A

Project report on ultratech cement limited Submitted to:Som-lalit institute

of Business administration
Toward a partial fulfillment of Bacheler of busin administtation S.Y B.B.A programme Submitted by:Vekariya kalpesh D. S.Y B.B.A Roll no:- 173 Division:- D.

Ultratech cement

CERTIFICATE This is to certify that a financial report on the ultratech cement limited it submitted by VEKARIYA KALPESH D. to the SOM LALIT INSTITUTE OF BUSINESS ADMINISTRATION affiliated to the Gujarat university in partial fulfillment for complition of practical studies of second year of B.B.A programme.

Prof. R.H.vyas (director)

prof. kaushal amin (faculty)

Date:-

Ultratech cement

Acknowledgement Through this acknowledgement I express my sincere gratitude toward all those people helped me in this project, which has been a learning experience. I would like to thanks our director of som lalitinstitute of business administration prof. r.h.vyas four providing me this opportunity to preparing this report. I am verythankful to PROF. KAUSHAL AMIN who provide me guidance in prepairing this report. I am also thankful to my friend who provide me the annual report on ultratech cement and also thankful to my seniors who help in prepairing this financial report.

Vekariya kalpesh D. S.Y. B.B.A Roll No. 173 (D)

Ultratech cement

PREFACE Today competition come in all the activity. May firms are come in market on everyday because people always want something new and qualitative product. If business continuously dont hard work so they can not stand in the market so the firm is generate new ideas and to do somethingnew and different types. As a student, making a report is more important for us as apart of our syllabus studying only theoretical management never makes a perfect manager. So we need some practical knowledge about different aspect of some professional manager. I got a very experience and improve my knowledge an it providing guidelines to me to do work in actual situation from this study. From this report I analyze the financial the financial data of ultratech cement for three year and I got a knowledge of financial position of any company.

Ultratech cement

CONTENTS Sr.no particular 1 Introduction of the company 2 3 4 5 6 7 8 9 10 11 Director report Auditor report Ratio analysis Comparative statment Commonsize statment Analysis of significant a/cc policy Analysis of cash flows statment conclusion bibliography annexure Page no.

Ultratech cement

HISTORY OF THE COMPANY

ULTRATECH founded in 1979. Ultratech is aleader in the both of its mejor technology market advanced packimg and laser processing. The company advanced packing ethography system deliver compling performance at the industrial lowest overall cost of the ownership equally impressive is ultratech lessor processing technology which increase chip performance while reducing every consumption. These state of the are technology are considerd by today leading chipmakers to be the getways future device generation indian leader from the semi consultanted display and nano technology market.

Ultratech cement

CURRENT MANAGEMENT Board of director: Mr.Kumar mangalam birla, chairman Mr.Rajashree birla Mr.R.C.Bhargva Mr.G.M Dave Dr.S. Mishra Executive Mr.O.P.Pramalka -Group executive president -Chief marketing officer Mr.V.Shukla : chief people officer. Mr.K.C.Birla : chief financial officer Mr.S.K.chaterjee : company secratery Auditors S.B. Bilimora & co. charterd accountant Mumbai. G.P. Kapadiya is company charterd accountnt Mumbai.

Ultratech cement

TREND ANALYSIS In the trend analysis four topic are important. 1. Sales 2. Net earning 3. Earning per share 4. Dividend (1) Sales year 2003-04 2004-05 2005-06 2006-07 2007-08 Rs.in crore 2251 2607 3299 4911 3509

6000 5000 4000 3000 2000 1000 0 2004-05 2005-06 2006-07 2007-08

Interpretation :-sales of the company is increasing year to year so it is good for the company.

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(2) Net earning:years 2003-04 2004-05 2005-06 2006-07 2007-08 Rs.in crore 39 3 230 782 1008

1200 1000 800 600 400 200 0 2004-05 2005-06 2006-07 2007-08

Interpretation :Net earning of the company it is reducing in 2004-05 but after then it is continue increasing and in the year 2007-08 net earning is 1008 crores so it is a better for the company.

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(3) Earning per share years 2003-04 2004-05 2005-06 2006-07 2007-08 Rs.in crore 3.12 0.23 18.46 62.84 80.96

90 80 70 60 50 40 30 20 10 0 2004-05 2005-06 2006-07 2007-08

INTERPRETATION :Earning per share of the company is also reduce in 2004-05 but after than EPS is increases year to year so the share holders get high earning on the share so it is a good.

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(4) Dividend years 2003-04 2004-05 2005-06 2006-07 2007-08 Rs.in crore 0.50 0.75 1.75 4.00 5.00
6 5 4 3 2 1 0 2003-04 2004-05 2005-06 2006-07 2007-08

INTERPRETATION ;Dividend rate is increasing year to year so share holders will get dividend highly so it is a good.

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DIRECTORS REPORT
Particular Gross turn over Gross profit Less: depreciation Profit before tax Tax expenses Profit after tax Add: balance brought forward from previous year Surplus available for appropriation Appropriation Debenture redemption reserve General reserve dividend Corporate tax on dividend Balance transfer to balance sheet Total 2007-08 6286.24 1744.24 237.23 1507.01 249.40 1007.61 775.16 1782.77 (8.17) 120 62.24 1058 1598.12 1782.77 2006-07 5484.35 1392.44 226.25 1166.19 383.91 782.28 180.57 982.85 30.92 100 49.79 6.98 775.16 962.85

Review of operation and over view. During the year the company produced 15.07 mmt of cement. And the turn over of the company is Rs.6286.24 crores was increases up to 15% compare the last year.

