A Project Report

ON

Cost and Finance ananlysis of Ambuja

Cements,Bhatapara
(2018)

Company Guide
Mr.Mrunal Susari
Mr. Vishwas Soni
AMBUJA CEMENT

Submitted By
Nivedita Gupta
First year Bachelor in Accounting and Finance
Mithibai college,Mumbai

Declaration

I Nivedita Gupta hereby declare that the Project Work with the title cost and finance analysis
of Ambuja cement, Bhatapara (2014-2018) submitted by me for the partial fulfillment of the
degree of BAF is my original work and has not been submitted earlier to any other University
/Institution for the fulfillment of the requirement for any course of study.

1
I also declare that no content of this manuscript in whole or in part has been incorporated in
this report from any earlier work done by others or by me. However, extracts of any literature
which has been used for this report has been duly acknowledged providing details of such
literature in the references.

Signature of supervisor: Signature of the student

Name: Nivedita Gupta

ACKNOWLEDGEMENT

At the very outset, I fail to find adequate words, with limitedvocabulary at my command, to
express my emotions to ‗Dear God‘, whose eternal blessings divine presence, and masterly
guidance helps me to fulfill all my goals.

2
I am thankful to the authority of AMBUJA CEMENT LIMITED BHATAPARAfor
providing me an opportunity to with them. I am especially thankful to Mr.MrunalSusari GM
(Finance), Mr.VishwasSoni of cost department for providing me opportunity, knowledge and
all the vital information on which this project report stands. The support provided to me
during my project was overwhelming and the work environment was conducive to work.

Sometimes it is not easy to express your emotions in words especially when you have to say
thanks to your parents for their constant undemanding love, dedication, sacrifice, inspiring
guidance, affectionate encouragement and never ending enthusiasm; with which this project
would not have been completed successfully.

I would like to thank many others who have been associated with workdirectly or indirectly.

INDEX
S.NO TOPIC PAGE
NO.
1 CEMENT INDUSRTY
 INTRODUCTION 7
 MARKET SIZE 7

2 ABOUT AMBUJA CEMENTS LIMITED

 COMPANY PROFILE 8
 ACHIEVEMENTS 9
 RECOGNITION 10
 VISION OF ACL 11
 MISSION OF ACL 11
3 LITRATURE REVIEW 12-15

3
4 RESEARCH METHODOLOGY 16-17
5 COSTING ANALYSIS
 INTRODUCTION 18
 CONCEPTS 18
 METHODS 19
 CEMENT MANUFACTURING PROCESS 21
 REPORT 15A 22
 ANALYSIS OF COST SHEET 24
 COST SHEET OF CLINKER
25
 COST SHEET OF CEMENT
28
6 FINANCIAL ANALYSIS
 FINANCIAL HIGHLIGHTS OF 5 YEARS 31
 COMPARATIVE BALANCE SHEET ANALYSIS OF ACL 32
7 SWOT ANALYSIS OF ACL 36
8 COMPARITIVE ANALYSIS 37
9 INTERPRETATION OF DATA 38-40
10 GST- GOODS AND SERVICE TAX
 COMPONENTS 41
 BENEFITS 41
 REGISTRATION 42
 CONSIDERATION 42
 NEW REGISTRATION
43
 ACCOUNTS AND RECORDS
43
 DUE DATE OF RETURN
44
 IMPLICATIONS
44
11 CONCLUSION 45
12 BIBLIOGRAPHY 46

4
INTRODUCTION-
Summer training included a period of 15 days which had an indispensable effect in the
enlightening of knowledge and sagacity to build faith and confidence in oneself to get the
knowledge sharpened up and be optimistic for a bright career ahead.

The purpose of pursuing this training was to get a thorough knowledge about the finance
system in firm and know more about the working of one of the most robustly growing
companies i.e. Ambuja Cements Ltd.

CEMENT INDUSTRY-
INTRODUCTION-
The Indian cement industry is the second largest in the world after China, employing in
excess of a million people throughout the country. The cement industry contributes a big deal
to the Indian economy, more so because the construction industry in India relies heavily on
the cement industry for natural reasons. Indian as well as foreign companies have invested
billions in the Indian cement industry after regulations were lifted off in 1982. The cement
industry in India is currently undergoing a turnaround phase striving hard to come at par with
its global competitors in terms of health, safety, environment, production and energy
efficiency.

India has a lot of potential for development in the infrastructure and construction sector and
the cement sector is expected to largely benefit from it. Some of the recent major government

5
initiatives such as development of 100 smart cities are expected to provide a major boost to
the sector.

Expecting such developments in the country and aided by suitable government foreign
policies, several foreign players such as Lafarge-Holcim, Heidelberg Cement, and Vicar have
invested in the country in the recent past. A significant factor which aids the growth of this
sector is the ready availability of the raw materials for making cement, such as limestone and
coal.

MARKET SIZE-
During the next four to five years, the Indian cement market is projected to witness a
Compound Annual Growth Rate (CAGR) of around 8.96 percent. Approximately 67 percent
of the cement consumption can be attributed to the housing sector in India, 13 percent to the
infrastructure sector, 11 percent to the commercial construction and the rest to the industrial
construction segment. The next two years might see the cement industry add on 5.6
croretonnes to its capacity due to a steep rise in the demand. The overall cement capacity in
India is expected to reach 39.5 croretons by the next year and 42.1 croretonnes by the end of
from the present of 36.6 croretonnes

A staggering 97 percent of the total cement production in India comes from the 188 large
plants set up across the country, while 365 small cement plants are responsible for the
remaining three percent. Just the three states of Tamil Nadu, Andhra Pradesh and Rajasthan
are home to 77 of the 188 large plants. Some of the world's top cement companies are based
in India. Seventy percent of all the cement produced in India belongs to the top 20 companies
operating in the industry.

ABOUT AMBUJA

Ambuja Cements Ltd, a part of the global conglomerate LafargeHolcim, is one of the leading
cement companies in India and is known for its hassle-free, home-building solutions. Its
unique products tailor-made for Indian climatic conditions, sustainable operations and
initiatives that advance the company's philosophy of contributing to the larger good of the
society have made it the most trusted brand in Indian cement industry.

COMPANY PROFILE
Name of The Ambuja cements limited
Company
Year of establishment 1983
Revenue 76,378.1 million

6
Corporate address P O Ambujanagar, Taluka, Kodinar, Junagadh Dist-362715,
Gujarat.
Email ID www.ambujacement.com
Management Details  Chairman and principal founder- Mr. N.S. Sekhsaria.

 MD & CEO- Mr. Ajay Kapur.

 Directors- Mr. Martin Kriegner ,OmkarGoswami,

B.L Taparia, ShaileshHaribhakti ,HaigreveKhatain ,
ChritofHassig.

 CFO- Mr.Suresh Joshi

 CS-Mr.Rajiv Gandhi

Business Operation Cement & Construction Materials.

