MIRA INFORM REPORT

 

 

 

Report Date :

14.02.2013

 

 

IDENTIFICATION DETAILS

 

Name :

SHREE CEMENT LIMITED

 

 

Registered Office :

Bangur Nagar, P O Box 33, Beawar, Ajmer-305901, Rajasthan

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

25.10.1979

 

 

Com. Reg. No.:

17-001935

 

 

Capital Investment / Paid-up Capital :

Rs. 348.372 Millions

 

 

CIN No.:

[Company Identification No.]

L26943RJ1979PLC001935

 

 

TAN No.:

[Tax Deduction and Collection Account No.]

JDHS01295A

 

 

PAN No.:

[Permanent Account No.]

AACCS8796G

 

 

Legal Form :

A Public Limited Liability Company. The company’s shares are listed on the stock exchange.

 

 

Line of Business :

Manufacturing and Marketing of Cement

 

 

No. of Employees :

2566 (Approximately)

 

RATING and COMMENTS

 

MIRA’s Rating :

Aa  (75)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

 

 

 

 

Maximum Credit Limit :

USD 73300000

 

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well-established and reputed company having fine track. Financial position of the company appears to be sound. Fundamental are strong and healthy. Directors are reported to be experienced and respectable businessman. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered good 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, 2010

 

Country Name

Previous Rating

(01.04.2010)

Current Rating

(30.06.2010)

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 :

Bangur Nagar, P O Box 33, Beawar, Ajmer-305901, Rajasthan, India

Tel. No.:

91-1462-228101/ 06

Fax No.:

91-1462-228117/ 19

E-Mail :

sclbwr@shreecementltd.com

shreebwr@shreecementltd.com

Website :

www.shreecement.in

 

 

Corporate Office :

21, Strand Road, Kolkata-700001, West Bengal, India

Tel. No.:

91-33-22390601/ 05

Fax No.:

91-33-22434226

E-Mail :

sclcal@shreecementltd.com

 

 

Factory 1 :

Unit I and II

 Bangur Nagar, Bewar – 305901, District Ajmer, Rajasthan, India

Tel. No.:

91-1462-228101/ 06

Fax No.:

91-1462-228117/ 228119

E-Mail :

shreebwr@shreecementltd.com

 

 

Factory 2 :

Unit IV , V, VI and VII

Bangur City, Ras, Tehsil jaitaran-306107, District Pali, Rajasthan (India)

Tel. No.:

91-1462-228101-06

Fax No.:

91-1462-228117/ 228119

E-Mail :

shreebwr@shreecementltd.com

 

 

Factory 3 :

Khushkhera Cement Grinding Units

Plot No. SP 3-II, A-1, RIICO Industrial Area, Khushkhera (Bhiwandi) – 301707, District Alwar, Rajasthan, India

Tel. No.:

91-1493-250521/ 22/23/ 24

Fax No.:

91-1493-517227

 

 

Marketing Office :

Shree Ultra Cement

122-123, Hans Bhawan, 1, Bhadur Shah Zafar Marg, New Delhi-110002

Tel. No.:

91-11-23370828/ 23379218/ 23370776

Fax No.:

91-11-23370499

E-Mail:

scldel@shreecementltd.com

 

 

Marketing Office :

A-6, Yudhisther Marg, Opposite Yojana Bhawan, C Scheme, Jaipur-302005, Rajasthan, India

Tel. No.:

91-141-2223918/ 2225950

Fax No.:

91-141-2381091

E-Mail :

Sclipr_jp1@shreecementltd.com

 

 

Marketing Office :

Bangur Cement

6B, 6 Floor, Hansalaya Building, 15, Barakhamba Road, New Delhi-110001, India

Fax No.:

91-11-23702794/ 96

E-Mail :

sharmaps@bangurcement.com

 

 

Marketing Office :

91, Dulheshwar Garden, C Scheme, Jaipur-302005, Rajasthan, India

Tel. No.:

91-141-2361735/ 2361696

Fax No.:

91-141-2360891

E-Mail :

jhanwara@bangurcement.com

 

 

Marketing Office :

14 E, 14 Floor, Hansalaya Building, 15-Barakhamba Road, New Delhi-110001, India

Tel. No.:

91-11-23731085/ 61512430

Fax No.:

91-11-23731084

 

 

Marketing Office :

14-15, Indira Plaza, Hawa Sarak, Sodala, Jaipur-302001, Rajasthan, India

Tel. No.:

91-141-2222032/ 6455692

Fax No.:

91-141-2222031

 

 

DIRECTORS

 

Name :

Dr. Y. K. Alagh

Designation :

Director

Date of Birth/Age :

69 Years

Qualification :

Doctorate in Economics

Expertise in specific functional area :

Economist

Date of Appointment :

