COMPANY PROFILE Nesting amidst the lush green paddy fields, under a canopy of majestic coconut trees, beside

the intricate patterns woven by canals, is Travancore Cements Ltd, - the house of White Cement. Bustling with activity against the sylvan landscape, it is a place where Art and Nature merge and mingle. The Travancore Cements Limited was incorporated in the year 1946. The year of commencement of business was also 1946. The company started manufacture of Grey Cement in the year 1949. The licensed capacity of the plant was 50,800 tones of Cement per annum. During 1959, the company diversified into the production of white Portland Cement. The installed capacity for the production of White Cement is 30000 tonnes per annum. Till 1974, the Company was manufacturing both White Cement and Grey Cement in the same plant, distributing the production of the two, over certain periods in a year. Since 1974, the company manufactured White Cement alone, as the demand for White Cement went up. During the last 60 years of its existence, TCL has diversified its activities to related areas by adding ''Vembanad' brand ordinary portland cement, 'Super Shelcem' brand Cement Paint and 'Shelprime' dry Cement Primer besides 'Sheltex' Acrylic Emulsion Paint for interiors and exteriors to its products range. The Travancore Cements Limited is the only manufacturer, perhaps in the whole world, producing White Cement from a raw material other than conventional limestone. The main raw material of TCL is lime shell, which is dredged out of Vembanad Lake, one of the backwaters of Kerala. As it does not contain any magnesium oxide, the White Cement made out of lime shell is highly durable and superior in quality. * The Company has taken the ISO 9002 Certification during the year 2000. During the year 2003 it switched over to ISO 9001:2000 certification. Following are the milestones in the history of TCL

Started production of Grey Cement in August 1949. Started production White Cement in 1959 Grey Cement production stopped in 1976. Diversified into Cement Paint production in 1977. Celebrated Silver Jubilee in 1972. Became a Government Company in April 1989. Celebrated Golden Jubilee in 1997. Dry Cement Primer 'Shelprime' production started in January 2000. Acrylic Emulsion Paint for exterior & Interior. Sheltex launched in April 2000. Started production of 'Vembanad' 43 grade OPC in September 2000.
* ISO 9001:2000 certification received for the Company during December 2003. The Cement Plant of TCL is situated on the bank of Kodoor River and on the side of the State Highway M.C. Road, 4 Km away from the town of Kottayam in Kerala.

About Us
Nesting amidst the lush green paddy fields, under a canopy of majestic coconut trees, beside the intricate patterns woven by canals, is Travancore Cements Ltd, - the house of White Cement. Bustling with activity against the sylvan landscape, it is a place where Art and Nature merge and mingle. The Travancore Cements Limited was incorporated in the year 1946. The year of commencement of business was also 1946. The company started manufacture of Grey Cement in the year 1949. The licensed capacity of the plant was 50,800 tones of Cement per annum. During 1959, the company diversified into the production of white Portland Cement. The installed capacity for the production of White Cement is 30000 tonnes per annum. Till 1974, the

Company was manufacturing both White Cement and Grey Cement in the same plant, distributing the production of the two, over certain periods in a year. Since 1974, the company manufactured White Cement alone, as the demand for White Cement went up.

Warehouse / Production Capacity

The installed capacity for the production of White Cement is 30000 tonnes per annum

Memberships / Affiliations
* The Company has taken the ISO 9002 Certification during the year 2000. During the year 2003 it switched over to ISO 9001:2000 certification.

