Financial Performance of Cement Industry

P. Chandrasekar¹ and Dr. S. Ramanath²

¹Research Scholar, P.G. and Research Department of Commerce, National College (Autonomous), Trichy,

Tamil Nadu, India.

²Associate Professor, P.G. and Research Department of Commerce, National College (Autonomous), Trichy, Tamil Nadu, India.

*Corresponding Author E-mail: pcsekar1958@gmail.com

ABSTRACT:

India is the second largest producer of cement in the world. The production of cement in India has increased at a compound annual growth rate of 9.7 per cent to reach 272 million tones in the period 2006–2013. It is expected to touch 407 million tones by 2020.The globally-competitive cement industry in India continues to witness positive trends such as cost control, continuous technology up gradation and increased construction activities.

With the best limestone deposit an available it is able to produce the high quality cement of various grades and supplies government department and public. Wide application has been received from various quarters for its ARASU brand cement being marketed in Tamil Nadu and Kerala. Capacity enhancement at Ariyalur factory is also proposed of late it operated exceedingly well producing more than its capacity.

The comparative statement analysis to the Tamil Nadu Cement Corporation Limited in analysis to that concern will be process in profitability or not. So the comparative balance sheet is prepared in the compared with previous years. Every company followed to the particular process or method will be every financial year. So the company changes with our production method and marketing style. So the company earnings to the profit in future year. This every year the company followed to the benefit of the process.

INTRODUCTION:

Early, millions of Indian stays to find their buildings. Across the country, building construction using important things cement. In production of cement and cement based products and primarily cater to the needs of government departments. Limestone being the main raw material, the company acquired and researched enough limestone bearing land in and around Alangulam and Ariyalur which are sufficient to run the cement plants for decoders to come hence the role of Tamil Nadu cement corporation Limited (TANCEM) in the development of state is in immense.

Furthermore, major cement manufacturers in India are progressively using other alternatives such as bio energy as fuel for their furnace. This is not only helping to bring down production costs of cement companies, but is also proving effective in reducing emissions. With the ever-increasing industrial activities, real estate, construction and infrastructure, in addition to the various Special Economic Zones being developed across the country, there is a demand for cement

Ariyalur is one of the districts in Tamil Nadu state. It is rich in limestone resources. Big industrial houses like Birlas (Grasim Industries), India cement, Dalmia cement, and Madras cement have their cement units here. Tamil Nadu government’s TANCEM factory is in Ariyalur. Elakurichi is an important tourist place.

Five major cement factories in the district reveal the abundant of deposit of limestone. The availability of lignite at Jayankondam and nearby places is a gift by Mother Nature. The fossil is said to have been a national asset according to geologists.

THE CEMENT CITY

Ariyalur is famous for its cement industries in and around it. This is possible due to its immense limestone store which is the potential raw material for cement industries. In particular the Arasu cements, the Birla cements, the Sakthi cements, the Ramco cements, etc. are situated in Ariyalur. So Ariyalur is one of the busiest transport cities.

PROFILE OF THE ORGANISATION

The TANCEM was established in Feb’ 1976 as a wholly, owned subsidiary of TIDCO. Future, all the shares were transferred to Government of Tamil Nadu and now functioning under the control of industries Department. The corporation is headed by the Chairman cum Managing Director and IAS official.

TANCEM owns two cement units, one at Alangulam and another one at Ariyalur. In addition to cement units, TANCEM is having one Asbestos sheet unit at Alangulam, and stoneware pipe unit at Virudhachalam.

TANCEM’s corporate office is functioning at 735, Annasalai, Chennai-2. TANCEM’s Ariyalur unit was commissioned on 1^st August 1979 and commercial production commenced on 9^th September 1979. This Ariyalur unit is having two kilns of 750 TPD capacities each and production clinker of 1500 Metric Tones per day in total. The Brand Name is Arasu Cement. Now, TANCEM Ariyalur unit has installed additional ESP at a total cost of RS.3.00crores for controlling the dust emission as per the norms of Tamil Nadu pollution control Board.

The cement produced in this plant is stacked in four cement silos and fed to packing plant from where the same is packed with the help of Electronics packer for meeting out the dispatch program me in a steam lined manner to maintain correct weight which meets the customer satisfaction. The unit is producing three kinds of cement OPC (53 Grade), OPC (43 Grade), and PPC. Cement is dispatched through Railway (Board Gauge) and Road movements.

