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19%
Power & Fuel 21%
13%
Outward Freight 14% 5%
Personnel Expenses 4%
6%
Depreciation 5%
19%
Others 20%
29%
Profit before Tax 19%
2010 2009
1. NET SALES:
Figures in ` Crore
Net sales decreased by 3.86% during current year over previous year due to reduction in cement sales volumes by
1.12% which can be seen from the below mentioned table. The price per ton of cement has increased marginally
by ` 26.51 per ton as compared to previous year.
Financial Analysis
2. OT
OTHH ER INCOME:
INCO
Figures in ` Crore
Other Operating income has increased by 57.88% as it includes ` 64.45 Crore arising due to a write back of
provisions made in earlier years in relation to claims of Gagal Sales Tax Subsidy, such provision is considered to be
no longer required pursuant to a decision of the Supreme Court in the matter of Transport Subsidy delivered
during the year.
Other income is increased by 28.36% as compared to previous year, primarily on account of increase in dividend
income from mutual funds.
3. PU
PURRCHASE OF TR
HASE ADI
TRADI NG CEMENT
ADING CEMENT::
Figures in ` Crore
Purchase of trading cement has increased by 26.27% due to increase in quantity by 25% from 0.24 to 0.30 million
tons.
4. RAW MA
RAW TER
MAT IAL
ERIALS CONSU
IALS MED:
CONSUMED:
Figures in ` Crore
Consumption of raw materials has increased by 25.99% over the previous year mainly due to following:-
O Average cost of slag has increased by ` 375.39 per ton.
O Purchased clinker has gone up by 0.38 million tons.
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5. PACKI
PAC NG MA
KING TER
MAT IAL
ERIALS CONSU
IALS MED:
CONSUMED:
Figures in ` Crore
Consumption of packing material has increased by 12.50% mainly due to increase in the price of bags consumed
for dispatch of cement.
6. POWER AN
POWER ANDD FU EL:
FUEL:
Figures in ` Crore
Power and fuel cost has marginally increased by 3.83%. By prudent sourcing we were able to bring the fuel costs
under control both imported and coal. The increase in purchased power tariff led to increase in costs.
7. REPAI
REPAI
AIRRS:
Figures in ` Crore
8. ROYAL
ROY TY
TY::
ALTY
Figures in ` Crore
Royalty paid on limestone has increased by 18.50% since the rate of royalty on limestone had been increased from
` 45 to ` 63 per ton in the previous year w.e.f. August 13, 2009.
9. PERSON N EL EXPENSES:
SONN
PERSON
Figures in ` Crore
Financial Analysis
10. LOADI
LOADI NG, TR
ADING, ANSP
TRANSP OR
ANSPORTATION AN
ORT ANDDOTH ER C
OT HAR
CHAR GES:
HARGES:
Figures in ` Crore
Cost of Loading, Transportation and other charges has increased by 9.74% as compared to previous year due to
increase in Clearing and forwarding charges.
11. DISCOU
DISCOU NT
NT,, REB
OUNT ATES AN
REBA ANDD ALLOWANC
ALLO ES:
ANCES:
Figures in ` Crore
The cost of Discount, Rebates and allowances has been decreased by 5.63% on account of decrease in sales
volumes.
12. RATES AN
RAT ANDD TAXES
Figures in ` Crore
During the current year, there is marginal decrease in rates and taxes by 4.19% as compared to previous year.
13. ADVER
ADVERTISEMENT
VERT ISEMENT::
Figures in ` Crore
Advertisement expenditure has increased by 29.51% as compared to previous year. During the current year, the
Company stepped up its advertising spending to improve its brand visibility.
14. OUTW
OUTW AR
TWAR
ARDD FR EIGHT CHAR
FREIGHT GES ON CEMENT ET
CHARGES C:
ETC:
Figures in ` Crore
Freight charge has marginally increased by 1.51%. During the current year, there is increase in average freight cost
by 9.37% which is partially offset by decrease in sales volume.
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15. OT
OTHH ER EXPENSES:
Figures in ` Crore
a) Excise Duties (Net):- There is increase in excise duty charges during the current year by 36.23%, due to increase
in excise duty rate on captive consumption of clinker at exempted units from ` 300 per ton to ` 375 per ton.
b) Miscellaneous Expenses: - Miscellaneous expenses has gone up by ` 37.13 crore as compared to previous year
due to loss on sale / discarding of assets at various locations.
c) Provision for Bad and Doubtful debts: - During the current year, there is decrease in provision for bad and
doubtful debts by ` 25.47 crore as in the previous year provision was made of ` 29 crore in respect of sales tax
incentive available under a state government policy in respect of one of its cement plants.
