Financial Statement Analysis of J K Cement

Submitted in partial fulfillment of the requirements for the award of

Bachelor of Commerce

by

Charumathi
R 40740052

DEPARTMENT OF BUSINESS
ADMINISTRATION SCHOOL OF
MANAGEMENT STUDIES

SATHYABAMA
INSTITUTE OF SCIENCE AND TECHNOLOGY

(DEEMED TO BE UNIVERSITY)
Accredited with Grade “A” by NAAC I 12B Status by UGC I
Approved by AICTE
JEPPIAAR NAGAR, RAJIV GANDHI SALAI, CHENNAI - 600
119

APRIL – 2023

1
 DEPARTMENT OF BUSINESS ADMINISTRATION

BONAFIDE CERTIFICATE

This is to certify that this Project Report is the bonafide work of Charumathi
40740052) who carried out the Project Trained at RYAS & RAJAGOPALAN Chartered
Accountants under our supervision for a period of 3 months from January 2023 to
March 2023.

Dr.Rani.J Rajagopalan.S
Internal guide External Guide

Dr. BHUVANESWARI .G, MBA., Ph.D

Dean – School of Management Studies

Submitted for Viva Voce Examination held on 08.05.2023

Internal Examiner External Examiner

2
 DECLARATION

I Charumathi R (40740052)hereby declare that the Project work done by me under

the guidance of Dr.Rani.J (Internal) and Rajagopalan.S (External) at RYAS &
RAJAGOPALAN Chartered Accountants, Door no. 42, 4th Floor, Sindhur plaza,
Montieth Road, Egmore, Chennai -600 008. is submitted in partial fulfillment of the
requirements for the award of Bachelor of Commerce.

DATE: 29.04.2023

PLACE: CHENNAI SIGNATURE OF THE CANDIDATE

3
 ACKNOWLEDGEMENT

I am pleased to acknowledge my sincere thanks to Board of Management of

SATHYABAMA for their kind encouragement in doing this project and for completing
it successfully. I am grateful to them.

I convey my thanks to Dr. G. Bhuvaneswari, MBA., Ph.D., Dean - School of

Management Studies and Dr. A. Palani, M.Com., M.Phil., M.B.A., Ph.D., Head of the
Department, Dept. of Business Administration for providing me necessary support and
details at the right time during the progressive reviews.

I would like to express my sincere and deep sense of gratitude to my Project Guide
Dr. Rani .J for her valuable guidance, suggestions and constant encouragement
paved way for the successful completion of my project work.

I wish to express my thanks to all Teaching and Non-teaching staff members of the
Department of Business Administration who were helpful in many ways for the
completion of the training.

Charumathi R

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 ABSTRACT

Finance is the life blood of any business enterprise. Every business needs finance
for smooth running of the firm. The present study is an attempt to make a financial
performance analysis and changes in financial position of J K Cement Limited as
financial performance influence the liquidity and profitability. Financial statements
used as a management tool by company executive and investor’s in assessing the
overall position and also the operating results of the company. Thus, Financial
Analysis aids to evaluate the financial health of a firm. The main objective of this study
is that to know about the financial performance of the company by identifying the
strength and weakness of the firm and the way by which theoretical accounting
procedures are put into practical usage. It indicates that whether the organization is
improving or worsening in past years. It aims to analyze the liquidity and also about
the profitability position of the firm. The changes can be observed by the comparison
of the balance sheet at the beginning and at the end of the period and these
changes will help in forming an opinion about the progress of a company. Thus, the
overall financial performance of the company is good. The study has been undertaken
for the period of three years from 2018 to 2022.The data used in this study is
secondary data though company´s annual report. This project also involves in an
analysis of financial statements of the company of various statements like Ratio
analysis, common size statement, comparative statement and Trend analysis has
been used to examine to the financial performance and also to make suggestions to
improve the financial flow of the company.

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CHAPTER NO. TITLE PAGE NO.
ABSTRACT VII
LIST OF TABLES IX
LIST OF FIGURES X

INTRODUCTION 1
1.1 Introduction about the financial statement analysis 1
1.2 Industry profile 2
1.3 Company profile 2
1.4 Product profile 4
1
1.5 Statement of the Problem 4
1.6 Need for the Study 5
1.7 Scope of the Study 5
1.8 Objectives of the Study 5
1.9 Limitations of the Study 5
2 2.1 REVIEW OF LITERATURE 6
RESEARCH METHODOLOGY 13
3.1 Research Design 13
3.2 Sources of Data 13
3 3.3 Methodology of the Study 13
3.5 Data Collection 13
3.6 Period of the Study 13
3.7 Analytical Tools 13
DATA ANALYSIS AND INTERPRETATION 18
4
4.1 Percentage Analysis 18
FINDINGS, SUGGESTIONS AND CONCLUSION 39
5.1 Findings of the Study 39
5
5.2 Suggestions 39
5.3 Conclusion 40
REFERENCES 41
ANNEXURE (Questionnaire) 42

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 LIST OF TABLES

TABLE NO. PARTICULARS PAGE NO.

4.1 TABLE SHOWING CURRENT RATIO 18
4.2 PROPRIETARY RATIO 19
4.3 TABLE SHOWING ABSOLUTE LIQUID RATIO 20
4.4 TABLE SHOWING SOLVENCY RATIO 21
4.5 TABLE SHOWING PROPRIETARY RATIO 22
4.6 TABLE SHOWING GROSS PROFIT 24
4.7 TABLE SHOWING OPERATING COST RATIO 25
4.8 TABLE SHOWING THAT OPERATION PROFIT RATIO 26
4.9 TABLE SHOWING NET PROFIT RATIO 27
4.10 TABLE SHOWING RETURN ON SHAREHOLDERS’ 28
FUNDS
4.11 TABLE SHOWING DIVIDEND PAYOUT RATIO 29
4.12 TABLE SHOWING COMPARATIVE STATEMENT 30
4.13 TABLE SHOWING COMMON SIZE BALANCE SHEET 33
4.14 TABLE SHOWING TREND ANALYSIS 36

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 LIST OF CHARTS/FIGURES

CHART NO. PARTICULARS PAGE NO.

4.1 FIGURE SHOWING CURRENT RATIO 18
4.2 PROPRIETARY RATIO 19
4.3 FIGURE SHOWING ABSOLUTE LIQUID RATIO 20
4.4 FIGURE SHOWING SOLVENCY RATIO 21
4.5 FIGURE SHOWING PROPRIETARY RATIO 22
4.6 FIGURE SHOWING GROSS PROFIT 24
4.7 FIGURE SHOWING OPERATING COST RATIO 25
4.8 FIGURE SHOWING THAT OPERATION PROFIT 26
RATIO
4.9 FIGURE SHOWING NET PROFIT RATIO 27
4.10 FIGURE SHOWING RETURN ON SHAREHOLDERS’ 28
FUNDS
4.11 FIGURE SHOWING DIVIDEND PAYOUT RATIO 29

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 CHAPTER-1
INTRODUCTION

1.1 INTRODUCTION ABOUT THE FINANCIAL

STATEMENT ANALYSIS
Finance is the master key that unlocks all production and merchandising
opportunities. For the preparation and administration of financial decisions,
financial success is critical. It is a method of determining how well a firm uses
its assets from its core business mode to generate money, as well as a
method of determining an organization's overall financial health over time.
Every business, large, medium, or small, requires funding to continue
operations and meet its goals. Finance is so important nowadays that it is
rightfully referred to as the "living blood" of businesses. No business can
achieve its goals without enough funding. As a result, the study of financial
performance is critical, as it is the process of calculating the financial results
of a company's operations.
Financial performance analysis is the process of determining a
company's financial strengths and weaknesses by correctly defining the
relationship between balance sheet and profit and loss account components. It
also aids in short- and long-term forecasting, as well as the identification of
growth through the use of various financial techniques in financial
performance analysis. In the development of the Indian economy, the bank
plays a critical role. In emerging countries, a sound and efficient banking
sector provides the required financial inputs to the economy. It also assesses
an organization's overall financial health over a period of time. The financial
performance of an organization is concerned with the bank's financial
strengths and weaknesses, as well as the relationship between the balance
sheet and the income statement.
Meaning of Finance
Business concern needs finance to meet their requirements in the economic
world. Any kind of business activity depends on finance. Hence, it is called as
lifeblood of business organization. Whether the business concerns are small or
big, they need finance to fulfil their business activities. In the modern world,
all the activities are concerned with economic activities and very particular to
earning profit through any venture or activities. The entire business activities
are directly related with making profit. A business concern needs finance to
meet all the requirements. Hence finance may be called as capital, investment,
fund etc., but each item is having different meanings and unique characters.
Increasing the profit is the main aim of any kind of economic activity.
9
Financial Analysis
Financial analysis is the process of Identifying the strength and weakness of
the company with the help of accounting information provided by the financial
 loss account and balance sheet. It is a process of evaluation of relationship
between components part of financial statement to obtain better
understanding of firm position and performance.

2. INTRODUCTION TO THE INDUSTRY

A binder is a substance used in construction that sets, hardens, and

adheres to other materials in order to bind them together. Cement is typically
used to bind sand and gravel (aggregate) together. Cement is mixed with
fine aggregate which produces mortar for masonry, or mixed with sand and
gravel which produces concrete. Concrete is the most widely used material
and is planet's most-consumed resource. Cements used in construction
are usually inorganic, based on lime or calcium silicate, and are graded as
either non-hydraulic or hydraulic, depending on their tendency to set in the
presence of water (see hydraulic and non-hydraulic lime plaster). India is the
world's second-largest cement manufacturer. India's infrastructure and
construction sectors have a lot of room for development, and the cement
industry is expected to benefit greatly from it. Some recent initiatives, such as
the development of 98 smart cities, are expected to give the sector a
significant boost. Several international players, including Lafarge-Holcim,
Heidelberg Cement, and Vicat, have recently invested in the country .The
ready availability of raw materials for making cement, such as limestone and
coal, is a significant factor that aids the sector's development. Cement
production reached 329 million tons (MT) in FY20, with 381 MT forecast by
FY22.However, consumption was 327 MT in FY20 and is expected to rise to
379 MT by FY22.By 2020, cement production capacity is expected to reach 550
MT. Since India has abundant and high-quality limestone deposits throughout
the region, the cement industry has enormous growth potential. The Indian
cement market, according to CLSA (institutional brokerage and investment
group), is seeing increased demand. J K Cement, ACC, DALMIA, and
ULTRATECH Cement are among the company's key players. Cement companies
in India posted a sharp increase in earnings in the second quarter of FY21, as
demand for the industry increased due to rural recovery. The demand outlook
remained high as the rural markets stabilized. CLSA anticipates a 14% YOY rise
in EBITDA in the cement industry for its coverage stocks in FY21.

3. INTRODUCTION OF THE COMPANY

JK Cement Ltd is one of India’s leading manufacturers of Grey Cement and the
third largest White Cement manufacturer in the World. Over four decades, the
Company has partnered India's multi-sectorial infrastructure needs on the
strength of its product excellence, 10 customer orientation and technology
leadership. JK Cement’s operations commenced with commercial production at
its flagship grey cement unit at Nimbahera, Rajasthan in 1975.
The Company has an installed Grey Cement capacity of 14.7 MnTPA as on
it one of the top cement manufacturers in the Country. JK Cement Ltd. is
the No. 1 manufacturer of Wall Putty in the World and the third largest
manufacturer of White Cement, globally, with a total white cement capacity
of 1.20 MnTPA and wall putty capacity of
1.2MnTPA. JK White Cement is sold across 43 countries around the globe
and the
Company has a strong international presence with two subsidiaries, JK
Cement Works Fujairah FZC and JK White Cement (Africa) Ltd.
JK Cement also manufactures White cement & Grey Cement based Value Added
Products like JKC WallMaxX & JKC ShieldMaxX (Wall Putty), JKC LevelMaxX &
JKC LevelMaxX Plus (Coarse Putty), JKC GypsoMaxX & JKC PlastoMaxX
(Gypsum plaster) and JKC TileMaxX- (Tile Adhesive & Grouts).
The Company’s manufacturing plants have modern equipments like Fuzzy
Logic, QCX & other computer based process controls. The use of high-purity
raw materials and quality testing at each stage of the cement manufacturing
process, uphold its quality standards, help to maintain the critical parameters
of its content to ensure product quality.
JK Cement's integrated management systems - ISO 9001, ISO 14001, ISO
45001 and ISO 50001 are certified by Lloyd's Register Quality Assurance
(LRQA), UK and the SA 8000 Management System is certified by RINA, Italy.
All these facilities put together, ensure consistency in quality & performance.
The Company's laboratory is also accredited by National Accreditation Board
for Testing and calibration Laboratories (NABL) - the first for any Indian Cement
Plant. JK Cement Ltd. is also a Member of Indian Green Building Council (IGBC).
JK Cement is a pioneer in felicitating outstanding contributions of architects.
The brainchild of Mr. Yadupati Singhania, Late Managing Director, JK Cement
Ltd., Architect of the Year Award (AYA) was instituted in 1990 to inspire the
professionals to strive towards further raising the bar in architecture standards
of the Country. AYA since then has lived up to its legacy of awarding
excellence every year and has helped pave the way for a better tomorrow
in design.

