DEPARTMENT OF MANAGEMENT (LSM)

TERM PAPER

OF

FINANCIAL MANAGEMENT

ON

INDIA CEMENTS LTD

SUBMITTED TO: SUBMITTED BY:

MS. ASHU KAKKAR SHUJA QAMMER

REG NO: 10904442
ROLL NO: 03
SECTION: S1906
MBA (IT)
2ND SEM.
 ACKNOWLEDGEMENT

The most precious moments are those when we get an opportunity to remember
and thank everyone who has in some way or the other motivated and
facilitated us to achieve our goals.
First of all I thank to GOD ALMIGHTY ALLAH for giving me power to pen
down the term paper in its present shape. I thank the entire teaching staff
especially MS. ASHU KAKKAR Lect. LSM for sharing his valuable
knowledge with me & for providing his able guidance and support. I also
thank to my classmate who every time helped me out and encouraged me
for carrying out the task.
I fall short of words to thank my family, who stood beside me while completion
of my task.

SHUJA QAMMER
 COMPANY PROFILE

The India Cements Ltd was established in 1946 and the first plant was setup at
Sankarnagar in Tamilnadu in 1949 . Since then it has grown in stature to seven
plants spread over Tamilnadu and Andhra Pradesh . The capacities as on March
2002 have increased multi fold to 9 million tons per annum.

Company Highlights

• The Company is the largest producer of cement in South India.

• The Company's plants are well spread with three in Tamilnadu and four
in Andhra Pradesh which cater to all major markets in South India and
Maharashtra.
• The Company is the market leader with a market share of 28% in the
South. It aims to achieve a 35% market share in the near future. The
Company has access to huge limestone resources and plans to expand
capacity by de-bottlenecking and optimisation of existing plants as well
as by acquisitions.
• The Company has a strong distribution network with over 10,000
stockists of whom 25% are dedicated.
• The Company has well established brands- Sankar Super Power,
Coromandel Super Power and Raasi Super Power.
• Regional offices in all southern states and Maharashtra
offices/representative in every district.

Technical cell to cater to all your queries/doubts tech.cell@indiacements.co.in

 HISTORY OF THE COMPANY
1946

- The Company was incorporated on 21st February, at Chennai. The Company

runs two cement factories, one at Sankarnagar in the Nellai Kattabomman
District and the other at Sankaridurg in the Salem District of Tamil Nadu State.
It also runs a foundry at Nadambakkam near Chennai City.

1956

- 1,60,000 Right Equity shares issued at par in the proportion 4 Shares for
every Rs 175 paid-up Equity capital.

- Defd. shares converted into Equity shares of Rs 5 each in prop. 1:1,

Dividend rate of Pref. shares altered to 7.5%.

1958

- In August, Equity shares of Rs 25 each subdivided. 7,29,650 Rights Equity

shares then issued in prop. 1:3.

1959

- In December, 3,500 Pref. shares and 30,350 Equity shares allotted

To Essen Private, Ltd., and Managing Agents. At the same time, 40,000
No. of Equity shares allotted to the directors of the Managing Agents.
In Nov. 1960, 15,00,000 Right Equity shares issued at par in prop. 1:2.

1984

- 33,350-7 1/2% cumulative preference shares of Rs 100 each were converted

into 13 1/2% secured redeemable non-convertible debentures of Rs 100 each
from 1st April.

- A crushing-cum-screening plant was installed at Sankarnagar. The quarries

at the Sankari factory were modernised and the third captive DG set was
installed at Sankarnagar plant.

- In order to convert the Sankarnagar plant to a more fuel efficient process, the
Company accepted the proposal of Blue Circle Industries p.l.c., U.K., for
setting up a 3,000 tonnes per day precalciner dry process kiln adopting the
latest technology.

- On the 20th February, the Company allotted 33,350-15% secured redeemable

non-convertible debentures of Rs 100 each in conversion of 33,350-7 1/2%
cumulative preference shares of Rs 100 each. The debentures are redeemable
on or after 7 years but not later than 10 years from the date of allotment.

- Also, 6,00,000-15% secured redeemable non-convertible debentures Of Rs

100 each were privately placed with LIC, GIC and its subsidiaries To be
redeemed in 5 equal instalments commencing from the end of the 5th year and
ending with the 9th year from the date of allotment at a premium of 5% at the
end of the 7th year.

