SUMMER PROJECT

FINAL PROGRESS REPORT

ON
SAGAFR CEMENT LTD

SUBMITTED TO: SUBMITTED

BY:
Name: Shilpa sandhu STUDENT NAME: Deepak
oram
Designation: Project guide UID: 19BBA1492
Chandigarh University Batch : 2019-22
Location: Gharuan, Mohali

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CHANDIGARH UNIVERSITY
GHARUAN, MOHALI (PUNJAB)

ACKNOWLEDGEMENT

I express my sincere thanks to my project guide MS. SHILPA SANDHU designation PROJECT GUIDE
department BBA, for guiding right form of inception till the successful completion of the project. I
sincerely acknowledge her for extending their valuable guidance, support for literature, critical
reviews of project and the report and above all the moral support she had provided to me with all
the stage of this project.

SIGNATURE OF STUDENT
NAME: Deepak oram
Uid: 19BBA1492

THANK YOU

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CONTENT

TITLE PAGE NO.

1. REPORT 1.
I. MARKET ANALYSIS OF
SAGAR CEMENT LTD. 4-19
2. Report 2
II. COMPANY ANALYSIS OF
SAGAR CEMENT LTD. 20-36
3. REPORT 3
III. FUNCTIONAL (JOB)
ANALYSIS OF SAGAR
CEMENT LTD. 37-47
4. REPORT 4
IV. FUNCTIONAL ELECTIVE
AREA ANALYSIS OF SAGAR
CEMENT LTD. 48-58

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SHRI S.VEERA REDDY GARU
(1935 - 2018)
FOUNDER THE ETERNAL GUIDING SPIRIT

• BOARD OF DIRECTORS
Shri O.Swaminatha Reddy: Chairman – Independent
Dr.S.Anand Reddy: Managing Director
Shri S.Sreekanth Reddy: Joint Managing Director
Mrs.S.Rachana: Non Executive Director
Shri K.Thanu Pillai: Independent
Shri V.H.Ramakrishnan: Independent
Shri John-Eric Fernand Pascal Cesar Bertrand: Non Executive
Shri T.Nagesh Reddy: APIDC Nominee
Shri Jens Van Nieuwenborgh: Alternate Director to Shri John-Eric Fernand Pascal
Cesar Bertrand (From 20.11.2018)
COMPANY SECRETARY: Shri R.Soundararajan
CHIEF FINANCIAL OFFICER: Shri K.Prasad

• SENIOR MANAGEMENT TEAM ✓ Corporate Office

Shri K.Ganesh: Group President
Shri P.S.Prasad: President (Marketing)
Shri O.Anji Reddy: Sr.Vice President (Electrical & Instrumentation)

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• AUDITORS
Deloitte Haskins & Sells
Chartered Accountants (FR No.008072S)
KRB Towers, Plot No.1 to 4 & 4A, 2nd & 3rd Floor,
Jubilee Enclave, Madhapur, Hyderabad-500 081

• COST AUDITORS
M/s.Narasimha Murthy & Co.,
Cost Accountants (FR No.000042)
104, Pavani Estates, Y.V.Rao Mansion,
Himayathnagar, Hyderabad – 500 029

• BANKERS
State Bank of India Yes Bank Limited HDFC Bank Limited

• REGISTERED OFFICE
Plot No.111, Road No.10, Jubilee Hills
Hyderabad-500 033. Tel: 040 – 23351571, Fax: 040 - 23356573 website:
www.sagarcements.in, e-mail: [email protected]
CORPORATE IDENTITY NUMBER
L26942TG1981PLC002887

• PLANTS
Cement Plants: Hydel Power Units:
1. Mattampally, Via Huzurnagar, 1. Guntur Branch Canal Hydel Project
Suryapet District, Telangana - 508 204 Tsallagundla Adda Road, Nekarikallu Mandal
Tel: 08683 – 247039 Guntur District, Andhra Pradesh – 522 615
2. Bayyavaram Village, Kasimkota Mandal, 2. Lock-in-Sula- Hydel Project
Visakhapatnam District, Andhra Pradesh - 531031. Banumukkala Village, Banakacherla
Regulator
Tel: 08924 – 244098 / 244550 Pamulapadu Mandal, Kurnool District, A.P.- 518 422

• Report at a Glance

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This is the company’s First Sustainability Report; it marks the beginning of a formal process
to communicate the Sustainability performance of Sagar Cements Ltd. to its stakeholders.
This report has been prepared in accordance with the GRI Standards: Core option.

The information pertains to the period 1st April 2018 to 31st March 2019. The data in the
report is limited to the company’s manufacturing plant at Mattampally Suryapet District,
Telangana.

Although Sagar Cements has internal mechanisms to ensure the reliability of the data, the
report has been assured by Libero Assurance (Libero’) thereby enhancing the credibility of
the disclosures in the report. Libero Assurance (Libero’) is an independent third party that
has no financial interest in the operations of Sagar Cements Ltd. other than for the
assessment and assurance of this report. The assurance statement thus issued has been
included in the report. The company’s Top Management has been proactively involved in
the assurance process.

Being the first Sustainability Report, no restatements have been made. Continuing with its
commitment to sustainable development, Sagar Cements will henceforth produce the
sustainability report, periodically aligning with its reporting cycle to the extent possible. For
your suggestions and feedback, kindly write to us at [email protected]

The development of Sustainability Report for FY 2018-19, is supported by International

Finance Corporation (IFC)- a sister organization of the World Bank and member of the World
Bank Group, under an advisory program focused on institutionalizing resource efficiency and
sustainability. Providing advice is a critical part of IFC’s strategy to create markets and
mobilize private investments. IFC’s work for this program is supported by donor partners –
Canada IFC Partnership Fund, Government of Canada and The Sustainable Development
Investment Partnership (SDIP) under Department of Foreign Affairs and Trade (DFAT),
Government of Australia. IFC and Sagar Cements Ltd thankfully acknowledge the
contributions provided.

• HISTORY
Sagar Cements Limited was incorporated in the year 1981 with the object, inter–alia, of
manufacturing of cement. The actual commercial journey started on January 26, 1985 with
the production capacity of 66,000 tonnes of OPC per annum at Mattampally, Nalgonda,
Hyderabad.
Sagar Cements Limited, is one of the most modern mini cement plants in the state of Andhra
Pradesh. The most sophisticated state–of–the–art technology it uses is one of the strengths
of the company. The plant is based on Dry Process Rotary Kiln Technology that is used in
Standard Quality' cement companies.
As its contribution to the fast-developing modern India, Sagar Group, Sagar Cements has
been playing the major role for 20 years by providing the cement that speaks for itself. Now,
with the help of most sophisticated technology and the trusted consumers, their product
range is spreading its horizons that declare their operations have grown to be among the
largest in India. Since they believe progress is a continuous process, they are committed to

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become more aggressive and to be called as, The Preferred Cement Supplier of India. This
progress includes but not limited to high levels of assurance to the customers, greater
financial performance for suppliers and prosperous future to their staff that can help them
to play an even larger role in the community.
First Mini Plant: The first mini plant of the company is located at Mattampally, Nalgonda
district, located within 35 km from the National Highway No 9 connecting Vijayawada–
Hyderabad.
Sagar Cements Ltd and Vicat S.A. of France set up a 5.5–million–tonne a year cement plant
at a cost of Rs 2,500 crore in Gulbarga, Karnataka in 2008. Vicat then picked up a 6.67 per
cent stake in Sagar Cements for a consideration of Rs 70 crore. The joint venture, Vicat–
Sagar Cements, explores opportunities for holding assets overseas. This venture gave Vicat
an entry into the Indian market while for Sagar Cements it offers them an opportunity to tap
overseas markets.The joint venture have an equity capital of Rs 720 crore, of which Sagar
Cements share was Rs 196 crore and Vicat Rs 524 crore. The balance came as debt, for
which Vicat was responsible.

