Sinhgad Business school

In Partial Fulfilment of Requirements

For the Award of Degree of
POST GRADUATE DEPLOMA IN MANAGEMENT
DECLARATION

D E C LARAT I O N

I, the undersigned, hereby declare that the Project Report entitled “Financial
Statement Analysis of ZUARI CEMENTS Ltd. ” written and submitted by
me to the University of Pune, Pune in partial fulfilment of the requirements for
the award of degree of Master of Business Administration under the guidance
of Mr. Manoj Kumar Sahoo (Deputy Manager Finance)and Mr. Vishnu
Murthy (Manager Finance) is my original work and the conclusions drawn
therein are based on the material collected by myself.

Place : Pune Brijesh kumar verma

Date: 20-jul-2008 Research
Student

Page
1 of 88
 GUIDE’S CERTIFICATE

C E RT I F I CAT E

This is to certify that the Project Report entitled “ FINANCE STATEMENT-

ANALYSIS” which is being submitted herewith for the award of the degree of
Master of Business Administration of University of Pune, Pune is the result of
the original research work completed by Mr BRIJESH KUMAR VERMA
under my supervision and guidance and to the best of my knowledge and
belief the work embodied in this Project Report has not formed earlier the
basis for the award of any degree or similar title of this or any other University
or examining body.

Place :SITAPURAM (Name of the Guide)

(Donda padu) Mr. Manoj kr. Sahoo
Date: 20-Jul-2008 Research Student
Brijesh kr. verma

Page
2 of 88
 CONTENT PAGE

CONTENTS

Page No

ACKNOWLEDGMENT 1-2

LIST OF TABLES 4

LIST OF FIGURES 5

CHAPTER I: Introduction 6-19

CHAPTER II: Profile of the organization 20-35

CHAPTER III: Research Design and Methodology 36-39

CHAPTER IV: Data Presentation, Analysis and 40-82

interpretation

CHAPTER V: Recommendations 83-84

BIBLIOGRAPHY: 85-86

ANNEXURE: 87-100

Page
3 of 88
 LIST OF TABLES

LIST OF TABLES
Table No. Title of the Table Page
No.
Table No. 1.1 Cement statistics 30
Table No. 1.2 Regional distribution of cement in 2006 35
Table No. 1.3 Region wise share of consumption 35
Table No. 1.4 Profit before tax 47
Table No. 1.5 Profit after tax 48
Table No. 1.6 Turnover 49
Table No. 1.7 Current ratio 55
Table No. 1.8 Quick ratio 57
Table No. 1.9 Debt equity ratio 59
Table No. 1.10 Proprietary ratio 60
Table No. 1.11 Debt to total assets ratio 61
Table No. 1.12 Interest coverage ratio 62
Table No. 1.13 Stock turnover ratio 63
Table No. 1.14 Inventory holding period 64
Table No. 1.15 Debtor turnover ratio 65
Table No. 1.16 Debtor collection period 66
Table No. 1.17 Working capital turnover ratio 67
Table No. 1.18 Total assets turnover ratio 68
Table No. 1.19 Fixed assets turnover ratio 69
Table No. 1.20 Cash ratio 70
Table No. 1.21 Net profit ratio 71
Table No. 1.22 Gross profit ratio 72
Table No. 1.23 Return on capital employed 74
Table No. 1.24 Return on equity share holder fund 75
Table No. 1.25 Return on total assets 76
Table No. 1.26 Reserve to total capital ratio 77
Table No. 1.27 Debt ratio 78
Table No. 1.28 Capitalization ratio 79
Table No. 1.29 Internal growth ratio 80
Table No. 1.30 Sustainable growth ratio 81

Page
4 of 88
 LIST OF & CHARTS

LIST OF CHARTS
Chart No. Title of the Chart Page No.
Chart No. 2.1 Indian presence of Zuari cement 23
Chart No. 2.2 Market network of Zuari cement 28
Chart No. 2.3 India’s cements scenario 31
Chart No. 2.4 GDP at cost of factor 32
Chart No. 2.5 Growth of the sector 33
Chart No. 2.6 Expected growth 34
Chart No. 2.7 Trend of sales and net income of ZCL 44
Chart No. 2.8 Trend of profit before tax of ZCL 45
Chart No. 2.9 Trend of profit after tax of ZCL 46
Chart No. 2.10 Profit before tax 47
Chart No. 2.11 Profit after tax 48
Chart No. 2.12 Turnover 49

Page
5 of 88
 INTRODUCTION

Page
6 of 88
 INTRODUCTION

Financial analysis is the process of identifying the financial strengths and

weaknesses of the firm by property establishing relationships between the item
of the balance sheet and the profit and loss account. There are many users of a
company’s financial statement like Trade creditors, lender, Investor and
management. They analyse the financial statement according to their need.

The first task of the financial analyst is to select the relevant information to the
decision under consideration from the total information contained in financial
statement. The second step is to arrange the information in a way to highlight
significant relationship. The final step is to interpretation and drawing of
inferences and conclusions.

In brief, financial analysis is the process of selection, relation and evaluation.

The financial statement provides a summarised view of financial position and

operation of a firm. Therefore, much can be learnt about a firm from a careful
study of its financial statements. The analysis of financial statements is an
important aid to financial analysis. The analysis of financial statements is a
process of evaluating the relationship between component pats of financial
statements to obtain a better understanding of the firm’s position and
performance.

The traditional financial statements comprising the balance sheet and profit
and loss account is that they do not give all the information related to the
financial operation of a firm. Nevertheless, they provide some extremely
useful information to the extent that the balance sheet mirrors the financial
position on a particulars date in terms of the structure of assets, liabilities and
owner’s equity, and so on profit and loss account show the result of operations
during a certain period of time in terms of the revenue obtained and the cost
incurred during the year.

Financial statements are the main and often the only source of information to
the lenders and the outside investors regarding a business’s financial
performance and condition. In addition to reading through the financial
statements, they use certain ratios calculated from the figures in the financial
Statement to evaluate the profit performance and financial position of the
business. These key ratios are very important to managers as well, to say the
least. The ratios are part of the language of business. It would be embarrassing
to a manager to display his or her ignorance of any of these financial
specifications for a business.

Page
7 of 88
 FINANCIAL STATEMENT ANALYSIS

A Financial statements paint a picture of the transactions that flow through a

business. Each transaction or exchange - for example, the sale of a product or the
use of a rented a building block - contributes to the whole picture. Let's approach
the financial statements by following a flow of cash-based transactions. In the
illustration below, we have numbered four major steps:

http://www.investopedia.com/university/financialstatements/default.asp

Page
8 of 88
 Financial statement is an organised collection of data. Its purpose is to convey
an understanding of various financial aspects of business firm. It may show a
position at a moment as in the case of activities over a given period of time in
the of an income statements.

The firm’s financial statement includes.

• Balance sheet

• Income statement

• Statement of cash flow

• Statement of retain earning

Balance sheet:

The balance sheet summarizes assets & liabilities owned by a firm – value of
assets and mix of financing debt & equity to finance these assets up to a point
of time. It some time, called “Statement of financial position” or “A statement
of financial position of an enterprise as on a particular date.

In theory the balance sheet of a private limited company or a public limited

company should be able to tell us all about the company’s financial structure,
and liquidity, the extent to which its assets and liabilities are held in cash or in
a near cash form (for example, bank accounts and deposits).

It should also tell us about the assets held by the company, the proportion of
current assets and the extent to which they may be used to meet current
obligations. An element of caution should be noted in analyzing balance sheet
information. The balance sheet is an historical document. It may have looked
entirely different six months or a year ago, or even one week ago. There is not
always consistency between the information included in one company’s
balance sheet with that.

Page
9 of 88
 Balance Sheet Terminology

• Fixed Assets – Assets held for more than one year. Typically Include:

• Machinery and equipment

• Buildings
• Land

• Other Assets – Assets that are not current assets or fixed assets

• Patents
• Copyrights
• Goodwill

• Current assets typically include:

• Cash
• Accounts Receivable
(Payments due from customers who buy on credit)
• Inventory
(Raw materials, work in process, and finished goods held for
eventual sale)
• Other expenses
(Prepaid expenses are those items paid for in advance)

• Debt (Liabilities)

• Money that has been borrowed and must be repaid at some

predetermined date
• Debt Capital

• financing provided by a creditor

• Current or short-term debt and long-term debt
• Current or short-term must be repaid within the next 12
months

• Current Liabilities:

• Accounts payable

• Credit extended by suppliers to a firm when it purchases

inventories

Page
10 of 88
 • Accrued expenses

• Short term liabilities incurred in the firm’s operations but

not yet paid for

• Short-term notes

• Borrowings from a bank or lending institution due and

payable within 12 months

• Long-Term Debt

• Loans from banks or other institutions for longer than 12 months

• Equity

• Includes the shareholder’s investment

• Preferred stock
• Common stock

• Treasury Stock

• stock that was once outstanding and has been re-purchased by the
company

• Retained Earnings

• cumulative total of all the net income over the life of the firm, less
common stock dividends that have been paid out over the years

Page
11 of 88
 INCOME STATEMENT

Income Statement provides information regarding revenues and expenses of

the firm and resulting profit or loss during a particular period. This statement
is extremely useful to the end uses of business operations. While the balance
represents the financial status of an enterprises at a particular point of time, the
income statement summaries the results of operations for the given accounting
period.

