Financial Report Analysis of Ultratech Cements LTD and ACC Cements LTD

Table of Contents
Industry Analysis and Trend............................................................................................................4
Introduction to the companies..........................................................................................................7
ACC Ltd.......................................................................................................................................8
UltraTech Cements Ltd..............................................................................................................10
Financial Highlights.......................................................................................................................11
A) Sales.....................................................................................................................................12
B) Profit before depreciation, interest and tax...........................................................................13
C) Profit before depreciation and tax.........................................................................................14
D) Profit after tax.......................................................................................................................15
E) Dividend per Share................................................................................................................16
F) Earnings per share (Basic).....................................................................................................17
G) Book Value per Share...........................................................................................................18
H) Net Worth.............................................................................................................................19
I) Total Assets............................................................................................................................20
Accounting Policies.......................................................................................................................21
ACC Ltd.....................................................................................................................................22
Capital Structure Analysis.............................................................................................................38
ACC Ltd.....................................................................................................................................39
Share Holding Pattern....................................................................................................................45
ACC Ltd.....................................................................................................................................46
Ratio Analysis................................................................................................................................52
1
Liquidity Ratios.........................................................................................................................54
Current Ratio..........................................................................................................................55
Quick Ratio (Acid - Test Ratio).............................................................................................56
Leverage Ratios.........................................................................................................................57
Debt - Equity Ratio................................................................................................................58
Capital Employed to Net worth Ratio....................................................................................59
Fixed Interest Coverage Ratio...............................................................................................60
Profitability Ratios.....................................................................................................................61
Net Profit Ratio......................................................................................................................62
Operating Profit Ratio............................................................................................................63
Operating Ratio......................................................................................................................64
Expenses Ratio.......................................................................................................................65
Return on Shareholders’ Funds OR Return on NW..............................................................66
Return on Total Assets...........................................................................................................67
Return on Capital Employed (ROCE)...................................................................................68
Turnover Ratios.........................................................................................................................69
Inventory Turnover Ratio......................................................................................................70
Fixed Assests Turnover Ratio................................................................................................71
Working Capital Turnover Ratio...........................................................................................72
Total Assets Turnover Ratio..................................................................................................73
Net Worth Turnover Ratio.....................................................................................................74
Debtors Turnover Ratio.........................................................................................................75
Valuation Ratios........................................................................................................................76
Dividend Yield Ratio.............................................................................................................77
Dividend Payout Ratio...........................................................................................................78

Price Earnings Ratio..............................................................................................................79
Earnings per Share.................................................................................................................80
Dividend per Share................................................................................................................81
Common size Statement................................................................................................................82
ACC Cements Ltd......................................................................................................................85
Awards and Achievements............................................................................................................87
ACC Ltd.....................................................................................................................................88
Conclusion.....................................................................................................................................95
Annexure........................................................................................................................................97
Industry Analysis and Trend
Cement being the most necessary components in any kind of construction activity, the
cement industry plays a crucial role in developing a country’s infrastructure. Construction
activities carried out by Central Government, State Governments, Public Sector Undertaking,
and other organizations including the private sector generate a huge demand for cement because
of the vast geographical size and massive population of India.
The Indian cement industry is the second largest cement producer in the world next to
China. India’s share in the total production of cement is the world is around 6%. It consists of
154 large cement plants with an installed capacity of 230.82 million tons per annum employing
135,000 people directly.
The cement production growth touched a peak of 12% in 2009-10, as against 7.9% in
2008-09. The Indian cement industry is likely to achieve a capacity of 298 million tons per
annum by the end of 2011-12. According to the Ministry of Industrial Policy and Promotion an
investment of approximately Rs. 500 crore is required for creating a capacity of 1 million ton.
According to the Ministry of Industrial Policy and Promotion, cement industry in India
recorded a commendable growth of around 8% in 2007-08, as well as in 2008-09. In 2009-10,
the pace of growth of the industry accelerated above double digit.
Production from large plants (with capacity of above 1 million ton per annum) account to
88% of the total production.
The major players in the Indian cement industry are
 A.C.C. Ltd.
 Grasim Industries
 Ambuja Cements Ltd.
 UltraTech Cements Ltd.
 India Cements
 Jaypee Group
 Shree Cement
 J.K. Group
 Madras Cements
 Century Textiles
 Dalmia Cement
Market
S. No. Group Installed Capacity as on Cement Production Share
(%)
1 A.C.C. Ltd. 22.41 20.95 10.73
2 Grasim Industries 19.65 16.32 9.82
3 Ambuja Cements Ltd. 18.30 18.01 9.44
4 UltraTech Cement Ltd. 21.90 15.86 8.53
5 India Cements 10.74 9.11 5.11
6 Jaypee Group 9.93 8.05 4.95
7 Shree Cement 9.10 7.78 4.72
8 J.K. Group 9.37 7.50 4.06
9 Madras Cements 8.92 6.27 4.04
10 Century Textiles 7.80 7.22 3.83
11 Dalmia Cement 6.50 3.38 2.12
Introduction to th companies
e
ACC Ltd
ACC (ACC Limited) is India's foremost manufacturer of cement and concrete. ACC's
operations are spread throughout the country with 16 modern cement factories, more than 40
Ready mix concrete plants, 21 sales offices, and several zonal offices. It has a workforce of
about 9,000 persons and a countrywide distribution network of over 9,000 dealers.
Since inception in 1936, the company has been a trendsetter and important benchmark for
the cement industry in many areas of cement and concrete technology. ACC has a unique track
record of innovative research, product development and specialized consultancy services. The
company's various manufacturing units are backed by a central technology support services
centre - the only one of its kind in the Indian cement industry.
ACC has rich experience in mining, being the largest user of limestone. As the largest
cement producer in India, it is one of the biggest customers of the domestic coal industry, of
Indian Railways, and a considerable user of the country’s road transport network services for
inward and outward movement of materials and products.
Among the first companies in India to include commitment to environmental protection

as one of its corporate objectives, the company installed sophisticated pollution control
equipment as far back as 1966, long before pollution control laws came into existence. Today
each of its cement plants has state-of-the art pollution control equipment and devices.
ACC plants, mines and townships visibly demonstrate successful endeavors in quarry
rehabilitation, water management techniques and ‘greening’ activities. The company actively
promotes the use of alternative fuels and raw materials and offers total solutions for waste
management including testing, suggestions for reuse, recycling and co-processing.
ACC has taken purposeful steps in knowledge building. We run two institutes that offer
professional technical courses for engineering graduates and diploma holders which are relevant
to manufacturing sectors such as cement. The main beneficiaries are youth from remote and
backward areas of the country.
ACC has made significant contributions to the nation building process by way of quality
products, services and sharing expertise. Its commitment to sustainable development, its high
ethical standards in business dealings and its on-going efforts in community welfare programs
have won it acclaim as a responsible corporate citizen. ACC’s brand name is synonymous with
cement and enjoys a high level of equity in the Indian market. It is the only cement company that
figures in the list of Consumer Super Brands of India.
UltraTech Cements Ltd
UltraTech Cement Limited has an annual capacity of 48.8 million tons. It manufactures
and markets Ordinary Portland Cement, Portland Blast Furnace Slag Cement and Portland
Pozzalana Cement. It also manufactures ready mix concrete (RMC).
The company has 11 integrated plants, one white cement plant, one clinkerisation plant in
UAE, 15 grinding units – 11 in India, 2 in UAE, one in Bahrain and Bangladesh each and five
terminals — four in India and one in Sri Lanka.
UltraTech Cement is the country’s largest exporter of cement clinker. The export markets
span countries around the Indian Ocean, Africa, Europe and the Middle East.
UltraTech's subsidiaries are Dakshin Cements Limited, Harish Cements Limited, UltraTech
Cement Lanka (Pvt.) Ltd, and UltraTech Cement Middle East Investments Limited.
Financial Highlights
A) Sales
Sales
14000.00
12000.00
10000.00
Rs. (In Crore)
8000.00
6000.00 Sales of Ultrarech

Sales of ACC
4000.00
2000.00
0.00
2005-062006-072007-082008-092009-102010-11
B) Profit before depreciation, interest and tax
PBDIT
3000.00
2500.00
PBDIT of Ultrarech
PBDIT of ACC
Rs. (In Crore)
2000.00
1500.00
1000.00
500.00
0.00
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
C) Profit before depreciation and tax
PBDT
3000.00
2500.00
Rs. (In Crore)
2000.00
1500.00 PBDT of Ultrarech

PBDT of ACC
1000.00
500.00
0.00
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
D) Profit after tax
PAT
1800.00
1600.00
1400.00
Rs. (In Crore)
1200.00
1000.00 PAT of Ultrarech

PAT of ACC
800.00
600.00
400.00
200.00
0.00
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
E) Dividend per Share
Dividend Per Share

