Final Report

On

”A STUDY ON THE FINANCIAL PERFORMANCE

ANALYSIS OF
DECCAN CEMENT LTD & ANJANI PORTLAND CEMENTS”

SUBMITTED IN THE PARTIAL FULFILLMENT OF THE

REQUIREMENT TOWARDS THE AWARD FOR THE DEGREE
OF BACHELOR OF COMMERCE (HONOURS).

SUBMITTED BY:
Name: Aninda Nandi Majumder
ID: 20IUT0360025
Program: B.COM (H), 3rd YEAR

SUBMITTED TO:
Faculty of Management and Commerce (FMC)
ICFAI University, Tripura

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 ACKNOWLEDGEMEMT

I would like to take this opportunity to express my gratitude and appreciation to

the people who have supported me throughout my dissertation journey.

Firstly, I would like to thanks my supervisor: Prof. Tamladipta Sen for giving
valuable guidance, support and encouragement throughout my research in
shaping my research and enhancing its quality.

I am also grateful to the faculty of ICFAI UNIVERSITY for providing me with

the necessary resources and facilities to carry out my research.

Lastly, I would like to express my gratitude to my friends and family for their
unwavering support and encouragement in my dissertation journey. Their love
and support have kept me motivated during the challenging times.

Once, again Thank you to everyone who has supported me in this journey.

Signature of the student

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 TABLE OF CONTENTS

SL
PARTICULARS PAGE NO.
NO.

LIST OF TABLES 03

INTRODUCTION 04

COMPANY PROFILE 05-07

LITERATURE REVIEW 08-10

OBJECTIVES 11

METHODOLOGY 12

DATA ANALYSIS AND FINDINGS 13-43

CONCLUSION 44-45

REFFERENCES 46

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 LIST OF TABLE AND FIGURE

NO. NAMES

Table 1 Profit & Loss A/C of Deccan Cement Ltd

Table 2 Balance Sheet of Deccan Cement Ltd
Table 3 PIOTROSKI F-SCORE of Deccan Cement Ltd
Table 4 DU-PONT Analysis of Deccan Cement Ltd
Table 5 Altman’s Z-Score of Deccan Cement Ltd
Table 6 Profit & Loss A/C of Anjani Portland Cements
Table 7 Balance Sheet of Anjani Portland Cements
Table 8 PIOTROSKI F-SCORE of Anjani Portland Cements
Table 9 DU-PONT Analysis of Anjani Portland Cements
Table 10 Altman’s Z-SCORE of Anjani Portland Cements

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INTRODUCTION
The cement industry in India is a crucial part of the country's infrastructure development. It
plays a significant role in the construction sector, contributing to the growth of residential,
commercial, and infrastructure projects. Major players in the industry include Ultratech
Cement, ACC, and Ambuja Cements. The sector has witnessed technological advancements,
leading to increased production efficiency and environmental sustainability. Government
initiatives like "Housing for All" and infrastructure projects further drive the demand for
cement, making it a key component of India's economic landscape.

Here, the study of the financial performance of Deccan Cements Ltd and Anjani Portland
Cements involves a comprehensive analysis of their financial statements, key ratios, and
market indicators. This examination aims to assess their profitability, liquidity, solvency, and
overall financial health, providing valuable insights for investors, stakeholders, and decision-
makers in understanding the companies' economic viability and potential for growth.

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 COMPANY PROFILE

DECCAN CEMENTS LTD

Deccan Cements Ltd is a leading cement manufacturing

company based in India. Established in 1979, the company
operates its cement manufacturing plant in Nalgonda, Telangana.
Deccan Cements focuses on producing high-quality cement
products, catering to the construction and infrastructure sectors.

The company is known for its commitment to environmental

sustainability and adherence to stringent quality standards in
cement production. Deccan Cements has a diverse product portfolio, including Ordinary
Portland Cement (OPC), Portland Pozzolana Cement (PPC), and Sulphate Resistant Cement
(SRC), serving the varying needs of the construction industry.

Over the years, Deccan Cements has built a strong market presence and a reputation for
reliability in delivering superior cement solutions. The company's financial performance,
operational efficiency, and strategic initiatives contribute to its standing in the competitive
cement industry landscape.

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 ANJANI PORTLAND CEMENT LTD

Anjani Portland Cement Ltd is a prominent player in the cement industry based in India.
Established in 1986, the company operates a modern cement plant in Telangana, India. Anjani
Portland Cement is dedicated to the production of high-quality cement, catering to the
construction and infrastructure sectors.

The company's product range includes Ordinary Portland Cement (OPC) and Portland
Pozzolana Cement (PPC), meeting the diverse requirements of the construction industry.
Anjani Portland Cement is committed to sustainable and environmentally friendly practices in
its manufacturing processes.

With a focus on innovation and customer satisfaction, the company has established itself as a
reliable supplier of cement for various construction projects. Anjani Portland Cement's
financial performance, operational efficiency, and commitment to quality contribute to its
standing in the competitive cement market.

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 LITERATURE REVIEW

SL NO. AUTHOR & YEAR TITLE JOURNAL OBJECTIVE METHODOLOGY FINDINGS

Determination of To identify which
Liquidity, age of the firm,
profitability in variable are
South Asian operating profit ratio,
Bhayani Sanjay J. Indian Cement judging the Backward
1 Journal of interest rate and inflation
(2010) Industry: An profitability of Regression Analysis
Management rate has played a vital role
economic Indian Cement
in the determination
analysis. Industry
The study
attempted to
From the study it can be
examine the EVA
concluded that all the
Performance of of five cement
companies have been
Indian Cement MSN Journal companies. The
Chester J Robert E; EVA=NOPAT-Cost successful in creating value
2 companies amidst of study attempted
K.R.Pillai (2014) of Capital for their shareholders as
Global Turmoil: Management to examine the
they have managed to keep
an EVA Analysis EVA of five
their EVA positive, whilst
cement
displaying falling trend.
companies in
India
Performance Index
Working capital To examine the of working capital
management efficiency of management; The Indian Cement Industry
Ghosh,Santanu Kr. The
efficiency: A working capital Working capital as a whole did not perform
3 & Majisanti Gopa Management
study on the management of Utilisation Index; remarkably well during this
l(2004) Accountant
Indian Cement the Indian cement Efficiency index of period
industry companies working capital
Management
Mandal Sabuj Environmental Measuring Data Envelopment There is enough potential
4 Energy policy
Kumar & Efficiency of the Environmental Analysis & for the industry to improve

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 Subramaniam Indian Cement Efficiency within Directional Distance its environmental efficiency
Maheshwaran (2010) Industry: an a joint production Function being varied across state.
interstate analysis framework of Indian cement industry, if
both desirable and faced with Environmental
undesirable regulation has the potential
output. to expand desirable output
with the given inputs.
To Find the short-
term Financial
performance of
Financial International Financial position of the
the cement
Performance of Journal of companies are reasonable.
Muthusamy. A & companies and Convenience
5 selected Cement Research in But the companies must
Karthikas (2019) analyze the Sampling Method
companies in Commerce & improve their short-term
profitability
India Management solvency position.
condition of the
cement
companies
To find out ROE
impact of profit,
Study of Companies showed
asset turnover
Financial downfall in performance
ratio, leverage
performance of Descriptive during the year (2021-2022)
6 Singh, Gajraj (2022) ADHYAYAN ratio of ROE and
Cement Industry Research but RAMCO and Star
Analyze the
by using Du-Pont Cement showed an increase
performance by
Analysis in ROE.
year wise
ranking.
Analysis of The aim of this Arta Ardebil Cement
Financial Independent study was to Company, Khash Cement
Omrani, Sahar,
performance of Journal of provide a fuzzy FAHP and TOPSIS Company, and Soufian
7 Mostafa Jafari & Ali
Cement Industry Management model for method Cement Company were
Mansori (2019)
manufacturing & Production evaluating the ranked the first, the second,
companies in performance of and the third respectively.

