This document is a summer training report submitted by Aman Keshawani towards his post graduate degree in management. The report details his internship experience at Ambuja Cement Ltd, where he studied the company's financial tools and marketing strategies. The report includes an introduction to the cement industry and Ambuja Cement, objectives of the study, history and development of ACL, company profile, SWOT analysis, learning about financial planning and analysis, capital structure, leverage analysis, and ACL's marketing segmentation, pricing, distribution channels, and sales promotion strategies.

1. SUMMER TRAINING REPORT SUBMITTED TOWARDS THE
PARTIAL FULFILLMENT OF POST GRADUATE DEGREE IN
MANAGEMENT
SUBMITTED BY:AMAN KESHARWANI
MBA- (2012-2014)
Enrollment No. : A30101912114
INDUSTRY GUIDE
MR. AMIT GUPTA
DEPUTY MANAGER
AMBUJA CEMENT LTD
BHATAPARA UNIT (CG)
FACULTY GUIDE
MS. APARAJITA DASGUPTA

2. STUDY OF FINANCIAL TOOLS &
MARKETING STRATEGIES AT
AMBUJA CEMENT LTD

3. CONTENTS
 Introduction of cement industry.
 Objectives of study.
 History & development of Ambuja cement limited.
 Company profile.
 SWOT Analysis.
 Learning during the internship Experience.
a) Analysis through Financial Tools.
b) Marketing strategies.
 Marketing Research.
 Research Methodology.
 Research Designs.
 Limitation of The Study.
 Suggestion.
 Conclusion.
 Bibliography…

4. INTRODUCTION OF CEMENT INDUSTRY
Cement is one of the core industries which plays a vital role in the growth and
expansion of a nation. It is basically a mixture of compounds, consisting mainly of
silicates and aluminates of calcium, formed out of calcium oxide, silica, aluminum
oxide and iron oxide. The demand for cement depends primarily on the pace of
activities in the business, financial, real estate and infrastructure sectors of the
economy. Cement is considered preferred building material and is used worldwide
for all construction works such as housing and industrial construction, as well as for
creation of infrastructures like ports, roads, power plants, etc. Indian cement
industry is globally competitive because the industry has witnessed healthy trends
such as cost control and continuous technology up gradation.

5. OBJECTIVES OF STUDY
Study of the working capital management is important because unless the working
capital is managed effectively, monitored effectively planed properly and reviewed
periodically at regular intervals to remove bottlenecks, if any, the company can’t
earn profits and increase its turnover.
 To study the working capital management of Ambuja Cements Ltd., Bhatapara.
 To study the optimum level of current assets & Current liabilities of the company.
 To study the working capital components such as Receivable accounts, Cash management,
Inventory position.
 To study the way & means of working capital finance of the Ambuja Cements Ltd.,
Bhatapara
 To estimate the working capital requirement of Ambuja Cements Ltd., Bhatapara.
 To study the Operating & Cash cycle of the company.

6. HISTORY AND DEVELOPMENT OF ACL
 Ambuja Cements Ltd. (ACL) is one of the leading cement manufacturing
companies in India. The Company, initially called Ambuja Cements Ltd., was
founded by Narotam Sekhsaria in 1983 with a partner, Suresh Neotia.
Sekhsaria’s business acumen and leadership skills put the company on a fast
track to growth. The Company commenced cement production in 1986.
 The global cement major Holcim acquired management control of ACL in 2006.
Holcim today holds little over 50% equity in ACL. The Company is currently
known as Ambuja Cements Ltd.

All the primary procedure was completed land acquisition procedures were
completed in early May 1983. take the possession of the land and legal
proceeding by the villagers compelled the management planned project and
management decided to locate the project at village RAWAN, BHATAPARA in
RAIPUR District.

7. BASIC INFORMATION OF THE COMPANY
 NAME & ADDRESS OF THE UNIT:
Ambuja Cement Ltd
Bhatapara, P.O. Rawan, Distt: Balod Bazar
Chhattisgarh – 493 332
 DIVISONS:
Ambuja Cements Ltd.
Ambuja Cement Ltd. Line-1
Ambuja Cement Ltd. Line-2
 YEAR OF ESTABLISHMENT: 11- February 1983.
 INVESTMENT:
February- 1983- Rs. 86 crores.
 REGISTERD OFFICE: P.O. Ambujanagar,
Taluka: Kodinar, Dist: Junagadh,
Gujarat: 362715

8.  CORPORATE OFFICE: Elegant Business Park,
MIDC Cross Road’ B’
Office Andheri kurla Road’Andheri (E)
Mumbai- 400 021.
 MISSION OF THE COMPANY:
To strive for an environment beyond Compliance. To adopt
environmentally sound technologies and management practices for
optimum utilization and conservation of natural resources.
 VISION OF THE COMPANY:
Their people practice a simple philosophy.
“Give a man orders and he’ll
Do the task reasonably well.
But let him set his own targets,
Give him freedom and authority,
And his task becomes
A personal mission:” „I CAN‟.

