A

PROJECT REPORT
ON
FIXED ASSET MANAGEMENT
AT
BEVCON INDUSTRY.
By
DOUNTULA ASHWINI
H.T 2166146672146
Project submitted in partial fulfillment for the award of the Degree of
MASTER OF BUSINESS ADMINISTRATION
SUBMITED TO
OSMANIA university, HYDERABAD
Under the guidance of

SUPRABATH

INSITUTE OFMANAGEMENT AND COMPUTER SCIENCE

(Affiliated to OSMANIA UNIVERSITY)
CHEERYAL(v) kEESARA(mdl) R.R(Dist) T.S
2014-2016

CERTIFICATE

This is to certify that this project report titled A study on FIXED

ASSES MANAGEMENT with respect to BEVCON INDUSTRY is
bonafied work done by DOUNTULA ASHWINI of IV Semister MBA,
under our guidance and submitted to the Department of Management
Studies, SUPRABATH INSITUTE OF MANAGEMENT AND
COMPUTER SCIENCE in partial fulfillment for the award of Master
of Business Administration during the year 2014-2016.

Name of the student

Signature of the Guide

DECLARATION

I hereby declare that this project report titled FIXED ASSET

MANAGEMENT BEVCON submitted by me to the department of
Business Administration, ., is a bonafide work
under taken by me and it is not submitted to any other university or
institution for the award of any degree diploma/certificate or published
any time before.

Date:
Place:
(.)

ACKNOWLEDGEMENT
The highest happiness that accompanies the successful completion
of any task would be incomplete without the expression of gratitude to all
those people who have helped me throughout this project as success is
the abstract of hard work. I would like to express my heartfelt gratitude
to Mr. . (Manager ) for permitting me to do the
project in and also for his inspiring guidance, support, valuable inputs
and constructive criticism to develop and complete this project.

I express my heartfelt thanks to the . Team and all the

employees of the organization for co-operation. I am also thankful for
the encouragement extended by Mr. Principal,
SPURABATH COLLEGE OF MANAGEMENT AND COMPUTER
SCIENCE college and Ms. PAVAN Guide , for his constant support and
co operation. Last but not the least; I would like to thank my parents and
friends for their constant support and co-operation with out which I
would have not completed this project in the stipulated.

ABSTRACT

This research work is on Fixed Asset Management in Public Sector

Organizations with a reflection on its Economic Impact on a Developing
Country with focus on Nnamdi Azikiwe University (NAU). The problem
necessitating this study is the stealing, vandalisation and abandonment of
fixed assets in the public sector organizations in Nigeria. The main
objective of the paper, therefore, is to find the causes of these problems
and ways of solving them. In carrying out this research, both primary
and secondary data were used. Simple percentages and the chi-square
statistical tool were used in analyzing the data. After the research, a
number of findings were made which included the fact that Nigerians
have poor maintenance culture among others. Consequent upon the
findings, we concluded that there is need to inculcate discipline, care and
trustworthiness in the lives of staff, in the light of the above conclusion,
some recommendations were made which included that staff should be
adequately motivated (financially and otherwise) to enable the staff, not
only care for these properties, but to look beyond looting them. The
researchers believe that if all these are put in place, Fixed Asset
Management would yield its maximum economic benefit to any
developing country.

INDEX

S.No:

CONTENTS

PAGE NO.

CHAPTER-1

1-11

INTRODUCTION

Scope of the Study

Objectives of the Study
Methodology of the Study
Limitations of the Study
CHAPTER-2

11-17

REVIEW OF LITERATURE

CHAPTER-3

17-43

INDUSTRY PROFILE
&
COMPANY PROFILE

CHAPTER-4

43-69

DATA ANALYSIS AND INTERPRETATION

CHAPTER-5

69-81
FINDINGS & CONCLUSIONS
SUGGESTIONS
BIBLIOGRAPHY

INTRODUCTION

INTRODUCTION:
Fixed Assets are the assets held with the intention of being used on
continuous basis for the purpose of producing or providing goods or
services and are not held for resale in the normal course of business.
E.g.: Land and Buildings, Plant and Machinery, Motor Vehicles,
Furniture and Fixtures.
Valuation of fixed assets is important to have fair measure of
profit or loss and financial position of the concern. Fixed assets are
meant for use for many years. The value of these assets decreases with
their use or with time or many other reasons. A portion of fixed assets are
reduced by usage are converted into cash through charging depreciation.
For

correct

measurement

of

income,

proper

measurement

of

depreciation is essential, as depreciation constitutes a Part of total cost of

production.
Financial transactions are recorded in the books, keeping in view the
going concern aspect of the business unit. In going concern aspect it is
assumed that the business unit has reasonable expectation of continuing
the business for a profit for an indefinite period of time. This assumption
provides much of the justification for recording fixed assets at original
cost and depreciating them in a systematic manner without reference to
their current realizable value.
It is useless to record the fixed assets in the balance sheet at their
estimated realizable values if there is no immediate expectation of selling
them. So, they are shown at their book value (i.e., Cost Depreciation)

and not at current realizable value. The market value of the fixed assets
may change with the passage of time, but for accounting purpose it
continues to be shown in the books in historical cost.
The cost concept of accounting states that depreciation calculated
on the basis of historical cost of old assets is usually lower than the
amount calculated at current value/ replacement value. These results in
more profits, which if distributed in full will lead to reduction in capital.

ACCOUNTING STANDARD FOR FIXED ASSETS (AS-10):

AS-10 on Accounting for Fixed Assets has been made mandatory with effect
from 01.2009.1991. According to the AS-10, Fixed Asset is an asset held with
the intention of being used on continuous basis for the purpose of producing
or providing goods or services and is not held for resale in the normal course
of action. Gross book value of fixed asset is its historical cost or other amount
substituted for historical costs in the books of accounts or financial
statements. When the amount of depreciation is deducted from gross book
value then it is Net Book Value.

Cost of Fixed Assets should consist of purchase price including import duties
etc., and attributable cost of bringing the asset to its working condition for its
intended use. Financing costs relating to borrowed funds attributable to
construction or acquisition of fixed assets for the period up to the acquisition
or completion. Expenditure incurred in start-up and commissioning of the
project including test runs.
Revaluation of assets: Fixed assets may be restated in the value with the help
of appraisal under taken by the competent values .Such valuation of assets is
called revaluation.

FIXED ASSETS MANAGEMENT CYCLE

The fixed assets management cycle is the cycle of activities from the
acquisition of the asset to the final disposition of the assets at the end of their
useful life. The cycle has 7 steps:
Acquisition: The cycle begins with the acquisition, purchase, gift or
otherwise, of an asset and the determination that the asset is to be capitalized.
To be capitalized the asset has to meet the agencys capitalization limit and
have a useful life of one year or more.
Receiving: The asset is formally received and accepted by the agency. Receipt
may be verified by entry into an automated purchasing system or by hard
copy document. In the case of donated fixed assets, receipt can be verified by
a letter to the donor.

Payment: Payment is made for the asset according to the terms of the
purchase order or recognition of acceptance of a gift to the donor. The
payment includes the acquisition cost, freight and all other costs to put the
asset. Acquisition cost of donated fixed assets is determined by its fair market
value.
Identification: the asset is identified as an asset, tagged or otherwise
identified and entered into the fixed assets management inventory system.
Assets are identified with a permanently attached identification tag, etching
or by painting on the identification number.

