PROJECT REPORT

ON

FINANCIAL ANALYSIS OF ACC LTD.

Submitted for partial fulfillment of requirement for the

BACHELOR OF MANAGEMENT
STUDIES

award of degree of

Of

Mumbai University,(Mumbai)
Session (2013-2016)

Supervision By: LOKESH JAIN

Prepared/Submitted by
ADITYA NAIK
Designation: Chief Manager ROLL NO:
M13024
Department: ACC-FICO.
B.M.S: Vth SEMISTER

DECLARATION
I ADITYA MANJUNATH NAIK declare that the
report of the project work entitled financial analysis
of ACC LTD is based on my own work carried out
during the course of my study under the
supervision of MR.LOKESH JAIN, Chief ManagerFinance, ACC LTD.
I assert that the statement made and conclusion
drawn are an outcome of my project work. I further
declare that to the best of my knowledge and
belief that the project report does not contain any
part of any work which has been submitted for the
award of any other degree/diploma certificate in
this university or any other university

ADITYA. M. NAIK
(M13024)

ACKNOWLEDGEMENT
I would like to express my profound gratitude and
grateful thanks to MONUJ GOGOI and JESSICA
CORREIA (HRD) for giving me opportunity
undertake a research project in ACC LTD

I am really thankful to LOKESH JAIN Chiefmanager(Finance) for making all kinds of

arrangements to carry the project successfully and
for guiding and helping me to solve all kinds of
problems regarding the project work. His
systematic way of working and in comparable
guidance has inspired the pace of the project to a
great extent.

I would like to thank all the employees of ACC LTD

who have directly or indirectly helped me with their
moral support for the completion of my project.

Objective of the study

To study about ACC Ltd.
To compare the financial ratio (status) of ACC Ltd (2014 with 2013)
To brought-down the comparative financial analysis of ACC Ltd. (2014 with
2013)

Methodology
The whole study can be termed as a desk research. Hence there is no field work
and collection of primary data for this research except for secondary information
obtained by the medium of internets, journals and magazines and companys
annual financial report.

Introduction to the study

Finance is one of the most primary requisites of a business and the modern
management obviously depends largely on the efficient management of finance.
Financial statements are prepared primarily for decision making. They play a
dominant role in setting the framework of managerial decisions. Thus the right
quantity of money for liquidity considered right quality whether owned or
borrowed funds at the right time to preserve solvency from the right sources at the
right cost of capital.
Main subject matter of this project is to financial analysis of a company to
recognize and compare the companys current financial position with its financial
position of previous year. Through which we will able to get a clear picture about
the company.

WHAT IS FINANCIAL ANALYSIS?

It is the assessment of: Effectiveness with which funds (investment and debt) are employed in a
firm.
Efficiency and employed in a firm.
Value and safety of debtors claims against the firms assets.
Financial analysis is defined as the process of identifying financial strengths and
weaknesses of the firm by properly establishing relationship between the items of
the balance sheet and profit and loss account. It shows effectiveness of fund
allocation and utilization. There are different types of tools and techniques to
analysis financial position of the company. The results of financial techniques
provide important inputs into security valuation.

Learning objectives
1.
2.
3.
4.

To study the financial position of the company.

Prepare and interpret financial statements in comparative form.
To get an overview of an industry.
To analyze the profitability and solvency position of the unit with the
existing tools of financial analysis.

Selection of industry
Here I have selected cement industry for study. Cement industry in India is a very
old industry. India is the second largest cement producing country after China in
the world.

Selection of company

ACC is Indias NO.1 cement co. It is one of the oldest cement companies in India.
So we have chosen this company to analyze how this performs in terms of finance.

PROJECT HIGHLIGHTS
SR.N
O
1

PARTICULARS
ABOUT THE COMPANY
Values
Corporate profile
Customer focus
Customer approach
Customer experience
Channel partners
Cementing relationships
Embracing tomorrow
Recognition
Performance Highlights
Cost and profit Ratio
ABOUT its Subsidiary companies

FINANCIAL HIGHLIGHTS

VALUE ADDED STATEMENTS

BALANCE SHEET

PROFIT AND LOSS STATEMENT

CASH FLOW STATEMENT

FINANCIAL ANALYSIS

RATIO ANALYSIS

PAGE
NO.

CONCLUSION (S-W-O-T Analysis)

ABOUT THE COMPANY

CC Limited is Indias foremost manufacturer of cement and ready mixed concrete with a

countrywide network of factories and sales offices. Established in 1936, ACC is acknowledged
as a pioneer and trendsetter in cement and concrete technology. ACC regularly wins accolades
for best practices in environment management at its plants and mines, and for demonstrating
good corporate citizenship. The quality of its products and customer services make ACC the
most preferred brand in the Indian cement industry. ACC Limited is part of the worldwide
Holcim Group.
ACCs brand name is synonymous with cement and enjoys a high level of equity in the Indian
market.ACC's operations are spread throughout the country with 17 modern cement factories,
more than 50 Ready mix concrete plants, 21 sales offices, and several zonal offices. It has a
workforce of about 9,000 persons and a countrywide distribution network of over 9,000 dealers.
This company has been a trendsetter and important benchmark for the cement industry in many
areas of cement and concrete technology. ACC has a unique track record of innovative research,
product development and specialized consultancy services. The company's various
manufacturing units are backed by a central technology support services center - the only one of
its kind in the Indian cement industry.
Among the first companies in India to include commitment to environmental protection as one of
its corporate objectives, the company installed sophisticated pollution control equipment as far
back as 1966, long before pollution control laws came into existence. Today each of its cement
plants has state-of-the art pollution control equipment and devices.
ACC plants, mines and townships visibly demonstrate successful endeavors in quarry
rehabilitation, water management techniques and greening activities. The company actively
promotes the use of alternative fuels and raw materials and offers total solutions for waste
management including testing, suggestions for reuse, recycling and co-processing.

ACC has taken purposeful steps in knowledge building. They run two institutes that offer
professional technical courses for engineering graduates and diploma holders which are relevant
to manufacturing sectors such as cement. The main beneficiaries are youth from remote and
backward areas of the country.
ACC has made significant contributions to the nation building process by way of quality
products, services and sharing expertise. Its commitment to sustainable development, its high
ethical standards in business dealings and its on-going efforts in community welfare programs
have won it acclaim as a responsible corporate citizen. It was the first cement company to figure
in the list of Consumer Super Brands of India.

 VALUES
VISION/AIM
TO BE ONE OF THE MOST RESPECTED COMPANIES IN INDIA DELIVERING
SUPERIOR AND SUSTAINABLE VALUE TO ALL OUR CUSTOMER, BUSINESS
PARTNERS, SHAREHOLDERS, EMPLOYEES AND HOST COMMUNITIES.
OBJECTIVES

TO UPLOAD AND PROMOTE THE PRINCIPLESOF INCLUSIVE GROWTH

AND EQUITABLE DEVELOPMENT.
TO DEVELOP COMMUNITY DEVELOPMENT PLANS BASED ON
NEEDSAND PRIORITIES OF HOST COMMUNITIES AND MEASURE THE
EFFECTIVENESS OF COMMUNITY DEVELOPMENT PROGRAMMES.
TO WORK ACTIVELY IN AREAS OF PREVENTIVE HEALTH AND
SANITATION, EDUCATION, SKILLS FOR EMPLOYABILITY, LIVLIHOODS
AND INCOME GENERATION, WASTE RESOURCES MANAGEMENT AND
WATER CONSERVATION FOR HOST COMMUNITIES FOR ENHANCING
HUMAN DEVELOPMENT INDEX.
TO COLLABORATE WITH LIKE MINDED BODIES LIKE GOVERNMENTS,
VOLUNTARY, ORGANISATIONS AND ACADEMIC INSTITUTES IN
PERSUIT OF OUR GOALS.
TO INTERACT REGULARLY WITH STAKEHOLDERS, REVIEW AND
PUBLICITY REPORT OUR CSR INITIATIVES

CSR POLICY
APPROVED BY B.O.D
ON MAY 3, 2013

 CORPORATE PROFILE

BOARD OF DIRECTORS

1. CHAIRMAN - Mr. N S Sekhsaria

2. DEPUTY CHAIRMAN Mr. BenardTerver
3. C.E.O & M.D Mr. Harish Badami
4. Mr. Benard Fontana
5. Mr. ShaileshHaribhakti
6. Mr. Aidan Lynam
7. Mr. Sushil Kumar Roongta
8. Mr. AshwinDani
9. Mr. Farrokh K Kavarana
10.Mr. Vijay Kumar Sharma
11.Mr. ArunkumarRamanlal Gandhi
12.Mrs. FalguniNayar

CORPORATE OFFICE - Mumbai (Maharashtra)

 CEMENT PLANTS
1
4
7
1
0
1
3
1
6

Bargarh (Odisha)
Damodhar (West Bengal)
Jamul (Chhattisgarh)

2
5
8

Lakheri (Rajasthan)

Madukkarai (TN)
11
1
Tikaria (UP)
4
1
Wadi II (Karnataka)
7

1.
2.
3.
4.

REGIONAL OFFICES

1.
2.
3.
4.

