CONTENTS1) CHAPTERINTRODUCTION TO WORKING CAPITAL MANAGEMENT

2) CHAPTERANALYSIS OF WORKING CAPITAL AT KESORAM INDUSTRY LTD.

3).CHAPTERANALYSIS OF ACCOUNTS CASH MANAGEMENT AT KESORAM INDUSTRY

4)CHAPTERANALYSIS OF ACCOUNTS RECEIVABLES AT KESORAM INDUSTRY

5)CHAPTER.CONCLUSIONS &SUGGESTIONS

BIBLIOGRAPHY

CHAPTER-I INTRODCTION

ORIGIN OF WORKING CAPITALThe total capital employed in a business organization can be categorized as fixed capital and working capital. The fixed capital that part of the funds, which is invested in current assets. The investment in fixed assets is represented by land and buildings (for factory, office go down and stores), equipment such as machinery, furniture and fixtures, intangible assets in the form of patents and goodwill etc. To employ these fixed assets gainfully current assets are required. Current assets consists of raw materials, working progress, finished goods, stores and spares accounts,receivables, and cash in hand and at bank and marketable securities.

Balanced working capital position:The firm should maintain a sound working capital position. It should have adequate working capital to run its business operations. Both excessive as well as inadequate working capital positions are dangerous from the firms point of view. Excessive working capital means idle funds, which earn no profits for the firm. Paucity of working capital not only impairs the firms profitability but also results in production interruptions and inefficiencies. WORKING CAPITAL MANGEMENT Working capital management forms the inching of every business. As Gilberth Harold puts the problems. Unfortunately, there is so much disagreement among financiers, accountants, business men and economists as to the exact meaning of the term Working Capital.

Definition of Working Capital: Working Capital or Circulating Capital indicates circular flow of funds in the routine activities of business. Working Capital can be defined as Any acquisition of funds which increases the current assets, increases working capital also, for they are one and the same -Bonneville. The current assets are cash, marketable securities, accounts receivable and inventory. The current liabilities are those liabilities which are intended at their inception to be paid in the ordinary course of business such as bills payable, bank overdraft and outstanding expenses. The goal of working capital management to manage the firms current assets and current liabilities in such a way that a satisfactory level of working capital is maintained. This is because if the firm cannot maintain a satisfactory level of working capital, it is likely to become insolvent and may even be forced into bankruptcy.

IMPORTANTCE OF WORKING CAPITALThe source of any enterprise depends on the proper management of working capital aims at protecting the purchasing power of assets and maximizing the return on investments, sales expansion, dividend declaration, plant expansion, increased salaries and wages, rising price level etc., but added strain on working capital maintenance.

CONCEPTS OF WORKING CAPITAL

There are two concepts of Working Capital 1. Gross Working Capital 2. Net Working Capital Gross Working Capital:It refers to the companys investments in Current assets. Current Assets are the assets which can be converted into cash within an accounting year and include cash, short-term securities, debtors, bills receivables and stock. Net Working Capital:It refers to the difference between current assets and current liabilities. Current Liabilities are those claims of outsiders, which are expected to mature for payment within an accounting year and include creditors, bills payable and outstanding expenses. Networking Capital can be positive or negative.

A positive net working capital will arise when current liabilities are in excess of current liabilities. A negative net working capital occurs when current liabilities are in excess of current assets. The two concepts of working capital gross and networking capital are not exclusive, rather they have equal significance from management view point, and the gross working capital concept focuses attention on two aspects of current assets management... 1Optimum investment current assets and

2Financing of current assets. Net working capital being the difference between current assets and current liabilities. It is a qualitative concept. It aims at: 1The firms liquidity position and 2Financing of current assets 3Suggests the extent to which working capital needs may be financed by permanent sources of funds. 4The consideration of the level of investment in current assets should avoid two danger points. Current assets have excessive and inadequate investments. Investment in current assets should be just adequate, not more not less to the needs of the business firm. Excessive investment in current assets should be avoided because it impairs the firms profitability an ideal investments nothing. On the other hand inadequate amount of working capital can threaten solvency of the firm because of its inability to meet its current obligations. CHARACTERISTICS OF CURRENT ASSETS In the management of working capital two characteristics of current assets must borne in mind. 1Short-term span 2Swiftly transformation into other assets form Current assets have a short life span. Accounts receivable may have a life span of 30 to 60 days, inventories may be held for 30 days to 100 days and cash may be held idle for week or two. Each current asset is swiftly transformed into other assets form. Cash is used for acquiring raw materials. Raw materials are untransformed into finished goods (this transformation may

involve several stages of work in progress), finished goods, generally sold on credit, are converted into accounts receivable and finally, accounts receivables, on realization generates cash. The need for current assets arises because of the operating cycle. The operating cycle is a continuous process and therefore, the need for current assets is felt constantly. But the magnitude of current assets needed in not always the same, it increases and decreases over time. However, there is always a minimum level of current assets which time is continuously required by the firm to carry on its business operations. This minimum level of current assets is referred to as permanent or fixed working capital. Depending upon the changes in production and sales, the need for working capital, over and above permanent working capital will fluctuate. The extra working capital needed to support the changing production and sales an activity is called fluctuating or variable or temporary working capital. DETERMINANTS OF WORKING CAPITAL There are no set rules to determine the working capital requirements of firms. A large number of factors, each having a different importance, influence working capital needs of firms. Therefore, an analysis of relevant factors should be made in order to determine total investment in working capital. The following is the description of factors, which generally influence the working capital requirements of firms.

NATURE AND SIZE OF BUSINESS:

The size of business also has an important impact on its working capital needs. Size may be measured in terms of the scale of operations. A firm with large scale of operations will need working capital than small term. The working

capital requirements of a firm are basically influenced by the nature of business trading and financial firm has a very less investment infixed assets, but require a large sum of money to be invested in working capital.

TECHNOLOGY AND MANUFACTURING POLICY

The manufacturing cycle starts with the purchase and use of raw materials and completes with the production of finished goods. Longer the manufacturing cycle, larger will be the firms working capital requirements. An extended manufacturing time span means a larger tie-up of funds in inventories. Thus if there are alternative technologies of manufacturing a product, the technological process with the shortest manufacturing cycle may be chooses.

FIRMS CREDIT POLICY

The credit policy of the firm affects the working capital by influencing the level of debtors. The credit term to be granted to customers may depend upon the forms of the industry to which the firm belongs.AVAILABILITY OF CREDIT

Creditors also affect the working capital requirements of a firm. A firm will need less working capital if liberal credit terms are available to it.OPERATING EFFICIENCY

The operating efficiency of the firm relates to the optimum utilization of resources at minimum costs. The firm will be effectively contributing in keeping the working capital investment at a lower level if it is efficient to controlling operating costs and utilizing current assets. The use of working capital is improved and pace of a cash conversion cycle is accelerated with

operating efficiency.BUSINESS FLUCTUATIONS

Most firms experience seasonal and cyclical fluctuations in the demand for their products and services. This business variation effects the working capital requirements especially the temporary working capital requirement of the firm. When these is an upward swing in the economy, sales will increase and vice-versa.PRODUCTION POLICY

A steady production policy will cause inventories to accumulate during the offseason periods and the firm will be exposed to greater inventory cost and risk. Thus, if the cost and risks of maintaining a constant production schedules are high, the firm may adopt the policy of varying its production schedules in accordance with the change in demand.GROWTH AND EXPANSION ACTIVITIES

The working capital needs of firm increases it growth in terms of sales of fixed assets. If is difficult to precisely determine the relationship between volume of sales and the working capital needs. The critical fact however that is the need for increased working capital funds does not follow growth in business activities but precedes it.PROFIT MARGIN AND PROFIT APPROPRIATION

Firms differ in their capacity to generate profit from business operations. Some firms enjoy a dominant position, due to quality product or good marketing management or monopoly power in the market and earn a high profit margin. Some other firms may have to operate in an environment of intense competition

and may earn low margin of profits. A high net profit margin contributes towards the working capital pool. In fact the net profit is a source of working capital to the extent it has earned in cash.

DIMIENSIONS OF WORKING CAPITAL MANAGEMENT Working Capital Management refers to the administration of all aspects of current assets namely cash, marketable securities, and debtors are many aspects of working capital management, which makes it an important function of the financial manager. Empirical observations show that the financial managers have to spend much of their time to the daily internal operations, relating to the current assets and current liabilities of the firms. Investments in current assets represent a very significant portion of the total investment in assets. It is particularly very important for small firms to manage their current liabilities in financing current assets is far significant incase of small firms, as unlike large firms, the difficulties in raising long terms finances. There is a direct relationship between sale and working capital needs. As sales grow, the firm needs to invest more in inventories and book debts. These needs become very frequent and fast when sales grow continuously. It may thus be concluded that all precautions should be taken for the effective and efficient management of working capital. To decide the levels and financing of current assets, the risk return implications must be evaluated.

FINANCING CURRENT ASSETS

The firm must find out the sources of funds to finance its current assets. It can adopt different financing policies. Three types of financing be distinguished as follows. 1Long term financing 2Short term financing 3Spontaneous financing The important sources of long-term financing are shares, debentures, preference shares, retained earnings and debt from financial institutions. Short term financing refers to those sources of short credit that the firm must arranged in advance. These sources include short term bank loans, commercial papers and factoring receivable. Spontaneous financing refers to the automatic sources of short term funds. The major sources of such financing are trade credit (creditors and bill payable) and outstanding expenses. Spontaneous sources of finance are cost free. TECHNIQUES OF THE MANAGEMENT WORKING CAPITAL In this section a few important techniques of working capital are presented. All techniques of working capital management can be divided into two parts. Techniques relevant for the management of working capital as a whole and the techniques relevant for the management of each component of working capital cash account receivable and inventory.