• Stakeholders,

It is with great pride that I bring to you Sagar Cement Limited’s first Sustainability Report for FY
201819. This report, developed as a proactive disclosure of our triple bottom line initiatives, is the
first such report being presented by the company. We started our journey with the production of
cement in the year 1985 with a mission to create value for all our stakeholders. Since then we have
followed a path of growth which is inclusive. In all these years, sustainability and social responsibility
have always been an integral element of Sagar Cement’s corporate strategy. At Sagar Cements
today, the agenda is to achieve Environmental, Social and Economic sustainability. Various initiatives
are being deployed to enhance operational performance, create value for stakeholders, improve
quality systems, Customer satisfaction, to develop and retain talent. We deploy state of the art
technologies to provide our customers with a high-quality product and at the same time managing
our environmental and social footprint. Our growth parameters are not limited to profits but include
the growth of our employees & society at large.

In the financial year 2018-19, we introduced new initiatives. We opened ourselves for evaluation
under the Green Company Rating system' (GreenCo rating) which evaluates green features of
companies against certain performance parameters such as energy efficiency, water conservation,
renewable energy, GHG mitigation, water management, etc. Further to this, we also conducted
indepth resource efficiency studies: Thermal and Electrical in our cement manufacturing facility
located in Mattampally, Telangana. As a result, we explored various resource efficiency opportunities
and GHG emission reduction potential. We are confident that we will reduce our carbon footprint
and increase our efficiency in the near future. We have also drafted our Sustainability Policy, which
will act as a guiding tool for our future endeavors towards Sustainable development.

We are committed to building a responsible and sustainable business. Under our Community
development programme, we work in the area of Capacity Building, Education, promotion of Sports
and rural development. We will continue our efforts in building self-reliant communities in the years
to come. For us, CSR is a tool for value creation rather than an act of philanthropy. We will continue
to monitor, manage and communicate our Sustainability performance to our stakeholders. I thank
our stakeholders for supporting us in our journey towards sustainability. We seek your continued

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support to enable us to achieve our goals and look forward to your feedback to improve our
performance.

Sagar Cements Ltd. (SCL) is a company engaged in the manufacturing of Cement. Since its
inception in 1985 has grown multi-folds both in terms of scale and scope. It commenced its
operations with a cement capacity of 66000 TPA and has gradually increased to 3.30 MTPA,
while its Clinker capacity has also witnessed a significant increase from 66000 TPA in 1985 to
the present level of 2.65 MTPA. Within a time span of 37 years it has carved a niche place for itself in
the cement sector across the state of Telangana, Andhra Pradesh and its neighboring states in India.
It is a public company incorporated on 15 January 1981 and is classified as Non-govt company
registered at Registrar of Companies, Hyderabad.

The company which started with its flagship manufacturing plant at Mattampally in Telangana, has
broadened its horizons and has Reacquired the grinding unit at Bayyavaram Village, Andhra Pradesh.
The company doesn’t have any Joint Ventures and Associate Companies. It has two wholly-owned
subsidiaries BMM Cements Ltd. (re-named as Sagar Cements (R) Limited.) with its cement plant in
Gudipadu Village in Ananthapur District, Andhra Pradesh and Jajpur Cements Private Limited which is
in the process of setting up a Cement Grinding Plant of 1.5 MTPA capacity at Jajpur, Odisha.

Sagar Cements recently acquired 65% equity stake in Satguru Cement Private Limited (SCPL) and is
putting up a new line of 7.33 Lakh TPA Clinker and 1 Million TPA Cement production capacity
respectively. The plant is located at Gursal village in Dhar district, Madhya Pradesh. The company has
2 Hydel power units i.e. Guntur Branch Canal Hydel Project, Guntur District, Andhra Pradesh, and
Lockin-Sula- Hydel Project, Kurnool District, A.P. The company employs state of the art technology.
Its plant at Mattampally is based on Dry Process Rotary Kiln Technology.

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Product Portfolio
53 Grade OPC It is a higher strength cement to meet the needs of the consumer for higher strength
concrete. 43 Grade OPC It is the most popular general-purpose cement. 33 Grade OPC This cement is
used for general civil construction work under normal environmental conditions. Portland Pozzolana
Cement (PPC) Blended Cement is produced by either inter-grinding of OPC clinker along with gypsum
and pozzolanic materials in certain proportions or grinding the OPC clinker, gypsum, and Pozzolanic
materials separately and thoroughly blending them in certain proportions. Sulphate Resisting
Portland cement (SRC) Sulphate Resisting Portland Cement is a type
of Portland cement in which the amount of Tricalcium aluminate (C3A) is restricted to lower than 5 %
and (2 C3A + C4AF) is lower than 25%.

SCL manufactures various varieties of Cement including Ordinary Portland Cement (OPC) of 53
Grade, 43 Grade, 33 Grade, Portland Pozzalona Cement (PPC) and Sulphate Resistant Cement (SRC).
The products are being sold under the Brand name “Sagar”.

The company caters to the Indian Market with a specific focus on states of Telangana, Andhra
Pradesh, Karnataka, Tamil Nadu, and Maharashtra. With the expansion of the grinding unit at
Bayyavaram, SCL have increased its presence in South Odisha Markets too. The company, with its
state-of-the-art technology, maintains a high standard of quality of its products. As a result, it has
been able to create a loyal customer base spread across diverse segments and geographical areas.

To serve the end customer, The Company has a well-established marketing network comprising of
various layers like Distributors, Dealers, C&F Agents, all of whom are served by dedicated marketing
personnel. Further to this, SCL engages with its customers at regular intervals to take their feedback
and thereby incorporating that in its operations. Sagar Cements Ltd. is looking to expand its business
in the interior areas of its neighboring states through strategic alliances. The company envisages a

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growth that is not limited to providing high-quality cement to its customers but creating value for its
stakeholders in the long run.

Cement manufacturing is an energy-intensive process. A mixture of Limestone and Clay is ground

and burnt at a very high temperature to form Clinker. The Clinker is ground to a fine powder with the
addition of Gypsum (up to 5 %) to form Cement. The essential components of Cement are Lime,
Silica, Alumina and Iron Oxide. There are different types of Cement, which differ based on their
chemical composition. However, the manufacturing process remains the same. Limestone is the
primary component of cement which is extracted from the quarry. There are other raw materials
such as coal, fly ash, petcoke, laterite, etc. used in cement manufacturing which are bought directly
from other sources because of small quantity requirements.

Limestone is crushed and reduced to a fine powder and it is blended with other raw materials in
correct proportion. The mixture known as kiln feed is heated in a rotary kiln where it reaches a
temperature of about 1400 C to 1500 C. The material formed in the kiln is known as ‘clinker’. The
cement mill grinds the clinker to a fine powder. A small amount of gypsum - a form of calcium
sulphate - is normally ground up with the clinker. The gypsum controls the setting properties of the
cement when water is added.

• Corporate Governance
Sagar Cements is spearheaded by a team of well qualified, diligent and committed
leadership. It maintains high standards of corporate governance and has systems and
procedures in place to promote transparency and accountability across the organization.
The Board of directors includes Chairman, Managing Director, Joint Managing Director,
Independent Directors and a Nominee Director.
During the reporting period, the board met seven times and the gap between two
consecutive meetings did not exceed one hundred and twenty days. The company complies
with the requirements applicable under SEBI (Listing Obligations and Disclosure

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Requirements) Regulations, 2015 (SEBI Listing Regulations) concerning corporate
governance.
To deal with complex issues with a focused approach, the board constituted various
committees with each having its specific function. These committees include the Audit
Committee, Nomination, and Remuneration Committee, Stakeholders’ Relationship
Committee and Corporate Social Responsibility Committee. The CSR committee is
responsible for decision making on social and environmental topics.

