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THE BRIEF HISTORY OF THE
COMPANY
1946:
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The company was incorporated on 21st February at Chennai. The company runs
two cement factories on at Sankaranagar in the Nellai kattabomman district and the other
at Sankaridurg in the Salem District of Tamilnadu state. It also runs a foundry at
Nandambakkam near Chennai City.
1956:
160000 Right Equity Shares issued at par in the proportion 4 shares for every
175Rs Paid-up Equity Capital.
1957:
Deferred Shares converted into equity shares of Rs.5 each in proportion of 1:1.
Dividend rate of Preference Shares altered to 7.5%.
1958:
In August, Equity Shares of Rs.25 each in proportion subdivided into 729650 Rights
Equity Shares then issued in proportion of 1:3.
1959:
In December, 3500 preference Shares and 30350 Equity Shares Alloted to Essen
Private Ltd., and managing agents. At the same time, 40000 No of Equity Shares allotted
to the directors of the Managing Agents in November 1960 are 1500000 Right Equity
Shares issued at par in proportion of 1:2.
1961:
25, 00,000 Right Equity Shares issued at par in the proportion of 5:9.
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1965:
In October, the company acquired foundry machinery and other fixed assets from
Microtec Casting Pvt.Ltd.
1969:
Issued 29, 00,000 Bonus Equity Shares in the proportion of 2:5.
1984:
33,350of 71/2 % of Cumulative Preference Shares of Rs.100 Each were converted
into 131/2% secured redeemable Non-Convertible Debentures of Rs.100 Each from 1st
April.
1985:
A crushing cum screening plant was installed at sankarnagar. The quarries at the
sankari factory were modernized and the third captive DG set was installed at
Sankarnagar plant.
In order to convert the Sankarnagar plant to a more fuel efficient process, the
company accepted the proposal of Blue Circle Industries P.I.C from UK, for setting up a
3000 Tonnes per day precalciner dry process kiln adopting the latest technology.
On the 20th February the company allotted 33,350 of 15% Secured redeemable
non-convertible debentures of Rs.100 each in conversion of 33,350 of 71/2% cumulative
preference shares of Rs.100 each. The debentures are redeemable on or after 7 years but
not later than 10 years from the date of allotment.
Also, 600,000 of 15% secured redeemable non-convertible debentures of Rs.100
each were privately placed with LIC, GIC and its subsidiaries to be redeemed in 5 equal
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installments commencing from the end of the 5th year and ending with the 9th year from the
date of allotment at a premium of 5% at the end of the 7th year.
1000,000 of 20% non-convertible redeemable debentures of Rs.100 each were
privately placed with LIC, UTI and GIC.
1986:
Larsen and Turbo were appointed as the Indian Consultant.
The company considered various technical options for converting the wet process
factory at Sankaridurg to Dry process to avoid losses arising out of periodic rise in local
prices.
1987:
Dry process kiln with preheater was erected for improving the economic viability of
the foundry. It was proposed to delink the division from the company by transferring it to a
subsidiary.
1988:
On 1st November, ICF Foundaries Ltd. was incorporated to delink the foundry from
the cement division.
1989:
In the last quarter of the year as a measure of forward integration, the company
entered the business of real estate and property development.
1990:
The company was granted a license by the ship acquisition licensing committee for
purchase of 4 dry bulk cargo vessels.
4
On 29th November, after obtaining necessary approvals, the company took
possession of the cement division of Coromandal Fertilizers Ltd., in Chilmakur Village,
Cuddapah district, Andra Pradesh.
The company’s overall installed capacity increased to 2.6 Million Tonnes
representing 12.5% of total capacity in South India and 34% of the total capacity in
Tamilnadu.
In order to part finance the modernization programme at sankarnagar the company
offered during February/March 10,29,000 of 12.5% secured fully convertible debentures of
Rs.125 each out of the total issue of 9,80,000 debentures were offered to the equity share
holders of the company in the proportion of 1 Debenture for every 5 Equity Shares held
and 49000 debentures were offered to the employees of the company (Including the
retention of over subscription, a total of 11,71,660 debentures were allotted).
The conversion of the debenture was to take place at two stages. In part I – 58,
58,300 No. of equity shares were allotted and in part II – 52, 27,848, No. of equity shares
were allotted. The holders of 622 debentures opted for this conversion. The holders opted
for the original terms of conversion. Accordingly, 2777 No. of equity shares were allotted
on 21.10.1992.
1991:
Due to fire accident in September, two of the three furnaces were damaged
affecting production for more than three months.
The company acquired two bulk cargo carriers with 53,644 DWT and 43,300 DWT
Tonnes capacity and named as ICL Rajarajan and ICL Jayamkondan respectively.
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The company acquired controlling interest in the Industrial Chemicals and
Monomers, Ltd. (ICML) which runs a calcium carbide unit adjacent to the company’s
sankaranagar plant.
1992:
In accordance with the approval of shareholders ICL foundries Ltd. the wholly
owned subsidiary of the company, took over the supervision of the operations of the
foundry division with effect from 1st July.
The company acquired two more bulk cargo carriers. The company handed back
the time-chartered vessels to the owners.
The performance of the shipping division was affected by the unprecedented delays
at various ports in India for the discharge of fertilizers cargo in the wake of change in the
Government policy on the fertilizer Industry.
During April, the company issued 31,97,230 rights equity shares of Rs.10 each at a
premium of Rs.40 per share in proportion of 1:5 and additional 4,79,584 shares were
allotted to retain over subscription.
The company issued 14% cumulative redeemable preference shares of Rs.100
each aggregating to Rs.6.25 Crores to Financial Institutions. These shares will be
redeemed at a premium of 5% in 3 equal annual installments on the expiry of 8 th, 9th and
10th year from the date of allotment.
1993:
The company acquired a vessel named ICL VIKRAMA. The shipping division
chartered 4 foreign flag vessels for the purpose of carrying coal from Australia to India.
During June, the company issued 49, 62,372 rights equity shares of Rs.10 each at a
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premium of Rs.60 per shares in the proportion of 1:4 all were taken up except 137 equity
shares. The allotment of which was kept in abeyance because of court orders.
1994:
An up gradation/utilization of equipment programme was undertaken and its
capacity was also being upgraded to 1.1 Million T.P.A.
The shipping division acquired its 4th bulk carrier M.V. ICL Partibhan of 55, 882
DWT.
Thought freight rates were higher during the year, the shipping division could not
accrue the full benefit as two of its ships were drydocking during January/March 1995,
leading to a loss of 60 operating days.
On 18th October, the company offered global depository receipts (GDRS) for US
Million at the price of US 5 per GDR/share involving issue of 58, 57,987 GDRS/Shares.
One share will be issued respect of one GDR.
ICL Foundries Ltd., Industrial Chemicals and Monomers Ltd. and ICL Financial
services and ICL International Ltd. are all subsidiaries of the company.
1995:
Production and sales of the foundry division was affected due to unscheduled load
shedding/power tripping.
The company acquired its fifth bulk carrier, M.V. ICL Raja Mahendra 47893 DWT. 8
Voyages were also performed through chartered vessels.
15,00,000 No.of Equity Shares of 10 Each (Premium of Rs.205) for share allotted
on Preferential basis against warrants 321, 68,291 bonus shares allotted in proportion of
1:1.
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1996:
The company undertook to set up a new energy efficient cement mill at its
sankarnagar plant.
During the year the shipping division had to brave rough weather with freight rates
continually falling and freightment contracts being hard to come by.
1997:
As a part of its ongoing diversification activites the Rs.900 Crore India Cements Ltd.
(ICL) is setting up a sugar manufacturing facility, ICL Sugars Ltd. in Mandya District of
Karnataka.
India Cements Ltd. through its group companies ICL Securities Ltd. (ICLS) and ICL
Financial Services Ltd. (ICLFS) had acquired about 40 percent of the paid-up capital of
Aruna Sugars Finance Ltd. from the Aruna Sugars and Enterprises Ltd. (ASEL) for a
consideration of Rs.6.08 Crores.
