a mini project report on fiancial management

7/31/2019 A Mini Project Report on Fiancial Management

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A MINI PROJECT REPORT ON FIANCIAL

MANAGEMENT

(INDIA CAMANTS .LTD )

Under Guidance of : SUBMITTED BY:

Mr. Ashutosh Agarwal Amit Kumar Sharma

(Asst. Prof. MBA dept.) MBA 2ND SEM (LKCE)

ROLL NO.-07


2/15

INDEX

S NO. CONTENTS

1 INTRODUTION OF THE COMPANY

2 Balance Sheet of India Cements

3 Profit loss account

4 Cash flow

5 Ratios Analysis

6 Graphs

7 Analysis and comparison of different function area

(HR,PRODUCTION & OPERATION,FINANCE ETC.)

8SWOT ANYLISIS

9

COMPANY SHARE PERFORMANCE WITH STOCK MARKET AND PEER GROUP

10 Possitive Points for this stock for Up moving:

11

.


3/15

INTRODUTION OF THE COMPANY

The Founders

GENESIS

" There's no stronger foundation than the one built with vision."

S.N.N.Sankaralinga

Iyer

(1901-1972)

T.S.Narayanaswami

(1911-1968)

FOUNDERS OF THE INDIA CEMENTS LTD.

Two men with vision to inspire dreams for an industrial India. Two men with the ability to translate those

dreams into reality. And the ability to build enduring relationships..... To build the future.

In his task of establishing the enterprise, Shri Iyer was ably assisted by Shri T.S. Narayanaswami, who is

always identified with the formation and running of The India Cements Limited. Shri T.S.Narayanswami was

the catalyst who saw the project through numerous hurdles and made it emerge as a viable and marketable

proposition.

He looked beyond Cement to Aluminium production, Chemicals and Plastics and Shipping after he had fully

established the India Cements' potential for expansion. A pioneer Industrialist and visionary, Shri T.S.Narayanswami played a dynamic role in the resurgence of industrialisation in free India .

Company Profile

The India Cements Ltd was established in 1946 and the first plant was setup at Sankarnagar in Tamilnadu in 1949 .

Since then it has grown in stature to seven plants spread over Tamilnadu and Andhra Pradesh . The capacities as on

March 2002 have increased multifold to 9 million tons per annum.

The Vision

The new millennium will bring with it new challenges and greater opportunities. The 21st century will most certainly

see the unfolding of a period of extraordinary possibilities and incredible developments bringing about more

fundamental changes in the global economy than the last 200 years. The successful corporates will be those who

equip themselves to meet the challenges and convert opportunities into winning strategies. If we are to keep pace, it is

imperative that we learn to successfully tread the global pathway.


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The Mission

Aiming High:

We should be one of the largest Cement Companies in the Country. Our growth in size will be through

continuous review of potentials of the existing manufacturing resources, strategic acquisitions and expansions

Core Competency:

Cement will be ourmainstay. However, we shall venture into related fields which afford purposeful synergy.

Quality Quest:

Product quality, consistency and customer service will be pursued as an act of faith throughout the

organisation.Modern Mindset:

In an environment which is intensively competitive, we shall be futuristic in outlook and effective in

management.

Pursuit Of Excellence:

The growing size of our business permit us to have an R & D set up of our own. We shall continuously

challenge methods, systems, operating parameters. We shall constantly review our manufacturing systems to

upgrade quality and value of products.

Human Resources:

We considerpeople as our valuable Assets. Our HRD Systems will be totally proactive and tuned to provide

excellent working environment and transparent organisational culture for creativity, innovation and

participation.

Value Addition:

ICL will continuously strive to enhance its value to its customers, ShareHolders and Employees.

Community Welfare:

As the organization grows, as a good Corporate Citizen, we shall be sensitive to the welfare and development

needs of the Society around us


5/15

Balance Sheet of India

Cements------------------- in Rs. Cr. -------------------

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds

Total Share Capital 163.59 215.77 220.37 281.87 282.43Equity Share Capital 138.59 190.77 220.37 281.87 282.43

Share Application Money 13.91 13.91 40.00 0.00 0.00

Preference Share Capital 25.00 25.00 0.00 0.00 0.00

Reserves 199.42 670.22 1,166.18 2,314.94 2,683.03

Revaluation Reserves 912.29 857.02 781.98 724.30 665.93

Networth 1,289.21 1,756.92 2,208.53 3,321.11 3,631.39

Secured Loans 1,845.28 1,403.39 1,165.99 971.02 1,036.25

Unsecured Loans 141.96 121.85 892.77 840.49 951.78

Total Debt 1,987.24 1,525.24 2,058.76 1,811.51 1,988.03Total Liabilities 3,276.45 3,282.16 4,267.29 5,132.62 5,619.42