• Risk Management
Sagar Cements have been proactive in identifying various risks associated with its business,
both internal and external. As a precautionary measure, a risk management system has
been put in place where in Order to minimize risks every proposal of significant nature is
screened and evaluated for the risks involved in it and then approved at different levels in
the organization before implementation.
Various risks including the risk of dependency on a particular market/ region for sales,
financial risks, etc. are effectively managed. Internal controls such as the audit committee
have also been put in place.
It is further ensured that business is conducted in full compliance with all national and
international laws and regulations that pertain to cement sector, as well as professional
standards, accepted business practices, and internal standards. The compliance officer is
charged not just with keeping the business dealings ethically sound and legally pristine, but
with educating the entire company and instituting practices that will ensure the highest
possible level of compliance.
SCL tracks all statutory and regulatory compliances applicable to each department in the
organization . A responsibility to ensure that SCL is in complaince with a particular law or
regulation lies with the compliance owner of that particular law or regulation. Compliance
Module generates auto email alert and communicates the same to owner and approver in
time. The Module data base is updated with respect to the recent amendments in
compliance. In addition to the above as part of IMS, legal register is also maintained by the
departments, where in statutory and regulatory requirements are covered. The top
management of SCL reviews the comprehensive report on compliance management during
monthly review meeting. During the reporting period, there were no cases of non
compliance related to the environment, social, labour, and corruption.

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• Ethics, Values and Integrity
Sagar Cements has imbibed a culture where decisions are governed by its values and beliefs.
Driven by a strong value system at the core, each employee abides by the organizations'
policies and procedures.
A well written Code of Conduct aims at maintaining uniformity, transparency and fairness in
dealing with its stakeholders. In addition to the code of conduct, Sagar Cements has
implemented various other policies including Whistle Blower policy, Corporate Social
Responsibility Policy, Environment, Occupational Health & Safety policy, etc. as a measure to
strengthen its governance system and to conduct its business with high ethical standards.
The company has implemented a Whistle Blower Policy giving employees a fair opportunity
to raise a voice against any unethical and improper practices or any other wrongful conduct
in the Company. The presence of a Corporate Social Responsibility Policy reflects SCL's
commitment towards society. It acts as a guiding source to conduct community
development initiatives responsibly. Occupational Health & Safety Policy of the company
demonstrates its commitment towards Health & Safety of its Employees. The company has
also established an Environment Policy to work towards conserving natural resources and
operate its business in an environment-friendly manner.

• Stakeholder Engagement
Stakeholder Engagement is a critical factor in the success of any business. An effective
engagement builds trust, transparency and a sense of ownership amongst the stakeholders.
At Sagar Cements it is an integral part of our operations. We engage with our stakeholders
periodically. Their concerns and expectations are given due consideration and are reflected
in our business decisions. The engagement process helps us to continuously improve and
follow our mission “to deliver value to our Stakeholders. At Sagar Cements, Stakeholder
engagement is a strategic process. We engage with various stakeholders on different forums
including surveys, emails, one to one discussion, etc. To derive value from the process, the
engagement mechanism differs for each stakeholder e.g. we conduct open dialogues with
the community, etc.
During the reporting period, we used existing engagement mechanisms to map the concerns
raised by our stakeholders. The Process commenced by identifying a comprehensive list of
stakeholders, which were then prioritized based on their interest and power to influence
our business. The stakeholders engaged during the reporting period are given in the figure.
We maintain a dynamic relationship with our stakeholders.

Stakeholder Method Frequency of Key Sustainability Reference Pg.

Group of Engagement Concerns No.
Engagement Identified

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Employees Appraisal Annually Training & Development, 46,50
Occupational Health &
Safety
Customers Customer Quarterly Regular Feedback 15
Feedback
Suppliers Business Partners Annually Health & Safety, Green 46,54
Meet Practices
Local As Required Community Development, 55
Communities infrastructure
Development

The issues prioritized by our stakeholders were presented before the management team
which further discussed the other relevant topics reflecting the organization’s significant
economic, environmental, and social impacts in addition to those topics which substantively
influence the assessments and decisions of stakeholders. The outcome was a list of 11
significant Material Topics that are relevant for the organization. The topics in “high”
Category are the most significant. These topics are covered in the report in terms of data
and DMA in various chapters.

• Stewardship in ESG
Sagar Cements measures its performance on Environment, Social & Governance criteria. It
takes into account its impact on the environment and society while taking key decisions. In
our endeavour to be a responsible corporate citizen, we have implemented various
initiatives across our operations. Improving energy efficiency is one of our key focus areas.
We have implemented state-of-the-art technology to achieve optimum efficiency. Significant
investments have been made to reduce dependence on non-renewable sources of energy.
To reduce our emissions, we have planted 4,23,739 trees in an area of about 210 hectares
sequestering about 6,356 tons of CO2 per year. The tree plantation and nursing them is a
continuous activity and we intend to add about 20,000 tree plantations in an additional area
of 15 hectares. Water conservation is another area of strategic priority. We are proud to
claim that we are a water positive organization. We made conscious efforts and significant
progress in the use of alternative raw materials, alternative fuels, and cementitious
materials thereby preserving natural minerals. Our marketing efforts are also targeted
towards promoting green products.
We have extended our effort in our supply chain and are encouraging our suppliers to adopt
green practices in their businesses. To develop a sustainable and environmental-friendly
culture throughout the company, we have implemented the GREENCO certification process
across all the manufacturing units. At Sagar Cements employees are encouraged to develop
new skills through various internal and external training programmes. We are making
conscious efforts to improve gender parity. Sagar Cements strongly believes that adherence
to good corporate practice leads to transparency in its operations and facilitates building a
strong relationship with all its stakeholders. The company from its very inception is
voluntarily committed to practicing good corporate governance enabling us to earn trust

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and goodwill of our investors, business partners, employees and the community at large. As
a responsible organization, we adhere to all applicable compliances and regulations. For
Sagar Cements it is mandatory and non-negotiable. Senior management regularly reviews
and monitors the status of compliance. The details of our performance on ESG parameters
are available in subsequent chapters of this report.

• Economic Performance
The financial year 2018-19 (stand-alone including Bayyavaram unit) has been successful in
terms of production, sale, revenue and average net sales realization per ton of cement. Total
cement production was 24,20,567 MT. We have achieved an increase of 24.70% and 24.16%
in the cement production and sales respectively in terms of volume over the previous year.
However, the EBDITA dropped to 12% from 18% in the previous year. The reason being an
increase in input costs and a marginal fall in the average sales realization per ton of cement.
The current markets do not offer much scope to increase our sales volume to any significant
extent, at least in the near future. Further, these markets are witnessing heavy competition
resulting in wide fluctuations in the price thereby impacting the margins. To mitigate this
risk associated with the dependency on existing markets where the demand-supply gap is
increasing, we are looking for opportunities to expand our reach to central and eastern parts
of the country as demand for cement is expected to grow relatively at a faster rate in those
areas. Our expansion model will include setting up of integrated cement plants/grinding
stations.

• Environmental Performance
The cement industry is one of the oldest sectors in India playing a significant role in the
economic development of the country. The sector has seen phenomenal growth in the last
few years. In fact, a large part of this push comes because of favorable government policies
and the State’s active role in enabling infrastructure growth, thus driving up the demand for
cement. This growth story is likely to continue into the coming years. At the same time, the
growth must be sustainable as cement manufacturing is associated with environmental
impacts including emissions, extraction of raw material, energy, etc. Sagar Cements, as a
proactive organization has taken various measures to limit its impacts on the environment.
The plant at Mattampally has a sound environmental management system. It is certified for
ISO 14001 : 2015.

