Introduction I applied for Summer Internship program in various companies before March 2012 and I got approval from

various companies like Religare Securities , Aviva Life Insurance , Reliance Communications , Air India , Topcem etc. I Consulted my

Industry Review

Introduction The cement sector notably plays a critical role in the economic growth of the country and its journey towards conclusive growth. Cement is vital to the construction sector and all infrastructural projects. The construction sector alone constitutes 7 per cent of the country's gross domestic product (GDP). The industry occupies an important place in the Indian economy because of its strong linkages to other sectors such as construction, transportation, coal and power. India is the second largest producer of quality cement in the world. The cement industry in India comprises 183 large cement plants and over 365 mini cement plants. Currently there are 40 players in the industry across the country. The cement industry in India is experiencing a boom on account of overall growth in the economy. The demand for cement, being a derived one, depends mainly on the industrial activities, real estate business, construction activities and investment in the infrastructure sector. The Indian cement industry is involved in production of several types of cement such as Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement (PBFS), Oil Well Cement, Rapid Hardening Portland Cement, Sulphate Resisting Portland Cement, White Cement, etc. They are produced strictly as per the Bureau of Indian Standards (BIS) specifications and their quality is comparable with the best in the world. Indian cement majorsACC Ltd, Shree Cement Ltd and Ultratechhave signed a cooperation pact to support low-carbon investments in India. The pact was signed in Geneva with member companies of the World Business Council (WBC) for Sustainable Developments Cement Sustainability Initiative and International Finance Corporation (IFC). Under the pact, a Low Carbon Technology Roadmap for the Indian cement industry is to be launched this year-end. The roadmap will outline a possible transition path for the cement industry to reduce its direct emissions by 18 per cent by 2050. India is the second-largest cement producing country in the world after China. The countrys cement production was 300 million tonnes in 2010; the figure is expected to double to reach almost 550 million tonnes by 2020, as per estimates by the Cement Manufacturers Association (CMA). As of 2011, there were 137 large and 365 mini cement plants in India.

The Indian cement industry is globally competitive with lowest energy consumption and CO2 emissions. Apart from fulfilling domestic cement requirements, the industry also exports cement and clinker to around 30 countries across the globe. In India, cement demand emanates from four key segments housing, accounting for 67%; infrastructure for 13%; commercial construction for 11%; and industrial sector for 9%. The cement industry has evolved in the form of clusters across the country due to the location of limestone reserves in certain states. Presently, there are seven clusters, namely the Satna cluster in Madhya Pradesh; Chandrapur in north Andhra Pradesh and Maharashtra; Gulbarga in north Karnataka and east Andhra Pradesh; Chanderia in south Rajasthan, Jawad and Neemuch in Madhya Pradesh; Bilaspur in Chattisgarh; Yerraguntla in south Andhra Pradesh and Nalgonda in central Andhra Pradesh. During 2009-10, the Indian cement industry grew at a robust rate of 12.7%, according to CMA. With the government promoting construction activities across the country through various stimulus packages for building roads, bridges, houses, etc., the Indian cement industry added a capacity of 37 million tonnes in 2009-10, which is the highest capacity ever added in any single year so far. The governments focus on building infrastructure is likely to continue in the near future and the Indian cement industry is expected to sustain an even higher growth rate of 15% over the coming years. Policy and Promotion Some of the policy measures adopted by the Indian government to support and aid the growth of the Indian cement industry include the following: No custom duty on non-coking coal: In Budget 2012-13, the government has exempted non-coking coal, one of the main raw materials for cement production, from basic customs duty (earlier at 5%). This will have a positive impact of 1-1.5% on the cement industrys operating profit, according to Crisil, a global analytical company providing ratings, research and risk policy advisory services. The Indian cement industry sources close to one-fourth of its total coal requirement through imported coal.

North-east package: The Government of India has also approved a package of fiscal incentives and other concessions for the countrys north-east region, namely the North East Industrial and Investment Policy, 2007. Highway development funds: Further, to attract foreign investors to its ambitious highways building programme, the Ministry of Road Transport plans to roll out projects worth USD 120 billion by 2016. Boost to infrastructure sector: The government is increasing allocation for the infrastructure sector. In FY 2011-12, it allocated USD 46.5 billion funds to the sector, tax-free bonds worth USD 6.5 billion and debt funds for the infrastructure sector, and a comprehensive policy for developing public-private partnership projects. The government has further enhanced the tax-free bond limit enhanced to USD 30 billion in FY 2012-13. It has also established an infrastructure debt fund worth USD 1.8 billion. Rural road development: The government has allocated a fund of INR 24,000 crore for the development of rural road projects in FY 2012-13.

Market Size The cement industry of India is expected to add 30-40 million tonnes per annum (MTPA) of capacity in 2013. The industry has a current capacity of 324 MTPA and operates at 75-80 per cent utilisation. "It is anticipated that the cement industry players will continue to increase their annual cement output in coming years and the country's cement production will grow at a compound annual growth rate (CAGR) of around 12 per cent during 2011-12 - 2013-14 to reach 303 million metric tonne (MMT)," according to a report titled 'Indian Cement Industry Forecast to 2012', by research firm RNCOS. Major Players The major domestic cement companies in India include Ultratech Cement, Ambuja Cement, JK Cements, ACC Cement, Century Cements, India Cements, Sanghi Cements, Dalmia Cements, Saurashtra Cements and Madras Cements.

With booming cement demand in India and abroad, many foreign cement players are also establishing and expanding their presence in India. The worlds top cement companies are present in India, namely France's Lafarge, Holcim from Switzerland, Italy's Italcementi and Germany's Heidelberg Cements. Holcim, one of the largest global cement industry players, has established its presence in India by buying a major stake in two established brands of ACC and Ambuja Cements. Collectively, these companies have the largest market share in India, close to 50% of the total market size. As of 2012, Holcim has an annual capacity of 57 million tonnes, higher than domestic player Aditya Birla Group's UltraTech Cements capacity of 52 million tonnes. Holcim is planning to raise its capacity by investing INR 1,800 crore in Ambuja Cements by the year 2013.

Region wise Capacity The Indian cement industry has to be viewed in terms of five regions:North (Punjab, Delhi, Karanataka, Himachal Pradesh, Rajasthan, Chandigarh, J&K and Uttranchal); West (Maharashtra and Gujarat); South (Tamil Nadu, Andhra Pradesh, Karnataka, Kerala, Pondicherry, Andaman & Nicobar and Goa); East (Bihar, Orissa, West Bengal, Assam, Meghalaya, Jharkhand and Chhattisgarh); and Central (Uttar Pradesh and Madhya Pradesh).

