EXECUTIVE SUMMARY

Anmol Biscuits is a prominent Biscuit Manufacturing Company of India. Formed in 1994,

Anmol is the fastest growing manufacturer of biscuits in India. Headquartered at Kolkata, the
company operates with an all-India sales network of 600,000 retailers and 3,000 distribution
channels. Anmol seeks to evolve as one of the most trusted and responsible brand leaders in the
packaged food industry through continuous improvement, driven by integrity, teamwork, and
innovation with a dedicated commitment to the society and the environment. Today, taste,
nutrition, hygienic standards, and acceptable price define the Anmol brand promise. Anmol
always looks forward to fulfill the aspirations with a global approach and delivers viable returns
to the society, consumers and its stakeholders. Its present turnover of Rs. 1,200 Crores indicates
its swift upward curve.
This project is based on the FINANCIAL AND COMPARATIVE ANALYSIS OF
ANMOL INDUSTRIES Pvt Ltd. Under this project the financial analysis of Anmol
Industries is being done and a comparative study between Anmol Industries and Britannia
Industries is being done since Britannia is Anmol’s biggest threat apart from Parle in
manufacturing industry.
Analysis means establishing a meaningful relationship between various items of the two
financial statements with each other in such a way that a conclusion is being drawn. By
financial statements by means of two statements
Ø Profit and loss account or Income Statement
Ø Balance Sheet or Position Statement
These are prepared at the end of a given period of time. They are the indicators of
profitability and financial soundness of the business concern. The term financial analysis
is also known as analysis and interpretation of financial statements. It refers to the
establishing meaningful relationship between various items of the two financial statements
i.e. Income statement and Position statement. It determines financial strength and
weakness of the firm. Analysis of financial statements is an attempt to assess the
efficiency and performance of an enterprise. Thus, the analysis and interpretation of
financial statements is very essential to measure the efficiency, profitability, financial
soundness and future prospects of the business units.
Comparative Analysis
Comparative analysis, also described as comparison analysis, is used to measure the financial
relationships between variables over two or more reporting periods. Businesses use comparative
analysis as a way to identify their competitive positions and operating results over a defined
period. Larger organizations may often comprise the resources to perform financial comparative

1
analysis monthly or quarterly, but it is recommended to perform an annual financial comparison
analysis at a minimum.

2
 CHAPTER-1

PLAN OF THE RESEARCH

3
INTRODUCTION

4
 INTRODUCTION TO THE PROJECT:
Analysis means establishing a meaningful relationship between various items of the two
financial statements with each other in such a way that a conclusion is being drawn by
means of two statements:
Ø Profit and loss account or Income Statement
Ø Balance Sheet or Position Statement
These are prepared at the end of a given period of time. They are the indicators of
profitability and financial soundness of the business concern. The term financial analysis
is also known as analysis and interpretation of financial statements. It refers to the
establishing meaningful relationship between various items of the two financial statements
i.e. Income statement and Position statement. It determines financial strength and
weakness of the firm. Analysis of financial statements is an attempt to assess the
efficiency and performance of an enterprise. Thus, the analysis and interpretation of
financial statements is very essential to measure the efficiency, profitability, financial
soundness and future prospects of the business units. Financial analysis serves the
following purposes.
Measuring the Profitability
The main objective of a business is to earn a satisfactory return on the funds invested in it.
Financial analysis helps in ascertaining whether adequate profits are being earned on the
capital invested in the business or not. It also helps in knowing the capacity to pay the
interest.
Indicating the trend of achievements
Financial statements of the previous years can be compared and the trend regarding
various expenses, purchases, sales, gross profits and net profit etc can be ascertained.
Value of assets and liabilities can be compared and the future prospects of the business
can be envisaged.
Assessing the growth potential of the business
The trend and other analysis of the business provides information indicating the growth
potential of the business.
Assess overall financial strength
The purpose of financial analysis is to assess the financial strength of the business.
Analysis also helps in taking decisions, whether funds required for the purchase of the
new machines and equipment’s are provided from internal sources of the business or not if
yes, how much? And also to assess how much funds have been received from external
sources.

5
The other part of the project goes with the comparative analysis of Anmol Industries and
Britannia Industries.
Comparative position in relation to other firms
The purpose of financial statements analysis is to help the management to make a
comparative study of the profitability of various firms, engaged in similar businesses.
Such comparison also helps the management to study the position of their firm in respect
of sales expenses, profitability and utilizing capital, etc.

