1.
A
COMPREHENSIVE PROJECT
ON
“A Comparative Study on the Financial Performance of Cement
Industry”
Submitted to
Anand Institute of Management
IN PARTIAL FULFILLMENT OF THE
REQUIREMENT OF THE AWARD FOR THE DEGREE OF
MASTER OF BUSINESS ASMINISTRATION
In
Gujarat Technological University
UNDER THE GUIDANCE OF
Faculty Guide
Krishna Gor
Assistant Prof.
Submitted by
Jaynand Patalia Rupesh Vasava
Enrollment No.:107020592058 Enrollment No.:107020592056
MBA SEMESTER III/IV
Anand Institute of Management
MBA PROGRAMME
Affiliated to Gujarat Technological University
Ahmedabad
December, 2011

2.
CERTIFICATE

3.
TABLE OF CONTENTS
PREFACE
ACKNOWLEDGEMENT
DECLARATION
EXECUTIVE SUMMARY
SR. NO. PARTICULAR PAGE NO.
PART – I INDUSTRY STUDY
1. OVERVIEW OF CEMENT INDUSTRY 1
2. PRODUCT PROFILE `5
3. DEMAND DETERMINATION 9
4. PLAYERS IN THE INDUSTRY 12
5. DISTRIBUTION CHANNELS 14
6. KEY ISSUES AND CURRENT TRENDS 15
7. LITERATURE REVIEW 18
8. OBJECTIVES OF THE STUDY 19
9. PESTEL ANALYSIS OF THE INDUSTRY 21
10. PORTERS FIVE FORCE MODEL 23
PART – II COMPANY STUDY
11. OVERVIEW OF THE COMPANIES 24
12. PRODUCT PROFILE 33
13. FINANCIAL ANALYSIS 34
14. SWOT ANALYSIS OF AMBUJA CEMENT 44
15. SWOT ANALYSIS OF BINANI CEMENT 45
16. COMPARATIVE ANALYSIS OF THE COMPANIES 47
17. FINDINGS AND CONCLUSIONS 61
ANNEXTURES
BBILIOGRAPHY

4.
PREFACE
“Experience is the best teacher.” This saying plays a guiding line in our lives and
also in project reports that are an integral part of the MBA programmed in Gujarat
technological University.
Today’s age is an age of management. Management is the backbone of any
organization or any activity done. The real success of management lies in applying
the professional management techniques an all managerial activities.
Hence, to attain this objective and to have the outlook of performance of the cement
industry and to analyze the emerging trends of the same in Indian Economy we have
undertaken the Comprehensive Project on “A Comparative Analysis of the
Financial Performance of the Cement Industry”.

5.
ACKNOWLEDGEMENT
Nothing concrete can be achieved without an optimal combination of
inspiration and perspiration. No work can be accomplished without taking the
guidance of the import. It is only the critiques for the ingenious intellectual
that helps transform a product into a quality product.
A project is a major milestone during the study period of a student. As such this
project was a challenge to us and was an opportunity to prove our caliber. It would
not have been possible to see through the undertaken project without the guidance
of Prof. KRISHNA GOR. It was purely on the basis of her experience and
knowledge that we were able to clear all the theoretical and technical hurdles during
the development phases of this project work.
I even show my gratitude towards Dr. N.N. Patel, Director, AIM, ANAND and my
faculty guide Prof Krishna Gor without whose support my project would not be
possible to complete.
I have been able to prepare my report successfully and I acknowledge a special
thanks to all those people without whose support it was impossible for me to make
the project report.

6.
DECLARATION
We, JAYNAND PATALIA AND RUPESH VASAVA, hereby declare that the
Report for Comprehensive Project entitled
“A COMPARATIVE ANALYSIS OF FINANCIAL PERFORMANCE OF CEMENT
INDUSTRY WITH SPECIAL REFRENCE”
Is a result of our own work and our indebtedness to other work publications
References, if any, have been duly acknowledged.
Place:
Date: JAYNAND PATALIA
RUPESH VASAVA

7.
EXECUTIVE SUMMARY
The title of the comprehensive project is “A Comparative Analysis of Financial
Performance of Cement Industry”. Comparative analysis study helps in
determining the various financial studies of the companies. Comparative study
shows the relation between the companies as well as relation between the various
industries of the economy.
Thus, we selected this title for the comparative study of companies in cement
industry. We have selected the following two companies for the study of the
comparative analysis of financial performance of the cement industry in India.
1) AMBUJA CEMENT LTD.
2) BINANI CEMENT LTD.
The companies have been chosen based on market share, production capacity and
net profits for the previous years. Both the companies are the leading producer in the
cement industry in India.
The cement industry is the leading industry in India which is having a very high
growth rate. Cement Industry of India is the world’s second largest producer of
cement products after China. Thus, Indian cement industries in India have a very
high growth rate and it contributes very high percentage to the GDP of Indian
Economy.