Inventory: The longest step in the cycle. The asset is used over its useful life.
Assets are inventoried and accounted for during this step until they are no
longer needed. The agencys policies and procedures determine the inventory
interval.
Excess: the asset is declared as excess to the users needs. The asset may be
transferred to another user where it will continue to be used, accounted for
and inventoried. Assets may be declared as excess more than once until the
asset is no longer needed.
Surplus: the last step in the fixed assets management cycle. The asset is
declared to be surplus property and to have no further value to the agency.
The asset is disposed of by sale or discarding depending on the residual value.
Sale can be by auction, sealed bid, spot sale, or through a sales store.

FIXED ASSETS MANAGEMENT CYCLE

NEED FOR THE STUDY:

As fixed assets play an important role in companys objectives. These fixed
are not convertible or not liquidable over a period of time. The owners funds
and long term liabilities are invested in fixed assets. Since, fixed assets play
dominant role in the business and the firm has utilization of fixed assets. So,
ratio contributes in analyzing and evaluating the performance of the
business.
If firms fixed assets are idle and not utilized properly it affects the long-term
sustainability of the firm, which may affect liquidity and solvency and
profitability positions of the company. The idle of fixed assets leads to a
tremendous loss in financial cost and intangible cost associate of it. So, this
will lead to evaluation of fixed assets performance. Comparing with similar
company and comparison with industry standards.
So, Chosen a study to conduct fixed assets analysis of BEVACONCABLES
PVT.LTD using ratio in comparison with previous year performance.

SCOPE OF THE STUDY:

1. The project is covered on fixed assets of Bevcon group of Industries
drawn from annual reports of the company. The subject matter is
limited to fixed assets, its analysis and its performance but not to any
other areas of accounting corporate, marketing and financial matters.

OBJECTIVES OF THE STUDY:

The following are the objectives of the study
1. The study is conducted to know the amount of capital expenditure
made by the company during study period.
2. The study is conducted to evaluate fixed assets performance of
Bevcon group of Industries The study is conducted to evaluate the
fixed assets turnover of Bevcon group of Industries The study is
conducted to evaluate depreciation and method of depreciation
adopted by Bevcon group of Industries.
3. The study is conducted to know the amount of finance made by longterm liabilities and owners funds towards fixed assets.
4. The study is conducted to evaluate whether fixed assets are giving
adequate returns to the company
5. Study is conducted to evaluate that if fixed assets are liquidated, what
proportion of it will contribute for the payment of owners fund and
long-term liabilitie

METHODOLOGY:
The data used for the analysis and interpretation is from annual reports of
the company i.e., secondary forms of data. Ratio analysis is used for
calculation purpose.
The project is presented using tables, graphs and with their interpretations.
No survey is undertaken or observation study is conducted by evaluating
fixed assets performance of the company.
SOURCES OF DATA:
The data needed for this project is collected from the following sources:
1. The data is adopted purely from secondary sources.
2. The theoretical contents are gathered purely from eminent text books and
references.
3. The financial data and information is gathered from annual reports of the
company.

PERIOD OF STUDY:
Made a study for the period of 4 years .2010-20111 to 2013-2014

IMPORTANCE:
Fixed assets are the assets which cannot be liquidated into cash within one
year. The huge amounts of funds of the company are invested in these assets.
Every year company invests an additional fund in these assets directly or
indirectly. The survival and other objectives of the company depend on
operating performance of management i.e. effective utilization of these assets.
Firm has evaluated the performance, of fixed assets with proportion of
capital employed on net assets turnover and other parameters which are
helpful for evaluating the performance of fixed assets.
LIMITATIONS:
The following are the limitations for the study
1. The study is limited into the date and information provided by the And
its annual reports.
2. The report may not provide exact fixed assets status and position of
Bevcon group of Industries it may be varying from time to time and
situation to situation.
3. This report is not helpful in investing in Bevcon group of Industries
4. Either through disinvestments or capital market.
5. The accounting procedure and other accounting principles are limited
by the changes made by the company, may vary fixed assets
performance.

REVIEW OF LITERATURE

MANAGEMENT OF FIXED ASSETS:

The selection of various fixed assets required for creating the desired
production facilities and the decision regarding the determination of level of
fixed assets in the capital structure is an important decision for the company
to take for the smooth running of business. The decisions relating to fixed
assets involve huge funds for long period of time and are generally of
irreversible nature affecting the long profitability of the business. Thus,
management of fixed asset is of vital importance to any organization.
The process of Fixed Assets Management involves:
1. Selection of most worthy projects from the different alternatives of
fixed assets.
2. Arranging the requisite funds/capital for the same.
The first important consideration is to acquire only that amount of fixed
assets, which will be just sufficient to ensure smooth and efficient running of
the business. In some cases it may be economical to buy certain assets in a lot
size. Another important consideration to be kept in mind is possible increase
in the demand of the firms product needs the expansion of activities. Hence
a firm should have that amount of fixed assets, which could adjust to increase
demand.
Another aspect of fixed assets management is that a firm must ensure buffer
stocks of certain essential equipments to ensure uninterrupted production in
the events of emergencies. Sometimes, there may some breakdown in some
equipments or services affecting the entire production. It is always better to
have some alternative arrangements to deal with such situations but at the

same time the cost of carrying such buffer stock should also be evaluated.
Efforts should also be made to minimize the level of buffer stock of fixed
assets so that there will be maximum utilization during that period.
Fixed assets management is an accounting process that seeks to track Fixed
assets for the purposes of financial accounting, preventive Maintenance, and
theft deterrence. Many organizations face a significant challenge to track the
location, quantity, condition, maintenance and depreciation status of their
fixed assets. A popular approach to tracking fixed assets utilizes serial
numbered Asset Tags, often with bar codes for easy and accurate reading.
Periodically, the owner of the assets can take inventory with a mobile barcode
reader and then produce a report. Off-the-shelf software packages for fixed
asset management are marketed to businesses small and large. Some
Enterprise Resource Planning systems are available with fixed assets
modules.
Investment management is the professional management of various securities
(shares, bonds etc) and other assets (e.g. real estate), to meet specified
investment goals for the benefit of the investors. Investors may be institutions
(insurance companies, pension funds, corporations etc.) or private investors
(both directly via investment contracts and more commonly via collective
investment schemes eg. mutual funds) The term asset management is often
used to refer to the investment management of collective investments, whilst
the more generic fund management may refer to all forms of institutional
investment as well as investment management for private investors.

Investment managers who specialize in advisory or discretionary management

on behalf of (normally wealthy) private investors may often refer to their

services as wealth management or portfolio management often within the

context of so-called "private banking". The provision of 'investment
management services includes element of financial analysis, asset selection,
stock selection, plan implementation and ongoing monitoring of investments.
Investment management is a large and important global industry in its own
right responsible for caretaking of trillions of dollars, Euros, pounds and yen.
Coming under the remit of financial services many of the world's largest
companies are at least in part investment managers and employ millions of
staff and create billions in revenue. Fund manager (or investment advisor in
the U.S.) refers to both a firm that provides investment management services
and an individual(s) who directs 'fund management' decisions

Ran
k

Company

Assets under
management

Country

(US$million)
1.

