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BOARD OF DIRECTORS
CHAIRMAN :
Nusli N Wadia
MANAGING DIRECTOR :
Vinita Bali
DIRECTORS :
Keki Dadiseth
Avijith Deb
A K Hirjee
Nimesh N Kampani
S S Kelkar
Pratap Khanna
Ajai Puri
Jeh N Wadia
COMPANY SECRETARY :
V Madan
AUDITORS :
Lovelock & Lewes
Chartered Accountants
5th Floor, Tower D, The Millenia
1&2 Murphy Road, Ulsoor
Bangalore - 560 008
BANKERS :
ABN Amro Bank N.V.
Axis Bank Limited
Bank of America
Citibank N.V.
HDFC Bank Limited
ICICI Bank Limited
Indian Bank
Standard Chartered Bank
State Bank of India
The Hongkong and Shanghai Banking Corporation Limited
CONTENTS
Schedules to Consolidated Balance Sheet and Profit and Loss Account ......................................................74
FINANCIAL HIGHLIGHTS
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Britannia Annual Report 2008-09
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Britannia Annual Report 2008-09
launch of brands and packages, conveniently priced includes turnover of Strategic Food International Co.
at Rs. 5/- for personal consumption. LLC, Dubai (SFIC) and Al Sallan Food Industries
Company SAOG, Oman (Al Sallan) for 15 months in
Once again, consumers voted ‘brand’ Britannia among view of change in the accounting year from January
the Top 10 Most Trusted Brands across all categories – December to April – March. Turnover grew by
for the 5th successive year in an independent survey 20.19 % on a like to like basis.
conducted by AC Nielsen and The Economic Times.
Britannia was rated as the 2nd Most Trusted Food
Brand and the 7th Most Trusted Brand across all The Consolidated Net Profit of the Company
categories in 2008. The value of the Britannia brand for the year ended 31 March 2009 was Rs. 1,515
was also recognized internationally with Time MM compared to Rs. 1,774 MM in the previous
Magazine in its issue of 17 August 2008, quoting year. Profit was impacted by losses in Daily Bread
the collaborative partnerships that Britannia has operations in Hyderabad and Delhi, mainly due to
created in the nutrition space, as one of 8 examples a slow down in food retailing. Operations in these
of creative capitalism from around the world. locations were discontinued in December 2008, with
Bangalore focusing on consolidation of operations &
cost effectiveness to generate growth. Additionally,
the Middle East business faced severe cost challenges
Your Company extended its international footprint due to exorbitant inflation in all key commodities
with exports more than doubling to Rs. 555 MM. like Flour, Sugar & Oil, which resulted in lower
Further, operations in Sri Lanka commenced with profit compared to the previous year.
a select range of Power Brands, which have had a
positive response from both consumers & trade.
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Britannia Annual Report 2008-09
holds the entire equity and preference capital of Company the advantage of improving its customer
BNZF. service, resulting in an overall share increase in the
key markets of UAE from 6.0% to 9.1% & Oman
Going forward, dairy products will play a more from 7.8% to 11.6%. Additionally, in order to gain
dominant role in the growth of your Company. operational efficiencies in the supply chain, the
Company consolidated most of its manufacturing
Daily Bread Gourmet Foods (India) Private Limited operations in Sohar.
(Daily Bread)
Daily Bread is engaged in the business of premium Investment and Holding Companies
bakery products. The Company registered a growth
M/s Boribunder Finance and Investments Private
of 38% in 2008-09 with sales of Rs. 163 MM and
Limited (Boribunder), M/s Flora Investments
incurred a Net Loss of Rs. 248 MM, mainly due
Company Private Limited (Flora) and M/s Gilt Edge
to the relatively high infrastructure investment in
Finance and Investments Private Limited (Gilt Edge)
Hyderabad and Delhi operations, at a time when
form the Investment Associates of your Company.
the retail sector began to slow down. Consequently,
M/s Boribunder Finance and Investments Private
in December 2008, Daily Bread discontinued its
Limited (Boribunder) is a wholly owned subsidiary
operations in these locations with a focus on growing
of your Company.
its business in Bangalore where the brand has been
available for 6 years and is well established.
The combined revenue and loss of investment
companies for the year ended 31 March 2009 was
Rs. 1.42 MM and Rs 1.27 MM respectively. The losses
Daily Bread has added new institutional customers in
are mainly due to reduction in service fee receipts.
Bangalore, developed a franchisee model to expand
its footprint and focused on cost effectiveness across
Further, pursuant to Section 4 of the Companies
the entire value chain. With these initiatives, the
Act 1956, the following companies engaged in
Daily Bread business in Bangalore is expected to
manufacture of biscuits at various locations are also
break even at the EBITDA level this year.
deemed to be subsidiaries of your Company. The
Gross Income and Net Profit of the said subsidiaries
In April 2009 your Company acquired the 25% during 2008-09 are as under:
stake held by the original promoters as a means to Rs. Million
streamline and focus operations.
Name of Subsidiary Gross Net Profit
Strategic Food International Co. LLC, Dubai (SFIC) Income/ (Loss)
Your Company holds 70% stake in SFIC. For the 1102.47
International Bakery
period ended 31 March 2009, SFIC recorded a Products Limited, TC
turnover of UAE Dirhams 129.90 MM (Rs. 1,578 Balam, Tamil Nadu
MM) and a Net Loss of UAE Dirhams 22.17 MM (Rs. J B Mangharam Foods
269 MM). 132 (3.90)
Private Limited, Gwalior
Manna Foods Private
During the year the business faced severe cost Limited, Bangalore 30 (0.41)
challenges due to exorbitant inflation in the cost of Ganges Vally Foods Private
all key commodities like flour, sugar & oil, which Limited, Kolkata 96 0.31
resulted in lowering Operating Profit compared to Sunrise Biscuit Company
the previous year. Private Limited, Guwahati
341 (0.35)
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Britannia Annual Report 2008-09
6. MANUFACTURING OPERATIONS
5. BRANDS
Your Company believes that its business is brands. The emphasis in manufacturing continued to be on
Therefore, the right and adequate investment in creating a responsive and cost effective supply chain.
brands is a key priority. This investment includes A large number of initiatives were rolled out to
everything that the Company does to gain consumer improve productivity through effective application of
insights and convert those into meaningful and technology and improved manufacturing processes
differentiated propositions that delight & satisfy as well as switching to lower cost energy options. The
consumers and create value for all other stakeholders. emphasis on recycling energy resulted in reducing
During the year, investment in Advertisement & baking fuel consumption by approximately 13%.
Sales Promotion increased by 17.5% and together
with the renovation & innovation efforts across the
Technology improvement projects were replicated,
portfolio, resulted in a healthy double digit growth
of 20.1%. following successful pilots, across locations to secure
cost and quality advantages.
A large number of initiatives were taken to fortify Your Company believes in continually striving
the health and nutrition aspect of the Company’s for a higher and better level of quality not just in
portfolio and in that respect, as stated last year, your its products and packs, but also in its operations.
Company made the responsible decision of removing A key plank of quality assurance is the ongoing
transfat from its entire portfolio of biscuits, the only quality training that is imparted across the system to
Company in India to have done this. Consequently, employees, contract packers and vendors that your
a total of 8,500 T of transfat was removed. Company deals with on an ongoing basis.
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Britannia Annual Report 2008-09
The thrust on grinding quality into everything your Pursuant to the direction of the Madras High Court,
Company does, now comprehensively covers both the CIT-Kolkata passed orders rejecting the deeds of
recurring as well as new processes. In addition to variation submitted in May 2005 by the Company's
quality measured in the factory, a ‘Consumer Quality Pension Funds on technical grounds. The Company
Index’ was put in place to understand ‘delivered has preferred an appeal before the Central Board of
quality’ to consumers. Direct Taxes, New Delhi, challenging the orders of
the CIT.
8. INFORMATION TECHNOLOGY
Your Company has extensively used its IT A suit was filed by the Britannia Industries Limited
infrastructure and systems to generate timely, Pensioners Welfare Association in the Court of
granular and actionable information. This spans the City Civil & Sessions Judge, Bangalore, where the
entire gamut of the value chain - from procurement Hon'ble Court passed interim orders on 1 January
to final sale. In this context, your Company 2009 and 10 February 2009 directing the Funds to
strengthened its market information systems, pay pension to the members in accordance with the
enabling decisive and quick action. Investment in IT computation made and submitted by the Pension
therefore increased over 20%. Funds to the Court. This computation was on a
defined contribution basis, and is consistent with
the pension offered by the Pension Funds to eligible
employees at the time of their retirement/exit. The
9. ENVIRONMENT AND SAFETY
Funds have been complying with the said order.
The drive to reduce energy consumption through
process improvements and recycling was amplified
during the year. Several initiatives were undertaken
to ensure optimum consumption of energy and The Britannia Industries Limited Pensioners Welfare
thereby minimize emission levels. Association had also filed a writ petition in the
Hon'ble Calcutta High Court seeking various reliefs
Environmental friendly fuels were used in the relating, inter alia, to their pension benefits. In April
manufacturing process across several locations. With 2009, the association withdrew this case.
the potential extension of the gas grid across the
country, your Company will look for opportunities
to enhance the use of such fuels.. The above matters have been dealt with in note
29 of Schedule T to the Accounts , which are self
explanatory.
10. CORPORATE SOCIAL RESPONSIBILITY
Building on the success of the GAIN and Naandi 12. ENERGY, TECHNOLOGY AND FOREIGN
Foundationpartnerships,yourCompany EXCHANGE
collaborated with other NGO’s like the ‘Navjyoti
Foundation’ to supply iron fortified Tiger biscuits Details of energy conservation, technology
for children in order to supplement their nutrition absorption, foreign exchange earnings and outgoings
needs. It also continued to partner with the UNWFP in accordance with the provisions of clause (e) of
(United Nations World Food Program) to supply sub-section (1) of Section 217 of the Companies Act,
customized biscuits to “at risk” populations across 1956, read with the Companies (Disclosure of the
countries. Particulars in the Report of Board of Directors) Rules,
1988, are given as an annexure to the Directors’
Report.
11. PENSION
In respect of the notice received from the 13. SETTLEMENT WITH GROUPE DANONE
Commissioner of Income Tax (CIT), Kolkata in April
2007, to the Company's Covenanted Staff Pension Your Company and Groupe Danone signed a
Fund, asking it to show cause, why recognition Settlement Agreement on 14 April 2009 in respect
granted to the Fund should not be withdrawn, for of “TIGER” litigation pending in the High Courts of
refunding in the year 2004, the excess contribution Singapore and Kuala Lumpur, for the period upto
of Rs.121.199 MM received by it in earlier years, the 30 November 2007, when Groupe Danone sold its
Hon'ble Supreme Court of India has directed the biscuit business to Kraft Inc. USA. Currently, your
Single Judge of the Hon'ble Calcutta High Court to Company is pursuing the matter with Kraft Inc. USA
hear the same. for the period December 2007 onwards.
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Britannia Annual Report 2008-09
14. GROUPE DANONE SHAREHOLDING However, as per the provisions of Section 219(1) (b)
(iv) of the Act, the report and accounts are being sent,
M/s Leila Lands Limited, Mauritius, a subsidiary of excluding the statement containing the particulars
The Bombay Burmah Trading Corporation Limited to be provided under Section 217(2A) of the Act.
(Bombay Burmah), has on 14 April 2009 acquired Any member interested in obtaining such particulars
100% of Britannia Brands Limited, UK from Danone may inspect the same at the Registered Office of the
Asia Pte Limited, Singapore resulting in their Company or write to the Company Secretary for a
indirect shareholding in Britannia Industries Limited copy thereof.
increasing to 50.96%. Consequently, your Company
has now become a subsidiary of The Bombay Burmah
Trading Corporation Limited.
18. EMPLOYEE STOCK OPTION SCHEME
Your Board appointed Dr. Ajai Puri as a Director The Company’s Auditors, M/s. Lovelock and Lewes,
in the casual vacancy caused by the resignation of have certified that the Scheme has been implemented
Mr. Philippe Loic Jacob, at its meeting on 30 April in accordance with the SEBI Guidelines and the
2009. Dr. Ajai Puri has vast experience in the Food resolution passed by the members at the Annual
Industry especially in Research & Development General Meeting held on 28 July 2008.
and Quality Assurance, with specialist experience
in nutrition having worked in several leading food
and beverage multinationals. Dr. Puri has also been Requisite disclose in respect of the ESOS in terms of
appointed Chairman of the Innovation Committee of Guideline 12 of the SEBI Stock Option Guidelines,
the Board which will oversee product & technology has been provided in Annexure which forms part of
innovation in your Company. this report.
19. AUDITORS
In accordance with the provisions of the Companies M/s. Lovelock & Lewes retire in accordance with
Act, 1956 and the Articles of Association of the the provisions of the Companies Act, 1956. They
Company, Mr. A K Hirjee, Mr. Jeh N Wadia and have indicated their willingness to continue in office
Mr. Keki Dadiseth, Directors, retire by rotation at and are recommended for reappointment as the
the forthcoming Annual General Meeting and are Company’s Auditors for the ensuing year.
eligible for reappointment.
20. DIRECTORS’ RESPONSIBILITY
17. PARTICULARS OF EMPLOYEES
Pursuant to sub-section (2AA) of Section 217 of
Information as per Section 217 (2A) of the Companies the Companies Act, 1956, your Directors, based on
Act, 1956, read with the Companies (Particulars of representations from the Operating Management,
Employees) Rules, 1975, forms part of this Report. confirm that:
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Britannia Annual Report 2008-09
i) In the preparation of annual accounts, the assets of the Company and for preventing and
applicable accounting standards have been detecting fraud and other irregularities;
followed and there are no material departures;
iv) They have prepared the annual accounts on a
ii) They have, in selection of the accounting going concern basis
policies, consulted the statutory auditors and
applied these policies consistently, making 21. ACKNOWLEDGEMENTS
judgments and estimates that are reasonable
and prudent, so as to give a true and fair view The Directors would like to thank all stakeholders,
of the state of affairs of the Company as on namely, customers, shareholders, dealers, suppliers,
31 March 2009 and of the profit of the Company bankers, employees and all other business associates
for the year ended 31 March 2009; for the continuous support given by them to the
Company and its management.
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Britannia Annual Report 2008-09
ii) Baking fuel consumption declined from 21.92 Own generation of electricity was lower than the previous
therms / mt to 19.12 therms/ mt, resulting in a year due to Uttarakhand factory relying more on purchase
12.77% reduction over the previous year. of electricity which is cheaper than own generation.
Further, the suspension of operations at Chennai also
Form ‘A’ contributed to lower own generation.
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Britannia Annual Report 2008-09
energy saving measures initiated, electricity and baking iv) Focused thrust on enhancement of process
fuel consumption for biscuits per tonne was lower in efficiency and product- consistency.
2008-09 compared with the previous year.
v) Basic research in the area of nutrition, analytical
techniques, ingredients, packaging materials,
Consumption of electricity per tonne of biscuits was
process technology and food safety.
lower in 2008-09 as a result of various measures taken to
conserve electricity, including reduction in lighting load
vi) Partnership with leading NGO’s for delivering
by replacement with energy efficient bulbs etc. specially formulated and fortified products.
Technology absorption, adaptation and innovation 2. Benefits delivered as a result of above R&D
initiatives :
(a) Efforts in brief made towards absorption, adaptation
and innovation: i) New products launched :
iii) Introduction of new ingredients / formulations, Two Indiapack’ 08 packaging awards for Treat
consumer winning claims and micro-nutrient and Pure Magic range.
fortification while maintaining the delightful Asiastar ’08 packaging award for the Pure Magic
taste for all products. carton range.
