A Comparative Study On Working Capital Management of Selected Cement Companies in India

A COMPARATIVE STUDY ON WORKING CAPITAL
MANAGEMENT OF SELECTED CEMENT

COMPANIES IN INDIA.
A Project Report Submitted to Ravenshaw University in Partial Fulfilment of The
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P.G. Department of Commerce

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Session: 2021-2023
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CONTENT
Chapter no. Particulars Page no.
ABSTRACT 6
CHAPTER-1 1.1 INTRODUCTION 7

1.2 CONCEPT OF WORKING CAPITAL 8-12
CHAPTER -2 2.1 LITERATURE REVIEW 13-17
CHAPTER-3 3.1 OBJECTIVE
3.2 RESEARCH METHODOLOGY

18-19
3.3 ASSUMPTION
3.4 LIMITATION
CHAPTER-4 4.1 COMPANY PROFILE 20-24
CHAPTER-5 5.1 DATA ANALYSIS AND 25-52

INTERPRETATION
CHAPTER-6 6.1 FINDINGS AND CONCLUSION 53
CHAPTER-7 7.1 BIBLIOGRAPHY 54-55
ANNEXURE 56-61
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A COMPARATIVE STUDY ON WORKING CAPITAL MANAGEMENT OF
SELECTED CEMENT COMPANIES IN INDIA
Abstract
This paper studies the working capital management of cement companies in India. Top three cement
companies i.e., Ultratech cement Ltd, Ambuja Cement Ltd, & ACC ltd is taken as sample for the study.
Data of three years from 2019 to 2021 taken into the consideration. The study uses the comparative analysis
and ratio analysis for studying the performance of the working capital of Ultratech cement Ltd, Ambuja
Cement Ltd, & ACC ltd. It finds that the performance of working capital management of above said three
companies. In this paper I have measured the liquidity position of 3 companies. And find out that different
measures have different impact on different companies, like in case of working capital turnover ratio
UltraTech cement ltd is better than other companies, and in case of current ratio ACC ltd is showing a
satisfactory result than other companies. Ambuja cement ltd is maintaining a good debtor and creditor
turnover ratio.
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1.1 INTRODUCTION
Finance is regarded as the life blood of the enterprise. It is the basic foundation of all kinds of economic
activities. Every business required finance for two purposes- for its establishment and to carry out its day-
to-day operation. To run the day-to-day operations of the business required short term funds. It is utilised
in purchase of raw material, payment of wages and other expenses etc. these funds are known as working
capital. Working capital management is significance in financial management. It plays a vital role in
keeping the wheel of the business running. It is promoted the business activities. The working capital
management concerned with the problems that arise in to manage the current assets and current liabilities
and the interrelationship between current assets and current liabilities. The goal of working capital
management is to manage a firms current assets and current liabilities in such a way that the working capital
is maintained a satisfactory level. The interaction between current assets and current liabilities are the main
them of working capital management. Effective working capital management can ensure the success of the
business while its inefficient management can lead not only loss but also the ultimate downfall of the
concern.
Cement industry is the second most important primary and basic industry for the economic development of
India, second only after iron and steel industry the cement industry is basic industry and makes an important
contribution to the development of the other factory industry, to the construction and even to the
development of agriculture. Cement is required by every industry cement is an important part of industrial
infrastructure. It provides direct and indirect employment to a large number of persons and contributes a
major part to Gross Domestic Product (GDP). The main producers of Cement in India are UltraTech Cement
Ltd, Ambuja Cements Ltd, ACC Ltd, Shree Cement Ltd, Dalmia Bharat Ltd, Birla Corporation Limited, India Cements
Ltd, The Ramco Cements Limited, Orient Cement Ltd, & Heidelberg Cement India Ltd. The study is considering
the three major companies in India i.e., UltraTech Cement Ltd, Ambuja Cements Ltd, & ACC Ltd.
The study is based on the working capital management of UltraTech Cement Ltd, Ambuja Cements Ltd, &
ACC Ltd. It covers the period from2019 to 2021. To know the present condition and efficient utilisation of
working capital of the company. It is done by preparing a comparative analysis and financial ratios analysis.
It also makes clear that which company efficiently utilizing working capital components in present days.
The analysis of the study shows the performance of the three selected companies with various working
capital measures. Not a particular company is best according to all measures. Every company is maintaining
their working capital by focusing on their strong areas and best in a particular measure. In that ACC ltd. is
showing a satisfactory liquid position with highest current and quick ratio. Ultratech cement ltd is better in
maintaining inventory and Ambuja cement ltd is better in creditor and debtor turnover ratio with having
highest payable days and lowest receivable days.
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1.2 Concept of working capital management
Working capital is the amount of capital that a business has available to meet the day to-day cash
requirements of its operations, or more specially, for financing the conversion of raw material into finished
goods, which the company sells for payment. Funds are also needed for short-term purposes for the purpose
of raw materials, payment of wages and other day-to-day expenses, etc. These funds are known as working
capital. In simple words, working capital refers to that part of the firm’s capital, which is required for
financing short-term or current assets such as cash, marketable securities, debtors and inventories. Working
capital is a valuation metric that is calculated as current assets minus current liabilities. Working capital is
also known as operating capital.
CLASSIFICATION OR KIND OF WORKING CAPITAL:

Working capital may be classified in two ways:
• ·On the basis of concept
• ·On the basis of time
On the basis of concept,

working capital is classified as gross working capital and net working capital.
The classification is important from the point of view of the financial manager.
GROSS WORKING CAPITAL
The term working capital refers to the Gross working capital and represents the amount of funds invested
in current assets. Thus, the gross working capital is the capital invested in total current assets of the
enterprises. Current assets are those assets which are converted into cash within short periods of normally
one accounting year. Example of current assets is:
Current Assets
These are the assets which can be convert into cash within one accounting period or without taking much time.
Items included in Current Assets:
• Cash in hand
• Cash at bank
• Bills receivable
• Sundry debtor
• Short-term loans and advances
• Prepaid expenses
• Accrued income
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• Work-in-progress
NET WORKING CAPITAL
The term working capital refers to the net working capital. Net working
capital is the excess of current assets over current liabilities or say:
Net Working Capital = Current Assets – Current Liabilities.
When the current assets exceed the current liabilities, the working capital is positive and the negative
working capital results when the current liabilities are more than the current assets. Current liabilities are
those liabilities which are intended to be paid in the ordinary course of business within a short period of
normally one accounting year of the current assets or the income of the business. Examples of current
liabilities are:
Current Liabilities
Current liabilities are those liabilities which have to be paid within one accounting period.
Items included in current Liabilities:
• Bills payable
• Sundry creditors
• Bank overdraft
• Provisions
• Outstanding expenses
• Pre-received income
• Short term borrowings
On the basis of time, working capital may be classified as:

• Permanent or Fixed working capital
• Temporary or Variable working capital
PERMANENT OR FIXED WORKING CAPITAL

Permanent or fixed working capital is the minimum amount which is required to ensure effective utilization
of fixed facilities and for maintaining the circulation of current assets. There is always a minimum level of
current assets which is continuously required by the enterprises to carry out its normal business operations.
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TEMPRORAY OR VARIABLE WORKING CAPITAL
Temporary or variable working capital is the amount of working capital which is required to meet the
seasonal demands and some special exigencies variables working capital can be further classified as second
working capital and special working capital. The capital required to meet the seasonal needs of the
enterprises is called the seasonal working capital. Temporary working capital differs from permanent
working capital in the sense that is required for short periods and cannot be permanently employed gainfully
in the business.
Determinants of working capital:
Working capital requirements of a concern depends on a number of factors, each of which should be
considered carefully for determining the proper amount of working capital.
• Nature of business
• Production policies
• Size of business
• Length of operating cycle
• Credit policy
• Business fluctuation
• Current asset policies
• Fluctuations of supply and seasonal variations
EXCESS OR ADEQUATE WORKING CAPITAL

It is necessary for a business to maintain adequate amount of working capital in its business. It should be
in a balanced form not more not less. Both excess as well as shortage of working capital situations are bad
for any business. However, out of the two, inadequacy or shortage of working capital is more dangerous
from the point of view of the firm.
Consequences of Excess Working Capital:

• Idle funds
• non-profitable for business
• poor Return on investment
• Overall inefficiency in the organization.
• Credit worthiness suffers due to excess working capital.
• Due to low return on investments, the market value of the shares will fall.
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Consequences Inadequate or Short Working Capital:
• Can’t pay off its short-term liabilities in time.
• Economies of scale are not possible.
• Difficult for the firm to exploit favourable market situations.
• Day-to-day liquidity hampers.
• Improper utilization the fixed assets
• ROA/ROI falls.
Working Capital Cycle
The working capital requirement of a firm depends, to a great extent upon the operating cycle of the firm.
The operating cycle may be defined as the time duration starting from the procurement of goods or raw
material and ending with the sales of realization. The length and nature of the operating cycle may differ
from one firm to another depending upon the size and nature of the firm. In a trading concern, there is a
series of activities starting from procurement of goods (saleable goods) and ending with the realization of
sales revenue (at the time of sale itself in the case of cash sales and at the time of debtors realization in case
of credit sales). similarly in case of manufacturing concern, this series starts from the procurement of raw
materials and ending with the sales realization of finished goods. In both the cases, however, there is a time
gap between the happening of the first event and the happening of the last event. This time gap is called the
operating cycle. Thus, the operating cycle of a firm consists of the time required for the completion of the
chronological sequences of some or all of the following:
1. Procurement of raw material and services.
2. Conversion of raw material into work-in-progress.
3. Conversion of work-in-progress into finished goods.
4. sale of finished goods(cash or credit)
5. Conversion of receivable into cash.
The gross operating cycle of a firm is equal to the length of the inventories
and receivables conversion periods. Thus,
Gross Operating Cycle = RMCP + WIPCP + FGCP + RCP
Where: -
RMCP = Raw Material Conversion Period
WIPCP = Work –in- Process Conversion Period
FGCP = Finished Goods Conversion Period
RCP = Receivables Conversion Period
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However, a firm may acquire some resources on credit and thus defer payments for certain period. In that
case, net operating cycle period can be calculated as below:
Net Operating Cycle Period = Gross Operating Cycle Period – Payable Deferral period
Further, following formula can be used to determine the conversion periods.

