CHAPTER I

INTRODUCTION

1
INTRODUCTION:
The first major component of the balance sheet is current assets. These assets can
easily be converted to cash within one operating cycle the amount of time the
company needs to sell a product and collect cash from that sale, often anywhere
between 60 and 180days.

Companies need current assets to fund their day to day operations. If current
assets fall short, the company will have to scramble for other sources of short-
term funding, either by asking on debt (hello , interest payments) or issuing more
stock (hello, Share holder dilution).

UltraTech Cement Limited is the largest manufacturer of cement in India and

ranks among the world‘s leading cement makers. UltraTech‘s vision is to be ‗The
Leader‘ in Building Solutions. The company has a consolidated capacity* of
102.75 million tonnes per annum (MTPA) of grey cement. UltraTech has a strong
presence in international markets such as Bangladesh, UAE, Sri Lanka and
Bahrain. UltraTech is a founding member of the Global Cement & Concrete
Association.

It operates 20 integrated units, 26 grinding units, seven bulk terminals and one
clinkerisation plant for grey cement, one integrated white cement unit, two wall
care putty plants and over 100 RMC plants. UltraTech has a dealer and retailer
network of over 80,000 partners across the country, with a market reach of more
than 80% Indian cities and towns.

Businesses:
UltraTech is India‘s largest manufacturer of grey cement, white cement and ready
mix concrete (RMC).

In the white cement segment, UltraTech goes to market under the brand name of
Birla White. It has a white cement plant with a capacity of 0.56 MTPA and two
wall care putty plants with a combined capacity of 0.8 MTPA.

2
With 100+ Ready Mix Concrete (RMC) plants in 35 cities, UltraTech is the
largest manufacturer of concrete in India. It also has a slew of speciality concretes
that meet specific needs of discerning customers.

UltraTech Building Products business is an innovation hub that offers an array of

scientifically engineered products to cater to new-age constructions. Aerated
autoclaved concrete (AAC) blocks are economical, light-weight blocks ideal for
high-rise buildings, while dry mix products include waterproofing, grouting and
plastering solutions designed for faster completion of projects.

The retail format of UltraTech Building Solutions offers a wide range of

construction products to the end customers under one roof. UltraTech has over
1600 Building Solutions stores across India which are one-stop shops for all
primary construction needs of our individual home builders.

Products:
UltraTech provides a range of products that cater to the needs of various aspects
of construction, ranging from foundation to finish, under five business verticals:

Grey Cement
White Cement
Concrete
Building Products
UltraTech Building Solutions

Sustainability:
As the largest cement producer in India, UltraTech Cement continually strives to
play a key role in finding effective and responsible ways to preserve the
environment. As a company, UltraTech is committed to its focus areas of climate
change, health and safety, energy conservation, water conservation, biodiversity
and natural resource substitution.

UltraTech Cement is fully aligned to the United Nations Sustainable Development

Goals (SDGs). It has been certified as two times ‗water positive‘ by global

3
auditing agency DNV. UltraTech Cement has a power generation capacity of 58
MW through waste heat recovery systems which is expected to reach 121 MW by
2021. More than 85% of its power consumption is met through captive thermal
power plants and waste heat recovery systems. Water conserved through
rainwater harvesting and recycling helps meet half of UltraTech‘s water
requirement in manufacturing.

Corporate Social Responsibility:

UltraTech believes in the Group‘s CSR vision ―To actively contribute to the
social and economic development of the communities in which we operate. In
doing so build a better, sustainable way of life for the weaker sections of society,
to contribute effectively towards inclusive growth and raise the country‘s human
development index‖. It is carrying this legacy forward by taking concrete steps to
co-create value for business and the society. The focus areas being healthcare,
education, sustainable livelihood, infrastructure and social reform.

UltraTech Cement has touched lives of more than 1.5 million people in the local
communities around its factories across India. It is working in 480 villages
spanning 15 states in India to provide healthcare, education, safe drinking water,
sanitation, sustainable livelihood, and income generation opportunities for
women. The company has identified 58 villages to be transformed into model
villages.

According to Alexander Wall:

―Current Assets are such assets as in the ordinary and natural course of business
move onward through the various processes of production, distribution and
payment of goods until they become cash or its equivalent by which debts may be
readily and immediately paid.‖

4
Characteristics of Current Assets:

Two Characteristics of Current assets

1. Short life span

2. Swiftly transformed into other asset forms

1. Short life span

Cash balance may be held idle for a week or two, account receivables may have
life span of 30 to 60 days and inventories may be held for 2 to 60 days. The life
span of depends upon the time required of activities of procurement, production
and sales, and collection and the degree of synchronization among them.

2. Swiftly transformed into other asset forms

Cash is used for acquiring raw materials raw materials are transformed into
finished goods, finished goods generally sold on credit are converted into
accounts receivables, accounts receivables on realization generate cash.

5
 CHAPTER II
REVIEW OF LITERATURE

6
 LITERATURE REVIEW
In this chapter an attempt has been made to present the information
about articles on current assets.
Article 1:
Article Information:
Title: ECONOMIZING ON CASH INVESTMENT IN CURRENT ASSETS
Author(s): Carole Cheatham, CPA, Ph.D.
Journal: Managerial Finance
Year: 1989
Volume: 15
Issue: 6
Page: 20 – 25
ISSN: 0307-4358
DOI: 10.1108/eb013630
Publisher: Barbaric Publications
Once a firm has acquired the necessary buildings and fixtures to begin operations,
most of its cash flows are the result of investing in and selling of current assets.
The bulk of a firm‘s cash expenditures are for the purpose of either Purchasing or
adding value to inventories. Inventories that have already been sold but have not
yet generated cash inflows are listed as accounts receivable. Excess cash that is
not currently used to finance other current assets or that is not needed to pay
immediate debt obligations is temporarily invested in marketable securities. All of
a firm‘s cash inflow from normal operations is generated from sales. Sales occur
as the eventual result of the liquidation of inventories. Consequently, except for
the infrequent events of replacing or adding to fixed assets, Cash flow
management is virtually synonymous with current asset management.

