1

INDEX

Sr. No.

Title Page No.

1 Company’s Background 3

2 Profit and Loss Account for the year ended 2009, 2010, 2011.

4

3 Balance Sheet as on 31st March 2009,2010, 2011. 6

4 Trend analysis and Comments 7

5 Acknowledgement 9

6 Bibliography 9

By: Yash Gilitwala 13Rohan Hatiskar 15Sparsh Kothari 26Sambhav Palawat 35Aman Thadani 53Mansingh Thoravde 54Hamza Valiulla 56Kanhay Visharia 57

2

COMPANY BACKGROUND

Ultratech Cement was incorporated in 2000 as Larsen & Toubro. Later it was demerged and acquired by Grasim and was renamed as Ultra Tech Cement in 2004. Today Ultatech cement a part of Aditya Birla group, is the country’s largest exporter of cement clinker.

It manufactures and markets Ordinary Portland Cement, Portland Blast Furnace Slag Cement and Portland Pozzolana Cement and has annual capacity of 18.2 million tonnes. All the plants have received ISO 9001 certification.

It has subsidiaries namely Dakshin Cements and UltraTech Ceylinco.

Products

It manufactures ordinary portland cement commonly used in dry-lean mixes, general-purpose ready-mixes, and even high strength pre-cast and pre-stressed concrete.

It produces Portland blast furnace that has features like lighter colour, better concrete workability, easier finishability, higher compressive and flexural strength, improved resistance to aggressive chemicals and more consistent plastic and hardened consistency.It also manufactures portland pozzolana cement.

Ultratech cement exports over 2.5 million tonnes per annum which accounts for 30% of country’s total exports. It exports to countries like Africa, Europe and the Middle East.

Milestone

Ultratech Cement received Greentech Environment Excellence Award by the Greentech Foundation, New Delhi in the year 2000-2001.

The Aditya Birla Group is the 11th largest cement producer in the world and the seventh largest in Asia.

In 2004-05 it received State and Zonal level I prize for overall performance in Mines safety.

Outlook

With demand for Ready Mix Concrete of Ultratech cement is increasing, in coming years it is commencing to set up a ready mix concrete plants at various places in the country.

3

PROFIT & LOSS ACCOUNT OF ULTRATECH CEMENT

4

             PARTICULARS ---------- in Rs. Cr. ---------- PERCENTAGE

  Mar '09 Mar '10 Mar '11 Mar '09 Mar '10 Mar '11

 

Income         

Sales Turnover 7,160.42 7,729.13 14,858.60 100 107.94241 207.51017

Excise Duty 774.92 686.31 1,652.96 100 88.565271 213.30718

Net Sales 6,385.50 7,042.82 13,205.64 100 110.29395 206.80667

Other Income 75.35 122.71 286.67 100 162.85335 380.45123

Stock Adjustments 86.34 4.59 66.11 100 5.3161918 76.569377

Total Income 6,547.19 7,170.12 13,558.42 100 109.51446 207.08762

Expenditure          

Raw Materials 1,280.31 1,593.03 2,752.86 100 124.42533 215.01511

Power & Fuel Cost 1,712.98 1,430.91 3,122.59 100 83.533375 182.28993

Employee Cost 216.76 250.28 666.5 100 115.46411 307.48293

Other Manufacturing Expenses 92.58 97.42 600.04 100 105.22791 648.13135

Selling and Admin Expenses 1,405.51 1,653.57 0 100 117.64911 0

Miscellaneous Expenses 28.88 48.58 3,587.40 100 168.2133 12421.745

Preoperative Exp. Capitalized -8.38 -4.02 0 100 47.97136 0

Total Expenses 4,728.64 5,069.77 10,729.39 100 107.21412 226.90224

             