Financial Statement Net Worth- 19,074 (Rs. In crores)

Net Profit- 970 (Rs. in crores)

Company Secretary Mr. Rajiv Gandhi

Auditors M/s. SRBC& Co. LLP (Statutory Auditors)

Achievements

Name of award Award Details

Yea
r
FICCI CSR Award ACL won under "category 5 Any Other
201 projects" for Water Resource
6 Management
201 Bombay Chamber Civic Award ACL won this award under the social

7
6 2015-16 development category
201 The Derozio Award for Education AMK won this award in "Special
6 and Human Enrichment 2016 Education"
201 Championship trophy at 19th AMK won this championship 11th time
6 Punjab State Special Olympics in a row
201 Rashtrapita Mahatma Gandhi Won by ACF Chandrapur
6 VyasanmuktiSevaPuraskar
201 Best Continued Support from NGO ACF Ropar conferred with 'Best
6 Project Director Continued Support from NGO Project
Director' by Chandigarh State AIDS
Control Society
201 Pt. Madan Mohan Maliyah Silver Best CSR Practices in Education
5 Award
201 World Summer Special Olympics, Two athletes from AmbujaManovikas
5 Los Angeles Kendra won medals
201 Championship trophy at 18th Participants from AmbujaManovikas
5 Punjab State Special Olympics Kendra grabbed first position in six
different categories
201 Best Partnership Award based Awarded by NABARD on excellent
4 performance in implementation of
Watershed Development Projects in
Himachal Pradesh during FY 2013-14
201 Improving productivity of crops” We are pleased to inform you that
4 NABARD NABARD selected Ambuja Cement
Foundation (ACF) for the Partnership
Excellence Award (based on the
performance / achievement during FY
2013-14) in the following category:
“Improving productivity of crops”
(ACF - NABARD Project at Bathinda)
201 Social Work- Bathinda Deputy Chief Minister of Punjab,
4 ShriSukhveer Singh Badal appreciated
Ambuja Cement Foundation for its
remarkable social welfare work in
Bathinda.

The work done by ACF in Agriculture

& Drugs-De-Addiction sector was
appreciated by Deputy Commissioner
during the receiving of Appreciation
Letters.
201 Award Name :- Water Digest Ambuja Cement Foundation-Chirawa
3 Water  has won "Best Water NGO - Water
Award 2013-14 -Supported by Harvesting" category 

8
 UNESCO
201 Best NGO Award for working in Awarded by Northern India Cotton
3 the cotton sector Association Ltd.
 

 
Recognition
 National Award for commitment to quality by the Prime Minister of India.

 National Award for outstanding pollution control by the Prime Minister of India.

 ISO 9002 Quality Certification.

 ISO 14000 Certification for environmental systems.

 Best Award for highest exports by CAPEXIL.

 Economic Times - Harvard Business School Association Award for corporate

excellence.

Vision of ACL

To be the most sustainable and competitive company in the cement industry.

Mission of ACL

Create Value for All

 Delighted Customer
 Inspired Employees
 Enlightened Partners
 Energized Society
9
 Loyal Shareholder
 Healthy Environment

Literature Review

Dr. Sanjeet Sharma

The present study has been undertaken to examine the empirical relationship between equity
share prices and explanatory variables such as: book value per share, dividend per share,
earning per share, price earning ratio, dividend yield, dividend payout, size in terms of sale
and net worth for the period 1993-94 to 2008-09. The results revealed that earning per share,
dividend per share and book value per share has significant impact on the market price of
share. Further, results of study indicated that dividend per share and earning per share being
the strongest determinants of market price, so the results of the present study supports liberal
dividend policy and suggests companies to pay regular dividends. This policy will affect
market price of share in positive direction. Since, book value per share depicts the owner’s
funds, a higher book value per share is perhaps perceived by an investor to be an indicator of
the sound financial position of a company for investing. All this shows that the study of
financial factors prove to be beneficial for the investor in the India, as these factors posses
strong explanatory power and hence, can be used to make accurate future forecasts of stock
prices. So, investors are suggested to take care of accounting variables of company before
investing.

10
Sanjay J. Bhayani
In corporate finance, financing decision has gained greater importance because the optimal
capital structure can be created through proper mix of finance. Corporate managers generally
prefer borrowings over other means of financing. Management of a company has to be very
careful while deciding the extent of financial leverage in its capital structure because the right
use of financial leverage can increase the shareholders' wealth whereas its improper use
would adversely affect the interest of shareholders. This study examines the empirical effects
of corporate capital structure (financial leverage) on cost of capital and the market value of
selected firms of Indian Cement Industry for the period from 2000-01 to 2007-08. The
research evidence of the study indicates that no impact of financial leverage on cost of capital
was found in the cement industry in India, i.e. no significant linear relationship between the
financial leverage and cost of capital exists, and there is no correlation between the financial
leverage and total valuation within the cement industry. Or in other words, financial leverage
does not affect the total valuation of a firm in the cement industry in India.

ShvetaKapoorH.S. Sandhu

This article attempts to examine the impact of corporate social responsibility (CSR)on
corporate financial performance (CFP)in terms of profitability and growth after controlling
for the effect of other variables on financial performance. Secondary data on CSR based on
93 companies operating in India have been analyzed by applying content analysis of annual
reports for the year 2005–06 and individual websites of the companies. For CFP and control
variables, secondary data have been collected for seven-year period from 1999–2000 to
2005–06 from Prowess, electronic database developed by Centre for Monitoring Indian
Economy (CMIE), Mumbai. Statistical tests like factor analysis and multiple regression
analysis have been applied. The results indicate significant positive impact of CSR on
corporate profitability and insignificant positive impact on corporate growth. The present
study is helpful for managers in considering the positive impact of CSR on corporate
profitability while taking decisions about investing in CSR areas.

Bhayani, Sanjay J.

 Efficiency of any organization can be judge through its profitability. Profitability of the firm
is highly influenced by internal and external variables, i.e., size of organizations, liquidity
management, growth of organizations, component of costs and inflation rate. In the present
paper an attempt has been made to identify which variable are judging the profitability of
Indian Cement Industry. The study covers the all listed cement firms working in India for the
period of 2001 to 2008. To determinant profitability backward regression analysis were used
on the variables of the study. The result of the study shows that liquidity, age of the firm,
operating profit ratio, interest rate and inflation rate has played a vital role in the
determination of the profitability of Indian Cement Industry.

Dr. Ashok Panigrahi

11
Cash conversion cycle (CCC) has been considered a useful measure of firm’s effective
working capital management and especially the cash management. This study was conducted
with the aim to look into the association of the cash conversion cycle with the size and
profitability of the firm. The present study is concerned about evaluating how cash
conversion cycle affects the profitability of cement manufacturing companies in India. The
specific research objective of the study is to investigate the existing literature on the role of
cash conversion cycle in enhancing return on assets and equity of the companies and to
measure the impact of cash conversion cycle on profitability of the manufacturing companies.
The results of the study will be helpful for academics and industry experts for policy making
and control purposes. The study takes return on equity and return on assets as measures of
profitability to represent dependent variables. Firm size and debt ratio are taken as control
variables. Cash conversion cycle is considered as independent or explanatory variable. Study
takes into consideration top five Indian cement companies for a period of 10 years starting
from 2001 to 2010. Results showed that the selected companies are having low average
return on asset and return on equity with significantly negative cash conversion cycle.
Regression results after adjusting for heteroskedasticity of data to minimize the effects of
outliers showed that cash conversion cycle is having significantly positive association with
both return on assets and equity indicating that it is not necessary that always there must be
lesser the cash conversion cycle greater would be the profitability measured through return on
assets and equity. If the firm is able to sell the inventory and collect the receivables before it
pays to the payables, then the situation would be little bit different. As happened in our case,
firms are not under pressure to reduce the receivable collection period and inventory selling
period along with the extension of payment period to increase the profitability.