35.00
30.00
25.00
Rs. per Share
20.00
15.00 DPS of Ultrarech

DPS of ACC
10.00
5.00
0.00
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

F) Earnings per share (Basic)
EPS
100.00
90.00
80.00
70.00
60.00
Rs. per Share
50.00
40.00
EPS (Basic) of Ultrarech

EPS (Basic) of ACC
30.00
20.00
10.00
0.00
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

G) Book Value per Share
Book Value per Share

450.00
400.00
350.00
300.00
Rs. (In Crore)
250.00
200.00
150.00
Book Value per Share of Ultrarech

Book Value per Share of ACC
100.00
50.00
0.00
H) Net Worth
Net Worth
12000.00
10000.00
Rs. (In Crore)
8000.00
6000.00 Net Worth of Ultrarech

Net Worth of ACC
4000.00
2000.00
0.00
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
I) Total Assets
Total Assets
18000.00
16000.00
14000.00
Rs (In Crore)
12000.00
10000.00 Total Assets of Ultrarech

Total Assets of ACC
8000.00
6000.00
4000.00
2000.00
0.00
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
Accounting Policies
ACC Ltd.
(I) Basis of preparation
(i) The financial statements of the Company are prepared under the historical cost convention on
accrual basis of accounting and in accordance with the accounting principles generally accepted
in India and in compliance with the provision of the Companies Act, 1956 and comply with the
mandatory accounting standards (AS) specified in Companies (Accounting Standard) Rules,
2006 prescribed by the Central Government of India.
(ii) Financial statements are based on historical cost and are prepared on accrual basis, except
where impairment is made and revaluation is carried out.
(iii) Accounting policies have been consistently applied by the Company.
(II) Use of estimates
The preparation of financial statements in conformity with generally accepted accounting

principles requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial
statements and the results of operations during the reporting period end. Although these
estimates are based upon management’s best knowledge of current events and actions, actual
results could differ from these estimates.
(III) Significant Accounting Policies
A) Revenue recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the
Company and the revenue can be reliably measured.
Sale of goods
(i) Revenue is recognized when the significant risks and rewards of ownership of the goods have
passed to the buyer.
(ii) Income from jobs and other services rendered is accounted for as per the terms of contract.
Interest and Dividend Income Interest income is recognized on a time proportion basis taking
into account the amount outstanding and the rate applicable. Dividend income is recognized
when the shareholders’ right to receive dividend is established by the Balance Sheet Date.
B) Accounting of claims
(i) Claims receivable are accounted at the time when such income has been earned by the
Company depending on the certainty of receipts. Claims payable are accounted at the time of
acceptance.
(ii) Claims raised by Government Authorities regarding taxes and duties, which are disputed by
the Company, are accounted based on the merits of each claim.
C) Fixed assets
(i) Fixed assets are stated at cost of acquisition or construction less accumulated depreciation,
impairment losses.
(ii) Depreciation
The useful life of transit mixers and pumps is estimated at 8 years and 6 years respectively.
Buildings, civil cost and installations are estimated to have useful life of 10 years. These assets
are depreciated over the useful life on straight line method on a pro-rata basis. The above assets,
if transferred from ACC Limited, under the business purchase agreement, are depreciated over
the remaining useful life considering the period for which ACC Limited has already used such
assets. Useful life of certain assets is tailored based upon the commercial agreements and the
carrying amount of such assets is allocated over their useful life. In case of Plant & Machinery
and Electrical installation at the Ready mixed concrete plants, depreciation has been provided on
triple shift basis for the entire year even though the plants have worked only double and single
shifts at various times, based on assessment of estimated useful life.
All other assets are depreciated on the straight line method at the rates prescribed in Schedule
XIV of the Companies Act, 1956, on a pro-rata basis.
(iii) Cost of leasehold land is amortized over the period of lease.
D) Intangibles
Software cost is amortized over a period of three years.
E) Impairment
An impairment loss is charged to the Profit and Loss Account wherever the carrying amount of
an asset exceeds its estimated recoverable amount. Previously recognized impairment loss is
further provided or reversed depending on changes in circumstances.
F) Expenditure during construction period In case of new projects expenditure incurred,

including trial production expenses net of revenue earned, prior to commencement of
commercial production are capitalized.
G) Investments
Current investments are carried at the lower of cost or fair value. Long term investments are
stated at cost. Provision for diminution in the value of long-term investments is made only if
such a decline is other than temporary.
H) Leases
Lease payments under operating lease are recognized as an expense in the Profit and Loss
Account on a straight-line basis over the lease term.
I) Inventories
Raw materials, fuel, stores and spares are valued at lower of cost and net realizable value.
However, materials and other items held for use in the production of inventories are not written
down below cost if the finished products in which they will be incorporated are expected to be
sold at or above cost. Cost is determined on a weighted average basis.
Net realizable value is the estimated selling price in the ordinary course of business, less
estimated costs of completion and estimated costs necessary to make the sale.
J) Foreign currency transactions
Foreign currency transactions are recorded at the rates of exchange prevailing on the date of
transactions. Foreign currency monetary items are reported using the closing rate. Non-monetary
items which are carried in terms of historical cost denominated in a foreign currency are reported
using the exchange rate at the date of the transaction. Exchange differences arising on the
settlement of monetary items or on reporting company’s monetary items at rates different from
those at which they were initially recorded during the year, or reported in previous financial
statements, are recognized as income or as expenses in the year in which they arise.
K) Employee benefits
(i) Defined Contribution Plan
Defined contribution plan consists of Government Provident Fund Scheme and Employee State
Insurance scheme. Company’s contribution paid / payable during the year under these schemes
are charged to Profit and Loss Account. There are no other obligations other than the
contribution made by the company.
(ii) Defined Benefit Plan
Company’s liabilities towards gratuity, additional gratuity and long term compensated absences
are the defined benefit plans. Company’s liabilities towards these are determined using the
projected unit credit method which considers each period of service as giving rise to an
additional unit of benefit entitlement and measures each unit separately to build up the final
obligation. Actuarial gain and losses are recognized immediately in the statement of Profit and
Loss account as income or expense. Obligation is measured at the present value of estimated
future cash flow using a discount rate that is determined by the reference to market yields at the
Balance Sheet date on Government bonds.
(iii) Other employee benefit
Company’s liability towards silver jubilee and long service awards is determined on the basis of
period of service as at Balance Sheet Date.
L) Income Taxes
Tax expense comprises of current, deferred and fringe benefit tax. Current income tax and fringe
benefit tax is measured at the amount expected to be paid to the tax authorities in accordance
with the Indian Income Tax Act. Deferred Income Tax reflects the impact of current year timing
differences between taxable income and accounting income for the year and reversal of timing
differences of earlier years.
Deferred Tax is measured based on the tax rates and the tax laws enacted or substantively
enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that there
is reasonable certainty that sufficient future taxable income will be available against which such
deferred tax assets can be realized. In situations where the Company has unabsorbed depreciation
or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty
supported by convincing evidence that they can be realized against future taxable profits.
Deferred Tax Assets are reviewed at each Balance Sheet date.
M) Contingencies / Provisions
A provision is recognized when an enterprise has a present obligation as a result of past event; it
is probable that an outflow of resources embodying economic benefit will be required to settle
the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted
to its present value and are determined based on best estimate required to settle the obligation at
the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the
current best estimates. A contingent liability is disclosed, unless the possibility of an outflow of
resources embodying the economic benefit is remote.
UltraTech Cements Ltd.
Significant Accounting Policies:
1. Basis of Accounting:
The financial statements are prepared and presented under the historical cost convention
on accrual basis of accounting in accordance with the Generally Accepted Accounting Principles
(GAAP) in India and comply in all material aspects with the Accounting Standards (AS) notified
under the Companies (Accounting Standard) Rules, 2006 (as amended), to the extent applicable,
other pronouncements of the Institute of Chartered Accountants of India and with the relevant
provisions of the Companies Act, 1956.
2. Use of estimates:
The preparation of financial statements in conformity with the GAAP requires estimates
and assumptions to be made that affect the reported amounts of assets and liabilities on the date
of the financial statements, the reported amounts of revenues and expenses during the reported
period and the disclosures relating to contingent liabilities as of the date of the financial
statements. Any revision to accounting estimates is recognized prospectively in the current and
future periods. Difference between actual results and estimates are recognized in the period in
which the results are known or materialize.
3. Fixed Assets:
Fixed assets, whether tangible or intangible, are stated at cost less accumulated
depreciation/ impairment loss (if any), net of Modvat/Cenvat (wherever claimed). The cost of
fixed assets includes taxes, duties, freight and other incidental expenses incurred in relation to
their acquisition and bringing the assets for their intended use. Advances paid towards the
acquisition of fixed assets outstanding at each balance sheet date and the cost of fixed assets not
ready for their intended use before such date are disclosed under capital work-in-progress. Fixed
Assets held for disposal are stated at lower of net book value and net realizable value.
4. Treatment of expenditure during construction period:
Expenditure/Income, during construction period is included under Capital-Work-in-