Name : THE TRVANCORE CEMENTS LTD. Postal Address: NATTAKOM, KOTTAYAM KERALA- 686 013 INDIA Country/ State: India / Kerala District / Taluk: Kottayam Panchayat: Nattakom Exact location: Four Kms away from Kottayam town and half Km. away from Main Centre road (State Highway 1) Convenient Railway Station: Kottayam Bus Station: Kottayam Bus stop: CEMENT JUNCTION en route to Changanassery from Kottayam Water Transport facility: Located by the side of Kodoor river which leads into the Venmbanad lake and National Water way III. (Direct water transport facility to Cochin Port available). Nearest Airport: NEDUMBASSERY Nearest Seaport: COCHIN Ownership: A Govt. of Kerala Undertaking

Existing Product Range: Cement Division ' Vembanad' White Cement Paints Division ' Super Shelcem ' Cement paint Technical details about our products WHITE CEMENT Vembanad White Portland cement is manufactured from the nature's gift of rare raw materials which are unique in quality and consistant in purity. Lime shell the purest form of Calcium Carbonate in nature, White clay, White Silica sand and Crystal Gypsum are the raw materials. Technology used F. L. Smidth & Company, Denmark, conforms IS 8042 E 1976 specification. Outstanding Qualities of Vembanad Brand White Cement

strength: At the end of the first day, the strength exceeds what is specified to acquire at the end of the .third day as per BIS specifications.

properties. Mosaic tile,.Cement Primer, Cement based putty. PAINT PRODUCTS SUPER SHELCEM ( Cement Paint ) Super Shelcem is a technologically unique formulation with the most durable "Vembanad" White Cement. It contains a high percentage of light fast pigments which help colour retention. It contain more White Cement than any other Cement Paint in the country. Super Shelcem does not rub, flake or peel off and can be washed. Is unaffected by normal climatic conditions and protects the wall against fungi growth. Ideal for coating on concrete, asbestos, cement sheets, fibre boards or any Cement surface. Depending on the surface a coverage of 7 to 10 Sq.m./kg for two coats I achievable. Direction for use a. Clean the surface thoroughly. b. Previous lime wash, fungal growth, scales etc. on the walls should be completely removed before painting. c. For better surface finish, apply Cement based putty. d. Wet the surface. e. For Freshly plastered surface apply cement based putty. f. Recommended paint to water ratio is 1:1 ( One part of water for one part of Super Shelcem). g. Do not use saline water.

h. Make a thick paste of the paint by adding water little by little. i. Do not pour excess water into the paint. j. Add water to the paint and not the paint to water. k. Can apply the second coat after 4 hours. l. Deep shades like Brick red, Nut brown, Golden brown, Dark grey etc. should be properly cured after the first and second coats. m. Use of dark shades are not recommended over area exposed to direct sunlight and rain. n. Two coats of paint film are necessary for better surface finish and shade clarity. VEMBANAD WALL PUTTY. Vembanad Wall putty is a dry powder putty with Vembanad White Cement as the base. Due to the low content of MgO in Vembanad White cement, the putty when applied on the cement plastered wall and ceilings will ensure durability, extra coverage and smooth finish. The product will have the same stringent quality of all our other products. One or two coats of Vembanad white cement is recommended to be applied on the newly plastered wall before Vembanad Wall putty is applied. However Vembanad Wall putty can be applied on freshly plastered surface also. Outstanding qualities of Vembanad Wall Putty.

The base of our wall putty is time tested Vembanad brand White cement Our products go through the strictest quality test Quality is the hallmark of our Company It has a unique formulation. It has more coverage than any other dry wall putty in the market. Its binding property is based on the strength of Vembanad White Cement Due to low MgO content of Vembanad White cement, the durability of Vembanad wall putty is more. Available in 20Kg and 5 Kg packing.

How to apply.

Clean the surface thoroughly. Do not wet the surface too much before putty is applied. For better surface finish, apply atleast coat of Vembanad White Cement. For new surface ensure all cracks, voids are patched-up before putty application. Mix Vembanad Wall putty with approximately 40% water by volume. Mix vigorously 5- 10 minutes for getting smooth putty paste. Apply 1st Coat uniformly with putty blade. Apply 2nd coat after the 1st coat is completely dried. Limit the total thickness of 2 coats to 1.5mm

Allow complete drying and then use fine emery paper to remove application mark if any.
28. THE TRAVANCORE CEMENTS LIMITED I Date of incorporation 9th October, 1946 II Address- Registered Office Nattakom P.O

