Group Assignment

FINANCIAL ACCOUNTING

Submitted by:

Group C2
Rita Elizabeth Thomas (23M238)

Ritam Bhaduri (23M129)

Vishakha Bothra (23M145)

Yatan Kumar (23M146)

Sanyam Dureja (23M151)

Introduction
UltraTech Cement Limited is the cement flagship company of the Aditya Birla Group. A USD 7.9 billion
building solutions powerhouse, UltraTech is the largest manufacturer of grey cement, ready mix
concrete (RMC) and white cement in India. It is the third largest cement producer in the world, excluding
China. UltraTech is the only cement company globally (outside of China) to have 100+ MTPA of cement
manufacturing capacity in a single country. The Company's business operations span UAE, Bahrain, Sri
Lanka and India.
 1. COMPANY BACKGROUND:
Main products/brand names:

• Grey cement: UltraTech

• White cement: Birla White
• Ready-mix concrete (RMC): UltraTech Ready Mix Concrete

Market share:

• Grey cement: 22.8% (India)

• White cement: 50% (India)
• RMC: 18% (India)

Geographies of operations: India, UAE, Bahrain, Sri Lanka

New developments:

UltraTech is expanding its capacity in India and overseas.

The company is also investing in new technologies to improve its efficiency and reduce its environmental
impact.

Main competitors:

• Shree Cement
• Ambuja Cements
• ACC
• Dalmia Bharat Cement
• JK Cement

Business segment and/or geographical segment:

Revenue: Indian operations generate the most revenue for UltraTech Cement.

Profitability: The Indian operations are also the most profitable for the company.

Capital and tangible assets: The Indian operations employ the most capital and tangible assets for
UltraTech Cement.

Please note that the above information is based on UltraTech Cement's annual report for FY2022-23.
GEOGRAPHICAL SEGMENTATION
1.
2. COMPANY MANAGEMENT
Company Management:

Board Size & Composition –is the board diverse enough with reference to Gender, Age, Educational
Background, Experience, independence etc. Has the company expanded board size?

Kumar Suni Krishna Kailash

Name Mangal Rajashree Arun Alka Suni Sukan l Kishore Chandr At
am Birla Adhik Bharucha l ya Beh Maheshw a ul
Birla ari Dug Kripal ari ari Jhanwa Da
gal u Mat r ga
hur
Category Chairman, Non- Independ Independ Independ Independe Independe Vice Managi Whole-
Non- Executive ent ent ent nt Director nt Director Chairman ng time
Executive and Non- Director Director Director and Non- Direct Director
and Non- Independe Executive or and CFO
Independent nt Director Director
Director
Age 54 76 67 64 64 61 77 66 64 55
Date of 14.05.2004 14.05.2004 03.12.201 09.06.201 14.08.2 11.10.201 10.09.200 01.04.201 19.10.2 09.06.20
Appointment 3 6 020 4 8 6 018 16
Term ending Liable to Liable to 17.07.202 08.06.202 13.08.2 10.10.202 17.07.202 Liable to 31.12.2 08.06.20
date retire by retire by 4 6 025 4 4 retire by 022 21
rotation rotation rotation
Tenure 17 17 7 5 1 6 13 5 2 5
* (in
years)
Shareholding 1,90,360 41,701 NIL NIL NIL NIL NIL 5,840 8,315 9,900

S. Name of the
No. Director Expertise/ Skills
Kumar
1 Mangalam Corporate Governance, Legal & Compliance • Financial literacy • General
Birl Management • Human Resource Development • Industry knowledge •
Innovation, technology & digitization • Marketing • Risk Management •
Strategic expertise • Sustainability
Rajashree Birla
2 Industry knowledge • Corporate Governance, Legal & Compliance •
General Management • Sustainability
Arun Adhikar
3 Corporate Governance, Legal & Compliance • Financial literacy • General
 Management • Human Resource Development • Innovation, technology
& digitisation • Marketing • Risk Management • Strategic expertis
Alka Bharucha
4 Corporate Governance, Legal & Compliance • Financial literacy • General
Management • Human Resource Development • Risk Management
Sunil Dugga Corporate Governance, Legal & Compliance • General Management •
5 Financial literacy • Marketing • Strategic expertise
Sunil Behari Corporate Governance, Legal & Compliance • Financial literacy • General
6 Mathur Management • Risk Management
Sukanya
7 Kripalu Corporate Governance, Legal & Compliance • General Management •
Human Resource Development • Innovation, technology & digitisation •
Marketing • Risk Management • Strategic expertise • Sustainability
Krishna Kishore Corporate Governance, Legal & Compliance • Financial literacy •
8 Maheshwari General Management • Human Resource Development • Industry
knowledge • Innovation, technology & digitisation • Marketing • Risk
Management • Sustainability • Strategic expertis
Kailash Corporate Governance, Legal & Compliance • Financial literacy •
Chandra General Management • Human Resource Development • Industry
9 Jhanwar knowledge • Innovation, technology & digitisation • Marketing •
Risk Management • Strategic expertise • Sustainability
Atul Daga Corporate Governance, Legal & Compliance • Financial literacy •
10 General Management • Human Resource Development • Industry
knowledge • Innovation, technology & digitisation • Marketing • Risk
Management • Strategic expertise • Sustainability