Northern Region Punjab Delhi 2173.34 500.00

Karanataka Himachal Pradesh Rajasthan J&K TOTAL West Maharashtra Gujarat TOTAL South Tamil Nadu Andra Pradesh Karnataka Kerala TOTAL East Bihar Orissa West Bengal

172.00 4060.00 16299.34 200.00 23404.68

8950.00 12937.00 21887.00

12913.18 19831.02 9744.00 420.00 42908.20

1000.00 2761.00 2291.66

Assam Meghalaya Jharkhand Chattisgarh TOTAL Central U.P. M.P. TOTAL

400.00 3475.01 11287.33 21215.00

6297.00 16185.00 20482.00

Investments The cement and gypsum products sector has attracted foreign direct investments (FDI) worth Rs 11,779.04 crore (US$ 2.12 billion) between April 2000 to February 2013, according to the data published by the Department of Industrial Policy and Promotion (DIPP). Some of the major investments in the sector are as follows:

Barings Private Equity Asia has picked up a 14 per cent minority stake in the Indian unit of cement major Lafarge, for Rs 1,427 crore (US$ 257.11 million)

Sinoma International Engineering (Hong Kong) Ltd, a part of the Chinese state-run National Materials Group Corp, has entered the Indian cement equipment industry by acquiring a majority stake in Chennai-based equipment manufacturer LNV Technology Ltd

Dalmia Cement plans to invest Rs 1,800 crore (US$ 324.32 million) to increase the company's cement manufacturing capacity over the next two years. The company also plans to set up a 2.5 million tonne (MT) greenfield unit in Karnataka

Ambuja Cements Ltd plans to invest Rs 2,000 crore (US$ 360.33 million) to enhance its cement capacities in Rajasthan and northern region. The proposed project at Rajasthan would add five MT capacity to the total cement production of India

Reliance Cement Company Pvt Ltd (RCC), a subsidiary of Reliance Infrastructure Ltd, has commenced production of cement from its first manufacturing unit at Butibori, Nagpur in Maharashtra

Government Initiatives India would require overall cement capacity of around 480 MT. The industry will have to add another 150 MT of capacity during the period, according to the latest report from the working group on the industry for the 12th Five Year Plan (2012-17). The major policy and fiscal initiatives are expected to catalyze infrastructure and industrial development in the region, spurring the demand for cement. Some of initiatives taken by the Government to further promote the sector are as under:

Excise duty rationalised for packaged cement, whether manufactured by mini cement plants or others

Packaged cement, whether manufactured by mini-cement plants or others, attracts differential excise duty depending on the Retail Sale Price per bag. It is proposed to prescribe a unified rate of 12 per cent + Rs 120 (US$ 2.16) PMT for non-mini cement plants and 6 per cent + Rs 120 (US$ 2.16) PMT for mini-cement plants. It is proposed to charge this duty on the Retail Sale Price less abatement of 30 per cent

The Indian construction industry has shown significant development over the years with eminent and efficient engineers at the helm and is among the best in the world, said Anand Sundaresan, Managing Director, Schwing Stetter (India) Pvt Ltd, while inaugurating a conference on 'Latest Trends in Construction Industry'

The private sector is expected to contribute 44 per cent of the total projected spend of US$ 100 billion on roads and highways over the Twelfth Five Year Plan (2012-17) period

Road Ahead The demand for cement, depends primarily on the pace of activities in the business, financial, real estate and infrastructure sectors of the economy. Cement is considered the most preferred building material and is used worldwide for all construction works such as housing and industrial construction, as well as for creation of infrastructures like ports, roads, power plants, etc. Indian cement industry is globally competitive as the industry has witnessed healthy trends such as cost control and continuous technology upgradation.

India is experiencing growth in all these areas and hence the cement market is moving ahead in spite of the world-wide economic recession. The initiatives provided by the Government of India to various infrastructure projects, road network and housing activities will provide required stimulus for the growth of cement industry in India. Exchange Rate Used: INR 1 = US$ 0.018 as on May 22, 2013

Export of cement from India The Indian cement industry exported around 6 mt of cement during FY2006, accounting for around 4% of the total production. There has been a significant year on year variation in the export trend, implying that Companies rely on cement exports to balance out the domestic demand supply situation. As seen from above there is excess production, so the difference in supply and demand is met by exporting. The export of Indian cement has increased over the years, giving a boost to the Indian cement industry.

The demand for cement in the foreign countries is a derived demand, for it depends on industrial activity, real estate, and construction activity. Since growth is taking place all over the world in these sectors, Indian export of cement is also increasing.

The cement industry in India has around 300 mini cement plants and 130 large cement plants. The total production capacity of these plants is around 167.36 million tons. The India cement industry is technologically very advanced, as a result of which the quality of Indian cement is now considered the second best in the world. This has given a major boost to the Indian export of cement. The production of cement in India is not only able to meet the domestic demand, but large amounts are also exported. A fair amount of clinker and cement by-products are also exported by India. As the quality of Indian cement is very good, its demand in the international market is always high.

The graph shows that the production of cement in India is at 2nd place after China, this higher production is a good reason for exporting cement . In 2001-2002, 3.38 million tons of cement was exported from India. That figure stood at 3.47 million tons in 2002-03, and 3.36 million tons in 2003-04. In 2001-2002, 1.76 million tons of clinker was exported from India. In 2002- 2003 clinker exports amounted to 3.45 million tons, and in 2003- 2004 the figure stood at 5.64 million tons. This shows that the export of Indian cement has been increasing at a steady pace over the years.

Indian technology advantage The manufacturing process of cement consists of the mixing, drying and grinding of limestone, clay and silica into a composite mass. The mixture is then heated and burnt in a pre-heater and kiln to be cooled in an air cooling system to form clinker, which is the Semi-finished form. This clinker is cooled by air and subsequently ground with gypsum to form cement. The dry and semi-dry

processes are more fuel-efficient. The wet process requires 0.28 tonne of coal and 110 kWh of power to manufacture one tonne of cement, whereas the dry process requires only 0.18 tonnes of coal and 100 kWh of power. Coal and power costs account for 35 per cent of the total cement production costs. With 95 per cent of the total capacity based on the modern dry process technology, the Indian cement industry has become more cost efficient.

Demand and Supply Gap of Cement In India

Company Profile Meghalaya Cements Limited Profile The company started its production in the year 2006 with its plant at Lumshnong in Jaintia Hills district of Meghalaya. From than till date its has been an enduring journey through some of the steepest cliffs and troublesome waters.

Still the victory was achieved with sheer determination and consistent persuasion towards the goal. As of today, Topcem Cement, the brand name of Meghalaya Cements Limited, is one of the leading brands in the entire North East India. The company produces more than 1Lakh MT of Cement per month. The dealer base has increased spreading through the entire North East Region and North Bengal counting to more than 450.

There are 28 Sales Promoters and C & F agents looking after the entire sales operation along with the companys own sales team. This is indeed a reality that sale has surpassed all expectations. The company has never compromised on the values it has committed to adhere to. The parameters of quality, customer service etc., were always given the first priority. Hence, over the years it has established a firm brand value within the minds of the customers in all spheres.

Vision

To be an environment friendly company. To be the preferred source in the market that we serve by supplying quality product and services of superior value, fresh, timely and at most competitive price that exceeds customer expectations.

To be the preferred employer by creating a challenging environment for our employees based on dignity and respect that provides opportunities for personal growth and rewards

accomplishment.

To be a valued partner to our suppliers by working together to achieve mutual objectives. To be a responsible and supportive corporate in the communities in which we operate.

