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I N DE X

S.No: C ONTENTS PAG E NO.

CHAPTE R- 1 1-6

_ INTRODU CTION Scope o f the Study

Objective of the Study

! ethodo"o#y o f the Study

$i%it&tio' of the Study

CHAPTE R- 2 7-20 _ INDUS TR( PRO)I $E

CO!PAN( PRO)I $ECHAPTE R- 3 21-35

_ RE *I E+ O) $ ITER ATURECHAPTE R- 4 36-47

_ DATA ANA $ (SIS AND INTER PRET ATIONCHAPTE R- 5 48-54

_ )INDINGS

_ CONC$ USION _ SUGG ESTION _ , I,$ IOG RAP-(

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CHAPTER-I

INTRODUCTION

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IN TR ODUC T ION:

$i&bi"itie &'d A et &e the & et he"d / ith the i'te'tio' o f bei'# u ed o' co'ti'uou

b& i fo the pu po e o f p oduci'# o p ovidi'# #ood o e vice &'d & e 'ot he"d fo e &"e i

the 'o %&" cou e o f bu i'e .

0E.#.: $&'d &'d ,ui"di'# 1P"&'t &'d ! &chi'e y1! oto * ehic"e 1) u 'itu e &'d ) i2tu e .3

* &"u&tio' of $i&bi"itie &'d A et & e i%pot&'t to h&ve f&i %e& u e o f p ofit o "o

&'d fi'&'ci&" po itio' o f the co'ce '. $i&bi"itie &'d A et &e %e&'t fo u e fo %&'y

ye& . The v&"ue of the e & et dec e& e / ith thei u e o / ith ti%e o %&'y othe e& o'

A po tio' o f $i&bi"itie &'d A et &e educed by u e &e co've ted i'to c& h th ou#h

ch& #i'# dep eci&tio'. ) o co ect %e& u e%e't o f i'co%e1 p ope %e& u e%e't o f

dep eci&tio' i e e'ti&"1 & dep eci&tio' co' titute & P&t of tot&" co t o f p oductio'.

) i'&'ci&" t &' &ctio' &e eco ded i' the boo4 1 4eepi'# i' vie / the #oi'# co'ce '

&pect o f the bu i'e u'it. I' #oi'# co'ce ' & pect it i & u%ed th&t the bu i'e u'it

h& e& o'&b"e e2pect&tio' o f co'ti'ui'# the bu i'e fo & p ofit fo &' i'de fi'ite pe iod o f

ti%e. Thi & u%ptio' p ovide %uch o f the ju tific&tio' fo eco di'# $i&bi"itie &'d A et &

o i#i'&" co t &'d dep eci&ti'# the% i' & y te%&tic %&''e / ithout efe e'ce to thei cu e't

e&"i5&b"e v&"ue.

It i u e"e to eco d the $i&bi"itie &'d A et i' the b&"&'ce heet &t thei e ti%&ted

e&"i5&b"e v&"ue if the e i 'o i%%edi&te e2pect&tio' o f e""i'# the%. So1 they &e ho/ ' &t

thei boo4 v&"ue 0i.e.1 Co t 6 Dep eci&tio' 3 &'d 'ot &t cu e't e&"i5&b"e v&"ue.

The %& 4et v&"ue of the $i&bi"itie &'d A et %&y ch&'#e / ith the p& e of ti%e1 but

fo &ccou'ti'# pu po e it co'ti'ue to be ho/ ' i' the boo4 i' hi to ic&" co t.

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The co t co'cept o f &ccou'ti'# t&te th&t dep eci&tio' c&"cu"&ted o' the b& i of

hi to ic&" co t of o"d & et i u u&""y "o/ e th&' the &%ou't c&"cu"&ted &t cu e't v&"ue7

ep"&ce%e't v&"ue. The e e u"t i' %o e p ofit 1 / hich i f di t ibuted i' fu"" / i"" "e&d t

eductio' i' c&pit&".

LIABILITIES AND ASSETS MANAGEMENT CYCLE

The $i&bi"itie &'d A et %&'e%e't cyc"e i the cyc"e o f &ctivitie f o% the

&c8ui itio' o f the & et to the fi'&" di po itio' o f the & et &t the e'd o f thei u efu" "ife.

The cyc"e h& 9 tep :

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LIABILITIES AND ASSETS MANAGEMENT CYCLE

:

Ac !"#"$"%& The cyc"e be#i' / ith the &c8ui itio'1 pu ch& e1 #ift o othe / i e1 of &'

& et &'d the dete %i'&tio' th&t the & et i to be c&pit&"i5ed. To be c&pit&"i5ed the & et

h& to %eet the e'cy : c&pit&"i5&tio' "i%it &'d h&ve & uefu" "ife o f o'e ye& o %o e.R'c'"("&) : The & et i fo %&""y eceived &'d &ccepted by the e'cy. Receipt %&y be

ve ified by e't y i'to &' &uto%&ted pu ch& i'# y te% o by h& d copy docu%e't. I' the

c& e o f do'&ted $i&bi"itie &'d A et1 eceipt c&' be ve ified by & "ette to the do'o .

P*+,'&$: P&y%e't i %&de fo the & et &cco di'# to the te % of the pu ch& e o de o

eco#'itio' o f &ccept&'ce o f & #ift to the do'o . The p&y%e't i'c"ude the &c8ui itio' co t

f ei#ht &'d &"" othe co t to put the & et. Ac8ui itio' co t o f do'&ted $i&bi"itie &'d A e

i dete %i'ed by it f&i %&4et v&"ue.

I '&$"."c*$"%&: the & et i ide'ti fied & &' & et1 t#ed o othe / i e ide'ti fied &'d

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e'te ed i'to the $i&bi"itie &'d A et %&'e%e't i've'to y y te%. A et & e ide'ti fied

/ ith & pe %&'e't"y &tt&ched ide'ti fic&tio' t etchi'# o by p&i'ti'# o' the ide'ti fic&tio'

'u%be .

.

I&('&$%/+ : The "o'#e t tep i' the cyc"e. The & et i u ed ove it u efu" "ife. A et &e

i've'to ied &'d &ccou'ted fo du i'# thi tep u'ti" they & e 'o "o'#e 'eeded. The

e'cy : po"icie &'d p ocedu e dete %i'e the i've'to y i'te v&"

E0c'##: the & et i dec"&ed & e2ce to the u e : 'eed . The & et %&y be t &' fe ed to&'othe

u e / he e it / i"" co'ti'ue to be u ed1 &ccou'ted fo &'d i've'to ied. A et %&y be

dec"&ed & e2ce %o e th&' o'ce u'ti" the & et i 'o "o'#e 'eeded.

S!/ !# : the "& t tep i' the $i&bi"itie &'d A et %&'e%e't cyc"e. The & et i dec"&ed

to be u p"u p ope ty &'d to h&ve 'o fu the v&"ue to the e'cy. The & et i di po ed o f

by &"e o di c&di'# depe'di'# o' the e idu&" v&"ue.S&"e c&' be by &uctio'1 e&"ed bid

pot &"e1 o th ou#h & &"e to e.

NEED AND IMPORTANCE O THE STUDY :

A $i&bi"itie &'d A et p"&y &' i%po t&'t o"e i' co%p&'y : objective . The e

fi2ed & e 'ot co've tib"e o 'ot "i8uid&b"e ove & pe iod o f ti%e. The o / 'e : fu'd &'d

"o'# te % "i&bi"itie &e i've ted i' $i&bi"itie &'d A et.

If fi % $i&bi"itie &'d A et &e id"e &'d 'ot uti"i5ed p ope "y it &ffect

the "o'# ;te % u t&i'&bi"ity of the fi %1 / hich %&y &ffect "i8uidity &'d o"ve'cy &'d

p ofit&bi"ity po itio' o f the co%p&'y.

$i&bi"itie &'d A et & e the & et / hich c&''ot be "i8uid&ted i'to c& h / ithi' o'e6


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ye& . The hu#e &%ou't of fu'd of the co%p&'y & e i've ted i' the e & et . Eve y ye&

co%p&'y i've t &' &dditio'&" fu'd i' the e & et di ect"y o i'di ect"y. The u viv&" &'d

othe objective of the co%p&'y depe'd o' ope &ti'# pe fo %&'ce o f %&'e%e't i.e.

effective uti"i5&tio' o f the e & et .

OB ECTI ES O THE STUDY:

The fo""o/ i'# & e the objective of the tudy

< To & e the &%ou't o f c&pit&" e2pe'ditu e %&de by the co%p&'y du i'# thepe iod

Of tudy =>>? ;@> to=>@;@B.

< The tudy i co'ducted to ev&"u&te the $i&bi"itie &'d A et tu 'ove of UARI

< The tudy i co'ducted to ev&"u&te / hethe $i&bi"itie &'d A et &e #ivi'#&de8u&te etu ' to the co%p&'y.

< To ev&"u&te th&t if $i&bi"itie &'d A et &e "i8uid&ted1/ h&t p opo tio' o f it / i"co't ibute fo the p&y%e't o f o/ 'e fu'd &'d "o'# ;te % ob"i#&tio'

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METHODOLOGY :

The d&t& u ed fo the &'&"y i &'d i'te p et&tio' i f o% &''u&" epo t of the

co%p&'y i.e.1 eco'd& y fo % of d&t&. R&tio &'&"yi i u ed fo c&"cu"&tio' pu po e.

The p oject i p e e'ted u i'# t&b"e 1 # &ph &'d / ith thei i'te p et&tio' . No

u vey i u'de t&4e' o ob e v&tio' tudy i co'ducted by ev&"u&ti'# $i&bi"itie &'

A et pe fo %&'ce o f the co%p&'y.

SOURC ES O DATA:

The d&t& 'eeded fo thi p oject i co""ected f o% the fo""o/ i'#

ou ce :

@.The d&t& i &dopted pu e"y f o% eco'd& y ou ce .

=.The theo etic&" co'te't &e #&the ed pu e"y f o% e%i'e't te2t boo4 &'d

efe e'ce .

.The fi'&'ci&" d&t& &'d i' fo %&tio' i #&the ed f o% &''u&" epo t of the

co%p&'y.

SCOPE O THE STUDY :

The p oject i cove ed o' $i&bi"itie &'d A et of UARI D &/ ' f o% &''u&" epo t of the

co%p&'y. The ubject %&tte i "i%ited to $i&bi"itie &'d A et1 it &'&"y i &'d it

pe fo %&'ce but 'ot to &'y othe &e& of &ccou'ti'# co po &te1 %&4eti'# &'d fi'&'ci&"

%&tte .

LIMITATIONS :

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The fo""o/ i'# & e the "i%it&tio' fo the tudy

@. The tudy i "i%ited i'to the d&te &'d i' fo %&tio' p ovided by the UARI &'d it &''u&"

epo t .

=. The epo t %&y 'ot p ovide e2&ct $i&bi"itie &'d A et t&tu &'d po itio' o f UARI

it %&y be v&yi'# f o% ti%e to ti%e &'d itu&tio' to itu&tio'.. Thi epo t i 'ot he"p fu" i' i've ti'# i' UARI

B.Eithe th ou#h di i've t%e't o c&pit&" %&4et.

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F. The &ccou'ti'# p ocedu e &'d othe &ccou'ti'# p i'cip"e &e "i%ited by the ch&'#e %&deby the co%p&'y1 %&y v& y $i&bi"itie &'d A et pe fo %&'ce.

CHAPTER-II

INDUSTRY PRO ILE

COMPANY PRO ILE

INDUSTRY PRO ILE

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I' the %o t #e'e &" e' e o f the / o d1 &c' , ' &$ i & bi'de 1 & ub t&'ce / hich et &'d

h&de' i'depe'de't"y1 &'d c&' bi'd othe %&te i&" to#ethe . The / o d ce%e't t &ce to

the Ro%&' 1 / ho u ed the te % opu c&e%e'ticiu% to de c ibe %& o' y / hich

e e%b"ed co'c ete &'d / & %&de f o% c u hed oc4 / ith bu 't "i%e & bi'de . The

vo"c&'ic & h &'d pu"ve i5ed b ic4 &dditive / hich / e e &dded to the bu 't "i%e to obt&i' &hyd &u"ic bi'de / e e "&te efe ed to & ce%e'tu%1 ci%e'tu%1 cH%e't &'d ce%e't.

Ce%e't u ed i' co' t uctio' & e ch& &cte i5ed & 9+ /* ! "c o &%&-9+ /* ! "c.

