A Summer Training Project Report

On
Working capital analysis of UltraTech Cement Ltd
Jharsuguda Cement Work (JCW)

Submitted in the partial fulfillment of the requirement for two year Post
Graduate Diploma in Management Programme
  Session-2008-10
Under the Supervision of:    Submitted by:                  Submitted to:  
R.K Prusty                       Sachidananda Sahoo         Dr. Mohd. Zohair
Account Officer   Student (PGDM-III)         Lecturer
                              Roll No:   PG/14/096   

SCHOOL OF MANAGEMENT SCIENCES, VARANASI

(Approved by AICTE, Ministry of HRD, Govt. of India)  
 
A Summer Training Project Report
On
Working capital analysis of UltraTech cement ltd Jharsuguda cement work (JCW)
                    
      
                     Under the Supervision of:                   Submitted by:                                   
Submitted to:  
R.K Prusty                                           Sachidananda Sahoo                    Dr. Mohd. Zohair
Account Officer                                 Roll No:   PG/14/096                               Lecturer 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

DECLARATION  
 
 
 
 
 
 
 
 
 

DECLARATION 
      I, Sachidananda Sahoo, PGDM-III student of School Of Management Sciences,
Varanasi hereby declare that this project report titled “Working Capital Analysis of
UltraTech Cement Ltd. (JCW)” is the record of authentic work carried out by me
during the period from 18th May 2009 to 28th June 2009.
The project report has not been submitted to any other University or Institute for the
award of any degree/ diploma etc. 
 
 
 
 
 
 
Place: Varanasi                     Signature:   
Batch: 2008-10                       Date: 
 
 
 
 
 

CERTIFICATE FROM THE

COMPANY/ORGANISATION 
 
      This is to certify that Sachidananda Sahoo has prepared his summer training
Project report titled “WORKING CAPITAL ANALYSIS” of UltraTech Cement Limited at
Jharsuguda unit under my supervision and guidance from 18 th May 2009 to 28th June
2009. The work is original and has been done independently by the student.
      I further confirm that Mr. M. Sachidananda Sahoo bears a good moral character. 
 
 

                                                      Mr. R. K. Prusty
(External Guide) 
 
 
 
 
 
 
 
 
 
 
 

ACKNOWLEDGEMENT  
 
 
 
 
 
 
 
 
 
 
 
 ACKNOWLEDGEMENT
I would like to thank Prof.P.N.Jha Director School of Management Sciences, Varanasi
for giving me an opportunity for the summer training project in such an esteemed
organization. I also express my deep sense of gratitude and obligation to my guide Mr.
R.K.Prusty (ACCOUNTS OFFICER) of Ultra tech Cement Limited, Jharsuguda. His
enduring patience, encouragement, constant, inspiration, scholastic guidance has made
the project a success.
A million of words could say I feel indebted to Md. Joher Sir. I deeply grateful his
affection and suggestion without which this work would not have seen the light of the
day. I would also like to thank School of management Sciences Varanasi for its
sincere help and encouragement in this context for providing me with an industrial
exposure during the academic session 2008-2010.
      I express my hearty thanks to the office staff of Ultra tech Cement Limited for
their goodwill and sincere help.
      I am highly obliged to help rendered by Mr. B.M. Sahoo (Head HR & Admn.) &
Mr. Shantimaya Dash for his kind co-operation and help during the course of this
summer project. I am very much thankful to my family and friends for their co-
operation and help. Nothing can express their profound affection and inspiration. My
heart seems inadequate to express the eternal blessing and love that is bestowed upon
me by my parents. I shall remain indebted for ever to my family members for their
love, affection and constant inspiration.
      Lastly I bow before god, the benevolent savior whose blessings have given me this
hour of glory to celebrate.
                                                                                            Sachidananda Sahoo 
 
 
 
 
 
 
 

PREFACE  
 
 
 
 
 
 
 
  
 
 
 
 

PREFACE
The underlying aim of the summer training in UltraTech cement ltd. Jharsuguda
cement work is a sincere attempt to analyze its Working Management by making use
of different financial appraisal techniques. The data for the studies were obtained from
the published annual reports of the company. Among all the problems of financial
management, the problems of working capital management have probably been
recognized as the most crucial one. It is because of the fact that working capital
always helps a business concern to gain vitality and life strength. The objective of this
study is to critically evaluate working capital management as practiced in ultra tech
cement ltd. Jharsuguda. In this study, a sincere attempt has been made to analyze the
working of ultra tech cement ltd. Jharsuguda making use of different financial
appraisal techniques like ratio analysis, trend analysis, common-size analysis etc. The
period of study was 3year from 2006-07 to 2008-09. The data for the studies were
obtained from the published annual reports of the company. An effort has been made
to appraise the overall financial performance and efficiency of management, but the
scope and depth of study remained limited due to the limiting factors of time, and
resources. However, it is expected that the study will provide useful information for
better and easier understanding of the financial results of the company. This study has
been divided into six chapters. The first chapter has been devoted to the introduction
and last to the summary of conclusion and suggestion. The second chapter deals with
the objectives. Third chapter takes care of introduction to financial analysis. In
addition to this fourth chapter deals with significance of working capital, whereas fifth
chapter deals with the analysis aspects of working capital. The main source of data
has been the annual reports of the company. 
 
 
 
 
 
 

EXECUTIVE SUMMERY  
 
 
 
  
 
 
 

EXECUTIVE SUMMERY
      The management of the working capital is an integral part of management
analysis due to risk involved with it and return on investment of the concern is based
on how will the working capital is properly managed. The ability to gain insight
through the study of financial statement is vital to sound financial decision making. 
The basic data with which analyst must work are found in financial statement.
      So the ability to understand, interpret and use this information is the basic to an
understanding of finance. Various stake holders of business are keenly interested to
know regarding the financial position of the firm.
      To know the financial health of the company/business, analysis of financial
statement is a necessary. Fixed assets are essential for running of the business where
as current assets plays a very vital role in meeting day to day operations. Hence the
scope of managing the current assets increases as the business operation increases.
Here the question of “WORKING CAPITAL MANAGEMENT” rises. With the help of
tools & technique of financial statement analysis, one can know the liquidity,
solvency and profitability position of the company. 
      The present study is an attempt to find out soundness of Working Capital
Management at UltraTech Cement Limited and to study how far it handles the
financial resources particularly current assets i.e. Paying capacity of short term
obligations.
      For this, every possible effort has been made and adequate data has been
collected to have a better conclusion over the study. 
 
 
 
 
 
 
 
 
 
 
 CONTENTS  
 
 
 
 
 
 
 
 
 
 
 
 

CONTENTS
CHAPTER – I                                                                      Page No.
i. Introduction                                                                      15
ii. Introduction to working capital management            16
iii.Research Objectives                                                        17-18
iv.Methodology                                                                   19-21
CHAPTER – II
  Company Profile                                                                  22-55
i. About Aditya Birla Group
ii. Industry Profile
iii.Organization Structure
CHAPTER - III
  Analysis & its Interpretations                                          56-90
i. Calculation of Balance Sheet & Profit and Loss Account
ii. Calculation of Working Capital
iii.Ratio Analysis
 

CHAPTER – IV
i. Findings                                                                        91-98
ii. Suggestions
iii.Conclusions
Annexure
Bibliography
                                                 

INTRODUCTION TO THE TOPIC

Working capital is the life blood and controlling nerve center of a business. The
organization has to make available of funds to pay their day to day bills, wages, and
so on. The working capital is made up of the net current assets net of the current
liabilities. It is very important for a company to manage the working capital carefully.
This is particularly true where there is substantial time lag between making the
product and receiving the money for it. In this situation the company has paid out of
all the costs associated with making the product (raw material, labour and so on) but
not yet got any money for it. They must therefore ensure they have enough cash to do
this. This shows the cash coming into the business, what happens to it while the
business has it and then it goes.
      Between each stage of this working capital cycle there is a time lag for some
business this will be very long time to make and sale the product. They will need a
substantial amount of working capital to survive. Others through may receive their
cash very quickly after paying out for raw material etc. perhaps even before they have
paid their bills they will need a less working capital.
      For all business through they need to plan how much cash they are going to have.
The best way of doing this is a CASH FLOW FORECAST. “Working Capital is a life
blood and controlling nerve center of a business”, various aspects of working capital
determine the health and growth of an organization. Working capital refers to excess
of current assets over current liabilities, working capital measures how much in liquid
assets a company has available to build its business. The number can be positive or
negative, depending on how much debt the company is carrying. In general companies
that have a lot of working capital will be more successful since they can expand and
improve their operations of companies. With negative working capital may lack the
funds necessary for growth.
The above information about the working capital may influence me for making a
project on working capital management of UltraTech Cements ltd.
                          

          Introduction to the working capital:-

The management of current assets is similar to that of fixed assets in the sense that in
both case that a firm analyses their effects on its return and risk. The management of
fixed and current assets, however, differs in three important ways: first, in managing
fixed assets, time is a very important factor; consequently, discounting and
compounding techniques play a significant role in capital budgeting and a minor one
in the management of current assets. Second, the large holding of current assets,
especially cash, strengthens the firm’s liquidity position (and reduces riskiness), but
also reduces the overall profitability. Thus a risk-return trade off is involved in
holding current assets. Third, levels of fixed as well as current assets depend upon
expected sales, but it is only current assets which can be adjusted with sales
fluctuations in the short run. Thus, the firm has a greater degree of flexibility in
managing currents.
 Working Capital is a life blood and controlling nerve center of a business”,
various aspects of working capital determine the health and growth of an
organization. Working capital refers to excess of current assets over current
liabilities
 Working capital measures how much in liquid assets a company has available
to build its business. The number can be positive or negative, depending on
how much debt the company is carrying. In general companies that have a lot
of working capital will be more successful since they can expand and improve
their operations of companies.
                                           COMPONENT OF W.C
  CURRENT ASSETS                                               CURRENT LIABILITIES
 CASH/BANK/CASH EQUIVALENT                      BILLS PAYABLE
 BILLS RECEIVABLE                                              CREDITORS,SHORT TERM
LOAN
 DEBTORS                                                                 OUTSTANDING EXPENCES
 INVENTORIES,PREPAID EXPENCES                   BANK OVERDRAFT
 
 
 
 
 
 
RESEACH OBJECTIVES  
 
 
 
 
 
 
 
 
 
 

RESEACH OBJECTIVES 
 To know the components working capital Management in
ultra tech cement ltd.(JCW)
 To assertion management of working capital and to
calculate various ratios relating to working capital. 
 To study the liquidity position of the organization by 
analyzing the important components of working capital
 To know the financial stability of a business.
 

 To study the past performance of the working capital

management in the company, its present and future
prospect considering the change in working capital
position of company.
 To understand the various problems faced by the company
and the industry as a whole in proper implementation of
working capital management. The necessary precaution if
possible to undertaken to prevent and control them
 To suggest the steps to be taken to increase the efficiency
in management of working capital.
 
