THE DEPARTMENT OF MANAGEMENT

STUDIES, BHIMTAL.
(Affiliated to KUMAUN UNIVERSITY,
NAINITAL.)

Submitted to: Submitted by:

Mr. Mudit Agarwal Ms. Priti Rawat.
Finance Manager, D.M.S., Bhimtal
BIL, Rudrupur. (Nainital)
 CONTENTS
 DECLARATION
 ACKNOWLEDGEMENT
 PREFACE
Introduction about the topic
 Working Capital management
 Concept of Operating Cycle
 Factors affecting Working Capital Requirements
 Components of Working Capital
 Cash Management
 Receivables Management
 Inventory Management
 Sources of financing Working Capital.
Objective of study
Period of Study
Company Overview
Management Team
Board of Directors
Company Profile
Milestones
New in Britannia-Group Danone’s Article
What makes a Britannian..?
Bonus & Dividend Patterns.
Activities of the Company.
History of Biscuits.
Products representing Britannia.
The origin of “Eat Healthy, Think Better”
About the Products.
Britannia Overseas.
Company’s performance for the year 2008-09.
Indian Biscuit Market.
THE PANTNAGAR UNIT.
 Introduction.
 Company Events.
 Departments of the Company.
 Plant Visit.
 Objectives of the Unit.
 Storage & Usage of Raw Materials.
 Thing’s you don’t know about Britannia.
 The Finance Department.
 Competitors of the FMCG Company.
 SWOT Analysis.
 ANNEXURES:
o Profit & Loss a/c.
o Schedule of Changes in Working Capital.
o Funds Flow Statement.

 Conclusion.
 DECLARATION

I hereby declare that the project report entitled “WORKING CAPITAL

MANAGEMENT IN BIL RUDRAPUR” is written and submitted by me under
the guidance of Mr.Mudit Agarwal and Mr. Sumit Mathur is it my original work,
which I had collected by myself is true and even not copied also. This is my
original or true work. This report is totally prepared up to my own efforts & has
not been copied from any other source. The data is collected through the
particular company given data’s while pursing training within the organization.

Priti Rawat

(MBA 3rd Sem.)

 ACKNOWLEDGEMENT

Any activity big or small is a result of collective efforts of several

individuals. From the very beginning of human civilization to this complex
network world, we are interdependent on each other for accomplishment of our
goals. So I feel myself to fortunate enough to have it done under “BRITANNIA”

This project report is also the result of collective efforts of several

individual, who has given their valuable contribution in fulfillment of this work.
.
Above all and the most I would like to express my heartfelt gratitude to the Lord
Almighty for blessing me with the ability to be capable of doing so much in life.

I am graceful to the Accounts Manager Mr. Mudit Agarwal for allowing me to

work on this project under his able and supportive guidance. He is the one who is
lovingly crafted and carefully equipped by God for the purpose that no other can
fulfill.

I would like to express a deep sense of gratitude to Mr. Sumit Mathur, the
Accounts Officer for polishing and refining my knowledge on various aspects. I
am happy for the encouragement I got from him during the whole training period
and thank him for the help I got from him in various forms. I hope that the report
lives up to your expectations, & My special thanks goes to Mr. Mayank
Shrivastava, Manager HR for granting me permission to complete my project
in the company

This note would be incomplete without the expression of my profound sense of

gratitude towards Mr. Ankur Agarwal and Mr. Vinod Tiwari, the accounts
officers and the other staff members in the department.
Thanks to all of them for being so kind, supportive and loving..!!

A special mention would go to Mr. Kamal Kishore Pandey, my faculty guide

at DMS, Bhimtal, for the help and support got from him.

I would like to make a special mention of my parents & friends, who have been
the guiding spirit and sources of inspiration in completing this project & without
whose support and inspiration the work, would have never seen the light of day.
Priti Rawat.
PREFACE

Life is a series of opportunities & whatever opportunities you have, if you try to
do your best, you will have the blessing of the Divine. Two ingredients of success
are human effort & grace of God. Whatever work you undertake, small or great,
if you throw yourself heart & soul into it & discharge your duties in a spirit of
dedication, it doesn’t matter whether by the worldly standard you succeed or fail,
for you will have done your duty. No great achievement is ever possible without
toil & sacrifice.
The present report is based on my industrial training in Britannia Industries ltd.
SIDCUL. Pantnagar producing the major power product under the brand name
BRITANNIA. The summary training is to acquaint the study with real life
situation of the organization. It gives an opportunity to utilize and integrate the
theoretical knowledge acquired in the classroom with the practical experiences
acquired from the organization.
Working Capital Management is the significant facet of financial management as

its importance stems with two reasons lies in financial management. The first

stem is investment in current asset represent a substantial portion of total

investments. The second stem is investment in current assets and the levels of

current liabilities have to be geared up quickly as to make changes in sales.

 INTRODUCTION TO THE TOPIC

WORKING CAPITAL MANAGEMENT

Working Capital Management refers to the management of both Current

Assets and Current Liabilities. However according to some references it is only
the management of Current Assets. This is because Current Assets and Current
Liabilities are interrelated, hence if Current Assets are efficiently managed then
the Current Liabilities are automatically managed and also the management of
Current Assets is the most important.
Working Capital can be both fixed and fluctuating. It involves the
relationship between a firm's short-term assets and its short-term liabilities. The
goal of working capital management is to ensure that a firm is able to continue its
operations and that it has sufficient ability to satisfy both maturing short-term
debt and upcoming operational expenses. The management of working capital
involves managing inventories, accounts receivable and payable, and cash.
Working capital management is concerned with the problems that arise in
attempting to manage the current assets, current liabilities and the
interrelationship that exists between them. The interaction between current assets
and current liabilities is therefore, the main theme of the theory of working
capital management.

WORKING CAPITAL:
There are 2 concepts of working capital, viz, Gross Working Capital and Net
Working Capital.
Gross Working Capital is the sum total of all the Current Assets. Current Assets
are the assets which can be converted into cash within an accounting year. These
include cash, short term securities, debtors, bills receivables and stock.
Net Working Capital is the difference between Current Assets and Current
Liabilities. Current Liabilities are those claims of outsiders which are expected to
mature for payment within an accounting year. It includes creditors, bills
payables and outstanding expenses. Net Working Capital can be positive or
negative also.

DECISIONS TO BE TAKEN IN WORKING CAPITAL MANAGEMENT

There are 2 important decisions which are to be taken under Working Capital
Management. These are,
  Level of Current Assets,
 Financing of Current Assets.
Level of Current Assets:
There must be an optimal level of current assets, neither too high nor too low. if
there is a high level of current assets then current liabilities will be paid in time
but there will be excessive liquidity which has its positive and negative aspects
and if there is a low le of current assets, the result will be non repayment of
current liabilities at the specified time period. Hence, Current Assets must be
optimal so as to ensure sufficient profitability.

Financing of Current Assets:

The basic question in this is how you are financing your Current Assets i.e. either
through long term sources or short term sources. There must be a mix of short
term sources and long term sources of finance while financing the current assets.
In this regards there are three approaches viz,
 Moderate or Matching Approach
 Aggressive Approach
 Conservative Approach.

Moderate approach states that the long term sources are cheaper and hence it is
advisable that the fixed part of working capital must be financed through long
term sources of finance only and the fluctuating part of working capital must be
financed through short term sources.
The Aggressive Approach is of the view that the fluctuating working capital and
some part of the fixed working capital should be financed through short term
sources while the remaining part of the fixed working capital should be financed
through long term sources.
The Conservative Approach finances the whole of the fixed working capital
and some part of fluctuating working capital through long term sources of
finance and rest part of fluctuating working capital through short term sources.

The above mentioned concept of Working Capital is the traditional concept of

working capital. However there is another concept of working capital i.e the
Modern Concept, also known as the Operating Cycle Concept.
This is the new concept of working capital which states that the total cash
requirement during the entire operating cycle of any firm is the working capital.
Operating Cycle is the number of days or weeks or simply the time period which
is required or taken by any organization from the investment or outgoing of cash
to the recovery or taking back of cash.
 CASH
INVENTORY

WORK-IN-
DEBTORS
PROGRESS

FINISHED
GOODS

The time period taken during the whole cycle is known as the Operating Cycle
Time. It is the total time spent in each stage.
This period can be classified as Inventory period and Receivables period.
Stores period, Work-in-Progress period and Finished Goods period come under
Inventory period.
Stores Period/Storage Period=
Average Inventory of Raw Materials & Stores
Average Consumption per day

Work-in-Progress Period=
Average Work-in-Progress Inventory
Average Cost of Production

Finished Goods Period=

Average Finished Goods Inventory
Average Cost of Production

Receivables/Debtors Period/Average Collection Period=

Average Debtors/Receivables
 Credit Sales per day

Where Credit Sales per day=Average Creditors

Credit Sales per Day

Gross Operating Cycle=Storage Period + W-I-P Period + Finished Goods Period

+ Debtors Period

Net Operating Cycle=Gross Operating Cycle-Creditors Period

FACTORS AFFECTING WORKING CAPITAL REQUIREMENTS

1) Nature of Business i.e. what kind of business are you in & accordingly the
working capital will vary.
2) Demand fluctuations: If demand is high, working capital requirement is
more & when demand is low less working capital is required.
3) Price Level Changes: e.g. if labor cost increases, working capital
requirement also increases.
4) Seasonality of Operations: e.g. Fans in summers have more production &
thus these companies require much of working capital.
5) Credit Policy of the Company i.e. the extent to which company is granting
credit & for how much time your money is locked.
6) Size of Business: Small companies need less working capital and large
business houses require more of working capital.
7) Profitability: If retained earnings are higher, external capital requirement is
less. Hence it is advisable to have more of retained earnings.
8) Production Policy: Working Capital also depends on the type of workers
employed in the company i.e. whether workers are temporary or
permanent.
9) Input Constraints i.e. constraints in respect of procurement, inventory, lead
time etc also affect the working capital requirement of a particular
company. Where there are less constraints, less working capital is required
& vice-versa.
10) Competition/Market Conditions i.e. competitors’ strategies and
market conditions.
11) Product Mix of the company i.e. the number of inputs and the
number of products the company is manufacturing. If the company is
making many products, more working capital is required.
12) Manufacturing cycle i.e. the technology being used in the
manufacturing of products. According to the demands of the particular
technology used, the working capital requirements vary.
 13) Availability of Finance: If finance is easily available, less working
capital is required & if it is not easily available, more working capital is
required for its procurement as expenses will be incurred in procuring
finance for the organization.
14) Future Growth i.e. what kind of growth the company is planning or
expecting in future.
15) Taxation i.e. VAT or Excise Duty on the products of the company.
Taxation is a major aspect affecting the working capital requirement.
16) Government Policies: The policies of the government also affect the
working capital requirement of a particular company, like there is a ban on
certain commodities from the government side.
17) Management of the company also affects all the above mentioned
factors except the Taxation & the government policies as these are
uncontrollable in the hands of the management of the company.
18) Efficiency of operations i.e. whether the management is aggressive
or conservative in its operations. The efficiency in terms of utilization of
plant and other assets is overlooked & on the basis of this the working
capital requirements of the company are assessed.

