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DEGREE OF BBA (2008-11)





Mrs. Deepika Sharma Mayank Mittal

It is not a single man’s effort which is sufficient for the accomplishment

of a research. I acknowledge here the names of those people who have been
instrumental in preparation of my project.

I readily acknowledge my indebted to my parents whose support,

dedication and honest efforts have given me an immense help in doing this

It gives me immense pleasure to express my deep sense of gratitude and

appreciation to my external guidesMrs. Deepika Sharma and his team
whose constant encouragement and valuable suggestions gave back bone
support in completing this project.

I take the opportunity to thank my friend, Aakash jindal for motivating,

encouraging, guiding and supporting at every step and sparing his valuable
time for me.
Last but not the least I record my sincere thanks to all beloved and
respectable persons who helped me and could find any separate mention.
Above all I praise “GOD” the most beneficial, the most merciful that I have
been able to complete my training project successfully.

Mayank Mittal

I Mayank Mittal student of BBA VI sem. of Institute of Management

Studies hereby declare that this project report on “WORKING
CAPITAL MANAGEMENT” is written and submitted by me under the
guidance of Mrs. Deepika Sharma is my original work. The entire analysis
and conclusion of this report are based on the information which is collected
by me during the training period.
The empirical finding in the report are based on the data collected
myself while preparing this project. I have not copied any thing from any
source or other project submitted for the similar purpose, if any.

Mayank Mittal

It gives great pleasure to present on the topic of “Working Capital

Management” of Britannia industries limited. I have selected this topic
because to know about the relationship between current assets and current
As “Working Capital Management” holds an important place in the
theory of Finance. A large number of tools and techniques have been
developed in the past to insure optimal allocation of Working Capital
Management funds more than Eighty Percent of finance manager is spent in
dealing with day to day problem which are part & parcel of working capital
requirements of the enterprise. Efficient use of working capital has direct
bearing on profitability of an enterprise. It augments the productivity of the
investment in the fixed assets. Basic survival of the firm may be at stake if
adequate working capital is not available in time. It is essential to maintain
constant supply of working capital for healthy growth of an enterprise.
Management of working capital assumes added significance in the context
of small scale and medium sized industries in our country. Most of them
have weak financial base and limited access to the institutional finance.
Their risk capacity is also low. Working capital management deals with
management of each of the firm current assets in such way that is maximizes
the value of the firm.

In any economy, the financial sector plays a major role in the mobilization
and allocation of savings. In changing economic environment,
manufacturing industries have to become more competitive, they have to
keep their cost in check an efficient use of working capital would release the
funds locked in the current assets.
 Introduction About Britannia industries

• Company overview
• Company profile
• Board of directors
• History of Biscuits
• Company Products
• Achievement of company

 Introduction About Britannia industries Pantnagar unit

• Company profile
• Departments of Britannia Rudrapur
• Production in Rudrapur branch
• Principles of the company
• Objective of the Rudrapur branch
 Introduction about the topic-Working capital management
• Objectives of the study
 Research Methodology
• Method of Data collection
• Objective of Research
• Limitations
 Analysis & Findings
 Recommendations
 Conclusions
 Bibliography

The story of one of India’s favorite brands reads almost like a fairy tale.
Once upon a time, in 1892 to be precise, a biscuit company was started in a
nondescript house in Calcutta (now Kolkata) with an initial investment of
Rs. 295. The company we all know as Britannia today.

