PROJECT REPORT ON

“CASH FLOW STATEMENT: BRITANNIA INDUSTRIES LIMITED”

SUBMMITED BY

Onkar Anilkumar Awachare

(BBA)(A)-(44)

UNDER THE GUIDANCE OF:

PROF. SNEHA VADVI

SUBMMITED TO

Savitribai Phule Pune University

SUBMMITED IN PARTIAL FULFILMENT OF

BACHELOR OF BUSINESS ADMINISTRATION

Indira College of commerce and science

(2017-2020)

1
 DECLARATION
I ONKAR.A.AWACHARE student of Bachelor of Business Administration, Indira College of
Commerce and Science, Pune Declare that this project report entitled “A STUDY Of CASH FLOW
STATEMENT Of BRITANNIA INDUSTRIES Ltd.” Submitted is my original work.

The finding of the report is based on the information collected by me during the study. And the
result embodied in this study has not been submitted to any other university for the award of
the Degree

Place-

Date- Onkar Anilkumar Awachare

2
 ACKNOWLEDGEMENT
It gives me great honor while expressing my sense of gratitude towards all those who helped and
guided me during this project.

I would also like to thank my faculty guide Prof. Sneha Vadvi of Indira College of Commerce and
Science, Pune for her complete guidance and encouragement in completion of this project.

I would also take opportunity to thank Dr. Janardhan Pawar (Principal In-charge) and Dr.
Thomson Varghese (HOD-BBA and BBA IB) of Indira College of Commerce and Science, Pune for
giving me the opportunity to be part of this institution and encouraging me to complete this
project

I would also like to thank to student colleagues for their encouragement and support during my
project and also to all those who have helped me directly or indirectly in preparing project report.

Onkar Anilkumar Awachare

BBA

ICCS, PUNE

Summary

3
The cash inflows and cash outflows in the cash flow statement are segmented into cash flow from
operations, investing, and financing. These details provide insight in the liquidity and solvency,
as well the entities ability to meet future needs for capital and growth.

A Cash Flow Statement (also called the Statement of Cash Flows) shows how much cash is
generated and used during a given time period. It is one of the main financial statements analysts
use in building a three statement model. The main categories found in a cash flow statement are
(1) operating activities, (2) investing activities, and (3) financing activities of a company and are
organized respectively. The total cash provided from or used by each of the three activities is
summed to arrive at the total change in cash for the period, which is then added to the opening
cash balance to arrive at the cash flow statement’s bottom line, the closing cash balance.

One of the primary reasons cash inflows and outflows are observed is to compare the cash from
operations to net income. This comparison helps company management, analysts, and investors
to gauge how well a company is running its operations. The cash flow statement reflects
the actual amount of money the company receives from its operations. The reason for the
between cash and profit is because the income statement is prepared under the accrual basis of
accounting, where it matches revenues and expenses for the accounting period, even though
revenues may actually not have yet been collected and expenses may not have yet been paid. In
contrast, the cash flow statement only recognizes cash that has actually been received or
disbursed.

4
5
 INDEX

Sr. No. TOPIC PAGE NO.

1. INTRODUCTION 9

3. RESEARCH METHODOLOGY 12

3. TECHNIQUES OF ANALYSIS 13

3. LIMITATIONS OF THE STUDY 15

5. COMPANY PROFILE 16

6. MARKETTING STRATEGY 19

7. SWOT ANALYSIS 20

8. PORTERS 5 FORCES MODEL 21

9. BCG MATRIX 22

10. BRITANNIA CSR & BISCUIT INDUSTRY 23

11. INDUSTRY ANALYSIS 24

12. PROFIT & LOSS STATEMENT & CASH FLOW STATEMENT ANALYSIS 28

13. OBSERVATIONS AND FINDINGS 48

14. CONCLUSION 49

15. ANNEXURE 50

6
TABLE LIST

Sr. No. Table no. Table Name

1 T1 BRITANNIA V/S. PARLE

2 T2 MARKET SHARE – BRAN DWISE

3 T3 MARKET SHARE – SECTOR WISE

4 T4 MARKET SHARE- REGION WISE

5 T5 INDUSTRY ANALYSIS

6 T6 Profit & Loss Account year ending March 2019

7 T7 Cash Flow of Britannia Industries march 2019

8 T8 Profit & Loss Account year ending March 2018

9 T9 Cash Flow of Britannia Industries march 2018

10 T10 Profit & Loss Account year ending March 2017

11 T11 Profit & Loss Account year ending March 2017

12 T12 Cash Flow of Britannia Industries march 2016

13 T13 Profit & Loss Account year ending March 2016

14 T16 Cash Flow of Britannia Industries Interpretation last 4

years

7
GRAPH LIST

Sr. No. Graph no. Graph Name

1 G1 Profit & Loss Statement Graph year ending March
2019
2 G2 Cash Flow Statement Graph 2019

3 G3 Profit & Loss Statement Graph year ending March

2018
4 G4 Cash Flow Statement Graph 2018

5 G5 Profit & Loss Statement Graph year ending March

2017
6 G6 Cash Flow Statement Graph 2017

7 G7 Profit & Loss Statement Graph year ending March

2016
8 G8 Cash Flow Statement Graph 2016

9 G9 CASH FLOW STATEMENT GRAPH (1) OF BRITANNIA

INDUSTRIESBRITANNIA INDUSTRIES FOR LAST YEARS

10 G10 CASH FLOW STATEMENT GRAPH (2) OF BRITANNIA

INDUSTRIESBRITANNIA INDUSTRIES FOR LAST YEARS

8
Chapter - 1
INTRODUCTION
A cash flow statement is essential to any business as it can be budgeting by accounting the timing
and fixing the future cash flows. The statement of cash flow like other to key. A financial
statement is a collection of reports presenting inflows and outflows of cash in forms of receipt
and payment.

