A PROJECT REPORT ON

“ASSETS&LIABILITY MANAGEMENT”
WITH SPECIAL REFERENCE TO
KESORAM CEMENTS PVT LTD

1
 ABSTRACT

An Asset Accountability Management archetypal with a atypical action for authoritative

the accident of underfunding is presented in this article. The basal archetypal involves multi-
period decisions (portfolio rebalancing) and deals with the accepted ambiguity of investment
allotment and approaching liabilities. Therefore, it is able-bodied ill-fitted to a academic
programming approach. A academic ascendancy abstraction is activated to ascendancy the
accident of underfunding through clay a adventitious constraint. A baby after archetype and an
out-of-sample backrest are provided to authenticate the advantages of this new model, which
includes academic ascendancy constraints, over the basal archetypal and a acquiescent
investment strategy. Adding academic ascendancy constraints comes with a price. This
complicates the anatomy of the basal academic program. Indeed, the new constraints actualize a
hotlink amid variables associated with altered scenarios of the aforementioned time stage. This
destroys the accepted timberline anatomy of the coercion cast in the academic affairs and
prevents the appliance of accepted academic programming approaches, such as (nested) Benders
atomization and accelerating hedging. Instead, we administer a structure-exploiting autogenous
point adjustment to this problem. The specialized autogenous point solver, acquisitive alongside
solver, can accord calmly with such problems and outperforms the automated backbone bartering
solver CPLEX on our analysis botheration set. Computational after-effects on medium-scale
problems with sizes extensive about one actor variables authenticate the ability of the specialized
band-aid technique. The band-aid time for these non-trivial asset accountability models appears
to abound sub linearly with the key ambit of the model, such as the amount of assets and the
amount of realizations of the criterion portfolio, which makes the adjustment applicative 

2
 CONTENTS

CH. NO. PARTICULARS PAGE NO.

CHAPTER -1 INTRODUCTION

OBJECTIVES OF THE STUDY

NEED &IMPORTANT OF THE STUDY

SCOPE OF THE STUDY

RESEARCH METHODOLOGY

LIMITATIONS OF THE STUDY

CHAPTER -2
REVIEW OF LETERATURE
CHAPTER -3 INDUSTRY PROFILE
COMPANY PROFILE
CHAPTER-4
ANALYSIS & INTERRETATION OF THE STUDY
CHAPTER -5
FINDINGS
SUGGESTIONS
CONCLUSIONS
CHAPTER-6 BIBLIOGRAPHY

APPENDIX
CHAPTER-7

3
CHAPTER-1

4
 INTRODUCTION

Asset Accountability Administration (ALM) is a cardinal access of managing the antithesis area
activating in such a way that the net antithesis are maximized. This access is anxious with
administration of net absorption allowance to ensure that its akin and accident ness are accordant
with the accident acknowledgment objectives of the .

If one has to ascertain Asset and Accountability administration afterwards traveling into detail
about its charge and utility, it can be authentic as artlessly “management of money” which
carries amount and can change its appearance actual bound and has an adeptness to appear aback
to its aboriginal appearance with or afterwards an added growth. The art of able administration of
advantageous money is ASSET AND LIABILITY MANAGEMENT (ALM).

The Liberalization measures accomplished in the country resulted in advocate changes in the
sector. There was a about-face in the action access of from the commonly administered bazaar
administration to a chargeless bazaar apprenticed regime. This has put burden on the earning
accommodation of co-operative, which affected them to attack into new operational areas
thereby advertisement themselves to new risks.

As above allotment of funds at the auctioning of s appear from alfresco sources, the
administration are anxious about RISK arising out of abbreviating in the amount of asset, and
managing such risks became alarmingly important to them. Although branch are able to activate
deposits, above portions of it are top amount anchored deposits. Maturities of these anchored
deposits were not appropriately akin with the maturities of assets created out of them. The
apparatus alleged ASSET AND LIABILITY MANAGEMENT provides a bigger band-aid for
this.

ASSET LIABILITY MANAGEMENT (ALM) is a portfolio administration of assets and

accountability of an organization. This is a adjustment of analogous assorted assets with
liabilities on the base of accepted ante of acknowledgment and accepted adeptness patter.

In the ambience of, ALM is authentic as “a action of adjusting s accountability to accommodated

accommodation demands, clamminess needs and assurance requirements”. This will aftereffect

5
in optimum amount of the, aforementioned time abbreviation the risks faced by them and
managing the altered types of risks by befitting it aural adequate levels.

They can drive a banking agent to collapse by abandoning funds at a amount that exceeds its
accommodation to pay. For a lot of of this century, alone depositors who absent acceptance in s
adeptness to accord them acquired failures from liquidity. Funds are deposited primarily as a
banking of rate. Such funds are alleged “purchased money” or “headset funds” as they are
frequently bought by advisers who plan on the money board commendation ante to institutions
that boutique for the accomplished return. To analysis clamminess risk, firms accept to
accumulate the adeptness contour of the liabilities accordant with that of the assets. This
antithesis accept to be abutting abundant that a reasonable about-face in absorption ante beyond
the crop ambit does not abuse the assurance and acumen of the absolute firm.

In acute conditions, Absorption Amount fluctuations can actualize a clamminess crisis. The
aberration in the prices of banking assets due to changes in absorption ante can be ample
abundant to accomplish absence accident a above blackmail to a banking casework firm’s
viability. There’s a action of both the consequence of change in the amount and the adeptness of
the asset. This blemish of appraisal and consistent mispricing of assets, accumulated with an
accounting arrangement that did not almanac anonymous assets and losses in asset values,
created a banking crisis. Accident based basic rules pertaining to accept done little to abate the
absorption amount accident administration problem. The accommodation to canyon it of, about
is not afterwards ample cost, so the amount account tradeoff becomes complex.

• CURRENCY RISK:

The accident of barter amount animation can be declared as a anatomy of base accident a part of
currencies instead of base accident a part of absorption ante on altered securities. Antithesis
bedding comprised of abundant abstracted currencies accommodate ample buried risks through
banking advertisement systems that do not crave assets to be apparent to market. Barter amount
accident affects both the Product Markets and The Basic Markets. Ways to accommodate bill
accident accept developed in today’s acquired bazaar through the use of swaps and advanced
contracts. Thus, this accident is acquiescent alone afterwards the a lot of adult and avant-garde
accident administration address is employed

6
 OBJECTIVES OF THE STUDY

• To abstraction the Portfolio-Matching behavior of Indian Banks in agreement of attributes and

strengths of accord amid Assets and Liability

• To acquisition out the basic of Assets answer about-face in Liability and carnality versa

• To abstraction the appulse of buying over Asset Liability administration in Banks

• To abstraction appulse of ALM on the advantage of altered bank-groups

7
 NEED OF THE STUDY:

Though Basel Capital Accord and after RBI guidelines acquire acclimatized a assay for
ALM in banks, the Indian Banking adjustment has not activated the guidelines in total. The
banks have

Formed ALCO as per the guidelines; but they rarely accommodated to crop decisions. Public
Sector banks are yet to accumulated 100% of ALM abstracts because of abbreviation of
computerization in all branches. With this background, this assay aims to accretion out the cachet
of Asset Liability Administration above all bartering banks in India with the admonition of
multivariate abode of accustomed correlation. The argument agenda has after objectives to
explore:

8
 SCOPE OF THE STUDY

In this abstraction the assay based on ratios to apperceive asset and liabilities administration
beneath KESORAM CEMENTS and to analyses the advance and achievement of KESORAM
CEMENTS by application the calculations beneath asset and accountability administration based
on ratio.

