Your Directors are pleased to present their Thirty Fifth Report together with theaudited financial statements of the Company for the year ended 31st March2016.
| || ||Rs. in Lakhs |
| || |
|Particulars || |
|As on |
| ||31-03-2016 ||31-03-2015 ||31.03.2016 |
|Revenue from Operations (Net) ||61827.46 ||54483.10 ||75100.83 |
|Other Income ||3172.39 ||36626.48 ||649.11 |
|Total Revenue ||64999.85 ||91109.58 ||75749.94 |
|Earnings before Interest tax Depreciation and Amortization (EBITDA) ||12427.09 ||42265.57 ||12808.44 |
|Finance costs ||2903.49 ||2308.23 ||4176.67 |
|Depreciation ||2336.76 ||2150.47 ||3364.88 |
|Profit before Tax ||7186.84 ||37806.87 ||5266.89 |
|Total of tax expenses ||2211.05 ||8141.70 ||656.55 |
|Profit after Tax ||4975.79 ||29665.17 ||4610.34 |
|Add : Profit brought forward from the previous year ||36258.03 ||8211.30 ||36258.03 |
|Profit available for appropriation ||41233.82 ||37876.47 ||40868.37 |
|Appropriations: || || || |
|Less: Dividend ||869.40 ||1304.10 ||869.40 |
|Less: Tax on Proposed Dividend on Equity Shares ||176.99 ||262.37 ||176.99 |
|Less: Additional Depreciation on account of adjustment as per Companies Act 2013 ||734.86 ||51.97 ||734.86 |
|Total Appropriations ||1781.25 ||1618.44 ||1781.25 |
|Balance carried to Balance Sheet ||39452.57 ||36258.03 ||39087.12 |
|Earnings Per Share (Basic and Diluted) (Rs.) ||28.62 ||170.61 ||26.51 |
An interim dividend at Rs.5/- per share (50%) on the 17388014 equity shares ofRs.10/- each was paid for the year 2015-16 and no further dividend has been recommendedfor the said year.
Transfer to reserves
No transfer to reserves is proposed and accordingly the entire balance available in theProfit and Loss Account is retained in it.
There was no change in the share capital of your company during the year under report.
Management Discussion Analysis
To avoid repetition in Directors Report and the Management Discussion Analysis Reportthe information under these reports as a composite summary of the performance of thevarious aspects of the business of the company is furnished below.
Immediately after the bifurcation of the erstwhile state of Andhra Pradesh there was alot of hope for early revival of the cement industry in Telangana and Andhra Pradesh asthe construction activities in these states were expected to pick up pushing up thedemand for cement. As the plans announced by the State Governments to boost theinfrastructure in their respective states are still in early stages demand for cement hasnot yet picked-up in a big way in these states. As a result the industry continues toface challenges with pricing pressure and weak demand.
Given the above constraints the performance of the company during the year 2015-16 interms of production and sale of cement and average net sales realization per ton as givenbelow is satisfying:
|Particulars ||2015-16 ||2014-15 |
|Cement Production in MTs ||1517859 ||1551598 |
|Cement Sales in MTs ||1517112 ||1550098 |
|Average Net Sales Realization per MT (Rs.) ||3174 ||2904 |
|Total Revenue ( Rs. In lakhs) ||65000 ||91109 |
During the year your company sold 1517112 MTs of cement with an average netrealization (ANR) of Rs.3174/- per MT which was higher by 9.30% over the previousyears ANR. During the year your company earned a net revenue of Rs.65000 lakhs asagainst Rs.91109 lakhs in the previous year which included the sum of Rs.34900 lakhsrealised from the sales of its equity investments held in its erstwhile Joint Venture.
Subsidiaries Joint Ventures or Associate Companies
As you are aware your Company has since acquired the entire equity stake in BMMCements Limited which has its cement plant of 1.00 Million MTs per annum capacity and acoal based captive power plant of 25 MW capacity in Gudipadu Village in AnanthapurDistrict A.P.