Progress and the same is allocated to the respective Fixed Assets on the completion of their
construction.
5. Foreign Currency Transactions:
(i) Transactions denominated in foreign currency are recorded at the exchange rate prevailing on
the date of the transaction. Monetary assets and liabilities denominated in foreign currency at the
balance sheet date are translated at the year-end rates.
(ii) In respect of Forward exchange contracts, premium or discount, being the difference between
the forward exchange rate and the exchange rate at the inception of contract is recognized as
expense or income over the life of the Contract.
(iii) Exchange difference including premium or discount on forward exchange contracts, relating
to borrowed funds, liabilities and commitments in the foreign currency for acquisition of fixed
assets, arising till the assets are ready for their intended use, are adjusted to cost of fixed assets.
Any other exchange difference either on settlement or translation is recognized in the Profit and
Loss account.
(iv) Investment in equity capital of companies registered outside India is carried in the Balance
Sheet at the rates at which transactions have been executed.
6. Derivatives:
Financial Derivative Instruments
Derivative instruments are used to hedge risk associated with foreign currency fluctuations and
interest rates. The derivative contracts are closely linked with the underlying transactions and are
intended to be held to maturity. These are accounted on the date of their settlement and realized
gain/loss in respect of settled contracts is recognized in the Profit and Loss Account. Commodity
Hedging The realized gain or loss in respect of commodity hedging contracts, the pricing period
of which has expired or contracts cancelled during the year are recognized in the Profit and Loss
Account. However, in respect of contracts, the pricing period of which extends beyond the
Balance Sheet date, suitable provision for likely loss, if any, is made in the accounts.
7. Investments:
Investments are classified into long term investments and current investments. Long-term
investments are carried at cost after deducting provisions made, if any, for diminution in value of
investments other than temporary, determined separately for each individual investment. Current
investments are carried at lower of cost and fair value, determined separately for each individual
investment.
8. Inventories:
Inventories are valued at the lower of weighted average cost and estimated net realizable value
except waste/scrap which is valued at net realizable value. Cost of finished goods and process
stock includes cost of conversion and other costs incurred in bringing the inventories to their
present location and condition.
9. Depreciation and Amortization:
Depreciation is charged in the Accounts on the following basis:
(A) Tangible Assets:
(i) Depreciation is provided on the straight-line basis at the rates and in the manner prescribed in
Schedule XIV to the Companies Act, 1956 except for some of assets at the rates based on the
useful life of the assets as determined by the management, which are higher than the rates
specified in Schedule XIV to the Companies Act, 1956, as stated under:
(a) Company Vehicles other than those provided to the employees at 20% per annum.
(b) Roads, Culverts, Walls, Buildings etc. within factory premises at 3.34% per annum.
(c) Computer and Office Equipments at 25% per annum
(d) Furniture and Fixtures – 7 years
(e) Mobile Phones – 3 years
(f) Motor Cars given to the employees as per the Company’s Scheme are depreciated over the
Scheme period.
(ii) Assets acquired up to September 30, 1987, are depreciated at the rates prevailing at the time
of acquisition.
(iii) The value of leasehold land and mining lease is amortized over the period of the lease.
(iv) Assets not owned by the Company are amortized over a period of five years or the period
specified in the agreement.
(v) Expenditure incurred on Jetty is amortized over the period of the relevant agreement such
that the cumulative amortization is not less than the cumulative rebate availed by the Company.
(vi) Depreciation on additions is provided on a pro-rata basis from the month of installation or
acquisition and in case of project from the date of commencement of commercial production,
while depreciation on deductions/disposals is provided on a pro-rata basis up to the month
proceeding the month of deductions/disposals.
(vii) Depreciation is charged on Straight Line basis at UltraTech Cement Middle East Investment
Limited and its subsidiaries at following rates.
Tangible Assets: No. of Years
Buildings (including improvements) 3-15
Plant and equipment 2-20
Furniture, fixtures and office equipment 1-5
Motor vehicles 3-5
Amortization of intangible Assets 8.5
(B) Intangible Assets:
Specialized software is amortized over a period of 3 years.
10. Impairment of Assets:
The carrying amounts of assets are reviewed at each balance sheet date if there is an
indication of impairment based on the internal and external factors. An asset is treated as
impaired when the carrying cost of the asset exceeds its recoverable amount. An impairment
loss, if any, is charged to the Profit and Loss Account in the year in which the asset is identified
as impaired. Reversal of impairment loss recognized in prior years is recorded when there is an
indication that impairment loss recognized for the asset no longer exists or has been decreased.
11. Employee Benefits:
(i) Short term employee benefits.
Short term employee benefits are recognized as an expense on accrual at the

undiscounted amount in the Profit and Loss Account.
(ii) Defined Contribution Plan
Contributions payable to recognize provident fund and approved superannuation

scheme, which are defined contribution plans, are recognized as expense in the Profit and Loss
Account; as they are incurred. Contributions as specified by the law are paid to the provident
fund set up as irrevocable trust by the holding company. The Company is generally liable for
annual contribution and any shortfall in the fund assets based on the Government specified
minimum rates of return and recognizes such contribution and shortfall, if any, as an expense in
the year incurred.
(iii) Defined Benefit Plan
The obligation in respect of defined benefit plans, which cover Gratuity, Pension
and Post retirement medical benefits, are provided for on the basis of an actuarial valuation,
using the projected unit credit method, at the end of each financial year. Gratuity is funded with
an approved fund. Actuarial gains/losses, if any, are recognized immediately in the Profit and
Loss Account. Obligation is measured at the present value of estimated future cash flows using a
discount rate that is based on the prevailing market yields of Government of India securities as at
the balance sheet date for the estimated term of the obligations.
(iv) Other Long Term Benefits
Long-term compensated absences are provided for on the basis of an actuarial

valuation, using the projected unit credit method, at the end of each financial year. Actuarial
gains/losses, if any, are recognized immediately in the Profit and Loss Account.
12. Borrowing Costs:
Borrowing costs that are attributable to the acquisition or construction of a qualifying

asset are capitalized as part of the cost of such asset till such time the asset is ready for its
intended use. A qualifying asset is an asset that necessarily takes a substantial period of time to
get ready for its intended use. All other borrowing costs are recognized as an expense in the
period in which they are incurred. The difference between the face value and the issue price of
‘Discounted Value Non-Convertible Debentures’, being in the nature of interest, is charged to
the profit and loss account, on a compound interest basis determined with reference to the yield
inherent in the discount.
13. Taxation:
Current Tax is measured on the basis of estimated taxable income for the current
accounting period and tax credits computed in accordance with the provisions of the Income Tax
Act, 1961. Deferred Tax resulting from “timing differences” between book and taxable profit for
the year is accounted for using the tax rates and laws that have been enacted or substantively
enacted as on the balance sheet date. Deferred tax assets are recognized and carried forward only
to the extent that there is reasonable certainty, except for carried forward losses and unabsorbed
depreciation which is recognized based on virtual certainty, that the assets will be realized in
future.
14. Revenue Recognition:
(i) Sales Revenue is recognized on transfer of significant risks and rewards of ownership
of the goods to the buyer. Sales are net of Sales Tax, VAT, trade discounts, rebates and returns
but include excise duty.
(ii) Income from services is recognized as they are rendered, based on

agreement/arrangement with the concerned parties.
(iii) Dividend income on investments is accounted for when the right to receive the
payment is established. Interest income is recognized on accrual basis.
(iv) Export Incentives, insurance, railway and other claims, where quantum of accruals
cannot be ascertained with reasonable certainty, are accounted on acceptance basis.
15. Mines Restoration Expenditure:
The Company provides for the estimated expenditure required to restore quarries and
mines. The total estimate of restoration expenses is apportioned over the estimate of mineral
reserves and a provision is made based on minerals extracted during the year. The total estimate
of restoration expenses is reviewed periodically, on the basis of technical estimates.
16. Provisions, Contingent Liabilities and Contingent Assets:
Provisions are recognized when there is a present obligation as a result of past events and
it is probable that an outflow of resources will be required to settle the obligation, in respect of
which a reliable estimate can be made. These are reviewed at each Balance Sheet date and
adjusted to reflect the current best estimate. Contingent Liabilities are not recognized but are
disclosed and Contingent Assets are neither recognized nor disclosed, in the financial statements.
17. Employees Share based payments:
The Company follows intrinsic value method for valuation of Employees Stock Options.
The excess of the market price of shares at the time of grant of options, over the exercise price to
be paid by the option holder is considered as employee compensation expense and is amortized
in the Profit and Loss account over the period of vesting, adjusting for the actual and expected
vesting.
18. Earnings Per Share:
The basic Earnings Per Share (“EPS”) is computed by dividing the net profit after tax for
the year attributable to the equity shareholders by the weighted average number of equity shares
outstanding during the year. For the purpose of calculating diluted earnings per share, net profit
after tax for the year attributable to the equity shareholders and the weighted average number of
equity shares outstanding during the year is adjusted for the effects of all dilutive potential equity
shares.
19. Government Grants and Subsidies:
(i) Government grants and subsidies are recognized when there is reasonable assurance
that the Company will comply with the condition attached thereto and that the grants will be
received.
(ii) Capital Government Grants or Subsidies relating to specific fixed assets are deducted
from the gross value of the respective fixed assets and capital grants for projects are credited to
Capital Reserve.
(iii) Revenue Government Grants or Subsidies relating to an expense item are recognized
as income over the period to match them on a systematic basis to the costs or deducted from
related expenses.
20. Segment Reporting Policies:
Primary Segment is identified based on the nature of products and services, the different
risks and returns and the internal business reporting system. Secondary segment is identified
based on geography in which major operating divisions of the Company operate.
21. Research and development expenditure:
Revenue expenditure on research and development is expensed as incurred. Capital

