24-11-2012, 06:16 PM
Financial Statement Analysis of Britannia and Cadbury
Financial Statement Analysis.doc (Size: 300 KB / Downloads: 73)
Introduction
Ratios are the means of presenting information, in the form of a ratio or percentage, which enables a comparison to be made between one significant figure and another. Often the same ratios of like firms are used to compare the performance of one firm with another. A "one off" ratio is often useless - trends need to be established by company ratios over a number of years.
The great volume of statistics made available in the annual accounts of companies must be simplified in some way. Present and potential investors can therefore quickly assess whether the company is a good investment or not.
Financial ratio analysis is helpful in assessing an organisation's internal strengths and weaknesses. Potential suppliers will, for example, want to judge credit worthiness.
Ratios by themselves provide no information; they simply indicate by exceptions where further study may improve company performance. Management can compare current performance with previous periods and competing companies.
This project report covers all the aspects relating to the ratios of BRITANNIA and CADBURY INDIA LTD interpreted according to standards. The data analysed for this purpose was Secondary Data and the conclusions derived are based on performance and not potential valuation of the companies.
Objective of the Study
The main objective of ratio analysis is to show the firms relative strengthsand weakness. The objectives of ratio analysis are as follows:
• It determines the financial condition and financial performance of the firm.
• It involves comparison for a useful interpretation of the financial statements.
• It helps in finding solutions to unfavorable financial statements.
• It helps to take suitable corrective measures when the financial conditions and performance are unfavorable to the firm, in comparison to other firms in the same industry.
• With the help of this analysis, an analyst can determine the
The ability of the firm to meet its obligations.
The efficiency with which the firm is utilizing its various assets in generating sales.
The overall operating efficiency and performance of the firm
Cadbury
Cadbury India is a fully owned subsidy of Kraft Foods Inc. The combination of Kraft Foods and Cadbury creates a global powerhouse in snacks, confectionery and quick meals.
With annual revenues of approximately $50 billion, the combined company is the world's second largest food company, making delicious products for billions of consumers in more than 160 countries. We employ approximately 140,000 people and have operations in more than 70 countries.
In India, Cadbury began its operations in 1948 by importing chocolates. After 60 years of existence, it today has five company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota and Chennai). The corporate office is in Mumbai.
Currently, Cadbury India operates in four categories viz. Chocolate Confectionery, Milk Food Drinks, Candy and Gum category. In the Chocolate Confectionery business, Cadbury has maintained its undisputed leadership over the years. Some of the key brands in India are Cadbury DairyMilk, 5Star, Perk, Éclairs and Celebrations.