Techniques Relevant For the Management of Working Capital

One of the very important issues in the management of working capital is to decide how much to invest in current assets. The investment in current assets is generally influenced by sales volume. Therefore before firm is able to decide about his quantum of working capital. It should be forecast its feature sales volume accurately or near accurately. This is equal true about the components of working capital as well.TIME SERIES MODELS

The time series models are based on the assumptions that the past trend will continue repeating in the future. In the construction of tikes series, models, historical recordings of the factors to be forecasted is taken into the account and their pattern and the relationship over the time is established on the basis of the pattern so established future forecast is made.ECONOMETRIC MODELS

The models here are the equations consisting of dependent and independent variable. These equations attempt to establish the nature of relationship between variables enabling the analysts to study the value of the dependent variable on the basis of the value of the independent variable. These models are sophisticated, very useful techniques. WORKING CAPITAL FORECASTING TECHNIQUES Having determined the sales accurately, steps can to taken to forecast working capital and the various components of it. Working capital requirements can be, determined into two. 1Percentage Sales method. 2Operational Cycle method.

NEED FOR WORKING CAPITAL

The need for working capital to run the day-to-day business activities cannot be overemphasized. We will hardly find a business firm, which does not require any amount of working capital. We know that a firm should aim at maximizing the wealth of its shareholders. In its endeavor to do so, a firm should earn sufficient return from its operations. The firm has to invest enough funds in current assets of generating sales. Current assets are needed because sales do not convert into cash instantaneously. There is always an operating cycle involved in the conversion of sales into cash.OPERATING CYCLE:

There is a difference between current assets and fixed assets in terms of their liquidity. A firm requires many years to recover the initial investment in fixed assets such as plant and machinery or land and buildings. Investment in current assets such as inventories and debtors is realized during the firms operating cycle which is usually less than a year. Operating cycle is the time duration required to convert sales, after the conversion of resources into inventories into cash. The operating cycle of a manufacturing company involves three phases acquisition of resources such as raw material, labour, power and fuel etc., manufacture of product which included conversion of raw material into work-in-progress into finished goods, sale of the produce either for cash or on credit create accounts receivable for collection. Stocks of raw material and work-in-process are kept to ensure smooth production and to guard against non-availability of raw material and other components. The firm holds stock of finished goods to meet the demands of customers on continuous basis and sudden demand from some customers.

Debtors are created because goods are sold on credit for marketing and competitive reasons. Thus, a firm makes adequate investment in inventories and debtors, for smooth, uninterrupted production and sale.Fig:

The total of inventory conversion period and debtors conversion period is referred to as gross operating cycle. The difference between operating cycle and payables deferral period is net operating cycle. Net operating cycle is also referred to as cash conversion cycle.

Statement of the ProblemIn order to maintain flows operations every firm needs certain amount of current assets. For example cash is required to pay for expenses or to meet obligations for services received or goods purchased etc, by a firm. On the identical plane inventories are required to provide the link between production and sale. Similarly accounts receivable generate when goods are sold on credit.

Needless to mention cash, bank, debtors, bills receivables closing stock (including raw materials, work in process, finished goods), prepayments and certain other deposits and investments which are temporary in nature present current assets of a firm. Economists like Mead, Mallet, Backer and Field are of the opinion that the whole of these current assets forms the working capital of a firm. And this concept of working capital of a firm is frequently termed as gross working capital, in the area of financial management.

Excessive working capital is bad and causes following: 1. It results in unnecessary accumulation of inventories. Thus, chances of inventories mishandling, wastage, theft and losses increase. 2. It is an indication of defective credit policy and slag credit collection period. Consequently higher incidence of bad debts results, which adversely affects profits. 3. It makes management complacent, which generates into managerial inefficiency. 4. Tendencies of accumulating inventories tend to make speculative profits grow. This may tend to make divided policy liberal and difficult to cope with future when firm is unable to make speculative profits. Inadequate working capital is also bad and causes following: 1. It stagnates growth. It becomes difficult for the firm to undertake profitable projects due to inadequacy of funds. 2. It becomes difficult to implement operating plans and achieve firms profit target. 3. Operating inefficiencies creep in and it becomes difficult even to meet

day-to-day commitments. 4. Fixed assets are not efficiently utilized for the lack of working capital funds. Thus the firms profit would deteriorate. 5. Paucity of working capital funds render the firm unable to avail attractive credit opportunities. 6. The firm losses it reputations when it is not in a position to honor its short-term obligations. As a result, the firm faces tight credit terms.

An enlightened management should therefore maintain the right amount of working capital on and continue basis, only then a proper functioning of operations will be ensured. OPTIMUM WORKING CAPITAL Determining the optimal level of current assets involve a trade-off between costs that rise with current assets and costs that fall with current assets. The former are referred to as carrying cost and lather as shortage costs carrying costs are mainly in the nature of the cost of financing a higher level of current cost are mainly in the nature of the cost of financing a higher level of current assets. Shortage of cost is mainly in the form of disruption in production schedule, loss of sales, and loss of customer goodwill. Therefore, the optimal levels of current assets are described as the total costs (The sum of carrying cost and shortage costs) are minimized at that level. It has been explained in the following diagram.

SCOPE OF THE STUDY Since it will not be possible to conduct a micro level study of all cement industries in Andhra Pradesh, the study is restricted to Kesoram Cement only. The Project was done in only 45 days The study is focused on financial performance through comparative analysis of Kesoram Cement Limited. The purpose the tools comparative and ratio analysis applied.

OBJECTIVES OF THE STUDY 1. To present the conceptual framework relating to management of working Capital

2. To Examine the size of invest and turnover of working capital in an overall manner including financing of current assets. 3. To know the inventory management practices of Kesoram Cement in terms of its size, turnover and collection polices 4. To assess the receivables management practices of Kesoram Cement in Terms of its size, turnover and collection polices 5. To offer suitable suggestion for the efficient management of working capital in kesoram Cement. Keeping in view the inadequacies highlighted by the study

LIMITATIONS OF THE STUDY1) The study is limited only for a period of 5 years i.e. 2003-2008. 2) The study period of 45 days is not sufficient. 3) The study is limited up to the data and information provided as kesoram cement and is annual reports. 4) This study is confined to the Kesoram Cement Industries Ltd, Basanth nagar only.

RESEARCH METHODOLOGY OF THE STUDY: An analysis of various ratios involving the components of working capital has been

carried out in order to determine the adequacy of current assets, quick assets, inventory and finally the overall adequacy of working capital. The operating cycle for each period has been computed so that effective measures can be taken to avoid any unlamented delay in the process of conversion of sales into cash.

Finally, a study has been conducted on the financing of working capital of the company by the bank, the types of credit facility provided by them and the concept of maximum perm risible bank finance and its relevance today.

All the above has been done with the help of data extracted from the annual reports of the past five years and the credit monitoring authority report by the company and audited by the bank which provided credit to the company.

DATA COLLECTIONPrimary data:It is the information collected directly with reference. In this study, it is mainly through interviews with concerned officers and staffs either individually or collectively. Some of the information had been verified or supplemented with personal observation, the data collected through conducting the personal interview with the officers of the Kesoram Industries Limited.

Secondary data:The secondary data was collected from already published sources such as pamphlets, annual reports, return and internal records.

Collection of required data from annual reports of KESORAM Industries Limited from the year 2003-2008 Reference from text books and journals relating to financial management.

CHAPTERR-II CEMENT INDUSTRY

CEMENT INDUSTRYGENERAL INTRODUCTION Cement the word as per OXFORD as modern it is commonly used is used is any substance applied soft for sticking things. But cement means is most vital and important for material for modern constructions. It is a material which sets and hardness when mixed with water. Cement is basically used in construction as a binding agent. In ancient times, clay bricks and stones have been used for construction works. The Romans were using a binding or cementing material that would harden under water. The First Systematic efforts were made by SMEATION who under took the erection of new lighthouse in 1756.He observed that the production obtained by burning limestone was the best cementing material work under water. After fifty year UICAT French chemist, produced hydraulic cement by burning finely ground clay and clay and used it in the paste. Cement invented by JOSEPH ASPDIN in 1824, since hardened cement paste resembled Portland stone in England in colour, he named it as Portland cement a name which has carried over the century. Portland cement was manufactured in United States of America in 1975.

In India South Industries, Madras, production cement for the first time in 1904.This unit has capacity of 30 ton/day was based on lime from sea. By 1913,

however three units started their operation with a combined installed capacity of 75,000 tonnes per annum. In 1914,indigenous production fess for short domestic demand necessitating an import of 165723 tonnes shipment difficulties and foreign trade relation during the first world war year acted as a catalyst for the development of indigenous industry, and by 1924 the total installed capacity grew to 559800 tonnes per annum. In 1963, all the cement companies with exception of SONE VALLEY PORTLAND CEMENT COMPANIES LIMITED merged to from the ASSOCIATE CEMENT COMPANIES LIMITED. This has more facilitated a cost of reduction as well as uniformity in quality. By 1947 the installed capacity of the industry raised to 2.2 million tones per annum. After partition five of the cement production units in the country went to Pakistan and total installed capacity of the eighteen units that remained in India was 1.5 million tones per annum. This increased to 3.8 million tones by 195051. In the three decades (1950-80).The capacity expansion was between 7 and 8 million tones per decade. The targets set in respect of additional capacity generation was released with the impetus given by the partial decontrol announced in 1982, several unit lockup project for expansions of capacity and modernization which contributed to words increased production.

