MIRA INFORM REPORT

 

 

Report Date :

13.04.2013

 

IDENTIFICATION DETAILS

 

Name :

ACC LIMITED (w.e.f. 01.09.2006)

 

 

Formerly Known As :

THE ASSOCIATED CEMENT COMPANIES LIMITED

 

 

Registered Office :

Cement House, 121, Maharshi Karve Road, Mumbai – 400 020, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

01.08.1936

 

 

Com. Reg. No.:

11-002515

 

 

Capital Investment / Paid-up Capital :

Rs.1879.500 millions

 

 

CIN No.:

[Company Identification No.]

l26940mh1936plc002515

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

mumt00130e

 

 

PAN No.:

[Permanent Account No.]

aaact1507C

 

 

Legal Form :

Public Limited Liability Company. The Company's shares are listed on the Stock Exchanges.

 

 

Line of Business :

manufacturer of Cement and Concrete.

 

 

No. of Employees :

Information declined by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (70)

 

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 300000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is the oldest and largest cement company in India. It is a well established and reputed company having a good track record. There appears slight dip in profitability during the current year.

 

However, general financial position of the company appears to be strong. Performance capability is high. Liquidity seems to be good. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitment.

 

In view of experience promoters, the company can be considered 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.

 

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

LONG TERM RATING : CRISIL AAA

Rating Explanation

Having the highest degree of safety regarding timely servicing of financial obligation it carry lowest credit risk.

Date

April, 2012

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

EPF (Employee Provident Fund) DEFAULTERS’ 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.

 

INFORMATION DECLINED BY

           

Name :

Mr. Rajesh Kanode

Designation :

General Manager (Finance)

Contact No.:

91-22-33024321

Date :

08.04.2013

 

 

LOCATIONS

 

Registered Office/ Corporate Office :

Cement House, 121, Maharshi Karve Road, Mumbai – 400 020, Maharashtra, India

Tel. No.:

91-22-33024321

Fax No.:

91-22-66317440

E-Mail :

jer.dhondy@acclimited.com

 

Feedback and Assistance: gulnaz.nensey@acclimited.com

 

Enquiries                        

Cement                        

For requirements in Eastern India : kurian.chandapillai@acclimited.com

Northern India: Joydeep.mukherjee@acclimited.com

Western India: rajivkumar.bimalchand@acclimited.com

Southern India: panchanathan.iyer@acclimited.com

 

Ready Mixed Concrete 

For requirements in Delhi: anil.kulkarni@accconcrete.com

Kolkata : sanjay.roy@accconcrete.com

Bangalore:prashant.pawar@accconcrete.com

Hyderabad: navneet.ghai@accconcrete.com

Mumbai: vishal.tandon@accconcrete.com

Chennai: ramchander.rao@accconcrete.com

 

Vendor Queries: mahendrakumar.swami@acclimited.com

 

Shareholder queries: sujata.chitre@acclimited.com
Krishnan.chidambaram@acclimited.com

 

Investor Grievances: ACC-InvestorSupport@acclimited.com

 

Waste Management: Ulhas.parlikar@acclimited.com

 

Media Queries: nand.kumar@acclimited.com

Website :

http://www.acclimited.com

 

 

CEMENT PLANTS :

 

Factory 1 :

Cement Nagar, PO Bardol, District Bargarh - 768 038, Orissa, India

Tel. No.:

91-6646-246189/ 90

Fax No.:

91-6646-246430

 

 

Factory 2 :

P.O. Jhinkpani, District (West) Singhbhum - 833 215, Jharkhand, India

Tel. No.:

91-6589-235300/ 391

Fax No.:

91-6589-235250

 

 

Factory 3 :

P.O. Cementnagar, District Chandrapur - 442 502, Maharashtra, India

Tel. No.:

91-7172-285026

Fax No.:

91-7172-285165

 

 

Factory 4 :

Madhukunda, P.O. Sunuri, District Purulia - 723 121, West Bengal, India 

Tel. No.:

91-3251-272224

Fax No.:

91-3251-272202

 

 

Factory 5 :

P.O. Barmana, District Bilaspur - 174 013, Himachal Pradesh, India

Tel. No.:

91-1978-244069/ 31

Fax No.:

91-1978-244067

 

