Acknowledgement

We are interested all our caliber, attention & knowledge in preparing this project report & while
preparing this report we had got to know many things about the industries & their problems, growth,
structure, development etc.

With the presentation of this report we express our gratitude to thanks Professor Dr. Liaqat Ali &
School Of Management Studies, Punjabi University, Patiala for the encouragement & support
throughout the preparation of report.

We are very glad to have such co-operation & friendly professors who helped us every time without
hesitating & gave us the best valuable knowledge. Thank you sir for making us know you will be there
when we need somebody.
 Table of Contents

Chapter No Topic Page No

Chapter-1 Introduction to the company 6
Chapter-2 Comparative balance sheet 16
Comparative Profit & loss&
Chapter-3 Analysis of Profit & 19
Loss
Chapter-4 Common size statement 22
Chapter-5 Trend Analysis 28
Chapter-6 Analysis of Cash flow 35
Chapter-7 Ratio Analysis 37
Chapter-8 Recommendation & suggestion 66
Contemporary issue in
Chapter-9 accounting of the 68
Company
Chapter-10 Bibliography 76
Chapter-11 Annexure 78
 1. INTRODUCTION

Grasim Industries Limited is an Indian manufacturing company based in Mumbai,

Maharashtra. It was started in 1948 as a textile manufacturer. Since then Grasim has
diversified into Viscose Staple Fiber (VSF), cement, sponge iron, chemicals and
Diversified Financial Services (NBFC, Asset Management and Life Insurance).

The company is a subsidiary of Aditya Birla Group, which operates over 40 companies in
12 countries on four continents. Grasim is the world's largest producer of viscose rayon
fiber with about 24% market share. Textile and related products contributes to 15% of the
group turnover.

1.1 History of Company

Grasim Industries Limited was incorporated in 1948; Grasim is the largest exporter of
Viscose Rayon Fiber in the country, with exports to over 50 countries. Grasim is
headquartered in Nagda, Madhya Pradesh and also has a plant at Kharach (Kosamba,
Gujarat) and Harihar, Davangere in the state of Karnataka

Indo-Thai Synthetics Company Ltd was incorporated in 1969 in Thailand, started

operations in 1970, this was Aditya Birla Group's first foray into international venture.
Aditya Birla Group incorporated P.T. Elegant Textiles in 1973 in Indonesia. Thai Rayon
incorporated in 1974, this was the second company in Thailand, operating in Viscose
Rayon Staple Fiber. Century Textiles Co. Ltd. is taken over by Aditya Birla Group in
1974; this company is a weaving and dyeing plant manufacturing and exporting variety of
synthetic fabrics. PT Sunrise Bumi Textiles incorporated in 1979, it produces yarn
exported over 30 countries in 6 continents. P.T Indo Bharat Rayon incorporated in 1980
produces Viscose Staple Fiber in Indonesia. Thai Polyphosphates and Chemicals was
started in 1984 in Thailand to produce Sodium Phosphates, and has merged with Thai
Epoxy and Allied Products Company Limited (1992), Thai Sulphites and Chemicals
Company Limited (1995) to form Aditya Birla Chemicals Ltd. This company supplies to
sectors such as food, textiles, electrical and electronics, composites, leather, plastics and
automobiles. PT Indo Liberty Textiles was incorporated in 1995 to manufacture synthetic
spun yarn.

In late 1990s and later, the focus was the textile business following the end of Multi-Fiber
Arrangement (MFA).

AV Cell Inc., a joint venture between Aditya Birla Group and Tembec, Canada,
established operations in 1998 to produce softwood and hardwood pulp for the purpose of
internal consumption among different units of the Group.

Together, Grasim Industries Ltd. and Tembec, Canada acquired AV Nackawic Inc.,
which produces dissolving pulp. Grasim Industries Ltd. supplies Viscose Staple Fiber
(VSP). The Aditya Birla Group's VSF manufacturing plants are in Thailand, Indonesia,
India and China.

The Group's VSF business operates through its three companies – Grasim Industries in
India, Thai Rayon Corporation in Thailand and Indo Bharat Rayon in Indonesia, which
also oversees its Chinese operations at Birla Jingwei Fibres, China.

In 2003, its Chemical Division was awarded the "Best of all" Rajiv Gandhi National
Quality Award.