8.
LIST OF TABLES
Sr. No. PARTICULARS TABLE NO. PAGE NO.
1. GROWTH OF CEMENT 1 4
DEMAND
2. DEMAND DETERMINATION 2 10
3. MAJOR PLAYERS IN NORTH 3 12
4. MAJOR PLAYERS IN SOUTH 4 13
RATIOS ANALYSIS
5. OPERATING PROFIT MARGIN 5 34
6. GROSS PROFIT MARGIN 6 35
7. NET PROFIT MARGIN 7 35
8. CURRENT RATIO 8 36
9. QUICK RATIO 9 36
10. DEBT EQUITY RATIO 10 37
11. INVENTORY TURNOVER RATIO 11 38
12. DEBTORS TURNOVER RATIO 12 38
13. ASSET TURNOVER RATIO 13 39
DUPONT ANALYSIS
14. AMBUJA CEMENT 14 40
15. BINANI CEMENT 15 42
COMPARATIVE ANALYSIS
16. RETURN ON NET ASSET 16 47
17. RETURN ON EQUITY 17 48
18. RETURN ON PROFIT MARGIN 18 49
19. FINANCIAL LEVERAGE (I/S) 19 50
20. FINANICIAL LEVERAGE (B/S) 20 51
21. RATIO ANALYSIS 21 52,53,54,55,56,
57,58,59,60

9.
LIST OF GRAPHS
Sr. No. PARTICULARS GRAPH NO. PAGE NO.
1. PROCESS WISE 1 8
2. DEMAND DETERMINATION 2 10
3. CAPCITY DISTRIBUTION 3 11
4. MAJOR PLAYERS IN NORTH 4 12
5. MAJOR PLAYERS IN SOUTH 5 13
COMPARATIVE ANALYSIS
6. RETURN ON NET ASSETS 6 47
7. RETURN ON EQUITY 7 48
8. RETURN ON PROFIT MARGIN 8 49
9. FINANCIAL LEVERAGE (I/S) 9 50
10. FINANCIAL LEVERAGE (B/S) 10 51
11. GROSS PROFIT MARGIN 11 52
12. OPERATING PROFIT MARGIN 12 53
13 NET PROFIT MARGIN 13 54
14. CURRENT RATIO 14 55
15. QUICK RATIO 15 56
16. DEBT EQUITY RATIO 16 57
17. INVENTORY TURNOVER RATIO 17 58
18. DEBTORS TURNOVER RATIO 18 59
19. ASSETS TURNOVER RATIO 19 60
LIST OF DIAGRAMS

10.
Sr. No. PARTICULARS DIAGRAM NO. PAGE NO.
1. CEMENT MANUFACTURING 1 7
PROCESS
2. PORTER’S FIVE FORCE MODEL 2 23
3. DUPONT ANALYSIS(AMBUJA 3 41
CEMENT)
4. DUPONT ANALYSIS(BINANI 4 43
CEMENT)

