1. SUMMER TRAINING PROJECT GlaxoSmithKline Consumer Health Care Ltd. Presented By: Aanchal Gupta MBA 2-A Roll No. 94972238132

4. Major Players in Food Processing Industry

10. GLAXOSMITHKLINE CONSUMER HEALTHCARE LIMITED

21. Supply Chain Process

34. FINANCIAL ANALYSIS & INTERPRETATION

35. Types of Financial Analysis Process of determining financial strengths & weaknesses of firm by establishing strategic relationship between the items of balance sheet, profit & loss account and other operative data

46. Graph 4.4

48. Graph 4.5

49. Creditors Turnover Ratio Creditors Turnover Ratio = Net Credit Annual Purchases Average Creditors Table 4.6 GSK Nestle Dabur Marico Britannia Annual Purchase (lacs) 72781.68 24570317 137617.92 1157.03 19103947 Opening Creditors (lacs) 17245.92 5026075 24728.54 186.68 971097 Closing Creditors (lacs) 29063.87 5823233 13612 177.28 896175 Average (lacs) 23154.89 5424654 19170.27 181.98 933636 Ratio 3.14 4.52 7.17 6.35 20.46

50. Graph 4.6

52. Graph 4.7

55. Graph 4.8

56. Return on Shareholder Fund Return on Shareholder fund = Net Profit (after interest & tax) Shareholder’s fund Table 4.9 GSK Nestle Dabur Marico Britannia Net Profit (after interest & tax) 23539.65 6550028 39121.21 142.10 1804001 Shareholders Fund 90509.61 5812650 82338.46 367.68 8245412 Ratio 26.01 112.69 47.51 38.65 21.88

57. Graph 4.9

59. Graph 4.10

61. Graph 4.11

64. Graph 4.12

66. Graph 4.13

68. Graph 4.14

69. Fixed Assets to Shareholder funds Ratio Fixed Assets to = Fixed Assets (after Dep.) Shareholder funds Ratio Shareholder funds Table 4.15 GSK Nestle Dabur Marico Britannia Fixed Asset (after depreciation) 23226.15 9758321 36003.11 161.52 2838596 Shareholder Funds 90509.61 5812650 82338.46 367.68 8245412 Ratio 0.26 1.68 0.44 0.44 0.34

70. Graph 4.15

72. Trend of Net Sales of GSK Table 4.16 2005 2006 2007 2008 2009 Net Sales (Lacs) 96684 110787 127847 154175 192150 Trend of Net Sales (%) 100.00 114.59 115.40 120.59 124.63

73. Trend of Net Sales of Dabur Table 4.17 2005 2006 2007 2008 2009 Net Sales (Lacs) 122623 134279 160043 208340 239616 Trend of Net Sales (%) 100.00 109.51 119.19 130.18 115.01

74. Trend of Net Sales of Britannia Table 4.18 2005 2006 2007 2008 2009 Net Sales (Lacs) 161540 181790 219930 258410 311220 Trend of Net Sales (%) 100.00 112.54 120.98 117.50 120.44

75. Trend of Net Sales of Marico Table 4.19 2005 2006 2007 2008 2009 Net Sales (Lacs) 93832 109877 136011 156474 191717 Trend of Net Sales (%) 100.00 117.10 123.78 115.05 122.52

76. Trend of Net Sales of Nestle Table 4.20 2005 2006 2007 2008 2009 Net Sales (Lacs) 247690 281606 350435 432424 512938 Trend of Net Sales (%) 100.00 113.69 124.44 123.40 118.62

77. Comparison: Net Sales Growth (%) YOY Table 4.21 2006 2007 2008 2009 GSK 14.59 0.81 5.20 4.04 Dabur 9.51 9.68 10.99 -15.16 Britannia 12.54 8.44 -3.48 2.94 Marico 17.10 6.69 -8.74 7.48 Nestle 13.69 10.75 -1.05 -4.78

