ocl india ltd. · tisco/jamshedpur plant and jindal steel and power plants at angul, ... the...
TRANSCRIPT
OCL INDIA LTD.Registered Office: Rajgangpur, Odisha - 770017, India
www.ocl.inOCL INDIA LTD.ANNUAL REPORT 2013-14
Corporate OverviewSustainable – Theme Amplification 01
OCL India Ltd. – At a Glance 02
The Management Speaks – Mr. Gaurav Dalmia 06
What makes us Sustainable? 07
Board of Directors 14
CONTENTS
Financial StatementsStandalone Financial Statements 47
Consolidated Financial Statements 79
Management ReportsDirectors’ Report 16
Management Discussion and Analysis 20
Corporate Governance Report 37
Corporate InformationPRESIDENTSMr. M. H. DalmiaMr. R. H. Dalmia
DIRECTORSMr. Pradip Kumar Khaitan – ChairmanMr. Gaurav Dalmia – Executive Vice Chairman & Managing DirectorMr. D. N. DavarDr. S. R. JainDr. Ramesh C. VaishMr. Puneet Yadu DalmiaMr. V. P. SoodMr. D. D. Atal – Whole Time Director & CEO
BANKERS / FINANCIAL INSTITUTIONSState Bank of IndiaUnited Bank of IndiaPunjab National BankUCO BankAXIS Bank Ltd.International Finance CorporationExport-Import Bank of IndiaYes Bank Ltd. HSBC Bank
AUDITORSV. Sankar Aiyar & Co. Chartered Accountants
CEMENT AND REFRACTORY WORKS & REGISTERED OFFICERajgangpur-770 017 (Odisha)
KAPILAS CEMENT WORKSCuttack-753 004 (Odisha)
Bengal Cement WorksAshok Nagar, Medinipur-721 101 (West Bengal)
DELHI OFFICE17th Floor, Narain Manzil, 23 Barakhamba Road,New Delhi-110 001
With growth around the corner, we are working with our continued contribution to the economic, social and environmental values. We are taking steps in the direction of sustainable business practices. By building on our innate strength of operational excellence, product
innovation, cost prudence and expanding capacities; we are preparing ourselves for the future and continuing our growth by establishing logical organizational and governance structures. A sustainable today and a sustainable tomorrow is the motto that is helping us develop products and processes to meet the needs of today while remaining attentive to new developments on the horizon.
2
OCL INDIA LIMITED ANNUAL REPORT 2013-14
The hisTory Historically known as Orissa Cement Ltd., OCL India is a renowned
name in eastern part of India today. The Company in its initial years
pioneered the construction of the prestigious Hirakud Dam and
today is associated with many such landmark buildings.
OCL is one of the first cement companies to develop Slag-Blended
cement, utilizing steel plant waste for high strength cement & IRST-
40 Cement for railway sleepers. Its other innovative and specialized
range includes oil well cement and masonry cement.
With cement gaining ground the Company diversified into refractory
business in 1954. Today OCL is among the largest composite
refractory plants in the country. The Company’s refractory division
manufactures Silica, Basic Burnt Magnesia Carbon, Fireclay &
High Alumina Bricks, Continuous Casting, Slide Gate Refractories,
Castables & Precast blocks Basic and Silica high alumina Ramming
Mases/Mortars among others. Globally OCL is amongst the few
select producers of coke oven silica bricks.
The businesses
CEMENTCement Manufacturing is OCL’s prime business contributing to
almost 80% of revenue every year. Its brand “Konark” is one of the
leading brands in East India with strong presence in Odisha, West
Bengal, Bihar and Jharkhand.
OCL has been associated with some of the big monuments/
buildings of India including the Jagannath Temple, Puri, Odisha and
TISCO/Jamshedpur Plant and Jindal Steel and Power Plants at Angul,
Odisha to name a few.
The Cement plants of the Company are located in Rajgangpur and
Kapilas in Odisha. A new plant has been commissioned this year,
which is in Medinipur in West Bengal. This capacity addition takes
the total capacity to 6.7 Mn TPA for cement manufacturing from
5.35 Mn TPA earlier.
REFRACTORYThe Refractory division of the Company is bestowed with a capacity
of 1, 06,400 TPA. It exports its product across 5 continents covering
countries like Canada, USA, Brazil, UK, Sweden, Netherlands,
Hungary, Spain, Italy, Turkey, Japan, South Korea, China, Thailand,
Malaysia, Indonesia, Australia, Egypt, Kenya, South Africa, Saudi
Arabia, Jordan, Qatar, Iran, UAE, Kuwait, Pakistan, Bangladesh, Sri
Lanka & many more. Besides India, Refractory operations are also
undertaken through OCL China Ltd., a step-down subsidiary of OCL
Global Ltd. - a subsidiary of OCL.
3
Corporate Overview Management Reports Financial Statements
VisionVision of OCL encompasses the following:
Grow profitably with commitment to
customer satisfaction
Strive for excellence
Be # 1 in chosen areas
Continuously develop a committed team
of people
Build good corporate image & high
customer esteem
Endeavour to serve society
GeoGraphic presenceOver the years, OCL has substantiated its
presence in eastern part of India through
gradual outreach to the states of Odisha,
West Bengal, Jharkhand and Bihar. The
Company has its corporate office in Delhi.
Mission OCL works with the following mission
statement:
OCL is in the business of Cement and
Refractories. These will continue to be
our prime business focus areas
We shall endeavor to build a vibrant and
responsive organization with a team of
motivated people driving for excellence,
achievement and high performance
We will create conditions and climate for
empowerment through enhancement
of Knowledge, Attitudes and Skills with
emphasis on multi-skilling
At a Glance
4
OCL INDIA LIMITED ANNUAL REPORT 2013-14
The revenue of the Company is mainly contributed to by the
cement business. It contributes ~80% to revenue every year.
The ultimate goal of OCL is to progress well by penetrating
deeper into the existing markets of east India.FY10
1374
1477
1458
1809
1849
FY11 FY12 FY13 FY14
NET SALES (` IN CR.)
Financial Highlights
OCL has been consistently increasing its investment each
year, which has helped it strengthen its foothold in its existing
markets. With efforts put in to maintain cost efficiency, the
Return on Capital Employed is also rising gradually.
CAPITAL EMPLOYED (` IN CR.)
FY10 FY11 FY12 FY13 FY14
796
844
903
1038
1109
CAPITAL EMPLOYED ROCE (%)
32%
17%
4%
22%
12%
The Profit before Tax for the Company has picked up
considerably well given the dismal situation of the economy
at present. When the situation improves, OCL is sure to surge
ahead with even better growth. PBT
PBT MARGIN (%)
PROFIT BEFORE TAx (` IN CR.)
FY10 FY11 FY12 FY13 FY14
255
152 38 226
133
19%
10%
3%
12%
7%
5
Corporate Overview Management Reports Financial Statements
The aggregate amount of physical goods owned by a business
has been moving up each year for OCL, as shown by the Gross
Fixed Assets. FY10
1309
1808
1270
1907
1212
2001
1188
2137
1392
2489
FY11 FY12 FY13 FY14
FIxED ASSETS (` IN CR.)
NET FIxED ASSETS GROSS FIxED ASSETS
The Net Value of the business in terms of issued share capital and
retained earnings has been moving up over the years for OCL.FY10
796
884
903
1039
1110
FY11 FY12 FY13 FY14
NET WORTH (` IN CR.)
The PAT Margin (%) depicts the growth cycle of the Company
to be on an increasing trajectory. With the growth avenues
coming its way with growing demand, OCL is confident of
moving ahead. PAT
PAT MARGIN (%)FY10 FY11 FY12 FY13 FY14
164
115 32 156 98
PROFIT AFTER TAx (` IN CR.)
12%
8%
2%
8%
5%
6
OCL INDIA LIMITED ANNUAL REPORT 2013-14
What lies behind us and what lies before us is tiny compared to what lies within us.
“ “
The Management Speaks
7
Corporate Overview Management Reports Financial Statements
Dear Shareholders,
Let me begin with a quote, “What lies behind us and what lies before us is tiny compared to what lies within us”. This
is the key message I would like to convey to you all this year. We have been existent since India got its independence.
There have been tough times throughout our path but we have shown resilience and have come out stronger.
This year the economic situation improved a bit and there has been a rise in demand compared to last year. However,
the destruction caused due to Phailin and excessive monsoons affected our markets. We faced the brunt of natural
calamities for almost a quarter of the year yet we managed to bounce back.
With growth now picking up, we are hopeful of a gradual recovery soon. India is catching up on urbanization and
hence the demand for construction materials is expected to grow considerably. In rural areas, we expect demand to
increase due to rise in disposable incomes and the growing consciousness about pucca houses over kuccha houses.
This year, amidst all this happening around us, we have looked at consolidating ourselves through our inherent
capabilities like strength and resilience. By bringing up our new plant in Medinipur in West Bengal, we have enhanced
our capacity by 1.35 MTPA to reach potentially to 6.7 MTPA. Regarding our mines issue in Lanjiberna, matters are
resolved and for the next two decades, the operations in the mines will go on uninterrupted. On the other hand, our
captive power plants have stabilized to suffice our requirements completely.
Through our internal control systems and imbibed rationale of cost optimization, we have made ourselves strong
enough to sail through tough times. The overall result of operations has also poised us strong enough to sustain
ourselves. With revenue of `1849 Crores in FY14 over `1809 crores last year, we are confident of achieving
our growth targets going forward. The company is operating under optimal debt equity ratio of 0.58, thus, has
sustainability to bear volatility.
During the year we have commissioned a 2.5 MW Solar Power Plant for use of green energy and to trade in power
market to harness solar certificate. This will help us contribute to the society through reduced carbon emissions
and hence pollution. Your Company will continue doing such things in future which could enhance its contribution
to the green cause.
In FY15, we aim to continue growing both internally and externally. Internally, we have to be continuing on
improving our growth horizon through increased efforts in cost optimization, efficiency maximization and similar
ground endeavors. Externally, we still have to go a long way in penetrating even deeper into our existing as well
as new markets. We have addressed the raw material and power issues cohesively during the year and shall see it
bringing benefits to us going forward.
The zeal and the unity with which the team at OCL works is commendable and I acknowledge their respective
contributions. I thank all the shareholders, employees, stakeholders, governments and the community at large for
the support they have bestowed on us. We, at OCL, look forward for your trust in us to continue in future.
Sincerely yours,
Gaurav Dalmia
Executive Vice-chairman & Managing Director
8
OCL INDIA LIMITED ANNUAL REPORT 2013-14
Sustainability demands self-reliance. When we say we are sustainable, we have significantly enhanced our capabilities and have reached a level where we are reliant on our own inherent strengths.
OCL has almost made it itself immune to the raw material and power shortage this year. Our lime stone requirements have been sorted through Lanji Berna mines coming into play. We are in receipt of all approvals and other permissions for a longer period of time.
Market affinity and raw material proximity enables us to control freight costs and have an edge over peers.
This bout of self-reliance makes us sustainable for years to come. We have secured our future and are ready for the next leap of growth owing to these achievements.
We have also stabilized our two captive power plants of 27 MW each to make ourselves self-reliant for power. So, no longer we need to depend on power grids. This year we also have made a significant step towards commissioning a solar power plant which is not only a step towards more power, it also makes us using a renewable source of energy while contributing to make society pollution-free.
9
Corporate Overview Management Reports Financial Statements
Sustainability demands growth prospects. If
we have the potential to grow in future, we
are sustainable.
With our strong fundamentals in
place, we are making full use of our
attained resources to achieve our
vision. Our business segments–cement
and refractories–both have performed
consistently well over the years. Despite
given the impact of Phailin and excessive
monsoons this year, we have been able to
effective way to reflect our governance and functionality.
We are continuing on our good work in terms of using waste products for our business segments. We were among one of the first to use steel waste to create slag -blend cement.
maintain our revenues. We are keeping ourselves prepared for the future by maintaining our fundamentals in place.
This year we have added one more feather to our cap in form of a new cement plant at Medinipur, West Bengal, which we have commissioned much ahead of the scheduled time. We now operate with 6.7 MTPA of capacity.
Our focus is on building ourselves as a well-footed organization in terms of our presence in the existing 4 markets. We are making concerted efforts on our business through continuous R&D. Another effort in this direction is intense marketing and selling, which is another area where we are consciously focused.
With strong governance, we are continuing our focus on reducing the cost burden by taking effective steps like working on our finance costs. Other than operational efficiencies, we are also working towards cost management in an
10
OCL INDIA LIMITED ANNUAL REPORT 2013-14
Sustainability demands accurate actions at correct time.
We also believe in actions taken at correct time. We have been able to execute excellence in operations due to our effective time management and timely actions.
We achieved power self-sufficiency this year with our 2 CPPs running smoothly to meet our power needs. With this we have been able to economize the power consumption.
As a result, we recently completed our Midnapur plant 6 months ahead of its stipulated completion time. With this we are already a step ahead in our long-term plans of further advancements.
11
Corporate Overview Management Reports Financial Statements
Sustainability demands strong governance.
We believe in making appropriate and complete disclosures to our stakeholder universe. We have been strictly adhering to a compliance process in terms of obtaining necessary licenses, permissions and compliance procedures.
Our learned and experienced Board of Directors acts as a pillar of strength for our smooth operations. The efforts of the Board of Directors are always for Company’s benefit. All important decisions of the Company are being taken by the Company’s management in supervision of the Board.
The reliable and strong functioning of business is always dependent on its management. With their eye for future strategies, OCL has been able to place itself today.
12
OCL INDIA LIMITED ANNUAL REPORT 2013-14
Sustainability means ability to pay back.
We believe in paying back to the environment through least amount of pollution and harm to the environment. We are in the process of internalizing the utilization of waste heat generated for power generation. This year, alternate Fuels were put to use to diversify fuel mix.
We also believe in paying back to the society on regular and contingent issues.
School buses, Remedial education centers
etc., are run by the Company.
As part of a tribute to our employees, we
always engage them through different
channels. The newsletter “Darpan”
is circulated all over the Company’s
offices, which is a collation of the key
personal and professional happenings
for the employees. This way a feeling of
belongingness is nurtured amongst the
employees.
This year, when Phailin affected parts of
Odisha, we pitched in to donate `51 Lakhs
to the Chief Minister of the State of Odisha
for reconstruction purposes. Regarding
relief work, polythene sheets and other
materials were provided to the people in
affected areas.
On a regular basis, OCL involves itself with
society interactions through initiatives like
organizing Counseling sessions for child-
bearing mothers at their door step. Free
13
Corporate Overview Management Reports Financial Statements
14
OCL INDIA LIMITED ANNUAL REPORT 2013-14
Board of Directors’ Profile
Mr. praDip KuMar KhaiTan, Chairman
Mr. Khaitan is a renowned lawyer and is a senior partner in Messrs Khaitan & Company, Advocates. He has varied and rich experience of several years in commercial and corporate laws, tax laws, arbitration, joint ventures, merger and acquisitions and restructuring and demergers besides acumen in other business activities.
Mr. GauraV DaLMia, Executive Vice-chairman & Managing Director
Mr. Gaurav Dalmia has been associated with OCL India Limited for over two decades. He is a member of the Dalmia industrial family with substantial business interests in India, UK and USA across cement, industrial ceramics, engineering, sugar, information technology and investments. He is a member of the Investment Committee of India Value Fund, which manages approximately $1.5 billion. He is Executive Co-Chairman & Managing Director & CEO of Landmark Property Development Company Limited. Mr. Dalmia is a Co-Founder and Managing Partner of G.T. I. Capital Group, a multi-faceted investment company.
Mr. D. n. DaVar, Chairman, Audit Committee
Mr. Davar is an eminent professional, formerly Chairman of IFCI Limited, a position he held for two consecutive terms spreading over eight years. He has vast, varied, national and multilateral experience and expertise in Finance, Banking, Corporate Laws and aspects relative to governance of variegated industrial / business enterprises. He has been a Fellow of the Economic Development Institute of the World Bank and a part time Consultant to the World Bank, United Nations International Development Organization (UNIDO) and Kreditanstalt fur Weideraufbau (KFW). Presently he is on the Boards of several reputed companies / corporations, training institutions and non-governmental (social) organizations.
Dr. s. r. Jain, Chairman, Stakeholders Relationship Committee
Dr. Jain is the former chairman of Steel Authority of India Limited, Coal India Limited and Heavy Engineering Corporation Limited. He has variety of experience in the business arena with specialty in steel, coal and heavy industry.
15
Corporate Overview Management Reports Financial Statements
Dr. raMesh c. Vaish, Director
Dr. Vaish is an eminent Chartered Accountant. He is also a lawyer and economist and obtained Ph.D. in Economics from University of Florida, USA. He has over 51 years of professional experience in accounting, taxation and international finance and investments. He is also a recognized author on subjects relating to mind, body and spirit, and his last three books dealing with these subjects have been widely acclaimed in intellectual circles.
Mr. puneeT yaDu DaLMia, Director
Mr. Puneet Yadu Dalmia serves as the Managing Director of Dalmia Cement Bharat Ltd. He has over 17 years of experience in the cement industry. He was the co-founder and chairman of Jobs Ahead, one of the most profitable e-recruitment websites in India. Jobs Ahead was acquired by Monster. com, a Nasdaq listed multinational. Mr Dalmia is a gold medalist MBA from IIM, Bangalore and also holds a B.Tech degree from IIT Delhi.
Mr. V. p. sooD, Director
Mr. Sood was the Whole Time Director of our Company for over 7 years. He joined the Company in 1963. He has very rich experience of about 48 years during which period he served as personnel chief of OCL, then as a cement divisional head and then as a head of refactory division before becoming the Whole Time Director. Mr. Sood holds a masters degree in social work from University of Delhi.
Mr. D. D. aTaL, Whole Time Director & CEO
Mr. Atal is associated with the Company for about 7 years holding the position of Whole Time Director since 2010. Mr. Atal is instrumental in overall achievement of our Company. He has vast experience in the industry. He has worked for 24 years with Grasim Industries, for 2.5 years with JK Cement Works and for 8 years with National Newsprint & Paper Mills Limited.
16
OCL INDIA LIMITED ANNUAL REPORT 2013-14
Directors’ reportFor the Year Ended March 31, 2014
The Directors of your Company are pleased to present their Sixty
Forth Annual Report together with the audited accounts of the
Company for the year ended March 31, 2014.
Working results
DividendThe Directors recommend payment of dividend for the Financial
Year ended March 31, 2014 of `4/- per paid up equity share of `2/-
each.
AppropriationsIt is proposed to transfer `120 Crore to the General Reserve while
`155.58 Crore are proposed to be retained in the Profit and Loss
Account and carried to the Balance Sheet.
Operations
The operational results of the current year vis a vis the previous
year have registered an increase of 2.19% in net sales and decrease
of 26% and 28.8% in the operating profits and profit before
depreciation and tax, respectively.
For a detailed analysis of the performance of the Company for 2013-
14 reference is invited to the chapter on Management Discussion
and Analysis of this report.
expansion and Future plansYour Company has pleasure in informing you that 1.35 MnTPA
cement manufacturing unit in West Bengal has successfully
commissioned in the month of March, 2014.
Your Company has also Commissioned 2.5 MW Solar Power Plant
at its Kapilas Cement Manufacturing Works for use of green energy
and to trade in power market to harness Solar certificate in the
month of March, 2014.
Your Company is also in the process of setting up 4.2 MW Waste
Heat Recovery Power Plant at Rajgangpur, attached to Line-II
clinkerisation plant, to generate power from waste heat of the
cement unit. There is a delay in placing the order because the
company could not get approval from the authorities for considering
the power generation from this Co-generation plant as a substitute
of cogeneration obligation of our 2x27 MW Captive Thermal Power
Plants, without which there will not be economic viability as the
Company already has 100% self sufficient Captive Power. Efforts are
going on to get it recognized as cogeneration obligation.
The refining of steel adds value and the present trend of refining
by special refractory component is growing in steel industries.
Keeping in view the present scenario your company has expanded
the capacity of precast - special product manufacturing facility
at Rajgangpur. The technology for manufacture of other refining
system is being explored and your company expects installation
of manufacturing facility for similar refining refractory/metallic
equipments in near future.
Progress upon Captive Coal BlockRadhikapur (West) Coal Mining Private Limited, the joint venture
company incorporated for development of coal block at Radhikapur,
(` Lakhs)
2013-14 2012-13
Net Sales 1,84,854.19 1,80,883.30
Operating Profit 32,756.46 44,191.51
Less: Interest 6807.38 7,704.09
Depreciation 12,640.72 13,843.39
Profit before Taxation 13,308.36 22,644.03
Provision for Taxation
Current tax 3,039.95 5,900.00
Tax for previous Year 0.00 200.00
Deferred tax 688.80 905.44
MAT Credit available for set off -208.02 -
Profit after taxation 9,787.63 15,638.59
Add: Brought forward from previous year 20434.01 19,570.91
30,221.63 35,209.50
Transfer to General Reserve 12,000.00 12,000.00
Transfer to Debenture Redemption Reserve
- 123.67
Proposed Dividend 2,276.01 853.50
Tax on Dividend 386.81 145.05
Interim Dividend - 1,422.50
Tax on Interim Dividend - 230.77
Surplus carried to Balance Sheet 15,558.81 20,434.01
30,221.63 35,209.50
17
Corporate Overview Management Reports Financial Statements
District Angul, Odisha along with Rungta Mines Limited and Ocean
Ispat Private Limited, the other Joint Venture partners, has received
environment clearance and recommendation to Government
of India for Forest Clearance has also been sent by Odisha State
Government. The land acquisition process is yet to start by Odisha
Industrial Infrastructure Development Corporation for which joint
venture company has already deposited the necessary advance
money. Meanwhile, due to slow process of statutory clearances,
Inter Ministerial Group has reviewed the progress of coal block and
decided to recommend de-allocation order. Company has received
de-allocation order. Your company as well as joint venture company
has filed a writ petition in Hon’ble High Court of Delhi and got stay
against de-allocation. The fate of the coal block will be decided on
merit basis along with other similar cases.
Directors
Shri Pradip Kumar Khaitan, Director of the Company, shall retire by
rotation at the forthcoming Annual General Meeting in accordance
with the provisions of the Companies Act, 2013 and Company’s
Articles of Association and being eligible, offer himself for re-
appointment.
Shri D. N. Davar, Dr. Sheo Raj Jain, Dr. R. C. Vaish and Shri V. P.
Sood, the existing Independent Directors, shall be so appointed at
the Annual General Meeting in terms of Section with 149 of the
Companies Act, 2013 for a term of five years with effect from April
01, 2014.
Listing of the Company’s SharesThe Company’s equity shares continue to be listed on the Bombay
Stock Exchange Limited and the National Stock Exchange of India
Limited.
Directors Responsibility StatementIn terms of provisions of Section 217 (2AA) of the Companies Act,
1956, your Directors confirm that:
a) In the preparation of the Annual Accounts, the applicable
accounting standards have been followed, along with proper
explanation relating to material departures, wherever applicable;
b) The Directors have selected such accounting policies and applied
them consistently and made judgments and estimates that are
reasonable and prudent so as to give true and fair view of the
state of affairs of the Company as on March 31, 2014 and of the
Profit of the Company for the year ended on that date;
c) The Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with
the provisions of the Companies Act, 1956 for safeguarding the
assets of the Company and for preventing and detecting fraud
and other irregularities; and
d) The Directors have prepared the annual accounts of the Company
on a going concern basis.
subsidiariesThe Annual Reports of OCL Global Limited, OCL China Limited
and Odisha Cement Limited (“Subsidiary Companies”) for the
Financial Year ended March 31, 2014 are not being attached
with this Annual Report of the Company in terms of Ministry of
Corporate Affairs’ General circular number 2/2011 dated February
08, 2011 read with Section 212 of the Companies Act, 1956. The
annual accounts and the related information of the Subsidiary
Companies shall however be available to the shareholders of the
Company and shareholders of Subsidiary Companies, seeking
such information at any point of time. The annual accounts of the
Subsidiary Companies shall also be open for inspection by any
shareholder(s) at the Registered Office of the Company and of the
Subsidiary Companies concerned.
Consolidated Financial Statements
In compliance with the Accounting Standard 21 on Consolidated
Financial Statements, this Annual Report also includes Consolidated
Financial Statements for the Financial Year 2013-14.
Management Relations with Employees and LabourRelations of the Management with Employees and Labour remained
cordial during the year under review and the industrial peace and
harmony was maintained in the organization.
Fixed DepositsAs on March 31, 2014 there were 14 fixed deposits aggregating
`12.01 Lacs which remained unclaimed beyond due dates, out of
which deposits aggregating `1.58 Lacs have since been repaid.
18
OCL INDIA LIMITED ANNUAL REPORT 2013-14
Particulars of EmployeesThe particulars of the employees as required under Section 217(2A)
of the Companies Act, 1956 read with the Companies (Particulars of
Employees) Rules, 1975 are set out in Annexure-I to the Directors
Report.
However, having regard to the provisions of Section 219(1) (b) (iv) of
the said Act, the Annual Report excluding the aforesaid information
is being sent to all the members of the Company and others entitled
thereto. Any member interested in obtaining such particulars may
write to the Company at its registered office.
resuMe oF heaLTh, enVironMenT anD saFeTy perForMance
Your Company has already implemented EHS system in its both
Refractory and Cement Division and is strictly complying its
requirement.
Your Company has planted about 16000 additional trees during
2013-14 making a total plantation of 489771 trees in and around its
plant, colony and mines.
To create environment awareness among employees “World
Environment Day” was celebrated on the 5th June, 2013. Similarly
“National Safety Day” was also celebrated on the 4th March, 2014
to refresh Safety awareness among the employees in the plant.
Cement Division of your Company has received the Certificate of
Appreciation Award in the Large Business Organisation category in
the Environment Excellence Award 2013 from Indian Chamber of
Commerce (ICC).
Refractory Division of your Company had unique achievement with
calendar year 2012 and also 2013 being ACCIDENT FREE YEAR.
The Division has surpassed its previous record of 8,95,227 man
days accident free and as on December 31, 2013 it has achieved
17,24,933 man days being accident free. As awareness to the
Rajgangpur colony residents and employees, the Division took out a
rally during early hours on January 01, 2014 through colony, Cement
Works and Refractory Works. All the workers of Refractory Division
were felicitated on the occasion by the Whole Time Director.
Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo, etc.Information required under Section 217(1)(e) of the Companies Act,
1956 read with the Companies (Disclosure of Particulars in the Report
of Board of Directors), Rules, 1988 with regard to conservation of
energy, technology absorption and foreign exchange earnings and
outgo are given in Annexure-II, which forms part of this report.
corporate GovernanceAs per Clause No. 49 of the Listing Agreement, report on Corporate
Governance is given in Annexure-III, which forms part of this Report.
Unclaimed Suspense AccountIn terms of clause 5A of the Listing Agreement, the Company has
opened the demat account in the name and style of “OCL India
Limited - Unclaimed Suspense Account”.
Corporate Social ResponsibilityCorporate Social Responsibility has become a way of life in your
Company. With a view to promote socio economic condition
of people of the community surrounding it’s plant and mines,
your Company has implemented many new initiatives on
Health, Education, Drinking Water, Livelihood Training, Women
Empowerment, etc. at all locations during 2013-14.
Your Company has engaged one reputed NGO “SEWAK” for
implementing a program on “Mother and Child Health Care” in
12 revenue villages surrounding its factory and mines area. Your
Company has established four Remedial Coaching Centres in villages
for providing quality education to students and strengthening
their foundation. It has introduced bus service for school going
children of remote villages and facilitated them to attend their
classes regularly without any hassle. It has engaged a Hyderabad
based NGO “NIRMAN” for providing career counseling to students
and guiding unemployed youths in finding suitable employment.
Your Company has organized training programs on tailoring, dress
designing, artificial jewellary making, phenyl making, driving,
mason, welding, security guard etc and has made 300 unemployed
youths employable. Your Company has adopted 132 women self
help groups and has taken up initiative for building their capacity. A
number of training programs on income generation activities were
also organized for making them self sufficient. Your Company has
donated `51 lakhs (including the employees’ contribution) to Chief
Minister’s Relief Fund for relief and rehabilitation of people affected
by Phailin in Odisha.
auditors and auditors reportM/s V. Sankar Aiyar & Co., Chartered Accountants, Statutory Auditors
of the Company, holds office until the conclusion of the forthcoming
Annual General Meeting and is eligible for re-appointment.
The Company has received from M/s V. Sankar Aiyar & Co.,
Chartered Accountants, New Delhi consent to act as auditors of the
Company, if reappointed at the ensuing Annual General Meeting
19
Corporate Overview Management Reports Financial Statements
and certificate in terms of section 139 and 141 of the Companies
Act, 2013 (the Act) and the Companies (Audit and Auditors) Rules,
2014, to the effect that their re-appointment, if made, would be
within the prescribed limits and they are eligible for appointment
and are not disqualified for re-appointment.
The notes to accounts referred to in Auditors’ Report are self
explanatory and, therefore, do not call for any further comments.
cost auditThe Company has received from M/s R. J. Goel & Co., Cost
Accountants, having office at 31, Community Center, Ashok Vihar,
Phase – I, New Delhi – 110 052 and having firm registration no.
00026, consent to act as cost auditors, if so appointed by the Board
of Directors, and certificate to the effect that their re-appointment,
if made, would be within the prescribed limits under Section 141(3)
(g) of the Companies Act, 2013 and that they are not subject to
disqualifications specified in Section 141(3) the said Act. The Cost
Auditors have further certified that they are independent firm
of Cost Accountants and are at arms length relationship with the
Company.
The due date for filing of Cost Audit Report by the Cost Auditor in
xBRL format was September 30, 2013 and the same was filed on
September 19, 2013
Acknowledgements
Your Directors wish to place on record their appreciation of
the support provided by your Company’s Bankers and Financial
Institutions.
Your Directors acknowledge the dedication and commitments of
the employees at all levels and also take this opportunity to thank
all the valued customers who have appreciated the Company’s
products and have patronized them.
Your Directors convey their grateful thanks to the Government
Authorities (Central & States), shareholders, distributors and
dealers for their continued assistance, co-operation and patronage.
For & on Behalf of the Board
Place: New Delhi Gaurav Dalmia D. D. AtalDate: May 13, 2014 Executive Vice Chairman Whole Time
& Managing Director Director &Chief Executive
Officer
20
OCL INDIA LIMITED ANNUAL REPORT 2013-14
Management DiscussionAnalysis&
Global EconomyThe year 2013 spelt slow and steady recovery world over. With
the global slowdown now showing signs of desertion, the dismal
slowdown as per the estimates is going to be over soon. While
North America showed positive signs of revival with a 1.9% growth,
emerging economies displayed a better performance with a 4.7%
growth over FY12. IMF projects global growth at 3.7% in FY 2014,
rising to 3.9 % in FY 15. Countries like the United States of America
and Japan are expected to grow at 2.2% and 1.7 % respectively,
owing to a strong pick up in the second half of 2013. Emerging
markets and developing economies are expected to see an increase
in growth to 5.1% in FY 14 and to 5.4%in FY15.
Indian Economy
Being one among the emerging economies, India also experienced a
moderate growth during FY13 with a growth rate of 4.4%. However,
going forward it is expected to improve given the factors like
upheaval in demand, infrastructure growth, fiscal and monetary
streamlining of policies and structural reforms. CSO predicts it to be
around 4.9% for FY14. Agriculture sector is expected to contribute
3.8% to this growth. The Secondary sector is expected to grow by
0.8% as against a 1.2% last year. Services sector, as has been the
trend in the last decade, is again seen as the catalyst to pull the
growth through 6.9%.
The Secondary sector, comprising of manufacturing, electricity and
construction sectors is expected to grow in a manner wherein the
electricity gas and water supply sector is expected to go up by 6%
over last year. The construction sector is seen growing by 1.7% only
against the 1.1% growth last year. This is in tandem with the present
slowdown situation at hand. On the other hand, a lot of investment
projects are seeing the light of the day due to acceleration in project
approvals. However, the growth in investment projects is still not
very imminent and has shown a declining trend as seen in the
exhibit below.
Global Cement Industry overviewCement, being an integral component of every infrastructure today,
is in high demand due to focus on infrastructure development,
urbanization and increased housing needs. With the upsurge in
construction of commercial and residential buildings, there is a shift
in demand in favor of the cement manufacturers all over the globe.
Cement industry has different demand patterns in developed
and emerging markets. Since, the developed world has already
matured to a significant level of urbanization; the demand for
cement and construction activities is limited there compared to the
developing world. The way things are rapidly gaining pace in the
developing countries even they are looking for major turnaround
in their infrastructure and urbanization processes. Speaking of the
geographic segmentation, China commands more than 50% of
the global demand as well as production of cement. India is also
amongst the top three producers of cement. It is also a major
consumer along with China.
Cement is subject to complexities of high transportation cost due
to its bulky nature. It also faces barriers of entry due to its cost
and nature. Given these reasons, multiplied by a fall in domestic
demand, big cement manufacturers have been on a buying spree
in developing countries. This upsurge of entry of the big players has
forced in excessive capacity into the emerging countries leading
to fall in prices and increase in fierce competition across the
developing countries.
16%
25%
59%
16%
24%
60%
2012-13 2013-14E
Contribution of Economic Sectors
Tertiary sector Secondary sector Primary sector
(Source: Central Statistical Office)
21
Corporate Overview Management Reports Financial Statements
Being influenced directly by growth in the infrastructure sector,
there is more to expect out of the cement industry in the wake of
an increase in investment all across the globe.
Indian Cement IndustryWith an overall installed capacity of ~350 million tones, the Indian
cement industry is globally competitive. It is comprised of 185 large
and 365 small cement manufacturers, mainly. Apart from fulfilling
domestic cement requirements, the industry also exports cement
and clinker to around 30 countries across the globe. The domestic
consumption in the year 2013 alone was ~260 million tonnes. The
construction sector overall contributes close to 7% to the country’s
GDP every year.
