Laxmikanth Report

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Analysis Financial Statement of ACC Ltd. at Wadi-Karnataka

Internship Report of ‘Analysis of Financial Statement of ACC ltd

at Wadi-Karnataka,

Submitted to the Central University of KarnatakaIn partial fulfilment of the requirements for the award of

MBA DegreeBy

Mr. Laxmikanth S J(Register No.2011-15)

Under the guidance ofMr. Kasif Mohmed Shaikh

GM of Finance WadiACC Limited

andMr. Ganapati Sinnoor

Assistant Professor of ManagementCentral University of Karnataka, Gulbarga

Department of Business StudiesSchool of Business Studies

Central University of Karnataka, GulbargaJuly 2012

Central University of Karnataka at Gulbarga ( www.Cuk.ac.in )

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http://www.cuk.ac.in/

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DECLARATION

I hereby declare that the Report on Internship of ‘Analysis of Financial Statement of ACC Ltd at Wadi-Karnataka, is prepared by me under the guidance of Mr. KASHIF MOHMED SHAIKH GM Finance Wadi ACC Ltd and Prof. GANAPATI SINNOOR Assistant Professor of CUK is a bonafide work undertaken by me and during 07 July to 30 June and submitted to the Department of Business Studies, Central University of Karnataka in partial fulfilment of the requirements of the MBA Degree. It is not submitted to any other University or Institution for the award of any degree/ diploma.

Date: __________ Mr. Laxmikanth S J

Gulbarga


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Acknowledgement

It is difficult to acknowledge precious a debt as that of learning as it is the only debt that is difficult to repay except through gratitude. It is my profound privilege to express my sincere thanks to Mr. B D Daler, Head HR of ACC Ltd, Wadi-Karnataka, for giving me an opportunity to work on the project. Who gave me an opportunity to carry out this project and had been a constant inspiration.

I would like to thank to Mr. KASHIF MOHMED SHAIKH GM Finance Wadi plant ACC Ltd, for their constant support and guidance throughout the tenure of this project without their cooperation it would have been a difficult task to accomplish this project.

I am also thankful to my faculty guide Prof. GANAPATI SINOOR Assistant Professor of Management CUK who has provided their valuable time and effort

for guiding me for the completion of this report.

(Laxmikanth S J)Place: - GulbargaDate: -


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Contents

Chapter No. Chapter Title and contents Page Nos.

1 Introduction

1.1 Industry Profile

1.2 Company Profile

1.3 location of the ACC Ltd

1.4 History of ACC Ltd

1.5 Business Operations of the company

1.6 Time office

1.7 Technology and Product

1.8 Company vision and mission

1.9 BOD’s

1.10 Achievements of the company

1.11 Process of Cement

4 to 7

7 to 12

13 to 14

15 to 18

18 to 20

21 to 25

26 to 26

27 to 27

28 to 40

41 to 43

43 to 49

49 to 54

2 Organization Structure 54 to 58

3 SWOT Analysis

2 59 to 71

4.1

4.2 Problem Studied

72 to 95

5

7

Findings and Suggestions

Conclusion

96 to 97

98 to 98

Bibliography 99


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INDUSTRY PROFILE

Cement is a key infrastructure industry. India is one of the top 11

producers of cement in the world. The first cement company was established

in Madras in1904. . However, in 1912 – 13 three unit of ACC were established

at Porbandar in Gujarat and other two at Kavti Madhya Pradesh and

Lakheri in Rajasthan with total installed capacity of 14000 tons per annum..

Currently India is ranked second in the world with an installed capacity of

114.2 million tonnes. Industry estimated at around Rs. 18,000 crores (US $

4185 mn)

At present cement industry is more than 94 year old. During the first

half of the century India was plagued by an extremely slow growth rate and

not centil the down of independence in the era of planning. The importance of

the core sector industries cement to national development was recognized.

In the year 1961 on 24th May, cement manufacturing Association

(CMA) was formed in India. The period during 1982-1985 was boom period

for industry. By 1992 it has attained fourth position among the cement


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producing countries, behind the USA, China and Japan the year 1990-1992

was best for the cement producers.

But in 1992-1993, it has bad fortunes the demand for cement was 8%

in1991 declaimed to zero in 1992-1993.

The cement has been decontrolled from price and distribution on 1st

March, 1989 and delicensed on 25th July, 1991. However, the performance

of the industry and prices of cement are monitor regularly. The constraints

faced by the industry are reviewed in the Infrastructure Coordination

Committee meetings held in the Cabinet Secretariat under the Chairmanship

of Secretary. The Cabinet Committee on Infrastructure also reviews its

performance.

Cement is an essential item of modern development owing to its vigorous use in building and construction works. So much so that its production and consumption may be used as an index of country's progress and prosperity.

The industry has made sufficient progress in recent years and India is at present the seventh largest producer of cement in the world. The installed capacity of die industry has risen from 3.3 million tons on the morrow of Independence to 109.56 million tons in 1997-98. Over 2.5 lakli persons are employed in die industry.

Development

The first attempt to manufacture cement using sea-shell was made at Chennai in 1904, which was unsuccessful. Another attempt was made in 1912-13 when dies Indian Cement Company put up its plant at Porbandar. Later on the Katni Cement and Industrial Company Ltd. set up its cement


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factory at Katni in January 1915 and the Killick Nixon's Bundi Portland Cement Co. at Lakheri (Rajasthan) in 1916.

The World War I gave boost up to the industry and six new plants were installed during 1922-23 at Japla (Bihar), Dwarka (Gujarat), Mehgaon, Banmore and Kymore (Madhya Pradesh), and Shahabad (Karnataka). These factories togedier had a total installed capacity of 5, 59,000 tons.

A turning point came to the history of die industry in 1934 when 10 out of 11 cement companies merged into die Associated Cement Co. Ltd. (ACC). The Dalmia Cement Group, formed in 1937, installed its plants at Dalmianagar (Bihar), Dalmiapuram (Tamil Nadu), and Dalmia Dadri (Pun- jab). By 1947 there were 18 cement factories with total installed capacity of 21.15 lakh tons. After independence three new factories were installed at Talaiyudiu (Tamil Nadu), Kottayam (Kerala) and Sikka (Gujarat).

The massive construction activities during die plan period generated huge demand for the cement and consequent laying down of more factories and increase in the installed capacity and the production. Consequently, the industry raised its capacity to 29.3 million tons by the end of the seventies. It was after this period that there was quantum jump in die installed capacity during the Sixtii and Seventh Plans.

This led to partial decontrol of the cement in February, 1982 and total decontrol in March 1989. The total installed capacity rose to about 65 million tons by 1991-92. The addition to capacity took place through expansions by established producers (like ACC, India Cements, Madras Cements, Dalmia Cements and Orissa Cements) and entry of several big houses (Birlas, Larsen and Toubro, Modis, TlSCO and Raymond Woolen).

At present (2004-05) there are 128 large cement plants with an installed capacity of 152.09 million tons per annum and about 332 mini cement plants with an estimated capacity of 11.10 million tons per annum. The industry had achieved growth rate of 8.15 per cent in 2004.05. With the


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assimilation of latest technology, the cement industry has improved both in terms of quality and overall capacity utilisation.

Raw Materials

The raw materials of die cement industry include limestone (about 45 per cent CaO content), slag from steel plants, sludge from fertilizer India's per capita consumption of paints is very low at 0.23 kg as compared to the US (25 kg), France (15 kg), Japan (8 kg), Malaysia (4.8 kg), and Thailand (1.0 kg). Hence, there are good prospects for the industry. The Ministry of Environment and Forests has selected three groups of paints for eco- friendly labels. These are water-based coatings, high solids coatings and powder coatings.

Manufacturing Process

There are two methods which are used for making Portland cement-the wet method, and dry method. Use of either of the two methods depends upon the moisture content of the limestone used in making cement. The wet process is used when the moisture content of the raw material is less than 10 per cent and the cost of fuel is higher. Here more water is added during grinding to increase the moisture content to 35, 40 per cent. In dry process the moisture content of the limestone is more than 10 per cent. Here grinding is done without adding extra water. The ground matter is roasted in rotary kilns at temperature between 2500-3000°C to form clinkers. These clinkers are added with gypsum and are ground to form cement.

Distribution

Although there is hardly any state of the country which is devoid of cement plant but the localisation of the industry is largely controlled by the distribution of raw material, i.e., limestone. That is why the spatial distribution of cement plants very well coincides with the occurrence of


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limestones in the Vindhyan and Cuddapah rocks. Seven states (Madhya Pradesh, Andhra Pradesh, Tamil Nadu, Rajasthan, Gujarat, Karnataka and Bihar) mostly belonging to this belt account for about three- fourth of the installed capacity and production of cement in the country. Table 22.IX shows state-wise installed capacity, production and number of cement factories.

GROWTH AND DEVELOPMENT OF THE CEMENT

INDUSTRY IN INDIA

Cement industries constitutes an important segment of the modern

industrial economy of India. Cement is one of the highly capital intensive

industries unlike most other mineral based industries. Location of cement

plants is widely spread throughout the country where the availability of the

basic raw materials like limestone. Limestone concentration is more in the

southern region. One of the most important developments immediately after

the independence was Indian standard specification for Portland cement by

the Indian Standard Institute in 1947. The installed capacity of the industry

rose to 2.2 million tones per annum. On partition 5 of the cement producing

units went to Pakistan and the total installed capacity of 18 units that

remained in India was 1.5 million tones per annum. In 1951 for the first time

target of the cement production were planned as a part of the first Five year

plans.

