Power Plant Company

Location:

India

Posted:

November 29, 2012

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Chettinad Cement Corporation Limited

MANAGEMENT

Chairman : Dr. M.A.M. Ramaswamy

Managing Director : Sri M.A.M.R. Muthiah

Directors : Sri Ramanathan Palaniappan

Sri R. Krishnamoorthy

Sri SP.ST. Palaniappan

Sri K. Ganapathy

Smt. Sheela Rani Chunkath (TIIC Nominee)

Company Secretary : Sri S. Hariharan

Auditors : M/s P.B. Vijayaraghavan & Co.

M/s Seshadri & Jayaraman

M/s Krishaan & Co.

Registered Office : Rani Seethai Hall Building

No. 603, Anna Salai,

Chennai 600 006

Tel : 28292727 Fax : 28291558

Email : *******@****.***

Website : www.chettinadcement.com

PROFILE

CHETTINAD CEMENT CORPORATION LIMITED

The history of the group House of Chettinad is linked The Company commissioned a 15MW Captive Thermal

w t t e9d c d so ds g .I 1 1 t o b r ht eH u eo

ih h eae l aa n 92 ok it h os f Power Plant at its unit at Karikkali in October 2004 and at

Chettinad through a visionary, idealist and born Puliyur in March 2008 to cater to the entire power

entrepreneur Dr. Rajah Sir Annamalai Chettiar who requirements of the Plants thereby reduce the power cost.

believed in Social transformation through business. The

The company has commissioned the first of its two

founder of the House of Chettinad envisaged his

Greenfield Cement manufacturing units with a capacity

companies providing the stimulus for Industrial Growth

of 2 MTPA and 2 x 15 MW Captive Thermal Power Plants

and conceived business as a means of improving the living

at Keezhapaluvur Village, Ariyalur District, Tamilnadu

standards of people.

during the financial year 2008-09.

Following the footsteps of his father Dr. Rajah Sir

The installation of the second unit and a third 15MW

Annamalai Chettiar, Dr. Rajah Sir M.A. Muthiah

Captive Thermal Power Plant at Ariyalur is in an advanced

Chettiar continued to contribute to the nation

stage of progress and is expected to be completed during

building cause and combined his business acumen

the financial year 2009-10. The company is also in the

to establish the Company Chettinad Cement

process of installing a 0.5 MTPA Cement Grinding unit at

Corporation Limited in 1962 to cater to growing

i se i t n f c o ys t a P l y rV l a e K r rD s r c .

t xsig atr ie t uiu ilg, au itit

demand of Cement in the Country. The Company s

first manufacturing unit located at Puliyur, Karur

The Company has proposed to set-up a second cement

District, in Tamil Nadu commenced production in

manufacturing unit with a capacity of 2 MTPA adjacent to

April 1968. Today the group is being steered under

its existing factory site at Karikkali Village, Dindigul

the versatile, dynamic and pragmatic Leadership of

District alongwith a Captive Thermal Power Plant with a

Dr. M.A.M. Ramaswamy and his son Sri M.A.M.R.

capacity of 40 MW.

Muthiah based on the footsteps of Dr. Rajah Sir M.A.

Muthiah Chettiar. Apart from cement, the Chettinad The company is also in the process of setting-up a

House is today engaged in activities as diverse as Greenfield Cement manufacturing unit with a capacity of

granite, engineering, silica, garnet, information 2.5MTPA and a Captive Thermal Power Plant with a

technology, education, medical, plantations, capacity of 30 MW at Chincholi Taluk, Gulbarga District,

shipping, transportation, stevedoring, clearing and Karnataka.

forwarding and logistics having a combined turnover

o o e R .1, 0 m l i n

f vr s 500 ilo. The Company, which has always been striving for Total

Quality, possesses International Certification ISO 9001 :

PRODUCTS 2000, ISO 14001 : 2004 and ISO 18001 : 2000 and takes pride

OPC 43 Grade in being acclaimed as one of the major player in a highly

Super Grade competitive Cement Industry in India.

