COMPANY OVERVIEW

Grasim Industries Ltd. is an Indian building material manufacturing company based in Mumbai,
Maharashtra. It was started in 1948 as a textile manufacturer. Since then Grasim has diversified into
Viscose Staple Fiber (VSF), cement, sponge iron and chemical.

The company is a subsidiary of Aditya Birla Group, which operates over 40 companies in 12 countries on
4 continents. It has four segments: Fibre and Pulp, Cement, Chemicals and Textiles. Fibre and Pulp
segment includes Viscose Staple Fibre and Rayon Grade Pulp. Chemicals include caustic soda and allied
chemicals. In cement, Grasim through their subsidiary Ultra Tech Cement Ltd (Ultra Tech). The cement
segment includes Grey Cement, Ready-Mix concrete and white cement. Textile segment includes Yarn.
Their Textile subsidiary is Bhiwani Textiles Ltd. The company’s other subsidiaries include Sun God
Trading and Investment Ltd, Harish Cement Ltd and Dakshin cement Ltd.

Viscose Staple Fibre

Grasim is India’s pioneer in VSF, a man-made, biodegradable fibre with characteristics akin to
cotton. A versatile and easily blendable fibre. VSF is used in apparel, home textile, dress material,
knitted wear and non-woven applications. Grasim offers the entire range of cellulose fibre under
the umbrella brand ‘Birla Cellulose’. Their fibres can be used in their original form, or can be
blended with all natural and synthetic fibres for enhanced comfort, feel and lustre.

Production of Viscose Staple Fibre (VSF) was started in 1954 at Nagda, in Madhya Pradesh. The
business has grown steadily over six decades to become a leading player, with 9% global share. At
the group level, The Aditya Birla Group commands 17% share globally. The Pulp & Fibre
business derives its competitive edge from its integrated business model, with captive raw
materials – dissolving grade wood pulp, caustic soda, carbon-disulphide, power generation and
steam.

DESCRIPTION

Viscose (or rayon) has often been marketed as a ecologically sustainable alternative to polyester
because unlike polyester which is made from petrochemicals, viscose is made from cellulose. It is
also praised by some fashion brands to some extent. Although not inherently unsustainable, it is
the production process of viscose that presents a very problematic story. Basically, wood pulp is
extracted from wood, then turned into viscose staple fibre (VSF) and filament yarn through a
highly chemical process using carbon disulphide. Viscose production faces a three pronged issue:
the risk of deforestation of ancient forests, occupational hazards of factory workers who are
exposed to highly dangerous toxins that have been linked to neurological damage, and heavy
 contamination that results from poor waste management of viscose factories, not only polluting
nearby waters and air, but causing widespread illnesses to villagers in the vicinity of factories.

• Key Facts :
4 VSF Plants in India.
5,46,000 TPA aggregate India capacity.
4 International JVs

• Capacities at a Glance

Business Units Installed Capacity#

Viscose Staple Fibre Nagda (MP), Harihar 5,46,000 TPA

(VSF) units (Karnataka), Kharach and
Vilayat (Gujarat)
Birla Jingwei Fibres Hubei, China 70,000 TPA
Company*
Rayon Grade Pulp Harihar (Karnataka) 70,000 TPA

AV Cell Inc.* Canada (Nackawic, New 1,30,000 TPA

Brunswick)
AV Nackawic Inc.* Canada (Atholville, New 1,90,000 TPA
Brunswick)
Domsjo Fabriker AB* Sweden (Ornskoldsvik) 2,55,000 TPA

Paper Grade Pulp AV Canada (Terrace Bay, 4,08,250 TPA

Terrace Bay Inc.* Ontario)

*Joint Ventures
#Capacities as on March 31,2015

Vision, Mission and Values :

Vision :

To be a premium Global conglomerate with a clear focus on each business.

Mission :
To deliver superior value to our customers, shareholders, employees and society at large.

Values :
• Integrity: Acting and taking decisions in a manner that is a fair and honest. Following the highest
standard of professionalism and being recognized for doing so. Integrity for us means not only
financial and intellectual integrity, but encompasses all other forms as are generally understood.

