MIRA
INFORM REPORT
|
Report Date : |
27.07.2012 |
IDENTIFICATION DETAILS
|
Name : |
JK LAKSHMI CEMENT LIMITED |
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Registered
Office : |
Basantgarh, District Sirohi, Jaykaygram – 307 019,
Rajasthan |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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|
Date of
Incorporation : |
06.08.1938 |
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Com. Reg. No.: |
17-019511 |
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|
Capital
Investment / Paid-up Capital : |
Rs.611.900
millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L74999RJ1938PLC019511 |
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|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
JDHJ02087B |
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PAN No.: [Permanent Account No.] |
AAACJ6715G |
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Legal Form : |
Public Limited
Liability Company. The Company’s Shares
are Listed on the Stock Exchanges. |
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Line of Business
: |
The company is engaged in manufacture of grey cement. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
A (59) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 47010000 |
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|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an
established company having good track.
Financially company is performing well. Trade relations are reported
as fair. Business is active. Payments are reported to be regular and as per
commitments. The company can
be considered normal for normal business dealings at usual trade terms and
conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Long Term Bank Rating |
AA- |
|
Rating Explanation |
Adequate degree of safety regarding timely servicing of financial
obligations and carry low credit risk. |
|
Date |
25.04.2012 |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Short Term Rating |
A1 |
|
Rating Explanation |
Considered as very strong degree of safety regarding timely payment of
financial obligation and carry lowest credit risk. |
|
Date |
25.04.2012 |
RBI DEFAILTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAILTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office/ Factory 1 : |
Basantgarh, District Sirohi, Jaykaygram – 307 019, |
|
Tel. No.: |
91-971-2021363 |
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Fax No.: |
91-971-222238/ 233682 |
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E-Mail : |
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|
Website : |
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Administrative
Office : |
Nehru House, 4, Bahadur Shah Zafar Marg, |
|
Tel. No.: |
91-11-23311112/ 23318239/ 33001142-12 |
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Fax No.: |
91-11-23712680/ 23722251 |
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Factory 2 : |
Village Motibhoyan, Taluka Kalol (N.G.), District
Gandhinagar – 382 721, |
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Factory 3 : |
Village Bajitpur, P.O. Jhamri,
District Jhajjar - 123 305, |
DIRECTORS
As on 31.03.2012
|
Name : |
Mr. Hari Shankar Singhania |
|
Designation : |
Chairman |
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|
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|
Name : |
Mr. Bharat Hari Singhania |
|
Designation : |
Vice Chairman and Managing Director |
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|
Name : |
Mrs. Vinita Singhania |
|
Designation : |
Managing Director |
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|
Name : |
Mr. S.K. Wali |
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Designation : |
Whole Time Director |
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|
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|
Name : |
Mr. Shailendra Chouksey |
|
Designation : |
Whole Time Director |
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|
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|
Name : |
Dr. Raghupati Singhania |
|
Designation : |
Director |
|
Date of Birth/Age : |
65 Years |
|
Qualification : |
B.Sc.,
Honorary Doctorate in Science |
|
Expertise in Specific Functional Areas : |
Industrialist |
|
Date of Appointment : |
04.06.1991
|
|
Name (s) of other Companies in which
Directorships held : |
Chairman: v
Fenner ( Vice Chairman and Managing Director: v
JK Tyre and Industries Limited Director: v
JK Agri Genetics Limited v
DCM Engineering Limited v
Radico Khaitan Limited v
|
|
|
|
|
Name : |
Mr. K.N. Memani |
|
Designation : |
Director |
|
Date of Birth/Age : |
73 Years |
|
Qualification : |
FCA |
|
Expertise in Specific Functional Areas : |
Self
Employed |
|
Date of Appointment : |
05.08.2008 |