• Raw Material Conversion Period = Average Stock of Raw Material
Raw Material Consumption per day
• Work in process Conversion Period = Average Stock of Work-in-Progress
Total Cost of Production per day
• Finished Goods Conversion Period = Average Stock of Finished Goods
Total Cost of Goods sold per day
• Receivables Conversion Period = Average Accounts Receivables
Net Credit Sales per day
• Payable Deferral Period = Average Payable
Net Credit Purchase per day
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2.1 LITERATURE REVIEW
Sirasgi, Kulkarni(2021) It examine the impact of working capital management on the profitability of
Indian companies, establish a relationship between asset liquidity and relative finance liquidity in steel
industry, provide necessary measure to minimize the cash conversion cycle. It takes secondary data of five
Indian listed companies over a period of five years from 2017-2021. Analyse the data through correlation
and regression. It takes ratio analysis for establishment of relationship and use variables such as inventory
conversion period (ICP), debtor conversion (DCP), creditors conversion period (CCP), earnings before
interest and taxes (EBIT). It finds how working capital is related to profitability and its impact on
profitability.
Kumar (2017) Its main objective is study the efficiency of working capital management through financial
ratios and comparative study of working capital management between SAIL and Tata steel ltd
recommended ways and means to improve present condition. the period is taken for this study 2006-07 to
2015-16 annual report. The study shows the additional funds raised are invested in fixed assets intended of
providing necessary working capital. This study also shows the working capital turnover ratio is not
satisfactory in both the companies. so, the management may resort to effective utilization of cash and ban
balances in attractive investments or to pay back in short term liabilities.
Reddy (2016) The main objective of this study is to analysis the efficiency of working capital management
through financial ratios and comparative study of working capital management between SAIL and RINL
recommended ways and means to improve present condition. the present study taken the period of 2006-
07 to 2015-16 annual reports. This study indicates that the inventory was ineffectively turned into sales,
consequently, there is a high risk of loss due to unsalable stock. selective inventory control shall be carried
out for the components of inventory.
Lyngstadas; H. &Berg(2016) The objective of the study is to provide the empirical evidence of whether
working capital management has an effect on the profitability of small and medium scale enterprise of
Norway or not. To conduct the study it takes the data of 21075 Norwegian small and medium sized
enterprises and 84300 observation for a period of 4 years from 2010 to 2013. Return on asset, Return on
invested capital, EBIT and cash conversion cycle are taken as variables and estimated through regression
model. The finding indicates that the firm’s profitability decreases with increasing debt and increasing in
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period of economic growth. Profitability will increase if certain measures are followed like reduction of
inventory held, time spent to pay for receivable, and settling own account payable.
Yasmin (2016) The objective of the study is to find out the day-to-day finance, efficiency and trend of
working capital over the last five year of XYZ. The data is collected mainly from company balance sheet
and profit and loss account for past 5 years i.e., 2010-11 to 2015-16. The study analyses the company
decides about increment in the number of days or exceeds the number of days of a debtor to make a payment
of credit sales which is basically depends on the working capital financing policy. i.e., if the return from
short term borrowing is more than the working capital then company have no issue of increase in the date
of debtors. On the other hands if the return from short term borrowing is less than the working capital, then
company want money from debtors itself.
Singh (2013) The objective of this study is to analyses and evaluate the overall working capital management
and the trends in working capital of the selected unit. For the completion of the study mainly annual report
is taken for 2009 to 2013.The study analyses the working capital management of the TATA steel ltd which
is not much better during the period of the study. It is due to the reason the current liabilities of the company
show increasing trend during the period of the study, which is not considered better from the financial point
of view. Whereas the current assets of the company show almost constant trend. So, the management of the
company should try to control this position efficiently.
Caballero, Garcia-Teruel, Martinez-solano(2013) It examine the relationship between working capital

management and corporate performance. It takes a sample of non-financial UK companies for the period
2001-2007 and use net trade cycle (NTC), it’s square (NTC2), leverage, opportunity growth, and return on
asset to examine and estimate a model. It finds the strong support for an inverted U-shaped relation between
investment in working capital and firm performance and analysed whether the optimal working capital level
is sensitive to alternative measures of financial constraints. This optimum is lower for firms more likely to
be financially constrained.
Patel (2012) The main objective of the study is o analyses the structure of working capital and management
of working capital components by selected steel companies and also analyses the comparative position of
working capital management. the exploratory and analytical research design is used for the calculation of
gross operating cycle, net operating cycle and ratios with the help of balance sheet and profit and loss
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account during April 2006 to march 2011. The study shows TATA steel ltd has highest growth of NWC
during holding period followed by Jindal steel ltd and it is negative with JSW Steel.
Sumaira Tufail (2012) has mentioned in her study that Working capital can be considered as source of
existence for a financial body and management of working capital is regarded as one of the most essential
part of business management. Results of her study shows that aggressiveness of working capital
management policies is negatively associated with profitability. Moreover, liquidity and size of the firm
have positive relation profitability whereas debt to equity ratio is negatively correlation with profitability.
Gill (2011) It shows the factor that influence the working capital requirement in Canada. It takes 166
Canadian firm which are listed on Toronto stock exchange. This study is based on a period of 3 years from
2008 to 2010. To fulfil the purpose of the study correlational and non-experimental research design is
applied. The finding shows that the operating cycle, return on asset, firm’s growth, internationalization of
firm, and the size of the firm influence the working capital requirement in Canada. It also finds that these
factors also influence the working capital requirement of Canadian manufacturing and service industry.
Pedro, Martinez-solano (2011) It analyses the relation between working capital management and
profitability for small and medium scale enterprises (SMEs). It uses data of non-financial Spanish small
and medium sized enterprises for a period of 5 years from 2002 to 2007. It examines the concave
relationship between a firm’s operating profit and investment in working capital by measuring cash
conversion cycle (CCC), analyse ratio such as liquidity ratio and turnover ratio and leverage of the firm. It
finds that there is a non-monotonic relation between firm’s profitability and level of working capital. It
implies that a SMEs maximizes its profitability by maintaining optimal level of working capital and the
profitability decreases by any movement from the optimal level.
Rehman (2006) has studied the impact of different variables of working capital management including
Average collection period, inventory turnover in days, Average payment period, and cash conversion cycle
on net operating profitability of firm’s and concluding by indicating that there was a strong negative
relationship between these working capital financial ratios and profitability of firms.
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Mathuva (2010) It examine how the components of working capital management influence the corporate
profitability. It uses 30 listed firms on Nairobi Stock Exchange (NSE) as a sample of study for a period of
1993-2008. It examines the relation of profitability with Account Collected Period, Inventory conversion
period, Average payment Period and Cash Conversion Period by using both pooled OLS and the fixed
effects regression model. It finds a highly significant negative relationship between profitability and
account collection period, positive relationship between profitability and inventory conversion period also
in between profitability and average payment period. The findings implies that the more profitable firm
takes shorter time to collect cash from their customers, and takes longer times to pay it’s creditors.
Mohamad, Mohd Saad (2010) This study provides an empirical evidence about working capital
management and its effect to the performance of Malaysia listed companies from the perspective of market
valuation and profitability. In this 172 listed companies are randomly picked as sample. Study is made for
a period of five years from 2003 to 2007. It examines the effect of working capital components such as
cash conversion cycle, current asset to total asset ratio, current ratio debt to asset ratio to the firm’s
performance and also look after the firm’s value that is Tobin Q and profitability that is return on asset
(ROA), Return on invested capital (ROIC). Used some statistical tools such as multiple regression analysis
to determine the working capital variables with firms’ performance. It finds a negative association
between working capital variables with firm’s performance and suggest to manage working capital
requirement for the improvementin firm’s market value and profitability.
Nazir, Afza (2009) It determines the traditional relationship between firm’s profitability with the working
capital management. This study analyses working capital policies of 204 non-financial firm from 17
various industrial sector in Pakistan for a period of 7 years from 1998 to 2005. To fulfil the purpose of the
study various ratio such as current asset ratio, quick asset ratio, return on investment & leverage of the firm
are calculated. Statistical tools such as f-test, t-test, regression analysis, are also being calculated to
determine the relationship between working capital management and firm’s return in Pakistan. It finds that
a negative relationship between profitability measures of firm and degree of aggressiveness of working
capital investment and financing policies. The firm report negative return if they follow an aggressive
working capital policy.
Lazaridis, Tryfonidis (2006) This study examines the relationship between the working capital
management and profitability of the corporation. It takes 131 companies which are listed in the Athens
Stock Exchange as it’s sample for the period of 2001 to 2004. It uses cash conversion cycle as a main
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measure to quantify profitability. Size of the company is taken as another variable. For establishment of
relationship among variables statistical methods such as correlation and regression etc. are analysed along
with ratio analysis. It finds that profit can be earned more if the manager handle cash conversion cycle
properly and maintain account payable, account receivable and inventory to a optimum level.
Lamberson (1995) It shows how the change in the level of economic activity affects the working capital
position of a small firm. Fifty small firm’s financial statements for a period of 12 years from 1980 to 1991
are studied for this purpose. Various ratios such as current ratio, quick ratio, inventory to total asset, current
asset to total asset ratio are computed for each years for individual firms. After that correlation coefficient
and t-test was also calculated to determine the relation between the change in level of economic activity
and working capital position and to measure the significance respectively. It finds that there is a slight
increment in liquidity of the firm during economic expansion but no noticeable change during economic
slowdown, and the investment in working capital is stable over the period of the study.
Fazzari, Petersen (1993) It shows the new tests for finance constraints on investment by emphasizing the
often-ignored role of working capital as use and source of fund. It takes a sample from low dividend firms
for a period of 1970-1979 and shows the relation of working capital and fixed investment through
regression. It analyses conventional regressions of investment on cashflow and regressions with working
capital as a source and use of funds. It finds cashflow may simply proxy shifts in investment demand and
also assess the economic importance of financial constraints for a broader class of issues like the finance
effects on the growth of the firm.
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3.1 OBJECTIVE
1. To make a comparative study of working capital management of Ultratech cement ltd, Ambuja
cement ltd and ACC ltd.
2. To determine the ration relating to working capital with the help of financial statements.
3. To analyse the liquidity position of the 3 firms for last 3 years.
3.2 RESEARCH METHODOLOGY
Selection of sample
Top three cement companies as per the sale of 2021 have been selected for the study.
Those Companies are
• Ultratech cement ltd

• Ambuja cement ltd
• ACC ltd
Collection of data
This study is completely based on secondary data. Data are collected from secondary sources like
• Website of Ultratech cement ltd

• Annual report of 3 years from 2019-2021
• Website of ACC ltd
• Annual report of 3 years from 2019 to 2021
• Website of Ambuja cement ltd
• Annual report of 3 years from 2019 to 2021
research design
This is a descriptive and analytical study.
Tools used
• Ratios analysis relating to working capital

• Comparative statement analysis
• Graphical presentation
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3.3 Assumption
• No of days in a year is 365.

