CHAPTER -1 : INTRODUCTION

A) COMPANY PROFILE :
Ultra Tech Cement Limited

UltraTech Cement Limited is the largest manufacturer of cement in

India and ranks among the world‟s leading cement makers.
UltraTech‟s vision is to be „The Leader‟ in Building Solutions. The
company has a consolidated capacity* of 102.75 million tonnes per
annum (MTPA) of grey cement. UltraTech has a strong presence in
international markets such as Bangladesh, UAE, Sri Lanka and
Bahrain. UltraTech is a founding member of the Global Cement &
Concrete Association.

It operates 20 integrated units, 26 grinding units, seven bulk terminals

and one clinkerisation plant for grey cement, one integrated white
cement unit, two wallcare putty plants and over 100 RMC plants.
UltraTech has a dealer and retailer network of over 80,000 partners

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across the country, with a market reach of more than 80% Indian
cities and towns.

*Including four MTPA capacity which is under commissioning

Businesses
UltraTech is India‟s largest manufacturer of grey cement, white
cement and ready mix concrete (RMC).

In the white cement segment, UltraTech goes to market under the

brand name of Birla White. It has a white cement plant with a capacity
of 0.56 MTPA and two wallcare putty plants with a combined
capacity of 0.8 MTPA.

With 100+ Ready Mix Concrete (RMC) plants in 35 cities, UltraTech

is the largest manufacturer of concrete in India. It also has a slew of
speciality concretes that meet specific needs of discerning customers.

UltraTech Building Products business is an innovation hub that offers

an array of scientifically engineered products to cater to new-age
constructions. Aerated autoclaved concrete (AAC) blocks are
economical, light-weight blocks ideal for high-rise buildings, while
dry mix products include waterproofing, grouting and plastering
solutions designed for faster completion of projects.

The retail format of UltraTech Building Solutions offers a wide range

of construction products to the end customers under one roof.
UltraTech has over 1600 Building Solutions stores across India which

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are one-stop shops for all primary construction needs of our individual
home builders.

Products
UltraTech provides a range of products that cater to the needs of
various aspects of construction, ranging from foundation to finish,
under five business verticals:

 Grey Cement
 White Cement
 Concrete
 Building Products
 UltraTech Building Solutions

Sustainability
As the largest cement producer in India, UltraTech Cement
continually strives to play a key role in finding effective and
responsible ways to preserve the environment. As a company,
UltraTech is committed to its focus areas of climate change, health
and safety, energy conservation, water conservation, biodiversity and
natural resource substitution.

UltraTech Cement is fully aligned to the United Nations Sustainable

Development Goals (SDGs). It has been certified as two times „water
positive‟ by global auditing agency DNV. UltraTech Cement has a
power generation capacity of 58 MW through waste heat recovery
systems which is expected to reach 121 MW by 2020. More than 85%

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of its power consumption is met through captive thermal power plants
and waste heat recovery systems. Water conserved through rainwater
harvesting and recycling helps meet half of UltraTech‟s water
requirement in manufacturing.

Corporate Social Responsibility

UltraTech believes in the Group‟s CSR vision “To actively contribute

to the social and economic development of the communities in which
we operate. In doing so build a better, sustainable way of life for the
weaker sections of society, to contribute effectively towards inclusive
growth and raise the country‟s human development index”. It is
carrying this legacy forward by taking concrete steps to co-create
value for business and the society. The focus areas being healthcare,
education, sustainable livelihood, infrastructure and social reform.

UltraTech Cement has touched lives of more than 1.5 million people
in the local communities around its factories across India. It is
working in 480 villages spanning 15 states in India to provide
healthcare, education, safe drinking water, sanitation, sustainable
livelihood, and income generation opportunities for women. The
company has identified 58 villages to be transformed into model
villages.

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Brands

UltraTech Cement consolidates its position

UltraTech Cement Limited, today announced its unaudited financial

results for the quarter ended 31 December 2018.

Highlights
The major highlight of the quarter was completing the acquisition of
Binani Cement Limited (BCL) on 20 November 2018. Upon infusion
of funds by the company; taking over management control and re-
constitution of the Board of Directors, BCL has become a wholly-
owned subsidiary of the company with effect from 20 November
2018. BCL has been re-named as UltraTech Nathdwara Cement
Limited (UNCL) from 13 December 2018.

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The acquisition provides the company access to large reserves of high
quality limestone. It consolidates the company‟s leadership in the fast
growing Northern and Western markets in the country. The company
is confident of turning around the operations at the acquired plants,
which will benefit all stakeholders and also result in synergies from
optimisation of costs and improved realisations.

Acquisition of 21.2 MTPA capacity in 2017

The company has successfully integrated the 21.2 MTPA cement

capacity acquired in 2017. With substantial improvements carried out,
these plants are now operating in line with the existing plants of the
company and have achieved a stable capacity utilisation of
approximately 75 per cent. One of the plants in the Central region
underwent a major overhauling during this quarter and has achieved
cost improvements, from which the company will derive benefits from
Q4. The acquisition is generating incremental earnings as planned,
which are growing month on month.

Financials
Net sales rose 19 per cent to Rs.9,258 crore from Rs.7,779 crore over
the previous year. Profit before Interest, Depreciation and Tax was
Rs.1,548 crore vis-à-vis Rs.1,494 crore in the corresponding period of
the previous year.

Domestic sales volume jumped 15 per cent over Q3FY18. Higher fuel
and energy costs, coupled with rupee depreciation resulted in costs

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increasing by 11 per cent over Q3FY18. Additionally, interest costs
are higher due to the loans raised for the acquisition of UNCL.

Corporate developments

The Scheme of Arrangement amongst Century Textiles and Industries

Limited (“Century”), the company and their respective shareholders
and creditors (“the Scheme”), which was earlier approved by the
Board of Directors, has since received the approval of the stock
exchanges, the Competition Commission of India and the
shareholders of the company. The Scheme is now subject to the
approval of the National Company Law Tribunal and other regulatory
authorities as may be required.

Outlook
Demand is witnessing an upward movement with higher spends on
infrastructure and government sponsored housing programme. With
the additional capacities acquired by the company through the organic
and inorganic route and its rapid ramp-up, UltraTech is very well
placed to participate in the growth of the economy.

