.

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FSA MULUND COLLEGE OF
COMMERCE

ACADEMIC YEAR: 2015-16

Name of Student: Larian Britto

Roll No.: 1513107

Name of Program: Bachelor of Financial Markets

Class: Second Year- BCFM

Semester: IV

Subject: Security Analysis And Portfolio Management

Faculty: Prof. Mrs Swamini Sabnis

Project Name: Britannia Industries

 CERTIFICATE

This is to certify that the project BRITANNIA INDUSTRIES

By LARIAN BRITTO Roll No.1513107 completed in partial fulfillment of Second

year B.com-Financial Markets Semester IV Internal Examination during the
academic year 2015-16 has been found satisfactory.

_____________ ____________

Students signature Faculty Signature

Date:- Date:-
 INDEX

SR.NO PARTICULARS REMARKS

1 Week 1 : (04-01-2016 to 08-01-2016)

.

2 Week 2: (11-01-2016 to 15-01-2016)

.

3 Week 3: ( 18-01-2016 to 22-01-2016)

.

4 Week 4: (25-01-2016 to 29-01-2016)

.

5 Week 5: (01-02-2016 to 05-02-2016)

.

6 Monthly: (04-01-2016 to 05-02-2016)

.

7 Conclusion
.
 INDEX

SR.NO PARTICULARS REMARKS

1. OVERVIEW

2. BALANCE SHEET

3. PROFIT AND LOSS ACCOUNT

4. FINANCIAL RATIOS

5. RATIO ANALYSIS

6. CORE VALUES

7. VISION AND MISSION

8. CONCLUSION

9. REFERENCES
 BRITANNIA INDUSTRIES

OVERVIEW

We demand the best of ingredients and package their natural goodness in

our products, without compromise.

123 years ago, in a small house in central Calcutta (now Kolkata) an intrepid baker
made a batch of delicious, golden brown biscuits. These were meant for officers of
the British Raj and their families, people used to the exacting standards of English
tea-time snacking. From the paeans of ecstasy for that first batch of aromatic,
flavour-some biscuits was born a long tradition of delectable baking - and its
Indian custodian, Britannia.

Over the last century and a quarter, Britannia has been serving the Indian consumer
with a range of fresh, nutritious and flavor rich products. We take pride in our food
making traditions and in our innovations, in equal measure. We demand the best of
ingredients and package their natural goodness in our products, without
compromise. We deliver a complete sensory experience, in every product, every
time.

Today, Britannia is a leading food company in India with over Rs. 6000 Crores in
revenues, delivering products in over 5 categories through 3.5 million retail outlets
to more than half the Indian population. Our core emphasis across portfolios is on
healthy, fresh and delicious food and we are the First Zero Trans-fat Company in
India. 50% of our product portfolio is enriched with micro-nutrients. Our products
are also delivered through the Britannia Nutrition Foundation to combat
malnutrition among underprivileged children.

Britannia Dairy had its beginnings in 1997. Britannia was one of the first
companies in India to pioneer category defining innovations like Cream Cheese
and introducing a host of international flavors for its cubes & spreads in India.
Today Britannia Dairy products contribute close to 10% of the companys revenue.
Britannia markets its dairy portfolio on the back of a well integrated cold chain
logistics network and reaches 3 million outlets across the length & breadth of this
country.

Our relentless focus on quality and freshness has won us prestigious accolades
including the Golden Peacock National Quality Award and the Ramakrishna Bajaj
National Quality Award. However, the award that we cherish the most is the one
given by our consumers.

Our Core Emphasis Across Portfolios Is On Healthy, Fresh And Delicious

Food.

Britannia is recognized as one of the most trusted, valuable and popular brands
among Indian consumers in various reputed surveys.

We realize our responsibility to continue delivering fresh, nutritious and fun

products and it is our mission to be an arm-stretch away, any time of the day.

So, the next time you imagine the aroma of oven-fresh cakes, the tantalizing drop
of rich chocolate cream on crisp, cocoa-brown cookies, the satisfying mouthful of
crunchy biscuits or a sinful bite of melted cheese on freshly toasted bread, imagine
Healthy Goodness.
 BALANCE SHEET

Balance Sheet of Britannia ------------------- in Rs. Cr. -------------------

Industries
Mar '15 Mar '14 Mar '13 Mar '12 '1

12 mths 12 mths 12 mths 12 mths

Sources Of Funds
Total Share Capital 23.99 23.99 23.91 23.89
Equity Share Capital 23.99 23.99 23.91 23.89
Share Application Money 0.00 0.00 2.29 0.00
Preference Share Capital 0.00 0.00 0.00 0.00
Reserves 1,211.63 829.47 612.50 496.15
1,235.6
Networth 853.46 638.70 520.04
2
Secured Loans 4.30 4.62 5.23 0.58
Unsecured Loans 0.00 0.00 189.24 27.57
Total Debt 4.30 4.62 194.47 28.15
1,239.9
Total Liabilities 858.08 833.17 548.19
2
Mar '15 Mar '14 Mar '13 Mar '12