TRAINING CENTRES

Thondebhavi (Karnataka)
Wadi I (Karnataka)

Chaibasa (Jharkhand)
Gagal I (HP)
Kudithini (Karnataka)

Eastern Region (Kolkata)

Northern Region (New Delhi)
Western Region (Thane)
Southern Region (Bengaluru)

ACC ACL Leadership Academy, Thane

ACC Cement Technology Institute, Jamul
SumantMoolgaokar Technical Institute, Kymore
ACC School for Technical Skill Development, Wadi

3
6
9
1
2
1
5

Chanda (Maharashtra)
Gagal II (HP)
Kymore (MP)
Sindri (Jharkhand)
Vizag (AP)

 ENHANCING CUSTOMER VALUE

This company follows a Customer Charter that comprises a set of guiding principles to lead
us on the path to be a customer-centric organization. Three fundamental commitments
ensure that they remain focused on the customer in everything they do:

They are easy to do business with

They keep our promises
They create value

In keeping with its commitments, the customer charter puts forth three simple objectives for
them to follow:

Consistently meet highest product quality standards

Consistently serve, support and seek feedback from end-consumer
Consistently develop and upskill their channel partners and influences

The main customers they serve are end consumers- individual home builders, industrial,
infrastructure and commercial projects and those who use their cement as raw material. But they
also serve many others who in turn assist them in reaching and servicing their end consumerstheir vast network of channel and supply chain partners, masons, contractors, architects, and
engineers.
Foremost in the charter is the demand that they provide a safe and secure environment which
ensures zero harm to customers and the communities they deal with, beyond the boundaries of
their plants and establishments.
The customer-centric approach is designed to enrich the customer experience and enhance
customer value.

 A CUSTOMER CENTRIC APPROACH

In adopting a customer-centric approach they mean simply to demonstrate value in
everything they do for their customers. They endeavor to give their customers three
valuable offerings:

Superior products

Superior logistics

Superior Query &

Complaint Handling

They have strived to ensure that the customer- the most valued our stakeholders sees and
experiences value in everything they do to fulfill his or her needs at every stage, in every
transaction, in every interface.
Superior products
This translates into Quality Products and Quality Packaging that are designed to far exceed
minimum statutory standards or meet the specifications agreed with the customer. They assure
the customer the best in cement and ready mixed concrete
Superior Logistics
They promise to deliver on-time and in full. They continue to make steady progress with their
on-going logistics management plan to achieve best-in-class performance in terms of cost-toserve and time-to-serve, reducing lead distances and eliminating multiple handling through a
focus on safety, people, vehicles and processes. A logistics strategy blueprint tool is in place that
maps every plant on critical key performance indicators. GPS (Global Positioning Systems) and
RFID (Radio Frequency Identification Device) modules have been successfully deployed at
eleven and nine plants respectively which is helping improve overall turn-around time.

Superior Query & Complaint Handling

Customer relationship management systems
help them to manage interactions and
transactions with customers. A multi-nodal
system is now in place for complaint logging
and handling and targeted cycle closure. They
track the resolution of issues and complaints
through Loop closures for complaint through
the Customer Complaint System. In, addition
their frontline sales force now interacts
increasingly with end-consumers to
understand their expectations through the
unique 5Ps survey for feedback on product,
packaging, pricing, promotion and placement.

KEEP CALM LET THE CUSTOMER

SPEAK

 ENRICHING CUSTOMER EXPERIENCE

Their vision requires that they work to ensure that the customer perceives value in all that
they do to fulfill his needs in every interface with them. It is this that creates a special
customer experience which they strive to enhance. Again, their customer denotes every
partner in their supply chain right up to the end user.
Every frontline sales personnel spends a day at a retail counter to observe in-store consumer
behavior from the moment a customer enters till the actual purchase is concluded. This helps
them to understand the buying process, what a consumer is looking for and the drivers that leads
to final purchase.
They conduct regular Consumer Camps and family level meets for the customers in addition to
distributing product literature and informative pamphlets on good construction practices. In
2014, their sales offices interacted with 3000 individuals in family meets while 30,000 attended
their consumer camps.
Their Customer Service teams also connect with construction engineers and contractors through
a mix of engagements such as technical training programs, seminars and plant visits. In 2014,
they conducted such training for 8000 persons while 500 persons made visits to our cement
plants.

CHANNEL PARTNERS
ACCs vast network of dealers and retailers, their channel partners, plays a fundamental
role in reaching out to customers in making their cement available and providing
primary services to their customers. Channel partners play a vital role in the successful sale
of their products. They are central to the continued success of their brand equity. Through
their efforts and attentiveness, channel partners are responsible for contributing over
three-fourth of their business.

On their part, they endeavor to team up with channel partners who have the required mind-set
that makes them responsive to customers. Channel partners work in tandem with their sales
teams. They provide them with a range of our quality products and assure them of the marketing,
customer service and logistics support they need to succeed in serving the market and delivering
value to satisfied customers. They offer them opportunities for skill development and training in
product knowledge. They measure their responsiveness to them with tools like Easy Access. And
they gauge their satisfaction with them through regular structured surveys. Channel partners act
as there valuable ambassadors.

CEMENTING RELATIONSHIP
Going well beyond being a mere tagline, this means so much more to them. Cementing
relationships represents the core of their philosophy in the manner they engage with their
stakeholders beginning with the customer and all others in their supply chain their
channel and logistics partners, engineers, contractors, masons and other influencers.

They reach out to customers through promotion campaigns in print and electronic media as well
as through social media to create continuous visibility that makes a strong brand impact. They
track their brand equity regularly to get insights that help them assess how they are perceived and
identify areas of improvement.
There sales force and customer service personal regularly connect with customers to meet their
needs, thus creating enduring relationships. In addition, other employees are also encouraged to
spend a day with customers on a regular basis so that the whole organization is engaged around
what the customer needs and values in our products and service. As their network and products
reach out to touch the lives of millions of Indians, it is a privilege to receive the customers vote
of confidence that recognizes ACC as being one of the countrys most trusted brands.

EMBRACING TOMORROW
As the national economy follows a revival path amid countrywide housing, commercial and
infrastructure development, new growth prospects open up for cement and concrete. ACC
is taking necessary steps to make the organization future ready to enjoy these opportunities
as they unfold.

In the past few years they have been busy building the requisite capability and people skills in
the organization. A vital component of this journey has been the continuous pursuit of
improvements in the key functions of manufacturing, sales & marketing, logistics and
procurement.
On the sustainable development front, there is an ongoing thrust on pursuing their commitment
to reduce the overall carbon footprint of their operations through the five levers of
a)
b)
c)
d)
e)

Manufacturing blended cements that consume less clinker,

Pursuing continuous improvements in thermal and electrical energy efficiency,
Adopting waste heat recovery systems,
Improving the usage of alternative fuels and raw materials and
Adopting clean and green technologies.

They are equally committed to continue to engage and partner with local communities in their
neighborhood through the efforts in promoting basic community development initiatives and in
creating sustainable livelihood.

GETTING RECOGNIZED
In 2014, ACC was ranked as No. 1 in Indias Most Admired Companies in cement sector for
the second consecutive year in the Fortune Hay Group India survey. Another distinction was
receiving Gold Shield in the prestigious ICAI Awards for Excellence in Financial Reporting for
2013-2014. There were several awards in other categories each recognizing excellencein core
functional areas that went on to help them better serves their customers.
Of course there can be no greater reward or honor than earning the customers trust to give them
new business or repeat business. Be they also draw inspiration from any recognition they get
from professional bodies and associations. That serves as indicators that they are doing things
right. It kindles a competitive spirit which motivates them to pursue continuous improvements
and innovation in what they do.

 SUBSIDIARY COMPANIES
ACC Mineral Resources Limited
ACC's wholly owned subsidiary, The Cement Marketing Company of India Limited,
was renamed as ACC Mineral Resources Limited (AMRL) in May 2009 with an
objective of securing valuable mineral resources, such as coal for captive use. ACC
Mineral Resources Limited has already entered into Joint Venture arrangements for
prospecting, exploration and mining coal from the coal blocks in Madhya Pradesh
and West Bengal. The company is also exploring other opportunities for securing
additional coal and gypsum resources in India and abroad
The financial highlights of the ACC Mineral Resources Limited For the year ended
Dec 31, 2014 is as under:
PARTICULARS
Total Operating
Income
Other income
Total Income
LESS:- Operating
Expenditure
Profit before
interest,Depreciation,
Amortization Tax &
Exceptional Item
LESS:Depeciation&
Amortization
LESS:- Finance Cost
Profit before Tax and
Exceptional Item
Exceptional items
Profit before Tax

2014
AMOUNT
RS.
-

2013
AMOUN
T RS.
-

3,24,77,978
3,24,77,978
1,07,96,438

4,73,086

2,16,81,540

(4,73,086)

4,69,174

83,890

5,66,70,460
(3,54,58,094 (5,57,066)
)
(3,54,58,094 (5,57,066)
)

 The Financial highlights of ACC minerals Resources Limited (cont.)

PARTICULARS
LESS:- Provision for
Taxation (inci.
Liability for earlier
years)
LESS:- Deferred Tax
Liability/assets
ADD:- MAT credit
entitlement

2014
AMOUNT
RS.
-

2013
AMOUN
T RS.
1,000

(3,54,58,094 (5,56,066)
Net profit for the year
)
EPS:- Basic &
(26.06)
(1.12)
Diluted

Bulk Cement Corporation (India) Limited

Situated at Kalamboli, in Navi Mumbai (formerly New Bombay), this company caters to bulk
cement requirements of the city of Mumbai and its environs. It has two cement storage silos with
a capacity of 5,000 tons each. The plant receives cement in bulk from ACC plants at Wadi. The
plant has its own special purpose railway wagons and rakes and its own railway siding. The first
of its kind in India, BCCI is equipped with all the facilities required by increasingly sophisticated
construction sites in a bustling metropolis, including a laboratory, a fleet of specialized trucks
and site silos for the convenience of customers and is capable of offering loose cement in bulktanker vehicles as well as packed cement in bags of varying sizes from 1 tonne down to 25 kg
bags. BCCI is situated strategically on the outskirts of Mumbai, just off the new Mumbai-Pune
Expressway. It is a landmark structure spread over 30 acres of land.

