MIRA INFORM REPORT

 

 

Report Date :

03.07.2013

 

IDENTIFICATION DETAILS

 

Name :

SAGAR CEMENTS LIMITED

 

 

Registered Office :

Plot No.111, Road No.10, Jubilee Hills, Hyderabad-500033, Andhra Pradesh

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

15.01.1981

 

 

Com. Reg. No.:

01-002887

 

 

Capital Investment / Paid-up Capital :

Rs. 173.880 Millions

 

 

CIN No.:

[Company Identification No.]

L26942AP1981PLC002887

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

HYDS00253B

 

 

PAN No.:

[Permanent Account No.]

AACCS8680H

 

 

Legal Form :

A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturer and Exporter of Cement.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (53)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 10000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established company having fine track record.

 

There appears significant increase in the sales turnover as well as net profitability during 2012. Financial position appears to be strong and healthy.

 

The ratings also reflect subjects established brand in the state of Andhra Pradesh and its plans to geographically diversify itself in other states of the country. Trade relations are fair. Business is active. Payment terms are reported as regular and as per commitments.

 

The company can be considered good for 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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

Long term rating = BBB-

Rating Explanation

Moderate degree of safety and moderate credit risk.

Date

23.08.2012

 

Rating Agency Name

CRISIL

Rating

Short term rating = A3

Rating Explanation

Moderate degree of safety and higher credit risk.

Date

23.08.2012

 

 

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.

 

 

LOCATIONS

 

Registered Office/ Administrative Office :

Plot No.111, Road No.10, Jubilee Hills, Hyderabad-500033, Andhra Pradesh, India

Tel. No.:

91-40-23351571

Fax No.:

91-40-23356573

E-Mail :

info@sagarcements.in

sounder@sagarcements.in

Website :

http://www.sagarcements.com

 

 

Factory :

Mattampally, Via Huzurnagar, Nalgonda District-508204, Andhra Pradesh, India

Tel. No.:

91-8683-247039

 

 

Factory :

Pedaveedu, Via Huzurnagar, Nalgonda District-508204, Andhra Pradesh, India

Tel. No.:

91-8683-216533/ 247333

 

 

DIRECTORS

 

As on: 31.03.2012

 

Name :

Mr. O. Swaminatha Reddy

Designation :

Chairman and Independent and Non Executive

Qualification :

Charted account and Financial Management

 

 

Name :

Mr. S Veera Reddy

Designation :

Managing Director

Date of Birth/Age :

76 Years

Experience :

52 Years

Date of Appointment :

13.07.1991

 

 

Name :

Dr. S Anand Reddy

Designation :

Joint Managing Director

Date of Birth/Age :

48 Years

Qualification :

M.B.B.S

Experience :

21 Years

Date of Appointment :

21.11.1992

 

 

Name :

Mr. S Sreekanth Reddy

Designation :

Executive Director

Date of Birth/Age :

40 Years

Qualification :

B.E and PG Diploma

Experience :

16 Years

Date of Appointment :

26.06.2003

 

 

Name :

Mr. K Thanu Pillai

Designation :

Independent and Non Executive

Qualification :

MBA and CAIIB

 

 

Name :

Mr. Glibert Noel Claude Natta

Designation :

Non Executive

Qualification :

MBA, ESSEC Business School

 

 

Name :

Mr. Werner C R Poot

Designation :

Independent and Non Executive

 

 

Name :

Mr. P Rajeswara Rao

Designation :

APIDC Nominee

 

 

Name :

Mr. K. Rajendra Prasad

Designation :

APIDC Nominee

 

 

Name :

Mr. G. Suneel Babu

Designation :

IDBI Nominee and Independent (w.e.f 29.04.2011)

 

 

KEY EXECUTIVES

 

Name :

Mr. R Soundararajan

Designation :

Company Secretary

 

 

Senior Management Team:

  • Corporate Office:

 

 

Name :

Mr. M.S.A Narayana Rao

Designation :

Group President

 

 

Name :

Mr. M.V. Subba Rao

Designation :

Senior Vice President

 

 

Name :

Mr. P. Vasudeva  Reddy

Designation :

Vice- President Work

 

 

Name :

Mr. K. Ganesh

Designation :

Vice President Project

 

 

Name :

Mr. P. Venkat Reddy

Designation :

Vice President – Finance

 

 

Name :

Mr. P.S. Prasad

Designation :

Vice President- Marketing

 

 

Name :

Mr. O. Anji Reddy

Designation :

Chief general Manager – Electrical and Installations

 

 

Name :

K.V. Ramana

Designation :

Chief General Manager – Mines

 

 

 
  • Sites

 

 

