Kiran Sir Financial Performance Sagar Cements

CHAPTER-1
INTRODUCTION
INTRODUCTION
Financial analysis is the process of identifying the

financial strengths and weakness of the firm by properly
establishing relationships between the items of financial
statements viz: balance sheet trading account, and profit
&loss account.
Financial analysis assess the companys
operational efficiency and also learn about financial
position at the end of the accounting year.
Financial statement analysis largely a study of

relationship among the various financial factors in a
business as disclosed by a single set of statements as
shown in a series of statements.
Importance of financial analysis:

Investors in company effects are concern
principally with present and expected future earnings and
stability of this earnings about a trend, as well as they
covariance with the earnings of other companies. As a
result investors might concentrate their analysis on the
profitability of firm. They would be concerned with
financial condition.
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In so far its effects the ability of the company

to pay the dividends and to avoid bankrupt. in order to
bargain more effectively for outside funds , the
management of the firm should be interested in all
aspects of financial analysis that outside suppliers of
capital use in evaluating the firm. Management also
employs financial analysis for the purpose of internal
control.
In particular it is concerned with the

profitability on investment in the various assets of the
company and in the firm issues of the company and in the
firm issues various government regulators my use
financial analysis in particular regulatory agencies
concerned with the rate of return of a company earns on
its assets, as well as with the proportion of non-equity
funds employed in the business Thus, this type of
financial under taking varies according to the specific
interest of a financial statements analysis is the part of
larger information processing system of which informed
decisions can be based.
Comparative analysis are relationship expressed in a

mathematical forms between figures which are connected
with each other in same manner obviously; no purpose will
be served by comparing two steps of figures, which are
not at all connected with each other, more ever adequate
figures are also units for comparison.
Common size analysis is a simple arithmetic

expression of the relationship of one number to another .it
may be defined as the indicated requirements of two
mathematical expression .in simple language ratio
expressed in terms of another and can be worked out by
dividing one number to another.
NEED FOR THE STUDY

Financial Stmants HELPS ASSESS THE OPRETIONLE
and learn about the financial position of the business at
the end of the accounting period .
The accountant prepares a package of a financial
statements thats is trading, profit & loss account,
balance sheet
So the financial analyst depends primarly on
these statements to diognise financial performance the 3
main reasons of the financial analyst depends on the
statements
As long as accounting biases remain more or less the
same over time, meaning full inferences can be
drawn by examine trends in raw data and in financial
Ratios
Since similar biases characterize various firms in the
same industry, inter-firm comparisons are useful.
Experience seems to suggest that financial analysis
works if one is aware of accounting biases and makes
adjustments for the same
If properly analyzed and interpreted financial
statements is of interest to
o
o
o
o
Lenders(short term and long term lenders)

Investors
Security analysts
Managers and also it helps for assessing
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o
o
o
o
o
o
o
Corporate excellence
Judging
Credit worthiness
Valuing of equity shares
Forecasting bond rating
Predicting bankruptcy
Assessing market risk
Objectives of the study:

The basis of the financial statements
is to furnish information required for decision-making
It helps in assessing present and future runing

capacity profitability of concern .
It helps in determine the operations efficiency of
the firm as a hole and of it various departments
It helps in in assessing short term and long
term liquidity of the concern with is highly useful
to suppliers and founders.
It helps in in under taking a competitive study in
regional to one firm with another firm of same
concern over a period of years
It helps in identifying the resources for change
in the profitability and financial position of firm.
It helps in learning the financial stability of a
concern by the application of Ratio techniques.
It helps in understanding the significance of
financial data.
To provide reliable information about changes in

net resources of the activity.
Research methodology:
Methodology is a systematic procedure of
collecting information in order to analysis and Varity
a phenomenon, the collection is done through 2
principles sources viz;
i)Primary data.
ii)Secondary data.
i)Primary data:
It is information collected directly with out any

reference . in this study it was mainly interviews, with
concerned officers and staff, either individually or
collected some of the information had been verified
or supplemented conducting personal with
observations.
The data includes
Interviews with Sponge Iron Indian Limited
employees
Organition charts has been drawn through
observation
ii) secondary data:

The secondary data was collecting form
source such as pamphlets, annul reports , return and
internal records.
The data includes.
Collection of required data from the annual
reports of SAGAR CEMENTSLIMITED INDIA
LIMITED in house magazines, publication and
websites.
Reference from text books and journals relating
financial management
LIMITATIONS OF THE STUDY:
As the researcher as the project and period of
time consideration for analyzing the financial
performance is less, it is not possible to have
generalization the chance of errors in more.
As it is not the researcher direct observation but
a secondary sources of information provided by
the company.
It is dealing with very limited promoters for
evaluating desired objectives
It is majorly based on the secondary data
numbers.
CHAPTER-2
INDUSTRY PROFILE
CEMENT INDUSTRY
India, being the second largest cement producer in the
world after China with a total capacity of 151.2 Million
Tones (MT), has got a huge cement industry. With the
government of India giving boost to various infrastructure
projects, housing facilities and road networks, the cement
industry in India is currently growing at an enviable pace.
More growth in the Indian cement industry is expected in
the coming years. It is also predicted that the cement
production in India would rise to 236.16 MT in FY11. It's
also expected to rise to 262.61 MT in FY12.
The cement industry in India is dominated by around 20

companies, which account for almost 70% of the total
cement production in India. In the present year, the Indian
cement companies have produced 11 MT cement during
April-September 2009. It took the total cement production
in FY09 to 231 MT.
Cement industry, in any country, plays a major role in the

growth of the nation. Cement industry in India was under
full control and supervision of the government. However, it
got relief at a large extent after the economic reform. But
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government interference, especially in the pricing, is still

evident in India. In spite of being the second largest
cement producer in the world, India falls in the list of
lowest per capita consumption of cement with 125 kg. The
reason behind this is the poor rural people who mostly live
in mud huts and cannot afford to have the commodity.
Despite the fact, the demand and supply of cement in
India has grown up. In a fast developing economy like
India, there is always large possibility of expansion of
cement industry.
Global Scenario:
Local, national, regional and global entities,
involved in the manufacture and movement of cement and
clicker, are the constituents of the global cement industry.
The industry is a dynamic one, responding to changes in
multitude of variables- including macro- economic growth,
housing sector booms, public spending levels, trade
protectionism, and transportation costs-prevailing in the
respective countries. The cement capacity is dominated at
global level by a handful of multinational companies,
whose presence is increasingly felt in growing Indian,
Chines, Middle East and Latin America markets, as a result
of which the cement sector has become even more
globalisied in recent years. Due to this,
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National Scenario:
India witnessed the beginning of manufacture of

cement in an organized manner in the year 1914 when the
Indian cement company limited commenced its
manufacture of cement at its plant Porbundhar in Gujarat.
Since then the industry has come a long way to reach the
current position of beginning the second largest producer
of cement in the world, next in china.
There are nearly 125 large cements plants

and more than 300 small cement plants currently
operating in the country. This industry has also made
tremendous strides in technological up graduation and
assimilation of latest technology to produce different types
of cement like
Ordinary Portland cement