Barclays Global Investors

1,400,491

UK

2.

State Street Global Advisors

1,367,269

US

3.

Fidelity Investments

1,299,400

US

4.

Capital Group Companies

1,20100,435

US

5.

Legg Mason

891,400

US

6.

The Vanguard Group

852,000

US

7.

Allianz Global Investors

790,513

8.

9.

10.

JPMorgan Asset
Management
Mellon Financial
Corporation

Deutsche Asset Management

German
y

782,646

US

738,294

US

723,366

German
y

Fixed asset, also known as property, plant, and equipment (PP&E), is a

term used in accountancy for assets and property which cannot easily be
converted into cash. This can be compared with current assets such as
cash or bank accounts, which are described as liquid assets.

In most cases, only tangible assets are referred to as fixed. Fixed assets
normally include items such as land and buildings, motor vehicles,
furniture, office equipment, computers, fixtures and fittings, and plant
and machinery. These often receive favorable tax treatment
(depreciation allowance) over short-term assets because they depreciate
over time.

INDUSTRY PROFILE
&
COMPANY PROFILE

CEMENT INDUSTRY IN INDIA:

Introduction
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 (CAGR) of 9.7 per cent to reach 272 million tons (MT) in the
period 20062013. It is expected to touch 407 MT by 2020.
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 countrys
cement industry.
Notwithstanding its current position one of the leaders in cement
production, Indias riches in the sector remain somewhat untapped.
Lafarge's India business has been very successful and the country is
among the top 10 markets globally for Lafarge. But going forward, we
should rank higher because of the potential of the Indian market ,says
Mr. Martin Kriegner, CEO of the Indian branch of the worlds largest
cement manufacturer, Lafarge.
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 Indias

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).
Investments:
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 authorized 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 undisclosed
amount.

Government Initiatives:
Giving impetus to the market, the Indian government plans to roll out
public-private partnership (PPP) projects worth Rs 1 trillion (US$ 15.67
billion) over the next six months. The Principal Secretary in the Prime
Minister's Office (PMO) will monitor these projects.
Also, the steering group appointed by Dr Manmohan Singh, Prime
Minister of India, to accelerate infrastructure investments, has set
deadlines for the awarding of projects such as Mumbai rail corridor and
Navi Mumbai Airport, among others.
The Goa State Pollution Control Board (GSPCB) has signed a
memorandum of understanding (MoU) with Vasavdatta Cement, a
company with its plant in Karnataka. The firm would use the plastic
waste collected by the state agencies and village panchayats from Goa as
fuel for its manufacturing plant.

Road Ahead:
The globally-competitive cement industry in India continues to witness
positive trends such as cost control, continuous technology upgradation
and increased construction activities.
Furthermore, major cement manufacturers in India are progressively
using other alternatives such as bioenergy as fuel for their kilns. 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
(SEZs) being developed across the country, there is a demand for cement.
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.
The 4th Annual India Cement Sector Business Sentiment Survey is
nearly out and the India Construction & Building Materials Journal
provides the opportunity of an exclusive look at the surveys results
before their sharing with the wider audiences. We are glad to be able to
present here some of the survey highlights and provide our readers with
before-hand data regarding the views and expectations of cement
industry professionals.
Optimism continues to be the name of the game for the Indian cement
industry a function of long-term trends as well as human nature. But
on a closer look, the survey shows that the optimism only runs skin deep
and that it has already been eroded by an increasing percentage of

industry members who feel dissatisfied with the overall performance of

the field last year.
For instance, the percentage of those who believe the industry performed
well dropped from 43 percent in 2012 to 26 percent in 2013, while the
number of respondents who believe the industry performed poorly
almost tripled from 8 percent last year to 22 percent in 2013. Regarding
the future evolution of the industry, survey participants continue to be on
the optimistic side and hope for a somewhat better or much better
performance compared to the last 6 months.
China tackles pollution and overcapacity
2013 has been the year that China's central planners took action against
cement production overcapacity and pollution. Consolidation plans for
the industry followed falling profits for cement producers in 2012.
However, record air pollution levels in Beijing in early 2013 shut the city
down, raised public awareness and gave the government a strong lever to
encourage further industry consolidation through environmental
controls. By the middle of year profits of major producers were up but
production was also up. Finally in December 2013, China started to
launch its emissions trading schemes (ETS), led by Guangdong province,
to create what will be the second largest carbon market in the world
after the EU ETS.
India faces a sticky wicket
Meanwhile, the world's second largest cement producing country has
faced poor profits and growth for cement producers blamed on paltry
demand,

piddling

prices

and

proliferating

production

costs.

Compounding that, the Indian Rupee fell to a historic low relative to the

US Dollar in mid-2013, further putting pressure on input costs. Holcim

reacted to all of this by releasing plans to simplify its presence in the
country between Holcim India, Ambuja and ACC.
Sub-Saharan Africa draws up the battle lines
Competition in sub-Saharan Africa is set to intensify when Nigeria's
Dangote Cement opens its first cement plant in South Africa in early
2014. It is the first time Africa's two largest cement producers, Dangote
and South Africa's PPC, will produce cement in the same country.
Future clashes will follow across the region as each producer increasingly
advances toward the other.
The Kingdom needs cement... and workers
Saudi Arabian infrastructure demands have created all sorts of
reverberations across the Middle Eastern cement industry and beyond as
the nation pushes on to build its six 'economic' cities amongst other
projects. Back in April 2013 King Abdullah bin Abdulaziz Al Saud of
Saudi Arabia issued an edict ordering the import of 10Mt of cement.
Then some producers started to report production line shutdowns in the
autumn of 2013 as they buckled under the pressure, although they
consoled themselves with solid profit rises. Now, cement sales have fallen
following a government crackdown on migrant workers that has hit the
construction sector.

Competition concerns in Europe:

Europe may be slowly emerging from the economic gloom but anti-trust
regulators have remained vigilant. An asset swap between Cemex and
Holcim over units in the Czech Republic, Germany and Spain has
received attention from the European Commission. In the UK the
Competition Commission has decreed that further action is required for
the cement sector following the creation of new player Hope
Construction Materials in 2012. Lafarge Tarmac may now have to sell
another one of its UK cement plants to increase more competition into
the market. Elsewhere in Europe, Belgium regulators took action in
September 2013 and this week we report on Polish action against cartellike activity.
Don't forget South-East Asia, Brazil or Russia! :
Growth continues to dominate these regions and major sporting
tournaments are on the way in Brazil and Russia, further adding to local
cement demand. Votorantim may have cancelled its US$4.8bn initial
public offering in August 2013 but it is still has the highest cement
production capacity in Brazil. Finally, Indonesia may not have had any
'marquee' style story to sum up 2013 but it continues to regularly
announce cement plant builds. In July 2013 the Indonesian Cement
Association announced that cement sales growth had fallen to 'just' 7.5%
for the first half of 2013.
In the most general sense of the word, a cement is a binder, a
substance which sets and hardens independently, and can bind other
materials together. The word "cement" traces to the Romans, who used
the term "opus caementicium" to describe masonry which resembled
concrete and was made from crushed rock with burnt lime as binder.
The volcanic ash and pulverized brick additives which were added to the