29.10.2004

Other Directorship:

Tata Chemical Limited

 

 

Name :

Mr. R L Gaggar

Designation :

Director

Date of Birth/Age :

76 Years

Qualification :

B.A (Hons) LLB

Expertise in specific functional area :

Solicitor and Advocate

Date of Appointment :

25.01.1995

Other Directorship:

·         Somany Ceramics Limited

·         Sarda Plywood Industries Limited

·         TIL Limited

·         Peria Karmalai Tea and Produce Company Limited

·         Paharpur Cooling Towers Limited

·         International Combustion India Limited

·         Subhash Projects and Marketing Limited

·         Machino Plastics Limited

·         Sumedha Fiscal Services Limited

·         Financial and Management Services Limited

·         Machino Bassel India Limited

·         Eastern Silk Industries Limited

 

 

Name :

Mr. M K Singhi

Designation :

Executive Director

Date of Birth/Age :

56 Years

Qualification :

B.Sc., L.L.B and F.C.A

Expertise in specific functional area :

Company Executive

Date of Appointment :

26.04.2002

Other Directorship:

Shree Cement Marketing Limited

 

 

Name :

Mr. Bengur H. M

Designation :

Managing Director

Date of Birth/Age :

56 Years

Qualification :

B.E (Chemical)

Experience :

30 Years

Date of Appointment :

01.01.1992

Other Directorship:

Shree Digvijay Cement Company Limited

 

 

Name :

Mr. B.G. Bangur

Designation :

Executive Chairman

Date of Birth/Age :

74 Years

Qualification :

B.Com

Experience :

55 Years

Date of Appointment :

13.08.1992

Other Directorship:

Hasting Mill A Division of Shree Digvijay Cement Company Limited

 

 

Name :

Mr. O P Setia

Designation :

Director

 

 

Name :

Mr. Shrikant Somany

Designation :

Director

 

 

Name :

Dr. Abid Hussain

Designation :

Director

 

 

Name :

Mr. A Ghosh

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Prashant Bangur

Designation :

Senior Executive

Date of Birth/Age :

28 Years

Qualification :

B.Sc.and MBA

Experience :

4 Years

Date of Appointment :

22.06.2004

 

 

Name :

Mr. Ashok Bhandari

Designation :

Chief Finance Officer

Date of Birth/Age :

55 Years

Qualification :

B.Sc, (Hons) FCA

Experience :

30 Years

Date of Appointment :

01.04.1990

Other Directorship:

PT Indo Rama Synthetics

 

 

Name :

Mr. Payal Diwarkar

Designation :

Senior Vice President (Marketing)

Date of Birth/Age :

50 Years

Qualification :

B.Tech, PGDM

Experience :

26 Years

Date of Appointment :

23.10.2001

Other Directorship:

Gujarat Ambuja Cements Limited

 

 

Name :

Mr. Vinay Wadhawa

Designation :

Senior Vice President (marketing)

Date of Birth/Age :

52 Years

Qualification :

B.A (Hons.), M.B.A (Marketing)

Experience :

27 Years

Date of Appointment :

01.12.2006

Other Directorship:

Binani Cement Limited

 

 

Name :

Mr. H C Kabra

Designation :

Senior Vice President (Power Plant)

Date of Birth/Age :

62 Years

Qualification :

B.E. (Mechanical)

Experience :

40 Years

Date of Appointment :

30.08.2001

Other Directorship:

Century Textile and Industries Limited

 

 

Name :

Mr. S M Khira

Designation :

Advisor (Technical)

Date of Birth/Age :

62 Years

Qualification :

Diploma (Mechanical)

Experience :

41 Years

Date of Appointment :

31.01.1997

Other Directorship:

Tororo Cement Industry Limited

 

 

Name :

Mr. P K Tripathy

Designation :

Vice President (Technical)

Date of Birth/Age :

50 Years

Qualification :

B.Sc. (Engineer)

Experience :

25 Years

Date of Appointment :

06.04.1997

Other Directorship:

Aditya Cement

 

 

Name :

Mr. M M Sharma

Designation :

Vice President (Projects)

Date of Birth/Age :

58 Years

Qualification :

B.Sc. (Chemical Engineer)

Experience :

35 Years

Date of Appointment :

15.06.1992

Other Directorship:

U.P State Cement Corporation Limited

 

 

Name :

Mr. P N Chhangani

Designation :

Vice President (Technical)

Date of Birth/Age :

48 Years

Qualification :

B.Sc. (Chemical Engineer)

Experience :

25 Years

Date of Appointment :

03.04.2006

Other Directorship:

Holtec Consulting Private Limited

 

 

Name :

Mr. C R Biyani

Designation :

Vice President (Business Development)

Date of Birth/Age :

57 Years

Qualification :

