Journal of Social Commerce

This is a comparative study of Ultratech Cement Ltd and Ambuja Cement Ltd. For the comparison Value Added Statement and Value-Added Ratios are used. For the purpose of calculation of Value-Added Statement and Value-Added Ratios data was taken from the annual reports of both companies from 2017-18 to 2021-22. For the purpose of data analysis T-test is used. Important findings of this study are that 4 ratios out of 5 are showing that there is no significant difference between the performance of both companies.


Introduction
Value Added Statement (VAS) is getting more and more popularity because of its some of the great features as well because of some limitations of the traditional reporting method (Haller et al., 2018). It is not a totally new concept for people. It got a huge popularity in the UK and South Africa back then in [1970][1971][1972][1973][1974][1975][1976][1977][1978][1979][1980]. Since it provides more information and in a different and creative way it become a talk of town. Basically, it shows that how much amount of Value or wealth (in some sense) is generated and applied by the business during a specific period of time (Gorton, 2017). Because of its this features it becomes more popular in recent times but it got more attention of stakeholders. statement of Income statement, which generally shows that how much Value is produced and utilised by an organisation during a particular course of time (Setyowati et al., 2020). Minnis & Sutherland, (2017), suggest that Value Added Statement can take a place of Income statement but it is not true. It is a complimentary to the Income statement not a substitute of it. It is just that Value Added Statement present the financial data in a more influential and creative way so that the full potential use of the financial information can be attained (Lev, 2018). Scalzer et al., (2019), This study was conducted in Brazil on Brazilian electricity producing companies to know the return on the capital as a financial asset. Here interesting fact was that all of the sample companies are earning a good amount of profit from the business. Still somehow, they are not able to sustain in the market. After a particular time period company was in a situation of bankruptcy. So, this study was done to know the reason behind it with the help of Value-Added Statement (VAS) (Singh & Shabani, 2017). At the end of study, it was found out that there is a huge amount of debt is included in the capital structure of all companies, which consequently giving them benefits of leverage but also increasing their financial risk. So, suggestions made by this study was that companies should use a reasonable amount of debt. Silvia & Wangka, (2022), This study was initiated with a view to made a comparison between Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd with the help of Value-Added Statement (VAS). The primary objective of this research was to find out whether there is any significant difference in the principle important factor or not. First the Value-Added Statement is prepared after that value added Ratios are calculated. For the purpose of analysis student-t test is used. Important finding was that there is no such significant difference between these two samples (Delacre et al., 2017). Dyduch, & Krasodomska (2017), This study was conducted on Poland's mining companies with a view to find out Social Responsibility performed by companies. This paper emphasized the fact that companies do uses the resources of society so they should also reimburse the cost with the potential benefits. Now to analyse this function researchers used the Value-Added Statement. It is found out that most of the mining companies are aware about their duties related to Social Responsibility (Rodrigues & Mendes, 2018). Polisetty & Madhuri (2018), The main objective of this study was to find out the value generation and utilisation of it of Volkswagen company. For this purpose, researchers prepared a Value-Added Statement of Volkswagen for the five years period and used correlation to achieve the subsidiary objectives of the research. Important findings of this research were that company can provide or disclose much information through the use of Value-Added Statement and also Value-Added Statement can easily use as a supplement statement to the income statement (Chen et al., 2018). Also, in the context of Volkswagen company it is generating an enough amount of value and also utilising in a proper way Santos et al., (2019), This study was aimed to find out the fact about Value Added Statement that it is really beneficial for the investors or it is just a mere myth. To find out this they taken the samples from Brazilian Stock Exchange and after taking more than 155 samples and 714 observations they had concluded that Value Added Statement is definitely much more expressive in terms of financial information disclosure to its users than income statement (Dichev, 2017). So, it can be reasonably said that it is providing much more information to investors.

Objectives of the study
To prepare Value Added Statement (VAS) and Calculate the Gross Value Added (GVA) and Net Value Added (NVA) of Ultratech Cement Ltd and Ambuja Cement Ltd. To compare and analyse the changes in Value Added Ratios (VAR) of Ultratech Cement Ltd and Ambuja Cement Ltd.

Sample Selection
The samples are selected with the help of Non -Probability / Judgemental sampling technique. All the companies, which are manufacturing any type of cement is population of the study. From the population of cement industry, TWO major cement manufacturing companies are selected on the basis of their market share.