Portland pozzolana cement
Portland blast fyrnace slag cement
Oil well cement
Rapid hardening Portland cement
Sulphate resisting Portland cement
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White cement.
Presently, more than 90 percent of the total
capacity in the industry is based on modern and
environment-friendly dry process technology.
The positive developments have paved the way

for entry of multinational companies like holcim, cimpor
(of porugese), crh plc, vicat S.A of France into the Indian
cement industry, which has also attracted the attention
of global investors and fund managers like Blackstone,
Fidelity, ABNAmro ,HSBC, Nomura Asset Management
Fund and Emerging Market Fund. This trend will gain
further strengths as the industry is set to witness a
fastest growth with huge investments planned in the
Indian infrastructure both by government and private
sector, booming housing construction and expansion in
corporate production facilities
Company Scenario:
The year 2008-09 was a

momentous one for us at sagar cements for more then
one reason. It was during this year that the company
expand its capacity to 2.35 million tones, transforming
it self from being a mini cement plant to a major
cement plant. The expansion was completed with in a
recorded time, making optimum use of infrastructure
and other facilities available at the plant and at the
minimum cost.
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The expand plant employees vertical roller

mill technology and IKNP endulum cooler. FLS midth
automations QCX/ Robolab system has been installed in
the plant and SCL is one of the first few Indian
copaniess to implement such as a system.
This would ensure the best quality in lab

operations to facilitate high product quality which would
optimize overall plant operation
In the year 2008-09 sagar cements entered

into joint venture with VICAT S.A. CEMENT major and
the flog ship company of the globally known VICAT
group of France, to set up a green field cement plant of
5.5 millon tones capacity at CHATRASHALA village of
Chincholi Taluk in Gulbarg Dirstic of KARNATAKA
A separate entity under the name of VICAT
SAGAR CEMENT PRIVATE LIMITED has been formed for
the purpose, in rhe equity capital of which sagar and
vicat group will beholding 49% and 51% respectively
the acquisition of land for the project is nearing
completion.
HISTORY:
Sagar Cements Limited (SCL) is a Company of 25
Years standing, engaged in manufacture of Cement at its
Plant in Mattampally, Nalgonda District, Andhra Pradesh.
The Company is managed by a Board, whose

members are highly competent and well known. The
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Senior Management team consists of highly qualified

Professionals with rich experience in the area of their
Specialization.
The Company employs modern technology

in each of its process of manufacture at its Plant and has
adopted progressive manufacturing practices, whether it
relates to maintaining high standards of quality of its
products or development of its highly valued human
resources or the need to keep the pollution to the barest
minimum.
Sagar Cements has a consistent Profit

track record and, except for a few years when it was either
executing its expansion plans or the industry as a whole
was undergoing a difficult period, it has been declaring
dividend at reasonable percentages.
The companys Shares are listed on Hyderabad
and Bombay Stock Exchanges, where they are actively
traded.
The Company which started its operation with a

Cement capacity of 66000 TPA, has gradually increased it
to the level of 2.35 MTPA, while its Clinker capacity has
also witnessed a significant increase from 66000 TPA in
1982 to present level of 2.10 MTPA.
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Chapter-3
COMPANY PROFILE
PERSONAL:
VISION:
To provide foundation for society s future
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MISSION:
To be the Indian most respected and attractive

company in our industry creating value for all our
stockholders.
The vision and mission statements of SCL ltd is

to maintain leadership in cement industry and develop
complementary products and services to strengths core
business of bulding products by
fulfillment of market needs with cost effective

solution for ending and enhance customer
satisfaction
striving for excellence in all that we do
innovative solution to create world class products
and services
maintaing equitable balance between

developed and environmental needs of the society.
BACKGROUD OF THE COMPANY:
Chief Promoter
: Sri. S.Veera Reddy
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Other Promoters
: Sri. S.Annand Reddy
: Sri. S.Sreekanth Reddy
: Sri. O.Swaminatha Reddy
The corporate head office is located at

8-2-472/b/2 Road No-2
Banjara hills
Hyderabad-500034
Tel-040-23351571.
The manufacturing plant of cement is located at

Mattam pally (v)
Mattam pally (m)
Nalgonda (Dt)
Andhra Pradesh.
AREAS IN WHICH R&D CARRIED OUT BY

SAGAR CEMENTS LTD
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The following areas SCL is undertaking R&D
development of new products

Improvements in process efficiency
Usage of cost effective raw materials
Conservation of energy and water
Technology absorption
Reducting and recycling wastes
SCL mattsm pally units is having milestone

deposits zones for cement covering area 399.10 acres
viz
Mattam pally Nalgonda dt
Matta pally
Nalgonda dt
Gundla pally Nalgonda dt

Pedaveedu
Nalgonda dt
:169.05
:70.05
:100.00
:50.00
HUMAN RESOURCESS:
the plant has well qualified highly motivated

manpower of 359 employss on its rolls
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In cement unit 150 are Executive/ Administrative

cader, Skilled personnel(in staff& workmen caders) are109
and 100 of unskilled Labor worked in cement industry.
The scl Senior Management are also Encouraged to
attend seminars and conferences of professional bodies
as part of updating their skills.
The SCL mattampally manpower is known for their
Team spirit and Commitment.
POLLUTION CONTROLL:
Copany has an ESP system in place at its plant,

which keeps the pollution within acceptable levels.
CODE OF CONDUCT AND ETHICS FOR DIRECTORS

AND SENIOR MANAGEMENT TEAM
Sagar Cements being committed to be a good corporate
citizen conducts its business as per the applicable laws,
rules, regulations and statutory guidelines as are in force
and with highest standards of business ethics.
PROMOTING INTEREST OF THE COMPANY

Directors and Senior Management Team owe a duty to the
company to promote its legitimate interests when the
opportunity to do so arises. They should not use
company's property, information or position for personal
gains. All Directors and Senior Management Team of the
company must strive to perform their best at all times.
INTEGRITY AND HONESTY
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The Directors and Senior Management Team shall act in

accordance with the highest standards of personal and
professional integrity, honesty and ethical conduct. They
shall act and conduct free from fraud and deception. Their
conduct shall conform to the professional standards of
conduct
HEALTH, SAFETY, ENVIRONMENT AND SOCIAL