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Britannia Annual Report 2008-09
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Britannia Annual Report 2008-09
Disclosure pursuant to the provisions of SEBI (Employees Stock Option Scheme and Employee Stock Purchase
Scheme) Guidelines, 1999
(b) The pricing formula Closing market price as at close of 28 October 2008 (date
of grant 29 October 2008).
Rs. 1125.30
(i) Senior managerial personnel 15,000 issued to the Managing Director Ms. Vinita Bali
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Britannia Annual Report 2008-09
(i) Method of calculating employee Compensation The Company has calculated the employee compensation
cost.cost using the intrinsic value method of accounting for
the Options granted under the Scheme.
(m) Weighted-average exercise prices and weighted-average Weighted average Exercise Price : Rs. 1125.30
fair values of options shall be disclosed separately for
Weighted average Fair Value of Option : Rs.251 per
options whose exercise price either equals or exceeds
option
(n)or is less than
Description ofthe market
method andprice of the stock.
significant assumptions used
Black and Scholes Model
during the year to estimate the fair values of options
i) risk – free interest rate 7.44%
AUDITORS’ CERTIFICATE
We have examined the records and documents maintained by the Company and based on the information and
explanations given to us and to the best of our knowledge and belief, we confirm that the Employee Stock Option
Scheme 2008 is approved by the members of the Company at its 89th Annual General Meeting, held on July 28, 2008
and is in accordance with the applicable provisions of Securities Exchange Board of India (Employee Stock Option
Scheme and Employee Stock Purchase Scheme) Guidelines, 1999.
This certificate is issued at the request of the Company in accordance with clause 14 of Securities and Exchange Board
of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 and should not be
used by any other person or for any other purpose, as such use may not be appropriate.
Usha A Narayanan
Place: Mumbai Partner
Date : May 27, 2009 Membership No.23997
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Britannia Annual Report 2008-09
A) INDUSTRY STRUCTURE AND DEVELOPMENT robust supply chain. These will be reinforced further
by integrating manufacturing and logistics and
For biscuits, overall market growth was good, despite
industrializing the set of manufacturing practices &
the economic downturn - with a slowdown towards
technologies we have built to date.
the second half - from 14.4% sequential growth in
the 1st half to 11.7% in the 2nd half (A C Nielsen).
The trade environment witnessed significant change C) SEGMENT INFORMATION
through the course of the year with modern trade
in particular facing acute cash flow pressure, cutting The primary business segment of the Company
back on outlets and dramatically reducing their rate is foods mainly comprising (i) bakery products
of growth. Against this backdrop, your Company - biscuits, bread, cakes & toast, and (ii) dairy
estimates moderate growth in 2009-10 for bakery. products.
D) OUTLOOK
Competition in biscuits is expected to intensify
further with a likely resurgence of a large number The current economic scenario of slowdown in GDP
of local players as commodity prices become less growth & consumer spending indicates a relatively
volatile. Equally, there are likely to be new entries lower growth across most sectors. We expect a
from other International players, who see India as a moderate growth in the bakery business and a
“growth market”. moderate commodity inflation scenario.
Although, overall inflationary pressure in Our circle of competition has widened as markets
commodities softened towards the later half of the morph across categories - we compete not only within
year, certain commodities like sugar are already biscuits but also interact with snacks, beverages,
showing an increase of over 50%. Commodity sugar & chocolate confectionery and health drinks.
inflation is expected to be moderate but volatile. The These categories continue to witness significant
procurement strategy therefore will be guided by investments from a powerful array of players. In
assessment of prices, risk & volatility. biscuits, competition is expected to intensify further
with the resurgence of local & regional players.
B) BUSINESS STRATEGY
The Company’s core strategy will be to strengthen Your Company will continue to drive profitable
current brands through product design, delivery & growth in an extremely competitive environment
mix and introduce new & differentiated, products. focusing on customers, consumers and driving cost
Given the current economic environment, the focus efficiencies.
on understanding consumers and meeting their
needs will be enhanced to drive off-take. Nutrition
efforts of the Company will be further strengthened E) FINANCIAL AND OPERATIONAL
by offering more value to consumers through healthy PERFORMANCE
options at affordable price points.
Net Sales increased 20.4% to Rs. 31,122 MM driven
by volume, mix and better realization. The Bread,
Cake and Toast business tripled revenue in 3 years
The Company will continue to focus on channel
and crossed the Rs 3,500 MM mark in 2008-09.
initiatives to give a new edge to driving off-take at
Better realization and cost effectiveness measures
point of purchase, synergizing all levers including
offset the steep increase in commodities like
distribution, trade marketing, market activation and
wheat flour & sugar. Investment in marketing was
advertising. Britannia will continue to build the edge
sustained to support brands in an intense competitive
in trade channels through width & depth of reach,
environment. As a result of these initiatives, your
service quality, customer insight and executional
Company was able to increase operating profit by
excellence.
13.5% in a highly competitive and inflationary
commodity scenario.
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Britannia Annual Report 2008-09
The key financials are as under: The Company has a code of business conduct for all
employees and a clearly articulated and internalized
Rs. Million delegation of financial authority. These authority
levels are periodically reviewed by management and
2008-09 2007-08 modifications, if any, are submitted to the Audit
Gross Sales 31,429 26,170 Committee and Board for approval.
The Audit Committee also reviews the risk
Total Expenditure 28,990 23,919 management framework that is periodically
Profit before exceptional 2,531 2,245 updated.
items and tax
Exceptional items 206 (78) I) HUMAN RESOURCES AND INDUSTRIAL
RELATIONS
Profit before Tax 2,325 2,323
Income Tax (521) (413) Your Company’s philosophy is to create an open
and transparent organization, focused on people
Profit after Tax 1,804 1,910 and their capability, for delivering superior
performance. Several initiatives are undertaken to
F) OPPORTUNITIES AND THREATS build organizational and individual capabilities to
significantly enhance productivity for sustainable
Increased awareness of ‘Health & Wellness’ provides business results. These are supported by real time
an unique opportunity to build and strengthen sharing of information on people and Company
our brands like NutriChoice, Milk Bikis, Marie performance. In the current economic scenario, we
Gold & Tiger. Launch of new products fulfilling have prioritized a strong focus on higher productivity,
consumer needs better than available alternatives, which will come from improved clarity of role,
increase in width & depth of reach, service quality, removing blocks to performance and appropriate
commercializing the growing trend of ‘out-of-home’ reward mechanisms.
consumption, an efficient supply chain, and capable A Voluntary Retirement Scheme (VRS) was offered to
and committed employees, provide the growth the workmen at your Company’s factory at Chennai
impetus for the Company. and Kolkata.
As reported last year manufacturing operations at
the Chennai factory remain suspended from April
Intense national & local competition with the 2008.
possible entry of multinational companies in this The Industrial Tribunal nullified the permission
segment may present a challenge to your Company’s given by the Labour Commissioner for closure
growth plan. of Mumbai factory. Presently the matter is in the
Bombay High Court.
G) RISKS AND CONCERNS As of 31 March 2009, your Company had 1982
employees (including workmen) on its rolls.
The major risk faced by your Company is the
economic slowdown resulting in lower consumer
spending. In addition, inflation in food commodities
could significantly impact business profitability.
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Britannia Annual Report 2008-09
REPORT ON CORPORATE GOVERNANCE
1. COmPANy’s PhilOsOPhy ON COdE Of GOVERNANCE
Your Company considers good Corporate Governance a pre-requisite for meeting the needs and aspirations of
its shareholders and other stakeholders in the Company and firmly believes that the same could be achieved by
maintaining transparency in its dealings, creating robust policies and practices for key processes and systems with
clear accountability, integrity and the highest standard of regulatory compliance.
2. BOARd Of diRECTORs
The Board is headed by a Non-Executive Chairman, Mr. Nusli N Wadia, and comprises eminent persons with considerable
professional experience in diverse fields. Over two third of the Board consists of Non-Executive Directors.
As of 31 March 2009, the Board comprised 4 independent directors constituting 36.37% of the total Board strength.
The Company in its letter dated 30 March 2009, requested the Stock Exchanges, time upto 30 April 2009, to comply
with the requirement of at least one-half of the Board to consist of independent directors. As of 30 April 2009, the
Company had complied with the said requirement.
During the year 2008-09, four (4) Board Meetings were held, the dates of the meetings being 28 May 2008, 28 July
2008, 29 October 2008 and 29 January 2009. The maximum gap between any two board meetings held during the
year was not more than four (4) months.
The details of Composition of the Board, Directors attendance at the Board Meetings and at the last Annual General
Meeting, Outside Directorships and the Board Committee Memberships as at 31 March 2009 are tabulated hereunder:
No. of BoardWhether
No. ofNo. of
director Whether Promoter,Committee ofattended
Boardoutside
Executive/ Non-Executive/last AGmother Companies
meetings held on 28 director-independentin which a
Mr. Nusli N Wadia attended July 2008 ships held #member ##
Promoter & Non-Executive
Ms. Vinita Bali, 4Yes7-
Executive
Chairman 3 No 3 2
Managing Director
Non-Executive and 3
Mr. Keki Dadiseth 4 Yes 6
Independent (Chairman of 2)
Non-Executive and
Mr. Avijit Deb Independent 4 Yes 1 -
6
Mr. A K Hirjee Promoter & Non-Executive 4 Yes 5
(Chairman of 3)
Non-Executive and 2
Mr. Nimesh N Kampani 1 No 5 (Chairman of 1)
Independent
Mr. S S KelkarPromoter & Non-Executive 4
4 Yes 11
Non-Executive and
Mr. Pratap Khanna 2 Yes - -
Independent
Non-Executive and
Dr. Ajai Puri * NA NA - -
Independent 2 Yes 3 -
Mr. Jeh N WadiaPromoter & Non-Executive 2 Yes 1 -
Mr. Francois-Xavier Roger** Promoter & Non-Executive 1 No 2 1
Mr. Stephan Gerlich ~Promoter & Non-Executive 1 No - -
Mr. Philippe Loic Jacob ~ Promoter & Non-Executive
# Excludes alternate directorship and directorship in foreign companies, private companies and companies governed by
Section 25 of the Companies Act, 1956.
## Excludes Committees other than Audit Committee and Shareholder/ Investors Grievance Committee and Companies other
than public limited Companies.
* Dr. Ajai Puri was appointed as a Director in the casual vacancy caused by the resignation of Mr. Philippe Loic Jacob
effective 30 April 2009.
Mr. Francois-Xavier Roger resigned as Director effective 31 August 2008.
**
Mr. Stephen Gerlich and Mr. Philippe Loic Jacob resigned as directors effective 14 April 2009.
~
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Britannia Annual Report 2008-09
3. BOARd COmmiTTEEs
The Board has constituted the following Committees of Directors:
(a) Audit Committee:
The Audit Committee, as on 31 March 2009, comprised the following five Non-Executive Directors.
Mr. Nimesh N Kampani – Chairman of the Committee
Mr. Keki Dadiseth
Mr. Avijit Deb
Mr. A K Hirjee
Mr. Pratap Khanna
Mr. Keki Dadiseth was the Chairman of the Audit Committee from 28 May 2008 to 29 October 2008. Effective
29 October 2008 Mr. Nimesh N Kampani was reappointed as Chairman of the Audit Committee in place of
Mr. Keki Dadiseth.
The Chairman of the Committee Mr. Nimesh N Kampani is an Independent Director. Apart from Mr. Nimesh
N Kampani, the other Independent Directors are Mr. Keki Dadiseth, Mr. Avijit Deb and Mr. Pratap Khanna.
All the members of the Audit Committee are financially literate and Mr. Nimesh N Kampani, Mr. Keki Dadiseth
and Mr. A K Hirjee have financial management expertise. Mr. V Madan the Company Secretary is the Secretary
to the Audit Committee.
The role and terms of reference of the Audit Committee is in accordance with Clause 49 of the Listing Agreement
and Section 292A of the Companies Act, 1956. In brief, the role of Audit Committee includes review of Internal
Audit reports and Statutory Auditors’ report on Financial Statements, general interaction with Internal Auditors
and Statutory Auditors, selection, establishment and adherence to Accounting Policies, review of Financial
Statements both Quarterly and Annual before submission to the Board, review of Management Discussion and
Analysis, review of the performance of Statutory and Internal Auditors, review of risk assessment framework of
the Company and adequacy of Internal Control Systems.
The Audit Committee also reviews statement of related party transactions, management letters and the response
thereto by the management.
During the year 2008-09, the Audit Committee held four (4) meetings, the dates of meetings being 28 May
2008, 27 July 2008, 29 October 2008 and 29 January 2009.
The attendance of the members at the Audit Committee Meetings held during the year 2008-09 is as follows:
Mr. A K Hirjee4
Mr. Pratap Khanna2
Mr. Francois-Xavier Roger2
Mr. Francois-Xavier Roger was a member of the Audit Committee until he resigned from the Board effective 31
August 2008.
At the Annual General Meeting of the Company held on 28 July 2008, the then Chairman of the Audit
Committee, Mr. Keki Dadiseth was present.
The Managing Director, Chief Financial Officer, Internal Auditors, Statutory Auditors and other Executives as
considered appropriate, also attend the Audit Committee Meetings.
internal Audit and Control:
M/s. Deloitte Haskins & Sells, Chartered Accountants, are the internal auditors of the Company and their
internal audit plan and remuneration are approved by the Audit Committee. The reports and findings of the
internal auditor and the internal control system are periodically reviewed by the Audit Committee.
17
Britannia Annual Report 2008-09
Remuneration Policy:
managing director
Ms. Vinita Bali was appointed as Managing Director for a period of five years w.e.f 31 May 2006 by the Board
of Directors. The said appointment was approved by the shareholders at the Annual General Meeting held on
1 August 2006. Prior to her appointment as the Managing Director, Ms. Bali was the Manager of the Company
under the provisions of Sec. 387 of the Companies Act, 1956. The terms and conditions of appointment and
remuneration payable to the Managing Director were fixed by the Board of Directors of the Company and an
agreement dated 1 August 2006 was entered into between the Managing Director and the Company.
The details of remuneration paid to Ms. Vinita Bali for the year 2008-09 are as follows:
18
Britannia Annual Report 2008-09
Details of remuneration to Non-Executive Directors for the year 2008-09 are given below:
The commission amounts, as mentioned above, will be paid, subject to deduction of tax, after the adoption of
accounts for the year ended 31 March 2009 by the shareholders at the Annual General Meeting to be held on
31 August 2009. The Non-Executive Directors did not have any other pecuniary relationship or transactions
with the Company.
No member of the Board of Directors holds any shares of the Company, other than Mr. Nusli N Wadia,
Chairman and Mr. Pratap Khanna, Non-Executive Director, who hold 450 and 28,228 shares respectively. The
shareholders at the Annual General Meeting of the Company held on 28 July 2008 approved issue of Options to
the Senior Management (being permanent employees) and its Whole Time/Executive Directors of the Company
through an Employee Stock Option Scheme. The Remuneration/Compensation Committee of the Board at its
meeting held on 29 October 2008 approved the Employee Stock Option Scheme and granted 15,000 options to
Ms. Vinita Bali, Managing Director under the said scheme. Each option, upon exercise, will entitle the holder to
receive one equity share of the Company. The Exercise Price shall be Rs. 1,125.30 being the market price as at
the close of 28 October 2008 on the National Stock Exchange Limited. Compensation cost is calculated using
the intrinsic valuation method as defined in the SEBI Guidelines.