Article Type:
General review
Article URL: www.emeraldinsight.com/10.1108/eb013630.

7
Article 2:

Optimal asset Allocation and Risk Shifting in Money Management

Suleyman Basak

London Business School and CEPR

Anna Pavlova

London Business School and CEPR

Alexander Shapiro

Stern School of Business, New York University

Address Correspondence to Suleyman Basak, London Business School, Regents

Park, London NW1 4SA, UK, or e-mail:sbasak@london.edu

This article investigates fund manager‘s risk-taking incentives induced by

an increasing and convex relationship of fund flows to relative performance. In a

dynamic portfolio choice frame work, we show that the ensuing convexities in the

manager‘s objective give rise to a finite risk-shifting range over which she

gambles to finish ahead of her benchmark. Such gambling entails either an

increase or a decrease in the volatility of the manager‘s portfolio, depending on

her risk tolerance. In the latter case, the manager reduces her holdings of the risky

asset despite its positive risk premium. Our empirical analysis lends support to the

novel predictions of the model.

8
 We are grateful to Robert Mc Donald (the editor) and two anonymous

referees for valuable suggestions. We would also like to thank colleagues at MIT

Sloan, NYU Stern, and LBS, and especially Denis Gromb, Roberto Rigobon, and

Antoinette Schoar, as well as Joe Chen, Glenn Ellison, Mike Gallmeyer, David

Musto, Brad Paye, Ludovic Phalippou, Paola Sapienza, Kari Sigurdsso, Lucie

Tepla, Peter Tufano, Dimitri Vayanos, and the seminar participants at Bank

Gutmann, Bank of England, BI, Bilkent, Copenhagen, Harvard, HEC, LBS, LSE,

MIT, NHH, NYU, Northwestern, Rutgers, UCD,UCLA, UNC,USI Lugano,

Washington st. Louis, Yale, ASAP Conference, European Finance Association,

and Econometric Society winter meetings for their comments. Special thanks to

Martijin Cremers. We also thank Pavitra Kumar, Dmitry Makarov, Juha Valkama,

and Jialan Wang Who provided excellent research assistance. Parts of this work

are drawn from the paper that was previously circulated under the title ―Offsetting

the Incentives: Risk Shifting and Benefits of Benchmarking in Money

Management‖ (2005, CEPR DP 5006). Research support from the Q Group is

gratefully acknowledged.

9
Article 3:

International Evidence on Cash Holdings and Expected Managerial Agency

Problems

Ivalina Kalcheva

David Eccles School of Business, university of Utah and Eller College of

Management, University of Arizona

Karl V. Lins
David Eccles School of Business, University of Utah

Address correspondence to Karl V. Lins, David Eccles School of Business,

University of Utah., or e-mail: finkyl@business.utah.edu

This article uses managerial control rights data for over 5000 firms from

31 countries to examine the net costs and benefits of cash holdings. We find that

when external country – level share holder protection is weak, firm values are

lower when controlling managers hold more cash. Further, when external

shareholder protection is weak we find that firm values are higher when

controlling managers pay dividends. Only when external shareholder protection is

strong do we find that cash held by controlling managers is unrelated to firm

value, consistent with generally prevailing U.S and international evidence.

We thank Hank Bessemblider, Daniel Chi, Jarrad Harford, Mike Lemmon, Ross

Levine, William Maxwell, Robert McDonald, Adair Morse, Lee Pinkowitz, Henri

Servaes, Frank Warnock, Rohan Williamson, and seminar participants at the

Fourth Doctoral Internationalization Consortium at UCLA, Brigham Young

University, the Federal Reserve Board of D.C., Georgetown University, Louisiana

State University, the University of Minnesota, and the University of Utah for

10
helpful comments. We thank Stijn Claessens, Mara Faccio, and Larry Lang for

providing public access to ownership and control structure data for japan and

Western Europe and thank Amy Dittmar and Jan Mahrt-Smith for providing the

private credit measures used in their international cash holdings study

Article 4:

An Analysis of Working Capital structure and financing pattern of Mauritian

small manufacturing Firms:

-Kesseveen padachi, M S Narashimhan, R Durbarry and C howorth.

The ICAI Journal of applied finance, vol.4, Nov.7, 2016.

The Competitive nature of the business environment requires firms to adjust their

strategies and adopt good financial policies to survive and sustain growth.

Managing Working Capital is Problematic for the small business firms as they

hardly adopt best practices unlike their larger counter parts. This paper, therefore,

examines the structural differences in working capital and the financing pattern of

58 small manufacturing firms, operating in 5 industry groups for the period 1998

to 2003. An analysis of working capital components and funding pattern shows

significant structural changes. While the stock level and trade debtors have not

experienced any major variations, at the account file 80% of short term resources

tied up in working capital. Thus the working capital position of the sample firms

reveals disproportionate increase in current assets investment in relation to sales

resulting in a sharp decline in the working capital turnover. The mean value is 3

times indicating lower operation efficiency. The study also shows and increasing

trend the short term components of working capital financing.

11
Article 5:

Liabilities, Liquidity, and cash management: Balancing Financial Risks

Dimitris N. Chorafas

ISBN: 978-0-471-10630-2

December, 2001

Strategies and advice on balancing financial risk for leveraged companies in

today‘s highly leveraged economy, good liabilities management has become

vitally important. Entire sectors of the economy, and some of the biggest financial

and industrial companies, face dramatic overexposure problems. But adequate

internal liability controls can greatly reduce risk. Featuring case studies in a

number of industries and examples of both proper and improper liabilities

management in major organizations, Liabilities, Liquidity, and cash management

shows managers, accountants investment advisors and other professionals who

deal with liabilities and overexposure how they can implement good internal

controls on liability and overexposure. It provides modern tools, critical

strategies, and timely advice specifically tailored to the needs of companies facing

overexposure and debt risk in a volatile economy.