This wholly owned subsidiary prior to its take over by your company was operating ata very low capacity due to inter-alia out-sourcing lime stone at high cost for itscement production as it was yet to obtain the permission to extract the lime stone fromits captive mines. With the requisite mining permission having since been obtained by thesaid subsidiary enabling it to utilize the limestone available from its captive mines itscapacity utilization which has already shown a marked improvement is expected to improvefurther. To meet the immediate funds requirement of this subsidiary to support itsoperations at the current level as well as to enable it to strengthen its long term fundsrequirements your company has extended financial assistance to it in the form of loansand furnished a corporate guarantee for the debentures issued by the said subsidiary tothe International Finance Corporation details of which have been provided in theFinancial statements.
The cement produced by this subsidiary is sold under the brand name "SAGAR".As this subsidiary further consolidates itself and improves upon its operations theinvestments made by your company in this subsidiary will prove to be beneficial to yourcompany.
Your Company does not have any Joint Ventures or Associate Companies.
Statement containing salient features of the financial statement ofsubsidiaries/associate companies/joint ventures in form AOC 1 are given in Annexure-1.
Grinding Unit in Bayyavaram
Demand for cement is expected to pick up at a faster rate in Odisha West Bengal and inthe Vizag region of Andhra Pradesh where the focus is likely to be more on theinvestments in infrastructure sector. The identification of Vishakhapatnam and Kakinada inAndhra Pradesh and Bhubaneswar in Odisha for development as smart cities underthe Prime Ministers Smart Cities Mission would give further push to thedemand for cement in these regions. With a view to catering to the markets in these areasyour Company plans to acquire a grinding unit of 181500 MT capacity at Bayyavaram inVisakhapatnam District of A.P. and to expand its capacity to 0.3 million tonnes at a totalcost of Rs.67 crores. As the discussions pertaining to the above acquisition are still inthe primary stage further details thereon will be shared with you in due course. Thesuccessful implementation of this proposal would enable your company to transport thesurplus clinker available from its plant in Mattampally to Bayyavaram for grinding it ascement to meet the demand in the above said markets.
Opportunities and threats:
Constraints on inputs:
The cement industry is a highly energy intensive sector. Energy along with other rawmaterials mainly comprising coal and lime stone forms the most critical component in themanufacture of cement. While your company does not face any problems with respect to theavailability of limestone it attaches high priority to keep its energy cost which formspart of significant portion of input costs to the minimum. This is sought to be achievedamong other means by ensuring an optimum combination in the consumption of indigenouscoal and imported coal which is relatively cheaper. Your Company is setting up a wasteheat recovery plant at its unit in Mattampally at a cost of Rs.65.23 Crores to becompleted by October 2017 which on its completion would contribute to the furtherreduction in the energy cost.
However logistics continues to be the main area of concern with the distribution costremaining a significant component of the cost structure.
In this connection your directors are pleased to inform you of the completion of therailway siding project which became operational during the fourth quarter of the year2015-16. This facility will help your company not only in reaching out to newer marketsbut also in the absence of any steep hike in fuel price in optimizing the overallfreight cost.
Housing sector which accounts for 60 to 70 % of cement demand is yet to pick-up in abig way both in Telangana and Andhra Pradesh which are the major markets for yourcompany. The initiatives by the governments like Smart Cities Mission willhelp the construction real estate infrastructure and cement sectors in due course.However it will be some time before the cement industry really sees any significantrevival in demand in these states.
Telangana wherein your Companys plant is located has easy access to bothKarnataka and Maharashtra. While the recent acquisition of BMM Cements Limited will enableyour company to reach out to markets in Karnataka and parts of Tamil Nadu the proposal toacquire a grinding unit in Bayyavaram in Vishakhapatnam District in A.P. will enable itto spread its marketing network to southern parts of Odisha and eastern parts of thecountry.