Objective

MCL thrives to be a leading cement manufacturer in the North Eastern part of India by ensuring the highest quality standards of our products.

The need for expansion is as genuine an instinct in us as the need for a plant for water.

At MCL, we aim to be an independent, vertically integrated cement producer, combining entrepreneurial spirit and operating excellence with respect for people, society and the environment.

By understanding the needs and aspirations of the dealers, employees and the wider community, TOPCEM group is able to maintain their position of strength as a sustainable cement producer without compromising on the commitment of long term stability of constructions and environmental responsibility.

MCL is a state-of-the-art plant that incorporates following technology :

Computerized Process Control System: Totally automated process ensures efficiency optimization and proper monitoring.

Integrated Plant: All processes of production at a single location avoids delay due to distance

and transportation.

Total Quality Control Management (TQM): World known Philosophy enacted in true sense for enhancing techno advancement.

Multi stage Pre-heater with Pre-calcinator Kiln: Low fuel consumption, low ash absorption and better quality.

High Efficiency Separators: Control particle size more accurately leading to a better final product.

Two Step Crushers : crushing in two step the limestone from company owned mine ensuring very fine particle size leading to improved clinker quality.

Aspiration Attain long-term growth with sustainable development.

Reach world-class operation and management standards comparable to those of the best global enterprises. Beliefs Cultivating Talents - We believe in and trust people, so we invest time and resources cultivating their talents. Meritocracy - We believe that people are unique and, thus, deserve to be valued fairly and in accordance with their accomplishments and deliverables. Excellence - We believe we can do more and better, overcoming challenges with discipline, humility, and simplicity. Pragmatism - We believe that it is essential to concentrate efforts on what is relevant, in an objective manner without losing sight of the big picture and the future. Open Dialogue - We believe that an environment of trust favors open dialogue and a forum to speak and be heard in, where a diversity of opinions can create better solutions.

Alliance - We believe our success is the outcome of the joint construction, strengthened by genuine relationships and win-win alliances. Sense of Ownership - We believe in those who take-on responsibilities, who work with passion and walk the talk, celebrate achievements and turn mistakes into learning experiences.

Sustainability Principles Continuation and growth of its businesses in the long term, anticipating the motivations of interested parties, and incorporating them into its objectives. This means: Being recognized by society as a socially and environmentally responsible company. Having sustainability as a strategy, guiding corporate governance, management, education, decisions and investments creating value. Consistently improving economic, social and environmental results, pursuing efficiency and reliability in operations according to world-class standards. Being recognized as a company that attracts, develops and retains talented people to generate value and build a fair and inclusive society. Being committed to the well-being, health and safety of its employees, clients and partners. Contributing to the development of the communities in which the Group operates. Encouraging the cooperation and participation of all employees and interested parties in building partnerships and stimulating teamwork, in order to create mutual value. People Quality in human resources management is one of the pillars in the Topcems management model. In order to ensure such quality, the Topcems Development System develops a culture of excellence in operations, focus on results, respect for the corporate values, adopting meritocracy at all levels. Attracting and retaining talented people involves offering opportunities for personal and professional growth to all employees, as well as remuneration and benefits policies, health and safety, and quality of life.

One of the initiatives is the Academy of Excellence, which is a kind of corporate university which helps to develop leadership and technical improvement. The Movimenta Project completes the development model, organizing the mobility of professionals within the Companies of the Group. The Alert Movement was created to ensure a standardized communication related to safety at industrial plants. It outlines the rules that can help preventing risk exposure. It complements the Golden Rules established to highlight specific procedures and to guarantee that operations are conducted according to the most rigid safety standards.

Board Of Directors: Mr. Kailash Lohia, Chairman

A commerce graduate, is a prominent industrialist in the North-East Region. He has wide industrial and business experience. The Lohia Group has a market leadership in the NER for sales of galvanized sheets, manufacture of MS Ingots, bars, ferro alloys, industrial oxygen, etc.

The Lohia Group has a large trading network and is the sole distributor in the NER for TATA GP/GC, Hindalco Aluminium Sheets, etc. and is the distributor for Bhushan Steels, Ispat Industries, Jindals etc. The group has an unparalleled marketing network of over 900 hardware and building materials stores, spanning the entire NER. The group has set up the Delhi Public School in Guwahati, which is a premier education institution in the NER and is highly successful. Sohum Shoppe Ltd. belonging to the group is the largest lifestyle & departmental store in the region. In this project, Mr. Kailash Lohia will be joined by his group member Mr. Ramavtar Agarwala, who is actively involved with the Lohia Groups activities, in Silchar and Byrnihat, si nce inception. He has been instrumental in the setting up the Delhi Public School in Guwahati. BVCL is operates a 300 tpd cement plant situated at Silchar in Assam (about 85 km from the current project). BVCL, presently, is the largest cement plant operating in the area. BVCL has achieved a capacity utilization of 60% in the first year and 89% in the second year of operation.

Mr. Bijay Kumar Garodia, Vice Chairman a successful industrialist and renowned philanthropist, has a distinguished career spanning 25 years. He is a prominent industrialist with interests in steel, tea, cement, plywood, rubber and construction in areas spanning North-East India to West Bengal and Gujarat. He has also promoted BVCL. He actively supports many social and educational organisations and is a member of the Lions Club International. He has served as a Honorary Director on the board of Arunachal Pradesh

Forest Corporation Limited where his outstanding contribution has been instrumental in bringing about wide ranging development of forest based industries in the state. He was conferred the national citizenship award by the Honorable Prime Minister of India in year 1995 for his contribution to the upliftment of the North-Eastern Region. The board will immensely benefit from a man with such wide experience and multifaceted skills.

Mr. Ramavtar Agarwala, Director - a prominent industrialist from the North East, has set up a number of plants and industries in conjunction with the Lohias and otherwise. He is socially very well known and recognized and is also considered as the force behind the projects. Mr. Ramavtar Agarwala started his career in 1981, with dealing in iron & steel products. He also started weigh bridges. He was also involved in his family shop M/s Steel trade & Agency. In 1992, he promoted a Company. M/s Barak Valley Alloys (P) Ltd, a company engaged in the manufacture of MS Ingots, Rods and Bars, at Silchar Assam. In the year 2000, Mr. Agarwal promoted another company, M/s Byrnihat Oxygen Pvt Ltd. Its unit is located at Byrnihat, Meghalaya, which manufacturers industrial gases. He became the co promoter of M/s Meghalaya Steels Limited a unit having integrated steel melting and rolling facilities, which has also added a Ferro Alloys division. Another Steel rolling mill by the name of Meghalaya Mineral Products was set up. Mr. Agarwal has been instrumental in setting up the Delhi Public School, Guwahati, which came up in the year 2002-03. Mr. Agarwal is also involved in setting up Meghalaya Cements Ltd. He set up Tripura Ispat a integrated steel unit in Tripura. He has also set up a poultry feed plant in Meghalaya and is now setting up the first Integrated township project in the North East.

