ANNUAL REPORT

2013-2014

INTRODUCTION

WHAT?

WHO?WHEN?

WHY?

Financial Highlights

Management discussion and

analysis 

MD&A is an integrated part of a company's annual financial statements. The purpose of the MD&A is to provide a narrative explanation, through the eyes of management, of how an entity has performed in the past, its financial condition, and its future prospects.

 

Importance Of Management Discussion And Analysis

A.Liquidity position of firm.B.Capital resources C.Positive and Negative trend D. Domestic and international markets risk E.Economic or government changes have

affected or might affect the companyF.  A summary of recent mergers or acquisitions

and how they affected performance is important to gaining an understanding of the company's current position.

Director report A statement by a company's directors

in its annual accounts giving the directors' opinion of the state of the company, and how much should be paid to people owning shares in the company.

Importance Of Director Report

Tells about financial result of company Quality standard of the company Promise and ethic of the company Dividend pay by the company to stack holder Corporate social responsibility Pension of the pensioner Tells about technology and foreign exchange Precaution for environment safety Particulars of employee Employee stock option scheme

REPORT OF COMPANY GOVERNANCE1. Company’s philosophy on code of corporate governance2. Board of directors3. Board of directors

• Audit committee• Remuneration / Compensation Committee• Nomination Committee• Share Transfer & Shareholders’ / Investors’ Grievance

and Ethics / Compliance Committee• Executive Committee of Board• Finance Committee• Innovation Committee• Corporate Social Responsibility (CSR) Committee

4. General body meetings5. Disclosures6. Means of communication7. General shareholder information

› Financial calendar› Book closure period› Dividend payment date› Listing on Stock Exchanges› Stock Code› Stock Price Data› Stock Performance› Investor Education and Protection Fund› Registrar and Transfer Agents

INDEPENDENT AUDITOR’S REPORT

1. Report on the financial statements

2. Management’s responsibility for the financial statements

3. Auditor’s responsibility

4. Opinion

Annexure of auditors report

PURPOSE OF FINANCIAL STATEMENTS:The objective of financial statements is to provide information about financial position , performance and changes in the financial position of enterpriseUSERS OF FINANCIAL STATEMENTS:1. Managers2. Share holders3. Prospective investors4. Financial institution5. Suppliers6. Customers7. Employees8. Competitors9. General public10. Governments

Benefits of preparation of profit and loss account:To pay exact income tax to income tax authoritiesTo know actual profit of a firmIt is mandatory for all the companies which are listed in stock exchangeIn limited companies dividend is declared as per availability of profit with the companywhen profit and loss account is prepared ?It can be prepared by business firm on any particular date It can be prepared monthly basis or quarterly basis or half yearly basis or annually basis

WHAT IS TRADING ACCOUNT ?Trading account is one of the financial statement prepared by company to show the result of buying and selling of goods and services during accounting period and it ascertains the gross profit or gross loss made by companyWHAT IS A PROFIT AND LOSS ACCOUNT ?Profit and loss account is one of the financial statementIt shows the financial performance of the companyIt is prepared to ascertain net profit or net loss made by company during accounting periodit is also called as income statement

In India there are two formats of preparing of the balance sheet:-1)      Horizontal format:- In horizontal format of balance sheet, the figures are shown in two parts of balance sheet as under:-Liabilities.Assets.2)      Vertical format:- In vertical format of balance sheet the figures are shown in two parts of balance sheet as under

Cash flow statementcash flow statement is an analytical reconciliation statement of difference in cash and bankBenefits of cash flow statementCash flow information is useful in assessing the ability of the enterprise to generate cash and cash equivalents and enables users to develop models to assess and compare the present value of the future cash flows of different enterprises.

Methods of cash flow statementDirect method Indirect methodCash flow from operating activities(DIRECT)

CASH FLOW FROM OPERATING ACTIVITIES (INDIRECT)

Cash flow from financing and investing activities:

LIST OF SUBSIDIARY COMPANIES OF BRITANNIA

IN “000S.NO NAME OF THE SUBSIDIARY COMPANY CAPITAL PROFIT AFTER TAX COUNTRY

1 BRITANNIA DIARY PVT. LTD 117800 106700 INDIA

2 SUNRISE BISCUIT COMPANY PVT.LTD 141995 225 INDIA

3 ALL SALLAN FOOD INDUSTRIES CO. SAOC 311040 (33404) OMAN

4 STARTEGIC FOOD INTL CO. LLC, DUBAI 317850 47423 DUBAI

5 BRITANNIA AND ASSOCIATES PVT. LTD , MAURITIUS

1459401 5683 MAURITIUS

6 BRITANNIA DIARY HOLDINGS PVT. LTD , MAURITIUS

443890 (8422) MAURITIUS

SIGNIFICANT RATIOSMEASUREMENT OF INVESTMENT

2013-14 2012-13

RETURN ON EQUITY

NET PROFIT/SHAREHOLDERS FUND % 43.3 36.7

BOOK VALUE PER SHARE

SHAREHOLDERS FUND/NO. OF EQUITY RATIOS RS 71.2 53.2

DIVIDEND COVER EARNINGS PER SHARE/DIVIDEND PER SHARE TIMES 2.2 2.0

MEASURES OF PERFORMANCE

PROFIT MARGIN PROFIT BEFORE TAX AND EXCEPTIONAL ITEMS/(REVENUE FROM OPERATIONS + OTHER INCOME)

% 8.9 5.9

DEBTORS TURNOVER SALE OF PRODUCTS/TRADE RECEIVABLES TIMES 118.2 73.3

STOCK TURNOVER SALE OF PRODUCTS/INVENTORIES(FINISHED GOODS+STOCK IN TRADE)

TIMES 41.8 40.7

STATISTICS

0

200

400

600

800

A Investments Other assets

580.12

279.6

7.83

642.88

372.99

161.96

Assets Employed

Rup

ees

in c

rore

s20132014

•A= Fixed assets less Depreciation and amortisation.

0

100

200

300

400

500

600

700

800

900

Equ

ity s

hare

s

Res

erve

s an

d su

rplu

s

Lean

fund

s23.91

612.5

215.48

23.99

829.47

0.45

Financed by

Rup

ees

in c

rore

s

20132014

0.00

1,000.00

2,000.00

3,000.00

4,000.00

5,000.00

6,000.00

7,000.00

Sal

es o

f pro

duct

s

A

Dep

reci

atio

n an

d am

oris

atio

n

B

Exc

eptio

nal i

tem

Pro

fit b

efor

e ta

x

Tax

Net

pro

fit

Div

iden

d

Tax

on d

ivid

end

C

5,649.66

389.26

57.08332.18

0

332.1898.31

233.87101.66 17.28 114.93

6347.85

71.467.3

86.3332.18

542.62

172.79

369.83 143.9124.46

201.46

Profits and appropriation

Rup

ees

in c

rore

s20132014

l A= Profit before depreciation, amortization, exceptional items and tax.l B= Profit before exceptional items and tax.l C= Profit for the year after dividend and tax.

THANK YOU