burnpur cement ltd - national stock exchange of india ltd. · pdf fileburnpur cement ltd 1st...

Stakeholders’ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory

STAKEHOLDERS EMPOWERMENT SERVICES

1 | P A G E

SECTOR: CEMENT REPORTING DATE: 1ST JUNE, 2016

BURNPUR CEMENT LTD. www.burnpurcement.com

Burnpur Cement Ltd 1st June, 2016 TABLE 1 - MARKET DATA (STANDALONE) (As on 31st May, 2016)

NSE Code - BURNPUR NSE Market Price (₹) 9.40 NSE Market Cap. (₹Cr.) 80.18

Sector - Cement Face Value (₹) 10.00 Equity (₹Cr.) 86.12

52-week High/Low (₹) 12.30/7.00 Net worth (₹Cr.) 112.24

Business Group - Indian Private TTM P/E N.A. Traded Volume (Shares) 55,469

Year of Incorporation - 1986 TTM P/BV 0.08 Traded Volume (lacs) 5.21

Source - Capitaline

Corporate Office: COMPANY BACKGROUND

Palashdiha, Panchgachia Road, Burnpur Cement Limited was incorporated on June 19, 1986 as Ashoka Concrete and Allied

Industries Private Limited. The company has started its operation in October 1991 with a

small plant of 30 TPD at Asansol to produce Portland Slag Cement (PSC). The company

name was changed to Burnpur Cement Private Limited on September 18, 2001. The

company was subsequently converted into a public limited company and the name was

changed to Burnpur Cement Limited in November 12, 2001. Presently the plant is

producing 1000 TPD cement and is a major producer in the eastern region.

Burnpur Cement Limited produces and sells cement in India. It offers Portland slag cement.

The company is also involved in the trading of cement and iron. The Company is one of the

few cement manufacturers of Eastern India having its market presence in West Bengal,

Jharkhand and Bihar. The company intends to expand its network in Orissa, Madhya

Pradesh, Uttaranchal, Haryana and Delhi in the near future.

Kanyapur, Asansol,

Burdwan - 713341, West Bengal

Company Website:

www.burnpurcement.com

TABLE 2 - PRICE PERFORMANCE

31st May,

2016

29th May,

2015

30th May,

2014

% Change CAGR for 2

years 2016 vs 2015 2015 vs 2014

Price (₹) 9.40 7.85 10.10 19.75% -22.28% -3.53%

Trading Volume (Shares)

(yearly avg.) 2,33,283 2,57,932 45,847 -9.56% 462.59% -

NSE Market Cap. (in ₹Cr.) 80.96 64.80 76.31 24.94% -15.08% 3.00%

Source - Money Control

http://www.burnpurcement.com/




2 | P A G E



s

TABLE 3 - FINANCIALS

(₹Cr.) 2015 2014 2013 % Change CAGR for 2

years 2015 vs 2014 2014 vs 2013

Net Worth 112.24 104.87 93.74 7.03% 11.87% 9.42%

Current Assets 63.41 52.23 45.25 21.41% 15.43% 18.38%

Non-Current Assets 106.96 104.56 93.82 2.30% 11.45% 6.77%

Total Assets 170.38 156.79 139.07 8.67% 12.74% 10.69%

Investments 85.97 82.85 76.46 3.77% 8.36% 6.04%

Finance Cost 4.54 3.97 2.55 14.36% 55.69% 33.43%

Long Term Liabilities 9.06 11.06 11.56 -18.08% -4.33% -11.47%

Current Liabilities 49.08 40.85 33.78 20.15% 20.93% 20.54%

Turnover 82.32 93.36 83.76 -11.83% 11.46% -0.86%

Profit After Tax (PAT,

₹Cr.) 1.17 2.70 3.17 -56.67% -14.83% -39.25%

EPS (₹) 0.14 0.42 1.00 -65.87% -58.48% -62.36%

Source - Money Control/Annual Report

Discussion as per Company:

During the financial year 2013-2014 gross sale and other income for year ended 31st March 2014 was ₹109.06 Crores as

against ₹105.29 Crore in the previous year. In 2013-14 the Company has produced 191649.30 M.T. against 174348.3 M.T. in

the previous year. The effective capacity utilization was 63.88 against 58.11% in the previous year. Due to increase in finance

cost the profit during the year has affected more compared to previous year.

The project at Patratu has been delayed further due to one of the civil contractor who left the the job in the middle and it

took some time appoint the new civil contractor. However, the grinding unit of the plant is ready and grinding will start after

the connection of power from Damodar Valley Corporation (DVC) is complete. The power connection from DVC is going on

and will complete very shortly. For completion of the clinkerisation unit it will take another 5-6 months.

