JOB TRAINING PROJECT REPORT ON J. B.

MANGHARAM At

Submitted to the JIWAJI UNIVERSITY GWALIOR In The Partial Fulfillment on the requirement for the degree of BACHELOR OF COMMERCE B.Com By ANKITA MATHUR B.Com V th sem Under the supervision of
PROF , MINI SINGH KUSHWAH DEPT. OF HOD.

THE CITY COLLEGE GWALIOR

DECLARATION
I ANKITA MATHUR student of B.COM V SEM FOR THE CITY COLLEGE GWALIOR declare that all the information, facts and figures presented in this report are actually based on my experience & my open market research during the project with special references to J. B. MANGHARAM LIMITED.

I assure that this project is the result of my own sincere efforts and has not been submitted in any other institute for the award of any degree or diploma.

Date: Place: -

ANKITA MATHUR

B.COM V Sem

ACKNOWLEDGEMENT
The present work is dedicated to the persons who not only taught me, but continue inspire me in knowing the clandestine facts of workmanship. I bow in honor before these great teachers. The accomplishment of the present study became possible by the invaluable assistance and guidance of my professional guides to whom I may gratefully indebted. Firstly I would like to express my sincere gratitude to my faculty guide PROF , MINI SINGH KUSHWAH without whose invaluable guidance, moral support and encouragement my work would have ever assumed the present shape, research. I was indebted to my parents and friends for their moral support and possible efforts they made for me.

Date: Place: -

ANKITA MATHUR

B.COM V Sem

CERTIFICATE
This is to certify that Ms. ANKITA MATHUR student of BBA V SEM summer training project report Entitled J. B. MANGHARAM LIMITED programmed has completed under my guidance.

DATE: PLACE:

PROF , MINI SINGH KUSHWAH (MANAGEMENT .DEPT.)

CONTENTS
123456789-

Acknowledgement Introduction About Britannia Pvt. Ltd Objectives of this project Vision Values Our partners Research objective Research methodology planning system process

10- Dispatching 11- Dispatching 12- Other

information

Brand Name Brand Code

13-

Suggestions

14- Conclusion

Bibliography

CHAPTER -1 INTRODUCTION

INTRODUCTION
J. B. Mangharam is a very old factory; it was established in 1951 under the name of J. B. Mangharam & Company with the objectives 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 Britannia 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 technology 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 marketed for many activities.

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. is managed by J. B. Mangharam & Company but products are made of Britannia.

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

1. 50-50 2. Jim Jam 3. Bourbon 4. Nice Time

3. About Britannia Pvt. Ltd

The story of one of India's favourite 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 Indianness 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. 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 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 population 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 savour the results, happily ever after. Britannia in fact is an older company originally incorporated as Britannia Biscuit Company Ltd. in Kolkatta in 1918. Subsequently they moved to Mumbai during early seventies and finally shifted their headquarters to Bangalore. Currently Britannias 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 their business and Cake and Rusk about 2%. Britannia as all of us can recollect had a stated Mission to make every third Indian a Britannia Consumer. The different Biscuits which 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 manufactured by Britannia is Premium Bake White Sandwich Bread. The Rusk which is manufactured by Britannia is Premium Bake Cake and Rusk.

04 OBJECTIVE OF THIS PROJECT

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 knowledge.

a. General:
India is the second largest wheat producing country in the world. It is the second largest most important cereal grain crop in India next to rice and is cultivated on nearly 26 million hectares of land with an annual production of 72 million tones. Important wheat producing states in India are U.P., Punjab, M.P. and Rajasthan. Surplus wheat produced from these states is procured by Central and State Government.

The wheat cultivars grown in Northern 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 green 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 bakery 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. 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 heterogeneous, hence we need to adopt a segmented approach to reach out to customer, said Ms. Vinita Bali, 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: Bread, cakes, rusks and dairy are doing equally well The new logo was born is the core essence of Britannia- healthy, nutritious, optimistic and combining it with a delightful product range to offer variety and choice to consumers.

Then came another logo that is being used now-a-days:

Britannia is a first industry awarded with Certification of ISO-22000. Similarly, J. B. Mangharam in MP is first to be awarded with this certification.

5.VISION OF BRITANNIA
The story of one of India's favourite 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 mechanised 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 Indianness 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. 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 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 recognised 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

06 VALUES
It is said that without theory, practice is blind and without practice 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. Personnel management is that part of management concerned with the people at work and with their relationships within the organization. Training is the process of increasing the knowledge and skill for doing a particular job. Itis an organized procedure by which people learn knowledge and skill for a definite purpose. The purpose of training is basically to bridge the gap between job requirements and present competency of an employee. I am fortunate project I tried to find out the working methods and techniques, which is enough to get the opportunity of vocational training at J. B. Mangharam Foods Pvt. Ltd., Gwalior.

