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A REPORT ON FINANCIAL ANALYSIS OF

ULTRATECH CEMENT LIMITED

SUBMITTED TO: DR. P.K.PRIYAN

PREPARED BY: SHWETA GODHANI (11039) SEMESTER II DIVISION A

G.H. PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT SARDAR PATEL UNIVERSITY

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INDEX

SR. NO.
1 2 3 4 5 6 7 8

PARTICULARS
OVERVIEW OF THE COMPANY PROFIT AND LOSS ACCOUNTS BALANCE SHEET CASH FLOW STATEMENT RATIO ANALYSIS SHAREHOLDING PATTERN DIDVIDEND DISTRIBUTION BIBLIOGRAPHY

PAGE NO.
3 5 7 9 11 20 21 22

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OVERVIEW OF THE COMPANY


The Aditya Birla Group, founded in 1957, is an Indian multinational conglomerate corporation headquartered in Mumbai, India. It operates in 33 countries with more than 133,000 employees worldwide. The group has diversified business interests and is dominant player in all the sectors in which it operates such as viscose staple fibre, metals, cement, viscose filament yarn, branded apparel, carbon black, chemicals, fertilisers, insulators, financial services, telecom, BPO and IT services. The Aditya Birla group is a US$ 35 billion conglomerate which gets 60 % of its revenues from outside India. The Aditya Birla Group has been adjudged the best employer in India and among the top 20 in Asia by the Hewitt-Economic Times and Wall Street Journal Study 2007. The origins of the group lie in the conglomerate once held by one of India's foremost industrialists Mr. Ghanshyam Das Birla. The Aditya Birla Group is ranked No. 4 in the world and No.1 in Asia Pacific in the Top Companies for Leaders study (2011), conducted by Aon Hewitt, Fortune magazine and RBL. The Aditya Birla Group is the eighth-largest cement producer in the world. It was incorporated on 24 August 2000 as L&T Cement Limited. The Cement business of Larsen & Toubro Limited demerged and vested in company in 2004. The Grasim acquired management control in July 2004. Together with Grasim, one of the largest cements producers in India. The Aditya Birla Group has renamed L&T Cement, which it had earlier acquired from Larsen & Toubro, as `UltraTech', making it the third big cement brand of the flagship Grasim Industries. Its name changed t0o UltraTech Cement Limited with effect from 14 October 2004. The Narmada Cement Company Limited amalgamated with UltraTech in May 2006. The Cement business of Grasim demerged and vested in Samruddhi Cement Limited in May 2010. The Samruddhi Cement Limited amalgamated with UltraTech Cement Limited in July 2010. UltraTech Cement Limited and its subsidiaries have an annual capacity of 52 million tonnes, making it among the top 10 producers of cement globally. UltraTech is also the largest manufacturer of White Cement in India. The Group now has over 31 million tonnes per annum (TPA) of cement production capacity, of which 17 million TPA comes from UltraTech. This makes the Group the eighth largest cement manufacturer in the world. UltraTech Cement has 11 integrated plants, 15 grinding units, five bulk terminals and 92 RMC plants spanning India, UAE, Bahrain, Bangladesh and Sri Lanka. UltraTech Cement is also India's largest exporter of cement clinker reaching out to meet demand in countries around the Indian Ocean, Africa, Europe and the Middle East. The company's subsidiaries are Dakshin Cements Limited, Harish Cements Limited, UltraTech Cement Lanka (Pvt.) Ltd, and UltraTech Cement Middle East Investments Limited, which completed the acquisition of
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ETA Star Cement together with its operations in the UAE, Bahrain and Bangladesh, and acquired management control. Most of the plants have ISO 9001, ISO 14001 and OHSAS 18001 certification. In addition, two plants have received ISO 27001 certification and four have received SA 8000 certification. The process is currently underway for the remaining plants. The company exports over 2.5 million tonnes per annum, which is about 30 per cent of the country's total exports. The export market comprises of countries around the Indian Ocean, Africa, Europe and the Middle East. Export is a thrust area in the company's strategy for growth. UltraTech's products include Ordinary Portland cement, Portland Pozzolana cement and Portland Blast Furnace Slag cement.