DEFINITION OF CEMENT Cement may be defined, as it is a mixture of calcium silicate and aluminates, which have the property of settings and hardening under water the amount silica, alumina that is present in each crust are sufficient to combine with

calcium oxide (CAO) to from the corresponding calcium silicate and aluminates. Classification of cement Cement is three types 1. 2. 3. Pozzolanatic Cement It consists of mixtures of silicate calcium and aluminum. Shows the hydraulic property when it is in the form of powder and being mixed with suitable proportion when it is in the form of powder and bong mixed with suitable proportion of lime. The rate of hardening is much slower and the comprehensive strength developed is about a half of Portland cement it is found more resistance to the chemical action than others. Natural Cement This is natural occurring material, It is obtained from cement rocks .These cement rocks are claying limestone containing solicits, aluminates of calcium. The selling property of this cement is more than the Portland cement but is comprehensive strength is half of its. Puzzolantic Cement Natural Cement Portland Cement

Portland cement 1. Ordinary Portland cement 2. Rapid hardening Portland cement 3. Lows heat cement 4. White or coloured cement

5. Water proof Portland cement 6. Portland cement 7. Portland puzzling cement 8. Sulphate resisting cements 9. Oil-well cement.

CHAPTER III COMPANY PROFILE

PROFILE OF THE COMPANY Kesoram cement industry is one among the industrial gains in the country,

today serving the nation on the industrial front. Kesoram Industries Ltd has a chorused and eventful history dating back to the 1920s. When the Industrial house of Birla acquired it with only a textile mill under its banner in 1927 it grew from strength to strength and spread its activity to newer fields like rayon, pulp, transparent paper, spun pipes, refractories and other products. The Government of India de-licensed the cement industry in the year 1966 with a view to attract private entrepreneurs to argument the cement production. Kesoram rose to the occasion and decided to setup few cement plants in the country. Kesoram cement industry in corporate by the promoter of Birla group came up with a cement plant at Basantnagar located in Karimnagar dist of A.P which is 8 KM away from Ramagundam railway station linking Chennai and New Delhi. The capacity of the plant was 8.26 Lakhs tonnes per annum. The company first unit at Bassantnagar with a capacity of 2.5 Lakhs tonnes in corporation hum bolts, suspension preheated system was commissioned during the year 1969. The second unit was setup in 1971, which added 2.00 Lakh tonnes capacity. The third unit with a capacity 2.5 Lakh tonnes went to stream in 1978. It was further expanded to make it a 9.00 lakhs tonnes plant at Basantnagar. The coal for this company is being a supplied singareni colliery and power is obtained from APTRANSCO. The demand for the factory is about 21 MW. The Kesoram cement industry came up with captive thermal power plant of 15.7 MW capacities for uninterrupted power supply. Which would ensure consistency in the supply of cement even during power cut periods?

Birla supreme is popular brand Kesoram cement from its prestigious plant of Basantnagar in AP., which has out standing track record in performances and productivity, serving the national for the last three decades. It has proved its distinction by bagging several national and state awards. It also has the distinction of achieving optimum capacity utilization. Kesoram offers a choice of top quality Portland cement of light, heavy construction and allied application quality is built in every fact of the operations. The plant layout is rational begin with the limestone is rich in calcium carbonate, a key factor that influenced the quality of the final product. The dry process technology used in the latest computerized monitoring.

Type of Sales: 1. Depot Sales 2. Site Sales Depot Sales: The required amount of cement is supplied to the dealers from the the depot. The Branches of company make these sales. Site Sales: The company directly sells the required quantity of cement to required group or organization dealers etc. Distribution Channel:

Kesoram Cement follows intensive type of Distribution channel. Intensive Distribution: In an Intensive distribution strategy the manufacture makes the goods or services in as many outlets as possible. Dealers Selections: The company selects the dealers after taking into consideration the financial position the are, the dealers opinion regarding the product. The company takes more attention for selecting dealers in the urban region. The incentive facilities given to the dealers by the company are quantity (trade discount) has count and sliding scale discount (A Annual Discount). Kesoram Cement undertaking marketing activities extensively In the state of AP, Karnataka, Kerala, Maharastra & Gujarat. In AP Sales depots are located in different areas like a Karimnagar, Warangal Nizamabad, Vijaywada and Nellore. In other states it has opened 10 depots. The market share of Kesoram cement in AP is 7.59%. The market share of the company in various states is shown as under. States Karnataka Tamil Nadu Kerala Maharastra Market Share 4.94% 0.94% 0.29% 2.81%

The share of Kesoram Cement in the all India cement market is 1.19% PRODUCTION OF KESORAM CEMENT Year 1985-86 1995-96 2009-10 Tonnes 4,45,441 8,05,921(more capacity) 7,82,385(Due to power cut)

An average sale of the company is between 2000 to 2200 metric tonnes per day. The company takes order through its branch builders, dealers and from any organization if ordered for bulk quantity. Sales Promotion The company has got a health sales promotion it has taken much concentration in advertising of the product through various mean like 1. News paper 2. Television 3. Wall Painting 4. Bus Panels 5. Shop Paintings.

KESORAM CEMENT ADVANTAGES 1. Helps in designing seeker and more elegant structures, giving greater

Flexibility in design concept. 2. Due to its fine quality, super fine construction can be achieved 3. It gives maximum strength at minimum use of cement with water in the water cement ration especially the 53 grade 4. Better water proofing is achieved due to low heat of hydration, as the shrinkage will be less, which means fewer cracks. 5. Better finish is achieved due to fitness and hence better workability. . Thus plastering becomes easier with better finish

ABOUT THE INDIAN CEMENT INDUSTRY By starting production in 1914 the story of Indian cement industry is a stage of continuous growth. India is the worlds 4th largest cement producer after China, Japan and USA. So far annual production and demand have been growing a pace at roughly 68 million tonnes with an installed capacity of 82 million tonnes. In the remaining two years of 8th plan an additional capacity of 23 million tonnes has been planned. Assuming that at latest 16 million tonnes will actually come up. India will have an installed capacity of 98 million tonnes.By the turn of the country would be well over 100 million tonnes. India is well endowed with cement grade limestone (90 billion tonnes) and coal (190 billion tonnes). The basic raw material required cement manufactured and

is self sufficient in manufacture of cement making machinerys. During the nineties it has particularly impressive expansion with a growth rate of 10 percent. The strength and vitality of Indian cement industry can be gauged by the interest shown and support given by World Bank considering the excellent performance of the industry in utilizing the loans and achieving the objectives and targets. The World Bank is examine the feasibility of providing a third line of credit for further upgrading the industry n varying areas, which will make it global, with the liberalization polices of India government the industry is posed for high growth rates in nineties and the installed is expected to cross 100 million tonnes and production 90 million tonnes by 2000 AD. Indias cement industry has added just about 10 million tonnes of additional capacity 1994-96. The industry has fabulous scope for exporting its product to countries like the USA, UK, Bangladesh, Nepal and other several countries. But there are not enough wagons to transport cement for shipment. A leading producer of eastern India say his order book is full for the coming 8 to 9 months, but where are the wagons in 1994-95, 75% indent made for wagons. The rail dispatches decreased from 50% to 45%. Demand growth rate in India 6.5% compare to other countries. Wagon shortage hits the industrys prospects harder because of the uniqueness of the plant location. Most of the plants are located in interior and backward areas. One tonne of cement has to pay in excise duty of Rs 350 and central sales tax 4%. Western part of India production growth rate of 176%,9% to north and 6% for the east. Government purchases have gone down about 20% following privatization of infrastructure activities.

India inspire of being the 4th biggest producer of cement in the world has still a very low per capital consumption of cement. Indias cement industry has indeed tableaus prospect added Large Plants (in India).

Cement companies Cement plant Installed capacity Tonnes a) Private Sector b) Public Sector

51 Nos 99 Nos 64.84 million 55.34 9.50

Total Investment approximately Manpower

10,000 crores Over 1.25 lakhs

Captive power generation capacity installed Diesel Thermal 54.77 MW 174.75 MW

Consumption norms for producing one tonne of cement Coal 20%

Power

100 KW

TECHNOLOGY Cement may be manufactured employing three alternative technologies. a) The largely out model well process technology b) The more modern dry process that requires only 19% coal utilization c) The latest precipitator technology through which optimum utilization may be achieved. Here the calculator or raw. Material is partly completely carried out before the feed enters the rotator kilnbesides saving power, the adoption of this technology enable an increase in installed capacity by 30-50% the 30,000 tonnes per day plan being set in the country use this technology PRICING POLICY The price of cement was first determined by the Government in August 1942 on cost plus first determined the price of cement. The price there after was basically on the recommendation of the tariff commission after their successive enquiries held in 1953, 1958, 1974 and 1978. In 1974 the government retained the uniform retention price but rejected the rehabilitation allowances as also the creation of the revolving fund for establishing new plant 9 million tonnes capacity. In December 1978 a high level committee of Lavaraj Kumar appointed by the Government recommended a new price structure based on costs prevailing at that time.

