Estimation of Cash Flow & Income Components for The

ISSN: 2249-7196 IJMRR/June 2015/ Volume 5/Issue 6/Article No-13/454-469 N.B.C. Sidhu et. al., / International Journal of Management Research & Review

ESTIMATION OF CASH FLOW & INCOME COMPONENTS FOR THE FINANCIAL MANAGMENT OF FIRM Dr.I.Satyanarayana 1, N.B.C. Sidhu* 2, Ch.Venkati 3 1Principal, Sri Indu institute of Engineering & Technology, Sheriguda, Ibrahimpatnam, Telangana, India. 2Assoc. Prof & HOD, Dept. of Master of Business Administration, Sri Indu Institute of Engineering & Technology, Sheriguda, Ibrahimpatnam, Telangana, India. 3Student, Dept. of Master of Business Administration, Sri Indu Institute of Engineering & Technology, Sheriguda, Ibrahimpatnam, Telangana, India. ABSTRACT A financial management (or financial report ) is a formal record of the financial activities of a business, person, or other entity. In British English—including United Kingdom company law—a financial statement is often referred to as an account , although the term financial statement is also used, particularly by accountants. For a business enterprise, all the relevant financial information, presented in a structured manner and in a form easy to understand, are called the financial management. They typically include four basic financial management. For large corporations, these management are often complex and may include an extensive set of notes to the financial management and management discussion and analysis. The notes typically describe each item on the balance sheet, income statement and cash flow statement in further detail. Notes to financial management are considered an integral part of the financial management. Purpose of financial management by business entities The objective of financial management is to provide information about the financial position, performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions. Financial management should be understandable, relevant, reliable and comparable. Reported assets, liabilities and equity are directly related to an organization's financial position. Reported income and expenses are directly related to an organization's financial performance. Financial management are intended to be understandable by readers who have "a reasonable knowledge of business and economic activities and accounting and who are willing to study the information diligently." Financial management may be used by users for different purposes.

*Corresponding Author www.ijmrr.com 454

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INTRODUCTION ABOUT FINANCE Meaning of Financial Management Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise. Financial management has a wide scope Anticipation: Financial management estimates the financial needs of the company. That is, it finds out how much finance is required by the company. Acquisition : It collects finance for the company from different sources. Allocation : It uses this collected finance to purchase fixed and current assets for the company. Appropriation : It divides the company's profits among the shareholders, debenture holders, etc. It keeps a part of the profits as reserves. Assessment: It also controls all the financial activities of the company. Financial management is the most important functional area of management. All other functional areas such as production management, marketing management, personnel management, etc. depends on Financial management. Efficient financial management is required for survival, growth and success of the company or firm. Scope/Elements • Investment decisions includes investment in fixed assets (called as capital budgeting). Investment in current assets are also a part of investment decisions called as working capital decisions. • Financial decisions They relate to the raising of finance from various resources which will depend upon decision on type of source, period of financing, cost of financing and the returns thereby. Dividend decision The finance manager has to take decision with regards to the net profit distribution. Net profits are generally divided into two: • Dividend for shareholders Dividend and the rate of it has to be decided. • Retained profits Amount of retained profits has to be finalized which will depend upon expansion and diversification plans of the enterprise. Functions of Financial Management • Estimation of capital requirements: A finance manager has to make estimation with regards to capital requirements of the company. This will depend upon expected costs and profits and future programmes and policies of a concern. Estimations have to be made in an adequate manner which increases earning capacity of enterprise. • Determination of capital composition: Once the estimation have been made, the capital structure have to be decided. This involves short term and long term debt equity analysis.

