ACC Limited

Introduction
ACC Limited is Indias foremost cement manufacturer with a countrywide network of factories and marketing offices. Established in 1936, ACC has been a pioneer and trend-setter in cement and concrete technology. Among the first companies in India to include commitment to environment protection as a corporate objective, ACC has won accolades for environment friendly measures taken at its plants and mines, and has also been felicitated for its acts of good corporate citizenship. ACC is the most preferred cement brand name in India. ACC is now part of the worldwide Holcim Group.

CORPORATE PROFILE
ACC (ACC Limited) is India's foremost manufacturer of cement and concrete. ACC's operations are spread throughout the country with 16 modern cement factories, more than 40 Ready mix concrete plants, 21 sales offices, and several zonal offices. It has a workforce of about 9,000 persons and a countrywide distribution network of over 9,000 dealers. Since inception in 1936, the company has been a trendsetter and important benchmark for the cement industry in many areas of cement and concrete technology. ACC has a unique track record of innovative research, product development and specialized consultancy services. The company's various manufacturing units are backed by a central technology support services centre - the only one of its kind in the Indian cement industry. ACC has rich experience in mining, being the largest user of limestone. As the largest cement producer in India, it is one of the biggest customers of the domestic coal industry, of Indian Railways, and a considerable user of the countrys road transport network services for inward and outward movement of materials and products. Among the first companies in India to include commitment to environmental protection as one of its corporate objectives, the company installed sophisticated pollution control equipment as far back as 1966, long before

pollution control laws came into existence. Today each of its cement plants has state-of-the art pollution control equipment and devices. ACC plants, mines and townships visibly demonstrate successful endeavors in quarry rehabilitation, water management techniques and greening activities. The company actively promotes the use of alternative fuels and raw materials and offers total solutions for waste management including testing, suggestions for reuse, recycling and co-processing. ACC has taken purposeful steps in knowledge building. We run two institutes that offer professional technical courses for engineering graduates and diploma holders which are relevant to manufacturing sectors such as cement. The main beneficiaries are youth from remote and backward areas of the country. ACC has made significant contributions to the nation building process by way of quality products, services and sharing expertise. Its commitment to sustainable development, its high ethical standards in business dealings and its on-going efforts in community welfare programmers have won it acclaim as a responsible corporate citizen. ACCs brand name is synonymous with cement and enjoys a high level of equity in the Indian market. It is the only cement company that figures in the list of Consumer Super Brands of India.

About JAMUL
Jamul cement woks established in 1965. It is 100%PSC (Portland slag cement) manufacturing plant. Its having Clinkering capacity of .76 MTPA. And having Grinding capacity of 1.58 MTPA. Its captive Power plant of 25MW Plant. ~30 km from Raipur the State Capital of Chhattisgarh. ~5 km from BSP.

The manufacturing plants of ACC Ltd are situated in the following locations:
Bargarh - Orissa Chaibasa - Jharkhand Chanda - Maharashtra Damodhar West Bengal Gagal Himachal Pradesh Jamul - Chhattisgarh Kymore Madhya Pradesh Kudithini Karnataka Lakheri - Rajasthan Madukkarai Tamil Nadu Sindri - Jharkhand Wadi - Karnataka Thondebhavi - Karnataka Tikaria Uttar Pradesh

Cement is manufactured by using Clinker Slag Gypsum additional

Types of cement: manufactured by Acc group

Ordinary Portland Cements (OPC) Portland Pozzolana Cement (PPC) Portland Slag Cement (PSC)

PSC is prepared by using Clinker 45% Slag 50% Gypsum & additional 5%

OPS is prepared by using Clinker Gypsum PPC is prepared by using Fly ash Clinker

History of ACC

Year

Happenings
Romans was the first to use cement

16th century

1760

John smeaton was first to develop best composition of hydraulic cement.. Joseph Aspdin was granted a patent for Portland cement First cement factory was started in Chennai Manufacture of Portland cement on large scale started by Indian cement co.ltd. 10cement factories in India with total production of 5.81lakh tones per annum Incorporation of The Associated cement companies limited on Aug 1,1936