Tamilnadu cement corporation (TANCEM), a wholly owned Government of Tamilnadu undertaking, started business from 1^st April 1976 with an authorized share capital of Rs.10crores taking over cement plant at Alangulam and setting up another plant at Ariyalur in the year 1979.

TANCEM, as its expansion and conversion activities, set up Asbestos Sheet unit at Alangulam during 1981 and an Asbestos pressure pipe plant at Mayanur during 1983. TANCEM also took over during 1989, a stoneware pipe plant from TACEL with a view to provide employment to the retrenched employees.

It is estimated that the country requires about US$ 1 trillion in the period FY 2012-13 to FY 2016-17 to fund infrastructure such as ports, airports and highways to boost growth, which promises a good scope for the cement industry.

India's potential in infrastructure is vast. It has the capacity to become the world's third largest construction market by 2025, adding 11.5 million homes a year to become a US$ 1 trillion a year market, according to a study by Global Construction Perspectives and Oxford Economics. This opens up a tremendous window of opportunity for the country’s cement industry.

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 2013-14 to FY 2015-16, 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).

CEMENT PRODUCTION AND GROWTH

Domestic demand plays a major role in the fast growth of cement industry in India. In fact the domestic demand of cement has surpassed the economic growth rate of India. The cement consumption is expected to rise more than 22% by 2010-11 from 2008-09. In cement consumption, the state of Maharashtra leads the table with 12.18% consumption, followed by Uttar Pradesh. In terms of cement production, Andhra Pradesh leads the list with 14.72% of production, while Rajasthan remains at second position.

The production of cement in India grew at a rate of 9.1% during 2007-2008 against the total production of 147.8 MT in the previous fiscal year. During April to October 2009-2010, the production of cement in India was 101.04 MT comparing to 95.05 MT during the same period in the previous year. During October 2010, the total cement production in India was 12.37 MT compared to a production of 11.61 MT in the same month in the previous year. The cement companies are also increasing their productions due to the high market demand. The cement companies have seen a net profit growth rate of 85%. With this huge success, the cement industry in India has contributed almost 8% to India’s economic development.

· Prism Cement Ltd has become the first Indian company to get the Quality Council of India's (QCI) certification for its ready-mix 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.

References: Media Reports, India in Business, Cement Corporation of India, Department of Industrial Policy and Promotion (DIPP), Cement Manufacturers Association (CMA)

ARIYALUR CEMENT WORKS

Commercial production in this unit was commenced during September 1979. Set up with a capital outlay of Rs.29crore and a rated capacity of 5lakh tones per annum of cement, this unit provides direct employment for 1000 employees.

With the best limestone deposit available, it is able to produce the high quality cement of various grades and supplies to Government Departments and Public. Wide appreciations have been received from various people for its ARASU brand cement being marketed in Tamil Nadu and Kerala. Capacity enhancement at Ariyalur factory is also proposed. Of late, it operates exceedingly well, producing more than its capacity.

ALANGULAM CEMENT WORKS

Alangulam in Virudhunagar District, Commercial production was commenced in 1970-71 with capital outlay of Rs.6.66 crores. With the rated capacity of 4lakh tones per annum, this unit provides direct employment to 1600 people and indirect employment to 3000 people. The unit manufactures and markets ARASU 53 Grade, 43 Grade, OPC cement in Tamil Nadu and Kerala. Major consumption is by Government Department for their construction activities such as Bridges, Dams, and High raised Multistory Buildings etc. It has a wide network of stockiest both in Tamilnadu and Kerala. Modernization of plant is on.

OBJECTIVES OF THE STUDY:

§ To study the comparative Statement analysis with reference to Tamil Nadu Cement Corporation Limited, Ariyalur.

§ To measure the efficiency of the company for the upcoming years.

§ To study the relationship between different financial variables effecting the solvency and profitability’s position of the company.

§ To know the effective utilization of old funds.

§ Correlating the change in working capital with respect to the worth of the company.

§ To compare the financial position of various years of the company (2006 – 2007 to 2010 – 2011).

RESEARCH METHODOLOGY:

Research is an art of scientific investigation. It is a scientific and systematic search for pertinent on a specific topic.

