BRITANNIA INDUSTRIES

LIMITED
-SUBALAKSHMI V
INTRODUCTION
Britannia industries limited is an indian food products
corporation based in bangalore,India.
It is the first bakery company in india to remove
transfats from its biscuits.
Britannia innovates for strong presence in health and
nutrition space.
Vision& mission
Vision-To dominate the food and beverage market in
india with a distinctive range of “tasty yet healthy”
britannia brands by making every indian a britannia
consumer.
mission-we want to be part of our consumer at
home,out of home, a natural part of his life.
Company profile
It was establised in 1892 in kolkata ,west bengal with
an investment of Rs.265 by Bhavya chugh.
Chairman-Mr. Nusli N Wadia
Operates in two business segments:
-bakery products such as biscuits,bread,
cakes and rusk.
-dairy products such as milk, butter, cheese
ghee, and curd.
BRITANNIA- Balance sheet
Balance sheet
BRITANNIA –Balance sheet analysis:
The company's current liabilities during FY20 stood at
Rs 26 billion as compared to Rs 19 billion in FY19,
thereby witnessing an increase of 38.6%.
Long-term debt stood at Rs 8 billion as compared to
Rs 619 million during FY19, a growth of 1137.2%.
Current assets rose 4% and stood at Rs 37 billion,
while fixed assets rose 7% and stood at Rs 19 billion in
FY20.
Overall, the total assets and liabilities for FY20 stood
at Rs 78 billion as against Rs 62 billion during FY19,
thereby witnessing a growth of 26%.
Ratio analysis
Ratio analysis is a quantitative procedure of
obtaining a look into a firm's functional efficiency,
liquidity, revenues, and profitability by analysing its
financial records and statements. Ratio analysis is a
very important factor that will help in doing
an analysis of the fundamentals of equity.
Liquidity ratio
A liquidity ratio is a type of financial ratio used to
determine a company’s ability to pay its short-term
debt obligations. The metric helps determine if a
company can use its current, or liquid, assets to cover
its current liabilities.
Liquidity ratio
Interpretation

 A ratio of 1 means that a company can exactly pay off all its
current liabilities with its current assets. A ratio of less
than 1 (e.g., 0.75) would imply that a company is not able
to satisfy its current liabilities.
A ratio greater than 1 (e.g., 2.0) would imply that a
company is able to satisfy its current bills. In fact, a ratio of
2.0 means that a company can cover its current liabilities
two times over. A ratio of 3.0 would mean they could cover
their current liabilities three times over, and so forth.
Current ratio:

The current ratio is a liquidity ratio that measures a

company's ability to pay short-term obligations or
those due within one year. It tells investors and
analysts how a company can maximize the 
current assets on its balance sheet to satisfy its current
debt and other payables.
Current Ratio=Current assets/Current liabilities​
Current ratio
Interpretation

The company's current ratio deteriorated and stood at

1.4x during FY20, from 1.9x during FY19. The current
ratio measures the company's ability to pay short-term
and long-term obligations.
Current ratio during 2021-2020 is decreased.
Quick ratio:
The quick ratio is an indicator of a company’s short-
term liquidity position and measures a company’s
ability to meet its short-term obligations with its most
liquid assets.
 Quick Ratio = (Current Assets – Inventories ) /
Current Liabilities. 
Quick ratio
Interpretation

If a company has quick ratio of 1, then it’s able to pay

its current debts without selling its long term assets.
Britannia industries Limited is maximum in 2020-2019
is 1 and minimum in 2021-2020 The Britannia Limited
owns more quick assets than current Liabilities.
Leverage ratio
A leverage ratio is any one of several financial
measurements that look at how much capital comes in
the form of debt (loans) or assesses the ability of a
company to meet its financial obligations. The
leverage ratio category is important because
companies rely on a mixture of equity and debt to
finance their operations, and knowing the amount of
debt held by a company is useful in evaluating
whether it can pay off its debts as they come due.
Leverage ratio
A leverage ratio is any one of several financial
measurements that assesses the ability of a company to
meet its financial obligations.
A leverage ratio may also be used to measure a company's
mix of operating expenses to get an idea of how changes in
output will affect operating income. 
Common leverage ratios include the debt-equity ratio,
equity multiplier, degree of financial leverage, and
consumer leverage ratio.
Banks have regulatory oversight on the level of leverage
they are can hold.
Profitability ratio
Profitability ratios are financial metrics used by
analysts and investors to measure and evaluate the
ability of a company to generate income (profit)
relative to revenue, balance sheet assets, operating
costs, and shareholders’ equity during a specific period
of time. They show how well a company utilizes its
assets to produce profit and value to shareholders.
Profitability ratio
Interpretation

A higher ratio or value is commonly sought-after by

Britannia company, as this usually means the business
is performing well by generating revenues, profits, and
cash flow.
Profitability ratio is increased in 2021-2020.
Working capital:

Working capital, also known as net working capital

(NWC), is the difference between a company’s 
current assets, such as cash, accounts receivable
(customers’ unpaid bills), and inventories of raw
materials and finished goods, and its current liabilities
, such as accounts payable.
Working Capital = Current Assets – Current
Liabilities.
Working capital:
Interpretation

Britannia’s working capital is maximum in the year

2019 – 2018 and minimum in the year 2021-2020that
means its operational efficiency decreased in last year.
Financial ratios
CONCLUSION

Sales show the increasing trend in each year.

In all the five years the current ratio is less than the ideal
ratio 2:1. Quick ratio is also less than the ideal ratio of 1:1 in
those years.
Performance is good in terms of profitability.
 Generating good earnings on capital employed.
Has sufficient resources to meet its tax and interest expenses.
Does not have sufficient current assets to meet current
liabilities.
Use of debt capital is low and it is decreasing in each year.