Philips India Limited

7/30/2019 Philips India Limited

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PRESENTED BY

ARUN KUMAR K G


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PHILIPS INDIA LIMITED


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Company Profile:

Royal Philips ElectronicsRoyal Philips Electronics of the Netherlands is

a diversified Health and Well-being company,

focused on improving peoples lives through

timely innovations. As a world leader in

healthcare, lifestyle and lighting.


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(contd)

Headquartered in the Netherlands, Philips employs approximately 119,000

employees in more than 60 countries

worldwide.


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(contd)

Sales of EUR 25.4 billion in 2010, the company

is a market leader in cardiac care, acute care and

home healthcare, energy efficient lightingsolutions and new lighting applications, as well

as lifestyle products for personal well-being


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History of the company


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company Heritage

The foundations of Philips were laid in 1891

when Anton and Gerard Philips established

Philips & Co. in Eindhoven, the Netherlands. The

company begun manufacturing carbon-filament

lamps and by the turn of the century, had

become one of the largest producers in Europe.


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Phillips India limited

Philips Electronics India Limited, a subsidiary of

the Netherlands-based Royal Philips Electronics, is

the leading Health and Wellbeing company. Today,

Philips is a simpler and more focused company withglobal leadership positions in key markets of

Healthcare, Lighting and Consumer Lifestyle,

addressing peoples Health and wellbeing needs

and aspirations as its overarching theme.


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Philips has been operating in India for over 75

years and employs over 4,500 employees

around the country. The company has an

excellent pan India distribution and after-sales

service network.


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Nature of business

Healthcare

Philips simplifies healthcare by focusing on the people in the

entire cycle of care - whether it is in the hospital or in the

home patients and care providers. Philips Healthcare in

India operates in the diagnostic imaging segment including CT,MRI, X-rays, cardiovascular system, nuclear medicine, PET-CT


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Lighting

Philips Electronics India, Indias largest lighting

company operates in business areas of Lamps,

Luminaires, Lighting Electronics, Automotive and SpecialLighting. With worldwide electrical lighting using 19 per

cent of all electricity.

In 2008, Philips inaugurated a global research and

development (R&D) centre for lighting electronics inIndia. This was its third such unit in the world.


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Consumer Lifestyle

The Consumer Lifestyle arm in India operates in the business

areas of Home Entertainment solutions and Personal

Infotainment with product categories such as TVs, home theatre

systems, music systems, DVD players, personal entertainment

solutions, sound accessories, Domestic Appliances and Personal

care


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Profit and loss account (in crores) mar-11 mar-10

Income

Sales Turnover 3,069.38 2,617.01

Excise Duty 1,467.68 1,213.86

Net Sales 1,601.70 1,403.15

Other Income 35.32 53.65

Stock Adjustments 4.83 -0.40

Total Income 1,641.85 1,456.40

Expenditure

Raw Materials 626.18 655.31

Power & Fuel Cost 9.45 8.72

Employee Cost 138.79 105.86

Other Manufacturing Expenses 59.50 50.83

Selling and Admin Expenses 457.37 376.37

Miscellaneous Expenses 60.72 49.89

Preoperative Exp Capitalised 0.00 0.00

Total Expenses 1,352.01 1,246.98

Mar '11 Mar '10

12 mths 12 mths

Operating Profit 254.52 155.77

PBDIT 289.84 209.42

Interest 9.85 6.90

PBDT 279.99 202.52

Depreciation 40.00 33.91

Other Written Off 0.00 0.00


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Mar '11 Mar '10

12 mths 12 mths

Operating Profit 254.52 155.77

PBDIT 289.84 209.42

Interest 9.85 6.90

PBDT 279.99 202.52

Depreciation 40.00 33.91

Other Written Off 0.00 0.00

Profit Before Tax 239.99 168.61

Extra-ordinary items 2.10 0.01

PBT (Post Extra-ord Items) 242.09 168.62

Tax 75.44 49.01

Reported NET PROFIT 166.03 118.38


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Balancesheet - Philips India Limited (all figures in crores)