This involves the various activities of business including operating. Investing and financing during
a specific period.

A cash flow statement finds out the inward and outward flow of money in a business and
therefore acts as a bridge between the income statement and balance sheet. The change in the
cash per period, as well as the beginning and ending balances of cash, are present in a cash flow
statement. While summarizing the amount of cash and cash equivalents flowing in and out of the
company, also measures to manage company’s cash position.

CASH FLOW STATEMENT FORMAT

The format of cash flow statement includes mainly three parts namely, cash from working
activities, and cash from financing activities. GAAP, a fourth part, the disclosure of non-cash
activities is included when cash flow is produce under the generally accepted accounting
principles.

Operating cash flow

Operating activities reflects the amount of cash generated from products and services of a
company and includes the primary revenue producing activities of the business. There are two
modes of presentation of operating cash flows.

1) Direct Presentation

2) Indirect presentation

The direct presentation is a simple but rarely used method which presents operating cash flows
simply as a list of cash flows. On the other hand, an indirect method is widely used and hence a
common presentation of operating cash flows as a reconciliation from profit to cash flow. Under
the indirect method, amortization, deferred tax, depreciation, revenues received from investing
activities and profit or loss associated with a noncurrent asset are included.

9
INVESTING CASH FLOW
The acquisition and disposal of non-current of non-current asset and any other sources of cash
from a company’s investment included in a investing activities. Typically, investing cash flow
include the cash flow associated with buying and selling the property. Marketable securities and
therefore cash changes from investing are ‘crush out’ items. For example, lending money is
considered an investment activity.

FINANCING CASH FLOW

Borrowing and repaying the money, issuing stock and paying the dividends are some of the
financing activities. This activities result in changes in the size of equity capital and borrowings of
the entity.

How to Prepare a Statement of Cash Flows?

The operating section of the statement of cash flows can be shown through either the direct
method or the indirect method. With either method, the investing and financing sections are
identical; the only difference is in the operating section. The direct method shows the major
classes of gross cash receipts and gross cash payments. The indirect method, on the other hand,
starts with the net income and adjusts the profit/loss by the effects of the transactions. In the
end, cash flows from the operating section will give the same result whether under the direct or
indirect approach, however, the presentation will differ.

The International Accounting Standards Board (IASB) favors the direct method of reporting
because it provides more useful information than the indirect method. However, it is believed
that greater than 90% of Companies use the indirect method.

10
Direct Method v/s Indirect Method of Presentation
There are two methods of producing a statement of cash flows, the direct method, and the
indirect method. In the direct method, all individual instances of cash that is received or paid out
are tallied up and the total is the resulting cash flow. In the indirect method, the accounting line
items such as net income, depreciation, etc. are used to arrive at cash flow. In financial modeling,
the cash flow statement is always produced via the indirect method. Below is a comparison of
the direct method vs the indirect method.

What Can the Statement of Cash Flows Tell Us?

Cash from operating activities can be compared to the company’s net income to determine the
quality of earnings. If cash from operating activities is higher than net income, earnings are said
to be of “high quality.” This statement is useful to investors because, under the notion that
cash is king, it allows investors to get an overall sense of the company’s cash inflows and
outflows and obtain a general understanding of its overall performance. If a company is
funding losses from operations or financing investments by raising money (debt or equity) it will
quickly become clear on the statement of cash flows Three Sections of the Statement of Cash
Flows:

1. Operating Activities: The principal revenue-generating activities of an organization and other

activities that are not investing or financing; any cash flows from current assets and current
liabilities

2. Investing Activities: Any cash flows from the acquisition and disposal of long-term assets and
other investments not included in cash equivalents

3. Financing Activities: Any cash flows that result in changes in the size and composition of the
contributed equity capital or borrowings of the entity

11
 RESEARCH METHODOLOGY

A research design is the set of methods and procedures used in collecting and analyzing measures
of the variables specified in the problem research. The design of a study defines the study type
(descriptive, co-relational, semi- experimental, experimental, review, meta-analytic) and sub
(e.g., descriptive-longitudinal case study), research problem, hypotheses, independent and
dependent variables, experimental design, and, if applicable, data collection methods and a
statistical analysis plan. A research design is a framework that has been created to find answers
to research questions.

DESCRIPTIVE RESEARCH:
This is kind of research structure which is concerned with describing the characteristics of the
problem. In this way the main purpose of such a research design is to present a descriptive picture
about the marketing problem on the basis of actual facts. For this it is important to obtain the
complete and actual information about the subject.

12
 TECHNIQUES OF ANALYSIS:-
The schedule that was planned to be expected or the methodology of approach may be explained
as follows.

i. An overview of the procedure followed in analyzing the data obtained. The methods Followed
are: Ratio analysis an effective tool in analysis.

ii. Proper and effective collection of various data required in to with the analysis with the
relevance with current economic growth.

iii. An effective analysis with an eye for errors or blunders that occurs due to inefficiency. This is
the most prominent feature of the study and was executed with utmost care and diligence.

iv. It also included the study of various circulars and notes that were passed by the management
in this regard. Thus having a higher hand on literature study of a project as whole.

TYPES OF DATA AND DATA COLLECTION

SECONDARY DATA:

Secondary are those which have already been collected by someone and else and have already
been passed through the statistical process

All the data has been collected from internal sources that

Includes:-

1) Books

2) Websites

3) Official files

4) Company’s mutual related to working capital

13
TOOLS FOR DATA COLLECTION:

The data so collected from the various annual reports and financial statements for 5 years been
classified and tabulated for better understanding and give a complete a given picture at 1 place.

TOOLS FOR ANALYSIS:

The tabulated data has been collected thoroughly through various ratios and graphs, which is
used.

14
Chapter -4

LIMITATIONS OF THE STUDY:

1) The study is limited to finance and the finding need not apply in similar sense to other firms.

