Scribd
Upload
82 views2 pages

Analyzing Balance Sheet of Nestle India LTD

Nestle India Ltd's 2020-21 balance sheet shows non-current assets make up 66.5% of total assets and current assets are 33.3%. Property, plant and equipment, which increased from the previous year, represents around 50% of non-current assets and 30% of total assets. Inventories make up 20% of total assets. Equity is 25% of total liabilities while creditors represent 20%. The profit and loss statement indicates total income increased while costs of materials consumed were 52.5% of expenses. Profit before tax decreased by 25.7% after taxes. The cash flow statement shows operating profit before changes in working capital increased 4% year-over-year, while cash from

Uploaded by

Prashant Barve
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
82 views2 pages

Analyzing Balance Sheet of Nestle India LTD

Nestle India Ltd's 2020-21 balance sheet shows non-current assets make up 66.5% of total assets and current assets are 33.3%. Property, plant and equipment, which increased from the previous year, represents around 50% of non-current assets and 30% of total assets. Inventories make up 20% of total assets. Equity is 25% of total liabilities while creditors represent 20%. The profit and loss statement indicates total income increased while costs of materials consumed were 52.5% of expenses. Profit before tax decreased by 25.7% after taxes. The cash flow statement shows operating profit before changes in working capital increased 4% year-over-year, while cash from

Uploaded by

Prashant Barve
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Analyzing Balance Sheet of Nestle India Ltd. for the year 2020 21.

1. Out of total assets i.e., ₹ 82,099.3 million, ₹54,711.7 million i.e., around 66.5% consists of non -
current assets and 27,387.6 i.e., 33.3% consists of current assets.

2. Fixed assets have increased as compared to previous year. This There might be two
reasons behind it.
a. The company wants to automate its production line further and hence investing in modern
machinery.
b. Company might have opened a new factory/ production unit resulting into increased fixed
assets and resulting in decreased capital W-I.-P.

3. Property, Plant and Equipment holds approximately 50% of non-current assets. It has risen from
It means the company and around 30% of total assets. As it is an FMCG company, factories and
machinery plays a major role in manufacturing process and this is a good amount to gain future
profits

4. Inventories consists of around 20% of the total Assets. This includes the raw material, work-in-
progress and also the finished goods.

5. Equity consists of around 25% of the total liabilities.

6. Around 20% is towards creditors. This might either mean that Nestle has a longer credit period
or it has not paid it’s creditors on time.

P&L

1. Out of total income, domestic & sales consists of ₹1,39,941.5 million and export sales consists of
₹6,395.7 million

2. Total income when compared to past year has increased from 1,34,958.8 to 1,48,295.2

3. Out of total expenses approx 52.5% consists of cost of materials consumed.


4.Profit before tax is ₹28,837.7 million21,448.6 i-e. tax has decreased the profit amount by 25.7%

5. Profit after tax is 21,448.6 i.e. tax has decreased the profit amount by 25.7%

6. Total comprehensive income 19,934.5

7. Profit from operations is 32,547.5

Cash flows

1. Operating profit before changes in working capital is ₹31,522.1 million It has increased by
approximately 4% when compared to last year.

12 Cash generated from operations is ₹29,999.7 million and it decreased to ₹ 22,713.7 million after
income taxes being paid. i.e. not cash from operation activities is ₹22, 713.7 million .It has decreased by
approximately 7.5% when compared to last year

3. Cash generated from investing activities ₹19,570.4 million out of which 70% consists of investment
last year 10 Insurance plan. It was ₹3,214.6 million

4. Cash generated from financing activities is ₹20186.3 million. It is has risen by approximately 3.4%
when compared to last year.

s. There is decrease in cash and cash. equivalents of ₹ 17,043 million (Negative figure), whereas there
was an increase of ₹ 1771.3 million (positive figure)

You might also like