- 10,00,000 - 20% non-Convertible redeemable debentures of Rs 100 Each

were privately placed with LIC, UTI and GIC.

1989

- In the last quarter of the year as a measure of forward integration, the

Company entered the business of real estate and property development.

1990

- The company was granted a licence by the Ship Acquisition Licensing

Committee for purchase of 4 dry bulk cargo vessels.

- On 29th November, after obtaining necessary approvals, the Company

took possession of the cement division of Coromandel Fertilisers, Ltd.,
in Chilmakur village, Cuddapah district, A.P.

- In order to part finance the modernisation programme at Sankarnagar, the

Company offered during February/March, 10,29,000 - 12.5 % secured fully
convertible debentures of Rs 125 each. Out of the total issue, 9,80,000
debentures were offered to the equity shareholders of the Company in the
proportion of 1 debenture for every 5 equity shares Held and 49,000
debentures were offered to the employees of the Company (Including the
retention of oversubscription, a total of 11,71,660 debentures were allotted).

1996
 - The Company undertook to set up a new energy efficient cement mill At its
Sankarnagar plant.

- During the year the Shipping Division had to brave rough weather With
freight rates continually falling and offreightment contracts being hard to come
by.

1997

- As part of its ongoing diversification activities, the Rs.900-crore India

Cements Ltd (ICL) is setting up a sugar manufacturing facility, ICL Sugars
Ltd, in Mandya district of Karnataka.

- India Cements Ltd. through its group companies ICL Securities Ltd (ICLS)
and ICL Financial Services Ltd (ICLFS) had acquired about 40 Per cent of the
paid-up capital of Aruna Sugars Finance Ltd from the Aruna Sugars and
Enterprises Ltd (ASEL) for a consideration of Rs.6.08 crores.

- India Cement has emerged as a winner in the takeover race after Gujarat
Ambuja Cements Ltd, the only other company in the race, Backed out at the
last stage alleging foul play in the takeover process.

- India Cements Ltd (ICL) has set its sights on Raasi Cement. It is preparing
to mount a takeover bid, which if successful, would give the Madras-based
ICL, country's second-largest cement capacity after ACC.

2000

- The Company in a bid to further reinforce its leadership position In the

region, has entered into a marketing tie-up with Andhra Pradesh (AP)-based 0.6
million tonne Panyam Cement.

- The Company has entered into an agreement with Panyam Cement and
Mineral Industries Ltd for distribution and marketing of cement.

- Cennai-based Indian Cements is learnt to have held talks, or is in the process

of holding talks, with at least two multinational cement companies -- Blue
Circle and Cemex -- to set up joint venture company.

- The Cement major India Cements has launched a comprehensive portal

On home-making (homztoday.com).
2002

-Board decided to sell the 39% equity shares of Sri Vishnu Cement and
has signed a Share Purchase Agreement with Zuari Cement Ltd.

-company enters into an agreement with Citibank, N A.

-IDBI appoints Mr J Jayaraman as the Director on the Board.

-Negotiates with financial Institutions led by IDBI for its debt restructuring.

-The Board of India Cements scraps the resolution to pay 11.5% preference
dividend.

2003

-The Board co-opted Mr N D Pinge as the Nominee Director in place of

Mr N Biswas who ceased to be the Director consequent to withdrawal of
nomination by ICICI Bank Ltd.

-It is restructuring its debt under Corporate Debt Restructuring Systems and
the details of the restructuring package which includes VRS, sale of assets,
restructring of debt including working capital facilities. The restructuriing
proposal provides for various exit options for secured and unsecured lenders
with different yield and maturity. The package is subjected to annual review
based on which it is modified.

-Appoints Mr. M V Mohammad Meeran as the Director on the Board of the

company.

2004

-The company through its Special Purpose vehicle M/s Coromandel Electric Co
Ltd has commissioned a (gas based) captive power plant at Ramanathapuram
for a capacity of 17.4 MW and the same has started supplying power from the
month of November 2004
2005
-The Company has successfully completed an equity issue in the international
market during October 2005 by issuing 25,613,796 Global Depositary Shares
(GDSs) at USD 4.3226 per GDS, (each GDS representing 2 underlying equity
shares of Rs 10 each) and raised an amount of Rs 497 crores including a
premium of Rs 446 crores.