Mr. Mahendra Agarwal, Managing Director a science graduate from Calcutta University, brings, to the board of the company, a reservoir of rich experience in establishing and efficiently running industries, in diverse sectors such as plywood, cigarettes, cosmetics, cement and turnkey town water supply projects.

He is a promoter director of a successfully run, medium scale cement manufacturing unit of BVCL. He has been the main driving force behind the technical excellence and commercial success of this cement project, which manufactures 300 tpd of cement through a dry process, rotary kiln based plant. His first hand involvement in the aforesaid project, right from inception, will prove to be an asset to the company.

Organisational Structure

Product Profile

Ordinary Portland Cement (OPC) 43

43 Grade Cement is the popular Brand Cement with low heat of hydration and long life of Concrete Structures. ADVANTAGES Develops early strength at 3 and 7 days with exceptionally high 28 days strength. Form work of slabs and beams can be removed much earlier which results in increased speed of construction. Unbeatable consistency in quality gives better accountability for mix design The higher characteristics strength of concrete leads to higher bond strength minimizing the possibility of slippage of reinforcements. The dense and least permeable concrete prevents leakage / seepage problems. Its high fineness offers better workability for a given water cement ratio ensuring very dense, compact and durable concrete. Being the low alkali cement it provides insurance against alkali-aggregate reaction, this results in durable structures.

IDEAL APPLICATIONS Residential and commercial complex. PCC solid and hollow blocks Defense Constructions Airport-Runways Cement tanks Asbestos cement products Concrete roads and Ferro-cement concrete elements

BIS SPECIFICATIONS AND SDCC NORMS OF 43 GRADE OPC Sr.No. Description Unit Req. as per IS- SDCC Norms

12269- 1987 A) CHEMICAL COMPOSITION 1. 2. 3. Insoluble Residues(IR) Magnesium Oxide(MgO) Sulphuric Anhydride(SO3) 4. 5. Loss on Ignition(LOI) % % % % 3.0 Max 6.0 Max

2.0 Max. 2.5 Max.

2.5 Max when C3A<5 & 3.0 Max 2.75 Max. when C3A>5 5.0 Max 0.66-1.02 3.5 Max. 0.89Min.

Lime Saturation Factor % (LSF)

6. 7.

Alumina Iron ratio (A/F) Chloride (CI-)

% %

0.66 Min. 0.10 Max.

1.10 Min. 0.05 Max

B) PHYSICAL PROPERTIES 1. 2. Specific Surface Soundness (Expansion) a) By Le-Chatelier b) By Autoclave 3. Setting Time a) Initial Set b) Final Set 4. Compressive Strength a) 3 days MPa 23 Min. 32 Min. Minute 30 Min. Minute 600 Max. 70 Min. 250 Max. Mm % 10.0 Max. 0.8 Max. 3.0 Max. 0.2 Max m2/kg 225 Min. 280 Min.

b) 7 days c) 28 days

MPa MPa

33 Min. 43 Min.

42 Min. 55 Min.

Ordinary Portland Cement (OPC) 53

53 Grade Cement is a prime brand cement with a remarkably high C3S(Tri Calcium Silicate) providing long-lasting durability to concrete structures. ADVANTAGES Gives more flexibility to architects and engineers to design sleeker and economical sections. Develops high early strength so that form work of slabs and beams can be removed much earlier resulting in faster speed of construction and saving in centering cost. Produces highly durable and sound concrete due to very low percentage of alkalis, chlorides, magnesia and free lime in its composition. Almost a negligible chloride content results in restraining corrosion of concrete structure in hostile environment. Significant saving in cement consumption while making concrete of grades M15, M20 & M25 and pre-cast segments due to high early strength. Ideal Application High-rise Buildings, Residential, Commercial & Industrial Complexes Roads, runways, bridges and flyovers. Defense Constructions For heavy defense structures like Bunkers

Pre-stressed concrete structures BIS SPECIFICATIONS AND SDCC NORMS OF 53 GRADE OPC

Sr.No.

Description

Unit

Req.

as

per

IS- SDCC Norms

12269- 1987 A) CHEMICAL COMPOSITION

1.

Insoluble Residues(IR)

3.0 Max

2.0 Max.

2.

Magnesium Oxide(MgO)

6.0 Max

2.5 Max.

3.

Sulphuric Anhydride(SO3)

2.5 Max when C3A<5 & 2.75 Max. 3.0 Max when C3A>5 4.0 Max 3 Max.

4.

Loss Ignition(LOI)

on %

5.

Lime

Saturation %

0.80-1.02

0.90Min.

Factor (LSF) 6. Alumina ratio (A/F) 7. Chloride (CI-) % 0.10 Max. 0.05 Max Iron % 0.66 Min. 1.10 Min.

B) PHYSICAL PROPERTIES

1. 2.

Specific Surface Soundness (Expansion) a) By

m2/kg

225 Min.

280 Min.

Le- mm

10.0 Max.

3.0 Max.

Chatelier b) By Autoclave 3. Setting Time % 0.8 Max. 0.2 Max

a) Initial Set b) Final Set 4. Compressive Strength a) 3 days b) 7 days c) 28 days

Minute Minute

30 Min. 600 Max.

70 Min. 250 Max.

MPa MPa MPa

27 Min. 37 Min. 53 Min.

35 Min. 45 Min. 58 Min.

Portland Pozzolana Cement (PPC)

Concrete made with Portland Pozzolana Cement (PPC) is less vulnerable to sulphate attacks because its C3A is lower than 5% - thereby reducing the formation of Ettringite (expansive hydrates). Sulphate Resisting Cement is manufactured from a synthesis of different specific standard raw materials of high purity under strict supervision of an expert technical team. ADVANTAGES Complete assurance against Sulphate Attack. Enhanced life and durability of Structure under aggressive conditions. Progressive high compressive strength. Corrosion resistance of steel by preventing sulphate and chloride attack. IDEAL APPLICATIONS Ports, Harbors, Docks Dams exposed to saline and polluted water Construction activity in saline land Construction exposed to sea water, e.g. sea walls, break water, tetrapods Construction of sewage and drainage system Effluent treatment plants Chimney, cooling towers

 Chemicals industries, water storage, underground foundations, etc. SPECIFICATIONS OF PPC CEMENT AGAINST IS REQUIREMENT

Sr.No.

Description

Unit

Req. as per IS- SDCC Norms 12330 1988

A) CHEMICAL COMPOSITION 1. 2. 3. 4. 5. 6. 7. 8. 9. Insoluble Residues(IR) Magnesium Oxide(MgO) Sulphuric Anhydride(SO3) Loss on Ignition(LOI) Lime Saturation Factor (LSF) Alumina Iron ratio (A/F) Tricalcium Silicate (C3S) Tricalcium Aluminate (C3A) % C4AF+C3A % % % % % % % % % 4.5 Max 6.0 Max 2.5 Max 5.0 Max 0.66-1.02 5.0 Max. 25.0 Max 1.50 Max. 2.00 Max. 2.50 Max. 3.0 Max. 0.90-0.95Min. 4.5 Max. 24.5 Max.