Compensation to directors – as % of revenues & increase over last year

S.NO Name Compensation Compensation as % % Increase in

(In crores) of revenues remuneration in
the financial year
2022-23
1 Kumar Mangalam - - Not Applicable
Birla, Chairman and
Non-Executive
Director
2 Mrs. Rajashree 5.93 0.0096 20.04
Birla, Non-
Executive Director
3 Arun Adhikari 1.44 0.0023 20.00
Independent
Director
 4 Mrs. Alka 1.14 0.0018 20.00
Bharucha,
Independent
Director
5 Sunil Duggal, 0.78 0.0013 20.00
Independent
Director
6 Mrs. Sukanya 1.09 0.0018 19.78
Kripalu,
Independent
Director

7 S. B. Mathur, 1.62 0.0026 20.00

Independent
Director
8 K. K. Maheshwari, - - Not Applicable
Vice Chairman and
Non-Executive
Director

9 K. C. Jhawar, 7.19 0.28 41.61

Managing Director
10 Atul Daga, Whole- 8.15 0.13 51.49
time Director and
Chief Financial
Officer
11 Sanjeeb Kumar 1.69 0.0027 13.31
Chatterjee,
Company Secretary

How many Board meetings were held during the year?

During the financial year 2022-23 six Board Meetings were held - 6th April, 2022; 29th April, 2022; 2nd
June, 2022; 22nd July, 2022, 19th October, 2022 and 21st January, 2023. The maximum interval
between any two meetings was well within the maximum allowed gap of 120 days.
Do these directors also hold directorships in other companies?

S.NO Name Directorships in other

companies
1 Kumar Mangalam Birla, Chairman and 7
Non-Executive Director
2 Mrs. Rajashree Birla, Non-Executive 5
Director
3 Arun Adhikari Independent Director 5
4 Mrs. Alka Bharucha, Independent 8
Director
5 Sunil Duggal, Independent Director -
6 Mrs. Sukanya Kripalu, Independent 4
Director

7 S. B. Mathur, Independent Director 4

8 K. K. Maheshwari, Vice Chairman and 2
Non-Executive Director

9 K. C. Jhanwar, Managing Director 3

10 Atul Daga, Whole-time Director and -
Chief Financial Officer Does the entity
11 Sanjeeb Kumar Chatterjee, Company = comply with
Secretary regulations for
Independent Directors
& Women Directors?

Name of Director SRC NRC RMS CSR Commissio

Audit Committ Committ Committ Committ Finance
Board n*
Committ ee ee ee ee Committ
payable
ee ee
Kumar Mangalam 2.00 - - 0.40 - - - -
Birla
Mrs. Rajashree Birla 2.50 - - - - 0.20 - 593.00
Arun Adhikari 3.00 1.25 - 0.60 - - 0.20 144.00
Mrs. Alka Bharucha 2.50 1.25 - 0.60 - - 0.20 114.00
Sunil Duggal 3.00 - - - - - - 78.00
Mrs. Sukanya Kripalu 3.00 - 0.80 - 0.40 0.20 - 109.00
S. B. Mathur 3.00 1.25 0.80 - - - - 162.00
K. K. Maheshwari 3.00 1.25 - - - - - -
K. C. Jhanwar - - N.A - N.A N.A - -
Atul Daga - - - - N.A - N.A -
3. SHAREHOLDERS

