Ratio Analysis and Working Capital Management of Manikgarh Cements

A PROJECT REPORT
ON
“Ratio Analysis & Working Capital
Management”
FOR
MANIKGARH CEMENT
(A DIVISION OF CENTURY TEXTILES & INDUSTRIES LTD)
Submitted By
RUPESH K. HATNAPURE
Dr. Ambedkar Business School,

Nagpur
Maharashtra
PGDM (Sem-II)
Under The Guidance Of
Mr. D.K.DAK Sir

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A PROJECT REPORT ON
“Ratio Analysis & Working Capital

Management”
FOR
MANIKGARH CEMENT
A Project Report Submitted in Partial Fulfillment of the

requirements for the
“Post Graduate Diploma in Management (2009-11)”
Submitted By
RUPESH HATNAPURE
PGDM (Sem-II)
Under The Guidance Of
Mr.D.K.DAK
Submitted To
Dr.Ambedkar Business School,
Nagpur
Maharashtra
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CERTIFICATE
This is to certify that the internship project titled
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
Is a bonafide work of ________________________________________________

Enrollment No.__________________________of Dr. Ambedkar Business School NAGPUR.
Is original and has been made under my supervision in partial fulfillment of the
requirement for the award of PGDM for the period of two months from 15 th May 2010
to 15th July 2010.This report neither in part nor in full has been submitted for awarding
of degree of either this University or any other University. I am pleased to say that his
performance during this period was _________________________________.
DIRECTOR
Dr. Ambedkar Business School
NAGPUR 85
MANIKGARH CEMENT
CERTIFICATE
This is to certify that Mr.RUPESH KHEMRAJ HATNAPURE of

Dr.Ambedkar Business School Nagpur underwent job training at our
company from 15th May 2010 to 15th July 2010.The student also
carried out the project titled “study of ratio analysis for Manikgarh
cements Ltd and its comparison with Birla & Binani Cements,as well
as working capital for Manikgarh Cements Unit of century textiles
Pvt Ltd”.during this period under guidance of our company
executive. During the course of his internship we found that the
student’s performance was good.
We wish the student a bright and prosperous future.
D. K. Dak S.K.Bhandari
(General Manager) (Sr. Manager Finance)
Place: Gadchandur
Date:
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CERTIFICATE
This is to certify that Mr. Rupesh Khemraj Hatnapure was a summer trainee at
our organizations for a period of two months from 15th May 2010 to 15th July
2010.His project entitled to “To study Ratio Analysis and working capital
for Manikgarh cements Unit of century textiles Pvt Ltd” was done under
my guidance .He is found to be_____________________________________________
We wish him best luck.
Seal of the company
Signature of the Company Guide
Name of company Guide.
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NO DUES CERTIFICATE
This is to certify that Mr. Rupesh Khemraj Hatnapure of
Dr. Ambedkar Business School, Nagpur has no dues pending
With the company.
Seal of the company
Signature of the company guide
Name of the company guide.
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I, undersigned Mr. Rupesh Hatnapure, hereby declare that the project report
entitled “RATIO ANALYSIS & WORKING CAPITAL MANAGEMENT” under the
guidance of Mr. D.K.DAK sir submitted in partial fulfillment of the requirements
for the award of the degree of Post Graduation in Diploma in Management
to Dr.Ambedkar Business School, Nagpur is my original work – research
study – Carried out during 15th May 2010 to 15th July 2010 and not submitted
for the award of any other degree/diploma/fellowship or other similar titles or
prizes to any other institution/organization or university by any other person.
Place:Nagpur
Date:
(Rupesh Khemraj Hatnapure)
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“Practice makes more perfect”
In the field of management every time there is a requirement of understanding

or practical aspect of the organization with managerial mind. There is
requirement to go for practical training of any subject supplement to the
theoretical knowledge and clarified concept.
It is more applicable in the field of the management especially a professional

course like PGDM Moreover Ambedkar Business School, Nagpur has prescribed
two month project report training during the II Sem. as a part of PGDM
programmes my training at the MANIKGARH Cement is to comply with this
requirements also.
The project report includes various ratio of the company and comparison with its
previous year results and analysis on Working Capital Of Company, which
provide perfect direction of invest the money. The data collections were by
annual report of the different companies, magazines related to the cement
association and discussion with concerned employees and experts.
At the end findings and suggestions are reported.
I hope this serves the Purpose. 85

Words are indeed inadequate to convey my deep sense of gratitude to all
those who have helped me in completing this summer project to the best of my
ability. Being a part of this project has certainly been a unique and a very
productive experience on my part.
I am really thankful to Mr. S.K. Bhandari sir for making all kinds of
arrangements to carry the project successfully and for guiding and helping me
to solve all kinds of quarries regarding the project work. His systematic way of
working and incomparable guidance has inspired the pace of the project to a
great extent.
I would also like to thank my mentor and project – coordinator, for

assigning me a project of such a great learning experience and acquainting me
with real life project financing and appraisal.
This project would not have been successful without the help of General
Manager (Human Resource Department) of MANIKGARH CEMENTS
Last but not least I would like to thank all the Employees of MANIKGARH
CEMENTS Ltd. who have directly or indirectly helped me with their moral
support for the completion of my project.
RUPESH HATNAPURE
(PGDM 2009-11)
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CH.NO PARTICULARS PAGEN
. O
1 INTRODUCTION OF CEMENT INDUSTRY 2-13
 Current Scenario in India 4
 Growth in Production & Consumption 5
 Top Ten Players in Cement Industry 7
 Scenario of Demand & Supply 9
 Manufacturing Process of Cement 11
2 INTRODUCTION OF MANIKGARH 14-25
CEMENTS
 History & Company profile 15
 Corporate Social Responsibility 19
 Awards & Achievements 25
3 COMMODITY (CEMENT) PROFILE 26-30
4 RESEARCH METHODOLOGY 31-32
5 ANALYSIS 33-67
 Ratios of the Company 34
 Comparison with other Industries 34
 Working Capital Requirement 54
6 CONCLUSION 68-73
 Conclusion 69
 Major findings 70
 Swot 72
7 BIBLIOGRAPHY 74-76 85
INTRODUCTION
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The cement industry is experiencing a boom on account of the overall growth of
the Indian economy. The demand for cement, being a derived demand, depends
primarily on the industrial activity, real estate business, construction activity,
and investment in the infrastructure sector. India is experiencing growth on all
these fronts and hence the cement market is flourishing like never before.
Indian cement industry is globally competitive because the industry has
witnessed healthy trends such as cost control and continuous technology up
gradation. Global rating agency, Fitch Ratings, has commented that cement
demand in India is expected to grow at 10% annually in the medium term
buoyed by housing, infrastructure and corporate capital expenditures.
The constraints faced by the industry are reviewed in the Infrastructure

Coordination Committee meetings held in the Cabinet Secretariat under the
Chairmanship of Secretary (Coordination). Its performance is also reviewed by
the Cabinet Committee on Infrastructure. Fast rising Government Expenditure
on Infrastructure sector in India has resulted a higher demand of cement in the
country. In the same direction, participation of larger companies in the sector
has increased.
After having gone through a period of over-supply and the phase of massive
capacity additions (latter half of the previous decade), the industry is currently
in a consolidation phase, with capacity additions coming up to cater to the
increasing demand. Demand has been driven by a booming housing sector and
increased activity in infrastructure development such as state and national
highways. While the demand is growing at a robust pace of 8% to 10% annually,
the paucity of major capacity additions is putting upward pressure on the
cement prices. The top four companies account for almost 40% of the total
domestic capacity, while the remaining is distributed among the large and mini
plants in the industry.
CURRENT SCENARIO
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The Indian cement industry is the second largest producer of quality cement,
which meets global standards. The cement industry comprises 130 large cement
plants and more than 300 mini cement plants. The industry's capacity at the
end of the year reached 188.97 million tons which was 166.73 million tons at
the end of the year 2006-07. Cement production during April to March 2007-08
was 168.31 million tons as compared to 155.66 million tons during the same
period for the year 2006-07.Despatches were 167.67 million tons during April to
March 2007- 08 whereas 155.26 during the same period. During April-March
2007-08, cement export was 3.65 million tons as compared to 5.89 during the
same period.
Cement industry in India is currently going through a consolidation phase. Some

examples of consolidation in the Indian cement industry are: Gujarat Ambuja
taking a stake of 14 per cent in ACC, and taking over DLF Cements and Modi
Cement; ACC taking over IDCOL; India Cement taking over Raasi Cement and Sri
Vishnu Cement; and Grasim's acquisition of the cement business of L&T, Indian
Rayon's cement division, and Sri Dig Vijay Cements. Foreign cement companies
are also picking up stakes in large Indian cement companies. Swiss cement
major Holcim has picked up 14.8 per cent of the promoters' stake in Gujarat
Ambuja Cements (GACL). Holcim's acquisition has led to the emergence of two
major groups in the Indian cement industry, the Holcim-ACC-Gujarat Ambuja
Cements combine and the Aditya Birla group through Grasim Industries and
Ultratech Cement. Lafarge, the French cement major has acquired the cement
plants of Raymond and Tisco. Italy based Italcementi has acquired a stake in the
K.K. Birla promoted Zuari Industries' cement plant in Andhra Pradesh, and
German cement company Heidelberg Cement has entered into an equal joint-
venture agreement with S P Lohia Group controlled Indo-Rama Cement.
(Mn.Ton
Cement .)
Mar- Feb Mar- 2008-
Particulars 10 -10 09 2009-10 09
168.3
Production 16.3 14.73 14.9 1 155.6
Despatches(Includin 167.6
g Export) 16.4 14.79 15.1 7 155.2
Export 0.32 0.21 0.45 3.65 5.89
Closing Stocks 1.07 1.15 0.85
Capacity Utilization
(%) 104 98 108 96 94
During March 2010, Cement production was 16.39 Mn.T, registering a growth of
9.34% as compared to 14.99 Mn.T in March 09.
Cement Despatches were 16.42 Mn.T in March 10, showing a growth of 8.53%
as compared to 15.13Mn.T in March 09
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Clinker (Mn.Ton.)
Mar- Feb- Mar-
Particulars 10 10 09 2009-10 2008-09
11.8 11.1
Production 8 10.83 9 129.69 121.75
Sales 0.41 0.29 0.27 3.01 2.35
0.
Export 0.21 2 0.19 2.37 3.11
Transfer 1.55 1.42 1.45 16.16 15.58
Cl.Stcoks 5.47 6.09 4.41
During March 08, Cement Export was 0.32 Mn.T a decline of 28.89% from 0.45
Mn.T in March 07, whereas Clinker Export showed a growth of 10.53% (from
0.19 Mn.T. in March 09 to 0.21 in March 10)
GROWTH IN CEMENT PRODUCTION 2009-10 (Apr-Mar)
This Graphical represenation shows that overall growth in cement production in

