Interim Report

Semester-IV

(FINANCIAL ANALYSIS OF ACC LTD)

NAME JAYALAKASHMI D M
USN 231VMBR01911
Elective FINANCE
Date of Submission 11-04-2025
 Objectives of the Study

 To assess the company's liquidity, profitability, and solvency position through a detailed
financial statement analysis.
 To identify key trends and patterns in ACC Ltd.'s financial health and suggest
recommendations for improving financial strategies and operations.
 To compare ACC Ltd.’s financial performance with industry benchmarks and its key
competitors to assess its market position.
 To analyse the impact of economic factors and business strategies on the financial
outcomes of ACC Ltd. and identify areas of potential risk or growth.

Scope of the Study

 Subject Matter: The study focuses on the financial performance and health of ACC Ltd.,
analyzing key financial statements such as the balance sheet, income statement, and cash
flow statement.
 Time Frame: The analysis covers a period from [Insert Starting Month/Year] to [Insert
Ending Month/Year], depending on the duration of the study and the time spent gathering
and analyzing the financial data.
 Geographic Location: The study is limited to ACC Ltd.'s operations within India, with a
focus on its financial performance within the domestic market.

Methodology

 Research Approach: The study follows a descriptive research approach to analyze and
interpret the financial data of ACC Ltd. over a specific time frame.
 Data Collection: The financial data has been collected from secondary sources, including
ACC Ltd.’s annual reports, financial statements, and data available from reliable financial
databases.
 Analysis Tools: The financial performance has been evaluated using financial ratio
analysis, including ratios like profitability, liquidity, solvency, and efficiency ratios.
 Benchmarking: A comparison of ACC Ltd.'s financial performance has been made with
industry standards and key competitors to assess its market position.
 Time Period: The analysis spans over a specific period of time (e.g., the last 5 years) to
track trends and patterns in ACC Ltd.’s financial health.
 Statistical Tools: Relevant financial analysis techniques and tools, such as trend analysis
and horizontal/vertical analysis, were used to interpret the data.

Research Design
Objective Setting

 The first step is to clearly define the objectives of your study. For ACC Ltd, this could
include evaluating the company's overall financial health, identifying trends in
profitability, liquidity, and solvency, and comparing these metrics to industry standards
or competitors.
 Example Objective: To analyze the financial performance of ACC Ltd over the past five
years and assess its position in the cement industry.

Data Collection

 The primary data for this research will come from ACC Ltd 's financial statements
(income statements, balance sheets, and cash flow statements). You will gather data from
sources like ACC Ltd ’s annual reports, financial databases (like Bloomberg or Reuters),
or public filings (if applicable).
 Example: Extract financial data from ACC Ltd ’s annual reports for the last 5 years.

Selection of Financial Ratios

 Choose the key financial ratios to analyse ACC Ltd’ s performance. Focus on common
financial analysis ratios such as:
Profitability Ratios (e.g., Gross Profit Margin, Net Profit Margin)
Liquidity Ratios (e.g., Current Ratio, Quick Ratio)
Solvency Ratios (e.g., Debt-to-Equity Ratio)
Efficiency Ratios (e.g., Asset Turnover Ratio)
 Example: Calculate and analyse the profitability and liquidity ratios to assess ACC Ltd’ s
financial stability.
 Trend Analysis

 Conduct a trend analysis to see how ACC Ltd’ s financial performance has changed over
time. This will help identify patterns (positive or negative) and provide insights into the
company's financial trajectory.
 Example: Evaluate the change in net profit, revenue, and assets over the last 5 years.

Industry Comparison

 Compare ACC Ltd’ s financial performance with industry averages or major competitors
in the cement sector. This will allow you to see how well ACC Ltd is performing relative
to the market and peers.
 Example: Compare the profitability ratios of ACC Ltd with industry leaders like
UltraTech Cement.

Data Interpretation

 After calculating the financial ratios and conducting trend analysis, interpret the findings.
Focus on what the numbers mean in terms of ACC Ltd’s performance, strengths, and
weaknesses.
 Example: Interpret a declining current ratio as a potential liquidity concern for ACC Ltd.

Conclusion and Recommendations

 Based on your analysis, provide a clear conclusion about the financial health of ACC Ltd.
Offer recommendations for improvement if needed. The recommendations could address
areas like cost management, debt management, or potential growth strategies.
 Example: Recommend ACC Ltd focus on reducing its debt load to improve solvency
ratios and reduce financial risk.
 Limitations of Study

 Dependence on Secondary Data

The analysis is entirely based on secondary data collected from ACC Ltd’ s published
annual reports and financial statements. Any inaccuracies or omissions in these sources
could affect the reliability of the analysis.