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 OBJECTIVE OF THE STUDY:

1. To calculate the important financial ratio of the organization as a part of the ratio
analysis thereby to understand the changes the needs and trends in the firm’s financial
position.
2. To assess the performance of ANMOL INDUSTRIES LTD. on the basis of
earnings and also to evaluate the solvency position of the company.
3. Comparative analysis of Anmol Industries and Britannia Industries.
4. To identify the financial strengths and weaknesses of the organization.

7
 LITERATURE REVIEW

INDEPTH ANALYSIS OF FINANCIAL ANALYSIS:

DEFINITIONS:
The term “financial analysis” is also known as “analysis and interpretation of financial
statements”. It refers to the process of determining financial strengths and weaknesses of
the firm by establishing strategic relationships between the items of the balance sheet ,
profit and loss account and other operative data.

NATURE OF FINANCIAL STATEMENTS:

The term “financial statements” refers to the balance sheet reflection the financial position
of the assets, liabilities a capital of a particular company during a certain period and profit
and loss account showing the operational results of the company during a certain period.
Financial statements are plain statements of informed opinion uncompromising in their
truthfulness. It is meant that with in the limits of accepted accounting principles and the
very human abilities of the persons preparing them they have to rely on judgements and
estimated divorced of prejudice.

USES AND IMPORTANCE OF FINANCIAL STATEMENTS:

The financial statements are mirrors, which reflect the financial position and operating
strength’s or weaknesses of the concern. These statements are useful to management,
investors, creditors, bankers, workers, government and public at large. George O May
points of the following measure used of financial statements:
Ø As a basis for taxation.
Ø As a basis for price or rate regulation
Ø As a guide to the value of investment already made
Ø As a basis for granting credit.

PARTIES INTERESTED IN FINANCIAL STATEMENTS:

Now a days the ownership of capital of many public companies has become truly board
based due to dispersal of shareholding, hence, the public in general evinces interest in the
financial statements. Apart from the shareholders there are other persons and bodies who
are also interested in financial results disclosed by the annual reports of the companies. As
already mentioned, such persons and bodies include:
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1. Potential investors
2. Creditors, potential suppliers or other doing business with the company.
3. Debenture holders
4. Credit institutions like bankers.
5. Employee customers who wish to make along standing contact with the company.
6. Economic and investment analysis
7. Members.

ANALYSIS AND INTERPRETATION OF FINANCIAL STATEMENTS:

Analysis and interpretation of financial statements are and attempt to determine the
significance and meaning of the financial statement data as so that a forecast can be made
of the prospects for future earnings ability to pay interest, debt and maturities (current and
long term) and profitability of a sound dividend policy.
Financial analysis main function is pinpointing of the strength’s and weaknesses of a
business concerns by regrouping and analysis of figure contained in financial statements
by making comparison’s of various component and by examine their content. The
financial manager uses this as the basis to plan future financial requirements by means of
forecasting and budgeting procedures.

The analysis of and interpretation of financial statements represents the lost of the four
measure steps of accounting viz.
§ Analysis of each transaction to determine the accounts to debited and credited and
the measurements and the valuation of each transactions to determine the amounts
involved.
§ Recording of the information in the journals. Summarization in largest and
preparation of work sheet.
§ Preparation of financial statements.
§ Analysis and interpretation of financial statements results in the presentation of
information that assets business managers, creditors and investors. This requires a clear
understanding of monitoring item of the items.
The analysis must group that represents sound and unsound relationships reflected by the
financial statements. Those, the data is more maintain full and it is placed in better
perspective when it is provision and by means of measurement, it’s relationship with
others is established in terms of if relative significance and it is ranked in terms of its

9
relative significance. One can achieve this by comparisons made between related items in
the statements series of years.
The analysis of financial statement is a process of evaluating the relationship between
component parts of financial statement to obtain a better understanding of firm financial
position.
A complete set of financial statement comprises:
1) A statement of financial position as at the end of the period:
2) A statement of comprehensive income for the period;
3) A statement of changes in equity for the period:
4) A statement of cash flow for the period.

5) Notes of Account comprising a summary of significant accounting policies and other

explanatory information.

There are four basic financial statements:

1. Balance sheet: It is also referred to as statement of financial position or
condition, reports on a company's assets, liabilities, and ownership equity as of a given
point in time. The Balance Sheet shows the health of a business from day one to the date
on the balance sheet.

