A PROJECT ON

BRITANNIA
IN THE SUBJECT
ADVANCED FINANCIAL ACCOUNTING
SUBMITTED BY
NAME: SOUMEET D. SARKAR
ROLL NO.: 041
DIVISIONS: A

UNDER THE GUIDANCE OF

PROF. BHARAT PATEL
TO
UNIVERSITY OF MUMBAI FOR
MASTER OF COMMERCE PROGRAMME (SEMESTER - I)
YEAR: 2013-14

SVKMS
NARSEE MONJEE COLLEGE OF COMMERCE &ECONOMICS
VILE PARLE (W), MUMBAI 400056.

EVALUATION CERTIFICATE

This is to certify that the undersigned have assessed and evaluated the
projectBRITANNIAonsubmitted by student of M.Com. Part - I (Semester I)
for the academic year 2013-14. This project is original to the best of our
knowledge and has been accepted for Internal Assessment.

Name & Signature of Internal Examiner

Name & Signature of External Examiner

PRINCIPAL
Shri. Sunil B. Mantri

DECLARATION BY THE STUDENT

I, student of M.Com. (Part I) Roll No.:041 hereby declare that the project
titledBRITANNIA forsubject ADVANCEDthe FINANCIAL
ACCOUNTING submitted by me for Semester I of the academic year 201314, is based on actual work carried out by me under the guidance and supervision
of PROF. BHARAT PATEL. I further state that this work is original and not
submitted anywhere else for any examination.

Place: MUMBAI.
Date:

(SOUMEET D. SARKAR)
Name & Signature of Student
3

ACKNOWLEDGEMENT
It is indeed a great pleasure and proud privilege to present this project
work.
I thank my project guide and M-COM co-ordinator of

SVKM

MONJEE COLEGE OF COMMERCE AND ECONOMICS, VILE PARLE

(WEST). Their co-operation and guidance have helped me to complete this project.

I would

sincerely like to

thank

the principal of

B.Mantri

for his support and guidance.

I would

also like to thank the

college library and

our college Shri.Sunil

its staff for patiently

listening and guiding me and finally. I would like to thank my family and friends
who supported me in this project.
THANK YOU.

CONTENT
Sr. No.

PARTICULARS

Page No.

CHAPTER I INTRODUCTION
1.1

Company Information

1.2

Major Players & Market Share

1.3

Pricing & Cost Sheet

1.4

Milestones Achieved

11

1.5

Products Available

18

1.6

Product Information

12

CHAPTER II DATA ANALYSIS & COLLECTION

2.1

Balance Sheet

23

2.2

Profit & Loss A/c

25

2.3

Statement of Cash Flow

27

2.4

Comparative Balance Sheet

30

2.5

Comparative Profit & Loss A/c

32

2.6

Significant Ratios

34

CHAPTER IV CONCLUSION
4.1

Comments

37

4.2

Conclusion

40

4.3

Biblography

42

INTRODUCTION:The story of one of India's favourite brands reads almost like a fairy tale. Once upon a time, in
1892 to be precise, a biscuit company was started in a non-descript house in
Calcutta (now Kolkata) with an initial investment of Rs. 295. The company we all know
as Britannia

today. Initially,

biscuits were manufactured in

a small house in central

Kolkata. Later, the enterprise was acquired by the Gupta brothers mainly Nalin Chandra
Gupta,

a renowned

attorney, and operated under the name of " V . S . Brothers ". In

C.H. Holmes,

an English businessman in Kolkata, was taken on as a partner and

the Britannia Biscuit

Company Limited (BBCo) was launched. The Mumbai factory was

set up

Peek Freans UK, acquired a controlling interest in BBCo. Biscuits

1918,

in 1924 and

were in big demand during World War II, which gave a boost to the companyssales. The company
name finally was changed to the current "Britannia Industries Limited" in 1979. In 1982 the
American company Nabisco Brands Inc. became a major foreign shareholder.

The beginnings might have been humble the dreams were anything but. By 1910, with
the advent of electricity, Britannia mechanised its operations, and in 1921, it became the
first company east of the Suez Canal

to use imported gas ovens. Britannia's business

was flourishing. But, more importantly,

Britannia was acquiring a reputation for quality

and value. As a result, during the tragic

World War II, the Government reposed its trust

in Britannia by contracting it to supply large quantities of "service biscuits" to the armed forces.

As time moved on, the biscuit market continued to grow and Britannia grew along with
it. In 1975, the Britannia Biscuit Company took over the distribution of biscuits from
Parry's who till now distributed Britannia biscuits in

India. In the subsequent public issue

of 1978, Indian shareholding crossed 60%, firmly

establishing the Indian-ness

of the

firm. The following year, Britannia Biscuit Company was

re-christened Britannia

Industries Limited (BIL). Four years later in 1983, it crossed the

Rs. 100 crores revenue

mark.

