COMPANY PROFILE

Jaypee Group
The Jaypee Group is a well diversified infrastructural industrial
conglomerate in India. Over the decades it has maintained its
salience with leadership in its chosen line of businesses -
Engineering and Construction, Cement, Private Hydropower,
Hospitality, Real Estate Development, Expressways and
Highways. The group has been discharging its responsibilities to
the satisfaction of all its shareholders and fellow Indians, summed
by its guiding philosophy of "Growth with a Human Face"
Vision
!s a group, we are committed to strategic business development in infrastructure, as the "ey
to nation building in the #$st century. %e aim to achieve perfection in everything we
underta"e with a commitment to e&cel. It is the determination to transform every challenge
into opportunity' to sei(e every opportunity to ensure growth and to grow with a human
face.)
Mission
Our solitary *ission is to achieve +&cellence in every sector that we operate in - be it
+ngineering , -onstruction, -ement, .eal +state or -onsultancy. To augment our core
competencies and adopt the most comprehensive modern technology to overta"e the
obstacles in our path of achievement. To obtain sustainable development and simultaneously
enhancing the shareholders value and fulfilling our obligations towards building a better
India".
History
Transforming challenges into opportunities has been the hallmar" of the Jaypee Group, ever
since its inception four decades ago. The founder of Jaypee Group is Jaipra"ash Gaur, who
started as a civil contractor in $/01. In $/2/, Jaipra"ash !ssociates 3rivate 4td was formed.
Jaipra"ash !ssociates 4imited 5J!46 is engaged in the business of heavy civil engineering
construction, e&pressways, cement and real estate and hospitality. In $/17, Jaypee Group
entered into 8ospitality sector and set up 8otels 9iddharth and :asant -ontinental. In $/1;,
J.- 3lant was established with an initial capacity of $ million tones. In $/1<, Jaipra"ash
Industries 4imited 5JI46 was formed by amalgamating J!34 into J.-4. In $//#, Jaipra"ash
8ydro 3ower 4td and Jaipra"ash 3ower :enture 4td.6 were formed. In $//<, Jaypee =ela
-ement 3lant was established with an initial capacity of $./ million tones. In #777, J.-4 and
J=-3 were merged to form Jaypee -ement 4td.. In #77;, Jaipra"ash !ssociates 4td. 5J!46
was formed by merging JI4 with J-4. In #770, shares of J834 were listed on =9+>?9+ and
J834 became the first 8ydropower -ompany to be publicly held and listed in India.
1
Subsiiary!
Hote" an re"ate #usiness
Jaypee 8otels 4imited
Po$er an Re"ate #usiness
Jaipra"ash 8ydro-3ower 4imited
Jaipra"ash 3ower :entures 4imited
Jaypee @archam 8ydro -orporation 4imited
Jaypee 3owergrid 4imited
Jaypee !runachal 3ower 4imited.
Ce%ent #usiness
Jaypee -ement 4imited
GuAarat !nAan -ement 4imited
=hilai Jaypee -ement 4imited
=o"aro Jaypee -ement 4imited
GuAarat Jaypee -ement and infrastructure 4imited
Coa" Minin&
*adhya 3radesh Jaypee *inerals 4imited
E'press$ay an Re"ate #usiness
Jaypee Infratech 4imited
Jaypee Ganga Infrastructure -orporation 4imited
8imalayan +&pressway 4imited
Sports an Re"ate #usiness
J39@ 9ports 3rivate 4imited
#oar o( )ire*tors
Jaipra"ash Gaur, Bounder -hairman
*anoA Gaur, +&ecutive -hairman and -+O
9unil @umar 9harma, +&ecutive :ice -hairman
9arat @umar Jain, :ice -hairman
!.@. 9ahoo, 54I- ?ominee6
Cr. =. 9amal 5IC=I ?ominee6
*.J. 9ubbaiah, 5I-I-I ?ominee6
Gopi @. !rora
..?. =hardwaA
9.-. =hargava
Cr. +. .. -. 9he"ar
=.@. Taparia
9.-. Gupta
*.9. 9rivastava
9unny Gaur, *anaging Cirector 5-ement6
3an"aA Gaur, Joint *anaging Cirector 5-onstruction6
..@. 9ingh, %hole-time Cirector
.anviAay 9ingh, %hole-time Cirector
9.C. ?ailwal, %hole-time Cirector , -BO
+
#usiness Interests o( Jaypee Group
En&ineerin& , Constru*tion
The +ngineering and -onstruction wing of the group is an ac"nowledged leader in the
construction of multi-purpose river valley and hydropower proAects. It has had the uniDue
distinction of e&ecuting simultaneously $; hydropower proAects spread over < states and the
neighboring country =hutan for generating $7,#/7 *% of power.
The group has been assigned -.$) grade by I-.! 4td indicating very 9trong -ontract
+&ecution -apacity with best prospects of timely completion of proAects without cost
overruns etc. for proAects with average value of .s.#077 crores.) It is the only group in India,
which pre-Dualifies on its own for the bidding of various proAects that are awarded in the
country.
! leader in engineering , construction of hydropower proAects in India, the -ompany has the
largest mar"et share in the Indian hydropower, +,- and +3- sector having participated in
0EF of hydropower proAects developed in $7th 0-Gear 3lan in different capacities.
The company also has the distinction of e&ecuting three out of five hydropower proAects
contracted on an +3- basis in the country till *arch #772. Two of these, ;77 *% -hamera -
II and 0#7 *% Om"areshwar, have been completed ahead of schedule.
The /77 *% =aglihar 59tage-I and II6 hydroelectric proAect in Jammu , @ashmir, in the
challenging environment of the 9tate with ## million cubic meters of concrete, has been the
largest +3- proAect e&ecuted in the country in hydropower sector, so far.
The "ey non-+3- proAects completed>under e&ecutions across India are -
$E07 *% 9ardar 9arovar 3roAect, the largest water resource proAect in India,
$777 *% Tehri Cam, !siaHs highest roc"fill dam.,
$777 *% Indira 9agar 3ower 8ouse, second largest surface power house in the
country.
$077 *% ?athpa Jha"ri 3ower 8ouse, the largest underground surface power house
in the country.
The in house Cesign and -onsultancy company, Jaypee :entures 3vt. 4td. 5J:346, gives J!4
a competitive edge over its rivals. The design and engineering arm has been awarded -T$)
grade by I-.! with -IC- 5The -onstruction Industry Cevelopment -ouncil6. This is the
highest rating assigned to consultants in the field of engineering.
Ce%ent
Jaypee group is the ;rd largest cement producer in the country. The group produces special
blend of 3ortland 3o((olana -ement under the brand name IJaypee -ementJ 533-6. Its
-ement Civision currently operates modern, computeri(ed process control cement plants
-
with an aggregate capacity of $;.0 *T3!. The company is in the midst of capacity
e&pansion of its cement business in ?orthern, 9outhern, -entral, +astern and %estern parts
of the country and is slated to be a #E.;7 *T3! cement producer by the year #7$7 and #<.17
*T3! by #7$$ with -aptive Thermal 3ower 3lants totaling ;#2*%.
Po$er
Jaypee Group, an integrated power player in the country after having established a strong
presence in the 8ydro-3ower 9ector has initiated its entry into Thermal 3ower Generation,
3ower Transmission and also forayed into %ind 3ower.
The group with its operational proAects of ;77 *% =aspa-II 58imachal 3radesh6 and E77
*% :ishnuprayag 5Kttara"hand6 is IndiaJs largest 3rivate sector 8ydro-power producer.
=esides this, $777 *% @archam %angtoo proAect 58imachal 3radesh6 is under advanced
stage of implementation. In addition to these, with ;#77 *% proAects 5#277 *% 4ower
9iang , 077 *% 8irong 6 coming up in !runachal 3radesh and 2#7 *% 5#27 *% Kmngot
and E07 *% @ynshi 9tage LII6 in *eghalaya, the Group will have total hydro-power
generation capacity of over 0<77 *%.
The Group is in the process of implementing # & <<7 *% pit head based ?igrie Thermal
3ower 3lant in Cistrict 9ingrauli of *.3. and 0& #07 *% Thermal 3ower plant at =ina *.3.