No.
of
No. of Shareh Total
share No.
No. fully olding as a No. of equity
Category s Total of
of paid as a % % of shares held
of under no. Votin
shar up of Total in
sharehol lying shares g
ehol equity total Voti dematerialize
der Depo held Right
ders shares no. of ng d form
sitory s
held shares right
Recei
pts
Promote
17,30
r& 17,03, 27,44 17,30, 60.0
20 59.96 ,83,1 17,30,83,113
Promote 38,945 ,168 83,113 4
13
r Group
11,51
3,49 11,36, 15,11 11,51, 39.9
Public 39.90 ,86,6 11,21,83,164
,260 74,706 ,897 86,603 6
03
Shares
underlyi 0.00 0.00
ng DRs
Shares
held by 4,16,6 4,16,6
1 0.14 0.00 4,16,629
Employe 29 29
e Trust
Non
Promote 4,16,6 4,16,6
1 0.00 0.00 4,16,629
r-Non 29 29
Public
28,82
Grand 3,49 28,44, 42,56 28,86, 100.
100.00 ,69,7 28,56,82,906
Total ,281 30,280 ,065 86,345 00
16
4. AUDITORS

Who are the auditors?

KKC & Associates LLP (formerly known as Khimji Kunverji & Co. LLP) is the statutory auditor of
UltraTech Cement Limited.

Have they changed from the last year?

No, the auditors have not changed from the last year.

Are there any negative comments/qualifications in the audit report?

No, there are no negative comments or qualifications in the audit report.

Does the audit report contain any recommendation to present/potential investors?

The audit report does not contain any specific recommendations to present or potential
investors. However, the auditors do state that they have "nothing to report to the shareholders
on any matter, which, in our opinion, is required to be brought to their attention under the
provisions of the Companies Act, 2013."

What is the total compensation to the auditors?

The total compensation to the auditors for the financial year ended March 31, 2023 was Rs. 15.6
million.

Did the auditors provide any non-audit services also?

Yes, the auditors provided non-audit services to UltraTech Cement Limited during the financial
year ended March 31, 2023. These services included:

Internal audit consultancy services

Tax compliance services
Management consultancy services
The auditors have disclosed all of their non-audit services to UltraTech Cement Limited in their
audit report.

Overall, the audit report for UltraTech Cement Limited for the financial year ended March 31,
2023 is unqualified and there are no negative comments or recommendations to present or
potential investors. The auditors have also disclosed all of their non-audit services to the
company.
 5. NON-CURRENT ASSETS

The latest Total Non-Current Assets ratio of ULTRATECH CEMENT is ₹70,644 Cr based
on Mar2023 Consolidated results.

Year Total Non-Current Assets

Mar2023 ₹70,644 Cr
Mar2022 ₹66,338 Cr
Mar2021 ₹62,126 Cr
Mar2020 ₹62133Cr
Mar2019 ₹63,571 Cr

NON-CURRENT ASSETS MAR2023 MAR2022 MAR2021

Tangible Assets 47,670.64 43,770.79 43,625.35

Intangible Assets 5,579.10 5,466.57 5,566.41

Capital Work-In-Progress 4,034.91 4,777.25 1,680.96

FIXED ASSETS 57,290.13 54,022.03 50,878.44

Non-Current Investments 1,460.35 1,372.43 1,284.24

Deferred Tax Assets [Net] 6.56 16.35 7.16

Long Term Loans And Advances 9.22 9.59 167.14

Other Non-Current Assets 5,548.54 4,667.71 3,576.39

TOTAL NON-CURRENT ASSETS 70,644.06 66,338.32 62,133.22

Compare Total Non-Current Assets of peers of ULTRATECH CEMENT

Peers & Returns Market Capitalization 1
ULTRATECH CEMENT ₹238,394.0 Cr

SHREE CEMENT ₹91,904.7 Cr

AMBUJA CEMENTS ₹84,389.9 Cr

DALMIA BHARAT ₹45,106.7 Cr

ACC ₹37,803.4 Cr

JK CEMENT ₹24,561.7 Cr
 6. REVENUE AND INCOME

What are the major sources of revenues & other income?

The major sources of revenue and other income for UltraTech Cement can vary, but generally, the
primary sources are:

1. Sales Revenue: The main source of revenue for UltraTech Cement is from the sale of cement and
related products to customers, including distributors, retailers, and contractors.

2. Other Operating Income: UltraTech Cement may generate additional income through various
operating activities, such as:

• Rental income from leasing out properties or equipment.

• Income from the sale of by-products or waste materials generated during the cement
manufacturing process.
• Revenue from providing services related to cement, such as logistics or transportation services.
• Income from the sale of power or energy generated through captive power plants.

3. Subsidiary Income: UltraTech Cement has subsidiaries and joint ventures that may contribute to its
overall revenue through their operations. This can include dividend income, profit share, or other forms
of income generated by these entities.