 
 
 
 
 
 
 
 
 

METHODOLOGY  
 
 
 
 
 
 
 
 
 

METHODOLOGY
RESEARCH DESIGN
      The design chosen for this study is descriptive research design. The rationale
behind using the descriptive research design is that the study was carried on working
capital management for which the source is annual reports and cost report etc.
The financial analysis is done keeping special emphasis on balance sheet, profit &
loss account, cost report and analysis.
The data are collected from the following sources:
      
      2. Secondary sources:-
            Secondary sources of data means that data those are already available i.e.
that data which is already collected by someone else and already passed through
statistical process. The secondary sources cover investigation of company’s manuals,
magazines, internet and records. 
PROCEDURE 
       The work was carried out in the office of UltraTech cement plant at Dhutra.
secondary data were acquired for the smooth and successful completion of the
study. secondary data collected from the balance sheet of the project and annual
reports etc. 
 
 

RATIO ANALYSIS
                              1. CURRENT RATIO
2. LIQUID RATIO
3. INVENTORYTURN OVER RATIO
4. DEBT TURN OVER RATIO
5. WORKING CAPITAL TURN OVER RATIO
6. CREDITOR TURN OVER RATIO
                     7. OPERATING CYCLE,  
GRAPHICAL TOOLS
1. TABLES
2. GRAPHS 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

COMPANY PROFILE  
 
 
 
 
  
 
 
 
 
 
 
 

COMPANY PROFILE
About Aditya Birla:- 
The Aditya Birla Group is India’s first multinational corporation. Global in vision,
rooted in Indian values, the Group is driven by a performance ethic pegged on value
creation for its multiple stakeholders. 
Currently a US $24 billion conglomerate, with a market capitalization of US $ 23
billion, it is anchored by an extraordinary force of 100,000 employees belonging to
over 25 different nationalities. Over 50 per cent of its revenues flow from its
operations across the world. The Group’s products and services offer distinctive
customer solutions. Its 74 state-of-the-art manufacturing units and sectoral services
span India, Thailand, Laos, Indonesia, Philippines, Egypt, Canada, Australia, China,
USA, UK, and Germany. Aditya Birla Group is a dominant player in all of the sectors in
which it operates. Among these are viscose staple fibers, non-ferrous metals,
cement, viscose filament yarn, branded apparel, carbon black, chemicals, fertilizers,
sponge iron, insulators, financial services, telecom, BPO, and IT services. The group
has been adjudged “The Best Employer” & among top 20 in Asia by the Hewitt –
Economic Times & Wall Street Journal Study. 
GLOBALLY, THE GROUP IS:- 
 The largest aluminum rolling company.
 No one in viscose staple fiber.
 The Third largest producer of insulators.
 The Fourth largest producer of carbon black.
 The Eleventh largest cement producer.
 The best energy efficiency fertilizer plant.
 Among the world’s top 15 BPO companies & among India’s top three.
 
IN INDIA, THE GROUP IS:- 
 A Premier branded garments player
 The Second largest player viscose filament yarn.
 Among the first five mobile telephony players.
 Leading player in life Insurance & Assets management.
 
 
 

GROUP COMPANIES:- 
 Grasim Industries Ltd.
 UltraTech Cement Ltd.
 Hindalco Industries Ltd.
 Aditya Birla Nuvo Ltd.
 
 

INDIAN COMPANIES:- 
 PSI Data systems.
 TransWorks.
 Essel Mining & Industries Ltd.
 Idea Cellular Ltd.
 Birla NGK Insulators.
 Shree Dig Vijay Cell
 
 
 
 

INTERNATIONAL COMPANIES:- 
 Thai Rayon (Thailand)
 Century Textiles (Thailand)
 Thai carbon Black (Thailand)
 Aditya Birla Chemicals Ltd.(Thailand)
  Indo Phil Textiles Ltd. (Philippines)
 Indo Phil Cotton Ltd. (Philippines)
 PT Indo Bharat Rayon (Indonesia)
 PT Elegant Textile Industry (Indonesia)
 Alexander Carbon Black Company (Egypt)
 Liaoning Birla Carbon (China)
 A V Cell Industry (Canada)
 A V Nackawic Industry (Canada)
 Aditya Birla Minerals Ltd.(Australia)
 Birla Laos Pulp and Paper Plantation Company (Laos)
 
 

JOINT VENTURES:- 
 Birla Sun Life Insurance
 Birla Sun Life Asset Management Company Ltd.
 Birla Sun Life Distribution Company Ltd.
 Tranfac Industry Ltd.
 
 
 
 
 
 

GLOBAL VISION, INDIAN VALUES

A US $29.2 billion corporation, the Aditya Birla Group is in the league of Fortune
500. It is anchored by an extraordinary force of 130,000 employees, belonging to 30
different nationalities. In India, the Group has been adjudged "The Best Employer in
India and among the top 20 in Asia" by the Hewitt-Economic Times and Wall Street
Journal Study 2007. Over 50 per cent of its revenues flow from its overseas
operations.
The Group operates in 25 countries — India, UK, Germany, Hungary, Brazil, Italy,
France, Luxembourg, Switzerland, Australia, USA, Canada, Egypt, China, Thailand,
Laos, Indonesia, Philippines, Dubai, Singapore, Myanmar, Bangladesh, Vietnam,
Malaysia and Korea.
Globally the Aditya Birla Group is:
:: A metals powerhouse, among the world's most cost-efficient aluminium and
copper producers. Hindalco-Novelis is the largest aluminium rolling company. It
is one of the three biggest producers of primary aluminium in Asia, with the
largest single location copper smelter
:: No.1 in viscose staple fibre
:: The fourth largest producer of insulators
:: The fourth largest producer of carbon black
:: The 11th largest cement producer globally, the seventh largest in Asia and the
second largest in India
:: Among the world's top 15 BPO companies and among India's top four
:: Among the best energy efficient fertiliser plants
 
In India:
:: A premier branded garments player
:: The second largest player in viscose filament yarn
:: The second largest in the chlor-alkali sector
:: Among the top five mobile telephony companies
:: A leading player in life insurance and asset management
:: Among the top three supermarket chains in the retail business
Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where success
does not come in the way of the need to keep learning afresh, to keep experimenting. 
Beyond business — the Aditya Birla Group is:
: Working in 3,700 villages
:
: Reaching out to seven million people annually through the Aditya Birla Centre
: for Community Initiatives and Rural Development, spearheaded by Mrs.
Rajashree Birla
: Focusing on: health care, education, sustainable livelihood, infrastructure and
: espousing social causes
: Running 42 schools and 18 hospitals
:
Aditya Birla Novo: Aditya Birla Nuvo is a diversified business conglomerate with
interests in viscose filament yarn (VFY), carbon black, branded garments, fertilizers,
textiles and insulators. Aditya Birla Novo, through its subsidiaries and joint ventures
has made forays into life insurance, telecom, business process outsourcing (BPO), IT
services, asset management and other financial services.
Ultra Tech Cement: The Groups cement business is under both Grasim and
UltraTech’s cement. Together the two companies under the group account for a
substantial share of the cement market in India. UltraTech’s cement comprises the
erstwhile cement business of L&T which was acquired by the group. Ultra Tech
Cement manufactures and markets Ordinary Portland Cement, Portland Blast Furnace
Slag Cement and Portland Pozzolana Cement. It is the country’s largest exporter of
cement clinker. Its export market includes countries around the Indian Ocean, Africa,
Europe and the Middle East. 
GRASIM INDUSTRIES LIMITED is the flagship company of Aditya Birla Group.
Grasim
Itself is a multi-product company with cement being the major area of focus. Now a
day the cement division of the Grasim industries Limited works under the banner of
the Ultratech Cement limited (UTCL). In August 1998, Grasim acquired the well-
known Dharani Cements Ltd situatedat Reddipalayam, Perambalur District. Soon
after the acquisition, Grasim embarked on a mostprestigious project of one million top
capacity cement plant at the existing locations. 
 
READY MIX CONCRETE 
Concrete is a hardened building material created by combining a binder i.e. cement
(commonly Portland cement), aggregate (generally gravel and sand), water and
admixtures. Although people commonly use the word cement as a synonym for
concrete, it is only one of several components in modern concrete. As concrete dries,
it acquires a stone-like consistency that makes it ideal for constructing roads, bridges,
water supply and sewage systems, factories, airports, railroads, waterways, mass
transit systems. Concrete is used more than any other man made material on the
planet. It was in 1824, when Joseph Asp din and Isaac Charles Johnson refined
synthetic cement that Portland cement came into existence. However, it was not
widely used until World War II, when several large docks and bridges were
constructed. Today, different types of concrete are categorized according to their
method of installation. Ready or pre-mixed concrete is batched and mixed at a central
plant before it is delivered to a site. This
type of concrete is sometimes transported in an agitator truck and is also known as
transit-mixed concrete. Shrink-mixed concrete is partially mixed at the central plant
and its mixing is then completed en route to the site. The secret of good concrete lies
in the degree of quality control and technical parameters of the mix. UltraTech’s, the
Aditya Birla Group Company, which makes good concrete better, maintains a high
level of precision in its quality assurance procedures and produces world-class
concrete that comes in a package of highly reliable durability, strength and
performance. The making of concrete is a science as well as an art. Science because
the right proportions of allthe ingredients as per the standard Bureau of Indian
Standards (BIS) code assures the desired strength and durability. And an art because it
is not just the accurate proportioning which determines the quality of concrete, but the
way it is mixed, placed, compacted, cured and protected also play a great
role.UltraTech Concrete makes good concrete better because the company takes extra
care to make sure it is perfect both ways — proportion wise and handling wise. To
ensure quality, each and every sample of concrete passes through stringent tests in
fresh and hardened state to ensure strength, durability and performance. 
 
