1

THE SOFT DRINK INDUSTRY

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

Soft drinks constitute the third largest packaged food segment in India after
packaged tea and packaged biscuits. But the penetration level of carbonated soft
drinks 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 the
middle 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, the
college kid or the middle aged Indian soft drinks are enjoyed by one and all in the
country. 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 go
hand 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/her
home. Despite several issues that crept up regarding the ingredients used behind
the manufacturing of soft drinks the market remained stable.

The soft drink industry in India is categorized on the basis of carbonated and non
carbonated drinks. The carbonated drinks include flavors like cola, lemon and
orange and the non carbonated drinks segment includes mostly mango flavors. The
non carbonated segment includes fruit juices and squashes. The Top Soft Drink
Brands 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. In
order to cater to all the segments of the society these top soft drink brands are
available in numerous sizes.



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

Soft drinks do not only rule the urban markets they have successfully managed to
penetrate the rural areas as well. Rural areas account for almost 75% sales of Pet
bottles 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 two
segments. The first is On premise which means the place where the soft drink was
bought and consumed. This includes places like railway stations, stand alone
shops, restaurants and cinemas. The other one being In-House consumption which
means soft drinks purchased and consumed at home. However in India the former
beats the latter hollow. Outdoor consumption accounts for almost 80% of the total
sales of soft drinks and indoor consumption accounts for the remaining 20% of the
sales of the soft drinks market.

However the soft drinks market in India is still in its nascent stage as compared to
countries like the USA. According to a report published in 2000 the per capita
consumption of soft drinks in India was 5 bottles annually as compared to USA
whose per capita consumption per annum stood at 800 bottles. Delhi happens to be
the 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 the
names of these top players are given below:
COCO-COLA INDIA
PEPSICO INDIA
PARLE AGRO



3
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



4


PARLE AGRO COMPANY






5

Parle agro

INTRODUCTION
Parle 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 companies Parle 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 name Parle 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 was
the first product that was rolled out of Parle Agro in 1985. It went on to become
Indias favourite mango drink. It still has a leading market share.
Mr. Prakash Chauhan is the Executive Chairman of Parle Agro.



6
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 first sparkling 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



7
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 39.94
Share 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 48.14 120.54 408.49 189.92
Investments 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


8
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 8,703.99
Operating 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


9
PARLE AGRO- RATIO ANALYSIS AND
COMMENTS

LIQUIDITY RATIOS:

1) CURRENT RATI O=CURRENT ASSETS
CURRENT LI ABI LI TES
2011 2010.
1,510.52
6,397.47

2,890.46
4,992.04
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) PROPRI ETOR RATI O =PROPREI TORS FUNDS X 100
TOTAL ASSETS
2011 2010
4,447.22X100
10844.69
3,531.05 x 100
8522.51
41% 41.43%


10
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 relies more on owned funds then on borrowed funds.

3) DEBT EQUI TY RATI O =DEBT
EQUI TY

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 GEARI NG RATI O :
= FI XED I NCOME BEARI NG SECURI TI ES X 100
NON-FI XED I NCOME BEARI NG SECURI TI ES
2011 2010
1491.16 x100
4,447.22
66.03 x100
3,531.05
0.34 1.87
COMMENTS: 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
3465.02
0.50 :1 0.02:1


11
MANAGEMENT EFFICIENCY RATIOS:

1) GROSS PROFI T RATI O =GROSS PROFI T x 100
NET SALES
2011 2010
4284.91 x 100
19,242.09
3909.32 x 100
15,839.58
22.27% 24.68%

COMMENTS: This is a profitability ratio. It is useful for intra-firm comparison to
find 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 RATI O =NPBT x 100
NET SALES
2011 2010
2,484.60x 100
19,242.09
2,639.81 x 100
15,839.58
12.91% 16.67%

COMMENTS: Its the main test of profitability & operational efficiency. The
profit has decreased from 16.67% to 12.91%






12
3) NET PROFI T RATI O =NPAT X 100
NET SALES
2011 2010
2,007.74x 100
19,242.09
2,039.91 x 100
15,839.58
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 RATI O =OPERATI NG NET PROFI T x 100
NET SALES
2011 2010
2,460.26x 100
19,242.09
2,743.65 x 100
15,839.58
12.79% 20.88%

COMMENTS: Its the main test of profitability & operational efficiency. It had
decreased from 20.88% to 12.79 %

5) OPERATI NG RATI O =OPERATI NG COST x 100
NET SALES

2011 2010
1,824.65x 100
19,242.09
1165.67x 100
15,839.58
9.48% 7.36


13
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 =OPERATI NG EXPENSES x 100
NET SALES
2011 2010
1,824.65x 100
19,242.09
1165.67x 100
15,839.58
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.