|
Name (s) of other Companies in which Directorships
held : |
Director: v
Aegon Religare Life Insurance Company Limited v
Chambal Fertilisers and Chemicals Limited v
Great Eastern Energy Corporation Limited v
Emami Limited v
DLF Limited v
HEG Limited v
ICICI Venture Funds Management Company Limited v
HT Media Limited v
National Engineering Industries Limited v
Spice Mobility Limited v
Spice Digital Limited v
Invest India Industries Limited |
|
|
|
|
Name : |
Mr. B.V. Bhargava |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. N.G. Khaitan |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Raj Kumar Bansal |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Pradeep Dinodia |
|
Designation : |
Director |
|
Date of Birth/Age : |
58 Years |
|
Qualification : |
LLB, FCA |
|
Expertise in Specific Functional Areas : |
Chartered
Accountant in Whole Time Practice |
|
Date of Appointment : |
16.03.2009 |
|
Name (s) of other Companies in which
Directorships held : |
Chairman: v
Shriram Pistons and Rings Limited Director: v
DCM Shriram v
Consolidated Limited v
Hero MotoCorp Limited v
Hero Corporate Services Limited v
DFM Foods Limited v
Micromatic Grinding Technologies Limited v
SPR International Auto Exports Limited v
Ultima Finvest Limited |
|
|
|
|
Name : |
Mr. Ravi Jhunjhunwala |
|
Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. Brijesh K. Daga |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2012
|
Category of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1,003,260 |
0.86 |
|
|
53,069,093 |
45.38 |
|
|
54,072,353 |
46.24 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
54,072,353 |
46.24 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1,797,564 |
1.54 |
|
|
9,560,324 |
8.18 |
|
|
306,230 |
0.26 |
|
|
3,212,736 |
2.75 |
|
|
4,300,344 |
3.68 |
|
|
4,726 |
- |
|
|
4,726 |
- |
|
|
19,181,924 |
16.40 |
|
|
|
|
|
|
16,993,058 |
14.53 |
|
|
|
|
|
|
18,928,009 |
16.19 |
|
|
4,918,850 |
4.21 |
|
|
2,843,318 |
2.43 |
|
|
2,833,118 |
2.42 |
|
|
10,200 |
0.01 |
|
|
43,683,235 |
37.36 |
|
Total Public shareholding (B) |
62,865,159 |
53.76 |
|
Total (A)+(B) |
116,937,512 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
732,554 |
- |
|
|
732,554 |
- |
|
Total (A)+(B)+(C) |
117,670,066 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Foreign BankBUSINESS DETAILS
|
Line of Business : |
The company is engaged in manufacture of grey cement. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity (a) Quantity |
Actual
Production Quantity |
|
Cement |
Tonnes |
47,45,000 |
38,89,094 |
Notes:
(a) As certified by the
Management
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
v State Bank of v Punjab National Bank v IDBI Bank Limited v
Axis Bank
Limited |
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Facilities : |
Notes: LONG TERM BORROWINGS 1.
Secured Redeemable Non-Convertible Debentures( NCDs) are privately placed and
consists of : (i)
10.35% NCDs Series B-2 of Rs.600.000 millions are redeemable in three equal
annual installments at the end of 8th, 9th and 10th
year from the date of allotment i.e. 4th February, 2010. (ii)
10.05% NCDs Series B-1 of Rs.400.000 millions are redeemable in two equal
annual installments at the end of 6th and 7th year from
the date of allotment i.e. 4th February, 2010. (iii) 9.85% NCDs Series A of Rs.1000.000
millions are redeemable in two equal annual installments at the end of 4th
and 5th year from the date of allotment i.e. 4th
February, 2010. 2. NCDs
are secured by a mortgage on the Company's immovable properties located in
the State of Gujarat and are also secured by way of a first charge on all the
immovable and movable fixed assets pertaining to the Company's Cement Unit
situated at Jaykaypuram, Basantgarh, District Sirohi, in the State of 3. Term
Loans from Financial Institution aggregating to Rs.59.800 millions are
secured by way of a first charge on all the immovable and movable properties
pertaining to the Company's Cement Unit situated at Jaykaypuram, Basantgarh,
District Sirohi, in the State of Rajasthan, ranking pari-passu with the
charges created on the said assets subject to the prior charges in favour of
Banks on specified assets and Company's Banks for working capital on
specified movables assets. These Term Loans are repayable in 8 quarterly
installments. 4. Term
Loans from Banks aggregating to Rs.2470.000 millions are secured by way of a
first charge on all the immovable and movable properties pertaining to the
Company's Cement Unit situated at Jaykaypuram, Basantgarh, District Sirohi,
in the State of Rajasthan, ranking pari-passu with the charges created on the
said assets subject to the prior charges in favour of Banks on specified
assets and Company's Banks for working capital on specified movables assets.