Kottayam 686 013 III Phone, Gram, Telex, Fax, 0481 2361177, TRAVCEMENT, 088 214 TCL IN, Fax: 0481-2362354 E-mail tclktm@sancharnet.in IV Administrative Dept. (Under Govt.) Industries Department V Name of Chairman Shri.P.H. Abdul Salam Haji VI Name of Managing Director Shri. Jacob Joseph VII Present Activities Manufacture and sale of White Cement and Cement Paint VIII Manpower as on 31-3-05 No. Average Emoluments per person (Rs. per month) a. Workers (all non-supervisory 369 7815 employees in factory, office and field) b. Supervisory Staff (in factory office and field) 182 9607 c. Executives 20 16052 d. Senior Executives (Heads of 4 23554 department and above) Total 575 2002-03 2003-04 2004-05 IX Bonus a. Payable (%) 8.33 8.33 8.33 b. Paid (%) 8.33 8.33 8.33 X Financial Position (Rs.in lakhs) A. Liabilities

1. Capital a. Authorised capital 100.00 100.00 100.00 b. Paid up capital 50.00 50.00 50.00 2. Reserves & Surplus a. Retained earnings 687.00 698.00 698.00 b. Other reserves 159.00 67.00 67.00 3. Long term Loans - - 4. Current liabilities & provisions a. Sundry creditors 202.00 149.00 191.00 b. Outstanding expenses - - c. Other current liabilities 500.00 509.00 603.00 Total 1598.00 1473.00 1609.00 5. a. Fixed assets:Gross Block 829.00 830.00 826.00 b. Less: Depreciation 678.00 698.00 709.00 c. Net fixed assets 151.00 132.00 117.00 d. Capital work in progress 10.00 10.00 10.00 6. Investments 1.00 1.00 1.00 7. Current assets a. Cash & Bank balance 320.00 129.00 59.00b. Sundry debtors 76.00 99.00 34.00 c. Advances 251.00 244.00 235.00 d. Accrued income 7.00 - e. Stock (i) Raw materials 121.00 122.00 134.00 (ii) Semi-finished goods 245.00 237.00 239.00 (work -in-process)

(iii) Finished goods 186.00 74.00 101.00 (iv) General stores & spares 229.00 208.00 198.00 8. Miscellaneous expenditure not written off/adjusted a. Preliminary expenses 1.00 1.00 1.00 b. P&L Account (Accumulated Loss, if any) - 216.00 480.00 Total 1598.00 1473.00 1609.00 C. Other Details 1. Share distribution(%) a. State Govt. 51.00 51.00 51.00 b. Public 49.00 49.00 49.00 Total 100.00 100.00 100.00 2. Net worth 895.00 598.00 334.00 3. Capital employed 894.00 597.00 333.00 4. Capital invested 50.00 50.00 50.00 5. Working capital 733.00 455.00 206.00 (Current assets - Current liabilities) XI Working results: (Rs. in Lakhs) 1. Income a. Sales/Service charges 2936.00 2789.00 2779.00 b. Other Income 43.00 56.00 10.00 c. Increase/decrease in stock of 116.00 -119.00 29.00 finished goods & work-in-process Total 3095.00 2726.00 2818.00 2. Expenditure

a. Raw materials, chemicals etc. consumed 295.00 206.00 186.00 b. Power, fuel, and water charges 992.00 838.00 902.00 c. Excise duty 365.00 325.00 329.00 d. Other expenses 598.00 555.00 601.00 e. Personnel expenses 722.00 742.00 776.00 f. Interest & Bank Charges 10.00 12.00 9.00 g. Selling & distribution expenses 245.00 272.00 220.00 h. Administration expenses 69.00 56.00 55.00 i. Depreciation 23.00 19.00 15.00 Total 3319.00 3025.00 3093.00 Operating profit/loss(+/-) -224.00 -299.00 -275.00 Prior period adjustment - 3.00 10.00 Net Profit/Loss (+/-) -224.00 -296.00 -265.00 XII Taxes & duties: a. Excise Duty 365.00 325.00 329.00 b. C S T 3.00 3.00 1.00 c. Sales Tax 393.00 365.00 376.00XIII Dividend Nil Nil Nil XIV Long Term Loans Nil Nil Nil XV Interest charges on term loans Nil Nil Nil XVI Statutory dues as on 31-03-05 Nil Nil Nil XVII Production: (Rs. in lakhs) 2003-04 Products Unit Capacity Budgeted Production % of Capacity Sl. Licensed Installed production during the year utilised No. Qty. Value Qty. Value Licensed Installed

