AN IMMERSION PROJECT REPORT ON COMPARATIVE ANALYSIS OF MAIN CO.

AND SECONDARY CO.

SUBMITTED TO

SAL INSTITUTE OF MANAGEMNENT

AFFILIATED TO GUJARAT TECHNOLOGICAL UNIVERSITY

UNDER THE GUIDANCE OF

ASST.PROF. MARGI CHOKSI/ASST. PROF. ANIMESH BANKER

SUBMITTED BY:

RAJDEEP SINGH 198070592054

SHIVANI NAIK 198070592113

RINKAL BINWANI 198070592048

TWINKLE LULLA 198070592100

RAJVI JOSHI 198070592086

 SCHEDULE OF THE REPORT

Sr. No Chapters No. Of

Pages

1 Chapter-1 : Introduction of Industry/ 6-7

Sector - Introduction Pages
-History evaluation
-Current perspective
-Challenges of Industry

2 Introduction of Companies 6-7

-History Pages
-Mission-Vision statement
-Organization structure
-Milestones
-Product Profile
-SWOT Analysis

3 Subjective Analysis

3.1 Economics for managers 12-14

-Demand and supply of product and services. Pages
-Competitive analysis
-Market Structure of the company ( Whether
monopoly,
oligopoly etc)
-Pricing decision
-Opportunity cost of the company
-Cost of Production

3.2 Managerial communication 8-10

-Study of formal communication channel Pages
-Study of informal communication channel
-How communication takes place between people
belonging to different hierarchy?
-What sort of communication channel they follow?
-Types of communication and Process of it

3.3 Management Information System 10-12

-To understand the information system that prevails in
the Pages
company.
-Which technologies they are using in the respective
 company for centralized communication?
-Analysing how MIS impact a firm in
terms of value creation and strategic
advantage
-Role of MIS in achieving competitive business
advantage through better decision making
3.4 Organizational Behaviour 10-12
-How Goal Setting is done? Pages
policie
-Which Motivation s are executed
for
employees?
-Strategies used to build group dynamics
-What
sort of leadership is
followed?
-How Performance evaluation is conducted?
-Which are practices followed for
change management?

3.5 Management Accounting 15-17

-Balance Sheet analysis of both the companies
individually Pages
and inter comparison has to be done to draw necessary
conclusions about the similarities and differences.
-Ratio analysis needs to done and necessary
conclusions
has to be provided.

3.6 Business Statistics 15-17

-Taking the past data like sales data, calculate various Pages
statistical terms with the help of SPSS software like
descriptive statistics, inferential statistics and
relationship
statistics

3.7 Business Ethics and Corporate Governance. - 10-12

Whether companies adhere to corporate governance Pages
policies or
not.
-How compliance to corporate
governance is executed?
-Policies for whistle blowing
-Conduct CSR performance
4 Practical Learnings from the Project

5 Bibliography
 CHAPTER:1 INTRODUCTION OF INDUSTRY

Introduction:

The second largest cement producer in the world is Indian cement industry. Indian cement
industry plays an important role in the economic Development of the company, in the rapid
growth and development of the country because cement is a fundamental requirement. It
provides employment in the large scale.

Government of India is giving a boost to infrastructure project housing facilities, and road
networks at a large scale. Cement is the basic material which is used in all type of construction.
Cement is used in bridges, dams, industrial construction, housing, road etc. In the coming year
more growth in Indian cement industry is expect to come. It is estimate that the production in
India would increase to 236.16 MT in FY11&expected to increase to 262.61 MT in FY12 in the
Cement industry.

The Indian cement industry is manage by 20 companies, which account for nearly 70% of the
total cement production in India. it is one of the huge industries for economic development. The
total utilization of cement in a year is used as an indicator of economic growth. It is constitutes
of 140 large and more than 365 small cement plants. It‟s capacity at the beginning of the year

2009-10 was 217.80 million tones. The Indian Cement Industry comprises of 125 units with an
installed capacity of 148.28 million tones and more than 300 small cement plants with an
estimated capacity of 11.10 million tones per annum.

It occupies an important place in the Indian economy because of construction, transportation,

coal, powder. India has a lot of potential for development in the infrastructure and construction
sector and the cement sector is expected to largely benefit from it. Some of the recent major
government initiatives such as development of 98 smart cities are expected to provide a major
huge to the sector. Cement production is an energy intensive process.
HISTORICAL BACKGROUND OF CEMENT INDUSTRY

Cement is an important component of the infrastructure development. It is the most important

input of construction industry, particularly in the government‟s infrastructure and housing
programs. It is necessary for the country‟s socio-economic growth and development. It is known
as the second most consumed material on the planet. The Indian cement industry is the second
largest producer of the cement in the world, which is just behind China, but it is ahead of the
United States and Japan. It is considered to be a core sector of accounting for approximately
1.3% of GDP and is employing over 0.14 million people. The industry is an significant
contributor to the revenue collected by both the central and state governments through the excise
and sales taxes.

Evolution of the Indian Cement Industry:

The story of evolution of the Indian cement industry is long. It has seen many ups and downs,
but finally has arrived in its maturity stage since it is beginning to gather the benefits of its
decontrol by the government in the year 1989-90.

The Invention of Cement

Ever since civilizations had first started to build the world as it has sought a man made bonding
material that would bind stones into a solid, formed mass. The Egyptians had discovered the lime
and gypsum mortar as a binding agent for building such structures as the Pyramids. The Greeks
had made further improvements and than finally the Romans had developed the cement that
produced structures of remarkable durability (Cement Association of Canada 2006). John
Smeaton often referred to as the „‟father of civil engineering‟‟ in England, had concentrated his
work in this field and made the first modern concrete by adding pebbles as a coarse aggregate
and mixing the powered brick into the cement in 1759. Finally, in the year 1824 Joseph Aspdin
patented the basic process of slower-setting cement. He addressed this as the „‟Portland
cement‟‟ due to the fact that in appearance and hardness, it resembled the upper Jurassic rock
which is found in the region of Portland, in southern England (Lafarge 2004).
Indian Cement Industry Pre Independence

The first endeavor to manufacture cement dates back to the year 1889 when a Calcutta based
company endeavored to manufacture cement from Argillaceous (kankar). But the first endeavor
to manufacture cement in an organized way was commenced in Madras. South India Industries
Limited began manufacture of Portland cement in the year 1904. But the effort had not
succeeded and the company had to halt the production. Finally it was in the year 1914 that the
first licensed cement manufacturing unit was set up by India Cement Company Ltd at Porbandar,
Gujarat with an available capacity of 10,000 tons and the production of 1000 installed. The First
World War had gave the impetus to the cement industry still in its initial stages. The following
decade saw tremendous progress in terms of the manufacturing units, installed capacity and
production. This phase is also referred to as the Nascent Stage of the Indian Cement Industry.
During the earlier years, the production of cement exceeded to its demand. The Indian Society
had a biased opinion against the cement manufactured in India, which further had led to the
reduction in demand. The government had intervened by giving protection to the Industry and by
encouraging the cooperation among the manufacturers. In the year 1927, the Concrete
Association of India was formed with the twin goals of creating a positive awareness among the
public of the utility of cement.

Indian Cement Industry Post-Independence

The growth rate of cement was slow around the period after the independence due to various
factors like low prices, slow growth in additional capacity and rising cost. The government had
intervened several times to boost the industry, by increasing the prices and providing financial
incentives. But it had very little impact on the industry. In the year 1956, the price and
distribution control system was set up to ensure the fair prices for both the manufacturers and the
consumers across the country and to reduce the regional imbalances and reach self sufficiency.

Period of Restriction (1969-1982)

The cement industry in India was severely restrained by the government during this period of
restriction. Government‟s hold over the industry was through both the direct and indirect means.
Government had intervened directly by exercising the authority over production, capacity and
distribution of cement and it intervened indirectly through price control. In the year 1977, the
government had authorized higher prices for cement manufactured by new units or through
capacity increase in existing units of cement. But still the growth rate was below the par. In the
year 1979, the government introduced a three tier price system. The Prices were different for the
cement produced in low, medium and high cost plants. However the price control did not had the
desired effect. Rise in the input cost, reduced profit margins meant that the manufacturers could
not allocate funds for increase in the capacity.

Partial Control (1982-1989)

To give impetus to the cement industry, the Government of India introduced a quota system in
the year 1982.A quota of 66.60% was imposed for the sales to four Government and small real
estate developers. For the new and sick units a lower quota at 50% was affected. The remaining
quota of 33.40% was allowed to be sold in the open market. These changes had a desired effect
on the cement industry. Profitability of the manufacturers increased substantially, but the rising
input cost was a cause for concern for the cement industries.

Post Liberalization In 1989

The India Cement Industry was given complete freedom, to gear it up and to meet the challenges
of free market competition due to the impending policy of liberalization. In the year 1991 the
industry was de licensed. This had resulted in an accelerated growth for the industry and
availability of the state of the art technology for modernization. Most of the major players had
invested heavily for capacity. To maximize the opportunities available to the industries in the
form of global markets, the industries laid greater focus on exports. The role of the government
has been extremely crucial in the growth and development of the industry.
Current Perspective Of Cement Industry;

With 460 million tonnes per year (mtpa) of cement production capacity as in the year 2018, India
is the second largest cement producer in the world and accounts for over 8 per cent of the global
installed capacity, as in the year 2018. The production of cement stood at 28.3 tonnes as of june
19 . The cement production capacity is estimated to touch 550 MT by the year 2020. Of the total
capacity of cement, 98 per cent lies with the private sector and the rest lies with the public sector.
The top 20 companies had been accounted for around 70 per cent of the total production.

“The demand of the Cement Industry has been expected to achieve 550-600 million tonnes per
annum constantly by the year 2025 because of the expanding requests of the different divisions
i.e. housing, commercial construction and industrial construction.”

A total of 210 large cement plants have together accounted for 410 million tonnes of the installed
capacity in the whole country, while 350 mini cement plants made up the rest. Out Of the total
210 large cement plants in India, 77 of them are located in the states of Andhra Pradesh,
Rajasthan and Tamil Nadu. Cement production in India is increased from 230.49 million tonnes
in the year 2011-12 to 297.56 million tonnes in the year 2017-18. India‟s exports of cement,
clinker and asbestos cement has increased at CAGR of 10.54 per cent between FY12-FY19 to
reach Rs 3,384.63 crore (US$ 484.24 million). During the same period the imports of cement,
clinker and asbestos cement has stood at a CAGR of 7.99 per cent to US$ 158.49 million in
FY19. To enhance the source of capital for infrastructure financing, the Credit Guarantee
Enhancement Corporation for which the regulations have been notified by the RBI, will be set up
in the year 2019- 20.

The Government of India is strongly focused on the infrastructure development to boost the
economic growth and it is aiming for 100 smart cities in India. The government also intends to
expand the capacity of the railways in India and the facilities for handling and the storage to ease
the transportation of cement and reduce the transportation costs in India. These measures would
lead to the increased constructional activities thereby boosting the cement demands.
 Challenges facing the cement industry:

The cement industry will have to gear up to meet new challenges in the future, such as
upgrading its technologies for carbon capture and storage, SAILESH MOHTA,
PRESIDENT-MARKETING, WONDER CEMENT. There is a boots need for the cement
industry tp bring in new technologies and processes to achieve higher energy efficiency and
to drive sustainability. There are some challenges are there,

1) Cement Industry Analysis:

Many years of industry experience have a shown that the use of wastes as alternative fuels
by cement plants is both ecologically and economically justified.The traditional fuels used
in traditional kilns include coal, oil, petroleum coke, and natural gas. The substitution of
fossil fuels by alternative fuels in the production of cement clinker is of great importance
both for cement producers and for society, because it conserves fossil fuel reserves and, in
the case of biogenic wastes, reduces greenhouse gas emissions. In addition, the use of
alternative fuels can help to reduce the costs of cement production.

2) Cement Schematics:
Cement entrepreneurs have to face many challenges while setting up new cement manu-
facturing plants on greenfield sites. Emphasis on sustainable development is a new
dimension to consider while designing the plant. The cement industry is committed to
reducing the emission of Greenhouse Gasses (GHG) and to save limestone reserves and
fossil fuels, while simultaneously maintaining the quality of the ambient air. All new cement
plants are adopting green processes. This means they would be making blended/composite
cement, using alternate fuels, using waste gases to co-generate power or to even make
cement using renewable sources of power like wind and solar.

3) New dimension:
Though not mandatory now, the industry is expected to monitor emissions of greenhouse
gases. These stipulations are to be met by all proposed cement plants, green or gray. Since
the cement industry is committed to the principle of sustainable development, it will
willingly comply with these stipulations and do necessary planning in advance.