These Term Loans are / shall be repayable as under: (a) Term
Loans aggregating to Rs.1548.600 millions are repayable in 8 quarterly
installments. (b) Term
Loan of Rs.571.400 millions is repayable in 16 equal quarterly installments. (c) Term
Loan of Rs.350.000 millions shall be repayable in 32 equal quarterly
installments commencing from 30th June, 2013. 5. Term Loans
from a Bank aggregating to Rs.500.000 millions are secured / to be secured by
way of a first charge on all the immovable and movable properties pertaining
to the Company's Cement Unit situated at Jaykaypuram, Basantgarh, District
Sirohi, in the State of Rajasthan, ranking pari-passu with the charges
created on the said assets subject to the prior charges in favour of Banks on
specified assets and Company's Banks for working capital on specified
movables assets. These Term Loans shall be repayable as under: (a) Term
Loan of 150.000 millions shall be repayable in 20 equal quarterly
installments commencing from 31st March, 2013. (b) Term
Loan of 350.000 millions shall be repayable in 32 equal quarterly
installments commencing from 30th June, 2014. 6. Term
Loans from Banks aggregating to 1647.700 millions are secured by way of an
exclusive charge on certain specified assets of the Company situated at
Jaykaypuram, Basantgarh, District Sirohi, in the State of (a) Term
Loans aggregating to Rs.303.300 millions are repayable in 14 equal quarterly
installments. (b) Term
Loan of Rs.219.400 millions is repayable in 16 equal quarterly installments. (c) Term
Loan of Rs.625.000 millions is repayable in 20 equal quarterly installments. (d) Term
Loan of Rs.500.000 millions shall be repayable in 32 equal quarterly
installments commencing from 30th June, 2013. 7. Term
Loan from a Bank of Rs.700.000 millions is secured / to be secured by way of exclusive
first charge on immovable and movable fixed assets of the Company's Split
Grinding Unit situated at Jhajjar, in the State of 8. Term
Loans from Banks aggregating to Rs.2250.000 millions are secured / to be
secured by way of first pari passu charge on all the immovable and movable
fixed assets of the Company's Greenfield Cement Plant at Durg in the State of
9.
Unsecured Deferred Sales Tax Loan of Rs.860.400 millions includes Rs.38.600
millions payable in one installment during 2012-13 and balance Rs.821.800
millions repayable in 16 quarterly installments commencing from July, 2013. 10.
Fixed Deposits represents the Deposits accepted by the Company from Public
under its Fixed Deposit Scheme having maturity of 2 and 3 years from the date
of deposits. |
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Banking
Relations : |
-- |
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|
|
|
Auditors : |
|
|
Name : |
Lodha and Company Chartered Accountants |
|
Address : |
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|
|
|
|
Subsidiary : |
Hansdeep
Industries and Trading Company Limited |
|
|
|
|
|
v
JK Tyre and Industries Limited (JKTIL) v Rockwood Properties Private Limited (RPPL) |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
250000000 |
Equity
Shares |
Rs.5/-
each |
Rs.1250.000 millions |
|
5000000 |
Preference
Shares |
Rs.100/-
each |
Rs.500.000 millions |
|
|
Unclassified
Shares |
|
Rs.250.000 millions |
|
|
Total |
|
Rs.2000.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
122351924 |
Equity
Shares |
Rs.5/-
each |
Rs.611.800
millions |
|
|
Add:
Forfeited Shares |
|
Rs.0.100
million |
|
|
Total |
|
Rs.611.900 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
611.900 |
611.900 |
611.900 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
11140.000 |
9851.400 |
9595.100 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
11751.900 |
10463.300 |
10207.000 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
8284.300 |
7379.600 |
7775.700 |
|
|
2] Unsecured Loans |
861.600 |
1021.500 |
1441.600 |
|
|
TOTAL BORROWING |
9145.900 |
8401.100 |
9217.300 |
|
|
DEFERRED TAX LIABILITIES |
1233.100 |
1072.200 |
921.000 |
|
|
|
|
|
|
|
|
TOTAL |
22130.900 |
19936.600 |
20345.300 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
13293.300 |
13810.400 |
10629.900 |
|
|
Capital work-in-progress |
2940.500 |
409.000 |
1819.500 |
|
|
|
|
|
|
|
|
INVESTMENT |
4537.500 |
5277.600 |
4805.300 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1200.900
|
1199.200 |
747.700 |
|
|
Sundry Debtors |
382.400
|
279.500 |
289.800 |
|
|
Cash & Bank Balances |
890.300
|
887.500 |