2006

-India Cements signs MOU with Government of Himachalpradesh

-Sri T Dulip Singh, one of the Director on the Board of the Directors, expired
on November 19, 2006.

-The Company has issued unsecured Zero Coupon Convertible Bonds due
2011 (FCCBs) for US Million to investors outside India at an initial
conversion price of Rs.305.57 per share.

2008
-The Company has revived its shipping business with the purchase of
two ships (dry bulk carriers) with a total capacity of 79843 DWT.
-The Company has successfully bid for the Chennai franchise of the
DLF-IPL 20/20 Cricket Tournament –“Chennai Super Kings”.
-The Company has completed and commenced commercial production of one
million tonne grinding plant at Chennai.
2009
-The Company has completed and commenced commercial production of one
million tonne grinding plant at Parli (Maharashtra).
-The Company’s subsidiary, namely, Trishul Concrete Produts Limited has
completed and commenced commercial production of one lakh Cu.M ready
mix concrete Plant at Hyderabad (Andhra Pradesh).
-The II line of 1.2 MT at Malkapur was commenced operations from March
2009
-The upgraded capacity of kiln I to 3000 TPD (1700 TPD) at Vishnupuram
started functioning from April 2009.
 MANAGEMENT

The India Cements Ltd is a professionally managed company headed by

Mr.N.Srinivasan, Vice Chairman and Managing Director. The day-today affairs
of the company are managed by him assisted by key personnel in each
functional area. The Board of Directors are ultimately responsible for the
management of the affairs of the company.

Board of Directors:

Shri.N.Srinivasan Vice Chairman & Managing Director

Mrs.Chitra Srinivasan Director
Ms.Rupa Gurunath Whole Time Director
Shri.B.S.Adityan Director
Shri.R.K.Das Director
Shri.N.Srinivasan Director
Shri.N.R.Krishnan Director
Shri.A.Sankarakrishnan Director
Shri.Arun Datta Director
Shri.V.Manickam Representing Life Insurance Corporation of India
Shri.K.P.Nair Nominee of IDBI Bank Ltd
Representing Housing & Urban Development
Shri.K.Subramanian
Corporation Ltd
Auditors:
Messrs. Brahmayya & Co.,
Messrs. P.S. Subramania Iyer & Co.,
Chartered Accountants,Chennai.

Name of the associate /subsidiary companies

Subsidiary
Industrial Chemicals & Monomers Ltd
Company
 Subsidiary
ICL Securities Ltd
Company
Subsidiary
ICL Financial Services Ltd
Company
Subsidiary
ICL International Ltd
Company
Subsidiary
Trishul Concrete Products Ltd
Company
Subsidiary
Indo Zinc Ltd
Company
PT.Coromandel Minerals Subsidiary
Resourses,Jakarta,Indonesia Company
Coromandel Electric Company Ltd Associate Company
Unique Receivable Management Private Limited Associate Company
Coromandel Sugars Ltd Associate Company
India Cements Capital Ltd Associate Company
Raasi Cement Ltd Associate Company
Coromandel Travels Limited Associate Company
 VISION AND MISSION
VISION

The new millennium will bring with it new challenges and greater opportunities.
The 21st century will most certainly see the unfolding of a period of
extraordinary possibilities and incredible developments bringing about more
fundamental changes in the global economy than the last 200 years. The
successful corporates will be those who equip themselves to meet the challenges
and convert opportunities into winning strategies. If we are to keep pace, it is
imperative that we learn to successfully tread the global pathway.

In this journey, clarity of vision, a readiness to cultivate a global mindset,

effectiveness, harnessing of human resources to enhance job and knowledge
skills of employees, a strong accent on R & D and innovation and a move away
from selling, to innovative marketing in recognition of the fact that
the Customer is truly King, are some of the strategies that will help corporates
to survive and succeed.

However it must be remembered that it is not enough to adopt a set of values

and just leave them in place. In order to move with the changing times, values
and ideas must be ceaselessly re-examined so as to ensure that they are in tune
with the organisation's goals.

The India Cements Limited is committed to contribute its might in making the
21st century an "Indian Century".

