BALANCE SHEET

Britannia Industries Ltd (BRIT IN) - Standardized

In Millions of INR except Per Share FY 2016 FY 2017

12 Months Ending 03/31/2016 03/31/2017
Total Assets
+ Cash, Cash Equivalents & STI 3,797.8 1,359.1
+ Cash & Cash Equivalents 228.2 501.8
+ ST Investments 3,569.6 857.3
+ Accounts & Notes Receiv 1,068.8 1,264.1
+ Accounts Receivable, Net 1,068.8 1,264.1
+ Notes Receivable, Net 0.0 0.0
+ Inventories 3,842.0 6,026.1
+ Raw Materials 1,297.4 2,806.5
+ Work In Process 2.8 18.1
+ Finished Goods 1,903.0 2,403.3
+ Other Inventory 638.8 798.2
+ Other ST Assets 5,613.7 11,399.5
+ Prepaid Expenses 552.3 2,403.4
+ Derivative & Hedging Assets 0.0 0.0
+ Misc ST Assets 5,061.4 8,996.1
Total Current Assets 14,322.3 20,048.8
+ Property, Plant & Equip, Net 7,029.7 8,422.4
+ Property, Plant & Equip 7,792.9 9,851.3
- Accumulated Depreciation 763.2 1,428.9
+ LT Investments & Receivables 5,577.2 5,082.8
+ LT Investments 5,577.2 5,082.8
+ Other LT Assets 4,070.5 3,407.4
+ Total Intangible Assets 133.2 116.0
+ Goodwill 0.0 0.0
+ Other Intangible Assets 133.2 116.0
+ Deferred Tax Assets 237.0 64.3
+ Derivative & Hedging Assets 0.0 —
+ Investments in Affiliates 66.5 211.5
+ Misc LT Assets 3,633.8 3,015.6
Total Noncurrent Assets 16,677.4 16,912.6
Total Assets 30,999.7 36,961.4

Liabilities & Shareholders' Equity

+ Payables & Accruals 7,270.3 7,351.0
+ Accounts Payable 6,447.2 6,438.2
+ Accrued Taxes 370.7 418.6
+ Interest & Dividends Payable 45.9 51.7
+ Other Payables & Accruals 406.5 442.5
+ ST Debt 1.9 1.8
 + ST Borrowings 0.0 0.0
+ ST Capital Leases 1.9 1.8
+ Current Portion of LT Debt 0.0 0.0
+ Other ST Liabilities 3,329.9 3,541.4
+ Deferred Revenue 150.1 106.0
+ Derivatives & Hedging 0.0 0.0
+ Misc ST Liabilities 3,179.8 3,435.4
Total Current Liabilities 10,602.1 10,894.2
+ LT Debt 4.9 4.4
+ LT Borrowings 0.0 0.0
+ LT Capital Leases 4.9 4.4
+ Other LT Liabilities 232.4 243.0
+ Accrued Liabilities 0.0 0.0
+ Deferred Revenue 0.0 0.0
+ Deferred Tax Liabilities — —
+ Derivatives & Hedging 0.0 0.0
+ Misc LT Liabilities 232.4 243.0
Total Noncurrent Liabilities 237.3 247.4
Total Liabilities 10,839.4 11,141.6
+ Preferred Equity and Hybrid Capital 0.0 0.0
+ Share Capital & APIC 465.1 540.0
+ Common Stock 240.0 240.0
+ Additional Paid in Capital 225.1 300.0
- Treasury Stock 0.0 0.0
+ Retained Earnings 15,093.4 19,798.6
+ Other Equity 4,601.80 5,481.20
Equity Before Minority Interest 20,160.3 25,819.8
+ Minority/Non Controlling Interest 0.0 0.0
Total Equity 20,160.3 25,819.8
Total Liabilities & Equity 30,999.7 36,961.4

Reference Items
Accounting Standard IN GAAP IN GAAP
Shares Outstanding 240.0 240.0
Number of Treasury Shares 0.0 0.0
Pension Obligations 0.0 0.0
Future Minimum Operating Lease Obligations 0.0 0.0
Capital Leases - Total 6.8 6.2
Percent Of Foreign Ownership 18.51 —
Number Of Shareholders 77,882.00 80,076.00
Options Granted During Period 0.2 0.2
Options Outstanding at Period End 0.2 0.3
Net Debt -3,791.0 -1,352.9
Net Debt to Equity -18.80 -5.24
Tangible Common Equity Ratio 64.88 69.76
Current Ratio 1.35 1.84
Cash Conversion Cycle -16.22 -3.58
Number of Employees 3,027.00 3,206.00
Source: Bloomberg

Britannia Industries Ltd (BRIT IN)

In Millions of INR except Per Share FY 2017 FY 2018
12 Months Ending 03/31/2017 03/31/2018

Purchase of Raw material 67,102.50 71,812.60

Add: Opening stock of Raw material 1,297.4 2,806.5
Less: Closing Stock of Raw material 2,806.5 2,865.0

