PHILIPS INDIA LIMIDED

PRESENTED BY ARUN KUMAR K G

PHILIPS INDIA LIMITED

 Company Profile: Royal Philips Electronics Royal 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.

(contd) Headquartered in the Netherlands, Philips employs approximately 119,000 employees in more than 60 countries worldwide.

(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 lighting solutions and new lighting applications, as well as lifestyle products for personal well-being

History of the company

 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.

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 with global leadership positions in key markets of Healthcare, Lighting and Consumer Lifestyle, addressing peoples Health and wellbeing needs and aspirations as its overarching theme.

 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.

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

Lighting Philips Electronics India, Indias largest lighting company operates in business areas of Lamps, Luminaires, Lighting Electronics, Automotive and Special Lighting. 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 in India. This was its third such unit in the world.

 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

Profit and loss account (in crores)

Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses

mar-11
3,069.38 1,467.68 1,601.70 35.32 4.83 1,641.85 626.18 9.45 138.79 59.50 457.37

mar-10
2,617.01 1,213.86 1,403.15 53.65 -0.40 1,456.40 655.31 8.72 105.86 50.83 376.37

Miscellaneous Expenses
Preoperative Exp Capitalised Total Expenses

60.72
0.00 1,352.01 Mar '11 12 mths

49.89
0.00 1,246.98 Mar '10 12 mths 155.77 209.42 6.90 202.52 33.91 0.00

Operating Profit PBDIT Interest PBDT Depreciation Other Written Off

254.52 289.84 9.85 279.99 40.00 0.00

Mar '11

Mar '10

12 mths

12 mths

Operating Profit PBDIT Interest PBDT Depreciation Other Written Off

Profit Before Tax
Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported NET PROFIT

254.52 289.84 9.85 279.99 40.00 0.00

239.99
2.10 242.09 75.44 166.03

155.77 209.42 6.90 202.52 33.91 0.00

168.61
0.01 168.62 49.01 118.38

Balancesheet - Philips India Limited

Particulars Liabilities Share Capital Reserves & Surplus Net Worth Secured Loans Unsecured Loans TOTAL LIABILITIES Gross Block (-) Acc. Depreciation Net Block Capital Work in Progress. Investments. Inventories Sundry Debtors Cash And Bank Loans And Advances Total Current Assets Current Liabilities Provisions Total Current Liabilities NET CURRENT ASSETS Misc. Expenses TOTAL ASSETS

(all figures in crores)

Mar'11 12 Months 10.40 777.49 790.25 225.52 0.00 1,015.77 499.11 215.74 281.01 190.51 323.14 349.20 45.39 51.50 132.54 578.63 271.43 88.45 359.87 218.75 0.00 1,015.77 Mar'10 12 Months 10.40 653.76 666.52 114.55 0.00 781.07 427.42 181.43 243.63 72.97 194.86 360.15 49.29 34.10 116.53 560.07 225.32 67.49 292.81 267.25 0.00 781.07

Cash flow statements

Mar ' 11 Mar ' 10
Profit before tax Net cashflow-operating activity Net cash used in investing activity Netcash used in fin. Activity 241.47 251.34 -307.73 73.79 167.40 73.78 -51.23 -5.94

Net inc/dec in cash and equivlnt

Cash and equivalnt begin of year Cash and equivalnt end of year

17.41
34.10 51.50

16.60
17.60 34.21

Basics cash flow ststement

All figures in Rs. crore(s)

Attribute Profit before tax Net cashflow-operating activity Net cash used in investing activity

Mar'10 167.40 73.78 -51.23

Mar'11 241.47 251.34 -307.73

Netcash used in fin. Activity Net inc/dec in cash and equivlnt Cash and equivalnt begin of year Cash and equivalnt end of year

-5.94 16.60 17.60 34.21

73.79 17.41 34.10 51.50

 Ratio analysis of the company of Philips India Limited for the accounting year 2010-2011 1) Liquidity ratio: a)current ratio b)quick ratio current ratio= current asset current liabilities = 578.63 359.87 =1.69 Company current ratio is=1.69:1

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

 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 liabilities the company has quick asset worth 0.64, which is bellow than industrial ratio i. e 1:1

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 industry norms as 1:1

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.e 0.222, this ratio is better than the industry norms as 1:1

5) net profit margin ratio = net profit Net sales

= 166.03 1.601.70 *100

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

 6) operating income margin = operating income Net sales = 254.52 1601.70

=0.159
Interpretation: 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 than industry norms as 5 times 7) Debtor turnover ratio:

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 than industry return on tnvestment 7%

 10) Total asset turnover ratio: Net sales Avg total asset

= 1601.70 1015.77 =1.58 Interpretation:-the companies asset turnover ratio is better, the company effectively used the ratio i.e 1.58
11) Fixed asset turnover ratio: Net sales Net fixed asset = 1601.70 281.01

5.70

 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%

 13) Net asset turnover ratio: = Net sale Net current asset

= 1601.70 218.75

7.32
Interpretation:-