14
PROFITABILITY RATIOS:

1) RETURNS ON CAPI TAL EMPLOYED :
= NET PROFI T B4 I NTEREST &TAX x 100
CAPI TAL EMPLOYED
2011 2010
2,885.13x 100
4,447.22
2,842.42x 100
3,531.05
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 PROPRI ETORS FUND =NET PROFI T AFTER TAX x 100
PROPRIETORS FUND

2009 2010
2,007.74x 100
4,447.22
2,039.91x 100
3,531.05
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.



15
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



16
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
B)Application of funds

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 in
progress
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




17
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
B)Application of funds

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





18
Comment on balance sheet-
comparative statement of parle
agro.

1. SHARE CAPITAL includes 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 FUND have 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 ASSETS of 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.






19
Comment on balance sheet trend of
parle agro company

1. Company issued same number of shares in all three years, whereas
RESERVES of the company has decreased from 100% in 2009 to 91% in 2010
to 77% in 2011.

2. SHARE HOLDERS FUND have 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 WORTH of business
went 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.



20
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


21

Comparative statement of profit and loss account
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 expenses
760.41 -
Adminstrative expenses
405.26 1,824.65 1,419.39 350.2418201
Expenses capitalised
- -
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
Preference dividend
- -
Dividend tax
371 340.14 -30.86 -8.318059299
Retained earnings
2,371.55 1,637.59 -733.96 -30.94853577


22

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 expenses
760.41 4.800695473 -
Adminstrative expenses
405.26 2.558527436 1,824.65 9.482597784
Expenses capitalised
- -
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
Preference dividend
- -
Dividend tax
371 2.342233822 340.14 1.767687398
Retained earnings
2,371.55 14.97230356 1,637.59 8.510458064


23


THE COCA COLA COMPANY




24
THE COCA- COLA COMPANY
INTRODUCTION

The Coca-Cola Company is the worlds largest beverage company. Along with
Coca-Cola, recognized as the worlds most-valuable brand, the Company markets
four of the worlds top five soft drink brands, including Diet Coke, Fanta and
Sprite and a wide range of other beverages, including water, juices and juice
drinks, tea, coffee and sports drinks. Through one of the worlds largest beverage
distribution system, consumers in more than 200 countries enjoy The Coca-Cola
Companys beverages at a rate exceeding 1.6 billion servings each day.
Coca-Cola in India is the countrys leading beverage Company with an unmatched
portfolio 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 and
indirect employment to more than 1, 50,000 people. The Coca-Cola System in
India has more than 1 million retailers and the business has a multiplier effect on
employment and earning opportunities. Coca-Cola in India is the largest
domestic buyer of sugar and one of the top buyers of mango pulp.

The Coca-Cola System in India business also positively impacts industries like
Glass, Plastics, Resin Manufacturers, Sugar, Automobiles, White Goods
Manufacturers, 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 refresh the markets,
protect, preserve and enhance the environment and strengthen the community.




25
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 the world'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 light in 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.




26
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 very
spirit 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.



27
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 22.81
Unsecured 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






28
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 25.92
Expenses 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





29
The coca cola company-ratio
analysis and comments

LIQUIDITY RATIOS :

1)CURRENT RATI O=CURRENT ASSETS
CURRENT LI ABI LI TES
2011 2010
583.79
167.40
417.77
172.87
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.

2) PROPRI ETOR RATI O =PROPREI TORS FUNDS X 100
TOTAL ASSETS
2011 2010
912.39X 100
1079.79
874.04 x 100
1046.91
84.50% 83.49%



30
COMMENTS: The proprietory ratio indicates the proprietors stakes in the
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

3) DEBT EQUI TY RATI O =DEBT
EQUI TY

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 GEARI NG RATI O :
= FI XED I NCOME BEARI NG SECURI TI ES X 100
NON-FI XED I NCOME BEARI NG SECURI TI 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
620.78
0.34 :1 0.41:1


31
MANAGEMENT EFFICIENCY RATIOS:

1) GROSS PROFI T RATI O =GROSS PROFI T x 100
NET SALES
2011 2010
617.37 x 100
1,202.38
543.05 x 100
990.58
51.35% 54.82%

COMMENTS:This is a profitability ratio. It is useful for intra-firm comparison to
find 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.