11.
PART-1 INDUSTRY STUDY

12.
PART-2 COMPANY STUDY
ANNEXTURES

13.
BALANCE SHEET AND PROFIT AND LOSS
Balance Sheet of Ambuja ------------------- in Rs. Cr. -------------------
Cements
Dec '11 Dec '10 Dec '09 Dec '08 Dec '07
12 mths 12 mths 12 mths 12 mths 12 mths
Sources Of Funds
Total Share Capital 306.87 305.97 304.74 304.52 304.48
Equity Share Capital 306.87 305.97 304.74 304.52 304.48
Share Application Money 32.12 1.34 0.24 0.34 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 7,730.45 7,022.79 6,165.92 5,368.01 4,356.77
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Networth 8,069.44 7,330.10 6,470.90 5,672.87 4,661.25
Secured Loans 0.00 0.00 100.00 100.00 100.00
Unsecured Loans 49.36 65.03 65.70 188.67 230.42
Total Debt 49.36 65.03 165.70 288.67 330.42
Total Liabilities 8,118.80 7,395.13 6,636.60 5,961.54 4,991.67
Dec '11 Dec '10 Dec '09 Dec '08 Dec '07
12 mths 12 mths 12 mths 12 mths 12 mths
Application Of Funds
Gross Block 9,702.29 8,778.82 6,224.13 5,706.94 5,231.05
Less: Accum. Depreciation 3,515.83 3,151.07 2,784.09 2,514.19 2,271.19
Net Block 6,186.46 5,627.75 3,440.04 3,192.75 2,959.86
Capital Work in Progress 577.28 930.70 2,714.43 1,947.22 696.79
Investments 864.31 625.95 727.01 332.39 1,288.94
Inventories 924.97 901.86 683.24 939.75 581.60
Sundry Debtors 240.85 128.18 152.20 224.60 145.68
Cash and Bank Balance 175.43 198.40 116.64 123.73 114.94
Total Current Assets 1,341.25 1,228.44 952.08 1,288.08 842.22
Loans and Advances 674.03 422.61 292.65 351.82 237.04
Fixed Deposits 1,895.80 1,549.77 764.04 728.11 535.85
Total CA, Loans & Advances 3,911.08 3,200.82 2,008.77 2,368.01 1,615.11
Deffered Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 2,314.49 1,893.98 1,582.32 1,412.55 1,081.70
Provisions 1,106.11 1,096.57 674.04 470.56 493.55
Total CL & Provisions 3,420.60 2,990.55 2,256.36 1,883.11 1,575.25
Net Current Assets 490.48 210.27 -247.59 484.90 39.86
Miscellaneous Expenses 0.27 0.46 2.71 4.28 6.22
Total Assets 8,118.80 7,395.13 6,636.60 5,961.54 4,991.67
Contingent Liabilities 749.28 754.38 647.12 1,224.42 1,193.08
Book Value (Rs) 52.38 47.90 42.47 37.26 30.62

14.
Balance Sheet of Ambuja ------------------- in Rs. Cr. -------------------
Cements
Dec '06 Jun '05 Jun '04 Jun '03 Jun '02
18 mths 12 mths 12 mths 12 mths 12 mths
Sources Of Funds
Total Share Capital 303.37 270.38 179.40 155.30 155.17
Equity Share Capital 303.37 270.38 179.40 155.30 155.17
Share Application Money 1.14 0.03 0.07 0.09 18.16
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 3,187.21 1,908.01 1,842.29 1,461.25 1,449.32
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Networth 3,491.72 2,178.42 2,021.76 1,616.64 1,622.65
Secured Loans 317.77 549.33 649.78 845.00 1,191.15
Unsecured Loans 547.61 578.12 619.90 906.28 592.00
Total Debt 865.38 1,127.45 1,269.68 1,751.28 1,783.15
Total Liabilities 4,357.10 3,305.87 3,291.44 3,367.92 3,405.80
Dec '06 Jun '05 Jun '04 Jun '03 Jun '02
18 mths 12 mths 12 mths 12 mths 12 mths
Application Of Funds
Gross Block 4,542.50 3,709.17 3,658.07 2,957.93 2,855.43
Less: Accum. Depreciation 2,053.32 1,463.93 1,284.14 1,012.04 847.81
Net Block 2,489.18 2,245.24 2,373.93 1,945.89 2,007.62
Capital Work in Progress 634.93 118.10 124.29 66.06 44.64
Investments 1,133.12 1,125.06 1,010.97 1,101.71 1,132.05
Inventories 408.82 317.00 254.28 224.20 208.37
Sundry Debtors 89.95 45.84 42.71 45.94 39.01
Cash and Bank Balance 172.36 86.27 68.52 30.61 50.47
Total Current Assets 671.13 449.11 365.51 300.75 297.85
Loans and Advances 313.03 145.10 171.84 522.86 364.38
Fixed Deposits 205.74 0.26 0.31 0.27 0.26
Total CA, Loans & Advances 1,189.90 594.47 537.66 823.88 662.49
Deffered Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 929.06 676.70 692.96 499.85 410.98
Provisions 168.68 106.77 71.34 74.31 34.30
Total CL & Provisions 1,097.74 783.47 764.30 574.16 445.28
Net Current Assets 92.16 -189.00 -226.64 249.72 217.21
Miscellaneous Expenses 7.71 6.47 8.89 4.54 4.28
Total Assets 4,357.10 3,305.87 3,291.44 3,367.92 3,405.80
Contingent Liabilities 506.71 332.70 194.57 190.41 270.47
Book Value (Rs) 23.01 16.11 112.69 104.08 103.39

