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— Main beneficiary of infrastructure boom.

— Ranked M
 in the world.

— Romprises of 125 large cement plants and more than 300 mini cement
plants.

— Applications in :-
Ronstruction (homes, offices)
Infrastructure creation (ports, roads, powerplants etc.)

— The major Indian companies are ARR td. , Grasim Industries td. , Ambuja
Rements td. , J.K Rements td. , Madras Rement td. etc.
— Thr     rM:- High capital cost act as
a major entry barrier.
— Thr     M
M  M:-No good substitutes
for cement.
— Úrgg p r  M ppl rM:- To mitigate the
high cost of power the cement players have set up
captive power plants.
— Úrgg p r  Ú  rM - Retail buyers
don¶t have any bargaining power while institutional
buyers get discount of 5-10%.
— Rp  rlr
  Mg pl rM:-
industry has become more consolidated.
— J.K Rement is an affiliate of the J.K organisations , which was
founded by ate ala Kamlapat Singhania.
— Started its commercial production in May 1975 at their first plant at
Nimbahera (Rajasthan).
— eading position in attractive Northern India grey cement market.
— Second largest white cement producer in India.
— Produces :- OPR(53-grade,43-grade & 33- grade)
PPR under JK super
White Rement under JK White and Ramel
Wall Putty under JK Wall Putty
— Plants at :- Nimbahera, Mangrol , Gotan , Mudhol.
— Promises Quality of products and has Technical Know-how.
— Has Networth :-118361.56 (Rs. acs)
DPS (Rs.):- 3.50
EPS (Rs.) :- 20.36
Payout Ratio(%) :-20.17
— Aimed to study the company recent project & studying the tools used
for evaluating a project.

— Rommon rationales for conducting an evaluation are :-

r Monitoring projects
r Getting an overall understanding of the project & making priorities
among a set of projects &deciding whether or not to proceed with a
project.
r Demonstration of effective ,efficient and equitable use of financial and
other resources
r Recognition of actual progress made.
r Identification of success factors.
— Project evaluation is important because unless the project is
managed effectively, monitored efficiently and reviewed
periodically at regular interval to remove bottlenecks.

— Other objectives:-

r What Progress has been made?

r Were the desired outcome achieved?

r Do the project Results justify the project inputs?

r To study The operating and cash cycle of the company

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r In order to strengthen its position in south India JK Rements td.
has opened a plant in Mudhol, Karnataka having capacity of 3.00
MTPA of grey cement.

r It is required to raise Rs.1000 cr. ,through fund and non-fund

sources.

r The project is proposed to be finance as under

sources.pptx
r The total cost of the project has been estimated as :-financial
evaluation.
r Projected financial performance is as:-performance
r Rompany has chosen u T PR
uT VALU (NPV) technique for project
evaluation.

r Project is both technically and financially viable and feasible.

r It has best current ratio of 1.26:1 - it has enough cash to meet oncoming demands.

r It has debt equity equal to 0.99:1 - it has balanced debt and equity.

r It has moderate inventory turnover.

r It has 4 operating cycle annually.

r Getting interest on fixed deposits on compound basis , due to which they are
getting loss.

r Earning Per share is quite low, but comparing it from previous year company is
doing well in this field.
r Need to increase operating cycle.

r Need to achieve standard quick ratio (1:1).

r Roncentrate more on their marketing strategies.

r Need to improve on their Earning per share.

r Rase of etter of credits:-amended after sometime so to bear less

charges on them.

r Rase of Fixed Deposits:-should make fixed deposits where they

should get the amount quarterly .
r Mudhol plant has raised the capacity of:-

‡ Grey cement from 4.5 MTPA to 7.5 MTPA.

‡ White cement plant will remain at 0.4 MTPA

å JK Rement is a quality product but only lacks in marketing efforts

in comparison to the major players in the Delhi market.

å Project financing is a good method for financing and evaluating a

project.

å It helps in mitigating the risk.

å Project is financially and technical feasible.

r imited Data

r imited Time Period

r imited area