RAW MATERIAL CONSUMED*4 65,593.40 71,754.10

ADD: Manufacturing Expenses
Direct Labour
Depreciation 964.3 1,197.6
Other Manufacturing Expenses*2 261 267
TOTAL COST 66,819.10 73,218.50
Add: Opening WIP Inventory 2.8 18.1
Less: Closing WIP Inventory 18.1 6.7
COST OF PRODUCTION 66,803.80 73,229.90
Add: Opening Finished Goods Inventory 1,903.0 2,403.3
Less: Closing Finished Goods Inventory 2,403.3 2,332.8
COST OF GOODS SOLD 66,803.80 73,229.90
ADD: S&D, Admin. Expenses

Selling & Distribution Expenses*1 3,249.8 3,459.4

Administrative Expenses*3 2,980.50 3,455.50
COST OF SALES 73,034.10 80,144.80
SALES 83,115.3 92,059.3

FY 2017 FY 2018
03/31/2017 03/31/2018

Raw Material Conversion Period (RMCP) 15.4030740898 14

 (RM Inventory/Raw Material Consumption per day)

WIP Conversion Period (WIPCP) 0.0975393615 0.03

(WIP Inventory/ Cost of Production per day)

Finshed Goods Conversion Period (FGCP) 12.95 11

(Finished Goods Inventory/Cost of Goods sold per day)

INVENTORY CONVERSION PERIOD (ICP) 28.4517928752 26

(RMCP+WIPCP+FGCP)

DEBTORS CONVERSION PERIOD (DCP) 5 9

(Debtors/Credit Sales per day)
GROSS OPERATING CYCLE (GOC) 34 35
(ICP+DCP)

CREDITORS DEFERRAL PERIOD (CDP) 39 53

(Creditors/ Credit Purchases per day)

NET OPERATING CYCLE (NOC) -6 -18

(GOC-CDP)

FINAL Words

britannia seems to be improving in inventory management and

payable management over the last two financial years. Only
concern area is debtors management and a better and quicker
collectrion from customers which needs deployment of apt and
corrective stratgeies
 INCOME STATEMENT
Britannia Industries Ltd (BRIT IN) - Adjusted

FY 2018 In Millions of INR except Per Share FY 2017 FY 2018

03/31/2018 12 Months Ending 3/31/2017 03/31/2018
Revenue 83,115.3 92,059.3
8,288.3 + Sales & Services Revenue 83,115.3 92,059.3
933.5 + Other Operating Income 1,028.4 981.3
7,354.8 - Operating Expenses 73,049.4 80,133.4
2,303.2 + Selling & Marketing 3,220.7 3,454.3
2,303.2 + Research & Development 261.4 266.8
0.0 + Depreciation & Amortization 964.3 1,197.6
5,945.8 + Prov For Doubtful Accts 29.1 5.1
2,865.0 + Other Operating Expense 68,573.9 75,209.6
6.7 Operating Income (Loss) 11,094.3 12,907.2
2,332.8 - Non-Operating (Income) Loss -1,434.4 -1,064.5
741.3 + Interest Expense, Net -927.9 -1,028.1
11,137.9 + Interest Expense 0.7 1.6
1,759.5 - Interest Income 928.6 1,029.7
0.0 + Other Investment (Inc) Loss -0.2 0.0
9,378.4 + Foreign Exch (Gain) Loss 7.5 -28.7
27,675.2 + Other Non-Op (Income) Loss -513.8 -7.7
12,085.9 Pretax Income (Loss), Adjusted 12,528.7 13,971.7
14,973.5 - Abnormal Losses (Gains) 17.1 -480.3
2,887.6 + Disposal of Assets 17.1 -4.5
4,505.4 + Asset Write-Down — —
4,505.4 + Legal Settlement — —
2,006.5 + Sale of Investments — -475.8
79.7 + Unrealized Investments — —
0.0 + Other Abnormal Items — —
79.7 Pretax Income (Loss), GAAP 12,511.6 14,452.0
86.8 - Income Tax Expense (Benefit) 4,074.7 4,973.1
— + Current Income Tax 3,902.0 4,995.6
151.0 + Deferred Income Tax 172.7 -22.5
1,689.0 + Tax Allowance/Credit — —
18,597.8 Income (Loss) from Cont Ops 8,436.9 9,478.9
46,273.0 - Net Extraordinary Losses (Gains) 0.0 0.0
+ Discontinued Operations 0.0 0.0
+ XO & Accounting Changes 0.0 0.0
10,497.9 Income (Loss) Incl. MI 8,436.9 9,478.9
8,663.6 - Minority Interest 0.0 0.0
542.3 Net Income, GAAP 8,436.9 9,478.9
53.4 - Preferred Dividends 0.0 0.0
1,238.6 - Other Adjustments 0.0 0.0
92.1 Net Income Avail to Common, GAAP 8,436.9 9,478.9
 88.1
2.0 Net Income Avail to Common, Adj 8,448.9 9,142.7
2.0 Net Abnormal Losses (Gains) 12.0 -336.2
3,070.3 Net Extraordinary Losses (Gains) 0.0 0.0
47.3
0.0 Basic Weighted Avg Shares 240.0 240.1
3,023.0 Basic EPS, GAAP 35.16 39.48
13,660.3 Basic EPS from Cont Ops 35.16 39.48
3.0 Basic EPS from Cont Ops, Adjusted 35.21 38.08
0.0
3.0 Diluted Weighted Avg Shares 240.0 240.2
256.9 Diluted EPS, GAAP 35.15 39.46
0.0 Diluted EPS from Cont Ops 35.15 39.46
0.0 Diluted EPS from Cont Ops, Adjusted 35.20 38.06
—
0.0 Reference Items
256.9 Accounting Standard IN GAAP IN GAAP
259.9 EBITDA 12,058.6 14,104.8
13,920.2 EBITDA Margin (T12M) 14.51 15.32
0.0 EBITA 11,138.7 12,949.3
721.8 EBIT 11,094.3 12,907.2
240.1 Operating Margin 13.35 14.02
481.7 Profit Margin 10.17 9.93
0.0 Sales per Employee ### 24,264,443.86
25,150.5 Dividends per Share 11.00 12.50
6,480.50 Total Cash Common Dividends 2,640.0 3,179.1
32,352.8 Capitalized Interest Expense — —
0.0 Personnel Expenses 2,416.8 2,948.7 it generaaly categorise
32,352.8 Depreciation Expense 919.9 1,155.5
46,273.0 Rental Expense 563.7 506.8 it generaaly categorise
Source: Bloomberg