The gross sale and other income for the financial year ended 31st March 2013 was ₹105.53 Crores as against ₹52.77 Crore for

the previous year. Due to better marketing strategies adopted by the management turnover of the Company has crossed

₹100 Crore.

During the financial year 2012-2013 The gross sale and other income for the financial year ended 31st March 2013 was

₹105.53 Crores as against ₹52.77 Crore for the previous year. Due to better marketing strategies adopted by the management

turnover of the Company has crossed ₹100 Crore.

Due to increase in cost of power & fuel and clinker the profit during the year has affected more compared to previous year.

After completion of Patratu project, which is an integrated plant (Clinkering & Grinding) the cost of clinker will be reduced

than purchase from market.

AUDIT QUALIFICATIONS

Audit Qualifications in last 3 years: The Auditors have not raised any qualifications in the last three years.

Response Comment

Frequency of Qualifications Not Applicable

Have the auditors made any adverse remark in last 3 years? No

Are the material accounts audited by the Principal Auditors? Yes -

Do the financial statements include material unaudited

financial statements? No -




3 | P A G E



TABLE 4: BOARD PROFILE (As on 31st March, 2015)

Regulatory Norms Company

% of Independent Directors on the Board 33% 42.86%

% of Promoter Directors on the Board - 42.86%

Number of Women Directors on the Board At least 1

Classification of Chairman of the Board - Non-Executive Director

Is the post of Chairman and MD/CEO held by the same person? - 0

Average attendance of Directors in the Board meetings (%) - 69.39%

Source - Money Control/Annual Report

Composition of Board: As per Regulation 17(i)(b) of the Listing Regulations, 2015, the Company should have at least 33%

Independent Directors as the Chairman of the Board is a Non-Executive Director. The Company as on 31st March, 2015 has

42.86% of Independent Directors and hence, it meets the regulatory requirements.

Board Diversity: The Company has 7 directors out of which 6 are male and 1 is female. The Company is compliant as per

Clause 17 of the Listing Regulations, 2015 regarding the requirement of at least one-woman director.

Holding of position of MD/ CEO & Chairman by same person: The Company has appointed Mr. Prem Prakash Sharma as the

Chairman of the Company.

TABLE 5 - FINANCIAL RATIOS

Ratios 2015 2014 2013 % Change

2015 vs 2014 2014 vs 2013

Turn

ove

r

Rat

ios

Inventory Turnover 4.47 4.02 5.97 11.18% -32.59%

Debtors Turnover 2.34 5.46 4.66 -57.12% 17.33%

Fixed asset Turnover 0.77 0.89 0.89 -13.80% 0.01%

Current Asset Turnover 1.30 1.79 1.85 -27.37% -3.43%

Ret

urn

Rat

ios Operating Profit Margin 2.09% 4.05% 5.66% -48.39% -28.45%

Net Profit Margin 1.42% 2.89% 3.78% -50.86% -23.58%

Return on Assets (ROA) 0.69% 1.72% 2.28% -60.12% -24.45%

Return on Equity (ROE) 1.04% 2.57% 3.38% -59.51% -23.87%

Return on Capital Employed (ROCE) 5.77% 8.06% 8.14% -28.46% -0.96%

Liq

uid

ity

Rat

ios

Current Ratio 1.29 1.28 1.34 1.05% -4.55%

Quick Ratio 0.92 0.71 0.92 29.05% -23.11%

Cash Ratio 0.20 0.29 0.39 -31.20% -25.37%

Working Capital Turnover ratio 5.74 8.20 7.30 -29.98% 12.34%

Solv

ency

Rat

ios Debt to equity ratio 0.23 0.30 0.28 -21.63% 4.32%

Interest Coverage Ratio 1.38 1.95 2.86 -29.37% -31.72%

Trad

ing

Rat

ios

Market Cap / Sales 1.07 0.95 1.05 13.41% -10.28%

Market Cap/ Net Worth 0.79 0.84 0.94 -6.57% -10.61%

Market Cap/PAT 75.45 32.70 27.85 130.77% 17.41%

Market Cap/EBITDA 31.62 21.52 17.19 46.93% 25.19%

Trading Volume (shares) (avg. of 1 year) 2,21,278 2,54,966 44,802 -13.21% 469.10%

Trading Volume (shares) (high in 1 year) 3,81,5,034 3,44,9,163 7,22,570 10.61% 377.35%