Ordinary Portland cement Portland Blast Furnace Slag cement Portland Pozzolana cement Cement to European and Sri Lankan norms

ORDINARY PORTLAND CEMENT: Ordinary Portland cement is the most commonly used
cement for a wide range of applications. These applications cover dry-lean mixes, generalpurpose ready-mixes, and even high strength pre-cast and pre-stressed concrete.

PORTLAND BLAST FURNACE SLAG CEMENT: Portland blast-furnace slag cement


contains up to 70 per cent of finely ground, granulated blast-furnace slag, a non-metallic product consisting essentially of silicates and alumino-silicates of calcium. Slag brings with it the advantage of the energy invested in the slag making. Grinding slag for cement replacement takes only 25 per cent of the energy needed to manufacture Portland cement. Using slag cement to replace a portion of Portland cement in a concrete mixture is a useful method to make concrete better and more consistent. Portland blast-furnace slag cement has a lighter colour, better concrete workability, easier finishability, higher compressive and flexural strength, lower permeability, improved resistance to aggressive chemicals and more consistent plastic and hardened consistency.

PORTLAND POZZOLANA CEMENT: Portland Pozzolana cement is ordinary Portland


cement blended with Pozzolanic materials (power-station fly ash, burnt clays, ash from burnt plant material or silicious earths), either together or separately. Portland clinker is ground with gypsum and Pozzolanic materials which, though they do not have cementing properties in themselves, combine chemically with Portland cement in the presence of water to form extra strong cementing material which resists wet cracking, thermal cracking and has a high degree of cohesion and workability in concrete and mortar.

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PROFIT AND LOSS ACCOUNT


(Rs. In crs)

PARTICULARS Income Sales Turnover Excise Duty Net Sales Other Incomes Stock Adjustments Total Income Expenditure Raw Materials Power and Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Expenses Total Expenses Operating Profit PBDIT Interest PBDT Depreciation Other Written Off PBT Extra-ordinary Items PBT (Post Extra-ord. Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per Share Data (Annualized) Shares in issue (lakhs) Earnings Per Share (Rs) Equity Dividend (%) Book Value (Rs)

MARCH 11

MARCH 10

MARCH 09

MARCH 08

14,858.60 1,652.96 13,205.64 286.67 66.11 13,558.42 2,752.86 3,122.59 666.50 600.04 0.00 3,587.40 0.00 10,729.39 2,542.36 2,829.03 277.11 2,551.92 765.73 0.00 1,786.19 125.52 1,911.71 507.48 1,404.23 7,976.53 0.00 164.42 26.67 2,740.42 51.24 60.00 389.04

7,729.13 686.31 7,042.82 122.71 4.59 7,170.12 1,593.03 1,430.91 250.28 97.42 1,653.57 48.58 -4.02 5,069.77 1,977.64 2,100.35 124.11 1,976.24 388.08 0.00 1,588.16 0.00 1,588.16 494.92 1,093.24 3,476.74 0.00 74.69 12.41 1,244.87 87.82 60.00 370.05

7,160.42 774.92 6,385.50 75.35 86.34 6,547.19 1,280.31 1,712.98 216.76 92.58 1,405.51 28.88 -8.38 4,728.64 1,743.20 1,818.55 134.09 1,684.46 323.00 0.00 1,361.46 0.00 1,361.46 384.44 977.02 3,448.33 0.00 62.24 10.58 1,244.86 78.48 50.00 289.22

6,286.24 773.81 5,512.43 98.67 23.42 5,634.52 1,032.34 1,253.26 171.55 61.52 1,267.57 35.48 -13.37 3,808.35 1,727.50 1,826.17 81.93 1,744.24 237.23 0.00 1,507.01 0.00 1,507.01 499.40 1,007.61 2,776.01 0.00 62.24 10.58 1,244.86 80.94 50.00 216.59

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(Rs. In crs)

PARTICULARS Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Expenses Total Expenses Operating Profit PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord. Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (Annualized) Shares in issue (lakhs) Earnings Per Share (Rs) Equity Dividend (%) Book Value (Rs)

MARCH 07

MARCH 06

MARCH 05

MARCH 04

5,484.35 575.30 4,909.05 61.41 -30.76 4,939.70 871.30 1,138.32 117.22 56.22 1,241.44 30.15 0.00 3,454.65 1,423.64 1,485.05 92.61 1,392.44 226.25 0.00 1,786.19 125.52 1,911.71 507.48 1,404.23 7,976.53 0.00 164.42 26.67 2,740.42 51.24 60.00 389.04

