Transcript Financial Management Project SMBA-09 Name of the Student Ashwini Rajeshirke Archita Jadia Haseeb Tisekar Durgesh D Lingarkar Shailesh Singh Janardhan G Kamath Ankita M Chokshi Pratik J Harsora Haresh Jain Soniya Jain Vaibhav.

Financial Management Project
SMBA-09
Name of the Student
Ashwini Rajeshirke
Archita Jadia
Haseeb Tisekar
Durgesh D Lingarkar
Shailesh Singh
Janardhan G Kamath
Ankita M Chokshi
Pratik J Harsora
Haresh Jain
Soniya Jain
Vaibhav Patel
Roll nos.
20
8
19
30
21
27
31
32
37
39
44
Company Overview
• Pioneer in the consumer and industrial specialty
chemicals business in India
• High market share and strong position in most products
and segments
• Operations in 8 countries with manufacturing facilities
• Brand "Fevicol" ranked as # 1 Household care brand by
Brand Equity in 2007-08
• Pidilite ranked as # 1 company in chemical segment by
Business Today (2009)
• Consistent growth in sales, profits and dividend payout
GROWTH
Consistent Dividend Payout
50.0%
40.0%
39.7%
36.9%
35.4%
30.2%
30.0%
27.5%
20.0%
10.0%
0.0%
2005-06
2006-07
2007-08
Dividend Payout Ratio
Dividend Payout = Dividend / PAT
2008-09
2009-10
FINANCIAL ANALYSIS
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STOCK WATCH
DIRECTORS REPORT 31.03.2010
COMMON SIZE STATEMENT
CAPITAL STRUCTURE
CONTINGENT LIABILITIES
RATIO ANALYSIS
Stock Watch
The overall high has been in the month of Bonus
Issue i.e March 2010
Performance vis BSE sensex
DIRECTOR’S REPORT (YEAR ENDED
31.03.2010)
•
The Board reported about the expansion of the adhesives manufacturing capacities at
Kalamb in Himachal Pradesh and Daman.
•
A drive in improving performance through greater involvement and participation of
employees was initiated during the year at the manufacturing units.
•
The Board updated about the Synthetic Elastomer Project which is a Monomer and
Polymer Plant.
•
The report highlighted on the Term Finances, Capital Expenditure and amount raised by the
company through issue of Foreign Currency Convertible Bonds
•
Subsidiaries performance has also been outlined in the Board’s Report.
•
The Board is positive about the Sales Growth in the Current Year. However margins will be
under pressure due to significant increase in inputs costs
•
The Board’s Report is followed by Corporate Social Responsibility Report which highlights
the new initiatives taken by the company in the areas of health care, education and rural
development..
Pidilite Industries Limited--------COMMON SIZE BALANCE SHEET
31.03.2010
(Rs in million)
Balance Sheet
SOURCES OF FUNDS
Shareholders’ Funds
Share Capital
Reserves and Surplus
Loan Funds
Secured Loans
Unsecured Loans
The Company relies
more on internal sources
than on borrwed
funds.Also Reserves
have increased and
borrowings decreased
Deferred Tax Liability (Net)
TOTAL
APPLICATION OF FUNDS
Fixed Assets
Gross Block
Gross Block of
Fixed Assets
has increased
Less: Accumulated Depreciation/Amortisation
Net Block
Capital Work in Progress
Investments
Current Assets, Loans and Advances
Inventories
Sundry Debtors
Cash and Bank Balances
Other Current Assets
Loans and Advances
Less: Current Liabilities and Provisions
Current Liabilities
Provisions
N et Current Assets
TOTAL
Investments have
increased
tremendously
Current Assets
have
decreased as
% as well as
absolutely
whereas
Current
liablitiea have
increased % as
well as
absolutely
%
31.03.2009
(Rs in million)
%
31.03.2008
(Rs in million)
%
506.13
8879.66
9385.79
3.61
63.36
66.97
253.07
7083.08
7336.15
1.89
53.03
54.92
281.82
6142.99
6424.81
2.37
51.74
54.11
2184.50
2029.80
4214.30
15.59
14.48
30.07
2593.09
2987.05
5580.14
19.41
22.36
41.78
1904.27
3121.71
5025.98
16.04
26.29
42.33
415.36
2.96
440.87
3.30
422.90
3.56
14015.45
100.00
13357.16
100.00
11873.69
100.00
8063.91
57.54
7778.35
58.23
6814.83
57.39
3889.19
4174.72
2774.02
27.75
29.79
19.79
3432.81
4345.54
2387.47
25.70
32.53
17.87
2973.48
3841.35
1629.32
25.04
32.35
13.72
6948.74
49.58
6733.01
50.41
5470.67
46.07
5106.64
36.44
2407.10
18.02
1623.69
13.67
2506.31
2387.59
331.16
51.51
962.19
6238.76
17.88
17.04
2.36
0.37
6.87
44.51
2288.93
2413.03
1270.76
211.15
868.93
7052.80
17.14
18.07
9.51
1.58
6.51
52.80
2655.44
2238.43
1485.50
32.41
860.48
7272.26
22.36
18.85
12.51
0.27
7.25
61.25
3301.93
976.76
4278.69
23.56
6.97
30.53
2241.16
594.59
2835.75
16.78
4.45
21.23
1895.12
597.81
2492.93
15.96
5.03
21.00