The beginnings might have been humble-the dreams were anything but.
By 1910, with the advent of electricity, Britannia mechanized its operations,
and in 1921, it became the first company east of the Suez Canal to use
imported gas ovens. Britannia’s business was flourishing. But, more
importantly, Britannia was acquiring a reputation for quality and value. As a
result, during the tragic World War II, the Government reposed its trust in
Britannia by contracting it to supply large quantities of “service biscuits” to
the armed forces.
As time moved on, the biscuit market continued to grow and Britannia
grew along with it. In 1975, the Britannia Biscuit Company took over the
distribution of biscuits from Parry’s who till now distributed Britannia
biscuits in India. In the subsequent public issue of 1978, Indian
shareholding crossed 60%, firmly establishing the Indian ness of the firm.
The following year, Britannia Biscuit Company was re-christened Britannia
Industries Limited (BIL). Four years later in 1983, it crossed the
Rs.100crores revenue mark.
On the operations front, the company was making equally dynamic
strides. In 1992, it celebrated its Platinum Jubilee. In 1997, the company
unveiled its new corporate identity – “Eat Healthy, Think Better” – and
made its first foray into the dairy products market. In 1999, the
“Britannia Khao, World Cup Jao” promotion further fortified the affinity
consumers had with ‘Brand Britannia’.
Britannia strode into the 21st Century as one of India’s biggest brands and
the pre-eminent food brand of the country. It was equally recognized for its
innovative approach to products and marketing: the Lagaan Match was
voted India’s most successful promotional activity of the year 2001 while
the delicious Britannia 50-50 Maska-Chaska became India’s most successful
product launch. In 2002, Britannia’s New Business Division formed a joint
venture with Fonterra, the world’s second largest Dairy Company, and
Britannia New Zealand Foods Pvt. Ltd. Was born. In recognition of its
vision and accelerating graph, Forbes Global rated Britannia ‘One amongst
the Top 200 Small Companies of the World’, and “The Economic Times”
pegged Britannia India’s 2nd Most Trusted Brand.
Today, more than a century after those tentative first steps, Britannia’s
fairy tale is not only going strong but blazing new standards, and that
miniscule initial investment has grown by leaps and bounds to crores of
rupees in wealth for Britannia’s shareholders. The company’s offerings are
spread across the spectrum with products ranging from the healthy and
economical Tiger biscuits to the more lifestyle-oriented Milkman Cheese.
Having succeeded in garnering the trust of almost one-third of India’s one
billion populations and a strong management at the helm means Britannia
will continue to dream big on its path of innovation and quality. And
millions of consumers will favor the results, happily ever after.
Registered office of Britannia Industries Limited is situated in West Bengal.
This company is registered under Companies Act, 1956.

Britannia Biscuits Company Limited was originally incorporated on 21st

March 1918 under Indian Companies Act under the name “The Britannia
Biscuits Company Limited” under section 21 of Companies Act and
approval of Central Government.

The main aim of the Company is to make available good and improved
quality biscuits to each and every part of the country.

The Company has got ISO14001certificate and it is ISO 22000 certified.

The Company was established at the Pantnagar branch on 1st April 2005
mainly for production with a production coverage area of approximately 20

The control of management is through Board of Directors.

The Company’s head and registered office and works place are located at
the below mentioned addresses:

Registered & Head office: - Britannia Industries Limited

5/1A, Hungerford Street
Kolkata- 700017
Works Places: - (a) Britannia Industries Limited
33, Industrial Area
Lawrance Road,
Delhi- 110035

(b) Britannia Industries Limited

Plot No.1, Sector- 1

Integrated Industrial Estate

Pantnagar, Rudrapur- 263153

(c) Britannia
Industries Limited
15, Taratola road,
Kolkata – 700088
Name Designation

Mr. Nusli Neville Wadia Chairman

Ms. Vinita Bali Managing Director

Mr. A.K.Hirjee Director

Dr. Ajai Puri Director

Mr. Avijit Deb Director

Mr. Jeh N Wadia Director

Mr. Keki Dadiseth Director

Mr. Nimesh N Kampani Director

Mr. Pratap Khanna Director

Mr. S.S.Kelkar Director

Mr. Raju Thomas Chief Financial Officer

Mr. P Govindan Company Secretary


Britannia –the ‘biscuit’ leader with a history-has withstood the tests of time.
Part of the reason for its success has been its ability to resonate with the
changes in consumer needs-needs that have varied significantly across its
100+ year epoch. With consumer democracy reaching new levels, the one
common thread to emerge in recent times has been the shift in lifestyles and
a corresponding awareness of health. People are increasingly becoming
conscious of dietary care and its correlation to wellness and matching the
new pace to their lives with improved nutritional and dietary habits. This
new awareness has seen consumers seeking foods that complement their
lifestyles while offering convenience, variety and economy, over and above
health and nutrition.
Britannia saw the writing on the wall. It’s “Swasth Khao Tan Man Jagao”
(Eat Healthy, Think Better) re-position directly addressed this new trend by
promising the new generation a healthy and nutritious alternative – that was
also delightful and tasty.
Thus, the new logo was born, encapsulating the core essence of Britannia –
healthy, nutritious, and optimistic – and combining it with a delightful
product range to offer variety and choice to consumers.

