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INTRODUCTION
(Company was incorporated as a public limited company under the Indian Companies Act, 1913 as Consolidated Coffee Estates (1943) Limited on 19th November 1943. The name of the Company was changed to Consolidated Coffee Limited w.e.f. 12th June 1967 and was further changed to Tata Coffee Limited w.e.f. 11th August, 2000 and a fresh Certificate of Incorporation was obtained from the Regist of Companies, Karnataka, Bangalore)
COMPANY OVERVIEW
The Company is a Public Limited Company and is a subsidiary of Tata Tea Limited. The Companys activities range from growing of coffee and tea to the manufacture and marketing of value added coffee products including roasted and ground coffee and instant coffee besides timber value added operations. The coffee operations of the Company are concentrated in the southern part of Karnataka i.e., Coorg, Hassan and Chikmagalur Districts. The Company owns 18 coffee estates and 7 tea estates having an aggregate acreage of 31613 Acres. These include the recent acquisition of the Tata Tea Limited Estates in Anamalais. Apart from coffee, pepper and cardamom is also grown onits estates as inter-crops. The Company is one of the largest exporters of coffee beans. The Company has a curing works, pepper processing unit and a roasting & grinding plant at Kushalnagar. The Company also deals in plantation requirements such as fertilizers, chemicals and estate equipment. The Company has timber reserves, which are used as a shade for coffee plantations. As part of its plans to optimize the utilization of its captive timber resources, the Company has embarked into Timber Value-Addition, the focus being on moving up the value chain. Tata Coffee is also one of the largest exporters of instant coffee from India. The Company has two instant coffee manufacturing facilities one in Toopran, Andhra Pradesh and the other at Theni, Tamil Nadu both of which are 100% EOUs. The Company grows coffee in its own estates , processes the beans, exports green coffee and retails coffee under its own brands in the domestic market. Its activities range from the growing and curing of coffee to the manufacture and marketing of value-added coffee products. The Company is present in all segments of the product matrix. It has brands like Mr. Bean in the premium filter coffee market, Tata Caf and Tata Kaapi in the Institutional segment and Mysore Gold and International Tata Caf in the Instant coffee export segment. The Companys out of home initiatives include the Jiffy vending machines.
BOARD OF DIRECTORS
y y y y y y y y y y
R.K. Krishna Kumar (Chairman) R. Govindarajan P.T. Siganporia U.M. Rao Prof. A. Monappa Ms. Sangeeta Talwar Venu Srinivasan S. Santhanakrishnan T. V. Alexander Hameed Huq (Managing Director)
Fixed assets
Fixed Assets are stated at cost less depreciation. Interest on qualifying assets (i.e. Assets that take substantial time to be ready for intended use) is capitalized at the applicable borrowing cost on the funds used for acquiring such assets. Roll over charges, and exchange differences, relating to foreign currency borrowing attributable to Fixed Assets are capitalized upto 31.03.2007 and charged to P&L Account afterwards. The Fixed assets are tested
for impairment and wherever required,provision is made.
Depreciation on Fixed Assets is provided at the rates stated in Schedule XIV of the Companies Act, 1956, on written down value method except that Fixed Assets at Instant Coffee Division, Anamallais, Corporate Office and certain Fixed Assets at the Curing Works under the straight-line method. Leasehold improvements are being depreciated over the lease period. In respect of certain assets, depreciation has been provided at the rates arrived at based on its estimated useful life or as per the Rates prescribed in Schedule XIV whichever is higher. (Refer Schedule 4) Increase in value of Fixed Assets upto 31.03.2007 due to Foreign exchange fluctuations is depreciated over the balance residual life of the Asset.
Valuation of Inventories
Valuation of Stock is dealt as under: - Raw Materials and Stores & Spares At weighted average cost - Coffee, Instant Coffee, Tea, Pepper, Plywood and Trading Stock. At lower of cost and net realizable value. - Work-in-Progress At lower of cost and net realizable value. - Cardamom and Other Produces At since realized/estimated realizable value.
LOAN FUND
Secured loans Unsecured loans
32815.71 10267.12 22548.59 770.32 23318.91 14,677.62 11,674.88 2,502.20 2,024.21 125.06 6,980.24 23,306.59
32570.61 9306.99 23,263.62 1110.51 24,374.13 14,677.62 12,545.97 2,663.63 945.82 91.87 7,030.80 23,278.09
(A)
(B) (A-B)
PROFIT AND LOSS ACCOUNT (FOR THE YEAR ENDED 31ST MARCH 2010)
2009 (Rs.In lakh) 31309.31 88.11 2457.42 931.23 33678.62 34123.99 1222.29 (4508.26)
Other Incomes
TOTAL EXPENDITURE
Depreciation Accretion)/ Decretion of Stock
Dividends :
Final(proposed) Tax on Dividend
Surplus carried to Balance Sheet Significant Accounting Policies / Notes on Accounts EPS - Basic & Diluted (on Rs.10 per Share)..................... (Refer Note B 15 of Schedule 12)
yIt indicates what proportion of the permanent capital of a firm consists of long-term Debt. yA ratio 1:2 is considered Safe. yIt measures the share of the total assets financed By outside funds. yA low ratio is desirable for
creditors. yIt shows what portion of the total assets is financed by the owners capital yA firm should neither have a high ratio nor aLow ratio. Gross Profit margin = Gross profit* 100 Sales yIt measures the profit in relation to sales. yA firm should neither have a high ratio nor a low ratio. yIt measures the profitability of the total funds per investment of a firm.
Return on Assets (ROA) = Net Profit after Taxes * 100 Net worth
Return on Capital Employed (ROCE) = (Net Profit after Taxes) * 100 capital employed
yIt measures profitability of the firm with respect to the total Capital employed. yThe higher the ratio, the more efficient use of capital employed
Earnings per Share (EPS) = Profit after tax Number of equity Shares
It measures the profit available to the equity holders on a per share basis
Higher the ratio, more efficient is the firm in utilizing Its assets.
Sl. No 01.
Ratios
Values
Remarks
It is satisfactory
It is satisfactory
03.
It is not good.
04.
0.41 Times
Its good.
05
37.23 %
It is satisfactory.
6.
18.90%
It is not satisfactory
7.
It is not good.
8.
It is good.
9.
It is safe.
It is not satisfactory
11.
It is not good.
12.
0.05 Times
Its good.
It is satisfactory