MIRA INFORM REPORT

 

 

Report Date :

20.06.2012

 

IDENTIFICATION DETAILS

 

Name :

ANJANI PORTLAND CEMENT LIMITED

 

 

Formerly Known As :

SHEZ CEMENTS LIMITED

 

 

Registered Office :

Sithanilayam, 153, Dwarakapuri Colony, Punjagutta, Hyderabad – 500082, Andhra Pradesh.

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

17.12.1983

 

 

Com. Reg. No.:

01-004323

 

 

Capital Investment / Paid-up Capital :

Rs.183.896 Millions

 

 

CIN No.:

[Company Identification No.]

L26942AP1983PLC004323

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

HYDA01742G

 

 

PAN No.:

[Permanent Account No.]

AACCA8115F

 

 

Legal Form :

A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.

 

 

Line of Business :

Manufacturer of Cement

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (45)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 2560000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having satisfactory track record. The company profitability appears to be dip due to increase in interest and depreciation charges. However, trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitments.

The company can be considered for normal business dealing at usual track 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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOCATIONS

 

Registered Office :

Sithanilayam, 153 Dwarakapuri Colony, Punjagutta, Hyderabad – 500082, Andhra Pradesh, India

Tel. No.:

91-40-23351696/97

Fax No.:

Not Available

E-Mail :

avrao_anjanicement@yahoo.com

Website :

www.anjanicement.com

 

 

Corporate Office :

Anjani Cement Centre, Plot No.7 and 8,  D.No. 8-2-248/1/7, Nagarjuna Hilla Main Road, Punjagutta, Hyderabad-500 082, Andra Pradesh, India.

Tel No.:

91-40-23353038 / 23353096 / 3106

Fax No.:

91-40-23353093

Email:

info@anjanicement.com

 

 

Factory  :

Chintalapalem (Village), Mellacheruvu (Mandalam), Nalgonda (District) – 508 246, Andhra Pradesh, India

Tel No.:

91-8683-230160 / 230158 / 230168 / 217560 / 217230

Fax No.:

91-8683-230024

Email:

works@anjanicement.com

 

 

Branches :

Located at:

  • Visakhapatnam
  • Kakinada
  • Vijayawada
  • Chennai
  • Bhimavaram
  • Bangalore

 

 

DIRECTORS

 

As on 31.03.2011

 

Name :

Mr. K.V. Vishnu Raju

Designation :

Chairman and Managing Director

 

 

Name :

Mr. P.V.R.L. Narasimha Raju

Designation :

Executive Director

 

 

Name :

Mr. R.A. Rama Raju

Designation :

Director

 

 

Name :

Mr. P.S. Ranganath

Designation :

Director

 

 

Name :

Mr. P.V. Subba Rao

Designation :

Director

 

 

Name :

Mr. P. R. Raju

Designation :

Director

 

 

 

 

KEY EXECUTIVES

 

Name :

Mr. S.V.S. Shetty

Designation :

Chief Executive Officer

 

 

Name :

Mr. R.V.A. Narasimha Rao

Designation :

Chief Financial Officer

 

 

Name :

Mr. S.N. Raju

Designation :

Sr. Vice President (Operations)

 

 

Name :

Mr. N. Venkata Raju

Designation :

Assistant Vice President (Works)

 

 

Name :

Mr. Ch. Gandhi Raju

Designation :

Vice President (Marketing)

 

 

Name :

Mr. P. Sitharama Raju

Designation :

Senior General Manager (Works)

 

 

Name :

Mr. P.Satyanarayana Raju

Designation :

Group General Manager (HR and MS)

 

 

Name :

Mr. P. Ganapathi Raju

Designation :

Senior General Manager (Quality Control)

 

 

Name :

Mr. M. Nagabhushana Rao

Designation :

Senior General Manager (Mechanical)

 

 

Name :

Mr. Y. Eswara Reddy

Designation :

General Manager (Marketing)

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2012

 

Names of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

10,989,130

59.76

Bodies Corporate

365,000

1.98

Sub Total

11,354,130

61.74

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

11,354,130

61.74

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

34,400

0.19

Financial Institutions / Banks

7,800

0.04

Sub Total

42,200

0.23

(2) Non-Institutions

 

 

Bodies Corporate

1,385,276

7.53

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs. 0.100 million

2,943,127

16.00

Individual shareholders holding nominal share capital in excess of Rs. 0.100 million

2,640,183

14.36

Any Others (Specify)

24,681

0.13

NRIs/OCBs

21,749

0.12

Clearing Members

2,932

0.02

Sub Total

6,993,267

38.03

Total Public shareholding (B)

7,035,467

38.26

Total (A)+(B)

18,389,597

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

-

-

        (1) Promoter and Promoter Group

-

-

        (2) Public

-

-

  Sub Total

-

-

Total (A)+(B)+(C)

18,389,597

-

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Cement

 

 

Products :

Product Description

Item Code No.