2203.900 |
|
|
Other Current Assets |
23.600
|
44.000 |
0.000 |
|
|
Loans & Advances |
4588.100
|
2470.200 |
3414.700 |
|
Total
Current Assets |
7085.300
|
4880.400 |
6656.100 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1047.400
|
790.000 |
589.800 |
|
|
Other Current Liabilities |
4323.700
|
3384.700 |
1612.100 |
|
|
Provisions |
354.600
|
266.100 |
1363.600 |
|
Total
Current Liabilities |
5725.700
|
4440.800 |
3565.500 |
|
|
Net Current Assets |
1359.600
|
439.600 |
3090.600 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
22130.900 |
19936.600 |
20345.300 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue
from Operations (Net) |
17181.000 |
13222.400 |
14905.000 |
|
|
|
Other Income |
634.000 |
330.500 |
93.100 |
|
|
|
TOTAL (A) |
17815.000 |
13552.900 |
14998.100 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials
consumed |
2859.800 |
2711.100 |
|
|
|
|
Purchase
of Stock-in-Trade |
809.500 |
201.900 |
|
|
|
|
Changes
in Inventories of Finished goods, Work-in-progress and Stock-in-Trade |
5.800 |
(350.600) |
|
|
|
|
Employee
benefit expense |
983.900 |
802.900 |
|
|
|
|
Other
expenses |
9242.300 |
7948.800 |
|
|
|
|
Exceptional Items |
392.400 |
0.000 |
|
|
|
|
TOTAL (B) |
14293.700 |
11314.100 |
10658.900 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3521.300 |
2238.800 |
4339.200 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
796.600 |
604.800 |
230.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2724.700 |
1634.000 |
4109.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1297.300 |
846.100 |
800.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1427.400 |
787.900 |
3308.700 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
339.600 |
196.600 |
897.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1087.800 |
591.300 |
2411.300 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
957.100 |
1043.500 |
1020.700 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Debenture Redemption Reserve |
NA |
0.000 |
280.700 |
|
|
|
Proposed Dividend |
NA |
152.900 |
183.500 |
|
|
|
Interim Dividend |
NA |
0.000 |
122.300 |
|
|
|
Corporate Dividend Tax |
NA |
24.800 |
52.000 |
|
|
|
General Reserve |
NA |
500.000 |
1750.000 |
|
|
BALANCE CARRIED
TO THE B/S |
NA |
957.100 |
1043.500 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
0.000 |
41.600 |
0.000 |
|
|
|
Power and Fuel |
89.700 |
91.300 |
678.400 |
|
|
|
Stores and Spares |
55.900 |
83.800 |
53.000 |
|
|
|
Capital Goods |
168.400 |
263.700 |
76.300 |
|
|
TOTAL IMPORTS |
314.000 |
480.400 |
807.700 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
8.89 |
4.83 |
19.71 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
6.11
|
4.36 |
16.07 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.31
|
5.95 |
22.20 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.00
|
4.22 |
19.14 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.12
|
0.07 |
0.32 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.27
|
1.23 |
1.25 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.23
|
1.10 |
1.87 |
LOCAL AGENCY FURTHER INFORMATION
|
Check List by Info Agents |
Available in Report (Yes /
No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
No |
|
5) Type of Business |
Yes |
|
6) Line of Business |
Yes |
|
7) Promoter’s background |
Yes |
|
8) No. of employees |
No |
|
9) Name of person contacted |
No |
|
10) Designation of contact person |
No |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
No |
|
20) Export / Import details (if applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter involved in |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
Yes |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
No |
|
31) PAN of Proprietor/Partner/Director, if available |
No |
|
32) Passport No of Proprietor/Partner/Director, if available |
No |
|
33) Voter ID No of Proprietor/Partner/Director, if available |
No |
OPERATIONS
The
Company has registered an all-round improvement in its performance over the
previous year 2010-11. Gross sales turnover at Rs.19220.000 millions was higher
by 29% compared to Rs.14910.000 millions in the previous year. PBIDT at
Rs.3920.000 millions is 76% higher than Rs.2230.000 millions in the previous
year, which demonstrates Company's robust performance. The growth in Company's
volume by 14% is much better than the industry's growth of about 7%. The
Company achieved 100% capacity utilisation vis-a-vis industry's average of 75%.