 

Factory 6 :

P.O. Jamul Cement Works, District Durg - 490 024, Chhattisgarh, India

Tel. No.:

91-788-2285081-83

Fax No.:

91-788-2282585

 

 

Factory 7 :

Kurugodu Road, P.O. Kudithini, District: Bellary - 583 115, Karnataka, India

 

 

Factory 8 :

P.O. Kymore, District Katni - 483 880, Madhya Pradesh, India

Tel. No.:

91-7626-272301/ 865

Fax No.:

91-7626-272303

 

 

Factory 9 :

P.O. Lakheri, District Bundi - 323 603, Rajasthan, India

Tel. No.:

91-7438-261642

Fax No.:

91-7438-261504

 

 

Factory 10 :

P.O. Madukkarai, District Coimbatore - 641 105, Tamilnadu, India

Tel. No.:

91-422-2622282

Fax No.:

91-422-2622282

 

 

Factory 11 :

P.O. ACC Colony, District Dhanbad - 828 124, Jharkhand, India

Tel. No.:

91-326-2245120/ 054

Fax No.:

91-326-2245515

 

 

Factory 12 :

P.O. Wadi, District Gulbarga - 585 225, Karnataka, India

Tel. No.:

91-8476-202239

Fax No.:

91-8476-202190

 

 

Factory 13 :

Madugiri Road, Thondebhavi, Gauribidannur Taluk, District Chikballapur 561 213, Karnataka, India

Tel. No.:

91-8155-288802

Fax No.:

91-8155-288682

 

 

Techport :

ACC Thane Complex, L.B.S. Marg, Thane (West) - 400 604, Maharashtra, India

Tel. No.:

91-22-33028000, 39248200

 

 

Regional Office :

Located at:

 

v      Eastern Region (Kolkata)

v      Northern Region (New Delhi)

v      South and Western Region (Pune)

 

 

Training Centres :

Located at:

 

v      ACC ACL Leadership Academy, Thane

v      ACC Cement Technology Institute, Jamul

v      Sumant Moolgaokar Technical Institute, Kymore

v      ACC School for Technical Skill Development, Wadi

 

 

Sales Offices :

Located at:

 

v      Asansol

v      Bangalore

v      Chennai

v      Bhopal

v      Bhubaneswar

v      Chandigarh

v      Cochin

v      Dehradun

v      Hubli

v      Mumbai

v      Nagpur

v      Pune

v      Kanpur

v      Lucknow

v      New Delhi

v      Kolkata

v      Patna

v      Raipur

v      Ranchi

v      Secunderabad

 

 

DIRECTORS

 

As on 31.12.2012

 

Name :

Mr. N.S. Sekhsaria

Designation :

Chairman

Date of Birth/ Age :

21.09.1949

Qualification :

Bachelor of Chemical Engineering from Bombay University

Date of Appointment :

27.12.1999

 

 

Name :

Mr. Paul Hugentobler

Designation :

Deputy Chairman

Date of Birth/ Age :

14.02.1949

Qualification :

Degree in Civil Engineering from ETH, Zurich; Degree in Economic Science from University of St. Gallen

Date of Appointment :

06.05.2005

 

 

Name :

Mr. Kuldip Kaura

Designation :

Chief Executive Officer and Managing Director

Qualification :

BE

Date of Appointment :

05.08.2010

 

 

Name :

Mr. S.M. Palia

Designation :

Director

Date of Birth/ Age :

25.04.1938

Qualification :

B.Com.; LL.B; CAIIB; CIIB (London)

Date of Appointment :

25.01.2002

 

 

Name :

Mr. Naresh Chandra

Designation :

Director

 

 

Name :

Mr. Bernard Fontana

Designation :

Director

 

 

Name :

Mr. M.L. Narula

Designation :

Director

Date of Birth/ Age :

25.10.1940

Qualification :

B.Sc.; Engineering (Electrical) from Punjab University; Fellow, Institute of Engineers

Date of Appointment :

01.04.2007

 

 

Name :

Mr. R.A. Shah

Designation :

Director

 

 

Name :

Mr. Shailesh Haribhakti

Designation :

Director

Date of Birth/ Age :

12.03.1956

Qualification :

FCA; FICWA

Date of Appointment :