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1.

DIVIDEND

Dividend of Rs. 5% per equity share of 1% each the director recommended for the year ending 31st march,2008.the dividend distribution would result in cash outgo of Rs. 72.82 carores compare to Rs,56.77 carores paid for the year 2006-07. 2. CAPITAL EXPENDITURE Company inttiated various expansion and de.bottlenecking programs to maintain growth and improve efficiencies. The clinkerisation unit at Andhra Pradesh cement works was commissioned during the fourth quarter of the financial year ended 31st narch 2008. The unit will be operational in the first half of the current fiscal. Thermal power plant of 23amw at Gujarat cement works in Gujarat. All four strems aggregating to 92MW. Will be fully operational by HIFY.
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3. EMPLOYEE STOCK OPERATION SCHEME The ESOS compensation committee of the board of the company formulated. The employee stock option scheme 2006 at its meeting held on 23rd august,2007. The ESOS compensation committee granted 1,68,070 stock option to eligible employees of the company. The disclosure, as required under clause 12 of securities and exchange board of India guidelines,1999 is set out in annexure I to this report.

4. AWARDS The company receipt of this awards. (1). The top exporter award from CAPEXIL for the eleventh consecutive year. (2). State level award for excellence in energy conservation and Mgt. for 2006 for Acw. (4) national safety award for outstanding performance in industrial safety for Hcw.

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5. RESERCH AND DEVELOPMENT

The company continued its efforts towards maximizing waste utilization, search for alternative sources of fuel and chemical and mineral evaluation of captive limestone mines. These measures will aid in conserving natural resources.

6. HUMAN RESOURCES The company employees continue to be the key driving force of the organization and remain a strong source of competitive advantages. The company belive in aligning business priorities with the aspiration of employees leading to the development of empowered and responsive human capital. Through the stronger employer brand, company have a quality people with required skills who have became part of committed workforce of the company.appropriate measures are being planned by the
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company to ensure talent retention and employee engagement. The company give the support learning and development initiatives to enhance the functional as well as the behavioural competencies of the company people. Company were enlisted for various high quality learning inventions. These programs supplemented with a combination of development assignment classroom and web based training, has enabled our people to continuously learn, develop and grow.

7. CORPORATE GOVERNMENT Director reaffirm, their continued commitment to good corporate governance practices. During the year under review, the company complied with the provisions of clause 49 of the listing agreement with the stock exchanges which relates to corporate government.

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A separate section on corporate governance together with a certificate from the companies statutary auditors forms a part of this annual report.

8. SUBSIDIARY COMPANIES In terms of sections 212 of the companies Act.1956the accounts together with the report of directors and the companies subsidiaries viz. dakshin cement limited farms a parts of this report.

9. FINANCE The company has raised rs90 crores by way of fully hedge buyer credit for a tenure of three years these funds have been used for various ongoing capax The company has repaid debentures and loans amounting to Rs. 285 crores. Company has not invited to renewed deposits from the public share holders in accordance with section 58A of the Act.
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10. ENERGY TECHNOLOGY &FOREINGN EXCHAGE

Information on conservation of energy technology absorption and foreign exchange earnings and outgo, required to be disclosed pursuant to section 217(1) of the Act, read with the companies rules 1988 is given in annexure 2 and farms part of this report.

11. PARTICULARS OF EMPLOYEES

In accordance with the provisions of section 217(2A) of the Act read with the companies rules 1975 the names and other particular of employees are to be set out in the director reports as an addendum thereto however as per the provisions of section 219(1) of the Act the report and accounts as therein set out are being sent to

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all members of your companies excluding the aforesaid information about the employees.

12. DIRECTORS RESPONSIBILITY STATEMENT DIRECTORS CONFORMS (1) In the preparation of the annual accounts the applicable accounting standards have been followed along with proper explanations relating to material departures, if any; (2) The accounting policies selected have been applied consistently and judgement and estimates are made that are reasonable and prudent so as to give a true and fair view of the stat of affairs of company as at 31st march,2008 and of the profit of your company for the year ended on that date, (3) The annual account of your company have been prepared on going concern basis.

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AUDITORS REPORT

To the members of the ultratech cement limited. 1) They have audited the attached balance sheet of ultratech cement ltd. As at march 31st 2008, the profit and loss account and the cash flow statement of the company for the year ended on the date, both annexed thereto. These financial statements are the responsibility of the companies management. 2) Auditors conducted his audit in accordance with the auditing in accordance with the auditing standard generally accepted in India. Those standard require that those plan and perform the audit to obtain reasonable assurance about whether the financial statement are free of material misstatements. An audit includes examining , on the test basis, evidence supporting the amount and disclosures in the financial statements. An audit use the account principle and significant estimated made by the

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management. They can believe the audit provide a reasonable basis for his opinion. 3) Required by the auditors report order,2003 issued by the central government in terms of section 227(4A) of the companies Act,1956. 4) Further to comments in the annexure refferd. A. Auditor have obtained all the information and explanations, which to the best knowledge and belief where necessary for the purpose of audit. B. Opinion of the company, proper books of account as required by law have been kept by the company so far as it appears from examination of those book and proper returns adequate for the purpose of audit have been received from the branches not visited by auditors. C. The report of the auditors of the branches have been submitted by the auditors and the same have been considered preparing in this report.

