A

PROJECT
ON
Fund management and profitability: A
Study on Their Relationship in Britannia

In
Partial Fulfillment of Masters in
Business Administration (Finance)
At
IITM, Gwalior

Submitted By
Pranita
Jain 3
M.B.A. rd SEM
(Batch 2008-2010)

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 ACKNOWLEDGEMENT

Gratitude is the hardest of emotion to express and often does not find
adequate ways to convey the entire one feels.

Summe r training is the one of the important part of MBA course, which has
helpe d me to learn a lot of expe riences which will be beneficial in my
succeeding career.

For this with an ineffable sense of gratitude I take this opportunity to express
my deep sense of indebtedness to Respected Mr. Akhilesh Misra who has
provide d me an opportunity to learn the corporate culture during my MBA
course. At the same time I want to thanks all my faculty members.

I am also very much thankful to Mr. R. K. Gupta (Personne l Manager), Ms.

Priyanka Tuli(Account Officer), J.B. Mangharam Foods Pvt. Ltd. for his inte rest,
constructive criticism, persistent encouragement and untiring guidance
throughout the development of the project. It has been my great privilege to
work under his inspiring guidance.

Further I would also like to exte nd my sincere Thanks to Mr. Suresh Sharma
for his valuable guidance , suggestions and outstanding mentorship. I am also
thankful to Ms. Priyanka for extending support & guidance. I would have
never bee n able to complete our project in time without the enormous help
extended by the whole staff of J.B. Mangharam Foods Pvt. L td.

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 DECLARATION

I, Pranita Jain, Student of III Semester (MBA (Finance)), IITM, Gwalior declare
that the proje ct on Relationship between Fund Management and Profitability
at Britannia is the result of my own efforts and it is based on data colle cted
and guidance given to me.

I have prepared it during my Summer Internship from 22 nd May 2009 and the
project was completed on 5 th June 2009. This report is correct to best of my
knowledge and so far has not bee n published anywhere else.

Pranita Jain

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 PREFACE

It is said that without theory, practice is blind and without pra ctice theory
is meaningless.

Hence practical training has been made integral part of the management
education in India. The summer training programmers are designed to give a
manager the future of the corporate happenings and work culture.

It exposes the potential of the manager of the future to the actual tune of the
working environment present is dynamic organization.

Pers onnel manageme nt is that part of management conce rned with the
people at work and with their relationships within the organization.

My project at J. B. Mangharam Food Pvt. Ltd. Was Analysis of relations hip

between fund management and profitability. The study helps me in
understanding how the Fund Management implies the effective and efficient
acquisition, allocation and utilization of funds in a better way. My summe r
training as whole helped me in understanding the corporate culture in a
better way.

I am fortunate project I trie d to find out the wo rking methods and techniques,
which is e nough to get the opportunity of vocational training at J. B.
Mangharam Foods Pvt. Ltd., Gwalior.

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 CONTENT
S

Chapters Topics Covered Page No.

CHAPTER 1. Industry Profile

CHAPTER 2. Organizational Profile

CHAPTER 3 Need For Study

CHAPTER 4. Literature Review

CHAPTER 5. Research Methodology

CHAPTER 6. Analysis Of The Study

CHAPTER 7. Findings and Suggestions

CHAPTER 8. Conclusion

CHAPTER 9. Appendices

CHAPTER 10. Bibliography

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 BRITANNIA INDUSTRY
LTD.
Company Overview:
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 starte d in a
nondescript house in Calcutta (now Kol kata) 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 ele ctricity, 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 Limite d (BIL). Four years later
in 1983, it crossed the Rs. 100 crores 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 Be tter" - and made its first foray into

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the dairy products market. In 1999, the "Britannia Khao, World Cup Jao"
promotion further fortified the affinity consumers had with 'Brand B ritannia'.

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 C ompany, and
Britannia New Zealand Foods Pvt. Ltd. was born. In recognition of its vision
and accele rating 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 consume rs will savour
the results, happily ever after.

