INDEX

Acknowledgement ..................................................................................... 3
1.

Company Introduction: ....................................................................4

2.

SWOT snapshot: ............................................................................... 5

3.

SWOT - Analysis ............................................................................... 5

a.

Strengths ........................................................................................ 5

b.

Weakness ....................................................................................... 6

c.

Opportunity ................................................................................... 6

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: ................................................................. 10

iii.

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 ............................................................................. 12

i.

Inventory turnover ratio .............................................................. 12

ii.

Inventory holding period ............................................................. 12

iii. Debtor turnover ratio ................................................................... 13

iv.

Average collection period............................................................. 13

v.

Credit turnover ratio .................................................................... 13

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 ............................................................................... 15

ii.

Profit And Loss Statement ........................................................... 17

j.

Horizontal Analysis ........................................................................ 18

i.

Balance Sheet ................................................................................ 18

ii. Profit And Loss Statement ............................................................ 19

Acknowledgement
We 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 students
who 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.
1
2
3
4
5
6
7

Roll No.
140102065
140101026
140103066
140101139
140101144
140103166
140103169

Name
Krishna Ravi Shankar Karanam
Ankush Kunzru
Harneet Singh Bahri
Saiyam Arora
Sanchita Krishna
Sudheshna Sampathkumar
Suneet Raj Gantayat

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

Weather dependence

Brand value

Major environmental
challenges in Brazil

Strong presence

Price-demand fluctuations

Exclusive partnerships

Fall in harvested crop

Largest integrated coffee

business in the world

Threats
Opportunities

Dumping in international
market

New markets exploration

ForEx loss

Market competition
consolidation

Workforce issues

No significant competitor
in India

Crop diseases

Potential for growth with

introduction of state of the
art machinery
Rain water harvesting
Weakness
a.

Strengths

3.

SWOT - Analysis

 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 deficit
situation 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%

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 coffee
business 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

4.

Financial Statements
i.

Balance Sheet
Particulars

Liabilities
Equity And Liabilities
Share Capital
Reserves And Surplus
Non Current Liabilities
Long Term Borrowings
Deferred Tax liability
Other Long Term Borrowings
Long Term Provisions
Current Liabilities
Short Term Borrowings
Trade Payables
Other Current Liabilities
Short Term Provisions
Total Liability
Assets
Non Current Assets
Fixed Assets
Capital Work In Progress
Non Current Investments
Long Term Loans And Advances
Other Non Current Asset
Current Assets
Inventories
Trade Receivables
Cash And Bank Balances
Short Term Loans And Advances
Other Non Current Assets
Total Asset

ii.

31-Mar-13 (In
lakhs)

31-Mar-12
(In lakhs)

1867.7
50577.64
52445.34

1867.7
43858.02
45725.72

4411.87
721.79
168.2
2390.48
7692.34

2416.8
1056
149.02
1521.1
5142.92

5530.66
2913.73
6814.42
4431.62
19690.43
79828.11

1662.27
1237.8
6811.41
5086.13
14797.61
65666.25

24211.9
5384.29
14563.44
1999.76
8.49
46168.5

22912.36
228.67
14564.09
4180.77
19.03
41904.94

15920.44
4959.95
2655.33
10189.22
234.67
33659.61
79828.11

12395.28
4434.72
1407.05
5416.91
107.35
23761.31
65666.25

Profit And Loss Statement

Particulars

Income
Revenue from Operations
Other Income
Total Revenue

FY2013-14
(in lakhs)

FY2012-13
(in lakhs)

65,091.63
3,518.07
68,609.70

59,807.96
2,220.68
62,028.64

20,936.80
3,396.10

18,968.94
3,137.25

Expenses
Cost of Material Consumed
Purchase of Stock-in-Trade
Change in Inventories of Finished
Goods/Work-in-progress/ stock-intrade
Employee Benefits Expense
Finance Costs
Depreciaton and amortization
expense
Other Expenses
Total Expenses

-3,054.62
13,823.92
491.31

-1,584.39
12,022.99
454.96

2,050.74
16,142.28
53,786.53

1,477.76
13,477.45
47,954.96

Profit before exceptional items and

taxes
Exceptional items
Profit before tax

14,823.17
0
14,823.17

14,073.68
-958.78
13,114.90

3,860.12
-669.8
975.84
4,166.16

4,188.00
-108.15
-334.21
3,745.64

10,657.01

9,369.26

Tax expenses
Current tax
Excess Tax provision written back
Deferred tax
Total
Net Profit for the Year

5.