The %o t i%po t&'t u e o f ce%e't i the p oductio' o f %o t& &'d co'c ete the bo'di'#

of '&tu &" o &tifici&" #e#&te to fo % & t o'# bui"di'# %&te i&"/ hich i du &b"e i'

the f&ce of 'o %&" e'vi o'%e't&" e ffect .

Co'c ete hou"d 'ot be co' fu ed / ith ce%e't bec&u e the te % cem

ent efe o'"y to thed y po / de ub t&'ce u ed to bi'd the # e#&te %&tei&" of co'c ete. Upo' the &dditio'

of / &te &'d7o &dditive the ce%e't %i2tu e i efe ed to & co'c ete1 e peci&""y if

# e#&te h&ve bee' &dded.

It i u'ce t&i' / he e it / & fi t di cove ed th&t & co%bi'&tio' o f hyd &ted 'o' ;hyd &u"ic

"i%e &'d & po55o"&' p oduce & hyd &u"ic %i2tu e 0 ee &"o: Po55o"&'ic e&ctio' 31 but

co'c ete %&de f o% uch %i2tu e / & fi t u ed o' & "& #e c&"e by Ro%&'

e'#i'ee .They u ed both '&tu &" po55o"&' 0t & o pu%ice 3 &'d & tifici&" po55o"&'

0# ou'd b ic4 o potte y3 i' the e co'c ete . ! &'y e2ce""e't e2&%p"e of t uctu e %&de

f o% the e co'c ete &e ti"" t&'di'#1 'ot&b"y the hu#e %o'o"ithic do%e o f the P&'theo'

i' Ro%e &'d the %& ive ,&th of C& &c&""&. The v&t y te% o f Ro%&' &8ueduct &"o

%&de e2te' ive u e o f hyd &u"ic ce%e't.

The u e o f t uctu &" co'c ete di &ppe&ed i' %ediev&" Eu ope1 &"thou#h/ e&4 po55o"&'ic

co'c ete co'ti'ued to be u ed & & co e fi"" i' to'e / &"" &'d co"u%' .

! ode ' ce%e't ! ode ' hyd &u"ic ce%e't be#&' to be deve"oped f o% the t&t of the

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I'du t i&" Revo"utio' 0&ou'd @J>> 31 d ive' by th ee %&i' 'eed : - yd &u"ic e'de fofi'i hi'# b ic4 bui"di'# i' / et c"i%&te - yd &u"ic %o t& fo %& o' y co' t uctio' o fh&bo / o 4 etc.1 i' co't&ct / ith e&/ &te . Deve"op%e't o f t o'# co'c ete .

I' , it&i' p& ticu"& "y1 #ood 8u&"ity bui"di'# to'e bec&%e eve %o e e2pe' ive du i'# &

pe iod o f &pid # o/ th1 &'d it bec&%e & co%%o' p &ctice to co' t uct p e ti#e bui"di'#

f o% the 'e / i'du t i&" bic4 1 &'d to fi'i h the% / ith & tucco to i%it&te to'e. - yd &u"i

"i'e / e e f&vo ed fo thi 1 but the 'eed fo &f& t et ti%e e'cou ed the deve"op%e't o f

'e / ce%e't . ! o t f&%ou / & P&4e K Ro%&' ce%e't. Thi / & deve"oped by L&%e

P&4e i' the @9J> 1 &'d fi'&""y p&te'ted i' @9?M. It / &1 i' f&ct1 'othi'# "i4e &'y %&te i&

u ed by the Ro%&' 1 but / & & N&tu &" ce%e't %&de by bu 'i'# ept& i&; 'odu"e th&

&e fou'd i' ce t&i' c"&y depo it 1 &'d th&t co't&i' both c"&y %i'e &" &'d c&"ciu%c&bo'&te. The bu 't 'odu"e / e e # ou'd to & fi'e po / de . Thi p oduct1 %&de i'to &

%o t& / ith &'d1 et i' F6@F %i'ute . The ucce of Ro%&' Ce%e't "ed othe

%&'u f&ctu e to deve"op iv&" poduct by bu 'i'# & tifici&" %i2tu e of c"&y &'d ch&"4.

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Loh' S%e&to' %&de &' i%po t&'t co't ibutio' to the deve"op%e't o f ce%e't / he' he / &

p"&''i'# the co' t uctio' o f the thi d Eddy to'e $i#hthou e 0@9FF;?3 i' the E'#"i h

Ch&''e". - e 'eeded & hyd &u"ic %o t& th&t / ou"d et &'d deve"op o%e t e'#th i' the

t/ e"ve hou pe iod bet / ee' ucce ive hi#h tide . - e pe fo %ed &' e2h&u tive %& 4et

e e&ch o' the &v&i"&b"e hyd &u"ic "i%e 1 vi iti'# thei p oductio' ite 1 &'d 'oted th&t the

hyd &u"icity of the "i%e / & di ect"y e"&ted to the c"&y co'te't o f the "i%e to'e f o%

/ hich it / & %&de. S%e&to' / & & civi" e'#i'ee by p ofe io'1 &'d too4 the ide& 'o

fu the . App& e't"y u'& / &e o f S%e&to' K / o 41 the &%e p i'cip"e / & ide'ti fied by $oui

* ic&t i' the fi t dec&de of the 'i'etee'th ce'tu y. * ic&t/ e't o' to devi e & %ethod of

co%bi'i'# ch&"4 &'d c"&y i'to &' i'ti%&te %i2tu e1 &'d1 bu 'i'# thi 1 p oduced &'

&tifici&" ce%e't i' @J@9. L&%e ) o t1o 4i'# i' , it&i'1 p oduced / h&t he c&""ed , iti h

ce%e't i' & i%i"& %&''e &ou'd the &%e ti%e1 but did 'ot obt&i' & p&te't u'ti" @J==.

I' @J=B1 Lo eph A pdi' p&te'ted & i%i"& %&te i&"1/ hich he c&""ed Po t"&'d ce%e't1

bec&u e the e'de %&def o% it / & i' co"o i%i"& to the p e ti#iou Po t"&'d to'e.

A"" the &bove p oduct cou"d 'ot co%pete / ith "i%e7po55o"&' co'c ete bec&u e o f f&t

etti'# 0#ivi'# i' ufficie't ti%e fo p"&ce%e't 3 &'d "o / e& "y t e'#th 0 e8ui i'# & de"&y

of %&'y / ee4 be fo e fo %/ o 4 cou"d be e%oved 3. - yd &u"ic "i%e 1 '&tu &" ce%e't&'d &tifici&" ce%e't &"" e"y upo' thei be"ite co'te't fo t e'#th deve"op%e't. ,e"ite

deve"op t e'#th "o/ "y. ,ec&u e they / e e bu 'ed &t te%pe &tu e be"o/ @=F> C1 the

co't&i'ed 'o &"ite1 / hich i e po' ib"e fo e& "y t e'#th i' %ode ' ce%e't . The fi

ce%e't to co' i te't"y co't&i' &"ite / & %&de by Lo eph A pdi' K o' +i""i&% i' the e& "y

@JB>. Thi / & / h&t / e c&"" tod&y.%ode ' Po t"&'d ce%e't. ,ec&u e o f the &i of

%y te y / ith / hich +i""i&% A pdi' u ou'ded hi p oduct1 othe 0e.#. * ic&t &'d I C

Loh' o' 3 h&ve c"&i%ed

p ecede'ce i' thi i've'tio'1 but ece't &'&"y i o f both hi co'c ete &'d &/ ce%e't h&ve

ho/ ' th&t +i""i&% A pdi' K p oduct %&de &t No thf"eet1 e't / & & t ue &"ite;b& ed

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ce%e't. - o/ eve 1 A pdi' K %ethod / e e u"e;of; thu%b : * ic&t i e po' ib"e fo

e t&b"i hi'# the che%ic&" b& i of the e ce%e't 1 &'d Loh' o' e t&b"i hed the i%po t&'ce

of i'te i'# the %i2 i' the 4i"'.

+i""i&% A pdi' K i''ov&tio' / & cou'te ;i'tuitive fo %&'u f&ctu e of &tifici&

ce%e't 1 bec&ue they e8ui ed %o e "i%e i' the %i2 0& p ob"e% fo hi f&the 31 bec&uethey e8ui ed & %uch hi#he 4i"' te%pe &tu e 0&'d the efo e %o e fue"3 &'d bec&u e the

e u"ti'# c"i'4e / & ve y h& d &'d &pid"y/ o e do / ' the %i"" to'e / hich / e e the o'"y

&v&i"&b"e #i'di'# tech'o"o#y o f the ti%e. ! &'u f&ctu i'# co t / e e the efo e co' ide &b"

hi#he 1 but the p oduct et e& o'&b"y "o/ "y &'d deve"oped t e'#th 8uic4"y1 thu ope'i'#

up & %&4et fo u e i' co'c ete. The u e o f co'c ete i' co' t uctio' # e/ &pid"yf o% @JF>

o' / &d 1 &'d / & oo' the do%i'&'t u e fo ce%e't . Thu Po t"&'d ce%e't be#&' itp edo%i'&'t o"e. it i %&def o% / &te &'d &'d

Type of %ode ' ce%e't

Po t"&'d ce%e't

Ce%e't i %&de by he&ti'# "i%e to'e 0c&"ciu% c&bo'&te 31/ ith %&"" 8u&'titie o f othe

%&te i&" 0 uch & c"&y3 to @BF> C i' & 4i"'1 i' & p oce 4'o / ' & c&"ci'&tio'1 / he eby &

%o"ecu"e of c& bo' dio2ide i "ibe &ted f o% the c&"ciu% c& bo'&te to fo % c&"ciu%

o2ide1 o "i%e1/ hich i the' b"e'ded / ith the othe %&te i&" th&t h&ve bee' i'c"uded i'

the %i2 . The e u"ti'# h& d ub t&'ce1 c&""ed Kc"i'4e K1 i the' # ou'd / ith & %&""

&%ou't o f #yp u% i'to & po / de to %&4e KOdi'& y Po t"&'d Ce%e't K1 the %o t

co%%o'"y u ed type o f ce%e't 0ofte' efe ed to & OPC3.

Po t"&'d ce%e't i & b&ic i'# edie't o f co'c ete1 %o t& &'d %o t 'o' ; peci&"ity # out.

The %o t co%%o' u e fo Po t"&'d ce%e't i i' the p oductio' o f co'c ete. Co'c ete i &co%po ite %&te i&" co' i ti'# o f # e#&te 0# &ve" &'d &'d31 ce%e't1 &'d / &te . A &

co' t uctio' %&te i&"1 co'c ete c&' be c& t i' &"%o t &'y h&pe de i ed1 &'d o'ce

h&de'ed1 c&' beco%e & t uctu &"0"o&d be&i'# 3 e"e%e't. Po t"&'d ce%e't %&y be # &y o

/ hite.14


15/74

MITS-ANGALLU

Po t"&'d ce%e't b"e'd

The e & e o fte' &v&i"&b"e & i'te ;# ou'd %i2tu e f o% ce%e't %&'u f&ctu e 1 but i%i"&

fo %u"&tio' &e o fte' &" o %i2ed f o% the # ou'd co%po'e't &t the co'c ete %i2i'#

p"&'t. P%/$ *& *#$.! / &*c' c' , ' &$ co't&i' up to 9> # ou'd # &'u"&ted b"&t fu '&ce

"/ ith the e t Po t"&'d c"i'4e &'d & "itt"e #yp u%. A"" co%po itio' p oduce hi#hu"ti%&te t e'#th1 but & " co'te't i i'c e& ed1 e&"y t e'#th i educed1 / hi"e u"f&t

e i t&'ce i'c e& e &'d he&t evo"utio' di%i'i he . U ed & &' eco'o%ic &"te '&tive to

Po t"&'d u"f&te; e i ti'# &'d "o /; he&t ce%e't .

P%/$ *& . +*#9 c' , ' &$ co't&i' up to > f"y &h. The f"y &h i po55o"&'ic1 o th&t

u"ti%&te t e'#th i %&i't&i'ed. ,ec&u e f"y &h &dditio' &""o/ & "o/ e co'c ete / &te

co'te't1 e& "y t e'#th c&' &" o be %&i't&i'ed. +he e #ood 8u&"ity che&p f"y &h i&v&i"&b"e1 thi c&' be &' eco'o%ic &"te '&tive to o di'& y Po t"&'d ce%e't.