• Commitment: On the foundation of Integrity, doing all that is needed to deliver value to all
stakeholders. In the process, being accountable for our own actions and decisions, those of our
team and those in the part of the organisation for which we are responsible.

• Passion: An energetic, intuitive zeal that arise from emotional engagement with the organizational
that makes work joyful and inspires each one to give his or her best. A voluntary, spontaneous and
relentless pursuit of goals and objectives with the highest level of energy and enthusiasm.

• Seamlessness: Thinking and working together across functional groups, hierarchies, businesses
and geographies. Leveraging diverse competencies and perspectives to garner the benefits of
synergy while promoting organisational unity through sharing and collaborative efforts.

• Speed: Responding to internal and external customers with a sense of urgency. Continuously
striving to finish before deadlines and choosing the best rhythm to optimize organizational
efficiencies.

Products :
Board of Directors:

Competitors in VSF for Grasim Industries :

 i). Lenzing AG (Headquaters: Lenzing, Austria)

ii). Zhejiang Fulida Company Ltd. (Headquaters: Linjiang,China)

iii). Tangshan Sanyou Group Ltd. (Headquaters: Tangshan,China)

iv). Sanyou Group Company Ltd. (Headquaters: Tangshan, China)

v). Sateri (Headquaters: Shanghai, China)

vi). Jilin Chemical Fiber Group (Headquaters: Jilin, China)

vii). Kelheim Fibers (Headquaters: Kelheim, Germany)

viii). Glanzstoff Industries (Headquaters: Qingdao, China)

ix). Jiangsu Aoyang Technology Corporation Ltd. (Headquaters: Xinjiang, China)

x). Swan Fiber Company ( Headquaters: Boading, China)

xi). Yibin Grace Group Company (Headquaters: Yibin, China)

xii). Nanjing Chemical Fiber Co., Ltd. (Headquaters: Nanjing, China)

POSITION AND DESCRIPTION OF DUTIES ASSIGNED

POSITION TITLE
 My position in the Accounts Department was an an Intern.

DESCRIPTION OF DEPARTMENT DURING INTERNSHIP

.
DEPARTMENT HEAD
Mr. SANJAY KUMAR DHANUKA

FRONT LINE OFFICERS

ACCOUNTS :- Mr. Om Dutt Thakur

BILL PASSING :- Mr. Sudhir Choudhary

INSURANCE :- Mr. Himanshu Jain

FIXED ASSETS REGISTRAR :- Mr. Bhavdeep Pathak

RECORD ROOM :- Mr. Shankar Chouhan

RESPONSIBILITY ASSIGNED
Physical Verification :- As an intern at Grasim’s VSF the task was to physically verify all the assets
the plant possess and additionally various segments of Grasim, like Grasim also operates it’s schools
and hospital in Nagda. Brief description about the work is presented below:

Physical verification at plant :- The Company had “Jets” which became obsolete for the
company as the technology got updated with eye size 1600 which was back then of 1000
holes in it.

Jet Sizes Available

19000 (Holes in Jet: 19, Holes in Eye: 1000)

21000 (Holes in Jet: 21,Holes in Eye: 1000)

23000 (Holes in Jet: 23, Holes in Eye: 1000)

31000 (Holes in Jet: 31, Holes in Eye: 1000)

40000 (Holes in Jet: 40, Holes in Eye: 1000)

Total Aggregate Weight of Jets: 4500 KG

Amt. to received after Selling Jets: 1.5 - 2 Crores

Why it became obsolete?
With the usage of eye with 1600 holes, it’s diameter/size is also bigger than in comparison
with the eye having 1000 holes.

Physical Verification at Schools:

The next task was to physical verification of the all the assets Aditya Birla Group possess.