12
 CHAPTER III
RESEARCH METHODOLOGY

13
 RESEARCH METHEDOLOGY
It‘s imperative that any type of organization in the present environment needs systematic supply
of information coupled with tool of analysis for making sound decision which involves minimum
risk.
A research design is purely and simply the framework or plan for a study that guides the
collection and analysis of the data.

RESEARCH METHODOLOGY:
Research refers to "The systematic method of consisting of enunciating the
problem, formulating a hypothesis, collecting the facts or data, analyzing the
facts and reaching certain conclusion towards the certain problem or certain
generalization for some theoretical formulation.

RESEARCH DESIGN:
Statistical design was conveniently used to study the relative behavior of
consumers. The main purpose to select this design is that it gives more
consistent results, lends itself to generalization and is more reliable.
The survey method is adopted to do the research study under which
information is collected from the customers through structured questionnaires
and personal interview.
SAMPLE DESIGN :
Considering the constraints, it was decided to conduct the study based on sample size of 350
respondents.
The selection was made through approach of random sampling. Scientific method was not
adopted in this study because of financial constraints and also because of lack of time, also the
basic aim of doing the research was academic, hence most convenient way was selected.
TOOLS USED
There are several methods of collecting primary data, particularly in surveys and descriptive
research. Important are:-
 Observation method.

14
  Through questionnaires.

 Interview method.

TYPE OF RESEARCH DESIGN :

A research design generally knows as a method and procedure for acquiring
information needed to solve the problem. It is some statement or specification of
procedures for collecting and analyzing the information required for the
solution of some specific problem. The design selected for this study is
descriptive research and survey research.
 Research Approach: - Exploratory and Descriptive Research
 Sample Size - 350 Retailers who sell white cement & wall putty in
various regions.
 Research Methodology - Interview person on one to one basis using
structured questionnaire.

METHODS OF DATA COLLECTION :

 Through interaction with retailers.
 Through questionnaires filled from the consumer and retailers.
 Data collected by undergoing Primary Research

SOURCES OF DATA COLLECTION :

Date Resources:
The data required for the research can be either primary data or secondary data or both.

Primary data:
Primary data are data freshly for a specific purpose or for a specific research project.
The normal procedure is to interview some people individually or in groups, to get a
sense of people feel about the topic in question, and then develop a formula research
instrument, debug it, and carry it in to field.

15
 Secondary data:
Secondary data are data that were collected for another purpose and already
exists somewhere. Researchers usually start their investigation by examining
secondary data see whether the problem can be partly or wholly solved without
collecting costly primary data secondary data provides a starting point for
research and after offer advantages of low cost and ready availability.

METHOD OF SAMPLING:
part of the population is known as sample. The process of drawing a sample from a
larger population is called sampling. After deciding on the research approach and
instruments, the marketing researcher must design a sampling plan. This calls for three
decisions.

Sampling unit :
Who is to be surveyed? The marketing researcher must define the target
population that will be sampled. Once the sampling unit is determined, a sampling
frame must be developed so that everyone in the target population has an equal or
known chance of being sampled.
Sample size:
Different people were randomly selected from different areas in Chitradurga were
selected for survey. The sample size was 50.
Sampling procedure:
It is the technique in which we selected the sample. The non-probability
sampling method the approaches for survey under which I have selected the samples
as per my convenience
Contact methods:
The selection of the method is used for the present study under which
the respondents are contacted personally and filled the Questionnaire through
them.

16
 OBJECTIVES OF STUDY:
To know and understand the concept of Current assets.
To Study the liquidity position of ULTRATECH CEMENT LIMITED.
To Study the comparison of Current assets.
To Study the performance of Current assets in ULTRATECH CEMENT
LIMITED.
To analyze the current assets for a period of 5 years, that is, from 2016-19.
To draw inferences on managing of current assets.

NEED OF THE STUDY:

Current assets effect the liquidity position of the company and its investment
opportunities so the analysis is done to suggest the company how to maintain the
current assets to overcome the problems of liquidity.
To Show the role of current assets in an organization development.
To know the importance of current assets in ULTRATECH CEMENT LIMITED.
To Study the liquidity position of ULTRATECH CEMENT LIMITED.
To analyze the investment pattern of current assets in the Company.

SCOPE OF STUDY:
ULTRATECH CEMENT LIMITED is a state-owned organization which
has huge amount of assets and different kind of assets. But the scope of the
project is related to the data for a period of 5 year (2016-2021) which covers the
current assets like
Cash
Receivables
Sundry debtors
Short-term loans and advances.
The Scope is limited to the operations of ULTRATECH CEMENT LIMITED.

17
The data used for analysis is for a period of 5 years (2016-19) only.
The information obtained from the primary and secondary data was limited to
ULTRATECH CEMENT LIMITED.

Limitations of Study
ULTRATECH CEMENT is a state-owned organization and it has huge amount of
resources for funds and it has its own assets.

1. The Present study is restricted to only current asset management in ULTRATECH

CEMENTS LIMITED.
2. The present study is limited to a particular area only, that is, Andhra Pradesh.

3. Certain information is not supplied by the organization on confidential grounds. This

aspect may restrict the results to some extent.

4. The period of study taken into consideration is only 5 years, that is, from 2016 to

2021

18
 CHAPTER IV
THEORETICAL FRAME WORK

19
 Theoretical Framework

Current assets represent all the assets of a company that are expected to be conveniently sold,
consumed, used, or exhausted through standard business operations with one year. Current assets
appear on a company's balance sheet, one of the required financial statements that must be
completed each year.

Current assets would include cash, cash equivalents, accounts receivable, stock inventory,
marketable securities, pre-paid liabilities, and other liquid assets. Current assets may also be
called current accounts.

 Current assets are all the assets of a company that are expected to be sold or used as a
result of standard business operations over the next year.

 Current assets include cash, cash equivalents, accounts receivable, stock inventory,
marketable securities, pre-paid liabilities, and other liquid assets.

 Current assets are important to businesses because they can be used to fund day-to-day
business operations and to pay for the ongoing operating expenses.