• All purchases are considered as credit purchase.
• All sales are considered as credit sales.
3.4 Limitation of the study
• The data is completely based on secondary data. So, it is difficult to know the accuracy.
• Only 3 companies have been taken into consideration.
• Only three years of data have been used. so, it is difficult to judge the country’s all cement
company’s overall performance.
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4.1 Company profile
(A) ULTRATECH CEMENT
Ultra Tech Cement limited founded by Mr. Kumar Mangalam Birla. It established in the year 1983. This
company is based on Mumbai. It is a part of Aditya Birla group.it produces grey cement, ready-mix
concrete, and white cement. UltraTech is the largest manufacturer in India.
Date of Establishment 1983
Headquarter Mumbai
CEO/Managing Director K K Maheshwari
Revenue 43,977.02 crore
Operating income 8060.07 crore
Net profit 5342.07 crore
Total asset 80,416.10 crore
Total equity 43,352 crore
Company Status Active
Website www.ultratechcement.com
VISION :
The main aim of this company is to be India’s largest cement manufacturing unit at a single location.
It focuses on consumer’s
•Customization
• consistency in quality
•Product range
•Cost competitiveness
• Employee empowerment
MISSION :
UltraTech as a brand embodies 'strength', 'reliability' and 'innovation'. Together, these
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attributes inspire engineers to stretch the limits of their imagination to create homes, buildings
and structures that define the new India.
(B) Ambuja cement
Ambuja Cements Ltd, established in the year 1983. It is a member of Holcim - global leader in innovative
and sustainable building solutions, is among the leading cement companies in India and is known for its
hassle-free, home-building solutions.
Ambuja Cements Limited, formerly known as Gujarat Ambuja Cement Limited, is a major
Indian cement producing company. The Group markets cement and clinker for both domestic and export
markets.
Type Public
BSE: 500425
Traded as
NSE: AMBUJACEM
Industry Building materials
Founded 1983
Headquarters Mumbai, Maharashtra, India
Key people Suresh Kumar Neotia, Founder

Narotam Sekhsaria,Co-Founder, Chairman
Neeraj Akhoury, Managing Director & CEO
Products Cement
Revenue ₹13964 crore (2021)
Operating income ₹2850 crore(2021)
Net income ₹2080 crore(2021)
Total assets ₹28173.44 crore(2021)
Total equity ₹22207 crore(2021)
Parent Adani Group
Website www.ambujacement.com
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Partnership
The company has entered into a strategic partnership with Holcim, the from 2006.
Currently Holcim holds 61.62% of the shares in Ambuja Cements.[6] On 14 April 2022, Holcim announced
that it would exit from the Indian market after 17 years of operations as part of a strategy to focus on core
markets, and listed its stakes in Ambuja Cements and ACC for sale. On May 15, 2022, Adani
Group acquired Holcim's stake in Ambuja Cements and ACC for US$10.5 billion.
vision
To be the most sustainable and competitive company.
Mission
To create value for all
• Delighted customers
• Inspired employees
• Enlightened partners
• Energised society
• Loyal shareholders
• Healthy environment
REWARDS
• Best Mobile Loyalty Program.
• Ambuja Abhimaan.
• ‘DSIJ 2021 CFO Award’ in Best Women CFO category for our Chief Financial Officer (CFO),
Rajani Kesari.
• Two awards for Ambuja Cement Foundation (ACF) at the ICC Impact Awards 2021.
• Best Cement Brand – East’ award by Times Business Awards 2021.
• Gold Award in Training Excellence 2020.
• ICAI Awards for Excellence in Financial Reporting 2020-21.
(C) ACC LTD
ACC Limited (Formerly The Associated Cement Companies Limited) is an Indian cement producer,
Incorporated in 1936, ACC Limited (ACC), is one of the leading players in the Indian building materials
market with a pan-India presence. It is a part of the Holcim Group. On 1 September 2006, the name of The
Associated Cement Companies Limited was changed to ACC Limited. The company had been established
in Mumbai, Maharashtra on 1 August 1936.
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Type Public
BSE: 500410
Traded as
NSE: ACC
Industry Building materials
Founded 1 August 1936; 85 years ago
Headquarters Mumbai, Maharashtra, India
Key people N. S. Sekhsaria (Chairman)

Neeraj Akhoury (MD & CEO)
Products Cement
Revenue 16151.35crore(2021)
Net income 1820.27 crore (2021)
Total assets 20919 crore (2021)
Total equity 14228.43 crore (2021)
Parent Adani Group
Website www.acclimited.com
ACC CEMENT PRODUCTS
• Ordinary Portland Cement (OPC),
• Portland Pozollana Cement (PPC),
• Portland Slag Cement (PSC) and
• Composite Cement and
• Ready Mix Concrete (RMX).
SCOPE OF ACC
ACC has experienced in mining, largest user of limestone. it is also has the biggest customers of the
domestic coal industry, of Indian Railways.
• 33.05 MTPA Installed cement capacity
• 17 Cement plants
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• 9 Captive power plants
• ~6,400 Employees
• 56,000 Channel partners.
ACC ltd Subsidiaries
The following are the subsidiaries of ACC ltd
• ACC Mineral Resources Limited
• Bulk Cement Corporation (India) Limited
• Lucky Minmat Limited
• Singhania Minerals Private Limited

These comprise Bulk Cement Corporation (India) Limited which is a bulk cement distribution facility;
ACC Mineral Resources Limited which was set up to explore and supply key mineral resources of coal and
gypsum. Lucky Minmat Limited, National Limestone Company Private Limited and Singhania Minerals
Private Limited which are engaged in supply of limestone.
Parent Company
ACC Cement became a part of the Holcim Group, Switzerland, in 2005 Subsequent to the merger of
Lafarge and Holcim in 2015, ACC became integral to LafargeHolcim (LH)
• 50.05% of ACC Ownership by Ambuja Cements Ltd.
• 4.48% Owned by Holcim Group
24
5.1 ANALYSIS AND INTERPRETATION
As the data are secondary in nature the data needed for analyse the working capital management of
companies taken from the companies annual report. I consider balance sheet and statement of profit and
loss for 3 years from 2019 to 2021 for calculation purpose. In this analysis and interpretation part I am
going to calculate working capital through the comparative statement and ratio analysis and various graphs.
ULTRATECH CEMENT LTD.
GROSS WORKING CAPITAL
Gross working capital is the summation of all current assets of the company without considering the current
liabilities. Thus gross working capital is equal to the total current assets.
Current assets are those assets which can be converted into cash within one accounting period or in a short
period of time.
Here in Ultratech Cement Ltd
• the gross working capital for 2019 is 12623

the gross working capital of Ultratech Cement Ltd is increasing every year. In 2019 it is 12623 crore
where in 2020 it is increased to 14714, then in 2021 it again increased to 22983 crores.
NET WORKING CAPITAL
After calculating gross working capital, net working capital is calculated by deducting total current
liabilities from total current asset. Here we not only consider current assets of the company but also
consider the current liabilities.
total current net working

year total GWC liability capital
2019 12623 14540 -1917
2020 14714 14263 451
2021 22983 19588 3395
GRAPH OF NET WORKING CAPITAL OF ULTRATECH CEMENT LTD ON THE STUDY

PERIOD:-
25
4000
3000
2000
1000
0
2019 2020 2021
-1000
-2000
-3000
INFERENCE:- Net working capital of this company increased rapidly from 2019 to 2021. In 2019 the
value of net working capital shows a negative result of (1917). Then in 2020 the net working capital
increased to 451 and show a positive result. After that in 2021 the net working capital increased to 3395.
There is an increasing trend in net working capital.
SIZE WISE ANALYSIS OF WORKING CAPITAL COMPONENTS OF

ULTRATECH CEMENT LTD
% % Loans Total
O O & % Current Net
% Sund % f Other f % Other Of Liabiliti Worki
Of ry Of Cash G Curren G Of Financi G es & ng
Inven Gw Debt Gw & w t w Invest Gw al w Total Provisi Capit
year tory c or c Bank c Assets c ments c Assets c Gwc ons al
1 2
2019 3787 30 2353 19 655 5 1400 1 1515 12 2909 3 12623 14540 -1917
1 2 14714
2020 3834 26 1848 13 310 2 1505 0 4244 29 2971 0 14263 451
1
2021 3722 16 2286 10 1877 8 1635 7 10812 47 2660 2 22983 19588 3395
1
mean 3781 24 2162 14 947 5 1513 9 5524 29 2847 8 16773 16130 643
26
S.D. 56 7 274 5 823 3 118 2 4779 18 165 6 5478 2998 2661
1
min. 3722 16 1848 10 310 2 1400 7 1515 12 2660 2 12623 14263 -1917
1 2
max. 3834 30 2353 19 1877 8 1635 1 10812 47 2971 3 22983 19588 3395
INFERENCE:- Investment holds major portion in total current asset of Ultratech Cement Ltd. On an
average investment holds 29% of total current assets whereas, inventory holds 24% portion. Sundry debtor
and cash and bank balance holds 14% & 5% portion respectively. Other current assets also holds 9% portion
and loans and advances holds 18% portion of current assets. Total current assets, on an average is Rs. 16773
and total current liability is Rs.16130. After deducting current liabilities from current assets we get the final
result of net working capital is of Rs. 643.
COMPARATIVE ANALYSIS OF WORKING CAPITAL COMPONENTS OF