07 OUR PARTNERS
Tiger, launched in 1997, became the largest brand in Britannia's portfolio in the very first year of its launch and continues to be so till today. Tiger has grown from strength to strength and the re-invigoration in June 2005 and more recently, in Apr 2008 has further helped bolster its growth in the highly competitive glucose biscuit category .

Tiger is a Glucose biscuit, which comes with the added goodness of wheat and milk. It is for modern mothers who play an enabling role for their children to compete in today's world and thus want the best. Now Tiger Glucose has been fortified with "Iron Zor" with an attempt towards addressing the Iron Deficiency crisis the children of India face.

Over the years, Tiger has become the mass-market face of Britannia symbolising fun and energy in both urban and rural India, and transcending glucose biscuits.

Tiger Coconut : Delicious Coconut Flavoured Energy Biscuits, launched in 2001

Tiger Creams : Was Introduced in 2002 at just Rs 5 per pack. Tiger Cream is now available in Orange, Elaichi, Chocolate, Pineapple, Strawberry and Butterscotch flavours, and promises to bring more fun and more energy to children across the country.

Chota Tiger : Is an extension of brand Tiger launched nationally in May, 2007. It is mini sized poppable glucose biscuit with coloured sugar sprinkling. It comes in two variants: Milk Sparkies and Choco Sparkies Tiger Banana : Britannia is committed to help secure every child's right to Growth & Development through good food everyday. Purposefully taking forward the credo of 'Eat Healthy, Think Better ', we have launched a new variant under our power brand TIGER TIGER BANANA - power packed with IRON ZOR & and with the delightful taste of banana.

Britannia Good Day was launched in 1986 in two delectable avatars Good Day Cashew and Butter. Over the years, new variants were introduced - Good Day Pista Badam in 1989, Good Day Chocochips in 2000 and Good Day Choconut in 2004. This rich biscuit enjoys a fan following of consumers across all ages, loyal to the brand promise of a great taste evident from the visibly abundant ingredients. Good Day is amongst the fastest growing brands in Britannia's portfolio and is today the market leader with almost 2/3 share of the market. The brand is synonymous with everyday treats that infuse happiness into people's daily lives. After two decades of magnificent success; it was time to give the nation yet another reason to have a good day. Abundance, goodness, indulgence and now unrestrained joy - that is the message of this new campaign. The new TT ad is the uncontrollable expression of the ticket collector's happiness and joy that is stimulated by consumption of the cookie, that spreads cheer amongst the people around him creating an atmosphere of shared joy that's unorchestrated and straight from the heart. The celebration was taken to the IPL as Good day cheered along with a million cricket fans in the stadiums, each screaming and proclaiming "Ho gaya re Good Day". The dazzling brilliance of this endeavour, the contagious rhythm needs to be lived and spread through the nation, making 'Iska toh ho Gaya Re Good Day' a part of the common lingo and a way of life.

Good Day truly believes laughter and happiness are infectious, it transcends race, caste creed unifying humanity in an inclusive emotion.

The brand perseveres to infuse cheer, hearten the nation and enliven lives. With its rightful place on the front page of The Times of India, Good Day gifts the nation a priceless treasure, that of spreading JOY!

With a brand name like 50-50, can the product be anything but fun? Launched in 1993, 50-50 belongs to the family of crackers and is considered the "very very tasty tasty" snack.

Britannia 50-50 is the leader in its category with more than one-third of market share. The versatile and youthful brand constantly aims to provide a novel and exciting taste experience to the consumer. As a result, in 2001, the delicious Maska Chaska was launched as a variant of the original brand and became an instant success.

Kids may dislike drinking milk, but they love Britannia Milk Bikis! Milk Bikis has been trusted by mothers as a source of growth energy of milk and their loyalty to the brand has made it an integral part of t h e i r c h i l d r e n ' s

nutrition regimen

In 1996, Milk Bikis launched a variant called Milk Cream. These round biscuits come with smiley faces and are full of milk cream that makes them very popular with children. Milk Cream also promoted the idea of 'eating milk' in a yummy way, which makes mothers happy as well . To keep pace with the demands of the new generation and to bring milk nutrition to the masses in a delightful form, Milk Bikis, went one step further in the last quarter of 2006 in providing not just energy but developmental fuel for children. With a unique and attractive honeycomb design and an enhanced product experience, the new biscuit is now fortified with SMART NUTRIENTS 4 vital vitamins, iron and iodine, proven to aid mental and physical development in growing kids.

