1

INDEX
Sr. No. 1 2 Title Companys Background Profit and Loss Account for the year ended 2009, 2010, 2011. Balance Sheet as on 31st March 2009,2010, 2011. Trend analysis and Comments Acknowledgement Bibliography Page No.
3 4

3 4 5 6

6 7 9 9

By: Yash Gilitwala Rohan Hatiskar Sparsh Kothari Sambhav Palawat Aman Thadani Mansingh Thoravde Hamza Valiulla Kanhay Visharia
2

13 15 26 35 53 54 56 57

COMPANY BACKGROUND
Ultratech Cement was incorporated in 2000 as Larsen & Toubro. Later it was demerged and acquired by Grasim and was renamed as Ultra Tech Cement in 2004. Today Ultatech cement a part of Aditya Birla group, is the countrys largest exporter of cement clinker. It manufactures and markets Ordinary Portland Cement, Portland Blast Furnace Slag Cement and Portland Pozzolana Cement and has annual capacity of 18.2 million tonnes. All the plants have received ISO 9001 certification. It has subsidiaries namely Dakshin Cements and UltraTech Ceylinco.

Products
It manufactures ordinary portland cement commonly used in dry-lean mixes, general-purpose ready-mixes, and even high strength pre-cast and pre-stressed concrete. It produces Portland blast furnace that has features like lighter colour, better concrete workability, easier finishability, higher compressive and flexural strength, improved resistance to aggressive chemicals and more consistent plastic and hardened consistency.It also manufactures portland pozzolana cement. Ultratech cement exports over 2.5 million tonnes per annum which accounts for 30% of countrys total exports. It exports to countries like Africa, Europe and the Middle East.

Milestone
Ultratech Cement received Greentech Environment Excellence Award by the Greentech Foundation, New Delhi in the year 2000-2001. The Aditya Birla Group is the 11th largest cement producer in the world and the seventh largest in Asia. In 2004-05 it received State and Zonal level I prize for overall performance in Mines safety.

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

PROFIT & LOSS ACCOUNT OF ULTRATECH CEMENT

PARTICULARS ---------- in Rs. Cr. ---------Mar '09 Mar '10 Mar '11 PERCENTAGE Mar '09 Mar '10 Mar '11

Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp. Capitalized Total Expenses Operating Profit Interest PBDT Depreciation Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax 1,280.31 1,712.98 216.76 92.58 1,405.51 28.88 -8.38 4,728.64 1,818.55 134.09 1,684.46 323 1,361.46 0 1,361.46 384.44 977.02 3,448.33 0 62.24 10.58
4

7,160.42 774.92 6,385.50 75.35 86.34 6,547.19

7,729.13 686.31 7,042.82 122.71 4.59 7,170.12 1,593.03 1,430.91 250.28 97.42 1,653.57 48.58 -4.02 5,069.77 2,100.35 124.11 1,976.24 388.08 1,588.16 0 1,588.16 494.92 1,093.24 3,476.74 0 74.69 12.41

14,858.60 1,652.96 13,205.64 286.67 66.11 13,558.42 2,752.86 3,122.59 666.5 600.04 0 3,587.40 0 10,729.39 2,829.03 277.11 2,551.92 765.73 1,786.19 125.52 1,911.71 507.48 1,404.23 7,976.53 0 164.42 26.67

100 107.94241 100 88.565271 100 110.29395 100 162.85335 100 5.3161918 100 109.51446 100 124.42533 100 83.533375 100 115.46411 100 105.22791 100 117.64911 100 100 168.2133 47.97136

207.51017 213.30718 206.80667 380.45123 76.569377 207.08762 215.01511 182.28993 307.48293 648.13135 0 12421.745 0 226.90224 155.56515 206.65971 151.49781 237.06811 131.19666 0 140.41617 132.00499 143.72582 231.31574 0 264.17095 252.0794

100 107.21412 100 115.49586 100 92.557238 100 117.32187 100 120.14861 100 116.65124 100 0 100 116.65124 100 128.7379 100 111.89536 100 100.82388 100 0 100 120.00321 100 117.29679

Per share data (annualized) Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs)

1,244.86 78.48 50 289.22

1,244.87 87.82 60 370.05

2,740.42 51.24 60 389.04

100

100.0008

220.13881 65.29052 120 134.51352

100 111.90112 100 120 100 127.94758

BALANCE SHEET OF ULTRATECH CEMENT

PARTICULARS ------- in Rs. Cr.-------Mar '09 Mar '10 Mar '11 PERCENTAGE Mar '09 Mar '10 Mar '11

SOURCES OF FUNDS Owners Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Borrowed Funds (Long Term) Secured Loans Unsecured Loans Total Debt TOTAL CAPITAL EMPLOYED APPLICATION OF FUNDS Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs)

124.49 124.49 1.68 0 3,475.93 0 3,602.10 1,175.80 965.83 2,141.63 5,743.73

124.49 274.04 124.49 274.04 1.99 4.78 0 0 4,482.17 10,387.22 0 0 4,608.65 10,666.04 854.19 750.33 1,604.52 2,789.76 1,354.84 4,144.60

100 100 100 100 100 100 100 100 100 100 100

100 100 118.45 0 128.95 0 127.73 72.65 77.69 74.92 108.17

220.13 220.13 284.52 0 298.83 0 296.11 237.26 140.28 193.52 257.86

6,213.17 14,810.64

7,401.02 2,765.33 4,635.69 677.28 1,034.80 691.97 186.18 104.49 982.64 395.71 0 1,378.35 0 1,860.59 121.8 1,982.39 -604.04 0 5,743.73 355.07 289.22

8,078.14 17,942.27 3,136.46 6,542.02 4,941.68 11,400.25 259.37 1,105.32 1,669.55 3,730.32 821.7 1,956.52 215.83 602.29 83.73 144.79 1,121.26 2,703.60 374.92 1,055.10 0 0 1,496.18 3,758.70 0 0 1,992.60 4,610.46 161.01 573.49 2,153.61 5,183.95 -657.43 -1,425.25 0 0 6,213.17 14,810.64 420.26 4,220.47 370.05 389.04
6

100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100

109.14 113.42 106.6 38.29 164.23 118.74 115.92 80.13 114.1 94.74 0 108.54 0 107.09 132.19 108.63 108.83 0 108.17 118.35 127.94

236.43 236.57 245.92 163.19 360.48 282.74 324.49 138.56 275.13 266.63 0 272.69 0 247.79 470.84 261.5 235.95 0 257.85 1188.63 134.51

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

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

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

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

Bibliography
1) http://www.ultratechcement.com/

2) http://economictimes.indiatimes.com/prices.cms?companyid=3027&fromdate=&todate=&fre quency=&numberofdmw=100&exchangeid=50&pagesize=25&pagenumber=1&arc=0 3) http://pdf.marketpublishers.com/93/ultratech_cement_limited_swot_analysis_bac.pdf 4) http://www.moneycontrol.com/financials/ultratechcement/ratios/UTC01 5) http://www.alacra.com/acm/2054_sample.pdf 6) http://myiris.com/shares/company/financial.php?icode=ULTCEMCO 7) http://money.livemint.com/IID64/F132538/Financial/Ratios/Company.aspx