ULTRATECH CEMENT LTD.
ULTRATECH CEMENT LTD
% %
PARTICULARS 2019 2020 change 2020 2021 change
Current assets
Inventories 3787.47 3833.88 1 3833.88 3722.05 -3
Financial Assets
Investments 1514.85 4243.69 180 4243.69 10812.01 155
Trade receivables 2353.19 1848.28 -21 1848.28 2285.99 24
Cash and cash equivalents 423 140.06 -67 140.06 118.58 -15
Bank balance other than cash and cash
equivalents 232 170.46 -27 170.46 1757.97 931
Loans 1933.47 1903.53 -2 1903.53 897.18 -53
Other financial assets 976.83 1068.93 9 1068.93 1762.52 65
Other current assets 1400.49 1505.32 7 1505.32 1634.99 9
Total current assets 12622.77 14714.15 17 14714.15 22982.92 56
Current liabilities
Financial liabilities
Borrowings 3586.82 3953.21 10 3953.21 4230.15 7
Trade payables
Total outstanding dues of smes 20.31 53.21 162 53.21 65.26 23
27
Total outstanding dues of creditors other
than smes 2951.02 2985.57 1 2985.57 4314.92 45
Other financial liabilities 3230.98 2685.79 -17 2685.79 5209.76 94
Other current liabilities 3728.85 3449.92 -7 3449.92 4549.21 32
Provisions 581.94 534.51 -8 534.51 506.76 -5
Current tax liabilities(net) 439.67 601.09 37 601.09 711.7 18
Total current liabilities 14539.59 14263.3 -2 14263.3 19587.76 37
INFERENCE:- This table shows the comparative analysis of working capital components of Ultratech
Cement Ltd. The current assets of 2019 is compared with the current assets and current liabilities of 2020
and then the components of 2020 is compared with 2021. In the comparative analysis between 2019 and
2020 the investment shows the major change of 180%. Where as the inventory shows a negligible change
of 1%. Trade receivable decreased to 21% that means the collection made from debtors. But in case of cash
and bank balance it is not showing a good result. Cash decreased to 67% where bank balance decreased to
27%. In current liabilities the trade payables increased to 162% from 2019 to 2020. Trade receivable
decreased and trade payables increased it seems that the company is adopting a method, i.e. purchase in
credit and sale in cash which can help in increase cash balance in the company. In this the total current
assets increased 17% and current liabilities shows a decreased balance of 2%.
Similarly in the comparative analysis between 2020 and 2021 the investment shows an increased balance
of 155%. Bank balance shows a terrific increased of 931% this is the major change in current assets. Due
to the method used in 2020 the result shows a terrific change in 2021 and the total current assets also
increased to 56%. In current liabilities it also increased to 37%.
RATIO ANALYSIS
Table showing ratios relating to working capital of Ultratech Cement Ltd.
Ratio 2019 2020 2021 mean s.d. min max

Current Ratio 0.868 1.032 1.173 1 0.152644 0.868 1.173
Quick Ratio 0.643 0.772 1.065 1 0.216246 0.643 1.065
Inventory Turnover
Ratio 40.24 31.61 34.36 35 4.408586 31.61 40.24
Working Capital
Turnover Ratio -20.87 90 12.72 27 56.85162 -20.87 90
Debtor Turnover
Ratio 16.99 21.99 18.89 19 2.523886 16.99 21.99
Creditor Turnover
Ratio 2.28 2.24 1.68 2 0.33546 1.68 2.28
28
Average Payment Period 160.1 162.9 217.3 180 32.21602 160.1 217.3
Average Collection Period 21.48 16.6 19.32 19 2.445349 16.6 21.48
INFERENCE:- Average inventory turnover ratio of Ultratech cement ltd is 35 during 3years of the study
period. It is highest in the year 2019 & lowest in the year 2020. The average working capital turnover ratio
is 27. It is highest in the year 2020 and lowest in the year 2019, in 2019 it is showing a negative result of -
20.87. The collection period is 19 on an average, but fluctuating over the study period. The average
payment period is very high as compared to average collection period. The average payment period during
the study period is 180. It is highest in the year 2021 that is 217. The current ratio of the company is not
quite satisfactory in the first year of the study period but then it increased in 2nd and 3rd year it represents
an improvement in liquidity position of the company. As per the banker’s rule of thumb the company having
the current ratio of 2:1 that is current asset is double of current liability is considered as a good liquidity
position. But it should not be followed blindly. The quick ratio on an average is 1 during the three years of
the study. It is highest in the year 2021 and lowest in the year 2019. That means it is increasing during the
study period.
Current Ratio:-
YEAR CURRENT ASSET CURRENT LIABILITIES CURRENT RATIO.

2019 12622 14540 0.868088
2020 14714 14263 1.03162
2021 22982 19588 1.173269
CURRENT RATIO.
1.4
1.2
1.173269
1
1.03162
0.8 0.868088
0.6
0.4
0.2
0
2019 2020 2021
INFERENCE:- this chart and graph shows the current ratio of the UltraTech Cement Ltd. In the first
year if the study period shows a balance of current asset is 12622 and the total current liabilities is 14540.
29
That results in a current ratio of 0.868. Then in 2020 the total current assets increased that leads to a
increase in current ratio. Current ratio increased to 1.03. then in 2021 both current assets and current
liabilities increased. The total current assets in 2021 is 22982 and total liabilities is 19588 that result in a
current ratio of 1.173. The three years study of current ratio of UltraTech cement ltd shows a positive
increment in current ratio that is a good sign for the company. The ratio increased every year that’s
represents an improvement on liquidity position of the company.
Quick Ratio:-
quick quick
YEAR asset quick liability ratio
2019 8799 13694 0.642544
2020 10837 14039 0.771921
2021 19138 17967 1.065175
quick ratio
1.2
1 1.065175
0.8
0.771921
0.6
0.642544
0.4
0.2
0
2019 2020 2021
INFERENCE:- This chart shows the quick ratio of the company. The quick ratio of the company is quite
satisfactory. It is less in the first year of the study period that is in 2019. In 2019 the quick ratio is 0.64 then
in 2020 and in 2021 it is increased to 0.77 and 1.065 respectively.
Efficiency Ratio=
Inventory Turnover Ratio
inventory turnover
YEAR net sale Avg. inventory ratio
2019 39999 994 40.24044
2020 40649 1286 31.60886
2021 43188 1257 34.358
30
inventory turnover ratio
45
40
35 40.24044
30 34.358
31.60886
25
20
15
10
5
0
2019 2020 2021
INFERENCE:- it represents the average number of days a company holds its inventory before selling it.
It is calculated by dividing average inventory by total sales. Inventory turnover ratio for the year 2019 is
more as compared to 2020 and 2021 the days in 2019 is 40.24 where in 2020 and in 2021 it is 31.61 and
34.36 days respectively.
Working Capital Turnover Ratio
working capital turnover

YEAR net sale net working capital ratio
2019 39999 -1917 -20.8654
2020 40649 451 90.13082
2021 43188 3395 12.72106
working capital turnover ratio

100
80 90.13082
60
40
20
-20.8654 12.72106
0
2019 2020 2021
-20
-40
INFERENCE:- The working capital turnover ratio of the company shows result in 2019, 2020 and in 2021
is -20.87, 90.13, 12.72 respectively. In 2019 it shows a negative result because of the networking capital of
the firm. Due to increase in current liability the net working capital shows a negative balance that affects
the working capital ratio and shows a very low working capital ratio. This may be happened because of
31
low sells. When sale is less the requirement in working capital is also less. But it manages to regain and
recover the position and in 2020 it shows a result of 90.13, which is very high. The high rate of working
capital ratio is also not good for the organisation. Then in 2021 the company’s net working capital increased
to 3395 and that leads to decrease in working capital ratio to 12.72. Now in the current scenario the working
capital position of the company is in a good level.
Debtor Turnover Ratio
YEAR net sale sundry debtor debtor turnover ratio

2019 39999 2353 16.99915
2020 40649 1848 21.99621
2021 43188 2286 18.89239
debtor turnover ratio

25
20 21.99621
18.89239
15 16.99915
10
0
2019 2020 2021
Average collection period
debtor turnover avg. collection

YEAR net sale sundry debtor ratio period
2019 39999 2353 16.99915 21.47166
2020 40649 1848 21.99621 16.59377
2021 43188 2286 18.89239 19.31995
INFERENCE:- The debtor turnover ratio, which shows that the number of times the debtors turned over
during the period of the study from 2019 to 2021. The debtor of the company increasing that represents that
the company is maintaining debtors properly.
In average collection period it shows the company’s effectiveness to collecting its receivables or money
owed by customers. In the chart it shows that in 2019 the average collection period is 21.47 where it
decrease to 16.59 days in 2020 and again increased to 19.32 days in 2021.
32
Creditor Turnover Ratio
net credit annual

YEAR purchase sundry creditor creditor turnover ratio
2019 6719 2951 2.276855
2020 7157 3197 2.238661
2021 7239 4315 1.677636
creditor turnover ratio

2.5
2 2.276855 2.238661
1.5
1.677636
1
0.5
0
2019 2020 2021
Average Payment Period
net credit annual creditor turnover Avg. payment

YEAR purchase sundry creditor ratio period
2019 6719 2951 2.276855 160.3088
2020 7157 3197 2.238661 163.0439
2021 7239 4315 1.677636 217.568
INFERENCE:- The creditor turnover ratio of the company is very low thus the average payment period is
very high as compared to average collection period. The average collection period for 2019 is 160 days
then it increased each year. In 2020 it shows a result of 163 days and in 2021 it again increased to 218 days.
The increment per year shows that may be the company don’t have a sufficient level of liquidity to pay the
debt or the company is storing its assets for increasing its liquidity position or any other current investment
purpose. In another way It also clarifies that the company is very trust worthy so the creditors giving them
credit for such a long period of time and it can pay to its creditor within a period without any bad.
AMBUJA CEMENT LTD.
• The gross working capital for 2019 is 6848

33
NET WORKING CAPITAL
total
year current asset total current liabilities net working capital
2019 6823 4447.42 2375.58
2020 4431 4543.53 -112.53
2021 6775 5357.75 1417.25
3 1417.25
-1122.53
1 2375.58
-500 0 500 1000 1500 2000 2500

1 2 3
Series1 2375.58 -112.53 1417.25
INFERENCE:- Net working capital is the result after deducting total current liabilities from the total
current assets. In AMBUJA CEMENT ltd in 2019 the total current asset is Rs. 6823 and total current
liabilities is Rs. 4447.42, thus the net working capital is Rs. 2375.58. In 2020 the total current asset is Rs.
4431 and total current liabilities is Rs. 4543.53, then the net working capital shows a negative result of
Rs. 112.53. In 2021 the total current asset is Rs. 6775 and total current liabilities is Rs. 5357.75, thus the
net working capital is Rs 1417.25. the net working capital shows positive result every year except in
2020. Here in the graph the horizontal axis 1 represents the year 2019, 2 represents the year 2020 and, 3
represents the year 2021. There is a terrific increase in net working capital in 2021.
SIZE WISE ANALYSIS IF WORKING CAPITAL COMPONENTS OF AMBUJA