This will depend upon the proportion of equity capital a company is possessing and additional funds which have to be raised from outside parties. • Choice of sources of funds: For additional funds to be procured, a company has many choices like • Issue of shares and debentures • Loans to be taken from banks and financial institutions • Public deposits to be drawn like in form of bonds. Choice of factor will depend on relative merits and demerits of each source and period of financing. • Investment of funds: The finance manager has to decide to allocate funds into profitable ventures so that there is safety on investment and regular returns is possible. • Disposal of surplus: The net profits decision have to be made by the finance manager. This can be done in two ways: • Dividend declaration It includes identifying the rate of dividends and other benefits like bonus. • Retained profits The volume has to be decided which will depend upon expansional, innovational, diversification plans of the company. • Management of cash: Finance manager has to make decisions with regards to cash management. Cash is required for many purposes like payment of wages and salaries, payment of electricity and water bills, payment to creditors, meeting current liabilities, maintainance of enough stock, purchase of raw materials, etc. • Financial controls: The finance manager has not only to plan, procure and utilize the funds but he also has to exercise control over finances. This can be done through many techniques like ratio analysis, financial forecasting, cost and profit control, etc. NEED FOR STUDY Need of financial management study to diagnose the information contain in financial statement. So as to judge the profitability and financial position of the firm.Financial analyst analyses the financial statements with various tools of analysis before commanding upon the financial health of the firm. Financial management is more than keeping accounting records. It is an essential part of organizational management and cannot be seen as a separate task to be left to finance staff or the honorary treasurer. Financial management involves planning, organizing, controlling and monitoring financial resources in order to achieve organizational objectives. You can only achieve effective financial management if you have a sound organizational plan. A plan in this context means having set objectives and having agreed, developed and evaluated the policies, strategies, tactics and actions to achieve these objectives. Sound financial management will involve you in longterm strategic planning and shortterm

Copyright © 2012 Published by IJMRR. All rights reserved 456 N.B.C. Sidhu et. al., / International Journal of Management Research & Review operations planning. This financial planning should become part of your organization’s ongoing planning process. Developing a financial management system is the creation of financial statements. To manage proactively, you should plan to generate financial statements on a monthly basis. Your financial statements should include an income statement, a balance sheet and a cash flow statement. Financial management works under two theories. One theory reins bad sources of fund. This theory elucidates us that we should think cost, risk and control and these should be minimum when we get money from others. Only financial management makes good financial structure to minimize cost, risk and control of borrowed money. Second theory elucidates or clarifies us that we should think about time, risk and return before investing our money. Our ROI should be more than our cost of capital. Our risk of investment should be least. We should get our money with high return within very short period. Objectives of Financial Management The financial management is generally concerned with procurement, allocation and control of financial resources of a concern. The objectives can be • To ensure regular and adequate supply of funds to the concern in KESORAM CEMENTS LIMITED . • To ensure adequate returns to the shareholders this will depend upon the earning capacity, market price of the share, expectations of the shareholders in KESORAM. • To ensure optimum funds utilization. Once the funds are procured, they should be utilized in maximum possible way at least cost. • To ensure safety on investment, i.e, funds should be invested in safe ventures so that adequate rate of return can be achieved. • To plan a sound capital structureThere should be sound and fair composition of capital so that a balance is maintained between debt and equity capital. • Interpret financial reports Including income statements, Profits and Loss or P&L, cash flow statements and balance sheet statements. Improve the allocation of working capital within business operations. Review and fine tune financial budgeting, and revenue and cost forecasting. Look at the funding options for business expansion, including both long and short term financing. Review the financial health of the company or business unit using ratio analyses, such as the gearing ratio, profit per employee and weighted cost of capital. Understand the various techniques using in project and asset valuations. Apply critical financial decision making techniques to assess whether to proceed with an investment. Understand valuations frameworks for businesses, portfolios and intangible assets. RESEARCH METHODOLOGY Research Design This is a systematic way to solve the research problem and it is important component for the study without which researches may not be able to obtain the format. A research design is the arrangement of conditions for collection and analysis of data in a manager that aims to

Copyright © 2012 Published by IJMRR. All rights reserved 457 N.B.C. Sidhu et. al., / International Journal of Management Research & Review combine for collection and analysis of data relevance to the research purpose with economy in procedure. MEANING OF RESEARCH DESIGN The formidable problem that follows the task of defining the research problem is the preparation of design of the research project, popularly known as the research design, decision regarding what, where, when, how much, by what means concerning an inquiry of a research study constitute a research design. A research design is the arrangement of conditions for collection and analysis of data in a manager that aims to combine for collection and analysis of data relevance to the research purpose with economy in procedure. SOURCES OF DATA Data we collected based on two sources. 1. Primary data 2. Secondary data. Primary data The Primary data are those information’s, which are collected afresh and for the first time, and thus happen to be original in character. Secondary Data The Secondary data are those which have already been collected by some other agency and which have already been processed. The sources of Secondary data are Annual Reports, browsing Internet, through magazines. • It includes data gathered from the annual reports of KESORAM CEMENTS LIMITED . • Articles are collected from official website of KESORAM CEMENTS LIMITED . METHODOLOGY USED 1. TYPES OF FINANCIAL STATEMENTS ADOPTED Following two types of financial statements are adopted in analyzing the firm financial position a. Balance Sheet . b. Profit and Loss statements. 2. TOOLS OF FINANCIAL STATEMENT ANALYSIS USED The following financial analysis tools are used in order to interpret the financial position of the firm. LIMITATIONS OF FINANCIAL STATEMENT 1. ONLY INTERIM REPORTS Only interim statements don’t give a final picture of the concern. The data given in these statements is only approximate. The actual position can only be determined when the business is sold or liquidated.