burnt lime to obtain a hydraulic binder were later referred to as

cementum, cimentum, cment and cement. Cements used in construction
are characterized as hydraulic or non-hydraulic.
The most important use of cement is the production of mortar and
concretethe bonding of natural or artificial aggregates to form a strong
building material which is durable in the face of normal environmental
effects.
Concrete should not be confused with cement because the term cement
refers only to the dry powder substance used to bind the aggregate
materials of concrete. Upon the addition of water and/or additives the
cement mixture is referred to as concrete, especially if aggregates have
been added.
It is uncertain where it was first discovered that a combination of
hydrated non-hydraulic lime and a pozzolan produces a hydraulic
mixture (see also: Pozzolanic reaction), but concrete made from such
mixtures was first used on a large scale by Roman engineers.They used
both natural pozzolans (trass or pumice) and artificial pozzolans (ground
brick or pottery) in these concretes. Many excellent examples of
structures made from these concretes are still standing, notably the huge
monolithic dome of the Pantheon in Rome and the massive Baths of
Caracalla. The vast system of Roman aqueducts also made extensive use
of hydraulic cement. The use of structural concrete disappeared in
medieval Europe, although weak pozzolanic concretes continued to be
used as a core fill in stone walls and columns.

Modern cement:

Modern hydraulic cements began to be developed from the start of the

Industrial Revolution (around 1800), driven by three main needs:
Hydraulic renders for finishing brick buildings in wet climates
Hydraulic mortars for masonry construction of harbor works etc, in
contact with sea water.
Development of strong concretes.
In Britain particularly, good quality building stone became ever more
expensive during a period of rapid growth, and it became a common
practice to construct prestige buildings from the new industrial bricks,
and to finish them with a stucco to imitate stone. Hydraulic limes were
favored for this, but the need for a fast set time encouraged the
development of new cements. Most famous was Parker's "Roman
cement." This was developed by James Parker in the 1780s, and finally
patented in 1796. It was, in fact, nothing like any material used by the
Romans, but was a "Natural cement" made by burning septaria nodules that are found in certain clay deposits, and that contain both
clay minerals and calcium carbonate. The burnt nodules were ground to
a fine powder. This product, made into a mortar with sand, set in 515
minutes. The success of "Roman Cement" led other manufacturers to
develop rival products by burning artificial mixtures of clay and chalk.
John Smeaton made an important contribution to the development of
cements when he was planning the construction of the third Eddystone
Lighthouse (1755-9) in the English Channel. He needed a hydraulic
mortar that would set and develop some strength in the twelve hour
period between successive high tides. He performed an exhaustive
market research on the available hydraulic limes, visiting their
production sites, and noted that the "hydraulicity" of the lime was
directly related to the clay content of the limestone from which it was
made. Smeaton was a civil engineer by profession, and took the idea no

further. Apparently unaware of Smeaton's work, the same principle was

identified by Louis Vicat in the first decade of the nineteenth century.
Vicat went on to devise a method of combining chalk and clay into an
intimate mixture, and, burning this, produced an "artificial cement" in
1817. James Frost,orking in Britain, produced what he called "British
cement" in a similar manner around the same time, but did not obtain a
patent until 1822. In 1824, Joseph Aspdin patented a similar material,
which he called Portland cement, because the render made from it was in
color similar to the prestigious Portland stone.
All the above products could not compete with lime/pozzolan concretes
because of fast-setting (giving insufficient time for placement) and low
early strengths (requiring a delay of many weeks before formwork could
be removed). Hydraulic limes, "natural" cements and "artificial"
cements all rely upon their belite content for strength development.
Belite develops strength slowly. Because they were burned at
temperatures below 1250 C, they contained no alite, which is
responsible for early strength in modern cements. The first cement to
consistently contain alite was made by Joseph Aspdin's son William in
the early 1840s. This was what we call today "modern" Portland cement.
Because of the air of mystery with which William Aspdin surrounded his
product, others (e.g. Vicat and I C Johnson) have claimed precedence in
this invention, but recent analysis of both his concrete and raw cement
have shown that William Aspdin's product made at Northfleet, Kent was
a true alite-based cement. However, Aspdin's methods were "rule-ofthumb": Vicat is responsible for establishing the chemical basis of these
cements, and Johnson established the importance of sintering the mix in
the kiln.
William Aspdin's innovation was counter-intuitive for manufacturers of
"artificial cements", because they required more lime in the mix (a

problem for his father), because they required a much higher kiln
temperature (and therefore more fuel) and because the resulting clinker
was very hard and rapidly wore down the millstones which were the only
available grinding technology of the time. Manufacturing costs were
therefore considerably higher, but the product set reasonably slowly and
developed strength quickly, thus opening up a market for use in concrete.
The use of concrete in construction grew rapidly from 1850 onwards,
and was soon the dominant use for cements. Thus Portland cement
began its predominant role. it is made from water and sand
Types of modern cement:
Portland cement
Cement is made by heating limestone (calcium carbonate), with small
quantities of other materials (such as clay) to 1450C in a kiln, in a
process known as calcination, whereby a molecule of carbon dioxide is
liberated from the calcium carbonate to form calcium oxide, or lime,
which is then blended with the other materials that have been included in
the mix . The resulting hard substance, called 'clinker', is then ground
with a small amount of gypsum into a powder to make 'Ordinary
Portland Cement', the most commonly used type of cement (often
referred to as OPC).
Portland cement is a basic ingredient of concrete, mortar and most nonspeciality grout. The most common use for Portland cement is in the
production of concrete. Concrete is a composite material consisting of
aggregate (gravel and sand), cement, and water. As a construction
material, concrete can be cast in almost any shape desired, and once
hardened, can become a structural (load bearing) element. Portland
cement may be gray or white.

Portland cement blends

These are often available as inter-ground mixtures from cement
manufacturers, but similar formulations are often also mixed from the
ground components at the concrete mixing plant.
Portland blastfurnace cement contains up to 70% ground granulated
blast furnace slag, with the rest Portland clinker and a little gypsum. All
compositions produce high ultimate strength, but as slag content is
increased, early strength is reduced, while sulfate resistance increases
and heat evolution diminishes. Used as an economic alternative to
Portland sulfate-resisting and low-heat cements.
Portland flyash cement contains up to 30% fly ash. The fly ash is
pozzolanic, so that ultimate strength is maintained. Because fly ash
addition allows a lower concrete water content, early strength can also be
maintained. Where good quality cheap fly ash is available, this can be an
economic alternative to ordinary Portland cement.
Portland pozzolan cement includes fly ash cement, since fly ash is a
pozzolan, but also includes cements made from other natural or artificial
pozzolans. In countries where volcanic ashes are available (e.g. Italy,
Chile, Mexico, the Philippines) these cements are often the most common
form in use.
Portland silica fume cement. Addition of silica fume can yield
exceptionally high strengths, and cements containing 5-20% silica fume
are occasionally produced. However, silica fume is more usually added to
Portland cement at the concrete mixer.
Masonry cements are used for preparing bricklaying mortars and
stuccos, and must not be used in concrete. They are usually complex
proprietary formulations containing Portland clinker and a number of
other ingredients that may include limestone, hydrated lime, air
entrainers, retarders, waterproofers and coloring agents. They are