Schools in Nagda

Aditya Birla Secondary School

Aditya Birla Senior Secondary School

Aditya Birla Public School

Physical Verification at Hospital:

Hospital in Nagda

Indu Bai Parekh Memorial Hospital (Jan Seva)

 Travelling Distance: Being an intern at Grasim the next task was assigned to me was to evaluate the
total distance travelled by higher officals, employees with the company’s purpose so as to find
Distance covered by them in travelling.
For consideration: Mr. K Suresh the Head of VSF’s Nagda Plant, has to frequently travel to Mumbai
with company’s purpose, so he travels from Nagda to Indore by car which considers the distance of
around 115kms, now from indore to mumbai he travels by flight which considers the Aerial Distance
of around 507 kms. So, the total distance travelled by him from Nagda to Mumbai = 115+507= 622
Kms. These file is to further checked by my guide Mr. Sudhir Choudhary and lastly approved by
Accounnts & Taxation department Head Mr. SK Dhanuka.

Vehicle ROC: As per Grasim industries policies, they provide the support to their employees by
assisting them financially providing 2/3rd of the total amount which vehicle cost and further
installments are made which will be duducted monthly from their salary. Till then the vehicle is
registered in the name of the company and when the whole amount is recovered from the employee,
they have to get it done transferred to their name as the company don’t want to get themselves stuck
under any legal matters. So my duty was to prepare the complete list of defaulters and letting them to
know to get ROC transferred to their names.

Filing of Documents: During internship, I was also assigned the task of filing documents,providing
them with new numbers and deciding the place (Shelf) in record room to be placed.

Payment of Custom Duty: For the material imported Grasim Ltd. pays the custom duty through
Central Govt. website Icegate. It is necessity to pay the custom duty with in some hours or otherwise
fixed percentage of penalty is to be paid which accumulates in lakhs/Crores of Rupees. The website
accepts the payment through the public sector banks only and for this Grasim is associated with State
Bank of India as their banking partners.

Pre-Fund Deciding: A day prior in the evening the company decides the funds required for the next
day operations to smoothly carried out for this purpose they have a website named “Oracle Enterprise
Management System”, they send the fund requirement to the Mumbai headquaters and they further
deposits the amount into HDFC Bank Account, which is Grasim’s major Banking Partner and all
payments and receipts are generally occured into it.

LEARNING OUTCOMES

ACCOMPLISHMENT THROUGH INTERNSHIP

An internship offers the chance to learn by doing in a setting where you are supervised by a
work –place professional and have the opportunity to achieve your own learning, goals
without a responsibility of being a permanent employee.
An internship also offer you the opportunity to work with someone who can become a
mentor for you – not only in the internship but throughout your career.

FACTS OF RESPONSBILITY
Learn new skills and add to your knowledge base while gaining confidence in your abilities
meet new people and practice networking skills while establishing a network of
professional contacts, mentors and references.
1. To confront to the rules/regulations of the business.
2. Fulfil agreed upon time commitments.
3. Discuss progress and engage in discussion of Topics relevant to the operation and
philosophical perspective of the office and functional area in general.
4. Conduct oneself in professional manner.
5. Encourage the student to make decisions, based on defensible standards, rather then
asking you to make decisions.
6. Develop new ideas and put them into practice.
7. Encourage to try different methods accomplishing assigned tasks.

THEORETICAL KNOWLEDGE DURING INTERNSHIP

Depreciation Method: The company is following the “straight line method” of
depreciation for department of Plant & Machinery while all other assets are depreciated on
written down value method.

Budget Passing : Time period: November-December of every year.

IMPACT OF INTERNSHIP ON CAREER
An internship is a practical work experience that occurs between and during any year of
college. It gives us some of the knowledge to help us get for comfortable in work setting.
An internship allows you to put the technical knowledge and professional acumen you
gained during college to work. Performing tasks where you use your skills helps you
develop them more fully, while also learning new ones on the job. An internship helps you
a network of contacts in your field. Internship provides numerous work:-They gain
experience, develop skills, make connections, strengthen the resume, learn about a field,
gain confidence and access the interests and abilities.

SELF EVALUATION

My experience in the Industry was excellent, Sub-heads were cooperative,

understanding, friendly they taught me the best of department all staff members
were helpful, they taught me minute details about their respective area. They
priorities Safety of every person in their premises for the safety of every particular
person, necessary steps are to be followed by the person he has to wear safety
helmet, safety shoes, safety goggles provided by them on the entrance gate, they
have good maintenance, huge & safe area for parking allotted to employees,
workers, Heads of Departments. Healthy environment for work, systematic process
is followed for every work. They have precaution for the safety of their workers
and also taken insurance policy for providing financial help to the worker in case of
any uncertainty. To gain knowledge from hands on training, to work with
deadlines, learned who oversees what, and how to network with different section in
a particular department. In future I will be well prepared to embrace deadlines and
make sure that I’m applying myself in the best manner to complete the projects.