2) This interference that have been framed only on the basis of Financial Statements.

3) Based on the limited information it is not possible to arrive at a proper conclusion.

4) Limitations of the financial analysis.

15
16
KEY EXECUTIVES

CHAIRMAN– Mr. Nusil Neville Wadia

Managing Director- Ms. Vinita Ball

Directors – Mr. A.K.Hirjee, Dr. AjaiPuri ,Mr. Avijit Deb , Mr. Jeh N Wadia ,
Mr. KekiDadiseth , Mr. Nasser Munjee , Mr. Ness NusliWadia

Mr. Nimesh N Kampani , Mr. Pratapkhanna , Mr.S.S.Kellkar, Dr. Vijay L. Kelkar

VP & Chief Operating Officer: Neeraj Chandra

Background:Britannia Industries Ltd (Britannia) was established in 1892 in Kolkata,west Bengal

as a company which manufactured biscuits. Kerla businessman K.Rajanpillai secured control of
the group in the late 1980’s becoming known in India as the ‘Biscuit king’. In 1993, the Wadia
Group acquired a stake in Associated Biscuits International (ABIL), and become an equal partner
with GroupeDan one in Britannia Industries Limited.

Company Description: Britannia Industries Limited is a company based in India which

operates in two business segments which include bakery products such as biscuits,bread , cakes
and rusk and dairy products such as milk , butter, cheese, ghee and dahi. Britannia Manufactures
Dairy products from its plants located in Kolkata, Delhi, Chennai, Mumbai and Rudrapur. The
company has a total installed capacity of 163,500 MT of biscuits and protein foodstuffs. Key
brands include Tiger, God Day, Milk Bikis, Treat and Marie. Britannia exports its products to
countries in the Middle East and USA, Ghana and Singapore

COMPANY ANALYSIS:

Present Share Price as on 11th Feb 2020

• NSE: 3,132.75 which has decreased by -22.85(0.72%) to its previous day closing
• BSE; 3,132.00 which has decreased by -23.15(0.73%) to its previous day closing

Britannia has an estimated 38% market share

17
Britannia Industries ltd: Milestones
Established – 1892 – initial investment Rs 295 – Britannia Biscuit Company 1910- Mechanized
operations

1975 – Took over the Distribution from Parry’s

1978 – Indian Shareholding Crossed 60%

1979 – Rechristened Britannia Industries Limited

1983– Revenues crossed 100 Cr

1992 – Wadia group acquired stake and became an equal partner with Grope Danone

1993 – Sales crossed 1, 00,000tones of biscuits

1997- New corporate odenty – “EatHealthy, Think Better “– enters Dairy market

2000 – Forbes Global Ranking – Britannia among top 300 small companies

2002 – JV with Fonterra – World’s second largest Dairy Company, Britannia New Zealand Foods
Pvt ltd. Is born,

Economic Times – BIL India’s 2ndmost trusted Brand

Forbes Global Ranking – Britannia among top 200 small companies

2004 – Volumes cross 3, 00,000tones of biscuits

2005 – Rebirth of tiger – “SwashthKhao Tan Man Jao’

Commissioning of new plant in Uttaranchal – ahead of schedule

2009 to 2012– New and renovated products came up like nutria Choice Multigrain Thins and
Roasty Chocolate Ecstacy, Treat Fruit Creams, Marie with Honey and Oats , Good Day Fresh Bake

Buterscotch, 50-50 Snackuits. Etc. And in breads 100% Whole Wheat Multi fiber breads, Honey-
Oats. The Tiger-Zor Chocolate Etc.

In the manufacturing Category BIL units of Delhi,Gwalior, Bidadi, Bangalore,Khapoli won the IMC
Ramkrishna Bajaj National Quality Award 2011

18
MARKETING STATERGY
Marketing is one of the ever changing fields in the management arena. The market face new
challenges everyday and companies need to respond to it quickly and positively. Therefore new
marketing ideals and strategies are being discovered continuously to meet up the challenges.

Following strategies adopted by the organization

Quality of the product and customer satisfaction:

Customers always want good quality product. Customer satisfaction is very important thing to
fulfill. Britannia has products for each level of the pyramid and has a very wide range of good
quality products to keep its customers happy.

Customer relation and retention:

Customer relations are really important parts of the company’s marketing strategy. It is
important to form a good relationship with the customer while keeping the old customer and
trying to make new ones.

Awareness of competitor’s activity:

Every organization should keep a watch on the competition in the market and take steps to outdo
the competition. Parle and ITC are its main competitors in the biscuit industry. Nestle and Amul
in Dairy products and MTR in ready to make foods

Emphasis on Global thinking and Local Marketing Planning:

Companies are expanding by pursuing market beyond their borders. Britannia has a wide range
of products in the Middle-East. Those products are specially made to the tastes of the people
belonging to those regions. When a company enters other countries it has to follow the tradition
of that country and also plan for local market that which type of product has more demand and
how can it run in market

Promotional Strategy

Promotion is one of the 4P’s of marketing mix. It is very important in the making of the any
company. Britannia runs a lot of advertisements in print and on television. Its taglines stay with
the people for long time. The ‘ting ting ta ting’ music in every advertisement is now programmed
in the heads of the people who have watched the Advertisements.

19
SWOT ANALYSIS OF BRITANNIA
Strengths

Widely accepted in all generations

Easily available in all forms

Fulfill one f the Basic requirements among Air, Water, Food& Shelter

Preserves the non-seasonal food and Makes it Available all throughout the year

Provide good instant remedy for hunger I the form of readymade food

Weakness

Increase the cost of food product

Decrease nutritional value

Industry and technology requires high investment

Regular usage of processed food can cause alteration in healthy.

Opportunities

Increase economy of India.

Good quality of product.

Generate employed opportunity.