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 B) INTRODUCTION :
RATIO ANALYSIS
Ratio analysis is a powerful tool of financial analysis. A ratio is
defined as “the indicated quotient of two mathematical expressions”
and “the relationship between two or more things”. In financial
analysis, a ratio is used as a benchmark for evaluation the financial
position and performance of a firm. The absolute accounting figures
reported in the financial statements do not provide a meaningful
understanding of the performance and financial position of a firm. An
accounting figure conveys meaning when it is related to some other
relevant information. For example, an Rs.5 core net profit may look
impressive, but the firm‟s performance can be said to be good or bad
only when the net profit figure is related to the firm‟s Investment. The
relationship between two accounting figures expressed
mathematically, is known as a financial ratio (or simply as a ratio).
Ratios help to summarize large quantities of financial data and to
make qualitative judgment about the firm‟s financial performance. For
example, consider current ratio. It is calculated by dividing current
assets by current liabilities; the ratio indicates a relationship-a
quantified relationship between current assets and current liabilities.
This relationship is an index or yardstick, which permits a quantitative
judgment to be formed about the firm‟s liquidity and vice versa. The
point to note is that a ratio reflecting a quantitative relationship helps
to form a qualitative judgment. Such is the nature of all financial
ratios.

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Standards of comparison: The ration analysis involves comparison for
a useful interpretation of the financial statements. A single ratio in
itself does not indicate favorable or unfavorable condition. It should
be compared with some standard. Standards of comparison may
consist of:
Pastratios, i.e. ratios calculated form the past financial statements of
the same firm;
Competitors‟ ratios, i.e., of some selected firms, especially the most
progressive and successful competitor, at the same pint in time;
Industry ratios, i.e. ratios of the industry to which the firm belongs;
and
Protected ratios, i.e., developed using the protected or proforma,
financial statements of the same firm. In this project calculating the
past financial statements of the same firm does ratio analysis.

Theoretical background:

Use and significance of ratio analysis:-

The ratio is one of the most powerful tools of financial analysis. It is
used as a device to analyze and interpret the financial health of
enterprise. Ratio analysis stands for the process of determining and
presenting the relationship of items and groups of items in the
financial statements. It is an important technique of the financial
analysis. It is the way by which financial stability and health of the
concern can be judged. Thus ratios have wide applications and are of

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immense use today. The following are the main points of importance
of ratio analys is:
a) Managerial uses of ratio analysis:-
1. Helps in decision making:-Financial statements are prepared
primarily for decision-making. Ratio analysis helps in making
decision from the information provided in these financial Statements.
2. Helps in financial forecasting and planning:-Ratio analysis is of
much help in financial forecasting and planning. Planning is looking
ahead and the ratios calculated for a number of years a work as a
guide for the future. Thus, ratio analysis helps in forecasting and
planning.
3. Helps in communicating:-The financial strength and weakness of a
firm are communicated in a more easy and understandable manner by
the use of ratios. Thus, ratios help in communication and enhance the
value of the financial statements.
4. Helps in co-ordination:-Ratios even help in co-ordination, which is
of at most importance in effective business management. Better
communication of efficiency and weakness of an enterprise result in
better co-ordination in the enterprise
5. Helps in control:-Ratio analysis even helps in making effective
control of business. The weaknesses are otherwise, if any, come to the
knowledge of the managerial, which helps, in effective control of the
business.

b) Utility to shareholders/investors:-
An investor in the company will like to assess the financial position of
the concern where he is going to invest. His first interest will be the

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security of his investment and then a return in form of dividend or
interest. Ratio analysis will be useful to the investor in making up his
mind whether present financial position of the concern warrants
further investment or not.

C) Utility to creditors: -
The creditors or suppliers extent short-term credit to the concern.
They are invested to know whether financial position of the concern
warrants their payments at a specified time or not.

d) Utility to employees:-
The employees are also interested in the financial position of the
concern especially profitability. Their wage increases and amount of
fringe benefits are related to the volume of profits earned by the
concern.

e) Utility to government:-
Government is interested to know overall strength of the industry.
Various financial statement published by industrial units are used to
calculate ratios for determining short term, long-term and overall
financial position of the concerns.

f) Tax audit requirements:-

Sec44AB was inserted in the income tax act by financial act;
1984.Caluse 32 of the income tax act requires that the following
accounting ratios should be given:
1.Gross profit/turnover.

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2.Net profit/turnover.
3.Stock in trade/turnover.
4.Material consumed/finished goods produced.
Further, it is advisable to compare the accounting ratios for the year
under consideration with the accounting ratios for earlier two years so
that the auditor can make necessary enquiries, if there is any major
variation in the accounting ratios.

Limitations:
Ratio analysis is very important in revealing the financial position and
soundness of the business. But, inspite of its advantages, it has some
limitations which restrict its use. These limitations should be kept in
mind while making use of ratio analysis for interpreting the financial
the financial statements. The following are the main limitations of
ratio analysis:
1. False results:-
Ratios are based upon the financial statement. In case financial
statement are in correct or the data of on which ratios are based is in
correct, ratios calculated will all so false and defective. The
accounting system it self suffers from many inherent weaknesses the
ratios based upon it cannot be said to be always reliable.
2. Limited comparability:-
The ratio of the one firm cannot always be compare with the
performance of other firm, if uniform accounting policies are not
adopted by them. The difference in the methods of calculation of
stock or the methods used to record the deprecation on assets will not
provide identical data, so they cannot be compared.

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3. Absence of standard universally accepted terminology:-
Different meanings are given to a particular term, egg. Some firms
take profit before interest and tax; others may take profit after interest
and tax. A companys overdraft is taken as current liability but some
firms may take it as non-current liability. The ratios can be
comparable only when all the firms adapt uniform terminology.
4.The comparability of ratios suffers,
if the prices of the commodities in two different years are not the
same. Change in price effect the cost of production, sale and also the
value of assets. It means that the ratio will be meaningful for
comparison, if the prices do not change.
5. Ignoring qualitative factors:-
Ratio analysis is the quantitative measurement of the performance of
the business. It ignores qualitative aspect of the firm, how so ever
important it may be. It shoes that ratio is only a one sided approach to
measure the efficiency of the business.
6. Personal bias:-
Ratios are only means of financial analysis and an end in it self. The
ratio has to be interpreted and different people may interpret the same
ratio in different ways.
7. Window dressing:-
Financial statements can easily be window dressed to present a better
picture of its financial and profitability position to outsiders. Hence,
one has to be very carefully in making a decision from ratios
calculated from such financial statements.

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Classification of ratios:
Several ratios, calculated from the accounting data can be grouped
into various classes according to financial activity or function to be
evaluated. Management is interested in evaluating every aspect of the
firm‟s performance. They have to protect the interests of all parties
and see that the firm grows profitably. In view of thee requirement of
the various users of ratios, ratios are classified into following four
important categories:
Liquidity ratios-short-term financial strength
Leverage ratios-long-term financial strength
Profitability ratios-long term earning power
Activity ratios-term of investment utilization
Liquidity ratios measure the firm‟s ability to meet current obligations;
Leverage ratios show the proportions of debt and equity in financing
the firm‟s assets;
Activity ratios reflect the firm‟s efficiency in utilizing its assets; and
Profitability ratios measure overall performance and effectiveness of
the firm.