J!4 has been awarded 4OIs for $/17 *% 5; & <<7 *%6 @archana Thermal 3ower 3roAect
and ;;77 *% 50 & <<7 *%6 =ara Thermal 3ower proAect in K3. =esides this, is also setting
up through *>s 9u(lon, 07 *% of %ind 3ower plant in district Chule, *aharashtra.
The Group is setting up Transmission 9ystem associated with $777 *% @archam %angtoo
8ydro +lectric 3roAect. The Transmission 3roAect will consist of a #;7 "m long transmission
line between %angtoo in 8imachal 3radesh and !bdullapur in 8aryana.
Hospita"ity
The Group owns and operates E Bive 9tar 8otels, two in ?ew Celhi and one each in !gra
and *ussoorie with a total capacity of <E; rooms. !nother state-of-the-art resort and 93! is
being set up in collaboration with 9IM 9+?9+9 at Greater ?oida.
Rea" Estate an E'press$ays
The Group is a pioneer in the development of IndiaJs first golf centric .eal +state. Jaypee
Greens - a world class fully integrated comple& consists of an $1 hole Greg ?orman Golf
-ourse. 9tretching over E07 acres, it also includes residences, commercial spaces, corporate
par", entertainment and nature in abundance.
The Group is constructing $<0 "m long < lane Gamuna +&pressway proAect from ?oida to
!gra and ribbon development on <#07 acres at five or more locations along the e&pressway
for commercial, industrial, institutional, residential and amusement purposes, will also be
underta"en as an integral part of the proAect. In addition to this, $7E2 "m long 1 lane Ganga
+&pressway from Greater ?oida to =allia 5+astern Kttar 3radesh6 will also be developed by
the Group which will be the largest private sector infrastructure proAect in India.
.
So*ia" Co%%it%ents
The group has always believed in growth with a human face and to fulfill its obligations it
has set up Jaiprakash Sewa Sansthan 5J996, a Inot!or pro!it trustJ which primarily serves
the obAectives of socio L economic development, reducing the pain and distress in society and
providing education at all levels of the learning curve with si&teen schools, three Technical
Training Institutes, two colleges and three universities.
Bor over ; decades now Jaypee Group has supported the socio-economic development of the
local environment in which they operate and ensure that the economically and educationally
challenged strata of the wor" surroundings are also benefited from the groupJs growth by
providing education, medical and other facilities for local development.
!part from this sustaining the ecological balance is of paramount importance. Our ecological
management approach has led to efficient and optimum utili(ation of available resources,
minimi(ation of waste. Our group has also ta"en green initiatives, resources conservation,
water conservation, air Duality control , noise pollution control and created a green oasisJJ
amidst the limestone belt at our cement comple& in .ewa.
/It is our dream of a brighter India that gives us the courage to brave the odds and emerge
successful. Its no small dream. But then, its not too big either0
Listin& o( Se*urities
The shares of the company are listed on the Indian 9toc" +&change in accordance with the
provisions of the 9ecurities -ontracts 5.egulation6 !ct, $/0<, 9ecurities -ontracts
5.egulation6 .ules, $/02, -ompanies !ct, $/0<, Guidelines issued by 9+=I and .ules, =ye-
laws and .egulations of the +&change.
Na%e o( E'*1an&e Coe
?ational 9toc" +&change 5?9+6 J3!99O-I!T
=ombay 9toc" +&change 5=9+6 0;#0;#
Mar2et Pri*e ata an per(or%an*e in *o%parison to ine'
5Bace :alue of each shareN .s #6
Mont1 S1are pri*es at #SE S1are pri*es at NSE
Hi&1 Lo$ Hi&1 Lo$
Apr345 $#<.17 $7$.77 $#<.E1 $7$.72
May345 $E7.17 $$;.77 $E$.77 $$E.77
Jun345 $07.$7 $#2.2< $07.#7 $#2./7
Ju"345 $21.07 $E1.77 $21.<7 $E2.17
Au&345 $1<.E/ $0$.<7 $1/.<7 $0$.#7
Sep345 #;#.77 $2<.#7 #;#.E7 $22.<$
O*t345 ;7<.E7 #7#.77 ;7<.21 #7#.77
No6345 ;2<.E7 #<1.77 ;2E.<1 #27.77
)e*345 EE/./7 ;<0.77 EE7.07 ;<E.77
7
Jan348 0$7.77 #2E.77 07/.17 #2;.E7
Feb348 E##.17 #E7.77 ;/2.;0 #E7.77
Mar348 #</.77 $1/.77 #</.77 $1/.77
JAL S1are Per(or%an*e Vs #SE Sense'
9
S:O; ANALYSIS
Stren&t1
IndiaJs leading +ngineering and -onstruction -ompany with strong focus on
development of river valley and hydro electric proAects.
IndiaJs largest private sector =uild, own , Operate 8ydropower 3lant.
;
rd
largest producer of cement in India.
!ll -ement plants have factored with latest technology and have captive thermal
power plants.
9trong hold in Infrastructure sector after launching proAects li"e !man,and @lassic.
3roAect under development li"e Ganga e&pressway- ?oida to =alia5K.3.6 and
development of <#07 acres of land around T!J e&pressway.
?ew Joint :enture of Jaypee -ement with 9teel !uthority of India
:ea2ness
-ement industry in highly energy intensive.
-yclic and 3olitical condition effecting businesses.
Cue to 4ime stone poc"ets, maAor -ement manufacturing unit are situated near .ewa
5*adhya 3radesh6 and consumption of cement outside *adhya 3radesh is 17F which
adds burden of transportation cost for the company.
Opportunities
5
Government trust provides more opportunities to add hydropower generation and
development of highways>e&pressways and infrastructure.
Growth in IndiaJs tourism sector, with higher tourist arrivals and increase in economic
activities in the country will facilitate growth in 8ospitality =usiness.
Borthcoming common wealth games being hosted by India, the hospitality business
will get additional boost
Government emphasis on infrastructure and increased global demand will add
reDuirement of cement in India.
The Indian +conomy is e&pected to grow at around /F p.a. in the medium term. The
growth in envisaged to be driven by investment in infrastructure including .oads,
3orts, 3ower sector.
;1reats
-ement Industry is totally dependent on -oal, +nergy, and Transport. Cependency on
other industry is maAor threat for any industry.
Bor 8ydropower, e&pressways and cement 00-<7F of the inputs controlled by the
government.
8igh competition in hospitality.
8ydropower proAects e&ecution on mountain regions leads to ris" involvement.
-ontract payment ris" involve with -onstruction Industry.
Inustry Ana"ysis
The .ole of -ement Industry in India GC3 is significant in the economic development of the
country. The cement industry in India is one of the oldest sectors in India. -ement industry
contributes around $.2E percent to the nationHs GC3. .eal GC3 growth was placed at /.7 per
cent during #772-71, moderating from /.< per cent recorded during #77<-72 and /.E per cent
during #770-7<. 8owever, it was still significantly higher than the average of 2.1 per cent
achieved during the Tenth 3lan 5#77#L#7726. !lso, this is the first time since $/07-0$ that the
Indian economy recorded a growth of /.7 per cent or above for three years in succession.
*oderation in #772-71 was spread across several sub-sectors of industry and services, while
the agricultural sector registered improved growth. The industry is driven by the immense
growth in the housing sector, the infrastructure development, and construction of
transportation system
The Global financial turmoil, which affected the developed economies during #771-7/, has
had its ripple effect on the Indian economy as well. Indian GC3 growth slipped to 2F in the
year #771-7/ as against /F growth in the previous year. The slowdown of the economy has
affected housing, construction and infrastructure sector. 8owever, despite this, the cement
industry witnessed a demand of about 1F year on year during #771-7/. This was only
marginally lower than $7F recorded n the last # to ; years.