2. Income statement: It is also referred to as Profit and Loss statement (or

"P&L"), reports on a company's income, expenses, and profits over a period of time.
Profit & Loss account provide information on the operation of the enterprise. These
include sale and the various expenses incurred during the processing state.
The income statement shows a presentation of the sales, the main expenses and the
resulting net income over the period. Net income is based on accounting principles which
gives guidance/rules on when to recognize revenues and expenses, whereas cash from
operating activities, obviously is cash based.

3. Statement of Retained Earnings: It explains the changes in a company's

retained earnings over the reporting period. The statement of retained earnings shows the
breakdown of retained earnings. Net income for the year is added to the beginning of year
balance, and dividends are subtracted. This results in the end of year balance for retained
earnings.

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4. Cash Flow Statement: It reports on a company's cash flow activities,
particularly its operating, investing and financing activities. The statement of cash flows
the ins and outs of cash during the reporting period. The statement of cash flows takes
aspects of the income statement and balance sheet and kind of crams them together to
show cash sources and uses for the period.

11
 CHAP -2
COMPANY PROFILE
(with SWOT Analysis)

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 COMPANY PROFILE
Anmol Industries Limited is a leading player in the FMCG of India, spread across the Northern,
Eastern and Southern parts of the country. Anmol Industries Limited came into being as a result of the
merger of two strong business units, Anmol Bakers Ltd., which operated in North India and Anmol
Biscuits Ltd., which marketed the brand in Eastern India, cementing its position as one of the leading
packaged food brands in India. Anmol today is an established brand in the biscuit and confectionary
market with a turnover of more than Rs. 1200 crore, making it among India’s top four biscuit brands.
With a network of more than 2500 distributors Anmol’s products are available in more than 15 lakh
outlets across north and east India.
At Anmol, our purpose has always been to give consumers the gift of quality. Catering to diverse taste
buds, we offers a range that has an exhaustive basket of biscuits covering a variety of segments –
sweet, cracker, health, and cream. As for our fine cakes, we provide variety and quality rolled into one.
All our delights are made keeping in mind they reach everyone, regardless of their diversity.
Our principle of giving you a better taste without compromising on quality separates us from the rest.
What ensures the high standards are our modernized state-of-the-art factories. At Anmol, the
multilevel quality check with certifications like ISO, HACCP and GMP ensures that the perfect
balance of taste, hygiene and nutrition are maintained across all variants. Guided by strong principles
of Quality, Ethics and Brand Promise, Anmol has evolved as one of the most trusted and responsible
brands of India.
Already among the top biscuit brands in India, our humble goal is to grow further and be the best
in the segment we are. We also wish to be the provider of our unique taste to each & every
consumers. We aim to fulfill aspirations with a global approach and to deliver the best returns to
the society, consumers, and our stakeholders.

VISION
We seek to evolve as the top Biscuit Brand of India.The mega set-up will enable us to reach further
into the hearts of our consumers. As a brand which is dedicated to providing the best to the consumer,
our primary aim is to keep doing this and be the best at it.

We at Anmol believe that an organisation’s growth is not determined just by its statistics. It is also
reflected in the initiatives that it undertakes & contribute to the society. Hence our CSR
programme is not just a corporate strategy but an integral part of Anmol’s philosophy. As a socially
responsible organization, we extend our philanthropic hand to the world around us and add value to
their lives.

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With enduring relationships, Anmol has collaborated with various communities and government
institutions to carry on with a number of humanitarian activities. Some of these include voluntary
health check-up camps, promoting education by partnering in the establishment of school building,
installation
of deep tube-wells, supplying of biscuits to aid in nutrition, and more.
Beyond the human lives within our vicinity, we have also taken steps to evolve as an environmentally
concerned company. Along with adhering to all the environmental norms, we also do our part in
decreasing the impact on the nature by making our factories as eco-friendly as possible.

QUALITY:

We are strongly committed to Quality Assurance, and hence several stringent measures have been
taken in the entire manufacturing and packaging process at our facilities. Extensive introduction of
technology is undertaken in all our plants to automate its production and commercial process.

Apart from being certified as an ISO 22000:2005 company, all our facilities have adopted most of the
quality tools like Good Manufacturing Practices (GMP) and Good Health Practices GHP) and HACCP.