With the growing urbanization and rise in middle class’ income,
there is an anticipated upsurge in cement demand over the coming
years. The 12th Five year plan also envisages that the sector would
need to raise its capacities to ~470 million tonnes by 2017 to fulfill
the growing needs of the country. The Indian Government plans to
increase investment into infrastructure to US$ 1 trillion during the
stated period.
Cement Sector production trends have been encouraging at a CAGR
of 9.7% with a production volume of 272 million tonnes over the
period of 2006-2013. Cement consumption on the other hand is
expectedly closing at 265 million tonnes during the year, growing at
a CAGR of 8% during the same period. Given the present scenario,
cement consumption in India is expected to rise by 10.7% over the
12th five- year plan. (Source: IBEF)
2011
229
222
2012
247
242
2013
272
265
2014
300
293
2015
332
324
PRODUCTION CONSUMPTION
Eastern India Cement SectorEast India contributes to approximately 18% of India’s cement
demand and 14% of the total installed capacity. The cement
demand in this part of the country has been growing at a CAGR of
7% compared to a 9% growth overall in the country from 2010-13.
In FY 15 capacity addition of 6 Million Tonnes (nearly 9% of total
current capacity) is further expected.
OCL India is one of the oldest and leading players in the region. The
Company has enhanced its presence and expects to capitalize on
its capacity addition in Medinipur in West Bengal. The market is
expected to grow by 6.5% in the year 2014-15, while the Company
is targeting a growth of 24% during the period.
Challenges faced by the cement industry: The cement industry thus
is deemed to face certain challenges due to this demand and supply
mismatch. A few renowned challenges can be identified as follows: -
Low capacity utilization – Almost 60% of demand comes from
the housing sector and the rest comes from other industrial
and infrastructural sectors. With both the residential and
commercial construction being low, there is a lag of cement
demand vis a vis its supply. This is mainly due to the influx of
more and more cement manufacturers in the country adding to
the supply side. This year, 24 MnT capacity was added to take
the existing capacity to 370 million Tonnes (Source: IBEF). East
India, however is yet to witness any spurt in capacity addition
going forward.
Supply dependency - The performance of the cement industry
depends on regular and consistent supply of Coal, Power and
Railways. All these inputs are in the public sector, over which
the industry has no control and are inadequate in supply due to
impoverished arrangements.
Government support - Inconsistent supply of inputs and logistics
support from the Government undermines the performance of the
sector.
CEMENT SECTOR CONTRIBUTION AT 7%
2012-13
2013-14
TERTIARY SECTOR5 59% SECONDARY SECTOR 25% CONSTRUCTION 8% ELECTRICITY, GAS & WATER SUPPLY 2%
MANUFACTURING 16% PRIMARY SECTOR 16%
TERTIARY SECTOR5 60% SECONDARY SECTOR 24% CONSTRUCTION 7% ELECTRICITY, GAS & WATER SUPPLY 2%
MANUFACTURING 15% PRIMARY SECTOR 16%
22
OCL INDIA LIMITED ANNUAL REPORT 2013-14
High taxation - The Cement industry at present is burdened with
60% tax rate, which is a strong bottleneck for the manufacturers to
comprehend.
(Source: Cement Manufacturers’ Association Annual Report 2012-2013)
The Road AheadThe Cement Manufacturers’ Association (CMA) predicts India’s
cement production capacity to reach 550 million TPA by 2020,
which will involve adding a further 230 million TPA. There are factors
favorable to this aspect of estimation which could be summarized
as below:-
Structural advantages: Residential sector will provide a strong
push to the cement demand. Given the rapid urbanization and
increasing per capita income combined with Government housing
schemes to support rural and urban sectors through housing
schemes etc., are expected to provide the stimulus. With a stable
government and adequate support to the upcoming projects, the
demand is expected to go up significantly. In East India alone,
there is a housing shortage of around 4.59 million houses in the
urban areas, equivalent to around 25% of the country’s urban
housing shortage.
Low per capita consumption - The Indian Cement industry holds
tremendous future growth potential. This is evident from the fact
that the per capita consumption of cement is much less compared
to the world average. India’s low per capita consumption of
cement, which is less than 200 kg, is also one of the main reasons
for strong interest shown by the foreign players. Per capita cement
consumption in East stands at 115 kg compared to all India
consumption, which presents huge potential for the region.
High infrastructure spending - According to India’s 12th Five-Year
Plan (2012-17) document, the two segments most important
to construction activity are infrastructure and housing. Since,
infrastructure spending is expected to go up to 9% of gross domestic
product (GDP) or USD 1 trillion for the Plan period (2012-17), this
will translate into double-digit growth for the demand of cement.
For eastern India, total infrastructure outlay has been increased by
2.9 times in the Plan.
Dedicated freight corridor - A 3300 KM long dedicated freight
corridor is going to be built by Dedicated Freight Corridor
Corporation of India Limited between Eastern and Western regions
as part of two such corridors proposed in East - West and North -
South India.
Rise in middle class income – With the growth in Indian middle class
Income, there is an upsurge foreseen in the construction and housing
sectors, going forward. Also, with rapid urbanization as expected in
the coming years to continue, there is more scope for the cement
industry’s growth, going forward. With the growth escalating to the
regions, East India also is part of the growth horizon going forward.
Government impetus - With the various government programs,
such as National Rural Employment Guarantee and low-cost housing
in urban and rural area schemes like Jawaharlal Nehru National
Urban Renewal Mission and Rajiv Gandhi Aawas Yojana in place,
the housing demand is expected to get a boost.
Refractory industry overviewThe global refractory market is forecast to grow at a CAGR of 0.7%,
reaching 39.8 million tonnes by 2017, according to an independent
study. Although growth has slowed in recent years, refractory
demand and value is still very significant. In the present scenario,
acquiring overseas interests, whether at raw material sources,
processing plants, or clients to export to, could become vital for
refractory companies especially in developed countries.
The principal applications of refractories are in iron and steel
industries, cement, glass, non-ferrous metals, petro-chemicals and
fertilizer industry, chemicals, ceramics and even thermal power
stations and incinerators. Steel is the largest market for refractories,
both historically and at present.
Indian refractories industry boasts of a capacity of nearly 2.4
million tonnes. It is catering to the steel industry in India, majorly
23
Corporate Overview Management Reports Financial Statements
apart from the demand from glass, cement and other allied
industries.
Refractory industry also faces some profound challenges which are:
Fall in demand from steel industry – Being the biggest customer
for refractories, the fortune of the refractory industry in India
have invariably been influenced by the growth and technological
changes in the Steel industry. The sector contributes to nearly 2%
of the gross domestic product (GDP). At present, with the domestic
consumption of steel soaring high, steel makers are relying on
imports from outside (mainly China) for their refractory needs.
China being a major supplier has imposed restrictions on exports
of raw materials to support its local market. This in turn acts as an
impediment to Indian refractory makers as steel producers directly
import refractories as finished products from China.
Low capacity utilizations - As alike cement, the refractories also
face low utilizations as the products are imported from outside by
the final consumers.
Growth of Cement Industry - Since Cement industry is another
consumer of refractories, all the challenges for the cement industry
are shared by the refractories as well.
The Road Ahead: - With the growth of the factors mentioned below,
refractory industry is poised for a better future.
National Economic Growth – The overall economic growth of the
country has been dismal this year. However, there is a huge potential of
growth due to the fiscal and monetary reforms being employed. There
are concerted efforts being taken to revive the economy, which have
started showing some signs. Particularly for the refractory sector, the
dismal performance of the mining sector acted as an impediment to the
demand due to low production of raw materials. This translated to a low
production and hence infrastructural development. With due actions
being taken, there is huge scope of increase in demand going forward.
Steel Industry Upsurge: Going forward, the refractory market is set
up for a global turnaround due to spurt in demand for steel in lieu of
more demand for infrastructure as a response to urbanization. As
per a NASDAQ study, the overall scenario is expected to improve in
FY14. World steel demand is expected to increase by 3.3% to 1,523
MnT driven by a further pickup in global steel demand with the
developed economies increasingly contributing to growth. Also, it is
believed that most of the exports to the World would go from Asian
countries including India and China due to low cost manufacturing.
In India, the situation at hand is not dependent only on urban
growth. The rural sector, which has a low per capita consumption of
steel, at 12 kgs, shows a huge potential going forward. The overall
Indian average per capita consumption is 59 kgs. Thus, even if
urbanization is restricted, India is open for a steel demand from its
rural sector. This is a positive sign for the refractory manufacturers
in India as the Government and private sector of the country are
significantly investing into infrastructure and other allied industries,
which require steel as a basic input.
Global market penetration: Indian refractory industry has
established technology of the products, therefore, ample
opportunity lies for export, particularly those refractories which are
manufactured by domestic raw materials.
Low cost manufacturing: With the advantage of low cost
manufacturing, India is bestowed with a huge potential from
industries like copper (smelting), aluminum, zinc and production of
ceramic wares and glass. These industries also use refractories in
the furnaces.
OCL India Ltd. – A reviewWith a strong presence across the four states – Odisha, West
Bengal, Bihar and Jharkhand-- OCL India today is one of the oldest
names in the industry. It is engaged in the manufacture of cement
and refractories.
OCL India has cemented the foundation for many famous
monuments and other significant sites in India since its inception-
the Jagannath Temple, Puri and TISCO/Jamshedpur Plant and Jindal
Steel and power plants at Angul, to name a few.
Operational Overview –Moving towards self-sufficiencyThe Company has had a considerably well-off year compared
to the industry. Operationally, OCL India made few significant
developments during the year, which include: -
Completion of West Bengal Cement plant 6 months ahead of time
– OCL has added an additional capacity to its kitty by bringing in
an additional plant at Midnapur, West Bengal. This brings the total
capacity of OCL to 6.7 million TPA from 5.35 million TPA earlier. The
plant has already started functioning.
24
OCL INDIA LIMITED ANNUAL REPORT 2013-14
Lanji Berna mines issue resolution restoring raw materials
security- The Company also restored itself a security for a longer
period ahead in time by acquiring license for its limestone mines
at Lanji Berna. The Company had to temporarily shut down
two kilns at Rajgangpur as it had already exhausted the limit of
limestone production at Lanji Berna limestone and Dolomite mines
to the extent of 1.7 million TPA during 2012-13. Now with the
issue resolved with a renewed license, there is a lot of positivity
surrounding OCL’s smooth functioning in the area.
Captive power plants in operation in full swing – The Company has
also got its two captive power plants of 27 MW each functioning
smoothly from this year. With both the plants now stabilized, the
Company is now self-sufficient in terms of its power needs.
More human resource addition in lieu of expansion – With the
additional plant in West Bengal, there has been more human
resource (~117) brought in to support the operations.
RAMCO installation in the refractory division - The installation
of RAMCO will help bring about a more efficient and smooth run
for the Company overall through efficient data management in
refractory division.
Financial Overview – Self-sufficiency through cost optimizationOCL India has implied a continuous focus on the four markets
it operates in this year. There has been an aggressive focus to
penetrate even deeper into these markets.
There have been several moves made towards self-sufficiency
during the year, which have added to the costs of the Company but
are seen as necessary investments into the future.
• Cost reduction measures through commencement of captive
power units and strong prices in the eastern region promises
strong outlook for the Company. The Company has actually
reduced its power and fuel expenses in the year by 10.33 % to
`284.44 crores from `317.22 crores last year.
• The Company has put an aggressive focus on marketing and
brand improvement through concerted efforts.
• Significant reduction in finance cost by 11.63% due to measures
like interest cost rationalization.
Segmental Overview - The two segments of the Company have been
contributing consistently to the growth of the Company in eastern
India. Out of the two divisions, Cement division of the Company
contributes ~80-83% of its revenues every year. The ‘Konark’ brand
of the Company is a leading brand in Odisha with 51% sales and is
gaining ground in other markets of OCL.
The refractory division, in spite of being of a fragmented nature, is
building a strong repute of its own with each passing day. Globally,
OCL India is one of the very few producers of Coke Oven Silica bricks
apart from other refractory products.
Cement divisionThe cement division of the Company has been performing well over
the years and the Company has been putting in conscious efforts to
retain its strong position in East India.
Cement - Operational Highlights
Completion of the new plant: The Medinipur (West Bengal) plant
was completed 6 months ahead of time. It has added 1.35 MnT to
add to Company’s existing cement manufacturing capacity of 5.35
MnT through existing plants in Rajgangpur and Kapilas.
Raw material security: With the resumption of work at the Lanji
Berna mines, the Company has assured itself raw material security.
Power self-sufficiency: Both the captive power plants of the
Company are up and running, which provides self-sufficiency to
the Company by catering to the need of the cement division.
Cement- Financial Highlights
Net Sales: During the third quarter, Phailin spelt disaster all over the
eastern and southern parts of India. To this effect, the revenue grew
by only 2 % from INR 1503 crores to 1530 crores in 2013-14.
OCL INDIA REVENUE SEGMENTATION
CEMENT 82% REFRACTORY 18%
25
Corporate Overview Management Reports Financial Statements
EBITDA: There was a fall in EBITDA of the Company at the end of
year by 26%. It fell to `309 crores during the year compared to
`419 crores in 2012-13. With the overall Infrastructure, real estate
and other industries also facing the brunt of excessively wet and
moist conditions in the affected regions, OCL fared no different with
its performance in the cement division.
Capital Employed: the employed capital pertaining to the cement
division went up by 3% to reach `1453 crores during the year
compared to `1410 crores in 2012-13 which pertains to added
capacity.
Risk ManagementBeing a high up part of the cement industry, the Company is also
in rendezvous with the major risks basking on the players in the
country. However, understanding the volatile nature of the business,
the Company is prudently involved in mitigating the risks ahead.
Natural risks – Calamities like Phailin or an excessive monsoon
takes away the opportunity of a good business in a year. Since,
the Company is majorly present in east India, it is more prone to
such disturbances and the interdependence on industries like
infrastructure and construction adds to its woes of doing business
steadily. The Company is looking for penetrating deeper into these
markets continuously deriving business from non-affected areas in
case of excessive monsoons in the coastal areas of eastern India.
During the year, the dealers and sub-dealers increased by around
8% across markets.
Geographical concentration risk - Due to being concentrated mainly
in Eastern India, the Company faces a strong risk especially from
South Indian manufacturers. Since, OCL has a cost advantage over
other states from the South due to high transport costs involved,
this risk is not that gross for the Company. The proximity of the
markets to the plants takes care of this risk for OCL.
Interdependence of industries – Infrastructure, real estate and
retail; all the three sectors went through trying times during the
fiscal due to various factors like slow down in the economy and
natural calamities as mentioned above in the cement sector. The
Company is trying as hard as possible to regain its lost opportunities
with great vigor. The Company is focusing on its existing markets
through marketing and selling expenses and distribution network
enhancements.
Raw material risks – The rise in cost of basic inputs and raw
materials poised a risk for the Company in previous years. It was
dependent on external sources for its requirement. But this year,
OCL has mitigated its risk of raw material and power costs by
attaining self-sufficiency.
• Raw material costs – The Company is moving on a rapid pace
to attain self-reliance pertaining to raw material. This year, the
Company regained its source of raw material – Lanji Berna mines--
back available at its disposal with all compliances and licenses.
• Power & fuel expenses – Commencement of the two Captive
power plants in full flow this year has made the Company self-
reliant to a great extent.
Foreign exchange fluctuation risks - The devaluation of Rupee
against Dollar poses a threat to the business. The raw materials
being necessary requisites then lead to additional costs to the
Company. To take care of this risk, the Company makes transactions
through forward cover and PCFC.
Refractory DivisionThis division of the Company boasts of a distinct international
26
OCL INDIA LIMITED ANNUAL REPORT 2013-14
presence in terms of sales. It spans through five continents with
strong presence amongst its global peers. The Company also boasts
of a state-of-the-art R&D facility, which is continuously engaged into
adapting to latest technologies and improving upon the existing
practices. The strong hold of 92 patents is itself a proof of the
consistent performance over the years.
Operational HighlightsOCL India has achieved a self-attained goal of being more resource
efficient through the practice of bringing in the most cost-effective
strategies.
Repeated orders: This year, the Company enjoyed yet another
stream of repeated orders from clients from steel, glass and copper
industry segments domestically and globally. The installed capacity
of 0.106 million tonnes per annum justifies its existence well for the
Company.
OCL China Ltd.: OCL China Ltd has achieved 100 % of the capacity
in Magnesia Carbon and 28 % in Basic Burnt. Slump in glass badly
affected the burnt brick facilities.
Raw material: The Company owns quartzite mines and is exploring
various possibilities of mining different other raw materials as well
as manufacturing of synthetic raw material for use in refractory
industries. This will help us in having a sustenance business plan
for future.
New technology & products: The Company has developed many
new products & processes and has filed patents for 2 of them.
The Company is also working on documentation to enter into
Technology Licensing Agreement with Japanese Company, which is
leader in some special products in Japan.
Patents Filed – During the year, OCL filed the patents for the
following two products:-
• Novel Nozzles for continuous casting of steel with inside spiral
design
• Cement Kiln burner tip refractory block and mode of fixing
thereof
Continued Focus on Export Market: The efforts to export the
refractory products continued in this year also and it was possible to
retain the Middle East, Scandinavian, Italian & Turkish market even
after severe pressure from domestic as well as Chinese refractory
manufacturers. We could add new business in neighbouring
countries of Bangladesh and Russia this year.
Refractory – Financial Performance
Net Sales: Refractory Segment witnessed a growth of 4% from
`305 crores in FY13 to `318 crores in FY14. However, realizations
have shown a fall of about 7 % reaching `39,733 per tonne in FY14
compared to `42,622 per tonne in FY13 due to slowdown in the
economy.
Exports: OCL India retained its exports market.
EBITDA: There was a decline of 22 % in EBITDA from `23 crores in
FY13 to `18 crores in FY14.
Risk Mitigation – With a global placement, OCL India also faces
certain risks pertaining to its refractory division. These risks
influence the positioning of the Company amongst its peers and its
strategies going forward.
Risk of slow economic growth - Slowdown in economic growth
will lead to reduced consumption in consuming industries. It is,
therefore, necessary to increase the product base and customer
base. In order to achieve this, the Company has been investing in
R&D to develop new products, new processes of manufacturing of
the products, refractory management technique at customer end.
In addition to this, the Company has been exploring new export
markets, especially in glass and copper manufacturing segment.
Steel industry demand risks – The Company has been able to offset
the fall in demand of its products through an increased penetration
into the market. During the year, the figures of refractory turnover
have given an encouraging preview of retention of sales with a 4%
raise over last year. Through increased efforts into refractory sales
in India and overseas with competitive pricing, the Company is
steadily moving ahead, with more demand going forward.
Competitive risks – The Company has followed a stringent strategy
of staying in competition with total focus on marketing and branding
for its refractory division as well. It also works on improving the
quality of its products, making new products and making efforts to
reach out to non-steel industries like cement and petrochemicals.
Raw material risks - Other than quartzite, the Company buys
almost all other raw materials. The bulk of other raw materials
have been coming from China in the past. The Company has now,
through its R&D, has also made use of non-Chinese raw materials
27
Corporate Overview Management Reports Financial Statements
in some of the products thereby is in a position to keep checks
& balances in increase in raw material prices. The Company has
been continuously making endeavors to own mines for natural raw
materials and manufacturing synthetic raw materials. The Company
has been working towards securing long-term supply contract for
some of the raw materials.
Foreign exchange risk: The Company normally quotes in US$ for
export supplies. However, for Japan the currency of business is
YEN instead of US$. OCL Global business with OCL-China is in RMB.
Foreign exchange risks are mitigated through forward covers.
outlookThe overall outlook for OCL is quite positive and there is a lot
of scope in both its segments, going forward. While the world
economy is now recovering well out of the Global turmoil, we can
expect the business to go an extra mile in the coming times due to
anticipated demand increase in infrastructure, residential and retail
sectors apart from other constructions.
Both cement and Refractory being highly specialized industries
can be expected to have better performance through structured
competitive advantages and technologies with the existing
capacities at hand with OCL India.
Research and Development (R&D)OCL today has an in-house R&D Centre with state-of-the-art
facilities, technologies and equipment. Besides the R&D Centre,
OCL has set up an independent R&D institution – “Dalmia
Institute of Scientific & Industrial Research”. During FY14, OCL
continued its focus on R&D in both its business divisions and
has been able to offset the saddening effects of the economic
turnaround through better products and continuing demand.
It is more than encouraging to see the growth of demand at
12% for cement in comparison to the market demand of 8%.
The Company is in process of utilizing waste heat generated for
power generation. Alternate Fuels were put to use for the first
time to diversify fuel mix.
Regarding the Refractories, with aggressive thrust on the exports of
special Refractories like Continuous casting, Slide plates & Purging
Refractories for the Steel Sector, Direct bonded Mag-Chrome bricks
for the Copper and Fireclay & High Alumina bricks for the Aluminum
Industries; it enjoys clientele of reputed overseas customers. Focus
on research has lead to an environment of innovation of OCL
Refractories right from its inception. The Company puts high focus
on innovation. Employee encouragement to innovate has been
strengthened by showcasing selected innovation.
Launching of new products in refractory e.g. Spiral SEN, Special
High Alumina Cement, Mag Spinel refractories for steel industries
are example of this year’s commercial success. R&D done
by its technology team focuses on process control, product
improvement, new material application, product design and
product costs. Major R&D included this year are development of
Mono Block Stopper for CST Casters, Carbon Free Bore of Ladle
Shroud, Alumina Chrome Zircon for Glass, Flower Pot design
of SEN, Flip Design Slide Plate, Fused Silica Bricks, etc. These
products will open up new markets in addition to retaining the
existing business. Going forward, the focus is on development of
bricks in Cement Rotary Kiln, Hybrid Fused Silica Refractories for
Coke Oven Applications, Special Refractories to be used as Inserts,
Special Refractories for CST Caster, high performance refractories
for stainless steel making etc.
Human Resource Development & Industrial Relations: With a large and trained pool of resources at its disposal, OCL
India has been continuously investing in its human capital to retain
the present talent pool with it for long. This year, the Company
has enriched its existing human resource in the last nine months
of the year to add to the increasing capacity of plants due to the
commencement of the West Bengal plant. The management of
OCL engages with the workers at the mines talking to them about
safety quite often. The newsletter of the Company – Darpan,
is circulated across offices. It makes the employees feel part of
the system. It includes their personal happy moments like Durga
Puja celebrations at the office, marriages, child birth etc. Apart
from this, milestones like joining, completion of 25 years etc., are
also covered in the newsletter. The Company is also encouraging
internal job postings to provide a growth path to the talented
employees. A regular review of the employee benefit policies is
also done from time-to-time to ensure improvements and benefits
accrued to the deserving employees.
Awards and Recognitions: The Company has been receiving
recognition for its work through various initiatives and programs. A
few of them are listed here under:
28
OCL INDIA LIMITED ANNUAL REPORT 2013-14
Lanji Berna Limestone and Dolomite mines bagged 4 prizes in the
51st Annual Mines Safety Week celebration, 2013, for the following
categories:
• General Working (1st Prize)
• Publicity and Propaganda (1st Prize)
• Explosive Handling (1st Prize)
• Overall Performance (2nd Prize)
The Cement Division bagged the third position in the ‘Environment
Excellence Award, 2013’ organized by India Chamber of Commerce
for focus.
Quality circle ”VIDYUT” from ELECTRICAL DEPT Quality circle
“BASUNDHARA’ form CONCAST PLANT participated in ICQCC-2013
held at TAIPEI (TAIWAN) from 22nd -25th Oct’2013 & bagged the
highest category “ExCELLANCE AWARD”
Quality Circles “ LAKSHYA” & “NIRJHARINI” both from CONCAST
PLANT and Quality circle ”VIDYUT” from ELECTRICAL DEPT from
our Refractory division has participated in 21st CCQC - 2013 at
Rourkela from 20th - 21st September 2013 and all the teams
have bagged GOLD Award (highest category) in this Convention
QC _NIRMAN from CMS(Engg.) bagged the Silver award.
Quality Circles “LAKSHYA” & “NIRJHARINI” from CONCAST
PLANT & Quality circle ”VIDYUT” from ELECTRICAL DEPT from
our Refractory division has participated in 27th NCQC- 2013
conducted by Durgapur Chapter at KOLKATA from 20th – 23th
December, 2013 and all the teams have bagged PAR ExECELLENCE
Award(highest category) in this Convention.
Quality circle TEJAS from Kilns & GPP has participated in NALCO
convention at Bhubaneswar & bagged the Meritorious Performance
Award during April’ 2013.
Customer Appreciation – Excerpts from a letter from one of the
major steel makers dated 26-Feb-14, “Overall we have observed
improvement in ladle refractory performance provided by OCL.
We have observed consistent improvement in the quality of bricks
supplied by OCL. We thank for the support and cooperation
extended to us by team OCL to improve the steel ladle life. We
expect the same assistance in future too.”
Corporate Social ResponsibilityOCL India has been actively performing its social duties through
services into various sectors like health, education, water,
community welfare, games and sports etc., apart from the
environmental protection. In the year, the Company played its part
by helping the victims of Phailin and resultant floods in Odisha.
The Company contributed Rs 51 Lakhs to the same by presenting
it to the Chief Minister of the State. This donation included one
day salary/wages of the OCL employees voluntarily contributed
by them to the cause. As part of the relief work, the periphery
villages, which were most affected, were provided with polythene
sheets and other relief materials. The Company also regularly
organizes Counseling sessions for pregnant and lactating mothers
at their door step through an agency “SEWAK”, which is into child
healthcare. Free school buses are provided to children of Shramik
High School, Bihaband, to reduce drop-out rates. A similar step is
being taken by initiating a Remedial education centre for students
of Standard Ix and x in Government schools around Lanji Berna.
Further, the Company also provides self-employment opportunities
to women of nearby areas by presenting their crafts in exhibitions
during Durga Puja etc.
internal controlsYour Company has appropriate internal control system for business
processes, with regard to efficiency of operations, financial
reporting, compliance with applicable laws and regulations etc. The
roles and responsibilities of all employees and functions have been
clearly laid out. All operations are under strict adherence of the
regulations followed. The Internal Auditor of the Company conducts
regular internal audit and ensures that responsibilities are executed
effectively. The Audit Committee of the Board of Directors conducts
periodic reviews to adjudge the adequacy and effectiveness of
internal control systems and directs improvements whenever the
need arises.
Forward Looking StatementThis Management and Discussion Analysis statement contains,
certain forward - looking statements and information, which
are based on some assumptions, estimates, objectives
and expectations concerning future operations and future
performance. The readers are hereby cautioned and advised that
these forward-looking statements are subject to numerous risks
and uncertainties that are difficult to foresee and actual outcomes
might differ significantly.
29
Corporate Overview Management Reports Financial Statements
Annexure-IITo the Directors’ Report
STATEMENT CONTAINING PARTICULARS PURSUANT TO COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988.
A. CONSERVATION OF ENERGY
CEMENT:
a) Energy Conservation measures implemented
1. Reductioninidlerunningofequipments.
2. Installationofenergyefficientpumpsatmines.
3. Compressedairoptimization.
4. Continuedmonitoringandarrestingofleakagesinducts.
5. Reduction in specific power consumption through
productivity improvement in pyro processing and
cement grinding.
6. InstallationofenergyefficientFluorescentLamps.
7. Replacementoffewidentifiedagedmotorswithenergy
efficientmotors.
8. Cement Vertical RollerMills internalmodification(Dam
ringheightoptimization,S-rollerremoval)
9. DamperremovalfromCVRM-1Millfan
10. ReductioninpressuredropacrossCVRMbagfilters
11. NewGRRinstallationinCVRM-3bagfilterfan
12. Cooling tower pump start stop interlock with water
temperature
13. SintercasttireandtablelinerinstallationinCVRM-3
14. Usageofpetcokeinbothline-1andline-2kilns
15. Reductionindegreeofcalcinationsinline-1andline-2kilns
16. Reduction in Preheater tower temp by raw mix
optimization
17. ImprovementinairblastercycleoperationinPreheater
18. Additionofmorethan31%flyashinPPC
19. OPCgrindingwithoutheat.
20. Reduction in auxiliary power consumption of CPP by
installingVFDinboilerfeedpump.
21. IncreasedUsageofalternatefueltopartlyreplacecoal
asanalternatefuelforkilnandCPP.
22. Study of kiln operations through NCCBM and
implementationofcorrectiveactions.
23. Energy audit through CII and implementation of
correctiveactions.
24. OptimizationofLine2processfans.
25. Reductionofpressuredropacrossdamperinidentified
BagFilterfansinpackingplantarea.
26. OptimizationofoperationofcompressorsatLine-2.
27. Reductionofpre-heatertowertemperaturebyprocess
optimization.
28. Installationof2.5MWsolarpowerplant.
b) Additional investments and proposals, if any, being
implemented for reduction of consumption of energy:
1. Watersprayintopcycloneinline2toreducePHFanpower.
2. Continuedutilizationofwastehot gases fromkiln and
coolerfordryingofslag.
3. Continued daily monitoring of section-wise energy
consumption.
4. Continuedmonitoringoffalseairincircuitandarrestingit.
5. Auditofcompressedairsystem.
6. Usageofcarbonpowderfromasalternatefuelforboth
kilns
30
OCLINDIALIMITED ANNUALREPORT2013-14
7. ImplementationofCFDstudyreportinLine-1andLine-2
8. InstallationofWHRsystematline-2(underproposal)
9. Capacityenhancementofclinkertransportbeltconveyor
forCVRM-3fromLine-2
10. CapacityenhancementofSlagtransportbeltforCVRM-2
11. GRRinstallationforVRM-1cyclonefan
12. Studyof Line-2 toenhancecapacity from4000TPD to
5000TPD&firmupproposal.
13. Installation of new high flame momentum burner in
Line-1&Line-2.
14. CVRMclassifierchangewithhighefficiencyatKCW.
15. DCSsystemforpackingplantoperations.
16. VFDforwastegasfan.
c) Impact of the measures at (a) and (b) above for reduction of
energy consumption and consequent impact on the cost of
production of goods:
1. Reduction in consumptionof thermal/electrical energy
per ton of cement produced. Saving of 16 KCal/Kg of
clinkerinSp.HeatconsumptioninLine-1kilnandSaving
of0.56kWh/tofclinkerinLine-2
2. EfficientUtilizationofwasteheatfordryingthemoistureof
slaghasresultedinreductionintheconsumptionofcoal.
3. Creating extensive awareness on need of energy
conservation.
4. Reduction in Green House gases there by helping to
controlGlobalwarming.
5. AsteptowardsPATimplementationaslaiddownBEE.
6. Conservationofnaturalresources.
d) Total energy consumption and consumption per unit of
production as per ‘Form A’ is given below.
ENVIRONMENTAL IMPROVEMENT:
a) Environmental improvement measures taken:
1. StacksasperSPCBguidelines.
2. Usageof fly ash&bed ash (wasteproduct of thermal
powerplant).
3. Usageof7%nonmagnetic char (wasteof sponge iron
plants)asalternativefuel.
4. New design water spray systems at CCBC, limestone
stockpileinLine-1andCoalhandlingplantatCPP
5. StartedusageofPetCoke(refinerywaste)asfuel.
6. Watersprayssystemsattrucktippler.
7. Plantationof10000trees/year.
b) Additional investments and proposals, if any, being
implemented for Environmental improvement:
1. Continued usage of fly ash (waste product of thermal
powerplant)toproducePPC.
2. ConversionofKiln&VRMESPofLine-1intohybridbagfilter.
3. Continuedusageofalternatewasterawmateriallikebed
ashofCPP.
4. Dust suppressionhopper for clinker loading toKCW in
Line-1.
5. Raingunwaterspraysystemsatcoalstackerreclaimer.
6. Newdesigndust suppression system in clinker loading
system.
7. IncreaseusageofPetCokefrom5%to30%.
c) Impact of the measures for environmental improvement:
1 With various water conservation measures, the drawl
andconsumptionofsourcewaterforfactoryoperation
andcolonyrequirementhasreducedbyalmost30%over
thefouryearperiodfrom2009-10to2012-13.
2 Environment control as per CPCB norms – bagged
CertificateofAppreciationfromCII
c) Total energy consumption and consumption per unit of
production as per ‘Form A’ is given below.
REFRACTORY:
a) Energy Conservation measures taken:
1 Utilization of hot air from chamber kiln to dryer for
dryinggreenCCproducts.
31
Corporate Overview Management Reports Financial Statements
2 Utilizationoffluegas frombell kiln todryer fordrying
finishCCproducts.
3 Increaseofpayloadabout25%ofslideplateinbellkiln
bymodifyingloadingdesign
4 AllthepanelAirconditionerofCNCmachineshavebeen
interlocked with the operating control of machines to
reduceenergyconsumptionduetoidlerunning.
5 Interlockofdustfiltermotorswithcircuitwasprovided
tostopidlerunningofdustfilters.
b) Additional investment and proposals
1 Secondcrushing&grindingcircuitforCCgreensection
toreducewastageofmaterialandincreaseefficiency.
2 ToprovideVFDinChamberkilnI.D.fantocontrolenergy
consumptiontosuitthedraftrequirementofthekiln.
3 To modify electrical control of drying oven of Precast
planttoreduceenergyconsumption.
4 ToprovidegaspressureregulatorsinallChamberKilnsto
regulatetheconsumptionofgas.
5 Installation of automeasurement & display of control
parameterinchamberkilnNo.5.
6 FluegasutilizationfrombellkilnindryersinSlidePlate
Plant.
7 Useofsilicabricksforliningofchamberkilninsteadof
fireclaybrickstoincreasethelifeofchambers.
c) Impact of the measures at (a) & (b) above for reduction
of energy consumption & consequent impact on cost of
production of grades:
1 Reduction in fuel consumption and also cost for silica,
concastandbasic/doloburntproducts.
2 Improvement in silica and concast output.
3 Reduction in carbon emission to atmosphere thereby
achieving environmental improvement.
4 Reductioninpowerconsumption.
d) Total energy consumption and consumption per unit of
production as per ‘Form A’ is given below.