15.
Profit & Loss account of ------------------- in Rs. Cr. -------------------
Ambuja Cements
Dec '11 Dec '10 Dec '09 Dec '08 Dec '07
12 mths 12 mths 12 mths 12 mths 12 mths
Income
Sales Turnover 9,601.42 8,286.20 7,763.93 7,089.89 6,469.68
Excise Duty 1,128.28 914.68 680.72 907.80 798.29
Net Sales 8,473.14 7,371.52 7,083.21 6,182.09 5,671.39
Other Income 234.38 214.58 180.41 468.18 965.04
Stock Adjustments -57.00 54.28 -49.44 62.62 58.79
Total Income 8,650.52 7,640.38 7,214.18 6,712.89 6,695.22
Expenditure
Raw Materials 1,652.18 1,475.20 1,642.09 1,251.08 953.32
Power & Fuel Cost 2,006.34 1,697.34 1,422.75 1,325.69 1,004.20
Employee Cost 425.46 344.91 274.29 266.94 209.46
Other Manufacturing Expenses 254.06 227.03 161.66 145.61 124.50
Selling and Admin Expenses 1,865.09 1,633.14 1,426.15 1,276.80 1,254.41
Miscellaneous Expenses 256.20 199.42 202.19 215.64 140.63
Preoperative Exp Capitalised -6.74 -11.36 -19.33 -21.19 -9.47
Total Expenses 6,452.59 5,565.68 5,109.80 4,460.57 3,677.05
Dec '11 Dec '10 Dec '09 Dec '08 Dec '07
12 mths 12 mths 12 mths 12 mths 12 mths
Operating Profit 1,963.55 1,860.12 1,923.97 1,784.14 2,053.13
PBDIT 2,197.93 2,074.70 2,104.38 2,252.32 3,018.17
Interest 52.63 48.69 22.43 32.06 75.85
PBDT 2,145.30 2,026.01 2,081.95 2,220.26 2,942.32
Depreciation 445.15 387.19 296.99 259.76 236.34
Other Written Off 0.19 0.61 1.57 1.72 0.47
Profit Before Tax 1,699.96 1,638.21 1,783.39 1,958.78 2,705.51
Extra-ordinary items 92.08 64.22 26.52 11.28 -194.92
PBT (Post Extra-ord Items) 1,792.04 1,702.43 1,809.91 1,970.06 2,510.59
Tax 541.46 435.55 585.14 567.79 741.49
Reported Net Profit 1,228.86 1,263.61 1,218.37 1,402.27 1,769.10
Total Value Addition 4,800.41 4,090.48 3,467.71 3,209.49 2,723.73
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 490.69 397.22 365.59 334.97 532.65
Corporate Dividend Tax 79.60 65.27 62.13 56.92 90.52
Per share data (annualised)
Shares in issue (lakhs) 15,343.69 15,298.59 15,237.11 15,225.99 15,223.75
Earning Per Share (Rs) 8.01 8.26 8.00 9.21 11.62
Equity Dividend (%) 160.00 130.00 120.00 110.00 175.00
Book Value (Rs) 52.38 47.90 42.47 37.26 30.62