1824

1904

1914

1924

1036

1939

17 factories in India with total capacity of 26.15 lakhs tones pa After partition 100 factories remained in India of total capacity 21.15lakh tones

1947

ABOUT INDUSTRY

 The Indian cement industry is the second largest market after China. Cement industry plays an important role in the process of DEVELOPMENT OF AN ECONOMY. The infrastructural development of a country depends considerably on the growth of cement industry. Cement is used as binding material along with bricks, stones, iron and steel in the construction building, bridges, roads, etc.. ABOUT COMPANY

 India's foremost manufacturer cement and concrete.

of

Spread throughout the country with 14 modern cement factories, more than 30 Ready mix concrete plants, 20 sales offices, and several zonal offices.

Every factory has pollution control equipment and devices. Company has won several prizes and certificates of merits for environmental measures undertaken at its various plants and mines.

 As the largest cement producer in India, it is one of the biggest customers of the Indian Railways.

Organizational structure of Finance DGM

AP

AR

CO

AM

GL

AP (Accounts payable)

Bill section

Taxation

Raw material

Supply

Services

Employee

Excise and service tax

VAT and Entry tax

In ACC the Finance department is divided into many sections but the major section is bill section. 1. Bill section is also divided into many sub-sections Raw material Supply Service Employee

And each sub section is handle by one member and headed by Accounts payable. 2. Costing section is comes under controlling model and handle by one member. 3. Taxation is having two parts. Excise and service tax VAT,CST,and entry tax And it comes under accounts receivable model and handle by two members. 4. Treasury and general ledger and it are controlled by general ledger model and handle by one member. 5. Asset management it comes under asset management model and handle by one member. 6. Lisening and legal sections and handle by one member.

In ACC Limited they used SAP model (system application and product) for their work.

SAP is divided into five parts MM (material management) PP(production planning) PM(plant maintenance) HR(Human resource) PS(project system) And all this comes under FICO (Finance and controlling) and it also having five sub parts AP(accounts payable) AR(accounts receivable) CO(controlling model) AM (asset management) GL(general ledger)

ACCOUNTS PAYABLE
In AP model they made purchase requisition (it

include type of material, how much quantity and their product specification etc). and it consists of two
parts

i.

ii.

Automatic PR (it generate automatically) For example 50 units of goods present in the warehouse and they use 40 units, then 10units only left remain it automatically made requisition of 40units. Manually requisition they made for small items like stationary. Then the purchase department made a list of material and see that from where they can get their material means search vendor who can supply them. After that interested vendor sent their quotation to the company after that purchase department made a comparative statement (it include price of goods, quantity, taxes etc.) and it goes to tender committee (finance head, procurement head, technical head,) and after that it is approved model purchase requisition is prepared first which include type of material, their quantity by tender committee Means from whom they want their material. The selected vendor supply the material then the goods delivered by hi and it entre the gate of the company from there it is inspect by user (that the good is according to his demand or not) and after goods reception they make bills and verify that GR is made or not. And last it comes payment terms that payment is made according to due date or not.

Three major entries in Bills section at the time when goods have received. At the time of GR Stock a/c To GR/IR a/c

dr

At the time of bills verification GR/IR a/c dr To vender At the payment process Vender dr To Bank a/c And payment is made through RTGS.

Employee related bills Medium policy for employee Travelling advance Sundry advance salary advance

Retirement benefit

Gratuity = 15 days in a year *length of service Minimum eligibility= 5 years Provident fund=12%employee deduction 12%companies share 8.33%provident fund 4.67%pension Leave in casements Management staff= 40 days leave in year 15 days enjoyable (compulsory leave) 25 days in cashable (if you dont take leave you will get cash) Cash purchase Travelling portal Accounts receivable Main income source for acc limited is scrap sales there is scrap yard in plant like wooden scrap, plant scrap, mechanical scrap ,plastic scrap etc.