4) Green buildings
Norms have been developed for green buildings that make maximum use of sun and wind to
reduce dependence on lighting and air- conditioning. Though not mandatory, adopting them
would make the existing plants greener. The Bureau of Energy Efficiency has issued norms
for lighting fixtures and cooling media to be used in refrigerators and air-conditioners. It
would be best to keep these in mind right from the planning stage.
 5) Meeting these challenges
There are several real and tangible benefits of accepting the challenges and in greening
the cement plants. GHG emissions can be reduced from ~0.76 t/t for OPC to 0.30 t/t for
slag cement with Alternate Fuels (AF) and Waste Heat Recovery Systems (WHR).
Substantial savings can be achieved by conserving reserves of limestone and fossil fuels.
Capital costs of annual capacity can come down by 30 to 40 per cent even after allowing
for additional costs for AF and WHR. Costs of production of naked cement excluding
works also come down by 20 to 25 per cent in case of blended cements with AF and
WHR.

6) Renewable energy
Power plants based on renewable sources such as wind and solar power will soon become
an integral part of a new cement plant, making them greener as these sources of energy
are totally free of GHG emissions. The necessary technology to meet these goals is now
available and very reliable.
However, the main problem associated with these sources is that the generation of wind
and solar power is not consistent. The capacity factor is also very low compared to that of
thermal power plants. Secondly, it may not always be possible to locate wind or solar
power plants close to a cement plant. The plant would have to manage several sources of
electrical energy, grid, captive power plant, WHRS and power from renewable energy. A
sound strategy must be in place to ensure continuity of power at optimum cost.

7) Future challenges
The cement industry will have to gear up to meet new challenges in the future, such as
upgrading its technologies for carbon capture and storage. GHG emissions cannot be
pulled down to the targeted levels merely by making blended cement and by using AF.
There are technologies for separating CO2 from waste gases on the horizon. It could be
used by other industries or it can also be used for making new cement substitutes such as
those made by Calera Corporation. The main part of fuel consumption and consequently
CO2 generation takes place in the claimer and clinker forming kiln. The utilization of
low-carbon content fuel with high hydrogen-to-carbon (H/C) ratio instead of
conventional fossil fuels can remarkably diminish the rate of CO2 emissions in the
process. In addition to producing a smaller quantity of CO2, the use of alternative fuels
has been shown to improve refractory life and also reduce pressure drop in preheater
tower.The use of alternative fuels in cement plants also reduces emissions from landfills.
Therefore, it has been estimated that the utilization of this type of fuel will increase at the
rate of 1 per cent per year worldwide.
.
 CHAPTER:2 INTRODUCTION OF COMPANIES

INTRODUCTION TO AMBUJA CEMENT LIMITED

Ambuja Cements is a major cement producing company in India. The principal function of
Ambuja is to manufacture and market cement and clinker for domestic as well as export
markets. Ambuja cement has always been famous brand among other competitive brands in
cement industry.

The company has it's own five desegregated cement manufacturing plants and eight cement
grinding units. Ambuja is also the first indian cement manufacturer who has a captive port with
three terminals along the western coastline to facilitate timely easy, effective and cleaner
shipments to their customers all over the country.

HISTORY OF AMBUJA CEMENT.

In 1983 Ambuja Cement was founded by two traders NarotamSekhsaria and Suresh Neotia, two
traders who had very little knowledge in cement or it's manufacturing area. however their
farsightedness and Vision about cement as a product made them invest in a cement plant at
Gujarat. Formerly Ambuja Cement was known as Gujarat Ambuja Cement Limited.

In the year 1988-89 the company commissioned the 12.6 MW diesel-generating sets. later in the
year 1991 the company got necessary approvals for setting up another cement plant with 1
million tonne capacity per annum at Himachal Pradesh.
The company undertakes bulk cement transportation via sea to the established markets in
Mumbai Surat and other zones on the Western Coasts. in the year 1997 the company started
commercial production in Kodinar plant while by the year 2000 giants Larsen &Tubro (L&T)
and Gujarat Ambuja Cements entered an agreement to reduce transportation costs in dispatching
bulk cement in Gujarat. Ambuja cement was spreading over the country with great speed . By the
year 2002 the company started commercial production at Maratha Cement Works plant and
sooner than later in the same year they even started production in the new 2-million tonne
Greenfield cement plant at Chandrapur, Maharashtra.
In July 2005 Indo-Nippon Special Cements Ltd a subsidiary company and Ambuja cement was
amalgamated and In 2006 Global Cement Major Holcim acquired management control of the
company.

In 2007 Gujrat Ambuja cement limited changed their name to "Ambuja cement limited".

2009 - The Company launched its knowledge initiative known as Ambuja Knowledge Center,
to enable industry professionals get a first-hand feel of the world of cement and concrete. it had
three centers that became operational in the cities of Jaipur, Ahmedabad and Kolkata.
Year 2013 was a big year for Ambuja Cement as it won the Asia's Most Promising Brand &
Leader Award at the Asian Brand and Leadership Summit 2013 -ACL Rabriya was also awarded
with "Energy Efficient Unit" during the 14th National Award for Excellencein Energy
Management 2013.

This was history of the company and if last five years have been more or less great for the
company as well as industry as whole

today over 30 years the ambuja cement company has a strong footprint in all the regions of India.
the manufacturing units and cement grinding industries are located in areas that are
arestrategiclly easy to connect with more than 26000 dealers and retailers, who have helped the
company establish their brand even in remote areas and of India.

MISSION AND VISION:

VISION

 To be the most sustainable and competitive company in our industry.

MISSION

 To create value for all

 Delighted Customers

 Inspired Employees

 Enlightened Partners

 Energized Society

 Loyal Shareholders
 Healthy Environment
ORGANIZATION STRUCTURE
MILESTONES

 Since the very first cement plant company has set up a record time of building whole
plant in just two years.

 Ambuja cement has it's own knowledge centers. Today there are over 30 such knowledge
centers available across the country.

 Ambuja Cements Ltd. was ranked 5th globally in the Construction Material in cement
industry category in Dow Jones Sustainability Index 2018.

 Ambuja Cement has ranked 2nd in the global Carbon Disclosure Project (CDP)
fulfilling it's responsibility towards environment.

 Ambuja was among top 15 in Climate Governance & Strategy.

 Ambuja Cement won Occupational Hazard and Safety (OH&S) Management System.
OH&S Excellence Awards 2014, by achieving "zero harm" working environment

 Ambuja Cement has won „Commendation for Significant Achievement‟ in Sustainability

Awards 2018‟. Including 8 awards for Corporate Excellence, Environment Management
and CSR.

 India‟s top companies for Sustainability and CSR 2018 was awarded to Ambuja
cement. It ranked on 2nd position in Responsible Business Ranking.

 The prestigious „ICSI CSR Excellence was received by The Ambuja Cement Fundation

 Ambuja was Awarded as the Best Corporate in Large company Category by The
Institute of Company Secretaries of
 India (ICSI).

 "Ambuja‟s five mines namely, RKBA, Singsar, Sugala, Rawan, and Maratha ML-1
were rewarded with the 5-star rating at the 3rd National Conclave on Mines and
Minerals organized on 20th March, 2018 at New Delhi"

 The company has always believed on building a brand as a whole rather than just
selling a commodity to customers. And the Ambuja Giant, the company‟s brand
icon, it isn't just the symbol of the strength and power of their products but also their
true faith in spirit of "I Can"
PRODUCT PROFILE

Products of Ambuja cement

1) Ambuja roof special

We use cement to bind concrete in building. Ambuja Roof Special is a special quality PPC
cement, that has been specially designed by professionals that haa advanced SPE technology. It
helps yoextractsl 100% of silicate gel that is present in cement which helps in making the
concrete stronger, denser and leak proof, resulting in strengthening of the roof and strong
construction.
It is conducted to ensure proper cover to the reinforcement which results in long life of the slab.

2) Ambuja Cool walls

Ambuja came up with unique idea and technology that helps to keep wall cool
with Ambuja's temperature resistant concrete blocks, which can replace ordinary brick walls can
keep your walls of home cool as compared to normal bricks.
it has a heat barrier technology which could keep your home cooler by 5 degrees
The blocks are twice stronger and temperature resistant. Blocks are also better finished in terms
of looks so you could get more even and elegant construction.

3) Abuja cement Compocem

In the year 2017, Ambuja became the first cement company in the country to launch Portland
Composite Cement (PCC). The unique formula of the product was that it contained an optimum
combination of fly ash and slag – both are the waste products. This allowed the substitution of
natural materials.
It was the result of research and development of 18 months on quality of cements. Yet there was
a challenge, to create a unique cement that had lighter shade without compromising on strength.
And as a result they successfully launched a premium product, Compocem, in the eastern
markets of India.

4) AmbujaBuildcem

Ambuja has developed an innovative way of using fly ash to produce high strength Portland
Pozzolana Cement (PPC) and named it as AmbujaBuildcem which binds with other products to
build a strong and durable structures.
5) Ambujapowercem

Ordinary Portland cement is most common among customers and builders it has a basic
ingredient of concrete & mortar. Ambuja has branded it as Powercem

"Raw materials that is used in manufacturing of Powercem consist mainly of lime, silca, alumina
and iron oxide. Ambuja OPC meets all applicable Chemical & Physical requirements as per the
IS specifications IS 269:2015. AmbujaPowercem is available in grades 43 & 53 in Bag & Bulk."

6) AmbujaRailcem

AmbujaRailcem is a high Blaine Portland cement, that is useful in constructions of concrete

Railway sleepers. Apart from its main use, it can also be used in pre- stressed concrete elements.
many other Global Cement manufacturers have a significant share in Ambuja cement.

SWOT ANALYSIS

Strengths, Weaknesses, Opportunities & Threats (SWOT)

complete Analysis about Ambuja Cements.

Strengths are as follows

1. It has more than 30 years of experience in cement industry and thus has made it's own
prominent identity.

2. It's the leading cement manufacturers

India and easily available even in remote areas of the country.

3. on yearly basis it successfully earns a huge revenue.

4. Holcim, as one among the world‟s largest cement manufacturers has a their shares in Ambuja
Cement limited

5. due to it's powerful branding and marketing via tv advertising and dealers it successfully
marks it's footprints all over the country.

6. Ambuja Cement is not completely dependent on government for coal and power

Opportunities are as follows:

1. Ambuja cements has been planning to buy share from Holcim. which would strengthen the
brand to grow in India and it would also strength the economy of country.
2. As per their history amuja cement is also capable to increase its global exports business
through mergers and acquisitions.

3. The government is planning to promot Manufacturing sector in India which would prove as a
huge opportunity for Ambuja cements and other manufacturing companies.

4. Their new product RMC i.e. ready mix concrete would be in great demand

Threats are as follows:.

1. over the period the competition in cement industry has increased and Ambuja is facing strong
competition from other brands and Global players of cement industry.

2. As government changes the policy and rules it is always a threat to the company, so company
has to ready with alternatives different policies that might hamper

3. change in technology and idea of constructions with products that are more reliable in foreign
country and cost effective can be a major threat.

Weaknesses

Weaknesses are as follows:

1. Export of the company is limited to the boundaries of country and very few foreign countries
which makes is less compatible in global market.

2. ambuja does provide a variety of products but it's services are very limited as per the demand
of the new customers and builders.

3) Fails to deal in wholesale markets and global market at some extent too
 INTRODUTION TO JK LAKSHMI CEMENT

HISTORY:

JK Lakshmi Cement (JKLC) Ltd was incorporated on 6th August 1938 in the State of
Rajasthan. The Company's plant is situated at Jaykaypuram District of Sirohi Rajasthan having
an annual capacity of 12 million tonnes.

The Company manufactures and sales Cement Clinker and concrete products like RMC and
AAC Blocks. The Company has its manufacturing plants located in two different markets
namely East comprising the states of Chhattisgarh Odisha Eastern & Central MP and Vidarbha
region in Maharashtra, and North West that mainly comprises Rajasthan, Gujarat, Haryana,
Delhi, Punjab, Western UP, Western MP and some parts of Maharashtra bordering Gujarat.

During the year 1993-94 the company had received an ISO 9002 certificate. The Company
name was changed to J.K Corp Limited from Straw Products Ltd in 24th February of the
year 1995 and also in the same year entered into Multi Product Corporation Manufacturing
Paper Cement and Magnetic Tape.

In the year 1998 the company introduced a new brand Lakshmi Chattan.

The Company during the year has bagged the prestigious Greentech Safety Award 2003-04 for
Safety and Environment from the Greentech Foundation and the Golden Peacock National
Award for Environment Management System from the World Environment Foundation.

During the year 2004-2005 the company had exited from Magnetic Tape business and in the
same year the company changed its brand name from Lakshmi Cement into JK Lakshmi
Cement.
The Company's Scheme of de-merging its Investment Division to another company had been
completed in the year 2005-06. The Scheme of Reconstruction Arrangement and Demerger
between JKLC and Ashim Investment Company Limited (AICL) had become effective from
31st March of the year 2006.

MISSION AND VISION:

Vision:

 To be a profitably growing, innovative & caring Company.

 To become a significantly relevant player in the mind of consumers.