Britannia's oldest brand enjoys a heritage that spans the last 50 years - and going strong. In a market swamped with me-too products and where even the name 'Marie' has become generic, Britannia Marie Gold has maintained its stronghold. Today, the ever-popular Marie Gold is synonymous with the 'Tea Time Biscuit'. Its taste, crispiness and lightness make it a must for every tea break. It is the #1 brand in its category by a long shot.

RESEARCH OBJECTIVES
RESEARCH OBJECTIVE:

Objective is must for any study being done. It is an instrument for understanding thingbetter. Without an object it would be difficult to know how to proceed with the project.The objective gives a direction to the study. 1. To have knowledge about the inventory control measures and it management. 2. To study the problem & future prospect of J. B. Mangharam through inventorycontrol and disposal of scrap / obsolete items PROBLEM INDENTIFICATION: J. B. Mangharam is a contract packer of Britannia. Britannia has 100% equity of J. B. Mangharam. J. B. Mangharam is a subsidiary of Britannia and it does the job work for Britannia. Britannia provide all the raw material, packing material whether it is engineering material, ingredients like Maida, sugar, Chemical, Oil, Ghee or Packing Papers etc to J. R. Mangharam. J. B. Mangharam converts it into finished goods and gives it to Britannia; J. B. Mangharam cannot sell any of its Biscuits. Britannia has this right while J. B. Mangharam has to work out the order of Britannia. The staff of the department is from J. B. Mangharam and material provider is Britannia. I met the unit head Mr. S.K. Pandey and Commercial & Finance. Manager Mr. AldrinPashana furnished me with complete information of the company and told me that the company has been suffering loss since last Two Years. I was given the task to reduce Inventory Cost and Engineering Cost that the company heads. They gave me all the documentary articles related to the task and asked to reduce the Inventory

Cost. There are basically two types of Inventory cost:

1. Raw and packing material 2. Engineering store In India brittania is one of biggest brand & preminent food brand of the country. The main aspect or need for study to know about the present financed position of the company. To know about the employee relations & their commitment towards the company. To gather the information regarding distribution of its products. To determine global expansion of the company.

OBJECTIVES: To know about the status of the competitors. To analyse the business level strategy of the company. To analyse the financial performance of the company To know about the experts view of the company. To determine sales activities by understanding customers business. To analyse strengths and weakness of the company. To know about the key employees of the company.

09 RESEARCH METHODOLOGIES
Research Methodology A research process consists of stages or steps that guide the project from its conception through the final analysis, recommendations and ultimate actions. The research process provides a systematic, ned approach to the research project and ensures that all aspects of the research project are consistent with each other. Research studies evolve through a series of steps, each representing the answer to a key question. INTRODUCTION This chapter aims to understand the research methodology establishing a framework of evaluation and revaluation of primary and secondary research. The techniques and concepts used during primary research in order to arrive at findings; which are also dealt with and lead to a logical deduction towards the analysis and results. RESEARCH DESIGN I propose to first conduct a intensive secondary research to understand the full impact and implication of the industry, to review and critique the industry norms and reports, on which certain issues shall be selected, which I feel remain unanswered or liable to change, this shall be further taken up in the next stage of exploratory research. This stage shall help me to restrict and select only the important question and issue, which inhabit growth and segmentation in the industry. The various tasks that I have undertaken in the research design process are :

Defining the information need Design the exploratory, descriptive and causal research.

15- Dispatching

planning system

Optimum Utilization of Human Resources Training and Development helps in optimizing the utilization of human resource that further helps the employee to achieve the organizational goals as well as their individual goals. Development of Human Resources Training and Development helps to provide an opportunity and broad structure for the development of human resources technical and behavioral skills in an organization. It also helps the employees in attaining personal growth. Development of skills of employees Training and Development helps in increasing the job knowledge and skills of employees at each level. It helps to expand the horizons of human intellect and an overall personality of the employees. Productivity Training and Development helps in increasing the productivity of the employees that helps the organization further to achieve its long-term goal. Team spirit Training and Development helps in inculcating the sense of team work, team spirit, and inter-team collaborations. It helps in inculcating the zeal to learn within the employees. Organization Culture Training and Development helps to develop and improve the organizational health culture and effectiveness. It helps in creating the learning culture within the organization. Organization Climate Training and Development helps building the positive perception and feeling about the organization. The employees get these feelings from leaders, subordinates, and peers. Quality Training and Development helps in improving upon the quality of work and worklife. Healthy work-environment Training and Development helps in creating the healthy working environment. It helps to build good employee, relationship so that individual goals aligns with organizational goal.