(c) share Transfer & shareholders’/ investors’ Grievance and Ethics/ Compliance Committee:
The Share Transfer & Shareholders’/ Investors’ Grievance and Ethics/ Compliance Committee as at 31 March
2009 comprised three (3) Non-Executive Directors, namely:
Mr. A K Hirjee - Chairman of the Committee
Mr. Nimesh N Kampani
Mr. S S Kelkar
The Committee:
(i) approves and monitors transfers, transmission, splitting, consolidation and rematerialisation of securities
and issue of duplicate share certificates by the Company;
(ii) looks into various issues relating to shareholders, including redressal of complaints relating to transfer of
shares, non-receipt of annual reports, dividends, etc.; and
(iii) ensures compliance of the Code of Conduct for Prevention of Insider Trading formulated by the Company
as per the Securities and Exchange Board of India Regulations.
The Committee, which generally meets twice a month, met 22 times during the year. Additionally the Committee
also transacted its business thrice by circulation on 5 June 2008, 19 June 2008 and 26 February 2009.
The Company has not delegated the powers to approve share transfers, etc., to any officer of the Company since
the Share Transfer & Shareholders’/ Investors’ Grievance and Ethics/ Compliance Committee generally meets
twice a month and the process of Share transfer is completed within the stipulated time.
Mr. V Madan, Company Secretary and Head of Legal is the Compliance Officer of the Company.
19
Britannia Annual Report 2008-09
The Company has generally attended to the investors’ grievances/ correspondence within a period of ten days
from the date of receipt of the same, except in cases that are constrained by disputes or legal impediments.
There are some pending cases relating to disputes over title to shares, in which the Company is made a party.
However, these cases are not material in nature.
Shareholders’ requests for transfer/ transmission of equity shares were effected within 15 days from the date of
receipt. There were no valid transfers pending for registration as of 31 March 2009.
The brief description of the terms of reference of the Investment Committee is to approve investments/
divestments of the funds of the Company within the limits prescribed by the Board from time to time.
During the year under review two (2) meetings of the investment Committee were held on 28 May 2008
and 23 September 2008.
The Nomination Committee comprises Mr. Nusli N Wadia, Chairman of the Committee and Mr. Nimesh
N Kampani.
The terms of reference of this Committee were to identify and recommend to the Board the appointment of
the Managing Director/ Wholetime Director/ Chief Executive Officer of the Company. During the year under
review, no meeting of the said Committee was held as there were no appointments for consideration.
The Board at its meeting held on 31 May 2006 constituted a Committee of Directors to address all matters
relating to the Company’s IPR (Intellectual Property Rights) and trademarks.
The Board at its meeting on 27 May 2009 dissolved the IPR Committee.
(iv) innovation Committee:
The Board at its meeting held on 30 April 2009 constituted a Committee of Directors to address all matters
relating to the Company’s product and technical development activities.
20
Britannia Annual Report 2008-09
28 July 08 Hyatt Regency, JA-1, Sector III, Salt Approval of Employee Stock Option
Lake City, Kolkata 700 098 10.30 a.m. Scheme
19 Sep 07 Hyatt Regency, JA-1, Sector III, Salt 10.30 a.m. Nil
Lake City, Kolkata 700 098
1 Aug 06 Science City 10.30 a.m. Approval of Employee Stock Option
Main Auditorium, JBS Haldane Scheme
Avenue,
Kolkata – 700 046
(b) Whether any Special Resolutions were passed last year through postal ballot: No.
(c) Whether any special resolution is proposed to be passed through postal ballot this year: No.
5. disClOsuREs
(a) Disclosures of materially significant related party transactions, i.e., transactions of the Company of material
nature, with its promoters, the Directors or the Management, their Subsidiaries or relatives etc., that may have
potential conflict with the interests of the Company at large:
Related party transactions in the ordinary course of business are reported to the Audit Committee. None of
them were (i) not in the normal course of business, or (ii) not on arms length basis, or (iii) in conflict with the
interests of the Company at large, including the related party transactions that are disclosed under item 25 of
Schedule ‘T’ to the accounts for the year 2008-09.
(b) Details of non-compliance by the Company, penalties, and strictures imposed on the Company by Stock
Exchange or Securities and Exchange Board of India or any statutory authority, on any matter related to capital
markets, during the last three years:
None
(c) Risk Management
A detailed review of business risks and the Company’s plan to mitigate them is presented to the Audit
Committee of the Board. The Company has been taking steps to mitigate foreseeable business risks. Business
risk evaluation and management is an ongoing and continuous process within the Company and regularly
updated to the Audit Committee.
21
Britannia Annual Report 2008-09
6 mEANs Of COmmuNiCATiON
Quarterly, Half-Yearly and Annual Results:
Quarterly, half-yearly and yearly financial results are published within the stipulated time as per the Listing
Agreement in leading newspapers, i.e., Financial Express (all editions) and Pratidin (Kolkata edition). The Company
also uploads financial results on its website, www.britannia.co.in.
As per the requirements of Clause 51 of the Listing Agreement, all the data relating to quarterly financial results,
shareholding pattern, etc. are uploaded to the website www.sebiedifar.nic.in.
The quarterly and half-yearly reports are not separately sent to each shareholder. However, the Company provides
the same to individual shareholders if requested.
No presentations were made to institutional investors or to the analysts during the year 2008-09.
7. GENERAl shAREhOldER iNfORmATiON
(a) Annual General meeting – date, time and venue
31 August 2009 – 9:30 a.m. at Hyatt Regency, JA-1, Sector III, Salt Lake City, Kolkata – 700 098.
(b) financial calendar (tentative)
For the first quarter ending 30 June 2009 End of July 2009
For the second quarter and half year ending 30 September 2009 End of October 2009
For the third quarter ending 31 December 2009 End of January 2010
For the year ending 31 March 2010 1st or 2nd week of June 2010
(c) Book closure period : 18 August 2009 to 31 August 2009 (Both days inclusive).
(d) dividend payment date : NA
(e) listing on stock Exchanges : The Company’s equity shares are listed at:
1. Bombay Stock Exchange Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai - 400 023.
2. Calcutta Stock Exchange Association Ltd., 7 Lyons Range, Kolkata - 700 001.
3. National Stock Exchange of India Ltd., Exchange Plaza, 5 th Floor, Bandra Kurla Complex, Bandra (East)
Mumbai - 400 051.
Listing fees as prescribed have been paid to all the aforesaid Stock Exchanges up to 31 March 2010.
(f) stock Code:
22
Britannia Annual Report 2008-09
During the year 2008-09, there was no trading of Company’s shares on Calcutta Stock Exchange.
(h) stock Performance: (Comparison of closing price/ index value on the respective dates)
(i) In terms of Section 205C of the Companies Act, 1956 read with the Investor Education and Protection Fund
(Awareness and Protection of Investor) Rules, 2001, during the year ended 31 March 2009, the Company has
credited an aggregate amount of Rs. 11,14,806/- to the Investor Education and Protection Fund (IEPF).
23
Britannia Annual Report 2008-09
As at 31 March 2009, the Company’s unpaid/ unclaimed dividend account had a balance of Rs. 1,45,95,401/-.
The Company sends out reminders to those shareholders who have not claimed the dividends for earlier years
to claim the same from the Company failing which the Company would be required to transfer the same to
IEPF after seven years.
(j) Registrar & Transfer Agents
M/s Sharepro Services (India) Pvt. Ltd., is the Registrar and Transfer Agents of the Company and handles the
entire share registry work, both Physical and Electronic. Accordingly, all documents, transfer deeds, demat
requests and other communications in relation thereto should be addressed to the registrar and transfer agents
at the address mentioned below:
Sharepro Services (India) Private Limited
13 AB, Samhita Warehousing Complex II Floor
Sakinaka Telephone Lane
Off Andheri - Kurla Road
Sakinaka, Andheri (East),
Mumbai - 400 072
(l) dematerialisation of shares: 11,799,904 shares representing 49.39% of the total equity capital were held in
dematerialised form with the National Securities Depository Limited and Central Depository Services (India)
Ltd. as on 31 March 2009. It may be noted that out of 50.96% of the foreign promoters holding, 45.13% of total
equity capital is held in physical form. If these shares are excluded, then 90.01% of the total equity capital can
be said to be held in dematerialised form.
(m) Outstanding GdRs/AdRs/ Warrants or any Convertible instruments, conversion dates and likely impact
on equity
Not applicable
(n) Plant locations
Note:
Pursuant to Clause 47(f) of the Listing Agreement, the Company has designated an e-mail ID exclusively for
registering complaints by investors and investors can reach the Company at investorrelations@britindia.com.
25
Britannia Annual Report 2008-09
Mumbai
27 May 2009
dEClARATiON
As provided under Clause 49 of the Listing Agreement with the Stock Exchanges, this is to confirm that all the members
of the Board and the Senior Management have affirmed compliance with the Code of Conduct for the year ended
31 March 2009.
The compliance of conditions of corporate governance We state that such compliance is neither an assurance as
is the responsibility of the company’s management. Our to the future viability of the company nor the efficiency or
examination was carried out in accordance with the effectiveness with which the management has conducted
Guidance Note on Certification of Corporate Governance the affairs of the company.
(as stipulated in Clause 49 of the Listing Agreement),
issued by the Institute of Chartered Accountants of
India and was limited to procedures and implementation For and on behalf of
thereof, adopted by the Company for ensuring the lovelock & lewes
compliance of the conditions of Corporate Governance. Chartered Accountants
It is neither an audit nor an expression of opinion on the
financial statements of the Company.
usha A Narayanan
Place: Mumbai Partner
In our opinion and to the best of our information and Date: May 27, 2009 Membership No.: 23997
26
Britannia Annual Report 2008-09
AUDITORS’ REPORT
1. We have audited the attached Balance Sheet of so far as appears from our examination of those
Britannia Industries Limited, as at March 31, 2009, books;
and the related Profit and Loss Account and the
Cash Flow Statement for the year ended on that (c) the Balance Sheet, Profit and Loss Account and
date annexed thereto, which we have signed under Cash Flow Statement dealt with by this report
reference to this report. These financial statements are in agreement with the books of account;
are the responsibility of the Company’s management.
Our responsibility is to express an opinion on these (d) in our opinion, the Balance Sheet, Profit and
financial statements based on our audit. Loss Account and Cash Flow Statement dealt
with by this report comply with the Accounting
Standards referred to in Section 211(3C) of the
2. We conducted our audit in accordance with Act, to the extent applicable;
auditing standards generally accepted in India.
Those Standards require that we plan and perform (e) On the basis of written representations received
the audit to obtain reasonable assurance about from the directors, as on March 31, 2009 and
whether the financial statements are free of material taken on record by the Board of Directors, we
misstatement. An audit includes examining, on report that none of the directors is disqualified
a test basis, evidence supporting the amounts and as on March 31, 2009 from being appointed as
disclosures in the financial statements. An audit also a director in terms of clause (g) of sub-section
includes assessing the accounting principles used (1) of Section 274 of the Act;
and significant estimates made by management, as
well as evaluating the overall financial statement
presentation. We believe that our audit provides a (f) In our opinion and to the best of our information
reasonable basis for our opinion. and according to the explanations given to us,
the said financial statements together with the
notes thereon and attached thereto, give, in the
prescribed manner, the information required
3. As required by the Companies (Auditor’s Report) by the Act and give a true and fair view in
Order, 2003, as amended by the Companies (Auditor’s conformity with the accounting principles
Report) (Amendment) Order, 2004 (together the generally accepted in India;
‘Order’) issued by the Central Government of India
in terms of sub-section (4A) of Section 227 of ‘The
Companies Act, 1956’ of India (the ‘Act’) and on (i) in the case of the Balance Sheet, of the state
the basis of such checks of the books and records of affairs of the Company as at March 31,
of the Company as we considered appropriate and 2009;
according to the information and explanations given
to us, we give in the Annexure a statement on the (ii) in the case of the Profit and Loss Account,
matters specified in paragraphs 4 and 5 of the said of the profit of the Company for the year
Order. ended on that date; and
27
Britannia Annual Report 2008-09
1. (a) The Company is maintaining proper records 4. In our opinion and according to the information
showing full particulars including quantitative and explanations given to us, having regard to the
details and situation of fixed assets. explanation that certain items purchased are of
special nature for which suitable alternative sources
(b) The fixed assets are physically verified by the do not exist for obtaining comparative quotations,
management according to a phased programme there is an adequate internal control system
designed to cover all the items over a period of commensurate with the size of the Company and the
three years, which, in our opinion, is reasonable nature of its business for the purchase of inventory,
having regard to the size of the Company and the fixed assets and for the sale of goods and services.
nature of its assets. Pursuant to the programme, Further, on the basis of our examination of the
a portion of the fixed assets has been physically books and records of the Company, and according
verified by the management during the year and to the information and explanations given to us, we
no material discrepancies between the book have neither come across nor have been informed of
records and the physical inventory have been any continuing failure to correct major weaknesses
noticed. in the aforesaid internal control system.
28
Britannia Annual Report 2008-09
(b) According to the information and explanations given to us and the records of the Company examined by us,
the particulars of dues of income tax, sales tax, wealth tax, service tax, customs duty, excise duty and cess as
at March 31, 2009, which have not been deposited on account of a dispute, are as follows:
10. The Company has no accumulated losses as at 17. On the basis of an overall examination of the Balance
March 31, 2009 and it has not incurred any cash Sheet of the Company, in our opinion and according
losses in the financial year ended on that date or in to the information and explanations given to us,
the immediately preceding financial year. there are no funds raised on a short-term basis which
have been used for long-term investment.
11. According to the records of the Company examined
by us and the information and explanation given to 18. The Company has not made any preferential
us, the Company has not defaulted in repayment of allotment of shares to parties and companies covered
dues to any financial institution or bank or debenture in the register maintained under Section 301 of the
holders, as may be applicable, as at the Balance Sheet Act during the year.
date.
19. The Company has not issued any debentures during
12. The Company has not granted any loans and the year.
advances on the basis of security by way of pledge of
shares, debentures and other securities. 20. The Company has not raised any money by way of
public issue during the year.
13. The provisions of special statute applicable to chit
fund and nidhi/mutual benefit fund/society are not 21. During the course of our examination of the
applicable to the Company. books and records of the Company, carried out in
accordance with the generally accepted auditing
14. In our opinion, the Company is not a dealer or practices in India, and according to the information
trader in shares, securities, debentures and other and explanations given to us, we have neither come
investments. across any instance of fraud on or by the Company,
noticed or reported during the year, nor have we
15. In our opinion and according to the information and been informed of such case by the management.
explanations given to us, the terms and conditions
of the guarantees given by the Company, for loans
taken by others from banks or financial institutions
during the year, are not prejudicial to the interest of For and on behalf of
the Company. Lovelock & Lewes
Chartered Accountants
16. In our opinion, and according to the information
and explanations given to us, on an overall basis, the Usha A Narayanan
term loans have been applied for the purposes for Place: Mumbai Partner
which they were obtained. Date : May 27, 2009 Membership No.23997
29
Britannia Annual Report 2008-09
BALANCE SHEET
Rs. ’000
As at Schedule 31 March 2009 31 March 2008
SOURCES OF FUNDS
Shareholders’ funds
Share capital A 238,902 238,902
Reserves and surplus B 8,006,510 7,319,201
8,245,412 7,558,103
Loan funds C
Secured
Unsecured 21,972 19,372
229,651 1,041,603
251,623 1,060,975
Deferred tax liability, net T(4) 99,421 –
8,596,456 8,619,078
APPLICATION OF FUNDS
Fixed assets D
Gross block 5,115,047 4,531,829
Less: Accumulated depreciation and amortisation 2,336,654 2,121,939
Net block 2,778,393 2,409,890
Capital work-in-progress and advances 60,203 96,917
2,838,596 2,506,807
4,230,969 3,808,300
Investments E – 23,759
Deferred tax asset, net
Current assets, loans and advances
Inventories F
Sundry debtors G 2,536,331 3,015,309
Cash and bank balances H 496,143 463,255
Other current assets I 407,978 437,664
Loans and advances 137,085 131,930
J
1,815,878 1,476,490
5,393,415 5,524,648
Less: Current liabilities and provisions
Liabilities K
Provisions 2,658,062 2,470,177
L 1,474,836 1,006,517
4,132,898 3,476,694
Net current assets 1,260,517 2,047,954
Miscellaneous expenditure
(to the extent not written off or adjusted) M 266,374 232,258
8,596,456 8,619,078
Significant accounting policies and notes to accounts T
The schedules referred to above and the notes thereon form an integral part of the financial statements.