12 mths 12 mths 12 mths 12 mths

Application Of Funds
Gross Block 986.66 929.10 777.53 673.06
Less: Revaluation Reserves 0.00 0.00 0.00 0.00
Less: Accum. Depreciation 460.71 383.44 325.85 293.97
Net Block 525.95 545.66 451.68 379.09
Capital Work in Progress 48.22 97.22 128.44 79.73
Investments 661.04 372.99 279.60 428.94
Inventories 345.74 366.86 331.49 382.28
Sundry Debtors 70.98 53.69 77.12 52.14
Cash and Bank Balance 186.67 65.78 64.48 30.94
Total Current Assets 603.39 486.33 473.09 465.36
Loans and Advances 623.39 342.24 350.22 319.22
Fixed Deposits 0.00 0.00 0.00 0.00
1,226.7
Total CA, Loans & Advances 828.57 823.31 784.58
8
Deferred Credit 0.00 0.00 0.00 0.00
Current Liabilities 811.16 660.98 576.90 882.53
Provisions 410.91 325.38 272.96 241.62
1,222.0
Total CL & Provisions 986.36 849.86 1,124.15
7
Net Current Assets 4.71 -157.79 -26.55 -339.57
Miscellaneous Expenses 0.00 0.00 0.00 0.00
1,239.9
Total Assets 858.08 833.17 548.19
2

Contingent Liabilities 324.22 250.36 351.20 327.87

Book Value (Rs) 103.03 71.17 53.24 43.54
 PROFIT AND LOSS ACCOUNT

------------------- in Rs. Cr. -------------------

Profit & Loss account
Mar '15 Mar '14 Mar '13 Mar '12 Mar '11

12 mths 12 mths 12 mths 12 mths 12 mths

Income
Sales Turnover 7,344.79 6,307.39 5,615.49 5,032.81 4,255.79
Excise Duty 168.80 0.00 0.00 58.62 32.27
Net Sales 7,175.99 6,307.39 5,615.49 4,974.19 4,223.52
Other Income 229.59 14.82 55.47 58.53 48.92
Stock Adjustments 25.48 12.58 10.16 4.79 17.89
Total Income 7,431.06 6,334.79 5,681.12 5,037.51 4,290.33
Expenditure
Raw Materials 4,356.44 3,835.34 3,539.83 3,193.06 2,789.23
Power & Fuel Cost 67.42 65.12 52.27 38.25 29.55
Employee Cost 176.79 172.45 143.50 145.87 119.93
Other Manufacturing
0.00 0.00 0.00 0.00 0.00
Expenses
Selling and Admin Expenses 0.00 0.00 0.00 0.00 0.00
Miscellaneous Expenses 1,829.32 1,650.44 1,518.52 1,322.57 1,071.22
Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00
Total Expenses 6,429.97 5,723.35 5,254.12 4,699.75 4,009.93
Mar '15 Mar '14 Mar '13 Mar '12 Mar '11

12 mths 12 mths 12 mths 12 mths 12 mths

Operating Profit 771.50 596.62 371.53 279.23 231.48
PBDIT 1,001.09 611.44 427.00 337.76 280.40
Interest 1.21 5.44 37.74 38.07 37.75
PBDT 999.88 606.00 389.26 299.69 242.65
Depreciation 117.27 63.38 57.08 47.32 44.59
Other Written Off 0.00 0.00 0.00 0.00 0.00
Profit Before Tax 882.61 542.62 332.18 252.37 198.06
Extra-ordinary items 0.00 0.00 0.00 0.00 0.00
PBT (Post Extra-ord Items) 882.61 542.62 332.18 252.37 198.06
Tax 260.20 172.79 98.31 65.63 52.77
Reported Net Profit 622.41 369.83 233.87 186.74 145.29
Total Value Addition 2,073.53 1,888.01 1,714.29 1,506.69 1,220.70
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 191.88 143.91 101.66 101.53 77.64
Corporate Dividend Tax 39.06 24.46 17.28 16.47 12.60
Per share data (annualised)
Shares in issue (lakhs) 1,199.26 1,199.26 1,195.26 1,194.51 1,194.51
Earning Per Share (Rs) 51.90 30.84 19.57 15.63 12.16
Equity Dividend (%) 800.00 600.00 425.00 425.00 325.00
Book Value (Rs) 103.03 71.17 53.24 43.54 37.78
 FINANCIAL RATIOS

