Industy-Profile :

India is the 2nd largest cement producer in world after china .Right from
laying concrete bricks of economy to waving fly over’s cement industry has
shown and shows a great future. The overall outlook for the industry shows
significant growth on the back of robust demand from housing construction,
Phase-II of NHDP (National Highway Development Project) and other
infrastructure development projects. Domestic demand for cement has been
increasing at a fast pace in India. Cement consumption in India is forecasted
to grow by over 22% by 2009-10 from 2007-08.Among the states,
Maharashtra has the highest share in consumption at 12.18%,followed by
Uttar Pradesh, In production terms, Andhra Pradesh is leading with 14.72% of
total production followed by Rajasthan. Cement production grew at the rate of
9.1 per cent during 2006-07 over the previous fiscal's total production of 147.8
mt(million tons). Due to rising demand of cement the sales volume of cement
companies are also increasing & companies reporting higher production,
higher sales and higher profits. The net profit growth rate of cement firms was
85%.Cement industry has contributed around 8% to the economic
development of India. Outsiders (foreign players) eyeing India as a major
market to invest in the form of either merger or FDI (Foreign Direct
Investment). Cement industry has a long way to go as Indian economy is
poised to grow because of being on verge of development.

Despite the growth of Indian cement industry India lags behind the per
capita production. Supply for cement is expected to remain tight which, in turn,
will push up prices of cement by more than 50%. The most important factor for
better prices is consolidation of the industry. It has just begun and we will see
more consolidation in the coming years. Other budget measures such as cut
in import duty from 12.5 per cent to nil etc. are all intended to cut costs and
boost availability of cement.

1
One of the strategy is to decrease dependence on road & opt for sea
logistics as that can cut transportation cost by 30- 50 %. Some plants are
adopting futuristic plan such as setting up captive power plant, moving closer
to the customers by creating clicker, crushing, and capacity in key markets, to
be more customer centric to generate better revenue. India should push for
stricter regulations of market place as to control the prices of big companies
and prevent them from forming cartels and exchanging information. To fight
with the high inflation, government wants to import more cement from
Pakistan .However cement prizes are not very much high as other items but
still they are increasing. And the reason of high prize is surging cost of raw
material and transportation cost. Apart from this government also discussed
with cement industry not to have increase in prizes and keep consumer
interest in mind.

Now the question arise in front of the government is whether the demand
by the government is possible to increase through expenditure on
infrastructure or not according to the current state of economy when so many
crises are going on or how the government allocation of US$ 3.23 billion for
the National Highway Development, Project will keep the demand for cement
alive?

2
 Profiles of selected companies :

1. ACC cement : ACC (ACC Limited) is India's foremost manufacturer of

cement and concrete. ACC's operations are spread throughout the country
with 14 modern cement factories, more than 30 Ready mix concrete plants, 20
sales offices, and several zonal offices. It has a workforce of about 9,000
persons and a countrywide distribution network of over 9,000 dealers.

Since inception in 1936, the company has been a trendsetter and important
benchmark for the cement industry in many areas of cement and concrete
technology. ACC has a unique track record of innovative research, product
development and specialized consultancy services. The company's various
manufacturing units are backed by a central technology support services
centre - the only one of its kind in the Indian cement industry.

ACC has rich experience in mining, being the largest user of limestone. As the
largest cement producer in India, it is one of the biggest customers of the
domestic coal industry, of Indian Railways, and a considerable user of the
country’s road transport network services for inward and outward movement
of materials and products.

Among the first companies in India to include commitment to environmental

protection as one of its corporate objectives, the company installed
sophisticated pollution control equipment as far back as 1966, long before
pollution control laws came into existence. Today each of its cement plants
has state-of-the art pollution control equipment and devices.

ACC plants, mines and townships visibly demonstrate successful endeavours

in quarry rehabilitation, water management techniques and ‘greening’
activities. The company actively promotes the use of alternative fuels and raw
materials and offers total solutions for waste management including testing,
suggestions for reuse, recycling and co-processing.