+conomy in the rural and small towns, the main mar"ets of interest for the company has
remained relatively insulted from the slow down. .ural income, in fact, has been on the rise
driven largely by continuous growth in agriculture during the past few years and the growth
8
of the service sector. This coupled with easy availability of finance has resulted in a healthy
demand for cement.
The lower growth in the year #771-7/, however, impacted the cement prices which remained
under pressure and were lower than the previous year. !lso the prices of raw materials, coal,
and freight rose significantly. !s a result of which the profitability of the cement industry has
been affected.
The per capita consumption of cement in India continues to be low. India is still way behind
the global average and this process of catching up with the international average will drive
the future growth of the cement industry. The governments, at the -entre and at the 9tate,
have underta"en several road and housing proAects in the area of our interest besides
announcements of several power proAects, specially in *.3. and K.3. J!4 also e&pect future
step up in the e&penditure on various rural schemes and enhanced allocation for rural sector.
-onstruction contributes more than 0 per cent to the nationHs GC3 and 21 per cent to the
gross capital formation.
The cement story was in the limelight over the past few fiscals owing to the fact that the
demand grew at a faster pace compared to supply and therefore, cement prices remained
firm. The need to build up infrastructure to sustain a /F GC3 growth, also "ept investors
"een on the sector.
Ce%ent Inustry in Inia
-ement Industry in India is on a roll at the moment. Criven by a booming real estate sector,
global demand and increased activity in infrastructure development such as state and national
highways, the cement industry has witnessed tremendous growth. 3roduction capacity has
gone up and top cement companies of the world are vying to enter the Indian mar"et, thereby
spar"ing off a spate of mergers and acDuisitions. Indian cement industry is currently ran"ed
second in the world after -hina.
Inustry Stru*ture
Indian cement industry dates bac" to $/$E - first unit was set-up at 3orbandar with a
capacity of $777 tonnes.
-urrently India is ran"ed second in the world with a total capacity of about #77
million tonnes 5*T6 in BG7/ Industry estimated at around .s. ;1,777 crores.
-ement grade limestone in the country reported to be 1/ billion tonnes.
00 - <7F of the cost of production are government controlled.
-ement sales primarily through a distribution channel. =ul" sales account for O $F of
the total cement produced.
.eady mi& concrete a relatively nascent mar"et in India.
<
%ith almost total capacity utili(ation levels in the industry, cement dispatches have
maintained a $7 per cent growth rate. Total dispatches grew to $27 *T during #772L
71 as against $00 *T in #77<L72.
Mar2et Si=e , )e%an ;rens
+stimated mar"et si(e - .s. ;1,777 crores.
Industry grew by /-$7 percent growth during #771-7/.
3roduction rose from $2< *n tonnes to #77 *n tonnes.
!ttributed to a host of factors including slow progress of maAor infrastructure proAects
Capa*ity , Prou*tion
Mn> tonnes ?+44834<@
Installed capacity #77.E
3roduction 54arge 3lants6 $1<.$
3roduction 5*ini 3lants6 $<
-apacity utilisation /; F
Sa"es , )istribution
-ement in India is primarily sold through a distributor - dealer networ".
Total margins for the distribution channels - $2 to $1 F.
Cirect sales less than ; F of total sales.
*anaging the distribution networ" , strong wor"ing relationships with distributors,
contractors etc.
MaAor Ce%ent P"ants
-ompanies N 0/
3lants N $$<
Typical installed capacity per plant N
!bove $.0 mntpa
Total installed capacity N $70 mntpa
3roduction /1-// N 1$.< mntpa
+&cise N.s. ;07> tonne
!ll India reach through multiple
plants
+&port to =angladesh, ?epal, 9ri-
4an"a, K!+ and *auritius
9trong mar"eting networ", tie-ups
with customers, contractors
%ide spread distribution networ".
9ales primarily through the dealer
channel
Mini Ce%ent P"ants
?early ;77 plants
4ocated in GuAarat, .aAasthan, *3
Typical capacity O #77 tpd
Installed capacity around / mn.
Tonnes
3roduction around N <.# mn tonnes
+&cise N .s. #77> tonne
*ini plants were meant to tap
scattered limestone reserves.
8owever most set up in !3
*ost use vertical "iln technology
3roduction cost > tonne - .s. $,777 to
$,E77
3resence of these plants limited to
the state
Infrastructural facilities not the best
Go6ern%ent Po"i*ies
14
Pri*es
3rice fluctuations high
+ssentially determined by demand
3rices also vary with grades
P"ayers
Over ;27 companies in the organi(ed sector.
8owever, industry dominated by #7 companies who account for over 27F of the
mar"et
Individually no company accounts for over $#F of the mar"et
Re&iona"
3lants located close to limestone centers
.esulted in cross regional movement
17F of the production consumed within the states e&cept *adhya 3radesh
;ransportation
Transportation costs high - freight accounts for $2F of the production cost
.oad preferred mode for transportation for distances less than #07"ms.
8owever, industry is heavily dependent on roads as the railway infrastructure is not
adeDuate - shortage of wagons.
-ement, being a bul" commodity, is a freight intensive industry and transporting cement over
long distances can prove to be uneconomical. This has resulted in cement being largely a
regional play with the industry divided into five main regions vi(. north, south, west, east and
the central region. %hile the southern region always had e&cess capacity in the past owing to
abundant availability of limestone, the western and northern regions are the most lucrative
mar"ets on account of higher income levels. 8owever, with capacity addition ta"ing place at
a slower rate as compared to growth in demand, recently the demand supply parity had also
been restored to some e&tent in the 9outhern region. -onsidering the pace at which
infrastructural activity is ta"ing place in different regions, the players have lined up
e&pansion plans accordingly.
Capa*ity aitions
!cDuisitions have been the mainstay of the business
11
.egional imbalance resulting in cross regional movement - limestone availability in
poc"ets has led to uneven capacity additions
Inustry inputs
8ighly capital intensive industry
?early 00-<7F of the inputs controlled by the government
Bacing problems due to power shortage
-oal availability and Duality affecting production
*ini plants reali(ation of revenue lower than large plants, survival difficult
)e%an ri6ers
Infrastructure , construction sector the maAor demand drivers. 9ome demand
determinants
+conomic growth
Industrial activity
.eal estate business
-onstruction activity
Investments in the core sector
Future
!ccording to a report by the I-.! Industry *onitor, the installed capacity is
e&pected to increase to #E$ *T3! by BG #7$7-end. IndiaHs cement industry is li"ely
to record an annual growth of $7 per cent in the coming years with higher domestic
demand resulting in increased capacity utili(ation.
*oreover, according to the -entre for *onitoring Indian +conomy 5-*I+6, cement
production is e&pected to grow by 1.$ per cent and demand for the same is li"ely to
rise by a healthy 2-2.0 per cent in BG #77/-$7.
Bey Points
Supp"y! The demand-supply situation is tightly balanced with the latter being
marginally higher than the former.
)e%anN 8ousing sector acts as the principal growth driver for cement. 8owever, in
recent times, industrial and infrastructure sector have also emerged as demand drivers
for cement.
#arriers to entry! 8igh capital costs and long gestation periods. !ccess to limestone
reserves 5principal raw material for the manufacture of cement6 also acts as a
significant entry barrier.
#ar&ainin& po$er o( supp"iers! 4icensing of coal and limestone reserves, supply
of power from the state grid and availability of railways for transport are all
controlled by a single entity, which is the government. 8owever, nowadays producers
are relying more on captive power, but the shortage of coal and volatile fuel prices
remain a concern.
1+
#ar&ainin& po$er o( *usto%ers! -ement is a commodity business and sales
volumes mostly depend upon the distribution reach of the company. 8owever, things
are changing and few brands have started commanding a premium on account of
better Duality perception.
Co%petition! Cue to large number of players in the industry and very little brand
differentiation to spea" of, the competition is intense with players resorting to
e&panding reach and achieving pan India presence.