78. Graph 4.21

79. Trend of Net Profit of GSK Table 4.22 2005 2006 2007 2008 2009 Net Profit (Lacs) 10715 12693 16268 18833 23278 Trend of Net Profit (%) 100.00 118.46 128.17 115.77 123.60

80. Trend of Net Profit of Dabur Table 4.23 2005 2006 2007 2008 2009 Net Profit (Lacs) 15600 21400 28200 33300 39100 Trend of Net Profit (%) 100.00 137.18 131.78 118.09 117.42

81. Trend of Net Profit of Britannia Table 4.24 2005 2006 2007 2008 2009 Net Profit (Lacs) 14870 14640 10760 19100 18040 Trend of Net Profit (%) 100.00 98.45 73.50 177.51 94.45

82. Trend of Net Profit of Marico Table:4.25 2005 2006 2007 2008 2009 Net Profit (Lacs) 7010 8690 11290 16910 18870 Trend of Net Profit (%) 100.00 123.97 129.92 149.78 111.59

83. Trend of Net Profit of Nestle Table 4.26 2005 2006 2007 2008 2009 Net Profit (Lacs) 30957 31510 41381 53408 65500 Trend of Net Profit (%) 100.00 101.79 131.33 129.06 122.64

84. COMPARISON: Net Profit Growth (%) YOY Table 4.27 2006 2007 2008 2009 GSK 18.46 9.71 -12.40 7.84 Dabur 37.18 -5.40 -13.69 -0.67 Britannia -1.55 -24.96 104.01 -83.06 Marico 23.97 5.95 19.86 -38.19 Nestle 1.79 29.54 -2.26 -6.42

85. Graph 4.27

86. Trend of Earning Per Share of GSK Table 4.28 2005 2006 2007 2008 2009 Earning Per Share (Lacs) 24.84 30.18 38.68 44.78 55.35 Trend of Earning Per Share (%) 100.00 121.50 128.16 115.77 123.60

87. Trend of Earning Per Share of Dabur Table 4.29 2005 2006 2007 2008 2009 Earning Per Share (Lacs) 2.57 3.20 3.30 3.90 4.50 Trend of Earning Per Share (%) 100.00 124.51 103.13 118.18 115.38

88. Trend of Earning Per Share of Britannia Table 4.30 2005 2006 2007 2008 2009 Earning Per Share (Lacs) 60.59 59.96 45.06 79.95 75.51 Trend of Earning Per Share (%) 100.00 98.96 75.15 177.43 94.45

89. Trend of Earning Per Share of Marico Table 4.31 2005 2006 2007 2008 2009 Earning Per Share (Lacs) 1.20 1.50 1.90 2.80 3.10 Trend of Earning Per Share (%) 100.00 125.00 126.67 147.37 110.71

90. Trend of Earning Per Share of Nestle Table 4.32 2005 2006 2007 2008 2009 Earning Per Share (Lacs) 32.11 32.68 42.92 55.39 67.94 Trend of Earning Per Share (%) 100.00 101.78 131.33 129.05 122.66

91. Comparison: Earning Per Share Growth (%) YOY Table 4.33 2006 2007 2008 2009 GSK 21.50 6.67 -12.39 7.83 Dabur 24.51 -21.39 15.06 -2.80 Britannia -1.04 -23.81 102.28 -82.98 Marico 25.00 1.67 20.70 -36.65 Nestle 1.78 29.56 -2.28 -6.40

92. Graph 4.33

94. Common Size Statement of GSK Table 4.34 2009 Percentage (%) Currents Assets & loans Inventories 26603.2 18.79 Sundry Debtors 3135.64 2.21 cash & bank balance 81979.89 57.89 Other current assets 2196.82 1.55 Loans & advances 3375.28 2.38 Total CA (A) 117290.83 82.82 Fixed Assets (B) 23226.15 16.40 Investments ( C ) 0.05 0.00 Deferred Tax Asset (D) 1101.16 0.78 Total Assets (A+B+C+D) 141618.19

