1. SUMMER TRAINING REPORT SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF POST GRADUATE DEGREE IN MANAGEMENTSUBMITTED BY:AMAN KESHARWANI MBA- (2012-2014) Enrollment No. : A30101912114 INDUSTRY GUIDE MR. AMIT GUPTA DEPUTY MANAGER AMBUJA CEMENT LTD BHATAPARA UNIT (CG)FACULTY GUIDE MS. APARAJITA DASGUPTA

2. STUDY OF FINANCIAL TOOLS & MARKETING STRATEGIES AT AMBUJA CEMENT LTD 3. CONTENTS Introduction of cement industry. Objectives of study. History & development of Ambuja cement limited. Company profile. SWOT Analysis. Learning during the internship Experience.a) Analysis through Financial Tools. b) Marketing strategies. Marketing Research. Research Methodology. Research Designs. Limitation of The Study. Suggestion. Conclusion. Bibliography 4. INTRODUCTION OF CEMENT INDUSTRY Cement is one of the core industries which plays a vital role in the growth and expansion of a nation. It is basically a mixture of compounds, consisting mainly of silicates and aluminates of calcium, formed out of calcium oxide, silica, aluminum oxide and iron oxide. The demand for cement depends primarily on the pace of activities in the business, financial, real estate and infrastructure sectors of the economy. Cement is considered preferred building material and is used worldwidefor all construction works such as housing and industrial construction, as well as for creation of infrastructures like ports, roads, power plants, etc. Indian cement industry is globally competitive because the industry has witnessed healthy trends such as cost control and continuous technology up gradation. 5. OBJECTIVES OF STUDY Study of the working capital management is important because unless the working capital is managed effectively, monitored effectively planed properly and reviewed periodically at regular intervals to remove bottlenecks, if any, the company cant earn profits and increase its turnover. To study the working capital management of Ambuja Cements Ltd., Bhatapara. To study the optimum level of current assets & Current liabilities of the company. To study the working capital components such as Receivable accounts, Cash management,Inventory position. To study the way & means of working capital finance of the Ambuja Cements Ltd.,Bhatapara To estimate the working capital requirement of Ambuja Cements Ltd., Bhatapara. To study the Operating & Cash cycle of the company. 6. HISTORY AND DEVELOPMENT OF ACL Ambuja Cements Ltd. (ACL) is one of the leading cement manufacturingcompanies in India. The Company, initially called Ambuja Cements Ltd., was founded by Narotam Sekhsaria in 1983 with a partner, Suresh Neotia. Sekhsarias 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 50% equity in ACL. The Company is currently known as Ambuja Cements Ltd. All the primary procedure was completed land acquisition procedures were completed in early May 1983. take the possession of the land and legal proceeding by the villagers compelled the management planned project and management decided to locate the project at village RAWAN, BHATAPARA in RAIPUR District. 7. BASIC INFORMATION OF THE COMPANY NAME & ADDRESS OF THE UNIT:Ambuja Cement LtdBhatapara, P.O. Rawan, Distt: Balod BazarChhattisgarh 493 332 DIVISONS:Ambuja Cements Ltd. Ambuja Cement Ltd. Line-1 Ambuja Cement Ltd. Line-2 YEAR OF ESTABLISHMENT: 11- February 1983. INVESTMENT:February- 1983- Rs. 86 crores. REGISTERD OFFICE: P.O. Ambujanagar,Taluka: Kodinar, Dist: Junagadh, Gujarat: 362715 8. CORPORATE OFFICE: Elegant Business Park,MIDC Cross Road B Office Andheri kurla RoadAndheri (E) Mumbai- 400 021. MISSION OF THE COMPANY:To strive for an environment beyond Compliance. To adopt environmentally sound technologies and management practices for optimum utilization and conservation of natural resources. VISION OF THE COMPANY:Their people practice a simple philosophy. Give a man orders and hell Do the task reasonably well. But let him set his own targets, Give him freedom and authority, And his task becomes A personal mission: I CAN. 9. SWOT ANALYSIS STRENGTH Lower energy cost due to imported calorific value coal and use of non- conventional fuels. Lower transportation cast due to increased transport through railway. Very high brand identity. Excellent innovation engineering and technological skill useful for operating excellence. Very less dependent on government for coal and power. Favorable location having raw material site at a distance of 1 km near the production line.WEAKNESS Many competitors in cement industry. High transportation cast due to increased transport through sea router for bulk shipping. 