Dr. Ashok Panigrahi

Liquidity management is a concept that is gaining serious attention all over the world because
of the current financial turmoil and the state of the world economy. The concern of business
owners and managers all over the world is to devise a strategy which will help in maintaining
liquidity as well as to increase profitability and shareholder’s wealth. Liquidity is perceived
as the debt paying ability of a going concern. It is the ability of a company to meet the short
term obligations. Hence, it is of utmost important to keep a constant eye on liquidity position
of the company as without it the company cannot survive. In this paper a comparative study
on the liquidity position of five leading Indian cement companies has been done to know the
liquidity position of the companies. The study covers a period of 10 years viz, 2000-2001 to
2009-2010. For the purpose of investigation purely secondary data is used. The techniques of
mean, standard deviation, coefficient of variation, ratio analysis, and Motaal’s ultimate rank
test has been applied to analyze the data. It has been found that the liquidity position of small
companies are better as compared to big ones and most interestingly the growth rate of
current ratio, quick ratio and working capital to current assets of all the companies are
negative which indicates an unsound liquidity position. Moreover, low or negative working
capital in some cases indicates the aggressive working capital management policy of the
firms which implies minimal investment in current assets by the companies so as to derive a

12
higher rate of return. But it has to be remembered that risk of default and bankruptcy
increases when a firm adopts more aggressive working capital policies. One should
remember that a negative working capital is a sign of managerial efficiency in a business with
low inventory and accounts receivable (which means they operate on an almost strictly cash
basis). In any other situation, it is a sign that a company may be facing bankruptcy or serious
financial trouble. In our case, Motaal’s Ultimate Rank Test shows that the liquidity position
of Shree Cements is sounder as compared to other companies.

Shagufta Khan, VineetChouhan, Bibhas Chandra, ShubhamGoswami

Cement is the single most important and profitable product in the building material sector.
With the economic boom, in India, Indian cement industry is a market of opportunities
waiting to be tapped. However, at the same time cement industry is also experiencing a surge
in demand. Production of Cement will always release carbon dioxide and change in the
climate of the earth that is why despite its profitability, the cement industry faces many
challenges regarding environmental concerns and sustainability issues. In order to minimize
the impact of all of the above mentioned issues, it is clear that the cement and
construction industry will have to adapt to remain sustainable and in this process a number of
innovative and new practices have to be adopted. The objective of this paper is to analyze the
gap between the existing reporting practices and level of disclosure desired by stakeholders
of cement companies and to identify the areas under which Indian Cement companies can
report accountinginformation in sustainable way. Furthermore it is also required to align
the reporting is as per stakeholder’s requirement. The accounting areas of reporting will be
explored so that the requirements of reporting in terms of financial character can be filled in.
This may lead to change in the practices under which the
current financialstatement provides financial information of sustainable activity as non-
financial activity and its cost has been shown in the miscellaneous expenditure.

13
Research Methodology

Introduction

The research methodology is the systematic way solves the research problems. The main
objective of the research is to know the financial and costing system of Ambuja Cement and
to study the current and previous years records by Ambuja Cement. For this, right at the
beginning the research planwas prepared. This includes all details of how to go about
research work of Ambuja Cement.

Objectives:
 To identify the five years financial performance of the Ambuja Cement.
 To know the different methods of costing
 To determine the changes and trends over time in balance sheet

Research Design:
 Type of research
 Research method
 Data Collection Procedure

Type of Research:

14
  Analytical: In this research, the researcher has to use facts or information
already available and analys these to make a critical evaluation of the material.

Research method:
Research methods are understood as all those methods and techniques that are usedfor
conduction of research. Research methods or techniques refer to methods theresearchers use
in performing research operation. In other words, all those methodswhich are used by the
researchers during the course of studying his researchproblems are termed as research
methods. Since the object of research, particularlythe applied research, is to arrive at a
solution for a given problem, the availabledata and the unknown aspects of the problem have
to be related to each other tomake a solution possible. Keeping this in view I took the
following method:
 Analysis of documents

Data Collection Procedure:

The data for any project for analysis and interpretation can be collected through two methods
which are:-

1. Primary Data: Primary data is that data which is collected by researcher himself by
going to the place of happening.

2. Secondary Data: Secondary data is a form of data that is collected through various
indirect ways like newspaper, books journals, periodicals, reports published by the
companies, internet etc.

In my project Ihad used both types of methods. The information collected about the
companies basically through the secondary data that is collected through internet and
magazines.

The data about the financial and costing system is collected from the employees of the
finance and cost department, which is a method of primary data. On the basis of this
information I had done my analysis and interpretations. It helps in drawing conclusions and
providing necessary suggestions.

15
COSTING ANALYSIS

INTRODUCTION

Cost accounting is the application of accounting and costing principles, methods, and
techniques in the ascertainment of costs and the analysis of saving or excess cost incurred as
compared with previous experience or with standards.

It is a process of collecting, recording, classifying, analyzing, summarizing, allocating and

evaluating various alternative courses of action & control of costs. Its goal is to advise the
management on the most appropriate course of action based on the cost efficiency and
capability. Cost accounting provides the detailed cost information that management needs to
control current operations and plan for the future.

Cost accounting information is commonly used in financial accounting information, but its

primary function is for use by managers to facilitate making decisions.

Following are the main concepts of cost accounting:

1. COST
An amount that has to be paid or given up in order to get something.In business, cost
is usually a monetary valuation of effort, material, resources, time and utilities

16
 consumed, risks incurred, and opportunity forgone in production and delivery of a
good or service. All expenses are costs, but not all costs (such as those incurred in
acquisition of an income-generating asset) are expenses.

2. EXPENSES
Money spent or cost incurred in an organization's efforts to generate revenue,
representing the cost of doing business. Expenses may be in the form of actual cash
payments (such as wages and salaries), a computed expired portion (depreciation) of
an asset, or an amount taken out of earnings (such as bad debts). Expenses are
summarized and charged in the income statement as deductions from the income
before assessing income tax.

3. LOSS
Loss is a cost that produces no benefit. It may be in the form of decrease in value,
excess of expenditure over income, excess of cost over the net proceeds from a
transaction. Expenses are incurred to obtain something and losses are incurred without
any compensation. They add to the cost of product or services without any value
addition to it.

4. COST CENTER
A cost center refers to a defined area, machine, or person to whom direct and indirect
costs are allocated. It is a distinctly identifiable department, division, or unit of an
organization whose managers are responsible for all its associated costs and for
ensuring adherence to its budgets. It is also called cost pool or expense center.

