britannia project

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1 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 SVKM’S NARSEE MONJEE COLLEGE OF COMMERCE &ECONOMICS VILE PARLE (W), MUMBAI 400056.

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  • 1

    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.

  • 2

    EVALUATION CERTIFICATE

    This is to certify that the undersigned have assessed and evaluated the

    project on BRITANNIA submitted 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

  • 3

    DECLARATION BY THE STUDENT

    I, student of M.Com. (Part I) Roll No.:041 hereby declare that the project

    titled BRITANNIA for the subject ADVANCED FINANCIAL

    ACCOUNTING submitted by me for Semester I of the academic year

    2013-14, 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

  • 4

    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 SVKMS NARSEE

    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 our college Shri.Sunil

    B.Mantri for his support and guidance.

    I would also like to thank the college library and 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.

  • 5

    CONTENT

    Sr. No. PARTICULARS Page No.

    CHAPTER I INTRODUCTION

    1.1 Company Information 6

    1.2 Major Players & Market Share 8

    1.3 Pricing & Cost Sheet 9

    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

  • 6

    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

    1918, 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 in 1924 and Peek Freans UK, acquired a controlling interest in BBCo. Biscuits

    were in big demand during World War II, which gave a boost to the companys sales.

    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.

  • 7

    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 one of India's biggest brands and the pre-

    eminent food brand of the country. It was equally 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 has

    grown by leaps and bounds to crores of rupees in wealth 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 Britannias annual revenue of Rs.22 billion comes from biscuits. Britannia is one

    of India's 100 Most Trusted brands listed in THE BRAND TRUST REPORT.

  • 8

    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

  • 9

    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.

  • 10

    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

  • 11

    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 -

    44

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

    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 .

  • 12

    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.

  • 13

    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

  • 14

    drink for kids, which helps improve mental sharpness. Launch of

    Acti-Mind 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 trans-fats 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

  • 15

    14th

    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

  • 16

    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

    Businesses- Manufacturing' 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

    AWARD by 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 2011-

    12 , at the 1st SPENCER'S Best Supplier Awards 2012 on 22nd

    June.

  • 17

    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 22nd

    and

    23rd

    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

    End to End Customer Solution Excellence" on 23rd

    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

    14th

    February 2013 at Taj Lands End, Mumbai.

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

    award ceremony held on 16th

    March 2013 in Bengaluru, in the

    Corporate Social Responsibility category for initiating and

    implementing Solid Waste Management.

  • 18

    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

  • 19

    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

  • 20

    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".

  • 21

    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, evident from the visibly abundant ingredients. Good Day is

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

    the cookies category ever since its launch. The brand is synonymous with everyday

    treats that infuse happiness 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

    nation and enliven lives. With its rightful place on the front page of The Times of

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

    3. TIGER:- Britannia Tiger, one of the biggest brands in the kids segment, has re-

    invented itself to revolutionize the concept of kids nutrition in the country. Equipped

    with a new vision of leading the kids nutrition space, britannia tiger has revamped its

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

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

  • 22

    credo of 'Roz Badho'. Aimed at addressing every mothers concern on their kids

    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 a

    unique and attractive honeycomb design and an enhanced product experience, the new

    biscuit prompts the kids will love it reaction amongst mothers. The milk goodness in

    the recipe is now enhanced with smart nutrients & 4 vital vitamins, 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.

  • 23

    DATA ANALYSIS AND COLLECTION:-

    Britannia Annual Report 2011-12

    BALANCE SHEET

    Rs. in crores

    As at 31 March

    2012

    31 March

    2011

    I. EQUITY AND LIABILITIES

    (1) Shareholders funds

    (a) Share capital 23.89 23.89

    (b) Reserves and surplus 496.15 427.41

    520.04 451.30

    (2) Non-current liabilities

    (a) Long-term borrowings 28.15 430.57

    (b) Deferred tax liabilities (net) 8.16 6.24

    (c) Other long-term liabilities 19.91 15.99

    (d) Long-term provisions 116.82 122.68

    173.04 575.48

    (3) Current liabilities

    (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

  • 24

    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

    (2) Current assets 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

  • 25

    Britannia Annual Report 2011-12

    STATEMENT OF PROFIT AND LOSS

    Rs. in crores

    For the year ended 31 March

    2012

    31 March

    2011

    I. Revenue From Operations

    Sale of products 5,005.66 4,230.59

    Less: Excise duty (58.62) (32.27)

    Net sale of products 4,947.04 4,198.32

    Other operating revenues 27.15 25.20

    4,974.19 4,223.52

    II. Other Income 58.53 48.92

    III. Total Revenue (I + II) 5,032.72 4,272.44

    IV. Expenses:

    Raw materials including packaging

    materials consumed

    2,655.01 2,371.92

    Purchase of stock-in-trade 529.53 410.31

    Changes in inventories of finished goods,

    work-in-progress and stock-in-trade

    (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

    V. Profit Before Tax (III IV) 252.37 198.06

  • 26

    VI. Tax Expense:

    (1) Current tax

    Income tax 63.71 41.52

    Minimum alternative tax for earlier years - (13.91)

    Income tax for earlier years - 12.34

    (2) Deferred tax 1.92 12.82

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

    VI)

    186.74 145.29

  • 27

    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

    Adjustments For:

    Depreciation and amortisation 47.32 44.59

    Provision / (reversal) for diminution in value

    of investments, net

    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

    Changes

    282.30 232.04

    (Increase) / decrease in inventories (71.08) (42.86)

    (Increase) / decrease in trade receivables 5.12 (17.77)

    (Increase) / decrease in loans and advances

    and other assets

    (62.70) 72.55

    (Increase) / decrease in bank balances (other

    than cash and cash equivalents)

    (0.88) 3.13

    Increase / (decrease) in liabilities and

    provisions

    107.54 31.71

  • 28

    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

    Cash Flows From Investing Activities

    Purchase of fixed assets ( including finance

    leased assets)

    (191.20) (82.35)

    Proceeds from sale of fixed asset 20.14 14.64

    Sale of investments, net 122.82 (43.91)

    Inter-corporate deposits placed, net - (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

    Net Cash Used In Investing Activities (51.56) (156.42)

    Cash flows from financing activities

    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

    year

    (4.36) 13.13

    Cash and cash equivalents at the end of

    the year (Refer note on next page)

    26.19 (4.36)

  • 29

    NOTE:-

    For the year ended 31 March 2012 31 March 2011

    Cash and cash equivalents at the end of

    the year

    26.19 24.88

    Book overdraft - (29.24)

    26.19 (4.36)

  • 30

    Britannia Annual Report 2011-12

    COMPARATIVE BALANCE SHEET

    Rs. in crores

    As at 31 March

    2012

    31 March

    2011

    Absolute

    Increase or

    Decrease

    %

    Increase

    or

    Decrease

    I. EQUITY AND LIABILITIES

    (1) Shareholders funds

    (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

    (2) Non-current liabilities

    (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)

    (3) Current liabilities

    (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

  • 31

    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-in-progress 79.73 11.70 68.03 581.45

    458.82 315.40 143.42 45.47

    (b) Non-current investments 218.40 308.94 (90.54) (29.3)

    (c) Long-term loans and adv. 125.02 142.13 (17.11) (12.03)

    (d) Other non-current assets 12.12 12.12 NIL NIL

    (2) Current assets 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) Short-term 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

  • 32

    Britannia Annual Report 2011-12

    COMPARATIVE STATEMENT OF PROFIT AND LOSS

    Rs. in crores

    For the year ended 31 March

    2012

    31 March

    2011

    Absolute

    Increase or

    Decrease

    %

    Increase

    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 products 4,947.04 4,198.32 748.72 17.8

    Other operating revenues 27.15 25.20 1.95 7.73

    4,974.19 4,223.52 750.67 17.77

    II. Other Income 58.53 48.92 9.61 19.64

    III. Total Revenue (I + II) 5,032.72 4,272.44 760.28 17.79

    IV. Expenses:

    Raw materials including

    packaging materials consumed

    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

    finished goods, work-in-progress

    and stock-in-trade

    (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

  • 33

    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

    V. Profit Before Tax (III IV) 252.37 198.06 54.31 27.42

    VI. Tax Expense:

    (1) Current tax

    Income tax 63.71 41.52 22.19 53.44

    Minimum alternative tax for

    earlier years

    - (13.91) 13.91 100

    Income tax for earlier

    years

    - 12.34 (12.34) (100)

    (2) Deferred tax 1.92 12.82 (10.9) (85.02)

    VII. Profit / (Loss) For The

    Year (V VI)

    186.74 145.29 41.45 28.52

  • 34

    Britannia Annual Report 2011-12

    SIGNIFICANT RATIOS

    2011-

    2012

    2010-

    2011

    Measures of Investment

    Return on Equity

    Net profit

    Shareholders funds

    %

    35.9

    32.2

    Earning Per Share

    (NV of Rs. 2)

    Net profit

    Number of equity shares

    Rs.

    15.63

    12.16

    Dividend Cover

    Earnings per share (Basic)

    Dividend (plus tax) per share

    Times

    1.6

    1.6

  • 35

    Measures of

    Performance

    Profit Margin

    Profit before tax

    Revenue from operations +

    Other income

    %

    5.0

    4.6

    Debtors Turnover

    Sale of products

    Trade receivables

    Times

    96.0

    73.9

    Stock Turnover

    Sale of products

    Inventories (Finished goods +

    Stock-in-trade)

    Times

    39.2

    34.8

    Measures of Financial

    Status

    Debt Equity Ratio

    Long-term borrowings + Current

    maturities of long-term debt and

    finance lease obligations

    Shareholders funds

    %

    83.6

    95.6

  • 36

    Current Ratio Current assets

    Current liabilities Current

    maturities of long-term debt and

    finance lease obligations

    Times 1.5 1.5

    Tax Ratio

    Provision for tax

    Profit before tax

    %

    26.0

    26.6

  • 37

    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:-

    a) Average net return of Rs.35.9 is earned.

    b) This amount of Rs.35.9 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.

    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:-

    a) Optimum liquidity/solvency position.

    b) Optimum level of current asset.

    c) 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:-

  • 38

    a) There is very satisfactory safety margin for the long term creditors.

    b) More dependence on equity.

    c) Ease of raising additional loans.

    d) 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.

  • 39

    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:-

    a) Average net return of Rs.15.63 is earned.

    b) 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.

  • 40

    Conclusion:-

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

    leadership position in bakery category. The companys plants are situated in Kolkata,

    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 all growing at +15% while the overall industry

    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

  • 41

    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.

  • 42

    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