As a result the production of cement increased from 2.69 million to 4

million tones. By the end of the first Five year plan were about 27 units with a


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capacity about 5 million tones. Presently in India there are 57 cement

companies with total of 120 plants. The total manpower employed is 135000.

However, cement consumption per capita in our country at about 99-

kg/ capita is one of the lowest. The world average is about 267 kg/capita.

While that of China is 450 kg/capita. Similarly in Japan it is 631 kg/capita

while in France it is 447 kg/capita. Excess capacity and slower-than-expected

demand growth have dimmed prospects for a second hike in Indian cement

prices this month, analysts said, dampening hopes that had driven producers'

shares higher. Prices in India's western region, which accounts for the biggest

market, have risen by a modest Rs 4 to Rs 158 per 50 kg bag in the past

two weeks.

"The rise has not been as much as expected because of oversupply and the big

four are Larsen & Toubro Ltd, Associated Cement Cos, Grasim Industries Ltd

and Gujarat Ambuja Cements Ltd. Earlier this month, Merrill Lynch forecast a

hike of seven rupees per bag by December 12, followed by another increase 10

days later. Inadequate pick-up in demand," said Sanjay Ladiwala, president of

Cement Stockiest and Dealers Association of Bombay. Shares in India's four

biggest cement companies rose between 10 and 33 per cent between mid-

November and their peaks in December in anticipation of a sharp price hike,

but have since fallen.


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They are now between six per cent down and 20 per cent up. The big four

are Larsen & Toubro Ltd, Associated Cement Cos, Grasim Industries Ltd and

Gujarat Ambuja Cements Ltd.

EXPORT

Apart from meeting the entire domestic demand, the industry is also

exporting cement and clinker. The export of cement during 2001-02 and 2003-

04 was 5.14 million tonnes and 6.92 million tonnes respectively. Export

during April-May, 2003 was 1.35 million tonnes. Major exporters were Gujarat

Ambuja Cements Ltd. and L&T Ltd. India exported about 8.13 million tonnes of

cement and clinker between April-January 2005-06.The export figures for

cement were 3.31 million tonnes and 4.82 million tonnes for clinker in the

same period. The cement industry has also been witnessing a spurt in exports.

India exported about 8.13 million tonnes of cement and clinker between April-

January 2008-09.The export figures for cement were 3.31 million tonnes and

4.82 million tonnes for clinker in the same period.

TECHNOLOGY LEVEL

The output of cement various type may reach the 210 million tones

mark by the year 2011 and the growth may be at a faster rate even with a

doubling of per capital consumption. It is therefore necessary that greater

attention is paid to the up gradation of technology for manufacturing different

type of cement. . In cement manufacturing is one of the fastest, probably next

to the electronics industry. Unless the industry keeps pace with changing


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technology, it is very difficult to stay ahead in the present day. Competitive

environment in terms of quality, commercial viability and demanding

ecological factors.

At present ninety three percent of the total capacity in the industry is

based on modern and environment-friendly dry process technology and only

seven percent of the capacity is based on old wet and semi-dry process

technology. One project for co-generation of power utilizing waste heat in an

Indian cement plant is being implemented with Japanese assistance under

Green Aid Plan.The induction of advanced technology has helped the industry

immensely to conserve energy and fuel and to save materials substantially.

Types of cement in India

India is also producing different varieties of cement like

The booming cement industry in India is well recognized for producing vast varieties of cement that conform to Bureau of Indian Standards (BIS). Some of the types of cement in India that boast of good demand in the market are:

There are some varieties in cement that always find good demand in the market. To know their characteristics and in which area they are most required, it will be better to take a look at some of the details given below.

Portland Blast Furnace slag cement (PBFSC): The rate of hydration heat is found lower in this cement type in comparison to PPC. It is most useful in massive construction projects, for example - dams.

Sulphate Resisting Portland cement: This cement is beneficial in the areas where concrete has an exposure to seacoast or sea water or soil or ground water. Under any such instances, the concrete is vulnerable to sulphates attack in large amounts and can cause damage


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to the structure. Hence, by using this cement one can reduce the impact of damage to the structure. This cement has high demand in India.

Rapid Hardening Portland cement: The texture of this cement type is quite similar to that of OPC. But, it is bit more fine than OPC and possesses immense compressible strength, which makes casting work easy.

Ordinary Portland cement (OPC): Also referred to as grey cement or OPC, it is of much use in ordinary concrete construction. In the production of this type of cement in India, Iron (Fe2O3), Magnesium (MgO), Silica (SiO2), Alumina (AL2O3), and Sulphur trioxide (SO3) components are used.

Portland Pozolona Cement (PPC): As it prevents cracks, it is useful in the casting work of huge volumes of concrete. The rate of hydration heat is lower in this cement type. Fly ash, coal waste or burnt clay is used in the production of this category of cement. It can be availed at low cost in comparison to OPC.

Oil Well Cement: Made of iron, coke, limestone and iron scrap, Oil Well Cement is used in constructing or fixing oil wells. This is applied on both the off-shore and on-shore of the wells.

Clinker Cement: Produced at the temperature of about 1400 to1450 degree Celsius, clinker cement is needed in the construction work of complexes, houses and bridges. The ingredients for this cement comprise iron, quartz, clay, limestone and bauxite.

White cement: It is a kind of Ordinary Portland Cement. The ingredients of this cement are inclusive of clinker, fuel oil and iron oxide. The content of iron oxide is maintained below 0.4% to secure whiteness. White cement is largely used to increase the aesthetic value of a construction. It is preferred for tiles and flooring works. This cement costs more than grey cement.


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Apart from these, some of the other types of cement that are available in India can be classified as:

Low heat cement High early strength cement Hydrophobic cement High aluminium cement Masonry cement

Production of these varieties of cement conform to the BIS Specifications. It is worth mentioning that some cement.

Profile of the ACC Ltd

INTRODUCTION OF ORGANIZATION

Organization is defined as “the planned co-ordination of the activities of

a number of people for the achievement of some common explicit purpose or

goal through of labor and function and through a hierarchy of authority and

responsibility”.


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ELEMENT OF ORGANISATION

Co-ordination

First of all it is important to recognize that the very idea of organizing.

Stems from the fact that an individual alone is unable to fulfill all of his needs

and wishes. One basis idea underlying the concept of organization therefore is

the idea of co-ordination of efforts in the service of mutual help.

Division of Goals

Division of labour refers to dividing work into operation that is narrow

in scope in order to increase efficiency with which each operation can be

performed. Having divided the work into operations each operation is

assigned to one individual or group of individual who are more fit in terms of

education skills and experience to the job. This is third idea of forming the

organization.


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Integration

The fourth and final concept needed to understand organization is

related to the idea of integration. If different people are discharging different

function is needed to ensure that all are working towards the commonly

agreed upon goals.

ACC BUILDING THE NATION

ACC has been an interesting story – one that inspired a book. ACC

was formed in 1936 when ten existing cement companies came together

under one umbrella in a historic merger – the country’s first notable merger

at a time when the term mergers and acquisitions was not even coined. The

history of ACC spans a wide canvas beginning with the lonely struggle of its

pioneer F E Dinshaw and other Indian entrepreneurs like him who founded

the Indian cement industry. Their efforts to face competition for survival in

a small but aggressive market mingled with the stirring of a country’s

nationalist pride that touched all walks of life – including trade, commerce

and business.

The Associated Cement Companies Limited, (ACC) as it .is popularly

known is India’s largest cement manufacture, with an installed capacity of

18.8million tones per annum, and sales turnover of over Rs 4000 cores.

ACC’s operations are spread throughout the country with 15

modern factories, 20 regional marketing offices, and several zonal offices.


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ACC’s full name The Associated Cement Companies Limited, the name itself

indicates the company’s origins from this unique merger. Acknowledged on

among the most trusted names incorporate India, ACC is listed one the

super Brands of India.

Over the years, ACC realized that people are as different as they are

similar. Different needs, different lives, different dreams. With its depth of

knowledge and width of experience ACC, today, is poised to fulfil the hopes

and aspirations of people across the length and breadth of the country.


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WADI: THE PLACE:-

Wadi is a small town in the Gulbarga district of Karnataka state and has only

recently become a municipal area. The ACC has two cement plants of

capacity 2.59 and 2.62 million tonnes per annum (mtpa).The cement plants

are some of the largest in the country. Wadi is also famous for its Limestone

mines. The main source of income is ACC, Railway's and Working in Lime

Stone Mines.

The growth of cement plants (ACC) and railways in the

region has brought in people from diverse regions and cultures It is suitably

situated at a distance of about 37 km from the district headquarters

Gulbarga and at a distance of about 200 km from Hyderabad in Andhra

Pradesh

Mumbai Chennai and Bangalore also are only a night journey away.

The only major centers, which are relatively inaccessible from Wadi, are

New Delhi and Kolkatta with journey times in excess of 30 hrs


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The region is a Limestone rich belt leading to the

establishment of other cement units and ancillary industries. There are

Rajashree and Vasvadatta Cement Units at Malkhed and Sedam

Respectively, both places at a relatively short distance from Wadi.

