this project is based on the Annual report of the Ambuja Cement. This project for Account Ratio.

1. A Project Report on Ambuja Cements Limited Page 1
COMPANYPROFILE
Name of the Company: Ambuja cements Limited
Type Of Business: Exploration Development & Production of Cement
RegisterOffice: P.O. Ambujanagar, Tal. Kodinar Dist. Gir Somnath,
Gujarat 362 715
Corporate Office: Elegant Business Park MIDC Cross Road ‘B’
Off Andheri-Kurla Road Andheri (E),
Mumbai 400 059
MissionStatement: Giant Compressive Strength
Company Vision: TO BE THE MOST SUSTAINABLE AND COMPETITIVE
COMPANY IN OUR INDUSTRY
Company Mission: CREATE VALUE FOR ALL
Delighted Customers | Inspired Employees |
Enlightened Partners Energised Society |
Loyal Shareholders | Healthy Environment

2. A Project Report on Ambuja Cements Limited Page 2
CORPORATEINFORMATION
Chairman Emeritus: Mr. Suresh Neotia
Board Of Directores: Mr. N. S. Sekhsaria - Chairman
Mr. Paul Hugentobler - Vice Chairman (up to 6th February, 2014)
Mr. Bernard Fontana
Mr. Bernard Terver (w.e.f. 4th December, 2013)
Mr. Nasser Munjee
Mr. Rajendra P. Chitale
Mr. Shailesh Haribhakti
Dr. Omkar Goswami
Mr. Haigreve Khaitan
Mr. B. L. Taparia
Mr. Onne van der Weijde - Managing Director
DY. Managing Director &
Chief Executive Officer: Mr. Ajay Kapur (w.e.f. 1st August, 2013)
Chief Financial Officer: Mr. Sanjeev Churiwala
Company Secretary: Mr. Rajiv Gandhi
Business Heads: Mr. J. C. Toshniwal (North)
Mr. Vilas Deshmukh (West & South)
Mr. Vivek Agnihotri (East)
Auditors: M/s. S. R. Batliboi & Co. LLP (Statutory Auditors)
P. M. Nanabhoy & Co. (Cost Auditors)

3. A Project Report on Ambuja Cements Limited Page 3
HISTORY OF COMPANY
YEAR DETAILS
1986 Establishing of company as name of “Gujarat Ambuja Cement Ltd”
The Company has 5 integrated cement manufacturing plants and 8 cement grinding units
across the country. ACL is the first Indian cement manufacturer to build a captive port with
three terminals along the country's western coastline to facilitate timely, cost effective and
environmentally cleaner shipments of bulk cement to its customers.
1981 The Company was converted into a public limited company on 19th March, 1983 and its
name was changed to Gujarat Ambuja Cements, Ltd., on 19th May, 1983.
1983 All shares subscribed for by signatories to the Memorandum of Association, promoters, etc.
1985 - 146,44,500 No. of equity shares issued at par out of which the following shares were
reserved for firm allotment: 38,24,448 shares to GIIC; 21,20,000 shares to overseas
companies of non-resident Indian promoters on repatriation basis and 15,50,052 shares to
N.S.Sekhsaria, Vinod K.Neotia and their associates.
- Out of the balance 71,50,000 shares, 28,60,000 shares to non-resident Indians with
repatriation rights and 8,75,500 shares to employees (including Indian working
directors)/workers and business associates of the Company were reserved for preferential
allotment. The remaining 34,14,500 shares were offered for public subscription during
November. Out of the over subscription, 33,50,000 shares were to retained and allotted the
public.
1986 20,00,000 No. of equity shares issued at par of which 2,00,000 shares allotted to private
promoters and their associates and the balance of 18,00,000 shares offered and allotted to the
equity shareholders as rights in prop. 1:1.
1990 Necessary approvals were received for setting up another cement plant with 1 million tone
capacity per annum at village Suli, Tehsil Arki, District Solan of Himachal Pradesh.
1991 - In order to meet long-term working capital requirements, the Company issued 10,00,000 -
17.5% secured redeemable non-convertible debentures on private placement basis. These
debentures would be redeemed in three equal annual installments commencing at the end of
the 6th year from the date of issue of the debentures, at a prem. of 5% of the face value of the
debentures.