Britannia in fact is an older company originally incorporate d as Britannia

Biscuit Company Ltd. in Kolkata in 1918. Subsequently they moved to
Mumbai during early seventies and finally shifted the ir headquarte rs to

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Bangalore. Currently Britannia s controlling stake is jointly help by Group
Danone & Nusli Wadia of Bombay Dyeing. About 83% of the company
business is biscuits. Bread constitutes only about 5% of the ir business and
Cake and Rusk about 2%.

³Britannia as all of us can recollect had a stated Mission

to make every third Indian a Britannia Consumer. ³

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The diffe rent Biscuitswhich are manufactured by Britannia are:
50-50, Jim Jam, Bourbon, Good Day, Greetings, Little Hearts, Marie Gold, Milk
Bikis, Nice Time, Tiger, Time Pass and Treat. The Bread which is manufacture d
by Britannia is Premium Bake White Sandwich Bread. The Rusk which is
manufactured by Britannia is Premium Bake Cake and Rusk.

Britannia Industries Ltd., constantly on its toes to improve its bottom -line, is
working out a product strategy. The company is bullish about the on-the-go
segment and is planning to roll out smaller packs under its major sub -brands.
It would be gradually expanding its ticki -packs (packs of 2 or 4 biscuits)
concepts across its product range .
The market today is heterogene ous, hence we need to adopt a segmented
approach to reach out to custome r , said Ms. Vinita Bal i, CEO.
Speaking about
the on-the-go segment, Mr. Neeraj Chandra, Marketing Head said It is
priced in Rs. 1 to 5 range. Britannia hopes to bring our key brand under this
packaging.
Britannia is lot more than just biscuits. Its other segments: Bre ad, cakes, rusks
and dairy are doing equally well

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 THE MANAGEMENT TEAM:

Name Designation

Mr. Nusli Neville Wadia Chairman

Ms. Vinita Bali Managing D ire ctor
Mr. Neeraj Chandra VP & Chief Ope rating Officer
Mr. P. Shyam Sunder VP & Head of Quality
Mr. Rajesh Kumar Lal VP & Chief
Technology
Office r
Mr. Raju Thomas Chief Financial Office r
Mr. Alagu Balaraman VP- HR & Process
Architect
Mr. Atul Sinha VP- New Business Deve
lopment

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Logo:
The new logowas born is the core esse nce of Britannia - healthy, nutritious,
optimistic and combining it with a delightful product range to offer variety
and choice to consumers.

Then came anothe r logo that is being use d now -a-days:

y Britannia is a first industry a warded with Certifica tion of ISO -22000.

y Similarly, J. B. Mangharam in MP is fi rs t to be a warded w ith this
certification.

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Milestones:

1892
y The Genesis - Britannia established with an investment of Rs. 295 in
Kolkata.

1910
y Advent of electricity sees ope rations mechanized.

1921
y Imported machinery introduced; Britannia be comes the first company
East of the Suez to use gas ovens.

1939-44
y Sales rise expone ntially to Rs.16, 27,202 in 1939.
y During 1944 sales ramp up by more than eight times to reach Rs.1.36
crore.

1975
y Britannia Biscuit Company takes over biscuit distribution from Par ry's.

1978

y Public issue - Indian shareholding crosses 60%.

1979
y Re -christened Britannia Industries Ltd. (BIL).

1983
y Sales cross Rs.100 crore.

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1989
y The Executive Office relocated to Bangalore.

1992
y BIL celebrates its Platinum Jubilee.

1993
y Wadia Group acquires stake in ABIL, UK and becomes an equal partner
with Group Danone in BIL.

1994
y Volumes cross 1,00,000 tons of biscuits.

1997
y Re -birth - new corporate identity 'Eat Healthy, Think Better' leads to
new mission: 'Make every third Indian a Brita nnia consumer'.
y BIL e nters the dairy products market.

1999
y "Britannia Khao World Cup Jao" - a major success! Profit up by 37%.

2000
y Forbes Global Ranking - Britannia among Top 300 small companies.

2001
y BIL ranked one of India's biggest brands.
y No.1 food brand of the country.

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 y Britannia Lagaan Match: India's most successful promotional activity of
the year.
y Maska Chaska: India's most successful FMCG launch.

