CONTENTS

CHAPTER-I PAGE NO

INTRODUCTION

OBJECTIVES OF THE STUDY

NEED OF THE STUDY

SCOPE OF THE STUDY

LIMITATIONS

CHAPTER –II

RESEARCH METHODOLOGY

CHAPTER-III

COMPANY PROFILE

CHAPTER-IV

DATA ANALYSIS AND INTERPRETATION

CHAPTER-V

FINDINGS

BIBLIOGRAPHY

NEED OF THE STUDY

To understand the existing position of company relating to its financial position and to know what are

the factors that result an organization yield profit and loss.

OBJECTIVES OF THE STUDY

The main aim of the study is to analyze the financial performance of AMBUJA CEMENT

1. To review and growth working of AMBUJA CEMENT during 3 years.

2. To evaluate the financial analysis of its business operations.

3. Internal external factors that influence AMBUJA CEMENT

4. Management approach towards AMBUJA CEMENT

SCOPE

The scope of study is limited to collecting data published in annual reports of the company with

reference to the objectives stated above and an analysis of data with a view to understand the solutions

by solutions by applying various ratios relating to balance sheets.

LIMITATIONS

As adequate data was not able to pool because of the secrecy maintained by the firm, proper

justification for the project was not done.

The study is limited to the financial analysis of AMBUJA CEMENT

The study is confined to the figures available on paper and internet.

METHODOLOGY

The study is based on secondary data.

The secondary data was collected from company’s annual reports from 2008-20011. through

Various books, News papers and Internet.

CHAPTER-III

COMPANY PROFILE

Ambuja Cements Ltd. (ACL) is one of the leading cement manufacturing companies in India. The Company, initially called Gujarat Ambuja Cements Ltd., was founded by Narotam Sekhsaria in 1983 with a partner, Suresh Neotia. Sekhsaria’s business acumen and leadership skills put the company on a fast track to growth. The Company commenced cement production in 1986. The global cement major Holcim acquired management control of ACL in 2006. Holcim today holds little over 46% equity in ACL. The Company is currently known as Ambuja Cements Ltd.

ACL has grown dynamically over the past decade. Its current cement capacity is about 25 million tonnes. The Company has five integrated cement manufacturing plants and eight cement grinding units across the country. ACL enjoys a reputation of being one of the most efficient cement manufacturers in the world. Its environment protection measures are on par with the finest in the country. It is one of the most profitable and innovative cement companies in India. ACL is the first Indian cement manufacturers to build a captive port with three terminals along the country’s western coastline to facilitate timely, cost effective and environmentally cleaner shipments of bulk cement to its customers. The Company has its own fleet of ships. ACL has also pioneered the development of the multiple bio-mass co-fired technology for generating greener power in its captive plants.

ACL has always met tough challenges and seized the opportunities that have come its way. It has nurtured the same spirit of enterprise and search for cutting-edge technology with which it started. It thus continues to be the driving force and in many ways a benchmark for the cement industry in India.

Milestones

1986

Ambuja Cements' first cement manufacturing plant at Ambujanagar, Gujarat worth 0.7 million tonnes capacity commences production

1987-1988

A milestone for the industry: installation of a new generation high-efficiency air separator which close-circuited the operation of the cement mill.

Over 40% of cement production involves power. The Company has achieved significant energy efficiency in its kilns. (For example, outstanding energy efficiency with increased productivity has been achieved even in the Company’s oldest plant at Ambujanagar. Its plant at Himachal Pradesh pushed up productivity while bringing down power costs and also cutting stabilising time, which is critical in cement plants, from upto 18 months to a mere three months).

1988-1989

Ambuja Cements sets up another iconic milestone by undertaking the Van-Vihar project to convert a mined area into an environmentally restored and scenic location.

1992-1993

Setting up of a 9.4 lakh tonnes plant at Ambujanagar – Gujambuja Cement Ambuja Cements introduces the cutting edge concept of bulk transportation in the countryGujambuja Cement.

Three ships specially designed for the purpose are ordered (The first, ‘Ambuja Shikar’ sets up a new ‘peak’ for industry emulation).

Setting up of the ambitious one-million tonne cement plant at Suli in Himachal Pradesh.

At a time when CSR is not yet common currency, the Company adopts Kodinar Taluka (Junagadh district, Gujarat) for all-round development. It marks the unveiling of the ‘human face’ for enlightened corporates of the same mindset and genre.