MISSION :

Aiming High:

We should be one of the largest Cement Companies in the Country. Our growth
in size will be through continuous review of potentials of the existing
manufacturing resources, strategic acquisitions and expansions

Core Competency:

Cement will be our mainstay. However, we shall venture into related fields
which afford purposeful synergy.

Quality Quest:

Product quality, consistency and customer service will be pursued as an act of

faith throughout the organisation.
Modern Mindset:

In an environment which is intensively competitive, we shall be futuristic in

outlook and effective in management.

Pursuit Of Excellence:

The growing size of our business permit us to have an R & D set up of our own.
We shall continuously challenge methods, systems, operating parameters. We
shall constantly review our manufacturing systems to upgrade
quality and value of products.

Human Resources:

We consider people as our valuable Assets. Our HRD Systems will be totally
proactive and tuned to provide excellent working environment and transparent
organisational culture for creativity, innovation and participation.

Value Addition:

ICL will continuously strive to enhance its value to its customers, ShareHolders
and Employees.
 COMPANY POSITION RELATIVE TO INDUSTRY

) When we compare the price earining ratio of India cements Ltd which is
10.11. it is higher than industry which shows 10.01

) Besides the said parameter, company position in the industry is not so healthy
when we compare it with the biggest gaint o f cement industry i.e ACC Ltd.

) Companies position as compared to ambuja cements is at par or we can say

that it is excelling the later company which is green signal for India Cement
Ltd,

) Companies earning per share is also acceptable when we make a comparison

of it with other players

) There are some players who have suffered loss like Barak valley Cements and
Andra Cements.

) After the comparison of India cements ltd. With various players of industry.
We can say that company is at compiting stage.

) To be concluded we are in a position to say that company position is at par

with industry but it is behind of some big players of Industry like ACC
Cements ltd.
 CHANGE IN ITS SHARE PRICE OVER A YEAR

PRICES

Date Open High Low Close Avg Vol Adj Close*

Mar 10 119.90 137.40 116.40 131.00 2,006,900 131.00
Feb 10 120.20 126.40 113.20 118.00 844,900 118.00
Jan 10 123.30 132.35 121.90 125.40 2,132,100 125.40
Dec 09 112.50 125.50 112.05 123.80 2,006,600 123.80
Nov 09 108.40 113.90 96.80 111.50 2,212,900 111.50
Oct 09 134.95 136.90 108.25 109.95 1,556,300 109.95
Sep 09 134.00 137.70 124.00 134.65 2,429,300 134.65
Aug 09 140.75 155.85 127.75 134.10 3,041,300 134.10
Jul 31, 2009 $ 2.00 Dividend
Jul 09 133.00 155.60 122.40 139.95 2,344,000 139.95
Jun 09 155.60 180.00 129.05 132.35 2,841,000 130.46
May 09 117.50 157.35 106.05 153.85 3,076,800 151.65
Apr 09 107.85 136.90 105.00 115.00 1,893,400 113.35
BALANCE SHEET AND PROFIT AND LOSS A/C

Balance Sheet of India Cements ------------------- in Rs. Cr. -------------------

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds
Total Share Capital 163.59 215.77 220.37 281.87 282.43
Equity Share Capital 138.59 190.77 220.37 281.87 282.43
Share Application Money 13.91 13.91 40.00 0.00
Preference Share Capital 25.00 25.00 0.00 0.00
Reserves 199.42 670.22 1,166.18 2,314.94 2,683.03
Revaluation Reserves 912.29 857.02 781.98 724.30 665.93
Networth 1,289.21 1,756.92 2,208.53 3,321.11 3,631.39
Secured Loans 1,845.28 1,403.39 1,165.99 971.02 1,036.25
Unsecured Loans 141.96 121.85 892.77 840.49 951.78
Total Debt 1,987.24 1,525.24 2,058.76 1,811.51 1,988.03
Total Liabilities 3,276.45 3,282.16 4,267.29 5,132.62 5,619.42
Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds
Gross Block 2,985.28 3,002.75 3,856.04 4,708.69 5,313.58
Less: Accum. Depreciation 783.43 918.76 1,060.21 1,244.24 1,505.33
Net Block 2,201.85 2,083.99 2,795.83 3,464.45 3,808.25
Capital Work in Progress 2.99 30.98 142.75 574.91 904.04
Investments 34.84 34.84 55.07 129.28 158.97
Inventories 201.60 213.82 248.50 350.64 390.92
Sundry Debtors 183.38 240.59 260.21 311.07 353.98
Cash and Bank Balance 1.28 2.80 216.15 7.84 5.40
Total Current Assets 386.26 457.21 724.86 669.55 750.30
Loans and Advances 1,168.11 1,087.71 995.90 1,062.06 1,331.88
Fixed Deposits 1.64 40.82 14.04 417.80 79.80
Total CA, Loans & Advances 1,556.01 1,585.74 1,734.80 2,149.41 2,161.98
Deffered Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 539.72 495.09 463.82 1,143.36 1,342.01
Provisions 1.42 0.00 30.46 65.89 85.37
Total CL & Provisions 541.14 495.09 494.28 1,209.25 1,427.38
Net Current Assets 1,014.87 1,090.65 1,240.52 940.16 734.60
Miscellaneous Expenses 21.89 41.70 33.12 23.79 13.55
Total Assets 3,276.44 3,282.16 4,267.29 5,132.59 5,619.41