During the
year, the Company further improved its operating efficiencies. There was
reduction in consumption of both power and fuel per unit of production. In
addition, the Company improved usage of alternate fuel of bio-mass from 2% to
6%. These improvements have enabled the Company to also reduce the carbon
footprint.
EXPANSIONS
Company's
various initiatives towards increasing its overall cement production capacity and
undertaking value added products, as under, are making satisfactory progress:
v
The 0.55 Million Tonnes grinding unit in Haryana with an
investment of over Rs.1000.000 millions has commenced commercial production in
April 2012. This has raised the Company's production capacity from 4.7 Million
Tonnes p.a. to 5.3 Million Tonnes p.a.
v
Augmenting the existing capacity of the Company's
clinkerisation at Jaykaypuram by additional 0.33 Million Tonnes p.a. from the
existing 3.96 Million Tonnes p.a. to 4.29 Million Tonnes p.a. at a much lower
capital cost. The additional clinker would enable the Company to further
enhance cement production capacity by about 0.5 Million Tonnes p.a.
v
The 2.7 Million Tonnes Greenfield Project at Durg, in
Chattisgarh with a capital outlay of Rs.12500.000 millions is making
satisfactory progress. It is likely to go in operation by the end of the year
2013. Besides clinkerisation facility at Durg, the Project will have two
additional split location grinding units in different states of
v
On commencement of the above Projects Company's cement
capacity will increase to about 8.5 Million Tonnes.
As
reported earlier, the Company as a part of its growth plans, has also
undertaken revival of Udaipur Cement Works Limited having an installed capacity
of 1.2 Million Tonnes p.a. in
As a part
of Company's overall strategy to increase its footprint into value added
products, the Company is setting up an Aerated Autoclaved Concrete (AAC) Blocks
Project at Haryana, which is likely to be commissioned by March, 2013. This
product would help the Building Industry to save on labour cost, reduce time as
well as bring down the overall cost.
The
Company continues to consolidate its presence in RMC segment and has added two
more RMC Plants during the year. Plans are afoot to further expand RMC capacity
in the coming financial year, thus, taking the total number of RMC Plants to
about fourteen with capacity of 7 lac Cu.Mtr/annum.
OUTLOOK
The fiscal
2011-12 saw an improvement in the growth of cement consumption to 6.9% as
against 5% growth witnessed in the year 2010-11. The second half of FY 11-12
was particularly better when the demand grew by 9%.
Indian
Cement Industry continues to face the challenge of excess capacity build up
which has resulted in low capacity utilization of about 75%. Consequently, the
prices are generally under pressure. The bigger challenge, however, remains
from the continuous rise in the costs, particularly those of fuel and freight
costs which are largely dependent on the petroleum prices being continuously on
the rise.
Government's
increased impetus on urban as well as rural infrastructure development, housing
and an enhanced capital allocation towards infrastructure in the 12th - Five
Year Plan, will be the major growth drivers. Higher allocation by the Govt. of
India for infrastructure projects by over 25% in the Budget Proposal of FY 13,
gives a confidence that the cement demand would get back to higher growth rates
in the coming years. Further, part rationalisaton of the duty structure in the
Budget would also help the Cement Industry to partly mitigate the high tax
burden on this core industry.