>> Arrangement assay :-

A apparatus acclimated by individuals to conduct a quantitative assay of advice in a company's

banking statements. Ratios are affected from accepted year numbers and are again compared to
antecedent years, added companies, the industry, or even the abridgement to adjudicator the
achievement of the company. Arrangement assay is predominately acclimated by proponents of
axiological analysis.

>> Accepted admeasurement antithesis area :-

A aggregation antithesis area that displays all items as percentages of a accepted abject figure.
This blazon of banking account can be acclimated to acquiesce for simple assay amid companies
or amid time periods of a company.

>> Comparative antithesis area :-

A advertisement of the accepted antithesis area with those of antecedent years so trends can be
identified.

9
 METHODOLOGY

The abstraction of ALM Administration is based on two factors.

1. Primary abstracts collection:-

Abstracts empiric or calm anon from contiguous experience.

2. Accessory abstracts collection:-

Published abstracts and the abstracts calm in the accomplished or added parties is
alleged accessory data.

SECONDARY DATA COLLECTION

Collected from books regarding, journal, and administration absolute accordant advice
about ALM and Added capital sources were

• Annual address of the KESORAM CEMENTS

• Published address of the RBI guidelines for ALM

10
 LIMITATION OF THE STUDY:

This accountable is based on accomplished abstracts of KESORAM CEMENTS

• The assay is based on structural clamminess account and Ratio analysis.

• The abstraction is mainly based on accessory data.

 Accuracy:-

The assay is fabricated absolutely based on the accessory abstracts and the suggestions and
recommendations are upto the ability to the abstracts that is draw on the accessory source.

 Time:-

The time aeon is taken is of the accomplished 3 years alone and the recommendations are aswell
fabricated on the abject of the abstracts of the accomplished 3 years.

11
 METHODOLOGY OF THE STUDY

The study of ALM Management is based on two factors.

1. Primary data collection.

2. Secondary data collection

PRIMARY DATA COLLECTION:

The sources of primary data were

 The chief manager – ALM cell

 Department Sr. manager financing & Accounting

 System manager- ALM cell

Gathering the information from other managers and other officials of the KESORAM
CEMENTS

SECONDARY DATA COLLECTION:

Collected from books regarding, journal, and management containing relevant information
about ALM and Other main sources were
 Annual report of the KESORAM CEMENTS
 Published report of the KESORAM CEMENTS
 RBI guidelines for ALM.

12
 CHAPTER-2
LETERATURE of RIVIEW

13
 LETERATURE OF RIVIEW

In the accustomed course, the apparent to acclaim and bazaar risks in appearance of the asset
accountability transformation. With the liberalization in the

Indian banking markets over the endure few years and growing affiliation of calm markets and
with alien markets the risks associated with s operations accept become complex, large, acute
stragic management. are now operating in a adequately deregulated ambiance and are adapted to
actuate on their own, absorption ante on deposits and beforehand in both calm and adopted
currencies on a activating basis. The absorption ante on investments in government and added
antithesis are aswell now bazaar related. Intense antagonism for business involving both the
assets and liabilities, calm with accretion animation in the calm absorption rates, has brought
burden on the administration of to beforehand a acceptable antithesis a part of spreads, advantage
and abiding viability. Impudent clamminess administration can put balance an acceptability at
abundant risk. These pressures alarm for structured and absolute measures and not just adahoc
action. The administration of has to abject their business decisions on a activating and chip
accident administration arrangement and process, apprenticed by accumulated strategy. are
apparent to several above risks in beforehand of their business-credit risk, absorption bulk and
operational accident accordingly important than s acquaint able accident administration systems
that abode the issues accompanying to absorption rate, bill and clamminess risks.

Need to abode these risks in a structured address by beforehand their accident administration and
adopting added absolute Asset-Liability administration (ALM) practices than has been done
hitherto. ALM a part of added functions, is aswell anxious with accident administration and
provides a absolute and activating framework for measuring, ecology and managing clamminess
absorption rate, adopted barter and disinterestedness and article bulk accident of a that needs to
be carefully chip with the s business strategy. It involves assement of assorted types of risks
altering the asset accountability portfolio in a activating way in adjustment to administer risks.

The antecedent focus of the ALM action would be to accomplish the accident administration
discipline, viz., managing business afterwards assessing the risks involved.

14
The managing the beforehand and riskiness, the ALM action is added appropriately beheld as an
chip access which requires accompanying decisions about asset/liability mix and adeptness
structure.

RISK MANAGEMENT IN ALM:

Risk administration is a activating process, which needs connected focus and attention. The
abstraction of accident administration is a acclaimed investment assumption that the better
abeyant allotment are associated with the riskiest ventures. There can be no alone decree for all
times, decisions accept to be antipodal at abbreviate notice. Risk, which is generally acclimated
to beggarly uncertainty, creates both opportunities and problems for business and individuals in
about every airing of life.

Risk sometimes is carefully analyzed and managed; added times accident is artlessly ignored,
conceivably out of abridgement of adeptness of its consequences. If accident apropos accident is
assertive to occur, it may be planned for in beforehand and advised as to definite, accepted
expense. Businesses and individuals may try to abstain accident of accident as abundant as
accessible or abate its abrogating consequences.

Several types of risks that affect individuals and businesses were introduced, calm with means to
admeasurement the bulk of risk. The action acclimated to systematically administer accident
acknowledgment is accepted as RISK MANAGEMENT. Whether the affair is with a business or
an alone situation, the aforementioned accepted accomplish can be acclimated to systematically
assay and accord with risk.

STEPS IN RISK MANAGEMENT:

• Risk identification

• Risk evaluation

• Risk administration technique

• Risk measurement

15
Integrated or action accident administration is an arising appearance that recognizes the accent of
risk, behindhand of its source, in affecting a firm’s adeptness to apprehend its cardinal
objectives. The abundant accident administration action is as follows;

Risk identification:

The aboriginal footfall in the accident administration action is to analyze accordant exposures to
risk. This footfall is important not alone for acceptable accident management, which focuses on
ambiguity of risks, but aswell for action accident management, area abundant of the focus is on
anecdotic the firm’s exposures from a array of sources, including operational, financial, and
cardinal activities.

Risk evaluation:

For anniversary antecedent of accident that is identified, an appraisal should be performed. At

this stage, ambiguity of risks can be categorized as to how generally associated losses are
acceptable to occur. In accession to this appraisal of accident frequency, an assay of the size, or
severity, of the accident is helpful. Application should be accustomed both to the a lot of
apparent admeasurement of any losses that may action and to the best accessible losses that
ability happen.

RISK MANAGEMENT TECHNIQUES:

The after-effects of the analyses in additional footfall are acclimated as the abject for decisions
apropos means to handle absolute risks. In some situations, the best plan may be to do nothing.
In added cases, adult means to accounts abeyant losses may be arranged. The accessible
techniques for managing risks are GAP Analysis, VAR Analysis, Heinrich Domino approach
etc., with application of if anniversary address is appropriate.

16
Risk measurement:

Once accident sources accept been articular it is generally accessible to admeasurement the
admeasurement of the accident that exists. As animated of the all-embracing accident evaluation,
in some situations it may be accessible to admeasurement the amount of accident in a allusive
way. In added cases, abnormally those involving individuals ciphering of the amount of accident
may not crop accessible information.