3
ACC has taken purposeful steps in knowledge building. We run two institutes
that offer professional technical courses for engineering graduates and
diploma holders which are relevant to manufacturing sectors such as cement.
The main beneficiaries are youth from remote and backward areas of the
country.

ACC has made significant contributions to the nation building process by way
of quality products, services and sharing expertise. Its commitment to
sustainable development, its high ethical standards in business dealings and
its on-going efforts in community welfare programmes have won it acclaim as
a responsible corporate citizen. ACC’s brand name is synonymous with
cement and enjoys a high level of equity in the Indian market. It is the only
cement company that figures in the list of Consumer SuperBrands of India

2. KCP Cement :

The KCP Group of Companies had its beginning in the year 1941. It started
with a single co-operative sugar factory in the state of Andhra Pradesh in
South India with a simple philosophy... ´ Modernise.. Indigenous ..Never
compromise on Technology ´ . These were the words of our founder Shri V.
Ramakrishna who had stepped down at the age of 51 in those pre-
independence turbulent days (before 1947) to take up this challenge.

Since then The KCP Group has diversified into Cement and Heavy
Engineering. The KCP Cement Division went operational in 1958 and was
India's first dry process kiln.

4
The KCP Heavy Engineering Division was established in 1955 as a sprawling
High Technology Complex in the suburb of Chennai. This complex is one of
the largest and highly integrated centers with Casting, Fabrication and
Machining facilities required in the manufacture of large infrastructure
machinery for core Industries like Sugar, Cement, Steel and Power.

Our Chairman & Managing Director Dr. V.L Dutt and Joint Managing Director
Mrs. V.L. Indira Dutt have been the guiding architects for the group´s
continued progress. Under their leadership we have grown from strength to
strength into a Rs. 500 Crore ($ 100 million) company. An important highlight
in the financial performance is its 68 year uninterrupted dividend record and its
bonus capitalization of shareholder wealth (98% of share capital).

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 2007 KCP Biotech Limited got merged with the KCP Limited.
2006 Wind Power generating Unit setup at Uthumalai village in Tirunelveli Dt of Tamil
Nadu.
2002 KCP Biotech Limited setup at Biotech Park, Shameerpet, Hyderabad to manufacture
biotech related products.
2001 KCP Heavy Engineering Plant II setup at Arakonam near Chennai, to execute
medium to large sized fabrication projects.
1999 KCP Hydel Power Division setup at Nekkarikallu, Andhra Pradesh on the Guntur
Canal of Krishna river to generate 8 MW of power.
1999 KCP Vietnam Industries Limited, a fully owned subsidiary of the KCP Limited
setup to manufacture sugar at Thua Thien Hue Province at Central Vietnam. This
2500 TCD plant was shifted to Son Hoa District, Phuyen Province in 2001.
1999 KCP Technologies Limited setup to provide high quality IT Solutions &
Engineering Technical Services.
1995 FCB-KCP Limited, (now Fives Cail-KCP) setup as a joint venture with Fives Cail
Group of France for the design and manufacture of Sugar Plants.
1995 KCP Sugar Manufacturing Division demerger into a separate company, KCP Sugar &
Industries Limited.
1984 Arakonam Castings & Forgings Limited, started as a joint venture between The
KCP Limited and the Tamilnadu Industrial Development Corporation (TIDCO).
1984 Fuller KCP Limited, a joint venture with Fuller International Inc, USA was
launched, for the design and manufacture of large-sized cement plants and other
mineral processing equipment. KCP divested its stake to FL Smidth, Denmark in
1996.
1967 EIMCO-KCP Limited, started as a joint venture between The KCP Limited and
EIMCO Corporatation, USA. Currently a 100% subsidiary of KCP Sugar & Industries
Limited.
1958 KCP Cement Division, setup at Macherla, Andhra Pradesh with a state-of-the-art
cement manufacturing plant. India's first dry process kiln was installed at Macherla by
HUMBOLDT AG, Germany in 1958 (while still a prototype in Europe).
1955 KCP Heavy Engineering Division Plant I, setup at Tiruvottiyur, Chennai consisting
of an integrated manufacturing facility, which caters to a wide range of heavy
mechanical equipment and sub-systems for core sector industries.
1941 An 800 TCD Sugar Plant was setup at Vuyyuru, Andhra Pradesh, India by Sri. V.
Ramakrishna, Founder Chairman of KCP.

