COMPA

Ambuja Cements Limited was set up in the late 80s. The cement industry presen
world’s most efficient cement companies producing the finest cement in the world at the lowest
Ambuja Cement Eastern Ltd. and revenue in excess of Rs.3298 crores.
Ambuja believes its most valuable assets aren’t cement plants.They are the people who run the
own targets, and the freedom to achieve their goals.
This simple vision has created an environment where there are no limits to excellence, no limits
the bar in all aspects of the cement industry. Be it transportation, plant efficiency, brand building
First plant set up in record time
When Ambuja set up its first plant in 1986, the accepted time period for installing a plant was 3
Ambuja's second plant was installed in a mere 13months - the quickest time for setting up a one
A whole new way of transporting cement 

In the early 90s, almost all cement in India travelled by rail or road. And in bags. A mode that inv
transporting bulk cement via the sea route. 
Making it the first company in India to introduce bulk cement movement by sea.
Branding a commodity
Cement is a commodity, sold largely on price. Ambuja Cement was the first company to create a
consumers and masons.
 
 
 
 
Exports
 
Ambuja Cement exports almost 17% of its production in a very competitive international environ
reasons –One, the quality of cement matches the best in the world.Two, the dedicated bulk ceme
The Environment
Ambuja has believed that a cement plant cannot flourish at the cost of the environment. That’s w
lower than the rigorous Swiss standards of 100 mg/NM 3. At the Gujarat plants, surface miners h
Corporate Social Responsibility
In 1991, the company set up Ambuja Cement Foundation to trigger all-round development of the
people to help themselves. It became a facilitator and catalyst, rather than a one-time fund prov
Milestones
Building of a cement plant in record 13 months.
2.8 kilometer conveyor belt running through three hills was constructed in just 9 months. Introdu
blast free limestone mining by using the surface miner in limestone mining for the first time in In
pollution levels – comparable with the most strongest Swiss standards.
Recognition
National Award for commitment to quality by the Prime Minister of India.
National Award for outstanding pollution control by the Prime Minister of India.
Eco-Gold Star by TERI
Best Export Award by CAPEXIL.
Award for Corporate Social Responsibility by Business World – FICCI
International Award For Rural Development by Asian Management Institute (AIM)
ISO 9002 Quality Certification.
ISO 14000 Certification for environmental systems.
Technical Details
Established – 1986. Total Capacity – 15 million tonnes.
pollution levels – comparable with the most strongest Swiss standards.
Recognition
National Award for commitment to quality by the Prime Minister of India.
National Award for outstanding pollution control by the Prime Minister of India.
Eco-Gold Star by TERI
Best Export Award by CAPEXIL.
Award for Corporate Social Responsibility by Business World – FICCI
International Award For Rural Development by Asian Management Institute (AIM)
ISO 9002 Quality Certification.
ISO 14000 Certification for environmental systems.
Technical Details
Established – 1986. Total Capacity – 15 million tonnes.
Infrastructure – Dedicated port at Gujarat. Capable of berthing 40,000 DWT vessels w
 
Headquarters
India
Industry
Construction
Type
Public Company
Status
Operating
Company Size
30,000 employees
Founded
1984
Website
http://www.gujaratambuja.com
Common Job Titles
Managers
20%
Engineer
16%
Officer
8%
Electrical engineer
3
senior engineer
3%
PROFILE:-
 
 
 
Top Schools
Shivaji Univ.
6%
Gujarat Univ.
5%
Nagpur Univ.
5%
Univ. of Mumbai
5%
Kendriya Vidyalaya
4%
 
Median Age
32 years
 
Median Tenure
3 years
 
Gender
 Univ. of Mumbai
5%
Kendriya Vidyalaya
4%
 
Median Age
32 years
 
Median Tenure
3 years
 
Gender
Male
93%
Female
7%

 
 COMPANY NAME - AMBUJA

ment industry presented an opportunity of steady growth and ethical competition to the promoters. However, a
e world at the lowest cost.Today, Ambuja is the 3 rd largest cement company in India, with an annual plant capa

people who run the plants.This unique vision is encapsulated in the company’s homegrown philosophy of givin

excellence, no limits to efficiency. And has proved to be a powerful engine of growth for the company. As a resu
iency, brand building or human resource development.

talling a plant was 3 years. Ambuja, did it in less than 2 years. And In 1993 the company went a step further an
e for setting up a one million tonne cement plant.  

bags. A mode that involves deterioration of both, the quality and volume of cement.In 1993, Ambuja Cement se

sea.

company to create a brand out of cement and command a premium.It was also the first to introduce a special c

international environment. For the last ten years, Ambuja Cement remains India’s highest exporter of ceme
dedicated bulk cement transportation capability at our Gujarat plant.