inidia is 8% in 2000-10. but if we are distributing in different region then it
shows 14%,8%,8%,5%,4% to North,East,South,West,Centre respectively.In
North,higest growth is 14% and least growth in centre region which is only 4%.
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GROWTH IN CEMENT CONSUMPTION 2009-10 (Apr- Mar)
This Graphical represenataion shows that overall growth in cement consumption

in india is 10%. But if we are distributing in different region then it shows
12%,6%,10%,15%,6% to North,East,South,West,Centre repectively. In West side
of country is higest gorwth in consumption which is 15%.
REGIONWISE CEMENT PRODUCTION 2009-10 (Apr- Mar)
This graphical represenation shows that south region of the country which is
highest production 32%.
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REGIONWISE CEMENT PRODUCTION 2009-10 (Apr- Mar)
This graphical represenation shows that south region of the country which is
highest consumption 30%.
CAPACITYWISE TOP TEN PLAYERS FOR YEAR 2009-2010
(Figures in Mn. Tones)
COMPANY CAPACITY
HOLCIM / ACC / AMBUJA 38.21
GRASIM / ULTRA TECH CEMENT 36.25
JAYPEE GROUP. 9.93
THE INDIAN CEMENTS LTD. 9.64
SHREE CEMENT 9.10
CENTURY TEXTILES & 7.80

INDUSTRIES LTD.
BIRLA CORPORATION LTD. 5.78
MADRAS CEMENTS LTD. 5.47
LAFARGE INDIA PRIVATE LTD. 5.15
JK CEMENT 4.30
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With an installed capacity of around 157 million tons per annum (mtpa) at end-
March 2006, large cement plants accounted for 93% of the total installed
capacity in India. The installed capacity is distributed over across approximately
129 large cement plants owned by around 54 companies. The structure of the
industry is fragmented, although, the concentration at the top is increasing. The
fragmented structure is a result of the low entry barriers in the post decontrol
period and the ready availability of technology. However, cement plants are
capital intensive and require a capital investment of over Rs. 3,500 per tonne of
cement, which translates into an investment of Rs. 3,500 million for a 1 mtpa
plant.
BIG PLAYERS: CEMENT INDUSTRY IN INDIA

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From the above chart we can see that
 ACC contributed 11.8% to the sector

 L&T 11.3%
 Grasim 9.6%
 Gujarat Ambuja 7.6%
 India Cement 6.9%
 Madras 3.3%
And other’s 49.5% to the sector. So, ACC being the sector leader contributing
a major part of supplies.
SCENARIO OF DEMAND AND SUPPLY

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Dat Productio Consumptio Capacit Exces
e n (% n (% y s
change) change) utilizati suppl
on (%) y (%)
Jan-09 5.2 10.8 102.4 1.0
Feb-09 (0.9) 5.4 101.2 0.1
Mar- 11.2 (0.3) 104.1 1.8
09
Apr-09 (8.3) 10.7 91.9 (1.1)
May- (0.9) (9.8) 89.1 0.4
09
Jun-09 (1.5) 2.0 86.5 (0.2)
Jul-09 (0.1) (1.3) 86.4 0.0
Aug- (10.2) (2.5) 77.3 (1.1)
09
Sep- 5.6 (9.5) 81.6 1.0
09
Oct-09 6.2 4.9 86.3 1.2
Nov- (2.9) 3.1 83.3 0.4
09
Dec- 10.3 0.9 91.7 1.7
09
Jan-10 2.0 11.0 93.4 0.5
The table above highlights the fact that consumption of cement has not taken
back seat and industry is growing and has been operating at the near
equilibrium levels. Supply has fallen short only for last monsoon which is usually
a slack period for this industry. It is clearly can be noted from the above data
the production in Jan (09) 5.2% and in Dec (09) production increased to 10.3
% and consumption in Jan(09) 10.8% and in Dec(09) 0.9% and in Jan(10)
increased to 11.0% and the supplies in Jan(10) become 0.5% in excess which is
a indicator that cement industry has a signficant growth over the year .
The demand drivers for the cement sector continue to be housing, infrastructure
and commercial construction, etc. We expect the proportion of infrastructure in
total demand to improve further in future, as the thrust on infrastructure
development is on the rise. During April-November 2009, cement demand grew
by 10 per cent year-on-year (y-o-y) propelled by the growth witnessed in end
user segments such as housing, infrastructure etc. CRISIL Research expects
demand to remain strong and grow by over 12 per cent in the next 2 years.
Cement demand is expected to outstrip supply for the next year and a half as no
major capacities are coming on-stream, thus providing enough flexibility to
cement manufacturers to further hike the prices.
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Today, cement from Andhra is going all over India, including Assam, Meghalaya,
Jharkhand, Orissa, West Bengal, Chhattisgarh, Gujarat and Maharashtra. More
cement is likely to flow into Tamil Nadu from the state in view of cut in sales tax.
Any further increase in demand in the South India will benefit the cement
industry here. Cement movement from Gujarat to Mumbai is also coming down
due to exports while cement movement from Orissa into Andhra has stopped
and, in fact, cement is flowing into Orissa as well.
Earlier in 2006-07, the housing sector alone consumed 65 per cent of the total
domestic consumption. With the launch of several infrastructure projects, the
housing consumption may come down to 55 per cent as the infrastructure and
other sectors are expected to move up to 45 per cent from the present 35 per
cent. Still, the main sector of consumption continues to be housing, including
commercial space, occupying more than 60 per cent. The current demand in the
state for 2005-06 is expected to cross 15 million
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MANUFACTURING PROCESS OF CEMENTS
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PROCEDURE
The main raw materials used in the cement manufacturing process are
limestone, sand, shale, clay, and iron ore. The main material, limestone, is
usually mined on site while the other minor materials may be mined either on
site or in nearby quarries. Another source of raw materials is industrial by-
products. The use of by-product materials to replace natural raw materials is a
key element in achieving sustainable development.
Raw Material Preparation
Mining of limestone requires the use of drilling and blasting techniques. The
blasting techniques use the latest technology to insure vibration, dust, and noise
emissions are kept at a minimum. Blasting produces materials in a wide range
of sizes from approximately 1.5 meters in diameter to small particles less than a
few millimeters in diameter.
Material is loaded at the blasting face into trucks for transportation to the
crushing plant. Through a series of crushers and screens, the limestone is
reduced to a size less than 100 mm and stored until required.
Depending on size, the minor materials (sand, shale, clay, and iron ore) may or
may not be crushed before being stored in separate areas until required.
Raw Grinding
In the wet process, each raw material is proportioned to meet a desired

chemical composition and fed to a rotating ball mill with water. The raw
materials are ground to a size where the majority of the materials are less than
75 microns. Materials exiting the mill are called "slurry" and have flow ability
characteristics. This slurry is pumped to blending tanks and homogenized to
insure the chemical composition of the slurry is correct. Following the
homogenization process, the slurry is stored in tanks until required.
In the dry process, each raw material is proportioned to meet a desired chemical
composition and fed to either a rotating ball mill or vertical roller mill. The raw
materials are dried with waste process gases and ground to a size where the
majority of the materials are less than 75 microns. The dry materials exiting
either type of mill are called "kiln feed". The kiln feed is pneumatically blended
to insure the chemical composition of the kiln feed is well homogenized and
then stored in
silos until required.
Pyroprocessing
Whether the process is wet or dry, the same chemical reactions take place.
Basic chemical reactions are: evaporating all moisture, calcimine the limestone
to produce free calcium oxide, and reacting the calcium oxide with the minor
materials (sand, shale, clay, and iron). This results in a final black, nodular
product known as "clinker" which has the desired hydraulic properties. In the
wet process, the slurry is fed to a rotary kiln, which can be from 3.0 m to 5.0 m
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in diameter and from 120.0 m to 165.0 m in length. The rotary kiln is made of
steel
and lined with special refractory materials to protect it from the high process
temperatures. Process temperatures can reach as high as 1450oC during the
clinker making process.
In the dry process, kiln feed is fed to a preheater tower, which can be as high as
150.0 meters. Material from the preheater tower is discharged to a rotary kiln
with can have the same diameter as a wet process kiln but the length is much
shorter at approximately 45.0 m. The preheater tower and rotary kiln are made
of steel and lined with special refractory materials to protect it from the high
process temperatures. Regardless of the process, the rotary kiln is fired with an
intense flame, produced by burning coal, coke, oil, gas or waste fuels. Preheater
towers can be equipped with firing as well.
The rotary kiln discharges the red-hot clinker under the intense flame into a
clinker cooler. The clinker cooler recovers heat from the clinker and returns the
heat to the pyroprocessing system thus reducing fuel consumption and
improving energy efficiency. Clinker leaving the clinker cooler is at a
temperature conducive to being handled on standard conveying equipment.
Finish Grinding and Distribution
The black, nodular clinker is stored on site in silos or clinker domes until needed
for cement production. Clinker, gypsum, and other process additions are ground
together in ball mills to form the final cement products. Fineness of the final
products, amount of gypsum added, and the amount of process additions added
are all varied to develop a desired performance in each of the final cement
products.
Each cement product is stored in an individual bulk silo until needed by the
customer. Bulk cement can be distributed in bulk by truck, rail, or water
depending on the customer's needs. Cement can also be packaged with or
without color addition and distributed by truck or rail.
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INTRODUCTION OF MANIKGARH CEMENTS
HISTORY OF COMPANY
Manikgarh Cement is a division of Century Textiles and Industries Ltd, a flagship

company of B K Birla Group. The company is well diversified having interest in
cement, textiles, rayon, chemicals, pulp and paper.
Manikgarh Cement is situated at Gadchandur, Dist. Chandrapur in the State of