How does UltraTech’s Concrete make good concrete better?
Right from selecting the raw materials to batching and mixing, transportation, placing
of concrete till testing of concrete — UltraTech’s ensures flawless operation in every
stage. Clearly, it's all about putting together the right ingredients for that perfect
recipe.
Cement
Fresh cement, protected from weathering conditions and influence of external
environment such as air, moisture etc., is an important ingredient of concrete.
UltraTech’s Concrete plant uses fresh cement directly procured from the cement
plants through cement bulkers, which in turn pump indirectly into the concrete silos
thus protecting it from the external environment.
Coarse aggregates
Coarse aggregates — free from clay, weeds and other organic materials, cubical or
rounded with combination of different sizes and not elongated or flaky — ensure
proper strength of the concrete and make it non-porous. These coarse aggregates are a
vital ingredient of good concrete. UltraTechConcrete directly sources the aggregates
from selected and approved suppliers, tested as per BISfor size, shape, gradation,
impact value and crushing value etc.
Fine aggregate
Sand, the fine aggregate used in concrete must be free from silt, clay, salts and organic
materials toprevent shrinkage cracks, which affect the concrete quality and durability.
UltraTech’s Concrete directly purchases sand from selected and approved suppliers
tested for moisture content. To maintain the correct water-cement ratio, UltraTech’s
Concrete plants use moisture sensors and an automatic water correction procedure.
Water
Potable water, free from impurities such as oil, alkalis, acids, salts, sugar, and organic
materials is ideal for concrete. UltraTech’s Concrete uses water tested at frequent intervals and
uses water purifiers whenever necessary.
Admixture 
Admixtures used in concrete during mixing ensure its workability (the ease of placing of
concrete in moulds) and the setting time is carefully chosen from reputed companies. The
workability is measured for every batch through the slump cone and is controlled using a
scientific method of dosing. UltraTech’s Concrete is equipped with computerized batching and
mixing plants to strictly monitor the quality of the concrete. It uses a computerized recipe for the
raw mix design (cement: sand : coarse aggregate : water : admixture) and quantities of raw
materials are weighed automatically as per the design mix. The water-cement ratio, very
important to satisfy the strengthened durability criteria of concrete, is pre-designed through a
scientific mix design as per the BISstandards and kept constant throughout to maintain the
consistency in quality for a particular mix.
Mixing is generally done through high efficiency pan mixers (machine mixers / turbo mixer) to
ensure uniform and consistent quality concrete. 
Transportation 
The transport of concrete from its place of mixing to the delivery point is very critical, as there
impossibility of the concrete drying out and losing its workability and plasticity.
UltraTech’s Concrete transports concrete from its ready mix concrete plants to the site through
transit mixers. Further, the concrete is pumped to the actual point of concreting using high
efficiency concrete pumps, thus maintaining the homogeneity of the concrete throughout the
transit till the final deposition. Placing the concrete is expedited scientifically by specialized
delivery trucks. Qualified and experienced engineers monitor the entire operation. It is anchored
by an extraordinary force of 100,000 employees, belonging to 25 different nationalities. In India,
the Group has been adjudged “The Best Employer in India and among the top 20 in Asia” by
the Hewitt-Economic Times and Wall Street Journal Study 2007. Over 50
per cent of its revenues flow from its overseas operations.
Beyond business — the Aditya Birla Group is: 
Working in 3,700 villages reaching out to seven million people annually through the Aditya
Birla Centre for Community Initiatives and Rural Development, spearheaded by Mrs. Rajashree
Birla Focusing on: health care, education, sustainable livelihood, infrastructure and espousing
social
cause. . 
 
 
 
 
 
 
 
 

Management Team
Board of Directors 
Mr. Kumar Mangalam Birla, Chairman
Mr. S. Aga
Mr. D. Bhattacharya
 Mr. S.K. Jain
Dr. S. Misra
Mr. B.K. Singh
Mr. K.K. Maheshwari
Mr. Vikram Rao
Mr. Ajay Srinivasan
Mr. S. Misra, Managing Director

              Executive President & Chief Financial

Officer
Mr. K.C. Mishra

                      Chief Manufacturing Officer

Mr. S.K. Maheshwari

Company Secretary
Mr. S.K. Chatterjee
 

MANAGEMENT PROFILE 
                                                                  
Mr. Kumar Mangalam Birla  
Chairman, the Aditya Birla Group 
 
 
 
 
 
 
Mr. Kumar Mangalam Birla is Chairman of the US$ 29.2 billion Aditya Birla Group
and India’s first truly multinational corporation. An iconic figure, Mr. Birla holds
several key positions on various regulatory and professional boards. He is a director of
the Central Board of Directors of the Reserve Bank of India and chairman of the Staff
Sub-Committee of the Central Board of the Reserve Bank of India. He serves on the
Prime Minister of India’s Advisory Council on Trade and Industry. He is the chairman
of the Board of Trade constituted by the Union Minister of Commerce & Industry,
also chairman of the Ministry of Company Affairs’ Advisory Committee.
Additionally, he is on the National Council of the Confederation of Indian Industry
(CII); the Apex Advisory Council of the Associated Chambers of Commerce and
Industry of India, New Delhi and the Advisory Council for the Centre for Corporate
Governance.
He served as the chairman of Securities and Exchange Board of India’s Committee on
Corporate Governance, and as chairman of SEBI’s committee on insider trading. He
authored the nation’s first report on corporate governance. 
 
On the academic front, Mr. Birla is the Chancellor of the Birla Institute of Technology
& Science (BITS), Pilani. He is also a director on the G.D. Birla Medical Research &
Education Foundation. Additionally, he is on the Asian Regional Advisory Board of
the London Business School which provides counsel on the school’s strategy and
curriculum. He is also Honorary Fellow of the London Business School (LBS), a title
conferred upon him by the governing board of the LBS.
Several accolades have been showered on Mr. Birla such as the Asia Pacific Global
HR Excellence – Exemplary Leader Award and NDTV’s “Global Indian Leader of the
year”, and “Most Socially Responsible Leader” by Outlook Business Magazine – all
in 2007. Earlier, the Lakshmipat Singhania – IIM, Luck now National Leadership
Award – 2006, Business Leader, was conferred on Mr. Birla by the Prime Minister.
Mr. Birla also has been named the World Economic Forum’s “Young Global Leader“,
“Ernst & Young Entrepreneur of the year", the Economic Times – “Business Leader
of the year”, Business India’s "Business Man of the year”, Business Today’s “Young
Super Performer in the CEO Category”, NITIE’s “Business Visionary”, and the
Bombay Management Association’s “Management Man of the year”.
In recognition of his exemplary contribution to Indian business, the Banaras Hindu
University awarded the D.Litt (Honoris Causa) Degree to him. The Honorary Degree
of Doctor of Science (Honoris causa) was bestowed on Mr. Birla in recognition of his
invaluable contribution in the field of business administration by the G.D. Pant
University of Agriculture & Technology, Pantnagar. For the development of
technology and for his involvement in bringing the country at par with other countries
in the field of industries, the SRM University in Tamil Nadu conferred the Degree of
Doctor of Literature. To salute his entrepreneurial excellence and exemplary
contribution to Indian business, the All India Management Association conferred its
Honorary Fellowship on him. Likewise, the National HRD Network named him
“Outstanding Business Man of the year”. 
 
A chartered accountant, Mr. Birla earned an MBA from the London Business School,
where he is also an Honorary Fellow. Mr. Kumar Mangalam Birla and his wife, Mrs.
Neerja Birla, have three children, Ananyashree, Aryaman Vikram and Advaitesha. 
 
 
 
 

                    
                                                 

           Mr. Sanjeev Aga 

 
Managing Director, Idea Cellular Limited and Director 
Aditya Birla Management Corporation Private Limited 
 
 
Mr. Sanjeev Aga is Managing Director of Idea Cellular Limited, a leading Indian
mobile services operator. He is a Director on the Board of the Aditya Birla
Management Corporation, and is the Chairperson of the Cellular Operators
Association of India.
In a business career commencing in 1973, Mr. Aga has held senior positions in Asian
Paints, Chellarams (Nigeria), and Jenson & Nicholson. In 1987, he joined Blow Plast
to head the furniture business, was made Chief Executive of Mattel Toys in 1990, and
in January 1993 was appointed Managing Director of Blow Plast with multi-business
responsibility including the flagship VIP luggage business.
In November 1998, he was appointed as CEO of the Aditya Birla Group's telecom JV,
Birla AT&T Ltd. He led the company through a period of fast-paced change, through
expansion and acquisition, and merger with Tata Cellular Ltd., to be CEO of what
became Idea Cellular. From May 2005 until October 2006, Mr. Aga was Managing
Director of Aditya Birla Nuvo Ltd., a conglomerate whose interests span diverse
group businesses. Mr. Aga is an Honours graduate in Physics from St. Stephen's
College, Delhi and a post graduate from the Indian Institute of Management, Kolkata 
 
 
 
 
 
 
 
 
 
Mr. Debu Bhattacharya 
Managing Director, Hindalco Industries Limited,
Vice Chairman
Novelis Inc. and Director
Aditya Birla Management Corporation Private Limited  
 
 
 
 
 
 
 
 
 
Mr. D. Bhattacharya heads Aditya Birla Group's (one of the largest and most
respected business Groups in India) non-ferrous metals business, and is the Managing
Director of Hindalco Industries Limited, a Fortune 500 company with revenues
(consolidated) in excess of Rs.60,000 crore. With Hindalco acquiring Novelis, the
world's largest aluminium rolling company in May 2007, Mr Bhattacharya became the
Vice Chairman of Novelis Inc.
He is the Chairman of Utkal Alumina International Limited and of Aditya Birla
Minerals Limited, a wholly-owned copper subsidiary of Hindalco in Australia, which
runs two copper mines — one in Nifty and the other one in Mt. Gordon.
Mr. Bhattacharya is Director of Aditya Birla Management Corporation Limited; Birla
Management Centre Services Limited; Dahej Harbour and Infrastructure Limited (a
wholly-owned subsidiary of Hindalco), Minerals & Minerals Limited and Aditya
Birla Power Company Limited.
Other positions held by Mr. Bhattacharya include Hon. President — Aluminium
Association of India (AAI); Director — International Aluminium Institute (IAI),
Director — The Fertiliser Association of India (FAI); Member — Expert Committee
of Agriculture and Agro-Industry of Associated Chambers of Commerce and Industry
of India; and; Member — Industrial Advisory Council for the state of Madhya
Pradesh.
Before taking over as Managing Director of Hindalco Industries Limited, Mr.
Bhattacharya was the Managing Director of erstwhile Indo Gulf Corporation Limited.
Mr. Bhattacharya is the recipient of the prestigious "India Business Leader of the Year
Award (IBLA) 2005", and the much coveted "The Asia Corporate Citizen of the Year
Award (ABLA) 2005".
Mr. Bhattacharya is the recipient of the LEXI Award 2007 for Strategic & Leadership
Excellence.
Mr. Bhattacharya earned a B. Tech (Hons.) in Chemical Engineering from IIT,
Kharagpur, and a B.Sc. (Hons.) in Chemistry from Presidency College, Kolkata. 
Mr. K. K. Maheshwari  
Head, Global Chemical Business,  
Global Trading Business and Management Services Division 
Aditya Birla Group

 
Mr. K. K. Maheshwari heads the Aditya Birla Group's global Chemical Business
which spans seven companies in three countries — India, Thailand and China. The
Group’s Chemical Business comprises of chlor-alkali, inorganic and organic fluorine
chemicals, phosphates for industrial and food application, epoxy resins,
epichlorohydrine, sulphur based chemicals, hydrogen peroxide and viscose filament
yarn. He is also responsible for the Group's global trading business with its main
offices at Dubai and Singapore and 12 branches spread across Asia, Middle East and
Africa and the Management Services Division. Together, they record revenues of over
US $2.5 billion. Mr. Maheshwari is a director of Aditya Birla Management
Corporation Private Ltd, the Group’s apex decision making body that provides
strategic direction to the various companies in its fold.
Mr. Maheshwari has been with the Aditya Birla Group for 23 years. In the initial
period, he was responsible for setting up the first Corporate Finance Division of the
Group in Indian Rayon and Industries Ltd (now renamed as Aditya Birla Nuvo Ltd).
He was also closely involved in the restructuring of the Group's operations and
acquisitions for business growth.
In 1988, he moved to Thailand where he was responsible for Thai Polyphosphate and
Chemicals Co. Ltd. and Thai Organic Chemicals Co. Ltd. He moved back to India in
early 2001 to look after the Group's Chemical Business in India. Since March 2005,
Mr. Maheshwari has been responsible for the Group's global Chemical Business. In
2007, he became head of the trading business, bringing in sharp focus on product
verticals and processes. 
 