Sulphate Resistant Portland Cement

Portland Slag Cement Chettinad Cement has attached great importance to social

responsibility and environmental values. This is manifest

From a modest beginning of 2 Lac tonnes capacity i t ei s a l t o o t el t s p l u i nc n r le u p e t

n h ntlain f h aet olto oto qimn

per annum, Chettinad Cement has gradually a a li sp a t .

t l t lns

increased its production capacity to 5 million tonnes per

The Company has achieved many laurels through awards

annum with its three cement manufacturing units at

fr BEST PERFORMANCE in the Cement Industry and

Puliyur, Karikkali and Ariyalur. All the plants of the

for Environmental Excellence.

Company employ the Modern Dry Process Technology.

Chettinad Cement Corporation Limited

PERFORMANCE AT A GLANCE

200*-**-****-** 200*-**-****-** 2008-09

PRODUCTION (In MT)

Clinker 187****-******* 189****-******* 2318789

Cement 221****-******* 268****-******* 3148896

Capacity Utilisation 147-***-***-*** 15

SALES

Cement & Clinker 233****-******* 268****-******* 3141914

FINANCIAL HIGHLIGHTS (Rs. in Lakhs)

Turnover (net) including

Other Income 433**-***** 726**-***** 116868

Gross Profit 9421 119**-***** 346**-*****

Interest & Lease rentals 203*-****-**** 1859 5078

Depreciation 31

11-360*-****-**** 42900

Profit / (Loss) before Tax 427*-****-***** 24684 (914)

Provision for Taxation

Current Tax (Net) 342-*-****-**** 5125

Deferred Tax - (Asset) / L a i i y

iblt 1134 2271 (439) (1005) (5678)

Fringe Benefit Tax 40 27 50 60

Earlier years Income Tax 93 -

Net Profit / (Loss) after Tax 279*-****-***** 16377 (421)

PAID - UP SHARE CAPITAL 295*-****-**** 2950 2950

RESERVES & SURPLUS 117**-***** 233**-***** 32565

RATIOS

PBIDT to Sales 21.74 23.78 32.95 36.41 40.27

PBT to Sales 9.86 12.82 23.26 25.91 0.78

EPS (Rs.) 1.2

33 21.59 37.39 52.10 40.87

Debt to Equity 1.59 13

.7 0.57 0.71 2.09

Book Value per Share (Rs.) 50 59 89 13

3 120

Dividend 40-50-75-100-***

NOTICE TO THE SHAREHOLDERS

conclusion of the next Annual General

Notice is hereby given that the Forty sixth

Meeting on a remuneration of

Annual General Meeting of the members of

Rs. 1,50,000/- (Rupees One lakh fifty

Chettinad Cement Corporation Limited will be

thousand Only) each, plus applicable Taxes

h l a Rani Seethai Hall No.603, Anna Salai,

ed t

if any, besides out of pocket expenses.

Chennai 600 006 on Monday, te 7 h d y o

ht af

September, 2009 a 10.00 A.M. t t a s c t e

t o rnat h

SPECIAL BUSINESS:

following business:

6 To consider and if thought fit, to pass the

ORDINARY BUSINESS:

following resolution as an Ordinary

. To receive, consider and adopt the Profit and resolution, with or without modifications.

Loss Account for the Year ended 31s March,

RESOLVED THAT pursuant to Section 190

2009, the Balance Sheet as at that date and

read with Section 225 and other applicable

the Reports of the Directors and the Auditors

provisions, if any, of the Companies Act,

thereon.

1956, M/s V. Soundararajan & Co.,

2 To appoint a Director in the place of

. Chartered Accountants be and are hereby

Dr.M.A.M. Ramaswamy, who retires by appointed as Auditors of the Company to

rotation in accordance with the Articles of hold Office along with the existing Auditors

Association of the Company and being M/s P.B. Vijayaraghavan & Co., and M/s

eligible, offers himself for re-appointment. Krishaan & Co., Chartered Accountants from

the conclusion of the Forty Sixth Annual

3 To appoint a Director in the place of

. General Meeting until the conclusion of the

Sri SP. ST. Palaniappan, who retires by next Annual General Meeting on a

rotation in accordance with the Articles of remuneration of Rs. 1,50,000/- (Rupees

Association of the Company and being One lakh fifty thousand only) plus applicable

eligible, offers himself for re-appointment. Taxes if any, besides their out of Pocket

expenses.