Name :

Mr. M. V. Ramana Murthy

Designation :

General Manager – Production and QC

 

 

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

 

 

a) Individuals / Hindu Undivided Family

8678608

49.91

b) Bodies corporate

344785

1.98

Sub Total

9023393

51.89

2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

9023393

51.89

(B) Public Shareholdings

 

 

1) Institutions

 

 

a) Mutual Funds

1288025

7.41

b) Financial Institutions/Banks

4050

0.02

c) Foreign Institutional Inventors

3319

0.02

Sub Total

1295394

7.45

 

 

 

2) Non – Institution

 

 

a) Bodies corporate

4009714

23.06

 

 

 

b) Individuals

 

 

i. Individual Shareholders holding nominal share capital upto Rs.0.100 Million

1340389

7.71

ii. Individual Shareholders holding nominal share capital in excess Rs.0.100 Million

669360

3.85

 

 

 

c) Any other

1049764

6.04

i) Foreign Corporate Bodies

1000000

5.75

ii) Hindu Undivided Families

30382

0.17

iii) Clearing Members

562

0.00

iv) Non Resident Indians 

18820

0.11

Sub Total

7069227

40.66

Total Public shareholding (B)

8364621

48.11

Total (A)+(B)

17388014

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Cement.

 

 

Products :

Product Description

ITC Code

Cement

252300

Clinker

252310

 

 

PRODUCTION STATUS (As on 31.03.2011)

 

CAPACITIES AND PRODUCTIONS (MATTAMPALLY) 

 

Licensed and Installed Capacity (TPA)

2350000

Actual Production (MTS)

1277720

 

CAPACITIES AND PRODUCTIONS (PEDAVEEDU) 

 

Licensed and Installed Capacity (TPA)

346500

Actual Production (MTS)

212942

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

·         State Bank of Hyderabad

·         State Bank of India

·         IDBI Bank Limited

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2012

As on

31.03.2011

Long term borrowing

 

 

Andhra Pradesh State Financial Corporation Limited (Note. 5 and 6)

30.030

53.750

Term Loans from Banks

 

 

IDBI Bank Limited (Note. No.1)

150.000

350.000

State Bank of India (Note No.2)

72.600

162.600

State Bank of Hyderabad (Note No.3)

71.500

171.500

State Bank of Hyderabad (Note No.4)

360.000

410.000

Hire Purchase Loans

 

 

Vehicle Loans from Banks

64.090

0.440

 

 

 

Short term borrowing

 

 

State Bank of Hyderabad

351.580

293.970

State Bank of India

290.500

327.070

IDBI Bank Limited

112.210

99.500

Bills Discounting

22.840

36.100

Total

1525.350

1904.930

 

Note:

1) Term Loan of Rs.1000 Million in Indian Rupees was taken from IDBI Bank during the year 2008-09 and is repayable in 60 monthly installments of Rs.16.700 Million each. The loan was sanctioned with interest at 175 bps below Bench Mark Prime Lending rate and is payable at monthly rests. As of 31.03.2012, out of 60 installments, 39 installments have been paid and the balance installments to be paid are 21. Present rate of interest as on 31.03.2012 is 14% (31.03.2011: 12.75%). The term loan from the bank is secured by pari-passu charge on the fixed assets i.e, Land, Buildings, Plant and Machinery, Mining Equipment owned by or belonging to the company both present and future, and by second charge on the current assets of the company and are guaranteed by Shri. S. Veera Reddy, Managing Director, Dr. S. Anand Reddy, Joint Managing Director and Shri. S. Sreekanth Reddy, Executive Director.

 

2) Term Loan of Rs.450 Million in Indian Rupees was taken from State Bank of India during the year 2008-09 and is repayable in 60 monthly installments of Rs.7.500 Million each. The loan was sanctioned with interest at 0.50% below Stat Bank Advance Rate and is payable at monthly rests. As of 31.03.2012 out of 60 installments 39 installments have been paid and the balance installments to be paid are 21. Present rate of interest as on 31.03.2012 is 14.75% (31.03.2011: 13.00%). The term loan from the bank is secured by pari-passu charge on the fixed assets i.e, Land, Buildings, Plant and Machinery, Mining Equipment owned by or belonging to the company both present and future, and by second charge on the current assets of the company and are guaranteed by Shri. S. Veera Reddy, Managing Director, Dr. S. Anand Reddy, Joint Managing Director and Shri. S. Sreekanth Reddy, Executive Director.