4. A Project Report on Ambuja Cements Limited Page 4
- In order to part finance its expansion projects, the Company proposed to issue 52,62,500
No. of equity shares of Rs.10 each at a prem. of Rs.190 per share. Out of the total issue,
50,00,000 shares were to be offered to the existing equity shareholders of the Company as
rights in the prop. of 1:4 and the balance of 2,62,500 shares were to be offered to the
employees, directors and the business associates of the company.
-In order to part finance its expansion projects, the Company also proposed to issue
52,62,500 - 17.5% secured redeemable non-convertible debentures aggregating to Rs.210.50
cores. Out of the total issue, 50,00,000 debentures were to be offered to the equity
shareholders of the Company on rights basis in the prop. of 1 debenture for every 4 equity
shares held and the balance of 2,62,500 debentures were to be offered to the employees,
directors and business associates of the Company.
- Each non-convertible debenture would be attached with a detachable warrant and the holder
of one such warrant would be entitled to apply for and be allotted one equity share of the
Company at a price of Rs.300 per equity share (Rs.10 towards face value and Rs.290 as
prem.).
- The warrant holders at the time of exercising their right/option to subscribe for their equity
shares entitlement would have further option either to pay a price of Rs.300 per share of the
Company or to surrender the equivalent number of debentures as subscription for allotment
of equity shares.
- GACL Finance Ltd., Concrete Investments, Ltd., and Indo Nippon Special Cements, Ltd.
are the subsidiaries of the company.
1992 The Company undertook bulk cement transportation, by sea, to the major markets of
Mumbai, Surat and other deficit zones on the West Coast. Transportation was to be carried
out by three specially designed ships. The unit’s bulk terminal at Kodinar and one at New
Mumbai was completed and work on the third terminal near Surat began.
1996 - Two more ships `Ambuja Keerti ' and `Ambuja Shakti ' were added to the Fleet. The
Company has submitted a proposal to revive Modi Cements Ltd. to IDBI during the year.
- Another 19724 No. of equity shares allotted on conversion of warrants.
1998 Gujarat Ambuja Cements to set up a $20 million clinker Grinding unit in Sri Lanka.
1999 - Gujarat Ambuja is proposing to set up a greenfield cement plant with a six million tonne
capacity in phases in Andhra Pradesh.

5. A Project Report on Ambuja Cements Limited Page 5
- The company has proposed a bonus shares in the ratio of 1:1.
2000 - Cement giants Larsen & Tubro (L&T) and Gujarat Ambuja Cements have entered a unique
agreement to reduce transportation costs in dispatching bulk cement in Gujarat.
- The Company has entered the fray for setting up a slag cement unit near the integrated steel
complex of Jindal Vijayanagar Steel Ltd. in Karnataka.
- The Company has entered into a contract with a Soinhalese firm, Mahaveli Marine Cement,
to supply around 2.5 lake tonnes of cement annually.
- Eastern Ambuja Cement, a 92-per cent subsidiary of Gujarat Ambuja Cement, is in talks
with Orissa-based Shiva Cement for a possible joint venture.
- The Company has kick started its operations in Sri Lanka with the setting up of a cement
terminal in the port of Galle, in the south of the island country.
- Ambuja Cement Eastern, a subsidiary of Gujarat Ambuja Cements is making a preferential
allotment of equity to its promoters to mop up Rs 30 core to part-finance its Rs 130-core
expansion project.
- ICRA has downgraded the non-convertible debenture (NCD) programmes of the company.
- Fitch India has assigned a rating of Ind AAA to the Rs 50 crore NCD programmes of the
company.
2001 - The Company has completed the issue of FCCBs of about $100 million issued in the
international markets.
- Gujarat Ambuja Cements Ltd., the fourth largest cement maker in the country, has closed
its issue of secured non-convertible debentures after raising the targeted Rs 200 crore.
- Gujarat Ambuja Cements Ltd is planning to issue fresh equity shares on a preferential basis
to non-promoter groups.