2. DON’T GIVE EXTRA POSITION The financial statements are expressed in monetary values, so they appear to give final and accurate position. The values of fixed assets in the balance sheet neither represent the value for which fixed assets can be sold nor the amount which will be required to replace these assets. 3. HISTORICAL COSTS The financial statements are prepared on the basis of historical costs or original costs. The value of assets decreases with the passage of time current price changes are not taken into account. The statements are not prepared keeping in view the present economic conditions. The balance sheet loses the significance of being an index of current economic realities. 4. ACT OF NON MONITORY FACTORS IGNORED There are certain factors which have a bearing on the financial position and operating results of the business but they don’t become a part of these statements because they can’t be measured in monetary terms. Such factors may include in the reputation of the management. NO PRECISION The precision of financial statement data is not possible because the statements deal with matters which can’t be precisely stated. The data are recorded by conventional procedures followed over the years. Various conventions, postulates, personal judgments etc. CEMENT INDUSTRY IN INDIA Introduction The Indian cement industry is directly related to the country's infrastructure sector and thus its growth is paramount in determining the development of the country. With a current production capacity of around 366 million tonnes (MT), India is the second largest producer of cement in the world and fueled by growth in the infrastructure sector, the capacity is expected to increase to around 550 MT by FY20. India has a lot of potential for development in the infrastructure and construction sector and the cement sector is expected to largely benefit from it. Some of the recent major government initiatives such as development of 100 smart cities are expected to provide a major boost to the sector. Expecting such developments in the country and aided by suitable government foreign policies, several foreign players such as the likes of Lafarge, Holcim and Vicat have invested in the country in the recent past. Another factor which aids the growth of this sector is the ready availability of the raw materials for making cement, such as limestone and coal. Market Size According to data released by the Department of Industrial Policy and Promotion (DIPP), cement and gypsum products attracted foreign direct investment (FDI) worth US$ 2,984.29 million between April 2000 and September 2014.

In India, the housing sector is the biggest demand driver of cement, accounting for about 67 per cent of the total consumption. The other major consumers of cement include infrastructure at 13 per cent, commercial construction at 11 per cent and industrial construction at nine per cent. To meet the rise in demand, cement companies are expected to add 56 MT capacity over the next three years. The cement capacity in India may register a growth of eight per cent by next year end to 395 MT from the current level of 366 MT. It may increase further to 421 MT by the end of 2017. The country's per capita consumption stands at around 190 kg. A total of 188 large cement plants together account for 97 per cent of the total installed capacity in the country, while 365 small plants account for the rest. Of these large cement plants, 77 are located in the states of Andhra Pradesh, Rajasthan and Tamil Nadu. The Indian cement industry is dominated by a few companies. The top 20 cement companies account for almost 70 per cent of the total cement production of the country. Investments On the back of growing demands, due to increased construction and infrastructural activities, the cement sector in India has seen many investments and developments in recent times. Some of them are as follows:

• Lafarge and Holcim plans to request for the European Commission's approval for their possible merger. The two companies had earlier unveiled plans in April 2014 to create the world's biggest cement group with US$ 44 billion in yearly sales.

• JSW cement plans to enter the Kerala market to cash in on the construction frenzy in the state. JSW is presently building a three million tonnes per annum (MTPA) capacity plant at Chitrapur in Karnataka to add to the current 5.4 MTPA capacity in South India.

• Zuari Cement through its subsidiary Gulbarga Cement Limited (GCL) plans to set up a 3.23 MT cement plant in Gulbarga, Karnataka. The company along with the cement plant is setting up a 50 MW captive power plant in the region.

• Malabar Cements plans to set up an automated cement handling and bagging unit as well as raw materials import facility in the Kochi port. Malabar Cements has projected a minimum throughput of 300,000 tonnes per annum which can be extendable up to 600,000 tonnes per annum, apart from intermediate products and raw materials such as clinker, limestone and coal.