5. PROFIT CENTER
It is a distinctly identifiable department or unit that contributes to the overall financial
results of a firm. Where adequate cost accounting systems are in place, profit centers
are given responsibility to target certain percentages of the total revenue and are given
adequate authority to control their costs to achieve those targets. See also cost center
and revenue center.

6. COST DRIVERS
A factor that can cause a change in the cost of an activity.
An activity can have more than one cost driver attached to it. For example, a
production activity may have the following associated cost-drivers: a machine,
machine operator(s), floor space occupied, power consumed, and the quantity of
waste and/or rejected output.

METHODS OF COSTING
Different industries follow different methods to establish the cost of their product. This varies
by the nature and specifics of each business. There are different principles and procedures for
performing the costing. However, the basic principles and procedures of costing remain the
same. Some of the methods are mentioned below:

17
 Unit costing: This method is also known as "single output costing." This method of
costing is used for products that can be expressed in identical quantitative units. Unit
costing is suitable for products that are manufactured by continuous manufacturing
activity: for example, brick making, mining, cement manufacturing, dairy operations,
or flour mills. Costs are ascertained for convenient units of output.

 Job costing: Under this method, costs are ascertained for each work order separately
as each job has its own specifications and scope. Job costing is used, for example, in
painting, car repair, decoration, and building repair.

 Contract costing: Contract costing is performed for big jobs involving heavy

expenditure, long periods of time, and often different work sites. Each contract is
treated as a separate unit for costing. This is also known as terminal costing. Projects
requiring contract costing include construction of bridges, roads, and buildings.

 Batch costing: This method of costing is used where units produced in a batch are
uniform in nature and design. For the purpose of costing, each batch is treated as an
individual job or separate unit. Industries like bakeries and pharmaceuticals usually
use the batch costing method.

 Operating costing or service costing: Operating or service costing is used to

ascertain the cost of particular service-oriented units, such as nursing homes, busses,
or railways. Each particular service is treated as a separate unit in operating costing.
In the case of a nursing home, a unit is treated as the cost of a bed per day, while, for
busses, operating cost for a kilometer is treated as a unit.

 Process costing: This kind of costing is used for products that go through different
processes. For example, the manufacturing of clothes involves several processes. The
first process is spinning. The output of that spinning process, yarn, is a finished
product which can either be sold on the market to weavers, or used as a raw material
for a weaving process in the same manufacturing unit. To find out the cost of the yarn,
one needs to determine the cost of the spinning process. In the second step, the output
of the weaving process, cloth, can also can be sold as a finished product in the market.
In this case, the cost of cloth needs to be evaluated. The third process is converting the
cloth to a finished product, for example a shirt or pair of trousers. Each process that
can result in either a finished good or a raw material for the next process must be
evaluated separately. In such multi-process industries, process costing is used to
ascertain the cost at each stage of production.

 Multiple costing or composite costing: When the output is comprised of many

assembled parts or components, as with television, motor cars, or electronics gadgets,
costs have to be ascertained for each component, as well as with the finished product.
Such costing may involve different methods of costing for different components.
Therefore, this type of costing is known as composite costing or multiple costing.

18
  Uniform costing: This is not a separate method of costing, but rather a system in
which a number of firms in the same industry use the same method of costing, using
agreed-on principles and standard accounting practices. This helps in setting the price
of the product and in inter-firm comparisons.

 ACL follows process costing to ascertain the cost at each stage of production or
manufacturing of cement.

CEMENT MANUFACTURING PROCESS AT ACL

The cement manufacturing process comprises of 5 main process which comprises of
1. Mining ,
2. Crushing,
3. Raw Mill Preparation,
4. Clinker Production And
5. Cement Production.

ACLBhatapara unit has two lines

Bhatapara line 1 which involves process 1 to 5

Bhataparaline 2 which involved process 1 to 4.

19
1. MINING
 Extraction of limestone and clay from query using drilling and blasting techniques
and modern extraction techniques.
 Uncrushed limestone is obtained from this process.
 Dumper loads the big rocks or boulders and unloads them to crushers.

2. CRUSHING
 The quarried material is then reduced in size by compression and/or impact in various
mechanical crushers
 The uncrushed limestone is converted into crushed lime stone.

3. RAW MILL PREPARATION

Preparation of a homogeneous mix of
Crushed limestone - 97-99%

Iron ore
Phosphor gypsum
Coarse ash 1-2%
20
 Red mud

4. CLINKER PRODUCTION
 Heatingof raw mill at a very high temperature in the rotating kiln,
 Fuels required for the same are - coal, alternative fuel, diesel.
 Due to heating 1.5 unit of material shrinks to 1unit.
 The kiln is designed to maximize the efficiency of heat transfer from fuel burning to
the raw material
 At this high temperature, minerals fuse together to form predominantly calcium
silicate crystals - cement clinker.
 The molten cement clinker is then cooled as rapidly as possible
 Clinker may be either stored on site in preparation for grinding to form cement or
transported to other sites

5. CEMENT PRODUCTION
 The grinding together of cement clinker, with around 5% of natural or synthetic
gypsum in cement or ball mill containing steel balls to grind the mixture into cement
 Other cementations materials such as slag, phosphor gypsum, imported gypsum, fly
ash are added to the cement.
 Thecement or ball mill contains steel balls to grind the mixture into cement.
 The types of cement produced at ACL are PPC, PPC+, OPC43, OPC53 and
Composite cement.

REPORT 15 A – COST OF GOOD PRODUCED AT ACL

Report 15 A of ACL is a report generated by using SAP that helps to ascertain the total cost
of goods produced at mines,crushers,rawmill,kiln and cement mill.

The entire cost information regarding line 1 and line 2 can be obtained in an organized
manner and format from report 15 A.
Line 1-file NE06
Line 2-file NE08
Combined- file NE06+NE08

SAP

DETAIL
STUDY OF
15A

PROCEDURES OF ENTERING DATA FROM SAP TO EXCEL SHEET

(15A)-

21
1. Login to SAP with user id
2. Enter T-Code GRR 3
3. 15A
4. Go to ACL 15A.
5. Execute
6. Get variant
7. Selection of company’s code; line 1- NE06
Line 2- NE 08
Combine – NE06+NE08.
8. Then comes the controlling -
Area code- IN01
Fiscal year-
From –current period
To- current period
Plan version-0
Company code-IN20
9. Execute
10. Enable macros in excel sheet
11. Copy the data from SAP sheet to excel sheet.

PRODUCTION PROCESS AND 15A

MAIN PROCESS COST CENTER

Mines 10 E 06
Crusher 20 E 06
Raw mill 30 E 06
Kiln 40 E 06
Cement mill 50 E 06

There are various departments supporting and involved in production in these

five processes. Some of them are-
1. Accounts dept.
2. Purchase dept.
3. Production dept.

22
 4. Human Resource dept.
5. Electrical dept.
6. Mechanical dept.
7. Quality control dept.

Cost center code is used by the departments to record the specific process related data
through filing up the transaction in the cost center of the given process.

