the soft drink industry comp and all (1) (2) (3) final

8/11/2019 The Soft Drink Industry Comp and All (1) (2) (3) Final

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THE SOFT DRINK INDUSTRY

The carbonated soft drinks industry in India comprises over 100 plants across allstates. It provides direct and indirect employment for over 1,25,000 employees. Ithas attracted one of the highest foreign direct investments in the countryamounting to around 1049 US $ Million.

Soft drinks constitute the third largest packaged food segment in India afterpackaged tea and packaged biscuits. But the penetration level of carbonated softdrinks in India is still low compared with other developing markets, an indication

for further potential for rapid growth.

India has 850 million potential customers, 150 million of whom comprise themiddle class with disposable income to spend on cars, vcrs and computers. Also,the Indian middle class is growing at 10% per year

Soft drinks are become part and parcel of the Indian lifestyle. Be it children, thecollege kid or the middle aged Indian soft drinks are enjoyed by one and all in thecountry. Especially after the influx of a number of fast food joints in India soft

drinks have gained more popularity. Food like pizzas burgers and French fries gohand in hand with soft drinks.

Gone are the days when a soft drink was enjoyed to the combat a sunny day.Today soft drinks are enjoyed with almost every meal that one has outside his/herhome. Despite several issues that crept up regarding the ingredients used behindthe manufacturing of soft drinks the market remained stable.

The soft drink industry in India is categorized on the basis of carbonated and noncarbonated drinks. The carbonated drinks include flavors like cola, lemon and

orange and the non carbonated drinks segment includes mostly mango flavors. Thenon carbonated segment includes fruit juices and squashes. The Top Soft DrinkBrands in India are Coca-Cola, Pepsi and Thums Up. The other popular soft drink

brands in India include Fanta, Mirinda,7Up, Sprite Limca,Frooti,Appy Fizz, etc. Inorder to cater to all the segments of the society these top soft drink brands areavailable in numerous sizes.


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Starting from the age old 300 ml glass bottles to the 200 ml ones to 500 ml ,1litreand 2 litre plastic bottles soft drinks are available in almost every size desired bythe consumer. The carbonated drinks account for almost 80% of the total sales ofthe soft drinks market in India.

Soft drinks do not only rule the urban markets they have successfully managed topenetrate the rural areas as well. Rural areas account for almost 75% sales of Petbottles whereas the sales of 300 ml and 200ml bottles are higher in the rural areas.

Based on consumption patterns the soft drink market in India is classified into twosegments. The first is On premise which means the place where the soft drink was

bought and consumed. This includes places like railway stations, stand aloneshops, restaurants and cinemas. The other one being In-House consumption whichmeans soft drinks purchased and consumed at home. However in India the former

beats the latter hollow. Outdoor consumption accounts for almost 80% of the totalsales of soft drinks and indoor consumption accounts for the remaining 20% of thesales of the soft drinks market.

However the soft drinks market in India is still in its nascent stage as compared tocountries like the USA. According to a report published in 2000 the per capitaconsumption of soft drinks in India was 5 bottles annually as compared to USAwhose per capita consumption per annum stood at 800 bottles. Delhi happens to bethe highest soft drink consuming region in India.

Top players in the soft drinks industry in

India:

The soft drinks industry in India is dominated by some of the top players and thenames of these top players are given below:

COCO-COLA INDIA

PEPSICO INDIA

PARLE AGRO


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SALES VOLUME OF NON ALCOHOLIC DRINKS IN

INDIA

Litres (million) 2009 2010 2011 2012 2013 Annual

Growth

Rate

(2009-

2013)

Bottled Water

3.290 3.885 4.515 5.169 5.825 14.5 %Carbonated Soft

Drinks 1.323 1.430 1.536 1.639 1.738 6.7%Juice

(Fruit/Vegetable) 456 538 623 709 796 14.9%

MARKET SHARE OF SOFT DRINK COMPANIES IN

INDIA


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PARLE AGRO COMPANY


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Parle agro

INTRODUCTIONParle Agro is an Indian company in the beverages industry and has brands like

Frooti, consistent winner of India's fruit beverage brand, Appy, Appy Fizz and

packaged drinking water, Bailey.

A pioneer in the Indian industry, Parle Agro is associated with many firsts. They

were the first to introduce fruit drinks in tetra packaging, first to introduce apple

nectar and the first to introduce fruit drinks in PET bottles.

Recent beverage products from Parle Agro include Saint Juice, LMN and Grappo

Fizz.

HISTORY

In the 1950s the undivided Chauhan, the owners of Parle family manufactured

beverages, water, confectionery, biscuits, etc. under its registered brand name

Parle.

Over the years, the group split into three different companiesParle Agro, Parle

Bisleri and Parle Products. Currently, all three are separate companies with

separate ownership and management. They also have different products

manufactured under them. All three companies continue to use the family

trademark nameParle under which the current companies are named.

Parle Agro commenced operations in 1984. Starting with only beverages and

diversifying to include bottled water in 1993 and confectionery in 2007. Frooti wasthe first product that was rolled out of Parle Agro in 1985. It went on to become

Indias favourite mango drink. Itstill has a leading market share.

Mr. Prakash Chauhan is the Executive Chairman of Parle Agro.


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products

1. Frooti:Launched in 1985 as a mango drink, Frooti is the first beverage to be

launched in tetra packaging in India. Frooti is Indias favorite Mango drink and

is ranked amongst the most trusted brands in numerous national surveys.

2. Appy Classic: Launched in 1986 as an apple nectar and originally available in a

white tetra pack with an apple and leaf graphic, today it comes in black tetra

packaging. Appy remains the first apple nectar to be launched in India.

3. Appy Fizz:Launched in 2005, Appy Fizz is Indias firstsparkling apple drink

available in a champagne shaped PET bottle. Considered the Champagne of

Fruit drinks, Appy Fizz is a one of a kind product in the beverage

market.Recently, Appy Fizz has been given a makeover in terms of a new

packaging.

4. Saint Juice: Launched in 2008, Saint Juice is available in three variants

Orange, Mixed fruit, Grape and Apple. Saint Juice is 100% juice with no added

color, sugar or preservative.

5. LMN:Launched in 2009, LMN is a fresh take on nimbu pani. It contains real

lemon juice and has no artificial flavors or preservatives. LMN works as an

Emergency Lemon Refresher, and tastes closest to authentic nimbu pani.