Maharashtra with an installed capacity of 1.50 Million TPA. Apart from this,
company has two more cement plants namely Century Cement at Baikunth,
Dist. Raipur in the State of Chhattisgarh with an installed capacity of 1.80 Million
TPA and Maihar Cement at Sarlanagar, Dist. Satna, in the State of Madhya
Pradesh with an installed capacity of 3.50 Million TPA. The combined Capacity of
all cement plants taken altogether is 6.80 Million TPA. More emphasis is given
for production of blended cement which constitutes about 95% of the total
cement produced by the company.
The capacity enhancement to 7.80 Million TPA is under implementation by

carrying out modification, up gradation and debottlenecking of existing plant &
machinery and equipments, which is likely to be completed by October -
December 207 Quarter. All cement plants are equipped with captive power
plants, which not only ensure an uninterrupted power supply, but also help
company substantially on power cost, as the own generated power is quite
economical as compared to grid power.
The company sells its cement under various premium brands - Birla Gold, Birla
Faulad, Century Classic, Century Gold, Manikgarh Gold & Manikgarh Cement.
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B.K.BIRLA
Chairman
Century Textiles & Industries Limited
Message
"We are committed to provide a best quality cement at the most economical
rate to our society which gives us love, affection & everlasting emotional
attachment & this is the reason that our head is always high."
"I believe that the Fortunes of Century Textiles & Industries Limited
rest solely on its continuing ability to evolve and successfully
implement new techniques and systems to anticipate future trends and
zero in on to them, to be in short, a company that is plugged into
tomorrow.."
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MISSION & VISION
Our Vision - The 3T
Tradition
Manikgarh Cement is a division of Century Textiles & Industries Ltd., belonging
to the BK Birla Group of Companies, a leading Business House with its presence
in Core Industries like Textiles, Rayons, Chemicals, Paper & Pulp and Cement,
which has been at the vanguard in generating wealth for the Nation. Our
heritage of being a part of this group carries with it a commitment to quality. All
our Products meet the most stringent and exacting standards of our growing list
of loyal customers who are engaged in building Modern India.
Technology
Our Group's Core Value of Quality has built for us an invincible reputation and
for this, the finest technology was sourced from world renowned manufacturers
and state-of-the art equipment installed for energy efficient and pollution free
large scale cement production. The presence of superior technology is also
evinced in our various quality initiatives which have fetched for us the coveted
ISO-9001:2000, an International Certification for "Quality Management
System". We have also got the ISO-140001 Certification for "Environmental
Management System" which amply reflects our commitment to the
environment.
Trust
Our Customer is the focal point for all our Endeavour’s and what we value most
is their trust in us, whether that be in the aspect of reliability of supply or in the
aspect of quality assurance. An extensive distribution network and a retail chain
of thousands of outlets stretching across the length and breadth of regions, play
a vital role in taking our cement units closer to the customer's doorsteps.
Further, our efficient and responsive technical staff excel in providing quick and
expert care so as to enable thousands of users to keep smiling and ever wanting
our products.
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MISSION
 To achieve international standards of excellence in all aspect of division and

diversified business with focus on customer delight through value of product,
Services, cost and reduction.
 To maximize creation for wealth and satisfaction for the stakeholder.
 To foster a culture of participation and innovation of employee growth and

contribution.
 To cultivate high standards of business ethics and total Quality Management.
 To attain leadership in developing, adopting and assimilating state-of-art

technology for competitive advantage.
 Offered full opportunities and challenges to develop individually enabling

career growth.
 Encouraged to acquire knowledge to meet the challenges of new

technologies and business needs in the changing scenario.
 Educated and guided to inculcate and practice right values as are nurtured
by the organization.
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CORPORATE SOCIAL RESPONSIBILITY
Vocational Training
Imbibed with the philosophy & spirit of the great philanthropist Late Syt GD
Birlaji, Manikgarh Cement has always been in the forefront for social service &
humanitarian cause. In order to provide self-employment to youth, vocational
training is imparted in the trades of tailoring and cutting, electrical &
electronics, diesel and motor mechanists and motor winding. Every year
proficiency Certificates are awarded to students on completion of successful
training. Vocational Training provided to youth contributes towards solving
unemployment problem of the country.
SCHOOL BUILDING FOR EDUCATION OF CHILDREN FOR NEIGHBOURINHG

AREAS
Healthcare Services
We run Seva Trust Hospital with all modern treatment facilities for the
employees, their families & the neighbouring community. We also conduct
health camps periodicaly such as free Eye Camp, Immunization Camp, Family
Planning Camp, Medical Checkup Camps, Naturopathy Camp etc, as also Public
Health Care Camps to educate villagers of nearby areas about the nuance of
hygene & healthy living.
Number of Camps organised during 2008-09
Health Camps 30
Blindness Control Program 10
Health & Dental Check up in School 9
Other Health Camps 4
Pulse Polio, Family planning etc 18
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Rural Development Services
1. Provision of clean drinking water to the nearby villages.

2. Conduct of Krishi Mela for the villagers with a view to impart knowledge about
irrigation, sale & purchase of food grains, tested seeds, fertilizers, agricultural
equipments, pesticides etc for greater yield of their efforts & profitability, as also
to disseminate information regarding Bank loans etc towards making them
financialy sound.
3. Provide Fire Fighting Facility
Environmental Management System
Right from inception, great emphasis has been laid at Manikgarh Cement on
maintaining ecological balance and environmental preservation so as to
provide green, healthy and pollution free environment. Continuous monitoring
of various Pollution Control equipments are done round the clock to maintain
emission levels much below the norms specified by State Pollution Control
Board.
Environment Policy
We at Manikgarh Cement are fully conscious of the envionmental impacts of our

activities. We also realise the need for minimising the impacts, towards
preservation of environment in keeping with the image of BK Birla Group of
companies as a socially responsibile organisation.
We, therefore, commit ourselves to:
 Prevention of pollution incidental to Plant operations

 Adopting clean technology and eco-friendly processes in the Plant
 Compliance with all applicable legal and statutory requirements
 Conservation of natural resources
 Reduction in waste generation.
 Awareness amongst employees and business associates.
 Continual improvement in environmental performance by effective
implementation
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The plant has been accredited with IS / ISO 14001:1996 Environmental
Management System Certification.
Totally Dust-free Chimneys
Measures Taken Towards a Cleaner Environment
 Installation of highly efficient Pollution Control Equipments viz., ESPs, Bag

Houses and Pulse Jet Dust Collectors at every dust generating point in the Plant.
 Regular monitoring of all stacks and ambient air quality.
 Proper treatment of domestic affluent generated from residential colony in
Oxidation Ponds and use of treated water for plantation purposes.
 Massive efforts for plantation of various species of trees for ecological up-
gradation.
To control fugitive emission, following additional steps have been taken:
 Covering of Conveyor belts transporting various process materials

 All raw materials are stored in covered gantry.
 Water sprinklers have been provided on the roads to check fugitive emission
generated due to movement of vehicles
 Concretisation of roads and floors inside the Plant
 The Fly Ash generated from Thermal Power Plant is used as an additive for
manufacture of PPC.
 The Plant maintains perfect harmony with environment through effective
pollution control measures in respect of air, water, land and noise level. All
efforts are made to curb pollution at grass root level.
85
TREES ARE TREATED OUR BEST FRIEND
Every year tree plantation is undertaken in a planned manner on a massive

scale. As a result the barren land acquired by the Company looks like green land
today with different varieties of trees, gardens, lawns, fountains, flora and
fauna. The plant presents a wonderful balance between concrete and ecology
with smokeless chimneys and lush greenery all around. Number of Trees
surviving as on date is 316000.
Clean Development Mechanism
Cement Industry is highly energy intensive and leads to generation of CO2

during clinkerisation process due to calcination of limestone and combustion of
fossil fuel inside the Kiln. CO2 is a Green House Gas (GHG) which leads to
global warming and depletion of ozone layer above earth's atomosphere causing
health hazard for all living beings. Manikgarh Cement is actively engaged in
reduction of GHG emissions and has undertaken CDM projects. The project
activities consist of an increase in % addition of flyash in Portland Pozzolana
Cement (PPC) as well as an increase in the proportion of PPC in the over all
product mix. This leads to reduction in usage of clinker in cement production
which in turn contributes to reduction in GHG emissions.
At Manikgarh Cement, proportion of Blended Cement has been gradually

enhanced over the last few years. The project activity contributes to sustainable
development at Regional, National and Global levels in the following ways.
Reduction of GHG emissions - by way of reduction in clinker usage in

cement production as explained above;
Industrial Waste Utilisation - Fly Ash Handling and disposal not only
involves extra cost for Thermal Power Plant (TPP) but also leads to land and air
pollution as well as water contamination at fly ash ponds / land fills. Hence the
project indirectly helps TPP in cost reduction and pollution abatement. It also
leads to reduction in specific energy consumption for cement manufacture and
positively contributes to conservation of coal which is a valuable renewable
natural resource.
Reduced usage of clinker in cement manufacture also means reduction in

mining / extraction of limestone and its associated fugitive dust emission, loss of
bio-diversity etc.Therefore the CDM project related activity has excellent
environmental benefits in terms of reduction of carbon emissions, conservation
of natural resources like limestone and coal, decreased environmental
degradation and enhanced waste utilisation.
85
Energy Conservation
All out efforts are made at every level to achieve the highest level of efficiency
in managing and conserving energy resources. This includes involvement of
both financial and human resources coupled with technological upgradation
.Following measures have been taken at Manikgarh Cement for conservation of
electrical and thermal energy:
 Upgradation of Kilns by installation of LP cyclones and upgradation of

preheated section and CIS MFR system on Clinker Grate Cooler;
 Close circuiting of Raw Mills and Cement Mills by installation of High
efficiency Classifiers;
 Installation of pregrinder in conjunction with close circuit Cement Mills for
capacity upgradation and reduction of specific power consumption;
 Replacement of pneumatic conveying system of Raw meal and cement by
Mechanical handling system
 Incorporation of VVVF drives;
 Replacement of low efficiency fan impellers by high efficiency Impellers;
 Optimisation of Raw Mills and Cement Mills by upgradation of internals and
grinding media charge;
 Dry Fly Ash storage and handling system has been installed at Cement Mill.
 Installation of high efficiency dyamic separators for Coal Mills in place of
static Grit separators for power saving and better residue control
 Process automation with DCS and Fuzzy logic control
Safety and Health Management
This is an integral part of organisation's core policy of Quality, Productivity and