TOOLS USED IN THE DATA ANALYSIS:

The following tools are used for the purpose of analyzing the comparative statement analysis is as follows.

· Comparative Balance Sheet

DATA COLLECTION METHOD

This study is purely based on the secondary data. The data was collected from the published financial reports for the six year from the March 31^st 2006 – 2007 to 2010 – 2011.

ANALYSIS RESEARCH

This objective of this research is to use the available information and analyze the information to make a critical evaluation of the material. In this study the data is available in the company annual report and websites.

LIMITATIONS OF THE STUDY

ü Tamil Nadu Cement Corporation Limited being a large concern the entire financial data could not be covered in a limited period.

ü It is very hard to know the entire financial analysis/statement is followed in Tamil Nadu Cement Corporation Limited.

ü Due to time and cost Constrains, the study was limited to Ariyalur District.

ü The data collected for the study was totally an integral nature.

Comparative Balance Sheet as on 31^st March 2006-2007

PARTICULARS	2006	2007	INC/ DEC	%
SOURCES OF FUNDS:
1.SHAREHOLDERS FUND
A. Reserves and surplus	748719183	788033825	(+)39314642	(+)52.50
Less: I O G	479641441	510692320	(+)31050879	(+)06.47
Total	269077742	277341505	(+)8263763	(+)03.07
2.LOANS FUNDS
A. Secured Loans	8524800	4524800	(+)4000000	(+)46.92
B. Unsecured Loans	524724554	524724554
3.DEFERRED TAX LIABILITY	0	0	0	0
Total Loans fund	533249354	529249354	(-)4000000	(-)00.75
TOTAL	802327096	806590859	(+)4263713	(+)00.53
APPLICATION OF FUNDS
1.FIXED ASSETS
A. Grass Block	680210090	669681543	(-)10528547	(-)01.55
B. Less: Depreciation	429442857	433697437	(+)4254580	(+)00.99
C. Net Block	250767233	235984106	(-)14783127	(-)00.58
D. Capital work-in-progress	26974725	27493558	(+)518833	(+)01.92
Total Fixed Assets	277741958	263477664	(-)14264294	(-)05.13
2.CURRENT ASSETS, LOANS AND ADVANCES
A. Inventories	98297716	97081130	(-)1216586	(-)12.37
B. Sundry Debtors	498284139	462678006	(-)35606133	(-)71.45
C. Cash and Bank balance	61713901	108892902	(+)47179001	(+)76.44
D. Loan and Advance	84955796	87644384	(+)2688588	(+)31.64
E. Other Current Assets	4025663	4122100	(+)96497	(+)23.97
Total Current Assets	747277215	760418522	(+)13141307	(+)23.97
Less: Total Current Liabilities and Provision	224723108	218087141	(-)6635967	(-)02.95
Total	522554107	542331381	(+)19777274	(+)03.78
3. Outstanding Expenses (miscellany exp)	2031031	781814	(-)1249217	(-)61.50
TOTAL	802327096	806590859	(+)4263713	(+)00.53

Comparative Balance Sheet as on 31^st March 2007-2008

PARTICULARS	2007	2008	INC / DEC	%
SOURCES OF FUNDS:
1.SHAREHOLDERS FUND
A. Reserves and surplus	788033825	924853467	(+)136819642	(+)17.36
Less: I O G	510692320	667117341	(+)156425021	(+)30.63
Total	277341505	257736126	(+)19605379	(-)07.07
2.LOANS FUNDS
A. Secured Loans	4524800	0	(-)4524800	0
B. Unsecured Loans	524724554	524724554	0	0
3.DEFERRED TAX LIABILITY	0	0	0	0
Total Loans fund	529249354	524724554	(-)4524800	(-)00.85
TOTAL	806590859	782460680	(-)24130179	(-)03.00
APPLICATION OF FUNDS
1.FIXED ASSETS
A. Grass Block	669681543	670717131	(+)1035588	(+)00.15
B. Less: Depreciation	433697437	448163935	(+)14466498	(+)03.33
C. Net Block	235984106	2225533196	(-)13430910	(-)05.69
D. Capital work-in-progress	27493558	35904882	(+)8411324	(+)30.59
Total Fixed Assets	263477664	258458078	(-)5019586	(-)01.91
2.CURRENT ASSETS, LOANS AND ADVANCES
A. Inventories	97081130	122128776	(+)25047646	(+)25.80
B. Sundry Debtors	462678006	429647827	(-)33030179	(-)07.14
C. Cash and Bank balance	108892902	120426620	(+)11533718	(+)10.59
D. Loan and Advance	87644384	113997847	(+)26353463	(+)30.06
E. Other Current Assets	4122100	0	(-)4122100	0
Total Current Assets	760418522	786201070	(+)25782548	(+)03.39
Less: Total Current Liabilities and Provision	218087141	262327735	(+)44240594	(+)20.29
Total	542331381	523873335	(-)18458046	(-)03.40
3. Outstanding Expenses (miscellany exp)	781814	129267	(-)652547	(-)83.46
TOTAL	806590859	782460680	(-)24130179	(-)03.00