On the operations front, the company was making equally dynamic strides. In 1992, it celebrated
its Platinum Jubilee. In 1997, the company unveiled its new corporate identity - "Eat Healthy,
Think Better" - and made its first foray into the dairy products market. In 1999, the "Britannia
Khao, World Cup Jao" promotion further fortified the affinity consumers had with 'Brand
Britannia'.
Britannia strode into the 21st Century as
eminent food brand of the country. It was

one of India's biggest brands and the preequally recognised for its innovative approach

to products and marketing. The Lagaan Match was voted India's most successful promotional
activity of the year 2001 while the delicious Britannia 50-50 Maska-Chaska
became India's most

successful product launch. In 2002, Britannia's New Business

Division formed a joint venture with Fonterra, the world's second largest Dairy Company,
and Britannia New Zealand Foods Pvt. Ltd. was born. In recognition of its vision and
accelerating graph, Forbes Global rated Britannia 'One amongst the Top 200 Small Companies of
the World', and The Economic Times pegged Britannia India's 2nd Most
Trusted Brand.
Today, more than a century after those tentative first steps,

Britannia's fairy tale is not

only going strong but blazing new standards, and that miniscule initial investment
grown by leaps and bounds to crores of rupees in wealth

has

for Britannia's shareholders.

The company's offerings are spread across the spectrum with products ranging from the healthy
and economical Tiger biscuits to the more lifestyle-oriented Milkman Cheese.
Having succeeded in garnering the trust of almost one-third of India's one billion
population and a strong management at the helm means Britannia will continue to dream big on
its path of innovation and quality and millions of consumers will savour the results. At present ,
the company is growing at a steady rate, and is currently profitable. Between 1998 and 2001, the
company's sales grew at a compound annual rate of 16% against the market, and operating
profits reached 18%. More recently, the company has been growing at 27% a year, compared to
the industry's growth rate of 20%. At present, 90% of Britanniasannualrevenue of Rs.22 billion
comes from biscuits. Britannia is one of India's 100 Most Trusted brands listed in THE BRAND
TRUST REPORT.
7

Major Players in the Industry:1) BRITANNIA INDUSTRIES LTD. (BIL)

2) PARLE
3) ITC Ltd.
4) Surya Foods & Agro Ltd. (PRIYA GOLD)

Market Share:-

MARKET SHARE

BRITANNIA
PARLE
OTHERS

PRICING of the product has played an important role for the company to achieve a major
market share. For pricing company has taken into factors like fixed and variable costs,
competition, company objectives, proposed positioning strategies, target group and
willingness to pay. The pricing strategies adopted are:1) Competition Pricing:- They have set a price which is competitive when
compared with competitors.
2) Product Line Pricing:- Priced different products within the same product range at
different price points. The better the feature and the benefit given the greater the
consumer will pay. This form of price discrimination assists the company in
maximizing turnover and profits.
3) Bundle Pricing:- The organisation bundles a group of products at a reduced price
when providing family packs.
4) Value Pricing:- They have also used value based pricing.
Britannia has worked a lot on fixing the price of its biscuits. It has packaged its
products in various sizes and at various prices. Its biscuits ranges from Rs.10 to Rs.20.

Cost Sheet:-

Particulars

Rs.

Cost of Production

1.00

Company Profit

1.50

Packaging

0.50

Promotion

2.00

Transportation

1.00

Selling and Distribution

1.75

Cost to Distributor

7.75

Distributors Profit

0.75

Cost to Wholesaler

8.50

Wholesaler Profit

0.50

Retailer Cost

9.00

Retailer Profit

1.00

MRP

10.00

10

MILESTONES ACHIEVED:-

1892

1. The Genesis - Britannia established with an investment of Rs. 295 in

Kolkata.

1910

2. Advent of electricity sees operations mechanized.

1921

3. Imported machinery introduced; Britannia becomes the first company

east of the Suez to use gas ovens.

1939 -

4. Sales rise exponentially to Rs.16,27,202 in 1939.

44

5. During 1944 sales ramp up by more than eight times to reach

Rs.1.36 crores.

1975

6. Britannia Biscuit Company takes over biscuit distribution from

Parry's.

1978

7. Public issue - Indian shareholding crosses 60%.

1979

8. Re-christened Britannia Industries Ltd. (BIL).

1983

9. Sales cross Rs.100 crores.

1989

10. The Executive Office relocated to Bangalore.

1992

11. BIL celebrates its Platinum Jubilee.

1993

12. Wadia Group acquires stake in ABIL, UK and becomes an equal

partner with Group Dan-one in BIL.

1994

13. Volumes cross 1,00,000 tons of biscuits .

11

1997

14. Re-birth new corporate identity 'Eat Healthy, Think Better' leads to

new mission: 'Make every third Indian a Britannia consumer'.

15. BIL enters the dairy products market.

1999

16. "Britannia Khao World Cup Jao" - a major success profi t up by

37%.

2000

17. Forbes Global Ranking - Britannia among Top 300 small

companies.

2001

18. BIL ranked one of India's biggest brands.

19. No.1 food brand of the country.
20. Britannia Lagaan Match: India's most successful promotional
activity of the year.

21. Maska Chaska: India's most successful FMCG launch.

2002

22. BIL launches joint venture with Fonterra, the world's second largest
dairy company.

23. Britannia New Zealand Foods Pvt. Ltd. is born.

24. Rated as 'One amongst the Top 200 Small Companies of the
World' by Forbes Global.

25. Economic Times ranks BIL India's 2nd Most Trusted Brand.
26. Pure Magic - Winner of the World star, Asia star and India star
award for packaging.

2003

27. 'Treat Duet'- most successful launch of the year.