Customer delight. The policy stipulates Management for planning activities in a
responsible manner so as to avoid castle any risk to Health and Safety of its
employees.
Safety Commitment
 To provide safe working conditions;

 To make appropriate personal protective equipment available to all
employees and ensure their proper use;
 Identifying and minimising injury and health hazard by effective risk control
measures;
 Continually improving health and safety performance by regularly setting and
reviewing objectives and targets;
 Promoting awareness of safe working practices and arranging adequate
training of employees;
 Complying with all applicable legislations and regulations;
85
Other major facilities/activities:
 A well equipped Hospital with qualified medical staff.

 Provision of appropriate fire fighting equipments at all strategic points in the
factory.
 Fire fighting demonstrations and fire drills are conducted at regular intervals.
 Well established procedures have been framed at the Plant for identification
of hazards, assessment of risks and implementation of necessary control
measures.
 On-site emergency plan duly approved by Director, Industrial Health and
Safety has been established at each Plant
85
AWARDS
Manikgarh Cement has been bestowed upon several awards both at the
National as well as Regional Levels:
National Awards
 National Safety Awards for Percentage Reduction in Injury Rate by Ministry

of Labour, Govt of India in 1991.
 National Safety Awards for Longest Accident Free Period by Ministry of
Labour, Govt of India in 1993, 1996 & 1997.
 Gem Granite Environment Award for outstanding contribution towards
Preservation and Protection of Environment, Inculcating Eco-Friendly working in
the Mining Operations by FIMI for the year 1996-97.
 National Productity Award for the year 1996-97 by Ministry of Industry, Govt
of India.
 Viswakarma Rashtriya Puraskar by Ministry of Labour, Govt of India in 1993,
1996.
 National Award for Best Improvement in Energy Performance for the year
1996-97 by NCBM.
 National Award for Best Improvement in Electrical Energy Performance for
the year 1996-97 by NCBM.
State Awards
 State Safety Award for Longest Accident Free Period in 1992, 1995, 1996 by
National Safety Council (Maharashtra Chapter).
 Maharashtra Rajya Vanashree Award in recognition of efforts made in
Afforestation for Maintaining Ecological Balance and Social Awareness.
 IBM Awards for Mines Environment & Mineral Conservation for the year 1997,
1998, 1999
85
COMMODITY
PROFILE
Cement: - Cement is often confused with concrete. Cement is finely ground,
usually gray colored mineral powder, when mixed with water ,cement acts as
glue to bind together the sand, gravel and crushed stone to form concrete ,the
most widely used in construction material in the world.
85
Types of cement
The Plants manufacture varieties of cement, including Ordinary Portland Cement

(OPC), 43 &53 grades, fly ash-based Portland Pozzolona Cement (PPC), Portland
Slag Cement (PSC) and low –alkali Portland cement. Recently, the company has
started producing Sulphate Resistant cement (SRC) and it has been well
accepted in the market.
The Cement is marketed under the brand names of Birla Cement SAMART, Birla
Cement KHAJURAHO, Birla CHETAK, Birla Cement and Birla Premium cement,
bringing the product under the common brand of Birla Cement while retaining
the niche identity of SAMART for blended cement, i.e. PPC & PSC, for all the
units, KHAJURAHO (for the OPC product of Satna) and CHETAK (for the OPC
product of Chanderia).
The Division exports large quantities of cement to Nepal, under the brand
names of SAMART and KHAJURAHO. BIRLA CEMENT SAMRAT is ideal for mass
concrete RCC/ pre stressed/precast structures (for reduced thermal crack),
increased water tightness of concrete, increased resistance to sulphate soils and
aggressive water, increased resistance to alkali aggregate reaction, besides
corrosion and resistance properties.
Different types of cement that are produced in India are:
• Ordinary Portland cement (OPC):

OPC, popularly known as grey cement, has 95 per cent clinker and 5 per cent
gypsum and other materials. It accounts for 70 per cent of the total
consumption.
• Portland Pozzolana Cement (PPC):

PPC has 80 per cent clinker, 15 per cent pozzolana and 5 per cent gypsum and
accounts for 18 per cent of the total cement consumption. It is manufactured
because it uses fly ash/burnt clay/coal waste as the main ingredient.
• White Cement:
White cement is basically OPC - clinker using fuel oil (instead of coal) with iron
oxide content below 0.4 per cent to ensure whiteness. A special cooling
technique is used in its production. It is used to enhance aesthetic value in tiles
and flooring. White cement is much more expensive than grey cement.
• Portland Blast Furnace Slag Cement (PBFSC):
PBFSC consists of 45 per cent clinker, 50 per cent blast furnace slag and 5 per
cent gypsum and accounts for 10 per cent of the total cement consumed. It has
a heat of hydration even lower than PPC and is generally used in the
construction of dams and similar massive constructions.
• Specialized Cement:
Oil Well Cement is made from clinker with special additives to prevent any
porosity.
85
• Rapid Hardening Portland cement:
Rapid Hardening Portland Cement is similar to OPC, except that it is ground
much finer, so that on casting, the compressible strength increases rapidly.
• Water Proof Cement:

Water Proof Cement is similar to OPC, with a small portion of calcium stearate or
non- saponifibale oil to impart waterproofing properties.
Portland Pozzolona Cement: -
It is known as strongest cement for strong and durable structures. In Durgapur

Hi-tech plant at Durgapur produces Birla Cement Samrat, using high quality
clinker, high-quality fly ash from modern power plants and gypsum. This
Portland Pozzolana Cement (PPC) brand has all the advantages of 53-Grade
Cement.
Portland cement:-
Portland cement is a blend of finely pulverized clinker, produced by burning at

high temperature materials containing lime, alumina, iron and silica in pre-
determined proportion to give the desired end properties. Normally, Gypsum or
its derivatives are added during grinding stage for set control. When mixed with
water alone or in combination with sand and stone, it has the property of
combining slowly with water to form hard mass.
85
Raw Materials used in the manufacture of Portland cement:-
The two principal raw materials used in the manufacture of Portland Cement are
calcareous material such as limestone, chalk, shells or marl and argillaceous
materials such as clay and shale (rich in silica).
Portland Cement manufacturing process:-
The raw materials, i.e. calcareous and argillaceous with correctives are finely
ground and intimately blended and fired in a rotary kiln at high temperature of
1450-15000C. The material which emerges from kiln is called Clinker. The
clinker is cooled and ground to fine power along with small quantity of gypsum
(4-5%) to give Portland cement.
Pozzolona:
Pozzolona are amorphous alliaceous and aluminous materials which by itself

have no cementations properties but in presence of Calcium Hydroxide liberated
by hydration of is cooled and ground to fine power along with small quantity of
gypsum (4-5%) to give Portland Cement. OPC reacts chemically with it at
ordinary temperatures to form compounds possessing cementations properties.
Slag:
Slag is a non-metallic product consisting essentially of gases containing

silicates, aluminosilicaten of lime and other bases and is obtained as a
byproduct with iron in blast furnace or electric pig iron furnace.
Granulated slag is used in the manufacture of Portland Slag Cement.
Uses of Slag Cement:
Slag Cement can be used for all plain and reinforced concrete construction,
mass concreting structures such as dams, reservoirs, swimming pools, river
embankment, canal piers, etc. where low heat of hydration and resistance to
alkali silica reaction are desired, structure in aggressive environments where
chemical and mildly acidic water are encountered (where OPC cannot used),
marine construction, dykes, wharves, etc. where sulphatic water is present.
Special features:-
Higher Compressive Strength

Low Water Absorption
Increased Workability
Low Shrinkage
Sulphate Resistance
Desired durability
85
Standard requirement of various Raw Materials
Particular Standard requirement
OPC
Clinker - Limestone 92-93%
- Iron Ore 02-03%
- Gypsum 05%
PPC
Clinker 70%
Gypsum 05%
Fly ash 25%
85
RESEARCH MRTHODOLOGY
For Every Comprehensive research a proper research methodology is
indispenensable & it has to be properly conceived. The methodology adopted by
me is as follows:-
Research Design
Problem Identification
85
@ Find out Ratios of Manikgarh cements and compare with Birla and Binani
cements
@ Find deviation of calculated ratios from standard or Norms
@ Calculating the working capital requirement of Manikgarh cements.
Information needed
@ Information about firm’s assets, liabilities, revenue, expenditure, bankers,
investment etc.
@ Information about firm’s loan, security, stock level & other financial
information.
Data Collection
My data collection source was secondary i.e.