1994-1995

The blistering pace is sustained. Clinkerisation facility in Suli, Himachal Pradesh and Ropar, Punjab is

commissioned. Third one-million tonne plant is set up at Ambujanagar.

1996-1997

The Company sounds the boards for a new peak of corporate excellence in the global competitive milieu.

Achieves highest-ever export by an Indian cement company:5.33 lac tons of cement and clinker are exported.

1997-1998

The industry sits up and takes note as a 40 MW power plant is put up at low cost. This increases power generation capacity at Ambujanagar.

A new 12MW power plant is also set up at Himachal Pradesh. Total capacity of the power plant is enhanced.

The commitment to good corporate citizenship continues as major environment protection measures are undertaken at Kashlog mines in Himachal Pradesh.

1998-1999

Plans are unveiled for a new greenfield plant at Guntur, Andhra Pradesh

1999-2000

India’s cement industry applauds as a cement terminal is set up in Sri Lanka.

2000-2001

Cranking up the pace again, work begins on a two-million tonnes capacity plant at Chandrapur district, Maharashtra.

An earthquake devastates Gujarat. Ambuja Cements demonstrates exemplary caring and concern. The rehabilitation

campaign becomes a model for relevance and community involvement.

2002-2003

Excellence becomes a way of life in the cement industry. The Chandrapur plant achieves over 100% capacity utilisation in the very first year of production.

Not content to rest on proverbial laurels, a greenfield cement plant is now planned at Kutch, Gujarat.

2005-2006

The erstwhile Ambuja Cements Eastern Limited is amalgamated with the Company.

2007

Another landmark year for a company that believes in cementing its bonds with the community around it:

A sustainable rural marketing model is taken upIt provides technical support in building rural infrastructure and imparting training skills to villagers.

The Government of India confers the Padma Bhushan award to company Chairman, Suresh K Neotia for his contribution to Indian business and industry.

2008

Yet another far sighted driving initiative:Resources are allocated to strengthen the Occupation Health and Safety Management system.

Procedures and programmes are put in place to ensure a ‘zero harm’ working environment.

It is an indication of the global perspective which makes the Company a reference point for the industry.

The Company also sets up the Corporate Communications department, thus marking its deep commitment to be a responsive organisation, answerable and accountable to its key internal and external stakeholders.

2009

The Company launched its knowledge initiative i.e. Ambuja Knowledge Center,to enable industry professionals get a first-hand feel of the world of cement and concrete. During the year, three centers became operational in the cities of Jaipur, Ahmedabad and Kolkata.

2010

Opening of Dadri PlantOn 24th February 2010, Ambuja Cements Ltd (ACL) inaugurated its cement plant (grinding unit) at Dadri, Uttar Pradesh. Capacity: 1.5 million tonnes..

On 27 March, 2010, Ambuja Cements Ltd (ACL) inaugurated its cement plant (grinding unit) at Nalagarh, Himachal Pradesh. Capacity: 1.5 million tonnes.

In December 2010, the Dadri Grinding Unit in its very first year of operation received the Integrated Management System (IMS) Certification, including ISO 9001:2008, ISO 14001:2004, and OHSAS 18001:2007 by BSI (U.K.).

Vision

To be most admired and competitive company in our industry

Mission

1. Delighted Customers

My actions speak more about my company than a mere advertisement.My function, however remote to the customer, ultimately leads to satisfying him. My connection to him is like God.I may not see it. But, it exists.

2. Inspired Employees

I don't need orders to trust my colleagues.I don't need orders to seek challenges.Or to meet them either. That, I know, is I CAN.

3. Enlightened partners

I will build enduring relationships with my dealers and suppliers.The full benefit of our engagement with dealers and suppliers will only come when they act as partners in satisfying the customer. I will, therefore, create win-win associations between my dealers, suppliers, my company and my customers.

4. Energised Society

I will energise, involve and enable people around me to realize their potential.The communities around me are a part of my support system. A small improvement in their life will have a multiplier effect for everyone.

5. Cleaner Environment - Pollution control

I will leave a cleaner planet for my children. For this, I don’t need the rule book.

6. Cleaner Environment – natural resources

I will use Nature responsibly and conserve its resources.If I allow Nature to replenish itself, it will provide me with a permanent livelihood. And, the benefit will extend even to my children’s children.

7. Safety

I will adopt zero harm practices – at work and everywhere. I never forget that my family’s future depends on my safety.