The Wadi cement works of ACC was setup in the year 1968 with an installed

capacity of 4.0 lakhs tones per annum of ordinary Portland cement clinker,

subsequently the capacity was enhanced in two phases to 27.0 Lakh tonnes

per annum. The current capacity of the commencing of new plants is 54

Lakh tones per annum.

The factory is situated at the south mental part of the

country in the state of Karnataka. It is well connected by rail and road.

The nearest important railway junction, Wadi. Wadi Cement Works

manufactures Ordinary Portland Cement Type 43, 53 grades. In this plant,

manufacturing of cement is based on “dry process”. The first step is to

form clinker from a fine ground mixture of calcareous and siliceous

material with a small amount of fluxing material, which is heated at high

temperature. In the second step, the formed clinker is ground with

gypsum to form ordinary Portland cement. Various additives like

Pozzolona; fly ash etc. may be added at this stage to produce Portland

Pozzolona Cement.


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Wadi is a small place and the places of major interest are

the ACC plants and colony themselves and the Wadi railway station which is

a junction. The rest of Wadi is rough territorial. The level of education is

fairly good in Main Wadi but poor in the surrounding villages. Health and

hygiene and drinking water are major concerns of the people

HISTORY

ACC was formed in 1936 when ten existing cement companies came

together under one umbrella in a historic merger – the country’s first notable

merger at a time when the term mergers and acquisitions was not even

coined. The history of ACC spans a wide canvas beginning with the lonely

struggle of its pioneer F E Dinshaw and other Indian entrepreneurs like him

who founded the Indian cement industry. Their efforts to face competition for

survival in a small but aggressive market mingled with the stirring of a

country’s nationalist pride that touched all walks of life – including trade,

commerce and business.


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The first success came in a move towards cooperation in the country’s

young cement industry and culminated in the historic merger of ten

companies to form a cement giant. These companies belonged to four

prominent business groups – Tatas, Khataus, Killick Nixon and F E Dinshaw

groups. ACC was formally established on August 1, 1936. Sadly, F E Dinshaw,

the man recognized as the founder of ACC, died in January 1936. Just months

before his dream could be realized.

F.E. Dinshaw The founder of ACC

ACC stands out as the most unique and successful merger in Indian business history, in which the distinct identities of the constituent companies were melded into a new cohesive organization – one that has survived and retained its position of leadership in industry. In a sense, the formation of ACC represents a quest for the synergy of good business practices, values and shared objectives. The use of the plural in ACC’s full name, The Associated Cement Companies Limited, itself indicates the company’s origins from a merger. Many years later, some stockbrokers in the country’s


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leading stock exchanges still refer to this company simply as ‘The Merger Over the years, ACC realized that people are as different as they are similar. Different needs, different lives, different dreams.

With its depth of knowledge and width of experience ACC, today, is poised to fulfill the hopes and aspirations of people across the length and breadth of the country.

HERITAGE

The house of Tata was intimately associated with the heritage and history of ACC, right from its formation in 1936 upto 2000. Between the years 1999 and 2000, the Tata group sold all 14.45 per cent of its shareholding in ACC in three stages to subsidiary companies of Gujarat Ambuja Cements Ltd (GACL), who are now the largest single shareholder in ACC.

This has enabled ACC to enter into a strategic alliance with GACL; a company reputed for its brand image and cost leadership in the cement industry.ACC's First Board Meeting in 1936 at The EsplanadeSir Nowroji B Saklatvala was the first chairman of ACC.

The first Board included distinguished luminaries of the Indian business world of the time – names like J R D Tata, Ambalal Sarabhai, Walchand Hirachand, Dharamsey Khatau, Sir Akbar Hydari, Nawab Salar Jung Bahadur and Sir Homy Mody among others.


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BUSINESS OPERATIONS OF THE COMPANY

ACC FACTS

Some ACC Facts:

Largest Network in India

15 Cement Factories

21 Marketing Offices

16 Area Offices

160 Warehouses

9,000 Dealers

Barely three years later, the fledgling company was catapulted into the fiery

cauldron of World War II, and resources were geared to meet that onslaught.

Soon after, India gained her independence. ACC was there - more than an

eyewitness to history. Helping to make history. Helping to build the new India,

waiting in the wings…


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changing the landscape, the very face of the country. ACC (The

Associated Cement Companies Limited) is India's foremost manufacturer of

cement, concrete and refractory products. Its sales turnover in 2002-03 was

Rs. 34899 million. ACC's operations are spread throughout the country with

14 modern cement factories, 11 regional marketing offices, and several zonal

offices. It has a workforce of 10,000 persons and a countrywide distribution

network of over 9,000 dealers. ACC's research and development facility has a

unique track record of innovative research, product development and

specialized consultancy services.

Since its inception in 1936, the company has been a trend-setter and

important benchmark for the cement industry in respect of its production,

marketing and personnel management processes.

Its commitment to environment-friendliness, its high ethical standards

in business dealings and its on-going efforts in community welfare

programmes have won it acclaim as a responsible corporate citizen.

ACC has made significant contributions to the nation building process by

way of quality products, services and sharing its expertise. The company's

various businesses are supported by a powerful, in-house research and

technology backup facility - the only one of its kind in the Indian cement

industry. This ensures not just consistency in product quality but also

continuous improvements in products, processes, and application areas.


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Today, the company's operations are spread throughout the country

with 15 cement factories, three refractory plants, 11 regional marketing

offices, 16 area offices, and a dedicated employee band of about 10,000

people from all corners of India. As part of its expertise, ACC has acquired rich

experience in mining,

being the largest user of limestone, and it is also one of the principal

users of coal. As the largest cement producer in India, it is one of the biggest

customers of the Indian Railways, and the foremost user of the road transport

network services for inward and outward movement of materials and

products.


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PLANTS IN INDIA


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LIST OF ACC CEMENT PLANTS , SUBSIDIARIES AND ASSOCIATES:

1. Chaibasa(Bihar) 1947

2. Chanda(Maharashtra) 1970

3. Gagal 1(Himachal Pradesh) 1984

4. Gagal 2(Himachal Pradesh) 1994

5. Kymore Mehgaon(Madhya Pradesh) 1995

6. Lakheri (Rajasthan) 1917

7. Madukkarai(Tamil Nadu) 1934

8. Sindri (Bihar) 1955

9. Wadi 1st (Karnataka) 1968

10. Wadi 2nd (Karnataka) 2002

11. Tikaria (U.P) 1999

Jamul(MadhyaPradesh)1965


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Plants & Their capacity:

S. No.

Units State Capacity (MTPA)

1 BargarhBargarh Cement Works

0.96

2 ChaibasaChaibasa Cement Works

0.87

3 ChandaChanda Cement Works

1.00

4 DamodharDamodar Cement Works

0.53

5 GagalGagal Cement Works 4.40

(Gagal I and II)

6 JamulJamul Cement Works

1.58

7 KymoreKymore Cement Works

2.20

8 LakheriLakheri Cement Works

1.50

9 MadukkaraiMadukkarai Cement Works

0.96

10 Sindri Sindri Cement Works 0.91

11 WadiWadi Cement Works

2.59

12 New Wadi PlantWadi Cement Works

2.60

13 TikariaTikaria Cement Grinding and

Packing Plant 2.31


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Time office: -----ACC Ltd at Wadi Karnataka 2012Shift Dept Shift From To Break From To

A 12 am 8 am

B 8am 4 pm

Management staff

C 4pm 12 pm/am

G 7:30am 12pm 12 pm to 1:30pm

1:30pm 5:00 pm

Payment day’s pay

Contract

Weekly off

Minimum

Wages for contract work man

Daily :

Monthly :

Management /Staff :

7th of every month

Last working day of the month

Last working day of the month

Contract work maximum :

General shift :

Other shift :

Contract work man :

7th of every month

Sunday

Based on the cycle rotation on 7th day

Every 6 month,

3 month will be changes in a minimum wages as per ministry labour &employment by central Government


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Skill Rs.

Unskilled Rs.

ORGANIZATIONL VISION


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MISSION

Leadership


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Maintain our leadership of the Indian cement industry through the

continuous modernization and expansion of our manufacturing facilities

and activities, and through the establishment of a wide and efficient

marketing network.

Profitability

Achieve a fair and reasonable return on capital by prompting

productivity thought the company.

Growth

Ensure a steady growth of business by strengthening our position in

the cement sector and also by diversifying into other areas consistent with

the overall corporate objectives.

Quality

Maintain the high quality of our products and services and ensure

their supply at fair prices.

Equity

Promote and maintain fair industrial relations and an environment for

the effective involvement, welfare and development of staff at all level.

Pioneering


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Promote research and development efforts in the areas of product

development and energy, and fuel conservation, and to innovate and

optimize productivity.

Responsibility

Fulfill our obligations to society, specifically in the areas of interated

rural development and in safeguarding the environment and natural

ecological balance.

QUALITY

In all dynamic and versatile companies, R&D forms the hub of new

activities, and is a constant partner, innovator and evaluator. In 1964, a

centralized research facility - the Central Research Station (CRS) was

established in Thane. The research station, spread over an area of 8000 sq

m has modern labs with the latest equipment and manned by highly

qualified scientists and technologists who carry out research in cement and

allied fields.

ACC has effectively pledged its reputation as the market leader in the

quality of cement. Maintaining this lead calls for harnessing the resources

and expertise of the company - from applied research and production to

marketing. Accordingly, all ACC factories are equipped with state-of-the-art

process control instrumentation and associated quality control and testing

laboratories. Trained engineers, chemists and technicians man these.


