23 - Ramneek - Nestle

8/8/2019 23 - Ramneek - Nestle

1/16

Nestle India s

Balance Sheet

Dec '04 Dec '05 Dec '06 Dec '07

12 mths 12 mths 12 mths 12 mths

Sources Of Funds

Total Share Capital 96.42 96.42 96.42 96.42

Equity Share Capital 96.42 96.42 96.42 96.42

Share Application Money 0 0 0 0

Preference Share Capital 0 0 0 0

Reserves 222.99 257.72 292.47 322.01

Revaluation Reserves 0 0 0 0

Networth 319.41 354.14 388.89 418.43Secured Loans 7.91 14.3 16.27

Unsecured Loans 0 0 0 0

Total Debt 7.91 14.3 16.27 2.87

Total Liabilities 327.32 368.44 405.16 421.3

Dec '04 Dec '05 Dec '06 Dec '07

12 mths 12 mths 12 mths 12 mths

Application Of Funds

Gross Block 838.16 942.4 1,058.27 1,179.77

Less: Accum. Depreciation 440.94 468.63 516.48 577.96

Net Block 397.22 473.77 541.79 601.81

Capital Work in Progress 34.09 22.83 38.24 73.7

Investments 154.86 104.43 77.77 94.4

Inventories 216.67 253.1 276.22 401.22

Sundry Debtors 26.17 30.52 55.76 53.49

Cash and Bank Balance 9.45 3.64 6.53 15.75

Total Current Assets 252.29 287.26 338.51 470.46

Loans and Advances 168.91 194.33 175.12 186.23

Fixed Deposits 0 33 69.82 22.01

Total CA, Loans & Advances 421.2 514.59 583.45 678.7

Deffered Credit 0 0 0 0

Current Liabilities 331.18 381.68 440.82 529.51

Provisions 348.87 365.5 395.28 497.79

Total CL & Provisions 680.05 747.18 836.1 1,027.30

Net Current Assets -258.85 -232.59 -252.65 -348.6

Miscellaneous Expenses 0 0 0 0

Total Assets 327.32 368.44 405.15 421.31

------------------- in Rs.

Cr.----------------

---


2/16

Contingent Liabilities 10.39 50.04 35.93 63.27

Book Value (Rs) 33.13 36.73 40.33 43.4


3/16

Dec '08

12 mths

96.42

96.42

0

0

376.93

0

473.350.82

0

0.82

474.17

Dec '08

12 mths

1,404.85

651.85

753

109.17

34.9

434.91

45.59

12.66

493.16

162.67

181.03

836.86

0

582.44

677.32

1,259.76

-422.9

0

474.17


4/16

84.9

49.09


5/16

Profit & Loss account

Dec '04 Dec '05 Dec '06

12 mths 12 mths 12 mths

Income

Sales Turnover 2,373.17 2,643.96 2,944.20

Excise Duty 143.75 168.87 125.04

Net Sales 2,229.42 2,475.09 2,819.16

Other Income 8.21 23.67 15.33

Stock Adjustments 6.55 16.73 13.42

Total Income 2,244.18 2,515.49 2,847.91

Expenditure

Raw Materials 1,047.99 1,135.80 1,348.21

Power & Fuel Cost 85.07 103.91 115.56

Employee Cost 164.25 183.29 216.16

Other Manufacturing Expenses 41.08 49.06 52.65

Selling and Admin Expenses 423.06 460.53 480.14

Miscellaneous Expenses 42.76 56.78 87.55

Preoperative Exp Capitalised 0 0 0

Total Expenses 1,804.21 1,989.37 2,300.27

Dec '04 Dec '05 Dec '06


Operating Profit 431.76 502.45 532.31

PBDIT 439.97 526.12 547.64

Interest 0.78 0.21 0.44

PBDT 439.19 525.91 547.2

Depreciation 49.14 56.84 66.28

Other Written Off 0 0 0

Profit Before Tax 390.05 469.07 480.92

Extra-ordinary items 0 0 0

PBT (Post Extra-ord Items) 390.05 469.07 480.92

Tax 134.58 159.49 165.43

Reported Net Profit 251.92 309.57 315.1

Total Value Addition 756.21 853.58 952.06

Preference Dividend 0 0 0

Equity Dividend 236.22 241.04 245.86

Corporate Dividend Tax 31.29 33.81 34.48

Per share data (annualised)

Shares in issue (lakhs) 964.16 964.16 964.16

Earning Per Share (Rs) 26.13 32.11 32.68

------------------- in Rs. Cr.-----------------

--


6/16

Equity Dividend (%) 245 250 255

Book Value (Rs) 33.13 36.73 40.33


7/16

Dec '07 Dec '08

12 mths 12 mths

3,647.49 4,472.04

146.53 143.39

3,500.96 4,328.65

21.24 29.88

71.01 31.11

3,593.21 4,389.64

1,763.54 2,153.85

123.94 159.76

269.44 314.58

62.14 73.46

496.22 736.73

172.54 81.4

0 0

2,887.82 3,519.78

Dec '07 Dec '08

12 mths 12 mths

684.15 839.98

705.39 869.86

0.85 1.64

704.54 868.22

74.74 92.36

0 0

629.8 775.86

0 0

629.8 775.86

214.8 238.74

413.81 534.08

1,124.29 1,365.92

0 0

318.17 409.77

52.21 69.64

964.16 964.16

42.92 55.39


8/16

330 425

43.4 49.09


9/16

Dec '04 Dec '05

12 mths 12 mths

Profitability Ratios Dec '04 Dec '05

1 Profit Margin Ratio = Profit After Tax/ Sales 11.3 12.51

2 Asset Turnover Ratio = Sales/Total Assets 6.81 6.72

3 Return on Assets =Profit Margin Ratio* Asset Turnover Ratio 76.96 84.024Return on Equity = Profit After Tax /Avg. shareholder's Equi 2.61 3.21