COMPONENTS OF WORKING CAPITAL

There are three basic components of working capital. These are

 Cash Management.
 Receivables Management.
 Inventory Management.

CASH MANAGEMENT:
The currency notes finance is cash; Marketable Securities are also included in it
as they are readily saleable in the securities market.
Cash is the most liquid asset and also an idle inventory which produces nothing.
The finance manager is faced with a paradox in managing cash. This paradox is
because on one hand the finance manager wants to recover receivables as early as
possible and on the other hand he doesn’t want to keep this cash with him as it is
an idle asset.

The following are the motives for holding cash by a firm:

 I. Transactions Motive: The transactions motive requires a firm to hold cash
to conduct its business in the ordinary course to fulfil the mismatch between
transactions as cash receipts & cash payments are not perfectly
synchronized. For those periods when cash payments exceed cash receipts,
the firm should maintain some cash balance to be able to make the required
payments. Hence the transactions motive mainly refers to holding of cash to
meet anticipated payments whose timing is not perfectly matched with cash
receipts.
II. Precautionary Motive: This motive requires a firm to hold cash to meet
contingencies in the future i.e. in case of some unexpected emergency. The
precautionary amount of cash depends upon the predictability of cash flows
& also by the firms’ ability to borrow at short notice. Less cash will be
maintained for an emergency if the cash flows can be predicted with
accuracy or if the ability of the firm to borrow at short notice is stronger. The
precautionary balance must be kept in cash & marketable securities. This
amount kept aside for precautionary motive is not expected to earn anything,
therefore a firm should attempt to earn some profit on it and hence such
funds should be invested in high-liquid & low-risk marketable securities.
Precautionary balance should thus be held more in marketable securities &
less in cash.
III. Speculative Motive: It relates to holding of cash for investing in profit-
making opportunities as & when they arise. This kind of an opportunity may
arise when the security price changes & the firm may also speculate on
materials price. Generally business firms do not engage in speculations and
hence the primary motive to hold cash & marketable securities. This is to
create the ability for a firm to take advantage of special opportunities that if
acted upon quickly will favor the firm.

For fulfilling the above mentioned objectives we need cash planning & for this
we create cash budgets. Cash Budget is prepared for short term i.e. 3-6 months
and the most common method for its preparation is the receipts & payments
method. This cash budget is a tool which gives us an idea about various cash
transactions for a particular period. When there is deficit cash, the firm arranges
for funds through borrowing & when there is surplus cash, it plans for
investment.
For knowing how much cash organizations should have there are some models.
These models are meant for cash management in the organization.
The two models for cash management are:
 Boumoul’s model
 Miller & Orr model.

According to the Boumoul’s model, the total transactions cost is to be kept

minimum. The calculation of the Economic Order Quantity (EOQ) helps us in
having an idea that how you can convert your cash into securities or securities
into cash & getting the Lot size. This model is based on EOQ.
According to the Miller & Orr model cash balance changes or it keeps on
changing with time. It doesn’t give the bunches of cash balance to be invested
as in the case of Boumoul’s model. In this we calculate the Return Point.

Cash Monitoring is also a very important aspect of Cash Management. It

considers two fields i.e. Collection of Cash & Dispersement of Cash.

Collection of Cash: It is done through various sources. The collection systems

are designed according to the pattern in which buyers are scattered. Hence the
designing of the collection system is very important. The cost of the collection
system should be minimum. We should be prompt in billing & the collection
system should be efficient.

“We should be prompt in collection whereas delay the payments as much as

possible.”
It means that we should avail the credit period. Delay in payments should be
there in such a way that your creditability is maintained. The flow of cash
should be properly managed. The cash inflows should be accelerated while the
cash outflows should be decelerated as far as possible.

Investment of Surplus funds: The surplus cash balances should be properly

invested to earn profits. The three things to be kept in mind while investing
are...
 Liquidity
 Safety
 Return / Yield
While investing the surplus, this sequence of guiding principles should be kept in
mind. The firm should decide about the division of the surplus cash balance
between alternative short term investment opportunities. It requires the collection
& then pooling of surplus funds at a place.

RECEIVABLES MANAGEMENT:
Receivables is the amount which is owed to the customers on account of credit
sales. A firm grants trade credit to protect its sales from the competitors & to
attract the potential customers to buy its products at favorable terms. Trade credit
creates accounts receivables or trade debtors that the firm is expected to collect in
near future. These debtors are also referred to as Book Debts in India. Debtors
constitute a substantial portion of current assets. In India trade debtors, after
inventories are the major component of current assets.
Granting credit & creating debtors amounts to the blocking of the firm’s funds.
The interval between the date of sales & the date of payment has to be financed
out of working capital.

Trade credit is of two types, viz...

 Open Accounts
 Bills

In an Open Account, an account is opened in the company’s name & payment is

made through it. The creditor on account of open account is known as Debt &
Account Receivables.
In case of Bills, customer is sent a bill & he signs it. This is more legal because
bill is a documentary proof. The credit on account of bills is known as Bills
Receivables.

Total Receivables=Bills Receivables + Debtors/Accounts Receivables.

In managing the receivables also, the finance manager faces a paradox coz’
Receivables are created by Marketing Managers but the responsibility of
recovering them comes to the Finance Manager.
Trade Credit has to be granted under certain terms & conditions & for this we
have the Credit Policy of the company. The Finance Manager plays a significant
role in planning the credit policy of the company. Credit Policy can be altered or
modified.

Management of Receivables is important coz:

1. Receivables is generally the 2nd largest component in the Current Assets of
the Balance Sheet. It means that the size of receivables is very significant
& hence it has to be looked after with great care.
2. It is also important coz’ we want early cash & cash comes from
Receivables. Cash is to be collected from Receivables as early as possible.
3. Cost is also involved in collecting receivables, like the interest cost, Bad
debt Losses etc. Hence efficiency has to be there in collection of
Receivables.
Investment in collecting Receivables can be summed in the following formula:

Investment=Average Collection Period (ACP) * Daily Credit Sales

ASPECTS OF CREDIT POLICY

The three major aspects of the Credit Policy of any Company are:
 Credit Standards
 Credit Terms
 Collection Efforts

The Credit Standards are set by the organization to identify to whom to grant
credit & how much to grant it. There can be various techniques of deciding
whom to grant credit. One amongst them is the Traditional Technique of Granting
in which there are 5 C’s viz.
a. Capacity i.e. Ability to Pay.
b. Character i.e. Willingness.
c. Conditions i.e. Economic Conditions.
d. Collateral i.e. Security which a person is offering.
e. Capital i.e. financial reserves of the Customer.
Other methods are Sequential Credit Analysis, Numerical Credit Scoring,
Discriminant Analysis, Risk Classification Scheme etc.
The stipulations under which the firm sells on credit to customers are
called Credit Terms. These include:
a. The Credit Period &
b. The Cash Discount.

The Credit Period is the length of time for which credit is extended to
customers. The firms’ credit period is generally stated in terms of a net
date & this credit period may be governed by the Industry norms but the
firms may lenthen or tighten their credit period.
Cash Discount is a reduction in payment offered to customers to induce
them to repay credit obligations within a specified time period, which will
be less than the normal credit period. It is usually expressed as a
percentage of sales. Cash Discount Terms indicate the rate of discount &
the period for which it is available.

Hence the Credit Terms would include

a. The rate of Cash Discount e.g. 3%
b. The Cash Discount Period e.g. 15 days
c. The Net Credit Period e.g. 30 days.
In this a case the Credit Terms would be expressed as
 “3/15, net 30”.

In the Collection Effort, a well documentary proof of the collection

efforts must be there. Instructions about how the collection will be done
should be clearly specified. There should be some defined terms. For
this a Collection Policy is needed coz’ all the customers do not pay the
firms bills in time. Some customers are slow-payers while some are
non-payers. Hence, the collection efforts should aim at accelerating
collections from slow-payers & reducing bad-debt losses. The
collection policy should ensure prompt & regular collection. It should
lay down clear cut collection procedures. The slow-paying customers
should be handled very tactfully. The responsibility for collection &
follow-up should be explicitly fixed. It may be entrusted to the accounts
or the sales department or to a separate Credit Department.
Coordination between the Accounts &Sales department is necessary &
it must be ensured formally.

There can be various Monitoring Methods to monitor & control the

receivable to ensure the success of collection efforts. Two traditional
Methods in this are:
 Average Collection Period
 Aging Schedule.

The ACP (Average Collection Period) is calculated with the firms stated
credit period to judge the Collection Efficiency. It measures the quality of
the receivables since it indicates the speed of their collectability.
The formula for its calculation is:
ACP=Debtors * 360
Credit Sales
But there are some limitations of this method. First of all this method
provides an average picture of collection experience & is based on
aggregate data. Secondly, it is susceptible to sales variations & the period
over which sales & receivables have been aggregated.

