Project
Project
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1 INTRODUCTION
For this study three years ‘comparative Income Statement’ & Balance Sheet
have been taken
for calculating ratio analysis. Main objective in undertasing this project is t
o supplement academic knowl edge with absolute practical exposure today
to day functions of the sector.
RESERCH FRAMEWORK
This study is based on the data about ULTRATECH CEMENT LTD for
a detailed study of its financial statements documents and system
ratios and finally to recognize and determine the position of the
company
1. LIQUIDITY RATIO
Liquidity means he firm ability to pay it’s current liabilities.
adquate liquidity of a firm to meet it’s current that is short term
obligations the survival of a firm depends on the adequacy of liquid
assets liquidity is essential to measure the short term solvency of the
firm by the management as well as the external interested parties before
taking decision .
a) CURRENT RATIO
b) ACID RATIO
c) ABSOLUTE SWICH RATIO
2. PROFITABILITY RATIO
Profitability ratios examine the gains earned by an
enterprise. They connect the profits to revenue or capitals applied
or assets of an enterprise. These ratios mirror on the enterprise’s
capability to obtain consistent returns with regard to the funds
utilised.
3. SOLVENCY RATIO
Solvency ratios measure a company’s long-term financial
viability. These ratios compare the debt levels of a company to its assets,
equity, or annual earnings.
4.EFFICIENCY RATIO
Efficiency ratios measure how well the business is using its
assets and liabilities to generate sales and earn profits. They calculate the
use of inventory, machinery utilization, turnover of liabilities, as well as
the usage of equity. These ratios are important because, when there is an
improvement in the efficiency ratios, the business stands to generate
more revenues and profits.
2.3 IMPORTANCE
1. Test of solvency. Ratios can illuminate the solvency of a firm. For example, when
the ratio of current assets to current liabilities is increasing, this indicates
sufficient working capital. Thus, creditors can be paid easily.
5. Liquidity position. With the use of ratio analysis, meaningful conclusions can be
obtained about the sound liquidity position of the firm. A firm's liquidity position is
sound if it can pay its debts when these are due for payments.
7. Business trends. Ratio analysis can expose trends that managers may use to take
corrective actions.
8. Helpful in cost control. Ratios are useful to measure performance and facilitate
cost control.
2.4 COMPONENTS
1. Meaning of current ratio or working capital ratio
It is calculated by deviding current assets by current liabilities.
So current ratio expresses relationship between current assets and
current liabilities. It is also called current working capital ratio .
It matches the total current assets of the firm to it’s current
liability.
Current Ratio= Current Assets
Current Liabilities
2 . Meaning of current assets
Current assets are cash or any other asset that can be converted
to cash within one year. In ordinary course of bisiness.
In short, current asset means assets realized within one year.
1. Accounts payable
2. Short-term debt such as bank loans or commercial paper
issued to fund operations
3. Dividends payable
4. Notes payable—the principal portion of outstanding debt
5. The current portion of deferred revenue, such as
prepayments by customers for work not yet completed or
earned
6. Current maturities of long-term debt
7. Interest payable on outstanding debts, including long-term
obligations
8. Income taxes owed within the next year
Disadvantages
1. Limited scope
2. Incomplete comparison
3. Historical data
4. Manipulation
5. Inaccurate assumptions
COMPANY PROFILE
ABG ensures that all the Group’s polices, forward – looking initiatives
and goalsare fully communicated to all employees and that they
understand and relate to these. ABG’scommitment to their people is
reflected in the sense of belonging and pride every employeefeels
towards the Group and the passion and commitment they bring to their
work.The Aditya Birla Group is India’s first truly multinational
corporation. Global in vision,rooted in Indian values, the group is driven
by a performance ethic pegged on value creationfor its multiple
stakeholders. Over 50 per cent of its revenues flow from its operations
acrossthe world. The Aditya Birla Group’s products and services
offer distinctive customer solutions worldwide. The Group has
operations in 20 countries - India, Thailand, Laos,Indonesia,
Philippines, Egypt, China,
Canada, Australia, USA, UK, Germany, Hungary,Brazil, Italy, France, L
uxembourg, Switzerland, Malaysia and Korea.In India, the Group has
been adjudged
“The Best Employer in India and among the top20 in Asia”
by the Hewitt-Economic Times and Wall Street Journal Study 2007. Thi
s has been announced recently
G L O B A L L Y THE ADITYA BIRLA GROUP IS :
A metals powerhouse, among the world’s most cost-
efficientaluminum and copper producers. Hindalco, (Plant: Howrah)
from its fold, is a Fortune500 Company. It is also the largest aluminum
rolling company and one of the 3
biggest producers of primary aluminum in Asia, with the largest single l
ocation copper smelter.
