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A

                    COMPREHENSIVE PROJECT

                                  ON

    “A Comparative Study on the Financial Performance of Cement
                             Industry”

                            Submitted to

                   Anand Institute of Management

                  IN PARTIAL FULFILLMENT OF THE

       REQUIREMENT OF THE AWARD FOR THE DEGREE OF

             MASTER OF BUSINESS ASMINISTRATION

                                  In

                  Gujarat Technological University

                     UNDER THE GUIDANCE OF

                          Faculty Guide

                              Krishna Gor

                           Assistant Prof.

                            Submitted by



Jaynand Patalia                                 Rupesh Vasava

Enrollment No.:107020592058                 Enrollment No.:107020592056

                       MBA SEMESTER III/IV

                   Anand Institute of Management

                         MBA PROGRAMME

            Affiliated to Gujarat Technological University

                            Ahmedabad

                          December, 2011
CERTIFICATE
TABLE OF CONTENTS
PREFACE
ACKNOWLEDGEMENT
DECLARATION
EXECUTIVE SUMMARY

SR. NO.                  PARTICULAR               PAGE NO.

          PART – I INDUSTRY STUDY


1.        OVERVIEW OF CEMENT INDUSTRY                    1

2.        PRODUCT PROFILE                               `5

3.        DEMAND DETERMINATION                           9

4.        PLAYERS IN THE INDUSTRY                       12

5.        DISTRIBUTION CHANNELS                         14

6.        KEY ISSUES AND CURRENT TRENDS                 15

7.        LITERATURE REVIEW                             18

8.        OBJECTIVES OF THE STUDY                       19

9.        PESTEL ANALYSIS OF THE INDUSTRY               21

10.       PORTERS FIVE FORCE MODEL                      23

          PART – II COMPANY STUDY


11.       OVERVIEW OF THE COMPANIES                     24

12.       PRODUCT PROFILE                               33

13.       FINANCIAL ANALYSIS                            34

14.       SWOT ANALYSIS OF AMBUJA CEMENT                44

15.       SWOT ANALYSIS OF BINANI CEMENT                45

16.       COMPARATIVE ANALYSIS OF THE COMPANIES         47

17.       FINDINGS AND CONCLUSIONS                      61



ANNEXTURES

BBILIOGRAPHY
PREFACE


“Experience is the best teacher.” This saying plays a guiding line in our lives and
also in project reports that are an integral part of the MBA programmed in Gujarat
technological University.

Today’s age is an age of management. Management is the backbone of any
organization or any activity done. The real success of management lies in applying
the professional management techniques an all managerial activities.

Hence, to attain this objective and to have the outlook of performance of the cement
industry and to analyze the emerging trends of the same in Indian Economy we have
undertaken the Comprehensive Project on “A Comparative Analysis of the
Financial Performance of the Cement Industry”.
ACKNOWLEDGEMENT


Nothing concrete can be achieved without an optimal combination of
inspiration and perspiration. No work can be accomplished without taking the
guidance of the import. It is only the critiques for the ingenious intellectual
that helps transform a product into a quality product.


A project is a major milestone during the study period of a student. As such this
project was a challenge to us and was an opportunity to prove our caliber. It would
not have been possible to see through the undertaken project without the guidance
of Prof. KRISHNA GOR. It was purely on the basis of her experience and
knowledge that we were able to clear all the theoretical and technical hurdles during
the development phases of this project work.


I even show my gratitude towards Dr. N.N. Patel, Director, AIM, ANAND and my
faculty guide Prof Krishna Gor without whose support my project would not be
possible to complete.

I have been able to prepare my report successfully and I acknowledge a special
thanks to all those people without whose support it was impossible for me to make
the project report.
DECLARATION


We, JAYNAND PATALIA AND RUPESH VASAVA, hereby declare that the

Report for Comprehensive Project entitled

“A COMPARATIVE ANALYSIS OF FINANCIAL PERFORMANCE OF CEMENT
INDUSTRY WITH SPECIAL REFRENCE”

Is a result of our own work and our indebtedness to other work publications

References, if any, have been duly acknowledged.




Place:

Date:                                                       JAYNAND PATALIA




                                                              RUPESH VASAVA
EXECUTIVE SUMMARY


The title of the comprehensive project is “A Comparative Analysis of Financial
Performance of Cement Industry”. Comparative analysis study helps in
determining the various financial studies of the companies. Comparative study
shows the relation between the companies as well as relation between the various
industries of the economy.

Thus, we selected this title for the comparative study of companies in cement
industry. We have selected the following two companies for the study of the
comparative analysis of financial performance of the cement industry in India.




           1) AMBUJA CEMENT LTD.

           2) BINANI CEMENT LTD.




The companies have been chosen based on market share, production capacity and
net profits for the previous years. Both the companies are the leading producer in the
cement industry in India.

The cement industry is the leading industry in India which is having a very high
growth rate. Cement Industry of India is the world’s second largest producer of
cement products after China. Thus, Indian cement industries in India have a very
high growth rate and it contributes very high percentage to the GDP of Indian
Economy.
LIST OF TABLES
Sr. No.         PARTICULARS           TABLE NO.        PAGE NO.
1.        GROWTH OF CEMENT                         1                   4
          DEMAND

2.        DEMAND DETERMINATION                     2              10

3.        MAJOR PLAYERS IN NORTH                   3              12

4.        MAJOR PLAYERS IN SOUTH                   4              13

                           RATIOS ANALYSIS

5.        OPERATING PROFIT MARGIN                  5              34

6.        GROSS PROFIT MARGIN                      6              35

7.        NET PROFIT MARGIN                        7              35

8.        CURRENT RATIO                            8              36

9.        QUICK RATIO                              9              36

10.       DEBT EQUITY RATIO                       10              37

11.       INVENTORY TURNOVER RATIO                11              38

12.       DEBTORS TURNOVER RATIO                  12              38

13.       ASSET TURNOVER RATIO                    13              39

                           DUPONT ANALYSIS

14.       AMBUJA CEMENT                           14              40

15.       BINANI CEMENT                           15              42

                        COMPARATIVE ANALYSIS
16.       RETURN ON NET ASSET                     16              47

17.       RETURN ON EQUITY                        17              48

18.       RETURN ON PROFIT MARGIN                 18              49

19.       FINANCIAL LEVERAGE (I/S)                19              50

20.       FINANICIAL LEVERAGE (B/S)               20              51

21.       RATIO ANALYSIS                          21 52,53,54,55,56,
                                                     57,58,59,60
LIST OF GRAPHS


Sr. No.            PARTICULARS              GRAPH NO.   PAGE NO.

1.        PROCESS WISE                              1          8

2.        DEMAND DETERMINATION                      2         10

3.        CAPCITY DISTRIBUTION                      3         11

4.        MAJOR PLAYERS IN NORTH                    4         12

5.        MAJOR PLAYERS IN SOUTH                    5         13

                        COMPARATIVE ANALYSIS

6.        RETURN ON NET ASSETS                      6         47

7.        RETURN ON EQUITY                          7         48

8.        RETURN ON PROFIT MARGIN                   8         49

9.        FINANCIAL LEVERAGE (I/S)                  9         50

10.       FINANCIAL LEVERAGE (B/S)                 10         51

11.       GROSS PROFIT MARGIN                      11         52

12.       OPERATING PROFIT MARGIN                  12         53

13        NET PROFIT MARGIN                        13         54

14.       CURRENT RATIO                            14         55

15.       QUICK RATIO                              15         56

16.       DEBT EQUITY RATIO                        16         57

17.       INVENTORY TURNOVER RATIO                 17         58

18.       DEBTORS TURNOVER RATIO                   18         59

19.       ASSETS TURNOVER RATIO                    19         60




                         LIST OF DIAGRAMS
Sr. No.          PARTICULARS          DIAGRAM NO.   PAGE NO.