 Health and Safety Training and Development helps in improving the health and safety of the organization thus preventing obsolescence. Morale Training and Development helps in improving the morale of the work force. Image Training and Development helps in creating a better corporate image. Profitability Training and Development leads to improved profitability and more positive attitudes towards profit orientation. Training and Development aids in organizational development i.e. Organization gets more effective decision making and problem solving. It helps in understanding and carrying out organizational policies Training and Development helps in developing leadership skills, motivation, loyalty, better attitudes, and other aspects that successful workers and managers usually display.

11Dispatching process
This appeal preferred by the Revenue is directed against the order dated 07.10.2008 passed by the ld. CIT (A) for the A.Y. 2005-06. 2. Briefly stated facts of the case are that the assessee is engaged in the business of manufacturing and sale of biscuits, filed return declaring total income of ` 1,11,51,565/-. During the course of assessment proceedings, the A.O. observed that during the year the assessee, J.B. Mangharam Foods Pvt. Ltd. (JBM) has made payment of ` 49,54,595/- on account of secondment charges to Britannia Industries Ltd. (BIL). The assessee was asked to explain the nature of the charges and method on which the payment was made. In response, the assessee submitted as under: ITA 254/M/09 2 J.B. Mangharam Foods Pvt. Ltd.k "Your assessee had paid ` 61.65 lacs and 49.54 lacs to BIL as Secondment charges for A.Y. 2004-05 and 2005-06 respectively towards Management employees seconded to JBM, the details of which has already been submitted. The following are our submissions, in this regard. (1) As per clause (b) of the 'Conversion Agreement', production of biscuits ordered by BIL is the responsibility of JBM. All the expenses relating to the above process other than cost raw material & packing material were to be borne by JBM; (2) JBM hired the Seconded staff from BIL, instead of hiring from outside, as it had an added advantage of getting the best available talent experienced in the process & procedures followed in this industry. It also had the option of charging the staff as per its requirements. (3) It was very difficult for JBM to hire Senior Technical & Management Personnel from outside due to highly competitive market. (4) As per the above mentioned Conversion Agreement, BIL was not responsible for meeting the cost of the seconded employees to JBM.

(5) There was no tax advantage to either of these companies as the recovery of Secondment charges was fully taxed in the hands of BIL, which is a regular tax paying company.

(6) The conversion charges paid to JBM comprises of all the expenses pertaining to production of biscuits including of seconded employees (Excluding cost of RM & PM). (7) JBM reimburses the total amount spent by BIL on these employees and there is no element of profit in it. (8) Finally, it is to be noted that secondment of employees is just one of the modes of hiring employees. However, the A.O. observed that the quality and process of manufacturing of biscuit is not a new for the assessee and the 'requisite expertise would have been available in house'. He further observed that "... Therefore any amount that BIL want to spent on the quality standards must be booked in the books of BIL and not that of the assessee company. The payments would be justifiable, if they are made by the market rate. Since the company had made at a rate which are at ITA 254/M/09

3 J.B. Mangharam Foods Pvt. Ltd.k very high therefore 20% of the above expenditure is being disallowed as being unreasonable and not for the purpose of business and profession. The disallowance on this account comes to ` 9,90,919/- and the same is added to the income of the assessee...". On appeal, the ld. CIT(A) after considering the assessee's submission observed that the disallowance made by the A.O. is without any basis, not sustainable and accordingly he deleted the estimated disallowance of ` 9,90,919/-.

3. Being aggrieved by the order of the ld. CIT(A), the Revenue is in appeal before us taking the following grounds of appeal:"1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) failed to appreciate the fact that the quality and process for manufacturing of the biscuit was not new for the assessee and the requisite expertise was available in the house.

2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in ignoring the fact that the payments were made at a rate which were very high and not at market rate.

3. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in ignoring the fact that it was the onus of the assessee to prove that the expenses incurred by it were made at a comparable market rate.

4. On the facts and in the circumstances of the case, the impugned order of the Ld. CIT(A) is contrary to law and consequently merits to be set aside and that of the Assessing Officer be restored."

4. At the time of hearing, the ld. D.R. submits that for the reasons as mentioned in the assessment order, the ld. CIT(A) was not justified in deleting the disallowance made by the A.O.