BIBLIOGRAPHY

Web:- www.google.com
http://www.grasim.com/viscose.aspx http://www.grasim.com/milestone.aspx
https://sites.google.com/a/stu.ximb.ac.in/grasim-industries/home
http://www.grasim.com/policies-and-code-of-conducts.aspx
Book:- Annual
Report
Person:-
Sub-Heads, Senior Officers, Staff of Accounts Department.
. 2

1.1
1.2
1.3 5
1.4 6
1.5 7

2.1 8
2.2 8

2.3

11
3.2 11
3.3

13

. 14
 ACKNOWLEDGEMENT

I would like to express my deep respect to my honourable professor for giving his valuable time
and all the necessary guidance, which inspired me to prepare this report.
The Internship opportunity I had with Grasim Industries was a great chance for learning and
professional development. Therefore, I consider myself as a very lucky individual as I was
provided with an opportunity to be a part of it. I am also grateful for having a chance to meet so
many wonderful people and professionals who led me through this internship period.
During this period I have gone through the various sections of Accounts Department and
gathered knowledge about the Accounts & Finance Department with their great cooperation.
In preparing the report I receive active cooperation from the Sub-head of the department, Senior
officers and Staff. I am grateful to the staff of Accounts Department who helped me by
supplying many kinds of necessary information.
 A Summer Internship Project Report

On
“The Financial Activities of Accounts Department”

At

Grasim Industries Ltd. Staple Fibre Division, Nagda

By

Harshdeep Singh Gur

MBA – FT (Finance)
2018-20

Under the guidance of

Mrs. Anita Sharma, Mr. Bhavdeep Pathak, Mr. Govind Dewada, Mr. Sudhir Choudhary

Submitted to
Miss Nikhita Naik (HR)
 DECLARATION

I, Mr. Harshdeep Singh Gur hereby declare that this project is the record of authentic work carried out by
me during the academic year 2019 – 2020. This project is plagiarism free and has not been submitted to any
other University or Institute towards the award of any degree.

Signature of the student

(Harshdeep Singh Gur )

TABLE OF CONTENTS
Sr.No Particulars Page No.

1 Company Profile

9-11

2 Objectives

Scope and Limitation 13-14

4 Company Profile

Company History 16

Vision Mission 17

Services/Product Profile 17-19

Corporate Social Responsibility Policy

20

5 Literature Review

Background sources, Models(if any), any other

Supportive information
22-25

6 Research Methodology

Methodology,Source of Data 27

7 Data Analysis and Interpretation

Quantitative Analysis along with Interpretation 29-37

8 Findings,Suggestions and Conclusion 39-40

10 Annexure – balance sheet 41

CHAPTER III

DATA ANALYSIS & INTERPRETATION

Data Analysis: Major Highlights for Changes in Fixed Assets

YOY Growth in Fixed Assets of the Company:

Years Fixed Assets (In Cr) Trend Percentage
2013-14 -
26,943
2014-15 19%
32,057
2015-16 5%
33,550
2016-17 -0.3%
33,443
2017-18 72%
57,614
2018-19 10%
63,488

Graphical Representation of the Growth in Fixed Assets

Summary:
• The above table shows that the investments in fixed assets are increasing on a year-on-year basis.
• In the year 2016-17; there has been a marginal decrease in the total value of fixed assets as
compared to the previous year.
• For the rest of the 4 years compared the investment has been on an increasing trend ranging
between 5% to 72% which is a good sign for the company.
The abnormal increase in fixed assets in the year 2017-18 is due to merger of Aditya Birla Nuvo Ltd
(ABNL), Jaiprakash Associates Ltd (JAL) and Jaypee Cements Corporation Ltd (JCCL) in Grasim
Industries.