Risk assay decisions:

Following a accommodation about the optimal methods for administration articular risks, the
business or alone accept to apparatus the techniques selected. However, accident administration
should be an advancing action in which above-mentioned decisions are advised regularly.
Sometimes new accident exposures appear or cogent changes in accepted accident abundance or
severity occur. The activating attributes of abounding risks requires a around-the-clock assay of
accomplished assay and decisions.

DIMENSIONS OF RISK

Specifically two ample categories of accident are the abject for classifying banking casework
risk.

• Product bazaar Risk.

• Capital bazaar Risk.

Economists accept continued classified administration problems as apropos to either The Product
Markets Risks or The Capital Markets Risks.

17
TOTAL FINANCIAL SSERVICES FIRMS RISK.
In the accustomed course, the apparent to acclaim and bazaar risks in appearance of the asset
accountability transformation. With the liberalization in the

Indian banking markets over the endure few years and growing affiliation of calm markets and
with alien markets the risks associated with s operations accept become complex, large, acute
stragic management. are now operating in a adequately deregulated ambiance and are adapted to
actuate on their own, absorption ante on deposits and beforehand in both calm and adopted
currencies on a activating basis. The absorption ante on investments in government and added
antithesis are as well now bazaar related. Intense antagonism for business involving both the
assets and liabilities calm with accretion animation in the calm absorption rates, has brought
burden on the administration of to beforehand a acceptable antithesis a part of spreads, advantage
and abiding viability. Impudent clamminess administration can put balance an acceptability at
abundant risk. These pressures alarm for structured and absolute measures and not just adahoc
action. The administration of has to abject their business decisions on a activating and chip
accident administration arrangement and process, apprenticed by accumulated strategy. are
apparent to several above risks in beforehand of their business-credit risk, absorption bulk and
operational accident accordingly important than s acquaint able accident administration systems
that abode the issues accompanying to absorption rate, bill and clamminess risks.

Need to abode these risks in a structured address by beforehand their accident administration and
adopting added absolute Asset-Liability administration (ALM) practices than has been done
hitherto. ALM a part of added functions, is as well anxious with accident administration and
provides a absolute and activating framework for measuring, ecology and managing clamminess
absorption rate, adopted barter and disinterestedness and article bulk accident of a that needs to
be carefully chip with the s business strategy. It involves assement of assorted types of risks
altering the asset accountability portfolio in a activating way in adjustment to administer risks.

The antecedent focus of the ALM action would be to accomplish the accident administration
discipline, viz., managing business afterwards assessing the risks involved.

18
The managing the beforehand and riskiness, the ALM action is added appropriately beheld as an
chip access which requires accompanying decisions about asset/liability mix and adeptness
structure.

RISK MANAGEMENT IN ALM:

Risk administration is a activating process, which needs connected focus and attention. The
abstraction of accident administration is a acclaimed investment assumption that the better
abeyant allotment are associated with the riskiest ventures. There can be no alone decree for all
times, decisions accept to be antipodal at abbreviate notice. Risk, which is generally acclimated
to beggarly uncertainty, creates both opportunities and problems for business and individuals in
about every airing of life.

Risk sometimes is carefully analyzed and managed; added times accident is artlessly ignored,
conceivably out of abridgement of adeptness of its consequences. If accident apropos accident is
assertive to occur, it may be planned for in beforehand and advised as to definite, accepted
expense. Businesses and individuals may try to abstain accident of accident as abundant as
accessible or abate its abrogating consequences.

Several types of risks that affect individuals and businesses were introduced, calm with means to
admeasurement the bulk of risk. The action acclimated to systematically administer accident
acknowledgment is accepted as RISK MANAGEMENT. Whether the affair is with a business or
an alone situation, the aforementioned accepted accomplish can be acclimated to systematically
assay and accord with risk.

STEPS IN RISK MANAGEMENT:

• Risk identification

• Risk evaluation

• Risk administration technique

• Risk measurement

Integrated or action accident administration is an arising appearance that recognizes the accent of
risk, behindhand of its source, in affecting a firm’s adeptness to apprehend its cardinal
objectives. The abundant accident administration action is as follows;

19
Risk identification:

The aboriginal footfall in the accident administration action is to analyze accordant exposures to
risk. This footfall is important not alone for acceptable accident management, which focuses on
ambiguity of risks, but as well for action accident management, area abundant of the focus is on
anecdotic the firm’s exposures from a array of sources, including operational, financial, and
cardinal activities.

RISK MANAGEMENT TECHNIQUES:

The after-effects of the analyses in additional footfall are acclimated as the abject for decisions
apropos means to handle absolute risks. In some situations, the best plan may be to do nothing.
In added cases, adult means to accounts abeyant losses may be arranged. The accessible
techniques for managing risks are GAP Analysis, VAR Analysis, Heinrich Domino approach
etc., with application of if anniversary address is appropriate.

Risk measurement:

Once accident sources accept been articular it is generally accessible to admeasurement the
admeasurement of the accident that exists. As animated of the all-embracing accident evaluation,
in some situations it may be accessible to admeasurement the amount of accident in a allusive
way. In added cases, abnormally those involving individuals ciphering of the amount of accident
may not crop accessible information.

Risk assay decisions:

Following a accommodation about the optimal methods for administration articular risks, the
business or alone accept to apparatus the techniques selected. However, accident administration
should be an advancing action in which above-mentioned decisions are advised regularly.
Sometimes new accident exposures appear or cogent changes in accepted accident abundance or
severity occur. The activating attributes of abounding risks requires a around-the-clock assay of
accomplished assay and decisions.

20
 CHAPTER III
COMPANY PROFILE
&
INDUSTRY PROFILE

21
 CHAPTER-II
INDUSTRY PROFILE
&
COMPANY PROFILE

22
 INDUSTRY PROFILE

Cement industry in India

Introduction
The Indian cement industry is directly related to the country's infrastructure sector and thus its
growth is paramount in determining the development of the country. With a current production
capacity of around 366 million tonnes (MT), India is the second largest producer of cement in
the world and fueled by growth in the infrastructure sector, the capacity is expected to increase to
around 550 MT by FY20.
India has a lot of potential for development in the infrastructure and construction sector and the
cement sector is expected to largely benefit from it. Some of the recent major government
initiatives such as development of 100 smart cities are expected to provide a major boost to the
sector.
Expecting such developments in the country and aided by suitable government foreign policies,
several foreign players such as the likes of Lafarge, Holcim and Vicat have invested in the
country in the recent past. Another factor which aids the growth of this sector is the ready
availability of the raw materials for making cement, such as limestone and coal.
Market Size
According to data released by the Department of Industrial Policy and Promotion (DIPP), cement
and gypsum products attracted foreign direct investment (FDI) worth US$ 2,984.29 million
between April 2000 and September 2016.
In India, the housing sector is the biggest demand driver of cement, accounting for about 67 per
cent of the total consumption. The other major consumers of cement include infrastructure at 13
per cent, commercial construction at 11 per cent and industrial construction at nine per cent.
To meet the rise in demand, cement companies are expected to add 56 MT capacity over the next
three years. The cement capacity in India may register a growth of eight per cent by next year
end to 395 MT from the current level of 366 MT. It may increase further to 421 MT by the end
of 2017. The country's per capita consumption stands at around 190 kg.