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The R&D unit at the Corporate Central Research Station, Mumbai, is

used as a reference laboratory and for diagnosis and resolving specific

trouble-shooting cases. As a result of this focus on quality, ACC cement

specifications exceed those set by BIS by a wide margin.

Today, 10 of our 13 cement plants already have the ISO 9000 & ISO

14000 certification. This demonstrates our tradition of providing reliable

and consistent quality through the application of modern technology, and

justifies the preferences of a nationwide customer base.

QUALITY POLICY OF THE COMPANY

Build quality in; do not sort bad quality out.

Manufacture and sell quality products.

Satisfy customer fully and continuously.

TPM (TOTAL PRODUCTIVE MAINTENANCE)

T.P.M stands for total productivity maintenance. It deals with

productivity, people and profit. T.P.M is a powerful tool for organization and

cultural transformation that brings in total efficiency of the plant by tackling

key aspects of plant utilization quality and down time with the ultimate goal

being zero breakdown, Zero Accident, Zero Defect, Optimum inventory and

clean environment with the involvement of each and every employee right

from top management to the bottom level person in the company.


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To transform everyone’s awareness through activities that reduces

costs and increases the overall economic effectiveness of equipment.

To eliminate breakdown and defects by practicing productive

maintenance on a plant wide basis.

PRODUCTS OF ACC

In India, ACC’s brand name is synonymous with cement. The

company manufactures Portland cements for general construction such as

ordinary Portland cement and Pozzlona Cement including fly ash and slag

based cements. It also makes cements for special application such as low

alkali, low heat sulphate-resising and oil well cements and certain concrete

repair and grouting materials.

I) Ordinary Portland Cements

A. ACC Cement (43 Grade OPC)

B. ACC SAMRAT (53 Grade OPC)

II) Composite Cements

a. ACC SURAKSHA (A Composite Cement)

b. ACC SUPER (Slag-based Blended Cement)


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http://www.acclimited.com/newsite/en/cement_products_en.asp#SURAKSHA

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http://www.acclimited.com/newsite/en/cement_products_en.asp#opc43

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III) Special Cements

i. Sulphate Resisting Portland cement (SRPC)

ii. Oil Well Cement (OWC)

iii. Low Alkali Cement

ORDINARY PORTLAND CEMENTS

A. 43 GRADE CEMENT (OPC 43 Grade)

ACC Cement is the most commonly used cement in all constructions including plain and reinforced

cement concrete, brick and stone masonry, floors and plastering. It is also used in the finishing of all types

of buildings, bridges, culverts, roads, water retaining structures, etc. What is more, it surpasses BIS

Specifications (IS 8112-1989 for 43 grade OPC) on compressive strength levels.

BIS Specifications on Compressive Strength Levels:

3 days 23 MPA

7 days 33 MPA

28 days 43 MPA

ACC Cement is marketed in specially designed 50 kg bags with golden

yellow bands along the sides.

B. ACC SAMRAT (53 Grade OPC)


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ACC SAMRAT is the brand name for a product developed recently by our

Research and Consultancy Directorate. It is an Ordinary Portland Cement

which surpasses the requirements of IS: 12269-53 Grade. It is produced

from high quality clinker ground with high purity gypsum. ACC SAMRAT

provides high strength and durability to structures because of its optimum

particle size distribution, superior crystalline structure. It is available in

specially designed 50-kg bags with oxford-blue bands along the sides.

A Composite Cement

a. ACC SURAKSHA

This is a new, specially composite cement, produced by inter grinding

higher strength Ordinary Portland Cement clinker with high quality

processed fly ash - based on norms set by the company's R&D division. This

unique, value-added product has hydraulic binding properties not found in

ordinary cements. It is available in specially designed 50-kg bags with

parrot-green bands along the sides.


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b. ACC SUPER (Slag-based Blended Cement)

ACC SUPER is a slag-based blended cement that imparts strength and

durability to all structures. It is manufactured by blending and inter-grinding

OPC clinker and granulated slag in suitable proportions as per our norms of

consistent quality. It matches 43 grade strength levels and has superior

performance characteristics when compared to Ordinary Portland Cement. It

is available in specially designed 50-kg bags with chrome-orange bands along

the sides

SPECIAL CEMENTS

A. Sulphate Resisting Portland Cement (SRPC)

The action of soluble sulphates on OPC results in softening, enormous

expansion, and finally, disintegration of the concrete structure. Sulphates

attack the tricalcium aluminate (C3A) phase of Portland cement. This

reaction leads to cracking and disintegration of concrete. Concrete can be

protected by using ACC SRPC, which conforms to IS: 12330-1988.

B. Oilwell Cement (OWC)

OWC is used for cementing gas and oil wells at high temperatures and

pressures. This cement has a class G recognition from the American

Petroleum Institute.


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Oilwell cement, used in the petroleum industry for cementing gas and

oilwells, helps:

Support the axial load of the casing string and strings to be run later

Seal intended production or injection intervals from overlying or

underlying

Permeable sections (zone isolation).

Protect the casing from damage or failure.

Support borehole through the production interval.

C. Low Alkali Cement

Low Alkali cement is used to prevent alkali-silica reaction and

consequent deterioration of concrete. This cement produces a safe concrete

when the aggregates contain reactive silica. The standards prescribe a limit

of 0.6 % of total alkalis for this purpose.

ACC produces low alkali cement with an alkali content that is very

much lower than 0.6 %. The cement conforms to BIS and ASTM

specifications. The compressive strength of this cement surpasses 43 grade

levels. ACC pioneered the distribution of cement in Bulk and Ready Mixed

concrete in India and is largest manufacturer of RMC in the country.


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ACC BULK

India's leading cement company, ACC - in a joint venture with the

government of India - has set up the most sophisticated bulk unloading

terminal at Kalamboli, Navi Mumbai, to bring its cement from the ACC plant

at Wadi in Karnataka. At the site, the cement is pumped into portable 15-ton

steel silos (supplied by ACC). Not only do these silos require less storage

space than conventional bag storage godowns, but also the silos are

designed to facilitate free-flow discharge of the cement.

This further underscores another of ACC Bulk’s characteristic -

‘untouched by hand’. And dust collecting silos safeguard against dust

pollution. The concept of bulk cement begins with the convenience of the

end-user in mind. The bulk tanker for bulk cement transport and the silo at

site to receive this cement are a welcome innovation from the conventional.


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International Comparison

Internationally, the trend is to move cement more and more in loose

form rather than bagged. In fact, over 90 percent cement in the USA, and other

European countries is transported and sold in bulk, unlike in India, where only

one percent is transported in bulk.

Area of operation – Global / National/ Regional:

Regional Marketing Offices:

1) Synthetic Ferric Oxide plant,

2) Bangalore

3) Bhopal

4) Calcutta

5) Chandigarh

6) Coimbatore

7) Kanpur

8) Mumbai

9) New Delhi

10) Patna

11) Pune


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12) Secunderabad

Overseas:

1) Yanbu Cement co. (KSA)

2) Gandil Agriculture Co, Ltd., (Sudan)

3) Iran and India Cement

4) Engineering Consultants PJS Tehran, Iran

Organization Structure

The organizational structure is very well designed by

expertise and well skilled directors who hold the authority and

responsibility to divide the employees according to their talents, skills, and

abilities etc that are being posses by the personnel’s as well as the managing

and non managing staff even the employees and workers.

In short we can categorize the organizational structure as follows:

AJB (ACC Job Band)

MS (Managerial Staff)

NMS (Non Managerial Staff)

Diploma Trainees

Management Trainees

Apprentices

Contract labours


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Board of Directors


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BOARD OF DIRECTORS


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Mr N. S. Sekhsaria

Chairman

Mr. Paul Hugentobler

Deputy Chairman.

Mr. Kuldip K kaura

CEO & MD

Managing Director.

Mr. S.M.Palia.

Mr. Naresh Chandra.

Mr Bernard Fontana

Mr. M. L. Narula.

Mr R A Shah.

Mr Shailesh Haribhakti

Competitor’s information:

1) Vasavadatta cement

2) Rajashree cement

3) Ultra tech cement

4) Ambuja cement

5) Birla plus cement


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Infrastructural Facilities:

1) School:

An English Medium School in the Company Township up to 10th

Standard of Central Board Syllabus to meet the educational requirement of the

employee’s children and a Kannada medium primary school in the Colony run

by the State Govt. was started.

2) Dispensary:

The Company has provided health center with X-ray diagnostics facility,

ECG & Pathology Lab to the benefit of the employees with qualified Medical

Officers and Para Medical staff, Visits of specialists are arranged regularly.

3) Libraries and Reading Rooms:

The company has provided libraries and Reading Rooms in the plant and

also in the Club for the benefit of employees. All kinds of News papers and

magazines are made available.

4) Literacy Programmes:

The Company is organizing literacy classes for the illiterate workers.

5) Bachelor’s housing:

The Company provides Bachelors accommodation for the fresher who join

as trainees and a staff Bachelors Mess is being run by the bachelor staff

themselves.


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6) Bus Facility:

The Company provides bus facility to Gulbarga and Wadi town on

Saturday and Sunday respectively every week for the benefit of the Employees

for shopping purpose.

7) Sports & Games:

The Sports Club provides recreation for the employees and their family

members and has indoor game facilities and out door game facilities for Volley

ball, Football, Hockey, Cricket, etc. It also has a reading room and a library.