An erudite speaker, he has been invited to speak at the University of Michigan
Business School; the Global Chemical Leaders Summit and the Global Trader
Summit, both in Singapore; the S P Jain Institute of Management and the Institute of
Chartered Accountants of India, among others. He is the president of the Association
of Man-Made Fibre Industry of India, member of the executive committee of the
Indian Chemical Council and member of the National Chemical Committee, FICCI.
Prior to joining the Aditya Birla Group, Mr.Maheshwari held senior positions in
finance function with Blow Plast Ltd and Zenith Ltd.
Mr. Maheshwari was a member of the Ahluwalia Committee on State Specific
Reforms for State Electricity Boards constituted by the Ministry of Power. While in
Thailand, Mr. Maheshwari served as a trustee and was a member of the Board of New
International School of Thailand in Bangkok.
Mr. Maheshwari holds a masters degree in commerce (Business Administration) and
is a fellow member of The Institute of Chartered Accountants of India having topped
the CA exams in 1976. 
 
Mr. Vikram Rao 
Director, Aditya Birla Management Corporation Private Limited

 
Mr. Vikram Rao is Director, Aditya Birla Management Corporation Private Limited.
He heads the Acrylic Fibre Business and supervises the overseas spinning business of
the Group. 
 
Mr. Rao joined the Group in 1999 from Arvind Mills Limited where he was the
President of the Shirting Division and Bed and Bath Projects. He also held additional
responsibility as the President of Knit Fabrics and Garment Division. 
 
Mr. Rao started his career with Madura Coats in 1975 as a management trainee and,
over the years, became the President of the Textile Division, reporting to the
Chairman of Madura Coats.
He holds the chairmanship of the Confederation of Indian Industries (CII) task force
on textiles for Karnataka. He was awarded the Super Achiever Award by the Indira
Group of Institutes, Pune in 2003. Mr. Rao is well known and highly regarded in the
textile and apparel industry in India. 
 
Mr. Rao holds degrees in chemical engineering and business management. He is
married, with two children and is a tennis and theatre enthusiast. 
 
 
 
 
 
 
 
 
 
UltraTech Cement Limited Jharsuguda
cement work, orissa 
 
 
 
 
 
 
 
 

UltraTech Cement Limited

UltraTech cement Limited, Jharsuguda Cement Works which is a part of Aditya
Birla Group was previously under the L&T group of companies. The Cement
division of L&T was demerged in 2004 after Grasim Cement Ltd. made the 30%
open offer for equity shares, gaining control over the new company, christened
UltraTech. Besides the long term strategic value in the wake of rising demand for
cement, with the growth of housing and infrastructure sectors in the country, the
acquisition brings significant synergy gains to the parent company. 
UltraTech cement Limited, a Grasim subsidiary has an annual capacity of 17 million
tons. It manufactures and markets Ordinary Portland cement, Portland Blast Furnace
Slag Cement and Portland Pozzolana cement, as a part of the eight biggest cement
manufacturer of the world. 
Ultratech has five integrated plants, five grinding units and three terminals-two in
India and one in Sri Lanka. These include an integrated plant and two grinding units
of the erstwhile Narmada Cement Limited, a subsidiary which has been amalgamated
with the company in May 2006. 
Ultratech is the country’s largest exporter of cement clinker. The company exports
over 2.5 million tons per annum, which is about 30% of the country’s total exports.
The export markets span countries around the Indian Ocean, Africa, Europe and the
Middle East.
 Incorporated on 24th August 2000 as L&T cement Limited.
 Cement business of L&T Ltd. demerged and vested in company in 2004.
 Grasim acquired management control in July 2004.
 Together with Grasim the largest cement producer in India.
 Name changed to UltraTech Cement Limited with effect from 14th October
2004.
 

Details of UltraTech’s production capacities

  Plant/Unit Kiln  capacity (tdp) Capacity    (million tpa)

A Composite integrated plants*    

  Andhra Pradesh Cement Works 8000 2.3
  Awarpur Cement Works 9500 3.3
  Gujarat Cement Works 15000 5.3
  Hirmi Cement Works 8050 1.6
  Narmada Cement–Jafrabad Works 4350 0.4
B Grinding Units    
  Arakkonam Cement Works   1.2
  Jharsuguda Cement Works   0.8
  Narmada Cement-Ratnagiri Works   0.4
  Narmada Cement-Magdala Works   0.7
  West Bengal Cement Works   1.0
  Total   17.0
 
* The integrated plant has their own mines, their captive power plants for running
the plants. 
 
 
 
 
 

ACHIEVEMENTS
All the plants of the UltraTech are ISO 14001 Environment Management Systems certified and
adhere to OHSAS 18001 standards. Clean technologies and processes that combined economic
progress and sustainable environment have been adopted at UltraTech’s plants at Awarpur and
Ratnagiri in Maharashtra; Kovaya, Jafrabad and Magdalla in Gujarat; Hirmi in Chhattisgarh;
Arakkonam in tamil Nadu; Tadipatri in Andra Pradesh; Jharsuguda in  Orissa and Durgapur in
West Bengal.
Plant ISO   9001 ISO  14001 OSHAS 18001

Awarpur cement Works   

Hirmi Cement Works   
Jharsuguda cement Works   
Gujarat cement Works   
Andhra Pradesh Cement Works   
Arakkonam Cement Works   
Narmada Cement Company Ltd.   
 
Jharsuguda Cement Works is an ISO certified company. It has been awarded with ISO: 9001,
ISO: 14001 & ISO: 18001 certificates.
ISO: 9001-
This is the certificate that gives important on QMS (Quality Management Systems) that always
gives importance to quality of the product. 
ISO: 14001-
This certificate gives importance to EMS (Environment Management Systems) where
environment always matters.
OHSAS: 18001-
OHSAS stands for Occupational Health & Safety Assessment Series. OHSAS give importance to
health & safety of the employee within company. 
 

TYPE OF CEMENT PRODUCED 

UltraTech’s products include Ordinary Portland cement, Portland Pozzolana cement
and Portland Blast Furnace Slag cement. 
Ordinary Portland cement:- 
      Ordinary Portland cement is the most commonly used cement for a wide range of
applications. These applications cover dry-lean mixes, general-purpose ready-mixes
and even high strength pre-cast and pre-stressed ordinary concrete.
Portland Pozzolana Cement:-
      Portland Pozzolana cement is ordinary Portland cement blended with pozzolanic
materials (power station fly ash, burnt clays, ash from burnt plant material or silicious
earth) either together or separately. Portland clinker is ground with gypsum and
pozzolanic materials which, together they do not have cementing properties in
themselves, combine chemically with Portland cement in the presence of water to
form extra strong cementing material which resists wet cracking, thermal cracking and
has a high degree of cohesion and workability in concrete and mortar. 
Portland Blast Furnace Slag cement:-
      Portland Blast Furnace Slag cement contain up to 70% of finely ground,
granulated blast-furnace slag, a nonmetallic product consisting essentially of silicates
and alumino-silicates of calcium. Slag brings with it the advantage of the energy
invested in the slag making. Grinding slag for cement replacement takes only 25% of
the energy needed to manufacture Portland cement. Using slag cement to replace a
portion of Portland cement in a concrete mixture is a useful method to make concrete
better and more consistent. Portland blast-furnace slag cement has a lighter color,
better concrete workability, easier finish ability, higher compressive, flexural strength,
lower permeability, improved resistance to aggressive chemicals and more consistent
plastic 
 

JHARSUGUDA CEMENT WORKS (JCW)

DIVISION 
LAND:-
The total land acquired for establishment of the factory in the Revenue Circle Arda is
165 acres. 
LOCATION:-
Company’s plant is situated in the district of Jharsuguda, in the Western part of
Orissa. It is on the Howrah-Bombay Rail line situated near Dhutra railway station
which is 10kms from Jharsuguda railway station. It is situated in an area of 165 acres
in the midst of three villages named Arda, Dhutra, and Champapara.
ESTABLISHMENT:-
For the purpose of establishing cement plant the land acquisition process in the
month of May 1992. The construction of the company was completed in March 1993
and commercial production and dispatch in 14th September 1993.
RAW MATERIALS:-
Jharsuguda Cement works produces Portland Pozzolana cement by grinding the
following raw materials like:-
1. Clinker:-
      Clinker which is calcinated from limestone procured from Hirmi cement
Works of UltraTech (Chattisgarh). It is used about 66%.
2. Gypsum:-
      The Gypsum which are used here are of two types; one is Mineral Gypsum
another one is Chemical Gypsum. The Mineral Gypsum is brought from
 Rajasthan and the Chemical Gypsum is brought from Coromondal Fertilizer
Vizag. It is used about 5%.
                3.Fly Ash:-
      It is procured from HINDALCO Hirakud, 50% and rest from OPGC
Banharpali. It is used about 29%. 
MANUFACTURING PROCESS
This clinker, fly ash and gypsum mixed together and grind to cement packed into of
50kgs bag each. As per the demand and requirement of the market, the packed
cements are dispatched to various locations through trucks and rakes. The
transportation works are done by road and railways respectively
MANPOWER STRENGTH:-
Jharsuguda Cement Works is a grinding unit. The Jharsuguda Cement Works has total
man power of 127 permanent and 309 contract employees. It is having a limited
manpower which is presented in a tabular form:- 
 

1. Officers & Supervisors (O & S):                43

2. Wage board employee:
a. Monthly Rated (MR)                      12
b. Daily Rated       (DR)                       72
3. Contract Labour:                                     309
TOTAL=                                                     436

 
 
 
 
 
 
 
 

VISION, MISSION & VALUES OF THE COMPANY 

The company is having its great vision, mission & values for the development of the
company. 
VISION:-
      Jharsuguda Cement Works shall be a Premium brand cement manufacturer. We
shall be innovative with entrepreneurial excellence meeting the expectation of all
stakeholders. 
MISSION:-
      We shall manufacture Portland Pozzolana cement with consistence high quality
adopting good manufacturing practices to meet cent percent requirement of the
customers. 
VALUES:-
      The company is having five great values and these values are found to be
important even from the chairman’s desk. Those are as follows:-
I. INTEGRITY:-
Acting and taking decision in a manner that are fair, honest, following the
highest standard of professionalism and are perceived to be so. Integrity
means not only financial and integrity but in all other forms as are commonly
understood. Key words that connote integrity are truthful, principled, ethical,
transparent, upright & respectful. 
II.COMMITMENT:-
On the foundation of integrity, see commitment as doing whatever it takes to
deliver as promised. Key words for commitment are accountability,
discipline, responsibility, result-orientation, self-confidence & reliability.  
 
III. PASSION:-
Passion is denied as missionary zeal arising out of an emotional engagement
with work, which inspires each one to give his or her best. Relentless pursuit
of goal & objectives with highest level of energy and enthusiasm, that is
voluntary & spontaneous. Key words that connote passion are intensity,
innovation, transformational, fire in the belly and inspirational deep sense of
purpose. 
IV. SEAMLESSNESS:-
Seamlessness means thinking and working together like a team to get a
common across functional silos, hierarchy, levels, across business line &
involvement, openness, global, learning from the best & empowering.  
V.SPEED:-
Speed means satisfy the requirements of internal & external customers in
short time period. Continuously seeking to crash timeliness and choosing the
 light rhythm of optimize organization efficiency. Key words that connote
speed are response time, agile, accelerated, timeliness, nimble, promote,
proactive and decisive. 
 