1.        CEMENT MANUFACTURING                  1          7
          PROCESS

2.        PORTER’S FIVE FORCE MODEL             2         23

3.        DUPONT ANALYSIS(AMBUJA                3         41
          CEMENT)

4.        DUPONT ANALYSIS(BINANI                4         43
          CEMENT)
PART-1 INDUSTRY STUDY
PART-2 COMPANY STUDY




       ANNEXTURES
BALANCE SHEET AND PROFIT AND LOSS

Balance Sheet of Ambuja                    ------------------- in Rs. Cr. -------------------
Cements
                                     Dec '11      Dec '10         Dec '09         Dec '08        Dec '07
                                    12 mths       12 mths         12 mths         12 mths       12 mths
Sources Of Funds
Total Share Capital                   306.87       305.97          304.74          304.52         304.48
Equity Share Capital                  306.87       305.97          304.74          304.52         304.48
Share Application Money                32.12         1.34            0.24            0.34           0.00
Preference Share Capital                0.00         0.00            0.00            0.00           0.00
Reserves                            7,730.45     7,022.79        6,165.92        5,368.01       4,356.77
Revaluation Reserves                    0.00         0.00            0.00            0.00           0.00
Networth                            8,069.44     7,330.10        6,470.90        5,672.87       4,661.25
Secured Loans                           0.00         0.00          100.00          100.00         100.00
Unsecured Loans                        49.36        65.03           65.70          188.67         230.42
Total Debt                             49.36        65.03          165.70          288.67         330.42
Total Liabilities                   8,118.80     7,395.13        6,636.60        5,961.54       4,991.67
                                     Dec '11      Dec '10         Dec '09         Dec '08        Dec '07
                                    12 mths       12 mths         12 mths         12 mths       12 mths
Application Of Funds
Gross Block                         9,702.29     8,778.82        6,224.13        5,706.94       5,231.05
Less: Accum. Depreciation           3,515.83     3,151.07        2,784.09        2,514.19       2,271.19
Net Block                           6,186.46     5,627.75        3,440.04        3,192.75       2,959.86
Capital Work in Progress              577.28       930.70        2,714.43        1,947.22         696.79
Investments                           864.31       625.95          727.01          332.39       1,288.94
Inventories                           924.97       901.86          683.24          939.75         581.60
Sundry Debtors                        240.85       128.18          152.20          224.60         145.68
Cash and Bank Balance                 175.43       198.40          116.64          123.73         114.94
Total Current Assets                1,341.25     1,228.44          952.08        1,288.08         842.22
Loans and Advances                    674.03       422.61          292.65          351.82         237.04
Fixed Deposits                      1,895.80     1,549.77          764.04          728.11         535.85
Total CA, Loans & Advances          3,911.08     3,200.82        2,008.77        2,368.01       1,615.11
Deffered Credit                         0.00         0.00            0.00            0.00           0.00
Current Liabilities                 2,314.49     1,893.98        1,582.32        1,412.55       1,081.70
Provisions                          1,106.11     1,096.57          674.04          470.56         493.55
Total CL & Provisions               3,420.60     2,990.55        2,256.36        1,883.11       1,575.25
Net Current Assets                    490.48       210.27         -247.59          484.90          39.86
Miscellaneous Expenses                  0.27         0.46            2.71            4.28           6.22
Total Assets                        8,118.80     7,395.13        6,636.60        5,961.54       4,991.67
Contingent Liabilities               749.28        754.38          647.12        1,224.42       1,193.08
Book Value (Rs)                       52.38         47.90           42.47           37.26          30.62
Balance Sheet of Ambuja             ------------------- in Rs. Cr. -------------------
Cements
                              Dec '06       Jun '05         Jun '04         Jun '03       Jun '02
                             18 mths       12 mths         12 mths         12 mths       12 mths
Sources Of Funds
Total Share Capital            303.37       270.38          179.40          155.30         155.17
Equity Share Capital           303.37       270.38          179.40          155.30         155.17
Share Application Money          1.14         0.03            0.07            0.09          18.16
Preference Share Capital         0.00         0.00            0.00            0.00           0.00
Reserves                     3,187.21     1,908.01        1,842.29        1,461.25       1,449.32
Revaluation Reserves             0.00         0.00            0.00            0.00           0.00
Networth                     3,491.72     2,178.42        2,021.76        1,616.64       1,622.65
Secured Loans                  317.77       549.33          649.78          845.00       1,191.15
Unsecured Loans                547.61       578.12          619.90          906.28         592.00
Total Debt                     865.38     1,127.45        1,269.68        1,751.28       1,783.15
Total Liabilities            4,357.10     3,305.87        3,291.44        3,367.92       3,405.80
                              Dec '06       Jun '05         Jun '04         Jun '03        Jun '02
                             18 mths       12 mths         12 mths         12 mths       12 mths
Application Of Funds
Gross Block                  4,542.50     3,709.17        3,658.07        2,957.93       2,855.43
Less: Accum. Depreciation    2,053.32     1,463.93        1,284.14        1,012.04         847.81
Net Block                    2,489.18     2,245.24        2,373.93        1,945.89       2,007.62
Capital Work in Progress       634.93       118.10          124.29           66.06          44.64
Investments                  1,133.12     1,125.06        1,010.97        1,101.71       1,132.05
Inventories                    408.82       317.00          254.28          224.20         208.37
Sundry Debtors                  89.95        45.84           42.71           45.94          39.01
Cash and Bank Balance          172.36        86.27           68.52           30.61          50.47
Total Current Assets           671.13       449.11          365.51          300.75         297.85
Loans and Advances             313.03       145.10          171.84          522.86         364.38
Fixed Deposits                 205.74         0.26            0.31            0.27           0.26
Total CA, Loans & Advances   1,189.90       594.47          537.66          823.88         662.49
Deffered Credit                  0.00         0.00            0.00            0.00           0.00
Current Liabilities            929.06       676.70          692.96          499.85         410.98
Provisions                     168.68       106.77           71.34           74.31          34.30
Total CL & Provisions        1,097.74       783.47          764.30          574.16         445.28
Net Current Assets              92.16      -189.00         -226.64          249.72         217.21
Miscellaneous Expenses           7.71         6.47            8.89            4.54           4.28
Total Assets                 4,357.10     3,305.87        3,291.44        3,367.92       3,405.80
Contingent Liabilities        506.71        332.70          194.57          190.41        270.47
Book Value (Rs)                23.01         16.11          112.69          104.08        103.39
Profit & Loss account of               ------------------- in Rs. Cr. -------------------
Ambuja Cements
                                 Dec '11      Dec '10         Dec '09         Dec '08         Dec '07
                                12 mths       12 mths         12 mths         12 mths        12 mths
Income
Sales Turnover                  9,601.42     8,286.20        7,763.93        7,089.89        6,469.68
Excise Duty                     1,128.28       914.68          680.72          907.80          798.29
Net Sales                       8,473.14     7,371.52        7,083.21        6,182.09        5,671.39
Other Income                      234.38       214.58          180.41          468.18          965.04
Stock Adjustments                 -57.00        54.28          -49.44           62.62           58.79
Total Income                    8,650.52     7,640.38        7,214.18        6,712.89        6,695.22
Expenditure
Raw Materials                   1,652.18     1,475.20        1,642.09        1,251.08          953.32
Power & Fuel Cost               2,006.34     1,697.34        1,422.75        1,325.69        1,004.20
Employee Cost                     425.46       344.91          274.29          266.94          209.46
Other Manufacturing Expenses      254.06       227.03          161.66          145.61          124.50
Selling and Admin Expenses      1,865.09     1,633.14        1,426.15        1,276.80        1,254.41
Miscellaneous Expenses            256.20       199.42          202.19          215.64          140.63
Preoperative Exp Capitalised       -6.74       -11.36          -19.33          -21.19           -9.47
Total Expenses                  6,452.59     5,565.68        5,109.80        4,460.57        3,677.05
                                 Dec '11      Dec '10         Dec '09         Dec '08         Dec '07
                                12 mths       12 mths         12 mths         12 mths        12 mths
Operating Profit                1,963.55     1,860.12        1,923.97        1,784.14        2,053.13
PBDIT                           2,197.93     2,074.70        2,104.38        2,252.32        3,018.17