2002
y BIL launches joint venture with Fonte rra, the world's second largest
dairy company.
y Britannia Ne w Zealand Foods Pvt. Ltd. is born.
y Rated as 'One amongst the Top 200 Small Companies of the World' by
Forbes Global.
y Economic Times ranks BIL India's 2nd Most Trusted Brand.
y Pure Magic -Winner of the Worldstar, Asiastar and Indiastar award for
packaging.

2003
y 'Treat Duet' - most successful launch of the ye ar.
y Britannia Khao World Cup Jao rocks the consumer lives yet again.

2004
y Britannia accorded the status of being a 'Super brand'.
y Volumes cross 3, 00,000 tons of biscuits.
y Good Day adds a new varian t - Choconut - in its range.

2005
y Re -birth of Tige r - 'Swasth Khao, Tiger Ban Jao' becomes the popular
chant!
y Britannia launched 'Greetings' range of premium ass orted gift packs.
y The new plant in Uttaranchal, commissioned ahead of schedule.

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 y The launch of yet another exciting snacking option - Britannia 50-50
Pepper Chakkar.
2007
y Britannia industries formed a joint venture with the Khimji Ramdas
Group and acquired a 70 percent be neficial state in the Dubai -based
Strategic Foods International Co. LLC and 65.4% in the O man-based Al
Sallan Food Industries Co. SAOG.
y Britannia ranks No. 1 Brand in the Metros across all categories.
y Britannia rate d as the No. 1 MOST TRUSTED FOOD BRA ND in a survey
conducted by AC Nielsen ORG0-Marg and published in Economics
Times.

2008
y Britannia launched Iron fortified 'Tiger Banana' biscuits, 'Good Day
Classic Cookies', Low Fat Dahi and renovated 'Marie Gold'.

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 J. B. MANGHARAM FOOD
Ltd.
J. B. Mangharam Pvt. Ltd.
is a very old factory; it was establishe d in 1951
under the name of J. B. Mangharam & Company with the obje ctives of
manufacturing of biscuits & confectionary product. The company was
restructured in 1969 & 1977 after the death of Seth J. B. Mangharam. In 1983,
the company stated manufacturing biscuits for Brita nnia Industry Limited
originally the production started with Marigold & Bourbon varieties if biscuits.
To meet increasing volume of production targets and customer satisfaction,
the company went into the expansion plan in 1994 and operation shifted to
balding with state of art te chnology in biscuit manufacturing. The old hybrid
oven were replaced by LDO (Light Diesel Oil) fired oven & LPG fired ovens.
This centre is well known for its quality and consistency in performance and its
bench markete d for many ac tivities.

1996 Jim Jam production was started and this is the National Centre for this
variety. Beside of these Britannia 50-50 and Britannia Milk Bikis are the two
other varities which are manufacturing in the industry.

J. B. Mangharam Foods Pvt. Ltd. i s managed by J. B. Mangharam & Company

but products are made of Britannia.

At present 4 varieties of biscuits are manufactured in J. B. Mangharam:

y 50-50
y Jim Jam
y Bourbon

y Nice Time

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Objective of J. B. Mangharam:
Its objective is to upgrade employee performance to the requirement
standards through identification of the training needs for developing the skills
and improving the employees knowle dge.

General:
India is the second largest wheat producing country in the world. It is the
second largest most imp ortant cereal grain crop in India next to rice and is
cultivated on nearly 26 million he ctares of land with an annual production of
72 million tones. Important wheat producing state s in India are U.P., Punjab,
M.P. and Rajasthan. Surplus wheat produced fro m these states is procured by
Central and State Gove rnment.

The wheat cultivars grown in Northe rn India are high yielding with and
average yield of 2.5 tones per hectare. The substantial increase in the wheat
production in India has been attributed to gre en revolution, which started in
1967. The aestivum wheat contributes a little over 90% of total production.
About 10% of it is processed in roller flour mills to obtain flour (Maida), which
is the major raw material for the production of bake ry products.

The bakery products are the most important engineered foods in the world.
They are increasingly becoming popular due to their ready to eat convenience.