A total of 188 large cement plants together account for 97 per cent of the total installed capacity
in the country, while 365 small plants account for the rest of these large cement plants, 77 are

23
located in the states of Andhra Pradesh, Rajasthan and Tamil Nadu. The Indian cement industry
is dominated by a few companies. The top 20 cement companies account for almost 70 per cent
of the total cement production of the country.
Investments
On the back of growing demands, due to increased construction and infrastructural activities, the
cement sector in India has seen many investments and developments in recent times. Some of
them are as follows:
 Lafarge and Holcim plans to request for the European Commission's approval for their
possible merger. The two companies had earlier unveiled plans in April 2016 to create
the world's biggest cement group with US$ 44 billion in yearly sales.

 JSW cement plans to enter the Kerala market to cash in on the construction frenzy in the
state. JSW is presently building a three million tonnes per annum (MTPA) capacity plant
at Chitrapur in Karnataka to add to the current 5.4 MTPA capacity in South India.

 Zuari Cement through its subsidiary Gulbarga Cement Limited (GCL) plans to set up a
3.23 MT cement plant in Gulbarga, Karnataka. The company along with the cement plant
is setting up a 50 MW captive power plant in the region.

 Malabar Cements plans to set up an automated cement handling and bagging unit as well
as raw materials import facility in the Kochi port. Malabar Cements has projected a
minimum throughput of 300,000 tonnes per annum which can be extendable up to
600,000 tonnes per annum, apart from intermediate products and raw materials such as
clinker, limestone and coal.

 Reliance Cement Company (RCC), a subsidiary of Reliance Infrastructure, has entered

into the cement market of Bihar where the demand for the building material is on the rise
due to a realty boom. RCC presently has plants with total installed capacity of 5.8 MTPA.

Government Initiatives
In the 12th FiveYear Plan, the government plans to increase investment in infrastructure to the
tune of US$ 1 trillion and increase the industry's capacity to 150 MT.
The Cement Corporation of India (CCI) was incorporated by the Government of India in 1965 to
achieve self-sufficiency in cement production in the country. Currently, CCI has 10 units spread
over eight states in India.

24
In order to help the private sector companies thrive in the industry, the government has been
approving their investment schemes. Some such initiatives by the government in the recent past
are as follows:
 The Andhra Pradesh State Investment Promotion Board (SIPB) has approved proposals
worth Rs 9,200 crore (US$ 1.48 billion) including three cement plants and concessions to
Hero MotoCorp project. The total capacity of these three cement plants is likely to be
about 12 MT per annum and the plants are expected to generate employment for nearly
4,000 people directly and a few thousands more indirectly.

 India has joined hands with Switzerland to reduce energy consumption and develop
newer methods in the country for more efficient cement production, which will help India
meet its rising demand for cement in the infrastructure sector.

 The Government of India has decided to adopt cement instead of bitumen for the
construction of all new road projects on the grounds that cement is more durable and
cheaper to maintain than bitumen in the long run.

Road Ahead
With the Government of India providing a boost to the infrastructure and various housing
projects coming up in urban as well as rural areas, the cement sector has enough scope for
development in the future.

Market Size

The Indian cement sector is expected to witness positive growth in the coming years, with
demand set to increase at a CAGR of more than 8 per cent in the period FY 2015-14 to FY 2015-
16, according to the latest report titled ‘Indian Cement Industry Outlook 2016’ by market
research consulting firm RNCOS. The report further observed that India’s southern region is
creating the maximum demand for cement, which is expected to increase more in future.

The cement and gypsum products sector has attracted foreign direct investments (FDI) worth
US$ 2,656.29 million in the period April 2000–August 2015, according to data published by the
Department of Industrial Policy and Promotion (DIPP).

Investments

25
  Prism Cement Ltd has become the first Indian company to get the Quality Council of
India's (QCI) certification for its ready-mix concrete (RMC) plant in Kochi, Kerala. The
company received the certification from Institute for Certification and Quality Mark
(ICQM), a leading Italian certification body authorised to oversee QCI compliance.
 UltraTech Cement, an Aditya Birla Group Company, has acquired the 4.8 million tonne
per annum (MTPA) Gujarat unit of Jaypee Cement Corp for Rs 3,800 crore (US$ 595.61
million).
 ACC Ltd plans to invest Rs 3,000 crore (US$ 470.22 million) to expand its capacity by
nearly 4 MT a year in three eastern region states, over the next three years.
 Reliance Cements Co Pvt Ltd will set up a 3 MTPA grinding unit at an estimated cost of
Rs 600 crore (US$ 94.04 million). The unit is likely to come up at Raghunathpur in
Purulia, West Bengal.
 Reliance Cement Co, a special purpose vehicle (SPV) of Reliance Infrastructure Ltd, is
commissioning its first 5 MTPA plant in Madhya Pradesh. The project has been
implemented at a cost of approximately Rs 3,000 crore (US$ 470.22 million).
 Zuari Cement plans to set up a cement grinding unit at Auj (Aherwadi) and
Shingadgaon villages in Solapur, Maharashtra. The new unit will have a production
capacity of 1 MTPA and is expected to be operational by the second quarter of 2015.
 JSW Steel has acquired Heidelberg Cement India's 0.6 MTPA cement grinding
facility in Raigad, Maharashtra, for an undisclosed amount.

Government Initiatives

Giving impetus to the market, the Indian government plans to roll out public-private partnership
(PPP) projects worth Rs 1 trillion (US$ 15.67 billion) over the next six months. The Principal
Secretary in the Prime Minister's Office (PMO) will monitor these projects.

Also, the steering group appointed by Dr Manmohan Singh, Prime Minister of India, to
accelerate infrastructure investments, has set deadlines for the awarding of projects such as
Mumbai rail corridor and Navi Mumbai Airport, among others.

The Goa State Pollution Control Board (GSPCB) has signed a memorandum of understanding
(MoU) with Vasavdatta Cement, a company with its plant in Karnataka. The firm would use the

26
plastic waste collected by the state agencies and village panchayats from Goa as fuel for its
manufacturing plant.

Road Ahead

The globally-competitive cement industry in India continues to witness positive trends such as
cost control, continuous technology upgradation and increased construction activities.

Furthermore, major cement manufacturers in India are progressively using other alternatives
such as bioenergy as fuel for their kilns. This is not only helping to bring down production costs
of cement companies, but is also proving effective in reducing emissions with the ever-
increasing industrial activities, real estate, construction and infrastructure, in addition to the
various Special Economic Zones (SEZs) being developed across the country, there is a demand
for cement.

It is estimated that the country requires about US$ 1 trillion in the period FY 2014-13 to FY
2016-17 to fund infrastructure such as ports, airports and highways to boost growth, which
promises a good scope for the cement industry.

The 4th Annual India Cement Sector Business Sentiment Survey is nearly out and the India
Construction & Building Materials Journal provides the opportunity of an exclusive look at the
survey’s results before their sharing with the wider audiences. We are glad to be able to present
here some of the survey highlights and provide our readers with before-hand data regarding the
views and expectations of cement industry professionals.

Optimism continues to be the name of the game for the Indian cement industry – a function of
long-term trends as well as human nature. But on a closer look, the survey shows that the
optimism only runs skin deep and that it has already been eroded by an increasing percentage of
industry members who feel dissatisfied with the overall performance of the field last year.

For instance, the percentage of those who believe the industry performed “well” dropped from
43 percent in 2014 to 26 percent in 2015, while the number of respondents who believe the
industry performed poorly almost tripled from 8 percent last year to 22 percent in 2015.
Regarding the future evolution of the industry, survey participants continue to be on the

27
optimistic side and hope for a “somewhat better” or “much better” performance compared to the
last 6 months.