ANALYSIS OF THE COST SHEET

VARIABLE COSTS INCLUDE-

 Raw material (iron ore, coarse ash, phosphor gypsum, pet coke, red
mud, fly ash)
 Fuel (diesel, coal, pet coke)
 Electricity/ power
 Wear parts (refractory, grinding media)
 Diesel (mines)
 Outsourced activities
 Production and distribution material (explosive)
 Mining royalties

FIXED COSTS INCLUDE-


 Electricity energy; fixed
 3rd party services
 3rd party maintenance
 Personnel expenses (employees expenses)
 By products (damaged cement)
 Fixed labour expenses
 Maintenance material and other cost centre expenses

PROVISIONS INCLUDE-
 Bad debts written off.
 Provision for wear parts
 Other provisions.

23
DEPRECIATION INCLUDES-
 Depreciation/amortization of PPEs
 Depreciation/amortization of Long term assets
 Depreciation/amortization of operating assets

STATEMENT OF COST OF ACL UNIT BHATAPARA FOR THE YEAR

ENDED31ST DECEMBER, 2018

1. COST SHEET OF CLINKER

Quantitative details of clinker

Year Production Finished Finished Captive Other Quantity
Goods Stock Consumption Adjustments Sold
Purchased Adjustment
Current 772,812. (1,622,446.0 1,1 367,25
Year 00 - 59,811.78 0) 57,078.32 6.10
Previous 927,243. (1,487,672.0 7 250,75
Year 00 - 41,933.96 0) 69,254.24 9.20

Amount in ₹ crores

CURRENT YEAR 2018 PREVIOUS YEAR 2017

Particulars Amount Cost/Unit Amount Cost/unit

521,078,02 664,530,885.7 716.

Materials Consumed * 8.24 674.26 8 67

Process   -
Materials/Chemicals   -
1,099.
687,285,87 1,019,528,959.15 53
Utilities * 0.63 889.33
14,631,272.2 15.
11,992,63 5 78
Direct Employees Cost 6.28 15.52
1,504,049.1 1.
2,178,03 7 62
Direct Expenses 0.98 2.82

Consumable Stores & 64,485,77 67,849,598.7 73.

24
 0 17
Spares 7.60 83.44
22,702,841.1 24.
19,545,98 1 48
Repairs & Maintenance 8.37 25.29
12,972,565.4 13.
12,636,71 3 99
Quality Control Expenses 9.63 16.35

Research & Development   -

Expenses   -
19,405,099.5 20.
Technical know-how Fee / 22,102,92 9 93
Royalty 9.51 28.60
72,949,393.9 78.
47,998,80 6 67
Depreciation/Amortization 7.27 62.11
388,724,774.9 419.
Other Production 381,090,57 8 23
Overheads 6.08 493.12

Industry Specific - -
Operating Expenses * - -
2,464.
1,770,395,364 2,284,799,440.13 08
Total .59 2,290.85
Increase/Decrease in    
Work-in-Progress    
Less: Credits for    
Recoveries    
   
Primary Packing Cost    
2,464.
Cost of 1,770,395,364 2,284,799,440.13 08
Production/Operations .59 2,290.85
Cost of Finished Goods    
Purchased    
Total Cost of production 1,770,395,364 2,284,799,440.13 2464.078392
and purchases .59 2290.85
91,136,788.5
Increase/Decrease in Stock 124,531,21 5  
of Finished Goods 2.67  
(2,983,572,405.84
Less: Self/Captive (2,862,337,551 )  
Consumption .12)  
1,615,329,009 1,110,542,067.26  
Other Adjustments .37  
Cost of Production of 647,918,03 502,905,890.0 2,005.
Goods Sold 5.51 1,764.21 9 53

25
   -
Administrative Overheads   -

  -
Secondary Packing Cost   -

Selling & Distribution   -

Overheads   -

Interest & Financing   -

Charges   -
502,905,890.0 2,005.
647,918,03 9 53
Cost of Sales 5.51 1,764.21
713,023,598.1 2,843.
838,819,55 9 46
Net Sales Realization 2.70 2,284.02
210,117,708.1 837.
190,901,51 0 93
Margin [Profit/(Loss)] 7.19 519.80

FINDINGS-

 A cost sheet is used to compile the margin earned on a product or job, and can form
the basis for the setting of prices on similar products in the future.
 From the cost sheet of clinker of ACL for the year ended 2018, following
observations can be made –

1. In the year 2018 ACL has produced 772812 units of clinker ,the captive
consumption of clinker is 1622446 while the quantity sold is 367256
2. The total operating expenses of clinker for the year 2018 is 1770395364.59
rupees while the per unit operating cost is 2,290.85 rupees which is less as
compared to previous year .
3. In the year 2018 there has been decrease in the cost of production of clinker
i.e. 1770395364.59 rupees while an increase in the per unit cost of
production of clinker i.e. 2290.85 rupees as compared to previous year.
4. The cost of production of goods sold of clinker has increased to 647918035
rupees while the per unit cost goods sold has reduced to 176421 rupees.
5. There are no administration ,selling and distribution over heads, packing and
interest and financing cost associated with clinker thus the cost of sales of
clinker has increased to 647918035 rupees while the per unit cost of sales
reduced to 176421 rupees.
6. The net sale realization from clinker has increased to 83881955270 rupees
7. The profit margin of clinker for the year 2018 can be obtained from the
difference between the cost of sale and net sales of clinker which comes to be
190901517.19 rupees.

26
2. COST SHEET OF CEMENT

Quantitative details of cement

Year Production Finished Finished Captive Other Quantity
Goods Stock Consumption Adjustments Sold
Purchased Adjustment
Current 2,351,83 (877. ( 2,340,440
Year 0.00 - 6,426.58 71) 16,938.21) .66
Previous 2,164,43 (1,115. 2,153,020
Year 1.00 - (10,141.81) 00) (153.69) .50

  CURRENT YEAR 2018 PREVIOUS YEAR 2017

Particulars Amount Cost/Unit Amount Cost/Unit

  Rs. Rs. Rs.