formulated to yield workable mortars that allow rapid and consistent

masonry work. Subtle variations of Masonry cement in the US are
Plastic Cements and Stucco Cements. These are designed to produce
controlled bond with masonry blocks.
Expansive cements contain, in addition to Portland clinker, expansive
clinkers (usually sulfoaluminate clinkers), and are designed to offset the
effects of drying shrinkage that is normally encountered with hydraulic
cements. This allows large floor slabs (up to 60 m square) to be prepared
without contraction joints.
White blended cements may be made using white clinker and white
supplementary materials such as high-purity metakaolin.
Colored cements are used for decorative purposes. In some standards,
the addition of pigments to produce "colored Portland cement" is
allowed. In other standards (e.g. ASTM), pigments are not allowed
constituents of Portland cement, and colored cements are sold as
"blended hydraulic cements".
Very finely ground cements are made from mixtures of cement with sand
or with slag or other pozzolan type minerals which are extremely finely
ground

together. Such

cements

can

have

the

same

physical

characteristics as normal cement but with 50% less cement particularly

due to their increased surface area for the chemical reaction. Even with
intensive grinding they can use up to 50% less energy to fabricate than
ordinary Portland cements.
Non-Portland hydraulic cements
Pozzolan-lime cements. Mixtures of ground pozzolan and lime are the
cements used by the Romans, and are to be found in Roman structures
still standing (e.g. the Pantheon in Rome). They develop strength slowly,
but their ultimate strength can be very high. The hydration products that

produce strength are essentially the same as those produced by Portland

cement.
Slag-lime cements. Ground granulated blast furnace slag is not hydraulic
on its own, but is "activated" by addition of alkalis, most economically
using lime. They are similar to pozzolan lime cements in their properties.
Only granulated slag (i.e. water-quenched, glassy slag) is effective as a
cement component.
Supersulfated cements. These contain about 80% ground granulated
blast furnace slag, 15% gypsum or anhydrite and a little Portland
clinker or lime as an activator. They produce strength by formation of
ettringite, with strength growth similar to a slow Portland cement. They
exhibit good resistance to aggressive agents, including sulfate.
Calcium aluminate cements are hydraulic cements made primarily from
limestone and bauxite. The active ingredients are monocalcium
aluminate CaAl2O4 (CaO Al2O3 or CA in Cement chemist notation,
CCN) and mayenite Ca12Al14O33 (12 CaO 7 Al2O3 , or C12A7 in CCN).
Strength forms by hydration to calcium aluminate hydrates. They are
well-adapted for use in refractory (high-temperature resistant) concretes,
e.g. for furnace linings.
Calcium sulfoaluminate cements are made from clinkers that include
ye'elimite (Ca4(AlO2)6SO4 or C4A3

in Cement chemist's notation) as a

primary phase. They are used in expansive cements, in ultra-high early

strength cements, and in "low-energy" cements. Hydration produces
ettringite, and specialized physical properties (such as expansion or
rapid reaction) are obtained by adjustment of the availability of calcium
and sulfate ions. Their use as a low-energy alternative to Portland
cement has been pioneered in China, where several million tonnes per
year are produced. Energy requirements are lower because of the lower
kiln temperatures required for reaction, and the lower amount of

limestone (which must be endothermically decarbonated) in the mix. In

addition, the lower limestone content and lower fuel consumption leads
to a CO2 emission around half that associated with Portland clinker.
However, SO2 emissions are usually significantly higher.
"Natural" Cements correspond to certain cements of the pre-Portland
era, produced by burning argillaceous limestones at moderate
temperatures. The level of clay components in the limestone (around 3035%) is such that large amounts of belite (the low-early strength, highlate strength mineral in Portland cement) are formed without the
formation of excessive amounts of free lime. As with any natural
material, such cements have highly variable properties.
Geopolymer cements are made from mixtures of water-soluble alkali
metal silicates and aluminosilicate mineral powders such as fly ash and
metakaolin.

Company Profile

Bevcon group of Industries is a leading infrastructure development

company that operates out of Hyderabad, the Capital of South Indian
State of Andhra Pradesh. This particular unit has Established in 1999,
MCs registered an exponential growth within the first five years under
the sterling leadership of the companys chairman C.M. Ramesh.

MCs expertise is outstanding in following project areas: masonry /

Concrete dams spill ways, tunneling, formation of earth dams and
bunds, canals, bridges, roads and buildings. befittingly, the company has
the privilege of working for or on behalf of such infrastructure majors as
the Tehri Hydro power development corporation, steel Authority of India
Limited, NTPC, NHPC, Reliance, and Engineering projects India
Limited.
MCs expertise, Virtually in all areas of civil and engineering
construction, is best reflected in the successful execution of following
projects.
Rs.350 Cores Koteshwar Dam for the Tehri Hydro Electric power
project in Uttaranchal,
Rs.250 - Crores project for transportation of iron ore form Kalta iron
ore mines to SAIL in orissa state engaging an unprecedented
workforce of 4000 people.

 Rs.150-crores project for construction of B.G. single line Tunnel No.5

(Bakkal Tunnel ) form Km 43.040 to 48.940 on the Katra-Laole
section of the Udahampur Srinagar Baramulla Rail Link.

Environments, Mr., Ramesh plans to bank from when the change of

Rs.8-crores Owk Reservoir Complex in Andhra Pradesh, and
COMPANY Rs22-cores project for construction of barrage across
ponnai River near
Kalavagunta, Chittoor district in Andhra Pradesh.

BOARD OF DIRECTORS:
Mr. C.M. Ramesh, Chairman and Managing Director of Bevcon Projects
Limited, comes form a value-based business family in Kadapa district of
Andhra Pradesh. His entrepreneurial success within a short span of five
years is exponential.
As his first major business diversification effort, Mr. Ramesh established
Bevcon Wayors Limited in 1999 in Hyderabad, the state capital of Andhra
Pradesh. Within the next couple of years, he shaped the company into an
outstanding infrastructure development leader with specific thrust on
mega construction and mining projects. Mr. Ramesh also has the
distinction of conceiving and development a profitable 6 MW Bio-Massbased electricity project in Khammam district of Andhra Pradesh. This

project is recognized as the most significant in its class for industry best
practices.
A commerce graduate with a sharp insight into national infrastructure
requirement, Mr. Ramesh has a decade and half experience in developing
mega projects. In addition to managing his own enterprises successfully
Mr. Ramesh takes time out to provide professional consultancy to several
infrastructure leaders such as the Hyderabad-based Progressive
Constructions Limited, Indeed sensitive to changes in business
environment, Mr. Ramesh plans to be in front when the change happens.