• Reliance Cement Company (RCC), a subsidiary of Reliance Infrastructure, has entered into the cement market of Bihar where the demand for the building material is on the rise due to a realty boom. RCC presently has plants with total installed capacity of 5.8 MTPA. Government Initiatives In the 12th FiveYear Plan, the government plans to increase investment in infrastructure to the tune of US$ 1 trillion and increase the industry's capacity to 150 MT. The Cement Corporation of India (CCI) was incorporated by the Government of India in 1965 to achieve

Copyright © 2012 Published by IJMRR. All rights reserved 460 N.B.C. Sidhu et. al., / International Journal of Management Research & Review selfsufficiency in cement production in the country. Currently, CCI has 10 units spread over eight states in India. In order to help the private sector companies thrive in the industry, the government has been approving their investment schemes. Some such initiatives by the government in the recent past are as follows:

• The Andhra Pradesh State Investment Promotion Board (SIPB) has approved proposals worth Rs 9,200 crore (US$ 1.48 billion) including three cement plants and concessions to Hero MotoCorp project. The total capacity of these three cement plants is likely to be about 12 MT per annum and the plants are expected to generate employment for nearly 4,000 people directly and a few thousands more indirectly.

• India has joined hands with Switzerland to reduce energy consumption and develop newer methods in the country for more efficient cement production, which will help India meet its rising demand for cement in the infrastructure sector.

• The Government of India has decided to adopt cement instead of bitumen for the construction of all new road projects on the grounds that cement is more durable and cheaper to maintain than bitumen in the long run. Road Ahead With the Government of India providing a boost to the infrastructure and various housing projects coming up in urban as well as rural areas, the cement sector has enough scope for development in the future. Market Size The Indian cement sector is expected to witness positive growth in the coming years, with demand set to increase at a CAGR of more than 8 per cent in the period FY 201314 to FY 201516, according to the latest report titled ‘Indian Cement Industry Outlook 2016’ by market research consulting firm RNCOS. The report further observed that India’s southern region is creating the maximum demand for cement, which is expected to increase more in future. The cement and gypsum products sector has attracted foreign direct investments (FDI) worth US$ 2,656.29 million in the period April 2000–August 2013, according to data published by the Department of Industrial Policy and Promotion (DIPP). Investments

• Prism Cement Ltd has become the first Indian company to get the Quality Council of India's (QCI) certification for its readymix concrete (RMC) plant in Kochi, Kerala. The company received the certification from Institute for Certification and Quality Mark (ICQM), a leading Italian certification body authorised to oversee QCI compliance.

• UltraTech Cement, an Aditya Birla Group Company, has acquired the 4.8 million tonne per annum (MTPA) Gujarat unit of Jaypee Cement Corp for Rs 3,800 crore (US$ 595.61 million).

• ACC Ltd plans to invest Rs 3,000 crore (US$ 470.22 million) to expand its capacity by nearly 4 MT a year in three eastern region states, over the next three years.

• Reliance Cements Co Pvt Ltd will set up a 3 MTPA grinding unit at an estimated cost of Rs 600 crore (US$ 94.04 million). The unit is likely to come up at Raghunathpur in Purulia, West Bengal.

• Reliance Cement Co, a special purpose vehicle (SPV) of Reliance Infrastructure Ltd, is commissioning its first 5 MTPA plant in Madhya Pradesh. The project has been implemented at a cost of approximately Rs 3,000 crore (US$ 470.22 million).

• Zuari Cement plans to set up a cement grinding unit at Auj (Aherwadi) and Shingadgaon villages in Solapur, Maharashtra. The new unit will have a production capacity of 1 MTPA and is expected to be operational by the second quarter of 2015.

• JSW Steel has acquired Heidelberg Cement India's 0.6 MTPA cement grinding facility in Raigad, Maharashtra, for an undisclosed amount. Government Initiatives Giving impetus to the market, the Indian government plans to roll out publicprivate partnership (PPP) projects worth Rs 1 trillion (US$ 15.67 billion) over the next six months. The Principal Secretary in the Prime Minister's Office (PMO) will monitor these projects. Also, the steering group appointed by Dr Manmohan Singh, Prime Minister of India, to accelerate infrastructure investments, has set deadlines for the awarding of projects such as Mumbai rail corridor and Navi Mumbai Airport, among others. The Goa State Pollution Control Board (GSPCB) has signed a memorandum of understanding (MoU) with Vasavdatta Cement, a company with its plant in Karnataka. The firm would use the plastic waste collected by the state agencies and village panchayats from Goa as fuel for its manufacturing plant. Road Ahead The globallycompetitive cement industry in India continues to witness positive trends such as cost control, continuous technology upgradation and increased construction activities. Furthermore, major cement manufacturers in India are progressively using other alternatives such as bioenergy as fuel for their kilns. This is not only helping to bring down production costs of cement companies, but is also proving effective in reducing emissions. With the everincreasing industrial activities, real estate, construction and infrastructure, in addition to the various Special Economic Zones (SEZs) being developed across the country, there is a demand for cement. It is estimated that the country requires about US$ 1 trillion in the period FY 201213 to FY 201617 to fund infrastructure such as ports, airports and highways to boost growth, which promises a good scope for the cement industry. The 4 th Annual India Cement Sector Business Sentiment Survey is nearly out and the India Construction & Building Materials Journal provides the opportunity of an exclusive look at