Ordinary Portland Cement

25231000

Clinker

25231000

 

 

PRODUCTION STATUS AS ON 31.03.2011

 

Particulars

31.03.2011

Licensed

1160000 TPA

Installed Capacity

1160000 TPA

Actual Production

651278 TPA

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :
  • State Bank of India
  • Punjab National Bank
  • Indian Overseas Bank
  • State Bank of Hyderabad

 

 

Facilities :

Secured Loan

As on

31.03.2011

(Rs. in

Millions)

As on

31.03.2010

(Rs. in

Millions)

Term Loans

1203.706

1214.635

Working Capital Loans

364.468

190.337

Others

4.540

6.817

Total

1572.714

1411.789

Notes:

(a)    Term Loans:

Term loans are secured by a first/joint equitable mortgage by deposit of title deeds, with State Bank of India, leader of consortium bankers, of all the Company’s immovable properties, both present and future and hypothecation of all movable assets (other than book debts) ranking pari-passu with the charges created in favour of the Consortium Bankers, State Bank of India, Punjab National Bank, Indian Overseas Bank, and State Bank of Hyderabad.

 

The term loan are further secured by the personal guarantee of Chairman                                                  and Managing Director and Executive Director.

 

(b)    Working Capital:

Cash Credit facility with consortium Banks is secured by hypothecation of stocks of raw materials, stock in process, finished goods, spares and book debts and second charge on Fixed Assets and personal guarantee of Chairman and Managing Director and Executive Director.

Unsecured Loan

As on

31.03.2011

(Rs. in

Millions)

As on

31.03.2010

(Rs. in

Millions)

Public Deposits

25.051

13.710

Unsecured Loans

822.199

563.656

Total

847.250

577.366

 

 

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

M. Anandam and Company

Chartered Accountant

Address :

7 ‘A’, Surya Towers, S.P. Road, Secunderabad – 500003, Andhra Pradesh, India

 

 

Subsidiaries :
  • Vennar Ceramics Limited
  • Hitech Print Systems Limited

 

 

Enterprises owned or significantly influenced by key management personnel :

  • Sai Aditya Foods and Retail Private Limited
  • Anjani Projects and Construction Limited
  • Sri Vishnu Educational Society.

 

 

CAPITAL STRUCTURE

 

As on 31.03.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1,000,000

14% Cumulative Redeemable Preference Shares

Rs. 10/- each

Rs. 10.000 Millions

30,000,000

Equity Shares

Rs.10/- each

Rs.300.000 Millions

 

Total

 

Rs.310.000 Millions

 

 

Issued Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

18,394,463

Equity Shares

Rs.10/- each

Rs.183.945 Millions

 

 

 

 

 

 

Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

18,389,597

Equity Shares

Rs. 10/- each

Rs.183.896 Millions

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2011

31.03.2010

31.03.2009

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

183.896

183.896

183.896

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

458.225

469.562

374.113

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

642.121

653.458

558.009

LOAN FUNDS

 

 

 

1] Secured Loans

1572.714

1411.789

145.406

2] Unsecured Loans

847.250

577.366

354.161

TOTAL BORROWING

2419.964

1989.155

499.567

DEFERRED TAX LIABILITIES

96.165

92.769

31.935

 

 

 

 

TOTAL

3158.250

2735.382

1089.511

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

2342.627

2176.218

556.740

Capital work-in-progress

4.083

2.456

177.147

 

 

 

 

INVESTMENT

164.695

164.695

164.695

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
337.821
123.354

83.605

 

Sundry Debtors
148.747
111.628

84.280

 

Cash & Bank Balances
22.749
25.985

24.887

 

Other Current Assets
0.000
0.000

0.000

 

Loans & Advances
387.329
312.046

211.970

Total Current Assets
896.646

573.013

404.742

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
207.842

147.810

85.103

 