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 Tehran Stock cement industry
Exchange using manufacturing
the FAHP companies listed
technique and the in Tehran.
TOPSIS Method
Impact of
Liquidity and To determine the
Solvency effect of liquidity
Journal of
Management on and solvency The relationship of liquidity
Arif, Bisma & Fizza Law & Socio- Quantitative
8 Firm Financial management on with ROE is insignificant
Batool (2022) cultural research
performance: firm financial negative and with the EPS.
studies
Evidence from performance by
Cement sector of cement.
Pakistan

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 PROPOSED OBJECTIVES OF THE STUDY

• To analyse the financial performance of selected cement companies listed in Indian stock
exchange.
• To calculate the Piotroski F-score of the selected companies.
• To analyse the business trend of the company by preparing Comparative Financial
Statement.
• To calculate the Altman Z-score of the selected companies.
• DU-PONT Analyze of the selected cement companies.

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 PROPOSED METHODOLOGY
In this study secondary data has been employed from final reports of the company published
on its official website and also moneycontrol.com. The data used are of 7 years starting from
2016 to 2023. Apart from this any other needed data like share price was taken from
screener.com. In order to analyze financial performance of the company, compare the
company’s position of the current year with the previous 7 years and to find out whether or not
the company will go bankrupt in the near future. The methods used to find the results were
common size analysis, comparative analysis and Piotroski F Score Model.

Comparative Statement Analysis: Comparative Statement analysis is a financial analysis

method that involves comparing two or more years of financial data from a company’s financial
statement to identify changes and trends. It is used to evaluate a company’s financial
performance over time and can provide insight into areas that may need improvement or areas
where the company is excelling. Comparative Statement analysis is useful for investors,

creditors, and management in making informed decisions.

Piotroski F-Score: The Piotroski score is discrete score between zero and nine that reflects
nine criteria used to determine the strength of a firm’s financial position. The Piotroski score is

used to determine the best value stocks, with nine being the best and zero being the worst.

DU-PONT Analysis: DuPont Analysis is a financial ratio analysis method used to decompose
the different drivers of return on equity (ROE). Named after the DuPont Corporation, which
started using this formula in the 1920s, DuPont Analysis helps investors and analysts
understand the underlying factors contributing to changes in ROE.

Altman’s Z-Score:

The Altman Z-score is a financial formula developed by Edward Altman in 1968 to predict the
likelihood of a business going bankrupt. It is particularly relevant for public manufacturing
companies, but has since been adapted for other types of businesses. The formula combines
five different financial ratios to arrive at a single number (the Z-score), which indicates the
financial health of a company.

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 PROFIT & LOSS A/C OF DECCAN CEMENTS
2022-23 2021-22 2020-21 2019-20 2017-18
2018-19 &
& 2021- & 2020- & 2019- & 2018- & 2016-
PARTICULARS 2017-18(in
22 ( in 21 ( in 20 (in 19(in 17 ( in
%)
%) %) %) %) %)
INCOME -1.23% 4.69% 36.17% -14.73% 9.38% 1.39%
REVENUE FROM
OPERATIONS 0.00% 0.00% 0.00% 0.00% -100.00% -73.29%
[GROSS]
Less: Excise/Service
-9.71% 4.69% 36.17% -14.73% 14.02% 14.93%
Tax/Other Levies
REVENUE FROM
OPERATIONS -1.23% 4.69% 36.17% -14.73% 14.02% 14.93%
[NET]
TOTAL
OPERATING -1.30% 4.47% 36.49% -14.75% 14.23% 14.91%
REVENUES
Other Income -13.01% 5.64% 5.75% -3.24% 150.13% 63.22%
TOTAL REVENUE -1.46% 4.49% 35.97% -14.58% 15.17% 15.15%
EXPENSES Nil Nil Nil Nil Nil Nil
Cost Of Materials
9.93% 15.48% 24.95% -10.86% 17.23% 7.42%
Consumed
Purchase Of Stock-In
0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Trade
Operating And Direct
0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Expenses
Changes In
Inventories Of - - -
-16.37% -66.42% -305.37%
FG,WIP And Stock- 473.68% 214.98% 313.85%
In Trade
Employee Benefit
-0.76% 2.56% 20.81% 4.56% 8.73% 7.80%
Expenses
Finance Costs 22.14% 37.42% 9.59% -12.29% 36.57% -17.25%
Depreciation And
Amortisation 5.75% 11.78% 10.81% -6.28% -1.67% 4.47%
Expenses
Other Expenses 13.41% 7.98% 18.78% -14.25% 16.09% 22.17%
TOTAL
8.64% 8.80% 21.39% -13.90% 14.20% 20.77%
EXPENSES
PROFIT/LOSS
BEFORE
EXCEPTIONAL, -50.99% -12.52% 158.24% -19.84% 23.36% -17.31%
EXTRAORDINARY
ITEMS AND TAX
- -
Exceptional Items 0.00% 0.00% 0.00% 0.00%
100.00% 100.00%
PROFIT/LOSS
-43.20% -24.52% 207.40% -32.66% 23.36% -17.31%
BEFORE TAX

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TAX EXPENSES-
CONTINUED 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
OPERATIONS
Current Tax -40.36% -26.72% 214.11% -52.33% 41.86% -21.68%
Less: MAT Credit
0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Entitlement
- -
Deferred Tax -75.85% 55.64% -40.05% 17.13%
107.20% 838.40%
Tax For Earlier -
-98.33% 300.00% -87.18% 0.00% 0.00%
Years 250.00%
TOTAL TAX - -
-41.68% -26.17% 30.06% -16.55%
EXPENSES 759.51% 121.04%
PROFIT/LOSS
AFTER TAX AND
BEFORE -43.70% -23.94% 103.27% 22.97% 19.48% -17.75%
EXTRAORDINARY
ITEMS
PROFIT/LOSS
FROM
-43.70% -23.94% 103.27% 22.97% 19.48% -17.75%
CONTINUING
OPERATIONS
PROFIT/LOSS
-43.70% -23.94% 103.27% 22.97% 19.48% -17.75%
FOR THE PERIOD

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Comparative Statement

Income:

There's a negative growth (-1.23%) in income for 2022-23 compared to 2021-22. However,
there was a significant increase in income in the previous year (2021-22), showing a growth
of 4.69% compared to 2020-21.