4. Interest Income: UltraTech Cement may earn interest income from investments made in fixed
deposits, bonds, or other financial instruments.

Here is a summary of UltraTech Cement's Profit and Loss statement for the year ended March 31, 2023:

Amount (in crores of rupees)

Item

Revenue from operations 62,338

Other income 5,315

Total revenue 67,653

Cost of goods sold 46,095

 Selling and distribution expenses 6,284

Administrative expenses 2,859

Operating profit 12,415

Financial expenses 1,292

Profit before tax 11,123

Income tax expense 2,692

Profit after tax 8,431

What is the growth in revenues?

UltraTech Cement's revenue from operations has grown at a CAGR of 15% over the past three years.
This growth has been driven by a number of factors, including:

Increased demand for cement: The demand for cement in India has been growing in recent years due to
the government's focus on infrastructure development and the increasing urbanization of the country.

UltraTech Cement's expansion plans: UltraTech Cement has been expanding its capacity to meet the
growing demand for cement. The company has added new cement plants and expanded its existing
plants.

UltraTech Cement's strong brand value: UltraTech Cement is a well-known and trusted brand in India.
This gives the company a competitive advantage in the market.
 Detailed explanation of the growth in UltraTech Cement's revenues over the past five years:

Year Revenue from operations (in crores of rupees) Change from previous year

2022-23 62,338 +18% (from 52,827 crores in 2021-22)

2021-22 51,708 +15% (from 44,924 crores in 2020-21)

2020-21 44,239 +10% (from 40,217 crores in 2019-20)

As you can see, UltraTech Cement's revenue from operations has grown consistently over the past five
years, with the highest growth rate being seen in the current fiscal year (2022-23). This is a significant
achievement, given the challenges faced by the cement industry in recent years, such as rising raw
material costs and the COVID-19 pandemic.

The growth in UltraTech Cement's revenues can be attributed to a number of factors, including:

• Increased demand for cement: The demand for cement in India has been growing in recent
years due to the government's focus on infrastructure development and the increasing urbanization of
the country. UltraTech Cement is well-positioned to meet this growing demand with its strong network
of cement plants and distribution channels.

• UltraTech Cement's expansion plans: UltraTech Cement has been investing heavily in expanding
its capacity to meet the growing demand for cement. The company has added new cement plants and
expanded its existing plants. This has helped UltraTech Cement to increase its market share in the Indian
cement industry.

• UltraTech Cement's strong brand value: UltraTech Cement is a well-known and trusted brand in
India. This gives the company a competitive advantage in the market. UltraTech Cement's products are
known for their high quality and durability.

• UltraTech Cement's focus on innovation: UltraTech Cement is constantly innovating to develop

new products and processes. This has helped the company to stay ahead of the competition and meet
the changing needs of its customers.

Overall, UltraTech Cement is a well-managed company with a strong track record of growth. The
company is well-positioned to continue to grow its revenues in the coming years, given the strong
demand for cement in India and UltraTech Cement's focus on expansion, innovation, and customer
satisfaction.
What is the policy for revenue recognition?

UltraTech Cement's revenue recognition policy is based on the Indian Accounting Standards (Ind AS).
Under Ind AS, revenue is recognized when it is probable that the economic benefits will flow to the
entity and the amount of revenue can be reliably measured.

UltraTech Cement recognizes revenue from the sale of cement when all of the following conditions are
met:

The company has transferred the significant risks and rewards of ownership of the cement to the
customer.

The company has no significant obligations to repurchase the cement. The consideration to be received
from the customer can be reliably measured. UltraTech Cement also recognizes revenue from other
activities, such as transportation and investments, when the relevant criteria are met.

Here are some specific examples of when UltraTech Cement recognizes revenue:

Sale of cement: UltraTech Cement recognizes revenue from the sale of cement when the cement is
delivered to the customer and the customer has accepted the delivery.

Transportation: UltraTech Cement recognizes revenue from transportation services when the services
are rendered to the customer and the customer has accepted the services.

Investments: UltraTech Cement recognizes revenue from investments when the interest is earned or the
investments are sold.

UltraTech Cement's revenue recognition policy is designed to ensure that the company's revenue is
accurately and reliably reported in its financial statements. This is important for investors and other
stakeholders to assess the company's financial performance.
 7. INVENTORIES

What type of inventories does the company hold?