28. Britannia Khao World Cup Jao rocks the consumer lives yet again.

2004

29. Britannia accorded the status of being a 'Superbrand'.

30. Volumes cross 3,00,000 tons of biscuits.
12

31. Good Day adds a new variant Choco-nut in its range.

2005

32. Re-birth of Tiger - 'Swasth Khao, Tiger Ban Jao' becomes the
popular chant.

33. Britannia launched 'Greetings' range of premium assorted gift

packs.

34. The new plant in Uttaranchal, commissioned ahead of schedule.

35. The launch of yet another exciting snacking option - Britannia 50-50
Pepper Chakkar.

2006

36. Britannia re-launched Nutri-Choice Hi-Fibre Digestive biscuits in an

international large sized biscuit pack.

37. Britannia acquires 51% stake in Bangalore based bakery foods

retailer Daily Bread.

2007

38. Britannia industries formed a joint venture with the Khimji Ramdas
Group and acquired a 70% beneficial stake in the Dubai based
Strategic Foods International Co. LLC and 65.4% in the Oman
based Al Sallan Food Industries Co.

39. Britannia Nutri-Choice Sugar out range introduced - 1st of its kind
of biscuits to be launched in India with "No Added Sugar"
(Variants - Chocolate Cream, Orange Cream, and Lite-time).

2008

40. Britannia Nutri-Choice 5 Grain biscuits launched - Biscuits with

the goodness of 5 health cereals, and sweetened with natural honey.
Britannia Nutri-choice promised consumers "Bhook Bhagao, Kuch
Healthy Khao".

41. Britannia launched Iron fortified 'Tiger Banana' biscuits, 'Good

Day Classic Cookies' , Low Fat Dahi and renovated ' Marie-Gold'.

2009

42. Britannia launches Acti-Mind A first of its kind milk based health
13

drink for kids, which helps improve mental sharpness. Launch of ActiMind marked Britannia's entry into the beverage segment and has
further extended its creed of 'Eat Healthy, Think Better' to 'Drink
Healthy, Think Better' as well.
43. Britannia Nutri-Choice Nature Spice Crackers launched - Your
favorite Cream Crackers, now made even more exciting with the
addition of Sabut, Ajwain and Jeera spices.
44. Britannia takes full control of Daily Bread.
45. Britannia Industries buys out New Zealand's Fonterra from existing
dairy joint venture, Britannia New Zealand Foods (BNZF).
BNZF became a 100% Britannia subsidiary and was renamed
Britannia Dairy Private Limited (BDPL).
46. Recognizing the changing global trends & health benefits of removing
trans-fats, Britannia is the first bakery brand in India to remove transfats from its products.
47. Wadia Group acquired stake holdings from Group Dan-one and
becomes the single largest shareholder in BIL.

2010

48. 50-50 Maska Chaska was re-launched with a new masaaledar twist a delightful blend of butter and imported flavours along with
sprinkling of masala in September 2010.

49. Tiger enters the cookies category, with the launch of crunch cookies
in october. These cookies are not only high on de-light but also
high on energy and have been created keeping in mind the needs of
today's kids. These delightful cookies come in two exciting variants Fruit & Nut and Choco-chips and at an affordable price point
of just Rs.5.

50. Brand Nutri-Choice, in keeping with its track record of launching

differentiated healthy snacks, launched diabetic friendly essentials on
1
4

th

14 November, a day that is world over recognized as World Diabetes

Day. The range comprised of 2 variants - Oats cookies and Ragi cookies and is available in top Indian cities.
51. Britannia was presented the Master Brand 2010 Award by CMO
Council in November 2010.
52. Rotary Club of Chennai awarded CSR Award to Britannia in
November, for our work in nutrition.

2011

53. Always committed to constant innovation, Britannia launched

Britannia Healthy Start in Mumbai in January 2011. Specially
designed with Indian tastes in mind, Healthy Start is a complete
range of ready-to-cook breakfast mixes of Upmas, Pohas,
Porridges and Oats that are healthy, delicious, and take just 5
minutes to cook. This is the only product range in its category that
combines the natural nutrition of multi-grains, 100% real vegetables,
pulses and nuts all in one pack.

54. Britannia received the Most Respected Company Award 2011

from Business World.

55. Bourbon received the Most Popular Confectionery Product

Preferred by Youth (Biscuit) Award.

56. IMCRBNQA (Indian Merchant Chambers Ramakrishna Bajaj

National Quality Award) conferred the Manufacturing
Performance Excellence Trophy a National Quality Award for
the 2010 cycle, for Britannia Corporate Office (Bangalore),
Britannia Industries Ltd. (Rudrapur) and Sunandram Foods Pvt
Ltd (Mangaldoi, Guwahati).

57. Britannia further enhanced its foray into healthy milk based drinks
by launching Tiger-Zor Choco milk & Tiger-Zor Badam milk in
May 2011. These are delicious milk based beverages fortified with 5

15

active nutrients that help in the overall development of mind and

body.
58. Britannia Bread launched its new range of Health Breads in Delhi in
November. The range consists of Honey & Oats Bread, Multi-Grain
Bread, 100% Whole Wheat Bread and Multi-Fiber Bread.
59. Delhi factory was adjudged as the winner for Outstanding
Performance in Food Safety Excellence in the category of 'Large
Food Businesses- Manufacturing', by CII. JBM Foods Pvt. Ltd. was
also recognized with Re-commendation Certificate for Strong
Commitment to Excel in the Category of 'Medium Food BusinessesManufacturing' for the year 2011. The awards were given at the CII
National Quality Summit held at Bangalore on
1st December 2011.