Income Statement Terminology

• Revenue (Sales)

• Money derived from selling the company’s product or service

• Cost of Goods Sold (COGS)

• The cost of producing or acquiring the goods or services to be sold

• Operating Expenses

• Expenses related to marketing and distributing the product or

service and administering the business

• Financing Costs

• The interest paid to creditors and the dividends paid to preferred

stockholders

• Tax Expenses

• Amount of taxes owed, based upon taxable income

Page
12 of 88
 STATEMENT OF CASH FLOW

The statement of cash flows may be the most intuitive of all statements.
We have already shown that, in basic terms, a company raises capital in order to
buy assets that generate a profit. The statement of cash flows "follows the cash"
according to these three core activities:

(1) Cash is raised from the capital suppliers - cash flow from financing,

(2) Cash is used to buy assets - cash flow from investing and

(3) Cash is used to create a profit - cash flow from operations.

However, for better or worse, the technical classifications of some cash flows
are not intuitive. Below we recast the "natural" order of cash flows into their
technical classifications:

Page
13 of 88
http://www.investopedia.com/university/financialstatements/default.asp

REASONS FOR ANALYSIS

• INVESTMENT DECISIONS

• CREDIT DECISIONS

• PERFORMANCE

• VALUATION (INVESTMENT)

• LEGAL LIABILITY AMOUNT (CREDIT & PERF.)

• GOING CONCERN DECISIONS (CREDIT & PERF.)

• UNREASONABLE RETURNS (PERFORMANCE)

Tools of Financial Analysis:

Page
14 of 88
 A financial analysis can adopt the following tools for analysis of the
financial statements. These are also found as methods of financial analysis.

• Comparative Financial Statements

• Common size Financial Statements
• Trend Percentages
• Fund Flow Analysis
• Ratio Analysis

• Comparative Financial Statements :

Comparative Financial Statements refer to statements of financial

position of business. Which are prepared in such a way so as to provide a
time perspective to various elements embodied in such statement, these
statements mainly include two types of analytical statements, Viz.
“Comparative Balance Sheet, Income Statements”.

Comparative statements mainly show the following information for

analytical purpose.

o Actual data in absolute money values as given in the financial statements

for the under consideration.

o Increases and decreases in various items in money values.

o Increases or decreases in various items of percentages.

Comparative financial statements facilitate easy comparison by presenting
relevant figures for two or more period of each firm side by side.

Page
15 of 88
 • Common size Financial Statements :

The main limitation of comparative financial statements is that they

failed to show the changes that have taken place from year to year in
relation to the total assets, total liabilities and capital or total net sales. This
information is eliminated by common size analysis. Common size
financial statements are those statements in which items reported in the
financial statements are converted into percentages taking some common
base. In the common size income statements the net sales is assumed to be
100% and other items are expressed as percentages of sale.

Similarly in the common size balance sheet, the total assets or total
liabilities are assumed to be 100% and other items are expressed as a
percentage of this total.

“Common size” statements are also called component percentages or

100% statement. Because each statement is reduced to the total of 100 and
each individual item is expressed as a percentage of this total.

• Trend percentages :

Comparative the past data over period with a base year is called trend
analysis. Under this method, percentage relationship that each statement
item bears to the same items in the base year is calculated. Any year –the
earliest year involved in comparison, or the latest year or any intervening
year – may be taken as the base year. The trend percentages are calculated
only for some important items, which can be logically connected with each
other. The concerned item in the base year is taken to be equal to as 100
and then based on this trend percentages for the corresponding items in
other year are calculated.

This method is horizontal type analysis of financial statements. The

trend ratio is shown in comparative financial statements. Trend analysis is
useful tool for the management since it reduces the large amount of
absolute data into a simple and easily readable form.

Page
16 of 88
 • Funds Flow Analysis :

Another significant technique of financial analysis is fund flow

statement designed to highlight changes in the financial position of
business concerned between two points of time, which generally
confirmed the beginning and ending of the dates of the financial
statements, for whatever period of examination is relevant.

The significant funds flow statements, referred to as the statement of

changes in the financial position or statement of process and uses of funds
drawing on the information contained in the basic financial statements
show the sources of funds and application of funds during the period.
Funds flow analysis provides an structure of assets liabilities and owner’s
equity.

The funds flow statement is a method by which we study the net funds
flow between two points in time. These positions confirm the beginning
and ending of the dates of financial statements, for whatever period of
examination.

• Ratio Analysis:

Ratio analysis is a powerful tool and widely used to financial analysis,

which is process of identifying the financial strength and weakness of the
firm by properly establishing relationships between the items of balance
sheet and profit and loss account. It can be used to compare the risk and
return relationships of firm of different size.

The term ratio refers to the numerical or quantitative relationship

between two items/variables. This relationship can be expressed as
percentages, fraction and proportion of numbers. These alternative method
of expressing items which are related to each other are, for purpose of
financial analysis, referred to as ratio analysis.

Nature and significance of ratio analysis:

Ratio analysis is a technique of analysis and interpretation of financial

statements. It is the process of establishing and interpreting various ratios for

Page
17 of 88
 helping in making certain decisions. However, ratio analysis is not an end in
itself. It is only a means of better understanding if financial strengths and
weakness of a firm. Calculation of more ratios does not serve any purpose,
unless several appropriate ratios are analyzed and interpreted.

There are a number of ratios which can be calculated from the information
given in the financial statements, but the analysis has to select same keeping in
mind the objective of analysis.

Need For Ratio Analysis:

The need for ratio analysis arises due to following facts:

Business facts shown in financial statements do not carry any importance

individuality. Their importance lies in the facts that they are inter related.
Hence there is need for establishing relationship between various but related
items.

Ratio analysis as a tool for the interpretation of financial statements is

significant because ratio help the analysts to have a deep into the data given in
statements figures in their absolute forms shown in financial statements are
neither significant nor comparable. So, ratio provides power to speak.

The objectives of study:

1. To know the financial position of the ZCL.

2. To find out true and fair view of the business.

3. To find out various assets mix and the capability of the business to meet its
long-term & short-term liabilities.

4. To study about working environment, planning & strategies, business

policy, various methods & technologies for better output & optimum
utilization of resources.

5. To understand the management of human assets, finance, marketing &

production for achieving the desired goals.

6. To have in depth study regarding Analysis of the financial statement of

ZUARI CEMENT LIMITED.

Page
18 of 88
 PARTIES INTERESTED IN RATIO ANALYSIS:

Ratio analysis serves the purpose of various parties interested in

financial statements. Primarily the object of ratio analysis and interpreting the
financial statements is to get adequate information useful for the performance
of various function like planning, coordinating, controlling, communication
and forecasting etc., the interested parties are:

1. Share holder/investors:

Investor in the company will like to assess the financial position of the
concern where he is going to invest. His first would be security of his
investment and then a return in the form of dividend or interest. So,
investors concentrate on the firm’s financial structure to the extent in
influences the firm’s earning ability and risk.

2. Trade creditors:

They are interested in firm’s ability to meet their claims over a very
short period of time. So their analysis is confined to evaluation of firm’s
liquidity position.

3. The long-term creditors:

They are concerned with the firm’s long-term future solvency and
survival. They analyze the firm’s profitability over a period of time, its
ability to generate cash, to be able to pay interest and repay the principle
and relationship between various sources of funds.

4. Employees:

The employees are interested in financial position of the concern

especially profitability. Their wages and amount of fringe benefits are
related to the volume of profits earned by the concern. The employees
make use of information available in financial statements.

Page
19 of 88
 5. Government:

Government is interested to know the overall strength of industry.

Various financial statements published by industrial units are used to
calculate ratios for determining short-term, long-term and overall
financial position of the concern. Government may base its future
policies on the basis of industrial information available from various
units.

6. Management:

Management of the firm require these statements for its own evaluation
and decision making. Moreover, it is responsible for the overall
performances of the firm maintaining its solvency so as to able to meet
short-term and long-term obligations to the creditors and at the same
time ensuring an adequate rate of return, consistent with safety of funds
to its owner. Financial analysis may not provide exact answer to these
questions but it will indicate what can be expresses future.

Page
20 of 88
 COMPANY PROFILE

COMPANY PROFILE

Zuari Cement Limited earlier known as Sri Vishnu Cement Ltd, is an

ISO 9002 company incorporated in 1984 with a mission to provide
comfortable houses at affordable price. It is a public limited company with a
paid-share capital of Rs.23.23 crores. It is one of the italcementi group
company, governed by the board of directors headed by the chairman Mr.
SAROJ KUMAR PODDAR.

Zuari cement is now fully owned by the italcementi group, the 4th
largest cement producer in the world and the biggest in the Mediterranean
region. With net sales of five billion Euros in 2005 and a capacity of 70
million tones, Italicementi has a strong presence in over 19 countries. Now in
India, with is inherent strengths, Italcementi is all set to give the building
industry, cement that’s truly international.

Italicementi believes in customer satisfaction through continuous

quality improvement. This belief reflects in the group’s Quality Management

Page
21 of 88
 System that complies with ISO 9001: 2000 standards. This system covers all
the processes. Across all the group companies, to ensure that the end product
delivered to customers is nothing short of world class.

FUTURE PLAN OF ZUARI CEMENT LIMITED

• The company plans to upgrade its clinker production from 2700 tpd to
3400 tpd.

Indian Presence

Page
22 of 88
 Italcementi invested USD120m since 2001 to acquire 2 plants with 3,2 mt
capacity and a 7%a)- 8%b) share of the South India market...