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 CHAPTER -2 : Rationale &
Significance

The problems, which are common to most of the private/public

sectors under taking, are materials scarcity. Capacity utilization and
mainly working capital requirements and Ultra tech Cement. are no
exception. Thus the importance of the study reveals as to how
efficiently the working capital has been used so far in the
organization.

This study attempts primarily to measure the financial performance of

Ultra Tech Cement which one of the largest and prominent Cement
Company in India for the period 2015-2018 and to identify whether
any difference exists between a company‟s years of operation and its
performance classifying two period (2015-16 & 2017-118). To
complete my task I have to use various materials and take help form
online source. Analyse the ratio here used financial ratio analysis
(FRA) method which help to draw a overview about financial
performance of the Ultra Tech Cement in terms of profitability,
liquidity and credit performance. These analyses helps to see the
current performance condition of this company compare past
performance. Because now a day‟s cement sector of India is suffering
the disease of default culture which is the consequence or result of bad
performance of most companies. The performances of company‟s are
dependent more on the management‟s ability in formulating strategic

15
plans and the efficient implementation of its strategies. The study
findings can be helpful for management of Ultra Tech Cement always
for cement company in India to improve their financial performance
and formulate policies that will improve their performance. The study
also identified specific areas for Ultra Tech to work on which can
ensure sustainable growth for these company.

The scope of the study is limited to collecting financial data published

in the annual reports of the company every year. The analysis is done
to suggest the possible solutions. The study is carried out for 3
years(2015-18).

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 CHAPTER -3 : Objectives

 To examine the financial performance of the Ultra Tech

Cement Ltd for the period of 2015 to2018.

 To analyses interpret and to suggest the operational efficiency

of the Ultra Tech Cement Ltd by comparing the balance sheet&
profit & loss A\c

 To measure profitability, liquidity and credit management of

Ultra Tech Cement Ltd.

 To show the financial stability analysis ie. profitability and

liquidity.

 To analyze the balance sheet and income statement.

 To know overall Ultra Tech Cement Ltd financial performance

condition.

 To critically analyses the financial performance of the Ultra

Tech Cement Ltd with help of the ratios.

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CHAPTER -4 : Research Methodology

Research is process of purposive investigation. Research is a

systematic controlled, empirical and critical investigation of
hypothetical prepositions about the presumed relationship amongst
natural and actual phenomenon.

Research is a process of systematic and in depth study of any

topic, subject backed by collection, presentation and interpretation of
relevant data. Methodology is important tool in any research work. It
acts as a guideline and leads to the completion of research project.

The research methodology mainly involves the work of

gathering and collecting information for the analysis. The data
collected during the research study can be categorized under two
heads which are as follows :

 Primary Data
 Secondary Data

(a) PRIMARY DATA :-

To fine – tune experience gained by the researcher would

like to take the expertise opinion to shape the Project Report.

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(b) SECONDARY DATA :-

Secondary data collected from annual reports and also existing

manuals and like company records balance sheet and necessary
records.

 Books
 Internet
 Business Magzines
 Other Articles

A long with the above source the interaction with official of the
Company‟s is Manager of Account section also reveled some useful
information & guidance required for project report.

The Calculation were done for the three consecutive year viz. 2015–
2018 financial analysis it self technique to assess the soundness of the
Company.

Method like comparison, ratio analysis fund flow analysis also help to
study the financial analysis and interpretation of company.

Following Ratios are used for this Study.

1. Current Ratio
2. Quick Ratio
3. Proprietary Ratio
4. Debtors‟ Turnover Ratio
5. Current Liabilities to Net worth Ratio
6. Net Profit Ratio

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 CHAPTER -5 : Hypothesis
During this research below mentioning Null hypothesis has been
generated and ready test from research question which mentioned
earlier in above.

H01. There is no significant difference between 2015-16 and 2017-18

Return on Asset and Financial performance.

H02. There is no significant difference between 2015-16 and 2017-18

Return on Equity and Financial performance.

H03. There is no significant difference between 2015-16 and 2017-18

Cost to income and financial performance.

H04. There is no significant difference between 2015-16 and 2017-18

Net Loans to total asset and financial performance.

Other :

1. The financial performance of the company is satisfactory.

2. The liquidity position is good.
3. The operational efficiency is good.
4. The credit worthiness‟ of the company is strong.

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 CHAPTER -6 : Literature Review
The review of literature guides the researchers for getting better
understanding of methodology used, limitations of various available
estimation procedures and data base and lucid interpretation and
reconciliation of the conflicting results. Besides this, the review of
empirical studies explores the avenues for future and present research
efforts related with the subject matter. In case of conflicting and
unexpected results, the researcher can take the advantage of
knowledge of other researchers simply through the medium of their
published works.
A large number of research studies have been carried out on
different aspects of the working of public and private sector by the
researchers, economists and academicians in India. Different authors
have analyzed financial performance in different perspective.
A review of these analyses is important in order to develop an
approach that can be employed in the context of the study of selected
Manufacturing Enterprises viz. Paper, Cement, Sugar, Steel, Minerals
and Metals, Coal and Lignite, Power, Petroleum and Chemicals and
Pharmaceuticals. Therefore, the present chapter reviews the various
approaches to the study on financial analysis and performance.

A number of National and International research studies have been

carried out on different aspects of financial performance by the
researchers, economists and academicians in India. Different authors
have analyzed performance in different aspects. Very few research
work has been done on analysis of financial performance of Indian

21
cement industry. Therefore, the present chapter reviews the empirical
studies related with different aspects of financial performance.
Literature review was divided in two category National review and
International review.

NATIONAL REVIEW

Kaura, M. N and Bala Subramanian (1979)analyzed ten cement

units during the period of study 1972 to1977 shows that the financial
performance of the selected cement companies evidenced by
Profitability, Liquidity and capital structure ratios has declined. The
non availability of funds has affected the modernization of plants and
periodic rehabilitation of the kilns. Besides, the bottlenecks in supply
of raw materials and power and non remunerative prices have reduced
the capacity utilization, profits and cash flows. The profitability and
liquidity position in many cement companies have been affected
adversely because of the problems in supply of raw materials,
transport and power.

Nagarajrao B.S and Chandar K (1980)analyzed the financial

efficiency of cement companies for the selected period of the study
1970 -71 to 1977-78. It can be analyzed profitability of selected
cement companies has been found downward trend from 1970-71 to
1974-75 because the reason of inflation, rising of manufacturing cost,
continuous fall in capacity utilization due to many reasons.