China tackles pollution and overcapacity

2015 has been the year that China's central planners took action against cement production
overcapacity and pollution. Consolidation plans for the industry followed falling profits for
cement producers in 2014. However, record air pollution levels in Beijing in early 2015 shut the
city down, raised public awareness and gave the government a strong lever to encourage further
industry consolidation through environmental controls. By the middle of year profits of major
producers were up but production was also up. Finally in December 2015, China started to
launch its emissions trading schemes (ETS), led by Guangdong province, to create what will be
the second largest carbon market in the world after the EU ETS.

India faces a sticky wicket

Meanwhile, the world's second largest cement producing country has faced poor profits and
growth for cement producers blamed on paltry demand, piddling prices and proliferating
production costs. Compounding that, the Indian Rupee fell to a historic low relative to the US
Dollar in mid-2015, further putting pressure on input costs. Holcim reacted to all of this by
releasing plans to simplify its presence in the country between Holcim India, Ambuja and ACC.

Sub-Saharan Africa draws up the battle lines

Competition in sub-Saharan Africa is set to intensify when Nigeria's Dangote Cement opens its
first cement plant in South Africa in early 2016. It is the first time Africa's two largest cement
producers, Dangote and South Africa's PPC, will produce cement in the same country. Future
clashes will follow across the region as each producer increasingly advances toward the other.

The Kingdom needs cement... and workers

Saudi Arabian infrastructure demands have created all sorts of reverberations across the Middle
Eastern cement industry and beyond as the nation pushes on to build its six 'economic' cities
amongst other projects. Back in April 2015 King Abdullah bin Abdulaziz Al Saud of Saudi
Arabia issued an edict ordering the import of 10Mt of cement. Then some producers started to

28
report production line shutdowns in the autumn of 2015 as they buckled under the pressure,
although they consoled themselves with solid profit rises. Now, cement sales have fallen
following a government crackdown on migrant workers that has hit the construction sector.

Competition concerns in Europe

Europe may be slowly emerging from the economic gloom but anti-trust regulators have
remained vigilant. An asset swap between Cemex and Holcim over units in the Czech Republic,
Germany and Spain has received attention from the European Commission. In the UK the
Competition Commission has decreed that further action is required for the cement sector
following the creation of new player Hope Construction Materials in 2014.

Lafarge Tarmac may now have to sell another one of its UK cement plants to increase more
competition into the market. Elsewhere in Europe, Belgium regulators took action in September
2015 and this week we report on Polish action against cartel-like activity.

Don't forget South-East Asia, Brazil or Russia!

Growth continues to dominate these regions and major sporting tournaments are on the way in
Brazil and Russia, further adding to local cement demand. Votorantim may have cancelled its
US$4.8bn initial public offering in August 2015 but it is still has the highest cement production
capacity in Brazil. Finally, Indonesia may not have had any 'marquee' style story to sum up 2015
but it continues to regularly announce cement plant builds. In July 2015 the Indonesian Cement
Association announced that cement sales growth had fallen to 'just' 7.5% for the first half of
2015.

In the most general sense of the word, a cement is a binder, a substance which sets and hardens
independently, and can bind other materials together. The word "cement" traces to the Romans,
who used the term "opus caementicium" to describe masonry which resembled concrete and was
made from crushed rock with burnt lime as binder. The volcanic ash and pulverized brick
additives which were added to the burnt lime to obtain a hydraulic binder were later referred to
as cementum, cimentum, cäment and cement. Cements used in construction are characterized as
hydraulic or non-hydraulic.