The Chennai based India Cements Limited. (ICL) is set to acquire Cement
Corporation of India’s (CCI) yerraguntla (Andhra Pradesh) unit with CCI. Recommending
the name of the former to the Industry ministry. ICL has recently diversified into sugar by
setting up a 2500 TCD sugar factory at Mandya in Karnataka.
The cement major India Cements Ltd. (ICL) has floated a new venture, styled
coromandel Electric Company Ltd. to set up a collective captive power plant.
India Cement has emerged as a winner in the takeover race after Gujarat Ambuja
Cement Ltd. the only other company in the race, backed out at the last stage alleging foul
play in the take-over process.
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India Cements Ltd. (ICL) has set its sights on Raasi Cements. It is preparing to
mount a take-over bid, which if successful would give the madras based ICL, Country’s
Second largest Cement capacity after ACC.
ICL signed a Memorandum of Understanding (MOU) with CCI on December 10 th,
and completed the take-over formalities on January 21st.
1998:
ICL also commissioned its new 0.9 Million TPA plant at Dalavoi in Tamilnadu in the
later part of FY-97.
After the Successful take-over of Raasi Cements, India Cements has initiated the
process of margining the former with itself having reconstituted the entire board of Raasi.
The India Cements Ltd. (ICL), with annual capacity of seven million tonnes per
annum, has launched its premium brand Coromandal King Superior 53 Grade Cement.
1999:
The India Cements Share Price has been rising sharply in the past fornight by
about 26% to close at Rs.38 on March 31st.
An agreement was inked with BOBL in November last and all formalities were
completed.
2000:
The company in a bid to further reinforce its leadership position in the region, has
entered into a marketing tie-up with Andhra Pradesh (AP) based 0.6 Million tonnes
panyam cement.
The company has entered into an agreement with Panyam Cement and Mineral
Industries Ltd. for distribution and Marketing of cement.
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Chennai based Indian Cements is learnt to have held talks, or is in the process of
holding talks, with at least two Multinational Cement Companies – Blue Circle and Cemex
to set up joint venture Company.
The cement major India Cements has launched a comprehensive portal on home
making (Homztoday.com)
2001:
India cements is finalizing plans to reduce its manpower strength by around 700
during the current financial year.
2002:
Board decided to sell the 39% Equity shares of Sri Vishnu Cements and has signed
a share purchase agreement with Zuari Cement Ltd.
Company enters into an agreement with Citibank. N.A.
IDBI appoints Mr.J.Jayaraman as the Director on the board.
Negotiates with Financial Institutions led by IDBI for its Debt restructuring.
The Board of India Cements scraps the resolution to pay 11.5% preference
dividend posts a net loss of Rs.910.9 Million as compared to net loss of Rs.190.5 Million
for the same period last year.
Files a corporate debt-revamp plan to the financial institutions.
2003:
The board co-opted Mr.N.D.Pinge as the Nominee Director in place of
MR.N.Biswas, who ceased to be the director consequent to withdrawal of Nomination by
ICICI Bank Ltd. It Is restructuring its debt under corporate debt restructuring systems and
the details of the restructuring package which includes VRS, Sale of Assets, restructuring
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of debt including working capital facilities. The restructuring proposals provides for various
exit options for secured and unsecured lenders with different yield and maturity. The
package is subjected to annual review based on which it is modified.
Appoints Mr.M.V.Mohammed as the Director on the Board of the company.
2004:
The company through its special purpose vehicle M/s.Coromandel Electric Co.Ltd.
has commissioned a (Gas Based) captive power plant at ramanathapuram for a capacity
of 17.4 MW and the same has started supplying power from the month of Novemeber
2004.
2005:
The company has successfully completed an equity issue in the international
market during October 2005 by issuing 25, 613,796 global depositary shares (GDSS) at
USD 4.3226 per GDS (Each GDS representing 2 underlying equity shares of Rs.10 each)
and raised an amount of Rs.497 Crores including a premium of Rs.446 Crores.
2006:
India Cements signs MOU Government of Himachal Pradesh Sri.T.Dulip Singh one
of the Director on the Board of the Directors expired on November 19, 2006.
The company has issued unsecured zero coupon convertible bonds due 2011
(FCCBS) for US Million to investors outside India at an Initial Conversion Price of
Rs.305.57 per share.
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2007:
India Cements Ltd. has co-opted Mr.Ashok Shah, Zonal Manager (New Delhi), Life
Insurance Corporation of India in the place of Mr. P.N.Jambunathan.
India Cements Ltd. has co-opted Mr.K.Subramanian representing housing and
Urban Development Corporation Ltd. (HUDCO) as an additional director of the Company.
The Hon’ble High Court of Judicature at Madras vide its order dated 25 th July 2007
sanctioned the scheme of amalgamation of Visaka Cement Industry Ltd. with the India
Cements Ltd.
The Company has converted the Sankari plant from wet process to dry process and
commissioned the plant.
The company has privately placed 2, 07, 89,000 Equity Shares at a price of
Rs.285/- per share (Including premium of Rs.275/- per share) by way of qualified
Institutional placement in December 2007.
2008:
The company has revived its shipping business with the purchase of two ships (Dry
bulk carriers) with a total capacity of 79843 DWT. The company has successfully bid for
the Chennai franchise of the DLF-IPL 20-20 Cricket Tournament “Chennai Super Kings”.
The company has completed and commenced commercial production of One Million
Tonne grinding plant at Chennai.
2009:
The company has completed and commenced commercial production of the Million
Tonne grinding plant at Parli (Maharashtra).
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The company’s subsidiary namely Trishul Concrete Products Limited has
completed and commenced commercial production of one lakh W.M ready mix concrete
plant at Hyderabad (Andra Pradesh).
The IT Line of 1.2MT at Malkapur was commenced operations from March 2009.
The upgraded capacity of kiln I to 3000 TPD (1700 TPD) at Vishnupuram started functioning from April 2009.
2010:
The Corporate office of the company was shifted in February, 2010 to its own building "Coromandel Towers" at 93, Santhome High Road, Karpagam Avenue, MRC Nagar, Chennai 600 028.
The Company privately placed in March, 2010 2,45,94,000 equity shares at a price of Rs.120.20 per share (including premium of Rs.110.20 per share) to Qualified Institutional Buyers.
The Company’s cricket franchise "Chennai Super Kings" has won IPL III Trophy in April 2010. The Company invested 99.99% of the share capital of Coromandel Minerals Pte. Limited (CMPL), Singapore, making CMPL a subsidiary effective from 1st June 2010.
The Chilamakur plant with capacity upgraded to 4500 Tonnes per day started functioning from June 2010.
The Company’s cricket franchise "Chennai Super Kings" won Champions League T20 tournament on 26th September 2010.
2011:
Trinetra Cement Limited (formerly Indo Zinc Limited), the company’s subsidiary, has commenced commercial production of its 1.5 million tonnes cement plant in Banswara District, Rajasthan, in January 2011.
IS/ISO 9001:2008 Certification for Dalavoi Plant in February 2011.
The Company redeemed fully all the outstanding Foreign Currency Convertible Bonds for US$ 75 Million on 12th May 2011, the scheduled date.
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The Company’s cricket franchise "Chennai Super Kings" won IPL IV Trophy on 28th May 2011.
The Birth Centenary of Sri.T.S.Narayanaswami, one of the Founders of the Company, was celebrated on 11th November, 2011.
IS/ISO 9001:2008 Certification for Sankari Plant in November 2011.
2012:
The 48 MW Captive Power Plant at Sankarnagar was commissioned in January 2012.
IS/ISO 9001:2008 Certification for Yerraguntla Plant in April 2012.
The Company had acquired its third bulk carrier of 52489 DWT in August 2012.
PRODUCTS:
Coromandel Super Power, Sankar Super Power and Raasi Super Power are the
Premium Blended Cements from the INDIA CEMENTS LIMITED. It is produced by inter-
grinding of OPC clinker along with gypsum and mineral admixtures. Dedicated to the end
user after passing through stringent test at R&D Laboratory, It ensures durable structures
that cast for generations.