MANAGEMENT
DISCUSSION AND ANALYSIS
HIGHLIGHTS
v
Cement Sales (Including Clinker for
v
Gross Turnover at Rs.19150.000 millions higher by 29%
v
PBIDT at Rs.3913.700 millions higher by 75%
v
PAT at Rs.1087.800 millions higher by 84%
v
Clinker production increased to 38 Lac MT - a growth of 8%
v
Capacity utilization at 100% as against 75% of the industry
v
Improvement in Power and Fuel efficiencies
INDUSTRY
SCENARIO
Cement
industry continued to face the challenge on account of low demand for the
entire FY 2011-12. The cement demand grew by only 4% in the first half of the
year FY 2011-12. In the second half, however, things started looking up,
especially in the states which were going for assembly elections, viz. Punjab,
UP, Uttarakhand,
The new
capacity creations, however, also saw a fall during the year as many of the
projects which were in the construction got delayed. The new capacity addition
to the extent of 47 million tonnes in FY 2010-11, fell down steeply to 6
million tonnes in FY 2011-12. This helped to correct the demand supply
imbalance to some extent thereby the price scenario saw an improvement.
Industry
has continuously been taking up the issue of high taxation, especially the high
rate of excise duty which this core item to the basic infrastructure sector
attracts. The government has finally accepted, albeit in part, the industry's
demand and has allowed abatement of 30% against the industry's demand of 55%.
This helped the industry to partly mitigate the burden of higher excise duty
consequent to complete withdrawal of the stimulus package resulting in excise
duty going up from 10.33% to 12.36%.
COMPANY'S
PERFORMANCE
The
stabilization of their Kiln I rehabilitation undertaken in FY 2010-11 helped
the clinker production in FY 2011-12 to notch up a growth of 8%. This coupled with
Company's improved sales performance vis-a-vis its competitors enabled the
Company to achieve a volume growth of 14%. This compares favourably with the
industry's growth of 7% on all
The higher
volume growth also enabled the Company to achieve near 100% capacity
utilization as against industry's 75% and 80% by cement companies in their
marketing zone.
Aided by
improved pricing in different markets of their zone in the second half of the
financial year combined with their growth of 14% enabled the Company to achieve
gross turn over of Rs.19150.000 millions as against Rs.14860.000 millions in
the previous year, registering a growth of 29%. The net sales registered a
growth of 30% at Rs.17110.000 millions. The Company could achieve further
milestones in the areas of power and fuel efficiency.
MARKETING
The Cement
Industry continued to be plagued by the dual problems of oversupply and low
demand. The demand grew by only 6.9% in the year, making this the second
consecutive year of low demand (FY11 - 5%) as compared to healthy growth of 12%
in FY 10, 8% in FY 09 and 10% in FY 08.
Notwithstanding
the above challenges, the Company managed to register an overall growth of 14%
in overall sales vis-a-vis the Industry growth rate of 6.9%. This also enabled
the Company to achieve an overall capacity utilization of close to 100% against
the overall Industry utilization of 75%.
The
Company was able to drive this above average growth with the support of various
aggressive and well focused marketing initiatives. The Company's thrust into
the rural markets continued during the year. Carrying forward its mantra of 'Go
Rural', the rural marketing initiative was extended to the States of Gujarat
and Haryana (besides their home State of
During the
year the Company further consolidated its presence in their home markets of
The
Company has increased its network of large and mid size dealers during the year
which has enabled it to increase volumes in the trade segment. Company has also
undertaken various CRM activities and loyalty programmes wherein their brand
ambassador Mr. Om Puri has been featured prominently for better mass appeal and
higher impact.
Company's
other interactive branding promotions elicited excellent response as also from
the key influence segment such as architects, contractors, masons, etc. In
recognition of Company's brand building activities it has received the
prestigious "Star Brand" award instituted by Planman Media, which
reinforces the supremacy, legacy, sustainability and credibility of their
brand.
The
Company has further consolidated its presence in the Value Added Products
segment of RMC / POP where the total turnover has increased by 13% to over
Rs.1340.000 millions. Two new RMC plants have been set up in
Keeping in
view their proposed expansion in Durg, the Company has undertaken a large scale
market research study to gain insights of the Eastern markets and build up a
sound and well structured programme for launching their products in the these
Markets.
