ACC Financial Results

8/8/2019 ACC Financial Results

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ACC LIMITED

(formerly The

AssociatedCement

Companies

Limited)

Close

Registered Office :

Cement House,

121, Maharshi Karve

Road, Mumbai - 400

020

AUDITED

CONSOLIDATED AND

STANDALONE

FINANCIAL RESULTSFOR THE YEAR

ENDED DECEMBER

31, 2007.

CONSOLIDATED

PROFIT AFTER TAXFOR 2007 UP BY 15

% AT Rs. 1427.34

CRORE( STANDALONE -Rs.

1438.59 CRORE UP

BY 17 %).

CONSOLIDATED

SALES VOLUME FOR

2007 19.97 MT UP

BY 6.1%

CONSOLIDATED SALESVALUE FOR 2007 UP BY21 % (STANDALONE UPBY 21%)

FINAL DIVIDEND 100 %- TOTAL DIVIDEND 200% INCLUDING INTERIMDIVIDEND OF 100%.


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YEAR ENDED YEAR ENDED

AUDITED

1 7915.98 6504.46

848.55 653.22

7067.43 5851.24

2

35.43 20.5

I. The audit

committee have

reviewed and Board

of Directors of the

company have

approved the auditedConsolidated andStandalone

accounts for the year

2007 ( January-December) at its

meeting held on

January 31,2008 and

the text of this

statement was alsotaken on record.

II. CONSOLIDATED

RESULTS

31-12-2007 31-12-2006

AUDITED

Rs.Crore Rs.Crore

SALES /INCOME FROMOPERATIONS

LESS: EXCISEDUTYRECOVERED

NET SALES /INCOME FROMOPERATIONS

OTHERINCOME

i) Dividend


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7.32 1.95

66.69 87.69

12.38 22.28

3 0.18 0.9

4 7189.43 5984.56

5

1.17 34.32

848.52 687.46

93.31 53.42

356.56 322.53

1198.63 979.13

937.9 811.86

129.25 86.56

ii) Gain/(Loss) onforeignexchange

(Net)

iii) Otheritems

iv) Profit onsale ofinvestments

Share ofearnings ofAssociates

TOTALINCOME(1+2+3)

EXPENDITURE

a)( Increase)

/Decrease instock in tradeand work in

progress

b)Consumptionof Rawmaterials

c) Purchase oftraded Cement& OtherProducts

d) Employeecost

e) Power &

Fuel

f) OutwardFreightcharges onCement etc.

g) ExciseDuties (Net)


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313.02 260.95

1570.93 1220.58

5449.29 4456.81

6 24.37 54.37

7 0.19 0.83

8

-201.43 -160.91

-8.42 -

9 1925.43 1633.46

10 498.09 393.86

11 1427.34 1239.6

h)Depreciation

i) OtherExpenditure

Total

Expenditure

INTEREST(NET)

MINORITYINTEREST

EXCEPTIONAL ITEMS

a) Profit onsale of landandundertakings

b) Profit onsale ofinvestments insubsidiary /associates

Profit fromordinaryactivitiesbefore tax(4) -(5+6+7+8)

Tax Expenses( including

Fringe BenefitTax)

Net Profitfor theperiod (9-10)


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12 187.83 187.48

13 3974.44 2977.01

14 76.16 66.43

75.85 65.92

15

10,69,92,337 12,14,40,580

57.02% 64.85%

2. Exceptional Items include:

Paid-upEquity ShareCapital

( Face valueper shareRs.10 )

ReservesexcludingRevaluationReserves

BasicEarnings perShare

Rs.

DilutedEarnings perShare

Rs.

Publicshareholding

Number ofShares

Percentage ofshareholding

Notes:

1. The Consolidated financial results are prepared in accordance with the AccountingStandard (AS) 21"Consolidated Financial Statements" and (AS) 23 " Accounting forInvestments in Associates in Consolidated Financial Statements" issued by the Instituteof Chartered Accountants of India.

i. Profit of Rs 201.43 crore on disposal of certain surplus asset including land atSurajpur, Haryana.

ii. Profit from divestment of subsidiary and associates is on account of wholly ownedsubsidiary, ACC Nihon Castings Limited. ( Rs.2.51 crore) and associates Almatis ACCLtd. ( Rs.5.91 crore)


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7. Previous period figures have been regrouped wherever necessary.

