INTRODUCTION:

ACC

was formed in 1936 when ten existing cement companies came together under one umbrella in a historic merger. The merger companies belonged to four prominent business groups Tatas, Khataus, Killick Nixon and F E Dinshaw groups.

ACC STANDS OUT AS THE MOST

UNIQUE AND SUCCESSFUL MERGER IN INDIAN BUSINESS HISTORY
Acc

changed its name from its original The Associated Cement Companies Limited, to simply ACC Limited on September 1, 2006.

ACC IS PIONEER IN RECYCLING

HAZARDOUS INDUSTRIAL WASTES LIKE SLAG FROM STEEL PLANTS TO MAKE BLENDED CEMENTS WITH QUALITIES.
ACC

is India's foremost . manufacturer of cement and concrete. ACC's operations are spread throughout the country.
.

It has a workforce of about 9,000 persons and a countrywide distribution network of over 9,000 dealers.

RATIOS BASED ON INVESTMENT IN THE BUSINESS:

LIQUIDITY RATIOS :
CURRENT RATIO:
CURRENT RATIO = CURRENT ASSETS / CURRENT
LIABILITIES

Year

Current Asset in Cr
2108.35

Current Liabilities in Cr
1801.79

Current Ratio
1.1701:1

2008-09

2009-10

1740.05

2060.34

0.8445:1

QUICK RATIO:
QUICK RATIO = (CURRENT ASSETS-INVENTORY) / CURRENT LIABILITIES

Year

Current Asset in Cr

Inventories in Cr

Current Liabilities in Cr

Quick Ratio

2008-09
2009-10

2108.09
1740.05

793.27
778.98

1801.79
2060.34

0.7278:1
0.4664:1

TURNOVER RATIOS:
TOTAL ASSETS TURNOVER RATIO:TOTAL ASSETS TURNOVER RATIO = NET SALES/ TOTAL ASSETS
Year Net sales in Cr 7308.62 8027.20 Total assets Total assets in Cr turnover ratio 5745.55 6932.39 1.27 1.16

2008 2009

(B)FIXED ASSET TURNOVER RATIO:FIXED ASSET TURNOVER RATIO = NET SALES/FIXED ASSETS
Year 2008 2009 Net sales in Cr 7308.62 8027.20 Fixed assets in Cr 5072.56 6314.50 Fixed Asset turnover ratio 1.44 times 1.27 times

(C)STOCK TURNOVER RATIO:STOCK TURNOVER RATIO = COST OF GOODS SOLD/ AVERAGE INVENTORY
Year Cost of goods sold 5549.70 5547.53 Average Inventory 793.27 778.98 Stock Turnover Ratio 6.99 7.12

2008 2009

(D)DEBTORS TURNOVER RATIO:DEBTORS TURNOVER RATIO = NET CREDIT SALES/AVERAGE DEBTORS

OR

DEBTORS TURNOVER RATIO = NET SALES/CLOSING DEBTOR

Year Net Sales in Cr 7282.87 8027.20 Closing Debtor in Cr 310.17 203.70 Debtors Turnover ratio 23.48 39.40

2008 2009

(E)AVERAGE COLLECTION PERIOD:AVERAGE COLLECTION PERIOD (IN DAYS) = 365/DEBTORS TURNOVER RATIO
Year Days Debtors turnover ratio Average collection period (in days) 15.54 days 9.26 days

2008 2009

365 365

23.48 39.40

OR AVERAGE COLLECTION PERIOD (IN MONTHS) = 12/DEBTORS TURNOVER RATIO

Year

Months

Detors turnover ratio 23.48 39.40

Average collection (in months) 0.51 months 0.30 months

2008 2009

12 12

CREDITORS TURNOVER RATIO = CREDIT PURCHASE/AVERAGE CREDITORS

2. WHEN CREDIT PURCHASE AS WELL AS OPENING &

CLOSING BALANCES OF CREDITORS AND BILLS PAYABLE IS NOT GIVEN, THEN THE FORMULAE IS

CREDITORS TURNOVER RATIO = PURCHASE OR COST OF MATERIAL/ CLOSING CREDITORS

RATIO ANALYSIS:- THE COMPANY DOES NOT HAS

ANY CREDITORS SO NO CREDITOR TURNOVER OVER RATIO IS TO BE CALCULATED.