SUBSIDIARIES:
Industrial Chemical and Monomers Limited. (ICML)
ICL Securities Limited. (ICLSL)
ICL International Limited. (ICL Int. Ltd.)
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Trishul Concrete Products Limited. (TCPL)
PT Coromandel Mineral Resources (CMR)
Trinetra Cement Limited (Formerly Indo Zinc limited. (TCL)
Coromandel Minerals Private Limited, Singapore (CMPL)
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MANAGEMENT AND ADMINISTRATION
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INTRODUCTION:
Management and Administration of the company are considered to be highly responsible
and burden some tasks involving risk. Further more the management is answerable to the
share holders, creditors and other interested parties. Because the capital contributed by
them has to be used properly only for this reason. The companies act contain the
appointment, powers and authorities of several managerial personal of the company.
MANAGEMENT:
The India Cements Limited is a professionally managed company headed by
Mr.N.Srinivasan, Vice Chairman and Managing Director. The day to day affairs of the
company are managed by him assisted by key personnel in each functional area. The
Board of Directors ultimately responsible for the management of the affairs of the
company.
BOARD OF DIRECTORS
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Shri.N.Srinivasan - Vice Chairman and Managing Director
Mrs.Chitra Srinivasan - Director
Ms.Rupa Gurunath - Whole Time Director
Shri.B.S.Adityan - Director
Shri.R.K.Das - Director
Shri.N.Srinivasan - Director
Shri.N.R.Krishnan - Director
Shri.A.Sankara Krishnan - Director
Shri.Arun Datta - Director
Shri.V.Manickam - Representing LIC of India
Shri.K.P.Nair - Nominee of IDBI Bank Ltd
Shri.K.Subramanian - Representing Housing and urban
Development Corporation Limited.
AUDITORS - Mrs.Brahmayya & Co.
Mrs.P.S.Subramania Iyer & Co.
Chartered Accountants Chennai.
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MEMORANDUM OF ASSOCIATION
The “Memorandum of Association” is the first step in the formation of the company.
It is a document of great importance in relation to a preparation of the company. It
combines a fundamental conditions upon which alone the company is allowed to be
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incorporated. It also shows the path for the external affairs of the company with the
outsiders.
The Memorandum of Association of ICL contains the following:
NAME CLAUSE:
The Name of the Company “India Cements Limited.”
REGISTERED CLAUSE:
The Registered Office of the Company is
“Dhun Building, 827,
Annasalai,
Chennai-600002.”
OBJECT CLAUSE:
To Produce and Manufacture, refine, prepare, process, import, export, sell and
general dealings in cement, part land cement and limestone and by-products
thereof.
To produce, take a lease or acquire the undertaking business and property or any
part there of any company, Largest Builders, Contractors, Engineers, and Export
and to Buy or Sell.
To transport and to carry on all kinds of Agency business.
To amalgamate with any company or companies having object altogether of the
parts similarly to the company.
To produce, Manufacture, process, treat, purchase, or sell or otherwise deal with
either the principle or the principles or the agents solely or the partnership with
other cement or alumia cements, lime, plaster of paris.
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To search for over mines, grant license for mining in or over any land which may be
owned by the company and to lease out such land for buildings and other use.
To use, cultivate, work, manage, improve carely and develop and turn to accopunt
the understanding lands, mines, rights, priveleges and absent of the company.
To make advance up on or for the purchase of materials, goods, machinery stores
and other articles required for the purpose of the company.
To work mines or quarries and to protect for search for, search find, win get work,
rush, smelt, manufacture, or otherwise deal with limestone clay materials and
generally to carry on the business of mining in all its branches.
Though there are many objects provided by the company, the above specified are
the important objects of the company.
LIABILITY CLAUSE:
The Liability clause specified that the liabilities of the company are limited.
CAPITAL CLAUSE:
The Capital clause in the Memorandum describes the Capital Structure of the
Company. The Share Capital of the Company is registered “Rs.2, 25, 00, 00, 000”
capable of Increase or Decrease in accordance with Company Articles and Legislative
Provisions for the time-being in force dividend into 75, 00, 000 redeemable cumulative
preference share of Rs. 15, 00, 000 equity shares of Rs. 10 each.
ASSOCIATION CLAUSE:
The several persons whose names and addresses are subscribed are desirous of
being formed into a company in pursuance of this memorandum and articles agree to
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take the number of shares in the capital of the company set opposite to their respective
names.
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ARTICLES OF ASSOCIATION
23
The articles are the other important fundamental documents. They are only the
subordinate to and controlled by the Memorandum. Articles are the rules and
regulations and by-laws for internal management of the company.
Articles generally means
“The Articles of Association of a Company as originally framed or altered from time
in pursuance of this art”.
The following are the contents of the Articles of Association
Capital
Lien on Shares
Calls on Shares
Transfer of Shares
Transmission of Shares
Forfeiture of Shares
Conversion of Shares into stock
Share Warrant
Alteration of Capital
Votes of Members
Proxies
Board of Directors
Retirement, Removal of Directors
Secretary
Seal
Management Agent
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Dividends and Reserves
Capitalization of Profits
Audit
Service of Documents and Notices
Authentications of Documents
Winding Up
Indemnity and Responsibility
Secrecy
Annual return
Alteration and Reduction of Share Capital
Accounts
Variation Rights.
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ORGANIZATION STRUCTURE
ORGANIZATION CHART
26
CHAIRMAN
VICE PRESIDENT
CHAIRMAN
VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT (FINANCE)
GENERAL GENERAL GENERAL GENERAL GENERALSECRETARY SECRETARY MANAGER MANAGER
(I.A) (OPERATIONS) (OPERATIONS)
GENERAL MANAGER DEPUTY SENIOR DEPUTY(F.C.A) GENERAL MANAGER
MANAGER
DEPUTY GENERAL SENIOR SENIOR MANAGER
MANAGER (F.C.A) ASSISTANT ASSISTANT MANAGER
SENIOR MANAGER OFFICERS OFFICERS
ASSISTANT MANAGER
OFFICERS
FLOW OF AUTHORITY
27CHAIRMAN
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PRESIDENT
VICE PRESIDENT
COMPANY SECRETARY
GENERAL MANAGER
DY.GENERAL MANAGER
SENIOR MANAGER
ASSISTANT MANAGER
OFFICERS
FUNCTIONS OF
DEPARTMENTS
FUNCTIONS OF DEPARTMENTS:
Purchase Departments:
The purchase procedure outline in this manual aims to fulfill the following objectives:
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To buy competitively and wisely, authorize supplies to decide specifications from
approved reliable sources at the available reasonable prices within the time
schedule to support production plans and other requirements.
To ensure the fair and open purchase practices are followed and healthy and
good relationship develops with suppliers to faster the commercial interest of
HAL in the local, National and International Market.
To ensure timely formulation and commitment of Purchase budget including
foreign exchange requirements.
To serve as information centre on materials knowledge-prices, sources of
supply, specifications etc. to all other departments.
To ensure that investments made or inventory is at an optimum level. Training of
purchase personnel in the latest techniques of materials management.
To keep management appraised of the likely shortfalls in purchase department
performance by reducing appropriate supporting systems with a view to seek
management interventions in time.
Purchase Funtions:
Economical therefore about 55% cement is carried by the railways. There is also a
problem of inadequate availability of wagons especially on the western railways and south
eastern railways. Under this scenario, there is an need to encourage transportation
through sea which is not only economical but also reduces losses in transit. Today 70% of
the cement movement worldwide is by sea compared to 1% by India.
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PURCHASE DEPARTMENT STRUCTURE
TABLE SHOWING OF PAST SIX YEARS
(Rs.in Crore)
YEARS RAW MATERIALS2005 128.60
31
PURCHASE DEPARTMENT
EXECUTIVE DIRECTOR
CHIEF MANAGER PURCHASE
MANAGER
OFFICERS
2006 189.88
2007 242.21
2008 312.95
2009 242.47
2010 331.29
INTERPRETATION:
The result of Current Ratio for the 2008-2009 is 312.95, 2009-2010 is 242.47, 2010
is 331.29 times. The result shows the current ration in 2010 has increased when
compared to other preceding years.
