Chapter 1 1.

1: Introduction to the topic Financial analysis

Almost all of the industrial enterprises whether they are into manufacturing, trading or service sector need Cement industry finance in order to run the businesses. So everyone approaches the Cement industry at some point of time for business loan whether it is for running day to day business or for setting up of a new project. A Cement industryer appraises the proposal and then decides whether to lend the money or not. Some tips on what goes behind the Fianacial analysis of the proposal by the Cement industryer. Fianacial analysis It is the process of appraising the credit worthiness of a loan applicant. Factors like age, income, number of dependents, nature of employment, continuity of employment, repayment capacity, previous loans, credit cards, etc. are taken into account while appraising the credit worthiness of a person. very Cement industry or lending institution has its own panel of officials for this purpose.

1.2: Objective of the study

!he main objective of the research is to understand the concept of credit "#oan$ appraisal. %hat is the definition of Fianacial analysis& 'ow can it function and control& %hat are the important things in Fianacial analysis& 'ow Cement industrys can control ()A with nil& !hrough this project we can also analy*e Cement industrying industry. %hat are the challenges this industry is facing. I also included overview of Cement industrying sector as well as types of Cement industry. I choose +A,) C - (! I(./S!0,for my study of FIA(ACIA# A(A#,SIS. It is the lending urban co1operative sector Cement industry. !hey perform in Fianacial analysis and control ()A in very good manner. !hat why it is interesting to know how they able to do this one,

Company profile

!he Jaypee Group is an conglomerate based in (oida, India. It was founded by +aiprakash 2aur which is involved in well diversified infrastructure conglomerate with business interests in ngineering 3 Construction, )ower, Cement, 0eal state, 'ospitality, 4pressways, I!, Sports 3 ducation "not1for1profit$.
History

+aiprakash 2aur, founder and chairman of +aiprakash Associates #imited after ac5uiring a .iploma in Civil ngineering in 6789 from the /niversity of 0oorkee:now called the Indian Institute of !echnology 0oorkee "II!0$:in 0oorkee, /ttarakhand, had a stint with the /ttar )radesh government and branched off on his own, to start as a civil contractor in 678;, group is the third largest cement producer in the country. !he groups cement facilities are located today all over India in 69 states, with 6; plants having an aggregate cement production capacity of <= million tonnes and same is poised to become >? million !onnes before @ctober <966.A=B A penalty of 0s6 billion was imposed on the group by the 2reen Cench of 'imachal )radesh 'igh Court for setting up a cement plant and a captive thermal power station in the state.A8B +aypee is IndiaDs third largest cement producer and the largest private sector hydropower company with 6,E99 -% in operation. !he +aypee 2roup successfully completed projects in 6; states of India and Chutan. +aypee is the engineering and construction company for IndiaDs ,amuna 4pressway, which opened 7 August <96<. +I#, the group flagship, has an engineering and construction wing which mostly supports +aypee projects. It also has the largest land bank in IndiaDs (ational Capital 0egion, i.e., (ew .elhi. +aypee has four thermal power plants totalling 8,6<9 -% under construction, and these are slated to go on stream by .ecember <96=.

Chapter 2 !"!# C$ %!&$O'O(OG)

!he purpose of research is to discover answer to the 5uestions through the application of scientific procedures. !he main aim of research is to find out the truth which is hidden and which has not been discovered as yet. !hough each research study has its own Specific purpose, we may think of following broad categoriesF !o gain familiarity with a phenomenon or to achieve new insights Into it. !o portray accurately the characteristics of a particular individual, Situation or a group. !o determine the fre5uency with which something occurs or with which it is associated with something else. 0esearch methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. 0esearch methodology has many dimensions and research methods do constitute a part of the research methodology. !he scope of research methodology is wider than that of research methods. !hus, when we talk of research methodology we not only talk of the research method but also consider the logic behind the methods we use in the conte4t of our research study and why we are using a particular method or techni5ue and we are not using others so that research results are capable of being evaluated either by the researcher himself or by other. %hy a research study has been undertaken, what data have been collected and what particular method has been adopted, why particular

techni5ue of analy*ing data has been used and a host of similar other 5uestion are usually answered when we talk of research methodology concerning a research problem or study. 0esearch is often described as activeG diligent and systematic process of in5uiry aimed at discovering, interpreting and revising facts.

!*+!C&!' O,&CO%! OF &$! "&,')

After learning the Fianacial analysis process at +A,) Cement industryand observing the findings, I put some of my recommendations which, firmly believe, would enhance the overall credit delivery process of the Cement industry and e4perience of the corporate clients. -y suggestions are as followsF Findin-s: Currently, the processing of credit proposal is done manually by officers. "u--estion: !he processing of Fianacial analysis can be e4pedited by using suitable software that can help the Cement industry in calculation of 0atios, credit rating and pricing. !he Cement industry could therefore make use of tools to evaluate the proposals for different interest rates and conditions. Findin-s: !he government and 0eserve Cement industry of India have devised compromise settlement schemes to help Cement industrys recover non performing assets specially for genuine borrowers. !he scheme provides concession and interest waivers so that immediate settlements can take place. "u--estion: !here are special software available that enables the Cement industry and the users in respect ofF o Speedy preparation, evaluation and approval of settlement proposals. o Availability of reliable information and systems to monitor and control the recovery process. !hus, such software could be installed to prepare and evaluate settlement schemes.

Conclusion

Currently the credit policy of the Cement industry is reviewed periodically by taking into account changes in political environment, economical environment and money markets, changes in credit policy announced by the 0eserve Cement industry of India and happening of other events to protect the interest of the Cement industry and to maintain profitability. )roper Fianacial analysis involving performance of client, sureties and industrial visits helps Cement industry to reduce its ()As and hence to reduce its credit risks. Cement industry has classified all the sectors in to five different categories such as core sector general sectors, sensitive sectors, banned sectors and restrictive sectors. If an individual H Cusiness concern or any other applicant need loan from Cement industry, they have to be member of the Cement industry. Cement industry use its own credit rating system, CICI# report as well as confidential report from other Cement industrys as per the needs to judge the credit worthiness of clients.

.iblio-raphy

.oo/s:
Financial management 1 )rasanna Chandra Circular 1 Abhyudaya co1operative Cement industry Cement industrying and law practices I S.#. 2upta 'andbook on working capital1 ..).Sarda

0ebsites:

httpFHHwww.abhyudayaCement <8.9?.<997 httpFHHwww.abhyudayaCement <8.9?.<997 httpFHHwww.wikipedia.org httpFHHwww.rbi.org.in

industry.co.inHprofitlossJmarch97.htm

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industry.co.inHresources3deployment.php

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httpFHHwww.cibil.com