IN GAAP
240.1
0.0
0.0
0.0
5.0
—
82,761.00
0.3
0.4
-8,193.2
-25.32
69.87
 2.03
-2.88
3,794.00

*4.It is assumed as residual of other

operating expense over personnel and
rental expense.

*2 it includesd R&D expenses

*1.It includes selling & Marketing expense

and provison for doubtful accounts.
*3 it includes personnel and rental expenses

Interpretation/Comments

Though marginally RMCP has

reduced hinting a better raw
material handling and
*5.The material inventor, WIP and FG improved procurement
inventory is taken at closing figure for the procedure.
Days year, rather than average of all years.
 Simillar result is found in WIP
conversion meaning a better
production procedure and
time management
Days

Further the reduction in FG

conversion by two whole days
hints a better and quicker
Days sales.

Hence the improved RM,WIP

and Fg conversion has
resulted into a 3 day savings
in conversion of investories
into sales.Hence the inventory
management and sales efforts
can be considered as getting
better from FY 2017 too FY
Days 2018.

The same improvement is

*6. the debtors are also taken at the year
end figures rather than the average for all
the years and credit sale is taken as equal
Days to sales revenue.
however missing in case of
conversion of debtors cash,
where the company takes 4
more days (almost double)
than the previous year . It
means a slower collection of
cash from the customers and
its undesirable. In fact the
entire savings in ICP exceeded
in the extra period taken from
DCP.

Days
*7. creditors are also taken at year end
figures rather than aat average of all years
and all purchases of raw material is
Days considered as credit purchases.
Days
Note:
All green cells in interpretation comment
shows poitive signs and red negative in
terms of company performance.
The GOC suggests that the
time taken from acquisition of
resources to cash conversion
has diluted marginally by 1
day between FY17 to FY18.
The efficiency of inventory
management has been
counter positioned by the
inefficiency at the debtors
management.
But the only respite is the
ability of the company to
defer the payment to the
creditors by as musch as 14
days.
As a result the NOC or CCC
also reduces from -5 to -18
days. This hints the companyt
manages to receive cash from
customers 18 days prior to the
payment date of the creditors.
it generaaly categorise as admin expenses

it generaaly categorise as admin expenses

Britannia Industries Ltd (BRIT IN) - Standardized
In Millions of INR except Per Share FY 2017 FY 2018
12 Months Ending 03/31/2017 03/31/2018

Purchase of Raw material

Add: Opening stock of Raw material
Less: Closing Stock of Raw material
RAW MATERIAL CONSUMED
ADD: Manufacturing Expenses
Direct Labour
Depreciation
Other Manufacturing Expenses
TOTAL COST
Add: Opening WIP Inventory
Less: Closing WIP Inventory
COST OF PRODUCTION
Add: Opening Finished Goods Inventory
Less: Closing Finished Goods Inventory
COST OF GOODS SOLD
ADD: S&D, Admin. Expenses
Selling & Distribution Expenses
Administrative Expenses
COST OF SALES
SALES

Raw Material Conversion Period (RMCP)

(RM Inventory/Raw Material Consumption per day)
WIP Conversion Period (WIPCP)
(WIP Inventory/ Cost of Production per day)
Finshed Goods Conversion Period (FGCP)
(Finished Goods Inventory/Cost of Goods sold per day)
INVENTORY CONVERSION PERIOD (ICP)
(RMCP+WIPCP+FGCP)
DEBTORS CONVERSION PERIOD (DCP)
(Debtors/Credit Sales per day)
GROSS OPERATING CYCLE (GOC)
(ICP+DCP)
CREDITORS DEFERRAL PERIOD (CDP)
(Creditors/ Credit Purchases per day)
NET OPERATING CYCLE (NOC)
(GOC-CDP)