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PRODUCTION DEPARTMENT
PRODUCTION OF CEMENT:
Manufacture of Cement comprises of four stages viz.
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Extraction of limestone from mines, blending or ground limestone, clay or Bauxite
and Iron ore or Laterite in right proportion and centering in lotary kilns at a high
temperature of 14000 OC to 15000 OC from Clinker.
Grinding of clinker with gypsum tofrom cement. Storing in silos testing and dispatch
from the final process of manufacturing.
Varities of Cement:
The varities of cements manufactured by India Cements Limited are:
Ordinary Portland cement (OPC-53,43,33)
Portland Pozzolana Cement (PPC)
Sulphate Resistance Cement (SRC)
Cement Process:
Cement acts as bonding agents, holding particles of aggregate together to form
concrete. Cement production is highly energy intensive and involves the chemicals of
Calcium carbonate (Limestone), Silica, Alumina, Iron ore and small amounts of other
materials. Cement is produced by burning limestone to make clinker and the clinker is
blended with additives and then finally ground to produce different cement types. Desired
physical and chemical properties cement can be obtained by changing the percentages of
the basic chemicals components (CaO, Al2o3, Fe203, Mgo, and So3 etc.)
Most cement produced is Portland cement: other cement types include white,
masonry, and slag, aluminous and regulated set cement. Cement production involves
quarrying and preparing the raw materials, producing clinker through pyroprocessing the
materials in huge rotary kilns at high tempratures and grinding the resulting product into
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fine powder. The following detailed description is borrowed from the world energy council
(1995).
Raw Materials Preparation:
Raw Materials preparation involves primary and secondary crushing of the quarry
materials, drying the materials (for use in the dry process) are undertaking further saw
grinding through either wet or dry processes and blending the materials. The energy
consumption in raw materials preparation accounts for a small fractions of overall primary
energy consumption (less than 50%) although it represents a large of the electricity
consumption.
Clinker Production:
Clinker Production is the most energy- intensive step, accounting for about 80% of
the energy used in cement production in the United States. Produced by burning the
mixture of materials, Mainly limestone (CaCO3), Silicon oxides (S1O2), Aluminum, and Iron
oxides, Clinker is made by one of two production process: wet or dry, these terms refer to
the grinding process. Although other configurations and mixed forms (Semi-wet, Semi-Dry)
exists for both type.
In the wet process, the crushed and proportion materials are grounded with water
mixed and fed into the kiln in the form of slurry. In the dry process the raw materials are
grounded mixed and fed into the kiln in their dry state. The choice among different process
is dictated by the characteristic and availability of raw materials. For example a wet
process maybe necessary for raw materials with high moisture content (greater than 15%)
or for certain chalks and alloys that can best be processed as a slurry. However the dry
process in the more modern and energy efficient configuration. Once the materials are
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grounded they are fed into kiln for burning. In modern kilns, the raw materials must be pre
heated (In 4-5 stages) using the waste heat of the kiln or it is pre-calcined. During the
burning or pyroprocessing, the water is first incorporated after which the chemical
composition is changed, and partial melt is produced. The solid material and the partial
melt is combined into small marble sized pellets called clinker.
Finish Grinding:
Cooled Clinker is grounded in tube or roller mills and blended by simultaneous grinding
and mixing with additives (Example gypsum, anhydrite, pozzolana, fly ash or blast furnace
slags) to produce the cement. Drying of the additives maybe needed at this stage.
SCHEMATIC DIAGRAM OF MANUFACTURING OF CEMENT
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CALCAREOUS MATERIAL (LIMESTONE FROM MINES)
ARGILLACEOUS MATERIAL (CLAY BAUXITE)
PRODUCTION DEPARTMENT STRUCTURE
37
RIGHT PROPORTION
KLIN 14000 DEGREE CELSIUS TO 1500 DEGREE CELSIUS
CLINKER
GRINDING WITH GYPSUM
CEMENT
CHEMICAL AND PHYSICAL TEST
DESPATCH
TABLE SHOWING PRODUCTION FOR PAST SIX YEARS
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UNIT HEAD
FACTORY MANAGER
TECHNICAL MANAGER
PRODUCTION MANAGER
SUPERVISOR
JUNIOR OFFICER
STAFF
DISTRIBUTION MANAGER
SUPERVISOR
JUNIOR OFFICER
STAFF
YEARS PRODUCTION (in Tonnes)2005 54.09
2006 66.92
2007 84.24
2008 92.34
2009 91.11
2010 93.50
BAR DIAGRAM SHOWING PRODUCTION FOR PAST SIX YEARS
39
PERSONNEL DEPARTMENT
PERSONNEL INDUSTRIAL:
40
In terms of the provisions of section 217 (2A) of the companies act, 1956, real with
the companies (particulars of the employees) Rules, 1975, as amended the names and
other particulars of the employees are to be annexed to the Directors Report.
However, as per Provision of Section 219(1)(b)(IV) of the said act, the annexure
report excluding the aforesaid information is being sent to all members of the company
and others entitled thereto.
The board of Directors lays down the policies relation to the recruitment, training,
transfer and promotion of the employees. The personnel department has to implement
these policies. The main function of the department is recruitment of workers, training
them and placement in suitable jobs.
In India Cements Limited, this department deals with the recruitment, promotion,
disciplinary action, etc which is the essential components of any organization.
The duties of the Personnel Department in India Cements Limited are:
Planning
Job Specifications
Advertisement and Selection
Placement and Promotions
Discharge, Retirement
Human Relations and Office Supervision
Recruitment and Training
Job Evaluation
Merit Rating
Health safety and Welfare Activity
41
Housing to the Employees
Providing free education to the Employees Children.
Personnel Department is primarily concerned with the human resources of the
enterprises and includes development, monetary and non-monetary welfare of the
personnel for the purpose of contributing towards the accomplishments of the
organizations.
The company continues to place importance on training at all levels the total
number of employees at the end of the financial year.
ORGANIZATION STRUCTURE OF PERSONNEL DEPARTMENT
42
43
PERSONNEL DEPARTMENT
EXECUTIVE DIRECTOR
PERSONNEL MANAGER
OFFICER
ASSISTANT
FINANCE DEPARTMENT
44
The Finance Department Is a backbone of any organization. In short, it deals with
the accounts department and deals with:
Main Cash Voucher
Petty Cash Voucher
Bank Credit Advices
Bank Credit Advisors
Cheques Issued
Cheques received
Cash received
Cash receipts
Supply bill details
Invoice Details
Bank Deposit Challans
All the above transactions are carried on would immediately be taken to accounts
department, which will be divided into two sections namely:
Wage Section
Finance Section
India Cements Limited is a large company and has four factories, mainly engage in the
manufacture of cements. Each factory has its own cost/profit centre and accounting is
done factory wise.