CEMENT LTD
total
loans& current
Sundr Cas other other total liabilities net
Inven % of y % of h& % of financi % of curren % of & workin
- GW debto GW ban GW al GW t GW GW provisio g
year tory C r C k C assets C assets C C ns capital
34
470 682 2375.5
2019 954 14 513 8 0 69 233 3 423 6 3 4447.42 8
292 443 -
2020 747 17 192 4 4 66 83 2 460 10 1 4543.53 112.53
416 677 1417.2
2021 1464 22 293 4 3 61 210 3 620 9 5 5357.75 5
mea 392 601
n 1055 18 333 5 9 65 175 3 501 8 0 4783 1227
136
S.D. 369 4 164 2 911 4 81 1 105 2 7 500 1255
292 443
min. 747 14 192 4 4 61 83 2 423 6 1 4447 -113
470 682 2375.5
max. 1464 22 513 8 0 69 233 3 620 10 3 5357.75 8
INFERENCE :- Among all current assets of Ambuja Cement Ltd cash & bank balance holds major portion
that is 65%. On an average Inventory, sundry debtors, loans and advances, other current assets holds
18%,5%,3%,8%, portion of total current assets respectively. Total current assets of this company on an
average is Rs. 6010
And total current liability is Rs.4783. after deducting the amount of current liabilities from the current assets
we got net working capital of Rs. 1227.
COMPARATIVE ANALYSIS OF WORKING CAPITAL COMPONENTS OF

AMBUJA CEMENT LTD
AMBUJA CEMENT
% %
particulars 2019 2020 change 2020 2021 change
Current Assets
Inventories 954 747 -22 747 1464 96
Financial Assets
Trade Receivables 513 192 -63 192 293 53
Cash And Cash Equivalents 4513 2717 -40 2717 3985 47
Bank Balance Other Than Cash And Cash
Equivalents 187 207 11 207 178 -14
Loans 4.5 4.43 -2 4.43 4.76 7
Other Financial Assets 228.87 78.82 -66 78.82 204.8 160
Other Current Assets 423.19 460.35 9 460.35 620 35
6823.35 4406.06 -35 4406.06 6750 53
Non-Current Assets Classified As Held Sell 24.75 24.75 0 24.75 25 1
Total Current Assets 6848.1 4430.81 -35 4430.81 6775 53
Current Liabilities
35
Financial Liabilities
Trade Payables
Total Outstanding Dues Of Smes 1.09 2.46 126 2.46 7.57 208
Total Outstanding Dues Of Creditors Other Than
934.89
Smes 878.44 -6 878.44 1136.83 29
Lease Liabilities 27.88 27.88 42.9 54
Other Financial Liabilities 782.04 737.77 -6 737.77 879.24 19
Other Current Liabilities 1737.81 1911.97 10 1911.97 2040 7
Provisions 8.53 3.85 -55 3.85 8.92 132
Current Tax Liabilities(Net) 906.22 981.16 8 981.16 1242 27
Total Current Liabilities 4447.42 4543.53 2 4543.53 5357.75 18
INFERENCE: - The table shows a comparative analysis of working capital components of Ambuja
cement ltd. In the period from 2019 to 2021. At the time of comparison between 2019 and 2020 the
current asset shows a decreasing result of 35% and total current liabilities shows an increasing result of
2%. Trade receivable, cash, & other financial assets decreased to 63%, 40%, 66% respectively. And
current liabilities like provisions, and other financial liabilities decreased. But the trade payables
increased to 126% that result an increase in current liabilities to 2%. It represents that the liquidity
position of the company in 2020 is not good.
In 2021 the inventory position is increased and also trade receivables, cash and other financial assets
increased to 96%,53%,47%,160% respectively that results an increase in total current assets to53%. Total
current liabilities also increased but not more that is 18%. It reflects that that liquidity position of the
company is coming to a balanced position.
RATIO ANALYSIS
Table showing ratios relating to working capital of AMBUJA CEMENT LTD
RATIO
WORKIN
year G CREDITO
QUIC INVENTO CAPITAL DEBTOR R AVG. AVG.
CURRE K RU TURN TURNOV TURNOV TURNOV COLLECTI PAYME
NT RATI OVER ER ER ER ON NT
RATIO O RATIO RATIO RATIO RATIO PERIOD PERIOD
2019 1.53 1.32 13.78 4.9 22.74 1.14 16.05 320
2020 0.97 0.8 14.51 -101 59.22 1.22 6.16 299
2021 1.3 0.99 12.63 9.8 47.66 1.34 7.66 272
mean 1 1 14 -29 43 1 10 297
0.26 5.330012 24.062
S.D.
0.2815 31 0.94779 62.6039 18.6433 0.10066 508 4
36
min. 0.97 0.8 12.63 -101 22.74 1.14 6.16 272
max. 1.53 1.32 14.51 9.8 59.22 1.34 16.05 320
INFERENCE:- Average inventory turnover ratio of Ambuja cement ltd is 14 during 3years of the study
is -29. It is highest in the year 2021 and lowest in the year 2020, in 2020 it is showing a negative result of
-101, that is not a good sign for the company. The collection period is 10 on an average, but fluctuating
over the study period. The average payment period is very high as compared to average collection period.
The average payment period during the study period is 297. It is highest in the year 2019 that is 320, and
lowest in the year 2021 that is 272. The current ratio of the company is not quite satisfactory in the second
year of the study period but then it increased in 3rd year to 1.3. the average of the current ratio is showing a
result near about 1. As per the banker’s rule of thumb the company having the current ratio of 2:1 that is
current asset is double of current liability is considered as a good liquidity position. As per that the liquidity
position of the company is not satisfactory. The quick ratio on an average is 1 during the three years of the
study. It is highest in the year 2019 and lowest in the year 2020.
CURRENT RATIO
total total current

year current asset liabilities CURRENT RATIO
2019 6823 4447.42 1.534148
2020 4431 4543.53 0.975233
2021 6775 5357.75 1.264523
CURRENT RATIO
2
1.534147888
1.5
1.264523354
0.975232914
1
0.5
0
2019 2020 2021
CURRENT RATIO
INFERENCE:- Here the chart shows the current ratio of Ambuja cement ltd. In 2019 the total current
assets of the company is Rs. 6823 and total current liability is Rs. 4447.42 thus after deducting total current
37
liability from the total current asset the current ratio shows a result of 1.53, which represent a good liquidity
position of the company. In 2020 the loans and other financial assets decreased that leads to a decreased in
current assets and in result the current ratio also decreased to 0.97. then in 2021 again the current ratio
increased to 1.26. that shows an increasing trend and represents an improvement in liquidity position of the
company. In this stage the company should increase its current assets or should try to decrease its current
liabilities to have a better liquidity position.
QUICK RATIO
year Quick asset quick liabilities quick ratio

2019 5882 4447.42 1.322565
2020 3656 4543.53 0.804661
2021 5280 5357.75 0.985488
quick ratio
1.4
1.2 1.322564543
1
0.985488311
0.8
0.804660693
0.6
0.4
0.2
0
2019 2020 2021
quick ratio
INFERENCE:- As the chart and graph shows this is the quick ratio of Ambuja cement ltd.. here the ratio
shows a fluctuating result through the study period. In 2019 the result is high that is 1.32, and in 2020 it
shows a lowest balance that is 0.80. however the companies quick liquid position is very good. In 2021 also
it is increased to 0.99 that is also a good sign for the company.
38
INVENTORY TURNOVER RATIO
OPENING CLOSING AVG.. INVENTORY

year INVENTORY INVENTORY INVENTORY NET SALE T.O. RATIO
2019 874 820 847 11668 13.77568
2020 820 747 783.5 11372 14.51436
2021 747 1464 1105.5 13965 12.63229
INVENTORY
15
TURNOVER RATIO
14.51435865
14.5
14
13.77567887
13.5
13
12.63229308
12.5
12
11.5
2019 2020 2021
INFERENCE:- The inventory turnover ratio is very high in this company. It is the highest in 2020 Then
after in 2021 the inventory turnover ratio shows a decreased result.
If we calculate the days in which inventory has been disposed off or sold completely then the result of 2019
is 26 days, in 2020 is 24 days and in 2021 it is 28 days.
WORKING CAPITAL TURNOVER RATIO
year NET SALE net working capital WORKING CAPITAL T.O. RATIO
2019 11668 2375.58 4.911643
2020 11372 -112.53 -101.057
2021 13965 1417.25 9.85359
39
20
4.91164263 9.853589698
0
2019 2020 2021
-20
-40
-60
-80
-100
-101.0574958
-120
WORKING CAPITAL T.O. RATIO
INFERENCE:- As seen from the above table the ratio has decreased from 4.91 in 2019 to -101 in 2020.
It shows a negative result in 2020 due to decrease in total current asset leads to a negative result in net
working capital and affect the working capital ratio. But then in 2021 the ratio is increased to 9.85. current
assets in 2021 increased due to increased in more current financial assets and other components in current
assets. The present scenario of the companies working capital turnover ratio is improving.
DEBTOR TURNOVER RATIO
D.T.O.
year NET SALE DEBTOR RATIO
2019 11668 513 22.74464
2020 11372 192 59.22917
2021 13965 293 47.66212
DEBTOR TURNOVER
RATIO
70
60
50
59.22916667
40 47.66211604
30
20
22.74463938
10
0
2019 2020 2021
40
AVERAGE COLLECTION PERIOD
D.T.O. AVG. COLLECTION

year NET SALE DEBTOR RATIO PERIOD
2019 11668 513 22.74464 16.04774
2020 11372 192 59.22917 6.162504
2021 13965 293 47.66212 7.658074
INFERENCE:- In the first chart the Ambuja cement ltd.’s debtor turnover ratio is shown. As per the
chart the debtor turnover ratio in 2019 is 22.7 which is the lowest among the three years of the study period.
In this year the net sale is almost nearer to the other three years but the debtor is more that is 513. So that
leads to a decrease in debtor turnover ratio, and increase in average collection period. Then in 2020 the
debtor decrease to 192 and the turnover ratio increased to 59.22. the average collection period decrease to
6.16 which is very low as compared to the avg. payment period. In 2021 the debtor is more as compared to
the year 2020. In 2021 the debtor is 293, debtor turnover ratio is 47.66 and the average collection period is
7.66. the slightly increased.
CREDITOR TURNOVER RATIO
year PURCHASE CREDITOR CREDITOR T.O. RATIO

2019 1065 936 1.14
2020 1078 881 1.22
2021 1534 1144 1.34
creditor turn over ratio

1.4
1.35
1.3 1.34
1.25
1.2
1.22
1.15
1.1 1.14
1.05
1
2019 2020 2021
41
AVG. PAYMENT PERIOD
CREDITOR T.O. AVG. PAYMENT

year PURCHASE CREDITOR RATIO PERIOD
2019 1065 936 1.14 320
2020 1078 881 1.22 299
2021 1534 1144 1.34 272
INFERENCE:- The first table shows the creditor turnover ratio. And the second table shows the average
payment period. The creditor turnover ratio is increasing per year. In the course of business operation, a
firm has to make credit purchase and incur short term liabilities. The creditor turnover ratio of the company
is very low, that leads to a higher average payment period. In 2019 the creditor turnover ratio is 1.14 and
the avg. payment period is 320. In 2020 the turnover ratio increased to 1.22 and leads to a decrease in
payment period of 299 days. Then after in 2021 the turnover ratio shows a result of 1.34 and again a decrease
in average payment period of 272 days.
ACC LTD
GROSS WORKING CAPITAL:-
• Gross working capital for 2019 is 7423.