Other Current Liabilities
67.799
40.853

36.283

 

Provisions
(25.840)
(7.663)

92.427

Total Current Liabilities
249.801

181.000

213.813

Net Current Assets
646.845

392.013

190.929

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

3158.250

2735.382

1089.511

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

1746.952

1226.283

1291.674

 

 

Other Income

51.383

34.316

2.295

 

 

TOTAL                                     (A)

1798.335

1260.599

1293.969

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Material consumption

375.757

323.367

307.022

 

 

Manufacturing administrative and selling expenses

1189.874

650.485

576.020

 

 

Increase/Decrease in stocks

(166.737)

(14.505)

17.278

 

 

Extraordinary item

0.000

0.000

40.000

 

 

TOTAL                                     (B)

1398.894

959.347

940.320

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

399.441

301.252

353.649

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

259.014

53.375

62.914

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

140.427

247.877

290.735

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

127.478

39.946

37.293

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

12.949

207.931

253.442

 

 

 

 

 

Less

TAX                                                                  (I)

7.188

91.038

86.716

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

5.761

116.893

166.726

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

441.562

349.113

223.660

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

0.000

3.000

9.000

 

 

Dividend

14.712

18.390

27.585

 

 

Tax on Dividend

2.386

3.054

4.688

 

BALANCE CARRIED TO THE B/S

430.225

441.562

349.113

 

 

 

 

 

 

Earnings Per Share (Rs.)

0.31

6.35

9.07

 

 

 

 

QUARTERLY  RESULTS

 

PARTICULARS

 

30.06.2011

30.09.2011

31.12.2011

31.03.2012

Type

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Net Sales

726.930

709.200

636.990

879.390

Total Expenditure

559.420

542.370

490.310

745.350

PBIDT (Excl OI)

167.510

166.830

146.680

134.040

Other Income

7.950

7.800

8.590

55.170

Operating Profit

175.460

174.630

155.270

189.220

Interest

81.950

85.500

90.030

80.210

PBDT

93.510

89.130

65.240

109.010

Depreciation

39.130

33.450

32.810

32.940

Profit Before Tax

54.390

55.680

32.430

76.070

Tax

19.250

14.620

1.630

25.020

Profit After Tax

35.140

41.060

30.810

51.050

Net Profit

35.140

41.060

30.810

51.050

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)
0.32

9.27

12.88

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
0.01

16.96

19.62

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
0.40

7.56

26.36

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.02

0.32

0.45

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
4.16

3.32

1.28

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
3.59

3.17

1.89

 

 

 

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

--

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

--

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

 

 

REVIEW OF OPERATIONS:

 

The company has produced 6,51,278 MT. of cement during the current financial year compared to the previous year production of 4,97,723 MT. of cement registering an increase of 31 %. The cement sold during the year stands at 6,38,449 MT. compared to 4,94,362 MT. during the previous financial year showing an increase of 29%.

 

The gross sales in terms of value during the year were at Rs.2237.987 Millions as against Rs.1514.705 Millions during the previous financial year translating into an increase of 48 %. Similarly the Profit Before Tax for the current financial year amounts to Rs.12.949 Millions against Rs.207.931 Millions during the previous financial year. The profit after tax for the year stands at Rs.5.761 Millions compared to Rs.116.893 Millions during the previous financial year.

 

As can be observed, there is a significant improvement both in the physical terms and financial terms during the year compared to the previous year. The main reasons for the steep fall in profit before tax during the year 2010-11 are as follows:

 

(a) The interest cost during the year has gone up to Rs.259.014 Millions compared to previous year amount of Rs.53.375 Millions (an increase by Rs.205.639 Millions). This increase is basically on account of the interest on the project cost which is fully to be charged to Profit and Loss A/c during this year which was not there during the

previous financial year.

 

(b) The higher depreciation during the year of Rs.127.478 Millions compared to that of Rs.39.946 Millions during the previous financial year (an increase of Rs.87.532 Millions) which is also due to the same reason as that of interest.

 

The company could achieve higher production and a higher sales value/turnover inspite of the fact that there is a steep decline in the prices of cement during the financial year compared to the previous financial years. The drop in price realization is more significant in the state of Andhra Pradesh compared to the other markets in the country.