29
The most important use of cement is the production of mortar and concrete—the bonding of
natural or artificial aggregates to form a strong building material which is durable in the face of
normal environmental effects.
Concrete should not be confused with cement because the term cement refers only to the dry
powder substance used to bind the aggregate materials of concrete. Upon the addition of water
and/or additives the cement mixture is referred to as concrete, especially if aggregates have been
added.
It is uncertain where it was first discovered that a combination of hydrated non-hydraulic lime
and a pozzolan produces a hydraulic mixture (see also: Pozzolanic reaction), but concrete made
from such mixtures was first used on a large scale by Roman engineers.
They used both natural pozzolans (trass or pumice) and artificial pozzolans (ground brick or
pottery) in these concretes. Many excellent examples of structures made from these concretes are
still standing, notably the huge monolithic dome of the Pantheon in Rome and the massive Baths
of Caracalla. The vast system of Roman aqueducts also made extensive use of hydraulic cement.
The use of structural concrete disappeared in medieval Europe, although weak pozzolanic
concretes continued to be used as a core fill in stone walls and columns.
Modern cement
Modern hydraulic cements began to be developed from the start of the Industrial Revolution
(around 1800), driven by three main needs:
Hydraulic renders for finishing brick buildings in wet climates
Hydraulic mortars for masonry construction of harbor works etc, in contact with sea water.
Development of strong concretes.
In Britain particularly, good quality building stone became ever more expensive during a period
of rapid growth, and it became a common practice to construct prestige buildings from the new
industrial bricks, and to finish them with a stucco to imitate stone. Hydraulic limes were favored
for this, but the need for a fast set time encouraged the development of new cements. Most
famous was Parker's "Roman cement." This was developed by James Parker in the 1780s, and
finally patented in 1796. It was, in fact, nothing like any material used by the Romans, but was a
"Natural cement" made by burning septaria - nodules that are found in certain clay deposits, and
that contain both clay minerals and calcium carbonate. The burnt nodules were ground to a fine
powder. This product, made into a mortar with sand, set in 5–15 minutes. The success of
"Roman Cement" led other manufacturers to develop rival products by burning artificial
mixtures of clay and chalk.
30
John Smeaton made an important contribution to the development of cements when he was
planning the construction of the third Eddystone Lighthouse (1755-9) in the English Channel. He
needed a hydraulic mortar that would set and develop some strength in the twelve hour period
between successive high tides. He performed an exhaustive market research on the available
hydraulic limes, visiting their production sites, and noted that the "hydraulicity" of the lime was
directly related to the clay content of the limestone from which it was made. Smeaton was a civil
engineer by profession, and took the idea no further.
Apparently unaware of Smeaton's work, the same principle was identified by Louis Vicat in the
first decade of the nineteenth century. Vicat went on to devise a method of combining chalk and
clay into an intimate mixture, and, burning this, produced an "artificial cement" in 1817. James
Frost,orking in Britain, produced what he called "British cement" in a similar manner around the
same time, but did not obtain a patent until 1822. In 1824, Joseph Aspdin patented a similar
material, which he called Portland cement, because the render made from it was in color similar
to the prestigious Portland stone.
All the above products could not compete with lime/pozzolan concretes because of fast-setting
(giving insufficient time for placement) and low early strengths (requiring a delay of many
weeks before formwork could be removed). Hydraulic limes, "natural" cements and "artificial"
cements all rely upon their belite content for strength development. Belite develops strength
slowly. Because they were burned at temperatures below 1250 °C, they contained no alite, which
is responsible for early strength in modern cements. The first cement to consistently contain alite
was made by Joseph Aspdin's son William in the early 1840s. This was what we call today
"modern" Portland cement. Because of the air of mystery with which William Aspdin
surrounded his product, others (e.g. Vicat and I C Johnson) have claimed precedence in this
invention, but recent analysis of both his concrete and raw cement have shown that William
Aspdin's product made at Northfleet, Kent was a true alite-based cement. However, Aspdin's
methods were "rule-of-thumb": Vicat is responsible for establishing the chemical basis of these
cements, and Johnson established the importance of sintering the mix in the kiln.
William Aspdin's innovation was counter-intuitive for manufacturers of "artificial cements",
because they required more lime in the mix (a problem for his father), because they required a
much higher kiln temperature (and therefore more fuel) and because the resulting clinker was
very hard and rapidly wore down the millstones which were the only available grinding
technology of the time. Manufacturing costs were therefore considerably higher, but the product
set reasonably slowly and developed strength quickly, thus opening up a market for use in
31
concrete. The use of concrete in construction grew rapidly from 1850 onwards, and was soon the
dominant use for cements. Thus Portland cement began its predominant role. it is made from
water and sand
Types of modern cement
Portland cement
Cement is made by heating limestone (calcium carbonate), with small quantities of other
materials (such as clay) to 1450°C in a kiln, in a process known as calcination, whereby a
molecule of carbon dioxide is liberated from the calcium carbonate to form calcium oxide, or
lime, which is then blended with the other materials that have been included in the mix . The
resulting hard substance, called 'clinker', is then ground with a small amount of gypsum into a
powder to make 'Ordinary Portland Cement', the most commonly used type of cement (often
referred to as OPC).
Portland cement is a basic ingredient of concrete, mortar and most non-speciality grout. The
most common use for Portland cement is in the production of concrete. Concrete is a composite
material consisting of aggregate (gravel and sand), cement, and water. As a construction
material, concrete can be cast in almost any shape desired, and once hardened, can become a
structural (load bearing) element. Portland cement may be gray or white.
Portland cement blends
These are often available as inter-ground mixtures from cement manufacturers, but similar
formulations are often also mixed from the ground components at the concrete mixing plant.
Portland blastfurnace cement contains up to 70% ground granulated blast furnace slag, with
the rest Portland clinker and a little gypsum. All compositions produce high ultimate strength,
but as slag content is increased, early strength is reduced, while sulfate resistance increases and
heat evolution diminishes. Used as an economic alternative to Portland sulfate-resisting and low-
heat cements.
Portland flyash cement contains up to 30% fly ash. The fly ash is pozzolanic, so that ultimate
strength is maintained. Because fly ash addition allows a lower concrete water content, early
strength can also be maintained. Where good quality cheap fly ash is available, this can be an
economic alternative to ordinary Portland cement.
Portland pozzolan cement includes fly ash cement, since fly ash is a pozzolan, but also includes
cements made from other natural or artificial pozzolans. In countries where volcanic ashes are
available (e.g. Italy, Chile, Mexico, the Philippines) these cements are often the most common
form in use.
32
Portland silica fume cement. Addition of silica fume can yield exceptionally high strengths,
and cements containing 5-20% silica fume are occasionally produced. However, silica fume is
more usually added to Portland cement at the concrete mixer.
Masonry cements are used for preparing bricklaying mortars and stuccos, and must not be used
in concrete. They are usually complex proprietary formulations containing Portland clinker and a
number of other ingredients that may include limestone, hydrated lime, air entrainers, retarders,
waterproofers and coloring agents. They are formulated to yield workable mortars that allow
rapid and consistent masonry work. Subtle variations of Masonry cement in the US are Plastic
Cements and Stucco Cements. These are designed to produce controlled bond with masonry
blocks.
Expansive cements contain, in addition to Portland clinker, expansive clinkers (usually
sulfoaluminate clinkers), and are designed to offset the effects of drying shrinkage that is
normally encountered with hydraulic cements. This allows large floor slabs (up to 60 m square)
to be prepared without contraction joints.
White blended cements may be made using white clinker and white supplementary materials
such as high-purity metakaolin.
Colored cements are used for decorative purposes. In some standards, the addition of pigments
to produce "colored Portland cement" is allowed. In other standards (e.g. ASTM), pigments are
not allowed constituents of Portland cement, and colored cements are sold as "blended hydraulic
cements".
Very finely ground cements are made from mixtures of cement with sand or with slag or other
pozzolan type minerals which are extremely finely ground together. Such cements can have the
same physical characteristics as normal cement but with 50% less cement particularly due to
their increased surface area for the chemical reaction. Even with intensive grinding they can use
up to 50% less energy to fabricate than ordinary Portland cements.
Non-Portland hydraulic cements
Pozzolan-lime cements. Mixtures of ground pozzolan and lime are the cements used by the
Romans, and are to be found in Roman structures still standing (e.g. the Pantheon in Rome).
They develop strength slowly, but their ultimate strength can be very high. The hydration
products that produce strength are essentially the same as those produced by Portland cement.
Slag-lime cements. Ground granulated blast furnace slag is not hydraulic on its own, but is
"activated" by addition of alkalis, most economically using lime.

33
They are similar to pozzolan lime cements in their properties. Only granulated slag (i.e. water-
quenched, glassy slag) is effective as a cement component.
Supersulfated cements. These contain about 80% ground granulated blast furnace slag, 15%
gypsum or anhydrite and a little Portland clinker or lime as an activator. They produce strength
by formation of ettringite, with strength growth similar to a slow Portland cement. They exhibit
good resistance to aggressive agents, including sulfate.
Calcium aluminate cements are hydraulic cements made primarily from limestone and bauxite.
The active ingredients are monocalcium aluminate CaAl2O4 (CaO · Al2O3 or CA in Cement
chemist notation, CCN) and mayenite Ca12Al14O33 (12 CaO · 7 Al2O3 , or C12A7 in CCN).
Strength forms by hydration to calcium aluminate hydrates. They are well-adapted for use in
refractory (high-temperature resistant) concretes, e.g. for furnace linings.
Calcium sulfoaluminate cements are made from clinkers that include ye'elimite

(Ca4(AlO2)6SO4 or C4A3 in Cement chemist's notation) as a primary phase. They are used in
expansive cements, in ultra-high early strength cements, and in "low-energy" cements. Hydration
produces ettringite, and specialized physical properties (such as expansion or rapid reaction) are
obtained by adjustment of the availability of calcium and sulfate ions. Their use as a low-energy
alternative to Portland cement has been pioneered in China, where several million tonnes per
year are produced. Energy requirements are lower because of the lower kiln temperatures
required for reaction, and the lower amount of limestone (which must be endothermically
decarbonated) in the mix. In addition, the lower limestone content and lower fuel consumption
leads to a CO2 emission around half that associated with Portland clinker. However, SO 2
emissions are usually significantly higher.
"Natural" Cements correspond to certain cements of the pre-Portland era, produced by burning
argillaceous limestones at moderate temperatures. The level of clay components in the limestone
(around 30-35%) is such that large amounts of belite (the low-early strength, high-late strength
mineral in Portland cement) are formed without the formation of excessive amounts of free lime.
As with any natural material, such cements have highly variable properties.
Geopolymer cements are made from mixtures of water-soluble alkali metal silicates and
aluminosilicate mineral powders such as fly ash and metakaolin.

34
 COMPANY PROFILE

Kesoram Industries Limited ("KIL") was incorporated as a public company under the
name Kesoram Cotton Mills Limited ("KCML") as per the provisions of the Indian Companies
Act, 1913 and received a Certificate of Incorporation dated 18 October 1919 from the Registrar
of Companies, West Bengal ("ROC"). The name of KCML was altered to 'Kesoram Industries
and Cotton Mills Limited ("KICM") effective 30th August, 1961. Through a Fresh Certificate of
Incorporation consequent on change of Name obtained from the ROC. The name of KICM was
altered to KIL effective 9th July, 1986.