Current assets contrast with long-term assets, which represent the assets that cannot be feasibly
turned into cash in the space of a year. They generally include land, facilities, equipment,
copyrights, and other illiquid investments.

Current assets are important to businesses because they can be used to fund day-to-day business
operations and to pay for ongoing operating expenses. Since the term is reported as a dollar value
of all the assets and resources that can be easily converted to cash in a short period, it also
represents a company‘s liquid assets.

However, care should be taken to include only the qualifying assets that are capable of being
liquidated at the fair price over the next one-year period. For instance, there is a strong likelihood
that many commonly used fast-moving consumer goods (FMCG) goods produced by a company
can be easily sold over the next year. Inventory is included in the current assets, but it may be
difficult to sell land or heavy machinery, so these are excluded from the current assets.

Depending on the nature of the business and the products it markets, current assets can range
from barrels of crude oil, fabricated goods, work in progress inventory, raw materials, or foreign
currency.

The Present

20
Current financials represent a picture of where the company is today. It‘s a picture of how the
company has performed in the most recent reporting period. Financial statements and reporting is
how the present connects to the past in Business.

Financial Statements

There are three primary financial statements:

Balance Sheet

Income Statement

Cash Flow Statement

They are interconnected, and financial data and information flows from one financial statement
through the others.

The present connects to the future in Business through interest rates or discount rates. These take
into account all the uncertainty and risks inherent in the Business‘s prospects.

―The importance of money flows from it being a link between the present and the future.‖

— John Maynard Keynes

The Future

Financial Projections are the best guesses about what the company is going to do and how it will
perform going forward — this view is equivalent to through the windshield.

Pro Formas

We call Financial projections ―pro formas‖ because they are presented ―in the form of‖ financial
statements.

Valuation

We use discount rates to discount future cash flow projections back into today‘s dollars. The
Present Value of Future cash flows is essentially the valuation of the enterprise or the income-
producing asset.

In publicly traded stocks, the present value of future cash flows is being guessed at by all the
market participants for that stock. Stocks are bought and sold in an auction format based on
investors‘ guesses of the present value of the future cash flows.

21
 CHAPTER V
COMPANY PROFILE

22
 COMPANY PROFILE

The largest manufacturer of grey cement, white cement and concrete in India
UltraTech Cement Ltd is the largest manufacturer of grey cement, ready mix concrete (RMC)
and white cement in India. With a consolidated capacity* of 116.75 MTPA, it is the third largest
cement producer in the world, excluding China.
(*Including 2 MTPA under commissioning by September 2021)
Our Vision
To be the leader
in Building Solutions

Our Mission
To deliver superior value to stakeholders
on the four pillars of
 Sustainability
 Innovation
 Customer Centricity
 Team Empowerment

Our Story
UltraTech Cement Ltd is the largest manufacturer of grey cement, ready mix concrete (RMC)
and white cement in India. It is also one of the leading cement producers globally, and the only
cement company globally (outside of China) to have more than 100 million tonne capacity in one
country.
It has a consolidated capacity* of 116.75 Million Tonnes Per Annum (MTPA) of grey cement.
UltraTech Cement has 23 integrated plants, 1 clinkerisation plant, 26 grinding units and 7 bulk
terminals. Its operations span across India, UAE, Bahrain and Sri Lanka.
(*Including 2 MTPA under commissioning by September 2021)
In the white cement segment, UltraTech goes to market under the brand name of Birla White. It
has a white cement plant with a capacity of 0.68 MTPA and 2 WallCare putty plants with a
combined capacity of 0.85 MTPA.

23
With 100+ Ready Mix Concrete (RMC) plants in 39 cities, UltraTech is the largest manufacturer
of concrete in India. It also has a slew of speciality concretes that meet specific needs of
discerning customers. Our Building Products business is an innovation hub that offers an array of
scientifically engineered products to cater to new-age constructions.
UltraTech pioneered the UltraTech Building Solutions (UBS) concept to provide individual
home builders with a one-stop-shop solution for building their homes. This is the first pan-India
multi-category retail chain catering to the needs of individual home builders (IHBs). The purpose
of this initiative is to engage with home builders at all stages of the construction cycle, empower
them with quality construction products and services, and assist in the completion of their dream
homes.
Largest Indian producer of grey cement, white cement and ready-mix concrete.
Highest market capitalisation in India‘s cement industry
Dealer and retail network of 90,000+ channel partners across the country, with a market reach
extending across more than 80% Indian cities and towns
Commissioned more than 100 ready mix concrete plants in India to support the growing needs of
institutional customers
Grew from 3000 employees in 2005 to more than 22000 employees currently
At
a Glance

Partner of choice as cement provider in the construction of structures and infrastructure projects
Successfully completed the largest acquisition in India‘s cement industry
Commissioned a greenfield project in 2019 in a record 12 months at the lowest cost with ‗zero‘
safety incidents
Addresses 85% power appetite through captive thermal power plants and waste heat recovery
systems
UltraTech‘s Customer Loyalty Program running across India is the largest addressing
masons/contractors
As a socially responsible organisation, UltraTech is touching the lives of more than 1.6 million
people in the local communities around its factories across India.
Milestones

24
 Focus on creation of new capacities through organic and inorganic growth
 MID
1980
First cement plant set up for Grasim (Vikram Cement) and Indian Rayon (Rajashree
Cement)


 1998
Merger of cement business of Indian Rayon and Grasim Cement Capacity: 8.5 MTPA


 2003
Capacity: 14.12 MTPA


 2004
Acquisition of L&T's cement business: UltraTech Cement Ltd. Cement Capacity: 30.04
MTPA + 1.08 MTPA (SDCCL)


 2008
SDCCL divested in 2008 Greenfield Projects Brownfield Expansions Debottlenecking
Cement Capacity: 48.9 MTPA


 2010
Acquisition of Start Cement in the Middle East and greenfield expansions Cement
Capacity – 52 MTPA


25
 2012
Brownfield expansions in Chhattisgarh and Karnataka, grinding unit commissioned Hotgi,
Maharashtra, and 1.5 MT at Rajashree, Karnataka Port Based bulk terminal of 0.5 MT at
Cochin