➢ Raw Material
Cement manufacturing requires non-renewable raw materials with the limestone being the
primary raw material in addition to other materials such as clay, iron ore, etc. We have a
captive limestone mine near our plant at Mattampally. The other raw materials including
iron ore, bauxite, laterite, and gypsum are sourced externally. State-of-the-art mining
equipment has been deployed at all our mines for mineral extraction and development
which is executed strictly following mining plans and schemes approved by statutory

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authorities. The raw material consumed at Mattampally plant during FY 2018-19 is as
follows:

As a part of our conservation initiatives, we are using CBX, Ramco mine management
software to blend the various types of low-grade limestone with high-grade in required
proportions to conserve the mineral.
To reduce/eliminate mining rejects, SCL increases its Low grade limestone consumption
significantly with each passing year by utilizing the high-grade coal/pet coke as a fuel for
clinker manufacturing.

• Energy
Cement industry being an energy-intensive industry, is heavily dependent on two sources of
energy i.e. Thermal and electricity for its processes. Thermal energy is used in the kiln,
captive power plant, etc., whereas electricity is primarily used for crushers, grinding mills
and for transporting materials. The potential for energy savings in the cement industry is
considerable.
Sagar Cements is using state-of-the-art technologies to improve the energy efficiency of its
processes. SCL is implementing ISO 50001 system and is in the process of obtaining
Certification.

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The plant at Mattampally is based on Dry Process Rotary Kiln Technology. The Mattampally
plant uses 100% petcoke. We have installed 1.25 MW Solar, 6.5/7.0 MW Waste Heat
Recovery System (WHRS) and 18.0 MW Thermal. WHRS helps serves a dual purpose—it is
not only the cheapest source of power generation, but it also helps in reducing the carbon
footprint. In addition we have included renewable energy in our energy mix including solar,
hydel and wind energy. The implementation of an energy management policy has facilitated
in improving energy efficiency.

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During the reporting period, our total energy consumption was 60,70,611.91 GJ. 3% of our
requirement was met by renewable energy. Over the years the percentage substitution of
renewable/green energy in the total energy mix has increased.

• Limestone Crusher located in Mines

One of the very first companies to adapt to this method. By locating the Limestone
Crusher near mine, the raw materials haulage distance became very minimal thereby
saving the transport vehicle fuels, minimizing the dust generation by moving vehicles.

• Limestone Crusher located in Pit

The Limestone crusher is placed below the ground inside the pit. This arrangement is
avoiding the construction of the ramp, vehicles climbing steep ramp thereby saving fuel
and minimizing the wear & tear of the vehicles.

• Secondary Crusher for Limestone

Crushing operation is much more energy-efficient compared to grinding. The secondary
crusher is installed to reduce the size of the limestone reaching grinding mill. This helped
in the reduction of specific energy while increasing the out but from the mill. This way
bidimensional benefit is achieved.

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•

ON-LINE Prompt gamma neutron activation analysis (PGNAA) Analyzer

This instrument is the Bulk Material analyzer and is installed on the Limestone transport
conveyor belt. It gives the complete elemental analysis of the Limestone moving on the
conveyor. In combination with the PILE EXPERT software, it ensures that the pile is
prepared just meeting the quality requirement of the desired product thereby helping
proper blending of all grades of mineral and mineral conservation. With the help of this
system and managing the fuel, all grades of minerals including overburden are used in
the process and rejection of mineral is totally avoided.

• Stage Pre-Heater
SCL modified the Pre-heater system from 4 stage to 5 stage and again to 6 stage
lowpressure drop high efficient cyclone system to reduce both electrical energy thermal
energy consumption.

• Static Cooler
One of the very first companies to install static grades in the clinker cooler plant. This
helps in increasing the cooler recuperation efficiency and thereby reducing the specific
fuel consumption.

• CFD Analysis
Advancement of software utilization in process simulation provided an attractive
opportunity to study the dynamic behavior of various process equipment like Cyclones,
separators, ducts, etc. One of the very first companies to make use of this technology. A
significant reduction in specific electric energy is realized by making use of this software
tool.

• Automated Laboratory
One of the very first companies in India to possess an ON-LINE ROBOT operated
laboratory system. The whole process of product quality check, starting from collection
of a representative sample, sample transport to laboratory, sample preparation, feeding
to analytical equipment, receipt of results, analysis & treatment of results and
consequent control of plant machinery in all sections of the manufacturing cycle is
totally automated without any human intervention. This helps in very consistent quality
benefiting the enduser with very minimum use of all resources like minerals, fuel,
electricity and human resource.

Waste Management
Sagar Cements has put in place an efficient waste management system to manage both
hazardous and non-hazardous wastes. We have adopted a hierarchal approach to manage
waste i.e. to reduce, reuse, recycle and recover to the best possible extent by making use of

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•

viable technologies. Our waste management policy encourages us to adopt sustainable

measures to reduce our negative impact on the environment.
In cement manufacturing solid waste generated during Raw meal grinding, clinkerization,
and cement grinding process is re-collected by means of RABH, ESP and BFs then reinjected
back into the process so that clean environment can be maintained and raw materials can
be conserved effectively. Fly ash waste generated from CPP is used in PPC manufacturing.
Other waste generated from plant maintenance like used oil and metal scrap is disposed off
in responsible manner & as per regulatory guidelines.
At SCL, we strive for “Zero Discharge” status in respect of all our operations and we do not
discharge any process effluent in water bodies or anywhere else. Complying with the new
regulations, we are also in the process of installing new/upgrading existing STPs wherever
necessary. During the reporting period, both hazardous and non-hazardous waste was
disposed of in a responsible manner and we did not send any hazardous waste to landfills.
The detail of the solid waste generated is as follows:

Being in the cement industry, it gives us an opportunity to not only manage our waste but
utilizes waste generated from other industries into our process. We encourage co-
processing wherein we utilize waste generated from industries such as pharma, steel, etc.
into our processes.

Education

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We provide quality education at no cost to children of daily working labours from

surrounding villages through our educational institution under the name of Sagar Vidya
Vihar. In addition, we also support various government-run schools with amenities such
as utensils, furniture, etc.

• Social Performance
Sagar Cements understands that corporate social responsibility is a tool to create value
for stakeholders specifically for the disadvantaged group of the society. Our initiatives
are designed with an objective to create a positive social impact while reducing the
negative environmental impact of our operations. The company has a structured
governance procedure to monitor its CSR activities. The CSR committee is responsible for
the identification and implementation of various projects whose actions are guided by
the CSR policy. SCL's CSR Policy is guided by the following principles: • To conduct its
operations with integrity and responsibility, keeping in view the interest of all its
stakeholders. • It believes that growth and environment should go in hand and hand. • It
looks forward to collaborating with different stakeholders including Governments,
NGOs, Suppliers, and Distributors to tackle the challenges faced by society.

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INTRODUCTION OF THE COMPANY

Sagar Cements Limited was incorporated in the year 1981 with the object, inter–alia, of
manufacturing of cement. The actual commercial journey started on January 26, 1985 with the
production capacity of 66,000 tons of OPC per annum at Mattampally, Nalgonda, Hyderabad. Sagar
Cements Limited, is one of the most modern mini cement plants in the state of Andhra Pradesh. The
most sophisticated state–of–the–art technology it uses is one of the strengths of the company.