9. SWOT ANALYSIS
STRENGTH
 Lower energy cost due to imported calorific value coal and use of non-





conventional fuels.
Lower transportation cast due to increased transport through railway.
Very high brand identity.
Excellent innovation engineering and technological skill useful for operating
excellence.
Very less dependent on government for coal and power.
Favorable location having raw material site at a distance of 1 km near the
production line.
WEAKNESS


Many competitors in cement industry.
High transportation cast due to increased transport through sea router for
bulk shipping.

10. OPPORTUNITY
 Higher production of agricultural sector & service sector may result into higher
purchasing power, which will increase demand.
 Stability of Government may result into higher FDI inflow which will give rise
to MNC‟s entry in India, which would require operations in India. Thus large
infrastructure projects and related requirements of housing and accommodation
will boost cement sales.
 New product usage of RMC (Ready Mix Concrete) would the demand.
THREATS
 Threats from the economic cycles. i.e. Recession or growth.
 Change in Government policies in term of coal, diesel, raw material and
transport.
 Exchange rate fluctuation having direct effect on bottom line as well as on
export

11. LEARNING DURING THE INTERNSHIP EXPERIENCE
FINANCE DEPARTMENT
It is said, “Finance is the arms and legs of business “. A potential and capable
management can run the department very effectively. In finance department each
and every decision should be taken in such way that every pie of money should be
utilized in adequate manner.
In ACL the finance department is headed by the vice president, under him
there
are two groups of executives, one group of executives working at corporate office,
Bombay. The second group of the executives working at side and is headed by the
senior manager. Under him there are two sectional managers namely costing
manager and account manager. Under those managers there is Deputy Manager,
Assistant manager, Account Officer, Account assistants who are responsible to their
respective levels.

12. FINANCIAL PLANNING
 Financial Planning means planning of finance. In the planning of finance not only
planning is done for spending the money but also planning is done for finding and
evaluating source of finance.
 As per Government rules and regulations ACL has the financial year from July to
June and on that basis at the year, Balance sheet is prepared and net profit is found
out.
 Sources of funds in ACL are:
1. INTERNAL SOURCE:
Equity shares
Reserves & surplus.
2. EXTERNAL SOURCE:
Secured Loans
Unsecured Loans
Deposits
Debentures.

13. CAPITAL STRUCTURE
 The capital structure is made of debt and equity securities, which compromises a
firm’s finance of its assets. It is permanent financing of firm, represented by long
term’s debt plus preferred stock plus net worth.
 Capital Structure of ACL is as:
in crores...
(A) Share capital
Authorized Capital:
250, 00, 00,000 Equity shares of Rs. 2 each
15, 00, 00,000 Preference shares of Rs. 10 each
500.00
150.00
650.00
308.51
308.51
308.44
308.44
Issued Capital:
1,542,510,956 Equity shares of Rs. 2 each
Subscribed Capital:
1,542,184,436 Equity shares of Rs.2 each
TOTAL
308.44

14. (B) Reserve & Surplus:
General reserves
6,204.94
Share premium
8,496.62
Capital reserve
130.71
Capital Redemption Reserve
9.93
Subsidies
5.02
Debenture Redemption Reserve
25.00
Income & Exp. A/c
664.96
TOTAL
15537.18
(C) Loans & Funds
Secured loan
100.00
Unsecured Loan
34.63
TOTAL
134.63

15.  LISTING SHARES
NAME OF THE STOCK
EXCHANGE
STOCK CODE
1. The stock exchange, Ahmedabad
20210
2. The stock exchange, Mumbai
500425
3. National stock exchange of India
Ltd.
AMBUJACEM
4. The Calcutta stock exchange
Association Ltd.
58
5. The Delhi
Association Ltd.
07021
stock
exchange
 DISTRIBUTION OF SHARE HOLDING
The shareholding distribution of equity shares as on 31st December, 2012 is as
below:
SHARE TRANSFER SYSTEM
Share send for transfer in physical form are registered by ACL’s registered and share transfer
agents in about 15 to 20 days from the day of receipt of the documents, provided the documents
are found in order. Share under objection are returned within two weeks. The transfer
committee meets generally on a weekly basis to consider the transfer proposal.