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D. The balance sheet, the profit & loss account and cash flow statement with by this report are in agreement with the books of account and with the auditors referred to in section 211(3C) of the companies Act. E. In auditors opinion the balance sheet, profit & loss account and the cash flow statement delt with by this report are in compliance with the company Act,1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India. True and fair view in conformity with the conformity with the accounting principles as under. (1). In the cash of the balance sheet, of the stat of affairs of the company as at march 31st 2008. (2). In the cash of the profit and loss account, of the profit of the company for the year ended on that date, and

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(3). The cash of the cash flows statement; of the cash flows of the company for the year ended on that date. 5) On the basis of the writer representation from the directors as on march 31st2008 taken on record by the board of directors is disqualified as on march 31st2008 from being appointed as a director under section 274(1) of the companies Act,1956.

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RATIO ANALYSIS The relationship between various related items in these financial statement is know as ratio A ratio is the relationship between two figures, and obtained by dividing the former by dividing one number by another that means a ratio is only compression of the numerator with the denominator. The ratio refer to the numerical or quantitative relationship between two figures. Ratio are relative from of financial data and very useful techniques to check upon the efficiency of a firm. Some ratios indicate the trend or progress or down of the firm.

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Interpretation of a ratio :only calculating ratio is of no use unless it is interpreted so as be useful to management in making policy decision. The following methods are used for this purpose. 1) Comparison with ideal ratio 2) Comparison with past ratio 3) Comparison with other company.

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CLASSIFICATION OF RATIO

1) PROFITABILITY RATIOS - Gross profit ratio - Net profit ratio - Operating ratio - Expense ratio - Return on capital employed ratio - Return on share holder fund - Return on equity fund - Earning per share. 2) LIQUIDITY RATIO - Current ratio - Liquid ratio - Acid-test ratio 3) LEVERAGE RATIO - Proprietary ratio - Debt-equity ratio - Capital gearing ratio
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- Fixed capital to fixed assets ratio 4) TURN OVER RATIO - Total assets turnover ratio - Debtors turnover ratio - Creditors turnover ratio - Stock turnover ratio - Working capital turnover 5) COVERAGE RATIO - Debt service coverage ratio.

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(1) Gross profit ratio It is the basis measure of profitability of business. It expresses relationship between gross profit earned to net sale it is also known as gross margin.

Gross profit ratio = Particular Gross profit ratio sales Ratio

100 2005-06 2006-07 2007-08 1546.73 2816.83 3133.86 3299.45 4910.83 5509.22 46.88% 57.36% 56.88%

INTERPRETATION :In the year 2006-07 gross profit ratio are increasing but after then in the current year this ratio are decreasing so it can not be good for the company because of gross profit is the result between price, sales volume and cost.
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(2) Net profit ratio

This ratio measures the relation between net profit and sales of the firm. The net profit is obtained after charging operating expenses, interest, depreciation and taxes to the gross profit.

Net profit ratio =

100

Particular Net profit ratio Net sales Ratio

2005-06 2006-07 2007-08 229.76 782.28 1007.61

3299.45 4910.83 5509.22 6.96% 15.92% 18.29%

INTERPRETATION :-

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Here, the net profit ratio is increasing in the year 2005-06 to 2006-07 up to 15.92% and after then it is increasing up to 18.29% so it is a better for the company. (3) Operating ratio It is a ratio showing relationship between cost of good sold plus operating expenses and net sales. It show the efficiency of the management. The higher the ratio, the sales will the higher the ratio, the sales will be the margin available to proprietors.

Operating ratio = COGS = Sales Gross profit

100

Operating expenses = administrative exp.+ finance exp. + selling & distribution Exp.

Particular Operating expenses

2005-06 2006-07 2007-08 939.33

Ultratech cement

1249.26 1282.25
30

COGS sales Ratio INTERPRETATION :-

1752.72 2094

2375.36

3299.45 4910.83 5509.22 81.59% 68.08% 66.39%

The ratio suggest particular share of selling price is absorbed by cost and remaining is left percent of business. Higher ratio is not desirable as it levels a small position of income to meet other non operating expenses here the operating ratio is decreasing so it is a good for the company.

(4) Expenses ratio For the purpose of ascertaining relationship between operating expenses and net sales, expenses ratio are computed. Expenses ratio = Particular 2005-06 2006-07 2007-08 1249.26 1282.25
31

Administrative expenses 939.33

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sales Ratio

3299.45 4910.83 5509.22 28.49% 25.44% 23.27%

INTERPRETATION ;Lower the ratio better is the profitability of the business that means less ratio is less expenses during the year here the ratio is decreasing continuously so it is very good for the company. (5) Return on capital employed. This ratio is an index of the profitability of business and if obtained by comparing profit with capital employed. The success or otherwise of enterprise is judged with the help of this ratio. Return on cap.emp. = EBIT Particular 2005-06 2006-07 2007-08 100

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Profit interest Total

229.76 55.83 285.59

782.28 383.91 383.91

1007.61 499.40 1507.01

Capital employed = share capital +reserve +secured loan Capital employed Particular Share capital Reserve & surplus Secured loan total 2005-06 2006-07 2007-08 124.40 913.40 124.49 124.49

1639.29 2571.73

1221.93 1151.25 982.66 2260.11 2915.03 3678.88 Ratio

Particular EBIT Capital employed total INTERPRETATION :-

2005-06 2006-07 2007-08 285.59 1166.19 1507.01

2260.11 2915.03 3678.88 0.13% 0.4% 0.41%

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Higher the ratio more will be the return for share holders. Here the ratio increase continuously. So it is a better for the company.

