Continue with the case of ITC Ltd. Analyse its results to examine the chronological performance of the company and assess the 2003–04 EPS. Attempt the following requirements towards this purpose.
Requirements

1. Could you imagine why the net sales turnover of the company is almost half of the gross income? Reason out.
2. Compute the following ratios:

∎ Materials Consumed to Net Income

∎ Staff Cost to Net Income

∎ Other Expenditures to Net Income

∎ Interest to Net Income

∎ Depreciation to Net Income

∎ PBT to Net Income

∎ Provision for Taxation to Net Income

∎ Net Profit Margin

For:
∎ The year ended 31.03.2003

∎ 9 months ended 31.12.2003 and 2002

∎ Quarter ended 31.12.2003 and 2002 and comment on the chronological developments in the performance of the company.

3. Annualize the quarterly and 9-month EPS. Do you expect a better EPS for 2003–04 over 2002–03? In what range? Why?

4. Who is the biggest gainer among all the stakeholders of ITC? How?

5. Draft a crisp 2-page report.