RESPONSIBILITY
Sagarsoft shall strive to provide a safe and healthy
working environment and comply with all regulations
regarding the preservation of the environment in and
around its manufacturing facilities and other points of
operations. The companies is committed to efficient use of
natural resources and minimize any hazardous impact of
the development, production, use and disposal of any of
its products and services on the ecological environment.
FINANCIAL REPORTING AND RECORDS
As the professional and ethical conduct in the matter of
financial affairs is essential for the proper functioning of
the company, the officers and employees engaged in the
finance functions should act with honesty and integrity.
The persons in-charge of finance and accounting function
should prepare and maintain companys accounts fairly
and accurately in accordance with generally accepted
guidelines, principles, standards, laws and regulations
applicable to the company. Internal accounting and audit
procedures shall fairly and accurately reflect all of the
company's business transactions and disposition of assets.
There shall be no willful omissions of the company
transactions from the books and records. Any willful
material misrepresentation or misinformation on the
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financial accounts and reports shall be regarded as a

violation of this code.
PROTECTING COMPANY ASSETS

The assets of the company should not be misused but
employed only for the purpose of conducting the business
for which they are authorised. All Directors and members
of the Senior Management Team should strive to protect
company's assets and property and ensure efficient use of
them.
Products
Cement is the basic and the most widely used building
material. Twice as much Cement/Concrete is used
worldwide than all other Building Materials.
A Mixture of Limestone and Clay is ground and burnt at a
very high temperature to form Clinker. The Clinker is
ground to a fine powder with addition of Gypsum ( up to 5
%) to form Cement. The essential components of Cement
are Lime, Silica, Alumina and Iron Oxide.
53 Grade OPC
53 Grade OPC is a higher strength cement to meet the
needs of the consumer for higher strength concrete.
53 Grade OPC can be used for the following
applications.
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+ RCC works(Preferably where grade of concrete is M-25

and above)
+ Precast concrete items such as paving blocks, tiles
building blocks etc.
+ Pre-stressed concrete components
+ Runways, concrete Roads, Bridges et
43 Grade OPC
The 43 grade OPC is the most popular general-purpose
cement in the country today. The production of 43 grade
OPC is nearly 50% of the total production of cement in the
country.
43 Grade OPC can be used for the following
applications.
+ General Civil Engineering construction work.
+ RCC works(preferably where grade of concrete is up to
M-30).
+ Precast items such as blocks, tiles, pipes etc.
+ Asbestos products such as sheets and pipes.
+ Non-structural works such as plastering, flooring etc.
33 Grade OPC
This cement is used for general civil construction work
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under normal environmental conditions.

This cement is used for general civil construction work
under normal environmental conditions. The compressive
strength of cement after 28 days test as per BIS
specification is 33 MPa. Due to low compressive strength,
this cement is normally not used where high grade of
concrete viz, M-20 and above is required. The availability
of higher grades of OPC in the market impacts the usage
of 33 grade OPC as these days 43 grade OPC is normally
used for general construction work. This grade of cement
is more useful for mass concreting and plain cement
concreting and can also be used for plastering and single
storied individual houses.
Portland Pozzolana Cement (PPC)

Portland Pozzolana Cement is a kind of Blended Cement
which is produced by either intergrinding of OPC clinker
along with gypsum and pozzolanic materials in certain
proportions or grinding the OPC clinker, gypsum and
Pozzolanic materials separately and thoroughly blending
them in certain proportions.
Portland Pozzolana Cement is ideally suited

for the following construction:
+
+
+
+
+
+
Hydraulic structures.
Mass concreting works.
Marine structures.
Masonry mortars and plastering.
Under aggressive conditions.
All other applications where OPC is used.
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+ The compressive strength of PPC as per BIS

code at present is equivalent to that of 33
grade OPC.
CONTRIBUTION TO THE EXCHEQUER:
SCL Mattam pally has been contribution around of Rs

525.10 Lakhs to the exchequer in the form of Taxes,
Royalties etc
TOWNSHIP:
SCL Mattam pally has a well-planned township

consisting of 400 quarters having facilities like
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SCHOOL
HOSPITAL
TEMPLE
GUEST HOUSE
CO-OPERATIVE STOERS
RECREATION CLUB PLAY GROUND
RURAL DEVOLPMENT:
SCL Mattam pally as apart of rural development

programme adopted 8 surrounding villages. The company
extends the facilities like.
HOUSING
WATER
SCHOOL
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OLD AGE PENSION

ROADS
By allocating a budget amount of about b Rs
45.00 Lakhs per annum
NORMS:
Raw mill clinker cement lime stone -96%, Irone ore

-2.5%, Late rate -1.5% Raw mill -1.5%, Coal -20%, Clinker
-97%, Gypsam -3%.
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BOARD OF DIRECTORS OF SAGAR CEMENTS LIMITED
SI.N
O
1
NAME OF THE DIRECTOR

SHRi O.Swaminatha Reddy
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CATEGORY OF THE
DIRECTOR
Independent & Non
Executive
SHRi S.Veera Reddy Managing Director

SHRi S.Annand Reddy, joint managing
Director
SHRi S Sreekanth Reddy. Execute
Director
SHRi K.Thanu pillai
SHRi Werner C.R.POOT
SHRi V.V.S Ravindra(IDBI)
Non- Independent &

Executive
Non- Independent &
Executive
Non- Independent &
Executive
Independent & Non
Executive
Non- Independent & Non
Executive
Independent & Non
Executive
SHRi P.Rajeswara Rao(APIDC Naminee)
Non Executive & NonIndependent
2
3
Financial performance with respect to the operational

performance
2009-10
2008-09
Total Income
33507
27562
PBIDT
5985
5759
Deprection
1872
413
Financal Charges
1590
340
PBT
2524
5006
PAT
1646
3096
Particulars
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EPS(Rs)
11.48
QUICK
VIEW
DEVOLPMENT
CEMENTS LIMITED.
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23.70
OF
SAGAR
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CHAPTER-4
THEORITICAL FRAME
WORK
.
DEFINITION:
In the words mery financial statements analysis
is largely a study of relationships among the various
financial factors in business as disclosed by a single set of
statements and a study of the trend of these factors
shown in a series of statement.
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According to met calf and Tetrad analyzing financial

statements analysis is process of evaluating the
relesationship between component parts of financial
statements to obtain on better understanding of a firm
position and performance .
The purpose of financial is to diagnose the
information contained in financial statements as to judge
the profitability and financial sound of the firm.
NATURE OF FINANCIAL STATEMENT ANALYSIS:

The financial statements s by nature are
summary of the stamens recorded in the business and
these statements are prepared periodically generally the
accounting period.
According to jhan N.Myer the financial
statements are composed of data which are the results of
combination of
1. Recorded facts concerning the business transactions
2. conversion adopted to facilitate the accounting
techniques
3. postulates or assumptions mode to end
4. personal judgment used in the application of the
conversions and postulates
TYPES OF ANALYSIS:
Two types of analysis are undertaken to interpret the
position of the enterprise. They are
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1)Vertical analysis
2)Horizontal analysis
Vertical analysis:
It is analysis of relationship between different

individual components and in the analysis between these
components and their totals for a given a period of time.
Such analysis examines only the relationship as between
different components for a given point of time and does
not shed light on changing the behavior of the above
relationship.
It is also regarding as static analysis
,comparison of current assets to current liabilities or
comparison of debt to equity for one point of time or
examples of vertical analysis.
Use of financial tools:

Financial tools are of immense se use to a
finance manager in as such as they help him in carrying
out his planning and controlling functions. While preparing
financial plan for the company finance.
Financial tools are of of immense

Use to a finance manger in as such as they help him in
carrying out his planning and controlling functions while
preparing financial plans for the company finance
manger must know the input of financial decision on
financial condition and profitability of the business
enterprise
The tool of financial serve as hand made to the

management in determine the input of his decision .
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These tools are equality useful in the sphere of financial

control and as much as they enables the finance manger
to undertake constant review of the actual financial
operations of the company. As a whole and of various
divisions of the company against the perform balance
sheet and profit and loss account to analyze the cause of
major deviations as to take corrective before it is tool..
The help of financial tools the financial
management can rationalize the decisions and reach the
business good Easley . the utility of the financial tools is
not limited to the finance manager . they are equally
helpful to top management creditors, investors and
laborers ..
TECHNIQUES OF ANALYSIS:
An analyst can adopt the fallowing tools for
analyzing for the financial statements .
Comparative statement analysis

Common size statement analysis
Trend analysis funds flow information.
Ratio analysis
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COMPARATIVE STATEMENT ANANLYSIS:

Comparative financialstatement are those
statements which statements which are designed to
provide the prospective to the consideration of various
elements of financial position embodied in such
statements and balance sheet can be prepared in the
form of comparative statements
COMMANSIZE STATEMENT ANALYSIS:

Common size statement is financial tool of
studying key changes and trends in financial position of
the company. In common size statements each item is
stated as a percentage exbits the relation on the
individual item of its respective total.Therefore the
common size percentage method represents a type of
ratio analysis.
TREND NANLYSIS:
Trend analysis depicts behavior of the ratios over
a period of the time and the trends in the operations of
the enterprise. The trend analysis figers are index
figers giving a bird s eye of the comparative data by
presenting it over a period of time. This is a horizontal
analysis of statements, often called as a pyramid
method of ratio analysis..
FUNDS FLOW STATEMENT:

Funds flow statements is similar is also
known as statement of sources and application of funds
or statements of inflow and outflow of funds .
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CASH FLOW STATEMENT:

A cash flow statement is similar in
design to funds flow statements, boath the statement
are prepared from the data viz, the balance sheets of
the concern and additional information made available
boath the statements focus on the financial position of
the concern.
RATIO ANALYSIS:
Ratio analysis is one of the method of analyzing
financial statements. It measure the profitability
efficiency and financial sources of the business.
The relationship between 2 facts ,gross profit
and sakes or currency assets and current liabilities is
studied and the result is presented in the form of simple
ratios
FINANCIAL STATEMENTS ANALYSIS;

The end products of the business
transactions are financial statements comparing the
position statements or balance sheet and income
statement or profit and loss account. Financial
statements are the basis for decision making by the
management and as well as all other out siders who are
interested in the afire of firm such as investors,
creditors ,customers, suppliers, financial institutions,
employee, potential investors ,government and general
public
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Meaning of financial statements

analysis:
A financial statement is a collection of data
organized according to logical and consist ant accounting
procedures. Its purpose is to convey on on understanding
of some financial aspects of business firms .these the
financial statements generally refer to the two
statements..
The position statements or balance sheet
The income stat met or the profit and loss account
In the words of John N.mayer The financial statements
provide a summery of the accounts of a business
enterprise, the balance sheet reflecting the assets
,liabilities and capital as on a certain date and the income
statement showing the results of operations during a
certain period.
Financial statements are also called financial reports in the
words of Anthony Financial statements essentially are
interim reports presented annually and reflect a division of
the life of on enterprise in to more or less arbiters period
more frequently a year
RECORDING FACTS:
The term recording facts refer to the data taken
out form the accounting records are maintained by on the
basis of the actual cost data.. the original cost or
historical cost is the basis of recording various facts or
events or transactions..
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Use and importance of financial staments:

The financial statements are
mirror which reflect the financial position and operating
and strengths or weakness of the concern these
statements are useful to the management investors
creditors bankers ,workers, government ,and public at
large
George omey points out the fallowing major uses of

financial statements.
As a report of steward ship
As a basic for fiscal policy
As a determine the legality of dividends
As a guide to advice dividend action
As a basic for the granting of credit
As information for prospective investor in an
enterprise
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As a guide to the value of investor s in an

enterprise.
As a guide to the value of investment already
made..
As an aid to govt supervision
As a basis for taxation
Limitations of financial statements

Through financial statements are relevant and useful
for the cocern, still they do not present a final picture of
the concern
The analysis and interpretation of these statements
should be done very carefully. Otherwise misleading
conclusion may be drawn.
The financial statements sufficient and final
reports
Only in term reports and final reports

Lack of precision and definiteness
Lack of objective judgment.
Record only monetary facts.
Historical in nature.
Scope of manipulation, inadequate
information
Analysis and interpretation:
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The analysis and interpretation of firm

statement is essential to bring out the my statements
behind the figures in financial statements . the term
financial statements analysis includes other analysis and
interpretation. A distinction should be made between the
two terms.
The term analysis is used to mean the
simplification financial data by methodalic classification of
the data given in the financial statements the term
interpretation means E employing the meaning and
significance of the simplified
However the both analysis and interpretation are
inter linked and complimentary to each other
In the words of KENDEY and MEMULLAR The

analysis and interpretation of financial statements are an
attempt to determine the significance nd meaning of the
financial statements data .so the at forecast may be made
of the prospect for future earnings ability to pay interest
and debt maturities and profitability of sound dividend
policy
Techniques/Tools/Devices/Methods of
ananlysis:
To analyze and interpret the financial statements
numbers of techniques can be used those are
Comparative statements.
Common size statements
Trend projection method
Funds flow analysis..
Cash floe analysis..
Ratio analysis
40
The above methods are used to analyze the

company liquidity position or cash position . in these
model we taken the comparative statements and
know the liquidity position of the sagar cements
limited.
Comparative statements:
The comparative statements are statements of
the financial position at different periods of time. The
elements are shown in comparative form so as to give and
idea of financial position at two or more periods any
statements prepared in a comparative statements/ form
partial point of view generally two financial purpose not
only the comparison of the figures of two periods but also
be relationship between balance sheet and income
statement enables in depth study of financial position
and operative results the comparative statements may
show
Absolute figures(rupees amounts).