The financial highlights of Bulk cement Corporation (India) Limited for the year ended Dec
31, 2014 is as under:

PARTICULARS
Revenue from operations
(net) and other income
Profit Before Tax
LESS:- Current Tax
LESS:-Deferred Tax
Profit after Tax
Balance brought forward
from previous year
Balance carried forward
to Balance Sheet

2014

2013

RS.
Lakh

RS.
Lakh

2,331.36

1,930.83

629.31
212.04
(15.82)
432.99

342.14
81.86
(10.66)
270.94

1,551.16

1,280.22

1,984.15

1,551.16

Lucky Minmat Limited

ACC acquired 100 per cent of the equity of Lucky Minmat Private Limited. This
company holds limestone mines in the Sikar district of Rajasthan, and helps
supplement limestone supply to the Lakheri Plant.

The financial highlights of the LUCKY Minmat Limited (LML) for the year ended Dec 31,
2014 is as under:
PARTICULARS
Revenue from
operations (net) and
Other Income
Profit / (Loss) Before
Tax
Provision for Taxation
Profit / (Loss) after Tax

2014 (RS)

2013 (RS)

12,99,452

11,65,884

(78,55,388)

(41,93,499)

(78,55,388)

(41,93,499)

Balance brought
forward from previous
year
Balance carried
forward to Balance
Sheet

(1,90,30,904 (1,48,37,405
)
)
(2,68,86,292 (1,90,30,904
)
)

National Limestone Company Private Limited

National Limestone Company Private Limited is a wholly owned subsidiary. The
company is engaged in the business of mining and sale of limestone. It holds mining
leases for limestone in the state of Rajasthan.
The financial highlights of the National Limestone Company Private Limited for the year
ended Dec 31, 2014 is as under:
PARTICULARS
Revenue from operations
(net) and Other Income
Profit / (Loss) Before Tax
Provision for Taxation
Profit / (Loss) after Tax
Balance brought forward
from previous year
Balance carried forward to
Balance Sheet

2014 in
(RS)
_

2013 in
(RS)
137

(17,57,878
)
(17,57,878
(22,91,305)
)
(36,37,317
(53,95,195)
)
(53,95,195
(76,89,500)
)
(22,94,305)

 Singhania Minerals Private Limited

The financial highlights of Singhania Minerals Private Limited for the year ended Dec
31, 2014 is as under:

PARTICULARS
Revenue from operations
(net) and Other Income
Profit / (Loss) Before Tax
Provision for Taxation
Profit / (Loss) After Tax
Balance brought forward
from previous year
Balance carried forward to
Balance Sheet

2014 in
(RS)
_

2013 in
(RS)
_

(2,07,767)
(2,07,767)

(2,63,328)
(2,63,328)

(5,53,864)

(2,90,536)

(7,61,631)

(5,53,864)

 Financial highlights of ACC LTD.

(IN CRORE)

Particulars
INCOME STATEMENT
Net Sales
Operating EBITDA
Profit before Tax
Profit after Tax
BALANCE SHEET
Net Worth
Borrowings
Net Fixed Assets
Cash and cash equivalents
Current Assets
Current Liabilities
Capital Employed
SIGNIFICANT RATIOS
Operating EBITDA margin
Average return on Capital
Employed
Return on Net Worth
Current Ratio
Debts Equity Ratio
Price Earning Ratio
Net worth per share (Rs)
Dividend per share (Rs)
Basic Earnings per share (Rs)
Cash Earnings per share (Rs)
CASH FLOWS

2014

2013

CHANG
E

CHANGE
(%)

11,481
1,507
1,135
1,168

10889
1629
1227
1,096

592
(122)
(92)
72

5.4%
(7.4)%
(7.4)%
6.5%

8,236
NIL
7,513
1,686
3,485
3,900
8,771

7825
35
6324
2621
3476
3726
8367

411
(35)
1,189
(935)
9
174
404

5.25%
(100)%
18.8%
(35.67)%
0.25%
4.66%
4.82%

13%

15%

11%
14%
0.89
NIL
22.56
439
34
62.23
91.93

13%
14%
0.93
0.004
18.91
416.00
30.00
58.36
88.93

4
23
4
4
3

19.3%
5.52%
13.33%
6.63%
3.37%

Operating activities
Investing activities
Financing activities

1332
(1437)
(837)

1,056
(858)
(834)

276
(579)
(3)

26.13%
67.48%
0.35%

VALUE ADDED STATEMENT

(IN CRORE)

PARTICULARS

2014

2013

CHANG
E

CHANG
E%

Capital employed
Avg capital employed

8,771
8,569

8,367
8,215

404
354

4.82%
4.3%

Value Added
Net operating profit afetr taxes
LESS:- Cost of capital
Value Added

1,168
1,105
63

1,096
1,084
12

72
21
51

6.56%
1.93%
425%

14
13
1

13.34
13.2
0.14

26,287
NIL
1,686
24,601

20,806
35
2,621
18,220

5,481
(35)
(935)
6,381

26.34%
(100)%
(35.67)%
35.02%

2.18

28.44%

Return on capital employed (%)

LESS:- Weighted Average Cost of capital (%)
Value Added / Capital employed (%)
Enterprise Value
Market capitalisation (as at dec,31st)
ADD:- Debts
LESS:- Cash and cash equivalents
Value Added (Enterprise Value)
Value Added / Yr. End Capital Employed
(Times)

 BALANCE SHEET as at December 31, 2014

PARTICULARS

NOTE
NO.

2014

2013

CHANGE

CHANG
E (%)

EQUITY AND LIABILITIES

Shareholders funds
Share capital
Reserves and surplus

3
4

187.95
8,047.66
8,235.61

187.95
7,636.89
7,824.84

0
410.77
410.77

0
5.3
5.24

Non-current liabilities
Deferred tax liabilities (Net)
Long-term provisions

6
7

535.57
115.94
651.51

507.27
106.14
613.41

28.3
9.8
38.1

5.57
9.23
6.21

Current liabilities
Trade payables
Other current liabilities
Short-term provisions

8
9
10

750.23
2,096.71
937.27
3,784.21
12,671.33

639.20
1,952.44
1,063.70
3,655.34
12,093.59

111.03
144.27
(126.43)
128.87
577.74

17.37
7.38
(11.88)
3.52
4.77

11
11

5,597.75
0.64
1,914.63
290.9
855.56
360.71
9,020.19

5,503.13
0.83
819.61
176.81
866.83
308.24
7,675.45

94.62
(0.19)
1095.02
114.09
(11.27)
52.47
1344.74

1.71
(22.89)
133.6
64.52
(1.3)
17.02
17.52

1,282.08
1,255.59
410.71
304.3

2,017.21
1,121.47
397.22
503.38

(735.13)
134.12
13.49
(199.08)

(36.44)
11.95
3.39
(39.54)

TOTAL
ASSETS
Non-current assets
Fixed Assets:
Tangible assets
Intangible assets
Capital work-in-progress
Non-current investments
Long-term loans and advances
Other non-current assets

12
13
14

Current assets
Current investments
Inventories
Trade receivables
Cash and bank balances

15
16
17
18

Short-term loans and advances

Others current assets
TOTAL

19
20

383.92
14.54
3,651.14
12,671.33

359.39
19.47
4,418.14
12,093.59

24.53
(4.93)
(767)
577.74

6.8
(25.32)
(17.3)
4.77

Comment on Comparative balance sheet of the year 2014 with 2013

1. EQUITY & LIABILITIES.
Equity and liabilities are raised by (577.74) i.e. (4.7%) from RS.12, 093.59Cr. to RS.12,
671.33Cr. due to the following reasons:

Share-holders funds are raised from 7824.84 to 8235.61 i.e. by 410.77 (5.3%) due
to increase in reserves & surplus by 410.77 and share capital being the same.
Non-current liabilities and current liabilities are raised from 613.41 to 651.51 i.e.
by 38.1 (6.21%) and 12, 093.59 to 12, 671.33 i.e. by 577.74 (4.7%) respectively.

2. ASSETS.
Assets comprising Non-Current Assets and Current Assets are increased by (4.77 %)
which is 577.74 i.e. it raised from 12, 093.59 to 12, 671.33 due to the following reasons

Non-current Assets are raised from 7,675.45 to 9,020.19 i.e. by 1,344.74 which is
(17.5%). Fixed assets comprising Tangible Assets have increased from 5,503.13
to 5,597.55 i.e. by 94.62 i.e. (1.7%)
Although the Intangible Assets has decreased by 22.8% the Capital in WIP has
rose from 819.61 to 1914.63 i.e. by 1,095.62 i.e. by 133.8% which gives a
positive difference in Fixed Assets 2014 and Fixed Assets 2013.
Long-term loans and advances of 2014 are less than that of long-term loans and
advances of 2013. But the Non-current investments and other non-current assets
increased by 114.09 i.e. by 64.5 and 52.47 i.e. by 17.02 respectively.
When we observe the Current-assets comprising Current investments, Inventories,
Trade receivables, Cash and Bank balances, Short term Loans, and Advances and
other current assets, we can conclude that it has decreased by 17.3% i.e. from
4,418.14 to 3,651.14.
But when we combine the Current and Non-Current assets we get a positive
difference of 557.74 which is (4.77%)
CONCLUSION

 Non-current Assets > Non-current liabilities

Current Liabilities > Current Assets
The co. has to look after the current assets of 2014 which is decreased by RS.
76.7 Cr. than that of Current Assets of 2013.
Particulars
INCOME
Revenue from operations (gross)
LESS:- Excise Duty
Revenue from operations (Net)
Other Income
Total Revenue
EXPENSES
Cost of material consumed
Purchase of traded goods
Changes in inventories of finished goods,
work-in-progress and stock-in-trade
Employee benefits expense
Power and fuel
Freight and Forwarding expense
Finance costs
Depreciation and amortization expense
Other expense
Self Consumption of cement (net of Excise
duty)
Total Expenses
Profit before tax
Tax expenses
Current tax
Tax adjustments for earlier years
Deferred tax