Operating efficiently out of a network of corporate and project offices

across the country, Mr. Ramesh presents the picture of a cutting edge
entrepreneur endowed with exemplary vision, leadership, resource
mobilization, and management skills.
Current diversification plans of Mr. Ramesh include tapping the excellent
hydropower generation opportunities that the highly progressive State of
Sikkim is unfolding.
Mr. C.M. Rajesh Director
Mr. C.M. Rajesh, Director of Bevcon Wayors Castings Limited A graduate
in the Arts from Andhra Loyola College, Vijayawada, Andhra Pradesh is
yhe current successful Director of the profit-making Bevcon Power
Projects Limited in Khammam district of Andhra Pradesh. He brings a

sharp sense of focus, dynamism, dedication and competitive spirit to the

company to shape into a successful, professionally managed enterprise.
A hands-on leader, Mr. Rajeshs experience is significant in successful
management of the 6 MW Bio-Mass-based electricity project in
Khammam. This project is recognized as the most significant in its class
for implementation of the power industrys best practices.

a) FOCUS AND BUSINESS

Power generation, irrigation and highways will dominate the development
agendas of the Indian Government at the center as Well as in States and
Union Territories. Consequently, the Bevcon Groups business strategy too
will revolve around these areas. In the crucial power sector, Bevcons
associated company Bevcon power projects Limited has developed a
successful 6 MB bio-mass based electricity project in Khammam district
of Andhra Pradesh also. Bevcon Groups combined capabilities in civil
engineering; power generation and highway building provide an excellent
platform for power project development, particularly in sikkim given the
state Governments progressive energy policy.

The central and provincial management realize that hydroelectric power

projects established in the Southern and western parts of India are
increasingly becoming unviable primarily because of poor river flows.
Therefore, the Government of India has decided to encourage
hydroelectric power projects in the Himalayan region that is endowed

with perennial rivers, so necessary to make power projects meaningful to

all from the generator to the consumer

To make power projects meaningful to all from the generator to the

consumer. To acquire an edge in the highly competitive infrastructure
industry, Bevcon Wayors Castings Limited, entered into an MOU with
National projects constructions Corporation. The MOU entitles the
company to 10% price/purchase preference in all bids submitted by
NPCC on MCs behalf significantly done to be constructed by NTPC and
hydropower projects in Northeast India shall constitute BW,s thrust
areas for the next three years. Participation in these projects will call for
extraordinary expertise and resource mobilization. Bevcon Wayors
Castings has the confidence to generate both. Needless to stress, success
in such mega projects could steer Bevcon Wayors Castings to the
companys stated goal of industry leadership.

BEVCON INDUSTRIES LIMITED

DETAILS OF WORKS ON HAND AS ON 30.11.2011

Value of

Value of

RS. In Crores
Value of
Name of the work
work

work

work to be

awarded

executed

executed

250.00

46.76

203.24

335.00

99.34

235.66

152.29

34.34

117.95

77.04

48.55

228

58.32

13.31

45.01

SI.

Transportation of iron ore

1

from KALTA IRON MINES

to SAIL in Orissa State
Construction of civil works of

DAM spillway and power

house at near rishikesh,
uttranchal sate
Construction of B.G. single
line tunnel No.5 (Bakkal
tunnel) from Km43.040 to

48.940 on the katra-laole

section of the udahampur
srinagar baramulla Rail
Link project
Investigation preparation of
hydraulic particulars, design

and drawings excavation of

HNSS Main Canal from
Km15.00 km
Investigation, preparation of
hydraulic particulars, design
and drawings and excavation
of HNSS Main canal from Km

176.000 to Km 192.000
including construction of
CM&CD works and
distributory system to feed an
ayacut of 20,900 acres khariff
I.D.

Awards & Achievements:

BHARTIYA SHIROMANI
PURASKAR
This certificate of Excellence for
Enhancing the image of India presented by

Section I.2 Dr.Bhishma Narain Singh

(Honble Former Governor of Tamil Nadu & Assam)
to
Section I.3 BEVCON INDUSTRIES LIMITED

Awarded by the Institute of Economic Studies (IES),

(a) New Delhi at the time of the Seminar on
Economic Development
held on 13th February 2006 at New Delhi.

IES
President

Executive Director

PARTNERS
Progressive Constructions Limited
Ga India Limited
Mytas
NPCC
CLIENTS
Konkan Railway Corporation Limited
Tehri Hydro Development Corporation
Steel Authority of India Limited
NTPC
NHPC
Reliance

MILESTONES

Engaging 4000 workers, executing the largest manual

labor contract in India at Kalta Iron Ore mines in
Orissa
Construction of the district in AP much ahead of the
scheduled time. The comprises at paleru, Gollaleru and
Thimmaraju earth dams.
Executing all subcontracts efficiently to become
principal contractor with the potential of bidding for
awards worth Rs.200 Crores independently.
Large plant and machinery base to undertake any
super Infrastructure project.
Reservoir of trained, motivated and dedicated
manpower to undertake projects of any complexity or
magnitude.

DATA ANALYSIS & PRESENTATION

COMPONENTIAL ANALYSIS:
The componential analysis of the fixed assets of Bevacon cables includes net
blocks, capital (work in progress) and construction stores and advances.
The data relating to different components of fixed assets of the Bevacon
cables for 4 years commencing from 2008-09 to 2010-11 are set out in the
following table analysis:
YEAR

NETBLOCK

CAPITAL

TOTAL

(FIXEDASSET

(W\P)

2009-10

S)
71660961

80000000

871660961

2011-12

(8.22)
12009210847

(91.78)
80000000

(100)
184210847

2012-13

(56.57)
147724251

(43.43)
80000000

(100)
227724251

2013-14

(64.87)
1849201082011

(35.13)
80000000

(100)
264920108201

(69.80)

(30.20)

1
(100)

INTERPRETATION:
By observing the above table it reveals that the investment in the net block is
in increasing trend .It was 8.22 over the total fixed assets during the year
2007 and it has increased to 69.80 during the year 2010

TREND ANALYSIS:

In financial analysis the direction of change over a period of years is of initial

importance. Time series and trend analysis of ratio indicates the direction of
changes. This kind of analysis is particularly applicable to the profit and loss
account. It is advisable that trends of sales and net income may be studied in
the light of two factors. The general price level that might be found in
practice is that a number of firms would be shown at persistent growth over
period of years but to get a true trend of growth, the sales figure should be
adjusted by a suitable index of general prices.

In other words, sales figures should be deflated for raising price level.
Another method of securing trend of growth and the one which can be used
instead of adjusted sales figure or as to check on them is to tabulate and lot
the output of physical volume of the sales expressed in suitable units of
measure. The general price level is not considered while analyzing trend in
growth as it can mislead management. They may become unduly optimistic in
period of prosperity and pessimistic in dual periods.

For trend analysis the use of index numbers is generally advocated, the
procedure followed is to assign the numbers to items of base years and at
calculated percentage change in each item of other years in relation to base
year. This procedure may be called as Fixed percentage method.
This margin determines the direction of upward or downward and involves
the implementation of the percentage relationship of each statement item
means on the same in the base year. Generally the first year is taken as the
base year. The figures of the base year are taken as 100 and trend ratio for
the other years is calculated on the basis of first year. Here an attempt is
made to know the growth rate in total investment and fixed assets of the
BEVACON for 4 years that is 2012-13 to 2013-14.