The Aging Schedule is the improved version of ACP. It breaks down

receivables according to the length of time for which they have been
outstanding. It helps us to spot out slow-paying debtors. It also suffers
from the problem of aggregation & doesn’t relate receivables to sales of
the same.
INVENTORY MANAGEMENT:

Inventories are the stock of the product a company is manufacturing for

sale & the components that make up the product. Inventories constitute the
most significant part of current assets approximately 60%. Because of the
large size of inventories maintained by the firms, a considerable amount of
funds is required to be committed to them. Hence, management of
inventories is imperative so as to avoid unnecessary investment.
Inventories exist in three forms in a manufacturing company viz,
a. Raw Materials Inventory, purchased & stored for future
productions.
b. Work-in-Progress Inventory, the semi-manufactured products.
c. Finished Goods Inventory, the goods ready for sale.

The stocks of raw materials & WIP are required to facilitate production &
stock of finished goods is required for smooth marketing operations. The
levels of the three kinds of inventories for a firm depend on the nature of
its business.
Firms also maintain a fourth kind of inventory called Supplies or Stores &
Spares. These include office & plant cleaning materials like soaps, brooms,
fuel etc.

MOTIVES FOR KEEPING INVENTORIES:

 To facilitate smooth production & sales operations i.e. The
Transactions Motive.
 To guard against the risk of unpredictable changes in usage rate &
delivery time i.e. The Precautionary Motive.
 To take advantage of price fluctuations i.e. The Speculative Motive.

OBJECTIVES FOR KEEPING INVENTORIES:

 To facilitate production so that there is no interruption in
production.
 To provide goods as &when required by the customers.
 To ensure smooth running between the departments.
 For MIS (Management Information System) reporting purpose.

There are various costs involved in management of inventories.

These costs are Financing Costs, Space Cost, Handling Costs, Costs
of Spoilage or Theft, Human Resource Cost, Costs of Equipments,
Airconditioning, Lighting, Insurance etc. The management of these
costs is also very important for efficiency & effectiveness in the day
to day working.

The objective of Inventory Management should be to determine &

maintain the optimum level of inventory investment. The optimum
level of inventory will lie between the two danger points of
excessive & inadequate inventories. The firm should always avoid a
situation of overinvestment or underinvestment in inventories.
The major dangers of OVERINVESTMENT are:
1. Unnecessary tie-up of the firms’ funds & loss of profit.
2. Excessive carrying costs.
3. Risk of liquidity by which it mayn’t be possible to sell
inventories in time & at full value.
4. Physical deterioration of inventories while in storage, due to
passage of time, or due to mishandling & improper storage
facilities.

The consequences of UNDERINVESTMENT in inventories are:

1. Production Holdups coz’ of insufficient material.
2. Failure in meeting the Delivery Schedules as fixed.
3. Loss of Goodwill of the Company.

Hence the aim of Inventory Management should be to avoid

excessive & inadequate levels of inventories & to maintain
sufficient inventory for smooth production & Sales
operations. It should maintain optimum level of inventories.
To determine this optimum level of inventories we have the
Economic Order Quantity (EOQ) Model.
The EOQ model answers two questions:
- How much should be ordered &
- When should it be ordered?

How much to order relates to the determination of the EOQ

while When to Order relates to the problem of the
determination of the Reorder Point.
The major Inventory Management problem to be resolved is how much
inventories should be added when the same have been replenished. The firm
has to decide lots in which raw materials inventory has to be purchased on
replenishment, if the firm is buying raw materials or if the firm is planning a
production run, the question before it is that how much to produce. These
problems are called as the Order Quantity Problems & the task of the firm is
to determine the optimum or economic order (Economic Lot Size). The
determination of the Optimum Inventory Level involves the following two
types of costs:
1) Ordering Cost i.e. the cost of acquiring raw materials.
These increase in proportion to the number of orders.
2) Carrying Cost i.e. the cost for maintaining a given level
of inventory. These costs decline with increase in
inventory size.
The EOQ is that inventory level that economic level that
minimizes the total of ordering & carrying costs.
The Reorder Point is that inventory level at which an order
should be placed, to replenish the inventory.
SOURCES OF FINANCING WORKING CAPITAL

Financing of working capital is to be arranged considering the practical aspect of

working capital that is, whether it is fixed working capital or variable working

capital. Sources of financing working capital are grouped into two categories:

A. Long-term sources

B. Short-term sources

A. Long-term sources

Normally, this source is resorted to finance that portion of working capital

which is of permanent character, that is, it is believed that this type of

working capital will be needed constantly for a longer period. These

sources are:

1. Issue of shares- This is an important source for raising finance for

permanent working capital. These shares may be both equity shares

and preference shares. Since issue of equity shares does not create

any fixed burden on the earnings of the business, therefore normally

equity shares should be issued for raising funds for financing

working capital.
 2. Retained Earnings- That part of earned profits in a business which

is not distributed as dividend is called as retained earnings and it is

considered as regular and costless source of financing working

capital.

3. Reserves- Various types of reserves also do not involve any fixed

charge on business earnings and therefore the use of such reserves in

financing working capital is also considered as proper and

profitable.

4. Sale of Fixed Assets- Some fixed assets owned by the business

concern may become obsolete and some of them are available as

scrap. At the same time, some are being purchased due to faulty

planning and forecasting and thus become as surplus. All these

assets can be disposed off and thus working capital can be arranged.

5. Debentures- Business concern may also raise funds for financing

the working capital by issue of debentures in the same way as the

issue of shares. Issue of debentures create a fixed burden (in the

form of interest) on the business earnings

6. Long-term Loans- In addition to the issue of debentures, a business

concern may also obtain funds for working capital as loans from

financial corporations, trusts and investment companies.

B. Short-term Sources
Variable working capital is normally financed through short-term sources

including spontaneous ones. Following may be included in this category:

1. Trade Credit- Suppliers of different kinds of raw materials

provide credit to their customers spontaneously as per trade

conventions. A substantial part of purchases of goods and services

in business are on credit terms rather than against cash payment.

While the supplier may perceive credit as a lever for increasing

the sales volume, the buyer may look upon it as an alternative to

loaning for the purchase.

2. Bank Overdraft- Customers having Current Account in the Bank

may avail the benefit of overdraft upto a certain limit from their

bankers. Customers can overdraw to that extent any time and may

repay the amount any time. Interest is charged by the banker only

on that amount which has been overdrawn by the customer.

3. Cash Credit- Commercial banks provide cash credit facilities to

its customers for meeting their short-term financing requirements.

Under this system bank offers the facilities to clients to withdraw

the money within the limits pre-fixed by the bank.

4. Discounting Trade Bills- Sellers often draw bills on their

customers purchasing goods on credit. The purchasers give their

acceptance. Such bills are being discounted by the sellers for

arranging short-term funds.

5. Advances from Customers- Many times some producers/sellers

receive whole or part of the amount of goods quite in advance and

such amount remains with them till the supply of goods. No

interest is paid on this amount. Therefore, it is cheaper source of

short-term financing.

6. Internal Sources- When a business concern establishes a

depreciation fund, this can be used to provide for working capital

financing at least till these are needed for replacing the assets.

7. Inter-corporate deposits- One more source for mobilizing short-

term funds for working capital requirements is to accept inter-

corporate deposits. Deposits made by one company in another

company are known as inter-corporate deposits. Such deposits

may be short-term or fixed term.

 OBJECTIVE OF STUDY

The main objective of the study is to get an over all picture of the organization
structure of Britannia industries ltd office in Rudrupur, Pantnagar and its
function. it also help to study how different department in an organization works ,
how they are connected with each other , how together they work to achieve the
organization goal of a firm or an organization. An MBA graduate should know
how different employees are working together for a common goal. He or she
should know how the job flows from different hierarchical levels. This report
basically consist work culture of the organization this report also highlights the
function, objective and financial position of the firm.
 To get the practical experience with the corporate world
 To come across the different types of situation in the corporate world.
 To study how the work flow in an organization.
 To gain the first hand practical knowledge of the overall function of the
organization in terms of various functional department.
 To learn about the present situation and performing of the company.
 PERIOD OF STUDY

The period of the study consists of six weeks from 26th of June to 10 th of
July, 2009 in a reputed industrial organization, Britannia, which is the
major FMCG sector in Rudrapur-Pantnagar zone.

Address of the company:

BRITANNIA INDUSTRIES LIMITED

INTEGRATED INDUSTRIAL ESTATE

PLOT NO.1, SITE NO.1,

RUDRAPUR-PANTNAGAR,

UTTARAKHAND

WEBSITE:-www.britannia.co.in
Basic Information

Company Name: Britannia Industries Limited

Business Type: Manufacturer
Cream Treat Orange, Cream Treat Cardamom, Cream Treat
Pineapple, Cream Treat Mango, Cream Treat Bourbon, Pure
Magic Vanilla, Pure Magic Chocolate, Little Hearts, Good Day
Product/Services: Cashew, Good Day Butter, Good Day Pista Badam, Marie Gold,
Vita Marie Gold, Nice Time, Nutrichoice Digestive, Tiger Glucose,
Tiger Cream-Banana, Tiger Cream-Strawberry, Tiger Cream-Rose
Milk, 50-50 Range
Britannia Industries Limited. -Exports Dept. , Airport Road,
Address:
Britannia Gardens, Vimanapura,
CREAMS,MARIE,TIGER,GOOD DAY,LITTLE
Brands:
HEARTS,COOKIES,FRUIT ROLL
Number of Employees: 501 - 1000 People
Company Website URL: http://www.britannia.co.in

Ownership & Capital

Year Established: 1917
Ownership Type: Corporation/Limited Liability Company
Legal Representative/Business
Chairman
Owner:

Trade & Market

North America
South America
Southeast Asia
Main Markets: Africa
Mid East
Eastern Asia
Western Europe
 COMPANY OVERVIEW

The story of one of India's favorite brands reads almost like a fairy tale. Once

upon a time, in 1892 to be precise, a biscuit company was started in a nondescript

house in Calcutta (now Kolkata) with an initial investment of Rs. 295.