 Mission:

 Achieve growth in Sales & Profit, higher than comparable sized players
 Achieve Operational Excellence.
 Be a workplace of choice-Attract, Retain and Grow Talent Pool of change leaders.
 Create superior value for the customer through Premium Products & Brand Positioning.
 Continuously enhance shareholders' wealth and be a preferred portfolio among investors.
 Be a Socially Responsible Corporate Citizen.

 Core values:

 Caring for people.

 Integrity including intellectual honesty, openness, fairness & trust
 Commitment to excellence.
  ORGANIZATION STRUCTURE:

MILESTONES:

 An unquestionable legacy of ethics, constant zeal to innovate and a propensity to outdo

themselves has helped them to cross milestones after milestones.

 Another milestone in the history of JK Lakshmi Cement was attained in the month March
15, when they commenced the commercial production from their new Greenfield
integrated cement plant at Durg in Chhattisgarh, which is the gateway for the markets of
Eastern part of India.

 The new plant in Durg is a technological marvel and is fully laden with internationally
acclaimed latest process and quality assurance systems and best environment-friendly
practices.

 Spread over 1200 acres, the plant has been setup at a cost of over Rs.1700 crores. With
future construction plant of a split grinding unit at Cuttack (Odisha), the plant is slated to
reach its peak capacity of nearly 3 MTPA.

 In its journey to a mazboo India, JK Lakshmi Cement recently achieved another

milestone. The Company's grinding unit was formally inaugurated in Jharli, Haryana.

 The grinding unit with a capacity of 5.5 lakh tonnes is spread on an area of 21 acre. The
plant aims at meeting the growing need of quality products and timely delivery of cement
in the state and the neighbouring areas.

 The unit is eco-friendly that aims at conserving the scarce natural resources. The
Company with its new unit has also introduced specially designed customised packaging
options to meet the rising demands of the discerning consumers.

 This unit is the nearest cement manufacturing facility to Delhi-NCR region which would
prove to be a boon for the consumers and the supplier network.
PRODUCT PROFILE:

JK Lakshmi Cement comes in three variants:

1) JK Lakshmi Cement PPC (Blended):
It has a minimum guaranteed strength of 48 MPa, and is used for critical applications that require
the maximum level of strength and durability.

2) JK Lakshmi Cement PPC (Blended): Ideal for the following applications

All Types of R.C.C. Work, Plastering, Underground structures, Dams, Heavy machinery
foundations, Marine structures, Hydropower stations.

3) OPC 53 Grade Cement:

While the chief chemical constituents of ordinary Portland Cement (OPC) are Calcium, Silica,
Alumina and Iron, cement manufacturers continuously research and make efforts to further
strengthen and improve the quality and other features of this particular type of cement. At JK
Lakshmi Cement, we offer the 53 Grade OPC Cement which gives even higher cement strength
to match the rising demands of higher strength building material in the urban world.

4) 53 Grade OPC Cement: Ideal for the following applications

High-rise buildings, all types of R.C.C. works, Industrial works, Pre-stressed concrete work like
bridges, silos, etc., Pre-cast elements such as Railway sleepers and concrete poles.

5) 43 GRADE OPC:
JK Lakshmi's 43 Grade O.P.C., another premium product from JK Lakshmi's award winning
manufacturing facility at Sirohi, Rajasthan.

6) JK Lakshmi's 43 Grade O.P.C.: Ideal for the following applications

Commercial Buildings, Industrial Constructions, Multi-storeyed complexes, Cement
concrete roads, Heavy Duty Floors.

SWOT ANALYSIS:
Strength:
1. JK Cements has an functional experience of over Three decades.
2. It has an installed grey cement capacity of 7.5 MTPA.
3. The company is one of largest producer of cement in the county with 4,00,000 tons
of capacity.
4. It is also one of the largest producer of Wall Putty with a capacity of 3,00,000 tons.
5. It is the first company to install waste heat recovery plant to take care of need of green power.
6. Company has a capacitive power generation capacity of over 100 Mws.

Weaknesses:
1. It has major operations in Rajasthan and Karnataka only.
2. Moreover, the brand awareness pan India is very less when compared to national players in the
country.

Opportunities:1. It should expand its operations to other parts of the country.

2. Government policies would also help the company to grow in the country.
3. It can enter into untapped markets.
4. Real Estate sector is in a boom in India, so it‟s a huge opportunity for players like JK
Cements to leverage upon.

Threats:
The threats in the SWOT Analysis of JK Cement are as mentioned:
1. It would face strong competition from regional players when it tries to enter new markets.
2. Many major cement players are doing aggressive marketing and branding activities that might
impact JK cement operations.
3. Increasing cost of operations and fluctuating construction business scenario.
 CHAPTER:3 ECONOMICS FOR MANAGERS
Company Profile

JK Lakshmi Cement is a well-renowned name in the cement industry in India. JK Lakshmi

Cement Limited is a part of the 125 years old JK Organization. An eminent industrial house,
with operations in India and abroad and having a leadership presence in the fields of tire,
cement, paper, power transmissions and sealing solutions, dairy products and textile. JK
Lakshmi Cement (JKLC) was set up in 1982– in a village in District Sirohi, Rajasthan. Today,
the company stands tall with an annual turnover of about Rs. 2700 Corers and an impressive
production of 8.3 million tones per annum.
JK Lakshmi Cement is the strength behind structures that India is proud of – Indra Gandhi
NaharPariyojna, SardarSarovar Project, Golden Quadrilateral ,Mundra and Kandla Port stands to
name a few. It partners India‟s leading corporations such as L&T, Reliance, NTPC andEssar to
create the new India‟s success story. It is the brand choice across all section of customers such as
housing projects, roads and bridges , airports , factories and as well as the individual house
builder (IHB). Behind these numbers and achievements lies a story of grit, perseveranceh and a
thirst to excel through innovations in products ,using world-class technology , excellence in
manufacturing by being the least cost producer , a robust marketing and distribution network ;
and the heart to give the society an opportunity to grow.

Building better products through better technology :

The true spirit of a leader lies in constant innovation and not resting on one‟s laurels. JK
Lakshmi Cement proves it with “JK Lakshmi Pro+ Cement” in an all new avatar. A cement
with 7+ astounding benefits in terms of strength, durability, finish, setting speed, quality
assurance, service and economy.
Today, JK Lakshmi Pro+ Cement is the talk of the town by being the best-in-class product
and has become the first choice among customers. Dealers across India have shown an
unprecedented enthusiasm and excitement towards this product.
JK Lakshmi Cement‟s felt that traditional red bricks needed to evolve. Hence, it came up
with JK Smart Blox – Autoclaved Aerated Concrete Blocks. A green product- it replaces
traditional bricks , which uses cultivable top-soil and also consumes very high energy during its
manufacturing process. JK Smart Blox is manufactured using fly ash, a waste product and is
manufactured using world-class German Technology. They weigh less, are larger than traditional
bricks and easy to work, with their unique tongue and groove feature. JK SmartBlox is also
environment friendly as it offers better insulation allowing substantial energy saving.
The further firsts in JK Lakshmi Cement‟s innovative ideas basket were:
The concept of coloured bags for product differentiation .

In North India, JK Lakshmi Cement was among the first ISO:9002 certified cement plants. Did
you know JK Lakshmi Cement is the first company to utilize 99 per cent of its production
capacity? It just shows how well the nation has taken to its products and remains hungry for
more. JK Lakshmi Cement leaves no stone unturned when it comes to embracing the latest
technologies. Each JK Lakshmi Cement plant uses state-of-the-art world class technology and
the best equipment. This quest to keep up with the best technologies has won
JK Lakshmi Cement several awards like :
The Greentech Safety Award
The Excellent Energy Efficiency Unit Award

Data Analysis & Interpretation

ACC cement has the huge presence in the market with 16 authorized dealers which is almost
17.8 % of the total dealers / retailers present in the market , followed by Ultratech , Ambuja ,
Shree cement with 12 authorized dealers which is 13.3 % of the total . JK Lakshmi Cement
comes 5th with 4 dealers in the city and 3 in the adjacent areas which is 7.8 % .

31% of
the total dealers think ultratech cement has grip over the market so, is the most

competitive brand. With 23.3% of the total dealers ACC and Ambuja cement is the second
largest competitor into the market . 4.4 % of the dealers thinks that Lafarge cement has a
presence in the market.

65.6 % of the total outlets are Cement Cum Building material outlets . 20 % of
the outlets are solely Cement outlets.
11.1% of the outlets are Cement Cum Hardware stores.
3% of the total outlets are Cement CumPaint stores.

PPC is the usually saleable product by all the companies . But according to the study there is a
market for premium products although demand will not encourage
Price is the major player in the market,
- with 44% thinks that the price is affecting the sales over the years.
- 31.1 % goes with the brand name .
- 14.4 % goes with the convenience .
- 10 % goes with the quality .

54.4 % of the total response having less than 25 % of the sale based on quality and strength .
only 6.7% says their more than 75 % sales are based on the type of Quality .
The above graph shows the sales volume of cement for a month. Among all ACC is in the top
ranking in sales volume with about 4500 MT. BANGUR has the lowest sales volume of about
500 MT. The above graph also shows the sales volume of JK LAKSHMI of around 1000 MT.
The main competitor of JK Lakshmi is JAYPEE as it slightly above it. JK Lakshmi Cement
seventh in the overall market. JK Lakshmi is higher the JK SUPER and Bangur.

45.6 % are very confident about sale of the cement in the future , 37.8 % are confident about the
demand of the cement and 16.7% are not confident about the growth of the sale of cement
 75
dealers are confident about the future growth because of the following reasons – 38
dealers says the reason is brand preference .
23 dealers says because of personal relations .
14 dealers says because of upcoming projects .
15 dealers are not confident about the sale in the future , following are the reasons – 11
dealers says because of the low demand in the market .
4 dealers says because of the lack of support from the company , they are not confident.

53.3 % cash based motivation

6.7 % non – cash motivation
36.7 % both cash and non – cash motivation
From the study there no such a huge market for premium cement but if convinced they may
payupto 5% – 7% .
Few of the dealers ( 30%) says customer may pay upto 10% .

77.8 % of the total responses says that they know about ACC
– GOLD .
60 % of the responses says that they are aware of JK Lakshmi PRO PLUS . 42.2
% of the total responses says that they are aware of ACC - CONCRETE
As we can see price fluctuation is the major problem and after that next big problem is -
Demand fluctuation and competition.

Ambuja Cement Company

Ambuja Cement (ACL): Leading cement company in India :

 Pan India footprint with consolidated cement capacity of 63 mntones.

 Attractive geographical positioning.

 Market leading brands with large network of dealers/retailers (trade sales >80% of total
 volume).

 Strong balance sheet with consolidated net cash in excess of INR 51 bn.
Ambuja‟s- Strategies in place to enhance value

 Q1‟19 cement capacity utilization at 86.6%.

 Focus on Master Supply Agreement to unlock synergies in the areas of sales &
marketing and logistics.

 The addition of 4.6 mntonnes of cement volumes from Greenfield integrated cement
plant at MarwarMundwa, Rajasthan will further strengthen our position in core
markets of North and Gujarat. To be operational in Q3 2020

 .Commercial transformation: New and innovative premium product launches,

focus on customer excellence and on margin management levers.

Ambuja Cements Ltd. is one of the leading cement companies in India. It is part of the
LafargeHolcim Group, the world leader in the building materials industry, with a presence in 80
countries, and a focus on cement, aggregate and concrete since 2006. For three decades, Ambuja
Cements has provided hassle-free home building solutions with its unique sustainable
development projects and environment-friendly practices.

 To continue to optimize cost structure: Optimisation of fuel including alternative fuel

journey, reduction in lead distance and savings in fixed overheads.
Infrastructure & Housing program drove cement demand to 9.1% in 2018;
projected to grow by 7.0%- 8.0% in 2019

 In Jan-Mar‟ 2019 demand is expected to remain firm between 7.5% to 8.5% due to
accelerated pre-election spending & faster execution of government sponsored housing
& infrastructure
 projects.

 Election process in Apr-Jun‟19 and Monsoon in JulSep‟19 may slowdown the cement
demand growth momentum on the back of subdued construction activities

 During Oct-Dec‟19, we expect demand growth to improve with new Government in

place; All the ongoing infrastructure/construction projects most likely would continue
and the new Government may also initiate new demand drivers/projects that would
further boost cement demand.

 Overall demand in 2019 is estimated to grow in the range of~7.0% - 8.0%.

 Brand Architecture
  Highest ever Cement Sales in Q1 series, resulting in Top Line growth of 3%.
Capacity utilization improvement by 1.6 pp.

 EBITDA impacted due to heavy cost increases but mitigation measures helped
partially to overcome cost increase
 for the quarter.
 Profit after Tax up by 57%.

Cement Sales Volumes(MnTonnes)

-o-y (PY 6.22

mntonnes)

Net Sales
rising trend
(Rs. Crore)

launched recently have

seen a double digit growth in January – March 19 over the previous quarter.
~14% y-o-y basis.
 CHAPTER: 3.2 MANAGERIAL COMMUNICATION

Study Of Formal Communication Channel

In a corporation, info flows forward, backwards and sideways. This flow of information is
called communication. Communication channels talk over with the approach this info flows at
intervals the organization.