 

3) Term Loan of Rs.500 Million in Indian Rupees was taken from State Bank of Hyderabad during the year 2008- 09 and is repayable in 60 monthly installments of Rs.7.500 Million each . The loan was sanctioned with interest at 75 base points below prime lending rate of the Bank and is payable at monthly rests. As of 31.03.2012, out of total 60 installments, 39 installments have been paid and the balance installments to be paid are 21. Present rate of interest as on 31.03.2012 is 14.25% (31.03.2011: 13.00%). The term loan from the bank is secured by pari-passu charge on the fixed assets i.e, Land, Buildings, Plant and Machinery, Mining Equipment owned by or belonging to the company both present and future, and by second charge on the current assets of the company and are guaranteed by Shri S. Veera Reddy, Managing Director, Dr. S. Anand Reddy, Joint Managing Director and Shri S. reekanth Reddy, Executive Director.

 

4) Term Loan of Rs.450 Million in Indian Rupees was taken from State Bank of Hyderabad during the year 2010- 11 and is repayable in 60 monthly installments from December, 2010. As of 31.03.2012 out of 60 installments, 16 Installments have been paid and balance 44 installments to be paid every month at Rs.2.500 Million for first 9 Installments and Rs.10 Million for next 27 installments and Rs.15 Million for next 7 installments and last installment of Rs.12.50 Million. The interest was fixed at 4.25% above Basic Rate of interest. Present rate of interest as on 31.03.2012 is 14.75% (31.03.2011: 13.25%). The term loan from the bank is secured by pari-passu charge on the fixed assets i.e, Land, Buildings, Plant and Machinery, Mining Equipment owned by or belonging to the company both present and future, and by second charge on the current assets of the company and are guaranteed by Shri S. Veera Reddy, Managing Director, Dr. S. Anand Reddy, Joint Managing Director and Shri S. Sreekanth Reddy, Executive Director.

 

5) Term Loan of Rs.100 Million in Indian Rupees was taken from Andhra Pradesh State Financial Corporation Limited, during the year 2008-09 and is repayable in 22 Quarterly installments from January, 2009 @ Rs.4.40 Million. As of 31.03.2012 out of Quarterly 22 installments, 19 have been paid and the balance 3 installments are to be paid. The interest was fixed at 2.75% below Bench Mark Prime Lending rate of interest. Present rate of interest as on 31.03.2012 is 11.75% (31.03.2011: 11.75%). The term loan from the APSFC is secured by pari-passu charge on the fixed assets i.e, Land, Buildings, Plant and Machinery, Mining Equipment owned by or belonging to the company both present and future, and by second charge on the current assets of the company and are guaranteed by Shri S. Veera Reddy, Managing Director, Dr. S. Anand Reddy, Joint Managing Director and Shri S. Sreekanth Reddy, Executive Director.

 

6) Term Loan of Rs.50 Million in Indian Rupees was taken from Andhra Pradesh State Financial Corporation Limited, during the year 2010-11 and is repayable in 55 monthly installments of Rs.91 Million each. As of 31.03.2012 out of 55 installments, 11 installments have been paid and balance installments to be paid are 44. The interest was fixed at 3% below Bench Mark Prime Lending rate of interest. Present rate of interest as on 31.03.2012 is 13% (31.03.2011: 13.00%). The term loan from the APSFC is secured by pari-passu charge on the fixed assets i.e, Land, Buildings, Plant and Machinery, Mining Equipment owned by or belonging to the company both present and future, and by second charge on the current assets of the company and are guaranteed by Shri S.Veera Reddy, Managing Director, Dr.S.Anand Reddy, Joint Managing Director and Shri S.Sreekanth Reddy, Executive Director.

 

8) Vehicle Loans from L and T Finance and various Banks is secured by the Hypothecation of Specific assets purchased from that loan and further secured by personal guarantees of Dr. S. Anand Reddy, Joint managing Director and Shri S. Sreekanth Reddy, Executive Director.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

P Srinivasan and Company

Chartered Accountants

Address :

H.No.12-13-422, Street No.1, (Lane Opposite Bank of Baroda), Tarnaka, Secundrabad – 500017, India

 

 

Cost Auditors :

 

Name :

Narasimha Murthy and Company

Chartered Accountant

Address :

104, Pavani Estate, Y V Rao Mansion, Himayathnagar, Hyderabad-500029, Andhra Pradesh, India

 

 

Associates :

Vicat Sagar Cement Private Limited, India

 

 

Transactions with Companies in which Directors are interested :

·         Panchavati Polyfibres Limited

·         Sagarpriya Housing and Industrial Enterprises Limited

·         Golkonda Hospitality Services and Resorts Limited

·         Sagar Power Limited

·         BSCPL Infrastructure Limited

 

 

CAPITAL STRUCTURE

 