17.02.2006

 

 

Name :

Mr. Aidan Lynam

Designation :

Director

 

 

Name :

Mr. Sushil Kumar Roongta

Designation :

Director

 

 

Name :

Mr. Ashwin Dani

Designation :

Director

Date of Birth/ Age :

24.10.1942

Qualification :

BSc (Honours); B.Sc (Tech) (Pigments Paints and Varnishes); Masters Degree in Polymer Science (USA); Diploma in Colour Science (USA)

Date of Appointment :

15.12.2011

 

 

KEY EXECUTIVES

 

Name :

Mr. Burjor Dorab Nariman

Designation :

Company Secretary and Head Compliance

 

 

Name :

Mr. Rajesh Kanode

Designation :

General Manager (Finance)

 

 

Audit Committee :

Mr. Shailesh Haribhakti, Chairman

Mr. S.M. Palia

Mr. Naresh Chandra

Mr. Paul Hugentobler

Mr. Sushil Kumar Roongta

 

 

Shareholders’/ Investors’ Grievance Committee :

Mr. Paul Hugentobler, Chairman

Mr. M.L. Narula

Mr. Kuldip Kaura

 

 

Compensation Committee :

Mr. N.S. Sekhsaria, Chairman

Mr. Paul Hugentobler

Mr. Shailesh Haribhakti

 

 

Compliance Committee :

 

Mr. R A Shah, Chairman

Mr. Naresh Chandra

Mr. Shailesh Haribhakti

Mr. Paul Hugentobler

Mr. Kuldip Kaura

 

 

CAPEX Committee :

 

Mr. Paul Hugentobler, Chairman

Mr. S.M. Palia

Mr. M.L. Narula

Mr. Aidan Lynam

Mr. Sushil Kumar Roongta

Mr. Kuldip Kaura

 

 

Managing Committee :

 

Mr. Kuldip Kaura, Chairman

Mr. Sunil Nayak

Mr. J. Datta Gupta

Mr. Rajiv Prasad

Mr. Vivek Chawla

Mr. Shakti Arora

Mr. P N Iyer

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2013

 

Category of Shareholders

 

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Bodies Corporate

93888120

50.01

Sub Total

93888120

50.01

(2) Foreign

 

 

Bodies Corporate

541000

0.29

Sub Total

541000

0.29

Total shareholding of Promoter and Promoter Group (A)

94429120

50.30

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

3241486

1.73

Financial Institutions / Banks

16366795

8.72

Central Government / State Government(s)

287815

0.15

Foreign Institutional Investors

37456367

19.95

Sub Total

57352463

30.55

(2) Non-Institutions

 

 

Bodies Corporate

9270018

4.94

Individuals

 

 

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

21712918

11.57

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

3421606

1.82

         Qualified Foreign Investors

50

0.00

Any Others (Specify)

1559181

0.83

Foreign Nationals

386995

0.21

NRIs/OCBs

798895

0.43

Clearing Members

163505

0.09

Trusts

206991

0.11

Partnership Firms

2795

0.00

Sub Total

35963773

19.16

Total Public shareholding (B)

93316236

49.70

Total (A)+(B)

187745356

100.00

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

0

0.00

(1) Promoter and Promoter Group

0

0.00

(2) Public

0

0.00

Sub Total

0

0.00

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

187745356

0.00

 

Shareholding belonging to the category "Promoter and Promoter Group"

 

 

 

Details of Shares held

Sl. No.

Name of the Shareholder

No. of Shares held

As a % of grand total (A)+(B)+(C)

1

Holcim (India) Private Limited

9,38,88,120

50.01

2

Holderind Investments Limited

5,41,000

0.29

 

Total

9,44,29,120

50.30

 

Shareholding belonging to the category "Public" and holding more than 1% of the Total No. of Shares

 

Sl. No.

Name of the Shareholder

No. of Shares held

Shares as % of Total No. of Shares

1

Life Insurance Corporation of India

14042440

7.48

2

JP Morgan Funds - Emerging Markets Equity Fund

2977958

1.59

3

ICICI Prudential Life Insurance Company Ltd

2677516

1.43

4

Flagship Indian Investment Company (Mauritius) Ltd

2708176

1.44

5

JF India Fund

1925852

1.03

6

Aberdeen Global Indian Equity Fund Mauritius Ltd

2255051

1.20

 

Total

26586993

14.16

 

Shareholding belonging to the category "Public" and holding more than 5% of the Total No. of Shares

 

Sl. No.