Provide competition for foreign and domestic competitors.

Provide their products at a cheaper rate to the nation.

Threats

Sometimes there is a case of low quality product production in the process to earn more profits.

Emerging competitors inmarket

Lack of technology

20
Porters 5 Forces Model: Britannia
Threat of New Entrants is Medium

Since there is very high product differentiation and a very powerful distribution network which
makes it very hard for new entrant to enter the Market. The prices can’t be increased to get
extent i.e. there is not much flexibility in prices, so we can say that it is an extremely price
sensitive. It has great dependency on the agricultural sector for wheat which is a main component
for most of its products.

Rivalry among existing firms is high

The major players in this industry are Britannia, Parle, ITC Ltd, PriyaGold, Bakeman, Bonn etc. The
companies Britannia & Parle have an almost equal market share as compared to these ITC ltd
holds a lower market share. Since there is neck to neck competition the companies kee a close
notice of the changing strategies of each other

Bargaining power of suppliersis high

The main ingredient required for the manufacturing of biscuits is Wheat. When there is inflation
they have to purchase wheat at the price which the farmers quote since wheat does not have a
close substitute and leaves the companies with no other option

Threat of Substitute Products is Medium

The substitutes which are consumed instead of biscuits are namkeens, chips, potato wafers etc.
Even though the biscuits have such substitutes they have become a staple part of people’s
everyday life. The biscuits are a low priced commodity, but even if there is a small increase in the
price, it would still be acceptable by people in the urban areasbut in case of rural areas it may
cause people to shit to substitutes.

Bargaining power of buyers is high

The consumers have an option of switching from one brand to the other with due accordance to
their liking of price, quality and taste. This is the reason why there is not much flexibility given to
the biscuit manufacturers to increase the prices of their products or compromise on the quality
of their product. The consumers are also going for bulk purchases at cheaper rates from bakery
stores

21
22
Britannia: CSR

Britannia India Limited is a company which stands at a great position in India. The children and
the adults can associate with the brand as in it brings backs fond memories of theirs. The
company has carved a place for itself in the Indian live and it has also made tea-time special for
generations. This is a fact that is of great consideration to the Managing Director Vinita Bail and
she does not take this light

In 1997 Britannia underwent-branding and adopted the mantra ‘Eat Healthy’, ‘Think Better’, and
eventually cut out all transfats from the formulation of all its Biscuits. It was the first to
acknowledge the health problems that were associated with a diet which was high in. They were
also the first ones to reduce sodium and sugar levels in their products. Sustainability and the
health of the public key issues for all CSR activities at Britannia., The Britannia Nutrition
Foundation works towards the control and prevention of malnutrition. The Navjyoti project was
launched to fight iron malnutrition through the supplementation of Biscuits with iron. These
biscuits are distributed to many mid-day meal schemes in Andhra Pradesh that reach
underprivileged children. During the recession, the company adopted various other CSR
measures to cut costs and improve productivity. Bail says that focusing on reducing energy
requirements and cutting wastes through better use of energy was an essential part of revenue
management.

SNEAK PEAK INTO INDIA’S BISCUIT INDUSTRY

Indian Biscuit Industry contributes Rs8000 crore to the FMCG industry and provide vast
opportunity for growth .Indian Biscuit Industry can be segregated into 2 sectors:ORGANIZED AND
UNORGANIZE. Market share for organized sector stand at whopping 70% and that of
unorganizedsector at 30% Apart from big 3 companies (ITC, PARLE, and BRITANNIA) there are
150 medium to small biscuit factories operating in India. The Industry is now facing problem from
increase in prices of raw material, also increased government VAT to 12.5% has increased the
woes.

States which have higher intake of biscuits are Uttar Pradesh, Karnataka, Maharashtra, West
Bengal and Andhra Pradesh. The Most industrially developed states: Hold maximum amount of
consumption of biscuits. The jaw dropping fact is the rural India consumes 55% of biscuit
produced in India.

The Federation of Biscuit Manufactures of India has confirmed a Bright future of India’s Biscuit
Industry. According to FBMI growth of 10% will be achieved for next 10 years without
comprehensive fluctuations.

23
LIST OF PLAYERS IN THE INDUSTRY

PARLE, ITC, SURYA FOODS, CADBURRY, SMITH KLIME BEECHAM< UNITED BISCUITS AND OTHERS

LIST OF REGIONAL BRANDS

HARVEST GOLD, CREMICA, PRIYAGOLD, BONN, MRS BECTOR, SABISCO.

LIST OF FOREIGN PLAYERS

HEINZ, UNITED BISCUITS, NESTLE, McVITTIES.

BRITANNIA V/S. PARLE(T1)

DESCRIPTION BRITANNIA PARLE

Established 1896 1929
Nature of Business Public Limited Family run Business
No. of Manufacturing Units 5 Own .40 CMU 8 Own .60 CMU
Market Share 32.80% 32.94%
Promotion Cricket events and players Celebrities
New Scope Environment Health and Wellness

MARKET SHARE – BRAN DWISE (T2)

BRITANNIA 32%
PARLE 32%
ITC 11%
PRIYA GOLD 15%
OTHERS 10%

MARKET SHARE – SECTOR WISE(T3)

URBAN RURAL
85-75% 65-75%

MARKET SHARE- REGION WISE (T4)

NORTH ZONE 25%

WEST ZONE 23%
EAST ZONE 28%
SOUTH ZONE 24%
CRITICAL SUCCES FACTORS OF BISCUIT INDUSTRY WITH REFRENCE TO BRITANNIA

24
 1. India’s lower and middle class segment will continue to hold the key
2. Distribution and Advertising and Launching of new products
3. Britannia to add new variants in its existing basket
4. Focus on urban markets
5. Alliance with suppliers, retailers, distributors, other linkages.