 

The cement industry, with its fluctuating fortunes, is known for abnormal variations in the prices owing to several reasons including the changes in demand for the product, supply side changes, increase in installed capacities, changes in the Government spending pattern, emphasis on infrastructure projects, political Situation etc. During the year there were several disturbances in the state of Andhra Pradesh which have had an adverse impact on the price realization as well as on cement off take.

 

The statistics available show that there is negative growth in Andhra Pradesh for cement demand by about 12% during the year 2010-11 compared to the positive growth of 2.8 % in the year 2009-10 and positive growth of 19% during 2008-09. This negative growth has shown an adverse impact on the bottom line of the company, though there is a significant improvement in the sales turnover.

 

Expansion Project

 

A mention has been made about expansion project taken up by the company in previous annual report. The company could achieve higher production during the year 2010-11 partly owing to the additional capacity created by the expansion project, however, owing to the reasons explained above the production has not yet reached the full capacity utilization due to the adverse market conditions and it is estimated that the year 2011-12 will witness a significant increase in both the quantity terms and in value terms as well as the profitability.

 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

 

Cement Industry Structure and Development:

The cement industry in India has an installed capacity of 254 million tonnes p.a out of which 55 million tonnes comes from the state of Andhra Pradesh.

 

There has been a spurt in total cement installed capacity in India where as the demand for the product during the year has not increased keeping in pace with the increase in production capacities. In these times of highly competitive position in cement industry, an effective cost control and better logistics management will be playing key role to achieve a sustainable growth in the long run. Having contributed to the increase in the total cement capacity, the company would now focus more on cost control and increased/effective utilization of the material/resources which would automatically translate into better value for the stakeholders.

 

Opportunities and Challenges:

 

Opportunities:

The year 2011-12 is viewed as an year of opportunity. The company plans to lay increased emphasis on the marketing more particularly because the additional production from the expansion project has to be marketed to the full benefit of the shareholders. In this context the year 2011-12 is also considered as year of marketing. It is expected that inspite of the impact of continuously raising inflation and reduction in the growth of industrial production and not so bright general industrial scenario, the outlook for the cement remains positive in the long run. With the expected growth in spending on infrastructure, roads, port and power projects, housing and urban infrastructure and the irrigation projects, the growth in demand for the cement in the year 2011-12 is expected to be better and as a result the company should be able to achieve higher and better realization for the product. The company has also been able to expand its presence in the outside markets such as the states of Tamilnadu, Kerala, Orissa, Karnataka and Maharashtra and this larger geographical spread should help in strengthening the market for the product of the company and contribute to the higher turnover and profitability.

 

Challenges:

Cement industry has faced a downtrend in the later part of 2009-10 and first half of the 2010-11 particularly in the state of Andhra Pradesh. However, the management is confident that the worst phase for cement is over and there has been recovery in the demand and price realization from the third quarter of the financial year 2010-11.

 

The challenges for the year 2011-12 and the subsequent two years will be to enhance their share in the outside markets such as Kerala, Tamilnadu, Orissa, Maharashtra and Karnataka and the company is continuously scanning the market scenario and enhancing the sales in the areas in which the company could get a better realization, however, without altogether ignoring any addressable markets. Necessary mechanism is put in place to ensure that this continuous market knowledge is obtained and used to boost the revenues and profits.

 

Segment Wise Performance:

The company’s main business activity is manufacturing of Cement which falls in a single segment.

 

Over view:

The industry, in general, could not achieve its expected off take from its expanded capacities due to lack of Government spending on infrastructure caused by the global crises and unstable political situation. Similarly, private sector plans for buildings etc., also lagged behind considerably due to the uncertain situation with overseas clients caught in the throes of the economic meltdown.

 

Presently, there are signs of positive return to the growth phase in most of the sectors and also in infrastructure development which will spur Government spending. These signs coupled with a revival in building activity in the realty sector should give a boost to demand and prices in the cement industry.

 

Considering the multiple areas of concern for achieving sustained growth, the company is looking at opportunities on solutions for cost control, creation of adequate transportation facilities, creating distribution bases such as grinding and packing units nearer the consumer cluster, venturing into backward and forward integration etc.

 

Outlook:

The industry is however highly positive on the long term outlook and is going in for creation of additional capacities, encashing on consolidation opportunities to synergize on operations and reduce production costs. The outlook is based on the imperative need for infrastructure creation in the country, more homes for the citizens, better and additional commercial and hospitality projects etc.