B) PHYSICAL PROPERTIES 1. 2. Specific Surface Soundness (Expansion) a) By Le-Chatelier b) By Autoclave 3. Setting Time a) Initial Set b) Final Set Minute Minute 30 Min. 600 Max. 45 Min. 275Max. mm % 10.0 Max. 0.8 Max. 3.0 Max. 0.2 Max m2/kg 225 Min. 280 Min.

4.

Compressive Strength a) 3 days b) 7 days c) 28 days MPa MPa MPa 10 Min. 16 Min. 33 Min. 30Min. 38 Min. 52 Min.

Manufacturing Department Topcem Meghalaya cement Ltd (MCL), a company promoted by leading industrialists and Businessmen, intend to increase the capacity of its existing plant at Thangskai in District Jaintia Hills, Meghalaya, India from 900 TPD clinker to 2,600 TPD (0.858 MTPA) clinker along with a 18 MW captive thermal power plant and captive limetone mines including 33'45ha ML ' The plant is based on limestone deposits in and around Thangskai village' Pulverized coal will be used as fuel. About 59.269 ha of land is already available with MCL for the colony and the plant. The plant is already operational, only production capacity is to be increased. The Techno - Economic Feasibility Report (TEFR) for the project has been prepared by Holtec Consulting Private Limited' Gurgaon. Estimated project cost is Rs. 15,105 lakhs for cement plant and 8036.69 lakh for TPP. Prior Environmental clearance has been obtained and letter speciffing the Terms of Reference (TOR) has been issued by the state EAC vide their letter No SEAC I Misc.l2g dt 26-11-2008 for cement Plant expansion' letter No' SE,AC ll dt lTthDecembe r,2007 for Thermal Power Plant and letter No SE'AC/ Misc./9 dt 15-01-200g for amalgamation of both the TORs. A11 points of amalgamated TOR have been incorporated in the REIA which is now to be processed for Public Hearing. The terms of reference are addressed in the Environment Impact Assessment Report and the Environment Management Plan (EIA/EMP). These are in addition to the generic structure envisaged in Appendix III and Appendix IIIA of the EIA Notification dated 14th September 2006 issued by Government of India. The project area includes the core zone and buffe r zone(impact zone) extending upto 10 kms radius from the periphery of the core zone. Location and Communication : The location map of the area is shown in he study area of the proposed project falls in Survey of India Toposheet No. 83C/SW (Restricted) and is bounded by Latitu de 25" ll' 58.g2"N and longitude E 92" 22' 47.64" E' Road Link.. The plant site is at a distance of about I km from NH-44, the site is connected to all the states of north-east region through a Network of National and State Highways. The distances of major towns from the proposed project site are Khlierhat (23 km), Jowai (56 km), Shillong (125 km), Silchar (115 km) and Guwahati (250 km) .Ruit Link.' The nearest railway station is at Badarpur which is at about 78 km from the plant site by the road. Air Link: The nearest airport is at Shillong which is at about 125 km from the plant site. The airport at Guwahati is about 250 km from the site. Guwahati is connected to all the major cities.

Cement Plant: The envisaged plant expansion is from present capacity of 900 TPD to 2,600 TPD clinker. The clinkerisation factor is 1.545. Limestone required is 99.44%. Clay/Shale requirement is 0.4o/o., iron ore is 0.1 60/o. FueI Consumption is 850 Kcallkg of clinker. Calorific Value of Coal would be 5800 KcaVkg. Fuel Consumption is 14.66 %. Gypsum addition in OPC / PPC (existing cement grinding) is 2Yoll.5o/o The mines, crusher and coal mill would operate for 312 days while raw mill and kiln would operate from 330 days. Storoge.' Limestone Storage would be for 7 days, Claylshale for 30 days, Iron Ore for 30 days, Raw Meal Storage (Active) for 1 day, Clinker for 13 days a Coal for 9 days. Power Requirement And Source: The power demand of the plant, after the proposed expansion to 2,600 TPD, is estimated at about 15 MVA. Existing plant is fed from MESEB at 132 KV. It is proposed to increase the max contractual power demand from 10 MVA to 15 MVA. Power cuts are affected during peak hours, therefore captive power plant of 18 MVA is proposed to meet total plant requirement. Existing 6 No 1.5 MVA DG plant in case of power outage sets have been considered to supply power to the from the Grid. Water supply: The existing water requirement is 792.9 cum/day (680'6 industrial cum/day + 105.6 cum/day domestic +6.7 cum/day miscellaneous).The total water requirement for the proposed expansion (cement plant) is estimated at 500 M3lday and 2784 M3/day for the proposed CPP. Ultimate water requirement including all expansion activities will be 4076.9 M3/day' The additional water requirements will be met from the existing source Chynryntong - Umparti River located at anarea distance of about 4.1 km from the plant' Manpower: The manpower existing at plant site at present is 138 persons' Additional 94 persons will be required to meet the requirement. So the total manpower requirement will be 138+94:232.

SWOT ANALYSIS

Strengths: Double digit growth rate Cement demand has grown in tandem with strong economic growth; derived from:

-Growth in housing sector (over 30%) key demand driver; -Infrastructure projects like ports, airports, power projects, dam & irrigation projects -National Highway Development Programme -Bharat Nirman Yojana for rural infrastructure -Rise in industrial projects -Export potential also demand driver Capacity utilization over 90%

Weakness: Low value commodity Cement Industry is highly fragmented Industry is also highly regionalized Low value commodity makes transportation over long distances un-economical

Opportunities: Demandsupply gap Substantially lower per capita cement consumption as compared to developing countries (1/3 rd of world average) Per capita cement consumption in India is 82 kgs against a global average of 255 kgs and Asian average of 200 kgs. Additional capacity of 20 million tons per annum will be required to match the demand Limited green field capacity addition in pipeline for next two years, leading to favorable demand supply scenario

Threats: Rising input costs

Government intervention to adjust cement prices Possibility of over bunching of capacities in the long term as some of the players have already announced new capacities Transportation cost is scaling high; bottleneck due to loading restrictions

Coal prices climbing up; industry players say current shortage of coal in the country is estimated to be over 10 million tonnes.

Finance Department : The Finance Department of the company majorly comprises of : Strategic Finance Department Sales Department Purchase and Cost Department

The Company treats all its Financial Statements in the following ways : FINANCIAL STATEMENTS Financial statements are summaries of the operating, financing, and investment activities of a business. Financial statements should provide information useful to both investors and creditors in making credit, investment and other business decisions. And this usefulness means that investors and creditors can use these statements to predict, compare, and evaluate the amount, timing, and uncertainty of potential cash flows. In other words, financial statements provide the information needed to assess a company's future earnings and therefore the cash flows expected to result from those earnings. We will now discuss the four basic financial statements: the balance sheet, the income statement, the statement of cash flows, and the statement of shareholder's equity. ACCOUNTING PRINCIPLES AND ASSUMPTIONS The accounting data in financial statements are prepared by the firm's management according to a set of standards, referred to as generally accepted accounting principles (GAAP). The financial statements of a company whose stock is publicly traded must, by law, be audited at least annually by independent public accountants (i.e., accountants who are not employees of the firm). In such an audit, the accountants examine the financial statements and the data from which these statements are prepared and attest-through the published auditor's opinion-that these statements have been prepared according to GAAP. The auditor's opinion focuses on whether the statements conform to GAAP and that there is adequate disclosure of any material change in accounting principles. The financial statements are created using several assumptions that affect how we use and interpret the financial data. Transactions are recorded at historical cost. Therefore, the values shown in the statements are not market or replacement values, but rather reflect the original cost (adjusted for depreciation, in the case of depreciable assets). The appropriate unit of measurement is the

dollar. While this seems logical, the effects of inflation, combined with the practice of recording values at historical cost, may cause problems in using and interpreting these values. The statements are recorded for predefined periods of time. Generally, statements are produced to cover a chosen fiscal year or quarter, with the income statement and the statement of cash flows spanning a period's time and the balance sheet and statement of shareholders' equity as of the end of the specified period. But because the end of the fiscal year is generally chosen to coincide with the low point of activity in the firm's operating cycle, the annual balance sheet and statement of shareholders' equity may not be representative of values for the year.