expenditure incurred on research and development is capitalized as fixed assets and depreciated
in accordance with the depreciation policy of the Company.
22. Operating lease:

Leases where significant portion of the risks and rewards of ownership are retained by the
lessor are classified as operating leases and lease rentals thereon are charged to the Profit and
Loss Account
23. Goodwill:
Goodwill arising out of consolidation of financial statements of Subsidiaries and joint

Ventures is not amortized. However the same is tested for impairment at each Balance Sheet
Date.
Capital Structure Analysis
ACC Ltd.
Unsecured Unsecured Dec '08

8%1% Share Capital 3%
Secured LoansLoansLoans
1%
Share Capital
Reserves and Surplus Secured Loans
rplusUnsecured Loans
Reserves and
Surplus 88%
 Reserves and Surplus amount to 88% of the capital

 Equity Capital amounts to 3% of the capital
 Loans amount to 9% of the capital
It shows that the company is highly efficient as it relies mostly on the funds generated
by it. Loans are used to have the benefits of leverage.
Unsecured
Unsecured
Loans
Dec '09
Loans 0%
0% Share Capital
Secured Loans3%
8%
Share Capital
Reserves and Surplus Secured rplus
Loans Unsecured Loans
Reserves and
Surplus 89%

No major change is observed in the capital structure. Reserves and Surplus have
increased by 1% and Loans have reduced by 1%.
Unsecured
Dec '10
Unsecured
Secured Loans Loans
Loans 0% Share Capital
7% 0%
3%
Share Capital
rplus
Reserves and Surplus
Reserves
Secured Loans Unsecured Loans
and Surplus 90%
s

Again, no major change is observed from last year but since December 2010 the
Loans have reduced by 2% and Reserves and Surplus has increased by 2%.
March '09
Unsecured Share Capital 2%
Share Capital
Loans 17%
2%
Share Capital
Reserves Reserves and Surplus Secured Loans
rplusUnsecured Loans
and Surplus 61%
Secured Loans
20%

It shows that the company is efficient as 61% of its capital relies on Reserves and
Surplus. Loans amount to 37% of the capital which could be expensive and may have a
high impact on the earnings per equity share.
d
March '10
Unsecured Share Capital 2%
Loans 12%
Secured Loans
14%
Share Capital
rplus
Reserves
and Surplus 72% Secured Loans Unsecured Loans

Loans have reduced by 11% which shows that the debt on the company has reduced
and more earnings per share can be generated. Reserves and Surplus have increased by
11% which is a free source of capital. The capital structure has improved this year.
March '11
Share Capital 2%
UnsecuredShare Capital
Loans 9% 2%
Secured
Loans 19%
Share Capital
rplus
Reserves
and Surplus 70% Secured Loans Unsecured Loans
s

Once again the company has increased the loans to utilize the benefits of leverage.
The unsecured loans have reduced by 3% meanwhile secured loans have increased by
5%. Reserves and Surplus has reduced by 2%.
Share Holding Pattern
ACC Ltd.
2008
Non
Institutional
21%
Promoter and
Promoter Group 46%
Institutional 33%
2009
Non
Institutional
22%
Promoter and
Promoter Group 46%
Institutional 32%
2010
Non
Institutional
20%
Promoter and
Promoter Group 48%
Institutional
32%
2009
Non
Institutional 24%
Promoter
and Promoter Group 55%
Institutional
21%
Non
2010
Institutional 14%
Institutional
21%
Promoter and
Promoter Group 65%
Non 2011
Institutional
12%
Institutional
23%
Promoter and
Promoter Group 65%
Ratio Analysis
-A general technique for analyzing a business’s performance or its potential performance
is known as Ratio Analysis
-Ratio Analysis involves calculating ratios for a business or proposed business and
comparing them to ratios of other businesses within the same industry.
-An Investor is interested in information regarding the exact financial position of the
business, its earning capacity, the present position with regards to possibility.
-The published accounts contain the P&L A/c, Balance sheet, Directors report, Auditor’s
report and Chairman’s speech.
-The ratio is one number expressed in term of another. Ratio is customarily expressed in
three different ways – Simple figures, percentage form and in proportions.
Liquidity Ratios
Current Ratio
It is the ratio that measures whether a firm has enough resources to pay its debts over the
next 12 months. It compares a firm's current assets to its current liabilities. Ideally it should be
2:1.
Current Assets
Current Ratio =
Current Liabilities
Current Ratio UltraTech ACC

2008-09 / 2008 1.09 1.00
2009-10 / 2009 1.13 0.72
2010-11 / 2010 1.09 0.73
Analysis
The current ratio of 1 or above is healthy for the company. It shows the company’s strength to
pay back its short term liabilities. The figures of ACC do not give a good indication for 2009 and
2010. It is below 1, which means the company is weak in paying back short term debt.
While in case of UltraTech it is above 1 in all the years and also there is not much of change. It
means that the company’s strength to pay back short term liabilities is constant.
Taking recent years into account UltraTech is much stronger than ACC when it comes to pay
back short term liabilities.
Quick Ratio (Acid - Test Ratio)
The Acid-test or quick ratio or liquid ratio measures the ability of a company to use its
near cash or quick assets to extinguish or retire its current liabilities immediately. Quick assets
include those current assets that presumably can be quickly converted to cash at close to their
book values. Ideally it should be 0.5.
(Current Assets – Inventory)

Quick Ratio =
Current Liabilities
Quick Ratio UltraTech ACC

2008-09 / 2008 0.54 0.71
2009-10 / 2009 0.50 0.47
2010-11 / 2010 0.52 0.49
Analysis
The quick ratio of ACC is highly fluctuating in the recent time which should be a matter of
concern for the company. 2008 had a strong ratio 2009 and 2010 had weaker figures.
UltraTech has good figures in terms of quick ratio. It has been able to maintain its ratio. The
company’s dependency on inventory as short term asset is high. The inventory rose drastically in
the three years. The inventory has increased from 821.7 to 1956.
Both the companies saw a decline in 2009 and 2010 but they recovered in 2011. 2009 was a
difficult year for the cement industry. Costs raised and demand was stagnant or rather declining.
Leverage Ratios
Debt - Equity Ratio
The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion of
shareholders' equity and debt used to finance a company's assets closely related to leveraging, the
ratio is also known as Risk, Gearing or Leverage.
Total Debt
Debt-Equity Ratio =
Net Wroth
Debt-Equity Ratio UltraTech ACC

2008-09 / 2008 0.59 0.10
2009-10 / 2009 0.35 0.09
2010-11 / 2010 0.39 0.08
Analysis
ACC largely depends on shareholders’ fund. Very small part of the capital is allotted to debt. It is
good in a way as the company will not have to maintain the balance of short term assets.
UltraTech had a very stable ratio in 2008-09 but after that the company has reduced its
dependency on debts and increased the use of equity capital.
Both the companies seem to have been facing similar situations and it can be seen that both the
company have started depending on their own money.
Capital Employed to Net worth Ratio
There is another alternative way of expressing the basic relationship between debt and
equity. It helps in knowing, how much funds are being contributed together by lenders and
owners for each rupee of owner's contribution.
Capital Employed
CE to NW Ratio = Net Worth Excluding Pref. Share Capital
CE to NW Ratio UltraTech ACC

2008-09 / 2008 1.80 1.17
2009-10 / 2009 1.53 1.15
2010-11 / 2010 1.55 1.14
Analysis
Fixed Interest Coverage Ratio
A ratio that indicates a firm's ability to satisfy fixed financing expenses, such as interest
and leases.
EBIT
Fixed Interest Coverage Ratio =
Interest
Fixed Interest Coverage Ratio UltraTech ACC