Sweet or Salty, Soft or Crunchy, Simple or Exotic, Everybody loves

munching on biscuits, but do they know how biscuits began? The history of
biscuits can be traced back to a recipe created by the Roman chef Apicius, in
which “a thick paste of fine wheat flour was boiled and spread out on a
plate. When it had dried and hardened it was cut up and then fried until
crisp, then served with honey and pepper.”
The word ‘Biscuit’ is derived from the Latin words ‘Bis’ (meaning
‘twice’) and ‘Coctus’ (meaning cooked or baked). The word ‘Biscotti’ is
also the generic term for cookies in Italian. Back then, biscuits were
unleavened, hard and thin wafers which, because of their low water content,
were ideal food to store.

As people started to explore the globe, biscuits became the ideal traveling
food since they stayed fresh for long periods. The seafaring age, thus,
witnessed the boom of biscuits when these were sealed in airtight containers
to last for months at a time. Hard track biscuits (earliest version of the
biscotti and present-day crackers) were part of the staple diet of English and
American sailors for many centuries. In fact, the countries which led this
seafaring charge, such as those in Western Europe, are the ones where
biscuits are most popular even today. Biscotti is said to have been a favorite
of Christopher Columbus who discovered America!
Making good biscuits are quite an art, and history bears testimony to that.
During the 17th and 18th Centuries in Europe, baking was a carefully
controlled profession, managed through a series of ‘guilds’ or professional
associations. To become a baker, one had to complete years of
apprenticeship – working through the ranks of apprentice, journeyman, and
finally master baker. Not only this, the amount and quality of biscuits baked
were also carefully monitored.
The English, Scotch and Dutch immigrants originally brought the first
cookies to the United States and they were called teacakes. They were often
flavored with nothing more than the finest butter, sometimes with the
addition of a few drops of rose water. Cookies in America were also called
by such names as “jumbles”, “plunkets” and “cry babies”.
As technology improved during the Industrial Revolution in the 19th
century, the price of sugar and flour dropped. Chemical leavening agents,
such as baking soda, became available and a profusion of cookie recipes
occurred. This led to the development of manufactured cookies.
Interestingly, as time has passed and despite more varieties becoming
available, the essential ingredients of biscuits haven’t changed – like ‘soft’
wheat flour (which contains less protein than the flour used to bake bread)
sugar, and fats, such as butter and oil. Today, though they are known by
different names the world over, people agree on one thing – nothing beats
the biscuit!
Our products

• Britannia GOOD DAY
Achievement of the company

THE Economic Times and AC Nielsen have announced the most trusted brands
rated by consumers all over India and across categories. Britannia was in the India
Top 10 list, ranked 9 across all categories and 2 in the food category. Last year,
Britannia rank was 7 and 2 respectively.

Britannia industries limited was established at Pantnagar on 1stApril 2005
in the area of approximately 20 acres mainly for the purpose of production
of biscuits as this area is free from almost all types of taxes.
In Britannia Industries Limited there are many types of departments
which are inter connected to each other and work together for the welfare of
the Company as the whole. There is a well built communication system
inside the Company which helps in doing the work on time and with full
efficiency and effectiveness.
The departments of the Company includes Quality assurance, Stores,
Production, Purchase, Maintenance, Engineering, Packaging and dispatch,
Personnel and training, Finance, legal and administrative security.
New concept like 5S is also being implemented in Britannia Industries
Limited. The Company has got ISO 14001 certificate and it is ISO 22000
There are four plants in operation in the Company at this branch. First plant
is for Marie Gold which has a flexi line for Good day also. Second plant is
for Good Day, Third one is for 50:50 variants, pepper chakkar and Maska
Chaska. Fourth and last plant is for Bourbon which has a flexi line for
Orange cream also.