Italcementi plants in South India

January 2001: acquisition of 50% of

Zuari Cement (Yerraguntla) Sitapuram
Capacity 1.950 kt
Net Sales 2005: USD82,6m

Yerraguntla

January 2002: acquisition (through

Zuari Cement) of Sri Vishnu
Cement (Sitapuram)
Capacity 1.250 kt
Net Sales 2005: USD39,5m

a) on total market
b) on CMA market

Chart no. 2.1

SOURCE: ITALCEMENTI ppt.

Page
23 of 88
 VISION OF ZUARI CEMENT

Main aim of zuari cement to further develop its presence in the country…

 It has taken time to fully assimilate the complexities of operating in the

country (challenging cement market, strong price pressure, changing fiscal
environment)

 The high expertise of local human resources allows today to maintain only
one expatriate as General Manager in the organization, and various plans
are underway to capitalize Group wide on Indian resources

 Several important industrial investments are underway:

- 40 MW steam coal power plant
- second clinker line in Yerraguntla
- grinding centre in Chennai

 The Group is continuously seeking opportunities for further growth in the

Country through acquisitions

Page
24 of 88
 MARKET NETWORK OF ZUARI CEMENT LIMITED

Chart no. 2.2

Source: www.Zuaricement.com

Page
25 of 88
 INDIAN CEMENT INDUSTRY CURRENT SCENARIO

The Indian cement industry is the second largest producer of quality

cement, which meets global standards. The cement industry comprises 130
large cement plants and more than 300 mini cement plants.The industry's
capacity at the end of the year reached 188.97 million tonnes which was
166.73 million tonnes at the end of the year 2006-07. Cement production
during April to March 2007-08 was 168.31 million tonnes as compared to
155.66 million tonnes during the same period for the year 2006-07.Despatches
were 167.67 million tonnes during April to March 2007-08 whereas 155.26
during the same period. During April-March 2007-08, cement export was 3.65
million tonnes as compared to 5.89 during the same period.

Technological Advancements

Modernization and technology up-gradation is a continuous process for

any growing industry and is equally true for the cement industry. At present,
the quality of cement and building materials produced in India meets
international standards and benchmarks and can compete in international
markets. The productivity parameters are now nearing the theoretical bests and
alternate means. Substantial technological improvements have been brought
about and today, the industry can legitimately be proud of its state-of-the-art
technology and processes incorporated in most of its cement plants. This
technology up gradation is resulting in increased capacity, reduction in cost of
production of cement.

Page
26 of 88
 Future Outlook

Considering an expected production and consumption growth of 9 to 10 per

cent, the demand-supply position of the cement industry is expected to improve
from 2008-09 onwards, resulting in an expected price stabilization. The cement
industry is poised to add 111 million tones of annual capacity by the end of 2009-
10 (FY 10), riding on the back of an estimated 141 outstanding cement projects.

Major Players

The major players in the cement sector are :

• Ultratech Cement
• Century Cements
• Madras Cements
• ACC
• Gujarat Ambuja Cement Limited
• Grasim Industries
• India Cements Limited
• Jaiprakash Associates and
• JK Cements.
• Holcim
• Lafarge
• Heidelberg Cemex
• Italcementi

Cement Statistics

(million tonnes)
2006-07 2007-2008
(Apr-Mar)
(a) Production 155.66 168.31
Despatches
(b) 155.26 167.67
(Including Export)
(c) Export 3.65 5.89
(d) Cap. Uti.(%) 96 94
Table
no.1.1

Source: Cement Manufacturers’ Association

Page
27 of 88
 Policy Initiatives

FDI Policy: the cement sector has been gradually liberalized. 100 per cent FDI is
now permitted in the cement industry.

http://www.indiainbusiness.nic.in/industry-infrastructure/industrial-sectors/Cement.htm

INDIA’ CEMENT SCENARIO

India is the second largest national cement market worldwide, driven by an

emerging economy and a buoyant population …

Population: 1.080 m
Pop. CAGR '99-'04: 1,5%
GDP per head: 610 US $
GDPa) CAGR ’99 - ’04: 5,7 %
b)
GFI CAGR ’99 - ’04: 6,9 %

Cement sector ‘04:

Companies: 55
c)
Plants : 127
c)
Production Capacity (mt): 146

Cement Consumption:
million tons: 119,4c)
Kg/inhab:
110

a) Gross Domestic Product

b) Gross Fixed Investment
c) CMA plants with production capacity > 200 kt, 2005
est. 131 mt

Chart no. 2.3

Source: macroeconomic data, EIU January ’05 cement data, Cement Manufacturers Ass.

Page
28 of 88
With a construction sector showing solid growth, overcome in recent years only
by the growth of Services...

 Construction sector accounts today for 5% of Indian GDP

 Strong growth in recent years driven by non-residential (incentives to FDI)
 Increasing weight of residential (easier access to financial credit, strong
development of major cities)

GDP at cost of factors by origin (index 1993-94=100)

Grafico 6 - Pil al costo dei fattori per industria di
origine (numero indice 1993-94=100)

220 Agricolture
Construction
Agricoltura
Costruzioni
190
Industry
Industria
Servizi
Services
PIL
160

130

100
1993-94 1996-97 1999-00 2002-03
Fonte: Ministry of Statistics

Chart no. 2.4

Source: Ministry of Statistics

Page
29 of 88
...and is expected to further grow due to high development rates and
infrastructure programs...

Legenda
Stato avanzamento lavori al 30 novembre 2005
Golden qua drilater*:

NS & EW corridor:
Lavori completati
Lavori in corso
Progetti da assegnare
* Completato al 90%.
Fonte: Governo indiano
Infrastructures development
supported by private/public
partnerships:
National Highway Development
Plana)
National Marine Development
Programb)
Airports development c)
Relaunch of railways d)

Creation of 52 thousands km of new highways and modernisation of secondary roads

Modernisation of 180 Indian ports
New airports (Hyderbad, Bangalore) and modernisation of existing (New Delhi, Bombay)
New 9 thousand km railway corridor

Chart no. 2.5

Page
30 of 88
... with a positive impact on cement demand growth in the
medium and long term
India cement demand, mt/year

200 Period CAGR

%

180 1973 - 83 6.7

1983 - 93 7.2 Long term
1993 - 03 7.6 expected growth
160 CAGR 5,5%

140

120

100

80

60

40

20

0
72

76

78

82

88

92

94

98

04

08

10
70

74

80

84

86

90

96

00

02

06

12
19

19

19

19

19

19

19

19

19

19

19

19

19

20

20

20

20

20

20
19

19

20
Actual data Structural Curve

Chart no. 2.6

SOURCE: ITALCEMENTI GROUP

CEMENT INDUSTRY IN ANDHRA PRADESH:

Andhra Pradesh, a south Indian state has a huge reserve of limestone and
these are being exploited by major plants and mini plants. Limestone the prime
raw material for cement industry is available inexhaustible quantities in Andhra
Pradesh. Raw materials required for cement manufacturing are coal, bauxite;
gypsum and fly ash are available in Andhra Pradesh. One fourth of the cement
grade reserves of the country are from Andhra Pradesh.

Coming to the production of cement, Madhya Pradesh is the largest cement

producing state in India next stands Andhra Pradesh, which is 18% of total
country production.

Page
31 of 88
REGION WISE CAPACITY, PRODUCTION AND CONSUMPTION:

Regional distribution in 2006

Capacity Production
Million Share of Million
Share of Total
Tonne Total Tonne
North 29.59 18.8 30.17 21.3
East 22.85 14.5 19.54 13.8
South 50.76 32.3 44.88 31.7
West 28.94 18.4 24.93 17.6
Central 25.0 15.9 22.28 15.7

Source: Industry report

Table no.1.2

In terms of regional concentration, the Southern region accounts for 32 per

cent of installed capacity, followed by Western region. MP is traditionally
considered a part of the Western region although as much as 65 per cent of
cement output from this state serves the Northern and Eastern regions.

Region wise share of consumption (in %)

Region/Zone 2005 2006

South 30 26
East 17 17
North 19 20
Central 16 17
West 18 20
Total 100 200

Source: KR Choksey report

Table no.1.3

http://www.indiabiznews.com/biznews/categoryNewsDesc.jsp?catId=11648Cement Industry – 1

Page
32 of 88
 RESEARCH METHODOLOGY

Page
33 of 88
 RESEARCH METHODOLOGY
Research In Common Parlance Refers To Search For Knowledge. Data had been
collected by primary and secondary methods. Research Methodology is a way to
systematically solve the research problem. It may be understood as a science of
studying how research is done scientifically. The study of research methodology
gives the student the necessary training in gathering material and arranging them.
According to Hudson Maxim, “All progress is born of inquiry. Doubt is often
better than overconfidence, for it leads to inquiry, and inquiry leads to invention”.
Research is an academic activity and as such the term should be used in technical
sense. Research is, thus an original contribution to the existing stock of knowledge
making for its advancement.

DATA COLLECTION

The task of data collection begins after a research problem has been defined and
research design/ plan chalked out. While deciding about the method of data
collection to be used for the study, the researcher should keep in mind two types
of data.

• Secondary data

My study is based on secondary data.

Collection of secondary data

These are those data which have been already collected by someone else
and which have already been passed through the statistical process. When the
researcher utilizes secondary data, then he has to look into various sources from
where they can obtain them. Secondary data may either be published data or
unpublished data.

Published data are available in: -

a) Various publications of the central, state and local govt.

b) Books magazines and newspapers
c) Reports and publications of various associations connected with Business
and industry, banks, stock exchanges.

Page
34 of 88
d) Reports prepared by research scholars, universities, economist etc, in
different fields.

Unpublished data are available from: -

Dairies, letters, unpublished biographies and autobiographies and also may be

available with scholars and research workers, trade associations, labour bureaus
and other public/ private individuals and organizations.