45
CAPITAL STRUCTURE FOR THE YEAR 2009
PARTICULARS 2009 (Rs.in Lakhs) %EQUITY SHARE 28243.05 7.70
RESERVES &
SURPLUS
334895.93 91.35
DEBENTURES 2291.54 0.62
LOANS 1172.45 0.31
TOTAL 366602.97 100.00
46
CAPITAL STRUCTURE FOR THE YEAR 2010
PARTICULARS 2010 (Rs.in Lakhs) %EQUITY SHARE 30717.45 6.06
RESERVES &
SURPLUS
382864.95 75.59
DEBENTURES 60618.14 11.96
LOANS 32308.04 6.37
TOTAL 506508.58 100.00
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TABLE SHOWING PROFIT AND LOSS ACCOUNT
YEAR PROFIT (Rs. In Lakhs)2001 5115
2002 -757
2003 -30723
2004 -11273
2005 458
2006 4998
2007 49196
2008 84464
2009 64830
2010 53132
48
BAR DIAGRAM SHOWING PROFIT OR LOSS FOR PAST TEN YEARS
TREND ANALYSIS
49
COMPARITIVE BALANCE SHEET
PARTICULARS 2009 (in
Lakhs)
2010(in Lakhs) INCREASE /(DECREASE)
LIABILITIES
Capital 28243.05 30717.45 2474.40
Reserves& Surplus 338495.93 382864.95 47696.02
Secured Loans 103624.99 86664.36 16960.63
Unsecured Loans 95177.97 126608.68 1584.30
Deferred tax Liability 27406.24 28990.54 828569.29
Total 589348.18 655845.98
ASSETS
Fixed Assets 471229.29 462150.64 9078.65
Investments 15897.33 31397.33 15500.00
Loans & Tax Assets 99021.21 160234.48 61213.27
Deferred Assets 1845.28 2063.53 218.25
Deferred Revenue Tax 1355.12 0.00 1355.12
TOTAL 589348.23 655845.98
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FINANCIAL PERFORMANCE (2009-2010)
(Rs.in crores)
Net Sales / Income From Operation 3687.27
Other Income 120.99
Total Income 3808.26
Total Expenditure 2944.75
Operating Profit 863.51
Operating Margin 22.67%
Interest And Finance Charges 142.64
Gross Profit After Interest 720.87
Depreciation 233.12
Profit Before Tax 487.75
Foreign Exchange Fluctuation 43.57
Profit Before Tax 531.32
Fringe Benefit Tax -
Deferred Tax Liability 13.66
Taxation Provision Net 163.32
Profit After Tax 354.34
Return On Capital Employed 16.52%
51
RATIO ANALYSIS
52
RATIO
Ratio is mathematical relationship between two items express in quantitative arithmetically
with the denominators.
Ratio Analysis:
Ratio analysis is an old technique of financial analysis and interpretation of financial
statements with the help of ratios worked out by dividing one number by another number.
Accounting rations measures indicates efficiency of an enterprise in all aspects such as
forecasting managerial control, measuring contials, measuring efficiency and inter-film
comparisons, etc.
The ratios are calculated in the following steps:
Profitability Ratio
Turn Over Ratio
Financial/Solvency Ratio
The ratios are also classified as follows:
Classifications by statements
Classifications by user
Classifications by Relative Importance
Classification by Purpose/Function
The profitability turnover and solvency ratio come under the classification ratio by purpose
and function. These ratios can be understood by following tables
53
54
CLASSIFICATION OF RATIOS
PROFITABILITY RATIO
TURNOVER RATIO FINANCIAL SOLVENCY RATIO
Return investment ratio
Net profit ratio
Gross Profit ratio
Expenses ratio
Operating ratio
Return investment ratio
Net profit ratio
Gross Profit ratio
Expenses ratio
Operating ratio
SHORT TERM SOLVENCY RATIO
LONG TERM SOLVENCY RATIO
Current ratio
Liquid ratio
Cash position ratio
Proper ratio
Fixed asset ratio
Capital gearing ratio
PROFITABILITY RATIO:
Profit making is the main objective of every business. Aim of business concern is to
earn maximum profit in absolute terms and also in relative terms. That is Profit to be
maximum in terms of risk undertaken and capital employed. Ability to make optimum
utilization or resources by a business concern is termed as “Profitability”. The following are
the various ratios used to analyze profitability.
Return on Investment
Net Profit Ratio
Gross Profit Ratio
Expenses Ratio
Operating Ratio
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RETURN ON INVESTMENT:
It is also called as overall profitability rates on returns on capital employed. It
resources the sufficiency or otherwise of profit in relations to capital employed.
Formula
Operating Profit Return on Investment = × 100
Capital Employed
Years Particulars Ratio
2008 84464/118150×100 71.49
2009 64830.40/99021.21×100 65.47
2010 53132.09/160234.48×100 33.16
INTERPRETATION:
Return on Investment is used to measure the operational and managerial efficiency.
The higher the ratio the more is the use of the capital employed. In this case ROI of the
company with that of capital employed.
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NET PROFIT RATIO:
This Ratio is also called Net Profit to Sales Ratio. It is a measure of managements
efficiency in operating the business, successfully from the owners point of view. It
indicates the return on share holder investement. Higher the ratio is better the Operational
Efficiency of the Business concern.
Formula
Net Profit after TaxNet Profit ratio = × 100 Net Sales
Years Particulars Ratio
2008 84464/355447 ×100 23.76
2009 64830.40/383912.30×100 16.89
2010 53132.09/3687.27×100 14.40
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INTERPRETATION:
Higher the ratio is better the operational efficiency of the business concern. In this case
2009 is 16.89 than the current year 2010 is 14.40. It is not good for the company.
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GROSS PROFIT RATIO:
The ratio is also called asgross margin or trading margin ratio. Gross profit ratio
indicates the differences between sales and direct costs. Gross profit ratio explains the
relationship between gross profit and net profit.
Formula
Gross ProfitGross Profit ratio = ×100
Net sales
Years Particulars Ratio
2008 43825/355447 ×100 12.33
2009 72764.23/383912.30×100 18.95
2010 48774.59/3687.27×100 13.22
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INTERPRETATION:
Gross profit ratio is expected to be adequate to cover operating expenses, fixed interest
charges, dividends and transfer to resources, and higher profitability. In this case the gross
profit for the year 2009 shows 12.33 when compared with the next year 2010 18.95. it is
because of 13.22 the sales of the company and decline in the manufacturing expenses.
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EXPENSES RATIO:
These Ratios are also known as supporting ratio of operating ratio. They indicate the
efficiency with which business in as a whole function. It is better for the concern to know
how it is able to sale or waste over expenditure in respect of different items of expenses.
Therefore, each aspect of cost of sales and operating expenses are analyzed.
Formula
Administration expensesAdministration expenses Ratio = ×100
Net Sales
Years Particulars Ratio
2008 8311.70 ×100 2.34
2009 12805.02/383912.30×100 3.34
2010 16375.67/3687.27×100 4.46
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INTERPRETATION:
It is always better to have a lower ratio as it indicates the efficiency with which business a
whole function. In this case 2009 shows 3.34 than by 2009. In this case 2010 4.44 than
2009.
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OPERATING RATIO:
It is the ratio of profit made from operational sources to the sales. Usually shown as
a percentage it shows the operational as a percentage it shows the operational efficiency
of the firm and it is a measure of the management efficiency in running the routine
operations of the firm.
Formula
Operating ProfitOperating Profit Ratio = × 100
Net Sales
Years Particulars Ratio
2008 1113056/181150.58×100 16.89
2009 64830.40/383912.30×100 14.40
2010 53132.09/3687.27×100 31.84
INTERPRETATION:
Operating expenses are excluded from gross profit to find operating profit. A higher
operating profit indicates the higher efficiency of the company to earn profits from its
operations. In this case the ratio of 2010 14.40 increase than 2009 16.89.
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TURNOVER RATIO:
Turnover ratio or Activity Ratio. This ratio is also called as performance ratios.
Activity ratio highest the operational efficiency of the business concern. The term
operational refers to effective, profitable and rational use of resources available to the
concern.
WORKING CAPITAL RATIO:
Working Capital ratio measures the effective utilization of working capital. It also
measures the smooth running or business or otherwise. The ratio establishes relationship
between cost of sales and working capital.
Formula
SalesWorking capital ratio = × 100
Net working capital
PARTICULARS 2009 (Rs IN
MN)
2010 (Rs IN MN)
sales 39545.3 42216.9
working capital 734.60 1333.07
working capital turnover ratio 53.8 31.76
INTERPRETATION:
Higher sales in comparison to working capital indicates overtrading and lower sales
in comparison to working capital indicates under trading. Higher ratio is the indication of
higher investment of working capital and more profit. 25.80 in 2009 is more than 23.01 in
2010.
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FIXED ASSET TURNOVER RATIO:
This ratio determines efficiency of utilization of fixed and profitability of a business
concern. Higher the ration more is the efficiency in utilization of fixed assets. A lower ratio
is the indication of under utilization of fixed assets.