The gross working capital of ACC Cement Ltd increased every year. In 2019 it shows Rs. 7423 whereas
in 2020 it shows Rs. 8330 then in 2021 if shows a result of Rs. 10246.
NET WORKING CAPITAL:-
total total current liabilities &

year Current assets provisions net working capital
2019 7423 4684 2739
2020 8330 4791 3539
2021 10246 5992 4254
42
net working capital 4254
4500
4000 3539
3500
3000 2739
2500
2000
1500
1000
500
0
1 2 3
INFERENCE:-Net working capital is the result after deducting total current liabilities from the total
current assets. In ACC ltd in 2019 the net working capital is Rs. 2739, in 2020 it increased to Rs.3539, then
in 2021 it again increased to Rs. 4254. Here in the graph horizontal axis 1 represents the year 2019, 2
represents the year 2020 and, represents the year 2021. Due to increase in net capital every year the line
chart shows an increasing trend.
SIZE WISE ANALYSIS OF WORKING CAPITAL COMPONENTS OF ACC LTD
Total
Loans& Current
% Sundr % Cas % Other % Other % Liabilities Net
Inven Of y Of h& Of Financi Of Curren Of & Workin
t Gw Debto Gw Ban Gw al Gw t Gw Total Provision g
year Ory c r c k c Assets c Assets c Gwc s Capital
453
2019 1141 15 628 8 8 61 302 4 803 11 7423 4684 2739
589
2020 900 11 452 5 1 71 326 4 687 8 8330 4791 3539
740 1024
2021 1273 12 489 5 4 72 268 3 810 8 6 5992 4254
mea 594
n 1105 13 523 6 4 68 299 4 767 9 8666 5156 3511
143
S.D. 189 2 93 2 4 6 29 1 69 2 1441 726 758
453
min. 900 11 452 5 8 61 268 3 687 8 7423 4684 2739
740 1024
max. 1273 15 628 8 4 72 326 4 810 11 6 5992 4254
43
INFERENCE: -Among all current assets of ACC Cement Ltd cash & bank balance holds major portion
that is 68%. On an average Inventory, sundry debtors, loans and advances, other current assets holds
13%,6%,4%,9%, portion of total current assets respectively. Total current assets of this company on an
average is Rs. 8666
And total current liability is Rs.5156. after deducting the amount of current liabilities from the current assets
we got net working capital of Rs. 3511.
COMPARATIVE ANALYSIS OF WORKING CAPITAL COMPONENTS OF ACC

LTD
ACC CEMENT LTD
% %
PARTICULARS 2019 2020 change 2020 2021 change
Current Assets
1273.3
Inventories 1141 900.47 -21 900.47 1 41
Financial Assets
628.4
Trade Receivables 3 451.53 -28 451.53 489.18 8
4383. 5734.9 7247.2
Cash And Cash Equivalents 2 5734.9 31 2 4 26
Bank Balance Other Than Cash And Cash 154.9
Equivalents 2 156.17 1 156.17 156.94 0
Loans 31.43 6.68 -79 6.68 7.46 12
270.5
Other Financial Assets 1 319.39 18 319.39 260.05 -19
Current Tax Assets(Net) 71.26 71.26 -100
803.4
Other Current Assets 1 687.17 -14 687.17 809.94 18
7412. 8327.5 10244.
8 8327.6 12 9 1 23
Non-Current Assets Classified As Held Sell 10.47 2.91 -72 2.91 2.33 -20
7423. 8330.5 10246.
Total Current Assets 3 . 12 8330.5. 5 23
Current Liabilities
Financial Liabilities
Trade Payables
Total Outstanding Dues Of Smes 11.21 6.29 -44 6.29 25.33 303
Total Outstanding Dues Of Creditors Other Than 1459. 1410.0 1873.8
Smes 7 1410 -3 1 8 33
Other Financial Liabilities
Lease Liabilities 18.51 18.51 24.21 31
933.9 1025.8
Other Financial Liabilities 6 1025.8 10 4 1127.2 10
44
1913. 2259.5
Other Current Liabilities 8 1993 4 1993 7 13
Provisions 23.39 15.87 -32 15.87 15.7 -1
342.3
Current Tax Liabilities(Net) 6 339.63 -1 339.63 666.28 96
4684. 4790.7 5992.1
Total Current Liabilities 5 4790.7 2 4 7 25
INFERENCE: - This table shows the comparative analysis of current assets and current liabilities of
ACC ltd during the period 2019, 2020, & 2021. At the time of comparison between 2019 and 2020 the
liquidity position of the company is not satisfactory because every component of current assets decreased
except other financial assets and cash and bank balance. Bank balance shows a negligible change of 1%
only. Cash increased from Rs. 4383 to Rs. 5734 that is 31%. The current liabilities shows a change of 2%.
In 2020 and 2021 comparative analysis current assets increased to 23%. The cash position is increased to
26% which shows an improvement in liquidity position of the company where there is no change in bank
balance. Inventory increased to 41% from 900 to 1273 which is not a good sign for the company. If the
inventory increase in this way then there will be a problem of idle stock. But the current liabilities also
increased from Rs. 4790 to 5992 the percentage increased to 25%. In current liabilities the major changes
occur in trade payables that is 336%. Every item in current liabilities increased except provisions.
Provisions have decreased to 1% that is also we can consider as a negligible change.
RATIO ANALYSIS
Table showing ratios relating to working capital of ACC CEMENT LTD
RATIO
Workin
year
Inventor g Credito Avg.
Curre y Turn Capital Debtor r Avg. Payme
nt Quick Over Turnov Turnov Turnov Collection nt
Ratio Ratio Ratio er Ratio er Ratio er Ratio Period Period
2019 1.58 1.33 11.11 5.71 24.9 1.74 14.64 209
2020 1.73 1.54 13.51 3.89 30.56 1.67 11.94 218
2021 1.71 1.49 14.87 3.8 33 1.63 11.05 223
1.673 1.453 12.543333 216.66
mean
3 3 13.1633 4.46667 29.4867 1.68 33 7
0.106 0.148 1.9091883 6.3639
S.D.
1 5 1.69706 1.28693 4.00222 0.0495 09 6
min. 1.58 1.33 11.11 3.8 24.9 1.63 11.05 209
max. 1.73 1.54 14.87 5.71 33 1.74 14.64 223
45
INFERENCE:- Average inventory turnover ratio of ACC cement ltd is 13.163 during 3years of the study
is 4.47. It is highest in the year 2019 and lowest in the year 2020. The collection period is 12.54 on an
average, there is not much fluctuation over the study period. The average payment period is very high as
compared to average collection period. The average payment period during the study period is 216. It is
highest in the year 2021 that is 223. The current ratio of the company very satisfactory in the study period,
then also it increased in 2nd and 3rd year as compared to 1st year. It represents an improvement in liquidity
position of the company. As per the banker’s rule of thumb the company having the current ratio of 2:1 that
is current asset is double of current liability is considered as a good liquidity position. Here the current ratio
for 2019 is 1.58, then in 2020 and 2021 it is 1.73 and 1.71 respectively. The quick ratio on an average is
1.45 during the three years of the study. It is highest in the year 2020 and lowest in the year 2019.
CURRENT RATIO
total
year current asset total current liabilities CURRENT RATIO
2019 7423 4684 1.58
2020 8330 4791 1.73
2021 10246 5992 1.7
CURRENT RATIO
1.75
1.73
1.7
1.7
1.65
1.6
1.58
1.55
1.5
2019 2020 2021
INFERENCE:- The table showing current ratio of the company ACC Ltd. It is increasing per year. In
2019 the current ratio of the company is 1.58 where the current assets and current liability is 7423 and
10246 respectively. In 2020 the current asset increased to 8330 and the current liability is 4791 and result
in a current ratio of 1.73. in 2021 the current assets increased to 10246 but the ratio is slightly decreased
from the previous year in 0.03 that is a negligible change. However the current ratio position of the company
is satisfactory.
46
QUICK RATIO
year Quick asset quick liabilities quick ratio

2019 6241 4684 1.33
2020 7376 4791 1.53
2021 8928 5992 1.48
quick ratio
1.55
1.5 1.53
1.45 1.48
1.4
1.35
1.3 1.33
1.25
1.2
2019 2020 2021
INFERENCE:-After deducting inventory and prepaid expenses from the current assets and
the bank overdraft from the current liability the quick asset and the quick liability arises. By
dividing total quick assets to total quick liability the result shows a quick ratio which
represents a more rigorous test than current ratio. As per the rule of thumb the ratio should
be 1:1 to have a satisfactory result. Here in ACC ltd the quick asset ratio is very high. In
2019 it is 1.33, in 2020 it is 1.53 and in 2021 it is 1.48. Though it is high it doesn’t mean
there is a high liquidity position in the company because it also has slow paying debtors.
OPENING CLOSING AVG.. INVENTORY

year INVENTORY INVENTORY INVENTORY NET SALE T.O. RATIO
2019 1678 1140 1409 15657 11.11
2020 1140 900 1020 13784 13.51
2021 900 1273 1086.5 16151 14.86
47
16
14 14.86
12 13.51
10 11.11
8
6
4
2
0
2019 2020 2021
INVENTORY T.O. RATIO
INFERENCE:-The inventory/ stock turnover ratio of ACC ltd., is presented in the above table. The
table shows an inventory of 11.11 in 2019, 13.51 in 2020 and 14.86 in 2021. We can count inventory
conversion period by adopting the formula 365(days in a year) divided by the inventory turnover ratio. For
2019 it will be 32.85 times, for 2020 it will be 27 and for 2021 it will be 24.56. The inventory turnover ratio
should not be too high or too low. Here in this company the inventory conversion period is quite good.
WORKING CAPITAL T.O.