Ratio Analysis
Ratio analysis is a tool which helps in making comparisons and
draw relationships between components of financial statements.

a.

Profitability ratio
i.

Net Profit Ratio:

Ratio

Formula

2013

2012

Net Profit ratio

PAT/Net
16.37%
15.67%
revenue from
Ops
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:

Ratio

Formula

Operating profit
ratio

EBIT/Net
revenue from
Operations

2013

23.53%

2012

22.68%

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.
Ratio

Return on equity
Formula

2013

2012

Return on
PAT/Shareholders 17.65%
17.87%
equity
fund
RoE indicates the profits generated as a result of the shareholders funds
that have been invested. The increase in this ratio indicates better
returns for the shareholders of the business on their capital invested.

Ratio

Return on

Formula

2013

EBIT/Shareholders 24.01%

2012

23.87%

capital
fund + Long term
employed
borrowings
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

Ratio

Formula

2013

2012

Return on total
PAT/Total
12.06%
11.74%
assets
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

Ratio

Formula

Current ratio

Current
Assets/Current
Liabilities

2013

2.01:1

2012

1.71:1

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.
Ratio

Liquid ratio
Formula

2013

2012

Return on total
PAT/Total
1.03:1
0.9:1
assets
Assets
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 of
better cash balance.

c.

Solvency Ratio
i.

Debt Equity ratio

Ratio

Formula

2013

2012

Return on total
PAT/Owners
5.58:1
8.41:1
assets
Equity
This ratio has improved as firm has a larger equity reserves and surplus
base in comparison to the previous year.

ii.

Operating coverage

Ratio

Formula

Interest
coverage ratio

EBIT/Interest
obligation

2013

31.17:1

2012

29.82:1

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

Ratio

Formula

Inventory
turnover ratio

COGS/Avg.
Inventory

2013

1.08:1

2012

1.29:1

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

Inventory
holding period

Formula

365/ITR

2013

338.2 days

2012

283.1 days

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

Ratio

Formula

Debtor turnover
ratio

2013

Credit sales/Avg 10.38083

debtors

2012

12.50593

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 previous
year
iv.

Average collection period

Ratio

Formula

Avg collection
period

365/debtor
turnover ratio

2013

35.16097

2012

29.18616

Average collection period increased from29.186 to 35.16 days indicating

more repayment time is being allowed to the debtors

v.

Credit turnover ratio

Ratio

Credit turnover
ratio

Formula

Credit
purchase/Avg.
creditors

2013

10.2209

2012

7.586904

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 get
credit for a longer term.
The ratio improved significantly indicating it is paying back its creditors
faster.

vi.

Average payment period

Ratio

Formula

Average
payment period

365/credit
turnover ratio

2013

35.71114

2012

48.10922

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 term
credit 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 days
for payment period.

e. Investment valuation ratios

i.

Dividend yield ratio

Ratio

Formula

Dividend yield
ratio

Dividend per
share/Market
price per share

2013

1.45

2012

1.25

*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 more
attractive for investment purpose.
ii.
Ratio

Dividend payout ratio

Formula

Dividend payout Dividend per

ratio
share/Earnings
per share

2013

22.783

2012

24.9203

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 dividend
as it did in the previous year.

iii.

Price earnings ratio

Ratio

Price earnings
ratio

Formula

2013

Market price of
share/Earnings
per share

2012

16.01823

20.17544

*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 FY13-14
indicating that stock is more attractively priced to invest in.

6.