PROFITABILITY RATIOS

GROSS PROFIT RATIO (GP RATIO):

GROSS PROFIT RATIO = (GROSS PROFIT / NET SALES) 100

Year

Gross profit in Cr

Net sales in Cr

Ratio (%)

2008
2009

3961.91
4694.63

7308.62
8284.24

54.20
58.48

NET PROFIT RATIO (NP RATIO): NET PROFIT RATIO = (NET PROFIT / NET SALES) 100
Year 2008 2009 Profit After Tax in Cr. 1212.79 1606.73 Net sales in Cr 7308.62 8027.20 Ratio (%) 16.59 20.02

EXPENSE RATIO:

PARTICULAR EXPENSE = (PARTICULAR EXPENSE / NET SALES) 100

Year 2008 Expenditure in Cr 5909.59 Net sales in Cr 7308.62 Ratio (%) 80.86

2009

5973.92

8027.20

74.42

PROFITABILITY RATIOS BASED ON INVESTMENTS IN THE BUSINESS:

I)

RETURN ON INVESTMENT RATIO:

RETURN ON INVESTMENT (ROI) = INTEREST/DIVIDEND RECEIVED X 100 INVESTMENTS MADE

Financial Year 2008 2009

Others incomes Investment in in Cr Cr 288.71 241.11 679.08 1475.64

ROI (%) 42.51 16.34

II)

RETURN ON CAPITAL EMPLOYED:

RETURN ON CAPITAL EMPLOYED (ROCE) = PROFIT BEFORE TAXES & INTEREST X 100 CAPITAL EMPLOYED
WHERE, CAPITAL EMPLOYED

= EQUITY SHARE CAPITAL + PREFERENCE SHARE CAPITAL + RESERVES & SURPLUS + LONG TERM LOANS ACCUMULATED LOSSES
Financial Year Profit before interests & taxes in Cr 1776.56 2378.69 Capital Empolyed in Cr 5409.76 6583.14 ROCE (%)

2008 2008

32.84 36.13

III)

RETURN ON NET/SHAREHOLDERS

WORTH:

RETURN ON NET WORTH (RONW) = PROFIT AFTER TAXES X 100 (SHAREHOLDERS FUND + GENERAL RESERVES)
Financial Year Profit after taxes in Cr (Shareholders fund + general Reserves) in Cr RONW (%)

2008 2009

1212.79 1606.73

4927.73 6016.22

24.61 26.70

IV)

RETURN ON EQUITY:

RETURN ON EQUITY (ROE) = PAT PREFERENCE SHARE DIVIDEND X100 EQUITY SHARE CAPITAL
Financial Year PATEquity Share preference Capital in Cr. share dividend in Cr 1212.79 1606.73 187.88 187.94 ROE (%)

2008 2009

645.51 854.91

EARNINGS PER SHARE ( EPS):

EPS = NET PROFIT AFTER TAX AND PREFERENCE DIVIDEND / TOTAL NUMBER OF OUTSTANDING
EQUITY SHARES
Year PAT & Preference dividend in cr 1212.79 1606.73 Total no. of equity Share 225000000 225000000 EPS (Rs)

2008 2009

53.90 71.41

DIVIDEND PER SHARE (DPS): DPS = TOTAL DIVIDEND/ TOTAL NUMBER

OF OUTSTANDING EQUITY SHARES

Year

Total dividend in Cr

Total no. of equity shares

DPS (Rs)

2008
2009

167.36
173.43

325000000
325000000

5.15
5.34

CAPITAL STRUCTURE\LEVERAGE RATIO: DEBIT EQUITY RATIO:DEBT CAN BE:1) SHORT TERM 2) LONG TERM

DER =
CAPITAL

LONG TERM DEBT/ EQUITY SHARE = TOTAL DEBT/EQUITY

Equity share capital in Cr. DER

DER
Year

Long term Debt in Cr.

2008
2009

482.03
566.92

187.88
187.94

2.56
3.01