Statements are prepared using accrual accounting and the matching principle. Most businesses use accrual accounting; where income and revenues are matched in timing such that income is recorded in the period in which it is earned and expenses are reported in the period in which they are incurred to generate revenues. The result of the use of accrual accounting is that reported income does not necessarily coincide with cash flows. Because the financial analyst is concerned ultimately with cash flows, he or she often must understand how reported income relates to a company's cash flows.

BALANCE SHEET

The balance sheet is a summary of the assets, liabilities, and equity of a business at a particular point in time-usually the end of the firm's fiscal year. 'l'he balance sheet is also known as the statement of financial condition or the statement of financial position. The values shown for the different accounts on the balance sheet are not purported to reflect current market values; rather, they reflect historical costs. Assets are the resources of the business enterprise, such as plant and equipment that are used to generate future benefits. If a company owns plant and equipment that will be used to produce goods for sale in the future, company can expect these assets (the plant and equipment) to generate cash inflows in the future. Liabilities are obligations of the business. They represent commitments to creditors in the form of future cash outflows. When a firm borrows, say, by issuing a long-term bond, it becomes obligated to pay interest and principal on this bond as promised. Equity, also called shareholders'equity or

stockholders'equity, reflects ownership. The equity of firm represents the part of its value that is not owed to creditors and therefore is left over for the owners. In the most basic accounting terms, equity is the difference between what the firms owns-its assets-and what it owes its cred itors-its liabilities.

ASSETS

There are two major categories of assets: current assets and non current assets, where non current assets include plant assets, intangibles, and investments. Assets that do not fit neatly into these categories may be recorded as either other assets, defened charges, or other non cunent assets.

CURRENT ASSETS

Current assets (also referred to as circulating capital and working assets) are assets that could reasonably be converted into cash within one operating cycle or one year, whichever takes longer. An operating cycle begins when the firrn invests cash in the raw materials used to produce its goods or services and cnds with the collection of cash for the sale of those same goods or services. For example, if Fictitious manufactures and sells candy products, its operating cycle begins when it purchases the raw materials for the products (e.g., sugar) and ends when it receives cash for selling the candy to retailers. Because the operating cycle of most businesses is less than one year, we tend to think of current assets as those assets that can be converted into cash in one year. Current assets consist of cash, marketable securities, accounts receivable, and inventories. Cash comprises both currency-bills and coins-and assets that are immediately transformable into cash, such as deposits in bank accounts. Marketable securities are securities that can be readily sold when cash is needed. Every company needs to have a certain amount of cash to fulfil immediate needs, and any cash in excess of immediate needs is usually invested temporarily in marketable securities. Investments in marketable securities are simply viewed as a short term place to store funds; marketable securities

do not include those investments in other companies' stock that are intended to be long term. Some financial reports combine cash and marketable securities into one account referred to as cash and cash equivalents or cash and marketable securities. Accounts receivable are amounts due from customers who have purchased the firm's goods or services but haven't yet paid for them. To encourage sales, many firms allow their customers to -buy now and pay later,l perhaps at the end of the month or within 30 days of the sale. Accounts receivable therefore represents money that the firm expects to collect soon.

NON CURRENT ASSETS Non current assets are assets that are not current assets; that is, it is not cxpected that non current assets can be converted into cash within an operating cycle. Non current assets include physical assets, such as plant and equipment, and non physical assets, such as intangibles. Plant assets are the physical assets, such as the equipment, machinery, and buildings, which are used in the operation of the business. We describe a firm's current investment in plant assets by using three values: gross plant assets' accumulated depreciation, and net plant assets. Gross plant and equipment, or gross plant assets, is the sum of the original costs of all equipment, buildings' and machinery the firm uses to produce its goods and services. Depreciation, as you will see in the next chapter, is a charge that accounts for the using up of an asset over the length of an accounting period; it is a means for allocating the asset's cost over its useful life. Accumulated depreciation is the sum of all the depreciation charges taken so far for all the company's assets' Net plant and cquipment, or net plant assets, is the difference between gross plant assets and accumulated depreciation. The net plant and equipment amount is hence the value of the assets-historical cost less any depreciation- according to the accounting books and is therefore often referred to as the book value of the assets. Intangible assets are the current value of non physical assets that represent long-term investments of the company. Such intangible assets include patents, copyrights, and goodwill. The cost of some intangible assets is amortized (-spread out[) over the life of the asset' Amortization is akin to depreciation: The asset's cost is allocated over the life of the asset; the reported value is the original cost of the asset, less whatever has been amortized' The number of years over which an intangible asset is amortized depends on the particular asset and its perceived useful life. Long-term investment in securities of other companies may be recorded at cost or market value, depending on the type of investment; investments held to rnaturity are recorded at cost,

whereas investments held as trading securities or irvailable for sale are recorded at market value. Whetherthe unrealized gains or losses affect earnings on the income statement depend on whether the securities are deemed tradine securities or available for sale.

LIABITLITIES

Liabilities, a firm's obligations to its creditors, are made up of current lialibilities, long-term liabilities, and defened taxes. current liabilities are obligations that must be paid within one operating cycle or one year, whichever is longer. Current liabilities include: Accounts payable, which are obligations to pay suppliers. They arise from goods and services that have been purchased but not yet paid. Accrued expenses, which are obligations such as wages and salaries payable to the employees of the business, rent, and insurance. Current portion of long-term debt or the current portion of capital leases. Only portion of long- term indebtedness-obligations extending beyond one year-due within the year. Short-term loans from a bank or notes payable within a year. The reliance en short-term liabilities and the type of current liabilities depends, in part, on the industry in which the firm operates.

LONG TERM LIABILITIES

Long-term liabilities are obligations that must be paid over a period bcyond one year. They include notes, bonds, capital lease obligations, and pcnsion obligations. Notes and bonds both represent loans on which the berrower promises to pay interest periodically and to repay the principal amount el'the loan. A lease obligates the lessee-the one leasing and using the leased asserro pay specified rental payments for a period of time. Whether the lease obligation is recorded as a liability or is expensed as lease payments made clepends on whether the lease is a capital lease or an operating lease.