16. DEPR EC
DEPREC IA
ECIA TION AN
IAT ANDD AMOR
AMOR TIS
ORT ATION:
ISA
Figures in ` Crore
There is increase in depreciation on account of asset capitalization of ` 1,333.67 Crore as compared to ` 1,005.71
Crore in the previous year.
During the current year, there is commissioning of Bargarh capacity expansion, Wadi capacity expansion, installation
of grinding units at Kudithini and Thondebhavi and other capitalization.
17. INTER
INTER ES
EREST EXPENSES:
EST
Figures in ` Crore
Financial Analysis
Net Fixed assets increased by 22.22% as compared to previous year mainly due to commissioning of Bargarh
expansion / modernization project, Wadi capacity expansion, captive power plants at Chanda and Bargarh, grinding
units at Kudithini and Thondebhavi and other capitalizations.
Capital work in progress decreased by 27.52% as compared to previous year mainly due to capitalization of projects.
19. INVESTMENT
INVEST S:
MENTS:
Figures in ` Crore
20. INVENTOR
ORII ES:
INVENTOR
Figures in ` Crore
21. SU
SUNN DRY DEB
DRY TOR
DEBT S:
ORS:
Figures in ` Crore
Sundry Debtor has decreased by 12.48% as compared to previous year. During the current year, the Company has
received ` 45.19 from state government on account of Transport subsidy claim from director of Industries Simla.
The average collection period outstanding for cement customer third party sales as on December 31, 2010 is 4.37
days as compared to 2.95 days as on December 31, 2009.
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22. OT
OTHH ER CU
CURR R ENT ASSETS:
ASSETS:
Figures in ` Crore
During the current year, the other current assets have gone up as compared to previous year due to increase in
accrued interest on investment. Further there is increase in asset held for disposal at various locations.
23. LOANS AN
LOANS ANDD ADVANC
ADV ES:
ANCES:
Figures in ` Crore
Loans and advances increased by 1.52 % as compared to previous year due to following:-
O Increase in advances and deposits on account of ` 57.45 Crore pertaining to sales tax incentive scheme at one
of the location.
O Decrease in balance with excise, customs ports & other authorities by ` 77.10 crore on account of utilization of
cenvat credit on capital items of capex projects, as the company has registered itself under the Large Tax Payer
Unit (LTU) w.e.f October 1, 2009.
24. CU
CURR R ENT LIAB LITII ES:
LIABII LIT
Figures in ` Crore
25. PR
PROOVISIONS:
Figures in ` Crore
Financial Analysis
26. LOAN FU
LOAN FUNN DS:
Figures in ` Crore
There is decrease in secured loans primarily on account of repayment of rupee term loan of ` 50 crore during the
current year.
There is marginal decrease in unsecured loan of ` 3.03 on account of repayment as compared to previous year.
27. CASH FL
CASH OW:
FLO
Figures in ` Crore
Net cash flow from operating activities 1,950.72 2,397.08 (446.36) -18.62%
The net cash from operating activities is decreased by ` 446.36 Crore due to following:-
O Lower operating EBITDA during the current year.
O Marginal decrease in net working capital.
O Decrease in Direct taxes paid (net) during the current year.
Figures in ` Crore
Net cash flow from investing activities 802.25 1,504.94 (702.69) -46.69%
During the current year, fund used in investing activities has decreased by ` 702.69 Crores due to following:
Net cash flow from financing activities 636.73 454.58 182.15 40.07%
The net cash from financing activities is increased by ` 182.15 Crore due to following:
O Higher payment of dividend and dividend distribution tax as compaired to previous year.
O No fund raised during the current year while ` 300 Crores was raised in previous year through issue of
debentures.
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ECONO
ECONO MIC VAL
ONOMIC U E ADDED [E
ALU VA] SST
[EV TATEMENT
` Crore
EVA
Net operating profit after taxes 1,120 1,607 1,213 1,439 1,232
Weighted Average Cost of Capital (%) 11.47 10.95 12.20 11.92 10.83
EVA / Aver
Av age C
erage apital Emplo
Capital Employyed (%) 4.21 14.40 10.82 19.96 21.02
En terprise Value
Enterprise
Less: Cash and Cash Equivalents 2,388 1,876 1,438 1,489 1,080