Note.No

21
22

2014 (IN RS Crore)

13,108.18
1,369.97
11,738.21
268.28
12,006.49

23
24
25
26
27
29
11
28

2013 (IN RS Cro

12,471
1,322
11,149
285
11,435

1,788.31
194.33

1,608
16

(11.28)
746.59
2,441.82
2,598.33
82.76
557.58
5,490.51
10,888.95

6
661
2,375
2,308
113
573
2,405
10,215

(17.66)
10,871.29

(7.
10,208

1,135.20

1,226

(262.24)
309.23
(13.9)

33.09
Profit for the year (After tax)
1,168.29
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED DEC 31, 2014

(363.
216
15
(131
1,095

Comment on the Comparative profit & loss of the year 2014 with 2013
1. INCOME(Revenue)

The Total revenue of ACC Ltd is increased by 4.94% i.e. RS. 571.21 Cr. due to increase
in net revenue from operations by (5.27%) i.e. 588.60 Cr.
2. EXPENSE
The Total expenses of ACC Ltd is increased by 662.97 i.e. by 6.49% which shows a
negative sign of the company as the cost of material has increased by (11.15%),
Employee benefit expense by (12.90)%, and also the freight and forwarding expenses by
(12.53%).
3. As the expenses increased profit before tax has decrease by (7.46%) and due to tax
adjustments for earlier years the profit after tax tends to increase by 6.61% as compared
to 2013.

CONCLUSION
Difference in Total revenue < Difference in Total Expenses
Profit before tax of 2014 < Profit before tax of 2013
Tax adjustments for earlier years (2014) > Tax adjustments for earlier years
(2013) due to which Profit after Tax (2014) > Profit after (2013)

 Cash Flow Statement for the year ended Dec 31, 2014
2014
(IN RS
Crore)

2013
(IN RS
Crore)

Chan
ge

Chan
ge
(%)

1,135.20

1,226.96

(91.76
)

(7.47)

557.58

573.95

(16.37
)

(2.85)

11.93

15.88

3.85

12.03

4.82

17.86

(13.04
)

(73.01
)

(41.45)

(59.47)

18.02

(30.3)

(9.86)
(216.97)

(6.59)
(219.61)

Finance Costs

82.76

113.55

(3.27)
(2.64)
(30.79
)

Provision for doubtful debts and

advances

15.88

7.62

8.26

4.6

0.67

3.93

13.72

18.48

(4.76)

(45.85)

(13.92)

9.05

23.22

1,525.36

1,698.50

(31.93
)
(14.17
)
(173.1
4)

49.62
1.2
(23.05
)
108.3
9
586.5
6
(25.76
)
229.3
8
(61.02
)
(10.19
)

(196.9)

(299.54)

102.6
4

(34.26
0)

(147.84)

(6.4)

(141.4

2210

Particulars

A . Cash flow from operating

activities
Net profit before taxation
Adjustments for :Depreciation and Amortization
Impairment Loss
Loss / (Profit) on sale / write off of
fixed assets (Net)
Provision for diminution in the value
of investment and investment written
off
Gain on sale of current invesments
(Net)
Dividend income
Interest income

Bad debts written off

Provision for slow and non moving
stores & spares parts
Provision no longer required written
back
Capital Spares Consumed
Operating profit before working
capital changes
Changes in working capital:
Adjustments for Decrease / (Increase)
in operating assets:
Decrease / (Increase) in Trade
receivable, loans & advances and
other assets
Decrease / (Increase) in Inventories

(100)
312.4
6

4)
Adjustments for increase / (Decrease)
in Operating liabilities:
Increase / (Decrease) in Trade
payable, Other liabilities and
Provisions
Cash generated from operations

386.46

113.07

1,567.08

1,505.63

Direct tax paid - (Net of Refunds)

(235.38)

(449.4)

Net cash flow from operating

activities

1,331.70

1,056.23

273.3
9

241.7
8

61.45
214.0
2
275.4
7

4.08
(47.62
)
26.08

 Cash Flow Statement for the year ended Dec 31, 2014 (contd.)
Particulars
B. Cash Flow from investing
activities
Loans to subsidiary companies
Payment received against loan given to
subsidiaries
Purchase of Fixed Assets (Including
Capital Work-in-progress and Capital
Advances)
Proceeds from sale of Fixed Assets
Proceeds from sale of current
invesments (Net)
Purchase of Investments in subsidiary
companies
Investment in Bank deposits (having
original maturity for more than 3
months)
Dividend Received
Interest Received
Net cash used in investing
activities

2013 (IN
2014 (IN
RS
Crore)
RS Crore)

Chan
ge

Chan
ge %

205.6

-75.76

-24.79

109.73

-1,527.00

-947.77

2.58

7.29

-50.97
109.7
3
579.2
3
-4.71

41.45

59.47

-18.02

-30.3

-118.91

118.9
1

-7.87

-119.3

111.4
3

-93.4

9.86
129.23

6.59
160.77

-1,436.69

-857.74

3.27
-31.54
578.9
5

-61.11
-64.6

49.62
-19.61
67.49

 Cash Flow Statement for the year ended Dec 31, 2014 (contd.)

Particulars

C. Cash flow from financing activities

Finance Costs
Repayment of Long term borrowings
Dividend paid
Dividend Distribution Tax paid
Net Cash used in financing activities

2014 IN
RS.
(Crore)

2013 IN
RS.
(Crore)

Chan
ge

Chan
ge %

-49.07
-35.03
-644.51
-108.48
-837.09

-50.52
-128.03
-560.2
-95.72
-834.47

1.45
93
-84.31
-12.76
-2.62

-2.87
-72.63
15.04
13.33
0.31

Net increase / (decrease) in cash and

cash equivalents

-942.08

-635.98

-306.1

48.13

Cash and cash equivalents at the beginning

of the year

2,499.07

3,135.05

Cash and cash equivalents at the end of the

year

1,556.99

2,499.07

0.12

0.12

37.64

55.68

-32.39

105.28

288.02

31.87

38.04

174.91

381.86

350

1,062.00

-18.04
182.7
4
-6.17
206.9
5
-712

932.08

955.21

-23.21

-2.42

100

100

1,556.99

2,499.07

942.0
8

Components of cash and cash equivalents:

Cash on hand
Balance with banks
On current accounts
On deposit accounts
Earmarked for specific purpose
Cash and cash equivalents
ADD : Investments in Mutual Funds
ADD : Investments in Certificate of
Deposits
ADD : Deposit with HDFC Limited
Cash and cash equivalents in cash flow
statement

635.9
8
942.0
8

-20.28
-37.69

-63.44
-16.21
-54.19
-67.04

-37.69

 FINANCIAL ANALYSIS OF ACC LIMITED

The following table sets fourth the breakup of the companys expenses as part of the
Revenue from operations (Net)
Figures in RS. Crore

11,738.21
268.28
1,788.31
194.33

% of
Revenue
from
operations
100.00%
2.29%
15.23%
1.66%

11,149.61
285.67
1,608.80
161.1

% of
Revenue
from
operations
100%
2.56%
14.43%
1.44%

(11.28)

(0.10%)

6.53

0.06%

746.59
2,441.82
2,598.33
82.76
557.58
2,472.85
1,135.20

6.36%
20.80%
22.14%
0.71%
4.75%
21.07%
9.67%

661.27
2,375.97
2,308.87
113.55
573.95
2,398.28
1,226.96

5.93%
21.31%
20.71%
1.02%
5.15%
21.15%
11.00%

2014
Revenue from operations (net)
Other income
Cost of material consumed
Purchase of traded goods
Changes in inventories of finished
goods, work-in-progress and Stockin-trade
Employee benefits expense
Power and fuel
Freight and Forwarding expense
Finance costs
Depreciation and amortization
other expenses
Profit before tax

2013

1. REVENUE FROM OPERATIONS (NET):

2014

2013

Change

Change%

Cement and Clinker

Ready mix Concrete
Sale of services
Other operating revenue
Revenue from operations (net)

10,720.28
740.8
19.97
257.16
11,738.21

10,233.17
639.63
16.28
260.53
11,149.61

487.11
101.17
3.69
(3.37)
588.6

4.76%
15.82%
22.67%
(1.29%)
5.28%

Revenue from operations has increased by 5% due to following reasons:

Net sale of cement and clinker has registered a growth of 4.76 %

Sale volume of Ready Mixed Concrete has increased by 15.82%

2. OTHER INCOME:
2014
Other Income

268.28

2013
285.67

Change
(17.39)

Change%
(6.09%)

Other income consists of interest on bank deposits, Interest on Income tax, Gain on sale
of current investments and Dividend from long term investments.

During the year, the company has utilized the surplus cash for Jamul and Sindri Projects
which has resulted into lower interest income and gain on sale of investment by Rs 17.39
Crore in current year over previous year.

3. COST OF MATERIAL CONSUMED:

2014
Cost of material consumed

1,788.31

2013
1,608.80

Change
179.51

Change%
11.16%

Cost of material consumed has increased due to following reasons:

Cement production during current year recorded an increase of 1.6% over previous year.
Ready Mixed Concrete production has increased by 23% i.e. from 15.96 Lakh cubic
meters to 19.65 Lakh cubic meters.
Fly ash prices increased by 11%.