P%/$ *& %;;% *& c' , ' &$ i'c"ude f"y &h ce%e't1 i'ce f"y &h i & po55o"&'1 but &"o

i'c"ude ce%e't %&de f o% othe '&tu &" o &tifici&" po55o"&' . I' cou't ie / he e

vo"c&'ic & he &e &v&i"&b"e0e.#. It&"y1 Chi"e1! e2ico1 the Phi"ippi'e 3 the e ce%e't &e

ofte' the %o t co%%o' fo % i' u e.

P%/$ *& #" "c* .!, ' c' , ' &$. Additio' o f i"ic& fu%e c&' yie"d e2ceptio'&""y hi#h

t e'#th 1 &'d ce%e't co't&i'i'# F ;=> i"ic& fu%e & e occ& io'&""y p oduced.

- o/ eve 1 i"ic&fu%e i %o e u u&""y &dded toPo t"&'d ce%e't &t the co'c ete %i2e .

M* #%&/+ c' , ' &$# &e u ed fo p ep& i'# b ic4"&yi'# %o t& &'d tucco 1 &'d %u t 'ot be

u ed i' co'c ete. They & e u u&""y co%p"e2 p op iet& y fo %u"&tio' co't&i'i'# Po t"&'d

c"i'4e &'d & 'u%be of othe i'# edie't th&t %&y i'c"ude "i%e to'e1 hyd &ted "i%e1 &

e't &i'e 1 et& de 1 / &te p oofe &'d co"o i'# e't . They & e fo %u"&ted to yie"d/ o 4&b"e %o t& th&t &""o/ &pid &'d co' i te't %& o' y / o 4. Subt"e v& i&tio' o f

! &o' y ce%e't i' the US &e P"&tic Ce%e't &'d Stucco Ce%e't . The e & e de i#'ed to

p oduce co't o""ed bo'd / ith %& o' y b"oc4 .

E *"(' c' , ' &$# co't&i'1 i' &dditio' to Po t"&'d c"i'4e 1 e2p&' ive c"i'4e 0u u&""y15


16/74

MITS-ANGALLU

u"fo&"u%i'&te c"i'4e 31 &'d &e de i#'ed to o ff et the e ffect o f d yi'# h i'4e th&t i

'o %&""y e'cou'te ed / ith hyd &u"ic ce%e't . Thi &""o/ "e f"oo "&b 0up to M> %

8u& e3 to be p ep& ed / ithout co't &ctio' joi't .

< 9"$' '& ' c' , ' &$# %&y be %&de u i'# / hite c"i'4e &'d / hite upp"e%e't& y

%&te i&" uch & hi#h ;pu ity %et&4&o"i'.C% %/' c' , ' &$# &e u ed fo deco &tive pu po e . I' o%e t&'d& d 1 the &dditio' o f

pi#%e't to p oduce co"o ed Po t"&'d ce%e't i &""o/ ed. I' othe t&'d& d 0e.#.

AST!3 1 pi#%e't & e 'ot &""o/ ed co' titue't o f Po t"&'d ce%e't1 &'d co"o ed ce%e't

&e o"d & b"e'ded hyd &u"ic ce%e't .

'/+ . "&' + )/% !& c' , ' &$# &e %&de f o% %i2tu e of ce%e't / ith &'d o / ith " o

othe po55o"&' type %i'e &" / hich & e e2t e%e"y fi'e"y # ou'd to#ethe . Such ce%e'tc&' h&ve the &%e phy ic&" ch&&cte i tic & 'o %&" ce%e't but / ith F> "e ce%e't

p&ticu"& "y due to thei i'c e& ed u f&ce &e& fo the che%ic&" e&ctio'. Eve' / ith

i'te' ive # i'di'# they c&' u e up to F> "e e'e #y to f&b ic&te th&' o di'& y Po t"&'d

ce%e't .

No' ;P o t"&'d hyd &u"ic ce%e't

P%;;!% "- ", ' c' , ' &$# ! i2tu e of # ou'd po55o"&' &'d "i%e & e the ce%e't u ed by

the Ro%&' 1 &'d &e to be fou'd i' Ro%&' t uctu e ti"" t&'di'# 0e.#. the P&'theo' i'

Ro%e 3. They deve"op t e'#th "o/ "y1 but thei u"ti%&te t e'#th c&' be ve y hi#h. The

hyd &tio' p oduct th&t p oduce t e'#th & e e e'ti&""y the &%e & tho e p oduced by

Po t"&'d ce%e't. S *)- ", ' c' , ' &$# G ou'd # &'u"&ted b"&t fu '&ce " i 'ot

hyd &u"ic o' it o/ '1 but i &ctiv&ted by &dditio' o f &"4&"i1 %o t eco'o%ic&""y u i'#

"i%e. They & e i%i"& to po55o"&' "i%e ce%e't i' thei p ope tie . O'"y # &'u"&ted "

0i.e. / &te ;8ue'ched1 #"& y " i effective & & ce%e't co%po'e't.

S! '/ #! . *$' c' , ' &$# The e co't&i' &bout J> # ou'd # &'u"&ted b"&t fu '&ce "

@F #yp u% o &'hyd ite &'d & "itt"e Po t"&'d c"i'4e o "i%e & &' &ctiv&to. They

16


17/74

MITS-ANGALLU

p oduce t e'#th by fo %&tio' o f ett i'#ite1 / ith t e'#th # o/ th i%i"& to & "o/

Po t"&'d ce%e't. They e2hibit #ood e i t&'ce to # e ive e't 1 i'c"udi'# u"f&te.2 21 2 7

C* c"!, * !, "&*$' c' , ' &$# &e hyd &u"ic ce%e't %&de p i%&i"y f o% "i%e to'e &'d

b&u2ite. The &ctive i'# edie't &e %o'oc&"ciu% &"u%i'&te C&A" OB 0C&O < A" O o C A

i' Ce%e't che%i t 'ot&tio'1 CC N3 &'d %&ye'ite C&@=

A"B

O 0@= C&O < 9 A" O

1 o

C@=

A i' CC N3. St e'#th fo % by hyd &tio' to c&"ciu% &"u%i'&te hyd &te . They & e

/ e"";&d&ptedfo u e i' ef &cto y 0hi#h ;te%pe &tu e e i t&'t 3 co'c ete 1 e.#. fo fu '&ce

"i'i'# .

C* c"!, #! . %*!, "&*$' c' , ' &$# &e %&de f o% c"i'4e th&t i'c"ude ye Ke"i%ite3

0C&B

0A"O=

3M

SOB

o CB

Ai' Ce%e't che%i tK 'ot&tio' 3 & & p i%&y ph& e. They & e u ed

i' e2p&' ive ce%e't 1 i' u"t &;hi#h e& "y t e'#th ce%e't 1 &'d i' "o/; e'e #y ce%e't .

- yd &tio' p oduce ett i'#ite1 &'d peci&"i5ed phy ic&" pope tie 0 uch & e2p&' io' o

&pid e&ctio' 3 &e2

obt&i'ed by &dju t%e't o f the &v&i"&bi"ity of c&"ciu% &'d u"f&te io' . Thei u e & & "o/;

e'e #y &"te '&tive to Po t"&'d ce%e't h& bee' pio'ee ed i' Chi'&1 / he e eve &" %i""io

to''e pe ye& &e p oduced. E'e #y e8ui e%e't &e "o/ e bec&u e o f the "o / e 4i"'

te%pe &tu e e8ui ed fo e&ctio'1 &'d the "o / e &%ou't o f "i%e to'e 0/ hich %u t be

e'dothe %ic&""y dec&bo'&ted 3 i' the %i2. I' &dditio'1 the "o / e "i%e to'e co'te't &'d

"o/ e fue" co' u%ptio' "e&d to & CO=

e%i io' & ou'd h&" f th&t & oci&ted / ith Po t"&'d

c"i'4e . - o/ eve 1SO e%i io' &e u u&""y i#'i fic&'t"y hi#he .

=N*$! /* = C ' , ' &$# co e po'd to ce t&i' ce%e't of the p e;Po t"&'d e &1 poduced by

bu 'i'# & #i""&ceou "i%e to'e &t %ode &te te%pe &tu e . The "eve" o f c"&y co%po'e't i'

17


18/74

MITS-ANGALLU

the "i%e to'e 0&ou'd > ; F 3 i uch th&t "e &%ou't o f be"ite 0the "o/; e&"y t e'#th1

hi#h ;"&te t e'#th %i'e &" i' Po t"&'d ce%e't 3 &e fo %ed / ithout the fo %&tio' o f

e2ce ive &%ou't of f ee "i%e. A / ith &'y '&tu &" %&tei&"1 uch ce%e't h&ve hi#h"y

v&i&b"e p ope tie .

G'% % +, '/ c' , ' &$# & e %&de f o% %i2tu e o f / &te ; o"ub"e &"4&"i %et&"i"ic&te&'d &"u%i'o i"ic&te %i'e &" po/ de uch & f"y &h &'d %et&4&o"i'.

COMPANY PRO ILE

I$* c','&$" G/%! H"#$%/+

u& i Ce%e't i p& t of the It&"ce%e'ti G oup1 the fifth "& #e t ce%e't p oduce i' the

/o "d &'d the bi##e t i' the !edite &'e&' e#io'. +ith 'et &"e of &bout F bi""io' Eu o i'

=>@> &'d & c&p&city of 9> %i""io' to''e . It&"ce%e'ti G oup co%bi'e the e2pe ti e1 4'o/;

-o/ &'d cu"tu e of & 'u%be of co%p&'ie f o% %o e th&' == cou't ie i' B co'ti'e't . Thi

I'c"ude &' i'du t i&" 'et/o 4 of F? ce%e't p"&'t 1 @@ # i'di'# ce't e 1 F te %i'&" 1 ?>

A## e#&te 8u& ie &'d F> co'c ete b&tchi'# u'it . I' I'di&1 /ith it i'he e't t e'#th 1

18


19/74

MITS-ANGALLU

It&"ce%e'ti G oupK u& i Ce%e't i co%%itted to #ive the bui"di'# i'du t y ce%e't th&t i

T u"y i'te '&tio'&".

A & %e%be of the +o "d ,u i'e Cou'ci" fo Su t&i'&b"e Deve"op%e't 0+,CSD3

It&"ce%e'ti G oup h& i#'ed the Ce%e't Su t&i'&bi"ity I'iti&tive A#e'd& fo Actio'1 the

)i t fo %&" co%%it%e't th&t bi'd & 'u%be of /o "d ce%e't i'du t y "e&de to &' &ctio'

P"&' th&t &i% &t &ti fyi'# p e e't;d&y 'eed &t the &%e ti%e & &fe#u& di'# the

Re8ui e%e't of futu e #e'e &tio' .

It&"ce%e'ti h& bee' eco'fi %ed i' QThe Su t&i'&bi"ity (e& boo4 =>@@ ; the %o t

Co%p ehe' ive pub"ic&tio' o' co po &te u t&i'&bi"ity e"e& ed ye& "y by SA! 0Su t&i'&b"e

A et !&'e%e't3.I' =>@>1 &bout =1F>> co%p&'ie be"o'#i'# to FJ ecto h&ve bee'

A e ed fo thei u t&i'&bi"ity pe fo %&'ce &'d o'"y the top @F & e e'tit"ed to be i'c"uded

O' the Su t&i'&bi"ity (e& boo4. It&"ce%e'ti h& bee' &/& ded SA! Si"ve C"& .