30
Britannia Annual Report 2008-09
EXPENDITURE
Cost of materials O 19,103,947 15,546,196
Staff cost P 960,172 905,267
Expenses Q 8,430,867 7,079,052
Depreciation and amortisation D 334,560 290,832
Financial expenses R 160,071 97,321
28,989,617 23,918,668
2,531,472 2,244,777
Profit before taxation and exceptional items 206,295 (77,822)
Exceptional items (Profit)/Loss 2,325,177 2,322,599
S
Profit before taxation
Income tax expense
- Current income tax
- Fringe benefit tax 343,799 356,025
- Wealth tax 52,973 66,652
- Deferred income tax, net 1,224 1,224
Profit after taxation 123,180 (11,333)
Profit brought forward 1,804,001 1,910,031
Profit available for appropriation 600,000 600,000
Appropriations 2,404,001 2,510,031
Transfer to general reserve
Interim dividend
Proposed dividend
Tax on Interim / Proposed dividend 190,000 1,406,926
Profit carried forward 955,607 –
– 430,023
162,405 73,082
1,095,989 600,000
2,404,001 2,510,031
75.51 79.95
Basic earnings per share (Rs.) 75.51 79.95
Diluted earnings per share (Rs.)
Significant accounting policies and notes to accounts T
The schedules referred to above and the notes thereon form an integral part of the financial statements.
In terms of our report of even date
31
Britannia Annual Report 2008-09
32
Britannia Annual Report 2008-09
(iii) Figures in bracket indicate cash outgo, except for adjustments for operating activities.
(iv) Previous period figures have been regrouped/rearranged wherever necessary.
33
Britannia Annual Report 2008-09
Authorised
Equity shares 50,000,000 500,000 500,000
Issued, subscribed and paid up
Equity shares for cash fully paid
For consideration other than cash 1,917,455 19,175 19,175
pursuant to a contract fully paid
As bonus shares by capitalisation of 35,779 358 358
reserves and share premium fully paid
Equity shares bought back
YearNumber of shares 25,897,216 258,972 258,972
2001-021,000,000 (3,960,287) (39,603) (39,603)
2002-03946,174
2003-04792,226
2004-051,221,887
21,972 19,372
Unsecured
Long Term
From Bank 229,651 -
Short Term
From Bank - 791,603
From Others
Commercial Paper - 250,000
229,651 1,041,603
251,623 1,060,975
34
Britannia Annual Report 2008-09
- - 455 105,496
24,359
832 262 - - - 131,404508 508 131,912
118,349
Gross block at
cost
Additions
Deletions
- - 64,768
587,407
22,547
3,864
- - - 29,403
707,9897,141
7,141
715,130
729,010
As at 25,336
52,205
527,673
3,574,796
233,253
75,336
1,986 324 149 16,154
4,507,212
24,617
24,617
4,531,829
3,921,168
31 March
2008
Assets taken on
Data
Schedule D processing
finance lease
- Fixed Motor vehicles
equipment
assets (a) (b) Plant andFurniture
and fittings Computer
machinery
Software
Leasehold Intangible
Motor
Tangible
Freehold assets
assets land vehicles Trademarks
land
Buildings Previous
Own assets Designs year
Total Notes:
35
Britannia Annual Report 2008-09
Unquoted
Trade
Non - Trade
Subsidiaries
Sunrise Biscuit Co Private Limited - Equity Shares Rs.10 349,650 3,300,000 – – 3,649,650 36,321 3,321
Ganges Vally Foods Private Limited - Equity Shares Rs.10 252,000 – – – 252,000 7,164 7,164
J B Mangharam Foods Private Limited - Equity Shares Rs.10 354,136 – – – 354,136 5,432 5,432
International Bakery Products Limited - Equity Shares Rs.10 255,000 – – – 255,000 4,010 4,010
Britannia and Associates (Mauritius) Private Limited, USD 1 50,000 – – – 50,000 2,238 2,238
Mauritius - Equity Shares
Manna Foods Private Limited - Equity Shares Rs.10 105,000 – – – 105,000 1,470 1,470
Boribunder Finance and Investments Private Limited - Rs.10 171,000 – – – 171,000 799 799
Equity Shares
Others
Britannia New Zealand Foods Private Limited - Rs.10 2,832,200 – – – 2,832,200 575,246 575,246
Equity Shares
Daily Bread Gourmet Foods (India) Private Limited - Rs.10 209,185 – – – 209,185 31,953 31,953
Equity Shares
Britannia New Zealand Foods Private Limited - 10% Rs.10 2,940,000 – – – 2,940,000 29,400 29,400
Non Cumulative Redeemable Preference Shares
Britannia and Associates (Mauritius) Private Limited, USD 1 – 327,730 – – 327,730 15,736 –
Mauritius- Redeemable Preference Shares
Klassik Foods Private Limited - Equity Shares Rs.100 3,260 – – – 3,260 3,198 3,198
Nalanda Biscuits Co Limited - Equity Shares Rs.10 87,500 – – – 87,500 2,788 2,788
Flora Investments Company Private Limited - Rs.10 84,987 – – – 84,987 1,025 1,025
Equity Shares
Gilt Edge Finance and Investments Private Limited - Rs.10 69,861 – – – 69,861 847 847
Equity Shares
International Bakery Products Limited - 0% Unsecured Rs.100,000 582 – – – 582 58,200 58,200
Convertible Debentures
J B Mangharam Foods Private Limited - 6% Secured Rs.100 225,000 – – – 225,000 22,500 22,500
Redeemable Non Convertible Debentures
36
Britannia Annual Report 2008-09
Reliance Fixed Horizon Fund IV - Series 5 - Growth Rs.10 20,000,000 – – – 20,000,000 200,000 200,000
Reliance Fixed Horizon Fund VII - Series 1 - Growth Rs.10 10,000,000 – – – 10,000,000 100,000 100,000
Birla Sunlife Fixed Term Plan - Series BD - Rs.10 – 8,024,078 – – 8,024,078 80,250 –
Institutional - Growth
Birla Sunlife Fixed Term Plan - Series BF - Institutional Rs.10 – 6,005,243 – – 6,005,243 60,052 –
- Growth
IDFC Fixed Maturity Plan Series 17 - Growth Rs.10 5,000,000 – – – 5,000,000 50,000 50,000
Principal PNB Fixed Maturity Plan - 385 days - Series Rs.10 – 4,101,254 – – 4,101,254 41,013 –
7 - Institutional - Growth
Templeton Fixed Horizon Fund - Series 8 - Plan F - Rs.10 – 4,000,814 – – 4,000,814 40,008 –
Institutional - Growth
IDFC Fixed Maturity Plan Yearly Series 24 - Plan B - Rs.10 – 4,000,000 – – 4,000,000 40,000 –
Growth
HDFC Standard Life Insurance Company Ltd - Rs.10 988,412 – – – 988,412 25,182 25,182
Group Leave Encashment
ICICI Prudential Life Insurance Company Ltd - Rs.10 2,518,204 – – – 2,518,204 25,182 25,182
Group Leave Encashment
SBI Arbitrage Opportunities Fund - Growth Rs.10 887,571 – – – 887,571 10,000 10,000
ICICI Prudential Fixed Maturity Plan Series 41 - Rs.10 250,000 – – – 250,000 2,500 2,500
Retail Cumulative
Principal PNB Fixed Maturity Plan(FMP-33) 540 Days Rs.10 15,000,000 – – 15,000,000 – – 150,000
Plan-Series - 1
ING Fixed Maturity Fund Series XXXII - Growth Rs.10 15,000,000 – – 15,000,000 – – 150,000
Birla Fixed Term Plan Series AB - Growth Rs.10 10,000,000 – – 10,000,000 – – 100,000
Sundaram BNP Paribas Fixed Term Plan Series XXXII Rs.10 10,000,000 – – 10,000,000 – – 100,000
- Growth
Lotus India Fixed Maturity Plan Series IV - Growth Rs.10 10,000,000 – – 10,000,000 – – 100,000
Reliance Fixed Horizon Fund -IV - Annual Plan - Rs.10 5,000,000 – – 5,000,000 – – 50,000
Growth
UTI Fixed Maturity Plan Yearly Series YFMP 08/07 - Rs.10 5,000,000 – – 5,000,000 – – 50,000
Growth
DSP Fixed Term Plan Series 3 F - Growth Rs.1,000 50,000 – – 50,000 – – 50,000
Reliance Income Fund Retail Plan - Growth Rs.10 784,015 – – 784,015 – – 20,003
37
Britannia Annual Report 2008-09
HDFC Bank Limited - Equity Shares Rs.10 22,200 – – – 22,200 222 222
Aggregate market value of quoted investments Rs.
21,486 (Previous year: Rs.29,903)
1,583,019 2,322,856
Current
Unquoted
Non - Trade
ICICI Prudential Flexible Income Plan - Rs.10 5,995,572 80,597,233 1,091,310 38,776,186 48,907,929 517,128 63,394
Daily Dividend Reinvestment
Birla Sunlife Savings Fund Institutional - Rs.10 13,371,275 120,177,604 746,251 90,755,249 43,539,881 435,695 133,804
Daily Dividend Reinvestment
UTI Treasury Advantage Fund - Institutional - Rs.1,000 – 449,970 4,241 70,247 383,964 384,046 –
Daily Dividend Reinvestment
Tata Floater Fund - Daily Dividend Reinvestment Rs.10 8,090,113 71,010,613 641,355 47,468,536 32,273,545 323,884 81,189
HDFC Floating Rate Income Fund - Short Term Plan - Rs.10 – 35,716,447 199,754 3,973,719 31,942,482 322,009 –
Wholesale - Daily Dividend Reinvestment
Reliance Money Manager Fund - Insitutional - Rs.1,000 30,503 549,639 2,950 311,271 271,821 272,130 30,538
Daily Dividend Reinvestment
Fortis Money Plus Fund - Institutional - Daily Dividend Rs.10 – 43,253,697 878,680 21,588,339 22,544,038 225,503 –
Reinvestment
Kotak Floater - Long Term Plan - Institutional - Rs.10 – 26,814,781 119,056 4,960,416 21,973,421 221,488 –
Daily Dividend Reinvestment
IDFC Money Manager Fund - Treasury Plan - Super Rs.10 – 20,999,155 59,224 4,001,760 17,056,619 170,592 –
Institutional - Daily Dividend Reinvestment
ICICI Prudential Floating Rate Fund - Plan D - Rs.10 – 20,001,467 55,873 14,016,019 6,041,321 60,426 –
Institutional - Daily Dividend Reinvestment
Birla Sunlife Short Term Fund - Institutional - Rs.10 – 20,024,078 103,652 16,125,028 4,002,702 40,049 –
Daily Dividend Reinvestment
DWS Credit Opportunities Cash Fund - Rs.10 24,523,867 16,890,721 562,556 41,977,144 – – 246,138
Weekly Dividend Reinvestment
JM Money Manager Fund Super Plus Plan - Rs.10 19,356,207 59,081,514 946,618 79,384,339 – – 193,641
Daily Dividend Reinvestment
HDFC Cash Management Fund Savings Plus - Rs.10 10,987,125 10,984,131 183,987 22,155,243 – – 110,217
Daily Dividend Reinvestment
ING Liquid Plus Fund - Daily Dividend Reinvestment Rs.10 8,206,991 16,445,373 322,946 24,975,310 – – 82,097
Principal Floating Rate Fund - Daily Dividend Rs.10 6,991,401 3,995,086 117,987 11,104,474 – – 70,000
Reinvestment
Templeton India Floating Rate Income Fund Super Rs.10 6,992,448 – 28,522 7,020,970 – – 70,000
Institutional Plan - Daily Dividend Reinvestment
Tata Autocomp Systems Limited 7% Preference Shares Rs.100 500,000 – – 500,000 – – 54,998
Templeton India Ultra Short Bond Fund Institutional Rs.10 5,035,592 8,985,790 112,354 14,133,736 – – 50,451
Plan - Daily Dividend Reinvestment
UTI Fixed Maturity Plan - QFMP (02/08-I) - Rs.10 4,144,317 – 48,079 4,192,396 – – 41,443
Institutional Plan Dividend Plan
38
Britannia Annual Report 2008-09
HSBC Interval Fund - Plan I - Institutional Plan - Rs.10 3,999,092 – 83,113 4,082,205 – – 40,014
Dividend
Tata Treasury Manager SHIP - Daily Dividend Rs.1,000 30,539 – 142 30,681 – – 30,630
Reinvestment
ICICI Prudential Fund - Interval Fund II Series 17 - Rs.10 3,040,164 – 38,367 3,078,531 – – 30,402
Qtly Interval Plan C - Retail Dividend Plan
JM Interval Fund Quarterly Plan 3 - Institutional Plan Rs.10 3,028,200 – 29,057 3,057,257 – – 30,282
Dividend Plan
Principal Liquid Plus Fund - Daily Dividend Rs.10 3,019,561 22,852,411 371,223 26,243,195 – – 30,256
Reinvestment
JM Interval Fund Quarterly Plan 4 - Institutional Plan Rs.10 3,023,455 – 90,948 3,114,403 – – 30,235
Dividend Plan
Tata Fixed Horizon Fund - Series 17 - Scheme - D - Rs.10 3,022,433 – 36,595 3,059,028 – – 30,224
Dividend Plan
Standard Chartered Fixed Maturity Plan - Quarterly Rs.10 3,021,900 – 38,711 3,060,611 – – 30,219
Series 26 - Dividend
Lotus India Quarterly Interval Fund - Plan C - Rs.10 3,019,801 – 47,906 3,067,707 – – 30,201
Dividend Plan
ABN Amro Interval Fund - Quarterly Plan H - Rs.10 3,019,515 – 39,614 3,059,129 – – 30,196
Dividend Plan
AIG Short Term Fund Institutional - Weekly Dividend Rs.1,000 30,154 69,914 778 100,846 – – 30,154
Reinvestment
Reliance Monthly Interval Fund - Series 1 - Rs.10 3,003,992 – 14,493 3,018,485 – – 30,065
Institutional Plan - Dividend Plan
ICICI Prudential Fixed Maturity Plan - Series 39- Six Rs.10 3,000,000 – – 3,000,000 – – 30,000
Months - Plan A - Retail Dividend
ICICI Prudential Fixed Maturity Plan - Series 42- Rs.10 3,000,000 – – 3,000,000 – – 30,000
Three Months - Plan A - Retail Dividend Plan
ING Fixed Maturity Fund - Series 42 - Institutional Rs.10 3,000,000 – – 3,000,000 – – 30,000
Plan - Dividend
Tata Floating Rate Fund -Long Term - Income/Bonus Rs.10 2,972,751 – 56,403 3,029,154 – – 30,000
Dividend Plan
ABN Amro Flexible Short Term Plan - Series B - Rs.10 2,011,404 – 29,615 2,041,019 – – 20,114
Monthly Dividend Reinvestment
Reliance Fixed Horizon Fund Series VI - Series 2 - Rs.10 2,000,000 – – 2,000,000 – – 20,000
Institutional - Dividend Plan
2,972,950 1,810,444
4,230,969 3,808,300
39
Britannia Annual Report 2008-09
Considered doubtful:
Over six months
34,918 22,702
524,022 480,359
34,918 22,702
Less: Provision for doubtful debts 489,104 457,657
496,143 463,255
40
Britannia Annual Report 2008-09
# Includes -
Amount due from companies having common directors Rs. 11,726 (Previous year: Rs. 6,858).