ADDRESS:-
UltraTech Cement Limited, Jharsuguda Cement Works,
Near Dhutra railway Station, Post: Arda, District: Jharsuguda
Pin Code: 768202
Phone: (06645) 283104/283105
Fax: (06645) 283108 
 
 
 
 
PRODUCTION & DISPATCH:- 
Year Production (In Lakhs MT) Dispatch (In Lakhs MT)
1993-1994 1.43 1.33
1994-1995 3.96 3.95
1995-1996 5.34 5.37
1997-1998 5.54 5.56
1998-1999 7.53 7.56
1999-2000 6.21 6.21
2000-2001 6.34 6.34
2001-2002 7.37 7.37
2002-2003 6.79 6.80
2003-2004 6.10 6.10
2004-2005 5.22 5.25
2005-2006 7.78 7.76
2006-2007 8.82 8.82
2007-2008 8.93 8.87
2008-2009 10.03 10.06
 
 
 
 
 
 
UltraTech’s Cement
Stock Code
Bombay Stock Exchange 532538
National Stock Exchange ULTRACEMCO
Reuters ULTC.BO
Bloomberg UTCEM IS
 
Location Details - UltraTech Cement Location Type Address Registered Office 'B'
Wing, Ahura Centre 2nd Foor Mahakali Caves Road Andheri (East) 
Mumbai - 400093 
Maharashtra - India 
Phone : 66917800 
Fax : 66928109 
Email : sharesutcl@adityabirla.com 
Internet : N.A. Factory/plant Cement Works P.O. Awarpur Cement Project Taluka:
Korpana  
Chandrapur District - 442917 
Maharashtra - India 
Phone : 266323 
Fax : 266339 
Email : jainak@adityabirla.com 
Internet : N.A. Factory/plant Cement Works Bhogasamudram Tadipatri  
Ananthapur District - 515415 
Andhra Pradesh - India 
Phone : 288841/47 
Fax : 288821,288831 
Email : csreddy@adityabirla.com 
Internet : N.A. Factory/plant Cement Works Kovaya Taluka: Rajula  
Amreli - 365541 
Gujarat - India 
Phone : 283034 
Fax : 283036 
Email : kypk@adityabirla.com 
Internet : N.A. Factory/plant Cement Works Post Hirmi  
Raipur - 493195 
Chattisgarh - India 
Phone : 281269 
Fax : 281268 
Email : jkumar@adityabirla.com 
Internet : N.A. Factory/plant Cement Works Chitteri Village  
Arakkonam - 631003 
Tamil Nadu - India 
Phone : 293291 
Fax : 233585 
Email : ramanaraomv@adityabirla.com 
Internet : N.A. Factory/plant Cement Works Near Dhutra Railway Station P.O. Arda  
Jharsuguda District - 768202 
Orissa - India 
Phone : 283104/105 
Fax : 283108/110 
Email : rbsingh@adityabirla.com 
Internet : N.A. Factory/plant West Bengal Cement Works Near EPIP Plot, Muchipara

Durgapur - 713212 
West Bengal - India 
Phone : 2533029 
Fax : 2533358 
Email : rbsingh@adityabirla.com 
Internet : N.A. Factory/plant Magdalla Port  
Surat - 395007 
Gujarat - India 
Phone : 2725175 
Fax : 2726952 
Email : N.A. 
Internet : N.A. Factory/plant Ratnagiri Cement Works MIDC Industrial  
Ratnagiri - 415639 
Maharashtra - India 
Phone : 223679 
Fax : 221807 
Email : N.A. 
Internet : N.A. Factory/plant Jafrabad Cement Works Village Babarkot  
Amreli - 365540 
Gujarat - India 
Phone : 245103 
Fax : 245110 
Email : N.A. 
Internet : N.A. Factory/plant Cement Works Bhogasamudram, Tadipatri Mandal  
Ananthapur District - 515415 
Andhra Pradesh - India 
Phone : 288841/01 
Fax : 288821/59 
Email : csreddy@adityabirla.com 
Internet : N.A. Factory/plant Cement Works P.O. Kovaya, Taluka: Rajula  
Amreli - 365541 
Gujarat - India 
Phone : 283034 
Fax : 283036 
Email : kypk@adityabirla.com 
Internet : N.A. Factory/plant Cement Works Village & Post: Hirmi, Tahsil: Simga  
Raipur - 493195 
Chattisgarh - India 
Phone : 281217/218/221 
Fax : 281572 
Email : jkumar@adityabirla.com 
Internet : N.A. Factory/plant Near Magdalla Port, Dumas Road  
Surat - 395007 
Gujarat - India 
Phone : 2725175/176 
Fax : 2726952 
Email : N.A. 
Internet : N.A. Factory/plant Ratnagiri Cement Works MIDC Industrial Estate,
Zadgaon Block  
Ratnagiri - 415639 
Maharashtra - India 
Phone : 223679 
Fax : 221807 
Email : N.A. 
Internet : N.A. Factory/plant Jafrabad Cement Works P B No.10, Village Babarkot
Taluka:Jafrabad 
Amreli - 365540 
Gujarat - India 
Phone : 245103 
Fax : 245110 
Email : N.A. 
Internet : N.A. Factory/plant West Bengal Cement Works Near EPIP, Muchipara,
Post: Rajbandh 
Durgapur - 713212 
West Bengal - India 
Phone : 2533030 
Fax : 2533358 
Email : rbsingh@adityabirla.com 
Internet : N.A. Factory/plant Arakkonam Cement Works: Chitteri Village District
Vellore  
Arakkonam - 631003 
Tamil Nadu - India 
Phone : 293291, 293111 
Fax : 293810 
Email : ramanaraomv@adityabirla.com 
Internet : N.A. Factory/plant Ginigera Cement Works: Ginigera Grinding Unit
Ginigera Village Koppal Gangavathi Road 
Koppa -  
Karnataka - India 
Phone : 286575/201452 
Fax : 286574 
Email : N.A. 
Internet : N.A. Factory/plant Hirmi Cement Works: Village & Post: Hirmi, Tahsil:
Simga  
Raipur - 493195 
Chattisgarh - India 
Phone : 281217, 281218, 281221 
Fax : 281572 
Email : jkumar@adityabirla.com 
Internet : N.A. Factory/plant Jharsuguda Cement Works: Near Dhutra Railway Station
P.O. Arda  
Jharsuguda District - 768202 
Orissa - India 
Phone : 283104/105 
Fax : 283108/110 
Email : rbsingh@adityabirla.com 
Internet : N.A. Source : Religare Technova

Information Details 
Address for correspondence
UltraTech Cement Limited 
'B' Wing, 2nd Floor  
Ahura Centre,  
Mahakali Caves Road 
Andheri (E) 
Mumbai 400 093 
Tel: 022 - 66917800 
Fax: 022 - 66928109 
Email: sharesutcl@adityabirla.com
 
Registrar and transfer agent
Sharepro Services 
(Unit: UltraTech Cement Limited) 
Satam Estate, 3rd Floor 
 Above Bank of Baroda,  
Chakala, Andheri (E)  
Mumbai 400099 
Email: sharepro@vsnl.com 
Tel: 28215168  
Fax: 28392259
 
 
 
 
 
 
 
 
 

SWOT ANALYSIS 
 
 

Strength Weakness
I. Largest domestic customer strength, I. More Govt. interference,
II. Availability of raw materials in the II. More logistic cost.
domestic country.
Opportunity Threat
I. Focus of new budget on development of I. Substitute like marble for
physical infrastructure, flooring,
II. Housing demand and consumption for II. Foreign entries
increased demand
 
 
 
 
 
 
 
 

MAJOR COMPETITORS 
 ACC CEMENT
  KONARK CEMENT
 LAFARG CEMENT
 AMBUJA CEMENT
 J.K CEMENT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

DATA INTERPRETATION AND

ANALYSIS 
 
 
 
 
 
 
 
 
 
 
 
 
BALANCE SHEET OF ULTRATECH CEMENT LIMITED (JCW) FOR THE YEAR ENDING 31ST
MARCH 2006-07, 2007-08 & 2008-09
Year 2006-07 2007-08 2008-09
Particulars Rupees Rupees Rupees
Assets      
Current Assets   78247514  
 156490107 121255078
Inventories 7328420
159043950 56269146
Sundry debtors 345446 
Cash and bank (8198120)  94352 
75520061
Other current Assets and Advance 80826503 72014233

Total Current Assets 388162440 201456077 249632810

Fixed Assets      
Gross Block 1132533440 1214884226 1224760449

Less: Depreciation  628548446    684538902    750360104 

Net Block 503984994 530345324 474400344
Capital w-i-p   73440193   64887208    95980257
Investment         10000         10000         10000

Total Assets 965597627 796698609 389876485

Liabilities      
Current Liabilities      
318346063 395491828 430146926
Liabilities
    2181353 - -
Provision
Total Current Liabilities 320527416 395491828 430146926
Share holder’s fund      
Share capital - - -
Share capital Suspense - - -

Reserve & Surplus  438297559  632388801  890442350 

Loan Fund’s
     
     226075 5072641 11190303
Secured Loan
- -  -
Unsecured Loan
             
Inter unit balance  206546577  236254661  511756168 
Total Liabilities 965597627 796698609 389876485

PROFIT & LOSS A/C OF ULTRATECH CEMENT LIMITED (JCW)

FOR THE YEAR 2006-07, 2007-08 & 2008-09
Year 2006-07 2007-08 2008-09
Particulars Rupees Rupees Rupees
Income      
Sales 2854472773  3272153735  3766249364 

Other Income       1280473        953520       1129698

Interest & dividend     (99565827) (109849799)          (120155891)
 Operating receipt     29569712    (54768748)    21941484
Stock adjustment changes
Total Income 2785757131 3108488708 3669164655
Expenditure      
Raw material 129094617   125431360   259836496

Manufacturing & Operating expenses 823027720  1032838379  1148324586 

Exercise duty 370998885   495049075 521325223
Purchase of trading goods   62072276     36704200 -
Staff expenses   29746984     36163437   41608587
Sales & administrative expenses 871288094    687833192  735152319 
Interest & brokerage     2802486      4429385     6010083
Depreciation   58428510    57939750   66663309
Less: Self-consumption 0        (288870)      (198298)
Total Expenditure 2347459572 2476099908 2778722305
Profit for the year    438297559    632388801  890442350 
Provision for Taxes 0 0 0
Profit after Tax   438297559   632388801 890442350
 
 
 

FININACIAL ANALYSIS 
PRELUDE:- 
Financial accounting involves recording transaction and preparing report and financial
statement that can be used by management, owners, creditor, government agencies
and other to understand what is happening in the business or nonprofit organization.
“Accounting” is the process of identifying, measuring and communicating economic
information to permit informed judgment and decision by users of the information. 
CONCEPT OF FINANCIAL STATEMENTS
Financial statement are major means employed by firm to present their financial
situation to stock holders creditors and the public financial statement is a collection of
data organized accounting to logical andconsistent accounting procedure. Its purpose
is to convey understanding ofsome financial aspects of a business firm. The and
product of financial accounting is financial statement consisting of the balance sheet,
profit and lossaccounting and statement changes in financial position.Financial
statements are major means employed by a firm topresent their financial situation to
stock holders, creditors and the generalpublic. Accounting reports on the result of
operation and the current status of abusiness enterprise by a financial statement. The
balance sheet and income and statement. Since the balance sheet and income
statement are of limited interest the annual report of the company are supplemented
by a third statement thechange in financial position and by foot notes which explain
and amplify thereported numerical data. 
 