 2013
New grinding unit capacity of 1.6 MTPA commissioned at Jharsuguda, Orrisa Acquired
unit in Sewagram and GU in Wanakbori, Gujarat with a capacity of 4.8 MT Cement
capacity - 62 MTPA


 2015
Commissioned new grinding unit at Jharsuguda (1.6 MTPA) Acquired Sewagram and
Wanakbori units from Jaypee Cement (4.8 MTPA)


 2017
Largest single cement company in India Capacity: 66.3 MTPA March: Grinding plants
commissioned in Jhajjar, Dankuni, Patliputra


 2018
Acquires Jaypee Cement business (21.2 MTPA) Largest cement company in India, 4th in
world (excluding China) Cement Capacity: 93 MTPA


 2019
Commissioned integrated unit in Dhar (3.5 MTPA) Acquired cement business of Binani
Cement (6.25 MTPA) Cement capacity: 102.75 MTPA


26
 2020
Merger of cement business of Century Textiles & Industries Ltd with UltraTech Cement.
UltraTech becomes the first cement company globally to have more than 100 MTPA
capacity in a single country outside of China. Cement Capacity: 116.75 MTPA

Integrity
Acting and taking decisions in a manner that is fair and honest. Following the highest standards
of professionalism and being recognised for doing so. Integrity for us means not only financial
and intellectual integrity, but encompasses all other forms as are generally understood.
Commitment
On the foundation of Integrity, doing all that is needed to deliver value to all stakeholders. In the
process, being accountable for our own actions and decisions, those of our team and those on the
part of the organisation for which we are responsible.
Passion
An energetic, intuitive zeal that arises from emotional engagement with the organisation that
makes work joyful and inspires each one to give his or her best. A voluntary, spontaneous and
relentless pursuit of goals and objectives with the highest level of energy and enthusiasm.
Seamlessness
Thinking and working together across functional groups, hierarchies, businesses and
geographies. Leveraging diverse competencies and perspectives to garner the benefits of synergy
while promoting organisational unity through sharing and collaborative efforts.
Speed
Responding to internal and external customers with a sense of urgency. Continuously striving to
finish before deadlines and choosing the best rhythm to optimise organisational efficiencies.

27
 CHAPTER VI
DATA ANALYSIS AND
INTERPRETATION

28
INTRODUCTION TO ANALYTICS ON CURRENT ASSETS

Analysis on Current assets is concerned with the problems that arise in attempting to
manage the Current assets, the Current liabilities and the interrelationships that insist
between them. The term Current assets refers to those liquid assets of the company which
are either held in the form cash or can be easily converted into cash within one
accounting period, usually a year examples of current assets are cash, short term
investments, sundry debtors or account receivable, stock, loans and advances etc. Current
liabilities on the other hand have to be paid within the accounting period like sundry
creditors or accounts payable bills payable, outstanding expenses, short term loans etc.
The goal of analysis of current assets is to manage the firm‘s current assets in such a way
that a satisfactory level is maintained. The current assets should be large enough to cover
the margin of safety. The current assets can also explain the ratio at what extent of.

1. The management of fixed assets and current assets differ in three important ways
2. In managing fixed assets the time factor is very important. That is why
discounting and compounding play a very important role in any capital budgeting
decision. But because the time frame of current assets is only one accounting
period, the time value of money is less significant in the management of current
assets.
3. The liquidity position of a firm is dependent on the investment in current assets,
the more, the better, where as the role of fixed assets as for as liquidity is
concerned is negligible.
4. Any short-run immediate need of the company whether it be need for cash or
adjustments to fluctuation is sales can be made only through adjusting levels of
the various components of the current assets which form part of management of
working capital.

29
Data Analysis and interpretation :

In this chapter an attempt has been made to present the information about the
current assets analysis and interpretation.

1. STOCKS

Table 1: Analysis related to the stocks during the year 2016-2021

PREVIOUS CURRENT ABSOLUTE %

YEAR
YEAR YEAR CHANGE CHANGE
2016-2017 274.43 274.51 -0.08 -0.02915
2017-2018 274.51 274.61 -0.10 -0.03643
2018-2019 274.61 274.64 -0.03 -0.01092
2019-2020 274.64 288.63 -13.99 -5.09394
2020-2021 288.63 288.65 -0.02 -0.00693

Interpretation:

The above table reveals the change and the percentage change in the amount of
stocks in rupees from 2016-2021.

30
Graph 1:

290

285

280

275 PREVIOUS YEAR

CURRENT YEAR
270

265

Interpretation:

The above graph is showing the trends in the stocks levels. It is showing the
change in the stock in absolute and percentage over the period of 2016-2021.

31
 2. Sundry Debtors against Sales

Table 2: Analysis related to the Sundry Debtors during the year 2016-2021.

PREVIOUS CURRENT ABSOLUTE %

YEAR
YEAR YEAR CHANGE CHANGE
2016-2017 1,414.89 1,276.17 138.72 9.804296
2017-2018 1,276.17 1,714.20 -438.03 -34.3238
2018-2019 1,714.20 2,353.19 -638.99 -37.2763
2019-2020 2,353.19 1,848.28 504.91 21.45641
2020-2021 1,848.28 2,285.99 -437.71 -23.682

Interpretation:

The above table reveals the change and the percentage change in the amount of
Sundry Debtor in ` from 2016-2021. It has increased from 1,276.17 to 2,285.99

32
Graph 2:

3,000.00

2,500.00

2,000.00

1,500.00 PREVIOUS YEAR

CURRENT YEAR
1,000.00
ABSOLUTE CHANGE
500.00 % CHANGE

0.00
1 2 3 4 5
-500.00

-1,000.00

Interpretation:

The above graph is showing the trends in the Sundry Debtor Levels. It is showing
the change in the percentage and absolute change figure over the period of 2016-2021.

