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Program & Batch: PGDM 2014-2016
Term: I
Course Name: Financial Reporting and Analysis
Name of the faculty: Dr. Puja Aggarwal
Topic/ Title : Tata Coffee Pvt. Ltd
Original or Revised Write-up: Original
Group Number: Six(6) from Section G
Contact No. and email of
Group Coordinator:
9873201218/Ankush Kunzru
Group Members: Sl. Roll No. Name
1 140102065 Krishna Ravi Shankar Karanam
2 140101026 Ankush Kunzru
3 140103066 Harneet Singh Bahri
4 140101139 Saiyam Arora
5 140101144 Sanchita Krishna
6 140103166 Sudheshna Sampathkumar
7 140103169 Suneet Raj Gantayat
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INDEX
Acknowledgement ..................................................................................... 4
1. Company Introduction: .................................................................... 5
2. SWOT snapshot: ............................................................................... 5
3. SWOT - Analysis ............................................................................... 6
a. Strengths ........................................................................................ 6
b. Weakness ....................................................................................... 6
c. Opportunity ................................................................................... 7
d. Threats ........................................................................................... 7
4. Financial Statements ....................................................................... 8
i. Balance Sheet ................................................................................ 8
ii. Profit And Loss Statement ........................................................... 8
5. Ratio Analysis ................................................................................... 9
a. Profitability ratio ......................................................................... 10
i. Net Profit Ratio: .......................................................................... 10
ii. Operating profit ratio: ................................................................. 10iii. Return on equity ......................................................................... 10
b. Liquidity Ratio .............................................................................. 11
ii. Liquid ratio .................................................................................. 11
c. Solvency Ratio ............................................................................. 12
i. Debt Equity ratio ......................................................................... 12
ii. Operating coverage ..................................................................... 12
d. Turnover Ratio ............................................................................. 12i. Inventory turnover ratio .............................................................. 12
ii. Inventory holding period ............................................................. 12
iii. Debtor turnover ratio ................................................................... 13
iv. Average collection period............................................................. 13
v. Credit turnover ratio .................................................................... 13
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vi. Average payment period .............................................................. 14
i. Dividend yield ratio ...................................................................... 14
ii. Dividend payout ratio .................................................................. 14
iii. Price earnings ratio ...................................................................... 15
6. Vertical Analysis ............................................................................. 15
i. Balance Sheet ............................................................................... 15ii. Profit And Loss Statement ........................................................... 17
j. Horizontal Analysis ........................................................................ 18
i. Balance Sheet ................................................................................ 18
ii. Profit And Loss Statement ............................................................ 19
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AcknowledgementWe would like to take this opportunity to express our sincere thanks and
regards to our Professor, Puja Aggarwal, for her exceptional guidance
throughout the project as well during the course of the subject Financial
Reporting and Analysis(FRA). Her teachings shall remain deeply rooted
within us and will help us in all our endeavors.
We would like to thank all the department point of contacts and studentswho took precious time out of their busy schedules and helped us in this
project by providing relevant information.
Last but not the least, we would like to thank friends and family of all of
us who directly or indirectly helped us to complete this project report.
It goes without saying that we do not mean lack of gratitude for those,
whom we may have omitted in this brief acknowledgement.
Sl. Roll No. Name
1 140102065 Krishna Ravi Shankar Karanam
2 140101026 Ankush Kunzru
3 140103066 Harneet Singh Bahri
4 140101139 Saiyam Arora
5 140101144 Sanchita Krishna
6 140103166 Sudheshna Sampathkumar
7 140103169 Suneet Raj Gantayat
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1. Company Introduction:The company was officially formed in 2000, but its operations date back
to 1922. With 19 coffee estates in southern India, the company is
arguably one of the largest manufacturers and is the second exporter of
coffee. The company has won several awards for its social initiatives.