3. JK Cement :

The Company is promoted by Dr. Gaur Hari Singhania, Mr. Yadupati

Singhania, Yadu International Limited and Juggilal Kamlapat Holding
Limited. The Company was incorporated under the Companies Act as
J.K. Cement Limited on November 24, 1994 and obtained its certificate

6
of commencement of business on the same date. One of the main
objects of the Company, as contained in our Memorandum of
Association, is the acquisition of the whole or substantially the whole of the
undertakings and properties comprising the JKSL Cement Division.

Due to continuous losses, the net worth of JKSL became negative and
consequently, JKSL applied to the BIFR which registered JKSL as a
sick company on April 2, 1998. Subsequently, the matter was referred
to the AAIFR, which formulated a Scheme of Rehabilitation for JKSL.
Pursuant to the Scheme of Rehabilitation, the JKSL Cement Division
was acquired by the Company as a ‘going concern’ on ‘as-is-where-is’
basis through a slump sale, with effect from November 4, 2004. Prior to the
acquisition, the Company did not have any substantial business
activity.

Key Events :
The key events in respect of the JKSL Cement Division and the Company
are set forth below:
Year
1975
The grey cement plant at Nimbahera, with an initial capacity of 0.3
MnTPA, commenced commercial production
1979
A second production line was added at Nimbahera, increasing the
capacity from 0.3 MnTPA to 0.72 MnTPA
1982
A third production line was added at Nimbahera, increasing the
capacity from 0.72 MnTPA to 1.14 MnTPA

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1984
Lime-based white cement plant was established at Gotan, with an
initial capacity of 0.05 MnTPA
1987
A captive thermal power plant was installed at Bamania
1988
A pre-calciner was installed at Nimbahera, increasing the total
capacity to
1.54 MnTPA
1990
The JKSL Cement Division instituted Architect of the Year award
1994
(i) The Company was incorporated
(ii) The Regional Training Centre for Northern India, which was
established at the Nimbahera plant of the JKSL Cement Division with
aid from the World Bank and the Danish International Development
Agency, commenced service

2000
The total capacity of the white cement plant at Gotan was increased
to 0.3 MnTPA as a result of continuous modernization and upgradation
2001
A new grey cement plant with a capacity of 0.75 MnTPA was installed
at Mangrol
2004
(i) The Company acquired the JKSL Cement Division
(ii) The total capacity of the grey cement plant at Nimbahera was
increased to 2.8 MnTPA as a result of continuous modernization and
upgradation
2005

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(i) The Company allotted 7,426,950 Equity Shares to the shareholders JKSL
pursuant to the AAIFR order dated January 23, 2003
(ii) The Company was listed on the BSE
2006
-JK Cement has finalised the issue price of its recently concluded
initial public offering (IPO) at Rs 148 per share.
-Jk Cement Limited has informed that w.e.f. 16.12.2006 Mr. Manish
Bajpai Company Secretary and Compliance Officer of the company has
resigned and in his place Mr. Ashish Sabharwal has been appointed as
Company Secretary.
2007
-Jk Cement Limited has appointed Dr. K.B. Agarwal as Additional
Director of the Company to hold office until the conclusion of next
Annual General Meeting.