Copyright © 2012 Published by IJMRR. All rights reserved 462 N.B.C. Sidhu et. al., / International Journal of Management Research & Review the survey’s results before their sharing with the wider audiences. We are glad to be able to present here some of the survey highlights and provide our readers with beforehand data regarding the views and expectations of cement industry professionals. Optimism continues to be the name of the game for the Indian cement industry – a function of longterm trends as well as human nature. But on a closer look, the survey shows that the optimism only runs skin deep and that it has already been eroded by an increasing percentage of industry members who feel dissatisfied with the overall performance of the field last year. For instance, the percentage of those who believe the industry performed “well” dropped from 43 percent in 2012 to 26 percent in 2013, while the number of respondents who believe the industry performed poorly almost tripled from 8 percent last year to 22 percent in 2013. Regarding the future evolution of the industry, survey participants continue to be on the optimistic side and hope for a “somewhat better” or “much better” performance compared to the last 6 months. China tackles pollution and overcapacity 2013 has been the year that China's central planners took action against cement production overcapacity and pollution. Consolidation plans for the industry followed falling profits for cement producers in 2012. However, record air pollution levels in Beijing in early 2013 shut the city down, raised public awareness and gave the government a strong lever to encourage further industry consolidation through environmental controls. By the middle of year profits of major producers were up but production was also up. Finally in December 2013, China started to launch its emissions trading schemes (ETS), led by Guangdong province, to create what will be the second largest carbon market in the world after the EU ETS. India faces a sticky wicket Meanwhile, the world's second largest cement producing country has faced poor profits and growth for cement producers blamed on paltry demand, piddling prices and proliferating production costs. Compounding that, the Indian Rupee fell to a historic low relative to the US Dollar in mid2013, further putting pressure on input costs. Holcim reacted to all of this by releasing plans to simplify its presence in the country between Holcim India, Ambuja and ACC. Sub-Saharan Africa draws up the battle lines Competition in subSaharan Africa is set to intensify when Nigeria's Dangote Cement opens its first cement plant in South Africa in early 2014. It is the first time Africa's two largest cement producers, Dangote and South Africa's PPC, will produce cement in the same country. Future clashes will follow across the region as each producer increasingly advances toward the other. The Kingdom needs cement... and workers Saudi Arabian infrastructure demands have created all sorts of reverberations across the Middle Eastern cement industry and beyond as the nation pushes on to build its six 'economic' cities amongst other projects. Back in April 2013 King Abdullah bin Abdulaziz Al Saud of Saudi Arabia issued an edict ordering the import of 10Mt of cement. Then some