95. Contd... Current Liabilities & provisions Current liabilities 38095.94 26.90 Provisions 13012.64 9.19 Total Current Liabilities (E) 51108.58 36.09 Shareholders funds Share Capital (F) 4205.55 2.97 Reserves & Surplus (G) 86304.06 60.94 Deferred tax liability (H) 0 0.00 Total liabilities (E+F+G+H) 141618.19

96. Common Size Statement of Dabur 2009 Percentage (%) Currents Assets & loans Inventories 37546.88 19.88 Sundry Debtors 17788.42 9.42 cash & bank balance 14842.55 7.86 Loans & advances 24902.37 13.18 Total CA (A) 95080.22 50.33 Fixed Assets (B) 55916.96 29.60 Investments ( C ) 34696.52 18.37 Deferred Tax Asset (D) 2353.09 1.25 Miscellaneous expenditure (E) 864.08 0.46 Total Assets (A+B+C+D+E) 188910.87

97. Contd . Current Liabilities & provisions 2009 Percentage (%) Liabilities 48165.32 25.50 Provisions 32599.55 17.26 Total Current Liabilities (F) 80764.87 42.75 Shareholders funds Share Capital (G) 8650.76 4.58 Reserves & Surplus (H) 73687.7 39.01 Loan Funds secured (I) 9565.15 5.06 unsecured (J) 13193.89 6.98 Deferred tax liability (K) 3048.5 1.61 Total liabilities (F+G+H+I+J+K) 188910.87

98. Common Size Statement of Britannia 2009 Percentage (%) Currents Assets & loans Inventories 25363.31 19.93 Sundry Debtors 4961.43 3.90 Cash & bank balance 4079.78 3.21 Other current assets 1370.85 1.08 Loans & advances 18158.78 14.27 Total CA (A) 53934.15 42.37 Fixed Assets (B) 28385.96 22.30 Investments ( C ) 42309.69 33.24 Miscellaneous expenditure (D) 2663.74 2.09 Deferred tax asset (E) 0 0.00 Total Assets (A+B+C+D+E) 127293.54

99. Contd… Current Liabilities & provisions 2009 Percentage (%) Liabilities 26580.62 20.88 Provisions 14748.36 11.59 Total Current Liabilities (F) 41328.98 32.47 Shareholders funds Share Capital (G) 2389.02 1.88 Reserves & Surplus (H) 80065.1 62.90 Loan Funds Secured (I) 219.72 0.17 Unsecured (J) 2296.51 1.80 Deferred tax liability (K) 994.21 0.78 Total liabilities (F+G+H+I+J+K) 127293.54

100. Common Size Statement of Marico Table 4.37 2009 Percentage (%) Currents Assets & loans Inventories 33904 29.63 Sundry Debtors 11080 9.68 Cash & bank balance 9219 8.06 Loans & advances 12985 11.35 Total Current Assets (A) 67188 58.72 Fixed Assets (B) 31110 27.19 Investments ( C ) 1211 1.06 Goodwill on consolidation(D) 8503 7.43 Deferred tax asset(E) 6412 5.60 Total Assets (A+B+C+D+E) 114424

101. Contd... Current Liabilities & provisions 2009 Percentage (%) Liabilities 28027 24.49 Provisions 3551 3.10 Total Current Liabilities (F) 31578 27.60 Shareholders funds Share Capital (G) 6090 5.32 Reserves & Surplus (H) 39259 34.31 Minority interest(I) 0 Loan Funds Secured (J) 10751 9.40 Unsecured (K) 26746 23.37 Total Liabilities (F+G+H+I+J+K) 114424

102. Common Size Statement of Nestle Table 4.38 2009 Percentage (%) Currents Assets & loans Inventories 49873.8 24.50 Sundry Debtors 6418.63 3.15 cash & bank balance 15558.6 7.64 Loans & advances 13804.9 6.78 Total Current Assets (A) 85655.9 42.08 Fixed Assets (B) 97583.2 47.94 Investments ( C ) 20325.6 9.98 Total Assets (A+B+C) 203565