Changes in absolute figers i.e. increase decrease in
absolute figures ..
Absolute data in terms of percentages
The analysis is able to draw useful conclusion when
figures are given in comparative position. The figures of
sales for a quarter , half yearly or one year may tell only
the present position of the sales efforts. When sales
figures of analysis will be able to study the trends of sale
over different periods of time. Similarly comparative
figures will indicated the trend and direction of financial
position and operating results..
41
The financial data will compared only when same

accounting principals are used in preparing the
statements in case of any deviation in use of using
accounting principal this fact must be maintained at the
analyst should be careful in using these statements are..
1)Balance sheet
2)Income statement
COMPARATIVE BALANCE SHEET:

THE COMPARATIVE BALANCE SHEET ANALYSIS is
the study of the trend of the same items, group of items
and compared items in two or more balance sheets of the
same business enterprise on different dates. the changes
in periodic balance sheet items reflected the conduct of
the business. The changes can be observed by
comparison of the balance sheet of the beginning and at
the end of a period and these changes can help in forming
and opinions about the progress of an enterprise. A third
column used to show increase in figures.
The forth column may be added for giving percentage
of increase or decrease.
Main page:
The assets are given under the fallowing balance sheet
items..
ASSETS SIDE
1)Fixed assets:
The fixed assets are those which are purchased for
the purpose of use over a long period. These assets meet
to increase production capacity of the business, they are
42
not acquired for sale but are used for a considerable

period of the time.. the balance sheet is prepared to
shown financial position of the concern. This assets should
be shown in such away that balance sheet depicts true
financial position of the business . fixed assets are shown
distinctly from each other .e.g. Good will land and
buildings, lease holdsetc these assets are shown at their
original cost any additions and deduction during the
year are shown separately. The amount of depreciation up
to the previous year and the during the current year is
separately deducted from the assets
2)Investments:
Investments are shown by giving their nature and
mode of valuation investments under various sub heads
such as investments in govt or trusty securitys in shares,
debentures and bonds and immovable properties are
given separately in the separate column of the balance
sheet..
3)Current assets:
According to alxander wall current assets are
such assets as in the ordinary and natural course of
business more on word through various the various
process of production, distribution and payment of
goods, until they become cash or its equivalent by which
debts may be readily and immediately paid current
assets are either cash in hand and cash at banks or
shortly convertible into cash. The assets like debtors and
bills receivables are non step way from cash. The stock
in trade is considerable to be two steps way from cash
because first sales will be made and then collection will
be undertaken . the commonly used method of
43
valuation.. i.e. cost or market price whichever is low .this

is done to avoid anticipating profits during inflationary
conditions and on the other hand taking into account
losses. If there is a fall in prices of stock. The debtors if
more than six months old are separately given.. the
amount owed by directors etc.. if include in debtors, are
also separately mentioned
4)Miscellaneous Expenditures:
We show defer expenditure under this heading.
These are the expenses which are not debited fully to the
profit and loss account of the year in which they have
been incurred. These expenses are spred over a number of
the years and the unwritten balance is shown in the
balance sheet.. the items on issue of shares or debentures
interest paid out of capital during construction etc..
LAIBILTIES SIDE ITEMS:

1)Share capital:
The share capital is shown as a first item an
the liabilities side of the balance sheet. Authorized and
issued capital is shown giving the numbers of shares and
their amount. The number of shares and their amount. The
number of shares for which public has applied are
mentioned along with the type of capital. i.e. preference
,share capital, equity share capital.. if the capital is issued
for the other than cash. The amount of such capital is
mentioned. The fact of issued bones shares is also
mentioned any unpaid calls are deducted from the called
up capital.. if forfeited shares are re issued then this
amount is added to the paid up capital..
2) Reserved and surplus:

44
Under this heading all those reserves which have

been created undistributed profits are shown. Capital
reserves are those reserves, which are not free for
distribution as profits where as revenues reserves are
created out of apportion of profits various items included
here as ..
a) Capital reserve
b) Capital redemption
c) Share premium account
d) Other reserves
e) Surplus .i.e. profit and loss account
f) Proposed addition to reserves
g) Sinking fund
The additional and deduction since last balance
sheet be shown under each head. The word fund in
relation to any reserve should be used only where such
reserves is specifically represented by earn more
investments..
3)Secured loans:
All those loans against which securities are given are
shown under this category. Debenture are shown under
this heading loans and advances from banks ,subsidiary
companies etc.. should be shown separately and the
nature of securities should also be mentioned..
4)Unsecured loans:
These are the loans and advances security ,the
items included here are deposits, loans from banks and
others are also shown in they category. Short term loans
include those are year on the date of the balance sheet.
45
.as regard loans from directors, managers etc.. these

should be shown separately under different sub-headings.
5)Current liabilities and provisions:

These are divided into
a) current liabilities
b) provisions
a)current liabilities:
Acceptance
Sundry creditor
Subsidiary companies
Advance payment and expired discounts
Unclaimed dividends
Other liabilities if any
Interest accurd but not paid on loans
b)provisions;
following items are included under provisions
Provisions for taxation
Proposed dividends
Provisions for provident fund scheme
Provision for insurance, pension and staff benefits
schemes
Other provisions
46
COMPARATIVE BALANCE SHEET PROFORMA

YEAR ENDING
PARTICULARS
INCRESE/DECRES
E
(AMOUNT)
INCRESE/DECRESE
(PERCENTAGE)
(RS)
(RS)
---
---
---
---
a)Inventories
---
---
---
---
b)sundry Debtors
---
---
---
---
c)Cash and Bank balance
---
---
---
---
d) Other Current Assets
---
---
---
---
e)Loans and Advancess
---
---
---
---
Total current Assets (A)
---
---
---
---
II) Fixed Assets
---
---
---
---
a)Net block of assets
---
---
---
---
b)Investments
---
---
---
---
c)work in progress
---
---
---
---
Total Fixed Asset(B)
---
---
---
---
Total Misc Expenditure (C)
---
---
---
---
Total Fixed Assets (A+B+C)
---
---
---
---
LIABILITIES
I)Share holders fund
---
---
---
---
---
---
---
---
a)Capital
---
---
---
---
b)Reserves &Surplus
---
---
---
---
Total Share holders Fund (A)
---
---
---
---
II)Long Term Liabilities
---
---
---
---
a)secured loans
---
---
---
---
b)Un secured loans
---
---
---
---
c)Defferd Tax
---
---
---
---
d) creditors for long term
---
---
---
---
Total Long Term Liabilites (B)
---
---
---
---
Current Laibilites& Provisions
---
---
---
---
a)Liabilities
---
---
---
---
ASSETS
I)Current Assets
47
b)Provisions
---
---
---
---
Total Current Liabilities (C)
---
---
---
---
TOTAL LIABILITES (A+B+C)
---
---
---
---
COMMON SIZE BALANCE SHEET PROFORMA

PARTICULARS
YEAR
ASSETS
I)Current Assets
a)Inventories
b)sundry Debtors
II) Fixed Assets
b)Investments
c)work in progress
LIABILITIES
a)Capital
b)Reserves &Surplus
a)secured loans
b)Un secured loans
c)Defferd Tax
a)Liabilities
b)Provisions
48
PERCENTAG
E
YEAR
PERCENTAGE