YEAR ENDED YEAR ENDED

AUDITED

1 7848.32 6453.07

841.15 649.59

7007.17 5803.48

2

41.03 26

7.32 1.6

68.07 91.79

3. Based on a review and reassessment of the intrinsic machine configuration andcapabilities, plant and machinery items at the Company's grinding units at Tikaria, Sindriand Damodhar which hitherto being depreciated on the basis of " Continuous Process"are now being depreciated at shift rate on the Straight Line Method. In consequence ofthe above, depreciation charge for the current year is higher by Rs.38.29 crore and thenet profit is lower by Rs.25.28 crore ( Net of tax provision Rs.13.01 crore).

4. With effect from 17th November,2007 the company acquired 100% stake in Lucky

Minmat Private Limited, a company engaged in mining of Limestone with estimatedreserve of 80 M.T.

5. During the year pursuant to implementation of SAP ERP system certain cost formulasfor inventory valuation have been changed. The impact of these changes is estimated tobe immaterial.

6. Tax expenses for the year ended December 31, 2006 includes a charge of Rs.18.66crore pertaining to prior period.

III. STANDALONE RESULTS

31-12-2007 31-12-2006

AUDITED

Rs.Crore Rs.Crore

SALES /INCOME FROM

OPERATIONS

LESS: EXCISEDUTYRECOVERED

NET SALES /INCOME FROMOPERATIONS

OTHERINCOME

i) Dividend

ii) Gain/(Loss) onforeignexchange

(Net)

iii) Otheritems


7/12

12.38 22.26

3 7135.97 5945.13

4

-6.93 32.29

816.74 677.39

93.31 53.42

352.73 318.02

1194.62 972.66

944.22 818.84

129.17 86.5

305.07 254.25

1565.92 1221.14

5394.85 4434.51

5 23.94 52.03

iv) Profit onsale ofinvestments

TOTALINCOME (1+2)

EXPENDITURE

a)( Increase)

/Decrease instock in tradeand work in

progress

b)Consumptionof Rawmaterials

c) Purchase oftraded Cement& OtherProducts

d) Employeecost

e) Power &Fuel

f) OutwardFreightcharges onCement etc.

g) ExciseDuties (Net)

h)Depreciation

i) OtherExpenditure

TotalExpenditure

INTEREST(NET)


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6

-201.43 -160.91

-11.68 -

7 1930.29 1619.5

8 491.7 387.66

9 1438.59 1231.84

10 187.83 187.48

11 3,964.78 2955.16

EXCEPTIONAL ITEMS

a) Profit onsale of landandundertakings


Profit fromordinaryactivitiesbefore tax

(3) -(4+5+6)

Tax Expenses( includingFringe BenefitTax)

Net Profitfor theperiod (7-8)

Paid-upEquity ShareCapital

( Face valueper shareRs.10 )

ReservesexcludingRevaluationReserves


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12 76.75 66.02

76.45 65.52

13

10,69,92,337 12,14,40,580

57.02% 64.85%

1. Exceptional Items include:

2. During the year the following projects were commissioned:

i. Augmentation of grinding capacity at Tikaria Cement Works by 0.31 M.T.

iii. 9 MW Wind farm in Tamil Nadu & 25 MW TG set at Kymore plant

MW Captive Power Plant at Chanda at a total outlay of Rs.1451 crore.

BasicEarnings perShare

Rs.

Diluted

Earnings perShareRs.

Publicshareholding

Number ofShares

Percentage ofshareholding

Notes:

i. Profit of Rs 201.43 Crore on disposal of certain surplus asset including land atSurajpur, Haryana.

ii. Profit from divestment of subsidiary and associates is on account of wholly ownedsubsidiary, ACC Nihon Castings Limited.( Rs.3.98 crore) and associates Almatis ACCLtd. ( Rs..7.70 crore).

ii. Capacity expansion alongwith Captive Power plant at Lakheri and augmentation ofgrinding capacity at Kymore.

iv. Further, Board has approved the setting up of the additional 7000 TPD clinker linealongwith a new additional 25

3. The Company intends to transfer the Ready Mixed Concrete Business to its whollyowned subsidiary ACC Concrete Limited with effect from 1st January,2008. During theyear this activity resulted loss before tax of (Rs.60.71 crore) and loss after tax of(Rs.40.28 crore) and profit before tax of (Rs.2.66 crore) and profit after tax of (Rs.1.59crore) in previous year.