ACC – ACHIEVEMENTS

Year Achievement

1936 The Associated Cement Companies Limited incorporated on August 1st

1982 Commissioning of the first 1 MTPA (million tonne per annum) plant in the country at Wadi, Karnataka.

2001 Commissioning of the new Wadi plant of 2.6 MTPA capacity in Karnataka, the largest in India, and among the largest sized kilns in the world.

2005 Financial accounting year of the company changed to calendar year January-December.

2006 ACC announces new Workplace policy for HIV/AIDS

2006 Change of name to ACC Limited with effect from September 1, 2006 from the Associated Cement Companies Limited.

2006 ACC receives good corporate Citizen Award 2005-06 from Bombay Chamber of Commerce and Industry


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2006 New corporate brand identity and logo adopted from October 15, 2006

2006 ACC establishes Anti Retroviral Treatment Centre for HIV/AIDS patients at Wadi In Karnataka- the first ever such project by a private sector company in India.

2007 ACC partners with Christian Medical College for treatment of HIV/AIDS in Tamil Nadu.

2008 ACC wins CNBC-TV18 India business Leader Award in the category India Corporate Citizen of the year 2008.

2008 The institute of Charted Accountants of India (ICAI) Conferred on ACC its gold shield For being best in the ‘ICAI Award for Excellence in Financial reporting for 2008.

2009 Federation of Indian mineral industries(FIMI) National Environment Award to ACC wadi Limestone Mines.

2009 Safety Innovation Award 2009 by Engineers to ACC Wadi (Expansion Project).

2009 National Award for Excellence in Water Management from Confederation of Indian Industry(CII) to ACC Wadi.

2010 Confederation of Indian Industry (CII) Energy Award to ACC Wadi. Confederation of Indian Industry (CII) Environmental Best Practices Award to ACC Damodhar.

2011 India Manufacturing Excellence Awards 2011 - Gold Certificates of Merit to ACC Lakheri, Gagal, Wadi and Silver to Jamul by The Economic Times and Frost & Sullivan.

2012 Performance Excellence Trophy to DAV ACC Gagal Sr Secondary School

2012 Best in Class Manufacturing Awards 2011-12 - Manufacturing Leadership in Cement by Indira College of Engineering & Management, Pune


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PRODUCTS:--

Raw Materials of cement

Lime stone Iron or Hemadite

Alumnus literate

Coal

Fly Ash

Checal Gypsum

Process of cement:---


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50

MCKINSEY’s 7S framework


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The 7-s model is better known as McKenzie 7-S.This is because the persons who

developed this model, Tom Peters and Robert Waterman, have been consultants

at McKenzie. They published their 7-S model in their article “structure Is Not

Organization” (1980) and in their books “The Art of Japanese

Management”91981) and” In Search of Excellence” (1982)

The model starts on the premise that an organization is not a Structure but

consists of seven elements namely:

1. STRUCTURE

2. SYSTEM

3. STRATEGY


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4. SKILLS

5. STYLE

6. STAFF

7. SHARED VALUE

These seven elements are distinguished as, so called, hard S’s and soft S’s.

The hard elements are feasible and easy to identify. They can be found in

strategy statements, corporate plans, organizational charts and documentation.

The four soft S’s however, are hardly feasible. They are difficult to

describe since capabilities, values, and elements of corporate culture are

continuously developing and changing. They are highly determined by the

people at work in the organization. Therefore, it is much more difficult to plan or

to influence the characteristics of the soft elements

DESCRIPTION

THE HARD S’s

Strategy: Actions of company plans in response to or anticipation of

changes in its external environment.

Structure : Basis for specialization and co-ordination influenced primarily

by strategy and by organization size and diversity.

System : Formal and Informal procedures that support the strategy and

structure.

THE SOFT S’s


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Style/culture : The culture of organization consists of two components:

o Organization culture : the dominant values and beliefs, and norms,

which develop features of organizational life.

o Management style: Fundamental responsibility of managers.

Staff: Human Resource Management-processes used to develop managers,

ways of basic values of management cadre and ways of introducing young

recruits to the company.

Skills: The distinctive competencies and ways of expanding or shifting

competencies.

Shared Value: Guiding concepts, fundamental ideas around which a

business is built must be simple, have great meaning inside the

organization even though outsiders may not see or under

STRUCTUREStructure: A company’s structure affects its strategic planning and its

ability to change. A company’s structure may have a customer or geographical

focus. It contains the salient features of the organizational chart and

interconnections within the organization.

SWOT ANALYSIS


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STRENGTHS

The main strength of ACC is

Having largest network in India.

It has its own power plant in wadi plant.

Having 20 marketing offices in India.

It is having over 9000 dealers throughout the country.

Production of ACC cement has been increasing yearly. After merging

with Holcim group of Switzerland in 2005


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It has16 Cement Production Factories throughout the country

It has 21 Area Offices&160 Warehouses throughout the country.

It gets fly ash at free of cost from Raichur power plant

Trade mark of ACC Certification by ISO-9001

Own railway wagons to transport. ACC has constructed its own siding which

connects to the railway junction.

Finally the good understanding between Management and Employees.

WEEKNESS

The operating expenses of the company are comparatively high which

may affects in its profit earning capacity.

The technology used in the old wadi plant is not latest one compared to

new wadi plant

The old wadi plant is not modernization compared to new wadi plant

Training as stated one of the weak point because unskilled worker

consumes more time and money

The industry matches quite well with international standards in terms

of energy and pollution norms, but the average performance of the Indian

industry is lagging behind.


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The competitors are doing much promotional activity rather ACC

that’s why it’s facing more problems in selling products in market.

OPPORTUNITIESThe ACC Company has the opportunity to become the market leader in

cement industry

It is also have opportunity to expand its market share by introducing

new products with reasonable price.

It has opportunity to increase its production by adopting latest

technology.

ACC Company expands their branches in other states also.

ACC company gives loan to the employees at the low rate of interest

As ACC has stated new plant in wadi this gives more opportunities to

unemployed people

ACC company provides hospital facilities and also a monthly check

ups to the employees


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Roads are undergoing through the transformation process through

which the traditional method of road building will be replaced by modern

concrete methods

THREATS

Competition with other cement industry

Changes in technology level may affects the company

Fluctuation in Government policies may affects the company

Price competition with other cement companies...

Fluctuation in government polices too may affect the Company.

Containing the cost-push to maintain competitiveness and profitability of the industry in the long term will be a big challenge.

Increased in transportation cost and shortage of coal can also affect to the company.

LEARNING EXPERIENCE

Working in ACC Ltd is both a pleasure and a challenge because of the

prevailing work atmosphere that believes in the maximum work with joy. It has

left me with valuable insights as for as the corporate world is concerned. The

very fact that all the employees are taken special care automatically motivates its

employees to constantly learn and reinvest themselves and also boosts up their

morale.


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The first and the foremost learning experience of mine was that I could

understand the practical functioning of an organization.

It is always true that ‘Efforts of the employees is always directly

proportional to the Success of a company.” Hence I understood & learnt the

peak of dedication I need to have, to achieve success in corporate world.

Since I worked in a team, I have learnt the skills, necessary to become a

good team player.

In ACC I learnt the methodology of handling work-pressure by various

techniques the company has adopted.

I learnt the actual role of HR department, which not only supports its

employees’ physical health but also its psychological health


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Organization Structure

ACC Ltd Wadi Dept


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General finance


FINANCE DEPARTMENT

Deputy Manager Deputy Manager

Assist manager Assist manager Assist manager

Officers Officers Officers Officers

Financial management is the one of the four important areas of the

management .the major objective of any business firm is to make profit for its

proprietor. To reach the objective the firm purchases the various factors of


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production and then produces the output to sale, all these process requires funds.

Finance is said to be circulatory system of the economic body of the firm.

Financial management is the administrative function which relates to

management of cash & credit. The central feature of the financial management is

the formulation of the firm’s strategy in determining the most effective use of

funds and selecting the most favourable sources of additional funds that the firm

would require in future.

Finance is one of the major elements which activate the overall growth of

the organization. Finance is very important to carry out each and every activity

in the organization

Finance is one of the key factors which help the organization to fulfill all

its needs and achieve its goals. It is the life blood of the business; hence it

requires a lot of efforts to manage it well. The basic functions of finance

department are procurement of funds at the right time and optimum utilization of

funds. A well knit financial system directly contributes to the growth of the

organization.

The finance and accounts department consists of the following sections


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Petty cash section

Cash section

Bills Receivable section

Bills Payable section

EDP section (ELECTRONIC DATA PROCESSING)

Material Accounts section

Costing section

Establishment section

General Accounts section


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FUNCTIONS IN DETAIL

PETTY CASH SECTION

Petty cash section is managed by the cashier. Cash is drawn from the banks

every day towards day’s estimated petty expenses. A petty cash register is

maintained wherein cash drawn from the banks along with previous day’s cash

balance available are carried forward.

CASH SECTION

Cash book is maintained by recording day to day transactions such as

payments received deposited to banks, payments to suppliers and other statutory

payments, salaries & wages, conveyance, medical, travel advances etc.

BILLS RECEIVABLE SECTION

Collection of dues for supply of equipments and services is the responsibility

of marketing division. BRS will account all the payments received from the

customers and send age-wise analysis of dues from customers to marketing division

with reference to invoices raised on them and payments received is done by BRS.