B.E. Hons (Electronics)

Experience :

36 Years

Date of Appointment :

24.08.2002

Other Directorship:

BFL Infotech Limited

 

 

Name :

Mr. A B Reddy

Designation :

Senior Vice President

Date of Birth/Age :

59 Years

Qualification :

B.Sc. (Agriculture) MBA

Experience :

35 Years

Date of Appointment :

25.07.2007

Other Directorship:

Seshsayee Papers and Board Limited

 

 

Name :

Mr. Diwan Himanshu

Designation :

Assistant Vice President (marketing)

 

 

Name :

Mr. Gopal Daga

Designation :

Vice President (Project)

 

 

Name :

Mr. K.C. Gandhi

Designation :

Vice President (Materials)

 

 

Name :

Mr. Sanjay Mehta

Designation :

Vice President (Commercial)

 

 

Name :

Mr. Ramakant Sharma

Designation :

Vice President (P.R.)

 

 

Name :

Mr. P.C. Jhawar

Designation :

Jt. Vice President (P and A)

 

 

Name :

Mr. S.C. Suthar

Designation :

Jt. Vice President (Mines

 

 

Name :

Mr. A.K. Singh

Designation :

Jt. Vice President (E and I)

 

 

Name :

Mr. C.S. Sharma

Designation :

Jt. Vice President (Project)

 

 

Name :

Mr. Arvind Khicha

Designation :

Jt. Vice President (Commercial)

 

 

Name :

Mr. N.C. Jain

Designation :

Asst. Vice President (Finance)

 

 

Name :

Mr. S.K. Soni

Designation :

Asst. Vice President (Sales Accounts)

 

 

Name :

Mr. R.K. Agarwal

Designation :

Asst. Vice President (Mechanical)

 

 

Name :

Mr. R.K. Manawat

Designation :

Asst. Vice President (Process)

 

 

Name :

Mr. G.L. Nandwana

Designation :

Asst. Vice President (Mines)

 

 

Name :

Mr. Rakesh Bhargava

Designation :

Asst. Vice President (Environment)

 

 

Name :

Mr. Nitin Mukul

Designation :

Asst. Vice President (Packing Plant)

 

 

Name :

Mr. M.M. Rathi

Designation :

Asst. Vice President (Power Plant)

 

 

Name :

Mr. Gajraj Jain

Designation :

Asst. Vice President (Power Project)

 

 

Name :

Mr. S.L. Bhansali

Designation :

Asst. Vice President (Legal)

 

 

Name :

Mr. Nirip Bajwa

Designation :

Asst. Vice President (Marketing)

 

 

Name :

Mr. Himanshu Dewan

Designation :

Asst. Vice President (Marketing)

 

 

Name :

Mr. R.C. Bohra

Designation :

Asst. Vice President (P and A)

 

 

Name :

Mr. S.R. Singhvi

Designation :

Asst. Vice President (HRD)

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2011

 

Names of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

1,071,834

3.08

Bodies Corporate

21,495,963

61.70

Sub Total

22,567,797

64.78

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

22,567,797

64.78

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

2,043,133

5.86

Financial Institutions / Banks

11,800

0.03

Insurance Companies

82,863

0.24

Foreign Institutional Investors

2,059,669

5.91

Sub Total

4,197,465

12.05

(2) Non-Institutions

 

 

Bodies Corporate

2,878,416

8.26

Individuals

 

 

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

1,239,189

3.56

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

130,903

0.38

Any Others (Specify)

3,823,455

10.98

Non Resident Indians

181,949

0.52

Overseas Corporate Bodies

3,500

0.01

Foreign Corporate Bodies

3,600,000

10.33

Directors & their Relatives & Friends

4,466

0.01

Clearing Members

30,096

0.09

Trusts

3,444

0.01

Sub Total

8,071,963

23.17

Total Public shareholding (B)

12,269,428

35.22

Total (A)+(B)

34,837,225

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)

34,837,225

-

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing and Marketing of Cement

 

 

Products :

Generic name of principle product of the company

Product Description

Item Code (ITC Code No.)

Cement

2523.29

 

 

GENERAL INFORMATION

 

No. of Employees :

2566 (Approximately)

 

 

Bankers :

·         State Bank of Bikaner and Jaipur

·         State Bank of India

·         ICICI Bank Limited

·         IDBI Bank Limited

·         Axis Bank Limited

·         DBS Bank

·         Standard Chartered Bank

·         HSBC

 

 

Facilities :

Secured Loan

31.03.2010

Rs. In Millions

31.03.2009

Rs. In Millions

Term Loans from Banks

13157.037

10571.694

Secured Redeemable Non Convertible Debentures

3000.000

0.000

Working Capital Facilities from bank

1728.288

1633.379

Total

17885.325

12205.073

Note :

 

  1. All Term loans from Financial Institutions/ Banks are secured by joint equitable mortgage on all the immovable assets ranking pari passu with the Debenture holders and are also secured by hypothecation of all the movable assets (save and except book debts) of the Company both present and future subject to prior charge(s) created and/or to be created in favour of the company’s bankers on inventories of stock-intrade, stores and spares, book debts and other current assets of the Company for working capital facilities. The above charge(s) rank pari passu inter-se among these Lenders.