60. BRITANNIA was honoured with CREATIVE HR PRACTICES

AWARDby Employer Branding Institute India, on the occasion of 6th
Employer Branding Awards ceremony held on the 10th of December
2011 at Hotel Taj Deccan, Hyderabad.

2012

61. IMC Ramakrishna Bajaj National Quality Award 2011 was

awarded to Britannia Industries Limited, Bangalore, Bidadi, Delhi,
Gwalior & Khopoli in the manufacturing category, at the Fifteenth
IMC Ramakrishna Bajaj National Quality Awards and IMC Juran
Quality Medal ceremony held in Mumbai on 6th April 2012.

62. Britannia Industries Limited Khurda was commissioned on 17th

April 2012.

63. The Modern Trade team of Britannia was honoured with

Winner BEST BAKERY SUPPLIER award for the year 201112 , at the 1st SPENCER'S Best Supplier Awards 2012 on 22nd
June.

16

64. Britannia was awarded the Global Performance Excellence Award

(GPEA) by Asia Pacific Quality Organization (APQO) at the 18th
APQO International Conference on Quality in Colombo, Sri Lanka on
October 14. Britannia won this "Best in Class" award, an international
recognition for its manufacturing units and the overall processes of
performance excellence adopted by the company. Britannia is the only
Indian food and manufacturing company to receive this award.
65. Britannia won Global award given out by 'World Quality
Congress' at their award ceremony at Mumbai held on 22

nd

rd

and 23

November 2012.

2013

66. On the 17th January 2013, Britannia Industries Ltd, Kolkata was
selected the winner of the GOLDEN PEACOCK NATIONAL
QUALITY AWARD for the year 2012 by the awards jury under
the chairmanship of Justice P. N. Bhagwati, former Chief Justice of
India and Member, UN Human Rights Commission.

67. Britannia was awarded "Manufacturing Supply Chain Award for

rd

End to End Customer Solution Excellence" on 23 January 2013

at the Asia Manufacturing Supply Chain Summit (AMSCS) held in
Mumbai.

68. Britannia bagged two National Quality Excellence Awards for

2013 - one for Best End-to-End Customer Solution (Supply
Chain), and the second, for Planning, Processes and Systems - on
th

14

February 2013 at Taj Lands End, Mumbai.

69. Britannia won the Namma Bengaluru Award for 2012, at the
th

award ceremony held on 16 March 2013 in Bengaluru, in the

Corporate Social Responsibility category for initiating and
implementing Solid Waste Management.

17

70. Britannia bagged the prestigious IWLF Award for 'Solid Waste
Management Project' at the International Women Leadership Forum
held in Mumbai on 25th April 2013.

PRODUCTS AVAILABLE:-

GLUCOSE BISCUITS
1) TIGER
2) CHOTA TIGER
3) TIGER CHAI BISKOOT
4) TIGER ROSEMILK CREAM
5) TIGER BRITA ENERGY POPS
6) TIGER CHOCLATE CREAM
7) TIGER ORANGE CREAM
8) TIGER COCONUT ENERGY
9) TIGER ELAICHI CREAM
10) TIGER KESAR CREAM
11) TIGER BANANA

CREAM BISCUITS
1) TREAT CHOCO GELO
2) TREAT DELICIOUS DATES
3) TREAT APPLE PUNCH
4) TREAT FLAVOURED TANGY ORANGE
5) TREAT STRAWBERRY FLAVOURED SURPRISE
6) BOURBORN TREAT
7) TREAT ELAICHI FON
18

8) TREAT JIM JAM

9) TREAT MANGO MISCHIEF
10) TREAT MASTI ORANGE
11) TREAT PINEAPPLE PRANK

NUTRI CHOICE BISCUITS

1) NUTRI CHOICE 5 GRAINS
2) NUTRI CHOICE DIGESTIVE
3) NUTRI CHOICE CREAM CRACKER
4) NUTRI CHOICE THIN ARROWROOT
5) NUTRI CHOICE SUGAROUT CHOCLATE
6) NUTRI CHOICE SUGAROUT LITETIME
7) NUTRI CHOICE SUGAR OUT ORANGE CREAM