This continuous increase in Fixed Assets is good for the company.

RATIO ANALYSIS:
Ratio analysis is a apprehensive tool of financial analysis. A ratio is defined as the
proportion of two mathematical expressions. Ratios consider the relationship between individual values and
relate them to how a company has performed in the past, and might perform in the future. The absolute
figures reported in financial statements does not provide a meaningful understanding of the performance
and financial position of the company. Ratios help us to summarize large quantities of financial data and to
make qualitative judgment about organisation’s financial performance.

1. FIXED ASSETS TO NET WORTH RATIO :

This ratio shows the relationship between fixed assets and net worth .

Fixed assets to net worth ratio = Fixed assets

Net worth
Net worth = share capital + reserves and surplus + retained earnings
The ratio of “Fixed assets” to “Net worth” indicates the extent to which share holders funds
are sunk into the fixed assets. Generally, share holders should finance for
purchasing fixed assets and equity including the reserves and surpluses and retained earnings. If the
ratio is less than 100% it implies that owner’s funds are more than total fixed assets and the share holder
provide a part of working capital.
When the ratio is more than 100% it implies that owner’s funds are not sufficient to
finance the fixed assets and financier has to depend upon outsiders to finance the fixed assets. There is no
“Rule of Thumb” to interpret but 60%-65% is considered to be satisfactory ratio in case of industrial
undertaking.

2. FIXED ASSET RATIO:

This ratio explains whether the firm has raised adequate long term fund to meet its fixed assets required
and is calculated as under:
= Fixed assets (after depreciation)
Capital employed
This ratio gives an idea as to what part of the capital employed has been used in purchasing the fixed
assets for the concern. If the ratio is less than 1 it is good for the concern.

3. FIXED ASSETS TURNOVER RATIO:

The ratio expresses the no. of times fixed assets are being turned over in a stated period.
It is calculated under.
= _____________sales_____________
Net fixed assets (after depreciation)
This ratio shows how well the fixed assets are being used in business. The ratio is important in case of
manufacturing concern because sales are produced not only by use of current assets but also by amount
invested in fixed assets the higher ratio, the better is the performance. On the other hand, a low ratio
indicates that fixed assets are not being effectively utilized.

4. FIXED ASSETS TO TOTAL LOAN FUNDS:

The ratio measures the relationship between fixed assets and the funded debts and is very useful to the
long term erection. The ratio can be calculated as shown below
Fixed assets as a percent of current liabilities = Fixed Assets

Total Loan Funds

Ratio analysis for Grasim Industries Ltd:

FIXED ASSETS TO NET WORTH RATIO:

Fixed assets (after depreciation) Net worth

Years Net Fixed Assets Net Worth Ratio % Increase/

(In Cr) Decrease
2013-14 21,615 1.25 -
26,943
2014-15 23,140 1.39 -11%
32,057
2015-16 27,429 1.22 12%
33,550
2016-17 31,387 1.07 13%
33,443
2017-18 57,362 1.00 6%
57,614
2018-19 55,773 1.14 -13%
63,488

Graphical Representation of the Fixed Assets Net Worth Ratio

INTERPRETATION:
• The above table shows a continuous decrease in net worth to fixed assets ratio except for the year
2014-15 and 2018-19 where there was a 11% and 13% increase respectively in the ratio.
• This shows that there has been an errosion in the net worth of the company as compared to the
investment in fixed assets which is not a good indicator of solvency for the company.
FIXED ASSET RATIO:
 Fixed assets (after depreciation)

Capital Employed (shareholders fund + Long-Term borrowings)

Years Net Fixed Assets Capital Ratio % Increase/

(In Cr) Employed Decrease
2013-14 21,835 1.23 -
26,943
2014-15 23,437 1.37 -11%
32,057
2015-16 27,815 1.21 12%
33,550
2016-17 31,836 1.05 13%
33,443
2017-18 57,856 1.00 5%
57,614
2018-19 56,455 1.12 -13%
63,488