 

  1. 3000-8.10% Non Convertible Debentures of Rs. 1.000 Million each aggregating to Rs. 3000.000 Millions (Previous Year Rs. Nil) redeemable at par on 23.11.2012 are secured by joint equitable mortgage over all the immovable assets and by way of hypothecation of all the movable assets (save and except book debts) of the Company both present and future subject to prior charge(s) created and/or to be created in favour of the Company’s bankers on inventories of stock-in-trade, stores and spares, book debts and other current assets of the Company for Working Capital facilities. The charges rank pari passu with the charge created / to be created in favour of the first charge holders for their respective loans. The above Debentures are also secured by a legal mortgage over immovable property of the Company situated at Jamnagar ( Gujarat).

 

  1. Working Capital facilities from banks are secured by hypothecation of inventories of stock-in-trade, stores and spares, book debts and other current assets of the Company on first charge basis and on whole of movable fixed assets of the company on second charge basis. These facilities are also secured by joint equitable mortgage on all the immovable assets of the Company on second charge basis.

 

UNSECURED LOAN

31.03.2010

Rs. In Millions

31.03.2009

Rs. In Millions

Security Deposits

989.925

618.492

Deferred Sales Tax

637.968

637.968

From Banks

1549.159

1500.000

Total

3177.052

2756.460

 

 

Banking Relations :

---

 

 

Auditors :

 

Name :

B. R Maheswari and Company

Chartered Accountant

Address :

New Delhi, India

 

 

Cost Auditor:

 

Name :

K G Goyal and Company

Chartered Accountant

Address :

Jaipur, India

 

 

Internal Auditors:

 

Name :

P K Ajemera and Company

Chartered Accountant

Address :

Ahmedabad, Gujarat, India

 

 

Associates/Subsidiaries :
  • The Kamla Company Limited
  • Ramgopal Holding Private Limited
  • Aqua Infra Project Limited
  • Shri Venkatesh Ayurvedic Aushadhalaya

 

 

CAPITAL STRUCTURE

 

As on 31.03.2009

 

Authorised Capital :

No. of Shares

Type

Value

Amount

60000000

Equity Shares

Rs. 10/- each

Rs. 600.000 Millions

1500000

Cumulative Preference Shares

Rs. 100/- each

Rs. 150.000 Millions

 

Total

 

Rs. 750.000 Millions

 

Issued, Subscribed and Paid-up Capital :

No. of Shares

Type

Value

Amount

34837225

Equity Shares

Rs. 10/- each

Rs. 348.372 Millions

 

 

 

 

 

Notes:

 

Out of above Equity Shares:

 

240021 Equity Shares of Rs. 10 each fully paid-up were issued for consideration other than cash in pursuance of Scheme of Amalgamation

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2010

31.03.2009

31.03.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

348.372

348.372

348.372

2] Share Application Money

0.000

0.000

0.000

3] Reserves and Surplus

17984.025

11751.797

6379.681

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

18332.397

12100.169

6728.053

LOAN FUNDS

 

 

 

1] Secured Loans

17885.325

12205.073

11670.732

2] Unsecured Loans

3177.052

2756.460

1636.250

TOTAL BORROWING

21062.377

14961.533

13306.982

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

39394.774

27061.702

20035.035

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

7519.538

6268.557

7599.586

Capital work-in-progress

9674.159

4788.898

179.599

 

 

 

 

INVESTMENT

15922.404

8448.347

5910.000

DEFERREX TAX ASSETS

124.038

103.898

184.610

 

 

 

 

CURRENT ASSETS, LOANS and ADVANCES

 

 

 

 

Inventories
3581.330
1544.584
1765.747

 

Sundry Debtors
824.179
583.173
493.868

 

Cash and Bank Balances
4163.742
4722.605
4674.343

 

Other Current Assets
112.784
75.520
0.000

 

Loans and Advances
7139.703
7367.881
4026.301

Total Current Assets
15821.738
14293.763
10960.259

Less : CURRENT LIABILITIES and PROVISIONS
 
 

 

Sundry Creditors
1714.675
1115.815
 

 

Other Current Liabilities
2953.778
1840.473
2361.763

 