Name of the Shareholder

No. of Shares held

Shares as % of Total No. of Shares

 

 

 

 

1

Life Insurance Corporation of India

14042440

7.48

 

Total

14042440

7.48

 

 

BUSINESS DETAILS

 

Line of Business :

manufacturer of Cement and Concrete.

 

 

Products :

Item Code No. (ITC Code)

252300

Product Description

Cement

 

PRODUCTION STATUS (AS ON 31.12.2011)

 

Particulars

Unit

Installed/Rated Capacity

Actual Production

Cement

Lakh Tonnes

286.83

234.60

 

Licensed Capacity per annum not indicated due to the abolition of Industrial Licences as per Notification No.477 (E) dated July 25, 1991 issued under The Industries (Development and Regulation) Act, 1951.

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by the management

 

 

Bankers :

v      State Bank of India

v      Citibank, N.A.

v      The Hongkong and Shanghai Banking Corporation Limited

v      Banking Corporation Limited

v      HDFC Bank Limited

v      ICICI Bank Limited

 

 

Facilities :

Secured Loans

31.12.2012

Rs. In Millions

31.12.2011

Rs. In Millions

(a) NIL (Previous Year 2,000) 11.30% Non-Convertible Debentures of Rs.1.000 million each redeemable at par on December 09, 2013

0.000

2000.000

(b) 820 (Previous Year 3,000) 8.45% Non-Convertible Debentures of Rs.1.000 million each redeemable at par on October 07, 2014

820.000

3000.000

Total

820.000

5000.000

 

i) 8.45% Debentures are redeemable at par at the end of five years from the date of allotment, viz 07, October 2009. These debentures are secured by a charge on all movable and immovable assets under the Debenture Trust Deed. During the year, the Company has bought back 2,180 debentures of Rs.2180.000 Millions, which have been extinguished during the year / subsequent to the year end.

 

ii) 11.30% Debentures are redeemable at par at the end of five years from the date of allotment, viz 09, December 2008. These debentures are secured by a charge on all movable and immovable assets under the Debenture Trust Deed. During the year, the Company has bought back 1,250 debentures of Rs.1250.000 Millions, which have been extinguished during the year.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

S.R. Batliboi and Associates

Chartered Accountants

Address :

14th Floor, The Ruby, 29, Senapati Bapat Marg, Dadar (West), Mumbai - 400028, Maharashtra, India

Tel No.:

91-22-61920000

Fax No.:

91-22-61921000

 

 

Cost Auditor :

N.I. Mehta and Company

Chartered Accountants

 

 

Ultimate Holding Company :

v      Holcim Limited

 

 

Holding Company of Holcim (India) Private Limited :

v      Holderind Investments Limited

 

 

Holding Company :

v      Holcim (India) Private Limited*

 

 

Subsidiary Companies :

v      Bulk Cement Corporation (India) Limited

v      ACC Mineral Resources Limited

v      Lucky Minmat Limited (ACC Concrete Limited (Amalgamated with the Company w.e.f. January 01, 2012)

v      National Limestone Company Private Limited

v      Encore Cement and Additives Private Limited (Amalgamated with the Company w.e.f. January 01, 2011)

v      Singhania Minerals Private Limited (w.e.f. August 07, 2012)

 

v       

Associate Companies :

v      Alcon Cement Company Private Limited

v      Asian Concretes and Cements Private Limited

v      Aakaash Manufacturing Company Private Limited

 

 

Fellow Subsidiaries :

v      Ambuja Cements Limited

v      Holcim Group Support Limited

v      Holcim (Singapore) Pte Limited

v      Holcim Trading FZCO

v      Holcim (Lanka) Limited

v      P T Holcim Indonesia Tbk

v      Holcim Services (South Asia) Limited

v      Siam City Cement Public Company Limited

v      Holcim (Bangladesh) Limited

v      Holcim (Vietnam) Limited

v      Holcim Environment Services SA

v      Holcim (Malaysia) SDN BHD

v      Holcim (US) INC

v      Holcim Philippines

v      Holcim Services Asia Bankgok

v      Holcim Services (Asia) Limited

 

