AFFLUENCE

Annexure VI

DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSERVATION OF ENERGY, TECHNOLOGY, ABSORPTION, AND FOREIGN EXCHANGE EARNINGS AND OUTGO AS REQUIRED UNDER THE COMPANIES (ACCOUNT) RULES, 2014.

1. Alternative Fuel: A step towards green environment

Cement plants have an inherent advantage to consume various types of wastes as an alternative to raw material and fuel. However, to convert it into reality and manage its potential impact that could cause to the process and equipment stability, it is important to master the processes.

We have demonstrated our process mastery by developing capabilities in our plants to consume all types of wastes including the hazardous industrial wastes. This also goes a long way in promoting environmental sustainability and gaining energy security. Our Thermal substitution Rate (TSR) stood at 3.6% in this year with an increase of 10% over last year, despite difficulties in availability of such material owing to demand-supply gaps. Sourcing of cheaper & new alternative raw material remains a key focus area.

Alternate Fuel/ARM foot print

2. Additional investment and proposals, if any being implemented for the conservation of energy:

(a) The following projects were implemented in 2017-18 to reduce energy consumption:

Sonadih Cement plant

Replacement of high efficient fan in Raw mill 2 and coal Mill 2 vent fan.

Installation of VFD (Variable frequency drive) in Raw mill 2.

Installation of capacitors to improve power demand factor.

Optimization of Haul road distance to reduce diesel consumption in mines.

Construction storage shed of 50KT resulting in elimination/reduction of fugitive dust, lower handling cost and improvement in clinker quality as it will also not get deteriorated in rainy season.

Arasmeta Cement plant

Installation of VFD (Variable frequency drive) in Cement Mill O Sepa bag filter fan.

Part replacement of Kiln down-comer duct (worn-out) to reduce energy consumption.

Replacement of Raw mill 2 exhaust fan

Installation of MV-VFD to improve fan efficiency

Jojobera Cement plant

Increased RPM of separator fans by field weakening process to increase in cement mill throughput,

Optimization of grinding media usage

Automation of HAG (hot air generator) resulted in reduction HFO consumption in Roller Press circuit & Conversion of double chamber burner HAG to single chamber burner helps in reducing coal consumption & minimize the HSD support for burner flame.

Installation of a redundant bag filter in FG3 circuit and its collection directed towards product silo to reduce over-grinding resulting into reduction of grinding shop SPC.

Mejia Cement plant

Optimization of grinding media usage resulting significant throughout enhancement.

Improvement in fly ash handling system resulting in lower energy consumption.

Chittorgarh Cement plant

Fan speed optimization through VFD Installation in Cooler Fans, crusher dust collector fan and Packer bag filter fan as major project.

Installation of Process expert system.

Installation of high efficiency impeller in raw mill fan and pre-heater fan.

Beside above following common actions taken in all the plant to reduce energy consumption

Cross plant pyro audit and ball mill audit to identify improvement opportunities.

Cross maintenance management audit to identify improvement opportunities.

Fan efficiency study, compressed air and utility load optimisation

Reduction in lighting power by installation of LED’s lights.

Regular review and optimisation of process control parameters resulted in improvement of Productivity and reduction in power consumption.

Benchmarking done between plants and competitors to tap the potential on energy reduction.

b) The following major projects are being proposed in 2018-19:

Installation and commissioning of Captive power plant and Waste heat recovery (WHR) system.

Installation of efficient coolers at sonadih and chittorgarh plant

Debottlenecking of cement capacity in East plants

Continual improvement of optimization of process parameters

Replacement of O-Sepa fan in both the Cement mills & Cement Mill 2 CA Fan to improve SPC at ACP

Installation of high efficiency impeller in cooler Bag house Fan and cement mill main bag house fan at CCP.

(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:

The above measures referred to in (a) and (b) helped in reduction of power consumption and utilization of alternative fuel to support the Company in energy conservation.

(d) Total energy consumption and energy consumption per unit of production: The required information given in the prescribed Form-A as annexed herewith.

Form for disclosure of particulars with respect to Technology Absorption

A. RESEARCH AND DEVELOPMENT: The research and development activity is centrally carried out at Construction Development and Innovation center (CDIC), Mumbai India.

B. BENEFITS DERIVED AS A RESULT OF ABOVE R&D: We have been able to launch products like Duraguard MF (Microfiber) from Mejia and Chittorgarh and Zero M with active involvement, consultation and guidance from CDIC.

C. FUTURE PLANS OF ACTION: To further improve product offering, value addition for the customers the following are active projects:

Water resistant Cement.

Composite Cement

Expansion of Zero M basket

Innovations in Packaging options

Duraguard MF production facility at Arasmeta plant

D. EXPENDITURE ON R & D : 0.06 cr

E. TECHNOLOGY ABSORPTION, ADAPTION AND INNOVATION

1. Efforts, in brief made towards technology absorption, adoption and innovation:

- Sharing the knowledge and experience within our plants for maximizing alternative fuel usage

- Adequate Training of Company’s personnel in operations & maintenance

- Manufacturing of in-house grinding aid.

2. Benefits: Improvement in productivity and quality besides reduction in cost.

3. Information regarding technology imported during last five years: Not applicable.

FOREIGN EXCHANGE EARNINGS AND OUTGO

(a) Activities relating to exports, initiatives taken to increase exports, development of new export Markets for products and services and export plans

There were no exports in foreign exchange during FY 18

(b) Total foreign exchange used and earned

Earnings: Rs. Nil

Outgo : Rs. 43.68 Crores

Director Responsibility Statement

In accordance with Section 134(3)(c) of the Companies Act, 2013, your Directors, to the best of their knowledge and belief and according to the information and explanation obtained by them, confirm that:

i. in the preparation of the Annual Accounts for the year ended 31st March, 2018, the applicable accounting standards (IND AS) have been followed along with proper explanation relating to material departures, if any;

ii. the accounting policies selected have been applied consistently and judgments & estimates are made that are reasonable and prudent so to give a true and fair view of the state of affairs of the Company as on 31st March, 2018 and of the profit of your Company for the year ended on that date;

iii. proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013, for safeguarding the assets of your Company and for preventing and detecting fraud and other irregularities.;

iv. the annual accounts for the year ended 31st March, 2018 have been prepared on a going concern basis;

v. that proper internal financial controls were in place and that the financial controls are adequate and were operating effectively;and

vi. that the directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.