Graphical Representation of the Fixed Assets Net Worth Ratio

INTERPRETATION
• The above table shows growth in fixed assets to capital employed. In the initial periods the ratio
can be seen as high as 1.37 times of capital employed.
• There has been a significant improvement in the company’s performance as the trend can be seen
to diminish. The ratio in the year 2017-18 is 1.0 which is a indicator of improved performance. In
the current year it has grown by 13% as compared to the previous year. It is a satisfactory for the
company.
FIXED ASSETS TURNOVER RATIO:
 Net Sales
Fixed Assets Turnover = ---------------------------
Average Fixed Assets

Years Net Fixed Assets Sales (In Cr) Ratio

(In Cr)
2013-14 26,943 32,545 1.21
2014-15 32,057 32,847 1.02
2015-16 33,550 34,488 1.03
2016-17 33,443 36,068 1.08
2017-18 57,614 55,894 0.97
2018-19 63,488 72,971 1.15

Graphical Representation of the Fixed Assets Turnover Ratio

INTERPRETATION:
• The above table show that ratio has been on a diminishing trend on an year on year basis. This
ratio indicates how well the fixed assets are being utilised by the company.
• In the year 2018-19, the ratio has increased which is an indicator of good performance for the
company. The ratio has increased by approximately by 18% for the year 2018-19.
 FIXED ASSETS AS A PERCENTAGE TO TOTAL LOAN FUNDS:

Fixed assets as a percent to current liabilities= Fixed Assets

Total Loan Funds

Years Net Fixed Assets Total Loan Ratio

(In Cr) Funds (In Cr)
2013-14 26,943 9,681 2.78
2014-15 32,057 11,930 2.69
2015-16 33,550 12,504 2.68
2016-17 33,443 9,213 3.63
2017-18 57,614 26,198 2.20
2018-19 63,488 34,623 1.83

Graphical Representation of the Fixed Assets to Total Loan Fund

INTERPRETATION:
• The above table show that ratio has been on a diminishing trend on an year on year basis. This
ratio indicates that how well the loan funds are utilised for capital expansaion process (Capex).
• The lower the ratio, it is not good for the oraganisation as this implies that loans funds are
increasing and getting diverted for other purposes instaed of fixed assets. The overall ratio
performace is satisfactory for the organisation.
 SIGNIFICANT ACCOUNTING POLICIES:

Property, Plant and Equipment (PPE):

On transition to Ind AS, the Company has elected to continue with the carrying value of all its property
plant and equipment recognized as at 1st April 2015 measured as per the previous GAAP and use that
carrying value as the deemed cost of the property, plant and equipment.

Property, plant and equipment are stated at acquisition or construction cost less accumulated
depreciation and impairment loss. Cost comprises the purchase price and any attributable cost of
bringing the asset to its location and working condition for its intended use, including relevant
borrowing costs and any expected costs of de-commissioning.

If significant parts of an item of PPE have different useful lives, then they are accounted for as
separate items (major components) of PPE.

The cost of an item of PPE is recognised as an asset if, and only if, it is probable that the economic
benefits associated with the item will flow to the Company in future periods and the cost of the item
can be measured reliably. Expenditure incurred after the PPE have been put into operations, such as
repairs and maintenance expenses, are charged to the Statement of Profit and Loss during the period in
which they are incurred.

Items such as spare parts, standby equipment and servicing equipment are recognised as PPE when
these are held for use in the production or supply of goods or services, or for administrative purpose,
and are expected to be used for more than one year. Otherwise, such items are classified as inventory.

An item of PPE is de-recognised upon disposal or when no future economic benefits are expected to
arise from the continued use of the assets. Any gain or loss arising on the disposal or retirement of an
item of PPE, is determined as the difference between the sales proceeds and the carrying amount of the
asset, and is recognised in the Statement of Profit and Loss.

Capital work-in-progress includes cost of property, plant and equipment under installation/under
development as at the reporting date.

Depreciation methods followed by GRASIM INDUSTRIES LTD is as follows:

CALCULATION OF DEPRECIATION:
Depreciation provided on fixed assets are on the basis of straight line method, except for Viscose
Staple Fibre Division (excluding Power Plants), Nagda, and Corporate Finance Division, Mumbai
 for which it is provided on written down value method, over the useful lives as prescribed in
Schedule II of the Companies Act, 2013, or as per technical assessment.

