PROJECT REPORT ON
- 1. TOPIC :- FINANCIAL STATEMENT ANAYSIS
- 3. The present study is intended to examine the overall financial performance of the ITC LTD. From the beginning of the study to till now . The following are the specific objectives of the study. To present theoretical frame work relating to financial statements analysis. The study and analysis the financial performance of the ITC LTD in terms of liquidity, solvency, operating and profitability against the conventional financial norms and identity the short comings. To comparative study in regard to one firm with another firm or one department with another department of the financial statement analysis. To analyze the findings and suggestions of the firm. To study financial statement analysis is needed to know the financial status of the company.
- 4. The study of financial performance evaluation is confined to the financial position of ITC Ltd Performance Evaluation is confined only for the period 5 years i.e., from 2010 to 2015. The Financial Performance Evaluation is carried out on the basis of secondary data i.e., the annual reports of ITC Ltd To find out the financial stability of the organization using the different ratios. The study has been focused on ratio analysis, common size analysis, comparative analysis and trend analysis in ITC Ltd
- 5. It is only a study of internal reports. Financial statement analysis is based upon only monetary information and non-monetary factors are ignored. It does not consider changes in price level. As the financial statements are prepared on the basis of a going concern, it does not give exact position. Thus accounting concept and conventions cause a serious limitation to financial statement analysis. Changes in accounting procedures by a firm may often make financial statement analysis misleading. Analysis is only a means and not an end itself. The analyst has to make interpretation and drawn his conclusions. Different people may interpret the same analysis in different ways.
- 6. * ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the Company's ownership progressively Indianised, the name of the Company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio encompassing a wide range of businesses - Fast Moving Consumer Goods comprising Foods, Personal Care, Cigarettes and Cigars, Branded Apparel, Education and Stationery Products, Incense Sticks and Safety Matches, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business and Information Technology - the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited, 'where ‘ITC’ is today no longer an acronym or an initialized form. * The Company's headquarter building, 'Virginia House', which came up on that plot of land two years later, would go on to become one of Kolkata's most venerated landmarks. * ITC is today, a diversified multi-business conglomerate with a market capitalization of US $ 45 billion and a turnover of over US $ 7 billion, with a diversified portfolio of businesses spanning Fast Moving Consumer Goods, Paper & Packaging, Hotels, Agri Business and Information Technology. Currently the ITC group employs more than 32,000 people in its manufacturing facilities, offices and hotels at more than 60 locations across India. * ITC Ltd has completed it’s 104th Annual General Meeting (AGM) of the Company held on July 31, 2015, under Clause 35A.
- 7. Non-Cigarette FMCG segment registers a healthy revenue growth of 11.3% amidst subdued demand conditions. Hospitality sector continues to be impacted by a weak pricing scenario in the backdrop of excessive room inventory in key domestic markets and a sluggish macro-economic environment. Segment Results include additional depreciation charge due to revision in useful life of fixed assets in accordance with Companies Act, 2013 and gestation costs of new hotels. Agri Business profits up 8.3% driven by enriched mix and higher realisation. Paperboards, Paper & Packaging Segment impacted by the continuing slowdown in the FMCG industry, reduction of import duty under various regional Free Trade Agreements and input cost pressures. Highlights of A/Y 2015 Net Turnover +9.7% Pre-tax Profits (comparable) +13.0% Post-tax Profits (comparable) +12.5% Board recommends Dividend of Rs. 6.25 per share for FY15 (previous year Rs. 6.00 per share).
- 8. 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 MISSION To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value "ITC believes that its aspiration to create enduring value for the nation provides the motive force to sustain growing shareholder value”. “We want a champion team . We don’t want a collection of champion . Because it is a champion team that wins.We want to conduct in a manner that serve share holders in a spirit of trusteeship and also in a manner that serves our largest society” Y C Deveshwar Chairman
- 9. HarnessingDiversity StrategyofOrganisation Strategic Supervision Board of Directors Corporate Management Committee Strategic Management Divisional Management Committees Executive Management
- 10. The Padma Bhushan, one of the highest civilian awards in the country by the Government of India in recognition of his distinguished service of a high order to the Nation, in 2011. In 1986, Meridien Hotelier of the Year. In 1994 and 1995, the ILTD Division in Chirala and Anaparti won the "Best of all" Rajiv Gandhi National Quality Award In 1994, Marketing Man of the Year from A&M, the leading marketing magazine. In 1996, Distinguished Alumni Award from IIT, Delhi. In 1998, Honorary Fellowship from the All India Management Association In 2001, Manager Entrepreneur of the Year from Ernst & Young. In 2005,Honoured with the Teacher's Lifetime Achievement Award. In 2006,Inducted into the 'Hall of Pride' by the 93rd Indian Science Congress. In 2006, Business Person of the Year from UK Trade & Investment, the UK Government organization that supports overseas businesses in that country. In 2006, ITC's e-Choupal program won the Stockholm Challenge Award 2006 in the Economic Development category. This program enables over 3.5 million farmers to access crop-specific and customized information in their native village habitat and language. In 2007, SAM/SPG Sustainability Leadership Award conferred at the International Sustainability Leadership Symposium, Zurich.
- 11. It received the National Award for Excellence in Corporate Governance from the Institute of Company Secretaries of India in 2007. In 2010,The U.S.-India Business Council (USIBC) Award for Global Leadership. In 2010, ITC was ranked 6th amongst global consumer goods companies in sustainable value creation during 2005-09, by Boston Consulting Group. In 2011, all of ITC’s super premium luxury hotels were accorded LEED Platinum In 2012,Business Leader of the Year Award conferred by the All India Management Association (AIMA), India's apex body of professional management. Retail Visionary of the Year from Images, India's only fashion and retail trade magazine. ITC features on the Forbes Global 2000 rankings for 2012 at position 841. In the same rankings, the company's market value placed it as the 184th largest company in the world. Forbes has also included the company in Asia's Fab 50 Companies list. Certification, making ITC Hotels the ‘Greenest Luxury Hotel Chain in the World’. In 2013, ITC was ranked the third most admired company in India by Fortune. In 2014, The Brand Trust Report, published by Trust Research Advisory, a brand analytics company, ranked ITC in the 9th position among India's most trusted brands in the Diversified sector.