Interest                           52.63        48.69           22.43           32.06           75.85
PBDT                            2,145.30     2,026.01        2,081.95        2,220.26        2,942.32
Depreciation                      445.15       387.19          296.99          259.76          236.34
Other Written Off                   0.19         0.61            1.57            1.72            0.47
Profit Before Tax               1,699.96     1,638.21        1,783.39        1,958.78        2,705.51
Extra-ordinary items               92.08        64.22           26.52           11.28         -194.92
PBT (Post Extra-ord Items)      1,792.04     1,702.43        1,809.91        1,970.06        2,510.59
Tax                               541.46       435.55          585.14          567.79          741.49
Reported Net Profit             1,228.86     1,263.61        1,218.37        1,402.27        1,769.10
Total Value Addition            4,800.41     4,090.48        3,467.71        3,209.49        2,723.73
Preference Dividend                 0.00         0.00            0.00            0.00            0.00
Equity Dividend                   490.69       397.22          365.59          334.97          532.65
Corporate Dividend Tax             79.60        65.27           62.13           56.92           90.52
Per share data (annualised)
Shares in issue (lakhs)        15,343.69    15,298.59       15,237.11       15,225.99       15,223.75
Earning Per Share (Rs)              8.01         8.26            8.00            9.21           11.62
Equity Dividend (%)               160.00       130.00          120.00          110.00          175.00
Book Value (Rs)                    52.38        47.90           42.47           37.26           30.62
Profit & Loss account of              ------------------- in Rs. Cr. -------------------
Ambuja Cements
                                 Dec '06         Jun '05        Jun '04        Jun '03      Jun '02
                                18 mths        12 mths         12 mths        12 mths      12 mths
Income
Sales Turnover                  7,022.59       3,025.84       2,305.18       2,025.10      1,582.63
Excise Duty                       796.31         428.79         343.05         290.58        198.85
Net Sales                       6,226.28       2,597.05       1,962.13       1,734.52      1,383.78
Other Income                      111.07          70.51          71.84          68.48         32.74
Stock Adjustments                 -10.92           6.97          11.27           4.39        -12.79
Total Income                    6,326.43       2,674.53       2,045.24       1,807.39      1,403.73
Expenditure
Raw Materials                   1,007.07         435.52         337.45         307.97       228.98
Power & Fuel Cost               1,239.87         678.40         463.63         430.60       323.99
Employee Cost                     235.98         106.44          88.68          68.86        49.87
Other Manufacturing Expenses      185.59          92.97          71.68          60.92        42.87
Selling and Admin Expenses      1,273.55         502.01         408.14         335.16       218.53
Miscellaneous Expenses            122.96          61.77          55.95          56.60        52.90
Preoperative Exp Capitalised      -10.82           -3.43          0.00           0.00         0.00
Total Expenses                  4,054.20       1,873.68       1,425.53       1,260.11       917.14
                                 Dec '06         Jun '05        Jun '04        Jun '03      Jun '02
                                18 mths        12 mths         12 mths        12 mths      12 mths
Operating Profit                2,161.16         730.34         547.87         478.80       453.85
PBDIT                           2,272.23         800.85         619.71         547.28       486.59
Interest                          113.23          91.77         114.22         126.62       117.67
PBDT                            2,159.00         709.08         505.49         420.66       368.92
Depreciation                      326.12         195.41         168.61         171.64       137.82
Other Written Off                   1.07           0.94           0.70           1.00         0.76
Profit Before Tax               1,831.81         512.73         336.18         248.02       230.34
Extra-ordinary items               10.17           6.08          47.59           5.81        -6.32
PBT (Post Extra-ord Items)      1,841.98         518.81         383.77         253.83       224.02
Tax                               338.73          50.52          46.98          31.74        45.12
Reported Net Profit             1,503.25         468.29         336.79         221.73       186.15
Total Value Addition            3,047.13       1,438.16       1,088.08         952.14       688.15
Preference Dividend                 0.00           0.00           0.00           0.00         0.00
Equity Dividend                   461.24         189.16         142.07         108.71        93.11
Corporate Dividend Tax             64.69          26.54          18.34          13.93         0.00
Per share data (annualised)
Shares in issue (lakhs)        15,168.29     13,518.83        1,794.00       1,553.18      1,551.90
Earning Per Share (Rs)              9.91          3.46           18.77          14.28         11.99
Equity Dividend (%)               165.00         90.00           80.00          70.00         60.00
Book Value (Rs)                    23.01         16.11          112.69         104.08        103.39
Balance Sheet of Binani             ------------------- in Rs. Cr. -------------------
Cement
                             Mar '11        Mar '10         Mar '09         Mar '08      Mar '07
                             12 mths       12 mths          12 mths         12 mths      12 mths
Sources Of Funds
Total Share Capital            188.60        203.10          203.10          203.10      203.10
Equity Share Capital           188.60        203.10          203.10          203.10      203.10
Share Application Money          0.00          0.00            0.00            0.00        0.00
Preference Share Capital         0.00          0.00            0.00            0.00        0.00
Reserves                       390.42        472.05          273.30          214.54       98.12
Revaluation Reserves             0.00          0.00            0.00            0.00        0.00
Net worth                      579.02        675.15          476.40          417.64      301.22
Secured Loans                1,025.44        922.96          740.20          732.33      658.77
Unsecured Loans                210.14         60.14           38.14           38.14       32.23
Total Debt                   1,235.58        983.10          778.34          770.47      691.00
Total Liabilities            1,814.60      1,658.25        1,254.74        1,188.11      992.22
                              Mar '11       Mar '10         Mar '09         Mar '08      Mar '07
                             12 mths       12 mths          12 mths         12 mths      12 mths
Application Of Funds
Gross Block                  1,897.03      1,800.51        1,588.68        1,445.39      839.99
Less: Accum. Depreciation      641.25        552.82          471.19          397.11      347.03
Net Block                    1,255.78      1,247.69        1,117.49        1,048.28      492.96
Capital Work in Progress       122.21        100.01          202.30          171.47      517.37
Investments                    546.12        374.57          211.30           46.77        0.00
Inventories                    161.84        169.98          212.54          217.44       57.25
Sundry Debtors                   0.00          0.00            0.00            0.01        0.24
Cash and Bank Balance          137.28        165.49           70.94           43.28       27.53
Total Current Assets           299.12        335.47          283.48          260.73       85.02
Loans and Advances             291.46        262.09          184.79          188.72      179.43
Fixed Deposits                  93.19        143.95           16.27           52.65       20.17
Total CA, Loans & Advances     683.77        741.51          484.54          502.10      284.62
Deffered Credit                  0.00          0.00            0.00            0.00        0.00
Current Liabilities            736.62        673.96          691.10          498.21      241.37
Provisions                      56.67        131.56           69.80           82.32       61.35
Total CL & Provisions          793.29        805.52          760.90          580.53      302.72
Net Current Assets            -109.52        -64.01         -276.36          -78.43      -18.10
Miscellaneous Expenses           0.00          0.00            0.00            0.00        0.00
Total Assets                 1,814.59      1,658.26        1,254.73        1,188.09      992.23
Contingent Liabilities        462.92         420.75          127.10          392.38      156.98
Book Value (Rs)                30.70          33.24           23.46           20.56       14.83
Balance Sheet of Binani            ------------------- in Rs. Cr. -------------------
Cement
                             Mar '06      Mar '05         Mar '04         Mar '03       Mar '02
                             12 mths      12 mths         12 mths         12 mths       12 mths
Sources Of Funds
Total Share Capital          203.10       217.07          217.07          217.07         422.91
Equity Share Capital         203.10       217.07          217.07          217.07         422.91
Share Application Money        0.00         0.00            0.00            0.00           0.00
Preference Share Capital       0.00         0.00            0.00            0.00           0.00
Reserves                      50.04        17.74            3.79            0.33        -138.74
Revaluation Reserves           0.00         0.00            0.00            0.00           0.00
Networth                     253.14       234.81          220.86          217.40         284.17
Secured Loans                534.36       487.86          413.56          407.79         367.90