Revenue from Operations:

The net revenue from operations experienced fluctuations, with a decrease of 14.73% in
2022-23 compared to 2021-22, but a substantial increase of 36.17% in 2021-22 compared to
2020-21.

Total Revenue:

Total revenue growth mirrored the trends in revenue from operations, showing a decline in
2022-23 but significant growth in 2021-22.

Expenses:

Cost of materials consumed and other expenses showed fluctuations over the years, with
varying rates of increase or decrease.

Profit/Loss:

There was a considerable decrease in profit before tax in 2022-23 compared to the previous
year (2021-22), with a negative growth of -43.20%.

However, there was a significant increase in profit before tax in 2021-22 compared to 2020-
21, showing a growth of 207.40%.

The profit/loss after tax and before extraordinary items also followed similar trends, with
fluctuations over the years.

Tax Expenses:

Tax expenses showed significant variations, with a notable decrease in 2022-23 compared to
the previous year (2021-22).

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Overall Performance:

Overall, the company's financial performance exhibited fluctuations over the years, with both
positive and negative growth rates in different periods.

It's essential to analyze the reasons behind these fluctuations, considering factors such as
changes in market conditions, operational efficiency, cost management strategies, and any
exceptional items affecting the financials. Additionally, further investigation into the
company's financial health and future prospects would provide valuable insights for investors
and stakeholders.

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 BALANCE SHEET OF DECCAN CEMENTS
2022-23 2021-22 2020-21 2019-20 2018-19 2017-18
& 2021- & & & & &
PARTICULARS
22 ( in 2020-21 2019-20 2018-19 2017-18 2016-17
%) ( in %) (in %) (in %) (in %) ( in %)
EQUITIES AND
LIABILITIES
SHAREHOLDER'S FUND
Equity Share Capital 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
TOTAL SHARE CAPITAL 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Reserves and Surplus 6.56% 14% 26% 11% 11% 10%
TOTAL RESERVES AND
SURPLUS 6.56% 14% 26% 11% 11% 10%

TOTAL SHAREHOLDERS
FUNDS 6.49% 14% 26% 11% 11% 10%

NON-CURRENT
0.00% 0% 0% 0% 0% 0%
LIABILITIES
Long Term Borrowings 242.88% -11% -22% 166% -11% 8%
Deferred Tax Liabilities [Net] 0.70% 4% 3% -27% 4% 6%
Other Long Term Liabilities -92.31 -58% -47% -96% -4% 1%
Long Term Provisions 3.27% -7% 17% 22% 10% -10%
TOTAL NON-CURRENT
LIABILITIES 108.36% -4% -11% -3% 1% 5%

CURRENT LIABILITIES 0% 0% 0% 0% 0% 0%
Short Term Borrowings -10.90% 262% 55% -20% 297% -82%
Trade Payables 106.51% -40% 444% 74% 82% -18%
Other Current Liabilities 0.33% -20% 1% 90% 0% 37%
Short Term Provisions 14.89% 13% 36% -5% 9% 166%
TOTAL CURRENT
LIABILITIES 6.70% 25% 36% 55% 33% -17%

TOTAL CAPITAL AND

LIABILITIES 17.28% 14% 21% 14% 11% 5%

ASSETS 0% 0% 0% 0% 0% 0%
NON-CURRENT ASSETS 0% 0% 0% 0% 0% 0%
Tangible Assets -4.21% 1% 20% 6% -2% -4%
Intangible Assets 28.25% 8% -4% 27% -4% 6%
Capital Work-In-Progress 1030.39% 130% -85% 568% 102% 4822%
Other Assets -1.98% -1% -48% -2% -1% -1%
FIXED ASSETS 43.58% 4% 4% 21% -1% -3%
Non-Current Investments -17.65% 21% 75% -11% 50% -20%
Deferred Tax Assets [Net] 0% 0% 0% 0% 0% 0%
Long Term Loans And
0% 0% 0% 0% 0% 0%
Advances

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Other Non-Current Assets -10.25% 235% 93% -28% 66% -39%
TOTAL NON-CURRENT
ASSETS 35.19% 16% 7% 19% 1% -4%

CURRENT ASSETS 0% 0% 0% 0% 0% 0%
Current Investments 0% 0% 0% 0% 0% 0%
Inventories 42.10% 16% 3% 3% 11% 2%
Trade Receivables 19.64% -6% -47% 201% 18% 25%
Cash And Cash Equivalents -28.24% 15% 123% -11% 72% 44%
Short Term Loans And
350% -78% -31% 44% -53% -30%
Advances
Other Current Assets 82.52% -6% -7% -3% -18% 84%
TOTAL CURRENT ASSETS -6.47% 12% 47% 8% 32% 30%
TOTAL ASSETS 17.28% 14% 21% 14% 11% 5%

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Comparative Statement

Equities and Liabilities:

Shareholder's Fund:

Reserves and Surplus have shown fluctuations over the years, with a significant increase in
2022-23 compared to the previous year.

Non-Current Liabilities:

Long Term Borrowings have fluctuated significantly over the years, showing a substantial
increase in 2022-23 compared to the previous year.

Other Long Term Liabilities have fluctuated heavily, sometimes showing negative
percentages.

Current Liabilities:
Short Term Borrowings and Trade Payables have shown significant fluctuations over the
years.

Assets:

Non-Current Assets:

Tangible Assets have fluctuated, with a significant increase in 2022-23 compared to the
previous year.

Capital Work-In-Progress has shown extreme fluctuations over the years.

Current Assets:

Inventories and Trade Receivables have shown fluctuations over the years.

Cash And Cash Equivalents have fluctuated, with a significant increase in 2021-22 compared
to the previous year.

Overall Analysis:
There are significant fluctuations in various categories of assets and liabilities over the years,
indicating changing financial dynamics within the company.
It's notable that certain categories, such as Capital Work-In-Progress and Short Term
Borrowings, have shown extreme fluctuations, which might indicate changes in the
company's investment or financing strategies.

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 DECCAN CEMENTS LTD PIOTROSKI F-SCORE : VALUE INVESTING
2016- 2017- 2018- 2019- 2020- 2021- 2022-
17 18 19 20 21 22 23
PROFITABILITY:
Q1. NET INCOME 1 1 1 1 1 1 1
Q2. CASH FLOW TO FIRM (FCFF) 1 0 1 0 0 1 1
Q3. RETURN ON ASSETS (ROA) 0 0 1 1 1 0 0
Q4. QUALITY OF EARNING (ACCURAL) 1 0 0 0 1 1 1
FUNDINGS:
Q5. LEVERAGE (DEBT TO ASSET) 1 0 1 0 1 1 0
Q6. CURRENT RATIO 1 1 0 0 1 0 0
Q7. ISSURANCE OF NEW EQUITY
1 1 1 1 1 1 1
SHARE
EFFICIENCY:
Q8. CHANGE IN TOTAL ASSET
0 1 1 0 1 0 0
TURNOVER RATIO
Q9. GROSS MARGIN 1 0 1 1 0 0 1
Piotroski F-Score 7 4 7 4 7 5 5

INTERPRETATION
Based on the Piotroski F-Score calculation for Deccan Cement for the specified years:

Profitability:

Q1: Net Income (1 point each year): Net income is positive every year, indicating
profitability.