Maximum amount due at any time during the year from companies having common directors
Rs. 19,907 (Previous year: Rs. 7,266).
Amount due from Managing Director Rs. 861 (Previous year: Rs. 1,029).
Maximum amount due at any time during the year from Managing Director Rs. 1,029
(Previous year: Rs. 1,192).
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Britannia Annual Report 2008-09
42
Britannia Annual Report 2008-09
43
Britannia Annual Report 2008-09
44
Britannia Annual Report 2008-09
SCHEDULES TO THE PROFIT AND LOSS ACCOUNT (CONTINUED)
Interest
160,071 97,321
Provisions and liabilities no longer required written back, net (205,185) (186,365)
206,295 (77,822)
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Britannia Annual Report 2008-09
Intangible assets
Intangible assets are stated at cost of acquisition less accumulated amortisation.
(d) Depreciation and amortisation
Depreciation in respect of all the assets acquired upto 30 June 1984 is provided on written down value
method. For additions on or after 1 July 1984, straight line method has been used. Depreciation rates are
estimated by the Company and are as specified in the amended Schedule XIV of the Companies Act, 1956,
except relating to vehicles which are depreciated over a period of five years. Assets costing individually
upto Rs. 5 are fully depreciated in the year of addition. Computer software is amortised over a period of six
years.
(f) Leases
Assets acquired under lease where the Company has substantially all the risks and rewards of ownership are
classified as finance lease. Such leases are capitalised at the inception of lease at lower of the fair value and
present value of minimum lease payments. Assets taken on finance lease are depreciated over its estimated
useful life or the lease term whichever is lower.
Assets acquired under lease where the significant portion of risks and rewards of ownership are retained by
the lessor are classified as operating lease. Lease rentals are charged to Profit and Loss Account on accrual
basis.
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Britannia Annual Report 2008-09
(g) Inventories
Inventories are valued at the lower of cost or estimated net realisable value, after providing for obsolescence,
where appropriate.
Raw materials, packing material and stores and spares are valued at cost computed on moving weighted
average basis. The cost includes purchase price, inward freight and other incidental expenses net of CENVAT
and VAT credit, where applicable.
Materials in process are valued at input material cost plus conversion cost as applicable.
Finished goods are valued at lower of net realisable value and prime cost, excise duty and other overheads
incurred in bringing the inventories to their present location and condition.
(h) Sundry debtors and Loans and advances
Sundry debtors and Loans and advances are stated after making adequate provision for doubtful debts and
advances.
(i) Investments
Long term investments are stated at cost. A provision for diminution is made to recognise a decline, other
than temporary, in the value of long term investments.
Current investments are stated at lower of cost and fair value.
(j) Revenue recognition
Sales are recognised when goods are supplied and are recorded net of trade discounts, rebates, sales tax, VAT
and excise duties (on goods manufactured and outsourced).
Income from royalty and services is accounted based on contractual agreements.
Dividend income is accounted for in the year in which the right to receive the same is established.
Interest on investments is booked on a time-proportion basis taking into account the amounts invested and
the rate of interest.
(k) Commodity hedging contracts
The realised gain or loss in respect of commodity hedging contracts, the pricing period of which has expired
during the year is recognised in the Profit and Loss account. However, in respect of contracts, the pricing
period of which extends beyond the Balance Sheet date, suitable provisions for likely loss, if any, are made.
The Company uses foreign exchange forward contracts to cover its exposure to movements in foreign
exchange rates. The use of foreign exchange forward contracts reduces the risk of fluctuations in exchange
movements for the Company. The Company does not use the foreign exchange forward contract for trading
or speculative purposes.
Premium or Discount arising at the inception of forward contracts against the underlying assets is amortised
as expense or income over the life of contract. Exchange differences on forward contracts are recognized in
the Profit and Loss account in the reporting period in which the exchange rates change.
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Britannia Annual Report 2008-09
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Britannia Annual Report 2008-09
49
Britannia Annual Report 2008-09
Banking facilities given to Name of the bank 31 March 2009 31 March 2008
(i) Britannia and AssociatesABN Amro Bank NV, Singapore 643,383 448,742
(Mauritius) Pvt. Ltd, Mauritius
(ii) Strategic Food International National Bank of Fujairah, 120,882 96,020
Company LLC, Dubai Dubai
HSBC Bank Middle East, Dubai 41,280 32,790
Bank of Baroda, Dubai 18,301 14,537
BBK Bank, Dubai
88,614 70,389
Blom Bank, Dubai
68,800 54,650
Commercial Bank of Dubai, 13,760 10,930
Dubai
National Bank of Um Al
Dahrain, Dubai
15,136 12,023
(d) The Company has furnished the following letters of comfort/letters of awareness:
Banking facilities given to Name of the bank 31 March 2009 31 March 2008
Britannia New Zealand Foods HSBC Bank 45,000 600,000
Private Limited
Assets on operating lease which represent motor vehicles (acquired prior to 1 April 2001) aggregate to
Rs. 4,064 (Previous year: Rs. 5,707). The charge on account of lease rental to Profit and Loss Account for the
year is Rs. 1,511 (Previous year: Rs. 1,456).
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Britannia Annual Report 2008-09
SCHEDULES TO THE BALANCE SHEET AND PROFIT AND LOSS ACCOUNT
713 2,056
The Company has taken motor vehicles on finance leases. The total minimum lease payments and present
value of minimum lease payments are as follows:
Later than 1 year and not later 15,200 12,037 13,617 10,755
than 5 years
The difference between minimum lease payments and the present value of minimum lease payments of
Rs. 3,445 (Previous year: Rs. 3,044) represents interest not due. The lease liability is secured by the relevant
vehicles acquired under lease.
4 “Accounting for Taxes on Income” disclosure as per AS 22 : Major components of deferred tax assets and liabilities
on account of timing differences are as follows:
5 The Company has an investment of Rs. 49 (Previous year: Rs. 49) in a partnership firm “Britannia Sports” having
a capital of Rs. 100 (Previous year: Rs. 100) in which it holds 49% share of the Profit and Loss and the balance
share is held by two associate companies, Flora Investments Company Private Limited and Gilt Edge Finance and
Investments Private Limited who hold 26% and 25% respectively. The Company has booked its proportionate
share of partnership losses which is disclosed in the Profit and Loss Account.
51
Britannia Annual Report 2008-09
In Units
Mutual funds Purchased Reinvested Sold
Face value
per unit -
Rs.
10
Birla Cash Plus - Institutional Premium Plan 115,774,240 20,975 115,795,215
- Daily Dividend Reinvestment
ICICI Prudential Liquid Plan - Super Institutional 10 96,058,064 18,181 96,076,245
- Daily Dividend Reinvestment
Kotak Liquid Plan - Institutional Premium Plan
- Daily Dividend Reinvestment 10 22,080,290 3,507 22,083,797
Principal Cash Management Fund - Liquid Option
- Institutional Premium Plan - Daily Dividend 10 2,999,790 514 3,000,304
Reinvestment
Templeton India Treasury Management Account
- Super Institutional Plus - Daily Dividend
Reinvestment 1,000 109,926 14 109,940
IDFC Liquidity Manager Plus - Institutional
- Daily Dividend Reinvestment
Reliance Liquidity Fund - Institutional 1,000 39,992 7 39,999
- Daily Dividend Reinvestment
HSBC Cash Fund - Institutional Plus
- Daily Dividend Reinvestment 10 50,984,195 8,863 50,993,058
Fortis Overnight Fund - Institutional
- Daily Dividend Reinvestment 10 5,996,642 1,104 5,997,746
Tata Liquid Super High Investment Fund
- Daily Dividend Reinvestment
UTI Liquid Cash Plan - Institutional 10 27,995,451 7,151 28,002,602
- Daily Dividend Reinvestment
JM High Liquidity Fund - Super Institutional Plan 1,000 35,890 25 35,915
- Daily Dividend Reinvestment
Birla Sunlife Cash Manager - Institutional
- Daily Dividend Reinvestment 1,000 480,653 71 480,724
HSBC Liquid Plus - Institutional Plus -
- Daily Dividend Reinvestment 10 34,942,345 6,316 34,948,661
HDFC Liquid Fund - Daily Dividend Reinvestment
IDFC Floating Rate Fund Long Term Institutional
- Plan B -Daily Dividend Reinvestment 10 1,999,400 288 1,999,688
Kotak Flexi Debt Scheme
- Daily Dividend Reinvestment 10 8,034,064 17,501 8,051,565
DWS Insta Cash Fund - Institutional
- Daily Dividend Reinvestment
10 40,203,173 6,173 40,209,346
UTI Floating Rate Fund - Short Term Plan
10 3,995,392 29,408 4,024,800
- Daily Dividend Reinvestment
Kotak Floater Short Term
- Weekly Dividend Reinvestment 10 18,919,262 20,122 18,939,384
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Britannia Annual Report 2008-09
10 3,000,000 – 3,000,000
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Britannia Annual Report 2008-09
54
Britannia Annual Report 2008-09
55
Britannia Annual Report 2008-09
(a) and (b) represent estimate made for probable cash outflow arising out of pending disputes/litigations with
various regulatory authorities. The timing of the outflow with these matters depends on the position of law and
the settlement of which is not expected to exceed 2-3 years in most cases.
(c) represents provisions made for probable liabilities/claims arising out of commercial transactions with vendors/
others. Further disclosures as required in AS 29 are not made since it can be prejudicial to the interests of the
Company.
Pursuant to Labour Commissioner’s Order under Section 25O(1) of the Industrial Disputes Act, 1947,
production at the Company owned facility was closed effective 24 March 2004. As per the Order of the
8
Mumbai High Court, the Company as on the date of the Balance Sheet has paid an amount of Rs. 58,317
(Previous year: Rs. 58,317) equivalent to eligible compensation under Section 25O(1) of the Industrial
Disputes Act, 1947. Further, based on the appeal filed by the worker union, the Industrial Tribunal has
reversed the Order of the Labour Commissioner. The Company has preferred an appeal against the Order
of the Industrial Tribunal. As per interim direction of the Mumbai High Court, the Company has paid
Rs. 12,799 (Previous year: Rs. 13,320) as compensation equivalent to 50% of the last drawn amount for the period
from 1 April 2008 to 19 November 2008 and 70% of the last drawn amount for the period from 20 November
2008 to 31 March 2009. The Company has made the above payments as compensation under the Industrial
Disputes Act, 1947. The case is currently pending in the High Court.
Notes:
(a) The above value does not include sale of wheat and by-products on conversion of inputs aggregating to
Rs. 812,914 (Previous year: Rs. 609,770), which has been netted off with cost of material.
(b) The above does not include quantities issued for sales promotion.
56
Britannia Annual Report 2008-09
Quantity Value
Description 31 March31 March 31 March31 March
20092008 20092008
Tonnes Tonnes
Flour 377,149 354,804 5,261,980 4,577,450
Fats and Oils 66,502 65,604 3,287,837 2,930,627
Sugar 121,780 115,070 2,078,088 1,687,665
Lamination roll 7,138 6,711 1,754,341 1,553,638
Others 5,288,366 4,037,732
17,670,612 14,787,112
10 The Company has written back a net amount of Rs. 59,062 (Previous year: Rs. 13,145) in respect of liabilities to
certain packers and others which have been withdrawn and / or settled during the year.
11 Provisions for deferred tax for the current year are after provision in respect of earlier years of Rs. 11,246 (Previous
year: Rs.Nil).
12 Salaries, wages and bonus and contribution to provident and other funds are net of recoveries of
Rs. 27,953 and Rs. 2,789 respectively for seconded staff costs (Previous year: Rs. 19,546 and Rs. 1,998
respectively).
13 In accordance with AS 13 - “Accounting for Investments”, notified u/s 211(3C) of the Companies
Act, 1956, the Company has, based on an approved business plan, retained provision of
Rs. 325,000 (Previous year: Rs. 325,000) for diminution, other than temporary, on long term investment made in
equity shares of a joint venture company.
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Britannia Annual Report 2008-09
Statement of computation of net profits as per Section 349 of the Companies Act, 1956.
31 March 2009 31 March 2008
Profit before taxation2,325,177 2,322,599
Add :
Managerial remuneration42,095
Directors’ Sitting fees550 36,606
Commission to Non-wholetime Directors17,500 634
Depreciation and amortisation as per accounts334,560 13,872
VRS and terminal compensation benefits249,435 290,832
Provision for doubtful debts and loans/advances402,216 130,542
3,371,533 13,643
Less : 2,808,728
Profit on sale of investments, net72,774
Provision for doubtful debts and advances written back–
Provisions and Liabilities no longer required written back264,247 67,512
Depreciation and amortisation as per Section 350 of the Companies 8,875
Act, 1956332,288 199,510
Profit on sale of properties–
Profit on sale of assets121 289,308
Profit under Section 349 of the Companies Act, 19562,702,103 21,735
Non wholetime Directors’ commission restricted to 1%27,021 2,032
Managerial remuneration @ 5%135,105 2,219,756
22,198
110,988
Notes :
1. Contributions to employee retirement / post retirement and other employee benefits which are based on
actuarial valuation done on an overall Company basis are excluded from above.
2. Ms. Vinita Bali was appointed as Managing Director for a period of 5 years with effect from 31 May 2006.
58
Britannia Annual Report 2008-09
59
Britannia Annual Report 2008-09
1. Ultimate Holding Company ABI Holdings Limited (ABIH), UK, The Bombay Burmah Trading
Corporation Limited effective from 14 April 2009.
Associated Biscuits International Limited (ABIL), UK
Holding Company
2. Subsidiary CompaniesStrategic Food International Co. LLC, Dubai
Boribunder Finance & Investments Private Limited
International Bakery Products Limited
J B Mangharam Foods Private Limited
Sunrise Biscuit Company Private Limited
Manna Foods Private Limited
Ganges Vally Foods Private Limited
Al Sallan Food Industries Company SAOG, Oman
Flora Investments Company Private Limited
Gilt Edge Finance & Investments Private Limited
Britannia and Associates (Mauritius) Private Limited, Mauritius
Britannia and Associates (Dubai) Private Company Limited, Dubai
Strategic Brands Holding Company Limited, Dubai
Britannia Lanka Pvt. Ltd, Srilanka
Daily Bread Gourmet Foods (India) Private Limited
Fellow Subsidiary CompaniesValletort Enterprises Pte Limited, Singapore
3.
Spargo Enterprises Pte Limited, Singapore
Nacupa Enterprises Pte Limited, Singapore
Dowbiggin Enterprises Pte Limited, Singapore
Bannatyne Enterprises Pte Limited, Singapore
Other related parties with whom transactions have taken place during the year
4. - Joint Venture CompaniesBritannia New Zealand Foods Private Limited
Britannia New Zealand Holdings Private Limited, Mauritius
- AssociatesBritannia Sports (partnership firm)
Klassik Foods Private Limited
Nalanda Biscuits Company Limited
Key Management Personnel (KMP)
5. Managing DirectorMs.Vinita Bali
Relatives of Key Management
PersonnelNone
6.