• Here Secondary data was collected through: -

• Annual reports and

• Website of ZCL

• Secondary data was collected through annual report 2002 to 2006

Consider.

SWOT ANALYSIS:-

STRENGTH:-

• Largest manufacturer of Portland cement in southern region.

• Large availability of resources like lime stone, power etc.

• Technology enhancement

WEAKNESS:-

• Marginal profits.

• Continues Stability in price.

• Increasing trend in price of major raw material like power and machinery.

OPPORTUNITIES:-

• Introduction of new market of both export & domestic.

Page
35 of 88
 • Establish new plant in other region.

• Continues focus in cost reduction.

• Focus on process establishment ‘system’ by using 6 sigma methodologies.

THREATS:-

• Limited market.

• Huge competition.

• No subsidies from government.

Page
36 of 88
 DATA PRESENTATION, ANALYSIS
AND INTERPRETATION

Page
37 of 88
 Comparative Financial Statements Analysis

• Zuari cement had a very little profit in 2002 due to not proper utilization of
fixed cost.

• It faced 3 year continuously losses in which in 2003 it had a very huge

loss due to increase in expenditure against decrease in sales.

• In 2003 it increased its reserve to Rs. 1558.2 lacs, when ZCL had takeover
the Sri Vishnu Cement.

• From 2004 it started optimum utilisation of its fixed cost and resultant got
less loss in 2004 & 2005 as compare to 2003.

• From 2004 it enhanced its marketing strategies and marketing network, by

which its sales increased 10% in 2004, 25% in 2005 and 47% in 2006.

• In 2003 reserve was increased but this reserve had not been used in the
following year 2003, 04, 05 and 2006 in the fixed assets.

• In 2003 ZCL had 50% less sundry debtor as compare to 2002 which
increased bad debt for the company. But it again increased 50% in 2004 as
compare to 2003 it resultant decreased in bad debt. The debtor decreased
35% in 2006as compare to 2005.

• In 2005 manufacturing expenses increased 30.32% while sales increased

only 24.53% but loss reduced due to decrease in shot-term and long-term
expenses.

• In 2006 ZCL maintained its finished goods stock that is -72%, which is the
main reason of maximizing its profit.

Page
38 of 88
See annexure no.3.1

COMMON SIZE FINANCIAL STATEMENTS

• Annexure no.3.2 shows the percentage figures that bring out clearly the
relative significance of each group of items in the aggregative position of
the firm for the following year that are as follows.

• In the 2003 the ZCL had loss. This declining can mainly be traced to the
increase of 96.74% in the manufacturing expenses reflecting diminishing
in efficiency of manufacturing operations. The increase in financial
overheads (Interest) by .19% during the 2003 can be traced to the
repayment of a part of long-term loans.

• In the 2003 the common size balance sheet show that current assets as a
percentages of total assets have decreased by 17 percent over previous
year. This decrease was shared by debtors 12% and inventory 5%; the
share of cash & bank balance and loan comparatively remained unchanged
at 11%. Fixed assets also decrease as a percentage of total assets by 12%
over the previous year. This decrease was shares by gross block 11%.

• The proportion of current liabilities (mainly due to creditors) was also

lower at 16.69% in the 2003 compared to 30.67% in the previous year.
These facts signal overall increase in the liquidity position of the firm.
Further the share of long term debt has also declined and owner’s equity
has gone up from 50.27% in the previous year to 31.46% in the 2003.

• In the 2004 the ZCL had improved its loss that is -5.97%in 2004 as
compared to -10.59% in the 2003. This development can mainly be traced
to the decrease manufacturing expenses 91.90%in 2004 as compare to
96.74% in the 2003 reflecting improvement in efficiency of manufacturing
operations. The decrease in financial overheads (Interest) by 1.59% during
the 2004 can be traced to the repayment of a part of long-term loans.

Page
39 of 88
 • In the 2004 the common size balance sheet show that current assets as a
percentages of total assets have increase by 3% over previous year. This
increase was shared by debtors 3%; the share of cash & bank balance and
loan comparatively slightly changed. Fixed assets also decrease as a
percentage of total assets by 7% over the previous year. This decrease was
shares by gross block 14%.

• The proportion of current liabilities (mainly due to creditors) was also

lower at 15.60% in the 2004 compared to 16.69% in the previous year.
These facts signal overall increase in the liquidity position of the firm.
Further the share of long term debt has also raise and owner’s equity has
gone down from 44.58% in the 2004 as compare to 50.27% in the 2003.

See annexure no. 3.2

• In the 2006 the EAT of ZCL improved that was 5.38%in 2006 as compared
to -2.71% in the 2005. This development can mainly be traced to the
decrease manufacturing expenses 90.42%in 2006 as compare to 96.28% in
the 2005 reflecting improvement in efficiency of manufacturing
operations.

• In the 2006 the common size balance sheet show that current assets
increase as a percentages of total assets by 19.18% over previous year.
This increase was shared by decrease in debtors by 6.36%; the share of
cash & bank balance and loan comparatively increased by 24.89% as
compare to previous year and some slightly changed in inventory. Fixed
assets also decrease as a percentage of total assets by 4.61% over the
previous year. This decrease was shares by gross block 3.96%.

• In 2006 an investment was made of Rs.102 lacs because unsecured load

was 25% more than the previous year. Further the share of loan funds has
also raise and owner’s equity has gone down from 44.91% in the 2006 as
compare to 46.93% in the 2005.

See annexure no. 3.2

Page
40 of 88
TREND PERCENTAGES

Trend analysis is a form of comparative analysis, but instead of examining the

entire balance sheet and income statement for two years, this form of analysis
involves examination of selected financial statement information over longer
period of time(usually at least 5 year and much as 10-20 years).

See annexure no. 3.3

Trend of sales and net income of zuari cement limited for the
year2002-03-04-05-06

Page
41 of 88
 250

200

150 SALES (% )
100 NET INCOME (% )

50

0
2002 2003 2004 2005 2006
SALES (% ) 100 97.77 107.5 133.9 197.3
NET 100 97.77 106.8 132.9 196.1
INCOME (% )

Chart no. 2.7

We can see that Zuari’Net income and sales slightly decreased in the year of 2003
but it increased steadily over the 5-year period. The 2006 net income is almost
two times as much as the 2002 amount. This is kind of performance that
management and stockholder seek.

Trend of Profit & loss before tax of Zuari cement limited for the
year 2002-03-04-05-06

Page
42 of 88
 4000

2000

Profit & loss Before

-2000 Tax(% )

-4000
2002 2003 2004 2005 2006
Profit & loss 100 -3385 -1029 -1299 3969
Before
Tax(% )

Chart no. 2.8

We can see that Zuari’ Loss Before Tax was in very worst situation in the year
2003 but it continuously improved and in the 2006 profit was 30 times as much as
the 2002 amounts. Now we can say how fast zuari convert its self to loss making
to profit making company by reducing the operating cost and optimum utilization
of fixed cost.

Trend of manufacturing & other expenses against sales of Zuari

Cement limited for the year of 2002-03-04-05-06

Page
43 of 88
 400

200
Sales(%)
0
200 200 200 200 200
Manufacturing & other
Sales(%) 100 98 108 134 197 exp.(%)

Manufacturing 100 112 116 151 210

& other
exp.(%)

Chart no. 2.9

The following chart depict that Zuari cement limited has not control its
manufacturing expenses. We can see that expenses are increasing more than its
sales during the year.

GRAPHICAL ANALYSIS

Page
44 of 88
Profit/loss before tax of Zuari cement limited

The following chart depict that zuari cement had very small profit before
tax in the year of 2002 and It faced continuous losses over next three year. In the
year 2006 it made 30 times profit as much as the 2002 profit amount.
See annexure no. 3.4

Year 2002 2003 2004 2005 2006

Profit/loss before tax(in lacs) 34.65 -1172.81 -356.62 -449.93 1375.39

Table no.1.4

1500

1000

500

0 Profit/loss before
tax(In Lacs)
-500

-1000

-1500
2002 2004 2006

Chart no. 2.10

Profit/loss after tax

Page
45 of 88
The following chart depict that zuari cement had very small profit after tax in the
year of 2002 and It faced continuous losses over next three year. In the year 2006
it made 30 times profit as much as the 2002 profit amount.

See annexure no. 3.4

Year\value 2002 2003 2004 2005 2006

Profit/loss after tax 22.54 -1292.15 -795.69 -449.93 1317.39

Table no.1.5

1500

1000

500

0
Profit/loss after tax
-500

-1000

-1500
2002 2003 2004 2005 2006

Chart no. 2.11

Turnover of ZCL

Page
46 of 88
We can see that turnover of zuari cement are steadily increasing every year from
2003 to 2006 it reduced in 2002 as the 2.23%. it is twice in the year 2006 as
compare to 2002 amounts.

See annexure no. 3.4

Year\Value 2002 2003 2004 2005 2006

Turnover 12481.1 12202.8 13351.5 16583.4 24469.89
4 3 4 3

Table no.1.6

25000

20000

15000
Turnover
10000

5000

0
2002 2003 2004 2005 2006

Chart no. 2.12

Page
47 of 88
 RATIO ANALYSIS

In order to assess how your business is doing, you'll need more than single
numbers extracted from the financial statements. Each number has to be viewed in
the context of the whole picture.

For example, your income statement may show a net profit of

$100,000. But is this good? If this profit is earned on sales of
$500,000, it may be very good; but if sales of $2,000,000 are required
to produce the net profit of $100,000, the picture changes drastically. A
$2,000,000 sales figure may seem impressive, but not if it takes
$2,000,000 in assets to produce those sales.