ININDIA:
COMPANY STRATEGY:
Taking these practices forward, ultratech chairman Mr. K
u m a r M a n g a l a m B i r l a institutionalised the concept of triple
bottom line accountability represented by economicsuccess,
environmental responsibility and social commitment. In a holistic way
thus, the interestsof all the stakeholders have been textured into
company’s group's fabric.The footprint of their social work today
spans 2,500 villages in India, reaching out toseven million people
annually. Their community work is a way of telling the people
amongwhom they operate that they care.Projects are planned after a
participatory need assessment of the communities around the plants.
Each project has a one-year and a three-year rolling plan, with
milestones and measurabletargets. The objective is to phase out their
presence over a period of time and hand over the reinsof further
development to the people. This also enables them to widen their
reach. Along withinternal performance assessment mechanisms,
their projects are audited by reputed externalagencies, who
measure it on qualitative and quantitative parameters, helping
them gauge theeffectiveness and providing excellent
inputs.Their partners in development are government bodies, d
istrict authorities, village panchayats and the end beneficiaries —
the villagers. The Government has, in their 5-year plans,special funds
earmarked for human development and they recourse to many of these.
At the same time, they network and collaborate with like-minded
bilateral and unilateral agencies to shareideas, draw from each
other's experiences, and ensure that efforts are not duplicated. At
another level, this provides a platform for advocacy. Some of
the agencies they have collaborated withare UNFPA, SIFSA,
CARE India, Habitat for Humanity International, Unicef and the
WorldBank.
“MILESTONES”
1983 -Awarpur Cement Works Plant I 1987 Awarpur Cement
Works Plant II 1993 -Jharsuguda grinding unit 1994 -Hirmi Cement
Works 1996 -Gujarat Cement Works Plant I 1998-
Andhra Pradesh Cement Works -Gujarat Cement Works Plant
II 1999 -Narmada CementCompany Limited acquired -Ratnagiri
Cement Works 2000 Bulk cement terminals at Mangalore, Navi Mumbai
and Colombo2001 -Grasim acquires 10 per cent stake in L&T.
Subsequently increases stake to 15.3 per cent by October 2002 -
Durgapur grinding unit2002 -Grasim increases its stake in L&T to
14.15 per cent -Arakkonam grinding unit -The Grasim Board
approves an open offer for purchase of up to 20 per cent of the equity
sharesof Larsen & Toubro Ltd (L&T), in accordance with the provisions
and guidelines issued by theSecurities & Exchange Board of India
(SEBI) Regulations,
1997. 2003 The board of Larsen & Toubro Ltd (L&T) decides to demerg
e its cement businessinto a separate cement company (CemCo). Grasim
decides to acquire an 8.5 per cent equity stakefrom L&T and then
make an open offer for 30 per cent of the equity of CemCo,
to acquire management controle of the company
2004 Completion of the implementation process to demerge the cement
business of L&Tand completion of open offer by Grasim, with the latter
acquiring controlling stake in the newly
formed company UltraTech 2006 -Narmada Cement Company
Limited amalgamated withUltraTech pursuant to a Scheme of
Amalgamation being approved by the Board for Industrial &Financial
Reconstruction (BIFR) in terms of the provision of Sick Industrial
Companies Act(Special Provisions) - Formerly known as Ultratech
Cemco Limited. The Group's principal activities are to manufacture
and market clinker and cement in India
MISSION STATEMENT:
“To deliver superior value to our customers, shareholders,
employees and society at large”
VISION STATEMENT:
"To actively contribute to the social and economic development of the
communities in which weoperate. In so doing, build a better, sustainable
way of life for the weaker sections of society andraise the country's
human development index."
