loans & advances 10609 12985 2376.00 22.40 Total CA (A) 52810 67188 14378.00 27.23 Fixed Assets (B) 25731 31110 5379.00 20.90 Investments ( C ) 1 1211 1210.00 121000.00 Goodwill on consolidation (D) 8424 8503 79.00 0.94 Deferred tax asset (E) 9817 6412 (3405.00) (34.68) Total Assets (A+B+C+D+E) 96783 114424 17641.00 18.23
  107. 112. Contd… Current Liabilities & provisions Liabilities 25596.00 28027 2431.00 9.50 Provisions 3919 3551 (368.00) (9.39) Total Current Liabilities (F) 29515 31578 2063.00 6.99 Shareholders funds Share Capital (G) 6090 6090 0.00 0.00 Reserves & Surplus (H) 25372 39259 13887.00 54.73 Minority interest (I) 12 0 (12.00) (100.00) Loan Funds Secured (J) 13454 10751 (2703.00) (20.09) Unsecured (K) 22340 26746 4406.00 19.72 Total liabilities (F+G+H+I+J+K) 96783 114424 17641.00 18.23
  108. 113. Comparative Balance Sheet of Nestle Table 4.43 2008 2009 Absolute Change Percentage (%) Currents Assets & loans Inventories 43491.17 49873.79 6382.62 14.68 Sundry Debtors 4559.33 6418.63 1859.30 40.78 cash & bank balance 19368.93 15558.63 (3810.30) (19.67) Loans & advances 12375.89 13804.87 1428.98 11.55 Total CA (A) 79795.32 85655.92 5860.60 7.34 Fixed Assets (B) 86216.11 97583.21 11367.10 13.18 Investments ( C ) 3489.92 20325.55 16835.63 482.41 Total Assets (A+B+C) 169501.4 203564.7 34063.33 20.10
  109. 114. Contd... Current Liabilities & provisions Current liabilities 50746.71 58759.06 8012.35 15.79 Provisions 67731.57 83479.4 15747.83 23.25 Total Current Liabilities (D) 118478.3 142238.5 23760.18 20.05 Shareholders funds Share Capital (E) 9641.57 9641.57 0.00 0.00 Reserves & Surplus (F) 37693.4 48484.93 10791.53 28.63 Deferred tax liability/(assets) net (G) 3688.1 3199.72 (488.38) (13.24) Total liabilities (D+E+F+G) 169501.4 203564.7 34063.33 20.10
  110. 115. Findings <ul><li>Working in same sector, all companies have different assets allocation i.e. Some having more investment in current assets & some have more investments in long term assets. </li></ul><ul><li>Net sales for GSK has increasing trend as compared to other 4 companies showing more fluctuations. </li></ul><ul><li>Net Profit & Earning per Share on fluctuation side for each company due to difference in incurring of expenses. </li></ul>
  111. 116. Contd… <ul><li>All companies except GSK have long term debts due to which GSK has less fluctuation in Net Profit & Earning per Share because of interest obligation on part of company. </li></ul><ul><li>Investments for long term less for GSK that shows it has less investment as compared to other companies but has large amount of fixed assets. </li></ul>
  112. 117. Suggestions <ul><li>GSK should make investment in long term funds as it will help in capital appreciation of company. </li></ul><ul><li>Company should raise funds through long term debts as it will provide interest tax shield to company. </li></ul><ul><li>GSK should reduce investment in current assets as it is too high for company. </li></ul>
  113. 118. <ul><li>THANK YOU </li></ul>

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