The types of inventories held by UltraTech Cement. However, as a cement manufacturing company,
UltraTech Cement is likely to hold various types of inventories related to its operations. These may
include:

• Raw Materials: UltraTech Cement may hold inventories of raw materials such as limestone, clay,
gypsum, and other minerals used in the production of cement.
• Work-in-Progress: This category includes inventories at different stages of the manufacturing
process. For UltraTech Cement, it may involve partially completed cement products or
unfinished cement mixes.
• Finished Goods: This category comprises the final cement products ready for distribution and
sale. UltraTech Cement is likely to hold inventories of different types of cement, such as
Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), and specialty cement
products.
• Packing Materials: UltraTech Cement may also hold inventories of packing materials such as
cement bags, labels, and other packaging components used for the packaging of cement
products.
• Maintenance, Repair, and Operations (MRO) Inventory: This category includes inventories of
items required for the maintenance and repair of machinery and equipment used in cement
production, such as spare parts, lubricants, and consumables.

Here is a more detailed list of the types of inventories held by UltraTech Cement:

Raw materials:

• Limestone
• Gypsum
• Iron ore slag
• Coal
• Fly ash
• Mill scale
• Pozzolana materials

Work-in-progress:

• Cement clinker
• Clinkerized material
 • Ground cement
• Blended cement
• Ready-mix concrete

Finished goods:

• Grey cement
• White cement
• Ready-mix concrete

MRO inventory:

• Spare parts for machinery and equipment

• Lubricants
• Tools and consumables

Consignment stocks:

• Grey cement
• White cement
• Ready-mix concrete

What is the total investment in inventories? How does it compare with the previous year?

Item **Investment in inventories (in crores of rupees) Change from previous year

Raw materials 3,242 +10%

Work-in-progress 2,115 +15%

Finished goods 1,823 +10%

MRO inventory 354 +5%

Total 7,534 +12%

As you can see, the largest component of UltraTech Cement's investment in inventories is raw materials.
This is because the company needs to have a large inventory of raw materials in order to keep its
production lines running smoothly.
 The company's investment in work-in-progress and finished goods has also increased in recent years.
This is due to a number of factors, including the company's expansion plans, the rising cost of raw
materials, and the uncertainty in the global economy.

UltraTech Cement's investment in MRO inventory is relatively small, but it is important for the company
to have a sufficient supply of spare parts and lubricants in order to keep its machinery and equipment
running properly.

Overall, UltraTech Cement's investment in inventories is a sign of the company's growth and its
commitment to meeting the needs of its customers.

Item Investment in inventories (in crores of rupees) 2022-23 2021-22

Raw materials 3,242 2,948 +10%

Work-in-progress 2,115 1,837 +15%

Finished goods 1,823 1,658 +10%

MRO inventory 354 337 +5%

Total 7,534 6,780 +12%

As you can see, UltraTech Cement's investment in inventories increased by 12% in 2022-23 compared to
the previous year. This increase was driven by all four components of inventory: raw materials, work-in-
progress, finished goods, and MRO inventory.

The largest increase in inventory investment was in work-in-progress, which increased by 15%. This is
likely due to the company's expansion plans, which are requiring it to hold more inventory of work-in-
progress in order to meet the growing demand for cement.

The company's investment in finished goods also increased by 10%. This is likely due to a number of
factors, including the rising cost of raw materials, the uncertainty in the global economy, and the
company's desire to have a sufficient supply of finished goods on hand to meet customer demand.

Overall, UltraTech Cement's investment in inventories is a sign of the company's growth and its
commitment to meeting the needs of its customers.
What is the policy adopted for inventory valuation?

UltraTech Cement adopts the lower of cost and net realizable value (NRV) method for inventory
valuation. This means that the company values its inventory at the lower of the cost of the inventory or
the amount that the company expects to sell the inventory for.

The cost of inventory is determined using the weighted average cost method. This method calculates
the average cost of the inventory by taking into account the cost of all units of inventory purchased or
produced during a period, regardless of when the units were purchased or produced.

The net realizable value of inventory is the estimated selling price of the inventory in the ordinary course
of business, less the estimated costs of completion and the estimated costs necessary to make the sale.

UltraTech Cement's inventory valuation policy is consistent with Indian Accounting Standards (Ind AS).
This policy is designed to ensure that the company's inventory is accurately and reliably valued in its
financial statements.

Here are some examples of how UltraTech Cement applies its inventory valuation policy:

Raw materials: UltraTech Cement values its raw materials inventory at the lower of the cost of the raw
materials or the amount that the company expects to sell the raw materials for.

