britannia industries financial report

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_Report


2/15

,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


3/15

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


4/15

materials' pac&in) materials and other supplies held for use in production of in+entories arenot written-down below cost e


5/15

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.

%


6/15

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


7/15

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


8/15

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


9/15

/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


10/15

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


11/15

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


12/15

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


13/15

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


14/15

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


15/15

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&param=BRITANNIAhttp://www.nseindia.com/corporates/corporateHome.html?id=shldinfo_annual_reports&radio_btn=company&param=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&param=BRITANNIAhttp://www.nseindia.com/corporates/corporateHome.html?id=shldinfo_annual_reports&radio_btn=company&param=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/

britannia industries financial report

Documents