 

Entity controlled by Holcim Limited :

v      Holcim Foundation

 

 

CAPITAL STRUCTURE

 

As on 31.12.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

225000000

Equity Shares

Rs.10/- each

Rs.2250.000 millions

100000000

Preference Shares

Rs.10/- each 

Rs.1000.000 millions

 

Total

 

Rs.3250.000 millions

 

Issued Capital :

No. of Shares

Type

Value

Amount

188793243

Equity Shares

Rs.10/- each

Rs.1887.900 millions

 

 

 

 

 

 

Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

187745356

Equity Shares

Rs.10/- each

Rs.1877.500 millions

 

Add: 384060 Equity Shares of Rs.10 each Forfeited - Amount Paid

 

Rs.2.000 millions

 

Total

 

Rs.1879.500 millions

 

 

a) Reconciliation of number of equity shares outstanding

 

Particulars

31.03.2012

 

No. of shares

Rs. In Millions

Equity Shares at the beginning of the year

18,77,45,356

1877.500

Equity Shares at the end of the year

18,77,45,356

1877.500

 

 

 

 

b) Terms / rights attached to equity shares

 

The company has only one class of equity shares having par value of ` 10 per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend.

 

c) Equity shares held by holding company / ultimate holding and their subsidiaries

 

Particulars

Rs. In Millions

Holcim (India) Private Limited, the Holding Company

9,38,88,120 (Previous Year - 9,38,88,120) Equity shares Rs.10 each fully paid

938.900

Holderind Investments Ltd., Mauritius, Holding Company of Holcim (India) Private Limited

5,41,000 (Previous Year - 5,41,000) Equity shares Rs.10 each fully paid

5.400

 

Both these Companies are subsidiaries of Holcim Limited, Switzerland, the ultimate holding Company

 

d) The Company has issued total 1,20,938 (Previous Year - 3,04,110) Equity shares ` 10 each fully paid during the period of five years immediately preceding the reporting date on exercise of options granted under the employee stock option plan, for which, only exercise price has been recovered in cash.

 

e) Details of shareholders holding more than 5% shares in the Company

 

Particulars

31.03.2012

 

No. of shares

% of Holdings

Holcim (India) Private Limited

9,38,88,120

50.01

Life Insurance Corporation of India

1,34,97,566

7.19

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.12.2012

31.12.2011

31.12.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

1879.500

1879.500

1879.500

2] Share Application Money, pending allotment

0.000

0.000

0.000

3] Reserves & Surplus

71948.500

70043.200

62815.400

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

73828.000

71922.700

64694.900

LOAN FUNDS

 

 

 

1] Secured Loans

820.000

5000.000

5099.300

2] Unsecured Loans

30.300

60.800

138.900

TOTAL BORROWING

850.300

5060.800

5238.200

DEFERRED TAX LIABILITIES

5169.200

5183.600

3615.300

 

 

 

 

TOTAL

79847.500

82167.100

73548.400

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

58638.700

62075.300

50824.400

Capital work-in-progress (including Capital Advances)

3113.000

3656.300

15628.000

 

 

 

 

INVESTMENT

25535.500

16249.500

17026.700

DEFERRED TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
11335.500
10995.400

9149.800

 

Sundry Debtors
3034.500
1877.400

1782.800

 

Cash & Bank Balances
6783.800
16525.600

9800.300

 

Other Current Assets
1946.400
711.400

561.200

 

Loans & Advances
8874.900
7802.000

6239.400

Total Current Assets
31975.100
37911.800

27533.500

Less : CURRENT LIABILITIES & PROVISIONS
 
 

 

 

Sundry Creditors
6604.900
7102.600

16163.800

 

Other Current Liabilities
18969.000
18893.200

6341.700

 

Provisions
13840.900
11730.000

14958.700

Total Current Liabilities
39414.800
37725.800

37464.200

Net Current Assets
(7439.700)
186.000

(9930.700)

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

79847.500

82167.100

73548.400

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.12.2012

31.12.2011

31.12.2010

 

SALES

 

 

 

 

 

Income

113579.600

96602.900

79757.800

 