2008-09 / 2008 11.80 40.16
2009-10 / 2009 14.46 27.31
2010-11 / 2010 7.45 25.00
Analysis
The amount that ACC pays in terms of interest is very low indicating that the company has a
strong position in paying off long term loans. From 2008 there is massive reduction in use of
loan and company increased the use of its own money.
UltraTech has more long term obligations. It is evident from the figures. Its expansion and
amalgamation have led it to borrow huge amount of money from the market. Though, the
company’s condition is stable.
The situations of both the companies are very different. While ACC has miniscule dependency
on loans UltraTech has huge borrowings and thus has a huge liability. ACC here has a stronger
position than UltraTech.
Profitability Ratios
Net Profit Ratio
It shows the ratio of Net Profit (after Tax) to Sales. This Ratio is expressed in Percentage
Form.
PAT
Net Profit Ratio =
Net Sales X 100
Net Profit Ratio UltraTech ACC

2008-09 / 2008 15.31 16.66
2009-10 / 2009 15.50 20.02
2010-11 / 2010 10.63 14.51
Analysis
For ACC, while in 2009 20% of the sales were converted to profit, in 2010 it came down to
14.5%. These figures are moderate.
The figures of UltraTech shows that majority of the sales have failed to convert into profit. It is
evident that there are higher expenses taking place.
ACC holds a stronger position in converting sales into profit. UltraTech maybe facing the
problem as the company is comparatively new than ACC.
Operating Profit Ratio
Operating Profit Ratio is generally calculated for the industries or companies which has
high operating expenses.
(PBIT – Other Income)

Operating Profit Ratio =
Net Sales
Operating Profit Ratio UltraTech ACC

2008-09 / 2008 0.22 0.18
2009-10 / 2009 0.22 0.26
2010-11 / 2010 0.13 0.14
Operating Ratio
This ratio is a test of the efficiency of the management in their business operation. It is a
means of operating efficiency. In normal conditions, the operating ratio should be low enough so
as to leave portion of the sales sufficient to give a fair return to the investors.
Operating Ratio = 1 – Operating Profit Ratio
Operating Ratio UltraTech ACC

2008-09 / 2008 0.78 0.82
2009-10 / 2009 0.78 0.74
2010-11 / 2010 0.87 0.86
Expenses Ratio
Expense ratios indicate the relationship of various expenses to net sales. In this case Total
expenses of both the companies are compared with its sales. The lower the operating ratio, the
larger is the profitability and higher the operating ratio, lower is the profitability.
Total Expenses
Expenses Ratio =
Net Sales X 100
Expenses Ratio UltraTech ACC

2008-09 / 2008 81.82 80.79
2009-10 / 2009 79.22 74.41
2010-11 / 2010 89.20 85.69
Return on Shareholders’ Funds OR Return on NW
It is the ratio of net profit to shareholder’s investment. It is the relationship between net
profit (after interest and tax) and shareholder’s/proprietor's fund. This ratio establishes the
profitability from the share holders' point of view. The ratio is generally calculated in percentage.
PAT
Return on Shareholders’ Funds OR Return on NW = X 100
Share Holders’ Fund
Return on Shareholders’ Funds OR Return on NW UltraTech ACC

2008-09 / 2008 27.12 24.61
2009-10 / 2009 23.71 26.71
2010-11 / 2010 13.16 17.31
Analysis
ACC’s ratio of 17.31 should be considered as moderate and has declined in the last year.
UltraTech’s ratio of 13.16 is quite lower. It shows that the company’s profit after tax is much
less.
Both the companies are going through similar phase. Ratios of both the companies have
decreased.
Return on Total Assets
It is a ratio that measures a company's earnings against its total net assets. The ratio is
considered an indicator of how effectively a company is using its assets to generate earnings
before contractual obligations must be paid.
PAT
Return on Total Assets = (Fixed Assets + Investment + Current Assets) X 100
Return on Total Assets UltraTech ACC

2008-09 / 2008 12.66 14.25
2009-10 / 2009 13.10 16.00
2010-11 / 2010 7.02 10.09
Return on Capital Employed (ROCE)
It is a ratio that indicates the efficiency and profitability of a company's capital
investments.
PAT
Return on Capital Employed (ROCE) = Total Capital Employed X 100
Return on Capital Employed (ROCE) UltraTech ACC

2008-09 / 2008 15.11 21.11
2009-10 / 2009 15.52 23.18
2010-11 / 2010 8.49 15.23
Analysis
ACC’s ROCE were quite good in 2008 and 2009. It declined in 2010 to 15.23.
UltraTech’s ROCE is much lower as compared to ACC.
Again both the companies are declining in terms of ROCE. This show that both the companies
have earned less in comparison with the amount of capital employed.
Turnover Ratios
Inventory Turnover Ratio
A ratio showing how many times a company's inventory is sold and replaced over a
period.
COGS
Inventory Turnover Ratio =
Average Inventory
Inventory Turnover Ratio UltraTech ACC

2008-09 / 2008 5.70 7.67
2009-10 / 2009 5.02 7.62
2010-11 / 2010 5.08 7.65
Analysis
It shows that ACC sold its inventory more than 7 times in a year.
UltraTech managed to sell its inventory just above 5.08 times.
ACC holds a stronger position in terms of selling the whole inventory.

Fixed Assests Turnover Ratio
Fixed-asset turnover is the ratio of sales (on the profit and loss account) to the value of
fixed assets (on the balance sheet). It indicates how well the business is using its fixed assets to
generate sales. The higher the ratio, the better it is.
Net Sales
Fixed Assets Turnover Ratio =
Net Fixed Assets
Fixed Assets Turnover Ratio UltraTech ACC

2008-09 / 2008 1.20 1.44
2009-10 / 2009 1.36 1.27
2010-11 / 2010 1.06 1.16
Analysis
The declining figure of ACC shows that the company has been inefficient in investing into fixed
Assests which can be turned into sales. They depend very minutely on fixed assets.
UltraTech’s expansion and amalgamations has made the ratio unstable.
Both the companies have similar figures which show that they don’t depend much on fixed
assets to convert into net sales.
Working Capital Turnover Ratio
Working capital turnover ratio establishes relationship between cost of sales and net
working capital. As working capital has direct and close relationship with cost of goods sold,
therefore, the ratio provides useful idea of how efficiently or actively working capital is being
used.
Net Sales
Working Capital Turnover Ratio =
Net Working Capital
Working Capital Turnover Ratio UltraTech ACC

-
2008-09 / 2008 53.64 1213.83
2009-10 / 2009 40.75 -9.36
2010-11 / 2010 43.31 -7.77
Total Assets Turnover Ratio
This ratio is ascertained by dividing the net sales by the value of total assets.
Net Sales
Total Assets Turnover Ratio = Total Assets (FA + CA + Investments)
Total Assets Turnover Ratio UltraTech ACC

2008-09 / 2008 0.83 0.86
2009-10 / 2009 0.85 0.80
2010-11 / 2010 0.66 0.70
Analysis
The ratios of ACC are quite high which shows that the company is less dependent on total assets
to turn in to sales.
UltraTech’ ratios are also quite high.
It shows that these companies don’t depend on total assets much to make sales.
Net Worth Turnover Ratio
This ratio indicates the overall financial and operational efficiency of the company. It is
an indication about the optimum capital structure and production efficiencies of the company.
Net Sales
Net Worth Turnover Ratio = NW excl. Pref. Capital
Net Worth Turnover Ratio UltraTech ACC

2008-09 / 2008 1.77 1.48
2009-10 / 2009 1.53 1.33
2010-11 / 2010 1.24 1.19
Debtors Turnover Ratio
The ratio measures the net credit sales of a firm to the recorded trade debtors thereby
indicating the rate at which cash is generated by turnover of receivables or debtors.
Net Sales
Debtors Turnover Ratio = (Debtors + Bills Receivables)
Debtors Turnover Ratio UltraTech ACC

2008-09 / 2008 32.91 23.48
2009-10 / 2009 32.66 39.41
2010-11 / 2010 21.93 43.29
Analysis
The ratios of ACC are quite high which is not advisable. Above 43% of the sales made by the
company are on credit which means that the company may face shortage of cash.
Ratios of UltraTech are reducing quite significantly which means the company does not have
much to worry about credit receipts.
ACC here is at a higher risk as the amount of debtors and bills receivables are very high.
Valuation Ratios
Dividend Yield Ratio
This ratio establishes the relation between the market price and the dividend per share.
DPS
Dividend Yield Ratio =
Average MPS
Dividend Yield Ratio UltraTech ACC