Copyright © 2012 Published by IJMRR. All rights reserved 463 N.B.C. Sidhu et. al., / International Journal of Management Research & Review producers started to report production line shutdowns in the autumn of 2013 as they buckled under the pressure, although they consoled themselves with solid profit rises. Now, cement sales have fallen following a government crackdown on migrant workers that has hit the construction sector. Competition concerns in Europe Europe may be slowly emerging from the economic gloom but antitrust regulators have remained vigilant. An asset swap between Cemex and Holcim over units in the Czech Republic, Germany and Spain has received attention from the European Commission. In the UK the Competition Commission has decreed that further action is required for the cement sector following the creation of new player Hope Construction Materials in 2012. Lafarge Tarmac may now have to sell another one of its UK cement plants to increase more competition into the market. Elsewhere in Europe, Belgium regulators took action in September 2013 and this week we report on Polish action against cartellike activity. Don't forget South-East Asia, Brazil or Russia! Growth continues to dominate these regions and major sporting tournaments are on the way in Brazil and Russia, further adding to local cement demand. Votorantim may have cancelled its US$4.8bn initial public offering in August 2013 but it is still has the highest cement production capacity in Brazil. Finally, Indonesia may not have had any 'marquee' style story to sum up 2013 but it continues to regularly announce cement plant builds. In July 2013 the Indonesian Cement Association announced that cement sales growth had fallen to 'just' 7.5% for the first half of 2013. In the most general sense of the word, a cement is a binder, a substance which sets and hardens independently, and can bind other materials together. The word "cement" traces to the Romans, who used the term "opus caementicium" to describe masonry which resembled concrete and was made from crushed rock with burnt lime as binder. The volcanic ash and pulverized brick additives which were added to the burnt lime to obtain a hydraulic binder were later referred to as cementum, cimentum, cäment and cement. Cements used in construction are characterized as hydraulic or non-hydraulic . The most important use of cement is the production of mortar and concrete—the bonding of natural or artificial aggregates to form a strong building material which is durable in the face of normal environmental effects. Concrete should not be confused with cement because the term cement refers only to the dry powder substance used to bind the aggregate materials of concrete. Upon the addition of water and/or additives the cement mixture is referred to as concrete, especially if aggregates have been added. It is uncertain where it was first discovered that a combination of hydrated nonhydraulic lime and a pozzolan produces a hydraulic mixture (see also: Pozzolanic reaction), but concrete made from such mixtures was first used on a large scale by Roman engineers.They used both natural pozzolans (trass or pumice) and artificial pozzolans (ground brick or pottery) in these concretes. Many excellent examples of structures made from these concretes are still standing, notably the huge monolithic dome of the Pantheon in Rome and the

Copyright © 2012 Published by IJMRR. All rights reserved 464 N.B.C. Sidhu et. al., / International Journal of Management Research & Review massive Baths of Caracalla. The vast system of Roman aqueducts also made extensive use of hydraulic cement. The use of structural concrete disappeared in medieval Europe, although weak pozzolanic concretes continued to be used as a core fill in stone walls and columns. Modern cement Modern hydraulic cements began to be developed from the start of the Industrial Revolution (around 1800), driven by three main needs: Hydraulic renders for finishing brick buildings in wet climates Hydraulic mortars for masonry construction of harbor works etc, in contact with sea water. Development of strong concretes. In Britain particularly, good quality building stone became ever more expensive during a period of rapid growth, and it became a common practice to construct prestige buildings from the new industrial bricks, and to finish them with a stucco to imitate stone. Hydraulic limes were favored for this, but the need for a fast set time encouraged the development of new cements. Most famous was Parker's "Roman cement." This was developed by James Parker in the 1780s, and finally patented in 1796. It was, in fact, nothing like any material used by the Romans, but was a "Natural cement" made by burning septaria nodules that are found in certain clay deposits, and that contain both clay minerals and calcium carbonate. The burnt nodules were ground to a fine powder. This product, made into a mortar with sand, set in 5– 15 minutes. The success of "Roman Cement" led other manufacturers to develop rival products by burning artificial mixtures of clay and chalk. John Smeaton made an important contribution to the development of cements when he was planning the construction of the third Eddystone Lighthouse (17559) in the English Channel. He needed a hydraulic mortar that would set and develop some strength in the twelve hour period between successive high tides. He performed an exhaustive market research on the available hydraulic limes, visiting their production sites, and noted that the "hydraulicity" of the lime was directly related to the clay content of the limestone from which it was made. Smeaton was a civil engineer by profession, and took the idea no further. Apparently unaware of Smeaton's work, the same principle was identified by Louis Vicat in the first decade of the nineteenth century. Vicat went on to devise a method of combining chalk and clay into an intimate mixture, and, burning this, produced an "artificial cement" in 1817. James Frost,orking in Britain, produced what he called "British cement" in a similar manner around the same time, but did not obtain a patent until 1822. In 1824, Joseph Aspdin patented a similar material, which he called Portland cement, because the render made from it was in color similar to the prestigious Portland stone. All the above products could not compete with lime/pozzolan concretes because of fast setting (giving insufficient time for placement) and low early strengths (requiring a delay of many weeks before formwork could be removed). Hydraulic limes, "natural" cements and "artificial" cements all rely upon their belite content for strength development. Belite develops strength slowly. Because they were burned at temperatures below 1250 °C, they contained no alite, which is responsible for early strength in modern cements. The first cement to consistently contain alite was made by Joseph Aspdin's son William in the early