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 NEED FOR THE
STUDY
To manage the effective and efficient acquisition, allocation and utilization of
funds measure the profitability and financial performance of the Britannia
industries Pvt. Ltd. As whole.

Funds management represents the core of sound financial planning. Although

it is not a new concept, practices, technique s, and norms have been revis ed
substantially in recent years. Funds management is the process of managing
balance sheet and off -balance sheet instruments to maximize and maintain
the spread between interests earne d and paid while ens uring the company s
ability to pay off liabilities and fund asset growth. Therefore, a company s
funds management practices will affect earnings and liquidity.

This study has the following objectives:

y To measure the impact of fund management on profitability in the
Britannia Industries Food Ltd. by computing Pearson's s imple
correlation coefficient, between Profit Before Interest and Tax/Margin
(PBITM), and each of some sele cted effi ciency indicators of fund
management and between Re turn on Capital Employed (ROCE) and
each of these efficiency parameters f or each of the companies sele cted
in this study.

y To assess the joint effe ct of the sele cted efficiency measures on the
profitability of the company under study by applying various
correlation and regression te chniques.

The study is based on analysis of company s fund management. In this study,

Britannia

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Industries Food Ltd. belonging to the private sector have been analyzed under
following purposive sampling procedure. The data of the selected company
for the period of 10 years from 1999-2000 to 2008-09 used in this study have
been taken from the pre vious years balance sheets and profit & loss accounts
available on the site of the company . While making analysis of the data ratio
analysis as well as various statistical tools and techniques have been used. The
ratios relating to the measureme nt of efficiency- fund management which
have been used in this study are: Fixed Assets Turnover Ratio (FA TR) Inventory
Turnover Ratio (ITR) and Debtors Turnove r Ratio (DTR). The profitability
measures which have been sel ected for this study are: Profit Before Inte rest &
Tax (PBITM) and Return On Capital Employed ( ROCE). The degree of
relationship between efficiency of fund management and profitability has
been assessed through correlation coe fficie nts between the sele cted
measures of fund management and profitability taking into account their
magnitudes (i.e. by Pearson's simple correlation coeffi cie nt).

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21 | P a g e
 LITERATURE
SURVEY

Efficient fund management is an integral part of the overall corporate s trategy

to create shareholder value. Fund management im plies the effective and
efficient acquisition, allocation and utilization of funds. The efficiency with
which funds are managed is gleaned from turnover ratios. Turnove r ratios
measure how rapidly the assets are being turned ov er into sales. In other
words, they indicate how well the company manages its funds and indicates
sales turnover for every rupee of fund. The way in which funds are managed
can have a significant impact on the profitability of the company. It is an
empirical question whethe r a high value of turnover ratio has a positive
influence on the company's earning capability.

A company can have larger sales with a very liberal credit policy, which shrinks
the debtor s turnover ratio. In this case, the lower debtor s turnover ratio may
result in higher profitability. However, as pa r the traditional view, a low value
of turnover ratio hits the company's profitability. During the last four decades,
in the US, UK and some other developed countries, several studies had bee n
carried out on fund management. A considerable num ber of these are
connected with the evaluation of the interrelationship betwee n utilization of
funds and profitability. Lemke (1970), Gent ry (1976), Foste r (1978), Smith
(1980) and Shin and Soenen (1998) are among the prominent contributors
who extensively investigated this issue. The findings of their studies are
conflicting in nature.

**( Debasish Sur, Reader and Head, Department of Commerce, The University of B urdwan, B urdwan
713104, Kolkata, India. E-mail: debasishsur@yahoo.co.in )

**(Kaushik Chakraborty, Faculty Member, Department of Commerce, St. Xavier's College,

Autonomous, and Visiting Faculty, The ICFAI School of Financial Studies, Kolkata, India. E-mail:
kaushikchak@gmail.com )

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23 | P a g e
 RESEARCH
METHODOLOGY
Research means a careful investigation or inquiry especially through search for
new facts in any branch of knowledge. Thus it is an original contribution to t he
existing stock of knowledge making for its advancement and research··
methodolog y is a way to s ystematically sol ve the research problem.

An appropriate methodology is an essence of any re search work. The succe ss

of any proje ct depends upon the method chose n. The project is about the
inventory management.