 

Other Income

2648.200

1919.100

984.800

 

 

TOTAL                                     (A)

116227.800

98522.000

80742.600

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of material consumed

16055.200

11403.000

61633.500

 

 

Purchase of stock-in-trade

1587.500

1697.800

 

 

 

Changes in inventories of finished goods, work-in-progress and stock-in-trade

200.200

(943.900)

 

 

 

Employee benefits expense

6166.500

5330.100

 

 

 

Power and fuel

23822.600

21833.000

 

 

 

Freight and forwarding expense

22333.600

18944.400

 

 

 

Other expenses

21458.200

19131.300

 

 

 

Exceptional item

3353.800

0.000

 

 

 

TOTAL                                     (B)

94977.600

77395.700

61633.500

 

 

 

 

 

Less

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

21250.200

21126.300

19109.100

 

 

 

 

 

Less

INTEREST EXPENSES                                      (D)

1146.500

969.100

567.800

 

 

 

 

 

 

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

20103.700

20157.200

18541.300

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

5588.800

4753.000

3926.800

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

14514.900

15404.200

14614.500

 

 

 

 

 

Less

TAX                                                                  (H)

3903.000

2151.600

3414.400

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

10611.900

13252.600

11200.100

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

38215.400

33814.100

32038.500

 

 

 

 

 

Add / (Less)

ADJUSTMENT PURSUANT TO AMALGAMATION

(2162.900)

0.000

0.000

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Interim Dividend

2065.200

2065.200

1877.500

 

 

Proposed Final Dividend

3567.200

3191.700

3848.800

 

 

Dividend Distribution Tax

913.700

852.800

951.000

 

 

Previous Year Dividend Distribution Tax

0.000

(14.900)

(9.300)

 

 

Transfer to General Reserve

1500.000

2500.000

2500.000

 

 

Transfer to Debenture Redemption Reserve

0.000

250.000

250.000

 

 

Transfer to Amortisation Reserve

0.000

6.500

6.500

 

BALANCE CARRIED TO THE B/S

38618.300

38215.400

33814.100

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Consultancy Services and Others

0.000

138.400

518.300

 

TOTAL EARNINGS

0.000

138.400

518.300

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

1030.000

1050.700

1340.900

 

 

Stores & Spare Parts

1075.000

764.500

545.000

 

 

Coal

4025.200

2001.300

2906.000

 

 

Capital Goods

510.000

213.800

294.100

 

TOTAL IMPORTS

6640.200

4030.300

5086.000

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

 

 

- Basic

56.52

70.59

59.66

 

- Diluted

56.38

70.42

59.52

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.12.2012

31.12.2011

31.12.2010

PAT / Total Income

(%)
9.13
13.45

13.87

 

 
 
 

 

Net Profit Margin

(PBT/Sales)

(%)
12.78
15.95

18.32

 

 
 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)
16.02
15.41

18.65

 

 
 
 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.20
0.21

0.23

 

 
 
 

 

Debt Equity Ratio

(Total Debt/Networth)

 
0.01
0.07

0.08

 

 
 
 

 

Current Ratio

(Current Asset/Current Liability)

 
0.81
1.00

0.73

 

 

LOCAL AGENCY FURTHER INFORMATION

 

DETAILS OF SUNDRY CREDITORS

(Rs. In Millions)

Particulars

31.12.2012

31.12.2011

31.12.2010

Trade Payables

 

 

 

Due to Micro, Small and Medium Enterprises

22.500

24.000

16163.800

Due to others

6582.400

7078.600

 

Total

6604.900

7102.600

16163.800

 

Sr. No.

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

Yes

10]

Designation of contact person

Yes

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

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

Yes

 

 

DETAILS OF UNSECURED LOANS

(Rs. In Millions)

Particulars

31.12.2012

31.12.2011

 

 

 

Deferred payment liability

16.200

32.600

Deferred sales tax loans

14.100

28.200

Total

30.300

60.800

 

Note:

 

Deferred payment liability is payable to the Industrial Development Corporation of Orissa Limited (IDCOL) in eight equal annual installments of Rs.16.200 Millions beginning from 2007 without interest or penalty.

 

Deferred sales tax loan is interest-free and payable in 12 yearly installments of Rs.14.100 Millions each beginning from 2003.