10. OPPORTUNITY Higher production of agricultural sector & service sector may result into higherpurchasing power, which will increase demand. Stability of Government may result into higher FDI inflow which will give rise to MNCs entry in India, which would require operations in India. Thus large infrastructure projects and related requirements of housing and accommodation will boost cement sales. New product usage of RMC (Ready Mix Concrete) would the demand.THREATS Threats from the economic cycles. i.e. Recession or growth. Change in Government policies in term of coal, diesel, raw material andtransport. Exchange rate fluctuation having direct effect on bottom line as well as on export 11. LEARNING DURING THE INTERNSHIP EXPERIENCE FINANCE DEPARTMENTIt is said, Finance is the arms and legs of business . A potential and capable management can run the department very effectively. In finance department each and every decision should be taken in such way that every pie of money should be utilized in adequate manner. In ACL the finance department is headed by the vice president, under him there are two groups of executives, one group of executives working at corporate office, Bombay. The second group of the executives working at side and is headed by the senior manager. Under him there are two sectional managers namely costing manager and account manager. Under those managers there is Deputy Manager, Assistant manager, Account Officer, Account assistants who are responsible to their respective levels. 12. FINANCIAL PLANNING Financial Planning means planning of finance. In the planning of finance not onlyplanning is done for spending the money but also planning is done for finding and evaluating source of finance. As per Government rules and regulations ACL has the financial year from July to June and on that basis at the year, Balance sheet is prepared and net profit is found out. Sources of funds in ACL are: 1. INTERNAL SOURCE: Equity sharesReserves & surplus. 2. EXTERNAL SOURCE: Secured Loans Unsecured Loans DepositsDebentures. 13. CAPITAL STRUCTURE The capital structure is made of debt and equity securities, which compromises afirms finance of its assets. It is permanent financing of firm, represented by long terms debt plus preferred stock plus net worth. Capital Structure of ACL is as:in crores...(A) Share capital Authorized Capital: 250, 00, 00,000 Equity shares of Rs. 2 each 15, 00, 00,000 Preference shares of Rs. 10 each500.00 150.00650.00308.51308.51308.44308.44Issued Capital: 1,542,510,956 Equity shares of Rs. 2 each Subscribed Capital: 1,542,184,436 Equity shares of Rs.2 each TOTAL308.44 14. (B) Reserve & Surplus: General reserves6,204.94Share premium8,496.62Capital reserve130.71Capital Redemption Reserve9.93Subsidies5.02Debenture Redemption Reserve25.00Income & Exp. A/c664.96TOTAL15537.18(C) Loans & Funds Secured loan100.00Unsecured Loan34.63TOTAL134.63 15. LISTING SHARESNAME OF THE STOCK EXCHANGESTOCK CODE1. The stock exchange, Ahmedabad202102. The stock exchange, Mumbai5004253. National stock exchange of India Ltd.AMBUJACEM4. The Calcutta stock exchange Association Ltd.585. The Delhi Association Ltd.07021stockexchange DISTRIBUTION OF SHARE HOLDINGThe shareholding distribution of equity shares as on 31st December, 2012 is as below: SHARE TRANSFER SYSTEMShare send for transfer in physical form are registered by ACLs registered and share transfer agents in about 15 to 20 days from the day of receipt of the documents, provided the documents are found in order. Share under objection are returned within two weeks. The transfer committee meets generally on a weekly basis to consider the transfer proposal. 16. DISTRIBUTION OF SHARE HOLDING NO.CATEGORYOFSHARES Body Corporate (1.40%)21332630Foreign Promoters (45.64%)69539377Foreign investors (including FIIs )(22.91%)34905409OCB, NRIs (1.34%)20416097Mutual Funds, Banks & Institutions25740059(16.89%) GDR Holders (1.90%)28952518Indian Promoters (0.79%)1208190913907991Other (9.13%) TOTAL (100%)15237111380 17. THE SHAREHOLDING DISTRIBUTION OF EQUITY SHARES AS ON 31ST DECEMBER, 2012 IS AS BELOW : SHARE HOLDING PATTERN:NO. OFNO. OFPERCENTAGESHARE HOLDESSHARSOF SHAREHOLDIGLess than 5010378624968610.1651 to 1002868925301010.16101 to 5003220581711070.53501 to 1000847166679090.431,001 to 5,00016037425503872.765,001 to 10,0003212232194731.5110,001 to 50,0001881352043192.2850,001 to 1,00,0001261,00,001 to 5,00,000224500550953.255,00,001 & above159136209221588.32Total1947901542184436100.00NO. OF EQUITY SHARES91961590.60 18. MANAGEMENT OF FIXED ASSETS: Fixed assets are the tangible assets, which cannot be turned into cash on shortperiod of time. Management of fixed assets is the most important decision in the field of finance for any organization and especially in cement industry, which has its most of investment in fixed assets. In ACL budget committee prepares a separate budget for every department anddoes continuous comparison. Company having the investment of 5,861.93 crores in fixed assets.Capitalization: Over Capitalization Under Capitalization ACL is under capitalization this reflect the progressive and healthy stock of the company. 