Britannia Financial Reports

8/6/2019 Britannia Financial Reports

http://slidepdf.com/reader/full/britannia-financial-reports 1/18

COMPARATIVE BALANCE SH

Owner's fund

Equity share capital 23.89

Share application money -

Preference share capital -

Reserves & surplus 800.65

Loan fundsSecured loans 2.2

Unsecured loans 22.97

Total 849.7

II. Application of fundsFixed assets

Gross block 511.5

Less : revaluation reserve - -

Less : accumulated depreciation 233.67

Net block 277.84

Capital work-in-progress 6.02

Investments 423.1

Net current assets

Current assets, loans & advances 553.66

Less : current liabilities & provisions 437.55

Total net current assets 116.11

Miscellaneous expenses not written 26.64

Total 849.7

Notes:Book value of unquoted investments 423.07

Market value of quoted investments 2.15

Contingent liabilities 329.05

Number of equity sharesoutstanding (Lacs) 238.9

Year ending

Mar ' 09

I.Sources of funds



COMPARATIVE PROFIT N LOSS A/c or IN

Mar ' 09

A] IncomeOperating income 3,112.38

B] ExpensesMaterial consumed 1,917.22

302.83

Personnel expenses 96.02Selling expenses 434.73

Adminstrative expenses 137.4

Expenses capitalised -

B] Cost of sales 2,888.20

D] Operating profit 224.18

Other recurring income 24.23

Adjusted PBDIT 248.41

(+)Financial expenses 16.01

33.46(+)Other write offs -

Adjusted PBT 198.95

52.12

Adjusted PAT 146.83

(+)Non recurring items 7.15

Other non cash adjustments 26.42

Reported net profit 180.4

Earnings Before Appropriation 240.4

(-)Equity dividend 95.56

(-)Preference dividend -

(-)Dividend tax 16.24

Retained earnings 128.6

RATIO ANALYSIS

Manufacturing expenses

(+)Depreciation

(-)Tax charges



I. BALANCE SHEET RATIOS

1)CURRENT RATIO:-

CURRENT LIABILITIES

it's going down which shows that-

(1. Unsatisfactory liquidity/solvency position of the company which means if cu

able to pay its Current Liabilities.

2. Low level of current assets causing loss of sale if stock is not available or cred

3. Over trading (i.e High turnover as compared to the low level of assets employ

2) QUICK RATIO:-

CURRENT LIABILITIES - BANK O/D

As the standard Ratio is 1:1,companys performance is low i.e

1. The Concern may not be able to pay its Quick liabilities

2. Low cash/bank balances causing loss of sale if raw material cannot be purcha

3. Excess investment without keeping back adequate liquid funds.

3) STOCK TURNOVER RATIO:-

AVERAGE STOCK

There is no standard stock turnover ratio.The companies use to compare it with

So if we compare britannia industries ratio with its past record,we can found th

1. Stock is being turned into sales at a fast speed during the year.

2. Same volume of sales is generated from less stocks

3. Efficient Management of Inventory

II. REVENUE STATEMENT RATIOS:-

1) GROSS PROFIT RATIO:-

CURRENT RATIO= CURRENT ASSETS

In 2008-09 , Current Ratio of Britannia Industries Ltd was 1.56 and in 2009-

QUICK RATIO= CURRENT ASSETS - STOCK

In 2008-09,the Liquid Ratio of Britannia Industries Ltd was 0.67 and it went t

STOCK TURNOVER RATIO= COST OF GOODS SOLD

In 2008-09,the inventory turnover Ratio was 9.98 and it went to 14.54 on 20



SALES

GP ratios of other concern.The Ratio if we compare it shows that-

1)failure in managing purchases,production,sales and inven

2)Loose control over direct costs of labour,fuel,freights etc.3)Lower productivity and lower margin to meet other expen

2) OPERATING RATIO:-

SALES

its standard ratio based on past GP ratios or GP ratios of other concern.The R

1) High efficiency in managing the Operations of the concern like purchases magood control of direct cost of labour,fuel,freight etc.

2) A very good Margin available to meet non-operating Expenses.

3) NET PROFIT RATIO:-

SALES

company has to determine its standard ratio based on past NP ratios or NP rati

1) Inefficiency in managing its activities like trading.production,financing and i

2) unsatisfactory control over operating as well as non operating costs

3) unusual losses likeloss by fire,flood etc.

4)Low increase in the net worth or the proprietors funds.

5)weak capacity of the concern to face bad economic situation.

III. COMPOSITE RATIOS:-

1) DEBT EQUITY RATIO:-

PROPRIETORS FUNDS

the Standard Ratio is 2:1 and compared to last year, it's lower thanthe standard

GROSS PROFIT RATIO= GROSS PROFIT X 100

In 2008-09,the Gross Profit Ratio was 7.85 and it went to 6.12 next year.As t

OPERATING RATIO= COST OF GOODS SOLD + OPERATING EX

In 2008-09,the Operating Ratio was 8.97 and it went to 7.2 next year.It indic

NET PROFIT RATIO= NET PROFIT BEFORE TAX X 100

In 2008-09,the Net profit Ratio was 7.31 and it went to 5.75 next year.It indi

DEBT EQUITY RATIO= BORROWED FUNDS

In 2008-09 , Debt Equity Ratio of Britannia Industries Ltd was nothing as there



1) A very satisfactory safety margin for the long term creditors.