 
 
 
 
TYPES OF FINANCIAL STATEMENTS

(A) The Balance Sheet:-

The balance sheet is called a fundamental accounting report. It provides information
about the financial standing or position of affirm at given instant. The balance sheet
can be visualized, as a snapshot of the financial status of company is a valid for only
one day the reference day. The position of the firm on a preceding day is bound to be
different.“The balance sheet of a company indicates to management the financial
status of a company as on a given moment. From an analyst point of view a balance
sheet is written representation of the resources and liabilities of an individual
partnership firm an association of a corporation.”
The contents of balance sheet can be divided into three divisions
*Assets: -
Assets are valuable resources owned by a business, which are acquired at a
measurable money cost these are economic resources of a firm which provide
economic benefits to the company.
Liabilities:-
Liabilities are claim of creditors against the enterprises arising out of past activities
that are to be satisfied by the disbursement of utilization ofcorporate resources. They
are economic obligation of the firm.
*Owner’s equity:-
The owner’s equity is the owner’s current investment in the assets of company. The
entire system of recording business transaction is based on accounting equation. The
accounting equation is an accounting formula expressing equivalence of the two
expressions of assets and liabilities. 
 
 
ACCOUNTING EQUATION
(B) The Income Statement:-
The balance sheet, as discussed above, is considered a very significant statement from
the view point of bankers, and other lenders, because it indicates the firm’s financial
position and strength, as measured by its recourses and obligations, however, editors
and financial analysis have recently started paying more attention to the firm’s
capacity as a measure of its financial strength. Its income statement revels the firm’s
capacity as a measure of its financial strength. Its income statement reveals the
earning potential of the firm.
ASSETS = LIABILITIES + OWNER’S EQUITY
OR
OWNERS EQUITY = ASSETS - LIBILITIES
OR
LIBILITIES = ASSETS - OWNER’S EQUITY
An income statement is a financial statement summarizing the result of company’s
income (profit) making activities for a specific time period. It summarizes revenues
and expenses in a manner that discloses whether a company’s activates in a particular
fiscal period have resulted in profit or loss. The income statement is a scoreboard of
the firm’s performance during particular period of time. “The profit and loss account
is the condensed and classified record of the gains losses posing change in the owner’s
interest in the business for a period of time.”The income statement or the profit and
loss account presents the summary of revenues, expenses and net income (or net loss)
of a firm for a period of time. Thus, it serves as measure of the firm’s profit ability.
It’s systematic array of the data of the revenues, revenues deduction (expenses,
revenues, revenue deductions, expenses, losses, taxes etc.) Net income and
distribution or assignment of the net income to creditors and property investors of a
particular period.
(C)STATEMENT OF CHANGE IN FINANCIAL POSITION
Until 1960, the income statement and the balance sheet constituted the major financial
statement. However, management traditionally made use of a wide variety of
statement and reports in apprising internal company performance. One popular report
for management’s internal use was called the statement of changes in final position.
From such a report, management could extract valuable information about where
working CapitaLand cash come from and how they were used. If these past events
could be projected in future, management would have a useful tool for budgeting.
Today, the statement of changes of financial position represents third financial
position represents a third financial statement.
PARTIES INTERESTED
According to the American institute of certified public accountants, financial
statement reflects, a combination a recorded facts, accounting convention and
personal judgments and the judgments and conventions applied, affect
themmaterially.Following are interested in financial statement:-
 Credit, suppliers and others are having business with the company.
 Debenture holders.
 Credit institutions and banks.
 Potential lenders and investors.
 Trade unions and employees.
 Important customers wishing to make a long standing with the company.
 Economist and analyst.
 Members of parliament, the public committee in respect in government
companies.
   Taxation authorities.
 Other departments dealing with the industry in which the company engaged
cooperative.
 The company law board.
FINANCIAL APPRAISAL
A company’s financial statement are intended to summarize the results of its operation
and its ending financial condition. The information in the statement is studied and
related to other information by external users for several reasons. Current
shareholders, for example, are concerned about there invested income, as well as the
company’s overall profitability and stability. Some potential investors are invested in
“solid “companies that are companies whose financial statement indicate stable
earnings and dividends with little growth in operations. Other prefers companies
whose financial statement indicate rend for rapid growth in a company’s short run
solvency, its ability to pay current obligation as they become due. Long-term creditors
are concerned about the safety of their interest; income and company’s ability to
continue earning cash flow to meet its financial commitments and these are only few
of the users, and uses of financial statements. But the numerical data in the financial
statement are quit calm. They cannot speak. Analytical data are not ending in
themselves, but they are meant to an end. Financial appraisal is an attempt to
determine the significance, and meaning of the financial statement data so that
forecast may be made of the prospects for future earnings, ability to pay interest, debt
maturities both current as well as long term profitability of a sound dividend policy.
Financial appraisal involves the assessment of firm’s past, present and anticipated
future financial condition. Financial appraisal is a scientific evaluation if the
profitability and financial strength of a business concern. In fact financial appraisal
and analysis of financial statement have nearly the same meaning. Financial statement
analysis is used for the purpose of financial appraisal. Financial appraisal is the
process of making a scientific proper, critical and comparative evaluation of the
profitability and financial health of given concern through the application of financial
statement analysis. Financial statement analysis is a preliminary step towards the
evaluation of result dawn by the analysis or management accountant. Appraisal or
evaluation of such results is made thereafter. Financial appraisal begins where
financial analysis ends, and financial analysis starts where the summarization of
financial data in the form of profit and loss account and balance sheet ends, in the
words of Kenney and mecmillan,“financial statement analysis attempts to unveil the
meaning and significance of the items composed in profit and loss account and
balance sheet so as to assist the
management in the formation of sound operating financial policies. The appraisal or
analysis of financial statement spotlights the significant facts and relationship
concerning managerial performance, corporate efficiency, financial strength or
weakness and credit worthiness, that would have otherwise been buries in the maze of
details.”The technique of financial appraisals frequently applied to the study of
accounting data with a view to determining continuity or discontinuity of the
operating policies and investment value of business. Everybody interested in the
affairs of the company is interested in finding answer to the following searching
question:-
A. Does the company earn adequate profit?
B. Does the company process enough funds to meet its obligation as and when
they mature?
C. Is investment in the company safe?
Appraisal of financial statement alone can answer such queries. Its true that statement
analysis merely reveals what has taken place in the past, but past events given some
indication of what may be expected in future unless some drastic changes take place
in business it. Will continue to move in the same direction in the past.
Roy .A. Faulkner is very correct to say “if a train is moving forward at a known rate
of speed, it is reasonable to assume that it will continue to move at approximately the
same rate unless some obstacle interrupts its progress abruptly or the motive power is
increased or decreased.” Similarly it is a reasonable to assume that unless some
realistic change take places in the places in the business, it will continue to move in
the same general direction as indicated by its comparative trends. 
 
 
 
NEED OF FINANCIAL APPRAISAL
The need of financial appraisal varies accounting to type of users. For management
are servers as mean s of “self evaluation as it is like a report of its managerial skill and
competence a banker can judge the liquidity position a creditor can plan buying and
selling of hares of concern on the basis of safety of principal and its capital
appearances as wanted by the past record of earning. A debenture holder of a concern
can ascertain whether income is generates sufficient margin to pay the interest /
answers to different question are provided by financial appraisal. By using this
technique an economist can study the extent of “concentration of economic power”
and pitfalls in the financial policies pursued, while a planner can ascertain if the patter
of investment reveals the company’s position in relation to labor and its welfare,
legislation concerning licensing desirable in the socio economic interested may be
based on statement analysis. 
 
 
 
 
 
 
 
 
 
 
 
 
 

STATEMENT SHOWING CHANGES IN WORKING CAPITAL 

Items 2006-07 2007-08 % Inc/dec 2008-09 % Inc/dec
Current Assets          
Inventories 156490107   78247514   -50.00 121255078  54.96
Sundry Debtors 159043950   47328420   -70.24   56269146 18.90
Cash & bank    (8198120)       360082 -104.39         94352 -73.80
Other current assets          
Loan & Advances   80826503   75520061    -6.57   72014233 -4.64
Gross working capital 388162440 201456077 -48.10 249632809 23.91
Current Liabilities          
Liabilities 318346063 395491828   24.23 430146926   8.76
Provision     100    
Net Working Capital   69816377 (194035751) -377.92 (180514117) 6.97
Interpretation:- 
In the FY 2007-08, the inventories are decreased by 50% and in 2007-08 periods it
was increased by 54.96% as more investments are done on inventories to increase
production capacity.
Debtors are less in the year 2007-08 than 2006-07 because in 2007-08 the sales are
increased by 14.63% and in this 2008-09 the debtors are more and the sales are also
increased because the company allowed more sales in credit to capture the market.
The company keeps very less amount in the bank only because of that we can see the
bank amount is very low amount. 
In this year the production capacity is stable that’s why the company reduced the loan
by 5% as compared to year 2007-08 
 
 

CONCEPTS OF WORKING CAPITAL

Gross working capital:-
Gross working capital refers to the firm’s investment in current assets are the assets
which can be converted into cash within an accounting year and include cash , short-
term securities, debtors,(accounts receivable or book debts) bills receivable and
stock(inventory).
Working Capital:-
It’s refers to the difference between current assets and current liabilities. Current
liabilities are those claims of outsiders which are expected to mature for payments
within an accounting year and include creditors (account payable) , bills payable ,and
outstanding expenses
Net Working Capital can be positive or negative. A positive net working capital will
arise when current assets exceed current liabilities .a negative net working capital
occurs when current liabilities are in excess of current assets.
PERMANENT WORKING CAPITAL:-
We know that the need of current assets arises because of the operating cycle. The
operating cycle is a continuous process and, there for, the need for current assets is
felt constantly. But the magnitude of current assets needed is not always the same; it
increases and decreases over time. However there is always a minimum level of
current assets which is continuously required by a firm to carry on its business
operations. Permanent or fixed, working capital is the minimum level of current
assets. it is permanent in the same way as the firm’s fixed assets are. Depending upon
the changes in production and sales, the need for working capital, over and above
permanent working capital, will fluctuate. For example extra inventory of finished
goods will have to be minted to support the peak period of sale, and investment in
debtors (receivable) may also increase during such periods. On the other hand,
investment in raw material, work in process and finished goods will fall if the market
is slack. 
VARIABLE OR FLUCTUATING WORKING CAPITAL:-
Variable or fluctuating working capital the extra working capital needed to support the
changing production and sales activities of the firm. Both kinds of working capital –
permanent orAmount of workingcapital (Rs) Temporary and Fluctuating Time
fluctuating (temporary)-are necessary-to facilitate production and sales through the
operating cycle. But the firm to meet liquidity requirements that will last only
temporary working capital. In figure illustrates differences between permanent and
temporary working capital. It is shown that permanent working capital is stable over
time, while temporary working capital is fluctuating – sometimes increasing and
sometimes decreasing. However, the permanent working capital need not be
horizontal if the firm’s requirement for permanent capital is increasing (or decreasing)
over a period
FOCUSING ON MANAGEMENT OF CURRENT ASSETS
The gross working capital concept focuses attention on two aspects of current assets
management:
1. How to optimize investment in current assets?
2. How should current assets be financed 
 