Formula
SalesFixed Assets Turnover ratio = × 100
Fixed Assets
PARTICULARS 2009 (Rs IN
MN)
2010 (Rs IN
MN)sales 39545.3 42216.9
Fixed Assets 3808.25 3918.61
Fixed Assets turnover ratio 10.4 10.87
INTERPRETATION:
The higher ratio is preferable as its reveals the utilization of fixed assets in the
business. In the year 2010 the ratio is 79.78 it is 81.47 when compared to the previous
year.
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CAPITAL TURNOVER RATIO:
Managerial Efficiency is also calculated by establishing the relationship between
cost of sales or sales with the amount of capital invested in the business.
Formula
SalesCapital Turnover ratio = × 100
Capital Employed
INTERPRETATION:
Higher ratio indicated higher efficiency and lower ratio indicates the inefficiency.
Usage of capital. In this case 2009 ratio 25.00 is 23.01 less than the current year 2010
SOLVENCY OR FINANCIAL RATIO
1. SHORT TERM SOLVENCY:
o CURRENT RATIO:
This ratio of Current Assets to Current Liabilities is called as Current Ratio. In order
to measure the short term liquidity of solvency as a concern, comparison of current asset
and current liabilities is inevitable. Current ratio indicates the ability of a concern to meet
its current obligations as and when they are due for payment.
Formula
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Current AssetsCurrent ratio = × 100
Current Liabilities
INTERPRETATION:
The ideal current ratio is 2 ie for every 1 of current liabilities there should be
coverage of current assets to the extent of 2. This implies safety to the creditors (Short
Term) and Safety to the company. In the Present case the current ratio is 0.78. but it is
totally more than the previous year 2009.
o LIQUID RATIO:
The Ratio is also called as “Quick” or acid test ratio. It is calculated by comparing
the quick assets with current liabilities. Quick assets which are quickly convertible in to
cash current assets other than stock and prepaid expenses are considered as quick asset.
Formula
Liquid AssetLiquid ratio = × 100 Current Liabilites
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INTERPRETATION:
The ideal ratio is 1. Thus is because quick asset are not inclusive of inventories and
prepaid expenses. Therefore, current liabilities are covered by short term realizable
assets, in the present case the company is maintaining a ration of times.
FIXED ASSET RATIO :
The ratio establishes the relationship between fixed assets and long term funds.
The objective of calculating this ratio is to ascertain the proportion of long term funds
invested in fixed assets.
Formula
Fixed AssetFixed Asset Ratio = × 100
Long Term Funds
INTERPRETATION:
The object of this ratio is to ascertain the proposition of long term funds invested in
fixed assets. An ideal ratio is 1% if it is than one it is the indication that a portion of working
capital is financial by long term funds. If it is more than 1 the fixed assets are purchased
with short term funds, which is not a prudent policy. In this case the ratio is 91.74%.
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SALES DEPARTMENT
69
After the goods are made, it has to be sold. Sales are generally done through the
dealers. The Sales Department has to render some services before selling.
Fixation of Prices:
The Sales Department also does the fixation of prices for the finished goods. Any
discount to be allowed is also done by the department.
Marketing:
According to American Marketing Association, “Marketing is concerned with the
people and activities involved in the flow of goods and services from producers to the
customers. The marketing in India Cements Limited is done through vital network.
Clinker:
Though a clinker sale does not play a major role, it also contributes to the sales.
The major sales zones of clinker are:
South Tamil Nadu
South Kerala
North Kerala
Andhra Pradesh
Karnataka
Marketing Analysis:
Marketing Analysis includes the following:
Market Penetration
Increase the sales of the present production in the market through some aggressive
marketing efforts.
Attract users of other brands
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Attract new customers.
Marketing Development:
Increase sales by entering new market with present products for development
market.
They also have to market additional areas to improve their supply product
development.
Increase sales by way of developing new products in the present market.
Newspaper margins are the various sources through which the product can be
introduced to the general public.
71
MARKETING DEVELOPMENT STRUCTURE
72
EXECUTIVE COMMITTEE
MARKETING
CHIEF MANAGER
PLANNING AND FORECASTING MANAGER
SENIOR MARKETING PERSON
MARKETING EXECUTIVE
ASSISTANTS
TABLE SHOWING SALES FOR PAST 10 YEARS
YEARS SALES (Rs. IN LAKHS)
2001 145137
2002 131325
2003 103300
2004 123688
2005 140230
2006 183669
2007 262088
2008 360561
2009 395454
2010 422169
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SECRETARIAL DEPARTMENT
74
The company has mainly three sections namely:
1. Secretarial Section
2. Legal Section
3. Share Section
The Secretarial Department maintains the above three sections and has
responsibilities as follows:
Secretarial Sections
The Secretarial Department is incharge of conducting the meetings such as
1. Board Meeting
2. Annual General Meeting
3. Extra Ordinary Meeting
The Board Meeting section also maintains facsimile of the Memorandum of
Association and the Articles of Association of the company.
The Department maintains the following:
Register of directors
Register of Directors Share Holdings
Register of Montage and Charges
Register of Loans and Guarantee
Register of Share and Debenture holders.
75
DEMATERIALIZATION OF SHARES AND LIQUID EQUITY
SHARES
76
Definition:
Dematerialization is the process of converting physical shares (Share Certificates)
into an electronic form shares once converted into dematerialized form are held in a demat
account.
Meaning:
Dematerialization is a process by which physical certificates of an investor are
converted into electronic form and credited to the account of the depository participants.
Dematted securities do not have any certificates numbers or distinctive numbers and are
dealt only in quantity, i.e. the securities are replaceable.
Investors can dematerialize only those certificates that are already registered in
their names and are in the list of securities admitted for dematerialization. These are
shares, scripts, stocks, bonds, debentures, stock or other marketable securities of a like
nature in or any incorporated company or other body corporate, units or mutual funds.
Rights under collective investment schemes and venture capital funds, commercial paper,
certificate of deposit, securities debt, money market instrument and unlisted securities,
underlying sharing of American depository receipts issued to non resident holders.
Dematerialization is the process of converting physical holdings into electronic form with
the depository where in the share certificates are shredded and corresponding entry of the
number of shares is done in the opened with the depository. The securities held in
dematerialized form are fungible that is they do not bear any notable feature like distinctive
number, folio number or certificate number. Once shares get dematerialized they lose their
identity in terms share certificates distinctive numbers and folio numbers.
77
Dematerialization Process:
An Investor having securities in physical form must get them dematerialized, if he
intends to sell them, this requires the investor to fill a demat request form (DRF) which is
available with every DP and submit the same along with the physical certificates. Every
security has an ISIN (International Securities Identification Number). If there is more than
one security than the equal numbers of DFRS has to be filled in the whole process goes
on in the following manner.
1. Investor surrenders the physical certificates to the Depository participants for
dematerialization.
2. Depository participants informs the depository about the request.
3. Depository participants submits the certificates to the registrar of the issuer
company.
4. Registrar communicates with the depository to confirm the request.
5. Dematerialization of the certificates is done by the registrar.
6. Accounts are updated by the registrar and the depository is informed about the
completion of dematerialization.
7. Accounts are updated by the depository and DP is informed about the same.
8. Demat account of the investor is updated by DP.
Benefits of Demat Account:
A safe and convenient way of holding securities (Equity and Debt Instruments
both).
78
Transactions involving physical securities are costlier than those involving
dematerialized securities (just like the transactions through a bank teller are costlier
than ATM transactions). Therefore, charges applicable to an investor are lesser for
each transaction.
Securities can be transferred at an instruction immediately.
Increased liquidity, as securities can be sold at any time during the trading hours
(Between 9.55AM to 3.30PM on all working days), and payment can be received in
a very short period of time.
No stamp duty charges.
Risks like forgery, thefts, bad delivery delays in transfer etc. associated with
physical certificates are eliminated.
Pledging of securities in a short period of time.
Reduced paper work and transaction cost.
Odd lot shares can also be traded (Can be even 1 share)
Nomination facility available
Any change in Address or bank account details can be electronically intimated to all
the companies in which investor holds any securities, without having to inform each
of them separately.
Securities are transferred by the DP itself, so no need to correspond with the
companies.