33
 3. Cash and Bank

Table 3: Analysis related to the cash and Bank during the year 2016-2021.

PREVIOUS CURRENT ABSOLUTE %

YEAR
YEAR YEAR CHANGE CHANGE
2016-2017 2,235.20 2,217.74 17.46 0.781138
2017-2018 2,217.74 199.32 2,018.42 91.01247
2018-2019 199.32 656.47 -457.15 -229.355
2019-2020 656.47 310.52 345.95 52.69852
2020-2021 310.52 1,876.55 -1,566.03 -504.325

Interpretation:

The above table reveals the change and the percentage change in the amount of
cash and bank in rupees from 2016-2021. It has decrease from 2,217.74 to 1,876.55

34
 Graph 3:

GRAPH RELATED TO CASH AND BANK DURING THE YEAR

2016-2021

2,500.00

2,000.00

1,500.00

1,000.00
PREVIOUS YEAR
500.00 CURRENT YEAR
0.00 ABSOLUTE CHANGE
1 2 3 4 5 % CHANGE
-500.00

-1,000.00

-1,500.00

-2,000.00

Interpretation:

The above graph is showing the trends in the cash and bank balance levels. It is
showing the change in the percentage and absolute figure over the period of 2016-2021.

35
4. Loans and Advances:

Table 4: Analysis related to the Loans and Advances during the year 2016-2021.

PREVIOUS CURRENT ABSOLUTE %

YEAR
YEAR YEAR CHANGE CHANGE
2016-2017 2,466.59 2,043.37 423.22 17.1581
2017-2018 2,043.37 4,510.36 -2,466.99 -120.731
2018-2019 4,510.36 7,661.68 -3,151.32 -69.8685
2019-2020 7,661.68 8,096.25 -434.57 -5.67199
2020-2021 8,096.25 7,967.92 128.33 1.585055

Interpretation:

The above table reveals the change and the percentage change in the amount of
cash and bank in ` from 2016-2021. It has increased from 2,043.37 to 7,967.92 over the
period of five years.

36
Graph 4:

10,000.00

8,000.00

6,000.00
PREVIOUS YEAR
4,000.00 CURRENT YEAR

2,000.00 ABSOLUTE CHANGE

% CHANGE
0.00
1 2 3 4 5
-2,000.00

-4,000.00

Interpretation:

The above graph is showing the trends in the cash and bank balance levels. It is
showing the change in the percentage and absolute figures over the period of 2016-2021.

37
RATIOS:

1. STOCKS TO CURRENT ASSETS:

Table 5: Data related to the stocks to current assets ratio during the year 2016-2021.

Formula:

Stock at the end of the year

Stocks to Current assets = ----------------------------- X 100
Current assets

CURRENT
YEAR STOCKS
ASSETS RATIO
2016-2017 274.51 5,718.90 4.80
2017-2018 274.61 5,015.02 5.47
2018-2019 274.64 6,797.13 4.04
2019-2020 288.63 5,992.68 4.81
2020-2021 288.65 7,884.59 3.66

Interpretation:

The data in the above table represents the ratio of stocks to current assets for the
period of 5 years i.e. from 2016-2021, the ratio was 4.80% in 2017 it increase to 5.47% in
the year 2018, from 2019 it decrease to 4.04% and then in the year 2021 to 3.66%

38
 Graph 5:

GRAPH OF STOCKS RATIO DURING

THE YEAR 2016-2021

9000
8000
7000
6000
5000 STOCKS

4000
CURRENT ASSETS
3000
2000 CURRENT ASSETS
RATIO
1000
0

Interpretation:

The above graph is showing the ratios of stocks to current assets over the period
of 2016-2021. From 2017 to 2018 the ratio is high due to the less stocks levels. But in the
year 2019 & 2020 it is very low due to low amount of stock

39
2. SUNDRY DEBTORS TO CURRENT ASSETS:

Table 6: Data related to the Sundry Debtors to Current asset ratio during the year 2016-
2021.

Formula:

Debtors at the end of the year

Sundry Debtors to Current assets = ----------------------------- X 100
Current assets

SUNDY CURRENT
YEAR
DEBTORS ASSETS RATIO

2016-2017 1,276.17 5,718.90 22.31

2017-2018 1,714.20 5,015.02 34.18

2018-2019 2,353.19 6,797.13 34.62

2019-2020 1,848.28 5,992.68 30.84

2020-2021 2,285.99 7,884.59 28.99

Interpretation:

The data in the above table represents the ratio of Sundry Debtors to current assets
from the period of 5 years i.e. from 2016-2021, the ratio was 22.31% in 2017 it increases
to 34.18% in the year 2018 to 2019, from 2020 to 2021 it decrease to 30.84% and further
decreased to 28.99%.

40
Graph 6:

GRAPH OF SUNDRY DEBTORS TO THE CURRENT

ASSETS RATIO.

9,000.00
8,000.00
7,000.00
6,000.00
5,000.00 SUNDY DEBTORS

4,000.00
CURRENT ASSETS
3,000.00
2,000.00 CURRENT ASSETS
RATIO
1,000.00
0.00

Interpretation:

The above graph is showing the ratios of Sundry Debtors to current assets over
the period of 2016-2021. From 2017 to 2018 the ratio is very high due to the huge
amount of debtors. But in the year 2019 & 2020 it is very less due to low amount of
debtors.

41
3. CASH AND BANK BALANCE TO CURRENT ASSETS:

Table 7: Data related to the cash & Bank to current assets ratio during the year 2016-19.

Formula:

Cash and Bank at the end of the year

Cash and Bank to Current assets = ----------------------------- X 100
Current assets

CASH AND CURRENT

YEAR
BANK ASSETS RATIO
2016-2017 2,217.74 5,718.90 38.77
2017-2018 199.32 5,015.02 3.97
2018-2019 656.47 6,797.13 9.65
2019-2020 310.52 5,992.68 5.18
2020-2021 1,876.55 7,884.59 23.80

Interpretation:

The data in the above table represents the ratio of cash & bank balances to current
assets for the period of 5 year i.e. from 2016-2021, the ratio was 38.77% in 2017, it
decrease to 3.97% in the year 2018 it increased to 9.65% and then in the year 2021
drastically increased to 23.80%.

