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7/23/2019 Britannia Industries Financial Report
1/15
FSA Report of Britannia Industries Ltd. for Financial
Year 2012-2013, 2013-14 and 2014-1
END TERM PROJECT REPORT
Submitted to - !r."a#an $ain
Name of the Student Roll No. Section D
1. %unal !esai 201211
2. Sa&ar Arora 20123'
Britannia Industries Ltd
Britannia Industries Ltd is an India-based food company. The Company was born in !st
"arch of the year !#!$ as a public limited company in %ol&ata which initially used to
manufacture biscuit in a small house. But now it has plants in %ol&ata' Delhi' Chennai'
"umbai and (ttara&hand and is reco)ni*ed as one of the most trusted' +aluable and popular
brands amon) Indian consumers in +arious reputed sur+eys. ,+er the last century and a
uarter' Britannia has been ser+in) the Indian consumer with a ran)e of fresh' nutritious andfla+our-rich products. Company offers a ran)e of ba&ery products and dairy products' its
product ran)e includes Britannia Cheese Slices' Britannia Ti)er' Britannia NutriChoice ,at
Coo&ies' Britannia NutriChoice Ra)i Coo&ies' e) Ca&es' Nutrichoice /ealth Starter %it'
NutriChoice 0 1rain' NutriChoice Su)ar,ut' NutriChoice Di)esti+e Biscuit' Treat 2ruit
Roll*' and many more.
Biscuits manufacturin) is the main di+isions of the company' the company3s factories ha+e an
annual capacity of 455'666 tonnes. The brand names of biscuits include ita"arie1old'
Ti)er' Nutrichoice 7unior' 1ood day' 06 06' Treat' 8ure "a)ic' "il& Bi&is' 1ood "ornin)'
Bourbon' Thin 9rrowroot' Nice' Little /earts amon) others.
Ti)er' the mass mar&et brand' realised :!06.;0 million in sales includin) e666 Crores in re+enues'
deli+erin) products in o+er 0 cate)ories throu)h 5.0 million retail outlets to more than half
the Indian population. Britannia is also listed in one of India3s !66 "ost Trusted brands
inThe Brand Trust Reportand currently ha+in) an estimated mar&et share of 5$=.
Section 2(
1
https://en.wikipedia.org/wiki/The_Brand_Trust_Reporthttps://en.wikipedia.org/wiki/The_Brand_Trust_Reporthttps://en.wikipedia.org/wiki/The_Brand_Trust_Report7/23/2019 Britannia Industries Financial Report
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,b?ecti+e-@)o carr* out t+e Financial Stateent Anal*sis Britannia Industries
Ltd.
8eriod of study-2012-13, 2013-14, 2014-1.
"ode of Research-@Secondar* !ataA
Ratio analysis as a tool to analy*e 2inancial statements
Ratio analysis is used to e+aluate +arious aspects of a companys operatin) andfinancial performance such as its efficiency' liuidity' profitability and sol+ency. /erewe are usin) different ratios to understand +arious financial results and trends ofBritannia Industries o+er time and analy*e companys performance
List of Ratios used-
! Net 8rofit ratio8rofit after ta 8ercenta)e of total assets with that of Non-current liabilities
; Trade recei+able turno+er ratioNet credit salesF9+era)e accounts recei+ables
$ In+entory turno+er ratioHCost of material consumed purchase of stoc& in tradechan)e in in+entory "anufacturin) e
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Reenue /eneratin& Actiities ain Business of t+e copan*
The primary business se)ment of your Companyis 2oods comprisin) Hi Ba&ery products- Biscuit'Bread' Ca&e and Rus&' and Hii Dairy products J"il&' Butter' Cheese' 1hee'Dahi' "il&-based readyto drin& be+era)es and Dairy Khitener. Sale of 8roducts in the domestic mar&et for
ba&eryproducts and e'54;.$0 crores in 6!5-!4 to ;'>#.> crores in6!4-!0 and at present' #6= of Britannias annual re+enue of Rs billion comes from
biscuits alone.