The plant is based on Dry Process Rotary Kiln Technology that is used in Standard Quality' cement
companies. As its contribution to the fast-developing modern India, Sagar Group, Sagar Cements has
been playing the major role for 20 years by providing the cement that speaks for itself. Now, with
the help of most sophisticated technology and the trusted consumers, their product range is
spreading its horizons that declare their operations have grown to be among the largest in India.
Since they believe progress is a continuous process, they are committed to become more aggressive
and to be called as, The Preferred Cement Supplier of India. This progress includes but not limited to
high levels of assurance to the customers, greater financial performance for suppliers and
prosperous future to their staff that can help them to play an even larger role in the community.

First Mini Plant: The first mini plant of the company is located at Mattampally, Nalgonda district,
located within 35 km from the National Highway No 9 connecting Vijayawada– Hyderabad. Sagar
Cements Ltd and Vicat S.A. of France set up a 5.5–million–tons a year cement plant at a cost of Rs
2,500 crore in Gulbarga, Karnataka in 2008. Vicat then picked up a 6.67 per cent stake in Sagar
Cements for a consideration of Rs 70 crore. The joint venture, Vicat– Sagar Cements, explores
opportunities for holding assets overseas. This venture gave Vicat an entry into the Indian market
while for Sagar Cements it offers them an opportunity to tap overseas markets. The joint venture has
an equity capital of Rs 720 crore, of which Sagar Cements share was Rs 196 crore and Vicat Rs 524
crore. The balance came as debt, for which Vicat was responsible.

1.1 Background of Study

Job analysis is a very important human resources function. It involves matching the employee with
the most appropriate skills to the best suited job position at the most opportune time. The Human
Resources department and management define job descriptions and specifications for each position
within the organization. Each position in the organization is unique and, therefore, has different
needs and necessities. The skills, past experience and education qualifications differ for each job.
Companies undertake job analysis to understand the requirements for the job. This is a mechanism
through which the company fixes on duties, responsibilities and authority for each of its positions.
Through this, it is able to define the skill set needed for each job. The human resource department
prepares this analysis for each job in the organization and then appoints the appropriate employees
for them.

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Analyzing Job Requirements

This is a procedure where the HR department and management sit down and define the roles, duties
and authority for each individual job. The management then gets a very clear idea on all the chores
an individual would be required to perform for discharging her duties. The duties and authority of a
software engineer would be different from those of a production manager. Accordingly, the
qualifications, expertise and experience would also differ. Unless, the most suited and eligible
candidates are placed on the job, the company cannot expect to have full performance levels.

Analyzing Present Conditions

Job analysis also enables the management in analyzing whether or not its employees are aptly
placed. For example, the management may have incorrectly placed marketing executive in the IT
department. The management then takes stock of the situation and transfers the inappropriately
placed employee. Also, the training needs of the employees are highlighted. Some employees may
need to be already polished on the requirements of their jobs. At other times, the employees may
need to be trained on using the new systems and assets acquired by the company.

Job analysis is also very imperative for defining safety standards for each job position. Some jobs in
the organization are sedentary; other jobs need the employee to commute to different places to
carry out his duties. Certain types of jobs require the company to provide for additional safety of the
employees. For example, laborers who are engaged in the production process may be working with
heavy duty electrical equipment. It is the duty of the management to train its employees to use the
machines cautiously. Also, it is required to provide them protective gear.

Major jobs of HRM Department:

Strategic Human Resource Planning

HR Auditing and Needs Assessments

Workforce Planning

Change Management

Performance Management

Total Compensation, Benefits & Rewards

Industrial & employee Relation services

Some of the department under HRM Department

• Recruitment Secretariat
This section deals with overall design and accomplishment of personnel recruitment policy and
criterion.
• Personnel Admin Section
It is concern for personnel selection, retention, promotion, termination and disciplinary action.
• Planning & Record Section:
It is concern to upkeep and update personnel record with strict confidence and manpower planning
for forthcoming telecom project

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• Training & Vehicle Section
This is Concern for periodic education and training management. It is also concern for vehicle
operation, maintenance and distribution.
• Management dept. & General Admin Section
It deals staff benefit, trade union activity, building upkeep and sanitation.
• Performance Appraisal Section
Concern for maintaining the record of personnel performance appraisal

• Legal Section
It relates all legal issues of the company and performs the legal advisory role and advocacy.

Importance of Job Analysis

According to scientific management, the key to productivity is a precise understanding of the
tasks that constitute a job. If the motions of workers are to become standardized and machine-like,
then it is necessary to be certain about what is to be accomplished, as well as what abilities and
materials are necessary to do the job. For many years, job analysis was considered the backbone of
the scientific clipboards and stopwatches was the method used to determine the most efficient way
to perform specific jobs.

As the popularity of scientific management declined after World War II, however, so did the
popularity of job analysis. With the new emphasis on human relations as the key to productivity job
analysis was used primarily to set salary scales. But in the modern times workers and employers
began to take renewed interest in this area because of concerns about two issues: unfair
discrimination and comparable worth.

There are two areas where unfair discrimination in hiring can occur: in the standards set for being
hired; and in the procedures used to assess the applicant’s ability to meet those standards. Job
analysis addresses the question of what tasks, taken together actually constitutes a job. Without this
information, standards for hiring may appear to be arbitrary or worse, designed to exclude certain
individual or groups from the workplace.

More recently, the issue of comparable worth has also contributed to a new interest in job analysis.
Comparable worth refers to equal pay for individuals who hold different jobs but perform work that
is comparable in terms of knowledge required or level of responsibility. The major issue of the
comparable worth controversy is that women who are employed in jobs that are comparable to
those held by men are paid, on the average, about 65 percent of what a man would earn. In order to
determine the comparability of job tasks so that salaries can also be compared, a proper job analysis
is necessary. Comparable work is an issue of considerable interest to many people.

Reasons for Conducting Job Analysis

• Staffing - Haphazard if recruiter does not know qualifications needed for job
• Training and Development - If specification lists particular knowledge, skill, or ability,
and person filling position does not possess all necessary qualifications, training
and/or development is needed.

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• Performance Appraisal - Employees should be evaluated in terms of how well they
accomplish the duties specified in their job descriptions and any other specific goals
that may have been established.
• Compensation – Value of job must be known before dollar value can be placed on it.
• Safety and Health – Helps identify safety and health considerations
• Employee and Labor Relations – Lead to more objective human resource decisions
• Legal Considerations – Having done job analysis important for supporting legality of
employment practices

Uses of Job Analysis

This knowledge about jobs is used for many purposes, certainly in the field of Human Resource
Management. In particular, where the job is the basis for pay, knowledge of the job is essential
either to make comparisons with other jobs in market pricing or as the first step in evaluating jobs
internally. Thus, failure to secure complete and accurate job information will result in inaccurate
wage setting. Later steps in job evaluation become virtually impossible without adequate job
information.

Job knowledge has many uses in HRM. Organizations use information obtained by job analysis for
recruitment, selection, and placement; organization planning and job design; training; grievance
settlement; as well as job evaluation and other compensation programs People outside the
organization also use information about jobs. Career placement requires the same type of person-
job matching that organizations do. Getting a disabled worker back to work requires knowledge of
jobs in order to determine what jobs the worker can do or can be trained to do. Lastly, job
knowledge is needed in a number of regulatory situations as will be discussed later in this chapter.

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Work design

Job Content
Information
HR planning

Job Analysis Job Specification

and Job
Staffing
Description

Job Context Training

Information

RECRUITMENT NEEDS ARE OF THREE TYPES PLANNED

i.e., the needs arising from changes in organization and retirement policy.

ANTICIPATED
Anticipated needs are those movements in personnel, which an organization can predict by studying
trends in internal and external environment.

UNEXPECTED
Resignation, deaths, accidents, illness give rise to unexpected needs.