16. DISTRIBUTION OF SHARE HOLDING
NO.
CATEGORY
OF
SHARES
Body Corporate (1.40%)
21332630
Foreign Promoters (45.64%)
69539377
Foreign investors (including FIIs )(22.91%)
34905409
OCB, NRIs (1.34%)
20416097
Mutual Funds, Banks & Institutions
25740059
(16.89%)
GDR Holders (1.90%)
28952518
Indian Promoters (0.79%)
12081909
13907991
Other (9.13%)
TOTAL (100%)
15237111380

17. THE SHAREHOLDING DISTRIBUTION OF EQUITY SHARES AS ON 31ST DECEMBER, 2012 IS AS BELOW :
SHARE HOLDING PATTERN:
NO. OF
NO. OF
PERCENTAGE
SHARE
HOLDES
SHARS
OF
SHAREHOLDIG
Less than 50
103786
2496861
0.16
51 to 100
28689
2530101
0.16
101 to 500
32205
8171107
0.53
501 to 1000
8471
6667909
0.43
1,001 to 5,000
16037
42550387
2.76
5,001 to 10,000
3212
23219473
1.51
10,001 to 50,000
1881
35204319
2.28
50,001 to 1,00,000
126
1,00,001 to 5,00,000
224
50055095
3.25
5,00,001 & above
159
1362092215
88.32
Total
194790
1542184436
100.00
NO. OF EQUITY
SHARES
9196159
0.60

18. MANAGEMENT OF FIXED ASSETS:
 Fixed assets are the tangible assets, which cannot be turned into cash on short
period of time. Management of fixed assets is the most important decision in the
field of finance for any organization and especially in cement industry, which
has its most of investment in fixed assets.
 In ACL budget committee prepares a separate budget for every department and
does continuous comparison.
 Company having the investment of 5,861.93 crores in fixed assets.

Capitalization:
Over Capitalization
Under Capitalization
 ACL is under capitalization this reflect the progressive and healthy stock of the company.

19. LEVERAGE ANALYSIS
 The employment of an asset or source of funds for which the firm has to pay a
fixed cost of fixed return may be termed as leverage. The leverage associated
with investment (asset acquisition) activities is referred to as operating leverage,
while leverage associated with financing activities is called financial leverage.
 Operating leverage is determined by the relationship between the firm’s sales
revenues and its earnings before interest and taxes. Financial leverage represents
the relationship between the firm’s earnings before interest and taxes and the
earnings available for ordinary shareholders.

20. DATA FOR LEVERAGE ANALYSIS
Particulars
Year 2012
(12 months)
(Rs. In crores)
Net Sales
7721.42
Less: Variable Cost
1. Manufacturing Expense
2. Excise Duty
3. Administrative and selling expense
2286.64
36.17
1524.67
Contribution
3847.48
3873.94
Less: Fixed Cost
1. Administrative and Selling Expense
2. Depreciation and Amortization
1751.22
296.99
EBIT
1825.73
Less: Interest
22.72
PBT
1803.01
Less: Provision for current tax
Provision for deferred tax
PAT
2048.21
584.93
-
584.93
1218.080

21.  Degree of Operating Leverage
 Contribution / EBIT
3873.94 / 1825.73
2.12
 Degree of Financial Leverage
 EBIT / PBT
=1825.73/1803.01
1.01

22.  Degree of Combined Leverage
 Contribution / PBT
3873.94 /1803.01
2.15

23. MARKETING DEPARTMENT
 Marketing management is the process of planning and executing the conception
pricing promotion and distribution of ideas goods and service to create exchange
that satisfy individuals and organization goal. Marketing management can be
practices in any market.
 AMBUJA CEMENT LIMITED has a separate department of marketing their
product in market it’s all the products are sale in open market so they have
needle Very much. Their marketing department is well established. Because in
open market, there are many company to sell each their product. They have
international trade so they have also some many expert of this type of trade.
 The function of marketing department is done by Chairman, Vice-chairman,
managing director and marketing expert in this firm.