22
Kumar B. Das (1987)has made an analysis of the financial
performance of the cement industry. it can be analyzed that the net
fixed assets as a percentage of total assets decreased for the period
1970-71 to 1977-78 that was 553.5% to 44.04 % respectively. Current
liabilities have increased than the current assets. Liquidity
performance of the cement industry is not healthy during period of the
study. The Debt Asset ratio has downward During the period of the
study and Debt Equity ratio has slightly increased while net worth
ratio has decreased over the years.

Nair N.K. (1991)has focused the productivity aspect of Indian

Cement Industry. This study emphasised that cement, being a
construction material, occupied a strategic place in the Indian
economy. This study has revealed that, in 1990-91, the industry had
an installed capacity of 60 million tonnes with a production of 48
million tonnes. In this study, the cement industry was forecasted to
have a capacity growth of about 100 million tonnes by the year 2000.
This study has also analyzed the productivity and financial
performance ratios of thecement industry with a view to identifying
the major problem areas and the prospects for solving them.

Dr. Dinesh A. Patel (1992)have analyzed Financial Analysis -A

Study of Cement Industry of India for the period of 1979-80to 1988-
89. He can analyzed the profitability of the cement industry, to
examine the short term financial strength of the cement industry
through the analysis of working capital management and to analyzed

23
the long term financial strength through the analysis of capital
structure.

Subir Cokavn and Rejendra Vaidha (1993)have analyzed to

evaluate the performance of cement industry after decontrol. They
found that the performance of the cement industry after decontrol was
characterized by outcomes that were generally competitive and
welfare enhancing. This study has revealed that the structure of the
industry changed significantly with large magnitude of relative
technologically and superior capacity being created by many new
entrants into the industry. It was also noticed in this study that there
were significant real price increase and an associated increase in
profitability. The performance of firms across the strategic group was
different with firms operating relatively new and large plants appeared
to have an advantage. Further, the study has dealt with the nature and
effect of inter-firm heterogeneities in the cement industry.

Chandrasekaran N (1993)has made an attempt to examine

determinants of profitability in cement industry. He identified that
profitability was determined by structural, as well as, behavioural
variables. He also identified that the other variables which influenced
profitability were growth of the firm, capital turnover ratio,
management of working capital, inventory turnover ratio etc. Some of
the main changes in the cement industry environment during 1980's
identified in this study were: from complete control to decontrol,
number of new entrants and substantial additions of capacity,
changing technology from inefficient wet process to efficient dry

24
process and from conditions of scarcity of cement to near gloat in the
market.

Chandrasckaran N (1994)has studied about the market structure of

the Indian Cement industry like demand and supply. It was analyzed
in that study that the demand and supply gap has been considerably
reduced and supply of cement during the period of study has increased
due to creation of additional capacity and capacity utilization.

Srinivasa Rao.G and Indrasena Reddy.P (1995),in their study,

analyzed the financial strength of paper industry had been improving
from year to year. The company's performance in relation to
generating internal funds in the form of reserves and surplus was
excellent and also the company was doing well in mobilizing
outsiders' funds. The liquidity position of the company was sound as
revealed by current ratio and quick ratio which were above the
standard. The solvency ratio showed that the company had been
following the policy of low capital gearing from the 1990-91 as these
ratios had been decreasing from this year. The performance of the
company in relation to its profitability was not up to the expected
level. The company's ability to utilize assets for generation of sales
had not been improved much during the period of study period as
revealed by its turnover ratios.

Govind Rao and Rao (1999)studied the impact of working capital on

profitability in Indian cement industry. It can be analyzed both

25
positive as well as negative correlations between working capital
related ratios and profitability.

Rajeswari. N (2000), in her study on liquidity management of Tamil

Nadu Cement Corporation Ltd., Alangulam, identified that the
liquidity position of the Tamil Nadu Cements Corporation Ltd.
(TANCEM) was not satisfactory in terms of Quick ratio and Current
ratio. She concluded that necessary steps ought to be taken to improve
the liquidity position of the company.

Nand Kishore Sharma (2002),in his Study on financial appraisal of

cement industry in India, has found that the liquidity position was
decreasing, current ratio and quick ratio showed a decreasing trend
and also these ratios varied from time to time. On comparing the
current ratio and quick ratio of cement industry, six companies were
found higher than the industry average and four companies lower than
industry average. The solvency position in term of debt-equity ratio
has showed a decreasing trend in the first 4 years of study, after that, it
registered an increasing trend. The ratio of fixed assets to total debt
always showed more than 100 percent which indicated that the claims
of outsiders were covered by the fixed assets of the cement
companies.

Ghosh S.K., and Maji S.G. (2004),in their paper, to examine the
efficiency of Working capital management of the Indian cement
companies from the year 1992-1993 to 2001-2002. They conclude

26
from the study indicated that the Indian cement industry, as a whole,
did not perform good perform during the selected period of the study.

Bardia (2006),in his study on Liquidity Management of Steel

Authority of India Limited, has analyzed the overall performance of
liquidity maintained by steel sector and the amount tied-up in various
components of working capital. This study has found that there was a
positive relationship between liquidity and profitability.

Amalendu Bhunia (2007), studied on liquidity management,

analyzed the short term financial strength through the analysis of the
working capital management of selected iron and steel companies in
India. The study revealed that actual values of working capital have
been found to be lower than the estimated values of working capital
for the companies, such as Steel Authority of India Limited (SAIL)
and Indian Iron and Steel Corporation (IISCO). There was a poor
liquidity performance existed in case of both SAIL and IISCO,
inefficient inventory management in case of SAIL and inefficient
receivable management in case of both the enterprises. It suggested
that increase in additional investment in raw materials, reduction in
the burden of current liabilities were necessary in order to improve the
inventory management and liquidity position of these steel companies.

Sudipta Ghosho (2008)has analyzed the liquidity performance of

Tata Iron and Steel Company (TISCO). During the selected period of
the study, it was found that the liquidity position of the company, on
the basis of current ratio as well as quick ratio, was not satisfactory. It

27
indicated that the share of current assets in total assets of the
company, on an average, was 29.1 percent during the period of study.
It was suggested that to maintain overall control of liquidity position,
the company should give special attention to the management of
current assets. He found that the degree of influence of liquidity on its
profitability was low and insignificant.

Rajamohan .S and Vijayaragavan T. (2008)have studied on

production performance of Madras Cement Limited. it can be
analyzed the comparative production performance of Madras cement
and all other cement companies in India. Statistical method Mann-
Whitney U-test was applied. The results of analysis indicated that the
production performance of selected unit was equal to production
performance of all other cement units in India.