3,785.29 485.84 3,299.45 24.59 39.12 3,363.16 772.84 910.11 92.26 48.19 935.24 18.32 0.00 2,776.96 561.61 586.20 96.99 489.21 216.03 0.00 273.18 12.41 285.59 55.83 229.76 2,004.12 0.00 21.79 3.06 1,243.99 18.47 17.50 83.46

3,132.07 451.02 2,681.05 -55.54 20.90 2,646.41 630.03 783.13 72.96 56.27 746.60 41.74 0.00 2,330.73 371.22 315.68 128.05 187.63 221.78 0.00 -34.15 0.55 -33.60 -36.45 2.85 1,700.70 0.00 9.33 1.33 1,243.99 0.23 7.50 85.78

2,704.86 440.74 2,264.12 53.77 -8.27 2,309.62 474.07 630.59 66.67 105.75 578.43 57.38 0.00 1,912.89 342.96 396.73 138.85 257.88 198.90 15.57 43.41 5.79 49.20 10.37 38.83 1,438.82 0.00 6.22 0.80 1,243.99 3.12 5.00 86.41

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BALANCE SHEET
(Rs. In crs)

PARTICULARS Sources of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities Application of Funds Gross Block Less: Accumulated Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deferred Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs)

MARCH 11

MARCH 10

MARCH 09

MARCH 08

274.04 274.04 4.78 0.00 10,387.22 0.00 10,666.04 2,789.76 1,354.84 4,144.60 14,810.64 17,942.27 6,542.02 11,400.25 1,105.32 3,730.32 1,956.52 602.29 144.79 2,703.60 1,055.10 0.00 3,758.70 0.00 4,610.46 573.49 5,183.95 -1,425.25 0.00 14,810.64 4,220.47 389.04

124.49 124.49 1.99 0.00 4,482.17 0.00 4,608.65 854.19 750.33 1,604.52 6,213.17 8,078.14 3,136.46 4,941.68 259.37 1,669.55 821.70 215.83 83.73 1,121.26 374.92 0.00 1,496.18 0.00 1,992.60 161.01 2,153.61 -657.43 0.00 6,213.17 420.26 370.05

124.49 124.49 1.68 0.00 3,475.93 0.00 3,602.10 1,175.80 965.83 2,141.63 5,743.73 7,401.02 2,765.33 4,635.69 677.28 1,034.80 691.97 186.18 104.49 982.64 395.71 0.00 1,378.35 0.00 1,860.59 121.80 1,982.39 -604.04 0.00 5,743.73 355.07 289.22

124.49 124.49 0.77 0.00 2,571.73 0.00 2,696.99 982.66 757.84 1,740.50 4,437.49 4,972.60 2,472.14 2,500.46 2,283.15 170.90 609.76 216.61 100.69 927.06 390.43 0.00 1,317.49 0.00 1,708.96 125.55 1,834.51 -517.02 0.00 4,437.49 645.17 216.59

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(Rs. In crs)

PARTICULARS Sources of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities Application of Funds Gross Block Less: Accumulated Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deferred Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs)

MARCH 07

MARCH 06

MARCH 05 MARCH 04

124.49 124.49 0.00 0.00 1639.29 0.00 1763.78 1151.25 427.38 1578.63 3342.41 4784.70 2267.42 2517.28 696.95 483.45 433.58 183.50 89.59 706.67 265.46 0.00 972.13 0.00 1308.93 18.47 1327.40 -355.27 0.00 3342.41 1942.56 141.69

124.40 124.40 0.09 0.00 913.78 0.00 1,038.27 1,221.93 229.90 1,451.83 2,490.10 4,605.38 2,068.21 2,537.17 141.03 172.39 379.57 172.55 61.50 613.62 168.23 0.10 781.95 0.00 1,103.26 39.18 1,142.44 -360.49 0.00 2,490.10 685.42 83.46

124.40 124.40 0.00 0.00 942.73 0.00 1,067.13 1,253.35 278.03 1,531.38 2,598.51 4,304.29 1,755.39 2,548.90 48.18 184.79 283.71 171.95 56.26 511.92 338.86 0.00 850.78 0.00 1,010.27 23.87 1,034.14 -183.36 0.00 2,598.51 130.74 85.78

