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History Of Godrej
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VISION OF GODREJ
To eventually emerge as a World leader in providing total
Flexible Packaging solutions,
we need a customer focused approach.
The way to being a world class player is paved with state-of-
the-art facilities blended with world class practices.
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MISSION OF GODREJ
We believe in using our creativity and potential in providing
flexible packaging solutions.
packaging easier, faster, more efficient and user friendly.
In this way we too have a share in contributing to theconservation of resources by enhancing the shelf life of the
perishable products.
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OBJECTIVE
Their objective is to delight their customers both in
India and abroad.objective by re-engineering businesses and continuous
improvement in quality, cost and customer service.
They shall strive for excellence by nourishing,
developing and empowering their employees andsuppliers.
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CORPORATE GOVERANCE
The corporate governance
framework of our organization is based on
an effective independent board and
separation of the boards supervisory role
from the executive management team. The
Board has twelve directors, out of which six
are independent directors with distinguished
careers in government, academia, business.
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GODREJ PRODUCTS
Godrej & Boyce Mfg. Co. Ltd: (Refrigerators, Washing Machines, Air Conditioners,Microwaves, and DVD Players), Locks, Furniture, Security Equipment and vendingMachine
.
Godrej Consumer Products Ltd (GCPL): Cinthol, Fairglow Hair Dyes Kesh Kala
Oil
Godrej Industries Ltd: refined oil and tetrapack fruit beverages
Godrej Infotech: Developing software solutions and implementing ERP, CRM, SCMsoftware.
Godrej Agrovet: animal feeds and innovative agri-inputs India.
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PRODUCTS
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TOPICS COVERED
Financial decisions
Cost of capital
Dividend analysis
Working capital management
Liquidity position
Cash management
Receivable management
Inventory manaement
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CAPITAL STRUCTURE
From
Year To Year
Class Of
Share
Authorized
Capital(cr)
Issued
Capital(cr)
Paid UpShares
(Nos)
Paid Up
Face Value
Paid Up
Capital(cr)
2008 2009 Equity Share 80.00 31.98 319758602 1 31.98
2007 2008 Equity Share 80.00 31.98 319758602 1 31.98
2006 2007 Equity Share 80.00 29.19 281851652 1 28.19
2005 2006 Equity Share 80.00 29.19 48641942 6 29.19
2004 2005 Equity Share 80.00 29.19 48641942 6 29.19
2003 2004
Equity Share80
.00 29
.19 48641942 2 9
.73
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COST OFCAPITAL
IT IS A CENTRAL CONCEPT IN FINANCIAL
MANAGEMENT
The Rate of return expected by the existingcapital providers. It reflects the business risk of
existing assets and the capital structure
currently employed.
cost of equity + cost of debt = cost of capital
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Cost OFequity or Ke=(div/po)+g)
particula
rs
Mar-
2005
Mar-
2006
Mar-
2007
Mar-
2008Mar-2009
Cost of
equity(Ke)
18.42% 14.43% 12.36% 6.42% 6.24%
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Cost of debt(kd)=interest/total
debt
partic
ulars
Mar-
2005
Mar-
2006
Mar-
2007
Mar-
2008
Mar-
2009interest 17.45 24.31 39.02 38.28 58.51
TOTAL
DEBT
256.33 327.14 467.69 435.67 600.96