FINDINGS

After analyzing the financial position of Grasim Industries Limited and evaluating its fixed assets for the

financial periods 2014-2019 or capital budgeting techniques in respect of trend analysis and ratio analysis

- following conclusions are drawn from the project:

• The progress of Grasim Industries Limited shows that there is a considerable increase in Net block

of the fixed assets over the years.

• The investment in the fixed assets have almost doubled in the 5 years study that has been performed.

It has increased by 135% from 26943 to 63488 during the year 2014 to 2019.

• Regarding to the fixed assets to net worth ratio shows a continuous increase in net worth and fixed

assets but the overall ratio analysis states that the fixed assets have not grown at the same rate as

the networth of the company has grown. A ratio higher than 0.75 is not desirable but the ratio has

decreased from 1.39 to 1.1 in the recent years which is a good sign for the company and is a

satisfactory performance and position of the company.

• The revenues of Grasim has more than doubled for the periods considered. The fixed asset to

turnover ration has been on a diminishing trend on an year on year basis. In the year 2018-19, the

ratio has increased which is an indicator of good performance for the company. The ratio has

increased by approximately by 18% for 2018-19.

• Considering fixed asset to capital employed ration, there has been a significant improvement in the

company’s performance as the trend can be seen to diminish. The ratio in the year 2017-18 is 1.0

which is a indicator of improved performance. In the current year it has grown by 13% as compared

to the previous year. It is a satisfactory for the company.

SUGGESTION

• It is suggested to improve the position of the company by effective’s utilization of fixed assets.
• Growth rate in fixed assets can be increase by employing more investment.
• Total investment to sales can be improved.
• Instead of disclosing the combined flows of debtors and loans advances as decrease/(increase) in trade
and other receivables, their separate disclosure will be more meaningful.
• Globalization of economies and the requirement of shares from investors in capital market, diverse and
demanding audience to the company, need a clear and in-depth in information about the company’s
financial position in Annual report.

CONCLUSION

The Fixed asset management of Grasim Industries Ltd is quite comfortable with a judicious mix of debt and
equity. The overall assessment of financial statement signifies efficient utilization of the investments, loans
and advances. The profitability of the company appears to be impressive, as judged by increase in reserves
and surplus.

The management discussions and analysis by Director’s report and opinions expressed by Auditor’s report
through Fixed asset management statements is true and fair view in accordance with the provisions of the
companies Acts, and Accounting standards.

The overall fixed asset management of the company appears to be more than satisfactory.
 ANNEXURE

CONSOLIDATED BALANCE SHEET (YEAR 2018-19 TO 2013-14)

Particulars 18-19 17-18 16-17 15-16 14-15 13-14

Net Fixed Assets 63488 57614 33443 33550 32057 26943
Long Term Loans And 3027 1730 650 923 1648 880
Advances
Loans and Advances of 61972 50649
Financing Activities
Investment (Non-Current and 21048 28268 14200 10601 7255 7611
Current)
Investments of Insurance 16532 13020 0 0 0 0
business
Goodwill 17970 16192 2994 3016 3283 3277
Assets held to cover linked 25166 24709 0 0 0 0
liabilities
Current Assets 19952 15718 11460 11486 9790 9025
229155 207901 62747 59576 54033 47737

Equity Share Capital 132 131 93 93 92 92

Share Capital (Other than 0 0 0 0 59 45
Equity)
Reserves and Surplus 55641 57230 31293 27336 22989 21478
Net Worth 55773 57362 31387 27429 23140 21615
Non Controlling Interest 27387 26337 9702 8729 7682 6936
Deferred Tax Liabilities (Net) 5938 5597 3518 3025 3410 2803
Long Term Liabilities and 682 494 449 386 297 220
Provision
Policy Shareholder's Liability 40150 36373 0 0 0 0
Total Loan Funds 34623 26198 9213 12504 11930 9681
Borrowings related to financial 47346 40151
services business
Current Liabilities 17256 14669 8478 7503 7574 6481
2,29,155 207846 62747 59576 54033 47736
EXECUTIVE SUMMARY
Certificate from Company