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BILLS PAYABLE SECTION

All bills of suppliers of equipments and raw materials are accounted by this

section. Bills received from the suppliers will be correlated with the original

inspection report received from the stores/inspection department and bills are

passed by allotting respective party codes in the bills payable voucher and also

respective code numbers of the materials or services received.

EDP (ELECTRONIC DATA PROCESSING) SECTION

All transactions relating to receipt/supply of materials, equipments and

services are duly codified. All jobs connected to accounts namely sales, purchase,

debtors, cash and bank transactions, wages and salaries are dealt by this section.

The input data from various divisions are received and processed and finally the

computerized accounts are submitted to F&A department.

MATERIAL ACCOUNTS SECTION

Details about incoming materials are collected and processed in this section

and accounted according to code numbers that are already allotted to various

materials and components. Stocks of materials are periodically checked with

reference to Kardex maintained in the stores division.


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COSTING SECTION

The company does not have exhaustive cost accounting system due to reasons that

input data are not regularly fed by the production and planning departments. Cost

sheets are prepared on the overhead recovery rates prepared on the basis of the

budget proposals.

ESTABLISHMENT SECTION

Wages and salaries, PF accounts, ESI accounts etc are maintained in this

section. PF accounts are maintained by the PF trust formed by the management.

Trust accounts are prepared yearly and adopted in the Trustee meeting.

GENERAL ACCOUNTS

General ledger wherein all transactions duly codified are accounted towards

all receipts and payments. In addition to this, subsidiary ledgers are also maintained

such as sales day book, purchase day book, journals register. Budget is drawn in the

beginning of the year and the expenditure with reference to the budget already

approved and adopted by the board is verified periodically.


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OUTLOOK

Overall, the cement industry recorded a growth rate of about 7.1% during the

current half year ended June-07 as compared to the corresponding previous period.

The GDP growth of the country continues to be strong. As the country needs more

investment in housing and infrastructure sector, cement industry needs to gear up to

service the growing needs. We expect that the industry will receive adequate

support from all stakeholders and statutory authorities in meeting this challenge.

STATEMENT OF THE PROBLME:

Financial Statements are indicators of profitability and financial soundness

of the organization. To evaluate the financial soundness of the company, it is

necessary to analyze and interpret the financial statement such as profit and loss

account and balance sheet.

HUMAN RESOURCE MANAGEMENT

MEANING

Human resource management (HRM) is a management function that helps

manager recruit, select, train, and develops members for an organization.

Obviously, HRM is concerned with the people’s dimension in organizations.

DEFINITION:


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Management is the planning, organizing, directing, and controlling of the

procurement, development, compensation , integration ,maintenance and

separation of human resource to the end that individual ,organizational, and

social objectives are accomplished. Thus HRM refers to a set of programmes,

functions and activities designed and carried out in order to maximize both

employees as well as organizational effectiveness.

ACC has a large workforce of about 9,000 people, comprising experts in various

disciplines assisted by a dedicated workforce of skilled persons. ACC

employees, referred to as the ACC Parivar, come from all parts of the country

and belonging to a variety of ethnic, cultural and religious backgrounds. ACC

employees display a strong sense of loyalty to the Company and their special

stellar qualities as ‘value-adding’ human capital are well known in the industry

ACC has clearly stated guidelines concerning recruitment, termination, career advancement, performance appraisal, professional and employee ethics and code of conduct. The Company’s personnel policies and processes enshrine equal opportunities to all and non-discrimination with regard to gender, caste, creed, ideology or other opinion, whether social, political or religious. Also ensured is a due process for employee consultation and participation in organizational development and policy formulation.

Recruitment

Recruitment in ACC is a very fair and transparent process with adequate opportunities to look for suitable candidates internally as well as from outside. Applicants are generally invited on the basis of specific advertisements in newspapers and websites. A Committee of officers called the Central Recruitment Committee handles the entire recruitment process comprising screening of applications, preliminary short-listing, interviews and final selection. Every attempt is made to make the selection process as objective as


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possible by incorporating tests of competence. In some cases, outside consultants are retained. All decisions of the recruitment committee are recorded in respect of each candidate. Candidates are informed of their short-listing and selection immediately after the interview or at the earliest thereafter.

Performance management

The Company’s performance management system is in itself a benchmark that provides ample opportunities and motivational incentives to employees so as to reward and retain good talent within the Company. These incentives include Performance Linked Incentives, Good Work Awards, Letters of Appreciation, Special Increments, and Promotions, Nomination to external training programmes in India and abroad, public felicitation and appreciation. Some plants have Best Employee and Employee of the Month Awards and recognition. Competent employees and those who display aptitude are invited to become Trainers themselves and receive Train the Trainer facilitation

Training & Development

Our new Performance Management System incorporates a process called Competency Assessment and Training and Developmental Needs wherein appraisers are specifically called upon to identify and assess training needs of employees at specific intervals that do not coincide with Performance Appraisals. This is so that training needs can be assessed objectively. Training is imparted to take care of an individual’s career development as well as functional and skill enhancement. Competency and Development training inputs include Skill and general performance enhancement, communication skills and Career development. Functional training needs are identified and conducted by functional departments while Corporate HR organizes competency and developmental inputs.

Employee welfare & perquisites

Employee welfare receives prime attention at ACC. We have several schemes for general welfare of employees and their families. These cover education,


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healthcare, retirement benefits, loans and financial assistance and recreation facilities.

ACC townships have excellent schools that are often the best in the district. Education at these schools is subsidized for employees’ wards. We offer attractive scholarship allowances for children studying at places away from their parents, merit scholarships for outstanding children and financial assistance for employees’ children to pursue higher professional education.

Liberal medical benefits are made available to employees and their family members by way of reimbursements towards normal medical treatment, domiciliary treatments and special sanctions for serious illness. Each of our townships has well-equipped health care centres with qualified medical staff and facilities, ambulance, referrals and tie-ups with reputed hospitals for specialised treatment. In addition, there are regular health checkups, camps and programmes

Employees are eligible to apply for loans and financial assistance for various purposes such as purchase of assets, residential premises as well as a scheme that provides for supply of cement at subsidized rates to those building their own houses. At our cement plants and factories, employees are provided furnished and unfurnished accommodation based on their entitlements. At many locations, the employees are given free electricity, free water supply and free bus facility for nearby places and schools. These houses are well-maintained and periodically upgraded.

Employee SatisfactionIn addition to periodic internal Employee Satisfaction Surveys, we participate in Employee Satisfaction and Work Places Surveys conducted by reputed external agencies and organisations like Hewitt Associates Grow Talent. And from time to time, ACC has also retained reputed firms to study our internal work environment and employee policies and suggest areas of improvement. We share below salient points of the latest survey of employees:

People are treated fairly regardless of religion and gender ACC is a safe place to work Management is competent in running business Employees feel good about what we do for society


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Proud to tell others I work here Management thinks positively

The overall findings show significant job satisfaction at all levels as also deep respect for the company, its performance management system and its overall business performance.

OBJECTIVES OF THE STUDY:

1. To study the liquidity position of the Associated Cement company Ltd,

WADI.

2. To know the operating efficiency of the Associated Cement Company

Ltd, WADI.

3. To evaluate the Various ratios of Associated Cement Company Ltd,

WADI

4. To high light the overall financial performance of Associated Cement

Company Ltd, WADI

5. To compare the actual ratios with the standards or ideals of Associated

Cement Company LTD, WADI

6. To study and compare present performance with past performance

SCOPE OF THE STUDY:

The study will help in analyzing the ratios for a period of five years i.e.

from Dec 2007 to Dec2011 of ACC limited Ratios may prescribe as practical

standards, as they are several in numbers for each element of study. The study

helps us in finding out how well the organization is managing them.


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The study has got importance because the absolute accounting data cannot

provide meaningful and interpretation. Thus, ratio analysis being the powerful

analytical tool, which helps the management to analyze the performance of the

firm and to make further projections, and also for the smooth functioning of the

business firm.

There is always a need and much importance will be given for the past

financial data, which is compared with the present data. By comparing the past

data with the present will give a good picture of the financial fluctuations of the

firm.

Financial Statement analysis is useful in following ways;

Useful in Financial position analysis.

Useful in simplifying accounting figures.

Useful in assessing the operational efficiency.

Useful in forecasting purposes.

Useful in locating the weak spots of the business.

Useful in comparison of performance.

RESEARCH METHODOLOGY:

Research is organization’s inquiry designed and carried out to provide

information to solve the problem. In fact is it scientific investigation of a certain

problems.


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‘Research is the process of systematically obtaining accurate answer to

significant and pertinent question by the use of scientific method in gathering

and interpreting information”.

METHODOLOGY OF THE STUDY:

DATA COLLECTION:-

The data collection is one of the important aspect in the research design

because, it is the way that how we can get answer to the research questions.

DATA DETAILS:-

Data relating to working capital is required for the study i.e. about the

sources of funds and application of funds and balance sheet for calculating

various ratios.

The data is collected in two ways:

Primary Data


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Secondary Data

a) Primary Data:-

Personal interview i.e. visit to the department, quality and qualitative data

was gathered during interaction with the finance department.

b) Secondary Data:-

The secondary data is another form of data collection, where the data is

collected from the existing records, company manual and form previously

carried out research work and also through internet.