MARIE BISCUITS
1) MARIE GOLD
2) VITA MARIE GOLD

MILK BISCUITS
1) MILK BIKIS
2) MILK BIKIS CREAM

GOOD DAY BISCUITS

1) GOOD DAY CHOCONUT
2) GOOD DAY BUTTER SCOTCH
3) GOOD DAY HONEY & RAISIN
4) GOOD DAY CHOCLATE CHIP
19

5) GOOD DAY RICH BUTTER COOKIES

6) GOOD DAY RICH CASHEW COOKIES
7) GOOD DAY RICH PISTA BADAM

50-50 BISCUITS
1) 50-50
2) 50-50 MASKA CHASKA
3) PEPPER CHAKKAR

LITTLE HEARTS
1) LITTLE HEARTS CLASSIC

PURE MAGIC
1) PURE MAGIC

1. 50-50:- Brand name 50-50 launched in 1993, 50-50 because of its "Hatke" taste and
youthful appeal quickly emerged as the leader of category with more than one-fourth of market
share. In 2001, the delicious Maska Chaska was launched as a variant of the original brand and
became an instant success. In 2008, 50-50 sharpened its focus on housewives and positioned as a
snack. 50-50 snacks the latest entry will give housewives one more reason to be happy snack
happy. Being aware of the needs of his consumers,
50-50 snacks comes in three unique international flavors- Italiano Pizza, Swiss cheese & Chilly
and Chinese Hot & Sweet. 50-50 snacks bridges the gap between biscuits & snacks and tries to
bring the best of many worlds - biscuits bhi Snack bhi, Sweet bhi Spicy bhi, Baked bhi
Chatapata bhi. The new product being baked and in bag format allows guilt free snacking both
in and out of home and thus making housewives "Snack happy".

2
0

2. GOOD DAY:- Britannia Good Day was launched in 1986 in two delectable

avatars -

Good Day Cashew and Butter. Over the years, new variants were introduced - Good Day
Pista Badam in 1989, Good Day Choco-chips in 2000 and Good Day Choco-nut
in 2004. This rich cookie enjoys a fan following of consumers across all ages,
loyal to the brand
promise of a great taste,
among the

evident from the visibly abundant ingredients. Good Day is

fastest growing brands in Britannia's portfolio and it has been the

the cookies

category ever since its launch. The brand

treats that infuse happiness

is synonymous with

leader in
everyday

into people's lives. After two decades of magnificent success;

it was time to give the nation yet another reason to have a good day. Abundance ,
goodness , indulgence and now un-restrained joy that is the message of this new
campaign. The new TC ad is the un-controllable expression of the ticket
collector's happiness and joy that is stimulated by consumption of the cookie, that
spreads cheer
amongst the people around him creating an atmosphere of shared joy that's

un-

orchestrated and straight from the heart. The celebration was taken to the IPL as

Good

day cheered along with a million cricket fans in the stadiums, each screaming and
proclaiming "Ho gaya re Good Day". The dazzling brilliance of this endeavour ,
the contagious rhythm needs to be lived and spread through the nation, making
'Iska toh ho
Gaya Re Good Day' a part of the common lingo and a way of life. Good Day truly
believes laughter and happiness are infectious, it transcends race, caste creed unifying
humanity in

an inclusive

emotion. The brand perseveres to infuse

cheer, hearten the

With its rightful place on the front page

of The Times

nation

and enliven lives.

India,

Good Day gifts the nation a priceless treasure, that of spreading

of

joy.

3. TIGER:- Britannia Tiger, one of the biggest brands in the kids segment, has reinvented itself to revolutionize the concept of kids
with

new

vision

of

nutrition
leading

offerings to embody fun and energy on one hand and health and nutrition on the other.

in
the

the

kids

Enriched with growth nutrients across all its variants, britannia tiger comes

with the
21

credo of 'Roz Badho'. Aimed

at

addressing

every

mothe

nutrition, britannia tiger has undergone a considerable shift in its product offering, transforming
itself into a healthier and tastier avatar. Identifying the role of biscuits as a important component
of daily food and a major carrier of nutrition, britannia tiger fortifies itself, across categories,
with growth nutrients like iron, calcium, folic acid, vitamin A and D packed with 25% of daily
growth nutrients (every 100 gms).

4. MILK BIKIS:-

Milk Bikis, the favourite growth partner of kids,

now brings greate r

value and delight to all with its new product and pack design. Recently re-launched in
its existing Southern & Eastern markets, and extended across India,

the new milk

bikis

is all set to add excitement and appeal to nutritious food. Whoever said that good food
needs to look dull and boring, will just

have to take a look at milk bikis. With

unique and attractive honeycomb design and an enhanced product experience, the new
biscuit
the recipe is now

prompts

the

kids

enhanced with smart nutrients & 4 vital vitamins,

will

love

it

iron and iodine,

proven to aid mental and physical development in growing kids. The premium packaging,
besides appealing to kids, also ensures that the biscuits remain fresh and crisp. So whether its
breakfast time or snack time at school, rest assured that kids will look forward to munching these
crunchy, milky biscuits which even helps in their development.

22

DATA ANALYSIS AND COLLECTION:-

Britannia Annual Report 2011-12

BALANCE SHEET

Rs. in crores

As at

31 March

31 March

2012

2011

(a) Share capital

23.89

23.89

(b) Reserves and surplus

496.15

427.41

520.04

451.30

28.15

430.57

(b) Deferred tax liabilities (net)

8.16

6.24

(c) Other long-term liabilities

19.91

15.99

116.82

122.68

173.04

575.48

(a) Trade payables

336.20

239.68

(b) Other current liabilities

518.26

119.38

(c) Short-term provisions

124.80

96.65

979.26

455.71

1,672.34

1,482.49

I. EQUITY AND LIABILITIES

(1) Shareholders

(2) Non-current liabilities

(a) Long-term borrowings

(d) Long-term provisions

(3) Current liabilities

23

II. ASSETS

(1) Non-current assets

(a) Fixed assets
(i) Tangible assets

370.63

298.68

(ii) Intangible assets

8.46

5.02

(iii) Capital work-in-progress

79.73

11.70

458.82

315.40

(b) Non-current investments

218.40

308.94

(c) Long-term loans and adv.