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4. PRODUCT PROFILE

In India the cement industry has tremendous potential for development as

limestone of good quality is found throughout the country. Cement is an
important element in any construction initiative, from building a small factory
to building multi-purpose projects. It is, therefore, correctly ranked as a basic
industry. The Indian cement sector accounts for about 1.2% of GDP and
employs more than 0.5 million people.
India is the world’s second largest cement producer with ~509 million
tonnes per year (mtpa) of cement production capacity as of March 2019 and
accounts for over 8% of the global installed capacity.
Cement production stood at 28.1 million tons as of July 2019. It is
estimated that the capacity for cement production will reach 550 MT by
2020. Of the total capacity, 98% is owned by the private sector and the
remainder by the public sector. Some 70% of the total production is accounted
for by the top 20 companies.
Industry FDI inflows related to the manufacture of cement & gypsum products
reached US$
5.3 billion between April 2000 and June 2019. In order to boost economic
growth, the Government of India is strongly focused on infrastructure
development and is aiming for 100 smart cities.
The government also intends to expand the capacity of the railways and the
handling and storage facilities to ease the transport of cement and reduce the
cost of transportation. Due to the growing demands of various divisions, i.e.
housing, commercial construction and industrial construction, the demand for
the cement industry is expected to constantly reach 550-600 million tons per
annum by 2025.
India has a lot of development potential in the infrastructure and construction
sectors and is expected to benefit to a large extent from the cement sector.
Some of the recent major initiatives are expected to provide a major boost to
the sector, such as the development of 98 smart cities.

5. STATEMENT OF THE PROBLEM

Analyzing financial performance is the process of evaluating the common parts

of financial statements to obtain a better understanding of firm’s position and
performance. Financial performance analysis enables the investors and
creditors evaluate past and current performance and financial position, and
12
to predict future performance. Financial statement is used to judge the
profitability and financial soundness of a firm. In this study, an attempt is made
to identify the financial strength and weakness of the firm by properly
 relationship between the items in the balance sheet and profit and loss
account of J K Cement ltd.

6. Need for the Study

Study is analytical in nature, meaning that it deals primarily with secondary

data collected from the J K Cement financial statements over the last five
years.

7. Scope of the Study

The study aims to analyze the liquidity, profitability, solvency position of

the company. Liquidity ratios like current ratio, quick ratio etc. is prepared to
analyze the financial position of the company. Profitability of the company is
found out by using ratios like return on net profit ratio, return on capital
employed ratio etc. The changes can be observed by comparison of the
balance sheet at the beginning and at the end of a period and these changes
can help in forming an opinion about the progress of an enterprise.

8. Objectives of the Study

• To analyze the liquidity and profitability position of the firm.

• To compare the balance sheets of different years of the company.
• To evaluate the financial growth of the company using trend analysis.
• To evaluate the financial performance using comparative statements and
common size
statements.

9. Limitations of the Study

1. The period considered for the study is the last 5 years’ financial statement
only. So it is
not possible to find out the life time performance of the company.
2. Figures are rounded off whenever it was necessary.
3. The study is made exclusively on the financial aspects of the company.
4.Most of the information is collected from the financial statements. So the
limitations of financial statements may
13 affect the study.
5. Non-monetary factors like human behavior, their relationship etc. are not
considered.
 CHAPTER 2
2.1 THE MAIN THEME OF RESEARCH

Review of literature
 Kennedy and Muller (2012), has explained that “The analysis and
interpretation of financial statements are an attempt to determine the
significance and meaning of financial statements data so that the forecast
may be made of the prospects for future earnings, ability to pay interest and
debt matureness (both current and long term) and profitability and sound
dividend policy.”
 AL-Dalayeen, (2016) The Indian cement industry is the world's second largest,
employing over a million people across the country. Because India's
construction industry is heavily reliant on the cement industry, it
contributes to the Indian economy. The financial performance of five main
cement companies in India is examined in this paper. The data was collected
from annual reports of cement firms from 2005-06 to 2014-15 and analyzed
using one-way ANOVA as a statistical tool. The data analysis reveals that
there is a considerable difference in the gross profit ratio, net profit ratio,
current ratio, simple ratio, and debt equity ratio among chosen cement
companies in India.
 Andal. V & Suganya. S &and etal (2020) carried out the study on Financial
Performance Analysis of Puma, manufacturer of sports apparels and sports
equipment company. The analysis done by using vertical and horizontal and
also financial ratios have been prepared to know the overall performance of
the company. These analysis and ratios will help the company for the future
growth and to improve the market share of the company. This study finally
concludes that the company is performing well, and it will continue to make
profit and revenues for the next financial years. The current ratio of PUMA has
only reduced and in all other contexts, The financial position of puma is
satisfactory.
 Bansal, (2013) the purpose of this paper is to identify the factors that
influence working capital requirements in the Indian cement industry. ACC
Cement is a firm that is listed on both the NSE (National Stock Exchange) and
the BSE (Bombay Stock Exchange) in India. For this research, data from the
years 2000 to 2012 was used. WCR (working capital requirement) was used
as the dependent variable, with growth in sales, company size, performance,
operating cash flow, operating productivity, debt equity ratio, company
indicator, and raw material price as the independent variables. It was
discovered that the debt to equity ratio is the only factor that influences the
working capital requirements of a company.
14
 Baran, Pastýr, & Baranová, (2016) financial analysis is a powerful method for
fostering the decision-making of various stakeholders in today's volatile global
environment, and it's an essential part of business monitoring. Financial
 growth as well as the risk of bankruptcy.
 Bhayani, (2010) the effectiveness of any company can be used to assess its
profitability. Internal and external factors, such as the size of the business,
liquidity management, expansion of the organization, expense component, and
inflation rate, all have a significant impact on the firm's profitability. The
purpose of this paper is to determine which variables are used to determine
the profitability of the Indian cement industry. The study includes all listed
cement companies operating in India from 2001 to 2008.Backward
regression analysis was used on the study's variables to determine
profitability. The study's findings show that liquidity, company age, operating
profit ratio, interest rate, and inflation rate that plays a role in the profitability
of the Indian cement industry.
 Chandrasekaran. S (2021) Study focused on the Financial performance
Analysis of XI Dynamics India Private Limited. The company is providing
Housing loans and mortgage loans to affordable segments. This study is to
analyze the financial position, identifying the strength and weakness of the
firm and identify the difficult of the processing in mortgage. The study has
been evaluated through secondary data and used various application tools to
evaluate the financial performance like ratio analysis, and comparative
balance sheet. And concluded that the company’s financial performance is
very good and also they are trying to generate more funds from other sources
in order to expand the business.
 Chidambaram Rameshkumar & Dr. N. Anbumani (2013), he argue that Ratio
Analysis enables the business owner/manager to spot trends in a business
and to compare its performance and condition with the average performance
of similar businesses in the same industry.
 Damor, (2012) The cement industry plays an important role in a country's
growth and development. It provides the necessary infrastructure for the
country's economic growth. Villages are home to more than 60% of our
country's inhabitants. Roads, buildings, and other infrastructures provide
opportunities for the large rural population to improve their economic status.
There are many cement manufacturing companies that produce higher- quality
cement. As a result, in the cement industry, there is a need for comparison.
The profitability analysis of the cement industry provides a good picture of the
company's ability to generate profit and its management. This "profitability
analysis" paper covers a wide range of topics such as gross profit, net profit,
return on investment, and return on capital employed, among others.
 Delen, Kuzey, & Uyar, (2013) This paper examines how financial ratios can be
used to assess a company's performance. It aids in the identification of
specific ratios that can accurately predict a company's performance. The
researcher used a two-step data analysis approach, which included: Using
15
exploratory factor analysis (EFA) to determine underlying dimensions of
financial ratios; and Identifying the potential relationship between the firm's
performance and financial ratios using predictive modeling methods. The
 C&RT.
 EL-Maude, (2016) The influence of capital structure on financial performance of
businesses in the Nigerian cement industry is investigated in this research. A
sample of four publicly traded firms was chosen from the study's population of
seven companies. The post factor study design was used to examine the
effects of long and short term debts on Return on Assets (ROA) and Return on
Equity (ROE). The study concluded, however that businesses in the cement
industry's performance is not optimized due to their inability to use debts in
their capital structures. Finally, the paper suggests that cement companies
should promote the use of long-term debt in their capital structures
because it improves financial performance.
 Farah Naz, (2016) Financial output primarily represents business sector
outcomes and results over time, demonstrating the sector's overall
financial health. It shows how effectively a company uses its capital to
increase profits and wealth for its shareholders. This paper conducts a
thorough review of the financial results literature pertaining to Pakistan's
cement industry. Profitability ratios, asset usage ratios, debt ratios, liquidity
ratios, and the cash conversion cycle were used to assess the financial
performance of the cement sector from 2006 to 2014.The expected variable
is Return on Investment (ROI), and the predictor variables are five ratio
parameters. Except the leverage ratios the test analysis discovered that all
parameters have a positive relationship with the dependent variable. To
resolve the study's shortcomings in the future, the number of years considered
should be expanded and other variables such as MVA, CAPM, and EVA should be
reviewed for the research to analyze other variables which might influence
financial results.
 Hasanaj & Kuqi, (2019) The main goal of this research is to identify, predict, and
assess the best future economic conditions and company performance. The
study's other goal is to analyze financial statements and provide information to
financial managers so that they can make business decisions. The financial
statement makes use of tools, analytical techniques, and necessary
procedures for business analysis. It is a diagnostic tool for evaluating
financing activities, investment activities and operational activities as well as
an assessment tool for management decisions and other business decisions.
The analysis of financial statements, respectively the analysis of the
financial reports are used by managers, shareholders, investors and all other
interested parties regarding the company's state.
 Houghton & Woodliff, (1987) The researchers used financial ratios to see if they
could predict business failure in this study. Human Information
Processing (HIP) and environmental predictability prediction were used to
achieve this.
16
 Kanagavalli. G& Devi R.S. (2018) examined a study on Financial Performance of
selected automobile companies. The purpose of the study is to evaluate and
compare the financial performance of selected three companies to rate their
 the risk of different companies, on their strengths and weaknesses. Ratio
analysis helps to compare the financial statements of the firms and comparison
of financial performance also investigated over a period of time. The study
found that there is the positive strong relationship of liquidity ratio. The
Profitability Ratios of Hero Motocorp is higher than other automobile
companies. It shows Hero Motocorp earned high profit and it is good for the
company. After analyzing all the aspects, concern with this research, we can
say that Bajaj Auto and TVS Motors are satisfactory but Hero Motocorp
sustains a good position in the market.
 Kishore Kumar Das & Rupsa Mahapatra (2021) carried out the study on
Financial Performance of MSME sector. MSME is an important pillar of Indian
economy as this sector is continuously contributing greatly to the growth and
development of Indian economy by creating around 70 million
employment, manufacturing more than 6000 products, contributing more
than 45% of manufacturing production and 40% from exports. This study is
done to evaluate the financial performance of MSME Sector. The study is to
know about the financial performance and trends, there are different statistical
tools such as correlation, regression, ANOVA are being used for the analysis
and interpretation. This sector is showing best results and the policies,
innovative plans, are implemented in this sector. This study concluded that
MSME sector is the most demandable and emerging sector which contribute
the most towards national development and financial growth. And also here is
a significant change in the performance of MSME sector is an incremental
way which is a good sign.
 Kumaraswamy, (2016) The current research aims to investigate the influence of
working capital on the firm performance of cement manufacturing Gulf
Cooperation Council (GCC) firms for the period 2008-2014 as an extension of
previous literatures that proven the relationship between working capital and
firm performance. Using linear regression models, four theories about working
capital components were explored. The study discovered a positive
relationship between inventory conversion period and profitability, as well as
a negative relationship between average payment period and company
profitability. According to the regression model, the most important
considerations are average collection period and inventory conversion period,
followed by average payment period. It demonstrates that the average
collection period and high inventory levels have a significant impact on the
profitability of GCC cement manufacturing companies.
 M. Devi, (2017) After China, India has the world's second-largest cement
industry. It contributes significantly to the employment, infrastructure, and
housing sectors. By the financial year 2025, production capacity is expected
to exceed 550-600 million tones per annum (MTPA). The author chose two
organizations for this research. Ultra
17 Tech Cement is India's biggest cement
company and one of the world's top cement producers. India Cement is the
oldest and biggest cement manufacturing company in Tamil Nadu. They
began producing cement in 1949 at their Sankar nagar plant, which was
 conducted. The Ultratech Cement Company's short-term solvency situation
must be improved.
 Mobeen Ur Rehman, (2013) The effect of running assets management on the
profitability of the Pakistan cement industry is investigated in this paper.
Secondly the study outlines the main factor that primarily determines working
capital in the financials of the Pakistan cement sector. To manage a firm's
liquid assets, or working capital management, and to achieve a desired level
of profitability and risk, figures were collected from Annual Reports and a
sample of ten Pakistani cement companies listed on the KSE from 2003 to
2002.
 Mrs.J.Dhivya, (2017) The cement industry in India is the world's second-largest
consumer of the material. Cement firms have seen an 85 percent increase in
net profit. With this enormous achievement, India's cement industry has
contributed nearly 8% to the country's economic growth. ACC Limited is India's
largest cement and concrete producer. With 17 modern cement factories,
more than 40 ready mix concrete plants, 21 sales offices, and some zonal
offices, ACC's activities are spread throughout the country. ACC has a
distinguished track record of achievement in the areas of creative
research, product development, and specialized consultancy. The research is
focused on the ACC LIMITED's financial performance. The main goal is to
examine the cement industry's financial performance, with main objectives
also assessing the industry's profitability, liquidity, and operational position.
The analysis is conducted using secondary data. The information was gathered
from the company's annual report and balance sheet. The data was analyzed
using tools such as ratio analysis and trend analysis. The study's findings
mean that the company's liquidity and solvency are in good shape.
 Muthusamy. A & Karthika. S (2019) examined a study on financial
performanceof selected cement companies in India is to evaluate the
liquidity and profitability of two selected cement firms, their paper on
convenience sampling method was treated. The study analyses the financial
performance of two major Cement companies via., UltraTech Cement Limited
and Shree Cement Limited. Statistical instruments such as the descriptive
and correlation approach used and the five year data outcome measure
suggest that the profitability positionin the two companies is fulfilled, but
the liquidity position in the two companies is not fulfilled.
 Nirmala. M & Pavithra. K (2020) The research was conducted to
investigate the determinants of the financial performance on selected
cement companies In India.Infrastructure is the first key role of demand in
the production of cement. this study, the analysis was done by ratio analysis.
The data for this research used secondary data in nature and data taken from
2009-2010 to 2018-2019. This study concludes that some comparative
18
ratios showing the negative relationship and the companies have to
concentrate and improve in those particular ratios. This study helps the
financial investors, cement companies to know and take decision for future
 management and its various components, such as inventory, cash and bank
balances, and various current liabilities. The goal of the research is to
determine the efficiency and effectiveness of management in each working
capital segment. Because the net concept of working capital has been widely
adopted in this research, the management of both current assets and
existing liabilities will be evaluated in due course. For the study, a sample
list of 30 Bombay Stock Exchange (BSE) listed cement companies from
various parts of India was chosen. The information relating to the nature of the
business, size, age, state and area, business background, value of total assets,
and annual financial statements of sample businesses for the period 2006 to
2015 was derived from the CMIE Prowess 4.0 database software. For the
various statistical analyses necessary for this study, statistical software, SPSS
21.0 edition, is used. The existence of a relationship between working
capital management and profitability, average receivable period, inventory
conversion period, average payment period, and cash conversion cycle,
which expresses working capital efficiency, has been investigated. Profitability
and the number of days of accounts payables and inventory are found to have
a negative relationship, but profitability and the number of days of accounts
receivables have a positive relationship.
 Peeler J. Patsula (2013), he define that a sound business analysis tells others a
lot about good sense and understanding of the difficulties that a company will
face. We have to make sure that people know exactly how we arrived to the
final financial positions. We have to show the calculation but we have to avoid
anything that is too mathematical. A business performance analysis
indicates the further growth and the expansion. It gives a physiological
advantage to the employees and also a planning advantage.
 Sabamaithily, (2016) The purpose of this paper is to investigate the impact of
working capital management (WCM) on profitability of the Indian cement
industry. It focuses on the effect of working capital on performance, taking
into account a variety of factors that influence working capital management.
The study, which is based on secondary data, is restricted to 24 Cement
Industries from the Bombay Stock Exchange. Regression analysis was used to
test six independent variables (CR, QR, WCTR, DTR, FATR, and ITR) and one
dependent variable (ROI). The study's results show that WCM has a significant
effect on selected predictor variables such as (CR, QR) on Profitability (ROI) and
has a significant impact on WCM on P chosen by the cement industry in India
for the study period.
 Shah, (2017) The current research looked at the issues and future prospects
of a few cement companies in India. For the inquiry, only secondary data was
gathered from annual reports of cement industries and industry profiles. The
study spans five years, from 2010- 11 to 2014-15. This research focused solely
on the company's financial issues. 19
Statistical approaches such as Mean, S.D.
(Standard Deviation), and F ANOVA are used to analyze accounting ratios.
 Sharma, (2015) The purpose of this paper is to investigate the effectiveness and
 India has been assessed using various data envelopment analysis (DEA)
models. According to the major conclusions of the DEA analysis, 43 percent of
businesses are found to be technically effective. Returns to scale results
show that 14 companies are experiencing higher returns to scale, 12 are
experiencing declining returns to scale, and the remaining 21 are
experiencing constant returns to scale. The findings show that
international firms are theoretically more efficient than domestic firms, and
that large-scale firms are more scale efficient than small- and medium-scale
firms due to economies of scale. The research emphasizes the importance of
flexibility in inefficient firms' production processes in order to put their
productivity up at par with that of efficient firms.
 Sheela christina (2017) carried out the study on Financial performance of
Wheels India Limited Chennai. The study deals with analytical type of research
design with the help of secondary data collection for this purpose the
researcher took past 5years data and also checked out the validity and
reliability before conducting the study. The researcher used the following
financial tool namely ratio analysis, comparative balance sheet, and DuPoint
analysis and also statistical tools such as trend analysis, and correlation.
Profitability ratios indicate there is a decrease in the profit level, utilization of
fixed assets and working capital in the last financial year. Thus, the company
can take necessary steps to improve sales and profit. Finally, reveals that the
financial performance is satisfactory.
 Tanveer Bagh, (2016) The aim of this research was to investigate the influence
of working capital management (WCM) on the performance of selected
manufacturing companies listed on the Karachi Stock Exchange (KSE).
Quantitative research techniques, such as correlation matrices and multiple
regressions, secondary data, and purposive sampling, have all been devised.
Inventory turnover (ITO), cash conversion cycle (CCC), average collection
period (ACP), and average payment period (APP) have all been used as
independent variables in the WCM (APP). The dependent variable was firm
performance (FP), which included return on asset (ROA), return on equity (ROE),
and earnings per share (EPS). WCM has an impact on the FP of chosen
companies, according to the findings of the research. It will benefit
students' academic, legal, and practical behaviour. The conclusions of the
study provided deeper insights into WCM methods and presented
recommendations that improved the FP of the targeted companies
 ZUBAIR ARSHAD, (2013) The aim of this study is to determine the empirical
influence of the working capital management and profitability of Pakistan
cement industry. In this case, the researcher used a quantitative research
approach to test a research theory. The study used rations from 21 listed
cement companies on the Karachi stock exchange between 2004 and 2010.
The findings revealed that there20is a considerable negative relationship
between working capital management and company's profitability.
 CHAPTER 3
RESEARCH METHODOLOGY

