This document provides an analysis of Indian Tobacco Company (ITC) over several years. It includes an introduction to ITC, the company's history established in 1910, vision, mission and product lines. Financial information is presented including balance sheets from 2009-2013, analysis of key ratios like current ratio, inventory turnover, and earnings per share. The document concludes that ITC promotes its brands through advertising and focuses on retailing and wholesaling, applying new concepts to overcome weaknesses in personal care markets.

1. Assignment no-1
ON
ITC (Indian Tobacco Company)
DESH BHGAT UNIVERSITY
Submitted By:- Submitted To:-
Manpreet kaur syan Mrs.Pooja
Sharma
Roll No- 17

2. CONTENTS
 Introduction of the company
 History of the company
 Vision and Mission
 Products list of the company
 New of the company
 Balance sheet (9,10,11)
 Ratio And Interpretation (12- 22)
 Advantages
 Conclusion

4. INTRODUCTION
 Indian Tobacco Company Limited
( ITC)
 Company – Public
 Headquarter - Kolkata ,west
Bengal , India
Chairman – Y. C .Deveshwar
(yogrsh chander deveshwar)

5. HISTORY
 Established -1910
 Name of the company - Imperial
Tobacco Company of India Limited
 Change of name - 1970 Indian
Tobacco Company Limited and in
1974 I.T.C. Limited .
 Hotels business – 1975
 Paperboards business - 1979
 Stationery products - 2000

6. Vision and mission
The ITC Vision
 Sustain ITC’s position as one of India’s most
valuable corporations through world class
performance, creating growing value for the
Indian economy and the Company’s
stakeholders.
The ITC Mission
 To enhance the wealth generating
capability of the enterprise in a globalizing
environment, delivering superior and
sustainable stakeholder value.

7. PRODUCTS
Tobacco products
Stationery products
Personal care
Safety matches
Paperboard
Information technology
Printing and packaging

8. ITC slips 2%, govt. may impose tighter
norms on smoking
 Shares of ITC fell 2 percent intraday Wednesday on
government’s tighter norms to put a check on smoking.
According to a media report, the government may also
ban sale of loose cigarettes. The report states that an
expert panel headed by Delhi government’s former
principal secretary Ramesh Chandra has submitted its
observations to the health ministry.

9. Balance sheet

10. BALANCESHEET OF ITC
COMPANY
PARTICULARS In .Rs.cr.
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Sources Of Funds
Total Share Capital 790.18 781.84 773.81 381.82 377.44
Equity Share Capital 790.18 781.84 773.81 381.82 377.44
Share Application Money 0 0 0 0 0
Preference Share Capital 0 0 0 0 0
Init. Contribution Settler 0 0 0 0 0
Preference Share Application Money 0 0 0 0 0
Employee Stock Opiton 0 0 0 0 0
Reserves 22,367.72 18,676.74 15,716.09 13,999.37 13,569.61
Revaluation Reserves 0 0 0 59.22 60
Networth 23,157.90 19,458.58 16,489.90 14,440.41 14,007.05
Secured Loans 0 1.89 25.06 0.95 18.85
Unsecured Loans 90.8 105.38 88.69 109.82 167.81
Total Debt 90.8 107.27 113.75 110.77 186.66
Minority Interest 179.89 157.09 140.82 126.38 129.96
Policy Holders Funds 0 0 0 0 0
Group Share in Joint Venture 0 0 0 27.7 35.52
Total Liabilities 23,428.59 19,722.94 16,744.47 14,705.26 14,359.19

11. Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
12 mths 12 mths 12 mths 12 mths 12 mths
Application Of Funds
Gross Block 18,055.17 15,243.34 13,798.71 12,974.91 11,513.40
Less: Accum. Depreciation 5,909.67 5,230.25 4,621.32 4,218.72 3,667.97
Net Block 12,145.50 10,013.09 9,177.39 8,756.19 7,845.43
Capital Work in Progress 2,056.36 2,390.79 1,362.28 1,023.58 1,243.12
Investments 5,981.28 5,206.83 4,867.80 4,996.51 2,507.07
Inventories 7,522.09 6,426.87 5,734.80 5,079.98 4,782.58
Sundry Debtors 1,395.76 1,200.20 1,086.68 1,007.44 798.18
Cash and Bank Balance 3,828.30 3,130.12 2,426.87 265.48 288.31
Total Current Assets 12,746.15 10,757.19 9,248.35 6,352.90 5,869.07
Loans and Advances 2,424.09 1,733.67 1,748.75 1,548.07 1,591.35
Fixed Deposits 0 0 0 1,082.03 1,028.79
Total CA, Loans & Advances 15,170.24 12,490.86 10,997.10 8,983.00 8,489.21
Deffered Credit 0 0 0 0 0
Current Liabilities 6,585.65 5,899.90 5,497.45 4,508.18 4,061.18
Provisions 5,339.14 4,478.73 4,162.65 4,586.48 1,724.92
Total CL & Provisions 11,924.79 10,378.63 9,660.10 9,094.66 5,786.10
Net Current Assets 3,245.45 2,112.23 1,337.00 -111.66 2,703.11
Minority Interest 0 0 0 0 0
Group Share in Joint Venture 0 0 0 40.43 60.14
Miscellaneous Expenses 0 0 0 0.21 0.32
Total Assets 23,428.59 19,722.94 16,744.47 14,705.26 14,359.19