 

 

FOREWORD

 

The Indian economy experienced a slowdown in the year 2012, consequent to a deceleration in global economic growth. As a result, two important drivers of economic growth viz. infrastructure and industrial projects performed below expectations. Higher inflation and a depreciating rupee lead to a fall in domestic savings and consumption. The Company faced these challenges with a new focus to achieve cost leadership and enhance value. This was enabled by planning for all-round improvements and innovativeness in productivity and profitability, leadership development and capability enhancement of its employees. In the process, many favourable trends were established.

 

The Company closed the year by starting ground work on the next phase of the Company's expansion programme.

 

 

ECONOMIC SCENARIO AND OUTLOOK

 

The global economy experienced a slowdown especially noticed in developed economies, which had its impact on India as well. The Indian economy had to contend with high inflation in the year 2012 and increased lending rates. The tightening of the monetary policy further slowed the growth of the economy which affected all sectors including the cement industry.

 

There are signs that indicate the possibility of a revival in consumption and government spending in 2013. Coupled with expectations of a normal monsoon, this augurs well for the economy in the coming year.

 

CEMENT INDUSTRY OUTLOOK AND OPPORTUNITIES

 

In 2012, the cement industry added ~34 million tonnes of capacity taking its installed capacity to ~360 million tonnes. The first half of the calendar year witnessed high demand for cement at 10% YoY. This demand fell in the second half of the year following a slowdown in the construction sector.

 

Cement Industry is expected to gather momentum driven by a revival in the general investment climate and by reduction in interest rates which will positively impact demand from housing, infrastructure and industry segments. We, therefore expect a favourable rate of growth in cement consumption. At the same time, there is a likelihood of mounting pressure on costs mainly arising out of increases in the cost of coal, diesel, rail freight and exchange rate fluctuations.

 

Institutionalizing Excellence

 

In the beginning of 2012, the Company launched a new programme designed to deliver superior value to their customers while simultaneously seeking cost leadership through improvements in manufacturing, sales and marketing, logistics and procurement of major inputs. The programme called "Institutionalizing Excellence" is designed to further strengthen these processes so as to deliver and sustain enhanced performance levels. Built essentially around five pillars of core processes of the Organization, the overall objective of the programme is to achieve excellence in the functions comprising manufacturing, logistics, sales and marketing, people processes and certain strategic procurement projects.

 

The manufacturing excellence pillar includes efforts to reduce production cost through improvements in clinker factor, plant performance, thermal and electrical energy efficiencies. The sales and marketing teams aim to strengthen the Company's brand advantage, sustain market share and strive for top-line growth. In logistics, the plan is to achieve best-in-class performance in terms of cost-to-serve and time-to-serve. The Company has deployed emerging technologies like RFID (Radio Frequency Identification) and GPS (Global Positioning Systems) for the first time in the Indian Cement Industry, to enable easy tracking of road transport vehicles in their plants and in transit to the end-consumer. The Institutionalizing Excellence journey has already shown signs of improvement across the Company with traction in all areas covered by it.

 

EXPANSION CAPEX

 

Preliminary work on the new Jamul expansion project has commenced with ground-breaking at site and ordering out major plant equipment. Scheduled for completion in a phased manner in 2015, the project comprises a new clinkering line of 2.79 million tonnes capacity and grinding facility of 1.10 million tonnes at Jamul. In addition, it also includes the establishment of two other grinding plants in Eastern India, which will together enhance their capacity by 5 million tonnes of cement per annum. The total estimated cost of this expansion is Rs.33000.000 Millions and shall be funded through internal accruals.

 

READY MIXED CONCRETE (RMX)

 

During the year, the sales volume of RMX fell by 16%, mainly on account of a slowdown in the construction industry. Steps have been initiated to consolidate the Company's RMX business through increased volumes from its existing assets. Vigorous efforts are being made to extend the customer base and leveraging the Company's vast cement network.

 

The outlook for the construction sector in 2013 remains stable. Maximum demand for RMX is expected from Mumbai, Gurgaon and Bengaluru\ which are likely to attract larger investments in real estate and infra projects. They expect pricing to remain under pressure next year as a result of competition.