Q2: Cash Flow to Firm (FCFF) (1 point in 2016-17, 2018-19, 2021-22, and 2022-23):
Positive cash flow in most years indicates good financial health.

Fundings:

Q5: Leverage (Debt to Asset) (1 point in 2016-17, 2018-19, 2020-21): Leverage seems to
fluctuate but is generally present.

Q6: Current Ratio (1 point in 2016-17 and 2017-18): It's above 1 indicating good liquidity but
dropped subsequently.

Efficiency:

Q8: Change in Total Asset Turnover Ratio (1 point in 2017-18, 2018-19, and 2020-21):
Positive change indicates improving efficiency.

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Q9: Gross Margin (1 point in 2016-17, 2018-19, and 2020-21): Gross margin varies but
generally positive.

Quality of Earnings:

Q3: Return on Assets (ROA) (1 point in 2018-19, 2019-20, and 2020-21): Positive ROA
indicates profitability.

Q4: Quality of Earnings (Accrual) (1 point in 2016-17, 2020-21, and 2021-22): Positive
accrual indicates quality earnings.

Issuance of New Equity Share (1 point each year): Indicates stability in equity financing.

Based on this breakdown, the Piotroski F-Score for Deccan Cements Ltd is calculated as
follows:

2016-17: 7
2017-18: 4
2018-19: 7
2019-20: 4
2020-21: 7
2021-22: 5
2022-23: 5

FINDINGS

2016-17: The F-Score is 7, indicating good performance. Positive signs for net income, cash
flow to firm (FCFF), quality of earnings, leverage (debt to asset), current ratio, issuance of
new equity shares, and gross margin.

2017-18: The F-Score drops to 4. There are negative signs for FCFF, return on assets (ROA),
quality of earnings, leverage, and issuance of new equity shares.

2018-19: The F-Score improves back to 7. Positive signs for net income, FCFF, ROA, quality
of earnings, leverage, and gross margin.

2019-20: The F-Score drops again to 4. Negative signs for FCFF, ROA, quality of earnings,
and issuance of new equity shares.

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2020-21: The F-Score rebounds to 7. Positive signs for net income, quality of earnings,
leverage, current ratio, and gross margin.

2021-22: The F-Score declines to 5. Negative signs for FCFF, ROA, efficiency (change in
total asset turnover ratio), and gross margin.

2022-23: The F-Score remains at 5. Negative signs for FCFF, ROA, quality of earnings,
leverage, and efficiency.

Overall, the company's performance varies over the years, but it generally demonstrates
strength in profitability and funding aspects, while efficiency metrics fluctuate more. It's
essential to further investigate the reasons behind these fluctuations to make informed
investment decisions.

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 DECCAN CEMENT DU-PONT ANALYSIS
Return on Equity (ROE)
2022- 2021- 2020- 2019- 2018- 2017- 2016-
23(in 22(in 21( in 20(in 19(in 18(in 17(in
Cr.) Cr.) Cr.) Cr.) Cr. cr.) Cr.)
Net Profit 49.30 87.57 115.13 56.64 46.06 38.55 46.87
Shareholders' Equity 7 7 7 7 7 7 7
Return on Equity 7.0429 12.5100 16.4471 8.0914 6.5800 5.5071 6.6957

ROE - Dupont Equation

2022- 2021- 2020- 2019- 2018- 2017- 2016-
23(in 22(in 21( in 20(in 19(in 18(in 17(in
Cr.) Cr.) Cr.) Cr.) Cr. cr.) Cr.)
Net Profit 49.30 87.57 115.13 56.64 46.06 38.55 46.87
Revenue 790.84 802.52 768.06 564.89 661.29 574.20 498.66
Net Profit Margin (A) 0.0623 0.1091 0.1499 0.1003 0.0697 0.0671 0.0940

Revenue 790.84 802.52 768.06 564.89 661.29 574.20 498.66

Total Asset 1,155.22 984.98 861.48 710.49 621.26 559.59 534.56
Asset Turnover Ratio (B) 0.6846 0.8148 0.8916 0.7951 1.0644 1.0261 0.9328

Total Asset 1,155.22 984.98 861.48 710.49 621.26 559.59 534.56

Shareholders' Equity 7 7 7 7 7 7 7
Equity Multiplier (C) 165.03 140.71 123.07 101.50 88.75 79.94 76.37

Return on Equity (A*B*C) 7.04 12.51 16.45 8.09 6.58 5.51 6.70

Return on Asset
2022- 2021- 2020- 2019- 2018- 2017- 2016-
23(in 22(in 21( in 20(in 19(in 18(in 17(in
Cr.) Cr.) Cr.) Cr.) Cr. cr.) Cr.)
Net Profit 49.30 87.57 115.13 56.64 46.06 38.55 46.87
Total Asset 1,155.22 984.98 861.48 710.49 621.26 559.59 534.56
Return on Asset 4% 9% 13% 8% 7% 7% 9%

ROA-Dupont Equation
2022- 2021- 2020- 2019- 2018- 2017- 2016-
23(in 22(in 21( in 20(in 19(in 18(in 17(in
Cr.) Cr.) Cr.) Cr.) Cr. cr.) Cr.)
Net Profit 49.30 87.57 115.13 56.64 46.06 38.55 46.87
Revenue 790.84 802.52 768.06 564.89 661.29 574.2 498.66
Net Profit Margin (A) 0.0623 0.1091 0.1499 0.1003 0.0697 0.0671 0.0940

Net Profit 49.30 87.57 115.13 56.64 46.06 38.55 46.87

Total Asset 1,155.22 984.98 861.48 710.49 621.26 559.59 534.56
Asset Turnover Ratio (B) 0.0427 0.0889 0.1336 0.0797 0.0741 0.0689 0.0877

Return on Asset (A*B) 0.0027 0.0097 0.0200 0.0080 0.0052 0.0046 0.0082

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INTERPRETATION
Based on the DU-PONT analysis for Deccan Cement for the specified years:

Return on Equity (ROE):

ROE measures the company's profitability with respect to the shareholders' equity.

It's calculated by dividing net profit by shareholders' equity.

The trend shows fluctuations over the years, ranging from 5.51% to 16.45%.

Generally, higher ROE indicates better profitability and efficient use of equity capital.

Deccan Cement's ROE has varied over the years, suggesting changes in profitability and
efficiency in utilizing shareholders' equity.

ROE - Dupont Equation:

This approach breaks down ROE into three components: net profit margin, asset turnover
ratio, and equity multiplier.

Net profit margin reflects the company's ability to convert revenue into profit.

Asset turnover ratio indicates how efficiently the company utilizes its assets to generate
revenue.

Equity multiplier shows the proportion of assets financed by equity.

By multiplying these components, we get ROE.

The calculation shows a consistent ROE trend with the overall ROE trend, indicating that
changes in profitability, asset utilization, and leverage have influenced ROE.