Comparative Balance Sheet as on 31^st March 2008-2009

PARTICULARS	2008	2009	INC / DEC	%
SOURCES OF FUNDS:
1.SHAREHOLDERS FUND
A. Reserves and surplus	924853467	1170316598	(+)245463131	(+)26.54
Less: I O G	667117341	1001635816	(+)334518475	(+)50.14
Total	257736126	168680782	(-)89055344	(-)34.55
2.LOANS FUNDS
A. Secured Loans	0	0	0	0
B. Unsecured Loans	524724554	459481554	(-)65243000	(-)12.43
3.DEFERRED TAX LIABILITY	0	0	0	0
Total Loans fund	524724554	459481554	(-)65243000	(-)12.43
TOTAL	782460680	628162336	(-)154298344	(-)19.71
APPLICATION OF FUNDS
1.FIXED ASSETS
A. Grass Block	670717131	684249466	(+)13532335	(+)02.02
B. Less: Depreciation	448163935	461824557	(+)13660622	(+)03.04
C. Net Block	2225533196	222424909	(-)128287	(-)00.06
D. Capital work-in-progress	35904882	32379422	(-)3525460	(-)09.82
Total Fixed Assets	258458078	254804331	(-)3653747	(-)01.41
2.CURRENT ASSETS, LOANS AND ADVANCES
A. Inventories	122128776	132990382	(+)10861606	(+)08.89
B. Sundry Debtors	429647827	370407288	(-)59240539	(-)13.79
C. Cash and Bank balance	120426620	21216217	(-)99210403	(-)82.38
D. Loan and Advance	113997847	107233324	(-)6764523	(-)05.93
E. Other Current Assets	0	3572580	(+)3572585	(+)100.00
Total Current Assets	786201070	635419796	(-)150781274	(-)19.17
Less: Total Current Liabilities and Provision	262327735	262075978	(-)251757	(-)00.09
Total	523873335	373343818	(-)150529517	(-)28.73
3. Outstanding Expenses (miscellany exp)	129267	14187	(-)115080	(-)89.02
TOTAL	782460680	628162336	(-)154298344	(-)19.71

Comparative Balance Sheet as on 31^st March 2009-2010

PARTICULARS	2009	2010	INC / DEC	%
SOURCES OF FUNDS:
1.SHAREHOLDERS FUND
A. Reserves and surplus	1170316598	1249344881	(+)79028283	(+)06.75
Less: I O G	1001635816	1248675113	(+)247039297	(+)24.66
Total	168680782	669768	(-)168011014	(-)99.60
2.LOANS FUNDS
A. Secured Loans	0	0	0	0
B. Unsecured Loans	459481554	0	(-)459481554	0
3.DEFERRED TAX LIABILITY	0	381952554	(+)381952554	0
Total Loans fund	459481554	381952554	(-)77529000	(-)16.87
TOTAL	628162336	382622322	(-)245540014	(-)39.08
APPLICATION OF FUNDS
1.FIXED ASSETS
A. Grass Block	684249466	697208837	(+)12959371	(+)01.89
B. Less: Depreciation	461824557	476028220	(+)14203663	(+)03.08
C. Net Block	222424909	221180617	(+)1244292	(+)00.55
D. Capital work-in-progress	32379422	32470197	(+)90775	(+)00.28
Total Fixed Assets	254804331	253650814	(-)1153517	(-)00.45
2.CURRENT ASSETS, LOANS AND ADVANCES
A. Inventories	132990382	116629901	(-)16360481	(-)12.30
B. Sundry Debtors	370407288	202028944	(-)168378344	(-)45.45
C. Cash and Bank balance	21216217	85689873	(+)64473656	(+)303.88
D. Loan and Advance	107233324	110392600	(+)3159276	(+)02.94
E. Other Current Assets	3572580	2970921	(-)601664	(-)16.84
Total Current Assets	635419796	517712239	(-)117707557	(-)18.52
Less: Total Current Liabilities and Provision	262075978	388740731	(+)126664753	(+)48.33
Total	373343818	128971508	(+)244372310	(-)65.46
3. Outstanding Expenses (miscellany exp)	14187	0	(-)14187	0
TOTAL	628162336	382622322	(-)245540014	(-)39.08