103. Contd... Current Liabilities & provisions Current liabilities 58759.1 28.87 Provisions 83479.4 41.01 Total Current Liabilities (D) 142238 69.87 Shareholders funds Share Capital (E) 9641.57 4.74 Reserves & Surplus (F) 48484.9 23.82 Deferred tax liability/(assets) net (G) 3199.72 1.57 Total liabilities (D+E+F+G) 203565

105. Comparative Balance Sheet of GSK Table 4.39 2008 2009 Absolute Change Percentage (%) Currents Assets & loans Inventories 27717.03 26603.2 (1113.83) (4.02) Sundry Debtors 4325.02 3135.64 (1189.38) (27.50) cash & bank balance 47097.69 81979.89 34882.20 74.06 Other current assets 2883.54 2196.82 (686.72) (23.82) Loans & advances 3313.34 3375.28 61.94 1.87 Total CA (A) 85336.62 117290.8 31954.21 37.44 Fixed Assets (B) 22610.83 23226.15 615.32 2.72 Investments ( C ) 0.05 0.05 0.00 Deferred Tax Asset (D) 0 1101.16 1101.16 Total Assets (A+B+C+D) 107947.5 141618.2 33670.69 31.19

106. Contd... Current Liabilities & provisions 2008 2009 Absolute Change Percentage (%) Current liabilities 25023.53 38095.94 13072.41 52.24 Provisions 6177.67 13012.64 6834.97 110.64 Total Current Liabilities (E) 31201.2 51108.58 19907.38 63.80 Shareholders funds Share Capital (F) 4205.55 4205.55 0.00 0.00 Reserves & Surplus (G) 71882.3 86304.06 14421.76 20.06 Deferred tax liability (H) 658.45 0 (658.45) (100.00) Total liabilities (E+F+G+H) 107947.5 141618.2 33670.69 31.19

107. Comparative Balance Sheet of Dabur Table 4.40: 2008 2009 Absolute Change Percentage (%) Currents Assets & loans Inventories 30248.42 37546.88 7298.46 24.13 Sundry Debtors 17231.97 17788.42 556.45 3.23 Cash & bank balance 7656.81 14842.55 7185.74 93.85 Loans & advances 22253.15 24902.37 2649.22 11.90 Total CA (A) 77390.35 95080.22 17689.87 22.86 Fixed Assets (B) 46525.63 55916.96 9391.33 20.19 Investments ( C ) 20371.63 34696.52 14324.89 70.32 Deferred Tax Asset (D) 2400.73 2353.09 (47.64) (1.98) Miscellaneous expenditure (E) 1395.27 864.08 (531.19) (38.07) Total Assets (A+B+C+D+E) 148083.61 188910.87 40827.26 27.57

108. Contd... Current Liabilities & provisions Liabilities 45796.70 48165.32 2368.62 5.17 Provisions 27409.97 32599.55 5189.58 18.93 Total Current Liabilities (F) 73206.67 80764.87 7558.20 10.32 Shareholders funds Share Capital (G) 8640.23 8650.76 10.53 0.12 Reserves & Surplus (H) 53592.55 73687.7 20095.15 37.50 Loan Funds Secured (I) 9756.15 9565.15 (191.00) (1.96) Unsecured (J) 160.05 13193.89 13033.84 8143.61 Deferred tax liability (K) 2727.96 3048.5 320.54 11.75 Total liabilities (F+G+H+I+J+K) 148083.61 188910.87 40827.26 27.57