Contingent Liabilities 438.77 464.53 295.29 597.23 315.39

Book Value (Rs) 24.22 45.13 62.92 92.13 105.00

Profit & Loss account of India Cements ------------------- in Rs. Cr. -------------------

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Income
Sales Turnover 1,385.39 1,829.44 2,610.75 3,554.47 3,839.12
Excise Duty 223.25 287.69 355.54 510.22 480.78
Net Sales 1,162.14 1,541.75 2,255.21 3,044.25 3,358.34
Other Income 80.24 16.35 9.46 0.37 35.32
Stock Adjustments 6.26 -22.25 4.50 30.32 13.41
Total Income 1,248.64 1,535.85 2,269.17 3,074.94 3,407.07
Expenditure
Raw Materials 160.13 207.34 260.86 340.90 406.38
Power & Fuel Cost 433.98 483.02 549.00 690.75 891.60
Employee Cost 80.24 82.52 103.40 186.61 218.74
Other Manufacturing Expenses 15.03 20.41 25.14 30.87 49.99
Selling and Admin Expenses 315.06 434.44 541.66 664.35 769.93
Miscellaneous Expenses 21.67 25.00 34.34 68.50 96.50
Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00
Total Expenses 1,026.11 1,252.73 1,514.40 1,981.98 2,433.14
Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Operating Profit 142.29 266.77 745.31 1,092.59 938.61

PBDIT 222.53 283.12 754.77 1,092.96 973.93
Interest 133.50 148.93 149.80 109.95 112.15
PBDT 89.03 134.19 604.97 983.01 861.78
Depreciation 78.77 78.87 102.63 127.92 203.32
Other Written Off 5.68 5.35 10.38 10.44 10.24
Profit Before Tax 4.58 49.97 491.96 844.65 648.22
Extra-ordinary items 0.00 0.00 0.00 0.00 0.09
PBT (Post Extra-ord Items) 4.58 49.97 491.96 844.65 648.31
Tax 0.00 4.67 13.13 207.10 216.13
Reported Net Profit 4.58 45.31 478.83 637.54 432.18
Total Value Addition 865.98 1,045.38 1,253.54 1,641.09 2,026.76
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 0.00 0.00 30.46 65.89 54.85
Corporate Dividend Tax 0.00 0.00 19.65 0.90 11.23
Per share data (annualised)
Shares in issue (lakhs) 1,395.46 1,907.73 2,203.74 2,818.69 2,824.32
Earning Per Share (Rs) 0.33 2.38 21.73 22.62 15.30
Equity Dividend (%) 0.00 0.00 10.00 20.00 20.00
Book Value (Rs) 24.22 45.13 62.92 92.13 105.00

CAPITAL STRUCTURE.
In finance, capital structure refers to the way a corporation finances its assets
through some combination of equity, debt, or hybrid securities. A firm's capital
structure is then the composition or 'structure' of its liabilities. For example, a
firm that sells $20 billion in equity and $80 billion in debt is said to be 20%
equity-financed and 80% debt-financed. The firm's ratio of debt to total
financing, 80% in this example is referred to as the firm's leverage. In reality,
capital structure may be highly complex and include tens of sources. Gearing
Ratio is the proportion of the capital employed of the firm which come from
outside of the business finance, e.g. by taking a short term loan etc.

