3. INDEPENDENT AUDITOR
REPORT
• Opinion
In their opinion the aforesaid consolidated financial statements give the information
required by the Companies Act, 2013 (‘the Act’) in the manner so required and give a true
and fair view in conformity with the Indian Accounting Standards (‘Ind AS’) specified
under Section 133 of the Act
• Basis For Opinion
We conducted our audit in accordance with the Standards on Auditing specified
under Section 143(10) of the Act. We believe that the audit evidence we have
obtained together with the audit evidence obtained by the other auditors in
terms of their reports referred to in paragraph 15 of the Other Matters Section
below, is sufficient and appropriate to provide a basis for our opinion.
4. Key Audit Matters
• The revenue of the Company consists primarily of the sale of food products
that are sold through distributors, modern trade, and direct sale channels
amongst others.
• The Company and its external stakeholders focus on revenue as a key
performance indicator and this could create an incentive for revenue to be
overstated or recognized before control has been transferred.
• Considering the aforesaid significance to our audit and the external
stakeholders, revenue recognition has been considered as a key audit
matter for the current year’s audit.
INDEPENDENT AUDITOR
REPORT
5. Key Audit Matters
• The Company has entered into several transactions Related part with
related parties during the year ended 31 March 2023 and also has
outstanding balances as of the year-end.
• The Company is involved in various direct tax, indirect tax, and other
litigations (‘litigations’) that are pending with different statutory authorities.
• In view of the uncertainty relating to the outcome of these litigations, the
significance of the amounts involved, and the subjectivity involved in
management’s judgement, this matter has been considered as a key audit
matter for the current year audit.
INDEPENDENT AUDITOR
REPORT
6. BOARD REPORT
FINANCIAL PERFORMANCE
Standalone and Consolidated
Financial Statements prepared in
accordance with Section 133 of the
Companies Act, 2013 read with the
rules made thereunder and Indian
Accounting Standards (IndAS)along
with the Auditor’s Report, form part
of the Annual Report.
7. • The Company achieved consolidated revenue growth of 15.3% and profit
growth of 52.3% for the financial year 2022-23.This was made possible by
robust cost-efficiency programs, brand promotions, distribution and
manufacturing efficiencies, and prudent price increases.
• The total dividend payout for the financial year 2022-23 amounts to 1,734.25
Crores.The Board has not recommended a final dividend for the financial year
2022-23.
• The Company does not propose to transfer any amount to the reserves for the
financial year 2022-23.
• During the year under review, there is no change in the paid-up equity share
capital of the Company
BOARD REPORT
8. • The Company’s robust and efficient supply chain management ensured the
availability of products across various geographies throughout the year.
• Health and Safety of the employees are of the highest priority for the
Company and it is committed to providing a safe working environment and
preventing accidents at the workplace.
• The Company leveraged its R&D capabilities to launch 24 innovative products
during the year.
• The Company’s ambitions are driven by the belief of giving back to the
environment and society while progressing towards the goal of becoming a
‘GlobalTotal Foods Company’.
BOARD REPORT
11. INCOME STATEMENT
ANALYSIS
• Revenue from operations during the year rose 15.31% on a year-on-
year (YoY) basis.
• The company'sTotal income increased by 15.02%YoY during the fiscal.
• Depreciation and Amortisation expenses increased by 14.76% in FY23
• Profit beforeTax increased by 45.92% in FY23
• Net profit margins during the year increased by 14.68% in FY23
13. BALANCE SHEET
ANALYSIS
• The company's current liabilities during FY23 stood at Rs 4,134.40 cr as
compared to Rs 4,147.14 in FY22, thereby witnessing a decrease of
0.31%.
• Total Current assets increased in FY23 by 19.18% from FY22.
• Overall, the total assets increased by 24.25% and total liabilities
increased by 17.13% in FY23
15. CASH FLOW
ANALYSIS
• Britania’s cash flow from operating activities (CFO) during FY23
stood at Rs 2,526.1 cr, which is 94.4% more than FY22
• Cash flow from investing activities (CFI) during FY23 stood at Rs
1,517.06 cr, an improvement of 66.54% on aYoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs
1,028.37 cr, which accounts for a 54.21% reduction from the previous
fiscal year.
• Overall, net cash flows for the company during FY23 stood at Rs
1678.84 cr from the Rs 1,459.43 cr net cash flows seen during FY22
which accounts for an increase of 15.03% on aYoY basis
17. Management Discussion and
Analysis
Industry Structure and Development
• The food industry was significantly impacted by high commodity prices,
rising interest rates, and the continuing impact of the Russia-Ukraine war
during the year. Further, the long-term effects of these factors continue to be
felt extensively, giving rise to fears of an impending recession in major
economies.
• Although commodity prices were volatile and inflation was at
unprecedented levels, the post-covid normalization of economic activities
supported growth throughout the year.
• The sustainability initiatives of yourCompany have begun to yield positive
results and yourCompany has achieved 100% plastic neutrality and other
sustainability goals as detailed in the Business Responsibility and
Sustainability Report.
18. Management Discussion and
Analysis
Opportunities andThreats (Biscuits and Bread)
• Biscuits: Due to high levels of household penetration in the biscuit category, the potential for growth in this
category is immense.The per capita consumption of biscuits in India continues to lag behind the levels seen
in developed countries.The possibilities for increasing consumption through innovative, healthy and
superior offerings in this category are numerous, which augurs well for yourCompany in view of the
established brands and capabilities.
The immediate threat in this category is from the sustained inflation in commodity prices and increasing
competition.
• Bread:There are significant opportunities to grow in this category by offering healthy and value-added
products and expanding in newer geographies.There has been significant consolidation within the category
over the last couple of years.
However, increasing competition and continued inflation in key commodities pose challenges to the
Company’s business.
19. MANAGEMENT DISCUSSION
AND ANALYSIS
Risks and Concern
• The global economy is becoming uncertain due to turmoil in financial markets,
geo-political tensions, persistently high inflation, and recessionary trends.
• While the Indian economy has exhibited remarkable resilience and growth so far, it
may not be immune to a protracted global slowdown or recession in advanced
economies.
• Any shortfall in monsoons due to the onset of ‘El Nino’ conditions as forecasted,
would also have a higher impact on rural consumption and the Indian economy as a
whole. Availability and prices of input materials like wheat, sugar, milk, and edible
oil could be affected, thereby posing severe risks to the business growth.
• Consumer sensitivity to price increases in packaged food products, migration to
low-cost products, intense competition, lower purchasing power, and changing
consumer preferences could pose challenges to the Company’s future growth
prospects.