Impact of entry of global players:
The Indian cement industry with its huge potential continues to attract the entry ofglobal cement majors and encourages the strengthening of production bases by existingcompanies. This may lead to a substantial part of the cement capacity being controlled bya few players. Sagar Cements proposes to meet some of the challenges posed by thisdevelopment by focusing on cost reduction and by further improving its brand imagegreater expenditure on advertising strengthening its distribution networks as well as bycustomer-focused initiatives. Apart from these Sagar Cements is looking for opportunitiesto expand its manufacturing facilities geographically to enter into new markets.
The per capita consumption of cement being very low in India there is a vast scope forgrowth in demand for cement on the long term. However for a real growth to happen in thecement industry there should be an overall growth in investments in the real estate andinfrastructure sectors.
Telangana and Andhra Pradesh are and will continue to be the major markets for yourCompany. With the respective Governments rightly focusing on the development ofinfrastructure along with the importance given by the Union Government for the developmentof National Highways Rural and Urban Roads Affordable Housing Port ConnectivityDevelopment of smart cities etc. coupled with private agencies coming up with a slew oftheir infrastructure development projects demand for cement in these and theirneighboring states is expected to see a significant growth which augurs well for yourcompany. Your company with its aggressive marketing is poised to grab the opportunityavailable in this scenario.
However till such time that the above scenario becomes a reality your company mayhave to continue to face the problems like rising input and distribution costs. Thereforetaking an overall view of the above your Board is cautiously optimistic about the futureoutlook for your company.
Risk Management System:
The Company attaches utmost importance to the assessment of internal risks and themanagement thereof in all its dealings. Company is constantly on the lookout foridentifying opportunities to enhance its enterprise value and keeping the need to minimizethe risks associated with such efforts every proposal of significant nature is screenedand evaluated for the risks involved and then approved at different levels in theorganization before implementation.
With a view to overcoming the risk of dependence upon any particular marketing segmentor region your Company is trying to reach out to a wider section of its ultimateconsumers. As the cement industry is witnessing rapid additions to its capacity inTelangana and A.P. in order to mitigate the risk associated with it Sagar Cements whoserevenue is mainly from these sales is looking for growth opportunities in other Stateswhere infrastructure spending is set to get a boost.
The Company has adequate system to manage the financial risks of its operations. Thesystem is implemented through imposition of checks and balances on extending credit to thecustomers audits like internal audit statutory cost and secretarial audit all of whichare periodically carried out through external firms proper appraisal of major capitalexpenditure adherence to the budget norms covering all areas of its operations and byinsurance coverage for the companys facilities.
Internal Control System and its adequacy:
The Board of Directors are satisfied with the adequacy of the internal control systemin force in all major areas of operations of the Company which is supported by an ERP andcompliance management systems. The audit committee assists the board of directors inmonitoring the integrity of the financial statements reservations if any expressed bythe companys auditors including the financial cost internal and secretarialauditors and based on their inputs the board is of the opinion that the companysinternal controls are adequate and effective.
Human resource development and Industrial Relations
Your Company continues to enjoy cordial relationship with all its personnel at itsPlant Office and on the field.
Your company is organizing training programmes wherever required for the employeesconcerned. Employees are also encouraged to participate in the seminars organized by theexternal agencies related to the areas of their operations.
Your company continues to focus on attracting and retaining competent personnel andproviding a holistic environment where they get opportunities to realize their fullpotential. Your company is committed to providing all of its employees with an healthy andsafe work environment.
Regarding the Sexual Harassment of Women at the work place (Prevention Prohibition& Redressal) Act 2013 the company has constituted the Internal Complaints Committee.No complaints were received or disposed off during the year under the above Act.
Awards and Recognitions
Your company was the recipient of the prestigious "Best Management Award" forthe year 2015 from the Government of Telangana.