GUIDELINES FOR INTERPRETATION OF COMPARATIVE

BALANCE SHEET:
While
interpreting comparative balance sheet the

interpreter is expected to study
the
fallowing aspects
1) Current financial position and liquidity position
2) Long-term financial position
3) Profitability of the concern
Common size statement:

The common size statements, balance sheet and
income statements are shown in analytical percentages. The
figures are shown as a percentages of total assets, total
liabilities and total sales. The total assets are taken as 100 and
different assets are expressed as a percentage of the total.
Similarly ,various liabilities are taken as apart of the total
liabilities. these statements are also known as a component
percentage of 100 percentage statements because every
individual items could not be compared with the total has been
cover up. The analyze is able to assess the figures in relation
to total values. The common size statements may be prepared
in the following way.
1) The total of assets or liabilities are taken as 100
2) The individual assets are expressed as a percentage
of total assets i.e. 100 and different are calculated in
relation to total liabilities .for example, if total assets
are Rs. 5Lakes and inventory values is Rs.50000 then
it will be 10% of total assets.
49
CHAPTER-5
DATA ANALYSIS
AND
INTERPRETATION.
50
COMPARATIVE BALANCE SHEET OF SAGAR CEMENTS LIMITED

FOR THE ASSESSMENT YEAR 2008-09 AND 2009-10
(Rupees in Lakhs)
2008-09
2009-10
INCREASE/DECREA
SE
PERCENTAGE
a)Inventories
750.49
42531.32
3502.83
466.73
b)sundry Debtors
538.82
2492.94
1954.17
362.67
686.48
1122.04
435.56
63.47
4632.06
4742.05
109.99
2.374
6607.85
12610.35
6002.5
90.83
9794.45
37146.47
27352.02
279.26
b)Investments
279.99
1779.99
1500
535.73
c)work in progress
20589.64
777.09
-19812.55
96.22
30663.98
39723.55
9059.57
29.54

LIABILITIES
a)Capital
37271.83
52333.90
15062.07
40.41
1382.26
1500.23
111.97
8.06
b)Reserves &Surplus
9143.30
17721.98
8578.68
93.82
10531.56
19222.21
8690.65
82.52

a)secured loans
20379.88
24026.46
3646.58
17.89
34.24
59.22
24.98
72.95
1151.03
1387.56
22952.71
2020.85
1230.88
27337.41
869.82
-156.68
4384.7
75.56
11.29
19.10
a)Liabilities
2155.77
5015.13
2859.36
132.69
b)Provisions
1631.87
739.13
-892.74
-54.70
PARTICULARS
ASSETS
I)Current Assets
II) Fixed Assets
b)Un secured loans

c)Defferd Tax
51
3787.64
5754.26
1966.62
51.92
37271.83
52333.90
15062.07
40.41
INTERPRETATION:
The Net Fixed Assets in 2008-09 is 9794.45 and

2009-10 is 37146.47 i.e .there is increase of 279.26
%in Fixed Assets.
There has been arising in Current Assets 90.83% of

the company. The rise mainly on amount increase
in Inventorys . The company might have changed it
credit policy and list future liquidity position will be
dependent on credit management.
Long term liability are in 2008-09 are 22951.71 and

in 2009-10 is 27337.41 there is increase 19.10%
The profitability of the company appears to be good

impressive as judged by 93.82% increase in
Reserves and surplus.
The overall financial position of the company

appears to be satisfactory.
52

(Rupees in Lakhs)
2007-08
2008-09
INCREASE/DECREA
SE
PERCENTAGE
a)Inventories
663.79
750.49
86.7
13.06
b)sundry Debtors
824.76
538.82
-283.94
-34.66
1594.56
686.48
-908.08
-56.94
PARTICULARS
ASSETS
I)Current Assets
2433.17
4632.06
2198.98
90.37
5516.28
6607.85
1091.57
19.78
4351.88
9794.45
5442.57
125.06
b)Investments
279.89
279.99
0.10
c)work in progress
3412.99
20589.64
17176.65
503.27
8044.76
30663.98
22619.22
281.16

LIABILITIES
a)Capital
13561.04
37271.83
23710.79
174.84
1376.83
1382.26
11.43
0.83
b)Reserves &Surplus
5988.56
9143.30
3154.74
52.68
7356.39
10531.56
3166.17
42.98

a)secured loans
2294.84
20379.88
18085.04
788.07
b)Un secured loans
139.52
34.24
-105.28
75.45
c)Defferd Tax
845.16
1151.03
305.87
36.19
d)Creditors for long term
27.28
1387.56
1360.28
4986.36
3306.85
22952.71
19645.86
594.09
II) Fixed Assets
53

a)Liabilities
1711.75
2155.77
444.02
25.93
b)Provisions
1072.92
1631.87
558.95
52.09
2784.67
3787.64
1002.97
36.01
13561.04
37271.83
23710.79
174.84
INTERPRETATION:

2008-09 is 9794.45 i.e. there is increase of 125.06
%in Fixed Assets.
There has been arising in Current Assets 19.78% of

in Loans and Advances . The company might have
changed it credit policy and list future liquidity
position will be dependent on credit management.
Long term liability are in 2007-08 are 3306.85 and in

2008-09 is 22952.71.there is increase 594.09%


54

(Rupees in Lakhs)
2006-07
2007-08
INCREASE/DECREA
SE
PERCENTAGE
ASSETS
I)Current Assets
a)Inventories
b)sundry Debtors
665.19
914.51
663.79
824.76
-1.4
-89.75
-0.21
9.81
121.02
1594.56
1473.54
1217.60
PARTICULARS

837.41
2433.17
1595.76
190.55

II) Fixed Assets
2538.13
5516.28
2978.15
117.33
3876.14
4351.88
475.74
12.27
b)Investments
279.89
279.89
c)work in progress
69.03
3412.99
3343.96
4844.2
4225.06
8044.76
3819.7
90.40
6763.19
13561.04
6799.86
100.00
115.23
1370.30
2485.53
1376.83
5988.56
7356.39
261.6
4618.26
4879.86
23.45
337.02
196.33
a)secured loans
1120.16
2294.84
1174.68
104.86
b)Un secured loans
873.82
139.52
-734.3
-84.03
c)Defferd Tax
813.66
845.16
31.5
3.87
27.28
27.28
27.28

LIABILITIES
a)Capital
b)Reserves &Surplus
55
2807.64
3306.85
499.21
17.78
a)Liabilities
1307.93
1711.75
403.82
30.87
b)Provisions
162.11
1072.92
910.81
561.84
1470.04
2784.67
1314.63
89.42
6763.19
13561.04
6799.86
100.00
INTERPRETATION:

2007-08 4351.88i.e.there is increase of 12.27%in
Fixed Assets.
There has been arising in Current Assets 117.33 of

in Cash and Bank balances. The company might
have changed it credit policy and list future liquidity
position will be dependent on credit management