109. Comparative Balance Sheet of Britannia Table 4.41 2008 2009 Absolute Change Percent age (%) Currents Assets & loans Inventories 30153.09 25363.31 (4789.78) (15.88) Sundry Debtors 4632.55 4961.43 328.88 7.10 Cash & bank balance 4376.64 4079.78 (296.86) (6.78) Other current assets 1319.3 1370.85 Loans & advances 14764.9 18158.78 3393.88 22.99 Total CA (A) 55246.48 53934.15 (1312.33) (2.38) Fixed Assets (B) 25068.07 28385.96 3317.89 13.24 Investments ( C ) 38083 42309.69 4226.69 11.10 Miscellaneous expenditure (D) 2322.58 2663.74 Deferred tax asset (E) 237.59 0 (237.59) (100.00) Total Assets (A+B+C+D+E) 120957.7 127293.5 6335.82 5.24

110. Contd… Current Liabilities & provisions Liabilities 24701.77 26580.62 1878.85 7.61 Provisions 10065.17 14748.36 4683.19 46.53 Total Current Liabilities (F) 34766.94 41328.98 6562.04 18.87 Shareholders funds Share Capital (G) 2389.02 2389.02 0.00 0.00 Reserves & Surplus (H) 73192.01 80065.1 6873.09 9.39 Loan Funds Secured (I) 193.72 219.72 26.00 13.42 Unsecured (J) 10416.03 2296.51 (8119.52) (77.95) Deferred tax liability (K) 0 994.21 Total liabilities (F+G+H+I+J+K) 120957.7 127293.5 6335.82 5.24

111. Comparative Balance Sheet of Marico Table 4.42 2008 2009 Absolute Change Percentage (%) Currents Assets & loans Inventories 26046 33904 7858.00 30.17 Sundry Debtors 8627 11080 2453.00 28.43 Cash & bank balance 7528 9219 1691.00 22.46 Loans & advances 10609 12985 2376.00 22.40 Total CA (A) 52810 67188 14378.00 27.23 Fixed Assets (B) 25731 31110 5379.00 20.90 Investments ( C ) 1 1211 1210.00 121000.00 Goodwill on consolidation (D) 8424 8503 79.00 0.94 Deferred tax asset (E) 9817 6412 (3405.00) (34.68) Total Assets (A+B+C+D+E) 96783 114424 17641.00 18.23

112. Contd… Current Liabilities & provisions Liabilities 25596.00 28027 2431.00 9.50 Provisions 3919 3551 (368.00) (9.39) Total Current Liabilities (F) 29515 31578 2063.00 6.99 Shareholders funds Share Capital (G) 6090 6090 0.00 0.00 Reserves & Surplus (H) 25372 39259 13887.00 54.73 Minority interest (I) 12 0 (12.00) (100.00) Loan Funds Secured (J) 13454 10751 (2703.00) (20.09) Unsecured (K) 22340 26746 4406.00 19.72 Total liabilities (F+G+H+I+J+K) 96783 114424 17641.00 18.23

113. Comparative Balance Sheet of Nestle Table 4.43 2008 2009 Absolute Change Percentage (%) Currents Assets & loans Inventories 43491.17 49873.79 6382.62 14.68 Sundry Debtors 4559.33 6418.63 1859.30 40.78 cash & bank balance 19368.93 15558.63 (3810.30) (19.67) Loans & advances 12375.89 13804.87 1428.98 11.55 Total CA (A) 79795.32 85655.92 5860.60 7.34 Fixed Assets (B) 86216.11 97583.21 11367.10 13.18 Investments ( C ) 3489.92 20325.55 16835.63 482.41 Total Assets (A+B+C) 169501.4 203564.7 34063.33 20.10

114. Contd... Current Liabilities & provisions Current liabilities 50746.71 58759.06 8012.35 15.79 Provisions 67731.57 83479.4 15747.83 23.25 Total Current Liabilities (D) 118478.3 142238.5 23760.18 20.05 Shareholders funds Share Capital (E) 9641.57 9641.57 0.00 0.00 Reserves & Surplus (F) 37693.4 48484.93 10791.53 28.63 Deferred tax liability/(assets) net (G) 3688.1 3199.72 (488.38) (13.24) Total liabilities (D+E+F+G) 169501.4 203564.7 34063.33 20.10