4 To declare a Dividend on the Equity Share

Capital for the Financial Year 2008-09. By order of the Board,

5 To appoint M/s P.B. Vijayaraghavan & Co.,

and M/s Krishaan & Co., Chartered

Place: Chennai S.Hariharan

Accountants as Auditors of the Company to

Dt : 2t Jl,20.

ae 0h uy 09 Company Secretary

hold office from the conclusion of the Forty

sixth Annual General Meeting until the

Chettinad Cement Corporation Limited

6 Non-resident Shareholders are requested to

Notes :

inform us immediately :

. An Explanatory Statement as required under

a The change of residential status on return

)

Section 173 of the Companies Act, 1956 is

to India permanently.

annexed hereto for Item No.6 in the Notice. b The particulars of the NRE Account, if not

)

furnished earlier.

. A MEMBER ENTITLED TO ATTEND AND

. Pursuant to the Section 205 A (before

VOTE AT THE MEETING IS ENTITLED TO

amendment) of the Companies Act, 1956, all the

APPOINT A PROXY TO ATTEND AND VOTE

unclaimed dividends up to the financial year

INSTEAD OF HIMSELF ON A POLL AND THE

1994-95 have been transferred to the Central

PROXY NEED NOT BE A MEMBER OF THE

Government s General Revenue Account. As

COMPANY. THE PROXY FORM TO BE per the amended Section 205-A, the unclaimed

VALID MUST BE DEPOSITED AT THE dividend amounts out of the Dividend declared

from the financial year ended 31s March, 1996

REGISTERED OFFICE OF THE COMPANY

onwards have to be transferred to the Investor

NOT LESS THAN 48 HOURS BEFORE THE

Education and Protection Fund (IEPF) of the

TIME FIXED FOR THE MEETING.

Central Government after the expiry of seven

years from the date of declaration. Accordingly,

. The Register of Members and Share Transfer

the unclaimed dividend for the financial years

Books of the company shall remain closed from 1995-96 to 2000-01, except where the claim is

01.09.2009 To 07.09.2009 (both days under dispute or kept in abeyance, has been

icuie frtase o sae.

nlsv) o rnfr f hrs transferred to the said Fund within the

stipulated time. Since no dividend had been

declared for the years 2001-02 and 2002-03, the

4 The Company has appointed M/s Integrated

transfer of the unclaimed / un-encashed

Enterprises (India) Ltd., Kences Towers, 2nd

dividend amount relating to the said two

Floor, No.1, Ramakrishna Street, T. Nagar,

fnnilyast teIP de nt aie Te

iaca er o h EF os o rs. h

Chennai 600 017 as the Registrar & Share next remittance of such amount will be only

Transfer Agents to undertake all investor during November, 2011 relating to the dividend

servicing activities, both demat and physical declared for the year 2003-04. The shareholders

who have not claimed / encashed their dividend

segments with effect from 01/04/2003. All

so far may communicate to the company /

concerned are requested to send their

Registrars and get their dividend amount for the

documents and address all their future

Financial Years from 2004 2008.

correspondence directly to the above

8 . All the shareholders who are holding the shares

Registrars.

in Physical Form are advised to get their shares

dematerialized.

. Members are requested to intimate their change

of address, if any, along with PIN CODE to the 9 The details of shareholdings of the Directors

Registrars to facilitate quick receipt of the appointed / re-appointed in this Annual

Annual Reports and other official General Meeting has been disclosed along with

their respective resume in the Annexure to the

correspondences.

Directors Report Corporate Governance .

INTEREST OF DIRECTORS:

EXPLANATORY STATEMENT AS REQUIRED

UNDER SECTION 173 OF THE COMPANIES ACT,

. Sri M.A.M.R. Muthiah, Managing Director of

1956.

the Company is the son of Dr. M.A.M.

Item No. 6:

Ramaswamy, Chairman of the Company and

One of the Statutory Auditors M/s Seshadri & is therefore, deemed to be interested in the

Jayaraman, Chartered Accountants have submitted subject matter under Item No.2 in the Notice.

a letter expressing their intention not to seek re-

. None of the Directors are deemed to be

appointment at the ensuing 46th Annual General

interested in the subject matter under item

Meeting of the Company.