32
OCLINDIALIMITED ANNUALREPORT2013-14
FORM-A
(PARTICULARS OF TOTAL ENERGY CONSUMPTION AND ENERGY CONSUMPTION PER UNIT OF PRODUCTION)
2013-14 2012-13CEMENT REFRACTORY CEMENT REFRACTORY
A) POWER AND FUEL CONSUMPTION 1 Electricity a) Purchased Units(inlackwh) 484.6 121.44 1394.31 136.41 TotalAmount(`inlacs) 3718.05 793.98 8250.31 835.88 Rate/perunit(`) 7.67 6.54 5.92 6.13b) Own generation
i) Through Diesel Generator Units(inlacskwh) 19.92 1.37 9.08 0.57UnitsperltrofFueloil(inkwh) 2.65 2.64 2.68 2.68Cost/perunit(`) 20.05 20.02 20.18 20.23
ii) Through Steam turbine / Generator Units(inlacskwh) 1974.34 - 1239.22 -UnitsperltrofFueloil/gas(inkwh) - - - -Cost/perunit(`) 6.06 - 6.36 -
iii) Through Solar Units(inlacskwh) 0.16 - - -UnitsperltrofFueloil/gas(inkwh) - - - -Cost/perunit(`) 5.67 - - -
2 Coal (Grade B to F Wash Coal in Kiln and CVRM, Grade A,
B, E-Refractory Kilns)
Quantity(inlactonnes) 3.69 0.28 3.78 0.34TotalCost(` inlacs) 14417.97 1401.53 15040.82 1808.19AverageRate(` /MT) 3905.87 5021.36 3981.99 5269.31
2A Char Quantity(inlactonnes) 0.04 - 0.23 - TotalCost(`inlacs) - - 0.61 - AverageRate(`/MT) 0.01 - 2.72 -
3 Furnance Oil Quantity(K.ltr) 2408.17 1,342.54 1486.31 1655.01 Totalamount(`inlacs) 960.92 569.53 563.22 681.54 AverageRate(`/k.ltr) 39902.33 42422.02 37893.98 41180.744 Others / Internal Genaration a) Light Diesel oil for P.G Set Quantity(K.ltr) - - - - Totalcost(` inlacs) - - - - Rate/Unit(`/k.ltr) - - - -b) Light Diesel oil for KHD Kiln
Quantity(`K.ltr) - - - - Totalcost(`inlacs) - - - - Rate/Unit(`/k.ltr) - - - -
33
Corporate Overview Management Reports Financial Statements
2013-14 2012-13CEMENT REFRACTORY CEMENT REFRACTORY
c) Light Diesel oil for CVRM Quantity(K.ltr) - - - - Totalcost(` inlacs) - - - - Rate/Unit(`/k.ltr) - - - -d) HSD Oil for DG Set Quantity(K.ltr) 1.56 - 2.57 - TotalCost(`inlacs) 0.86 - 0.74 - Rate/Unit(`/k.ltr) 55223.45 - 28829.11 -e) High Speed Diesel oil etc for Payloaders & Tippers at
Factory
Quantity(K.ltr) 325.45 - 217.988 - TotalCost(` inlacs) 183.49 - 94.51 - Rate/Unit(`/k.ltr) 56379.70 - 43356.66 -f) HSD Oil for Disel Locos Quantity(K.ltr) 149.42 - 145.42 - TotalCost(` inlacs) 84.69 - 63.12 - Rate/Unit(`/k.ltr) 56680.26 - 43408.57 -g) Dynamics F for Kilns Quantity(K.ltr) - 0.5 - 0.96 TotalCost(` inlacs) - 1.27 - 2.44 Rate/Unit(`/k.ltr) - 253174.00 - 254415.63
B CONSUMPTION PER UNIT OF PRODUCTION (PER MT)2013-14 2012-13
a) Cement Electricity(KWH) 73.83 73.72 FurnanceOil(litres) 0.49 0.317 CoalforKilnandCVRM(gradesBtoF-WashCoal)Kgs 111.10 100 Char(kgs) 1.25 6 Others-L.DOil(litres) ForKHDKilnandCVRM - - HSDOilforpayloadersandtippers(ltrs) 0.10 0.063 HSDOilforCVRM - -b) Refractory Electricity(KWH) 294 301 FurnanceOil(k.litres) - - ForOilFiredBricks 0.242 0.342 ForMixedFireBricks 0.065 Coal(M.T)forRefractoryKilns(gradesA,BandE) - - ForGasFirebricks(MT) 0.887 1.105 ForMixedFireBricks(MT) 0.488 0.275 DynamicsF - - ForOilfiredbricks(k.ltrs) 0.00011 0.00019
34
OCLINDIALIMITED ANNUALREPORT2013-14
REASONS FOR VARIATION IN THE CONSUMPTION OF POWER AND FUEL FROM STANDARDS OR PREVIOUS YEAR:
CEMENT:
1) InFinancialYear2014therehasbeenimprovementinspecific
heatandpowerconsumptionofbothkilns.
2) Rawmixoptimization
3) Reductionindegreeofcalcinations
4) Reductioninresidueofrawmeal
5) Someoftheenergyandfuelsavingproposalshavebeen:
i. Kilninletsealreplacement.
ii. ArrestoffalseairinrawmillcircuitandPreheatercircuit
iii. Coalmixoptimization
iv. VFDinstallationatvariouscircuits.
v. OptimizationofCVRMandinternalmodifications
vi. PPCintermixinginsteadofintergrinding.
vii. MaximizingkilnandcoolerhotairutilizationinCVRMby
arrestingfalseairinthecircuit.
viii. Line1kilnoutletsealmodification
REFRACTORY:
1) FURNACEOIL:-Furnaceoilconsumption in13-14 is lessthan
12-13becauseof running theBTK at its optimum speedby
clubbingtemperaturescheduleproductionvolumeindifferent
batches.
2) COAL:-Coalconsumptionperunitproductionin13-14is less
than12-13dueto
a) Payloadforsilicabricks/benchinchamberkilnhasbeen
increased by maintaining solid loading pattern and
removingsilicapartitionwallsandbenchingmaterialsin
twokilns.
b) TwonosofHotairgeneratorsrunningbyproducergas
for drying concast product were stopped after using
wasteheatfrombellkilnsandFBChamberKiln.
3) The electricity consumption KWH/MThas comedown from
301to294ashotairfromchamberkilntodryerwasutilisedfor
dryinggreenCCproducts.Fluegasfrombellkilntodryerwas
utilizedfordryingfinishCCproducts.Further,allthepanelAir
conditionersofCNCmachineshavebeeninterlockedwiththe
operatingcontrolofmachinestoreduceenergyconsumption
duetoidlerunningofairconditioners.
B. TECHNOLOGY ABSORBTION:
Effortsmadeintechnologyabsorption
35
Corporate Overview Management Reports Financial Statements
FORM B
FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO ABSORPTION
Research & Development (R&D)
1. Specific Areas in Which R & D carried out by the Company
CEMENT:
1 InvestigationstoupgradethequalityofPhosphoGypsumfrom
ParadeepandCorramandal Fertilizerplants forusageas set
controller in cement.
2 Usageofplantwaste (bedashandcinder)andmineswaste
(rejectstone)inmanufacturingofcement.
3 Identificationandusageofvariousalternatefuelsavailablein
surrounding areas.
4 ReductionofwaterintakeforefficientgrindinginCVRM.
REFRACTORY:
1 Developmentofmonoblockstopper forhigher life(26hrs)for
CSPcaster
2 Developmentofcarbonfreeboreconfigurationladleshroud.
3 Aluminachromezirconiachimneyblockforglassregenerator.
4 DevelopmentofflowerportSEN
5 Developmentofthermocoupleprotectingtubesfortundish
6 Developmentofthermo-coatreplacingceramicfibreforSEN
7 DevelopmentofMagnesiaspinelCarbonbricksforsteelladle
8 Developmentofsegmentedporousplug
9 DevelopmentofHybridfusedSilicabricks
2. Benefits derived as a result of the above R&D
CEMENT:
1 Optimized addition of Phospho Gypsum and corresponding
reductioninmineralgypsumthusreducingitscost.
2 Conservationofnaturalresources.
3 Usageof industrialwasteseffectivelyas fuelandalternative
raw material thereby reducing fuel cost and improving
sustainability.
REFRACTORY:
1 Tomeethighersequenceasperpresentdemand
2 Forcastingofultralowcarbonsteel
3 Towithstandlesschemical&carryoverattackintopcourseof
glass regenerator where temp.is high
4 Tocontrol&reducenon-metallicinclusioninsteel
5 Suitableforcontinuoustemp.measuringdevice
6 Environmentfriendly.
7 Togethigherlife
8 Topreventchockingofplugs
3. Future Plan of Action
CEMENT:
1. WasteheatrecoverybasedPowerplants.
REFRACTORY:
1. DevelopmentoflowcostDolomitebricksforAOD/Ladle.
2. Development of coating friendly Mag-Al spinel bricks for
cementrotarykiln.
3. DevelopmentofChromebricksforgassifiers.
4. Development of coating repellent erosion resistant Alumina
SiCbricksfortertiaryairductofcementkiln.
5. DevelopmentofZirconiainsertsforvariousapplicationinflow
controlrefractories.
6. Developmentofflipdesignslideplate
7. Fusionofdolomiteandmanufacturingofbrickstherewith.
36
OCLINDIALIMITED ANNUALREPORT2013-14
4. Expenditure on R&D
a) Capital `0.57Lacs
b) Recurring `293.22Lacs
c) Total `293.79Lacs
d) TotalR&Dexpenditureasa
Percentageoftotalturnover 0.15%
TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION
1. In case of imported technology (imported during the last 5
years), following information may be furnished:
a) Technologyimported No Technology hasbeenimportedinlast5years.
b) Yearofimport -c) Has technology been fully
absorbed-
d) Ifnotfullyabsorbed,areaswherethis has not takenplace, reasonsthereforeandfutureplanofaction
N.A.
C. FOREIGN EXCHANGE EARNINGS AND OUT-GO
Activities Relating To Exports; Initiatives Taken To Increase
Exports; Development of New Export Markets for Products
andServices;AndExportMarkets.
REFRACTORY:
SlowdownintheEuropeaneconomycontinuedduring2013-
14&Steel sector is themostaffected. EuropeanRefractory
companieshavebecomeaggressiveinnon-Europeanmarkets
and are offering very competitive prices even for superior
qualityproducts.
TheprojectsinGlassindustryallovertheworldweredeferred
or were not forthcoming due to slow down in the Glass
industry.
Chinese manufacturers who were earlier using traders for
marketing,havenowaggressivelystartedsellingbricksdirectly
to customers which has lead to price pressure.
Your company, however, was able to retain the traditional
marketsofMiddleEastandhasbeensuccessfulinintroducing
its special products to new customers and have been
successful in adding new products which have helped in
growthofexportsfromthepreviousyear.
YourcompanyhasfocusedexportofMagnesiaCarbonbricks
fromOCLGlobalLtdtoitscustomers.
TotalForeignExchangeused :`16633.73Lakhs
TotalForeignExchangeearned :`5458.53Lakhs
37
Corporate Overview Management Reports Financial Statements
Annexure-IIITo the Directors’ Report Corporate Governance Report
I. PHILOSOPHY ON CODE OF GOVERNANCE
The Company firmly believes in and continues to practice good corporate governance. Corporate governance seeks to raise the
standardsofcorporatemanagement,strengthenstheBoardsystems,significantlyincreaseitseffectivenessandultimatelyservethe
objectiveofmaximizingtheshareholdersvalue.ThephilosophyoftheCompanyisinconsonancewiththeacceptedprinciplesofgood
governance.
II. BOARD OF DIRECTORS
A) Composition of Board of Directors - The Company has a thoroughly professional Board with a majority of Non-Executive and
Independent Directors.
S.No.
Name of Directors and Directors Identification Number
Designation Category of Director
No. of shares held
No. of Board Meetings attended
No. of other Directorships
Total No. of Committees
Membership Chairmanship1. ShriPradipKumar
KhaitanDIN:00004821
Chairman Non-executiveandNon-Independent
Nil 4 14 4 0
2. Shri Gaurav DalmiaDIN:00009639
ExecutiveViceChairman and Managing Director
Promoter,ExecutiveandNon–Independent
Nil 4 6 3 1
3. Shri D. D. Atal DIN:00951540
WholeTimeDirector andChiefExecutiveOfficer
ExecutiveandNon–Independent
Nil 4 2 0 0
4. Shri D. N. DavarDIN:00002008
Director Non-executiveand Independent
1,500 4 13 5 5
5. ShriPuneetYaduDalmiaDIN:00022633
Director Promoter,Non-executiveand Non Independent
Nil 4 4 1 0
6. Dr. S. R. JainDIN:00364293
Director Non-executiveand Independent
Nil 4 2 3 1
7. Dr. R. C. VaishDIN:01068196
Director NonExecutiveand Independent
Nil 4 6 3 1
8. ShriV.P.SoodDIN:00092593
Director Non-executiveand Independent
25,700 4 0 1 0
38
OCLINDIALIMITED ANNUALREPORT2013-14
Notes:
a) FourBoardmeetingswereheldduringtheFinancialYear
2013-14onMay29,2013,August07,2013,October28,
2013,andFebruary10,2014.
b) Other Directorships include only the Directorships in
publiclimitedcompanies.
c) The chairmanship/membership of the committees
reportedaboveincludesthechairmanship/membership
ofthecommitteesoftheCompany.
d) TheAnnualGeneralMeetingwasheldonSeptember14,
2013andwasattendedbyShriD.D.Atal,WholeTime
DirectorandChiefExecutiveOfficerandShriD.N.Davar,
ChairmanoftheAuditCommittee.
e) TheNonExecutiveChairmanhasnotdesiredanofficeat
theCompany’sexpense.
B) Boardprocedure -Thetimegapbetweenanytwomeetings
of the Board of Directors is not more than four months.
The details about performance of the various units of the
Company, financial position, legal compliance, quarterly
results,sharetransferdetails,informationinAnnexureIAand
allotheraspectsoftheCompanywhicharerelevantforreview
oftheBoardofDirectorsarebeinggiveninastructuredformat
at each meeting. The said information complies with the
requirementsoftheCodeofCorporateGovernancewithregard
totheinformationtobeplacedbeforetheBoardofDirectors.
NoDirectorisaMemberinmorethantenCommitteesoracts
asChairmanofmorethanfiveCommitteesofthecompanies
inwhichheisaDirector.EveryDirectorinformstheCompany
aboutthepositionheoccupiesinCompanies/Committeesand
notifiesthechangesasandwhentheytakeplace.
A Committee of Directors decides the urgent business that
arisesinbetweentwoBoardmeetings.TheCommitteeconsists
ofShriD.N.Davar,ChairmanoftheCommitteeandDr.S.R.
Jain,ShriPuneetYaduDalmiaandDr.R.C.Vaish,membersof
theCommittee.ThereisnoCommitteeofDirectorsMeeting
heldduringthefinancialyear2013-14.
C) Inter–serelationship-TheDirectorsarenotrelatedinter–se.
III. AUDIT COMMITTEE
A) Termsofreference-Theroleandtermsofthereferenceofthe
AuditCommitteecovers theareasmentioned inClause49of
theListingAgreementandSection292AoftheCompaniesAct,
1956,besidesothertermsasmaybereferredbytheBoardof
Directors.TheAuditCommitteereviewstheManagementAudit
reports,InternalAuditreportsandActionTakenreportofthe
Managementthereupon,periodically.ItalsoreviewstheAnnual
AccountsandQuarterlyResultsoftheCompanybeforetheyare
placedbeforetheBoardofDirectors.TheAuditCommitteealso
meetstheStatutoryAuditorsandInternalAuditorsperiodically
anddiscussesthefindings,suggestionsandreviewsthemajor
accountingpoliciesfollowedbytheCompany.TheMinutesof
theAuditCommitteemeetingsarecirculatedtotheBoard.
TheAuditCommitteereviewstheauditedfinancialstatements
with reference to theDirector’s Responsibility Statement in
termsof clause (2AA)of section217of theCompaniesAct,
1956. Inaddition to theabove, theCommitteealso reviews
thefollowing:-
a) Management discussion and analysis of financial
conditionsandresultsofoperations.
b) Statement of significant related party transactions
submittedbytheManagement.
i. Astatementinsummaryformoftransactionswith
relatedpartiesintheordinarycourseofbusinessis
placedperiodicallybeforetheauditcommittee.
ii. Details of material individual transactions with
relatedparties,whicharenotinthenormalcourse
ofbusiness,areplacedbeforetheauditcommittee.
iii. Details of material individual transactions with
related parties or others, which are not on an
arm’s length basis, are placed before the Audit
Committee, together with Management’s
justificationforthesame.
c) Management letters/letters of internal control
weaknesses,ifany,issuedbythestatutoryauditors;
d) Internal audit reports relating to internal control
weaknesses;and
e) The appointment, removal and termsof remuneration
oftheInternalAuditoraresubjecttoreviewbytheAudit
Committee.
B) CompositionofAuditCommittee-TheAuditCommittee
comprises three Members Shri D. N. Davar as its
Chairman and Dr. S. R. Jain and Dr. R. C. Vaish, all of
whom are Independent Directors.
39
Corporate Overview Management Reports Financial Statements
C) Meetings and attendance - Themeetings of the Audit
CommitteeareusuallyheldbeforetheBoardMeetings
where the Financial Results of the Company are
considered.TheparticularsofAuditCommitteemeetings
heldduring theyear2013-2014andtheattendanceof
themembersareasfollows:
Date of Audit
Committee
meeting
Shri D. N.
Davar
Dr. S. R.
Jain
Dr. R. C.
Vaish
29.05.2013 Present Present Present
07.08.2013 Present Present Present
28.10.2013 Present Present Present
10.02.2014 Present Present Present
IV REMUNERATION OF DIRECTORS
TheremunerationofDirectorsisfixedbytheBoardofDirectors
subjecttoapprovaloftheshareholders.
TheRemunerationCommitteecomprises three Independent
Directors with Shri D. N. Davar as its Chairman and Dr. S. R. Jain
andDr.R.C.Vaishasitsmembers.
The particulars of Remuneration Committee meetings held
duringtheyear2013-2014andtheattendanceofthemembers
areasfollows:
Date of
Remuneration
Committee meeting
Shri D. N.
Davar
Dr. S. R.
Jain
Dr. R. C.
Vaish
07.08.2013 Present Present Present
10.02.2014 Present Present Present
TheSittingfeesof`20,000/-permeetingispaidtoNonWhole
Time Directors for attending each of the Board meetings,
Audit Committee meetings, Remuneration Committee and
Committee of Directors besides reimbursement of out of
pocketexpenses.
The NonWhole - Time Directors are also paid commission
within the ceiling of one percent of the yearly profits. The
Shareholders had, at the Annual General Meeting of the
CompanyheldonSeptember14,2013approvedpaymentof
commissiontoNonWholeTimeDirectorsnotexceeding1%of
netprofitsoftheCompanycomputedinthemannerprovided
undersection198(1)oftheCompaniesAct,1956.
The details of sitting fees and commission paid to the Non
Whole-TimeDirectorsduringtheyear2013-14areasunder:
S.
NO.
Name of Director Sitting
Fees
Commission Total
1. ShriPradipKumar
Khaitan
80,000 10,00,000 10,80,000
2. Shri D. N. Davar 2,40,000 7,85,000 10,25,000
3. Dr. S. R. Jain 2,50,000 6,45,000 8,95,000
4. ShriPuneetYadu
Dalmia
90,000 5,75,000 6,65,000
5. Dr. R. C. Vaish 2,00,000 5,75,000 7,75,000
6. ShriV.P.Sood 1,30,000 5,75,000 7,05,000
During the year, the Company has paid `30,68,619/- as
professional fees toM/sKhaitan&Co.,afirm inwhichShri
PradipKumarKhaitan,DirectoroftheCompany,isapartner.
Therewasnootherpecuniaryrelationship/transactionofthe
Non-ExecutiveDirectorsvisavistheCompany.
The terms of appointment and remuneration paid to Shri
Gaurav Dalmia, Executive Vice Chairman and Managing
Directoraregivenbelow:
Shri Gaurav Dalmia
a) Tenure :21stJuly2010to31stMarch2015
b) Remuneration :SalaryandAllowances
:`1,56,00,000/-
Valueofperquisites -`6,54,253/-
ContributiontoPFandother
Funds-`18,27,996/-
Commission:1,00,00,000/-
c) Other terms: The Agreement may be terminated
by either party by giving three months’ notice. If
the Agreement is terminated by the Company, the
Companyneedstopaythreemonthssalaryinlieuof
the notice.
40
OCLINDIALIMITED ANNUALREPORT2013-14
The terms of appointment and remuneration paid to
ShriD.D.Atal,WholeTimeDirectorandChiefExecutive
Officer,aregivenbelow:
Shri D. D. Atal
a) Tenure :1stApril2010to31stMarch2015
b) Remuneration :SalaryandAllowances
:`1,26,44,905/-
VariablePay(fortheFY2012-13):
`34,06,390/-
Valueofperquisites -`13,88,540/-
ContributiontoPFandother
Funds–`8,29,975/-
ShriD.D.Atalwillalsobepaidvariableportionofhispay
fortheyear2013-14intheyear2014-15asperpolicyof
theCompanyinthisregard.
c) Other terms: The Agreement may be terminated
by either party by giving three months’ notice. If
the Agreement is terminated by the Company, the
Companyneedstopaythreemonthssalaryinlieuof
the notice.
V STAKEHOLDERS RELATIONSHIP COMMITTEE
The Stakeholders relationship Committee monitors
expeditiousredressalofinvestors’grievances.TheCommittee
consistsofthreeDirectorswithDr.S.R.Jain,aNon-Executive
Director,asitsChairmanandShriV.P.SoodandShriPuneet
YaduDalmiaasitsmembers.
The particulars of Stakeholders relationship Committee
meetingsheldduringtheyear2013-2014andtheattendance
ofthemembersareasfollows:
Date of Stakeholders
relationship
Committee meeting
Dr. S. R.
Jain
Shri Puneet
Yadu
Dalmia
Shri V. P.
Sood
29.05.2013 Present Present Present
InvestorComplaintsreceived/settledduringtheyear:
S.
No.
Type of
Complaint
Complaints
received
Complaints
redressed
Complaints
pending 1. Transfer/
Transmission
ofShares.
1 1 0
2. Dividend 1 1 0
3. Forfeitureof
shares
0 0 0
4. Miscellaneous
(changeof
address,name
deletion/non
receiptof
AnnualReport,
etc.,)
3 3 0
TOTAL 5 5 0
TheCompanyhasdesignatedane-mailID“[email protected]”for
registeringthecomplaintsbyinvestors/shareholders.Thedetails
aredisplayedontheCompany’swebsitewww.oclindialtd.in.
Nameanddesignationofcomplianceofficer
Ms. Rachna Goria, General Manager (Legal) & Company
Secretary,istheComplianceOfficer.
VI GENERAL BODY MEETINGS
A) Location and time,where Annual GeneralMeetings held in
lastthreeyears–
AGM DATE &
TIME
LOCATION WHETHER SPECIAL
RESOLUTIONS WERE
PASSED 61th
AGM
27th
September
2011 at
4.30P.M.
Company’s
RestHouseat
Rajgangpur-
770 017
(Odisha)
NoSpecialResolution
was passed.
62nd
AGM
17th
September
2012 at
4.30P.M.
Company’s
RestHouseat
Rajgangpur-
770 017
(Odisha)
NoSpecialResolution
was passed.
41
Corporate Overview Management Reports Financial Statements
AGM DATE &
TIME
LOCATION WHETHER SPECIAL
RESOLUTIONS WERE
PASSED 63rd
AGM
14th
September
2013 at
4.30P.M.
Company’s
RestHouseat
Rajgangpur-
770 017
(Odisha)
Specialresolutionwas
passedu/s309(7)of
theCompaniesAct,
1956forrenewalof
shareholders decision
topaycommissionfor
afurtherperiodoffive
yearstoNon-WholeTime
Directors@1%ofthe
netyearlyprofitsofthe
company.
ThepreviousAnnualGeneralMeetingoftheCompanywasheld
on14thSeptember2013at4.30p.m.attheCompany’srest
houseat:Rajgangpur-770017,District:Sundargarh(Odisha).
In the absence of Chairman of the Board of Directors, the
meetingwaschairedbyShriD.D.Atal,WholeTimeDirector
andChiefExecutiveOfficeroftheCompany.ShriD.N.Davar,
ChairmanoftheAuditCommittee,alsoattendedtheAnnual
GeneralMeeting.
B) ResolutionspassedbyPostalBallot
Duringthefinancialyear2013-14,followingspecialresolutions
werepassedthroughPostalBallot,pursuanttoSection192A
of the Companies Act, 1956 read with Companies (Passing
ofResolutionbyPostalBallot)Rules,2011.ShriMohanRam
Goenka, Partner, MR & Associates, Practicing Company
Secretary, was appointed as ‘Scrutinizer’ to conduct and
reportthepostalballotresults.
Reference of
Sections
Purpose of the resolution Voting Pattern
Resolutionfor
amendmentof
objectclause
undersection
17ofthe
CompaniesAct,
1956
Tocarryonthebusinessof
developing,constructing,
establishing,commissioning,
settingup,operatingand
maintaining electric power
generatingstationsbased
onconventional/non-
conventionalresourcesand
alsotoofferconsultancy
forpowertransmission,
distributionandpower
marketingtoanycustomer”.
30 votes were
castinfavour
ofand1vote
was cast
against the
resolution.
Reference of
Sections
Purpose of the resolution Voting Pattern
Resolutionfor
Commencement
ofnewbusiness
undersection
149(2A)ofthe
CompaniesAct,
1956
For commencement
ofabovementioned
business.
30 votes were
castinfavour
ofand1vote
was cast
against the
resolution.
VII DISCLOSURES
A) TheCompanyduringtheyearhasnotenteredintotransactions
of material nature with its promoters, the Directors, their
relatives,subsidiarycompanies,etc.thatmayhavepotential
conflictofinterestwiththeCompany.Nopenalties,strictures
havebeenimposedontheCompanybythestockexchanges
orSEBIonanymattersrelatedtocapitalmarketsduringthe
last3years.
B) ParticularsofcontractinwhichDirectorsareinterested
TheCompanyhasnotenteredintoanycontractinwhichany
oftheDirectorsisinterested.
C) Code of Conduct: The Company’s Board of Directors and
officers inSeniorManagementhaveconfirmedcompliance
withtheCodeofConductoftheCompanyforthefinancial
year 2013-14. A declaration to this effect by the Whole
Time Director forms part of this report. The Code of
ConductframedforcompliancebytheDirectorsandSenior
Management is available on the Company’swebsitewww.
oclindialtd.in.
D) Risk Management: Risk evaluation and management is an
ongoing process within the Company. The Company has
identifiedthemajorriskareasandlaiddownframeworkfor
assessmentofriskswhicharereviewedfromtimetotime.
E) Details of compliance with mandatory requirements and
adoptionofnon-mandatoryrequirements
TheCompanyhascompliedwithallmandatoryrequirements
ofclause49oftheListingAgreement.
ARemunerationCommitteeoftheBoardisinplace.Detailsof
theRemunerationCommitteehavebeenprovidedunderthe
sectionIV“RemunerationofDirectors”.
42
OCLINDIALIMITED ANNUALREPORT2013-14
F) TradingintheCompany’ssharesbyDirectorsandDesignated
Employees
As per the SEBI (Prohibition of Insider Trading) Regulations,
1992,asamendedfromtimetotime,theCompanyisrequired
to have a ComplianceOfficerwho is responsible for setting
forth policies, procedures, monitoring adherence to the
rules for the prevention of price sensitive information, pre-
clearanceoftrade,monitoringoftradesandimplementation
of the Code of Conduct for trading in Company’s securities
undertheoverallsupervisionoftheBoard.TheCompanyhas
adoptedaCodeforPreventionofInsiderTrading.Ms.Rachna
Goria,GeneralManager(Legal)&CompanySecretary, isthe
complianceOfficerinrespectofcomplianceoftheCode.
VIII. MEANS OF COMMUNICATION
The Company apprises the shareholders through Annual
reports, publication of un-audited quarterly results and
audited financial results in Economic Times (English)
and in Oriya language newspaper. The Company is also
giving information about its products through its Web site
www.oclindialtd.in and www.ocl.in.
IX. SHAREHOLDERS INFORMATION
A) Generalinformation
RegisteredOffice : Rajgangpur-770017,(Odisha)
CIN L26942OR1949PLC000185
CorporateOffice : 17thFloor,NarainManzil
23,BarakhambaRoad
NewDelhi-110001
DetailsofPlant : CEMENTandREFRACTORY
location At:Rajgangpur-770017
Dist.:Sundargarh(Odisha)
KAPILASCEMENTMANUFACTURING
WORKSCuttack-753004(Odisha)
BENGALCEMENTWORKS
AshokNagar,CorporationBankBuilding,
Medinipur-721101(WestBengal)
Financialyear : 1stAprilto31stMarch
AnnualGeneral : 13thSeptember,2014at4.30PM
Meeting RestHouseoftheCompanyat
Date,timeand Rajgangpur-770017,
Venue Dist.Sundargarh(OdishaState)
BookClosure : 08thSeptember2014to
13thSeptember2014
(bothdaysinclusive).
Dividendpayment : Dividendwillbepaidafter13th
September,2014subjectto
declarationbytheshareholdersat
theAnnualGeneralMeeting.
B) Appointment/ReappointmentofDirectors
The appointment/re-appointment of Directors is
communicated to shareholders through the Notice of the
Annual GeneralMeeting. In the case of new appointments
information about the new Director is given through
explanatorystatementannexedtotheNotice.
C) FinancialResults
The Company’s quarterly un-audited results and half yearly
un-auditedresultsaresubjectedtolimitedreviewbyAuditors
and Annual results are subjected to Audit by the Statutory
Auditors. Quarterly un-audited and annual audited results
arepublished innewspapersandarealsoprovidedtoStock
Exchanges. The Company displays the financial results and
shareholding pattern on the Company’s Web site www.
oclindialtd.in.
D) ShareTransfersystemandRegistrars&shareTransferAgents
Pursuant to directions of SEBI the facility to hold the
Company’ssharesinelectronicformismadeavailabletothe
shareholders as the Company has joined both Depositories
namelyNSDLandCDSL.ShareTransferDocumentsforphysical
transferandrequestsfordematerializationofsharesaresent
totheCompany’sRegistrarsM/sCBManagementServices(P)
LimitedatP-22BondelRoad,Kolkata-700019.
E) ListingonStockExchanges
The Company’s equity shares continue to be listed and
actively tradedonNational Stock Exchangeof India Limited
andBombayStockExchangeLimited.TheCompanypaidthe
listingfeefortheyear2013-14totheBombayStockExchange
LimitedandNationalStockExchangeof IndiaLimitedwithin
thestipulatedtime.
Name of the Stock Exchange Code for Equity sharesTheBombayStockExchangeLimited 502165
TheNationalStockExchangeof
IndiaLimited
OCL
43
Corporate Overview Management Reports Financial Statements
F) SharepricesasperquotationsofBombayStockExchangeLimited&NationalStockExchangeofIndiaLimited
Month Bombay Stock Exchange Limited National Stock Exchange of India LimitedHigh (`) Low (`) High (`) Low (`)
April 2013 151.50 143.50 151.95 144.00May2013 156.95 136.00 156.50 139.00June 2013 153.75 135.00 151.00 135.50July2013 153.85 120.60 154.45 118.00August 2013 137.00 103.55 136.60 104.40September2013 142.95 127.00 140.00 126.00October2013 148.75 130.00 147.35 131.00November2013 149.00 132.20 146.90 135.00December2013 171.25 142.60 171.10 142.00January2014 194.25 152.10 194.50 150.65February2014 165.35 145.05 168.00 130.50March 2014 203.00 148.30 202.00 151.00
G) Shareholdingpatternason31stMarch,2014
Category Physical NSDL CDSL TotalResident Individuals 1452118 4945774 822532 7220424FinancialInstitutions 17500 -- -- 17500ForeignInstitutionalInvestors 300 226473 -- 226773ForeignNationals 17080 -- -- 17080Non Resident Indians 19635 2508593 6580 2534808BodiesCorporate 1380839 32469087 103985 33953911ClearingMember -- 59076 9584 68660Mutual Funds -- -- -- --Trusts -- 12798564 -- 12798564Banks 32245 26555 3700 62500OverseasCorporateBody -- -- -- --Insurance Companies -- -- -- --Total 2919717 53034122 946381 56900220
H) DistributionofShareholdingason31stMarch2014
Range No. of Shareholders % of Shareholders No. of Shares % of Shares1-100 4973 49.40 219389 0.39101-250 1595 15.84 285836 0.50251-500 1282 12.73 513958 0.90501-1000 1001 9.94 768942 1.351001-2000 639 6.35 918491 1.612001-3000 201 2.00 508933 0.893001-4000 86 0.85 302995 0.534001-5000 61 0.61 278462 0.495001-10000 114 1.13 754852 1.3310001&ABOVE 115 1.14 52348362 92.00TOTAL 10067 100.00 56900220 100%
44
OCLINDIALIMITED ANNUALREPORT2013-14
I) Performance in comparison to broad-based indices, i.e., BSE Sensex and S&P CNX Nifty.