In this net referred to as communication, a manager becomes a link. Instructions or choices flow
upwards, downwards or sideways, depending on the position of the manager in the
communication web. For example, a report from a lower-level manager will flow upwards to
upper-level managers or directors. This upward flow of data is face-to-face conversations, emails
or interdepartmental memos.

A breakdown within the communication ends up in Associate in nursing inefficient flow in info.
For example, if employees are unaware of what the organization expects of them, this could
cause employees to become suspicious of motives and changes in the company. This could
negatively affect productivity in the workplace. If productivity decreases, eventually this will
harm the organization as a whole.

Therefore, in order for an organization to run well, a good manager should be able to effectively
communicate to employees what is expected of them, make sure they are fully aware of
company policies and inform them of any coming changes. This should facilitate to optimize
worker productivity and make sure that the organization runs swimmingly.

A breakdown in the communication channel leads to an inefficient flow in information. For

example, if employees are unaware of what the organization expects of them, this could cause
employees to become suspicious of motives and changes in the company. This could
negatively affect productivity in the workplace. If productivity decreases, eventually this will
harm the organization as a whole.
Therefore, in order for an organization to run well, a good manager should be able to effectively
communicate to employees what is expected of them, make sure they are fully aware of company
policies and inform them of any upcoming changes. This should help to optimize employee
productivity and ensure that the organization runs smoothly.

Type of Formal Communication Channel:

Downward Communication:

The downward communication is once the data passes from the management level to the
subordinate level. This is the foremost common style of formal communication whereby
communication flows down, i.e. from the individuals occupying prime positions within the
organization to the individuals at lower levels.
It primarily includes orders and directions and might either be written or oral reckoning on the
importance of the message and conjointly the standing of people concerned within the
communication method. Reports, emails, letters, manuals, etc. are the commonly used
communication tools.

Upward Communication:

The upward communication is once the message passes from the subordinate level to the
management level. Here, the communication flows upwards i.e. from the subordinates to the
managers in the form of request, reports, suggestions, complaints, and instructions.

Horizontal or Lateral Communication:

Horizontal communication means when the Co-workers with different areas of responsibilities,
but at the same level in the organization communicate with each other. The communication
between the managers of a special department, such as marketing, finance, production, HR, is the
best example of horizontal communication.
Diagonal or Crosswise Communication:

Once the staff totally different departments at different levels communicate with one another no
matter the chain of command, then the communication is said to be a diagonal or a cross-wise
communication. The communication between the ground manager and also the sales team is that
the example of diagonal communication.

STUDY OF INFORMAL COMMUNICATION CHANNEL

Informal communication at work is any style of communication that doesn‟t manifest itself
victimization the formal ways or structures during a company. It will be spoken, written or
maybe sent through gestures and visual communication.

There are four different types of informal communication:

 Single Strand: One person communicates with one person and then they go and
communicate with another one person. Communication is traveling from one person to a
different one person.
 Gossip Chain: Group conversation where everyone is talking to each other informally.
 Probability Chain: Each individual randomly tells another individual the same message.
 Cluster Chain: One person shares information with a group of selected individuals and in
turn each of those individuals shares that information with others.

How the grapevine work

The informal communication network that exists in a workplace is often termed “the grapevine”.
This is once colleagues chat or gossip concerning what‟s happening within the company. The
grapevine is an unofficial channel of communication. Although it doesn‟t have a proper
structure, it is still very effective at conveying information. Communications move altogether
totally different directions consistent with that staff understand one another well, whether or not
they move with one another socially or as a part of their jobs. It isn‟t restricted to following
the typical hierarchical flows of information, such as up and down the chain of command.
Due to the interconnected network structure of the grapevine, data flows quickly between
people and may chop-chop unfold across associate organisation.
When news or data travels through the grapevine, it is more than just the typical daily dialogues
between employees. Sometimes the information is simple and harmless. For example, “Did you
hear that Susan in Accounts is obtaining married?” is news that may be cheerfully unfold across
a corporation.
But it‟s when more damaging or confidential information is shared that the grapevine can
become destructive and negative. It can fuel rumours and lead to misunderstandings. If
somebody gets wind of some gossip or necessary news concerning the business, then the word
chop-chop starts to unfold. It may well be that there square measure some approaching
business changes. For example, “Have you heard they‟re going to be making redundancies?”
isn‟t such great news and you may not want that to reach everyone like you might the news
about Susan‟s impending marriage.

Informal Communication Advantages and Disadvantages:

Informal communication is casual and carefree whereas formal communication will appear cold
and distant. Both these varieties of communication square measure necessary for the
geographical point, but informal communication is beneficial because it can bridge gaps
between departments and create a sense of belonging. Informal communication is friendly and
alluring and could be a nice sign that somebody incorporates a friend within the company.
Informal communication is a plus to business as a result of if staff have friends to speak with
they're going to fancy their job a lot of, which can increase productivity. A disadvantage to
informal communication is simply that, it‟s informal. Unofficial or unofficial data will be unfold
to staff, leading to mass disinformation. A great profit to informal communication is that staff
have somebody to travel to once they don‟t perceive a facet of the business. It is an excellent
manner for workers to feel connected and to stay abreast with however the business works.

How Communication Takes Place Between People Belonging To Different

Hierarchy

“An organization in which power and responsibility are clearly specified and allocated to
individuals according to their standing or position in the hierarchy,” defines Westburn Publishers
Ltd. Ranked employees exist at different levels, one reporting to the other. The basic hierarchy
structure looks like a pyramid: each level is in charge of the levels below and reports to the levels
above. Organizations with many layers describe a tall hierarchy while those with only a few
follow the flat model.

Span of control defines the number of people who report to a single manager: the fewer the
people, the smaller the span of control. Tall organizations have a large number of managers, each
with a small number of people reporting to them resulting in a narrow span of control. Flat
hierarchies give a small number of managers a wide span of control over many employees. In a
general pyramid shaped structure, the span of control gets wider, the farther you move from top
management.

This traditional structure clearly defines each employee's duties and his relationship with other
personnel. The line that gives orders and makes decisions follow from top to bottom is called the
chain of command. “In a hierarchy the chain of command means that a production manager may
be way up in the hierarchy, but will not be able to tell a marketing person what to do,” reports
Tutor2u. Insulating each level from those below and above prevents job function crossover,
making them strong levels.

This is how communication takes place between people belonging to different hierarchy in
Ambuja Cement and JK Lakshmi Cement.
 What Sort Of Communication Channel They Follow
In ambuja cement company follows formal communication channels as well as
informal communication channel. They believe in motivating workers by their
methods of communication.
JK Lakshmi cement is stone believer of barrier less communication system. They use
many different types of communication channels as needed. They also use technology as
a mean of communication in their company.

Here are few communication channels which are mainly used in an organization:

1. Face-to-Face or Personal Communication:

Face-to-face or personal communication is one amongst the richest channels of

communication that may be used inside a company. Physical presence, the tone of the
speaker's voice and facial expressions help recipients of a message interpret that message
as the speaker intends. This is the simplest channel to use for advanced or showing
emotion charged messages, because it allows for interaction between speaker and
recipients to clarify ambiguity. A speaker can evaluate whether an audience has received
his message as intended and ask or answer follow-up questions.

2. Mobile Communications Channels:

A mobile line ought to be used once a non-public or additional advanced message must
be relayed to a personal or little cluster. A mobile channel permits for Associate in
nursing interactive exchange and provides the recipient the additional benefit of decoding
the speaker's tone together with the message. Some inside a company might choose to use
this channel versus a face-to-face channel to avoid wasting on the time and energy it'd
fancy coordinate a face-to-face meeting.

3. Electronic Communications Channels:

Electronic communication channels comprehend email, Internet, intranet and social

media platforms. This channel is used for one-on-one, cluster or mass communication.
It is a less personal technique of communication however additional economical. When
mistreatment of this channel, care must be taken to craft messages with clarity and to
avoid the use of sarcasm unless the message specifically calls for it.

4. Written Methods of Communication:

Written communication ought to be used once a message that doesn't need
interaction must be communicated to Associate in Nursing worker or cluster.
Policies, letters, memos, manuals, notices and announcements are all messages.
Types Of Communication And Process Of It
Types of communication
1. Verbal Communication
2. Nonverbal Communication

Verbal Communication:

Verbal communication refers to the the shape of communication within which message is
transmitted verbally; communication is completed by word of mouth and a chunk of
writing. Objective of each communication is to own folks perceive what we tend to are
attempting to convey.

When we talk over with others, we tend to assume that others perceive what we tend to ar
spoken language as a result of we all know what we tend to ar spoken language. But this
is not the case. Usually folks bring their own angle, perception, emotions and thoughts
concerning the subject and therefore creates barrier in delivering the proper that means.

So so as to deliver the proper message, you want to place yourself on the opposite aspect
of the table and suppose from your receiver‟s purpose of read. Would he understand the
message? how it might sound on the opposite aspect of the table?

Verbal Communication is further divided into:

1. Oral Communication
2. Written Communication

Oral Communication:
In oral communication, Spoken words are used. It includes face-to-face conversations, speech,
telecommunication oral communication, video, radio, television, voice over internet. In spoken
communication, communication is influence by pitch, volume, speed and clarity of speaking.

:
Advantages Of Oral Communication

It brings quick feedback

In a face-to-face oral communication, by reading face expression and visual communication one
will guess whether or not he/she ought to trust what‟s being same or not.
Disadvantage of oral communication:
In face-to-face discussion, user is unable to deeply have confidence what he's delivering, so this
can be counted as a written communication:

In communication, written signs or symbols ar accustomed communicate. A written message

could also be written or hand written. In communication message is transmitted via email, letter,
report, memo etc. Message, in communication, is influenced by the vocabulary used, genre,
exactness and clarity of the language used.
Written Communication is most typical sort of communication being employed in business. So,
it is considered core among business skills.
Memos, reports, bulletins, job descriptions, worker manuals, and piece of email ar the kinds of
communication used for internal communication. For act with external setting in writing, piece
of email, net internet sites, letters, proposals, telegrams, faxes, postcards, contracts,
advertisements, brochures, and news releases are used.

Advantages Of Written Communication:

Messages is emended and revised several time before it's truly sent.
Written communication give record for each message sent and may be saved for later study.
A written message allows receiver to completely are aware of it and send applicable feedback.
Disadvantages of written communication:
Unlike spoken communication, communication doesn‟t bring instant feedback.
It take longer in composing a written message as compared to spoken. and number of people
struggles for writing ability.

Nonverbal Communication:
Nonverbal communication is that the causation or receiving of tongue less messages. We can say
that communication aside from oral and written, like gesture, visual communication, posture,
tone of voice or facial expressions, is named nonverbal communication. Nonverbal
communication is all concerning the visual communication of speaker.
Nonverbal communication helps receiver in decoding the message received. Often, nonverbal
signals reflects matters a lot of accurately than verbal messages. Sometimes nonverbal response
contradicts verbal communication and therefore have an effect on the effectiveness of message.
Nonverbal communication have the following three elements:
Appearance
Speaker: clothing, hairstyle, neatness, use of cosmetics
Surrounding: room size, lighting, decorations, furnishings
Body Language
Facial expressions, gestures, postures
Sounds
Voice Tone, Volume, and Speech rate

Types of Communication:
1. Formal Communication
2. Informal Communication

Formal Communication:
In formal communication, sure rules, conventions and principles ar followed whereas act
message. Formal communication occurs in formal and official style. Usually skilled settings,
company conferences, conferences undergoes in formal pattern.
In formal communication, use of slang and foul language is avoided and proper pronunciation is
needed. Authority lines ar required to be followed in formal communication.

Informal Communication:
Informal communication is completed exploitation channels that ar in distinction with formal
communication channels. It‟s just a casual talk. It is established for social group affiliations of
members in a corporation and face-to-face discussions. It happens among friends and family. In
informal communication use of slang words, foul language isn't restricted. Usually. Informal
communication is done orally and using gestures.
Informal communication, in contrast to formal communication, doesn‟t follow authority lines. In
a corporation, it helps to find out workers grievances as folks specific a lot of once talking
informally. Informal communication helps in building relationships.

Communications Process:
Communications may be a continuous method that primarily involves 3 parts viz. sender,
message, and receiver. The elements concerned within the communication method are explained
below in detail:

1. Sender

The sender or the human generates the message and conveys it to the receiver. He is the source
and the one who starts the communication

2. Message

It is the thought, information, view, fact, feeling, etc. that is generated by the sender and is then
supposed to be communicated additional.

3. Encoding

The message generated by the sender is encoded symbolically like within the sort of words,
pictures, gestures, etc. before it is being conveyed.

4. Media

It is the way within which the encoded message is transmitted. The message could also be
transmitted orally or in writing. The medium of communication includes phone, internet, post,
fax, e-mail, etc. The choice of medium is set by the sender.