 

The recovery in Housing Sector shall also facilitate to improve the demand further. It is also pertinent to note here that the per capita consumption of cement in India falls a way below the world per capita consumption and a country which is on progressive and developing path has to come close to that of world per capita consumption and this factor alone shall give a great hope for cement industry in India.

 

In the final result, cement as a product has come to be seen as one of the ingredients for the improvement of the country’s economy and standard of living and will take its place as an evergreen product.

 

CONTINGENT LIABILITIES NOT PROVIDED FOR:

Claims against the Company not acknowledged as debt:

PARTICULARS

 

31.03.2011

(Rs. In Millions)

31.03.2010

(Rs. In Millions)

Disputed Liability in respect of Tax demands
9.543

0.000

Disputed Liability in respect of FSA charges payable to APCPDCL
4.350

0.000

Disputed Demand charges payable to AP Transco
2.529

2.529

TOTAL
16.422

2.529

 

AUDITED STANDALONE FINANCIAL RESULTS FOR QUARTER/YEAR ENDED 

31ST MARCH, 2012

 [Rs. in millions, except for share data]

 

 

Particulars

Quarter ended

Year ended

31.03.2012

Audited

31.12.2011

Unaudited

31.03.2012

Audited

1) Net sales / Income from operations

879.390

636.994

2952.520

   Total Income

879.390

636.994

2952.520

2) Expenditure

 

 

 

a) Cost of material comsumed

111.665

101.206

421.453

b) Purchase of Traded Goods

1.041

0.000

1.041

c) Change in inventories of finished goods and work-in-progress

87.838

(54.523)

80.903

d) Employee Benefits Expense

27.160

28.895

114.000

e) Power and Fuel

286.111

237.241

919.967

f) Depreciation

32.940

32.810

138.327

g) Other Expenditure

231.532

177.497

800.088

Total Expenditure

778.287

523.126

2475.779

3) Profit from Operations before other Income and finance Costs

101.103

113.868

476.741

4) Other Income

55.170

8.590

79.505

5) Profit before Finance Costs

156.273

122.458

556.245

6) Finance Costs

80.205

90.027

337.684

7) Profit from Ordinary Activities before Tax

76.068

32.431

218.562

8) Tax Expenses

25.024

1.626

60.517

9) Net Profit for the period

51.045

30.806

158.045

10) Paid-up equity share capital

183.896

183.896

183.896

(Face value of Rs.10/- each)

 

 

 

11) Reserves excluding Revaluation

-

-

-

Reserves as per balance sheet of  previous     accounting Year

-

-

590.622

12)Earning Per Share

 

 

 

a) Basic and diluted EPS before Extraordinary items for the period, for the year to date and for the previous year(not to be annualised)

2.78

1.68

8.59

b) Basic and diluted EPS after Extraordinary items for the period, for the year to date and for the previous year(not to be annualised)

2.78

1.68

8.59

13) Public Shareholding

 

 

 

Number of Shares

7035467

7035467

7035467

Percentage of Shareholding

38.26

38.26

38.26

Promoters and Promoter group

 

 

 

a) Pledged/Encumbered

 

 

 

Number of shares

6618100

6618100

6618100

Percentage of Shares (as a % of the total shareholding of promoter and promoter group)

58.29

58.29

58.29

Percentage of Shares (as a % of the total share capital of the Company)

35.99

35.99

35.99

b) Non-encumbered

 

 

 

Number of shares

4736030

4736030

4736030

Percentage of Shares (as a % of the total shareholding of promoter and promoter group)

41.71

41.71

41.71

Percentage of Shares (as a % of the total share capital of the Company)

25.75

25.75

25.75

 

Notes:

(1)     The segment results are not applicable as the company’s main business activity falls within a single segment.

(2)     The above results were reviewed by the Audit committee and approved at the meeting of the Board of Directors held on 28.05.2012.

(3)     The Board has recommended a dividend at 12% (Rs.1.20 per share) on the equity of Rs.10/- each for the year ended 31st March, 2012.

(4)     The figures of last quarter for the current year are the balancing figures between the audited figures in respect of the full financial year ended 31st March and the unaudited published year to date figures up to third quarter ended 31st December which were subjected to a limited review.

(5)     In terms of Listing Agreement, details of Investors complaints for the quarter ended 31.03.2012’ beginning – Nil, received and disposed off – Nil and pending – Nil.