GROWTH IN TOTAL INVESTMENT

YEAR

INVESTMENT

TREND

2010-2011

25000000

PERCENTAGE
100

2011-2012

25000000

100

2012-2013

25000000

100

2013-2014

25000000

100

30000000
25000000
20000000
Rupees

15000000
inveents
10000000

trend %

5000000
0
2010-11
2011-12
2012-13
2013-14
Years

INTERPRATATION:
From the analysis of above table it can be observed that Total
Investment of RAD CAB had no change. It is constant from 2010-2011 to
2013-2014

GROWTH RATE IN FIXED ASSETS:

YEAR

FIXEDASSETS

TREND
PERCENTAGE

2010-2011

144550743

100

2011-2012

15912008692

110.2011

2012-2013

19797882008

124.43

2013-2014

26220109534

132.36

300000000
262059534
250000000
200000000

197978803

159103692
144550743
150000000
Rupees
fixed assets

trend %

100000000
50000000
100110.06
124.43
132.36
0
2010-11
2011-12
2012-13
2013-2014
Years

INTERPRETATION:
The above table shows that the investments in fixed assets are increasing. So
this is a good sign for the company. When compared to 2007-2011 it is been
continuously increased in the ratio 100 percent to 132.36%

RATIO ANALYSIS:
Ratio analysis is a powerful tool of financial analysis. A ratio is defined as the
indicated Quotient of two mathematical expressions and Ratios look at the
relationship between individual values and relate them to how a company has
performed in the past, and might perform in the future.
The absolute accounting figure reported in financial statement does not
provide a meaningful understanding of the performance and financial
position of the firm. Ratios help us to summarize large quantities of financial
data and to make qualitative judgment about firms financial performance.

1.

FIXED ASSETS TO NET WORTH RATIO :

This ratio establishes the relationship between fixed assets and net worth .
Net worth = share capital + reserves and surplus + retained earnings
Fixed assets to net worth ratio = Fixed assets
Net worth
The ratio of Fixed assets to Net worth indicates the extent to which share
holders funds are sunk into the fixed assets. Generally, share holders should
finance for

Purchasing fixed assets and equity including the reserves and surpluses and
retained earnings. If the ratio is less than 100% it implies that owners funds
are more than total fixed assets and the share holder provide a part of
working capital.
When the ratio is more than 100% it implies that owners funds are not
sufficient to finance the fixed assets and financier has to depend upon
outsiders to finance the fixed assets. There is no Rule of Thumb to interpret
but 60%-65% is considered to be satisfactory ratio in case of industrial
undertaking.

2. FIXED ASSET RATIO:

This ratio explains whether the firm has raised adequate long term fund to
meet its fixed assets required and is calculated as under:
=

Fixed assets (after depreciation)

Capital employed

This ratio gives an idea as to what part of the capital employed has been used
in purchasing the fixed assets for the concern. If the ratio is less than 1 it is
good for the concern.

FIXED ASSETS AS A PERCENTAGE TO CURRENT LIABILITIES:

The ratio measures the relationship between fixed assets and the funded
debts and is very useful to the long term erection. The ratio can be calculated
as shown below
Fixed assets as a percent of current liabilities=

Fixed Assets

Current liabilities

3. TOTAL ASSETS TURN OVER RATIO:

The ratio is calculated by dividing the net sales by the value of total assets
that is (net sales/total investment) or (sales/total investment).A high ratio is an
indicator of over trading of total assets while a low ratio reveals idle capacity.
The traditional standard for the ratio is two times.
=

Net sales
Total Assets

4. FIXED ASSETS TURNOVER RATIO:

The ratio expresses the no. of times fixed assets are being turned over in a
stated period. It is calculated under.
=

_____________sales_____________
Net fixed assets (after depreciation)

This ratio shows how well the fixed assets are being used in business. The
ratio is important in case of manufacturing concern because sales are
produced not only by use of current assets but also by amount invested in
fixed assets the higher ratio, the better is the performance. On the other
hand, a low ratio indicates that fixed assets are not being effectively utilized.

5. RETURN ON TOTAL ASSETS:

=

Profit after tax

Total assets

This ratio is calculated to measure the profit after tax against invested in total
assets to ascertain whether assets are being utilized properly or not. The
higher the ratio the better it is for the concern.

FIXED ASSETS TO NET WORTH RATIO

The ratio indicates the extent to where the shareholders funds are struck in
the fixed assets. The formula to compute fixed assets to net worth is
calculated as follows:
Fixed assets (after depreciation)
Net worth
NET WORTH =share capital + reserves and surplus + retained earnings-net
loss.
If the ratio is less than 100% it implies that owners funds are more than the
fixed assets and the shareholders and vice versa provide a part of working
capital.
Fixed assets to net worth ratio = Net fixed assets
Net worth
YEAR

NET FIXED

NET WORTH

RATIO IN %

ASSETS
2010-2011

144550743

132120985

1.09

2011-2012

15912008692

146595701

1.08

2012-2013

19797882008

154079375

1.28

2013-2014

26220109534

189581076

1.38

FIXED ASSETS TO NET WORTH RATIO

300000000
250000000
200000000
Rupees

150000000

Fixed assets

Networth

100000000
50000000
0
2010-11
2011-12
2012-13
2013-14
Years
INTERPRETATION:
The above table shows a continuous increase in net worth and fixed assets.
This shows the satisfactory position of the company.

FIXED ASSET RATIO:

Capital employed=shareholders fund + Long-Term borrowings
Fixed assets (after depreciation)
Capital Employed
YEAR

NET FIXED

CAPITAL

RATIO IN

ASSETS

EMPLOYED

2010-2011

144550743

18020089825

1.09

2011-2012

15912008692

20220102947

1.08

2012-2013

19797882008

19932200965

1.28

2013-2014

26220109534

214702547

1.38

Fixed Assets Ratio

300000000
250000000
200000000
Fixed asstes

150000000

Capital emplooyed

100000000
50000000
0

2010-112011-132012-132013-14

INTERPRETATION
The above table shows growth in fixed assets satisfactory position of fixed
assets in the company. Long term funds show less fluctuation, there is no
change
The highest percent 138 recorded in the year 2013-2014. That shows the
position of the company is satisfactory.

FIXED ASSETS AS A PERCENTAGE TO CURRENT LIABILITIES:

Fixed assets as a percentage to current Liabilities
= __fixed assets__
Current Liabilities

YEAR

NET FIXED

CURRENT

RATIO IN %

ASSETS

LIABILITIES

2010-2011

144550743

18864487

7.66

2011-2012

15912008692

39331491

4.2009

2012-2013

19797882008

57956936

3.42

2013-2014

26220109534

72011141

3.64

Fixed assets to current liabilities

300000000
250000000
200000000

Fixed assets

150000000

Current Liabilities

100000000
50000000
0

2010-112011-122012-132013-14
INTERPRETATION

The above table shows the relationship between fixed and current Liabilities.
The above table shows growth in fixed assets.
This shows the satisfactory position of fixed assets in the company. Even the
current liabilities are increasing. The highest percentage recorded was in the
year 2010-2011 i.e., 7.66 and the lowest was in the year 2013-2014 i.e., 3.42

TOTAL INVESTMENT TURN OVER RATIO:

The total investment turn over ratio can be calculated by the formula as
given under
Total investment ratio =

sales

Total investment

YEAR

SALES

INVESTMEN

RATIO IN %

T
2010-2011

24026720092

25000000

9.61

2011-2012

261978250

25000000

10.48

2012-2013

313988837

25000000

12.56

2013-2014

44356200834

25000000

17.74

TOTAL INVESTMENT TURN OVER RATIO

450000000
400000000
350000000
300000000
250000000
Sales

Investment

200000000
150000000
100000000
50000000
0

2010-122011-122012-132013-14

INTERPRETATION
From the above table we can see that sales had an increase
Investment is constant from 2010-2011 that signifies the company position is
satisfactory.