124.40 124.40 0.51 0.00 950.54 0.00 1,075.45 1,245.01 309.07 1,554.08 2,629.53 4,176.46 1,448.56 2,727.90 24.06 238.09 223.17 177.57 41.83 442.57 302.64 0.00 745.21 0.00 1,085.24 36.01 1,121.25 -376.04 15.52 2,629.53 4,605.38 2,068.21

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CASH FLOW STATEMENT

It is a statement showing inflow cash and out flow of cash during the last year and as a result the balance of cash at the end of the year, is known as Cash Flow Statement. This statement helps management to know the actual liquid position or position of cash on hand and also to ascertain whether the business is able to get enough cash to meet the liabilities as and when they arise. The cash inflows and cash outflows are to be shown under three headings: Cash Flows from operating Activities Cash Flows from Investing Activities Cash Flow from Financing Activities

(Rs. In crs)

PARTICULARS Net Profit Before Tax Net Cash From Operating Activities Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing Activities Net (decrease)/increase In Cash and Cash Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents

MARCH 11 1786.19 2074.26 -1648.91 -430.85 -5.50 150.29 144.79

MARCH 10 1588.16 1571.93 -851.66 -741.03 -20.76 104.49 83.73

MARCH 09 1361.46 1457.57 -1645.43 191.66 3.80 100.69 104.49

MARCH 08 1507.01 1375.26 -1441.79 77.63 11.10 89.59 100.69

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(Rs. In crs)

PARTICULARS Net Profit Before Tax Net Cash From Operating Activities Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing Activities Net (decrease)/increase In Cash and Cash Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents

MARCH 07 1166.19 1113.09 -1046.25 -38.84 27.99 61.60 89.59

MARCH 06 285.59 551.63 -357.24 -191.02 3.37 58.23 61.60

MARCH 05 43.24 337.42 -87.18 -235.81 14.43 41.83 56.26

MARCH 04 49.20 381.35 -163.04 -176.60 41.80 0.03 41.83

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RATIO ANALYSIS

Management should be interested in knowing financial strengths of the firm to make the best use of it and to be able to spot out financial weaknesses of the firm to take suitable corrective actions. Financial analysis is the process of identifying the financial strengths and weaknesses of the firm by properly establishing relationships between the items of the balance sheet and the profit and loss account. Financial analysis can be undertaken by management of the firm or by parties outside the firm like owners, creditors, investors and others. Ratio Analysis is a powerful tool of financial analysis.

WHAT IS RATIO?
A ratio is defined as "the indicated quotient of two mathematical expressions" and as "the relationship between two or more things". The relationship between two accounting figures expressed mathematically is known as 'financial ratio'. Rations help to summaries large quantities of financial data and to make qualitative judgment about the firm's financial performance. It measures the firm's liquidity. The point to note is that a ratio reflecting a quantitative relationship helps to form a qualitative judgment.

CLASSIFICATION OF RATIOS
The parties interested in financial analysis are short and long term creditors, owners and management. Short term creditors main interest is I the liquidity position or short term solvency of the firm. Long term creditors on the other hand are more interested in the long term solvency and profitability of the firm. Similarly, owners concentrate on the firm's profitability and financial condition. Management is interested in evaluating every aspect of the firm's performance. They are classified into 4 categories:

Liquidity Ratios Leverage Ratios Activity Ratios Profitability Ratios

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LIQUIDITY RATIOS
It is extremely essential for a firm to be able to meet its obligation as they become due. Liquidity ratios measures the ability of the firm to meet its current obligations in fact, analysis of liquidity needs the preparation of cash budgets and cash and fund flow statements; but liquidity ratios, by establishing a relationship between cash and other current assets to current obligations, provide a quick measure of liquidity.

LEVERAGE RATIOS
The second category of financial ratios is leverage or capital structure ratios. The long-term creditors would judge the soundness of a firm on the basis of the long-term financial strength measured in terms of its ability to pay the interest regularly as well as repay the installment of the principal on due dates on in one lump sum at the time of maturity.