Ammol’s Products:
Anmol gives a tough competition to its competitor Britannia and Parle. With wide variety of
product range Anmol is growing its plants for production and wide reach throughout the country.
Following are the products that are provided by the company to its customers establishing a new
theory of taste in the mind of customers under the following categories:
Sweet:
• Butter bake
• Bakers bisk
• E-time
• Milk made
• Hit and run
• Coconutty etc.

Health:
• Marie plus

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 • Nautica Marie Plus
• Zero Sugar
Cream:
• Yummy orange
• Yummy Chocolate
• Yummy Lemon etc.
Crackers:
• Top
• Dream
2 in 1 etc.

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 SWOT ANALYSIS
Appraising a company’s resources, strengths, weakness & its external opportunities & threats,
commonly known as SWOT analysis. It provides a good overview of whether its overall
situation is fundamentally healthy or unhealthy just as important a first rate SWOT analysis
provides the basis for crafting a strategies that capitalizes in the company’s resources aims
squarely at capturing the company’s best opportunities & defends against the threats.

STRENGTH: WEAKNESS:
• Finances are taken-over by • Excess man power
qualified employees. • Increases the cost of food
• Employees are knowledgeable product.
• Co-ordination amongst the • Industry and technology
employees. requires high investment.
• Inadequate compensation
package to employees.
• Unable to utilize all the
resources efficiently.

OPPORTUNITIES: THREATS:
• Government taxation
• Generate employment opportunity
policy-against manufacturing
sector.
• Competition to foreign companies
• Sometimes provide poor

• Improve living standard quality of product for more profit.

• Providing food item to nation • Lack of technology
at competitive prices. • MNC’S taking away
good employees with attractive
packages.

Anmol Industries Limited is a manufacturing company with a capital of 3,61,07,000 and

reserves and surplus of 82,82,29,763 and covering profits of 27,62,87,457 in the financial year
2015-16.

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MAJOR INDUSTRY CONTRIBUTION
Anmol’s biggest competitor is Parle and Britannia and also have some other worldwide company as
Smithkline -8%, Nutrie-4%, Kwality-4% Other’s-4%, but Parle has 40% of market share and the
Britannia has 25% market share. Parle and Britannia are biggest threats for Anmol.

Anmol is available in all over India. Anmol’s all the products are found in every place. Like
rural market, urban market and cities. The Anmol biscuit is most admiring product in all towns
also in village. The company’s distribution channel divided in three levels. Manufacturer to
distributor, distributor to whole seller and whole seller to retailer then the customer. The biscuit
generally available in every daily needs shop provision stores, grocery shop.
QUALITY COMMITMENT
Hygiene is a primary concern in Anmol. To maintain a germ free, harmless, quality food product,
Anmol initiates lots of innovations and experiments. One of the leading biscuit manufacturers of
India, Anmol biscuits has two state-of-the-art manufacturing units- one at Dankuni in West Bengal,
and the other at Noida, near Delhi. The 32 manufacturing units have been equipped with the latest
modern machineries available in India, which facilitate in manufacturing uniform quality of biscuits.
The Good Manufacturing Practices (GMP) and the Hazard Analysis of Critical Control Points
(HACCP) are adapted at all the plants, along with the use of sophisticated packing
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machines and materials, ensure that each and every biscuit manufactured never fails to delight
the customers with its taste
and freshness. High quality products are delivered to the customers after undergoing stringent
quality control tests. The quality control tests are done at every stage of biscuit-making, i.e.,
inspection of raw materials, processing and post-production goods by qualified personnel in
well-equipped laboratories. The manufacturing units and the products of Anmol are BSI
certified and the Company is ISO22000: 2005 certified. Anmol is also a member of Agriculture
and Processed Food Exports Development Authority (APEDA) under the Ministry of
Commerce, Government of India. The company is also a member of Federation of Indian
Export Organization. Recently the company has also received the HALAL Certificate.
One of the strongest point of Anmol is its distribution network: The Company is having a
network of super stockiest, distributor and sales person. Anmol has become one of the largest
brands across the country having 110 Super stockiest, 2600 distributors & 250 sales people &
present in about more than 4 lacks retail shop.
Many products can be compared with Anmol Biscuit as they are similar. For e.g., 2 in 1 from
Anmol its counterpart 3 in 1 from Mukund. Marie is common in almost every company and is
produced under different names like Marie, Marie Time from Anmol; Marie gold form
Britannia; Marie Light from Sunfeast. So in order to make the market of one product we have to
fight with other similar product of different companies.

