A STUDY ON CASH FLOW STATEMENTS IN KESORAM CEMENT INDUSTRIES

PROJECT WORK AHEAD Project Title: A Study on cash flow statements in Kesoram Cement Industries, Karimnagar.

The information of the project is interim; the project will be carry on the basis of information required while making a project under the guidance of Project Guide.

Name Reg. No Project Guide

: : :

Sameer Bashs.

Area of Specialization :

Finance Cash Flow Statements.

Company Profile
Kesoram Cement Industry is one of the leading manufactures of cement in India. It is a day process cement Plant. The plant capacity is 8.26 lakh tones per annum It is located at Basanthnagar in Karimnagar district of Andhra Pradesh. Basanthnagar is 8 km away from the Ramagundram Railway station, linking Madras to New Delhi. The Chairman of the Company is syt. B.K.Birla,

HISTORY :
The first unit at Basanthnagar with a capacity of 2.1 lakh tones per annum incorporating humble suspension preheated system was commissioner during the year 1969. The second unit was setup in year 1971 with a capacity of 2.1 lakh tones per annum went on stream in the year 1978. The coal for this company is being supplied from Singereni Colleries and the power is obtained from APSEB. The power demand for the factory is about 21 MW. Kesoram has got 2 DG sets of 4 MW each installed in the year 1987.

Kesoram Cement has setup a 15 KW captor power plant to facilitate for uninterrupted power supply for manufacturing of cement at 24th august 1997 per hour 12 mw, actual power is 15 mw.

The Company was incorporated on 18th October, 1919 under the Indian Companies Act, 1913, in the name and style of Kesoram Cotton Mills Ltd. It had a Textile Mill at 42, Garden Reach Road, Calcutta 700 024. The name of the Company was changed to Kesoram Industries & Cotton Mills Ltd. on 30th

August, 1961 and the same was further changed to Kesoram Industries Limited on 9th July, 1986. The said Textile Mill at Garden Reach Road was eventually demerged into a separate company.

The First Plant for manufacturing of rayon yarn was established at Tribeni, District Hooghly, West Bengal and the same was commissioned in December, 1959 and the second plant was commissioned in the year 1962 enabling it to manufacture 4,635 metric tons per

annum (mtpa) of rayon yarn. This Unit has 6,500 metric tons per annum (mtpa) capacity as on 31.3.2009.

The plant for manufacturing of transparent paper was also set up at the same location at Tribeni, District Hooghly, West Bengal, in June, 1961. It has the annual capacity to manufacture 3,600 metric tons per annum (mtpa) of transparent Paper.

The Company diversified into manufacturing of cast iron spun pipes and pipe fittings at Bansberia, District Hooghly, West Bengal, with a production capacity of 45,000 metric tons per annum (mtpa) of cast iron spun pipes and pipe fittings in December, 1964.

The Company subsequently diversified into the manufacturing of Cement and in 1969 established its first cement plant under the name 'Kesoram Cement' at Basantnagar, Dist. Karimnagar (Andhra Pradesh) and to take advantage of favourable market conditions, in 1986 another cement plant, known as 'Vasavadatta Cement', was commissioned by it at Sedam, Dist.

Gulbarga (Karnataka). The cement manufacturing capacities at both the plants were augmented from time to time according to the market conditions and as on 31.3.2009 Kesoram Cement and Vasavadatta Cement have annual cement manufacturing capacities of 1.5 million metric tons and 4.1 million metric tons respectively.

The Company in March 1992, commissioned a plant at Balasore known as Birla Tyres in Orissa, for manufacturing of 10 lac MT p.a. automotive tyres and tubes in the first phase in collaboration with Pirelli Ltd., U.K., a subsidiary company of the world famous Pirelli Group of Italy - a pioneer in production and development of automotive tyres in the world.

The capacity at the said plant was further augmented during the year by 19 MT per day aggregating to 271 MT per day production facility. The Greenfield Project of 257 MT per day capacity in the State of Uttarakhand with a capex of about Rs.760 crores commenced the commercial production in phases during the financial year 2008-09.The Company as on 31.3.2009 had the manufacturing capacities of 3.71 million tyres, 2.95 million tubes and 1.53 million flaps per annum in the Plants including at Uttarakhand Plant.