OCL SHARE PRICE ON BSE VIS A VIS BSE SENSEX April2013-March2014
Months BSE Sensex Close OCL Share Price (on BSE)High ` Low ` Close `
April 2013 19504.18 151.50 143.50 150.95May2013 19760.30 156.95 136.00 147.35June 2013 19395.81 153.75 135.00 144.30July2013 19345.70 153.85 120.60 125.85August 2013 18619.72 137.00 103.55 128.00September2013 19379.77 142.95 127.00 135.00October2013 21164.52 148.75 130.00 141.00November2013 20791.93 149.00 132.20 145.00December2013 21170.68 171.25 142.60 165.95January2014 20513.85 194.25 152.10 154.20February2014 21120.12 165.35 145.05 151.85March 2014 22386.27 203.00 148.30 181.45
24000
23500
23000
22500
22000
21500
21000
20500
20000
19500
19000
18500
18000
200
180
160
140
120
100
80
60
40
20
0
Apr-13
May-13
Jun-13
Jul-1
3
Aug
-13
Sep-13
Oct-13
Nov-13
Dec-13
Jan-14
Feb-14
Mar-14
BSE
Sens
ex
OCL Share Price on BSE vis a vis BSE Sensex
BSE Sensex OCL Share Price (on BSE) Close
OCL
Sha
re P
rice
on
BSE
(Clo
sing
)
45
Corporate Overview Management Reports Financial Statements
OCL SHARE PRICE ON NSE VIS A VIS S&P CNX NIFTYApril2013-March2014
Months S & P CNX Nifty Close OCL Share Price (on NSE)High ` Low ` Close `
April 2013 5930.20 151.95 144.00 150.60May2013 5985.95 156.50 139.00 147.40June 2013 5842.20 151.00 135.50 145.15July2013 5742.00 154.45 118.00 125.90August 2013 5471.80 136.60 104.40 127.95September2013 5735.30 140.00 126.00 135.00October2013 6299.15 147.35 131.00 140.00November2013 6176.10 146.90 135.00 144.75December2013 6304.00 171.10 142.00 166.45January2014 6089.50 194.50 150.65 156.90February2014 6276.95 168.00 130.50 153.05March 2014 6704.20 202.00 151.00 183.80
6800
6600
6400
6200
6000
5800
5600
5400
200
190
180
170
160
150
140
130
120
110
100
Apr-13
May-13
Jun-13
Jul-1
3
Aug
-13
Sep-13
Oct-13
Nov-13
Dec-13
Jan-14
Feb-14
Mar-14
S&P CNX Nifty OCL Share Price (on NSE) Close
OCL Share Price on NSE vis a vis S&P CNX Nifty
S&P
CNX
NIF
TY
OCL
Sha
re P
rice
on
NSE
(Clo
sing
)
46
OCLINDIALIMITED ANNUALREPORT2013-14
AUDITORS’ REPORT ON CORPORATE GOVERNANCE
To the Shareholders of OCL India Limited
1. WehaveexaminedthecomplianceofconditionsofCorporateGovernancebyOCLIndiaLimited(“theCompany”)fortheyearended
March31,2014asstipulatedinClause49oftheListingAgreementofthesaidCompanywithStockExchangesinIndia.
2. TheComplianceofconditionsofCorporateGovernanceistheresponsibilityoftheCompany’smanagement.Ourexaminationwas
limited to the review of procedures and implementation thereof, adopted by the Company for ensuring the compliance of the
conditionsofCorporateGovernance.ItisneitheranauditnoranexpressionofopiniononthefinancialstatementsoftheCompany.
3. Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,wecertifythattheCompanyhas
compliedwiththeconditionsofCorporateGovernanceasstipulatedintheabovementionedListingAgreement.
4. WefurtherstatethatsuchcomplianceisneitheranassuranceastothefutureviabilityoftheCompanynortheefficiencyoreffectiveness
withwhichthemanagementhasconductedtheaffairsoftheCompany.
For V. SANKAR AIYAR & CO.Chartered Accountants
ICAIFRN:109208W
(R. RAGHURAMAN)Place:NewDelhi Partner
Date:May13,2014 MembershipNo.81350
DECLARATION BY MR. D. D. ATAL, CHIEF EXECUTIVE OFFICER AND WHOLE TIME DIRECTOR
TO
THEMEMBERSOFOCLINDIALIMITED
BasedontheaffirmationprovidedbytheDirectorsandpersonsinSeniorManagementoftheCompany,itisdeclaredthatalltheBoard
membersandSeniorManagementpersonnelarecomplyingwiththeCodeofConductframedbytheCompanyfortheDirectorsandSenior
Management.
For
OCL INDIA LIMITED
D. D. Atal
WholeTimeDirectorandChiefExecutiveOfficer
Dated:May13,2014
47
Corporate Overview Management Reports Financial Statements
Independent Auditors’ ReportTotheMembersofOCLIndiaLimtied
REPORT ON FINANCIAL STATEMENTS
We have audited the accompanying financial statements of OCL India Limited (“the Company”), which comprise the BalanceSheet as at 31stMarch 2014, the Statement of Profit & Loss andtheCash FlowStatement for the year thenendedanda summaryofsignificantaccountingpoliciesandotherexplanatoryinformation.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation of these financialstatements that give a true and fair view of the financial position,financialperformanceandcashflowsoftheCompanyinaccordancewiththeAccountingStandardsreferredtoinsub-section(3C)ofsection211oftheCompaniesAct,1956(“theAct”)readwithGeneralCircular15/2013 dated 13th September 2013 of the Ministry of CorporateAffairs in respect of Section 133 of the Companies Act, 2013. Theresponsibility includes thedesign, implementationandmaintenanceofinternalcontrolrelevanttothepreparationandpresentationofthefinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror.
Auditor’s Responsibility
Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbased on our audit.We conducted our audit in accordancewith theStandardsonAuditingissuedbytheInstituteofCharteredAccountantsofIndia.Thosestandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatement.
An audit involves performing procedures to obtain audit evidenceabout the amounts and disclosures in the financial statements. Theprocedures selected depend on the auditor’s judgement, includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements, whether due to fraud or error. In making those riskassessments, the auditor considers internal control relevant tothe Company’s preparation and fair presentation of the financialstatements in order to design audit procedures that are appropriate in thecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.Anauditalsoincludesevaluating the appropriateness of accounting policies used and thereasonablenessoftheaccountingestimatesmadebymanagement,aswellasevaluatingtheoverallpresentationofthefinancialstatements.
Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.
OPINION
Inouropinionandtothebestofour informationandaccordingtotheexplanations given tous, thefinancial statements give the information
requiredbytheActinthemannersorequiredandgiveatrueandfairviewinconformitywiththeaccountingprinciplesgenerallyacceptedinIndia:
a) inthecaseoftheBalanceSheet,ofthestateofaffairsoftheCompanyasat31stMarch2014;
b) inthecaseoftheStatementofProfitandLoss,oftheProfitfortheyearendedonthatdate;and
c) inthecaseofCashFlowStatement,of thecashflowsfortheyearendedonthatdate.
REPORT ON OTHER LEGAL AND REGULATORY REqUIREMENTS
1 Asrequiredbysection227(3)oftheAct,wereportthat:
(a) wehaveobtainedalltheinformationandexplanations,whichtothebestofourknowledgeandbeliefwerenecessaryforthepurposesofouraudit;
(b) inouropinion,properbooksofaccountasrequiredbylawhavebeenkeptbytheCompanysofarasappearsfromourexaminationofthosebooks;
(c) theBalanceSheet, StatementofProfitand Loss andCashFlowStatementdealtwithbythisreportareinagreementwiththebooksofaccount;
(d) in our opinion, theBalance Sheet, Statement of Profit andLossandCashFlowStatementcomplywiththeAccountingStandards referred to in sub-section (3C) of section 211 oftheCompaniesAct,1956readwithGeneralCircular15/2013dated 13th September 2013 of the Ministry of CorporateAffairsinrespectofSection133oftheCompaniesAct,2013.
(e) On thebasisofwritten representations received from thedirectorsason31stMarch2014andtakenonrecordbytheBoardofDirectors,noneofthedirectorsisdisqualifiedason31.03.2014frombeingappointedasadirector intermsofclause(g)ofsub-section(a)ofsection274oftheCompaniesAct,1956.
2. AsrequiredbytheCompanies(Auditor’sReport)Order,2003(“theOrder”)issuedbytheCentralGovernmentofIndiaintermsofsub-section(4A)ofsection227oftheAct,weencloseintheannexure,astatementonthemattersspecifiedinparagraphs4and5ofthesaidOrdertotheextentapplicable,onthebasisofsuchchecksofthebooksandrecordsoftheCompanyasweconsideredappropriateandaccordingtotheinformationandexplanationsgiventous.
For V. Sankar Aiyar & Co.Chartered Accountants
ICAIFirmRegn.No.109208W
R. RaghuramanPlace :NewDelhi PartnerDated :13.05.2014 MembershipNo.81350
48
OCLINDIALIMITED ANNUALREPORT2013-14
Annexure referred to in paragraph 2 of the Auditors’ report to the shareholders of OCL India Limited for the year ended 31st March 2014
i a) TheCompanyismaintainingproperrecordsshowingfull
particulars, including quantitative details and situation
offixedassets.
b) As explained to us and keeping in view that physical
verification of the fixed assets covering a substantial
valueoftheassetswascarriedoutbyanoutsideagency
in earlier year, the management has carried out the
physical verificationof itsassetsonceduring theyear
except for furniture&fixturesand somepartofoffice
equipments.Accordingtoinformationandexplanations
giventous,nomaterialdiscrepancieshavebeennoticed
to the extent of such verification. In our opinion the
frequencyofverificationisreasonableinrelationtosize
ofthecompany.
c) Since there is no substantial disposal of fixed
assets during the year, the preparation of financial
statementsonagoingconcernbasisisnotaffectedon
this account.
ii a) Thestockoffinishedgoods,stores,sparepartsandraw
materials,exceptthoseheldbyconsigneesandstoredin
customerpremises,havebeenphysicallyverifiedbythe
managementatreasonableintervals.
b) Inouropinion,theproceduresofphysicalverificationof
inventoryfollowedbythemanagementarereasonable
andadequateinrelationtothesizeoftheCompanyand
thenatureofitsbusiness.
c) In our opinion, the Company is maintaining proper
recordsofinventoryandnomaterialdiscrepancieswere
noticedonphysicalverification.
iii a) The Company has not granted any loans, secured or
unsecured,tocompanies,firmsorotherpartiesrequired
tobecovered intheregistermaintainedundersection
301oftheCompaniesAct,1956.
b) The Company has not taken any loans, secured or
unsecured, from companies, firms or other parties
requiredtobecoveredintheregistermaintainedunder
section301oftheCompaniesAct,1956.
iv In our opinion and according to the information and
explanationsgiventousandhavingregardtotheexplanations
inrespectofthemannerinwhichthepurchasepriceofsome
ofthe itemsaredeterminedorwherealternatequotations
arenotavailable,thereareadequateinternalcontrolsystem
commensuratewiththesizeoftheCompanyandthenature
ofitsbusinessforthepurchaseofinventoryandfixedassets
andforthesaleofgoodsandservices.Duringthecourseof
our audit,we have not observed any continuing failure to
correctmajorweaknesses in internalcontrolsystemof the
Company.
v According to the information given to us, there are no
contracts or arrangements during the year that need to be
enteredintotheregister inpursuanceofSection301ofThe
CompaniesAct,1956.Therefore,theProvisionsofclause4(v)
oftheorderarenotapplicabletotheCompany.
vi Inouropinionandaccordingtoinformationandexplanations
giventous,theCompanyhascompliedwiththeprovisionsof
sections58Aand58AAoranyotherrelevantprovisionsofthe
Actandtherulesmadethereunder,whereapplicable,with
regardtodepositsacceptedfromthepublic.
vii The Company has an internal audit system, which in our
opinion, is commensurate with its size and nature of its
business.
viii Wehavebroadlyreviewedthebooksofaccountsmaintained
bytheCompany,pursuanttotherulesmadebytheCentral
Government for the maintenance of cost records under
clause(d)ofsub-section(1)ofsection209oftheCompanies
Act, 1956 and are of the opinion that prima facie, the
prescribed accounts and records have been maintained.
Wehavenot,however,madeadetailedexaminationofthe
recordswithaviewtodeterminewhethertheyareaccurate
and complete.
ix a) AccordingtotherecordsoftheCompany,theCompany
has been generally regular in depositing undisputed
statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees’ State
Insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Cess and any other
statutorydueswiththeappropriateauthorities.There
were no arrears of undisputed statutory dues as at
31stMarch,2014,whichwereoutstandingforaperiod
ofmore than sixmonths from the date they became
payable.
49
Corporate Overview Management Reports Financial Statements
b) The disputed dues of different years, which have
remained unpaid as on 31st March, 2014, for which
appealsarependingasunder:
Nature of dues
Year Amount (` in lacs)
Forum where pending
Orissa SalesTax
1995-96and1997-98to2000-01
162.63 OrissaSalesTaxTribunal
Central SalesTax
2006-07 0.11 Addl. Commissioner ofSalesTax,cuttack
Orissa VAT
2005-06 293.35 CommissionerofSalesTax
WestBengalSalesTax
1996-97,1999-00,2001-02, 2004-05,and2010-11
310.74 WestBengalCommercial TaxesAppellate&RevisionalBoard
BiharSalesTax
2010-11 96.21 Joint Commissioner ofSalesTax(A),Patna
Cenvat Credit
01.12.2006 to 30.06.2008and 30.06.2011
3,756.38 CESTAT,KolkataCCE,BBSR
Income Tax
A.Y.2003-2004and2005-06
17.13 ITAT Delhi
Income Tax
A.Y.2005-06to2009-10
474.19 CIT(A)Delhi
x TheCompanyhasnoaccumulatedlossesandhasnotincurred
cashlossesduringthefinancialyearcoveredbyourauditorin
theimmediatelyprecedingfinancialyear.
xi On the basis of the verification of records and information
andexplanationsgiventous,theCompanyhasnotdefaulted
in repayment of dues to financial institutions or banks or
debentureholders.
xii TheCompanyhasnotgrantedloansandadvancesonthebasis
ofsecuritybywayofpledgeofshares,debenturesandother
securities.
xiii TheCompanyisnotachitfund/nidhi/mutualbenefitfund
/ society. Therefore, the provisions of clause 4(xiii) of the
Companies(AuditorsReport)Orderarenotapplicable.
xiv TheCompany is not dealing or trading in shares, securities,
debenturesandotherinvestments.Therefore,theprovisions
ofclause4(xiv)oftheCompanies(AuditorsReport)Orderare
notapplicable.
xv In our opinion and according to the information and
explanationsgiventous,thetermsandconditionsonwhich
the company has given guarantees for the loans taken by
others from banks, are not, prima facie, prejudicial to the
interestoftheCompany.
xvi In our opinion and according to the information and
explanationsgiventoustermloanstakenduringtheyearwere
appliedforthepurposeforwhichtheloanswereobtained.
xvii According to the information and explanations given to us,
theCash Flow statementexaminedbyus andonanoverall
examinationofthebalancesheetoftheCompany,wereport
thatfundsraisedonshort-termbasishavenotbeenusedfor
long term investment.
xviii Duringtheyear,theCompanyhasnotmadeanypreferential
allotmentofsharestopartiesandcompaniescoveredinthe
Registermaintainedundersection301oftheAct.
xix TheCompanyhasnotissuedanydebenturesduringtheyear.
Therefore,thequestionofcreatingsecurity/chargedoesnot
arise.
xx Sincetherewerenopublicissueofsecuritiesduringtheyear,
verificationoftheenduseofmoneydoesnotarise.
xxi Based on the audit procedure performed and the
representation obtained from the management, we report
thatnocaseofmaterialfraudonorbytheCompanyhasbeen
noticedorreportedduringtheyearunderaudit.
For V. Sankar Aiyar & Co.
Chartered Accountants
ICAIFirmRegn.No.109208W
R. Raghuraman
Place :NewDelhi Partner
Dated :13.05.2014 MembershipNo.81350
50
OCLINDIALIMITED ANNUALREPORT2013-14
Balance SheetAsat31stMarch,2014
` Lakhs Note no. 2013-14 2012-13
I. EqUITY & LIABILITIESShareholders' Funds
Share Capital 2 1,138.50 1,138.50Reserves and Surplus 3 1,09,852.93 1,02,728.12
1,10,991.43 1,03,866.62Non Current Liabilities
Long-termborrowings 4 53,567.65 43,259.14Deferredtaxliabilities(Net) 5 13,641.04 12,952.24Otherlongtermliabilities 6 3,280.06 3,179.99Long-termprovisions - -
70,488.75 59,391.37Current Liabilities
Short-termborrowings 7 8,251.12 24,644.38Tradepayables 8 21,279.15 16,097.33Othercurrentliabilities 9 34,789.65 29,888.03Short-termprovisions 10 3,104.45 1,347.03
67,424.37 71,976.77Total 2,48,904.55 2,35,234.76
II. ASSETSNon-current Assets
Fixedassets 11Tangibleassets 1,22,855.62 1,04,672.62Intangibleassets 505.83 455.93Capitalwork-in-progress 15,883.12 13,639.46Intangibleassetsunderdevelopment - 31.06
Non-currentinvestments 12 6,217.39 6,212.39Long-termloansandadvances 13 1,113.02 3,849.01Othernon-currentassets 14 27.93 27.02
1,46,602.91 1,28,887.49Current Assets
Current investments 15 24,513.13 26,518.72Inventories 16 31,874.64 35,254.25Tradereceivables 17 22,682.39 17,495.03Cash&bankbalances 18 8,555.32 14,024.58Short-termloansandadvances 13 14,140.83 12,701.98Other current assets 19 535.33 352.71
1,02,301.64 1,06,347.27Total 2,48,904.55 2,35,234.76
SignificantAccountingPoliciesOthernotesformingpartofthefinancialstatementsTheaccompanyingnotesformanintegralpartofthefinancialstatements
128
forOCL INDIA LIMITEDOnbehalfoftheBoard
AnnexuretoourReportofDate Rachna Goria Gaurav Dalmia forV Sankar Aiyar & Co. (GMLegal&CompanySecretary) (ExecutiveViceChairman CharteredAccountants &ManagingDirector) FirmRegistrationNo:109208W
R. Raghuraman D N Singh D. D. Atal Place:NewDelhi Partner ExecutiveDirector(Finance) (WholeTimeDirector&CEO)Date:13.05.2014 MNo.81350 &ChiefFinancialOfficer
51
Corporate Overview Management Reports Financial Statements
Statement of Profit and LossFortheyearended31stMarch,2014
` Lakhs Note no. 2013-14 2012-13
INCOME
Revenuefromoperations 20 1,85,551.59 1,81,728.89
Other income 21 3,655.39 2,531.40
1,89,206.98 1,84,260.29
EXPENDITURE
Costofmaterialsconsumed 22 41,172.25 44,686.51
Purchasesofstockintrade 23 3,832.72 7,734.66
Freight,clearing&handlingonownclinker 3,497.57 2,658.00
Changesininventoriesoffinishedgoods&workinprogress&stockintrade 24 3,237.26 (10371.17)
Employeebenefitsexpense 25 11,095.88 9,659.21
Powerandfuel 28,443.78 31,722.74
Finance costs 26 6,807.38 7,704.10
Depreciation&amortizationexpense 12,640.72 13,843.39
Otherexpenses 27 65,171.06 53,978.82
1,75,898.62 1,61,616.26
PROFIT BEFORE TAXATION 13,308.36 22,644.03
TaxExpense-CurrentTax 3,039.95 6,100.00
Less:MATcredit (208.02) -
-DeferredTax 688.80 905.44
PROFIT/ (LOSS) FOR THE YEAR AFTER TAX 9,787.63 15,638.59
EARNINGPEREQUITYSHARE(FaceValueof`2/-each)
1)Basic(`) 17.20 27.48
2)Diluted(`) 17.20 27.48
SignificantAccountingPoliciesOthernotesformingpartofthefinancialstatementsTheaccompanyingnotesformanintegralpartofthefinancialstatements
128
forOCL INDIA LIMITEDOnbehalfoftheBoard
AnnexuretoourReportofDate Rachna Goria Gaurav Dalmia forV Sankar Aiyar & Co. (GMLegal&CompanySecretary) (ExecutiveViceChairman CharteredAccountants &ManagingDirector) FirmRegistrationNo:109208W
R. Raghuraman D N Singh D. D. Atal Place:NewDelhi Partner ExecutiveDirector(Finance) (WholeTimeDirector&CEO)Date:13.05.2014 MNo.81350 &ChiefFinancialOfficer
52
OCLINDIALIMITED ANNUALREPORT2013-14
Cash FlowFortheyearended31stMarch,2014
` Lakhs2013-14 2012-13
A. CASH FLOW FROM OPERATING ACTIVITIESProfitbeforetaxfromcontinuingoperations 13,308.36 22,644.03Adjustmentfor:
Depreciation&AmortizationExpense 14,814.11 16,157.39Loss/(Profit)onsaleoffixedassets 1.79 10.89 EffectofExchangeRatedifference 943.11 254.00 ProfitonsaleofInvestment (19.55) (1.58)Interestexpense 6,564.87 7,296.31Interest receipt on investment (59.25) (70.03)Dividend on Investment (871.80) (1,283.33)
21,373.28 22,363.65Operatingprofitbeforeworkingcapitalchanges 34,681.64 45,007.68AdjustmentsforWorkingCapitalchanges
Increase/(decrease)intradepayables 5,181.82 5,055.04Increase/(decrease)inshorttermprovisions 93.15 39.65 Increase/(decrease)inothercurrentliabilities 4,738.24 4,947.40Increase/(decrease)inotherlongtermliabilities 100.07 1,196.66Decrease/(increase)intradereceivables (5,187.36) (5,426.25)Decrease/(increase)ininventories 3,379.61 (9,229.08)Decrease/(increase)inlongtermloansandadvances 25.49 (63.76)Decrease/(increase)inshorttermloansandadvances (1,912.12) (1,623.75)Decrease/(increase)inothercurrentassets (182.62) 321.59 Decrease/(increase)inothernoncurrentassets (0.91) 18.97
6,235.37 (4,763.53)CashgeneratedfromOperations 40,917.01 40,244.15
TaxPaid(Net) (2,358.66) (6,688.07)NetCashfromOperatingActivities 38,558.35 33,556.08
B. CASH FLOW FROM INVESTING ACTIVITIESPurchaseofFixedAssets (32,650.26) (17,143.19)Sale/writeoffofFixedAssets 99.36 64.50 Interest receipt on investment 59.25 70.03 ProfitonsaleofInvestment 19.55 1.58 PurchaseofnoncurrentInvestment(Net) (5.00) (4,865.69)PurchaseofcurrentInvestment(Net) 2,005.59 (9,795.92)Advanceforallotmentofshares - -Loansgiven - -Loansgivenreceivedback - 1,000.00Dividend on Investments 871.80 1,283.33NetCashgenerated/(-)usedinInvestingActivities (29,599.71) (29,385.36)
53
Corporate Overview Management Reports Financial Statements
Cash FlowFortheyearended31stMarch,2014(contd.)
` Lakhs2013-14 2012-13
C. CASH FLOW FROM INVESTING ACTIVITIESIncrease/(decrease)inlongtermborrowings 10,471.89 (10,165.92)Increase/(decrease)inshorttermborrowings (16,393.26) 16,687.44EffectofExchangeRatedifference (943.11) (254.00)CapitalSubsidyReceived - -IPRBenefitReceived - 576.84 DividendPaid (853.50) (1,138.01)TaxesonDividendPaid (145.05) (184.61)Interim Dividend paid - (1,422.51)Taxoninterimdividendpaid - (230.77)Interestexpense (6,564.87) (7,296.31)NetCashfromFinancingActivities (14,427.90) (3,427.85)NetchangesinCashandbankbalances (5,469.26) 742.87
NetIncrease/(-)DecreaseinCashandBankbalancesBalanceattheendoftheyear
(Referfootnoteinnoteno18)
8,555.32 14,024.58
Balanceatthebeginningoftheyear 14,024.58 13,281.71 (5,469.26) 742.87
forOCL INDIA LIMITEDOnbehalfoftheBoard
AnnexuretoourReportofDate Rachna Goria Gaurav Dalmia forV Sankar Aiyar & Co. (GMLegal&CompanySecretary) (ExecutiveViceChairman CharteredAccountants &ManagingDirector) FirmRegistrationNo:109208W
R. Raghuraman D N Singh D. D. Atal Place:NewDelhi Partner ExecutiveDirector(Finance) (WholeTimeDirector&CEO)Date:13.05.2014 MNo.81350 &ChiefFinancialOfficer
54
OCLINDIALIMITED ANNUALREPORT2013-14
1 SIGNIFICANT ACCOUNTING POLICIES
1.1 Accounting Convention
The financial statements are prepared under historical cost
convention(exceptforcertainfixedassetswhicharerevalued),
on a going concern basis and in accordance with applicable
accounting standards prescribed under the Companies
(AccountingStandards)Rules,2006.
1.2 Use Of Estimates
Thepreparationoffinancialstatementsrequiresmanagement
to make certain estimates and assumptions that affect the
amount reported in the financial statements and notes
thereto.Differencesbetweenactualresultsandestimatesare
recognisedintheperiodinwhichtheymaterialise
1.3 Fixed Assets including intangible Assets
Land, Buildings, Plant and Machinery relating to Cement
and Refractory Works acquired/installed upto 31.12.81 were
revaluedasat31.12.85.Allotherfixedassetsareshownatcost
(netofcenvat). Borrowingcostsattributable to theacquisition
of qualifying assets and all significant costs incidental to the
acquisitionofassetsarecapitalised.Intangibleassetsarerecorded
atconsiderationpaidforacquisitionofsuchassetsandarecarried
atcostlessaccumulatedamortisation.CapitalWorkinProgress&
IntangilbeAssetsunderdevelopmentareshownatcost.
1.4 Depreciation and Amortisation
Depreciation on Plant and Machinery added in Cement &
Refractoryafter31.12.81isprovidedonstraightlinemethod
anddepreciationonallotherassetsincludingKapilasCement
Works, Clinkerisation Unit at Rajgangpur (Line-II), Captive
PowerPlant&BengalCementWorksisprovidedonreducing
balance method . Depreciation has been calculated in the
manner and at the rates specified in Schedule XIV to the
CompaniesAct,1956.Anintangibleassetsismeasuredatcost
andamortisedsoastoreflectthepatterninwhichtheassets
economic benefit are consumed. The useful life has been
estimatedas3-5yearsincasecomputersoftware.
1.5 Investments
Long term Investments are valued at cost. Provision
for diminution in value is made, if in the opinion of the
management, such a decline is considered other than
temporary.CurrentInvestmentarevaluedatcostorfairvalue
which ever is lower.
1.6 Inventories
Stocksoffinishedandpartlyfinishedproductsarevaluedat
lowerofcostornetrealisablevalueandforthispurpose,cost
isdeterminedonabsorptioncostingmethod.Costoffinished
goods includes excise duty. Raw Materials, other inputs,
storesandsparesarevaluedatlowerofcost(netofcenvat)or
netrealisablevalueafterprovidingforobsolescence.Costis
determinedonFIFO/WeightedAverageBasis.
1.7 Revenue Recognition and Accounting for Sales & Services
Revenue from domestic sale of goods is recognised when
significantrisksandrewardsaretransferredtothecustomers.
Export Sales are accounted for on the basis of date of Bill
of Lading. Sales are net of trade discount and sales tax but
inclusiveofexciseduty.Bonusorpenaltylinkedtooperating
efficiency of products, where applicable, is accounted for
uponcrystalization. Income fromservicesareaccounted for
when becomes due. Interest income is recognised on time
proportionatebasis.Dividendincomeisaccountedfor,when
therighttoreceivethesameisestablished.
1.8 Treatment of Employee Benefits
TheCompanymakesregularcontributionstodulyconstituted
FundssetupforProvidentFund,FamilyPension,Gratuityand
Superannuationwhicharechargedtorevenue.Contribution
togratuityfundandprovisionforleaveencashmentaremade
onthebasisofactuarialvaluation.
1.9 Research and Development
Revenue expenses are charged off in the year in which it
is incurred under the natural heads of account. Capital
expenditure,whenincurredisaddedtothecostoffixedassets.
Notes to the Financial Statements Fortheyearended31stMarch,2014
55
Corporate Overview Management Reports Financial Statements
1.10 Foreign Currency Transactions
Foreigncurrencytransactionsarerecordedatexchangerate
prevailing on the date of transaction/realisation. Current
assets/liabilities are restated at rates prevailing at the year
endandresultantexchangedifferencearerecognised inthe
Statement of Profit and Loss. In case of forward exchange
contracts,thepremiumordiscountarisingattheinceptionof
suchcontractsisamortisedoverthelifeofthecontractaswell
astheexchangedifferenceonsuchcontractsi.e.,differences
betweentheexchangeratesatthereporting/settlementdate
andtheexchangerateonthedateofinception/lastreporting
date, is recognised in the Statement of Profit & Loss. Non-
monetary itemsdenominated inforeigncurrencyarevalued
attheexchangerateprevailingonthedateoftransaction.
1.11 Deferred Tax
In accordance with Accounting Standard-22 ‘Taxes on
Income,deferred tax is recognised, subject to consideration
of prudence, being the difference between accounting and
taxableincomethatoriginateinoneyearandarecapableof
reversalinsubsequentyear.
1.12 Impairment of Assets
Ateachbalancesheetdate, theCompanyassesseswhether
thereisanyindicationthatanassetmaybeimpaired.Ifany
suchindicationexists,theCompanyestimatestherecoverable
amount. If the carrying amount of the assets exceeds its
recoverableamount,animpairmentlossisrecognisedinthe
StatementofProfitandLosstotheextentthecarryingamount
exceedstherecoverableamount.
1.13 Provisions, Contingent Liability and Contingent Assets
The Company creates a provision when there is a present
obligationasaresultofpasteventthatprobablyrequiresan
outflowofresourcesandareliableestimatecanbemadeof
theamountofobligation.Adisclosureofcontingent liability
is made when there is a possible obligation or a present
obligationthatwillprobablynotrequireoutflowofresources
or where a reliable estimate of the obligation can not be
made.ContingentAssetsneitherrecognisednordisclosedin
thefinancialstatement.
56
OCLINDIALIMITED ANNUALREPORT2013-14
` Lakhs2013-14 2012-13
2. SHARE CAPITALAuthorised Shares
1,00,000(PreviousYear:1,00,000)Sharesof`100 each 100.00 100.007,00,00,000(PreviousYear:7,00,00,000)Sharesof`2 each 1,400.00 1,400.00
1,500.00 1,500.00Issued Shares
6,36,31,805(PreviousYear6,36,31,805)OrdinarySharesof`2 each 1,272.64 1,272.64Subscribed & paid up shares
5,69,00,220(PreviousYear5,69,00,220)OrdinarySharesof`2each,fullypaidup 1,138.00 1,138.00Add:SharesForfeitedAccount 0.50 0.50Total Subscribed & Paid up Share Capital 1,138.50 1,138.50
a) Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period
Particulars 31st March 2014 31st March 2013 No of Shares
(in lakhs)
(in lakhs `) NoofShares
(inlakhs)
(inlakhs`)
OrdinarySharesoutstandingatthebeginningoftheyear 569.00 1,138.00 569.00 1,138.00OrdinarySharesissuedduringtheyear - - - -OrdinarySharesboughtbackduringtheyear - - - -OrdinarySharesoutstandingattheendoftheyear 569.00 1,138.00 569.00 1,138.00
b) Terms/ rights attached to ordinary shares
TheCompanyhasissuedonlyoneclassofordinaryshareshavingaparvalueof`2/-pershare. Eachholderofordinarysharesis
entitledtoonevotepershare.TheCompanydeclaresandpaysdividendsinIndianrupees.ThedividendproposedbytheBoardof
DirectorsissubjecttotheapprovaloftheshareholdersintheensuingAnnualGeneralMeeting.
Duringtheyearended31stMarch2014,theamountofdividendpersharerecognisedfordistributiontoordinaryshareholdersis`4/-
(Previousyear:InterimDividend`2.50/-andFinaldividend`1.50/-pershare).
Ineventofliquidationofthecompany,theholdersofordinaryshareswillbeentitledtoreceiveremainingassetsofthecompany,after
distributionofallpreferentialamounts.
Thedistributionwillbeinproportiontothenumberofordinarysharesheldbytheshareholders.
c) Details of shareholders holding more than 5% shares in the Company
S. No. NameoftheShareholders As at 31 March 2014 As at 31 March 2013 No. of Shares
held (In Lakhs)
% of Holding No.ofShares
held(InLakhs)
%ofHolding
1 MriduHariDalmia(C/oMHDalmiaParivarTrust) 127.78 22.46% 122.56 21.54%2 DalmiaCement(Bharat)Limited 273.12 48.00% 258.15 45.37%3 DhartiInvestmentsandHoldingsLimited 34.77 6.11% 35.06 6.16%
d) Aggregatenumberofbonussharesissuedandsharesboughtbackduringtheperiodoffiveyearsimmediatelyprecedingthereporting
date:Nil.
57
Corporate Overview Management Reports Financial Statements
e) Inrespectofsharesissuedforconsiderationotherthancash,1,23,52,500ordinarysharesof`2/- eachfullypaidupwerealloted
duringtheyear2007-08totheshareholdersoferstwhileDalmiaCement(Meghalaya)Limitedpursuanttoaschemeofarrangement
formerger.
` Lakhs
2013-14 2012-13
3. RESERVES AND SURPLUSCapital Reserve
BalanceasperthelastFinancialStatements 741.90 165.06
Add:IPRBenefitreceivedduringtheyear(PYIPRBenefit) - 576.84
Closing Balance 741.90 741.90
Securities Premium Reserve
BalanceasperthelastFinancialStatements 19,600.00 19,600.00
Debenture Redemption Reserve
BalanceasperthelastFinancialStatements 1,526.35 1402.68
Add:TransferfromSurplusbalance - 123.67
Closing Balance 1,526.35 1,526.35
General Reserve
BalanceasperthelastFinancialStatements 60,425.87 48,425.87
Add:TransferfromSurplusbalance 12,000.00 12,000.00
Closing Balance 72,425.87 60,425.87
Surplus/ (Deficit)
BalanceasperthelastFinancialStatements 20,434.00 19,570.91
ProfitfortheyearasperthestatementofProfitandLoss 9,787.63 15,638.59
Less:Appropriations
ProposedDividend(Pershare`4/-(PreviousYear`.1.5/-)) 2,276.01 853.50
Dividenddistributiontaxonproposeddividend 386.81 145.05
InterimDividend(PreviousYear`2.5/-) - 1,422.51
Dividenddistributiontaxoninterimdividend - 230.77
TransfertoDebentureRedemptionReserve - 123.67
TransfertoGeneralReserve 12,000.00 12,000.00
TotalAppropriations 14,662.82 14,775.50
Closing Balance 15,558.81 20,434.00
Total 1,09,852.93 102,728.12
58
OCLINDIALIMITED ANNUALREPORT2013-14
` Lakhs Non Current Current
2013-14 2012-13 2013-14 2012-134. LONG TERM BORROWINGS
Securedi) Redeemable Non-Convertible Debentures
[email protected]% 1,100.00 - [email protected]%(Redeemable
during2014-15to2016-17)
4,800.00 6,000.00 1,200.00 -
4,800.00 7,100.00 1,200.00 Less:Shownunderothercurrentliabilites - - -1200.00 -
(Refernoteno9) 4,800.00 7,100.00 - -Thedebenturesare securedbywayoffirstparipassu chargeoverfixedassets (presentand future)ofCementDivisionof theCompanyexceptthosetoSyndicateBankareadditionalysecuredbywayoffirstpari-passuchargeonFixedAssetsofRefractoryDivisionoftheCompany.