Quick Facts
Revenue INR 650.92
Profit(PAT) - INR 106 crores
Production - 145.7 million bags
Cultivated land - 8037 hectares
2.SWOT snapshot:
Strengths
Brand value
Strong presence
Exclusive partnerships
Largest integrated coffee
business in the world
Opportunities
New markets exploration
Market competition
consolidation
No significant competitorin India
Potential for growth with
introduction of state of the
art machinery
Rain water harvesting
Weakness
Weather dependence
Major environmental
challenges in Brazil
Price-demand fluctuations
Fall in harvested crop
Threats
Dumping in international
market
ForEx loss
Workforce issues
Crop diseases
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3. SWOT - Analysis
a. Strengths
Tata Coffee enjoys a good brand value which is boosted by several
international standardizations for quality and its processes
Strong presence across multiple geographies makes the demand
resistant to local downturns (as witnessed recently in the Russian
markets)
Recent tie up with Starbucks India has been helpful in promoting
products via the use of Tata coffee beans in the products sold by
Starbucks India
Tata coffee is the largest integrated coffee business in the world.They stretch across growing, curing, to manufacture and marketing
of value added coffee products.
Better business prospects, after consolidation in Japan.
Starbucks India is also helping Tata Coffee with process know-how
b. Weakness Significant dependence on Indian temperature conditions and
rainfall for growing the product. The product quality gets affected
and becomes prone to diseases with a variance in temperature
Significant environmental challenges in Brazil has lead to a
degradation of the soil quality leading to significant fall in current
and potential future production levels
Reduction in output in the last financial year lead to a deficitsituation in the Closing stock value(buffer stock) across the market
in Brazil. This lead to a significant rise in the prices of the Arabica
beans, adversely affecting demand
Poorer production levels due to poor rainfalls in the past year in
India to the tune of 30%
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c. Opportunity
Expansion into new markets like the middle east will lead to better
business prospects, revenue and eventually profits
With a significant increase in the price in the coffee beans in Brazil
there has been a reduction in competition in instant coffeebusiness due to their lack of ability to stay afloat
Potential for growth with the introduction of state of the art
machinery at Kushalnagar plant for coffee curing which has
brought about better efficiency
The company has started rain water harvesting projects to help
bridge the gap between water available vs water required.
d. Threats
Dumping from Ecuadorian players leading to market loss in
certain countries
As Tata Coffee works across several geographies and its
transactions Dependency on dollar valuation for profitability(INR
31 Lakhs)
The company faces a ever rising challenge of lack of skilled
workers. To the add to the aging of the existing labour is a concern
point for future operations
Threat to output with rising White stem borer incidents in
Arabica crop due to changing weather in the Coorg district, which
is one of the largest plantations for Tata Coffee
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4. Financial Statements
i. Balance Sheet
Particulars31-Mar-13 (In
lakhs)31-Mar-12(In lakhs)
LiabilitiesEquity And Liabilities
Share Capital 1867.7 1867.7
Reserves And Surplus 50577.64 43858.02
52445.34 45725.72
Non Current Liabilities
Long Term Borrowings 4411.87 2416.8
Deferred Tax liability 721.79 1056
Other Long Term Borrowings 168.2 149.02
Long Term Provisions 2390.48 1521.1
7692.34 5142.92Current Liabilities
Short Term Borrowings 5530.66 1662.27
Trade Payables 2913.73 1237.8
Other Current Liabilities 6814.42 6811.41
Short Term Provisions 4431.62 5086.13
19690.43 14797.61
Total Liability 79828.11 65666.25
Assets
Non Current Assets
Fixed Assets 24211.9 22912.36
Capital Work In Progress 5384.29 228.67
Non Current Investments 14563.44 14564.09
