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ACC Financial Results
ACC Financial Results
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ACC LIMITED
Registered Office :
Cement House,
AUDITED
CONSOLIDATED AND
STANDALONE
FINANCIAL RESULTS
FOR THE YEAR
ENDED DECEMBER
31, 2007.
CONSOLIDATED
PROFIT AFTER TAX
FOR 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 SALES
VALUE FOR 2007 UP BY
21 % (STANDALONE UP
BY 21%)
II. CONSOLIDATED
RESULTS
31-12-2007 31-12-2006
AUDITED AUDITED
Rs.Crore Rs.Crore
SALES /
INCOME FROM
1 OPERATIONS 7915.98 6504.46
LESS: EXCISE
DUTY
RECOVERED 848.55 653.22
NET SALES /
INCOME FROM
OPERATIONS 7067.43 5851.24
OTHER
2 INCOME
iv) Profit on
sale of
investments 12.38 22.28
Share of
earnings of
3 Associates 0.18 0.9
TOTAL
INCOME
4 (1+2+3) 7189.43 5984.56
5 EXPENDITURE
a)
( Increase)
/Decrease in
stock in trade
and work in
progress 1.17 34.32
b)
Consumption
of Raw
materials 848.52 687.46
c) Purchase of
traded Cement
& Other
Products 93.31 53.42
d) Employee
cost 356.56 322.53
e) Power &
Fuel 1198.63 979.13
f) Outward
Freight
charges on
Cement etc. 937.9 811.86
g) Excise
Duties (Net) 129.25 86.56
h)
Depreciation 313.02 260.95
i) Other
Expenditure 1570.93 1220.58
Total
Expenditure 5449.29 4456.81
INTEREST
6 (NET) 24.37 54.37
MINORITY
7 INTEREST 0.19 0.83
EXCEPTION
8 AL ITEMS
a) Profit on
sale of land
and
undertakings -201.43 -160.91
b) Profit on
sale of
investments in
subsidiary /
associates -8.42 -
Profit from
ordinary
activities
before tax
(4) -
9 (5+6+7+8) 1925.43 1633.46
Tax Expenses
( including
Fringe Benefit
10 Tax) 498.09 393.86
Net Profit
for the
period (9-
11 10) 1427.34 1239.6
Paid-up
Equity Share
12 Capital 187.83 187.48
( Face value
per share
Rs.10 )
Reserves
excluding
Revaluation
13 Reserves 3974.44 2977.01
Basic
Earnings per
Share
14 Rs. 76.16 66.43
Diluted
Earnings per
Share
Rs. 75.85 65.92
Public
15 shareholding
Number of
Shares 10,69,92,337 12,14,40,580
Percentage of
shareholding 57.02% 64.85%
Notes:
1. The Consolidated financial results are prepared in accordance with the Accounting
Standard (AS) 21"Consolidated Financial Statements" and (AS) 23 " Accounting for
Investments in Associates in Consolidated Financial Statements" issued by the Institute
of Chartered Accountants of India.
2. Exceptional Items include:
i. Profit of Rs 201.43 crore on disposal of certain surplus asset including land at
Surajpur, Haryana.
ii. Profit from divestment of subsidiary and associates is on account of wholly owned
subsidiary, ACC Nihon Castings Limited. ( Rs.2.51 crore) and associates Almatis ACC
Ltd. ( Rs.5.91 crore)
3. 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, Sindri
and 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 of
the above, depreciation charge for the current year is higher by Rs.38.29 crore and the
net 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 estimated
reserve of 80 M.T.
5. During the year pursuant to implementation of SAP ERP system certain cost formulas
for inventory valuation have been changed. The impact of these changes is estimated to
be immaterial.
6. Tax expenses for the year ended December 31, 2006 includes a charge of Rs.18.66
crore pertaining to prior period.
