Aditya Birla Group
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e:J .N-'U8S110:Ka20180029S ADITYA BIRLA GROUP NO. fHRD/76[C]-Fl2018/ \C30 Date: 10104/2018 This is to verify that Mr PUNITH J N, MBA student, USN: 1AY16MBA51 of Acharya Institute Of Technology, Acharya Dr. Sarvapalli Radhakrishna Road, Hesaraghatta Main Road,Bengaluru-560090. Affiliated to Visvesvaraya University, Belgaum, has done Project work on the topic "A Study On Cash From Operating Activities And Its Management "at Aditya Birla limited, Bengalurur Kamataka Soaps And Detergents Limited, Bengalur, from 15- 01-2018 to 10-04-2018. During his Project work in the Organisation , We have found his Character & Conduct to be good. We wish bis success in life and Career. Aditya Birla Groups 3, Industry House #45, Race Course Road, Beside Chalukya Hotel, Bengaluru, Karnataka-560001 ACHARYA INSTITUTE OF TECHNOLOGY (Affiliated to Visvesvaraya Technological University, Belagavi, Approved by AICTE, New Delhi and Accredited by NBA and NAAC) Date: 25/05/2018 CERTIFICATE This is to certify that Mr. Punith J N bearing USN 1AY16MBA51 is a bonafide student of Master of Business Administration course of the Institute 2016-18 batch, affiliated to Visvesvaraya Technological University, Belagavi. Project report on "A Study on Cash from Operating Activities and its Management at Aditya Birla Ltd. Bangalore" is prepared by him under the guidance of Prof. Mallika B K, in partial fulfillment of the· requirements for the award of the degree of Master of Business Administration, Visvesvaraya Technological University, Belagavi, Kamataka. Signature of Internal Guide Signature~ of HOD k" Signature of Principal PRINCIPAL ACHARYA INSTITUTE OF Tfa.,m~OLOG'/ ia1uevanahalli Bangalore-560 10( Acharya Dr. Sarvepalli Radhakrishnan Road, So ladevanahalli, Acharya PO., Bangalore 560 107, Karnataka, India • www.acharya .ac.in/ait/ • Ph: +91 -80-225 555 55 Extn.: 2102 • Fax: +91 -80-237 002 42 • E-mail: [email protected] DECLARATION I, Punith J N bearing USN IAY16MBA51 hereby declared that the project report entitled" A STUDY ON CASH FROM OPERATING ACTIVITIES " at " Aditya Birla LTD" prepared by me under the guidance of Prof. Mallika B K, faculty of MBA Department, AIT and external assistance by Mr. Sudharshan S V Manager of Accounts- Aditya Birla Ltd. I also declare that this project work is toward the partial fulfillment of the university Regulations for the degree of Master of Business Administration by Visvesvaraya Technological University, Belgaum. I have undergone a summer project for the period of ten weeks. I further declare that this project is based on the original study undertaken by me and has not been submitted for the award of any degree/diploma from any other University / Institution. ~j t-l Place: Bengaluru Signature of the Student Date: JS-/ OS /~VI i ACKNOWLEDGEMENT I would like to thank my people who have helped and supported me while doing my Project report and work. There is not enough word to offer vote of thanks to Dr. Nijaguna G, Head of the Department of MBA, AIT Bengaluru for his help in initiating the project report in advance for the regular motivation, my guides Prof. Mallika B K faculty of MBA Department, AIT Bengaluru and Mr.Sudharshan S V Manager of Accounts- ADITYA BIRLA Ltd Bangalore for their admirable help, suggestions and opinions on the contribution during and after the project report period. I would also like to thank Mr.Vishwanath HR Manager at Aditya birla ltd for giving me the permission to carry my project work. Place: Bengaluru Punith J N Date: 25th May, 2018 USN: 1AY16MBA51 TABLE OF CONTENTS CHAPTER CHAPTERS PAGE NO. NO. EXECUTIVE SUMMARY 1 1 INTRODUCTION 2 1.1 Industry Profile 3 1.2 Company profile 3 1.3 Vision, Mission , Goals and Quality policy 4 1.4 Product and Service Profile 5 1.5 Swot Analysis 5-6 1.6 Financial statements 7 2 THEORETICAL BACKGROUND AND LITERATURE REVIEW 2.1 Theoretical background 9-13 2.2 Review of Literature 14-15 3 RESEARCH DESIGN 3.1 Statement of Problem 17 3.2 Need for the study 17 3.3 Objective of the study 18 3.4 Scope of the study 18 3.5 Research Methodology 18-19 3.6 Limitations of the study 19 4 DATA ANALYSIS AND INTERPRETATION 21-43 5 SUMMARY OF FINDINGS, SUGGESTIONS AND CONCLUSION 5.1 Findings 45 5.2 Suggestions 46 5.3 Conclusion 47 BIBLIOGRAPHY 48-49 ANNEXURE 50-56 LIST OF TABLES TABLE TITLES PAGE NO. NO. 4.1 Cash flow statement for 5 years 4.2 Graph showing Net cash flow from operating activities 22 4.3 Net cash flow from investing activities 4.4 Graph showing nest cash flow from financing activities 23 4.5 Table showing current assets 4.6 GraphComparing assets for the 5 financial years : 4.7 Table showing increment and decrement of assets over the 24 financial period 4.8 Graph showing