• Purpose & Importance of Recruitment

The Purpose and Importance of Recruitment are given below:
Attract and encourage more and more candidates to apply in the organization. Create a talent pool
of candidates to enable the selection of best candidates for the organization. Determine present and
future requirements of the organization in conjunction with its personnel planning and job analysis
activities. Recruitment is the process which links the employers with the employees. Increase the
pool of job candidates at minimum cost.

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• Recruitment Process
The recruitment and selection are the major function of the human resource department
and recruitment process is the first step towards creating the competitive strength and the
recruitment strategic advantage for the organizations. Recruitment process involves a systematic
procedure from sourcing the candidates to arranging and conducting the interviews and requires
many resources and time. A general recruitment process is as follows:

Identifying the vacancy:

The recruitment process begins with the human resource department receiving requisitions
for recruitment from any department of the company. These contain

• Posts to be filled
• Number of persons
• Duties to be performed
• Qualifications required
▪ Preparing the job description and person specification.
▪ Locating and developing the sources of required number and type of employees
(Advertising etc).

▪ Short-listing and identifying the prospective employee with required characteristics.

▪ Arranging the interviews with the selected candidates.
▪ Conducting the interview and decision making

RECRUITMENT PROCESS

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MANAGING
THE
RESPONSE
ADVERTISING
THE VACANCY SHORT -LISTING

RECRUITMENT
PROCESS
PREPARE JOB
DESCRIPTION ARRANGE
AND PERSON INTERVIEWS
SPECIFICATION

CONDUCTING
IDENTIFY INTERVIEW
VACANCY AND DECISION
MAKING

RECRUITMENT CHALLENGE
Recruitment is an important part of an organization’s human resource planning and their
competitive strength. Competent human resources at the right positions in the organization are a
vital resource and can be a core competency or a strategic advantage for it. The objective of the
recruitment process is to obtain the number and quality of employees that can be selected in order
to help the organization to achieve its goals and objectives. With the same objective, recruitment
helps to create a pool of prospective employees for the organization so that the management can
select the right candidate for the right job from this pool.

Recruitment acts as a link between the employers and the job seekers and ensures the placement of
right candidate at the right place at the right time. Using and following the right recruitment
processes can facilitate the selection of the best candidates for the organization.
In this is competitive global world and increasing flexibility in the labor market, recruitment is
becoming more and more important in every business. Therefore, recruitment serves as the first
step in fulfilling the needs of organizations for a competitive, motivated and flexible human resource
that can help achieve its objectives.

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External Sources of Recruitment

1. PRESS ADVERTISEMENTS
Advertisements of the vacancy in newspapers and journals are a widely used source of recruitment.
The main advantage of this method is that it has a wide reach.

2. EDUCATIONAL INSTITUTES
Various management institutes, engineering colleges, medical Colleges etc. are a good source of
recruiting well qualified executives, engineers, medical staff etc. They provide facilities for campus
interviews and placements. This source is known as Campus Recruitment.

3. PLACEMENT AGENCIES
Several private consultancy firms perform recruitment functions on behalf of client companies by
charging a fee. These agencies are particularly suitable for recruitment of executives and specialists.
It is also known as RPO (Recruitment Process Outsourcing)

4. EMPLOYMENT EXCHANGES
Government establishes public employment exchanges throughout the country. These exchanges
provide job information to job seekers and help employers in identifying suitable candidates.

5. LABOUR CONTRACTORS
Manual workers can be recruited through contractors who maintain close contacts with the
sources of such workers. This source is used to recruit labor for construction jobs.

6. UNSOLICITED APPLICANTS
Many job seekers visit the office of well-known companies on their own. Such callers are
considered nuisance to the daily work routine of the enterprise. But can help in creating the
talent pool or the database of the probable candidates for the organization.

7. EMPLOYEE REFERRALS / RECOMMENDATIONS

Many organizations have structured system where the current employees of the
organization can refer their friends and relatives for some position in their organization.
Also, the office bearers of trade unions are often aware of the suitability of candidates.

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Recruitment Management can inquire these leaders for suitable jobs. In some organizations
these are formal agreements to give priority in recruitment to the candidates recommended
by the trade union.

1. FACTORS AFFECTING RECRUITMENT POLICY

• Organizational objectives
• Personnel policies of the organization and its competitors.
• Government policies on reservations.
• Preferred sources of recruitment.
• Need of the organization.
• Recruitment costs and financial implications.

2. HUMAN RESOURCE PLANNING

Effective human resource planning helps in determining the gaps present in the existing
manpower of the organization. It also helps in determining the number of employees to be
recruited and what qualification they must possess.

3. SIZE OF THE FIRM

The size of the firm is an important factor in recruitment process. If the organization is planning
to increase its operations and expand its business, it will think of hiring more personnel, which
will handle its operations.

4. COST
Recruitment incur cost to the employer, therefore, organizations try to employ that source of
recruitment which will bear a lower cost of recruitment to the organization for each candidate.

5. GROWTH AND EXPANSION

Organization will employ or think of employing more personnel if it is expanding it’s
operations.

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COMPONENTS OF THE RECRUITMENT POLICY

▪ The general recruitment policies and terms of the organization
▪ Recruitment services of consultants
▪ Recruitment of temporary employees
▪ Unique recruitment situations
▪ The selection process
▪ The job descriptions
▪ The terms and conditions of the employment
▪ A recruitment policy of an organisation should be such that:
▪ It should focus on recruiting the best potential people
▪ To ensure that every applicant and employee is treated equally with dignity and respect.
▪ Unbiased policy.
▪ To aid and encourage employees in realizing their full potential.
➢ Transparent, task oriented and merit based selection.
➢ Weightage during selection given to factors that suit organization needs.
➢ Optimization of manpower at the time of selection process.
➢ Defining the competent authority to approve each selection.
➢ Abides by relevant public policy and legislation on hiring and employment relationship.

• Conclusion

Job Analysis is an organized study of a job to categorize its major components. The job analysis
process normally observes the job which is being carried out, asking employees and supervisors
questions about the job, tasks, working conditions and KSAs (Knowledge, Skills and Abilities). In an
increasingly competitive and turbulent market, organizations are largely dependent on their
employees for success. The challenge of identifying the right man for the right job, individuals to
fulfill organization need. A large number of potential workforces are available in the employment
market but the challenge for organizations is to identify and select those candidates who could
perform effectively and efficiently. The research highlighted that the starting point in any
recruitment process is an accurate analysis of the job.

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This important aspect of human resource management was being ignored particularly in public
sector jobs. Selection and the assessments chosen for the selection process should be done on the
basis of the requirements of the job. Knowledge is essential on part of the organization in terms of
what constitutes good job performance; what kind of knowledge, skills and abilities are required and
what measures would be effective in assessing these. Despite of the limitations mentioned above,
the results of this study move about the field of human resource management forward by
empirically viewing a link between HR practices like job analysis, job design, job evaluation, job
security, job succession planning and job performance. Impact of job analysis on job performance
reflects that job analysis is in reality a foundation of human resource practices and an imperative
management practice to develop competitive advantage.

The implications of the typical event of the job analysis and other human resource practices on job
performance measures were found remarkable. Altogether this research makes an effort signifying a
substantial positive contribution by Job analysis to job performance. Generally, the findings of this
study were found reliable with the studies conducted in western countries on the contribution of
human resource practices related to the job performance. The worth of present study lies in the
reality that it offers a requisite rationale of theoretical models built on the basis of studies conducted
in the western organization.

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COMPANY PROFILE
Sagar Cements is a prominent player in the field of cement in Andhra Pradesh for the past 25 Years
adopting progressive manufacturing practices, whether it relates to maintaining high standards of
quality of its products or development of its highly valued human resources or the need to keep the
pollution to the barest minimum.