1. Research Design
Research design is the basic frame work which provides guidelines for the rest
of research process. It is a map or a blueprint according to which the research
is conducted. It specifies the methods for data collection and data analysis.

2. Sources of Data
Secondary data had been collected from annual report published by the
Company. These annual reports had been downloaded from the official website of
the company.

3. Methodology of the Study

Research comprises, defining and re-defining problems, formulating
hypothesis or suggesting solution, collecting, organizing and evaluating data,
at last carefully testing the conclusion to determine whether they fit the
formulated hypothesis.

5. Data Collection
Secondary data are those data which are gathered for some other purpose and
are already available in the firm’s internal records and publications. The
secondary data is collected from annual report of the company of the last 5
years from 2018-2022.

6. Period of the Study

The study is made by making comparison of past five (2018-2022) year
of financial information.

7. Analytical Tools
A Number of techniques or devices are used to undertake financial
analysis. The fundamental objective of analytical method is to simply the data
into understandable terms. The following are the important tools of financial
analysis.
1. Comparative statement
2. Common Size statement
3. Trend Analysis 21
4. Ratio Analysis
3.7.1 Comparative Statement
Comparative statement is those statement which is used to study financial
position for two or more periods. It is also Called as horizontal financial
analysis.
Types of Comparative Statement
1 Comparative Balance sheet
2 Comparative Profit and Loss
Account Comparative Balance
Sheet
It shows the account of current assets and current liability on different dates
and also shows the increase and decrease in these accounts. Comparative
Profit and Loss Account It shows the operational results and progress of
business in a given period of time.

3.7.2 Common Size Statement

Common size statement is another technique of financial analysis. Common
size financial statement is those statement in which terms are converted into
percentages taking some common base. These statements are also called
100 percent statement or common percentage. Common size statement
includes common size balance sheet and common size profit and loss account.

3.7.3 Ratio Analysis

The term accounting ratios is used to describe significant relationship
between figures shown on balance sheet, in a profit and loss account, in a
budgetary control system or in any, other part of the accounting organization.
Ratio simply refers to one number expressed in terms of another number. Ratio
analysis is a technique of analysis and interpretation of financial statement. It
is the process of establishing and interpreting the various ratios for helping in
making certain decision. However, ratio analysis is not an end to itself. It is
only a means of better understanding of financial strength, weakness of a
firm. Calculation of mere accounting ratios does not serve any purpose unless
several appropriate ratios are analysed and interpreted.

Objectives of Ratio Analysis

•To study the short-term solvency of a firm.
•To study the long-term solvency of a firm.
•To determine the profitability of a firm.
22
•To measure the performance of a firm.
•To facilitate the process of financial forecasting.
•To communicate the strength and weakness of a firm.
•To enable managerial decision making.

Liquidity Ratio
The term liquidity refers to the firm’s ability to meet its current liabilities.
Liquidity ratios are used to measure the liquidity position or short-term
financial position of a firm. These ratios are used to assess the short-term debt
paying ability of a firm, important liquidity ratios are current ratio and quick
ratio.

Current Ratio
Current ratio may be defined as the relationship between current assets
and current liabilities. This ratio is also known as working capital ratio. It is a
measure of general liquidity and is the most widely used to make the analysis
of short term financial or liquidity of a firm. It is calculated by dividing the total
current assets by total current liabilities and the ideal current ratio is 2:1. It is
calculated as follows

Current Ratio = Current asset /Current liabilities

The higher the current ratio, the greater the firm’s ability to meet the short-
term debts. A very high current ratio indicates too much of money is blocked in
currentassets etc. In short, a very high current ratio indicates that the firm will
find it difficult to pay off its debts.

Quick Ratio
The term liquidity ratio refers to the ability of a firm to pay off its short-term
obligations as and when they become due. Cash in hand and cash at bank are
the most liquid asset. The other assets included in the liquid assets are bills
receivables, sundry debtors, marketable and short term or temporary
investments.
The Ideal liquid or quick ratio is 1:1. The liquid ratio can be calculated
as follows Quick ratio = Liquid assets /Current
liabilities
Quick Assets = Current Assets - (stock + prepaid expenses)
Liquid ratio is considered to be superior to current ratio in testing the liquidity
position of a firm. If the current ratio is 2:1 and quick ratio is 1:1; the liquidity
position may be considered satisfactory.
23 If the current ratio is higher than 2:1,
but quick ratio is less than 1:1, it indicates excessive inventory.
Absolute Liquid Ratio or Cash Ratio
This ratio establishes the relationship between super quick assets and quick
liabilities. And it is taken as a ratio of absolute liquid assets or absolute quick
assets include cash in hand, cash at bank and marketable securities or short-
term investments. It is also known as cash ratio. And ideal absolute liquid ratio
is 0.5: 19
Absolute Liquid Ratio = Absolute Liquid Assets /Current Liabilities

Solvency Ratio
Solvency ratio is one of the various ratios used to measure the ability of a
company to meet its long-term debts. Solvency ratio is also called leverage
ratio. It focuses on the long-term sustainability of a company instead of the
current liability payments.