environment. That’s why it adheres to the most rigorous international environmental norms.The pollution levels
nts, surface miners have been employed to scrape the surface of the mines. Thus ensuring that all the mining is

d development of the people around its cement plants. The Foundation decided to traverse the difficult but mor
a one-time fund provider. It developed easily replicable and sustainable modules for water management, sustai

ust 9 months. Introduced a completely new system of transporting cement in India – the bulk cement transporta
for the first time in India. Created water reservoirs in used up mines and raised the water table in arid areas.Ou

ia.

titute (AIM)
ia.

titute (AIM)

000 DWT vessels with carrying capacity of 20,000 tonnes.

omoters. However, a decade later, it became one of
an annual plant capacity of 16 million tonnes including

n philosophy of giving people the authority to set their

e company. As a result, Ambuja has consistently raised

ent a step further and bettered its own record.

3, Ambuja Cement set up a complete system of

introduce a special cell, providing technical services to

st exporter of cement.This has been possible for two

s.The pollution levels at all its cement plants are even

that all the mining is totally blast free.

the difficult but more productive path of helping the

management, sustainable agriculture and healthcare.

ulk cement transportation by sea. Introduced complete

able in arid areas.Our plants have achieved the lowest
 Comparitive Analysis of Profit & Loss A/C

Absolute
PARTICLUAR Mar ' 10 Mar ' 09
change '10
Income
Operating income 11,850.24 9,857.08 1,993.16
Expenses
Material consumed 0.02 18.96 -18.94
Manufacturing expenses  3,439.42 4,556.41 -1,116.99
Personnel expenses 569.89 458.46 111.43
Selling expenses 406.69 426.57 -19.88
Adminstrative expenses 4,619.81 1,278.09 3,341.72

Cost of sales 9,035.83 6,738.48 2,297.35

Operating profit 2,814.41 3,118.60 -304.19
Other recurring income 80.14 238.94 -158.80
Adjusted PBDIT 2,894.56 3,357.53 -462.97
Financial expenses 206.32 1,206.35 -1,000.03
Depreciation  1,366.61 1,096.72 269.89
Other write offs 184.59 146.13 38.46
Adjusted PBT 1,137.04 908.33 228.71
Tax charges  115.08 85.65 29.43
Adjusted PAT 1,021.96 822.67 199.29
Non recurring items 31.69 162.86 -131.17
Other non cash adjustments 17.17 15.68 1.49
Reported net profit 1,070.83 1,001.21 69.62
Retained earnings -880.83 -405.28 -475.55
 INTERPRETATION:-

eased by 2010 and selling and material, manufacturing expenses are decrease. The net profit increased by 6.95%, the company is a good positi
s A/C

% age'10

20.22

-99.89
-24.51
24.31
-4.66
261.46

34.09
-9.75
-66.46
-13.79
-82.9
24.61
26.32
25.18
34.36
24.22
-80.54
9.5
6.95
117.34
 Comparitive Balance Sheet A/C

PARTICLUAR Mar ' 10 Mar ' 09

Sources of funds
Owner's fund
Equity share capital 3,299.84 3,100.10
Share application money 44.45 18.23
Preference share capital - -
Reserves & surplus 8,112.95 8,176.09
Loan funds
Secured loans 5,988.61 5,564.93
Unsecured loans 537.81 2,014.43
Total 17,983.65 18,873.78
Uses of funds
Fixed assets
Gross block 22,834.40 15,562.75
Less : revaluation reserve - -
Less : accumulated depreciation 7,907.34 4,739.86
Net block 14,927.06 10,822.89
Capital work-in-progress 462.58 1,721.82
Investments 2,755.13 4,928.81
Net current assets
Current assets, loans & advances 3,881.90 4,994.96

Less : current liabilities & provisions 4,043.02 3,594.69

Total net current assets -161.12 1,400.27

Miscellaneous expenses not written - -

Total 17,983.65 18,873.78

INTERPRETATION:-

THIS SHOWS THAT THE PERCENTAGE

OF TOTAL NET CURRENT ASSETS IS
DECREASING IN 2009&2010 & THE
TOTAL OF LOAN FUNDS IS
INCREASING DURING 2009&2010,.
e Sheet A/C
Absolute
% age 10
change '10