1. Problem Identification:
This is the first an important step in any research this is a very significant step.
On the
Othe r hand if the problem is we ll defined regularly than the research may be
useless for the management of the organization for which the re search is
being conducted. As the researche r has opted finance as he r specialization
field, her de cision of unde rtaking this research is genuine. One more thing
which supports the resea rch s decision for design is that the finance is the life
for any organization so it is also in favor of the organization to do each
possible effort in the direction of maintaining a healthy financial position.
The study is based on analysis of company s fund management. In this study,
Britannia
Industries Food Ltd. belonging to the private sector have been analyzed under
following purposive sampling procedure.

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2 . Type of Research:
The research work being undertaken by the researcher is purely analytical
work be cause the research is an attempt to analyze the financial position of
the organization on the basis of the annual reports.
The data of the sele cted company for the period of 10 years from 1999-2000
to 2008-09 used in this study have bee n take n from the previous years
balance sheets and profit & loss accounts available on the site of the
company.

3. Objective of the study:

There are various objective of the study which is as follows:
I. Primary objectives
II. Secondary objectives

i. The primary obje ctives of the study are to prepare the project report
succe ssfully was necessary to create some objective so that it helps
task to get complete easily and corre ctly.

y To highlight the policies and proce dure of analysis of working

capital & by analyzing various ratios.
y To make a detailed analysis of the strategies adopted by the
company for planning monitoring and financing working capital.
y To identify the ve rtical areas whe re greater attention is needed for
bette r management.
y To give the feedback to the compa ny for improveme nt in their
strategies.

ii. The se condary objectives of this study are as follows:

y To get some e xperience of working in an organization.

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 y To know the deficie ncies in the area of the finances.
In this project the objective of the study is to analyze the Relationship
between Fund Management and Profitability ae Britannia Industries Pvt. Ld.
y Identification of the areas or details, which have no more relevance in
the report.
y Identification of the ke y area on which company performance is
dependent.
y Include all detail which reflects the position of company in current
situation.

This study has the following objectives:

y To measure the impact of fund management on profitability in the
Britannia Industries Food Ltd. by computing Pearson's s imple
correlation coefficient, between Profit Before Interest and Tax/Margin
(PBITM), and each of some sele cted effi ciency indicators of fund
management and between Re turn on Capital Employed (ROCE) and
each of these efficiency parameters for each of the companies select ed
in this study.

y To assess the joint effe ct of the sele cted efficiency measures on the
profitability of the company under study by applying various
correlation and regression te chniques.

4 . Research Design:
Before starting the research eve ry researcher should know the obje ctive of
the study. The objective is already given to attain it various data is analyzed.
Research design is analytical.
Research design facilitates the smoothness of various research operations
there by making rese arch as efficient a s possible, yielding maximal

26 | P a g e
information with minimal e xpenditure of efforts, time and money. Data has
been collected through previous year s balance sheets and profit and loss
accounts by calculating various turnover and profitability ratios.

6. Collection of Data:
For conducting the research I had collected the secondary data which was
collecte d by the internal sources. I had collected the financial statement
(Balance sheet & profit & loss A /C) for 10 years for the calculation of the
ratios.
Secondary data is data collected by someone other than the user. Common
sources of secondary data for social science include censuses, surveys,
organizational records and data colle cted through qualitative methodologies
or qualitative research.
Secondary data analysis saves time that would otherwise be spent collecting
data and, particularly in the case of quantitative data, provides larger and
higher-quality databases than would be unfeasible for any individual
researcher to colle ct on their own. In addition to that, analysts of social and
economic change consider secondary data essential, since it is impossible to
conduct a new survey that can adequately capture past change and/or
developments.
Secondary data is data that has already be en collected and collate d by
somebody for some reason othe r than the current study. It can be used to
get a new pe rspective on the current study, to supplement or compare
the work or to use parts of it, as another study may prove costly and time
consuming e.g. the census.
Secondary data can further be divided into two parts. Qualitative data
includes biographies, personal lette rs, diaries, re cords, documents, published
material, compute r database, policy statements, etc. Quantitative data would
have market research, cens us, and Economic d ocuments, planning documents

27 | P a g e
or spe cimens. The list is endless and once the type of se condary data is
identified, it becomes easy to locate the source.