Proprietary Ratio
Proprietary ratio establishes the relationship between shareholders or
proprietors fund and total assets. This ratio shows how much funds have been
contributed by shareholders in the total assets of the firm. Proprietary ratio is
also known as equity ratio or net worth ratio.
It is computed as follows:
Proprietary Ratio = Shareholder’s fund /Total assets
This ratio shows financial health of the firm. A high ratio indicates safety to
the creditors and low ratio show greater risk to the creditors. The ideal ratio is
0.5:1or above.

Profitability Ratios
The ultimate aim of any business enterprise is to earn maximum profit. To the
management, profit is the measure of efficiency and control. Profitability ratio
measures the ability of the firm to earn an adequate return on sales, total
assets and invested capital.
There are two types of profitability ratios.
First, profitability based on sales and it includes gross profit ratio, operating
ratio, operating profit ratio and net profit ratio.
Second, profitability ratio based on investment and it includes return on
investment, return on shareholders fund ratio, return on equity ratio and
return on total assets. Profit is important for everyone associated with the
company including creditors and owners.

24
Return on shareholder’s fund
This is the ratio of net profit to shareholder’s fund or net worth. It measures the
profitability from shareholders point of view. This ratio is called the ‘mother
owner’s capital.
It is calculated as follows:

Return on shareholders’ fund = Net profit after interest and tax /Shareholder’s
fund

Return in Investment (ROI)

When a firm invest money in a business, it naturally expects adequate
return on its investment. Therefore, the firm wants to know how much profit is
earning on its investment. For this, ROI is computed. It establishes the
relationship between return and investment. It is also called accounting rate of
return.

ROI = Profit before interest and tax /Capital employed

Capital employed may be gross capital employed or net capital employed.

Gross capital employed means total assets minus current liabilities.
Alternatively, it refers to total of share capital, revenue reserves, debenture
and other long-term loans. Profit before interest and tax is calculated as gross
profit minus operating expenses. The ideal return on investment ratio is 15%.
The higher the return on investment, greater is the overall profitability and
more is the efficient use of capital employed.

Net Profit Ratio

Net profit ratio is the ratio of net profits to revenues for accompany or business
segment. It measures the overall profitability.Net profit and net sales are the
two components of net profit ratio. Net profit is the final profit after adjusting
all expenses and all incomes. The main objectives of the ratio is to measure
the overall profitability. This ratio indicates how much of the sales are left after
meeting expenses. The ideal net profit ratio is 5% - 10%.

Net profit ratio = Net Profit×100 /Net sales

Net profits can be taken as profit before tax and profits after tax. Higher the
ratio, better is the profitability.

25
 Chapter 4
DATA ANALYSIS AND INTERPRETATION

1. RATIO ANALYSIS

One of the most powerful tools in financial analysis is the ratio analysis. It is
the procedure for calculating and understanding different ratios. The ratio
analysis is used to investigate a company's liquidity, profitability, and solvency.
The financial statements may be analyzed more clearly with the use of ratios,
and decisions can be taken based on this analysis.

1. Liquidity Ratio
(A)CURRENT RATIO
Current Ratio = Current Asset /Current
Liability (Ideal Ratio = 2:1)
4.1 Table Showing Current Ratio
year Current asset Current liabilities Current ratio
2018 1556.13 1175.38 1.324
2019 1895.21 1436.38 1.319
2020 2115.49 1619.58 1.306
2021 2976.07 1725.60 1.725
2022 3181.36 2327.83 1.366

Figure 4.1 Showing Current

Ratio

CHART TITLE
Current asset Current liabilities
3181.36

Current ratio
2976.07

2327.83
2115.49
1895.21

1619.58
1556.13

1725.6
1436.38
1175.38
1.324

1.319

1.306

1.725

1.366

2018 2019 2020 2021 2022

26
Interpretation:
The above tables shows that the year from 2018-2022 the current ratio is increased
from1.324 to 1.366.
B) QUICK RATIO FORMULA
There's a few different ways to calculate the quick ratio. The most common approach
is to add the most liquid assets and divide the total by current liabilities:

Quick ratio= current asset/ current liabilities

4.2. Table showing quick asset ratio

year Quick asset Current liabilities Quick ratio
2022 2067.79 1175.38 0.88
2021 2289.41 1436.38 1.32
2020 1488.32 1619.58 0.91
2019 1337.34 1725.60 0.931
2018 1024.52 2327.83 0.872

4.2 figure showing quick asset ratio

CHART TITLE
Series 1
2327.83
2289.41

Series 2
2067.79

Series 3
1725.6
1619.58
1488.32
1436.38

1337.34
1175.38

1024.52
0.931

0.872
1.32
0.88

0.91
0
0
0

YEA 2022 2021 2020 2019 2018

R

27
Interpretation:
The above figure shows that the year from 2018-2022 the quick ratio is increased from
0.87 to 0.88.

C) ABSOLUTE LIQUID RATIO

Absolute Liquid Ratio is a type of liquidity ratio that is calculated to analyze the short
term solvency or financial position of the firm. It is calculated to exclude the
receivables from the current and liquid assets and to know about the absolute liquid
assets. Although receivables, debtors and bills receivables are generally more
liquid than inventories, yet there may be doubts regarding their realization into cash
immediately or on time as there are the chances of bad debts. To exclude this
possibility, absolute ratio is calculated. The absolute liquid ratio is also known as
Cash ratio. The absolute liquid ratio formula is:

Absolute Liquid Ratio= Absolute Liquid Assets/ Current Liabilities

Year Absolute liquid asset Current liabilities Absolute liquid ratio
4.3 table showing absolute
2018 liquid ratio:
187.79 1175.38 0.170
2019 202.22 1436.38 0.1407
2020 223.45 1619.58 0.138
2021 316.09 1725.60 0.183
2022 397.79 2327.83 0.170

4.3 figure showing absolute liquid ratio

CHART TITLE
2327.83

Absolute liquid asset Current liabilities

Absolute liquid ratio
1619.58

1725.6
1436.38
1175.38

397.79
316.09
223.45
202.22
187.79

0.1407

0.138

0.183
0.17

0.17

2018 2019 2020 2021 2022

Interpretation:
The above table shows that the year from 2018-2022 the absolute liquid ratio is not
increased and

28
not decreased.

4.1.2 SOLVENCY RATIO:

A solvency ratio is a performance metric that helps us examine a company’s

financial health. In particular, it enables us to determine whether the company can
meet its financial obligations in the long term.

The metric is very useful to lenders, potential investors, suppliers, and any other
entity that would like to do business with a particular company. It usually compares
the entity’s profitability with its obligations to determine whether it is financially
sound. In that regard, a higher or strong solvency ratio is preferred, as it is an
indicator of financial strength. On the other hand, a low ratio exposes potential
financial hurdles in the future.

Solvency Ratio = total debt/ total tangible asset

year
4.4 Total ratio
table showing solvency debt Total tangible asset Solvency ratio
2018 3836.46 3590.52 1.068
2019 4054.46 3624.97 1.118
2020 4726.08 4455.05 1.061
2021 5435.85 4781.02 1.137
2022 6090.59 5340.31 1.140

4.4 figure showing solvency ratio

CHART TITLE
Total debt Total
6090.59

tangible asset Solvency

5435.85

5340.31

ratio
4781.02
4726.08
4455.05
4054.46
3836.46

3624.97
3590.52
1.068

1.118

1.061

1.137

1.14

2018 2019 2020 2021 2022

29
Interpretation:
The above table shows that the year from 2018-2022 the solvency ratio is increased
from 1.06 to 1.14.

4.1.3 PROPRIETARY RATIO:

Proprietary ratio is the one that is used to express a relationship between the amount
invested by proprietors in the business and the total assets owned by the
business. In other words, the proprietary ratio measures the extent of assets
funded by the proprietor’s funds. It denotes the percentage of assets funded by a
shareholder’s fund in a business. The intent is to ascertain the risk involved and
capital stability and also the cost of capital involved.
Proprietary ratio is one of the four main Solvency ratios. Solvency ratios are those
ratios that measure an enterprise’s capability to meet its long-term obligations.
Such measures are made using parameters, like the value of long-term debt, the
assets available within the organisation, the funds invested in the firm, etc.

Proprietary ratio= shareholders fund/ total tangible asset

4.5 table showing proprietary ratio:

Year Shareholders fund Total tangible asset Proprietary ratio
2018 2147.35 3590.52 0.598
2019 2892.81 3624.97 0.798
2020 3128.09 4455.05 0.702
2021 3733.09 4781.02 0.781
2022 4251.67 5310.31 0.796

4.5 figure showing proprietary

ratio:

CHART TITLE
Shareholders fund Total tangible Column1
5310.31

asset Proprietary ratio

4781.02
4455.05

4251.67
3733.09
3624.97
3590.52

3128.09
2892.81
2147.35

0.598

0.798

0.702

0.781

0.796

2018 2019 2020 2021 2022

30
Interpretation:
The above table shows that the year from 2018-2022 the proprietary ratio is increased
from 0.598 to 0.796.

4.1.4 PROFITABILITY RATIO:

Profitability ratios are a class of financial metrics that are used to assess a
business's ability to generate earnings relative to its revenue, operating costs,
balance sheet assets, or shareholders' equity over time, using data from a specific
point in time. They are among the most popular metrics used in financial analysis.

Types of Profitability Ratios

Profitability ratios generally fall into two categories—margin ratios and return ratios.
Margin ratios give insight, from several different angles, into a company's ability to
turn sales into a
profit. Return ratios offer several different ways to examine how well a company
generates a return for its shareholders using the money they've invested.
Some common examples of the two types of profitability ratios are:
A) gross profit ratio
B) operation cost ratio
C) operation profit ratio
D) net profit ratio
E) return on investment ratio
F) dividend payout ratio

A) GROSS PROFIT RATIO:

The gross profit ratio is calculated by dividing the gross profit by the net sales. To
make it easier to read and compare, the result is usually multiplied by 100 so it can
be expressed as a percentage. This allows you to determine what percentage of the
company's revenue is profit.

Gross profit ratio =gross profit*100/net sales.

year
4.6 table showing grossGross
profitprofit Net sales Gross profit ratio
2018 3988.48 4542.59 87.80
2019 4239.99 4919.19 86.19
2020 4677.66 5397.13 86.66
2021 5476.47 6233.42 87.84

31
2022 6665.99 7529.05 88.53

Interpretation:
The above table shows that the year from 2018-2022 the gross profit ratio is
increased from 87.80 to 88.53.

4.6 figure showing gross profit ratio:

CHART TITLE
Gross profit Net sales Gross profit ratio

7529.05
6665.99
6233.42
5476.47
5397.13
4919.19

4677.66
4542.59

4239.99
3988.48

88.53
87.84
86.19

86.66
87.8

2018 2019 2020 2021 2022

B) OPERATION COST RATIO

Also known as operating cost ratio or operating expense ratio, the operating ratio
compares operating expenses to net sales. It's a common metric companies use to
determine how efficient their management is at keeping operating costs low while also
earning revenue or making sales.

Operating cost ratio= operating cost /net sales.

Year
4.7 Operation
table showing operating cost cost
ratio Net sales Operating cost ratio
2018 730.38 4542.59 16.07
2019 821.22 4919.19 16.69
2020 871.99 5397.13 16.15
2021 965.17 6233.42 15.48
2022 1155.39 7529.05 15.34
Interpretatio
n:
32
The above table shows that the year from 2018-2022 the operating cost ratio is
decreased from
16.07 to 15.34.

4.7 figure showing operating cost ratio:

CHART TITLE

7529.05
Operation cost Net sales Operating cost ratio

6233.42
5397.13
4919.19
4542.59

1155.39
965.17
871.99
821.22
730.38

16.69
16.07

16.15

15.48

15.34
2018 2019 2020 2021 2022

C) OPERATING PROFIT RATIO:

Operating profit Ratio = Operating Profit / Net Sales × 100

Since, the operating profit ratio is expressed as a percentage, therefore we need to
multiply by 100, the value obtained by the division of operating profit with the net
sales.