2) NET PROFI T RATI O =NPBT x 100
NET SALES
2011 2010
165.40x 100
1,202.38
102.02 x 100
990.58
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.





32
3) NET PROFI T RATI O =NPAT X 100
NET SALES
2011 2010
125.66 x 100
1,202.38
66.62 x 100
990.58
10.45% 6.73%

COMMENTS: Its the main test of profitability & operational efficiency.NPR of
Coca cola has increased from 6.73% to 10.43% hence it shows that company has
decrease its expense to increase profit .

4) NET PROFI T RATI O =OPERATI NG NET PROFI T x 100
NET SALES
2011 2010
251.08x 100
1,202.38
242.00 x 100
990.58
20.88% 24.43%

COMMENTS: Its the main test of profitability & operational efficiency.NPR
Coca cola co. has decreased from 24.43% to 20.88% in yr 2011









33
5) OPERATI NG RATI O =OPERATI NG COST x 100
NET SALES
2011 2010
366.29x 100
1,202.38
301.05 x 100
990.58
30.46% 30.39%

COMMENTS: Operating ratio is 30.46% resulting in a return of 69.54% on long
term capital employed and 30.39% resulting in a return of 69.61% on long term
capital employed in 2011 and 2010 respectively.

6) EXPENSE RATI O =OPERATI NG EXPENSES x 100
NET SALES
Parle agro Coca cola co.
366.29x 100
1,202.38
301.05 x 100
990.58
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.







34
PROFITABILITY RATIOS

1) RETURNS ON CAPI TAL EMPLOYED :
=NET PROFI T B4 I NTEREST &TAX x 100
CAPI TAL EMPLOYED
2011 2010
296.92x 100
912.39
279.10 x 100
874.04
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.

2) RETURN ON PROPRI ETORS FUND =NET PROFI T AFTER TAX x 100
PROPRI ETORS FUND
2011 2010
125.66x 100
912.39
66.62 x 100
874.04
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 owners
funds in year 2011 compared to the yr 2010.





35
Trend analysis of balancesheet of the
coca cola company
Particulars Rs (in crs) % Base Year
2009 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
B)Application of funds

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
3. Current assets, loans,
advances
214.66 417.77 583.79 100 194.619398 271.9603093
(-) Current liabilities and
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





36
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
B)Application of funds

1. Fixed asset

a) Gross block
763.46 796.96 33.5 4.387918162
b) less depreciation
202.62 314.52 111.9 55.22653243
c) Capital work in progress
6.21 6.48 0.27 4.347826087

2. Investment
62.08 7.08 -55 -88.59536082
3. Current assets, loans,
advances
417.77 583.79 166.02 39.73956962
(-) Current liabilities and
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



37

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 0
2.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
B)Application of funds

1. Fixed asset

a) Gross block
763.46 87.34841 796.96 87.35244
b) less depreciation
202.62 23.18201 314.52 34.47361
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
3. Current assets, loans,
advances
417.77 47.79758 583.79 63.9875
(-) Current liabilities and
provisions
172.87 19.77827 167.4 18.34822
0 0
Net current assets
244.9 28.01931 416.39 45.63928
0 0
TOTAL CAPITAL EMPLOYED
874.04 100 912.39 100.004


38
CommentS on balance sheet -trend
of the coca cola company

1. Company issued same number of shares in all three years. whereas
RESERVES of the company has decreased from 100% in 2009 to 214.08 % in
2010 to 236.08% in 2011.

2. Company issued DEBENTURES in 2009 is100% it decreased to 52% in 2010.
However in 2011 it increased to 57%.it shows that the company took more
secured loan.

3. Due to increase in loan funds and shareholder fund NET WORTH of 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, machinery
etc.TOTAL FIXED ASSETS decreased from 100% in 2009 to 91% in 2010 to
79% in 2011

5. CURRENT ASSET increased 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




39
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 FUND have decrease by 23.87 companies
dependency on outside liability had decreased in 2011 when compared to 2010.