2008-09 / 2008 0.01 0.03
2009-10 / 2009 0.01 0.03
2010-11 / 2010 0.01 0.03
Analysis
ACC has been paying dividend which is equal to 3% of its market price for the last three years.
UltraTech has been paying dividend which is equal to 1% of its market price for the last three years.
Although the market price of UltraTech is higher than ACC, the return of ACC is much higher which
makes ACC the better choice to invest in.
Dividend Payout Ratio
This ratio expresses the relationship between what is available as earnings per share and what is
actually paid in the form of dividends out of available earnings.
DPS
Dividend Payout Ratio =
EPS
Dividend Payout Ratio UltraTech ACC

2008-09 / 2008 0.06 0.31
2009-10 / 2009 0.07 0.27
2010-11 / 2010 0.10 0.51
Analysis
The dividend payout ratio of ACC is quite high. It has been paying out 31% to 51% dividend to
shareholders. This means that investors get a good return on their investment.
UltraTech’s ratio are minute compared to ACC. It also shows that ACC is a mature company as
compared to UltraTech. UltraTech being a newer company may not payout as much as ACC.
Price Earnings Ratio
A valuation ratio of a company's current share price compared to its per-share earnings.
Average MPS
Price-Earnings Ratio =
EPS
Price-Earnings Ratio UltraTech ACC

2008-09 / 2008 6.96 10.98
2009-10 / 2009 9.61 8.16
2010-11 / 2010 15.90 15.37
Earnings per Share
This ratio measures the profit available to the equity shareholders on a per share basis.
PAT
EPS = No. of (Interim Equity Dividend + Final Equity
Dividend)
EPS UltraTech ACC

2008-09 / 2008 78.48 64.63
2009-10 / 2009 87.80 85.60
2010-11 / 2010 51.23 59.66
Dividend per Share
This ratio shows the dividend divided among equity shareholders.
(Interim Equity Dividend + Final Equity Dividend)

DPS =
No. of Equity Shares
DPS UltraTech ACC

2008-09 / 2008 5.00 20.00
2009-10 / 2009 6.00 23.00
2010-11 / 2010 6.00 30.50
Common size Statement

Balance Sheet of UltraTech Ltd
Rs. (In Crore)
March March March
'09 % '10 % '11 %
Share Capital 124.49 124.49 274.04
Employees Stock Options Outstanding 1.68 1.99 4.78
Reserves and Surplus 3,475.93 4,482.17 10,387.22
Shareholders’ Funds 3,602.10 55.70 4,608.65 65.43 10,666.04 64.48
Secured Loans 1,175.80 854.19 2,789.76
Unsecured Loans 965.83 750.33 1,354.84
Loan Funds 2,141.63 33.12 1,604.52 22.78 4,144.60 25.06
Deferred Tax Liabilities (Net) 722.93 11.18 830.73 11.79 1,730.05 10.46
Total Liabilities 6,466.66 100.00 7,043.90 100.00 16,540.69 100.00
Gross Block 7,401.02 8,078.14 17,942.27

Less: Depreciation 2,765.33 3,136.46 6,542.02
Net Block 4,635.69 4,941.68 11,400.25
Capital Work-in-Progress 677.28 259.37 1,105.32
Fixed Assets 5,312.97 82.16 5,201.05 73.84 12,505.57 75.60
Investments 1,034.80 16.00 1,669.55 23.70 3,730.32 22.55
Inventories 691.97 821.70 1,956.52
Sundry Debtors 193.94 215.83 602.29
Cash and Bank Balances 104.49 83.73 144.79
Loans and Advances 381.56 351.13 1,053.88
Assets held for Disposal 0.00 0.00 1.22
Current Assets, Loans and Advances 1,371.96 1,472.39 3,758.70
Current Liabilities 1,120.92 1,138.08 2,880.41
Provisions 132.15 161.01 573.49
Less: Current Liabilities and Provisions 1,253.07 1,299.09 3,453.90
Net Current Assets 118.89 1.84 173.30 2.46 304.80 1.84
Total Assets 6,466.66 100.00 7,043.90 100.00 16,540.69 100.00
P&L A/C of UltraTech Ltd
Rs. (In Crore)
March March March
'09 '10 '11
Income 6577.68 7169.43 13558.42
Gross Sales 7,160.42 7,729.13 14,858.60
Less: Excise Duty 777.34 679.45 1,648.69
Net Sales 6383.08 7049.68 13209.91
Interest and Dividend Income 45.15 56.21 122.34
Other Income 60.69 65.81 164.33
Increase / (Decrease) in Stocks 88.76 -2.27 61.84
Expenditure 5216.22 5581.27 11772.23
Raw Materials Consumed 684.96 960.61 1,805.33
Manufacturing Expenses 2,420.17 2,148.87 4,547.98
Purchase of Finished Products 19.5 63.74 122.18
Payments to and Provisions for Employees 217.67 252.94 666.5
Selling, Distribution, Administration and Other Expenses 1,433.79 1,653.53 3,597.91
Interest and Finance Charges 125.51 117.52 277.11
Depreciation and Obsolescence 323 388.08 765.73
Less: Captive Consumption of Cement -8.38 -4.02 -10.51
Profit Before Tax Expenses 1361.46 1588.16 1786.19
Income Tax Expenses
Provision for Current Tax 197.54 387.25 510.72
Excess tax provision reversal related to earlier years 0 -0.13 -125.52
Deferred Tax (Credit) / Charge 180.58 107.8 -3.24
Provision for Fringe Benefit Tax 6.32 0 0
Profit After Tax 977.02 1093.24 1404.23
Balance brought forward from Previous Year 1,598.12 2,438.40 2,729.37
Profit Available for Appropriation 2575.14 3531.64 4133.6
Appropriations 2575.14 3531.64 4133.6
Proposed Dividend 62.24 74.69 164.42
Corporate Dividend Tax 10.58 12.41 26.67
Debenture Redemption Reserve -36.08 -34.83 58.92
General Reserve 100 750 1,100.00
Balance carried to Balance Sheet 2,438.40 2,729.37 2,783.59
Basic Earnings Per Equity Share 78.48 87.82 62.74
Diluted Earnings Per Equity Share 78.48 87.79 62.72
ACC Cements Ltd.
Balance Sheet of ACC Ltd
Rs. (In Crore)
Dec '08 % Dec '09 % Dec '10 %
Share Capital 187.88 187.94 187.95
Share Application money, pending
allotment 0.00 0.08 0.00
Shareholders' Fund 4,927.73 85.77 6,016.22 86.78 6,469.49 87.96
Secured Loans 450.00 550.00 509.93
Unsecured Loans 32.03 16.92 13.89
Loan Funds 482.03 8.39 566.92 8.18 523.82 7.12
Deferred Tax Liabilities (Net) 335.79 5.84 349.25 5.04 361.53 4.92
Total Funds 5,745.55 100.00 6,932.39 100.00 7,354.84 100.00
Gross Block 5,835.67 6,826.27 8,076.95