Ce%ent Inustry! Finan*ia" Year C4<

Curing BG7/, the industry maintained volume growth of around $7F. The industry added
nearly ;7 *T in BG7/ over the previous year ta"ing the total capacity to nearly #$# *T3!.
India owing to its locational advantage has been catering to the cement reDuirements of the
*iddle +ast and the 9outh +ast !sian nations. 8owever, the e&ports were curtailed in BG7/
in order to satisfy the domestic demand and contain inflation. %hile demand growth stood at
$7F, average industry cement realisations 5average of price per bag of cement6 were higher
by about 0F. The growth in realisations slowed down as additional capacities coming on
stream eased the supply pressures.

Cespite the fact that the Indian cement industry has cloc"ed production of more than $77 *T
for the last five years, registering a growth of nearly /F to $7F, the per capita consumption
of around $;E "gs compares poorly with the world average of over #<; "gs, and more than
/07 "gs in -hina. This, more than anything, underlines the tremendous scope for growth in
the Indian cement industry in the long term.
Jaypee Asso*iate Li%ite ?Ce%ent )i6ision@
Jaypee group is the ;rd largest cement producer in the country. The groups cement facilities
are located in the 9atna -luster 5K.36, which has one of the highest
cement production growth rates in India.
The group produces special blend of 3ortland 3o((olana -ement
under the brand name IJaypee Cement" 533-6. Its -ement Civision
currently operates modern, computeri(ed process control
cement plants with an aggregate capacity of $;.0 *T3!. The
company is in the midst of capacity e&pansion of its cement
business in ?orthern, 9outhern, -entral, +astern and %estern
parts of the country and is slated to be a #E.;7 *T3! cement
producer by the year #7$7 and #<.17 *T3! by #7$$ with
-aptive Thermal 3ower 3lants totaling ;#2*%.
1-
In the near future, the group plans to e&pand its cement capacities via acDuisition and
greenfield additions to ma&imi(e economies of scale and build on vision to focus on large
si(e plants from inception.
Jaypee produces a wide variety of cements, which are specifically designed to cater to the
customerJs reDuirements for different types of cements in each of its mar"ets. !ll the brands,
which the -ompany produces, are so evolved in their characteristics and properties that they
will surpass =I9 9tandards. Bor each brand, the relevant =I9 standards are mentioned in
enclosed table along with a comparison with the =I9 reDuirement.
!ll brands are mar"eted in attractive 8C3+ bags, containing 07 @gs of Duality cement from
Jaypee. =ags are identified with a conspicuous Jaypee 4ogo, which also over the years has
come to be regarded as a 8allmar") of Duality.
Jaypee produces , mar"ets both 3ortland 3o((olana -ement 533-6 , all grades of Ordinary
3ortland -ement 5O3-6. ! brief introduction of each brand is enumerated as belowN-
Port"an Po==o"ana Ce%ent
Jaypee -ement produces special blend of 3ortland 3o((olana -ement and mar"ets it under
the popular brand name IJaypee -ementJ 533-6 .
Jaypee Ce%ent ?PPC@
Jaypee -ement 533-6 is a mar"et leader among all blended>composite cements in the
mar"ets of K.3, =ihar, *.3., 3unAab, 8aryana, Celhi , ?epal. Its uniDue design and blend,
with high strength clin"er and superior Duality flyash has made it the popular cement for
construction of large number of strong and durable structures in these states.
Bine particles of Jaypee -ement 533-6 when mi&ed with water readily form a smooth paste,
which results in a smooth surface. %hen used with sand and aggregates it yields a very
strong , durable concrete.
Jaypee -ement 533-6 helps to produce more cohesive concrete and mortar which is also less
prone to segregation and bleeding. Cue to this Duality, Jaypee -ement 533-6 is suitable for
any type of structural application.
Kse of superior Duality flyash in Jaypee -ement 533-6 not only reduces the incidence of lime
leaching from concrete and mortar but also results in refined pore structure, reduced
permeability and long term strength gain. These attributes ma"e the construction strong,
compact, impermeable and resistant to chemical attac"s.
Jaypee -ement 533-6 is being used for a number of applications li"e housing, commercial
comple&es, roads, wells, canals, dams etc. which establishes Jaypee -ement 533-6 as the
preferred choice of the discerning customer. It is particularly well suited for the tropical
climatic conditions of India.
J!4 produces ordinary 3ortland -ement and 3o((olana 3ortland -ement under the brand
name Jaypee -ement. -ement -apacity as per BG72 was 2*T3! with Over /0F utili(ation
rate , e&isting cement capacity is /.0*T3! which will increase to #0 *T3! till BG$7 ,
1.
;7.0 *T3! till BG$$.J!4 e&pect that utili(ation rate will hover around /7F till BG#7$$ due
to demand-supply mismatch , price will remain also stable till BG$$. +=ITC! *argin is
around ;EF from this division , we e&pect that margin will remain same due to the
bac"ward integration , some ta& benefits for its new plants in 8imachal 3radesh , Kttar
3radesh.
Issues *on*ernin& Ce%ent Inustry
8igh Transportation -ost is affecting the competitiveness of the cement industry.
Breight accounts for $2F of the production cost. .oad is the preferred mode for
transportation for distances less than #07"m. 8owever, industry is heavily dependent
on roads for longer distances too as the railway infrastructure is not adeDuate.
-ement industry is highly capital intensive industry and nearly 00-<7F of the inputs
are controlled by the government.
There is regional imbalance in the distribution of cement industry. 4imestone
availability in poc"ets has led to uneven capacity additions.
-oal availability and Duality is also affecting the production.
Mar2etin& Strate&ies
The strategic mar"eting plan lays out the tar&et %ar2ets and the value proposition the firm
will offer whereas the tactical mar"eting plan include the mar"eting mi& 5product (eaturesD
pro%otionD pri*in&D sa"es *1anne"s an ser6i*e@>
The sa"ient (eatures of the J!4Js planning activities underta"en are asN
Organi(ation develops %ission state%ents to share with the managers, employees
and the customers. ! "ey component of mar"eting strategy is often to "eep mar"eting
in line with a companyHs overarching mission statement.
=asic theory includes N
Target -ustomers
3roposition>@ey +lement
Implementation
17
Mar2et Penetration Strate&y!
Jaypee !ssociate 4imited 5-ement Civision6 defines itself in terms of the Duality that
it offers. The company first considers whether it could gain more mar"et share.
Jaypee !ssociate 4imited 5-ement Civision6 forms Jaypee !nmol 3ariwar 5J!36, a
community of stoc"iest and sales promoters of Jaypee -ement on basis of !nnual
-ement sales. They future categories J!3 into two categoriesN Gold and Ciamond
club. This 9trategy is basically for mar"et penetration and to enhance cements sales
by giving monthly, Duarterly and annual targets. This strategy created great
competitions between stoc"iest to achieve target.
Jaypee !ssociate 4imited launched its new brand campaign and announced its
association with the *aster =laster, 9achin Tendul"ar in !prilJ#77/.
Jaypee -ement with commissioned capacity of over $;.0 million tonnes per annum
5*T3!6 is a brand leader in its current mar"eting (one, consisting of -entral and
parts of ?orthern India.

Mar2etin& Mi'!
The four 3Hs are the parameters that the mar"eting manager can control, subAect to the internal
and e&ternal constraints of the mar"eting environment. The goal is to ma"e decisions that
center the four 3Hs on the customers in the target mar"et in order generate a positive response.
Prou*t )e*isions
The term "product" refers to tangible, physical products as well as services. The company
focuses upon
=rand name N Jaypee -ement
=rand ambassadorN 9achin Tendul"ar
PualityN %orld -lass Puality -ement I9O /77$N#777 certified
=ac" office 9upport
19
Pri*e )e*isions
3ricing strategy 5penetration, etc.6
9uggested retail price as per area
:olume discounts to stoc"iest and retailers
3rice fle&ibility as per demand and area
3rice discrimination
)istribution ?P"a*e@ )e*isions
Cistribution is about getting the products > services to the customer. 9ome e&amples of
distribution decisions includeN
Cistribution channelsN 9ales promoter, 9toc"iest, .etailer
*ar"et coverageN 5inclusive, selective, or e&clusive distribution6
9pecific channel membersN Bield officer, !rea manager
Order processingN Cepot offices in every district
Pro%otion )e*isions
In the conte&t of the mar"eting mi&, promotion represents the communication of information
about the product with the goal of generating a positive customer response. *ar"eting
communication decisions includeN
3romotional strategy 5push, pull, etc.6
!dvertising
3ersonal selling , sales force
9ales promotions
3ublic relations , publicity
*ar"eting communications budget
Prou*t Mi'
15
INVES;MEN; ANALYSIS
Bey Notes!
Q -ement -apacity to grow from 2million tpa to ;7.0 million tpa 5;rd largest in
India6 by BG#7$$.
Q The -ompany is e&ecuting $<7 @m TaA +&pressway proAect from ?oida to !gra ,
recently bagged $7E2 @m Ganga +&pressway 3roAect from ?oida to =allia.
Q !s the Toll collection from TaA +&pressway , Ganga +&pressway 3roAects will
give negative returns to the company so to compensate this loss K3 Govt. has
granted development rights of <#07 acre land in compensation of TaAe&pressway
, rights of ;7,777 acre land development in compensation of Ganga +&pressway
which will add significant value to J3!.
Q J!4Js + ,- division is having an order boo" of K9R;.7/bn 52.# times of BG72
+,- revenue6.
Q -ompany through its subsidiaries is operating # 8ydro 3ower plant of 277 *%
-apacity , a $777*% 8ydro power proAect is under e&ecution. -ompany has
also signed *O! with !runanchal 3radesh Govt.on =OOT basis for #0#0*%
8ydro power plant , another
Q *O! has been signed with *eghalya Govt. for a capacity of 2#7*%.
Q -ompany has gone into bac"ward integration for its $777*% Thermal 3ower
plant, *3 by acDuiring -oal mining in *3 , recently J!4 has acDuired *alvi"a
9teelJs !ssets for .s.#72cr., the steel produced from this plant will be used in its
-onstruction division.
Q J!4 has entered into Oil +&ploration business through a J: with 3ri(e 3etroleum
5a J: -ompany of 83-4 , I-I-I =an"6.
The wor"ing results of the -ompany for the year under report are as underN

18
Prou*t Na%e Sa"es Euantity
?M;@
Sa"es Va"ue
?Rs> Crores@
Prou*t Mi' ?F@
-ement <##7;<$ #,#E7.0$ 0$.21
Income Brom -onstruction
%or"
7 $,2;7.$/ ;/./1
.eal +state 7 #00.1; 0./$
!sbestos 9heets , *oulded
3roducts
1<<<E 0$.<0 $.$/
8otel 7 ;7.01 7.27
3ower 7 $1.$$ 7.E$
5.s. in -rores6

Finan*ia" year ene -1>4->+448 -1>4->+445

Gross .evenue E#2;.1/ ;020.E0
3rofit before Cepreciation , Ta& $7E<.<0 21#./<
4essN Cepreciation #7;.;7 $<;.70
3rofit before Ta& 1E;.;0 <$/./$
4essN 3rovision for Ta&
-urrent Ta& $02.2< $/0.7/
- Ceferred Ta& </.00 <./7
3rofit after Ta& <7/.<2 E$E./7
!ddN
- 3rofit brought forward $$$7.7< /77.;1
- C.. no longer reDuired <7.77 $$27.7<
;#.77 /;#.;1