The Company manufactures various varieties of cement like Ordinary Portland Cement (OPC) of 53
grade, 43 grade, Portland Pozzolana Cement (PPC) and Sulphate Resistant Cement (SRC) to suit
different needs of customers and all these products are being sold under the Brand Name “Sagar”
which has already become popular in Andhra Pradesh, has now found its acceptance among the
customers in the neighboring States as well.

The Company employs modern technology in each of its process of manufacture at its Plant and has
adopted progressive manufacturing practices, whether it relates to maintaining high standards of
quality of its products or development of its highly valued human resources or the need to keep the
pollution to the barest minimum.

The Company has a strong committed marketing network comprising various layers like Distributors,
Dealers, C&F Agents, all of whom are served by dedicated marketing personnel. The Company has a
well-designed Organizational Structure and the roles and responsibilities of each of its personnel
have been well defined. The Company believes in the importance of development of Human
Resources as a valuable asset and is endeavoring to enhance its value by organizing various need
based in-house training programmes and encouraging their participation in the external
programmes sponsored by various institutions of repute.

Sagar Cements has a consistent Profit track record and, except for a few years when it was either
executing its expansion plans or the industry as a whole was undergoing a difficult period, it has
been declaring dividend at reasonable percentages.

The company’s Shares are listed on Hyderabad and Bombay Stock Exchanges, where they are
actively traded.

The Company which started its operation with a Cement capacity of 66000 TPA, has gradually
increased it to the level of 2.35 MTPA, while its Clinker capacity has also witnessed a significant
increase from 66000 TPA in 1982 to present level of 2.10 MTPA.

Vision
To provide foundations for society 's future

Mission
To be the India's most respected and attractive company in our industry - creating value for all our
stakeholders.

History

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Sagar Cements has a rich history of providing high quality cement for more than 25 years. Starting of
by being a mini cement plant , our journey started in the year 1985 and is moving into higher gears
with production getting into multi million tonnes per annum.

Organisation
Sagar Cements is managed by a Board, whose members are highly competent and well known. The
Senior Management team consists of highly qualified Professionals with rich experience in the area
of their Specialization.

Group
Sagar is well diversified group serving various sectors of the economy. The group constitutes of

Sagar Cements Limited - Production of Cement & Clinker

Sagar Power Limited - Production of Hydel Power

Panchavati Polyfibers - Production of PP Fabric / Woven Sacks for Cement Industries

RV Consulting - Consulting for setting Cement Plants

Sagarsoft (India) limited -www.sagarsoft.in - Software Services for global Clients

Corporate Governance
Sagar Cements has set itself high standards of corporate governance, ensuring responsible and
transparent company management to enable its long-term success.

CODE OF CONDUCT AND ETHICS FOR DIRECTORS AND SENIOR

MANAGEMENT TEAM

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Sagar Cements being committed to be a good corporate citizen conducts its business as per the
applicable laws, rules, regulations and statutory guidelines as are in force and with highest standards
of business ethics.

It is expected of the Directors and Senior Management Team of the Company to comply with
applicable laws, rules, regulations and guidelines while discharging their respective roles and to
promote honesty in the process apart from abiding themselves by the policies and procedures laid
down for the conduct of the business. The accounts of the Company will be maintained in a fare and
accurate manner in accordance with the relevant accounting and financial reporting standards.

CONFLICTS OF INTEREST
• A conflict situation is deemed to arise directly or indirectly when:

• It is difficult to exercise an independent judgment of the company's interest;

• A Director or a member of the Senior Management Team accepts any personal benefits or
gifts or entertainment beyond the customary level either by himself or through his family as
a result of his position in the company from any person / company with which the company
may have business dealings; A Director or a member of the Senior Management Team
engages in any other business activity that detracts his ability to devote appropriate time
and attention to his responsibilities to the company;

• There exists a significant ownership interest with any supplier, customer or competitor of
the company

• There is any employment relationship between a Director or a member of the Senior

Management Team with any supplier, customer, business associate or competitor of the
company.

While it is expected of a member of the Board and the Senior Management Team to avoid generally
the situations where the 'conflicts of interest' can be deemed to exit, in case of unavoidable conflict
of interest, he should disclose all facts and circumstances thereof to the Board of Directors or any
officer nominated for this purpose by the Board and a prior written approval should be obtained.

FINANCIAL REPORTING AND RECORDS

As the professional and ethical conduct in the matter of financial affairs is essential for the proper
functioning of the company, the officers and employees engaged in the finance functions should act
with honesty and integrity. The persons in-charge of finance and accounting function should prepare
and maintain company’s accounts fairly and accurately in accordance with generally accepted
guidelines, principles, standards, laws and regulations applicable to the company. Internal
accounting and audit procedures shall fairly and accurately reflect all of the company's business
transactions and disposition of assets. There shall be no willful omissions of the company
transactions from the books and records. Any willful material misrepresentation or misinformation
on the financial accounts and reports shall be regarded as a violation of this code.

PROTECTING COMPANY ASSETS

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The assets of the company should not be misused but employed only for the purpose of conducting
the business for which they are authorised. All Directors and members of the Senior Management
Team should strive to protect company's assets and property and ensure efficient use of them.

PROMOTING INTEREST OF THE COMPANY

Directors and Senior Management Team owe a duty to the company to promote its legitimate
interests when the opportunity to do so arises. They should not use company's property,
information or position for personal gains. All Directors and Senior Management Team of the
company must strive to perform their best at all times.

SWOT ANALYSIS

SWOT Analysis for SAGFAR CEMENT

STRENGTHS.
1. It is having a good image and brand loyalty among consumers.
2. Service is good
3. people ask for ACC
4. They have same price prevailing for wholesale at dealers/stockiest retailers end.

WEAKNESS.
1. The competitors are doing much promotional activity rather than ACC Limited that why it
facing more problems in selling of product in the market.

2. Lack of awareness program for consumers.

OPPORTUNITY.
1. Rapid growth is taking place in Bihar and Madhya Pradesh.
2. People are opting for more stable structures and intensive use of cement is taking place,
even government is spending heavily on infrastructure projects. Thus, this is the right time to
fully tap these markets.

3. As Indian core industry is also growing at rate of nearly 10% per annum,it is having a good
future.

4. Foreign direct investment in infrastructure sector going to increase in coming years, which
will increase the demand of cement.

5. Roads are undergoing through the transformation process through which the traditional
method of road building will be replaced by modern concrete roads.

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THREATS.
1. Large number of players in cement industry makes it more competitive for ACC to carefully
price its product and at the same time satisfy its dealers and customers.

2. Players such as Jaypee Cement, Prism Cement, and Birla Samrat are eating up considerable
market share.

3. Due to exponential growth many new international cement companies are expected in
coming years which will bring a tide of change and can start price war.

4. The emergence of small players in this market may increase the competition and start the
malpractices, and heavy discounts to retailers. They can also influence many retailers by
giving better profit margin, and other Benefits.

FINANCE MANAGEMENT:
It is concerned with the acquisition, financing and management of assets with over all goals in
mind. Thus it involves decisions relating to these three aspects all these areas are interrelated
the decision to acquire assets necessitates the financing and management cost effect the
decision to invest. All these decisions determine the firm to its shareholders.

IMPORTANCE OF FINANCIAL STATEMENTS:

The information given in the financial statement is very useful to number of parties as given
below:

Owners:
Owners provide funds for the operations of a business and want to know whether their funds
are properly utilized or not. The financial statement is prepared from time to time to satisfy
their curiosity.

Creditors:
Creditors want to know the financial position of a concern before giving loans or granting
credit. The financial statements help them in judging such position.

Investors:
Prospective investor, who wants to invest money in a firm, would like to make an analysis of
the financial statements of that to know how state proposed investment will be.