Unsecured Loans                0.00         9.90            1.65            0.00           0.00
Total Debt                   534.36       497.76          415.21          407.79         367.90
Total Liabilities            787.50       732.57          636.07          625.19         652.07
                             Mar '06      Mar '05         Mar '04         Mar '03       Mar '02
                             12 mths      12 mths         12 mths         12 mths       12 mths
Application Of Funds
Gross Block                  803.95        791.95          767.89          745.56       732.24
Less: Accum. Depreciation    308.07        266.99          228.68          189.70       150.49
Net Block                    495.88        524.96          539.21          555.86       581.75
Capital Work in Progress     100.02          5.16            5.06            2.58         1.57
Investments                    0.00         23.09           23.25           23.25        23.16
Inventories                   33.55         33.60           39.59           40.03        39.86
Sundry Debtors                 0.23          0.43            0.78            0.79         2.01
Cash and Bank Balance         15.66          8.81            8.82           14.64        16.49
Total Current Assets          49.44         42.84           49.19           55.46        58.36
Loans and Advances           153.54        222.25           86.18           57.17        70.88
Fixed Deposits                87.10          0.00            0.00            0.00         0.00
Total CA, Loans & Advances   290.08        265.09          135.37          112.63       129.24
Deffered Credit                0.00          0.00            0.00            0.00         0.00
Current Liabilities           78.64         83.48           66.82           69.12        83.65
Provisions                    19.83          2.24            0.00            0.00         0.00
Total CL & Provisions         98.47         85.72           66.82           69.12        83.65
Net Current Assets           191.61        179.37           68.55           43.51        45.59
Miscellaneous Expenses         0.00          0.00            0.00            0.00         0.00
Total Assets                 787.51        732.58          636.07          625.20       652.07
Contingent Liabilities       427.12           3.20            0.00            0.00         0.00
Book Value (Rs)               12.46          10.82           10.17           10.02         6.72
Profit & Loss account of              ------------------- in Rs. Cr. -------------------
Binani Cement
                               Mar '11       Mar '10         Mar '09         Mar '08       Mar '07
                               12 mths       12 mths         12 mths         12 mths       12 mths
Income
Sales Turnover                 1,983.67     2,069.10        1,716.78        1,149.98        783.59
Excise Duty                      255.17       211.22          220.24          186.94        105.15
Net Sales                      1,728.50     1,857.88        1,496.54          963.04        678.44
Other Income                      13.73        12.93          -14.39            6.17         -1.31
Stock Adjustments                -13.70       -48.87           23.25           56.24          6.53
Total Income                   1,728.53     1,821.94        1,505.40        1,025.45        683.66
Expenditure
Raw Materials                    265.37       252.35          200.14         129.89         91.74
Power & Fuel Cost                512.96       429.85          535.99         235.56        142.03
Employee Cost                     41.27        34.35           29.39          25.50         18.78
Other Manufacturing Expenses      76.05        67.57           52.79          32.39         21.29
Selling and Admin Expenses       496.85       403.40          354.47         236.39        165.10
Miscellaneous Expenses            50.83        36.43           22.91          13.21          7.99
Preoperative Exp Capitalised       0.00         0.00            0.00           0.00          0.00
Total Expenses                 1,443.33     1,223.95        1,195.69         672.94        446.93
                                Mar '11      Mar '10         Mar '09         Mar '08       Mar '07
                               12 mths       12 mths         12 mths         12 mths       12 mths
Operating Profit                 271.47       585.06          324.10          346.34        238.04
PBDIT                            285.20       597.99          309.71          352.51        236.73
Interest                         103.44        78.51           71.52           46.47         32.62
PBDT                             181.76       519.48          238.19          306.04        204.11
Depreciation                      99.50        91.66           80.31           55.67         43.46
Other Written Off                  0.00         0.00            0.00            0.00          0.00
Profit Before Tax                 82.26       427.82          157.88          250.37        160.65
Extra-ordinary items              11.73       -12.84            0.00            0.00          0.00
PBT (Post Extra-ord Items)        93.99       414.98          157.88          250.37        160.65
Tax                                3.22       126.86           45.89           69.02         60.96
Reported Net Profit               90.51       281.92          108.67          175.82         95.61
Total Value Addition           1,177.95       971.60          995.56          543.04        355.19
Preference Dividend                0.00         0.00            0.00            0.00         40.62
Equity Dividend                   47.15        71.09           42.65           50.78          0.00
Corporate Dividend Tax             7.65        12.08            7.25            8.63          6.90
Per share data (annualised)
Shares in issue (lakhs)        1,886.01     2,031.01        2,031.01        2,031.01       2,031.01
Earnings Per Share (Rs)            4.80        13.88            5.35            8.66           2.71
Equity Dividend (%)               25.00        35.00           21.00           25.00           0.00
Book Value (Rs)                   30.70        33.24           23.46           20.56          14.83
Profit & Loss account of              ------------------- in Rs. Cr. -------------------
Binani Cement
                               Mar '06       Mar '05         Mar '04         Mar '03       Mar '02
                               12 mths       12 mths         12 mths         12 mths       12 mths
Income
Sales Turnover                  584.65        529.74          462.68          441.08        433.60
Excise Duty                      94.37         90.94           87.69           74.81         67.34
Net Sales                       490.28        438.80          374.99          366.27        366.26
Other Income                      0.85         -4.38            4.12            3.06          2.84
Stock Adjustments                -3.60         -6.37            0.00            0.00          0.00
Total Income                    487.53        428.05          379.11          369.33        369.10
Expenditure
Raw Materials                   72.20         64.39           46.84           45.20         35.43
Power & Fuel Cost              137.49        127.89            0.00            0.00          0.00
Employee Cost                   15.09         13.56           13.19           12.24         10.93
Other Manufacturing Expenses    20.97         19.02          119.30          119.49        116.51
Selling and Admin Expenses      94.65         86.60            0.00            0.00          0.00
Miscellaneous Expenses           8.65          9.78           98.00           94.44         98.91
Preoperative Exp Capitalised     0.00          0.00            0.00            0.00          0.00
Total Expenses                 349.05        321.24          277.33          271.37        261.78
                               Mar '06       Mar '05         Mar '04         Mar '03       Mar '02
                               12 mths       12 mths         12 mths         12 mths       12 mths
Operating Profit                137.63        111.19           97.66           94.90        104.48
PBDIT                           138.48        106.81          101.78           97.96        107.32
Interest                         34.17         52.35           56.02           56.34         61.73
PBDT                            104.31         54.46           45.76           41.62         45.59
Depreciation                     42.91         42.00           41.28           40.59         39.48
Other Written Off                 0.00          0.00            0.00            0.00          0.00
Profit Before Tax                61.40         12.46            4.48            1.03          6.11
Extra-ordinary items              0.00          0.00           -0.67           -0.80         -1.03
PBT (Post Extra-ord Items)       61.40         12.46            3.81            0.23          5.08
Tax                               5.12          0.55            0.34            0.00          0.00
Reported Net Profit              52.96          6.45            4.13            1.03          6.13
Total Value Addition            276.84        256.85          230.49          226.17        226.35
Preference Dividend              10.06          0.00            0.00            0.00          0.00
Equity Dividend                   0.00          0.00            0.00            0.00          0.00
Corporate Dividend Tax            1.41          0.00            0.00            0.00          0.00
Per share data (annualised)
Shares in issue (lakhs)        2,031.01     2,170.68        2,170.70        2,170.70       4,229.10
Earning Per Share (Rs)             2.11         0.30            0.19            0.05           0.14
Equity Dividend (%)                0.00         0.00            0.00            0.00           0.00
Book Value (Rs)                   12.46        10.82           10.17           10.02           6.72
BIBLIOGRAPHY