Unit Head : Mr. Manoj Mishra

Finance : Mr. Mudit Agarwal

Human Resource : Mr. Mayank Shrivastava

Production : Mr.Mahak Singh / Mr. Anil Anand

Purchase : Mr. Anil Sharma

Engineering : Mr. Sajeev Koshy

Quality : Mr. Rohit Shukla



Not all the brands of Britannia are produced in this branch only some brands of
biscuits are produced at this branch.
Production of biscuits in Britannia Pantnagar branch is divided in to four
1. Plant I
Good Day Butter
Good Day Pista Badam

2. Plant II

Good Day Cashew

Good Day Butter

3. Plant III


50.50 Maska Chaska

50.50 Pepper Chakkar

4. Plant IV

Chocolate Bourbon

Orange treat

Milk Bikis Milk Cream


There are many types of raw materials which are used in Britannia for the
production of different types of biscuits. Some of them are – wheat flour, sugar,
butter, skimmed milk powder, cashew, salt, different types of fats which
includes different oils, sodium bi carbonate, ammonium bi carbonate etc.
Some of the materials which are used in Britannia industries need
cold storage while some needs normal storage. So on the basis of the need of
different raw materials they are stored in different storage places. The materials
which are stored in cold storage are at the temperature of 5 degree Celsius
while the materials which need normal storage are stored at the normal
temperature. There classification of some of the raw materials is as follows:
Normal storage raw material
 Sugar
 Ammonia
 Palm oil
 Salt
 Skimmed milk powder
 Wheat flour
 Cocoa powder
 GMS powder

Cold storage raw material

 Butter
 Condensed milk
 Essences
 Cashew




It is sorting between waited and unwanted things in a selected area, region or
It means a place for everything and everything in its place.
It deals with the job of thoroughly cleaning the workplace.
It means standardization which is needed to maintain SEIRI, SEITON and
SEISO. It leads to use of visual management to avoid mistakes.
It means discipline which is called for strict adherence to a system form our present
unsystematic way.


The purpose of this policy is to ensure that we win through quality in the
market place. This means that we must do every thing’s to ensure consistent
delivery of quality products to the customers every time.
Our commitment to quality and food safety will be reflected in every
action and is non negligible. That means:

 All ingredients used in our factories always meet specified quality


 All factories and depots maintain high standard of hygiene which

ensures that our products are healthy and safe for consumption.
 Our manufacturing products always ensure delivery of products

consistent with product and pack specifications which are free from


 Our supply chain practices enable delivery of fresh products to our


We will fulfill these objectives through:-

 Investing in appropriate technology and equipping our factories


 Working Collaborate with our business partners to create ‘win win’

business Outcomes.

 Developing process which enable consistent delivery of quality

products to our customers.

Continually training and retraining our employees and business partners to

create a culture that values quality and food safety as the core pillars of our

 Working collaborators with the business partners.

 Quality products to customers.

 Continuous training and retraining of the employees to create culture that

value quality and food safety as a core pillar of the business.

 Investing in appropriate technology.

 To control the wastage and save time and efforts.

 To work under the principals of Kiazen, Hassap and 5 ‘S’

Working Capital Management is the process of planning and controlling the
level and mix of the current assets of the firm as well as financing these

Decisions relating to working capital and short term financing are

referred to as working capital management. These involve managing the
relationship between a firm's short-term assets and its short-term liabilities.
The goal of Working capital management is to ensure that the firm is able to
continue its operations and that it has sufficient cash flow to satisfy both
maturing short-term debt and upcoming operational expenses.

What is working capital?

Working capital refers to short term funds required to meet the day to day
operating expenses of the firm.

According to RAMAMOORTHY,

“Working capital refers to the funds,

which a company must possess to finance its day to day operations.”

It relates with the problems that arise in attempting to manage the

Current Assets, Current Liabilities and their inter-relationship that exists
between them.

If a firm cannot maintain a satisfactory level of working capital, it is

likely to become insolvent and may even be forced into bankruptcy.

Therefore, the goal of working capital management is to manage the firm’s

Current Assets and Current Liabilities in such a way that a satisfactory level
of working capital is maintained.
Types of Working Capital:
I. Concept based
II. Time based


a) Gross working capital

b) Net working capital


The term “gross working capital “, refers to the firms investment in current
assets. Current assets are the assets which can be converted into cash within
an accounting year.