The beginnings might have been humble-the dreams were anything but. By 1910,

with the advent of electricity, Britannia mechanized its operations, and in 1921, it

became the first company east of the Suez Canal to use imported gas ovens

As time moved on, the biscuit market continued to grow… and Britannia grew

along with it. In 1975, the Britannia Biscuit Company took over the distribution

of biscuits from Parry's who till now distributed Britannia biscuits in India. In the

subsequent public issue of 1978, Indian shareholding crossed 60%, firmly

establishing the Indianness of the firm. The following year, Britannia Biscuit

Company was re-christened Britannia Industries Limited (BIL). Four years later

in 1983, it crossed the Rs 100 crores revenue mark.

On the operations front, the company was making equally dynamic strides. In
1992, it celebrated its Platinum Jubilee. In 1997, the company unveiled its new
corporate identity - "Eat Healthy, Think Better" - and made its first foray into the
dairy products market. In 1999, the "Britannia Khao, World Cup Jao" promotion
further fortified the affinity consumers had with 'Brand Britannia'.
Britannia strode into the 21st Century as one of India's biggest brands and the
pre-eminent food brand of the country. It was equally recognised for its
innovative approach to products and marketing: the Lagaan Match was voted
India's most successful promotional activity of the year 2001 while the delicious
Britannia 50-50 Maska-Chaska became India's most successful product launch.
In 2002, Britannia's New Business Division formed a joint venture with Fonterra,
the world's second largest Dairy Company, and Britannia New Zealand Foods
Pvt. Ltd. was born. In recognition of its vision and accelerating graph, Forbes
Global rated Britannia 'One amongst the Top 200 Small Companies of the World'.
Today, more than a century after those tentative first steps, Britannia's fairy tale is
not only going strong but blazing new standards, and that miniscule initial
investment has grown by leaps and bounds to crores of rupees in wealth for
Britannia's shareholders. The company's offerings are spread across the spectrum
with products ranging from the healthy and economical Tiger biscuits to the more
lifestyle-oriented Milkman Cheese. Having succeeded in garnering the trust of
almost one-third of India’s one billion populations and a strong management at
the helm means Britannia will continue to dream big on its path of innovation
and quality. And millions of consumers will favor the results, happily ever after.
 MANAGEMENT TEAM

BOARD OF DIRECTORS

Name Designation
Mr. Nusli Neville Wadia Chairman
Ms. Vinita Bali Managing Director
Mr. A.K.Hirjee Director
Dr. Ajai Puri Director
Mr. Avijit Deb Director
Mr. Jeh N Wadia Director
Mr. Keki Dadiseth Director
Mr. Nimesh N Kampani Director
Mr. Pratap Khanna Director
Mr. S.S.Kelkar Director
 GAUTAM BANERJEE - General Manager – Materials
 ASHOK KUMAR GUPTA - General Manager - Accounts & Planning
 R K AGRAWAL - General Manager – Manufacturing
 R S SUBRAMANIAM - General Manager – Technology, Strategy,
Projects & Engineering
 ANURADHA NARASIMHAN - Category Director - Health &
Wellness
 SHALINI DEGAN - Category Director - Delight & Lifestyle
 BALAJI REDDIPALLI - Head Replenishment
 R. ANAND - Business Operations Director
 JEHANGIR TANKARIWALA - General Manager - Human
Resources
 VINOD MENON - Head of BNZF
 SHRIDHAR PANSHIKAR - National Sales Manager
 PURNENDU ROY - Head of R&D
 V. MADAN - Company Secretary & Head of Legal
 Dr. K.N. SHASHIKANTH - Corporate Quality Assurance Manager
 VALIVETI V PADMANABHAM - Corporate Manager - Information
Systems
 COMPANY PROFILE
Registered office of Britannia Industries Limited is situated in West Bengal. This
company is registered under Companies Act, 1956.

Britannia Biscuits Company Limited was originally incorporated on 21 st March

1918 under Indian Companies Act under the name “The Britannia Biscuits
Company Limited” under section 21 of Companies Act and approval of Central
Government.

The main aim of the Company is to make available good and improved quality
biscuits to each and every part of the country.

The Company has got the following certificates: ISO14001 and ISO 22000.

The Company was established at the Pantnagar branch on 21 st May 2005

mainly for production with a production coverage area of approximately 20
acres.

The control of management is through Board of Directors.

The Company’s head and registered office and works place are located at the
below mentioned addresses:

Registered Office’s

5/1/A Hungerford Street,

Kolkata - 700 017
West Bengal
Ph: 033 - 2287 0505 / 2287 2439 / 2287 2057
Fax: 033 - 2287 2501

Executive Office
Britannia Gardens,
Airport Road (old), Vimanapura
Bangalore - 560 017
Ph: 080 - 3940 0080
Fax: 080 - 2526 3265 / 2526 6063

Research and Development

191, MTH Road, Padi,
Chennai - 600 050
Tamil Nadu
Ph: 044 - 6614 8083
Fax: 044 - 2625 8563

Mumbai Office
Neville House, 1st Floor
Currimbhoy Road, Ballard Estate,
Mumbai - 400 001
Maharashtra
Ph: 022 - 2261 8071
Fax: 022 - 2262 6657
Kolkata
15, Taratola Road,
Kolkata - 700 088
West Bengal
Ph: 033 - 3048 8100 / 3048 8071
Fax: 033 - 2401 4456 / 2401 4451

Chennai
M T H Road, Padi,
Chennai - 600 050
Tamil Nadu
Ph: 044 - 3021 6000 / 3021 6001 / 3021 6002
Fax: 044 - 2625 8568 / 2625 4872

Mumbai
Reay Road (East), Mazagaon,
Mumbai - 400 010
Maharashtra
Ph: 022 - 6615 6240 / 6615 6245
Fax: 022 - 6615 6249 / 6615 6239
Delhi
33, Lawrence Road,
New Delhi - 110 035
Ph: 011 - 3078 8000
Fax: 011 - 2718 3499
Uttaranchal
Plot No.1, Sector – 1
Integrated Industrial Estate
Rudrapur, Pantnagar
Udham Singh Nagar Dist.
Uttaranchal – 263 153.
Ph: 09219418114/115/126
Fax: 05944 - 250 202
 MILESTONES
1892 The Genesis – Britannia established with an
investment of Rs.295 in a small house in central
Calcutta.
1910 Advent of electricity sees operation mechanized

1921 Imported machinery introduced ; Britannia becomes

the first company East times to reach Rs.1.36crore

1939-44 Sales rise exponentially to Rs.16,27,202 in 1939

During 1944 sales ramp up by more than eight times
to reach Rs.1.36crore

1975 Britannia Biscuit company takes over biscuit

distribution from parry’s

1978 Public issue – India shareholding crosses 60%

1979 Re-christened Britannia industries ltd.(BIL)

1983 Sales crossed Rs.100 crore.

1989 The executive office relocated to Bangalore

1992 BIL celebrate its platinum jubilee and launched ‘Little

Heart’

1993 Wadia Group acquires stake in ABIL,UK and becomes

an equal partner with Group Danone in BIL

1994 Volume cross 1,00,000 tons of biscuits

1997 Re-birth-new corporate identity ‘Eat Healthy, Think

Better’ leads to new mission. Make every third Indian a
Britannia consumer BIL enters the dairy product
market

1999 “Britannia Khao World Cup Jao” a major success

profit up by 37 %

2000 Forbes Global Ranking- Britannia among Top 200 small

companies. Britannia was ranked No.1food brand of the
company.
2001 BIL ranked one of India’s biggest brands No.1 food
brand of the country.

2002 BIL launches joint venture with Fonterra, the world’s

second largest dairy company
Britannia New Zealand Foods Pvt. Ltd. Is born
Economic Times ranks BIL India’s 2nd Most Trusted
Brand
Pure Magic –Winner of the World star, Asia star and
India star award for packaging
2003 ‘Treat Duet’- most successful launch of the year

2004 Britannia accorded the status of being a ‘Super brand’

Volumes cross 3,00,000 tons of biscuits
Good Day adds a new variant – Coconut – in its range

2005 Re-birth of Tiger – ‘Swasth Khao, Tiger Ban Jao’

becomes the popular chant! Britannia launched
‘Greetings’ range of premium assorted gift packs.
The new plant in Uttarakhand, commissioned ahead of
schedule. The launch of yet another exciting snacking
option – Britannia 50-50 Pepper Chakkar
2007 Britannia industries formed a joint venture with the
khimji Ramdas Group and acquired a 70% beneficial
stake in the Dubai- based Strategic Foods International
Co.LLC and 65.4% in the Oman-based Al Sallan Food
Industries Co. SAOG.
2008 Britannia launched Iron fortified ‘Tiger biscuits, ‘Good
Day Classic Cookies’, Low Fat Dahi and renovated
‘Marie Gold’.

NEW IN BRITANNIA-2009
Nutrition + Fun = Britannia

That's the success formula of India's leading bakery products

company

Zindagi Mein Life. That may be a hard-to-digest tag line, but that's
precisely what Britannia has been attempting to follow. The
mantra of India's leading bakery products firm is to continuously
infuse more zindagi into its lifeline - the seven pillar brands, each
of which does more than Rs 200 crore business.

The vigour in the company's operations seems to have increased

after two important events in the past couple of months - first, the
Wadias bought out French foods major Groupe Danone's stake in
the company; and second, Britannia ended its joint venture with
New Zealand-based Fonterra for the dairy business.

Britannia Managing Director Vinita Bali, of course, doesn't want to

talk about the tumultuous relationship the company had with
Danone as it's strictly a shareholder issue. "It never affected the
running of the business," she says.

She could well be right as despite the past problems, Britannia

controls a third of the Rs 8,000 crore biscuits market in India and
the seven pillar brands - Tiger, Good Day, Marie, Treat, 50:50,
Milk Bikis and Nutrichoice - have already become household
names across the country.

The only thing it is seeking to do now is to keep pace with India's

fast evolving consumption patterns and needs. In keeping with the
underlying theme that the company produces good food that is fun
to eat, the company is offering products spanning across segments
- right from a basic glucose biscuit to a wholesome wheat grain to
a richer creamy chocolate biscuit.