year NET SALE net working capital RATIO
2019 15657 2739 5.71
2020 13784 3539 3.89
2021 16151 4254 3.79

6
5.71
5
4
3.89 3.79
3
0
2019 2020 2021
48
INFERENCE:- The working capital ratio indicates the velocity of utilisation of net working capital.
This ratio indicates how many times the working capital is turned over in a year. The working capital ratio
of ACC ltd for 2019 is 5.71 by having net sale of 15657 and net working capital of Rs. 2739. Then the
ration decrease to 3.89 in 2020 with net sale of Rs. 13784 and net working capital of RS. 3539. Then in
2021 the net sale is increased to 16151 that is the highest net sale if the study period but there is also an
increment in net working capital to 4254 that again leads to a decreased working capital turnover ratio. The
value of the working capital turnover ratio in 2021 is 3.79.
D.T.O.
Year NET SALE DEBTOR RATIO
2019 15657 628 24.93
2020 13784 451 30.56
2021 16151 489 33.03

35
30 33.03
30.56
25
20 24.93
15
10
5
0
2019 2020 2021
D.T.O. RATIO
AVG. COLLECTION PERIOD
D.T.O.
year NET SALE DEBTOR RATIO AVG. COLLECTION PERIOD
2019 15657 628 24.93153 14.6401
2020 13784 451 30.56319 11.94247
2021 16151 489 33.02863 11.05102
49
INFERENCE:- The debtor turnover ratio, which shows that the number of times the debtors turned over
during the period of the study from 2019 to 2021. Here in 2019 the debtor turnover ratio is 24.93 then in
2020 it is 30.56 then in 2021 it is 33.03.
In average collection period it shows the company’s effectiveness to collecting its receivables or money
owed by customers the average collection period of the company is decreasing each year that means the
company is maintaining its debtor properly. The average collection period of the company for the period
of 2019 is 14.64 days where in 2020 it is 11.94 days then in 2021 it again decrease to 11 days.
CREDITOR TURNOVER RATIO
year PURCHASE CREDITOR CREDITOR T.O. RATIO

2019 2552 1470 1.74
2020 2368 1416 1.67
2021 3091 1900 1.63
Creditor Turnover Ratio

1.75
1.74
1.7
1.65 1.67
1.6 1.63
1.55
2019 2020 2021
AVERAGE PAYMENT PERIOD
CREDITOR
TURNOVER AVG. PAYMENT
year PURCHASE CREDITOR RATIO PERIOD
2019 2552 1470 1.74 209
2020 2368 1416 1.67 218
2021 3091 1900 1.63 223
INFERENCE:-The first table shows the creditor turnover ratio of the company. The creditor turnover
ratio is increasing per year. In the course of business operation, a firm has to make credit purchase and incur
50
short term liabilities. The creditor turnover ratio of the company is very low, that leads to a higher average
payment period. Here the ratio is decreasing per year and leads to an increment in payable days. The creditor
turnover ratio in 2019 is 1.74 and the average payable days in 209, in 2020 and 2021 the ratio is 1.67 and
1.63 respectively. The average payment days for 2020 and 2021 is 218 and 223 respectively. The payable
days is very high as compared to the receivable days that may be indicate of two possibilities. The first one
is either the company may follow a policy where it purchases more on credit and not allow more credit sell
to retain cash for some other investment purpose. Or the second one is the company may not have liquid
balance to pay its debt. In another view we can say that the company is very trust worthy so that the creditor
s are giving it such maximum days to pay.
AVERAGE GROWTH OF WORKING CAPITAL COMPONENTS OF

THREE COMPANIES DURING THREE YEARS OF STUDY PERIOD OF
2019-2021
AMBUJA cement
COMPONENTS ULTRATECH cement ltd ACC LTD
ltd
Inventories -1 25 6.66
Sundry debtors 1.5 -3.33 -6.66
Cash & bank 411 1.33 19.33
Other current assets 8 15 1.33
Loans & advances -27.5 1.66 -22.33
Total current assets 36.5 6 11.66
Total current liabilities 17.5 6.66 9
Net working
367 490 16.33
capital
INFERENCE: - The table shows average growth of working capital component of the three selected
companies for the study period that is foe 3 years from 2019 to 2021. The growth in net working capital is
more in case of Ambuja cement ltd and less in case of ACC cement ltd., but the net working capital of ACC
cement ltd is stable during the period. The average growth rate of total current liabilities is highest with
UltraTech cement ltd and followed by ACC Ltd and Ambuja cement ltd that is 9 and 6.66 respectively. The
total current liabilities grow more in UltraTech cement ltd that is more than 30% and less with Ambuja
cement with a growth less than 10%, ACC cement ltd stand between the two companies having a growth
of nearer to 11.66%. sundry debtors’ growth is negative with ACC Ltd that is a good sign for the company.
It represents that the company have a good position in credit management.
51
COMPARATIVE ANALYSIS OF AVERAGE RATIOS OF SELECTED
COMPANIES DURING THREE YEARS
UltraTech Ambuja cement

ACC ltd
Ratios Cement Ltd ltd
Inventory Turnover Ratio 35 14 13.163
Debtor Turnover Ratio 19 43 29.48
Working Capital Turnover Ratio 27 -29 4.47
Receivable Days 19 10 12.54
Payable Days 180 297 217
Current Ratio 1 1 1.67
Quick Ratio 1 1 1.45
Creditor Turnover Ratio 2 1 1.68
INFERENCE: -This table shows the average ratio of three years study period. Here the UltraTech
cement ltd is in top position in inventory turnover ratio with 35 followed by Ambuja Cement ltd. That is 14
and ACC ltd that is 13.163. debtor turnover ratio is highest in the company Ambuja cement ltd. that is 43
then the second position occurred by ACC ltd having 29.48 debtor turnover then in last Ultratech cement
ltd is on bottom having 19. In opposite UltraTech cement ltd is on the top when we consider the receivable
days that is 19 days. Ambuja cement ltd is on last position having 10 days and in middle ACC ltd acquired
the place by having 12.54 days. In case of payable days Ambuja cement have a highest payable period of
297 days followed by ACC ltd with 217 days then by UltraTech cement ltd with 180 days. The creditor
turnover ratio position is exactly opposite to the payable days. In the list of creditor turnover ratio UltraTech
cement ltd is on the first place by having 2, followed by ACC cement ltd that is 1.68 then Ambuja cement
ltd with 1. All companies have maintained the current ratio less than 2:1. As per the rule of thumb no
company is maintaining proper current ratio but among them ACC cement ltd is on the top that is 1.67 and
the other two companies. And at last, in case of quick ratio every company is having a satisfactory result.
All the companies have ratio more than 1:1. Here ACC ltd is on the top by having 1.68 quick ratio.
52
6.1 Findings & Conclusion
An attempt has been made in the present study to investigate the working capital management of Indian
cement companies, three companies named UltraTech cement ltd., Ambuja cement ltd., ACC cement ltd.,
are used as sample, the study is made for a period of three years 2019, 2020 and 2021. Comparative analysis
of individual companies, different working capital management ratio such as liquidity ratio and efficiency
ratio have been computed for the selected firm over the study period. Also a comparison between the three
company’s average growth and average ratio is made to know the performance of one company as
compared to other.
From the present study it is observed that the ACC cement ltd is maintaining proper liquidity position
throughout the period. The average current ratio of the firm is 1.67, &it is satisfactory. Followed by
UltraTech cement ltd and Ambuja cement ltd with 1.27 and 1.02 respectively. The average quick ratio of
each firm is satisfactory but among them ACC ltd is on top with 1.45. By computing efficiency ratio it is
observed that the inventory of UltraTech cement ltd is moving fast. It has a highest result in inventory
turnover ratio i.e., 35. It represents that this company is selling product rapidly in market so inventories are
disposing of quickly. UltraTech cement ltd is on the top with a highest average working capital turnover
ratio i.e., 27. In case of Ambuja cement ltd it is showing a negative balance of -29 and in ACC ltd it is 4.47.
Debtor turnover ratio is highest with Ambuja cement ltd. i.e., 43, followed by ACC ltd. With 29.48 and
UltraTech cement ltd. With 19. The average collection period of Ambuja cement ltd. Is lowest with 10 days
and highest with UltraTech cement ltd. With 19 days. The creditor turnover ratio is more in UltraTech
cement ltd. i.e., 2 and followed by ACC ltd and Ambuja cement ltd with 1.68 and 1 respectively. Inversely
the average payable days is more in Ambuja cement ltd., and less in UltraTech cement ltd with 297 days
and 180 days respectively. ACC ltd is in between them with 217 days.
53
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55
Annexure
BALANCE SHEET OF ULTRATECH CEMENT LTD
particulars 2021 2020 2019