Rs.
1,538.
3,208,267,282 1,36 3,330,328,469.28 66
Materials Consumed * .67 4.16

Process   -
Materials/Chemicals   -
507,789,407. 234.
506,190,96 21 61 61
Utilities * 0.61 5.23
7,641,866. 3
4,097,67 78 .53
Direct Employees Cost 1.00 1.74
57,900 0
.00 .03
Direct Expenses   -
88,614,592. 40.
Consumable Stores & 108,942,24 4 27 94
Spares 5.20 6.32
5,369,341. 2
10,087,71 81 .48
Repairs & Maintenance 0.17 4.29
5,559,670. 2
5,415,73 90 .57
Quality Control Expenses 6.98 2.30

Research & Development   -

Expenses   -

27
 12,901,982. 5
Technical know-how Fee / 9,472,68 42 .96
Royalty 4.08 4.03
77,113,588. 35.
79,508,94 3 16 63
Depreciation/Amortization 8.32 3.81
160,659,963. 74.
Other Production 163,947,95 6 78 23
Overheads 7.46 9.71

Industry Specific Operating - -

Expenses * - -
4,196,036,783. 1,938.
4,095,931,196 1,74 01 63
Total .48 1.59

Increase/Decrease in    
Work-in-Progress    

Less: Credits for    

Recoveries    
576,526,565.
614,280,57 73  
Primary Packing Cost 0.77  
4,772,563,348. 2,205.
Cost of 4,710,211,767 2,00 74 00
Production/Operations .25 2.79

Cost of Finished Goods    

Purchased    
4,772,563,348.
Total Cost of production 4,710,211,767 74 2205.00
and purchases .25 2002.8
(21,100,583.
Increase/Decrease in Stock (6,151,91 62)  
of Finished Goods 9.48)
(2,393,989
Less: Self/Captive (1,411,46 .36)  
Consumption 0.56)

-  
Other Adjustments -  
4,749,068,775. 2,205.
Cost of Production of 4,702,648,387 2,00 76 77
Goods Sold .22 9.30
353,535,958. 164.
355,188,15 15 32 20
Administrative Overheads 7.04 1.76

  -
Secondary Packing Cost   -

28
 2,755,896,271. 1,280.
Selling & Distribution 3,082,761,358 1,31 52 01
Overheads .61 7.17
708,075 0
Interest & Financing 1,468,43 .27 .33
Charges 8.66 0.63
7,859,209,080. 3,650.
8,142,066,341 3,47 87 32
Cost of Sales .52 8.86
8,578,473,539. 3,984.
8,816,797,252 3,76 83 39
Net Sales Realization .97 7.15
719,264,458. 334.
674,730,91 28 96 07
Margin [Profit/(Loss)] 1.45 8.29

FINDINGS-

 From the cost sheet of cement of ACL for the year ended 2018, following
observations can be made –

 In the year 2018 ACL has produced 2351830 units of cement, the captive
consumption of cement is 87771 while the quantity sold is 2340440.66.
 The total operating expenses of cement for the year 2018 is 409593196.48
rupees while the per unit operating cost is 174159 rupees which is less as
compared to previous year .
 In the year 2018 there has been a decrease in the cost of production and the
per unit cost of production of cement i.e. 4710211767.25 rupees and 2002.79
rupees respectively.
 The cost of production of goods sold and the per unit cost goods sold of
cement has decreased to 4702648387.22 rupees and 2009.30 rupees
respectively.
 There has been an increase in the administration ,selling and distribution over
heads, and a decrease in interest and financing cost associated with cement
thus the cost of sales of cement has increased to 8142066341.52 rupees
while the per unit cost of sales reduced to 3478.86 rupees.
 The net sale realization from cement has increased to 8816797252.97 rupees.
 The profit margin of cement for the year 2018 can be obtained from the
difference between the cost of sale and net sales of cement which comes to
be 674730911.45 rupees.

FINANCIAL ANALYSIS

FINANCIAL HIGHLIGHTS OF 5 YEARS

29
 Amount in ₹ crores
2018 2017 2016 2015 2014
INCOME STATEMENT
NET SALES 10240 9117 9368 9911 9097
OPERATING EBITDA 1940 1692 1532 1928 1667
PROFIT BEFORE TAX 1619 1279 1172 1783 1514
PROFIT AFTER TAX 1250 932 808 1496 1295

BALANCE SHEET
NET WORTH 19973 19356 10307 10103 9486
BORROWINGS 24 16 23 29 29
CAPITAL EMPLOYED 20499 19920 10946 10763 10121
FIXED ASSETS 5693 5932 6092 6227 6063
CURRENT ASSETS 5492 4214 6549 5995 5537
4117 3431
CURRENT LIABLITIES 3226 3138 2843

CASH FLOW STATEMENT

NET CASH GENERATED FROM 1854 1416 1553 1675 1287
OPERATIONS
CASH AND CASH 3311 2396
EQUIVALENTS 5032 4459 3961

2018 2017 2016 2105 2014

SIGNIFICANTS RATIOS
OPERATING EBITDA/ NET 19%
SALES 19% 16% 19% 18%
RETURN ON CAPITAL 8%
EMPLOYED 8% 12% 18% 16%

PRICE EARNING RATIO 43.08 43.93 39.02 23.65 21.79

BOOK VALUE PER SHARE 100.65 97.52 66.49 65.29 61.46
BASIC EARNING PER SHARE 6.69 4.69 5.21 9.67 8.39
DIVIDEND PER SHARE 3.60 2.80 2.80 5.00 3.60
DIVIDEND PAYOUT RATIO 65% 76% 65% 62% 50%
CURRENT RATIO 1.33 1.23 2.03 1.91 1.95

OPERATIONS
CEMENT CAPACITY - MILLION
TONNES 29.65 29.65 29.65 28.75 27.95
CEMENT PRODUCTION -
MILLION TONNES 22.98 21.19 21.54 21.43 20.96

30
COMPARITIVEBALANCE SHEET ANALYSIS OF ACL

Amount in ₹ crores

PARTIC NO CURR PREV ABSOL PERCE

ULARS TE ENT IOUS UTE NTAGE
S YEAR YEAR DIFFE DIFFER
RENCE ENCE
(%)
EQUITY
AND
LIABILI
TIES
Sharehold
ers’ funds
Share 397.13 310.38 86.75 27.94961
capital 016
Reserves 18676. 9996.4 8679.94 86.82987
and 43 9 729
surplus
19073. 10306. 8766.69 85.05676
56 87 311

Non-
current
liabilities
Long- 23.58 22.68 0.9 3.968253
term 968
borrowin
gs
Deferred 492.89 564.9 -72.01 -
tax 12.74738
liabilities 892
(net)
Other 7.95 5.99 1.96 32.72120
long-term 2
liabilities
Long- 45.28 35.4 9.88 27.90960
term 452
provision
s
569.7 628.97 -59.27 -
9.423342

31
 926

Current
liabilities
Trade 0.78 0.52 0.26 50
payables
Micro 896.2 679.3 216.9 31.92992
enterprise 787
s and
small
enterprise
s
Other 1464.2 1461.9 2.33 0.159378
current 6 3 356
liabilities
Short- 1249.7 1084.3 165.39 15.25259
term 3 4 605
provision
s
3610.9 3226.0 384.88 11.93023
7 9 133

TOTAL 23254. 14161. 9092.3 64.20240

23 93 744

ASSETS
Non-
current
assets
Fixed 5978.3 6091.7 -113.36 -
assets 6 2 1.860886
58
Tangible 0.29 0.31 -0.02 -
assets 6.451612
903
Intangible 320.02 414.12 -94.1 -
assets 22.72288
226
Capital 6298.6 6506.1 -207.48 -
work-in- 7 5 3.188982
progress 732

Non- 11844. 106.9 11737.8 10980.16

current 7 838
investmen
ts
Long- 682.64 720.71 -38.07 -
term 5.282291

32
loans and 074
advances
other non- 319.27 279.57 39.7 14.20037
current 915
assets
12846. 1107.1 11739.4 1060.300
61 8 3 042

CURRE
NT
ASSETS
current 1065.0 2119.2 -1054.21 -49.74
investmen 2 3
ts
inventorie 937.54 895.45 42.09 4.70
s
trade 300.08 286.36 13.72 4.79
receivable
s
cash and 1412.8 2848.3 -1435.52 -50.39
bank 7 9
balance
short term 358.92 336.26 22.66 6.738833
loans 046
other 34.52 62.91 -28.39 -
current 45.12796
assets 058
4108.9 6548.6 -2439.65 -
5 37.25452
769

TOTAL 23254. 14161. 9092.3 64.20240

23 93 744

FINDINGS –

 A comparative balance sheet analysis is a method of analysing a company's

balance sheet over time to identify changes and trends. 