 

SUBSIDIARY COMPANIES

 

ACC Mineral Resources Limited (AMRL)

 

The wholly owned Company, AMRL, is a Special Purpose Vehicle which looks into the development of the four coal blocks allotted by the Madhya Pradesh State Mining Corporation Limited (MPSMC) through four companies incorporated jointly by MPSMC and AMRL pursuant to a joint venture agreement.

 

In January 2013, the Company received notice of de-allocation of one of the Coal Blocks from the Ministry of Coal, Government of India, on the grounds of non-receipt of forest and environmental clearances from the Ministry of Environment and Forests, in view of the block's proximity to the National Tiger Reserve at Bandhavgarh. MPSMC along with the concerned Joint Venture Company, have together filed a writ petition in the Jabalpur High Court for relief in the matter.

 

During the year, the preliminary and pre-development activities in the other three coal blocks are in progress. The Bicharpur Coal Block in Shahdol District is in an advanced stage of development. AMRL does not have any commercial activity or earnings from investments and therefore no income.

 

Bulk Cement Corporation (India) Limited (BCCI)

 

During the year, BCCI handled cement volumes of 9.20 lakh tonnes in 2012, as against 9.34 lakh tonnes in 2011. The Profit after tax for the year 2012 is Rs.17.981 Millions, as against Rs.6.835 Millions in the year 2011.

 

Singhania Minerals Private Limited

 

This Company was acquired in August 2012. Being wholly owned Company, the said acquisition will help the Company in augmenting its limestone reserves.

 

 

CONTINGENT LIABILITIES NOT PROVIDED FOR:

(Rs. In Millions)

Particulars

31.12.2012

31.12.2011

 

 

 

a) Claims not acknowledged by the Company

 

 

Sales tax

301.400

284.700

Claim by Suppliers

367.900

367.900

Labour related

234.200

200.600

Others

202.400

157.100

 

 

 

In respect of above matters, future cash outflows in respect of contingent liabilities are determinable only on receipt of judgments pending at various forums / authorities.

 

 

b) Guarantee given on behalf of subsidiary company

0.000

0.800

c) Indemnity, Guarantee/s given to Banks/Financial Institutions, Government Bodies and others

2161.900

1779.100

d) Bills discounted

132.500

0.000

 

e) The Company had filed petitions against the orders / notices of various authorities demanding Rs.1936.000 Millions (Previous Year – Rs.1697.500 Millions) towards payment of additional Royalty on Limestone based on the ratio of 1.6 tonnes of Limestone to 1 tonne of Cement produced at its factories in Madhya Pradesh and Chattisgarh and on cement produced vis a vis consumption of limestone at its factory in Tamil Nadu. The Company holds the view that the payment of royalty on limestone is correctly made based on the actual quantity of limestone extracted from the mining area.

 

In view of above demand being legally unjustifiable, the Company does not expect any liability in above matter.

 

f) The Competition Commission of India issued an Order dated June 20, 2012 imposing penalty on certain cement manufacturers, including the Company, concerning alleged contravention of the provisions of the Competition Act, 2002, and imposed a penalty of Rs.11475.900 Millions on the Company. The Company has filed an appeal against the Order before the Competition Appellate Tribunal, which is pending for disposal. Based on the advice of external legal counsel, the Company believes it has good grounds for a successful appeal. Accordingly, no provision is considered necessary.

 

 

FIXED ASSETS:

 

Tangible Assets:

v      Freehold Land

v      Leasehold Land

v      Buildings

v      Plant and Machinery

v      Roads, Bridges and Fences

v      Railway Sidings

v      Rolling Stock

v      Furniture, Fixtures and Equipments

v      Vehicles

Intangible Assets:

v      Computer Software

v      Mining Right

 

 

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 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.54.44

UK Pound

1

Rs.83.78

Euro

1

Rs.71.33

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Report Prepared by :

BSN

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

8

--RESERVES

1~10

8

--CREDIT LINES

1~10

8

--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

Yes

--AFFILIATION

YES/NO

Yes

--LISTED

YES/NO

Yes

--OTHER MERIT FACTORS

YES/NO

Yes

DEFAULTER

 

 

--RBI

YES/NO

No

--EPF

YES/NO

No

TOTAL

 

70

 

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.