Analytical study of profitability of Saurastra cement Ltd.

Bc. Darshan Pareshkumar Vyas

Bachelor's thesis

Abstract:

This thesis deals with assessing the financial position and performance of SaurashtraCement Limited, India's largest cement manufacturing company. The literature review provides information about various financial statements and an overview of the cement industry in India. The practical part analyses the financial position, which is represented bythe Balance sheet, and the financial performance, which is represented by the Statement of profit or loss of the company by using vertical and horizontal analysis of these statements covering financial years 2016-2021 with the focus on the representation and changes of thereported assets, liabilities, expenses, revenues and profit for the chosen period to identify the potential financial problems and the most significant factors influencing the yield. The selected profitability ratio is also calculated to measure the company's profitability. The findings showed the Experienced a slight decline (-0.79%) from 2017 to 2021, indicating reduced investment in physical assets during this period. In Financial Assets, Non-current investments showed a significant shift, decreasing by 100% in 2018-19. This could be a strategic reallocation of financial resources. In Current Assets, Cash and bank balances demonstrated substantial volatility, increasing by 2174.24% in 2021. This could imply a change in the company's liquidity strategy. Witnessed a sharp increase of 117.38% in 2020, followed by a significant decline of -43.84% in 2021. This may indicate inventory management challenges. Other Non-current Assets Showed a notable increase of 56.30% in 2017-18, potentially due to strategic investments. Findings from this analysis reveal intricate details about Saurashtra Cement Limited's financial landscape. The conclusion synthesizes these findings, providing a succinct overview of the company's financial position and performance over the specified period. It also underscores the pivotal factors influencing the company's profit, offering valuable insights for stakeholders and decision- makers. Further, the thesis also describes findings based on analysis. Besides results, the conclusion is also formulated, which gives insight into the overall financial position and financial performance of the SCL company for a given period. It also represents significant factors influencing the profit of Saurashtra Cement Limited.

Keywords

profit, financial statements, financial analysis, financial position, balance sheet, assets, liabilities, equity, financial performance, Income statement, expenses, revenues

Language used: English

Date on which the thesis was submitted / produced: 2. 12. 2023

Thesis defence

• Date of defence: 8. 2. 2024
• Supervisor: Ing. Jiří Mach, Ph.D.
• Reader: Pavel Kotyza, Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Bachelor programme:
Business Administration