INDUSTRY ANALYSIS(T5)

BRITANNIA PARLE ITC MRS.BECTOR BONN

Market share: Market share: 31% Market share: 9% Market share: Market share:
35% 5% 5%
Tiger: Tiger; Parle G: 1, 2, Sunfeast Cremica Glucobin:
Tiger Cream: 3,4,5,6,7,8,9,10,20, Glucose: Glucose:
Orange, Elaichi, 30,40,50 Glucose,
Chocolate, Cashew, Nice
Pineapple, Malt & Milk
Strawberry,
Butterscotch;
Tiger Banana;
Tiger Crunch
50-50: Krack Jack: Rs 5, 7, SunfeastSnacky: CremicaSalties: Mini Bits:
50-50: Sweet 10, 15, 20 Classic Salted, Zeera Cheese,
and salty; Chili Flakes Cremica Party Chilly Tomato,
Maska Chaska; Namkin: RS.: 5, 10 Crackers: Twin Bite.
Italiano pizza,
Swiss cheese & Monaco: Sun feast Cremica
Chilly and Plain: Jeera Flavor Sweet ‘n Salty: TikTok:
Chinese Hot & (Zabardast Jeera)
Sweet; Rs. 5, 7, 10, 20
Snackuits
Time Pass:
Classics Salted,
Nimkee; Baked:
Mindless
Masala, Loafer
Lemon, Tapori
Tomato.

25
26
27
PROFIT & LOSS STATEMENT & CASH FLOW STATEMENT ANALYSIS
In order to identify the current Cash flow Statement of a company, presence of the financial
accounts is mandatory.

Profit & Loss Account year ending March 2019(T6)

PROFIT & LOSS ACCOUNT OF BRITANNIA INDUSTRIES (in MAR '19

Rs. Cr.)
Period 12 months
INCOME
Sales Turnover 10,482.45
Net Sales 10,482.45
Other Income 190.52
TOTAL INCOME 10,721.99
EXPENDITURE
Raw Materials 6,356.93
Power & Fuel Cost 140.44
Employee Cost 321.64
Other Manufacturing Expenses 0
Miscellaneous Expenses 1,612.41
TOTAL EXPENSES 8,869.34
OPERATING PROFIT 1,662.13
PBDIT 1,852.65
PBDT 1,851.11
Depreciation 135
Profit Before Tax 1,716.11
PBT (Post Extra-ord Items) 1,716.11
Tax 593.91
REPORTED NET PROFIT 1,122.20
Total Value Addition 2,512.41
Equity Dividend 300.15
Corporate Dividend Tax 61.7
PER SHARE DATA (ANNUALISED)
Shares in issue (lakhs) 2,403.18
EARNING PER SHARE (RS) 46.7
Equity Dividend (%) 1,500.00
Book Value (Rs) 168.09

28
 MARCH 2019
12,000.00

10,000.00

8,000.00

6,000.00

MAR '19 12 mths

4,000.00

2,000.00

0.00

Profit & Loss Statement Graph year ending March 2019(G1)

29
Cash Flow of Britannia Industries march 2019(T7)

Cash flow of Britannia Industry (in cr) 2019

Cash flows from operating activities
Net income 1,15,91,200
Depreciation & amortization 16,18,800
Stock-based compensation 1,61,200
Change in working capital -24,900
Inventory -12,72,100
Other working capital 75,45,700
Other non-cash items -12,76,800
Net cash provided by operating activities 1,15,57,800
Cash flows from investing activities
Investments in property, plant and equipment -40,12,100
Acquisitions, net -
Purchases of investments -33,41,200
Sales/maturities of investments -
Net cash used for investing activities -85,55,300
Net change in cash -5,24,300
Cash at beginning of period 10,78,400
Cash at end of period 5,87,200
Free cash flow
Operating cash flow 1,15,57,800
Capital expenditure -40,12,100
Free cash flow 75,45,700

30
Interpretation

Period 12 months

NET PROFIT/LOSS BEFORE EXTRAORDINARY ITEMS AND TAX 1,15,91,200

Net Cash Flow From Operating Activities 1,15,57,800

Net Cash Used In Investing Activities -85,55,300

Net Cash Used From Financing Activities -326.26

Cash And Cash Equivalents Begin of Year 10,78,400

Cash And Cash Equivalents End Of Year 5,87,200

Cash And Cash Equivalents End

Of Year

Cash And Cash Equivalents

Begin of Year

NET INC/DEC IN CASH AND

CASH EQUIVALENTS

Foreign Exchange Gains / Losses

19-Mar

Net Cash Used From Financing

Activities

Net Cash Used In Investing

Activities

Net CashFlow From Operating

Activities

-1,000.00 0.00 1,000.00 2,000.00

Cash Flow Statement Interpretation Graph Year ending 2019(G2

31
Profit & Loss Statement year ending March 2018(T8)

PROFIT & LOSS ACCOUNT OF BRITANNIA INDUSTRIES (in MAR '18

Rs. Cr.)
Period 12 moths
INCOME
Sales Turnover 9,380.17
Net Sales 9,304.06
Other Income 155.93
TOTAL INCOME 9,464.17
EXPENDITURE
Raw Materials 5,796.49
Power & Fuel Cost 94.98
Employee Cost 294.87
Other Manufacturing Expenses 0
Miscellaneous Expenses 1,365.99
TOTAL EXPENSES 7,897.76
OPERATING PROFIT 1,410.48
PBDIT 1,566.41
PBDT 1,564.96
Depreciation 119.76
Profit Before Tax 1,445.20
PBT (Post Extra-ord Items) 1,445.20
Tax 497.31
REPORTED NET PROFIT 947.89
Total Value Addition 2,101.27
Equity Dividend 264.13
Corporate Dividend Tax 53.78
PER SHARE DATA (ANNUALISED)
Shares in issue (lakhs) 1,200.59
EARNING PER SHARE (RS) 78.95
Equity Dividend (%) 1,250.00
Book Value (Rs) 269.47