5. Decoding
It is the method of changing the symbols encoded by the sender. After coding the message is
received by the receiver.

6. Receiver

He is the one who is last within the chain and for whom the message was sent by the sender.
Once the receiver receives the message and understands it in correct perspective and acts in step
with the message, solely then the aim of communication is victorious.
 CHAPTER:3.3 MANAGEMENT INFORMATION SYSTEM

Analyse how MIS impacts of home in terms of value creation and strategic
management
MIS is a collection of systems, hardware, procedures and people that all work together to
process, store, and produce information that is useful to the organization.

IMPACT OF THE MANAGEMENT INFORMATION SYSTEM

MIS plays a very important role in the organization; it creates an impact on the organization‟s
functions, performance and productivity.

The impact of MIS on the functions is in its management with a good MIS supports the
management of marketing, finance, production and personnel becomes more efficient. The
tracking and monitoring of the functional targets becomes easy. The functional managers are
informed about the progress, achievements and shortfalls in the activity and the targets. The
manager is kept alert by providing certain information indicating and probable trends in the
various aspects of business. This helps in forecasting and long-term perspective planning. The
manager‟s attention is bought to a situation which is expected in nature, inducing him to take an
action or a decision in the matter. Disciplined information reporting system creates structure
database and a knowledge base for all the people in the organization. The information is
available in such a form that it can be used straight away by blending and analysis, saving the
manager‟s valuable time.

The MIS creates another impact in the organization which relates to the understanding of the
business itself. The MIS begins with the definition of data, entity and its attributes. It uses a
dictionary of data, entity and attributes, respectively, designed for information generation in the
organization. Since all the information systems use the dictionary, there is common
understanding of terms and terminology in the organization bringing clarity in the
communication and a similar understanding of an event in the organization.

The MIS calls for a systematization of the business operations for an effective system design.
This leads to streaming of the operations which complicates the system design. It improves the
administration of the business by bringing a discipline in its operations as everybody is required
to follow and use systems and procedures. This process brings a high degree of professionalism
in the business operations.

The goals and objectives of the MIS are the products of business goals and objectives. It helps
indirectly to pull the entire organization in one direction towards the corporate goals and
objectives by providing the relevant information to the organization.

A well designed system with a focus on the manager makes an impact on the managerial
efficiency. The fund of information motivates an enlightened manager to use a variety of tools of
the management. It helps him to resort to such exercises as experimentation and modeling. The
use of computers enables him to use the tools and techniques which are impossible to use
manually. The ready-made packages make this task simple. The impact is on the managerial
ability to perform. It improves decision-making ability considerably high.

Since, the MIS work on the basic system such as transaction processing and database, the
drudgery of the clerical work is transferred to the computerized system, relieving the human
mind for better work. It will be observed that lot of manpower is engaged in this activity in the
organization. Seventy (70) percent of the time is spent in recording, searching, processing and
communicating. This MIS has a direct impact on this overhead. It creates information –based
working culture in the organization.

Low-cost leadership: Use information systems to achieve the lowest operational costs and
thelowest prices. For example, a supply chain management system can incorporate an
efficientcustomer response system to directly link consumer behavior to distribution and
production andsupply chains, helping lower inventory and distribution costs.

Product differentiation: Use information systems to enable new products and services,
orgreatly change the customer convenience in using your existing products and services. For
instance, Land's End uses mass customization, offering individually tailored products or
services using the same production resources as mass production, to custom-tailor clothing to
individual customer specifications.

Focus on market niche: Use information systems to enable a specific market focus and servethis
narrow target market better than competitors. Information systems support this strategy by
producing and analyzing data for finely tuned sales and marketing techniques. Hilton Hotels uses
a customer information system with detailed data about active guests to provide tailored services
and reward profitable customers with extra privileges and attention.

Strengthen customer and supplier intimacy: Use information systems to tighten linkages
withsuppliers and develop intimacy with customers. Chrysler Corporation uses information
systems to facilitate direct access from suppliers to production schedules, and even permits
suppliers to decide how and when to ship suppliers to Chrysler factories. This allows suppliers
more lead time in producing goods. Strong linkages to customers and suppliers increase
switching
costs (the cost of switching from one product to a competing product) and loyalty to your firm.

The Internet has nearly destroyed some industries and has severely threatened more. The Internet
has also created entirely new markets and formed the basis for thousands of new businesses.

Because of the Internet, the traditional competitive forces are still at work, but competitive
rivalry has become much more intense. Internet technology is based on universal standards,
making it easy for rivals to compete on price alone and for new competitors to enter the market.
Because information is available to everyone, the Internet raises the bargaining power of
customers, who can quickly find the lowest-cost provider on the Web. Some industries, such as
the travel industry and the financial services industry, have been more impacted than others.
Role of MIS achieving competitive business advantage to better decision making

The role of the MIS in an organization can be compared to the role of heart in the body. The
information is the blood and MIS is the heart. In the body the heart plays the role of supplying
pure blood to all the elements of the body including the brain. The heart work faster and supplies
more blood when needed. It regulates and controls the incoming impure blood, processed it and
sends it to the destination in the quantity needed. It fulfills the needs of blood supply to human
body in normal course and also in crisis.

The MIS plays exactly the same role in the organization. The system ensures that an appropriate
data is collected from the various sources, processed and send further to all the needy
destinations. The system is expected to fulfill the information needs of an individual, a group of
individuals, the management functionaries: the managers and top management.

Here are some of the important roles of the MIS:

 The MIS satisfies the diverse needs through variety of systems such as query system, analysis
system, modeling system and decision support system.

 The MIS helps in strategic planning, management control, operational control and transaction
processing. The MIS helps in the clerical personal in the transaction processing and answers the
queries on the data pertaining to the transaction, the status of a particular record and reference on
a variety of documents.

 The MIS helps the junior management personnel by providing the operational data for
planning, scheduling and control , and helps them further in decision-making at the operation
level to correct an out of control situation.

 The MIS helps the middle management in short term planning, target setting and controlling
the business functions. It is supported by the use of the management tools of planning and
control.

 The MIS helps the top level management in goal setting, strategic planning and evolving the
business plans and their implementation.

 The MIS plays the role of information generation, communication, problem identification and
helps in the process of decision-making. The MIS, therefore, plays a vital role in the
management, administration and operation of an organization.
 Chapter:3.4 ORGANIZATIONAL BEHAVIOUR

Introduction

Goal setting involves the development of an action plan which is designed

to motivate and guide a person or group towards a goal. Goal setting should be guided by goal-
setting criterias or rules such as SMART criteria. Goal setting is the major component
of personal-development and management literature.

The theory of goal setting states that the simplest most direct motivational explanation of why
some people perform better than others is because they have different performance goals.

Ambuja Cement

1. SETTING UP A CLEAR VISION AND MISSION

Ambuja cement has a clear vision to be the most sustainable and competitive company in the
cement industry. It sets up a mission to create value for all the

o Delighted Customers
o Inspired Employees
o Enlightened Partners
o Energized Society
o Loyal Shareholders
o Healthy Environment

1. UPHOLDING A LEGACY OF TOP QUALITY CEMENT

Besides the strength, bag-to-bag consistency is the assay mark of Ambuja Cement. It‟s
perhaps why Ambuja Cement is the most preferred choice of the entire spectrum of
consumers from worldly-wise infrastructure projects to high rise structures and small
individual home builders in the small towns.
 Ambuja has followed a philosophy to produce excellent quality of cement from all its plants
from a range of raw materials. To maintain the high standard of quality, the Company has set
the Product Quality Management (PQM) system which is designed with the help of
LafargeHolcim expertise.

3. DISTRIBUTION NETWORK
The quality products of ambuja cement are marketed and distributed pan India with the strong
network of Sales Offices and warehouses with well-trained & experienced personnel. There is a
vast distribution network of evolved dealers and retailers whose reach helps the Company to
cater to all markets including rural and semi-urban markets. This,which is coupled with the
strong brand equity and efficient channel management, helped the Company to withstand severe
competition.

4.. BRAND BUILDING

The new TV commercial „The Great Khali‟s house‟ became an instant hit with the people
across different social strata and geography. It went viral on the digital medium clocking for
more than two million views on YouTube alone.The advertisement has created a buzz in the
dealer network. It has also given a fresh push to the brand in the market besides setting up a
new benchmark in advertising.

5. TECHNICAL SERVICES
Ambuja‟s technical services team consisted of around 300 expert civil engineers. It continued to
work closely with the individuual house builder, contractor and customers as well. These
engineers had scientifically developed innovative techniques of concrete mixing and curing. The
response was so overwhelming that the number of sites serviced by the engineers increased by
three times. Ambuja has also reached out to more than 20000 contractors through a series of
technical training programs and easy-to-use mobile apps.

J.K. LAXMI CEMENT

1. SETTING UP CLEAR VISION
J.K.Laxmi cement industry has a clear vision to

 Be a profitably innovative, caring & growing Company

 Become a significantly relevant player in the minds of the consumers

2. SETTING A CLEAR MISSION

J.K.Laxmi cement industry has a mission to-

 Achieve the growth in Sales & Profit, which should be higher than the comparable
sized players
 Achieve the Operational Excellence
 Be the workplace of choice-Attract, Retain and Grow the Talent Pool of the change
leaders
 Create superior value for the customers through Brand Positioning and Premium Products
 Continuously enhance the shareholders' wealth and be a preferred portfolio amongst
the investors

3. SETTING UP CORE VAUES

J.K.Laxmi cement industry has set up following Core values

 Caring for the people

 Integrity including intellectual honesty, fairness, openness, & trust
 Commitment to the excellence
WHICH MOTIVATION POLICIES ARE EXICUTED FOR
EMPLOYEES

AMBUJA CEMENT COMPANY

1. PROVIDE GOOD GROWTH OPPORTUNITIES

Ambuja Cement company provide good growth opportunities . It provide continuous learning
opportunities to employees (management and non-management staff) for their future growth and
development.

2. PROVIDE FLEXIBLE WORKING HOURS

Ambuja Cement Company provides flexible working hours , good paid leave package and ,great
learning experience at field.

3. PROVIDE REWARDS AND INCENTIVES

The company provides rewards and incentives to their employees to motivate them.

4. PROVIDES EMPLOYEE GROUP INSURANCE

Ambuja Cement Company provides employee group insurance. Health insurance and other
petrol allowance is also provided

5. „I CAN‟ SPIRIT

Ambuja Cement employees has stood out from their peers in other companies through their „I
CAN‟ spirit, which has encouraged them to push their boundaries, excel and innovate to meet
newer challenges.
J.K.LAXMI CEMENT COMPANY

1. Employees Co-Operative Society:

An Employees Co-Operative Society is established with an aim to serve the improvement of

employees in the plant. Society helps the employees in such a way that, Providing loans to the
individual who is in a needy position and fulfillment of needs of the employees in the plant.

2. Coromandel Co-Operative Stores

The Employees Co-Operative Stores is constituted with the aim to serve the betterment of
employees in the plant. The store ensures to meet the household items of the employees in the
plant. It provide quality grains and house hold items at reasonable prices.

3. Sports Encouragement:

Apart from granting special leaves to the employees who represent the company in the state level
tournaments or other tournaments, the company also introduced cash awards as a sort of
encouragement to the talented sports personnel of the company who participated in the cultural
events and represent the company. The employee is than given special leave for the days of his
absence from the duty.

4. Medical camps –
JK Lakshmi Cement Limited frequently sets up medical camps for the benefit of the physically
challenged people. As part of these camps, the patients receive free medical help from well
qualified doctors and appropriate supportive equipment are also been distributed. The facilities
of free operations for eyes and post-operative treatment are also provided to eye patients as per
their requirement.
 STRATEGIES USED TO BUILD GROUP DYNAMICS

AMBUJA CEMENT COMPANY

1. Strategy 2022 - “Building for Growth”

Ambuja cement company has focussed on all four value drivers i.e., Growth, Simplification &
Performance, Financial Strength, Vision & People. This strategy has enabled the company to
shift gears and grasp every opportunity to grow both , the top and the bottom line which the
company wants to take forward in 2019.

2. Sustainable Development Ambitions 2020-2030

The 12th Sustainable Development Report (in accordance with Global Reporting Initiative
(GRI) Standards: Comprehensive) for the year 2018 themed on „Circular Economy‟, one of the
four pillars of the Sustainable Development Ambitions 2020-2030. The other pillars for
sustainable development are Climate and Energy, Environment and Community.

3. Fulfil the needs of its customers

The Ambuja cement company continually innovates to fulfill significant unmet needs of its
customers in a more environmentally favourable manner. The new products and solutions of
ambuja cement company - Ambuja Compocem (composite cement), Ambuja Cool Walls
(environment-friendly blocks), Ambuja Modular Curing Solution (a water-saving green
alternative for curing), Rooftop Rainwater Harvesting (for water conservation and storage) and
Ambuja Pura Sand (manufactured sand for plastering) - play the dual role of fulfilling important
customer needs and significantly conserve natural resources.