Operating Profit 1,818.55 2,100.35 2,829.03 100 115.49586 155.56515

Interest 134.09 124.11 277.11 100 92.557238 206.65971

PBDT 1,684.46 1,976.24 2,551.92 100 117.32187 151.49781

Depreciation 323 388.08 765.73 100 120.14861 237.06811

Profit Before Tax 1,361.46 1,588.16 1,786.19 100 116.65124 131.19666

Extra-ordinary items 0 0 125.52 100 0 0

PBT (Post Extra-ord Items) 1,361.46 1,588.16 1,911.71 100 116.65124 140.41617

Tax 384.44 494.92 507.48 100 128.7379 132.00499

Reported Net Profit 977.02 1,093.24 1,404.23 100 111.89536 143.72582

Total Value Addition 3,448.33 3,476.74 7,976.53 100 100.82388 231.31574

Preference Dividend 0 0 0 100 0 0

Equity Dividend 62.24 74.69 164.42 100 120.00321 264.17095

Corporate Dividend Tax 10.58 12.41 26.67 100 117.29679 252.0794

Per share data (annualized)

         

Shares in issue (lakhs) 1,244.86 1,244.87 2,740.42 100 100.0008 220.13881

5

Earning Per Share (Rs) 78.48 87.82 51.24 100 111.90112 65.29052Equity Dividend (%) 50 60 60 100 120 120

Book Value (Rs) 289.22 370.05 389.04 100 127.94758 134.51352

BALANCE SHEET OF ULTRATECH CEMENT             

PARTICULARS ------- in Rs. Cr.-------- PERCENTAGE

  Mar '09 Mar '10 Mar '11 Mar '09 Mar '10 Mar '116

 SOURCES OF FUNDS            Owners Funds            Total Share Capital 124.49 124.49 274.04 100 100 220.13Equity Share Capital 124.49 124.49 274.04 100 100 220.13Share Application Money 1.68 1.99 4.78 100 118.45 284.52Preference Share Capital 0 0 0 100 0 0

Reserves 3,475.93 4,482.1710,387.2

2100 128.95 298.83

Revaluation Reserves 0 0 0 100 0 0

Networth 3,602.10 4,608.6510,666.0

4100 127.73 296.11

Borrowed Funds (Long Term)            Secured Loans 1,175.80 854.19 2,789.76 100 72.65 237.26Unsecured Loans 965.83 750.33 1,354.84 100 77.69 140.28Total Debt 2,141.63 1,604.52 4,144.60 100 74.92 193.52TOTAL CAPITAL EMPLOYED

5,743.73 6,213.1714,810.6

4100 108.17 257.86

 APPLICATION OF FUNDS            

Gross Block 7,401.02 8,078.1417,942.2

7100 109.14 236.43

Less: Accum. Depreciation 2,765.33 3,136.46 6,542.02 100 113.42 236.57

Net Block 4,635.69 4,941.6811,400.2

5100 106.6 245.92

Capital Work in Progress 677.28 259.37 1,105.32 100 38.29 163.19Investments 1,034.80 1,669.55 3,730.32 100 164.23 360.48Inventories 691.97 821.7 1,956.52 100 118.74 282.74Sundry Debtors 186.18 215.83 602.29 100 115.92 324.49Cash and Bank Balance 104.49 83.73 144.79 100 80.13 138.56Total Current Assets 982.64 1,121.26 2,703.60 100 114.1 275.13Loans and Advances 395.71 374.92 1,055.10 100 94.74 266.63Fixed Deposits 0 0 0 100 0 0Total CA, Loans & Advances 1,378.35 1,496.18 3,758.70 100 108.54 272.69Deffered Credit 0 0 0 100 0 0Current Liabilities 1,860.59 1,992.60 4,610.46 100 107.09 247.79Provisions 121.8 161.01 573.49 100 132.19 470.84Total CL & Provisions 1,982.39 2,153.61 5,183.95 100 108.63 261.5Net Current Assets -604.04 -657.43 -1,425.25 100 108.83 235.95Miscellaneous Expenses 0 0 0 100 0 0

Total Assets 5,743.73 6,213.1714,810.6

4100 108.17 257.85

Contingent Liabilities 355.07 420.26 4,220.47 100 118.35 1188.63Book Value (Rs) 289.22 370.05 389.04 100 127.94 134.51