ASSETS
non current assets
property plant and equipment 38270.94 39662.39 40404.82
capital work in progress 1522.07 860.01 1106.19
right of use assets 1109.44 1007.94
goodwill 2208.82 2208.82 2208.82
other intangible assets 3876.92 3896.14 4023.11
intangible asset under development 5.72 10.07 4.69
46993.91 47645.37 47747.63
Financial Assets
investment 6757.67 5838.93 5549.66
loans 144.35 141.94 142.84
other financial assets(net) 552.03 397.05 272.01
income tax assets(net) 311.74 278.23 127.18
other non-current assets 2664.03 2763.88 2753.68
Total non-current assets 57423.73 57065.4 56593
current assets
inventories 3722.05 3833.88 3787.47
financial Assets
investments 10812.01 4243.69 1514.85
trade payables 2285.99 1848.28 2353.19
cash and cash equivalents 118.58 140.06 423
bank balance other than cash and cash equivalents 1757.97 170.46 232
loans 897.18 1903.53 1933.47
other financial assets 17625.88 1068.93 976.83
other current assets 1634.99 1505.32 1400.49
Total current assets 22982.92 14714.15 12622.77
non-current assets classified as held sell 9.45 37.37 55.18
Total assets 80416.1 71816.92 69270.95
equity and liabilities
equity
equity share capital 288.65 288.63 274.64
other equity 43063.99 38007.69 27634.36
43352.64 38296.32 27909
liabilities
non-current liabilities
financial liabilities
borrowing 10684 14147.63 16038.5
other financial liabilities 1237 813.78
provisions 329.08 213.13 142.71
deferred tax liabilities(net) 5219.14 4076.88 5246.52
other non -current liabilities 4.93 5.88 6.27
total non-current liabilities 17475.7 19257.3 21434
current liabilities
56
borrowings 4230.15 3953.21 3586.82
trade payables
total outstanding dues of SMES 65.26 53.21 20.31
total outstanding dues of creditors other than SMEs 4314.92 2985.57 2951.02
other financial liabilities 5209.76 2685.79 3230.98
other current liabilities 4549.21 3449.92 3728.85
provisions 506.76 534.51 581.94
current tax liabilities(net) 711.7 601.09 439.67
total current liabilities 19587.76 14263.3 14539.59
total equities and liabilities 80416.1 71816.92 69270.95
BALANCE SHEET OF AMBUJA CEMENT LTD
AMBUJA CEMENT
ASSETS
non current assets
property plant and equipment 7128 5382.88 5633.62
right of use assets 343 373.98
capital work in progress 951 1873.74 1108.7
other intangible assets 174 174.64 179
Investments in subsidiaries,associates & joint ventures 11788 11787.71 11789
Financial Assets
investment 9.2 4.5
loans 1.52 0.94 0.85
non-current tax assets(net) 118.58 152.19 176.64
other non current assets 545.94 686.66 819.99
Total non-current assets 21398.77 21050.57 20142.63
current assets
inventories 1464 747 954
financial Assets
trade receivables 293 192 513
cash and cash equivalents 3985 2717 4513
bank balance other than cash and cash equivalents 178 207 187
loans 4.76 4.43 4.5
other current assets 620 460.35 423.19
6750 4406.06 6823.35
non-current assets classified as held sell 25 24.75 24.75
total current assets 6775 4430.81 6848.1
total assets 28173 25481.38 26990.73
equity 397 397 397.13
equity share caoital 21810 19919 21808
other equity 22207 20316 22205.18
57
liabilities
BORROWINGS 43.5 43.6 35.28
lease liabilities 261 296.64
provisions 65.12 55.62 50.34
deferred tax liabilities(net) 201.79 185.95 216
Other non-current liabilities 36.74 40.05 35.83
total non-current liabilities 608.43 621.99 338.13
current liabilities
trade payables
total outstanding dues of smes 7.57 2.46 1.09
total outstanding dues of creditors other than smes 1136.83 878.44 934.89
lease liabilities 42.9 27.88
other current liabilities 2040 1911.97 1737.81
provisions 8.92 3.85 8.53
current tax liabilities(net) 1242 981.16 906.22
total liabilities 5966 5165.52 4785.55
total equities and liabilities 28173 25481.38 26990.73
BALANCE SHEET OF ACC CEMENT LTD

ASSETS
non current assets
property plant and equipment 6518.42 6482.91 6957.28
capital work in progress 1240.75 545.3 435.34
other intangible assets 49.77 45.8 34.09
right of use assets 154.61 129.89
Investments in subsidiaries, associates & joint ventures 174.33 212.43 226.45
Financial Assets
investment 18.4 8.2 3.7
loans 6.08 7.59 135.92
non-current tax assets(net) 1002.11 942.04 857.01
other non curretnt assets 594.95 653.86 399.15
Total non-current assets 10672.56 9795.43 9658.8
current assets
inventories 1273.31 900.47 1140.95
financial Assets
trade receivables 489.18 451.53 628.43
cash and cash equivalents 7247.24 5734.92 4383.18
bank balance other than cash and cash equivalents 156.94 156.17 154.92
loans 7.46 6.68 31.43
58
current tax assets(net) 71.26
other current assets 809.94 687.17 803.41
10244.12 8327.59 7412.83
non-current assets classified as held sell 2.33 2.91 10.47
total current assets 10246.45 8330.5. 7423.3
total assets 20919.01 18125.93 17082.1
equity
equity share capital 187.99 187.99 187.99
other equity 14040.44 12473.45 11333.29
14228.43 12661.44 11521.28
liabilities
provisions 214.3 213.57 234.13
deferred tax liabilities(net) 382.74 376.2 642.21
total non-current liabilities 698.41 673.75 876.34
current liabilities
trade payables
total outstanding dues of smes 25.33 6.29 11.21
total outstanding dues of creditors other than smes 1873.88 1410.01 1459.7
other financial liabilities
other current liabilities 2259.57 1993 1913.8
provisions 15.7 15.87 23.39
current tax liabilities(net) 666.28 339.63 342.36
total liabilities 6690.58 5464.49 5560.82
total equities and liabilities 20919.01 18125.91 17082.1
statement of profit & loss of UltraTech cement ltd

revenue from operation 43188.34 40649 39998
other income 788.68 726 496.8
total income(I) 43977.02 41357 40495
expenses
cost of material consumed 5174.94 4960 5039
purchase of stock in trade 1936.7 2262 1582
changes in inventories of
finished goods, stock in trade & WIP. 426.44 -362.74 62.94
employess benefits expenses 2181.99 2336 2158
finance costs 1259 1704 1648
depreciation and amortisation expenses 2434 2454.9 2321
power and fuel 7552 7703 8828
59
freight and forwarding expenses 9939.5 9631 10315
other expenses 5035 5479 4957
35940.36 36170 36913
lease : captive consumption of cement 23.41 -14.3 -24.15
total expenses(II) 35916.95 36155.99 36889
Profit before exceptional items and tax
expenses(I)-(II) 8060 5219.76 3606
exceptional items
rates and taxes 164 0 -113.88
profit before tax expenses 7896 5219.7 3492
tax expenses
current tax 1415 915.38 717.55
short/ tax provision related to previous year 3.25 -3.69
deferred tax 1138.9 -1154.41 366
total tax expenses 2554 -235.78 1079.93
profit for the year(III) 5342 5455.54 2412
statement of profit & loss of Ambuja cement ltd

revenue from operation 13964.9 11371.86 11667
other income 285.64 372 426
total income 14250 11743.86 12094
expenses
cost of material consumed 1134 874.88 994
purchase of stock in trade 381 197.31 88
finished goods, stock in trade & WIP. -356 114 42
employess benefits expenses 677.65 668.78 672
finance costs 90.94 83.05 83
depreciation and amortisation expenses 551.24 521.17 543
power and fuel 3421.01 2251.9 2586
freight and forwarding expenses 3308.33 2854.88 3094
other expenses 2211.15 1784.54 2046
11419.83 9350.6 10152
self consumption of cement -20.18 -21.12 -6.15
total expenses 11399 9329.48 10146
Profit before exceptional items and tax
expenses(1-2) 2850.94 2414 1948
exceptional items 65.69 0 0
profit before tax expenses(3-4) 2785.25 2414 1948
tax expenses
deferred tax charges/ credit 690.79 652.04 573
deferred tax -(credit) 13.92 -27.76 -153
704.71 624.28 419
profit for the year(5-6) 2080.54 1790 1528
60
statement of profit & loss of ACC ltd
revenue from operation 16151 13784 15656
other income 204 203.9 311
total income(1+2) 16356.11 13988 15967.86
expenses
cost of material consumed 2120 1673 2258
purchase of stock in trade 921 696 361
finished goods, stock in trade & WIP. -174 142 100.8
Employees benefits expenses 834 839 863
finance costs 3360.8 2572 3131
depreciation and amortisation expenses 3844.7 3431 4050
power and fuel 54.63 57.04 86.22
freight and forwarding expenses 597 635 602.9
other expenses 2268.65 2077 2483.55
13827.31 12125 13938.7
captive consumption of cement -24.45 -1.02 -2.32
total expenses 13802.86 12124.73 13936
Profit before exceptional items and
tax expenses(3-4) 2553.25 1863 2031
exceptional items
impairment of investments and assets 38.1 176
restructuring cost 54.76
profit before tax expenses(5-6) 2460.39 1687.78 2031
tax expenses
current tax 635 547 689.81
deferred tax charges 4.71 -274 -17.25
640.12 272.84 672.56
profit for the year(7-8) 1820.27 1414.94 1358.91
61

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A COMPARATIVE STUDY ON WORKING CAPITAL

MANAGEMENT OF SELECTED CEMENT

P.G. Department of Commerce

Under The Supervision of

RAVENSHAW UNIVERSITY, CUTTACK

Date:- Student name:

My sincere thanks also to the Head of the Department ________________________________and all my

Date: Name of the student:

Chapter no. Particulars Page no.

CHAPTER-1 1.1 INTRODUCTION 7

CHAPTER -2 2.1 LITERATURE REVIEW 13-17

CHAPTER-3 3.1 OBJECTIVE

3.2 RESEARCH METHODOLOGY

CHAPTER-5 5.1 DATA ANALYSIS AND 25-52

CHAPTER-6 6.1 FINDINGS AND CONCLUSION 53

CHAPTER-7 7.1 BIBLIOGRAPHY 54-55

CLASSIFICATION OR KIND OF WORKING CAPITAL:

On the basis of concept,

GROSS WORKING CAPITAL

On the basis of time, working capital may be classified as:

PERMANENT OR FIXED WORKING CAPITAL

EXCESS OR ADEQUATE WORKING CAPITAL

Consequences of Excess Working Capital:

Further, following formula can be used to determine the conversion periods.

Caballero, Garcia-Teruel, Martinez-solano(2013) It examine the relationship between working capital

3.2 RESEARCH METHODOLOGY

Those Companies are

• Ultratech cement ltd

• Website of Ultratech cement ltd

This is a descriptive and analytical study.

• Ratios analysis relating to working capital

• No of days in a year is 365.

3.4 Limitation of the study

Date of Establishment 1983

CEO/Managing Director K K Maheshwari

Revenue 43,977.02 crore

Operating income 8060.07 crore

Net profit 5342.07 crore

Total asset 80,416.10 crore

Total equity 43,352 crore

Company Status Active

(B) Ambuja cement

Key people Suresh Kumar Neotia, Founder

(C) ACC LTD

Key people N. S. Sekhsaria (Chairman)

ACC CEMENT PRODUCTS

• Ordinary Portland Cement (OPC),

• Portland Pozollana Cement (PPC),

• Portland Slag Cement (PSC) and

• Composite Cement and

• Ready Mix Concrete (RMX).

• 33.05 MTPA Installed cement capacity

• 56,000 Channel partners.

ACC ltd Subsidiaries

The following are the subsidiaries of ACC ltd

• ACC Mineral Resources Limited

• Bulk Cement Corporation (India) Limited