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds

Gross Block 2,985.28 3,002.75 3,856.04 4,708.69 5,313.58

Less: Accum. Depreciation 783.43 918.76 1,060.21 1,244.24 1,505.33

Net Block 2,201.85 2,083.99 2,795.83 3,464.45 3,808.25

Capital Work in Progress 2.99 30.98 142.75 574.91 904.04

Investments 34.84 34.84 55.07 129.28 158.97

Inventories 201.60 213.82 248.50 350.64 390.92

Sundry Debtors 183.38 240.59 260.21 311.07 353.98

Cash and Bank Balance 1.28 2.80 216.15 7.84 5.40

Total Current Assets 386.26 457.21 724.86 669.55 750.30

Loans and Advances 1,168.11 1,087.71 995.90 1,062.06 1,331.88

Fixed Deposits 1.64 40.82 14.04 417.80 79.80

Total CA, Loans & Advances 1,556.01 1,585.74 1,734.80 2,149.41 2,161.98

Deffered Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 539.72 495.09 463.82 1,143.36 1,342.01

Provisions 1.42 0.00 30.46 65.89 85.37

Total CL & Provisions 541.14 495.09 494.28 1,209.25 1,427.38

Net Current Assets 1,014.87 1,090.65 1,240.52 940.16 734.60

Miscellaneous Expenses 21.89 41.70 33.12 23.79 13.55

Total Assets 3,276.44 3,282.16 4,267.29 5,132.59 5,619.41

Contingent Liabilities 438.77 464.53 295.29 597.23 315.39

Book Value (Rs) 24.22 45.13 62.92 92.13 105.00


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Profit loss account

Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Income

Operating income 3,358.34 3,044.25 2,255.21 1,541.75 1,162.14

Expenses

Material consumed 392.97 310.58 256.36 229.60 153.87

Manufacturing expenses 941.59 721.62 574.14 503.43 449.01Personnel expenses 218.74 186.61 103.40 82.52 80.24

Selling expenses 685.63 638.09 513.51 414.39 298.23

Adminstrative expenses 180.79 94.77 62.49 45.05 38.50

Expenses capitalised - - - - -

Cost of sales 2,419.73 1,951.67 1,509.89 1,274.98 1,019.85

Operating profit 938.61 1,092.58 745.31 266.77 142.29

Other recurring income 115.06 40.79 3.18 6.88 12.52

Adjusted PBDIT 1,053.67 1,133.37 748.49 273.65 154.81

Financial expenses 112.15 109.95 149.80 148.93 133.50

Depreciation 203.32 127.92 102.63 78.87 78.77

Other write offs 10.24 10.44 10.38 5.35 5.68

Adjusted PBT 727.96 885.06 485.68 40.51 -63.14

Tax charges 216.13 207.10 13.13 4.67 -

Adjusted PAT 511.83 677.96 472.55 35.84 -

Non recurring items -79.74 -40.42 6.28 9.47 67.72

Other non cash adjustments 0.09 - - - -

Reported net profit 432.18 637.54 478.83 45.31 4.58

Earnigs before appropriation 959.50 684.11 216.30 -262.53 -307.84

Equity dividend 54.85 65.89 30.46 - -

Preference dividend - - - - -

Dividend tax 11.23 0.90 19.65 - -

Retained earnings 893.41 617.32 166.19 -262.53 -307.84


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Cash flow

Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Profit before tax 648.30 892.78 491.96 40.41 -58.82

Net cashflow-operating activity 706.13 1,016.87 643.07 164.36 214.18

Net cash used in investing activity -941.82 -1,017.31 -239.55 -29.27 -96.20

Netcash used in fin. activity -104.76 195.90 -222.43 -94.38 -118.79

Net inc/dec in cash and equivlnt -340.44 195.46 181.08 40.70 -0.80

Cash and equivalnt begin of year 425.64 230.18 49.10 2.92 3.72

Cash and equivalnt end of year 85.20 425.64 230.18 43.62 2.92

Ratios (Rs crore)


8/15

Mar ' 09 Mar ' 08 Mar ' 07Mar '

06

Mar '