The true meaning of figures from the financial statements emerges only when they
are compared to other figures. Such comparisons are the essence of why business
and financial ratios have been developed.

Various ratios can be established from key figures on the financial statements.
These ratios are very simple to calculate — sometimes they are simply expressed
in the format "x:y," and other times they are simply one number divided by
another, with the answer expressed as a percentage. However, these simple ratios
can be a powerful tool because they allow you to immediately grasp the
relationship expressed.

When you routinely calculate and record a group of ratios at the end of every
accounting period, you can assess the performance of your business over time, and
compare your business to others in the same industry or to others of a similar size.
By doing so, you won't be alone — banks routinely use business ratios to evaluate
a business that's applying for a loan, and some creditors use them to determine
whether to extend credit to you.

When you compare changes in your business's ratios from period to period, you
can pinpoint improvements in performance or developing problem areas. By
comparing your ratios to those in other businesses, you can see possibilities for
improvement in key areas. A number of sources, including many trade or business
associations and organizations, provide data for comparison purposes; they are
also available from commercial services. Your accountant may be a good source
of information on how your business compares to similar ones in your particular
locale.

There are dozens and dozens of financial ratios that you can look at, but many will
have little or no meaning for your business. In the following sections we'll
concentrate on those that are most commonly considered to have the most value
for making small business decisions. The ratios fall into four categories:

Page
48 of 88
 • liquidity ratios
• efficiency ratios
• profitability ratios
• solvency ratios

ADVANTAGES OF RATIO ANALYSIS:-

Financial statement like profit and Loss account and balance sheet are prepared at
the end of the year do not always conveys to the reader the real profitability and
financial health of the business. They contain various facts and figures and it is for
the reader to conclude, whether these facts indicate a good or bad managerial
performance. Ratio analysis is the most important tool of analysis these financial
statements. The figures then speak of liquidity, solvency by a profitability etc. of
the business enterprises. Some important object and advantages derived by a firm
by the use of accounting ratios are:-

• Helpful in analysis of financial statement

• Simplification of accounting data

• Helpful in Comparative Study

• Helpful in locating the weak spots of the business

• Helpful in forecasting

• Estimation of ideal standards

• Fixation of ideal Standards

• Effective Control

• Study of financial soundness

Page
49 of 88
LIMITATIONS OF RATIO ANALYSIS:-

Ratio analysis is a very important tool of financial analysis. But despite it’s being
indispensable, the ratio analysis suffers from a number of limitations. These
limitations should be kept in mind while making use of the ratio analysis: -

• False accounting data gives false ratios

• Comparison not possible if different firms adopt different Accounting

policies

• Ratio analysis becomes less effective due to price level changes

• Ratio may be misleading in the absence of absolute data

• Limited use of a single Ratio

• Window dressing

• Lack of proper standards

• Ratios alone are not adequate for proper conclusion

Page
50 of 88
CLASSIFICATION OF RATIOS:-

According ratios or financial ratio has been classified in various ways according to
different purposes in view. However, we shall discuss the classification according
to annual financial statement and according to objectives.

• Classification of ratio on the basis of financial statement:- Ratio is

calculated on The basis of information given in the financial statement, which
is as follows:

• Balance sheets Ratios or position statement ratios:- These are the

ratios which explain the numerical relationship between two figures in
the balance sheet, e.g. the Ratio of current assets to current liabilities or
the ratio between capital and total Assets, This is also called financial
ratio. The most common amongst the balance Sheet ratios are:

• Current Ratio

• Liquid ratio or Acid Test Ratio

• Proprietary Ratio

• Capital gearing Ratio

• Fixed Assets to Current Assets Ratio.

• Income statement Ratio or profit and loss Account Ratios:

-These explain the numerical relationship between two items of
group of items of the profit and loss A/c. The items should refer to
the same statement. The more common ratios under this head are:

• Operating Ratio

• Gross profit Ratio

• Net profit Ratio

Page
51 of 88
 • Expenses Ratio

• Stock Turnover Ratio

• Composite Ratio: - These ratios are based on the figures of

positions.

Statement as well as income statement e.g.

• Fixed assets

• Return on capital employed ratio, etc.

• Classification of ratios on the basis of objective-

Ratio can be classified into four groups on the basis of

objective:-

• Liquidity ratios

• Solvency ratios

• Activity ratios

• Profitability ratio

• Investment ratio

Page
52 of 88
• LIQUIDITY RATIO:-

Liquidity refers to the ability of a firm to meet its short-term financial

obligations when and as they fall due. Thus a liquidity ratio measures the
firm’s ability to fulfil short-item commitment out of its liquid assets.

• CURRENT RATIO OR WORKING CAPITAL RATIO:-

This ratio explains the relationship between current Assets and current
liabilities of a business. “Current assets” include those assets, which can be
converted into cash within a year’s time, and Current liability includes
those liabilities, which are repayable in a year’s time. The formula for
calculating the ratio is:-

Current Assets

Page
53 of 88
 Current Ratio =
Current Liabilities

See annexure no. 3.4

Year 2002 2003 2004 2005 2006

Ratio 0.92 1.68 1.67 1.24 1.14
3819.9 2674.5 3215.4 3673.5 5571.9
Current Assets 3 9 5 7 2
4157.8 1595.2 1923.2 2954.1 4904.1
Current liabilities 2 2 5 9 8

Table no.1.7

Source: compiled from the annual report of zuari cement limited.

INTERPRETATION

In 2002 ZCL had .92 paisa to pay Rs 1 which is very worst situation from
the creditor point of view. However, a ratio of less than 1 : 1 would
certainly undesirable in any industry as at least some safety margin is
required to protect the interest of creditors and to provide cushion to the
firm in adverse circumstances.

In 2003 and 04 ZCL had 68 percent more capacity to pay its short term
liabilities that even with a drop-out of 68 percent in the value of current
assets, ZCL can meet its obligation. Company must maintain at least this
percent of liquidity every year.

In 2005 and 06 company’s current ratio fell down that is 1.24: 1 and 1.14:
1 that is sufficient to pay its short term liabilities but from the investor
point of view the margin of safety is very less in the both year though
company must increase its liquidity position for paying its short term
obligation.

Page
54 of 88
 These low numeric values of ratio do not indicate a good sign from
investor’s especially for sundry creditors. Company has to concentrate on
company’s liquidity problem.

• QUICK RATIO OR ACID-TEST RATIO:-

Page
55 of 88
 Quick ratio indicates whether the firm is in a position to pay its current
liabilities within a month or immediately. ‘Liquid assets’ means those
assets, which will yield cash very shortly. All current assets except stock
and prepaid expenses are included in liquid assets. Stock is excluded from
liquid assets because it has to be sold before it can be converted into cash.
Prepaid expenses are to be excluded from the list of liquid assets because
they are not expected to be converted into cash.

Liquid assets thus include cash debtors, bill receivable and short-term securities.
As such the Quick ratio is calculated by dividing liquid (Quick current assets) by
current liabilities: -

Liquid Assets
Quick Ratio =
Current Liabilities

See annexure no. 3.4

Year 2002 2003 2004 2005 2006

Ratio 0.61 1.06 1.20 0.92 0.90
2530.5 1689.2 2723.1 4429.4
Liquid Assets 3 5 2303.8 2 3
4157.8 1595.2 1923.2 2954.1 4904.1
Current Liabilities 2 2 5 9 8

Table no.1.8

Source: compiled from the annual report of zuari cement limited.

INTERPRETATION

In 2003 and 04 ZCL had ability to meet their cash demand but in 2002, 05
and 2006 the numeric value of ratio is less than their ideal value which
shows that company was suffering from cash problem. This data of ratio is
not good for those creditors who give short-term loan to company.

Generally, an acid test or quick ratio of 1:1 is considered satisfactory as

ZCL can easily meet all current claims.

Page
56 of 88
 • LEVERAGE RATIO OR SOLVANCY RATIO:-

Any ratio used to calculate the financial leverage of a company to get an

idea of the company's methods of financing or to measure its ability to
meet financial obligations. There are several different ratios, but the main
factors looked at include debt, equity, assets and interest expenses.

Companies with high fixed costs, after reaching the breakeven point, see a
greater increase in operating revenue when output is increased compared
to companies with high variable costs. The reason for this is that the costs
have already been incurred, so every sale after the breakeven transfers to
the operating income. On the other hand, a high variable cost company
sees little increase in operating income with additional output, because
costs continue to be imputed into the outputs. The degree of operating
leverage is the ratio used to calculate this mix and its effects on operating
income.

There are 5 types of leverage ratio:-

Page
57 of 88
 • DEBT-EQUITY RATIO:-

This ratio expresses the relationship between external liabilities and

shareholder’s funds. It indicates the proportion of funds, which are
provided by outside creditors in comparison to shareholders funds. This
ratio is calculated to ascertain the soundness of the long-term financial
policies of the firm.

a) External Equities – These include all the long-term and short-term debts
such as, Debenture, Mortgage Loan, Bank Loan, Public Deposits and all
the Current Liabilities.

b) Internal Equities- These includes Equity share capital, Preference Share

Capital, Reserves and credit balance of Profit & Loss A/c.

Total Debt
Debt-Equity Ratio =
Equity& Net worth
See annexure no. 3.4

Year 2002 2003 2004 2005 2006

Ratio 3.15 1.32 1.59 1.69 1.83
Total 7526.1 5362.7 6465.9 6857.9 7421.8
Debt 2 8 2 5 8
2386.9 4058.6 4058.6 4058.6 4058.6
Net worth 2 3 4 4 4

Table no.1.9

Source: compiled from the annual report of zuari cement limited.