Return on Assets (ROA):

ROA measures the company's profitability relative to its total assets.

It's calculated by dividing net profit by total assets.

ROA fluctuates over the years, ranging from 4% to 13%.

Higher ROA indicates better profitability from assets.

Deccan Cement's ROA has varied, reflecting changes in profitability relative to its asset base.

24 | P a g e
ROA - Dupont Equation:

Similar to ROE, ROA is analyzed using the Dupont equation.

It breaks down ROA into net profit margin and asset turnover ratio.
This analysis shows how efficiently the company converts revenue into profit and utilizes its
assets.

The calculation reveals fluctuations in ROA, influenced by changes in net profit margin and
asset turnover ratio.

Overall, the Dupont analysis provides a comprehensive view of Deccan Cement's financial
performance, highlighting the interplay between profitability, asset utilization, and financial
leverage. The company should focus on improving net profit margins, asset turnover, and
efficient use of equity to enhance ROE and ROA over time.

25 | P a g e
 Altman Z-Score Analysis Table of
Deccan Cement Ltd (figures in crores)
Mar- Mar-
Particulars Mar-23 Mar-22 Mar-21 Mar-20 Mar-19
18 17
113.3
Working Capital 144.63 187.8 189.08 118.13 149.16 57.44
9
559.5 534.5
Total Assets 1,155.22 984.98 861.48 710.49 621.26
9 6
Working Capital/ Total
0.125 0.191 0.219 0.166 0.240 0.203 0.107
Assets (X1)

Retained Earnings 49.3 87.57 115.13 56.64 46.06 38.55 46.87

559.5 534.5
Total Assets 1,155.22 984.98 861.48 710.49 621.26
9 6
Retained Earnings/ Total
0.043 0.089 0.134 0.080 0.074 0.069 0.088
Assets (X2)

Earnings before Interest

66.61 117.27 155.36 50.54 75.05 60.84 73.58
and Tax
559.5 534.5
Total Assets 1,155.22 984.98 861.48 710.49 621.26
9 6
Earnings before Interest
and Tax/ Total Assets 0.058 0.119 0.180 0.071 0.121 0.109 0.138
(X3)

877.7 877.7
Market Capitalization 877.77 877.77 877.77 877.77 877.77
7 7
Total Liabilities 251.35 235.56 188.45 139.02 89.62 67.38 81.5
Market Capitalisation/ 13.02 10.77
3.492 3.726 4.658 6.314 9.794
Total Liabilities (X4) 7 0

15.96 13.22
5.015 6.253 7.978 8.458 12.913
Final Z-Score 3 4
Safet Safet
Safety Safety Safety Safety Safety y y
Financial Health Zone Zone Zone Zone Zone Zone Zone

The Altman Z-Score is a tool used to assess a company's financial health and the likelihood
of bankruptcy. It combines several financial ratios to provide an overall score. Here's the
analysis based on the provided data:

Working Capital/Total Assets (X1):

This ratio measures the proportion of a company's assets financed by working capital. A
higher ratio indicates better liquidity.

The ratio has been decreasing over the years, which could indicate a decrease in liquidity.

26 | P a g e
Retained Earnings/Total Assets (X2):

This ratio measures the proportion of a company's assets financed by retained earnings. It
reflects the company's ability to generate earnings and reinvest them.

The ratio fluctuates but generally shows a decreasing trend, which could indicate reduced
profitability or increased distribution of earnings.

Earnings before Interest and Tax/Total Assets (X3):

This ratio assesses the company's operating efficiency and profitability relative to its total
assets.

The ratio varies, but there is no consistent trend observed.

Market Capitalization/Total Liabilities (X4):

This ratio compares the market value of the company to its total liabilities, providing an
indication of the market's perception of the company's ability to meet its financial obligations.

The ratio shows an increasing trend over the years, indicating improving market sentiment
regarding the company's ability to cover its liabilities.

Final Z-Score:

The Z-Score is calculated by combining the above ratios. It provides a single measure to
assess the company's overall financial health.

The Z-Score generally increases over the years, indicating improving financial health and a
decreasing risk of bankruptcy.

Interpretation:

A Z-Score above 2.99 is generally considered safe, indicating a low risk of bankruptcy.

The company's Z-Score has consistently been in the safety zone, indicating a relatively low
risk of bankruptcy across all years analyzed.

Overall, the company appears to have maintained a stable financial position with a low risk of
bankruptcy over the years, despite fluctuations in individual ratios. However, it's essential to
consider other factors such as industry trends, market conditions, and potential future risks
when assessing the company's financial health comprehensively.

27 | P a g e
28 | P a g e
 PROFIT & LOSS A/C OF ANJANI PORTLAND
2022-23 2021-22 2020-21 2019-20 2018-19 2017-18
& & & & & &
PARTICULARS
2021-22 2020-21 2019-20 2018-19 2017-18 2016-17
( in %) ( in %) (in %) (in %) (in %) ( in %)
INCOME 0% 0% 0% 0% 0% 0%
REVENUE FROM
OPERATIONS -10% 15% -1% -6% 17% 4%
[GROSS]
Less: Excise/Service
0% 0% 0% 0% -100% -73%
Tax/Other Levies
REVENUE FROM
-10% 15% -1% -6% 21% 16%
OPERATIONS [NET]
TOTAL OPERATING
-10% 15% 0% -7% 22% 16%
REVENUES
Other Income -60% -85% 76% 253% -10% -18%
TOTAL REVENUE -10% 14% 0% -6% 21% 16%
EXPENSES NIL NIL NIL NIL NIL NIL
Cost Of Materials
23% 47% 256% -15% 11% 13%
Consumed
Purchase Of Stock-In
-2% 26% -46% 23% 0% 0%
Trade
Operating And Direct
NIL NIL NIL NIL NIL NIL
Expenses
Changes In Inventories
-
Of FG,WIP And Stock- -72% 65% -265% -45% -54%
1255%
In Trade
Employee Benefit
1% 12% -5% 13% 10% 20%
Expenses
Finance Costs 0% 4289% 97% -81% -72% -34%
Depreciation And
-11% -4% 1% 5% 2% 10%
Amortisation Expenses
Other Expenses -12% 10% -50% -23% 10% 35%
TOTAL EXPENSES 5% 35% -11% -13% 23% 28%
PROFIT/LOSS
BEFORE
EXCEPTIONAL, -141% -52% 60% 73% 3% -38%
EXTRAORDINARY
ITEMS AND TAX
Exceptional Items NIL NIL NIL NIL NIL NIL
PROFIT/LOSS
-141% -52% 60% 73% 3% -38%
BEFORE TAX

29 | P a g e
TAX EXPENSES-
CONTINUED NIL NIL NIL NIL NIL NIL
OPERATIONS
Current Tax -100% -43% 23% 67% 86% -39%
Less: MAT Credit
NIL NIL NIL NIL NIL NIL
Entitlement
-
Deferred Tax -50% -81% 2502% -31% -115%
2981%
Tax For Earlier Years NIL NIL NIL NIL NIL NIL
TOTAL TAX
-108% -14% -29% 72% 10% -1%
EXPENSES
PROFIT/LOSS
AFTER TAX AND
BEFORE -154% -59% 111% 74% -1% -48%
EXTRAORDINARY
ITEMS
PROFIT/LOSS FROM
CONTINUING -154% -59% 111% 74% -1% -48%
OPERATIONS
PROFIT/LOSS FOR
-154% -59% 111% 74% -1% -48%
THE PERIOD

30 | P a g e
Comparative Statement

Income and Revenue:

There's a fluctuating trend in revenue from operations (net), with variations ranging from -
10% to 21%.