At the heart of the branding strategy is the belief that biscuits can
also fulfill various other consumption needs to remain with the
consumer throughout the day. Says Neeraj Chandra, VP & COO,
Britannia: "We see biscuits as part of a much larger macro-
snacking market with a lot of inter-linkages of points of
consumption. So our view of the market is that every category
interacts with several others… including within it." For example,
biscuits interact to some extent with snacks, to an extent with
beverages and to some extent with chocolates.

Within biscuits also, classically people have looked at this market

as glucose, cream, non-cream etc. But Britannia thinks otherwise.
For example, five years ago, the market was largely glucose. While
that still remains a large segment, the market has also evolved
into more affluent forms of consumption. "The ratio of cream
biscuits to glucose biscuits has changed dramatically in the last
five years," Chandra says.

This perhaps is the specific insight that has made Britannia

morph its glucose-only brand 'Tiger' into a much larger brand by
offering variety. The company has been in the glucose market
since the past decade and has managed to garner around 17 per
cent share in this high volume segment, lagging behind Parle's
share of around 65 per cent.

"Glucose is part of Tiger, but Tiger is more than glucose. We are

leaders in all segments except glucose biscuits. It is the biggest
turnover generator as volume is high. With Tiger we are looking at
a broader canvas of kids' nutrition, and glucose is a part of it.
Under the Tiger brand, we are offering a range of other varieties
including cream, banana flavour, fortified with iron and others.
Glucose is a big chunk. It is growing but others are also showing
good growth," Chandra says.

But wanting to move away from a historical only-glucose offering,

Britannia is also leveraging the fact that children want to have fun
along with nutrition. "It is a combination of positioning as a brand
which is more enjoyable and good for you. The reason is kids like
variety in any kind of segment and that is our approach behind
expanding the Tiger brand," Chandra says.

The company is also constantly expanding its list of brands with a

sharp focus. Example: Three years ago, broadly two to three
brands were active - Goodday, Tiger and to an extent Marie. But
the base has now been enlarged to seven powerful brands.

But some brand and marketing consultants wonder whether

Britannia is spreading itself too thin. Says a consultant: "It's a
two-way sword and it depends on how well they are able to
execute this strategy in the market place."

But Chandra counters this by saying "For the past 12 quarters, we

have been recording a 20 per cent compounded growth rate and it
is a reasonable period. So far so good, but how it will pan out in
the future, we do not know. But we are working to ensure growth."

That explains why the company is not only expanding its biscuits
range with variations, it is also parallelly widening its presence in
the bread, rusks and cakes market too.
Danone to Sell Entire Stake in Britannia Industries

BANGALORE -- France's Groupe Danone SA has decided to sell its entire stake
in Britannia Industries Ltd., giving the Indian biscuit maker's majority holding to
a company which belonged to the Wadia group.
Leila Lands Ltd. (Mauritius), in a regulatory filing in India said that it will buy
6.086 million equity shares, representing a 25.48% stake in Britannia Industries,
on April 14 from Danone's U.K. unit Britannia Brands Ltd.
The purchase will double Leila Lands' stake in Britannia Industries - India's top
biscuit maker by sales - to 50.96%.
The deal could end a long-standing dispute between Danone and the Wadias of
India's Bombay Dyeing Group over the French food company's plans to launch
its products on its own in the Indian market, said analysts.
Under a 1995 contract, Danone had agreed not to launch any food brands in India
without the Wadia family's consent.
The sale could also resolve the tussle over the intellectual property rights of the
Indian company's Tiger brand of biscuits. Britannia Industries claims Danone
sells the biscuits in other markets and demands compensation from the French
company.
"This is a positive development for Britannia as the issue had been dragging on
for some time," said Anand Shah, an analyst at Mumbai-based Angel Broking.
Also, "a resolution means the Britannia management will now have a free hand to
go ahead with its strategic plans," he added.
"However, it still needs to be seen as to what the Wadias have paid to buy out
Danone's stake and what are the other contours of the settlement."
Though the notice from Leila Lands didn't disclose financial details, media
reports earlier had said the Wadias were looking to buy the stake at a discount.
The French dairy and beverage giant and Wadia group each own half of
Associated Biscuits International Ltd., which holds 50.96% of Britannia
Industries, giving each partners control of 25.48% of the biscuit maker.
Britannia Industries declined to comment on the issue, while Danone couldn't be
reached.
Bombay Dyeing, in an emailed statement, said, "The notice is already clear that it
is an inter-se transfer between the qualified promoters," under the rules of stock
market regulator Securities and Exchange Board of India.
WHAT MAKES A BRITANNIAN……………………

If you think Britannians are extraordinary individuals who are passionate about
everything they do…create inspiration through everything they do…and succeed
in everything they do…you’re probably right.

Britannians are hand-picked for a singular purpose…to perpetually ensure

Market Leadership and generate exemplary performance in every function.

Britannians exhibit the following leadership behaviors (called as BULBs –

Britannia Universal Leadership Behaviors) :
 Integrity
 Team Orientation
 People Development
 Learning Orientation
 Customer Orientation
 Quality Orientation
 Drive for Results
 Entrepreneurial Spirit
 System and Process Orientation
 Communication
BONUS AND DIVIDEND PATTERN
Britannia has an excellent track record of rewarding its shareholders. The company has an
uninterrupted record of distributing dividends for several decades. The dividends declared over
the last 10 years are as under:

Year Dividend Percentage

1996 40.00
1997 40.00
1998 50.00
1999 55.00
2000 45.00
2001 55.00
2002 75.00
2003 100.00
2004 110.00
2005 140.00
2006 150.00
2007 150.00
2008 180.00

Bonus History

Year Bonus Particulars

1961 1 equity share for every 2 shares held
4 equity shares for every 10 shares
1966
held
2 equity shares for every 3 shares
1968
held
2 equity shares for every 3 shares
1971
held
7 equity shares for every 10 shares
1976
held
2 equity shares for every 5 shares
1984 held

2 equity shares for every 5 shares

1987
held
1990 1 equity share for every 2 shares held
2000 1 equity share for every 2 shares held
 2009: Britannia Board approves Bonus Debentures

The Board of Britannia Industries Ltd on May 27th, 2009 approved a scheme for
the issue of bonus debentures by drawing upon the General Reserves of the
Company which have been created through retained earnings / undistributed
profits. This scheme is subject to approval by the shareholders of the Company as
well as the High Court of Judicature at Kolkata and statutory and regulatory
authorities. This was considered as a part of “any other business” of the agenda.

The scheme, formulated under Sections 391 to 394 of the Companies Act, entails
issue and allotment of bonus debentures of the face value of Rs 170/- each, in the
ratio of one fully paid debenture of Rs 170/- each for every Rs 10/- equity share
held in the Company on a record date to be fixed by the Board, after the scheme
is sanctioned by the Kolkata High Court. The debentures will be secured, and
redeemable at par on the third anniversary of the issue. The Company intends to
apply for listing of these debentures on NSE and BSE. The debentures would
carry an interest rate not exceeding 8.5% per annum. The debentures will be
considered as a `deemed dividend` under the provisions of the Income Tax Act.
Britannia would bear and pay, in addition, dividend distribution tax at 16.995%
on the issue out of the General Reserves.

The issue and allotment of the debentures will account for approximately Rs.
4,062 MM from the General Reserves. The dividend distribution tax will account
for about Rs. 690 MM from the General Reserves. Thus, a total amount of
approximately Rs. 4,752 MM will be utilized from the Company’s General
Reserves.

Britannia will now make necessary applications to the Securities and Exchange
Board of India (SEBI) and subsequent to its approval, to the Kolkata High Court
for its direction to convene a meeting of shareholders to seek their consent.
 ACTIVITIES OF THE COMPANY

Quality
Assurance
Research &
Development Sales

Human
Resources & Activities
Marketing
Legal

Finance & Exports

IT
Technical &
Operations
 HISTORY OF BISCUITS

Sweet or Salty, Soft or Crunchy, Simple or Exotic, Everybody loves munching on

biscuits, but do they know how biscuits began? The history of biscuits can be
traced back to a recipe created by the Roman chef Apicius, in which “a thick
paste of fine wheat flour was boiled and spread out on a plate. When it had dried
and hardened it was cut up and then fried until crisp, then served with honey and
pepper.”
The word ‘Biscuit’ is derived from the Latin words ‘Bis’ (meaning ‘twice’)
and ‘Coctus’ (meaning cooked or baked). The word ‘Biscotti’ is also the
generic term for cookies in Italian. Back then, biscuits were unleavened, hard and
thin wafers which, because of their low water content, were ideal food to store.
As people started to explore the globe, biscuits became the ideal traveling food
since they stayed fresh for long periods. The seafaring age, thus, witnessed the
boom of biscuits when these were sealed in airtight containers to last for months
at a time. Hard track biscuits (earliest version of the biscotti and present-day
crackers) were part of the staple diet of English and American sailors for many
centuries. In fact, the countries which led this seafaring charge, such as those in
Western Europe, are the ones where biscuits are most popular even today.
Biscotti is said to have been a favorite of Christopher Columbus who discovered
America!

Making good biscuits are quite an art, and history bears testimony to that.
During the 17th and 18th Centuries in Europe, baking was a carefully controlled
profession, managed through a series of ‘guilds’ or professional associations. To
become a baker, one had to complete years of apprenticeship – working through
the ranks of apprentice, journeyman, and finally master baker. Not only this, the
amount and quality of biscuits baked were also carefully monitored.