19. LEVERAGE ANALYSIS The employment of an asset or source of funds for which the firm has to pay afixed cost of fixed return may be termed as leverage. The leverage associated with investment (asset acquisition) activities is referred to as operating leverage, while leverage associated with financing activities is called financial leverage. Operating leverage is determined by the relationship between the firms salesrevenues and its earnings before interest and taxes. Financial leverage represents the relationship between the firms earnings before interest and taxes and the earnings available for ordinary shareholders. 20. DATA FOR LEVERAGE ANALYSIS ParticularsYear 2012 (12 months) (Rs. In crores)Net Sales7721.42Less: Variable Cost1. Manufacturing Expense2. Excise Duty3. Administrative and selling expense2286.6436.171524.67Contribution3847.48 3873.94Less: Fixed Cost1. Administrative and Selling Expense2. Depreciation and Amortization1751.22296.99EBIT1825.73Less: Interest22.72PBT1803.01Less: Provision for current tax Provision for deferred tax PAT2048.21584.93 -584.93 1218.080 21. Degree of Operating Leverage Contribution / EBIT3873.94 / 1825.73 2.12 Degree of Financial Leverage EBIT / PBT=1825.73/1803.01 1.01 22. Degree of Combined Leverage Contribution / PBT3873.94 /1803.01 2.15 23. MARKETING DEPARTMENT Marketing management is the process of planning and executing the conceptionpricing promotion and distribution of ideas goods and service to create exchange that satisfy individuals and organization goal. Marketing management can be practices in any market. AMBUJA CEMENT LIMITED has a separate department of marketing theirproduct in market its all the products are sale in open market so they have needle Very much. Their marketing department is well established. Because in open market, there are many company to sell each their product. They have international trade so they have also some many expert of this type of trade. The function of marketing department is done by Chairman, Vice-chairman,managing director and marketing expert in this firm. 24. MARKETING SEGMENTATION A company, which decides to operate from some part of market normally, cannot serve allthe customers in market. To maximum utilization of available market and resources to the sales the company adopts the market segmentation policy. ACL adopts market segmentation on following basis. Trade segment: It is the biggest segment, which covers 60% of ACL market. It is the segment of the retailers where brand identification, quality of product and market penetration play very important role. Builder: It is the second largest segment and very effective segment in cement marketing of builders. Builders generally purchase in large quality so price and credit policy plays vital for this segment. Government & institution:Government & institution agencies are the largest consumer contribution about 25-30% of all India cement consumption. 25. PRICING POLICY It is not wrong to say that pricing policy is the most important and crucial decision in thearea of marketing organization. The revenues from sales depend mainly on the level of price. Price is the factor which gives life to economic system. The entire firm has its own pricing policy in accordance with its objective. When it comes to setting up the price, it is the most crucial decision. Price decides the market share and profitability. So any mistake in deciding price will affect too much to unit. ACL Follows two types of pricing policy. A. Cost oriented pricing B. Competition oriented pricingIn this day the price of product is Rs. 250 per bag. They give 30 days of credit facility to reputed agency and 2% of cash discount if the payment is made with in one week. 26. CHANNEL OF DISTRIBUTION After production, the next problem is faced by a producer is that of selling distributionbecause production is made to satisfy the needs of the costumers, so it must reach