3rofit available for appropriation $22/.2; $;E2.#1
4essN Transferred toN
- 3rovision for Cividend
3ertaining to 3revious Gear
5including Cividend Ta&6 7.7< -
- .eserve for 3remium on B--= ;<.1# ;$./1
- Cebenture .edemption
.eserve ;E.10 2$.;;
- General .eserve <$.77 E;.77
- Interim Cividend <2.2E E;.2E
- 3roposed Binal Cividend E<.1< ;0.71
- Ta& on Cividends $/.E2 #<<.17
$#.7/ #;2.##

#a"an*e *arrie to #a"an*e S1eet 171+><- 1114>49

#asi* Earnin&s Per S1are 7>.+ ->8+
GFa*e 6a"ue Rs> + per s1areH

)i"ute Earnin&s Per S1are 7>-+ ->77
GFa*e 6a"ue Rs> + per s1areH


The results of the current year reflect an encouraging growth over that of previous year as
underN -

1<

Resu"ts Init Year Ene
-1>4->+448
Year Ene
-1>4->+445
In*rease
1> Pro(it be(ore ta' .s. -rore 1E;.;0 <$/./$ ;<.7F

+> Pro(it a(ter ta' .s. -rore <7/.<2 E$E./7 E<./F

-> Earnin&s per s1are .s. 0.E# ;.1# E$.1F
?Fa*e Va"ue Rs>+@



Operations
The production and sale of -ement and -lin"er during the year, as compared to the previous
year, are as underN-

+445348 +449345

-ement 3roduction 5*T6 <2,2<,<<; <<,17,/$7

-lin"er 3roduction 5*T6 0$,;0,$7/ 0$,7#,/;/

-ement 9ale 5*T6
5including 9elf--onsumption6 <2,<;,#;2 <<,;1,E7/

-lin"er 9ale 5*T6 - $,77,7/0

The cement and clin"er production for the year under report registered a growth over the
previous year.

The combined increased capacity of Jaypee .ewa 3lant, Jaypee =ela 3lant, Jaypee -ement
=lending Knit and Jaypee !yodhya Grinding Operation 5J!!GO6 as on *arch ;$, #771 was
2 million tonnes per annum. The 3hase-I of -hunar and Calla -ement 3lants in Kttar
3radesh and Grinding Knit in 8aryana have been successfully commissioned during the
months of Bebruary and *arch #771.

Curing the year under review, /;F of the power reDuirements of the cement plants at .ewa
and =ela were met from captive power plants entailing substantial saving in cost of
production.

E'pansion P"ans
The -ompany has underta"en creation of new>enhancement of e&isting capacities of
cement>cement products, directly or through Joint :enture and 9pecial 3urpose :ehicles
over a period of ne&t four years within an appro&imate capital outlay of over .s. ;.777
-rores.
#usiness Moe" o( JAL
J!4 , its subsidiaries are in the business of -ement, 8ydropower 3roAects construction,
.oad , highway 3roAects, 8ydro power generation , in the 8ospitality. -ement has been
+4
the core revenue business segment for the company has over 07F of its revenue come from
this segment 59tandalone basis6 but construction business also contributes around E<F
Re6enue #rea2up3 Stana"one?FY45@ Re6enue #rea2up3Stana"one ?FY48@
Ce%ent Capa*ity E'pansion S*1eu"e
!ll the capacity e&pansion plans are running as per schedules , these enhance capacities
once operational will increase the revenue from the cement division. -ompany has recently
forged a J: with 9!I4 at =hilai, -hhatisgarh for setting up a #.#mtpa plant from slag of
9!I4Js plant e&pected to be commissioned by Cec., #77/, J!4 has 2EF in this J:.9lag
-ement has a very good mar"et value , have better O3*.J!4 has bought assets of the K3
9tate -ement -orporation 5K39--46 for .s.E0/ -r with a capacity of #.# mt which is going
to e&pand its footprint in K3 region also.
S1are1o"in& Pattern
+1
As on Sep +448
Cate&ory o( s1are1o"er
No> o(
s1are1o"ers
No> o( S1ares Fa&e
s1are1o"in&
9hareholding of 3romoter and 3romoter
Group