Less: Accumulated Depreciation and
Amortization 2,365.97 2,667.98 2,994.51
Net Block 3,469.70 4,158.29 5,082.44
Capital Work-in-Progress (including
Capital Advances) 1,602.86 2,156.21 1,562.80
Fixed Assets 5,072.56 88.29 6,314.50 91.09 6,645.24 90.35
Investments 679.08 11.82 1,475.64 21.29 1,702.67 23.15
Inventories 793.27 778.98 914.98
Sundry Debtors 310.17 203.70 178.28
Cash and Bank Balances 984.24 746.38 1,080.03
Other Current Assets 20.67 10.99 56.12
Loans and Advances 651.28 516.11 523.94
Current Assets 2,759.63 2,256.16 2,753.35
Provisions 963.93 1,150.00 1,652.46
Net Current Assets -6.09 -0.11 -857.75 -12.37 -993.07 -13.50
Total Assets (Net) 5,745.55 100.00 6,932.39 100.00 7,354.84 100.00
P&L A/C of ACC Ltd
Rs. (In Crore)
Dec '08 Dec '09 Dec '10
Income 7,571.58 8,267.62 8,074.26
Sale of Products and Services (Gross) 8,234.02 8,724.24 8,563.71
Less - Excise Duty 951.15 697.04 846.38
Sale of Products and Services (Net) 7,282.87 8,027.20 7,717.33
Other Income 288.71 240.42 356.93
Expenditure 5,883.84 5,973.23 6,612.81
Manufacturing and other expenses 5,549.70 5,546.84 6,163.35
Depreciation and Amortisation 294.18 342.09 392.68
Interest expenses 39.96 84.3 56.78
Exceptional Items 48.86 0 0
Profit before Tax 1,736.60 2,294.39 1,461.45
Provision for Tax: -523.81 -687.66 -341.44
Current Tax -510.47 -673.3 -411.16
Tax adjustment of an earlier year 0 0 82
Deferred Tax Charge -4.34 -13.46 -12.28
Fringe Benefit Tax -9 -0.9 0
Profit after Tax 1,212.79 1,606.73 1,120.01
Profit available for appropriation 3,277.68 4,084.64 4,323.86
Appropriations: 799.77 880.79 942.45
Interim Dividend 187.65 187.7 187.75
Dividend Distribution Tax 63.79 73.38 95.1
Previous Year Dividend Distribution Tax 0.02 0 -0.93
General Reserve 350 350 250
Debenture Redemption Reserve 10 25 25
Amortisation Reserve 0.63 0.65 0.65
Surplus carried to Balance Sheet 2,477.91 3,203.85 3,381.41
Earnings per Share (Basic) 64.63 85.6 59.66
Diluted 64.53 85.42 59.52
Awards and Achievements
ACC Ltd.
National Award for Excellence in Water Management by Confederation of Indian Industry (CII)
Outstanding Corporate Vision, Triple Impact - Business Performance Social & Environmental
Action and Globalization for 2009-10 from Federation of Indian Chambers of Commerce and
Industry
Asia Pacific Entrepreneurship Award in two categories, Green Leadership and Community
Engagement by Enterprise Asia.
Indira Priyadarshini Vrikshamitra Award --- by The Ministry of Environment and Forests for
"extraordinary work" carried out in the area of afforestation.
Subh Karan Sarawagi Environment Award by The Federation of Indian Mineral Industries for
environment protection measures.
Drona Trophy - By Indian Bureau Of Mines for extra ordinary efforts in protection of
Environment and mineral conservation in the large mechanized mines sector.
Indira Gandhi Memorial National Award - for excellent performance in prevention of pollution
and ecological development
Excellence in Management of Health, Safety and Environment: Certificate of Merit by Indian
Chemical Manufacturers Association
Good Corporate Citizen Award - by PHD Chamber of Commerce and Industry
FIMI National Award for valuable contribution in Mining activities from the Federation of
Indian Mineral Industry under the Ministry of Coal.
Rajya Sthariya Paryavaran Puraskar for outstanding work in Environmental Protection and
Environment Performance by the Madhya Pradesh Pollution. Control Board.
National Award for Fly Ash Utilization - by Ministry of Power, Ministry of Environment &
Forests and Dept of Science & Technology, Govt of India - for manufacture of Portland
Pozzolana Cement.
Year Award
2010-2011 Subh Karan Sarawagi Environment Award
2010-2011 Business World FICCI-SEDF CSR Award
2010 Greentech Environment Excellence Gold Award
2010 IMC Ramkrishna Bajaj National Quality Award
2010 Asian CSR Award
2009-2010 National Awards for Prevention of Pollution
2009-2010 Rajiv Gandhi Environment Award for Clean Technology
2009-2010 State Level Environment Award (Plant)
2009 9th Greentech Safety Award
2009 12th F.L. Smith Award for Maximum Percentage Reduction in Electrical Energy
Consumption of Clinker
2009 12th F.L. Smith Award for Maximum Percentage Reduction in Electrical Energy
Consumption of Cement
2009 12th F.L. Smith Award for Lowest Electrical Energy Consumption in Clinker
without VRM
2009 12th F.L. Smith Award for Lowest Electrical Energy Consumption in Cement
without VRM
2009 Bhamashah Award from Commercial Tax Department, Ujjain
2008-2009 State Level Environment Award (Mines)
2008-2009 National Awards for Electrical Energy Performance

2008-2009 National Awards for Energy Performance in Manufacture of Blended Cement
2008-2009 FIMI CSR Social Awareness Award
2008 8th TERI Corporate Award for CSR
2008 Bhamashah Award from Commercial Tax Department, Ujjain
2008 11th F.L. Smith Award for Energy Conservation for Lowest Electrical Energy
Consumption in Clinker without VRM
2008 11th F.L. Smith Award for Energy Conservation for Lowest Electrical Energy
Consumption in Cement without VRM
2008 11th F.L. Smith Award for Energy Conservation for Maximum Percentage
Reduction in Electrical Energy Consumption of Cement
2008 11th F.L. Smith Award for Energy Conservation for Maximum Percentage
Reduction in Electrical Energy Consumption of Clinker
2008 Golden Peacock National Quality Award
2008 ICWAI National Award for Excellence in Cost Management
2007-2008 National Awards for Electrical Energy Performance
2007-2008 National Awards for Energy Performance in Manufacture of Blended Cement
2007 Chairman's WCM Silver Award
2005-2006 National Awards for Energy Efficiency

2005 8th F.L. Smith Award for Energy Consumption for Maximum Percentage
Reduction in Electrical Energy Consumption Category-III per ton of Cement Production
2005 8th F.L. Smith Award for Energy Consumption for Maximum Percentage
Reduction in Electrical Energy Consumption Category-II per ton of Clinker Production
2005 National Award for Thermal Energy Excellence, Electrical Energy Excellence
and Environment Excellence
2004 7th F.L. Smith Award for Energy Consumption
2003 M.P. State Level Environment Award
2002 Manufacturing Excellence & Competitive Advantage Award
2001-2002 Fuller Energy Award for Maximum Percentage Reduction in Thermal Energy
Consumption in K.cal/Kg of Cement Produced
2001-2002 Fuller Energy Award for Maximum Percentage Reduction in Thermal Energy
Consumption in K.cal/Kg of Clinker Produced
2001-2002 National Awards for Quality Excellence
2001-2002 Indo-German Greentech Industrial Safety Award
2001 British Safety Council Award
2001 Award for Excellence in Consistent TPM Commitment
2000-2001 Indo-German Greentech Environment Excellence Award
2000 National Energy Conservation Award
1999-2000 Fuller Energy Award
1999-2000 Bharat Shell Excellence Award
1999-2000 Energy Efficiency Award (Second Best in Electrical Energy Performance)

1999-2000 Energy Efficiency Award (Second Best in Thermal Energy Performance)
1998-1999 Energy Efficiency Award (Second Best in Thermal Energy Performance)
1998-1999 Fuller Energy Award MP Chapters for maximum percentage reduction in

electrical energy consumption
1998-1999 Fuller Energy Award MP Chapters for maximum percentage reduction in thermal
energy consumption
1998 AV Birla Award for Outstanding Achievement in Community Development
1998 Golden Peacock National Training Award
1998 British Council Safety Award
1997 National Safety Award from Government of India
1997 Rajiv Gandhi National Quality Award
1996 AV Birla Award for Outstanding Achievement
1996 British Safety Council Award for Vikram, New Vikram and Vikram Super
Cemen
t
1995 British Safety Council Award for Vikram, New Vikram and Vikram Super
Cemen
t
1995 TPM Excellence Award from Japan Institute of Plant Maintenance

1994-1996 Safety Awards from National Safety Council - MP Chapter
1994-1995 Productivity Awards (Best performance in productivity)
1992-1993 Productivity Awards (Best performance in productivity)
1988-1989 Productivity Award (Second best)

Conclusion
ACC Ltd, being established in 1936 is one of the oldest cement companies of India while
UltraTech Cement Ltd is a much newer company established in 1983. Today both the companies
are trading at a very close price in the stock markets but after analyzing both the companies
financially there are some major difference between the companies which should be brought to
notice before investing in either of the companies.
ACC Ltd is a very mature company which has been set up since long and at a developed
stage while UltraTech Cement Ltd although being a major manufacturer of cement in India is
looking forward to expand even more and is trying to grow even further.
The major motives behind the companies are different and that is what makes them
different. Those investors which are looking forward to earn dividend right away may opt for
ACC Ltd as it is observed that its dividend payout ratio is very high. ACC Ltd gives the profit
away to the shareholders. On the other hand UltraTech Cement Ltd is acquiring more and more
factories and expanding. This may not let the company payout high dividends but the value of
the share will gradually increase and it could also become even a bigger company in future
which may payout very high dividends.
In a nutshell, ACC Ltd may deliver higher returns right now but UltraTech Cement Ltd
has a scope of even higher returns in the future.
Annexure
Balance Sheet of ACC Ltd
Rs. (In Crore)
Dec '08 Dec '09 Dec '10
Share Capital 187.88 187.94 187.95
Share Application money, pending allotment 0.00 0.08 0.00
Shareholders' Fund 4,927.73 6,016.22 6,469.49
Secured Loans 450.00 550.00 509.93
Unsecured Loans 32.03 16.92 13.89
Loan Funds 482.03 566.92 523.82
Deferred Tax Liabilities (Net) 335.79 349.25 361.53
Total Funds 5,745.55 6,932.39 7,354.84
Gross Block 5,835.67 6,826.27 8,076.95