 Books

    I. M. Pandey, Financial Management, Vikas Publishing Pvt, Ltd, and
    (9th Edition).


 Websites


      http://dipp.nic.in/English/Performance_Cement_Industry
      http://www.slideshare.net/shonethattil/indian-cement-industry-
      report
      http://newsletters.cii.in/newsletters/mailer/trade_talk/pdf/Cement%
      20Industry%20in%20India-%20Trade%20Perspectives
      http://www.nseindia.com/content/ncfm/EDBM_workbook.pdf
      www.ambujacement.com
      http://www.binaniindustries.com/group-companies/binani-
      industries/profile.asp
      http://www.scribd.com/doc/19102170/A-case-study-on-Ambuja-
      Cement


 Other Materials


     Annual report of the company
     Balance Sheet

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Comaparative Analysis of Cement Industry

  • 1. A COMPREHENSIVE PROJECT ON “A Comparative Study on the Financial Performance of Cement Industry” Submitted to Anand Institute of Management IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF MASTER OF BUSINESS ASMINISTRATION In Gujarat Technological University UNDER THE GUIDANCE OF Faculty Guide Krishna Gor Assistant Prof. Submitted by Jaynand Patalia Rupesh Vasava Enrollment No.:107020592058 Enrollment No.:107020592056 MBA SEMESTER III/IV Anand Institute of Management MBA PROGRAMME Affiliated to Gujarat Technological University Ahmedabad December, 2011
  • 3. TABLE OF CONTENTS PREFACE ACKNOWLEDGEMENT DECLARATION EXECUTIVE SUMMARY SR. NO. PARTICULAR PAGE NO. PART – I INDUSTRY STUDY 1. OVERVIEW OF CEMENT INDUSTRY 1 2. PRODUCT PROFILE `5 3. DEMAND DETERMINATION 9 4. PLAYERS IN THE INDUSTRY 12 5. DISTRIBUTION CHANNELS 14 6. KEY ISSUES AND CURRENT TRENDS 15 7. LITERATURE REVIEW 18 8. OBJECTIVES OF THE STUDY 19 9. PESTEL ANALYSIS OF THE INDUSTRY 21 10. PORTERS FIVE FORCE MODEL 23 PART – II COMPANY STUDY 11. OVERVIEW OF THE COMPANIES 24 12. PRODUCT PROFILE 33 13. FINANCIAL ANALYSIS 34 14. SWOT ANALYSIS OF AMBUJA CEMENT 44 15. SWOT ANALYSIS OF BINANI CEMENT 45 16. COMPARATIVE ANALYSIS OF THE COMPANIES 47 17. FINDINGS AND CONCLUSIONS 61 ANNEXTURES BBILIOGRAPHY
  • 4. PREFACE “Experience is the best teacher.” This saying plays a guiding line in our lives and also in project reports that are an integral part of the MBA programmed in Gujarat technological University. Today’s age is an age of management. Management is the backbone of any organization or any activity done. The real success of management lies in applying the professional management techniques an all managerial activities. Hence, to attain this objective and to have the outlook of performance of the cement industry and to analyze the emerging trends of the same in Indian Economy we have undertaken the Comprehensive Project on “A Comparative Analysis of the Financial Performance of the Cement Industry”.
  • 5. ACKNOWLEDGEMENT Nothing concrete can be achieved without an optimal combination of inspiration and perspiration. No work can be accomplished without taking the guidance of the import. It is only the critiques for the ingenious intellectual that helps transform a product into a quality product. A project is a major milestone during the study period of a student. As such this project was a challenge to us and was an opportunity to prove our caliber. It would not have been possible to see through the undertaken project without the guidance of Prof. KRISHNA GOR. It was purely on the basis of her experience and knowledge that we were able to clear all the theoretical and technical hurdles during the development phases of this project work. I even show my gratitude towards Dr. N.N. Patel, Director, AIM, ANAND and my faculty guide Prof Krishna Gor without whose support my project would not be possible to complete. I have been able to prepare my report successfully and I acknowledge a special thanks to all those people without whose support it was impossible for me to make the project report.
  • 6. DECLARATION We, JAYNAND PATALIA AND RUPESH VASAVA, hereby declare that the Report for Comprehensive Project entitled “A COMPARATIVE ANALYSIS OF FINANCIAL PERFORMANCE OF CEMENT INDUSTRY WITH SPECIAL REFRENCE” Is a result of our own work and our indebtedness to other work publications References, if any, have been duly acknowledged. Place: Date: JAYNAND PATALIA RUPESH VASAVA
  • 7. EXECUTIVE SUMMARY The title of the comprehensive project is “A Comparative Analysis of Financial Performance of Cement Industry”. Comparative analysis study helps in determining the various financial studies of the companies. Comparative study shows the relation between the companies as well as relation between the various industries of the economy. Thus, we selected this title for the comparative study of companies in cement industry. We have selected the following two companies for the study of the comparative analysis of financial performance of the cement industry in India. 1) AMBUJA CEMENT LTD. 2) BINANI CEMENT LTD. The companies have been chosen based on market share, production capacity and net profits for the previous years. Both the companies are the leading producer in the cement industry in India. The cement industry is the leading industry in India which is having a very high growth rate. Cement Industry of India is the world’s second largest producer of cement products after China. Thus, Indian cement industries in India have a very high growth rate and it contributes very high percentage to the GDP of Indian Economy.
  • 8. LIST OF TABLES Sr. No. PARTICULARS TABLE NO. PAGE NO. 1. GROWTH OF CEMENT 1 4 DEMAND 2. DEMAND DETERMINATION 2 10 3. MAJOR PLAYERS IN NORTH 3 12 4. MAJOR PLAYERS IN SOUTH 4 13 RATIOS ANALYSIS 5. OPERATING PROFIT MARGIN 5 34 6. GROSS PROFIT MARGIN 6 35 7. NET PROFIT MARGIN 7 35 8. CURRENT RATIO 8 36 9. QUICK RATIO 9 36 10. DEBT EQUITY RATIO 10 37 11. INVENTORY TURNOVER RATIO 11 38 12. DEBTORS TURNOVER RATIO 12 38 13. ASSET TURNOVER RATIO 13 39 DUPONT ANALYSIS 14. AMBUJA CEMENT 14 40 15. BINANI CEMENT 15 42 COMPARATIVE ANALYSIS 16. RETURN ON NET ASSET 16 47 17. RETURN ON EQUITY 17 48 18. RETURN ON PROFIT MARGIN 18 49 19. FINANCIAL LEVERAGE (I/S) 19 50 20. FINANICIAL LEVERAGE (B/S) 20 51 21. RATIO ANALYSIS 21 52,53,54,55,56, 57,58,59,60
