nisha manikandan

THE BRIEF HISTORY OF THE

COMPANY

1946:

1

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.

2

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

3

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.

5

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

6

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.

7

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.

8

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.

9

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

10

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.

11

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.

13

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)

15

MANAGEMENT AND ADMINISTRATION

16

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

17

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.

18

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

19

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

21

take the number of shares in the capital of the company set opposite to their respective

names.

22

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.

25

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

28

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:

29

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.

30

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.

32

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

34

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

35

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

36

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

38

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

47

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

50

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

55

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.

56

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


2008 84464/355447 ×100 23.76

2009 64830.40/383912.30×100 16.89

2010 53132.09/3687.27×100 14.40

57

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.

58

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


2008 43825/355447 ×100 12.33

2009 72764.23/383912.30×100 18.95

2010 48774.59/3687.27×100 13.22

59

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.

60

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


2008 8311.70 ×100 2.34

2009 12805.02/383912.30×100 3.34

2010 16375.67/3687.27×100 4.46

61

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.

62

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


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.

64

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.

65

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

66

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

67

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

70

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

73

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.

90

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.

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APPENDICES

BALANCE SHEET OF THE INDIA CEMENTS LIMITED FOR

THE FINANCIAL YEAR MAR 2007 (Rs Crore)

2007Sources of fundsOwner's fund

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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



2008

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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



2009

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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



2010

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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



2011

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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



2012

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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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