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Britannia Annual Report 2008-09
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Britannia Annual Report 2008-09
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Britannia Annual Report 2008-09
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Britannia Annual Report 2008-09
26 Employee Benefits
(a) Post Retirement Benefit - Defined Contribution Plans
The Company has recognised an amount of Rs. 45,147 (Previous year Rs. 50,441) as expenses under the
defined contribution plans in the Profit and Loss account for the year:
*Having regard to the assets of the Fund and the return on the investments, the Company does not expect
any deficiency in the foreseeable future.
(b) Post Retirement Benefit- Defined Benefit Plans
The Company makes annual contributions to the Britannia Industries Limited Covenanted Staff Gratuity
Fund and Britannia Industries Limited Non Covenanted Staff Gratuity Fund, funded defined benefit plans for
qualifying employees. The Scheme provides for lumpsum Payment to vested employees at retirement, death
while in employment or on termination of employment of an amount equivalent to 15 days salary payable for
each completed year of service or part thereof in excess of six months except in case of employees covered
under Non Covenanted Gratuity Fund there is ceiling of Rs. 350. Vesting occurs only upon completion of
five years of service, except in case of death or permanent disability. The present value of the defined benefit
obligation and the related current service cost are measured using the projected unit credit method with
actuarial valuation being carried out at Balance Sheet date.
1. Reconciliation of Opening and Closing balances of the present value of the defined benefit obligation:
Rs. ’000
31 March 200931 March 2008
Obligations at 1 April 2008170,096183,586
Current Service cost9,7177,844
Interest cost13,60814,687
Benefits settled(53,583)(38,410)
Actuarial (gain)/loss6,8912,389
Past Service cost--
Obligations at 31 March 2009146,729170,096
2. Change in Plan assets
Plan assets at 1 April 2008 at fair value160,090163,878
Expected return on plan assets12,80713,110
Actuarial gain/(loss)(636)(463)
Asset distributed on settlements--
Contributions22,82121,975
Benefits settled(53,583)(38,410)
Plan assets at 31 March 2009 at fair value141,499160,090
3. Reconciliation of present value of the obligation and the
fair value of the plan assets
Present value of obligation at 31 March 2009146,729170,096
Plan assets at 31 March 2009 at fair value141,499160,090
Amount recognised in Balance Sheet Asset/(Liability)(5,230)(10,006)
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Britannia Annual Report 2008-09
27 The Company had offered a VRS scheme to workers at its manufacturing unit at M.T.H. Road, Padi, Chennai
during the month of April 2008. The same was accepted by all workers. Consequently, manufacturing operations
have been suspended effective 7 April 2008.
28 Disclosure as per Clause 32 of the Listing Agreement in respect of loans and advances in the nature of loans to
associates/subsidiaries outstanding at year end:
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Britannia Annual Report 2008-09
29 In April 2007, the Commissioner of Income Tax (CIT), Kolkata issued a notice to the Company’s Covenanted
Staff Pension Fund (BILCSPF) asking it to show cause why recognition granted to the Fund should not
be withdrawn for refunding in the year 2004, the excess contribution of Rs. 121,199 (Previous year:
Rs. 121,199) received by it in earlier years. The Single Judge of the Calcutta High Court, on a writ petition, granted
a stay restraining the CIT from proceeding with the show cause notice but with a direction to the Company to
deposit Rs. 121,199 (Previous year: Rs. 121,199) (included in Deposits under Schedule I) with a nationalized
bank in the name of the Fund. On appeal, the Division Bench of the Calcutta High Court disposed off the writ
petition pending before the Single Judge. The Fund filed a Special Leave Petition before the Supreme Court
against the order of the Division Bench. The Supreme Court at its hearing on 12 May 2008 has set aside the order
of the Division Bench of the Calcutta High Court. As a condition of the stay order granted, the Company has,
under protest, made the deposit as per the direction of Hon’ble Calcutta High Court.
Pursuant to the directions of the Madras High Court, the CIT, Kolkata passed orders rejecting the deeds of
variation submitted in May 2005 by the Pension Fund on technical grounds. The Company has preferred an
appeal before the Central Board of Direct Taxes, New Delhi challenging the order.
A suit has been filed in the City Civil Court, Bangalore, where the Hon’ble judge has passed interim orders on
1 January 2009 and 10 February 2009 directing the Funds to pay pension to the members in accordance with the
Funds’ calculations. The Funds have since complied with the said order.
The Britannia Industries Limited Pensioners Welfare Association had also filed a writ petition in the Hon’ble
Calcutta High Court seeking various reliefs relating, inter alia, to their pension benefits. In April 2009, the
association has withdrawn this case.
The Company believes, based on current knowledge and after consultation with eminent legal counsel that the
resolution of the matter. will not have material adverse effect on the financial statements of the Company.
30 There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding
for more than 45 days as at 31 March, 2009. This information as required under the Micro, Small and Medium
Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the
basis of information available with the Company and has been relied upon by the auditors.
31 Derivative contracts
(i) Foreign currency Forward Contracts
The Company has entered into foreign exchange forward contracts for hedging the foreign exchange
fluctuation risks on payables, which has been accounted for in line with AS 11 - “ The effects of changes
in foreign exchange rates”. Accordingly, the amount receivable of Rs. 229,651 (Previous year: Rs. Nil) and
foreign currency payable of Rs. 200,772 (Previous year: Rs. Nil) in the subsequent years, relating to foreign
exchange forward contracts for hedging have been netted off and disclosed under ‘Loans and advances’
(Refer Schedule J).
The Company has designated certain Foreign Exchange Forward Contracts outstanding as on 31 March
2009 as Hedge of highly probable forecasted transaction. On that date, the Company had forward contracts
to sell USD 2,091,820 (Previous year: USD 981,934). As at the year end the unrealised exchange loss of
Rs. 1,102 (Previous year: Rs. Nil) arrived on a mark to market basis has been accounted for.
32 During the year the Company has received Rs. 1,320 as grant in aid for implementation of ISO 22000 on HACCP
systems from Government of India for Uttarakhand factory.
33 The disclosure required under AS 27 - “Financial Reporting of Interests in Joint Ventures” has been given
below:
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Britannia Annual Report 2008-09
67
Britannia Annual Report 2008-09
V. Generic Names of Three Principal Products/Services of Company (as per monetary terms)
68
Britannia Annual Report 2008-09
1. We have audited the attached Consolidated revenues of Rs. 166,382 thousands for the year
Balance Sheet of Britannia Industries Limited (the ended on that date as considered in the consolidated
‘Company’) and its subsidiaries and joint ventures financial statements have been certified by their
(together the ‘Group’), as at March 31, 2009, and the directors, whose certificates have been furnished
related Consolidated Profit and Loss Account and to us, and in our opinion, in so far as it relates to
Consolidated Cash Flow Statement for the year ended amounts included in respect of these subsidiaries
on that date annexed thereto, which we have signed and joint ventures, it is solely based on these
under reference to this report. These consolidated certificates.
financial statements are the responsibility of the
Company’s management and have been prepared by
the management on the basis of separate financial 4. We report that the consolidated financial statements
statements and other financial information regarding have been prepared by the Company’s management
the components. Our responsibility is to express an in accordance with the requirements of Accounting
opinion on these consolidated financial statements Standard (AS) 21 – Consolidated Financial
based on our audit. Statements, AS 23 – Accounting for Investments
in Associates in Consolidated Financial Statements
and AS 27 – Financial Reporting of Interest in Joint
Ventures notified u/s 211(C) of the Companies Act,
2. We have conducted our audit in accordance with 1956.
the auditing standards generally accepted in India.
Those standards require that we plan and perform
the audit to obtain reasonable assurance about 5. Based on our audit and on consideration of the
whether the financial statements are free of material reports/certificates of other auditors/directors on
misstatement. An audit includes examining, on separate financial statements and on the other
a test basis, evidence supporting the amounts and financial information of the components, in our
disclosures in the financial statements. An audit also opinion and to the best of our information and
includes assessing the accounting principles used according to the explanations given to us, the
and significant estimates made by management, as attached consolidated financial statements give a
well as evaluating the overall financial statement true and fair view in conformity with the accounting
presentation. We believe that our audit provides a principles generally accepted in India:
reasonable basis for our opinion. (i) in the case of the Consolidated Balance Sheet,
of the consolidated state of affairs of the Group
as at March 31, 2009;
(ii) in the case of the Consolidated Profit and
3. We did not audit the financial statements of certain Loss Account, of the consolidated results of
subsidiaries and joint ventures whose financial operations of the Group for the year ended on
statements reflect the Group’s share of total that date; and
assets of Rs. 2,149,638 thousands as at March 31, (iii) in the case of the Consolidated Cash Flow
2009 and the Group’s share of total revenues of Statement, of the consolidated cash flows of the
Rs. 2,621,407 thousands for the year ended on that Group for the year ended on that date.
date as considered in the consolidated financial
statements. These financial statements have been
audited by other auditors whose reports have been
furnished to us, and in our opinion, in so far as it
relates to the amounts included in respect of these
subsidiaries and joint ventures, it is solely based
on the reports of the other auditors. The financial For and on behalf of
statements of certain subsidiaries and joint ventures Lovelock & Lewes
whose financial statements reflect the Group’s Chartered Accountants
share of total assets of Rs. 284,871 thousands as at
March 31, 2009 and the Group’s share of total Usha A Narayanan
Place: Mumbai Partner
Date : May 27, 2009 Membership No. 23997
69
Britannia Annual Report 2008-09
The schedules referred to above and the notes thereon form an integral part of the consolidated financial statements.
In terms of our report of even date
70
Britannia Annual Report 2008-09
Rs. ’000
For the year ended Schedule 31 March 2009 31 March 2008
INCOME
Gross sales
34,522,596 28,092,098
Less : Excise duty
310,316 329,597
Net sales
34,212,280 27,762,501
Other income
N 387,176 334,144
34,599,456 28,096,645
EXPENDITURE
Cost of materials O 21,190,636 16,929,035
Staff cost P 1,587,075 1,262,579
Expenses Q 9,054,224 7,218,760
Depreciation and amortisation (including impairment) D 659,106 393,606
Financial expenses R 326,031 185,956
32,817,072 25,989,936
1,782,384 2,106,709
Profit before taxation and exceptional items (180,059) (74,714)
Exceptional items (Profit)/Loss S 1,962,443 2,181,423
Profit before taxation
Income tax expense [Refer note 1(r) of Schedule T]
-Current income tax 346,508 359,164
-Fringe benefit tax 54,648 68,030
-Wealth tax 1,224 1,225
-Deferred income tax, net 127,646 (12,094)
Profit after taxation before Share of Profits/(Losses) of 1,432,417 1,765,098
Associates (Net) and Minority Interest
Share of Net Profit/(Loss) of Associates
2,117 413
Share of Loss/(Profit) of Minority
80,314 8,878
Profit after taxation
1,514,848 1,774,389
Profit brought forward
146,166 146,166
Profit available for appropriation
1,661,014 1,920,555
Appropriations
Transfer to general reserve
Interim dividend 190,000 1,271,284
Proposed dividend 955,607 –
Tax on Interim/Proposed dividend – 430,023
Profit carried forward 162,405 73,082
353,002 146,166
1,661,014 1,920,555
63.41 74.27
Basic earnings per share (Rs.) 63.40 74.27
Diluted earnings per share (Rs.)
Significant accounting policies and notes to accounts T
The schedules referred to above and the notes thereon form an integral part of the consolidated financial statements.
In terms of our report of even date
71
Britannia Annual Report 2008-09
72
Britannia Annual Report 2008-09
Rs. ’000
31 March 2009 31 March 2008
Net Increase/(Decrease) in cash and cash equivalents 1,316,076 (100,381)
Cash and cash equivalents at the beginning of the period 2,345,809 2,446,190
Cash and cash equivalents at the end of the period 3,661,885 2,345,809
Notes:
(i) The above Cash Flow Statement has been prepared under Indirect method as per Accounting Standard 3 “Cash
Flow Statement” notified u/s 211(3C) of the Companies Act, 1956.
Rs. ’000
(ii) Cash and cash equivalents at the end of the period 31 March 2009 31 March 2008
Cash and bank balances includes Rs. 14,595 (Previous year: Rs. 13,598)
in dividend accounts which is restrictive in nature. 688,412 534,619
Current investments 2,973,473 1,811,190
3,661,885 2,345,809
(iii) Figures in bracket indicate cash outgo, except for adjustments for operating activities.
(iv) Previous period figures have been regrouped/rearranged wherever necessary.
73
Britannia Annual Report 2008-09
Addition:
Adjustment – – – – – – (139,340)
Deduction:
74
Britannia Annual Report 2008-09
From bank
Demand loan – 33,150
Term loan 306,810 12,513
[Secured by hypothecation by way of first charge on book debts,
receivables, plant and machinery, stocks and stores]
From others
Finance lease obligations 23,491 19,372
[Secured by hypothecation of assets taken on lease]
645,440 315,732
Unsecured
From bank
From others
2,058,033 2,406,802
2,703,473 2,722,534
Notes:
a) Loan amounting to Rs.237,475 (Previous year: Rs. 204,650) bears interest at the rate of 6%. The balance amount
of Rs. 82,979 (Previous year: Rs. 64,667) pertains to interest free loan. The said loan has been secured by the
personal guarantee of continuing founder promoters of Al Sallan Food Industries Company SAOG, Oman and are
also secured by a second charge on the tangible assets of Al Sallan Food Industries Company SAOG, Oman.
b) The loan from Government of Oman has been rescheduled as per the letter received from Ministry of Finance
dated 10 January 2007 and the repayment period has been extended to 13 years which starts from 1 August 2006
and ends on 1 August 2018.
c) Term Loan includes Rs. 643,383 (Previous year: Rs. 440,521) payable to ABN Amro Bank. The loan has been
issued to Britannia and Associates (Mauritius) Pvt. Limited to fund its acquisition of Strategic Foods International
LLC, Strategic Brands Holdings Ltd and Al Sallan Food Industries Company SAOG and the amount has been
guaranteed by Britannia Industries Limited.
75
Britannia Annual Report 2008-09
Rs. ’000 - - 195 Notes:a) Agreements in respect of leasehold land at two factories
4,768,101
As at 31 - 114 (Previous year: two factories) are in the process of renewal.b)
12,571 4,092,113
Net book value
March2008 52,278 357 18,679 Buildings include:
52,278 356 (i) fully paid unquoted shares and bonds in respect of ownership
16,179
- - 195 flats in 6 Co-operative Housing Societies (Previous year: 6 Co-
As at 31 2,280 111,898 - 12,571 operative Housing Societies); 539 shares (Previous year: 539
March2009 112,469 149 18,679 shares) of Rs. 50
956 647,403 794,627 149 each and 50 interest-free loan stock bonds ( Previous year: 50
- interest free loan stock bonds ) of Rs. 100 each.
16,179132,268 4,511,365
656,036107,452 3,475,879 8,674 4,705,111 (ii) Net Book Value Rs. 108,356 (Previous year: 101,089)
As at 31
March2009 3,056,362 2,515,577 36,8833,990,856107,143 constructed on a land leased from the government[U.A.E] which is
22,526 122,431 143,995 3,611,728
13,327 renewable each year in relation to Strategic Food International Co
Accumulated 163,808 - 62,990 LLC (SFIC). The
depreciation 828 143,182 75,112 433,905 101,257 Lessor (government(U.A.E)) would be required to give the
and Exchange Charge for tenant (SFIC) a notice of one year for termination of the lease.
SCHEDU amortisation / On
53,218
83,046 374,982132,073 4,498,794 (iii) Net Book Value Rs. 158,903 (Previous year: Rs.