(6) Return o share holder fund. This ratio is the financial income that is available for distribution as dividends to share holders. Share holder funds include both performance and equity share capital and all reserve & surplus belonging to share holders. Return on share holder fund 100

Share holder fund = share capital +reserve & surplus +preference share fix assets Share holder fund Particular Share capital 2005-06 2006-07 2007-08 124.40
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124.49

124.49
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Reserve & surplus total

913.40

1639.29 2571.73

1038.18 1763.78 2696.22

Ratio Particular Profit after tax Share holder fund Ratio INTERPRETATION :Higher the ratio is better for the share holders. Here the ratio is increasing in 2006-07 but after that year 2007-08 the ratio are declining up to 37.37% so it is not good because the share holder get lower interest. 2005-06 2006-07 2007-08 229.76 282.28 1007.61

1038.18 1763.78 2696.22 22.13% 44.35% 37.37%

(7) Return on equity share capital

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It show what percentage of profit is earned on the capital invested by ordinary share holders. The ratio is obtained by dividing net profit after deduction of preference dividend by the amount of ordinary share capital plus free reserve. Return on equity share capital = 100 Equity share capital=equity share capital + reserve equity share capital Particular Equity Share capital Reserve & surplus total Ratio Particular 2005-06 2006-07 2007-08 710.7 1007.61 2005-06 2006-07 2007-08 124.40 913.40 124.49 124.49

1639.29 2571.73

1038.18 1763.78 2696.22

Prof- preference dividend 220.43

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Equity Share capital Ratio INTERPRETATION :-

124.40

124.49

124.49

21.23% 40.29% 37.37%

It indicates the firm ability of generating from share holder fund & preference dividend the ratio has been increased from 21.23 % to 40.29% in year 2005-06 & 2006-07 but current year has been decrease in 31.37% power is the had so efficiency of the business is not better.

(8) Earning per share. Earning per share ratio indicate the profit which is earning on 1 share. EPS =

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This company directly included earning per share in the profit % loss account otherwise doesnt find earning per share ratio. 2005-06 2006-07 2007-08 18.46 Rs. 62.84 Rs. 80.94 Rs.

It indicates the profitability of share holder because higher EPS is better for share holder. The ratio increase from 18.46 Rs. To 62.84 Rs. To 80.94 Rs. In assessment of the year 2005, 2006 and 2007.

[2] LIQUIDITY RATIO

In fact, the use of ratios was made initially as certain the liquidity of business. The current ratio and

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Acid-test ratio will tell whether the business will be able to meet its current liabilities as and when they mature. (1) Current ratio This most widely used ratio shows the proportion of current assets to current liabilities. It is also known as working capital ratio. Current ratio =

Working capital
Current assets = inventories + sundry debtors +cash & bank + loan and advanced

Particular Inventories Sundry debtors Cash & bank balance

2005-06 2006-07 2007-08 379.57 17.55 61.6 433.58 183.5 89.59 609.76 216.61 100.69

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Loan & advances Total

158.8 772.52

253.5 960.17

376.83 1303.89

Current liability = C.L +provision Current liability Particular Current liability provision Total Ratio Particular Current assets Current liability Ratio 2005-06 2006-07 2007-08 772.52 555.06 1.39:1 960.17 755.78 1.27:1 1303.89 1278.56 1.02:1 2005-06 2006-07 2007-08 516.87 39.18 55.05 736.71 18.47 755.78 1153.01 125.55 1278.56

INTERPRETATION :Here the ratio decreases in three year. It means that are not good for the company.

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(2) Liquid ratio Liquid ratio is also known as quick ratio. It is the ratio between liquid assets and liquid liabilities as pointed out. The current ratio in the study of solvency may be some times misleading due to high ratio of stock to current assets.

Liquid ratio = Liquid assets= current assets stock Liquid liability = current liability bank over draft Liquid assets Particular Current assets Stock Total 2005-06 2006-07 2007-08 772.52 39.12 733.40 Ratio 960.17 32.54 927.63 1303.89 26.63 1277.26

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Particular Liquid assets liquid liability Ratio

2005-06 2006-07 2007-08 733.40 556.05 1.32:1 927.63 755.18 1.23:1 1277.26 1278.56 1:1

INTERPRETATION :The ratio, greater is the margin of the safety for liquid liability generally the ideal ratio is between 1.33:1 and 2:1 the current ratio decrease from 1.32:1 to 1.23:1 to 1:1 in the assessment year.2005-06 to 2007-08 which show the firm has not difficulty in its liquid liability, because the company have a enough liquid assets.

(3) Acid-test ratio The acid test ratio is the ratio between quick current liability and it calculated by dividing the quick assets by the current liability.

