PRESENTED BY :

Industry & company profile

Research problem
Objectives
Data presentation & analysis
Findings
Suggestions
Some pitfalls
Conclusions

Indian cement industry

is currently ranked
second in the world.
Issues concerning
cement industry

INDUSTRY PROFILE

Intro.
Cement plants
Their capacity
Major competitors

COMPANY PROFILE

With that to find out the efficiency &

procedures of capital expenditure plans, comparing
actual plan with standard & finding out the
deviations, if any.

My research problem is to find out

accounts payable position of the company & how the
capital budgeting & forecasting is done in our
company, is there accounts payable processing system
efficient & adhere to accounting standard.

Pay what we owe

Reduce costs through
economies of scale
Consistent processing and
aging of payables
Improved invoice tracking
Efficient cash management
Finding out any defaults ,
if any.

ACCOUNTS PAYABLE :-

Define capital budgeting and

identify the steps involved in the
capital budgeting process.
Explain the procedure used to generate
long-term project proposals within the
firm.
Justify why cash, not income, flows are
the most relevant to capital budgeting
decisions
Describe how the net present value
contributes to increasing shareholders
wealth.
Explain how tax considerations, as well
as depreciation for tax purposes, affect
capital budgeting cash flows.

CAPITAL BUDGETING :-

5.

4.

3.

2.

1.

Definition
Difference between B/P & A/P
Passing of bills & Their types
Some of the movements & Their working
Tax treatment

ACCOUNTS PAYABLE

1.

Definition
2. Kinds of capital investment proposals
3. Factors affecting capital investment decision
4. Some of the methods:Pay back period
Discounted cash flow
Accounting rate of return

CAPITAL BUDGETING

Accounts payable is a short term source of finance.

Ambuja cement also has a very good accounts payable
position.
They have proper utilization & management of funds.
Management of time regarding payments are also very
efficient.
As we all know that this co. has started in 1981. So up till
now they have developed their forecasting & budgeting
techniques. They hardly have deviations in their budgets.
Their major share of budget for panvel branch is shipping
department

Here I would like to say that there are no such

deviation as far as technicality is concerned. But some
suggestion regarding working :
There should be a proper knowledge regarding the G/L
codes to all the staff of all the department ( everyone can
keep a sheet of paper where all G/L codes will be there).
There should be a more co-ordination & co-operation
among staff.
Apply for Just-In-Time concept in stores department, if
possible.
Avoid unnecessary stockings.
Try to reduce capex. on shipping department.

SAP system is the best system for internal control.

2. There could be a mutual agreement between
purchaser & supplier.
3. Above transaction will lead to hike in prices of raw
material as well as final product.
4. Due to SAP system & Holcim practices, purchase
manager has to ask for 3 tenders in market & choose
the best one to settle the competitive price for their
product.

1.

Accounts payable is a form of credit that suppliers offer to

their purchasers by allowing them to pay for a product or
service after it has already been received.
Accounts payable position of the company is good
(regarding payments are concerned).
Accounts payable & capital budgeting are very important
task for any organizations.
Capital budgeting is done for long term period say for 5 - 10
yrs.
Accounts payable is a short term source of finance.
From above findings & research, I would like to appreciate
the working system of ambuja staff & their dedication
towards work.