Long Term Loans And Advances 1999.76 4180.77
Other Non Current Asset 8.49 19.03
46168.5 41904.94
Current Assets
Inventories 15920.44 12395.28
Trade Receivables 4959.95 4434.72Cash And Bank Balances 2655.33 1407.05
Short Term Loans And Advances 10189.22 5416.91
Other Non Current Assets 234.67 107.35
33659.61 23761.31
Total Asset 79828.11 65666.25
ii. Profit And Loss Statement
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ParticularsFY2013-14(in lakhs)
FY2012-13(in lakhs)
Income
Revenue from Operations 65,091.63 59,807.96
Other Income 3,518.07 2,220.68
Total Revenue 68,609.70 62,028.64
Expenses
Cost of Material Consumed 20,936.80 18,968.94
Purchase of Stock-in-Trade 3,396.10 3,137.25
Change in Inventories of Finished
Goods/Work-in-progress/ stock-in-
trade -3,054.62 -1,584.39
Employee Benefits Expense 13,823.92 12,022.99Finance Costs 491.31 454.96
Depreciaton and amortization
expense 2,050.74 1,477.76
Other Expenses 16,142.28 13,477.45
Total Expenses 53,786.53 47,954.96
Profit before exceptional items and
taxes 14,823.17 14,073.68
Exceptional items 0 -958.78
Profit before tax 14,823.17 13,114.90
Tax expenses
Current tax 3,860.12 4,188.00
Excess Tax provision written back -669.8 -108.15
Deferred tax 975.84 -334.21
Total 4,166.16 3,745.64
Net Profit for the Year 10,657.01 9,369.26
5. Ratio Analysis
Ratio analysis is a tool which helps in making comparisons anddraw relationships between components of financial statements.
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a. Profitability ratio
i. Net Profit Ratio:
It measures the amount of net profit earned per each rupee of revenue.
An increased net profit ratio indicates a greater overall efficiency of the
business. The ratio has increased even though the net sales has gone up,implying the Net profit has increased more than the revenue.
ii. Operating profit ratio:
Operating profit ratio indicates operational efficiency of the business.
This could be on the account of increased profits or reduced costs. A
greater OPR shows that the company has greater operational efficiency.
iii. Return on equity
RoE indicates the profits generated as a result of the shareholders fundsthat have been invested. The increase in this ratio indicates betterreturns for the shareholders of the business on their capital invested.
Ratio Formula 2013 2012
Net Profit ratio PAT/Netrevenue fromOps
16.37% 15.67%
Ratio Formula 2013 2012
Operating profitratio
EBIT/Netrevenue fromOperations
23.53% 22.68%
Ratio Formula 2013 2012
Return onequity
PAT/Shareholdersfund
17.65% 17.87%
Ratio Formula 2013 2012Return on EBIT/Shareholders 24.01% 23.87%
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iv. Return on capital employed
ROCE ratio shows the firms profitability as a proportion of the funds
that have been invested. The funds invested have increased by almost
17% during the period. However the profitability has gone up by 24%
showing better returns on the capital.
v. Return total assets
This ratio shows the utilization of the assets as a function of the
profits earned by the company. Then increase in the ratio on an
increased base shows a better utilization. This has been helped by an
almost 20% increase in profits YoY.
b. Liquidity Ratio
i. Current ratio
The current ratio indicates the liquidity available in the company. The
CR of the company has improved however this has been on the account
of greater Stock levels and an increase in short term advances. Which
may not be a desirable position for the firm.
ii. Liquid ratio
This test helps in assessing the companys ability to pay its current debts
as they are due. There has been a marginal increase in this as a result ofbetter cash balance.
capitalemployed
fund + Long termborrowings
Ratio Formula 2013 2012
Return on total
assets
PAT/Total
Assets
12.06% 11.74%
Ratio Formula 2013 2012
Current ratio CurrentAssets/CurrentLiabilities
2.01:1 1.71:1
Ratio Formula 2013 2012
Return on totalassets
PAT/TotalAssets
1.03:1 0.9:1
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c. Solvency Ratio
i. Debt Equity ratio
This ratio has improved as firm has a larger equity reserves and surplusbase in comparison to the previous year.