Dharmendra S(2011) analyzed that Liquidity is in closely relation

with the profitability of the Indian Cement Industry as compared to
the solvency ratios like Total Assets Ratio, Inventory Turnover Ratio,
Debt-Equity Ratio and Operating Expenses Ratio.

Harshad R. Tandel (2013)Analyzed that the Financial Analysis of

selected Plastic Manufacturing Industrial Units of Gujarat for the
period 2000-01 to 2009-10. The main objective of this study was to
analysis and evaluate the financial performance of selected companies
in particular and the plastic industry in general with the help of
composited such ratios like Profitability, Activity, Liquidity and
solvency. He judge the financial performance with the help of Trend

28
Analysis and Analysis of Variance. He can concluded that the
liquidity and profitability performance was not good, but in terms of
activity and solvency performance of industry was satisfactory.

INTERNATIONAL REVIEW

Alovsat Muslumov (2005)analyzed that the privatization was

associated with a declining value added and shareholders‟ profitability
in Turkish cement industry. A decline in the value added and
shareholders‟ profitability were mainly caused by the decrease in
return on assets. The decline in the return on asset was traced to
declining asset productivity. These results are not consistent with
previous cross-sectional privatization studies and number of country
studies

Adolphus J. Toby (2008)has conducted a study on liquidity

performance relationship of Nigerian manufacturing companies. The
results of the study have revealed a significant relationship between
liquidity, .profitability, efficiency and leverage measures. The study
has also made an attempt to suggest that in order to target money
supply, monetary policy could be used to facilitate monetary
transmission mechanism by integrating a minimum liquidity
requirement for the manufacturing industry. Rationale for the present
study.

Haq and Sohail and Zaman and Alam (2011)analyzed The

relationship between Working Capital Management and Profitability:

29
A Case Study of Cement Industry in Pakistan. In this study to
analyzed the relationship between working capital management and
profitability. Researcher selected 14 companies in cement industry in
the Khyber Pakhton khuwa Province (KPK) of Pakistan. The study is
totally depend on secondary data collected from the audited financial
statements of these companies which are listed in Karachi Stock
Exchange for the period spaning 2004-2009. The data was analyzed
using the statistical techniques of correlation coefficient and multiple
regression analysis.

Hajihassani (2012) A Comparison of Financial Performance in

Cement Sector in Iran. This study exhibited comparison of financial
performance for the period study 2006 to 2009. It can be analyzed
comparison of financial performance of selected cement companies by
using various financial ratios and measures of cement companies
working in Iran. Financial ratios are divided into three categories In
this concludes that the performance of cement companies on the basis
of profitability ratios different than on the basis of liquidity ratio and
leverage ratio.

Dr. Abdul Ghafoor Awan, Pervaiz Shahid, Jahanzeb Hassan, Waqas

Ahmad (2014)have analyzed the impact of Working Capital
Management on performance of cement sector in Pakistan. The period
of the study spanning from 2009 to 2013. The study is totally depend
on secondary data collected from the audited financial statements of
these companies which are listed in Karachi Stock Exchange. Return
on was used as the dependent variable in order to test the impact of

30
Working Capital Management on firm‟s profitability and independent
variables were, Inventory Turnover in Days, Cash Conversion Cycle,
Current Ratio, Quick Ratio, Gross Working Capital, Average
Payment, size of firm, and Funds allocated by government in Public
Sector Development Program. Panel Data method is used to study the
impact of Working Capital Management on profitability of Cement
sector of Pakistan. He can concluded that cash conversion cycle,
Inventory turnover in Days and Average Payment Period have
negative relation with firm performance and their probability is
significant. Current Ratio has proved statistically insignificant and has
negative impact on Return on Equity in this study.These Literature
reviews were related to various industries such as cement, steel and
sugar in India and abroad. Of these reviews, there are the major
research conducted on the liquidity and profitability management
through the accounting tools. But no comprehensive study was carried
out on Financial Analysis of cement industry of India-A statistical
Approach to analyze the financial performance of cement industry.

Financial Ratios Analysis

Financial ratios are important to analysts due to conquer the little

meaning of typically numbers. Thus, ratios are intended to provide
meaningful relationship between individual values in the financial
statement (Reilly, Brown, 2006). Because the major financial
statement report numerous individual items, it is possible to produce a
vast number of potential ratios, many which will have little value. A

31
single number from a financial statement is of little use, an individual
financial ratio has a little value except in relation to comparable ratios
for other entities. That is, only relative financial ratios are relevant. A
firm‟s performance relative can be compared by the aggregate
economy; or by its industries; or by its past performance (Reilly,
Brown, 2006). In this thesis, financial ratios used to evaluate
company‟s performance during 2004 – 2008 compared to industry
average performance and other competitors.

Liquidity Ratios Analysis

It is extremely essential for a firm to be able to meet the obligations as
they become due. Liquidity ratios measure the ability of the firm to
meet its current obligations (liabilities). The liquidity ratios reflect the
short-term financial strength and solvency of a firm. In fact, analysis
of liquidity needs the preparation of cash budgets and cash and funds
flow statements; but liquidity ratios, by establishing a relationship
between cash and other current assets to current obligations, provide a
quick measure of liquidity. A firm should ensure that it does not suffer
from lack of liquidity, and also that it does not have excess liquidity.
The failure of a company to meet its obligations due to lack of
sufficient liquidity, will result in a poor credit worthiness, loss of
credit worthiness, loss of creditors‟ confidence, or even in legal
tangles resulting in the closure of the company. A very high degree of
liquidity is also bad; idle assets earn nothing. The firm‟s funds will be
unnecessarily tied up in current assets. Therefore, it is necessary to
strike a proper balance between high liquidity and lack of liquidity.

32
The most common ratios which indicate the extent of liquidity are
lack of it, are:
(i)Current ratio
(ii)Quick ratio.
(iii)Cash ratio and
(iv)Networking capital ratio.

Leverage Ratio:
The short-term creditors, like companysers and suppliers of raw
materials, are more concerned with the firm‟s current debt-paying
ability. On other hand, ling-term creditors like debenture holders,
financial institutions etc are more concerned with the firm‟s long-term
financial strength .In fact a firm should have a strong short as well as
long-term financial strength. In fact a firm should have a strong short-
as well as long-term financial position. To judge the long-term
financial position of the firm, financial leverage, or capital structure
ratios are calculated. These ratios indicate mix of funds provided by
owners and lenders. As a general rule there should be an appropriate
mix of debt and owners equity in financing the firm‟s assets.Leverage
ratios may be calculated from the balance sheet items to determine the
proportion of debt in total financing. Many variations of these ratios
exist; but all these ratios indicate the same thing the extent to which
the firms has relied on debt in financing assets. Leverage ratios are
also computed form the profit and loss items by determining the
extent to which operating profits are sufficient to cover the fixed
charges.