125.02

142.13

(d) Other non-current assets

12.12

12.12

210.54

236.06

(b) Inventories

382.28

311.20

(c) Trade receivables

52.14

57.26

(d) Cash and bank balances

30.94

28.75

(e) Short-term loans and adv.

182.08

70.63

857.98

703.90

1,672.34

1,482.49

(2) Current assets

2
4

Britannia Annual Report 2011-12

STATEMENT OF PROFIT AND LOSS

Rs. in crores

For the year ended

31 March

31 March

2012

2011

I. Revenue From Operations

Sale of products

5,005.66

4,230.59

Less: Excise duty

(58.62)

(32.27)

Net sale of

4,947.04

4,198.32

27.15

25.20

4,974.19

4,223.52

58.53

48.92

5,032.72

4,272.44

2,655.01

2,371.92

Purchase of stock-in-trade

529.53

410.31

Changes in inventories of finished goods,

(4.79)

(17.89)

Employee benefits expense

145.87

119.93

Finance costs

38.07

37.75

Depreciation and amortisation expense

47.32

44.59

Other expenses

1,369.34

1,107.77

Total Expenses

4,780.35

4,074.38

252.37

198.06

products

Other operating revenues

II. Other Income
III. Total Revenue (I + II)
IV. Expenses:
Raw materials including packaging
materials consumed

work-in-progress and stock-in-trade

V. Profit Before Tax (III IV)

25

VI. Tax Expense:

(1) Current tax
Income tax
Minimum alternative tax for earlier years
Income tax for earlier years
(2) Deferred tax

VII. Profit / (Loss) For The Year (V

63.71

41.52

(13.91)

12.34

1.92

12.82

186.74

145.29

VI)

26

Britannia Annual Report 2011-12

CASH FLOW STATEMENT

Rs. in crores

For the year ended

31 March 2012

31 March 2011

Cash Flows From Operating Activities

Profit before tax

252.37

198.06

Depreciation and amortisation

47.32

44.59

Provision / (reversal) for diminution in value

2.35

(1.78)

Profit on sale of investments, net

(9.10)

(8.66)

Profit on sale of fixed assets, net

(16.40)

(12.80)

Dividend income

(0.19)

(0.28)

Interest income

(32.12)

(24.84)

Interest expense

38.07

37.75

Operating Profit Before Working Capital

282.30

232.04

(71.08)

(42.86)

5.12

(17.77)

(62.70)

72.55

(0.88)

3.13

107.54

31.71

Adjustments For:

of investments, net

Changes
(Increase) / decrease in inventories
(Increase) / decrease in trade receivables
(Increase) / decrease in loans and advances
and other assets
(Increase) / decrease in bank balances (other
than cash and cash equivalents)
Increase / (decrease) in liabilities and
provisions

27

Cash Generated From Operations

260.30

278.80

Income taxes paid, net of refund

(49.64)

(32.48)

Net Cash Provided By Operating Activities

210.66

246.32

(191.20)

(82.35)

Proceeds from sale of fixed asset

20.14

14.64

Sale of investments, net

122.82

(43.91)

(50.00)

Loans given to subsidiaries

(37.96)

(27.64)

Loans repaid by subsidiaries

2.27

10.23

Interest received

32.18

22.33

Dividend received

0.19

0.28

(51.56)

(156.42)

Re-payment of secured loans, net

(0.83)

(0.34)

Interest paid

(37.66)

(37.50)

Dividend paid including tax thereon

(90.06)

(69.55)

Net Cash Used In Financing Activities

(128.55)

(107.39)

Net increase in cash and cash equivalents

30.55

(17.49)

Cash and cash equivalents at the beginning of the

(4.36)

13.13

26.19

(4.36)

Cash Flows From Investing Activities

Purchase of fixed assets ( including finance
leased assets)

Inter-corporate deposits placed, net

Net Cash Used In Investing Activities

Cash flows from financing activities

year

Cash and cash equivalents at the end of

the year (Refer note on next page)

28

NOTE:For the year ended

Cash and cash equivalents at the end of

31 March 2012

31 March 2011

26.19

24.88

(29.24)

26.19

(4.36)

the year
Book overdraft

29

Britannia Annual Report 2011-12

COMPARATIVE BALANCE SHEET

Rs. in crores

As at

31 March

31 March

Absolute

2012

2011

Increase or

Increase

Decrease

or
Decrease

I. EQUITY AND LIABILITIES

(1) Shareholder
(a) Share capital

23.89

23.89

NIL

NIL

(b) Reserves and surplus

496.15

427.41

68.74

16.08

520.04

451.30

68.74

15.23

(a) Long-term borrowings

28.15

430.57

(402.42)

(93.46)

(b) Deferred tax liabilities (net)

8.16

6.24

1.92

30.76

(c) Other long-term liabilities

19.91

15.99

3.92

24.51

(d) Long-term provisions

116.82

122.68

(5.86)

(4.77)

173.04

575.48

(402.44)

(69.93)

(a) Trade payables

336.20

239.68

96.52

40.27

(b) Other current liabilities

518.26

119.38

398.88

334.12

(c) Short-term provisions

124.80

96.65

28.15

29.12

979.26

455.71

523.55

114.88

1,672.34

1,482.49

189.85

12.80

(2) Non-current liabilities

(3) Current liabilities

30

II. ASSETS

(1) Non-current
assets
(a) Fixed
assets
(i)
Tangible
assets

370.63

298.68

71.95

24.08

(ii)
Intangible
assets

8.46

5.02

3.44

68.52

(iii)
Capital
work-inprogress

79.73

11.70

68.03

581.45

458.82

315.40

143.42

45.47

(b) Noncurrent
investments

218.40

308.94

(90.54)

(29.3)

(c) Longterm loans

and adv.