Provisions
4998.650
3885.473
2437.256

Total Current Liabilities
9667.103
6841.761
4799.019

Net Current Assets
6154.635
7452.002
6161.240

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

39394.774

27061.702

20035.035

 

 

PROFIT and LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

36321.230

27106.309

20658.680

 

 

Other Income

758.379

391.491

732.666

 

 

TOTAL                                     (A)

37079.609

27497.800

21391.346

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Manufacturing Expenses

13123.403

11424.630

7628.235

 

 

Captive consumption of Cement

(101.961)

(43.893)

0.000

 

 

Administrative Expenses

494.931

397.639

352.938

 

 

Purchases made for re-sale

91.842

65.247

61.856

 

 

Increase/(Decrease) in Finished Goods

(196.558)

96.274

90.318

 

 

Payment to and Provision for Employees

1586.119

1038.743

736.043

 

 

Freight and Selling Expenses

6298.314

4592.770

3165.193

 

 

Exceptional Items

634.285

309.305

388.846

 

 

TOTAL                                     (B)

21930.375

17880.715

12423.429

 

 

 

 

 

Less

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

15149.234

9617.085

8967.917

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

765.807

334.111

497.239

 

 

 

 

 

 

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

14383.427

9282.974

8470.678

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

5704.298

2053.870

4787.586

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

8679.129

7229.104

3683.092

 

 

 

 

 

Less

TAX                                                                  (I)

1918.126

1449.410

1079.372

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

6761.003

5779.694

2603.720

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

8079.318

3507.202

NA

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transferred to Debenture Redemption Reserve

750.000

0.000

NA

 

 

Transfer to General Reserve

2200.000

800.000

NA

 

 

Interim Dividend on Equity Shares

174.186

174.186

NA

 

 

Corporate Dividend Tax on Interim Dividend

29.603

29.603

NA

 

 

Proposed Final Dividend on Equity Shares

278.698

174.186

NA

 

 

Corporate Dividend Tax on Final Dividend

46.288

29.603

NA

 

BALANCE CARRIED TO THE B/S

11361.546

8079.318

NA

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

89.601

184.908

170.773

 

 

Others

24.375

0.000

0.000

 

TOTAL EARNINGS

113.976

184.908

170.773

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

40.576

0.000

0.000

 

 

Fuel

2400.161

253.262

0.000

 

 

Stores and Spares

107.362

168.990

160.318

 

 

Capital Goods

1316.777

224.016

307.217

 

TOTAL IMPORTS

3864.876

646.268

467.535

 

 

 

 

 

 

Earnings Per Share (Rs.)

194.07

165.91

74.74

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2010

30.09.2010

31.12.2010

 Type

1st Quarter

2nd Quarter

 3rd Quarter

Net Sales

9445.780

7167.150

7803.950

Total Expenditure

6550.450

5749.050

6220.670

PBIDT (Excl OI)

2895.330

1418.100

1583.280

Other Income

286.360

437.580

310.820

Operating Profit

3181.690

1855.680

1894.100

Interest

420.170

310.760

503.550

Exceptional Items

(8.540)

(74.630)

(59.000)

PBDT

2752.980

1470.280

1331.550

Depreciation

1508.690

1285.310

1313.63

Profit Before Tax

1244.280

184.970

17.920

Tax

184.870

79.590

(256.990)

Provisions and contingencies

0.000

0.000

0.000

Profit After Tax

1059.410

105.380

274.920

Extraordinary Items

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

Net Profit

1059.410

105.380

274.920

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
18.23
21.02
12.17

 

 
 
 
 

Net Profit Margin

(PBT/Sales)

(%)
23.89
26.67
17.83

 

 
 
 
 

Return on Total Assets

(PBT/Total Assets}

(%)
37.18
35.16
19.84

 

 
 
 
 

Return on Investment (ROI)

(PBT/Networth)

 
0.47
0.60
0.55

 

 
 
 
 

Debt Equity Ratio

(Total Liability/Networth)

 
1.68
1.80
2.69

 

 
 
 
 

Current Ratio

(Current Asset/Current Liability)

 
1.64
2.09
2.28

 

 

LOCAL AGENCY FURTHER INFORMATION

 

History:

 