6. A Project Report on Ambuja Cements Limited Page 6
- Gujarat Ambuja Cements Ltd (GACL) has received Rs 200 crore from foreign equity
investor, Warburg Pincus, as part of its proposed Rs 360-crore investment in the form of
equity shares and convertible ants.
- The company will buyback shares worth Rs 50 crore at a maximum share price of Rs 170
per share through the open market route, it said. Gujarat Ambuja Cements has clocked a 112
per cent rise in net profit at Rs 53.23 crore during the first quarter of the financial year 2001-
02.
2002 -Commercial production commences at Gujarat Ambuja Cements Maratha Cement Works
plant
-Board approves merger of Ambuja Cement Rajasthan with the company
-Mops up Rs 50 crore by issuing non Convertible Debentures (NCD)
-Allots 80 lacs warrants to Affinity Investments, an Affiliate of Warburg Pincus Equity
Partners L.P
-Securities Appellate Tribunal (SAT) directs SEBI to examine Gujarat Ambuja deal for ACC
stake
2003 -SEBI finds no violation of Regulation 12 of the SEBI (Substantial Acquisition of Shares and
Takeovers) Regulation, 1997 by Gujarat Ambuja Cements Ltd. with regard to the ACC deal
-Raises $80 million through External Commercial Borrowings (ECB)
2004 -BIFR sanctions the rehabilitation scheme for merger of Ambuja Cement Rajasthan with
Gujarat Ambuja Cements Ltd.
-Gujarat Ambuja Cements Ltd has informed that Shri NP Ghuwalewala has been appointed
as the Whole time Director of the Company at the Board meeting held today on June 28,
2004
2005 -Gujarat Ambuja gives Rs 25 lakh aid for quake victims
- Company has splits its Face value of Shares from Rs 10 to Rs 2
- Ambuja Cements has given the Bonus in the Ratio of 1:2

7. A Project Report on Ambuja Cements Limited Page 7
2006 - Holcim raises stake in Gujarat Ambuja Cements
- Gujarat Ambuja - Change in Accounting Year
2007 - Name has been changed from Gujarat Ambuja Cements Ltd to Ambuja Cements Ltd.
2008 - Ambuja Cements Ltd has appointed Mr. Naresh Chandra as an additional director.
2009 - The Company launched its knowledge initiative i.e. Ambuja Knowledge Center to enable
industry professionals get a first-hand feel of the world of cement and concrete. During the
year, three centers became operational in the cities of Jaipur, Ahmedabad and Kolkata.
- Ambuja Cements - Grant of Stock Option under ESOS
2010 -On 24th February 2010, Ambuja Cements Ltd (ACL) inaugurated its cement plant (grinding
unit) at Dadri, Uttar Pradesh. Capacity: 1.5 million tonnes.
-On 27 March, 2010, Ambuja Cements Ltd (ACL) inaugurated its cement plant (grinding
unit) at Nalagarh, Himachal Pradesh. Capacity: 1.5 million tonnes.
-In December 2010, the Dadri Grinding Unit in its very first year of operation received the
Integrated Management System (IMS) Certification, including ISO 9001:2008, ISO
14001:2004, and OHSAS 18001:2007 by BSI (U.K.).
2011 -Completes 25 years of operation. Celebrates silver jubilee at all integrated plants.
-Achieves water-positive status, as certified by an independent foundation, Det Norske
Veritas. Ambuja Cements gives back to the community double the amount of water the
Company consumes at its facilities.
- Ambuja Cements Ltd has acquired 85% equity shares of Dang Cement Industries Pvt. Ltd.,
Nepal
- Ambuja Cements Ltd has acquired 60% equity shares from the existing promoters of Dirk
India Pvt. Ltd.

8. A Project Report on Ambuja Cements Limited Page 8
2012 -Ambuja Cements announces Allotment of Shares under ESOS category.
- Ambuja presented 2 awards at the CII Sustainability Awards 2012 by Honorable President
of India.
-Ambuja Cements Limited’s (ACL) integrated plant unit at Chandrapur, (Maharashtra), the
Maratha Cement Works (MCW) bagged the gold award for the best safety systems under the
Large size category of the FICCI Safety Excellence System Awards 2012
2013 -Cement production decreased by 3% to reach 20.96 million tonnes, from 21.62 million
tonnes while clinker production decreased to 14.27 million tonnes, 10% down from 15.81
million tonnes in year 2012.
- Total (operating) expenses for the year 2013 increased by 2% over that of year 2012.
- The Company achieved an absolute EBITDA of `1651 crores in year 2013. This is lower by
33% over the corresponding `2473 crores of the year 2012.
- Cement exports in 2013 reduced further to 0.10 million tonnes as compared to 0.12 million
tonnes in 2012.
- The year 2014 will see capital expenditure worth `802 crores, over and above the `725
crores investment made in 2013. The entire proposed expenditure would be financed by
internal accruals.