As on: 31.03.2012

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

20000000

Equity Shares

Rs.10/- each

Rs. 200.000 Millions

2000000

Preference Shares

Rs.10/- each

Rs. 20.000 Millions

 

TOTAL

 

Rs. 220.000 Millions

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

17388014

Equity Shares

Rs.10/- each

Rs. 173.880 Millions

 

 

 

 

 

 

SHARE CAPITAL

 

 

Reconciliation of shares outstanding at the beginning and at the end of the reporting period

 

Equity shares

As on 31.03.2012

 

No. of Share

Rs. In Millions

At the beginning of the period

15002300

150.020

No of shares Issued during the period (See note 1)

2385714

23.860

Outstanding at the end of the period

17388014

173.880

 

 

1.       The company had issued 2,385,714 equity shares during the year ended 31.03.2012 to the equity shareholders of erstwhile Amareswari Cements Limited pursuant to the Scheme of Arrangement for Merger approved by the shareholders on 7th March 2011 and later sanctioned by the Honorable High Court of Andhra Pradesh. The amount was shown as Equity Share Capital Suspense Account during the year ended 31.03.2011 pending allotment of the same.

 

2.       The Company has only one class of equity shares having a par value of Rs.10 per share. Each holder of Equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

 

3.       For the year ended 31 March 2012, the amount of per share dividend recognized as distribution to equity shareholders is Rs.3 (31 March 2011: Rs.2 per share).

 

4.       In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

 

 

Details of Shareholders holding more than 5% shares in the company

 

Shareholder's Name

As on 31.03.2012

 

No. of Share

Rs. In Millions

S. Veera Reddy

1643795

9.450

W. Malathi

 

 

S. Aruna

1369545

7.880

S. Rachana

1153230

6.630

S. Anand Reddy

1137743

6.540

S. Sreekanth Reddy

1085757

6.240

S. Vanajatha

990769

5.700

Amareswari Cements Limited

 

 

AVH Resources India Pvt. Limited

2636366

15.160

SBI Mutual Fund

1170000

6.730

Twinvest Financial Services Limited

1142985

6.570

Parficim S.A.S (A Subsidiary of Vicat S.A

1000000

5.750

 

 

As per of the company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2012

31.03.2011

I.        EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

173.880

173.880

(b) Reserves & Surplus

 

2423.130

2042.590

(c) Money received against share warrants

 

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

 

0.000

0.000

Total Shareholders’ Funds (1) + (2)

 

2597.010

2216.470

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

 

798.280

1198.350

(b) Deferred tax liabilities (Net)

 

446.060

359.770

(c) Other long term liabilities

 

146.480

148.810

(d) long-term provisions

 

12.320

5.230

Total Non-current Liabilities (3)

 

1403.140

1712.160

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

777.130

756.640

(b) Trade payables

 

750.050

472.760

(c) Other current liabilities

 

901.410

855.910

(d) Short-term provisions

 

198.980

101.310

Total Current Liabilities (4)

 

2627.570

2186.620

 

 

 

 

TOTAL

 

6627.720

6115.250

 

 

 

 

II.    ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

3433.660

3464.050

(ii) Intangible Assets

 

0.000

0.000

(iii) Capital work-in-progress

 

68.710

56.010

(iv) Intangible assets under development

 

0.000

0.000

(b) Non-current Investments

 

860.270

860.270

(c) Deferred tax assets (net)

 

0.000

0.000

(d)  Long-term Loan and Advances

 

235.730

118.040

(e) Other Non-current assets

 

0.000

0.000

Total Non-Current Assets

 

4598.370

4498.370

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

0.000

0.000

(b) Inventories

 

856.890

575.390

(c) Trade receivables

 

484.480

459.420

(d) Cash and cash equivalents

 

27.200

28.590

(e) Short-term loans and advances

 

439.850

383.740

(f) Other current assets

 

220.930

169.740

Total Current Assets

 

2029.350

1616.880

 

 

 

 

TOTAL

 

6627.720

6115.250

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

 

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

 

150.023

2] Equity Share Capital Suspense

 

 

0.000

3] Reserves & Surplus

 

 

1920.968

4] (Accumulated Losses)

 

 

0.000

NETWORTH

 

 

2070.991

LOAN FUNDS

 

 

 

1] Secured Loans

 

 

2218.235

2] Unsecured Loans

 

 

0.000

Creditor For Capital Goods

 

 

55.652

TOTAL BORROWING

 

 

2273.887

DEFERRED TAX LIABILITIES

 

 

303.589

 

 

 

 

TOTAL

 

 

4648.467

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

 

3575.358

Capital work-in-progress

 

 

101.253

 

 

 

 

INVESTMENT

 