The English, Scotch and Dutch immigrants originally brought the first cookies
to the United States and they were called teacakes. They were often flavored with
nothing more than the finest butter, sometimes with the addition of a few drops of
rose water. Cookies in America were also called by such names as “jumbles”,
“plunkets” and “cry babies”.
As technology improved during the Industrial Revolution in the 19 th century,
the price of sugar and flour dropped. Chemical leavening agents, such as baking
soda, became available and a profusion of cookie recipes occurred. This led to
the development of manufactured cookies.
Interestingly, as time has passed and despite more varieties becoming
available, the essential ingredients of biscuits haven’t changed – like ‘soft’ wheat
flour (which contains less protein than the flour used to bake bread) sugar, and
fats, such as butter and oil. Today, though they are known by different names the
world over, people agree on one thing – nothing beats the biscuit!
PRODUCTS REPRESENTING BRITANNIA

BRITANNIA TREAT MAGIC MASTI NUTRICHOICE

SUGAROUT

NUTRICHOICE DIGESTIVE BISCUITS TREAT FRUIT ROLLZ

BRITANNIA MARIE GOLD

DOUBLES
LITTLE HEARTS

B
RITANNIA 50-50 PEPPER CHAKKAR BRITANNIA GOODDAY
 TIGER TIGER-Banana

TREAT
BRITANNIA MARIE GOLD

BRITANNIA NUTRICHOICE
 BRITANNIA MILK BIKIS

BRITANNIA
PREMIUM BAKE
BREAD

BRITANNIA PREMIUM RUSKS

BRITANNIA FRUIT CAKES

 The Origin of 'Eat Healthy Think Better'

Britannia -the 'biscuit' leader with a history-has withstood the tests of time.
Part of the reason for its success has been its ability to resonate with the
changes in consumer needs-needs that have varied significantly across its
100+ year epoch. With consumer democracy reaching new levels, the one
common thread to emerge in recent times has been the shift in lifestyles and a
corresponding awareness of health. People are increasingly becoming
conscious of dietary care and its correlation to wellness and matching the new
pace to their lives with improved nutritional and dietary habits. This new
awareness has seen consumers seeking foods that complement their lifestyles
while offering convenience, variety and economy, over and above health and
nutrition.

Britannia saw the writing on the wall. Its "Swasth Khao Tan Man Jagao" (Eat
Healthy, Think Better) re-position directly addressed this new trend by
promising the new generation a healthy and nutritious alternative - that was
also delightful and tasty.

Thus, the new logo was born, encapsulating the core essence of Britannia -
healthy, nutritious, optimistic - and combining it with a delightful product
range to offer variety and choice to consumers.
 THE PRODUCTS…………….

BURBOUN:

Thick, rich and delicious chocolate packed between two crunchy chocolate
biscuits, topped with sugar crystals - presenting, the original Bourbon, from the
house of Britannia.
India's first and favorite Bourbon's sweet adventure began in 1955. Since then,
Bourbon lovers across the country have been caught opening this chocolate
couplet, licking the cream, and nibbling at the melt-in-your-mouth biscuit, bit by bit.
Some have been witnessed chomping it whole, at one go. Some have been noted
to alternate it with sips of coffee; others team it with lots of gossip and gupshup,
while a few have been observed enjoying it with a book.
And some have been seen reluctantly sharing their Bourbon.
Whatever the occasion, wherever the hangout, Bourbon makes for great company.
You can grab your very own Nano Pack or a Pocket Pack. The Hangout Pack is
just right for chilling with friends. Take along a Party Pack for... yes, a party! And
the Gift Pack will surely win you a few brownie points!
So go on, give yourself a happy high with a quick dose of Britannia Bourbon.

LITTLE HEARTS:

Little Hearts was launched in 1993 and targeted the growing youth segment. A
completely unique product, it was the first time biscuits were retailed in pouch packs
like potato wafers. In 1997, the 'Direct Dil Se' campaign encouraged youngsters to
openly express their feelings. And in 2003, two variants called Little Hearts Chocolate
and Little Hearts Sesame were rolled out with a campaign "Dil sabka actually sweet
hai". With Little Hearts, Britannia has tasted the sweet taste of success.

BRITANNIA TIGER BANANA:

Britannia is committed to help secure every child s right to growth and development
through good food every day. Purpose fully taking forward the credo of ‘Eat Healthy
Think Better’ launched a new variant under our power brand tiger. Britannia Tiger
Banana packed with IRON ZOR and goodness of banana is accessible to all, being
available to convenient pack priced at Rs.2, Rs.4and Rs.10.
 BRITANNIA GOODDAY:

Britannia Good Day was launched in 1986 in two delectable avatars - Good Day
Cashew and Butter. Over the years, new variants were introduced - Good Day Pista
Badam in 1989, Good Day Chocochips in 2000 and Good Day Coconut in 2004.

TIGER:
Tiger, launched in 1997, became the largest brand in Britannia's portfolio inthe very
first year of its launch and continues to be so till today. Tiger has grown from strength
to strength and the re-invigoration in June 2005 has further helped bolster its growth in
the highly competitive glucose biscuit category.

TREAT:
Britannia launched Treat in 2002. Treat has a range of tasty delights for all kids with
yummy creamy treasures within the biscuit shells. Britannia Treat offers a wide variety
of flavors, such as the classic Bourbon & Elaichi, the Fruit Flavored Creams such as
Orange, Pineapple, Mango, and Strawberry, the Jam Filled Centers under the Jim
Jam range, and the Duet Range (biscuits with two flavours of cream between three
layers of biscuit) comprising Strawberry Vanilla and Duet Strawberry Chocolate.

MARIEGOLD:

Britannia's oldest brand enjoys a heritage that spans the last 50 years - and going
strong. In a market swamped with me-too products and where even the name 'Marie'
has become generic, Britannia Marie Gold has maintained its stronghold. Today, the
ever-popular Marie Gold is synonymous with the 'Tea Time Biscuit'. Its taste,
crispiness and lightness make it a must for every tea break. It is the #1 brand in its
category by a long shot.

NUTRICHOICE:

In continuation of the promise of "Swasth Khao, Tan Man Jagao," Britannia introduced
NutriChoice range of healthy biscuits in 1998. The brand is targeted towards overall
health and wellness for adults.
The range has for long comprised of three popular variants, namely NutriChoice
Thin Arrowroot, NutriChoice Cream Cracker and NutriChoice Digestive.
MILK-BIKIS:
Milk Bikis, the favorite growth partner of Kids, now brings greater value and delight to
all with its new product and pack design. Recently re-launched in its existing Southern
& Eastern markets, and extended across India, the new Milk Bikis is all set to add
excitement and appeal to ‘nutritious’ food. Whoever said that ‘good food’ needs to look
‘dull and boring’, will just have to take a look at Milk Bikis.
With a unique and attractive honeycomb design and an enhanced product experience,
the new biscuit prompts the ‘Kid’s will love it’ reaction amongst mothers.

BREAD:
Till 1958, there were no breads in the organized sector and bread consumption was a
habit typed by the British. Then, a mechanized bread unit was set up in Delhi with the
name “Delbis” which produced sliced bread and packed it under the Britannia name.
The Mumbai unit came up in 1963. And there again Britannia was the first branded
bread in the city.

CAKES:
Britannia entered the cake market in the year 1963 and is the top player in the market.
Britannia Cakes range is divinely scrumptious and has both Bar Cakes and Cup
Cakes which were launched in 2005. Bar Cakes are available in variants that include
Fruit, Butter Sponge, Chocolate, Pineapple, Milk, Vanilla Chocolate and Orange.
RUSKS:
Britannia launched its Rusks in the year 2005. In a Market full of unbranded players,
Britannia rusks have stood head and shoulders above the rest in terms of sheer
quality .They are made from the finest ingredients and baked with care as they are
twice as crisper as and tastier than ordinary rusks. The communication for this
mouthwatering offering is aptly “Enliven your spirits with Britannia rusks”.
Britannia Tiger's 'Alti Palti' Offer for Children

Alti Palti as the name suggests is an exciting offer, which introduces children to a
playful but functional range of gifts. Lenticular or 3D picture collections are a popular
phenomenon amongst children and this year, Britannia Tiger the most popular biscuit
brand in the country will reward children with Lenticular gifts such as rulers, book
labels, bag tags and stickers on the purchase of every Rs. 3 and Rs. 4 pack of
Britannia Tiger. Each gift has the animated Tiger mascot on it doing a series of things
like skate-boarding, cycling, dancing and more.

The new offer is currently available in retail stores across the country. Consumers can
also witness attractive dispensers and Britannia Tiger branded posters and display
material based on the Alti Palti theme in stores.

A life size Tiger mascot is also slotted to visit select schools distributing the 3D
collection to lucky children. This could well be the chance for kids to photograph
themselves hand in hand with a Tiger.

The Britannia Tiger Alti Palti offer is an innovative yet indulgent proposition that has
already become a craze amongst children of all age groups across the country. The
Alti Palti offer is seen as the most exciting promotion ever from the brand to reward its
loyal consumers.

About Britannia Tiger

Britannia Tiger was launched in 1997 to cater to consumer needs in the growing
glucose biscuit category. It subsequently became the largest brand in Britannia's
portfolio in the very first year of its launch. Britannia Tiger has since grown from
strength to strength, establishing itself as a formidable player in the glucose biscuits
category.

The brand was re-launched in June 2005 with a new marketing mix including a
superior product, refreshed packaging and new communication. The re-launch this
year has helped Tiger bolster its growth in the highly competitive glucose biscuit
category.

Britannia Tiger today partners winners across the length and breadth of our country
and has become the first choice of today's mother to enable her child to win in life by
tapping into her child's inner pool of energy and fun. Tiger is the modern mother's
choice for providing the best collaborative care for her child.

BRITANNIA OVERSEAS:
Britannia in the Middle-East

In March 2007, Britannia Industries Limited formed a Joint Venture with

the Khimji Ramdas Group, one of the largest and the most respected
business conglomerates in the Middle East. Britannia and its Associates
have acquired a significant stake in Dubai based Strategic Food
International Co. LLC and Oman based Al Sallan Food Industries Co
SAOG. The two companies are key regional players in the biscuits,
wafers and cookies segment in the GCC markets and export their
products across the world.

Strategic Food International Co. LLC (SFIC) is one of the largest biscuit
and wafer manufacturing companies in the Middle East. An ISO and
HACCP certified company; SFIC is also a proud winner of the Dubai
Quality Appreciation Certificate. It offers a wide spectrum of products
under the brand Nutro, which is a leading biscuit brand in the Middle
East.