Net working capital (NWC) is the difference B\W Current assets &current
liabilities. It is that portion of firm’s current assets which is financed with
long as well as short term funds.


Current Assets:-
 Cash and Bank deposits
 Inventory
 Debtors and Receivables
 Prepaid Expenses
 Marketable Securities

Current Liabilities:-
 Bank Overdraft
 Creditors and Payables
 Notes Payable
 Accrued Expenses etc.

a) Permanent or fixed working capital

b) Temporary or variable working capital


It is the minimum investment kept in the form of inventory of raw
material, work-in-process, finished goods, stores & spares & book
debts to facilitate uninterrupted operation in a firm. Though this
investment is stable in short run, it may vary in the long run. The
minimum level of Current Assets maintained in a firm is usually
known as permanent or regular working capital.


A firm is required to maintain additional Current Assets temporarily
over & above permanent working capital to satisfy cyclical demands.
An amount over & above the permanent working capital is temporary
or fluctuating working capital. At times, additional working capital is
required to meet the unforeseen events like floods, strikes, fire, &
price hike tendencies and contingencies.


The need for working capital to run day to day business activities cannot
be overemphasis. We will hardly find a business firm which does not
require any amount of working capital.
We know that the firm aims at maximizing the wealth of the shareholder.
In its endeavor to maximize shareholder wealth the firm should earn
sufficient return from its operation earning a steady amount of profit
requires successful sales activity. The firm has invested enough funds in
current assets for the success of sales activity. Current assets are needed
because sales do not convert into cash instantaneously. There is always
operating cycle involved in the conversion of cash.



 Solvency of the business-

 To Maintain good will-
 Easy Loans-
 Cash Discount-
 Regular Supply of Raw Material-
 Regular Payment of Salary, Wages, Other day-to-day expenses-
 Exploitation of favorable market conditions-
 Ability to face crisis-

 Long term sources (Permanent or Fixed)

 Short term Sources (temporary)

Permanent or Fixed Temporary or Variable

 Shares  Commercial bank

 Debentures  Indigenous
 Public deposits bankers

 Ploughing back  Trade creditors

of profits  Installments

 Loans from credit

financial  Advances
institutions  Account



1 Nature or Character of business

2 Size of Business/ Scale of Operation

3 Production policy

4 Manufacturing Process/Length of production Cycle

5 Seasonal variations

6 Working capital cycle

7 Rate of Stock Turnover

8 Credit policy

9 Business Cycle

10 Rate of Growth of Business

11 Earning Capacity and Dividend Policy

12 Price Level Changes

13 Other Factors



Hedging: This requires that financing of each asset would be offset

with a financing instrument of approximately the same maturity. Short term
or seasonal variations in current assets would be financed with short term
debt. The fixed assets and the permanent component of current assets would
be financed with long term debt or equity. And the firm can adopt a financial
plan which matches the expected life of source of fund s raised to finance

Conservative: A firm can adopt a conservative approach in financing

its current and fixed assets. a financial policy of the firm is said to be
conservative when its depends more on long term funds for financing
needs .under a conservative plan, the firm finances its permanent assets and
also a part of temporary current assets, with long term financing .

Aggressive: A firm may be aggressive in financing its assets. An

aggressive policy is said to be followed by the firm when it uses more short
term financing than warranted by matching plan .under a aggressive policy,
the firm finance a part of permanent current assets with short term
financing .


Working Capital management involves the problem of decision making
regarding investment in various current assets with an objective of
maintaining the liquidity of funds of the firm to meet its obligation promptly
and efficiently. The basic goal of working capital management is to manage
the current assets and current liabilities of a firm in such a way that a
satisfactory level of working capital is maintained, it is neither inadequate
nor excessive.
The management of working capital has-been studies under the following
three heads-

1 .Management of Cash Balance: -

Cash is one of the current assets of a business. It is needed at all times to

keep business concern should always keep sufficient cash for meeting its
obligations. Any shortage of cash will hamper the operations of a concern
and any excess of it will be unproductive.

Cash not only include hard cash but also include which can be easily
converted into cash with in no time.

Tool for Cash Control:-

a) Cash Budget.
b) Inflow or Outflow of cash.
c) Ratio Analysis.