 

408.868

DEFERREX TAX ASSETS

 

 

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 
 

488.615

 

Sundry Debtors
 
 

411.879

 

Cash & Bank Balances
 
 

26.732

 

Other Current Assets
 
 

0.000

 

Loans & Advances
 
 

439.647

Total Current Assets
 
 

1366.873

Less : CURRENT LIABILITIES & PROVISIONS
 
 

 

 

Sundry Creditors
 
 

423.613

 

Other Current Liabilities
 
 

285.697

 

Provisions
 
 

94.575

Total Current Liabilities
 
 

803.885

Net Current Assets
 
 

562.988

 

 

 

 

MISCELLANEOUS EXPENSES

 

 

0.000

 

 

 

 

TOTAL

 

 

4648.467

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Revenue from operations

6061.140

4250.900

4795.733

 

 

Other Income

7.140

88.860

67.878

 

 

TOTAL                                     (A)

6068.280

4339.760

4863.611

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

540.220

496.410

 

 

 

Changes in inventories of finished goods and work-in-progress

130.100

(226.960)

 

 

 

Manufacturing expenses

2324.110

1979.590

 

 

 

Employee benefit expenses

265.600

183.840

 

 

 

Other expenses

1561.330

1092.960

 

 

 

TOTAL                                     (B)

4821.360

3525.840

3999.019

 

 

 

 

 

Less

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

1246.920

813.920

864.592

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

341.820

311.390

289.507

 

 

 

 

 

 

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

905.100

502.530

575.085

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

258.970

275.980

276.885

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

646.130

226.550

298.200

 

 

 

 

 

Less

TAX                                                                  (H)

204.970

52.430

106.965

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

441.160

174.120

191.235

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

828.949

711.457

612.688

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Proposed Dividend

NA

34.776

37.506

 

 

Corporate Dividend Tax

NA

4.452

4.960

 

 

Transfer to General Reserve

NA

17.400

50.000

 

BALANCE CARRIED TO THE B/S

NA

828.949

711.457

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Capital Goods

0.000

0.000

11.406

 

 

Coal, Components and Spare parts

6.690

297.859

259.495

 

TOTAL IMPORTS

6.690

297.859

270.901

 

 

 

 

 

 

Earnings Per Share (Rs.)

25.37

11.61

12.75

 

 

QUARTERLY RESULTS

           

PARTICULARS

 

30.06.2012

1st  Quarter

30.09.2012

2nd Quarter

31.12.2012

3rd Quarter

31.03.2013

4th Quarter 

Net Sales

1503.500

1358.500

1358.500

1510.800

Total Expenditure

1303.000

1195.100

1165.600

1499.500

PBIDT (Excl OI)

200.500

163.400

192.900

11.300

Other Income

5.700

43.500

(1.100)

66.100

Operating Profit

206.200

206.900

191.800

77.400

Interest

78.900

78.900

75.200

72.700

Exceptional Items

0.000

0.000

0.000

0.000

PBDT

127.300

128.000

116.600

4.700

Depreciation

65.400

66.900

68.300

66.900

Profit Before Tax

61.900

61.200

48.300

(62.200)

Tax

20.700

13.000

7.600

(19.800)

Provisions and contingencies

0.000

0.000

0.000

0.000

Profit After Tax

41.200

48.200

40.700

(42.400)

Extraordinary Items

0.000

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

0.000

Net Profit

41.200

48.200

40.700

(42.400)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)

7.27

4.12

3.93

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

10.67

5.32
6.22

 

 

 

 
 

Return on Total Assets

(PBT/Total Assets}

(%)

11.33

4.36
6.03

 

 

 

 
 

Return on Investment (ROI)

(PBT/Networth)

 

0.25

0.10

0.14

 

 

 

 
 

Debt Equity Ratio

(Total Debt/Networth)

 

0.61

0.88
1.10

 

 

 

 
 

Current Ratio

(Current Asset/Current Liability)

 

0.77

0.73
1.70

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

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

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

--

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

--

22]

Litigations that the firm / promoter involved in

--

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

--

26]

Buyer visit details

--

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

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

 

 

UNSECURED LOAN

(Rs. In Millions)

Particulars

As on

31.03.2012

As on

31.03.2011

Long term borrowing

 

 

Other Loans and Advances

 

 

Sales Tax Deferment

50.060

50.060

 

 

 

Total

50.060

50.060

 

Note:

Sales Tax Deferred amount payable pertains to Amareswari Cements Limited. This is pursuant to the Scheme of

Merger approved by the shareholders on 7th March 2011 and later sanctioned by the Honorable High Court of

Andhra Pradesh. The repayment schedule is as below:

(Rs. In Millions)

FY 2014-15

0.290

FY 2015-16

8.980

FY 2016-17

21.860

FY 2017-18

18.930

Total

50.060

 

 

COMPANY'S PERFORMANCE

 

While the total income of the Company rose by 40%, the Profit before and after tax went up by 185% and 153% respectively over the previous year.