Vertical Analysis
i. Balance Sheet
Particulars

Equity And Liabilities

Share Capital
Reserves And Surplus
Non Current Liabilities
Long Term Borrowings
Deferred Tax liability
Other Long Term Borrowings
Long Term Provisions
Current Liabilities
Short Term Borrowings
Trade Payabales
Other Current Liab
Short Term Provisions
Total Liabilities

31-Mar-13
(in lakhs) Percentage
Liabilities

31-Mar-12
(in lakhs)

1867.7
50577.64
52445.34

2.34%
63.36%
65.70%

1867.7
43858.02
45725.72

2.84%
66.79%
69.63%

4411.87
721.79

5.53%
0.90%

2416.8
1056

3.68%
1.61%

168.2
2390.48
7692.34

0.21%
2.99%
9.64%

149.02
1521.1
5142.92

0.23%
2.32%
7.83%

5530.66
2913.73
6814.42
4431.62
19690.43
79828.11

6.93%
3.65%
8.54%
5.55%
24.67%
100.00%

1662.27
1237.8
6811.41
5086.13
14797.61
65666.25

2.53%
1.88%
10.37%
7.75%
22.53%
100.00%

30.33%
6.74%

22912.36
228.67

34.89%
0.35%

Percentage

Assets
Non Current Assets
Fixed Assets
Capital Work In Progress

24211.9
5384.29

Non Current Investments

Long Term Loans And
Advances
Other Non Current Asset
Current Assets
Inventories
Trade Receivables
Cash And Bank Balances
Short Term Loans And
Advances
Other Non Current Assets
Total Asset

14563.44

18.24%

14564.09

22.18%

1999.76
8.49
46168.5

2.51%
0.01%
57.83%

4180.77
19.03
41904.94

6.37%
0.03%
63.82%

15920.44
4959.95
2655.33

19.94%
6.21%
3.33%

12395.28
4434.72
1407.05

18.88%
6.75%
2.14%

10189.22
234.67
33659.61
79828.11

12.76%
0.29%
42.17%
100.00%

5416.91
107.35
23761.31
65666.25

8.25%
0.16%
36.18%
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 have
only 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 from
22.1% 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 have
gone up from 8.25% to 12.76%.

ii.

Profit And Loss Statement

Particulars

FY2013-14
(in lakhs)

FY2012-13
Percentage (in lakhs)

Percentage

Income
Revenue from Operations
Other Income
Total Revenue

65,091.63
3,518.07
68,609.70

94.87 59,807.96
5.13
2,220.68
100.00 62,028.64

96.41991
3.580088
100.00

20,936.80
3,396.10

30.52 18,968.94
4.95
3,137.25

30.58094
5.057744

Expenses
Cost of Material Consumed
Purchase of Stock-in-Trade
Change in Inventories of
Finished Goods/Work-inprogress/ stock-in-trade
Employee Benefits Expense
Finance Costs
Depreciaton and amortization
expense
Other Expenses
Total Expenses

-3,054.62
13,823.92
491.31

-4.45 -1,584.39
20.15 12,022.99
0.72
454.96

-2.55429
19.38297
0.733468

2,050.74
16,142.28
53,786.53

2.99
1,477.76
23.52769 13,477.45
78.39 47,954.96

2.382383
21.72779
77.31

Profit before exceptional

items and taxes
Exceptional items
Profit before tax

14,823.17
0
14,823.17

21.61 14,073.68
0
-958.78
21.61 13,114.90

22.689
-1.54571
21.1433

Tax expenses
Current tax
Excess Tax provision written
back
Deferred tax
Total
Net Profit for the Year

3,860.12

5.63

4,188.00

6.75172

-669.8
975.84
4,166.16

-0.97625
1.422306
6.07

-108.15
-334.21
3,745.64

-0.17435
-0.5388
6.038565

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

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 to
revenues was in line with previous year.

j.