Your company has already achieved ISO Certification ISO 9001:2008 for QualityManagement System Standard ISO 14001:2004 for Environmental Management System Standardand OHAS 18001:2007 for Occupational Health and Safety Management System Standard.
As the shareholders are aware your companys Laboratory at its Plant inMattampally has been awarded with the Accreditation by the National Accreditation Boardfor Testing and Calibration Laboratories (NABL) which is the sole accreditation body fortesting and calibration laboratories under the aegis of Department of Science andTechnology Government of India.
Directors Responsibility Statement
Pursuant to Section 134 (5) of the Companies Act 2013 the board of directors to thebest of their knowledge and ability confirm that:
i. in the preparation of the annual accounts the applicable accounting standards havebeen followed and there are no material departures;
ii. they have selected such accounting policies and applied them consistently and madejudgments and estimates that are reasonable and prudent so as to give a true and fair viewof the state of affairs of the company at the end of the financial year and of the profitof the company for that period;
iii. they have taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting fraud and other irregularities;
iv. they have prepared the annual accounts on a going concern basis;
v. they have laid down internal financial controls to be followed by the company andsuch internal financial controls are adequate and operating effectively;
vi. they have devised proper systems to ensure compliance with the provisions of allapplicable laws and that such systems are adequate and operating effectively.
Directors and Key Managerial Personnel
On the expiry of the terms of office of Shri S.Veera Reddy Dr.S.Anand Reddy and ShriS.Sreekanth Reddy respectively as Managing Director Joint-Managing Director and ExecutiveDirector they have been re-appointed in the respective capacities by your Board based onthe recommendation of its Nomination and Remuneration Committee.
In accordance with the provisions of Section 152 of the Companies Act 2013 Dr.S.AnandReddy and Shri John-Eric Fernand Pascal Cesar Bertrand will be retiring by rotation at theensuing Annual General Meeting and are eligible for reappointment.
Accordingly the resolutions seeking the approval of the members for the above saidre-appointments have been incorporated in the notice of the annual general meeting of thecompany.
Excepting Mrs. S.Rachana who is a director in Panchavati Polyfibres Limited andR.V.Consulting Services Private Limited whose transactions with the company have beenreported under the related parties disclosure under notes to the accounts none of theother non-executive directors has had any pecuniary relationship or transactions with thecompany other than the receipt of sitting fee for the meetings of the Board andCommittees thereof attended by them.
Independent Directors Declaration
The company has received the necessary declaration from each Independent Director inaccordance with Section 149 (7) of the Companies Act 2013 that he meets the criteria ofindependence as laid out in sub-section (6) of Section 149 of the Companies Act 2013.
Number of meetings of the board
Nine meetings of the board were held during the year. Details of such meetings havebeen given in the corporate governance report which forms part of the Annual Report.
Policy on directors appointment and remuneration and other details
The companys policy on directors appointment and remuneration and othermatters provided in Section 178 (3) of the Act have been disclosed in the corporategovernance report.
Under Section 178 (3) of the Companies Act 2013 the Nomination and RemunerationCommittee of the board has adopted a policy for nomination remuneration and other relatedmatters for directors and senior management personnel. A gist of the policy is availablein the Corporate Governance Report.
The Board of directors have carried out an evaluation of its own performance and of itscommittees as well as its individual directors on the basis of criteria such ascomposition of the board / committee structure effectiveness its process informationand functioning etc.
M/s. Deloitte Haskins & Sells Chartered Accountants (FR No.008072S) were appointedas Statutory Auditors of the company by the Shareholders at their 34th AnnualGeneral Meeting held on 23rd September 2015 to hold office from the conclusionof the said Annual General Meeting till the conclusion of the 39th AnnualGeneral Meeting subject to ratification of the said appointment by the shareholders atevery Annual General Meeting. Accordingly an appropriate proposal is being placed beforethe shareholders as part of the Notice of the ensuing Annual General Meeting seeking theirrequired ratification.