1840s. This was what we call today "modern" Portland cement. Because of the air of mystery with which William Aspdin surrounded his product, others (e.g. Vicat and I C Johnson) have claimed precedence in this invention, but recent analysis of both his concrete and raw cement have shown that William Aspdin's product made at Northfleet, Kent was a true alitebased cement. However, Aspdin's methods were "ruleofthumb": Vicat is responsible for establishing the chemical basis of these cements, and Johnson established the importance of sintering the mix in the kiln. William Aspdin's innovation was counterintuitive for manufacturers of "artificial cements", because they required more lime in the mix (a problem for his father), because they required a much higher kiln temperature (and therefore more fuel) and because the resulting clinker was very hard and rapidly wore down the millstones which were the only available grinding technology of the time. Manufacturing costs were therefore considerably higher, but the product set reasonably slowly and developed strength quickly, thus opening up a market for use in concrete. The use of concrete in construction grew rapidly from 1850 onwards, and was soon the dominant use for cements. Thus Portland cement began its predominant role. it is made from water and sand Types of modern cement Portland cement Cement is made by heating limestone (calcium carbonate), with small quantities of other materials (such as clay) to 1450°C in a kiln, in a process known as calcination, whereby a molecule of carbon dioxide is liberated from the calcium carbonate to form calcium oxide, or lime, which is then blended with the other materials that have been included in the mix . The resulting hard substance, called 'clinker', is then ground with a small amount of gypsum into a powder to make 'Ordinary Portland Cement', the most commonly used type of cement (often referred to as OPC). Portland cement is a basic ingredient of concrete, mortar and most nonspeciality grout. The most common use for Portland cement is in the production of concrete. Concrete is a composite material consisting of aggregate (gravel and sand), cement, and water. As a construction material, concrete can be cast in almost any shape desired, and once hardened, can become a structural (load bearing) element. Portland cement may be gray or white. Portland cement blends These are often available as interground mixtures from cement manufacturers, but similar formulations are often also mixed from the ground components at the concrete mixing plant. Portland blastfurnace cement contains up to 70% ground granulated blast furnace slag, with the rest Portland clinker and a little gypsum. All compositions produce high ultimate strength, but as slag content is increased, early strength is reduced, while sulfate resistance increases and heat evolution diminishes. Used as an economic alternative to Portland sulfate resisting and lowheat cements. Portland flyash cement contains up to 30% fly ash. The fly ash is pozzolanic, so that ultimate strength is maintained. Because fly ash addition allows a lower concrete water

Copyright © 2012 Published by IJMRR. All rights reserved 466 N.B.C. Sidhu et. al., / International Journal of Management Research & Review content, early strength can also be maintained. Where good quality cheap fly ash is available, this can be an economic alternative to ordinary Portland cement. Portland pozzolan cement includes fly ash cement, since fly ash is a pozzolan, but also includes cements made from other natural or artificial pozzolans. In countries where volcanic ashes are available (e.g. Italy, Chile, Mexico, the Philippines) these cements are often the most common form in use. Portland silica fume cement . Addition of silica fume can yield exceptionally high strengths, and cements containing 520% silica fume are occasionally produced. However, silica fume is more usually added to Portland cement at the concrete mixer. Masonry cements are used for preparing bricklaying mortars and stuccos, and must not be used in concrete. They are usually complex proprietary formulations containing Portland clinker and a number of other ingredients that may include limestone, hydrated lime, air entrainers, retarders, waterproofers and coloring agents. They are formulated to yield workable mortars that allow rapid and consistent masonry work. Subtle variations of Masonry cement in the US are Plastic Cements and Stucco Cements. These are designed to produce controlled bond with masonry blocks. Expansive cements contain, in addition to Portland clinker, expansive clinkers (usually sulfoaluminate clinkers), and are designed to offset the effects of drying shrinkage that is normally encountered with hydraulic cements. This allows large floor slabs (up to 60 m square) to be prepared without contraction joints. White blended cements may be made using white clinker and white supplementary materials such as highpurity metakaolin. Colored cements are used for decorative purposes. In some standards, the addition of pigments to produce "colored Portland cement" is allowed. In other standards (e.g. ASTM), pigments are not allowed constituents of Portland cement, and colored cements are sold as "blended hydraulic cements". Very finely ground cements are made from mixtures of cement with sand or with slag or other pozzolan type minerals which are extremely finely ground together. Such cements can have the same physical characteristics as normal cement but with 50% less cement particularly due to their increased surface area for the chemical reaction. Even with intensive grinding they can use up to 50% less energy to fabricate than ordinary Portland cements. Non-Portland hydraulic cements Pozzolan-lime cements. Mixtures of ground pozzolan and lime are the cements used by the Romans, and are to be found in Roman structures still standing (e.g. the Pantheon in Rome). They develop strength slowly, but their ultimate strength can be very high. The hydration products that produce strength are essentially the same as those produced by Portland cement. Slag-lime cements. Ground granulated blast furnace slag is not hydraulic on its own, but is "activated" by addition of alkalis, most economically using lime. They are similar to pozzolan lime cements in their properties. Only granulated slag (i.e. waterquenched, glassy slag) is effective as a cement component.