ii. Operating coverage
This ratio indicates the company ability to pay its interest obligations. A
very high ratio is a favourable position to be in implying that the firm can
take more debt.
d. Turnover Ratio
i. Inventory turnover ratio
This measure helps in assessing the number of times the inventory is
being sold during a period. This ratio is better than several competitors.
ii. Inventory holding period
Ratio Formula 2013 2012Return on totalassets
PAT/OwnersEquity
5.58:1 8.41:1
Ratio Formula 2013 2012Interestcoverage ratio
EBIT/Interestobligation
31.17:1 29.82:1
Ratio Formula 2013 2012
Inventoryturnover ratio
COGS/Avg.Inventory
1.08:1 1.29:1
Ratio Formula 2013 2012
Inventoryholding period
365/ITR 338.2 days 283.1days
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This measure indicates the companies efficiency in managing inventory.
A higher ratio is not a good sign as it means that some of the inventory is
not moving in the organization.
iii. Debtor turnover ratio
It measures the efficacy of firms credit policy and collection mechanism
and shows the number of times receivables are turned into cash. Higher
value indicates receivables are being converted rapidly into cash and
quality of companys receivable is good.Debtors turnover ratio decreased from 12.505 to 10.380 indicating that
more repayment period is being allowed to the debtors than previousyear
iv. Average collection period
Average collection period increased from29.186 to 35.16 days indicatingmore repayment time is being allowed to the debtors
v. Credit turnover ratio
It gives us a view of rate at which company pays back its creditors. The
higher the value of ratio the faster is company paying of its debts as it is
in a strong financial position or it is possible company is unable to getcredit for a longer term.
The ratio improved significantly indicating it is paying back its creditorsfaster.
Ratio Formula 2013 2012
Debtor turnoverratio
Credit sales/Avgdebtors
10.38083 12.50593
Ratio Formula 2013 2012
Avg collectionperiod
365/debtorturnover ratio
35.16097 29.18616
Ratio Formula 2013 2012
Credit turnover
ratio
Credit
purchase/Avg.creditors
10.2209 7.586904
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vi. Average payment period
It is the time period taken to pay back the suppliers of goods.A lower
value indicates that it is paying off its debts faster. This may be due to the
fact that it has strong financials or it might be unable to get long termcredit from suppliers.
The average payment period decreased from 48.109 days to 35.711 days
.Looking at the financial statement company looks in a strong position to
pay off its debt and this is why there is a decrease in the number of daysfor payment period.
e. Investment valuation ratios
i. Dividend yield ratio
*Market prices as on 14 Aug. 2013 and 14
It represents the current cash return to shareholders. The dividend yield
increased from 1.25% to 1.45 % this year making the stock moreattractive for investment purpose.
ii. Dividend payout ratio
The ratio tells how much company is paying its shareholders out of the
earnings made by it. The ratio has decreased from previous year
indicating the company is sharing fewer amounts of earnings as dividendas it did in the previous year.
Ratio Formula 2013 2012
Averagepayment period
365/creditturnover ratio
35.71114 48.10922
Ratio Formula 2013 2012
Dividend yield
ratio
Dividend per
share/Marketprice per share
1.45 1.25
Ratio Formula 2013 2012Dividend payoutratio
Dividend pershare/Earningsper share
22.783 24.9203
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iii. Price earnings ratio
*Market prices as on 14 Aug. 2013 and 14
The PE ratio tells how much an investor is willing to pay per rupee for
companys earnings. A lower value of PE would make a share more
attractive to invest in as higher returns and less of risk is assumed.PE
ratio of the company decreased from 20.175 to 16.018 in FY13-14indicating that stock is more attractively priced to invest in.