DISTRIBUTION SYSTEM Distribution of cement was entirely under government control until 1982. At present the industry has to make an arrangement towards the levy quota, which is to be sold compulsorily to the government. The rest of the output or open market quota may be sold in the open market evolved prices. The output lifted by the government is allocated state wise. PACKAGING OF CEMENT Cement is packed in bags of 50 kg Per bag. The types of packing material are as follows. a) Jute Bags: Jute Bags conforming of IS-2580 are used as packing material. b) HDPE/PP Bags: These are manufactured from poly propylene (PP) and High-Density Poly ethylene tapes, Woven into fabric on circular looms. c) Paper linked HEPE Bags/Paper Bags: At present there is no ISI specification for these bags. These are made from HDPE line with Kraft paper on the outside. d) Light Weight Jute Bags: These are similar to suggest, is of light weight. This is covered under ISI 2154 . These bags are cheaper by about 0.50ps, as compared to jute bags. e) Ploy Jute Bags: These are made of fabric woven with twine and HDPF types. STORING OF CEMENT Portland cement is a very fine material and as such it is highly Hygroscopes that is say readily absorbs moisture not only in the form of mistier but also from the

air it is necessary, therefore to protect it from dampness before it is to fulfill its function. Every year and particularly in the monsoon, large quantities if cement are spoilt due to neglect in keeping the cement bags absolutely dry. There cement is stored flowingly. The first requisite for storing bagged Portland cement is a building or ashes, which is completely weather proof. The walls are of waterproof concrete masonry constructions, overload with a waterproofing. Course the window are few and small and kept tightly shut. This is to prevent moisture from outside atmosphere entering the building. The floor is a 150 mm thick concrete slab laid on a dry course of soiling and 1.20 mm above ground level. The ground is sloping way from the building to prevent accumulations of rain water in its vicinity. All these precautions ensure that the floor will remain absolutely dry. The plinth is fairly high so that a lorry can back conveniently to the door and the chassis and building floor are almost same level, thus making loading and unloading of bags very easy. GOVERNMENT POLICY ON CEMENT INDUSTRY The cement factories were facing problem of large problem of large-scale absence of their plant and machinery. There id immense scope for rejuvenation modernization and expansion of our cement industry, modernization in nutshells, means using modern technological advances to ensure that productivity increases, quality improved and the cost of input is reduced to the maximum extend possible. The Government policy lays much emphasis on modernization and up gradation of technology; the planning commission in its approach paper of the seventh plan has observed that the focus of industrial development in the seventh plan will be a graduation technology, modernization better utilization of assets and

promotion of efficiency. In this context, the government ought to bear in mind that capacity expansion and modernization could be affected only if the industrys unable to secure the promises 12% post tax return on net worth. Hither to the cement units have been obliged to absorb completely the escalation in cost in the absence of a suitable like in cement price and hence there has been considerable reduction in the internal generation of funds. It is therefore of vital importance that the deterioration in the financial I if the industry is arrested and the industry rejuvenated to continue unimpeded the process accelerated growth to attain the capacity target of 62 million tonnes by the end of seventh plant. This would call for necessarily the adoption of formula under which there should be an automatic increase in the price of levy cement off set the escalation in costs.

STATEWISE CEMENT PLANTS Serial No 01 02 03 04 05 06 07 08 State Andhra Pradesh Assam Bihar Delhi Gujarat Harayana Himachal Pradesh Jammu Kashmir Number of cement plant (Large) 19 01 07 01 13 02 04 01

09 10

Karnataka Kerala

09 01

LIST OF AWARDS BAGGED KESORAM CEMENT S.N o 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 YEAR 1984 1985 1986 1987 DETAILS FAPPCI Award for Best Family Planning Efforts in states FAPPCI Award for Best Industrial Promotion/Expansion Efforts in the state. Best Family Planning in the state National Productivity Award

1987-88 National Award for Mines Safety 1988 National Productivity Award

1988-89 National Award for Mines Safety 1989-90 Best Family Planning Efforts in states 1990-91 AP State Award for Best Industrial Relations 1991 1991 AP State Yahamanya Rathna and best management Award FAPPCI Award for Best Family Planning Efforts in states

1991-92 NCBMs National Award for Energy Performance 199394 1993 1995 1996 1997 Indira Gandhi Memorial National award for Excellence in industry FAPPCI Award Jawaharlal Nehru Silver Trophy Best Management Award by AP Govt. Mines Safety Award in AP Mines Safety Award in AP

1997-98 Best Workers Welfare by FAPCCI 1998 Achieved ISO-9002 Certification from Bureau of Indian Standarsd

20

1999

The Best Pay roll saving group award among private sector. 1st Prize in the level by International savings organization, Govt of India.

21 22 23

2000-01 The Best efforts in rural development by an industry in ther state by the federation of AP of Commerce 7 industry (FAPCCI) 2001 1st prize Mines environment and pollution control

2001-02 Award for efforts in environmental protection in the region by the Godavari Pradushana Pariharana Paryavarna Parieractiona Avkhamu (GPPPPG) ( A Voluntary organization for pollution and control and environmnent) 2003 First prize for HORTICULTURE SHOW (for corombola fruit) held at public gardens, Hyderabad being organized by the director of Horticulture

24

25

2008-09 Award for best efforts in environmental protection in the region by the Godavari Pradushana Pariharana Paryavarna Parieractiona Avkhamu (GPPPPG) ( A Voluntary organization for pollution and control and environmnent) 2003 2003 Achieved ISO14001 certification pertaining to environment from Bureau of Indian Standards Vana Mithra Awards from the district collector

26 27 28 29 30

2008-09 Award for the best efforts put in by kesoram cement for protecting the environment. 2004 2005 Achieved OHSAS-18001 certification from DNV Delhi First prize for HORTICULTURE SHOW (for sapota, Banana & corombola fruit) in connection with Shathavahanakalotsavalu.

WELFARE AND RECREATION FACILITIES AT A GLANCE 1) Recreation Club: For the Purpose of recreation facilities tow auditors are provided for the employees to indoor games like shuttle, chess, caroms

and for organising culture functions and activities like drama, music and dance concert etc. 2) Libraries and Reading Rooms: The Company has provided libraries and reading rooms for the benefit of the employee. About 5000 books are available in read the libraries. All kinds of newspaper and magazines are made available in reading rooms for the daily reading rooms for the employees and their families. 3) Canteen: Is provided to cater to the needs of the employees for the supply of snacks, tea, coffee and meals. 4) Schools: One English Medium School and Telugu Medium School are provided to meet the educational requirements of the employees children. 5) Dispensary: The Company has provided a dispensary with a qualified medical officer and Para medical staff for the benefit or the employee. The employees conversed under ESI scheme has to avail the medical facilities from the ESI Hospital.

6) House Journals: A House Journal in the name of Basantnagar Samachar is brought out quarterly where in all the important activities of the plant are published. 7) Kesoram Consumer Co-Operative Store : Consumer Co-Operative

stores are available to meet the needs of the employees for supply of essential commodities like rice, wheat, sugar, kerosene on cash credit basis. 8) Sport and Games: Competitors in sport and games are conducted every year for 15th August & 26th January.

MANAGEMENT WORKING CAPITAL IN KESORAM CEMENT INDUSTRIES-An Analysis Working capital management is connected with the resolution of the problem in managing current assets and current liabilities. The goal of working capital management is to maintain optimum level of current assets and current liabilities by ensuring the both liquidity and profitability. If firm cannot

maintain satisfactory of working capital their are likely to fall in liquidity trap. Sources of short term financing must be cautiously managed to ensure that there are obtained and used in the best possible way. Integrating the short term obligation with the short-terms assets and liabilities in the main them of working capital management. The working capital objective of the KCI Pvt Ltd uses forecasting method to determine working capital requirement, It takes sakes as the basis for working capital determination, The company prepares working capital budget are prepared in coordination with budget, sales and collect function. The companys policy regarding financing of working capital is all variable needs with shortterm sources and only for the period needed. The sources of working capital financing as per priority are cash credit from banks. Advance from customers equity and long-term sources and working capital loans for central government. In this organization, Finance Director is the executive responsible for the over all working capital management. The company follows new working capital and current ratio as working capital norm and the company review the working capital shortage and also there were excess working capital situations. The current assets of the company mainly include inventories, sundry debtors, cash and bank balance and loan and advances. Current liabilities constitute sundry creditors provisions and other liabilities. The structure of current assets and currency liabilities of KCI Pvt. Ltd. Is given below. Current Assets: i) Inventories: a) Raw and packing material b) Stock in progress

c) Finished goods d) Consumables e) Stores and Spares ii) Sundry Debtors: a) Debts b) Others iii) Cash and bank balance a) Cash in hand b) Cash at bank iv) Loans and Advances a) Advance recoverable in cash b) Prepaid expenses c) Deposit recoverable d) Tax deducted at source e) Advance tax f) Advances to suppliers

Current Liabilities i) Sundry Creditors a) Creditors for material b) Creditors for capital expenditure ii) Provisions a) Provision for Income-Tax b) Provision for Bonus c) Proposed Dividend d) Dividend tax

iii)

Other Liabilities a) Deposits b) Advances from customers c) Interest accrued but not due d) Tax deducted at source payable e) Others

In order to assess the adequacy and effectiveness for working policies of KCI PVt Ltd. Over the last five years a detailed analysis in to working capital as takes up with help of trend analysis and accounting rations.

NETWORKING CAPITAL (NWC) Net working capital is the excess of current assets over current liabilities symbolically, NWC=CA-CL. IN order to know the NWC of KCI Pvt. LTd. It is proposed to calculate and present net working capital requirements for the period commencing from 1998-99 to 2003-04.