 

The performance of the company in terms of production and sale of clinker / cement is given below:

 

Description

2012-11

2010-11

Production MT

 

 

Clinker

1348080

1510135

Cement

1625336

1490662

Sales in MT

 

 

Clinker

 

30840

Cement

1627456

1469172

Cement – Second Sales

0

0

Self Consumption

3936

877

Total Cement Sales

1631392

1470049

 

 

Sagar Cements could register a reasonable level of growth in 2011-12, both in terms of volume as well as price. Its sales in quantitative terms went up by 11% over the previous year. The average net sales realization per ton of cement was also higher at Rs.2945/- an increase of 32 %, over the previous year, resulting in an net operating revenue of Rs.6061 million.

 

 

INDUSTRY REVIEW

 

Cement is produced in around 150 countries across the Global. Global cement production in 2011 stood at 3400

million tonnes, with China accounting for 2000 million tonnes, followed by India, a distant second, with a total production of 210 million tonnes. The production of Cement is highly skewed with China, India and United States together accounting for more than 65 % of total cement production.

 

As cement is an essential component of infrastructure development world over, the need for housing and continued thrust on the investments in infrastructure development are driving the global demand for cement, more particularly among the developing countries. But, with the current global economic crisis affecting the majority of countries, regions such as North America, Europe and the Middle East registered significantly decreased cement consumption due to reduced construction activity

 

However, a robust outlook in the construction sector in the developing regions and growing capital investment abroad by large trans-national cement manufacturers are expected to stimulate demand for cement globally.

 

NATIONAL SCENARIO

 

As one of the basic infrastructure industries, cement industry continues to contribute in a significant way to the Indian economy in terms of employment generation, tax revenues, and industrial growth. The per capita consumption of cement is an important indicator of the country's economic development.

 

Cement industry in India comprises of around 185 large cement plants with a combined installed capacity of around 318 MTPA and more than 360 mini cement plants. Large producers contribute about 97% to the installed capacity while mini plants account for the rest. Among these, 98% of the capacity is in the private sector and the rest in the public sector. Maximum number of cement plants are located in Andhra Pradesh, which has 37 large cement plants with a total capacity of 68 MTPA.

 

This industry, which is the second largest in the world, produces several varieties of cement such as Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement (PBFS), Oil Well Cement, Rapid Hardening Portland Cement, Sulphate Resisting Portland Cement, White Cement, etc.

 

Cement industry in India has made great progress in technological up-gradation and assimilation of latest technology. Presently, about 97 per cent of the total capacity in the industry is based on modern and environment-friendly dry process technology.

 

Being a huge country, there is a difference in the region wise demand for cement in the country, which is broadly divided into the western, eastern, northern and southern regions. Cement being a bulk item, transporting it over long distances can prove to be uneconomical. Thus, the industry is completely domestic driven.

 

Despite higher cement prices realized occasionally, the margins continue to be under severe pressure particularly over the last couple of years due to steep hike in cost of all major inputs like raw material, fuel, power and freight, which together account for around 70 per cent of the cost of production.

 

The year 2011-12 saw a slowdown in the economy, forcing the financial institutions to tighten their credit norms, which inter-alia, impacted the on-going as well as upcoming real estate, infrastructure and other projects leading to a fall in the demand for cement and resulting in its excess supply, thus putting pressure on price. Cement being a low value and high volume output, does not offer much scope for export either.

 

 

SAGAR CEMENTS - FINANCIAL HIGHLIGHTS

 

Despite constraints, Sagar Cements registered a reasonable growth, both in terms of volume as well as price in 2011-12. Its sales in quantitative terms went up by 11% over the previous year. The average net sales realization per tone of cement was also higher at Rs.2,945/-, an increase of 32 %, over the previous year, resulting in an net operating revenue of Rs.6061 million. The Board of Directors has ecommended a dividend at Rs.3/- (30%) per share on the 17388014 equity shares of the Company.

 

PRODUCTION AND SALES PERFORMANCE

 

While the year 2010-11 saw Sagar Cements not being able to take full advantage of the just then increased capacity due to lower demand for cement, which had forced the Company to curtail its production in the said year, the year under discussion saw an increase in production by around 9 %, accompanied by an increase in the net sales realization by around 32% over the previous year.