6. Vertical Analysis
i. Balance Sheet
Particulars31-Mar-13(in lakhs) Percentage
31-Mar-12(in lakhs) Percentage
Liabilities
Equity And Liabilities
Share Capital 1867.7 2.34% 1867.7 2.84%Reserves And Surplus 50577.64 63.36% 43858.02 66.79%
52445.34 65.70% 45725.72 69.63%
Non Current Liabilities
Long Term Borrowings 4411.87 5.53% 2416.8 3.68%
Deferred Tax liability 721.79 0.90% 1056 1.61%
Other Long Term Borrowings 168.2 0.21% 149.02 0.23%
Long Term Provisions 2390.48 2.99% 1521.1 2.32%
7692.34 9.64% 5142.92 7.83%
Current LiabilitiesShort Term Borrowings 5530.66 6.93% 1662.27 2.53%
Trade Payabales 2913.73 3.65% 1237.8 1.88%
Other Current Liab 6814.42 8.54% 6811.41 10.37%
Short Term Provisions 4431.62 5.55% 5086.13 7.75%
19690.43 24.67% 14797.61 22.53%
Total Liabilities 79828.11 100.00% 65666.25 100.00%
Assets
Non Current Assets
Fixed Assets 24211.9 30.33% 22912.36 34.89%Capital Work In Progress 5384.29 6.74% 228.67 0.35%
Ratio Formula 2013 2012
Price earningsratio
Market price ofshare/Earnings
per share
16.01823 20.17544
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Non Current Investments 14563.44 18.24% 14564.09 22.18%
Long Term Loans AndAdvances 1999.76 2.51% 4180.77 6.37%
Other Non Current Asset 8.49 0.01% 19.03 0.03%
46168.5 57.83% 41904.94 63.82%
Current AssetsInventories 15920.44 19.94% 12395.28 18.88%
Trade Receivables 4959.95 6.21% 4434.72 6.75%
Cash And Bank Balances 2655.33 3.33% 1407.05 2.14%
Short Term Loans AndAdvances 10189.22 12.76% 5416.91 8.25%
Other Non Current Assets 234.67 0.29% 107.35 0.16%
33659.61 42.17% 23761.31 36.18%
Total Asset 79828.11 100.00% 65666.25 100.00%
Share capital in comparison to liabilities decreased from 2.84% to 2.34 %
.This is because owners money remained constant and liabilities
increased There is an increase in reserves and surplus. However, when
comparison is made with liabilities there is a decline from 66.79% to
65.70%.Long term borrowings in comparison to revenues have increased
considerably from 3.68% to 5.53%.There is a decrease in deferred tax
liability when compared as percentages of revenue. As a result,Non
current liabilities have increased in comparison to revenue from 7.83%
to 9.64%.
Short Term Borrowings as a percentage of total liabilities have gone up
(from 2.5 to 6.9%) considerably indicating company is taking more
credit than previous year in the short term. Trade payables as percentage
of revenue have also gone up. However ,there is a slight decline in other
liabilities and short term provisions due to which current liabilities haveonly gone up by 2%.
Share of non current assets in total assets has decreased from 63.8% to
57.8% .This is because share of fixed assets has gone down from 34.8%to 30.3% and share of non current investments has gone down from22.1% to 18.2%.
The share of current assets increased from 36.17 %to 42.17%.The reason
being short term advances and loans have almost doubled from previous
year 5416.9 lakhs to 10189.9 lakhs and in comparison with assets havegone up from 8.25% to 12.76%.