5 Return On Net Worth=Profit After Tax / Net Worth 78.87 87.41

Liquidity Ratios Dec '04 Dec '05

1 Current Ratio = Current Assets / Current Liabilities 0.62 0.69

2 0.3 0.35

3 Debtor Turnover Ratio = (sales / Debtors) 85.19 81.1

4 Inventory Turnover Ratio = Cost of goods Sold / Inventories 10.95 10.45

5 Total Asset Turnover Ratio = Sales/ Total Assets 6.81 6.72

Solvency Ratios Dec '04 Dec '05

1 Debt to Equity Ratio= Total Debt / Shareholder's Equity 0.08 0.15

2 Interest Cover Ratio= PBIT / Interest Expense 501.06 2234.67

Capital Market Ratios Dec '04 Dec '05

1 Earnings Per Share (EPS) 26.13 32.11

2 Dividend Per share= Equity Dividend/No. of shares 24.5 25

3 Operating Profit Per Share = Operating Profit / No. of shares 44.78 52.11

Liabilities


10/16

Dec '06 Dec '07 Dec '08


Dec '06 Dec '07 Dec '08

11.18 11.82 12.34

6.96 8.31 9.13

77.77 98.22 112.633.27 4.29 5.54

81.03 98.9 112.83

Dec '06 Dec '07 Dec '08

0.7 0.66 0.66

0.37 0.27 0.32

50.56 65.45 94.95

10.66 9.09 10.28

6.96 8.31 9.13

Dec '06 Dec '07 Dec '08

0.17 0.03 0.01

1094 741.94 474.09

Dec '06 Dec '07 Dec '08

32.68 42.92 55.39

25.5 33 42.5

55.21 70.96 87.12


11/16

RATIO ANALYSIS

A .Current Ratio:-

B .Quick Ratio:-

C .Debt-Equity Ratio:-

D.Debtor Turnover Ratio:

E.Inventory Turnover Ratio:

F.Profit Margin Ratio:

Importance:It indicates the firms short term solvency position. A ratio of 2:1 is considas ideal. If the ratio is less than one the firm faces problems in meeting its short obligations. Hence it is so important for every organization.

Interpretation: The current ratio of firm is well below the satisfactory level of 2:1 at around 0.6indicating the shortfall of liquidity in the firm which need to be accounted for.

Importance: As stock may not be converted in to cash quickly we can not measurefirms efficiency in meeting its obligations. Quick ratio is more accurate method Current ratio and is more useful. The ideal ratio is 1:1.

Interpretation: The quick ratio which is a better indicator of the liquidity position of the firm is aconsiderably less than the ideal level. The firm needs to considerably improve its liquidity posi

Importance: It indicates the relationship between the long term loans and share hofunds. So it is much important in the view of invester. It gives the information abourelation between the owners funds to the share holders funds. Theres no ideal ratio.

Interpretation: The debt-equity ratio has considerably come down from the high of year 2006 t2008 owing to decrease in the role of debt in the capital structure.

This measures the efficacy of a firm's credit and collectionpolicy and shows the no of times eacyear the debtor turns into cash .Higher the ratio the better it is.it kept decreasing till 2006 butagain start rising and became highest in 2008 which is a good sign for the company.

Importance: By determining this ratio we can know the cost of goods sold, with this we

restrict our CGS.This ratio is almost constant which shows that company is turning its inventories into finishedgoods at a constant pace which is satisfactory.The Net Sales have almost doubled in the givenyears which is very good.

This represents the profit made on sales.This should be as high as possible.The profit margin isincreasing for the company which is a good sign.


12/16

G. Asset turnover ratio

H.Return on Equity

I.Return on assets

J. Interest cover ratio

This represents how well the company is utilising its assets. As this ratio is increasing , this mecompany is ultilising its assetsmore efficiently.

This ratio is improtant from shareholders point of view. More it will be better it is , as it's is

increasring this is good for the investors

This is profit after tax divided by total assets . It represents profit made per unit of total assetsshould be high, as over the years this is increasing implying positive.

this shows the ability of the company to pay interest on debt , if it's high credit rating of thecompany is high and it's easy for the company to raise debt in future , this is increasing so it'sbetter.


13/16


14/16

1 2 3 4 5

Ratio=(Current Assets -Inventories)/CurrentLiabilities

1 2

20

40

60

80

100

1 2 3 4 5

Debt to Equity Ratio

Debt toEquityRatio= TotalDebt /Shareholder's Equity

1 2

500

1000

1500

2000

2500

In

1 2 3 4 5

10

20

30

4050

60

Earnings Per Share (E

Earnings PerShare (EPS)

1 2 3

10

20

30

40

50

D

1 2 3 4 5

20

40

60

80

100

Operating Profit Per S

OperatingProfit PerShare =OperatingProfit / No. ofshares


15/16

4 5

set Turnover Rati

AssetTurnoverRatio =Sales/TotalAssets

4 5

turn on Equity = P

Return onEquity =Profit After

Tax /Avg.shareholder's Equity

4 5

rrent Ratio = Curr

CurrentRatio =CurrentAssets /CurrentLiabilities

btor Turnover Rat


16/16

4 5

DebtorTurnoverRatio =(sales /Debtors)

3 4 5

erest Cover Ratio

InterestCoverRatio=PBIT /InterestExpense

4 5

ividend Per share=

DividendPer share=

EquityDividend/No. of shares

23 - Ramneek - Nestle

Documents

Transcript of 23 - Ramneek - Nestle