6. Analysis:
Analysis of data is most e ssential and difficult tas k in the present report an
attempt has been made to analyze each & every financial statement of the
company effectively so that prope r analysis can be made of financial
condition of the company.
While making analysis of the data ratio analysis as well as various statistical
tools and techniques have been used. The ratios re lating to the measurement
of efficiency- fund management which have been used in this study are: Fixed
Assets Turnove r Ratio (FATR) Inventory Turnove r Ratio (ITR) and Debtors
Turnover Ratio (DTR). The profita bility measures which have been sele cted for
this study are: Profit Before Interest & Tax (PBITM) and Return On Capital
Employed ( ROCE). The degree of relationship between effic iency of fund
management and profitability has been assessed through correlation
coe fficients between the sele cte d measures of fund management and
profitability taking into account thier magnitudes (i.e. by Pearson's simple
correlation coeffi cie nt).

28 | P a g e
 LIMITATIONS OF STUDY

y The study depends on financial data obtained from the office pe rsonal &
since them were not willing to reveal a ny information about their
organization and system, so an intended e rror may have crept it.

y I have used the database available on net, previous year s balance sheets
and profit & loss accounts. Only te n years database is available the re.

y Data transpare ncy is restricted

y The limitation of technique used in analysis cannot be avoided & they are
felt well a study.

y Limitation of the study is up to J. B. Mangharam Food Pvt. Ltd.

29 | P a g e
30 | P a g e
I have analyze the relationship betw een fund management & profitability for
which I have taken some ratios which are the determinant of fund
management such as Debtors Turnover Ratio, Inventory Turnove r Ratio, Fixed
Asset Turnover Ratio, Return on Capital employed & correlate them with the
Profitability i.e. PBITM.

Ratio analysis

Years Fixed Inventory Debtor Return On Profit

Turnover Turnover Turnover Capital Margin
Ratio Ratio Ratio Employed

1999-2000 3.84 1.77 29.87 34.28 8.80

2000-2001 3.08 1.92 39.42 31.51 10.12

2001-2002 2.52 1.91 55.96 51.64 18.49

2002-2003 2.37 1.78 42.72 34.67 14.14

2003-2004 3.06 1.96 72.27 45.97 14.46

2004-2005 14.10 11.97 51.30 41.02 10.26

2005-2006 12.27 90.34 53.83 34.49 10.38

2006-2007 12.06 10.31 88.94 19.22 4.66

2007-2008 5.73 9.98 69.07 26.37 7.78

2008-2009 6.14 14.54 64.88 25.29 6.08

31 | P a g e
 Correlation analysis between Fixed Assets Turnover ratio &

PBITM

Correlations

Fixed Asset
Turnover Ratio Profit Margin

Fixed Asset Turnover Ratio Pearson Correlation 1 -.503

Sig. (2-tailed) .139

N 10 10
Profit Margin Pearson Correlation -.503 1

Sig. (2-tailed) .139

N 10 10

From the above table it is clear that there is the low correlation between FATR
& PBITM & their re lationship is mode rate negative corre lated and it is
insignificant.

Correlation analysis between Inventory Turnover ratio &

PBITM

Correlations

Inventory
Turnover Ratio Profit Margin

Inventory Turnover Ratio Pearson Correlation 1 -.140

Sig. (2-tailed) .700

N 10 10

Profit Margin Pearson Correlation - .140 1

Sig. (2-tailed) .700

N 10 10

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From the above table it is clear that there is the highly negative correlation
between ITR & PBITM i.e. if the ITR increases PBITM will decrease & their
relationship is insignificant.

Correlation analysis between Debtor Turnover Ratio &

PBITM

Correlations

Debtor Turnover
Ratio Profit Margin

Debtor Turnover Ratio Pearson Correlation 1 -.303

Sig. (2-tailed) .394

N 10 10

Profit Margin Pearson Correlation -.303 1

Sig. (2-tailed) .394

N 10 10

From the above table it is cl ear that the re is the highly negative correlation
between DTR & PBITM i.e. with the DTR incre ases PBITM will de crease & their
relationship is insignificant.