AWARDS
The
Company continued to be acknowledged and recognized by numerous awards in
various diverse fields during the year. Some of the notable awards received by
the Company during the year are as under:
v
The Company was awarded the "Excellence Award" in
"Cement" Sector, instituted by the Rajasthan Chamber of Commerce and
Industry.
v
GreenTech HR Awards 2012, under the category "Innovation
in Employee Retention strategy".
v
"Energy Conservation Award", Certificate of Merit.
v
Star News HR and Leadership Award under the category
"Learning and Talent Initiative Excellence".
v
'Energy Conservation Award 2011' for being First amongst
Cement Industry of Rajasthan.
v
JK Lakshmi Cement Limited has been awarded for the fourth
time with "Rajasthan Productivity Excellence Award".
v
JK Lakshmi Cement has been awarded with "Best Employer
Award" third time in a row from The Employer's Association of Rajasthan.
v
JK Lakshmi Cement has been presented with the Golden Peacock
HR Excellence Award 2011.
v
JK Lakshmi Cement has been chosen as a "Star
Brand".
Beside
above Their Quality Circle Teams excelled at the National Convention on Quality
Circles (NCQC 2011)
1. Think Quality Circle (Instrumentation
Dept.) - Par Excellent
2.
3.
4.
5.
OUTLOOK
FOR CEMENT INDUSTRY AND STRATEGIC IMPERATIVES
Residential
real estate, infrastructure, and commercial real estate are three major
segments which account for almost 95% of total cement consumption in the
country. The respective share of these three major segments in total cement
demand is about 63%, 20%, and 13%.
Infrastructure
segment which includes Power, Telecom, Railways, Irrigation, Water Supply,
Ports, Airports, and Roads; though relatively smaller in size as compared to
residential real estate has much higher intensity of construction.
Therefore
any slowdown in the construction activities in the infrastructure segment is
likely to have greater adverse impact on cement demand as compared to slowdown
in rest of the segments.
Within infrastructure
segment, 5 sectors which have 60% or more construction intensity are mostly
dependent on public financing i.e. financing by either of State or the Centre
as the case may be.
Political
volatility and uncertain global economic environment has adversely impacted
investments in construction intensive infrastructure segments, which, for the
first time in last 20 years of cement industry history, has led to cement
demand growth being lower than the GDP growth in these two years.
As per a
McKinsey Study Report "Sustaining Infrastructure Delivery for long term
demand" released during "India Infrastructure Summit 2011 Achieving
Trillion Dollar Dreams" in Sept. 2011, key infrastructure sectors like
Railways and Roads, where bulk of the investments are by the government, the
actual achievements have been short of 11th five year plan projections.
In
residential and commercial real estate sector too there has been an environment
of uncertainty owing to variety of factors such as labour shortage, increasing
interest rates, judicial interventions etc. These uncertainties over last 2
years have also adversely contributed to lower demand growth for cement.
Going
forward in short to medium term, they expect the uncertain and volatile
environment to continue for a while which may imply a moderate growth of about
7 -8% in cement demand for next 1 - 2 years. These years shall also see
national general elections happening in 2014 and some major states going for
elections in 2012 and 2013. In the past they have seen construction activity
picking up with expediting of infrastructure projects during the election years
and hence going by possibility of same happening on positive side the cement
demand growth may touch 9% or more.
Beyond the
horizon of two years,
The
Company keeping in line with expected short, medium, and long term trends is
following a path of aggression with caution. In short run it is focusing on
strategically located grinding units and augmenting of capacities at existing
locations with minimal capital expenditure. The recently commissioned grinding
unit at Jharli, Jhajjar District in Haryana is strategically located adjacent
to the source of fly ash and in the influence zone of Delhi Mumbai Industrial
corridor (DMIC). The other manufacturing facilities including integrated cement
plant at Sirohi District in Rajasthan too are located along with DMIC, which
when fully operational shall see massive spurt in construction activity and
quantum cement demand growth. On the other hand the green field cement plant at
Chattisgarh is making steady
time bound progress and shall be operational by end of 2013, when there is
overall expectation of jump in cement demand. The revival of UCWL too is on
track. Both Chattisgarh and UCWL have further growth potentials that can be
leveraged as and when opportunities arise.