INTERPRETATION

Page
58 of 88
 In Zuari Cement Limited., the value of debt-Equity ratio is more than 1.
On the other hand, return to company is not high so that debt become
beneficial for company. It is a burden on company. In 2002 company
shows very high ratio but a high debt equity ratio has serious implications
from the firms’ point of you.

The high ratio would lead inflexibility in the operations of the firm, as
creditors would be able to borrow funds only under restrictive conditions;
a firm faces difficulty in raising funds in future.

In 2003 ZCL had 1.32:1 ratio between debt and equity which depict that

Company financed its debt in very less proportion to equity.

• PROPRIETORY RATIO:-

This is the ratio, which shows the relationship of internal equity with the
total assets. This ratio indicates the proportion of total funds provided by a
firm from internal sources it is calculated as under:-

Equity Internal Equity

(Shareholder’s Funds)
Proprietory Ratio = or
Equity + Debts Total Equity or Total Assets

See annexure no. 3.4

Year 2002 2003 2004 2005 2006

Ratio 0.24 0.43 0.39 0.37 0.35
2386.9 4058.6
Equity 2 3 4058.64 4058.64 4058.64
Equity+De 9913.0 9421.4 10524.5 10916.5 11480.5
bt 4 1 6 9 2

Table no.1.10

Page
59 of 88
 Source: compiled from the annual report of zuari cement limited.

INTERPRETATION

In Zuari cement limited, proprietary ratio is less than 1 or 50%. This low
value of ratio indicates the unsound financial position of company. It is not
good for long term prospect. Company has to take certain steps to equity
portion of this ratio.

• DEBT-TOTAL ASSET RATIO:-

Total debt comprises of long-term debt & current liabilities &Total Asset
comprises of permanent capital & current assets.

While calculating total assets all the intangible assets appearing on the
assets side of the balance sheet should be deducted such as preliminary
expenses Underwriting Commission, Debt balance of P&L A/c etc. This
ratio indicates the proportion of total funds acquired by a firm by outside
sources.

Total Debt
Debt-asset ratio =
Total Asset

See annexure no. 3.4

Year 2002 2003 2004 2005 2006

Ratio 0.99 0.66 0.71 0.79 0.82
Total 7526.1 5362.7 6465.9 6857.9 7421.8
Debt 2 8 2 5 8
7586.2 8074.1 9104.3 8647.3 9036.5
Total Assets 3 6 2 9 0

Page
60 of 88
Table no.1.11

Source: compiled from the annual report of zuari cement limited.

INTERPRETATION

It is appreciable ratio for Zuari cement Ltd. that it had less than 1 in all the
five year which shows that ZCL is financially very strong, because this
ratio should be less than 1 or 50%. This shows that company has strong
financial position. If company has more total assets then it is good for their
long-term financing.

• INTEREST COVERAGE RATIO

The interest coverage ratio is a measurement of the number of times a

company could make its interest payments with its earnings before interest
and taxes; the lower the ratio, the higher the company’s debt burden.

Earnings before interest & tax

Interest coverage ratio =
Total interest

See annexure no. 3.4

Year 2002 2003 2004 2005 2006

Ratio 1.04 -0.46 0.46 0.18 3.35
834.0 309.5
EBIT 6 -368.1 9 96.5 1960.57
T.Interes 799.4 804.7 666.2 546.4
t 1 1 1 3 585.18

Table no.1.12

Page
61 of 88
 Source: compiled from the annual report of zuari cement limited.

INTERPRETATION

In 2004 and 05, interest coverage ratio of Zuari Cement Ltd. was .46 and
.18 which is very low below standard for investor’s point of view. In the
2003 Company has negative interest coverage ratio which shows that
company is not able to pay its interest obligation. It also shows that
company has weak short-term financial health.

In the year 2002, interest coverage ratio of ZCL was 1.04 which also low
below Standard for investor’s point of view. But in the year 2006, the ratio
was 3.35:1 that is good for both company and investor, because every
investor seek to greater return from a company.

• ACTIVITY RATIO OR TURN-OVER RATIO:-

These ratios measure how well the facilities at the disposal of the being
utilized. These ratios are known as turnover ratio as they indicate the
rapidity with which the resources available to the concern are being used
to product sales. In other, words these ratio measure the efficiency and
rapidity of the resources of the company, like stock, fixed assets, working
capital debtors etc. these ratio are generally calculated on the basis of sales
or cost of sales some of the important activity ratios are discussed below: -

• STOCK TURNOVER RATIO :-

This ratio indicates the relationship between the cost of goods sold
during the year and average stock kept during that year.

Page
62 of 88
 Cost of Goods Sold
Stock Turnover Ratio =
Average Stock

Cost of goods sold = (Opening Stock +Purchase +Direct Exp. - Closing Stock)
Or
= Sales – Gross Profit

Average stock can be calculated as follows: -

Opening Stock + Closing Stock

Average Stock =
2
See annexure no. 3.4

Year 2002 2003 2004 2005 2006

Ratio 3.19 5.17 6.41 8.51 10.54
10506.9 11767.6 12154.7 15850.0 22060.0
COGS 5 7 2 6 9
A.Inv. 3291.68 2274.74 1896.99 1862.1 2092.94

Table no.1.13

Source: compiled from the annual report of zuari cement limited.

12 Months

Inventory holding period =

Inventory turn over ratio

See annexure no. 3.4

2 2 2 2
Year 002 003 004 005 2006
Holding 3 2 1 1
period(month) .76 .32 .87 .41 1.14

Page
63 of 88
Months 12 12 12 12 12
3 5 6 8
Inv.turnover ratio .19 .17 .41 .51 10.54

Table no.1.14

Source: compiled from the annual report of zuari cement limited.

INTERPRETATION

Zuari Cement limited had appreciably increased their stock turnover ratio from
2002 to 2006. It was approx. three times more than the 2002. It proves that their
sales increase during this period. Stocks are converted into sells quickly even the
profit margin increases.

We can see that the inventory holding period also continuously decreased every
year. It was 3.76 in the year 2002, reached 1.14 in 2006 then we can assume that
its sales increased every year.

Page
64 of 88
 • DEBTOR’S TURNOVER RATIO :-

This ratio indicates the relationship between credit sales and average
debtors during the year:-

Net Credit Sales

Debtors Turnover Ratio =
Average Debtors + Average B/R

Bills receivable are added in Debtors for the purpose of calculation of this
ratio. Average debtors are calculated by adding the debtors and B/R at the
beginning of a period as well as at the end of the period and by dividing
the total by 2. While calculating this ratio provision for bad and doubtful
debts is not deducted from total debtors so that it may not give a false
impression that debtors are collected quickly.

If the amount of credit sales is not given in the question, the ratio may be
calculated by taking the figure of total sales.

See annexure no. 3.4

Year 2002 2003 2004 2005 2006

Ratio 4.62 5.79 9.46 8.49 12.62
12304.3 12030.0 13231.6 16476.7 24280.2
Net credit sales 4 7 6 9 3
Opening
debtors 1824.42 1681.42 790.8 1215.41 1452.34
Closing debtors 1681.42 790.8 1215.41 1452.34 942.97
A.debtor+A.B/R 2665.13 2076.82 1398.51 1941.58 1923.83

Table no.1.15

Source: compiled from the annual report of zuari cement limited.

Page
65 of 88
 12 Months

Debtor Collection Period =

Debtor Turnover Ratio

See annexure no. 3.4

2 2 2 2
Year 002 003 004 005 2006
Month 2 2 1 1
s .60 .07 .27 .41 0.95
12 (months) 12 12 12 12 12
Debtor turnover 4 5 9 8
ratio .62 .79 .46 .49 12.62

Table no.1.16

Source: compiled from the annual report of zuari cement limited.

INTERPRETATION

Page
66 of 88
 In Zuari cement Ltd., Debtors turnover ratio was continuously increased
which is good for a company. It indicates that company operate its
functions either on cash basis or collection of account receivable is
efficient. Here company is facing low risk of bad debt.

We can see that the Debtor collection time period of Zuari Cement Ltd.
continuously decreased from 2002 to 2006. It indicates that company give less
credit time to its debtor that is beneficial for the company.

• WORKING CAPITAL TURNOVER:-

It is 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.

Sales
Working capital turnover =
Working capital

Working capital = Current Assets - Current Liabilities

Page
67 of 88
See annexure no. 3.4
Year 2002 2003 2004 2005 2006
Ratio -36.42 11.15 10.24 22.90 36.36
12304.3 12030.0 13231.6 16476.7 24280.2
Sales 4 7 6 9 3
Current Assets 3819.93 2674.59 3215.45 3673.57 5571.92
C. Liabilities 4157.82 1595.22 1923.25 2954.19 4904.18
Net working capital -337.89 1079.37 1292.2 719.38 667.74

Table no.1.17

Source: compiled from the annual report of zuari cement limited.

INTERPRETATION

In 2002 ZCL shows negative working capital that is not good for a
company And turnover ratio also negative. It could not convert working
capital in to sales due to which it made very little profit that year.

In 2005 and 2006 the working capital shows improvement that means it
easily converted its W.C. in to sales. We can see the ratio was also
increase. It indicates that company started proper use of its working capital
for making profit.

These ratios concerned with the effective use of working capital & indicate
the number of time capital was changed into sales. It can be seen in the
year 2004 and 2006.