COMPARATIVE STATEMENT ANALYSIS As the very name signifies, comparative financial statements are statements of the financial position of a business so formulated as to focus on the elements contained there in and provide the necessary time perspective. So normally, it is the balance sheet and profit and loss account, which alone are prepared in a comparative form, since it is these two statements, which are considered as important financial statements. Moreover, it is thought these two statements and financial positional and the operation al results of any business can be determined.

Comparative financial statements are designed to disclose the following 1. Absolute data 2. Increase and decrease in absolute data 3. Increase and decrease in absolute data in terms of percentage 4. Comparision expressed in ration 5. Percentage of totals. Comparative financial statements are very useful to the financial analyst since they contain figures drawn from single statement and also provide necessary information for the study of financial and operating results over a period of time. They point out the direction are the trend of the movement as regards financial position and operating results of the business concern.

Comparisons will become effective, only if the data compared truly reflects the consistency in the application of generally accepted accounting principles for date-to-date or period-to-period. The analyst should also keep in mind the price level change that have taken place between the dates of different transaction and that of preparation of financial statements. Where there is a substantial price fluctuation. The analyst must exercise great caution while interpreting the values. COMPARATIVE BALANCE SHEET: Normally any increase and decrease in the value if various assets and liabilities as well as in proprietors equity or capital, resulting from the operational activities of the business, can be easily observed by means comparison of the

balance sheet at the beginning and end of the accounting period. To facilitate comparison a simple device known as comparative balance sheet, may be used. Such method often yields valuable information as regards the progress of the business concern. While the single balance sheet represent balance sheet represent balances of accounts drawn at the end of an accounting period., the comparative balance sheet and current balance sheet represents only the balances of accounts drawn on different dates, but also the extent of increase or decrease between these two dates.

The single balance sheet focuses on the financial status of the concern as on a particular date, the comparative balance sheet focuses on the charges that have taken place in one accounting period as compared with another. The changing is the direct outcome of operational activities. Conversion of assets liabilities and capitals as well as interactions among assets, liability and capital. The form of comparative balance sheet consists of two columns for the data of the previous balance sheet and current balance sheet ad the third column for disclosing increase and decrease in various terms. A fourth column shows the percentage of increase and decrease in values.

CHAPTER IV ANALYSIS & INTERPRETATION

COMPARATIVE STATEMENT OF WORKING

CAPITAL

FOR THE YEAR 2005-2006 Particular Current Assets a) Inventories b) Sundry Debtors c) Cash & Bank Balance d) Other current assets e) Loans and Advances Total Current Assets (A) Current Liabilities (B) Working Capital (AB) (+) Provisions Net Working Capital Interpretation: Interpretation of comparative working capital statement of Kesoram cement company Ltd between the years 2001-2004 to 2005-2006 In the year 2010-11 the closing stock 0% raw materials work in progress and finished goods in Kesoram cement was Rs 1,82,17,77,224 and the year 2009-10 the inventory is Rs 80,00,65,303 there is an increased in the stock balance by 127.7% i.e. Rs 1,02,17,11,921. The Average inventory for two years study period is Rs 1,31,09,21,263. In the year 2010-11 sundry debtors in Kesoram cement company ltd was Rs 800065303 991705719 91528024 115506801 878270934 1821777224 1911277269 251092974 559090805 763136566 1021711921 919571550 159564950 443584004 -115134368 2429298057 816152547 1613145510 289974472 1903119982 127.7 92.72 174.3 384 -13.1 84.43 101.5 77.82 202.4 85.87 2005 2006 Absolute Change Change in %

2877076781 5306374838 804261757 1620414304

2072815024 3685960534 143258232 2216073256 433233214 419193748

1,91,12,77,263 and the year 2007-2008 the sundry debtors Rs 99,17,17,05,719 there is increased by 92.72% i.e. Rs 95,95,71,550. Cash and bank balance have increased to Rs 25,10,92,974 from Rs 9,15,28,024 and other current assets also increased. In the year 2009-10 the loans and advances of kesoram cement company Ltd was Rs 76,31,36,556 and in the year 2001-02 loans and advances of kesoram cement company Ltd is Rs 87,82,70,934. It is decreased to (-) Rs 11,51,34,368. The total current assets increased from Rs 2,87,70,76,781 to Rs 5,30,63,74,838 i.e. Rs 2,42,92,98,057 (84.43%). In the year of 2001-02 the current liabilities was Rs 80,42,41,757 and in the year of 2008-09 current liabilities are Rs 1,62,04,14,14,304. There is increase by Rs 81,62,52,547 i.e. 101.47% this is resulted is to increase in current liability The working capital of Kesoram cement company Ltd is increased from Rs 2,07,28,15,024 to Rs 3,68,59,60,534. But the provisions of kesoram cement company Ltd have increased from Rs 14,32,58,232 to Rs 43,32,33,214 i.e. Rs 28,99,74,982 i.e. 202.14% In the year 2009-10 the net working capital was Rs 2,21,60,73,256 and in the year 2003-04 Rs 4,11,91,93,748 i.e. 85.87% it is increased. The net working capital is very beneficial to company for the purpose of maintaining managing day-to- day activities of the kesoram cement company Ltd. Compare to the 2001-05 to 2004-06. It is increased Rs 4,11,91,93,748 i.e. 85.87%.It is most beneficial for the company

COMPARATIVE STATEMENT OF WORKING CAPITAL

FOR THE YEAR 2006-2007 Particular Current Assets a) Inventories c) Cash & Bank Balance d) Other current assets e) Loans and Advances Total Current Assets (A) Current Liabilities (B) Working Capital (AB) (+) Provisions Net Working Capital Interpretation Interpretation of comparative working capital statement of Kesoram cement company Ltd between the years 2005-2006 to 2006-2007 In the year 2009-10 the closing stock 0% raw materials work in progress and finished goods in Kesoram cement was Rs 1,52,84,06,205 and the year 2004-06 the inventory is Rs 1,82,17,77,224 there is an increased in the stock balance by 16.10% i.e. Rs 29,33,71,019. The Average inventory for two years study period is Rs 1,67,50,91,715. In the year 2008-09 sundry debtors in Kesoram cement company ltd was Rs 1821777224 1528406205 -293371019 -376344854 61087649 -376975953 239031554 -746572623 -1372769002 613803621 114180607 499623014 -16.10 -19.63 24.32 -67.42 31.53 -14.06 -8.19 -16.65 26.35 -12.12 2006 2007 Absolute Change Change in %

b) Sundry Debtors 1911277269 1539980546 251092974 559090805 763136566 312180623 182114852 997119989

5306374838 4559802215 1620414304 1487645302 3685960534 3072156913 433233214 419193748 547413821 3619570734

1,53,99,80,546 and the year 2003-2004 Rs 19,11,27,72,269 So it was decreased in the sundry debtors by 19.63% i.e. Rs 37,63,44,854. Cash and bank balance have increased to Rs 6,10,87,549 and it is 2009-10 Rs 31,21,80,623 and it is increased from 2008-09 it is Rs 25,10,92,974. In the year 2008-09 the loans and advances of kesoram cement company Ltd was Rs 76,13,65,66 and in the year 2009-10 loans and advances of kesoram cement company Ltd is Rs 99,71,19,989 It is increased to Rs 23,90,31,554. The total current assets decreased from Rs 5,30,63,74,838 to Rs 4,55,98,02,215 i.e. Rs 74 65,72,623 (-14.06%) In the year of 2008-09 the current liabilities was Rs 1,62,04,14,304 and in the year of 2009-10 current liabilities are Rs 1,48,76,45,302. There is decrease by Rs 13,27,69,002 i.e. 8.19% this resulted too decrease in current liabilities. The working capital of Kesoram cements company Ltd is increased from Rs 3,68,59,60,534 to Rs 3,07,21,56,913 i.e. Rs 61,38,03,621 (16.65%). In the year 2008-09 the net working capital was Rs 4,11,91,93,748 and in the year 2009-10 Rs 3,61,95,70,734.This means that the net working capital is decreased to Rs 49,96,23,014 i.e. 12.12% Compare to the 2008-09 to 2009-10 the total networking is decreased Rs 49,96,23,014 it is not satisfactory.

COMPARATIVE STATEMENT OF WORKING CAPITAL

FOR THE YEAR 2007-2008 Particular Current Assets a) Inventories c) Cash & Bank Balance d) Other current assets e) Loans and Advances Total Current Assets (A) Current Liabilities (B) Working Capital (AB) (+) Provisions Net Working Capital Interpretation Interpretation of comparative working capital statement of Kesoram cement company Ltd between the years 2006-2007 to 2007-2008 In the year 2008-09 the closing stock 0% raw materials work in progress and finished goods in Kesoram cement was Rs 1,97,03,49,211 and the year 2009-10 the inventory is Rs 1,52,84,06,205 there is an increased in the stock balance by 28.91% i.e. Rs 44,19,43,006. The Average inventory for two years study period is Rs 1,74,43,77,708. In the year 2009-10 sundry debtors in Kesoram cement company ltd were Rs 1528406205 1970349211 441943006 -4349337 -113508949 81103592 65343353 470531665 286211351 184320314 91465465 275785779 28.91% -0.28% -36.36% 44.53% 6.55% 10.31% 19.23% 5.99% 16.70% 7.61% 2007 2008 Absolute Change Change in %

b) Sundry Debtors 1539980546 1535631209 312180623 182114852 997119989 198671674 263218444 106263342

4559802215 5030333880 1487645302 1773856653 3072156913 3256477227 547413821 638879286