1960.07
13.99
4217.05
31.57
4779.33
40.25
14015.45
100.00
13357.16
100.00
11873.69
100.00
(Rs. in
millions)
(Rs. in millions)
COMMON SIZE INCOME STATEMENT
%
31.03.2010
INCOME
Turnover : Gross
Less:Excise Duty
Sales:(Net)
Other Income
EXPENDITURE
Materials
Other Expenses
Depreciation
Increase in Turnover
Almost more than 50% of
Sales is Materials Expenses
Profit before tax
Income Tax Expenses
Current tax
Less: MAT Credit Entitlement
Deferred Tax
Fringe Benefi t Tax
Total Tax Expense
Profit for the year
Prior year Tax Provision written back (Net)
Balance brought forward from previous year
Profit available for appropriation
Appropriations:
Dividend on Preference Share Capital
Proposed dividend on Equity Share Capital
Corporate Tax on dividend
Profit which had fallen in
2009 has rised in 2010 also
it is 14 % of Sales
Company is
consitent in
Dividend Payment
Transfer to Capital Redemption Reserve
Transfer to Debenture Redemption Reserve
Transfer to General Reserve
Balance carried to Balance Sheet
Earnings per share:
Basic (Rs)
Diluted (Rs)
Face Value of Share (Re)
(Rs. in millions)
%
EPS is on
enhanced
capital base
%
31.03.2009
31.03.2008
20,215.34
917.89
19,297.45
271.77
104.76
4.76
100.00
1.41
19,073.50
1,462.28
17,611.22
238.92
108.30
8.30
100.00
1.36
17023.71
1670.63
15353.08
253.46
110.88
10.88
100.00
1.65
9958.16
5858.47
463.86
51.60
30.36
2.40
10328.35
5417.62
472.16
58.65
30.76
2.68
8430.82
4547.91
385.05
54.91
29.62
2.51
3,288.73
17.04
1,632.01
9.27
2,242.76
14.61
565.29
142.29
423.00
-25.49
2.93
0.74
2.19
-0.13
182.45
59.9
122.55
17.96
27.71
1.04
0.34
0.70
0.10
0.16
248.94
60.15
188.79
140.38
34.05
1.62
0.39
1.23
0.91
0.22
397.51
2,891.22
43.73
2.06
14.98
0.23
168.22
1,463.79
0
0.96
8.31
0.00
363.22
1,879.54
3.99
2.37
12.24
0.03
779.13
4.04
720.27
4.09
525.16
3.42
3,714.08
19.25
2184.06
12.40
2,408.69
15.69
0
759.20
126.10
885.30
0.00
3.93
0.65
4.59
0.75
442.87
75.38
519
0.00
2.51
0.43
2.95
0
442.87
75.27
518.14
0.00
2.88
0.49
3.37
0.00
0.00
28.75
0.16
0
28.75
322.46
1,500.00
1.67
7.77
257.18
600
1.46
3.41
70.28
1100
257.18
600
1,006.32
5.21
779.13
4.42
720.27
4.69
5.8
5.64
2.89
2.81
7.44
7.38
1
1
1
SHARE CAPITAL
The Authorised Capital of the Company as on 31st March 2010 is Rs. 70,00,00,000 divided into 70,00,00,000 equity shares
of Re.1 each. The Issued Subscribed & Paid up Capital of the Company is Rs.50,61,34,612 divided into 50,61,34,612 equity
shares of Re.1 each. As can be seen the Authorised as well as Paid up capital has increased pursuant to Bonus Issue of 1:1.
Capital Structure from the period 1989 to 2009 is seen below.
CONTINGENT LIABILITIES & DUES
As at
31st March
2010
(Rs. In millions)
As at
31st March
2009
(Rs. In millions)
As at
31st March
2008
(Rs. In millions)
48.98
56.02
69.77
647.00
565.30
396.50
Iii
Disputed liabilities in respect of Income Tax,
Sales Tax,
Central Excise and Customs (under appeal)*
323.80
112.25
115.62
iv
Claims against the company not acknowledged
as debts.
81.44
76.07
-
Contingent liabilities not provided for:
i
ii
Guarantees given by Banks in favour of
Government and others
Guarantees given by Company
*Tax dues as mentioned in Auditors Report for the year ended 31st March 2010
RATIO ANALYSIS
CONCLUSION
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The financial analysis of the company can be summarized as follows:
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The sales growth of the company is on the rise. The profitability of the Company
significantly improved in the current year due to lower material costs, strengthening
of Indian rupee, lower duties and control on costs. Sales growth picked up in the
second half of the year, due to improved economic conditions.
•
The share prices of the company have also almost doubled vis-à-vis last year.
•
The Operating Profit and Net Profit, for the year at Rs.4132 million and Rs.2891
million increased by 60% and 97% respectively.
•
The Total Assets of the company are comparatively lower than its competitors.The
company should consider competitors financials and map its future planning .
•
The stake holders have benefited with the Bonus issue and dividend payment.
•
Company should give attention to its increasing liabilities and inventories. The
working capital of the company had decreased considerably. The short term liquidity
position of the company is area of concern.
Thank You