6. Grappo Fizz: Launched in 2008, Grappo Fizz is a sparkling grape juice drink.Credited with creating the sparkling fruit drinks category in India, Grappo Fizz

is along the lines of existing product Appy Fizz. It is purple-red in color and has

no close competition in the market


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Balance sheet of parle agro

SOURCES OF FUNDS mar 11 mar10 mar09 mar08 mar07

Owner's fund

Equity share capital 39.94 39.94 39.94 39.94 39.94Share application money - - - - -

Preference share capital - - - - -

Reserves & surplus 2,916.12 3,425.08 3,760.81 2,946.30 2,430.12

Loan funds

Secured loans 1,458.45 - - - -

Unsecured loans 32.71 66.03 78.49 132.00 165.17

Total 4,447.22 3,531.05 3,879.24 3,118.24 2,635.23

Uses of funds

Fixed assets

Gross block 5,538.46 2,750.98 2,516.27 1,938.78 1,800.63

Less : revaluation reserve - - - - -

Less : accumulated depreciation 1,458.18 1,092.20 942.56 782.52 635.10

Net block 4,080.28 1,658.78 1,573.71 1,156.26 1,165.53

Capital work-in-progress 125.14 48.14 120.54 408.49 189.92Investments 5,128.75 3,925.71 3,368.75 2,566.82 1,973.87

Net current assets

Current assets, loans & advances 1,510.52 2,890.46 1,022.14 942.00 914.65

Less : current liabilities &

provisions

6,397.47 4,992.04 2,205.90 1,955.33 1,608.74

Total net current assets -

4,886.95

-

2,101.58

-

1,183.76

-

1,013.33

-694.09

Miscellaneous expenses not

written

- - - - -

Total 4,447.22 3,531.05 3,879.24 3,118.24 2,635.23


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PROFIT AND LOSS ACCOUNT OF PARLE AGRO

Mar11 Mar10 Mar09 Mar08 Mar07

Income

Operating income 19,242.09 15,839.58 12,325.38 10,345.01 9,905.95

Expenses

Material consumed 14,195.94 10,834.53 8,820.05 7,479.50 7,252.46

Manufacturing expenses 142.29 535.41 427.78 360.66 332.62

Personnel expenses 618.95 560.32 448.65 383.45 353.81

Selling expenses - 760.41 582.16 503.62 507.10

Adminstrative expenses 1,824.65 405.26 293.72 250.01 258.00

Expenses capitalised - - - - -

Cost of sales 16,781.83 13,095.93 10,572.36 8,977.24 8,703.99Operating profit 2,460.26 2,743.65 1,753.02 1,367.77 1,201.96

Other recurring income 424.87 98.77 108.56 88.85 83.73

Adjusted PBDIT 2,885.13 2,842.42 1,861.58 1,456.62 1,285.69

Financial expenses -1.85 11.14 13.04 13.47 13.76

Depreciation 402.38 191.47 180.66 160.32 139.78

Other write offs - - - - -

Adjusted PBT 2,484.60 2,639.81 1,667.88 1,282.83 1,132.15

Tax charges 476.86 599.90 499.70 442.40 388.21

Adjusted PAT 2,007.74 2,039.91 1,168.18 840.43 743.94

Non recurring items -79.84 191.92 113.58 127.45 113.95

Other non cash adjustments - - - - -

Reported net profit 1,927.90 2,231.83 1,281.76 967.88 857.89

Earnigs before appropriation 4,074.45 4,939.11 3,303.53 2,562.66 2,081.94

Equity dividend 2,096.72 2,196.56 399.38 379.41 339.47

Preference dividend - - - - -

Dividend tax 340.14 371.00 67.87 64.48 57.69

Retained earnings 1,637.59 2,371.55 2,836.28 2,118.77 1,684.78


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PARLE AGRO- RATIO ANALYSIS AND

COMMENTS

LIQUIDITY RATIOS:

1)

CURRENT RATIO= CURRENT ASSETS

CURRENT LI ABI LI TES

2011 2010.

1,510.526,397.47

2,890.464,992.04

0.24 : 1 0.59

COMMENTS: Current ratio indicates the short term solvency position.The short

term solvency position of parle agro in both the year is not satisfactory it was 0.24

and 0.59 in 2011 and 2010 respectively which is even even close to the standard

current ratio 2:1. Since we know that company is strong but it need to improve its

figure

2) PROPRIETOR RATIO = PROPREITORS FUNDS X 100

TOTAL ASSETS

2011 2010

4,447.22X10010844.69

3,531.05 x 1008522.51

41% 41.43%


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COMMENTS: The proprietory ratio indicates the proprietors stakes in the

business.proprietors share in investment in total assets is 41% and 41.43% which

is almost similar in both the years . And is close to the standard ratio.Hence

company indicates a sound and satisfactory long term solvency position.It also

indicates that company reliesmore on owned funds then on borrowed funds.

3) DEBT EQUITY RATIO = DEBT

EQUITY

COMMENTS: Debt -equity indicates the long term borrowing as a proportion to

owned funds. Its 0.50:1 in 2011 and 0.02 in 2010, both the ratio are lower hence

more secured are the creditors and they suffer less than the owner. Hence, the ratio

is satisfactory it should be lower, so that creditors enjoy higher degree of safety.

4) CAPI TAL GEARING RATIO :

= F IXED INCOME BEARING SECURITIES X 100

NON-FI XED I NCOME BEARING SECURITIES

2011 2010

1491.16 x1004,447.22

66.03 x1003,531.05

0.34 1.87COMMENTS: This ratio has reduced from 1.87 to 0.34 this year. It shows that

funds bearing fixed return has decreased. It is not that great. It a sign of low

gearing.

2011 2010

1491.16

2956.06

66.03

3465.020.50 :1 0.02:1


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MANAGEMENT EFFICIENCY RATIOS:

1) GROSS PROFIT RATI O = GROSS PROFIT x 100NET SALES

2011 2010

4284.91 x 10019,242.09

3909.32 x 10015,839.58

22.27% 24.68%

COMMENTS: This is a profitability ratio. It is useful for intra-firm comparison tofind out the % of profit after deducting direct expenses.This year gross profit ratio

has decreased from 24.68% to 22.27% compared to last year. It shows that this

year there have been higher direct expenses by the company.