(6)     The figures of previous periods have been regrouped wherever necessary.

 

 

STATEMENT OF ASSETS AND LIABILITIES AS AT THE END OF THE YEAR 

31ST MARCH, 2012

                                                                                                                                                Stand alone  

 

PARTICULARS

 

31.03.2012

(Rs. In Millions)

I.

EQUITY AND LIABILITIES
 

(1)

Shareholder’s Funds
 

 

(a) Share Capital
183.896

 

(b) Reserves and Surplus
590.622

 

 
 

(2)

Non-Current Liabilities
 

 

(a) Long Term Borrowings
1695.387

 

(b) Deferred Tax Liabilities (Net)
120.164

 

(c) Other Long Term Liabilities
14.331

 

(d) Long Term Provisions
7.161

 

 
 

(3)

Current Liabilities
 

 

(a) Short Term Borrowings
367.849

 

(b) Trade Payables
181.743

 

(c) Other Current Liabilities
488.534

 

(d) Short Term Provisions
46.357

 

TOTAL
3696.044

 

 
 

II

ASSETS
 

(1)

Non-Current Assets
 

 

(a) Fixed Assets
 

 

   (i) Tangible Assets
2288.742

 

   (ii) Capital work-in-progress
92.324

 

(b) Non-current investments
164.695

 

(c) Long Term Loans and Advance
42.295

 

 
 

(2)

Current Assets
 

 

(a) Inventories
295.638

 

(b) Trade Receivables
209.497

 

(c) Cash and Cash Equivalents
36.028

 

(d)Short Term Loans and Advances
566.825

 

TOTAL
3696.044

 

 

Fixed Assets:

 

  • Freehold Land
  • Buildings
  • Plant and Machinery
  • Vehicles
  • Office Equipment
  • Furniture and Fixtures

 

 

AS PER WEBSITE DETAILS

 

HISTORY:

 

Subject is a decade old company with a proud Legacy of Cement to display.  The genesis of Anjani was inspired and motivated by the pioneer in cement industry Padma Bhushan Dr. BV Raju (former chairman of Cement Corporation of India), who has been instrumental in the growth of cement industry in India, especially Andhra Pradesh. Trained and sculpted by this cement luminary, the architects of the subject have built its organizational structure on a very strong pedestal of infrastructure, technology, experienced human resource  and strong social commitment.

A take ­ over of an ailing company called M/S Shez Cement Private Limited in 1999 set the beginning of the onerous journey to the top. The first batch of clinker produced after the takeover stood up to all set quality norms. After the initial hitches and subsequent advancement in infrastructure, Anjani tread the growth path.

PROFILE:

Subject is a popular brand in south India for its quality and commitment to service. The Company, which came to be Anjani Portland Cement Limited in 1999, before the completion of a decade of production, has been awarded the ‘Fastest Growing Cement Company’ at Construction World Annual Awards in 2009.


Starting with initial production capacity of 0.3 million tonnes per annum in 1999, the Company has now achieved a quantum shift in its production capacity to 1.2 million tonnes per annum. The second plant powered with the latest and modern technology and infrastructure has started operations in 2010 and has poised the company on an energized growth path to achieve new performance levels and service standards.


The professional teams of technical, financial, marketing, strategic planning and human resources have served through prestigious capacities in the industry with integrity and repute for more than 30 years. The responsibility and accountability of these professionals is evident in their good management practices and shared objectives.  The present standing of Anjani Cement is credited to the commitment of this notch team.

 

The cement is only as good as its raw materials and primarily depends on the quality of the lime stone used. The limestone mines of Anjani are acclaimed as the best mines amongst the cement brackets of Nalgonda district, thus confirming the superior quality of the cement produced.


With its exemplary growth in production and services, Anjani Cement has captured the market in Andhra Pradesh and competes with the national players in the industry. Anjani has now extended its reach to Tamil Nadu, Orissa and Karnataka and also made forays into the markets of Maharashtra. An excellent dealer network system ensures successful spread and sales of the cement within and outside the state.


Sound Research and Development ensures continuous innovation in technology and realization of best quality standards. Anjani Powder Research Centre conducts research and takes up relentless testing procedures of cement of all available brands for improvement and standardization of the products.


Anjani Cement also makes persistent effort to restore and maintain the eco balance and greening process in and around the cement plants. The RABH technology ensures minimum air pollution in and around the plant.  Efforts are made towards greening the environment by planting and nurturing trees and other flora in the cement plant vicinity.