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ii. Profit And Loss Statement
ParticularsFY2013-14(in lakhs) Percentage
FY2012-13(in lakhs) Percentage
IncomeRevenue from Operations 65,091.63 94.87 59,807.96 96.41991
Other Income 3,518.07 5.13 2,220.68 3.580088
Total Revenue 68,609.70 100.00 62,028.64 100.00
Expenses
Cost of Material Consumed 20,936.80 30.52 18,968.94 30.58094
Purchase of Stock-in-Trade 3,396.10 4.95 3,137.25 5.057744
Change in Inventories of
Finished Goods/Work-in-
progress/ stock-in-trade -3,054.62 -4.45 -1,584.39 -2.55429
Employee Benefits Expense 13,823.92 20.15 12,022.99 19.38297
Finance Costs 491.31 0.72 454.96 0.733468
Depreciaton and amortization
expense 2,050.74 2.99 1,477.76 2.382383
Other Expenses 16,142.28 23.52769 13,477.45 21.72779
Total Expenses 53,786.53 78.39 47,954.96 77.31
Profit before exceptional
items and taxes 14,823.17 21.61 14,073.68 22.689
Exceptional items 0 0 -958.78 -1.54571
Profit before tax 14,823.17 21.61 13,114.90 21.1433
Tax expenses
Current tax 3,860.12 5.63 4,188.00 6.75172
Excess Tax provision written
back -669.8 -0.97625 -108.15 -0.17435
Deferred tax 975.84 1.422306 -334.21 -0.5388
Total 4,166.16 6.07 3,745.64 6.038565
Net Profit for the Year 10,657.01 15.53 9,369.26 15.10473
Total expenses were 77.3%of revenues in fy12 wheras, they were 78.39%
of the revenues in fy13 indicating expenses increased more in
comparison to the revenues. Purchases in comparison with revenue
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remained almost at same levels. Profit before tax in comparison to the
revenues has also remained at same levels. This happened due to the fact
that there was an exceptional item in fy12 which brought down the profit
ratio to 21.5%.The current taxes as compared with revenues declined this
year from 6.75% to 5.63%.However the overall tax level remained the
same as there was an increase in deferred tax payments from -.5%of
revenues to 1.4% of revenues.Net profit also remained as compared torevenues was in line with previous year.
j. Horizontal Analysis
i. Balance Sheet
Particulars
31-Mar-13
(in lakhs)
31-Mar-12
(in lakhs)
Change
YoY
% change
YoYLiabilities
Equity And Liabilities
Share Capital 1867.7 1867.7 0 0.00%
Reserves And Surplus 50577.64 43858.02 6719.62 15.32%
52445.34 45725.72 6719.62 14.70%
Non Current Liabilities
Long Term Borrowings 4411.87 2416.8 1995.07 82.55%
Deferred Tax liability 721.79 1056 -334.21 -31.65%
Other Long Term Borrowings 168.2 149.02 19.18 12.87%
Long Term Provisions 2390.48 1521.1 869.38 57.15%7692.34 5142.92 2549.42 49.57%
Current Liabilities
Short Term Borrowings 5530.66 1662.27 3868.39 232.72%
Trade Payables 2913.73 1237.8 1675.93 135.40%
Other Current Liabilities 6814.42 6811.41 3.01 0.04%
Short Term Provisions 4431.62 5086.13 -654.51 -12.87%
19690.43 14797.61 4892.82 33.06%
Total Liability 79828.11 65666.25 14161.86 21.57%
Assets
Non Current Assets
Fixed Assets 24211.9 22912.36 1299.54 5.67%
Capital Work In Progress 5384.29 228.67 5155.62 2254.61%
Non Current Investments 14563.44 14564.09 -0.65 0.00%
Long Term Loans AndAdvances 1999.76 4180.77 -2181.01 -52.17%
Other Non Current Asset 8.49 19.03 -10.54 -55.39%
46168.5 41904.94 4263.56 10.17%
Current Assets
Inventories 15920.44 12395.28 3525.16 28.44%
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Trade Receivables 4959.95 4434.72 525.23 11.84%
Cash And Bank Balances 2655.33 1407.05 1248.28 88.72%
Short Term Loans AndAdvances 10189.22 5416.91 4772.31 88.10%
Other Non Current Assets 234.67 107.35 127.32 118.60%
33659.61 23761.31 9898.3 41.66%Total Asset 79828.11 65666.25 14161.86 21.57%
j.
