Annual Report 2001-2002

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GODREJ INDUSTRIES LIMITED – FINANCIAL HIGHLIGHTS
(Rs. lac)
2001-02 2000-01 1999-00 1998-99 1997-98
BALANCE SHEET
SOURCES OF FUNDS :
Shareholders’ Funds
Share Capital 3699 5979 5979 6313 6514
Reserves & Surplus 21030 27559 25679 22051 26206
Loan Funds
Secured Loans 15051 16701 22375 33312 26120
Unsecured Loans 13456 9547 11881 13131 18718
Deferred Tax Liability 1347
54583 59786 65914 74807 77558
APPLICATION OF FUNDS :
Fixed Assets 29099 33799 32815 32309 32970
Investments 14619 17075 19043 24081 23180
Net Working Capital 9987 8076 12666 17489 18886
Miscellaneous Expenditure 878 836 1390 928 2522
54583 59786 65914 74807 77558
INCOME AND PROFIT FIGURES
Total Income 53465 79786 71620 90981 71796
Expenditure other than Interest and Depreciation 43408 65935 57218 85894 62268
Profit before Interest, Depreciation and Tax 10057 13851 14402 5087 9528
Interest (net) 3218 3711 4774 5976 6594
Profit/ (Loss) before Depreciation and Tax 6839 10140 9628 (889) 2934
Depreciation 2154 2531 2342 2104 1971
Profit/ (Loss) before Tax and exceptional items 4685 7609 7286 (2993) 963
Exceptional items- expense 624 3194 547 — —
Provision for Current Tax 150 350 641 — 110
Net Profit/(Loss) after Tax 3911 4065 6098 (2993) 853
Provision for Deferred Tax 923 — –– –– ––
Adjustment in respect of prior years -(Income)/Expense (121) (25) (90) 383 (708)
Net Profit/(Loss) after taxes and adjustments 3109 4090 6188 (3376) 1561
Note : The figures for 2001-02 are not comparable with those of the previous years in view of the schemes of arrangement with Godrej Consumer Products Limited and Godrej Foods Limited, details of which have
been given in the Management Discussion and Analysis and in the Directors' Report

Total Income 2001-2002 Total Expenditure 2001-2002

Break-up of Total Expenditure
Break-up of Total Income Rs. Lac
Rs. Lac Materials 29821
Chemicals 35935

Foods 9095 Staff Costs 5627

Estate Management 2178

Depreciation 2154
Processing Charges 2737
Medical Diagnostics 515
Interest 3218
Income from Mfg. & Other Business
Operations 734
Income from Financial operations 2113
Other Operating Expenses 7960
Others 158

Total 53465 Total 48780

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Godrej Industries Limited
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MANAGEMENT DISCUSSION AND ANALYSIS
Financial Risk Ratios
An Overview
2001-02 2000-01
It has been an eventful year for Godrej Industries Limited (GIL).The Consumer Products
Division (CPD) was carved out to form Godrej Consumer Products Limited (GCPL), a Debt/Equity 1.17 0.80
focused FMCG company, with effect from April 1, 2002 and the residual entity which Interest coverage 2.45 3.05
retained the Chemicals, Estate, medical diagnostics, financial operations, etc., was renamed
The figures for the previous year are inclusive of Consumer Products Business, but
Godrej Industries Limited.
without Manufacturing Business of Godrej Foods Limited. The figures for the year under
The year also saw another restructuring wherein the manufacturing business of Godrej review include figures of Manufacturing Business of Godrej Foods Limited w.e.f. June
Foods Limited, together with its marketing, sales, finance and other related functions was 30, 2001 but do not include figures of Consumer Products Business. Hence the figures
de-merged and made part of GIL as its Foods Division effective June 30, 2001. are not comparable.
2001-02 saw the lowest rate of Industrial growth witnessed in the country during the
past several years and the Index of Industrial Production grew by just 2.7%. Segment-wise performance
We give below the segment-wise break-up of sales, PBIT and capital employed for the
Financial Performance year under review:
The financial performance of the Company during the year as compared to that of the (Amounts in Rs. lac)
previous year is summarised below:
1. Segment Revenue (Income from Operations)

Abridged Profit and Loss Account of GIL for the year 2001-02 Chemicals 38930

(in Rs. lac) Foods 9652

2001-02 2000-01 Estate Management 2178

Sales of products and services 51195 78172 Others 2650

Other Income 2270 1614 Total 53410

Total income 53465 79786 2. Segment Results (Profit before Interest & Tax)

Material costs 29821 39514 Chemicals 4612

Staff costs 5627 6020 Foods 1219

Other expenditures 7960 20401 Estate 1649

Total expenditure 43408 65935 Others 679

Profit Before Depreciation, Interest and Tax 10057 13851 Profit Before Interest and Tax 8159

Depreciation 2154 2531 Less: Interest (Net) (3218)

Profit Before Interest and Tax 7903 11320 Unallocated expenses (Net), Prior period items (880)

Interest and financial charges (net) 3218 3711 Profit Before Tax 4061

Profit Before Tax (before exceptional items) 4685 7609 3. Segment Capital Employed

Exceptional items (624) (3194) Chemicals 27896

Profit Before Tax 4061 4415 Foods 6160

Provision for Current Tax 150 350 Estate 1867

Profit after Current Tax 3911 4065 Others 18458

Provision for Deferred Tax 923 - Unallocated Assets 572

Adjustments in respect of prior years – net income 121 25 Total 54953

Profit After Tax 3109 4090

CHEMICALS DIVISION
GIL’s total income for 2001-02 was Rs. 53,465 lac as compared to Rs. 79,786 lac in Sales of the division grew 9 % in value and 17% in volume terms.
the previous year. The Chemicals business won the BEST BUSINESS AWARD for 2001-02, within the
GIL generated a Profit Before Tax (PBT) of Rs.4061 lac and a Profit After Tax of Rs. Godrej Group of Companies. It also won the “CHEMEXCIL AWARD” from Basic
3109 lac in 2001-02. Chemicals, Pharmaceuticals and Cosmetics Export Promotion Council for 2000-01
for the third year in succession.
Profitability ratios (%)
2001-02 2000-01 Industry Outlook:

PBDIT/Sales 14.28 13.42 The Chemicals Division operates in the Oleo-Chemicals Industry.

PBT/Sales 7.93 5.65 On the supply side, weather conditions (factors like El Nino), demand for edible oils for
human consumption, oilseed production, etc., affect the availability and price of vegetable
PAT/Sales 6.07 5.23 oils. On the demand side, the growth of the end-user industries like detergents, industrial
Return on Capital Employed 14.61 19.20 applications, cosmetics and personal care, etc. affect the volume and profitability of the
Return on Net Worth 12.84 12.51 sales of this division.

Basic EPS * (Rs.) 5.08 6.84 To mitigate the risks of this industry, the Division has been concentrating on efficient
sourcing and coverage of raw materials, de-bottlenecking and improving efficiencies in the
Diluted EPS * (Rs.) 5.08 6.84
manufacturing operations, and providing customized products to the end-users, to
* Face value per share reduced from Rs.10/- to Rs. 6/- w.e.f. April 1, 2001. reduce costs and improve profitability.

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