4.8 table showing that operation

profit ratio:
Year Operation profit Net sales Operation profit
ratio
2018 3988.48 4542.59 87.80
2019 4239.99 4919.19 86.19
2020 4677.66 5397.13 86.66
2021 5476.47 6233.42 87.85
2022 665.99 7529.05 8.84
Interpretatio
n:

33
The above table shows that the year from 2018-2022 the operating profit ratio is
decreased from
8.84 to 87.80.

4.8 figure showing that operating profit ratio

Operation profit
CHART TITLE
Net sales Opreration profit ratio

7529.05
6233.42
5476.47
5397.13
4919.19

4677.66
4542.59

4239.99
3988.48

665.99
87.85
86.19

86.66
87.8

8.84
2018 2019 2020 2021 2022

D) NET PROFIT RATIO:

Net Profit Ratio, also referred to as the Net Profit Margin Ratio, is a profitability ratio
that measures the company's profits to the total amount of money brought into the
business.

Net profit ratio =net profit / net sales

34
4.9 table showing net profit
ratio:
year Net profit Net sales Net profit ratio
2018 341.87 4542.59 7.53
2019 324.90 4919.19 6.6
2020 400.38 5397.13 7.42
2021 602.83 6233.42 9.67
2022 630.68 7529.05 8.38

Interpretation:
The above table shows that the year from 2018-2022 the net profit ratio is increased
from 7.53 to 8.38.

4.9 figure showing net profit ratio:

CHART TITLE
Net profit Net sales Net profit ratio

7529.05
6233.42
5397.13
4919.19
4542.59

630.68
602.83
400.38
341.87

324.9

9.67
7.53

7.42

8.38
6.6

2018 2019 2020 2021 2022

E) RETURN ON SHAREHOLDERS FUND

It is calculated by dividing a company's earnings after taxes (EAT) by the total

shareholders' equity, and multiplying the result by 100%. The higher the percentage,
the more money is being returned to investors. This ratio helps business owners and
financing professionals determine a company's financial health.
Return on shareholders’ funds =net profit after tax and interest
*100/shareholders’ funds

4.10
Year table showing return
Net on shareholders’
profit after tax funds
Shareholder fund Return on
& shareholder

35
 interest fund
2018 341.87 3590.52 9.52
2019 324.90 2892.87 11.23
2020 400.38 3128.90 12.8
2021 602.83 3733.09 16.15
2022 630.68 4251.67 14.83

Interpretation:
The above table shows that the year from 2018-2022 the net profit ratio is increased
from 9.52 to 14.83.

4.10 figure showing return on shareholder funds

CHART TITLE
Net profit after tax & interest Shareholder fund Return on shareholder fund

4251.67
3733.09
3590.52

3128.9
2892.87

630.68
602.83
400.38
341.87

324.9

16.15

14.83
11.23

12.8
9.52

2018 2019 2020 2021 2022

F) DIVIDEND PAYOUT RATIO

The dividend payout ratio is the ratio of the total amount of dividends paid out to
shareholders relative to the net income of the company. It is the percentage of
earnings paid to shareholders via dividends. The amount that is not paid to
shareholders is retained by the company to pay off debt or to reinvest in core
operations. It is sometimes simply referred to as simply the payout ratio.
Dividend payout ratio = equity dividend/ net profit after tax.
4.11
yeartable showing dividend
Equitypayout ratio
dividend Net profit after tax Dividend payout
ratio
2018 55.94 341.87 16.36
2019 69.93 324.90 21.52

36
2020 135.22 400.38 33.77
2021 0 0 0
2022 115.90 630.6 18.38

Interpretation:
The above table shows that the year from 2018-2022 the dividend payout ratio is
increased from
16.36 to 18.38.

4.11 figure showing dividend payout ratio

CHART TITLE
Equity dividend Net profit after tax Dividend payout ratio

630.6
400.38
341.87

324.9

135.22

115.9
69.93
55.94

33.77
21.52

18.38
16.36

2018 2019 2020 2021 2022

4.2 COMPARATIVE STATEMENT

A comparative balance sheet is a side-by-side comparison of the entire balance sheet
report of a current accounting period and a previous accounting period.
A date-to-date comparison within the company helps a business owner or investor
identify financial performance trends over time. Investors can also compare companies
who use the same accounting principles for reasons such as how organizations in the
same business vertical respond to the changes in seasons.
Investors also use comparative balance sheets to do a comparative analysis of financial
ratios. We’ll
expand on this in a later section.
The line items that are included in a comparative balance sheet are the same that are
included in an individual balance sheet. The general categories included are: assets,
liabilities, and equity. The
categories are further broken down into current assets, current liabilities, long-term
assets, and long- term liabilities.

37
Advantages of a Comparative Balance Sheet

The comparative figures in comparative balance sheets can help you identify trends
and areas of weaknesses or strengths. It can also help you understand fluctuations
caused by seasons so that you can make better-informed business decisions.
This comparative report, along with other comparative reports such as the
comparative income statement, helps potential investors determine the financial
health of your business and whether it’s
growing, getting worse, or stagnant.
It can help you see the variance in how much a line item has changed from one period
to another so that you focus on what is causing the increase or decrease in figures in a
particular area of the balance sheet.
Comparative Balance Sheet Analysis Formulas and Calculations

Earlier, we mentioned that you could express figures on comparative balance sheets as
percentages and financial ratios for further analysis.
During an analysis of comparative balance sheets, these tools add alternative angles to
consider.
We’ll discuss three in this guide:

 Percentage change from prior period balance

 Common size ratio
 Liquidity ratios
 Percentage Change

The percentage change simply allows you to see increases or decreases in figures
expressed as a percentage.
The percentage change formula is:
Percentage Change = (Absolute figures of current period – Absolute figures of previous
period of time)
/ Absolute figures of previous period of time) * 100
CHANGE
IN
4.12 table showing comparative statement
PARTICULARS PERCENTAGES
2018- 2019- 2020- 2021-
2019 2020 2021 2022

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS
Equity Share Capital 10% 0% 0% 0%
TOTAL SHARE CAPITAL 10% 0% 0% 0%
38
 Reserves and Surplus 36% 8% 20% 14%
TOTAL RESERVES
AND 36% 8% 20% 14%
SURPLUS
TOTAL
SHAREHOLDERS 35% 8% 19% 14%
FUNDS
NON-CURRENT LIABILITIES
Long Term Borrowings -5% 17% 17% -7%
Deferred Tax Liabilities [Net] 17% 34% 42% 24%
Other Long Term Liabilities 5% 16% 10% 25%
Long Term Provisions 38% 16% 4% 12%
TOTAL NON-
CURRENT -2% 19% 19% 1%
LIABILITIES
CURRENT LIABILITIES
Short Term Borrowings 41% -13% -17% 553%
Trade Payables -37% 11% 21% 22%
Other Current Liabilities 94% 19% 6% -15%
Short Term Provisions 405% 16% -23% -5%
TOTAL CURRENT LIABILITIES 22% 13% 7% 35%
TOTAL CAPITAL
AND 16% 13% 17% 13%
LIABILITIES
ASSETS
NON-CURRENT ASSETS
Tangible Assets 1% 23% 7% 12%
Intangible Assets 70% 24% 114% -2%
Capital Work-In-Progress 534% -8% -4% -85%
Other Assets
FIXED ASSETS 14% 19% 6% 3%
Non-Current Investments 10% -7% 27% 114%
Deferred Tax Assets [Net]
Long Term Loans And
Advances
Other Non-Current Assets 34% -21% -10% 3%
TOTAL NON-
CURRENT 13% 14% 8% 16%
ASSETS
CURRENT ASSETS
- 8468
Current Investments
408% 100% % 132%
Inventories -1% 12% 9% 62%
39
Trade Receivables 8% 10% 41% 26%
Cash And Cash Equivalents -21% 47% 84% -76%
 Short Term Loans And
Advances
OtherCurrentAssets 44% 103% 14% 64%
TOTAL CURRENT ASSETS 22% 12% 41% 7%
TOTAL ASSETS 16% 13% 17% 13%
Interpretation:
The above table shows that the year from 2018-2022 the comparative statement of
balance sheet is increased in both liabilities and asset. 2018-2019 is increased to
16%.2019-2020 is increased to 13%. 2020-2021 is increased 17%. 2021-2022 is
increased 13%.

4.3 COMMON SIZE STATEMENT:

Common size statement is a form of analysis and interpretation of the financial
statement. It is also known as vertical analysis. This method analyses financial
statements by taking into consideration each of the line items as a percentage of the
base amount for that particular accounting period.
Common size statements are not any kind of financial ratios but are a rather easy
way to express financial statements, which makes it easier to analyse those
statements.
Common size statements are always expressed in the form of percentages.
Therefore, such statements are also called 100 per cent statements or component
percentage statements as all the individual items are taken as a percentage of 100.
A common size balance sheet is a statement in which balance sheet items are being
calculated as the ratio of each asset in relation to the total assets. For the liabilities,
each liability is being calculated as a ratio of the total liabilities.
Common size balance sheets can be used for comparing companies that differ in
size. The comparison of such figures for the different periods is not found to be that
useful because the total figures seem to be affected by a number of factors.
Standard values for various assets cannot be established by this method as the trends
of the figures cannot be studied and may not give proper results.
Preparing Common Size Balance Sheet
(1)Take the total of assets or liabilities as 100.
(2)Each individual asset is expressed as a percentage of the total assets, i.e., 100
and different liabilities are also calculated as per total liabilities.

Limitations of Common Size

Statement Following are the
limitations discussed 40

1. It is not helpful in the

decision-making process as
 4.13 Table showing common size balance
sheet
PERCENTAGE
PARTICULARS 2018 2019 2020 2021 2022
AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT

EQUITIES
AND
LIABILITIES
SHAREHOLDER'S
FUNDS
Equity Share Capital 1% 1% 1% 1% 1%
TOTAL
SHARE 1% 1% 1% 1% 1%
CAPITAL
Reserves
and 35% 41% 39% 40% 40%
Surplus
TOTAL
RESERVES AND
SURPLUS 35% 41% 39% 40% 40%
TOTAL
SHAREHOLDERS
FUNDS 36% 42% 40% 41% 41%
NON-CURRENT
LIABILITIES 0% 0% 0% 0% 0%
Long
Term 35% 28% 29% 29% 24%
Borrowings
Deferred Tax
Liabilities [Net]
4% 4% 5% 6% 7%
Other Long
Term
5% 5% 5% 4% 5%
Liabilities
Long
Term 0% 0% 1% 0% 0%
Provisions
TOTAL
NON-
CURRENT 44% 38% 40% 40% 36%
LIABILITIES
CURRENT 41
LIABILITIES 0% 0% 0% 0% 0%
 Short
Term 2% 2% 2% 1% 7%
Borrowings
Trade Payables
11% 6% 6% 6% 6%
Other Current
Liabilities
7% 11% 12% 11% 8%
Short
Term 0% 1% 1% 1% 1%
Provisions
TOTAL CURRENT
LIABILITIES
20% 21% 21% 19% 23%
TOTAL
CAPITAL AND
100% 100% 100% 100% 100%
LIABILITIES
ASSETS
NON-CURRENT
ASSETS
Tangible Assets
60% 52% 57% 52% 52%
Intangible Assets
0% 0% 0% 0% 0%
Capital Work-
In- 1% 8% 6% 5% 1%
Progress
Other Assets 0% 0% 0% 0% 0%
FIXED ASSETS 62% 60% 63% 58% 53%
Non-Current
Investments 9% 9% 7% 8% 15%
Deferred
Tax 0% 0% 0% 0% 0%
Assets [Net]
Long Term
Loans And
0% 0% 0% 0% 0%
Advances
Other Non-
Current 3% 4% 3% 2% 2%
Assets
TOTAL NON-
CURRENT ASSETS 74% 73% 73% 68% 69%
42
CURRENT
ASSETS 0% 0% 0% 0% 0%
 Current
Investments 1% 6% 0% 1% 2%
Inventories 9% 8% 8% 7% 11%
Trade Receivables
3% 3% 3% 3% 4%
Cash And
Cash 9% 6% 8% 13% 3%
Equivalents
Short Term
Loans 0% 0% 0% 0% 0%
And Advances
OtherCurrentAsset
4% 4% 8% 8% 11%
s
TOTAL CURRENT
ASSETS 26% 27% 27% 32% 31%

TOTAL ASSETS
Interpretation: 100% 100% 100% 100% 100%

The above table shows that the year from 2018-2022 the common size statement of
balance sheet is increased in both liabilities and asset.