RESEARCH INSTRUMENTS:-

All the details are collected from secondary sources only. Secondary data

includes, the annual reports, financial reports of the company etc., discussion

with concerned officials has also helped to verify and evaluate the variations and

results either to confirm it

LIMITATIONS OF THE STUDY:-

1. The study covers a period of 5 years with the available sources i.e. from

Dec 2007 to Dec 2011

2. Two month being a very short time, I have done a study that I feel to be

comprehensive and possible in this time. However, some other details of

methods of analysis could definitely be found which I have missed out

there.


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3. Inter firm and intra firm comparison is not possible.

4. Interactions with the company professionals were limited due to their busy

schedule.

5. Limitations of historical accounts, Conclusions will be drawn based on

theory and supplemented by figure wherever feasible.

ACC Ltd BALANCE SHEET 2011 TO 2007

Rs.crore

Balance sheet - ACC Ltd

Particulars Dec'11 Dec'10 Dec'09 Dec'08 Dec'07

Liabilities12 Months

12 Months12 Months12 Months12 Months

Share Capital 187.95 187.95 188.02 187.88 187.93Reserves & Surplus 7,004.32 6,281.54 5,828.20 4,739.85 3,964.78Net Worth 7,192.27 6,469.49 6,016.22 4,927.73 4,152.71Secured Loans 506.50 518.05 559.74 450.00 266.03Unsecured Loans 4.23 5.77 7.18 32.03 40.38TOTAL LIABILITIES 7,703.00 6,993.31 6,583.14 5,409.76 4,459.12

Gross Block 9,645.37 8,076.95 6,826.27 5,835.67 5,464.07(-) Acc. Depreciation 3,437.84 2,994.51 2,667.98 2,365.97 2,149.35


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Net Block 6,207.53 5,082.44 4,158.29 3,469.70 3,314.72Capital Work in Progress. 435.32 1,562.80 2,156.21 1,602.86 649.19Investments. 1,624.95 1,702.67 1,475.64 679.08 844.81Inventories 1,099.70 914.98 778.98 793.27 730.86Sundry Debtors 260.41 178.28 203.70 310.17 289.29Cash And Bank 1,652.56 1,080.03 746.38 984.24 743.48Loans And Advances 779.78 752.41 714.55 779.76 544.31

Total Current Assets3,792.45 2,925.70 2,443.61 2,867.44 2,307.94

Current Liabilities 3,303.23 2,627.84 2,558.73 2,245.39 1,991.27Provisions 1,054.02 1,652.46 1,091.88 963.93 666.27Total Current Liabilities 4,357.25 4,280.30 3,650.61 3,209.32 2,657.54NET CURRENT ASSETS -564.80 -1,354.60 -1,207.00 -341.88 -349.60Misc. Expenses 0.00 0.00 0.00 0.00 0.00TOTAL ASSETS (A+B+C+D+E)

7,703.00 6,993.31 6,583.14 5,409.76 4,459.12

ACC LIMITED

BALANCE SHEET AS AT 31 ST DECEMBER 2011 Rs. crore

SCHEDULE AMOUNT

I. SOURCES OF FUNDS:1. Shareholder’s Funds

a) Share Capitalb)Share application money, pending allotmentb) Reserve & Surplus

2. Loan Funds:a) Secured Loansb) Unsecured Loans

4. Deferred Tax Liability

A

B

CD

187.94

0.08

7004.32

506.504.32

7192.34

510.82349.25

5. TOTAL FUNDS 8052.41

II. APPLICATION OF FUNDS:


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1. Fixed Assets:a) Gross Blockb) Less : Depreciationc) Net Blockd) Capital Work-in-progress, etc.

2. Investment3. Current Assets, Loans and Advances

a) Inventoriesb) Sundry Debtorsc) Cash and Bank Balancesd) Other Current Assetse) Loans and Advances

4) Less : Current Liabilities and Provisions:a) Sundry Assetsb) Provisions

5. Net Current Assets

E

F

GHIJK

LM

9645.373437.846207.53435.32

1099.70260.401652.563792.45779.787584.89

3303.231052.254355.48

6642.851624.95

(564.80)

7. TOTAL ASSETS (NET) 7703.00

DATA ANALYSIS AND INTERPRETATION

1 CURRENT RATIO:

The current ratio is the ratio of total current asset to total current liabilities.

It is calculated by dividing current assets by current liability. The standard

current ratio is 2:1.

Current assets

Current ratio =

Current liabilities


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Table 1. Current ratio

Year Current asset Current liability

Ratio

Dec-2007 2735.20 1777.36 1.53

Dec-2008 2330.17 2172.38 1.07

Dec-2009 2294.47 2060.34 1.113

Dec-2010 2753.35 2093.96 1.314

Dec-2011 3617.94 2610.36 1.385

INFERENCE:-

From the above we can observe that the current ratio of company in the

year Dec- 2007 is 1.53 and in the year of Dec-2008 is 1.07 same to the standard.

But Dec-2009 is 1.113 decreased the ratio of the company is below to the two

year ratio changed, and in the year Dec-2011 Increased the current ratio of the

company is 1.38, the company has always changing the cost of cement

production tha’s way current assets and current liability also changing.

Figure No. 1

Current Ratio


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2. ACID TEST RATIO

Acid test ratio may be defined as the relationship between Quick assets

and liquid liabilities. Quick ratio include all current assets expect inventory and

prepaid expenses current liabilities.

Acid Test Ratio = Quick Assets

Current Liabilities

Table 2. Acid Test Ratio

Year Quick Asset Current liability

Ratio

Dec-2007 1941.33 1777.36 1.09

Dec-2008 1515.49 2060.34 0.73

Dec-2009 1515.49 2060.34 0.735


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Dec-2010 1838.37 2093.96 0.877

Dec-2011 2518.24 2610.36 0.964

(Sources: Annul Report of ACC Ltd)

INFERENCE:

This ration is also called as “Acid test ration”. Quick ratio is the real index of the

Liquidity or the short – term solvency of a concern. Quick ratio generally

expressed as a Pure ratio, i.e. as a proportion between quick assets and quick

liabilities

Figure No. 2

Acid Test Ratio

3. WORKING CAPITAL TURNOVER

The ratio, which express the relationship between the net sales to net

working capital called as working capital turnover ratio. It is calculated as

follows.

Net Sales


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Working Capital Turnover = Net working capital

Table 3. Working Capital Turnover

Year Net sales Net working capital

Ratio

Dec-2007 6894.79 649.19 10.62

Dec-2008 7229.97 1602.86 4.51

Dec-2009 8021.59 2156.21 3.72

Dec-2010 7647.77 1562.80 4.89

Dec-2011 9348.26 435.32 21.47


INFERENCE:-

This ratio indicates the efficient utilization of working capital of a enterprise. A

high Ratio indicates efficient utilization of working capital and low ratio

indicates inefficiency utilization of working capital. The working capital

turnover ratio is calculated by the following formula

This ratio indicates the number of times the working capital turnover in

course of a year. This ratio measures the efficiency with which the working

capital is being used by a firm.

From the above table it is clear that the working capital turn over indicates

fluctuating trend. In the year Dec-2007 there was high working capital turnover

ratio. In the year Dec-2008-2009-2010 there was low working capital turnover

ratio. then again 2011 is increase 21.47


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Figure No. 3

Working Capital Turnover Ratio

4. NET CURRENT ASSETS TURNOVER RATIO

The Ratio, which expresses the relationship between the current assets to

net sales, is net current Asset turnover ratio. It is called as follows.

Net SalesWorking Capital Turnover =

Current Assets

Table 4. Net Current Asset Turnover

Year Net sales Current asset Ratio

Dec-2007 6894.79 2307.94 2.98

Dec-2008 7229.97 2867.44 2.52


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Dec-2009 8021.59 2443.61 3.28

Dec-2010 7647.77 2925.70 2.61

Dec-2011 9348.26 3792.45 2.46


INFERENCE:-

From the above table we can observe that the ratio of NATR is in

consistent from 2.98 to 2.46 in the year 07-11, but it decreased next year i.e.,

2008 to 2.52. But in the year 2009 it has been increased to 3.28. Then again

decreased reason is sale has been more than current assets.

Figure No. 4

Net Current Asset Ratio


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5. FIXED ASSETS TURNOVER RATIO:

Fixed assets turnover ratio determines what amount fixed assets have been

used to obtain the amount of sales.

A high fixed turnover ratio indicates efficient utilization of fixed assets in

generating sales.

A firm whose plant machinery are old may show a higher fixed assets turnover

ratio than the firm which has purchase them recently.

Fixed Assets Turnover Ratio = Net Sales

Fixed Assets

Table 5 . Fixed Asset Turnover Ratio

Year Net sales Fixed asset Ratio

Dec-2007 6894.79 3314.72 2.08

Dec-2008 7229.97 3469.70 2.08

Dec-2009 8021.59 4158.29 1.92

Dec-2010 7647.77 5082.44 1.50

Dec-2011 9348.26 6207.53 1.52



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INFERENCE:-

The high turnover ratio. The more efficient to the management and

utilization of the assets. While low turnover ratio indicates as under utilization of

available and presence as ideal capacity.