24. MARKETING SEGMENTATION
 A company, which decides to operate from some part of market normally, cannot serve all
the customers in market. To maximum utilization of available market and resources to the
sales the company adopts the market segmentation policy.
ACL adopts market segmentation on following basis.
 Trade segment: It is the biggest segment, which covers 60% of ACL market. It is the
segment of the retailers where brand identification, quality of product and market
penetration play very important role.
 Builder: It is the second largest segment and very effective segment in cement
marketing of builders. Builders generally purchase in large quality so price and credit
policy plays vital for this segment.

Government & institution:
Government & institution agencies are the largest
consumer contribution about 25-30% of all India cement consumption.

25. PRICING POLICY
 It is not wrong to say that pricing policy is the most important and crucial decision in the
area of marketing organization. The revenues from sales depend mainly on the level of
price. Price is the factor which gives life to economic system. The entire firm has its own
pricing policy in accordance with its objective.
When it comes to setting up the price, it is the most crucial decision. Price decides the
market share and profitability. So any mistake in deciding price will affect too much to unit.
ACL
Follows two types of pricing policy.
 A. Cost oriented pricing
 B. Competition oriented pricing
In this day the price of product is Rs. 250 per bag. They give 30 days of credit facility to
reputed agency and 2% of cash discount if the payment is made with in one week.

26. CHANNEL OF DISTRIBUTION
 After production, the next problem is faced by a producer is that of selling distribution
because production is made to satisfy the needs of the costumers, so it must reach to the
costumers for whom it is made. This, a way through which goods flow the producer to the
consumer is called channel of the distribution.
The channel of distribution of ACL is as under.
 Manufacture
 Direct consumer Regional Sales officer
 Sub Officer
 Dealer
 Consumer Sub dealer
 Consumer
ACL directly to the consumer sales cement only when the order is in huge quantity. These
consumers include Government public sector organization, private organization, etc.

27. SALES PROMOTION
 Sale promotion is an activity which aims at sales expansion. Its basic object is to increase
sales through special efforts, proper selection of them provision of their training attempts
to improve relation with distributors and consumer advertising etc. are the activities which
essential aim at increasing sales promotion refer to all activities for enhancing the total
sale and demand. So in the area of modernization sales promotion of product is required.
 ACL adopts various types of sales promotion tools like discounts, gifts, and some other
incentives and sometimes company send their dealers and distributors on tour.
 ACL has adopted 3 levels of sales promotion as under.
A. At a Dealer level
B. At a Salesman level
C. At a Consumer level
Thus we can say that sales promotion is not expenditure; it is an investment which provides a
lot of rich dividend. Thus it is integral part of manufacture in efforts.

28. MARKETING RESEARCH
 Marketing is the systematic gathering of information, recording and analysis of
data, to problem concern with market. Marketing Research is basis thing needed
for the company. Without marketing research the company not able to known
which pattern, size, colors of products is demanded by the consumers about its
product. By developing a good research plan company knows that how its
product sold in market, so that is essential function.
 AMBUJA CEMENT LIMITED has an open market to sale their products in
market. So they have needed to research the market. They have a special
marketing department for all this tools to sales promotion. So this firm’s sale is
more in the market.

29. RESEARCH METHODOLOGY
 Working capital refers to that part of the firm’s capital which is required for
financing short term or current assets such as cash, marketable securities, debtors
and inventories. Funds, thus invested in current assets keep revolving fast and
are being constantly converted in to cash and these cash flows out again in
exchange other current assets. Hence, it is also known as revolving or circulating
capital or short term capital.
 The basic goal of working capital management is to manage the current assets
and current liabilities of a firm in such a way that a satisfactory level of working
capital is maintained, i.e., it is neither inadequate nor excessive. This is so
because both inadequate as well as excessive working capital positions are bad
for any business. Inadequacy of working capital may lead the firm to insolvency
and excessive working capital implies idle funds which earn no profits for the
business.

30. STATEMENT OF THE PROBLEM
 A study of working capital is of major importance to internal and external
analyst because of its close relationship with the current day to day operations of
a business. Now-a-days many companies are not performing well. Major reason
for this is underutilization of capacity and inefficiency in the technical and
financial management.
 Efficient management of working capital is the key to the success of every
business. In this study, an effort is made to analyze the working capital
management and its components in Ambuja Cements Limited. Hence the
problem is stated as “A study to assess the working capital management of The
Ambuja Cements Ltd, Bhatapara Unit.”