Awards, Achievements & Recognition

2003-2004

Business World & FICCI ‘Corporate Social Responsibility’ (CSR) award for recognising the impact of business on environment and society: second runner-up

Asian Institute of Management CSR award for ‘poverty alleviation’

2004-2005

Ernst & Young ‘Entrepreneur of the Year’ (Manufacturing) Asian Institute of Management Award for ‘Environmental Excellence’ Greentech 'Environment Excellence Award' in the Gold category by Greentech

Foundation to GACL, Bhatinda 'Enviroment Week awards' for plantation, air, noise and water pollution control and

community development 'Safety Week awards' for safer mining

2005-2006

'Asian CSR Award' (Environment Excellence) 2005 for corporate sustainable development at GAC (India) Works

Centre for Science and Environment Green rating Project award to GACL (second rank) 'Best Environment Management Practices Award' for the Ropar unit from the State

Pollution Control Board Capexil 'Certificate of Export Recognition' to GACL (Mumbai) in recognition of

outstanding export performance

Awards won by the Maratha Limestone Mine of Maratha Cement Works (a unit of Ambuja Cements Ltd) Upparwahi

'Directorate of Mines Safety Award 2006', as part of the Metalliferous Mines Safety Week

2007

In Mines Environment & Mineral Conservation Week–Indian Bureau of Mines 'Corporate Excellence Award 2007' awarded to ACL by the Indian Institute of Materials

Management, Chandigarh Dun & Bradstreet 'American Express Corporate Award 2007' to ACL 'National Award for Environmental Excellence' in Opencast Mining from NCBM (2nd

place – to Ambuja’s Sugala Limestone Mine)

2008

'Certificate of Merit' by Rajasthan State Productivity Council, Jaipur 'Gobar Times Green Schools Programme Awards' by Centre for Science and

Environment (CSE) For the Year 2008 : Ambuja Public School : Rabriyawas

2009

BCT Panvel received re-certification on ISO 9001-2008, ISO 14001-2004 & OHSAS18001-2007

Ambujanagar has won 'Best Environmental Excellence in Plant Operation' – National award by NCBM 2009'Certificate of Appreciation' for Accident Free million man hour our worked - Gujarat Safety Council – Baroda 2009

Management Team

Suresh Neotia, Chairman Emeritus

Co-promoter and Chairman Emeritus of Ambuja Cements Limited, Mr. Neotia is a businessman and an industrialist of repute. A member of the Central Board of the Reserve Bank of India, Mr. Neotia is also known for his association with numerous cultural institutions as well as charitable organisations. The President of India conferred upon him the Padma Bhushan in the year 2008.

N. S. Sekhsaria, Chairman

An industrialist reputed for his business acumen, Mr. Sekhsaria is the main promoter of Ambuja Cements Limited. He has created new benchmarks in the cement industry with path-breaking and innovative thinking and turned cement from a commodity into a brand. He is Chairman of ACC Ltd. and also of Ambuja Cements Limited.

Paul Hugentobler, Vice Chairman

Mr, Hugentobler, a Swiss national, joined Holcim Group Support Limited in 1980 as Project Manager and in 1994 was appointed Area Manager. He has been a member of the Executive Committee of Holcim since January 2002 with responsibility for South Asia and ASEAN excluding Philippines. He joined the Board in May 2006 and in September 2009 was made Non-executive Vice Chairman.

Markus Akermann, Director

Mr. Akermann, a Swiss national, began his professional career in 1975 with the Swiss Bank Corporation. In 1978, he moved to Holcim where he was active in roles like Area Manager for Latin America and Holcim Trading. In 1993, he was appointed to the Executive Committee with responsibility for Latin America and international trading. He was appointed CEO of Holcim Limited in 2002. He joined the board in 2006.

M L Bhakta, Director

Mr. Bhakta is a senior partner of Messrs Kanga & Company, a leading firm of advocates and solicitors in Mumbai. He has vast experience in the legal field, especially in matters relating to corporate law, banking and taxation. He was Chairman of the Taxation Law Standing Committee of LAW ASIA. He joined the board in 1985.

Nasser Munjee, Director

A Master’s degree holder from the London School of Economics, Mr. Munjee is a board member of a number of companies. He has a deep interest in rural development, housing finance and urban issues, specially the development of modern cities and humanitarian causes. He has been awarded the “Best Non-Executive Independent Director 2009’ award by The Asian Centre for Corporate Governance. He joined the board in 2001.