PROFITABILITY RATIOS
A company should earn profits to survive and grow over a long period of time. Profits are essential but it would be wrong to assume that every action initiated by management of a company should be aimed at maximizing profits, irrespective of social consequences. Profit is the difference between revenues and expenses over a period of time. Profit is the ultimate output of a company and it will have no future if it fails to make sufficient profits. Generally, there are two types of profitability ratios: 1. Profitability in relation to sales. 2. Profitability in relation to investment.

ACTIVITY RATIOS
The turn over ratios measure the efficiency with which assets are being used in business. These ratios show how fast the assets are being turned in to sales. The turnover ratio is a test of relationship between sales and the various assets of the firm like stock, debtors, current assets, fixed assets or total assets.

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CURRENT RATIO This ratio establishes a relationship between current assets and current liabilities. The current ratio is a measure of firm's short term solvency. Current Ratio = Current Assets Current Liabilities YEAR CURRENT RATIO 2011 0.67 2010 0.67 2009 0.59 2008 0.58 2007 0.71 2006 0.67 2005 0.68 2004 0.60

Interpretation: In a case of the year 2011, the current ratio was 0.67:1. It implies that for every one rupee of current liabilities, current assets of 0.67 rupees are available to meet them. The current ratio for the year 2009 and 2008 are 0.59:1 and 0.58:1 respectively. As compared to the ideal ratio (2:1), the liquidity position is no better because the company has large amount of creditors. In short the company does not have enough working capital to meet their day to day requirements.

QUICK RATIO Quick ratio establishes a relationship between quick or liquid, assets and current liabilities. It is also known as acid test ratio. Quick Ratio = (Current Assets Inventory) Current Liabilities YEAR QUICK RATIO 2011 0.34 2010 0.30 2009 0.34 2008 0.38 2007 0.40 2006 0.34 2005 0.54 2004 0.46

Interpretation: It believed that liquid assets should at least cover the liquid liabilities i.e. the ratio should be 1:1. The quick ratio computed above for the year 2011 is 0.34:1, which is less than half of the ideal ratio. This is because company has large amount of inventories. In nutshell the company has less than the ideal quick ratio in last three years. The current ratio has remained almost same over the years.

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DEBT EQUITY RATIO The relationship between borrowed funds and owners capital is a popular measure of the long term financial solvency of a firm. This relationship is shown by the debt-equity ratio. Debt Equity Ratio = Total Debt Net Worth YEAR DEBT EQUITY RATIO 2011 0.39 2010 0.35 2009 0.59 2008 0.65 2007 0.90 2006 1.40 2005 1.44 2004 1.45

Interpretation: The debt-equity ratio reflects the relative contribution of creditors and owners of the firm. The ratio for the year 2011 is 0.39 that means the firm has total debt of Rs.0.39 against each rupee of owners fund; it also suggests that the outside have less amount of claim in the firm. The ratio for the year 2009 is 0.59 that mean the firm has total debt of Rs.0.59 against each rupee of owners fund. And for the year 2005 the debt -equity ratio is 1.44 which is higher than the previous six years. Because of high debt equity ratio, the share holders of the company can get the benefit of trading on equity. But over the years the ratio has reduced which means which is not in favor of the shareholder .

INTEREST COVERAGE RATIO Interest coverage ratio is used to measure a company's earnings relative to the amount of interest that it pays. The interest coverage ratio is considered to be a financial leverage ratio in that it analyzes one aspect of a company's financial viability regarding its debt. Interest coverage = EBIT (Operating Profit) Interest YEAR INTEREST COVERAGE 2011 7.53 2010 14.97 2009 12.75 2008 20.85 2007 14.45 2006 4.11 2005 1.60 2004 1.41

Interpretation: The fixed interest coverage ratio computed above for the year 2011 is 7.53 times, which shows that the profit available before interest and taxes is 7.53 times the interest payable. The ratio for the year 2008 is 20.85 times which is very high because of decreased in the interest payment of the company.