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Quick ratio = Particular Quick assets current liability Ratio INTERORETION :Acid test ratio is a very well exciting standard of liquidity and it is satisfactory is 0.5:1. Here, Acid test ratio in the current year is very near by them so it is good for company. 2005-06 2006-07 2007-08 61.60 556.05 0.11:1 89.59 755.18 0.12:1 100.69 1278.56 0.08;1

[3] LEVERAGE RATIO (1) Proprietary ratio The ratio show the proportion of proprietors fund to the total assets of business. The proprietors fund consist of share capital and reserve.
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Proprietary ratio = Proprietary fund Particular Share capital + reserve Total

100

2005-06 2006-07 2007-08 124.4 913.78 124.49 124.49

1639.29 2571.73 2696.22

1038.18 176.78

Total = F.A.+ C.A. + investing assets Total assets Particular Fix assets Current assets Invest Total 2005-06 2006-07 2007-08 2678.2 772.52 172.39 3214.23 4783.61 483.45 960.17 170.9 1303.89

3629.11 4657.85 6258.4

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Ratio Particular Proprietor fund Total assets Ratio INTERPRETATION :Higher the ratio stronger the financial position of the company. Here proprietary ratio is increasing 28.65 to 37.87 in 2006-07 after then in 2007-08 the ratio are increasing up to 43.08. so that financial position of the company is good. (2) Debt equity ratio This ratio is only another form of proprietary ratio and establishes relationship between the outside long term liabilities and owners fund. It show the proportion of long term external equities and internal equities. 2005-06 2006-07 2007-08 1038.18 1763.78 2696.22 3623.11 4657.85 6258.4 28.65% 37.87% 43.08%

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Debt equity ratio = Particular Long term debt Share owner fund Ratio INTERPRETATION :-

100
2005-06 2006-07 2007-08 217.15 200.43 161.55

1038.18 1763.78 2696.22 20.92% 11.36% 6%

This ratio is only another forms of proprietary ratio and establishes relationship between outsides long term liability and owners fund in the above ratio suggest that in year 2006 and 2008 there is a long term debt of 20.92% to 6% respectively in another words proprietary fund is high so it is a good for the company.

(3)Capital gearing ratio This ratio expresses the proportion of preference capital and ordinary capital in other words, it is the ratio

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of fix dividend bearing capital to ordinary capital. Sometimes, even debentures are included along with preference capital. Capital gearing ratio =

Particular Preference+ debenture Share capital equity Ratio

2005-06 2006-07 2007-08 217.15 124.4 174.56 time 200.43 124.49 161 time 161.55 124.49 129 time

INTERPRETATION :He proportion of fixed interest bearing capital is low so the capital structure is not highly geared. here the ratio are decreasing by year to year so it is a good for company.

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Long term fund to fix assets Long term fund to F.A. =

100

long term fund = share capital + reserve + secured loan long term fund Particular Share capital reserve Total 2005-06 2006-07 2007-08 124.4 913.78 124.49 124.49

1636.29 2571.73

2260.11 5175.14 3678.88

Particular Long term fund Fix assets Ratio INTERPRETATION :-

2005-06 2006-07 2007-08 2260.11 5175.14 3678.88 2678.20 3214.23 4783.61 84.39% 161% 76.91%

Best and most ideal ratio is never to 100% if it is less then short term fund is used which lead to loan after
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short term its very risky for the business. If it is higher check which of element of numerator its contributing more. (4) Turn over ratio a. Total assets to turnover ratio The amount invested in business are invested in all assets jointly and sales are effected through them to earn profit so in order to find out relation between total assets to sales. Total assets turnover ratio =

100

Particular Sales Total Ratio

2005-06 2006-07 2007-08 3299.45 4910.83 5509.22 3623.11 4657.85 6258.4 0.91:1 1.05:1 0.88:1

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INTERPRETATION :Higher the ratio, the more efficient is the management and utilization of the assets while low turnover ratio are indicate of low or under utilization of available resource and presence of ideal capacity. Here, the total assets turnover are increasing in 2006-07 but in the 2007-08. The ratio are decreasing so it can not be good for company. B. Debtors ratio (1) debtors ratio The ratio show the number of days taken to collect the dues of credit sales. It shows the efficiency or otherwise of the collection policy of the enterprise. Debtors ratio=

360

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Particular

2005-06 2006-07 2007-08 183.50 216.61

Debtors+ bills receivable 172.55 Net credit sales Ratio

3299.45 4910.83 5509.22 19 days 13 days 14 days

(2) debtors turnover ratio

debtors turnover ratio = Particular Days Debtors ratio Ratio 2005-06 2006-07 2007-08 360 19 18.95 times INTERPRETATION :Debtors ratio of the company was good in 200506 that is 19 days but it is decrease up to 13 days in 200607 that is a good for company but after then in the year of
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360 13 27.69 times

360 14 25.71 times

2007-08 ratio is increase 1 days so it is not better for the company. The trend of debtors of the debtors turnover ratio is same as debtors ratio. Here, the ratio is increasing in 2005-06 to 2006-07 and after the ratio are decrease of 2 points.

(3).

Creditors ratio The ratio shows the number of days within

which we make payment to our creditors for credit purchases it obtained from creditors velocity. (A). creditors ratio :-

360

Credit purchase = raw material consumed + manufacturing expenses+ purchase of finished good.