4.4 TREND ANALYSIS

Trend analysis provides a means to analyze company data over a period of time by
focusing on the change in specific line items within the income statement and balance
sheet.
This tool is used with the assumption that history always repeats itself, and that the
exact time of this repetition can be predicted.

Trend analysis evaluates an organization’s financial information over a period of time.

Periods may be measured in months, quarters, or years, depending on the
circumstances. The goal is to calculate and analyze the amount change and percent
change from one period to the next.
Amount of change = Current year amount – Base year amount
The only way to gauge the true significance of a change is to calculate the percent
change. The percent change is calculated as the current year amount minus the base
year amount, divided by
the base year amount.
Percent change = (Current year amount – Base year amount) ÷ Base year amount
Trend analysis is often used to evaluate each line item on the income statement and
balance sheet. This analysis points to the reason we perform trend analysis—to
identify the increases and
43
decreases in dollar amounts from one year to the next and to take a close look at
unusual trends. A common approach is to establish the oldest year as the base year
and compute future years as a
 percentage of the base year.
Trend percentage = Current year ÷
Base year How is a Trend Analysis Used in Financial Trading?
Trend analysis is the act of using past
and present market trends to predict future movement
patterns. It is considered a part of comparative analysis,
where two details from a market are compared to bring out a future result.
Trend analysis in financial trading aims to predict market
movements, like a bear run (more selling than buying), and uses this trend for
trading till a reversal occurs. Reversals mostly occur at a
resistance (the highest point which a trend can reach before
bouncing back) or a support (lowest point where a trend can reach before bouncing
off).
The movement of the market within a specific period of time
is called a trend. Trends can differ depending on the type of market at that period.
Trends are of three different types; short trends, long-term
trends, and scalp or swing trends (Trends used in analyzing future patterns for more
than a month but less than three months).
 Trend lines aim to predict (although most traders would say the word predict is
over used) market movement like bull market runs (a period filled with high-
buying activities), and made use of that pattern, till a reversal (resistance
levels) to a bear run (period of high-selling activities).
 The motto for this tool is that history repeats itself
 This tool is mainly focused on short, scalp, and long-term trading.
Markets are separated into bullish and bearish market, two terms for defining high
buying and selling periods respectively.
Trend analysis works better when a given trend has occurred for a long amount of
time. The longer a trend occurs, the stronger it becomes, and the more chance it has
of staying that way.
Experienced statisticians are able to use this tool to determine if a market will
continue in its current
pattern, or reverse to the opposite pattern. It is also helpful in comparing stocks in
two markets like the London Stock Exchange (LSE), and the New York Stocks Exchange
(NYSE). 2018
particular 2019 2020 2021 2022 201 2019 2020 2021 2022
It is important to note that no matter how good a system
8 can be, it is highly
incapable69.93
Equity of providing
77.27perfect future
77.27 predictions
77.27 77.27 at all
100times.
110.4Thus, investors
110.4 110.4should
110.4
understand
share that this system is also
accompanied with risks.
capit
al
4.14 Table
Reserve showing
2077.4 trend analysis
2815.5 3051.6 3655.8 4174.40 100 135.5 146.8 175.9 200.9

44
& surplus 2 4 3 2
Long 2069.7 1956.4 2283.9 2671.9 2475.51 100 94.52 110.3 129.0 119.6
term 1 8 1 7 4
borrowing
Deferred 267.19 312.50 418.11 593.94 738.48 100 116.9 156.4 222.2 276.3
tax 8 9
liabiliti
es
Other 299.11 314.50 364.20 402.41 501.71 100 105.1 121.7 134.5 167.7
long 1 6 3 3
liabiliti
es
Long 25.08 34.68 40.38 41.92 47.06 100 138.2 161.0 167.1 187.6
term 7 0 4 3
provision
Short 113.52 159.82 138.85 115.09 751.88 100 140.7 122.3 101.3 662.3
term 8 1 8
borrowin
g
Trade 643.06 407.36 452.64 549.95 669.15 100 63.34 70.38 85.52 104.0
payable 5
Other 399.96 774.03 917.83 975.83 826.66 100 193.5 229.3 243.9 206.6
current 2 7 8 8
liabiliti
es
Short 18.84 95.17 110.70 84.72 80.14 100 505.1 587.6 449.6 425.4
term
provisio
n
Total 5983.8 6947.3 7855.1 9168.9 10342.7 100 116.1 131.3 153.2 172.8
liabilities 2
Assets
Tangible 3590.5 3624.9 4455.0 4781.0 5340.31 100 100.9 124.0 133.1 148.7
asset 2 7 5 2 5 7 5 3
Intangible 6.17 10.5 13.04 27.39 27.39 100 170.1 211.3 443.9 443.9
assets 7 4 2 2
Capital 87.81 556.44 509.20 488.53 71.03 100 63.36 579.8 556.3 80.89
work 8 4
in
progress
Noncurre 556.94 610.39 566.21 718.75 1540.07 100 109.5 101.6 129.0 276.5
nt 9 6 5 2
investme
n 45
t
Other 186.23 249.75 197.09 176.66 182.08 100 134.1 105.8 94.86 97.77
noncurre 0 3
t
Current 77.58 394.31 1.03 88.25 204.70 100 508.2 01.32 113.7 259.9
investme 6 5 8
nt
Investme 531.61 557.87 627.71 686.66 1113.57 100 104.9 117.9 129.1 209.4
nt 3 7 6 7
Trade 187.97 202.22 223.45 316.09 397.79 100 107.5 118.8 168.1 211.6
receivabl 8 7 5 2
e
Cash 543.52 429.74 631.13 1161.7 282.60 100 79.06 116.1 213.7 51.99
& 8 1 5
cash
equivale
nt
Other 215.45 311.07 723.3 1182.71 100 144.3 293.6 335.7 548.9
curren 632.72 8 6 1 4
t
assets
Interpretation:
Total 5983.8 6947.2 7855.0 9168.9 10342.2 100 116.1 131.2 153.2 172.8
assets 1 6 8 3 6 7 2 3
The above table shows that the year from 2018 to 2022 trend analysis. From the
percentage the asset and liabilities increased 72.83.

46
 Chapter 5
FINDINGS, SUGGESTIONS AND CONCLUSION

1. Findings of the Study

As a conventional rule, a current ratio of 2:1 is considered satisfactory. Current ratio of
super auto forge private limited company shows that they are maintaining current ratio
as 2 and more standard, which indicates the ability of the firm to meet its current
obligations is more. But it is more than 2:1, it may also indicates that they are not
using current assets efficiently, or indicates idleness of working capital.
• Quick ratios of the company is sufficient. It indicates that the firm position in
meeting its current
obligation is satisfactory. It shows that the firm had sufficient liquid assets.
• Net profit ratio has increased from beginning itself. It has increased from 7.53 in
2018, which drops
to 6.6 in 2019 and increased by 7.42 in 2020 and increased by 9.67 in 2021 and
drops to 8.38 in 2022 .This indicates that there is an improvement in the operational
efficient of the business and it leads to the increase in the profitability position of the
firm.
•The gross profit in the year 2018 is 87, and in 2019 and 2020 is 86 and in 2021 is 87
and in 2022 is 88 this shows the company is maintained a good profit margin.
• Working capital turnover ratio in the year 2017-2018 shows a highly increase trend
which indicator
of efficient use of the company´s short-term assets and liabilities to support sales.
But in the year 2020 there is a drastic decrease. So, a low working capital turnover
ratio implies that the company
is not generating sales sufficient enough from the working capital available.
• Comparative balance sheet proves that the financial performance for each
succeeding year is very
much satisfactory as compared with previous year during the period of 2018-2022.
• In common size income statement, the profit of the year is in increasing trend year
by year. It is
increased by 22.22% which shows the company is earning its profit yearly.
• From trend analysis, the balance sheet total shows an increasing trend year by year.
• The working capital turnover ratio can be improved by providing incentives to
customers who pay
on time will help in increasing the working capital.
• The gross profit can be maintained or further improved by increasing the gross profit
and factors
decreasing the gross profit ratio should thoroughly checked. Thus, by reducing their
expenses which in turn will increase the profitability ratio.
• The liquidity position of the company can be utilized in a better or other effective
purpose.
•The trend analysis of current assets, 47 non-current assets, and non-current
liabilities shows increasing trend. The company has to maintain it for the upcoming
years.
3) The Company has to increase its current asset and improves the sort-term financial
position and cost of goods sold has be reduced.

5.3 CONCLUSION
The study of financial performance analysis of Company has revealed the great deal of
their various financial aspects for five years. The comparative analysis unlocks
the overall performance methodology. It aids the company, the shareholders as
well as the creditors in taking valuable decisions and scope with deviations. As such,
there are more avenues and scope for the companies to improve and thrive
successfully in the nature.

48
REFRENCES

AL-Dalayeen, A. K. (2016). Financial Performance of Cement Companies- A Critical

Appraisal. Research Journal of Finance and Accounting.
Bansal, D. S. (2013). Determinants of Working Capital in Cement Industry- A case study
of ACC Ltd. Baran, D., Pastýr, A., & Baranová, D. (2016). Financial Analysis of a
Selected Company. Research Papers Faculty of Materials Science and Technology
Slovak University of Technology, 24 (37), 73- 92.
Bhayani, S. J. (2010). Determinant of Profitability in Indian Cement Industry: An
Economic Analysis. Damor, D. K. (2012). Profitability Analysis of Cement Industries.
SUMEDHA Journal of Management. Delen, D., Kuzey, C., & Uyar, A. (2013).
Measuring firm performance using financial ratios: A decision tree approach. Expert
systems with applications, 40 (10), 3970-3983.
EL-Maude, J. G.-R. (2016). Capital Structure and Firm Performance in the Nigerian
Cement Industry. Farah Nazi, F. I. (2016). Financial Performance of firms: Evidence from
Pakistan Cement Industry. Journal of teaching and education.
Hasanaj, P., & Kuqi, B. (2019). Analysis of Financial Statements: The Importance of
Financial Indicators in Enterprise. Humanities and Social Science Research, 2 (2).
Houghton, K. A., & Woodcliff, D. R. (1987). Financial Ratios: the prediction of
corporate 'success' and Failure. Journal of Business Finance & Accounting, 14 (4), 537-
554.
Kumaraswamy, S. (2016). Impact of Working Capital on Financial Performance of Gulf
Cooperation Council Firms. International Journal of Economics and Financial Issues,
M. Devi, D. (2017). A Study on Financial Performance of Cement Companies in India
with Reference to Ultratech Cement Limited and India Cement Limited - A
Comparative Analysis. Journal of Multidisciplinary Research.
Mobeen Ur Rehman, N. (2013). Asian Economic and Financial Review, 2013,
determination of the
impact of working capital management on profitability: an empirical study from the
cement sector in Pakistan.
Mrs.J.Dhivya, M. M. (2017). A study on financial performance of cement industry
with special reference to acc limited.
Panigrahi, C. A. (2017). Working Capital Management Efficiency of Indian Cement
Industry. NMIMS Journal of Economics and Public Policy Volume II, January 2017.
Sabamaithily, N. S. (2016). Working Capital Management on Profitability: Cement
Industry in India. SCMS Journal of Indian Management. Shah, m. (2017). A financial
performance analysis of selected
Indian cement company. International journal of management and social science
research review. Sharma, M. K. (2015). Efficiency Analysis and Flexibility: A Case
Study of Cement Firms in India. Global Journal of Flexible Systems Management.
Tan veer Bagh, M. I. (2016). The Impact of Working Capital Management on Firms
Financial
Performance: Evidence from Pakistan. International
49 Journal of Economics and Financial
Issues, ZUBAIR ARSHAD, M. Y. (2013). Impact of working capital management on
profitability a case of the Pakistan cement industry. Interdisciplinary journal of
contemporary research in business.
 APPENDIX

PROFIT AND LOSS ACCOUNT

PROFIT & LOSS ACCOUNT OF J. MAR 22 MAR 21 MAR 20 MAR 19 MAR 18

K. CEMENT (in Rest. Cr.)

12 MThs 12 MThs 12 MThs 12 MThs 12 MThs

INCOME

REVENUE FROM OPERATIONS 7,529.05 6,233.42 5,397.13 4,919.19 4,709.55

[GROSS]

Less: Excise/Service Tax/ 0.00 0.00 0.00 0.00 166.96

Other Levies

REVENUE FROM OPERATIONS 7,529.05 6,233.42 5,397.13 4,919.19 4,542.59

[NET]