2) NET PROFI T RATIO = NPBT x 100

NET SALES

2011 2010

2,484.60x 10019,242.09

2,639.81 x 10015,839.58

12.91% 16.67%

COMMENTS: Its the main test of profitability & operational efficiency. The

profit has decreased from 16.67% to 12.91%


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3) NET PROFI T RATIO = NPAT X 100

NET SALES

2011 2010

2,007.74x 10019,242.09

2,039.91 x 10015,839.58

10.43% 10.45%

COMMENTS: Its the main test of profitability & operational efficiency.NPR of

Coca cola is 10.45% which is better compared to Parle agro which is 10.43%

4) NET PROFI T RATIO =OPERATI NG NET PROFI T x 100

NET SALES

2011 2010

2,460.26x 10019,242.09

2,743.65 x 10015,839.58

12.79% 20.88%

COMMENTS: Its the main test ofprofitability & operational efficiency. It had

decreased from 20.88% to 12.79 %

5) OPERATING RATIO = OPERATING COST x 100

NET SALES

2011 2010

1,824.65x 10019,242.09

1165.67x 10015,839.58

9.48% 7.36


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COMMENTS: Operating ratio is 9.48% resulting in a return of 90.52% on long

term capital employed and 7.36% resulting in a return of 92.64% on long term

capital employed in 2011 and 2010 respectively

6) EXPENSE RATI O = OPERATING EXPENSES x 100

NET SALES

2011 2010

1,824.65x 10019,242.09

1165.67x 10015,839.58

9.48% 7.36%

COMMENTS: It shows the portion of revenue used up by various items of

expenditure. In 2010 the company was more efficient in controlling its overall

operational costs as indicated by its lower ratio of operational expenses. But this

year it has increased to 9.48 when compared to previous year.


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PROFITABILITY RATIOS:

1)

RETURNS ON CAPITAL EMPLOYED := NET PROFI T B4 INTEREST & TAX x 100

CAPITAL EMPLOYED

2011 2010

2,885.13x 1004,447.22

2,842.42x 1003,531.05

64.87% 80.50%

COMMENTS: It indicates the earning capacity and optimum utilization of funds

and capital structure planning . utilization of funds is better in the year 2010 when

compared to 2011.It had decreased to from 80.50% to 64.87% in 2011

2) RETURN ON PROPRIETORS FUND = NET PROFI T AFTER TAX x 100

PROPRIETORS FUND

2009 2010

2,007.74x 1004,447.22

2,039.91x 1003,531.05

45.15% 57.77%

COMMENTS:It indicates the earning capacity and optimum utilization of assets.

In 2011 it was 45.15% and In 2010 it was 57.77% Comparing both the years it

signifies a better utilization of shareholders funds or higher productivity of owners

funds in year 2010 compared to the yr 2011.


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Trend analysis of balance sheet- parle

AGRO

Particulars Rs (in crs) % base year

2009 2010 2011 2009 2010 2011

A)Sources of funds

1.Shareholders fund

a) Equity share capital 39.94 39.94 39.94 100 100 100

b) Reserves/

surplus

3760.81 3425.08 2916.12 100 91.07293 77.53968

NETWORTH 3800.75 3465.02 2956.06 100 91.16674 77.7757

a) Secured

loans

0 0 1458.45

b) Unsecured

loans

78.49 66.03 32.71 100 84.12537 41.6741

OWED FUNDS 78.49 66.03 1491.16 100 84.12537 1899.809

TOTAL FUNDS 3879.24 3531.05 4447.22 100 91.02427 114.6415

B)Application of funds

1. Fixed asset

a) Gross block 5538.46 2750.98 5538.46 100 109.3277 220.106

b) less

depreciation

942.6 1092.3 1458.18 100 115.8865 154.7042

c) Capital work

In progress

120.5 48.14 125.14 100 39.93695 103.8162

2. Investment 5128.75 3925.71 5128.75 100 116.5331 152.2449

3. Current assets, loans,

advances

1510.52 2890.46 1510.52 100 282.7851 147.7801

(-) Current liabilities and

provisions

6397.47 4992.04 6397.47 100 226.304 290.0163

Net current assets -4886.95 -2101.58

-4886.95 100 177.5343 412.8328


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Comparative statement of balance

sheet- parle agro

Particulars 2010 2011 Incr/Decr

(Rs)

Incr/decr

(%)

A)Sources of funds

1.Shareholders fund

a) Equity share capital 39.94 39.94 0 0

b) Reserves/ surplus 3425.08 2916.12 -508.96 -14.8597989

NETWORTH 3465.02 2956.06 -508.96 -14.68851551

a) Secured loans 0 1458.45 1458.45 0

b) Unsecured loans 66.03 32.71 -33.32 -50.46191125

OWED FUNDS 66.03 1491.16 1425.13 2158.30683

TOTal funds 3531.05 4447.22 916.17 25.94610668


1. Fixed asset

a) Gross block 2750.98 5538.46 2787.48 101.3267999

b) less depreciation 1092.3 1458.18 365.88 33.49629223

c) Capital work inprogress

48.14 125.14 77 159.9501454

2. Investment 3925.71 5128.75 1203.04 30.64515718

3. Current assets, loans, advances 2890.46 1510.52 -1379.94 -47.74118998

(-) Current liabilities and provisions 4992.04 6397.47 1405.43 28.15342025

Net current assets -2101.58 -4886.95 -2785.37 132.5369484

TOTAL CAPITAL EMPLOYED 3531.05 4447.22 916.17 25.94610668


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Common size of balance sheet- parle

agro

Particulars 2010 % 2011 %

(in crs) (in crs)

A)Sources of funds

1.Shareholders fund 0

a) Equity share capital 39.94 1.131108311 39.94 0.898089143

c) Reserves/ surplus 3425.08 96.99890967 2916.12 65.57175044

NETWORTH 3465.02 98.13001798 2956.06 66.46983959

2.Borrowed funds

c) Secured loans 0 0 1458.45 32.79464474

d) Unsecured loans 66.03 1.869982017 32.71 0.73551567

OWED FUNDS 66.03 1.869982017 1491.16 33.53016041

TOTAL FUNDS 3531.05 100 4447.22 100


1. Fixed asset

d) Gross block 2750.98 77.90827091 5538.46 124.5375763

e) less depreciation 1092.3 30.9341414 1458.18 32.78857354

f) Capital work in progress 48.14 1.363333853 125.14 2.813892724

2. Investment 3925.71 111.1768454 5128.75 115.3248546

3. Current assets, loans, advances 2890.46 81.85837074 1510.52 33.96548855

(-) Current liabilities and provisions 4992.04 141.3755115 6397.47 143.8532387

Net current assets -2101.58 -59.51714079 -4886.95 -109.8877501

TOTAL CAPITAL EMPLOYED 3531.05 100 4447.22 100


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Comment on balance sheet-

comparative statement of parle

agro.

1. SHARE CAPITALincludes RESERVES AND SHAREHOLDERS FUND

.Reserves have decreased by 508.96. equity share were same in the yr 2010 and

2011.reserve have decreased from 3,425.08 in 2010 to 2,916.12 in 2011.