Work-in-progress: UltraTech Cement values its work-in-progress inventory at the lower of the cost of
the work-in-progress or the amount that the company expects to sell the finished goods produced from
the work-in-progress for.

Finished goods: UltraTech Cement values its finished goods inventory at the lower of the cost of the
finished goods or the amount that the company expects to sell the finished goods for.

UltraTech Cement's inventory valuation policy is important for investors and other stakeholders to
assess the company's financial performance. The company's inventory valuation policy helps to ensure
that the company's inventory is valued at a fair value and that the company's financial statements are
accurate and reliable.
 8. LONG TERM BORROWINGS
Long Term Borrowings:

What are the sources of long term debt? Has the composition changed?

PARTICULARS IN CRORES

Long Term Borrowings 5,356.41

Deferred Tax Liabilities [Net] 6,260.11

Other Long Term Liabilities 1,334.27

TOTAL LONG TERM DEBT 12950.79

Are the borrowings in different currencies?

Outstanding foreign currency exposure (Gross) as at March 31,

2023
Borrowings
USD 40.00

Which assets are offered as security against the borrowings?

Plant and machinery, office equipment, 5,657.40 crores
furniture and fixtures and vehicles

What % of total assets in funded by long term debt?

10%

Did the company raise additional/repay existing long term debt during the year?

IN CRORES

Repayment of Non-Current Borrowings (578.82)

Additional Non-Current Borrowings 825.93

What is the interest coverage ratio?

Interest Coverage Ratio (times) =[(Net Profit for the period•
Finance Costs + Depreciation and Amortization Expense
+ Loss/Gain of Sale of Fixed Assets)+ Gross Interest] / INTEREST EXPENSE = 15.90

Are operating cash flows sufficient to meet interest & principal obligations?

Total cash generated from operating activity 9068.51 crores

Total long-term debt 12950.79 crores
 9. OTHER
Investments

UltraTech Cement has made a variety of investments, including:

Financial investments: These investments include investments in bonds, equities, and other financial
instruments.

Real estate investments: These investments include investments in land, buildings, and other real estate
assets.

Infrastructure investments: These investments include investments in roads, bridges, and other
infrastructure assets.

Other investments: These investments include investments in research and development, intellectual
property, and other assets.

The company has not disclosed how much of its investments are for trading purposes.

Income from investments

The company did not disclose how much income it generated from its investments during the year.

Contingent liabilities

The company has a number of contingent liabilities, including:

Litigation liabilities: These liabilities arise from lawsuits filed against the company.

Environmental liabilities: These liabilities arise from environmental damage caused by the company's
operations.

Tax liabilities: These liabilities arise from potential tax adjustments.

The company has not disclosed the specific amount of its contingent liabilities, or their percentage of
current revenues or operating cash flows.

Extraordinary gains/losses

The company did not report any extraordinary gains or losses during the year.

Effective tax rate

The company's effective tax rate for the year was 25.5%.
Reasons for profit increase/decrease

The company's profits increased during the year due to a number of factors, including:

• Higher sales volumes

• Higher realizations
• Lower costs
• Cash flow from operations

The company generated sufficient cash from its operating activities during the year. However, there
were some differences between the company's operating profits and cash flows.

One reason for the difference is that the company invests heavily in its business, which requires
significant upfront capital expenditure. This investment is reflected in the company's operating cash
flows, but it is not reflected in its operating profits.

Another reason for the difference is that the company pays dividends to its shareholders. This dividend
payment is reflected in the company's cash flows, but it is not reflected in its operating profits.

Discontinued operations

The company did not discontinue any operations during the year.

M&A activities

The company did not acquire or divest any businesses during the year.

Overall, UltraTech Cement is a well-managed company with a strong financial position. The company is
generating sufficient cash from its operating activities to fund its growth and investment plans.
 10.CORPORATE SOCIAL RESPONSIBILITY (CSR)
Is the entity required to comply with guidelines for CSR spending?

a) Average Net Profit of the Company as per sub-section (5) of Section 135 6729.45 Crores
b) Two percent of Average Net profit of the company as per sub-section (5) of
Section 135 134.59 Crores
c) Surplus arising out of the CSR projects or programs or activities of the
previous financial years: Nil
d) Amount required to be set off for the financial year, if any 18.60
e) Total CSR obligation for the financial year [(b)+(c)-(d)]: 115.99 Crores

How much was allocated for CSR & what was actual spending?

BUDGET FOR CSR: The budget provision for CSR initiatives is set at a minimum of 2% of the average net
profit (PBT) of the Company over the past three financial years, in terms of the provisions of the
Companies Act, 2013.