No. 6

The Company subsequently received a Special

Notice pursuant to Section 190 read with Section INSPECTION OF DOCUMENTS

225 of the Companies Act, 1956 from a Shareholder

The following documents will be kept at the

for moving a resolution at the ensuing Annual

Registered Office, during the working hours of the

General Meeting for appointing M/s V.

Company and they are open for inspection by the

Soundararajan & Co., Chartered Accountants as

Statutory Auditors of the Company to hold Office, Members.

along with the two existing Statutory Auditors

. Memorandum and Articles of Association of the

M/s P.B. Vijayaraghavan & Co., and M/s. Krishaan

Company.

& Co., Chartered Accountants, from the

conclusion of 46th Annual General Meeting until the

. Special Notice dated 10.07.2009 received from

conclusion of the next Annual General Meeting.

the shareholder proposing the resolution in

Hence this Resolution under Item No. 6 for the Item No.6.

approval of the Shareholders.

Chettinad Cement Corporation Limited

DIRECTORS REPORT

The Shareholders,

Your Directors take pleasure in presenting the Forty sixth Annual Report and the Audited Accounts of the

Company for the year ended 31s March, 2009.

FINANCIAL RESULTS:

(Rs. in lakhs)

Current Previous

Year ended Year ended

31/03/2009 31/03/2008

Profit before Depreciation and Interest 470**-*****

LESS :

Depreciation 42900 8150

Itrs

neet 57

08 1859

Profit before Tax (1)

94 24684

LESS :

Provision for Income Tax

Current 52

15 96

Dfre (ses /Laiiis

eerd Ast) iblte (68

57) (05

10)

Fringe Benefit Tax 6

0 5

Profit after current and deferred tax (2)

41 16377

ADD :

Provision for Taxation no longer required 19

Surplus brought from previous year 234

50 14879

Total available for appropriation 250**-*****

APPROPRIATIONS

Transfer to General Reserve 1000 2500

Proposed Dividend 2950 2950

Tax on the Proposed Dividend 502 502

Balance Carried over to Balance Sheet 205**-*****

DIVIDEND The Cement Industry was no exception to the

economic slowdown worldwide and in India.

The company has during the financial year 2008-09,

During the year under review, the Industry

changed its accounting policy on method of

maintained the same growth rate of about 8%

charging Depreciation to rates and procedure

in Production and Despatch as it had done in the

prescribed in the Income Tax Act, 1961 under the

financial year 2007-08 where itself the growth

Written Down Value Method. This resulted in the

of the Cement Industry was hampered by

company requiring to provide arrears of

sialn cs o sel ad fe.

prlig ot f te n ul Cnieig

osdrn

Depreciation for previous years as per Accounting

the economic slowdown to be an additional

Standard 6 of Rs. 18147 Lakhs. In view of the same,

block on the path of the Cement Industry, the

the company has incurred a Net Loss after Tax of

industry can be appreciated to have done well

Rs.421 lakhs during the financial year ended

to maintain the same growth rate it had achieved

31.03.2009. However since the company has

ls ya.

at er

accumulated profits in its Profit & Loss Account of

Rs. 25022 lakhs, your Directors are pleased to The Northern region maintained its top slot in

recommend a Dividend on Equity Share Capital of growth in production of 13% followed by the

Rs.10/-per share (100%) for the Financial year 10% growth achieved by the Southern region.

2008-09, from the accumulated profits of the However Eastern region topped the

previous years lying in the Profit & Loss Account. consumption growth with a 11% increase

followed by Southern region which showed a

PRODUCTION AND SALES FOR THE YEAR

10% growth.