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RESEARCH METHODOLOGY

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METHODS OF DATA COLLECTION
The methods of data collection were through documents and records of the company i.e. through
secondary data.
• Balance Sheets
• Profit and loss account
•
Reasons for choosing this method:
• Consists of examining existing data in the form of databases, attendance logs, financial records,
newsletters, etc.
• This can be an inexpensive way to gather information but may be an incomplete data source.

Tools and techniques of analysis

The technique of research methodology that has been adapted in this project is through Ratio Analysis.
Ratio, as the name suggests, is nothing more than one number divided by the other. However, they become
useful when they are put in some sort of context. This means that when an analysts looks at the number
resulting out of a ratio calculation, must have a reasonable basis to compare it with. Only when the analyst
looks at the number and compares it what the ideal state of affairs should be like, do the numbers become
powerful tool of management and financial analysis.

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DATA ANALYSIS

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Data Analysis is the process of systematically applying statistical and/or logical techniques to
describe and illustrate, condense and recap, and evaluate data. According to Shamoo and Resnik
(2003) various analytic procedures “provide a way of drawing inductive inferences from data and
distinguishing the signal (the phenomenon of interest) from the noise (statistical fluctuations) present
in the data”
While data analysis in qualitative research can include statistical procedures, many times analysis
becomes an ongoing iterative process where data is continuously collected and analyzed almost
simultaneously. Indeed, researchers generally analyze for patterns in observations through the entire
data collection phase
First step, we do a selection of financial report that means a chose of annual financial report. The
annual financial report present financial data of a company's position, operating performance, and
funds flow for an accounting period .We use the annual reporting of both manufacturing companies
in 2016-2017.

Second step of model, we identify the balance sheet, income statement, cash flow statement from the
annual financial report. We used some data from balance sheets for 16 different kind of ratio such as
liquidity ratios, asset management ratios, we was used some sources from income statement. When
we analysis the ratio of profitability and debt management ratio we must be use income statement for
those companies.
The third step of model, we identify the suitable ratio for performance evaluation and we analysis the
ratio such as liquidity ratio, asset management ratio, profitability ratio. All types of ratio are most
important for how well a company to generate its assets, liquidity, revenue, expense etc.
The Forth step of model, we used the Mathematical calculation for both companies. Here we identify
some figure from the income statement and balance sheet in 2016-17 in both manufacturing
companies.
The six step of model, we compares between two pharmaceutical companies about the liquidity
position, asset management condition, and profitability under the ratio analysis.
We also command which company is better and also discuss why not those companies is not good
position compare then other company.

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 Modal for evaluation of both Manufacturing companies

Model of performance
evaluation
manufacturing
company

Selection of
financial report

Identification of
balance sheet, Liquidity ratios
income statement

Profitability ratio
Ratio analysis

Comparison Amongst
both the companies Asset management
ratios

Declaration of best
one among both
companies

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 RATIO ANALYSIS

If performance of an industry as well as of the company seems good, then we need to check if at
the current price, the share is a good buy. For this look at the financial performance of the
company and certain key financial parameters like Earnings Per Share (EPS), P/E ratio, current
size of equity etc. for arriving at the estimated future price. This is termed as Financial Analysis.
For that you need to understand financial statements of a company i.e. balance Sheet and Profit
and Loss Account contained in the Annual Report of a company.
In order to understand the stability of the company, to know the strength of financial position of
the company one needs to go through the ratio analysis. Mere statistics/data presented in the
different financial statements do not reveal the true picture of a financial position of a firm.
Properly analyzed and interpreted financial statements can provide valuable insights into a
firm’s performance. To extract the information from the financial statements, a number of tools
are used to analyze such statements.
Calculation of Ratio’s of Anmol Industries:
Working Capital
The working capital ratio is the same as the current ratio. It is the relative proportion of an
entity's current assets to its current liabilities, and is intended to show the ability of a business
to pay for its current liabilities with its current assets.
1. In order to know the firm’s ability to meets its financial obligations in the short term, which is
less than 1-year liquidity ratio is calculated. Types of liquidity ratios are as follows:
A. CURRENT RATO:
Current ratio basically measures the current ability of the firm to meet its current liabilities from
the current assets.
B. QUICK ASSETS RATIO:
This ratio states the firm’s ability to covert the current assets of the firm quickly into cash to
meet its current liabilities. Quick assets are basically all the current assets excluding inventories
and prepaid expenses.
2. Profitability ratios basically measures the profitability and operating/management efficiency
and is judged mainly by the following ratios:

A. GROSS PROFIT RATIO:

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It is a profitability ratio that shows the relationship between gross profit and total net sales
revenue. It is a popular tool to evaluate the operational performance of the business. The ratio is
computed by dividing the gross profit figure by net sales.
B. NET PROFIT RATIO:
It is a popular profitability ratio that shows relationship between net profit after tax and net
sales. It is computed by dividing the net profit (after tax) by net sales.

25
 Ratio analysis for Anmol Industries Pvt. Ltd. (2016)

Ratios Particulars Value

Working Current assets= 8.81cr
capital= 48.84 cr.
Current assets- Current liabilities=
current liabilities 40.03 cr.
Working capital as a 2.39%
percentage of
revenue= 8.81*100
Working capital*100 368.30
Revenue
Current ratio= Current assets= 1.21
Current Assets 48.84 cr.
Current Liabilities Current liabilities=
40.03 cr.
Acid test or Quick Quick assets= 48.71 1.21
ratio = cr.
Liquid Assets Current liabilities=
Current 40.03 cr
Liabilities
Gross Profit ratio= Gross profit= 112.98 30.6%
Gross Profit * 100 cr.
Sales
Net sales= 368.30 cr.

Net Profit Ratio= Net profit-= 10.31%

Net Profit * 100 37,97,56,716
Sales Net sales=
3,68,30,38,534
Cost of goods sold Cogs= 22.45 lkh 0.06%
ratio= Net sales=
Cost of Goods 3,68,30,38,534
Sold*100

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 Sales
Working capital Net sales= 368.30cr 4:1
turnover= Working capital=
Sales a/c 8.81 cr
working Capital

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 Calculation 0f Ratios of Britannia Industries (2016)

Ratios Particulars Value

Working capital= Current assets= 74.69 cr.
Current assets- 1417.39 cr.
current liabilities current liabilities=
1342.70 cr.

Working capital as a
percentage of
revenue=
working capital*100 74.69*100

revenue 8046.11 0.93%

Current ratio= Current assets= 1.05
Current Assets 1417.39 cr.
Current Liabilities Current liabilities=
1342.70 cr.

Acid test or Quick Quick assets= 0.76

ratio = 1033.38 cr.
Quick Assets Current liabilities=
Current 1342.70 cr.
Liabilities

Gross Profit ratio= Gross profit= 1141. 14.19 %

Gross Profit * 100 89
Sales Net sales= 8046.11

Net Profit Ratio= Net profit= 749.09 c 9.30 %

Net Profit * 100 r.
Sales Net sales=8046.11
cr.

Cost of goods sold Cogs= 2963.43 cr. 36.83 %

ratio=
Cost of Goods

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Sold*100 Net sales= 8046.11
Sales cr.

Working capital Net sales= 8046.11 10.6:1

turnover= cr.

Sales a/c
Working Capital

Working capital-
74.69 cr.

29
 ANALYSIS

CURRENT RATIO:
By analyzing current ratio, we can figure out that the current ratio of Anmol industries is 1.21
and that of Britannia Industries is 1.05. 2 is considered as the ideal current ratio and since both
the companies have their current ratio above 1 so the company’s financial strength is good and
the assets of both the companies are efficiently utilized.
QUICK RATIO:
The ability of the firm to meets its current liabilities by converting its current assets quickly into
cash is 1.21 for Anmol Industries, which is a good indication since if a situation arises for the
company to meet its current liability in a short period the firm has an ability to do that.
The current ratio of Britannia industries is 0.76 which means that the firm needs to look upon its
current assets for short term solvency.
Here we can state that the Anmol industries is in better liquidity position as compared to
Britannia Industries.
GROSS PROFIT RATIO:
The gross profit of Anmol Industries is 30 %.
The gross profit ratio of Britannia Industries is 14.19%
Gross profit ratio indicates what percentage of profit the company has acquired before the
deduction of taxes and expenses from the total revenue. The gross profit of a company should be
higher for its future growth.
Here since the gross profit of Anmol Industries is higher so the company tends to have a higher
growth in the future, as compared to Britannia Industries.
NET PROFIT RATIO:
The net profit of Anmol industries is 10.31%
The net profit of Britannia Industries is 9.30%
Anmol industries have a net profit of 10% as compared to Britannia Industries ltd, which is 9%.
This means that the Anmol Industries has a net income of Rs. 0.10 for each rupee of total
revenue earned by the company as compared to 0.09 that of Britannia Industries ltd. This means
that that the profit of Anmol after deducting the costs and taxes is higher as compared to
Britannia Industries.