9. A Project Report on Ambuja Cements Limited Page 9
Achievements:
 Environment protection measure that conform to the world best.
 Benchmarking quality standards for the industry.
 Reinventing cement transportation.
 Ambujanagar has won 'Best Environmental Excellence in Plant Operation' – National award by
NCBM 2009
 'Certificate of Appreciation' for Accident Free million man hour our worked – Gujarat Safety
Council – Baroda 2009
Recognition:
 National Award for commitment to quality by the Prime Minister of India.
 National Award for outstanding pollution control by the Prime Minister of India.
 ISO 9002 Quality Certification.
 ISO 14000 Certification for environmental systems.
 Best Award for highest exports by CAPEXIL.
Economic Times – Harvard Business School Association Award for corporate excellence.

10. A Project Report on Ambuja Cements Limited Page 10
Ratio Analysis
Proprietors Ratio:
(Rs in Crores)
Year Share Holder’s Equity Total Assets Ratio (Percentage)
2011 306.88 574.65 53.40 %
2012 308.44 801.36 38.48 %
2013 309.17 968.83 31.91 %
INTERPRETATION:
 Proprietary ratio establishes a relationship between shareholders funds to total
assets. It measures the proportion of assets financed by equity.
 A higher proprietary ratio indicated a larger safety margin for creditors. It tests the
ability of the shareholders’ funds to meet the outside liabilities. A low Proprietary Ratio, on
the other hand, indicated a greater risk to the creditors. To judge whether a ratio is
satisfactory or not, the firm should compare it with its own past ratios or with the ratio of
similar enterprises or with the industry average.
 In This Company we compare with past data and found that it’s reduces. In 2011,
company having 53.40 % that time its risk is lowers as compare with current year like 2012
and 2013; it’s 38.48 % and 31.91 % respectively.
 This ratio shows that company take risk and involves investment increasing into
business activities.

11. A Project Report on Ambuja Cements Limited Page 11
Debt Equity Ratio:
(Rs in Crores)
Year Total Liabilities Share Holder’s Equity Ratio
2011 8,112.24 306.88 26.43
2012 8,839.69 308.44 28.66
2013 9,514.69 309.17 30.77
INTERPRETATION:
 Debt Equity Ratio measures the relationship between long-term debt and
shareholders’ funds. It measures the relative proportion of debt and equality in financing the assets of
a firm.
 A low debt equity ratio reflects more security to long term creditors. From security
point of view, capital structure with less debt and more equity is considered favorable as it reduces
the chances of bankruptcy.
 A high ratio, on the other hand, is considered risky as it may put the firm into
difficulty in meeting its obligations to outsiders. However, from the perspective of the owners,
greater use of debt, firm can enjoy the benefits of trading on equity which help in ensuring higher
returns for them if the rate of earning on capital employed is higher than the rate of interest payable.
 In this company take higher risk and also get benefits of higher rate of interest
payable. We can see that in 2011 its 26.43, 2012 its 28.66 and 30.77. The company into a cement
manufacturing and selling that’s why this ratio is high because they invested into operating activity
as well as into long term credit sale activity.

12. A Project Report on Ambuja Cements Limited Page 12
Return on Capital Employed Ratio:
Earning Before Interest and Tax × 100
Total Assets – Current Liabilities
(Rs in Crores)
Year Earnings Before
Interest and Tax
Total Assets Current Liabilities Ratio
(Percentage)
2011 1,727.12 12,424.68 3010.94 18.35 %
2012 2,180.96 12,313.08 2,899.94 23.17 %
2013 1,489.30 12,964.59 2,843.20 14.71 %
INTERPRETATION:
 This ratio establishes the relationship between net profit before Interest and Tax and
capital employees. It measures how efficiently the long-term funds supplied by the long-term
creditors and shareholders are being used. It is expressed as a percentage.
 In 2013 company ratio is 14.71 % that’s bad compare to last two year likes 2012 &
2011 it’s 23.17 % and 18.35 % respectively.
 Sometimes this type of company give their products on credit on long period that’s
why their money block and not get return as per expectation. In this company we see that their
earnings before interest and tax is reducing and their total assets increasing every year that’s why
their ration is reducing.