SCHOOL OF AGRI-BUSINESS MANAGEMENT“Nurturing Young Agri-Business Professionals for Evergreen Growth”

TOPIC :Financial Statement and their Analysis ( Nestle India)

Course Title :Financial Management

Course No. : ABM 522

Course Instructor : Mr. Dalip Raina

Prepared By: Ankita Choudhary

Nestle India

INDEX

LIVE BSE 4790.70 -21.10 (-0.44%)

Mar 11, 10:18

NSE 4788.50 -12.00 (-0.25%

Mar 11, 10:18

Company Info

Company Facts - Nestle India Registered Address M-5A, Connaught Circus 

, New Delhi Delhi 110001

Tel: 011-23418891 Fax: 011-23415130 Email: investor@in.nestle.comWebsite: http://www.nestle.inGroup: MNC Associate

Registrars Alankit Assignment Ltd. No.2E/21, Alankit House, 

Jhandewalan Extension New Delhi - 110055Delhi

Tel: 011-23541234, 42541234Fax: 011-42541201, 51540064Email: info@alankit.comWebsite: http://www.alankit.com

Management - Nestle India

Name Designation Antonio Helio Waszyk Chairman & Managing

Director 

Name DesignationShobinder Duggal Director

History 1959 - Incorporated at New Delhi .

The company was promoted by Nestle Alimentana S.A. through a wholly owned subsidiary,

Nestle Holdings Ltd., Nassau, Bahama Islands.

1987 - Installation of a new factory at Nanjangud (Karnataka), for the manufacture of instant coffee

1989 - The name of the company was changed from `Food Specialities Ltd.‘to `Nestle India Ltd.' on

24th March.

1990 - Company entered into chocolate business by introducing Nestle premium chocolates.

1993 - Samalkha factory was commissioned and expanded for cereal based products

. 1994 - Company launched a number of new products viz.,Cerelac Soya, Milk maid, Dessert Mixes,

Maggi

1995 - Company commenced construction of a new factory at Bicholim, Goa

- Company launched Kit Kat manufactures at the new factory at Ponda, Goa.

- Nanjangud factory was commissioned and the unit was to manufacture MILO

the World's Largest Selling Chocolate energy food drink.

- The Chennai-based Indian Food Fermentations tied up with Nestle India Ltd.,

to market its dosa and vada batter in consumer pack, in the country

1996 - During the year company launched MILO-Chocolate energy food drink

in South India and a range of culinary products like, Dosa and Sambar

mixes, pickles and new varieties of soups under the brand Maggie.

1997- Nestle India Ltd. (NIL) leads the list of the country's top 15

coffee exporters for the ongoing calendar year in terms of both

quantum and value for the period January 1 - October 23.

2000 - Nestle is set to enter the domestic bottled water business and will

launch the product under the brand name `Pure Life'.

2001- Nestle India Ltd. has launched `Pure Life', its mass-market bottled

water, adding one more premium brand

2006 - Nestle's starts Uttaranchal unit

2011 - opens new plant in Karnataka

2012- Celebrates 100 years

Company Background - Nestle India

Industry Name FoodProcessing - Dairy/Fruits/Others

House Name MNC Associate

Collaborative Country Name N.A.

Joint Sector Name N.A.

Year Of Incorporation 1959

Year Of Commercial Production N.A.

FinancialsBalance Sheet of Nestle India

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

  Dec '12 Dec '11  12 mths 12 mths

Sources Of Funds  

Total Share Capital 96.42 96.42

Equity Share Capital 96.42 96.42

Share Application Money 0 0

Preference Share Capital 0 0

Reserves 1,701.99 1,177.54

Revaluation Reserves 0 0

Networth 1,798.41 1,273.96

Secured Loans 0.24 0.84

Unsecured Loans 1,049.95 970.03

Total Debt 1,050.19 970.87

Total Liabilities 2,848.60 2,244.83

12 mths 12 mths

Application Of Funds

Gross Block 4,368.68 2,552.21

Less: Accum. Depreciation 1,164.41 976.46

Net Block 3,204.27 1,575.75

Capital Work in Progress 344.08 1,418.64

Investments 364.86 134.37

Inventories 745.58 734.04

Sundry Debtors 87.57 115.42

Cash and Bank Balance 236.96 25.55

Total Current Assets 1,070.11 875.01

Loans and Advances 180.60 256.36

Fixed Deposits 0.00 201.66

Total CA, Loans & Advances 1,250.71 1,333.03

Deffered Credit 0.00 0.00

Current Liabilities 1,259.51 1,113.13

Provisions 1,055.81 1,103.83

Total CL & Provisions 2,315.32 2,216.96

Net Current Assets -1,064.61 -883.93

Miscellaneous Expenses 0.00 0.00

Total Assets 2,848.60 2,244.83

Contingent Liabilities 103.86 0.00

Book Value (Rs) 186.53 132.13

Profit & Loss account of Nestle India

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

 Dec '12 Dec '11

  12 mths 12 mths

Income  

Sales Turnover 8,614.15 7,682.22

Excise Duty 287.6 191.4

Net Sales 8,326.55 7,490.82

Other Income 31.03 12.35

Stock Adjustments 100 56.93

Total Income 8,457.58 7,560.10

Expenditure  

Raw Materials 3,909.06 3,671.64

Power & Fuel Cost 370.89 295.81

Employee Cost 663.38 546.46

Other Manufacturing Expenses 115.07 120.49

Selling and Admin Expenses 0 1,200.14

Miscellaneous Expenses 1,542.81 159.07

Preoperative Exp Capitalised 0 0

Total Expenses 6,601.21 5,993.61

 12 mths 12 mths

Operating Profit 1,825.34 1,554.14

PBDIT 1,856.37 1,566.49

Interest 26.6 9.06

PBDT 1,829.77 1,557.43

Depreciation 277.15 153.33

Other Written Off 0 0

Profit Before Tax 1,552.62 1,404.10

Extra-ordinary items 0 0

PBT (Post Extra-ord Items) 1,552.62 1,404.10

Tax 484.69 426.38

Reported Net Profit 1,067.93 961.55

Total Value Addition 2,692.15 2,321.97

Preference Dividend 0 0

Equity Dividend 467.62 467.62

Corporate Dividend Tax 75.86 75.39

Per share data (annualised)  

Shares in issue (lakhs) 964.16 964.16

Earning Per Share (Rs) 110.76 99.73

Equity Dividend (%) 485 485

Book Value (Rs) 186.53 132.13

RATIOS

Dec 12 Dec 11

Profitability Ratios

Net Profit Margin(%) 12.77 12.75

Operating Profit Margin(%) 21.92 20.53

Liquidity And Solvency Ratios

Current Ratio 0.54 0.42

Quick Ratio 0.22 0.24

Management Efficiency Ratios

Inventory Turnover Ratio 11.55 11.60

Debtors Turnover Ratio 82.04 83.83

Historic Data

Period High : 5864.85

Period Low : 2455.50

Change in market-cap : 89.74%

Date Open High Low Close

2014 5310.15 5585 4630 4811.8

2013 4990.4 5864.85 4410 5297.25

2012 4139.9 5024.85 3930 4990.4

2011 3825.1 4549 3160 4172.7

2010 2536 4199.4 2455.5 3795.2