COMPARATIVE BALANCE SHEET of B

Year ending Mar ' 09

I.Sources of funds
Owner's fund
Equity share capital Share application money Preference share capital Reserves & surplus 23.89 800.65 2.2 22.97

Loan funds
Secured loans Unsecured loans

Total

849.7

II. Application of funds

Fixed assets
Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress 511.5 233.67 277.84 6.02 423.1 553.66 437.55 116.11 26.64

Investments
Net current assets Current assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written

Total Notes:
Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity sharesoutstanding (Lacs)

849.7

423.07 2.15 329.05 238.9

COMPARATIVE PROFIT N LOSS A/c or INCOME ST

Mar ' 09

A] Income
Operating income

3,112.38
1,917.22 302.83 96.02 434.73 137.4 -

B] Expenses
Material consumed Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised

B] Cost of sales D] Operating profit

Other recurring income

2,888.20 224.18
24.23

Adjusted PBDIT
(+)Financial expenses (+)Depreciation (+)Other write offs

248.41
16.01 33.46 -

Adjusted PBT
(-)Tax charges

198.95
52.12

Adjusted PAT
(+)Non recurring items Other non cash adjustments

146.83
7.15 26.42

Reported net profit Earnings Before Appropriation

(-)Equity dividend (-)Preference dividend (-)Dividend tax

180.4 240.4
95.56 16.24

Retained earnings

128.6

RATIO ANALYSIS

I. BALANCE SHEET RATIOS

1)CURRENT RATIO:CURRENT RATIO= CURRENT ASSETS CURRENT LIABILITIES

In 2008-09 , Current Ratio of Britannia Industries Ltd was 1.56 and in 2009-10,it went to 1.2 it's going down which shows that(1. Unsatisfactory liquidity/solvency position of the company which means if current assets do no able to pay its Current Liabilities. 2. Low level of current assets causing loss of sale if stock is not available or credit is not given to 3. Over trading (i.e High turnover as compared to the low level of assets employed)

2) QUICK RATIO:QUICK RATIO= CURRENT ASSETS - STOCK CURRENT LIABILITIES - BANK O/D

In 2008-09,the Liquid Ratio of Britannia Industries Ltd was 0.67 and it went to 0.65 next yea As the standard Ratio is 1:1,companys performance is low i.e 1. The Concern may not be able to pay its Quick liabilities 2. Low cash/bank balances causing loss of sale if raw material cannot be purchased. 3. Excess investment without keeping back adequate liquid funds.

3) STOCK TURNOVER RATIO:STOCK TURNOVER RATIO= COST OF GOODS SOLD AVERAGE STOCK

In 2008-09,the inventory turnover Ratio was 9.98 and it went to 14.54 on 2009-10. it means t There is no standard stock turnover ratio.The companies use to compare it with previous years p So if we compare britannia industries ratio with its past record,we can found that1. Stock is being turned into sales at a fast speed during the year. 2. Same volume of sales is generated from less stocks 3. Efficient Management of Inventory

II. REVENUE STATEMENT RATIOS:1) GROSS PROFIT RATIO:-

GROSS PROFIT RATIO= GROSS PROFIT X 100 SALES

In 2008-09,the Gross Profit Ratio was 7.85 and it went to 6.12 next year.As there is no standa GP ratios of other concern.The Ratio if we compare it shows that1)failure in managing purchases,production,sales and inventory 2)Loose control over direct costs of labour,fuel,freights etc. 3)Lower productivity and lower margin to meet other expenses

2) OPERATING RATIO:-

OPERATING RATIO= COST OF GOODS SOLD + OPERATING EXPENSES X 100 SALES

In 2008-09,the Operating Ratio was 8.97 and it went to 7.2 next year.It indicates the cost of E its standard ratio based on past GP ratios or GP ratios of other concern.The Ratio if we compar 1) High efficiency in managing the Operations of the concern like purchases made at lower prices good control of direct cost of labour,fuel,freight etc. 2) A very good Margin available to meet non-operating Expenses.

3) NET PROFIT RATIO:NET PROFIT RATIO= NET PROFIT BEFORE TAX X 100 SALES

In 2008-09,the Net profit Ratio was 7.31 and it went to 5.75 next year.It indicates the relation company has to determine its standard ratio based on past NP ratios or NP ratios of other conce 1) Inefficiency in managing its activities like trading.production,financing and investment. 2) unsatisfactory control over operating as well as non operating costs 3) unusual losses likeloss by fire,flood etc. 4)Low increase in the net worth or the proprietors funds. 5)weak capacity of the concern to face bad economic situation.

III. COMPOSITE RATIOS:1) DEBT EQUITY RATIO:DEBT EQUITY RATIO= BORROWED FUNDS PROPRIETORS FUNDS

In 2008-09 , Debt Equity Ratio of Britannia Industries Ltd was nothing as there was no borrowed the Standard Ratio is 2:1 and compared to last year, it's lower thanthe standard which shows tha

1) A very satisfactory safety margin for the long term creditors. 2) More dependence on Equity 3) Smaller burden of fixed interest payment 4) Ease of raising additional loans.

2) PROPRIETORY RATIO:PROPRIETORY RATIO= PROPRIETORS FUND X 100 TOTAL ASSETS

In 2008-09 , PROPRIETORY Ratio of Britannia Industries Ltd was 87.69 and in 2009-10,it we A proprietory Ratio of 65% is regarded as standard ratio.As in both years its more than the stan 1) A very good long term solvency position as own funds are less than borrowed funds 2) Less dependence on Own funds.