42
 Graph 7:

GRAPH OF CASH & BANK TO CURRENT ASSETS RATIO

9,000.00
8,000.00
7,000.00
6,000.00
5,000.00 CASH AND BANK

4,000.00
CURRENT ASSETS
3,000.00
2,000.00 CURRENT ASSETS
RATIO
1,000.00
0.00

Interpretation:

The above graph is showing the ratios of cash and bank to current assets over the
period of 2016-2021. From 2017, 2019 and 2020 the ratio is very low, due to the less
cash and bank balance. But in the year 2018 it is high due to more cash and bank balance.

43
4. LOANS & ADVANCES TO CURRENT ASSETS

Table 8: Data related to loans & advances to current assets ratio during the year 2016-
2021.

Formula:

Loans and Advances at the end of the year

Loans and Advances to Current assets = ----------------------------- X 100
Current assets

LOANS & CURRENT

YEAR
ADVANCES ASSETS RATIO
2016-2017 2,043.37 5,718.90 35.73
2017-2018 4,510.36 5,015.02 89.93
2018-2019 7,661.68 6,797.13 112.71
2019-2020 8,096.25 5,992.68 135.10
2020-2021 7,967.92 7,884.59 101.05

Interpretation:

The data in the above table represents the ratio of loans & advances to current
assets for the period of 5 years i.e. from 2016-2021, the ratio was 35.73% from 2017 to
2018, it increase to 112.71% in the year 2019, then decreases to 101.05% in 2021.

44
 Graph 8:

GRAPH OF LOANS AND ADVANCES RATIO TO CURRENT ASSETS

9,000.00
8,000.00
7,000.00
6,000.00
5,000.00 LOANS & ADVANCES

4,000.00
CURRENT ASSETS
3,000.00
2,000.00 CURRENT ASSETS
RATIO
1,000.00
0.00

Interpretation:

The above graph is showing the ratio of loans & advances to current assets over
the period of 2016-2021. From 2017 to 2018 and in 2019the ratio is very low, due to
fewer amounts of loans and advances. But in the year 2020 it is high due to high amount
of loans and advances.

45
LIQUIDITY RATIOS:

1. CURRENT RATIO

Table 9: Table showing the data related to the current assets

Formula:

Current assets
Current Ratio = -----------------------------
Current Liabilities

CURRENT CURRENT
YEAR RATIO
ASSETS LIABILITIES

2016-2017 5,718.90 9,693.96 0.58

2017-2018 5,015.02 11,261.69 0.44
2018-2019 6,797.13 15,623.62 0.43
2019-2020 5,992.68 14,672.12 0.40
2020-2021 7,884.59 21,312.91 0.36

Interpretation:

The data in the above table represents the current ratio of the organization for the
period of 5 years. In every year the ratio was less than 1%.

46
Graph 9:

25,000.00

20,000.00

15,000.00
CURRENT ASSETS
10,000.00 CURRENT LIABILITIES
RATIO
5,000.00

0.00

Interpretation:

The above graph is showing the current ratio of the organization for the period of
5 years. In every year the ratio was less than 1%.

47
2. QUICK RATIO

Table 10: Table showing the data related to the quick ratio

Formulae:

Current assets – (stock at the end + prepaid exp)

Quick assets = ---------------------------------------------------------
Current Liabilities – (Bank Overdraft)

CURRENT
YEAR QUICK ASSEST RATIO
LIABILITIES

2016-2017 3,493.91 9,693.96 0.36

2017-2018 1,913.52 11,261.69 0.16
2018-2019 3,009.66 15,623.62 0.19
2019-2020 2,158.80 14,672.12 0.14
2020-2021 4,162.54 21,312.91 0.19

Interpretation:

The data in the above table represents the quick ratio of the organization for the
period of 5 years. In every year the ratio was less than 1%.

48
Graph 10:

GRAPH SHOWING CURRENT RATIO

25,000.00

20,000.00

15,000.00
QUICK ASSEST
10,000.00
CURRENT LIABILITIES
RATIO
5,000.00

0.00

Interpretation:

The above graph is showing the quick ratio of the organization for the period of 5
years. In every year the ratio was less than 1%.

49
3. WORKING CAPITAL

Table 11: Analysis related to the working capital during the year 2016-2021.

Formulae:

Working Capital = Current assets – Current Liability

NET
CURRENT CURRENT WORKING
YEAR
ASSETS LIABILITIES
CAPITAL
2016-2017 5,718.90 9,693.96 -3,975.06
2017-2018 5,015.02 11,261.69 -6,246.67
2018-2019 6,797.13 15,623.62 -8,826.49
2019-2020 5,992.68 14,672.12 -8,679.44
2020-2021 7,884.59 21,312.91 -13,428.32

Interpretation:

From the above table we can observe that the current liabilities exceed current
assets in the every year i.e. from 2016 to 2021. In the year 2020 the net current assets
increased to -8,679.44 from -3,975.06 crore in 2017.

50
 Graph 11:

NET WORKING CAPITAL

25,000.00

20,000.00

15,000.00

10,000.00 CURRENT ASSETS

5,000.00
CURRENT LIABILITIES
0.00
1 2 3 4 5 NET WORKING
-5,000.00 CAPITAL
-10,000.00

-15,000.00

-20,000.00

Interpretation:

From the above graph we can observe that the working capital of the organization
is negative in the every year i.e. 2016-2021.