16.
Profit & Loss account of ------------------- in Rs. Cr. -------------------
Ambuja Cements
Dec '06 Jun '05 Jun '04 Jun '03 Jun '02
18 mths 12 mths 12 mths 12 mths 12 mths
Income
Sales Turnover 7,022.59 3,025.84 2,305.18 2,025.10 1,582.63
Excise Duty 796.31 428.79 343.05 290.58 198.85
Net Sales 6,226.28 2,597.05 1,962.13 1,734.52 1,383.78
Other Income 111.07 70.51 71.84 68.48 32.74
Stock Adjustments -10.92 6.97 11.27 4.39 -12.79
Total Income 6,326.43 2,674.53 2,045.24 1,807.39 1,403.73
Expenditure
Raw Materials 1,007.07 435.52 337.45 307.97 228.98
Power & Fuel Cost 1,239.87 678.40 463.63 430.60 323.99
Employee Cost 235.98 106.44 88.68 68.86 49.87
Other Manufacturing Expenses 185.59 92.97 71.68 60.92 42.87
Selling and Admin Expenses 1,273.55 502.01 408.14 335.16 218.53
Miscellaneous Expenses 122.96 61.77 55.95 56.60 52.90
Preoperative Exp Capitalised -10.82 -3.43 0.00 0.00 0.00
Total Expenses 4,054.20 1,873.68 1,425.53 1,260.11 917.14
Dec '06 Jun '05 Jun '04 Jun '03 Jun '02
18 mths 12 mths 12 mths 12 mths 12 mths
Operating Profit 2,161.16 730.34 547.87 478.80 453.85
PBDIT 2,272.23 800.85 619.71 547.28 486.59
Interest 113.23 91.77 114.22 126.62 117.67
PBDT 2,159.00 709.08 505.49 420.66 368.92
Depreciation 326.12 195.41 168.61 171.64 137.82
Other Written Off 1.07 0.94 0.70 1.00 0.76
Profit Before Tax 1,831.81 512.73 336.18 248.02 230.34
Extra-ordinary items 10.17 6.08 47.59 5.81 -6.32
PBT (Post Extra-ord Items) 1,841.98 518.81 383.77 253.83 224.02
Tax 338.73 50.52 46.98 31.74 45.12
Reported Net Profit 1,503.25 468.29 336.79 221.73 186.15
Total Value Addition 3,047.13 1,438.16 1,088.08 952.14 688.15
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 461.24 189.16 142.07 108.71 93.11
Corporate Dividend Tax 64.69 26.54 18.34 13.93 0.00
Per share data (annualised)
Shares in issue (lakhs) 15,168.29 13,518.83 1,794.00 1,553.18 1,551.90
Earning Per Share (Rs) 9.91 3.46 18.77 14.28 11.99
Equity Dividend (%) 165.00 90.00 80.00 70.00 60.00
Book Value (Rs) 23.01 16.11 112.69 104.08 103.39

17.
Balance Sheet of Binani ------------------- in Rs. Cr. -------------------
Cement
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
12 mths 12 mths 12 mths 12 mths 12 mths
Sources Of Funds
Total Share Capital 188.60 203.10 203.10 203.10 203.10
Equity Share Capital 188.60 203.10 203.10 203.10 203.10
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 390.42 472.05 273.30 214.54 98.12
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Net worth 579.02 675.15 476.40 417.64 301.22
Secured Loans 1,025.44 922.96 740.20 732.33 658.77
Unsecured Loans 210.14 60.14 38.14 38.14 32.23
Total Debt 1,235.58 983.10 778.34 770.47 691.00
Total Liabilities 1,814.60 1,658.25 1,254.74 1,188.11 992.22
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
12 mths 12 mths 12 mths 12 mths 12 mths
Application Of Funds
Gross Block 1,897.03 1,800.51 1,588.68 1,445.39 839.99
Less: Accum. Depreciation 641.25 552.82 471.19 397.11 347.03
Net Block 1,255.78 1,247.69 1,117.49 1,048.28 492.96
Capital Work in Progress 122.21 100.01 202.30 171.47 517.37
Investments 546.12 374.57 211.30 46.77 0.00
Inventories 161.84 169.98 212.54 217.44 57.25
Sundry Debtors 0.00 0.00 0.00 0.01 0.24
Cash and Bank Balance 137.28 165.49 70.94 43.28 27.53
Total Current Assets 299.12 335.47 283.48 260.73 85.02
Loans and Advances 291.46 262.09 184.79 188.72 179.43
Fixed Deposits 93.19 143.95 16.27 52.65 20.17
Total CA, Loans & Advances 683.77 741.51 484.54 502.10 284.62
Deffered Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 736.62 673.96 691.10 498.21 241.37
Provisions 56.67 131.56 69.80 82.32 61.35
Total CL & Provisions 793.29 805.52 760.90 580.53 302.72
Net Current Assets -109.52 -64.01 -276.36 -78.43 -18.10
Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00
Total Assets 1,814.59 1,658.26 1,254.73 1,188.09 992.23
Contingent Liabilities 462.92 420.75 127.10 392.38 156.98
Book Value (Rs) 30.70 33.24 23.46 20.56 14.83

