20-08-2012, 12:18 PM
KESORAM CEMENT FACTORY LIMITED
KESORAM.doc (Size: 358 KB / Downloads: 81)
INTRODUTION:
Every organization requires funds to run and maintain its business the required funds may be raised from short term sources or long term sources or a combination both the sources of funds, so as to equip it self with an appropriate combination of fixed assets and current assets. Current assets to a considerable extent are financed with the help of short term sources. Normally, firms are expected to follow a prudent financial policy, as revealed in the maintenance of net current assets. These net positive current assets must be financed by long term sources. Hence long term sources of funds are required to finance for both.
METHODOLOGY:
Methodology is a systematic procedure of collecting information in order to analyze and verify a phenomenon. The collection of data through two principle sources viz.
(1) Primary data
(2) Secondary data
PRIMARY DATA:
It is the information collected directly without any reference. In the study it was mainly interviews with concerned officers and staffs either individually or collectively. Some of the information had verified or supplemented with personal observation, the data collected through conducting the personal interview with the officers of KESORAM INDUSTRIES LIMITED.
SECONDARY DATA:
The secondary data was collected from already published sources such as pamphlets annual reports, reports and internal records the data includes: Collection of required data from annual reports of KESORAM INDUSTRIES LIMITED. Reference from text books and relating to financial management. Articles published in business details like the economic times, business time etc.
HISTORY:-
During the world war-I cement was declared an essential commodity and it was brought under the defense of Indian rules, controlling the price distribution of cement. Cement remained under price and distribution control during the period 1939-45.After there world war-II arrangement was made between cement manufactures reading price and distribution of cement of avoid rate-war. In order t boost up sale of cement and concrete association of India was formed.
During in the year 1947 India Standard Specification for indigenous cement has applied in place of British standard Specification. All cement manufactures were obliged to maintain quality of cement as per the standard laid down in the specification. Norms for 1 day 3 day’s strength as well as setting time was prescribed to safeguard the interest of the customer. In 1956, cement control orders was promulgated and price and distributed of cement was vested with standard trading corporation and this arrangement continued up to 1966. For Govt. and function of earlier being performed by STC was taken by cement allocation and Co-ordination Organization formed by the cement manufactures and pricing irregularities Govt. again brought under control which lasted up to 28th Feb.1989.
Results of Partial decontrol:
Installed capacity in 70’s was 2,13,29,000 tones, which was raised to 4,19,03,000 tones in 80’s.number of other entrepreneurs entered the cement field with latest technology. On account of partial decontrol the financial position of existing units improved which attracted other manufacturers in the cement manufacturing activities. The unpredicted growth registered by cement industry after 1982-83 is only because of partial decontrol.
Existing sick units turned into viable units. Cement manufactures earned a good profit during 1982-83 to 1983-84, the part of which was utilized for the modernization of cement plants and setting Research and Development center. Cement was available to the public at reasonable rates between Rs.60-70 per beg at free market. Black marketing of cement disappeared to some extent.
Partial decontrol of cement by Government:
Cement industries had continuously been knocking doors of government for relief and everything after an inordinate delay government announced a meager increase in retention price. The increase was so inadequate that the same could not take care of even partial increases in cost of input on cement of Government. Action i.e., increases in petroleum product rates, coal, power, and tariff consequently number of cement units was of sick list. On 28th Feb 1982, Government declared partial decontrol by introducing principles of levy and free sale cement as it was existing in sugar industry. Under the new dispensations for existing units the levy quota was fixed at 6.66% and for six units at 50% of installed capacity.
Complete decontrol of Cement
However things were not as smooth as expected. Most of old units were having out dated technology and consequently cost of cement production as compared to the retention price fixed by the Govt. was very high.
In the sale area they had to complete with new units having latest technology and comparatively less share of levy obligations, Govt. had also increased excise duty which partially these units had to absorb to complete with new units.
More new units started adding which brought the ear of competition, which was earlier absent. Cost of inputs like railway and road freight, tariff went up day by day and once a better looking cement area against started going back.
Government continued changing basis of levy, free sale quota. Earlier it was on capacity basis of which was subsequently linked to actual production sick units were also identified. Gradually levy quota was reduced and during 1986 the concept of levy/non levy was removed from cement and control on price and distribution was lifted
LOCATION:
Kesoram cement industry is one of the leading manufacturers 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 AP. Basanthnagar is 8Km away from Ramagundam Railway Station, linking Madras to New Delhi. The chairman of the company is Shri B.T.Birla
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 the 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 Singareni Collieries and the power is obtained from APSEB. The power demand for the factory is about 21Mw. Kesoram has got 2 DG sets of 4 MW each installed in the year 1987. Kesoram cement has set up a 15KW captor power plant to facilitate for uninterrupted power supply for manufacturing of cement at 24th August 1997 per hour 12MW, actual power is 15 MW.