------------------- in Rs. Cr. -------------------

Mar
Mar '14 Mar '13 Mar '12 Mar '11
'15

Investment Valuation Ratios

Face Value 2.00 2.00 2.00 2.00 2.00
Dividend Per Share -- -- -- -- --
Operating Profit Per Share
72.04 52.30 35.19 26.02 19.81
(Rs)
Net Operating Profit Per Share
655.27 576.42 517.50 459.22 385.88
(Rs)
Free Reserves Per Share (Rs) -- -- -- -- --
Bonus in Equity Capital 91.45 91.45 91.76 91.83 91.83
Profitability Ratios
Operating Profit Margin(%) 10.99 9.07 6.80 5.66 5.13
Profit Before Interest And Tax
9.05 7.83 5.57 4.49 3.67
Margin(%)
Gross Profit Margin(%) 9.15 7.86 5.61 4.54 3.72
Cash Profit Margin(%) 8.64 6.89 5.33 4.71 4.26
Adjusted Cash Margin(%) 8.64 6.89 5.33 4.71 4.26
Net Profit Margin(%) 8.76 5.71 4.19 3.63 2.91
Adjusted Net Profit
8.66 5.69 4.16 3.59 2.87
Margin(%)
Return On Capital
58.28 61.03 44.45 52.42 24.80
Employed(%)
Return On Net Worth(%) 55.46 49.80 46.70 48.76 41.20
Adjusted Return on Net
43.68 49.85 46.77 48.81 41.16
Worth(%)
Return on Assets Excluding
103.53 66.19 46.48 34.25 27.29
Revaluations

RATIO ANALYSIS

1 . Current Ratio: Current Assets/Current Liabilities

=1,226.78/1,222.07

=1.00:1

2 .Quick Ratio: Quick Assets /Quick Liabilities

= (1,226.78-345.74) / (1,222.07-410.91)

= 881.04/811.16

=1.09:1

3.Proprietory Ratio: Proprietors Funds /Total Assets

 = 1,235.62 /1,239.92

=0.997:1

4. Debt Equity Ratio: Debt/ Equity

=4.30 / 1,235.62

=3.48:1

5. Stock To Working Capital Ratio: Stock/Working Capital*100

=345.74/4.71*100

= 7,340.55

6. Fixed Asset Turnover Ratio: Total Sales / Gross Fixed Assets

=7,175.99 / 623.39

= 11.51 times

7. NET Profit Ratio: NPAT/ Net Sales *100

= 622.41 /7,175.99*100

=8.67%

8. Operating Expenditure Ratio: Operating Exp / Sales *100

=6,429.97 / 7,175.99*100

=89.60%
9. Operating Net Profit Ratio: Operating Profit / Sales *100

=771.50 / 7,175.99 *100

=10.75%

10. Return On Shareholder Fund: EAT/Shareholders Funds *100

=622.41 / 1,235.62*100

= 50.37 %

CORE VALUES

Britannias have the highest respect for one another.

We encourage our people to work in cross functional teams with a concerted aim of
sharing knowledge.

We are accountable to ourselves for delivery to our consumers. We deliver

continuous and sustainable financial performance for the company and all its
stakeholders.

OUR CORE VALUES

It's not hard to make decisions when you know what your values are. Those
words capture, in a nutshell, what we believe in. Our foundation is built on the core
values that we stand by and demonstrate through our actions every single day.

LEADERSHIP

We have the courage to shape a better future for all our stakeholders.

OWNERSHIP

We hold ourselves accountable for consistent, sustainable results by focusing on

opportunities & eliminating obstacles, internal or external.

PASSION FOR LEARNING

We apply thought, creativity & sound business judgment to meet aggressive goals
& continually invest in people, products & processes.

RESPECT

We value all stakeholders, our communities & the environment and treat them with
dignity and respect.

VISION AND MISSION

VISION

To dominate the food and beverage market in India with a distinctive range of
Tasty yet Healthy Britannia brands.

MISSION
To dominate the food and beverage market in India through profitable range of
Tasty yet Healthy products by making every Indian a Britannia consumer. We
want too be part of our consumer at home, out of home, a natural part of life.

CONCLUSION

In recent times a small number of former building societies have moved away from
their roots to become public limited companies. However, in doing this, the
essential contact point they have with their owners is immediately lost. The new
owners become shareholders instead of members, and will be more interested in
share prices and dividends than customers. Becoming a public company has
obvious short term advantages, but in the longer term it is not necessarily a
wholesome proposition.
In contrast, Britannia has chosen to keep to its principles. It has seen the unique
relationship that it has with its members/customers as being its key strength. In a
competitive environment it has chosen the path of building even stronger customer
relationships as being the route to successful growth.

The Chief Executive of Britannia has set out this strategic plan in the following
way:

'Being mutual allows us to concentrate on our mission: To improve the financial

health of our members and customers by satisfying their evolving borrowing,
investment and protection needs.'
The implication is that by taking an alternative route, e.g. becoming a public
limited company would act as a distraction whereby the organization would lose its
way and forget its real purpose.

Focusing on customer satisfaction and needs is an import aspect for any

organization in order to trustworthy and long lasting relationship with the
company. Its a give and take relationship between the company and the customers
as the saying goes Customer is the King of Market so their needs and wants
becomes our priority which would further lead to our own benefit.

REFERENCES

www.moneycontrol.com
www.britannia.co.in