@ Annual reports of companies
@ Balance sheet
@ Profit & Loss Accounts
Analysis & Interpretation
The data collected and analysed subjectively as well as graphically where it is

possible. The analysis is based upon available information & interpreted
accordingly.
Conclusion
On the basis of analysis conclusion has been drawn.
Suggestion
Suggestion has been given in order to improve performance of the firm.
Limitation
My scope of study is limited to the annual reports, Balance sheet of units &
number of companies taken for analysis.
85
RATIO ANALYSIS
Ratio: is the mathematical relationship between two quantities in the form of a
fraction or percentage.
Ratio analysis: is essentially concerned with the calculation of relationships

which after proper identification and interpretation may provide information
about the operations and state of affairs of a business enterprise.
85
The analysis is used to provide indicators of past performance in terms of critical
success factors of a business. This assistance in decision-making reduces
reliance on guesswork and intuition and establishes a basis for sound judgment.
Note: A ratio on its own has little or no meaning at all.
Significance of Using Ratios
The significance of a ratio can only truly be appreciated when:
1. It is compared with other ratios in the same set of financial statements.

2. It is compared with the same ratio in previous financial statements (trend
analysis).
3. It is compared with a standard of performance (industry average). Such a
standard may be either the ratio which represents the typical performance of
the trade or industry, or the ratio which represents the target set by
management as desirable for the business.
Ratios of Manikgarh cement
&
comparison with the Birla cement and Binani Cement
A) LIQUIDITY RATIO
1) CURRENT RATIO: The Current Ratio expresses the relationship between the
firm’s current assets and its current liabilities.
85
Formula: - Current Asset
Current Liability
2008 2009
Unit -09 -10
MANIKGARH 1.43 1.61
BINANI 1.2 1.16
BIRLA 1.18 1.13
1.5
1 2008-09
2009-10
0.5
0
MANIKGARH BIRLA BANANI
Comment:-
Ideal Ratio is 2:1 so,
In Manikgarh cements it is very close to the ideal one. It seen to be better

amongst all the three organizations.
2) QUICK RATIO: Measures assets that are quickly converted into cash and
they are compared with current liabilities.
Formula: -
Current Assets – Inventories–Loans& Advances
Current Liability – Bank Overdraft
2009 2008
Unit -10 -09
MANIKGARH 0.93 0.83
BINANI 0.23 0.22
BIRLA 0.14 0.1
85
1
0.8
0.6
2009-10
0.4
2008-09
0.2
0
M ANIKGARH BIRLA BAINAI
Comments:-
Ideal Ratio is 1:1

In Manikgarh cements Quick ratio is 0.83 & 0.93 in the year 2009-10 and 2008-
09 respectively which shows a very good ability of business to cover its short
term obligations in Birla Corporation, Quick Ratio is 0.14 and 0.10 in 2009-10
and 2008-09 respectively which shows the ability of the business to cover its
short-term obligations is not good. But in Binani Cement, it is quite good from
Birla cement .Ultimately the Manikgarh cements is in good position from other
two companies.
3) ABSOLUTE LIQUID RATIO:- It is used to measure how quickly the firm can
meet to its current obligations .
Formula: - absolute liquid assets

Current Liability
2009 2008
Unit -10 -09
MANIKGARH 0.22 0.2
BINANI 0.27 0.25
BIRLA 0.21 0.18
85
0.3
0.25
0.2
0.15 2009-10
0.1 2008-09
0.05
0
MANIKGARH BIRLA BINANI
Comments:-
Ideal Ratio is 1:2, so,

The absolute Liquid Ratio in birla corporations is quite better than the
manikgarh as well as Binani cements.while all the three firms is having the
satisfactory ratio as compared to the standards
B) LEVERAGE RATIOS
4) DEBT TO EQUITY RATIO: - This ratio indicates the extent to which debt is
covered by shareholders’ funds. It reflects the relative position of the equity
holders and the lenders and indicates the company’s policy on the mix of capital
funds.
Formula:- Long Term Debts

Shareholder’s Funds
85
2008 2009
Unit -09 -10
MANIKGARH 1.18 1.38
BIRLA 0.3 0.21
BINANI 0.7 0.65
1.4
1.2
1
0.8
2009-10
0.6
2008-09
0.4
0.2
0
Comment:-
In Manikgarh cements the ratio is very much closer to that of standard ratio of
Debt-Equity it is 1.38 in year 2010.In Birla Corporation,debt equity ratio is 0.3
and 0.21 to 2009 and 2010 respectively which shows extremly good in financial
position and company’s capital structuer is also strong.but in Binani cement, it is
high proportion of the debt which shows financial weekness of the company.but
the coamny was reduce their debt in next year
Ultimate Birla corporation is good financial strength compare to other two
companies.
5) SHAREHOLDERS EQUITY RATIO :- It shows the shareholders equity

proportions to the total assets. This ratio will supplement the debt-equity ratio.
Formula: - Shareholders Equity

Total Assets
2008 2009
Unit -09 -10
MANIKGARH 0.45 0.37
BIRLA 0.56 0.67
BINANI 0.23 0.34
85
0.7
0.6
0.5
0.4
2009-10
0.3
2008-09
0.2
0.1
0
Comments:
As it is assumed that larger the proportions of the shareholders equity, the
stronger is the financial position of the firm.As calculated the ratio is higher in
Birla corporations as compared to the Manikgarh cements and Binani, so it will
be having more stronger financial positions as compared to the other two firms.
6) CAPITAL GEARING RATIO:- An investment Ratio that compare the

borrowing made by a company with the finance contributed by the
shareholders.
Formula:- Preference Share + Long term Borrowings

Equity Share Capital + Reserve – Miss. Expenditure
2008 2009
Unit -09 -10
MANIKGARH 0.15 0.22
BIRLA 0.43 0.27
BINANI 2.29 1.84
85
2.5
1.5
2009-10
1
2008-09
0.5
0
Comments:
If this ratio is more then it would be risky for the company because if the sales
or revenue company’s is low still the company have to pay their intrest. So the
capital gearing ratio is good in the Manikgarh cements But it is quite high in
Birla Cor. In Binani Cement, It is very high from other two companies and
company have to focous on the Debt.
Ultimately Manikgarh cements is in very good postion in this Ratio.
7) PROPRIETARY RATIO:- It express the relationship between the

shareholders Net worth and total asset of the company.
Formula:- Shareholders Net Worth

Total Assets
Net worth = equity share capital + pref. share capital + reserves –fictitious
assets
Total assets = fixed assets + current assets - fictitious assets
2008 2009
Unit -09 -10
MANIKGARH 0.57 0.62
BIRLA 0.64 0.74
BINANI 0.24 0.24
0.8
0.6
0.4 2009-10
2008-09
0.2
0
Comment:-
In Manikgarh cements the ratios are 0.57 and 0.62 in 2008-09 & 2009-10
respectively.In Birla Corporation Propritor ratio is 0.64 in 2008-09 & 0.74 in2009-
85
10, It means the stake of the propritor in the total asset is good but in binani
cement, it is very low, In both the year it is 0.24 . Birla corporations is having a
good positions in proprietors point of view.
8) FIXED ASSET TO LONG TERM FUND RATIO: - it is used to show the

proportions of long term funds deployed in fixed assets.
Formula: - Fixed Assets

Long-term Funds
Long term funds = share capital + reserves & surplus + long term loans
2008 2009
Unit -09 -10
MANIKGARH 0.43 0.85
BIRLA 0.38 0.67
BINANI 0.57 0.81
0.8
0.6
2009-10
0.4 2008-09
0.2
0
Comments:-
the fixed assets to long term funds ratio in Manikgarh cements is very much
good as compared with the Birla corporations as well as the Binani cements. it
shows that in case of liquidations the funds available will be safer on that
particular firm.
9) INTEREST COVER:- It shows how many times interest charges are covered
by funds that are available for payments on interest.
Formula: - PBIDT
Interest
2008 2009
Unit -09 -10
MANIKGARH 1.42 1.70
BIRLA 1.54 1.84
BINANI 1.18 1.10
85
2
1.5
1 2009-10
2008-09
0.5
0
Comments: -
it is clearly seen that the interest ratio is quite good in Birla corporations as
compared to both the Manikgarh cements and Binani cements.
The very high ratio indicates that the firm is conservative in using Debt and vice
a versa. The interest cover of 2 times is considered reasonable.
10) PREFERENCE DIVIDENT COVERS: - This ratio indicates the number of

times the dividends are covered by net profit. This highlights the amount
retained by a company for financing of future operations.
Formula:- Net Profit After Tax

Pref.Divident
2008 2009
Unit -09 -10
MANIKGARH
BIRLA 3.43 3.33
BINANI 3.33 2.38
Comments:
This ratio is very difficult to calculate for the Manikgarh cements as it does not
provide any dividends, as it is a unit of century textiles and industries ltd so all
dividend has been provided by century itself .This ratio indicates the greater
assurance to preference shareholders in getting assured returns.
C) TURN OVER RATIOS
11) INVENTORY TURN OVER RATIO: This ratio measures the stock in relation
to turnover in order to determine how often the stock turns over in the business.
It indicates the efficiency of the firm in selling its product. It is calculated by
dividing the cost of goods sold by the average inventory.
Formula: - Cost of Goods Sold * 100

Average Stock
85
2008 2009
Unit -09 -10
MANIKGARH 7.28 9.12
BIRLA 7.57 6.17
BINANI 8.23 3.9
10
6
2009-10
4
2008-09
2
0
Comments:-
In Manikgarh Cement Stock Turnover ratio is 7.28 times in 2008-09 and it was
increased in the 2009-10 upto 9.12 times.In both Birla and Binani cement it is
good in 2008-09 but it drastically change in 2009-10 and it was not good for the
copmpany.The comany increse their turn over ration in next year.
Ulitimately Manikgarh cement is in good position compare to other two
copamnies.
12) DEBTORS TURN OVER RATIO :- It measures whether the amount of

resourses tied upin debtors is reasonable and whether the company has been
efficient I converting debtors into cash.
Formula:- Credit Sales