2. OWNED OR BORROWED FUNDhave increase by 1425.13. companied

dependency on outside liability had increased in 2011 when compared to 2010.

3. FIXED ASSETS of the company have increased by 2498.6

4. INVESTMENTS of the company has increased by 1203.04. it means company

made more investment in 2011 compared to 2010.

5. CURRENT ASSETSof the company has reduced by 1379.94

6. CURRENT LIABILITIES of the company has increased by 1405.43. it was

4,992.04 in 2010 and it had increased to 6,397.47 in 2011.


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Comment on balance sheet trend of

parle agro company

1. Company issued same number of shares in all three years, whereas

RESERVESof the company has decreased from 100% in 2009 to 91% in 2010

to 77% in 2011.

2. SHARE HOLDERS FUNDhave decreased from 100% in 2009 to 91% 2010.

But it has increased to 114% in 2011.

3. Company issued DEBENTURES In 2009 is100% it decreased to 84% in 2010.

However in 2011 it increased to 1889% .it shows that the company took more

secured loan.

4. Due to decrease in loan funds and shareholder fund NET WORTHof businesswent down from 100% in 2009 to 91% in 2010.however it increased by 114%.

5. These sources were used for buying assets like building, machinery

etc.TOTAL FIXED ASSETS increased from 100% in 2009 to 109% in 2010

to 220% in 2011.

6. CURRENT ASSET increased from 100% in 2009 to 282% in 2010 and it

decreased to 147 in 2011.


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Trend analysis of profit and loss account -

parle agro

Particulars Rs in crs % Base year

2010 2011 2010 2011

INCOME

Operating income 15,839.58 19,242.09 100 121.481062

EXPENSES

Material consumed 10,834.53 14,195.94 100 131.0249729

Manufacturing expenses 535.41 142.29 100 26.57589511

Personnel expenses 560.32 618.95 100 110.4636636

Selling expenses 760.41 -

Adminstrative expenses 405.26 1,824.65 100 450.2418201

Expenses capitalised - -

Cost of sales 13,095.93 16,781.83 100 128.1453856

Operating profit 2,743.65 2,460.26 100 89.67105863

Other recurring income 98.77 424.87 100 430.1609801

Adjusted PBDIT 2,842.42 2,885.13 100 101.5025929

Financial expenses 11.14 -1.85 100 -

16.60682226

Depreciation 191.47 402.38 100 210.1530266

Other write offs - -

Adjusted PBT 2,639.81 2,484.60 100 94.12041018

Tax charges 599.9 476.86 100 79.48991499

Adjusted PAT 2,039.91 2,007.74 100 98.42296964

Non recurring items 191.92 -79.84 100 -

41.60066694

Other non cash adjustments - -

Reported net profit 2,231.83 1,927.90 100 86.3820273

Earnigs before appropriation 4,939.11 4,074.45 100 82.49360715

Equity dividend 2,196.56 2,096.72 100 95.454711

Preference dividend - -

Dividend tax 371 340.14 100 91.6819407

RETAINED EARNINGS 2,371.55 1,637.59 100 69.05146423


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Comparative statement of profit and lossaccount

Particulars Mar ' 10(in crs)

Mar ' 11(in crs)

Incr/Decr(Rs)

Incr/Decr(%)

Income

Operating income 15,839.58 19,242.09 3,402.51 21.481062

Expenses 0.00

Material consumed 10,834.53 14,195.94 3,361.41 31.02497293

Manufacturing expenses 535.41 142.29 -393.12 -73.42410489

Personnel expenses 560.32 618.95 58.63 10.46366362

Selling expenses760.41 -

Adminstrative expenses 405.26 1,824.65 1,419.39 350.2418201


Cost of sales 13,095.93 16,781.83 3,685.90 28.14538563

Operating profit 2,743.65 2,460.26 -283.39 -10.32894137

Other recurring income 98.77 424.87 326.10 330.1609801

Adjusted PBDIT 2,842.42 2,885.13 42.71 1.502592861

Financial expenses 11.14 -1.85 -12.99 -116.6068223

Depreciation 191.47 402.38 210.91 110.1530266

Other write offs - -Adjusted PBT 2,639.81 2,484.60 -155.21 -5.879589819

Tax charges 599.9 476.86 -123.04 -20.51008501

Adjusted PAT 2,039.91 2,007.74 -32.17 -1.577030359

Non recurring items 191.92 -79.84 -271.76 -141.6006669

Other non cash adjustments - -

Reported net profit 2,231.83 1,927.90 -303.93 -13.6179727

Earnigs before

appropriation

4,939.11 4,074.45 -864.66 -17.50639285

Equity dividend 2,196.56 2,096.72 -99.84 -4.545288997


Dividend tax 371 340.14 -30.86 -8.318059299

Retained earnings 2,371.55 1,637.59 -733.96 -30.94853577


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Common size of profit and loss account

Particulars 2010 % 2011 %

Income

Operating income 15,839.58 100 19,242.09 100

Expenses

Material consumed 10,834.53 68.40162429 14,195.94 73.77545786

Manufacturing expenses 535.41 3.380203263 142.29 0.739472687

Personnel expenses 560.32 3.537467534 618.95 3.216646425

Selling expenses760.41 4.800695473 -

Adminstrative expenses 405.26 2.558527436 1,824.65 9.482597784


Cost of sales 13,095.93 82.67851799 16,781.83 87.21417476

Operating profit 2,743.65 17.32148201 2,460.26 12.78582524

Other recurring income 98.77 0.623564514 424.87 2.20802418

Adjusted PBDIT 2,842.42 17.94504652 2,885.13 14.99384942

Financial expenses 11.14 0.070330148 -1.85 -0.00961434

Depreciation 191.47 1.208807304 402.38 2.091144985

Other write offs - -

Adjusted PBT 2,639.81 16.66590907 2,484.60 12.91231878

Tax charges 599.9 3.787347897 476.86 2.478213125

Adjusted PAT 2,039.91 12.87856117 2,007.74 10.43410565

Non recurring items 191.92 1.211648289 -79.84 -0.414923743

Other non cash

adjustments

- -

Reported net profit 2,231.83 14.09020946 1,927.90 10.01918191

Earnigs before

appropriation

4,939.11 31.1820768 4,074.45 21.17467489

Equity dividend 2,196.56 13.86753942 2,096.72 10.89652943


Dividend tax 371 2.342233822 340.14 1.767687398

Retained earnings 2,371.55 14.97230356 1,637.59 8.510458064


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THE COCA COLA COMPANY


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THE COCA- COLA COMPANY

INTRODUCTION

The Coca-Cola Company is the worlds largest beverage company. Along withCoca-Cola, recognized as the worlds most-valuable brand, the Company marketsfour of the worlds top five soft drink brands, including Diet Coke, Fanta andSprite and a wide range of other beverages, including water, juices and juicedrinks, tea, coffee and sports drinks. Through one of the worlds largest beverage

distribution system, consumers in more than 200 countries enjoy The Coca-ColaCompanys beverages at a rate exceeding 1.6 billion servings each day.