3. FIXED ASSETS of the company has increased by 172.4.

4. INVESTMENTS of the company has decreased by 55. it means company
made more investment in 2010 compared to 2011.

5. CURRENT ASSETS of the company has increased by 166.02

6. CURRENT LIABILITIES of the company has decreased by 5.47. it was
172.78 in 2010 and it had decreased to 167.4 in 2011




40
Trend analysis of profit and loss account
of the coca cola company



















41
Comparative statement of profit and loss
account of the coca cola company



















42
Common size of profit and loss account of
the coca cola company



















43
Overall analysis-conclusion

COMAPARITIVE RATIO ANALYSIS OF PARLE AGRO
AND THE COCA COLA COMPANY

FINANCIAL STABILITY, SOLVENCY AND LIQUIDITY
RATIOS:

1)CURRENT RATI O=CURRENT ASSETS
CURRENT LI ABI LI TES
Parle agro Coca cola co.
1,510.52
6,397.47

583.79
167.40
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





44
2) PROPRI ETOR RATI O =PROPREI TORS FUNDS X 100
TOTAL ASSETS
Parle agro Coca cola co.
4,447.22X100
10844.69
912.39X 100
1079.79
41% 84.50%

COMMENTS: The proprietory ratio indicates the proprietors stakes in the
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.

3) DEBT EQUI TY RATI O =DEBT
EQUI TY

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 of
safety. Hence in both the companies creditors enjoy high degree of safety.



Parle agro Coca cola
1491.16
2956.06
229.38
683.02
0.50 :1 0.34 :1


45
4) CAPI TAL GEARI NG RATI O:
=FI XED I NCOME BEARI NG SECURI TI ES X 100
NON-FI XED I NCOME BEARI NG SECURI TI ES
Parle agro Coca cola co.
1491.16
4,447.22
229.38
912.39
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 PROFI T RATI O =GROSS PROFI T x 100
NET SALES
Parle agro Coca cola co.
4284.91 x 100
19,242.09
617.37 x 100
1,202.38
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.




46
2) NET PROFI T RATI O =NPBT x 100
NET SALES
Parle agro Coca cola co.
2,484.60x 100
19,242.09
165.40x 100
1,202.38
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 RATI O =NPAT X 100
NET SALES
Parle agro Coca cola co.
2,007.74x 100
19,242.09
125.66 x 100
1,202.38
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 RATI O =OPERATI NG NET PROFI T x 100
NET SALES
Parle agro Coca cola co.
2,460.26x 100
19,242.09
251.08x 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%


47
5) OPERATI NG RATI O =OPERATI NG COST x 100
NET SALES
Parle agro Coca cola co.
1,824.65x 100
19,242.09
366.29x 100
1,202.38
9.48% 30.46%

COMMENTS: Operating ratio is 9.48% resulting in a return of 90.52% on long
term capital employed and 30.46% resulting in a return of 69.54% on long term
capital employed in Parle agro and Coca cola co. respectively

6) EXPENSE RATI O =OPERATI NG EXPENSES x 100
NET SALES
Parle agro Coca cola co.
1,824.65x 100
19,242.09
366.29x 100
1,202.38
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.








48
PROFITABILITY RATIOS:

1) RETURNS ON CAPI TAL EMPLOYED:
=NET PROFI T B4 I NTEREST &TAX x 100
CAPI TAL EMPLOYED
Parle agro Coca cola co.
2,885.13x 100
4,447.22
296.92x 100
912.39
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.
2) RETURN ON PROPRI ETORS FUND =NET PROFI T AFTER TAX x 100
PROPRI ETORS FUND
Parle agro Coca cola co.
2,007.74x 100
4,447.22
125.66x 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.





49
COMMON SIZE STATEMENT

A company financial statement that displays all items as percentages of a
common 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 2007
as compared to 2006.















51
Comparative Statement

The comparative statement lines up a section of the income statement, balance
sheet 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 given
an idea of financial position at two or more periods. Any statement prepared in a
comparative 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 of
accounting 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.








52
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.
















53
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. The
process 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 and
attempting 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 to
estimate uncertain events in the past, such as how many ancient kings probably
ruled between two dates, based on data such as the average years which other
known 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.


54
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. WWW.MONEYCONTROL.COM

Bibliography


1. FINANCIAL MANAGEMENT FY.BAF (SEMESTER II)
2. MANAGEMENT ACCOUNTING SY.BAF (SEMESTER - IV)
3. NCFM FINANCIAL MODULE
4. INVESTMENT ANALYSIS & PORTFOLIO MANAGEMENT P.C.CHANDRA
























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