4. Based on a review and reassessment of the intrinsic machine configuration and

capabilities, plant and machinery items at the Company's grinding units at Tikaria, Sindriand Damodhar which hitherto being depreciated on the basis of " Continuous Process"are now being depreciated at shift rate on Straight Line Method. In consequence of theabove, depreciation charge is higher by Rs.38.29 crore and net profit is lower byRs.25.28 crore ( Net of tax provision Rs.13.01 crore).

5. During the year the Company made an investment in Shiva Cement Limited (SCL) byway of 21.5 million shares at Rs.11 per share which represents 14.7% of SCL equity. TheCompany has also acquired 17.7 million warrants at Rs.2 each which are exercisable upto17th December, 2008 at Rs.11 per share. SCL has a plant in the strategic market ofOrrisa with capacity of 0.13 Million Tonnes. The Company has also an arrangement oftrading of cement with them.


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8. Previous period figures have been regrouped wherever necessary.

IV Segment wise Revenue, Results and Capital Employed

Particulars

Consolidated Standalone

AUDITED AUDITED AUDITED AUDITED

Rs. Crore Rs. Crore Rs. Crore Rs. Crore

1

a 6750.34 5615.03 6750.35 5593.34

b 367.02 300.44 367.02 300.44

c 60.27 84.41

d 0.22 0.38 0.22 0.38

7177.85 6000.26 7117.59 5894.16

Less: 110.42 149.02 110.42 90.68

7067.43 5851.24 7007.17 5803.48

6. During the year pursuant to implementation of SAP ERP system certain cost formulasfor inventory valuation have been changed. The impact of these changes is estimated tobe immaterial.

7. Tax expenses for the year ended December 31, 2006 includes a charge of Rs.18.66crore pertaining to prior period.

9. At the beginning of the year ended December 31, 2007, there were no investor

complaints pending. During the year one hundred ninety complaints were received andone hundred ninety complaints were resolved. No complaints were pending disposal ason December 31, 2007.

YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED

31-12-2007 31-12-2006 31-12-2007 31-12-2006

SegmentRevenue (netsale /

income fromeachsegment)

Cement

Ready MixConcrete

Others

Unallocated

Total

Inter segmentrevenue

Net sales /income fromoperations


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2

a 1889.45 1608.88 1887.6 1594.17

b -60.71 2.66 -60.71 2.66

c 2.95 6.5

1831.69 1618.04 1826.89 1596.83

24.37 54.37 23.94 52.03

91.74 91.12 85.77 86.21

1715.58 1472.55 1717.18 1458.59

201.43 160.91 201.43 160.91

8.42 - 11.68 -

1925.43 1633.46 1930.29 1619.5

3

SegmentResults( Profit) (+)/Loss (-) beforetax andinterest)

Cement

Ready MixConcrete

Others

Total

Less: iInterest

ii OtherUn-allocable

Expenditurenet off

Un-allocableincome

Total ProfitBeforeExceptionalItems & Tax

EXCEPTIONALITEMS

a) Profit onsale of landandundertaking


Total ProfitBefore Tax

CapitalEmployed


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Liabilities)

a 3032.47 2938.39 2974.07 2906.92

b 86.56 70.56 88.2 70.56

c 32.13 45.18 - -

3151.16 3054.13 3062.27 2977.48

639.78 558.42 643.68 558.42

Notes:

MANAGING DIRECTOR

Mumbai - January 31, 2008

(SegmentAssets -Segment

Cement

Ready MixConcrete

Others

Sub-total

Capital workin progress

Capital Employed excludesassets and liabilities notallocable to specificsegment & investments.

1. The Company hasreassessed its operationsand revised the segmentreporting into twosegments- Cement andReady Mixed Concrete.Cement business includesconsultancy contracts forcement plant operations.

2. Previous period figureshave been regroupedwherever necessary.

( Sumit Banerjee )

ACC Financial Results

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