33
Debt Ratio:
Several debt ratios may be used to analyse the long term solvency of
the firm The firm may be interested in knowing the proportion of the
interest bearing debt (also called as funded debt) in the capital
structure. It may, therefore, compute debt ratio by dividing total debt
by capital employed or net assets. Capital employed will include total
debt and net worth

Debt-Equity Ratio:
The relationship describing the lenders contribution for each rupee of
the owners‟ contribution is called debt-equity (DE) ratio is directly
computed by dividing total debt by net worth:

Capital Employed to Net worth Ratio

It is another way of expressing the basic relationship between debt
and equity. One may want to know: How much funds are being
contributed together by lenders and owners for each rupee of owners‟
contribution ?Calculating the ratio of capital employed or net assets to
net worth can find this out:

ACTIVITY RATIOS:
Funds of creditors and owners are interested in various assets to
generate sales and profits. The better the management of assets, the
larger the amount of sales. Activity ratios are employed to evaluate
the efficiency with which the firm manages and utilizes its assets.

34
These ratios are also called turnover ratios because they indicate the
speed with which assets are being converted or turned over into sales.
Activity ratios, thus, involves a relationship between sales and assets.
A proper balance between sales and assets generally reflects that
assets are managed well. Several activity ratios are calculated to judge
the effectiveness of asset utilization.

Inventory TurnoverRatio:
Inventory turnover indicates the efficiency of the firm in producing
and selling its product. It is calculated by dividing the cost of goods
sold by the average inventory.

Inventory Conversion Period:

t may also be of interest to see the average time taken for clearing the
stock. This can be possible by calculating the inventory conversion
period. This period is calculated by dividing the no. of days by
inventory turnover ratio.

Debtors (Accounts Receivable) TurnoverRatio:

A firm sells goods for cash and credit. Credit is used as a marketing
tool by number of companies. When the firm extends credits to its
customers, debtors (accounts receivable) are created in the firm‟s
accounts. Debtors are convertible into cash over a short period and,
therefore, are included in current assets. The liquidity position of the
firm depends on the quality of debtors to a great extent. Financial
analyst applies these ratiosto judge the quality or liquidity of debtors

35
(a) DebtorsTurnover Ratio (b) Debtors Collection Period Debtors‟
turnover is found out by dividing credit sales by average debtors
Net Assets Turnover Ratio:Net assets turnover can be computed
simply by dividing sales by net sales (NA)

Total Assets Turnover:

Some analysts like to compute the total assets turnoverin addition to
or instead of the net assets turnover. This ratio shows the firms ability
in generating sales from all financial resources committed to total
assets.

PROFITABILITY RATIOS
A company should earn profits to survive and grow over a long period
of time. Profits are essential, but it world be wrong to assume that
every action initiated by management of a company should be aimed
at maximizing profits, irrespective of concerns for customers,
employees, suppliers or social consequences. It is unfortunate that the
word profit is looked upon as a term of abuse since some firms always
want to maximize profits ate the cost of employees, customers and
society. Except such infrequent cases, it is a fact that sufficient profits
must be able to obtain funds from investors for expansion and growth
and to contribute towards the social overheads for welfare of the
society.

36
 CHAPTER -7 : Data Collection &
Analysis
Balance Sheet - UltraTech Cement Ltd.
Rs (in Crores)
Particulars Mar'18 Mar'17 Mar'16
12 12 12
Liabilities Months Months Months
Share Capital 274.61 274.51 274.43
Reserves & Surplus 25648.4 23666.5 21357.4
Net Worth 25923 23941 21631.8
Secured Loan 12339.9 2484.4 2007.66
Unsecured Loan 4226.31 2731.56 2998.98
TOTAL LIABILITIES 42489.2 29157 26638.5
Assets
Gross Block 41235.2 25613.5 23876.9
(-) Acc. Depreciation 4024.35 2381.72 1189.31
Net Block 37210.8 23231.8 22687.5
Capital Work in Progress 1473.88 878.39 1415.56
Investments 6162.9 7408.67 5793.18
Inventories 3101.5 2224.99 2277.61
Sundry Debtors 1714.2 1276.17 1414.89
Cash and Bank 199.32 2217.74 2235.2
Loans and Advances 4510.36 2043.37 2466.59
Total Current Assets 9525.38 7762.27 8394.29
Current Liabilities 11261.7 9693.96 11237.5
Provisions 622.1 430.16 414.59
Total Current Liabilities 11883.8 10124.1 11652.1
NET CURRENT ASSETS -2358.4 -2361.9 -3257.8
Misc. Expenses 0 0 0
TOTAL
ASSETS(A+B+C+D+E) 42489.2 29157 26638.5

37
 Profit & Loss Statement of Ultra Tech
Mar '18 Mar '17 Mar '16
12 mths 12 mths 12 mths

Income
Sales Turnover 30,683.93 27,162.42 26,947.14
Excise Duty 893.83 3,270.99 3,238.35
Net Sales 29,790.10 23,891.43 23,708.79
Other Income 397.62 633.03 478.08
Stock Adjustments 113.08 -73.13 17.81
Total Income 30,300.80 24,451.33 24,204.68
Expenditure
Raw Materials 6,397.28 5,315.98 5,338.45
Power & Fuel Cost 5,959.50 3,926.55 4,240.81
Employee Cost 1,706.24 1,413.44 1,343.02
Selling and Admin Expenses 243.49 180 188.23
Miscellaneous Expenses 9,713.39 8,013.38 7,989.49
Total Expenses 24,019.90 18,849.35 19,100.00
Operating Profit 5,883.28 4,968.95 4,626.60
PBDIT 6,280.90 5,601.98 5,104.68
Interest 1,186.30 571.39 511.66
PBDT 5,094.60 5,030.59 4,593.02
Depreciation 1,763.56 1,267.87 1,297.04
Profit Before Tax 3,331.04 3,762.72 3,295.98

PBT (Post Extra-ord Items) 3,331.04 3,762.72 3,295.98

Tax 1,070.56 1,148.23 928.4

Reported Net Profit 2,231.28 2,627.72 2,370.16

Total Value Addition 17,622.62 13,533.37 13,761.55
Equity Dividend 274.52 260.71 293.36
Corporate Dividend Tax 55.89 50.28 0

38
 LIQUIDITY RATIOS:

Current Ratio:
Current ratio is calculated by dividing current assets by current
liabilities.