 

FINANCIAL REVIEW

 

The company during the year registered Net Sales of Rs.6061.140 Millions, an increase of 43 % over previous year. The Profit before Tax (PBT) for the year stood at Rs. 646.130 Millions compared to Rs. 226.550 Millions during the previous year, an increase by 185 %.

 

OUTLOOK

 

In the prevailing economic scenario, the future, atleast in the near term, does not appear to be rosy for the cement industry. The industry will have to deal with problems like rising energy costs compounded with the depreciation of the rupee, higher freight and distribution costs and low price realizations due to weak demand. The weak economic climate will also have an impact on smaller cement producers and their operations, leading to a spate of consolidations. The next couple of years may see a period of consolidation in the industry with the smaller players withdrawing from the industry by selling out to the financially stronger cement producers.

 

The per capita consumption of cement being very low in India, there is vast scope for growth in demand for cement on the long term. The main drivers for the growth in demand for cement being road and housing projects, the increased spending by the Government in these areas and the revival of the real estate sector would ensure no let up in the demand for cement, not with standing the substantial additions to capacity now being witnessed in the industry. Sagar Cements is operationally strong and poised to benefit from such a demand positive situation and will continue to focus on maintaining good plant performance and optimizing efficiencies.

 

CONTINGENT LIABILITIES

 

Particulars

As on 31.03.2012

 

Disputed Amount

Paid Under Protest

APTRANSCO Voltage surcharge and grid supporting charges (Refer Note 1)

17.35

10.80

Demand by Sales tax authorities year 2009-10-Sale of Fixed Assets (Refer Note 2)

10.94

2.74

Demand by Sales Tax authorities year 1999-2000-Interest on delayed payment (Refer Note 3)

1.96

0.49

Demand by Income tax Department Assessment year 2006-07 disallowances (Refer Note 4)

7.50

0.00

Demand by Central Excise Department benefit of Cenvat credit on capital goods (Refer Note 5)

22.50

19.50

Demand by Central Excise Department benefit of Cenvat credit on capital goods (Refer Note 6)

65.08

0.00

Demand by Road Transport Authority, Nalgonda for payment of Life Tax on dumpers used in the mines (Refer Note No. 7)

2.85

0.32

Bank Guarantees

33.53

0.00

 

 

1.       APTRANSCO had raised a demand of Rs.17.350 Million towards voltage surcharge and grid supporting charges and the company has paid Rs.10.800 Million under protest. The said demand is contested by the company and the matter is pending before the Division Bench of the Honorable High Court of Andhra Pradesh.

 

2.       In the year 2009-10, Sales Tax Authorities raised a demand for Rs.10.940 Million in respect of tax on sale of fixed assets. The company has paid an amount of Rs. 2.740 Million and contested before the Sales Tax Appellate Tribunal.

 

3.       Demand raised by the Sales Tax Authorities on Amareswari Cements Limited for a sum of Rs.1.96 Million (this is consequent to the merger of Amareswari Cements Limited with Sagar Cements Limited) towards interest u/s.16(3) of the APGST Act, on delayed payment of tax for the AY 1999-2000. The company filed an appeal with Sales Tax Appellate Tribunal by paying an amount of Rs.0.490 Million.

 

4.       The Income Tax Department has raised a demand of Rs.7.500 Million on disallowances of certain expenditure related to the AY 2006-07 and the same is contested before the Commissioner Appeals.

 

5.       The Excise Department has raised a demand of Rs.22.500 Million denying the benefit of Cenvat credit on dumpers used in captive mines. The company has paid an amount of Rs. 19.50 Million under protest and filed an appeal with CESTAT, Bangalore. Matter is pending before CESTAT.

 

6.       The Excise Department has raised a demand of Rs.65.080 Million denying the Cenvat credit on MS Steel, Cement, TMT bars etc., used in expansion. The company has contested the same before CESTAT and the matter is pending for hearing.

 

7.       Show cause notice has been served by the RTA, Nalgonda demanding Life Tax on 8 dumpers purchased during year 2006-2010 and used in the captive mines. The matter is contested and pending in the Honorable High Court of Andhra Pradesh.

 

 

UN AUDITED FINANCIAL RESULTS FOR THE THIRD QUARTER ENDED 31.12.2012

 

Sr.

No.