Al Sallan Food Industries Co is one of the foremost companies for the

production of cookies, rolls and chocolates. The products are well known
under the brand name of Baker's Pride.

Britannia in Sri Lanka

29th August 2008 goes down in the history of our company as the day,
when Britannia started manufacturing and marketing its products in Sri
Lanka. Apart from tapping new markets and going international, our
company will afford many more families and individuals a chance to enjoy
healthy, nutritious and delightful products. Even as we navigate foreign
territories, we affirm our purpose, values, vision and goals in Sri Lanka- to
help people enjoy life, through healthy snacking, and make this
accessible to all people anywhere, everyday…

Products manufactured in Sri Lanka include the most popular Milk Bikis,
Milk Cream Smileys, Vita Marie Gold, Creams and Cookies.

COMPANY PERFORMANCE FOR THE YEAR 2008-09

As they do every year, Economic Times and AC Nielsen have announced
the most trusted brands rated by consumers all over India and across
categories. I am pleased to share with you that once again Britannia was
in the India Top 10 list, ranked #9 across all categories and #2 in the food
category. Last year, our rank was #7 and #2 respectively.

When our brand is 'owned' and deeply trusted by people across the
country, our task to keep it shining is greater and our responsibility to earn
that trust every day, more significant. Simply stated, that means we have
to deliver on that promise of quality every day, every time, because in a
world of choice and change consumers will move to other alternatives if
we let them down.

INDIAN BISCUIT MARKET

 SEGMENTATION OF THE INDIAN BISCUIT MARKET BIL- The leading player in Bakery Products

The biscuit market in India is extremely price sensitive.

With Parle providing most of its biscuits in the range of Rs. 4.00-6.00, other players in the market can't think of
increasing the prices. Role of distribution channel is very crucial for any FMCG product. .BIL has a retail
distribution network that services 400,000 retail outlets in 2,200 towns with the help of 2,500 distributors. The
company is constantly expanding its product portfolio and retail network..

THE PANTNAGAR UNIT

 Registered office:
Plot No.1, Sector – 1
Integrated Industrial Estate
Rudrapur, Pantnagar
Udham Singh Nagar Dist.
Uttaranchal – 263 153.
Ph: 09219418114/115/126
Fax: 05944 - 250 202

INTRODUCTION
 Britannia industries limited was established at Pantnagar on 1 stApril 2005 in the
area of approximately 20 acres mainly for the purpose of production of biscuits
as this area is free from almost all types of taxes.

In Britannia Industries Limited there are many types of departments which

are inter connected to each other and work together for the welfare of the
Company as the whole. There is a well built communication system inside the
Company which helps in doing the work on time and with full efficiency and
effectiveness.

The departments of the Company includes Quality assurance, Stores,

Production, Purchase, Maintenance, Engineering, Packaging and dispatch,
Personnel and training, Finance, legal and administrative security.

New concept like 5S is also being implemented in Britannia Industries

Limited. The Company is perusing for ISO 14001 certificate and it is ISO 22000
certified.

There are four plants in operation in the Company at this branch. First plant
is for Marie Gold which has a flexi line for Good day also. Second plant is for
Good Day, Third one is for 50:50 variants, Pepper chakkar and Maska Chaska.
Fourth and last plant is for Cream Plant which has a flexi line & producing the
Variety Bourbon , Orange Treat & Milk Bikis Milk Cream also.

COMPANY EVENTS
 Bhumi poojan of Britannia industries limited was on 20 th may 2004.
 Machinery was set up on 23rd march 2005.
 Production trial was taken on 23rd march 2005 itself.
 Actual production was started on 1st April 2005.
 First dispatch of finished goods was done on 20th April 2005.
 Biggest plant of the company is plant number two.
 The company is set up in an area of approximately 20 acres.
 Minimum production of the company is 170 tons per day.
 Maximum production is 245 tons per day.
10) Control of management is through Board of Directors.
11) It is a public limited company.
12) The auditors of the company are Lovelock & Lewes.
13) The bankers of the company are:

o State Bank of India.

o Standard Chartered Bank.
o ABN Aroma Bank.
o City Bank.
o The Hong Kong & Shanghai Banking Corporation limited.
o Bank of America.
o HDFC Bank limited.
o ICICI Bank limited.
o Indian Bank
o Deutsche Bank

DEPARTMENTS OF THE COMPANY

  HUMAN RESOURSE
 FINANCE
 PURCHASE
 PRODUCTION
 MAINTANANCE
 QUALITY ASSURANCE

HEADS OF DEPARTMENTS OF THE COMPANY

 Finance: Mr. Mudit Agarwal

 Human Resource: Mr. Mayank Shrivastava

 Production : Mr. Mahak Singh/Mr.S.Srinivasan Iyer/Ms.

Gunjan Chawla

 Purchase: Mr. Anil Sharma

 Engineering: Mr. Sajeev Koshy

 Unit Head: Mr. V.K. PRUTHI

PLANT VISIT
 Not all the brands of Britannia are produced in this branch only some brands of
biscuits are produced at this branch.
Production of biscuits in Britannia Pantnagar branch is divided in to four Plants.

 Plant I
1. Good day butter
2. Good day Pista Badam

 Plant II
1. Good day cashew
2. Good Butter.

 Plant III
1. Fifty- Fifty (50-50)
 50-50
 50-50 Maska Chaska
 50-50 Pepper Chaker

 Plant IV
1. Chocolate treat bourbon
2. Orange treat
3. Milk Bikis Milk Cream.

OBJECTIVES OF THE UNIT

 Investing in appropriate technology.
Working collaborators with the business
partners.
Quality products to customers.
Continuous training and retraining of the
employees to create culture that value quality
and food safety as a core pillar of the
business.
To control the wastage and save time and
efforts.
To minimize the production cost.

STORAGE AND USAGE OF RAW MATERIAL

There are many types of raw materials which are used in Britannia for the production
of different types of biscuits. Some of them are – wheat flour, sugar, butter, skimmed
milk powder, cashew, salt, different types of fats which includes different oils, sodium
bi carbonate, ammonium bi carbonate etc.
Now the question comes of their storage. As we can see that some of the materials
which are used in Britannia industries need cold storage while some needs normal
storage. So on the basis of the need of different raw materials they are stored in
different storage places. The materials which are stored in cold storage are at the
temperature of 5 degree Celsius while the materials which need normal storage are
stored at the normal temperature. The classification of some of the raw materials is

as follows:

Normal storage raw material

Wheat flour
Sugar
Ammonia
Skimmed milk powder
Palm oil
Salt

Cold storage raw material

Butter
Cashew
Essences
Skimmed milk powder
Condensed milk
HOW THE PRODUCTION PLAN COMES?
The production plan comes directly from company’s head office which is situated
at Bangalore every month.
The plan consists of:
 Variety name
 How much production to do for the particular variety.
 Total production in tons.
 Area where varieties will be dispatched along with quantity.
 Dispatch order.
THINGS YOU DON’T KNOW ABOUT BRITANNIA

o Britannia products are sold in over two million outlets,

reaching millions of customers who buy approximately
2.4 billion packets each year.
o A small army keeps Britannia going – over 180 stock
keeping units, 3000 employees, over 2200 authorized
whole sellers and 56 depots.
o The number of biscuits produced by Britannia in one
year would be the equivalent of one pack of twelve
biscuits for every two people in the world.
o Stacked on top of each other, all Britannia biscuits sold
in a year would stand 10,000 times taller than Mount
Everest.
o Britannia has had a long association with cricket and
cricket players. Nearly half the members of the current
Indian cricket team serve as its brand ambassadors.
Launched in 1997, Tiger became the largest selling Britannia biscuit brand
in just 4 months of launch. It crossed Rs.1 billion sales mark in its very first
year and is growing stronger
 The Finance Department.
Finance is the heart of any business enterprise. The Finance
Department’s main concern is profit. It also controls and analyzes
that from where the money is coming and where it is going. Is it
being used prudently or is being lost. Not only it should be utilized
to the optimum level it should also be available cheap.
At the Plant in Pantnagar the finance department comprises of an
efficient and dedicated team of professionals inspired by a devoted
and energetic head. Every happening is looked at very minutely
and systems and practices are never overlooked at the department.

Mr. Mudit Kumar Agarwal - Manager Accounts.

Mr. Sumit Mathur -Accounts Officer.

Mr. Ankur Agarwal -Accounts officer.

Mr. Vinod Tiwari -Accounts officer

 COMPETITORS OF FMCG COMPANY

 Hindustan lever LTD

 ITC LTD

 Nirma LTD

 Nestle Indian LTD

 Britannia

 Colgate- Palmolive (India) LTD

 Godfrey Philips India LTD

 Dabur India LTD

 Godrej Soaps LTD

 Cadbury India LTD

 Procter & Gamble Hygiene & Healthcare LTD

 PARLE-GE pvt.ltd

 Cadbury India ltd

SWOT ANALYSIS

STRENGTH

 Goodwill of company
 Financially very strong company
 Effective well designed and developed production and marketing network.
 Superior quality and service to provide maximum benefits to customers.
 The family environment in the company.
 Dedicated work force.
 Continuous growth.
 Market share of the company.
 Tax benefit to the company.

WEAKNESSES

 Limited Storage capacity.

 Land is not properly utilized.
 Raw material is wasted at the time of unloading.
 Unit is situated far away from main plant.
 The HR department, which according to me is the image of an
organization, has been overlooked by the Heads.

OPPORTUNITIES

 There can be minimization of waste

 There must be more efficient utilization of the raw material.

 More and more incentives should be given to workers to motivate them

which help in increasing the employee moral
 .
 There can be use of the foreign technologies for efficient utilization of raw
material so that the production of a biscuit can be increased.

 Land can be used more efficiently.

THREATS

 New entrants in the business

 Threats of substitute products.

 Availability of the other brands

 Rivalry among the competitions.

 Changes in Taste and preference of customers.

 Inflation.
 ANNEXURES

Profit & Loss a/c.