Rajendra P Chitale, Director

An eminent Chartered Accountant, Mr. Chitale is the managing partner of M/s M.P. Chitale & Associates. He has served as a member of the Insurance Advisory Committee, the Company Law Advisory Committee and other committees of the Government of Maharashtra and the Government of India. He is on the board of several large corporations. He joined the board in July 2002.

Shailesh Haribhakti, Director

Mr. Haribhakti Is the Executive Chairman of BDO Consulting Private Ltd and the Managing Partner of Haribhakti & Co – Chartered Accountants. He is on the Board of Directors of several private and listed companies. He has been awarded the ‘Best Non-Executive Independent Director 2007’ award by The Asian Centre for Corporate Governance. He joined the Board in May 2006.

Omkar Goswami, Director

A professional economist, Dr. Goswami has taught and researched economics for nearly two decades. In 1997, he moved away from formal academics to become the editor of Business India, one of India’s prestigious business magazines. He has served as the Chief Economist of the Confederation of Indian Industry and is on the Board of several large companies. He joined the Board in July 2006.

Naresh Chandra, Director

A Padma Vibhushan awardee in 2007, Mr. Naresh Chandra is a postgraduate from the Allahabad University. He has held several important positions within the Government of India, including Governor of the State of Gujarat and India’s ambassador to the United States. He is a Director on the Board of ACC and several other reputed companies. He joined the board in July 2008.

Onne van der Weijde, Managing Director

A Dutch national, Mr. Onne joined Holcim in the year 1996 and after holding various positions, he was appointed Director and General Manager for Holcim (India) Pvt. Ltd. in March 2005. He was the CFO of ACC between 2006 and 2008. He has a lot of experience of the cement industry. He joined the Board in January 2009.

 Executive Management Team 

Mr. Onne van der Weijde, Managing Director Mr. B.L. Taparia, Company Secretary & Head Corporate Services Mr. Sanjeev Churiwala, CFO Mr. Ghassan Broummana, Head - Technical Support Services Mr. S.N. Toshniwal - Business Head (East) Mr. J.C. Toshniwal - Business Head (North) Mr. Ajay Kapur - Business Head (West & South) Ms. Meenakshi Narain - Joint President (HR) Mr. Shakti Arora, Head - Central Purchase Officer

CONSOLIDATED BALANCE SHEET as at 31st December, 2008

31.12.2008 31.122007

Rs. in crores Rs. in Crore Rs..in crores SOURCES OF FUNDSShareholders' FundsShare Capital ................................................................. A 304.52 304.48Employee Stock Option Outstanding (Refer Note 9) ...... 0.34 0.38Reserves and Surplus ................................................. B 5,366.54 4,554.40 5,671.40 4,859.26Minority Interest ................................................................. – 0.42 Loan FundsSecured Loans ................................................................C 100.00 108.28Unsecured Loans ............................................................D 188.67 230.42 288.67 338.70 Deferred Tax Liability, net (Refer Note 7) .................... 380.75 378.38 TOTAL ............................... 6,340.82 5,576.76APPLICATION OF FUNDSFixed Assets .................................................................... EGross Block ...................................................................... 5,710.11 5,251.83Less: Depreciation ............................................................. 2,512.87 2,273.98Net Block .......................................................................... 3,197.24 2,977.85Capital Work-in-Progress (Refer Note 10) ........................... 1,560.76 510.04 4,758.00 3,487.89Advances against capital expenditure ................................. 386.47 186.86 5,144.47 3,674.75Investments ...................................................................... F 327.82 1,480.36Current Assets, Loans and AdvancesInventories ........................................................................ G 939.77 586.27Sundry Debtors ................................................................. H 224.60 135.38Cash and Bank Balances ................................................... I 852.13 643.37

Other Current Assets ......................................................... J 23.41 13.52Loans and Advances ......................................................... K 299.67 205.18 2,339.58 1583 .72 Less: Current Liabilities and Provisions ......................... LCurrent Liabilities ...................................................... 1,004.77 678.25Provisions ................................................................. 470.56 490.04 1,475.33 1,168.29Net Current Assets ............................................................. 864.25 415.43Miscellaneous Expenditure(to the extent not written off or adjusted) .............................. M 4.28 6.22TOTAL ........................................ 6,340.82 5,576.76