For over 40 years, Birla Shakti has helped laid the foundations of buildings everywhere. From
schools and homes, to hospitals and skyscrapers, Birla Shakti helps build the dreams of people.
When the safety of people depends on your product, you know that quality is of upmost
importance. That is why Birla Shakti practices Total Productivity Maintenance (TPM).
Combining the key principles of plant utilization, quality management and downtime
minimisation, every stakeholder’s aim is to achieve zero product defects, zero equipment
unplanned failures and zero accidents.

To support Birla Shakti’s production capabilities, a network of 491 sales engineers and 1,544
dealers are located conveniently throughout the region, so that every customer’s need can be met.

Birla Shakti’s quality and efficiency is certified by the International Organisation for
Standardisation for its world-class standards. Learn more about our certifications below.
Certification for conformation with the occupational health and safety management system in
accordance with IS/ISO 18001 : 2007 for Kesoram Cement Plant.
2 November 2016

Certification for conforming with the environmental management system in accordance with
IS/ISO 14001 : 2004 for Kesoram Cement Plant.
7 August 2015

Certification for conformation with the quality management system in accordance with IS/ISO
9001 : 2008 for Kesoram Cement Plant.31 October 2016.

Under the cement division of Kesoram Industries Limited, Birla Shakti manufactures and sells
cement. We are widely recognised for our quality, strength and technology, which has enabled us
35
to build strong working relationships and gain the trust of our customers and builders. As a mark
of our quality management best practices, we have been certified an ISO 9001 company.
Birla Shakti has two cement manufacturing plants located at Sedam, Karnataka (the
"Vasavadatta Cement Plant") and Basantnagar, Andhra Pradesh (the "Kesoram Cement Plant").
Our cement business has been in operation for over 40 years, catering to the regional demands
predoimnently in Karnataka, Andhra Pradesh and Maharashtra. Our plants are strategically
located near our leased limestone deposits in the states of Karnataka and Andhra Pradesh.
Presently, we have a combined total installed capacity of 7.25 million MT.
MISSION / VISION

MISSION

To inspire and touch lives through our services and products.

VISION

We Endeavour to shape tomorrow’s urban landscape and provide a better quality of living for all
mankind.

MANAGEMENT - KESORAM

Name Designation

Lee Seow Chuan Director

Kashi Prasad Khandelwal Director

Sudip Banerjee Director

Sudip Banerjee Director

36
 CHAPTER-4.1
DATA ANALYSIS
AND
INTERPRETATION

37
 OVERALL PROFITABILITY RATIO
OPERATING PROFIT TO OPERATING ASSETS
TABLE.4.1
YEARS OPERATING PROFIT OPERATING ASSETS RATIO IN %
Mar '19 11126.24 81121.19 7.29
Mar '18 11536.77 76315.18 6.61
Mar '17 11482.29 73092.81 6.37
Mar '16 8905.59 62407.95 7.01
Mar '15 9176.44 56650.78 6.17

INTERPRETATION: It is inferred from the above table that there is in a fluctuating trend in
the ratio. The ratio range between 7.29% in MARCH 2019. The decrease in the ratio in 2015
(6.61%) & 2011 &2016 is due to decrease in sales and also an increase in the cost of goods sold
in that year

38
DEBTORS TURNOVER RATIO = TOTAL SALES / DEBTORS
TABLE.4.2
TOTAL
YEARS DEBTORS RATIOS%
SALES
Mar '19 27073.19 81121.19 0.33
Mar '18 22396.69 76315.18 0.29
Mar '17 17914.06 73092.81 0.25
Mar '16 16035.06 62407.95 0.26
Mar '15 15171.88 56650.78 0.27

INTERPRETATION: Debtor’s turnover ratio indicates the relation between net credit sales and
average accounts receivables of the year. This ratio is also known as Debtors’ Velocity.
This ratio indicates the efficiency of the concern to collect the amount due from debtors. It
determines the efficiency with which the trade debtors are managed. Higher the ratio, better it is
as it proves that the debts are being collected very quickly.

39
 CURRENT RATIOS: CURRENT ASSETS/CURRENT LIABILITIES
TABLE.4.3

CURRENT CURRENT
YEARS ASSETS LIABILITIES RATIOS%
Mar '19 -2894.95 18999.02 -0.15
Mar '18 -1392.09 18039.57 -0.08
Mar '17 9110.49 14288.41 0.64
Mar '16 1422.25 13184.61 0.11
Mar '15 -308.29 12188.55 -0.03

INTERPRETATION:
The Above Graph Represents Current Assets and Current liabilities it shows the performance
of KESORAM CEMENTS since 2016 .It has shown negative assets in 2016 AND 2019 during
two years current assets were shown negative (-2894.95) and -1392.09.liabilities were increased
in 2015-2019.

40
 OPERATING MARGIN = OPERATING INCOME
REVENUE (PAT)
TABLE.4.4
YEARS Operating Income PAT RATIOS%
Mar '19 38199.43 5737.5 6.66
Mar '18 33933.46 6185.41 5.49
Mar '17 29396.35 6217.6 4.73
Mar '16 24940.65 4137.31 6.03
Mar '15 24348.32 4904.03 4.96

INTERPRETATION:
The above graph shows operating income were getting continuously increased from the year
2016.
Every business consist of taxes they were rejected profit after tax while showing business
auditing .It represents capital is very important for running business.

41
PAT: PBT-TAXES
TABLE: 4.5

PAT (NET INCOME)

YEARS PBT TAXES DIFF(PAT)
Mar '19 8511.13 2773.63 5737.5
Mar '18 9346.34 3160.93 6185.41
Mar '17 9128.76 2911.16 6217.6
Mar '16 6305.81 2168.5 4137.31
Mar '15 7018.9 2114.87 4904.03

INTERPRETATION:

The Above graph shows PAT for five years in the year of 2015 it was low than 2015. Profit is
very important source for enhance every business.

42
 OPERATING PROFIT MARGIN
OPERATING PROFIT TO SALES
TABLE: 4.6

Years PAT Sales Ratio in %

Mar '19 5737.5 27073.19 4.72

Mar '18 6185.41 22396.69 3.62

Mar '17 6217.6 17914.06 2.88

Mar '16 4137.31 16035.06 3.88

Mar '15 4904.03 15171.88 3.09

INTERPRETATION:
The above graph show PAT to SALES in any business sales are playing major role for gaining
profits here sales showing since 2016 increased.

43
 YEARLY SALES TREND FOR FIVE YEARS

YEARS SALES

Mar '19 27073.19

Mar '18 22396.69

Mar '17 17914.06

Mar '16 16035.06

Mar '15 15171.88

INTERPRETATION: The Above Graph Shows Sales Of Kesoram Cements For The Years Of
2015-2019.its represents yearly sales trend of cement increase and decrease.

