MANAGEMENT ACCOUNTS

TREND ANALYSIS

Projected by: Kinjal Kothari

Contents

Introduction to Trend Analysis1

How to calculate

ITC Company3

Conclusion4

2

INTRODUCTION TO

TREND ANALYSIS

•Trend analysis compares a single

observation over several years

•It help business owners and other

interested people to analyse the data in

financial statements to provide them with

better information

CALCULATION OF

TREND %•Why to calculate •How to calculate

•AMOUNT X 100

BASE YEAR

ITC LIMITED

•Incorporated on August 24, 1910 under the

name Imperial Tobacco Company of India

Limited.

•In 2001 named changed by ITC Limited.

•Company handles various business in various

segments.

,

Paper &

PackagingHotels Agri

Business

Information

Technology

Cigarettes Personal CareFoods Lifestyle

Retailing

Education & Stationery Matches Incense

Sticks

ITC Business Portfolio

Comments

•From the analysis we can see that co. is

growing at steady rate and remarkable

points are :

1. We can see that company’s capital is

increased by 105.33%, this is because of

issue of bonus shares in the year 2010-2011.

this shows that the company’s owned fund is

increasing.

2. Reserve and Surplus is constantly increasing

which shows that the company’s accumulated

profits is increasing at a growing rate. It shows

that company is making more profit.

3. By analysing sources of fund we can state

that, company is more dependent on owners

fund rather than borrowed fund.

4. Investment is also growing at increasing

rate. In last 4 years it has increased by

89.28%.

5. Current asset is increasing by 45.09%. This

is due to increase in cash and bank balance

and other current assets.

6. Net income and expenses are increasing

by 51.02% and 47.38% respectively. This

shows that the income of the co. is 3.64%

higher than its expenses.

Initiatives

•ITC’s e-Choupal – World’s largest rural

digital infrastructure.

•ITC’s Primary Education Initiative.

•ITC’s Afforestation Programme.

•ITC’s Women Empowerment Initiative.

•ITC’s Watershed Development

Programme.

•ITC’s Livestock Development Initiatives.