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Raw material + expenses +purchase finished good 2005-06 2006-07 2007-08 282.25 392.99 536.77 1203.15 265.32 1518.58 182.43 1824.91 13.68 =1752.72 =2094 =2375.36

Ratio
Particular Credit purchase Purchase Ratio 2005-06 2006-07 2007-08 318.13 463.99 776.79 2375.36

1752.72 2094 65 days

80 Days 118 Day

(B). credit turnover ratio. credit turnover ratio :-

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2005-06 2006-07 2007-08

360/68 360/80 360/118

5.54 times 4.5 times 3.10 times

INTERPRETATION :This ratio shows number of days within which we make payment to the creditors. Higher the ratio more time will be available to pay credit. here, the creditors ratio is increasing time to time up to 118 days so it is a good for the company. (4). Stock turnover ratio. The number of times average stock is turned over during the year It is known as stock turnover. It is computed by dividing the cost of good sold by the average stock in business. Average stock is the opening and closing stock of the year.

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Stock turnover =

Ratio
Particular COGS Average stock Ratio 2005-06 2006-07 2007-08 1752.72 2094 189.79 9.24 times INTERPRETATION :216.79 9.66 times 2375.36 304.88 7.79 times

Stock turn over ratio indicates in a year how much time stock is turn, in all the year ratio is higher and also increasing, more the ratio is better for the company because there are more profitability so here the ratio is very better.

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(5). Working capital turnover ratio This ratio is measure of the efficiency of the employment of the number of time the working capital, is turned over in the causes of year. Working capital ratio = Net working capital = current assets- current liability Particular Current assets -current liability Total 2005-06 2006-07 2007-08 772.52 550.05 216.47 960.17 755.18 204.99 1303.89 1278.56 25.33

Ratio
Particular COGS Working capital Ratio 2005-06 2006-07 2007-08 1752.72 209.4 216.47 8.1 times 204.99 10.22 times 2375.36 25.33 93.76 times

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INTERPRETATION :It has been seen from the table that this is very high for the current year so it is good for the company.

(5) Coverage ratio. i. Debt Coverage service ratio When a creditors or bank lend money to the business, he always examines the paying capacity of the borrower. This ratio shows the capacity of borrower.

Debt service coverage ratio =

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Profit available for the debt payment

Particular Profit after tax +depreciation +interest Total

2005-06 2006-07 2007-08 229.76 216.03 89.64 535.43 782.28 226.25 86.83 1007.61 75.67 237.51

1095.36 1320.51

Install. Of principle.+ interest = previous year secured loan current year secured loan + interest. 2005-06 2006-07 2007-08 1253.35 1221.93 1151.25 -1229.93 -1151.25 -982.66 +89.64 +86.83 +237.23 =121.06 =157.51 =405.82

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Ratio
Particular Profit available for debt Install of print interest Ratio 2005-06 2006-07 2007-08 533.43 121.06 4.42 times INTERPRETAION :This ratio show many times a profit covers the payment of principal and interest on loan. 1095.36 1320.51 157.5 6.95 times 405.82 3.05 times

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COMPORATIVE BALANCE SHEET

Assets 2005-06 2006-07 2007-08 2006-07 2007-08 Rs. Current assets Inventories Sundry debtors Cash and bank Loan advance 379.57 172.55 61.60 158.80 772.52 Fix assets F.A. Investment 2676.20 3214.23 4783.61 120 172.39 483.45 170.9 280 179 99 433.58 183.50 89.59 253.50 960.17 609.76 216.61 100.69 376.83 1303.89 114 106 145 160 161 126 163 237 Rs. Rs. %. R%

2850.59 3697.68 4954.51 Total assets 3623.11 4657.85 6258.4 100 100

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LIABILITY LIABILITY
2005-06 2006-07 2007-08 2006-07 2007-08 Rs. Equity share Share capital susp. Employee stock Option O/S Reserve and surplus 124.4 0.09 124.49 913.78 313.78 Loan fund Secured loan Unsecured loan 1221.93 1151.25 982.66 229.90 427.38 757.84 Rs. 124.49 124.49 Rs. 124.49 0.77 125.26 %. 100 R% 100 281

1639.29 2571.73 179 1639.29 2571.93

1451.83 1578.63 1740.5 Tax liability 576.96 570.96 560.26 560.20 542.35 542.35 97 14

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Current lia. Provision Current liability Provision 516.87 39.18 560.05 Total liability 736.71 18.47 755.18 1153.01 143 125.55 1278.55 47 223 320

3623.11 4657.85 6258.4

INTERPRETATION :In all the three year percentage of share capital increases and percentage of loan and advance increases. Here, the current assets and fix assets increases so it is a good for the company.

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COMMON SIZE PROFIT AND LOSS ACCOUNT

VALUE IN CRORES
particular 200506 Sales - COGS Gross profit -operating expenses Admi. Expenses Selling expenses Financial expenses 149.17 84.33 128.59 194.88 276.71 4.52 3.97 22.97 2.64 29.58 5.02 20.28 2.38 27.68 3299.45 1503.22 1796.23 200607 200708

% OF SALES
200506 200607 100 37.19 62.81 200708 100 34.50 65.50

4910.83 5509.22 100 1826.23 1900.63 45.56 3084.6 3608.57 54.44

1128.08 1117.01 25.56 129.54 1452.5 131.04 3.90

Total operating exp. 1121.06 Operating profit (GP operating exp) 675.17 +other income 30.01

1524.76 33.98

1632.1 31.64 29.82

2083.81 20.26 62.38 32.47 0.91 0.21

33.24 0.64 0.61

37.82 1.13 0.08

+ interall div.%inco. 6.39

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Profit before tax - Tax Net profit after tax

712.17 65.33 646.84

1693.56 2183.66 21.58 417.31 532.82 1.98

3499 8.50 26.00

39.64 9.67 29.97

1278.25 1650.80 19.60

INTERPRETATION :The common size statement are gives useful proportion of each component but they cant give the information about trend of individual item. Here, in all the three year sales increased so the percentage of cost of good sold also increases and the effort of both term increases gross profit. Total percentage of operating expenses increases so the net profit also increases.