5. Health and Safety

For health and safety, the company‟s commitment is reflected in two plants that
accomplished „Zero Harm‟ and seven sites recorded „Zero Lost Time Injury‟ (LTI).

J.K.LAXMI CEMENT COMPANY

1. Substantial Savings in costs

The Company has achieved high efficiency parameters in the areas of energy consumption,
use of alternate fuels, establishing of green power etc., thereby effected substantial savings in
costs and improved productivity.

2. Improve customer relationship

Use of colored packing bags, introduction of ERP solution and use of other high end software to
improve the processes and improve customer relationship with an eye on continuously improving
company's brand equity.

3. Efficiency parameter

The efficiency parameter of the Company with respect to the power consumption and fuel
consumption continues to be one of the best in the cement industry. The Company's captive
power generation has also touched a new hight , thereby reducing the cost of operations
besides enables to meet the renewable energy obligation.

4. SUSTAINABLE ENVIRONMENT AND UTILIZING

INDUSTRIAL WASTE
J.K.Laxmi cement company have continuously worked and aims to reduce the
energyconsumption and CO emissions per MT of 2 cement. This company is also at the
forefront of utilizing industrial wastes such as Fly Ash, blast furnace slag, chemical gypsum
etc. in its products without sacrificing any quality parameter and in fact the quality has been
enhanced to create more value for the customers.
 WHAT SORT OF LEADERSHIP IS FOLLOWED

AMBUJA CEMENT COMPANY

Ambuja cement‟s industry leadership status is built on its world-class products, pioneering
initiatives and sustainable business growth

1. Strategic Leadership

Strategic leadership is the one that involves a leader who is essentially the head of an
organization. The strategic leader is not only limited to those at the top of the organization. It is
geared to a wider audience at all the levels of the company who want to create a high
performance life, team or organization.

This is a desirable leadership style in ambuja cement company because strategic thinking
supports multiple types of employees at once.

2. Coach-Style Leadership

This leader focuses on identifying and nurturing the individual strengths of each and every
member of their team. They also focus on the strategies that will make their team work better
together.

this leader won‟t force all the employees to focus on similar skills and goals, rather it builds a
team where each and every employee has an expertise or skillset in something different.

In the longrun, this type of leaders focuses on creating strong teams that can communicate well
and enclasp each other's unique skillsets in order to get work done.

Coach style leadership is applied in Ambuja cement company for growth and development of the
company.
J.K.LAXMI CEMENT COMPANY

1. Coaching Leadership
Coach style leadership involves teaching and supervising the followers of a company. It is
highly operational in setting where results/ performance is required to improve. In this kind of
leadership, the followers are helped to improve their skills.
Coaching leadership does the following work:
Motivates followers
Inspires followers
And Encourages followers.

Coach style leadership is followed in J.K.Laxmi cement company to improve the skillset of its
employees for increasing the productivity of the company.

2. Team leadership
Team Leadership involves the creation of a vivid picture of its future, as for , where it is heading
and what it will stand for in future . This vision inspires and provides a strong sense of purpose
and direction to the workers of the company..
Team leadership is about working with the hearts and minds of all those who are involved in the
team.
Team leadership promotes team work and team spirit and it involves all the employees working
in the team and motivate them to work in a productive way to increase the growth and
development of the company.

3. Democratic Leadership

In this style of leadership , subordinates are also been involved in making decisions. This
Leadship is mainly centered on subordinates‟ contributions. The democratic leader holds the
final responsibility, but he or she is known to delegate its authority to other people, who
determine the work projects. This type of leadership is applied in J.K. Laxmi cement company.
HOW PERFORMANCE EVALUATION IS CONDUCTED

AMBUJA CEMENT COMPANY

1. Talent Management Model

Ambuja cement company have implemented a talent management model for succession planning
of senior management. Through this process high potential successors are identified by the
process of mapping their sustained performance (on a different scale from performance appraisal
rating over a three year time period) and learning agility (ability and willingness to learn from
experience and apply learning to perform in new conditions).

J.K.LAXMI CEMENT COMPANY

1. MONTHLY ANALSIS REPORT

J.K.Laxmi cement company have implemented a monthly analsis report which helps in
evaluating the performance of the employees working in the company. In this report a monthly
analysis is done of the employees according to the work allotted to them.This helps the managers
to analyse the growth of the employees.

WHICH ARE THE PRACTICES FOLLOWED FOR CHANGE

MANAGEMENT

AMBUJA CEMENT COMPANY

1. Innovative Recruitment And Retention Practices

Ambuja cement company provides innovative recruitment and retention practices to their
employees for change in management practices.
2. Competitive Compensation Plans
Ambuja cement company provides competitive compensation plans to their employees for
change in management practices.

3. Continuous Learning Opportunities To Employees

Ambuja cement company provides Continuous Learning Opportunities To Employees
for their future growth and development.

4. „I CAN‟ spirit
Ambuja Cement company employees stand out from their peers in other companies through
their „I CAN‟ spirit, which has encouraged them to push their boundaries, excel and innovate to
meet newer challenges.

5. Chance To Build a Meaningful Career

Ambuja cement company provides a chance to build a meaningful career for their employees for
their growth and development.

J.K.LAXMI CEMENT COMPANY

1. To Become A High Performance Organization

Right from gaining foothold in the new and emerging markets in the country to investing in the
latest R & D, J.K.Laxmi cement company have continued to be a resilient performer despite the
constantly evolving challenges of the cement sector.

2. Technical Services Cell

Continuing on our focused strategy to educate, engage and empower our customers, we have in
place a full-fledged Technical Services Cell with experts from the construction industry. These
certified experts provide construction solutions by carrying out regular and innovative contact
programmes with the key stakeholders including Individual House Builders, Masons and
Business Associates.
3. to invest in research and development
To maintain market leadership and bolster the future growth of our business, we continue to
invest in research and development of high technology products and manufacturing processes in
all our cement plants across the country.
 CHAPTER:3.5 MANAGEMENT ACCOUNTS

Horizontal Analysis Ratio Analysis Horizontal analysis of Ambuja

cement
COMPARATIVE INCOME STATEMENT
% of
Particulars 2017 2018 increase / increase/
decrease
decrease

Total revenue from operations (SALES -EXCISE DUTY) 10457.1 11356.76 899.66 8.60%

EXPENDITURE

Increase/Decrease in Stock -62.83 -76.72 -13.89 22.11%

Raw Materials Consumed 909.33 1019.04 109.71 12.06%

Power & Fuel Cost 2233.07 2549.69 316.62 14.18%

Employee Cost 661.37 679.57 18.2 2.75%

Other Manufacturing Expenses 1714.25 1901.92 187.67 10.95%

General and Administration Expenses 143.38 152.51 9.13 6.37%

Selling and Distribution Expenses 2287.84 2584.54 296.7 12.97%

Miscellaneous Expenses 631.56 655.74 24.18 3.83%

self-consumption of cement -1.01 -0.99 0.02 -1.98%

Total Expenditure 8516.96 9465.3 948.34 11.13%

PROFIT BEFORE INCOME, INTEREST AND TAX 1940.14 1891.46 -48.68 -2.51%

INCOME
Other Income 359.09 374.98 15.89 4.43%

TOTAL INCOME 359.09 374.98 15.89 4.43%

Operating Profit 2299.23 2266.44 -32.79 -1.43%

Interest 107.19 82.33 -24.86 -23.19%

PROFIT BEFORE DEPRECIATION AND TAX 2192.04 2184.11 -7.93 -0.36%

Depreciation 572.09 548.09 -24 -4.20%

Profit Before Taxation & Exceptional Items 1619.12 1636.02 16.9 1.04%

Exceptional Income / Expenses 0 -129.95 -129.95 -100.00%

Profit Before Tax 1619.12 1506.07 -113.05 -6.98%

Provision for Tax 369.55 19.06 -350.49 -94.84%

PAT 1249.57 1487.01 237.44 19.00%

COMPARATIVE BALANCESHEET

% of
increase /
Particulars 2017 2018 increase/
decrease
decrease

EQUITY AND LIABILITIES

Share Capital 397.13 397.13 0 0.00%

Total Reserves 19,576.08 20,615.40 1039.32 5.31%

Shareholder's Funds 19,973.21 21,012.53 1039.32 5.20%

Long-Term Borrowings

Secured Loans 24.12 39.68 15.56 64.51%

Deferred Tax Assets / Liabilities 458.36 372.16 -86.2 -18.81%

Other Long Term Liabilities 8.94 8.35 -0.59 -6.60%

Long Term Provisions 35.23 38.53 3.3 9.37%

Total Non-Current Liabilities 526.65 458.72 -67.93 -12.90%

Current Liabilities

Trade Payables 1,046.53 1,109.46 62.93 6.01%

Other Current Liabilities 1,997.21 1,909.82 -87.39 -4.38%

Short Term Provisions 1,083.24 696.15 -387.09 -35.73%

Total Current Liabilities 4,126.98 3,715.43 -411.55 -9.97%

Total Liabilities 24,626.84 25,186.68 559.84 2.27%

ASSETS

Non-Current Assets

Gross Block 7,139.17 7,607.73 468.56 6.56%

Less: Accumulated Depreciation 1,417.18 1,944.13 526.95 37.18%

Net Block 5,721.99 5,663.60 -58.39 -1.02%

Capital Work in Progress 348.48 610.02 261.54 75.05%

Intangible assets under development 49.44 0 -49.44 -100.00%

Non Current Investments 11,844.70 11,813.76 -30.94 -0.26%

Long Term Loans & Advances 785.3 814.83 29.53 3.76%

Other Non Current Assets 366.75 529.53 162.78 44.38%

Total Non-Current Assets 19,116.66 19,431.74 315.08 1.65%

Current Assets Loans & Advances

Inventories 1,052.50 1,277.76 225.26 21.40%

Sundry Debtors 307.97 470.26 162.29 52.70%

Cash and Bank 3,497.07 3,329.97 -167.1 -4.78%

Other Current Assets 168.57 250.78 82.21 48.77%

Short Term Loans and Advances 484.07 426.17 -57.9 -11.96%

Total Current Assets 5,510.18 5,754.94 244.76 4.44%

Net Current Assets (Including Current

1,383.20 2,039.51
Investments) 656.31 47.45%

Total Current Assets Excluding Current

5,510.18 5,754.94
Investments 244.76 4.44%

Total Assets 24,626.84 25,186.68 559.84 2.27%

 HORIZONTAL ANALYSIS OF JK LAKSHMI CEMENT

COMPARATIVE INCOME STATEMENT

% of
increase /
Particulars 2017 2018 increase/
decrease
decrease

Gross Sales 3,260.12 3,514.19 254.07 7.79%

Less: Excise 349.71 102.04 -247.67 -70.82%

REVENUE FROM SALES 2,910.41 3,412.15 501.74 17.24%

EXPENDITURE:

Increase/Decrease in Stock 12.76 -47.97 -60.73 -475.94%

Raw Materials Consumed 749.2 826.35 77.15 10.30%

Power & Fuel Cost 566.95 795.87 228.92 40.38%

Employee Cost 208.39 234.95 26.56 12.75%

Other Manufacturing Expenses 145.92 158.83 12.91 8.85%

General and Administration Expenses 22.12 27.17 5.05 22.83%

Selling and Distribution Expenses 833.98 1,001.71 167.73 20.11%

Miscellaneous Expenses 5.68 3.88 -1.80 -31.69%

TOTAL EXPENDOTURE 2,545.00 3,000.79 455.79 17.91%

PROFIT BEFORE INCOME, INTEREST

AND
365.41 411.36
TAX 45.95 12.57%
INCOME

Other Income 69.81 68.1 -1.71 -2.45%

TOTAL INCOME 69.81 68.1 -1.71 -2.45%

Operating Profit 435.22 479.46 44.24 10.16%

Interest 188.65 197.48 8.83 4.68%

PROFIT BEFORE DEPRECIATION

AND TAX 246.57 281.98 35.41 14.36%

Depreciation 172.37 179.27 6.90 4.00%

Profit Before Taxation & Exceptional

74.2 102.71
Items 28.51 38.42%
Profit Before Tax 74.2 102.71 28.51 38.42%

Provision for Tax -7.8 18.75 26.55 -340.38%

PAT 82 83.96 1.96 2.39%

COMPARATIVE BALANCE SHEET

% of
increase /
Particulars 2017 2018 increase/
decrease
decrease

EQUITY AND LIABILITIES

Share Capital 58.85 58.85 0 0.00%

Total Reserves 1,322.84 1,394.36 71.52 5.41%

Shareholder's Funds 1,381.69 1,453.21 71.52 5.18%

Long-Term Borrowings

Secured Loans 1,573.70 1,373.39 -200.31 -12.73%

Unsecured Loans 16.36 25.03 8.67 53.00%

Other Long-Term Liabilities 297.1 300.65 3.55 1.19%

Long Term Provisions 10.77 10.8 0.03 0.28%

Total Non-Current Liabilities 1,897.93 1,709.87 -188.06 -9.91%

Current Liabilities

Trade Payables 264.78 318.62 53.84 20.33%

Other Current Liabilities 583.45 581.22 -2.23 -0.38%

Short Term Borrowings 376.25 412.96 36.71 9.76%

Short Term Provisions 7.46 10.23 2.77 37.13%

current Tax liability 12.14 2.68 -9.46 -77.92%

Total Current Liabilities 1,244.08 1,325.71 81.63 6.56%

Total Liabilities 4,523.70 4,488.79 -34.91 -0.77%

ASSETS

Non-Current Assets

Gross Block 3,158.33 3,303.93 145.6 4.61%

Less: Accumulated Depreciation 334.33 512.73 178.4 53.36%

Net Block 2,824.00 2,791.20 -32.8 -1.16%

Capital Work in Progress 205.08 226.14 21.06 10.27%

investment property 0.66 0.61 -0.05 -7.58%

Intangible assets 1.68 1.71 0.03 1.79%

Intangible assets under development 0 1.94 1.94 100.00%

Deferred Tax Assets / Liabilities 8.65 19.98 11.33 130.98%

Non-Current Investments 309.49 353.89 44.4 14.35%

Long Term Loans & Advances 104.88 88.12 -16.76 -15.98%

Other Non-Current Assets 0.1 0.11 0.01 10.00%

Total Non-Current Assets 3,454.54 3,483.70 29.16 0.84%

Current Assets Loans & Advances

Currents Investments 499.7 440.24 -59.46 -11.90%

Inventories 277.64 317.03 39.39 14.19%

Sundry Debtors 89.5 96.94 7.44 8.31%

Cash and Bank 8.98 11.59 2.61 29.06%

Other Current Assets 10.46 9.45 -1.01 -9.66%

Short Term Loans and Advances 182.88 129.84 -53.04 -29.00%

Total Current Assets 1,069.16 1,005.09 -64.07 -5.99%

Total Assets 4,515.05 4,468.81 -46.24 -1.02%

RATIO ANALYSIS

1)Current ratio

Company Ambuja Cement J.K Lakshmi Cement

Year 2016 2017 2018 2016 2017 2018

Current 4213.69 5510.18 5754.94 845.01 1069.16 1005.09

assets

Current 3431.69 4126.98 3715.43 1254.44 1244.08 1325.71

liability

Current ratio 1.23 1.31 1.55 0.67 0.86 0.76

Current Ratio
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
Ambuja Cement J K Lakshmi Cement
2016 2017 2018
Interpretation:
• For Ambuja cement the current ratio is increasing it means that the
company is performing better and handling their assets properly
 • For J K Lakshmi cement the current ratio has decreased as compared to last
year it means the company has to take proper steps to improve the
efficiency
• If we compare from current ratio point of view Ambuja cement is
performing better than J K Lakshmi cement.

2)Debt to equity ratio

Company Ambuja Cement J.K Lakshmi Cement

Year 2016 2017 2018 2016 2017 2018

Total liability 564.21 526.65 458.72 1549.84 1889.28 1689.89

Shareholders‟ 21012.53 19973.21 19356.87 1304.09 1381.69 1453.21

equity

0.026 0.026 0.023 1.19 1.37 1.16

Debt to equity Ratio

1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
Ambuja Cement J K Lakshmi Cement

2016 2017 2018

Interpretation:
• Debt equity ratio for Ambuja cement is decreasing which is not
got for the company. It means that the resources of the company is
not properly utilised.
• Since the ideal ratio is 2:1 the company is only dependent on own
funds and not outside liability
• Debt equity ratio of J K Lakshmi cement is increasing it means
company is utilizing funds properly
• As per debt equity ratio J K Lakshmi cement is doing better.

3)Cash position ratio

Company Ambuja Cement J.K Lakshmi Cement

Year 2016 2017 2018 2016 2017 2018

2578.52 3497.07 3329.97 11.76 8.98 11.59

Current liability 3431.69 4126.98 3715.43 1254.44 1244.08 1325.71

0.75 0.85 0.90 0.009 0.007 0.008

 Cash position Ratio
1
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
Ambuja Cement J K Lakshmi Cement
2016 2017 2018

Interpretation:
• Cash position ratio of Ambuja cement is increasing which is good for the firm and
it is getting near to ideal ratio of 1:1
• Cash position ratio of J k Lakshmi cement has decreased and it is very less, it
means the company has very low cash and cash equivalence
• As per cash position ratio Ambuja cement is doing well.
4)Inventory turnover ratio

Company Ambuja Cement J.K Lakshmi Cement

Year 2016 2017 2018 2016 2017 2018

806.99 972.16 1095.76 727.75 763.44 874.32

916.495 995.02 1165.13 232.01 259.095 297.335

0.88 0.98 0.94 3.13 2.95 2.94

Inventory turnover Ratio

3.5

2.5

1.5

0.5

0
Ambuja Cement J K Lakshmi Cement
2016 2017 2018
Interpretation:
• Inventory turnover ratio of Ambuja cement is increasing which is
good for the firm and it is getting near to ideal ratio of 1
 • Inventory turnover ratio of J k Lakshmi cement is very high it means
they are spending large amount on stock and their storing
• As per inventory turnover ratio Ambuja cement is doing well.

5)Net profit ratio

= × 100

Company Ambuja Cement J.K Lakshmi Cement

Year 2016 2017 2018 2016 2017 2018

932.24 1249.57 1487.01 -6.56 82.00 83.96

9230.51 10457.10 11325.76 2619.85 2910.41 3412.15

10.10% 11.95% 13.13% -0.25% 2.82% 2.46%

 Net Profit Ratio
14
12
10
8
6
4
2
0
Ambuja Cement J K Lakshmi Cement
-2
2016 2017 2018

Interpretation:
• Net profit ratio of Ambuja cement is increasing which is good for the company
• Net profit ratio of J k Lakshmi cement has decreased and it is very less, it means
the company has to work on profitability aspect.
• As per Net profit ratio Ambuja cement is doing well.

6)Fixed asset turnover ratio

=
 Company Ambuja Cement J.K Lakshmi Cement

Year 2016 2017 2018 2016 2017 2018

Net Sales 9230.51 10457.10 11325.76 2619.85 2910.41 3412.15

Average 5671.455 5808.335 5628.32 3287.625 3350.495 3451.415

Fixed
Assets

Current 1.63 1.80 2.01 0.80 0.88 0.99

ratio

Fixed Asset Turnover Ratio

2.5

1.5

0.5

0
Ambuja Cement J K Lakshmi Cement
2016 2017 2018

Interpretation:
• Fixed asset turnover ratio of Ambuja cement is increasing which is
good for the company
• Fixed asset turnover ratio of J k Lakshmi cement is also increasing.
• As per Fixed asset turnover ratio Ambuja cement is doing well.
 CHAPTER:3.7 BUSINESS ETHICS AND CORPORATE
GOVERNANCE.

CORPORATE GOVERNANCE-

The set of systems, principles and processes by which any company is governed is refered as
corporate governance. It provides the guidelines and structure as to how the company could be
directed or controlled such that it can fulfil its goals and objectives. Following these guidelines
includes monitoring of the actions, corporate policies, ethical practices, and decision making of
companies, their agents, and affected stakeholders. It's practices are refered as attempts to align
with the interests of stakeholders and all the parties related to it's corporation.
Corporate governance also helps them in Making decisions in corporate affairs,
in such a manner that it adds the value of the company and also benefits all the stakeholders and
society in the long term.

Stakeholders here above are everyone including the board of directors, management,
shareholders, customers, employees and societyas whole. Hence, The management of the
company plays the role of a trustee for all the above mentioned parties.

Corporate governance is also quite narrowly defined as "A system of law and principles by
which corporations are directed and controlled, having focus on their internal and external
structures or corporation with the intention of monitoring the actions of management and
directors of the company and thereby, mitigating agency risks by corporate officials.

PRINCIPLES OF CORPORATE GOVERNANCE

Principals of corporate governance tend to refer to three documents released since 1990:
1) The Cadbury report (UK, 1992)
2) The Principles of Corporate Governance (OECD, 1999, 2004 and 2015) and
3) The Sarbanes -Ocely Actof 2002 (US, 2002).
Following are the general principles followed in corporate governance.

Rights and equitable treatment of shareholders:

Corporates should respect and protect the rights of shareholders and help them to exercise their
given rights. They can help them by openly and effectively giving information and by
encouraging shareholders to participate in general meetings of companies they have interest in.

Interests of other stakeholders:

Organizations should make sure that they have legal, contractual, social, and market driven
obligations towards all parties that is, shareholders, employees, investors, creditors, debtors,
local market dealers, customers, and policy makers.

Role and responsibilities of the board:

The board needs to have good skills and better understanding so that they can review and
challenge the performance of Management. It also needs to have appropriate level of
independence and commitment.

Integrity and ethical behavior.

Integrity is considered as a fundamental requirement in choosing corporate officials and board

of members. Organizations should have their own code of conduct for their directors and
executives officers who promote ethical and responsible decision making.

Disclosure and transparency:

Organizations need to clarify and announce publicly the roles and responsibilities of board and
management. It will provide stakeholders a great level of accountability. To safeguard the
integrity of the company's financial reporting, they should implement different types of
procedures . Disclosure of material matters concerning the organization are to be timely balanced
and ensure that all investors have an access to clear and factual information.

CODE OF CORPORATE GOVERNANCE IN INDIA

SEBI Code of Corporate Governance:

SEBI (Securities and Exchange Board of India) constituted a committee to promote good
corporate governance, under the chairmanship of Kumar Mangalam Birla. On the basis of the
recommendations by the committee, SEBI has issued certain guidelines and codes on corporate
governance; that need to followed by companies in th listing agreement with stock exchange.

SEBI guidelines are as under the appropriate heads:

(A) Board of Directors:

(i) The number of independent directors depend on status of chairman whether it's executive not.
In case of non-executive chairman, at least, one third of the Board members are independent
directors; and in case of executive chairman, at least, half of the Boards are independent
directors.

(ii) The maximum permissible directors in public company cannot exceed 15. If more directors
have to be appointed, then a Special Resolution should be passed by shareholders

(b) Audit Committee:

(1) The company should have an independent audit committee following the below Constitutions
(i) It must have minimum three members, all being non-executive directors, and majority of them
being independent.

(ii)The Chairman of the committee shall be an independent director.

(iii)The Chairman needs to attend Annual General Meeting to answer shareholders‟ queries.

(2) The powers of audit committee must include:

1. Investigation of any activity that is within its reference

2.To have right to seek information from any Working employee

3. it can ask for any legal or other professional advice for matters that concerne

(3) The role of audit committee includes:

(i) Overseeing company‟s financial reporting process and analysing its financial information
to ensure that the financial statements are correct, sufficient and credible.

(ii) Recommending the appointment and removal of external auditor.

(iii) To Review the Working of internal audit function and company‟s financial and
risk management policies.

(iv) Discussing the nature and scope of audit; as well as to have post-audit discussion with
managers
(C) Management:

Management Analysis Report should be a part of the annual report provided to shareholders; on
the following matters

(i) SWOT analysis

(ii) Segment-wise and product-wise performance of company

(iii) Discussion on financial performance with respect to operational performance

(d) Report on Corporate Governance:

There should be a separate section on corporate governance in the Annual Report of the
company, with a detailed report about corporate governance.
corporate governance recommended by Uday Kotak Committee.

On March 28, 2018, the Securities and Exchanges Board of India (SEBI) accepted 40 out of 80
recommendations suggested by the Uday Kotak Committee on Corporate Governance.

The major recommendation of the committee that was given is to separate the position of CEO or
MD and that of Chairperson of the listed companies.

As the recommendation has been accepted by SEBI,

the post separation would be in effect from April 1, 2020. Initially, it would be applicable for
only top 500 listed firms in terms of market capitalisation.

Recommendations that are accepted by SEBI without any modifications

• Reduced the maximum number of listed entity directorships from 10 to 8 by April 01, 2019 and
to 7 by April 1, 2020.

• Expansion in eligibility criteria of independent directors.

• Role of the all the committees such as Audit, Nomination and Remuneration and Risk
Management Committees has been enhanced.

• Disclosure of utilization of funds from preferential issue.

• Auditor credentials as well as auditor's fee and reasons of resignation by auditors, etc. needs
to be disclosed.

• Disclosure of expertise of directors.

• Enhanced disclosure of related party transactions (RPTs) and related parties to be permitted to
vote against RPTs.

• Compulsory disclosure of consolidated quarterly results with effect by FY 2019-20.

• Incresed in obligations of the listed companies with respect to subsidiaries.

• Mandatory secretarial audit for the listed entities and their unlisted subsidiaries under SEBI
LODR Regulations.

Recommendations accepted with certain modifications

• Requirement of minimum six directors in the top 1000 listed companies by market
capitalization from April 1, 2019 and same condition in the top 2000 listed entities from April 1,
2020.