18.
Balance Sheet of Binani ------------------- in Rs. Cr. -------------------
Cement
Mar '06 Mar '05 Mar '04 Mar '03 Mar '02
12 mths 12 mths 12 mths 12 mths 12 mths
Sources Of Funds
Total Share Capital 203.10 217.07 217.07 217.07 422.91
Equity Share Capital 203.10 217.07 217.07 217.07 422.91
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 50.04 17.74 3.79 0.33 -138.74
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Networth 253.14 234.81 220.86 217.40 284.17
Secured Loans 534.36 487.86 413.56 407.79 367.90
Unsecured Loans 0.00 9.90 1.65 0.00 0.00
Total Debt 534.36 497.76 415.21 407.79 367.90
Total Liabilities 787.50 732.57 636.07 625.19 652.07
Mar '06 Mar '05 Mar '04 Mar '03 Mar '02
12 mths 12 mths 12 mths 12 mths 12 mths
Application Of Funds
Gross Block 803.95 791.95 767.89 745.56 732.24
Less: Accum. Depreciation 308.07 266.99 228.68 189.70 150.49
Net Block 495.88 524.96 539.21 555.86 581.75
Capital Work in Progress 100.02 5.16 5.06 2.58 1.57
Investments 0.00 23.09 23.25 23.25 23.16
Inventories 33.55 33.60 39.59 40.03 39.86
Sundry Debtors 0.23 0.43 0.78 0.79 2.01
Cash and Bank Balance 15.66 8.81 8.82 14.64 16.49
Total Current Assets 49.44 42.84 49.19 55.46 58.36
Loans and Advances 153.54 222.25 86.18 57.17 70.88
Fixed Deposits 87.10 0.00 0.00 0.00 0.00
Total CA, Loans & Advances 290.08 265.09 135.37 112.63 129.24
Deffered Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 78.64 83.48 66.82 69.12 83.65
Provisions 19.83 2.24 0.00 0.00 0.00
Total CL & Provisions 98.47 85.72 66.82 69.12 83.65
Net Current Assets 191.61 179.37 68.55 43.51 45.59
Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00
Total Assets 787.51 732.58 636.07 625.20 652.07
Contingent Liabilities 427.12 3.20 0.00 0.00 0.00
Book Value (Rs) 12.46 10.82 10.17 10.02 6.72

19.
Profit & Loss account of ------------------- in Rs. Cr. -------------------
Binani Cement
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
12 mths 12 mths 12 mths 12 mths 12 mths
Income
Sales Turnover 1,983.67 2,069.10 1,716.78 1,149.98 783.59
Excise Duty 255.17 211.22 220.24 186.94 105.15
Net Sales 1,728.50 1,857.88 1,496.54 963.04 678.44
Other Income 13.73 12.93 -14.39 6.17 -1.31
Stock Adjustments -13.70 -48.87 23.25 56.24 6.53
Total Income 1,728.53 1,821.94 1,505.40 1,025.45 683.66
Expenditure
Raw Materials 265.37 252.35 200.14 129.89 91.74
Power & Fuel Cost 512.96 429.85 535.99 235.56 142.03
Employee Cost 41.27 34.35 29.39 25.50 18.78
Other Manufacturing Expenses 76.05 67.57 52.79 32.39 21.29
Selling and Admin Expenses 496.85 403.40 354.47 236.39 165.10
Miscellaneous Expenses 50.83 36.43 22.91 13.21 7.99
Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00
Total Expenses 1,443.33 1,223.95 1,195.69 672.94 446.93
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
12 mths 12 mths 12 mths 12 mths 12 mths
Operating Profit 271.47 585.06 324.10 346.34 238.04
PBDIT 285.20 597.99 309.71 352.51 236.73
Interest 103.44 78.51 71.52 46.47 32.62
PBDT 181.76 519.48 238.19 306.04 204.11
Depreciation 99.50 91.66 80.31 55.67 43.46
Other Written Off 0.00 0.00 0.00 0.00 0.00
Profit Before Tax 82.26 427.82 157.88 250.37 160.65
Extra-ordinary items 11.73 -12.84 0.00 0.00 0.00
PBT (Post Extra-ord Items) 93.99 414.98 157.88 250.37 160.65
Tax 3.22 126.86 45.89 69.02 60.96
Reported Net Profit 90.51 281.92 108.67 175.82 95.61
Total Value Addition 1,177.95 971.60 995.56 543.04 355.19
Preference Dividend 0.00 0.00 0.00 0.00 40.62
Equity Dividend 47.15 71.09 42.65 50.78 0.00
Corporate Dividend Tax 7.65 12.08 7.25 8.63 6.90
Per share data (annualised)
Shares in issue (lakhs) 1,886.01 2,031.01 2,031.01 2,031.01 2,031.01
Earnings Per Share (Rs) 4.80 13.88 5.35 8.66 2.71
Equity Dividend (%) 25.00 35.00 21.00 25.00 0.00
Book Value (Rs) 30.70 33.24 23.46 20.56 14.83