Grasim sponsored Grasim Mr. India event from 1994 to 2012 that sent the winner to
compete in international events like Mister International and Mister World.
 Standalone Statement of Profit and Loss Account
PARTICULARS 31.03.2018 31.12.2017 31.03.2016 31.03.2015

INCOME
Revenue from Operations
Other Income
Total Income ( I )
EXPENSES
a) Cost of materials consumed

b) Purchase of stock-in-trade

c) Changes in inventories of finished goods, Stock-in-trade and

work-in-progress
d) Excise Duty
e) Employee benefits expense
f) Finance costs
g) Depreciation and amortisation expense
h) Power and Fuel
i) Freight and Handling Charges
j) Other expenses
Total expenses ( II )
Profit before Exceptional Items and Tax
Exceptional Items
Profit before Tax
Tax expense:
(1) Current Tax
(2) Provision for Tax of Earlier Years Writen Back
(3) Deferred Tax
Profit for the Year ( III )
Other Comprehensive Income( OCI)

A (i) Items that will not be reclassified to profit or loss

(ii) Income tax relating to items that will not be reclassified to profit or loss

B (i) Items that will be reclassified to profit or loss

(ii) Income tax relating to items that will be reclassified to profit or loss

Other Comprehensive Income for the Year ( IV )

Total Comprehensive Income for the Year ( III + IV )
Earnings Per Equity Share [Face Value Rs. 2 each]
Basic ( Rs.)
Diluted (Rs.)
Standalone Statement of Assets and Liabilities Rs.(Crores)
As at As at As at As at
Particulars 31.03.2018 31.03.2017 31.03.2016 31.03.2015
ASSETS
(1) Non-Current Assets

(a) Property, Plant and Equipment 9,539.69 6,857.98 6,944.88 5,184.50

(b) Capital Work-in-Progress 745.11 375.48 317.65 450.36

(c) Other Intangible Assets 1,276.87 28.83 18.17 5.64

(d) Financial Assets

(i) Investments 33,586.74 7,424.09 5,886.91 5,636.16

(ii) Loans 138.32 141.80 126.94 112.24

(iii) Other financial assets 36.60 1.36 1.09 -

(e) Non–current Assets (net) 32.04 31.69 94.39 -

(f) Other non-current assets 236.57 57.64 60.56 74.03

(2) Current Assets

(a) Inventories 2,591.66 1,732.74 1,605.37 1,4320.20

(b) Financial Assets

(i) Investments 1,959.85 1,572.33 1,212.71 952.58

(ii) Trade Receivables 2,609.32 1,189.55 992.37 687.49

(iii) Cash and cash Equivalents 26.07 34.59 23.06 42.55

(iv)Bank balances other than Cash and Cash Equivalents 15.81 18.15 11.95 10.64

(v) Loans 84.90 50.55 65.37 90.38

(vi) Other financial assets 218.01 43.20 20.71 10.58

(c) Current Tax Assets (Net) 84.53 - 83.66 81.02

(d) Other current assets 544.23 289.84 326.86 471.76
TOTAL ASSETS 53,728.86 19,851.10 17,796.37 15,245.42
EQUITY AND LIABILITIES
Equity

(a) Equity Share Capital 131.48 93.37 93.36 91.87

(b) Other Equity 44,658.35 16,137.61 13,778.49 12,430.19
(c) Non Controlling Interest - - - -
Total Equity 44,789.83 16,230.98 13,871.85 12,552.06
Liabilities
(1) Non-Current Liabilities

(a) Financial Liabilities

(i) Borrowings 858.74 386.38 635.27 857.69

(b) Provisions 31.32 77.51 72.28 49.57

(c) Deferred Tax Liabilities (Net) 1,834.96 662.98 494.11 342.63

(d) Other non-current liabilities 38.68 29.49 21.45 19.83

(2) Current Liabilities

(a) Financial Liabilities

(i) Borrowings 1,729.32 60.81 981.85 74.20

(ii) Trade Payables 2131.79 1,125.93 593.22 484.40

(iii) Other Financial Liabilities 658.59 364.18 335.66 327.68

(b) Other Current Liabilities 920.69 586.00 440.10 300.27

(c) Provisions 477.39 85.06 97.96 10.62

(d) Current Tax Liabilities (Net) 257.55 241.78 252.62 256.47

Total Liabilities 8,938.50 3,620.12 3,924.52 2,693.36

TOTAL EQUITY AND LIABILITIES 53,728.86 19,851.10 17,796.37 15,245.42