Capital structure depicts the proportion of Debt and equity in the balance sheet
of the company. It is a very important task for every financial manager to have
the capital structure in such a way that will not make hurdle in the growth of
company. As in the said company I have been assigned the task of analyzing the
capital structure, so that it will enable as to know the facts and consequences of
unstructured or unorganized capital structure.

India cement’s debt-equity ratio is given as follows:

For 2005,

Debt-equity ratio = 5.95

For 2006,

Debt-equity ratio = 1.80

For 2007,

Debt-equity ratio =1.48

For 2008,

Debt-equity ratio = 0.69

For 2009,

Debt-equity ratio = 0.67

With the help of above ratios, I will try my best to analyze the said task.

) It is revealed from the balance sheet that the amount of loan is increased year
by year in absolute amount but the ratio of debt has been decreased as compared
to equity when we calculate long term Debt/equity ratio.

) Total Debt-Equity ratio has also been decreased from 5.95 in 2005 to 0.67 in
2009.

) It shows that company is at profitability stage. Company is increasing its

profitability at an accelerated rate.

) Capital structure depicts that company is increasing the share of equity so

share holders are getting maximum share of profit.

)There is no doubt that company has decreased the amount of debt in capital
structure but the amount of current liabilities as compared to current assets has
been decreased. In year 2007 current ratio was 3.51 and in year 2009 it is 1.51.

) Due to the increase of equity amount in total capital company have paid more
to share holders subsequently retained amount have reduced.

) Earning per share has been reduced by Rs 7 in 2009 over corresponding year.
It depicts that company is unable to utilize the entire funds efficiently.
 LIQUIDITY POSITION
Liquidity is an important determinant in evaluating the survival of an
organization into the coming future. Liquidity plays a pivotal role in creating
the credit worth ness of a company in the eyes of its lenders. Liquidity tells us,
how efficient is an organisation while paying its dues.

In order to evaluate the liquidity of the assigned company. I will take help of its
balance sheet, so that ratios of liquidity will be calculated easily.

) Current Ratio is the first and foremost indicator of liquidity. Balance sheet of
the company reveals that in 2005 it was five years low i.e,1.10 but in 2007 it
was 2.00. it shows that company has strengthened its liquidity in the initial
years but due to increase in current liabilities, it came down to 1.13 in 2009.
That is marginal low from standard (1.33).

) Quick Ratio depicted that same behaviour as current ratio but still it manages
to maintain the standard that is only 1:1 company has over its standard that is
1.23 it will also determine that company is not falling any working capital
shortage in a shorter period of time.

) Company was able to show highest inventory turn over ratio in 2007. But due
to shortage of short term funds that are quite revealed from current ratio, it
shows a marginal decreasing trend in 2008 and 2009.

) Due to the shortage of short term funds or in other words we can say that poor
liquidity decreases the profitability of the company. As it is revealed from the
profit and loss A/C of the company that in year 2003 there was profit of Rs
637.54 Cr. But it decreased to Rs 432.10 cr. In 2009.

) If we take into consideration the balance sheet of the company it shows that
company has decreases its current assets and increased it s current liabilities
which ultimately increases intrest paid to suppliers on access credit.
) To be concluded as company still need to improve its liquidity that will be
done through credit sales and it will also increase the profitability of the
company.

FINANCIAL CREDIBILITY

Financial credibility can be depicted from the balance sheet as well as from the
profit and loss A/C. The total amount of balance sheet is at increasing trend and
it shows that company is expanding its business

Increase of equity amount also depicts that company is interested in expanding

its operations without taking risk of fixed interest that is why company has
reduced its debt amount and increased its equity amount. Financial credibility
can be depicted from the response of shareholders. They have a lot of interest in
company and consequently they have increased their share.

Over the last five years it is revealed from the profit and loss A/C of company
that company has not suffered any loss in this entire period of five years. But in
year 2009 company has shown a little downward trend over the corresponding
year.

To be concluded we can say company is at expansion stage and in future share

holders will reap good profits because of less interest payment paid on loans
and long term debts.

IPO ISSUES MADE BY COMPANY DURING LAST 5 YEARS

As far IPO’s are considered the company hasn’t issued any IPO’s in the past 5
years as per the records. So no IPO’ were issued by India cement Ltd.