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COMMON SIZE BALANCE SHEET

VALUE IN CRORES
particular 200506 Sources of fund Share capital 124.40 124.49 124.49 0.77 4.06 0.003 3.19 42.00 45.19 2.50 0.02 50.56 54.16 200607 200708

% OF SALES
200506 200607 200708

Share cap. Suspense 0.09 Reserve and surplus 913.78 Net worth Loan and fund Secured loan Unsecured stock Differed tax Net liability Total Application of fund 1221.93 229.90 1451.83 516.96 3067.06 1038.27

1039.29 2517.73 29.70 1763.78 2696.99 33.85

1151.25 982.66 427.38 757.84

39.84 7.50

29.50 10.95 40.45 14.36 100

19.73 15.22 39.95 10.89 100

1578.63 1740.50 47.34 560.25 542.35 18.81

3902.67 4979.84 100

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Fix assets Investment Current assets -current liability Net working capital

2678.20 172.39 613.72 516.87 960.85

3214.23 4763.61 87.32 483.45 706.67 736.71 (30.40) 235.50 18.47 170.90 927.06 5.62 20.01

82.36 12.39 18.11 18.88 (0.77) 6.50 0.47 100

90.06 3.43 18.62 23.15 (4.84) 7.57 2.52 100

1153.01 16.85 (225.95) 3.16 376.89 125.55 5.18 1.28

Loans and advances 158.80 provisions Total 39.18 3067.06

3902.67 4979.84 100

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INTERPRETATION:Balance show the percentage of each assets to the total assets as well as the percentage of each liability to the total liability and capital such percentage give only the change in proportion of one item like sales or total assets. In the year 2006-07 the percentage of share capital decreases loan increased so there is enough capital in business but here the percentage of differ tax and liability is decrease.

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Analysis of significant account policy 1. Basis of accounting

The financial statements are prepared under the historical cost convention on an accrual basis and in accordance with the applicable mandatory accounting standards. 2. Use of estimates.

Financial statements preparation is concern with the generally accepted accounting principles requires accepted and assumptions to be made the affects the reported amount of affects the reported amount of assets the reported amount o assets and liability on the date of financial statements and the reported amounts of revenues and expenses during the reported period. 3. Fixed assets Fixed assets are started at cost less accumulated depreciation.

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4. Foreign currency transaction Foreign currency transaction are accounted for at the rates prevailing on the date of the transaction. Foreign currency balance outstanding as at the year end rate. How ever, foreign currency transaction covered by forward contracts are valued at the spot rate at the inception of the contract. The premia arising on such forward contracts is amortised as an expense or income over the life of the contract exchange differences relating to fix assets acquired from a country outside India are adjusted to the cost of assets. Any other exchange difference is dealt with in the profit and loss account. 5. Financial derivatives. Financial instruments are used to hedge risk associated with foreign currency fluctuations and interest rates. The derivative contracts are closely linked with the underlying transaction, and are

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intended to be geld to maturity. These are accounted on the date of settlement. 6. Treatment of expenditure during construction period. Expenditure during construction period is include under capital work in progress and the same is allocated to the respective fixed assets on the completion of its construction. 7. Investment Current investment are carried at lower of cost or fair value. Long term investment are stated at cost after deducting provisions made for diminution other then temporary. 8. Inventories. Inventories are valued at the lower of weighted average cost and net realizable value expect scrap which is valued at net realizable value. 9. Leases

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a. In respect of lease transaction entered in to prior to 1st april,2001. Lease rentals of assets acquired are charged to the profit and loss account. b. i. Lease transaction entered after 1st april,2001. Assets acquired under leases where the

company has substantially all the risk and rewards of ownership are classified as finance leases. Such assets are capitalized at the inception of the lease at the present value of minimum leases payment and a liability is created for an equivalent amount. ii. Assets leased out under operating leases are