32
 MARCH 2018
10,000.00

9,000.00

8,000.00

7,000.00

6,000.00

5,000.00

4,000.00

3,000.00 MAR '18 12 mths

2,000.00

1,000.00

0.00

Profit & Loss Statement year ending March 2018(G3)

33
Cash Flow of Britannia Industries march 2018 (T9)

Cash flow of Britannia Industry (In Cr.) 2018

Net income 1,00,42,300
Depreciation & amortization 14,20,700
Stock-based compensation 86,400
Change in working capital 22,82,700
Inventory 87,600
Other working capital 82,58,400
Other non-cash items -9,64,400
Net cash provided by operating activities 1,24,87,700
Cash flows from investing activities
Investments in property, plant and equipment -42,29,300
Acquisitions, net 0
Purchases of investments -53,73,700
Sales/maturities of investments -
Net cash used for investing activities -95,62,600
Net change in cash 6,07,600
Cash at beginning of period 4,73,400
Cash at end of period 10,81,000
Free cash flow
Operating cash flow 1,24,87,700
Capital expenditure -42,29,300
Free cash flow 82,58,400

34
Interpretation
Period 12 months
NET PROFIT/LOSS BEFORE EXTRAORDINARY ITEMS AND TAX 1,00,42,300
Net Cash Flow From Operating Activities 1,24,87,700
Net Cash Used In Investing Activities -95,62,600
Cash And Cash Equivalents Begin of Year 4,73,400
Cash And Cash Equivalents End Of Year 10,81,000

Cash And Cash Equivalents End

Of Year

Cash And Cash Equivalents

Begin of Year

Net Cash Used In Investing

19-Mar
Activities

Net CashFlow From Operating

Activities

NET PROFIT/LOSS BEFORE

EXTRAORDINARY ITEMS AND
TAX

-1,000.00 -500.00 0.00 500.00 1,000.001,500.002,000.00

Cash Flow Interpretation Statement Graph 2018(G4)

35
Profit & Loss Statement year ending March 2017(T10)

PROFIT & LOSS ACCOUNT OF BRITANNIA INDUSTRIES (in MAR '17

Rs. Cr.)
Period 12 months
INCOME
Sales Turnover 8,684.39
Net Sales 8,414.37
Other Income 144.78
TOTAL INCOME 8,608.40
EXPENDITURE
Raw Materials 5,263.24
Power & Fuel Cost 75.04
Employee Cost 241.68
Other Manufacturing Expenses 0
Miscellaneous Expenses 1,357.44
TOTAL EXPENSES 7,259.47
OPERATING PROFIT 1,204.15
PBDIT 1,348.93
PBDT 1,347.59
Depreciation 96.43
Profit Before Tax 1,251.16
PBT (Post Extra-ord Items) 1,251.16
Tax 407.47
REPORTED NET PROFIT 843.69
Total Value Addition 1,996.23
Equity Dividend 239.95
Corporate Dividend Tax 48.85
PER SHARE DATA (ANNUALISED)
Shares in issue (lakhs) 1,200.01
EARNING PER SHARE (RS) 70.31
Equity Dividend (%) 1,100.00
Book Value (Rs) 215.16

36
 MARCH 2017
10,000.00

9,000.00

8,000.00

7,000.00

6,000.00

5,000.00

4,000.00 MAR '17 12 mths

3,000.00

2,000.00

1,000.00

0.00

Profit & Loss Statement Graph year ending March 2017(G5)

37
CASH FLOW OF BRITANNIA INDUSTRIES 2017(T11)

Cash flow of Britannia Industry 2017

Net income 80,61,100
Depreciation & amortization 11,34,100
Stock-based compensation -
Change in working capital 13,56,100
Inventory -3,50,400
Other working capital 71,06,000
Other non-cash items -6,75,100
Net cash provided by operating activities 96,13,700
Cash flows from investing activities
Investments in property, plant and equipment -25,07,700
Acquisitions, net -
Purchases of investments -21,09,300
Sales/maturities of investments -
Net cash used for investing activities -70,51,900
Net change in cash 78,500
Cash at beginning of period 4,31,400
Cash at end of period 5,09,900
Free cash flow
Operating cash flow 96,13,700
Capital expenditure -25,07,700
Free cash flow 71,06,000

38
Interpretation
Period 12 months
NET PROFIT/LOSS BEFORE EXTRAORDINARY ITEMS AND TAX 80,61,100
Net CashFlow From Operating Activities 96,13,700
Net Cash Used In Investing Activities -70,51,900
Cash And Cash Equivalents Begin of Year 4,31,400
Cash And Cash Equivalents End Of Year 5,09,900

Cash And Cash Equivalents End Of

Year
Cash And Cash Equivalents Begin
of Year
NET INC/DEC IN CASH AND CASH
EQUIVALENTS
Foreign Exchange Gains / Losses
17-Mar
Net Cash Used From Financing
Activities
Net Cash Used In Investing
Activities
Net CashFlow From Operating
Activities
NET PROFIT/LOSS BEFORE
EXTRAORDINARY ITEMS AND TAX

-500.00 0.00 500.00 1,000.00 1,500.00

CASH FLOW INTERPRETATION GRAPH 2017(G6)