2. Management of receivable: -

“Receivable result from credit sales”. A concern is required to allow

credit sales in order to expand its sales volume. It is not always possible
to sell goods on cash basis only. Sometimes, other concerns in that line
might have established a practice of selling goods on credit basis. Under
these circumstances, it is not possible to avoid credit sale without
adversely affecting sale.

Tool for receivable control:-

a) Deciding acceptable level of risk.
b) Terms of credit sale.
c) Credit collection policy.

3. Management of Inventory: -
Inventories mean the stock of the product and the components of the
product that is Raw Material, W-I-P, Finish good, Spares. Inventories
hold the prime position among the current assets in India. In India, about
60% of the current assets are representing by inventories. Thus large part
of working capital is invested in inventories. The management of
inventories is therefore necessary to avoid heavy losses due to leakage,
theft and wastage because neglecting the management of inventories may
jeopardize the long run profitability of the concern and the concern may
fall ultimately. Inventory management will minimize these costs.

Tool for Inventories control:-

a) Classification and identification of inventories.

b) Adequate storage facilities.
c) Record of inventories.
d) Standardization and simplification of inventories.
e) Use the appropriate method of inventory control for ex. - JIT,
HML, EOQ, FSN etc.
f) Intelligent and experience person.

Schedule of change in Working

The working capital of a business concern is subject to change due to several
business transactions. Working Capital represents excess of current assets
over current liabilities. The Schedule of Change in Working Capital presents
a detailed and analytical picture of changes in current assets and current
liabilities during two balance sheet dates.
Ratio Analysis:
Ratio is one of the methods of analyzing financial statement. Ratio analysis
measures the Profitability, Efficiency and Financial soundness of the
According to Myers, “Ratio analysis is a “study of relationship among the
various financial factors in a business”.

Fund Flow statement:

Fund flow statement is the technique of analyzing and interpreting the
financial statement of business concern. It is a technical device designed to
analyze the changes in the financial or working capital position of a business
enterprise between two dates.
The Fund Flow Statement is a statement, depicting change in working
capital. It is also termed as a ‘statement of source and Application of Funds’,
‘Statement of Change in Financial Position’, ‘Statement of Change in
Working Capital’



1. OPERATING CYCLE: Operating cycle is the time duration with in

one cycle of business operation is completed. Business operations involve a
number of stages from purchase of raw material till conversion of receivable
into cash.
2. ADEQUATE WORKING CAPITAL: Working capital helps in
maximizing the value of money if it is used correctly. There are dangers of
idle funds if there is excessive working capital and it does not earn any profit
for the firm. The problems are as follows:-
 In case of excessive working capital, there will be a high accumulation of
inventory which is not required.
Excessive working capital means that the company does not have any
efficiency in its credit policy. This would lead to bad debts.
It also leads to theft, wastage and managerial inefficiency.

The following problems arise in inadequate working capital:-

The firm is unable to carry out its business and thus it results into losses
and affects the profits of the firm.
Inadequate working capital affects the goodwill of the firm when it will
not be able to meet its liabilities in required time.
Production logs will occur when there is inadequate working capital to run
the business.

3. FINANCING MIX : Working capital significance is also due to the

management of the pattern of financing the Current Assets. The firm has to
continuously measure and decide the source from which fund can be used
for making investments. For which, the usual sources are decided:-
Debt or equity
Long or short term

Objective of study
The objective for doing my summer training is to make myself capable for
moving forward in corporate world, to gain knowledge & experience &know
how to work in the organization environment. It will help me to gain more &
more about corporate sector, which was very essential for me to do. There-
fore I joined BIL Pantnagar to improve my capabilities.

Main objective
To analyze how ‘working capital management’ method is done in Britannia
industries limited.

Sub objective

 To see the difference between the theoretical knowledge & practical


 To know about industrial environment.

 To know how theoretical knowledge apply in the practical approach.

 To know the techniques of working capital management in their


 To know whether they open to adopt new methods and techniques to

manage their financial resources better.

 To know whether they are satisfied with the changes or not.

 To know what are their option to current credit delivery mechanism.

 To know the liquidity position of the firm.

 To search the new methods and configuration of data.