CONSOLIDATED BALANCE SHEETas at 31st December, 2009

31.12.2009 31.12.2008 Schedule Rs. in Crores RS.in Crores Rs. in CroresSOURCES OF FUNDS

Shareholders' FundsShare Capital ................................................................A 304.74 304.52Employee Stock Option Outstanding (Refer Note 10) . 0.24 0.34Reserves and Surplus ...................................................B 6,162.92 5,366.54 6,467.90 5,671.40Loan FundsSecured Loans ............................................................... 100.00 100.00Unsecured Loans ........................................................... 65.70 188.67

165.70 288.67Deferred Tax Liability, net (Refer Note 7) ...................... 485.84 380.75 TOTAL ................................ 7,119.44 6,340.82APPLICATION OF FUNDSFixed Assets ..................................................................EGross Block ...................................................................... 6,227.30 5,710.11Less: Depreciation ........................................................... 2,783.06 2,512.87Net Block .......................................................................... 3,444.24 3,197.24Capital Work-in-Progress (Refer Note 16) ....................... 2,564.83 1,560.76 6,009.07 4,758.00Advances against capital expenditure .............................. 149.61 386.47 6,158.68 5,144.47Investments ....................................................................F 722.44 327.82Current Assets, Loans and AdvancesInventories ......................................................................G 683.24 938.74Sundry Debtors ...............................................................H 152.20 224.60Cash and Bank Balances ................................................I 880.90 852.13Other Current Assets ......................................................J 10.17 24.44Loans and Advances ...................................................... 252.82 299.67 1,979.33 2,339.58 Less: Current Liabilities and Provisions .................... LCurrent Liabilities .............................................................. 1,069.68 1,004.77 Provisions ........................................................................ 674.04 470.56 1,743.72 1,475.33Net Current Assets ......................................................... 235.61 864.25Miscellaneous Expenditure (to the extent not written off or adjusted)Quarry / Mines Development Expenses ........................... 2.71 4.28TOTAL ........................................ 7,119.44 6,340.82

CONSOLIDATED BALANCE SHEET

AS AT 31ST DECEMBER, 2010

Schedule Rs. in Crores As at

31.12.2010

Rs. in Crores

As at

31.12.2009

Rs. in Crores

SOURCES OF FUNDS

Shareholders’ Funds

Share

Capital ..................................

..............................................

............

A 305.97 304.74

Share Application Money, pending

allotment (Share in Joint

Venture) ...........

0.09 -

Employee Stock Option Outstanding

(Refer Note 10(e)) ...............................

1.34 0.24

Reserves and

Surplus .................................

..............................................

..

B 7,019.15 6,162.92

7,326.55 6,467.90

Loan Funds

Secured

Loans ....................................

..............................................

........

C - 100.00

Unsecured

Loans ....................................

..............................................

.....

D 65.03 65.70

65.03 165.70

Deferred Tax Liability, net (Refer

Note

7) .......................................................

530.88 485.84

TOTAL ....................................................

................

7,922.46 7,119.44

APPLICATION OF FUNDS

Fixed Assets

.................................................................................................

E

...

Gross

Block ......................................................

..........................................

8,781.99 6,227.30

Less:

Depreciation ..........................................

...........................................

3,150.06 2,783.06

Net

Block ......................................................

.............................................

5,631.93 3,444.24

Capital Work in Progress (Refer Note

14) ....................................................

803.66 2,564.83

Share in Joint

Venture ..................................................

..............................

0.02 -

6,435.61 6,009.07

Advances against capital

expenditure ...........................................

..........

127.05 149.61

6,562.66 6,158.68

Investments

..............................................

..............................................

........

F 621.11 722.44

Current Assets, Loans and Advances

Inventories ............................

..............................................

.......................

G 901.86 683.24

Sundry

Debtors .................................

..............................................

...........

H 128.18 152.20

Cash and Bank

Balances ...............................

...........................................

I 1,748.39 880.90

Other Current

Assets ...................................

..............................................

.

J 16.57 10.17

Loans and

Advances ..............................

..............................................

....

K 340.32 252.82

3,135.32 1,979.33

Less: Current Liabilities and

Provisions ..............................................................

L

Current

Liabilities ...............................................

.........................................

1,300.52 1,069.68

Provisions 1,096.57 674.04

2,397.09 1,743.72

Net Current Assets

...............................................................

.....................

738.23 235.61

Miscellaneous Expenditure 0.46

2.71

Total 7,922.46

7,119.44