TOTAL OPERATING REVENUES 7,678.58 6,328.28 5,463.77 4,981.30 4,591.21

Other Income 142.80 113.36 85.88 79.91 127.65

TOTAL REVENUE 7,821.38 6,441.64 5,549.65 5,061.21 4,718.86

EXPENSES

Cost Of Materials Consumed 1,155.39 965.17 871.99 821.22 730.38

Purchase Of Stock-In Trade 134.63 66.40 59.55 21.54 0.85

Operating And Direct Expenses 0.00 0.00 0.00 0.00 0.00

50
Changes In Inventories Of - 19.4 - - 42.0
FG,WIP And Stock-In Trade 19.04 7 66.53 4.72 1

Employee Benefit Expenses 504.17 412.14 390.90 353.50 325.46

Finance Costs 249.32 223.16 222.87 222.09 245.35

Depreciation And 282.02 244.68 214.39 194.37 186.27

Amortization Expenses

Other Expenses 4,421.36 3,351.20 3,026.33 2,979.65 2,731.86

TOTAL EXPENSES 6,727.84 5,282.22 4,719.49 4,587.63 4,262.17

PROFIT/LOSS 1,093.54 1,159.41 830.16 473.57 456.69

BEFORE EXCEPTIONAL,
EXTRAORDINARY ITEMS
AND TAX

Exceptional Items -130.00 -166.87 -178.15 0.00 -16.96

PROFIT/LOSS BEFORE TAX 963.54 992.55 652.01 473.57 439.73

TAX EXPENSES-
CONTINUED OPERATIONS

Current Tax 257.00 307.56 171.24 103.70 94.14

Less: MAT Credit Entitlement 0.00 0.00 0.00 0.00 0.00

Deferred Tax 90.07 60.13 92.30 44.98 3.72

Tax For Earlier Years -14.21 22.03 -11.90 0.00 0.00

51
TOTAL TAX EXPENSES 332.86 389.72 251.64 148.68 97.85

PROFIT/LOSS AFTER TAX AND 630.68 602.83 400.38 324.90 341.87

BEFORE EXTRAORDINARY
ITEMS

PROFIT/LOSS 630.68 602.83 400.38 324.90 341.87

FROM CONTINUING
OPERATIONS

PROFIT/LOSS FOR THE PERIOD 630.68 602.83 400.38 324.90 341.87

OTHER
ADDITIONAL INFORMATION

EARNINGS PER SHARE

Basic EPS (Rs.) 81.62 78.02 51.82 45.28 48.89

Diluted EPS (Rs.) 81.62 78.02 51.82 45.28 48.89

VALUE OF IMPORTED AND

INDIGENIOUS RAW MATERIALS
STORES, SPARES AND LOOSE
TOOLS

Imported Raw Materials 0.00 0.00 0.00 0.00 0.00

Indigenous Raw Materials 0.00 0.00 0.00 0.00 0.00

STORES, SPARES AND LOOSE

TOOLS

Imported Stores And Spares 0.00 0.00 0.00 0.00 0.00

52
 Indigenous Stores And 0.0 0.0 0.0 0.0 0.0
Spares 0 0 0 0 0
DIVIDEND AND
DIVIDEND PERCENTAGE

Equity Share Dividend 115.90 0.00 135.22 69.93 55.94

Tax On Dividend 0.00 0.00 27.79 14.37 11.39

Equity Dividend Rate (%) 150.00 150.00 75.00 100.00 100.00

Balance sheet

BALANCE SHEET OF J. MAR 22 MAR 21 MAR 20 MAR 19 MAR 18

K. CEMENT (in Rs. Cr.)

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 77.27 77.27 77.27 77.27 69.93

TOTAL SHARE CAPITAL 77.27 77.27 77.27 77.27 69.93

Reserves and Surplus 4,174.40 3,655.82 3,051.63 2,815.54 2,077.42

TOTAL RESERVES AND 4,174.40 3,655.82 3,051.63 2,815.54 2,077.42

SURPLUS

TOTAL SHAREHOLDERS 4,251.67 3,733.09 3,128.90 2,892.81 2,147.35

53
FUNDS

NON-CURRENT LIABILITIES

Long Term Borrowings 2,475.51 2,671.97 2,283.91 1,956.48 2,069.71

Deferred Tax Liabilities [Net] 738.48 593.94 418.11 312.50 267.19

Other Long Term Liabilities 501.71 402.41 364.20 314.42 299.11

Long Term Provisions 47.06 41.92 40.38 34.68 25.08

TOTAL NON- 3,762.76 3,710.25 3,106.60 2,618.08 2,661.08

CURRENT LIABILITIES

CURRENT LIABILITIES

Short Term Borrowings 751.88 115.09 138.85 159.82 113.52

Trade Payables 669.15 549.95 452.64 407.36 643.06

Other Current Liabilities 826.66 975.83 917.40 774.03 399.96

Short Term Provisions 80.14 84.72 110.70 95.17 18.84

TOTAL CURRENT LIABILITIES 2,327.83 1,725.60 1,619.58 1,436.38 1,175.38

TOTAL CAPITAL 10,342.2 9,168.93 7,855.08 6,947.26 5,983.81

AND LIABILITIES 6

ASSETS

NON-CURRENT ASSETS

54
Tangible 5,340.3 4,781.0 4,455.0 3,624.9 3,590.5
Assets 1 2 5 7 2
Intangible Assets 27.39 27.90 13.04 10.50 6.17

Capital Work-In-Progress 71.03 488.53 509.20 556.44 87.81

Other Assets 0.00 0.00 0.00 0.00 0.00

FIXED ASSETS 5,438.73 5,297.44 4,977.29 4,191.91 3,684.50

Non-Current Investments 1,540.07 718.75 565.21 610.39 556.94

Deferred Tax Assets [Net] 0.00 0.00 0.00 0.00 0.00

Long Term Loans And 0.00 0.00 0.00 0.00 0.00

Advances

Other Non-Current Assets 182.08 176.66 197.09 249.75 186.23

TOTAL NON-CURRENT ASSETS 7,160.89 6,192.85 5,739.59 5,052.05 4,427.68

CURRENT ASSETS

Current Investments 204.70 88.25 1.03 394.31 77.58

Inventories 1,113.57 686.66 627.17 557.87 531.61

Trade Receivables 397.79 316.09 223.45 202.22 187.97

Cash And Cash Equivalents 282.60 1,161.78 631.13 429.74 543.52

Short Term Loans And 0.00 0.00 0.00 0.00 0.00

Advances

55
OtherCurrentAsse 1,182.7 723.30 632.71 311.07
ts 1 215.45
TOTAL CURRENT ASSETS 3,181.36 2,976.07 2,115.49 1,895.21 1,556.13

TOTAL ASSETS 10,342.26 9,168.93 7,855.08 6,947.26 5,983.81

OTHER
ADDITIONAL INFORMATION

CONTINGENT L
IABILITIES, COMMITMENTS

Contingent Liabilities 621.35 822.50 1,429.38 1,533.04 1,158.87

CIF VALUE OF IMPORTS

Raw Materials 0.00 0.00 0.00 0.00 0.00

Stores, Spares And Loose Tools 0.00 0.00 0.00 0.00 0.00

Trade/Other Goods 0.00 0.00 0.00 0.00 0.00

Capital Goods 0.00 0.00 0.00 0.00 0.00

EXPENDITURE IN
FOREIGN EXCHANGE

Expenditure In Foreign 843.39 647.59 315.61 267.59 0.00

Currency

REMITTANCES IN
FOREIGN CURRENCIES FOR
DIVIDENDS

Dividend Remittance In -- -- -- -- --
Foreign

56
Currenc
y
EARNINGS IN
FOREIGN EXCHANGE

FOB Value Of Goods -- -- -- -- --

Other Earnings 4.29 6.95 10.88 11.06 --

BONUS DETAILS

Bonus Equity Share Capital -- -- -- -- --

NON-CURRENT INVESTMENTS

Non-Current Investments -- 39.78 40.10 43.87 41.28

Quoted Market Value

Non-Current 1,540.07 678.97 525.11 566.52 515.67

Investments Unquoted Book
Value

CURRENT INVESTMENTS

Current Investments 204.70 88.25 1.03 394.31 --

Quoted Market Value

Current Investments -- -- -- -- --
Unquoted Book Value

57
Comparative statement
COMPARATVE BALANCE SHEET FOR THE YEAR ENDED 31ST MARCH 2019 AND MARCH
2018
CHANGE
2019 2018
IN CHANGE
PARTICULARS AMOUNT AMOUNT
ABSOLUTE IN
(in cr) (in cr)
VALUE PERCENTAGES
EQUITIES AND
LIABILITIES
SHAREHOLDER'S
FUNDS

Equity Share Capital 77.27 69.93 7.34 10%

TOTAL SHARE
CAPITAL 77.27 69.93 7.34 10%

Reserves and Surplus

2,815.54 2,077.42 738.12 36%
TOTAL
RESERVES 2,815.54 2,077.42 738.12 36%
AND SURPLUS
TOTAL
SHAREHOLDERS FUNDS 2,892.81 2,147.35 745.46 35%
NON-CURRENT
LIABILITIES -

Long Term Borrowings

1,956.48 2,069.71 -113.23 -5%
Deferred Tax
Liabilities 312.50 267.19 45.31 17%
[Net]
Other Long Term
Liabilities 314.42 299.11 15.31 5%

Long Term Provisions

34.68 25.08 9.60 38%
TOTAL NON-CURRENT
LIABILITIES 2,618.08 2,661.08 -43.00 -2%
CURRENT LIABILITIES -
Short Term Borrowings
159.82 113.52 46.30 41%

Trade Payables
407.36 643.06 -235.70 -37%

Other Current
774.03 399.96 374.07 94%
Liabilities
58
 Short Term Provisions
95.17 18.84 76.33 405%
TOTAL
CURRENT 1,436.38 1,175.38 261.00 22%
LIABILITIES
TOTAL CAPITAL AND
LIABILITIES 6,947.26 5,983.81 963.45 16%
ASSETS -
NON-CURRENT
ASSETS -

Tangible Assets
3,624.97 3,590.52 34.45 1%

Intangible Assets
10.50 6.17 4.33 70%
Capital
Work-In- 556.44 87.81 468.63 534%
Progress
Other Assets
- - -

FIXED ASSETS
4,191.91 3,684.50 507.41 14%
Non-Current
Investments 610.39 556.94 53.45 10%
Deferred Tax
Assets - - -
[Net]
Long Term Loans
And - - -
Advances
Other Non-
Current 249.75 186.23 63.52 34%
Assets
TOTAL NON-CURRENT
ASSETS 5,025.05 4,427.68 597.37 13%
CURRENT ASSETS -
Current Investments
394.31 77.58 316.73 408%

Inventories
557.87 561.61 -3.74 -1%

Trade Receivables
202.22 187.97 14.25 8%
Cash And
Cash 429.74 543.52 -113.78 -21%
Equivalents 59
Short Term Loans
And - - -
Advances
 OtherCurrentAssets
311.07 215.45 95.62 44%
TOTAL
CURRENT 1,895.21 1,556.13 339.08 22%
ASSETS
TOTAL ASSETS
6,947.26 5,983.81 963.45 16%

60
Comparative statement of 2019-2020
CHANGE
2020 2019
IN CHANGE
PARTICULARS AMOUNT AMOUNT
ABSOLUTE IN
(in cr) (in cr)
VALUE PERCENTAGES
EQUITIES
AND
LIABILITIES
SHAREHOLDER'S
FUNDS

Equity Share Capital 77.27 77.27 - 0%

TOTAL
SHARE 77.27 77.27 - 0%
CAPITAL
Reserves and Surplus
3,051.63 2,815.54 236.09 8%
TOTAL
RESERVES 3,051.63 2,815.54 236.09 8%
AND SURPLUS
TOTAL
SHAREHOLDERS
FUNDS 3,128.90 2,892.81 236.09 8%
NON-CURRENT
LIABILITIES -
Long
Term 2,283.91 1,956.48 327.43 17%
Borrowings
Deferred
Tax 418.11 312.50 105.61 34%
Liabilities [Net]
Other Long
Term 364.20 314.42 49.78 16%
Liabilities
Long Term Provisions
40.38 34.68 5.70 16%
TOTAL NON-
CURRENT LIABILITIES 3,106.60 2,618.08 488.52 19%
CURRENT
LIABILITIES -
Short
Term 138.85 159.82 -20.97 -13%
Borrowings
61
Trade Payables
452.64 407.36 45.28 11%
 Other
Current 917.40 774.03 143.37 19%
Liabilities
Short Term
110.70 95.17 15.53 16%
Provisions
TOTAL
CURRENT 1,619.58 1,436.38 183.20 13%
LIABILITIES
TOTAL CAPITAL AND
LIABILITIES 7,855.08 6,947.26 907.82 13%
ASSETS -
NON-CURRENT
ASSETS -