Kd 6.80% 7.43% 8.3% 8.78% 9.73%
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DIVIDEND ANALYSIS
YEAR EPS DPS BV ROE(EP
S /BV)
DIVIDE
ND
PAYOUT
RATIO
RETENT
ION
PAYOUT
RATION
EQUITY
DIVIDE
ND
2005 15.58 4 6 2.59 22.81 74.03 66.66%
2006 14.62 5 6 2.43 29.59 37.68 83.33%
2007 2.65 1 1 2.65 33.60 31.65 100%
2008 3.33 1.25 1 3.33 35.43 39.27 125%
2009 0.58 1.25 1 0.58 103.59 -2.11 125%
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SHARE PRICE
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FINANCIAL LEVERAGE
PARTICU
LARS
Mar ' 05
YEAR
Mar ' 06
YEAR
Mar ' 07
YEAR
Mar ' 08
YEAR
Mar ' 09
YEAR
SALES 763.86 742.63 655.39 724.65 811.94
PBDIT 113.99 133.07 143.79 173.79 101.74
Interest 17.45 24.31 39.02 38.28 58.51
PBDT 96.54 108.76 104.77 135.51 43.23
FINANCIAL
LEVERAGE 1.18 1.224 1.372 1.282 2.353
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OPERATING LEVERAGE
PARTIC
U
LARS
Mar ' 05
YEAR
Mar ' 06
YEAR
Mar ' 07
YEAR
Mar ' 08
YEAR
Mar ' 09
YEAR
Sales Turnover 821.99 800.54 714.26 796.02 873.47
Total
Expenses696.67 703.90 661.23 637.22 818.91
contribution 125.32 96.64 53.03 158.8 54.56
PBDIT 113.99 133.07 143.79 173.79 101.74
OPERATING
LEVERAGE1.09 0.73 0.37 0.91 0.53
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WORKING CAPITAL MANAGEMENTPARTICULARS MAR- 05 MAR-06 MAR-07 MAR-08 MAR-
09
(crores) (crores) (crores) (crores)
(crores)
Inventories107
.52 118
.92 155
.15 197
.71 93
.56
Sundry
Debtors86.04 58.07 92.53 156.40 161.00
Cash and Bank
Balance6.41 4.06 5.29 3.11 2.42
Total
Current
Assets
199.97 181.05 252.97 357.22 256.98
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WORKING CAPITAL MANAGEMENT(contd..)
particularsMar-
2005(crs)
Mar-
2006(crs)
Mar-
2007(crs)
Mar-
2008(crs)
Mar-
2009(crs)Loans and
Advances54.73 84.79 111.23 167.35 167.60
Fixed Deposits 7.37 8.54 20.08 291.18 26.10
Total CA,Loans &
Advances
262.07 274.38 384.28 815.75 450.68
Current
Liabilities208.93 203.34 228.26 293.72 185.28
Provisions 49.48 52.02 66.44 85.53 77.95
Total CL &
Provisions258.41 255.36 294.70 379.25 263.23
Net Current
Assets 3.66 19.02 89.58 436.50 187.45
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INTERPRETATION
y MORE INVESTMENT ON FIXED DEPOSITS.
y LESS PROVISIONS.
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LIQUIDITY POSITIONparticulars MAR05 MAR06 MAR07 MAR08 MAR09
CURRENT
RATIO
0.81 0.80 0.72 1.18 0.67
RATIO
QUICK
0.55 0.58 0.75 1.60 1.31
DEBT
EQUITY
RATIO
0.84 0.94 1.19 0.42 0.59
LONG TERM
DEPT
EQUITY
RATIO
0.65 0.73 0.73 0.19 0.24
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INVENTORYMANAGEMENTYEARS INVENTORY TURNOVER RATIO
MAR05 7.35
MAR06 7.46
MAR07 5.05
MAR08 4.39
MAR09 10.89
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RECIEVABLEMANAGEMENT
YEARS DEBTOR TURN OVERRATIO (in percentage)
AVERAGE COLLECTIONPERIOD (in days)
MAR05 9.37 39
MAR06 10.31 35
MAR07 8.70 41
MAR08 5.82 62
MAR09 5.12 71
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CASH MANAGEMENTparticulars MAR05(cr) MAR06(cr) MAR07(cr) MAR08(cr) MAR09(cr)
Net Cash From
Operating
Activities
46.00 15.29 -8.99 50.30 44.50
Net Cash from
Investing Activities-40.61 -33.06 -51.52 -262.61 -367.59
Net Cash from
Financing
Activities
2.80 18.99 73.28 481.24 57.32
Net
decrease/increase
In Cash and CashEquivalents
8.20 1.21 12.77 268.93 -265.78
Opening Cash &
Cash Equivalents5.58 11.38 12.60 25.36 294.29
Closing Cash &
Cash Equivalents13
.78 12
.60 25
.36 294
.29 28
.51
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THANK YOU
PRESENTED BY:SUPRIYA
SWATHICHAYABAN
SUMEETTHILAK JAI