Report on Synopsis

1. Synopsis On
“FINANCIAL ANALYSIS OF INDIAN CEMENT & UCO BANK
BSELISTED SMALL CAP COMPANIES”
SUBMITTED BY
BIBHUDUTTA TRIPATHY
IBS22PGDM008
GUIDED BY
Asst. Prof. Smruti Ranjan Sahoo
In partial fulfilment of the requirement for the award of the degree o
f
PGDM
Innovation-The Business School
Mouza Tarakai, Muktapur,
Khordha - 752005

2. AGENDA
❖ INTRODUCTION
❖ COMPANY PROFILE
❖ WHAT IS THE MOTIVATION ON BEHIND THISTOPIC?
❖ LITERATURE REVIEW
❖ RESEARCH GAP
❖ RESEARCH OBJECTIVE
❖ CONCEPTUAL FRAME WORK
❖ SAMPLING AND SAMPLE SIZE
❖ SOURCES OF DATA COLLECTION
❖ CHAPTERISATION OF THE STUDY
❖LIST OF REFERENCE

3. Introduction
Financial analysis of a company involves evaluating its financial performance,
health, and viability through the examination of its financial statements and
related data. Key components of financial analysis include:
1. Financial Statements:
• Income Statement (Profit and Loss Statement): Presents revenues,
expenses, and profits over a specific period.
• Balance Sheet: Provides a snapshot of a company's assets, liabilities, and
equity at a particular point in time.
• Cash Flow Statement: Details the cash inflows and outflows, categorizing
them into operating, investing, and financing activities.
2. Ratio Analysis:
• Liquidity Ratios: Measure a company's ability to meet its short-term
obligations (e.g., current ratio, quick ratio).
• Profitability Ratios: Evaluate the company's ability to generate profits
relative to its revenue, assets, and equity.
• Financial Leverage Ratios: Assess the extent to which a company uses debt
to finance its operations.
• Activity Ratios: Analyse how efficiently a company uses its assets to
generate revenue.
3. Trend Analysis:
• Evaluate the company's financial performance over time to identify patterns,
trends, and areas of improvement or concern.
4. Comparative Analysis:
• Compare the company's financial performance with industry peers or
benchmarks to assess its relative standing.
5. DuPont Analysis:
• Decompose the return on equity (ROE) into its components, such as profit
margin, asset turnover, and financial leverage.
6. Cash Flow Analysis:
• Examine the company's ability to generate and manage cash flows, as it is
crucial for operations, investment, and debt repayment.
7. Risk Analysis:
• Assess the financial risk associated with factors like debt levels, interest
coverage, and market conditions.
8. Management Discussion and Analysis (MD&A):
• Review the company's narrative on its financial performance and future
prospects, typically found in annual reports.

4. Company Profile
Indian Cement
Company type: Public
Traded as BSE: 530005
NSE: INDIACEM
Industry: Construction
Founded: 1946
Headquarters: Chennai, Tamil Nadu, India
Key people: N. Srinivasan (Managing Director)
Rupa Gurunath: (Whole-time Director)
Products: Cement
Revenue: Increase₹4,510 crore (US$560 million) (FY2021)
Net income: Increase ₹208 crore (US$26 million) (FY2021)
Total assets: ₹11,670 crore (US$1.5 billion) (2020)
Number of employees: 3000
Website: www.indiacements.co.in
UCO Bank
Formerly: United Commercial Bank
Company type: Public
Traded as NSE: UCOBANK
BSE: 532505
ISIN INE691A01018
Industry: Banking Financial services
Founded: 6 January 1943; 81 years ago
Founder: G. D. Birla
Headquarters: UCO Bank Head Office, BTM Sarani, Kolkata, West Bengal, India
Number of locations
India: 3,205 Branches, 2,564 ATMs
International: 2 Branches in 2 countries
Area served: Worldwide
Key people: Ashwani Kumar (MD & CEO)

5. Products: Consumer banking, corporate banking, finance and insurance, investment
banking, mortgage loans, private banking, wealth management
Revenue Increase ₹20,158.97 crore (US$2.5 billion) (2023)
Operating income Decrease ₹4,340.67 crore (US$540 million) (2023)
Net income Increase ₹1,862.34 crore (US$230 million) (2023)
Total assets Increase₹300,862.98 crore (US$38 billion) (2023)
Total equity Increase ₹25,603.70 crore (US$3.2 billion) (2023)
Number of employees: 21,698 (March 2023)
ParentMinistry of Finance
(Government of India (95.39%))
Subsidiaries Paschim Banga Gramin Bank
Capital ratio 16.51% (2023)
Website: www.ucobank.com/English/home.aspx
WHATIS THE MOTIVATION BEHINDTHIS TOPIC
Investors Are Interested to Measure Financial Performance of StockExchange
Listed Companies.
Investors Perceive That Investment in Small Cap Companies Are Risky.
LITERATURE REVIEW
▶ Kalathinkal Riyas. and Ahamed Muhammad Imthiyaz (2015) in their study have
analyzed financial distress prediction using Altman Z score of Oman
cement company. They found the company was operating under safe zonehaving
higher Z score which is more than benchmark 2.99 in between 2009-2013.
▶ Mohammed Shariq (2016) studied Z Scores of cement companies in Oman
and found that Raysut Cement Company SAOG and its subsidiaries are
financially sound as they have higher Z score than the benchmark 2.99.