Total operating revenues have seen fluctuations, with the most significant increase observed
in 2018-19 & 2017-18.

Other income has been highly volatile, with significant fluctuations from year to year.

Expenses:

Cost of materials consumed has seen substantial fluctuations, especially with a drastic
decrease in 2020-21 & 2019-20.

Employee benefit expenses have been relatively stable, with minor fluctuations.

Finance costs have been highly erratic, with an extraordinary increase in 2021-22 & 2020-21.

Profit/Loss:

The company has experienced significant fluctuations in profit/loss before tax, with a
substantial decrease in 2022-23 & 2021-22.

Tax expenses have also shown fluctuations, with a notable decrease in 2022-23 & 2021-22.

Profit/loss after tax and before extraordinary items have seen drastic changes over the years,
with a significant decrease in 2022-23 & 2021-22.

Overall Trend:

The company's performance seems to be volatile, with fluctuations in both income and
expenses.

Profitability has seen ups and downs over the years, with certain years showing significant
losses.

The company's financial health might be unstable due to the fluctuating nature of its revenue
and expenses.

31 | P a g e
 BALANCE SHEET OF ANJANI PORTLAND
2022-
2021-22 2020-21 2019-20 2018-19 2017-18
23 &
& & & & &
PARTICULARS 2021-
2020-21 2019-20 2018-19 2017-18 2016-17
22 (in
(in %) (in %) (in %) (in %) (in %)
%)
EQUITIES AND
LIABILITIES NIL NIL NIL NIL NIL NIL

SHAREHOLDER'S
NIL NIL NIL NIL NIL NIL
FUND
Equity Share Capital 16% 0% 0% 0% 0% 0%
TOTAL SHARE
16% 0% 0% 0% 0% 0%
CAPITAL
Reserves and Surplus 15% 7% 29% 15% 8% 11%
TOTAL RESERVES AND
SURPLUS 15% 7% 29% 15% 8% 11%

TOTAL
SHAREHOLDERS 15% 6% 26% 13% 8% 10%
FUNDS
NON-CURRENT
LIABILITIES 0% 0% 0% 0% 0% 0%

Long Term Borrowings 3% 0% 0% 0% 0% -100%

Deferred Tax Liabilities
[Net] -5% -9% -33% 42% 26% 28%

Other Long Term

-72% -36% 18% 403% -97% 22%
Liabilities
Long Term Provisions 13% 96% -50% -66% 28% -1%
TOTAL NON-CURRENT
LIABILITIES 2% 1209% -31% 36% -20% -38%

CURRENT LIABILITIES 0% 0% 0% 0% 0% 0%
Short Term Borrowings -76% 0% 0% 0% -100% -20%
Trade Payables 1% 19% -23% -9% 42% 23%
Other Current Liabilities -17% 57% 45% -11% -22% -1%
Short Term Provisions 15% 22% -4% -67% 10% 311%
TOTAL CURRENT
LIABILITIES -39% 146% 18% -11% -11% 3%

TOTAL CAPITAL AND

LIABILITIES -3% 107% 19% 9% 0% 0%

ASSETS 0% 0% 0% 0% 0% 0%
NON-CURRENT
0% 0% 0% 0% 0% 0%
ASSETS
Tangible Assets -7% -7% -8% -5% -11% -1%
Intangible Assets 0% 0% -100% 6700% -50% -33%
Capital Work-In-Progress -88% 70% 152% -94% 71% -48%

32 | P a g e
Other Assets 0% 0% 0% 0% 0% 0%
FIXED ASSETS -8% -7% -8% -6% -10% -2%
Non-Current Investments 0% 0% 0% 0% 0% 0%
Deferred Tax Assets [Net] 0% 0% 0% 0% 0% 0%
Long Term Loans And
Advances 0% 0% 0% 0% 0% 0%

Other Non-Current Assets -5% 14% 0% 27% 6% -13%

TOTAL NON-CURRENT
ASSETS -2% 323% -8% -5% -10% -2%

CURRENT ASSETS 0% 0% 0% 0% 0% 0%
Current Investments 0% 0% 0% 0% 0% 0%
Inventories 36% 2% -31% 9% 17% -8%
Trade Receivables -17% 59% -63% 23% 48% 34%
Cash And Cash
-88% -95% 185% 156% 140% 69%
Equivalents
Short Term Loans And
0% 0% -100% 0 -100% 0%
Advances
Other CurrentAssets -42% -29% 64% -22% -24% -5%
TOTAL CURRENT
ASSETS -13% -68% 56% 39% 27% 7%

TOTAL ASSETS -3% 107% 19% 9% 0% 0%

33 | P a g e
Comparative Statement

Equity and Liabilities:

Shareholder's Fund: The percentage of Equity Share Capital increased by 16% from 2021-22
to 2022-23, showing a significant rise.

Reserves and Surplus: There is a consistent increase in Reserves and Surplus over the years,
with a notable increase of 22% from 2020-21 to 2021-22.

Non-Current Liabilities: There are considerable fluctuations in Other Long Term Liabilities
and Deferred Tax Liabilities [Net] over the years, indicating changes in the company's long-
term financial obligations.

Current Liabilities: Trade Payables and Other Current Liabilities show varying trends over
the years, reflecting changes in short-term financial obligations.

Assets:

Non-Current Assets: Tangible Assets show a consistent decrease over the years, while
Intangible Assets and Capital Work-In-Progress display significant fluctuations.

Current Assets: Inventories have increased notably by 36% from 2021-22 to 2022-23, while
Cash and Cash Equivalents have seen significant fluctuations.

Overall Analysis:

The total capital and liabilities show a notable increase from 2021-22 to 2022-23, suggesting
overall growth and expansion in the company's financial structure.

Total assets also show an increase over the years, indicating growth in the company's asset
base.

Profitability and Financial Health:

The significant fluctuations in various categories indicate changes in the company's financial
health and profitability over the years.

The company's ability to manage its long-term and short-term liabilities, as well as its asset
utilization efficiency, can be further analyzed based on these trends.

34 | P a g e
Areas of Concern:

Fluctuations in certain categories, such as Deferred Tax Liabilities and Intangible Assets, may
require further investigation to understand the underlying reasons and mitigate potential risks.

The company should focus on stabilizing its financial structure and ensuring sustainable
growth in both assets and liabilities.

This analysis provides insights into the financial performance and trends of Anjani Portland
over the specified periods, aiding in decision-making and strategic planning for the
company's future.