Areas #+ic+ are ein& coered * t+e opan* in its Accountin& "olicies
)+ere are arious areas #+ic+ are ein& coered * t+e copan* in its Accountin&
"olicies( aBasis of preparation of consolidated financial statements' Subsidiaries and
associate companies considered in the consolidated financial statements' c8rinciples of
consolidation' dBasis of accountin) and preparation of financial statements' e(se of
estimates' f2i
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materials' pac&in) materials and other supplies held for use in production of in+entories arenot written-down below cost e
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operating activity investing activity fnancing activity
-600
-400
-200
0
200
400600
800
1000
Cash ows o Britannia Indstries pvt! "td! #in crores$
2012-13 2013-14 2014-1%
2012-13 2013-14 2014-1%
-20
-10
0
10
20
30
40
%0
60
Cash at the &eginnin and the end o the year
cash at &eginning cash at the end
Cash flows of Britannia Industries 8+t. Ltd. Can be easily analysed from the )raphs.
Company has maintained hi)hest cash balance in the year 6!5-!4 and ne)ati+e cash balance
HcreditFloan in 6!-!5. This is due to fact that cash inflow from operatin) acti+ity in 6!-
!5 is the lowest and cash outflow from financin) acti+ity in the same year is the hi)hest
Hrepayment of loan is hi)hest i.e. 466.0$ crores' althou)h cash inflow from in+estin) acti+ityis the hi)hest. Thou)h cash flow from operatin) acti+ity in the year 6!4-!0 is the hi)hest'
but cash at the end is hi)hest in the year 6!5-!4 because comparati+ely there is less outflow
of cash in in+estin) acti+ity from 6!4-!0. Cash inflow from in+estin) acti+ity is only in
6!5-!4' this is a positi+e )rowth factor for the company i.e. it is )eneratin) all its re+enue
from operatin) acti+ity.
2rom comparin) cash flow statements of three consecuti+e years it can be concluded that
company is )rowin) with stable )rounds' it is )eneratin) all of its re+enue from the operatin)
acti+ity. Sta&eholdersFShareholders are )ettin) benefit by )reater di+idendsFprofits.
%
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Section-4
"articulars 2012-2013 2013-2014 2014-201
8rofit 9fter Ta< 55.$; 5>#.$ >.4!
Net ,peratin)
Re+enue
;.6! >!4.0! 0!0.55
Total Re+enue 0'>;6.#> >'#4>.56 ;'#4>.5$
,peratin) 8rofit 50!.40 ;#>.5$ $6#.;
Total Non-Current
Liabilities
!;!.;; $.; 6.50
Share-holders fund >5>.4! $05.4> !'50.>
Total Current
9ssets
;!0.5$ $>6.6> !'4#.5!
Total Current
Liabilities
$>;.;4 #0$.45 !'6.40
Total Non-Current
fi 0#.$! 0!5.4
Total 9ssets !'>$5.65 !'$44.44 '4>!.##
Total Liabilities !'>$5.65 !'$44.44 '4>!.##Cost of )oods sold
HC,1S
0!66.4> 005$.5 >;.;
In+entories 55!.4# 5>>.$> 540.;4
Net credit sales 00>4.5$ >'5.6# ;'!66.4>
9+era)e account
recei+ables
H;;.!0.!4F
>4.>5
H;;.!05.>#F>0.4
6
H;6.#$05.>#F>.5
5
Number of Guity
shares
06'666'666 06'666'666 06'666'666
a "ercenta&e of profit after )a8 #it+ t+at of 9et ;peratin& Reenue and )otal
Reenue
Net profit ratio re+eals the remainin) profit after all costs of production' administration' and
financin) ha+e been deducted from sales' and income ta
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6!-!5 #0.46 4.;0
6!5-!4 >6.!; 0.5
6!4-!0 !6.;; ;.$5
Anal*sis(
/ere the Net 8rofit ratio is continuously increasin) which indicates that the or)ani*ation
mana)ement is efficiently mana)in) its business affairs.
2012-13 2013-14 2014-1%0
20
40
60
80
100
120
140
'roft ater ta()*et operating revene+100
'roft ater ta()*et operating
revene+100
2012-13 2013-14 2014-1%0
1
2
3
4
%
6,
8
'roft ater ta()tota" revene+100
'roft ater ta()tota" revene+100
"ercenta&e of ;peratin& "rofit #it+ t+at of 9et ;peratin& Reenue
This is a profitability ratio that measures what percenta)e of total re+enues is made up by
operatin) incomeO it indicates the profit a+ailable after deductin) manufacturin) and
operatin) e
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6!4-!0 !0;.!