51
 CHAPTER VII
RESEARCH FINDINGS &
SUGGESTIONS

52
 FINDINGS

1. It is observed that the stocks and the ratio to the total current assets are fluctuating over the
period of 5 years.
2. It is found that the cash and bank balances are increased but the change and the ratio to the
total current assets are fluctuating.
3. It is found that the years 2018 and 2019 are the good years for the company when they are
having the cash and bank balances in huge volume.
4. It is identified that there are fluctuations in sundry debtors and the ratio of the sundry debtors
to the total current assets shows the decreasing trend over the year.
5. It is found that the all current assets are fluctuating.
6. The loans and advances are decreasing over a period of time.
7. It is found that the net current assets are negative. The current liabilities are exceeding the
current assets in every year.
8. It is also identified that there is an increase in current liabilities and decrease in current
assets.
9. The liquidity position of the company is not very good and satisfactory. Because both the
liquidity ratios, current and quick ratios are less than 1. But the standard ratios are more than
one.
10. The working capital of the organization is negative.
11. Customer satisfaction with respect to the ULTRATECH CEMENT LTD. is satisfactory in
East zone, but company needs to work hard in West zone to penetrate into the market player
safe zone.
12. Asian has come out as a Market Leader in primer sector according to our survey.
13. According to retailers it becomes very tedious job to use primer in powder form. They want
user friendly primer.
14. Most of consumers didn‘t know ULTRATECH primer Primaxx.
15. To minimize the transportation cost and increase the availability company has allocated
stockiest area wise.
16. Retailers are facing price variance issue for the same product at different place.
17. Retailers want more prizes, incentives, gift and tours.
18. Dealers also want more meeting with officials of the cement companies.

53
19. Bulk consumers want more and more cash discount.
20. Surprisingly, retailers sell more local primer brands like Mosam, Metro, Navdeep etc. than
some known brands, because of its service, profit margin and availability.

SUGGESTIONS

1. To increase the sales of UltraTech Cement in such area there is a need of time to time
demo program, seminars & meetings.
2. There is a need of more promotional activities specially in sub dealer and outside Chitradurga
Area.
3. Time to time offers should be provided to the customer from our UltraTech Company. Need
to available all the construction parts, material and tools our distributor office.
4. UltraTech Company should be change the colour of PSC bags.
5. The company must improve its supply so as the demand for the cement can easily be met.
6. It must target the rural markets as they are providing a good marketing opportunity these
days.
7. The internal control system must be improved to eliminate the fluctuations.
8. To maintain sound liquidity position, fluctuations in cash and bank balances should be
reduced.
9. In order to reduce the bad debts, the credit collection period should be reduced.
10. The company has to maintain proper records showing full particulars including quantitative
details of the current assets.
11. The current asset should be managed carefully else it will lead to more blockages of funds.
12. The current asset includes 35% as receivables hence they should try to decrease their
receivables.
13. The company needs to maintain the liquidity ratios i.e. current and quick ratios closer to the
standard 1.
14. Need to available all the construction parts, material and tools our distributor office.

54
 CHAPTER -VIII
SUGGESTIONS &
RECOMMENDATIONS

55
 SUGGESTIONS & RECOMMENDATIONS
The company has enough funds to meet its current liabilities. But at the same time, the company
has a huge amount of cash blocked in sundry debtors. This call for a change in the company
policies as these debts could turn into bad debts which in turn would take away the competitive
advantage from ULTRA TECH CEMENTS LIMITED due to sudden cash crunch. Thus the
company must try to improve its average collection period and increase average payment period
to improve its analysis on current assets management efficiency.
The company needs to maintain the liquidity ratios i.e. current and quick ratios closer to the
standard 1 to avoid the liquidity crisis.
It can be concluded that for the smooth functioning of operations of the company it need to
maintain the current assets in proportion to its current liabilities, so that it can maintain better
liquidity.
RECOMMENDATIONS

ULTRATECH Cement Ltd. (ULTRATECH White Cements Works) is an

established and known brand in the market scenario it would be beneficial for them if they pull
their socks now and work on Promotional Activities and Marketing Strategies for differentiating
advantage enjoyed by the competitors.
ULTRATECH White Cement needs to really plan heavy and systematic investments for
promotions of their products if they really want to excel in the retail market. This is primarily
recommended because promotional support is the back bone of marketing and sales.
Company should arrange more meetings with painters and retailers to aware about our product
Primaxx.
Company should driver more promotional activity to aware about Primaxx.
To sustain top 3 position in the primer sector, first company should beat Nerolac and Dulux by
aggressive team work.
Company should appoint more versatile distributor in Ahmedabad area as early as possible. So
that market can be covered as and sale can be increased in that area as compared to other brands.
West Ahmedabad has large growing market. There is lot of market yet not being covered by
ULTRATECH Products. Making contact and relation with retailers will help in creating
awareness.

56
BIBLIOGRAPHY

57
 BIBLIOGRAPHY

Text Books:

1. Jain, SP & Narang, KV,‖Advanced Accounting‖, Kalyani Publications

2. Maheshwari SN, ―Finance Management‖, Sultan Chand & Sons

3. Prasanna Chandra, ―Finance Management‖, Tata McGraw Hill

4. Pandey I.M., ―Finance Management‖, Vikas Publication

5. Vishwanath S.R, ―Corporate Finance‖, 2nd edition, Sage Publication Inc.

6. Richard A Brealey, stewart c Myers, Franklin Allen, Pitabas Mohanty, ―principles of

Corporate Finance‖, 8th edition, Tata Mc Graw-Hill Publishing Company Ltd.

7. Khan M Y, Jain P K, ―Financial Management‖, 2nd edition, Tata Mc Graw-Hill

publishing Company Ltd.

8. Chandra Bose D, ―Inventory Management‖, 2006, Prentice-Hall of India Private Ltd.

9. John J Hampton, ―Financial Decision Making‖, 4th edition, Prentice-hall of India Private

Ltd.

WEBSITES
http://www.UltraTechcementsltd.com
http://www.UltraTechcement/india.com
http://www.UltraTechcement.com
http://in.reuters.com
http://bilumi.org/Main/?gclid=CIub5da1z6QCFVJB6woddHPrEA
http://www.adityabirla.com/social_projects/overview.htm

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