56
COMPARATIVE BALANCE SHEET OF SAGAR

CEMENTS LIMITED
(Rupees in Lakhs)
PARTICULARS
ASSETS
I)Current Assets
a)Inventories
b)sundry Debtors
II) Fixed Assets
b)Investments
c)work in progress
LIABILITIES
a)Capital
b)Reserves &Surplus
a)secured loans
b)Un secured loans
c)Defferd Tax
2005-06
2006-07
INCREASE/DECREA
SE
PERCENTAGE
660.20
800.25
111.05
0
830.45
2301.95
665.19
914.51
121.02
837.41
2538.13
4.99
1.14
9.97
0
6.96
23.06
0.75
0.14
8.97
0
0.83
1.00
2870.05
269.89
65.04
3204.98
0
5606.93
3876.14
279.89
69.03
4225.06
0
6763.19
1006.09
10
3.99
1020.08
0
1043.14
35.05
3.70
6.31
31.82
0
18.60
115.23
1390.30
1505.56
115.23
1370.30
2485.53
0
-20
-20
0
1.4
-1.32
1100.25
800.35
792.71
0
1120.16
873.82
813.66
0
19.91
73.47
20.95
0
1.8
9.18
2.6
0
57
2693.31
2807.64
1157.47
42.97
a)Liabilities
b)Provisions
1250.05
158.04
1408.09
1307.93
162.11
1470.04
57.88
4.07
61.95
4.6
2.5
4.40
5606.93
6763.19
1043.14
18.60
INTERPRETATION:
The Net Fixed Assets in 2005-06 is 2870.05and

2006-07 3876.14 i.e.there is increase of 35.05% in
Fixed Assets.
There has been arising in Current Assets 23.06 of

in Cash and Bank balances. The company might
have changed it credit policy and list future liquidity
position will be dependent on credit management

impressive as judged by 19.91% increase in Secured
loans.

58
COMMON SIZE BALANCE SHEET OF SAGAR CEMENTS LIMITED

FOR THE ASSESSMENT YEAR 2008-09AND 2009-2010
(Rupees in Lakhs)
2008-09
PERCENTAG
E
2009-10
PERCENTAGE
a)Inventories
750.49
2.01
42531.32
8.12
b)sundry Debtors
538.82
1.44
2492.94
4.76
686.48
1.84
1122.04
2.14
4632.06
12.43
4742.05
9.06
6607.85
17.72
12610.35
24.09
9794.45
26.28
37146.47
70.97
b)Investments
279.99
0.75
1779.99
3.44
c)work in progress
20589.64
55.24
777.09
1.48
30663.98
82.27
39723.55
75.90

LIABILITIES
37271.83
100.00
52333.90
100.00
PARTICULARS
ASSETS
I)Current Assets
II) Fixed Assets
59
a)Capital
1382.26
3.72
1500.23
2.86
b)Reserves &Surplus
9143.30
24.53
17721.98
33.86
10531.56
28.26
19222.21
36.73
20379.88
54.68
24026.46
45.91
34.24
0.09
59.22
0.11
c)Defferd Tax
1151.03
3.62
2020.85
2.35
1387.56
3.72
1230.88
3.86
22952.71
59.16
27337.41
52.23
a)Liabilities
2155.77
5.78
5015.13
9.58
b)Provisions
1631.87
4.38
739.13
1.41
3787.64
10.16
5754.26
10.99
37271.83
100.00
52333.90
100.00

a)secured loans
b)Un secured loans
INTERPRETATION:
In 2008-09 is more traditionally financed as

compared to 2009-10. in 2008-09 share capital
consists of 28.26 of total investment. while the
percentage is 36.73% in 2009-10 the company
share holder funds are increased by compare
then previous year.
In the both the year the company has followed

the policy of financing fixed assets from Long
term funds. In the year 2008-09 investments in
fixed assets are 26.28%.which long term funds
59.21%.the figure in 2009-10 were 70.97% and
52.23% these from Long term sources.
The working capital of the company is good in

both years. The current assets compares of
17.72% and current liabilities are 10.16%. in the
60
year 2009-10 current assets are 24.09% and

current liabilities are 16.19%. the working
capital of the company in the year 2008-09 is
much better than year 2009-10
The analysis of various figures shown that the

Long- term and Short term financial position is
satisfactory.

FOR THE ASSESSMENT YEAR AN2007-08 and 2008-09
(Rupees in Lakhs)
2007-08
PERCENTAG
E
2008-09
PERCENTAGE
a)Inventories
663.79
4.89
750.49
2.01
b)sundry Debtors
824.76
6.08
538.82
1.44
1594.56
11.76
686.48
1.84
PARTICULARS
ASSETS
I)Current Assets

2433.17
17.94
4632.06
12.43
5516.28
40.67
6607.85
17.72
4351.88
32.09
9794.45
26.28
b)Investments
279.89
2.06
279.99
0.75
c)work in progress
3412.99
25.17
20589.64
55.24
8044.76
59.32
30663.98
82.27
13561.04
100.00
37271.83
100.00
II) Fixed Assets
61
LIABILITIES
a)Capital
b)Reserves &Surplus
a)secured loans
1376.83
5988.56
7356.39
10.15
44.16
54.13
1382.26
9143.30
10531.56
3.72
24.53
28.26
2294.84
16.92
20379.88
54.68
b)Un secured loans
139.52
1.03
34.24
0.09
c)Defferd Tax
845.16
6.23
1151.03
3.62
27.28
0.23
1387.56
3.72
3306.85
24.38
22952.71
59.16
a)Liabilities
1711.75
12.62
2155.77
5.78
b)Provisions
1072.92
7.91
1631.87
4.38
2784.67
20.53
3787.64
10.16
13561.04
100.00
37271.83
100.00

INTERPRETATION:

then previous year.

24.38%.the figure in 2008-09 were 26.28% and
59.21% these from Long term sources.
62


satisfactory.

FOR THE ASSESSMENT YEAR2006-07 AND 2007-08
(Rupees in Lakhs)
2006-07
PERCENTAG
E
2007-08
PERCENTAGE
a)Inventories
665.19
9.83
663.79
4.89
b)sundry Debtors
914.51
13.52
824.76
6.08
121.02
1.78
1594.56
11.76
837.41
12.38
2433.17
17.94
2538.13
37.52
5516.28
40.67
3876.14
57.31
4351.88
32.09
b)Investments
279.89
4.13
279.89
2.06
c)work in progress
69.03
1.02
3412.99
25.17
PARTICULARS
ASSETS
I)Current Assets
II) Fixed Assets
63
4225.06
62.47
8044.76
59.32
6763.19
100.00
13561.04
100.00
115.23
1370.30
2485.53
16.49
20.26
36.75
1376.83
5988.56
7356.39
10.15
44.16
54.13

a)secured loans
1120.16
16.56
2294.84
16.92
b)Un secured loans
873.82
12.92
139.52
1.03
c)Defferd Tax
813.66
12.03
845.16
6.23
27.28
0.23
2807.64
41.51
3306.85
24.38
a)Liabilities
1307.93
19.54
1711.75
12.62
b)Provisions
162.11
2.39
1072.92
7.91
1470.04
21.73
2784.67
20.53
6763.19
100.00
13561.04
100.00

LIABILITIES
a)Capital
b)Reserves &Surplus

INTERPRETATION:

then previous year.