39
Profit & Loss Statement year ending March 2016(T12)

PROFIT & LOSS ACCOUNT OF BRITANNIA INDUSTRIES MAR '16

(in Rs. Cr.)
12 mths
INCOME
Sales Turnover 8,176.82
Net Sales 7,947.90
Other Income 87.88
TOTAL INCOME 8,042.90
EXPENDITURE
Raw Materials 4,643.10
Power & Fuel Cost 57.06
Employee Cost 209.21
Other Manufacturing Expenses 0
Miscellaneous Expenses 1,529.58
TOTAL EXPENSES 6,823.20
OPERATING PROFIT 1,131.82
PBDIT 1,219.70
PBDT 1,218.45
Depreciation 86.89
Profit Before Tax 1,131.56
PBT (Post Extra-ord Items) 1,131.56
Tax 382.47
REPORTED NET PROFIT 749.09
Total Value Addition 2,180.10
Equity Dividend 239.95
Corporate Dividend Tax 48.85
PER SHARE DATA (ANNUALISED)
Shares in issue (lakhs) 1,199.76
EARNING PER SHARE (RS) 62.44
Equity Dividend (%) 1,000.00
Book Value (Rs) 141.71

40
 MARCH 2016
9,000.00
8,000.00
7,000.00
6,000.00
5,000.00
4,000.00
3,000.00
MAR '16 12 mths
2,000.00
1,000.00
0.00

Profit & Loss Statement Graph 2016(G7)

41
CASH FLOW OF BRITANNIA INDUSTRIES 2016(T13)

Cash flow of Britania Industry 2016

Net income 88,46,100
Depreciation & amortisation 11,92,700
Stock-based compensation 54,700
Change in working capital -45,13,600
Inventory -22,13,500
Other working capital 8,15,000
Other non-cash items -8,43,300
Net cash provided by operating activities 44,12,800
Cash flows from investing activities
Investments in property, plant and equipment -35,97,800
Acquisitions, net -1,45,000
Purchases of investments -
Sales/maturities of investments 35,93,300
Net cash used for investing activities -14,98,500
Net change in cash -36,500
Cash at beginning of period 5,09,900
Cash at end of period 4,73,400
Free cash flow
Operating cash flow 44,12,800
Capital expenditure -35,97,800
Free cash flow 8,15,000

42
Period 12 months
NET PROFIT/LOSS BEFORE EXTRAORDINARY ITEMS AND TAX 88,46,100
Net CashFlow From Operating Activities 44,12,800
Net Cash Used In Investing Activities -14,98,500
Cash And Cash Equivalents Begin of Year 5,09,900
Cash And Cash Equivalents End Of Year 4,73,400

Cash And Cash Equivalents End Of

Year
Cash And Cash Equivalents Begin
of Year
NET INC/DEC IN CASH AND CASH
EQUIVALENTS
Foreign Exchange Gains / Losses
16-Mar
Net Cash Used From Financing
Activities
Net Cash Used In Investing
Activities
Net CashFlow From Operating
Activities
NET PROFIT/LOSS BEFORE
EXTRAORDINARY ITEMS AND TAX
-1,000.00 -500.00 0.00 500.00 1,000.00 1,500.00

CASH FLOW STATEMENT GRAPH 2016(G8)

43
CASH FLOW INTERPRETATION OF BRITANNIA INDUSTRIES FOR LAST 4 YEARS

(APRIL2015-MARCH2019)(T17)

CASH FLOW OF BRITANNIA 2019 2018 2017 2016

INDUSTRIES (in Rs. Cr.) March March March March

44
PERIOD 12 months 12 12 12
months months months

NET PROFIT/LOSS BEFORE 1,716.11 1,445.20 1,251.16 1,131.56

EXTRAORDINARY ITEMS AND TAX

Net Cash Flow From Operating 1,113.65 1,182.58 401.94 877.69

Activities

Net Cash Used In Investing Activities -831.1 -822.78 -115.49 -659.37

Net Cash Used From Financing -326.26 -304.27 -283.8 -228.29

Activities

Cash And Cash Equivalents Begin of 66.84 11.31 8.66 17.62

Year

Cash And Cash Equivalents End Of 23.13 66.84 11.31 7.65

Year

45
 2,000.00

1,500.00

NET PROFIT/LOSS BEFORE

EXTRAORDINARY ITEMS AND TAX
Net CashFlow From Operating
1,000.00 Activities
Net Cash Used In Investing
Activities
Net Cash Used From Financing
Activities
500.00
Foreign Exchange Gains / Losses

NET INC/DEC IN CASH AND CASH

EQUIVALENTS
0.00 Cash And Cash Equivalents Begin
12 mths 12 mths 12 mths 12 mths of Year

19-Mar 18-Mar 17-Mar 16-Mar Cash And Cash Equivalents End Of

Year

-500.00

-1,000.00

CASH FLOW STATEMENT GRAPH (1) OF BRITANNIA INDUSTRIESBRITANNIA

INDUSTRIES FOR LAST YEARS

(APRIL2014-MARCH2019)(G13)

46
 3,500.00

3,000.00

2,500.00
Cash And Cash Equivalents End Of
Year
2,000.00 Cash And Cash Equivalents Begin
of Year
NET INC/DEC IN CASH AND CASH
1,500.00 EQUIVALENTS
Foreign Exchange Gains / Losses

1,000.00
Net Cash Used From Financing
Activities

500.00 Net Cash Used In Investing

Activities
Net CashFlow From Operating
0.00 Activities
12 mths 12 mths 12 mths 12 mths 12 mths NET PROFIT/LOSS BEFORE
19-Mar 18-Mar 17-Mar 16-Mar 15-Mar EXTRAORDINARY ITEMS AND TAX
-500.00

-1,000.00

-1,500.00

CASH FLOW STATEMENT GRAPH (2) OF BRITANNIA INDUSTRIESBRITANNIA

INDUSTRIES FOR LAST YEARS

(APRIL2014-MARCH2019)(G14)

47
OBSERVATION AND FINDINGS

• Cash Flow statement is prepared by receipt and Payment method

• From the balance sheet of the company we can say that reserve or provision of the
company is also good It will consumed by the company in case of emergency.
• I found from the balance sheet of the company in cash transaction is to be done by the
company
• Cash ratio of the company is greater in the current year as compared to the previous year
So, Company has maintain enough cash balance in the company to pay its short term
liability
• The ratio analysis of the company gives data that there is scarcity of the cash in the
company because quick ratio and current ratio of the firm is less as compared to the
previous year

48
CONCLUSION

Through this project report we get to learn that how company builds its capital structure through
using various techniques. Through all the years of balance sheet we get to know how reliable
company is, company’s works for profit motive finance helps them to decide which is the best
place to invest their money so that good returns are expected and earned in future.