125.02

142.13

(17.11)

(12.03)

(d) Other
non-current
assets

12.12

12.12

210.54

236.06

(25.52)

(10.8)

(b)
Inventories

382.28

311.20

71.08

22.84

(c) Trade
receivables

52.14

57.26

(5.12)

(8.94)

(d) Cash and

bank
balances

30.94

28.75

2.19

7.61

(e) Shortterm loans

and adv.

182.08

70.63

111.45

157.79

857.98

703.90

154.08

21.88

1,672.34

1,482.49

189.85

12.80

(2) Current
assets

NIL

NIL

3
1

Britannia Annual Report 2011-12

COMPARATIVE STATEMENT OF PROFIT AND LOSS

Rs. in crores

For the year ended

31 March

31 March

Absolute

2012

2011

Increase or

Increase

Decrease

or
Decrease

I. Revenue From Operations

Sale of products

5,005.66

4,230.59

775.07

18.32

Less: Excise duty

(58.62)

(32.27)

26.35

81.65

Net sale of

4,947.04

4,198.32

748.72

17.8

27.15

25.20

1.95

7.73

4,974.19

4,223.52

750.67

17.77

58.53

48.92

9.61

19.64

5,032.72

4,272.44

760.28

17.79

2,655.01

2,371.92

283.09

11.93

Purchase of stock-in-trade

529.53

410.31

119.22

29.05

Changes in inventories of

(4.79)

(17.89)

(13.1)

(73.22)

Employee benefits expense

145.87

119.93

25.94

21.62

Finance costs

38.07

37.75

0.32

0.84

Depreciation and amortization

47.32

44.59

2.73

6.12

products

Other operating revenues

II. Other Income
III. Total Revenue (I + II)
IV. Expenses:
Raw materials including
packaging materials consumed

finished goods, work-in-progress

and stock-in-trade

32

expense
Other expenses

1,369.34

1,107.77

261.57

23.61

Total Expenses

4,780.35

4,074.38

705.97

17.32

252.37

198.06

54.31

27.42

63.71

41.52

22.19

53.44

(13.91)

13.91

100

12.34

(12.34)

(100)

1.92

12.82

(10.9)

(85.02)

186.74

145.29

41.45

28.52

V. Profit Before Tax (III IV)

VI. Tax Expense:
(1) Current tax
Income tax
Minimum alternative tax for
earlier

years

Income tax for earlier

years
(2) Deferred tax
VII. Profit / (Loss) For The
Year (V VI)

33

Britannia Annual Report 2011-12

SIGNIFICANT RATIOS

2011-

2010-

2012

2011

Measures of Investment

Return on Equity

Net profit

35.9

32.2

Shareholders

Earning Per Share

Net profit

(NV of Rs. 2)

Number of equity shares

Dividend Cover

Earnings per share (Basic)

Rs.

15.63

12.16

Times

1.6

1.6

Dividend (plus tax) per share

34

Measures of

Performance

Profit Margin

Profit before tax

5.0

4.6

Times

96.0

73.9

Times

39.2

34.8

83.6

95.6

Revenue from operations +

Other income

Debtors Turnover

Sale of products
Trade receivables

Stock Turnover

Sale of products
Inventories (Finished goods +
Stock-in-trade)

Measures of Financial
Status

Debt Equity Ratio

Long-term borrowings + Current

maturities of long-term debt and
finance lease obligations
Shareholders

35

Current Ratio

Current assets

Times

1.5

1.5

Current liabilities Current

maturities of long-term debt and
finance lease obligations

Tax Ratio

Provision for tax

26.0

26.6

Profit before tax

36

COMMENTS:-

Return on Equity Capital:- Return on equity capital ratio calculates the amount of profits
available to take care of equity dividends, transfer to reserves, etc.
1) The return on equity capital is 35.9%.
2) It indicates that on each Rs.100 of equity capital:1) Average net return of Rs.35.9 is earned.
2) This amount of Rs.35.9 is available for appropriation to equity shareholders.
3) There
rights

is a good scope to attract fresh funds by issue of equity shares by way of

or public issue.

Current Ratio:- Current ratio is a liquidity/solvency ratio which indicates the ability of
a concern to meet its short-term liability.
1) Rs.1.5 of current asset is available for each Re.1 of current liability.
2) Current ratio is constant for two financial years.
3) It shows an:1) Optimum liquidity/solvency position.
2) Optimum level of current asset.
3) Optimum level of trading(i.e, optimum turnover generated from the given level of
assets employed).