 
 
 
 
 
 
 
 
 
OPERATING AND CASH CONVERSION CYCLE
The need for working capital to run the day-to-day business activities cannot be
overemphasized. We will hardily find a business firm which does not require any
amount of working capital. Indeed, firms differ in their requirement of the
workingcapital.We know that a firm should aim at maximizing the wealth of its
shareholders. In its Endeavour to do so, a firm should earn sufficient return from its
operations. Earninga steady amount of profit requires successful sells activities. The
firm has to investenough funds in current assets for generating sales. Currents assets
are neededbecause sales do not convert into cash instantaneously. There is always an
operatingcycle involved in the conversion of sales into case.There is a difference
between current and fixed assets in terms of theirliquidity. A firm requires many years
to recover the initial investment in fixedassets such as plant and machinery or land
and building. On the contrary, investment in current assets such as inventories and
debtors [accountreceivable] is realized during the firm’s operating cycle that is usually
less than a year.
What is an operating cycle?
Operating cycle is the time duration required to convert sales, after theconversion of
resources into inventories, into cash. The operating cycle of a manufacturing company
involve three phases:
· Acquisition of resources such as raw material, labor, power and fuel etc.
· Manufacture of the product which includes conversion of raw materialinto work-in-
progress into finished goods.
· Sales of the products either for cash or on credit. Credit sales createaccount
receivable for collection.These phases affect cash flows, which most of the time, are
neithersynchronized because cash outflows usually occur before cash inflows.
Cashinflows are not certain because sales and collections which give rise to
cashinflows are difficult to forecast accurately. Cash outflows, on the other hand, are
relatively certain. The firm is, therefore, required to invest in current assets for a
smooth, uninterrupted functioning. It needs to maintain liquidity topurchase raw
materials and pay expenses such as wages and salaries; othermanufacturing,
administrative and selling expenses and taxes are there ishardly a matching between
cash inflows and outflow. Cash is also held to meetto any future exigencies. Stocks of
raw material and work –in- process are keptto ensure smooth production and to guard
against non-availability of rawmaterials of other components. The firms hold stock of
finished goods to meetthe demand of customers on continuous basis and sudden
demand from somecustomers. Debtors (Accounts Receivable) are created because
goods are soldon credit for marketing and competitive reasons.Purchase Payment
Credit Sale Collection 
RMCP+WIPCP+FGCP
Inventory convention period                                     Receivable conversion price
                     
                                         Gross operation cycle                               
 
Payable Net operating cycle                            Operating Cycle of manufacturing firm 
Thus, a firm makes adequate investment in inventories, and debtors, for smooth,
uninterrupted production and sale. How is the length of operating cycle determined?
The length operating cycle of a manufacturing firm is the sum of (i) inventory
conversion period (ICP) and (ii) debtors (Receivable) conversion period (DCP).The
inventory conversion period is the total time needed for producing and selling the
product. Typically, it includes: (a) raw material conversion period (rmcp) ,(b)work-in-
process conversion period (WIPCP), and (c) finished goods conversion period
(FGCP). The debtors’ conversion period is the time required to collect the outstanding
amount from the customers. The total of inventory conversion period and debtors
conversion period is referred to as gross operating cycle (GOC).In practice, a firm
may acquire resources ( such as raw material) on credit and temporarily postpone
payment of certain expenses. Payables, which the firm can defer, are spontaneous
sources of capital to finance investment in current assets,. The creditors (Payables)
deferral period  
(CDP) is the length of time the firm is able to defer payments on various resource
purchases. The difference between (gross) operating cycle and payables deferral
period is net operating cycle (NOC). if depreciation is excluded from expenses in the
computation of operating cycle, the net operating cycle also represents the cash
conversion cycle(CCC).it is net time interval between cash collections sale of the
product and cash payments fore resources acquired by the firm. It also represents the
time interval over which additional funds, called working capital, should be obtained
in order to carry out firm’s operations. The firm has to negotiate working capital from
sources such as commercial banks. The negotiated sources of working capital
financing are called non-spontaneous sources. If net the consideration of the level of
investment in current assets should avoid two danger points-excessive or inadequate
investments in current assets. Investment in current assets should be just adequate to
the needs of the business firm. Excessive investment in current assets should be
avoided because it impairs the firm’s profitability, as idle investment earns nothing.
On the other hand, inadequate amount of working capital can threaten solvency of the
firms because of its inability to meet its current obligations. It should be released that
the working capital needs of the firm may be fluctuating with changing business
activity. This may cause excess or shortage of working capital frequently. The
management should be prompt to initiate an action and correct imbalances another
aspect of the gross working capital point to the need of arranging funds to finance
current assets. Whenever a need for working capital funds arises due to the increasing
level of business activity or for any other reason. Financing arrangement should be
made quickly. Similarly, if suddenly, some surplus funds arise they should not be
allowed to remain idle, but should be invested in short- term securities. Thus, the
financial manager should have knowledge of the sources of working capital funds as
well as investment avenues where idle funds may be temporarily invested. 
 
 
 
FOCUSING ON LIQUIDITY MANAGEMEN
Net working capital is a qualitative concept. It indicates the liquidity position of the
firm and suggests the extent to which working capital needs may be financed by
permanent sources of funds. Current assets should be sufficiently in excess of current
liabilities to constitute margin or buffer for maturing obligations within the ordinary
operating cycle of business. In order to protect their interests, short term creditors
always like a company to maintain current assets at a higher level than current
liabilities. It is a conventional rule to maintain the level of current assets twice the
level current liabilities. However, the quality of current assets should be considered in
determining the level of current assets vis – a – vis current liabilities. A weak
Liquidity position poses a threat to the solvency of the company and makes it unsafe
and unsound. A negative working capital means a negative liquidity, and may prove
to be harmful for the company’s reputation excessive liquidity is also bad. it may be
due to mismanagement of current assets. There for, prompt and timely action should
be taken by management to improve and correct the imbalances in the liquidity
position of the firm. For every firm, there is a minimum amount of net working capital
which is permanent. Therefore, apportion of the working capital should be financed
with the permanent sources of funds such as equity share capital, debentures, long
term debt, performance share capital or retained earnings. Management must,
therefore, decide the extent to which current assets should be financed with equity
capital and/or borrowed capital. In summary, it may be emphasized that both gross
and net concepts of working capital are equally important for the efficient
management of working capital. There is no precise way to determine the exact
amount of gross or net working capital for any firm. The data and problems of each
company should be analyzed to determine the amount of working capital. There are
no specific rules to how current assets should be financed. It is not feasible in practice
to finance current assets by short – term sources only. Keeping in view the constraints
of the individual company, a judicious mix of long and short term finances should be
invested in current assets. Since current assets involve cost of funds, they should be
put to productive use. 
 
 
 
 
 
 
 

ANALYSIS OF WORKING
CAPITAL  
 
 
 
  
 
 
 
 
 
 
 

ANALYSIS OF WORKING CAPITAL 

Analysis of working capital is an essential part of financial management. If there is an
adequate amount of working capital and it is utilized in the right manner, it is a great
achievement for the business. The excess of working capital causes financial
stringency and brings the business to a standstill.
Realizing the impotence of working capital in financial management the analysis of
working capital becomes an essential phenomenon. It facilitates the adequacy and
management of working capital. The management of working capital provides a
careful inquiry into its components so as to control the working capital and to
conserve it properly. It helps in determining the optimum level of working capital in
the firm. The process of measurement and analysis of working capital is performed on
the basis of financial statements of the business enterprise for past few years. In the
present study the analysis of working capital of ultra tech cement ltd. has been made
by two techniques vis., trend analysis and ratio analysis.
WORKING CAPITAL TREND ANALYSIS
The working capital trend analysis represents picture of variation in current assets,
current liabilities and working capital over period of time. Such an analysis enables us
to study upward and downward trend in current liabilities and its effect on the
working capital position. The trend analysis is a tool of financial appraisal where the
changes in the factors are compared with the base year assuming the base year as
100.In the present study a statement – showing trend of working capital as well as its
structure has been made. It is it scientific and important study because each
component of working capital has got the relationship of causes and effects. 
 
 
 
 
 

Liquidity Ratio:-
Current Ratio:-
Current ratio is one of the important ratios used in testing liquidity of a
Concerned firm. This is a good measure of the ability of company to maintain
solvency over a short run. This is computed by dividing the total current assets by the
total current liabilities and is expressed as:
Current Ratio = Current Assets
                                Current Liabilities
The current assets of a firm represent those assets, which can be in the ordinary course
of business, converted into cash within one accounting year. The current liabilities are
defines as obligation maturing within a short period (usually one accounting year).
Excess of current assets over current liabilities is known as working capital and since
these two (current assets and current liabilities) are used incurrent ratio therefore, this
ratio is also known as working capital ratio. With the help of this ratio the analyst can
review the extent to which the company can covert such liabilities with current assets.
The current ratio gives the analyst a general picture of the adequacy of the working
capital of accompany and ability of the company to meet its day-to-day payment
obligation. “It likewise measures the margin of safety provided for paying current
debts in the event of a reduction in the values of current assets.”The current ratio is
very useful as a measure of short terms debt prying ability but it is tricky to interpret
this ratio. Experts are of the view that the value of current assets should be at least
double the amount if current liabilities. Walker and Bough have the same view when
they ay “a good current ratio may mean a good umbrella for creditors against the rainy
days.”But to the management it reflects bad financial planning or presence of idle
assets or overcapitalization”
IDLE CURRENT RATIO: 2:1
 If this ratio is higher than standards than it is assumed
 Very good short –term liquidity/solvency.
 Excess stocks, bad debts and idle cash.
 Under trading If this ratio is lower than standards than it is assumed
 Unsatisfactory short-term liquidity.
 Shortage of stocks, less credit sales, shortage of cash.
 
 
 
 
Year 2006-07 2007-08 2008-09
Ratio 1.22 0.51 0.58
 
 
 
 

 
Interpretation:- 
      According to banker’s rule of thumb 2:1 is the ideal ratio for current ratio
but as per the statistics of the last 3 years, the current ratio is good in 2006-07
and quite satisfactory in 2008-09. However the company is able to manage
with the above current ratio, availing more credit from the vendor. If we see
the nature of the business it is a grinding unit, so the investment is done more
for the fixed assets. 
 
