Acount Term Paper Pptt........ (1)

8/3/2019 Acount Term Paper Pptt........ (1)

http://slidepdf.com/reader/full/acount-term-paper-pptt-1 1/20

Financial Report of ACC Ltd



ACC COMPANY PROFILEy ACC is Indias foremost manufacturer of cement and

concrete.

y ACCs operations are wide spread.y ACCs brand name is synonymous with cement.

y ACC extended its services overseas.

y ACC was formally established on August1,1936,sadly,F

E Din Shaw.

y Chairman of ACC Ltd is N.S.Sekhsaria



Accounting policy of ACC Ltd Accounting policies have been consistently applied by

the company and are consistent with those in the

previous year.Revenue recognitionrevenue is recognized to the

extent that is probable that the economic benefits willflow to the company and the revenue .

Financial statements are based on historical cost and areprepared on accrual basis.



Fixed Assets of ACC Ltd..y Fixed assets are stated at cost of acquisition or

construction less accumulated depreciation .

y Intangible assets in 2009 y Computer software-55.16 crore

y Mining rights-936.07 crore

y Tangible assets in 2009-

y Free hold land, lease hold land, buildings, machinery ,etc..



Fixed assets of ACCy Net fixed assets increased by 19.85%as compared to

previous year.

y Current liabilities have increased by 14.35%ascompared to 2008 primarily on account of higherprovision for marketing and sales expenses which inturn is arising out of higher sales during the year and

increase in provision for expenses in line with theincrease in turnover etc.



Depreciation .y Depreciation is provided on the straight line method

at the rates prescribed in schedule XIV of the

companies Act 1956 on a pro-rata basis.y The total amount of depreciation in 2009 is Rs 342.09

crore. but in 2008 it was 244.18 crore.



INVENTORYy There is a decrease in inventory of Rs 14.29 crore in

2009 in comparison to 2008. Decrease is 1.80%.

decrease is mainly on account of decrease in inventory of imported coal. Further the raw material inventory was higher than that of last year due to a significantincrease in the prices of gypsum.

y

Cost of Raw materials, fuel, packing materials aredetermined on a weighted average basis.



DIVIDENDSy In the year 2009 ACC Ltd has paid the dividend of

worth Rs.435.93 crore. But in 2008 it paid the dividend

of Rs 433.85. so there is an increase of 0.47%in 2009 incomparison to 2008.



LONG TERM LIABILIIESy There is increase in secured loans primarily on

account of issuance of Rs. 300 Crore secured non-

convertible debentures in the month of October 2009.During the current year, rupee term loan of Rs. 200Crore has been repaid in the month of December2009.

y

unsecured loan decreased in 2009. In 2008 it wasRs.32.03 crore but in 2009 it is Rs.16.92 crore. So thereis a decrease of 47%.



Depreciationy Depreciation has increased by 16.29% in 2009 in

comparison to 2008.

yDepreciation is provided on the straight line methodat the rates prescribed in schedule XIV of theCompanies Act 1956, on a pro-rata basis.

y Cost of leasehold land is amortized over the period of

the lease.



y Increase in profit in 2009 in comparison to 2008 is Rs.394crore.

yIncrease % is 32.48%. (in profit).



Cash flow statementObservation

y The company cash has followed indirect method of

cash flow statement.y The indirect method has adjusted net income for

items that has not affected cash in determining netcash provided by operating activities.

y The company has followed indirect method because itfocuses on the difference between net income and netcash flow from operating activities



Cash flow statementy Observation of ACCs Operating Activitiesy There is a loss of Rs 3.24 crore due to sale of assets in 2009.y Profit on sale of investment is Rs. 0.84 crore in 2009.y Since depreciation is a non cash charge, thats why it has

been added to net income to arrive at net cash provided by operating activities.

y The difference between net cash provided by operatingactivities and net income is Rs. 103.55 Crore.

y Since net income has been calculated according to accrualbase system so reader can assess for themselves thereliability of the income number.

y In 2008 net cash provided by operating activities was40%less than that of 2009.



Cash flow statementy Observations of ACCs Investing activities

y Cash outflow is more than cash inflow which is Rs.

2181.22 crore due to the purchase of fixed assets andinvestment.

y Investments have been sold also worth Rs. 4036.87crore.

y Interest and dividend have also been received.



y Observation of financing activities of the ACC Ltd

y The company has paid the dividend of Rs.435.93 crore.

y It has also paid the interest of Rs. 1055.4 core.y Cash outflow is more than cash inflow which is Rs.

454.58 crore.



Balance sheet of ACC Ltdy Observation of the Balance Sheet of ACC Ltd

y The company has issued 58473 shares more this year in

comparison to 2008.y This year the company has made the reserve for the

redemption of debenture which was not there last year.

y 8.45% non convertible debentures will be redeemed in the year 2014.

y There is no increase in the share capital in 2009 as opposedto that of 2008.

y



Income statement of ACC Ltd..y Observation of the Income statement of ACC Ltd is as

follows

y Company has paid less excise duty in comparison to last year.

y During the year 2009 there is marginal decrease of 1.86% in rentcost as compared to that of 2008.

y Expenditure has increased by 0.36%.

y Fringe benefit tax has decreased. The tax is basically given by theemployer for providing amenities to his employees.

y As compared to 2008 there is a reduction in the consumption of stores and spares consumed by Rs. 3.83 crore.

y There is also an increase in the amount of current tax whichshows that the company



Income statementy Increase in the profit in 2009 is Rs 393.94 crore .

y Its income statement is Multi Step Income statement

because it has highlighted the components of netincome.

y The sale of company has increased by 10.22% in the year 2009.

y In 2009 Net profit has increased by 35.94% incomparison to that of 2008.



Some information.2009 2008 Change

%

Production-million tonnes 21.37 20.83 2.6

Sales volume-milliontonnes* 21.52 21.01 2.4

Sales value - Rs. crore 8027.19 282.87 10.2



y The raw materials consumption of the company increased by 11.56% over the previous year mainly due

to higher prices of Gypsum and Slag consumed.

Documents

Acount Term Paper Pptt........ (1)