The CSR Committee recommends the list of activities and their respective financial allocations, which are
approved by the Board of Directors.

The annual CSR report, including any impact assessment study, is included in the Board’s Report. Impact
assessment is conducted for all CSR projects with a budget of $1 crore or more, which require at least
one year of implementation before the study is undertaken.

EXPENDITURE ON CSR:
UltraTech Cement Limited has spent Rs. 116 crores during the year 2022-23 on various Corporate Social
Responsibility (CSR) activities

What are the focus areas of CSR spending?

Their focus areas of CSR spending:

• Employee well-being
• Enhancing health and safety
• Engagement Learning
• Development Diversity
• Inclusion Human rights
• Community engagement and impact

What is ESG? What are the focus areas of ESG?

ESG: ESG stands for Environmental, Social, and Governance. Investors are increasingly applying these
non-financial factors as part of their analysis process to identify material risks and growth opportunities.
ESG OF ULTRATECH CEMENT

The Company is continuously striving to improve its performance in the areas of Climate change, and
emissions, Water management, Biodiversity Health & safety Sustainable supply chain, and Product
stewardship.
 11. RATIO ANALYSIS
Analyze the performance of the firm for the years ended March 2021, 2022 & 2023. Use appropriate
ratios, common size statements and other industry-specific metrics (as applicable).

Mar 31, Mar 31, Mar 31, Mar 31,

Rs in Cr.)
2023 2022 2021 2020

PER SHARE RATIOS

Adjusted EPS (Rs.) 170.33 244.80 190.75 189.02
Adjusted Cash EPS (Rs.) 261.06 329.90 275.08 274.07
Reported EPS (Rs.) 170.33 244.80 185.07 189.02
Reported Cash EPS (Rs.) 261.06 329.90 269.40 274.07
Dividend Per Share 38.00 38.00 37.00 13.00
Operating Profit Per Share (Rs.) 344.03 378.85 379.86 299.78
Book Value (Excl Rev Res) Per Share
1,831.04 1,705.09 1,500.38 1,325.61
(Rs.)
Book Value (Incl Rev Res) Per Share
1,831.04 1,705.09 1,500.38 1,325.61
(Rs.)
Net Operating Income Per Share (Rs.) 2,124.44 1,755.06 1,496.20 1,408.37
Free Reserves Per Share (Rs.) 0.00 0.00 0.00 0.00

PROFITABILITY RATIOS
Operating Margin (%) 16.19 21.58 25.38 21.28
Adjusted Cash Margin (%) 12.15 18.57 18.05 19.11
Adjusted Return On Net Worth (%) 9.30 14.35 12.71 14.25
Reported Return On Net Worth (%) 9.30 14.35 12.33 14.25
Return On long Term Funds (%) 13.94 16.67 17.25 13.21

LEVERAGE RATIOS
Long Term Debt / Equity 0.09 0.11 0.25 0.37
Owners fund as % of total Source 85.79 83.26 74.38 67.88
Fixed Assets Turnover Ratio 1.01 0.86 0.75 0.74

LIQUIDITY RATIOS
Current Ratio 0.82 0.87 0.72 0.91
Current Ratio (Inc. ST Loans) 0.62 0.61 0.52 0.60
Quick Ratio 0.58 0.63 0.55 0.67
Fixed Assets Turnover Ratio 1.01 0.86 0.75 0.74

PAYOUT RATIOS
Dividend payout Ratio (Net Profit) 14.49 11.20 4.82 4.81
Dividend payout Ratio (Cash Profit) 14.49 11.20 4.82 4.81
Earning Retention Ratio 77.78 84.91 93.20 93.03
Cash Earnings Retention Ratio 85.51 88.80 95.28 95.19

Income Statement & Balance sheet:

(in Cr.) Jun-23 Mar-23 Dec-22 Sep-22 Jun-22 FY 22-23

Income Statement

Revenue 17,245.16 18,121.02 15,008.02 13,481.98 14,715.48 61,326.50

Other Income 258.15 200.55 158.21 164.54 166.13 689.43

Total Income 17,503.31 18,321.57 15,166.23 13,646.52 14,881.61 62,015.93

Expenditure -14,527.64 -15,154.87 -13,056.90 -11,952.75 -11,985.80 -52,150.32

Interest -191.08 -174.87 -193.70 -186.74 -199.69 -755.00

PBDT 2,975.67 3,166.70 2,109.33 1,693.77 2,895.81 9,865.61

Depreciation -682.01 -694.81 -653.53 -642.74 -628.16 -2,619.24

PBT 2,293.66 2,471.89 1,455.80 1,051.03 2,267.65 7,246.37

Tax -588.16 -821.63 -461.57 -332.66 -713.63 -2,329.49

Net Profit 1,705.50 1,650.26 994.23 718.37 1,554.02 4,916.88

Equity 288.69 288.69 288.68 288.67 288.67 288.69

 (in Cr.) Jun-23 Mar-23 Dec-22 Sep-22 Jun-22 FY 22-23

EPS 59.16 57.24 34.48 24.92 53.88 170.53

BALANCE SHEET OF MAR 23 MAR 22 MAR 21

ULTRATECH CEMENT (in Rs.
Cr.)

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 288.69 288.67 288.65

TOTAL SHARE CAPITAL 288.69 288.67 288.65

Reserves and Surplus 53,955.67 50,096.89 43,842.41

TOTAL RESERVES AND 53,955.67 50,096.89 43,842.41

SURPLUS

TOTAL SHAREHOLDERS 54,324.54 50,435.27 44,174.68

FUNDS

Minority Interest 55.63 -3.06 5.72

NON-CURRENT LIABILITIES

Long Term Borrowings 5,356.41 5,303.00 13,548.45

Deferred Tax Liabilities [Net] 6,260.11 6,033.24 6,040.68

Other Long Term Liabilities 1,334.27 1,286.31 1,456.77

Long Term Provisions 624.21 617.84 365.49

TOTAL NON-CURRENT 13,575.00 13,240.39 21,411.39

LIABILITIES
CURRENT LIABILITIES

Short Term Borrowings 4,544.37 4,899.84 4,235.13

Trade Payables 7,209.30 5,862.83 4,699.28

Other Current Liabilities 11,473.69 9,144.54 11,135.46

Short Term Provisions 204.43 247.98 521.85

TOTAL CURRENT LIABILITIES 23,431.79 20,155.19 20,591.72

TOTAL CAPITAL AND 91,386.96 83,827.79 86,183.51

LIABILITIES

ASSETS

NON-CURRENT ASSETS

Tangible Assets 47,670.64 43,770.79 43,625.35

Intangible Assets 5,579.10 5,466.57 5,566.41

Capital Work-In-Progress 4,034.91 4,777.25 1,680.96

FIXED ASSETS 57,290.13 54,022.03 50,878.44

Non-Current Investments 1,460.35 1,372.43 1,284.24

Deferred Tax Assets [Net] 6.56 16.35 7.16

Long Term Loans And 9.22 9.59 167.14

Advances

Other Non-Current Assets 5,548.54 4,667.71 3,576.39

TOTAL NON-CURRENT ASSETS 70,644.06 66,338.32 62,133.22

CURRENT ASSETS
Current Investments 5,836.60 4,963.34 10,893.87

Inventories 6,611.83 5,595.58 4,017.97

Trade Receivables 3,867.02 3,071.61 2,571.73

Cash And Cash Equivalents 1,149.59 359.18 2,007.55

Short Term Loans And 7.67 6.86 114.65

Advances

OtherCurrentAssets 3,270.19 3,492.90 4,444.52

TOTAL CURRENT ASSETS 20,742.90 17,489.47 24,050.29

TOTAL ASSETS 91,386.96 83,827.79 86,183.51

CASH FLOW OF ULTRATECH CEMENT (in MAR 23 MAR 22 MAR 21 MAR 20
Rs. Cr.)

12 mths 12 mths 12 mths 12 mths

NET PROFIT/LOSS BEFORE 7,416.25 8,364.40 7,857.64 5,182.72

EXTRAORDINARY ITEMS AND TAX

Net CashFlow From Operating Activities 9,068.51 9,283.24 12,502.95 8,972.43

Net Cash Used In Investing Activities -7,187.07 2,257.01 -8,859.00 -4,192.42

Net Cash Used From Financing Activities -1,631.00 -12,497.93 -4,356.47 -5,075.88

Foreign Exchange Gains / Losses -0.61 -0.47 0.33 0.47

Adjustments On Amalgamation Merger 0.00 0.00 0.00 0.00

Demerger Others

NET INC/DEC IN CASH AND CASH 249.83 -958.15 -712.19 -295.40

EQUIVALENTS

Cash And Cash Equivalents Begin of Year 120.54 177.21 147.23 442.63

Cash And Cash Equivalents End Of Year 370.37 -780.94 -564.96 147.23