From the above table we can observe that the FATR of the company has

positive sign it has same to 2.08 in the year 2007 & 2008 from 2.08 in the year

2008. But again the year -09, it decreases to 1.92. And also 2010 decreased is

1.50, but 2011 increased is 1.52

This year by year decreasing because sales turnover is more

Figure No. 5

Fixed Asset Turnover Ratio

6 .TOTAL ASSET TURNOVER RATIO:


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This ratio shows the firm’s ability in generating sales from all financial

resources committed to total assets. Thus it is calculated as follows:

Total asset to turnover ratio = Sales

Total Assets

Table 6. Total Asset Turnover Ratio

Year Net sales Total asset Ratio

Dec-2007 6894.79 3314.72 2.08

Dec-2008 7229.97 3469.70 2.08

Dec-2009 8021.59 4158.29 1.92

Dec-2010 7647.77 5082.44 1.50

Dec-2011 9348.26 6207.53 1.50


INFERENCE:-

From the above table we can observe that the TATR of the Company has a

positive sign. Further, the trend is in the increasing order from the year 2007-to

the year 2008 is 2.08 decreased in the year by year upto 2010 than again

increased 2011 is 1.22

Figure No.6

Total Asset Turnover Ratio


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7. INTEREST COVERAGE RATIO

This ratio indicates the firm’s ability to meet interest obligations. This

ratio is computed as:

Interest Coverage Ratio = EBIT

Fixed Interest

EBIT --- Earnings before Interest and Tax

Earnings before interest and tax are used in the numerator of this ratio;

because the ability to pay interest is not affected by the tax burden as interest on

the depth funds are deductible expenses.


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Table 7. Interest Coverage Ratio

Year EBIT Interest Ratio

Dec-2007 1776.69 73.87 24.05

Dec-2008 1700.69 39.96 43.16

Dec-2009 2357.19 84.30 27.96

Dec-2010 1451.68 56.78 25.56

Dec-2011 1509.93 96.91 15.58


Inference:-

From the above table we can observe that the ICR of the Company has

positive sign. It has increase to 43.16 in the year 2008 in the year 2009-10 it has

been reduced to year by year at end of report 2011 is ratio is 15.58 .

interest is changing upon the EBIT and interest changed ratio also change

Figure No.7

Interest Coverage Ratio


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8.NET PROFIT RATIO

Net profit is the Ratio of net profit toward sales. The net profit

margin is indicative of management’s ability to operate the business with

sufficient success not only to recover from revenues of the period the cost of the

merchandise are services.

Net Profit Ratio = Net profit x100

Net sales

Table. 9 Net Profit Ratios

Year Net profit Net sales Ratio

Dec-2007 4152.71 6894.79 60.22

Dec-2008 4927.73 7229.97 68.15

Dec-2009 6016.22 8021.59 74.99

Dec-2010 6469.49 7647.77 85.57

Dec-2011 7192.27 9348.26 76.93


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INFERENCE:-

From the above table we can observer that the NPR of the Company has

positive sign it is increase 68.15 in the year 2009 to 74.99 in the year 2009

Figure No.8

Net Profit Ratio


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9. RETURN PROPRIETORS FUNDS:

Return on Proprietors funds indicates how well the firm has used the

resources of owners. In fact, this ratio is one of the most important relationships

of financial analysis. The earning of a satisfactory return is the most desirable

objective of a business. The ratio of the net profit to owner’s equity reflects the

extent to which this objective has been accomplished. This ratio is of a great

interest to the present as well as the prospective shareholders and also of great

concern to management which has the responsibility of maximizing the owner’s

welfare. It is calculated as follows:

Return on Proprietors funds = Net profit x 100

Net sales

Table 9. Proprietor Funds Ratio

Year Net profit Net sales Ratio

Dec-2007 4152.71 6894.79 60.22

Dec-2008 4927.73 7229.97 68.15

Dec-2009 6016.22 8021.59 74.99

Dec-2010 6469.49 7647.77 85.57

Dec-2011 7192.27 9348.26 76.93



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Figure No.9

Proprietor Funds Ratio

ACC LIMITEDBALANCE SHEET AS AT 31 ST DECEMBER 2007

Rs. in CorersSCHEDULE AMOUNT


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I. SOURCES OF FUNDS:1. Shareholder’s Fundsa) Share Capitalb)Share application money, pendingallotmentb) Reserve & Surplus


3. Stockiest Deposit (Unsecured)4. Deferred Tax Liability

A

B

CD

187.83

0.10

3964.73

266.0340.38

4152.72

306.41162.69331.45

5. TOTAL FUNDS 4953.27II. APPLICATION OF FUNDS:


2. Investment3. Current Assets, Loans and Advancesa) Inventoriesb) Sundry Debtorsc) Cash and Bank Balancesd) Other Current Assetse) Loans and Advances

Less : Current Liabilities and Provisions:a) Sundry Assetsb) Provisions

5. Net Current Assets6. Miscellaneous Expenditure

E

F

GHIJK

LM

N

5464.072149.353314.72649.19

730.86289.29743.4818.87420.542203.04

1392.2366.272058.50

3963.92844.81

144.54--


ACC LIMITED

BALANCE SHEET AS AT 31 ST DECEMBER 2008


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SCHEDULE AMOUNT




A

B

CD

187.88

--

4739.85

450.0032.03

4927.73

482.03335.79







E

F

GHIJK

LM

5835.672365.973469.401602.86

793.27310.17984.2420.67626.852735.20

1777.36966.932741.29

5072.56679.08

(6.09)

7. TOTAL ASSETS (NET) 5745.55Rs.In Crore

ACC LIMITED

BALANCE SHEET AS AT 31 ST DECEMBER 2009 SCHEDUL AMOUNT


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E




A

B

CD

187.94

0.08

5828.20

550.0016.92

6016.22

566.92349.25







E

F

GHIJK

LM

6826.272667.984158.292156.21

778.98203.70746.3810.99554.422294.47

2060.341091.883152.22

6314.501475.64

(857.75)

7. TOTAL ASSETS (NET) 6932.39Rs. In Corers

ACC LIMITEDBALANCE SHEET AS AT 31 ST DECEMBER 2010

Rs. In crore


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SCHEDULE

AMOUNT




A

B

CD

187.95

0.10

6281.54

518.055.77

6469.59

523.82349.25







E

F

GHIJK

LM

8076.952994.515082.441562.80

914.98178.281080.032925.70752.415851.40

2627.841652.464280.30

6645.241702.67

(1005.25)

7. TOTAL ASSETS (NET) 6993.31ACC LIMITED

BALANCE SHEET AS AT 31 ST DECEMBER 2011 Rs.in crore


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SCHEDULE

AMOUNT




A

B

CD

187.94

0.08

7004.32

506.504.32

7192.34

510.820

5. TOTAL FUNDS 7703.16II. APPLICATION OF FUNDS:





E

F

GHIJK

LM

9645.373437.846207.53435.32

1099.70260.561652.563792.45779.787584.89

3303.231052.254355.48

6642.851624.95

(564.80)


FINDINGS


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1. The current ratio of the company is not upto the standard because the

current ratio of company is changing year by year.

2. . The operating expenses of the company are comparatively high which

may affects in its profit earning capacity.

3. The technology used in the old wadi plant is not latest one compared to

new wadi plant

4. The old wadi plant is not modernization compared to new wadi plant

5. Training as stated one of the weak point because unskilled worker

consumes more time and money

6. The industry matches quite well with international standards in terms

of energy and pollution norms, but the average performance of the Indian

industry is lagging behind.

7. The competitors are doing much promotional activity rather ACC

that’s why it’s facing more problems in selling products in market.

8. The net profit ratio shows the increasing trend from the year Dec-2007

to Dec 2011

9. The sales of the company in the year Dec- 2011 to 2007,

Rs. Cr sales Turnover 10, 49193 (2011), 8609.29 (2010),8806.17

(2009),8300.18 (2008),7865.11 (2007)

SUGGESTIONS


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1. The sales of the company are increasing year by year. Though there is a

cutthroat competition, the sales are in an increasing trend. It is because of

good quality of products at reasonable prices and customer satisfaction. It

is advice to the management to adopt the same policy in future.

2. If we see the current liabilities, it is going increasing year by year. The

management should pay off its liabilities as it may affect the liquidity

position of the company.

3. It is clear from the fixed asset turnover ratio that major parts of funds are

having been invested in stories and spares. It is advice to the management

to invest minimums amount of funds in sto9res and spares.

4. The decrease in net working capital shows that underutilization of

installed capacity so the company should try to utilize the capacity to

the fullest extent.

5. The company has to maintain the same absolute liquid ratio or it

should try to improve further.


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CONCLUSION

In conclusion, it can be stated that the Ratio Analysis is one of the most

important tasks of the management in any business organization. The health of

the business entity is measured in terms of the condition of the financial analysis;

on the other hand most of the financially sound entities have been able to remain

stable and achieve good growth with proper management of its ratio analysis

depends on various factors such as the sales of company, net profit of the

company and market shares from the overall study, it is felt that company is

reaching high standards, keeping pace with changing economical and financial

scenario.

Actually, the aspects like managerial, technical, production; marketing and

financial management has been appraised simultaneously to get the through idea

about the company’s soundness and financial ability.


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B I B L I O G R A P H Y

Text Books:

FINANCIAL MANAGEMENT: By I.M.PANDY

(VIKASH PUBLICATIONS)

FINANCIAL MANAGEMENT: By M.Y. KHAN $ P.K. JAIN

(HIMALAYA PUBLICATION)

JOURNALS:

ANNUL REPORTS OF ACC LIMITED.

BUSINESS TODAY.

BUSINESS LINE

MAGAZINES & WEB SITES

ECONOMIC TIMES


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www.acclimited.com


101

http://www.acclimited.com/


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