Subject is one of India's premier cement makers and the largest in North India. The company is an energy conscious and environment friendly business organization. They have three brands under their portfolio, namely Shree Ultra Jung Rodhak Cement, Bangur Cement and Rockstrong Cement. Their manufacturing units are located at Beawar, and Ras in Rajasthan. They are also having the grinding units in Khushkhera in Rajasthan. The company is headquartered in Kolkata, India. Subject was incorporated in the year 1979. The company was promoted by Calcutta-based industrialists P D Bangur and B G Bangur. The company is one of the largest cement producers in Rajasthan (Beawar) and is the largest single location manufacturer in Northern India. During the year 1994-95, the company undertook new activities in the field of leasing and hire purchase. The company made a tie up with Christian Pfeiffer and Company, Germany, for installing a horizontal impact crusher to pre-crush clinker before using it in the cement mill for upgrading cement output and save energy. Also, they made a tie up with IKN, Germany, for incorporating their KIDS system in the clinker cooler. In the year 1997, the company commissioned their second plant with the capacity of 1.24 million tonnes, raising total capacity to 2.0 MTPA. In October 1997, The Raj Cement commenced their production. During the year 2001-02 the company exercised to commission a captive 36 MW thermal power project at a cost of Rs.1200.000 Millions. In September 2001, they signed an EPC contract with Thermax Limited and commenced the civil work in October 2001. During the year 2003-04, the company installed a 36 MW captive power plant, which translated into a complete self-dependency and significant savings. During the year 2005-06, the company commissioned a Greenfield plant of 1.5 million tonnes per annum (MTPA) capacity at Ras. In August 2005, they commissioned 6 MW captive thermal power plant at their cement manufacturing facility in Rajasthan. During the year 2006-07, the company expanded their production capacity at Bangur city from 1.50 MTPA to 3.00 MTPA by commissioning their unit-IV on March 26, 2007. Also, the company commissioned one unit of captive power plant of 18 MW capacity at Bangur city in order to meet the power requirement of the expanded capacity. In April 2007, they launched their third premium cement brand in the market called Tuff Cemento 3556. During the year 2007-08, the company completed two clun clinkerization units namely, unit V and VI at Bangur city and two grinding units at Khushkhera in Alwar, Rajasthan. Thus, the company attained a total capacity of 6.83 MTPA on ordinary portland cement (OPC) basis. Also, they commissioned the two captive power plants at Bangur City in order to meet the power requirement of these expanded capacities. During the year 2008-09, the company completed their 1 MTPA Clinkerisation Unit (unit-VII) at Bangur city and started their trial production on March 24, 2009. In September 2008, they increased the thermal power generation capacity by commissioning 18 MW turbine generator (TG-VI) at Bangur city. The company is in the process of the expanding the capacity in their Clinker Grinding Unit at Suratgarh in Rajasthan and Roorkee in Uttrakhand. The works on these projects is running as per schedule and are expected to be commissioned during the financial year 2009-10. Also, the company is in the process of setting up 100 MW capacity (50MWx2) power plants at Bangur city. The first 50 MW power plant is expected to be commissioned by fourth quarter of the financial year 2009-10 while second 50 MW power plant is expected to be commissioned by first half of 2010-11. The company is in the process of setting up the 43 MW Green Power Projects (Waste Heat Recovery Projects) at Bangur Nagar, Beawar and Bangur city, Ras. The projects are expected to be completed by fourth quarter of FY 2009-10. The company is planning to consolidate their presence in the high growth market with additional power generation capacity.

 

 

FINANCIAL RESULT

 

The Company achieved a turnover of Rs. 36320.000 millions recording a growth of 34%. Profit before Tax and Net Profit were at Rs. 8680.000 millions and Rs. 6760.000 millions, up 20% and 17% respectively.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS 

 

Economic Scenario

 

The year 2009-10 began with a subdued global scenario. However, persistent efforts by governments across the globe to revive their financial system led to gradual improvement in the global economy during 2009-10. These efforts enabled resurgence of economic activities and reviving overall consumer demand. Majority of economies have started to come on track with their economic indicators turning positive.

 

Indian economy displayed good resilience in navigating the above global turmoil. Inherent strengths of the Indian economy like its domestic consumption led growth and healthy banking system acted as a cushion to absorb the external shocks. Supported by the government stimulus package, easy monetary policy and changed global financial environment, the Indian economy witnessed a positive turnaround during the year from lows of previous year.

 

The economy is expected to grow at 7.4% in 2009-10 against 6.7% in 2008-09 with the industrial and service sector expected to grow at 9.4% and 8.3% respectively. Manufacturing sector is expected to clock a double digit growth of 10.2%.

 

Cement Industry Outlook

 

The year 2009-10 was a good year for the cement industry. The year witnessed pleasant turnaround in the demand which picked up on account of revival in the economy. The industry proved wrong all the initial apprehensions about a weak demand growth prevailing during the beginning of the year. Strong demand from the infrastructure and housing especially rural and low cost affordable housing segment helped the industry turn out excellent performance. Cement consumption increased to 198 million ton against 178 million tons in previous year registering a double digit growth of 11%. Cement demand in North India also increased in line with the all India growth.