• TOTAL ASSET TURNOVER RATIO:-

This ratio expresses the relationship between total assets (fixed assets less
depreciation & current assets) and net sales. It is calculated using the following
formula:

Page
68 of 88
 Net Sales
Total Assets Turnover Ratio =
Total Assets

See annexure no. 3.4

Year 2002 2003 2004 2005 2006

Ratio 1.62 1.49 1.45 1.91 2.69
12304.3 12030.0 13231.6 16476.7 24280.2
Sales 4 7 6 9 3
A.Total
Assets 7586.23 8074.16 9104.32 8647.39 9036.5

Table no.1.18

Source: compiled from the annual report of zuari cement limited.

INTERPRETATION

In 2003 and 2004 ZCL did not utilise its resources to increasing profit
margin and sales of company and presence of idle capacity, but in 2002
and 2005 it slightly increase and show the efficiently utilization of fixed
assets.

In 2006 the assets turnover ratio appreciable increased that indicates how
efficiently ZCL utilised its assets to making a good profit as compare over
the previous year.

Page
69 of 88
 • FIXED ASSET TURNOVER RATIO:-

This ratio expresses the relationship between fixed assets less depreciation
and net sales or cost of goods sold. The formula used for calculating this
ratio is as follows:

Net Sales or cost of goods sold

Fixed Assets Turnover Ratio=
Net Fixed Assets

Net Fixed Assets = Fixed assets – Depreciation

See annexure no. 3.4

Year 2002 2003 2004 2005 2006

Ratio 2.42 2.67 3.00 4.16 6.52
Net 12304.3 12030.0 13231.6 16476.7 24280.2
Sales 4 7 6 9 3
11339.1 11265.9 11461.1 11606.2
Fixed Assets 6 8 1 2 11771.2
Depreciation 6250.59 6763.18 7055.19 7642.64 8045.84
Net fixed Assets 5088.57 4502.8 4405.92 3963.58 3725.36

Table no.1.19

Source: compiled from the annual report of zuari cement limited.

INTERPRETATION

This ratio indicates that ZCL is efficiently utilising its fixed assets that is
good signed for the company. The ratio is continuously increasing every
year which indicates that sales are also increasing according to fixed
assets.

The ratio reached two and half time more in 2006 as compare the 2002. By
which we can see that, how management took excellent steps for
utilization of fixed assets.

Page
70 of 88
 • Cash Ratio
The cash ratio is an indicator of a company's liquidity that further
refines both the current ratio and the quick ratio by measuring the amount
of cash; cash equivalents or invested funds there are in current assets to
cover current liabilities. The formula used for this ratio is as follow.

See annexure no. 3.4

Year 2002 2003 2004 2005 2006

Ratio 0.036 0.186 0.217 0.184 0.097
Cash 148.14 296.54 418.27 543.39 477.23
4157.8 1595.2 1923.2 2954.1 4904.1
C.L. 2 2 5 9 8

Table no.1.20

Source: compiled from the annual report of zuari cement limited.

INTERPRETATION

Very few companies will have enough cash and cash equivalents to
fully cover current liabilities, which isn't necessarily a bad thing, so
don't focus on this ratio being above 1:1.

It is not realistic for a ZCL to purposefully maintain high levels of cash

assets to cover current liabilities. The reason being that it's often seen
as poor asset utilization for ZCL to hold large amounts of cash on its
balance sheet, as this money could be returned to shareholders or
used elsewhere to generate higher returns.

Page
71 of 88
 • PROFITABLITY RATIO:-

The main object of every business concern is to earn profits. A business must be
able to earn adequate profits in relation to the capital invested in it. The efficiency
and the success of a business can be measured with the help of profitability ratios.
We can understand more about these ratios by categorized it into the following
two:-

I. Ratios calculated on bases of sales - {Net Sales means (sales +

Income from Service)} these are as follows:

• NET PROFIT RATIO:-

This ratio measured the relationship net profits and sales of a firm. Net
profit is the excess of revenue over expenses during a particular
accounting period. The net profit ratio is determined by dividing the net
profit by sales and expressed as percentage. The formula used is as
follows:-

Net Profit after Interest & Tax

Net Profit Ratio =
Net Sales
See annexure no. 3.4

Ratio (%) 0.18 -10.74 -6.01 -2.73 5.43

Net -1292.1
Income 22.54 5 -795.69 -449.93 1317.39
12304.3 12030.0 13231.6 16476.7 24280.2
Sale 4 7 6 9 3

Page
72 of 88
Table no.1.21

Source: compiled from the annual report of zuari cement limited.

INTERPRETATION

In ZUARI Cement limited’ net sales do not show appreciable rise &cost of
production is continuously increases in the year 2002, 2003 and 2004 due
to which there was slight profit margin in 2002 and considerable loss in
2003 and 04 but after that company shows some improvement in sales by
which it had recovered loss in 2005 and 2006 it made it converted in
profit. It is not good from shareholder’s point of view.

The ratio clearly indicate that ZCL’s selling and operating expenses is
quite high in the year 2002 to 2005 that’s why it made loss during the year.
ZCL must concentrate on these expenses.

• GROSS PROFIT RATIO:-

A company's cost of sales, or cost of goods sold, represents the expense

related to labor, raw materials and manufacturing overhead involved in its
production process. This expense is deducted from the company's net
sales/revenue, which results in a company's first level of profit, or gross
profit. The gross profit margin is used to analyze how efficiently a
company is using its raw materials, labor and manufacturing-related fixed
assets to generate profits. A higher margin percentage is a favorable profit
indicator.

Gross Profit
Gross profit ratio =
Net sales

Page
73 of 88
See annexure no. 3.4

Year 2002 2003 2004 2005 2006

Ratio
(%) 14.61 2.18 8.14 3.80 9.14
G.P. 1797.39 262.4 1076.94 626.73 2220.14
12304.3 12030.0 13231.6 16476.7 24280.2
Sale 4 7 6 9 3

Table no.1.22

Source: compiled from the annual report of zuari cement limited.

INTERPRETATION

The gross profit ratio indicate that in 2002 Zuari cement efficiently used raw
material, labour and other manufacturing assets for generating profit. But in 2003,
04 and 2005 it was very less that means it was not able to proper uses of its
resources.

In 2006 the margin of gross profit was 9.14% that is quit high compare than
previous three year. Company should consider of using raw material, labour and
other manufacturing assets.

II. Ratio calculated on basis of Capital – These are as follows:

• RETURN ON CAPITAL EMPLOYED:-

This ratio reflects the overall profitability of the business. It is calculated

by comparing the profit earned and the capital employed to earn it. This
ratio is usually in percentage and is also known as ‘Rate of Return’ or
Return on Capital Employed’ or ‘Yield on Capital’.

Page
74 of 88
 The term ‘Investment’ here refers to long-term funds
deployed in the enterprise. As defined earlier long-term funds are also
known as capital employed which means total of shareholder funds and
long term loans. Since the Capital employed includes shareholders funds
and long-term loans, interest paid on long-term loans will not be deducted
from profits while calculating this ratio. The ratio is computed as under.

Net Profit before Interest and Tax

Return on Capital employed =
Capital Employed

Where,
Capital Employed = Total Assets – Current Liabilities

See annexure no. 3.4

Year 2002 2003 2004 2005 2006

Ratio
(%) 17.56 -6.59 5.43 2.06 44.63
1960.5
EBIT 834.06 -368.1 309.59 96.5 7
7177.3 7621.3 7637.1 9297.2
Total Assets 8908.5 9 7 5 8
4157.8 1595.2 1923.2 2954.1 4904.1
Current Liabilities 2 2 5 9 8
4750.6 5582.1 5698.1 4682.9
Capital employed 8 7 2 6 4393.1

Table no.1.23

Source: compiled from the annual report of zuari cement limited.

INTERPRETATION

In Zuari cement limited the return on capital employed was negative in the
year 2003 and very less return in 2002, 04 and 05. This indicates that there

Page
75 of 88
 is not effective & efficient utilization of capital. This shows that effective
utilization of long term fund is not takes place.

But in 2006 management of ZCL Shows effective used of debt and equity
that is good for the company because many investment analysts think that
factoring debt into a company's total capital provides a more
comprehensive evaluation of how well management using the debt and
equity it has at its disposal.

• RETURN ON EQUITY SHARE HOLDER’S FUND:-

This ratio expresses the percentage relationship between net profit after
interest and tax and proprietors funds or shareholders investment. This is
also known as “Return on proprietor’s funds”. It is used to ascertain the
earning power of shareholders investment. Proprietors or shareholders
funds include preference share capital as well as equity shareholders funds
which in turn comprises equity shares capital share premium, and reserves
and surplus. The shareholders equity also refers to the Net worth of a
company. The net profits are after deducting interest and tax but before
deducting dividend on preference shares. It is the final income that is
available for distribution as dividend to shareholders. The ratio is
calculated by using the following formula:-

Net Profit after Interest and Tax

Return on Equity share holder’Fund =

Shareholder’s Fund

Page
76 of 88
See annexure no. 3.4

Year 2002 2003 2004 2005 2006

Ratio (%) 0.94 -31.84 -19.60 -11.09 32.46
-1292.1 -795.6 -449.9 1317.3
Profit After tax 22.54 5 9 3 9
Shareholder’s 2386.9 4058.6 4058.6 4058.6 4058.6
equity 2 3 4 4 4

Table no.1.24

Source: compiled from the annual report of zuari cement limited.