35 | P a g e
 ANJANI PORTLAND CEMENTS LTD PIOTROSKI F-SCORE : VALUE INVESTING
2016- 2017- 2018- 2019- 2020- 2021- 2022-
17 18 19 20 21 22 23
PROFITABILITY:
Q1. NET INCOME 1 1 1 1 1 1 0
Q2. CASH FLOW TO FIRM (FCFF) 0 0 0 0 0 1 0
Q3. RETURN ON ASSETS (ROA) 0 0 0 1 1 0 0
Q4. QUALITY OF EARNINGS (ACCURAL) 1 1 1 1 1 1 1
FUNDINGS:
Q5. LEVERAGE (DEBT TO ASSET) 1 1 0 0 0 0 0
Q6. CURRENT RATIO 1 1 1 1 1 0 1
Q7. ISSUANCE OF NEW EQUITY SHARE 1 1 1 1 1 1 0
EFFICIENCY:
Q8. CHANGE IN TOTAL ASSET TURNOVER
0 1 1 0 0 0 0
RATIO
Q9. GROSS MARGIN 1 0 0 0 0 0 0
Piotroski F-Score 6 6 5 5 5 4 2

INTERPRETATION
Based on the Piotroski F-Score calculation for Anjani Portland Cements for the specified
years:

Profitability:
Q1. Net Income: It has been consistently positive until the last reported year (2021-22),
where it dropped to 0.

Q2. Cash Flow to Firm (FCFF): There was only a positive value reported in 2021-22.

Q3. Return on Assets (ROA): Started being positive from 2018-19 onwards, with fluctuations
in the following years.

Q4. Quality of Earnings (Accrual): Remained positive throughout the years.

Fundings:

Q5. Leverage (Debt to Asset): There was some leverage until 2018-19, then it reduced to 0 in
the following years.

Q6. Current Ratio: Mostly positive except for 2021-22.

36 | P a g e
Q7. Issuance of New Equity Share: Positive issuance until 2020-21, then dropped to 0 in the
last reported year.

Efficiency:

Q8. Change in Total Asset Turnover Ratio: Mixed results over the years.

Q9. Gross Margin: Started high but dropped to 0 in the subsequent years.

Piotroski F-Score:

The Piotroski F-Score is a measure of a company's financial strength. It ranges from 0 to 9,

with higher scores indicating stronger financials. The score is calculated based on certain
financial metrics, and in this case, it has shown a decline from 6 to 2 over the years.

Findings:

The company has shown a mixed performance in terms of profitability, with some
fluctuations in net income and cash flow.

Fundings have seen a reduction in leverage and issuance of new equity shares in recent years.

Efficiency metrics have shown mixed results with fluctuations in asset turnover and gross
margin.

The Piotroski F-Score has been declining over the years, indicating a weakening financial
position according to the specified metrics.

Overall, the company's financial performance appears to have some inconsistencies and
weakening trends, as indicated by the declining Piotroski F-Score. Further analysis and
investigation into the reasons behind these fluctuations would be necessary to assess the
company's financial health accurately.

37 | P a g e
 Anjani Portland Dupont Analysis
Return on Equity (ROE)
2022- 2021- 2020- 2019- 2018- 2017-
2016-
23(in 22(in 21( in 20(in 19(in 18(in
17(in Cr.)
Cr.) Cr.) Cr.) Cr.) Cr. cr.)
Net Profit -18.92 34.97 84.98 40.35 23.16 23.44 44.88
Shareholders' Equity 29.37 25.29 25.29 25.29 25.29 25.29 25.29
Return on Equity -0.541 0.412 2.106 1.742 0.988 0.522 1.775

ROE - Dupont Equation

2022- 2021- 2020- 2019- 2018- 2017-
2016-
23(in 22(in 21( in 20(in 19(in 18(in
17(in Cr.)
Cr.) Cr.) Cr.) Cr.) Cr. cr.)
Net Profit -18.92 34.97 84.98 40.35 23.16 23.44 44.88
Revenue 422.59 471.23 414.15 412.88 412.88 361.3 361.3
Net Profit Margin (A) -0.045 0.074 0.205 0.098 0.056 0.065 0.124

Revenue 422.59 471.23 414.15 412.88 412.88 361.3 361.3

Total Assets 938.65 963.59 465.84 392.03 358.34 359.72 359.17
Asset Turnover Ratio (B) 0.450 0.489 0.889 1.053 1.152 1.004 1.006

Total Assets 938.65 963.59 465.84 392.03 358.34 359.72 359.17

Shareholders' Equity 29.37 25.29 25.29 25.29 25.29 25.29 25.29
Equity Multiplier (C) 31.959 38.102 18.420 15.501 14.169 14.224 14.202

Return on Equity (A*B*C) -0.644 1.383 3.360 1.595 0.916 0.927 1.775

Return on Asset
2022- 2021- 2020- 2019- 2018- 2017-
2016-
23(in 22(in 21( in 20(in 19(in 18(in
17(in Cr.)
Cr.) Cr.) Cr.) Cr.) Cr. cr.)
Net Profit -18.92 34.97 84.98 40.35 23.16 23.44 44.88
Total Assets 938.65 963.59 465.84 392.03 358.34 359.72 359.17
Return on Asset -2% 4% 18% 10% 6% 7% 12%

ROA-Dupont Equation
2022- 2021- 2020- 2019- 2018- 2017-
2016-
23(in 22(in 21( in 20(in 19(in 18(in
17(in Cr.)
Cr.) Cr.) Cr.) Cr.) Cr. cr.)
Net Profit -18.92 34.97 84.98 40.35 23.16 23.44 44.88
Revenue 422.59 471.23 414.15 412.88 412.88 361.3 361.3
Net Profit Margin (A) -0.045 0.074 0.205 0.098 0.056 0.065 0.124

Net Profit -18.92 34.97 84.98 40.35 23.16 23.44 44.88

Total Assets 938.65 963.59 465.84 392.03 358.34 359.72 359.17
Asset Turnover Ratio (B) -0.0202 0.0363 0.1824 0.1029 0.0646 0.0652 0.1250
Return on Asset (A*B) 0.0009 0.0027 0.0374 0.0101 0.0036 0.0042 0.0155

38 | P a g e
The DuPont analysis breaks down the return on equity (ROE) and return on assets (ROA)
into their component parts, allowing for a more in-depth understanding of a company's
performance. Let's interpret the provided data:

Return on Equity (ROE) Analysis:

The ROE is calculated by dividing the net profit by the shareholders' equity.

In the years provided:

The ROE fluctuates significantly, with negative ROE in 2022-23, 2019-20, and 2018-19.

Positive ROE is observed in other years, ranging from 0.412% to 2.106%.

DuPont ROE Analysis:

This analysis breaks down ROE into three components: net profit margin, asset turnover
ratio, and equity multiplier.

The net profit margin indicates the profitability of the company's operations.

The asset turnover ratio measures how efficiently the company utilizes its assets to generate
revenue.

The equity multiplier reflects the proportion of assets financed by equity.

In the years provided:

The negative ROE in 2022-23 is largely influenced by the negative net profit margin and a
high equity multiplier.

Positive ROE in other years is driven by positive net profit margins, favorable asset turnover
ratios, and equity multipliers.