2008-09

Your company has commissioned the Line-1

Greenfield Cement manufacturing unit with a

capacity of 2 million Tonnes per Annum at

Clinker produced - 2318789

Keezhapaluvur Village, Ariyalur Taluk/Dist.,

Cement produced - 3148896

Tamil Nadu in the last quarter of the financial

Cement and Clinker Sales - 3141914

year 2008-09 thereby achieving another

OPERATIONS

milestone in its path of steady but strong growth

This is covered under the topic Management and performance policy. The company also

Discussion and Analysis. crossed 3 million tonnes production for the first

time in its history and this has been achieved

MANAGEMENT DISCUSSION AND ANALYSIS

without considering the output of the new

a Industry structure and developments

) plant, which shows that there is always room for

growth even at the top, and your company is

The world economy has seen one of its worst

best equipped to harness that growth.

period during the last financial year. Since the

economic pundits are not foreseeing any b Opportunities, Threats, Risks and Concerns

)

considerable recovery in the near future, it is

I i si ta i avriyle opruiy Te

t s ad ht n dest is potnt. h

going to be a turbulent period ahead for India

same way there lie great opportunities to grow

too at least in the short term. But having been

in these times when the economy of our country

thoroughbred with risks associated with a

and the world is at a low. The price of steel, the

fragile economy as a developing nation and with

major raw material for construction industry

a soundly regulated financial and Industrial

and coal, the major fuel for production of

sector, one must admit that India has absorbed

Cement have tumbled to its lowest in recent

the shocks of the world economic meltdown

times. This is a great opportunity for the

quite resiliently with much less impact than most

construction and infrastructure sector to look

developed countries.

for growth and development. And with the new

The economy registered a growth of 7% during Government at the centre promising focus on

the financial year 2008-09, as against the development of infrastructure and impetus to

estimated 9% at the beginning of the financial housing sector, there is definitely a lot of

year. This reduction can be mainly attributed to opportunities for the Cement Industry both in

the global economic slowdown, which had its short term and long term future.

cascading affect on the demand and supply

equation of major commodities as also the

housing sector.

Chettinad Cement Corporation Limited

Power, fuel and transportation cost have always The second cement plant at Ariyalur with

been an impediment for growth of Cement a capacity of 2 million tonnes is expected to

Industry. Fuel costs may be the first to increase be commissioned during the Financial year

in a resurgent economy and that will not only 2009-10. The company has started the process

increase the cost of production of cement but of land acquisition for its proposed Greenfield

also the cost of transportation. So a lot of Cement Plant with a capacity of 2 Million Tonnes

support from the Government is needed for the per Annum (MTPA) at Karnataka. Meanwhile,

cement industry also, to achieve the ultimate the Board of Directors of the company have

cause of development of infrastructure and approved a proposal for installing a second

lending impetus to housing sector. Cement manufacturing facility with a capacity

of 2 MTPA adjacent to the company s existing

c Segment wise or Product wise performance

)

unit at Karikkali. All these proposed plants

should be commissioned and ready for

The Company has no reportable segments.

production by the time the Indian and world

Given below are the Product-wise production

economy is fully on the path of resurgence and

figures for the financial year 2008-09

your company would be in a position to make

Grades of Cement Quantity in M.T

the most of the economic recovery.

OPC -43 Grade & 53 Grade 291503

e Internal control system and their adequacy

)

SRC - PC 17827

The Company has got an adequate system of

PPC 2509198

internal control in place commensurate with the

Slag PSC 330368

size of its operation and is properly designed to

TOTAL 3148896

protect and safeguard the assets of the

Company. There is a proper system for

recording all the transactions which ensures that

every transaction is properly authorized and

d) Outlook

executed according to the norms.

Infrastructure development and providing

The Company has developed an in-house

impetus to housing sector being top on the

Internal Audit Department which is

agenda of the Government of India, the future

contributing to the continuous process of

surely provides a good reason to be optimistic

sharpening the Internal Control mechanism by

for the Indian Cement Industry with the per

introduction of various concurrent audit

capita consumption of cement well below world

systems and facilitating regular evaluation of the

averages.

system by the management.