6. ▶ Agarwal Soumya (2018) has analyzed financial distress position of Banks
through Altman Z Score of State Bank of India, Bank of Baroda, Punjab
National Bank, Central Bank of India, IDBI Bank from 2012-2016. Z scoreof SBI,
PNB, BOB, Central Bank is comparatively low to IDBI.
▶ Shetty prameela and Shetty Ramaya (2020) have calculated Z score from
2014-19. They have found from the study that the Z- Score formula fails to
predict bankruptcy in case of Yes Bank.
Rani Meena (2022) has put Z Score Model of some Public Sector banks,
Private Sector banks and Foreign Banks from 2016-2020 and found theirZ Score.
She has categorized them safe zone, Grey Zone and Distress Zone.
RESEARCH GAP
A very few study have been conducted to study financial performance of
Banking and Cement industry by using ALTMAN Z SCORE MODEL.
RESEARCH OBJECTIVE
TO study financial performance analysis of Indian Cement by using ALTMAN Z
SCORE model.
TO study financial performance analysis of UCO Bank by usingALTMAN Z
SCORE model.
CONCEPTUALFRAME WORK
The Z-score formula for predicting bankruptcy was published in 1968
by Edward Altman.
The formula may be used to predict the probability that a firm will gointo bankruptcy
within two years.

7. CONCEPTUALFRAME WORK
The Z-score formula for predicting bankruptcy was published in 1968
by Edward Altman.
The formula may be used to predict the probability that a firm will gointo bankruptcy
within two years.
➢ X1 = Working Capital / Total assets
(WC=Current Assets-Current Liabilities)
➢ X2 = Retained Earnings / Total Assets (RE=
Total Reserve & Surplus)
➢ X3 = Earnings Before Interest and Taxes / Total Assets(EBIT=
Net Profit + Interest + Tax)
➢ X4 = Market Value of Equity / Total Liabilities
(MVE= Paid up Share Capital)
➢ X5 = Sales / Total Assets
Altman Z Score Model
❑ Z-score bankruptcy model (Manufacturing Firms):
➢ Z = 1.2X1 + 1.4X2 + 3.3X3 + 0.6X4 + 1X5
Zones of discrimination:
➢ Z > 2.99 – “Safe" zone
➢ 1.81 < Z < 2.99 – “Grey" zone
➢ Z < 1.81 – “Distress" zone

8. ❑ Z-score bankruptcy model (Non-manufacturers/ Service Sector):
➢ Z = 6.56X1 + 3.26X2 + 6.72X3 + 1.05X4
Zones of discrimination:
➢ Z > 2.6 – "Safe" zone
➢ 1.1 < Z < 2.6 – "Grey" zone
➢ Z < 1.1 – "Distress" zone
SAMPLINGAND SAMPLE SIZE
❑ Convenience and Random sampling methods are used
❑ Sample size is Two
❑ In Cement Industry we choose Indian Cement limited
❑ In Banking Industry, we choose UCO Bank
SIGNIFICANCE OF THE STUDY
The study's significance lies in aiding investors to make informed decisions by evaluating the
companies' financial strengths, risks, and growth prospects.
It also helps stakeholders understand the economic pulse of India, contributing to strategic
planning. Additionally, such analyses can guide policymakers, enabling them to formulate
effective regulations and policies to support the growth of these sectors.
In essence, this financial analysis serves as a compass for navigating investment decisions,
fostering economic development, and promoting a resilient financial environment.

9. SOURCES OFDATACOLLECTION
Secondary sources of data collection from Financial Statements of
companies.
CHAPTERISATION OF THE STUDY
1) Introduction
2) Company Overview
3) Review of Literature
4) Research Methodology
5) Research Objective
6) Research Gap
7) Results & Findings
8) Suggestions & Recommendation
9) Conclusion
10) Bibliography

10. LIST OF REFERENCES
➢ Dr Riyas. Kalathinkal and Muhammad Imthiyaz Ahamed (2015) in their study “A
study of Application of Altman Z Score model for Oman cement company”.
➢ Shariq Mohammed (2016) in his study on “Bankruptcy Prediction Usingthe Altman
Z-Score Model in Oman: A case study of Raysut Cement company SAOG and its
subsidiaries”.
➢ Soumya Agarwal (2018) “Altman Z Score with Reference to Public Sector Banks
in India”.
➢ Dr. Prameela S. Shetty and Ms. Ramya Shetty (2020) “Prediction of Bankruptcy of
a Bank through Z Score Model- A case study of Yes Bank”.
➢ Meena Rani (2022) “A comparative Study on Analyzing the Solvency of The
Indian Public, Private and Foreign Sector Commercial Banks Using Modified
Altman Z-Score”