A co%%it%e't to cu to%e &ti f&ctio' h& ee' u& i Ce%e't # o/ f o% & %ode t

>.F %i""io' to''e c&p&city i' @??F to M.> %i""io' to''e i' =>@@. I' =>@>1 /e h&ve e2p&'ded

The p oductio' c&p&city &t ou ye u't"& p"&'t by i' t&""i'# & eco'd bu 'i'# "i'e /ith &

De i#'ed p oductio' c&p&city of =. %i""io' to' of ce%e't pe ye& &'d &dopti'# top;of;

19


20/74

MITS-ANGALLU

&'#e tech'ic&" o"utio' /ith & p& ticu"& focu o' e'e #y pe fo %&'ce. ,y thi the

P oductio' i &"%o t doub"ed &'d & # i'di'# ce'te &t Che''&i of @ %i""io' to' c&p&city /&

Co%%i io'ed i' !&y =>@@. A c&ptive po/e p"&'t /ith & c&p&city of B !+ h&

&" e&dy,ee' et up &t the Co%p&'yK ce%e't %&'uf&ctu i'# f&ci"ity &t Sit&pu &%.Ou %&'uf&ctu i'#

U'it &t (e u't"& &'d Sit&pu &% & e ISO C'/$"."' u'it &'d %&i't&i' the hi#he t 8u&"ity

St&'d& d i' "i'e /ith the #"ob&" 8u&"ity po"icy

+ith ove F %& 4et h& e i' the outh I'di&' ce%e't %& 4et &'d &"e of &bout Eu o @M

%i""io' i' =>@>1 u& i Ce%e't h& ch&"4ed out &%bitiou p"&' fo the futu e. Thi

i'c"ude t e'#the'i'# it p e e'ce i' the !&h& & ht &1 O i & &'d +e t ,e'#&"

%& 4et . +hi"e tech'o"o#y i ju t o'e of it t e'#th 1 the e & e %&'y othe f&cto th&

co't ibute e8u&""y to u& iK ucce . The e i'c"ude & hi#h;"eve" o #&'i5&tio' &'d

dece't &"i5ed 8u&"ity & u &'ce te&% to #u& &'tee the fu"" co%p"i&'ce /ith the cu to%e

e2pect&tio' . St o'# fou'd&tio' fo & co%p&'y of t e'#th.

u& i e'te ed the Ce%e't bu i'e i' @??B to ope &te the Te2%&co Ce%e't P"&'t. I'

@??F1 Te2%&co P"&'t &t (e u't"& /& t&4e' ove by u& i &'d & Ce%e't Divi io' /&

)o %ed. The f"ed#i'# u'it c&%e i'to it o/' i' the ye& =>>@ /he' u& i I'du t ie e'te ed

I'to & Loi't *e'tu e /ith the It&"ce%e'ti G oup1 the Fth "& #e t p oduce of Ce%e't i' the

+o "d 1 u& i Ce%e't $i%ited /& bo '. u& i Ce%e't too4 ove S i *i h'u Ce%e't $i%ited

I' =>>=. Tod&y1 the Co%p&'y i &%o'# t the top%o t ce%e't p oduce i' South I'di&.

20


21/74

MITS-ANGALLU

!*/" *& I$* c','&$"7 T9' #$/'&)$9 %. $>%7

u& i Ce%e't i o'e of the "e&di'# ce%e't p oduce i' South I'di&.A fu""y o/'ed ub idi& y

of the It&"ce%e'ti G oup1 Co%%it%e't to cu to%e &ti f&ctio' h& ee' u& i Ce%e't # o/

) o% & %ode t >.F %i""io' to''e c&p&city i' @??F to &"%o t M %i""io' to' i' =>@>1&'d

E& 'ed & p"&ce &%o'# the %o t e"i&b"e ce%e't p oduce i' the cou't y.

)ou'ded i' @JMB1 It&"ce%e'ti /& 8uoted fo the fi t ti%e o' the toc4 %& 4et 1 &t the

!i"&' Stoc4 E2ch&'#e1 i' @?=F1 u'de the '&%e of Societ&" ,e #&%& c& pe "& )&bb ic&5io'e

De" Ce%e't e De""& C&"ce Id &u"ic& &'d h& bee' ope &ti'# i'ce @?=9 u'de the '&%e of

It&"ce%e'ti Sp&.

Th&'4 to & c& efu" p"&' of i've t%e't &'d t&4e;ove of othe ce%e't p oduce 1 the

Co%p&'y e2p&'ded1 8uic4"y e&chi'# & t o'# po itio' o' the %& 4et &'d beco%i'#

the$e&di'# ce%e't %&'uf&ctu e i' It&"y.

Afte eve &" &c8ui itio' &b o&d1 i' @??= It&"ce%e'ti &chieved i%po t&'t

I'te '&tio'&" t&tu /ith it t&4e;ove of Ci%e't ) &' &i 1 o'e of the %&i' #"ob&" ce%e't

P oduce .

I' @??9 It&"ce%e'ti co' o"id&ted it ve tic&"i &tio' t &te#y /ith the &c8ui itio' of

C&"ce t u55i1 thu beco%i'# It&"i&' "e&de i' the e&dy;%i2ed co'c ete ecto .

I' !& ch @??91 &"" the i'te '&tio'&" co%p&'ie of the G oup #&the ed u'de o'e i'#"e

Co po &te ide'tity.21


22/74

MITS-ANGALLU

Si'ce @??J It&"ce%e'ti G oup h& bee' pu ui'# it i'te '&tio'&"i5&tio' t &te#y by

Ac8ui i'# 'e/ ce%e't /o 4 i' ,u"#& i&1 &5&4h t&'1 Th&i"&'d1 !o occo1 I'di&1 E#ypt &'d

The U'ited St&te .

+ith & M %& 4et h& e i' the outh I'di&' ce%e't %& 4et &'d &"e of &bout Eu o

@JJ %i""io' i' =>>?1 u& i Ce%e't h& ch&"4ed out &%bitiou p"&' fo the futu e. Thi

I'c"ude t e'#the'i'# it p e e'ce i' the !&h& & ht &1 O i & &'d +e t ,e'#&" %& 4et .

+hi"e tech'o"o#y i ju t o'e of it t e'#th 1 the e & e %&'y othe f&cto th&t co't ibute

e8u&""y to u& iK ucce . The e i'c"ude & hi#h;"eve" o #&'i5&tio' &'d dece't &"i5ed 8u&"ity

A u &'ce te&% to #u& &'tee the fu"" co%p"i&'ce /ith the cu to%e K e2pect&tio' .

Th&'4 to & c& efu" p"&' of i've t%e't &'d t&4e;ove of othe ce%e't p oduce 1 the

Co%p&'y e2p&'ded1 8uic4"y e&chi'# & t o'# po itio' o' the %& 4et &'d beco%i'# the

$e&di'# ce%e't %&'uf&ctu e i' It&"y.

Afte eve &" &c8ui itio' &b o&d1 i' @??= It&"ce%e'ti &chieved i%po t&'t

I'te '&tio'&" t&tu /ith it t&4e;ove of Ce%e't ) &' oi 1 o'e of the %&i' #"ob&" ce%e't

P oduce .

I' @??9 It&"ce%e'ti co' o"id&ted it ve tic&"i &tio' t &te#y /ith the &c8ui itio' of

C&"ce t u55i1 thu beco%i'# It&"i&' "e&de i' the e&dy;%i2ed co'c ete ecto .

I' !& ch @??91 &"" the i'te '&tio'&" co%p&'ie of the G oup #&the ed u'de o'e 22


23/74

MITS-ANGALLU

i'#"e

Co po &te ide'tity.

Si'ce @??J It&"ce%e'ti G oup h& bee' pu ui'# it i'te '&tio'&"i5&tio' t &te#y by

Ac8ui i'# 'e/ ce%e't /o 4 i' ,u"#& i&1 &5&4h t&'1 Th&i"&'d1 !o occo1 I'di&1 E#ypt &'d

The U'ited St&te .

M*&*)','&$:

+hi"e p ofe io'&" %&'e%e't &'d 8u&"ity /o 4fo ce e' u e upe io e u"t 1 the

Ro"e p"&yed by the co e %&'e%e't hou"d 'ot be di cou'ted. +ith thei vi io'

&'dE2pe ie'ce1 they %&4e u e th&t u& i Ce%e't %ove i' the i#ht di ectio'. To/& d

,eco%i'# o'e &%o'# the "e&di'# ce%e't p oduce i' I'di&.

The P& e't Co%p&'y1 It&"ce%e'ti S.p.A.1 i o'e of It&"y @> "& #e t i'du t i&"

Co%p&'ie &'d i i'c"uded i' S P7!I, I'de2 of the It&"i&' Stoc4 E2ch&'#e.

It&"ce%e'ti G oup co%p&'ie co%bi'e the e2pe ti e1 4'o/ho / &'d cu"tu e of 22

C%!&$/"'# i' B Co'ti'e't bo& ti'# &' i'du t i&" 'et/o 4 of 63 c','&$ *&$#1 13 )/"& "&)

C'&$'/#? 5 $'/,"&* # 1 125 *))/')*$'# !*//"'# &'d 614 c%&c/'$' *$c9"&) !&"$# i' =>@@ the

G oup h&d #* '# &%ou'ti'# to &"%o t J bi""io' Eu o.

It&"ce%e'ti1 fou'ded i' @JMB1 &chieved i%po t&'t i'te '&tio'&" t&tu /ith the t&4e;

Ove of Ce%e't ) &' &i i'.@??= )o""o/i'# & pe iod of e;o #&'i5&tio' &'d i'te# &tio'th&t

Cu"%i'&te i' the &doptio' of & i'#"e co po &te ide'tity fo &"" G oup ub idi& ie 1 the

23


24/74

MITS-ANGALLU

'e/"y;

,o ' It&"ce%e'ti G oup be#&' to dive ify #eo# &phic&""y th ou#h & e ie of &c8ui itio' i'

E%e #i'# cou't ie uch & ,u"#& i&1 !o occo1 &5&4h t&'1 Th&i"&'d &'d I'di&1 & /e"" &

Ope &ti'# i' No th A%e ic&. A p& t of the p"&' to fu the e'h&'ce it p e e'ce i' the

!edite &'e&' & e&1 i' =>>F the G oup boo ted it i've t%e't i' E#ypt beco%i'# the %& 4et

$e&de

I' =>>9 It&"ce%e'ti &c8ui ed fu"" co't o" of the &ctivitie i' I'di& &'d i#'ed &'

A# ee%e't to t e'#the' it po itio' i' &5&4h t&' /hi"e1 i' =>>J1 it fu the t e'#the'ed it

P e e'ce i' A i& &'d the !idd"e E& t th ou#h the ope &tio' i' Chi'&1 u/&it1 S&udi A &bi&.

I' =>>? the G oup i#'ed & joi't ve'tu e i' $iby& to bui"d & B %i""io' to' 7ye& ce%e't p"&'t.

A & %e%be of the +o "d ,u i'e Cou'ci" fo S!#$*"&* ' D'(' % ,'&$

0+,CSD3 It&"ce%e'ti G oup h& i#'ed the Ce%e't Su t&i'&bi"ity I'iti&tive A#e'd& fo

Actio'1 the fi t fo %&" co%%it%e't th&t bi'd & 'u%be of /o "d ce%e't i'du t y "e&de to

A' &ctio' p"&' th&t &i% &t &ti fyi'# p e e't;d&y 'eed &t the &%e ti%e & &fe#u& di'# the

Re8ui e%e't of futu e #e'e &tio' . To fu the co'fi % it co%%it%e't o' the e i ue 1 the

G oup h& t&4e' ove the co;Ch&i %&' hip of the Ce%e't Su t&i'&bi"ity I'iti&tive fo the

Pe iod =>>9;=>>J.

O!/ P/% !c$# Ce%e't fo eve y 4i'd of t& 4 u& i Ce%e't %&'uf&ctu e &'d

24


25/74

MITS-ANGALLU

Di t ibute it o/' %&i' p oduct "i'e of ce%e't .+e &i% to opti%i5e p oductio' &c o &"" of

Ou %& 4et 1 p ovidi'# & co%p"ete o"utio' fo cu to%e K 'eed &t the "o/e t po ib"e co t1

A' &pp o&ch /e c&"" t &te#ic i'te# &tio' of &ctivitie . Ce%e't i %&de f o% & %i2tu e

of J> Pe ce't "i%e to'e &'d => pe ce't &dditive . The e & e c u hed &'d # ou'd to p ovide the

&/

!e&" 1 & p&"e1 f"ou ;"i4e po/de . -e&ted to & ou'd @BF> C 0=MB= )3 i' ot&ti'# 4i"' 1the

!e&" u'de #oe co%p"e2 che%ic&" ch&'#e &'d i t &' fo %ed i'to c"i'4e . )i'e;# i'di'#

The c"i'4e to#ethe /ith & %&"" 8u&'tity of #yp u% p oduce ce%e't. Addi'# otheCo' titue't &t thi te p oduce ce%e't fo peci&"i5ed u e .

B ' & ' C ' , ' & $# :

!*/" B '& ' C','&$ $9' 'c%-./"'& +? !#'/-./"'& + c','&$ :

u& i ,"e'ded Ce%e't h& bee' deve"oped i' e po' e to tod&y 'eed fo

E'vi o'%e't;f ie'd"y p oduct th&t & e co t;effective1 du &b"e &'d h&ve %i'i%&" by;p oduct .