3) DIVIDENT PAYOUT RATIO:DIVIDENT PAYOUT RATIO= EQUITY DIVIDENT X 100 PROFIT FOR EQUITY SHAREHOLDERS

In 2008-09,the Divident Payout ratio Ratio was 26.34 and it went to 61.97 next year.As ther ratios based on their own past ratio or ratios of other concern.The Ratio if we compare it shows 1) A very high divident paid to make the equity shareholders very happy 2) but profits retained may not be sufficient for financing future growth 3) Scope to attract fresh funds from short term investors. 4) good price for equity shares.

The Other Ratios are as follows:RATIO'S Adjusted EPS (Rs) Adjusted cash EPS (Rs) Reported EPS (Rs) Reported cash EPS (Rs) Dividend per share Operating profit per share (Rs) Book value (excl rev res) per share (Rs) Book value (incl rev res) per share (Rs.) Net operating income per share (Rs) Free reserves per share (Rs) Adjusted cash margin (%) Adjusted return on net worth (%) Mar ' 09 61.46 75.46 75.51 89.52 40 93.84 333.99 333.99 1,302.79 322.15 5.74 18.4

Reported return on net worth (%) Return on long term funds (%) Earning retention ratio Cash earnings retention ratio Adjusted cash flow time total debt Financial charges coverage ratio Fin. charges cov.ratio (post tax) Material cost component (% earnings) Selling cost Component Exports as percent of total sales Import comp. in raw mat. consumed Long term assets / total Assets Bonus component in equity capital (%)

22.6 25.29 23.86 37.99 0.13 15.52 14.36 62.22 13.96 2.22 0.04 0.55 91.82

CASH FLOW STATEMENT

Profit before tax Net cashflow-operating activity Net cash used in investing activity Netcash used in fin. activity Net inc/dec in cash and equivlnt Cash and equivalnt begin of year Cash and equivalnt end of year Mar ' 09 Mar ' 08 232.52 232.26 246.78 63.13 12.28 -130.31 -145.77 53.08 113.28 -14.1 224.81 238.91 338.09 224.81

E SHEET of BRITANNIA Ltd

Rs. in crores
Year ending Mar ' 08 Absolute Increase or Decrease Percentage Increase or Decrease( %)

23.89 731.92 1.94 104.16

68.73

9.39%

0.26 -81.19

13.40% -77.95%

861.91

-12.21

-1.42%

453.18 212.19 240.99 9.69 380.83 577.48 370.31 207.17 23.23

58.32 21.48 36.85 -3.67 42.27 -23.82 67.24

12.87% 10.12% 15.29% -37.87% 11.10% -4.12% 18.16%

861.91

-12.21

-1.42%

380.81 2.93 169.55 238.9

42.26 -0.78 159.5

11.10% -26.62% 94.07%

or INCOME STATEMENT
Rs. in crores
Absolute Increase or Mar ' 08 Decrease Percentage Increase or Decrease (%) 20.27 22.60 23.62% 6.06% 19.69% 47.65%

2,587.86
1,563.79 244.96 90.53 363.2 93.06 -

524.52 353.43 57.87 5.49 71.53 44.34

2,355.54 232.32
24.07

532.66 8.14
0.16

22.61 3.50%
0.66

256.39
9.73 29.08 -

-7.98
6.28 4.38 -

-3.11
64.54 15.06 -

217.57
41.26

-18.62
10.86

-8.56
26.32

176.31
-3.95 18.64

-29.48
3.2 7.78

-16.72
-0.81 41.74

191 251
43 7.31

-10.6 -10.6
52.56 8.93

-5.55 -4.22
122.23 122.16

200.69

-72.09

-35.92

nd in 2009-10,it went to 1.27. As the Standard Ratio is 2:1 and compared to last year,

means if current assets do not realise their full value i.e '2' , the company may not be )

ble or credit is not given to customers. sets employed)

nd it went to 0.65 next year.Though there is not much difference as compared to both years.

be purchased.

4.54 on 2009-10. it means that in 2008-09,the stock was converted into sales 9.98 times.

pare it with previous years performance or ratio of other concerns in the same industry. n found that-

xt year.As there is no standard Ratio,company has to determine its standard ratio based on past GP ratios or

nd inventory

er expenses

TING EXPENSES X 100

ear.It indicates the cost of Expenses.As there is no standard Ratio,company has to determine cern.The Ratio if we compare it shows thatrchases made at lower prices,optimum level of production,good inventory management and

year.It indicates the relationship between net profit and sales.As there is no standard Ratio, or NP ratios of other concern.The Ratio if we compare it shows thatncing and investment.

ng as there was no borrowed fund and in 2009-10,it was 0.03. As he standard which shows that-

87.69 and in 2009-10,it went up to 97.03.

years its more than the standard ratio which shows that borrowed funds

AREHOLDERS

o 61.97 next year.As there is no standard Ratio,company has to determine atio if we compare it shows that-

Mar ' 08 73.8 85.98 79.95 92.12 18 97.24 306.65 306.65 1,083.23 294.86 7.86 24.06

26.07 29.99 71.47 75.51 0.51 26.34 23.61 59.76 14.03 0.44 0.09 0.52 91.82

GP ratios or