Managers:
Management is the art of getting things done through others. This requires that the
subordinates are doing work properly. Financial statements are an aid in this respect because
they serve the manager in appraising the performance of the subordinates. Actual results

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achieved by the employees can be measured against the budgeted performance they were
expected to achieve and remedial action can be taken if the performance is not up to the mark.

TYPES OF THE FINANCIAL STATEMENTS

The term financial statements generally refers to two basic statements viz.,

i. The Income Statement.

ii. The Balance Sheet of course a business may also prepare iii. A statement of Retained

Earnings and iv. A statement of Changes in Financial Position in addition to the above two

statements.

The meaning and significance of each of these statements is explained below:

1) INCOME STATEMENT:
The income statement, (also termed as Profit and Loss account) shows the income and expenses
under different head. The income minus expenditure indicates the profit made by the firm.
Broadly there are three kinds of expenses, Sales income minus the expenses incurred on
operations, gives the operating profit for a given year.

2) BALANCE SHEET:
The Balance sheet is a statement of financial position of a business at a specified moment of
time. It is a statement of assets and liabilities of a firm or what it owes and what it owns, as on a
given date. In a Balance sheet, the assets and liabilities balances are equal to each other, as the
statement is based on the double entry system of bookkeeping.

Financial performance with respect to the operational

performance
2009-10 2008-09
Particulars

33507 27562
Total Income

PBIDT 5985 5759

1872 413
Deprecation

1590 340
Finical Charges

PBT 2524 5006

PAT 1646 3096

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EPS(Rs) 11.48 23.70

NATURE OF FINANCIAL STATEMENT ANALYSIS:

The financial statements s by nature are summary of the stamens recorded in the business and
these statements are prepared periodically generally the accounting period.

According to jhan N.Myer the financial statements are composed of data which are the results
of combination of

1. Recorded facts concerning the business transactions

2. conversion adopted to facilitate the accounting techniques

3. postulates or assumptions mode to end

4. personal judgment used in the application of the conversions and postulates

TYPES OF ANALYSIS:
Two types of analysis are undertaken to interpret the position of the enterprise. They are

1)Vertical analysis

2)Horizontal analysis

Vertical analysis:
It is analysis of relationship between different individual components and in the analysis
between these components and their totals for a given a period of time. Such analysis examines
only the relationship as between different components for a given point of time and does not
shed light on changing the behavior of the above relationship.

It is also regarding as static analysis ,comparison of current assets to current

liabilities or comparison of debt to equity for one point of time or examples of vertical analysis.

Use of financial tools:

Financial tools are of immense se use to a finance manager in as such as they help him in carrying
out his planning and controlling functions. While preparing financial plan for the company finance.

Financial tools are of immense

Use to a finance manager in as such as they help him in carrying out his planning and controlling
functions while preparing financial plans for the company finance manager must know the input
of financial decision on financial condition and profitability of the business enterprise

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The tool of financial serve as hand made to the management in determine the input of his
decision. These tools are equality useful in the sphere of financial control and as much as they
enable the finance manager to undertake constant review of the actual financial operations of
the company. As a whole and of various divisions of the company against the perform balance
sheet and profit and loss account to analyze the cause of major deviations as to take corrective
before it is tool.

The help of financial tools the financial management can rationalize the decisions and reach
the business good Easley. the utility of the financial tools is not limited to the finance manager.
they are equally helpful to top management creditors, investors and laborers.

TECHNIQUES OF ANALYSIS:

An analyst can adopt the fallowing tools for analyzing for the financial statements.

• Comparative statement analysis

• Common size statement analysis • Trend analysis funds flow information.
• Ratio analysis

COMPARATIVE STATEMENT ANANLYSIS:

Comparative financial statement are those statements which statements which are designed to
provide the prospective to the consideration of various elements of financial position embodied
in such statements and balance sheet can be prepared in the form of comparative statements.

COMMANSIZE STATEMENT ANALYSIS:

Common size statement is financial tool of studying key changes and trends in financial position
of the company. In common size statements each item is stated as a percentage exabits the
relation on the individual item of its respective total. Therefore the common size percentage
method represents a type of ratio analysis.

TREND NANLYSIS:
Trend analysis depicts behavior of the ratios over a period of the time and the trends in the
operations of the enterprise. The trend analysis figers are index figers giving a bird s eye of the
comparative data by presenting it over a period of time. This is a horizontal analysis of
statements, often called as a pyramid method of ratio analysis..

FUNDS FLOW STATEMENT:

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Funds flow statements is similar is also known as statement of sources and application of funds
or statements of inflow and outflow of funds.

CASH FLOW STATEMENT:

A cash flow statement is similar in design to funds flow statements, both the statement are
prepared from the data viz, the balance sheets of the concern and additional information made
available both the statements focus on the financial position of the concern.

RATIO ANALYSIS:
Ratio analysis is one of the methods of analyzing financial statements. It measures the
profitability efficiency and financial sources of the business. The relationship between 2 facts,
gross profit and sakes or currency assets and current liabilities is studied and the result is
presented in the form of simple ratios.

FINANCIAL STATEMENTS ANALYSIS:

The end products of the business transactions are financial statements comparing the position
statements or balance sheet and income statement or profit and loss account. Financial
statements are the basis for decision making by the management and as well as all other out
siders who are interested in the afire of firm such as investors, creditors, customers, suppliers,
financial institutions, employee, potential investors, government and general public.

Meaning of financial statements analysis:

A financial statement is a collection of data organized according to logical and consist ant accounting
procedures. Its purpose is to convey on on understanding of some financial aspects of business
firms. these the financial statements generally refer to the two statements.

The position statements or balance sheet

The income stat met or the profit and loss account.

In the words of John N.mayer “The financial statements provide a summary of the accounts of
a business enterprise, the balance sheet reflecting the assets ,liabilities and capital as on a
certain date and the income statement showing the results of operations during a certain
period.

Financial statements are also called financial reports in the words of Anthony” Financial
statements essentially are interim reports presented annually and reflect a division of the life of
on enterprise in to more or less arbiters’ period more frequently a year… RECORDING
FACTS:
The term recording facts refer to the data taken out form the accounting records are
maintained by on the basis of the actual cost data. the original cost or historical cost is the basis
of recording various facts or events or transactions.

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Use and importance of financial statements:

The financial statements are mirror which reflect the financial position and operating and
strengths or weakness of the concern these statements are useful to the management investors
creditors bankers, workers, government, and public at large

George omey points out the fallowing major uses of financial statements….

➢ As a report of steward ship

➢ As a basic for fiscal policy
➢ As a determine the legality of dividends
➢ As a guide to advice dividend action

➢ As a basic for the granting of credit

➢ As information for prospective investor in an enterprise ➢ As a guide to the value of
investor s in an enterprise.
➢ As a guide to the value of investment already made. ➢ As an aid to govt supervision ➢ As a
basis for taxation.

Limitations of financial statements:

Through financial statements are relevant and useful for the concern, still they do not
present a final picture of the concern…

The analysis and interpretation of these statements should be done very carefully. Otherwise,
misleading conclusion may be drawn.

The financial statements sufficient and final reports

➢ Only in term reports and final reports

➢ Lack of precision and definiteness ➢ Lack of objective judgment.

➢ Record only monetary facts.

➢ Historical in nature.

➢ Scope of manipulation, inadequate information

Analysis and interpretation:

The analysis and interpretation of firm statement is essential to bring out my statements behind
the figures in financial statements. the term financial statements analysis includes other analysis
and interpretation. A distinction should be made between the two terms.

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The term analysis is used to mean the simplification financial data by methodic classification of
the data given in the financial statements. The term interpretation means E employing the
meaning and significance of the simplified

However, the both analysis and interpretation are interring linked and complimentary to each
other.

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