Coca-Cola in India is the countrys leading beverage Company with an unmatchedportfolio of beverages.

The Company manufactures and markets leading beverage brands like Coca-

Cola, Thumbs Up, Fanta, Fanta Apple, Limca, Sprite, Maaza, Minute Maid,

Burn, Kinley and Georgia range of tea coffee, Nestea and Fanta Fun Taste.

One of the early investors in India, the Coca-Cola system provides direct andindirect employment to more than 1, 50,000 people. The Coca-Cola System inIndia has more than 1 million retailers and the business has a multiplier effect onemployment and earning opportunities. Coca-Cola in India is the largestdomestic buyer of sugar and one of the top buyers of mango pulp.

The Coca-Cola System in India business also positively impacts industries likeGlass, Plastics, Resin Manufacturers, Sugar, Automobiles, White GoodsManufacturers, Banking etc.

The Coca-Cola Company has always placed high value on good citizenship. At the

heart of business is a mission statement called the Coca-Cola Promise - The Coca-

Cola Company exists to benefit and refresh everyone that it touches. This basic

proposition entails that the Companys business should refreshthe markets,

protect, preserve and enhance the environment and strengthen the community.


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HISTORY

1950 - Coca-Cola bottling plant opens in New Delhi

1958 - Concentrate plant opens in India

1973 - 22 bottling plants operate in 13 states

1977 - Coca-Cola and 38 other companies refuse to dilute stake,

formally withdraws from Country in 1978

1992 - Re-enters India

PRODUCTS

1. Coca-Cola:Coca-Cola is the most popular and highest-selling soft drink in

history, as well as the best-known product in the world.

2. Diet Coke: Diet Coke is theworld's third largest selling soft drink. Diet coke is

for those who want plenty of taste but no calories. Diet coke is also known as

coke lightin some countries.

3. Thums Up:Thums up is known for its strong, fizzy taste and its confident,

mature and uniquely masculine attitude. This brand clearly seeks to separate the

men from the boys.

4. Sprite :Sprite is the brand that gained most share in sparkling beverages in

year 2010.It is present in over 130 countries worldwide. In India, sprite is the

second largest brand of soft drinks.


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5. Fanta : Over the years, Fanta has occupied a strong market place and is

identified as the "the fun catalyst". Perceived as a fun youth brand, Fanta stands

for its vibrant color, tempting taste and tingling bubbles that not just uplifts

feelings but also helps free spirit thus encouraging one to indulge in the

moment.

6. Limca : Lime 'n' lemoni Limca can cast a tangy refreshing spell on anyone,

anywhere. Derived from 'Nimbu' + 'jaisa' hence Lime Sa, Limca has lived up to

its promise of refreshment and has been the original thirst choice of millions of

consumers for over 3 decade.

7. Maaza :Introduced in 1970s, Maaza has today come to symbolize the veryspirit of mangoes. Universally loved for its taste, color, thickness and

wholesome properties, Maaza is the mango lover's first choice.

8. Minute Maid Pulpy Orange : The history of the Minute Maid brand goes as

far back as 1945 when the Florida Food Corporation developed orange juice

powder. They branded it Minute Maid, a name connoting the convenience and

the ease of preparation (In a minute).

9. Minute Maid Nimbu Fresh: Launched first in South of India in January 2010,

Minute Maid Nimbu Fresh, started refreshing the whole of India by April 2010.

10.Kinley Water: Kinley water promises water that is as pure as it is meant to

be. Also, it comes with the assurance of safety.

11.Nestea : Lemony light refresher -Nestea Iced tea is a Part of the Beverage

Partners Worldwide (BPW) partnership between Nestle and Coca-Cola. It is

one of the largest selling ready-to-drink tea brand sold in over 60 countries.

12.Georgia Gold: Introduced in 2004, the GEORGIA range of Tea and Coffee

beverages is the perfect solution for your office and restaurant needs.


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Balance sheet of coca cola

company

SOURCES OF FUNDS Mar11 Mar10 Mar09 Mar08 Mar07

Owner's fund

Equity share capital 15.13 15.13 12.43 12.43 12.23

Share application money - - 0.70 - 0.20

Preference share capital - - - - -

Reserves & surplus 667.89 605.65 282.90 276.57 216.99

Loan funds

Secured loans 175.64 149.23 373.06 35.19 22.81Unsecured loans 53.74 104.02 67.02 - 0.36

Total 912.39 874.04 736.11 324.20 252.60

Uses of funds

Fixed assets

Gross block 796.96 763.46 706.44 105.73 68.59

Less : revaluation reserve - - - - -

Less : accumulated depreciation 314.52 202.62 93.87 27.91 21.79

Net block 482.44 560.85 612.58 77.82 46.80

Capital work-in-progress 6.48 6.21 36.70 13.47 34.49

Investments 7.08 62.08 39.89 102.97 78.18

Net current assets

Current assets, loans & advances 583.79 417.77 214.66 232.94 161.39

Less : current liabilities & provisions 167.40 172.87 167.72 103.01 68.27

Total net current assets 416.39 244.90 46.95 129.94 93.13

Miscellaneous expenses not written - - - - -

Total 912.39 874.04 736.11 324.20 252.60


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PROFIT AND LOSS ACCOUNT OF THE COCA

COLA COMPANY

Mar11 Mar10 Mar09 Mar08 Mar07

Income

Operating income 1,202.38 990.58 722.35 583.71 515.80

Expenses

Material consumed 512.98 383.39 309.59 248.65 226.20

Manufacturing expenses 6.09 8.33 5.16 2.55 2.14

Personnel expenses 65.94 55.81 44.69 31.18 21.95

Selling expenses - 257.23 184.61 177.03 173.27

Adminstrative expenses 366.29 43.82 42.58 28.28 25.92Expenses capitalised - - - - -