Difference
impairment the year
LES TO deletions
311 4,686,432 3,974,677 107,199)constructed on a land leased from the Public Establishment
for Industrial Estates (Sohar Industrial Estate) for a period of 25 years
23,719
Refer note
THE -
2,760
during(g) below the 571100,385426,38537,0087,3292
29-5,84775,112654,778 from 1 January 1994
4,3284,328659,106393, which is renewable thereafter for a further period of 25 years in
2,649
CONSOL year ,112 606 relation to Al Sallan Food Industries Co SAOG (ASFI).
c) Plant and machinery includes:
IDATED (i) Net Book Value Rs. Nil (Previous year: Rs. 118,030) which is
-- ----352,509 --352,509(115,493)
mortgaged against bank borrowings/ Term Loans in relation to
BALANC 80,512203,74910,77953,0744,39
SFIC.(ii) Net book value of tangible assets included in the above
5
E SHEET schedule pertaining to ASFI amounts to Rs. 440,562 (Previous year:
Rs. 336,451). Substantially all the tangible assets are mortgaged as
(CONTIN On
--6,56512,562791-330 42---20,290 --20,290242,665 security against the
government term loan and other term loans amounting to Rs.
UED) acquisitionRefer note(f) 635,594 (Previous year: Rs.520,014)
below d) There is a deviation in the accounting policies followed by Daily
Bread Gourmet Foods (India) Private Limited, Al Sallan Food
Industries Company (SAOG) and Strategic Food International
- - Co.LLC with respect tothe rate of depreciation adopted by the
As at 31
52,278 471 24,617 Company, as mentioned in Note 1(i) of Schedule T. These Net Book
March2008
- 43 Value of the assets amounts to Rs.1,198,115 (Previous year: Rs.
- - - 922,402) of the total assets of the Group.
114,178 149 e) Goodwill on consolidation comprises of Goodwill (including share
As at 31 1,709- 1,442,030 - - of Joint Ventures) (Gross) Rs. 519,522 (Previous year: Rs.
March2009 460,897- 6,532,241 2,940,635- - 385,487)and Capital Reserve Rs. 10,505 (Previous year:
266,426 45,557 7,141 Rs.10,505).f) Acquisition during the year represent the assets of
96,379 2,827 Daily Bread Gourmet Foods (India) Private Limited on account of
Acquisition Exchange - - 508 further investment made in the entity.g) Current year charge includes
Additions Deletions 196,400 509,017 charge on account of impairment Rs.128,817 (Previous year: Rs. Nil)
Adjustment 83,607 -- 9,185,226
- (including goodwill impairment of Rs. 75,112 (Previous year: Rs. Nil))
during - 3,603,290 in relation to Daily Bread Gourmet Foods
Difference during 26,479 31,250 (India) Private Limited .
-- 17,193 ----158,706
during 13,971118,51524,964832424 8,438
Gross block at
during 24,617
cost the year
-- --29,40335,656990,370
-
the year164,967721,64024,88112,1981,6
the
year 25 -
the year
Refer note(f) below -- 7,141
---98,379695,173
135,515433,6134,62018,3814,66
5 508
-
--38,58639,2911,702-771 72---80,422
31,250
8,438
Total
52,278 39914916,154
As at 31 a) e) 7,602,584
March2008 114,178b) 1,116,933c) 374,9827,577,967
5,456,212260,187166,65319,842 80,422
(139,340) 7,602,584
3,198,093
Add: Capital work in
progress - including
advances on capital
account Rs.17,953
76 (Previous year: Rs.7,552)
Britannia Annual Report 2008-09
Non-trade :
Fully paid Equity Shares 2,612 2,375
Unquoted
Trade: Fully paid Debentures 4 4
Non-trade :
Fully paid Equity Shares in Associates 12,721 11,621
(including goodwill Rs. 3,406)
Fully paid Debentures 80,186 –
Fully paid Equity Shares 252 252
Units (fully paid)
- Mutual Funds 653,823 1,522,582
- Insurance policy 50,364 50,364
Govt. Securities 6 6
Others Capital in a partnership firm 100 100
800,068 1,587,304
Current
Unquoted
77
Britannia Annual Report 2008-09
78
Britannia Annual Report 2008-09
Trade and other issues [Refer note 5(c) of Schedule T] 107,774 281,711
Employee benefits 109,269 118,486
Fringe benefit tax 10,436 42
Interim dividend 955,607 –
Proposed dividend – 430,023
Tax on Interim/Proposed dividend 162,405 73,082
1,517,254 1,057,045
79
Britannia Annual Report 2008-09
Dividend income from equity shares, units of Long term 778 468
mutual funds (non-trade) Current 126,200 143,235
Bank and other interest (gross) Long term 16 14,353
Current 8,455 2,760
Foreign exchange gain, net 18,133 –
Profit on sale of fixed assets, net 1,782 3,265
Provisions and liabilities no longer required written back 59,776 17,425
Other receipts 93,791 80,944
387,176 334,144
21,190,636 16,929,035
80
Britannia Annual Report 2008-09
81
Britannia Annual Report 2008-09
(b) Subsidiaries, Joint Ventures and Associate Companies considered in the Consolidated Financial Statements
Subsidiary Companies:
Boribunder Finance & Investments Private Limited India 100.00% 100.00%
Flora Investments Company Private Limited India 40.53% 100.00%
Gilt Edge Finance & Investments Private Limited India 46.13% 100.00%
Ganges Vally Foods Private Limited India 51.00% 51.00%
International Bakery Products Limited India 100.00% 100.00%
J B Mangharam Foods Private Limited India 100.00% 100.00%
Manna Foods Private Limited India 100.00% 100.00%
Sunrise Biscuit Company Private Limited India 96.85% 96.85%
Britannia and Associates (Mauritius) Private Limited Mauritius 100.00% 100.00%
Britannia and Associates (Dubai) Private Co. Limited Dubai, UAE 100.00% 100.00%
Al Sallan Food Industries Company SAOG Oman 65.46% 65.46%
Strategic Food International Co. LLC Dubai, UAE 70.00% 70.00%
Strategic Brands Holding Company Limited Dubai, UAE 70.00% 70.00%
Britannia Lanka Pvt. Ltd Srilanka 100.00% 100.00%
Daily Bread Gourmet Foods (India) Private Limited* India 75.00% 75.00%
Joint Ventures:
Britannia New Zealand Foods Private Limited India 51.00% 51.00%
Britannia New Zealand Holdings Private Limited Mauritius 50.00% 50.00%
Associates:
Klassik Foods Private LimitedIndia26.02%26.02%
Nalanda Biscuits Company LimitedIndia35.00%35.00%
* Pursuant to a change in control during the year, Daily Bread Gourmet Foods (India) Private Limited is
considered to be a subsidiary (Previous year: Joint venture).
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Britannia Annual Report 2008-09
The following Associate Companies/Firm are excluded from consolidation as they are not significant.
Name of the Company Country of incorporation
Britannia Sports (partnership firm) India
Vasana Agrex & Herbs Private Limited India
Snacko Bisc Private Limited India
The Financial Statements of Britannia and Associates (Mauritius) Private Limited, Britannia and Associates
(Dubai) Private Co. Limited, Al Sallan Food Industries Company SAOG, Strategic Food International Co.
LLC and Strategic Brands Holding Company Limited are for the period (January 2008 - March 2009) / fifteen
months ended 31 March 2009 which have been incorporated in the Consolidated Financial Statements of
Britannia Industries Limited.
The Financial Statements of Daily Bread Gourmet Foods (India) Private Limited, J B Mangharam Foods Private
Limited, Britannia and Associates (Mauritius) Private Limited, Britannia and Associates (Dubai) Private Co.
Limited, Britannia New Zealand Holdings Private Limited and Strategic Brands Holding Company Limited
have been incorporated in the Consolidated Financial Statements of Britannia Industries Limited based on
unaudited Financial Statements.
83
Britannia Annual Report 2008-09
Intangible assets
i) Intangible assets are stated at cost of acquisition less accumulated amortisation.
ii) Goodwill arising on consolidation represents the excess of cost to the Group of its investment in a subsidiary
company over the Group’s portion of net worth of the subsidiary, and is net of Capital Reserve.
Depreciation and amortisation
(i) Depreciation in respect of all the assets acquired upto 30 June 1984 is provided on written down value
method. For additions on or after 1 July 1984, straight line method has been used. Depreciation rates
are estimated by the Group and are as specified in the amended Schedule XIV of the Companies Act,1956,
except relating to vehicles which are depreciated over a period of five years. Assets costing upto Rs.5 are fully
depreciated in the year of addition. Computer software is amortised over a period of six years. Leasehold land
is amortised over the period of primary lease.
The assets identified and retired based on technical evaluation and held for disposal are stated at estimated
net realisable value.
In respect of assets held by Al Sallan Food Industries Company SAOG , Strategic Food International Co. LLC
and Daily Bread Gourmet Foods (India) Private Limited, the depreciation rates followed (based on estimated
useful life of assets) are different from the rates adopted by the Group. (Refer schedule D note (d)).
In respect of assets held by J B Mangharam Foods Private Limited and Ganges Vally Foods Private Limited,
depreciation is provided at rates calculated to write off the cost, less estimated residual value, of each asset
on a written-down-value basis over its expected useful life. The written down value of assets as on 31 March
2009 amounts to Rs.39,731 and Rs.33,772 (Previous year: Rs. 42,318 and 38,397) for J B Mangharam Foods
Private Limited and Ganges Vally Foods Private Limited respectively.
Goodwill arising on consolidation is evaluated for impairment periodically. (Also refer note j below)
Impairment of assets
The Group assesses at each Balance Sheet date whether there is any indication that an asset, including
intangible, may be impaired. If any such indication exists, the Group estimates the recoverable amount of the
asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which
the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount.
(j)
The reduction is treated as an impairment loss and is recognised in the Profit and Loss account.
Leases
Assets acquired under lease where the Group has substantially all the risks and rewards of ownership are
classified as finance lease. Such leases are capitalised at the inception of lease at lower of the fair value and
present value of minimum lease payments. Assets taken on finance lease are depreciated over its estimated
useful life or the lease term whichever is lower.
Assets acquired under lease where a significant portion of risks and rewards of ownership are retained by the
(k) lessor are classified as operating lease. Lease rentals are charged to Profit and Loss account on accrual basis.
Inventories
Inventories are valued at the lower of cost or estimated net realisable value, after providing for obsolescence,
where appropriate.
Raw materials, packing material and stores and spares are valued at cost, computed on a moving weighted
average basis. The cost includes purchase price, inward freight and other incidental expenses net of refundable
duties, levies and taxes where applicable.
Materials in process are valued at input material cost plus conversion cost as applicable.
Finished goods are valued at lower of net realisable value and prime cost, excise duty and other overheads
(l)
incurred in bringing the inventories to their present location and condition.
84
Britannia Annual Report 2008-09
In respect of J B Mangharam Foods Private Limited and Ganges Vally Foods Private Limited inventories are
valued at cost, computed under first-in-first-out basis. The value of Inventory as on 31 March 2009 amounts
to Rs.4,297 and Rs. 2,679 (Previous year: Rs. 4,341 and Rs. 2,665) for J B Mangharam Foods Private Limited
and Ganges Vally Foods Private Limited respectively.
(n) Investments
Long term investments are stated at cost. A provision for diminution is made to recognise a decline, other
than temporary, in the value of long term investments.
Income from royalty and services is accounted for based on contractual agreements.
Dividend income is accounted for in the year in which the right to receive the same is established.
Interest on investments is booked on a time-proportion basis taking into account the amounts invested and
the rate of interest.
The Financial statements of foreign operations treated as integral operations are translated in the same
manner as foreign currency transactions, described above. Exchange differences arising on such translation
are recognised as income or expense of the period in which they arise.
85
Britannia Annual Report 2008-09
In respect of non-integral foreign operations, the assets and liabilities, both monetary and non-monetary are
translated at the closing rates and income and expenses are translated at average rates and all the resulting
exchange differences are accumulated in foreign exchange fluctuation reserve until the disposal of the net
investment.
Deferred tax assets are recognised only if there is a reasonable or virtual certainty, as may be applicable,
that sufficient future taxable income will be available against which they can be realised. The carrying
amount of deferred tax assets is reviewed at each Balance Sheet date and reduced to the extent that it is
no longer probable that sufficient taxable income will be available to allow all or part of the deferred tax
asset to be utilised.
The Britannia Industries Limited Covenanted Staff Pension Fund Trust (BIL-CSPF) and Britannia
Industries Limited Officers’ Pension Fund Trust (BILOPF) were established by the Company to
administer pension schemes for its employees. These trusts are managed by the trustees. The Pension
scheme is applicable to all the managers and officers of the Company who have been employed up to
86
Britannia Annual Report 2008-09
the date of 15 September 2005 and any manager or officer employed after that date, if he has opted for
the membership of the scheme. The Company makes a contribution of 15% of salary in respect of the
members each month to the trusts. On retirement, subject to the vesting conditions as per the rules of
the trust, the member becomes eligible for pension, which is paid from annuity purchased in the name
of the member by the trusts. (Refer note 11)
In case of Al Sallan Food Industries Co SAOG, provision for non-Omani employee terminal benefits,
which is an unfunded defined benefit retirement plan, is made in accordance with Oman Labour Law
and is based on the liability that would arise if the employment of all employees were terminated at
the Balance Sheet date and in case of Strategic Food International Co. LLC, provision for staff terminal
benefits is calculated in accordance with the UAE Federal Labour Law and is based on the liability that
would arise if the employment of all the Company’s staff were terminated on the Balance Sheet date.
This difference in accounting policy from the Group’s accounting policy as mentioned above does not
have a material impact on the financial statements.
A disclosure for contingent liabilities is made where there is a possible obligation or a present obligation that
may probably not require an outflow of resources. When there is a possible or a present obligation where the
likelihood of outflow of resources is remote, no provision or disclosure is made.
87
Britannia Annual Report 2008-09
Banking facilities given to Name of the bank 31 March 2009 31 March 2008
Britannia New Zealand Foods Private Limited Citi Bank 294,000–
(d) The Company has furnished the following letter of comfort/letter of awareness:
Banking facilities given to Name of the bank 31 March 2009 31 March 2008
Britannia New Zealand Foods Private Limited HSBC Bank 22,050294,000
88
Britannia Annual Report 2008-09
The difference between minimum lease payments and the present value of minimum lease payments of
Rs. 3,445 (Previous year: Rs. 3,044) represents interest not due.
The lease liability is secured by the relevant vehicles acquired under lease.
There is no contingent rent for operating and finance leases.
Accounting for taxes on income disclosure as per AS 22 - “Accounting for Taxes on Income.” Major components of
4 deferred tax assets and liabilities on account of timing differences are as follows:
89
Britannia Annual Report 2008-09
(a) and (b) represent estimates made for probable liabilities arising out of pending disputes/litigations with
various regulatory authorities. The timing of the outflow with these matters depends on the position of law and
the settlement of which is not expected to exceed 2-3 years in most cases.
(c) represents provisions made for probable liabilities/ claims arising out of commercial transactions with vendors/
others. Further disclosures as required in AS 29 are not made since it can be prejudicial to the interests of the
Group.