Indian
Individuals > 8indu Kndivided
Bamily
/2 07//0;2; E.;E
=odies -orporate $1 E270;<777 E7.7/
Boreign
Individuals 5?on-.esidents
Individuals > Boreign
Individuals6
$ 1$1E7 7.7$
3ublic 9hareholding
Institutions
*utual Bunds > KTI $0$ $7//7#$;; /.;<
Binancial Institutions > =an"s $7< 0$E#<70 7.EE
Insurance -ompanies $0 ;2E7#7// ;.$/
Boreign Institutional Investors #21 #0E#/;;7# #$.<<
?on-Institutions
=odies -orporate E;7; 2//7$E#0 <.1$
Ini6iua"s
Individual shareholders holding
nominal share capital up to .s.
$ la"h
EE$E21 $#7//E/7< $7.;$
Individual shareholders holding
nominal share capital in e&cess
of .s. $ la"h
01 $7E<22E1 7.1/
Any Ot1ers ?Spe*i(y@
?on .esident Indians E7</ 2$#0$<0 7.<$
Trusts ## $#2#//7 7.$$
Overseas -orporate =odies < E/</077 7.E#
Boreign -orporate =odies < $#$E/2$< $.7E
-learing *embers <2/ 10$21$< 7.2;
;ota" .71+85 115-57+918 144>44
FINANCIAL S;A;EMEN; ANALYSIS
++
Finan*ia" Ratio Ca"*u"ation
+-
Finan*ia" Ratio Ana"ysis
LiJuiity Ratio
4iDuidity ratios provide information about a firmHs ability to meet its short-term financial
obligations. They are of particular interest to those e&tending short-term credit to the firm.
Current Ratio!
-urrent ratio shows that the ability of the firm to meet its current liabilities higher the current
ratio greater the short term solvency. -urrent ratio for J!4 is above $ for BG #77E-70 to BG
#772-71 shows that J!4 have better liDuidity. i.e. Bor each rupee of liability there is more
than one rupee of current asset available. -urrent ratio for J!4 increased from #.71 5BG
#77;-7E6 to#.21 5BG#770-7<6 and then decrease to $.1# 5BG #772-716. -urrent ratio for BG
#770-7< is increased because of introduction of new proAect li"e Noia E'press$ay.
Eui*2 Ratio!
+ven a -urrent .atio S$ may not indicate better liDuidity so we study Duic" ratio for a
company which do not include not readily reali(able assets li"e inventory. P.S$ shows that
J!4 has good liDuidity.
Cas1 Ratio!
-ash ratio shows that the cash in hand deceases for J!4 from BG #770-7< to BG #772-71.
The cash ratio is the most conservative liDuidity ratio of all. It only measures the ability of a
firmHs cash, along with investments. It only loo"s at the most liDuid short-term assets of the
company, which are those that can be most easily used to pay off current obligations. It also
ignores inventory and receivables, as there are no assurances that these two accounts can be
converted to cash in a timely matter to meet current liabilities. -ash ratio is also "nown as
financial slac".
Le6era&e Ratio
9olvency or 4everage ratios provide an indication of the long-term solvency of the firm.
Knli"e liDuidity ratios that are concerned with short-term assets and liabilities, financial
leverage ratios measure the e&tent to which the firm is using long term debt.
)ebt3EJuity Ratio!
Cebt eDuity ratio shows the mi& of debt and eDuity used. ! high debt eDuity ratio may put
stress on companyJs head but ban" and financial institutions normally e&tend long term to
firms having Cebt-+Duity ratio within #N$ and J!4 having Cebt- +Duity ratio around #. The
Cebt to +Duity .atio is closely watched by creditors and investors, because it reveals the
e&tent to which company management is willing to fund its operations with debt, rather than
eDuity. Bor J!4 debt-eDuity ratio shows that ban" and investors are willing to fund its
operations without higher ris".
)ebt3Asset Ratio!
Cebt-!sset ratio for J!4 shows that J!4 is very less dependent on leverages. The debt ratio
compares a companyHs total debt to its total assets, which is used to gain a general idea as to
the amount of leverage being used by a company. ! low percentage means that the company
is less dependent on leverage, i.e., money borrowed from and>or owed to others. The lower
the percentage, the less leverage a company is using and the stronger its eDuity position.
Interest Co6era&e Ratio!
The interest coverage ratio is used to determine how easily a company can pay interest
e&penses on outstanding debt. The lower the ratio, the more the company is burdened by debt
e&pense and higher the interest coverage ratio shows better solvency of the firm. !s per trend
noticed interest coverage ratio is increasing which shows that J!4Js 9olvency is increasing
)ebt3Ser6i*e Co6era&e Ratio!
Cebt 9ervice -overage .atio is a ratio used by ban" loan officers in determining income
property loans. This ratio should ideally be over $. That would mean the property is
generating enough income to pay its debt obligations. J!4 having debt coverage ratio always
greater than $ 5between ;.2 , 26 shows having enough income to pay its obligations.
;urno6er Ratio
! measure of the number of times a companyHs inventory is replaced during a given time
period. Turnover ratio is calculated as cost of goods sold divided by average inventory during
the time period. ! high turnover ratio is a sign that the company is producing and selling its
goods or services very Duic"ly.
In6entory ;urno6er Ratio!
! low turnover implies poor sales and, therefore, e&cess inventory. ! high ratio implies either
strong sales or ineffective buying. 8igh inventory levels are unhealthy because they represent
an investment with a rate of return of (ero. It also opens the company up to trouble should
prices begin to fall.
Bor J!4, Cecrease in Inventory Turnover .atio shows inefficient inventory management by
the company for last five years' i.e. inventory holding period is increasing which cost to
company in terms of inventory holding in warehouses.
Fi'e Assets ;urno6er Ratio!
8igh ratio indicates a high degree of efficiency in asset utili(ation' i.e. the company has been
more effective in using the investment in fi&ed assets to generate revenues. Bi&ed assets
turnover ratio decreased from $.$; 5BG #77;-7E6 to 7.<< 5BG #772-716 which shows that
companyJs efficiency to generate revenue from its investment in fi&ed assets. It is because of
decrease in total fi&ed assets in comparison to Total funds employed in BG #772-71 with
respect to BG #77;-70 5<EF to 01F of total fund employed that BG year6.
;ota" Assets ;urno6er Ratio!
Total !ssets Turnover .atio measures how efficiently assets are employed, overall. !s J!4s
total assets are increased by ;.10 times where as the ?et incomes only increased by a factor
of $.<2. 8ence the Total assets turnover ratio decreased for J!4 from BG#77;-7E to BG
#772-71.
Pro(itabi"ity Ratio
3rofitability .atios are used to assess a businessHs ability to generate earnings as compared
to its e&penses and other relevant costs incurred during a specific period of time. Bor most of
these ratios, having a higher value relative to a competitorHs ratio or the same ratio from a
previous period is indicative that the company is doing well.
Gross Pro(it Mar&in!
3rofitability ratios offer several different measures of the success of the firm at generating
profits. ! higher profit margin indicates a more profitable company that has better control
over its costs compared to its competitors or previous years. The Gross profit margin for J!4
is continuously increased from BG#77;-7E to BG #772-71 shows that in BG #772-71 J!4
was more profitable company as it was in BG #77;-7E.It also shows that J!4 having better
reali(ation of sales and effective cost control.
Net Pro(it Mar&in!
?et profit margin denotes overall profitability- profit from operations as well as profit>4oss
from non- operating activities. J!4 net profit margin increases from <.<;F to $E.;0F for
over 0 financial years. In BG #770-7< it was recorded $/F due to profit of .s ;<,$;2 la"hs
from 9ale of shares of Jaipra"ash 8ydropower 4td.
Return on Assets!
!n indicator of how profitable a company is relative to its total assets. .O! gives an idea as
to how efficient management is at using its assets to generate earnings. The higher the .O!
number, the better, because the company is earning more money on less investment.
The .O! is increased from E.1F to 0.0F during the time period of five years, shows the
companies earning is increasing year on year. In BG #770-7<, .O! was recorded as $7.EF
due to increase in companies profit from sale of shares of Jaipra"ash 8ydropower 4td.
Earnin& Po$er!
+arning 3ower demonstrated ability of a business to earn a profit on invested capital after
paying owners and employees, servicing obligations, and fully recogni(ing its costs while
following good accounting practices. +arning power of J!4 decreases due to percentage
increase in total assets from BG #77;-7E to BG #772-71 is higher than percentage increase in
profit before interest and ta&es. Bor investor, it indicates ris" in the business due to
decreasing earning power.
Return on EJuity!
! measure of a corporationHs profitability that reveals how much profit a company generates
with the money shareholders have invested. .eturn on eDuity is decreased from $0.2F to
$;.;F over the period of five years. This shows that company is not using its investment
funds properly to generate earnings growth.
Finan*ia" Ratio Ana"ysis! Con*"usion
Jaypee !ssociate 4imited provides its standalone balance sheet and 3rofit , 4oss 9tatement.
Its standalone financial statement includes source of fund and application of funds for
-ement, -onstruction, .eal +state, 8otel>8ospital, 8ydro 3ower and !sbestos 9heets
subsidiaries. There is no other company in India that also deals in same field as Jaypee
!ssociate 4imited. 8ence it was not possible to compare Jaypee !ssociate 4imited with its
competitor because it does not have any direct competitor.
In this report, Bive year financial analysis has been done for Jaypee !ssociate 4imited and
concluded the financial position of the company.
Jaypee !ssociate 4imited has a favourable liDuidity position
!ll the liDuidity ratios of Jaypee !ssociate 4imited are higher than $ shows that
company have good short-term solvency.
4everage ratios of Jaypee !ssociate 4imited are increased but show a better long term
solvency.
Cecrease in Inventory Turnover ratios shows inefficient inventory management.
Bi&ed asset turnover ratios indicate companyJs efficiency to generate revenue from its
investment in fi&ed assets.
3rofitability ratios shows that Jaypee !ssociate 4imited is a good profit generating
firm and increasing rapidly due to boom in real estate and construction industry.
#a"an*e S1eet an Pro(it , Loss State%ent!
Verti*a" Ana"ysis
:ertically inde&ed =alance 9heet shows that Total fund employed are increased by ;.<< times
from BG #77;-7E to BG #772-71. 9hare holder fund increased from $/.22F of total funds
employed over BG #77;-7E to #2.1EF of total funds employed over BG #772-71. In BG
#772-71 the eDuity warrants also add by amount of #.#;F.
%hereas 4oan funds decreased to <E.#<F of total funds employed over BG #772-71.from
<1.E7F of total funds employed over BG #77;-7E because of decrease in secured loan in BG
#772-71.
Total fi&ed assets decreased to 2;.<EF of total funds employed over BG #772-71.from
1<.E;F of total funds employed over BG #77;-7E because of decrease in gross bloc" in BG
#772-71.
Investment increased from 7.E1F of total funds employed over BG #77;-7E to 7.<2F of total
funds employed over BG #772-71.
-urrent assets increased but current liabilities for BG #772-71 with respect to BG #77;-7E
signifies that ?et -urrent !ssets increased from $$.20F of total funds employed over BG
#77;-7E to #0.E7F of total funds employed over BG #772-71.
:ertically inde&ed 3rofit , 4oss 9tatement shows that manufacturing, -onstruction, real
estate and hotel e&penses decreased from 01F to E2F of ?et sales of respective years from
BG #77;-7E to BG #772-71. ItJs due to decrease in construction e&penses from #<F to $0F
of ?et sales of respective year from BG #77;-7E to BG #772-71. This decrease in
construction e&penses is due to completion on various proAects.
=alance carried out to =alance 9heet is heavily increased from /F to ;0F of net income of
respective years from BG #77;-7E to #772-71. This happened due to large profit generation
by cement division in BG #772-71 and also due to profit given by new and booming divisionN
8otel and real estate.
:ORBING CAPI;AL MANAGEMEN;
:or2in& Capita" Mana&e%ent
%or"ing -apital *anagement, also referred to as short term financial management, refers to
the day to day financial activities that deal with current assets 5Inventories, debtors, short-
term holdings of mar"etable securities and cash6 and current liabilities 5 9hort term debt,
trade creditors, accruals, and provisions6.
The @ey issues in wor"ing capital management areN
$6 %hat is the optimal level of inventory for the operations of the firmT
#6 9hould the firm credit to its customersT
;6 8ow much cash should the firm carry on handT
E6 %hat sources of short term finance are appropriate for the firmT
*anagement of wor"ing capital is one of the most important and "ey resources of an
organi(ation for caring its day-to-day operation. %or"ing capital can be ta"en as funding
resources for routine activities of business. It is the most vital and important part of fund
management and profitability for business. It may be needless to maintain that without proper
management of wor"ing capital, the businesses will start struggling for its e&istence and be
generated by numerous short-term funding resource and short-term credits and loans.
There are two types of wor"ing capitalN
$. Gross %or"ing -apital
#. ?et %or"ing -apital
Gross wor"ing capital refers as current assets whereas ?et wor"ing capital is difference
between current assets and current liabilities. -urrent assets have a short life span. +ach
-urrent asset is swiftly transformed into other assets formsN cash is used for acDuiring raw
materials' raw materials are transformed to finished goods 5this transform may involve
several stages of wor" in process' finished goods, generally sold on credit, are converted into
account receivable' and, finally, account receivable, on reali(ation, generate cash. The short
life span of wor"ing capital components and their swift transformation from one form to
another "nown as wor"ing capital cycle.
:or2in& Capita" Cy*"e
There are two elements in the business cycle that absorb cash - In6entory 5stoc"s and wor"-
in-progress6 and Re*ei6ab"es 5debtors owing you money6. The main sources of cash are
Payab"es 5your creditors6 and EJuity an Loans.
Bactors influencing %or"ing -apital reDuirement
There are many factors which can affect the wor"ing capital directly or indirectly. The
important ones areN
?ature of business
9easonality of operations
3roduction policy
*ar"et condition
-onditions of supply
4evel of -urrent assets
!n important wor"ing capital policy decision is concern with the level of investment in
current assets.
:or2in& *apita" po"i*y ine' ?:CPI@
The level of current assets can be measured by the ratio of current assets to fi&ed assets or
total assets. ! higher ratio means conservative current asset policy while a lower ratio means
an aggressive current asset policy. ! conservative policy implies greater liDuidity and lower
ris" and return. !n aggressive policy indicates poor liDuidity and higher ris" and return.