Comparative Balance Sheet as on 31^st March 2010-2011

PARTICULARS	2010	2011	INC / DEC	%
SOURCES OF FUNDS:
1.SHAREHOLDERS FUND
A. Reserves and surplus	1249344881	1542279274.35	292934393	(+)23.44
Less: I O G	1248675113	(-)1351823208.50	103148095	(+)8.26
Total	669768	190456066	189786298	0
2.LOANS FUNDS
A. Secured Loans	0	0	0	0
B. Unsecured Loans	0	0	0	0
3.DEFERRED TAX LIABILITY	381952554	36709354	(-)65243200	(-)17.00
Total Loans fund	381952554	0	0	0
TOTAL	382622322	507165420	124543098	(+)32.00
APPLICATION OF FUNDS
1.FIXED ASSETS
A. Grass Block	697208837	710845700.51	136368635	(+)19.00
B. Less: Depreciation	476028220	490606642.51	145784225	(+)30.00
C. Net Block	221180617	220239058	(-)941559	(-)00.42
D. Capital work-in-progress	32470197	39573984.34	7103787.34	(+)21.00
Total Fixed Assets	253650814	259813042.34	6162229.3	(+)2.00
2.CURRENT ASSETS, LOANS AND ADVANCES
A. Inventories	116629901	126372939.59	9743038.5	(+)08.00
B. Sundry Debtors	202028944	392839056.52	190810112.5	(+)94.00
C. Cash and Bank balance	85689873	29204812.69	(-)56485060.31	(-)65.00
D. Loan and Advance	110392600	119740222.69	6376701.6	(+)05.00
E. Other Current Assets	2970921	0	0	0
Total Current Assets	517712239	668157031.3	150444792.3	(+)29.00
Less: Total Current Liabilities and Provision	388740731	420804653.98	32063922.9	(+)08.00
Total	128971508	247352377.4	118380869.4	(+)91.00

FINDINGS:

1. During 2006 – 2007, the Reserve and Surplus maintained was very high (52.50%). Normally, it was analyzed that Reserve and Surplus maintained in the factory showed an increasing trend during the past 5 Years.

2. During the year 2007 – 2008, the government contribution was more (i.e.) 50.14% as compared to the other respective years. Finally it was found that Income of Government maintained in the concern showed an increasing trend during the past 5 Years.

3. During the Comparative Year 2006 – 2007 Loan amount availed by the concern showed the decreasing trend which was about (-46.92%). During the following years, Loan amount was not availed by the concern for its future operations.

4. During the Comparative Year 2008 – 2009, the Loan amount availed by the concern showed the decreasing trend which was about (-12.43%). During the following of proceeding Years, Loan was not obtained by the concern for its future operations.

5. During the Comparative Year 2010 – 2011, the deferred Tax Liability to be paid by the concern showed an decreasing trend which was about (-17%). During the preceding years, the company had no Taxable amount to pay for its further proceedings.

6. During the year 2008 – 2009, it was too low which was about (-00.09%) as compared to the following years. Normally, the Current Liability and Provision had fluctuations over a period of past 5 Years.

7. During the period 2006 – 2007, the stock position maintained by the concern was very low which was about (-13.67%). Gradually, stock position maintained in the concern showed an increasing trend during the past 5 Years.

8. During the year 2010 – 2011, the sum amount received on Credit by the concern was very high (94%) as compared to the preceding years. Normally, it showed a decreasing trend during the past preceding years.