 From the balance sheet of Ambuja Cements Limited the following observations can
be made:-

1. The share capital and reserves have increased in the year 2018 which has led to
85.05% increase in the shareholders fund i.e. 19,073.56 crore rupees.

33
2. There has been an increase in the long term borrowings ,liabilities and provisions
and a decrease in the differed tax liability which has led to 9.42 % decrease in
noncurrent liabilities of ACL in the year 2018 i.e. 569.70 crore rupees.

3. The trade payables, micro and small enterprises, current liabilities and short term
provisions have increased in the year 2018 which has led to 11.93 % increase in
the current liabilities i.e.3610.97 crore rupees.

4. This increase in shareholders fund and current liabilities and a decrease in

non-current liabilities has led to an overall increase of 64.20 % in the total
equity and liabilities of ACL i.e. 23,254 crore rupees.

5. It is also observed that in the year 2018 there has been a fall of 3.18 % in capital
work in progress which includes tangible, intangible and fixed assets of ACL
i.e.6298.67 crore rupees.

6. However there has been an increase in the non-current investment and other
noncurrent assets and a decrease in the long term loans and advances which has
led to a rise of 1060.30 % in the total non-current assets of ACL i.e. 12,846.61
crore rupees.

7. There has been an increase in the inventories, trade receivables ,short term loans
and a decrease in the current investments ,cash and bank balances and other
current assets which has led to a fall of 37.25 % in the total current assets of
ACL i.e. 4108.95 crore rupees.

8. The proportionate increase in the non-current assets of ACL is more as

compared to the proportionate decrease in the total current assets which has
led to an overall increase of 64.20% in the total assets of ACL i.e23254 crore
rupees.

34
SWOT ANALYSIS OF ACL

STRENGTH
●It has an operational experience of over
many decades.
●It is one of the leading cement
manufacturers in the country.
●It has a strong revenue year on year.
●Holcim, one of the world’s largest cement
manufacturers has a significant share in
Ambuja Cements.
WEAKNESS
●It exports cement to a limited number of
countries, as compared to its global
competitors.
●It deals primarily with cement and concrete
while many global players manufacture other
construction materials along with cement to
provide greater portfolio to the customers.

● Branding activities through TVCs, online

marketing etc. in India make it a prominent

35
brand.

● The company is also listed on NSE & BSE.

OPPORTUNITIES THREATS
● It can increase its global exports business
●It is facing strong competition from Indian and
by mergers and acquisitions.
Global players in cement sector.
●The government is promoting
Manufacturing sector in India which is a
● Increasing diesel price arethe another threat
huge opportunity for Ambuja cements and
which increase the transportation cost, which may
other manufacturing companies
create a material effect in freight and forwarding
cost.

COMPARITIVE ANALYSIS

AMBUJA, ULTARATECH AND SHREE CEMENT

AMBUJA CEMENT
Ambuja Cements Ltd. (ACL) is one of the leading cement manufacturing companies in India
and commenced cement production in 1986. Initially called Gujarat Ambuja Cements Ltd,
the Company later became Ambuja Cements Ltd. In 2006, global cement major Holcim,
acquired management control of the Company. Today, Holcim holds a little over 50% equity
in ACL.

ULTRATECH CEMENT 
UltraTech Cement was incorporated in 2000 as Larsen & Toubro Cement. Later it was
demerged and acquired by Grasim and was renamed as UltraTech Cement in 2004. Today
UltraTech Cement, an Aditya Birla Group Company and a 60.3% subsidiary of Grasim, is the
largest domestic cement player in the country and the 8th largest in the world

36
SHREE CEMENT 
Shree Cement, promoted by the Calcutta-based Bangur group, is North India's largest cement
producer with an installed capacity of 13.5 MTPA as of FY11. The company is an efficient
cement manufacturer and is the market leader in the north. It is also amongst the least cost
producers of cement in India and is almost self sufficient in meeting its power requirements.

Interpretation Of Data
Net Sales, Operating EBITDA

37
 12000

10000

8000

6000 net sales

operating EBITDA
4000

2000

0
2013 2014 2015 2016 2017

Profit Before Tax & Profit After Tax

2000
1800
1600
1400
1200
1000 Profit Before Tax
Profit After Tax
800
600
400
200
0
2013 2014 2015 2016 2017

Dividend per share, earning per share

38
 12

10

6 DPS
EPS
4

0
2013 2014 2015 2016 2017

Book value per share

120

100

80

60
Book value per share

40

20

0
2013 2014 2015 2016 2017

Fixed assets

39
 6300

6200

6100

6000

5900
Fixed asset
5800

5700

5600

5500

5400
2013 2014 2015 2016 2017

Cost and profit as per percentage of total income 2018

cost of material consumed Rs. 909

Cr
employees benefit expenses Rs.
661 Cr
depreciation and amortisation
expenses Rs. 573 Cr
power and fuel Rs.2334 Cr
freight and forwarding expenses
Rs. 2872 Cr
manufacturing and other cost Rs.
1831 Cr
finance cost rs 107 Cr
profit before tax Rs. 1619 Cr

GST- GOODS AND SERVICE TAX

40
GST- One nation one tax. GST has established one common market place for all.Tax
structure

i. State
ii. Central
 Components
i. CGST- Central Goods and Service Tax
ii. SGST- State Goods and Service Tax.
iii. IGST- Integrated Goods and Service Tax.

If sale or transfer of goods and services is done within the state, the calculation of GST is
done on the basis of summation of central and state GST.

For example- if rate of tax on a good is 28% and sale is done within the state, the amount to
be charged is to be divided in two equal parts i.e. 14% + 14%.

 WORKING OF GST

STAGE PURCHASE VALUE VALUE OF RATE GST INPUT NET GST

VALUE OF ADDITION GOODS AND OF ON TAX ON
GST / SERVICES GST OUT CREDIT OUTPUT
PROFIT AT NEXT PUT
STAGE

MANUFAC 50 80 130 20% 26 10 26- 10=16

TURER

DEALER 130 20 150 20% 30 26 30-26=4

41
 RETAILER 150 20 170 20% 34 30 34-30=4
Input tax rebate plays a very indispensable role in GST. The tax already paid
on input is thereafter reduced when tax on output is paid.
Input tax rebate can be claimed only when the assurance of both the parties i.e.
buyer and the seller is received.
 BENEFITS OF GST-
i. Elimination of multiple taxes.
ii. Cascading effect reduction
iii. Ease of business
iv. Help to build a corruption free tax administration.