Schedule of Changes in working Capital.
Funds Flow Statement.
 z
PROFIT AND LOSS FOR THE YEAR
DESCRIPTION OF GOODS 2009 2008
G/L
CODE INCOME AMOUNT AMOUNT
A. MISCELLANEOUS SALES - (SCRAP/EMPTIES/OTHERS)
305001 GJV SAMPLES 12,325,845.87 11,228,658.55
417009 INTEREST INCOME - DEPOSITS -11,211.45 -93,049.98
302000 PROFIT ON SALE OF ASSET 180,427.00 0
303000 ASSET WRITE OFF ACCOUNT 0 649,651.68
428000 TOTAL -101,150.22 -257,362.76
OTHER RECEIPTS 12,393,911.20 11,527,897.49
B. MISCELLANEOUS SALES - BY PRODUCTS
305003 GUEST HOUSE RECEIPT 83,666,166.67 42,280,844.96
305017 MISC Income - Scrap Sales 0 18,850.00
305802 CASH DISCOUNT RECEIVED 50,000.00 0
307000 EXCHANGE DIFFERENCE 546,393.01 232,190.27
420014 TOTAL 0 -173,896.00
TOTAL INCOME 84,262,559.68 42,357,989.23
EXPENDITURE 96,656,470.88 42,435,133.50
CONSUMPTION OF MATERIAL
A. LOSS - INVENTORY - FG PRICE DIFFERENCE
306003 LOSS / GAIN - FROM STOCK TRANSFER - FG 44,499,306.76 27,598,079.16
306004 GAIN - INVENTORY - FG PRICE DIFFERENCE 282,179.20 314,264.24
306005 LOSS - VALUATION - EXTERNAL MATERIAL 297,406,764.44 210,748,395.95
306006 GAIN - VALUATION - EXTERNAL MATERIAL 25,951,509.89 2,937,559.03
306007 LOSS - INVENTORY GOOT PRICE DIFFERENCE 30,973,936.35 12,330,829.19
306008 GAIN - INVENTORY GOOT PRICE DIFFERENCE 197,464,523.24 118,528,583.03
306009 LOSS / GAIN - INVENTORY POFG 210,132,261.50 158,794,684.45
306050 INVENTORY CHANGE - FINISHED GOODS 149,507.69 1,492,991.82
306100 INVENTORY CHANGE - GOOT CONSUMED 12,394,328.77 0
306101 INVENTORY CHANGE - FG SUB-CONTRACTING 2,854,999,034.44 2,093,389,683.38
306110 INVENTORY CHANGE - COST OF GOODS SOLD 2,715,418.00 0
306200 INVENTORY CHANGE - (SAMPLES&GJV) 0 4,184.55
306321 INVENTORY CHANGE - (SAMPLES&GJV) - SD 21,178.16 106,777.87
306322 INVENTORY CHANGE - FACTORY PRODUCTION - FG 11,211.45 93,049.98
306500 INVENTORY CHANGE - FACTORY PRODUCTION - GOOT 2,901,686,964.71 2,160,554,356.13
306501 CONSUMPTION - INGREDIENTS 2,838,811,742.80 2,054,132,634.70
400000 CONSUMPTION VARIANCE - INGREDIENTS 2,382,445,540.02 1,731,991,688.64
400001 CONSUMPTION - INGREDIENTS LEGACY 46,305,343.27 11,479,233.28
400008 TOTAL 2,325,312.00 8,318.60
SALARIES WAGES BONUS AND COMMISSION -812,161,846.35 -631,761,053.36
B. SALARIES - MANAGER
408000 SALARIES - OFFICERS 8,655,245.22 7,165,181.14
408001 SALARIES - STAFF,SUB-STAFF & OTHERS 10,856,380.40 9,861,362.30
408002 WAGES - WORKERS 1,147,296.72 278,358.00
408004 BONUS / COMMISSION - STAFF,SUB-STAFF & OTHERS" 15,831,418.95 10,587,026.00
408007 BONUS / COMMISSION - WORKERS 0 17,868.00
408009 TOTAL 1,964,612.00 1,493,136.40
DEPRICIATION ACCOUNT 38,454,953.29 29,402,931.84
C. DEPRECIATION ACCOUNT
407000 TOTAL 62299306.07 56,273,275.64
PACKING MATERIAL CONSUMED 62,299,306.07 56,273,275.64
D. CONSUMPTION - PACKING MATERIAL -OTHERS
401000 CONSUMPTION - CASE & CASE CLOSING MAT 331,724,493.13 238,393,906.53
401001 CONSUMPTION VARIANCE - PACKING MATERIAL 31,871,793.15 23,306,784.79
401003 CONSUMPTION CBB'S - ONLY 14,871,402.74 6,127,944.90
 WORKING CAPITAL OF BRITANNIA
INDUTRIES LIMITED ,RUDRAPUR
CURRENT ASSETS,
G/L LOANS AND %
CODE ADVANCES 2008-09 2007-08 DIFFERENCE

INVENTORY

A. Stores & Spare parts

205 (723,9 (34
002 INVENTORY HSD 1,355,707.54 2,079,700.84 93.30) .81)
205 (267,5 (100
003 INVENTORY LDO 0 267,595.23 95.23) .00)
205 INVENTORY ENGINEERING 4,780,7 61
004 STORES 12,528,075.74 7,747,359.72 16.02 .71

205 2,495,3
013 INVENTORY PROPANE FUEL 2,495,385.00 0 85.00
16,379,168.2 10,094 6,284,
TOTAL 8 ,655.79 512.49 62.26

PACKAGING MATERIAL
206 (573,6 (2
001 INVENTORY PACKING MATERIAL 24,617,712.71 25,191,402.14 89.43) .28)
206 INVENTORY CBBS, CASE & CASE (38,1 (0
002 CLOSING MATERIAL 3,821,909.16 3,860,042.56 33.40) .99)

28,439,621.8 29,051,444.7 (611,8 (2

TOTAL 7 0 22.83) .11)

B. RAW MATERIAL -
206 186,725,092.0 144,949,045.5 41,776,0 28
000 INVENTORY INGREDIENTS 2 0 46.52 .82

186,725,092. 144,949,045. 41,776,0 28

TOTAL 02 50 46.52 .82

C. FINISHED GOODS -

207 INVENTORY FINISHED STOCK - (5,013,6 (30

003 BISCUITS 11,381,855.01 16,395,538.31 83.30) .58)
11,381,855.0 16,395,538.3 (5,013,6 (30
TOTAL 1 1 83.30) .58)

D. WIP -
207 1,215,0 138.
013 TOTAL 2,091,474.51 876,386.75 87.76 65

1,215, 13
INVENTORIES TOTAL 2,091,474.51 876,386.75 087.76 8.65

E. SUNDRY DEBTORS -

210 ACCOUNTS RECEIVABLE - (4,374,4 (46

000 DOMESTIC 4,967,013.62 9,341,485.69 72.07) .83)
(4,374,4 (46
TOTAL 4,967,013.62 9,341,485.69 72.07) .83)

F. CASH & BANK BALANCE -

211 COIN ADJUSTMENT - ASSET
024 ACCOUNT 8.23 0 8.23
211 (8,0 (86
043 CASH IN HAND - UTTARANCHAL 1,237.00 9,271.00 34.00) .66)
 REMARK’S………..

1. The company has started the Alternate baking fuel “Propane" which required
to get the lead time of approx. 7-8 times.

2. Inventory of Engg material is high by 61% as compare to previous year due to

frequently maintenance activity & keeping of high valued items. Most of the
Inventory having high cycle time

3. Reduction in packing material of approx 2.11 % showing release of Working

capital to be used in other activities.

4. Increase of approx. 28.82% in Inventory -Ingredient due to different SKU’

production which required the availability of inventory at their specific intervals
causes the blocking the working capital

5. FG Inventory has been reduced by 30.58% which shows the effective

Production Planning & streamlining of supply chain management helps us to
reduce the FG inventory.

6. Increase in Inventories of 138.65 % as compare to last year due to

maintaining stock to produce the Different SKU (Stock keeping unit) as & when
required.

7. Debtors are reduced by approx. 46.83 % as compare to previous year

showing realization mainly of Wheat Bran sales

8. Security deposit paid to Electricity department & Gas agency

9. Advance payment on Non capital items to various transporters & also for the
GAIL to procure the propane gas which could be adjusted by preparing GRN's
at the time of receiving the material.

10. Advance Capital is constantly same as compare to previous year.

11. Current asset is increased by 45.33 % due to maintaining High Value

Inventory in Engg Stores & Raw Material & Advance payment to various
Transporters & keeping the Fuel inventory.

12. CL is increased due to various major components i.e. Retention amount,

Entry tax, primary freight & increase in statutory dues liability etc. & other
salary factors also increases the CL.

Working Capital Analysis:-

The management of Britannia has taken effective production planning to control

the increased Working capital by effective Planning by reducing the Inventory
holding cost & dispatch of FG as per the requirement.
And on other side rise in Working Capital should maintain such amount of
working capital for day to day expense which will be helpful for smooth running
of our company.
The major components of gross working capital include stocks (raw materials,
work-in-progress and finished goods), debtors, cash and bank balances.

FUNDS FLOW STATEMENT

BRITANNIA INDUSTRIES LIMITED, RUDRAPUR

FUND FLOW STATEMENT FOR THE YEAR 2008-09

SOURCES: AMOUNT

Retained earning 202,143,509.00

Loss From Operations 251,829,227.41

453,972,736.41

APPLICATION: AMOUNT

Increase In Working
Capital 68,005,927.26
Purchase of assets &
CWIP 59,023,917.72
Business Area clearing
a/c 326,942,891.43

453,972,736.41

-
 CONCLUSION

It can be concluded that in the fiercely competitive FMCG

market with regional players striking so hard at BILs
market share the company has not made any compromise
with quality, systems and practices in spite of feeling the
pinch in its profitability not only due to competition but also
because being an agro based industry and because of the
seasonality and unpredictability in the availability and price
of one of its major raw material Maida.
The company is doing well in terms of its marketing
approach and the financials of the company seem to be
healthy as of now.