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INVENTORY TURNOVER RATIO Inventory turnover is a measure of the number of times inventory is sold or used in a time period such as a year. Inventory turnover is the ratio of cost of goods sold to average inventory. Inventory turnover = Cost of Goods Sold Av. Inventory Av. Inventory = Opening Stock + Closing Stock 2 YEAR INVENTORY TURNOVER 2011 17.69 2010 22.65 2009 22.89 2008 31.16 2007 11.46 2006 8.75 2005 9.53 2004 10.29

Interpretation: The ratio computed above for the year 2011 is 17.69 times, which shows 17.69 times the inventory is converted into sales during the year by the firm. The ratio for the year 2008 is 32.16 times which was the highest during last few years and it was 8.75 times in the year 2008. It shows that companys inventory turnover ratio was continuously increasing year by year, which shows high sales and ultimately shows companys ability to earn profit. Here the company will be able to trade on a smaller margin of the gross profit. The ratio is also higher in the year 2010 as the inventory of the company had increased.

DEBTORS TURNOVER Debtors turnover ratio or accounts receivable turnover ratio indicates the velocity of debt collection of a firm. In simple words it indicates the number of times average debtors (receivable) are turned over during a year. Debtors turnover = Net credit sales Av. Debtors YEAR DEBTORS TURNOVER 2011 32.28 2010 35.04 2009 31.71 2008 27.55 2007 27.58 2006 19.16 2005 15.34 2004 12.75

Interpretation: The ratio computed for the year 2011 was 32.28 times, for the year 2009 the ratio was 31.71 times and for the year 2005 it was 15.34. The ratio is constantly increasing over the last years which show the efficiency of the credit management of the firm. The average collection period for the year is approximately 11 days which shows the better quality of debtors.
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INVESTMENT TURNOVER Investment turnover is a measure of efficiency in the use of invested capital. Investment turnover = Sales

Net worth + Long term liabilities YEAR


INVESTMENT TURNOVER

2011 17.69

2010 22.65

2009 22.89

2008 31.16

2007 34.61

2006 21.20

2005 11.04

2004 12.12

Interpretation: The ratio for the year 2011 is 17.69 and it was 31.16 for the year 2008 and 11.04 in the year 2005. It was less till 2005 and then suddenly increased for consecutive two years, but it again decreased. This means that the company had good return on investment.

FIXED ASSETS TURNOVER Fixed assets turnover ratio is also known as sales to fixed assets ratio. This ratio measures the efficiency and profit earning capacity of the concern. Higher the ratio, greater is the intensive utilization of fixed assets. Lower ratio means under-utilization of fixed assets. Fixed assets turnover = Cost of sales Net fixed assets YEAR
FIXED ASSETS TURNOVER

2011 0.74

2010 0.87

2009 0.86

2008 1.11

2007 1.67

2006 1.25

2005 1.01

2004 0.83

Interpretation: The ratio computed above for the year 2008 was 1.11 times, for the year 2009 it was 0.87 times and in the year 2011 it is 0.74 times. This ratio was steady during last 2005 to 2008, but gradually it is falling. It shows that the fixed assets of the firm are not used effectively to earn profits.

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TOTAL ASSETS TURNOVER The total asset turnover represents the amount of revenue generated by a company as a result of its assets on hand. This equation is a basic formula for measuring how efficiently a company is operating. Total assets turnover = Sales Total assets YEAR
TOTAL ASSET TURNOVER

2011 0.89

2010 1.14

2009 1.11

2008 1.24

2007 1.47

2006 1.33

2005 1.03

2004 0.87

Interpretation: The ratio computed above for the year 2011 is 0.89 times, the ratio for the year 2009 is 1.11 times and it is 0.87 times in the year 2004. It shows the firm is using its total assets in good manner to generate profit by sales. The ratio in the year 2008 is 1.24 times which is higher as compared to the year 2009 and 2010 because of increased in the fixed assets of the company. The total assets turnover ratio of the company more or less remained the same during the last few years.

OPERATING PROFIT MARGIN A ratio used to measure a companys pricing strategy and operating efficiency. Operating margin is a measurement of what proportion of a companys revenue is left over after paying for variable costs of production. Operating margin = Operating profit Net Sales YEAR OPERATING PROFIT MARGIN 2011 19.33 2010 28.08 2009 27.29 2008 31.33 2007 29.00 2006 17.02 2005 13.84 2004 0.87

Interpretation: The operating profit ratio for the year 2011 is 19.33%, which shows that on the sale of Rs.100 the company earns an operating profit of Rs.19.33. The ratio for the year 2008 is 31.33% and for the year 2004 it is 0.87%. It shows that gross profit of the company in the year 2008 is quite good but it had decreased.