The concept of the optimal portfolio holds that rational investors will make decisions which
maximize returns at a given and comfortable level of risk

The entire month of the internship was a learning experience. Lots of ups and downs came in the
path of project completion but the end results were very promising. Company seems to be doing
quite well and its customer’s base seems satisfied. It has a lot of potential in sector only if it is
able to tap the untapped market and do more market penetration

This can be bought about by promoting its products and services and making people more aware
of the benefits of. Also it can have some flexibility in its procedure so that the consumers feel
more at home with the company and the process of complementing the file will be easier if the
sales executive and the managers corporate each other in their work. I came to know about the
work culture in Britannia Industries through this project there was too many learning like how
you manage your employees and manage them and help them is working

49
 Annexure

PROFIT & LOSS ACCOUNT OF BRITANNIA INDUSTRIES (in MAR '19

Rs. Cr.)
Period 12 months
INCOME
Sales Turnover 10,482.45
Net Sales 10,482.45
Other Income 190.52
TOTAL INCOME 10,721.99
EXPENDITURE
Raw Materials 6,356.93
Power & Fuel Cost 140.44
Employee Cost 321.64
Other Manufacturing Expenses 0
Miscellaneous Expenses 1,612.41
TOTAL EXPENSES 8,869.34
OPERATING PROFIT 1,662.13
PBDIT 1,852.65
PBDT 1,851.11
Depreciation 135
Profit Before Tax 1,716.11
PBT (Post Extra-ord Items) 1,716.11
Tax 593.91
REPORTED NET PROFIT 1,122.20
Total Value Addition 2,512.41
Equity Dividend 300.15
Corporate Dividend Tax 61.7
PER SHARE DATA (ANNUALISED)
Shares in issue (lakhs) 2,403.18
EARNING PER SHARE (RS) 46.7
Equity Dividend (%) 1,500.00
Book Value (Rs) 168.09

50
PROFIT & LOSS ACCOUNT OF BRITANNIA INDUSTRIES (in MAR '18
Rs. Cr.)
Period 12 moths
INCOME
Sales Turnover 9,380.17
Net Sales 9,304.06
Other Income 155.93
TOTAL INCOME 9,464.17
EXPENDITURE
Raw Materials 5,796.49
Power & Fuel Cost 94.98
Employee Cost 294.87
Other Manufacturing Expenses 0
Miscellaneous Expenses 1,365.99
TOTAL EXPENSES 7,897.76
OPERATING PROFIT 1,410.48
PBDIT 1,566.41
PBDT 1,564.96
Depreciation 119.76
Profit Before Tax 1,445.20
PBT (Post Extra-ord Items) 1,445.20
Tax 497.31
REPORTED NET PROFIT 947.89
Total Value Addition 2,101.27
Equity Dividend 264.13
Corporate Dividend Tax 53.78
PER SHARE DATA (ANNUALISED)
Shares in issue (lakhs) 1,200.59
EARNING PER SHARE (RS) 78.95
Equity Dividend (%) 1,250.00
Book Value (Rs) 269.47

51
PROFIT & LOSS ACCOUNT OF BRITANNIA INDUSTRIES (in MAR '17
Rs. Cr.)
Period 12 months
INCOME
Sales Turnover 8,684.39
Net Sales 8,414.37
Other Income 144.78
TOTAL INCOME 8,608.40
EXPENDITURE
Raw Materials 5,263.24
Power & Fuel Cost 75.04
Employee Cost 241.68
Other Manufacturing Expenses 0
Miscellaneous Expenses 1,357.44
TOTAL EXPENSES 7,259.47
OPERATING PROFIT 1,204.15
PBDIT 1,348.93
PBDT 1,347.59
Depreciation 96.43
Profit Before Tax 1,251.16
PBT (Post Extra-ord Items) 1,251.16
Tax 407.47
REPORTED NET PROFIT 843.69
Total Value Addition 1,996.23
Equity Dividend 239.95
Corporate Dividend Tax 48.85
PER SHARE DATA (ANNUALISED)
Shares in issue (lakhs) 1,200.01
EARNING PER SHARE (RS) 70.31
Equity Dividend (%) 1,100.00
Book Value (Rs) 215.16

52
PROFIT & LOSS ACCOUNT OF BRITANNIA INDUSTRIES MAR '16
(in Rs. Cr.)
12 months
INCOME
Sales Turnover 8,176.82
Net Sales 7,947.90
Other Income 87.88
TOTAL INCOME 8,042.90
EXPENDITURE
Raw Materials 4,643.10
Power & Fuel Cost 57.06
Employee Cost 209.21
Other Manufacturing Expenses 0
Miscellaneous Expenses 1,529.58
TOTAL EXPENSES 6,823.20
OPERATING PROFIT 1,131.82
PBDIT 1,219.70
PBDT 1,218.45
Depreciation 86.89
Profit Before Tax 1,131.56
PBT (Post Extra-ord Items) 1,131.56
Tax 382.47
REPORTED NET PROFIT 749.09
Total Value Addition 2,180.10
Equity Dividend 239.95
Corporate Dividend Tax 48.85
PER SHARE DATA (ANNUALISED)
Shares in issue (lakhs) 1,199.76
EARNING PER SHARE (RS) 62.44
Equity Dividend (%) 1,000.00
Book Value (Rs) 141.71

53