Cost of sales 951.30 748.58 586.64 487.69 449.48

Operating profit 251.08 242.00 135.71 96.02 66.32

Other recurring income 45.84 37.10 16.16 20.31 14.21

Adjusted PBDIT 296.92 279.10 151.87 116.33 80.52

Financial expenses 15.49 54.72 31.57 5.43 1.08

Depreciation 116.03 117.49 17.89 7.28 4.65

Other write offs - 4.87 - - -

Adjusted PBT 165.40 102.02 102.41 103.62 74.79

Tax charges 39.74 35.40 14.50 12.18 8.57

Adjusted PAT 125.66 66.62 87.91 91.44 66.22

Non recurring items - -3.53 -10.30 1.31 -0.30

Other non cash adjustments -0.26 0.22 0.26 - 0.01

Reported net profit 125.40 63.31 77.87 92.75 65.93

Earnigs before appropriation 139.23 87.94 94.35 104.65 70.48

Equity dividend 52.96 45.39 34.05 27.97 24.86

Preference dividend - - - - -

Dividend tax 8.80 7.71 5.79 4.75 3.67

Retained earnings 77.47 34.83 54.51 71.93 41.95


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The coca cola company-ratio

analysis and comments

LIQUIDITY RATIOS :

1)CURRENT RATI O= CURRENT ASSETS


2011 2010

583.79167.40

417.77172.87

3.48 : 1 2.42:1

COMMENTS:Current ratio indicates the short term solvency position.The short

term solvency position in 2010 and 2011is 2.42 and 3.48 which is satisfactory as is

not below the current ratio 2:1. Hence the solvency position of coco cola co. is

better.however in the yr 2011 is was more better compared to previous year.


TOTAL ASSETS

2011 2010

912.39X 1001079.79

874.04 x 1001046.91

84.50% 83.49%


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business.proprietors share in investment in total assets is 84.50% and 83.49%

which is almost similar in both the years . And is close to the standard ratio.Hence

company indicates a sound and satisfactory long term solvency position.It also

indicates that company relies more on owned funds then on borrowed funds


EQUITY

COMMENTS: Debt-equity indicates the long term borrowing as a proportion to

owned funds. Its 0.34:1 in 2011 and 0.41 in 2010, both the ratio are lower hence

more secured are the creditors and they suffer less than the owner. hence the ratio

is satisfactory it should be lower, so that creditors enjoy higher degree of safety

4)CAPI TAL GEARING RATIO :

= F I XED INCOME BEARING SECURITIES X 100

NON-FI XED I NCOME BEARING SECURITI ES

2011 2011

229.38

912.39

253.25

874.04

0.25 0.29

COMMENTS: This ratio has reduced from 1.29 to 0.25 this year. It shows that

funds bearing fixed return has decreased. It is not that great. It a sign of low

gearing.

2011 2010

229.38

683.02

253.25

620.780.34 :1 0.41:1


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MANAGEMENT EFFICIENCY RATIOS:

1) GROSS PROFIT RATIO = GROSS PROFIT x 100NET SALES

2011 2010

617.37 x 1001,202.38

543.05 x 100990.58

51.35% 54.82%

COMMENTS:This is a profitability ratio. It is useful for intra-firm comparison tofind out the % of profit after deducting direct expenses.This year gross profit ratio

has decreased from 54.82% to 51.35% compared to last year. It shows that this

year there have been higher direct expenses by the company.


NET SALES

2011 2010

165.40x 1001,202.38

102.02 x 100990.58

13.76% 10.30%

COMMENTS:Its the main test of profitability & operational efficiency.NPR of

Coca cola co. has increased from 10.30% to 13.76% which is better and shows

good control over expense in 2011.


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NET SALES

2011 2010

366.29x 1001,202.38

301.05 x 100990.58

30.46% 30.39%



capital employed in 2011 and 2010 respectively.


NET SALES

Parle agro Coca cola co.

366.29x 1001,202.38

301.05 x 100990.58

30.46% 30.39%

COMMENTS:It shows the portion of revenue used up by various items of

expenditure. In the both the years the ratio is almost similar.And since is below the

standard ratio it indicates dat in both the year the company had very good control

over expenditure.


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PROFITABILITY RATIOS

1)

RETURNS ON CAPITAL EMPLOYED := NET PROFI T B4 INTEREST & TAX x 100

CAPITAL EMPLOYED

2011 2010

296.92x 100912.39

279.10 x 100874.04

32.54% 31.93%

COMMENTS:It indicates the earning capacity and optimum utilization of funds

and capital structure planning . utilization of funds is better in the year 2011 when

compared to 2010.It has increased from 31.93% to .32.54% in 2010.


PROPRIETORS FUND

2011 2010

125.66x 100912.39

66.62 x 100874.04

13.77% 7.62%

COMMENTS: It indicates the earning capacity and optimum utilization of assets.

In 2011 it was 13.77% and In 2010 it was 7.62% Comparing both the years it

signifies a better utilization of shareholders funds or higher productivity of ownersfunds in year 2011 compared to the yr 2010.


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Trend analysis of balancesheet of the

coca cola company

Particulars Rs (in crs) % Base Year2009 2010 2011 2009 2010 2011

A)Sources of funds

1.Shareholders fund

a) Equity share capital 12.43 15.13 15.13 100 121.721641 121.7216412

b) Reserves/

surplus

282.9 605.65 667.89 100 214.08625 236.0869565

NETWORTH 295.33 621.78 683.02 100 210.537365 231.2734907

2.Borrowed funds

a) Secured loans 373.06 149.23 175.64 100 40.0016083 47.08089851

b) Unsecured loans 67.02 104.02 53.74 100 155.207401 80.1850194

OWED FUNDS 440.08 253.25 229.38 100 57.5463552 52.12234139

TOTAL FUNDS 736.11 874.04 912.39 100 118.737689 123.9475078


1. Fixed asset

a) Gross block 706.44 763.46 796.96 100 108.071457 112.813544

b) less depreciation 93.87 202.62 314.52 100 215.85171 335.0591243

c) Capital work in progress 36.7 6.21 6.48 100 16.9209809 17.65667575

100

2. Investment 39.89 62.08 7.08 100 155.627977 17.74880923


advances

214.66 417.77 583.79 100 194.619398 271.9603093


provisions

172.87 167.4 100

Net current assets 46.95 244.9 416.39 100 521.618743 886.8796592

TOTAL CAPITAL EMPLOYED 736.11 874.04 912.39 100 118.737689 123.9475078


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Comparative statement of balance sheet

of the coca cola company

Particulars 2010 2011 Incr/ Decr

(Rs)

Incr/Decr(

%)