9. During the year 2009 – 2010, the cash balance maintained by the concern was very high (i.e., 303.88%). During the year 2007 – 2008, the Cash & Bank balance maintained was too low (i.e., 10.59%) as compared to the respective 5 Years. As Majority it showed an increasing trend during the past 5 Years.

10. During the year 2006 – 2007, the Loans & Advances received by the concern was high (i.e., 31.64%) as compared to the following Years. During the year 2008 – 2009, the Advances received by the company were too low (i.e., 05.93%). As Majority the Loans and Advances received during the past 5 Years showed an increasing trend.

11. During the year 2006 – 2007, the other Current Assets maintained in the TANCEM Limited., was High (i.e., 23.97%) as compared to other respective years. During the year 2009 – 2010, the other Current Assets maintained was very Low (i.e., 16.84%).

12. During the year 2010 – 2011, the Fixed Assets maintained by the concern was very High (i.e., 19%) as compared to the preceding years. During the year 2006 – 2007, it was very Low (i.e., -1.55%) as compared to other respective years. Normally, Fixed Assets showed an increasing trend over the past 5 Years.

13. During the year 2010 – 2011, Depreciation was charged high which was about (30%) as compared to other years. During the year 2006 – 2007, the depreciation, it was Low (00.99%) as compared to other year. Normally, depreciation was charged & it showed an increasing trend over the past 5 Years.

14. During the 2007 – 2008, the Capital amount Invested was very High (i.e., 30.59%) to carry out its operations as compared to the other respective years. During the year 2008 – 2009, the Capital amount Invested was (09.82%) which was very low as compared to other years. As majority it showed an increasing trend during the past 5 Years.

15. The Net Assets maintained by the concern during the past five years was very Low (i.e., -00.56% to 05.69%). Gradually it showed a decreasing trend over the past 5 Years.

16. During the period 2006 – 2007, the Outstanding Expenses incurred by the company was very Low (-61.50%) as compared to other respective years. Gradually, it showed a decreasing trend over the period of 5 Years.

SUGGESTIONS:

Ø TANCEM is a strong competitor in manufacturing and supplying a wide range of cement products. The corporate image of TANCEM is to be maintained ever to sustain in this competitive arena. To become world class Energy Company, utmost care is taken to produce quality products in order to capture in the competitive market.

Ø The company has to adopt advanced technology in order to increase more production.

Ø Maintenance of Fixed Assets is necessary to avoid abnormal wear and tear.

Ø To widen its market, more Services are required. The company has to extend its services not only to the confirmed area. But also to the areas which are out of reach by the TANCEM Limited., to increase its sales potential.

Ø Consumer is the king of the market. So, in order to with stand in the market, Consumers are to be satisfied proper care is to be taken to satisfy the needs of the consumers.

Ø The company should declare more Dividends to the Share Holders in order to increase market value of Shares of TANCEM in the security market to maintain its Goodwill.

Ø Different varieties of Brands should be introduced according to the need of the customers, So as to earn more profit in future

CONCLUSION:

TANCEM Limited plays a predominant role in production of Cement in Ariyalur District. It caters the needs of the public as well as private sector with the quality products and its excellent services according to the preference of the customers. The Researcher has found that the comparative study of Balance Sheet made during the past five years was found satisfactory. Utmost care is taken to increase the Fixed Assets of the company, in turn to decrease the Liability of the concern. The stock position maintained in the company was very Good. It leads to increase the production over the years and it leads to increases more profits in future.

REFERENCES:

1. T. S. Reddy, Y. Hari Prasad Reddy “Management Accounting” Chennai, Maragham Publication, Third Edition (2007).

2. R. S. N. Pillai and Bagavathi “Management Accounting” S. Chand Company Limited. Publication, New Delhi, 3^rd Edition (2006).

3. I. M. Pandey “Financial Management” New Delhi, Vikas Publications, Ninth Edition (2007).

4. C. R. Kothari, “Research Methodology Methods and Techniques” Wishwa Prakasham, New Delhi (2002).

5. Jelsy Joseph Kuppapally “Accounting for Managers” Prentice Hall of India Private Limited, New Delhi, (2008).

Received on 10.02.2014 Modified on 12.03.2014

Accepted on 21.04.2014 © A&V Publication all right reserved

Asian J. Management 5(3): July-September, 2014 page 286-292