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WORKING CAPITAL AS A PERCENTAGE TO REVENUE:
Working capital as a percentage of sales tells a business how much of every sales rupee must go
toward meeting operational expenses and short-term debt obligations.
For Anmol industries, working capital of 2.39 percent of sales means it takes 2.39 percent out of
every sales rupees to fund the working capital cycle.
For Britannia Industries, working capital of 0.93% percent of sales means it takes 0.93% percent
out of every sales rupees to fund the working capital cycle.
COST OF GOODS SOLD RATIO:
The cost of goods sold ratio of Anmol Industries is 0.06%
The cost of goods sold ratio of Britannia Industries is 36.83%
This ratio is used to check the efficiency of the business. If you have to sell, it means, you have
to buy or use stock in your store which you have bought in past. You have to pay the labor cost
for producing this and you will also pay other direct expenses.
Since the cost of goods sold ratio of Britannia Industries is higher than Anmol industries by
more than 30% so the efficiency of Britannia industries to sell is way higher than that of Anmol
Industries.

WORKING CAPITAL TURNOVER RATIO:

The working capital turnover ratio of Anmol industries is 4:1 The
working capital turnover ratio of Britannia industries is 10:1
The working capital turnover ratio is also referred to as net sales to working capital. It indicates
a company's effectiveness in using its working capital.
Since the working capital ratio of Britannia industries is higher so the effectiveness of using
the working capital of Britannia is better than Anmol industries.

31
 FINDINGS

This report work has identified how companies use financial statement analysis and interpretation in
making effective management decisions. Overall organizational profitability and achievement of
organizational objectives were discussed. Again the difference between the returns of a financial
statement analysis and interpretation based on management decisions were also discussed.

• The assets of Anmol industries are efficiently and effectively utilized

• The ability of the firm to convert its current assets in cash quickly to meets its liability is
good since the quick assets ratio is 1.21 where the ideal ratio is considered as 2.
• The cogs ratio of Anmol industries is very low which means that the efficiency of
Anmol is lower.
• The companies effectives in using the working capital as compared to Britannia
Industries is Lower.
• The net profit ratio of the company is higher as compared to Britannia industries which
means that the Anmol Industries has a net income of Rs 0.10 for each rupee of total
revenue earned by the company as compared to 0.09 that of Britannia Industries.

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 CONCLUSION
The sole motive for any organization is growth by providing the best out of their product, which
Anmol Industries comes out with their soul and heart. Not only they focus on profits but on
employee and customer satisfaction. All the employees are well trained and they too are
focusing in maintaining a good environment inside and outside the organization.
There are certain procedure that every company follows to maintain an easy out flow of work in
the organization and Standard Operating Procedure of the company is a soul for making that
work go with ease.it is very important to maintain the SOP in order to ensure that, if any
hindrance occurs it can act as a ray to continue the work.
Anmol is offering various food consumables, which are running good in the market and are
giving a tuff competition to other company’s product. Britannia being Anmol’s biggest
competitor is facing a tuff competition.
Every year the sales of Anmol is increasing with a huge difference in there sales figures which is
increasing the overall revenue resulting in an increase in their Gross Profit ratio and Net Profit
ratio. Currently Anmol’s Net Profit ratio is at par as compared to its competitors and the
company is focusing on increasing its turnover from 1200+ cr. to 2000+ cr.

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 BIBLIOGRAPHY

• Standard Operating Procedure of the company

• Annual Reports
• http://www.anmolindustries.com
• www.zaubacorp.com/company/ANMOL-INDUSTRIES-
LIMITED/U15412AS2002PLC006936.
• https://www.itgct.com/benefits-of-sap-software-what-can-it-do-for-your-
business/
• SAP- INFO
• https://ori.hhs.gov/education/products/n_illinois_u/datamanagement/datopi
c.html

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