Du &bi"ity i & ve y i%po t&'t p ope ty i' co'c ete. A'd du &bi"ity he e %e&'

Co'c ete th&t e' u e the "o'# "ife p&' of t uctu e "i4e ho%e &'d e ide'ce th&t & e

$ifeti%e i've t%e't . Si'ce di t e of co'c ete &'d e& "y f&i"u e of t uctu e i &

co%%o'Phe'o%e'o'1 e e& ch ove & pe iod of ti%e he"ped deve"op v& iou e%edi&" %e& u e th&t

I%p oved du &bi"ity &'d co t eco'o%ic . O'e of the% bei'# b"e'ded Po t"&'d ce%e't1 /ith

Co%p"e%e't& y po55o"&'ic &'d ce%e'titiou %&te i&" "i4e f"y & h1 b"& t fu '&ce " 25


26/74

MITS-ANGALLU

etc.

A'd u& i ,"e'ded Ce%e't i & fi'e e2&%p"e of it.

P%/$ *& c','&$u& i OPC i hi#h 8u&"ity ce%e't p ep& ed f o% the fi'e t &/ %&te i&". O/i'#

to

Opti%u% /&te de%&'d1 it co't ibute to & ve y "o/ co;efficie't of pe %e&bi"ity of the

Co'c ete p ep& ed. Thi i%p ove the de' ity of the co'c ete %&t i2 &'d i'c e& e the

Du &bi"ity of the co'c ete. u& i OPC i & hi#h pe fo %&'ce ce%e't f& e2ceedi'# the cod&"

Re8ui e%e't of ,IS.

It i thi ve y du &bi"ity th&t t &' "&te i'to "o'# ; "& ti'# e ide'ti&" &'d co%%e ci&"

Co' t uctio' of /ide &'#e of v& iety. !*/"@# ' )':- +ith the e u'i8ue &dv&'te 1 u& i

Ce%e't co%e to you i' t/o # &de ; B G &de OPC &'d F G &de OPC.

u& i OPC i & hi#h 8u&"ity ce%e't p ep& ed f o% the fi'e t &/ %&te i&". O/i'# to

Opti%u% /&te de%&'d1 it co't ibute to & ve y "o/ co;efficie't of pe %e&bi"ity of the

Co'c ete p ep& ed. Thi i%p ove the de' ity of the co'c ete %&t i2 &'d i'c e& e the

Du &bi"ity of the co'c ete. u& i OPC i & hi#h pe fo %&'ce ce%e't f& e2ceedi'# the cod&"

Re8ui e%e't of ,IS.

It i thi ve y du &bi"ity th&t t &' "&te i'to "o'# ; "& ti'# e ide'ti&" &'d co%%e ci&"

Co' t uctio' of & /ide v& iety

!*/" 43 8 53 G/* ' O/ "&*/+ P%/$ *& c','&$ OPC - S$/%&) c','&$# .%/ %&)-

26


27/74

MITS-ANGALLU

L*#$"&) c%$/!c$"%

-i#he co%p e ive t e'#th

,ette ou'd'e

$e e co' u%ptio' of ce%e't fo !;=> # &de co'c ete &'d &bove

)& te de hutte i'# of fo % /o 4

Reduced co' t uctio' ti%e

P i%o Co'c ete Ce%e't ; Co'c ete Redefi'ed

P/",% - T9' #!cc'## #$%/+: I' =>>J u& i Ce%e't "&u'ched it hi#h; t e'#th ce%e't u'de

The b &'d '&%e P/",% C%&c/'$' C','&$ i' ,&'#&"o e City. P/",% i%p ove the

de' ityOf the co'c ete %&t i2 &'d i'c e& e the du &bi"ity of the co'c ete1 %&4i'# it &' i%%edi&te hit

A%o'# co' t uctio' &'d i'f & t uctu e p oject u'de t&4e' i' &'d & ou'd ,&'#&"o e.

Rece't"y P i%o /& &" o "&u'ched i' ochi &'d Che''&i. A' e2te' ive %& 4eti'# &'d

Di t ibutio' 'et/o 4 &c o outh I'di& co'c ete u& i Ce%e'tK ucce .

Ne/ p oduct 1 o'

The "i'e of the e2t e%e"y ucce fu" P/",% "&u'ch1 /i"" p"&y & i#'ific&'t o"e i' 4ey

!& 4et . P/",% C%&c/'$' C','&$ - C%&c/'$' R' '."&' P i%o co'c ete ce%e't i & hi#h 8u&"ity

Ce%e't p ep& ed f o% the fi'e t &/ %&te i&". O/i'# to opti%u% /&te de%&'d1

itCo't ibute to & ve y "o/ co;efficie't of pe %e&bi"ity of the co'c ete p ep& ed. Thi i%p ove

The de' ity of the co'c ete %&t i2 &'d i'c e& e the du &bi"ity of the co'c ete. P i%o i &hi#h

Pe fo %&'ce ce%e't f& e2ceedi'# the cod&" e8ui e%e't of IS @==M?;@?J9. It i thi 27


28/74

MITS-ANGALLU

ve y

Du &bi"ity th&t t &' "&te i'to "o'#;"& ti'# e ide'ti&" &'d co%%e ci&" co' t uctio' of & /ide

*& iety1 uch & d&% 1 c&'&" 1 hi#h/&y 1 o&d &'d f"yove .

-i#he co%p e ive t e'#th

,ette ou'd'e

$e e co' u%ptio' of ce%e't fo !;=> Co'c ete # &de &'d &bove

)& te de hutte i'# of fo % /o 4 .

Reduced co' t uctio' ti%e.

D"/'c$%/#:

! . L. N. Godbo"e1 ! . D.,. E'#i'ee &'d ! . S. . Podd& eti e by ot&tio' &t the fo thco%i'#

A''u&" Ge'e &" !eeti'# &'d & e e"i#ib"e fo e;&ppoi't%e't. The e u%e &'d det&i" of othe

di ecto hip &'d co%%ittee %e%be hip of ! . L. N. Godbo"e1 ! . D. ,. E'#i'ee &'d ! . S.

. Podd& 1 & e #ive' i' A&&' !/' C to thi epo t.

! . S. P. Tyi1 ! . A u' Du##&" &'d ! . Shy&% ,h& ti& e i#'ed & Di ecto of the

Co%p&'y o' @Mth )eb u& y1 =>@ 1 @ t !& ch1 =>@ &'d =?th Ap i"1 =>@ 1 e pective"y. Th

,o& d p"&ce o' eco d it &pp eci&tio' &'d i'v&"u&b"e co't ibutio' by ! . Tyi1 ! .Du##&"

&'d ! . ,h& ti& to the Co%p&'y1 du i'# thei te'u e & Di ecto .

28


29/74

MITS-ANGALLU

/"#9&* S/"(*#$*(*

UARI CEMENT CEOF

RISHNA SRI ASTA A

*# ' '(*$' $% $9' %#"$"%& %. %/' '/"'&c' %. 38 +'*/# "& c','&$ *& c','&$ /' *$' "& !#$/"'# H' #$*/$' 9"# /%.'##"%&*c*/''/ >"$9 ACC L$ *& #'/(' *# 9'* %. (*/"%!# ' */$,'&$# "& $9' c%, *&+ # **c/%## $9' c%!&$/+ H' >*# CEO %. . *$ /% !c$ !#"&'## *$ E$'/&"$ E('/'#$ L$ '.%/'

,%("&) $% !*/" C','&$ "& 1 7 *# D"/'c$%/ M*/ '$"&)

CHAPTER-III

RE IE< O LITERATURE

29


30/74

MITS-ANGALLU

L"* " "$+ *& *##'$#:

$i&bi"ity &'d & et1 &"o 4'o / ' & & 'o' ;cu e't & et o & p ope ty1 p"&'t1 &'de8uip%e't 0PPUE 31 i & te % u ed i' &ccou'ti'# fo & et &'d p ope ty / hich c&''ot

e& i"y be co've ted i'to c& h. Thi c&' be co%p& ed / ith cu e't & et uch & c& h o

b&'4 &ccou't 1/ hich & e de c ibed & "i8uid & et . I' %o t c& e 1 o'"y t&'#ib"e & et &e

efe ed to & fi2ed.

! o eove 1 &fi2ed7'o' ;cu e't & et c&' &" o be de fi'ed & &' & et 'ot di ect"y o"d to &

fi %K co' u%e 7e'd ;u e . A &' e2&%p"e1 & b&4i'# fi %K cu e't & et / ou"d be it

i've'to y 0i' thi c& e1 f"ou 1 ye&t1 etc.31 the v&"ue of &"e o/ ed to the fi % vi& c edit

0i.e. debto o &ccou't eceiv&b"e31 c&h he"d i' the b&'41 etc. It 'o' ;cu e't & et

/ ou"d be the ove' u ed to b&4e b e&d1 %oto vehic"e u ed to t &' po t de"ive ie 1 c&h

e#i te u ed to h&'d"e c& h p&y%e't 1 etc. E&ch &fo e%e'tio'ed 'o' ;cu e't & et i 'ot

o"d di ect"y to co' u%e .

The e & e ite% of v&"ue/ hich the o #&'i5&tio' h& bou#ht &'d / i"" u e fo &' e2te'ded

pe iod o f ti%e $i&bi"itie &'d A et 'o %&""y i'c"ude ite% uch & "&'d &'d bui"di'#

%oto vehic"e 1 fu 'itu e1 office e8uip%e't1 co%pute 1 fi2tu e &'d fitti'# 1 &'d p"&'

&'d %&chi'e y. The e o fte' eceive f&vo &b"e t&2 te&t%e't 0dep eci&tio' &""o/ &'ce 3

ove ho t;te % & et . Acco di'# to I'te '&tio'&" Accou'ti'# St&'d& d 0IAS3 @M

$i&bi"itie &'d A et &e & et / ho e futu e eco'o%ic be'e fit i p ob&b"e to f"o/ i'to

the e'tity1 / ho e co t c&' be %e& u ed e"i&b"y.

It i pe ti'e't to 'ote th&t the co t of & $i&bi"ity &'d & et i it pu ch& e p ice1

i'c"udi'# i%po t dutie &'d othe deductib"e t &de di cou't &'d eb&te . I' &dditio'1

30


31/74

MITS-ANGALLU

co t &tt ibut&b"e to b i'#i'# &'d i' t&""i'# the & et i' it 'eeded "oc&tio' &'d the i'iti&"

e ti%&te of di %&'t"i'# &'d e%ovi'# the ite% i f they & e eve'tu&""y 'o "o'#e 'eeded o'

the "oc&tio'.

The p i%&y objective o f & bu i'e e'tity i to %&4e p ofit &'d i'c e& e the / e&"th of it

o/ 'e . I' the &tt&i'%e't o f thi objective it i e8ui ed th&t the %&'e%e't / i"

e2e ci e due c& e &'d di"i#e'ce i' &pp"yi'# the b& ic &ccou'ti'# co'cept o f ! &tchi'#

Co'cept . ! &tchi'# co'cept i i%p"y %&tchi'# the e2pe' e of & pe iod &i' t the

eve'ue of the &%e pe iod.

The u e o f & et i' the #e'e &tio' o f eve'ue i u u&""y %oe th&' & ye& ; th&t i "o'#

te %. It i the efo e ob"i#&to y th&t i' o de to &ccu &te"y dete %i'e the 'et i'co%e o

p ofit fo & pe iod dep eci&tio' i ch& #ed o' the tot&" v&"ue o f & et th&t co't ibuted to the

eve'ue fo the pe iod i' co' ide &tio' &'d ch& #e &i' t the &%e eve'ue o f the &%

pe iod. Thi i e e'ti&" i' the p ude't epo ti'# o f the 'et eve'ue fo the e'tity i' the

pe iod.

Net boo4 v&"ue o f &' & et i b& ic&""y the diffe e'ce bet / ee' the hi to ic&" co t of th&

& et &'d it & oci&ted dep eci&tio'. ) o% the fo e#oi'#1 it i &pp&e't th&t i' o de to

epo t & t ue &'d f&i po itio' o f the fi'&'ci&" ju i p ude'ce o f &' e'tity it i e"&t&b"e

eco d &'d epo t the v&"ue of $i&bi"itie &'d A et &t it 'et boo4 v&"ue. Ap&t f o% the

f&ct th&t it i e' h i'ed i' St&'d& d Accou'ti'# St&te%e't 0SAS3 &'d IAS @M th&t v&

of & et hou"d be c& ied &t the 'et boo4 v&"ue1 it i the be t / &y of co' ciou "y p e e'ti'#

the v&"ue of & et to the o / 'e of the bu i'e &'d pote'ti&" i've to .