Return on Asset (ROA) Analysis:

The ROA is calculated by dividing the net profit by total assets.

In the years provided:

The ROA fluctuates, ranging from -2% to 18%.

Negative ROA is observed in 2022-23, while positive ROA is observed in other years.

DuPont ROA Analysis:

39 | P a g e
Similar to DuPont ROE analysis, this breaks down ROA into net profit margin and asset
turnover ratio.

In the years provided:

The net profit margin and asset turnover ratio contribute to the overall ROA, with varying
levels of influence across years.

Interpretation:

The negative ROE and ROA in certain years (2022-23) indicate financial challenges or
inefficiencies within the company.

Positive ROE and ROA in other years suggest profitability and efficiency.

Analyzing the components of ROE and ROA using DuPont analysis helps identify areas of
strength or weakness within the company's operations, profitability, and financial structure.

Overall, the company's performance appears mixed over the years, highlighting the
importance of a comprehensive analysis of financial metrics to assess its financial health
accurately.

40 | P a g e
 Altman Z-score Analysis Table of
Anjani Portland Cements (figures in
crores)

Mar Mar Mar- Mar- Mar- Mar- Mar-

Particulars
-23 -22 21 20 19 18 17
- -
Working Capital 66.2 142. 166.06 87.76 31.87 -3.97 -7.46
1 5
938. 963.
Total Assets 465.84 392.03 392.03 359.72 359.17
65 59
- -
Working Capital/ Total Assets 0.07 0.14 0.356 0.224 0.081 -0.011 -0.021
(X1) 1 8

-
34.9
Retained Earnings 18.9 84.98 40.35 23.16 23.44 44.88
7
2
938. 963.
Total Assets 465.84 392.03 392.03 359.72 359.17
65 59
-
Retained Earnings/ Total 0.03
0.02 0.1824 0.1029 0.0591 0.0652 0.1250
Assets (X2) 63
02

-
Earnings before Interest and Tax 20.1 49.1
1 4 101.52 63.56 36.65 35.68 57.19
938. 963.
Total Assets
65 59 465.84 392.03 392.03 359.72 359.17
-
Earnings before Interest and 0.02 0.05
Tax/ Total Assets (X3) 1 1 0.218 0.162 0.093 0.099 0.159

539. 539.
Market Capitalization 539.17 539.17 539.17 539.17 539.17
17 17
938. 963.
Total Liabilities 465.84 392.03 358.34 359.72 359.17
65 59
Market Capitalization/ Total 0.57 0.56
1.157 1.375 1.505 1.499 1.501
Liabilities (X4) 4 0

-
0.07 5.6129 4.3376 2.9339 2.3803 2.9173
0.06
841 4 7 9 8 3
Final Z-Score 928
Distr Dist
ess ress Safety Safety Safety Safety Safety
Financial Health zone zone Zone Zone Zone Zone Zone

41 | P a g e
Based on the Altman Z-Score analysis provided:

Working Capital/Total Assets (X1):

The ratio has been fluctuating over the years, with negative values in some years.

Negative values suggest that working capital is insufficient to cover short-term liabilities.

Retained Earnings/Total Assets (X2):

The ratio also fluctuates but generally shows a positive trend, indicating that a significant
portion of assets is financed by retained earnings.

Higher values suggest better financial stability.

Earnings before Interest and Tax/Total Assets (X3):

This ratio measures the company's operating efficiency and profitability relative to its total
assets.

Fluctuations are observed, but positive values indicate profitability.

Market Capitalization/Total Liabilities (X4):

This ratio assesses the market's perception of the company's ability to cover its liabilities.

Fluctuations are observed, but values above 1 suggest a positive market perception.

Final Z-Score:

The Z-Score is calculated by combining the above ratios. It provides a single measure to
assess the company's overall financial health.

Negative values or values close to zero indicate financial distress or insolvency risk.

The company shows negative Z-Scores in some years, indicating financial distress, and
positive Z-Scores in others, indicating relative financial stability.

Interpretation:

The company's financial health appears unstable, with some years falling into the "Not Safe"
zone according to the Altman Z-Score model.

42 | P a g e
Years with negative Z-Scores (like -0.06928) suggest a higher risk of financial distress or
bankruptcy.

It's essential for the company to address its working capital deficiencies, improve
profitability, and maintain positive equity to enhance its financial stability and reduce the risk
of insolvency.

43 | P a g e
CONCLUSION
Based on the financial performance analysis of Deccan Cement Ltd and Anjani Portland
Cements, several conclusions can be drawn:

Financial Health:

Both companies exhibit varying degrees of financial health over the analyzed periods.

Anjani Portland Cements generally demonstrates better financial stability, as indicated by its
consistent Altman Z-Score in the safety zone.

Deccan Cement Ltd, on the other hand, shows fluctuating financial health, with periods of
financial distress indicated by negative Z-Scores.

Profitability:

Anjani Portland Cements generally maintains positive profitability metrics, as evidenced by

positive returns on equity (ROE) and assets (ROA).

Deccan Cement Ltd exhibits mixed profitability, with fluctuating ROE and ROA, including
periods of negative returns.

Operating Efficiency:

Anjani Portland Cements appears to maintain stable operating efficiency, as indicated by

consistent or improving ratios such as net profit margin and asset turnover.

Deccan Cement Ltd may face challenges in operating efficiency, as suggested by fluctuations
in profitability ratios and working capital deficiencies.

Market Perception:

Anjani Portland Cements seems to enjoy relatively stable market perception, as indicated by
consistent market capitalization to total liabilities ratios.

Deccan Cement Ltd's market perception may be more volatile, as suggested by fluctuations in
market capitalization to total liabilities ratios.

Anjani Portland Cements emerges as a more stable and consistent performer in terms of
financial health, profitability, and market perception.

44 | P a g e
Overall Performance:

Deccan Cement Ltd, while showing strengths in certain areas, may need to address
weaknesses in financial stability, profitability, and operating efficiency to enhance overall
performance.

In conclusion, while both companies operate in the cement industry, Anjani Portland Cements
appears to have a more favorable financial performance compared to Deccan Cement Ltd.
However, further analysis, including industry comparisons, qualitative factors, and future
outlook, would provide a more comprehensive understanding of their financial performance.

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 REFERENCE

• Bhayani, S. J. (2010). Determinant of profitability in Indian cement industry: An economic

analysis. South Asian Journal of Management, 17(4), 6-20.
• Chester, J. R. E., & Pillai, K. R. Performance of Indian Cement Companies amidst Global
Turmoil: an EVA Analysis.
• Muthusamy, A., & Karthika, S. (2019). Financial Performance of Selected Cement
Companies in India. CLEAR International Journal of Research in Commerce &
Management, 10(9).
• Omrani, S., Jafari, M., & Mansori, A. (2019). Analysis of financial performance of cement
industry manufacturing companies in Tehran stock exchange using the FAHP technique and
the TOPSIS method. Independent Journal of Management & Production, 10(2), 512-536.
• Singh, G. (2022). Study of Financial Performance of Cement Industry by Using DU-Pont
Analysis. Adhyayan: A Journal of Management Sciences, 12(02), 54-58.

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