VALUES:
Integrity
Commitment
Seamlessness
PassionSpeed
Mr. R.C.Bhargava
Mr. G.M.Dave
Mr. N.J.Jhaveri
Mr. S.B.Mathur
Mr. V.T.Moorthy
Mr. S.Rajgopal
Mr. D.D.Rathi
Mr.K.C.BirlaChief
Manufacturing Officer:
Mr. R.K.Shah
Mr. S.N.Jajoo
Mr. C.B.Tiwar
Company Secretary:
UltraTech has been on the roll call of top exporters of the Chemicals &
Allied Export PromotionCouncil, year after year. UltraTech has
also won the Capexil Certificate of Export Recognition.
Awards in the field of :
1.Export
2.Environment
3.Safety
4.Finance
5 . C S R
6.Quality
7.ISO/SA/OHSAS
8.UltraTech Superbrand Award 2012
9.Birla White Superbrand Award 2012
10. UltraTech Superbrand Award 2011
11. Birla White Superbrand Award 2011
12. Birla White Superbrand Award 2009
PRODUCT PROFILE
Ultratech is providing different kinds of product related to
constructions and variety of products are available in the
market.
Better quality
Market share.
Weakness:
Delay in supply.
Inconsistency of Supply.
Insufficient manpower
Opportunity:
––––
When you view India through a prism, its multi-faceted refractions
are awesome, uniqueand partly distressing. A multiethnic, multi-
religious, multilingual, multi-cultural diversedemocracy, rich
in its distinctive heritage — India is, indeed, captivating. Our
democracyresonates throughout the world. Moreover, the way in
which India has transformed itself from acolonial, agri-based backwater
economy into an independent, modern, knowledge-driven one isthe
stuff of case studies at the best-in-class business schools the world
over. While the youthleader must appreciate these facets, he or
she must have a thorough understanding of the different strands
that go into the weave of India. The partition in the aftermath of
our freedomstruggle has left a scar, as has the divide in the
name of God. India is a country of extreme paradoxes. We
are reckoned as a nation of tremendous opportunities and, yet, it is
a reality thatIndia is a place of perpetual struggle. We have large tracts
of our country that have yet to witnessany economic advancement.
Threats:
Just a few years ago, the Aditya Birla Group bought over the cement
business of L&T for around ` 2,200 crore. L&T allowed its name to be
used for about a year. O.P. Puranmalka, GroupExecutive President,
Grasim Industries, and Chief Marketing Officer, observes that in a
veryshort time the company had to establish a new brand name in the
minds of the people and use theL&T mind space. The task was
Herculean. Explaining the strategy behind the new brand name,Mr.
Puranmalka said: "We wanted to capture the gene code of L&T
in the new brand name. Sowe commissioned research on customer
perception about the L&T Cement brand. Of course, wewere very sure
in our minds that L&T Cement epitomised engineering prowess,
technologyquality and
modernity."I n s t e p w i t h i t s g l o b a l a g e n d a , t h e c e m e n t b u s i n
e s s o f t h e A d i t y a B i r l a G r o u p , i s orchestrating a contemporary
brand makeover. With UltraTech Cement, the Aditya Birla Group has
established itself as not only the most respected domestic player
but also among the globalleaders in cement.