199.74 6.44
26.22 143.83

-63.14 -0.77
0.00
423.68 7.61
-1,476.62 -73.3
-890.13 -4.72

7,271.65 46.72

3,167.48 66.83
4,104.17 37.92
-1,259.24 -73.13
-2,173.68 -44.1

-1,113.06 -22.28

448.33 12.47
-1,561.39 -111.51

-890.13 -4.72
 Trend Analysis of Profit & Loss A/C

% age ternd
Particulars Mar ' 10 Mar ' 09
'10
Income
Operating income 11,850.24 9,857.08 120.22
Expenses
Material consumed 0.02 18.96 0.11
Manufacturing expenses  3,439.42 4,556.41 75.49
Personnel expenses 569.89 458.46 124.31
Selling expenses 406.69 426.57 95.34
Adminstrative expenses 4,619.81 1,278.09 361.46
Expenses capitalised - -
Cost of sales 9,035.83 6,738.48 134.09
Operating profit 2,814.41 3,118.60 90.25
Other recurring income 80.14 238.94 33.54
Adjusted PBDIT 2,894.56 3,357.53 86.21
Financial expenses 206.32 1,206.35 17.10
Depreciation  1,366.61 1,096.72 124.61
Other write offs 184.59 146.13 126.32
Adjusted PBT 1,137.04 908.33 125.18
Tax charges  115.08 85.65 134.36
Adjusted PAT 1,021.96 822.67 124.22
Non recurring items 31.69 162.86 19.46

Other non cash adjustments 17.17 15.68 109.50

Reported net profit 1,070.83 1,001.21 106.95

Earnigs before appropriation -880.83 -405.28 217.34

Equity dividend - -
Preference dividend - -
Dividend tax - -
Retained earnings -880.83 -405.28 217.34
WS THAT THE TREND IS INCREASING MEANS GIVING A POSITIVE SIGN IN EACH ITEM THIS SHOWS THAT COMPAN
s A/C

% age
trend '09

100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100

100
100

100
100
100
100
100
SHOWS THAT COMPANY IS IN GOOD POSITION.
 Trend Balance Sheet A/C
% age
Particulars Mar ' 10 Mar ' 09
ternd '10
Sources of funds
Owner's fund
Equity share capital 3,299.84 3,100.10 106.44
Share application money 44.45 18.23 243.83
Preference share capital - -
Reserves & surplus 8,112.95 8,176.09 99.23
Loan funds
Secured loans 5,988.61 5,564.93 107.61
Unsecured loans 537.81 2,014.43 26.7
Total 17,983.65 18,873.78 95.28
Uses of funds
Fixed assets
Gross block 22,834.40 15,562.75 146.72
Less : revaluation reserve - -

Less : accumulated depreciation 7,907.34 4,739.86 166.83

Net block 14,927.06 10,822.89 137.92
Capital work-in-progress 462.58 1,721.82 26.87
Investments 2,755.13 4,928.81 55.9

Net current assets

Current assets, loans &
advances 3,881.90 4,994.96 77.72
Less : current liabilities &
provisions 4,043.02 3,594.69 112.47
Total net current assets -161.12 1,400.27 -11.51
Miscellaneous expenses not
written - - 0
Total 17,983.65 18,873.78 95.28

INTERPRETATION:-

THIS SHOWS THAT MOSTLY THE

TREND IS INCREASING IN THE
WHOLE YEARS IN 2010 IT IS A
POSITIVE SIGN FOR THE
COMPANY.
/C
% age
ternd '09

100
100
100
100
100
100
100
100
100
100
100
100

100
100
100
100
100
100

100

100
100

100
100
 Common Size Analysis of Profit &
Particulars Mar ' 10 Mar ' 09
Income
Operating income 11,850.24 9,857.08
Expenses
Material consumed 0.02 18.96
Manufacturing expenses  3,439.42 4,556.41
Personnel expenses 569.89 458.46
Selling expenses 406.69 426.57
Adminstrative expenses 4,619.81 1,278.09
Expenses capitalised - -
Cost of sales 9,035.83 6,738.48
Operating profit 2,814.41 3,118.60
Other recurring income 80.14 238.94
Adjusted PBDIT 2,894.56 3,357.53
Financial expenses 206.32 1,206.35
Depreciation  1,366.61 1,096.72
Other write offs 184.59 146.13
Adjusted PBT 1,137.04 908.33
Tax charges  115.08 85.65
Adjusted PAT 1,021.96 822.67
Non recurring items 31.69 162.86
Other non cash adjustments 17.17 15.68
Reported net profit 1,070.83 1,001.21
Earnigs before appropriation -880.83 -405.28
Equity dividend - -
Preference dividend - -
Dividend tax - -
Retained earnings -880.83 -405.28

THAT THE PERCENTAGE DURING THE WHOLE YEARS IN DECREASING IN COMPARISION TO THE PREVIOUS YEAR F
THAT THE PERCENTAGE DURING THE WHOLE YEARS IN DECREASING IN COMPARISION TO THE PREVIOUS YEAR F
s of Profit & Loss A/C
% age change '10 % age change '09