i. White Cement MT 50800 30000 30000 3004.00 23123 2305 46.00 77.00 ii. Cement Paint MT 6000 1050 1800 422.00 1542 360 26.00 147.24 2004-05 Products Unit Capacity Budgeted Production % of Capacity Sl. production during the year utilised No. Licensed Installed Qty. Value Qty. Value Licensed Installed i. White Cement MT 50800 30000 30000 3122.00 23965 2494.00 47.00 80.00 ii. Cement Paint MT 6000 1050 1800 424.00 1340 316.00 22.00 128.00 XVIII Sales (Rs. in Lakhs) 2003-04 Sl. Budgeted sales Actual sales No. Products Unit Qty Value Qty. Value 1. White Cement MT 30000 3004 24217 2414.00 2. Cement Paint MT 1800 422 1604 375.00 Total 3426 2789.00 2004-05 Sl. Budgeted sales Actual sales No. Products Unit Qty Value Qty. Value 1. White Cement MT 30000 3122 23021 2479.00 2. Cement Paint MT 1800 424 1256 296.00 Total 3546 2775.00 XIX Financial / Operating ratios 2002-03 2003-04 2004-05 a. Current ratio 2.04:1 1.69:1 1.26:1 b. Receivables to sales(in months) 0.31 0.43 0.15 c. Stock of finished goods to sales (in months) 0.76 0.32 0.44

d. Stock of raw materials to consumption (in months) 4.92 7.11 8.65 e. Consumption to sales (%) 10.05 7.39 6.69 f. Net profit to sales (%) -7.63 -10.61 -9.54 g. Return on investment (%) -25.06 -49.58 -79.58 XX Status of Accounts a. Year up to which Accounts 2004-05 have been finalised by the company b. Year up to which audit is complete 2003-04 XXI Employee Development: 2002-03 2003-04 2004-05 a. Training(i) Budget provision (Rs.) Not separately accounted (ii) Actually spent (Rs.) b. No.of persons sent for 4 4 external training programmes c. No.of in-house programmes 11 2 d. No. of persons covered in-house programmes 172 69 XXII Income-tax Benefits/Reduction/Relief a) Have you initiated any activity or project during the year that would result in income tax benefits/reduction/ No relief for the company? XXIII Summary of Performance During the year under review, the production of white cement in TCL has marginally increased but that of cement paint has reduced to 1340 MT as compared to the production of 1542 MT during the previous year. The turnover of the Company has also come down to Rs.2779 lakhs as against the turnover of Rs.2789 lakhs during the year 2003-04. However, the net

loss of the Company has come down to Rs.265 lakhs as compared to Rs.296 lakhs during the previous year. It is reported that the cost of production has increased due to hike in oil prices, furnace oil contributing about 60% of the production cost. The Company is also under threat due to problems in raw materials availability. The audit of accounts of the Company is complete upto 2003-04.
Cement raw materials industry introduction:
In cement production process, people usually take limestone and clay as the main raw materials. Through crushing, ingredients and fine grinding, these raw materials (limestone and clay) are made into cement raw meal and calcined into cement clinker after fed into cement kiln. By adding appropriate amount of gypsum or other additives, the cement clinker will be then grinded into cement by powder grinding mills. Before being used to produce cement, the limestone must be firstly pulverized into 200mesh ~ 325mesh.