INTERPRETATION

In Zuari cement ltd. profitability on share capital & and long term fund is in
negative in the year 2003 to 2005due to loss after tax i.e. shareholders loss their
amount from principal. This decreases the value of company in market which
may create finance problem in future. Investors move away from doing
investment in company. In 2006 it give 32% return on equity that may be good
sign for investor point of view.

• RETURN ON TOTAL ASSET:-

Profitability can also be measured by establishing relationship between net

profit and total assets. This ratio is computed by dividing the net profits
after tax by total funds invested or total assets. Total assets mean all net
fixed current assets and non-trading investments. Factious assets are
excluded but intangible assets are not excluded. The ratio is expressed as
formula.

Net Profit after Interest and Tax +Interest

Return on Total Assets =
Total assets
Page
77 of 88
See annexure no. 3.4

Year 2002 2003 2004 2005 2006

Ratio (%) 9.23 -6.79 -1.70 1.26 20.46
-1292.1 -795.6 -449.9 1317.3
Net income 22.54 5 9 3 9
Interest 799.41 804.71 666.21 546.43 585.18
8908.5 7177.3 7621.3 7637.1 9297.2
T.Assets 0 9 7 5 8
-129.4 1902.5
Net income +Interest 821.95 -487.44 8 96.5 7

Table no.1.25

Source: compiled from the annual report of zuari cement limited.

INTERPRETATION

In Zuari cement Ltd. return on total assets are very pathetic in the 2003 to
2005. Company invests money in various operation but do not able to get
back return from it. Here also company is continuously loosing. But in
2006 company quietly improved its position that break the standard form.

The thumb rule say that company ROA may not come less than 5%. That
can be seen in the year 2002 and 2006. When company got better return on
its assets.

• INVESTMENT ANALYSIS:-

• RESERVE-CAPITAL RATIO:-

Page
78 of 88
 This ratio explains the profit allocation policy of a company. It is
calculated by dividing reserves by equity shares capital thus.

Reserve
Reserve to Capital Ratio =
Equity Share Capital

See annexure no. 3.4

Year 2002 2003 2004 2005 2006

Ratio 0.01 0.63 0.63 0.63 0.63
Reserve 1573.2 1573.2 1573.2 1573.2
s 15.00 2 2 2 2

Equity Share
2371.9 2485.4 2485.4 2485.4 2485.4
Capital 2 1 2 2 2

Table no.1.26

Source: compiled from the annual report of zuari cement limited.

INTERPRETATION

This data find out equity share is no more than different in three years. So
company is not dealing or trading in share. Company didn’t have good reserves in
2002. But from 2002 it increased its reserve that was more than 50% of share
capital which proves that company could face out from any financial problem.
Now it maintained its reserve more than 50% in every year till 2006. It seems that
company is now financially sound full.

• DEBT RATIO

The debt ratio compares a company's total debt to its total assets,
which is used to gain a general idea as to the amount of leverage
being used by a company. A low percentage means that the

Page
79 of 88
 company is less dependent on leverage, i.e., money borrowed from
and/or owed to others. The lower the percentage, the less leverage
a company is using and the stronger its equity position. In general,
the higher the ratio, the more risk that company is considered to
have taken on.

Formula:

See annexure no. 3.4

Year 2002 2003 2004 2005 2006

Ratio 84.48 74.72 84.84 89.80 79.83
T.LIABILITIE 5362.7
S 7526.12 8 6465.92 6857.95 7421.88
7177.3
T.Assets 8908.50 9 7621.37 7637.15 9297.28

Table no.1.27

Source: compiled from the annual report of zuari cement limited.

INTERPRETATION

The easy-to-calculate debt ratio is helpful to investors looking for a quick take on
a company's leverage. The debt ratio gives users a quick measure of the amount of
debt that the company has on its balance sheets compared to its assets.

The use of leverage, as displayed by the debt ratio, can be a double-edged sword
for companies. If the company manages to generate returns above their cost of
capital, investors will benefit. However, with the added risk of the debt on its
books, a company can be easily hurt by this leverage if it is unable to generate
returns above the cost of capital. Basically, any gains or losses are magnified by
the use of leverage in the company's capital structure.

• Capitalization Ratio

Page
80 of 88
 The capitalization ratio measures the debt component of a company's
capital structure, or capitalization (i.e., the sum of long-term debt liabilities
and shareholders' equity) to support a company's operations and growth.

Long-term debt is divided by the sum of long-term debt and shareholders'

equity. This ratio is considered to be one of the more meaningful of the
"debt" ratios – it delivers the key insight into a company's use of leverage.

Formula:

See annexure no. 3.4

Year 2002 2003 2004 2005 2006

Ratio 58.53 48.14 52.81 49.03 38.28
3368.3 3767.5 4542.6 3903.7 2517.7
Long term debt 0 6 7 6 0
Long term 5755.2 7826.1 8601.3 7962.4 6576.3
debt+Equity 2 9 1 0 4

Table no.1.28

Source: compiled from the annual report of zuari cement limited.

INTERPRETATION

The company capitalization ratio shows the ZCL’s healthy financial condition
because ZCL has more equity than its long term debts in the year 2002 to 2005 but
it reduced in 2006 so company should concentrate on this.

Page
81 of 88
• Growth Ratio

These ratio measure the rate at which a firm should grow. Growth rate in sales
need additional investment support incremental sales both in terms of current
assets (such as inventory and debtor) and productive capacity/long-term assets
(such as plant and machinery). The firm’s growth rate is higher when external
finance is used. It is lower when it used internally generated funds (retained
earning) only finance to its assets.

There are two types of growth rates:

• Internal growth rate

• Sustainable growth rate

• Internal Growth Rate

The IGR is the maximum rate at which a firm can grow (in terms of sales or
assets) without external financing of any kind. To determine the IGR the
following assumption are made:

There is an increase in assets of the firm in proportion to the sales,

The net profit margin after taxes is in direct proportion to sales,

The firm has a target dividend payout ratio (retention ratio) which it
wants to maintain,

The firm wants to grow at a rate which is warranted by its retentions.

Formula

ROA*b
IGR =
1-(ROA*b)

Where (i) ROA is the return on assets

(ii)b is retention ratio(1-Dividend payout)
See annexure no. 3.4

Year 2002 2003 2004 2005 2006

-100.1 -100.8
Ratio 1 -99.85 -99.41 0 -100.05
ROA* 922.6 -679.1 -169.8 126.3
B 6 3 9 6 2046.37
-921.6 680.1 170.8 -125.3 -2045.3
1-(ROA*B) 6 3 9 6 7

Page
82 of 88
Table no.1.29

Source: compiled from the annual report of zuari cement limited.

INTERPRETATION

The following table shows the ZCL had negative internal growth rate, because
firm has 100% retained earning. It is not registered company in the stock market.

• Sustainable Growth Rate

The SGR is the maximum rate at which the firm can grow by using internal
sources (retained earnings) as well as additional external debt but without
increasing its financial leverage (debt – equity ratio). To determine SGR, the
two additional assumptions are made:

The firm has a target capital structure (D/E ratio) which it wants to maintain,

The firm does not intend to sell new equity shares as it is a source of finance.

Formula

ROE*b
SGR =
1-(ROE*b)

Where (i) ROE is the return on equity and

(ii)b is Retention ratio (Dividend payout ratio)

See annexure no. 3.4

Year 2002 2003 2004 2005 2006

-101.0
Ratio 7 -99.97 -99.95 -99.91 -100.03
-3183.7 -1960.4 -1108.5
ROE*B 94.43 1 8 7 3245.89
3184.7 1961.4 1109.5 -3244.8
1-ROE*B -93.43 1 8 7 9

Page
83 of 88
Table no.1.30

Source: compiled from the annual report of zuari cement limited.

INTERPRETATION

The following table shows the ZCL had negative Sustainable growth rate,
because firm has 100% retained earning. It is not registered company in the stock
market.

Page
84 of 88
 RECOMMENDATIONS

Page
85 of 88
 RECOMMENDATIONS

• ZCL must increase its liquidity position for paying its short term
obligation, because its margin of safety is very less from investor point of
view during the year 2005 and 2006.

• In 2005 and 2006 company was suffered from cash problem. So ZCL
should consider in this area also.

• The high leverage ratio would lead inflexibility in the operations of the
firm, as creditors would be able to borrow funds only under restrictive
conditions; a firm faces difficulty in raising funds in future.

• The proprietary ratio is less than 1 or 50%. This low value of ratio
indicates the unsound financial position of company. It is not good for long
term prospect. Company has to take certain steps to equity portion of this
ratio.

• Company should consider of using raw material, labor and other

manufacturing assets for its gross margin profit.

• ZCL has more equity than its long term debts in the year 2002 to 2005 but
it reduced in 2006 so company should concentrate on this.

• The company should be moving ahead with strong performance and well
conceived strategies for expansion, diversification and corporate
transformation.

• The company should be better utilization of human resources and

improvement in work culture and productivity. Employees were motivated
through competition, prizes and incentives declared by the company from
time to time

Page
86 of 88
 • Inventory is slow moving item. There is still a possibility of reduction in
its holding days for ZCL the large part of current assets is in the form of
inventory.

• ZCL should raise its market share for establishing new plant in western
region. There is also ample quantity of lime stone.

BIBLIOGRAPHY

Page
87 of 88
 Bibliography

BOOKS

KHAN & JAIN and I. M. PANDEY

(Financial management)

WEBSITES

www.zuaricement.com
www.italcementgroups.com
www.investopedia.com
www.indiainfoline.com
www.wikipedia.com
www.indiabiznews.com
www.bnet.com …………etc

Page
88 of 88