to the costumers for whom it is made. This, a way through which goods flow the producer to the consumer is called channel of the distribution. The channel of distribution of ACL is as under. Manufacture Direct consumer Regional Sales officer Sub Officer Dealer Consumer Sub dealer ConsumerACL directly to the consumer sales cement only when the order is in huge quantity. These consumers include Government public sector organization, private organization, etc. 27. SALES PROMOTION Sale promotion is an activity which aims at sales expansion. Its basic object is to increasesales through special efforts, proper selection of them provision of their training attempts to improve relation with distributors and consumer advertising etc. are the activities which essential aim at increasing sales promotion refer to all activities for enhancing the total sale and demand. So in the area of modernization sales promotion of product is required. ACL adopts various types of sales promotion tools like discounts, gifts, and some other incentives and sometimes company send their dealers and distributors on tour. ACL has adopted 3 levels of sales promotion as under.A. At a Dealer level B. At a Salesman level C. At a Consumer level Thus we can say that sales promotion is not expenditure; it is an investment which provides a lot of rich dividend. Thus it is integral part of manufacture in efforts. 28. MARKETING RESEARCH Marketing is the systematic gathering of information, recording and analysis ofdata, to problem concern with market. Marketing Research is basis thing needed for the company. Without marketing research the company not able to known which pattern, size, colors of products is demanded by the consumers about its product. By developing a good research plan company knows that how its product sold in market, so that is essential function. AMBUJA CEMENT LIMITED has an open market to sale their products inmarket. So they have needed to research the market. They have a special marketing department for all this tools to sales promotion. So this firms sale is more in the market. 29. RESEARCH METHODOLOGY Working capital refers to that part of the firms capital which is required forfinancing short term or current assets such as cash, marketable securities, debtors and inventories. Funds, thus invested in current assets keep revolving fast and are being constantly converted in to cash and these cash flows out again in exchange other current assets. Hence, it is also known as revolving or circulating capital or short term capital. The basic goal of working capital management is to manage the current assetsand current liabilities of a firm in such a way that a satisfactory level of working capital is maintained, i.e., it is neither inadequate nor excessive. This is so because both inadequate as well as excessive working capital positions are bad for any business. Inadequacy of working capital may lead the firm to insolvency and excessive working capital implies idle funds which earn no profits for the business. 30. STATEMENT OF THE PROBLEM A study of working capital is of major importance to internal and externalanalyst because of its close relationship with the current day to day operations of a business. Now-a-days many companies are not performing well. Major reason for this is underutilization of capacity and inefficiency in the technical and financial management. Efficient management of working capital is the key to the success of everybusiness. In this study, an effort is made to analyze the working capital management and its components in Ambuja Cements Limited. Hence the problem is stated as A study to assess the working capital management of The Ambuja Cements Ltd, Bhatapara Unit. 31. RESEARCH DISIGNS This is the most important aspect of research methodology. There are variousmethods of designing the research. Though, I have taken Working Capital analysis of Ambuja Cement Ltd. The research is undertaken for the measure the strengths and weaknesses of the company. Thus, the research is exploratory in the natureSOURCE OF DATA Secondary dataSecondary data were obtained from the internal records of the AMBUJA CEMENT LTD. from the published annual reports of the company, Journal and Magazines and also other basic related to them analysis of financial performance. Method to assess the companys method of observation of the work in finance departments in followed 32. LIMITATIONS OF THE STUDY The limitations of the study are as follows : The financial statements contain only historical data and would not necessarilyreflect the future, The reliability and accuracy of calculations and interpretation depends verymuch on the Information supplied by the company, Lack of professional knowledge of the researcher, In this short period of time, the research could not go through all aspects ofworking capital, Authorities were reluctant to reveal full information about the working of thecompany. 