DEFFERED TAXES

Along with long-term liabilities, the analyst may encounter another account, deferred taxes. Deferred taxes are taxes that will have to be paid to the federal and state governments based on accounting income, but are not due yet. Deferred taxes arise when different methods of accounting are used for financial statements and for tax purposes. These differences are temporary and are the result of different timing of revenue or expense recognition for financial statement reporting and tax purposes. The deferred tax liability arises when the actual tax liability is less than the tax liability shown for financial reporting purposes (meaning that the firm will be paying the difference in the future), whereas the deferred tax asset, mentioned earlier, arises when the actual tax liability is greater than the tax liability shown for reporting purposes.

EQUITY

Equity is the owner's interest in the company. For a corporation, ownership is represented by common stock and preferred stock' Shareholders' equity is also referred to as the book value of equity, since this is the value of equity according to the records in the accounting books' The value of the ownership interest of preferred stock is represented in financial statements as its par value, which is also the dollar value on which dividends are figured.

THE INCOME STATEMENT

An income statement is a summary of the revenues and expenses of a business over a period of time, usually one month, three months, or one year. This statement is also referred to as the profit and loss statement. It shows the results of the firm's operating and financing decisions during that time. The operating decisions of the company-those that apply to production and rnarketing-

generate sales or revenues and incur the cost of goods sold (also referred to as the cost of sales or the cost of products sold). The difference between sales and cost of goods sold is gross profit. Operating decisions also result in administrative and general expenses, such as advertising fees and office salaries. Deducting these expenses from gross profit leaves operating profit, which is also referred to as earnings before interest and taxes (EBIT), operating income, or operating earnings. Operating decisions take the firm from sales to EBIT on the income statement.

CASH FLOW STATEMENT

It is a statement, which measures inflows and outflows of cash on account of any type of business activity. The cash flow statement also explains reasons lbr such inflows and outflows of cash so it is a report on a company's cash flow activities, particularly its gperating, investing and financing activities.

FINANCIAL ANALYSIS

Financial analysis is a tool of financial management. It consists of the cvaluation of the financial condition and operating performance of a business lirlrr, an industry, or even the economy, and the forecasting of its future condition and performance. It is, in other words, a means for examining risk and expected return. Data for financial analysis may come from other areas within thc firm, such as marketing and production departments, from the firm's own irccountin g data, or from financial information vendors such as Bloomberg lrinancial Markets, Moody's Investors Service, Standard & Poor's Corporation, Iritch Ratings, and Value Line, as well as from government publications, such as t5c Federal Reserve Bulletin. Financial publications such as Business Week, liorbes, Fortune, and the Wall Street Journal also publish financial data (concerning individual hrms) and economic data.

Who uses these analyses?

Financial statements are used and analyzedby a different group of parties, tftcse groups consists of people both inside and outside a business. Generally, thcse users are:

A. Internal Users: are owners, managers, employees and other parties who are directly connected with a company: l. Owners and managers require financial statements to make important brrsiness decisions that affect its continued operations. Financial analysis is then pcrformed on these statements to provide management with more detailed inlbrrnation. These statements are also used as part of management's report to its stockholders, and it form part of the Annual Report of the company.

2. Employees also need these reports in making collective bargaining agreements with the management, in the case of labour unions or for individuals in discussing their compensation, promotion and rankings.

B. External Users: are potential investors, banks, government agencies and other parties who are outside the business but need financial information about the business for numbers of reasons.

l. Prospective investors make use of financial statements to assess the viability of investing in a business. Financial analyses are often used by investors and is prepared by professionals (financial analysts), thus providing them with the basis in making investment decisions.

2. Financial institutions (banks and other lending companies) use them to decide whether to give a company with fresh loans or extend debt securities (such as a long- term bank loan).

3. Government entities (tax authorities) need financial statements to ascertain the propriety and accuracy of taxes and duties paid by a company.

4. Media and the general public are also interested in financial statements of soffre companies for a variety of reasons.

ACCOUNTING POLICIES AND NOTES ON ACCOUNTS

1. Basis of Accounting:

The financial statements are prepared and presented under the historical cost convention on accrual basis of accounting in accordance with the Generally Accepted Accounting Principles (GAAP) in India and comply in all material aspects with the Accounting Standards (AS) notified under the Companies (Accounting Standard) Rules, 2006 (as amended), to the extent applicable, other pronouncements of the Institute of Chartered Accountants of India and with the relevant provisions of the Companies Act, 1956.

2. Use of estimates: The preparation of financial statements in conformity with the GAAP requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements, the reported amounts of revenues and expenses during the reported period and the disclosures relating to contingent liabilities as of the date of the financial statements. Any revision to accounting estimates is recognised prospectively in the current and future periods. Difference between actual results and estimates are recognised in the period in which the results are known or materialise.

3. Fixed Assets:

Fixed assets, whether tangible or intangible, are stated at cost less accumulated depreciation / impairment loss (if any), net of Modvat / Cenvat (wherever claimed). The cost of fixed assets includes taxes, duties, freight and other incidental expenses incurred in relation to their acquisition and bringing the assets for their intended use. Advances paid towards the acquisition of fixed assets outstanding at each balance sheet date and the cost of fixed assets not ready for their intended use before such date are disclosed under Capital

Work-in-Progress.Fixed Assets held for disposal are stated at lower of net book value and net realisable value.

4. Treatment of expenditure during construction period:

Expenditure / Income, during construction period is included under Capital-Work-in-Progress and the same is allocated to the respective Fixed Assets on the completion of their construction.

5. Foreign Currency Transactions:

(i) Transactions denominated in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. Monetary assets and liabilities denominated in foreign currency at the balance sheet date are translated at the year-end rates.

(ii) In respect of Forward exchange contracts, premium or discount, being the difference between the forward exchange rate and the exchange rate at the inception of contract is recognised as expense or income over the life of the Contract. (iii) Exchange difference including premium or discount on forward exchange contracts, relating to borrowed funds, liabilities and commitments in the foreign currency for acquisition of fixed assets, arising till the assets are ready for their intended use, are adjusted to cost of fixed assets. Any other exchange difference either on settlement or translation is recognised in the Profit and Loss account.

(iv) Investments in equity capital of companies registered outside India are carried in the Balance Sheet at the rates at which transactions have been executed.

6. Derivatives:

Financial Derivative Instruments Derivative instruments are used to hedge risk associated with foreign currency fluctuations and interest rates. The derivative contracts are closely linked with the underlying transactions and are intended to be held to maturity. These are accounted on the date of their settlement and realised gain/loss in respect of settled contracts is recognised in the Profit and Loss Account.

Commodity Hedging The realised gain/loss in respect of commodity hedging contracts, the pricing period of which has expired or contracts cancelled during the year are recognized in the Profit and Loss Account. However, in respect of contracts, the pricing period of which extends beyond the Balance Sheet date, suitable provision for likely loss, if any, is made in the accounts

7. Investments:

Investments are classified into long term investments and current investments. Long-term investments are carried at cost after deducting provisions made, if any, for diminution in value of investments other than temporary, determined separately for each individual investment. Current investments are carried at lower of cost and fair value, determined separately for each individual investment.