Auditors Report and Secretarial Auditors Report
The auditors report does not contain any qualifications reservations or adverseremarks.
Secretarial Auditors Report
In accordance with Section 204 (1) of the Companies Act 2013 the report furnished bythe Secretarial Auditors who carried out the secretarial audit of the company under thesaid Section is given in the Annexure-2 which forms part of this report. Regarding theobservations made by the Secretarial Auditors for convening of the board meeting held onJanuary 05 2016 at a shorter notice as the said observations are self-explanatory yourBoard has no further comments thereon.
M/s.Narasimha Murthy & Co. Cost Auditors of the company have been appointed asCost Auditors of the company for the year ending 31st March 2017. A resolutionseeking members ratification of the remuneration payable to the Cost Auditors has beenincluded in the notice of the AGM. The reports submitted by the Cost Auditors are filedwith the appropriate authorities within the prescribed time.
Particulars of loans guarantees and investments
The particulars of loans guarantees and investments have all been disclosed in thefinancial statements.
Transactions with related parties
None of the transactions with related parties falls under the scope of Section 188 (1)of the Act. Information on transactions with related parties pursuant to Section 134 (3)(h) of the Act read with rule 8 (2) of the Companies (Accounts) Rules 2014 are given inAnnexure-3 in Form AOC-2 and the same forms part of this report.
All related party transactions entered into during the financial year were on armslength basis and in the ordinary course of business. There were no materially significantrelated party transactions entered into by the company with the promoters key managementpersonnel or other designated persons that may have potential conflict with the interestsof the company at large. All related party transactions had prior approval of the AuditCommittee and were later approved by the Board.
Corporate Social Responsibility
The brief outline of the Corporate Social Responsibility (CSR) Policy of the companyare set out in Annexure-4 of this report in the format prescribed in the Companies(Corporate Social Responsibility Policy) Rules 2014. The policy is available on thewebsite of the company http://www.sagarcements.in/csr.html.
Extract of Annual Return
As provided under Section 92 (3) of the Act an extract of annual return is given inAnnexure-5 in the prescribed Form MGT-9 which forms part of this report.
Particulars of Employees
The information required under Section 197 of the Act read with Rule 5 (1) and 5 (2) ofthe Companies (Appointment and Remuneration of Managerial Personnel) Rules are given inthe Annexure-6 which forms part of this report.
a. The ratio of the remuneration of each director to the median remuneration of theemployees of the Company for the financial year:
|Particulars ||Ratio to Median Remuneration |
|Non-Executive Directors * || |
|Executive Directors || |
|Shri S.Veera Reddy ||70.15 |
|Dr.S.Anand Reddy ||59.24 |
|Shri S.Sreekanth Reddy ||53.78 |
*Non-Executive Directors are not paid any remuneration other than sitting fee.
b. The percentage increase in remuneration of each director chief executive officerchief financial officer company secretary in the financial year:
|Director Chief Executive Officer Chief Financial Officer and Company Secretary ||% increase in remuneration in the financial year |
|Shri O.Swaminatha Reddy ||These directors were not paid any remuneration other than sitting fee in which there was no increase during the financial year |
|Shri K.Thanu Pillai || |
|Shri K.Rajendra Prasad (APIDC Nominee) || |
|Shri John-Eric Fernand Pascal Cesar Bertrand || |
|Shri V.H.Ramakrishnan || |
|Mrs.S.Rachana || |
|Shri S.Veera Reddy ||125.00 |
|Dr.S.Anand Reddy ||171.43 |
|Shri S.Sreekanth Reddy ||228.57 |
|Shri R.Soundararajan ||7.02 |
|Shri K.Prasad ||7.34 |
c. The percentage increase in the median remuneration of employees in the financialyear: 8.91%.
d. The number of permanent employees on the rolls of Company: 445.
e. The explanation on the relationship between average increase in remuneration andCompany performance: On an average employees received an annual increase of around 10% inIndia.