2) More dependence on Equity

3) Smaller burden of fixed interest payment

4) Ease of raising additional loans.

2) PROPRIETORY RATIO:-

TOTAL ASSETS

A proprietory Ratio of 65% is regarded as standard ratio.As in both years its m

1) A very good long term solvency position as own funds are less than borrowed

2) Less dependence on Own funds.

3) DIVIDENT PAYOUT RATIO:-

PROFIT FOR EQUITY SHAREHOL

ratios based on their own past ratio or ratios of other concern.The Ratio if we c

1) A very high divident paid to make the equity shareholders very happy

2) but profits retained may not be sufficient for financing future growth

3) Scope to attract fresh funds from short term investors.

4) good price for equity shares.

The Other Ratios are as follows:-

RATIO'S Mar ' 09

Adjusted EPS (Rs) 61.46

Adjusted cash EPS (Rs) 75.46

Reported EPS (Rs) 75.51

Reported cash EPS (Rs) 89.52Dividend per share 40

Operating profit per share (Rs) 93.84

Book value (excl rev res) per share (Rs) 333.99

Book value (incl rev res) per share (Rs.) 333.99

Net operating income per share (Rs) 1,302.79

Free reserves per share (Rs) 322.15

Adjusted cash margin (%) 5.74

Adjusted return on net worth (%) 18.4

PROPRIETORY RATIO= PROPRIETORS FUND X 100

In 2008-09 , PROPRIETORY Ratio of Britannia Industries Ltd was 87.69 an

DIVIDENT PAYOUT RATIO= EQUITY DIVIDENT X 100

In 2008-09,the Divident Payout ratio Ratio was 26.34 and it went to 61.97



Reported return on net worth (%) 22.6

Return on long term funds (%) 25.29

Earning retention ratio 23.86

Cash earnings retention ratio 37.99

Adjusted cash flow time total debt 0.13

Financial charges coverage ratio 15.52

Fin. charges cov.ratio (post tax) 14.36

Material cost component (% earnings) 62.22

Selling cost Component 13.96

Exports as percent of total sales 2.22

Import comp. in raw mat. consumed 0.04

Long term assets / total Assets 0.55

Bonus component in equity capital (%) 91.82

CASH FLOW STATEMENT Mar ' 09 Mar ' 08

Profit before tax 232.52 232.26

Net cashflow-operating activity 246.78 63.13

Net cash used in investing activity 12.28 -130.31

Netcash used in fin. activity -145.77 53.08

Net inc/dec in cash and equivlnt 113.28 -14.1

Cash and equivalnt begin of year 224.81 238.91

Cash and equivalnt end of year 338.09 224.81



ET of BRITANNIA LtdRs. in crores

23.89 - -

- -

- - -

731.92 68.73 9.39%

1.94 0.26 13.40%

104.16 -81.19 -77.95%

861.91 -12.21 -1.42%

453.18 58.32 12.87%

-

212.19 21.48 10.12%

240.99 36.85 15.29%

9.69 -3.67 -37.87%

380.83 42.27 11.10%

577.48 -23.82 -4.12%

370.31 67.24 18.16%

207.17

23.23

861.91 -12.21 -1.42%

380.81 42.26 11.10%

2.93 -0.78 -26.62%

169.55 159.5 94.07%

238.9 - -

Year ending

Mar ' 08

AbsoluteIncrease or

Decrease

PercentageIncrease or

Decrease( %)



COME STATEMENT

Rs. in crores

Mar ' 08

2,587.86 524.52 20.27

1,563.79 353.43 22.60

244.96 57.87 23.62%

90.53 5.49 6.06%363.2 71.53 19.69%

93.06 44.34 47.65%

-

2,355.54 532.66 22.61

232.32 8.14 3.50%

24.07 0.16 0.66

256.39 -7.98 -3.11

9.73 6.28 64.54

29.08 4.38 15.06- - -

217.57 -18.62 -8.56

41.26 10.86 26.32

176.31 -29.48 -16.72

-3.95 3.2 -0.81

18.64 7.78 41.74

191 -10.6 -5.55

251 -10.6 -4.22

43 52.56 122.23

- - -

7.31 8.93 122.16

200.69 -72.09 -35.92

AbsoluteIncrease orDecrease

PercentageIncrease or

Decrease (%)



ory

es

tio if we compare it shows that-

e at lower prices,optimum level of production,good inventory management and

os of other concern.The Ratio if we compare it shows that-

vestment.

which shows that-

here is no standard Ratio,company has to determine its standard ratio based on past GP ratios or

ENSES X 100

tes the cost of Expenses.As there is no standard Ratio,company has to determine

cates the relationship between net profit and sales.As there is no standard Ratio,

as no borrowed fund and in 2009-10,it was 0.03. As



re than the standard ratio which shows that

funds

ERS

mpare it shows that-

Mar ' 08

73.8

85.98

79.95

92.1218

97.24

306.65

306.65

1,083.23

294.86

7.86

24.06

in 2009-10,it went up to 97.03.

ext year.As there is no standard Ratio,company has to determine



26.07

29.99

71.47

75.51

0.51

26.34

23.61

59.76

14.03

0.44

0.09

0.52

91.82

Britannia Financial Reports

Documents

Transcript of Britannia Financial Reports