METHODOLOGY : (Source of funds) :

Capital-structure :

In finance, capital structure refers to the way a corporation finances its

assets through some combination of equity, debt, or hybrid securities. A firm's
capital structure is then the composition or 'structure' of its liabilities. For
example, a firm that sells $20 billion in equity and $80 billion in debt is said to
be 20% equity-financed and 80% debt-financed. The firm's ratio of debt to
total financing, 80% in this example, is referred to as the firm's leverage. In
reality, capital structure may be highly complex and include tens of sources.
Gearing Ratio is the proportion of the capital employed of the firm which come
from outside of the business finance, e.g. by taking a short term loan etc.

9
The Modigliani-Miller theorem, proposed by Franco Modigliani and Merton
Miller, forms the basis for modern thinking on capital structure, though it is
generally viewed as a purely theoretical result since it assumes away many
important factors in the capital structure decision. The theorem states that, in
a perfect market, how a firm is financed is irrelevant to its value. This result
provides the base with which to examine real world reasons why capital
structure is relevant, that is, a company's value is affected by the capital
structure it employs. These other reasons include bankruptcy costs, agency
costs, taxes, information asymmetry, to name some. This analysis can then be
extended to look at whether there is in fact an optimal capital structure: the
one which maximizes the value of the firm. Capital structure in a perfect
market

Main article: Modigliani-Miller theorem

Assume a perfect capital market (no transaction or bankruptcy costs; perfect

information); firms and individuals can borrow at the same interest rate; no
taxes; and investment decisions aren't affected by financing decisions.
Modigliani and Miller made two findings under these conditions. Their first
'proposition' was that the value of a company is independent of its capital
structure. Their second 'proposition' stated that the cost of equity for a
leveraged firm is equal to the cost of equity for an unleveraged firm, plus an
added premium for financial risk. That is, as leverage increases, while the
burden of individual risks is shifted between different investor classes, total
risk is conserved and hence no extra value created.

Their analysis was extended to include the effect of taxes and risky debt.
Under a classical tax system, the tax deductibility of interest makes debt
financing valuable; that is, the cost of capital decreases as the proportion of
debt in the capital structure increases. The optimal structure, then would be to
have virtually no equity at all.

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Despite all the differences among companies, there are only a few sources of funds
available toallfirms.

1. They make profit by selling a product for more than it costs to produce. This is the
most basic source of funds for any company and hopefully the method that brings in
the most money.

2. Like individuals, companies can borrow money. This can be done privately
through bank loans, or it can be done publicly through a debt issue. The drawback of
borrowing money is the interest that must be paid to the lender.

3. A company can generate money by selling part of itself in the form of shares to
investors, which is known as equity funding. The benefit of this is that investors do
not require interest payments like bondholders do. The drawback is that further
profits are divided among all shareholders.

In an ideal world, a company would bring in all of its cash simply by selling goods
and services for a profit. But, as the old saying goes, "you have to spend money to
make money," and just about every company has to raise funds at some point to
develop products and expand into new markets.

When evaluating companies, it is most important to look at the balance of the major
sources of funding. For example, too much debt can get a company into trouble. On
the other hand, a company might be missing growth prospects if it doesn't use
money that it can borrow.

STATISTICAL TOOL :

The chi-square test (KHGR2) is the most commonly used method for
comparing frequencies or proportions. It is a statistical test used to determine
if observed data deviate from those expected under a particular hypothesis.
The chi-square test is also referred to as a test of a measure of fit or

11
"goodness of fit" between data. Typically, the hypothesis tested is whether or
not two samples are different enough in a particular characteristic to be
considered members of different populations. Chi-square analysis belongs to
the family of univariate analysis, i.e., those tests that evaluate the possible
effect of one variable (often called the independent variable) upon an
outcome (often called the dependent variable).