33. SUGGESTIONS companys current assets has reduced by Rs. 19430.16 lakh due to reduction in theinvestment in inventory & increase investment in sundry debtors. Company has also pays its creditors of Rs. 15184050.55 lakh. and reduced it. And also increased its provisions. we can see that company has reduces its overall investment of Net Working Capital by 30.04%we can see that company has reduced its investment in C.A by 44.33% due to increasing debtors & reduction in inventory compared to previous year. Looking to the total composition of current assets in percentage form in table 4. its clearthat there is a sharp increase in sundry debtors by 5.44% & increasing loan & advances by 4.06% which lead company from his operation motive and a sharp decrease in investment in inventory by 9.47%. we can see that company has concentrated on paying off his creditors & increasedprovision regarding governments rules & other short term provisions. we can say that company has concentrated on the operating cycle & has reduced itsoperating cycle days by 26 days which shows efficient management of the working capital in the company. we can say that there is a sharp fall in the inventory turnover ratio. This is not a favorable situation as this ratio helps company to achieve high sales by investing minimum in W.C but here there is a sharp fall. 34. Company is managing the credit very well. But still company has to focus more on thesales part as sales has declined by 5.76%. We can say that the current asset ratio has increased which reflect w good position for thecompany from external point of view, but of we look to the investment in inventory which has decline by 9% which is harmful to the cahflow from the operations as sales in current year has declined over previous year. The current asset ratio which is in favor of the company as compared to the previous yearthe position of the company has improved. The good position of the company to the previous year as both the ratio has improvedwhich shows the most liquidity position of the company There is no improvement in the average collection period and this shows that managementis less focused here. The collection period has to be decreased otherwise it will affect companys current & liquidity position in future. Company has reduced his cash holding amount but the same was invested in debtors.Company is not looking to the opportunity which is available in the market for the short term investment and also company is not investing in the operations. The cash cycle has reduced and it comes down to 31 days which shows the efficientmanagement of the managers. The inventory holding period has also reduced by 1 day and the operation has started fast.But still these holding period should be focused and try it to reduce, 35. CONCLUSION In this study an attempt has been made to analyze the working capital position of AmbujaCements Ltd. , Bhatapara. The study shows that the overall performance of the company is not satisfactory. Though the company is a profit making organization, its profit is not up to the mark with respect to the asset employed in the organization. Since the working capital amount shows a negative To positive trend it reveals that the company is not in a position to meet its day to day obligations. The analysis and interpretation of various data relating to working capital management helped to reach into a conclusion that the efficiency of the Working capital management is not adequate in 2012 and it shows a negative balance. But this cannot be blamed, as due to recession period in Infrastructure in India & at globe The overall success of any company depends upon the working capital position. So itshould be handled properly because it shows the efficiency and financial strength of the company. Therefore the company should adhere to strict measures in every sphere of its activities to bring the company back to sufficient working capital position and improve its financial performance 36. BIBLOGRAPHY Companys internal reports Khan M.Y & Jain P.K Financial Management, 4th edition (2004) , Tata Mc GrawPublishing Company Limited www.workingcapitalmanagement.com 37. THANK YOU