 GST REGISTERATION

Registration of GST is compulsory for companies with minimum capital of:-

i. For North east + Sikkim , Rs. 10 lakhs

ii. For rest of India, Rs. 20 lakhs.
 CONSIDERATION – One has to pay tax even if he provides the service for
free of cost. For instance, if a lawyer feels not to receive remuneration in
return of a case solved by him, then too he has to pay tax for the same.
 NEW REGISTRATION
Basic information are to be provided which include –
PAN details
Phone number
Office agreements
Constitution of tax payer

42
 At the end- digital signature

Those who don’t prefer GST can choose COMPOSITIONSCHEME UNDER

GST to avoid tax and pay up to 1-2.5% of tax. When opting for the
Composition Scheme under GST, a taxpayer will be required to file
summarized returns on a quarterly basis, instead of three monthly returns (as
applicable for normal businesses). Those who prefer this are not liable to get
Input tax rebate as sufficient relaxation is already provided in tax.
 IMPACT OF GST ON RETAILER

 TAX INVOICE
i. Material-
Original (recipient)
Duplicate (transporter)
Triplicate (supplier)
ii. Service-
Original (recipient)
Duplicate (supplier)

 Harmonized System of Nomenclature (HSN) Codes –

Such codes are used forGST enrolment/registration purposes.
Commodities can be identified with the use of these codes. Tax rate appears
automatically as soon as HSN code is filled in the column.
 ACCOUNTS AND RECORDS TO BE MAINTAINED
1) Inward supply of goods/services

43
 2) Outward supply of goods and services
3) Stock of goods
4) Input tax credit availed
5) Output tax payable and paid.
THESE ARE TO BE KEPT UPTO ATLEAST SIX YEARS FROM
THE DATE THEY ARE PREPARED.

 DUE DATES OF RETURN

Up to 10th – outward sales/service GSTR-1

11th-15th – Inward sales/service GSTR-2

15th -17th – Amendments, if any for outward sales/service GSTR-1A

Up to 20th –Monthly return and discharge of tax GSTR-3

Up to 31st December- Annual filing GSTR-9

 Slabs in GST include rates – 0%, 5%, 12%, 18%, 28%

 ELECTRONIC WAY BILL- The transporter has to compulsorily carry this
bill with him at the time of transporting goods. If not, he has to pay the
penalty.
 SOME IMPORTANT POINTS-
Both buyer and seller have to be sure about filing return on time. If not so, the
benefit of Input tax rebate cannot be filed.
GST is to be calculated till the place where the registered office of the buyer,
not till the place where the supply is done.

IMPLICATIONS OF GST ON ACL

 CEMENT IS SOLD ON EX WORKS/FOR BASIS –

GST is applicable on transaction value. No separate concept of FOR and EX
works supply.
 SALE TO SEZ/EOU/EXPORT –
Tax invoice with IGST shall be issued. 90% refund within 7 days.
 DAMAGED CEMENT –
Return of damaged cement by warehouse/3 rd party will be done by tax invoice if
returned from stock.
 INCENTIVE SCHEME –
No scheme of incentive in GST. Commitment given by state govt. has to

44
 reimburse industry by way of budgetary allocation.

CONCLUSION-
One month of summer training under the guidance of Mr.VishwasSoni sir made us to
discover a lot of things related to finance and costing of any industry. Ambuja cement follows
the strategy of utmost care of its employees. The company follows ‘SAFETY FIRST
PRODUCTION NEXT’ approach. The financial position of the company is stable and adding
stars in the sky. The company follows a procedure of process costing.

As the objective financial highlights of 5 years sales reduces in 2015 but in 2018 sales goes
highest as it was not in previous years. Costing has many methods to identify cost but
Ambuja Cements use process costing. The changes and trends over time in balance sheet also
affects Ambuja Cements records

Additionally, we got to know about the most burning topic among all companies i.e. about
‘GST’.

Thanking Mr.MrunalSusari sir and Mr.ArunSenfor their utmost support and permitting for
one month summer training course. Special thanks to Mr.VishwasSoni sir for being a great
guardian at every step during the internship.

45
SUGGESTION

 11.93% 1ncrese in the current liabilities i.e. 3610.97 crore rupees due to raise in
trade payables, short term provisions so company has to decrease it.
 It was observed that fall of 3.18% in capital work in progress so company has
to increase tangible, intangible and fixed assets.
 As current assets has led to a fall of 37.25% in the total current assets of ACL
i.e. 4108.95 crore rupees s company should decrease inventories, trade
receivables, short term loans and increase current investments, cash and bank
balance and others current assets.

46
BIBLIOGRAPHY

BOOKS

Fundamentals of financial management by Dr.R.P.Rustagi.

Cost Accounting: Principles and Practice, by M N Arora.

REPORTS:

AMBUJA CEMENT ANNUAL REPORT 2018

AMBUJA CEMENT ANNUAL REPORT 2017
AMBUJA CEMENT ANNUAL REPORT 2016
AMBUJA CEMENT ANNUAL REPORT 2015
AMBUJA CEMENT ANNUAL REPORT 2014
.
WEBSITES:-
www.investopedia.com
www.businessdictionary.com

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2342460

https://pdfs.semanticscholar.org/b9b3/ab259c45ce4354d3368b37ebfda3ff20adfb.pd
f
http://journals.sagepub.com/doi/abs/10.1177/0971890720090206

http://journals.sagepub.com/doi/abs/10.1177/09721
https://papers.ssrn.com5091001100205/sol3/papers.cfm?abstract_id=2362751
http://growingscience.com

47
http://growingscience.com

ACKNOWLEDGEMENT

I take the opportunity to express my gratitude to all of them who in some or the other way
helped me to accomplish this challenging project. No words are sufficient enough to show
my deepest sense of gratitude to them. I sincerely thanks my faculty guide Prof. Haradhan
Das for his valuable guidance and support on completion of this project.

I would like to extend my heartiest gratitude towards Mr. Manoj Kumar Jha for his support
and time to time guidance due to which I am able to complete my project.

I express my gratitude to Ms. Anita Tiwari whose support and guidance helped me to
complete the project successfully.

I would like to thank my corporate guide Mr.Tilakram Baghel whose assistance and
supervision were crucial in completion of the project.

A special “Thank You” in accorded to all employees of Ambuja cements, Bhatapara for
their positive support and assistance. I also acknowledge with a deep sense of reverence, my
gratitude towards my parents and member of my family, who has always supported me
morally as well as economically. I am fortunate to have got an opportunity to undergo the
“Internship” at Ambuja cements, the project has been very useful for me in understanding the
various aspects of the organizational culture and functions inside the unit. I accept the sole
responsibility for any possible error of omissions and would be extremely grateful to the
readers of this project report if they bring such mistakes to my notice. I would like to thank
all those people who have shared their views about my work, provided me with necessary

48
information and appreciated my work. This acknowledgement is not enough to tell them how
profound the impact of their opinion on this report, I express my heartiest gratitude to all of
them.

49