4. PURCHASE OF TRADED GOODS:

2014
Cement
Ready mix concrete
TOTAL

2013

121.91
72.42
194.33

68.6
92.5
161.1

Change
53.31
(20.08)
33.23

Change%
77.71%
(21.71%)
20.63%

Although the purchase of Ready mix concrete has decreased by 21.71%. purchase of cement has
increased by 77.71% due to the following reasons:

Purchase of cement from Ambuja Cements Limited has increased by Rs 65 Crore. While
the company has discontinued the trading of cement from Shiva Cement Limited which
has resulted into decrease in cement purchase by Rs 20 Crore as compared to previous
year.

5.

POWER AND FUEL:

2014

Power and fuel

2,441.82

2013
2,375.97

Change
65.85

Change%
2.77%

Power and fuel cost has increased marginally due to following reasons:

Coal cost for kiln increased by 3.6% in 2014 over 2013.

Coal cost for captive power plants increased by 10%

6. EMPLOYEE BENEFITS EXPENSE:

2014
Employee Benefits expense

746.59

2013
661.27

Employee benefits expense has increased due to following reason:

Change
85.32

Change%
12.90%

Retirement benefits provision has increased due to decrease in discounting rate from
8.85% to 7.90%. Total impact of increase in employee benefit provision / expenses are
approx Rs 28 Crore as compared to previous year.

7. FREIGHT AND FORWARDING EXPENSE:

2014
On inter unit Clinker transfer
On finished products - Cement
Ready mixed Concrete
TOTAL

393.81
2,136.50
68.02
2,598.33

2013
277.52
1,973.59
57.76
2,308.87

Change
116.29
162.91
10.26
289.46

Change%
41.90%
8.25%
17.76%
12.54%

Freight and Forwarding expenses has increased due to following reasons:

Hike in rail & road freight.

Freight on cement has gone up due to increase in cement sale volume.
Freight on clinker transfer has gone up on account of long lead time movement of clinker.

8. OTHER EXPENSES:
2014
Consumption of packing materials
Repairs
Royalty on Minerals
Discount on sales
Rates and Taxes
Advertisement
Excise Duties
Rent
Insuarance
Consumption of Stores and spares
Technology and Know-how fees
Miscellaneous Expenses
TOTAL

483.67
171.54
129.82
93.27
141.13
106.82
4.37
33.83
24.62
361.99
112.91
826.54
2,490.51

2013
434.15
161.44
118.28
88.28
120.13
116.07
6.47
30.51
25.29
375.49
107.66
821.97
2,405.74

Other expenses has increased on account of following reasons:

Change
49.52
10.1
11.54
4.99
21
(9.25)
(2.1)
3.32
(0.67)
(13.5)
5.25
4.57
84.77

Change%
11.41%
6.26%
9.76%
5.65%
17.48%
(7.97%)
(32.46)%
10.88%
(2.65)%
(3.60)%
4.88%
0.56%
3.52%

Consumption of packing material cost has increased mainly due to increase in

average price of bags by 6%.
Due to temporary suspension of limestone mining operation royalty rate on limestone
increased from Rs 63 to Rs 80
Rates and Taxes have increased mainly due to additional goods tax rate in Himachal
Pradesh which has increased from Rs 130/ton to Rs 150/ton. Entry tax on cement has
also increased due to local body tax in the state of Maharashtra.

9. DEPRECIATION AND AMORTIZATION EXPENSE:

2014
Depreciation and Amortization
expense

557.58

2013
573.95

Change

Change%

(16.37)

(2.82)%

Depreciation expense has decreased due to following reason:

Reduction in depreciation on account of retirement of assets and useful life of

some assets are fully depreciated in the previous year.

10. FINANCE COSTS:

2014
Finance costs
Interest on Income tax
TOTAL

48.7
34.06
82.76

2013
51.67
61.88
113.55

Change
(2.97)
(27.82)
(30.79)

Change%
(5.75)%
(44.96)%
(27.12)%

Finance costs comprise interest on debentures, interest on income tax and other interest.
Finance costs has decreased due to following reasons:

During the year, the company has redeemed debentures of Rs 32 Crore. Interest
on debentures has decreased by Rs 3.92 Crore as compared to the previous year.
Interest on Income tax has decreased by Rs 27.82 Crore.

11. FIXED ASSETS

2014
Tangible assets
Intangible assets
Capital Work in progress
TOTAL

5,597.75
0.64
1,914.63
7,513.02

2013

Change

5,503.13
0.83
819.61
6,323.57

94.62
(0.19)
1,095.02
1,189.45

Change%
1.72%
(22.89)%
133.60%
18.81%

Capitalization of Waste Heat Recovery System (WHRS) at Gagal, Coal handling system at Wadi
and purchase of mining and non-mining freehold land for projects, resulted in marginal increase
in tangible assets.
Capital Work-in-Progress has gone up mainly on account of capital expenditure incurred for
Jamul and Sindri projects.

12. INVESTMENTS:

2014
Non-Current investments
Current invesments
TOTAL

290.9
1,282.08
1,572.98

2013
176.81
2,017.21
2,194.02

Change
114.09
(735.13)
(621.4)

Change%
64.52%
(36.44)%
(28.31)%

Non-current investments in current year has increased by 64.52% over precious year .
Current investment has decreased due to surplus fund used for Jamul and Sindri projects.

13. LOANS AND ADVANCES:

2014
Long- terms loans and advances
Short-term loans and advances
TOTAL

855.56
383.92
1,239.48

2013
866.83
359.39
1,226.22

Change
(11.27)
24.53
13.26

Change%
(1)%
7%
1%

Long-term loans and advances decreased mainly due to decrease in Capital

advance for Jamul and Sindri projects which is partly offset by increase in
Advance of income tax (Net)
Short term loans and advance has increased due to following reasons:
Advances for supply of Raw material has gone up by Rs 30 Crore.
Increase in balance with statutory / government authorities by Rs 25 Crore.

14. INVENTORIES:
2014
Raw materials
Work-in-progress
Finished Goods
Stock-in-trade
Stores & Spares Parts
Packing Materials
Fuels
TOTAL

139.07
240.32
153.75
0.37
262.53
20.02
439.53
1,225.59

2013
132.9
252.85
129.82
0.49
274.64
21.49
309.28
1,121.47

Change

Change%

6.17
(12.53)
23.93
(0.12)
(12.11)
(1.47)
130.25
134.12

5%
(5)%
18%
(24)%
(4)%
(7)%
42%
12%

Increase in inventories of the current year is recorded as 12% over the previous year.
Fuel inventory has increased mainly due to stoppage of clinkerisation activities which was
due to temporary suspension of limestone mining operation.

15. TRADE RECEIVABLES:

2014
Trade receivables- Cement
Trade receivables - Ready Mixed
Concrete
TOTAL

2013

Change

Change%

244.77

269.53

(24.76)

(9)%

165.94
410.71

127.69
397.22

32.25
13.49

30%
3%

Trade receivable for cement has decreased due to better realization. The average
collection days outstanding for cement sales as on December 31, 2014 is 5 as
compared to 6 as on December 31, 2013.
Increase in concrete business trade receivable in 2014 is mainly due to increase in
sales.

The average collection days outstanding for concrete business as on December 31,
2014 is 59 as compared to 62 as on December 31, 2013.

16. OTHER ASSETS:

2014
Other non-current assets
Other current assets
TOTAL

2013

360.71
14.54
375.25

308.24
19.47
327.71

Change

Change%

52.47
(4.93)
47.54

17%
(25)%
15%

During the current year , the other non-current assets has increased by 17 % due to
accrual of incentive receivables from government under various incentives schemes.
Other current assets have decreased by 25% due to decrease in interest accrued on
investments.

17. OTHER CURRENT LIABILITIES;

2014
Current maturities of Long-term
borrowings
Interest accrued but not due on
borrowings
Unpaid dividend & Deposit
Statutory dues
Advance from customers
Security deposits and retention
money
Liability for capital expenditure
Other payables
TOTAL

2013

Change

Change%

35.03

(35.03)

(100)%

31.89
324.27
131.94

0.64
38.06
314.33
144.85

(0.64)
(6.17)
9.94
(12.91)

(100)%
(16)%
3%
(9)%

624.48
131.09
853.04
2,096.71

514.35
70.06
835.12
1,952.44

110.13
61.03
17.92
144.27

21%
87%
8%
7%

During the current year, the company has repaid the borrowing of Rs 35.03 Crore.
Statutory dues & Security deposits are increased by 3% & 21% respectively
There is no significant change in other payables
Liability for capital expenditure has increased due to Jamul and Sindri Projects.

18. PROVISIONS:

Long-term provisions
Short-term provisions
TOTAL

2014

2013

115.94
937.27
1053.21

106.14
1,063.70
1,169.84

Change

Change%

9.5
(126.43)
(116.63)

9%
(12)%
(10)%

Long-term provisions have gone up by 9% due to increase in provision for employee

benefits. The increase is on account of change in discounting rate.
Short-term provisions has decreased by 12% due to following reasons:
Increase in provision for Leave encashment by Rs 19 Crore mainly due to decrease in
discounting rate considered for valuation.

19. TRADE PAYABLES:

2014
Trade payables

750.23

2013
639.2

Change
111.03

Change%
17.37%

Increase in trade payable is in line with increase in business activities. Trade

payable of concrete business has increased by Rs 34 Crore.
20. CASH FLOW:
2014
Net cash flow from operating
activities

1,331.70

2013
1,056.23

Change
275.47

Change%
26.08%

The net cash from operating activities is increased as compared to previous year due to
following reasons:

The cash operating profit before working capital changes has decreased by Rs 173 Crore.
Reduction in working capital by Rs 42 Crore, as compared to an increase by Rs 193
Crore in the previous year.
Cash outflow from direct tax paid is Rs 235 Crore, as compared to Rs 449 Crore in the
previous year
2014

Net cash used for investing

activities

(1,436.69)

2013
(857.74)

Change
(578.95)

Change%
67.50%

Cash outflow from investment activities has increased mainly on account of purchase of
fixed assets for Jamul and Sindri projects.