 Time Frame

The study focuses on a specific time period (e.g., the past 5 financial years). It may not
reflect long-term trends or historical performance beyond this range.

 Lack of Qualitative Insights

The research does not consider qualitative factors such as changes in management,
company policies, employee satisfaction, or market reputation, which can also
significantly impact financial performance.

 External Economic Factors Not Considered

Broader economic influences such as inflation, interest rates, and government regulations
affecting the cement industry are not included in the analysis, which may influence ACC
Ltd’ s financial outcomes.

 No Forecasting or Predictive Analysis

The study is descriptive in nature and does not include predictive analysis or financial
forecasting, which could have provided insights into ACC Ltd’ s future performance.
 Data Collection Method

 Use of ACC Ltd’ s Annual Reports

Technique: I collected the primary financial data directly from ACC Ltd' s annual reports
available on their official website. These reports provided key financial documents like
the income statement, balance sheet, and cash flow statement for the past 5 years.
Tools: I used the ACC Ltd website and Google to access these reports. I manually
downloaded the documents and extracted the necessary data for analysis.

 Accessing Financial Databases for Additional Information

Technique: To complement the annual reports, I accessed additional financial data and
performance metrics from financial data platforms like Money control and Yahoo
Finance. These sources helped provide a broader perspective on the company’s stock
performance and other key financial figures.
Tools: I used Money control and Yahoo Finance websites to look up the latest data on
ACC Ltd’ s financials, including stock price trends, earnings reports, and competitor
comparisons.

 Using Microsoft Excel for Data Analysis

Technique: I used Microsoft Excel to calculate key financial ratios like profitability,
liquidity, and solvency ratios. I also used Excel to track financial trends over time,
creating charts to visualize the company’s performance.
Tools: Excel was the primary tool I used for all the calculations, creating tables, and
generating charts to visualize financial data.

 Industry Comparisons Using Publicly Available Reports

Technique: To understand ACC Ltd’ s standing in the industry, I referred to industry

Technique: I also referred to investor presentations and press releases available on ACC
Ltd’ s official website to gather additional insights into their financial strategy,
investments, and future outlook. These resources helped me understand how ACC Ltd
communicated its financial goals and challenges.
Tools: I used the ACC Ltd investor relations section on their website to access and
download their most recent investor presentations and press releases.

Data Analysis Tools

For this project, I personally handled the entire financial analysis process using basic and
easily accessible tools, as I wanted to keep it simple yet effective. Here’s how I
approached the data analysis

 Microsoft Excel

I used Microsoft Excel as my primary tool for all financial calculations and analysis.
After collecting data from ACC Ltd’ s annual reports, I manually entered key figures
such as revenue, net profit, total assets, liabilities, and shareholder equity into Excel.
I used basic formulas (like percentage change, ratios, averages) to calculate important
financial ratios such as:
Profitability Ratios (Net Profit Margin, Return on Equity)
Liquidity Ratios (Current Ratio, Quick Ratio)
Solvency Ratios (Debt-to-Equity Ratio)
Efficiency Ratios (Asset Turnover Ratio)
I also created trend charts to visualize changes over the last 5 years. This helped me
clearly see patterns like revenue growth, profitability shifts, and changes in financial
stability.

 Manual Comparison and Benchmarking

I didn’t use any advanced statistical software or tools. Instead, I manually compared ACC
Ltd’ s financial ratios with those of competitors like UltraTech Cement using data
available on websites like Money Control and Yahoo Finance.
 Basic Graphs and Visuals

In Excel, I used simple bar graphs and line charts to represent key financial trends. For
example, I created a line graph to track ACC Ltd’ s net profit over the years and bar
graphs to show comparison in liquidity and solvency ratios.

 No Use of Advanced Statistical Tools

I did not use any complex statistical software like SPSS, R, or Python, as the focus of the
project was on basic financial analysis using straightforward methods.
My aim was to keep the analysis practical and accessible, especially for someone
working on an individual academic project without access to premium tools.

This approach worked well for me and helped me gain a better understanding of financial
statements and how to evaluate a company’s performance using simple tools. It also
showed that with basic Excel skills and proper data, meaningful financial insights can
still be drawn.