Avarage Debtors
2008 2009
Unit -09 -10
MANIKGARH 8.4 7.95
BIRLA 4.9 5.39
BINANI 2.35 1.2
85
10
6
2009-10
4
2008-09
2
0
Comments:-
The debtor’s turnover policy says higher the ratio better is the positions
13) CREDITORS TURN OVER RATIO:-It is the ratio to credit purchase to

average creditor. It is given as
Formula: - Credit purchases

Average creditors
2008 2009
Unit -09 -10
MANIKGARH 4.18 3.55
BIRLA 6.17 5.67
BINANI 2.23 2.12
7
6
5
4
2009-10
3
2008-09
2
1
0
14) FIXED ASSET TURN OVER RATIO :- This ratio will be analysed further
with ratios for each main category of assets. This is difficult set of ratios to
interpret as asset values are based on historic cost. An increase in the fixed
asset figure may results from the replacement of an increased price or the
purchase of additional asset.
Formula: -
Sales
Fixed Assets
Unit 2008 2009

85
-09 -10
MANIKGARH 3.60 3.86
BIRLA 3.46 3.56
BINANI 3.67 4.9
3
2009-10
2
2008-09
1
0
15) WORKING CAPITAL TURNOVER RATIO:-This ratio indicates the extent of

working capital turned over in achieving sales of the firm. Given as
Formula: - Sales
Working Capital
2008 2009
Unit -09 -10
MANIKGARH 11.76 17.02
BIRLA 12.13 19.07
BINANI 10.87 12.29
20
15
10 2009-10
2008-09
5
0
Comments:-
It shows how all the firms are utilizing their working capital in achieving the
desired sales. Birla corporations have shown the significant use of their working
capital in achievement of sale as compared to other firms.
16) SALES TO CAPITAL EMPLOYED:- This ratio ascertained by dividing sales

with capital employed. This ratio indicates, efficiency in utilisation of capital
employed in generating revenues.
Formula: - Sales
Capital Employed
85
2008 2009
Unit -09 -10
MANIKGARH 2.89 2.97
BIRLA 2.23 2.67
BINANI 2.87 2.9
3
2.5
2
1.5 2009-10
1 2008-09
0.5
0
Comments:-
In Manikgarh cements this ratio is nearly equal to Binani cements we can say
that they are using their employed capital in good ways to generate the
revenues.
17) TOTAL ASSET TURN OVER RATIO:- This ratio indicates the number of
times total assets are being turned over in a year.
The higher the ratio indicates the overtrading of the total assets, while a low
ratio indicates idle capacity.
Formula
2008 2009
Unit -09 -10
MANIKGARH 2.05 2.10
BIRLA 2.45 2.38
BINANI 2.21 2.14
85
2.5
2.4
2.3
2.2
2009-10
2.1
2008-09
2
1.9
1.8
D) PROFITABILITY RATIO
18) GROSS PROFITABILITY MARGIN:- It shows the relationship between

gross profit of the company and net sales of the company.This measures the
efficiency of the company’s operations and this can also be compared with
previous years results to ascertain the efficiency.
Formula:- Gross Profit Margin * 100

Net Sales
2008- 2009-
Unit 09 10
24.50 30.32
MANIKGARH % %
85
46.13 47.03
BIRLA % %
60.00 62.45
BINANI % %
70
60
50
40
2009-10
30
2008-09
20
10
0
Comments:-
In Manikgarh cements they have shown a good growth in their profit margins as
compared to the last year But still it is very low as compared to the Birla as well
as Binani group ,so they need to increase there sales part so as to earn good
profit margin.
19) NET PROFIT RATIO :- This is a widely used measure of performance and is
comparable across companies in similar industries. The fact that a business
works on a very low margin need not cause alarm because there are some
sectors in the industry that work on a basis of high turnover and low margins
Formula:- Net Profit * 100

Net Sales
2008- 2009-
Unit 09 10
32.61 26.82
MANIKGARH % %
20.82 22.81
BIRLA % %
14.06 17.96
BINANI % %
85
35
30
25
20
2009-10
15
2008-09
10
5
0
Comments:
This ratio focus on the net profit margin arising from the business operations
before interest and tax is deducted .This margins are increased in Birla as well
as Binani from their last year margins But the Manikgarh shows decline in their
margins.
20) RETURNS ON CAPITAL EMPLOYED :- It is the value of the assets that

contribute to a company’s ability to generate a revenue.The strategic aim of a
business enterprise is to earn a return on capital
Formula:- NPBT,Intrest & Pref.Dividend * 100

Capital Employed
Capital Employed = Fixed Assets + Current Assets – Current Liability
2008- 2009-
Unit 09 10
79.68 83.70
MANIKGARH % %
46.96 42.90
BIRLA % %
17.80 21.56
BINANI % %
100
80
60
2009-10
40 2008-09
20
0
Comments:-
In Manikgarh cements we have seen a significant rate of returns over capital

employed as compared to the other two firms though its present year rate is
slightly decline than that of previous year.
85
21) RETURNS ON INVESTMENTS: - Income is earned by using the assets of a
business productively. The more efficient the production, the more profitable
the business.
Formula:- After Tax Earning * 100

Total Assets
2008- 2009-
Unit 09 10
58.67 68.38
MANIKGARH % %
22.41 19.70
BIRLA % %
BINANI 7.62% 9.94%
70
60
50
40
2009-10
30
2008-09
20
10
0
Comments:
The significantly high rate of returns are shown by the Manikgarh cements as
compared with the rest two firms .It shows that the efficiency of utilisations of
assets in generating the revenue.
85
E) OPERATING RATIOS
22) SELLING AND DISTRIBUTIONS EXPENSES:- This Shows the relationship

between Selling & Distributions expenditure to net sales of the company.
Formula:- Selling & Distributions Expenditure * 100

Net Sales
2008- 2009-
Unit 09 10
MANIKGARH 21.06 19.72
12.73 12.41
BIRLA % %
23.91 23.67
BINANI % %
25
20
15
2009-10
10
2008-09
5
0
Comments: -
The selling & Distributions expenditure in all the three firms has been decreased
from its last real expenditure, which is good sign for them as they are controlling
their expenditure. In Birla corporations the expenditure is very low amongst the
three firms .So other two firm that is Manikgarh & Binani they need to control
there selling and distributions expenses in order to minimise the cost.
23) ADMINISTRATIONS EXPENSE: - This ratio is made up with two things

which is administrative expenditure of the company and net sales of the
company.
Formula: - Administrative Expenditure * 100

Net Sales
2008 2009
Unit -09 -10
4.86 4.63
MANIKGARH % %
3.00 2.94
BIRLA % %
2.66 2.73
BINANI % %
85
5
3
2009-10
2
2008-09
1
0
MANUKGARH BIRLA BINANI
24) NET OPERATING EXPENSES: - It express the relationship between

Operating Cost and net Sales of the Company.
Formula:- Operating Cost * 100

Net Sales
2008- 2009-
Unit 09 10
74.08 75.65
MANIKGARH % %
68.51 66.64
BIRLA % %
66.45 65.81
BINANI % %
80
75
70 2009-10
2008-09
65
60
Comment:-
The operating expenses of manikgarh cements is very high as copared to other
two firm so they need to minimise their operating expenses.the binani cements
has shown good rate of expense they are having lowest rate amongst all three
firm.
85
F) OTHER RATIOS
25) CASH PROFIT RATIO:- The cash profit ratio measure the cash generation
in the business as a result of the operations expressed in term of sales.
The cash profit ratio is more reliable indicator of performance where there sharp
fluctuations in the profit before tax and net profit from year to year owing to
difference in depreciations charged.
Formula: - Cash Profit * 100

Sales
Cash Profit = Net Profit + Depreciations
2008- 2009-
Unit 09 10
27.61
MANIKGARH % 33.02%
BIRLA 38.6% 37.4%
24..77
BINANI 23.6% %
40
30
20 2009-10
2008-09
10
0
Comments:-
When it comes to cash profit earning the rate of earning in Birla corporations is
very much higher as compared to the Manikgarh and Binani cements .They are
having a 37.4 % of cash profit rate in current year 2010.
85
WORKING CAPITAL MANAGEMENT
“Working capital means the part of the total assets of the business
that change from one form to another form in the ordinary course of
business operations.”
Concept of working capital:-
The word working capital is made of two words

1. Working and
2. Capital
The word working means day to day operation of the business, whereas the
word capital means monetary value of all assets of the business.
Working Capital: -
Working capital may be regarded as the life blood of business. Working capital is
of major importance to internal and external analysis because of its close
relationship with the current day-to-day operations of a business. Every business
needs funds for two purposes.
* Long term funds are required to create production facilities through purchase
of fixed assets such as plants, machineries, lands, buildings & etc
* Short term funds are required for the purchase of raw materials, payment of
wages, and other day-to-day expenses.
. It is otherwise known as revolving or circulating capital
It is nothing but the difference between current assets and current liabilities. i.e.
Working Capital = Current Asset – Current Liability.
Concept of working capital
• Gross Working Capital = Total of Current Asset

• Net Working Capital = Excess of Current Asset over Current Liability
85
Current Assets Current Liabilities
• Cash in hand / at • Bills Payable
bank • Sundry Creditors
• Bills Receivable • Outstanding
• Sundry Debtors expenses
• Short term loans • Accrued expenses
• Investors/ stock
• Temporary • Bank Over draft
investment
• Prepaid expenses
• Accrued incomes
Working capital in terms of five components:
1. Cash and equivalents: - This most liquid form of working capital requires
constant supervision. A good cash budgeting and forecasting system provides
answers to key questions such as: Is the cash level adequate to meet current
expenses as they come due? What is the timing relationship between cash
inflow and outflow? When will peak cash needs occur? When and how much
bank borrowing will be needed to meet any cash shortfalls? When will
repayment be expected and will the cash flow cover it?
2. Accounts receivable: - Many businesses extend credit to their customers. If

you do, is the amount of accounts receivable reasonable relative to sales? How
rapidly are receivables being collected? Which customers are slow to pay and
what should be done about them?
3. Inventory: - Inventory is often as much as 50 percent of a firm's current

assets, so naturally it requires continual scrutiny. Is the inventory level
reasonable compared with sales and the nature of? our business? What's the
rate of inventory turnover compared with other companies in your type of
business?
4. Accounts payable:- Financing by suppliers is common in small business; it

is one of the major sources of funds for entrepreneurs. Is the amount of money
85
owed suppliers reasonable relative to what you purchase? What is your firm's
payment policy doing to enhance or detract from your credit rating?
5. Accrued expenses and taxes payable: - These are obligations of your

company at any given time and represent a future outflow of cash.
Two different concepts of working capital are:-
• Balance sheet or Traditional concept

• Operating cycle concept.
Balance sheet or Traditional concept:- It shows the position of the firm at

certain point of time. It is calculated in the basis of balance sheet prepared at a
specific date. In this method there are two type of working capital:-
• Gross working capital
• Net working capital
Gross working capital:- It refers to the firm’s investment in current assets.