Net cash used for financing

activities

2014

2013

(837.09)

(834.47)

Change
(2.62)

Change%
0.31%

Payment of dividend and dividend tax increased by Rs 97 Crore as compared to previous

year, increase is offset by lower repayment of borrowings by Rs 93 Crore as compared to
previous year.

 BALANCE SHEET RATIOS

1. Current Ratio: It is the ratio of Current Assets to Current liabilities.

It is also known as cash asset ratio and cash ratio.
Formula: Current ratio = Current Assets / Current liabilities.
The standard current ratio is 2:1.
Current Ratio speaks about the short term solvency position of the company.
The ratio is mainly used to give an idea of the company's ability to pay back its shortterm liabilities (debt and payables) with its short-term assets (cash, inventory,
receivables). The higher the current ratio, the more capable the company is of paying its
obligations. A ratio under 1 suggests that the company would be unable to pay off its
obligations if they came due at that point. While this shows the company is not in good
financial health,
Current Ratio of the ACC Ltd can be calculated as follows:
Current Ratio (2014) = Rs 3,651.14 (in crore) / Rs 3,784.21 (in crore)
= 0.96
Current Ratio (2013) = Rs 4,418.14 (in crore) / Rs 3,655.34 (in crore)
= 1.20
When we compare the current ratio (2014) with the current ratio (2013) we can say that
current ratio (2014) < current ratio (2013).
This indicates that the short- term solvency position of ACC Ltd has fallen down.
As in 2013, Current assets > current liabilities, while in 2014, Current assets < Current
liabilities. Where it shows that in 2014, the company would be unable to pay off its
obligations if they come due at such point.

This ratio is similar to the acid-test ratio except that the acid-test ratio does not include
inventory and prepaids as assets that can be liquidated. The components of current ratio
(current assets and current liabilities) can be used to derive working capital (difference
between current assets and current liabilities). Working capital is frequently used to
derive the working capital ratio, which is working capital as a ratio of sales.
2.

Quick Ratio: It is the ratio of Quick assets to Quick Liabilities.

It is also known as Liquid Ratio or Acid Test Ratio or Quick Assets Ratio.
Formula: Quick ratio = Quick Assets / Quick Liabilities.
Where Quick Assets excludes inventories and prepaid expenses.
The quick ratio is more conservative than the current ratio because it excludes
inventories from current assets. The ratio derives its name presumably from the fact
that assets such as cash and marketable securities are quick sources of cash.
Inventories generally take time to be converted into cash, and if they have to be sold
quickly, the company may have to accept a lower price than book value of these
inventories. As a result, they are justifiably excluded from assets that are ready
sources of immediate cash.
Whether accounts receivable is a source of ready cash is debatable, however, and
depends on the credit terms that the company extends to its customers. A firm that
gives its customers only 30 days to pay will obviously be in a better liquidity position
than one that gives them 90 days. But the liquidity position also depends on the
credit terms the company has negotiated from its suppliers. For example, if a firm
gives its customers 90 days to pay, but has 120 days to pay its suppliers, its liquidity
position may be reasonable.
The other issue with including accounts receivable as a source of quick cash is that
unlike cash and marketable securities which can typically be converted into cash at
the full value shown on the balance sheet the total accounts receivable amount
actually received may be slightly below book value because of discounts for early
payment and credit losses.

The Standard Ratio is 1:1.

Quick Ratio speaks about the liquidity position of the company.
Quick ratio of ACC Ltd can be calculated as follows:

Quick Ratio (2014) = Rs 3,650.77 (in crore) / Rs 3,784.21 (in crore)

= 0.96
Quick Ratio (2013) = Rs 4,417.65 (in crore) / Rs 3,655.34 (in crore)
= 1.20
When we compare the Quick ratio (2014) with the Quick ratio (2013) we can say that
Quick Ratio (2014) < Quick Ratio (2013).
This indicates that the liquidity position of ACC Ltd has fallen down.
3. Proprietary Ratio : It is the ratio of proprietor fund to total assets of the company
The proprietary ratio is also known as the equity ratio or the net
worth to total assets ratio.
Formula: Proprietary Ratio = Proprietors fund / Total assets * 100
Proprietary Ratio speaks about the proportion of total assets financed by proprietor.
It provides a rough estimate of the amount of capitalization currently used to support a
business. If the ratio is high, this indicates that a company has a sufficient amount of
equity to support the functions of the business, and probably has room in its financial
structure to take on additional debt, if necessary. Conversely, a low ratio indicates that a
business may be making use of too much debt or trade payables, rather than equity, to
support operations (which may place the company at risk of bankruptcy).

Proprietary Ratio of ACC Ltd can be calculated as follows:

Proprietary Ratio (2014) = Rs 8,235.61 (in crore) / Rs 12,671.33 (in crore) * 100
= 64.99%
Proprietary Ratio (2013) = Rs 7,824.84 (in crore) / Rs 12,093.59 (in crore) * 100
= 64.70%
When we compare the Proprietary Ratio (2014) with the Proprietary Ratio (2013) we can
conclude that there is no significant increase/decrease in the proportion of total assets
financed by proprietor.
A slight change of 0.29% is observed in the Proprietary ratio (2014) as compared to
Proprietary ratio (2013).
While observing the above proprietary ratio we can say that the company is safe from
bankruptcy and the company is not using too much of debts and trade payables.

This ratio is not necessarily a good indicator of long-term solvency, since it does not
make use of any information on the income statement, which would indicate profitability
or cash flows.

4. Capital bearing Ratio: It is a ratio of funds bearing fixed rate of interest and dividend
to funds not bearing fixed rate of interest and dividend
Formula: Capital bearing Ratio = Funds bearing fixed rate of interest and dividend /
funds not bearing fixed rate of interest and dividend.
It speaks about the proportion of borrowed funds and preference share holders funds to
equity shareholders funds
Capital bearing Ratio of ACC Ltd can only be calculated for the year 2013 because there
are no borrowings done in the year 2014
Capital bearing Ratio (2013) = Rs 35 (in crore) / Rs 7,824.84 (in crore)
= 0.004 (Low Graded)
As in the year 2014 the debts of previous year are paid, thus the borrowings are nil.
Hence the Capital bearing Ratio (2014) is nil.
Finally, we can consul that the proportion of borrowed funds and preference share holders
funds to equity shareholders funds of 2014 is less than the proportion of borrowed funds
and preference share holders funds to equity shareholders funds of 2013.
Thus, capital bearing Ratio (2014) < capital bearing Ratio (2013).
Capital gearing ratio is the measure of capital structure analysis and financial strength of
the company and is of great importance for actual and potential investors.
Borrowing is a cheap source of funds for many companies but a highly geared company
is considered a risky investment by the potential investors because such a company has to
pay more interest on loans and dividend on preferred stock and, therefore, may have to
face problems in maintaining a good level of dividend for common stockholders during
the period of low profits.
Banks and other financial institutions reluctant to give loans to companies that are
already highly geared

5. Debt-equity Ratio: It is the ratio of debt to equity

Also known as the Personal Debt/Equity Ratio, this ratio can be applied to personal
financial statements as well as corporate ones.
This ratio is the measure of a company's financial leverage calculated by dividing its
total liabilities by stockholders' equity. It indicates what proportion of equity and debt
the company is using to finance its assets.
A high debt/equity ratio generally means that a company has been aggressive in
financing its growth with debt. This can result in volatile earnings as a result of the
additional interest expense.
If a lot of debt is used to finance increased operations (high debt to equity), the
company could potentially generate more earnings than it would have without this
outside financing. If this were to increase earnings by a greater amount than the debt
cost (interest), then the shareholders benefit as more earnings are being spread
among the same amount of shareholders. However, the cost of this debt financing
may outweigh the return that the company generates on the debt through investment
and business activities and become too much for the company to handle. This can
lead to bankruptcy, which would leave shareholders with nothing.

Formula: Debt-equity ratio = Debt / Equity

This ratio speaks about the proportion of Debt and proportion of Equity. It may be higher
or lower. The standard Ratio is 2:1.
Debt-Equity Ratio of ACC Ltd can be calculated as follows:

Debt-Equity Ratio (2013) = Rs 35 (in crore) / Rs 7,824.84 (in crore)

= 0.004
As in the year 2014 the debts of previous year are paid, thus the borrowings are nil.
Hence the Debt-Equity Ratio (2014) is nil.
Finally, we can consul that the proportion of Debt to Equity (2014) is less than the
proportion of Debt to Equity (2013).
Thus, Debt-Equity Ratio (2014) < Debt-Equity ratio (2013)

6. Stock to Working capital Ratio : It is the ratio of closing stock to working capital.

Formula: Stock to Working capital Ratio = Closing stock / Working capital * 100
This ratio speaks about the amount of Working Capital which is block in inventories
(stock)
This ratio is an important indicator of a companys operation efficiency. A low value of 1
or less of inventory to working capital means that a company has high liquidity
of current asset. While it may also mean insufficient inventories. A high value inventory
to working capital ratio means that a company is carrying too much inventory in stock. It
is not favorable for management because excessive inventories can place a heavy burden
on the cash resources of a company. A key issue for a company to improve its operation
efficiency is to identify the optimum inventory levels and thus minimize the cost tied up
in inventories.

Stock to working capital ratio of ACC Ltd can be calculated as follows:

Stock to working capital ratio (2014) = Rs 394.44 (in crore) / Rs (133.07) (in crore) *
100
= (296.41) %
Stock to working capital ratio (2013) = Rs 383.16 (in crore) / Rs 762.83 (in crore) *
100
= 50.62 %
In 2013, 50.62% of the working capital was block in inventories
While in 2014, the working capital is negative due to current liabilities over current assets
So there is no question of blocking of working capital in inventories in the year 2014.