In order to ensure that remuneration reflects Company performance the performance ofthe company is also one of the parameter for fixing the remuneration to the employees.
f. Comparison of the remuneration of the key managerial personnel against theperformance of the Company:
|Aggregate remuneration of key managerial personnel (KMP) in FY16 (` crores) ||3.17 |
|Revenue (` crores) ||649.99 |
|Remuneration of KMPs (as % of revenue) ||0.49 |
|Profit before Tax (PBT) (` crores) ||71.87 |
|Remuneration of KMP (as % of PBT) ||4.41 |
g. Variations in the market capitalization of the company price earnings ratio as atthe closing date of the current financial year and previous financial year
|Particulars ||March 31 2016 ||March 31 2015 ||% Change |
|Market capitalization (in Crores) ||689.43 ||534.94 ||28.88 |
|Price Earning Ratio ||13.85 ||1.80 ||668.28 |
h. Percentage increase over decrease in the market quotations of the shares of thecompany comparison to the rate at which the company came out with the last public offer:
|Particulars ||March 31 2016 ||June 22 1992 ||% Change |
|Market Price in NSE ||396.50 ||Not listed ||Not listed |
|Market Price in BSE ||386.50 ||45.00 ||759% |
i. Average percentage increase already made in the salaries of employees other than themanagerial personnel in the last financial year and its comparison with the percentileincrease in the managerial remuneration and justification thereof.
The average annual increase was around 12% for personnel other than managerialpersonnel. Increase in the managerial remuneration for the year was 164.04%. j. Comparisonof each remuneration of the key managerial personnel against the performance of theCompany:
|Description ||MD ||CS ||CFO |
|Remuneration in FY16 (lakhs) ||270.00 ||21.76 ||25.06 |
|Revenue (lakhs) || ||64999.86 || |
|Remuneration as % of revenue ||0.415 ||0.033 ||0.039 |
|Profit before Tax (PBT) (lakhs) || ||7186.85 || |
|Remuneration (as % of PBT) ||3.757 ||0.303 ||0.349 |
k. The key parameters for any variable component of remuneration availed by thedirectors:
Commission is the only variable component which depends on profit earned during therelevant year.
l. The ratio of the remuneration of the highest paid director to that of the employeeswho are not directors but receive remuneration in excess of the highest paid directorduring the year: None.
m. Affirmation that the remuneration is as per the remuneration policy of the Company:
The Company affirms that remuneration is as per the remuneration policy of the Company.
A report on corporate governance together with auditors certificate thereon hasbeen furnished as part of the Annual Report.
Policy on dealing with related party transactions is available on the website of thecompany (www.sagarcements.in).
The company has formulated and published a Whistle Blower Policy to provide VigilMechanism for employees of the company to report genuine concerns. The provisions of thispolicy are in line with the provisions of the Section 177 (9) of the Act and the ListingRegulations and the same is available on the companys web site.
Deposits from public
The company has not accepted any deposits from public and as such no amount on accountof principal or interest on deposits from public was outstanding as on the date of thebalance sheet.
Conservation of Energy Technology absorption and Foreign Exchange Earnings and Outgo:
The particulars required under Section 134 (3) (m) of the Companies Act 2013 have beenprovided in the Annexure-7 which forms part of the Report.
All the properties of the Company have been adequately insured.
Your company is committed to keep the pollution at its plant within the acceptablenorms and as part of this commitment it has adequate number of bag filters in the plant.
Sub Committees of the Board
The Board has Audit Committee Nomination and Remuneration Committee InvestmentCommittee Corporate Social Responsibility Committee and Stakeholders RelationshipCommittee. The composition and other details of these committees have been given in theReport on the Corporate Governance forming part of the Annual Report.
A certificate as stipulated under Schedule V(E) of the Listing Regulations from theAuditors of the Company regarding compliance with the conditions of Corporate Governanceis attached to this Report along with a report on Corporate Governance.