12. Ratio Mar
current
ratio
13
Mar
12
Mar
11
Mar
10
Mar
9 Interpretation
1.06 1.20 1.14 0.99 1.45 Current ratio is
unsatisfied because
current ratio's rule of
thumb is 2:1
Current ratio
Current ratio = current assets
/current liabilities

13. Ratio Mar
13
Mar 12 Mar
11
Mar
10
Mar 9
Interpretation
quick ratio 0.43 0.41 0.36 0.13 0.18 Quick ratio is also
unsatisfied because it's
rule of thumb is 1:1
Quick ratio
Quick ratio = quick assets /current liabilities

14. Inventory turnover ratio
Ratio Mar
Inventory
turnover
ratio
13
Mar
12
Mar
11
Mar
10
Mar
9 Interpretation
3.9 3.9 3.6 3.65 3.13 Inventory turnover ratio
equally increase in
2011-10 =3.6 and also
in 13-12 =3.9
Inventory turnover ratio =net sales /average
inventory

15. Fixed asset turnover
Fixed asset
turnover ratio
1.48 0.38 1.3 1.2 1.29 Increase in F.A.T.R but in
2012 their F.A.T.R is
decrease as compare to
rest 4 years
ratio
Fixed asset turnover ratio= net sales/
fixed assets

16. Fixed asset net worth ratio
Ratio Mar
fixed asset
net worth
ratio
13
Mar
12
Mar
11
Mar
10
Mar
9 Interpretation
0.83 3.3 0.93 1.02 0.83 To purchase fixed assets
company depends less on
shareholder fund .
Fixed asset net worth ratio =fixed asset
/net worth

17. working capital turnover ratio
Ratio Mar
working
capital
turnover ratio
13
Mar
12
36.4 66.2
7
Mar
11
Mar
10
0.51 -
6.77
Mar
9 Interpretation
180 W.C.T.R is increase in
2013-12 which show
efficient utilization of W.C
Working capital turnover ratio=cost of goods
sold/working capital

18. Reserves to equity share
Ratio Mar
Reserves to
equity share
capital ratio
13
Mar
12
Mar
11
Mar
10
Mar
9 Interpretation
283 238 203 360 359 Decrease in reserve to
equity ratio as compare
to last year ,which show
payment of dividend .
capital ratio
Reserve to equity share capital
ratio=reserve / equity share capital*100

19. Selling and administrative exp.
Ratio Mar
Selling and
adminis. Exp.
13
Mar
12
Mar
11
Mar
10
Mar 9
Interpretation
0 100 110 112 112 Lower the ratio ,greater
the profit
Selling and admin. Exp. =
selling and admin . Exp/net
sale * 100

20. Manufacturing exp.
Ratio Mar
Manufacturin
g exp.
13
Mar
12
Mar
11
Mar
10
Mar
9 Interpretation
0 250 260 222 260 Manufacturing exp. Ratio
is low that's profitability of
the company is higher
Manufacturing exp.= manufacturing exp./Net sales*
100

21. Current asset to proprietary fund ratio
Ratio Mar
Ratio of C.A
to
proprietary
Fund
13
55.0
4
Mar
12
Mar
11
55.2 56.0
8
Mar
10
Mar
9 Interpretation
44.2 42.8 Increase in C.A to
proprietary fund ratio
year to year
C. A to proprietary fund ratio= current
assets/proprietary fund

22. Ratio Mar
EPS(
Earning per
share)
13
Mar
12
9.39 7.8
8
Mar
11
Mar
10
6.45 10.6
4
Mar
9 Interpretation
8.65 EPS is high in 2010 all
the rest 4 years but in
2013 it increase 9.30.
EPS
EPS= Net profit after tax – pref.
dividend/No . of equity shares

23. Advantages of product
 Quality product .
 Branded products at reasonable price.
 Market leader in India.
 Innovation
 Regular introduction of new products .

24. Conclusion
 Promoting their brands through advertisement.
 Focuses on retailing and wholesaler.
 ITC knows their strength and weakness in the
personal care market, so they are applying new
concept to overcome their weaknesses….