Debt-Equity Ratio:- Debt-equity ratio is a solvency ratio which indicates the proportion
of debt and equity in financing of the assets of the concern.
1) Debt-Equity ratio is 83.6% which means that long term loans(debts) are 83.6% of
shareholders funds.
2) It indicates that:37

1) There is very satisfactory safety margin for the long term creditors.
2) More dependence on equity.
3) Ease of raising additional loans.
4) Smaller burden of fixed interest payments.

Stock Turnover Ratio:- Stock turnover ratio shows the relationship between the cost of
goods sold and the average stock.
1) Stock turnover ratio is 39.2 times which means that during the year stock was
converted into sales 39.2 times.
2) Stock Velocity will be 365/39.2 = 9.3 days which means that on an average 9.3
days production will be held by company as stock or it also means that it takes 9.3 days
for the company to sell stock after it is produced.
3) Stock is sold out fast.
4) Working capital requirement is less.

Debtors Turnover Ratio:- Debtors turnover ratio shows relationship between credit sales
and debtors. Its purpose is to calculate the speed with which debtors get settled on an average
during the year and to calculate debtors velocity to indicate the period of credit allowed to an
average debtor.
1) The debtors turnover ratio is 96 times which shows that debts are being collected
at a fast speed during the year.
2) Debtors Velocity will be 365/96 = 3.48 days which shows that on an average it
takes 3.48 days to settle a debt.
3) The amount of credit given by the concern to its customer is less.
4) Less funds are blocked up in debtors and working capital.
5) There are less chances of bad debts.
6) The debtors are managed very efficiently.
38

Profit Margin Ratio:- Profit margin ratio helps to judge how efficiently the concern is
managing all its activities of operations, financing and investment and how much amount is
available for appropriation.
1) The profit margin has increased from 4.6% to 5%.
2) All activities of the company are managed efficiently.
3) There is very good control

over all cost ,i.e, operating as well as non-operating

cost.
4) A good margin is available

to make appropriation.

Dividend Coverage Ratio:- Dividend coverage ratio indicates the capacity of a company to pay
dividends out of profit attributable to the shareholders.
1) The dividend coverage ratio is 1.6 times which is just above the standard ratio of
1.5 times.
2) It is constant for past two financial years which shows that company is retaining similar
portion of its earnings to meet its financial requirements.

Earning Per Share:- Earning per share calculates the amount of profits available to take care
of equity dividends, transfer to reserves, etc.
1) The earning per share has increased from Rs.12.6 to Rs.15.63 (NV is Rs.2).
2) It indicates that on each Rs.100 of equity capital:1) Average net return of Rs.15.63 is earned.
2) This amount of Rs.15.63 is available for appropriation to equity shareholders.
3) There is a good scope to attract fresh funds by issue of equity shares by way of
rights or public issue.

39

Conclusion:Britannia Industries Limited is also a major player in the ready to eat food segment with
leadership

position

in

bakery

category.

Delhi, Chennai, Mumbai, Uttarakhand, Orissa & Bihar with a capacity of 160,000 MT.
The company has transformed itself from being a primarily a biscuit company in 2008 with
diversification efforts into other bakery products & dairy. Britannia made its strong presence
felt in dairy this year and recently forayed into ready to eat Indian breakfast market & savory
market. We expect this new initiative to start yielding results from
2014. Companys

product

categories

are

is growing at +10%. The company has over last 3-4 years done the innovations in its product
portfolio in all facets such as pricing, packaging and entry into new segments. Innovation has
been focused on growing its segments with the base of health and nutrition. The company has
over the years innovated its product portfolio so as to command pricing premium in the market.
Brand leverage has helped Britannia gain foot hold in new segment such as chaas and healthy
bread offerings. Innovation backed by advertisement exposure to help improve growth. Britannia
accelerated the nutritional drive in the last 3-4 years and has been growing in double digits in
this segment. The adults Health and Wellness segment is growing at +20% levels and Britannia
is witnessing similar to higher growth. Approximately 50% of its revenues flow in from this
health & wellness segment.

In an increasingly challenging environment and continuing commodity inflation, Britannia net

profit has increased by 28.5% ,i.e, from Rs.145.29 crores to Rs.186.74 crores. The company held
its overall share of about one-third of the biscuit market, strengthened its position in other
bakery products like bread, cake & rusk and added Rs.775.07 crores to sale of products, which
grew 18.32%. Earnings per share of Rs.2 were Rs.15.63. In the domestic market, competitive
intensity in both bakery and dairy will continue to increase as more players, both multinational
and local companies, compete for a greater share of the large and growing packaged food
segment, of which biscuits account for the highest share. Growth is expected to be driven
through heavy investment in advertising & promotions as well as infrastructure investments to
build scale and support new
40

introductions, both in the premium and discount segments. Also, Britannia Nutrition
Foundation continues to work on initiatives related to malnutrition in children and women
and will partner with the government, NGOs etc., to pilot and scale up successful
initiatives.

41

BIBLOGRAPHY:1) WWW.BRITANNIA.CO.IN

2) WWW.MONEYCONTROL.COM

3) WWW.WIKIPEDIA.COM

4) WWW.BUSINESSTANDARD.COM

5) WWW.ECONOMICTIMES.COM

6) WWW.JUST-FOOD.COM

42