increment and decrement of assets over the financial period 4.9 Table showing Comparison of current liabilities 25 4.10 Graph showing Comparison of current liabilities 4.11 26 Table showing increment and decrement of assets over the financial period 4.12 Graph showing increment and decrement of liabilities over the financial period 4.13 Table showing comparison of working capital 27 4.14 Graph showing comparison of capital 4.15 Table showing increment and decrement ofworking capital over 28 the financial period 4.16 Graph showing increment and decrement of assets over the financial period 4.17 Table showing increment and decrement in cash over the financial 29 period 4.18 Graph showing increment and decrement in cash over the financial period 4.19 Table showing Earning per ratio 30 4.20 Graph showing Earning per ratio 4.21 Table showing Dividend for share 31 4.22 Graph showing Dividend for share 4.23 Table showing Revenue from operations 32 4.24 Graph showing Revenue from operations 4.25 Table showing Net profit /share 34 4.26 Graph showing Net profit /share 4.27 Table showing Net profit /Margin 35 4.28 Graph showing Net profit /Margin 4.29 Table showing Quick ratio 36 4.30 Graph showing Quick ratio 4.31 Table showing Inventory turnover ratio 37 4.32 Graph showing Inventory turnover ratio 4.33 Table showing Dividend payout ratio 38 4.34 Graph showing Dividend payout ratio 4.35 Table showing cash earnings retention ratio 40 4.36 Graph showing cash earnings retention ratio 4.37 Table showing EV/Net operating revenue 42 4.38 Graph showing EV/Net operating revenue 4.39 Table showing Market cap/Net operating revenue 44 4.40 Table showing Market cap/Net operating revenue 4.41 Table showing Retention ratios 46 4.45 Graph showing Retention ratios EXECUTIVE SUMMARY This project work was done in Aditya Birla limited Bengaluru. The topic which was selected is to do a project report work on “ A Study On Cash From Operating Activities And Its Management At Aditya Birla Limited -Bengaluru”. Accrual-based financial statements reflect Assets, Liabilities, Income and Expenses, And not just monetary income and payments. Submit cash flow statement .It is therefore an important part of the financial statement. The cash flow statement usually provides information on how the industry will raise funds Cash required to fund its activities and how to use cash period. The undertaken study aims to measure the cash flow from operating activities at the cement firm. Which in turn used to find the affect of working capital on operating activities.And also the long term solvency position of Aditya birla. At the end of the project, it has come to my mind that from the analysis of financial statements, it can be transparent that Ultra Technical Cement suffered losses during the study period. Therefore, companies should pay immediate and careful attention to internal and external factors and create profits in the coming years. 1 CHAPTER 1 INTRODUCTION 2 INDUSTRY PROFILE India is the second greatest creator of bond on the planet. No enormous astonishment, India's bond industry is a basic bit of its economy, offering work to in excess of a million people, clearly or by implication. As far back as it was deregulated in 1982, The Indian solid industry has pulled in tremendous endeavors, both from Indian and moreover remote theorists. India has an impressive measure of potential for headway in the structure and improvement portion and the solid division is depended upon, all things considered, advantage from it. A bit of the present genuine government exercises, for instance, progression of 98 splendid urban regions are depended upon to give a critical lift to the part. It is expected that this progress will be made in this country and supported by sound government external methods. Some distant participants, such as Lafarge-Holcim, Heidelberg Cement and Vicat, have already invested assets in the country in previous years. A huge part of the promotion of this part of the progress is the availability of raw materials used to make concrete, such as limestone and coal COMPANY PROFILE The Group's non-ferrous metals belong to Hindalco Industries . Its manufacturing site is mainly located in India and has mines in the Desert of Australia. It is close to Nifty Airport and is named Birla Nifty Copper Operation. On February 15, 2006, the company signed an agreement to acquire Canada's Noveliss Corporation for US$6.1 billion making the joint entity the world's largest rolled aluminium producer. On May 16, 2008, the acquisition was completed and the return of ordinary shares of Novelis shareholders was US$44.52. The group plans to close part of its aluminum foil manufacturing facility in the United Kingdom and transfer it to a factory near Nagpur.