D' /'c"*$"&) * L"* " "$+ *& *##'$#

Dep eci&tio' i 1 i%p"y put1 the e2pe' e #e'e &ted by the u e o f &' & et. It i the / e&

31


32/74

MITS-ANGALLU

&'d te& of &' & et o di%i'utio' i' the hi to ic&" v&"ue o/ i'# to u e. ) u the to thi i

i the co t of the & et "e &'y &"ve v&"ue ove it e ti%&ted u efu" "ife. It i &

e2pe' e bec&u e it i %&tched &i' t the eve'ue #e'e &ted th ou#h the u e o f the &%

& et. Dep eci&tio' i u u&""y p e&d ove the eco'o%ic u efu" "ife o f &' & et bec&u e it

i e#& ded & the co t of &' & et &b o bed ove it u efu" "ife. I'v& i&b"y thdep eci&tio' e2pe' e i ch& #ed &i' t the eve'ue #e'e &ted th ou#h the u e o f the

& et. The %ethod o f dep eci&tio' to be &dopted i be t "eft fo the %&'e%e't to

decide i' co' ide &tio' to the pecu"i& ity o f the bu i'e 1 p ev&i"i'# eco'o%ic

co'ditio' o f the & et &'d e2i ti'# &ccou'ti'# #uide"i'e &'d p i'cip"e & i%p"ied i' the

o #&'i5&tio'&" po"icie .

It i / o th 'oti'# th&t 'ot &"" $i&bi"itie &'d A et dep eci&te i' v&"ue ye& ;ove ;ye&$&'d &'d bui"di'# 1 fo e2&%p"e1 %&y ofte' i'c e& e i' v&"ue depe'di'# o' "oc&" e&";e t&te co'ditio' .

A "o'# ;te % t&'#ib"e piece o f p ope ty th&t &fi % o/ ' &'d u e i' the p oductio' o f it

i'co%e &'d i 'ot e2pected to be co' u%ed o co've ted i'to c& h &'y oo'e th&' &

"e&t o'e ye& K ti%e. $i&bi"itie &'d A et &e o%eti%e co""ective"y efe ed to &

p"&'t .

B* *&c' #9''$ - *cc%!&$"&) .%/ L"* " "$"'# *& A##'$#

I&$/% ! c$"%&

A' i%po t&'t di ti'ctio' i %&de i' &ccou'ti'# bet / ee' cu e't & et &'d $i&bi"itie&'d A et .

C! //' &$ *##' $# &e tho e th&t fo % p& t of the ci cu"&ti'# c&pit&" of & bu i'e . They & e

32


33/74

MITS-ANGALLU

ep"&ced f e8ue't"y o co've ted i'to c& h du i'# the cou e o f t &di'#. The %o t

co%%o' cu e't & et &e toc4 1 t &de debto 1 &'d c&h.

Co%p& e cu e't & et / ith $i&bi"itie &'d A et. A L"* " "$+ *& *##'$# i &' & et o f &

bu i'e "&$' & ' . %/ c%&$"&!"&) !# ' 1 &the th&' & ho t;te %1 te%po &y & et uch &

toc4 .

$i&bi"itie &'d A et %u t be c"& ified i' & co%p&'y K b&"&'ce heet & "&$*&)" '

$*&)" '? %/ "&(' #$, ' &$# E2&%p"e of i't&'#ib"e & et i'c"ude #ood / i""1 p&te't 1 &'d

t &de%&4 . E2&%p"e of t&'#ib"e $i&bi"itie &'d A et i'c"ude "&'d &'d bui"di'# 1 p"&

&'d %&chi'e y1 fi2tu e &'d fitti'# 1 %oto vehic"e &'d IT e8uip%e't.

H%> #9%! $9' c9*&)"&) (* ! ' %. * L"* " "$+ *& *##'$# ' /' . 'c$' "& * c%, *&+ #*cc%!&$#J

The be'e fit th&t & bu i'e obt&i' f o% & $i&bi"ity &'d & et e2te'd ove eve &" ye&) o e2&%p"e1 & co%p&'y %&y ue the &%e piece of p oductio' %&chi'e y fo %&'y ye&/ he e& & co%p&'y;o/ 'ed %oto c& u ed by & &"e%&' p ob&b"y h& & ho te u efu" "ife.

,y &ccepti'# th&t the "i fe o f & $i&bi"ity &'d & et i "i%ited1 the &ccou't of & bu i'e'eed to eco#'i5e the be'e fit of the $i&bi"ity &'d & et & it i co' u%ed ove eve &ye& .

Thi co' u%ptio' o f &$i&bi"ity &'d & et i efe ed to & ' /'c"* $"%&.

D ' . "&"$"%& %. ' /'c"* $"%&

) i'&'ci&" Repo ti'# St&'d& d @F 0cove i'# the &ccou'ti'# fo t&'#ib"e $i&bi"itie &'A et 3 defi'e dep eci&tio' & fo""o/ :

"the wea r ing out, us ing up, or othe r r eduction in the us eful econo m ic life of a tangible

Liability and assets whethe r a r is ing f r om us e, effluxion of tim e or obs ole s cence th r ough

eithe r change s in technology or dem and for good s and s er vices pr oduced by the a ss et.' 33


34/74

MITS-ANGALLU

A po tio' o f the be'e fit of the $i&bi"ity &'d & et / i"" be u ed up o co' u%ed i'

e&ch &ccou'ti'# pe iod o f it "ife i' o de to #e'e &te eve'ue. To c&"cu"&te p ofit fo &

pe iod1 it i 'ece &y to %&tch e2pe' e / ith the eve'ue they he"p e& '.

I' dete %i'i'# the e2pe' e fo & pe iod1 it i the efo e i%po t&'t to i'c"ude &'

&%ou't to ep e e't the co' u%ptio' o f $i&bi"itie &'d A et du i'# th&t pe iod 0th&t i

dep eci&tio' 3.

I' e e'ce1 dep eci&tio' i'vo"ve &""oc&ti'# the co t o f the $i&bi"ity &'d & et 0"e &'y

e idu&" v&"ue3 ove it u efu" "ife. To c&"cu"&te the dep eci&tio' ch& #e fo &' &ccou'ti'#

pe iod1 the fo""o/ i'# f&cto &e e"ev&'t:

; the co t of the $i&bi"ity &'d & et

; the 0e ti%&ted3 u efu" "ife o f the & et

; the 0e ti%&ted3 e idu&" v&"ue of the & et.

< 9*$ "# $9' /' '(* &$ c%#$ %. * L"* " "$+ *& *##'$#J

The co t of & $i&bi"ity &'d & et i'c"ude &"" &%ou't i'cu ed to &c8ui e the & et &'d

&'y &%ou't th&t c&' be di ect"y &tt ibut&b"e to b i'#i'# the & et i'to / o 4i'# co'ditio'.

Di ect"y &tt ibut&b"e co t %&y i'c"ude:

; De"ive y co t

; Co t & oci&ted / ith &c8ui i'# the & et uch & t&%p duty &'d i%po t dutie

; Co t of p ep& i'# the ite fo i' t&""&tio' of the & et; P ofe io'&" fee 1 uch & "e#&"fee &'d & chitect K fee

Note th&t #e'e &" ovehe&d co t o &d%i'i t &tio' co t / ou"d 'ot be i'c"uded & p&

of the tot&" co t of &$i&bi"ity &'d & et 0e.#. the co t of the f&cto y bui"di'# i' / hich the

& et i 4ept1 o the co t of the %&i'te'&'ce te&% / ho 4eep the & et i' #ood / o 4i'#34


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MITS-ANGALLU

co'ditio' 3

The co t of ub e8ue't e2pe'ditu e o' & $i&bi"ity &'d & et / i"" be &dded to the co t

of the & et p ovided th&t thi e2pe'ditu e e'h&'ce the be'e fit of the $i&bi"ity &'d

& et o e to e &'y be'e fit co' u%ed.

Thi %e&' th&t %&jo i%p ove%e't o & %&jo ove h&u" %&y be c&pit&"ied &'d i'c"uded

& p&t of the co t of the & et i' the &ccou't .

- o/ eve 1 the co t of ep&i o ove h&u" th&t &e c& ied out i%p"y to %&i't&i'

e2i ti'# pe fo %&'ce / i"" be t e&ted & e2pe' e of the &ccou'ti'# pe iod i' / hich the

/ o 4 i do'e1 &'d ch& #ed i' fu"" & &' e2pe' e i' th&t pe iod.

< 9*$ "# $9' U#' .! L". ' %. * L"* " "$+ *& *##'$#J

A' & et %&y be ee' & h&vi'# & phy ic&" "ife &'d &' eco'o%ic "i fe.

! o t $i&bi"itie &'d A et uffe phy ic&" dete io &tio' th ou#h u e &'d the p& e of

ti%e. A"thou#h c& e &'d %&i'te'&'ce %&y ucceed i' e2te'di'# the phy ic&" "ife o f &

& et1 typic&""y it / i""1 eve'tu&""y1 e&ch & co'ditio' / he e the be'e fit h&ve bee'

e2h&u ted.

- o/ eve 1 & bui'e %&y 'ot / i h to 4eep &' & et u'ti" the e'd o f it phy ic&" "ife. The e

%&y be & poi't / he' it beco%e u'eco'o%ic to co'ti'ue to u e the & et eve' thou#h

the e i ti"" o%e phy ic&" "ife "eft.

The eco'o%ic "i fe o f the & et / i"" be dete %i'ed by uch f&cto & tech'o"o#ic&"

p o# e &'d ch&'#e i' de%&'d. ) o pu po e of c&"cu"&ti'# dep eci&tio'1 it i the

e ti%&ted eco'o%ic "i fe &the th&' the pote'ti&" phy ic&" "ife o f the $i&bi"ity &'d & e

th&t i u ed.

35


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MITS-ANGALLU

< 9*$ * %!$ $9' R ' #" ! * * ! ' %. * L"* " "$+ *& *##'$#J

At the e'd o f the u efu" "ife o f & $i&bi"ity &'d & et the bu i'e / i"" di po e o f it &'d

&'y &%ou't eceived f o% the di po &" / i"" ep e e't it e idu&" v&"ue. Thi1 &i

%&y be difficu"t to e ti%&te i' p &ctice. - o/ eve 1 &' e ti%&te h& to be %&de. If it iu'"i4e"y to be & i#'i fic&'t &%ou't1 & e idu&" v&"ue of 5e o / i"" be & u%ed.

The co t of & $i&bi"ity &'d & et "e it e ti%&ted e idu&" v&"ue ep e e't the tot&

&%ou't to be dep eci&ted ove it e ti%&ted u efu" "ife.

L"* " "$+ *& *##'$# C%&$/% #

Thi ectio' co't&i' t/ o do5e' co't o" th&t c&' be &pp"ied to the &c8ui itio'1

v&"u&tio'1 &'d di po &" of $i&bi"itie &'d A et. Of thi # oup1 @ &e co' ide ed p i%&y

co't o" &'d & e i'c"uded i' the f"o/ ch& t i' fi#u e Sy te% o f $i&bi"ity &'d & e

Co't o" . The e%&i'i'# @@ co't o" eithe do 'ot fit i'to the v& iou $i&bi"ity &'d & e

t &' &ctio' f"o/ o &e co' ide ed eco'd& y co't o" th&t c&' bo" te the p i%&y

co't o" & 'eeded.

I' e e'ce1 the y te% o f co't o" fo &' & et &c8ui itio' e8ui e th&t i'iti&" fu'di'#

&pp ov&" co%e f o% the &''u&" bud#et1 & / e"" & &dditio'&" &ppov&" th ou#h & fo %&

c&pit&" i've t%e't fo % ju t p io to the &ctu&" &c8uiitio'. The e hou"d &" o be & po t

i' t&""&tio' &'&"yi of ho / &ctu&" poject e u"t co%p& ed to the e ti%&te ho/ ' i' the

o i#i'&" c&pit&" i've t%e't fo %. The 4ey co't o" u ed o'ce &' & et i i' t&""ed &e to

t it1 & i#' peci fic e po' ibi"ity fo it1 &'d e' u e th&t &'y & et t &' fe & e &pp oved

by the hippi'# &'d eceivi'# %&'e . ) i'&""y1 & et di po itio' co't o" c&""fo e#u"&

di po itio' evie / to e' u e th&t di po itio' occu / hi"e & et ti"" et&i' o%e e &"

v&"ue1 &fo %&" di po itio' &pp ov&" p oce 1 &'d p ope t &c4i'# o f &'y e u"ti'#

eceipt .

