2 6 114 872 PDF
2 6 114 872 PDF
2 6 114 872 PDF
Abstract
Cement is an essential component required for the development of the infrastructure and various housing programmes which are
necessary for the socio-economic growth and development of the country. The Indian cement industry is the second largest
producer of cement in the world but ahead of the united statesand Japan. For over 3 decades, JK cement’s business priorities have
been closely aligned with national aspirations and objectives. During this period India’s economic growth and Govt. reforms have
lifted millions of people from poverty and ignorance by giving them an opportunity to live life with dignity. JK cement long term
vision is also the same and it has succeeded in achieving its objectives.
History – The story of JK Lakshmi Cement Limited began in the year-1982 from. The place- a remote area in the zero industry
district of Sirohi in Rajasthan. And as it has completed more than 29 years of its glorious existence, the company is renowned for
its strength, quality and performance. One of the established names in the cement industry, JK Lakshmi Cement Ltdhas state-of-
the-art plant at Jaykaypuram, dist. Sirohi, Rajasthan. With the capacity expansion and further commissioning of split location
grinding units at Motibhoyan, Kalol (Gujarat) & Bajitpur, Jhajjar (Haryana) the combined capacity of the Company today stands at
5.30 Mn. MT per annum. With the use of the latest technology from M/s Blue Circle Industries and modern equipments from M/s
Fuller International of USA, the Company is going from strength to strength. It is also the first cement producer of Northern India
to be awarded an ISO 9002 certificate and be accredited by NABL (Department of Science &Technology, Government of India)
for its Lab Quality Management systems. Keeping in touch with the global construction trends & changing needs of customers, the
company has introduced state-of-the-art Ready Mix Concrete (RMC ) with the brand name” JK Lakshmi Power Mix”. C urrently,
the company has 10 fully operational plants in Western & Northern regions of the country and is further expanding in this area.
‘JK Lakshmiplast’ the first premium branded Plaster of Paris (POP) in Northern India is another value added product launched by
the C ompany for discerning customers.
214
International Journal of Advanced Educational Research
Liquidity Ratios:” Liquidity” refers to the ability of the firm to current resources.
meet its current liabilities. The liquidity ratios therefore are 1) Current Ratio :- This ratio explain the relationship
also called Short term solvency ratios.these ratios are used to between current assets and current liabilities of a
assess the short term financial position of the concern.They business. The formula for calculating the ratio is Current
indicate the firm’s ability to met its current obligations out of Assets /Current Liabilities.
215
International Journal of Advanced Educational Research
2) Quick Ratio: - Quick ratio indicates whether the firm is in 4) Long Term Debt-Equity Ratio --Long-term debt-to equity
a position to pay its current liabilities within a month or ratio indicates to investors and the rest of the world the
immediately. The quick ratio is calculated by dividing liquid funding strategies a company uses to outperform the
assets by current liabilities. competition and lure customers away from rivals. In essence,
this metric 4) LONG TERM DEBT-EQUITY RATIO –
Quick Ratio =Liquid Assets/Current Liabilities. provides insight into the firm's mix of equity and debt, and
how this combination affects corporate productivity. Long-
‘Liquid Assets’ means those assets which will yield cash very term debt-to-equity ratio equals total long-term debts divided
shortly.An ideal Quick Ratio is said to be 1:1.If it is more it is by total equity.
considered to be better. The idea is that for every rupee of
current liabilities,there should be atleast one rupee of Liquid Long Term Debt-Equity Ratio= Long term Debt /Total
assets. Stock is not included in liquid assets as it may take a Equity.- A low debt-to-equity figure tells corporate financiers
lot of time before it is converted into cash.Quick ratio is thus that senior leadership is too timid in risk taking and may be
more rigorous test of liquidity then the current ratio.But when missing opportunities in the Market place. Conversely, a high
used with current ratio, it gives a better picture of the short – ratio could mean the firm is taking on too much debt relative
term financial position of the firm. Quick ratio of JK Cement to its equity capital.
Company in 2009 is 1.64 which is more than the ideal ratio i.e
1:1.In the next year in 2010 it declines to 0.72 but it improves Significance
to 0.88 in the year 2011 followed by a slight decline to 0.81 in Long-term debt-to-equity ratio is an important indicator that
the year 2012 and further declines to 0.75 in the year financial-market players rely on to gauge corporate solvency.
2013.Soin comparison of all the years from 2009 to 2013, the Reviewing this performance indicator satisfies department
company is in a better position to pay its current liabilities heads' desire to learn about trends on financial markets, with
immediately in the year 2009. an emphasis on whether the company can borrow money at
affordable rates. Long term Debt-equity ratio of JK Cement
3) DEBT – EQUITY TATIO =This ratio expresses the company is 0.54 in 2009, 0.88 in 2010, 1.10 in 2011 this
relationship between long term debts and shareholder’s fund. worsens the situation then it improves a little when in 2012 it
It indicates the proportion of funds which are acquired by long is 0.77 and in 2013 it is 0.56. This ratio analysis shows that
term borrowings in comparison to shareholders funds. the company is quite strong financially in the year 2009.
Debt-Equity Ratio=Debt/equity or Long term
loans/shareholders Funds or Net worth. Conclusion
Considering the growing demand for cement in india and
Long term Loans:- These refers to long term liabilities which higher capacity utilization over the years. Key Indian players
matures after one year. These includes debentures, mortgage have already begun to revisit their business strategies. Further,
loans, bank loans, loans from financial institutions and public as cement is a commodity and the process is well known,there
216
International Journal of Advanced Educational Research
References
1. International conference on economics, Business and
management.
2. Shubhav Gupta. Corporate strategy; Indian cement
Industry April 2010(online).
Available:http://www.scribd.com/doc/32159493/overvie
w of-Indian Cement Industry-2010.
3. Cement. July 2010 (on line).
Available:http://www.ibef.org/ industry/ cement.aspx.
4. BMR Advisors. Global Cement Industry, 2008.
Available: http://www.bmradvisors.com/budget
5. 2010/Infrastructure- real estate: hmtl.
6. Cement Industry in India “Oct 2009 (on line).
Available: http://business maps of India.
com/Cement/.(Accessed Aug 3,2010)
7. Aizawa T, Kawano T. Optimization system in production
and distribution of the cement industry. Industry
Application, 2002.
8. JK Cement Company”s web site.
217