44
 BALANCE SHEET (RS CRORE) KESORAM CEMENTS PVT LTD
 
  Mar ' 19 Mar ' 18 Mar ' 17 Mar ' 16 Mar ' 15
Sources of funds          
Owner's fund          
Equity share capital 971.41 971.41 959.41 887.41 730.79
Share application money - - 178.2 - -
Preference share capital - - - - 5,472.66
Reserves & surplus 54,238.27 51,649.95 45,807.02 36,281.34 23,501.15
Loan funds          
Secured loans 4,311.02 4,190.47 3,509.18 2,259.32 3,913.05
Unsecured loans 21,600.49 19,503.35 22,639.00 22,979.88 23,033.13
Total 81,121.19 76,315.18 73,092.81 62,407.95 56,650.78
Uses of funds          
Fixed assets          
Gross block 38,056.28 23,081.58 22,497.83 22,306.07 20,057.01
Less : revaluation reserve - - - - -
Less : accumulated depreciation 13,181.23 11,715.32 10,692.73 10,143.63 9,062.47
Net block 24,875.05 11,366.26 11,805.10 12,162.44 10,994.54
Capital work-in-progress 8,722.29 16,058.49 5,612.28 3,843.59 3,487.68
Investments 50,418.80 50,282.52 46,564.94 44,979.67 42,371.78
Net current assets          
Current assets, loans & advances 17,860.79 18,483.79 25,569.40 13,425.27 11,591.66
Less : current liabilities & provisions 20,755.74 19,875.88 16,458.91 12,003.02 11,899.95
Total net current assets -2,894.95 -1,392.09 9,110.49 1,422.25 -308.29
Miscellaneous expenses not written - - - - 105.07
Total 81,121.19 76,315.18 73,092.81 62,407.95 56,650.78
Notes:          
Book value of unquoted investments 49,434.56 49,617.55 45,899.97 44,243.24 41,665.63
Market value of quoted investments 4,904.96 4,911.43 4,914.95 4,397.79 1,491.89
Contingent liabilities 18,999.02 18,039.57 14,288.41 13,184.61 12,188.55
Number of equity sharesoutstanding
(Lacs) 9712.15 9712.14 9592.14 8872.14 7305.92

45
PROFIT & LOSS ACCOUNT------------------- IN RS. CR. -------------------
KESORAM CEMENTS
Mar ' 19 Mar ' 18 Mar ' 17 Mar ' 16 Mar ' 15
Income          
Sales Turnover 38,199.43 33,933.46 29,396.35 26,757.60 26,843.53
Excise Duty 0 0 0 1,816.95 2,495.21
Net Sales 38,199.43 33,933.46 29,396.35 24,940.65 24,348.32
Other Income 227.51 1,397.44 1,176.45 1,241.08 603.07
Stock Adjustments 404.6 220.72 173.65 -134.97 289.27
Total Income 38,831.54 35,551.62 30,746.45 26,046.76 25,240.66
Raw Materials 12,421.63 9,917.37 7,841.47 8,356.45 8,568.71
Power & Fuel Cost 2,510.17 1,990.16 1,558.49 1,383.44 1,222.48
Employee Cost 3,608.52 3,047.26 2,837.46 2,361.48 2,305.81
Other Manufacturing
Expenses 0 0 0 2,419.89 2,127.48
Selling and Admin Expenses 0 0 0 417.9 400.24
Miscellaneous Expenses 8,937.47 7,662.62 5,850.29 1,287.04 1,180.08
Preoperative Exp Capitalized 0 0 0 -326.11 -343.65
Total Expenses 27,477.79 22,617.41 18,087.71 15,900.09 15,461.15
Operating Profit 11,126.24 11,536.77 11,482.29 8,905.59 9,176.44
PBDIT 11,353.75 12,934.21 12,658.74 10,146.67 9,779.51
Interest 1,876.77 1,925.42 1,735.70 1,848.19 1,489.50
PBDT 9,476.98 11,008.79 10,923.04 8,298.48 8,290.01
Depreciation 1,640.38 1,151.44 1,146.19 1,083.18 973.4
Other Written Off 0 0 0 0 0
Profit Before Tax 7,836.60 9,857.35 9,776.85 7,215.30 7,316.61
Extra-ordinary items 0 0 0 0 0
PBT (Post Extra-ord Items) 7,836.60 9,857.35 9,776.85 7,215.30 7,316.61
Tax 2,773.63 3,160.93 2,911.16 2,168.50 2,114.87
Reported Net Profit 5,062.97 6,696.42 6,865.69 5,046.80 5,201.74
Total Value Addition 15,056.16 12,700.04 10,246.24 7,543.64 6,892.44
Preference Dividend 0 0 0 45.88 109.45
Equity Dividend 776.97 1,165.46 1,151.06 709.77 1,168.95
Corporate Dividend Tax 128.73 181.57 156.71 122.8 214.1
Per share data (annualised)          
Shares in issue (lakhs) 9,712.15 9,712.14 9,592.14 8,872.14 7,305.92
Earning Per Share (Rs) 52.13 68.95 71.58 56.37 69.7
Equity Dividend (%) 80 120 120 80 160
Book Value (Rs) 568.46 541.81 487.55 418.94 331.68

46
 CHAPTER -5
FINDINGS, SUGGESTIONS AND
CONCLUSIONS

47
 FINDINGS

Total assets were added channeled in the year 2016 (25,240.66) to (38,831.54)

 From the assay it comes to apperceive that, the amount of appurtenances awash plays a
above allotment of absolute cost.
 Operating accumulation was added in the years 2015, because they did not accept any
ascendancy over the operating expenses.

 From the assay it comes to apperceive that the sales trend has accretion every year.

 From the abstraction it comes to apperceive that the aggregation is advancement the
connected basic trend.

 From the abstraction it comes to apperceive that absolute assets about-face arrangement
decreased in the years 2015.due to the acumen that the trend of sales is not
commensurable to the trend of absolute assets

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 5.2 SUGGESTIONS

The aggregation has to advance the authoritative costs and affairs & administration costs in a
connected manner, irrespective of changes in sales volume.

 The aggregation should advance the abandoned funds in the bankable balance to acquire top
allotment on the investments.

 Manufacturing costs are to be controlled to access the gross profit.

 The aggregation has to abate the abiding debt to advance the profitability.

 The aggregation has to advance the ascendancy over operating costs in adjustment to access
the profitability.

 The aggregation has to apply on advancement the trend of the sales commensurable to the
trend of absolute assets to access the assets about-face ratio.

 The capricious allocation of the affairs and administration expenses, which are controllable,
can be reduced, to abatement the operating costs and increases the operating profit

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 5.3 CONCLUSIONS

Liquidity is an aspect that signifies the accommodation to accommodated banking obligations as

and if required. The accent of clamminess to accommodated the accepted obligations as and if
they become due for transaction can hardly be over emphasized.

A close should advance able akin of alive basic to accommodated the accepted obligations and
advance business operations.

The able administration of alive basic requires both medium-term planning and actual reactions
to the fast changes demography in the present business environment.

Working basic administration is the anatomic breadth of accounts that covers all the accepted
accounts of the firm. It is anxious with the capability of accepted assets as able-bodied the akin
of accident airish by accepted liabilities.

Efficient administration of aggregation clamminess provides amicableness about the aggregation

as able-bodied as success of the company.

KESORAM CEMENTS Limited awful maintained able clamminess and advantage standard. As
a aftereffect their advance amount of its anchored assets during the abstraction

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 BIBLOGRAPHY

Author : I.M. PANDEY

Title of the book : Financial Management
Publisher : Vikas Publishing House Pvt. Ltd.
Edition : Ninth Edition
Author : Prasanna Chandra
Title of the book : Financial Management
Publisher : Tata McGraw-Hill Co. Ltd.
Edition : Seventh Edition
Author : I.M. PANDEY
Title of the book : Financial Management
Publisher : Tata McGraw-Hill Co. Ltd.
Edition : Fourth Edition

References

 Financial Decision Making Concepts, Problems and Cases, 4th edition-John J Hampton
 An introduction to effective working capital (liquidity) management, Michael Lembach.
 Annual reports of KESORAM CEMENTS Pvt Ltd.

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