Statements in these reports describing companys projections statementsexpectations and hopes are forward looking. Though these expectations etc. are based onreasonable assumption the actual results might differ.
Your Directors wish to place on record their appreciation of the valuable co-operationextended to the Company by its bankers and various authorities of the State and CentralGovernment. They thank the Distributors Dealers Consignment Agents suppliers and otherbusiness associates of your Company for their continued support. Your Board also takesthis opportunity to place on record its appreciation of the contributions made by theemployees at all levels and last but not least of the continued confidence reposed by youin the Management.
| ||For and on behalf of the Board of Directors |
|Hyderabad ||O. Swaminatha Reddy |
|27th July 2016 ||Chairman |
CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS AND OUTGO
The information required under Section 134(3)(m) of the Companies Act 2013 read withRule 8 of the Companies (Accounts) Rules 2014 is given below:
Conservation of Energy and Technology Absorption
Your Company attaches utmost importance to conservation of energy by adoptinginnovative measures through usage of ecofriendly and cheaper fuels reducing wastage andoptimizing consumption of energy. Some of the specific measures undertaken are listedbelow: Company has since installed and commissioned VRPM in August 2015 to enhance thecement grinding capacity and to reduce the power consumption per ton of cement. Kiln RABHRaw Meal dust collection a separate hot bin is under implementation and will becommissioned by September16. This hot bin shall help in reducing the variation inquality for improving the preheater efficiency.
Optimization of Plant Capacity
Company has taken up Plant optimization program in the financial year 2015 2016to enhance the production capacity and reduce the Power and Fuel Consumption.
The following are the major developments:
1. Installation of VRPM as Pre-Grinder for Cement Mill No. 3
2. Completion of Railway Line
3. Installation of CFD Analysis for Complete Preheater including down comer duct andVRM Ducting.
4. Installation of Bin for Hot Raw Meal
VRPM as Pre-Grinder for Cement Mill no. 3
The present Cement Mill with OPC production mill output is 125 TPH. With theinstallation of VRPM the output shall be enhanced to 220 TPH for OPC and 260 TPH for PPC.The expected power savings will be a minimum of 6 units per ton of cement. The equipmentsare under erection and likely to be commissioned by end of July 2016.
CFD Analysis for Complete Preheater including down comer duct and VRM Ducting Companyhas awarded the contract to Mechwell Engineering Mumbai for CFD Analysis for completepreheater down comer duct and raw mill ducting for analyzing the gas flows and itsresistance across the preheater and ductings. The detailed analysis has revealed tocarryout modifications in the ducting which has resulted lower pressure drop and reducedpower consumption. After carrying out these modifications Line 2 Preheater isproducing around 5200 TPD.
Hot Bin for Kiln RABH Raw Meal Dust Collection
At present the Kiln RABH Raw Meal is fed to blending silo in Combi mode and directmode. When it is in direct mode the hot raw meal from RABH is fed to blending silo whichshall form a thick layer on the top of existing raw meal and disturbs the uniformity /quality of the raw meal present in the silo. To reduce the variation in quality it isproposed to install a separate hot bin adjacent to the blending silo. When raw mill is notrunning the hot raw meal is stored in a separate bin. When the raw mill is in operationi.e. in Combi mode the material from the hot bin is fed to blending silo in controlledmode so that the variation in the quality will be minimized which shall improve thepreheater efficiency.
Research and Development
Your Company Collaborates with National Council for Cement Building & Materials forResearch and Development activities and appointed CII for Plant Energy Audit.
Foreign Exchange earnings and Outgo
Details of foreign exchange earnings and outgo as per the Companies Act 2013 aregiven below.
| || || ||Rs.in Lakhs |
|S.No ||Particulars ||For the year ended 31st March 2016 ||For the year ended 31st March 2015 |
|1 ||Outgo ||4.46 ||0.92 |