Tangible Assets
4,455.05 3,624.97 830.08 23%

Intangible Assets
13.04 10.50 2.54 24%
Capital Work-
In- 509.20 556.44 -47.24 -8%
Progress
Other Assets
- - -

FIXED ASSETS
4,977.29 4,191.91 785.38 19%
Non-Current
Investments 565.21 610.39 -45.18 -7%
Deferred Tax
Assets - - -
[Net]
Long Term Loans
And - - -
Advances
Other Non-
Current 197.09 249.75 -52.66 -21%
Assets
TOTAL
NON- 5,739.59 5,025.05 714.54 14%
CURRENT ASSETS
CURRENT ASSETS -
Current Investments
1.03 394.31 -393.28 -100%

Inventories
627.17 557.87 69.30 12%
62
Trade Receivables
223.45 202.22 21.23 10%
Cash And
Cash 631.13 429.74 201.39 47%
 Short Term Loans
And - - -
Advances
Other Current
632.71 311.07 321.64 103%
Assets
TOTAL
CURRENT 2,115.49 1,895.21 220.28 12%
ASSETS
TOTAL ASSETS
7,855.08 6,947.26 907.82 13%

63
Comparative statement of 2020-
2021 CHANGE
2021 2020
IN CHANGE
PARTICULARS AMOUNT AMOUNT
ABSOLUTE IN
(in cr) (in cr)
VALUE PERCENTAGES
EQUITIES
AND
LIABILITIES
SHAREHOLDER'S
FUNDS

Equity Share Capital 77.27 77.27 - 0%

TOTAL
SHARE 77.27 77.27 - 0%
CAPITAL
Reserves and Surplus
3,655.82 3,051.63 604.19 20%
TOTAL
RESERVES 3,655.82 3,051.63 604.19 20%
AND SURPLUS
TOTAL
SHAREHOLDERS
FUNDS 3,733.09 3,128.90 604.19 19%
NON-CURRENT
LIABILITIES -
Long
Term 2,671.97 2,283.91 388.06 17%
Borrowings
Deferred
Tax 593.94 418.11 175.83 42%
Liabilities [Net]
Other Long
Term 402.41 364.20 38.21 10%
Liabilities
Long Term Provisions
41.92 40.38 1.54 4%
TOTAL NON-
CURRENT LIABILITIES 3,710.25 3,106.60 603.65 19%
CURRENT
LIABILITIES -
Short
Term 115.09 138.85 -23.76 -17%
Borrowings
Trade Payables 64
549.95 452.64 97.31 21%
Other
Current 975.83 917.40 58.43 6%
 Short Term
84.72 110.70 -25.98 -23%
Provisions
TOTAL
CURRENT 1,725.60 1,619.58 106.02 7%
LIABILITIES
TOTAL CAPITAL AND
LIABILITIES 9,168.93 7,855.08 1,313.85 17%
ASSETS -
NON-CURRENT
ASSETS -

Tangible Assets
4,781.02 4,455.05 325.97 7%

Intangible Assets
27.90 13.04 14.86 114%
Capital Work-
In- 488.53 509.20 -20.67 -4%
Progress
Other Assets
- - -

FIXED ASSETS
5,297.44 4,977.29 320.15 6%
Non-Current
Investments 718.75 565.21 153.54 27%
Deferred Tax
Assets - - -
[Net]
Long Term Loans
And - - -
Advances
Other Non-
Current 176.66 197.09 -20.43 -10%
Assets
TOTAL
NON- 6,192.85 5,739.59 453.26 8%
CURRENT ASSETS
CURRENT ASSETS -
Current Investments
88.25 1.03 87.22 8468%

Inventories
686.66 627.17 59.49 9%

Trade Receivables
316.09 223.45 92.64 41%
Cash And
Cash 1,161.78 631.13 65 530.65 84%
Equivalents
Short Term Loans
And - - -
 Other Current
723.30 632.71 90.59 14%
Assets
TOTAL
CURRENT 2,976.07 2,115.49 860.58 41%
ASSETS
TOTAL ASSETS
9,168.93 7,855.08 1,313.85 17%

66
Comparative statement of 2021-
2022 CHANGE
2022 2021
IN CHANGE
PARTICULARS AMOUNT AMOUNT
ABSOLUTE IN
(in cr) (in cr)
VALUE PERCENTAGES
EQUITIES
AND
LIABILITIES
SHAREHOLDER'S
FUNDS

Equity Share Capital 77.27 77.27 - 0%

TOTAL
SHARE 77.27 77.27 - 0%
CAPITAL
Reserves and Surplus
4,174.40 3,655.82 518.58 14%
TOTAL
RESERVES 4,174.40 3,655.82 518.58 14%
AND SURPLUS
TOTAL
SHAREHOLDERS
FUNDS 4,251.67 3,733.09 518.58 14%
NON-CURRENT
LIABILITIES -
Long
Term 2,475.51 2,671.97 -196.46 -7%
Borrowings
Deferred
Tax 738.48 593.94 144.54 24%
Liabilities [Net]
Other Long
Term 501.71 402.41 99.30 25%
Liabilities
Long Term Provisions
47.06 41.92 5.14 12%
TOTAL NON-
CURRENT LIABILITIES 3,762.76 3,710.25 52.51 1%
CURRENT
LIABILITIES -
Short
Term 751.88 115.09 636.79 553%
Borrowings
Trade Payables 67
669.15 549.95 119.20 22%
Other
Current 826.66 975.83 -149.17 -15%
 Short Term
80.14 84.72 -4.58 -5%
Provisions
TOTAL
CURRENT 2,327.83 1,725.60 602.23 35%
LIABILITIES
TOTAL CAPITAL AND
LIABILITIES 10,342.2 9,168.93 1,173.33 13%
6
ASSETS -
NON-CURRENT
ASSETS -

Tangible Assets
5,340.31 4,781.02 559.29 12%

Intangible Assets
27.39 27.90 -0.51 -2%
Capital Work-
In- 71.03 488.53 -417.50 -85%
Progress
Other Assets
- - -

FIXED ASSETS
5,438.73 5,297.44 141.29 3%
Non-Current
Investments 1,540.07 718.75 821.32 114%
Deferred Tax
Assets - - -
[Net]
Long Term Loans
And - - -
Advances
Other Non-
Current 182.08 176.66 5.42 3%
Assets
TOTAL
NON- 7,160.89 6,192.85 968.04 16%
CURRENT ASSETS
CURRENT ASSETS -
Current Investments
204.70 88.25 116.45 132%

Inventories
1,113.57 686.66 426.91 62%

Trade Receivables
397.79 316.09 81.70 26%
Cash And 68
Cash 282.60 1,161.78 -879.18 -76%
Equivalents
Short Term Loans
 OtherCurrentAssets
1,182.71 723.30 459.41 64%
TOTAL
CURRENT 3,181.36 2,976.07 205.29 7%
ASSETS
TOTAL ASSETS
10,342.2 9,168.93 1,173.33 13%
6

69
Common size statement of 2018-
2022 COMMON SIZE ANALYSIS
2018 2019 2020 2021 2022 (IN %)
PARTICULARS AMOU AMOU AMOU AMOU AMOU
NT NT NT NT NT 201 201 202 202 202
8 9 0 1 2

EQUITIES AND
LIABILITIES
SHAREHOLDE
R'S FUNDS
Equity
Share 69.93 77.27 77.27 77.27 77.27 1% 1% 1% 1% 1%
Capital
TOTAL
SHARE
CAPITAL 69.93 77.27 77.27 77.27 77.27 1% 1% 1% 1% 1%

Reserves
2,077. 2,815. 3,051. 3,655. 4,174.4 35 41 39 40 40
and Surplus
42 54 63 82 0 % % % % %
TOTAL
RESERVES 2,077. 2,815. 3,051. 3,655. 4,174.4 35 41 39 40 40
AND SURPLUS 42 54 63 82 0 % % % % %
TOTAL
SHAREHOLDE 2,147. 2,892. 3,128. 3,733. 4,251.6 36 42 40 41 41
RS FUNDS 35 81 90 09 7 % % % % %
NON-
CURRENT
LIABILITIES 0% 0% 0% 0% 0%

Long
2,069. 1,956. 2,283. 2,671. 2,475.5 35 28 29 29 24
Term
71 48 91 97 1 % % % % %
Borrowings
Deferred
Tax Liabilities
267.19 312.50 418.11 593.94 738.48 4% 4% 5% 6% 7%
[Net]
Other
Long Term
299.11 314.42 364.20 402.41 501.71 5% 5% 5% 4% 5%
Liabilities
Long
Term 25.08 34.68 40.38 41.92
70 47.06 0% 0% 1% 0% 0%
Provisions
 TOTAL NON-
CURRENT 2,661. 2,618. 3,106. 3,710. 3,762.7 44 38 40 40 36
LIABILITIES 08 08 60 25 6 % % % % %
CURRENT
LIABILITIES 0% 0% 0% 0% 0%
Short
Term 113.52 159.82 138.85 115.09 751.88 2% 2% 2% 1% 7%
Borrowings
Trade 11
Payables 643.06 407.36 452.64 549.95 669.15 % 6% 6% 6% 6%
Other
11 12 11
Current
399.96 774.03 917.40 975.83 826.66 7% % % % 8%
Liabilities
Short
Term 18.84 95.17 110.70 84.72 80.14 0% 1% 1% 1% 1%
Provisions
TOTAL
CURRENT 1,175. 1,436. 1,619. 1,725. 2,327.8 20 21 21 19 23
LIABILITIES 38 38 58 60 3 % % % % %
TOTAL
CAPITAL 5,983. 6,947. 7,855. 9,168. 10,342. 100 100 100 100 100
AND 81 26 08 93 26 % % % % %
LIABILITIES
ASSETS
NON-
CURRENT
ASSETS
Tangibl
3,590. 3,624. 4,455. 4,781. 5,340.3 60 52 57 52 52
e Assets
52 97 05 02 1 % % % % %
Intangible
Assets 6.17 10.50 13.04 27.90 27.39 0% 0% 0% 0% 0%
Capital
Work- 87.81 556.44 509.20 488.53 71.03 1% 8% 6% 5% 1%
In-Progress
Other Assets
- - - - - 0% 0% 0% 0% 0%

FIXED
3,684. 4,191. 4,977. 5,297. 5,438.7 62 60 63 58 53
ASSETS
50 91 29 44 3 % % % % %

Non-
1,540.0 15
Current
556.94 610.39 565.21 71
718.75 7 9% 9% 7% 8% %
Investments
 Deferred
Tax - - - - - 0% 0% 0% 0% 0%
Assets [Net]
Long
Term
Loans - - - - - 0% 0% 0% 0% 0%
And Advances
Other
Non- 186.23 249.75 197.09 176.66 182.08 3% 4% 3% 2% 2%
Current Assets
TOTAL NON-
CURRENT 4,427. 5,052. 5,739. 6,192. 7,160.8 74 73 73 68 69
ASSETS 68 05 59 85 9 % % % % %
CURRENT
ASSETS 0% 0% 0% 0% 0%
Current
Investments 77.58 394.31 1.03 88.25 204.70 1% 6% 0% 1% 2%

Inventories 1,113.5 11
531.61 557.87 627.17 686.66 7 9% 8% 8% 7% %
Trade
Receivables 187.97 202.22 223.45 316.09 397.79 3% 3% 3% 3% 4%
Cash
And 1,161. 13
Cash 543.52 429.74 631.13 78 282.60 9% 6% 8% % 3%
Equivalent
s
Short
Term
Loans - - - - - 0% 0% 0% 0% 0%
And Advances
OtherCurrent
1,182.7 11
A ssets
215.45 311.07 632.71 723.30 1 4% 4% 8% 8% %
TOTAL
CURRENT 1,556. 1,895. 2,115. 2,976. 3,181.3 26 27 27 32 31
ASSETS 13 21 49 07 6 % % % % %

TOTAL
5,983. 6,947. 7,855. 9,168. 10,342. 100 100 100 100 100
ASSETS
81 26 08 93 26 % % % % %

72