INTRODUCTION

Simply, cash flow statement indicates the amount of

cash receipts and the amount of cash payments or
disbursements during a specified time. It outlines from
where cash was generated and to where it expensed. In
other words, it reports the cash inflows and cash
outflows, during a time period.
The cash flow statement shows the net increase or
decrease in cash and explains the causes for the changes
in the cash balance, during a certain time period. The
major business activities that result in either net cash
inflow or net cash outflow are Operating, Financing and
Investing activities.
According to Anthony, “Cash flow statement is a
statement prepared to indicate the increase in the cash
resources and the utilization of such resources of a
business during the accounting period.”

DEPARTMENT OF BUSINESS MANAGEMENT 1

 COMPANY PROFILE

Cement Industry is one of the largest industries of the

world and occupies predominant place as one of the
basic industries for development and its employment
generation capacity. Cement ranks next to steel in
construction material and so is the basis of all modern
construction.

John Smeaton, who is also known as “father of civil

engineering” and credited for design of many bridges,
canals, harbors etc. was the first proclaimed civil
engineer and pioneered the use of ‘hydraulic lime’, which
led to discovery of modern cement.

The common cement or Portland cement was prepared

and Patented by Joseph Aspdin in 1824.
In the later part of 19th century, cement production was
taken up by many countries many decades after the first
patent was taken by Aspdin in England.

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The manufacture of Portland cement was started in

England around 1825. Belgium and Germany started the
same in 1855. America started the same in 1872 and
India started the same in 1904.
The first cement factory was installed in Tamil Nadu in
1904 by South India Industry Limited and then onwards
a number of factories manufacturing cement were
started. Our country is the fifth largest producer of
cement in the world and is expected to become the
second largest, after China, by the turn of the century.

Cement is a key infrastructure industry. In our country, it

has been decontrolled from price and distribution on 1st
March, 1989 and de-licensed on July 25th, 1991.
However, the performance of the industry and prices of
cement are monitored regularly.

India is the world’s second largest producer of cement

after China with industry capacity of over 200 Million
Tonnes. With the boost given by the government to
various infrastructure projects, road network and housing
facilities, growth in the cement consumption is
anticipated in the coming years. In order to meet the
expanding demand, cement companies are fast
developing new plants.

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The cement industry is poised to add 111 Million Tonnes

of annual capacity by the end of 2009-2010, riding on
the back of approximately 141 outstanding cement
projects. 95% of the production is consumed
domestically and only 5% is exported. Demand is
growing at more than 10% per annum. More than 90% of
production comes from large cement plants.

The Indian cement industry comprises of 132 large

cement plants with an installed capacity of 148.28 Million
Tonnes and more than 365 small cement manufacturing
plants with an estimated capacity of 11.10 Million
Tonnes per annum. The Cement Corporation of India,
which is a Central Public Sector Undertaking, has 10
units.

There are 10 large cement plants owned by various

State Government. The total installed capacity in the
country as a whole is 204.29 Million Tonnes as on
August 31, 2008.

Among the leading domestic players in terms of cement

manufacturing are- Ambuja Cement, Aditya Birla Group
(Ultra Tech Cement). ACC Ltd., Binani Cement, India
Cements, J. K. Cements, Century Cements, Jaypee
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Group, Madras Cements, Dalmia cements, etc. They are

not only the foremost producers of cement but also enjoy
a high level of equity in the market.
India is producing different varieties of cement like
Ordinary Portland Cement (OPC), Portland Pozzolana
Cement (PPC), Portland Blast Furnace Slag Cement
(PBFS), Oil Well Cement, Rapid Hardening Portland
Cement, Sulphate Resisting Portland Cement, White
Cement, Blended cement, etc. Production of these
varieties of cement conform to the BIS Specifications.
Ready-mix concrete (RMC) is sometime preferred to on-
site concrete mixing because of the precision of the
mixture and reduced worksite confusion. The Indian
RMC business is growing by 25 per cent every year. In
India only 2-3 per cent cement consumption by cement
industry goes through RMC, as against 60 per cent in
developed countries. At present, India has 200 RMC
plants across the country.

Lafarge, the world’s second largest cement maker has

bagged Larsen and Toubro’s RMC business. Lafarge will
be acquiring 66 concrete plants located across India, in
key markets such as Delhi, Kolkata, Mumbai and
Bangalore with a total market share of approximately 25
per cent.

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Government initiatives in the infrastructure sector,

coupled with the housing sector boom and urban
development, continue being the main drivers of growth
for the Indian cement industry. Increased infrastructure
spending has been a key focus area over the last five
years indicating good times ahead for cement
manufacturers. The government has increased
budgetary allocation for roads under National Highways
Development Project (NH-DP).

This coupled with government’s initiatives on the

infrastructure and housing sector fronts would continue
to remain the key drivers. Appointing a coal regulator is
looked upon as a positive move as it will facilitate timely
and proper allocation of coal (a key raw material) blocks
to the core sectors, cement being one of them.

Other budget measures such as cut in import duty from

12.5 per cent to nil, removal of 16 per cent countervailing
duty, 4 per cent additional customs duty on Portland
cement and differential excise duty are all intended to
cut costs and boost availability.

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 COMPANY PROFILE

Bharathi Cement[1] Corporation Private Limited (BCCPL)

is a cement manufacturing company in India.

It was established and incorporated on 12 May 1999, as

Raghuram Cement and Minerals Private Limited. It is a
joint venture of Vicat Group, France in India. Bharathi
Cement has a 2 production line with using state-of-the-
art technology which is having a total capacity of 5
MTPA and it is located at Nallalingayapalli, in Kadapa
district of Andhra Pradesh (AP). The cement is marketed
and sold as “Bharathi Cement” since the year 2009.

The Company was incorporated on May 12, 1999, as

Raghuram Cement and Minerals Private Limited. The
ownership of the company was changed and the
company was renamed later as Bharathi Cement
Corporation Limited on August 6, 2008. In April 2010,
Vicat SA, France acquired and this is a majority stake in
the company. Later, the company name was changed to
Bharathi Cement Corporation Private Limited from the
date 1 September 2010.

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