7

TREND ANALYSIS

On Profit and Loss Account:Even though net sales of the company have increased by 106% since March 09 however Gross profit does not increase in the same proportion. This is because of abrupt increase in manufacturing cost by 600 % in 2010-11 which shows that the prices of factors of production have increased.Increase in depreciation is due to increase in the fixed assets i.e. Increase in depreciation in 2010-11 is 137.06% and increase in gross block is 136.43%.Brand has established which can be seen n decline of the selling expenses and increasing sales. Selling expenses is nil in the year 2010-11 which indicates successful positioning of the brand in the market.Raw materials expenses have increased by 115.01%i.e. from 1280.31 in 08-09 crores to 2752.86i 10-11. This increase is due to he increased production capacity as the sales are also increasing proportionately.Increase in power and fuel cost and Employee cost is also due to expansion and increased capacity. However proportionate increase in the employee cost is higher which indicates that highly qualified managers and skilled employees were appointed due to expansion. Initial decrease in interest payments in 09-10 by 7.5% indicates repayment of the loans and Increase in interest payments by 106.65% in 10-11 as compared to 09-10 indicated rise in borrowed funds.

On Balance Sheet:Analysis of the above financial data shows that the company issued fresh 1495.55 lakhs shares and increasing equity capital of the company by 110.13% making it 274.04 crores. The decline in borrowed funds in the year 2010-11 shows that some part of the loans were paid back however it increases in the next year by 93.52%. Thus raising of funds through equity and borrowed funds show that the company had major plans of expansion in the year 2011.Debt equity ratio of the company has fallen down from 0.59 in 2009-10 to 0.38 in the year 2010-11 which indicates company is undertaking its business with safe approach rather than a risky approach. Trading on equity is more. Fresh issue of new stocks and company failing to increase its profit in the same ratio has decreased the earnigs per share from 78.48 to 51.24 Rs.Current ratio of the company increases from 0.59 2009-10 to 0.73 in 2010-11 which shows that no the company is in better position to pay its current liabilities from the current assets. Increase of quick ratio also over the period also indicates that the company is also in better position while meeting the quick liabilities as compared to the previous years. However the current ratio is very less which shows that the short term solvency of the company is not good. Company should take proper measures to increase the current ratio.

8

Interest coverage ratio decreases form 12.75 in 2009-10 to 7.45in 2010-11 which shows that due to extra borrowed funds the burden on the company has increased in form of higher interest rates payment which reduces the profitability of the business.There has been proportionate increase in the fixed assets and investments with issue of equity capital and increase in borrowed funds.. This conveys that major chunk of the increased capital was used to buy fixed assets and apply in long term investments.Increase in Reserves indicate that the company ploughs backs considerable amount of profits into the reserves. Increased reserves show company’s future development chances.

9

Acknowledgement

We would like to thank Professor Amit Nandu for giving us such an interesting topic to work on and guiding us throughout the project. We are very grateful to him for giving us insight knowledge in the field of data interpretation and analysis of company’s accounts. This informative experience has surely added values to our accounting sense and made us better analyst in management accounting. This project has given us an open opportunity to work on a company’s Financial data and draw conclusions. We have learnt a lot from this project.

Bibliography

1) http://www.ultratechcement.com/2) http://economictimes.indiatimes.com/prices.cms?

companyid=3027&fromdate=&todate=&frequency=&numberofdmw=100&exchangeid=50&pagesize=25&pagenumber=1&arc=0

3) http://pdf.marketpublishers.com/93/ultratech_cement_limited_swot_analysis_bac.pdf4) http://www.moneycontrol.com/financials/ultratechcement/ratios/UTC015) http://www.alacra.com/acm/2054_sample.pdf6) http://myiris.com/shares/company/financial.php?icode=ULTCEMCO7) http://money.livemint.com/IID64/F132538/Financial/Ratios/Company.aspx

10