Supersulfated cements. These contain about 80% ground granulated blast furnace slag, 15% gypsum or anhydrite and a little Portland clinker or lime as an activator. They produce strength by formation of ettringite, with strength growth similar to a slow Portland cement. They exhibit good resistance to aggressive agents, including sulfate. Calcium aluminate cements are hydraulic cements made primarily from limestone and bauxite. The active ingredients are monocalcium aluminate CaAl 2O4 (CaO · Al 2O3 or CA in Cement chemist notation, CCN) and mayenite Ca 12 Al 14 O33 (12 CaO · 7 Al 2O3 , or C 12 A7 in CCN). Strength forms by hydration to calcium aluminate hydrates. They are welladapted for use in refractory (hightemperature resistant) concretes, e.g. for furnace linings. Calcium sulfoaluminate cements are made from clinkers that include ye'elimite

(Ca 4(AlO 2)6SO 4 or C 4A3 in Cement chemist's notation) as a primary phase. They are used in expansive cements, in ultrahigh early strength cements, and in "lowenergy" cements. Hydration produces ettringite, and specialized physical properties (such as expansion or rapid reaction) are obtained by adjustment of the availability of calcium and sulfate ions. Their use as a lowenergy alternative to Portland cement has been pioneered in China, where several million tonnes per year are produced. Energy requirements are lower because of the lower kiln temperatures required for reaction, and the lower amount of limestone (which must be endothermically decarbonated) in the mix. In addition, the lower limestone content and lower fuel consumption leads to a CO 2 emission around half that associated with Portland clinker. However, SO 2 emissions are usually significantly higher. "Natural" Cements correspond to certain cements of the prePortland era, produced by burning argillaceous limestones at moderate temperatures. The level of clay components in the limestone (around 3035%) is such that large amounts of belite (the lowearly strength, highlate strength mineral in Portland cement) are formed without the formation of excessive amounts of free lime. As with any natural material, such cements have highly variable properties. Geopolymer cements are made from mixtures of watersoluble alkali metal silicates and aluminosilicate mineral powders such as fly ash and metakaolin. FINDNGS • We found that every year the sales are increases in increased manner. It shows good sign for the organization. It fluctuates only one year due to competition and heavy expenditure in fixed assets. • The gross profit was decreased every year. This was happened due to increasing of cost of goods sold every year • In the year 2014, they spend more money towards raw material sealing and distribution transportation and administration expenses and debtors also increased. The shows results in reduction of operating profit in 2014. • On overall ever year cash & bank balance were increased fixed deposits receipts are decreased inventories on average are in good position.

• In the year 2014 they minimized the exp .of stores maintenance. But other expensed like packing materials and transportation charges increased rapidly CONCLUSION The financial position of Kesoram is quite comfortable with a judicious mix of debt and equity. The overall assessment of financial statement signifies efficient utilization of the investments, loans and advances. The profitability of the company appears to be impressive, as judged by increase in reserves and surplus. The management discussions and analysis by Director’s report and opinions expressed by Auditor’s report through financial statements is true and fair view in accordance with the provisions of the companies Acts, and Accounting standards. The overall financial position of the company appears to be more than satisfactory. SUGGESTIONS • The company should provide notes to explain items not tallying with the profit and loss and balance sheet in the Annual report. • Instead of disclosing the combined flows of debtors and loans advances as decrease/(increase) in trade and other receivables, their separate disclosure will be more meaningful. • Globalization of economies and the requirement of shares from investors in capital market, diverse and demanding audience to the company, need a clear and indepth in information about the company’s financial position in Annual report. • Comparison of basic and diluted EPS to be included in Annual report to predict the EPS sustainable in future. REFERENCES Kahan & Jain. Financial Management. Pandey IM. Financial Management. Trivedi RP. Management Accounting. Business Today. The Economic Times www.kesoram.com www.moneycontrol.com www.googlefinance.com