31. RESEARCH DISIGNS
 This is the most important aspect of research methodology. There are various
methods of designing the research. Though, I have taken Working Capital
analysis of Ambuja Cement Ltd. The research is undertaken for the measure the
strengths and weaknesses of the company. Thus, the research is exploratory in
the nature
SOURCE OF DATA
 Secondary data
Secondary data were obtained from the internal records of the AMBUJA CEMENT
LTD. from the published annual reports of the company, Journal and Magazines and
also other basic related to them analysis of financial performance. Method to assess
the company’s method of observation of the work in finance departments in
followed

32. LIMITATIONS OF THE STUDY
The limitations of the study are as follows :
 The financial statements contain only historical data and would not necessarily
reflect the future,
 The reliability and accuracy of calculations and interpretation depends very
much on the Information supplied by the company,
 Lack of professional knowledge of the researcher,
 In this short period of time, the research could not go through all aspects of
working capital,
 Authorities were reluctant to reveal full information about the working of the
company.

33. SUGGESTIONS
 company’s current assets has reduced by Rs. 19430.16 lakh due to reduction in the
investment in inventory & increase investment in sundry debtors. Company has also pays
its creditors of Rs. 15184050.55 lakh. and reduced it. And also increased its provisions.

we can see that company has reduces its overall investment of Net Working Capital by
30.04%

we can see that company has reduced its investment in C.A by 44.33% due to increasing
debtors & reduction in inventory compared to previous year.
 Looking to the total composition of current assets in percentage form in table 4. its clear
that there is a sharp increase in sundry debtors by 5.44% & increasing loan & advances by
4.06% which lead company from his operation motive and a sharp decrease in investment
in inventory by 9.47%.
 we can see that company has concentrated on paying off his creditors & increased
provision regarding government’s rules & other short term provisions.
 we can say that company has concentrated on the operating cycle & has reduced its
operating cycle days by 26 days which shows efficient management of the working capital
in the company. we can say that there is a sharp fall in the inventory turnover ratio. This is
not a favorable situation as this ratio helps company to achieve high sales by investing
minimum in W.C but here there is a sharp fall.

34.  Company is managing the credit very well. But still company has to focus more on the
sales part as sales has declined by 5.76%.
 We can say that the current asset ratio has increased which reflect w good position for the
company from external point of view, but of we look to the investment in inventory which
has decline by 9% which is harmful to the cahflow from the operations as sales in current
year has declined over previous year.
 The current asset ratio which is in favor of the company as compared to the previous year
the position of the company has improved.
 The good position of the company to the previous year as both the ratio has improved
which shows the most liquidity position of the company
 There is no improvement in the average collection period and this shows that management
is less focused here. The collection period has to be decreased otherwise it will affect
company’s current & liquidity position in future.
 Company has reduced his cash holding amount but the same was invested in debtors.
Company is not looking to the opportunity which is available in the market for the short
term investment and also company is not investing in the operations.
 The cash cycle has reduced and it comes down to 31 days which shows the efficient
management of the managers.
 The inventory holding period has also reduced by 1 day and the operation has started fast.
But still these holding period should be focused and try it to reduce,

35. CONCLUSION
 In this study an attempt has been made to analyze the working capital position of Ambuja
Cements Ltd. , Bhatapara. The study shows that the overall performance of the company is
not satisfactory. Though the company is a profit making organization, its profit is not up to
the mark with respect to the asset employed in the organization. Since the working capital
amount shows a negative To positive trend it reveals that the company is not in a position
to meet its day to day obligations. The analysis and interpretation of various data relating
to working capital management helped to reach into a conclusion that the efficiency of the
Working capital management is not adequate in 2012 and it shows a negative balance. But
this cannot be blamed, as due to recession period in Infrastructure in India & at globe
 The overall success of any company depends upon the working capital position. So it
should be handled properly because it shows the efficiency and financial strength of the
company. Therefore the company should adhere to strict measures in every sphere of its
activities to bring the company back to sufficient working capital position and improve its
financial performance

36. BIBLOGRAPHY
 Company’s internal reports
 Khan M.Y & Jain P.K Financial Management, 4th edition (2004) , Tata Mc Graw
Publishing Company Limited
 www.workingcapitalmanagement.com

37. THANK YOU