5. On the other hand, the ld. counsel for the assessee while reiterating the same submissions as submitted before the A.O. and ld. CIT(A) further submits that the assessee is a professionally managed ITA 254/M/09

4 J.B. Mangharam Foods Pvt. Ltd.k company solely managed by the team of seconded employees constituting the top level management, no amount is being paid to the directors of the company in any form. Hence, secondment charges amounting to ` 49.5 lacs on account of these 4 employees is fully justified. He further submits that the A.O. without any basis to show that the industry standards were lower that what was paid to seconded employees, has made the disallowance on estimation basis. He therefore submits that secondment of employees is just one of the modes of hiring employees and is being followed by the assessee since last many years and no disallowance was made by the department on this account. He further submits that the ld. CIT(A) was fully justified in deleting the disallowance made by the A.O. and his order be upheld.

6. We have carefully heard the submissions of the rival parties and perused the material available on record. We find that the facts are not in dispute inasmuch as there is no dispute that the disallowance of ` 9,90,919/- being 20% of ` 49,54,595/- of secondment charges was made by the A.O. on estimate basis without bringing any supporting material on record to show that the payment of secondment charges was made by the assessee is not laid out or expended wholly and exclusively for the purposes of the business or the same is excessive or unreasonable having regard to the fair market value of the services provided. This being so and in the absence of any other contrary material placed on record by the

Revenue against the findings of the ld. CIT(A) and also keeping in view of the rule of consistency, we hold that the adhoc disallowance of ` 9,90,919/- being 20% of ` 49,54,595/- of secondment charges is not sustainable in law and accordingly we are inclined to uphold the findings of the ld. CIT(A) in deleting the same. The grounds taken by the Revenue are, therefore, rejected. ITA 254/M/09 5 J.B. Mangharam Foods Pvt. Ltd.k 7. In the result, the Revenue's appeal stands dismissed.

 OTHER INFORMATION
The business continued to face inflationary pressure in key raw materials such as wheat flour, refined palm oil, skimmed milk powder and other dairy products, as well as energy costs. These were more than offset on the cost side through operational and procurement efficiencies, productivity improvements, cost reduction programs and on the revenue side through improved product mix and higher realisation, aided by strong consumer off take.

BRAND NAME

Brand Code
britannia has an excellent track record of rewarding its shareholders. The company has an uninterrupted record of distributing dividends for several decades. The dividends declared over the last 10 years are as under:

USA GHANA SAUDI ARABIA KUWAIT BAHRAIN OATAR SEYCHELLES SINGAPORE OMAN UAE

Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Dividend Percentage 40.00 40.00 50.00 55.00 45.00 55.00 75.00 100.00 110.00 140.00 150.00 150.00 180.00

BONUS

Year 1961 1966 1968 1971 1976 1984 1987 1990 2000

Bonus Particulars 1 equity share for every 2 shares held 4 equity shares for every 10 shares held 2 equity shares for every 3 shares held 2 equity shares for every 3 shares held 7 equity shares for every 10 shares held 2 equity shares for every 5 shares held 2 equity shares for every 5 shares held 1 equity share for every 2 shares held 1 equity share for every 2 shares held

Comparison with Competitors

Last Price Market Cap.
(Rs. cr.)

Sales Turnover 1,592.30 3,127.11 170.96 588.03 123.90 143.47 95.08

Net Profit

Total Assets

GlaxoSmith Con Britannia Lotte India Heritage Foods SKM Egg Product Agro Dutch Ind Sita Shree Food

930.95 1,565.55 525.00 81.65 18.10 11.45 10.35

3,915.16 3,740.12 197.99 94.14 47.66 38.43 22.81

188.33 180.40 -2.14 0.94 10.50 -32.05 1.39

646.36 861.92 77.67 272.44 82.15 482.41 56.82

CONCLUSION

The goal of the wealth maximization is affected by the efficiency with which inventory is managed. Inventories constitute about 60% of current assets of companies in India. The manufacturing companies hold inventories in the form of raw materials, work in progress and finished goods. Inventories facilitate smooth production and sales operation (transaction motive), to guard against the risk of unpredictable changes in usage rate and delivery time (precautionary motive), & to take advantage of price fluctuations (speculative motive). Inventories represent investment of a firms funds. The objectives of the inventory management should be the maximization of the value of the firm. Therefore the firm should consider: 1. Cost 2. Return 3. Risk factors

In inventory maintenance two types of costs are involved carrying cost & ordering cost .the firm should minimize the total cost (carrying plus ordering cost).The firm follows inventory control techniques as A-B-C technique EOQ & JIT techniques for better holding inventories.

BIBLIOGRAPHY
www. BRITANNIA.com www.moneycontrol.com www.financialexpress.com. www.wikipedia.com www.indianfinancelevel.com www.companyreviews.com www.webindia.com www.businesstimes.com