ACC Limited
(formerly The Associated Cement Companies Limited)

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ACC LIMITED

Registered Office : Cement House,
121, Maharshi Karve Road, Mumbai - 400 020

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%)
  • FINAL DIVIDEND 100 % - TOTAL DIVIDEND 200 % INCLUDING INTERIM DIVIDEND OF 100%.

I. The audit committee have reviewed and Board of Directors of the company have approved the audited Consolidated and Standalone
accounts for the year 2007 ( January- December) at its meeting held on January 31,2008 and the text of this statement was also taken on record.

II. CONSOLIDATED RESULTS
   
YEAR ENDED
YEAR ENDED
   
 31-12-2007
 31-12-2006
   
 AUDITED
AUDITED
   
 Rs.Crore
 Rs.Crore
1
  SALES / INCOME FROM  OPERATIONS
7915.98
6504.46
   LESS: EXCISE DUTY RECOVERED
848.55
653.22
   NET SALES / INCOME FROM OPERATIONS
7067.43
5851.24
       
2  OTHER INCOME    
    i) Dividend 35.43 20.50
    ii) Gain/(Loss) on foreign exchange      (Net) 7.32 1.95
   iii) Other items 66.69 87.69
   iv) Profit on sale of investments 12.38 22.28
       
3  Share of earnings of Associates 0.18 0.90
       
4  TOTAL INCOME (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. 937.90 811.86
   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
       
6  INTEREST  (NET) 24.37 54.37
       
7  MINORITY INTEREST 0.19 0.83
       
8  EXCEPTIONAL ITEMS
  a) Profit on sale of land and undertakings
(201.43)
(160.91)
  b) Profit on sale of investments in subsidiary / associates
(8.42)
-
       
9  Profit from ordinary activities before tax (4) - (5+6+7+8)
1925.43
1633.46
       
10  Tax Expenses ( including Fringe Benefit Tax)
498.09
393.86
   
11  Net Profit for the period (9-10)
1427.34
1239.60
   
12 Paid-up Equity Share Capital
187.83
187.48
  ( Face value per share Rs.10 )    
       
13  Reserves excluding Revaluation Reserves
3974.44
2977.01
   
 
14  Basic Earnings per Share                  Rs.
76.16
66.43
   Diluted Earnings per Share               Rs.
75.85
65.92
       
15  Public 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:
    1. Profit of Rs 201.43 crore on disposal of certain surplus asset including land at Surajpur, Haryana.
    2. 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.

 

III. STANDALONE RESULTS

   
YEAR ENDED
YEAR ENDED
   
 31-12-2007
 31-12-2006
   
 AUDITED
AUDITED
   
 Rs.Crore
 Rs.Crore
1
  SALES / INCOME FROM  OPERATIONS
7848.32
6453.07
   LESS: EXCISE DUTY RECOVERED
841.15
649.59
   NET SALES / INCOME FROM OPERATIONS
7007.17
5803.48
       
2  OTHER INCOME    
    i) Dividend 41.03 26.00
    ii) Gain/(Loss) on foreign exchange      (Net) 7.32 1.60
   iii) Other items 68.07 91.79
   iv) Profit on sale of investments 12.38 22.26
       
3  TOTAL 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 86.50
   h) Depreciation 305.07 254.25
    i) Other Expenditure 1565.92 1221.14
   Total Expenditure 5394.85 4434.51
       
5  INTEREST  (NET) 23.94 52.03
       
6  EXCEPTIONAL ITEMS
  a) Profit on sale of land and undertakings
(201.43)
(160.91)
  b) Profit on sale of investments in subsidiary / associates
(11.68)
-
       
7  Profit from ordinary activities before tax (3) - (4+5+6)
1930.29
1619.50
       
8  Tax Expenses ( including Fringe Benefit Tax)
491.70
387.66
   
9  Net Profit for the period (7-8)
1438.59
1231.84
   
10 Paid-up Equity Share Capital
187.83
187.48
  ( Face value per share Rs.10 )    
       
11  Reserves excluding Revaluation Reserves
3,964.78
2955.16
   
 
12  Basic Earnings per Share                  Rs.
76.75
66.02
   Diluted Earnings per Share               Rs.
76.45
65.52
       
13  Public shareholding    
   Number of Shares
10,69,92,337
12,14,40,580
   Percentage of shareholding 
57.02%
64.85%
       

 Notes: 
  1. Exceptional Items include:
    1. Profit of Rs 201.43 Crore on disposal of certain surplus asset including land at Surajpur, Haryana.
    2. 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:
    1. Augmentation of grinding capacity at Tikaria Cement Works by 0.31 M.T.
    2. Capacity expansion alongwith Captive Power plant at Lakheri and augmentation of grinding capacity at Kymore.
    3. 9 MW Wind farm in Tamil Nadu & 25 MW TG set at Kymore plant
    4. 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.

 


IV Segment wise Revenue, Results and Capital Employed

Particulars
Consolidated
Standalone
YEAR ENDED
YEAR ENDED
YEAR ENDED
YEAR ENDED
 31-12-2007
 31-12-2006
 31-12-2007
 31-12-2006
AUDITED
AUDITED
AUDITED
AUDITED
Rs. Crore
Rs. Crore
Rs. Crore
Rs. Crore
   
 
 
 
 
1  Segment Revenue (net sale / income from each segment)
 
 
 
 
           
a
  Cement 6750.34 5615.03 6750.35 5593.34
b
  Ready Mix Concrete
367.02
300.44
367.02
300.44
c
  Others
60.27
84.41
d
  Unallocated
0.22
0.38
0.22
0.38
   Total
7177.85
6000.26
7117.59
5894.16
           
Less: Inter segment revenue
110.42
149.02
110.42
90.68
           
  Net sales / income from operations
7067.43
5851.24
7007.17
5803.48
           
2  Segment Results ( Profit) (+)/ Loss (-) before tax and interest)        
           
a
  Cement 1889.45 1608.88 1887.60 1594.17
b
  Ready Mix Concrete (60.71) 2.66 (60.71) 2.66
c
  Others 2.95 6.50    
   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
1619.50
           
3  Capital Employed        
   (Segment Assets - Segment  
  Liabilities)        
           
a
  Cement 3032.47 2938.39 2974.07 2906.92
b
  Ready Mix Concrete
86.56
70.56
88.20
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