 Revenue Statement Ratio

1. Gross profit ratio: This ratio indicates profit ability of the company or organization it
is expressed in the form of percentage of gross profit to net sales.
It is a popular tool to evaluate the operational performance of the business . The ratio is
computed by dividing the gross profit figure by net sales.
When gross profit ratio is expressed in percentage form, it is known as gross profit
margin or gross profit percentage. The formula of gross profit margin or percentage is
given below:

Formula: Gross profit ratio = Gross profit / Net Sales * 100

The basic components of the formula of gross profit ratio (GP ratio) are gross profit
and net sales. Gross profit is equal to net sales minus cost of goods sold. Net sales are
equal to total gross sales less returns inwards and discount allowed. The information
about gross profit and net sales is normally available from income statement of the
company.

The Gross profit ratio of ACC Ltd can be calculated as follows:

Gross profit ratio (2014) = Rs 1250 (in crore) / Rs 11481 (in crore) * 100
= 10.88 %
Gross profit ratio (2013) = Rs 1368 (in crore) / Rs 10889 (in crore) * 100
= 12.56 %

When we compare the above gross profit ratios it indicates that the profitability of the
company in the year 2014 has decreased as compared to the profitability of the company
in the year 2013. This shows that the operational performance is getting down.

Gross profit is very important for any business. It should be sufficient to cover all
expenses and provide for profit.
There is no norm or standard to interpret gross profit ratio (GP ratio). Generally, a higher
ratio is considered better.
The ratio can be used to test the business condition by comparing it with past years ratio
and with the ratio of other companies in the industry. A consistent improvement in gross
profit ratio over the past years is the indication of continuous improvement . When the
ratio is compared with that of others in the industry, the analyst must see whether they
use the same accounting systems and practices.

2. Operating ratio: This ratio explains the relationship between operating expenses and
sales.

Formula: cost of goods sold + operating expenses / net sales * 100

The basic components of the formula are operating cost and net sales. Operating cost is
equal to cost of goods sold plus operating expenses. Non-operating expenses such as
interest charges, taxes etc., are excluded from the computations

The Operating Ratio of ACC Ltd can be calculated as follows:

Operating ratio (2014) = R.s 10230 (in crore) / R.s 11481 (in crore) * 100

= 89.10%

Operating ratio (2013) = R.s 9520 (in crore) / R.s 10889 (in crore) * 100

= 87.42%

This ratio is used to measure the operational efficiency of the management. It shows
whether the cost component in the sales figure is within normal range. A low operating
ratio means high net profit ratio i.e., more operating profit.

The ratio should be compared: (1) with the companys past years ratio, (2) with the ratio
of other companies in the same industry. An increase in the ratio should be investigated
and brought to attention of management. The operating ratio varies from industry to
industry.

While in ACC ltd the cost component in the sales figure is not within the normal stage
which is the (+) for the company.

3. Operating net profit ratio : This ratio gives the relation between net operating profit
and sales.

Operating net profit ratio is calculated by dividing the operating net profit by sales. This ratio
helps in determining the ability of the management in running the business.
Formula: Operating net profit ratio = (Operating profit / Net sales) *100
Where, Operating profit = Gross profit - Operating Expenses
Or
Operating profit = Net sales Operating cost
Or
Operating Profit= Net sales (cost of goods sold Operating + Administrative and
office expenses + Selling and distribution exp.)
The Operating Net profit ratio of ACC Ltd can be calculated as follows:
Operating net profit ratio (2014) = R.s 1507 (in crore) / R.s 11481 * 100
= 13.12%
Operating net profit ratio (2013) = R.s 1629 (in crore) / R.s 10889 * 100
= 14.96%

When we compare the above operating net profit we can consul that the ability of the
management in running the business is getting poor as the operating net profit ratio (2014)
has decreased by 2% as compared to the operating net profit ratio (2013).
The operating profit margin ratio is a key indicator for investors and creditors to see how
businesses are supporting their operations. If companies can make enough money from their
operations to support the business, the company is usually considered more stable. On the
other hand, if a company requires both operating and non-operating income to cover the
operation expenses, it shows that the business' operating activities are not sustainable.

A higher operating margin is more favorable compared with a lower ratio because this shows
that the company is making enough money from its ongoing operations to pay for its variable
costs as well as its fixed costs.

4. Net profit ratio : This ratio gives the relationship between net profit and sales.

It is computed by dividing the net profit (after tax) by net sales.

For the purpose of this ratio, net profit is equal to gross profit minus operating expenses and
income tax. All non-operating revenues and expenses are not taken into account because the
purpose of this ratio is to evaluate the profitability of the business from its primary
operations. Examples of non-operating revenues include interest on investments and income
from sale of fixed assets. Examples of non-operating expenses include interest on loan and
loss on sale of assets.
The relationship between net profit and net sales may also be expressed in percentage form.
When it is shown in percentage form, it is known as net profit margin.
Net profit (NP) ratio is a useful tool to measure the overall profitability of the business. A
high ratio indicates the efficient management of the affairs of business.
There is no norm to interpret this ratio. To see whether the business is constantly improving
its profitability or not, the analyst should compare the ratio with the previous years ratio, the
industrys average and the budgeted net profit ratio.
The use of net profit ratio in conjunction with the assets turnover ratio helps in ascertaining
how profitably the assets have been used during the period.

Formula : Net profit Ratio = Net profit After tax / Net sales *100
The Net profit ratio of ACC Ltd can be calculated as follows:
Net profit ratio (2014) = R.s 1168 (in crore) / R.s. 11481 (in crore) * 100
= 10.17%
In the year 2014 10.17% of the sales was profit.
Net profit ratio (2013) = R.s 1096 (in crore) / R.s 10889 ( in crore) * 100

= 10.06%
In the year 2013 10.06% of the sales was profit
There is no significant change in the net profit ratio of 2014 as compared to net profit
ratio of 2013. This ratio indicates that there is an efficient management of the affairs of
the business. But the profitability of the business in 2014 is same as it in 2013.
The above figures of net profit ratio show that the assets have been used profitably
during these 2 years (2013 & 2014).

5. Stock turnover ratio: This ratio indicates how many times stock is turn into sales. It is
also known as velocity ratio.
The inventory turnover ratio is an efficiency ratio that shows how effectively inventory is
managed by comparing cost of goods sold with average inventory for a period.
This ratio is important because total turnover depends on two main components of
performance. The first component is stock purchasing. If larger amounts of inventory are
purchased during the year, the company will have to sell greater amounts of inventory to
improve its turnover. If the company can't sell these greater amounts of inventory, it will
incur storage costs and other holding costs.
The second component is sales. Sales have to match inventory purchases otherwise the
inventory will not turn effectively. That's why the purchasing and sales departments must be
in tune with each other.
Inventory turnover is a measure of how efficiently a company can control its merchandise, so
it is important to have a high turn.
Formula: Stock turnover ratio = Cost of goods sold / average stock
where, average stock = (opening stock + closing stock) / 2
The stock turnover ratio of ACC Ltd can be calculated as follows:
Stock turnover ratio (2014) = R.s 10231 (in crore) / R.s 389 (in crore)
= 26.3
Stock turnover ratio (2013) = R.s 9520.82 (in crore) / R.s 386 (in crore)

= 24.66
From the above figures of the ratio we can say that
The company does not overspend by buying too much inventory and wastes resources by storing
non-salable inventory. It also shows that the company can effectively sell the inventory it buys.
This measurement also shows investors how liquid a company's inventory is. This measurement
shows how easily a company can turn its inventory into cash.
In 2014 it is 26 times that the stock had turned into sales while in 2013 it is 25
times the stock is turned into sales. This statistics shows that how efficient and
effective are the sales unit to the ACC Ltd.

Combined Ratio

1. Return on capital employed : The return on capital employed measures the proportion
of adjusted earnings to the amount of capital and debt required for a business to
function. For a company to remain in business over the long term its return on capital
employed should be higher than its cost of capital; otherwise, continuing operations
gradually reduce the earnings available to shareholders. It is commonly used to compare
the efficiency of capital usage of businesses within the same industry.
The return on capital employed is a better measurement than return on equity, because
ROCE shows how well a company is using both its equity and debt to generate a return.

It is the ratio of net profit to the capital employed by the proprietor in the business. It
expresses the profitability in the overall investments.
Formula : Return on capital employed = Net profit before interest & tax / total
net assets * 100
Where, total net assets = total assets current liabilities
The ROCE of the ACC Ltd can be calculated as follows:

ROCE (2014) = R.s 1135 (in crore) / R.s 8887.12 (in crore) * 100
= 12.77%
ROCE (2013) = R.s 1227 (in crore) / R.s 8438.25 (in crore) * 100
= 14.54%
From the above figures of ROCE (2014 & 2013) we can say that the capital usage in
2013 was more efficient than that of in the year 2014.as compared to 2014 the company
was using its equity & debts more effectively in the year 2013.
The ROCE has decreased by approx. 2% as compared to the 2013.

2. Return on proprietor fund : It is also known as share proprietor equity.

It gives an idea about the return expected on proprietors contribution in the business.
It is calculated after declining interest and tax from the net profit.
It is the ratio of net profit after tax to the proprietors fund.
Formula: ROPF ratio = Net profit after tax / proprietary fund * 100
The ROPF of the ACC Ltd can be calculated as follows:
ROPF (2014) = R.s 1168 (in crore) / R.s 8236 (in crore) * 100
= 14.18%
ROPF (2013) = R.s 1096 (in crore) / R.s 7825 (in crore) * 100
= 14%
As we can see that there is no significant change in ROPF (2014) as compared to ROPF (2013).
The company must strive to raise the ROPF by using the proprietary fund more effectively.