The optimism of the Cement Industry about its

) Discussion on financial performance with

outlook is well justified and evident from the

respect to operational performance.

fact that a comparison of the performance of the

Industry for the first two months of the current

The production and Sale of Cement of your

financial year with the same period in the

company has crossed 3 Million Tonnes during

previous financial year reveals a growth of

the financial year 2008-09, for the first time in

about 12% in production and 11.5% in dispatch.

ishsoy Tefc ta ti hsbe psil

t itr. h at ht hs a en osbe

This performance is commendable considering

from its existing plants at Puliyur and Karikkali

tefc ta teeooyi silntttlyi is

h at ht h cnm s tl o oal n t

due to debottlenecking and improvement in

path of recovery.

efficiency, displays the astonishing results that

can be achieved through hardcore commitment

Your company has always reposed great

towards improving efficiency of operations at

confidence in the strength and ability of Cement

all levels. The production and sale of Cement

Industry to achieve a sustained growth and has

during the financial year 2008-09 was 3148896

always taken the lead when it comes to realize

and 3141914 tonnes respectively. Considering

the full potential of future growth

the economic slowdown, the Country and

opportunities. The company has commissioned

world is facing, a modest growth of 8.37 % in

and commenced commercial production in the

Production and 9.36% in Sales Volume,

first of its two Greenfield Cement Plants at

achieved by the Company is a very

Ariyalur with a capacity of two million tonnes

commendable performance. The company

in the last quarter of the financial year 2008-09.

recorded a turnover of Rs. 1137.45 crores for the Gross power generation during the year under

financial year 2008-09 as against Rs. 931.93 review was 12.31 Crore Units with a Plant load factor

crores in the previous year. of 97.59%.

The Gross Profit before Depreciation and Tax PULIYUR FACTORY

for the financial year 2008-09 increased by 27%

The 15 MW CPP commissioned at the Company s

to Rs.419.86 crores as against Rs. 328.34 crores

factory at Puliyur on 22.03.2008 is catering to the

in the financial year 2007-08. The company has

complete requirement of Power at the Puliyur

changed its accounting policy on the method of

Factory. The Gross Power generation during the

charging Depreciation by adopting Written

year under review was 9.76 crore units with a Plant

Down Value rates and procedures prescribed

load factor of 80%.

in the Income Tax Act, 1961. This entailed the

company to charge arrears of Depreciation for

PROGRESS REPORT ON ARIYALUR PROJECT

its previous years of Rs 181.47 Crores in

compliance with the Accounting Standard 6, Cement Plant Line-I

which resulted in the company making a Net

We are glad to inform that your company has

Loss of Rs. 4.21 crores for the financial year

completed the installation of line-1 Cement Plant at

2008-09.

Keezhapalavur Village, Ariyalur District, Tamil

g Material developments in Human resources /

) Nadu with a capacity of 2 MTPA and the Plant was

Industrial relations front, including number of commissioned and commenced commercial

people employed. production during the last quarter of the financial

year 2008-09. The new Plant had produced 81744

As always, the Industrial relation during the

tonnes of Cement during the financial year 2008-09.

current year also has been very cordial and

contributed to mutual development. Various The installation of two 15 MW CPP at Ariyalur was

seminars, counseling sessions, trainings etc., also completed and commissioned during the

were conducted to improve the quality of the second quarter of the financial year 2008-09. The

manpower available thereby increasing the two units had together generated 1.98 Crore Units

productivity and efficiency of the personnel. of Power during the financial year under review.

The number of personnel employed in the

Cement Plant Line-II

company is 1221.

The company had commenced work on installation

WINDMILL OPERATIONS

of Line-II Cement Plant at Ariyalur with a capacity of

The Power Generation from the company s 2 MTPA during the last quarter of the financial year

Windmills for the financial year 2008-09 was 1.88 2007-08. The civil work has been almost completed.

crore units. The RKVAH import from the TNEB was The supply of the main equipments has begun and

0.77% during the financial year 2008-09 (Previous fabrication and mechanical work of the same is in

year 1.18%). During the financial year 2008-09, the progress. The installation of the Line II Cement

company sold 1.72 crore units to Tamilnadu Plant is expected to be completed and commissioned

Electricity Board (TNEB) since there was excess during the financial year 2009-10.

power available with the company after installation

Installation of the Third CPP

of 15 MW Captive Thermal Power Plant at Puliyur.