Current Ratio = Current assets / Current Liabilities

Year Current assets Current Liabilities Current Ratio

2015-16 8394.29 11652.1 0.72

2016-17 7762.27 10124.1 0.77

2017-18 9525.38 11883.8 0.80

11652.1 11883.8
12000
10124.1
9525.38
10000
8394.29
7762.27
8000
Current assets
6000
Current Liabilities
4000

2000

0
2015-16 2016-17 2017-18

39
 Current Ratio

0.8
0.8

0.78 0.77

0.76

0.74
0.72
0.72

0.7

0.68
2015-16 2016-17 2017-18

INFERANCE:
In above table shown the current ratio of three years (2015-2018). The
Current Ratio of Ultra Tech Ltd. Varied from 0.72 to 0.80 with an
average of 0.76 during the study period. The solvency position of
Ultra Tech Ltd. In terms of current ratio was below the standard norm
volume of 2:1 for the entire period. The current Ratio in the year
2017-18 was 0.80. This came up from 072 in the last 2 years This
shows utilization of idle funds in the company.

40
Quick Ratio:
Quick ratio is calculated by dividing Liquid assets by current
liabilities.

Quick Assets = Current Assets - Inventories

Quick Ratio = Quick assets /Current Liabilities

Current Quick Current Quick

Year Inventories
assets Assets Liabilities Ratio
2015-16 8394.29 2277.61 6116.68 11652.1 0.52

2016-17 7762.27 2224.99 5537.58 10124.1 0.55

2017-18 9525.38 3101.5 6423.88 11883.8 0.54

Quick Ratio
0.555 0.55
0.55
0.545 0.54
0.54
0.535
0.53
0.525 0.52
0.52
0.515
0.51
0.505
2015-16 2016-17 2017-18

INFERANCE:
The Ideal Ratio is 1:1 except in the first year the firm‟s has a good
capacity to pay of current obligations immediately and is a test of
liquidity. It was below the standard norm of 1:1 for the entire period.

41
Cash ratio:
Cash Ratio = [Cash + Marketable Securities] / Current Liabilities

Marketable Current Cash

Year Cash
Securities Liabilities Ratio
2015-16 2235.2 5793.18 11652.1 5.16

2016-17 2217.74 7408.67 10124.1 0.95

2017-18 199.32 6162.9 11883.8 0.54

Cash Ratio

6 5.16

2 0.95
0.54
1

0
2015-16 2016-17 2017-18

INFERENCE:
This Cash Ratio indicates that the capacity of the company to realize
current liabilities with its liquidity position .In the above Table the
Cash Position Ratio of Five Years (2015-2018). The Cash Ratio of
Ultra Tech. has undergone many fluctuations. It started with high ratio
at first by 5.16 in the year 2015-16 ;it was decreased to 0.54 by year.

42
Net working capital Ratio:

NWC ratio = Net working capital (NWC) / Capital Employed

Net working Capital NWC
Year
capital Employed Ratio

2015-16 -3257.8 28396.8 -0.11

2016-17 -2361.9 30181.4 -0.08

2017-18 -2358.4 43342.5 -0.05

NWC Ratio

0
2015-16 2016-17 2017-18
-0.02

-0.04
-0.05
-0.06

-0.08 -0.08
-0.1
-0.11
-0.12

INFERENCE:

Net working capital has increase from -0.11 in 2015-16 to -0.05 in

2018. so this clearly shows that the firm has sufficient amount of
working capital.

43
LEVERAGE RATIOS:

Debt Ratio:

Debt ratio = Total debt (TD)/ [Total debt (TD) + Net worth (NW)]

Year Total Debt Net Worth TD + NW Debt Ratio

2015-16 5006.64 21631.8 26638.44 0.19

2016-17 5215.96 23941 29153.96 0.18

2017-18 16566.19 25923 42489.19 0.39

Debt Ratio

0.39
0.4
0.35
0.3
0.25 0.19 0.18
0.2
0.15
0.1
0.05
0
2015-16 2016-17 2017-18

INFERENCE:
The Ratios indicates that the company was taken less debt in the first
two years and they increased their debt taken for further years. The
Debt Ratio is started with 0.19 in the year 2015-16 and it was
increased to 0.39 in the year 2017-18

44
Debt –equity ratio:
Debt –equity ratio = Total debt (TD) / Net worth (NW)
Debt-Equity
Year Total Debt Net Worth
Ratio

2015-16 5006.64 21631.8 0.23

2016-17 5215.96 23941 0.22

2017-18 16566.19 25923 0.64

Debt-Equity Ratio

0.64
0.7
0.6
0.5
0.4
0.23 0.22
0.3
0.2
0.1
0
2015-16 2016-17 2017-18

INFERENCE:
The standard norm for the ratio is 2:1. The actual debt-equity ratio in
the above table shows, all years less than the stand ratio This indicates
from the study that the firm tries to reduce the debt and reducing
financial risk of the firm.

45
COVERAGE RATIOS:
Interest Coverage Ratio:
Interest Coverage Ratio = EBIT / Interest
Interest
Year EBIT Interest
Coverage Ratio

2015-16 3810.22 511.66 7.45

2016-17 4361.03 571.39 7.63

2017-18 4714.42 1186.30 3.97

Interest Coverage Ratio

7.45 7.63
8
7
6
5 3.97
4
3
2
1
0
2015-16 2016-17 2017-18

INFERENCE:
Interest coverage ratio 7 to 8 percent is considered an ideal. .The
interest coverage ratio is increased during the study period from 7.45
in 2015-16 to 7.63 in 2016-17 and gone down to 3.97 in 2017-18.

46
ACTIVITY RATIOS:
Inventory turnover Ratio:
Inventory turnover Ratio = Cost of goods sold /Average inventory
Or Net Sale / Inventory
Inventory Turnover
Year Net Sales Inventory
Ratio

2015-16 23708.79 2277.61 10.41

2016-17 23891.43 2224.99 10.73

2017-18 29790.10 3101.5 9.61

Inventory Turnover Ratio

10.73
10.8
10.6 10.41
10.4
10.2
10
9.8 9.61
9.6
9.4
9.2
9
2015-16 2016-17 2017-18

INFERENCE:
The Inventory Turnover Ratio increased and decreased on the buys of
sales that sales increased. The ratio increased because the year sales
are increased. The ratio is decreased because the year sales are
decreased.