36


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MITS-ANGALLU

S+#$' , %. L"* " "$+ *& *##'$# C%&$/% #

37


38/74


39/74

MITS-ANGALLU

< Requi r e a s igned capital inve s t m ent app r oval form pr ior to pu r cha s e. Give'

the i#'i fic&'t &%ou't o f fu'd u u&""y 'eeded to &c8ui e & $i&bi"ity &'d & et

the e &"/ &y hou"d be & fo %&" &ppov&" p oce be fo e & pu ch& e o de i i ued.

A' e2&%p"e i ho/ ' i' fi#u e be"o/ . Depe'di'# o' the i5e o f the &c8ui itio'1 &

'u%be of &pp ov&" i#'&tu e %&y be e8ui ed1 e2te'di'# up to the co%p&'y

p e ide't o eve' the ch&i of the bo& d o f di ecto .

< s e pr enu m be r ed acqui s ition and dis po s al forms . If the co%p&'y u e & %&'u&

y te% fo $i&bi"ity &'d & et &c8ui itio' &'d di po &"1 the' it hou"d &c8ui e &

et o f p e'u%be ed &c8ui itio' &'d di po &"fo % . ,y doi'# o1 it c&' 4eep t &c

of fo % 'u%be to e' u e th&t 'o'e i "o t p io to co%p"etio'. Thi i &"o & #ood

/ &y to e' u e th&t e%p"oyee do 'ot &tte%pt to ub%it %u"tip"e &c8ui itio'

&utho i5&tio' fo % fo the &%e & et1 &""o/ i'# the% to o de dup"ic&te & et

&'d %&4e off / ith the e2t & ite% . ) o thi to be & fu""y fu'ctio'&" co't o"1 o%eo'e

%u t be & i#'ed the t& 4 o f to i'# the fo % i' & ecu e "oc&tio' &'d

%o'ito i'# / hich fo % 'u%be h&ve bee' e"e& ed fo u e.

< Requi r e r etu r n on inve s t m ent calculation pr ior to app r oval . Give' the co' ide &b"i5e o f o%e $i&bi"ity &'d & et i've t%e't 1 & e& o'&b"e co't o" i to c&"cu"&te th

e ti%&ted etu ' o' i've t%e't to ee i f the i've t%e't e2ceed the co po &t

hu d"e &te. The etu ' c&"cu"&tio' c&' i'vo"ve & v& iety o f &pp o&che 1 uch & the

p&yb&c4 pe iod1 'et p e e't v&"ue1 o i'te '&" &te of etu '. A"" th ee

c&"cu"&tio' &e i'c"uded i' the c&pit&" i've t%e't p opo &"fo % ho/ ' i' fi#u e

be"o/ .

< !onduct a po s tcom pletion pr o ect analy s is . ! &'e h&ve bee' 4'o / ' to %&4e

ove "y opti%i tic p ojectio' i' o de to %&4e f&vo &b"e c&e fo & et

39


40/74

MITS-ANGALLU

&c8ui itio' . Thi i ue c&' be %iti#&ted by co'ducti'# e#u"& evie / of the

e u"t of & et &c8ui itio' i' co%p& i o' to i'iti&" p edictio' &'d the' t &ci'#

the e fi'di'# b&c4 to the i'iti&ti'# %&'e . Thi &pp o&ch c&' &"o be u ed &

v& iou %i"e to'e du i'# the co' t uctio' o f &' & et to e' u e th&t co t i'cu ed

%&tch o i#i'&" p ojectio' .

< !o m pa r e Liability and assets s er ial num be rs to the exis ting s er ial num be r

databa s e. The e i & po ibi"ity th&t e%p"oyee & e &c8ui i'# & et 1 e""i'# the% to

the co%p&'y1 the' te&"i'# the & et &'d e""i'# the% to the co%p&'y &i'. To

pot thi beh&vio 1 &"/ &y e'te the e i&" 'u%be of e&ch &c8ui ed & et i' the

$i&bi"ity &'d & et %& te fi"e1 &'d the' u' & epo t co%p& i'# e i&" 'u%be fo

&"" &et to ee i f the e & e dup"ic&te e i&" 'u%be o' eco d.

< # ndependently r eview Liability and assets m a s te r file addition s . A 'u%be of

do/ ' t e&% e o c&' & i e / he' $i&bi"ity &'d & et i' fo %&tio' i e'te ed

i'co ect"y i' the $i&bi"ity &'d & et %& te fi"e. ) o e2&%p"e1 &' i'co ect & et

de c iptio' c&' e u"t i' &' i'co ect & et c"& ific&tio'1 / hich i' tu ' %&y e u"

i' &' i'co ect dep eci&tio' c&"cu"&tio'. Si%i"&"y1 &' i'co ect & et "oc&tio' code

c&' e u"t i' the ub e8ue't i'&bi"ity to "oc&te the phy ic&" & et1 / hich i' tu '%&y e u"t i' &' i%p ope & et di po &" t&' &ctio'. ) u the 1 &' i'co ect

&c8ui itio' p ice %&y e u"t i' &' i'co ect dep eci&tio' c&"cu"&tio'. To %iti#&te

the i 4 o f &"" thee e o 1 h&ve & eco'd pe o' evie / &"" 'e/ e't ie to the

$i&bi"ity &'d & et %& te fi"e fo &ccu &cy.

< $ffix an identification plate to all Liabilities and $ssets . If & co%p&'y &c8ui e

& et th&t &e 'ot e& i"y diffe e'ti&ted1 the' it i u efu" to &ffi2 &' ide'ti fic&tio'

p"&te to e&ch o'e to & i t i' "&te &udit . The ide'ti fic&tio' p"&te c&' be & %et&" t&

if du &bi"ity i &' i ue1 o c&' be & "&%i'&ted b& code t fo e& y c&''i'#1 o

eve' & &dio f e8ue'cy 0R)ID3 t. The pe o' e po' ib"e fo t#i'# hou"d

40


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MITS-ANGALLU

< !onduct r egula r a ss et dis po s ition r eviews . $i&bi"itie &'d A et dec"i'e i' v&"ue

ove ti%e1 o it i e e'ti&" to co'duct & e#u"& evie / to dete %i'e i f &'y & et

hou"d be di po ed o f befo e they "o e thei e &"e v&"ue. Thi evie / hou"d be

co'ducted &t "e& t &''u&""y1 &'d hou"d i'c"ude ep e e't&tive f o% the

&ccou'ti'#1 pu ch& i'#1 &'d u e dep& t%e't . A' &"te '&tive &pp o&ch i to

c e&te c&p&city uti"i5&tio' %et ic 0/ hich i %o t e& i"y obt&i'ed fo p oductio'

e8uip%e't 3 &'d epo t o' uti"i5&tio' "eve" & p& t of the t&'d& d %o'th"y

%&'e%e't epo ti'# p&c4e thi te'd to e u"t i' %o e i%%edi&te deci io' to

e"i%i'&te u'u ed e8uip%e't.

< Requi r e a s igned capital a ss et dis po s ition form pr io r to dis po s ition . The e i & i 4

th&t e%p"oyee cou"d e"" off & et &t be"o/; %&4et &te o di po itio' & et fo

/ hich &' &"te '&tive i' ;hou e u e h&d bee' p"&''ed. A" o1 if & et &e i' fo %&""

di po ed o f1 the &ccou'ti'# t&ff p ob&b"y / i"" 'ot be 'oti fied &'d o / i"" co'ti'ue

to dep eci&te &' & et 'o "o'#e o/ 'ed by the co%p&'y1 &the th&' / iti'# it o ff

To &void the e p ob"e% 1 e8ui e the co%p"etio' o f & i#'ed c&pit&" & et

di po itio' fo %1 uch & the o'e ho/ ' i' fi#u e be"o/ .< %er ify that ca s h r eceipt s f r om a ss et s ale s a r e handled pr ope r ly. E%p"oyee %&

e"" & co%p&'y: & et 1 poc4et the p oceed 1 &'d epo t to the co%p&'y th&t the

& et &ctu&""y/ & c &pped. Thi co't o" i ue c&' be educed by e8ui i'# th&t &

bi"" of &"e o eceipt f o% & c &ppi'# co%p&'y &cco%p&'y the fi"e fo eve y & e

th&t h& bee' di po ed o f.

The p ecedi'# co't o" / e e p i%&y o'e e8ui ed & p& t o f the b& ic $i&bi"ity &'d42


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MITS-ANGALLU

& et t &' &ctio' f"o/ . I' &dditio'1 the 'e2t &'ci""& y co't o" eithe &e #e'e &" co't o"

th&t ope &te out ide o f &'y peci fic t &' &ctio' o &e de i#'ed to p ovide &dditio'&" i 4

%iti#&tio'.

< &egr egate r es pon s ibilitie s r elated to Liabilities and $ssets . If the pe o'

pu ch& i'# &' & et &"o eceive it1 the e i & co' ide &b"e i 4 th&t the pe o' / i"

&"te the pu ch& i'# docu%e't to e"i%i'&te evide'ce o f the eceipt &'d the' te&

the & et. The &%e co'ce ' &pp"ie to eve &" &pect of $i&bi"itie &'d A e

t &' &ctio' . A co't o" ove thi itu&tio' i to e# e#&te the e type of

e po' ibi"itie :

o $i&bi"ity &'d & et &c8ui itio'

o $i&bi"ity &'d & et t &' &ctio'

eco di'#

o Cu tody o f the $i&bi"ity &'d

& et

o $i&bi"ity &'d & et di po &"

o Reco'ci"i&tio' o f phy ic&" & et to &ccou'ti'# eco d

< Res t r ict acce ss to the Liability and assets m a s ter file. The $i&bi"ity &'d & e

%& te fi"e co't&i' &"" b&e"i'e i' fo %&tio' &bout &' & et &'d i the ou ce

docu%e't fo dep eci&tio' c&"cu"&tio' & / e"" & & et "oc&tio' i' fo %&tio'. If

peop"e / e e to #&i' i""icit &cce to thi fi"e1 they cou"d %&4e %odific&tio' to

ch&'#e dep eci&tio' c&"cu"&tio' 0the eby ch&'#i'# fi'&'ci&" e u"t 3 & / e"" &

%odi fy "oc&tio' 0po ib"y e u"ti'# i' the ft o f the & et 3.

To &void the e p ob"e% 1 &"/ &y u e p& / o d co't o" to e t ict &cce to the

$i&bi"ity &'d & et %& te fi"e.

< Res t r ict facility acce ss . If the co%p&'y o / ' $i&bi"itie &'d A et th&t c&' be

e& i"y %oved &'d h&ve & i#'i fic&'t e &"e v&"ue1 thee i & i 4 th&t they / i"" be43


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MITS-ANGALLU

to"e'. If o1 co' ide e t icti'# &cce to the bui"di'# du i'# 'o' / o 4 hou &'d

hi e & ecu ity t&ff to p&t o" the pe i%ete o &t "e&t the e2it .

< # ns tall an ala rm s ys tem to detect R #() tagged a ss et s . If the co%p&'y h&

e peci&""y v&"u&b"e$i&bi"itie &'d A et th&t c&' be %oved1 the' co' ide &ffi2i'#

& R)ID t to e&ch o'e &'d the' i' t&""i'# & t &' ceive 'e& eve y bui"di'# e2itth&t / i"" t i##e &' &"&% if the R )ID t p& e by the t &' ceive .

< Reconcile Liability and assets addition s with capital expenditu r e autho r i * ation s . A

#ood detective co't o" to e' u e th&t &"" &c8uiitio' h&ve bee' &utho i5ed

p ope "y i to pe iodic&""y eco'ci"e &"" $i&bi"ity &'d & et &dditio' to the

fi"e of &pp oved c&pit&" e2pe'ditu e &utho i5&tio' . A'y &c8ui itio' fo / hich

the e i 'o &utho i5&tio' p&pe / o 4 &e the' f"#ed fo &dditio'&" evie /typic&""y i'c"udi'# epo ti'# o f the co't o" b e&ch to %&'e%e't.