It has small manufacturing capacities of various Chemicals at Kharda in the State of West Bengal also. It has the annual manufacturing capacities of 12,410 mtpa of Caustic Soda Lye, 5,045 mtpa of Liquid Chlorine, 6,205 mtpa of Sodium Hypochlorite, 8,200 mtpa of Hydrochloric Acid, 3,200 mtpa of Ferric Alum, 18,700 mtpa of Sulphuric Acid and 1,620,000 m3pa of purified Hydrogen Gas. The Company is a well-diversified entity in the fields of Cement, Tyre, Rayon Yarn, Transparent Paper, Spun Pipes and Heavy Chemicals with two core business segments i.e. Cement and Tyres.

In Spun Pipes & Foundries, a unit of the Company, work suspended from 2nd May, 2008 still commences till further notice.

The Company as of now is listed on three major Stock Exchanges in India i.e. Bombay Stock Exchange Ltd., Mumbai, Calcutta Stock Exchange Association Ltd., Kolkata and National Stock Exchange of India Ltd., Mumbai and at the Societe de la Bourse de Luxembourg, Luxembourg. A further expansion upto 1.65 million tons of cement per annum in Vasavadatta Cement at Sedam in Karnataka as unit IV at the same site is in progress, with a 17.5 MW Captive Power Plant, involving a capital expenditure of about Rs. 783.50 crores (including the cost of Captive Power Plant).

The commercial production of cement in the aforesaid unit IV has commenced in June 2009.

The work for the further expansion in the Tyres Section at Uttarakhand for radial tyres with 100 MT per day capacity and bias tyres with 125 MT per day capacity involving an estimated aggregate capital outlay of about Rs. 840 crores is under progress. The Board has further approved a Motor Cycle Tyre Project of 70 MT per day capacity at the same site involving a capital outlay of Rs.190 crore. The civil construction of both the Projects is in full swing. The commercial production in both the Projects is likely to start by December 2009/ January 2010.

Birla Supreme in popular brand of Kesoram cement from its prestigious plant of Basantnagar in AP which has outstanding track record. In performance and productivity

serving the nation for the last two and half decades. It has proved its distinction by bagging several national awards. It also has the distinction of achieving optimum capacity utilization.

Kesoram offers a choice of top quality portioned cement for light, heavy constructions and allied applications. Quality is built every fact of the operations.

The plant lay out is rational to begin with. The limestone is rich in calcium carbonate a key factor that influence the quality of final product. The day process technology uses in the latest computerized monitoring overseas the manufacturing process. Samples are sent regularly to the bureau of Indian standards. National council of construction and building material for certification of derived quality norms.

The company has vigorously undertaking different promotional measures for promoting their product through different media, which includes the use of news papers magazine, hoarding etc.

Kesoram cement industry distinguished itself among all the cement factories in Indian by bagging the National Productivity Award consecutively for two years i.e. for the year 1985-1987. The federation of Andhra Pradesh Chamber & Commerce and Industries (FAPCCI) also conferred on Kesoram Cement. An award for the best industrial promotion expansion efforts in the state for the year 1984. Kesoram also bagged FAPCCI awarded for Best Family Planning Effort in the state for the year 1987-1988.

One among the industrial giants in the country today, serving the nation on the industrial front. Kesoram industry ltd., has a checked and eventful history dating back to the twenties when the Industrial House of Birlas acquired it. With only a textile mill under its banner 1924, it grew from strength to strength and spread its activities to newer fields like Rayon, Transparent paper, pipes, Refractors, tyres and other products.

Looking to the wide gap between the demand and supply of a vital commodity cement, which play in important role in National building activity the Government of India had de-licensed the cement industry in the year 1966 with a review to attract private entrepreneur to augment the cement production. Kesoram rose to the occasions and divided to set up a few cement plants in the country.