  • 9. LIST OF GRAPHS Sr. No. PARTICULARS GRAPH NO. PAGE NO. 1. PROCESS WISE 1 8 2. DEMAND DETERMINATION 2 10 3. CAPCITY DISTRIBUTION 3 11 4. MAJOR PLAYERS IN NORTH 4 12 5. MAJOR PLAYERS IN SOUTH 5 13 COMPARATIVE ANALYSIS 6. RETURN ON NET ASSETS 6 47 7. RETURN ON EQUITY 7 48 8. RETURN ON PROFIT MARGIN 8 49 9. FINANCIAL LEVERAGE (I/S) 9 50 10. FINANCIAL LEVERAGE (B/S) 10 51 11. GROSS PROFIT MARGIN 11 52 12. OPERATING PROFIT MARGIN 12 53 13 NET PROFIT MARGIN 13 54 14. CURRENT RATIO 14 55 15. QUICK RATIO 15 56 16. DEBT EQUITY RATIO 16 57 17. INVENTORY TURNOVER RATIO 17 58 18. DEBTORS TURNOVER RATIO 18 59 19. ASSETS TURNOVER RATIO 19 60 LIST OF DIAGRAMS
  • 10. Sr. No. PARTICULARS DIAGRAM NO. PAGE NO. 1. CEMENT MANUFACTURING 1 7 PROCESS 2. PORTER’S FIVE FORCE MODEL 2 23 3. DUPONT ANALYSIS(AMBUJA 3 41 CEMENT) 4. DUPONT ANALYSIS(BINANI 4 43 CEMENT)
  • 12. PART-2 COMPANY STUDY ANNEXTURES
  • 13. BALANCE SHEET AND PROFIT AND LOSS Balance Sheet of Ambuja ------------------- in Rs. Cr. ------------------- Cements Dec '11 Dec '10 Dec '09 Dec '08 Dec '07 12 mths 12 mths 12 mths 12 mths 12 mths Sources Of Funds Total Share Capital 306.87 305.97 304.74 304.52 304.48 Equity Share Capital 306.87 305.97 304.74 304.52 304.48 Share Application Money 32.12 1.34 0.24 0.34 0.00 Preference Share Capital 0.00 0.00 0.00 0.00 0.00 Reserves 7,730.45 7,022.79 6,165.92 5,368.01 4,356.77 Revaluation Reserves 0.00 0.00 0.00 0.00 0.00 Networth 8,069.44 7,330.10 6,470.90 5,672.87 4,661.25 Secured Loans 0.00 0.00 100.00 100.00 100.00 Unsecured Loans 49.36 65.03 65.70 188.67 230.42 Total Debt 49.36 65.03 165.70 288.67 330.42 Total Liabilities 8,118.80 7,395.13 6,636.60 5,961.54 4,991.67 Dec '11 Dec '10 Dec '09 Dec '08 Dec '07 12 mths 12 mths 12 mths 12 mths 12 mths Application Of Funds Gross Block 9,702.29 8,778.82 6,224.13 5,706.94 5,231.05 Less: Accum. Depreciation 3,515.83 3,151.07 2,784.09 2,514.19 2,271.19 Net Block 6,186.46 5,627.75 3,440.04 3,192.75 2,959.86 Capital Work in Progress 577.28 930.70 2,714.43 1,947.22 696.79 Investments 864.31 625.95 727.01 332.39 1,288.94 Inventories 924.97 901.86 683.24 939.75 581.60 Sundry Debtors 240.85 128.18 152.20 224.60 145.68 Cash and Bank Balance 175.43 198.40 116.64 123.73 114.94 Total Current Assets 1,341.25 1,228.44 952.08 1,288.08 842.22 Loans and Advances 674.03 422.61 292.65 351.82 237.04 Fixed Deposits 1,895.80 1,549.77 764.04 728.11 535.85 Total CA, Loans & Advances 3,911.08 3,200.82 2,008.77 2,368.01 1,615.11 Deffered Credit 0.00 0.00 0.00 0.00 0.00 Current Liabilities 2,314.49 1,893.98 1,582.32 1,412.55 1,081.70 Provisions 1,106.11 1,096.57 674.04 470.56 493.55 Total CL & Provisions 3,420.60 2,990.55 2,256.36 1,883.11 1,575.25 Net Current Assets 490.48 210.27 -247.59 484.90 39.86 Miscellaneous Expenses 0.27 0.46 2.71 4.28 6.22 Total Assets 8,118.80 7,395.13 6,636.60 5,961.54 4,991.67 Contingent Liabilities 749.28 754.38 647.12 1,224.42 1,193.08 Book Value (Rs) 52.38 47.90 42.47 37.26 30.62
  • 14. Balance Sheet of Ambuja ------------------- in Rs. Cr. ------------------- Cements Dec '06 Jun '05 Jun '04 Jun '03 Jun '02 18 mths 12 mths 12 mths 12 mths 12 mths Sources Of Funds Total Share Capital 303.37 270.38 179.40 155.30 155.17 Equity Share Capital 303.37 270.38 179.40 155.30 155.17 Share Application Money 1.14 0.03 0.07 0.09 18.16 Preference Share Capital 0.00 0.00 0.00 0.00 0.00 Reserves 3,187.21 1,908.01 1,842.29 1,461.25 1,449.32 Revaluation Reserves 0.00 0.00 0.00 0.00 0.00 Networth 3,491.72 2,178.42 2,021.76 1,616.64 1,622.65 Secured Loans 317.77 549.33 649.78 845.00 1,191.15 Unsecured Loans 547.61 578.12 619.90 906.28 592.00 Total Debt 865.38 1,127.45 1,269.68 1,751.28 1,783.15 Total Liabilities 4,357.10 3,305.87 3,291.44 3,367.92 3,405.80 Dec '06 Jun '05 Jun '04 Jun '03 Jun '02 18 mths 12 mths 12 mths 12 mths 12 mths Application Of Funds Gross Block 4,542.50 3,709.17 3,658.07 2,957.93 2,855.43 Less: Accum. Depreciation 2,053.32 1,463.93 1,284.14 1,012.04 847.81 Net Block 2,489.18 2,245.24 2,373.93 1,945.89 2,007.62 Capital Work in Progress 634.93 118.10 124.29 66.06 44.64 Investments 1,133.12 1,125.06 1,010.97 1,101.71 1,132.05 Inventories 408.82 317.00 254.28 224.20 208.37 Sundry Debtors 89.95 45.84 42.71 45.94 39.01 Cash and Bank Balance 172.36 86.27 68.52 30.61 50.47 Total Current Assets 671.13 449.11 365.51 300.75 297.85 Loans and Advances 313.03 145.10 171.84 522.86 364.38 Fixed Deposits 205.74 0.26 0.31 0.27 0.26 Total CA, Loans & Advances 1,189.90 594.47 537.66 823.88 662.49 Deffered Credit 0.00 0.00 0.00 0.00 0.00 Current Liabilities 929.06 676.70 692.96 499.85 410.98 Provisions 168.68 106.77 71.34 74.31 34.30 Total CL & Provisions 1,097.74 783.47 764.30 574.16 445.28 Net Current Assets 92.16 -189.00 -226.64 249.72 217.21 Miscellaneous Expenses 7.71 6.47 8.89 4.54 4.28 Total Assets 4,357.10 3,305.87 3,291.44 3,367.92 3,405.80 Contingent Liabilities 506.71 332.70 194.57 190.41 270.47 Book Value (Rs) 23.01 16.11 112.69 104.08 103.39