Earnings Per Share
6
31 March 2009 31 March 2008
(a) Net profit attributable to the equity shareholders 1,514,848 1,774,389
(b) Weighted average number of equity shares outstanding during
the year 23,890,163 23,890,163
(c) Effect of potential equity shares on employee stock option
outstanding
(d) Weighted average number of equity shares outstanding for 1,703 –
computing diluted earnings per share {(b)+(c)}
Nominal value of Equity shares (Rs.) 23,891,866 23,890,163
Basic earnings per share (Rs.) 10 10
Diluted earnings per share (Rs.) 63.41 74.27
63.40 74.27
7 Based on guiding principles given in AS 17 - “Segment Reporting”, the primary business segment of the Group
is foods which comprises biscuit, bread, cake, suji toast, dairy products, etc. As the Group operates in a single
primary business segment, disclosure requirements are not applicable. The Group primarily caters to the domestic
market and export sales are not significant. The Group has Rs. 1,816,337 (Previous year: Rs. 1,396,673) of
segment assets which are located outside India.
Related party disclosures under Accounting Standard 18
8 Relationships
1. Ultimate Holding Company ABI Holdings Limited (ABIH), UK, The Bombay Burmah Trading
Corporation Ltd. effective from 14 April 2009
Holding Company Associated Biscuits International Limited (ABIL), UK
2. Fellow Subsidiary Companies Valletort Enterprises Pte Limited, Singapore
Spargo Enterprises Pte Limited, Singapore
Nacupa Enterprises Pte Limited, Singapore
Dowbiggin Enterprises Pte Limited, Singapore
Bannatyne Enterprises Pte Limited, Singapore
3. Other related parties with whom transactions have taken place during the year
- Joint Venture Companies Daily Bread Gourmet Foods (India) Private Limited (Refer note 3 below)
Britannia New Zealand Foods Private Limited
Britannia New Zealand Holdings Private Limited, Mauritius
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Britannia Annual Report 2008-09
Remittance of dividend
Associated Biscuits International Limited Holding Company 194,056 161,714
Others Fellow Subsidiary 25,062 20,884
Company
Total 219,118 182,598
Purchase of finished goods/consumables and ingredients
Nalanda Biscuits Company Limited Associate 128,569 –
Britannia New Zealand Foods Private Limited Joint Venture 1,582 1,279
Total 130,151 1,279
91
Britannia Annual Report 2008-09
Remuneration
Ms. Vinita Bali KMP 42,095 36,606
Loan repaid by
Ms. Vinita Bali KMP 168 163
Share of Current year profit/(loss)
Klassik Foods Private Limited Associate (282) 969
Nalanda Biscuits Company Limited Associate 1,382 (556)
Britannia Sports (partnership firm) Associate (6) (6)
Total 1,094 407
Guarantees/collaterals/contingent liability
Britannia New Zealand Foods Private Limited Joint venture 294,000 –
92
Britannia Annual Report 2008-09
Letters of Awareness
Britannia New Zealand Foods Private Limited Joint venture 22,050 294,000
Daily Bread Gourmet Foods (India) Private Limited Joint Venture – 19,600
Total 22,050 313,600
1. The above does not include related party transactions with retiral funds, as key management personnel who are
trustees of the funds cannot individually exercise significant influence on the retiral funds transactions.
The above information has been determined to the extent such parties have been identified on the basis of
2. information available with the Group and relied upon by the auditors.
Pursuant to a change in control during the year, Daily Bread Gourmet Foods (India) Private Limited is considered
3. to be a subsidiary (Previous year: Joint venture). Accordingly, the current year figures have not been disclosed.
9 Employee Benefits
(a) Post Retirement Benefit- Defined Contribution Plans
The Company has recognised an amount of Rs.58,797 (Previous year: Rs.63,389) as expenses under the
defined contribution plans in the Profit and Loss account for the year:
* Having regard to the assets of the Fund and the return on the investments, the Company does not expect
any deficiency in the foreseeable future.
93
Britannia Annual Report 2008-09
Notes:
(i) The discount rate is based on the prevailing market yield on Government Securities as at the Balance
Sheet date for the estimated term of obligations.
(ii) The expected return on plan assets is determined considering several applicable factors mainly the
composition of the plan assets held, assessed risks of asset management, historical results of the return
on plan assets and the Group’s policy for plan asset management.
(iii) The estimate of future salary increases considered in actuarial valuation takes into account inflation,
seniority, promotion and other relevant factors such as supply and demand in the employment market.
(iv) The disclosure above includes amounts for both Britannia Industries Limited Covenanted Staff’ Gratuity
Fund and Britannia Industries Limited Non Covenanted Staff’ Gratuity Fund and amounts relating to
other group companies.
94
Britannia Annual Report 2008-09
10 The disclosure required under AS 27 - “Financial Reporting of Interests in Joint Ventures” has been given
below:
825,300 786,776
870 4,880
826,170 791,656
EXPENDITURE
Cost of materials 672,174 645,478
Staff cost 20,859 42,101
Operating and other administration expenses 123,147 128,235
Depreciation and amortisation 363 14,119
816,543 829,933
9,627 (38,277)
Profit/(Loss) before exceptional items – –
Exceptional items 9,627 (38,277)
Profit/(Loss) before tax 867 1,112
Income tax - Fringe benefit tax 8,760 (39,389)
Profit/(Loss) after tax (Refer note 1 below)
Contingent Liabilities
Cheques discounted not realised
Bank guarantee 24,775 23,469
Share in Provisions 140 458
Sales tax and other dues
Opening
Utilisation 12 12
Closing – –
12 12
95
Britannia Annual Report 2008-09
Notes:
1. The current year’s share of the profits / (losses) of the Joint Ventures are adjusted to the Profit and Loss
account.
2. Pursuant to a change in control during the year, Daily Bread Gourmet Foods (India) Private Limited is
considered to be a subsidiary (Previous year: Joint venture). Accordingly, the current year figures have not
been disclosed.
11 In April 2007, the Commissioner of Income Tax (CIT), Kolkata issued a notice to the Company’s Covenanted Staff
Pension Fund (BILCSPF) asking it to show cause why recognition granted to the Fund should not be withdrawn
for refunding in the year 2004, the excess contribution of Rs. 121,199 (Previous year: Rs. 121,199) received by
it in earlier years. The Single Judge of the Calcutta High Court, on a writ petition, granted a stay restraining the
CIT from proceeding with the show cause notice but with a direction to the Company to deposit Rs. 121,199
(Previous year: Rs. 121,199) (included in Deposits under Schedule I) with a nationalized bank in the name of the
Fund. On appeal, the Division Bench of the Calcutta High Court disposed off the writ petition pending before the
Single Judge. The Fund filed a Special Leave Petition before the Supreme Court against the order of the Division
Bench. The Supreme Court at its hearing on 12 May, 2008 has set aside the order of the Division Bench of the
Calcutta High Court. As a condition of the stay order granted, the Company has, under protest, made the deposit
as per the direction of Hon’ble Calcutta High Court.
Pursuant to the directions of the Madras High Court, the CIT, Kolkata passed orders rejecting the deeds of
variation submitted in May 2005 by the Pension Fund on technical grounds. The Company has preferred an
appeal before the Central Board of Direct Taxes, New Delhi challenging the order.
A suit has been filed in the City Civil Court, Bangalore, where the Hon’ble judge has passed interim orders on
1 January 2009 and 10 February 2009 directing the Funds to pay pension to the members in accordance with the
Funds’ calculations. The Funds have since complied with the said order.
The Britannia Industries Limited Pensioners Welfare Association had also filed a writ petition in the Hon’ble
Calcutta High Court seeking various reliefs relating, inter alia, to their pension benefits. In April 2009, the
association has withdrawn this case.
The Company believes, based on current knowledge and after consultation with eminent legal counsel that the
resolution of the matter will not have material adverse effect on the financial statements of the Company.
12 With respect to Al Sallan Food Industries Co SAOG, the Company has incurred a tax loss during the year. The tax
loss incurred during the five year exemption period (expired on 31 December 2001) amounting to Rs. 807,237
will be available for set off against future taxable profits without any time limit. The tax loss estimated as incurred
during the period from 1 January 2002 to 31 December 2008 of Rs. 620,160 (Previous year Rs. 436,531) is eligible
to be carried forward for not more than five years unless the Company’s tax exemption is further renewed. The
tax assessments up to 2003 have been completed by the Secretariat General for Taxation. The management
considers that any amounts that may become payable upon finalisation of the tax for the years 2004 to 2007
would not be material to the Company’s financial position as at the date of Balance Sheet. The future tax benefit
from carried forward losses together with other timing differences amounting to Rs. 122,281 (Previous year
Rs. 123,748) is not recognised as a deferred tax asset during the current year. The management has decided not
to consider the potential deferred tax benefit because of the uncertainty relating to the extension of the period of
tax exemption and until future profitability can be consistently demonstrated.
96
Britannia Annual Report 2008-09
(ii) Rs. 1,952 capital subsidy received from West Bengal Industrial Development Corporation Ltd. under The
West Bengal Incentive Scheme,2000 by Ganges Vally Foods Pvt. Ltd.
14 Pursuant to Labour Commissioner’s Order under section 25O(1) of the Industrial Disputes Act, 1947, production
at the Company owned facility was closed effective 24 March 2004. As per the Order of the Mumbai High Court,
the Company as on the date of the Balance Sheet has paid an amount of Rs.58,317 (Previous year: Rs. 58,317)
equivalent to eligible compensation under section 25O(1) of the Industrial Disputes Act, 1947. Further, based on
the appeal filed by the worker union, the Industrial Tribunal has reversed the Order of the Labour Commissioner.
The Company has preferred an appeal against the Order of the Industrial Tribunal. As per interim direction of the
Mumbai High Court, the Company has paid Rs. 12,799 (Previous year: Rs. 13,320) as compensation equivalent to
50% of the last drawn amount for the period from 1 April 2008 to 19 November 2008 and 70% of the last drawn
amount for the period from 20 November 2008 to 31 March 2009. The Company has made the above payments
as compensation under the Industrial Disputes Act, 1947. The case is currently pending in the High Court.
15 Derivative contracts
(i)
Foreign currency Forward Contracts
The Company has entered into foreign exchange forward contracts for hedging the foreign exchange
fluctuation risks on payables, which has been accounted for in line with AS11 - “The effects of changes in
foreign exchange rates”. Accordingly, the amount receivable of Rs. 229,651 (Previous year: Rs. Nil) and
foreign currency payable of Rs. 200,772 (Previous year: Rs. Nil), in the subsequent years, relating to foreign
exchange forward contracts for hedging have been netted off and disclosed under ‘Loans and advances’
(Refer Schedule J).
The Company has designated certain Foreign Exchange Forward Contracts outstanding as on 31 March
2009 as Hedge of highly probable forecasted transaction. On that date, the Company had forward contracts
to sell USD. 2,091,820 (Previous year: USD. 981,934). As at the year end the unrealised exchange loss of
Rs. 1,102 (Previous year: Rs. Nil) arrived on a mark to market basis has been accounted for.
(ii) Other derivative contracts
For all derivative contracts, a mark to market valuation has been obtained and any gain/loss thereon has been
accounted for in line with the ICAI notification issued in March 2008 in relation to such transactions.
16 Provisions for deferred tax for the current year are after provision in respect of earlier years of Rs. 11,246 (Previous
year: Rs.Nil).
17 Figures in Rupees have been rounded off to the nearest thousand, unless otherwise stated.
18 Previous year’s figures have been regrouped/rearranged, wherever necessary.
97
Britannia Annual Report 2008-09
The Ministry of
STATEM Country
Corporate Affairs, India India India India India India India India India India India India India OmanDubai
Mauritius
Sri Lanka Dubai -JAFZA,
UAE
ENThas exempted the
Government of India
Dubai -JAFZA,
UAE
PURSUA
Company from
Profit ProposedAfter
furnishing the annual
NT TO Dividend
report of the following - - - - - - - - - - - - - - - - - - -
Taxation
EXEMPT
Subsidiaries/Associates
/Joint Ventures. This
ION AnnualReport contains (1,536) 132 140 306 2,468 (3,893)(409) (352) (35,329)
(247,671)45 52 46 (68,898)
(269,317)
(65,905)
(4,651) (27,858) (480)
Consolidated Financial
RECEIV
Statements of the
ED Company and its
Subsidiaries/ ProvisionforTaxation
502 (4) 1 1,273 736 124 742 2,367 1,700 4,237 24 27 23 - - 79 - - -
UNDER
Associates/ Joint
Ventures prepared in
SECTIO
accordance with the
N 212(8)
relevant Accounting
Standards andAverage
the Turnover Profit128 141 1,579 3,204 (3,769)333 2,015 (33,629)
(243,434)69 79 69 (68,898)
(269,317)
(65,826)
(4,651) (27,858) (480)
OF THE Before
samehas beenexchange
duly (Net Sales
COMPA
audited by the Statutory Taxation
Auditors. The annual
rate for
NIESaccounts of the + Other 167 174 96,855110,045
131,984
30,444341,012
1,619,753
162,843 83 118 81 730,475
1,578,137
121,239
27,762 - -
Profit &
ACT,following
Subsidiaries/Associates Income)
Loss a/c1.00
1956/Joint Ventures and the
related information will
1,083
(1,034)
be made available to 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 115.7012.15 0.4344.77 44.77 44.77
the investorsof the
Company on request
and will also be kept for
inspection in the
Investments 24,010 5,673 5,400 - 33 998 1,300 - - - 1,012 1,012 1,051 - - - 22,817 570,656 -
registered office of the
Company and
subsidiaries.
Rs. ’000
380 371 14,76977,33964,61610,060192,710
673,517
529,900 11 11 11 961,020
1,022,228
128,709
708,955 629,316 1,281
TotalLiabilitiesexcludingshareh
oldersfunds34,233
Closingexchangerate 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 131.3113.76 0.4450.72 50.72 50.72
forBalanceSheet1.00
ReportingCurrency
INR INR INR INR INR INR INR INR INR INR INR INR INR OMR AED LKRUSD USD USD
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
98
Britannia Annual Report 2008-09
SIGNIFICANT RATIOS
2008-09 2007-08
Measures of Investment
Shareholders’ funds
Measures of Performance
Profit margin Profit before tax & exceptional item % 8.0 8.6
Stock
Current liabilities
99
Britannia Annual Report 2008-09
Rs. Million
As at / Year ended 31 March 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Assets employed
Fixed assets less Depreciation & Amortisation 1,306 1,588 1,632 1,481 1,283 1,338 1,516 2,144 2,507 2,839
Investments 1,470 2,156 3,104 2,969 2,913 3,301 3,599 3,200 3,808 4,231
Net current assets 65 257 592 747 43 (485) 309 596 2,072 1,161
Miscellaneous Expenditure 122 163 217 260 463 342 161 256 232 266
2,963 4,164 5,545 5,457 4,702 4,496 5,585 6,196 8,619 8,497
Financed by
Equity shares 279 279 269 259 251 239 239 239 239 239
Reserves & Surplus 1,586 2,123 3,430 3,653 4,059 4,196 5,252 5,909 7,319 8,006
2,963 4,164 5,545 5,457 4,702 4,496 5,585 6,196 8,619 8,497
Sales 11,698 13,325 14,510 13,491 14,705 16,154 18,179 23,171 26,170 31,429
Profit before Depreciation, Amortisation and Tax 962 1,369 1,630 1,722 2,251 2,645 2,218 1,514 2,536 2,866
Depreciation and Amortisation 172 189 240 261 224 190 217 253 291 335
Profit before tax and Exceptional items 790 1,180 1,390 1,461 2,027 2,455 2,001 1,261 2,245 2,531
Profit before tax * 771 1,139 2,591 1,473 1,844 2,203 2,007 1,184 2,323 2,325
Taxation 261 434 559 482 656 715 543 108 413 521
Profit after tax 510 705 2,032 991 1,188 1,488 1,464 1,076 1,910 1,804
Dividend 125 153 201 251 272 334 358 358 430 956
Retained earnings 371 489 1,564 692 910 1,117 1,056 657 1,407 686
100
Notes
Notes