3. Return on equity capital and Return on equity shareholders funds: This ratio
indicates profit available to equity shareholders and return expected equity shareholder.
The amount of net income returned as a percentage of shareholders equity. Return on
equity measures a corporation's profitability by revealing how much profit a company
generates with the money shareholders have invested.
Formula: ROEC = Net profit after tax and preference dividend / equity capital * 100
Return on equity capital and return on equity shareholders funds of ACC Ltd can be
calculated as follows:
ROCE (2014) = Rs 1168 (in crore) / Rs 8236 (in crore) * 100
= 14 %
ROCE (2013) = Rs 1096 (in crore) / Rs 7825 (in crore) * 100
= 14 %
When we compare the above two ROEC i.e. of 2014 with 2013 we can consul that there
is no significant change between those ROEC. This indicates that the profit available to
equity shareholders and return expected equity shareholders (2014) is same as that of in
(2013). The profit generated by the company by investing shareholders money is 14%.

4. Earning per share: This ratio indicates earnings or returns which equity shareholder
will get per share.
The portion of a company's profit allocated to each outstanding share of common stock.
Earnings per share serves as an indicator of a company's profitability.
Earnings per share are generally considered to be the single most important variable in
determining a share's price. It is also a major component used to calculate the price-toearnings valuation ratio.
An important aspect of EPS that's often ignored is the capital that is required to
generate the earnings (net income) in the calculation. Two companies could generate
the same EPS number, but one could do so with less equity (investment) - that
company would be more efficient at using its capital to generate income and, all other
things being equal, would be a "better" company. Investors also need to be aware of
earnings manipulation that will affect the quality of the earnings number. It is important
not to rely on any one financial measure, but to use it in conjunction with statement
analysis and other measures.
Formula: Earning per share: Net profit available for equity shareholders /
No. of equity share.
The Earning per share of ACC Ltd can be calculated as follows:
Earnings per share (2014) = R.s 1168.29 (in crore) / 18, 77, 45,356
= R.s 62.22
Earnings per share (2013) = R.s 1095.76 (in crore) / 18, 77, 45,336
= R.s 58.36
Comparing the above two ratios we can consul that the earnings per share has
increased considerably which is R.s (3.86) per share. This indicates that the
companys profitability has increased.

5. Dividend Payout Ratio: It is also known as payout ratio. It measures the relationship
between the earning belonging to the ordinary shareholders and dividend paid to them.

In other words, this ratio shows the portion of profits the company decides to keep to
fund operations and the portion of profits that is given to its shareholders.
Formula: Dividend payout Ratio = E.P.S ( Earnings per share) / Dividend per share.
The dividend payout ratio of ACC Ltd can be calculated as follows:
Dividend Payout Ratio (2014) = R.s 34 / R.s 62 * 100
= 55%
Dividend Payout Ratio (2013) = R.s 30 / R.s 58 * 100
= 52%
The above Stats shows that the earning belonging to the ordinary shareholders 2014 and
the dividend paid per share are more than that of in 2013.
The portion of profits the company decided to keep to fund operations and the portion of
profits that is given to its shareholders is raised by 3%.

6. Price earnings ratio: This ratio indicates price paid by market for each rupee of earning
per share.
It is also known as price multiple ratio or earnings multiple ratios.
Generally a high P/E ratio means that investors are anticipating higher growth in the
future.
The average market P/E ratio is 20-25 times earnings.
The P/E ratio can use estimated earnings to get the forward looking P/E ratio.
Companies that are losing money do not have a P/E ratio.
Formula: Price earnings ratio = Market price of a share / Earning per share * 100
The price earnings ratio of ACC Ltd can be calculated as follows:

Price earnings ratio (2014) = R.s 1403.68 / R.s 62.23 * 100

= 22.56
Price earnings ratio (2013) = R.s 1103.78 / R.s 58.36 * 100
= 18.81
The above ratios states that the price paid by the market for each rupee of earning per share
to the ACC Ltd.is increased R.s 3 per share. This shows that the ACC Ltd is earning money
in a greater proportion which helps to build a strong financial position.

7. Debt service ratio: This ratio indicates the companys ability to make payment of
interest and installments of long term debt out of its net profit. In other words, this ratio
compares a company's available cash with its current interest, principle, and sinking fund
obligations.
The debt service coverage ratio is important to both creditors and investors, but creditors
most often analyze it. Since this ratio measures a firm's ability to make its current debt
obligations, current and future creditors are particularly interest in it.
Creditors not only want to know the cash position and cash flow of a company, they also
want to know how much debt it currently owes and the available cash to pay the current
and future debt.
Unlike the debt ratio, the debt service coverage ratio takes into consideration all expenses
related to debt including interest expense and other obligations like pension and sinking
fund obligation. In this way, the DSCR is more telling of a company's ability to pay its
debt than the debt ratio.
Formula: Debt service ratio = (Net profit before interest and tax + Depreciation +
Amortization) / (Interest + Principal Repayment)
The Debt service of ACC Ltd. Can be calculated as follows:
Debt service Ratio (2014) = R.s 1852.58 (in crore) / R.s 134.28 (in crore)
= R.s 13.79
Debt service Ratio (2014) = R.s 1741.48 (in crore) / R.s 134.28 (in crore)
= R.s 12.96

The above ratios indicates that the ACC Ltd.s ability to make payment off interest and
installments of long-term debt out of its profit has improved . This ensures that their
ability to fulfill its debt obligations, current and future creditors are particularly interest in
it has become strong. This Ratio will help the company to borrow funds in future needs
more efficiently.

8. Debt turnover ratio : The time required for conversion of debtors into cash is called as
debtors turnover ratios. It indicates the credit enjoyed by customer.
It's an efficiency ratio or activity ratio that measures how many times a business can turn its
accounts receivable into cash during a period. In other words, the accounts receivable
turnover ratio measures how many times a business can collect its average accounts
receivable during the year.

This ratio shows how efficient a company is at collecting its credit sales from customers.In
some ways the receivables turnover ratio can be viewed as a liquidity ratio as well.
Companies are more liquid the faster they can convert their receivables into cash

Formula: Debt turnover ratio = Net credit sales / Average debtors or Average B/R

The debt turnover ratio of ACC Ltd can be calculated as follows:

Debt turnover ratio (2014) = R.s 11481 (in crore) / R.s 410.71 (in crore)
= R.s 27.95
Debt turnover ratio (2013) = R.s 10889 (in crore) / R.s 397.22 (in crore)
= R.s 27.41
The above stats show that how frequently the company are collecting their receivables
throughout the year. Thus, the company was able to pay their debt of 35 crore in 2014.
Debtors turnover ratio also is an indication of the quality of credit sales and receivables.
ACC Company with a higher ratio shows that credit sales are more likely to be collected
than a company with a lower ratio.
In 2013 Debt turnover ratio was 27.41 from which has increased to 27.95 in 2014 which
denotes the strength of ACC Ltd.

 (Conclusion)
With the help of the financial report discussed before I came to the following SWOT
Analysis of ACC Ltd.

1
2
3
4

Strengths of ACC Ltd.

Weaknesses / (Challenges) For

ACC Ltd.

Holds the NO. 1 position in cement

industry in India in terms of installed
capacity.

Higher power & fuel consumption &

Raw material cost.

Higher Blended cement ratio @

91%.
Lower clinker cement ratio @ 65%.

Optimize the capacity utilization and

evaluate the material in the market .
Delays in projects implementation.

Strong & dedicated manpower.

Minimize clinker purchases.

Strong Balance sheets with strong

cash flow position.

The competitors are doing much

promotional activity rather than ACC
Limited thats why it facing more
problems in selling of product in the
market.

Strong position of cash & cash

equivalents.
Having a good image and brand
loyalty among consumers.
Service is good

Lack of awareness program for

consumers.

6
7
8
9

People ask for ACC

10

They have same price prevailing for

wholesale at dealers/stockiest
retailers end

11

There is no debts for the company

Opportunities for ACC Ltd

Threats before ACC Ltd.

Rapid growth is taking place in Bihar and

Madhya Pradesh

Large number of players in cement

industry makes it more competitive for
ACC to carefully price its product and
at the same time satisfy its dealers and
customers.

1
People are opting for more stable structures
and intensive use of cement is taking place,
even government is spending heavily on
2 infrastructure projects. Thus, this is the right
time to fully tap these markets

Players such as Jaypee Cement, Prism

Cement, and Birla Samrat are eating
up considerable market share.

As Indian core industry is also growing at rate

of nearly 10% per annum, it is having a good
3 future.

Due to Indias exponential growth

many new international cement
companies are expected in coming
years which will bring a tide of change
and can start price war.

Foreign direct investment in infrastructure

sector going to increase in coming years, which
will increase the demand of cement.

The emergence of small players in this

market may increase the competition
and start the malpractices, and heavy
discounts to retailers. They can also
influence many retailers by giving
better profit margin, and other
Benefits.

Roads
are
undergoing
through
the
transformation process through which the
5 traditional method of road building will be
replaced by modern concrete roads.

 (REFERENCES)
For Primary Data
1. Lokesh Jain (Sir) (Guidance).
2. ACCs 78th & 79th Annual report.
3. ACCs public journal (Latest edition)

Books referred.
1.
2.
3.
4.

Cost Management By Saxena & Vashist

Cost and Management Accounting By Ravi N Kishore
Essentials of Management Accounting By P. N Reddy
Advanced Management Accounting By Robert S Kailar
5. Management Accounting Khan & Sani

Net Surfing sites.

1.
2.
3.
4.
5.
6.

www.acclimited.com
www.wikipedia.com
www.bms.co.in
www.investopedia.com
www.myaccountingcourse.com
www.accountingcoach.com