The sum of the current assets is the working capital of the business. The sum of
the current assets is a quantitative aspect of working capital. Which emphasizes
more on quantity than its quality, but it fails to reveal the true financial position
of the firm because every increase in current liabilities will decrease the gross
working capital.
Net working capital:- It is the difference between current assets and current
liabilities or the excess of total current assets over total current liabilities.
Working capital= current assets - current liabilities.
Net working capital: - It is also can defined as that part of a firm’s current
assets which is financed with long term funds. It may be either positive or
negative. When the current assets exceed the current liability, the working
capital is positive and vice versa.
Operating cycle concept:- The duration or time required to complete the

sequence of eve1nts right from purchase of raw material for cash to the
realization of sales in cash is called the operating cycle or working capital cycle.
85
CASH RAW MATERIAL
DEBTORS & BILLS

OPERATING CYCLE WORK IN
RECEIVABLES PROGRESS
SALES FINISH GOODS
Types of Working Capital:-

85
TYPES OF
WORKING
CAPITAL
ON THE BASIS OF ON THE BASIS OF

B/S CONCEPT TIME
REGULAR TEMPORARY
GROSS WORKING NET WORKING
WORKING WORKING
CAPITAL CAPITAL
CAPITAL CAPITAL
SEASONAL
WORKING
CAPITAL
SPECIFIC
WORKING
CAPITAL
SIGNIFICANCE OF WORKING CAPITAL:-

85
PAYMENT
TO
SUPPLIERS
EASY LOAN DIVIDEND

FROM DISTRIBUTI-
BANKS ON
SIGNIFICAN-
-CE OF
WORKING
CAPITAL
INCREASE INCREASE
EFFECIENC- DEBT
Y CAPACITY
INCREASE IN
FIX ASSETS
STATEMENT SHOWING CHANGE IN WORKING CAPITAL FOR MANIKGARH

CEMENTS LTD
85
(Rs. lacks)
Particulars 09-10 08-09 Increas Decreas
e(+) e(-)
Current
Assets
Inventorie 448.457 400.177 48.28
s
Sund. 143.584 183.244 39.66
Debtors
Cash & 128.254 149.828 21.574
Bank
Other C.A. 0.847 0.00 0.847
Loan & 340.722 276.098 64.624
Adv.
Total ( A ) 1061.86 1009.34
4 7
Current
Liabilitie
s
C.L. 622.377 668.499 46.122
Provisions 39.376 39.947 0.571
Total ( B ) 661.753 708.446
( A-B ) 400.111 300.901

↑ Change in 99.21
working
capital
85
CALCULATION OF WORKING CAPITAL FOR MANIKAGRH CEMENTS
LIMITED
(Rs. in
lacks)
YEAR 31.03.10
31.03.09
CURRENT ASSETS
INVENTORIES 448.457 400.177

SUNDRY DEBTORS 143.584 183.244
CASH AND BANK 128.254 149.828
OTHER CURRENT ASSETS 0.847 ------
LOANS & ADVANCES 340.722 276.098
TOTAL CURRENT ASSESTS 1061.864

1009.347
LESS:-
CURRENT LIABILITIES AND PROVISIONS
CURRENT LIABILITIES 622.377 668.499

PROVISION 39.376 39.947
TOTAL CURRENT LIABILITIES 661.753

708.446
NET CURRENT ASSETS 400.111

300.901
85
NET WORKING CAPITAL
500
AMOUNT(IN LACKS)
400
300
200
100
0
2009 3-D Column 1
2010
YEAR
Sources of Additional Working Capital
Sources of additional working capital include the following:
* Existing cash reserves

* Profits (when you secure it as cash!)
* Payables (credit from suppliers)
* New equity or loans from shareholders
* Bank overdrafts or lines of credit
* Long-term loans
85
ANALYSIS OF VARIOUS COMPONENTS OF WORKING CAPITAL
INVENTORY ANALYSIS
Inventory is total amount of goods and materials content in a store of factory at

any given time. Inventory means stock of three things:-
1. Raw materials
2. Semi finished goods.
3. Finished goods.
Analysis through chart:
460
440
AM OUNT (IN 420
LACKS) 400
380
360
2009 2010
YEAR
INTERPRETATION:
By analyzing the two years data we see that the inventories are increased year
by year. We are looking increasing pattern in inventories. We can see that
inventories are grown by 9.57% and 12.06% in 08-09 and 09-10 respectively
from previous year. By this growth we can say that the company is growing very
rapidly in cement sector. A company uses inventory when they have demand in
market and Manikgarh cements is having a great demand in infrastructure
sector. That is biggest reason for increase in inventories. From other point of
view we can say that the liquidity of firm is blocked in inventories but to stock is
very good due to uncertainty of availability of raw material in time.
85
SUNDRY DEBTORS ANALYSIS
Debtors or an account receivable is an important component of working capital

and fall under current assets. Debtors will arise only when credit sales are
made.
Position of Sundry Debtors in Manikgarh Cements Limited

(Rs. in lacks)
YEAR 31.03.09
31.03.10
Debts outstanding more than 6 months

Secured, Considered Good 0.372395 0.717181
Unsecured, Considered Good 0 0
Other Debts
Secured, Considered Good 143.212058
182.244995
Unsecured, considered Good
--------------- ---------------
143.584453 183.244995
--------------- ---------------
200
150
AMOUNT ( IN
100
LACKS)
50
0
2009 2010
YEAR
INTERPRETATION
In the table and figure we see that there is continuous rise in the debtors of
Manikgarh cements Limited in the successive years. A simple logic is that
debtors increase only when sales increase and if sales increases it is good sign
for growth. We can see 17.53% and 27.62% growth in 08-09 and 09-10
respectively from previous years.
We can say that it is a good sign as well as negative also. Company policy of
debtors is very good but a risk of bad debts is always present in high debtors.
When sales are increasing with a great speed the profit also increases. If
85
company decreases the Debtors they can use the money in many investment
plans.
CASH AND BANK BALANCE ANALYSIS
Cash is called the most liquid asset and vital current assets; it is an important
component of working capital. In a narrow sense, cash includes notes, bank
draft, cheque etc while in a broader sense it includes near cash assets such as
marketable securities and time deposits with bank.
Position of Cash and Bank Balance in Manikgarh Cements Limited

(Rs. in lacks)
YEAR 31.03.09 31.03.10
Cash Balance in hand 0.117 0.821

Bank Balance-
With Scheduled Banks 123.332 145.329
In fixed deposits 4.062 4.015
Interest accrued 0.039 0.367
----------------- -------------
127.55 150.532
------------------ -------------
155
150
145
140
AMOUNT ( IN
135
LACKS )
130
125
120
115
2009 2010
YEAR
INTERPRETATION
If we analyze the above table and chart we find that it follows a increasing
trend. In the year 2009 the amount in bank and cash is ay very low level.
Although company’s cash is increasing but this is not very good sign for
company because they are holding the cash in hand instead of using the cash
for better projects. The analysis shows that the fix deposits of company are
fallen slightly in last two years from previous year. Company is utilizing the fixed
cash for exploding the projects that is good for growth,
85
LOANS AND ADVANCES ANALYSIS
Loans and Advances here refers to any to amount given to different parties,
company, employees for a specific period of time and in return they will be
liable to make timely repayment of that amount in addition to interest on that
loan.
Position of Other Loans & Advances in Manikgarh Cements Limited
(Rs. in lacks)
YEAR 31.03.09
31.03.10
Advances to subsidiary companies

Advances 275.694 340.514
Interest Receivable 0.404 0.207
Deposits
--------------- ---------------
276.098 340.722
--------------- ---------------
350
300
250
AMOUNT ( IN 200
LACKS ) 150
100
50
0
2009 2010
YEAR
INTERPRETATION
If we analyze the table and the chart we can see that it follows an increasing
trend which is a good sign for the company. We can see that from the year 2009
to 2010 it increased a little. We can see that the increase of 23.41 from previous
year.
The increasing pattern shows that company is giving advances for the
expansion of plants and machinery which is good sign for better production of
cement and other goods. Although company’s cash is blocked but this is good
85
that company is doing modernization of plants in time to compete with other
competitors in market.
CURRENT LIABILITIES ANALYSIS
Current liabilities are any liabilities that are incurred by the firm on a short term
basis or current liabilities that has to be paid by the firm within one year.
Position of Other Current Liabilities in Manikgarh Cements Limited
(Rs. in lacks)
YEAR 31.03.09 31.03.10
Current Liabilities –
Sundry Creditors 582.615 545.416
Other Liabilities 85.857 76.887
Investor Education and Protection fund
Interest accrued but not due 0.296 0.0733
--------------- ----------------
668.768 622.376
---------------- ----------------
670
660
650
AMOUNT ( IN 640
630
LACKS )
620
610
600
590
2009 2010
YEAR
INTERPRETATION
If we analyze the above table then we can see that it follow an decreasing trend.
The important component of current liabilities is sundry creditors and other
liabilities. In 09-10 it decreased by 6.94%. This is liability for company so this
should be less. When company has minimum liabilities it creates a better
goodwill in market. High current liabilities indicate that company is using credit
facilities by creditors.
85
PROVISIONS ANALYSIS
Position of Other Provisions in Manikgarh Cements Limited