Non Current Current2013-14 2012-13 2013-14 2012-13
ii) Term LoansFrom Banks
StateBankofIndia# (Repayablein32quarterlyinstallmentsfromDec,10)
3,291.49 4,255.49 964.00 964.00
StateBankofIndia# (Repayablein24quarterlyinstallmentsfromDec,12)
4,973.07 6,393.08 1,420.00 1,420.00
StateBankofIndia# (Repayablein31quarterlyinstallmentsfromJune,15)
5,000.00 1,300.00 - -
ExportImportBankofIndia# (Repayablein27quarterlyinstallmentsfromJune,10)
1,191.30 1,872.04 680.74 680.74
ExportImportBankofIndia(ForeignCurrencyLoan)# (Repayablein27quarterlyinstallmentsfromJune,10)
1,670.98 2,382.29 954.84 866.29
AxisBankLimited# (Repayablein20quarterlyinstallmentsfromMar,10)
1,500.00 1500.00 2,000.00
UnitedBankofIndia$ (Repayablein24quarterlyinstallmentsfromApr,11)
1,664.80 2,500.04 ,833.32 833.98
UnitedBankofIndia$ (Repayablein32quarterlyinstallmentsfromApr,11)
4,846.65 6,062.45 909.39 1,212.52
UnitedBankofIndia$ (Repayablein26quarterlyinstallmentsfromSept,15)
4,528.84 - - -
AxisBankLimtied# (Repayablein30quarterlyinstallmentsfromSept,15)
2,500.00 - - -
From OthersInternationalFinanceCorporation@ (Repayablein13halfyearlyinstallmentsfromOct,10)
6,313.86 9,470.78 3,156.92 3,156.92
InternationalFinanceCorporation# (Repayablein14halfyearlyinstallmentsfromJune,16)
12,098.00 - - -
48,078.99 35,736.17 10,419.21 11,134.45Less:Shownunderothercurrentliabilites - - (10,419.21) (11,134.45)
(Refernoteno9) 48,078.99 35,736.17 - -#SecuredbyFirstparipassuchargebywayofmortgageandhypothecationoverallimmovablepropertiesandmoveablefixedassetsofCementDivision,(bothpresentandfuture)andfurthersecuredbysecondparipasuchargeonallcurrentassetsoftheCompany.
$SecuredbyFirstchargeonfixedassetsoftheCementDivisionofCompany,bothpresentandfuturetobesharedparipassuwiththeprovidersoftheotherdebtandexistinglenders,furthersecuredbywayofsecondparipasuchargeoncurrentassetsofCementDivision.
@Securedby First rankingmortgage andHypothecationon all immovable&movable, present& future assets related to theCementDivision(excludingCurrentAssets)tobesharedparipassuwithotherlendersinrespectofotherdebtsandexistingsecuredlenderstotheCementDivisioninrespectoftheexistingdebt.
59
Corporate Overview Management Reports Financial Statements
`Lakhs Non Current # Current
2013-14 2012-13 2013-14 2012-13UnsecuredPublicDeposits
-RelatedParties(Refernoteno28.10(b1f)) - - - 15.00-Others 688.66 422.97 114.84 421.22
688.66 422.97 114.84 436.22Less:Shownunderothercurrentliabilites(Refernoteno9) - - (114.84) (436.22)#(Repayablein2014-15&2015-16) 688.66 422.97 - -Grand Total 53,567.65 43,259.14 11,734.05 11,570.67Less:ShownunderothercurrentLiabilities - - (11,734.05) (11,570.67)
53,567.65 43,259.14 - -
2013-14 2012-135. DEFERRED TAX LIABILITIES (NET)
Liabilities:Depreciation 15,442.01 14,173.06
Assets:DifferenceofvalueofStocku/s145AoftheIncomeTaxAct,1961 322.59 342.73Expensesallowableincomputingtaxableincomeonpaymentbasis 591.62 250.00Exchangelossonloanforcapitalexpenditure 288.73 219.79UnabsorbeddepreciationunderIncomeTaxAct,1961ProvisionforDoubtfulDebts&obsolescence 598.03 408.30
1,800.97 1220.82NetLiability 13,641.04 12,952.24
6. OTHER LONG TERM LIABILITIESTradePayables(Duetomicro&smallenterprises-Nil(PY-Nil)) 3,225.44 3,160.25Accruedinterestonpublicdeposits 54.62 19.74
3,280.06 3,179.99
7. SHORT TERMS BORROWINGSSecuredLoansrepayableondemand
CashCreditsfromBanks* 7,547.79 13,040.49OtherLoansandadvances
Buyer'sCreditfromBanks$ - 11,175.46UnsecuredPublicDeposits
-RelatedParties 26.75 --OtherthanRelatedParties 676.58 428.43
8,251.12 24,644.38*Workingcapitalfacilities(fundbased&nonfundbasedlimits)aresecuredbyfirstparipassuchargeoverstocks,stores,rawmaterials,inventories,workinprogress,finishedgoodsandalsobookdebts,billsandmoneysreceivableoftheCompanybywayofhypothecation.ThesefacilitiesarefurthersecuredbysecondchargeoverthefixedassetsoftheCementDivisionoftheCompany.$Buyerscreditissecuredbysubservientchargesonmoveablefixedassetsofcementdivisionofthecompany.
8. TRADE PAYABLESMicro&SmallEnterprises 28.64 94.88Others 21,250.51 16,002.45
21,279.15 16,097.33
60
OCLINDIALIMITED ANNUALREPORT2013-14
DisclosureasperSection22of“TheMicro,SmallandMediumEnterprisesDevelopmentAct2006”:`Lakhs
Particulars As at 31st March,
2014
As at 31stMarch,
2013 (i) theprincipalamountandtheinterestduethereonremainingunpaidtoanysupplier
-PrincipalAmount - --Interestthereon - -
(ii) theamountofinterestpaidbythebuyerintermsofSection16,alongwiththeamountsofthepaymentmadetothesupplierbeyondtheappointedday
- 0.20
(iii) theamountofinterestdueandpayablefortheperiod(wheretheprincipalhasbeenpaidbutinterestundertheMSMEDAct,2006notpaid)
- 0.01
(iv) Theamountofinterestaccruedandremainingunpaid(Sincepaid) - 0.25(v) Theamountoffurtherinterestdueandpayableeveninthesucceedingyear,untilsuchdate
whentheinterestduesasaboveareactuallypaidtothesmallenterprise,forthepurposeofdisallowanceasadeductibleexpenditureundersection23oftheMSMEDAct,2006.
- 0.06
2013-14 2012-139. OTHER CURRENT LIABILITIES
Currentmaturitiesoflong-termdebts(Refernoteno4) 11,734.05 11,570.67Interestaccruedbutnotdueonborrowings 900.24 1,048.17Unpaiddividends# 96.54 97.99Unpaidmatureddepositsandinterestaccruedthereon# 14.51 18.78On Capital Account 3,951.22 3,376.43SecurityDeposits 10,951.87 8,193.22Advancepaymentsfromcustomers 3,813.33 3,379.69Otherpayables
-Statutorydues 3,233.03 2,112.09-Directorscommission 37.40 37.40-Recoveriesfromemployeesonbehalfofothers 57.46 53.59
34,789.65 29,888.03#Therearenoamountdue&outstandingtobecreditedtotheInvestorEducation&ProtectionFund
10. SHORT TERM PROVISIONSEmployeebenefits
Leaveencashment(unfunded) 414.77 328.18 Superannuation(funded) 18.66 18.86
OthersExchangefluctuation-forwardcontracts 8.20 1.44 Proposeddividend 2,276.01 853.50 Taxonproposeddividend 386.81 145.05
3,104.45 1,347.03
61
Corporate Overview Management Reports Financial Statements
11. FIXED ASSETS`Lakhs
GrossBlock Depreciation/Amortization NetBlockFixedAssets As at
01.04.2013Additions Disposals/
AdjustmentsAs at
31.03.2014Up to
31.03.2013Fortheyear On disposals Up to
31.03.2014As at
31.03.2014As at
31.03.2013a Tangible Assets
Land 621.81 31.93 - 653.74 - - - - 653.74 621.81Landunderlease 1,792.26 125.45 - 1,917.71 43.11 20.91 - 64.02 1,853.69 1,749.15Buildings 10,081.86 2,254.86 23.95 12,312.77 3,862.35 467.82 18 4,311.73 8,001.04 6,219.51PlantandEquipment 1,74,098.37 29,887.81 77.57 2,03,908.61 83,665.19 12,893.92 73.40 96,485.71 107,422.90 90,433.18Plant&Equipmentunder lease 574.06 - - 574.06 417.37 27.27 - 444.64 129.42 156.69
FurnitureandFixtures 531.51 168.03 1.21 698.33 288.71 75.09 1.21 362.59 335.74 242.80Vehicles 5,039.82 124.13 16.89 5,147.06 3,049.57 611.91 14.82 3,646.66 1,500.40 1,990.25Officeequipments 1,965.91 343.47 29.50 2,279.88 1,261.55 286.00 28.24 1,519.31 760.57 704.36RailwayLine 4,597.86 0.00 - 4,597.86 2,054.65 353.76 - 2,408.41 2,189.45 2,543.21LiveStock 11.66 0.43 3.42 8.67 - - - - 8.67 11.66Total 1,99,315.12 32,936.11 152.54 2,32,098.69 94,642.50 14,736.68 136.11 1,09,243.07 1,22,855.62 1,04,672.62
b Intangible AssetsComputersoftware 706.24 212.05 - 918.29 250.31 162.15 - 412.46 505.83 455.93Total 706.24 212.05 - 918.29 250.31 162.15 - 412.46 505.83 455.93Total a & b 2,00,021.36 33,148.16 152.54 2,33,016.98 94,892.81 14,898.83 136.11 1,09,655.53 1,23,361.45 1,05,128.55PreviousYear 1,85,282.49 15,004.11 265.24 2,00,021.36 78,925.27 16,209.13 241.59 94,892.81 1,05,128.55 1,06,357.22
c Capital Work In Progress
15,883.12 13,639.46
Total - - - - - - - - 15,883.12 13,639.46d Intangible assets under
Development31.06
Total - - - - - - - - - 31.06
Notes1. GrossBlockincludesamountaddedin1985onrevaluationofLand`132.31 lakhs,Buildings`1,200.64 lakhs andPlantandMachinery`1,917.55 lakhs as carried
outbyanexternalindependentvaluer.Sincethevaluationwascarriedoutlongbacktheindicesappliedbythevaluerisnotavaliable.2. AdditionstoFixedAssetsandCapitalwork-in-progressincludenetborrowingcostof`1,314.36 lakhs capitalisedduringtheyear(PreviousYear`28.22 lakhs).3. AdditiontoCapitalWIPincludesPreoperativeexpenses/incomeasdetailedunderNote28.19.4. Therehasbeennoimpairmentlossonassetsduringtheyear.5. Depreciationof`84.72 Lakhs forMedinipurunithasbeenchargedtoPreoperativeexpenses.
Face Value No.ofShares/Units Amount(In`Lakhs)2013-14 2012-13 2013-14 2012-13
12 NON CURRENT INVESTMENTSTRADE - Unquoted - At CostEquity Instruments - Fully paid upSubsidiary(w.e.f01.01.2013)
OCLGlobalLtd(FaceValueinUSD) 1 1,00,000 100,000 4,145.18 4,145.18OdishaCementLimited 10 50,000 5.00
Joint VentureRadhikapur(West)CoalMiningPvtLtd(Note28.7) 10 73,48,000 73,48,000 734.80 734.80
OthersFirstCapitalIndiaLimited 6 166 166 0.01 0.01 IndiaInformationTechnologyLimited(`10/-) 10 1 1 - -
Preference Shares - Fully paid upSubsidiary(w.e.f01.01.2013)
OCLGlobalLtd(FaceValueinUSD)* (5%non-cumulativeredeemable)
1 27,30,000 27,30,000 1,330.42 1,330.42
Total (A) 6,215.41 6,210.41*Redeemableattheoptionofthecompanyintranchesofthecompany'schoicebutnotlaterthan10yearsfromthedateofissue.
62
OCLINDIALIMITED ANNUALREPORT2013-14
Face Value No.ofShares/Units Amount(In`Lakhs)2013-14 2012-13 2013-14 2012-13
NON TRADE - UNqUOTED (Unless Otherwise Stated)At CostEquity Instruments - Fully paid upOthers
CrescentFinstockLimited 10 1,400 1,400 - -GujaratCompositeLimited 10 16 16 - -IspatProfilesIndiaLimited(`75/-) 10 50 50 - -BagalkotUdyogLimited 1 100 100 0.01 0.01OrissaIndustriesLimited 10 73,450 73,450 1.40 1.40TheScindiaSteamNavigationCompanyLtd 20 504 504 0.06 0.06TheTravancoreCementsLimited 10 100 100 0.01 0.01DigvijayFinleaseLimited 10 25 25 - -IndoFlogatesLimited 10 100 100 0.01 0.01BagalkotCement&IndustriesLtd 10 1 1 - -KanoriaSugar&GeneralMfg.CoLtd(`183/-) 10 25 25 - -Magnesite&MineralsLimited 10 100 100 0.01 0.01UshaIspatLimited 10 100 100 0.01 0.01OrindExportsLimited(`201/-) 10 100 100 - -
Debentures or BondsNon-convertibleSecured-Fullypaidup
8%-IndianChamberofCommerce 100 12 12 0.01 0.01Non-convertibleSecured-Partlypaidup
8%-IndianChamberofCommerce-
Fractional(`50/-)
25 2 2 - -
Others - Fully Paid upCo-operativeSociety 100 50 50 0.05 0.05 PropertyRightsinHolidayResort 4 4 0.41 0.41
Total (B) 1.98 1.98 Total ( A + B) 6,217.39 6,212.39Quoted InvestmentsUnquotedInvestments 6,217.39 6,212.39
6,217.39 6,212.39Marketvalueofquotedinvestments - -
Note:Costbelow`400/-aregiveninbrackets
63
Corporate Overview Management Reports Financial Statements
` Lakhs Non Current Current
2013-14 2012-13 2013-14 2012-1313. LOANS AND ADVANCES
Capital Advances Secured-consideredgood 474.60 2,161.41 - -Unsecured-consideredgood 485.96 1,509.65 - -Unsecured-considereddoubtful - 6.36 - -Less:Provisionfordoubtfuladvances - 6.36 - -Security Deposits Unsecured,consideredgood 27.78 62.35 2,609.21 2,425.18Loans and advances to related partiesUnsecured,consideredgood(Refernoteno28.10b(2d)&(3j)) - - 2.75 23.07 Other loans and advancesSecured,consideredgood
Loantoemployees 15.53 7.59 6.66 2.64 Advancesrecoverableincashorinkind - - - -
Unsecured,consideredgoodBalanceswithgovt.authorites - - 5,123.61 2,827.21Advanceforallotmentofshares - - - -Loan/Advancesrecoverableincash/kind 79.02 97.90 3,201.47 3,798.23Loans/advancestoemployees* 30.13 10.11 102.44 57.69 Matcreditentitlement - - 208.02 -Advanceincometax(netofprovisionfortaxation) - - 2,886.67 3,567.96
Unsecured-considereddoubtful - - 27.14 52.86 Less:Provisionfordoubtfuladvances - - 27.14 52.86
1,113.02 3,849.01 14,140.83 12,701.98Loan due by director or other officers etc
*OtherofficersoftheCompany 43.92 19.10
14. OTHER NON CURRENT ASSETSUnsecured,consideredgood 27.93 27.02 Accrued interest 27.93 27.02
64
OCLINDIALIMITED ANNUALREPORT2013-14
Face Value
No.ofShares/Units Amount(In`Lakhs)2013-14 2012-13 2013-14 2012-13
15 CURRENT INVESTMENTSNON TRADE - Unquoted - At Cost or NAV whichever is lowerUnits of Mutual Funds - Fully Paid up
UTITreasuryAdvantageFund-InstPlan(DDP)-Reinvest
6,37,339.68 8,84,476.41 6,388.19 8,846.66
BirlaSunlifeSavingFund-Instl.-DD-Reinvest 71,17,374.71 44,80,144.13 7,147.70 4,484.39BirlaSunlifeDynamicBondFund-RetailPlan-MonthlyDivd-Reivest
-
BirlaSunLifeFixedTermPlanSeriesFCGrowth - 19,800,000.00 - 1,980.00BSLDynamicBondFund-Retail-Growth - 9,489,165.05 - 1,799.99MF-IDFCMoneyManagerFund-TreasuryPlan-DailyDividend
15,917,599.05
-
1,602.89
-
IDFCMoneyManagerFund-TreasuryPlan-SuperInstPlanC-DD
-
-
-
-
ICICIPrudentialFlexibleIncomePlanPremium-DailyDividend
57,98,148.59
33,74,944.15
6,130.72
3,568.50
ICICIPrudentialInstShorttermPlan-DivdReinvestment Fortnight
38,582.22
6,09,915.66
4.58
75.81
ICICIPrudentialReguShorttermPlan-DivdReinvestment Fortnight
-
14,983.64
-
1.80
ICICIPrudentialFMPSeries63-370Days - 20,000,000.00 - 2,000.00ICICI-ShorttermPlan-RegularGrowth - 3,887,997.76 - 900.00 ICICIPrudentialIntervalFundQuartelyIntervalPlanI-DirectPlan-Dividend 8,000,000.00 - 800.00 -ICICIPrudentialIntervalFundIIQuarterlyIntervalPlanB-DirectPlan-Dividend 4,998,250.00 - 500.00 -SBI-SHF-UltraShorttermFund-RegularPlan-DD 1,13,572.54 205,892.44 1,139.05 2,061.57Templeton India Short term income retail plan 35,256.23 35,256.23 800.00 800.00 Total 24,513.13 26,518.72
Net Asset Value 24,631.02 27,069.20
`Lakhs2013-14 2012-13
16. INVENTORIES (REFER NOTE 1.6 FOR MODE OF VALUATION)Raw Materials and components
-InStock 6,132.31 6,411.56-InTransit 55.52 649.22
Work-in-progress-InStock 4,215.81 5,663.68-InTransit 212.08 116.14
Finished goods-InStock 6,403.22 8,583.85-InTransit 601.03 628.43
Stock-in-trade-InStock 51.75 282.01 -InTransit 552.96
Stores,spares,fuel&packingmaterials-InStock 10,053.96 12,688.25-InTransit 3569.69 202.77
LooseTools-InStock 26.31 28.34
Total 31,874.64 35,254.25
65
Corporate Overview Management Reports Financial Statements
`Lakhs2013-14 2012-13
17. TRADE RECEIVABLESOutstandingforaperiodexceedingsixmonthsfromthedatetheyaredueforpayment
Secured,consideredgood 464.79 116.69Unsecured,consideredgood 1,539.40 1186.19Unsecured,considereddoubtful 1389.01 903.07
3,393.20 2,205.95Less:Provisionfordoubtfuldebts 1389.01 903.07
2004.19 1302.88Others
Secured,consideredgood 6,732.82 4,159.13Unsecured,consideredgood 13,945.38 12,033.02
20,678.20 16,192.15Total 22,682.39 17,495.03
18. CASH & BANK BALANCESCash & Cash EquivalentsBalancewithbanks:
-Incurrentaccounts 6,601.85 5,603.16-Indepositwithoriginalmaturityoflessthan3months 1,700.00 7,500.00-Inunpaiddividendaccount 96.54 97.99
Cheques&draftsonhand - 190.26Funds in transit - -Cash on hand 23.71 21.96Stamps on hand 0.03 0.04Other Bank BalancesDepositsEarmarked(CY-againstPublicDeposits)(PY-againstPublicDeposits&NOC) 133.19 611.17
8,555.32 14,024.58
19. OTHER CURRENT ASSETSInterestaccruedbutnotdue 265.01 188.44Claims&otherreceivable
Considered good 238.92 152.72Considereddoubtful 8.44 7.33
Assetsheldforsale(atlowerofnetbookvalueandnetrealisablevalue) 14.87 11.23Others 16.53 0.32
543.77 360.04Less:Setofffromprovisionfordoubtfuldebts 8.44 7.33
535.33 352.71
66
OCLINDIALIMITED ANNUALREPORT2013-14
`Lakhs2013-14 2012-13
20. REVENUE FROM OPERATIONS (REFER NOTE NO 1.7 ON REVENUE RECOGNITION)Sale of Products
Cement 1,73,776.58 1,68,374.37Refractories 28,892.51 27,219.22Power 216.57 -Others-Clinker 2,456.68 1,009.48Others-Dolomite 63.50 73.74
Self Consumption of ProductsCement 452.30 381.89Refractories 1080.71 958.34
Sale of Traded ProductsSlag,Coal&Gypsum 5.54 3,509.38Refractories 3,567.72 4,466.67
Sale of ServicesMarketingServices 801.05 450.94BusinessAuxiliaryServices 9.07 15.40
Other Operating Revenue 697.40 845.592,12,019.63 2,07,305.02
Less: Excise Duty 26,468.04 25,576.131,85,551.59 1,81,728.89
21. OTHER INCOMEInterestReceipts-Ondeposits,taxrefundsandfromcustomersetc. 579.62 266.63Profitonsaleofassets 0.71 -MTMgainoninterestderivative - -Dividendsfrominvestmentsinmutualfunds-current 871.80 1,283.33Profitonsaleoflongterminvestment 681.20Profitonsaleofcurrentinvestments 19.55 1.58OtherNonOperatingIncome 1,502.51 979.86
3,655.39 2,531.40
22. COST OF MATERIALS CONSUMEDi) Limestone(OwnQuarry)-Seefootnote(b)below 11,090.33 9,744.14ii) Slag 15,212.52 15,568.79iii) PurchasedClinker - 2,686.44iv) Others# 14,869.40 16,687.14
41,172.25 44,686.51
67
Corporate Overview Management Reports Financial Statements
`Lakhs2013-14 2012-13
Note:a) # None of these individually account for more than 10% of the total cost of material
consumedb) Expenses included in the cost of raw materials
SalariesandWages 602.90 504.57ContributiontoProvidentandOtherFunds 64.66 61.43WorkmenandStaffWelfareExpenses 42.02 54.84PaymenttoContractorsforServices 1,588.39 1,809.42PowerandFuel 854.70 1,085.64ConsumptionofStoresandSpareParts 3,115.50 1,720.59RepairstoMachinery 1,750.15 1,510.11RepairstoBuildings 4.17 19.06RoyaltyandCess 1,691.29 1,828.00Rent 1.46 4.91RatesandTaxes 119.02 79.33Insurance 32.79 24.51Commission to Other Agents - -Depreciation 2,173.39 2,314.00SundrySales/Income (47.56) (36.08)
11,992.88 10,980.33
23. PURCHASE OF GOODS TRADEDSlag,Coal&Gypsum 5.76 3,454.03Refractories 3,826.96 4,280.63
3,832.72 7,734.66
24. CHANGES IN INVENTORIES OF FINISHED GOODS , WORK IN PROGESS & STOCK IN TRADEStocksatthebeginningoftheyear
Finished Goods 9,212.28 3,269.92Traded Goods 282.01 380.24WorkinProgress 5,779.82 1,252.78
15,274.11 4,902.94Less:Stocksattheendoftheyear(Seefootnotebelow)
Finished Goods 7,004.25 9,212.28Traded Goods 604.71 282.01WorkinProgress 4,427.89 5,779.82
12,036.85 15,274.11 3,237.26 (10,371.17)
FootNote:-Stock in Tradea) Finsihed Goods
Cement 2,840.62 4,718.77Refractories 4,163.63 4,493.51
7,004.25 9,212.28b) Traded Goods
Refractories 604.71 282.01
c) WorkinProgressCement 3,257.06 4,567.11Refractories 1,170.83 1,212.71
4,427.89 5,779.82
68
OCLINDIALIMITED ANNUALREPORT2013-14
`Lakhs2013-14 2012-13
25. EMPLOYEE BENEFITS EXPENSE(Refernote1.8onemployeebenefits)Salaries,Wages,BonusandGratuity 9,427.59 8,036.33ContributiontoProvidentandOtherFunds 892.47 864.23ContributiontoProvidentandOtherFunds-Contractorsemployees 309.30 262.57WorkmenandStaffWelfareExpenses 466.52 496.08
11,095.88 9,659.21
2013-14 2012-1326. FINANCE COSTS
InterestexpenseOnTermLoans,DebenturesandDeposits 5,633.40 7,044.39ToBanksandOthers 931.47 251.92
OtherBorrowingCost 95.31 246.39Applicablenetgain/lossonforeigncurrencytransactionsandtranslation 147.20 161.40
6,807.38 7,704.10
2013-14 2012-1327. OTHER EXPENSES
ConsumptionofStores,SparepartsandPackingmaterials 9,954.44 9,074.10Repairs and Maintenance
Machinery 5,691.85 5,798.88Buildings 530.83 632.21 Others 140.38 150.56
PaymentstoContractorsforServices 4,540.35 4,245.27RoyaltyandCess 15.78 14.54 Rent 954.11 676.56 RatesandTaxes 1,926.74 940.80 ExcisedutyonStockandOthers (409.95) 1,098.00Freight,TransportationandHandling 26,966.41 20,447.33Commission to Selling Agents 751.78 583.92 Rebates,DiscountsandAllowances 444.98 366.64 Insurance 323.61 274.78 Travelling 671.59 509.18 AdvertisementandPublicity 1,671.85 1,929.48Legal 157.12 238.25 Directors'TravellingandConveyance 16.66 15.18 Directors'Fees 9.90 10.30 CommssiontoNonExecutiveDirectors 41.55 41.55 CommssiontoExecutivevicechairman&ManagingDirector 100.00 -CharityandDonations 556.96 487.70 LossonsaleofCurrentInvestments 42.70 -AssetsWrittenoffandLossonSaleofAssets 2.50 10.89 LossduetoExchangefluctuationotherthanfinancecost(Net) 795.91 92.60 ProvisionforDoubtfulDebts 474.81 191.01 BadDebtsWrittenOff 0.50 -ProvisionforObsolesenceinInventory 26.17 PaymentstoOutsideAgencies 3,903.53 2,655.35MiscellaneousExpenses 4,868.00 3,493.74
65,171.06 53,978.82
69
Corporate Overview Management Reports Financial Statements
`Lakhs2013-14 2012-13
28. OTHER NOTES FORMING PART OF THE FINANCIAL STATEMENTS28.1 Contingent liabilities not provided for in respect of :
(i) ClaimsagainsttheCompanynotacknowledgedasdebts(a) Disputed liability relating to ESI Contribution on over time wages and other
allowances57.95 55.95
(b) DisputedliabilityrelatingtoPFContributiononcertainallowances 71.22 71.22(c) Disputed liability relating topaymentof premiumon forest landused forMining
purpose154.13 154.13
(d) ForPollutionControlBoard,Orissa 8.86 8.86(e) DisputedclaimforsupplyofRefractories 156.30 156.30(f) DisputedliabilitiesrelatingtoRailwayforenhancedGodownrentandoverloading
penal charges197.49 175.91
(g) DisputedSalesTaxdemand(includinginterest&penalty)-matterunderappeal 665.57 629.00(h) DisputedEntryTaxdemand-matterunderappeal 293.28 149.66(i) DisputedExcisematters 3,756.38 4,265.49(j) DisputedliabilitiesrelatingtopurchaseofElectricity 302.16 358.92 (k) DisputedliabilitiesforLanjibernaMinesforpaymentofStampDuty 8,349.76 -(l) Others 222.15 363.04
14,235.26 6,388.48(ii) OthermoniesforwhichtheCompanyiscontingentlyliable:
(a) Disputedliabilityrelatingtolabourmatters-pendinginCourts 4.57 4.57(b) DisputedliabilityrelatingtoLandmatters-pendinginCourts 39.51 39.51(c) Others 78.50 78.50Total 122.58 122.58
(iii) DisputedliabilityinrespectofIncomeTaxdemands 213.03 302.88
In respect of items above, future cash outflows in respect of contingent liabilities aredeterminable only on receipt of judgements / decisions pending at various forums /authorities.
(iv) a) Securityprovidedtobankinrespectof loangranteduptoUSD3.50mn.(USD8.39Lakhs)(PYUSD12.56Lakhs)toOCLGlobalLimited,aSubsidiary,(w.e.f01.01.2013)-firstparipassuchargeoncurrentassetsofthecompanyandfurthersecuredbysecondparipassuchargeonfixedassets,ofcementdivisionofthecompany,loanoutstandingamountasonthebalancesheetdate
498.21 689.13
b) GuaranteegiventoBanksonbehalfofOCLChinaLtd(USD29.48Lakhs) (PYUSD11.84Lakhs)(astepdownSubsidiaryw.e.f01.01.2013)
1,749.75 649.84
c) GuaranteegiventoBanksonbehalfofRadhikapur(West)CoalMiningPrivateLimitedagainstwhichcounterguaranteeof`332.00Lakhs(PY561Lakhs)hasbeenreceivedfromOCLIron&SteelLtd
636.00 1,076.00
28.2 Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for
5,865.96 15,644.97
28.3 Remuneration to Auditors and ExpensesAuditors
Audit Fee 16.00 13.00TaxAuditFee 4.00 2.50
InOtherCapacitiesTaxationmatters 0.75 -CertificationofQuarterlyLimitedReview 6.00 4.20CertificationofotherStatements(incl.`2.50LakhforConsolidatedFSofPY) 7.10 2.85ExpensesincludingboardingandLodging 13.00 8.65
Cost AuditorAudit Fee 0.70 0.70ExpensesincludingboardingandLodging 0.21 0.50
70
OCLINDIALIMITED ANNUALREPORT2013-14
28. OTHER NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONT…)
28.4 IntheopinionoftheBoardandtothebestoftheirknowledgeandbelief,thevaluationonrealisationofcurrentassets,loansand
advancesintheordinarycourseofbusinesswouldnotbelessthantheamountatwhichtheyarestatedintheBalanceSheet.
28.5 TheSupremeCourtofIndiainApril,1996,upheldthevalidityofJutePackingMaterials(CompulsoryuseinPackingCommodities)Act,
1987.TheCompanyhasbeenlegallyadvisedthattheActisapplicabletoitonlywitheffectfromOctober,1996.UndertheAct,Cement
ManufacturersarerequiredtouseJutePackagingMaterialforsupplyordistributionupto50%oftheirtotalproduction.TheCalcutta
HighCourthasgrantedstayagainstshowcausenoticereceivedbytheCompanyfromtheJuteCommissioner.TheTransferPetitionfiled
bytheUnionofIndiabeforetheHon’bleSupremeCourtwasdismissedbytheHon’blecourtduetodefaultandasaresultofwhich
thependingwritoftheCompanywillbeheardbytheHon’bleKolkataHighCourtonmerits.Theamountthatmaybecomepayable,is
presentlynotascertainable.However,theGovernmenthasnotnotifiedthecompulsorypackingofCementinjutepackingmaterials
fortheperiodeffectivefrom1stJuly,1997.
28.6 Duringtheyearanamountof`115.00lakhs(PY25.00lakhs)hasbeendonatedto“RashtriyaAhinsaManch”aregisteredPolitical
partyunder section29AofRepresentationof thePeopleAct,1951having its registeredofficeat132/1,MahatmaGandhiRoad,
Kolkata-700007.
28.7 InrespectoflicencegrantedforcaptiveminingBlockatRadhikapurmines,aJointVenturecompanyRadhikapur(West)CoalMining
PrivateLimitedhasbeenincorporatedon29thMarch2010inwhichtheCompany’sinterestjointlywithOCLIron&SteelLimited(OISL)
is14.696%.TheCompanyhasinvested`734.80Lacs(PY734.80lakhs)inequitysharesoftheJVCompanywhichincludes`383.35Lacs
(PY`383.35lakhs)beingproportionatevalueofsharestobetransferedtoOISLafterthereceiptofapprovalfromtheMinistryofCoal,
GovtofIndiaandotherJointVenturePartners.
ThedetailsoftheCompany’sinterestinJ.Vareasunder:
`LakhsParticulars As at
March 31, 2014
(Unaudited)
As at March 31,
2013(Unaudited)
EqUITY & LIABILITIESCurrent LiabilitiesShort-termborrowings - -Tradepayables 0.92 0.85 OthercurrentLiabilities 0.02 0.01 Total 0.94 0.86 ASSETSNon-current AssetsTangibleassets 0.22 0.25 Pre-OperativeExpenses 63.02 66.51 Longtermloansandadvances 149.80 149.80 Current assetsCashandbankbalances 130.97 128.72 Short term loans and advances 3.28 2.16 Other current assets 5.11 4.87 Total 352.40 352.31
Thisispre-operatingperiodoftheJointVenturecompany.Alltheexpenditureincurredtillcommencementofcommercialproduction
isclassifiedas‘MinesDevelopment&Pre-OperativeExpenses’pendingcapitalizationunderpre-operativeexpenses.
