8/14/2019 a balanace sheet presentation

1/18

Abhilash

Joel

KrishnaNagini

TATA TEA

8/14/2019 a balanace sheet presentation

2/18

INTRODUCTIONTata Tea Limited is a group company of

Tata Group.

Tata Tea was formed in 1983 from theerstwhile Tata Finlay Company, a joint

venture company formed in 1964.Tata Tea Limited is involved in the tea

extract business for last 40 odd years.

The company has five major brands in the

Indian market - Tata Tea, Tetley, KananDevan, Chakra Gold and Gemini tea.

Tata Tea leads market share in terms ofvalue and volume in India.

8/14/2019 a balanace sheet presentation

3/18

OBJECTIVE OF THE STUDY ALYSIS OF ANNUAL REPORT OF TATA TEA WITH

:ESPECT TO THE FOLLOWING TERMS

Accounting policyFixed assetsLiabilitiesDepreciation

InventoriesDividendsReserves and Surplus

Secured andUnsecured loans

Income Statement

Balance SheetCash Flow StatementNotes To Accounts

Directors ReportCorporate Governance

ReportAuditors Report

8/14/2019 a balanace sheet presentation

4/18

ACCOUNTING POLICYAccounting policy refers to the specific

accounting principles and the methods ofapplying those principles adopted by an

entity in the preparation and presentationof financial statements.

8/14/2019 a balanace sheet presentation

5/18

FIXED ASSETS

Assets which are permanent in nature andheld by a business for a long period oftime.

Types of fixed assets- tangible and intangible

OBSERVATION:The tangible assets of the company include

land, tea estates land fuel area, buildings,bridges, plant and machinery, motor

vehicles furniture fixture and officeequipment. The intangible assets include capitalized

software, non compete fee. There is an increase in the fixed assets by

Rs.353.89 lakhs over the previous year.

8/14/2019 a balanace sheet presentation

6/18

LIABILITIES

Liabilities are debts or obligations of a

company.Liabilities are of two types:

I. Long term liabilities

II.Current liabilities

OBSERVATIONS

The Liabilities of Tata tea include sundrycreditors, outstanding dues of micro andsmall enterprises

There is a increase in the liabilities by 18.59%

over the previous year which clearly state

8/14/2019 a balanace sheet presentation

7/18

DEPRECIATION

Depreciation is a measure of the wearing out,consumption or other loss of value of adepreciable asset arising from use, efflux of time,or obsolescence through technology and marketchanges.

OBSERVATIONS

As more of plant and machinery is added in thebusiness during the year hence, depreciation isincreased by 4.75% during the year

8/14/2019 a balanace sheet presentation

8/18

INVENTORIES

Inventory is the most important non-monitory

current asset that appears in the balance sheet.

Inventories represent stock of the following items:

I. Finished goods held for sale

II.WIP(goods in the production processIII.Raw materials, maintenance supplies and

consumables and loose tools

OBSERVATIONSInventory has increased mainly due to the

purchases of raw materials and finished goods by48.65% .

8/14/2019 a balanace sheet presentation

9/18

DIVIDENDS

Dividend is distribution of divisible profit amongmembers.

Preference share holders have a preferential right

on the divisible profit of the company.

OBSERVATIONS

The dividends declared for the year is Rs. 509.53

lakhs which is decreased by 36.43% over theprevious year.

8/14/2019 a balanace sheet presentation

10/18

RESERVE & SURPLUS

Reserves and surplus are retained earningsnormally arise out of profitable operations.

These are surpluses earned by the firm anddecide to retain with in the business.

OBSERVATIONS

The company has capital reserve,Revaluation reserve and contingency

reserve which remained unchanged in theyear

Debenture redemption reserve hasincreased by Rs. 3000 lakhs and generalreserve have increased by Rs.1591 lakhs

during the year

8/14/2019 a balanace sheet presentation

11/18

LOANS

Secured and unsecured loans are a major parts of

long term liabilitiesIn secured loans, the fixed assets usually owned by

the firm, assigned to the lender by a pledge ormortgage act as the security

Unsecured loans are loans where in case of defaultin the repayment of the loan, the lender cannotform fall upon any security or take possession.

OBSERVATIONS

There is a 17.90% decrease in the secured loanswhich clearly indicates that loans are cleared tosome extent.

There is 44.01% increase in the unsecured loans.

8/14/2019 a balanace sheet presentation

12/18

BALANCE SHEET

The balance sheet lists assets, liabilities andowners equity of the business.

The balance sheet balances the listed accountswith the accounting equation;

ASSETS = LIABILITIES + OWNERS EQUITY(CAPITAL)

OBSERVATIONSFixed assets have increased.Investments have increased slightly.Current assets have increased slightly.

Share capital remained unchanged.Reserves and surplus have decreased slightly.Long term liabilities: secured loans are paid upto

some extent and there is a increase in unsecuredloans.

Current liabilities are decreased.

8/14/2019 a balanace sheet presentation

13/18

CASH FLOW STATEMENT

Cash flow statement presents cash receiptsand payments and payments classified by

operating, investing and financing activities.A cash flow statement helps to assess the

ability of the firm to generate and use cash tothe benefit of shareholders.

OBSERVATIONS

The cash is generated from operating activitiesfor Rs. 582.40 lakhs

The cash generated from investing activities isRs36982.08 lakhs.

The cash which is generated in financingactivities have turned out to be Rs.3152.90lakhs.

8/14/2019 a balanace sheet presentation

14/18

Notes to accounts contain the informationabout all the matters which are disputed orneed further disclosure.

It is very important to go through the notesto accounts while using any of the financialstatements.

It assists in understanding the importantinformation that may be concealed in thefinancial statements but revealed in thenotes to accounts.

8/14/2019 a balanace sheet presentation

15/18

DIRECTORS REPORT

A report given by the director for the benefit ofshareholders is called as the directors report.

OBSERVATIONS

The Company recorded improved operationsduring 2008-09 with total income increasingby 21% to Rs.1524.64 crores compared withRs. 1263.29 crores in the previous year

The total outgo on account of dividend, inclusiveof taxes, for 2008-09 is Rs. 125.33 crores

which represents a pay-out of 79% of thecompanys stand alone profits.

8/14/2019 a balanace sheet presentation

16/18

CORPORATE GOVERNANCEREPORT

It is a report of laws, regulations, processes andcustoms affecting the way a company isdirected, administered, controlled or managed

OBSERVATIONSThe report gives information regarding directors

and its corporate governance policy.

8/14/2019 a balanace sheet presentation

17/18

AUDITORS REPORT

The auditors report states the assessment of thecompany by a group of qualified auditors.

They make sure that the profits depicted in thecompany are true so that it does not depict

any false information in the books of accounts.

OBSERVATIONS

The auditors report states that the audit is in

accordance with the auditing standardsgenerally accepted in India.

It also involves the evaluation of financialstatement presentation.

8/14/2019 a balanace sheet presentation

18/18

THANKYOU