41.51%.the figure in 2007-08were 32.09% and
38% these from Long term sources.
64


satisfactory.

(Rupees in Lakhs)
2005-06
PERCENTAG
E
2006-2007
PERCENTAGE
a)Inventories
660.20
11.77
665.19
9.83
b)sundry Debtors
800.25
14.27
914.51
13.52
11.05
1.98
121.02
1.78
830.45
14.81
837.41
12.38
2301.95
42.83
2538.13
37.52
PARTICULARS
ASSETS
I)Current Assets
65
II) Fixed Assets

2870.05
51.18
3876.14
57.31
b)Investments
269.89
4.81
279.89
4.13
c)work in progress
65.04
1.16
69.03
1.02
3204.98
57.17
4225.06
62.47

LIABILITIES
a)Capital
b)Reserves &Surplus
5606.93
100.00
6763.19
100.00
115.23
1390.30
2.05
24.79
115.23
1370.30
16.49
20.26

1505.56
26.84
2485.53
36.75
a)secured loans
1100.25
19.62
1120.16
16.56
b)Un secured loans
800.35
14.27
873.82
12.92
c)Defferd Tax
792.71
0
14.13
0
813.66
0
12.03
0
2693.31
72.81
2807.64
41.51
a)Liabilities
1250.05
22.29
1307.93
19.54
b)Provisions
158.04
2.85
162.11
2.39
1408.09
25.0
1470.04
21.73
5606.93
100.00
6763.19
100.00
INTERPRETATION:
In 2005-06is more traditionally financed as

consists of 26.84of total investment. while the
then previous year.
66

72.81%.the figure in 2006-07were 41.31% and
38% these from Long term sources.

year 2006-07 is 37.52 current assets are 21.73%
and current liabilities are 20.53%. the working

satisfactory.
67
CHAPTER-5
CONCLUSION AND
SUGGESTIONS
CONCLUSION AND SUGGESTIONS.
The organization Current Assets is very high in the

Assessment
year
2009-10,the
amount
Rs68
12610.35Lakhs,and the Current Assets is low in the

assessment tear 2006-07.the amount is Rs
is2538.13Lakhs these is increasingly good proportion,
where Working capital is high, this is useful for
organization .so maintain this position in future also.
The organization share holders fund is high in 200910 the amount is -19222.23 Lakhs and this is low in
the
assessment
year,
the
amount
is
Rs
-2485.23Lakhs,the Share holder fund is gradually
increased . so the Company maintain for the future
years also.
The company Long-term funds are high in the

assessment year 2009-10,the amount Rs-27337.41
Lakhs and it is low in the assessment year 2006-07
the amount Rs -2807.64the company has a maintain
good long-term funds it is very useful in the bad
position.
The Sagar cements limited Assets very high in the

assessment year 2009-10: the amount is Rs
-39723.55Lajhs. this is very high by compare
previous year .so totally amount invested for fixed
Assets, also Current assets .so the proportion of
working capital is also good.
The current liabilities is slowly increasing the

previous year 2006-07to2009-10 the organization
have a good position in the current liabilities ,so
main tan this results in future.
The Working capital management of the company

indicates
low fluctuations its not effect on the
company performance.
69
The long term financial position of concern always

fixed assets more than increase in long-term
securities, as also the company have good working
capital but the investment in fixed assets is less
compare to current assets. So its not good sign for
the company.
In order to maintain the Working capital

management cycle in more effective and efficient
they should improve and use the latest technology to
meet the requirement.
The cash and bank balance is not more balances

compare to other current assets. So company
maintain good cash and bank balances for the future
use..
70
BIBILIOGRAPHY
BIBILIOGRAPHY
71
MANAGEMENT ACCOUNTING
SHASHI K.GUPTA
SHARMA
AND
FINANCIAL MANAGEMENT
I.M.PADEY
PRASANA CHANDRA
(principles and practices)
S.N.MAHESWARI
Annual reports of SAGAR CEMENTS LIMITED.

AND SAGAR CEMENTS LTD WEBSITE
72

Kiran Sir Financial Performance Sagar Cements

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CHAPTER-1

Financial analysis is the process of identifying the

Financial statement analysis largely a study of

Importance of financial analysis:

In so far its effects the ability of the company

In particular it is concerned with the

Comparative analysis are relationship expressed in a

Common size analysis is a simple arithmetic

NEED FOR THE STUDY

Lenders(short term and long term lenders)

Objectives of the study:

It helps in assessing present and future runing

To provide reliable information about changes in

It is information collected directly with out any

ii) secondary data:

The cement industry in India is dominated by around 20

Cement industry, in any country, plays a major role in the

government interference, especially in the pricing, is still

India witnessed the beginning of manufacture of

There are nearly 125 large cements plants

Ordinary Portland cement

The positive developments have paved the way

The year 2008-09 was a

The expand plant employees vertical roller

This would ensure the best quality in lab

In the year 2008-09 sagar cements entered

The Company is managed by a Board, whose

Senior Management team consists of highly qualified

The Company employs modern technology

Sagar Cements has a consistent Profit

The Company which started its operation with a

To provide foundation for society s future

To be the Indian most respected and attractive

The vision and mission statements of SCL ltd is

fulfillment of market needs with cost effective

maintaing equitable balance between

BACKGROUD OF THE COMPANY:

: Sri. S.Veera Reddy

: Sri. S.Annand Reddy

: Sri. S.Sreekanth Reddy

: Sri. O.Swaminatha Reddy

The corporate head office is located at

The manufacturing plant of cement is located at

AREAS IN WHICH R&D CARRIED OUT BY

The following areas SCL is undertaking R&D

development of new products

SCL mattsm pally units is having milestone

Gundla pally Nalgonda dt

the plant has well qualified highly motivated

In cement unit 150 are Executive/ Administrative

Copany has an ESP system in place at its plant,

CODE OF CONDUCT AND ETHICS FOR DIRECTORS

PROMOTING INTEREST OF THE COMPANY

The Directors and Senior Management Team shall act in

HEALTH, SAFETY, ENVIRONMENT AND SOCIAL

financial accounts and reports shall be regarded as a

PROTECTING COMPANY ASSETS

+ RCC works(Preferably where grade of concrete is M-25

under normal environmental conditions.

Portland Pozzolana Cement (PPC)

Portland Pozzolana Cement is ideally suited

+ The compressive strength of PPC as per BIS

CONTRIBUTION TO THE EXCHEQUER:

SCL Mattam pally has been contribution around of Rs