PROJECT FINANCEPRESENTATION

ON

OJASWINI GUPTA (JIML-11-104)PANKHURI SARAN (JIML-11-110)POORVI CHIB (JIML-11-111)PRABHAT SINGH (JIML-11-113)PRABHJOT SINGH (JIML-11-114)

PRESENTED BY:

KAJARIA CERAMICS LTD. Incorporated in 1985. India’s largest ceramics floor and wall tiles

manufacturing company.Promoted by Mr. Ashok Kumar Kajaria. It offers approx. 500 designs

CERAMIC WALL AND

FLOOR TILES

POLISHED VITRIFIED

TILES

VITRIFIED PAVING TILES

WOODEN FLOORING

SANITARY AND

FITTINGS

PRODUCT PROFILE :-

INTERPRETATION OF PROFIT AND LOSS ACCOUNT

Revenue- increase in revenue in last three financial year.

impact of extended capacity. increase in domestic sale & exports.Operational Cost- also growing each year. increased operational scale hiked input cost rupee depriciation jump in power & fuel cost. increase labour for expended

operational scale.

Interest- interest liability increase over the year despite a decline in total debt position.loan taken for expansion in 2010-11 are

charged in P\L account of 2011-12.due to foreign exchange lossInterest rate hike during years.

Taxation- increase in tax due to increase in profit before tax.

INTERPRETATION OF BALANCE SHEET

Short term solvency of the company is lowCompany adopts aggressive current asset

policy.Fixed asset are able to cover long term debt

obligation.Net worth as comparison to capital employed

is increasing. Long tern bowering is decreasing as company

deployed business surplus.

INTERPRETATION OF FINANCIAL RATIOS

•Lower than the ideal ratio

•Short term solvency of the company is low

Current Ratio

•Used to test the short term liquidity

•Lower than the bench mark

Quick Ratio

•Favorable for the company

•Lower the ratio higher is the degree of protection to lenders

Debt Equity Ratio

•Good in all three years

•Able to cover its debt obligations

Fixed Assets Coverage Ratio

•Increasing ROS, Operational Efficiency is good

•Increasing ROE, Able to generate profit by investors money

•High ROI – Better for the company

Return on Sale, Return on

Equity, Return on Investment

•Low Raw Material, W.I.P. , Finished Goods Holding Period, Average Collection Period

•High Average Collection Period – Taking time to pay to the creditors.

Activity Ratios

INTERPRETATION OF CASH FLOWS

•Cash from Operation 784

•Utilized for proceeds from short and long term borrowings , finance dividends and purchasing assets

•Negative Cash from Investing and Financing Activities

•Net increase in cash and cash equivalent items

31st March 2012

•Cash flow from operations 1583.5

•Used to finance dividends and assets

•Negative Investing Activities and Positive Financing Activities

•Net Decrease in Cash and Cash Equivalent Items

31stMarch2011

•Cash from Operations 1077.2

•Utilized for paying dividends, proceed from borrowings and fixed assets purchases.

•Negative Investing and Financing Activities.

•Net Decrease in cash and cash equivalent items .

31st March 2010

MANAGERIAL ANALYSIS1. CREDIT RATING: ICRA rated A—

2. COMPETITION: Major competitors are-

1. Johnson2. Bell3. Somany Pilkingston’s Ltd.4. Sun Earth

World Ranking in Ceramic Tile Industry is 5TH.

3. AWARDS AND RECOGNITION: 1. “SUPER BRAND” 6th consecutive time2. READER’S DIGEST TRUSTED BRAND GOLD

AWARD for the year 2010, 2011 and 2012.3. “INDIAN GREEN BUILDING COUNCIL” -

eco friendly process used in manufacturing.

TECHNICAL ANALYSIS1. TECHNICAL COLLABORATIONS:

Ceramic Glaze (Wall and Floor)- TODAGRES, SPAIN TILES

2. TECHNICAL KNOW – HOW3. ENVIRONMENTAL CONCERN :

Certifications across all its plants:ISO 9001-2008- Quality Management SystemOHSAS 18001- Occupational Health & SafetySA-8000- For Commitment to SocietyISO 22000- Food Safety Management

SystemISO 50001- For Energy Management System

4. PLANT LAYOUT5. PRODUCTION CAPACITY:

PLANT CERAMIC TILES

VITRIFIED TILES

TOTAL

Sikandrabad (UP) 3.2 5 8.2

Gailpur (Rajasthan)

14.1 6 20.1

Morbi (Gujarat)* 4.6 3.1 7.7

Vijaywada (Andhra Pradesh)*

2.3 - 2.3

MARKET ANALYSISMARKET REPUTATION:One of the Leading players In organized segment

of tiles industry in IndiaHigh volume exporter of vitrified tiles and glazed

tiles

RETAIL SEGMENT DEMAND:KAJARIA-70% and Industry Bench Mark- 50%

Mushrooming Middle Class Rising population Demographics Retail Consumption Replacement of Market Disposable Income

INSTITUTIONAL SEGMENT DEMAND:

Organized sector playing a dominant role in realty creation

Leveraging long-standing business relations with branded players. Airport modernization Commercial real space Organized retail Hospitality sector Healthcare sector Urbanization

COMPETENCE: Widest and fast growing Product Basket. Intensive Distribution Network15% market share of organized tile industry.

STRENGTHS & WEAKNESSESSTRENGTHS

Growth of 12-15 percent in spite of slowdown in economy

Kajaria is India’s largest ceramic floor and wall tile manufacturer.

R&D team creates around 8-10 designs every monthKajaria’s multi-layered distribution channel

WEAKNESSESo Low per capita consumption (0.15 sq.mt. p.a.) as

compared to developed nationso Stiff competition within the organized sector o The tiles industry in India was facing very

competitive conditions

LEND MONEY OR NOT IN THE COMPANY

We recommend a buy in the stock of Kajaria Ceramics from a short-term perspective.

Kajaria Ceramics Forms Jv With Vennar Ceramics at Vijaywada, A.P. – By investing a capital worth Rs 13.65 crore towards fresh equity shares, acquired 51% stake .