100.00 100

0.00 0.19
29.02 46.22
4.81 4.65
3.43 4.33
38.98 12.97

76.25 68.36
23.75 31.64
0.68 2.42
24.43 34.06
1.74 12.24
11.53 11.13
1.56 1.48
9.60 9.22
0.97 0.87
8.62 8.35
0.27 1.65
0.14 0.16
9.04 10.16
-7.43 -4.11

-7.43 -4.11

TO THE PREVIOUS YEAR FOR EACH YEAR THIS IS A NEGATIVE SIGN FOR THE COMPANY.
TO THE PREVIOUS YEAR FOR EACH YEAR THIS IS A NEGATIVE SIGN FOR THE COMPANY.
 Common Size Balance Sheet A/C
% age
Particulars Mar ' 10 Mar ' 09
change '10
Sources of funds
Owner's fund
Equity share capital 3,299.84 3,100.10 18.35
Share application money 44.45 18.23 0.25
Preference share capital - -
Reserves & surplus 8,112.95 8,176.09 45.11
Loan funds 0
Secured loans 5,988.61 5,564.93 33.3
Unsecured loans 537.81 2,014.43 2.99
Total 17,983.65 18,873.78 100

Uses of funds
Fixed assets
Gross block 22,834.40 15,562.75 126.97
Less : revaluation reserve - -
Less : accumulated
depreciation 7,907.34 4,739.86 43.97
Net block 14,927.06 10,822.89 83
Capital work-in-progress 462.58 1,721.82 2.57
Investments 2,755.13 4,928.81 15.32
Net current assets 0
Current assets, loans &
advances 3,881.90 4,994.96 21.59
Less : current liabilities &
provisions 4,043.02 3,594.69 22.48
Total net current assets -161.12 1,400.27 -0.9
Miscellaneous expenses not
written - -
Total 17,983.65 18,873.78 100

RCENTAGE CHANGE IS DECREASING IN 2009 AND THEN INCREASING IN 2010 THIS SHOWS THAT COMPANY IS IN
RCENTAGE CHANGE IS DECREASING IN 2009 AND THEN INCREASING IN 2010 THIS SHOWS THAT COMPANY IS IN
et A/C
% age change
'09

16.43
0.1

43.32
0
29.48
10.67
100

82.46

25.11
57.34
9.12
26.11
0

26.47

19.05
7.42

100

SHOWS THAT COMPANY IS IN GOOD POSITION.

SHOWS THAT COMPANY IS IN GOOD POSITION.
Ratios
operating margin %
Gross profit margin %
Net profit margin
Adjusted cash margin
Long term debt/equity
Total debt/equity
Current ratio
Dividend per share
Operating profit per share
Book value
Net operating
Adjusted EPS
Adjusted cash EPS
Report EPS
Reported cash EPS

Interpretations
Formula 2010 2009
operating profit/operating income*100 23.75 31.64
operating profit-depreciation/operaing income*100 12.22 20.51
adjusted PBT/operaing income 9.6 9.22
adjusted PAT/operating income 8.62 8.35
long term loan/equity+reserves 0.57 0.67
unsecured loan/equity+reserves 0.57 0.67
current assets/current liabilities 0.96 1.39
equity dividend/no. of share
sales/no. of share 35.91 31.8
share+surplus/no. of share 34.59 36.37
sales/no. of share
adjusted PAT/no. of share 3.1 2.65
adjusted PAT+depreciation/no. of share 7.24 6.19
reported net profit/no.of share 3.25 3.23
reported net profit+depreciation/no.of share 7.39 6.77
 Funds Flow Statement

Rs. In Crores

Year Mar'10 Mar'09

Sources of funds Appli
Cash profit 4221.14 1519.57
Increase in equity 199.74 464.74
Increase in other networth 0 6286.2
Increase in loan funds 0 1064.6
Decrease in gross block 0 0
Decrease in investments 2173.68 0
Decrease in working capital 1561.39 0

Total Inflow 8155.95 9335.11

ow Statement

Rs. In Crores

Mar'10 Mar'09
Application of funds
Cash loss 0 0
Decrease in net worth 1090.95 0
Decrease in loan funds 1052.95 0
increase in gross block 6012.41 2454.55
increase in investments 0 4358.88
Increase in working capital` 0 2521.68

Total outflow 8155.95 9335.11

COST SHEET

Particulars 2010 2009

material consumed 0.02 18.96
manufacturing expenses 3439.42 4556.41
prime cost 3439.44 4575.37
Add: factory overheads
depriciation 1366.61 1096.72
factory cost 4806.05 5672.09
Add: administration overheads
administration expenses 4619.81 1278.09
cost of production 9425.86 6950.18
Add: selling and distribution overheads
selling expenses 406.69 426.57
cost of sales 9035.83 6738.48
Add: profit 2814.41 3118.6
sales 11850.24 9857.08