capitalized rental income is recognized on accrual basis over the lease term. 10. Depreciation and amortization. Depreciation is the accounts on the following basis. (1) Depreciation s provided on the straight line basis at the rates prescribed in schedule XIV to the companies Act,1956 except for the following.
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a. Motorcar at 14.14% per annum expect for motorcar given to the employees. b. Motorcar given to the employees as per the companies scheme is depreciated over the scheme period. c. Personal computers and laptops given to the employees as per the companies scheme at 31% per annum. (2) Assets acquired up to 30th sept,1987, are depreciated at the rates prevailing at the time of acquisition. 11. Impairment of assets; Assets is treated as impaired when the carrying cost of the assets exceeds its recoverable amount. An loss, if any charge in the profit and loss account in the year is find as impaired. Loss is recognized in prior year is recorded where is an indication that impairment losses recognized for the assets no longer exists.
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12. Employees benefits:i. Defined contribution plan are recognized as expense in the profit and loss account, as they are incurred. ii. Defined benefit plan :In the defined benefit plans using projected unit credit method. With accrual valuation at the end of each financial year. Obligation is measured by the present value of estimated future cash flows using a discount rate that is Indian government security Act prevailing market yield. 13. Borrowing cost Borrowing cost that are attributable to the acquisition, construction or production of a qualifying assets are capitalized as part of the cost of such assets is ready for Its intended use. A qualifying assets that necessarily required to get ready for its intended use.
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The difference between the face value and the issue price of discounted value non convertible debentures being in the nature of interest, is charged to profit and loss account on compound interest basis determined with reference to the yield inherent in the discount. 14. Provision for current and differed tax Provision for current tax is made on the basis of estimated taxable income for the current accounting period and in accordance with the provisions of the income tax Act 1961. Differed tax resulting from timing differences between book and taxable profit for the year is accounted for the using the tax rates and laws that have been en acted or substantively enacted as on the balance sheet.

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15. Revenue recognition Sales revenue is recognized on transfer of significant risk and reward of ownership of the goods to the buyer and stated net of sales tax, vat, trade discount and including excise duty rebates. Income from service is recognized as they are nendered. Base on agreement with the company.

16. Mines restoration expenditure. The company provides for the estimated expenditure required to restore quarries and mines. The total estimates of expenses is apportioned over the estimated of mineral reserve and provision.

17. Provisions, contigent liability and assets. Provision involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and is probable that there will be an outflow of resources
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contigent liabilities are not recognized but are disclosed. When contigent assets are neither recognized nor disclosed in the financial statement.

18. Employees share based payment. The company follows intrinsic value method for valuation of employees stock options. After expenses and profit and loss account over then vesting, adjusting for the actual and expecting vesting.

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ANALYSIS OF CASH FLOW STATEMENT

particular Cash flow from op. activity Profit before tax Adjustment Depreciation Provision for doubtful debt Bad debt written off Provision for retain earning Provision for mine reclamation Interest and dividend (income) Interest expenses Unreleased foreign expenses P&L on sale of fix assets P&L on sale of investment profit before working cap.change Inventories Sundry debtors 216.03 (2.81) 0.17 2.45 (6.99) 89.64 (0.21) 0.79 (0.08) 587.39 (40.05) (11.92) 226.25 0.76 4.42 1.64 (29.82) 86.83 0.05 (2.29) (0.26) 1454.07 (54.01) (11.71) 237.23 0.77 1.79 7.40 1.87 (37.47) 75.67 (8.97) 1.18 (1.28) 1755.20 (176.18) (34.90) 285.59 1166.19 1507.01 2005- 06 2006- 07 2007- 08

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Loan and advances Trade payment and other liability Cash generated from operation Current tax paid Benefit tax paid Net cash Cash flow from investing activity Purchase of fix assets Sale of fix assets I/de. In current investment Profit on sale of investment Interest and dividend received Net cash from finance investing Cash flow from finance activity Payment of long term loan Proceeds from long term borrow Repayment of short term loan

10.78 63.35 606.55 (51.59) (3.03) 551.63

(80.29) 222.27 1530.33 (417.63) (4.61) 1113.09

(134.73) 416.14 1855.55 (480.27) 1375.26

(217.29) 1.13 (148) 0.08 6.84 9357.240

(765.68) 0.41 (311.00) 0.26 29.76 91046.250

(17.98) 5.80 312.34 1.28 37.68 (1441.79)

(167.33) 217.15 (137.86) (92.32)

(76.00) 200.43 6.76 (88.41)

(285.00) 161.55 (290.11) (89.030)

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Interest paid Dividend paid Corporate dividend tax Net cash use in finance activity Net increase in cash & equivalent (A+B+C) Cash & equivalent at year ended Cash transfer from nccl on 1/10/05 Cash & equivalent at end of year

(9.33) (1.33)

(71.58) (10.04)

(191.02)

( 938.84)

77.63

3.37 56.26 197 61.60

27.99 61.60 89.59

11.10 89.59 100.69

COMMENTS :In business company has enough and more cash as compare to past year. Company spend more expense and their side company also received more income from non operating department.

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Conclusion
Particular Ratio Net profit ratio Return on capital employed Current ratio Debt equity ratio Total assets to turnover ratio 2005-06 % 6.96 0.13 1.39 20.92 0.91 2006-07 % 15.92 0.40 1.27 11.36 1.05 2007-08 % 18.29 0.41 1.02 6 0.88

Total profitability has increases in all the three year up to 2004-05 to 2006-07. The return on capital employed ratio increase 2005-06 to 2007-08 this increasing up to 0.13 to 0.41%. All the three year current ratio decrease. and also debt equity ratio is decreasing.

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BIBLIOGRAPHY
To prepare this report I used 3 year annual report of the ultratech cement company and the year are 200506, 2006-07 & 2007-08. I have also used book and companies website that is www.ultratech cement.com I have also used the book to preparation this report. Company accountancy B.S. shah prakashan.

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ANNEXURE The photocopy of 2007-08 (1) Director report (2) Auditor report

(3) Balance sheet (4) Profit & loss account (5) All schedules (6) Cash flows statement 2006-07 (1) Balance sheet (2) Profit and loss account (3) All schedules 2005-06 (1) Balance sheet (2) Profit and loss account (3) All schedules.

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