 

Particulars

Quarter Ended

Year Ended

 

 

 

 

 

 

31.12.2012

(Unaudited)

30.09.2012

(Unaudited)

31.12.2012

(Unaudited)

1

 

Income from Operations

 

 

 

 

a)

Net Sales/Income from Operations (Net of Excise Duty)

1219.208

1358.506

4074.375

 

b)

Other Operating Income

139.258

0.000

146.073

 

 

Total Income from Operations (Net)

1358.466

1358.506

4220.448

2

 

Expenses

 

 

 

 

a)

Cost of Materials consumed

122.404

128.445

385.289

 

b)

Changes in Inventories of Finished goods. Work-in-Progress and Stock in Trade

(26.936)

(42.695)

(41.354)

 

c)

Employee Benefits Expense

65.968

61.312

191.059

 

d)

Depreciation

68.283

66.852

200.531

 

e)

Power and Fuel

492.975

529.832

1547.836

 

f)

Freight and forwarding expenses

237.758

261.929

774.659

 

8)

Other expenses

273.446

256.312

806.259

 

 

Total Expenses

1233.898

1261.987

3864.279

3

 

Profit/ (Loss) from Operations before Other Income, Finance Costs (1-2)

124.568

96.519

356.169

4

 

Other Income

(1.076)

43.523

48.150

5

 

Profit / (Loss) from Ordinary Activities before Finance Costs and exceptional items (3+4)

123.492

140.042

404.319

6

 

Finance Costs

75.169

78.848

232.869

7

 

Profit / (Loss) from Ordinary Activities after Finance Costs but before exceptional items (5-6)

48.323

61.194

171.450

8

 

Exceptional Items

0.000

0.000

0.000

9

 

Profit / ( Loss) from Ordinary Activities before tax (7+8)

48.323

61.194

171.450

10

 

Tax expense

7.595

12.950

41.250

11

 

Net Profit/(Loss) from Ordinary Activities after Tax (9-10)

40.728

48.244

130.200

12

 

Extra-ordinary items (net of tax expense)

0.000

0.000

0.000

13

 

Net Profit / (Loss) for the period (11 + 12)

40.728

48.244

130.200

14

 

Share of Profit / (Loss) of associates

0.000

0.000

0.000

15

 

Minority Interest

0.000

0.000

0.000

16

 

Net Profit/(Loss) after taxes and Minority Interest and Share of Profit/ (Loss) of associates (13 + 14+15)

40.728

48.244

130.200

17

 

Paid-up equity share capital (Face value Rs. 10/ per share)

173.880

173.880

173.880

18

 

Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year

 

 

 

19

i.

Earnings Per Share (Before Extra-ordinary items) (of Rs. 10 each) ( Not Annualized)

 

 

 

 

a)

Basic

2.34

2.77

7.49

 

b)

Diluted

2.34

2.77

7.49

 

ii.

Earnings Per Share (after Extra-ordinary items) (of Rs. 10 each) ( Not Annualized)

 

 

 

 

a)

Basic

2.34

2.77

7.49

 

b)

Diluted

2.34

2.77

7.49

 

 

 

 

 

 

(A)

 

Particulars of Shareholding

 

 

 

1

 

Public Shareholding

 

 

 

 

-

No. of shares

8364621

8364621

8364621

 

-

Percentage of Shareholding

48

48

48

2

 

Promoters and Promoter Group Shareholding

 

 

 

 

a)

Pledged/ Encumbered

 

 

 

 

-

Number of shares

Nil

Nil

Nil

 

-

Percentage of shares (As a % of the total shareholding of Promoters and Promoter Group)

Nil

Nil

Nil

 

-

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

Nil

Nil

Nil

 

b)

Non-Encumbered

 

 

 

 

-

Number of shares

9023393

9023393

9023393

 

-

Percentage of shares (As a % of the total shareholding of Promoters and Promoter Group)

100

100

100

 

 

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

52

52

52

 

 

 

Particulars

3 months ended (31.12.2012)

(B)

INVESTOR COMPLAINTS

 

 

Pending at the beginning of the Quarter

Nil

 

Received during the Quarter

16

 

Disposed of during the Quarter

16

 

Remaining unresolved at the end of the Quarter

Nil

 

Note:

1.       The above results were reviewed by the Audit Committee of the Board and later approved by the Board at its meeting held on 23rd January, 2013.

 

2.       The Statutory Auditors of the company have carried out a Limited Review of the above results.

 

3.       The company operates in only one segment namely manufacture of cement.

 

4.       Figures for previous year have been regrouped wherever necessary.

 

 

FIXED ASSETS:

 

·         Land

·         Building

·         Plant and Machinery

·         Electrical Installation

·         Furniture and Fixtures

·         Office Equipments

·         Computers

·         Vehicles

·         Other Equipments

 

 

 

 

 

 

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. 59.41

UK Pound

1

Rs. 90.38

Euro

1

Rs. 77.61

 

 

INFORMATION DETAILS

 

Report Prepared by :

DPH

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

 

 

 

TOTAL

 

53

 

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.