Less: Accumulated Depreciation and Amortisation 2,365.97 2,667.98 2,994.51
Net Block 3,469.70 4,158.29 5,082.44
Capital Work-in-Progress (including Capital Advances) 1,602.86 2,156.21 1,562.80
Fixed Assets 5,072.56 6,314.50 6,645.24
Investments 679.08 1,475.64 1,702.67
Inventories 793.27 778.98 914.98
Sundry Debtors 310.17 203.70 178.28
Cash and Bank Balances 984.24 746.38 1,080.03
Other Current Assets 20.67 10.99 56.12
Loans and Advances 651.28 516.11 523.94
Current Assets 2,759.63 2,256.16 2,753.35
Provisions 963.93 1,150.00 1,652.46
Net Current Assets -6.09 -857.75 -993.07
Total Assets (Net) 5,745.55 6,932.39 7,354.84
Balance Sheet of UltraTech Ltd
Rs. (In Crore)
March March March
'09 '10 '11
Share Capital 124.49 124.49 274.04
Employees Stock Options Outstanding 1.68 1.99 4.78
Shareholders’ Funds 3,602.10 4,608.65 10,666.04
Secured Loans 1,175.80 854.19 2,789.76
Unsecured Loans 965.83 750.33 1,354.84
Loan Funds 2,141.63 1,604.52 4,144.60
Deferred Tax Liabilities (Net) 722.93 830.73 1,730.05
Total Liabilities 6,466.66 7,043.90 16,540.69
Gross Block 7,401.02 8,078.14 17,942.27

Less: Depreciation 2,765.33 3,136.46 6,542.02
Net Block 4,635.69 4,941.68 11,400.25
Capital Work-in-Progress 677.28 259.37 1,105.32
Fixed Assets 5,312.97 5,201.05 12,505.57
Investments 1,034.80 1,669.55 3,730.32
Inventories 691.97 821.70 1,956.52
Sundry Debtors 193.94 215.83 602.29
Cash and Bank Balances 104.49 83.73 144.79
Loans and Advances 381.56 351.13 1,053.88
Assets held for Disposal 0.00 0.00 1.22
Current Assets, Loans and Advances 1,371.96 1,472.39 3,758.70
Provisions 132.15 161.01 573.49
Net Current Assets 118.89 173.30 304.80
Total Assets 6,466.66 7,043.90 16,540.69
P&L A/C of UltraTech Ltd
Rs. (In Crore)
March March March
'09 '10 '11
Income 6577.68 7169.43 13558.42
Gross Sales 7,160.42 7,729.13 14,858.60
Less: Excise Duty 777.34 679.45 1,648.69
Net Sales 6383.08 7049.68 13209.91
Interest and Dividend Income 45.15 56.21 122.34
Other Income 60.69 65.81 164.33
Increase / (Decrease) in Stocks 88.76 -2.27 61.84
Expenditure 5216.22 5581.27 11772.23
Raw Materials Consumed 684.96 960.61 1,805.33
Manufacturing Expenses 2,420.17 2,148.87 4,547.98
Purchase of Finished Products 19.5 63.74 122.18
Payments to and Provisions for Employees 217.67 252.94 666.5
Selling, Distribution, Administration and Other Expenses 1,433.79 1,653.53 3,597.91
Interest and Finance Charges 125.51 117.52 277.11
Depreciation and Obsolescence 323 388.08 765.73
Less: Captive Consumption of Cement -8.38 -4.02 -10.51
Profit Before Tax Expenses 1361.46 1588.16 1786.19
Income Tax Expenses
Provision for Current Tax 197.54 387.25 510.72
Excess tax provision reversal related to earlier years 0 -0.13 -125.52
Deferred Tax (Credit) / Charge 180.58 107.8 -3.24
Provision for Fringe Benefit Tax 6.32 0 0
Profit After Tax 977.02 1093.24 1404.23
Profit Available for Appropriation 2575.14 3531.64 4133.6
Appropriations 2575.14 3531.64 4133.6
Corporate Dividend Tax 10.58 12.41 26.67
Debenture Redemption Reserve -36.08 -34.83 58.92
General Reserve 100 750 1,100.00
Balance carried to Balance Sheet 2,438.40 2,729.37 2,783.59
Basic Earnings Per Equity Share 78.48 87.82 62.74
Diluted Earnings Per Equity Share 78.48 87.79 62.72
P&L A/C of ACC Ltd

Rs. (In Crore)
Dec '08 Dec '09 Dec '10
Income 7,571.58 8,267.62 8,074.26
Sale of Products and Services (Gross) 8,234.02 8,724.24 8,563.71
Less - Excise Duty 951.15 697.04 846.38
Sale of Products and Services (Net) 7,282.87 8,027.20 7,717.33
Other Income 288.71 240.42 356.93
Expenditure 5,883.84 5,973.23 6,612.81
Manufacturing and other expenses 5,549.70 5,546.84 6,163.35
Depreciation and Amortisation 294.18 342.09 392.68
Interest expenses 39.96 84.3 56.78
Exceptional Items 48.86 0 0
Profit before Tax 1,736.60 2,294.39 1,461.45
Provision for Tax: -523.81 -687.66 -341.44
Current Tax -510.47 -673.3 -411.16
Tax adjustment of an earlier year 0 0 82
Deferred Tax Charge -4.34 -13.46 -12.28
Fringe Benefit Tax -9 -0.9 0
Profit after Tax 1,212.79 1,606.73 1,120.01
Profit available for appropriation 3,277.68 4,084.64 4,323.86
Appropriations: 799.77 880.79 942.45
Interim Dividend 187.65 187.7 187.75
Dividend Distribution Tax 63.79 73.38 95.1
Previous Year Dividend Distribution Tax 0.02 0 -0.93
General Reserve 350 350 250
Debenture Redemption Reserve 10 25 25
Amortisation Reserve 0.63 0.65 0.65
Surplus carried to Balance Sheet 2,477.91 3,203.85 3,381.41
Earnings per Share (Basic) 64.63 85.6 59.66
Diluted 64.53 85.42 59.52

Financial Report Analysis of Ultratech Cements LTD and ACC Cements LTD

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Financial Report Analysis of Ultratech Cements LTD and ACC Cements LTD

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Table of Contents

Industry Analysis and Trend............................................................................................................4

Introduction to the companies..........................................................................................................7

UltraTech Cements Ltd..............................................................................................................10

B) Profit before depreciation, interest and tax...........................................................................13

C) Profit before depreciation and tax.........................................................................................14

D) Profit after tax.......................................................................................................................15

E) Dividend per Share................................................................................................................16

F) Earnings per share (Basic).....................................................................................................17

G) Book Value per Share...........................................................................................................18

UltraTech Cements Ltd..............................................................................................................28

Capital Structure Analysis.............................................................................................................38

UltraTech Cements Ltd..............................................................................................................42

Share Holding Pattern....................................................................................................................45

UltraTech Cements Ltd..............................................................................................................49

Quick Ratio (Acid - Test Ratio).............................................................................................56

Debt - Equity Ratio................................................................................................................58

Capital Employed to Net worth Ratio....................................................................................59

Fixed Interest Coverage Ratio...............................................................................................60

Net Profit Ratio......................................................................................................................62

Operating Profit Ratio............................................................................................................63

Return on Shareholders’ Funds OR Return on NW..............................................................66

Return on Total Assets...........................................................................................................67

Return on Capital Employed (ROCE)...................................................................................68

Inventory Turnover Ratio......................................................................................................70

Fixed Assests Turnover Ratio................................................................................................71

Working Capital Turnover Ratio...........................................................................................72

Total Assets Turnover Ratio..................................................................................................73

Net Worth Turnover Ratio.....................................................................................................74

Debtors Turnover Ratio.........................................................................................................75

Dividend Yield Ratio.............................................................................................................77

Dividend Payout Ratio...........................................................................................................78

Earnings per Share.................................................................................................................80

Dividend per Share................................................................................................................81

Common size Statement................................................................................................................82

UltraTech Cements Ltd..............................................................................................................83

ACC Cements Ltd......................................................................................................................85

Awards and Achievements............................................................................................................87

UltraTech Cements Ltd..............................................................................................................90

The major players in the Indian cement industry are

Among the first companies in India to include commitment to environmental protection

6000.00 Sales of Ultrarech

1500.00 PBDT of Ultrarech

1000.00 PAT of Ultrarech

Dividend Per Share

15.00 DPS of Ultrarech

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

EPS (Basic) of Ultrarech

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Book Value per Share

Book Value per Share of Ultrarech

6000.00 Net Worth of Ultrarech

10000.00 Total Assets of Ultrarech

(iii) Accounting policies have been consistently applied by the Company.

(II) Use of estimates

The preparation of financial statements in conformity with generally accepted accounting

(III) Significant Accounting Policies

(iii) Cost of leasehold land is amortized over the period of lease.

Software cost is amortized over a period of three years.

F) Expenditure during construction period In case of new projects expenditure incurred,

J) Foreign currency transactions

(i) Defined Contribution Plan

(iii) Other employee benefit