(Rs in
lacks)
YEAR 31.03.09
31.03.10
Proposed Earned leaves 39.947 39.376

Corporate Dividend Tax
Income Tax
Fringe Benefit Tax
Wealth Tax
Fringe Benefit Tax
--------------- ----------------
39.947 39.376
---------------- ---------------
40
39.9
39.8
39.7
AMOUNT ( IN 39.6
39.5
LACKS )
39.4
39.3
39.2
39.1
39
2009 2010
YEAR
INTERPRETATION
From the above table we can see that provision shows an decreasing trend and
the huge amount is being kept in these provisions. The major share of company
is invested in provision for the earned leaves and they are contributed towards
employees funds. The provisions has been very slightly decreased in year 2010.
85
85
Conclusion
The overall performance of Manikgarh Cements is getting on a good track. The
total turnover of the company has registered a growth of 11.27% where as the
operating profits for the year were higher by 18.03% mainly on the accounts of
increase in the volume or blended cement in the overall cement sales, higher
realization and effective cost control measures taken by the company. The profit
before tax was up by 19.37% at Rs. 551.18 cores at against Rs. 461.74 cores in
the previous year. The cash earning of the company improved substantially to
Rs. 501.39 cores as against Rs.179.25 cores in the last financial year. With the
increase in capacity on account of expansion projects being undertaken by the
company, it is expected that the company would be in a position to maintain the
growth in future years.
Company has parked its surplus fund in the various debt schemes of mutual
fund. There is an increase of 40% in investment from the previous year (century
textiles and industries ltd). Company is cash rich but as there are expansion and
diversification plans under the pipeline, company is not utilizing these funds. For
meeting the working capital needs and capacity expansion needs it has
borrowed from banks.
The recent boom in the housing, construction and retail sector in India coupled
with continued thrust of the Government on infrastructure projects is expected
to sustain healthy growth of cement demand. During the year 2007-08, Indian
cement industry has registered a growth of 9.34% in terms of cement
production. Almost all the major players in the industry including Birla
Corporation Ltd have announced substantial increase in capacity and the
possibility of oversupply situation cannot be ruled out.
The concern about the cement industry is that it is one of the most taxed
industries in the country where the government levies and taxes, taken
together, constitute over 70% of the ex-factory price. On the top of the above
the increase in the cost of coal, railway freight and transportation charge have
further added worries of cement manufactures.
85
MAJOR FINDINGS
Statement Showing Difference from Previous Year
(Amt. in lacks)
Particulars 2009-10
Investments
↑
Inventories 448.457
↑ by 12.06%
Sundry 143.584
Debtors ↑ by 21.64%
Cash & Bank 128.254
↓ by 14.39%
Current 622.377
Liabilities ↓ by 6.89%
1. NPAT is increasing day by day from last three years and the growth
is remarkable.
2. Has shown that it is very strong competitor in cement sector of

India.
3. Cement can be said as true fruitful business for Century textiles &
industry Ltd from last many years.
4. Overall all ratios of the company are good and company need to
work with more efficiency.
5. The additional capacity of cement production at Gadchandur will

create new milestones for the manikgarh
6. Lack of advertisement can be said as weak point of the Manikgarh.
7. Investment policies are very much reliable.
8. Position of the stock is increasing per year that is good sign to face
the competition coming ahead.
85
Future of the Cement Industry:
Government policies have affected the growth of cement plants in India in

various stages. The control on cement for a long time and then partial decontrol
and then total decontrol has contributed to the gradual opening up of the
market for cement producers. The consumption of cement is determined by
factors influencing the level of housing and industrial construction, irrigation
projects, and roads and laying of water supply and drainage pipes etc. The level
and growth of GDP and its sectoral composition, capital formation, development
expenditure, growth in population, level of urbanization, etc, in turn, determine
these factors. But the domestic demand for cement is mainly from the housing
activities and infrastructure development.
The government paved the way for the entry of the private sector in road
projects. It has amended the National Highway Act to allow private toll collection
and identified projects, bridges, expressways and big passes for private
construction. The budget gave substantial incentives to private sector
construction companies. Ongoing liberalization will lead to an increase in
industrial activities and infrastructure development. So it is hoped that Indian
cement industry shall boom again in near future.
85
SWOT ANALYSIS OF MANIKGARH CEMENTS LIMITED
STRENGTHS:-
1. The industry is likely to maintain its growth momentum and

continue growing at about 9 – 10% in the foreseeable future.
2. Government initiative in the infrastructure sector such as the

commencement of the second phase of the National Highway
Development project, freight carriers, rural roads and development of
the housing sector, are likely to be the main drivers of growth.
3. Measures initiated by the Government towards public-private

partnership for removing bottleneck in the development of
infrastructure in the country, augurs well for the industry.
4. In the coming few years the demand for the cement will increase
which will be booming news for cement manufactures.
5. For the purpose of the packing of essential item, jute products

which are environment friendly and biodegradable characteristic are
considered as best option.
WEAKNESSES:
1. High capital cost and investment cost for each and every project.
2. The complex Excise Duty structure based on the category of buyer

and end use of the cement has caused at lot of confusion in the
industry.
3. The recent ban on export of cement clinker would increase the

availability of cement in the domestic market, which in turn would put
pressure on cement prices.
4. The major concern for the industry are :
• Continuous increase in labour cost.

• Shortage of skilled labourers.
• Appreciation of rupees against foreign currencies.
• Procuring of limestone mines at economical price an entry barrier.
85
OPPORTUNITIES:-
2. Adequate support from the Government is very essential to promote

business activities.
3. Increase in the production and sell of cement at different plants

have increased the turnover of the company.
4. It would be in the interest of both the government and the industry

to work together with aim to streamline the indirect tax regime and
keep the prices of the inputs such as coal under control so that the
cement price can be maintained at reasonable levels.
5. Despite slightly lower economic growth, the construction and

infrastructure sector is expected to record healthy growth, which
augurs well for cement industry.
6. The modernization, productivity improvement and cost control

measures will improve the performance of the division in times to
come.
THREATS:-
• The recent moves by the Central Government in making the import of

the cement total duty free, is a cause of for the Indian cement
industry.
• Further recent changes in the Central Excise Duty structure by way of

introduction of multiple slabs of Excise Duty is also a cause of worry for
the industry.
• Almost all the major players in the industry have announced

substantial increase in the capacity and the possibility of oversupply
situation cannot be ruled out.
• Increased railway freight, coal prices and dispatch bottlenecks on

account of truck Loading restrictions imposed by various State
Governments
• Scarcity of good quality Coal is some other factors which are cause of
concern for the industry.
85
85
Bibliography
The Reference Books Author
Financial Management Khan & Jain
Financial Management I.M.Pandey
Research Methodology C.R.Kothari
Cement Manufacturing Association (April-2009)
Websites:-
 www.manikgarh.com
 www.birlacorporation.com
85
 www.stockindia.com
 www.cma.co.in
 www.scribd.com
 www.nse.com
 www.bse.com
 www.binanicement.com
85

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A PROJECT REPORT

(A DIVISION OF CENTURY TEXTILES & INDUSTRIES LTD)

Dr. Ambedkar Business School,

Under The Guidance Of

Mr. D.K.DAK Sir

“Ratio Analysis & Working Capital

A Project Report Submitted in Partial Fulfillment of the

“Post Graduate Diploma in Management (2009-11)”

Under The Guidance Of

This is to certify that the internship project titled

Is a bonafide work of ________________________________________________

(A DIVISION OF CENTURY TEXTILES & INDUSTRIES LTD)

This is to certify that Mr.RUPESH KHEMRAJ HATNAPURE of

We wish the student a bright and prosperous future.

(General Manager) (Sr. Manager Finance)

We wish him best luck.

Seal of the company

Signature of the Company Guide

Name of company Guide.

This is to certify that Mr. Rupesh Khemraj Hatnapure of

Dr. Ambedkar Business School, Nagpur has no dues pending

With the company.

Seal of the company

Signature of the company guide

Name of the company guide.

In the field of management every time there is a requirement of understanding

It is more applicable in the field of the management especially a professional

At the end findings and suggestions are reported.

I hope this serves the Purpose. 85

I would also like to thank my mentor and project – coordinator, for

The constraints faced by the industry are reviewed in the Infrastructure

Cement industry in India is currently going through a consolidation phase. Some

GROWTH IN CEMENT PRODUCTION 2009-10 (Apr-Mar)

This Graphical represenation shows that overall growth in cement production in

This Graphical represenataion shows that overall growth in cement consumption

REGIONWISE CEMENT PRODUCTION 2009-10 (Apr- Mar)

CAPACITYWISE TOP TEN PLAYERS FOR YEAR 2009-2010

(Figures in Mn. Tones)

HOLCIM / ACC / AMBUJA 38.21

GRASIM / ULTRA TECH CEMENT 36.25

JAYPEE GROUP. 9.93

THE INDIAN CEMENTS LTD. 9.64

SHREE CEMENT 9.10

CENTURY TEXTILES & 7.80

BIRLA CORPORATION LTD. 5.78

MADRAS CEMENTS LTD. 5.47

LAFARGE INDIA PRIVATE LTD. 5.15

BIG PLAYERS: CEMENT INDUSTRY IN INDIA

 ACC contributed 11.8% to the sector

SCENARIO OF DEMAND AND SUPPLY

Raw Material Preparation

In the wet process, each raw material is proportioned to meet a desired

Finish Grinding and Distribution

Manikgarh Cement is a division of Century Textiles and Industries Ltd, a flagship

Manikgarh Cement is situated at Gadchandur, Dist. Chandrapur in the State of

The capacity enhancement to 7.80 Million TPA is under implementation by

Our Vision - The 3T

 To achieve international standards of excellence in all aspect of division and

 To maximize creation for wealth and satisfaction for the stakeholder.

 To foster a culture of participation and innovation of employee growth and

 To cultivate high standards of business ethics and total Quality Management.

 To attain leadership in developing, adopting and assimilating state-of-art

 Offered full opportunities and challenges to develop individually enabling