A)Sources of funds

1.Shareholders fund

a) Equity share capital 15.13 15.13 0 0

b) Reserves/ surplus 605.65 667.89 62.24 10.27656237

NETWORTH

2.Borrowed funds

a) Secured loans 149.23 175.64 26.41 17.6975139

b) Unsecured loans 104.02 53.74 -50.28 -48.3368583

OWED FUNDS 253.25 229.38 -23.87 -9.425468904

TOTAL FUNDS 874.04 912.39 38.35 4.387671045


1. Fixed asset

a) Gross block 763.46 796.96 33.5 4.387918162


c) Capital work in progress 6.21 6.48 0.27 4.347826087

2. Investment 62.08 7.08 -55 -88.59536082


advances

417.77 583.79 166.02 39.73956962


provisions

172.87 167.4 -5.47 -3.164227454

Net current assets 244.9 416.39 171.49 70.0244998

TOTAL CAPITAL EMPLOYED 874.04 912.39 38.35 4.387671045


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Common size of balance sheet of the coca

cola company

Particulars Rs (in crs)

2010

% Rs (in crs)

2011

%

A)Sources of funds

1.Shareholders fund

a) Equity share capital 15.13 1.731042 15.13 1.658355

b) Reserves/ surplus 605.65 69.29317 667.89 73.20546

NETWORTH 620.78 0 683.02 02.Borrowed funds

a) Secured loans 149.23 17.07359 175.64 19.25138

b) Unsecuredloans 104.02 11.90106 53.74 5.890283

OWED FUNDS 253.25 28.97465 229.38 25.14167

TOTAL FUNDS 874.04 100 912.39 100.0044


1. Fixed asset

a) Gross block 763.46 87.34841 796.96 87.35244


c) Capital work in progress 6.21 0.710494 6.48 0.710254

0 0

2. Investment 62.08 7.10265 7.08 0.776018


advances

417.77 47.79758 583.79 63.9875


provisions

172.87 19.77827 167.4 18.34822

0 0Net current assets 244.9 28.01931 416.39 45.63928

0 0

TOTAL CAPITAL EMPLOYED 874.04 100 912.39 100.004


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CommentS on balance sheet -trend


1. Company issued same number of shares in all three years. whereas

RESERVESof the company has decreased from 100% in 2009 to 214.08 % in

2010 to 236.08% in 2011.

2. Company issued DEBENTURESin 2009 is100% it decreased to 52% in 2010.

However in 2011 it increased to 57%.it shows that the company took moresecured loan.

3. Due to increase in loan funds and shareholder fund NET WORTHof business

went down from 100% in 2009 to 119% in 2010 to 123% in 2011.

4.

These sources were used for buying assets like building, machineryetc.TOTAL FIXED ASSETS decreased from 100% in 2009 to 91% in 2010 to

79% in 2011

5. CURRENT ASSETincreased from 100% in 2009 to 103% in 2010 and it

decreased to 99% in 2011.

6. CURRENT LIABILITIES increased from 100% in 2009 to 103% in 2010 and

decreased to 99% in 2011


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CommentS on balance sheet-

comparative statement of the coca

cola company

1. Share capital includes RESERVES AND SHAREHOLDERS

FUND.Reserves have increased by 62.24.Equity share were same in the yr

2010 and 2011.Reserve have increased from 605.65 in 2010 to.667.89 in 2011.

2. OWNED OR BORROWED FUNDhave decrease by 23.87 companies

dependency on outside liability had decreased in 2011 when compared to 2010.

3. FIXED ASSETSof the company has increased by 172.4.

4. INVESTMENTSof the company has decreased by 55. it means companymade more investment in 2010 compared to 2011.

5. CURRENT ASSETSof the company has increased by 166.02

6.CURRENT LIABILITIESof the company has decreased by 5.47. it was

172.78 in 2010 and it had decreased to 167.4 in 2011


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Trend analysis of profit and loss account



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Comparative statement of profit and loss

account of the coca cola company


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Common size of profit and loss account of

the coca cola company


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Overall analysis-conclusion

COMAPARITIVE RATIO ANALYSIS OF PARLE AGROAND THE COCA COLA COMPANY

FINANCIAL STABILITY, SOLVENCY AND LIQUIDITY

RATIOS:

1)CURRENT RATI O= CURRENT ASSETS



1,510.526,397.47

583.79167.40

0.24 : 1 3.48 : 1

COMMENTS: Current ratio indicates the short term solvency position.The short

term solvency position of parle agro is not satisfactory since its 0.24: 1 which is

below the standard current ratio 2:1. However the short term solvency position in

case of coca cola co. is satisfactory as its 3.48: 1,which is not below the current

ratio 2:1. Hence the solvency position of coco cola co. is better compared to parle

agro


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TOTAL ASSETS


4,447.22X10010844.69

912.39X 1001079.79

41% 84.50%


business.proprietors share in investment in total assets is 41% in case of Parle agro

& 84.50% in case of coca cola co. Hence Coca cola co indicates a sound and

satisfactory long term solvency position when compare to Parle agro.It also

indicates that company relies more on owned funds then on borrowed funds.


EQUITY

COMMENTS: Debt -equity indicates the long term borrowing as a proportion to

owned funds. Its 0.50:1 in Parle agro and 0. 34:1 in Coca cola co.ratio which is

lower, more secured are the creditors and they suffer lessthan the owner. hence the

ratio is satisfactory it should be lower, so that creditors enjoy higher degree ofsafety. Hence in both the companies creditors enjoy high degree of safety.

Parle agro Coca cola

1491.162956.06

229.38683.02

0.50 :1 0.34 :1


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4) CAPI TAL GEARING RATIO:

= F IXED INCOME BEARING SECURITI ES X 100

NON-FI XED I NCOME BEARING SECURITIES


1491.164,447.22

229.38912.39

0.34 0.25

COMMENTS: In Parle Agro ratio is 0.34 and in Coca cola co. its 0.25. since the

ratio is less than 1, the capital is said to be very lowly geared.

MANAGEMENT EFFICIENCY RATIO:S

1) GROSS PROFIT RATIO = GROSS PROFIT x 100

NET SALES


4284.91 x 10019,242.09

617.37 x 1001,202.38

22.27% 51.35%

COMMENTS: Parle agro Company is earning gross profit in the ratio of 22.27%

on net sales. And Coca cola is earning gross profit in the ratio of 51.35% on net

sales. Hence the profitability position of Coca cola co. is better when compared to

Parle agro.