• In the top most 500 listed companies by market capitalization there should at least one woman
independent director by April 1, 2019 and same followed in the top 1000 listed entities by April
1, 2020.

• Separation of CEO/MD and Chairman position.

• setting up the quorum i compulsory for board meetings in the top 1000 listed companies by
market captialzation by April 1, 2019 and in top 2000 listed companies by April 1, 2020.
The quorum must cosist of 1/3rd of the Board members or 3 members, whichever is higher.

• After the end of FY 2018-19, top 100 entities are to hold AGMs within 5 months.

•For top 100 entities by market capitalization Webcast of AGMs will be compulsory from FY
2018-2019
Moreover, the board of the market regulator
suggested certain recommendations to different agencies, considering their matters involved.

Some of these recommendations includes strengthening the role of ICAI, internal financial
controls, treasury stock, governance aspects of PSEs, etc.
Pre post effect of corporate governance on companies after Uday kotak's committee
recommendations.

25-members from Securities and Exchange board of India (Sebi) led by banker Uday Kotak have
recommended many changes for listed companies, for independent directors, chairperson solely
for non-executive directors, and various steps for transparency and disclosures of public
companies.

Before the proposals was implemented, more over 256 companies on NSE had to increase their
board size and around 637 had to appoint a woman director, a survey by Prime Database showed.

Before the recommendations of SEBI out of 1,670 companies, 154 companies had five
directors, 82 had four, 19 had only three while there was one company who just had two, which
was 99% of market cap of NSE.

Ambuja cement:

Good corporate governance hasa always been an integral part of the company from very
beginning. company has been implementing the sound management practices and laws, adhering
to the maximum standards of transparency and business ethics.
As company comes in top 500 listed companies effect of uday kotak's recommendations
on ambuja cement were as follows:

1) Before April 2019 ambuja cement had only 5 directors which has now been increased to 10

2) Shikha Sharma a woman director as recommended was appointed as Independent Director at

ambuja cement. she was MD and CEO of Axis Bank ltd till 2018.
3) Company after that Disclosed Auditor credentials as well as auditor's fee, which before was
not disclosed as a matter of private policy

4) Separation of positions that is chairman of ambuja cement now is NS Sekhsaria who also
managing director before but now the position of Managing director is given to Bimlendra Jha.

5) Setting up quorum was done before as well so for a reputed company like Ambuja cement it
was not a major problem.

6) Disclosure of expertise of directors is not yet followed or done by the company even after the
recommendations.

7) Company has started disclosing it quarterly results as well, which has increased more
transparency among the stakeholders of the company.

8) All obligations with respect to subsidiaries are followed.

9) Disclosure of utilization of funds from preferential issues has not yet followed by the
company.

JK Laxmi cement:

JK Laxmi cement is committed to conduct its business as per the applicable laws, regulations,
and guidelines of government and follow high standards of business ethics.
It is expected of the Directors and Senior Management Team of the Company to comply with the
same. The accounts of the JK laxmi are maintained in a fare and accurate, and transparent mnner
as the accounting standards.

As company comes in top 500 listed companies effect of uday kotak's recommendations on
ambuja cement were as follows:
1) It has 7 independent director which were 5 before the recommendations by SEBI.

2) There was already a woman director in JK Laxmi cement from 2015. At present company has
Two woman director, one non-independent while one Independent.

3) Company has Disclosed Auditor credentials as well as auditor's fee, which is mandatory for
all companies and creates a transparency.

4) No separation of position has been yet done by the company as At present, Mr. yadupati
Singhania is both Chairman as well as Managing director of JK Laxmi cement.

5)Setting up quorum was done before as well so for a reputed company like JK Laxmi cement it
was not a major problem.

6) Disclosure of expertise of directors is always followed by the company even before the
recommendations.

7)Company has started disclosing it quarterly results as well, which makes it competitive with
Ambuja cementin market.

8) All obligations with respect to subsidiaries are followed.

9) Disclosure of utilization of funds from preferential issues has not yet followed by the
company.
A study of the impact of corporate governance practices on Ambuja cement and JK laxmi.

Abstract

Corporate governance is the combination of laws and systems by which entities are directed and
controlled. Boards of directors take the responsibility for the governance of the companies. The
shareholders‟ role is to appoint the directors and the auditors and that could help them satisfy, by
ensuring that an appropriate governance structure is in place.

Good governance can have better impacts to the non listed sector, as it is actually about
improving transparency and accountability within the systems.
One of the interesting developments in the last few years has been the way in which the
„corporate‟ governance has been labeled and used to describe governance and their
accountability issues beyond the corporate sector.

Report is an to evaluate the Corporate Governance and Financial performance among Ambuja
cement and JK Laxmi Cement industries.
In order to analyse this , Case study approach is used and sample of both are selected for the
Period considered for the study includes five years ending 2017-18

Corporate governance cement industry.

Introduction

Governance refers to following to the specific regulations and norms of society. Many
companies have made
proactive initiatives to introduce good governance norms before even being mandatory as per
law.
The Indian Government has a very reliable and strong financial guidelines through SEBI, to
emphasize latest regulations in Corporate Governance.

According to Business Standard, India has been ranked as the second largest producer of cement
in the world. Due to Infrastructure development in india, initiatives taken by the Government, the
demand for Cement sector is expected to increase in the coming years.
India has by now have 575 operational cement plants as on Financial year 2018. Many different
changes in Government laws have been implemented to safeguard investors interest of
stakeholders and improve Corporate Governance
therefore here is a study of sectoral impact of the parameters laid on the basis of their
performance.

Objectives of the Report

1. Study the Corporate Governance of sample in selected companies for the period 2013-2014 to
2017-2018

2. Analyzing the important parameters and evaluating them reflecting the effective Governance
and financial performance of selected companies.

Scope of Study
The study is related to Corporate Governance practices considering samples of both selected
companies listed on NSE.
Study Period is of five years
from 2013-2014 to 2017-2018.

Research Plan for Data Collection

whole Data is collected from secondary sources like Reports, Journals, Websites and newspapers
for the purpose of this study.

Methodology

1. Legal rules and laws on Corporate Governance in India

In India, listed companies are regulated by Institutions like SEBI and RBI
Companies Amendment Act 2017 and SEBI has changed the Corporate Governance norms for
Indian Listed companies.

2. Analysis of Secondary Data

a) Sample for the study constitutes data of selected Cement companies Listed on NSE.

Documents of the company that are relied upon for evaluating the report are as follows:

● Directors Report
● Auditors Report
● Directors Report on Corporate Governance
● Website of the respective companies

b) VARIABLES STUDIED

i. Independent Variables
● Average Board Size of 2 sample cement companies for selected period.
● Average Independent directors as a percentage of Total directors of
2 sample companies for selected period.

ii. Dependent Variable

● Average Return on Capital Employed of 2 sample cement companies for selected period.

SAMPLE COMPANIES

1) AMBUJA CEMENT

2) J. K. LAKSHMI CEMENT

Sr. No. Performance parameter Y Governance parameter X

Average return on capital Average Board Size
employed

1) Ambuja cement 11.22 12.2

2) Jk Laxmi cement 9.58 10.4

Conclusion

It is marked that that board size and independent directors are positively associated with
corporate performance in selected companies. Therefore it could be concluded that over the
years the relation between Corporate Governance parameter and Return Of Capital Employed
has been increasing in Cement companies.
Analysis concludes that impact of regulations in sample period of five years has helped
in improving Corporate Governance thereby creating a positive effect on Firm's
financial
performance to a some extent. It needs to be observe that governance needs to be adopted by
companies truly rather than just a formality exercise. With higher standards coming up the
Global markets, there is a need to improve efficiency in quality of Corporate Governance and
retain the commitment towards stakeholders.
 PRACTICAL LEARNING FROM IMMERSION

Introduction to Industry and Company

We learnt about the cement industry the second highest drawing industry in India.
as we study the industry also learnt new aspects new terms and whole new market area.

From its production to types of things that provides. Kind of market it deals with and as well as
its marketing strategies.
we also related both the companies in competitive ways and studied its structure and working of
both the companies.

To begin with we studied overview of both the companies using its annual reports with the help
of which we understood the aims objectives and visions of them. As well as their sustainability
for future plans, their past 5 years annual reports and CSR activities and employee management.

Keeping the objective of immersion project in mind we were asked to relate the subject of 1st
semester with analysis of both the companies we have selected, as well as industry of which the
both companies belong to.

Starting with subjective analysis

 Practical learning from economics.

The very core of the economics lies in the theory of demand and supply of the market. we
studied both the companies have a strong demand for their products. we compared with the help
of pie chart and the pricing strategy of how the demand and supply works. we also studied
various markets that is Monopoly oligopoly perfect competition. Here both the companies have
very similar product but as industry is limited to only few firms it falls in oligopoly and with the
pricing decisions we also learnt that both the companies never agree to have the Nash
equilibrium.
By relating economics concept to the immersion studies we learned that it is very important to
realize in which market you are dealing, at what price you are dealing, what exactly is demand of
the consumer for that product as well as supply in the ratio of the demand.

 Practical learning from Managerial communication

Communication is the most important factor of any organization to be successful.

As in a lectures we have known about formal communication informal communication and
Hierarchy of communication we tried to relate the same with the companies that we selected.
by studying the structures of both the companies we evaluated that formal communication works
best when its downward as well as upward and informal communication works best when its
horizontal communication.
We also learnt there are various types of communication as well as the different communication
channels and to give the holistic view of the managerial communication of both the companies
we came to the conclusion communication in
Amuja cement company was used as a tool of motivation while in Jk Laxmi communication was
used as tool marketing using technologies like digital platforms. More or less in market we need
to understand the proper use of communication and it's channel in order to be a successful
manager.

 Practical learning from management information system.

Management information system allows us to interpret large data into the proper information
which helps us to taking decisions as well as predicting the future outcomes of the company.
there are various software that are used in management information system that is TPS EIS DSS
BPO etc. in both the companies used of technologies is seen at a great level
as this company is B2B e the use of DSS and EIS more in the company.
In today's world it is very important to use the the management information system in order to
run the business in very smooth and efficient manner.
There are various technologies, programs and software that are designed according to the needs
of the companies and customers which makes the process of running an organization much
easier.
There is also a very use demand of having a good knowledge about these information systems in
current market.

 Practical learning from Organizational Behavior.

Organizational behaviour is important to understand the behaviour of the employees in an

organization. any organization is built with its employees as well as people who are connected to
the organization.
With the help of immersion project we understood that how both the companies set different
kinds of goals and use the strategies of motivating the employees.
as launched in class the analysed both the companies on grounds of different theories that were
taught to us.
As we saw in Ambuja cement they used "I can" motivation which is the intrinsic factor that they
have used to motivate employees while JK Lakshmi made sure that their employees and highly
paid which is an external factor.
We also observed different patterns of group dynamics and teamwork in different types of
organization of the same industry.
While studying the annual reports we also derived that both organization have the different
cultures and systems of working.

 Practical learning from Management Accounts

It is very important to understand the financial stability of any company in the market to
understand its success over the period of time. As advised by a project be studied the data of last
5 years of the company and analysed the annual reports of both the companies.
As both are major companies in the same sector they both were doing really good profits. we
learnt several factors like how to read a balance sheet how to do comparative analysis how to
derive ratio and how to compare those ratios with ideal ratios in order to come out with the
decisions that would help the organization as well as help us as a customer to know whether to
invest in the company or not to invest in the company.
Financial analysis helps in many different types of things such as to know the stability of the
company to predict the future earning of the company to understand the market trends of the
industry to to take decisions that I related to finance of the company.

 Practical learning from Business ethics and corporate governance.

Practical learning of the subject are closely related two person who won make decisions in the
company.
The subject is divided into major parts that is business ethics which explain the need of taking
ethical decisions as an when the organization needs it and other part involves corporate
governance which are set of rules and regulations given by government in order to run of
business effectively in the society.
Both the terms help the organization to stay in the business for the longer time and benefit the
society in much positive way.
We studied about the code of ethics learnt about the corporate governance in India. as a subject
we have also studied the corporate governance in different countries and fever able to analyse
how Indian model is different than models of other countries.
Coming to corporate governance they were various committees that were formed in order to run
the organization in most efficient manner and one of the committee was Uday kotak committee.
We we have analysed its post and pre effects rules and regulations and mandatory
recommendations given by the committee.
Its effect on both the companies are evidently seen as well as enhanced the business in the
society
BIBLIOGRAPHY:

1) https://en.m.wikipedia.org/wiki/Corporate_governance
2) https://www.managementstudyguide.com/corporate-governance.htm
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governance/articleshow/3995278.cms
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recommendations-on-corporate-governance-get-sebi-sanction-2540971.html
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uday-kotak-committee-on-corporate-governance-1522301856-1
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new-corporate-governance-framework-118040300308_1.html
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major/jklakshmicement/JKL01
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history
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account.html
13) https://www.ambujacement.com/Sustainability/Stakeholder-engagement
14) https://www.tutorialspoint.com/management_concepts/communication_chann
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