The chi-square analysis is used to test the null hypothesis (H0), which is the
hypothesis that states there is no significant difference between expected and
observed data. Investigators either accept or reject H0, after comparing the
value of chi-square to a probability distribution. Chi-square values with low
probability lead to the rejection of H0 and it is assumed that a factor other than
chance creates a large deviation between expected and observed results. As
with all non-parametric tests (that do not require normal distribution curves),
chi-square tests only evaluate a single variable, thus they do not take into
account the interaction among more than one variable upon the outcome.

A chi-square analysis is best illustrated using an example in which data from a

population is categorized with respect to two qualitative variables. Table 1
shows a sample of patients categorized with respect to two qualitative
variables, namely, congenital heart defect (CHD; present or absent) and
karyotype (trisomy 21, also called Down syndrome, or trisomy 13, also called
Patau syndrome). The classification table used in a chi-square analysis is
called a contingency table and this is its simplest form (2 x 2). The data in a
contingency table are often defined as row (r) and column (c) variables.

In general, a chi-square analysis evaluates whether or not variables within a

contingency table are independent, or that there is no association between
them. In this example, independence would mean that the proportion of
individuals affected by CHD is not dependent on karyotype; thus, the

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proportion of patients with CHD would be similar for both Down and Patau
syndrome patients. Dependence, or association, would mean that the
proportion of individuals affected by CHD is dependent on kayotype, so that
CHD would be more commonly found in patients with one of the two
karyotypes examined.

Up to this point, all of our discussion of statistical procedures has been

focused on the analysis of "quantitative" data. But some of the variables in
behavioural research are not quantitative. Instead, they are "qualitative" in
nature. A qualitative variable is one where the possible "measurements" are
not measurements as such but quantities or frequencies of things that occur in
categories. Religious affiliation, gender, or which brand of dishwashing
detergent you prefer are examples.

A very useful test for this type of data is the Chi-square test. It uses counts or
frequencies as data rather than means and standard deviations. So we can
compare how many people or responses or things fall into one category
instead of another compared to some hypothesised or expected number.
Unfortunately SPSS does not do one sample chi-square test. However,
because it is such a useful and simple test it is included here.

The tests involving the use of 2 are usually considered as part of the branch
of nonparametric statistics since we examine the statistics of category
membership (nominal or ordinal measurement) rather than the statistics of
means and standard deviations (interval or ratio measurement). The
assumption of normality is not required in 2 tests.

The Chi Square Test is a statistical test which consists of three different types
of analysis 1) Goodness of fit, 2) Test for Homogeneity, 3) Test of
Independence.

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The Test for Goodness of fit determines if the sample under analysis was
drawn from a population that follows some specified distribution.

The Test for Homogeneity answers the proposition that several populations
are homogeneous with respect to some characteristic.

The Test for independence (one of the most frequent uses of Chi Square) is
for testing the null hypothesis that two criteria of classification, when applied to
a population of subjects are independent. If they are not independent then
there is an association between them.

Chi Square is the most popular discrete data hypothesis testing method.
test that uses the chi-square statistic to test the fit between a theoretical
frequency distribution and a frequency distribution of observed data for which
each observation may fall into one of several classes.

Introduction of Hypothesis:-

Stastical inference is that branch of stastics which is concerned with using

probability concept to deal with the uncertainty in decision-making

It refers to the process of selecting and using sample stastic to draw

inference about population parameters based on a subset of it the sample
drawn from population.

Hypothesis Testing:-

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 To test some hypothesis about parent population from which the sample is
drawn.

Estimation:-

To use the stastic obtain from the sample as estimation of the unknown
parameter population from the sample is drawn.

Hypothesis Testing:-

Hypothesis testing begins with an assumption called a hypothesis that we

make about a population parameters.

“A hypothesis in statistics is simply a quantitative statement about a

population”.