8. Inventories: Inventories are valued at the lower of weighted average cost and estimated net realisable value except waste/scrap which is valued at net realisable value. Cost of finished goods and process stock includes cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

9. Depreciation and Amortisation:

Depreciation is charged in the Accounts on the following basis:

(A) Tangible Assets:

(i) Depreciation is provided on the straight-line basis at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 except for some of assets at the rates based on the useful life of the assets as determined by the management, which are higher than the rates specified in Schedule XIV to the Companies Act, 1956, as stated under: (a) Company Vehicles other than those provided to the employees at 20% per annum. (b) Roads, Culverts, Walls, Buildings etc. within factory premises at 3.34% per annum. (c) Computer and Office Equipments at 25% per annum (d) Furnitures and Fixtures 7 years (e) Mobile Phones 3 years (f) Motor Cars given to the employees as per the Companys Scheme are depreciated over the Scheme period.

(ii) Assets acquired up to September 30, 1987, are depreciated at the rates prevailing at the time of acquisition.

(iii) The value of leasehold land and mining lease is amortised over the period of the lease.

(iv) Assets not owned by the Company are amortised over a period of five years or the period specified in the agreement.

(v) Expenditure incurred on Jetty is amortised over the period of the relevant agreement such that the cumulative amortisation is not less than the cumulative rebate availed by the Company.

(vi) Depreciation on additions is provided on a pro-rata basis from the month of installation or acquisition and in case of project from the date of commencement of commercial production, while depreciation on deductions/disposals is provided on a pro-rata basis upto the month preceding the month of deductions/disposals.

(B) Intangible Assets: Specialised softwares are amortised over a period of 3 years.

10. Impairment of Assets:

The carrying amounts of assets are reviewed at each balance sheet date if there is an indication of impairment based on the internal and external factors. An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable amount. An impairment loss, if any, is charged to the Profit and Loss Account in the year in which the asset is identified as impaired. Reversal of impairment loss recognised in prior years is recorded when there is an indication that impairment loss recognised for the asset no longer exists or has been decreased.

11. Employee Benefits:

(i) Short term employee benefits

Short term employee benefits are recognised as an expense on accrual at the undiscounted mount in the Profit and Loss Account.

(ii) Defined Contribution Plan Contributions payable to recognised provident fund and approved superannuation scheme, which are defined contribution plans, are recognised as expense in the Profit and Loss Account; as they are incurred. Contributions as specified by the law are paid to the provident fund set up as irrevocable trust by the holding company. The Company is generally liable for annual contribution and any shortfall in the fund assets based on the government specified minimum rates of return and recognises such contribution and shortfall, if any, as an expense in the year incurred.

(iii) Defined Benefit Plan The obligation in respect of defined benefit plans, which cover Gratuity, Pension and Post retirement medical benefits, are provided for on the basis of an actuarial valuation, using the projected unit credit method, at the end of each financial year. Gratuity is funded with an approved fund. Actuarial gains/losses, if any, are recognised immediately in the Profit and Loss Account. Obligation is measured at the present value of estimated future cash flows using a discount rate that is based on the prevailing market yields of Government of India securities as at the balance sheet date for the estimated term of the obligations.

(iv) ther Long Term Benefits Long-term compensated absences are provided for on the basis of an actuarial valuation, using the projected unit credit method, at the end of each financial year. Actuarial gains/ losses, if any, are recognised immediately in the Profit and Loss Account.

12. Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of a qualifying asset are capitalised as part of the cost of such asset till such time the asset is ready for its intended use. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are recognised as an expense in the period in which they are incurred. The difference between the face value and the issue price of Discounted Value Non-Convertible Debentures, being in the nature of interest, is charged to the profit and loss account, on a compound interest basis determined with reference to the yield inherent in the discount.

13. Taxation:

Current Tax is measured on the basis of estimated taxable income for the current accounting period and tax credits computed in accordance with the provisions of the Income Tax Act, 1961. Deferred Tax resulting from timing differences between book and taxable profit for the year is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. Deferred tax assets are recognised and carried forward only to the extent that there is reasonable certainty, except for carried forward losses and unabsorbed depreciation which are recognised based on virtual certainty, that the assets will be realised in future.

14. Revenue Recognition:

(i) Sales Revenue is recognised on transfer of significant risks and rewards of ownership of the goods to the buyer. Sales are net of Sales Tax, VAT, trade discounts, rebates and returns but includes excise duty.

(ii) Income from services is recognised as they are rendered, based on agreement/arrangement with the concerned parties.

(iii) Dividend income on investments is accounted for when the right to receive the payment is established. Interest income is recognised on accrual basis.

(iv) Export Incentives, insurance, railway and other claims, where quantum of accruals cannot be ascertained with reasonable certainty, are accounted on acceptance basis.

15. Mines Restoration Expenditure:

The Company provides for the estimated expenditure required to restore quarries and mines. The total estimate of restoration expenses is apportioned over the estimate of mineral reserves and a provision is made based on minerals extracted during the year. The total estimate of restoration expenses is reviewed periodically, on the basis of technical estimates.

16. Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognised when there is a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. These are reviewed at each Balance Sheet date and adjusted toreflect the current best estimate.Contingent Liabilities are not recognised but are disclosed and Contingent Assets are neither recognised nor disclosed, in the financial statements.

17. Employees Share based payments:

The Company follows intrinsic value method for valuation of Employees Stock Options. The excess of the market price of shares at the time of grant of options, over the exercise price to be

paid by the option holder is considered as employee compensation expense and is amortised in the Profit and Loss account over the period of vesting, adjusting for the actual and expected vesting.

18. Earnings Per Share:

The basic Earnings Per Share (EPS) is computed by dividing the net profit after tax for the year attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, net profit after tax for the year attributable to the equity shareholders and the weighted average number of equity shares outstanding during the year is adjusted for the effects of all dilutive potential equity shares.

19. Government Grants and Subsidies:

(i) Government grants and subsidies are recognised when there is reasonable assurance that the Company will comply with the condition attached thereto and that the grants will be received.

(ii) Capital Government Grants or Subsidies relating to specific fixed assets are deducted from the gross value of the respective fixed assets and capital grants for projects are credited to Capital Reserve.

(iii) Revenue Government Grants or Subsidies relating to an expense item are recognised as income over the period to match them on a systematic basis to the costs or deducted from related expenses.

20. Segment Reporting Policies:

Primary Segment is identified based on the nature of products and services, the different risks and returns and the internal business reporting system. Secondary segment is identified based on geography in which major operating divisions of the Company operate.

21. Research and development expenditure:

Revenue expenditure on research and development is expensed as incurred. Capital expenditure incurred on research and development is capitalised as fixed assets and depreciated in accordance with the depreciation policy of the Company.

22. Operating lease:

Leases where significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases and lease rentals thereon are charged to the Profit and Loss Account.

Learning Outcomes My Summer Training program or Internship program in Meghalaya Cements Ltd provided me with huge opportunities and a vast growth in knowledge of Manufacturing Sector .