71
Corporate Overview Management Reports Financial Statements
28. OTHER NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONT…)
28.8 TheMinistryofCoal,Governmentof Indiavide its letterdt.14.2.2014cancelled theallocationof coalblocks to the jointventure
companyallegingdelay inundertakingproduction.The joint venturecompanyand theCompanyfiledawritpetitionbefore the
Hon’bleDelhiHighCourt,whichhasdirectedtheMinistrytomaintainstatusquotillthenextdateofhearingandnottotakeany
furtherstepstoreallocatethecoalblocksorforcreatinganythirdpartyrightstherein,tilltheirfurtherorders.TheCourthasalsogiven
libertytotheCompanytoapproachit,ifthereisanyactionforencashmentofbankguarantee.TheCompanyhastakenthestandthat
thedelayhasoccurred,mainlyonaccountoftheStateandCentralGovernmentandconsequentlyde-allocationisnotwarranted.
Inthecircumstances,thecompanyisoftheviewthatthesituationdoesnotaffectthecarryingcostoftheinvestmentsanditisnot
requiredtorecognisedecline(ifany)ofitsinvestmentsasonasontheBalancesheetdate.
28.9 Bankbalancesincludes`45,494/-(PY`45,794/-) lyinginacurrentaccountwithanationalisedbank,tobeoperatedjointlybythe
authorisedsignatoriesoftheCompanyandOISLinrespectofCoalBlockOperationsasmentionedinnote28.7above.
`Lakhs Cement Refractory Others Unallocable Total
28.9 Segment Disclosure (AS - 17)Segment operating Revenue
External 1,76,455.37 33,325.08 - 8.77 20,97,89.22(1,72,893.23) (32,210.57) - (15.40) (2,05,119.20)
Inter-Segment 335.79 463.01 - - 7,98.80(4.35) (421.39) - - (425.74)
Segment ResultProfit/(Loss)beforetaxandinterest 22,303.00 1,538.00 - (3,725.26 ) 20,115.74
(31,310.17) (1,881.24) - (2,843.28) (30,348.13)Less:Interest (6,807.38) (6,807.38)
(7,704.10) (7,704.10)ProfitbeforeTaxation 13,308.36
(22,644.03)ProvisionforTaxation-Current (3,039.95) (3,039.95)
(6,100.00) (6,100.00)Less:MATCreditentitlement -Deferred
208.02 208.02 (688.80) (688.80)(905.44) (905.44)
ProfitafterTaxation 97,87.63(15,638.59)
Other Information Segment Assets 1,85,137.27 29,545.06 34,222.22 2,48,904.56
(1,72,428.74) (26,084.28) (36,721.74) (2,35,234.76)SegmentLiabilities 39,795.23 6,867.75 91,250.13 1,37,913.12
(31,425.04) (5,143.92) (94,799.18) (1,31,368.14)CapitalExpenditureincludingcapitalWIP 34,599.15 736.74 24.87 35,360.76
(13,290.84) (274.60) (251.17) (13,816.61)Depreciation 1,42,45.81 5,79.48 73.54 1,48,98.83
(15,560.07) (606.52) (42.54) (16,209.13)Noncashexpensesotherthandepreciation:ProvisionforLeaveencashment 77.33 (3.06) 12.32 86.59
(14.59) (16.08) (6.52) (37.19)Figuresinbracketsareinrespectofpreviousyear.
Note:
a) As per practice consistently followed, inter segment transfers for capital jobs recognised at cost and for other jobs at estimated
realisablevalue.
b) Businesssegmentisconsideredasprimarysegmentandthereisonlyonegeographicalsegment.
72
OCLINDIALIMITED ANNUALREPORT2013-14
28. OTHER NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONT…)
28.10RelatedPartyDisclosures(AS-18)
a) Relatedpartiesandtheirrelationship:
1) Keymanagement personnel: ShriMHDalmia, Shri R H Dalmia, Shri.Gaurav Dalmia (Executive Vice Chairman&MD),
ShriD.D.Atal(WholetimeDirector&CEO)
Relatives:ShriA.H.Dalmia,ShriV.H.Dalmia,ShriY.HDalmia,Smt.AbhaDalmia,Smt.PadmaDalmia,Smt.ShripriyaDalmia
Thirani,Smt.AnuradhaJatia,Smt.KanupriyaSomany,Smt.SharmilaDalmia,ShriPuneetYaduDalmia,Smt.KiranAtal
2) Subsidiary:OCLGlobalLimited,OdishaCementLimited(w.e.f12.07.2013)
3) StepdownSubsidiary:OCLChinaLimited
4) Enterprises overwhich keymanagement personnel are able to exercise significant influence : HariMachines Limited,
DalmiaBharatSevaTrust,DalmiaInstituteofScientific&Research(DISIR),DaltonInternationalLtd,DalmiaCement(Bharat)
Ltd.,LandmarkPropertyDevelopmentCo.Ltd,ShreeNatrajCeramic&Chemical IndustriesLtd,AstirPropertiesPvt.Ltd,
LandmarkLandholdingsPvt.Ltd,DalmiaBharatSugar&IndustriesLtd,DalmiaBharatLtd(FormalyDalmiaBharatEntrprises
Ltd),CalcomCementIndiaLtd,DebikaySystemsLimited,KiranResources(P)Ltd,DalmiaRefractories(Prop:DalmiaBharat
EnterprisesLtd.),DalmiaMagnesiteCorporation(Prop:DalmiaBharatSugar&IndustriesLtd.
b) Transactionswithaboveinordinarycourseofbusiness:
`Lakhs2013-14 2012-13
1) Transactionswithpartiesreferredin(1)above:(a) Remuneration/Pension 839.53 526.89(b) FixedDepositreceived 7.75(c) InterestExpense 1.98 2.41(d) Servicereceived 9.79 7.00(e) RentPaid 58.93 28.04(f) Payableattheyearend 33.90 22.36
2) Transactionswithpartiesreferredin(2)above:(a) Purchaseofgoodsandfixedassets 2,250.25 3,035.17(b) Servicerendered 153.98 196.94(c) GuaranteeProvided(USD8.39Lakhs)(PreviousyearUSD12.56Lakhs) 498.21 689.13(d) Receivableattheyearend 1.82 0 (e) Payableattheyearend 520.37 211
3) Transactionswithpartiesreferredin(4)above:(a) Purchaseofgoods 370.81 161.57(b) Purchaseoffixedassets 60.80 47.51(c) Saleofgoods 3,008.65 2,087.67(d) Servicerendered 108.03 26.93(e) Servicereceived 2,959.72 2,548.76(f) Intercorporatedepositgiven/(receivedback) - (1,000.00)(g) InterestIncome - 38.36(h) Advancegivenandreceived - 4.85(i) RentPaid 13.93 29.64(j) Receivableattheyearend 1,455.27 449.93(k) Payableattheyearend 851.13 2,400.59
73
Corporate Overview Management Reports Financial Statements
28. OTHER NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONT…)`Lakhs
2013-14 2012-13c) DisclosureofMaterialtransactionswithRelatedParties
Remuneration Syt.M.H.Dalmia 22.66 22.37Syt.R.H.Dalmia 278.11 149.63Shri.D.D.Atal 182.52 145.29Shri.Gaurav Dalmia 280.82 152.07Purchase of fixed assetsHariMachinesLtd. 2.41 47.51Purchase of goodsDalmiaCement(Bharat)Ltd. 1.30 11.32DalmiaBharatSugar&IndustriesLtd 33.66 45.97DalmiaBharatLtd 270.93 104.23Sale of goods and fixed assetsCalcomCementIndiaLimited 2,082.10 1,183.55DaltonInternational.Ltd 899.22 812.02HariMachinesLtd. 20.08 61.70Service rendered HariMachinesLtd. 5.76 4.23Service receivedHariMachinesLtd. 7.04 15.38DalmiaCement(Bharat)Ltd. 13.87 36.59DalmiaBharatLtd 2,681.66 2,282.10DISIR 119.70 116.74DaltonInternational.Ltd 111.89 76.17AstirPropertiesPvt.Ltd.(Rent) 13.93 28.04Inter corporate deposit given/(received back)CalcomCementIndiaLimited - (1,000.00)Interest IncomeCalcomCementIndiaLimited - 38.36Receivable at the year endDaltonInternational.Ltd 899.22 -HariMachinesLtd. 12.43 9.73CalcomCementIndiaLimited 542.49 387.81Payable at the year endDaltonInternational.Ltd 49.31 90.83DalmiaBharatLtd 697.82 2,282.10DalmiaCement(Bharat)Ltd. 16.68 17.25
28.11 Earning per share (EPS) AS - 20Profitaftertax(In`Lakhs) 9,787.63 15,638.59WeightedAverageNo.ofequitysharesof`2 each as on 31.03.2014
Basic&Diluted(NoinLakhs) 569.00 569.00EPS(`)
Basic&Diluted 17.20 27.48
74
OCLINDIALIMITED ANNUALREPORT2013-14
28. OTHER NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONT…)
% 2013-14 ` Lakhs
% 2012-13 ` Lakhs
28.12 Value of imported and indigenousi) RawMaterialsandSparepartsconsumed
Imported 11.87 4,887.43 19.74 8,819.74Others 88.13 36,284.82 80.26 35,866.77
ii) SparepartsImported 27.70 1,377.28 21.70 890.94Others 72.30 3,594.72 78.30 3,215.15
28.13 Imports (C.I.F. Value)i) RawMaterials 7,381.91 17,252.87ii) ComponentsandSpareparts 2,209.07 4,701.14iii) CapitalGoods 6,042.91 149.21
28.14 Expenditure in foreign currency:i) Royaltyandknowhowfees 7.23 2.64ii) InterestonForeignCurrencyLoans 306.13 -iii) Professional/Consultationfee 435.55 145.07iv) Commission 206.55 147.36v) HighSeaPurchase 19.93 51.58vi) OtherMatters 24.45 130.17
28.15 Earnings in Foreign Exchangei) Goodsexported(F.O.B.Value) 5,248.43 3,515.15ii) SaleofgoodsonHighSea 63.79 7.97iii) Service charges 146.13 130.37iv) Sundryreceipts 0.18 0.40v) UKVatrefund - 0.23
28.16 TheCompanyhasnotpaiddividendsinforeigncurrencyduringtheyearinrespectofsharesheldbynon-residents.Theamountpayabletonon-residentshareholdershasbeenpaidtotheirmandateebanks.Theamountofdividendsopaidtononresidentshareholders
duringtheyearisasfollows:
Particulars 2013-14 2012-13Interim
A) No.ofnon-residentshareholders 171 188 197B) No.ofequitysharesheldbythem 27,59,424 27,67,097 27,79,644C) Amountofdividendpaid(In`Lakhs) 41.39 69.17 55.81D) Yeartowhichthedividendrelates 2012-13 2012-13 2011-12
75
Corporate Overview Management Reports Financial Statements
28. OTHER NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONT…)
`Lakhs2013-14 2012-13
28.17 ForeignCurrencyExposure(AmountInLakhs)i) Hedged -ForwardContractsforimports(USD) USD 8.77 -
Euro 0.19 - TermLoan USD 79.32 23.68ii) NotHedged -Debtors USD 6.84 3.33
Euro 7.02 1.77GBP 10.12
Creditors USD 11.10 8.11 Euro 1.52 1.91JPY 9.01 6.67GBP 0.30 0.30
Cash&BankBalance USD(CYUSD
47.75)
- 0.01
GBP(CYGBP
249.20&PY
330)
- -
Euro(CY
151.66)
- 0.01
RMB 0.03 0.03JPY(PYJPY
220)
0.14 -
Kwacha 0.30 0.30 TermLoan USD 164.09 35.52 PCFCLOAN USD 4.27 5.13
EURO 8.64 3.43GBP 7.85 -
ForeignCurrencyLoanavailedunderBuyers’Credit USD - 203.63
76
OCLINDIALIMITED ANNUALREPORT2013-14
28.18 EmployeeBenefits-AS15(Revised)
a) TheCompanyhasdeterminedtheliabilityforEmployeebenefitsasatMarch31,2014inaccordancewithrevisedAccountingStandard15issuedbyICAI-Employeedefinedbenefits.
b) FollowinginformationarebasedonreportofActuary.
DefinedbenefitplansasatMarch31,2014
`Lakhs2013-14 2012-13
Gratuity (Funded)
Leave Encashment (Unfunded)
Gratuity(Funded)
LeaveEncashment (Unfunded)
A Break-upofexpenses1) Current Service Cost 174.19 246.15 131.03 199.132) Interest cost 119.63 21.05 91.71 18.503) Expectedreturnonplanassets 126.52 - 95.09 -4) NetActuarial(gain)/lossrecongisedduringtheyear 106.52 (19.60) 139.58 (60.83)5) Totalexpense 273.82 247.60 267.23 156.80
B Actual return on plan assets1) Expectedreturnonplanassets 126.52 95.092) Actuarialgain/(loss)onplanassets -22.84 21.28 3) Actual return on plan assets 103.68 116.37
C Reconciliationofobligationandfairvalueofassets1) Presentvalueoftheobligation 1,704.36 414.77 1,488.05 328.182) Fairvalueofplanassets 1,704.52 - 1,488.533) Fundedstatus[surplus/(deficit)] 0.16 (414.77) 0.48 (328.18)
D Change inpresent valueof theobligationduring the yearendedMarch31,20141) PresentvalueofobligationasatApril1,2013 1,488.05 328.18 1,188.28 291.002) Current Service Cost 174.19 246.15 131.03 199.133) Interest cost 119.63 21.05 91.71 18.494) Benefitspaid (161.19) (161.01) (83.83) (119.61)5) Actuarial(gain)/lossonplanassets 83.68 (19.60) 160.86 (60.83)6) PresentvalueofobligationasatMarch31,2014 1,704.36 414.77 1,488.05 328.18
2013-14 2012-13E ChangeinAssetsduringtheyearendedMarch31,2014
1) FairvalueofplanassetsasatApril1,2013 1,488.53 1,188.692) Expectedreturnonplanassets 126.52 95.093) Contributionmade 273.50 267.304) Benefitspaid (161.19) (83.83)5) Actuarialgain/(loss)onplanassets -22.84 21.28 6) FairvalueofplanassetsasatMarch31,2014 1,704.52 1,488.53
F Themajorcategoryofplanassetsasapercentageoftotalplan
Gratuity : 80%(PY76%)investedwithCentralGovt/Stategovt/StateGovt.Securities/PublicsectorbondsFixedDeposit
withPSUBanks
LeaveEncashment : Unfunded
28. OTHER NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONT…)
77
Corporate Overview Management Reports Financial Statements
`Lakhs2013-14 2012-13
G ActuarialAssumptions1) Discount rate 8.50% 8.00%2) Expectedrateofreturnonplanassets 8.50% 8.00%3) Mortality IALM (2006-08)
ULTIMATE
LIC1994-96
4) Salaryescalation 6.00% 5.00%
c) Gratuityisadministeredbyanapprovedgratuityfundtrust
d) Amountrecognisedasanexpenseinrespectofdefinedbenefitsplanasunder:1) ContributiontoGratuityFund 273.50 267.302) Gratuitypaiddirectly 39.97 21.813) Leaveencashment 247.60 156.79
561.07 445.90e) DefinedContributionplan:
ContributiontoDefinedContributionPlan,recognisedasexpensefortheyearasunder:1) Employer’scontributiontoGovernmentProvidentFund 718.13 612.512) Employer’scontributiontoSuperannuationFund 76.65 60.563) Farewellgifttoretiredemployees 1.28 2.124) Medicalinsurancepremiumtoretiredemployees 16.58 10.77
812.64 685.96
28.19 CapitalWork-In-ProgressatOCLBengalCementWorks/Medinipur(PYCaptivePowerPlant,Rajgangpur&OCLBengalCementWorks/Medinipur)includesthefollowingexpenses/income
Salary&Wages 111.48 199.89Rent 4.47 8.77Rates&Taxes 0.80Insurance 17.21 41.57Finance Charges 183.31 111.82Others 260.28 105.71
28.20 Research&DevelopmentExpenses
a) TheCompanyhasin-houseR&DCentre,approvedbytheDepartmentofScientificandIndustrialResearch(DISIR),MinistryofScientific&Technology,GovtofIndia.Thedetailsofrevenue/capitalexpenditureincurredbythesaidR&DCentreduringtheyearisasunder:-
1) RevenueExpenditurechargedtoProfit&LossAccounti) SalaryandotherBenefits 184.14 159.02ii) RawMaterial&Stores 69.62 24.99iii) Others 39.46 47.58 Total 293.22 231.59
2) CapitalexpenditureshownunderFixedassetsschedule 0.57 0.55Grand Total 293.79 232.14
78
OCLINDIALIMITED ANNUALREPORT2013-14
28.21 TheMinistryofCorporateAffairs,GovernmentofIndia,videGeneralCircularNo.2and3dated8thFebruary2011and21stFebruary2011respectivelyhasgrantedageneralexemptionfromcompliancewithsection212oftheCompaniesAct,1956,subjecttofulfillmentofconditionsstipulatedinthecircular.TheCompanyhassatisfiedtheconditionsstipulatedinthecircularandhenceisentitledtotheexemption.NecessaryinformationrelatingtothesubsidiarieshasbeenincludedintheConsolidatedFinancialStatements
28.22 Balanceconfirmationlettersweresentinrespectofaccountsshowingdebitorcreditbalances.BalanceConfirmationshavenotbeenreceived in fewcases. In theopinionof theManagement,adjustments, ifany, requiredonconfirmationandreconciliation isnotexpectedtobematerial.
28.21 Previousyearfigureshavebeenregroupedwherenecessarytocorrespondwithcurrentyearfigures.
forOCL INDIA LIMITEDOnbehalfoftheBoard
AnnexuretoourReportofDate Rachna Goria Gaurav Dalmia forV Sankar Aiyar & Co. (GMLegal&CompanySecretary) (ExecutiveViceChairman CharteredAccountants &ManagingDirector) FirmRegistrationNo:109208W
R. Raghuraman D N Singh D. D. Atal Place:NewDelhi Partner ExecutiveDirector(Finance) (WholeTimeDirector&CEO)Date:13.05.2014 MNo.81350 &ChiefFinancialOfficer
79
Corporate Overview Management Reports Financial Statements
Independent Auditors’ ReportTotheBoardofDirectorsofOCLIndiaLimited
We have audited the accompanying consolidated financial
statementsofOCLIndiaLimited(“theCompany”)anditssubsidiaries
andJointVenture,whichcompriseconsolidatedBalanceSheetasat
31stMarch2014andtheconsolidatedStatementofProfitandLoss
fortheyearthenended,andasummaryofsignificantaccounting
policiesandotherexplanatoryinformation.
MANAGEMENT’S RESPONSIBILITY FOR THE CONSOLIDATED FINANCIAL STATEMENTS
Management is responsible for the preparation of these
consolidatedfinancialstatementsthatgiveatrueandfairviewofthe
consolidatedfinancialposition,consolidatedfinancialperformance
and consolidated cash flows of the Company in accordancewith
accountingprinciplesgenerallyacceptedinIndia.Thisresponsibility
includes thedesign, implementationandmaintenanceof internal
control relevant to the preparation and presentation of the
consolidatedfinancialstatementsthatgiveatrueandfairviewand
arefreefrommaterialmisstatement,whetherduetofraudorerror.
AUDITOR’S RESPONSIBILITY
Our responsibility is toexpress anopinionon these consolidated
financialstatementsbasedonouraudit.Weconductedourauditin
accordancewiththeStandardsonAuditingissuedbytheInstitute
ofCharteredAccountantsofIndia.ThoseStandardsrequirethatwe
complywithethicalrequirementsandplanandperformtheaudit
to obtain reasonable assurance about whether the consolidated
financialstatementsarefreefrommaterialmisstatement.
Anauditinvolvesperformingprocedurestoobtainauditevidence
about the amounts and disclosures in the consolidated financial
statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material
misstatement of the consolidated financial statements, whether
duetofraudorerror.Inmakingthoseriskassessments,theauditor
considers internal control relevant to the Company’s preparation
and presentation of the consolidated financial statements that
giveatrueandfairviewinordertodesignauditproceduresthat
are appropriate in the circumstances, but not for thepurposeof
expressinganopinionontheeffectivenessoftheentity’s internal
control. An audit also includes evaluating the appropriateness of
accountingpoliciesusedandthereasonablenessoftheaccounting
estimatesmadebymanagement,aswellasevaluatingtheoverall
presentationoftheconsolidatedfinancialstatements.
Webelievethattheauditevidencewehaveobtainedissufficient
andappropriatetoprovideabasisforourauditopinion.
OPINION
In our opinion and to the best of our information and according
totheexplanationsgiventousandbasedontheconsiderationof
thereportsoftheotherauditorsonthefinancialstatementsofthe
subsidiariesasnotedbelow,theconsolidatedfinancialstatements
giveatrueandfairviewinconformitywiththeaccountingprinciples
generallyacceptedinIndia:
(a) inthecaseoftheconsolidatedBalanceSheet,ofthestateof
affairsoftheCompanyasatMarch31,2014;and
(b) inthecaseoftheconsolidatedStatementofProfitandLoss,of
theprofitfortheyearendedonthatdate;
OTHER MATTER
Wedidnot audit thefinancial statementsof all subsidiaries, and
Joint Venture whose financial statements reflect the total assets
of `17,734.29 lakhs as at March 31, 2014, total revenues of
`22,847.41 lakhs for the year then ended. These financial
statementshavebeenaudited/unauditedbyotherauditorswhose
reports have been furnished to us by theManagement, and our
opinion is based solelyon the reportsof theother auditors.Our
opinionisnotqualifiedinrespectofthismatter.
For V. Sankar Aiyar & Co.
Chartered Accountants
FirmRegistrationNumber:109208W
(R.Raghuraman)
Place:NewDelhi Partner
Dated:13.05.2014 Membershipno.81350
80
OCLINDIALIMITED ANNUALREPORT2013-14
Consolidated Balance SheetAsat31stMarch,2014
` Lakhs Note no. 2013-14 2012-13
I. EqUITY & LIABILITIESShareholders' Funds
Share Capital 2 1,138.50 1,138.50Reserves and Surplus 3 1,13,801.54 1,05,729.74
1,14,940.04 1,06,868.24Minority Interest 346.35 325.44 Non Current Liabilities
Long-termborrowings 4 53,916.59 44,612.55Deferredtaxliabilities(Net) 5 13,640.96 12,952.24Otherlongtermliabilities 6 3,280.06 3,242.27Long-termprovisions - -
70,837.61 60,807.06Current Liabilities
Short-termborrowings 7 10,551.28 25,355.02Tradepayables 8 22,323.10 17,306.51Othercurrentliabilities 9 36,260.29 31,234.30Short-termprovisions 10 3,104.45 1,348.56
72,239.12 75,244.39Total 2,58,363.12 2,43,245.13
II. ASSETSNon-current Assets
Fixedassets 11Tangibleassets 1,27,875.12 1,09,490.93Intangibleassets 2,849.72 2,799.90Capitalwork-in-progress 15,883.12 14,183.13Intangibleassetsunderdevelopment - 31.06
MineDevelopment&Pre-OperativeExpense 12 63.02 66.51 Non-currentinvestments 13 385.34 385.34 Long-termloansandadvances 14 1,262.81 3,998.81Othernon-currentassets 15 27.93 27.02
1,48,347.06 1,30,982.70Current Assets
Current investments 16 24,513.13 26,518.72Inventories 17 35,054.65 37,390.24Tradereceivables 18 26,446.30 20,672.35Cash&bankbalances 19 9,210.47 14,524.21Short-termloansandadvances 14 14,177.63 12,721.65Other current assets 20 613.88 435.26
1,10,016.06 1,12,262.43Total 2,58,363.12 2,43,245.13
SignificantAccountingPoliciesOthernotesformingpartofthefinancialstatementsTheaccompanyingnotesformanintegralpartofthefinancialstatements
129
forOCL INDIA LIMITEDOnbehalfoftheBoard
AnnexuretoourReportofDate Rachna Goria Gaurav Dalmia forV Sankar Aiyar & Co. (GMLegal&CompanySecretary) (ExecutiveViceChairman CharteredAccountants &ManagingDirector) FirmRegistrationNo:109208W
R. Raghuraman D N Singh D. D. Atal Place:NewDelhi Partner ExecutiveDirector(Finance) (WholeTimeDirector&CEO)Date:13.05.2014 MNo.81350 &ChiefFinancialOfficer
81
Corporate Overview Management Reports Financial Statements
Consolidated Statement of Profit and Loss For the year ended 31st March 2014
` Lakhs Note no. 2013-14 2012-13
INCOMERevenuefromoperations 21 1,94,353.26 1,84,864.06Other income 22 3,937.97 2,537.70
1,98,291.23 1,87,401.77EXPENDITURE
Costofmaterialsconsumed 23 47,927.86 46,022.28Purchasesofstockintrade 24 2,952.63 8,122.94Freight,clearing&handlingonownclinker 4,076.78 2,658.00Changesininventoriesoffinishedgoods&workinprogress&StockinTrade 25 2,706.48 (9,897.22)Employeebenefitsexpense 26 11,449.86 9,706.61Powerandfuel 28,856.85 31,831.50Finance costs 27 7,106.28 7,767.56Depreciation&amortizationexpense 13,133.01 13,945.03Otherexpenses 28 65,768.93 54,292.92
1,83,978.68 1,64,449.62PROFIT BEFORE TAXATION 14,312.55 22,952.15TaxExpense-CurrentTax 3,077.05 6,100.00
-MatCredit (208.02) --Deferred 688.72 905.44
PROFIT/ (LOSS) FOR THE YEAR AFTER TAX (BEFORE ADJUSTMENT FOR MINORITY INTEREST)
10,754.80 15,946.71
Less: Share of Profit/(Loss) transferred to / (from) Minority Interest 39.38 12.52
PROFIT FOR THE YEAR AFTER (AFTER ADJUSTMENT FOR MINORITY INTEREST) 10,715.42 15,934.19EARNINGPEREQUITYSHARE(FaceValueof`2/-each)1)Basic(`) 18.83 28.00 2)Diluted(`) 18.83 28.00 SignificantAccountingPoliciesOthernotesformingpartofthefinancialstatementsTheaccompanyingnotesformanintegralpartofthefinancialstatements
129
forOCL INDIA LIMITEDOnbehalfoftheBoard
AnnexuretoourReportofDate Rachna Goria Gaurav Dalmia forV Sankar Aiyar & Co. (GMLegal&CompanySecretary) (ExecutiveViceChairman CharteredAccountants &ManagingDirector) FirmRegistrationNo:109208W
R. Raghuraman D N Singh D. D. Atal Place:NewDelhi Partner ExecutiveDirector(Finance) (WholeTimeDirector&CEO)Date:13.05.2014 MNo.81350 &ChiefFinancialOfficer
82
OCLINDIALIMITED ANNUALREPORT2013-14
Consolidated Cash FlowFortheyearended31stMarch,2014
` Lakhs2013-14 2012-13
A. CASHFLOW FROM OPERATING ACTIVITIESProfitbeforetaxfromcontinuingoperations 14,312.55 22,644.03Adjustmentfor:
Depreciation&AmortizationExpense 15,306.40 16,157.39Loss/(Profit)onsaleoffixedassets 1.79 10.89 EffectofExchangeRatedifference 1,006.53 254.00 ProfitonsaleofInvestment (681.20) (1.58)Interestexpense 6,783.70 7,296.31Interest on Investment (59.36) (70.03)UnrealizedforeignExchangeonconsolidationnet
Gain/Loss
7.10 -
Dividend on Investment (871.80) (1,283.33) 21,493.16 22,363.65
Operatingprofitbeforeworkingcapitalchanges 35,805.71 45,007.68AdjustmentsforWorkingCapitalchanges
Increase/(decrease)intradepayables 5,016.59 5,055.04Increase/(decrease)inshorttermprovisions 91.62 39.65 Increase/(decrease)inothercurrentliabilities 4,836.58 4,947.40Increase/(decrease)inotherlongtermliabilities 37.79 1,196.66Decrease/(increase)intradereceivables (5,773.95) (5,426.25)Decrease/(increase)ininventories 2,335.59 (9,229.08)Decrease/(increase)inlongtermloansandadvances 19.14 (63.76)Decrease/(increase)inshorttermloansandadvances (1,931.44) (1,623.75)Decrease/(increase)inothercurrentassets (178.62) 321.59 Decrease/(increase)inothernoncurrentassets (0.91) 18.97
4,452.40 (4,763.53)CashgeneratedfromOperations 40,258.11 40,244.15
TaxPaid(Net) (2,393.57) (6,688.07)NetCashfromOperatingActivities 37,864.54 33,556.08
B. CASH FLOW FROM INVESTING ACTIVITIESPurchaseofFixedAssets (32,809.22) (17,143.19)Sale/writeoffofFixedAssets 112.06 64.50 Interest receipt on investment 59.36 70.03 ProfitonsaleofInvestment 681.20 1.58 PurchaseofnoncurrentInvestment(Net) (4,865.69)PurchaseofcurrentInvestment(Net) 2,005.59 (9,795.92)Loansgiven - -Loansgivenreceivedback - 1,000.00Dividend on Investments 871.80 1,283.33NetCashgenerated/(-)usedinInvestingActivities (29,079.21) (29,385.36)
83
Corporate Overview Management Reports Financial Statements
Consolidated Cash FlowFortheyearended31stMarch,2014
` Lakhs2013-14 2012-13
C. CASHFLOW FROM FINANCING ACTIVITIESIncrease/(decrease)inlongtermborrowings 9,493.45 (10,165.92)Increase/(decrease)inshorttermborrowings (14,803.74) 16,687.44EffectofExchangeRatedifference (1,006.53) (254.00)IPRBenefitReceived - 576.84 DividendPaid (853.50) (1,138.01)TaxesonDividendPaid (145.05) (184.61)Interim Dividend paid - (1,422.51)Taxoninterimdividendpaid - (230.77)Interestexpense (6,783.70) (7,296.31)NetCashfromFinancingActivities (14,099.07) (3,427.85)NetchangesinCashandbankbalances (5,313.74) 742.87 NetIncrease/(-)DecreaseinCashandBankbalances
Balanceattheendoftheyear 9,210.47 14,024.58(Referfootnoteinnoteno19)Balanceatthebeginningoftheyear 14,524.21 13,281.71
(5,313.74) 742.87
forOCL INDIA LIMITEDOnbehalfoftheBoard
AnnexuretoourReportofDate Rachna Goria Gaurav Dalmia forV Sankar Aiyar & Co. (GMLegal&CompanySecretary) (ExecutiveViceChairman CharteredAccountants &ManagingDirector) FirmRegistrationNo:109208W
R. Raghuraman D N Singh D. D. Atal Place:NewDelhi Partner ExecutiveDirector(Finance) (WholeTimeDirector&CEO)Date:13.05.2014 MNo.81350 &ChiefFinancialOfficer
84
OCLINDIALIMITED ANNUALREPORT2013-14
Notes to the Consolidated Financial StatementsFortheyearended31stMarch,2014
1 SIGNIFICANT ACCOUNTING POLICIES
1.1 Principles of Consolidation
The Consolidated Financial Statement relate to OCL IndiaLimited(thecompany)anditssubsidiarycompaniesandjointventure. The consolidated financial statements have beenpreparedonthefollowingbasis:
i) The Consolidated Financial Statements have beenpreparedincompliancewiththeAccountingStandard21- “Consolidated Financial Statements”, and ‘AccountingStandard27 - “Financial Reportingof Interests in JointVentures” notified under Companies (AccountingStandard)Rules,2006.Thesefinancialstatementsrelateto OCL India Limited and its subsidiary companies (2)incorporated in foreign countries andone in India&aJoint Venture in India. The Companies considered forconsolidatedfinancialstatementsare:-
a) OCLGLOBALLIMITED(IncorporatedinMauritius)
b) OCL CHINA LIMITED (Step Down Subsidiary -IncorporatedinChina)
c) OdishaCementLtd.(IncorporatedinIndia)
d) Radhikapur (West) Coal Mining Pvt Limited -Interests (14.696%) out of which only 7.029%is permanent in nature which is considered in consolidatedfinancialstatementsandforbalanceshare (7.667%)of investment isaccountedasperAS-13“AccountingforInvestments”
ii) The financial statements of the Company and itssubsidiary companies are combined on a line-by-line basis by adding together the book values of likeitems of assets, liabilities, income and expenses, aftereliminating all significant intra-group balances andintra-group transactions and also unrealized profits orlossesinaccordancewithAccountingStandard(AS)21-“ConsolidatedFinancialStatements”
iii) Interest in Joint Ventures have been accounted byusing the proportionate consolidation method as perAccountingStandard27-“FinancialReportingofInterestin Joint Ventures”. Intra-group balances, transactionsandunrealizedprofitsorlosseshavebeeneliminatedtotheextentoftheCompany’sproportionateshare.
iv) Thedifferencebetweenthecosttothecompanyof itsinvestment in the subsidiaries and Joint Venture,overitsproportionateshareinthenetassetsoftheinvestee
company as at the date of acquisition of shares isrecognised in the financial statements as Goodwill orCapitalReserveasthecasemaybe.
v) Minority Interest’s share of net profit of consolidatedsubsidiaries for the year has been identified andadjusted against the income of the group in order toarriveatthenetincomeattributabletoshareholdersoftheCompany.MinorityInterest’sshareofnetassetsofconsolidatedsubsidiaries is identifiedandpresented intheconsolidatedbalancesheetseparatefromliabilitiesandtheequityoftheCompany’sshareholders.
vi) Asfaraspossible,theconsolidatedfinancialstatementsarepreparedusinguniformaccountingpolicies for liketransactions and other events in similar circumstancesandarepresentedinthesamemannerastheCompany’sstandalone financial statements. Differences inacccountingpolicieshavebeendisclosedseperately.
vii) Incaseofforeignsubsidiaries,beingnon-integralforeignoperations,revenueitemsareconsolidatedattheaveragerateprevailingduringtheyear.Allassetsandliablitiesareconvertedattherateprevailingattheendoftheyear.Anyexchangedifferencearisingonconsolidationisrecognisedintheexchangefluctuationreserve.
viii) Thefinancial statementsof thegroupentitiesused forthepurposeofconsolidationaredrawnuptothesamereportingdateasthatofthecompanyi.e. Year endedMarch31,2014.