%-3I U-urrent assets >Total Bi&ed assets
:or2in& *apita" po"i*y (or JAL
9ource for proAected dataN
-urrent assets to fi&ed assets ratio clearly signifies that the company in BG #77E-70, BG
#77<-72 and BG #772-71 has maintained an average wor"ing capital policy with -!>B! ratio
7.02,7.01 and 7.0< respectively. =ut in BG #770-7< the company has graduated to a
conservative policy maintaining higher -!>B! ratio. !s far as proAections are concern the
company intends to maintain lower -!>B! ratio which clearly as"s for more steady and
aggressive wor"ing capital policy.
On !naly(ing the balance sheet one thing comes the company has moved to very economical
front as far as maintaining cash and ban" balances are concern particularly in BG #772-71
which poses significant amount of ris" because company is losing its most liDuid assets.
Operatin& Cy*"e an Cas1 Cy*"e
Operatin& *y*"e an *as1 *y*"e are two important components of wor"ing capital
management. Together they determine the efficiency of a firm regarding wor"ing capital
management.
Operating cycle refers to the delay between the buying of raw materials and the receipt of
cash from sales proceeds. In other words, operating cycle refers to the number of days ta"en
for the conversion of cash to inventory through the conversion of accounts receivable to cash.
It indicates towards the time period for which cash is engaged in inventory and accounts
receivable. If an operating cycle is long, then there is lower accessibility to cash for
satisfying liabilities for the short term.
Operating cycle ta"es into consideration the following elementsN accounts payable, cash,
accounts receivable, and inventory replacement.
The following formula is used for calculating operating cycleN
Operatin& *y*"e K in6entory 1o"in& perio L A**ount Re*ei6ab"e Perio
Cas1 *y*"e is also termed as net operating cycle, asset conversion cycle, wor"ing capital
cycle or cash conversion cycle.
-ash cycle is implemented in the financial assessment of a commercial enterprise. The more
the figure is increased, the higher is the period for which the cash of a commercial entity is
engaged in commercial activities and is inaccessible for other functions, for instance
investments. The cash cycle is interpreted as the number of days between the payment for
inputs and getting cash by sales of commodities manufactured from that input.
The fundamental formula that is applied for the calculation of cash conversion cycle is as
followsN
Cas1 *y*"eKOperatin& *y*"e 3 A**ount payab"e Perio
*ar H7E *ar H70 *ar H7< *ar H72 *ar H71
Inventory Turnover .atio 0.7; E./; #.2E #.1; <.1;
Cebtors Turnover .atio 2.$; 1.0/ 2./1 2./; 2.<<
Investments Turnover .atio /.1$ 1.0$ ;.<$ ;.1; <.1;
Inventory 8olding 3eriod 5Cays6 2; 2E $;; $#/ 0;
!ccount .eceivable 3eriod 5Cays6 0$ E# E< E< E1
!ccount 3ayable period 5Cays6 ;2 E; $7$ /0 0;
9ourceN
Operatin& Cy*"e ?)ays@ 1+. 115 15< 157 141
Cas1 Cy*"e ?)ays@ 85 5. 58 84 .8
Thus Jaypee !ssociate limited decreases its collection of payment 12 days to E1 days from its
customers from the time it pays for its inventory over the time period of five years.
It helps Jaypee !ssociate to monitor the behavior of overall operating cycle and its individual
components. Bor this time series analysis has been done. In time- series analysis, the duration
of operating cycle is compared over the duration of the operating period of Jaypee !ssociate
4imited and it is concluded that J!4 improved its wor"ing capital management efficiency.
A Stuy on Fir% E%p"oyees Sa6in& as a Probab"e Sour*e o(
;e%porary :or2in& Capita"
ObAe*ti6e o( ProAe*t
To assess the employee saving as a probable source of temporary wor"ing capital finance.
Bollowing are the specific obAectiveN
$. To study the consumption and saving pattern of employee.
#. To assess the investment pattern of employee.
;. To study the employee willingness to investment in firm investment plans.
E. To analysis the element of permanent capital and temporary wor"ing capital
0. To study the source of wor"ing capital finance, permanent and variable wor"ing
capital.
)es*ription o( Pri%ary )ata
Introu*tion
%e have collected the /; sample through random sampling method from cement division of
Jaipra"ash !ssociate 4imited. The study Puestionnaire consists of seven Duestions
5!nne&ure - $6 to fulfill the obAective of study, which are as belowN
To study the saving pattern of employee with respect of their income.
To assess the investment pattern of employee with respect to their income.
To study the employee willingness to investment in firm investment plans.
Sa6in& pattern o( E%p"oyee
Our survey reveals that #/ percent of respondent belongs to .s #0,777 L .s ;7,777 income
group, #2 percent respondent belongs to more than thirty thousand income group and #E
percent respondent belongs to .s #7,777 L .s #0,777 income group. 1# percent respondent
belongs to the .s #7,777 L .s #0,777 to *ore than .s ;7,777 income group. 5refer table $6
;ab"e! 1
Mont1"y In*o%e
BreDuency 3ercent
4ess then .s 0,777 # #
.s 0,777 L .s $7,777 ; ;
.s $7,777 L .s $0,ooo $$ $#
.s $0,777 L .s #7,777 ?il ?il
.s #7,777 L .s #0,777 #E #<
.s #0,777 L .s ;7,777 #2 #/
*ore than .s ;7,777 #0 #2
Total /# $77
Mont1"y Sa6in&
!t the saving end %e found that ;2 percent respondent fall under 0-$7 saving percent in
respect to their income , while only $ percent respondent fall under the #7-#0 saving percent
in respect of their income. !t the same time maAor respondents fall under less than $0 percent
saving in respect to their income. 5.efer table #6
;ab"e! +
Mont1"y Sa6in&
BreDuency 3ercent
4ess than 0 percent #7 ##
=etween 0-$7 percent ;E ;2
=etween $7-$0 percent #$ #;
=etween $0-#7 percent $< $2
=etween #7-#0 percent $ $
=etween #0-;7 percent ?il ?il
*ore than ;7 percent ?il ?il
Total /# $77
In6est%ent pattern o( e%p"oyee
%e found that $2 5!ddition of 9. ?o E, 0, <,26percent respondent li"e to invest in ris"y
product li"e share , mutual fund and remaining 1; 55!ddition of 9. ?o $, #, ;, 1, /, $766
percent people use to invest their saving with non ris"y product li"e ban", post office. 59ee
table ; , Big ;6
E%p"oyee $i""in&ness o( in6est%ent in Jaypee
Our 1; percent respondent is shown interest to invest their saving with Jaypee associate, if
firm bring attractive plan. %hile $2 percent respondent do not shown interest to invest their
saving with Jaypee associate. 59ee table E and Big E6
Table E
%illingness of investment in J3
.esponse BreDuency 3ercent
Ges 2< 1;
?o $< $2
Total /# $77
;ab"e! -
9.?O 3lace of InvestmentV BreDuency 3ercent
$ $ 0 0
# # #7 ##
; #,$ $ $
E #,; ; ;
0 #,;,E $ $
< #,;,E,0 $$ $#
2 #,;,0 $ $
1 #,E ; ;
/ #,E,0 #2 #/
$7 #,0 #7 ##
$$ Total /# $77
M13Post ofce saving prou*tD +3Bank Saving prou*tD -3Share
%ar2etD .3Mutual FunD 73 Insurance product
Table 0 shows that 02 F respondent are ready to invest their E7 percent of their saving with
Jaypee investment plan, $$ percent respondent are ready to invest their 07 percent of their
saving. It means <1 percent respondent is ready to invest their more than E7 percent saving
with Jaypee associate. 59ee table 06
;ab"e 7
3ercentage of saving from total saving
F of saving BreDuency 3ercent
$7 ?I4 ?I4
#7 2 1
;7 #; #0
E7 0# 02
07 $7 $$
Total /# $77
Table < revel that 07 percent respondent reDuired $-# percent more interest rate then
prevailing mar"et interest rate on saving, while $7 percent respondent reDuired E-0 percent
more interest rate prevailing mar"et interest rate.5see table <6
;ab"e 9
.eDuired Interest .ate
Interest rate
BreDuency 3ercent
*ore than $-# percent as
mar"et rate
E< 07
*ore than #-;percent as
mar"et rate
$$ $#
*ore than ;-Epercent as
mar"et rate
#< #1
*ore than E percent as
mar"et rate
/ $7
Total /# $77
Su%%ary o( )ata *o""e*te
9tatistics