3619570734 3895356513

1,53,99,80,546 and the year 2007-2008 Rs 1,53,56,31,209 So it was decreased in the sundry debtors by 0.28% i.e. Rs 43,49,337. Cash and bank balance have been decreased in the year 2008-09 36.36% i.e. Rs 11,35,08,949 Other Current assets of the year 2009-10 Rs 18,21,14,852 and it are increased in the year 2008-09.The increased amount is Rs 8,11,03,592 i.e. 44.53% In the year 2009-10 the loans and advances of kesoram Cement Company Ltd was Rs 99,71,19,989 and in the year 2008-09 loans and advances of kesoram cement company Ltd is it is increased to Rs 6,3,43,353 i.e. 6.55%. The total current assets increased from Rs 4,55,98,02,215 to Rs 5,03,03,33,880. In the year of 2009-10 the current liabilities was Rs 1,48,76,45,302 and in the year of 2008-09 current liabilities are Rs 1,77,38,56,653 There is increase by Rs 28,62,11,351 i.e. 19.23% this resulted too increase in current liabilities. The Net working capital of Kesoram cement company Ltd is increased from Rs 3,61,95,70,734 to Rs 3,89,53,56,513 i.e. Rs 27,57,85,779 i.e. 7.61%. Compare to the 2009-10 to 2008-09 the net working capital is very beneficial to company for the purpose of maintaining (or) managing the day today activities of Kesoram cement Ltd. COMPARATIVE STATEMENT OF WORKING CAPITAL FOR THE YEAR 2008-2009 Particular Current Assets 2008 2009 Absolute Change Change in %

a) Inventories c) Cash & Bank Balance d) Other current assets e) Loans and Advances Total Current Assets (A) Current Liabilities (B) Working Capital (AB) (+) Provisions Net Working Capital Interpretation

1970349211 2030662246

60313035 472312494 44856279 -44041700 -168625943 364814165 -320096829 684910994 55450555 740361549

3.06% 30.75% 22.57% -16.73% -15.87% 7.25% 7.25% 21.03% 8.67% 19.06%

b) Sundry Debtors 1535631209 2007943703 198671674 263218444 106263342 243527953 219176744 893837399

5030333880 5395148045 1773856653 1453759824 3256477227 3941388221 638879286 694329841

3895356513 4635718062

Interpretation of comparative working capital statement of Kesoram cement company Ltd between the years 2007-2008 to 2008-2009 In the year 2009-10 the closing stock 0% raw materials work in progress and finished goods in Kesoram cement was Rs 2,03,06,62,246 and the year 2008-09 the inventory is Rs 1,97,03,49,211 there is an increased in the stock balance by 3.06% i.e. Rs 6,03,130,35. The Average inventory for two years study period is Rs 2,00,05,05,729. In the year 2009-10 sundry debtors in Kesoram cement company ltd were Rs 2,00,79,43,703 and the year 2007-2008 Rs 1,53,56,31,209 So it was increase in the sundry debtors by 30.75% i.e. Rs 47,23,12,494. Cash and bank balance have been decreased to Rs 4,48,56,279 and other current assets have been decreased to Rs 4,40,41,700 in the year 2008-09 the loans and

advance of Kesoram cement Ltd was Rs 1,06,24,63,342 and in the year 2009-10 the loans and advance of Kesoram cement Ltd was Rs 89,38,37,399 it has decreased by 15.87% i.e. Rs 10,86,25,943. The total current assets were increased Rs 5,03,03,33,880 to Rs 5,39,51,48,045. In the year of 2008-09 the current liabilities was Rs 1,77,38,56,653 and in the year of 2009-10 the current liabilities are Rs 1,45,37,59,824, so there was decreased by Rs 32,00,96,829 i.e. 18.04%. The working capital of the loans and advance of Kesoram cement Ltd in the year 2009-10 was Rs 3,94,13,88,221 and in the year 2008-09 Rs 3,25,64,77,227, so there was an increased Rs 68,49,10,994 this was happened due to the increased total current assets in the present financial year 2009-10. Provisions of Kesoram Cement Ltd., in the year 2008-09 was Rs 6,94,33,29,841 and in the year 2008-09 was Rs 63,88,79,286 by this we can identify that the provisions has been increased by Rs 5,54,50,555 i.e. 8.67% in the financial year 2009-10. In the year 2009-10 the Net working capital of Kesoram cement company Ltd was Rs 4,63,57,18,062 and in the year 2009-10 the net working capital was Rs 3,89,53,56,513 so there was an increased the net working capital by 19.06% i.e. Rs 74,03,61,549. COMPARATIVE STATEMENT OF WORKING CAPITAL FOR THE YEAR 2009-10 Particular Current Assets a) Inventories 2030662246 3768827777 1738165531 46.11% 2009 2010 Absolute Change Change in %

b) Sundry Debtors 2007943703 2459452581 c) Cash & Bank Balance d) Other current assets e) Loans and Advances Total Current Assets (A) Current Liabilities (B) Working Capital (AB) (+) Provisions Net Working Capital 243527953 219176744 893837399 272422341 118199412 2062247261

451508878 28894388 100977322 1168409862 3286001327 814532261 2471469066 662719380 3134188446

18.36% 10.60% -85.42% 56.65% 37.85% 35.91% 38.54% 48.83% 40.33%

5395148045 8681149372 1453759824 2268292085 3941388221 6412857287 694329841 1357049231

4635718062 7769906508

Interpretation Interpretation of comparative working capital statement of Kesoram cement company Ltd between the years 2008-2009 to 2009-2010. In the year 2008-09 the closing stock 0% raw materials work in progress and finished goods in Kesoram cement was Rs 3,76,88,27,777 and the year 2009-10 the inventory is 2,03,06,62,246 there is an increased in the stock balance by 46.11% i.e. Rs 1,73,81,65,531. The Average inventory for two years study period is Rs 2,89,97,45,012. In the year 2008-09 sundry debtors in Kesoram cement company ltd was Rs 2,45,94,52,581 and the year 2008-2009 Rs 2,00,79,43,703 So it was increase in the sundry debtors by 18.36% i.e. Rs 45,15,08,878. Cash and bank balance have been decreased to Rs 2,88,94,388 and other current assets have been decreased to Rs 10,09,77,322. In the year 2008-09 the loans

and advance of Kesoram cement Ltd was Rs 2,06,22,47,261 and in the year 2009-10 the loans and advance of Kesoram cement Ltd was Rs 89,38,37,399 it has decreased by 56.65% i.e. Rs 1,16,84,09,862. The total current assets were increased Rs 5,39,51,48,045 to Rs 8,68,11,49,372 In the year of 2009-10 the current liabilities was Rs 1,45,37,59,824and in the year of 2008-09 the current liabilities are Rs 2,26,82,92,085, so there was increase by Rs 81,45,32,261 i.e. 35.91%. The working capital of Kesoram cement Ltd in the year 2008-09 was Rs. 6,41,28,57,287 and in the year 2009-10 Rs 3,94,13,88,221, so there was an increased Rs 2,47,14,69.066 this was happened due to the increased total current assets in the present financial year 2008-09. Provisions of Kesoram Cement Ltd.,In the year 2008-09 was Rs 1,35,70,49,221 and in the year 2009-10 was Rs 69,43,29,841 by this we can identify that the provisions has been increased by Rs 66,27,19,380 i.e. 48.83% in the financial year 2008-09.

In the year 2008-09 the Net working capital of Kesoram cement company Ltd was Rs 7,76,99,06,508 and in the year 2009-10 the net working capital was 4,63,57,18,062 so there was an increased the net working capital by 40.33% i.e. 3,13,41,88,446. Increasing net working capital was very beneficial to the company for the purpose of maintaining (or) managing the day today activities of Kesoram cement Ltd.

COMPARATIVE STATEMENT OF WORKING CAPITAL FOR THE YEAR 2010-2011 Particular Current Assets a) Inventories b) Sundry Debtors 3768827777 2459452581 4421701810 2730735205 652874033 271282624 14.77% 9.93% 2010 2011 Absolute Change Change in %

c) Cash & Bank Balance d) Other current assets e) Loans and Advances Total Current Assets (A) Current Liabilities (B) Working Capital (AB) (+) Provisions Net Working Capital Interpretation

272422341 118199412 2062247261 8681149372 2268292085 6412857287 1357049231 7769906508

405421333 214691785 4290179191 1206272932 4 3030323592 9032405732 3303927056 1233633278 8

132998992 96492373 2227931930 3381579952 762031507 2619548445 1946877825 4566426280

32.81% 44.94% 51.93% 28.03% 25.15% 29.00% 58.93% 37.02%

Interpretation of comparative working capital statement of Kesoram cement company Ltd between the years 2009-2010 to 2010-2011 In the year 2009-10 the closing stock 0% raw materials work in progress and finished goods in Kesoram cement was Rs 4,42,17,01,810 and the year 2008-09 the inventory is Rs 3,76,88,27,777 there is an increased in the stock balance by 14.77% i.e. Rs 65,28,74,033. The Average inventory for two years study period is Rs 4,09,52,64,794.