The company has taken steps to install a third 15 MW

The company installed a new Chettinad 600 KW

CPP at Ariyalur to fully cater to the requirements of

Windmill at Karikalipudur in February 2009. The

the 2 x 2 MTPA Cement Plants. This would make the

company conducted a preventive maintainance of

whole unit fully independent of the state s grid

its Windmills to avoid unexpected breakdowns.

supply. We would require grid power only for

CAPTIVE THERMAL POWER PLANTS stand-by and transmission. The civil work for the

CPP has been almost completed and erection work

KARIKKALI FACTORY

for major machineries has begun. The third CPP is

The 15MW Captive Thermal Power Plant (CPP) expected to be commissioned and fully operational

commissioned at the factory at Karikkali in during the financial year 2009-10.

October 2004 is functioning satisfactorily. The

Chettinad Cement Corporation Limited

OTHER NEW PROJECTS INDUSTRIAL RELATIONS

CEMENT GRINDING UNIT AT PULIYUR The Employees at all ranks of the Company have been

extending their fullest co-operation for the smooth

The company has commenced work for installation

conduct of the affairs of the Company and

of an additional Cement Grinding Unit with a

maintenance of cordial Industrial relations. The

capacity of 0.5 MTPA at its existing Unit at Puliyur to

Directors wish to place on record their appreciation

make use of the additional Clinkerisation capacity

to the employees of the Company at all levels.

available on account of de-bottlenecking. The civil

work for the same is in progress and the unit is PUBLIC DEPOSITS

expected to be commissioned during the financial

The company has no unmatured / unpaid Fixed

year 2010-11.

Deposits at the end of financial year 2008-09.

NEW CEMENT PLANT AT KARIKKALI Deposits totaling Rs.1.40 lakhs already matured for

repayment, were not claimed by the Depositors till

The fact that that Indian Cement Industry has not

the end of the financial year.

been greatly affected by the global economic

recession and the renewed pledge by the CONSERVATION OF ENERGY, TECHNOLOGY

Government of India to focus on development of ABSORPTION, FOREIGN EXCHANGE

Infrastructure and support housing sector has been EARNINGS AND OUTGO

an inspiration for your company to plan for further

As required under Section 217 (1) (e ) of the

expansion of its productive capacity.

Companies Act, 1956, the details regarding Energy

The company has substantial Limestone reserves in Conservation, Technology Absorption, Foreign

its mines at Dindigul District, Tamil Nadu to cater Exchange earnings and outgo are given in the

not only to the existing requirements of its Plants at Annexure hereto.

Puliyur and Karikkali but also to any further

STATUTORY INFORMATION REGARDING

expansions that can be planned there.

EMPLOYEES

In view of the above, the Board of Directors have

The particulars regarding employees falling within

approved the proposal to install a Second Line

the purview of Section 217 (2-A) of the Companies

Cement Plant adjacent to the company s existing

Act, 1956 and the Rules made there under, are

Cement manufacturing Unit at Karikkali Village,

mentioned in annexure hereto.

Dindigul District, Tamil Nadu, with a capacity of 2

Million Tonnes and CPP with a capacity of 40 MW, DIRECTORS RESPONSIBILITY STATEMENT

to cater to the Power requirements of the second

Pursuant to Section 217 (2- AA) of the Companies

Unit.

Act, 1956, the Directors confirm that :

PROPOSED CEMENT PLANT PROJECT AT in the preparation of the Annual Accounts, the

KARNATAKA

applicable accounting standards had been

The company has received in-principle approval followed.

from the Government of Karnataka for setting up a

(i The Directors had selected such accounting

Cement Plant with a capacity of 2.5 MTPA alongwith

policies and applied them consistently and made

a 30 MW CPP at Chincholi Taluk, Gulbarga District,

judgements and estimates that are reasonable

Karnataka State. The company has also obtained

and prudent so as to give a true and fair view of

permission and exemption under the Karnataka

the state of affairs of the Company at the end of

Land Reforms Act, to acquire land in Chincholi

the Financial Year and of the profit or loss of the

Taluk for mining purposes and installation of Plant

Company for that period.

as above.

(i) The Directors had taken proper and sufficient

The company has commenced acquisition of lands

care for the maintenance of adequate

and is in the process of applying for other related

accounting records in accordance with the

Government approvals required for starting the

provisions of this Act for safeguarding the assets

project.

of the Company and for preventing and

detecting fraud and other irregularities.

( v The Directors had prepared the Annual

Accounts on a going concern basis.