In
addition to growth in core cement business, the Company is also investing for
growth in Value Added Products such as RMC, Gypsum Plasters, and AAC Blocks.
The first AAC block plant with state of art technology is expected to be
operational in the coming financial year. These products meet the ever growing
customer requirements of labour and energy saving products.
Contingent liabilities in respect of claims
not accepted by the Company (matters in appeals) and not provided for are as
follows:
|
Particulars |
31.03.2012 (Rs. in millions) |
|
a)
Excise duty |
158.800 |
|
b) Sales
tax
|
158.600 |
|
c)
Income Tax
|
68.400 |
|
d) Land
tax
|
13.100 |
|
e) Other
matters
|
118.000 |
|
Total |
516.900 |
FIXED ASSETS:
Tangible Assets
v
v
v
Buildings
v
Plant and Machinery
v
Furniture Fixtures and Equipments
v
Office Equipments
v
Vehicles, Aircraft and Locomotives
v
Railway Siding
Intangible Assets
v
Computer Software
WEBSITE DETAILS:
PRESS RELEASE
PERFORMANCE FIGURE FOR THE MONTH MAY 2012
Qty:
|
Particulars |
May 2012 |
April'12 -
May'12 |
|
|
|
|
|
Cement Production |
3.92 |
7.16 |
|
|
|
|
|
Cement Despatches |
3.89 |
7.11 |
ANNUAL FINANCIAL RESULTS 2011-2012
16.5.2012
JK LAKSHMI CEMENT
has reported substantial progress in its working both for the IVth quarter
January-March 2012 and for the 12 month period April 2011-March 2012 compared to
working in the corresponding period of the previous financial year. It has
reported a 28% growth on its net sales in the Ivth quarter to Rs.5263.300 millions as against a turnover of about Rs.4120.000 millions in the corresponding quarter of the previous
year. Its gross turnover for the twelve month period April 2011 to March 2012
stood at Rs.19145.900 millions and net sales at Rs.17110.600 millions, showing a jump of 30% over the
corresponding twelve month period of the previous year. Company’s Operating
Profit at Rs.1468.200 millions during the IVth quarter has shown a healthy
jump of 63% over PBIDT of Rs.899.600 millions
over the corresponding quarter of the previous year. Operating Profit for the twelve
month period after taking into account other income at Rs.3913.700 millions reflects a steep jump of 75% as compared to
the Operating Profit of 2010-1 at Rs.2238.800 millions.
During the quarter
Company has with retrospective effect changed the method of providing
depreciation on Captive Power Plants from “Straight Line’ to ‘Written Down
Value’ resulting in an additional depreciation charge of Rs.244.400 millions for the quarter/year and Rs.392.400 millions for the earlier years. By changing this method,
company’s Profit after Tax for the quarter and for the year have been reduced
by Rs.430.200 millions. Even taking into account the impact of this
change, company’s Profit Before Tax stood at Rs.1427.100 millions, which was 81% jump over PBT of Rs.787.900 millions from the financial year 2010-11. Company’s
Net Profit for the FY 2011-12 stood at Rs.1087.800 millions as against Rs.591.300 millions in the financial year 2010-11.
Company is actively
pursuing buy back of its equity shares, the decision of which was taken by the
Board of Directors in their meeting held in February 2012 and the process of
which got started in the last week of March 2012 after completion of the
necessary formalities.
As per Mrs. Vinita
Singhania, Managing Director, company has been able to report much improved
results on account of 14% growth in its sales, 100% capacity utilisation of its
assets and improvements in all-round efficiencies. She also informed that
company’s expansion plans are moving ahead as per schedule and it has recently
commissioned its Grinding Unit in Haryana with a capacity of about 0.6 million
tonne. According to her, company is further augmenting the capacity of its
existing kilns in Rajasthan. Company’s
The Board of
Directors in their meeting held on 16th May, 2012 recommended a
dividend of 40%.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.56.37 |
|
|
1 |
Rs.87.44 |
|
Euro |
1 |
Rs.68.05 |
INFORMATION DETAILS
|
Report Prepared
by : |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
59 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.