< # nc r ea s e the capitali * ation lim it . A 4ey p ob"e% / ith $i&bi"ity &'d & e

t &c4i'# i th&t it i'vo"ve & co' ide &b"e &%ou't of &dditio'&" p&pe / o 4 & / e"

& o'#oi'# dep eci&tio' c&"cu"&tio' 1 / hich %&y o ove / he"% the &ccou'ti'#

t&ff th&t they & e t u##"i'# to 4eep up / ith the p&pe / o 4 &the th&'

focu i'# o' p ope co't o" of the & et the% e"ve . Thi eco%%e'ded co't o"

%&y ee% cou'te i'tuitive1 but i'c e& i'# the c&pit&"i5&tio' "i%it educe the

'u%be of & et de i#'&ted & $i&bi"itie &'d A et1 the eby &""o/ i'# the

&ccou'ti'# t&ff to focu it &tte'tio' o' the p ope &pp ov&"1 t&c4i'#1 &'d

di po itio' o f & %&""e 'u%be of "e;do""&

& et . Thu 1 ove i#ht o f %&""e & et i &b&'do'ed i' f&vo of # e&te i' pectio' o f

"e;do""& & et t &' &ctio' .

< !onduct a pe r iodic Liability and assets audit . The i'te '&" &udit t&ff hou"d

chedu"e & pe iodic &udit o f $i&bi"itie &'d A et1 eco'ci"i'# the o' ;h&'d

i've'to y to the &ccou'ti'# eco d . Give' the co' ide &b"e 8u&'tity of $i&bi"itie

44


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MITS-ANGALLU

&'d A et th&t %&'y co%p&'ie %&i't&i'1 it i &ccept&b"e to focu o' the =>

pe ce't o f $i&bi"itie &'d A et th&t typic&""y &ccou't fo J> pe ce't o f the

i've ted co t of &""$i&bi"itie &'d A et. A' e2&%p"e o f & epo t uit&b"e fo &

$i&bi"ity &'d & et &udit i ho/ ' i' fi#u e be"o/ .

< %er ify the fai r value a ss um ption s on di ss im ila r a ss et exchange s . Accou'ti'# u"e&""o/ o'e to eco d & #&i' o "o o' the e2ch&'#e o f di i%i"& & et . Si'ce thi

c&"cu"&tio' i b& ed o' the f&i v&"ue of the & et i'vo"ved 0/ hich i 'ot t&ted

i' the &ccou'ti'# eco d 31 the po ibi"ity e2i t fo o%eo'e to & tifici&""y ce&t

&' & et f&i v&"ue th&t/ i"" e u"t i' & #&i' o "o . Thi itu&tio' c&' be &voided by

h&vi'# &' out ide &pp &i e evie / the f&i v&"ue & u%ptio' u ed i' thi type o f

t &' &ctio'.

< + es t for a ss et im pai rm ent . The e &e & v&iety o f ci cu% t&'ce u'de / hich the 'et

boo4 v&"ue of &' & et hou"d be educed to it f&i v&"ue1/ hich c&' e u"t i'

i#'i fic&'t eductio' i' the eco ded v&"ue of &' & et. Thi te t e8ui e &

i#'i fic&'t 4'o / "ed#e o f the type of %&4et i' / hich & co%p&'y ope &te 1 the

e#u"&tio' to / hich it i ubject1 &'d the 'eed fo it p oduct / ithi' tho e

%&4et . Co' e8ue't"y1 o'"y & 4'o / "ed#e&b"e pe o' / ho i &t "e&t &t the "eve" of &co't o""e hou"d be e"ied o' to detect the p e e'ce o f & et / ho e v&"ue &e "i4e"y

to h&ve bee' i%p&i ed.

< %er ify that co rr ect dep r eciation calculation s a r e being m ade . Thou#h the e i

'o pote'ti&" "o of & et if i'co ect dep eci&tio' c&"cu"&tio' &e bei'# %&de1 it

c&' e u"t i' &' e%b& & i'# &dju t%e't to & co%p&'y : fi'&'ci&" t&te%e't &

o%e poi't i' the futu e. Thi co't o" hou"d i'c"ude & co%p& i o' o f c&pit&"i5e

ite% to the o ffici&" co po &te c&pit&"i5&tio' "i%it to e' u e th&t ite% &e

'ot bei'# i'&pp op i&te"y c&pit&"i5ed &'d depeci&ted. The co't o" hou"d &" o

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i'c"ude & evie / of the & et c&te#o ie i' / hich e&ch i'dividu&" & et h& bee'

eco ded1 to e' u e th&t &' & et h& 'ot bee' %i c"& ified &'d the efo e i'co ect"y

dep eci&ted.

< %er ify that all change s in a ss et r eti r em ent obligation a ss um ption s a r e

autho r i * ed. A co%p&'y c&' & tifici&""y i'c e& e it ho t;te % p ofit&bi"ity by

&"tei'# the & u%ed &%ou't o f futu e c& h f"o/ & oci&ted / ith it & et

eti e%e't ob"i#&tio' . Si'ce do / ' / &d evi io' to the e & u%ptio' / i"" be

ef"ected i' the cu e't pe iod : i'co%e t&te%e't & & #&i'1 &'y ch&'#e to

the e & u%ptio' hou"d be &pp oved p io to i%p"e%e't&tio'.

MANAGEMENT O LIABILITIES AND ASSETS:

The e"ectio' o f v& iou $i&bi"itie &'d A et e8ui ed fo c e&ti'# the de i edp oductio' f&ci"itie &'d the deci io' e#& di'# the dete %i'&tio' o f "eve" of$i&bi"itie &'d A et i' the c&pit&" t uctu e i &' i%po t&'t deci io' fo theco%p&'y to t&4e fo the %ooth u''i'# o f bu i'e . The deci io' e"&ti'# to$i&bi"itie &'d A et i'vo"ve hu#e fu'd fo "o'# pe iod o f ti%e &'d & e#e'e &""y of i eve ib"e '&tu e &ffecti'# the "o'# p ofit&bi"ity of the bu i'eThu 1 %&'e%e't o f $i&bi"ity &'d & et i o f vit&" i%po t&'ce to &'y o #&'i5&tio'.

The p oce of $i&bi"itie &'d A et ! &'e%e't i'vo"ve :

@. Se"ectio' o f %o t / o thy p oject f o% the di ffe e't &"te '&tive of

$i&bi"itie &'d A et.

=. A &'#i'# the e8ui ite fu'd 7c&pit&"fo the &%e.

The fi t i%po t&'t co' ide &tio' i to &c8ui e o'"y th&t &%ou't o f $i&bi"itie &'

A et 1 / hich / i"" be ju t ufficie't to e' u e %ooth &'d e fficie't u''i'# o f the

bu i'e . I' o%e c& e it %&y be eco'o%ic&" to buy ce t&i' & et i' & "ot i5e. A'othe

i%po t&'t co' ide &tio' to be 4ept i' %i'd i po ib"e i'c e& e i' the de%&'d o f the fi %:

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p oduct 'eed the e2p&' io' o f &ctivitie . - e'ce & fi % hou"d h&ve th&t &%ou't of $i&bi"itie

&'d A et 1/ hich cou"d &dju t to i'c e& e de%&'d.

A'othe & pect o f $i&bi"itie &'d A et %&'e%e't i th&t &fi % %u t e' u e

buffe toc4 of ce t&i' e e'ti&" e8uip%e't to e' u e u'i'te upted p oductio' i' the

eve't of e%e #e'cie . So%eti%e 1 the e %&y o%e b e&4do/ ' i' o%e e8uip%e't oe vice &ffecti'# the e'ti e p oductio'. It i &"/ &y bette to h&ve o%e &"te '&tive

& &'#e%e't to de&" / ith uch itu&tio' but &t the &%e ti%e the co t of c& yi'# uch bu ffe

toc4 hou"d &"o be ev&"u&ted. Effo t hou"d &"o be %&de to %i'i%i5e the "eve" o f bu ffe

toc4 o f $i&bi"itie &'d A et o th&t the e / i"" be %&2i%u% uti"i5&tio' du i'# th&t pe iod.

L"* " "$"'# *& A##'$# , *&*)' , ' &$ i &' &ccou'ti'# p oce th&t ee4 to t &c4

$i&bi"itie &'d A et fo the pu po e of fi'&'ci&" &ccou'ti'#1 p eve'tive

! &i'te'&'ce1 &'d the ft dete e'ce.

! &'y o #&'i5&tio' f&ce & i#'i fic&'t ch&""e'#e to t &c4 the "oc&tio'1 8u&'tity1 co'ditio'1

%&i'te'&'ce &'d dep eci&tio' t&tu of thei fi2ed & et . A popu"& &pp o&ch to t &c4i'#

$i&bi"itie &'d A et uti"i5e e i&" 'u%be ed A et T 1 ofte' / ith b& code fo e& y

&'d &ccu &te e&di'#. Pe iodic&""y1 the o/ 'e of the & et c&' t&4e i've'to y / ith &

%obi"e

,& code e&de &'d the' p oduce & epo t.Off; the ; he"f oft/ &e p&c4e fo $i&bi"ity &'d

& et %&'e%e't & e %& 4eted to bu i'e e %&"" &'d "e. So%e E'te p i e Re ou ce

P"&''i'#

Sy te% &e &v&i"&b"e/ ith $i&bi"itie &'d A et %odu"e .

I&(' #$, ' &$ , *&*)' , ' &$ i the p ofe io'&" %&'e%e't o f v& iou

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ecu itie 0 h&e 1 bo'd etc 3 &'d othe & et 0e.#. e&" e t&te31 to %eet

peci fied i've t%e't #o&" fo the be'e fit o f the i've to . I've to %&y

be i' titutio' 0i' u &'ce co%p&'ie 1 pe' io' fu'd 1 co po &tio' etc. 3 o

p iv&te i've to 0both di ect"y vi& i've t%e't co't &ct &'d %o e

co%%o'"y vi& co""ective i've t%e't che%e e#. %utu&" fu'd 3 .

The te % *##' $ , *&*)' , ' &$ i ofte' u ed to efe to the i've t%e't

%&'e%e't o f co""ective i've t%e't 1/ hi" t the %o e #e'e ic .!&

, *&*)' , ' &$ %&y efe to &""fo % of i' titutio'&" i've t%e't & / e"" &

i've t%e't %&'e%e't fo p iv&te i've to . I've t%e't %&'e / ho

peci&"i5e i' advi s or y o dis cr etiona r y %&'e%e't o' beh&" f of

0'o %&""y/ e&"thy3 p iv&te i've to %&y ofte' efe to thei e vice &

> '* $9 , *&*)' , ' &$ o %/$. % "% , *&*)' , ' &$ ofte' / ithi' the co'te2t

of o;c&""ed p iv&te b&'4i'# .

The p ovi io' o f Ki've t%e't %&'e%e't e vice K i'c"ude e"e%e't of

fi'&'ci&" &'&"y i 1 & et e"ectio'1 toc4 e"ectio'1 p"&' i%p"e%e't&tio'

&'d o'#oi'# %o'ito i'# o f i've t%e't .

I've t%e't %&'e%e't i & "e &'d i%po t&'t #"ob&" i'du t y i' it

o/ ' i#ht e po' ib"e fo c& et&4i'# o f t i""io' of do""& 1 eu o 1 pou'd

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&'d ye'. Co%i'# u'de the e%it o f fi'&'ci&" e vice %&'y o f the

/ o "dK "e t co%p&'ie &e &t "e&t i' p& t "&(' #$, ' &$ , *&*)'/ # &'d

e%p"oy %i""io' of t&ff &'d c e&te bi""io' i' eve'ue.

!& , *&*)'/ 0o "&(' #$, ' &$ * ("#%/ i' the U.S.3 efe to both & fi %

th&t p ovide i've t%e't %&'e%e't e vice &'d &' i'dividu&" 0 3 / ho

di ect Kfu'd %&'e%e't K deci io'

CHAPTER-I

DATA ANALYSIS

INTERPRETATION

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DATA ANALYSIS INTERPRETATION TR END

ANA LYSIS:

I' fi'&'ci&" &'&"y i the di ectio' o f ch&'#e ove & pe iod o f ye& i oi'iti&" i%po t&'ce. Ti%e e ie &'d t e'd &'&"y i of &tio i'dic&te the di ectio' o f ch&'#e

Thi 4i'd o f &'&"y i i p&ticu"&"y &pp"ic&b"e to the pofit &'d "o &ccou't. It i &dvi &b"

th&t t e'd of &"e &'d 'et i'co%e %&y be tudied i' the "i#ht o f t/ o f&cto . The #e'e &

p ice "eve" th&t %i#ht be fou'd i' p &ctice i th&t & 'u%be of fi % / ou"d be ho/ ' &t

pe i te't # o/ th ove pe iod o f ye& but to #et &am

m Zuari Cement

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