Procedure of testing Hypothesis:-

Set up a Hypothesis:-

The first thing in hypothesis testing is to set up a hypothesis about a

population parameters. Then we collect sample data produce sample stastics.
And use this information to describe how likely it is that our hypothesized
population parameters is correct. Say we assume a certain value for a
population mean. To test the validity of our assumption we gather sample data
and determine the difference between hypothesized value and actual value of
the sample mean. Then we judge whether the difference is significant to
smaller than difference the greater than the likely hood that our hypothesized
value for the mean is correct. The larger the difference the smaller than likely
hood.
The conversional approach to hypothesis testing is not to construct a single
hypothesis but rather than to set up two different hypothesis. This hypothesis

15
must be so constructed that if one hypothesis is accepted. The other is
rejected and vice versa.

Hypothesis are two types:-

• Null Hypothesis
• Alternative Hypothesis.

By using Null hypothesis satisfying the object of Industry analysis calculate

value of is more than the tabulated value of chi-square test. When the
hypothesis is rejected. So, we conclude that growth of the industry depends
up on sources of funds.

Null-hypothesis is very useful tool in testing the significance of difference. In

it’s simplest form the hypothesis asserts that there is no real difference in
sample and the population.

In the particular matter under consideration and that one difference found is
accidental and un-important aring out of flactuautions of sampling. The null
hypothesis is akin to the legal principle. That a man is innocent until he is
proved guilty.. ex:- Find out whether a particular drug effective including
malaria. We will take the null-hypothesis.

Since many practical problems aim at establishment of statistical significance.

Differences rejection of the null hypothesis may they indicates the success of
statistical project.

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 1. Source of funds : (Kcp cement ) :
Items 2005 % 2006 % 2007 % 2008 %

Eq.cap 12.89 8.8 12.89 7.5 12.89 6.04 12.89 5.23

Reserves 86.10 58.96 96.25 56.67 129.85 60.96 176.98 71.83
Secured 21.03 14.40 34.16 20.14 44.25 20.7 31.99 12.99
Un- 25.99 17.84 26.55 15.72 26.38 12.3 24.39 9.95
secured
Total 146.01 169.86 213.37 246.26

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 80
70
60 eq.cap
50 reserves
40 secured
30 unsecured
20 equity
10
0
2005 2006 2007 2008

Interpretation :

1. The reserves of the company are increasing continuously from year to

year.
2. the equity capital of the company remains constant for the observed 4
years.
3. In the external funds. The company is depending on secured than
unsecured.

2. Source of funds : (jk cement ) :

Items 2005 % 2006 % 2007 % 2008 %

Eq.cap 49.93 8.18 69.93 7.63 69.93 6.70 69.93 5.49

Reserves 6.33 1.03 285.98 31.44 445.44 42.70 692.26 54.39
Secured 474.65 77.72 443.14 48.72 429.94 41.21 382.79 30.12
Un- 79.78 13.07 110.40 12.16 97.82 9.39 127.74 10
secured
Total 610.69 909.44 1043.12 1272.71

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 90
80
70 eq.cap
60
equity
50
reserves
40
30 secured
20 un-secured
10
0
2005 2006 2007 2008

Interpretation :

1. The equity capital has increased from 2005-2006 and remains constant for

next 3 years.

2. secured loans has been decreased contiously from year to year.

3. The total sources of funds of the company has been increased contiously.

3. Source of funds : (ACC cement ) :

Items 2005 % 2006 % 2007 % 2008 %

Eq.cap 178.74 5.98 187.48 4.79 187.83 4.21 187.88 3.47

Reserves 1418.45 47.20 2955.16 75.50 3964.78 88.91 4739.85 87.61
Secured 1141.07 37.97 720.96 18.42 266.03 5.96 450.00 8.31
Un- 266.66 8.85 50.20 1.29 40.38 0.92 32.03 0.61
secured
Total 3004.92 3913.8 4459.02 5409.76

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 100
90
80
70 eq.cap
60 equity
50 reserves
40 secured
30
un-secured
20
10
0
2005 2006 2007 2008

Interpretation :
1. The reserves of the company has been increased continuously from year to
year.
2. secured & un-secured both has been decreased from year to year.
3. The equity capital increased for 1 year and remains constant for next 3 years
4. The reserves of the company has increased contiously from year to year.