There has been an increase in reserves and surplus by 15.32% leading to
increase in equity and liabilities section.Non current liabilities have
increased by 49.57%.The reason for this is long term borrowings have
gone up by 82.55% and also long term provisions have increased by57.15%.However there is a decrease of deferred tax liabilities by 31.65%.
Current liabilities have gone up by 33.06%.The reason being short termborrowings have increased significantly by 232.7%.This shows that
company is increasing its liabilities in a great way by taking loans.Also
trade payables are up by 132%.As a result of rise in both non current and
current liabilities there has been a significant increase of 21.57% inliabilities.
Non current assets have gone up by 10.17%.This is due to increase in
capital work in progress which has gone up by 2254%(from 228 to 5384
lakhs).But there is a significant decrease in long term loans and advancesand other non current assets.
Current assets have gone up by 41.6%.Almost all the sub section have
shown a good increase .Inventories have increased by 28% and cash
balances have increased by 88% indicating the strong financial positionof company.As a result of this total assets have increased by 21.57%.
ii. Profit And Loss Statement
Particulars FY2013-14 FY2012-13 Change %Change
Income
Revenue from Operations 65,091.63 59,807.96 5,283.67 8.834393
Other Income 3,518.07 2,220.68 1,297.39 58.4231
Total Revenue 68,609.70 62,028.64 6,581.06 10.60971
Expenses
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Cost of Material Consumed 20,936.80 18,968.94 1,967.86 10.37412
Purchase of Stock-in-Trade 3,396.10 3,137.25 258.85 8.250857
Change in Inventories of FinishedGoods/Work-in-progress/ stock-in-trade -3,054.62 -1,584.39 -1,470.23 92.7947
Employee Benefits Expense 13,823.92 12,022.99 1,800.93 14.97905Finance Costs 491.31 454.96 36.35 7.989713
Depreciaton and amortizationexpense 2,050.74 1,477.76 572.98 38.77355
Other Expenses 16,142.28 13,477.45 2,664.83 19.77251
Total Expenses 53,786.53 47,954.96 5,831.57 12.16051
Profit before exceptional itemsand taxes 14,823.17 14,073.68 749.49 5.325473
Exceptional items 0 -958.78 958.78 -100
Profit before tax 14,823.17 13,114.90 1,708.27 13.02541
Tax expenses
Current tax 3,860.12 4,188.00 -327.88 -7.82904
Excess Tax provision writtenback -669.8 -108.15 -561.65 519.325
Deferred tax 975.84 -334.21 1,310.05 391.984
Total 4,166.16 3,745.64 420.52 11.22692
Net Profit for the Year 10,657.01 9,369.26 1,287.75 13.74442
The revenue from operations increased by 8.8% and total revenue
increased by 10.6% indicating that sales are increasing and company is at
a stable position as far as sales is concerned. Cost of purchase of raw
materials went up by 10.37 % which is in line with the growth in sales.
Stock in trade grew by 8.25%.This was mostly due to purchase was coffee
this year which was missing last year.Depreciation went up by 38.77%
adding to the expenses. Other expenses went up by 19.77% . Fuel and
power ,repair of machinery and foreign exchange fluctuations led to thisrise.Overall the expenses increased by 12.16% indicating the companies
costs have gone up as well. There is a 5.3% increase in profit before tax
and exceptional items . Even though revenue increased by 10.6% the
profit before tax and exceptional items has increased just by 5.3%indicating the increase in expenses of the company.
This year there is no exceptional item .However, last year there was aprovision for Contractual Obligations for retired and continuingdirectors. As a result 958 lakhs were deducted from previous yearsprofit. As a result profit before tax increased by 13.02%.
8/10/2019 Fra G 6 Tatacoffee
21/22
Current tax expenses decreased by 7.8% .However,deffered tax paymentsincreased by 391.8% .As a result tax payments increased by 11.22%.As aresult the net profit for the year increased by 13.74%
8/10/2019 Fra G 6 Tatacoffee
22/22
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