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NET SALES


2,484.60x 10019,242.09

165.40x 1001,202.38

12.91% 13.76%

COMMENTS:Its the main test of profitability &operational efficiency.NPR of

Coca cola co. is 13.76% which is better compared to Parle agro which is 12.91%

3) NET PROFI T RATIO = NPAT X 100

NET SALES


2,007.74x 10019,242.09

125.66 x 1001,202.38

10.43% 10.45%

COMMENTS: Its the main test of profitability & operational efficiency.NPR of

Coca cola is 10.45% which is better compared to Parle agro which is 10.43%

4) NET PROFI T RATIO =OPERATI NG NET PROFI T x 100

NET SALES

Parle agro Coca cola co.2,460.26x 100

19,242.09251.08x 100

1,202.38

12.79% 20.88%

COMMENTS: Its the main test of profitability & operational efficiency.NPR

Coca cola co. is 20.88% which is better compared to Parle agro which is 12.79%


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NET SALES


1,824.65x 10019,242.09

366.29x 1001,202.38

9.48% 30.46%



capital employed in Parle agro and Coca cola co. respectively


NET SALES


1,824.65x 10019,242.09

366.29x 1001,202.38

9.48% 30.46%

COMMENTS: It shows the portion of revenue used up by various items of

expenditure. so Parle agro company is more efficient in controlling its overall

operational costs as indicated by its lower ratio of operational expenses.


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PROFITABILITY RATIOS:

1)

RETURNS ON CAPITAL EMPLOYED:

= NET PROFI T B4 INTEREST & TAX x 100

CAPI TAL EMPLOYED


2,885.13x 1004,447.22

296.92x 100912.39

64.87% 32.54%

COMMENTS:It indicates the earning capacity and optimum utilization of funds

and capital structure planning . utilization of funds is better in case of Parle agro

when compared to coca cola co.


PROPRIETORS FUND

Parle agro Coca cola co.2,007.74x 100

4,447.22125.66x 100

912.39

45.15% 13.77%

COMMENTS: It indicates the earning capacity and optimum utilization of assets.

In Parle agro its 45.15% and In Coca cola co. its 13.77% Comparing both the

companies it signifies a better utilization of shareholders funds or higher

productivity of owners funds in Parle agro compared to coca cola co.


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COMMON SIZE STATEMENT

A company financial statement that displays all items as percentages of acommon base figure. This type of financial statement allows for easy

analysis between companies or between time periods of a company

The values on the common size statement are expressed as percentages of a

statement component such as revenue. While most firms don't report their

statements in common size, it is beneficial to compute if you want to analyze

two or more companies of differing size against each other.

Formatting financial statements in this way reduces the bias that can occur

when analyzing companies of differing sizes. It also allows for the analysis

of a company over various time periods, revealing, for example, what

percentage of sales is cost of goods sold and how that value has changed

over time.

A statement where balance sheet items are expressed in the ratio of each

asset to total assets and the ratio of each liability is expressed in the ratio of

total liabilities is called common size balance sheet.

PARLE AGRO & THE COCO-COLA COMPANY

Both the companies are suffering from shortage of working capital. The

percentage of current liabilities is more than the percentage of current assets in

both the companies.

A close look at the balance sheet shows that investments in fixed assets have

been from working capital in both the companies. In Anoop Ltd. fixed assets

account for 94.52% of total assets while in Bansal Ltd fixed assets account for

89.48%. Thus, both the companies face working capital problem and

immediate steps should be taken to issue more capital or raise long term loans

to improve working capital position.


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Interpretation

The sale and gross profit have increased in absolute figures in 2007 as

compared to 2006. But the percentage of gross profit to sales has gone down in

2007.

The increase in cost of sales as a percentage of sales has brought the

profitability from 34% to 27.14%.

Operating expenses have remained the same in both the years.

Net profit have decreased both in absolute figures and as a percentage in 2007as compared to 2006.


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Comparative Statement

The comparative statement lines up a section of the income statement, balancesheet or cash flow statement with its corresponding section from a previous

period. It can also be used to compare financial data from different companies

over time, thus revealing the trend in the financials.

Analysts like comparative statements because they show the effect business

decisions have on a company's bottom line. Analysts can identify trends and

evaluate the performance of managers, new lines of business on one statement

instead of having to flip through individual financial statements from different

periods of time.

When comparing different companies, a comparative statement can show how

businesses react to market conditions affecting an entire industry.

The elements of financial position are shown in a comparative form so as to givenan idea of financial position at two or more periods. Any statement prepared in acomparative form will be covered in comparative statements.

The financial data will be comparative only when same accounting principles are

used in preparing these statements. In case of any deviation in the use ofaccounting principles this fact must be mentioned at the foot of financial

statements and the analyst should be careful in using these statements. The two

comparatives are (i) Balance sheet, and (ii) Income statement.


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PARLE AGRO & the COCO-cola company

Interpretation

The comparative income statement given shows that there has been an increase in

net sales of 14.65%. The cost of goods sold has increased by 11%. This has

resulted in increase of gross profit by 19.4%.

Operating expenses have increased by 8%. The increase in gross profit is sufficient

to cover the operating expenses. There is also an increase in net profit after tax of

Rs 38000 i.e. 42.22%.

It is concluded from the above analysis that there is sufficient progress in the

performance of the company and the overall profitability of the company is good.


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TREND ANALYSIS

Trend analysis is a form of comparative analysis that is often employed to identify

current and future movements of an investment or group of investments. Theprocess may involve comparing past and current financial ratios as they related to

various institutions in order to project how long the current trend will continue.

This type of information is extremely helpful to investors who wish to make the

most from their investments.

The term "trend analysis" refers to the concept of collecting information andattempting to spot a pattern, or trend, in the information. In some fields of study,the term "trend analysis" has more formally-defined meanings

Although trend analysis is often used to predict future events, it could be used toestimate uncertain events in the past, such as how many ancient kings probablyruled between two dates, based on data such as the average years which otherknown kings reigned.

PARLE AGRO

The above comparison shows that in the past 2 yrs, the net worth has decreased

whereas the borrowed fund of the company have increased tremendously. This

proves that parle agro is a company with a not strong financial standing.

THE COCA-COLA COMPANY

The above comparison shows that in the past 2 yrs, the net worth has decreased

whereas the borrowed fund of the company have increased tremendously. This

proves that parle agro is a company with a not strong financial standing.


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Interpretation

On the whole, 2005 was a bad year but the recovery was made during 2006.

In this year there is increase in sales as well as profit.

The figure of 2005 when compared with 2004 reveal that the sales have

come down by 5%. However, the cost of goods sold and the expenses have

decreased only by 1.8% and 3% respectively. This has resulted in decrease

in Net profit by 12%.

The position was recovered in 2006 and not only the decline but also there

is positive growth in both 2006 and 2007. Moreover, the increase in profit

by 31.3% (2006) and 50.6% (2007) is much more than the increased in sales

by 20% and 30% respectively. This shows major portion of cost of goods

sold and expenses is of fixed nature.


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Webliography

1.

WWW.GOOGLE.COM

2.

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the soft drink industry comp and all (1) (2) (3) final

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