CORPORATE GOVERNANCE supply and demand conditions affecting the selling

prices of finished goods, availability of inputs and

As per the provisions of the Listing Agreement with

their prices, changes in the government regulations,

the Stock Exchanges, a Report on Corporate

tax laws, economic developments within the country

Governance is given in an Annexure hereto.

and outside and other factors such as litigations and

DIRECTORS Idsra rltos

nutil eain.

Dr. M.A.M. Ramaswamy and Sri SP.ST. The Company assumes no responsibility in respect

Palaniappan, Directors retire under Clause 102 of the of the forward looking statements which may

Articles of Association of the Company and being undergo changes in the future on the basis of

subsequent developments, information or events.

eligible, offer themselves for re appointment.

AUDITORS ACKNOWLEDGEMENT

The Board of Directors wish to thank all the

The Auditors, M/s P. B. Vijayaraghavan & Co.,

M/s Seshadri & Jayaraman and M/s Krishaan & Shareholders, Government Authorities, Financial

Co., Chartered Accountants retire at the ensuing Institutions and Bankers, Suppliers, Customers and

Annual General Meeting and they are eligible for re- all the categories of Employees for their continued

appointment. assistance, support and direction to the company

during the year under review.

One of the statutory Auditors M/s Seshadri &

Jayaraman, Chartered Accountants have submitted ADDENDUM

a letter expressing their intention not to seek re-

Auditors Report :

appointment at the ensuing Annual General

Meeting of the Company. The Board has taken note Regarding the liability, if any, under the provisions

of the same and thanked them for their services of Jute Packaging Materials (Compulsory use in the

rendered as statutory auditors of the Company Packing Commodities) Act, 1987, the Note No.10 of

the Notes forming part of the Accounts is self-

CAUTIONARY STATEMENT

explanatory and the Directors opine that as the

Statements made in this Report, including those amount of liability is not ascertainable, necessary

provision can be made in the year in which the actual

stated under the caption Management Discussion

laiiywudaie

iblt ol rs.

and Analysis describing the company s objectives,

expectations or projections may constitute forward

looking statements within the meaning of

applicable securities laws and regulations. For and on behalf of the Board,

M.A.M. RAMASWAMY

Important factors that could influence the

Place : Chennai Chairman

Company s operations include global and domestic

D t : 2 rd June, 2009

ae 3

Chettinad Cement Corporation Limited

ANNEXURE TO THE DIRECTORS REPORT

Disclosure under sub-section 1(e) of Section 217 of the Companies Act, 1956.

A. CONSERVATION OF ENERGY KARIKKALI FACTORY:

a Energy conservation measures taken:

) Optimisation of low voltage range from 380 V

to 410 V.

PULIYUR FACTORY:

All Plant lighting to be switched ON using LDR.

a Replaced 125 kw panel with motor in place of

)

existing DC motor in cooler fan 2 Nos. Installation of VFD for main crusher bag filter.

Captive Power Plant at Karikkali:

b Replaced existing conventional chokes to

)

energy efficient chokes - 100 Nos. No proposals are in hand as all the energy saving

activities are already implemented at project stage

c I s a l t o o H r o i f l e i c o e s c i n.

) ntlain f amnc itr n olr eto

isl.

tef

d Change of Alite & Refratherm bricks to save

)

ARIYALUR FACTORY:

thermal energy.

No proposals are in hand as all the energy saving

e I s a l t o o 4N s o a d t o a u i b gf l e s

) ntlain f o. f diinl nt a itr

activities are already implemented at project stage

to reduce air pollution.

isl.

tef

) Installation of 100 Nos. of High capacity water

Captive Power Plant at Ariyalur

sprinklers to avoid fugitive emission.

No proposals are in hand as all the energy saving

g Captive Power Plant of 15 MW capacity is

)

activities are already implemented at project stage

commissioned during March 2008.

itself. Pet coke addition of 10 15% started to reduce

KARIKKALI FACTORY:

fe cs.

ul ot

a Installation of VFD for Cement Mill bag filter fan

)

in place of dampers to reduce pressure drop

) Impact of measures of (a) and (b) above on

and power consumption.

Contact this candidate