7. Previous period figures have been regrouped wherever necessary.
31-12-2007 31-12-2006
AUDITED AUDITED
Rs.Crore Rs.Crore
SALES /
INCOME FROM
1 OPERATIONS 7848.32 6453.07
LESS: EXCISE
DUTY
RECOVERED 841.15 649.59
NET SALES /
INCOME FROM
OPERATIONS 7007.17 5803.48
OTHER
2 INCOME
i) Dividend 41.03 26
ii) Gain/
(Loss) on
foreign
exchange
(Net) 7.32 1.6
iii) Other
items 68.07 91.79
iv) Profit on
sale of
investments 12.38 22.26
TOTAL
3 INCOME (1+2) 7135.97 5945.13
4 EXPENDITURE
a)
( Increase)
/Decrease in
stock in trade
and work in
progress -6.93 32.29
b)
Consumption
of Raw
materials 816.74 677.39
c) Purchase of
traded Cement
& Other
Products 93.31 53.42
d) Employee
cost 352.73 318.02
e) Power &
Fuel 1194.62 972.66
f) Outward
Freight
charges on
Cement etc. 944.22 818.84
g) Excise
Duties (Net) 129.17 86.5
h)
Depreciation 305.07 254.25
i) Other
Expenditure 1565.92 1221.14
Total
Expenditure 5394.85 4434.51
INTEREST
5 (NET) 23.94 52.03
EXCEPTION
6 AL ITEMS
a) Profit on
sale of land
and
undertakings -201.43 -160.91
b) Profit on
sale of
investments in
subsidiary /
associates -11.68 -
Profit from
ordinary
activities
before tax
(3) -
7 (4+5+6) 1930.29 1619.5
Tax Expenses
( including
Fringe Benefit
8 Tax) 491.7 387.66
Net Profit
for the
9 period (7-8) 1438.59 1231.84
Paid-up
Equity Share
10 Capital 187.83 187.48
( Face value
per share
Rs.10 )
Reserves
excluding
Revaluation
11 Reserves 3,964.78 2955.16
Basic
Earnings per
Share
12 Rs. 76.75 66.02
Diluted
Earnings per
Share
Rs. 76.45 65.52
Public
13 shareholding
Number of
Shares 10,69,92,337 12,14,40,580
Percentage of
shareholding 57.02% 64.85%
Notes: 1. Exceptional Items include:
i. Profit of Rs 201.43 Crore on disposal of certain surplus asset including land at
Surajpur, Haryana.
ii. Profit from divestment of subsidiary and associates is on account of wholly owned
subsidiary, ACC Nihon Castings Limited.( Rs.3.98 crore) and associates Almatis ACC
Ltd. ( Rs..7.70 crore).
2. During the year the following projects were commissioned:
i. Augmentation of grinding capacity at Tikaria Cement Works by 0.31 M.T.
ii. Capacity expansion alongwith Captive Power plant at Lakheri and augmentation of
grinding capacity at Kymore.
iii. 9 MW Wind farm in Tamil Nadu & 25 MW TG set at Kymore plant
iv. Further, Board has approved the setting up of the additional 7000 TPD clinker line
alongwith a new additional 25
MW Captive Power Plant at Chanda at a total outlay of Rs.1451 crore.
3. The Company intends to transfer the Ready Mixed Concrete Business to its wholly
owned subsidiary ACC Concrete Limited with effect from 1st January,2008. During the
year 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.1.59
crore) 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, Sindri
and 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 the
above, depreciation charge is higher by Rs.38.29 crore and net profit is lower by
Rs.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) by
way of 21.5 million shares at Rs.11 per share which represents 14.7% of SCL equity. The
Company has also acquired 17.7 million warrants at Rs.2 each which are exercisable upto
17th December, 2008 at Rs.11 per share. SCL has a plant in the strategic market of
Orrisa with capacity of 0.13 Million Tonnes. The Company has also an arrangement of
trading of cement with them.
6. During the year pursuant to implementation of SAP ERP system certain cost formulas
for inventory valuation have been changed. The impact of these changes is estimated to
be immaterial.
7. Tax expenses for the year ended December 31, 2006 includes a charge of Rs.18.66
crore pertaining to prior period.
8. Previous period figures have been regrouped wherever necessary.
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 and
one hundred ninety complaints were resolved. No complaints were pending disposal as
on December 31, 2007.
Consolidated Standalone
Segment
Revenue (net
sale /
income from
each
1 segment)
Ready Mix
b Concrete 367.02 300.44 367.02 300.44
c Others 60.27 84.41
Inter segment
Less: revenue 110.42 149.02 110.42 90.68
Net sales /
income from
operations 7067.43 5851.24 7007.17 5803.48
Segment
Results
( Profit) (+)/
Loss (-) before
tax and
2 interest)
Ready Mix
b Concrete -60.71 2.66 -60.71 2.66
c Others 2.95 6.5
Total 1831.69 1618.04 1826.89 1596.83
Less: i
Interest 24.37 54.37 23.94 52.03
ii Other
Un-allocable
Expenditure
net off
Un-
allocable
income 91.74 91.12 85.77 86.21
Total Profit
Before
Exceptional
Items & Tax 1715.58 1472.55 1717.18 1458.59
EXCEPTIONAL
ITEMS
a) Profit on
sale of land
and
undertaking 201.43 160.91 201.43 160.91
b) Profit on
sale of
investments in
subsidiary /
associates 8.42 - 11.68 -
Total Profit
Before Tax 1925.43 1633.46 1930.29 1619.5
Capital
3 Employed
(Segment
Assets -
Segment
Liabilities)
Ready Mix
b Concrete 86.56 70.56 88.2 70.56
c Others 32.13 45.18 - -
Sub-total 3151.16 3054.13 3062.27 2977.48
Capital work
in progress 639.78 558.42 643.68 558.42
Capital Employed excludes
assets and liabilities not
allocable to specific
segment & investments.
Notes:
1. The Company has
reassessed its operations
and revised the segment
reporting into two
segments- Cement and
Ready Mixed Concrete.
Cement business includes
consultancy contracts for
cement plant operations.
2. Previous period figures
have been regrouped
wherever necessary.
( Sumit Banerjee )
MANAGING DIRECTOR
Mumbai - January 31, 2008