Company Analysis ITC Ltd (2009)

8/9/2019 Company Analysis ITC Ltd (2009)

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By

Group 6


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FMCG-Cigarettes

58%FMCG-others12%

Paper board

11%

Hotels% Agri business

15%

Segment wise sales


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ParameterMar'05

Mar'06

Mar'07

Mar'08

Mar'09

ales Growth % 21.53 20.22 9.98 8.29

OPM % 3 .55 3 .58 32. 7 31.71 33.00

NPM % 28.81 22.81 21.93 22.2 21.78

ROCE % 3 .15 3 .91 37.82 3 .25 35.5

Current Ratio 1.03 1.19 1.32 1.3 1.29

Debt EquityRatio

0.03 0.01 0.02 0.02 0.01


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Sales Growth fallen to below 10% due to the marketscenario

OPM Declining profitability till FY08

NPM Increasing non operating expenses

ROCE Close to 35%with a SD of 3

Current Ratio - Rising till FY08

Debt Equity Ratio Very low debt


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FMCG-Tobacco

FMCG-others

ITC Godfrey P.

OPM% 2 .48% 16.45%

Asset turnoverratio

3.45 1.53

ITC HUL

OPM% -16.89% 14.46%

Asset turnoverratio

1.26 5.2


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2009 2008 2007 2006

X1 18.68232024 16.71499135 16.02154074 12.08611232

X2 17.01701745 18.20934546 17.93357452 18.76838953

X3 34.6122039 36.60443124 37.24699647 36.26283156

X4 11.57449285 12.29238463 13.999685 74.66895247

X5 1.081419213 1.148675751 1.163781273 1.074138022

Z-score 4.898557765 5.179115875 5.178725408 5.490358922


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11.02

11

13.03

12.08

0

2

4

6

8

10

12

14

2006 200 2008 2009

UL

ITC


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Appropriation of profit to reserves and surplus-

ITC HUL

Equity 3 .44 21 .99

Reserve 13,302.55 1842.85

Debt 1 .55 421.95

Total asset 13,85 .54 2,482. 9

2006 2007 2008 2009 Total

ITC 1150 1250 1500 1500 5400

UL 125 142 200 250 1


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10.5

18.54

-21.09

23.39

-30

-20

-10

0

10

20

30

40

50

60

2006 2007 2008 2009

UL

ITC


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Fixed Assets:

Shown at cost of acquisition.

Software capitalized where it provides future enduringbenefits.

Major expenses involving construction are capitalised.

Depreciation

Assets depreciated over the estimated life or life based onrates specified in Schedule XIV to the CompaniesAct, 1956, whichever is lower, by equal annual installments.

Leasehold properties are amortized over period of lease

Capitalized Software is amortized over a period of 5 yrs.


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Inventories

Stated, including the Work-in-Progress, at lower of cost andnet realisable value .

Cost calculated on WeightedAverage Method.

Obsolete, Slow moving and defective inventories areidentified and provision is made where necessary.

Research andDevelopment

Capital expenditure under this head are shown in FixedAssets.

A

ll other expenditure is written off in the year it is incurred. Total R&D Expenditure 0. % of net turn over.


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Companys Carbon Positive, Water Positive and Solid WasteRecycling Positive ---status positive footprints.

ITCs Social and Farm Forestry initiative has greened over 90,000hectares and its Integrated Watershed Programmes contribute to

irrigating nearly 44,000 hectares of water-stressed land.

Total waste paper collected though WOW waste out of wealth programamounted to 6000 tonnes during the year.

Company has registered Clean Development Mechanism projects thathave already earned carbon credits.

ITC otel The Sonar is today the only hotel in the world to earncarbon credits.


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Companys partnerships with several globally renowned NGO

including BAIF , Development ResearchFoundation, Dhan, FES, MYRADA, Pratham, SEWA, SRIJAN,nd WOTR.

The initiative for the Economic Empowerment of Women alsocontinued apace. To date, 18,032 women have been organizedunder 1,296 self-help groups (S G) with total savings of Rs.13lakhs.

MoUs signed with the Governments of Rajasthan andMaharashtra for implementing watershed programmes .


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ITC believes that the governance process should ensure that the

resources are utilized in a manner that meets stakeholders aspirationsand societal expectations

This belief is reflected in the Companys deep commitment tocontribute to the triple bottom line , namely the development, nurture

and regeneration of the nations economic, social and environmentalcapital

Cornerstones of ITCs governance philosophy, namelytrusteeship, transparency, empowerment and accountability, control

and ethical corporate citizenship

Employee Stock Option Scheme -The Company granted 59,69,43Options during the financial year to the eligible employees of theCompany and some of its subsidiary companies


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Remuneration of Executive Directors is determined by theCompensation Committee comprising only Non-Executive

Directors

The Sustainability Committee guides the Company in integrating itssocial and environmental objective with its business strategies, andshape ITCs goals in contributing to climate change mitigation

ITC Code of Conduct for Prevention of Insider Trading (ITC Code), asrevised by the Board of Directors on 19th January, 2009, interalia, prohibits purchase / sale of securities of the Company by Directorsand employees while in possession of unpublished price sensitiveinformation in relation to the Company

The quarterly, half-yearly and annual financial results of the Companyare published in newspapers on an all India basis and are also postedon the Companys corporate website

Whistle

-BlowerPolicy:

The Company encourages an open door policywhere employees have access to the ead of the Business / Function


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Company Analysis ITC Ltd (2009)

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