Shares arising out of bonus, split, consolidation, merger etc. are automatically
credited into the demat account of the investor.
79
Share allotted in public issues are directly credited into demat account of the
applicants in quick time.
As on 31st March 2009, the Company’s Equity shares have been dematerialized as
per directions issued by SEBI. It is compulsory to trade in the company’s shares in
dematerialization from with effect from 29th November 1999. The ISN number allotted by
National Securities Depository Limited (NSDL) and Central Depository Service India
Limited (CSDL) for trading in company’s shares in demat form is INE383A01012.
During the year 2008-2009, the company had received requests for
dematerialization of shares. The company has acted upon all valid requests received for
dematerialization during the year 2008-2009.
Equity Warrants:
ISIN number INE383A1317 has been allotted by National Security Depository
Limited (NSDL) for trading of equity warrants in dematerialization form, issued by the
company during the year 2008-2009.
Transmission:
Transmission of shares is effected in case of death of any shareholders in stock
holding. The following details are necessary.
A copy of death certificate duty attested by the judicial magistrate, or executive
magistrate, or executive magistrate or notary public.
Transmission from duly filled and signed by legal heirs.
Share certificate.
Procedure:
80
Specimen signature of the surviving shareholders is verified. On verification, a
share transmission form is prepared with all details namely, inward number, date of
receipt, number of share, distinctive number, transfer name and address, etc.
On the basis, the details are entered on the terminals and check list is obtained of
their legal heir.
The Secretarial Department after verifying the entire document transfer the shares
in the name of the legal heirs.
Register of Members:
Another Important function of the Secretarial Department maintaining the register of
members.
The register of members contains details regarding the name, address, occupation,
name of the joint holder, distinctive number. If there are any changes in above details. It is
updated regularly.
Annual General Meeting:
63rd Annual General Meeting of the India Cements Limited was held on 7 th
September 2008 at Sathguru Grandshall No 314, T.T.K Road, Alwarpet Chennai-600018.
Extra Ordinary General Meeting:
The following are the business transcend at the Extra ordinary General Meeting:
Altering of Share Capital
Removal of Director before the expiry terms
To transact any special business which cannot be postponed till the next Annual
General Meeting
No such Extra Ordinary Meeting was held during the financial year.
81
The Department Maintains:
Register of Directors
Register of Directors Share Holding
Register of Loans and Generates
Register of Share and Debentures Holders.
Ordinary Business:
Consideration of Mr.N.Shanker as a director who had retirementation, Reappointed
Mr.B.S.Adhityan who is eligible for reappointment.
Appointed M/S.Brahmayya & Co. and D.S.Subramanian Iyer and CO. as their
Auditor of the company and fixed 40, 00,000 each as their remuneration.
Special Business:
Resolved that Mr.N.D.Pringe of ICL has been appointed as the director of the
company subjected to retirement y relation.
Notices have been received by the company from a member of the company as
required under section 257 of the Companies Act, 1956.
Various Changes are to be implemented in the organization structure to suit the
present business condition.
Research and Development Department:
Research and Development Department plays a vital role in developing of
Industrial. The reserve department steps up to introduce same new products time to time
which is incidental and ancillary.
82
Expenditure on research department capital:
A sum of Rs.2.36 lakhs was spent during the year for procurement and installation
of equipments.
Researching:
A sum of Rs.42.62 lakhs has been spent during the year for the functioning of
research and department. Besides this Rs.41.47 lakhs is the contribute to National Council
for cement and a Building Materials (NCCBM) which carriers our research on behalf of the
industry.
83
EMPLOYEES WELFARE
There are employees’ welfare measures such as:
84
Facilities for children education
Sports and recreational facilities
Loans and advances
Medical facilities
Retirement benefits
Drinking water
Rest and lunch room
Housing facilities
Special medical aid
Leave travel concession
Free coffee and tea
And necessary safety measures
85
SPECIALACHIEVEMENTS AND
MILESTONES
1949
Commissioning of first Cement plant at Sankarnagar-Installed capacity 1 lac tonnes per
annum.
1963
86
Commissioning of second Cement plant at Sankaridrug-Installed capacity 2 lac tonnes per
annum.
1969
Capacity expansion at Sankarnagar touches 9 lac tonnes per annum.
Awarded Merit Certification for Outstanding Export Performance (1968-1969).
1971
Capacity Expansion at Sankari Durg to 6.00 Lakh tonnes per annum.
1990
Acquisition of Coromandel Cement plant at Cuddapah-Installed Capacity rises to 2.6
million tonnes per annum.The India Cements Ltd. becomes the largest producer of
Cement in South India.
Conversion of Sankarnagar Plant to Dry Process with the increased capacity of 1.00
million tonnes per annum.
1991
India Cements ventures into Shipping. Sets up a Shipping Division.
1994
ISO 9002 Certification for Sankarnagar plant.
Floats successfully US$ 50 million GDR issue.
1995
Announces issue of 1:1 Bonus shares.
1996
87
India Cements' green field cement plant at Dalavoi commences commercial production.
Installed capacity 0.9 million tonnes per annum.
1997
India cements acquires Aruna Sugars Finance Ltd.Renamed as India Cements Capital &
Finance Ltd
1998
India Cements acquires Cement Corporation of India's Yerraguntla Cement Plant at
Andhra Pradesh. Installed capacity 0.4 Million Tonnes.
India cements acquires Raasi Cement Ltd., at Nalgonda District of Andhra
Pradesh.Installed capacity 1.8 million tonnes.
1999
India Cements acquires Cement Plant of Shri Vishnu Cement Ltd., at Nalgonda District of
Andhra Pradesh. Installed capacity 1.0 Million Tonnes.
Turnover sails over the Rs. 1000 crore mark.
2001
India Cements divests its stake in Sri Vishnu Cement Limited.
2001
Group's overall capacity reaches 9 million tonnes.
2004
88
The Unique Waste Heat Recovery System for generation of power from waste gas at
Vishnupuram Cement Plant was commissioned during November 2004, for a capacity of
7.7 MW of power.
The company through its Special Purpose vehicle M/s Coromandel Electric Co Ltd has
commissioned a (gas based) captive power plant at Ramanathapuram for a capacity of
17.4 MW and the same has started supplying power from the month of November 2004.
2005
The Company has successfully completed an equity issue in the international market
during October 2005 by issuing 25,613,796 Global Depositary Shares (GDSs) at USD
4.3226 per GDS, (each GDS representing 2 underlying equity shares of Rs 10 each) and
raised an amount of Rs 497 crores including a premium of Rs 446 crores.
2006
The Company has issued unsecured Zero Coupon Convertible Bonds due 2011 (FCCBs)
for US $75 Million to investors outside India at an initial conversion price of Rs.305.57 per
share.
2007
The Hon'ble High Court of Judicature at Madras vide its order dated 25th July 2007
sanctioned the Scheme of amalgamation of Visaka Cement Industry Limited with The
India Cements Ltd.
89
2007
The Company has converted the Sankari plant from wet process to dry process and
commissioned the plant.
The Company has privately placed 2,07,89,000 equity shares at a price of Rs.285/- per
share (including premium of Rs.275/- per share) by way of Qualified Institutional
Placement in December 2007.
2008
The Company has revived its shipping business with the purchase of two ships (dry bulk
carriers) with a total capacity of 79843 DWT.
The Company has successfully bid for the Chennai franchise of the DLF-IPL 20/20 Cricket
Tournament –“Chennai Super Kings”.
The Company has completed and commenced commercial production of one million tonne
grinding plant at Chennai.
2009
The Company has completed and commenced commercial production of one million tonne
grinding plant at Parli (Maharashtra).
The Company’s subsidiary, namely, Trishul Concrete Produts Limited has completed and
commenced commercial production of one lakh Cu.M ready mix concrete Plant at
Hyderabad (Andhra Pradesh).
The II line of 1.2 MT at Malkapur was commenced operations from March 2009.
The upgraded capacity of kiln I to 3000 TPD (1700 TPD) at Vishnupuram started
functioning from April 2009.