 

Quick Ratio:- 
The solvency of a company is batter indicated by quick ratio. The fundamental
this Ratio is to enable the financial management of company to ascertain that
would happen
If current creditors press for immediate payment and either not Possible to
push up the sales of closing or it id sold, a heavy loss is likely to be suffered.
This problem arises because closing stock is two steps away from the cash and
their price more or less uncertain according to market demand. The term quick
assets include all current assets except inventories and prepaid expenses. It
shows the relationship of quick assets and current liabilities. The Ratio is
calculated as following 
Quick Ratio = Current Assets – Inventor
                             Current Liabilities   
It is indicator of a company's short-term liquidity. The quick ratio measures a
company’s ability to meet its short-term obligations with its most liquid assets. The
higher the quick ratio, the better is the position of the company. It is known as the
"acid-test ratio" or the "quick assets ratio". 
 
IDLE QUICK RATIO 1:1 
 
 
 
 
 
 
 
 
 
 
 
 
Year 2006-07 2007-08 2008-09
Ratio 0.72 0.31 0.30
 
 
   

   Interpretation:- 
         As per the Banker’s rule of thumb 1:1 ratio is satisfactory for the quick ratio.
Here the inventories are not included as this ratio requires the liquid assets which are
easily convertible to cash within a short period of time. The average collection period
also affect this ratio as debts are the liquid assets. Again the firm’s transactions are
mainly done in credit and the credit period is a bit longer. So the quick ratio doesn’t
affect the firm. 
 
 

   Inventory Turn-over Ratio

Every firm has to maintain a certain level of inventory of finished goods so as to be
able to meet the requirements of the business. But the level of inventory should
neither to be high not to be low. It to high inventory means higher carrying cost and
higher risk of stocks becoming obsolete whereas to low inventory may mean the loss
of business opportunities. it is express in number of time . Stock turnover ratio or
inventory turnover ratio indicates the no. of times the stock has been turned over
during the period and evaluates the efficiency with which a firm a able to manage its
inventory. This ratio indicates whether investment in stock is within proper limit or
HIGHER RATIO INDICATES:-
 Stock is sold out fast.
 Same volume of sales from less stock or more sales from
 Same stock
 Too high ratio shows stock outs or over trading.
 Less working capital requirement.
 LOWER RATIO REVEALS:-
 Stock a sold out at a slow speed.
 Same volume of sale for more stock or less sale from same stock.
  More working capital requirement.
 Too low ratio show obsolete stock or under trading.
                                                Inventory turn-over ratio = Sales
                             Inventory
Inventory turnover ratio measures the velocity of conversion of stock in to sales.
Usually a high inventory turnover / stock velocity indicates efficient management of
inventory because more frequently the stock are sold, the lesser amount of money is
required to finance the inventory. Low inventory turnover ratio indicates inefficient
management of inventory. in low inventory turnover implies over investment in
inventories, the business, poor quality of goods, stock accumulation, accumulation of
absolute and slow moving good and low profit as compared to total investment the
inventory turnover ratio is also an index profitability where a high ratio signifies more
profit ‘a low ratio signifies low profit some time a high inventories. 
 
Year 2006-07 2007-08 2008-09
Ratio 18.24 41.82 31.06
 
   

 
   Interpretation:- 
         Activity ratio indicates the speed with which assets are converted to sales.
Inventory turn-over ratio indicates the rate at which funds invested in inventories are
converted into sales. The inventory turn-over ratio of the company is more in 2007-08
than 2008-09. The inventories are managed better in 2007-08 than the previous years
and 2008-09 as higher inventory turn-over ratio is considered to be better. Higher the
inventory turn-over ratio, lesser amount is required to be invested in inventories. 
 
 
 
 

   Days of Inventory Holding:- 

   Days of inventory holding = Inventory x 360
             Sales 
Year 2006-07 2007-08 2008-09
Ratio 19 9 12
 
      
 

Interpretation:-
      The days of inventory holding shows the efficiency of the movement of the
inventories into sales. Here we can see 2007-08 is a great year for the company as per
inventory holding. The inventories are converted into sales quicker than the previous
years. 
 

Raw Material Inventory Turn-Over Ratio:-

                        Raw Material Turn-Over Ratio = Materials Consumed

                                Avg. Raw Material

Inventory 
Year 2006-07 2007-08 2008-09
Ratio 34.96 16.07 22.53
 

Interpretation:-
      This ratio tells about the time period to convert raw materials into work-in-
progress. The figure shows that 2007-08 has a lower level of raw material inventory
turn-over. In manufacturing industries raw materials must be consumed fast and as
per that point of view 2007-08 is better than 2006-07 and 2008-09.
 

Debtors Turn-Over Ratio:- 

Debtors Turn-Over Ratio = Sales
          Debtors 
Year 2006-07 2007-08 2008-09
Ratio 17.94 69.14 66.93
 

Interpretation:-
      This ratio shows the liquidity of the debtors, how promptly
they are paying to the firm. Higher value is considered to be
better for this ratio, so in 2007-08 the debtors are more liquid
and this helps the firm to maintain a healthy liquid asset.
                
Average Collection Period:-
                             Average Collection Period = Debtors x 365
          Sales 
Year 2006-07 2007-08 2008-09
Ratio 20 5 5
 

Interpretation:-
The average collection period shows promptness of the debtors
in making payments. As per the statics 2007-08 and 2008-09 are
the best among the 3 years for the company in getting the
payments. The chances of bad debts and losses are more in
2006-07. 
 
 

Creditor Turn-Over Ratio:- 

Creditor Turn-Over Ratio = Purchase
         Creditors 
Year 2006-07 2007-08 2008-09
Ratio 7.32 10.11 16.38
 
 

Interpretation:-The ratio indicates the velocity with which the

creditors are turned over in relation to purchases. Better the
value better it is or otherwise lower the value less favorable the
result. 
 

Average Payment Period:- 

Average Payment Period = Creditor x 365
 Purchase 
Year 2006-07 2007-08 2008-09
Ratio 32 36 22
 
 

Interpretation:- 
      It shows the average number of days taken by the firm to pay
to its creditors. Higher the value implies greater credit period
enjoyed by the firm. Lower value is considered to be better as it
keeps a healthy liquidity position.  
 
 

Working Capital Turn-Over Ratio:- 

A measurement comparing the depletion of working capital to the generation of Sales
over a given period. This provides some useful information as to how
Effectively a company is using its working capital to generate sales. 
Working Capital Turn-Over Ratio = Cost of sales
           Net Working Capital 
 
A company uses working capital (current assets - current liabilities) to fund operations
and purchase inventory. These operations and inventory are then converted into sales
revenue for the company. The working capital turnover ratio is used to analyze the
relationship between the money used to fund operations and the sales generated from
these operations. In a general sense, the higher the working capital turnover, the better
because it means that the company is generating a lot of sales compared to the money
it uses to fund the sales. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year 2006-07 2007-08 2008-09
Ratio 14 -6 -7.80
 

Interpretation:- 
      It shows the effective utilization of the net working capital. If
we see the statistics of the company, the working capital turn
over ratio is negative for the company, in the financial year
2007-08 and 2008-09. This is because current liabilities are
more than current assets in both years.  
 
 
 
 
 
 
 
 
Net Profit Margin:- 
Net Profit Margin = PAT x 100
                         Sales 
Year 2006-07 2007-08 2008-09
Ratio 15.35 19.33 23.64
 
 

 
Interpretation:- 
      This ratio indicates the efficiency of the management in manufacturing, selling,
administrative and other activities of the firm. This ratio measures the overall ability
of the company to turn each rupee sales in profit. In 2006-07 when the company
gained 15.35% for each one rupee invested, in the next 2 years it has increased to
19.33% and 23.64% respectively. 
 
Gross Profit Ratio:- 
Gross Profit Ratio = (Sales – COGS) x 100
        Sales 
Year 2006-07 2007-08 2008-09
Ratio 65.51 61.81 72.80
 
 

Interpretation:- 
      This ratio indicates the efficiency with which a company
produces its products. It is good in 2008-09 as compare to the
previous years. In previous years the manufacturing cost is
higher and excessive competition might be one of the reasons. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

FINDINGS  
 
 
 
 
 
 
  
 
 
 
 
 
 
 

FINDINGS 
 Current assets are not sufficient to meet the current
liabilities.
 

 The liquid assets are also not sufficient to fund the

liabilities.
 

 The company holds the inventory for around 30-35 days in

an average for last 3 years. It is not same for all the years
as the production capacity is changed every year.
 

 The company is getting material on credit for a long time.

 

 The average collection period is manageable and the

company pays immediately to the suppliers.
 

 Sales are increasing over the years.

 

 Liabilities are increasing year-on-year basis and it is one of

the reasons for the unhealthy Working Capital Position.
 
                               
 
 
 
 
 
 

SUGGESTIONS  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

SUGGESTIONS 
 The company should improve the cash position to meet the
current liabilities immediately, when required.
 

 The quick assets condition has to be improved.

 

 As a manufacturing industry the company should show its

endeavor towards decreasing the net operating cycle.
 

 The company has to make the debtors prompt in making

payments.
 

 Cash flow and fund flow statements should be prepared for

the benefit of the company.
 

 Even the cash budget to know the cash requirement for

each month.
 

 The company should invest in short term assets to meet the

current liabilities.
 

 The non-moving stocks have to be removed continuously.

 
 
 
 
 
 
 
 
 
 
 
 
 

CONCLUSION  
 
 
 
 
 
 
 
 
 
 

CONCLUSION 
 

The plant being a small grinding plant is immediately

contributing to the profitability of the company. After taken over
by the Aditya Birla group the firm has increased the production
capacity. Its main advantage is the location for production and
distribution of the product. 
      The company is located near to HINDALCO, another Aditya
Birla Company of Aluminum, which is 70kms away from
Dhutra. The Fly Ash required for the production of cement,
brought from HINDALCO. The company pays only the
transportation charges. As per the Working capital Analysis we
saw the firm is retaining a small amount of current assets, which
is good for profitability but not for the health of the company.
Being a small grinding unit it depends upon the Head Office and
fully fledged plant. It is advantageous for the company as it gets
raw materials and money on credit when required. 
      There is no doubt about the current assets management of the
unit, it is managed aggressively. The working capital
management is not that much good as concerned to the
company. It is all due to the 24x7 support of the head office in
every respect. 
      The unit along with the Hirmi Cement Works and Durgapur
Cement Works is the cheapest producer and top in the
profitability concern. 
 
 
 
 
 
 
 
 
 
 

BIBLIOGRAPHY  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
BIBLIOGRAPHY 
 Pandey, I.M, Financial management, 1978, Vikas Publishing House Pvt. Ltd.
New Delhi
 Sharma, R.K. & Gupta, Shashi K, Management Accounting, 1996 kalyani
Publisher,
 Chandra Prasanna, Financial Management, Golgotha Publishing Co. New
Delhi,
 Jain, S.P, & Narang, K.L, Advance cost & Management Accounting, Kalyani
Publisher, Ludhiana,
 MY Khan, P.K.Jain (1981), Financial Management,5th edition, Publisher
Mc graw hill companies
 Horne Wwachonicz, J.R.Bhaduri (2005), Fundamentals and Financial
management, 12th edition, Pearson publisher
 www.adityabirla.com
 www.ultratech.com
Search engine
 www.google.com
 Annual Accounts from 2006-07 to 2008-09
 
 
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