05

Per share ratios

Adjusted EPS (Rs) 18.12 24.05 21.44 1.88 -4.52

Adjusted cash EPS (Rs) 25.68 28.96 26.57 6.29 1.53

Reported EPS (Rs) 15.30 22.62 21.73 2.38 0.32

Reported cash EPS (Rs) 22.86 27.53 26.86 6.79 6.38

Dividend per share 2.00 2.00 1.00 - -

Operating profit per share (Rs) 33.23 38.76 33.82 13.98 10.20

Book value (excl rev res) per share (Rs) 10.73 10.73 61.42 42.95 22.65

Book value (incl rev res) per share (Rs.) 10.73 10.73 96.90 87.87 88.03

Net operating income per share (Rs) 118.91 108.00 102.34 80.82 83.28

Free reserves per share (Rs) 87.77 74.43 42.60 23.97 0.20

Profitability ratios

Operating margin (%) 27.94 35.88 33.04 17.30 12.24

Gross profit margin (%) 21.89 31.68 28.49 12.18 5.46

Net profit margin (%) 12.44 20.66 21.20 2.92 0.39

Adjusted cash margin (%) 20.88 26.46 25.92 7.75 1.81

Adjusted return on net worth (%) 17.33 26.34 34.91 4.37 -19.97

Reported return on net worth (%) 14.64 24.77 35.37 5.53 1.44

Return on long term funds (%) 17.84 23.34 19.65 8.94 3.68

Leverage ratios

Long term debt / Equity 0.58 0.64 1.33 1.46 4.65

Total debt/equity 0.67 0.69 1.48 1.80 5.95

Owners fund as % of total source 59.86 58.90 40.24 35.70 14.38

Fixed assets turnover ratio 0.68 0.70 0.58 0.51 0.38

Liquidity ratios

Current ratio 1.51 1.78 3.51 3.20 2.88


9/15

CHART (RS. CRORE)
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10/15


11/15


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13/15

COMPANY SHARE PERFORMANCE WITH STOCK MARKET

AND PEER GROUP

How hot is this stock? Rediff.com

INDAI CEMENTS.LTD

Report card

UltraTech Cement

Report card

Ambuja Cements

Ltd. Report card

Attribute Value Date

PE ratio 7.86 12/03/10

EPS (Rs) 15.30 Mar, 09

Sales (Rs crore) 875.97 Dec, 09

Face Value (Rs) 10

Net profit margin (%) 12.44 Mar, 09

Last bonus 1:1 21/12/96

Last dividend (%) 20 29/06/09

Return on average equity 14.64 Mar, 09


PE ratio 14.05 12/03/10

EPS (Rs) 78.48 Mar, 09

Sales (Rs crore) 1,669.30 Dec, 09

Face Value (Rs) 10



Return on average equity 27.13 Mar, 09


PE ratio 14.53 12/03/10

EPS (Rs) 8.00 Dec, 09


Face Value (Rs) 2

Net profit margin (%) 16.78 Dec, 09

Last bonus 1:219/04/05


Return on average equity 18.83Dec, 09
http://money.rediff.com/companies/ultratech-cement/11520068http://money.rediff.com/companies/ambuja-cements-ltd/11510005http://money.rediff.com/companies/ambuja-cements-ltd/11510005http://money.rediff.com/companies/ultratech-cement/11520068http://money.rediff.com/companies/ambuja-cements-ltd/11510005http://money.rediff.com/companies/ambuja-cements-ltd/11510005


14/15

ACC Ltd.

Report card

BIRLA CORPORATION .LTDReport card

INDIA CEMENTS Ltd doing very good,


PE ratio 11.67 12/03/10

EPS (Rs) 85.49 Dec, 09


Face Value (Rs) 10

Net profit margin (%) 16.29 Dec, 08

Last bonus 3:5 02/04/96


Return on average equity 24.61 Dec, 08


PE ratio 8.68 12/03/10

EPS (Rs) 42.01 Mar, 09

Sales (Rs crore) 564.08 Dec, 09

Face Value (Rs) 10


Last bonus 1:2 30/09/91

Last dividend (%) 2523/10/09

Return on average equity 25.28Mar, 09
http://money.rediff.com/companies/acc-ltd/11510001http://money.rediff.com/companies/acc-ltd/11510001


15/15

The Company is the largest producer of cement in South India.

The Companys plants are well spread with three in Tamilnadu and four in Andhra Pradesh

which cater to all major markets in South India and Maharashtra.

The Company is the market leader with a market share of 28% in the South. It aims to

achieve a 35% market share in the near future. The Company has access to huge limestone

resources and plans to expand capacity by de-bottlenecking and optimisation of existing

plants as well as by acquisitions.

The Company has a strong distribution network with over 10,000 stockists of whom 25%

are dedicated.

The Company has well established brands- Sankar Super Power, Coromandel Super Power

and Raasi Super Power.

Regional offices in all southern states and Maharasthra offices/representative in every

district.

The Company has privately placed 2,07,89,000 equity shares at a price of Rs.285/- per share

(including premium of Rs.275/- per share) by way of Qualified Institutional Placement in

December 2007.

Possitive Points for this stock for Up moving:

1) Company doing very good; EPS 25/- Expecting for 2009-10;.

2) Mumbai Bulls and Operators are accumulating at current price. Because Company Strong

Fundamentals. And available at very cheep price.3) Company having Good Land Bank in Tamilanadu and Aandhrapradesh and Company

having Good Reserves; Book Value at 115/-.

4) Good Dividend paying Company; Every year 20%.

5) Company given very good results EPS 16/- PE only 6 for year 2008-09;

6) Company Projected EPS for 2009-2010 is 25/-as per this PE just 4

7) Lot of expansion plans in Coming soon.

Very good future for this company

Enter current price at 113/- Short term Target 175/- & 235/-Medium Term; StrongFundamentals. Good Valuable Stock.

a mini project report on fiancial management

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