Sample Profile
Ultratech Cement Ltd is an Indian originated cement manufacturing company founded in 1983. Aditya Birla group of companies has its ownership stake. So Ultratech Cement Ltd is a subsidiary of Aditya Birla group of companies. Ultratech Cement Ltd is manufacturing grey cement as well RMCs (Ready Mix Concrete). The headquarter of Ultratech Cement Ltd is in Mumbai, Maharashtra, India. Currently It is the market leader of Indian Cement Industry.
Ambuja Cement Ltd is also an Indian origin cement manufacturing company. It was founded in 1983. Formerly it was known as Gujarat Ambuja Cement Ltd. Recently Ambuja Cement Ltd is takeover by Adani Group of companies. So now Adani Group is the parent company. Currently Ambuja Cement Ltd is on second position to the Ultratech Cement Ltd, a Market leader of Indian Cement industry.

Period of the Study
The period of this study is from 2017-18 to 2021-22.

Hypotheses of the Study
H0: There is no significant difference in the NVA to Sales ratio of Ultratech Cement Ltd and Ambuja Cement Ltd during the study period.
H1: There is a significant difference in the NVA to Sales ratio of Ultratech Cement Ltd and Ambuja Cement Ltd during the study period.
H0: There is no significant difference in the contribution to employees to NVA ratio of Ultratech Cement Ltd and Ambuja Cement Ltd during the study period.
H1: There is a significant difference in contribution to employees to NVA ratio of Ultratech Cement Ltd and Ambuja Cement Ltd during the study period.
H0: There is no significant difference in contribution to government to NVA ratio of Ultratech Cement Ltd and Ambuja Cement Ltd during the study period.
H1: There is a significant difference in contribution to government to NVA ratio of Ultratech Cement Ltd and Ambuja Cement Ltd during the study period.
H0: There is no significant difference in contribution to contribution to providers of capital to NVA ratio of Ultratech Cement Ltd and Ambuja Cement Ltd during the study period.
H1: There is a significant difference in contribution to providers of capital to NVA ratio of Ultratech Cement Ltd and Ambuja Cement Ltd during the study period.
H0: There is no significant difference in Contribution to Owners to NVA of Ultratech Cement Ltd and Ambuja Cement Ltd during the study period.
H1: There is a significant difference in Contribution to Owners to NVA of Ultratech Cement Ltd and Ambuja Cement Ltd during the study period.

Data Collection
In this study all the data are taken from the annual reports of the Ultratech Cement Ltd and Ambuja Cement Ltd respectively for the 5 years starting from 2017-18 to 2021-22

Data Analysis
For the purpose of analysis of data and fulfilment of the objectives this study uses two tools. First is Value Added Ratios (VAR) and second is Student-t test or t-test.

Value Added Ratios
Value Added Ratios are the accounting ratios which shows the relationship between the various elements of the Value-Added Statement. These ratios are very much helpful for the analysis of Value-Added Statement. This ratio can be performed as a tailor-made (pre-prepared) or one can also frame the Value-Added Ratios as per the need of the study.

T-test
T-test is a statistical test to measure the significance between two samples. T-test has many variants which can be used by as per the requirement of the study. Here in this study a two tailed T-test is performed to find out that if there are any significant difference is existed between both samples

Conclusion
The findings of this research indicate that there is not a statistically significant difference between Ultratech Cement Ltd. and Ambuja Cement Ltd. during the time period covered by the study in terms of the ratio of NVA to Sales, the ratio of Contribution to Employees to NVA, the ratio of Contribution to Government to NVA, and the ratio of Contribution to Owners to NVA. This is due to the fact that the null hypothesis for each of these ratios was accepted. On the other hand, due to the fact that the null hypothesis was not found to be true, one can assert that there is a substantial disparity between the contributions made by Ultratech Cement Ltd. and those made by Ambuja Cement Ltd. during the course of the research in terms of the ratio of NVA to providers of capital.
Both of the businesses are devoting a significant portion of their overall worth to the benefit of their workers, and as a result, the management of each organization has to make certain that appropriate benefits will be maintained for the business. Ambuja Cement Ltd. has a bad tax management strategy, and in order for the firm to have a better future, they will need to improve it. In order to take advantage of leverage, Ambuja Cement Ltd. might augment its existing capital structure with additional loan capital. The stockholders of Ultratech Cement Ltd. deserve a greater return on their investment.