1.2 Fixed Assets including intangible Assets
Fixedassetsarestatedatcostlessaccumulateddepreciation.Costcomprisesthepurchasepriceandanyattributablecostofbringingthe asset to its working condition for its intended use. Land,Buildings,PlantandMachineryrelatingtoCementandRefractoryWorks acquired/installed upto 31.12.81 were revalued as at31.12.85.Allotherfixedassetsareshownatcost(netofcenvat).Borrowingcostsattributabletotheacquisitionofqualifyingassetsandallsignificantcostsincidentaltotheacquisitionofassetsarecapitalised.Intangibleassetsarerecordedatconsiderationpaidforacquisitionofsuchassetsandarecarriedatcostlessaccumulatedamortisation.CapitalWork inProgress&IntangilbeAssetsunderdevelopment are shown at cost.
1.3 Depreciation and Amortisation
i) Depreciation on Fixed Assets ( except to the extentstated in para ( ii ) to ( iii ) below ) is provided using
85
Corporate Overview Management Reports Financial Statements
theReducingBalanceMethodandhasbeencalculatedinthemannerandattheratesspecifiedinScheduleXIVtotheCompaniesAct,1956.
ii) DepreciationonPlantandMachineryaddedinCement&Refractoryafter31.12.81 isprovidedonstraight linemethod and depreciation on all other assets includingKapilasCementWorks,ClinkerisationUnitatRajgangpur(Line-II),CaptivePowerPlantandBengalCementWorksisprovidedonreducingbalancemethod.
iii) Inrespectofastepdownsubsidiarycompany(OCLChinaLimited),depreciationisprovidedonstraightlinemethodaspertheexpectedusefullivesandexpected‘netsalvagevalue (original valueor5%ofBookValue)of theassetsestimatedbythemanagement,whichareasfollows:
Name of the Assets
Depre-ciation
Life
Residual Rate
Annual Depreciation
Rate estimated by
the management
Rates as per
Schedule XIV to the
Companies Act, 1956
HouseandBuilding
20 5% 4.75% 1.63%-3.34%
Machineryand Mechanic Equipment
10 5% 9% 5.28%
MeansofTransportation
4 5% 23.75% 9.75%
Electronic Equipment
3 5% 31.67% 4.75%-5.28%
iv) Anintangibleassetsismeasuredatcostandamortisedsoastoreflectthepatterninwhichtheassetseconomicbenefitareconsumed.Theusefullifehasbeenestimatedas3-5yearsincaseofcomputersoftware.
v) InrespectofStepdownsubsidiarycompany(OCLChinaLimited) the expected life of the intangibles has beenestimatedbythemanagementastenyears.
1.4 Revenue Recognition and Accounting for Sales & Services
Revenue from domestic sale of goods is recognised whensignificantrisksandrewardsaretransferredtothecustomers.Export Sales are accounted for on the basis of date of Billof Lading. Sales are net of trade discount and sales tax butinclusiveofexciseduty.Bonusorpenaltylinkedtooperatingefficiency of products, where applicable, is accounted foruponcrystalization. Income fromservicesareaccounted forwhen becomes due. Interest income is recognised on time
proportionatebasis.Dividendincomeisaccountedfor,whentherighttoreceivethesameisestablished.
IncaseofStepdownSubsidiaryCompany(OCLChinaLimited)incomefromservicesisrecognisedintheaccountingperiodinwhich it is received.
1.5 Pre-Operative Expenses (Mine Development Expenses & Other Pre-Operative Expenses.)
The Pre-Operative Expenses relate to the Joint VentureCompany, Radhikapur (West) Coal Mining Pvt. Ltd. The JVCompany and the venturers have been allotted coal blockby GOI, Ministry of Coal. All the expenditure incurred tillcommencement of commercial production is classified as‘Mines Development & Pre-Operative Expenses’ pendingcapitalizationunderpre-operativeexpenses.
i) MineDevelopmentExpenses–Direct:Thecostrelatabletoacquisitionofexploration rightandBankGuaranteeexpensesforGovernmentroyaltyassurancearegroupedunder this head.
ii) Mine Development Expenses –Direct – InterestReceipts:TheCompanywascalleduponbytheBankertomakemarginmoneyintheformofFixedDepositforissueofBankGuaranteeonbehalf of theCompany toGovernmentofIndiaforassuranceofroyaltypaymentofoneyearproductionuponcommencementofoperation.Theinterestreceiptonsuchfixeddepositisconsideredasreductionfromcostofbankguaranteecharges,underminesdevelopmentexpenses–direct.
iii) Mine Development Expenses –Indirect andAdministrative: The expenses are capitalized as theoperations are yet to commence. The interest receipton deposit out of spare funds is reduced from theadministrativeexpenses.
iv) Thecompanyisfollowing“FullCostmethod”,wherebyallacquisition,explorationanddevelopmental costarekept aswork inprogress.Upon start of operation, thedepletion/depreciationmethod/modewillbedecided,basedonreservequantityofcoalandotherfactors.
1.6 Other significant accounting policies
Theseare setoutunder “SignificantAccountingPolicies” asgiveninthecompany’sseparatefinancialstatements.
86
OCLINDIALIMITED ANNUALREPORT2013-14
` Lakhs2013-14 2012-13
2. SHARE CAPITALAuthorised Shares
1,00,000Sharesof`100 each 100.00 100.00 7,00,00,000Sharesof`2 each 1,400.00 1,400.00
1,500.00 1,500.00Issued Shares
6,36,31,805OrdinarySharesof`2 each 1,272.64 1,272.64Subscribed & paid up shares
5,69,00,220OrdinarySharesof`2each,fullypaidup 1,138.00 1,138.00Add:SharesForfeitedAccount 0.50 0.50 Total Subscribed & Paid up Share Capital 1,138.50 1,138.50
a) Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period
Particulars 31st March 2014 31st March 2013 No of Shares
(in lakhs)
(in lakhs `) NoofShares
(inlakhs)
(inlakhs`)
OrdinarySharesoutstandingatthebeginningoftheyear 569.00 1,138.00 569.00 1,138.00OrdinarySharesissuedduringtheyear - - - -OrdinarySharesboughtbackduringtheyear - - - -OrdinarySharesoutstandingattheendoftheyear 569.00 1,138.00 569.00 1,138.00
b) Terms/ rights attached to ordinary shares
TheCompanyhasissuedonlyoneclassofordinaryshareshavingaparvalueof`2/-pershare. Eachholderofordinarysharesis
entitledtoonevotepershare.
Duringtheyearended31stMarch2014,theamountofdividendpersharerecognisedfordistributiontoordinaryshareholders is
`4/-(Previousyear:InterimDividendRS.2.50/-andFinaldividend`1.50/-pershare).
Ineventofliquidationofthecompany,theholdersofordinaryshareswillbeentitledtoreceiveremainingassetsofthecompany,after
distributionofallpreferentialamounts.
Thedistributionwillbeinproportiontothenumberofordinarysharesheldbytheshareholders.
c) Details of shareholders holding more than 5% shares in the Company
S. No. NameoftheShareholders As at 31 March 2014 As at 31 March 2013 No. of Shares
held (In Lakhs)
% of Holding No.ofShares
held(InLakhs)
%ofHolding
1 MriduHariDalmia(C/oMHDalmiaParivarTrust) 127.78 22.46% 122.56 21.54%2 DalmiaCement(Bharat)Limited 273.12 48.00% 258.15 45.37%3 DhartiInvestmentsandHoldingsLimited 34.77 6.11% 35.06 6.16%
d) Aggregate number of bonus shares issued and shares bought back during the period of five years immediately preceding the
reporting date: Nil.
Inrespectofsharesissuedforconsiderationotherthancash,1,23,52,500ordinarysharesof`2/-eachfullypaidupwherealloted
duringtheyear2007-08totheshareholdersoferstwhileDalmiaCement(Meghalaya)Limitedpursuanttoaschemeofarrangement
formerger.
87
Corporate Overview Management Reports Financial Statements
` Lakhs2013-14 2012-13
3. RESERVES AND SURPLUS
Capital ReserveOpeningBalance 728.65 153.06 Add:IPRBenefitreceivedduringtheyear (6.37) 575.45 Add:MinorityShareofLoss 0.64 0.14 Closing Balance 722.92 728.65
Securities Premium ReserveOpeningBalance 19,600.00 19,600.00
Foreign Currency Translation ReserveOpeningBalance 1,023.01 Add:Arisedduringtheyear 7.10 -Add:MinorityshareofInterest 17.83 1,023.01Closing Balance 1,047.94 1,023.01Debenture Redemption ReserveOpeningBalance 1,526.35 1,402.68Add:TransferfromSurplusbalance - 123.67 Closing Balance 1,526.35 1,526.35General ReserveOpeningBalance 60,485.34 48,485.34Add:TransferfromSurplusbalance 12,011.94 12,000.00Closing Balance 72,497.28 60,485.34Surplus/ (Deficit)OpeningBalance 22,366.39 21,207.70Add:ProfitfortheyearaspertheStatementofProfitandLoss 10,754.80 15,946.71Less:Appropriations
ProposedDividend(`4/-PersharePY`1.50/-) 2,276.01 853.50 Dividenddistributiontaxonproposeddividend 386.81 145.05 InterimDividend(PYpershare`2.50/-) - 1,422.51Dividenddistributiontaxoninterimdividend - 230.77 TransfertoDebentureRedemptionReserve - 123.67 TransfertoGeneralReserve 12,011.94 12,000.00MinorityShareofProfit 39.38 12.52 TotalAppropriations 14,714.14 14,788.02
Closing Balance 18,407.05 22,366.39Total 1,13,801.54 1,05,729.74
Non Current Current Non Current Current2013-14 2012-13
4. LONG TERM BORROWINGSSecured
1 Redeemable Non-Convertible Debentures - - 1,100.00 [email protected]%(Redeemableduring2014-15to2016-17)[email protected]% 4,800.00 1,200.00 6,000.00 -(Redeemableduring2014-15to2016-17)
4,800.00 1,200.00 7,100.00 -Less:Shownunderothercurrentliabilites - - - -
4,800.00 1,200.00 7,100.00 -
Thedebenturesare securedbywayoffirstparipassu chargeoverfixedassets (presentand future)ofCementDivisionof the
CompanyexceptthosetoSyndicateBankareadditionalysecuredbywayoffirstpari-passuchargeonFixedAssetsofRefractory
DivisionoftheCompany.
88
OCLINDIALIMITED ANNUALREPORT2013-14
` Lakhs Non Current Current Non Current Current
2013-14 2012-132 Term Loans
From BanksStateBankofIndia# 3,291.49 964.00 4,255.49 964.00 (Repayablein32quarterlyinstallmentsfromDec,10)StateBankofIndia# 4,973.07 1,420.00 6,393.08 1,420.00(Repayablein24quarterlyinstallmentsfromDec,12)StateBankofIndia# 5,000.00 - 1,300.00 -(Repayablein31quarterlyinstallmentsfromJune,15)ExportImportBankofIndia# 1,191.30 680.74 1,872.04 680.74 (Repayablein27quarterlyinstallmentsfromJune,10)ExportImportBankofIndia(ForeignCurrencyLoan)# 1,670.98 954.84 2,382.29 866.29 (Repayablein27quarterlyinstallmentsfromJune,10)AxisBankLimited# - 1,500.00 1,500.00 2,000.00(Repayablein20quarterlyinstallmentsfromMar,10) - -UnitedBankofIndia$ 1,664.80 833.32 2,500.04 833.98 (Repayablein24quarterlyinstallmentsfromApr,11) - -UnitedBankofIndia$ 4,846.65 909.39 6,062.45 1,212.52(Repayablein32quarterlyinstallmentsfromApr,11)UnitedBankofIndia$(Repayablein26quarterlyinstallmentsfromSep,15) 4,528.84 - - -AxisBankLimited#(Repayablein30quarterlyinstallmentsfromMar,19) 2,500.00 - - -StateBankofIndia,SanghaiBranch* - - - 642.78 (YearlyMaturityandRenewable)BankofBaroda,DubaiBranch* 348.94 524.04 804.61 319.80 (RepayableinquarterlyinstalmentstillOctober2016)StateBankofIndia,MauritiusBranch^ - 604.90 548.80 -(RepaybleinTwoinstalmentsof5LacsUSDeachfromSept14)StateBankofIndia,MauritiusBranch^ - - - 140.33 (RepayableinquarterlyinstalmentsfromApril2009)
From OthersInternationalFinanceCorporation@ 6,313.86 3,156.92 9,470.78 3,156.92(Repayablein13halfyearlyinstallmentsfromOct,10)InternationalFinanceCorporation@ 12,098.00 - - -(Repayablein14halfyearlyinstallmentsfromOct,10)
48,427.93 11,548.15 37,089.58 12,237.36Less:Shownunderothercurrentliabilites - (11,548.15) - (12,237.36)
(Refernoteno9) 48,427.93 - 37,089.58 -
#SecuredbyFirstparipassuchargebywayofmortgageandhypothecationoverallimmovablepropertiesandmoveablefixedassets
ofCementDivision,(bothpresentandfuture)andfurthersecuredbysecondparipasuchargeonallcurrentassetsoftheCompany.
$SecuredbyFirstchargeonfixedassetsoftheCementDivisionofCompany,bothpresentandfuturetobesharedparipassuwith
theprovidersoftheotherdebtandexistinglenders,furthersecuredbywayofsecondparipasuchargeoncurrentassetsofCement
Division.
@Securedby First rankingmortgage andHypothecationon all immovable&movable, present& future assets related to the
CementDivision(excludingCurrentAssets)tobesharedparipassuwithotherlendersinrespectofotherdebtsandexistingsecured
lenderstotheCementDivisioninrespectoftheexistingdebt.
*SecuredbytheguaranteegivenbytheholdingcompanyOCLINDIALIMITED.
^SecuredbythesubservientchargeonthemovableassetsofholdingcompanyOCLINDIALIMITED.
89
Corporate Overview Management Reports Financial Statements
` Lakhs Non Current Current Non Current Current
2013-14 2012-13UnsecuredPublicDeposits
-RelatedParties(Refernoteno29.9(b1f)) - - - 15.00 -Others 688.66 114.84
From Others - - 422.97 421.22 688.66 114.84 422.97 436.22
Less:Shownunderothercurrentliabilites - (114.84) - (436.22)(Refernoteno9) 688.66 - 422.97 -
#(Repayablein2014-15&2015-16)Grand Total 53,916.59 12,862.99 44,612.55 12,673.58Less:ShownunderothercurrentLiabilities - (11,662.99) (12,673.58)
53,916.59 1,200.00 44,612.55 -
2013-14 2012-135. DEFERRED TAX LIABILITIES (NET)
Liabilities:Depreciation 15,442.01 14,173.06Exchangegainonloanforcapitalexpenditure - -ExcessExpenseAllowableincomputingtaxableincomeonaccrualbasis - 62.28
15,442.01 14,235.34Assets:
DifferenceofvalueofStocku/s145AoftheIncomeTaxAct,1961 322.59 342.73 Expensesallowableincomputingtaxableincomeonpaymentbasis 591.62 250.00 Exchangelossonloanforcapitalexpenditure 288.73 219.79 UnabsorbeddepreciationunderIncomeTaxAct,1961 0.08 -ProvisionforDoubtfulDebts&obsolescence 598.03 408.30
1,801.05 1,220.82NetLiability 13,640.96 13,014.52
6. OTHER LONG TERM LIABILITIESTradePayables(Duetomicro&smallenterprises-Nil) 3,225.44 3,160.25Accruedinterestonpublicdeposits 54.62 19.74
3,280.06 3,179.99
7. SHORT TERMS BORROWINGSSecureda) Loansrepayableondemand
CashCreditsfromBanks* 9,847.95 13,751.13b) FromRelatedParty - -c) OtherLoansandadvances
Buyer'sCreditfromBanks$ - 11,175.46UnsecuredPublicDeposits
-RelatedParties 26.75 --OtherthanRelatedParties 676.58 428.43
10,551.28 25,355.02*Workingcapitalfacilities(fundbased&nonfundbasedlimits)aresecuredbyfirstparipassuchargeoverstocks,stores,rawmaterials,inventories,workinprogress,finishedgoodsandalsobookdebts,billsandmoneysreceivableoftheCompanybywayofhypothecation.ThesefacilitiesarefurthersecuredbysecondchargeoverthefixedassetsoftheCementDivisionoftheCompany.LimitatSBI,Hongkongissecuredbyguranteegivenbyholdingcompany.$Buyerscreditissecuredbysubservientchargesonmoveablefixedassetsofcementdivisionofthecompany.
90
OCLINDIALIMITED ANNUALREPORT2013-14
`Lakhs2013-14 2012-13
8. TRADE PAYABLESMicro&SmallEnterprises 28.64 94.88 Others 22,294.46 17,211.63
22,323.10 17,306.51
Disclosure as per Section 22 of “The Micro, Small and Medium Enterprises Development Act 2006”:
Particulars As at 31st March,
2014
As at 31stMarch,
2013 (i) theprincipalamountandtheinterestduethereonremainingunpaidtoanysupplier
-PrincipalAmount - --Interestthereon - -
(ii) theamountofinterestpaidbythebuyerintermsofSection16,alongwiththeamountsofthepaymentmadetothesupplierbeyondtheappointedday
- 0.20
(iii) theamountofinterestdueandpayablefortheperiod(wheretheprincipalhasbeenpaidbutinterestundertheMSMEDAct,2006notpaid)
- 0.01
(iv) Theamountofinterestaccruedandremainingunpaid - 0.25 (v) Theamountoffurtherinterestdueandpayable - 0.06
`Lakhs2013-14 2012-13
9. OTHER CURRENT LIABILITIESCurrentmaturitiesoflong-termdebts(Refernoteno4) 12,862.99 12,673.58Interestaccruedbutnotdueonborrowings 900.24 1,048.17Unpaiddividends# 96.54 97.99 Unpaidmatureddepositsandinterestaccruedthereon# 14.51 18.78 On Capital Account 3,951.22 3,376.43Creditorsforexpenses - SecurityDeposits 10,951.87 8,193.22Advancepaymentsfromcustomers 4,015.14 3,486.08Otherpayables
ProcessingFees/OtherLiabilities 39.77 136.96 Statutorydues 3,330.51 2,112.10Directors commission 37.40 37.40 Recoveriesfromemployeesonbehalfofothers 60.10 53.59
36,260.29 31,234.30#Therearenoamountdue&outstandingtobecreditedtotheInvestorEducation&ProtectionFund
10. SHORT TERM PROVISIONSEmployeebenefits
Leaveencashment(unfunded) 414.77 328.18 Superannuation(funded) 18.66 18.86
OthersMarktomarketonderivativecontract - -Exchangefluctuation-forwardcontracts 8.20 1.44 Proposeddividend 2,276.01 853.50 Taxonproposeddividend 386.81 145.05 Others - 1.53
3,104.45 1,348.56
91
Corporate Overview Management Reports Financial Statements11
. FI
XED
ASS
ETS
(CO
NSO
LID
ATED
)`Lakh
sFixedAssets
GrossBlock
Dep
reciati
on/Amortizati
onNetBlock
Ope
ning
Ba
lance
Assetsof
Subsidiarie
s&Jo
int
Vent
ure
Entiti
es
Add
ition
sDispo
sals/
Adjustments
As
at
31.0
3.20
14O
peni
ng
Balance
Accu
mul
ated
Dep
reciati
onof
Subsidiarie
s&
Join
t Ven
ture
Entiti
es
For
the
year
On
disp
osal
sU
p to
31
.03.
2014
As
at
31.0
3.20
14O
peni
ng
Balance
aTa
ngib
le A
sset
sLand
621
.81
- 3
1.93
-
653
.74
--
--
- 6
53.7
4 6
21.8
1 Land
und
erlease
1,792
.26
1,073
.73
125
.45
- 2
,991
.44
43.
11
61.
32
46.
54
- 1
50.9
7 2
,840
.47
2,761
.56
Build
ings
10,08
1.86
1,668
.58
2,254
.86
23.
95
13,
981.
35
3,862
.35
245
.34
555
.34
18.
44
4,6
44.5
9 9
,336
.76
7,453
.72
Plan
tand
Equ
ipmen
t1,74,098.37
3,781
.02
29,887
.81
77.
57
2,07
,689
.63
83,66
5.19
8
00.8
0 13,25
6.24
7
3.40
9
7,64
8.83
1
,10,
040.
8092,89
8.38
Plan
t&Equ
ipmen
tund
er
leas
e 5
74.0
6 -
--
574
.06
417
.37
- 2
7.27
3
.60
441
.04
133
.02
156
.69
Furnitu
reand
Fixtures
531
.51
1.4
1 1
68.0
3 1
.21
699
.74
288
.71
0.6
5 7
5.35
1
.21
363
.50
336
.24
243
.56
Vehi
cles
5,039
.82
91.
89
124
.13
16.
89
5,2
38.9
5 3,049
.57
50.
98
625
.03
14.
82
3,7
10.7
6 1
,528
.19
2,057
.28
Officeequ
ipmen
ts1,965
.91
68.
73
343
.47
29.
50
2,3
48.6
1 1,261
.55
28.
44
293
.57
42.
73
1,5
40.8
3 8
07.7
8 7
43.0
6 Ra
ilwayLine
4,597
.86
--
- 4
,597
.86
2,054
.65
- 3
53.7
6 -
2,4
08.4
1 2
,189
.45
2,543
.21
LiveStock
11.
66
- 0
.43
3.4
2 8
.67
--
--
- 8
.67
11.
66
Tota
l 1,
99,3
15.1
2 6
,685
.36
32,9
36.1
1 1
52.5
4 2,
38,7
84.0
5 9
4,64
2.50
1
,187
.53
15,
233.
10
154
.20
1,10
,908
.93
1,2
7,87
5.12
1,
09,4
90.9
3 b
Inta
ngib
le A
sset
sGoo
dwillonCo
nsolidati
on2,343
.89
2,3
43.8
9 -
2,3
43.8
9 2,343
.89
Compu
tersoftware
706
.24
2.9
5 2
12.0
5 -
921
.24
250
.31
2.8
7 1
62.2
3 -
415
.41
505
.83
456
.01
Tota
l 3,050
.13
2.9
5 2
12.0
5 -
3,2
65.1
3 2
50.3
1 2
.87
162
.23
- 4
15.4
1 2
,849
.72
2,799
.90
Tota
l a &
b2,
02,3
65.2
5 6
,688
.31
33,1
48.1
6 1
52.5
4 2,
42,0
49.1
8 9
4,89
2.81
1
,190
.40
15,
395.
33
154
.20
1,11
,324
.34
1,3
0,72
4.84
1,
12,2
90.8
3 c
PreviousYea
r1,85,282.49
6,008
.79
17,348
.00
265
.24
2,08
,374
.04
78,92
5.27
1,091
.63
16,30
7.90
2
41.5
9 9
6,08
3.21
1
,12,
290.
83 1
,06,35
7.22
Ca
pita
l Wor
k In
Pro
gres
s-
--
- -
--
--
- 1
5,88
3.12
14,18
3.13
To
tal
- -
- -
- -
- -
- -
15,
883.
12
14,
183.
13
dIn
tang
ible
ass
ets
unde
r D
evel
opm
ent
- -
- -
- -
- -
- -
- 3
1.06
Tota
l -
- -
- -
- -
- -
- -
31.
06
Not
es1.GrossBlockin
clud
esamou
ntadd
edin
198
5on
revaluati
onofLan
d`
132.
31 la
khs,Buildings`
1,20
0.64
lakh
san
dPlan
tand
Machine
ry`
1,91
7.55
lakh
sascarried
outbyan
externa
lind
epen
dentvalue
r.Sincethevaluati
onwascarried
outlo
ngbacktheindicesap
pliedby
thevaluerisnotavaliable.
2.Add
ition
stoFixed
Assetsan
dCa
pitalw
ork-in-progressinclud
ene
tborrowingcostof`
1,31
4.36
lakh
scapitalised
duringtheyear(Previou
sYear`
28.2
2 la
khs).
3.Add
ition
toCap
italW
IPin
clud
esPreope
rativ
eexpe
nses/incom
easdetailedun
derNote29
.14.
4.Th
ereha
sbe
ennoim
pairmen
tlosson
assetsdu
ring
theyear.
5.Goo
dwillarising
onconsolidati
onissho
wnun
derintang
ibleassets.
6.Dep
reciati
onof`
84.7
2 La
khsforMed
inipurunit&
0.0
6 La
khsofJV
Com
panyhasbee
nchargedtoPreop
erati
veexpen
ses.
92
OCLINDIALIMITED ANNUALREPORT2013-14
`Lakhs2013-14 2012-13
12. MINE DEVELOPMENT & PRE OPERATIVE EXPENSESMineDevelopment&Pre-OperativeExpenses:MineDevelopmentDirectExpenses:GeologicalReportofMiningofCoalBlockasInterimrecoverablecostofexploration 53.85 53.86 FinancecostforIssuingBankGuarantee 20.20 20.20
74.05 74.06 Less:IntreceivedonFDforissueofBankGuarantee 18.37 12.60 Total(A) 55.68 61.46 MineDevelopmentAdministrativeExpensesAuditor'sRemuneration 0.03 0.03 BankCharges 0.03 0.03 Filing Fees 1.78 1.78 Travelling&Conveyance 0.72 0.50 AdvertisementExpenses 0.21 0.21 ApplicationFees 0.34 0.34 Depreciation 0.24 0.18 Printing&Stationery 0.15 0.13 Salary,Bonus,LeaveEncashment&medicalreimbursement 12.10 6.98 OfficeRent 0.44 0.33 TelecommunicationExpenses 0.08 0.05 GeneralExpenses 0.74 0.70 Professionalfees 3.73 3.45 PreliminaryExpenses 0.44 0.44 BooksandPeriodicals(PY`327/-) 0.01 0.00 Chanda&subscription 0.13 0.13 Insurancepremium(`126/-,PY`65/-) - 0.00 CorporateSocialResponsibilityExpenses 0.25 0.20 Postage&telegram(PY`369/-) 0.01 0.00 Power&fuel 0.03 0.02 Taxihirecharges 0.81 0.56 Delegatefees(`334,PY`334/-) - 0.00 Computer&Peripherals(PY`358/-) 0.01 0.00 Rates&Taxes(PY`499/-) 0.01 0.00 LegalExpenses 0.21 -Fees&Subcription(`79/-) - -Repairs&Maintenances(Others)(`340/-) - -OtherInterest(`315/-) - -LossonTheftofTelevision 0.01 -Roundedoff - 0.00 SurveyWork 1.71 0.49
24.22 16.55 Less:InterestreceivedonFixedDeposit 16.85 11.46 Less:InterestreceivedfromIncomeTaxDepartment 0.03 0.04 Total(B) 7.34 5.05 Total (A+B) 63.02 66.51
Note:Amountbelow`500/-aregiveninbracket
93
Corporate Overview Management Reports Financial Statements
` LakhsFace Value No. of
Shares/UnitsAmount ( In
` Lakhs)No.of
Shares/UnitsAmount(In
`Lakhs)2013-14 2012-13
13 NON CURRENT INVESTMENTSTRADE - Unquoted - At CostEquity Instruments - Fully paid upJoint Venture
Radhikapur(West)CoalMiningPvtLtd(Note29.6) 10 38,35,000.00 383.35 38,35,000.00 383.35 Others
FirstCapitalIndiaLimited 6 166.00 0.01 166.00 0.01 IndiaInformationTechnologyLimited(`10/-) 10 1.00 - 1.00 -
Preference Shares - Fully paid upAssociatesTotal (A) 38,35,167.00 383.36 38,35,167.00 383.36
*Redeemableattheoptionofthecompanyintrenchesofthecompany’schoicebutnotlaterthan10yearsfromthedateofissue.