Particulars Mar'11 Mar'10

Liabilities 12 Months 12 Months

Share Capital 10.40 10.40

Reserves & Surplus 777.49 653.76

Net Worth 790.25 666.52

Secured Loans 225.52 114.55

Unsecured Loans 0.00 0.00

TOTAL LIABILITIES 1,015.77 781.07

Gross Block 499.11 427.42

(-) Acc. Depreciation 215.74 181.43Net Block 281.01 243.63

Capital Work in Progress. 190.51 72.97

Investments. 323.14 194.86

Inventories 349.20 360.15

Sundry Debtors 45.39 49.29

Cash And Bank 51.50 34.10

Loans And Advances 132.54 116.53

Total Current Assets 578.63 560.07

Current Liabilities 271.43 225.32

Provisions 88.45 67.49

Total Current Liabilities 359.87 292.81

NET CURRENT ASSETS 218.75 267.25

Misc. Expenses 0.00 0.00TOTAL ASSETS 1,015.77 781.07


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Cash flow statements

Mar ' 11 Mar ' 10

Profit before tax 241.47 167.40

Net cashflow-operating activity 251.34 73.78

Net cash used in investing activity -307.73 -51.23

Netcash used in fin. Activity 73.79 -5.94

Net inc/dec in cash and equivlnt 17.41 16.60

Cash and equivalnt begin of year 34.10 17.60

Cash and equivalnt end of year 51.50 34.21


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Basics cash flow ststementAll figures in Rs. crore(s)

Attribute

Profit before tax

Net cashflow-operating activity

Net cash used in investing activity

Netcash used in fin. Activity

Net inc/dec in cash and equivlnt

Cash and equivalnt begin of year

Cash and equivalnt end of year

Mar'10 Mar'11

167.40 241.47

73.78 251.34

-51.23 -307.73

-5.94 73.79

16.60 17.41

17.60 34.10

34.21 51.50


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Ratio analysis of the company of Philips India Limited for theaccounting year 2010-2011

1) Liquidity ratio:

a)current ratio

b)quick ratio

current ratio= current assetcurrent liabilities

= 578.63

359.87 =1.69

Company current ratio is=1.69:1

Interpretation :- for every one rupee of the liability the companyhas current asset worth Rs,1.69


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quick ratio=current asset-inventories

current liabilities

=578.63-349.20

359.87

Company quick ratio is = 0.63

Interpretation:- for every one rupee of current liabilitiesthe company has quick asset worth 0.64, which is bellowthan industrial ratio i. e 1:1


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2)Liverage ratio:

a)debt equity ratio

b)debt asset ratio

a)debt equity ratio= debt

equity= 225.52

790.25

=0.285:1

Interpretation:- for every one rupee of total asset company has

barrowed amount is 0.285, this ratio es better than the industrynorms as 1:1


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b) Debt asset ratio= debt

total asset

= 225.52

1015.77

= 0.222:1

Interpretation:-For every 1 rupee of total asset company has barrowed amount i.e0.222, this ratio is better than the industry norms as 1:1

5) net profit margin ratio = net profitNet sales

= 166.03

1.601.70 *100

= 10.366%

Interpretation:-the company net profit margin on its sales 10.366, which betterthan industry norms as 5%


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6) operating income margin = operating income

Net sales

= 254.521601.70

=0.159

Interpretation:-

7) Debtor turnover ratio: sales

Debtor +bills receivable

= 1.601.70

45.39

=35.287 Interpretation:- for every one time debtors and bills receivable

amount the company has sales 35.287 times, which is grater thanindustry norms as 5 times


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8) Debtor velocity ratio: debtor+bills receivable

Sales/12

=45.39

1.601.70/12

= 45.39

133.48

=0.340 times

Interpretation:-The company has taken 0.3340 months to recover debtor money

9) return on investment ratio: net income

Longterm laibilitt+equty+prefarance

=166.03 *100

225.52+10.40+777.49

= 166.03 *100

1013.41

=16.38%

Interpretation:-the companies return on investment 16.38%, which is better thanindustry return on tnvestment 7%


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10) Total asset turnover ratio:

Net sales

Avg total asset

` = 1601.701015.77

=1.58

Interpretation:-the companies asset turnover ratio is better, the companyeffectively used the ratio i.e 1.58

11) Fixed asset turnover ratio:

Net sales

Net fixed asset

= 1601.70

281.01

5.70


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12) Return on networth:

= Net income

equity

= 166.03 *100

10.40+777.03

= 166.03 *100

787.43

= 21.09%

Interpretation:- the return on networth of the company is 21.09%,which is better than company norms as 7%


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13) Net asset turnover ratio:

= Net sale

Net current asset

= 1601.70

218.75

7.32

Interpretation:-

Documents

Philips India Limited