 

As a responsible corporate, Anjani cement has taken conscious and decisive measures to develop knowledge based society by providing quality education for the families of the employed and neighboring villages. An innovative venture – BV Raju Institute of Cement Technology was initiated by the company to train the rural youth in cement technology and production for potential employment in cement industries.

 

Chairman & Managing Director:

 

This thriving organization is escalating the growth path under the competent leadership of the Chairman and Managing Director Mr. KV Vishnu Raju who completed his B.Tech in Chemical Engineering from R.E.C., Trichy and M.S. from the Michigan Technological University USA. He started his career with DuPont, USA and later extended his knowledge and furthered his skills at indigenous cement industry in India and elevated the company to unforeseen heights.

 

Subject is making firm derivatives in the aegis of his able leadership.

 

Executive Director:

 

Mr. P.V.R.L. Narasimha Raju is a commerce graduate from Osmania University and has extensive experience in Marketing and Finance in Cement, Construction, Ceramics and Agri- Business. He is actively involved in the marketing activities of Anjani Portland Cement Limited and is also instrumental in execution of Vennar Ceramics power plant.

 

Directors:

 

Mr. R.A. Rama Raju is a Technical Director with over 34 years of experience in the cement industry. He started his career in A.P. Scooters, later served Raasi Cement Limited and Priyadarshini Cement Limited.

 

Mr. P.S. Ranganath - Chartered Accountant in practice for more than 17 years is a partner of JBRK and Company which is a five partner firm having wide experience in management consultancy services and audits of public sector, government and private sector in areas including internal audit and special audits.

 

Mr. P.V. Subba Rao is an advocate in practice at present. He has retired as a Joint Commissioner of Commercial Taxes, Andhra Pradesh government. His association with commercial tax department has spanned for about four decades.  He does not currently hold directorships in any other company.

 

Mr. P. Ramachandra Raju is a graduate in commerce, FICWA and ACS (Inter) has 40 years rich experience in Finance, Cost and Management as well as in Company Law matters holding senior positions both in private and public sector undertakings.

 

 

 

MILESTONES ACHIEVED:

 

Year

Highlights

1999-2000

·         Commenced commercial production after take-over of management and changed the name to Anjani Portland Cement Limited.

2000-2001

·         Acquired M/s.Vennar Ceramics Limited, a gas based power generating company to cater to 60% of power requirement.

2001-2002

·         Installation of secondary crusher at the plant.

2003-2004

·         Introduction of high efficiency cyclones, burners and introduction of screw compressors in place of unit conpressors.

2004-2005

·         Calciner modification done to improve production.

2005-2006

·         Installed an additional cement mill to increase cement grinding capacity.

2006-2007

·         Installed high efficiency fans, acquired grinding unit (M/s.Pachava Cements Limited)

·          Declared Maiden Dividend.

2007-2008

·         Installation of R.A.B.H. and distribution control system.

·         Acquired Hi-Tech print Systems Ltd., a leading security printer in south India.

2009

·         Inauguration of Anjani Powder Research Centre.

2009-2010

·         The FAPCCI Excellence Award 2009-2010 for “Excellence in Corporate Social Responsibility” awarded to Anjani Portland Cement Limited.

2010

·         Inauguration of new corporate office – Anjani Cement Centre.

·         Anjani Studio –first of its kind to be launched in the industry.

·         Started production at the second plant and achieved rated capacity in July 10’.

·         Anjani Portland Cement Limited has been certified as an ISO 9001:2008 company.

·         Inauguration of BV Raju Institute of Cement Technology.

2011

·         Anjani Portland Cement awarded Commendation Certificate for IMC Ramakrishna Bajaj National Quality (RBNQ) Awards 2011.in the category of Manufacturing.

·         Launch of Mobile Concrete Solutions –NIRMAAN SANJEEVANI at West and East Godavari Districts on 25 & 26 Dec 2011.

·         Launch of Mobile Concrete Solutions –NIRMAAN SANJEEVANI at West and East Godavari Districts on 25 & 26 Dec 2011

 

 

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No 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.55.85

UK Pound

1

Rs.87.93

Euro

1

Rs.70.88

 

 

 

INFORMATION DETAILS

 

Report Prepared by :

DPTP

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--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

 

45

 

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

-

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.