KESORAM.doc (Size: 358 KB / Downloads: 81)
INTRODUTION:
Every organization requires funds to run and maintain its business the required funds may be raised from short term sources or long term sources or a combination both the sources of funds, so as to equip it self with an appropriate combination of fixed assets and current assets. Current assets to a considerable extent are financed with the help of short term sources. Normally, firms are expected to follow a prudent financial policy, as revealed in the maintenance of net current assets. These net positive current assets must be financed by long term sources. Hence long term sources of funds are required to finance for both.
METHODOLOGY:
Methodology is a systematic procedure of collecting information in order to analyze and verify a phenomenon. The collection of data through two principle sources viz.
(1) Primary data
(2) Secondary data
PRIMARY DATA:
It is the information collected directly without any reference. In the study it was mainly interviews with concerned officers and staffs either individually or collectively. Some of the information had verified or supplemented with personal observation, the data collected through conducting the personal interview with the officers of KESORAM INDUSTRIES LIMITED.
SECONDARY DATA:
The secondary data was collected from already published sources such as pamphlets annual reports, reports and internal records the data includes: Collection of required data from annual reports of KESORAM INDUSTRIES LIMITED. Reference from text books and relating to financial management. Articles published in business details like the economic times, business time etc.
HISTORY:-
During the world war-I cement was declared an essential commodity and it was brought under the defense of Indian rules, controlling the price distribution of cement. Cement remained under price and distribution control during the period 1939-45.After there world war-II arrangement was made between cement manufactures reading price and distribution of cement of avoid rate-war. In order t boost up sale of cement and concrete association of India was formed.
During in the year 1947 India Standard Specification for indigenous cement has applied in place of British standard Specification. All cement manufactures were obliged to maintain quality of cement as per the standard laid down in the specification. Norms for 1 day 3 day’s strength as well as setting time was prescribed to safeguard the interest of the customer. In 1956, cement control orders was promulgated and price and distributed of cement was vested with standard trading corporation and this arrangement continued up to 1966. For Govt. and function of earlier being performed by STC was taken by cement allocation and Co-ordination Organization formed by the cement manufactures and pricing irregularities Govt. again brought under control which lasted up to 28th Feb.1989.
Results of Partial decontrol:
Installed capacity in 70’s was 2,13,29,000 tones, which was raised to 4,19,03,000 tones in 80’s.number of other entrepreneurs entered the cement field with latest technology. On account of partial decontrol the financial position of existing units improved which attracted other manufacturers in the cement manufacturing activities. The unpredicted growth registered by cement industry after 1982-83 is only because of partial decontrol.
Existing sick units turned into viable units. Cement manufactures earned a good profit during 1982-83 to 1983-84, the part of which was utilized for the modernization of cement plants and setting Research and Development center. Cement was available to the public at reasonable rates between Rs.60-70 per beg at free market. Black marketing of cement disappeared to some extent.
Partial decontrol of cement by Government:
Cement industries had continuously been knocking doors of government for relief and everything after an inordinate delay government announced a meager increase in retention price. The increase was so inadequate that the same could not take care of even partial increases in cost of input on cement of Government. Action i.e., increases in petroleum product rates, coal, power, and tariff consequently number of cement units was of sick list. On 28th Feb 1982, Government declared partial decontrol by introducing principles of levy and free sale cement as it was existing in sugar industry. Under the new dispensations for existing units the levy quota was fixed at 6.66% and for six units at 50% of installed capacity.
Complete decontrol of Cement
However things were not as smooth as expected. Most of old units were having out dated technology and consequently cost of cement production as compared to the retention price fixed by the Govt. was very high.
In the sale area they had to complete with new units having latest technology and comparatively less share of levy obligations, Govt. had also increased excise duty which partially these units had to absorb to complete with new units.
More new units started adding which brought the ear of competition, which was earlier absent. Cost of inputs like railway and road freight, tariff went up day by day and once a better looking cement area against started going back.
Government continued changing basis of levy, free sale quota. Earlier it was on capacity basis of which was subsequently linked to actual production sick units were also identified. Gradually levy quota was reduced and during 1986 the concept of levy/non levy was removed from cement and control on price and distribution was lifted
LOCATION:
Kesoram cement industry is one of the leading manufacturers 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 AP. Basanthnagar is 8Km away from Ramagundam Railway Station, linking Madras to New Delhi. The chairman of the company is Shri B.T.Birla
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 the 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 Singareni Collieries and the power is obtained from APSEB. The power demand for the factory is about 21Mw. Kesoram has got 2 DG sets of 4 MW each installed in the year 1987. Kesoram cement has set up a 15KW captor power plant to facilitate for uninterrupted power supply for manufacturing of cement at 24th August 1997 per hour 12MW, actual power is 15 MW.