 

Going forward, increased investment on infrastructure development, government impetus to housing especially rural/mass housing and developments in the real estate market will continue to drive cement demand positive growth. The government target of building 20 km of roads each day is a big push to infrastructure development. They expect that cemented roads will also form part of his target. The ambitious Industrial Freight Corridor, Delhi Mumbai industrial corridor project etc. will increase the demand for cement. They believe that cement demand will continue to grow at a healthy pace.

 

However, almost all manufacturers are pursuing capacity augmentation to meet the growing demand. The year gone by witnessed capacity addition of around 50 million tons. The industry is expected to further add around 45 million tons capacity in the next two years. This is going to result in capacity overhang. Further, the cost of almost all inputs like Power and Fuel, Raw materials, Freight etc. has increased significantly. Therefore, going forward, the over capacity coupled with hardening input costs, is likely to exert pressure on margins of cement companies.

 

Company Performance

 

The year gone by witnessed company recording high growth across all its operations. Salient features of the year were as follows:

  • Turnover increased 34% to Rs. 36320.000 Millions
  • Cement Production up 21% to 93.7 lac tons
  • Operating profit rose 59% to Rs. 15780.000 Millions
  • Power consumption per ton of cement was reduced from 76.72 kwh per ton to 75.25 kwh per ton while Fuel consumption as a % to clinker was also reduced from 10.75% to 10.64%
  • Contribution of power business to the topline more than doubled
  • Company continued its leadership position across North India cement region

 

In year 2005, Company had set a vision of being a 10 Million Ton Per Annum (MTPA) Cement Company by 2010. Company has not only realized its vision but has surpassed it by achieving 12 MTPA mark. It commissioned two grinding units, one of 1.2 MTPA at Suratgarh in Rajasthan and another of 1.8 MTPA at Laksar in Uttarakhand. Company continues to tread ahead on the path of growing further. Towards this, it is setting up 1.0 MTPA capacity Clinkerisation unit (U-VIII) at Ras and 1.0 MTPA grinding unit near Jaipur. Both these capacities are expected to be completed during 2010-11.

 

Power Business

 

The company further strengthened its power business in 2009-10. It increased its power sale volumes from 117 MUs to 264 MUs. Power business contributed Rs. 1769.500 Millions in the turnover as against Rs.806.300 Millions recorded in the previous year. Sale of Power ensured

continuous maximum generation from the power plants. This has

also led to improvement in the efficiency of power plants.

 

It commissioned the 46 MW Waste Heat Recovery Projects [Green power plants, (GPPs)]. This is the largest GPP capacity in the world cement industry excluding China.

 

It also commissioned the first unit of 50 MW of its 100 MW (2 x 50 MW) thermal power plants. This has taken the total power generation capacity to 210 MW. All the above capacity expansions were implemented within budget and time estimates.

 

Company has embarked on further capacity expansion and has begun work on setting up 300 MW (2 x 150 MW) power plant with biggest Air Cooled Condenser in India at Beawar. The power plants are expected to come up by Dec. 2011 and shall be used for the purpose of merchant sale of power.

 

Buoyed by its success in power business, the company has ventured into Power trading activity and obtained Category-1 Inter State Power Trading License from the Central Electricity Regulatory Commission (CERC) in March 2010. It has established a separate power trading division consisting of experienced professionals to further expand its footprint in this area. Company has already become full member of Indian Energy Exchange (IEX) for trading power.

 

Company is exploring the possibilities to further enhance its power business.

 

Information Technology

 

The company is one of the few companies to have rolled out Oracle E business suite in its entirety with all modules at one go. It successfully demonstrated its capability to align its performance to changed technological environment by running the E business suite across all its units. Company also implemented Performance Management System (PMS) software to optimize its power generation and consumption.

 

In order to further strengthen the security and safety of its business information, the company plans to implement Disaster Recovery Plan. Towards this it has already created a new state of art Data Centre.

 

 

Fixed Assets:

·         Freehold Land

·         Leasehold Land

·         Land and Site Development

·         Buildings

·         Plant and Machinery

·         Railway Siding

·         Furniture, Fixture and Office Equipments

·         Vehicles

 

 

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER / NINE MONTH PERIOD ENDED 31ST DECEMBER, 2010

(in Millions)

Particulars

Quarter Ended

31.12.2010

(Reviewed)

Nine Months Ended

31.12.2010

(Reviewed)

Income

 

 

a) Net Sales / Income from Operations

7796.090

24417.466

b) Other Operating Income

7.856

(0.594)

Total Operating Income

7803.946

24416.872

Expenditure

 

 

(a) (Increase)/decrease in Stock in Trade

(48.796)

(161.090)