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 Correlation analysis between Return on Capital Employed &

PBITM

Correlations

Return On Capital
Employed Profit Margin

Return On Capital Employed Pearson Correlation 1 .911 **

Sig. (2-tailed) .000

N 10 10
**
Profit Margin Pearson Correlation .911 1

Sig. (2-tailed) .000

N 10 10

**. Correlation is signif icant at the 0.01 level (2-tailed).

From the above table it is clear that there is the high correlation between
ROCE & PBITM & their relationship is significant.

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 CONCLUSIO
N
The study is based on analysis of company s fund management. The objectives
of the training were primarily f ocused on the fund management and
profitability relationship in Britannia Industries Food Ltd. In this study,
Britannia Industries Food Ltd. belonging to the private se ctor has been
analyzed under following purposive sampling procedure. The data is selecte d
for the period of 10 years from 1999 -2000 to 2008-09 used in this study have
been taken from the pre vious years balance sheets and profit & loss accounts
available on the site of the company. I have analyze the relationship between
fund management & profitability for which I have taken some ratios which are
the determinant of fund management such as Debtors Turnover Ratio,
Inventory Turnover Ratio, Fixed Asset Turnover Ratio, Return on Capital
employed & correlate them with the Profitability i.e. PBITM.

There was a negative association between Fixed Asset Turnover Ratio ( FATR)
and profitability. The refore, the study of the inte rrelation between FATR and
profitability in this company conforms that the highe r the ratio of fixed asset
management lowers the profitability of the company. There is the low
correlation between FATR & PBITM & their relationship is moderate negative
correlated and it is insignificant.

A negative correlation between Inventory Turnove r Ratio (ITR) and

profitability was found in com pany. The association between ITR and
profitability was negative as well as insignificant Hence, these results provide
there is the highly negative correlation between ITR & PBITM i.e. if the ITR
increases PBITM will decrease & their relationship is insign ificant.

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The relationship between DT R and profitability was also negative in the
company. Therefore it is clear that there is the highly negative correlation
between DTR & PBITM i.e. with the DTR increases PBITM will decrease & their
relationship is insig nificant.

The study of the interre lation between Re turn on Capital Employed (ROCE)
and profitability in the company in highly correlated and almost equal. it is
positively significant. It conforms to the generally accepted rule that the
higher the efficiency of company s fund and capital management and their
returns, the higher the profitability. There is the high correlation between
ROCE & PBITM & their relationship is significant.

As par the traditional view, a low value of turnover ratio hits the compa ny's
profitability. During the last four decades, in the US, UK and some othe r
develope d countries, seve ral studies had been carried out on fund
management. A considerable num ber of these are conne cted with the
evaluation of the interrelationship between u tilization of funds and
profitability. The findings of their studies are conflicting in natu re.

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 SUGGESTIONS TO THE
ORGANISATION

y The funds should be managed in such a way that it has positive impact on
increasing the profitability of the company. Britan nia Industries Food Ltd.

y The higher the efficiency of company s fund and capital management,

asset management and returns, the highe r the profitability.

y The company should maintain the position and try to increase their net
profit in stability.

y The organizations give proper knowledge & training for unskilled

employees about their work.

y There should be proper record of wastage. It is good for the company.

y Organization should have proper staff in HR/Personnel and finance

department.

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 LEARNING
S

y How to use classroom knowledge in practical world.

y Knowing the manufacturing process knowing the organizational event.

y Interaction & communication with more people.

y Learned to have patience at the time of training.

y Interrelationship between the theoretical & p ractical as pects.

y I learn how to done entries in SAP when the purchase order of

Machine ry spare parts come & also learn entries of C -Form (49) in excel
sheets.

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 BIBLIOGRAPH
Y
Annual Report of Britannia Pvt. Ltd.( 2007 -08 and 2008-09)

Goel B. S, Production and O peration Management ,

Khan M Y and Jain P. K, Financial Management

Pandey I. M, Financial Management

www.scribd.com

www.britannia.co.in

www.wikipe dia.org

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