Horizontal Analysis
i. Balance Sheet
Particulars

Equity And Liabilities

Share Capital
Reserves And Surplus
Non Current Liabilities
Long Term Borrowings
Deferred Tax liability
Other Long Term Borrowings
Long Term Provisions
Current Liabilities
Short Term Borrowings
Trade Payables
Other Current Liabilities
Short Term Provisions
Total Liability

31-Mar-13
(in lakhs)
Liabilities

31-Mar-12
(in lakhs)

Change
YoY

% change
YoY

1867.7
50577.64
52445.34

1867.7
43858.02
45725.72

0
6719.62
6719.62

0.00%
15.32%
14.70%

4411.87
721.79
168.2
2390.48
7692.34

2416.8
1056
149.02
1521.1
5142.92

1995.07
-334.21
19.18
869.38
2549.42

82.55%
-31.65%
12.87%
57.15%
49.57%

5530.66
2913.73
6814.42
4431.62
19690.43
79828.11

1662.27
1237.8
6811.41
5086.13
14797.61
65666.25

3868.39
1675.93
3.01
-654.51
4892.82
14161.86

232.72%
135.40%
0.04%
-12.87%
33.06%
21.57%

24211.9
5384.29
14563.44

22912.36
228.67
14564.09

1299.54
5155.62
-0.65

5.67%
2254.61%
0.00%

1999.76
8.49
46168.5

4180.77
19.03
41904.94

-2181.01
-10.54
4263.56

-52.17%
-55.39%
10.17%

15920.44

12395.28

3525.16

28.44%

Assets
Non Current Assets
Fixed Assets
Capital Work In Progress
Non Current Investments
Long Term Loans And
Advances
Other Non Current Asset
Current Assets
Inventories

Trade Receivables
Cash And Bank Balances
Short Term Loans And
Advances
Other Non Current Assets
Total Asset

4959.95
2655.33

4434.72
1407.05

525.23
1248.28

11.84%
88.72%

10189.22
234.67
33659.61
79828.11

5416.91
107.35
23761.31
65666.25

4772.31
127.32
9898.3
14161.86

88.10%
118.60%
41.66%
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 by
57.15%.However there is a decrease of deferred tax liabilities by 31.65%.
Current liabilities have gone up by 33.06%.The reason being short term
borrowings 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% in
liabilities.
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 advances
and 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 position
of company.As a result of this total assets have increased by 21.57%.

ii.

Profit And Loss Statement

Particulars
Income
Revenue from Operations
Other Income
Total Revenue
Expenses

FY2013-14
65,091.63
3,518.07
68,609.70

FY2012-13
59,807.96
2,220.68
62,028.64

Change
5,283.67
1,297.39
6,581.06

%Change
8.834393
58.4231
10.60971

Cost of Material Consumed

Purchase of Stock-in-Trade
Change in Inventories of Finished
Goods/Work-in-progress/ stockin-trade
Employee Benefits Expense
Finance Costs
Depreciaton and amortization
expense
Other Expenses
Total Expenses
Profit before exceptional items
and taxes
Exceptional items
Profit before tax
Tax expenses
Current tax
Excess Tax provision written
back
Deferred tax
Total
Net Profit for the Year

20,936.80
3,396.10

18,968.94
3,137.25

1,967.86
258.85

10.37412
8.250857

-3,054.62
13,823.92
491.31

-1,584.39
12,022.99
454.96

-1,470.23
1,800.93
36.35

92.7947
14.97905
7.989713

2,050.74
16,142.28
53,786.53

1,477.76
13,477.45
47,954.96

572.98
2,664.83
5,831.57

38.77355
19.77251
12.16051

14,823.17
0
14,823.17

14,073.68
-958.78
13,114.90

749.49
958.78
1,708.27

5.325473
-100
13.02541

3,860.12

4,188.00

-327.88

-7.82904

-669.8
975.84
4,166.16

-108.15
-334.21
3,745.64

-561.65
1,310.05
420.52

519.325
391.984
11.22692

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 this
rise.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 a
provision for Contractual Obligations for retired and continuing
directors. As a result 958 lakhs were deducted from previous years
profit. As a result profit before tax increased by 13.02%.

Current tax expenses decreased by 7.8% .However,deffered tax payments

increased by 391.8% .As a result tax payments increased by 11.22%.As a
result the net profit for the year increased by 13.74%