FIXED ASSETS TURN OVER RATIO:

The fixed assets turn over ratio is a relation between the sales or
cost of goods and fixed/capital assets employed in a business.

Fixed assets turn over ratio =

sales

Total fixed asset

YEAR

SALES

NET FIXED

RATIO IN %

ASSETS

2010-2011

24026720092

144550743

1.66

2011-2012

261978250

15912008692

1.65

2012-2013

313988837

19797882008

1.59

2013-2014

44356200834

26220109534

1.69

FIXED ASSETS TURN OVER RATIO

450000000
400000000
350000000
300000000
250000000
Sales

Net fixed assets

200000000
150000000
100000000
50000000
0

2010-12 2011-12 2012-13 2013-14

INTERPRETATION

The above table shows increases in Net fixed assets. That can also be seen
clearly in sales, that indicates a good sign.

RETURN ON TOTAL ASSETS:

The return on fixed assets can calculate as under:

Return on fixed assets = profit after tax

Total Assets

YEAR

PROFIT

TOTAL

RATIO IN %

AFTER TAX

ASSETS

2010-2011

1394158

31628972008

0.02009

2011-2012

2019163

343716186

0.02011

2012-2013

22996458

390962187

0.2011

2013-2014

38663781

464312835

0.083

RETURN ON TOTAL ASSETS

500000000
450000000
400000000
350000000
300000000

Profit After Tax

Total Assets

250000000
200000000
150000000
100000000
50000000
0
2007-08 2008-09 2009-10 2010-11

INTERPRETATION
The above table shows increase in profit 2010-2011 profit has gone up. This
shows the favorable position of the company.

VALUATION OF FIXED ASSETS:

Bevacon cables Pvt .Ltd. Follows
1)
2)

Historical cost method in the valuation of fixed assets.

The fixed assets do not include assets acquired on sale-cum-lease basis

from various Financial Institutions whereon the lease rent paid for the
year is charged to revenue.

3)

Plant and Machinery includes the value of Air Conditioning Plants at

various units which were transferred and vested with the Corporation

under the transfer scheme. The gross value and depreciation thereon are
not segregated in the absence of break up details under the transfer
scheme. The value thereof, however, is insignificant.
4)

Investments are intended for long term and are carried at cost. Income
on investment is accounted on accrual basis.

5)

Capital expenditure on assets not owned by the company is reflected as a

distinct items in capital WIP till the period of completion and therefore in
the Fixed assets.
6)

The Company evaluates the impairment of losses on the fixed assets

whenever events or changes in circumstances indicate that their carrying

amounts may not be recoverable. If such assets are considered to be
impaired the impairment loss is then recognized for the amount by which
the carrying amount of the assets exceeds its recoverable amount, which is
the higher of an asset's net selling price and value in use. For the purpose
of assessing impairment, assets are grouped at the smallest level for which,
there are separately identifiable cash flows.

7)

Fixed assets is adjusted in their carrying cost in respect of foreign

currency transactions entered before 1-4-2010 and that related to current

assets is recognized as revenue/expenditure during the year.
8)

In case of commissioned assets, where final settlement of bills with

contractors is yet to be effected, capitalization is done on provisional basis

subject to necessary adjustment in the year of final settlement.

CALCULATION OF DEPRECIATION:

Depreciation methods followed by Bevacon cables Pvt .Ltd. is as follows:

1)

Depreciation is charged on straight-line method as per rates notified by

the Government of India except where actual cost does not exceed Rs.
5000 in which case it is charged 100% in the same year. In respect of
assets, where rate is not laid down, depreciation is provided on straightline method under the schedule XIV of the Companies Act 1956.

2)

Depreciation is provided on pro-rata basis in the year in which the asset

becomes available for use.

3)

Where the cost of depreciable assets has undergone a change during the
year due to increase/decrease in long term liabilities on account of
exchange fluctuation, price adjustment, change in duties or similar
factors, the unamortized balance of such asset is depreciated prospectively
over residual life determined on the basis of the rate of depreciation.

4)

Internal electrical wiring, fittings etc., are treated as part of buildings

and as such depreciation applicable to buildings is charged thereon.

SUMMARY & CONCLUSIONS

FINDINGS

 Regarding to the fixed assets to net worth ratio shows a continuous

increase in net worth and fixed assets. This shows the satisfactory
position of the company.
Regarding the long-term funds to fixed assets they show an increase.
Regarding the total investment turn over ratio it is observed sales had
an increase from 2010-2014.
Regarding the Fixed Asset turn over ratio, sales had an increased.
Regarding the Return on total assets ratio it has been observed that
There is profit. This shows the favorable position of the company.
From the above study it can be said that the Bevacon overall financial
position on fixed assets is satisfactory.

SUGGESTION

 It is suggested to improve the position of the company by

effectives utilization of fixed assets.
Growth rate in fixed assets can be increase by employing more
investment.
Total investment to sales can be improved.

Instead of disclosing the combined flows of debtors and loans

advances as decrease/(increase) in trade and other receivables,
their separate disclosure will be more meaningful.

Globalization of economies and the requirement of shares from

investors in capital market, diverse and demanding audience to the
company, need a clear and in-depth in information about the
companys financial position in Annual report.

CONCLUSIONS:
After analyzing the financial position of Bevacon cables and evaluating its
fixed assets management or capital budgeting techniques in respect of
component analysis, trend analysis and ratio analysis. The following
conclusions are drawn from the project preparation.
The progress of shows that there is an increase in Net block considerably over
the year that the investment in the net block is in increase trend .It increased
during the year 2010-2014 and it has 69.80%.

BIBLIOGRAPHY

1. Khan, M Y and P K Jain, Financial Management, Tata McGraw-

Hill

Publishing Co., New Delhi, 2007.

2. I M Pandey, Essentials of Financial Management, Vikas Publishing

House Pvt Ltd, New Delhi, 1995.

3. Ramesh, S and A Gupta, Venture Capital and

the Indian

Financial Sector, Oxford university press, New Delhi, 1995.

4. Anthony, R N and J S Reece, Management Accounting Pincipls,

Taraporewala, Bombay.

5. Jain, P K , Josette peyrard and Surendra S Yadav, International

Financial Management, Macmillan India Ltd, New Delhi, 1998.
6. Prasanna

Chandra,

financial

Publishing Co., New Delhi, 2007.

Management,

Tata

McGraw-Hill

APPENDICES
ORGANISATION STRUCTURE

Bevacon
HIGH PERFORMANCE RELIABLE WIRES AND CABLES

ADVISOR

BOARD OF
DIRECTORS

CHAIRMAN
MANAGING
DIRECTOR
DIRECTORS

MANAGING DIRECTOR

GENERAL
MANAGER SALES

CORPORAT
E OFFICE
CORPORAT
E
PLANNING
INFORMATI
ON
SYSTEMS
CENTRE
OPERATION
S

MARKETING

SALES

GENERAL MANAGER COMMERCIAL

GENERAL MANAGER
(R&D)
FINANCE
ACCOUNTS
R&D
PURCHASE
QUALITY ASSUARANCE
STORES
QUALITY CONTROL DESPATCH
CABLE ASSEMBLY DIVISION
CALIBRATION
EQUIPMENT DEVELOPMENT
TRAINING