47
Inventory conversion period:

Inventory conversion period =No. of days in the year / Inventory

turnover ratio

No. of days in a Inventory Inventory

Year
year Turnover Ratio conversion period

2015-16 360 10.41 35 days

2016-17 360 10.73 34 days

2017-18 360 9.61 37 days

Inventory conversion period

37.5
37
37

36.5

36

35.5
35
35

34.5
34
34

33.5

33

32.5
2015-16 2016-17 2017-18

48
Debtor turnover Ratio:
Debtor Turnover Ratio = Credit Sales / Debtors
Debtor Turnover
Year Credit sales Debtors
Ratio

2015-16 26947.14 1414.89 19 .04

2016-17 27162.42 1276.17 21.28

2017-18 30683.93 1714.2 17.90

Debtor Turnover Ratio

22

21

20

19

18

17

16
2015-16 2016-17 2017-18

INFERENCE:
Debtors Turnover Ratio should be very high then only the company
will be receiving its debts with in a short period. It indicates the
company has taken less time to convert the credit sales into cash. In
the above Table shows the Debtors turnover ratio of three years
(2015-2018).

49
Debtors Collection period:
Debtors Collection period = 360 / Debtors Turn Over ratio
No. of days Debtor Turnover Debtors Collection
Year
in a Year Ratio period

2015-16 360 19 .04 19 days

2016-17 360 21.28 17 days

2017-18 360 17.90 20 days

Debtors Collection period

20.5 20
20
19.5 19
19
18.5
18
17.5 17
17
16.5
16
15.5
2015-16 2016-17 2017-18

INFERENCE:
If the Debtors Turn over Ratio increases the debtors collection period
will be short. If the debtors turnover ratio decreases the debtors
collection period will take long time. In the above Table shows the
Debtors Collection Period (Days) of three years (2015-2018). During
the year 2015-16 the period of days is 19 days. It is decreased to 17
days in 2016-17. It again increased to 20 days in the year 2017-18.

50
Total Assets Turnover Ratio:
Total Assets Turnover Ratio = Sales / Total Assets

Total Asset
Year Sales Total Asset
Turnover Ratio

2015-16 26947.14 26,638.47 1.01

2016-17 27162.42 29,156.97 0.93

2017-18 30683.93 42,489.21 0.72

Total Asset Turnover Ratio

1.2 1.01
0.93
1
0.72
0.8
0.6
0.4
0.2
0
2015-16 2016-17 2017-18

INFERENCE:
Total Assets Turnover Ratio of the company is rotating their assets
into business purpose. It shows that the company can able to rotate the
total assets in the business. Above Table shows the Total Assets
Turnover Ratio for the period of five years (2015-2018). Total assets
turnover ratio was 1.01 in 2015-16 and 0.72 in 2017-18.

51
Working Capital Turnover Ratio:
Working Capital Turnover Ratio =Sales / Working Capital
Working Capital
Year Sales Working Capital
Turnover Ratio

2015-16 26947.14 -3257.8 -8.27

2016-17 27162.42 -2361.9 -11.5

2017-18 30683.93 -2358.4 -13.01

Working Capital Turnover Ratio

0
2015-16 2016-17 2017-18
-2

-4

-6

-8
-8.27
-10

-12
-11.5
-14 -13.01

INFERENCE:
In the above Table and Chart the velocity of the utilization of Net
Working Capital. It has been observed that the working capital
turnover ratio of Ultra Tech Ltd. In the above Table shows the
Working Capital Turnover Ratio of five years (2015-2018).

52
PROFITABILITY RATIOS:
Net Profit Ratio:
Net profit Ratio = [ Net Profit / Sales ] x 100

Year Net Profit ( PAT) Sales Net Profit Ratio

2015-16 2,370.16 26947.14 8.80 %

2016-17 2,627.72 27162.42 9.67%

2017-18 2,231.28 30683.93 7.27%

Net Profit Ratio

12.00%
9.67%
10.00% 8.80%
8.00% 7.27%

6.00%

4.00%

2.00%

0.00%
2015-16 2016-17 2017-18

INFERENCE:
Net profit ratio was 8.8%, 9.67%, and 7.27% in respective year
of 2015-16,2016-17 and 2017-18 so the company achieved
maximum Net profit ratio in 2016-17.

53
 CHAPTER -8 : Conclusion

The Financial Position of Ultra Tech Cement is satisfactory compare

to other commercial company but has some problems. There have also
some problems in balance sheet others area. The presentation of data
can be summarized as of the following findings:

• Profit rate is low in recent years. So to somebody it is unattractive.

• Profitability performance of ULTRA TECH CEMENT not

satisfactory level because of last 2 years lower growth.

• Liquidity quit good compare to others but they have chance to

improve more.

• Credit management last few year really good because the trend of
nonperforming loan getting lower.

• Overall Financial performance effective if we compare to others

company because of last few years unstable environment in our
country

So overall performance would not been satisfactory level because they

have improved and steadily maintain the assets and income position.
Share price also need to increase with dividend for company‟s
stakeholder.

54
 After analyzing and interpreting the whole financial
statement of UltraTech Cement Ltd. I personality arrived at a
conclusion which are shown at the end of each technique and ratio
which have used for my project study.

In short is can be conclude that part from one or two

exception, the overall performance of the organization is satisfactory.

55
 CHAPTER -9 : Suggestions

 Operating Expenses can reduced by making effective

operating system.

 Company should increase operational efficiency by

providing attractive work environment.

 Company should adopt a stronger recovery policy.

 Look after its profit policy

 To keep pace with the current market and demand, Ultra

Tech is to follow several strategies and taking new
initiatives, offering new products and services to the
customers

56
 CHAPTER -10 : Limitations

Limitations of the Study

From Starting of this study some force has restricted the area of study,
which may interrupt the accuracy, fluency knowledge limitation of
this whole work.

• Study exclusively depends on the published financial data, so it is

subject to all limitations that are inherent in the condensed published
financial statements.

• The study is confined to three years data only (2015–2018). Detailed

analysis covering a lengthy period, which may give slightly different
results, has not been made.

• The study is based on secondary data collected from the website and
branch; so, the quality of the study depends purely upon the accuracy,
reliability and quality of the secondary data source.

• Shorter time frame of internship may be restricted area of study.

57
 CHAPTER -11 : Bibliography
Books :

Name of Book Author Publication

Ratio Analysis Fundamentals Axel Tracy Bidi Capital Pub

Management Accounting R.S.N.Pillai S.chand Pub.

Financial Management I.M.Pande HPH

Internet websites :
www.google.com

www.ultrarechcement.com

www.investopedia.com

Other :
Annual report of Ultra Tech Ltd – 2015-16, 2016-17 & 2017-18

Articles & Journals

58
CHAPTER -12 : Annexure

59
60
61