Anal*sis(
/era in case of Britannia Industries the operatin) profit ratio is increasin) which shows thatthe company is ma&in) enou)h money from its on)oin) operations to pay for its +ariable
costs as well as its fi
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/ere the DFG ratios are fallin) down each year which means in year 6!4-!0 Britannia
Industries ha+e more financially stable business as compare to 6!-!5 where the ratio was
hi)h which indicates company was in+estin) on lar)e amounts on debts.
2012-13 2013-14 2014-1%
0
%
10
1%
20
2%
30
/ota" non-crrent "ia&i"ities)shareho"ders nd+100
/ota" non-crrent "ia&i"ities)shareho"ders nd+100
d "ercenta&e of )otal urrent Assets #it+ t+at of )otal urrent Liailities.
It is the relati+e proportion of an entity3s current assets to its current liabilities' and is
intended to show the ability of a business to pay for its current liabilities with its current
assets.
ears Kor&in) Capital Ratio or Current Ratio TotalCurrent 9ssetsFTotal Current LiabilitiesE!66
6!-!5 $.44
6!5-!4 $#.;5
6!4-!0 !!$.$>
2012-13 2013-14 2014-1%0
20
40
60
80
100
120
140/ota" Crrent ssets)/ota" Crrent ia&i"ities+100
/ota" Crrent ssets)/ota " Crrent ia&i"ities+100
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Anal*sis(
)+is is a urrent ratiothat comes under Liuidity Ratio. Current 9ssets is directly
proportional to the Current Ratio as interpreted )enerally. Current 9ssets in 6!-!5
)radually increases to 6!5-!4 then to 6!4-!0. 9lso' the +alue of Current Liabilities in
6!-!5 decreases e+ery year. So the ratio increase here show the )ood si)n for company
e "ercenta&e of )otal 9on-urrent Fi8ed )an&ile Assets #it+ t+at of 9on-urrent
Liailities
ears Total Non-Current 2i
2012-13 2013-14 2014-1%0
%00
1000
1%00
2000
2%00
3000
/ota" *on-Crrent i(ed /angi&"e ssets)*on-Crrent ia&i"ities+100
/ota " *on-Crrent i(ed /angi&"e ssets)*on-Crrent ia&i"ities+100
Anal*sis(
In this scenario' The non-current 2i
7/23/2019 Britannia Industries Financial Report
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6!5-!4 >04.5;
6!4-!0 !6#$.5
2012-13 2013-14 2014-1%0
2000
4000
6000
8000
10000
1200014000
/ota" ssets)*on-Crrent ia&i"ities+100
/ota" ssets)*on-Crrent ia&i"ities+100
Anal*sis(
The ratio is )radually decreasin) from 6!-!5 to 6!5-!4 and then from 6!5-!4 to 6!4-
!0. The reason behind this can be interpreted li&e' the non-current liabilities is decreasin) in a
much steeper way than increase the rate of increase in Total assets. Thus this numbers are not
a )ood si)n for the in+estors' shareholders and ultimately for the company
& )rade receiale turnoer ratio4.>5
$>.6#
6!5-!4 >'5.6# H;;.!05.>#F>0.4
6
#0.0
6!4-!0 ;'!66.4> H;6.#$05.>#F>.5
5
!!5.#6
Inentor* )urnoer Ratio
This ratio indicates the +elocity with which In+entory mo+es or how uic&ly a company
is able to con+ert its in+entory into cash or cash eui+alents.
11
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ears Cost of )oods soldFin+entory
6!-!5 !0.5$
6!5-!4 !0.6#
6!4-!0 !$.6!
2012-13 2013-14 2014-1%0
%
10
1%
20
2%
Cost o goods so"d)inventory+100
Cost o goods so"d)inventory+100
Anal*sis(
In order to pre+ent the in+entory pile-up' Britannia is lowerin) wholesale shipments P in turnmaintainin) re+enues. It e
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as the proportion iss grada""y increasing in orward direction5 so the ' iss
grada""y is decreasing in sa7e proportion in the orward direction!