  • 15. Profit & Loss account of ------------------- in Rs. Cr. ------------------- Ambuja Cements Dec '11 Dec '10 Dec '09 Dec '08 Dec '07 12 mths 12 mths 12 mths 12 mths 12 mths Income Sales Turnover 9,601.42 8,286.20 7,763.93 7,089.89 6,469.68 Excise Duty 1,128.28 914.68 680.72 907.80 798.29 Net Sales 8,473.14 7,371.52 7,083.21 6,182.09 5,671.39 Other Income 234.38 214.58 180.41 468.18 965.04 Stock Adjustments -57.00 54.28 -49.44 62.62 58.79 Total Income 8,650.52 7,640.38 7,214.18 6,712.89 6,695.22 Expenditure Raw Materials 1,652.18 1,475.20 1,642.09 1,251.08 953.32 Power & Fuel Cost 2,006.34 1,697.34 1,422.75 1,325.69 1,004.20 Employee Cost 425.46 344.91 274.29 266.94 209.46 Other Manufacturing Expenses 254.06 227.03 161.66 145.61 124.50 Selling and Admin Expenses 1,865.09 1,633.14 1,426.15 1,276.80 1,254.41 Miscellaneous Expenses 256.20 199.42 202.19 215.64 140.63 Preoperative Exp Capitalised -6.74 -11.36 -19.33 -21.19 -9.47 Total Expenses 6,452.59 5,565.68 5,109.80 4,460.57 3,677.05 Dec '11 Dec '10 Dec '09 Dec '08 Dec '07 12 mths 12 mths 12 mths 12 mths 12 mths Operating Profit 1,963.55 1,860.12 1,923.97 1,784.14 2,053.13 PBDIT 2,197.93 2,074.70 2,104.38 2,252.32 3,018.17 Interest 52.63 48.69 22.43 32.06 75.85 PBDT 2,145.30 2,026.01 2,081.95 2,220.26 2,942.32 Depreciation 445.15 387.19 296.99 259.76 236.34 Other Written Off 0.19 0.61 1.57 1.72 0.47 Profit Before Tax 1,699.96 1,638.21 1,783.39 1,958.78 2,705.51 Extra-ordinary items 92.08 64.22 26.52 11.28 -194.92 PBT (Post Extra-ord Items) 1,792.04 1,702.43 1,809.91 1,970.06 2,510.59 Tax 541.46 435.55 585.14 567.79 741.49 Reported Net Profit 1,228.86 1,263.61 1,218.37 1,402.27 1,769.10 Total Value Addition 4,800.41 4,090.48 3,467.71 3,209.49 2,723.73 Preference Dividend 0.00 0.00 0.00 0.00 0.00 Equity Dividend 490.69 397.22 365.59 334.97 532.65 Corporate Dividend Tax 79.60 65.27 62.13 56.92 90.52 Per share data (annualised) Shares in issue (lakhs) 15,343.69 15,298.59 15,237.11 15,225.99 15,223.75 Earning Per Share (Rs) 8.01 8.26 8.00 9.21 11.62 Equity Dividend (%) 160.00 130.00 120.00 110.00 175.00 Book Value (Rs) 52.38 47.90 42.47 37.26 30.62
  • 16. Profit & Loss account of ------------------- in Rs. Cr. ------------------- Ambuja Cements Dec '06 Jun '05 Jun '04 Jun '03 Jun '02 18 mths 12 mths 12 mths 12 mths 12 mths Income Sales Turnover 7,022.59 3,025.84 2,305.18 2,025.10 1,582.63 Excise Duty 796.31 428.79 343.05 290.58 198.85 Net Sales 6,226.28 2,597.05 1,962.13 1,734.52 1,383.78 Other Income 111.07 70.51 71.84 68.48 32.74 Stock Adjustments -10.92 6.97 11.27 4.39 -12.79 Total Income 6,326.43 2,674.53 2,045.24 1,807.39 1,403.73 Expenditure Raw Materials 1,007.07 435.52 337.45 307.97 228.98 Power & Fuel Cost 1,239.87 678.40 463.63 430.60 323.99 Employee Cost 235.98 106.44 88.68 68.86 49.87 Other Manufacturing Expenses 185.59 92.97 71.68 60.92 42.87 Selling and Admin Expenses 1,273.55 502.01 408.14 335.16 218.53 Miscellaneous Expenses 122.96 61.77 55.95 56.60 52.90 Preoperative Exp Capitalised -10.82 -3.43 0.00 0.00 0.00 Total Expenses 4,054.20 1,873.68 1,425.53 1,260.11 917.14 Dec '06 Jun '05 Jun '04 Jun '03 Jun '02 18 mths 12 mths 12 mths 12 mths 12 mths Operating Profit 2,161.16 730.34 547.87 478.80 453.85 PBDIT 2,272.23 800.85 619.71 547.28 486.59 Interest 113.23 91.77 114.22 126.62 117.67 PBDT 2,159.00 709.08 505.49 420.66 368.92 Depreciation 326.12 195.41 168.61 171.64 137.82 Other Written Off 1.07 0.94 0.70 1.00 0.76 Profit Before Tax 1,831.81 512.73 336.18 248.02 230.34 Extra-ordinary items 10.17 6.08 47.59 5.81 -6.32 PBT (Post Extra-ord Items) 1,841.98 518.81 383.77 253.83 224.02 Tax 338.73 50.52 46.98 31.74 45.12 Reported Net Profit 1,503.25 468.29 336.79 221.73 186.15 Total Value Addition 3,047.13 1,438.16 1,088.08 952.14 688.15 Preference Dividend 0.00 0.00 0.00 0.00 0.00 Equity Dividend 461.24 189.16 142.07 108.71 93.11 Corporate Dividend Tax 64.69 26.54 18.34 13.93 0.00 Per share data (annualised) Shares in issue (lakhs) 15,168.29 13,518.83 1,794.00 1,553.18 1,551.90 Earning Per Share (Rs) 9.91 3.46 18.77 14.28 11.99 Equity Dividend (%) 165.00 90.00 80.00 70.00 60.00 Book Value (Rs) 23.01 16.11 112.69 104.08 103.39
  • 17. Balance Sheet of Binani ------------------- in Rs. Cr. ------------------- Cement Mar '11 Mar '10 Mar '09 Mar '08 Mar '07 12 mths 12 mths 12 mths 12 mths 12 mths Sources Of Funds Total Share Capital 188.60 203.10 203.10 203.10 203.10 Equity Share Capital 188.60 203.10 203.10 203.10 203.10 Share Application Money 0.00 0.00 0.00 0.00 0.00 Preference Share Capital 0.00 0.00 0.00 0.00 0.00 Reserves 390.42 472.05 273.30 214.54 98.12 Revaluation Reserves 0.00 0.00 0.00 0.00 0.00 Net worth 579.02 675.15 476.40 417.64 301.22 Secured Loans 1,025.44 922.96 740.20 732.33 658.77 Unsecured Loans 210.14 60.14 38.14 38.14 32.23 Total Debt 1,235.58 983.10 778.34 770.47 691.00 Total Liabilities 1,814.60 1,658.25 1,254.74 1,188.11 992.22 Mar '11 Mar '10 Mar '09 Mar '08 Mar '07 12 mths 12 mths 12 mths 12 mths 12 mths Application Of Funds Gross Block 1,897.03 1,800.51 1,588.68 1,445.39 839.99 Less: Accum. Depreciation 641.25 552.82 471.19 397.11 347.03 Net Block 1,255.78 1,247.69 1,117.49 1,048.28 492.96 Capital Work in Progress 122.21 100.01 202.30 171.47 517.37 Investments 546.12 374.57 211.30 46.77 0.00 Inventories 161.84 169.98 212.54 217.44 57.25 Sundry Debtors 0.00 0.00 0.00 0.01 0.24 Cash and Bank Balance 137.28 165.49 70.94 43.28 27.53 Total Current Assets 299.12 335.47 283.48 260.73 85.02 Loans and Advances 291.46 262.09 184.79 188.72 179.43 Fixed Deposits 93.19 143.95 16.27 52.65 20.17 Total CA, Loans & Advances 683.77 741.51 484.54 502.10 284.62 Deffered Credit 0.00 0.00 0.00 0.00 0.00 Current Liabilities 736.62 673.96 691.10 498.21 241.37 Provisions 56.67 131.56 69.80 82.32 61.35 Total CL & Provisions 793.29 805.52 760.90 580.53 302.72 Net Current Assets -109.52 -64.01 -276.36 -78.43 -18.10 Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00 Total Assets 1,814.59 1,658.26 1,254.73 1,188.09 992.23 Contingent Liabilities 462.92 420.75 127.10 392.38 156.98 Book Value (Rs) 30.70 33.24 23.46 20.56 14.83