Industrial-Analysis :
Sources 2005 2006 2007 2008
Eq.cap., 7.65 6.64 4.57 4.73
Reserves&surplus 35.73 54.53 64.19 71.27
Secured-loans 43.36 29.09 23.62 17.14
Un-secured 13.26 9.74 7.62 6.86

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 80
70
60
50 eq.cap
40 reserves
30 secured
un-secured
20
10
0
2005 2006 2007 2008

Interpretation :
1. In this cement industry the companies depending on equity capita has been
decreasing slowly from year to year.
2. Depending on the reserves has been increased continuously from year to
year.
3. Depending on the secured loans & unsecured loans are also decreased
continuously from year to year.
4. The cement industry is mainly depending on internal funds (reserves) as
sources for the companies.

Statstical-tool : ( chi-test )

Sources 2005 2006 2007 2008 Total

Eq.cap., 7.65 6.64 4.57 4.73 23.59
Reserves&surplus 35.73 54.53 64.19 71.27 225.72
Secured-loans 43.36 29.09 23.62 17.14 113.21
Un-secured 13.26 9.74 7.62 6.86 37.48
Total 100 100 100 100 400

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Expected frequency :
5.89 5.89 5.89 5.89
56.43 56.43 56.43 56.43
28.30 28.30 28.30 28.30
9.37 9.37 9.37 9.37

O E (O-E)2 (O-E)2 / E
7.65 5.89 3.09 0.52
35.73 56.43 428.49 7.59
43.36 28.3 226.8 8.01
13.26 9.37 151.3 1.61
6.64 5.89 0.56 0.09
54.53 56.53 3.61 0.06
29.09 28.30 0.62 0.021
9.74 9.37 0.136 0.014
4.57 5.89 1.74 0.29
23.62 28.30 21.90 0.77
7.62 9.37 3.06 0.32
4.73 5.89 1.34 0.22
71.27 56.43 220.22 3.90
17.14 28.30 124.54 4.4
6.86 9.37 6.3 0.67

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23.59 5.89 313.29 53.19
225.72 56.43 28659.1 507.86
113.21 28.30 7200 254.7
37.48 9.37 790 84.3
Total ---------------- --------- 947.35

)(2 = [ ∑ (O – E)2 / E ] = 947.35

V = [ r – 1] [ c – 1] = (4-1) (4-1) = 9..

V = )(2 0.05 + 16.9
V = 16.9+3.84 = 20.74

Note : Here table value is more than the calculated value of chi-square test.
Then the hypothesis is rejected.. so, we conclude that gowth of industry is
depends upon source of funds…

FINDINGS :

1. That the selected companies are depending on internal funds in the

cement-industry.
2. That the reserves of the companies has increased continuously from
year to year.
3. That the selected companies in the cement industry mainly depends on
reserves as main sources.
4. The companies depending a small portion on secured and unsecured
loans also.
5. But overall industry is mainly depending on the reserves when
compared to the secured & unsecured loans.
6. The expenses of the jk cement has been increased continuously in
some ares like (manufacturing, personnel, admistrative. Etc.)
7. Some plants are adopting futuristic plan such as setting up captive
power plant, moving closer to the customers by creating clicker,

23
 crushing, and capacity in key markets, to be more customer centric to
generate better revenue.

SUGGESTIONS :

1. Companies in industry are mostly maintaining constant equity capital for

the 3 to 4 years, if the companies may issue new equity shares, it may
raise the sources for the companies.

2. Companies expenses are increased continuously, if they properly

maintained the expenditure may decrease and it will lead to increase
revenue for the company.

3. By adopting the innovative technology by the companies in cement

industry may lead to higher production.

4. The industry depending on reserves as main source of funds, if another

alternative is made it would be better for the industry.

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25