(b) Consumption of Raw Materials

918.578

2602.622

(c) Purchase of traded goods

11.060

610.519

(d) Employees Cost

479.386

1448.267

(e) Depreciation

1313.627

4107.625

(f) Power and Fuel

2067.881

6103.412

(g) Freight on inter unit Clinker Transfer

401.159

1112.555

(h) Freight and Selling Expenses

1614.610

4325.223

(i) Other Expenditure

776.796

2478.676

Total Expenditure

7534.301

22627.809

Profit / (Loss) From Operations before other Income Interest & Exceptional Items

269.645

1789.063

Other Income

10.793

442.832

Profit/(Loss) before Interest and Exceptional items

280.438

2231.895

(a) Interest and Financial Expenses

503.548

1234.483

(b) Interest Income

300.032

501.928

(c) Interest and Financial expense (Net)

203.516

642.555

Profit / (Loss) after interest before Exceptional items

76.922

1589.340

Exceptional Items :

 

 

Assets Constructed at other Premises

59.000

142.174

Provision for Statutory Liabilities of earlier years

--

--

Profit / (Loss) From Ordinary activities before Tax

17.922

1447.166

Provision for Taxation

 

 

- Current tax

(179.760)

300.700

- Prior period tax

(35.367)

(35.367)

- Deferred tax

(41.867)

(257.869)

Net Profit/(Loss) From Ordinary activities after Tax

274.916

1439.702

Extraordinary Items

--

--

Net Profit/(Loss) for the period

274.916

1439.702

Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each )

348.372

348.372

Reserves (Excluding Revaluation Reserves)

--

--

Earning Per Share (EPS) (Rs.)

 

Cash

44.40

151.83

Basic and Diluted

7.89

41.33

Public Share Holding

 

 

- Number of Shares

12270160

12270160

- Percentage of shareholding

35.22%

35.22%

Promoters and Promoter group share holding

 

 

a) Pledged / Encumbered

 

- Number of Shares

--

--

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

--

--

- Percentage of shares(as a % of the total share capital of the company)

--

--

b) Non-encumbered

 

- Number of Shares

22567065

22567065

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

100.00%

100.00%

 - Percentage of Share (as a % of the total share capital of the company)

64.78%

64.78%

 

 

SEGMENT REPORTING

(in Millions)

Particulars

Quarter Ended

31.12.2010

(Reviewed)

Nine Months Ended

31.12.2010

(Reviewed)

1. Segment Revenue (Net Sales)

 

 

a. Cement

7460.925

22459.667

b. Power

860.007

4360.847

Total

8320.932

26820.514

Less : Inter Segment Revenue

524.842

2403.048

Net Sales

7796.090

24417.466

 

 

 

2. Segment Result (Profit Before Interest and Financial Expenses, Exceptional Items and Taxes)

 

 

a. Cement

882.290

2106.500

b. Power

(611.580)

(314.716)

Total

270.710

1791.784

Less :

 

 

Interest and Financial Expenses (Net)

203.516

642.555

Exceptional Items

59.000

142.174

Other Unallocable expenditure / Income)

(9.728)

(440.111)

Profit before Tax

17.922

1447.166

 

 

 

3. Segment Capital Employed

 

 

a. Cement

13879.533

13879.533

b. Power

9729.083

9729.083

c. Unallocable Capital Employed (Includes Investments of Rs.11958.030 Millions as on 31.12.2010)

16500.760

16500.760

Total

40109.376

40109.376

 

Notes :

 

  1. The above results were taken on record at the meeting of the Board of Directors held on 31st January. 2011. The results have been reviewed by the Statutory Auditors.
  2. The Board has declared Interim dividend @ Rs. 6 per share on Equity Shares of Rs 101- each for the FY 2010-11, which shall be payable to those shareholders who hold shares on the record date i.e. 7th February. 2011.
  3. During the current quarter and 9 months, the depreciation charge is high on account of commissioning of new 145 MW power plants
  4. There were no investors complaints pending at the beginning and at close of the quarter ended 31st December, 2010 The Company has received and resolved 1 investors complaint during the said quarter.
  5. Figures for previous period have been regrouped wherever necessary.

 

 

AS PER WEBSITE:

 

Profile:

 

Subject is an energy conscious and environment friendly business organization. Having Nine Directors on its board under the chairmanship of Shri.B.G. Bangur, the policy decisions are taken under the guidance of Shri. H.M. Bangur, Managing Director. Shri. M.K.Singhi, Executive Director of the Company, is looking after all day-to-day affairs. The company is managed by well qualified professionals with broad vision who are committed to maintain high standards of quality and leadership to serve the customers to their fullest satisfaction.The board consists of eminent persons with considerable professional expertise in industry and field such as banking, law, marketing and finance and general management.

 

CMT REPORT (Corruption, Money Laundering and 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. 53.85

UK Pound

1

Rs. 84.43

Euro

1

Rs. 72.40

 

 

SCORE and RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

9

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

9

--PROFITABILIRY

1~10

9

--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

NO

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

75

 

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 and 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.