  • 18. Balance Sheet of Binani ------------------- in Rs. Cr. ------------------- Cement Mar '06 Mar '05 Mar '04 Mar '03 Mar '02 12 mths 12 mths 12 mths 12 mths 12 mths Sources Of Funds Total Share Capital 203.10 217.07 217.07 217.07 422.91 Equity Share Capital 203.10 217.07 217.07 217.07 422.91 Share Application Money 0.00 0.00 0.00 0.00 0.00 Preference Share Capital 0.00 0.00 0.00 0.00 0.00 Reserves 50.04 17.74 3.79 0.33 -138.74 Revaluation Reserves 0.00 0.00 0.00 0.00 0.00 Networth 253.14 234.81 220.86 217.40 284.17 Secured Loans 534.36 487.86 413.56 407.79 367.90 Unsecured Loans 0.00 9.90 1.65 0.00 0.00 Total Debt 534.36 497.76 415.21 407.79 367.90 Total Liabilities 787.50 732.57 636.07 625.19 652.07 Mar '06 Mar '05 Mar '04 Mar '03 Mar '02 12 mths 12 mths 12 mths 12 mths 12 mths Application Of Funds Gross Block 803.95 791.95 767.89 745.56 732.24 Less: Accum. Depreciation 308.07 266.99 228.68 189.70 150.49 Net Block 495.88 524.96 539.21 555.86 581.75 Capital Work in Progress 100.02 5.16 5.06 2.58 1.57 Investments 0.00 23.09 23.25 23.25 23.16 Inventories 33.55 33.60 39.59 40.03 39.86 Sundry Debtors 0.23 0.43 0.78 0.79 2.01 Cash and Bank Balance 15.66 8.81 8.82 14.64 16.49 Total Current Assets 49.44 42.84 49.19 55.46 58.36 Loans and Advances 153.54 222.25 86.18 57.17 70.88 Fixed Deposits 87.10 0.00 0.00 0.00 0.00 Total CA, Loans & Advances 290.08 265.09 135.37 112.63 129.24 Deffered Credit 0.00 0.00 0.00 0.00 0.00 Current Liabilities 78.64 83.48 66.82 69.12 83.65 Provisions 19.83 2.24 0.00 0.00 0.00 Total CL & Provisions 98.47 85.72 66.82 69.12 83.65 Net Current Assets 191.61 179.37 68.55 43.51 45.59 Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00 Total Assets 787.51 732.58 636.07 625.20 652.07 Contingent Liabilities 427.12 3.20 0.00 0.00 0.00 Book Value (Rs) 12.46 10.82 10.17 10.02 6.72
  • 19. Profit & Loss account of ------------------- in Rs. Cr. ------------------- Binani Cement Mar '11 Mar '10 Mar '09 Mar '08 Mar '07 12 mths 12 mths 12 mths 12 mths 12 mths Income Sales Turnover 1,983.67 2,069.10 1,716.78 1,149.98 783.59 Excise Duty 255.17 211.22 220.24 186.94 105.15 Net Sales 1,728.50 1,857.88 1,496.54 963.04 678.44 Other Income 13.73 12.93 -14.39 6.17 -1.31 Stock Adjustments -13.70 -48.87 23.25 56.24 6.53 Total Income 1,728.53 1,821.94 1,505.40 1,025.45 683.66 Expenditure Raw Materials 265.37 252.35 200.14 129.89 91.74 Power & Fuel Cost 512.96 429.85 535.99 235.56 142.03 Employee Cost 41.27 34.35 29.39 25.50 18.78 Other Manufacturing Expenses 76.05 67.57 52.79 32.39 21.29 Selling and Admin Expenses 496.85 403.40 354.47 236.39 165.10 Miscellaneous Expenses 50.83 36.43 22.91 13.21 7.99 Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00 Total Expenses 1,443.33 1,223.95 1,195.69 672.94 446.93 Mar '11 Mar '10 Mar '09 Mar '08 Mar '07 12 mths 12 mths 12 mths 12 mths 12 mths Operating Profit 271.47 585.06 324.10 346.34 238.04 PBDIT 285.20 597.99 309.71 352.51 236.73 Interest 103.44 78.51 71.52 46.47 32.62 PBDT 181.76 519.48 238.19 306.04 204.11 Depreciation 99.50 91.66 80.31 55.67 43.46 Other Written Off 0.00 0.00 0.00 0.00 0.00 Profit Before Tax 82.26 427.82 157.88 250.37 160.65 Extra-ordinary items 11.73 -12.84 0.00 0.00 0.00 PBT (Post Extra-ord Items) 93.99 414.98 157.88 250.37 160.65 Tax 3.22 126.86 45.89 69.02 60.96 Reported Net Profit 90.51 281.92 108.67 175.82 95.61 Total Value Addition 1,177.95 971.60 995.56 543.04 355.19 Preference Dividend 0.00 0.00 0.00 0.00 40.62 Equity Dividend 47.15 71.09 42.65 50.78 0.00 Corporate Dividend Tax 7.65 12.08 7.25 8.63 6.90 Per share data (annualised) Shares in issue (lakhs) 1,886.01 2,031.01 2,031.01 2,031.01 2,031.01 Earnings Per Share (Rs) 4.80 13.88 5.35 8.66 2.71 Equity Dividend (%) 25.00 35.00 21.00 25.00 0.00 Book Value (Rs) 30.70 33.24 23.46 20.56 14.83
  • 20. Profit & Loss account of ------------------- in Rs. Cr. ------------------- Binani Cement Mar '06 Mar '05 Mar '04 Mar '03 Mar '02 12 mths 12 mths 12 mths 12 mths 12 mths Income Sales Turnover 584.65 529.74 462.68 441.08 433.60 Excise Duty 94.37 90.94 87.69 74.81 67.34 Net Sales 490.28 438.80 374.99 366.27 366.26 Other Income 0.85 -4.38 4.12 3.06 2.84 Stock Adjustments -3.60 -6.37 0.00 0.00 0.00 Total Income 487.53 428.05 379.11 369.33 369.10 Expenditure Raw Materials 72.20 64.39 46.84 45.20 35.43 Power & Fuel Cost 137.49 127.89 0.00 0.00 0.00 Employee Cost 15.09 13.56 13.19 12.24 10.93 Other Manufacturing Expenses 20.97 19.02 119.30 119.49 116.51 Selling and Admin Expenses 94.65 86.60 0.00 0.00 0.00 Miscellaneous Expenses 8.65 9.78 98.00 94.44 98.91 Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00 Total Expenses 349.05 321.24 277.33 271.37 261.78 Mar '06 Mar '05 Mar '04 Mar '03 Mar '02 12 mths 12 mths 12 mths 12 mths 12 mths Operating Profit 137.63 111.19 97.66 94.90 104.48 PBDIT 138.48 106.81 101.78 97.96 107.32 Interest 34.17 52.35 56.02 56.34 61.73 PBDT 104.31 54.46 45.76 41.62 45.59 Depreciation 42.91 42.00 41.28 40.59 39.48 Other Written Off 0.00 0.00 0.00 0.00 0.00 Profit Before Tax 61.40 12.46 4.48 1.03 6.11 Extra-ordinary items 0.00 0.00 -0.67 -0.80 -1.03 PBT (Post Extra-ord Items) 61.40 12.46 3.81 0.23 5.08 Tax 5.12 0.55 0.34 0.00 0.00 Reported Net Profit 52.96 6.45 4.13 1.03 6.13 Total Value Addition 276.84 256.85 230.49 226.17 226.35 Preference Dividend 10.06 0.00 0.00 0.00 0.00 Equity Dividend 0.00 0.00 0.00 0.00 0.00 Corporate Dividend Tax 1.41 0.00 0.00 0.00 0.00 Per share data (annualised) Shares in issue (lakhs) 2,031.01 2,170.68 2,170.70 2,170.70 4,229.10 Earning Per Share (Rs) 2.11 0.30 0.19 0.05 0.14 Equity Dividend (%) 0.00 0.00 0.00 0.00 0.00 Book Value (Rs) 12.46 10.82 10.17 10.02 6.72
  • 21. BIBLIOGRAPHY  Books I. M. Pandey, Financial Management, Vikas Publishing Pvt, Ltd, and (9th Edition).  Websites http://dipp.nic.in/English/Performance_Cement_Industry http://www.slideshare.net/shonethattil/indian-cement-industry- report http://newsletters.cii.in/newsletters/mailer/trade_talk/pdf/Cement% 20Industry%20in%20India-%20Trade%20Perspectives http://www.nseindia.com/content/ncfm/EDBM_workbook.pdf www.ambujacement.com http://www.binaniindustries.com/group-companies/binani- industries/profile.asp http://www.scribd.com/doc/19102170/A-case-study-on-Ambuja- Cement  Other Materials  Annual report of the company  Balance Sheet