Small income source is quarter rent given by them to the contractor. AFR (alternative fuel resources) is used for absorbing or reducing coals cost used in a plant.ATR (acid task rust) which is hazardous for health and used by ACC cement as an alternative source for coal. Scrap sales Scrap sales are done through E-auction there is centralize of ACC for scrap sale. For selling the scrap(like plastic scrap,mechinal scrap, wooden scrap)they make a list of scrap products made by procurement manager they see quantity and fixed rate for sale and upload in their website according to their demand and then the Vender who is having highest bid they sale their scrap to them through scrap order. For this they give advance for purchasing the scrap and then they made delivery order (include how much quantity then customer

take the scrap goods and they prepare excise chalan and then material goes out of the gate.

General ledger and Treasury In ACC limited all payments and receptions is centralized means done by head office. Acc is having three accounts for treasury Swip accounts -- In this a/c at the starting of the day their balance is 0 and they are having drawing power of Rs

5.5crore and after that bank system stop payment at the end of the day the money transfer by the bank to head office. Overdraft powerhere they are having o/d power of Rs 5lacs. For example-if they have a balance of Rs10lacs so they can be able to withdraw Rs15lacs. Dedicate accountsACC is having accounts in Bombay from where they make all payments. For Tax payments a/c they have to go to NSDL site (national security depository ltd) In this site they fill all details (like surcharge, assessment year, name etc)through E-cheque they say to make payments either a creditor or bank then bank make payments to them then the persons go to banks website and take the print of chalan for proof.

General ledger In general ledger their duty is to check the work done by AP members and then they post .and if they dont then they can delegate their authority to AM, Controlling member 8 digit GL code and for checking they have serials no. 1--revenue/receipt 2expencess 3assets 4liablities 5ho (corporate, for issuing shares) Controlling It is called as business area clearing accounts. In a cement plants from quarry to lorry they controlled all the activities

Asset managements Refers to any system whereby things that are of value to an entity or group are monitored and maintained. It may apply to both tangible assets and to intangible concepts such as intellectual property and goodwill. Asset management is a systematic process of. Operating, maintaining, and upgrading assets cost-effectively. ACC is having 4000 assets and they did physical verification for their asset. For building and machineryevery year Vehicleone time in two year Furnitureone time in a three year Landone time in three year It include

Found item which can be founded and then write off. Not found item which cannot be found off. Absolute itemwhich can be sanction through policy and then write off and put in the scrap. Changeable itemmeans it can be shifted from one department to another. Fixed asset generation Capital expenditure is those expenditure which have three major parts Entity means identity Life asset should have life more than than 1 year Amount for machinery it should be 10 lacs and for furniture and fixtures 2.50lacs. Some critical spares parts are also come under asset management. Capital expenditure is of five types Replacement Rationalizations

Expansion and diversification Improvement in product quality Social and safety Environment
CESS Format (capital expenditure sanction

sheet) In a cess format Purchase department have to tell them certain benefits for purchasing new assets (equipment cost, how much profit, how much productivity)then it is approved by head officers like(finance head, capex head, engineering head,MD etc.) Then internal order is generate then they ask detail of asset from user department.IO comes under AUC (asset under construction)it includes the no of assets Then they send this AUC to Thane Mumbai and it approved by them Then they made purchase requisition made (it include type of material, how much quantity and

their product specification etc). And it consists of

two parts

iii. Automatic PR (it generate automatically) For example 50 units of goods present in the warehouse and they use 40 units, then 10units only left remain it automatically made requisition of 40units. iv. Manually requisition they made for small items like stationary. Then the purchase department made a list of material and see that from where they can get their material means search vendor who can supply them. After that interested vendor sent their quotation to the company after that purchase department made a comparative statement (it include price of goods, quantity, taxes etc.) and it goes to tender committee (finance head, procurement head, technical head,) and after that it is approved model purchase requisition is prepared first which include type of material, their quantity by tender committee Means from whom they want their material.

The selected vendor supply the material then the goods delivered by hi and it entre the gate of the company from there it is inspect by user (that the good is according to his demand or not) and after goods reception they make bills and verify that GR is made or not. And last it comes payment terms that payment is made according to due date or not. Three major entries in Bills section at the time when goods have received. At the time of GR Stock a/c To GR/IR a/c

dr

At the time of bills verification GR/IR a/c dr To vender At the payment process Vender dr To Bank a/c And payment is made through RTGS.