20.
Profit & Loss account of ------------------- in Rs. Cr. -------------------
Binani Cement
Mar '06 Mar '05 Mar '04 Mar '03 Mar '02
12 mths 12 mths 12 mths 12 mths 12 mths
Income
Sales Turnover 584.65 529.74 462.68 441.08 433.60
Excise Duty 94.37 90.94 87.69 74.81 67.34
Net Sales 490.28 438.80 374.99 366.27 366.26
Other Income 0.85 -4.38 4.12 3.06 2.84
Stock Adjustments -3.60 -6.37 0.00 0.00 0.00
Total Income 487.53 428.05 379.11 369.33 369.10
Expenditure
Raw Materials 72.20 64.39 46.84 45.20 35.43
Power & Fuel Cost 137.49 127.89 0.00 0.00 0.00
Employee Cost 15.09 13.56 13.19 12.24 10.93
Other Manufacturing Expenses 20.97 19.02 119.30 119.49 116.51
Selling and Admin Expenses 94.65 86.60 0.00 0.00 0.00
Miscellaneous Expenses 8.65 9.78 98.00 94.44 98.91
Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00
Total Expenses 349.05 321.24 277.33 271.37 261.78
Mar '06 Mar '05 Mar '04 Mar '03 Mar '02
12 mths 12 mths 12 mths 12 mths 12 mths
Operating Profit 137.63 111.19 97.66 94.90 104.48
PBDIT 138.48 106.81 101.78 97.96 107.32
Interest 34.17 52.35 56.02 56.34 61.73
PBDT 104.31 54.46 45.76 41.62 45.59
Depreciation 42.91 42.00 41.28 40.59 39.48
Other Written Off 0.00 0.00 0.00 0.00 0.00
Profit Before Tax 61.40 12.46 4.48 1.03 6.11
Extra-ordinary items 0.00 0.00 -0.67 -0.80 -1.03
PBT (Post Extra-ord Items) 61.40 12.46 3.81 0.23 5.08
Tax 5.12 0.55 0.34 0.00 0.00
Reported Net Profit 52.96 6.45 4.13 1.03 6.13
Total Value Addition 276.84 256.85 230.49 226.17 226.35
Preference Dividend 10.06 0.00 0.00 0.00 0.00
Equity Dividend 0.00 0.00 0.00 0.00 0.00
Corporate Dividend Tax 1.41 0.00 0.00 0.00 0.00
Per share data (annualised)
Shares in issue (lakhs) 2,031.01 2,170.68 2,170.70 2,170.70 4,229.10
Earning Per Share (Rs) 2.11 0.30 0.19 0.05 0.14
Equity Dividend (%) 0.00 0.00 0.00 0.00 0.00
Book Value (Rs) 12.46 10.82 10.17 10.02 6.72

21.
BIBLIOGRAPHY
 Books
I. M. Pandey, Financial Management, Vikas Publishing Pvt, Ltd, and
(9th Edition).
 Websites
http://dipp.nic.in/English/Performance_Cement_Industry
http://www.slideshare.net/shonethattil/indian-cement-industry-
report
http://newsletters.cii.in/newsletters/mailer/trade_talk/pdf/Cement%
20Industry%20in%20India-%20Trade%20Perspectives
http://www.nseindia.com/content/ncfm/EDBM_workbook.pdf
www.ambujacement.com
http://www.binaniindustries.com/group-companies/binani-
industries/profile.asp
http://www.scribd.com/doc/19102170/A-case-study-on-Ambuja-
Cement
 Other Materials
 Annual report of the company
 Balance Sheet