NON TRADE - UNqUOTED (Unless Otherwise Stated)At CostEquity Instruments - Fully paid upOthers
CrescentFinstockLimited 10 1,400.00 - 1,400.00 -GujaratCompositeLimited 10 16.00 - 16.00 -IspatProfilesIndiaLimited(`75/-) 10 50.00 - 50.00 -BagalkotUdyogLimited 1 100.00 0.01 100.00 0.01 OrissaIndustriesLimited 10 73,450.00 1.40 73,450.00 1.40 TheScindiaSteamNavigationCompanyLtd 20 504.00 0.06 504.00 0.06 TheTravancoreCementsLimited 10 100.00 0.01 100.00 0.01 DigvijayFinleaseLimited 10 25.00 - 25.00 -IndoFlogatesLimited 10 100.00 0.01 100.00 0.01 BagalkotCement&IndustriesLtd 10 1.00 - 1.00 -KanoriaSugar&GeneralMfg.CoLtd(`183/-) 10 25.00 - 25.00 -Magnesite&MineralsLimited 10 100.00 0.01 100.00 0.01 UshaIspatLimited 10 100.00 0.01 100.00 0.01 OrindExportsLimited(`201/-) 10 100.00 - 100.00 -
Debentures or BondsNon-convertibleSecured-Fullypaidup
8%-IndianChamberofCommerce 100 12.00 0.01 12.00 0.01 Non-convertibleSecured-Partlypaidup
8%-IndianChamberofCommerce-Fractional(`50/-) 25 2.00 - 2.00 -Others - Fully Paid up
Co-operativeSociety 100 50.00 0.05 50.00 0.05 PropertyRightsinHolidayResort 4.00 0.41 4.00 0.41
Total (B) 76,139.00 1.98 76,139.00 1.98 Total (A + B) 39,11,306.00 385.34 39,11,306.00 385.34 Quoted Investments -UnquotedInvestments 6,217.39 385.34
6,217.39 385.34 MarketvalueofquotedinvestmentsNote:Costbelow`400/-aregiveninbrackets
94
OCLINDIALIMITED ANNUALREPORT2013-14
` Lakhs Non Current Current Non Current Current
2013-14 2012-13
14 LOANS AND ADVANCESCapital Advances Secured-consideredgood 624.37 - 2,311.18 -Unsecured-consideredgood 485.96 - 1,509.65 -Unsecured-considereddoubtful - - 6.36 -Less:Provisionfordoubtfuladvances - - 6.36 -Security Deposits Unsecured,consideredgood 27.80 2,642.76 62.38 2,442.69Loans and advances to related partiesUnsecured,consideredgood(Refernoteno29.9b(2j) - 0.93 23.07 Other loans and advancesSecured,consideredgood
Loantoemployees 15.53 6.66 7.59 2.64 Advancesrecoverableincashorinkind - - - -
Unsecured,consideredgoodInterest Accrued on Investments - - - -Balanceswithgovtauthorites - 5,123.61 - 2,827.21Advanceforallotmentofshares - - - -Loan/Advancesrecoverableincash/kind 79.02 3,206.57 97.90 3,798.23Loans/advancestorelatedparties - - - -Loans/advancestoemployees* 30.13 102.44 10.11 57.69 Matcreditentitlement - 208.02 - -Advanceincometax(netofprovisionfortaxation) - 2,886.64 - 3,570.12
Unsecured-considereddoubtful - 27.14 - 52.86 Less:Provisionfordoubtfuladvances - 27.14 - 52.86
1,262.81 14,177.63 3,998.81 12,721.65 Loan due by director or other officers etc
*OtherofficersoftheCompany 43.92 19.10
2013-14 2012-13
15 OTHER NON CURRENT ASSETSUnsecured,consideredgood 27.93 27.02 Accrued Interest 27.93 27.02
95
Corporate Overview Management Reports Financial Statements
No. of Shares/ Units
Amount (In ` Lakhs)
No. of Shares/ Units
Amount (In ` Lakhs)
16 CURRENT INVESTMENTSNON TRADE - UNqUOTED At Cost or NAV whichever is lowerUnits of Mutual Funds - Fully Paid up
UTITreasuryAdvantageFund-InstPlan(DDP)-Reinvest
6,37,339.68 6,388.19 8,84,476.41 8,846.66
BirlaSunlifeSavingFund-Instl.-DD-Reinvest 71,17,374.71 7,147.70 44,80,144.13 4,484.39BirlaSunLifeFixedTermPlanSeriesFCGrowth - - 1,98,00,000.00 1,980.00BSLDynamicBondFund-Retail-Growth - - 94,89,165.05 1,799.99MF-IDFC Money Manager Fund -Treasury Plan-DailyDividend
1,59,17,599.05 1,602.89 - -
ICICIPrudentialFlexibleIncomePlanPremium-DailyDividend
57,98,148.59 6,130.72 33,74,944.15 3,568.50
ICICI Prudential Inst Short term Plan - DivdReinvestment Fortnight
38,582.22 4.58 6,09,915.66 75.81
ICICI Prudential Regu Short term Plan - DivdReinvestment Fortnight
- - 14,983.64 1.80
ICICIPrudentialFMPSeries63-370Days - - 2,00,00,000.00 2,000.00ICICI-ShorttermPlan-RegularGrowth - - 38,87,997.76 900.00 ICICIPrudential IntervalFundQuartely IntervalPlanI-DirectPlan-Dividend
80,00,000.00 800.00 - -
ICICI Prudential Interval Fund II QuarterlyIntervalPlanB-DirectPlan-Dividend
49,98,250.00 500.00 - -
SBI-SHF-UltraShorttermFund-RegularPlan-DD 1,13,572.54 1,139.05 2,05,892.44 2,061.57Templeton India Short term income retail plan 35,256.23 800.00 35,256.23 800.00 Total 4,26,56,123.01 24,513.13 6,27,82,775.45 26,518.72 Less: Provision for dimunition in the value ofInvestments
Net Asset Value 24,631.02 27,069.20
` Lakhs2013-14 2012-13
17 INVENTORIES (REFER NOTE 1.6 OF STANDALONE FOR MODE OF VALUATION)Raw Materials and components
-InStock 7,532.47 7,299.24-InTransit 55.52 649.22
Work-in-progress-InStock 4,500.70 5,725.36-InTransit 212.08 116.14
Finished goods-InStock 7,850.24 9,705.04-InTransit 601.03 625.02
Stock-in-trade-InStock 27.17 279.11 -InTransit 552.96 -
Stores,spares,fuel&packingmaterials-InStock 10,126.48 12,760.00-InTransit 3,569.69 202.77
LooseTools -InStock 26.31 28.34
Total 35,054.65 37,390.24
96
OCLINDIALIMITED ANNUALREPORT2013-14
`Lakhs2013-14 2012-13
18 TRADE RECEIVABLESOutstandingforaperiodexceedingsixmonthsfromthedatetheyaredueforpayment
Secured,consideredgood 464.79 116.69 Unsecured,consideredgood 1,539.40 1,186.19Unsecured,considereddoubtful 1,389.01 903.07
3,393.20 2,205.95Less:Provisionfordoubtfuldebts 1,389.01 903.07
2,004.19 1,302.88Others
Secured,consideredgood 6,732.82 4,159.13Unsecured,consideredgood 17,709.29 15,210.34
24,442.11 19,369.47Total 26,446.30 20,672.35TradeReceivablestatedaboveincludedebtsdueby:
Directors*
OtherofficersoftheCompany*
Firminwhichdirectorisapartner*
PrivateCompanyinwhichdirectorisamember
2013-14 2012-13
19 CASH & BANK BALANCESCash & Cash EquivalentsBalancewithbanks:
-Incurrentaccounts 6,740.57 5,631.36-Indepositwithoriginalmaturityoflessthan3months 1,766.02 7,563.80-Inunpaiddividendaccount 96.54 97.99
Cheques,draftsonhand - 190.26 Funds in transit - -Cash on hand 406.67 370.24 Stamps on hand 0.03 0.04 Other Bank BalancesDepositswithoriginalmaturityofmorethan12months - -DepositsEarmarked(CY-AgstPublicDeposits)/PY-AgstPublicDeposit&NOC)* 197.64 670.52 Depositswithoriginalmaturityofmorethan3months 3.00 -
9,210.47 14,524.21Less:Shownunderothernoncurrentassets - -(Refernoteno13) 9,210.47 14,524.21*Includesdepositof`450lakhs(PY)lienmarkedagainstobligation&64.45Lakhs(CY)59lakhs(PY)asmarginforBankGuarantee
20 OTHER CURRENT ASSETSInterestaccruedbutnotdue 270.23 205.82 Claims&otherreceivable
Considered good 312.25 217.89 Considereddoubtful 8.44 7.33
Assetsheldforsale(atlowerofnetbookvalueandnetrealisablevalue) 14.87 11.23 Others 16.53 0.32
622.32 442.59 Less:Setofffromprovisionfordoubtfuldebts 8.44 7.33
613.88 435.26
97
Corporate Overview Management Reports Financial Statements
`Lakhs
2013-14 2012-13
21 REVENUE FROM OPERATIONS (REFER NOTE NO 1.4 ON REVENUE RECOGNITION)Sale of Products
Cement 1,73,776.58 1,68,374.37
Refractories 28,925.92 27,431.57
Power 216.57
Others-Clinker 2,456.68 1,009.48
Others-Dolomite 63.50 73.74
Self Consumption of Products
Cement 452.30 381.89
Refractories 1,080.71 958.34
Sale of Traded Products
Slag,Coal&Gypsum 5.54 3,509.38
Refractories 14,142.14 7,422.11
Sale of Services
MarketingServices 654.93 418.32
BusinessAuxiliaryServices 9.07 15.40
Other Operating Revenue 697.40 845.59
2,22,481.34 2,10,440.19
Less: Excise Duty 28,128.08 25,576.13
1,94,353.26 1,84,864.06
22. OTHER INCOMEInterestReceipts-Ondeposits,taxrefundsandfromcustomersetc. 583.53 268.41
Profitonsaleofassets 0.71 -
GainduetoExchangeDifferenceotherthanconsideredasfinancecost(Net) - 4.29
Dividendsfrominvestmentsinmutualfunds-current 871.80 1,283.33
Profitonsaleoflongterminvestment 681.20 -
Profitonsaleofcurrentinvestments 19.55 1.58
OtherNonOperatingIncome 1,781.18 980.10
3,937.97 2,537.71
23. COST OF MATERIALS CONSUMEDi) Limestone(OwnQuarry)-Seenotebelow 11,090.33 9,744.14
ii) Slag 15,212.52 15,568.79
iii) PurchasedClinker - 2,686.44
iv) Others# 21,625.01 18,022.91
47,927.86 46,022.28
98
OCLINDIALIMITED ANNUALREPORT2013-14
`Lakhs2013-14 2012-13
Note:a) # None of these individually account for more than 10% of the total cost of material
consumedb) Expenses included in the cost of raw materials
SalariesandWages 602.90 504.57 ContributiontoProvidentandOtherFunds 64.66 61.43 WorkmenandStaffWelfareExpenses 42.02 54.84 PaymenttoContractorsforServices 1,588.39 1,809.42PowerandFuel 854.70 1,085.64ConsumptionofStoresandSpareParts 3,115.50 1,720.59RepairstoMachinery 1,750.15 1,510.11RepairstoBuildings 4.17 19.06 RoyaltyandCess 1,691.29 1,828.00Rent 1.46 4.91 RatesandTaxes 119.02 79.33 Insurance 32.79 24.51 Commission to Other Agents - -Depreciation 2,173.39 2,314.00SundrySales/Income (47.56) (36.08)
11,992.88 10,980.33
24. PURCHASE OF GOODS TRADEDSlag,Coal&Gypsum 5.76 3,454.03Refractories 2,946.87 4,668.91
2,952.63 8,122.94
25. CHANGES IN INVENTORIES OF FINISHED GOODS , WORK IN PROGESS & STOCK IN TRADEStocksatthebeginningoftheyear
Finished Goods 10,330.06 3,269.92Traded Goods 279.11 380.24 WorkinProgress 5,841.50 1,252.78
16,450.67 4,902.94 16,450.67 1,650.51
Less:Stocksattheendoftheyear(Seefootnotebelow)Finished Goods 8,451.28 10,330.06Traded Goods 580.13 279.11 WorkinProgress 4,712.78 5,841.50
13,744.19 16,450.67 2,706.48 (9,897.22)
Foot Note:-StockinTrade
Finsihed GoodsCement 2,840.62 4,718.77Refractories 5,610.66 5,611.29
8,451.28 10,330.06Traded Goods
Refractories 580.13 279.11 WorkinProgress
Cement 3,257.06 4,567.11Refractories 1,455.72 1,274.39
4,712.78 5,841.50
99
Corporate Overview Management Reports Financial Statements
`Lakhs2013-14 2012-13
26. EMPLOYEE BENEFITS EXPENSE(Refernote1.8ofStandaloneonemployeebenefits)Salaries,Wages,BonusandGratuity 9,713.45 8,072.61ContributiontoProvidentandOtherFunds 946.74 873.87 ContributiontoProvidentandOtherFunds-Contractorsemployees 309.30 262.57 WorkmenandStaffWelfareExpenses 480.37 497.56
11,449.86 9,706.61
2013-14 2012-1327. FINANCE COSTS
InterestexpenseOnTermLoans,DebenturesandDeposits 5,746.19 7,089.75ToBanksandOthers 1,037.51 262.64
OtherBorrowingCost 175.38 253.77 Applicablenetgain/lossonforeigncurrencytransactionsandtranslation 147.20 161.40
7,106.28 7,767.56
2013-14 2012-1328. OTHER EXPENSES
ConsumptionofStores,SparepartsandPackingmaterials 9,955.63 9,074.98Repairs and Maintenance
Machinery 5,691.85 5,798.88Buildings 530.83 632.21 Others 190.94 159.01
PaymentstoContractorsforServices 4,540.35 4,245.27PaymentsforServices 107.18 23.43 RoyaltyandCess 15.78 14.54 Rent 954.11 676.56 RatesandTaxes 2,013.79 972.42 ExcisedutyonStockandOthers (409.95) 1,098.00Freight,TransportationandHandling 26,966.41 20,581.90Commission to Selling Agents 762.31 598.57 Rebates,DiscountsandAllowances 525.65 393.40 Insurance 323.61 274.78 Travelling 696.44 513.72 AdvertisementandPublicity 1,671.85 1,929.48Legal 158.14 238.25 Directors'TravellingandConveyance 16.66 15.18 Directors'Fees 9.90 10.30 CommssiontoNonExecutiveDirectors 41.55 41.55 CommssiontoExecutivevicechairman&ManagingDirector 100.00 -CharityandDonations 556.96 487.70 LossonsaleofCurrentInvestments 42.70 -AssetsWrittenoffandLossonSaleofAssets 2.50 10.89 LossduetoExchangefluctuationotherthanfinancecost(Net) 859.33 133.20 ProvisionforObsolesenceInventory 26.17 -ProvisionforDoubtfulDebts 474.81 191.01 BadDebtsWrittenOff 0.50 -PaymenttoOutsideAgency 3,903.96 2,663.34MiscellaneousExpenses 5,038.97 3,514.35Total 65,768.93 54,292.92
100
OCLINDIALIMITED ANNUALREPORT2013-14
`Lakhs2013-14 2012-13
29. OTHER NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS29.1 Contingent liabilities not provided for in respect of :
(i) ClaimsagainsttheCompanynotacknowledgedasdebts(a) Disputed liability relating to ESI Contribution on over time wages and other
allowances57.95 55.95
(b) DisputedliabilityrelatingtoPFContributiononcertainallowances 71.22 71.22(c) Disputed liability relating topaymentof premiumon forest landused forMining
purpose154.13 154.13
(d) ForPollutionControlBoard,Orissa 8.86 8.86(e) DisputedclaimforsupplyofRefractories 156.30 156.30(f) DisputedliabilitiesrelatingtoRailwayforenhancedGodownrentandoverloading
penal charges197.49 175.91
(g) DisputedSalesTaxdemand(includinginterest&penalty)-matterunderappeal 665.57 629.00(h) DisputedEntryTaxdemand-matterunderappeal 293.28 149.66(i) DisputedExcisematters 3,756.38 4,265.49(j) DisputedcounterclaiminaArbitrationmatter. - -(k) DisputedliabilitiesrelatingtopurchaseofElectricity 302.16 358.92(l) DisputedliabilitiesforLanjibernaMinesforpaymentofStampDuty 8349.76 0.00(m) Others 222.15 363.04
14,235.26 6,388.48(ii) OthermoniesforwhichtheCompanyiscontingentlyliable:
(a) Disputedliabilityrelatingtolabourmatters-pendinginCourts 4.57 4.57(b) DisputedliabilityrelatingtoLandmatters-pendinginCourts 39.51 39.51(c) Others 78.50 78.50Total 122.58 122.58
(iii) DisputedliabilityinrespectofIncomeTaxdemands 213.03 302.88
In respect of items above, future cash outflows in respect of contingent liabilities aredeterminable only on receipt of judgements / decisions pending at various forums /authorities.
(iv) a) Guarantee given to Banks on behalf of Radhikapur (West) Coal Mining PrivateLimited againstwhichcounterguaranteeof`3.32Lakhs(PY561Lakhs)hasbeenreceivedfromOISL
636.00 1076.00
29.2 Estimatedamountofcontractsremainingtobeexecutedoncapitalaccount(netofadvances)andnotprovidedfor
5,865.96 15,644.97
29.3 IntheopinionoftheBoardandtothebestoftheirknowledgeandbelief,thevaluationonrealisationofcurrentassets,loansand
advancesintheordinarycourseofbusinesswouldnotbelessthantheamountatwhichtheyarestatedintheBalanceSheet.
29.4 TheSupremeCourtofIndiainApril,1996,upheldthevalidityofJutePackingMaterials(CompulsoryuseinPackingCommodities)
Act,1987.TheCompanyhasbeenlegallyadvisedthattheActisapplicabletoitonlywitheffectfromOctober,1996.UndertheAct,
CementManufacturersarerequiredtouseJutePackagingMaterialforsupplyordistributionupto50%oftheirtotalproduction.
TheCalcuttaHighCourthasgrantedstayagainstshowcausenoticereceivedbytheCompanyfromtheJuteCommissioner.The
TransferPetitionfiledbytheUnionofIndiabeforetheHon’bleSupremeCourtwasdismissedbytheHon’blecourtduetodefault
andasaresultofwhichthependingwritoftheCompanywillbeheardbytheHon’bleKolkataHighCourtonmerits.Theamount
thatmaybecomepayable,ispresentlynotascertainable.However,theGovernmenthasnotnotifiedthecompulsorypackingof
Cementinjutepackingmaterialsfortheperiodeffectivefrom1stJuly,1997.
29.5 Duringtheyearanamountof`115.00lakhs(PY25.00Lakhs)hasbeendonatedto“RashtriyaAhinsaManch”aregisteredPolitical
partyundersection29AofRepresentationofthePeopleAct,1951havingitsregisteredofficeat132/1,MahatmaGandhiRoad,
Kolkata-700007.
101
Corporate Overview Management Reports Financial Statements
29. OTHER NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONT…)
29.6 InrespectoflicencegrantedforcaptiveminingBlockatRadhikapurmines,aJointVenturecompanyRadhikapur(West)CoalMiningPrivateLimitedhasbeen incorporatedon29thMarch2010 inwhichtheCompany’s interest jointlywithOCL Iron&SteelLimited(OISL)is14.696%.TheCompanyhasinvested̀ 734.80Lacs(PY734.80Lacs)inequitysharesoftheJVCompanywhichincludes̀ 383.35 Lacs(PY383.35Lacs)beingproportionatevalueofsharestobetransferedtoOISLafterthereceiptofapprovalfromtheMinistryofCoal,GovtofIndiaandotherJointVenturePartners.
TheMinistryofCoal,Governmentof Indiavide its letterdt.14.2.2014cancelled theallocationof coalblocks to the jointventurecompany,allegingdelay inundertakingproduction.The joint venturecompanyandtheCompanyfiledawritpetitionbeforetheHon’bleDelhiHighCourt,whichhasdirectedtheMinistrytomaintainstatusquotillthenextdateofhearingandnottotakeanyfurtherstepstoreallocate,thecoalblocksorforcreatinganythirdpartyrightstherein,tilltheirfurtherorders.TheCourthasalsogivenlibertytotheCompanytoapproachit,ifthereisanyactionforencashmentofbankguarantee.TheCompanyhastakenthestandthatthedelayhasoccurred,mainlyonaccountoftheStateandCentralGovernmentandconsequentlyde-allocationisnotwarranted.Inthecircumstances,thecompanyisoftheviewthatthesituationdoesnotaffectthecarryingcostoftheinvestmentsanditisnotrequiredtorecognisedecline(ifany)ofitsinvestmentsasontheBalancesheetdate.
29.7 Bankbalancesincludes`45,494/-(PY`45,794/-)lyinginacurrentaccountwithanationalisedbank,tobeoperatedjointlybytheauthorised
signatoriesoftheCompanyandOISLinrespectofCoalBlockOperationsasmentionedinnote28.7ofStandaloneFinancialStatement.`Lakhs
Cement Refractory Others Unallocable Total 29.8 Segment Disclosure (AS - 17)
Segment operating RevenueExternal 1,76,455.37 43,786.79 - 8.77 2,20,250.93
(1,72,893.23) (35,345.74) - (15.40) (2,08,254.37)Inter-Segment 22,303.00 1,538.00 - - 23,841.00
(4.35) (421.39) - - (425.74)Segment Result
Profit/(Loss)beforetaxandinterest 22,303.00 2,840.00 - (3,724.17) 21,418.83 (31,310.17) (2,252.82) - (2,843.28) 30,719.71
Less:Interest (7,106.28) (7,106.28)(7,767.56) (7,767.56)
ProfitbeforeTaxation 14,312.55 22,952.15
ProvisionforTaxation-Current (3,077.05) (3,077.05)(5,900.00) (5,900.00)
-Deferred (688.72) (688.72)(905.44) (905.44)
-Taxrelatingtoearlier years
- -
-MATcreditavaliablefor Reversed/(-)setoff
208.02 208.02
(200.00) (200.00)ProfitafterTaxation 10,754.80
(15,946.71)Other Information
Segment Assets 1,85,494.25 44,478.67 28,390.20 2,58,363.12 (1,72,781.05) (37,225.42) (33,238.66) (2,43,245.13)
SegmentLiabilities 39,796.22 11,681.50 91,945.36 1,43,423.08 (31,425.90) (6,597.13) (98,353.86) (1,36,376.89)
CapitalExpenditureincludingcapitalWIP 34,599.18 905.52 24.87 35,529.57 (13,290.84) (818.27) (251.17) (14,360.28)
Depreciation 14,245.81 1,075.98 73.54 15,395.33 (15,560.07) (708.16) - (42.54) (16,310.77)
Noncashexpensesotherthandepreciation:ProvisionforLeaveencashment 77.33 (3.06) 12.32 86.59
(14.59) (16.08) (6.52) (37.19)
Note:
a) As per practice consistently followed, inter segment transfers for capital jobs recognised at cost and for other jobs at estimatedrealisablevalue.
b) Businesssegmentisconsideredasprimarysegmentandthereisonlyonegeographicalsegment
102
OCLINDIALIMITED ANNUALREPORT2013-14
29. OTHER NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONT…)
29.9 RelatedPartyDisclosures(AS-18)
a) Relatedpartiesandtheirrelationship:
1) Keymanagementpersonnel : ShriMHDalmia, Shri RHDalmia, Shri.GauravDalmia (ExecutiveViceChairman&MD),
ShriD.D.Atal(WholetimeDirector&CEO)
Relatives:Shri.A.H.Dalmia,Shri.V.H.Dalmia,ShriY.HDalmia,Smt.AbhaDalmia,Smt.PadmaDalmia,Smt.ShripriyaDalmia
Thirani,Smt.AnuradhaJatia,Smt.KanupriyaSomany,Smt.SharmilaDalmia,Shri.PuneetYaduDalmia,Smt.KiranAtal.
2) Enterprises overwhich keymanagement personnel are able to exercise significant influence : HariMachines Limited,
DalmiaBharatSevaTrust,DalmiaInstituteofScientific&Research(DISIR),DaltonInternationalLtd,DalmiaCement(Bharat)
Ltd.,LandmarkPropertyDevelopmentCo.Ltd,ShreeNatrajCeramic&Chemical IndustriesLtd,AstirPropertiesPvt.Ltd,
LandmarkLandholdingsPvt.Ltd,DalmiaBharatSugar&IndustriesLtd,DalmiaBharatLtd(FormalyDalmiaBharatEntrprises
Ltd),CalcomCementIndiaLtd,DebikaySystemsLimited,KiranResources(P)Ltd,DalmiaRefractories(Prop:DalmiaBharat
EnterprisesLtd.),DalmiaMagnesiteCorporation(Prop:DalmiaBharatSugar&IndustriesLtd.
b) Transactionswithaboveinordinarycourseofbusiness:
`Lakhs
2013-14 2012-13
1) Transactionswithpartiesreferredin(1)above:
(a) Remuneration/Pension 839.53 526.89
(b) FixedDepositreceived 7.75 28.04
(c) InterestExpense 1.98 2.41
(d) Servicereceived 9.79 7.00
(e) RentPaid 58.93 28.04
(f) Payableattheyearend 33.90 22.36
2) Transactionswithpartiesreferredin(2)above:
(a) Purchaseofgoods 370.81 161.57
(b) Purchaseoffixedassets 60.80 47.51
(c) Saleofgoodsandfixedassets 3,008.65 2,087.67
(d) Servicerendered 108.03 26.93
(e) Servicereceived 2,959.72 2,548.76
(f) Intercorporatedepositreceviedback - (1,000.00)
(g) InterestIncome - 38.36
(h) Advancegivenandreceived - 4.85
(i) RentPaid 13.93 29.64
(j) Receivableattheyearend 1,455.27 449.93
(k) Payableattheyearend 851.13 2,400.59
c) DisclosureofMaterialtransactionswithRelatedParties
Remuneration
Syt.M.H.Dalmia 22.66 22.37
Syt.R.H.Dalmia 278.11 149.63
Shri.D.D.Atal 182.52 145.29
Shri.Gaurav Dalmia 280.82 152.07
103
Corporate Overview Management Reports Financial Statements
`Lakhs
2013-14 2012-13
Purchase of fixed assets
HariMachinesLtd. 2.41 47.51
Purchase of goods
DalmiaCement(Bharat)Ltd. 1.30 11.32
DalmiaBharatSugar&IndustriesLtd 33.66 45.97
DalmiaBharatLtd 270.93 104.23
Sale of goods and fixed assets
CalcomCementIndiaLimited 2,082.10 1,183.55
DaltonInternational.Ltd 899.22 812.02
HariMachinesLtd. 20.08 61.70
Service rendered
HariMachinesLtd. 5.76 4.23
Service received
HariMachinesLtd. 7.04 15.38
DalmiaCement(Bharat)Ltd. 13.87 36.59
DalmiaBharatLtd 2,681.66 2,282.10
DISIR 119.70 116.74
DaltonInternational.Ltd 111.89 76.17
AstirPropertiesPvt.Ltd.(Rent) 13.93 28.04
Inter corporate deposit received back
CalcomCementIndiaLimited - (1,000.00)
Interest Income
CalcomCementIndiaLimited - 38.36
Receivable at the year end
DaltonInternational.Ltd 899.22 -
HariMachinesLtd. 12.43 9.73
CalcomCementIndiaLimited 542.49 387.81
Payable at the year end
DaltonInternational.Ltd 49.31 90.83
DalmiaBharatLtd 697.82 2,282.10
DalmiaCement(Bharat)Ltd. 16.68 17.25
29.10 Earning per share (EPS) AS - 20
Profitaftertax(In`Lakhs) 10,715.42 15,934.19
WeightedAverageNo.ofequitysharesof`2 each as on 31.03.2014
Basic&Diluted(No.inLakhs) 569.00 569.00
EPS(`)
Basic&Diluted 18.83 28.00
29. OTHER NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONT…)
104
OCLINDIALIMITED ANNUALREPORT2013-14
29. OTHER NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONT…)
29.11 Following Joint Venture has been consolidated on proportionate basis:
NameoftheCompany CountryofIncorporation
ProportionofOwnership Interest as
atMarch31,2014
Radhikapur(West)CoalMiningPrivateLimited India 7.029%
i) TheJointVentureisajointlycontrolledentitywiththejointcontroloverfinanceandmanagementbyalltheJVShareholders,
which isclearlyspeltout intheMemorandumandArticlesoftheJointVentureCompany.Radhikapur(West)CoalBlockhas
beenallottedtothreeventurersviz.RungtaMinesLimited,OceanIspatPrivateLimitedandOCLIndiaLimitedbyGovt.ofIndia,
MinistryofCoalvidetheirletterNo.13016/77/2006-CA-Idated21stDecember,2009.
ii) Details of theOCL India Limited’s share of assets and liabilities in the Joint Venture included in the Consolidated Financial
Statementsareasfollows:
`Lakhs
Particulars As at March 31, 2014
(unaudited)
As at March 31,2013
(unaudited)
EqUITY & LIABILITIES
Current Liabilities
Tradepayables 0.92 0.85
Othercurrentliabilities 0.02 0.01
Total 0.94 0.86
ASSETS
Non-current Assets
Tangibleassets 0.22 0.25
Pre-OperativeExpenses(refernoteno.12) 63.02 66.51
Long-termloansandadvances 149.80 149.80
Current Assets
Cash&bankbalances 130.97 128.72
Short-termloansandadvances 3.28 2.16
Other current assets 5.11 4.87
Total 352.40 352.31
Thisispre-OperatingperiodoftheJointVenturecompany.Alltheexpenditureincurredtillcommencementofcommercial
production is classified as ‘Mines Development & Pre-Operative Expenses’ pending capitalization under pre-operative
expenses.
105
Corporate Overview Management Reports Financial Statements
29. OTHER NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONT…)
`Lakhs2013-14 2012-13
29.12 ForeignCurrencyExposure(AmountinLakhs)i) Hedged -ForwardContractsforimports(USD) USD 8.77 -
Euro 0.19 3.33 TermLoan USD 79.32 23.68
i) NotHedged USD 6.84 3.33 Euro 7.02 1.77GBP 10.12 -
Creditors USD 11.1 8.11 Euro 1.52 1.91JPY 9.01 6.67GBP 0.3 0.30
Cash&BankBalance USD - 0.01 GBP(GBP330) - -
Euro - 0.01 RMB 0.03 0.03
JPY(JPY220) 0.14 -Kwacha 0.30 0.30
TermLoan USD 164.09 35.52 PCFCLOAN USD 4.27 5.13
EURO 8.64 3.43GBP 7.85 -
ForeignCurrencyLoanavailedunderBuyers'Credit USD - 203.63
29.13 EmployeeBenefits-AS15(Revised)
a) TheCompanyhasdeterminedtheliabilityforEmployeebenefitsasatMarch31,2014inaccordancewithrevisedAccountingStandard15issuedbyICAI-Employeedefinedbenefits.
b) FollowinginformationarebasedonreportofActuary.
DefinedbenefitplansasatMarch31,20142013-14 2012-13
Gratuity (Funded)
Leave Encashment (Unfunded)
Gratuity(Funded)
LeaveEncashment (Unfunded)
A Break-upofexpenses1) Current Service Cost 174.19 246.15 131.03 199.132) Interest cost 119.63 21.05 91.71 18.53) Expectedreturnonplanassets 126.52 - 95.09 -4) NetActuarial(gain)/lossrecongisedduringtheyear 106.52 (19.60) 139.58 (60.83)5) Totalexpense 273.82 247.60 267.23 156.80
B Actual return on plan assets1) Expectedreturnonplanassets 126.52 - 95.09 -2) Actuarialgain/(loss)onplanassets (22.84) - 21.28 -3) Actual return on plan assets 103.68 0.00 116.37 0.00
C Reconciliationofobligationandfairvalueofassets1) Presentvalueoftheobligation 1704.36 414.77 1488.05 328.182) Fairvalueofplanassets 1704.52 - 1488.53 -3) Fundedstatus[surplus/(deficit)] 0.16 (414.77) 0.48 (328.18)
D Change inpresent valueof theobligationduring the yearendedMarch31,20141) PresentvalueofobligationasatApril1,2013 1,488.05 328.18 1,188.28 291.002) Current Service Cost 174.19 246.15 131.03 199.133) Interest cost 119.63 21.05 91.71 18.494) Benefitspaid (161.19) (161.01) (83.83) (119.61)5) Actuarial(gain)/lossonplanassets 83.68 (19.60) 160.86 (60.83)6) PresentvalueofobligationasatMarch31,2014 1,704.36 414.77 1,488.05 328.18
106
OCLINDIALIMITED ANNUALREPORT2013-14
`Lakhs2013-14 2012-13
E ChangeinAssetsduringtheyearendedMarch31,20141) FairvalueofplanassetsasatApril1,2013 1488.53 1188.692) Expectedreturnonplanassets 126.52 95.093) Contributionmade 273.5 267.34) Benefitspaid (161.19) (83.83)5) Actuarialgain/(loss)onplanassets (22.84) 21.286) FairvalueofplanassetsasatMarch31,2014 1,704.52 1,488.53
F Themajorcategoryofplanassetsasapercentageoftotalplan
Gratuity:80%(PY76%)investedwithCentralGovt/Stategovt/StateGovt.Securities/PublicsectorbondsFixedDepositwithPSUBanks
LeaveEncashment:Unfunded2013-14 2012-13
G ActuarialAssumptions1) Discount rate 8.50% 8.00%2) Expectedrateofreturnonplanassets 8.50% 8.00%3) Mortality IALM (2006-08)
ULTIMATELIC1994-96
4) Salaryescalation 6.00% 5.00%c) Gratuityisadministeredbyanapprovedgratuityfundtrustd) Amountrecognisedasanexpenseinrespectofdefinedbenefitsplanasunder:
1) ContributiontoGratuityFund 273.5 267.32) Gratuitypaiddirectly 39.97 21.813) Leaveencashment 247.6 156.79
561.07 445.90e) DefinedContributionplan:
ContributiontoDefinedContributionPlan,recognisedasexpensefortheyearasunder:1) Employer’scontributiontoGovernmentProvidentFund 718.13 612.512) Employer’scontributiontoSuperannuationFund 76.65 60.563) Farewellgifttoretiredemployees 1.28 2.124) Medicalinsurancepremiumtoretiredemployees 16.58 10.77
812.64 685.96
29.14 CapitalWork-In-ProgressatOCLBengalCementWorks/Medinipurincludesthefollowingexpenses/income
Salary&Wages 111.48 199.89 Rent 4.47 8.77 Rates&Taxes - 0.80 Insurance 17.21 41.57 Finance Charges 183.31 111.82 Others 260.28 105.71
29. OTHER NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONT…)
forOCL INDIA LIMITEDOnbehalfoftheBoard
AnnexuretoourReportofDate Rachna Goria Gaurav Dalmia forV Sankar Aiyar & Co. (GMLegal&CompanySecretary) (ExecutiveViceChairman CharteredAccountants &ManagingDirector) FirmRegistrationNo:109208W
R. Raghuraman D N Singh D. D. Atal Place:NewDelhi Partner ExecutiveDirector(Finance) (WholeTimeDirector&CEO)Date:13.05.2014 MNo.81350 &ChiefFinancialOfficer
107
Corporate Overview Management Reports Financial Statements
Summary of Financial Information of Subsidiary CompaniesFortheFinancialYear2013-14
TheMinistryofCorporateAffairsvideitsCircularNo.2/2011dt.8thFebruary2011,hasgrantedgeneralexemptionunderSection212
(8)ofCompaniesAct,1956tocompaniesfromattachingtheaccountsofSubsidiaryCompanieswiththeAnnualReportoftheCompany.
However,companiesarerequiredtoprovidesummarisedfinancialinformationofthesubsidiaries.
Accordingly,OCLIndiaLimitedisprovidingasummaryoffinancialinformationofitssubsidiarycompaniesinlieuofattachingtheannual
accountsofitssubsidiarycompanieswiththeAnnualReportfortheyear2013-14.TheAnnualAccountsoftheSubsidiaryCompanies
areavailablewiththeCompanySecretary,OCLIndiaLimitedandareopenforinspectionbyanyshareholderattheRegisteredOffice
ofthecompanyduringworkingdays.ThecopyofAnnualAccountsshallalsobemadeavailabletoanyshareholderofOCLIndiaLimitedor
itssubsidiaryonrequestinwriting.
Thesummaryoffinancialinformationofsubsidiarycompaniesforthefinancialyear2013-14isasgivenbelow:
` LakhsSl.
No.
Particulars OCLGLOBALLTD. OCLCHINALTD. ODISHA
CEMENTLTD.Financial Year ending on # 31.03.2014 31.03.2014 31.03.2014 31.03.2014 31.03.2014Reporting Currency INR USD INR RMB INRExchange Rate (As on 31.03.2014) 60.49 - 9.82 - -Exchange Rate (Average rate 2013-14) 61.05 - 9.93 - -
1 Share Capital 1,347.88 28.30 2,441.12 404.29 5.00 2 ShareApplicationMoney - - - - -3 Reserves 4,234.70 68.77 2,266.68 132.82 (0.36)4 Liabilities 2,233.33 36.92 4,853.53 494.37 0.01 5 TotalLiabilities 7,815.91 134.00 9,561.33 1,031.48 4.65 6 Total Assets 7,815.91 134.00 9,561.33 1,031.48 4.65 7 Investments* 2,831.81 51.60 - - - 8 Turnover 12,743.86 208.75 9,764.95 983.83 -9 ProfitBeforeTaxation 586.94 9.61 430.91 29.39 (0.41)
10 ProvisionforTaxation - - 37.07 3.73 (0.04)11 ProfitAfterTaxation 586.94 9.61 393.84 25.66 (0.36)12 ProposedDividend - - - - -
# FinancialyearofOCLChinaLtd.endson31.12.2013,however,tocoincidewiththefinancialyearofOCLIndiaLtd.theaccountshave
beendrawnandauditedupto31.03.2014
* InvestmentinOCLChinaLtd.`2,831.81Lacs
Note:
1 AssetsandLiabilitiesforBalanceSheetitemsofforeignsubsidiariesaretranslatedattheclosingrateason31.03.2014.
2 IncomeandExpenseitemsofforeignsubsidiariesaretranslatedattheaverageexchangerateduring2013-14.
3 ShareCapitalofForeignSubsidiariesistranslatedattheexchangerateexistingatthedateoftransaction.
Notes
Corporate OverviewSustainable – Theme Amplification 01
OCL India Ltd. – At a Glance 02
The Management Speaks – Mr. Gaurav Dalmia 06
What makes us Sustainable? 07
Board of Directors 14
CONTENTS
Financial StatementsStandalone Financial Statements 47
Consolidated Financial Statements 79
Management ReportsDirectors’ Report 16
Management Discussion and Analysis 20
Corporate Governance Report 37
Corporate InformationPRESIDENTSMr. M. H. DalmiaMr. R. H. Dalmia
DIRECTORSMr. Pradip Kumar Khaitan – ChairmanMr. Gaurav Dalmia – Executive Vice Chairman & Managing DirectorMr. D. N. DavarDr. S. R. JainDr. Ramesh C. VaishMr. Puneet Yadu DalmiaMr. V. P. SoodMr. D. D. Atal – Whole Time Director & CEO
BANKERS / FINANCIAL INSTITUTIONSState Bank of IndiaUnited Bank of IndiaPunjab National BankUCO BankAXIS Bank Ltd.International Finance CorporationExport-Import Bank of IndiaYes Bank Ltd. HSBC Bank
AUDITORSV. Sankar Aiyar & Co. Chartered Accountants
CEMENT AND REFRACTORY WORKS & REGISTERED OFFICERajgangpur-770 017 (Odisha)
KAPILAS CEMENT WORKSCuttack-753 004 (Odisha)
Bengal Cement WorksAshok Nagar, Medinipur-721 101 (West Bengal)
DELHI OFFICE17th Floor, Narain Manzil, 23 Barakhamba Road,New Delhi-110 001
OCL INDIA LTD.Registered Office: Rajgangpur, Odisha - 770017, India
www.ocl.inOCL INDIA LTD.ANNUAL REPORT 2013-14