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2010
ICL Financial Services Limited (ICLFSL), the Company’s wholly owned subsidiary,
acquired 60.89% (including shares acquired under open offer) of equity share capital of
Indo Zinc Limited (IZL). Consequently, IZL became a subsidiary of ICLFSL and ultimate
subsidiary of the Company in January, 2010.
The Corporate office of the company was shifted in February, 2010 to its own building
“Coromandel Towers” at 93, Santhome High Road, Karpagam Avenue, MRC Nagar,
Chennai 600 028.
The Company privately placed in March, 2010 2, 45, 94,000 equity shares at a price of
Rs.120.20 per share (including premium of Rs.110.20 per share) to Qualified Institutional
Buyers.
The Company’s cricket franchise “Chennai Super Kings” has won IPL III Trophy in April
2010.
The Company invested 99.99% of the share capital of coromandel minerals Pte. Limited
(CMPL) Singapore making CMPL a subsidiary effective from 1st June 2010.
The Chilamakur plant with capacity upgraded to 4500 tonnes per day started functioning
from June 2010
The company cricket franchise “Chennai Super Kings “ won champion legal T20
tournament on 26th September 2010
2011
Trinetra cement Limited (formerly Indo Zinc Limited).the company’s subsidiary has
commenced commercial production of its 1.5 million tonnes cements plant in banswara
District Rajasthan, in January 2011.
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IS/ISO 9001:2008 certification for Dalavoi plant in February 2011.
The company Cricket franchise “Chennai Super Kings” won IPL IV Trophy on 28th MAY
2011.
The Birth centenary of Sri.T.S.Narayanaswami. one of the founders of the companywas
celebrated on 11th November. 2011.
2012
The 48 MW Captive power plant at sankarnagar was commissioned in January 2012.
IS/ISO 9001:2008 Certification for Yerraguntla plant in April 2012.
The company has acquired its third bulk carrier of 52489 DWT in August 2012.
Commemorative postage stamp on the Birth Centenary of Sri.T.S.Narayanaswami, one of
the released of the company. Was 11th November , 2012.
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CONCLUSION
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The Institutional Training which is an applicant oriented subject helped me to gain
knowledge about the activites of the company which is not possible through theoretical
knowledge.
India Cements Limited is the leading cement manufacture in the country. I have a
great pleasure to present this project report on the working of India Cements Limited. The
Institutional Training which I understand in the company has really helped me in
understanding the atmosphere of today’s corporate world. The experience has created on
interest in that to enter into the corporate world with confidence.
94
APPENDICES
BALANCE SHEET OF THE INDIA CEMENTS LIMITED FOR
THE FINANCIAL YEAR MAR 2007 (Rs Crore)
2007Sources of fundsOwner's fund
95
Equity share capital 220.37Share application money 40.00Preference share capital -Reserves & surplus 1,166.18Loan fundsSecured loans 1,165.99Unsecured loans 892.77Total 3,485.31Uses of fundsFixed assetsGross block 3,856.04Less : revaluation reserve 781.98Less : accumulated depreciation 1,060.21Net block 2,013.85Capital work-in-progress 142.75Investments 55.07Net current assetsCurrent assets, loans & advances 1,734.79Less : current liabilities & provisions 494.28Total net current assets 1,240.51Miscellaneous expenses not written 33.12Total 3,485.31Notes:Book value of unquoted investments 49.73Market value of quoted investments 6.81Contingent liabilities 295.29Number of equity shares outstanding (Lacs) 2203.74
BALANCE SHEET OF THE INDIA CEMENTS LIMITED FOR
THE FINANCIAL YEAR MAR 2008 (Rs Crore)
2008
96
Sources of fundsOwner's fundEquity share capital 281.87Share application money -Preference share capital -Reserves & surplus 2,314.94Loan fundsSecured loans 971.02Unsecured loans 840.49Total 4,408.32Uses of fundsFixed assetsGross block 4,708.69Less : revaluation reserve 724.30Less : accumulated depreciation 1,244.24Net block 2,740.16Capital work-in-progress 574.91Investments 129.28Net current assetsCurrent assets, loans & advances 2,149.41Less : current liabilities & provisions 1,209.25Total net current assets 940.17Miscellaneous expenses not written 23.79Total 4,408.32Notes:Book value of unquoted investments 123.93Market value of quoted investments 6.38Contingent liabilities 597.23Number of equity shares outstanding (Lacs) 2818.69
BALANCE SHEET OF THE INDIA CEMENTS LIMITED FOR
THE FINANCIAL YEAR MAR 2009 (Rs Crore)
2009
97
Sources of fundsOwner's fundEquity share capital 282.43Share application money -Preference share capital -Reserves & surplus 2,683.03Loan fundsSecured loans 1,036.25Unsecured loans 951.78Total 4,953.49Uses of fundsFixed assetsGross block 5,313.58Less : revaluation reserve 665.93Less : accumulated depreciation 1,505.33Net block 3,142.32Capital work-in-progress 904.04Investments 158.97Net current assetsCurrent assets, loans & advances 2,161.98Less : current liabilities & provisions 1,427.38Total net current assets 734.60Miscellaneous expenses not written 13.55Total 4,953.49Notes:Book value of unquoted investments 155.75Market value of quoted investments 2.14Contingent liabilities 357.97Number of equity shares outstanding (Lacs) 2824.32
BALANCE SHEET OF THE INDIA CEMENTS LIMITED FOR
THE FINANCIAL YEAR MAR 2010 (Rs Crore)
2010
98
Sources of fundsOwner's fundEquity share capital 307.17Share application money -Preference share capital -Reserves & surplus 3,221.09Loan fundsSecured loans 866.64Unsecured loans 1,266.09Total 5,661.00Uses of fundsFixed assetsGross block 5,710.20Less : revaluation reserve 607.56Less : accumulated depreciation 1,791.59Net block 3,311.06Capital work-in-progress 702.89Investments 313.97Net current assetsCurrent assets, loans & advances 2,897.08Less : current liabilities & provisions 1,564.01Total net current assets 1,333.07Miscellaneous expenses not written -Total 5,661.00Notes:Book value of unquoted investments 210.01Market value of quoted investments 104.30Contingent liabilities 532.04Number of equity shares outstanding (Lacs) 3071.76
BALANCE SHEET OF THE INDIA CEMENTS LIMITED FOR
THE FINANCIAL YEAR MAR 2011 (Rs Crore)
2011
99
Sources of fundsOwner's fundEquity share capital 307.18Share application money -Preference share capital -Reserves & surplus 3,232.48Loan fundsSecured loans 1,177.86Unsecured loans 1,278.21Total 5,995.73Uses of fundsFixed assetsGross block 5,925.99Less : revaluation reserve 550.10Less : accumulated depreciation 2,091.51Net block 3,284.38Capital work-in-progress 1,039.83Investments 160.31Net current assetsCurrent assets, loans & advances 2,922.01Less : current liabilities & provisions 1,410.80Total net current assets 1,511.21Miscellaneous expenses not written -Total 5,995.73Notes:Book value of unquoted investments 145.48Market value of quoted investments 104.33Contingent liabilities 525.28Number of equity shares outstanding (Lacs) 3071.77
BALANCE SHEET OF THE INDIA CEMENTS LIMITED FOR
THE FINANCIAL YEAR MAR 2012 (Rs Crore)
2012
100
Sources of fundsOwner's fundEquity share capital 307.18Share application money -Preference share capital -Reserves & surplus 3,760.44Loan fundsSecured loans 1,514.11Unsecured loans 758.48Total 6,336.20Uses of fundsFixed assetsGross block 6,501.93Less : revaluation reserve -Less : accumulated depreciation 2,369.01Net block 4,132.92Capital work-in-progress 145.10Investments 851.96Net current assetsCurrent assets, loans & advances 3,111.35Less : current liabilities & provisions 1,914.01Total net current assets 1,197.34Miscellaneous expenses not written 8.88Total 6,336.20Notes:Book value of unquoted investments 846.41Market value of quoted investments 4.06Contingent liabilities 693.38Number of equity shares outstanding (Lacs) 3071.79
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