In the year 2009-10 sundry debtors in Kesoram cement company ltd were Rs 2,73,07,35,205 and the year 2007-2008 Rs 2,45,94,52,581 so it was increase in the sundry debtors by 9.93% i.e. Rs 27,12,82,624. Cash and bank balance have been increased to Rs 13,29,98,992 and other current assets have been increased to Rs 9,64,92,373. In the year 2009-10 the

loans and advance of Kesoram cement Ltd was Rs 4,29,01,79,191 and in the year 2008-09 the loans and advance of Kesoram cement Ltd was Rs 2,06,22,47,261 it has increased by 51.93% i.e. Rs 2,22,79,31,930. The total current assets were increased Rs 3,38,15,79,952 to Rs 12,06,27,29,324. In the year of 2008-09 the current liabilities was Rs. Rs 2,26,82,92,085 and in the year of 2009-10 the current liabilities are Rs 3,03,03,23,592 so there was increase by Rs. 76,20,31,507 i.e. 25.15%. The working capital of Kesoram cement Ltd in the year 2009-10 was Rs 9,03,24,05,732 and in the year 2009-10 was Rs 6,41,28,57,287, so there was an increased Rs. 2,61,95,48,445 this was happened due to the increased total current assets in the present financial year 2010-11 Provisions of Kesoram Cement Ltd., in the year 2010-11 was Rs 3,30,39,27,056 and in the year 2008-09 was Rs 1,35,70,49,221by this we can identify that the provisions has been increased by Rs 1,94,68,77,825 i.e. 58.93% in the financial year 2009-10.

In the year 2009-10 the Net working capital of Kesoram cement company Ltd was Rs 12,33,63,32,788 and in the year 2009-010 the net working capital was 7,76,99,06,508 so there was an increased the net working capital by 37.02% i.e. 4,56,64,26,280. Increasing net working capital was very beneficial to the company for the purpose of maintaining (or) managing the day today activities of Kesoram

cement Ltd.

RATIO ANALYSIS: A ratio is a simple mathematical expression. It is number expressed in terms of another number, expressing the quantitative relationship between the two Ratio analysis is the technique of interpretation of financial statements with help of various meaningful rations. Ratios do not add any information that is already available, but they show the relationship between two items in a more meaningful way. They help us to draw certain conclusion. Comparison with

related facts in the basis of ratio analysis. Ratio may be used for comparison in any of the following ways. 1) Comparison of a firm with its own performance in the past 2) Comparison of one firm with another firm in the industry. 3) Comparison of one firm with the industry as a whole. 4) Comparison of an achieved performance with pre-determined standards. 5) Comparison of one department of a concern with other departments.

TYPES OF RATIOS: Several ratios calculated from the accounting data can be grouped into various classes according to the financial activity function to be valuated. The parties which generally interested in financial analysis are short and long term creditors owners and management short term creditors are mainly interested in liquidity or short term solvency of the firm.

Liquidity Ratio: It is externally essential for a firm to the table to meet its obligation as they become due. Liquidity ratios measure the ability of the firm to meet its current obligations. In fact analysis of liquidity needs its current obligations. In fact analysis of liquidity need the preparation of cash budgets and cash and funds flow statements but liquidity ratio by establishing a relationship between cash and other assets to current obligation provide quick measure of liquidity. A firm

should ensure that it does not suffer from lack of liquidity. And also that is not too much highly liquid. The failure of a company to meet its obligations, due to lack of sufficient liquidity will result in bad credit image loss of creditors of the company. A very high degree of liquidity is also bad ideal assets earn current assets. Therefore it is necessary to strike a proper balance between liquidity and lack of liquidity. The most common ratio which indicated the extent of liquidity or lack of it is: a) Current Ratio b) Quick Ratio

CURRENT RATIO: The current ratio is calculated by dividing current assets and current liabilities. Current Ratio: current assets/ current liabilities. Current assets include cash and those assets, which can be converted into cash with in a one year. Such as marketable securities, debtors and inventories prepaid expenses are also include in current assets as they representing the payments that will have not to make by the firm in the near future. All obligations maturing with in one year included in current liabilities. Thus current liabilities include creditors, bills payable, accrued expenses shortterm loans income tax liability and long term debts maturing in the current year. The ratio is a measure of the firms short-term solvency. It indicates the availability of current assets in rupees for every one rupee of current liability. A ratio greater than one means that the firm has more current assets than current claims again them.

3

2.5

Current ratio: Current ratio = Current assets/current liabilities2

Year 2006-2007 2007-2008 2008-2009

Current Assets 53063.74. 45598.02 50303.33 53951.48 86811.492007-08 2008-09 120627.29 current ratio

Current Liabilities 20536.47 20350.59 24127.35 21480.89 36253.412009-10 2010-11 63342.51

Ratio 2.58 2.24 2.08 2.51 2.39 1.90

1.5

1

0.5

2009-2010 2010-20112005-06 2006-07 2010-2011

0

Interpretation: 1) The current ratio shows fluctuating trend during the review period 2) The ideal ratio of current ratio is 2:1 but, this company had current ratios in each year more than the ideal ratio. 3) This indicates the company was not utilizing is current assets properly during the review period. 4) In 2003-2004 the current ratio was 3.04% this clearly indicates the positive utilization of funds. 5) During the review period 2004-2008 in all financial years the company made use of current assets efficiently.

QUICK RATIO-: The ratio establishes a relationship between quick of liquid and current liabilities. Assets liquids if it can be converted into cash immediately or reasonably soon with a loss of cash value. Other assets, which are considered to be relatively liquid and include in fixed assets, are books debts means debtors and bills receivables and marketable securities which are temporary quoted once. Inventories normally require some time for realizing into cash their values also tendency to fluctuate. The quick ratio is found out by dividing the total of the quick assets by total current liabilities.

Quick ratio = quick assets/current liabilities Year 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2010-2011 Quick Assets 20770.11 38345.97 30313.96 30109.82 33644.85 76410.28 Current Liabilities 9475.20 20536.47 20350.59 24127.35 21480.89 30303.24 1.69 1.48 1.24 1.56 2.52 Ratio 2.19

3 2.5 2 1.5 1 0.5 0 2006-07 2007-06 2007-08 2008-09 2009-10 2010-11

QUICK RATIO

Interpretation: 1) The quick ratio was showing fluctuating trend during review period. 2) The average quick ratio was found 1:21 times during 2003-04. Which is more than the ideal ratio of 1:1 which indicates the company invested more funds are created which may have good liquidity position but there is a cut in the profit of the company. 3) The above clearly indicates that the firm is highly liquid. LEVERAGE RATIO FIXED ASSETS TURNOVER RATIO: Fixed assets imply net fixed assets = Gross fixed assets-Depreciation A high fixed assets turn over ratio indicates better utilization of firms fixed assets. A ratio of around 5 is considered is ideal. This ratio establishes a relationship between net sales and fixed assets. The objective of computing this ratio is determining the efficiency with

which fixed asses are utilized. Components of this ratio is 1) Net Sales, which means gross sales minus sales returns. 2) Net Fixed (operating ) assets, which mean gross fixed assets minus depreciation theorem

Computation of this ratio is This ratio is computed by dividing the net sales by the fixed assets. This is usually expressed as X number of terms. In the form of formula, ratio may be expressed as under. Fixed assets turn over ratio = net sales/net fixed assets It indicates the firms ability to generate sales per rupee of investment in fixed assets. In general, the ratio, the more efficient the management and utilization of fixed assets, and vice versa. FIXED ASSETS TURN OVER RATIO Fixed assets turn over ratio = net sales/net fixed assets Ratio 2.21 2.14 2.35

Year 2005-2006 2006-2007 2007-2008

Sales ( In Lakhs) 134479.03 134440.3 138917.83

Net fixed assets 60794.08 62647.10 59008.51

3 2.5 2 1.5 1 0.5 0 2005-06 2006-07 2007-08 2008-07 2009-10 2010-11

2008-2009 2009-2010 2010-2011

156572.14 251645.89 344032.16

56993.09 110519.01 171883.45

2.74 2.27 2.00

FIXED ASSETS TURNOVER RATIO

Interpretation 1) The fixed assets turn over ratio was showing the fluctuating trend during the review period. 2) The fixed assets turn over ratio is high in the year 2009-10 compare to all given financial year all these ratios are less then 3 but the deal ideal fixed assets turn over ratio is 5 3) A high fixed turn over ratio includes better utilization of the firm fixed assets 4) The firm fixed asset turn over ratio has to increase, these it is desirable.

PROFITABLITIY RATIO NET PROFIT RATIO:

14 12 10 8 6 4 2 0

It indicates that the result of overall operation of the firm. While the gross profit ratio indicates the extent of profitability of core operations, net profit ratio tells us about overall profitability. The ratio means the relationship between net profit and net sales the main objective of computing this ratio is to determine the overall profitability due to2005-06

various factors such as operational efficiency, trading on equity etc.NET BPROFIT RATIO

2006-07

2007-08

2008-09

2009-10

2010-11

The components if these ratios are net profits and sales. The ratio is computed by dividing the net profit by the net sales. Net profit ratio = Net profit /sales NET PROFIT RATIO-: Net profit ratio = net profit/net sales Ratio 11.94 9.32 5.49 6.63 7.51 12.83

Year 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

Net profit 8027.80 12541.56 7441.66 9298.54 11850.44 38335.04

Net sales 67214.21 134543.30 135375.20 140116.20 157648.40 298792.21

Interpretation 1) The above ratio shows fluctuating trend during the review period. 2) In the year 200-2010 the profit was 12.83% by this we can find that the highest profit earning financial year is 2010-11 compare to the given financial year 3) I n the net profit ratio increases the company performance is good and the profit will be increased. 4) The above ratio is satisfactory for all given financial years.