*ontly
Income
F of 9aving 3lace
of I?:.
%illing in
J3
F of Income
?o. sample collected :alid /# /# /# /# /#
*issing 7 7 7 7 7
9td. +rror of *ean 7.$E#12< 7.$7/#EE 7.7;/2;E 7.72/<##
9td. Ceviation $.;27E$1 $.7E21#/ 7.;1$$$# 7.2<;2$
:ariance $.1217E< $.7/2/E< 7.$E0#E< 7.01;#0E
9"ewness -$.##$/2 7.;#E$0E -$.2E/#2 -7.07#/2
9td. +rror of 9"ewness 7.#0$;E# 7.#0$;E# 7.#0$;E# 7.#0$;E#
@urtosis $.1<$$0E -7.1E$< $.71;7$; 7.$#;111
9td. +rror of @urtosis 7.E/22$$ 7.E/22$$ 7.E/22$$ 7.E/22$$
Finin&s
*aAority of Jaypee employee save up to $0 percent of their monthly income.
*ost of Jaypee employee invests their saving at relatively low ris" investment
product, li"e ban", post office, insurance.
1; percent people are interested to invest their saving with Jaypee !ssociate 4imited.
*ost of employee reDuired only more than $-# percent interest rate then prevailing
mar"et rate.
*aAority of employee willing to invest to E7 percent of their savings with Jaypee
!ssociate 4imited.
Ano6a Ana"ysis!
!?O:!
%illing in J3

9um of 9Duares df *ean 9Duare B
=etween Groups #.77;$<< 0 7.E77<;; ;.72#;11
%ithin Groups $$.#$E#; 1< 7.$;7;/1
Total $;.#$2;/ /$
Brom above data, it is observed that the employees of Jaypee !ssociate 4imited are willing to
invest in their company if company comes with any investment plan to borrow funds from
them as temporary wor"ing capital of company even with interest rate slightly greater than
mar"et interest rate.
Con*"usions!
Jaypee !ssociate 4imited having good financial condition. Its profitability
appro&imately increased by ; times in comparison to BG #77;-7E.
The cement revenue was driven by volume growth of $0F driven by on account of
commissioning of # mtpa plant at 9iddhi *3 and ramp up at earlier commissioned
capacities at Calla and -hunar in Kttar 3radesh and a grinding unit at 3anipat in
8aryana.
-onstruction +=IT consolidated stands at .s$.$b 5vs .s2.<b standalone6' lower due
to elimination of .s<.<b towards e&ecution of in house proAects.
=ooming construction creates high demand of cement, 8igh prices results in high
profits.
-ement industry plays a vital role in the economic development of thecountry. The
economic progress can be achieved by increasing the production coupled with
improvement in the ways and means of productivity. This industry has recorded
continuous growth.
The government has a complete control over the production, distribution and price of
cement and this has dampened the growth of the cement industry.
It employs a large number of wor" forces which is over #2777 persons and supports
another 2 la"h persons engaged indirectly. !part from this, it has one of the largest
number of customers from the state administered sectors such as the Indian
.ailways,-oal and 3ower 8ouses.
My ;a2e A$ays N Bey Learnin&s
I Aoined Jaypee !ssociate 4imited on $st JuneJ71 and tried to use both managerial and
technical s"ills to achieve the obAective of the 9ummer Intern L Binancial analysis of Jaypee
!ssociate 4imited and 9tudy on %or"ing capital policy of Jaypee !ssociate 4imited)
This internship was a very good learning e&perience for us. Internship was an e&cellent mi&
of technology and management which helped us to improve my s"ills as a techno-manager.
*y proAect provided me good understanding of wor"ing capital management and funding
of wor"ing capital.
%or"ing with sales and account department helped me to understand
9ale process of cement
Breight cost calculation for !- sheets
:!T
Ciscounting schemes to stoc"iest and retailers
3ayment and bill computation
9ome basic idea about 9!3
This internship has helped me to practically implement my theoretical "nowledge.
%or"ing with Jaypee Group has helped me to "now better about the company, its wor"
culture and friendly atmosphere.
In the internship time I learn a lot about the time management.
This internship was a good learning e&perience not only from professional aspect but also
from personal aspect.
This internship helped us to learn about Indian -ement Industry and -ement manufacture
!ssociation.
Anne'ure
Anne'ure I
Mar2 on app"i*ab"e bo' as G O H
1. Mont1"y in*o%e o( Responent!
a6 4ess than .s 0,777 W X
b6 .s 0,777 L .s $7,777 W X
c6 .s $7,777 L .s $0,ooo W X
d6 .s $0,777 L .s #7,777 W X
e6 .s #7,777 L .s #0,777 W X
f6 .s #0,777 L .s ;7,777 W X
g6 *ore than .s ;7,777 W X
2. Your sa6in& as per*enta&e o( your Mont1"y in*o%e!
a6 4ess than 0 percent W X
b6 =etween 0-$7 percent W X
c6 =etween $7-$0 percent W X
d6 =etween $0-#7 percent W X
e6 =etween #7-#0 percent W X
f6 =etween #0-;7 percent W X
g6 *ore than ;7 percent W X
3. Genera""y you %a2e in6est%ent o( your %oney in!
$. 3ost office saving product W X
#. =an" 9aving product W X
;. 9hare mar"et W X
E. *utual Bund W X
0. Insurance product W X
<. Other W X, 3lease 9pecifyYYYYYYYYYY.
4. I( *o%pany brin& in6est%ent p"an si%i"ar to (inan*ia" institute t1enD $ou" you in6est on t1at!
a6 Ges W X b6 ?o W X
5. I( NoD p"ease *o%%ent $1yP
YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY
YYYYYYYYYYYYY.
6. Ho$ %u*1 s1are you $ou" "i2e to in6est in Jaypee asso*iate (ro% your tota" sa6in&
a. $7 3ercent
b. #7 3ercent
c. ;7 3ercent
d. E7 3ercent
e. 07 3ercent
. Ho$ %u*1 rate o( interest reJuire on your in6est%ent!
a. 9ame as mar"et rate.
b. *ore than $-# percent as mar"et rate
c. *ore than #-; percent as mar"et rate
d. *ore than ;-E percent as mar"et rate
e. *ore than E-0 percent as mar"et rate
Note!
The entire information given by respondent will be highly confidential. This is use for only
academic purpose.
.espondentJs name is not mandatory.
Trainee is a *=! student of Jaypee =usiness 9chool 5#771-#7$76, pursing summer training at
9ales !ccount department of Jaipra"rash !ssociate 4imited 5-ement Civision6, ?oida.
Anne'ure II
EIES;IONNAIRE 3 FOR ACA)EMIC
PROPOSE ONLY
!nne&ure III
#a"an*e S1eet! JAYPEE ASSOCIA;E LIMI;E)
!nne&ure I:
Pro(it , Loss State%ent! JAYPEE ASSOCIA;E LIMI;E)
REFERENCES
!nnual report- Jaypee !ssociate 4imited
BG#77#-7;
BG #77;-7E
BG #77E-70
BG #770-7<
BG #77<-72
BG #772-71
=oo"s
Binancial *anagement- Theory and 3ractice 2
th
+dition, 3rasana -handra
Binancial *anagement- I * 3andey
Knderstanding and analy(ing =alance 9heet- .u(beh J. =odhanwala
8ow to read annual report L .aghu .. 3alat
Investment analysis and portfolio management- 3rasana -handra
Internet
httpN>>www.Ailindia.com>
httpN>>investopedia.com>
httpN>>finance.mapsofworld.com
httpN>>www.moneycontrol.com>companyfacts>Aaipra"ashassociates>
httpN>>en.wi"ipedia.org>
httpN>>www.icra.in>