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GROSS PROFIT MARGIN Gross margin is the difference between revenue and cost before accounting for certain other costs. The gross margin tends to remain stable over time. Significant fluctuations can be a potential sign of fraud or accounting irregularities. Gross Profit Ratio = Gross profit Net sales YEAR
GROSS PROFIT MARGIN

2011 13.53

2010 22.56

2009 22.24

2008 27.03

2007 28.07

2006 14.90

2005 10.58

2004 11.37

Interpretation: The gross profit ratio computed above for the year 2011 is 13.53%, which shows that on the sale of Rs.100 the company earns gross profit of Rs.13.53. The ratio for the year 2007 is 28.07% and for the year 2004 it is 11.37%. It shows that gross profit of the company in the year 2007 is quite good but it had decreased in 2009 and 2011 because of increased in the raw material cost.

NET PROFIT MARGIN Net profit divided by net revenues, often expressed as a percentage. This number is an indication of how effective a company is at cost control. The higher the net profit margin is, the more effective the company is at converting revenue into actual profit. The net profit margin is a good way of comparing companies in the same industry, since such companies are generally subject to similar business conditions. However, the net profit margins are also a good way to compare companies in different industries in order to gauge which industries are relatively more profitable also called net margin. Net Profit Ratio = Net profit Net sales YEAR
NET PROFIT MARGIN

2011 10.43

2010 15.30

2009 15.06

2008 17.99

2007 15.75

2006 6.91

2005 0.10

2004 1.69

Interpretation: The net profit ratio calculated above for the year 2011 is 10.43%, which shows that on the sale of Rs.100 there is the net profit of Rs 10.43. For the year 2008 the net profit ratio is 17.99% which is higher than the previous year. The net profit ratio declined in the year 2011 because of increasing in the depreciation as the result of the full year impact of capitalization of new project.

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RETURN ON CAPITAL EMPLOYED The prime objective of making investments in any business is to obtain satisfactory return on capital invested. Hence, the return on capital employed is used as a measure of success of a business in realizing this objective. Return on capital employed establishes the relationship between the profit and the capital employed. It indicates the percentage of return on capital employed in the business and it can be used to show the overall profitability and efficiency of the business. ROCE = EBIT

Total assets current liabilities YEAR


ROCE

2011 19.61

2010 28.53

2009 29.21

2008 40.86

2007 42.96

2006 14.75

2005 2.77

2004 12.17

Interpretation: The ratio of return on capital employed was 2.77 in 2005 and 42.96 in 2007 which was the highest. This means that for every 100 rupees of capital employed, the company earned a return of rupees 42.96. This shows that the company had maximum return in the year 2007. Higher the ratio higher is the efficiency of the company.

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SHARE HOLDING PATTERN

PARTICULARS

NO. OF SHARES (Mn) 173.61 0.00 17.49 52.12 11.46 19.39 274.06

HOLDINGS (%) 63.4 0.0 6.4 19.0 4.2 7.1 100

Total Promoter Holdings Total Govt. Holding (Promoter + Non Promoter) Total Domestic Institutions (Banks/ FI + MF / UTI) Total Foreign Holdings (FII+NRI holdings) Total Non Promoter Corporate Holdings Total Public & Others (Individuals + HUF + Clearing members) Total

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DIVIDEND DISTRIBUTION

YEAR END 25-Aug-11 21-Jun-10 09-Jul-09 09-Jul-08 15-Mar-07

DIVIDEND PER SHARE 6.0 6.0 5.0 5.0 4.0

DIVIDEND (%) 60.0 60.0 50.0 50.0 40.0

REMARK Final Final Final Final Final

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BIBLIOGRAPHY
WEBSITES:
http://www.ultratechcement.com/ http://www.adityabirla.com/our_companies/indian_companies/ultratech_cement.htm

http://www.indiainfoline.com/Markets/Company/Background/Company-Profile/UltraTechCement-Ltd/532538 http://economictimes.indiatimes.com/ultratech-cement-ltd/balancesheet/companyid-3027.cms http://www.moneycontrol.com/india/stockpricequote/cementmajor/ultratechcement/UTC01

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