2012-13 2013-14 2014-1%0
%0
100
1%0
200
2%0
Cash "ow ro7 .perating ctivities)'roft ater /a(+100
Cash "ow ro7 .perating ctivities)'roft ater /a(+100
i =arnin&s "er S+are
This ratio indicates the amount of profit a+ailable for the euity shareholders after payin) off
all the e
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2012-13 2013-14 2014-1%0
%00
1000
1%00
2000
2%00
'roft ater ta()*o! o eity shares issed+100
'roft ater ta()*o! o eity shares issed+100
5 S+are price oeent c+art of t+e copan* durin& last t+ree *ears startin&
ac6#ard fro Au&ust 01, 201
!iidend
8eriod Di+idend = Guity Rs M66
6! 9pril-"arch 40.66 !!#406$
6!5 9pril-"arch 40.66 !!#00$
6!4 9pril-"arch >66.66!!##0$
6!0 9pril-"arch $66.66 !!##0$
14
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Bilio&rap+*
! httpFFin.reuters.comFfinanceFstoc&sFcompany8rofileQsymbolBRIT.B,
httpFFwww.efinancemana)ement.comFfinancial-analysisFanalysis-of-financial-
statements-usin)-financial-ratios
5 Britannia 9nnual Report of 6!-6!5' 6!5-6!4' 6!4-6!0
4 httpFFwww.nseindia.comFcorporatesFcorporate/ome.htmlQ
idshldinfoannualreportsPradiobtncompanyPparamBRIT9NNI9
0 httpFFwww.nseindia.comFli+emar&etFdynaContentFli+ewatchF)etuoteF1etuote.?
spQsymbolBRIT9NNI9Pilliuid6Psme2la)6Pitp2la)6
> httpFFwww.moneycontrol.comFstoc&-chartsFbritanniaindustriesFchartsFBIBI
; httpFFwww.myaccountin)course.comFfinancial-ratiosF
$ httpFFwww.in+estopedia.com
1%
http://in.reuters.com/finance/stocks/companyProfile?symbol=BRIT.BOhttp://www.efinancemanagement.com/financial-analysis/analysis-of-financial-statements-using-financial-ratioshttp://www.efinancemanagement.com/financial-analysis/analysis-of-financial-statements-using-financial-ratioshttp://www.nseindia.com/corporates/corporateHome.html?id=shldinfo_annual_reports&radio_btn=company¶m=BRITANNIAhttp://www.nseindia.com/corporates/corporateHome.html?id=shldinfo_annual_reports&radio_btn=company¶m=BRITANNIAhttp://www.nseindia.com/live_market/dynaContent/live_watch/get_quote/GetQuote.jsp?symbol=BRITANNIA&illiquid=0&smeFlag=0&itpFlag=0http://www.nseindia.com/live_market/dynaContent/live_watch/get_quote/GetQuote.jsp?symbol=BRITANNIA&illiquid=0&smeFlag=0&itpFlag=0http://www.moneycontrol.com/stock-charts/britanniaindustries/charts/BI#BIhttp://www.myaccountingcourse.com/financial-ratios/http://www.investopedia.com/http://in.reuters.com/finance/stocks/companyProfile?symbol=BRIT.BOhttp://www.efinancemanagement.com/financial-analysis/analysis-of-financial-statements-using-financial-ratioshttp://www.efinancemanagement.com/financial-analysis/analysis-of-financial-statements-using-financial-ratioshttp://www.nseindia.com/corporates/corporateHome.html?id=shldinfo_annual_reports&radio_btn=company¶m=BRITANNIAhttp://www.nseindia.com/corporates/corporateHome.html?id=shldinfo_annual_reports&radio_btn=company¶m=BRITANNIAhttp://www.nseindia.com/live_market/dynaContent/live_watch/get_quote/GetQuote.jsp?symbol=BRITANNIA&illiquid=0&smeFlag=0&itpFlag=0http://www.nseindia.com/live_market/dynaContent/live_watch/get_quote/GetQuote.jsp?symbol=BRITANNIA&illiquid=0&smeFlag=0&itpFlag=0http://www.moneycontrol.com/stock-charts/britanniaindustries/charts/BI#BIhttp://www.myaccountingcourse.com/financial-ratios/http://www.investopedia.com/