SOLVENCY RATIO DEBT AND EQUITY RATIO: The ratio establishes a relationship between long term debts and shareholder funds. It reflects the relative claim of creditors and share holders against the assets of the business. Debt usually refers to long-term liabilities. Equity includes equity and preference share capital and reserves .Long-term debt, which means longterm loans. Shareholders funds, which mean equity share capital plus preference share capital plus reserves and surplus minus fictitious assets. This ratio is compared by dividing the long-term debts by the shareholders

0.6 0.5 0.4 0.3 0.2 0.1 0 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

funds. This ratio is usually expressed as proportions, 2:1 it indicates the margin of safety to long-term creditors. A low-debt ratio implies the use of more equity than debt, which means a larger safety margins for creditors treat owners as a margin of safety. DEBT AND EQUITY RATIO Debit-equity ratio = Long-term debts/shareholder funds.

DEBIT ERQUITY RATIO

DEBIT-EQUITY RATIO= LONG TERM DEBIT /SHARE HOLDER FUNDS Ratio 0.28 0.52 0.45 0.45 0.57 0.40

Year 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

Long-term debts 9917.06 19112.77 15399.8 15356.31 20079.43 24594.52

Share holder funds 34869.39 36491.77 33881.86 33878.40 34848.27 60869.28

Interpretation 1) The above ratio was shown little fluctuating trend during review period 2) The ideal debt-equity ratio is 2:1 the firms seemed to pay a little amount to the creditors because the firm debit-equity ratios are very less than the ideal debt equity ratio any year. 3) The low debt equity implies that there us a less risk to the creditors and have sufficient safety margin. 4) The company is maintaining a good level of long-term loans. DEBTORS TURN OVER RATIO: A concern may sell goods and cash as well as on credit basis. Credit is one of the important elements of sales promotion. Debtors turnover ratio =net credit sales/average trade debtors Average trade debtors 1451491494 1725628907 1537805877 1771787456 2233698142 7.79 8.80 7.90 7.05

Year 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Net Credit Sales 67214.21 134543.30 135375.20 140116.20 157648.40

Ratio 4.63

9 8 7 6 5 4 3 2 1 0 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

2010-2011

298792.21

2595093893

0.00115

debtors turnover ratio

INTERPRETATION: Debtors turnover ratio is very low in the year 2010-11. Due to lack of credit sales, there by less sales and low profits. In the year 2008-09 implies efficient management of debtors sales and liquid debtors. It indicates lowest performance in the year 2010-11.

80 70 60 50 40 30 20 10 0 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 This ratio is used to find out how quickly the debtors are being converted into

DEBTORS COLLECTION PERIOD

cash. Normally debtors collection period ratio this ratio should be high. Debtors collection period=365 days/debtors turnover ratio. Debtors turnover ratio 4.63 7.79 8.80 7.90 7.05 0.00115 46.98 41.47 46.20 51.77 0.00

Year 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

Days 365 366 365 365 365 366

Ratio 78.83

INTERPRETATION: The average collection period should be short. The shorter this period the better it is as a short collection period implies quick payment by the debtors. A very high collection period in the year 2009-10 at 78.83 implies an inefficient collection performance which in term adversely affects the liquidity or short-term paying capacity of a firm out of its current liabilities. A very low collection period may imply a firms conservative policy to sell on credit on its inability of losing sales and profits. NET WORKING CAPITAL: It is the difference between current assets and current liabilities net working capital indicates the liquidity position of firm and suggests the extent to which working capital needs may financial by permanent source of funds. Formula: NET WORKING CAPITAL= current assets current liabilities Net working Year 2005-2006 Current Assets 53063.74. Current Liabilities 20536.47 capital 32527.27

60000

50000

40000

2006-2007 2007-2008 2008-2009

45598.02 50303.33 53951.48 86811.49 120627.292007-08 2008-09

20350.59 24127.35 21480.89 36253.41 63342.512009-10 2010-11

25247.43 26175.98 32470.59 50558.08 57284.78

30000

20000

2009-2010 2010-20112005-06 2006-07

10000

0

net working capiatl

INTERPRETATION: Increase in net working capital shows liquidity position of firm is good. In the year 2004-05 the company net working capital was decreased. Net working capital was increased year by year from2004-05 to 2009-10. It showing that company liquidity position is increasing.

WORKING CAPITAL TURNOVER RATIO: This ratio shows the number of times working capital is turned over in a stated period. The higher ratio in the investment in working capital and greater is the profits. A very high turnover is a high of over trading and may put concern into financial difficulties Working capital turnover ratio indicates the velocity of the utilization of net working capital. This ratio indicates the number of times the working capital is turned over in the course of a year. This ratio measures the efficiency with which the working capital is being used by a firm. A higher ratio indicates efficient utilization of working capital and a low ratio indicates otherwise. But a very high working capital turnover ratio is not a good sign for any firm and hence care must be taken while interpreting the ratio. This ratio can at best be used by making of comparative and trend analysis for different firms in the same industry and for various periods. This ratio can be calculated as: Formula: Working capital turnover ratio= sales/net working capital Net working capital 32527.27 25247.43 26175.98 32470.59 50558.08 57284.78 Working capital turnover ratio 2.0663 5.3289 5.1717 4.3151 3.1181 5.2159

Year 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

Net Credit Sales 67214.21 134543.30 135375.20 140116.20 157648.40 298792.21

6

5

4

3

2

1

0 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

working capital turnover ratio

INTERPRITATION: It is observed that the margin of operating income is decreased from 2005-08. In comparison with net working capital.

In the year 2010-11 the working capital ratio has increased when compared with previous years though the present results are s satisfactory, the same lead to adverse position in the long run, if the same situation continues.

1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 2005-06

CURRENT ASSETS TO FIXED ASSETS RATIO This ratio differs from industry to industry and therefore no standard can be laid. A decrease in the may mean that trading in stock or more mechanism has been put through. Debtors have unduly increased or fixed have been intensively used. An increase in the accompanied by an increase in the profit indicates that business is expanding.2006-07 2007-08 2008-09 2009-10 2010-11

Current Assets CURRENT ASSETS TO assets Current assets to fixedFIXED ASSETS TURNOVER RATIO Ratio: --------------------------------Fixed assets Ratio 0.87 0.72 0.85 0.94 0.78 0.70

Year 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2010-2011

Current Assets 53063.74. 45598.02 50303.33 53951.48 86811.49 120627.29

Fixed assets 60794.08 62647.10 59008.51 56993.09 110519.01 171883.45

INTERPRETATION: 5) The fixed assets turn over ratio was showing the fluctuating trend during the review period. 6) The fixed assets turn over ratio is high in the year 2009-10 compare to all given financial year all these ratios are less then 1 but the deal ideal fixed assets turn over ratio is 5 7) A high fixed turn over ratio includes better utilization of the firm fixed assets 8) The firm fixed asset turn over ratio has to increase, these it is desirable.

V

FINDINGS

CONCLUSIONS AND FINDINGS It is clear from the study net working capital of Kesoram cement 2004-2010.The net working capital of the company recorded 85.87% in the year 2004-05. Again in the year of 2005-06 net working capital was decreased 12.12% again it is increased 7.61% in the year of 2006-07.And in the year 2007-08 it is recorded 19.06% & in the year 2008-09 it is recorded 40.33% Finally in the year 2010-2011 it was recorded 37.02. It is observed from the study the current of the Kesoram cement from 2004-2010. Current assets of the company recorded in the year of 2005-2006 i.e. 84.43%. In the year 2006-2007 it is decreased to 14.06%.Again it is decreased 10.31% in the tear 2007-2008.IN the year 2008-2009 it is recorded 7.25%. In the year 2009-2010 it is recorded 37.85%. In the year 2010-2011 it is recorded 28.03%.

It is understood from the study the current liabilities of Kesoram cement during the year 2004-2010. In the year 2005-2006 it is recorded 101.47% in the year of 2006-2007 it is declined 8.19% in the year 2007-2008 it is reached 19.23% again in the year 2008-2009 it is decreasing 18.04% , in the year 2009-2010 it is increased by 35.91% and in the year 2010-2011 it is decreased by 25.15% It is clear the study ratio is satisfactory as it is more than the thumb rule 2.1.

It is concluded the quick ratio is above the standard rule and this concludes it as satisfactory. Fixed assets turn over ratio indicates the extent to which assets are utilized to maximize the sales. The company has managed fixed assets efficiently. Net profit ratio we can describe that the company net profit is very sound. It is concluded that the gross profit is satisfactory. The debt-equity ratio proportion as per equality concerned is less the low equity that there is less risk to the creditors and they have sufficient safety margin.

CHAPTER-VI SUGGESTIONS

SUGGESTIONS It is suggested that the company has to maintain sufficient inventory and which should be on par with the working capital requirement for strengthen it. It is clear from the study liquidity position was increased which has satisfactory the company has to maintain the same in future. It is observed from the study that employ can more debt to take the advantage of leverage. A high fixed turn over ratio indicates better utilization of the firms fixed assets. A ratio of around 5 is considered ideal. It is clears from the study the net profit ratio over all profitability. The higher the ratio the more profitable is the business. It is observed from the study the company has to decrease its direct expenses to improve its net profit. The company has to utilize its current assets efficiently only its maintaining as smooth liquid position.

CHAPTER-VIII BIBILOGRAPHY

BIBILOGRAPHY Authors Name I.M.Pandey Prasanna Chandra R.K.Sharma and Shashi K.Gupta S.P.Jain & K.L.Narang Title of the Book, Publisher and Edition Financial Management, Vikas Publisher 8th Edition Financial Management, Tata McGraw Hill 5th Edition Management Accounting, Kalyani Publishers, 8th Edition Financial Accounting and Analysis, Kalyani Publishers, 3rd Edition

Websites: www.kesoramcements.com www.birlaindustries.com www.cementindustry.com