Research methodology
The purpose of the methodology is to describe the process involve in the
research work. This includes the overall research design, the data collection
Research Methodology refers to the various sequential steps (along
with a rationale, of each such steps) to be adopted by a researcher in
studying a problem with certain object or objectives in view. It would be
appropriate to mention that research project are not susceptible to any one
complete and inflexible sequence of steps and type of problems to be studied
will determine the particular steps to be taken and their order too.


Data was collected by using both primary and secondary methods. In
primary method of data collection personal interview and questionnaire was
used and in case of secondary ways of data collection the magazines of
Britannia was used.

Primary DATA:
Primary data are those which are collected a fresh and for the first time and
thus happen to be original in character. There are numbers of method of
collecting primary data.

 Calculation
 Observation

Secondary DATA:
Secondary data means data that are already available i.e. they refer to the
data which have already been collected and analyze by someone else.

 Books
 Reports
 Magazine
 Internet

 The main aim of research is to find out the truth which is hidden and

which has not been discovered yet.

 To test the hypothesis of a casual relationship between variables (such

studies are known as hypothesis-testing research studies).

 To discover answer to questions through application of scientific


 To gain familiarity with a phenomenon or to achieve new insights.

 To determine the frequency with which something occurs or which it

is associated with something else.


 The time period for the project is very less for understanding the wide

 The ratio of the one company cannot always be compared with the
performance of the other firm.

 Price level change affects the validity of comparisons of ratios

computed for different time periods.
 Comparisons are also made difficult due to differences of the terms
like gross profit, operating profit, net profit etc.

 If company resort to ‘window dressing’, outsiders cannot look into the

facts and affect the validity of comparisons.

 There is no free access of reputed libraries.

 The scope off study is very wide .A large sample would have
provided more confidence in the findings but due to cost and time
constraint the sample size was kept small.

 Most of the business units in our country do not have confidence that
the information shared by them with the people will not be misused.
So this makes the employees reluctant to share information with them.
Reluctance is more if information pertains to financial position and
business operations.

Working capital has increased in comparison to previous year 2009-10 by

Rs. 57.91 Mn. Due to:-

 Fuel Consumption has gone down in 2009-10 by using the Alternative

banking fuel ‘Propane’ which required to be procured in high
 Stock of engineering material has gone up as the material is kept for


 Reduction in packing material shows that the release of working

capital needs to be used in other activities.

 Inventory of raw material has increased due to increases in production

which shows increase in the value of Inventory.

 Dispatching of goods on time has reduced the amount of FG

inventory, which is a good indication for maintaining inventory.

Debtors have decreased due to subsequent realization.

 Prepaid miscellaneous expenses were reduced as no additional

expenses were incurred.

 Current assets are increased by 45.51% due to maintaining high

inventory in engineering, Store & Raw material.

 The production of Pant Nagar unit was 245.10 MT on 04.03.09.




 Maintaining good relations with suppliers to get maximum raw

materials & capital so that the organization can continue dealing in

future as well.

 The organization structure must be flattered for the quicken decision

making which will result in higher profitability.

 Management of Britannia ensures the efficient use of various

resources & increases the productivity of the enterprise.

 Keeping & maintaining good working condition to ensure fair wage

for worker security of employment.

 Complaint and replace the defective product in time, otherwise it will

tarnish the image of the company among the retailers.

 The company can diversify itself by undertaking the manufacturing of

various different products apart from manufacturing biscuits at the

Rudrapur Branch.

 To ensure the proper quality of raw materials before placing an order

to the vendor terms and conditions of penalties should be given to the

vendors if they supply defected material.

 Storage capacity of the company should be increased by properly

utilizing the waste land of the company.

This report is whole on the basis of financial analysis. The main object of

doing this study is to analysis the condition of organization. The tools of

financial are used to find out the soundness of the company.

It can be concluded that in the fiercely competitive FMCG market with

regional players striking so hard at BILs market share the company has not

made any compromise with quality, systems and practices in spite of feeling

the pinch in its profitability not only due to competition but also because

being an agro based industry and because of the seasonality and

unpredictability in the availability and price of one of its major raw material


The company is doing well in terms of its marketing approach and the

financials of the company seem to be healthy as of now.


 Financial Management : Sudhindra Bhatt

 Financial Management : I M Pandey

 www.google.com
 www.britannia.com