Trading Volume (shares) (low in 1 year) 7,952 7,367 29 7.94% 25,303.45%

Ratio - High/low trading volume 479.76 468.19 24,916.21 2.47% -98.12%

Ratio - High/average trading volume 17.24 13.53 16.13 27.45% -16.12%

Source - Money Control


http://www.sebi.gov.in/cms/sebi_data/attachdocs/1441284401427.pdf



4 | P A G E



TABLE 6 (A): OWNERSHIP & MANAGEMENT RISKS

Dec' 2015 Dec' 2014 Dec' 2013 Comments

Shar

eho

ldin

g

Promoter shareholding ** 27.96% 31.03% 32.46% The shareholding pf promoters decreased

from 32.46% to 27.96% during the period

from 31st December, 2013 to 31st

December, 2015. The shareholding of

public others increased from 67.54% to

72.04% during the same period. The

promoters have pledged 90.54% of their

shareholding.

Public - Institutional

shareholding 0.00% 0.00% 0.00%

Public - Others shareholding 72.04% 68.97% 67.54%

Non Promoter Non Public

Shareholding 0.00% 0.00% 0.00%

TABLE 6 (B): OWNERSHIP & MANAGEMENT RISKS

Market Activity of Promoters

The promoters have sold their shares in secondary market as disclosed in the Annual Report of 2015. Further, promoters were issued equity shares on conversion warrants in last three years. Details of which are given below.

Preferential issue to promoters No

Preferential issue to others The Non-Promoter shareholders were issued equity shares on conversion of warrants. Detail of such issue are shown below:

GDRs issued by the Company No

Issue of ESOPs/Issue of shares other than Preferential allotment

No

Source - Annual Report

Issue of equity shares on conversion of warrants/Issue of warrants:

AR 2014-15: The company has converted 1,74,15,000 during the year out of which 1,04,15,000 Convertible warrants allotted to Non promoters during the year 2012-13 and 7000000 convertible warrants allotted to Non Promoters during the year 2013-14.

AR 2013-14: The company has converted 21,35,000 during the year out of 1,25,50,000 Convertible warrants allotted to Promoters and Non promoters during the year 2012-13. Also company has issued 70,00,000 convertible warrants to non-promoters during the year.

AR 2012-13: The company has issued 1,25,50,000 Convertible warrants to Promoters and Non promoters during the year 2012-13. and 2900000 warrants have been converted into equity which was earlier issued.




5 | P A G E



Glossary

Equity: The equity shares capital of the Company

Net Worth: The amount by which the Assets exceeds the liabilities excluding shareholders’ funds of the Company

Turnover: The revenue earned from the operations of the Company

EPS: Earning Per Share is net profit earned by the Company per share

𝐸𝑃𝑆 =Profit After Tax

Number of outstanding shares

P/E ratio: It is the ratio of the Company’s share price to earnings per share of the Company

𝑃/𝐸 𝑟𝑎𝑡𝑖𝑜 =Price of each share

Earnings per share

Current Assets: Cash and other assets that are expected to be converted to cash in one year

Fixed Assets: assets which are purchased for long-term use and are not likely to be converted quickly into cash, such as land,

buildings, and equipment

Total Assets: Current Assets + Fixed Assets

Investments: An investment is an asset or item that is purchased with the hope that it will generate income or appreciate in the

future.

Finance Cost: The Financing Cost (FC), also known as the Cost of Finances (COF), is the cost and interest and other charges

incurred during the year in relation to borrowed money.

Long Term Liabilities: Long-term liabilities are liabilities with a maturity period of over one year.

Current Liabilities: A company's debts or obligations that are due within one year.

Inventory Turnover ratio: Inventory Turnover is a ratio showing how many times a company's inventory is sold and replaced over

a period.

𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover

Inventory

Debtors Turnover: Accounts receivable turnover is an efficiency ratio or activity ratio that measures how many times a business

can turn its accounts receivable into cash during a period

𝐷𝑒𝑏𝑡𝑜𝑟𝑠 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover

Accounts recievables

Fixed Asset Turnover: The fixed-asset turnover ratio is a financial ratio of net sales to fixed assets

𝐹𝑖𝑥𝑒𝑑 𝐴𝑠𝑠𝑒𝑡 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover

Fixed Assets

Current Asset Turnover: The current-asset turnover ratio is a financial ratio of net sales to fixed assets

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover

Current Assets




6 | P A G E



Operating Profit Margin: Operating margin is a measurement of what proportion of a Company’s revenue is left over after

paying for variable costs of production such as wages, raw materials etc. It can be calculated by dividing a Company’s operating

income (also known as “operating profit”) during a given period by its sales during the same period.

𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑃𝑟𝑜𝑓𝑖𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 =Operating profit

Sales Turnover

Net Profit Margin: Net profit margin is the percentage of revenue left after all expenses have been deducted from sales

𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 =Net profit

Sales Turnover

Return on Assets: ROA tells you what earnings were generated from invested capital (assets)

𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐴𝑠𝑠𝑒𝑡𝑠 =Net profit

Total Assets

Return on equity/net worth: return on equity (ROE) is the amount of net income returned as a percentage of shareholders’

equity.

𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐸𝑞𝑢𝑖𝑡𝑦 =Net profit

Net worth

Return on Capital Employed: Return on capital employed (ROCE) is a financial ratio that measures a company's profitability

and the efficiency with which its capital is employed.

𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑑 =Net profit

Total Debt + Equity share capital

Current ratio: The current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts

over the next 12 months. It compares a firm's current assets to its current liabilities.

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑟𝑎𝑡𝑖𝑜 =Current Assets

Current Liabilities

Quick ratio: The quick ratio is a measure of how well a Company can meet its short term financial liabilities.

𝑄𝑢𝑖𝑐𝑘 𝑟𝑎𝑡𝑖𝑜 =Current Assets − Inventories

Current Liabilities

Cash ratio: The ratio of the liquid assets of a Company to its current liabilities.

𝑄𝑢𝑖𝑐𝑘 𝑟𝑎𝑡𝑖𝑜 =Current Assets − Inventories − Account Recievables

Current Liabilities

Working Capital Turnover ratio: The working capital turnover ratio is also referred to as net sales to working capital. It indicates a

Company's effectiveness in using its working capital.

𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =𝑆𝑎𝑙𝑒𝑠 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟

Current Assets − Current Liabilities

Debt to Equity ratio: The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion of

shareholders' equity and debt used to finance a company's assets.

𝐷𝑒𝑏𝑡 𝑡𝑜 𝐸𝑞𝑢𝑖𝑡𝑦 𝑟𝑎𝑡𝑖𝑜 =𝑆ℎ𝑜𝑟𝑡 𝑇𝑒𝑟𝑚 𝐷𝑒𝑏𝑡 + 𝐿𝑜𝑛𝑔 𝑇𝑒𝑟𝑚 𝐷𝑒𝑏𝑡

𝑁𝑒𝑡 𝑊𝑜𝑟𝑡ℎ

Interest Coverage ratio: The Interest coverage ratio is a debt ratio and profitability ratio used to determine how easily a

Company can pay interest on outstanding debt.

𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐶𝑜𝑣𝑒𝑟𝑎𝑔𝑒 𝑅𝑎𝑡𝑖𝑜 =𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝐵𝑒𝑓𝑜𝑟𝑒 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑎𝑛𝑑 𝑇𝑎𝑥

𝐹𝑖𝑛𝑎𝑛𝑐𝑒 𝐶𝑜𝑠𝑡


http://www.investopedia.com/terms/i/invested-capital.asp

http://www.investopedia.com/articles/stocks/05/04405.asp



7 | P A G E



Market Cap/Sales ratio: Market Cap/sales ratio, Price–sales ratio, P/S ratio, or PSR, is a valuation metric for stocks. It is calculated

by dividing the company's market cap by the revenue in the most recent year; or, equivalently, divide the per-share stock price by

the per-share revenue.

𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝑆𝑎𝑙𝑒𝑠 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝

𝑆𝑎𝑙𝑒𝑠 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟

Market Cap/ Net Worth ratio: It is a valuation ratio calculated by dividing Company’s market cap to net worth.

𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝑁𝑒𝑡𝑤𝑜𝑟𝑡ℎ 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝

𝑁𝑒𝑡𝑤𝑜𝑟𝑡ℎ

Market Cap/ PAT ratio: It is a valuation ratio calculated by dividing Company’s market cap to net profit.

𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝑃𝐴𝑇 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝

𝑛𝑒𝑡 𝑝𝑟𝑜𝑓𝑖𝑡

Market Cap/ EBITDA ratio: It is a valuation ratio calculated by dividing Company’s market cap to EBITDA.

𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝐸𝐵𝐼𝑇𝐷𝐴 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝

𝐸𝐵𝐼𝑇𝐷𝐴

Trading Volume (shares) (avg. of 1 year): Average number of shares/day traded in 1 year

Trading volume (shares) (high in 1 year): Highest number of shares/day traded in 1 year

Trading volume (shares) (minimum in 1 year): Lowest number of shares traded on any one day in 1 year


https://en.wikipedia.org/wiki/Stock

https://en.wikipedia.org/wiki/Market_cap

https://en.wikipedia.org/wiki/Stock



8 | P A G E



DISCLAIMER

Sources Company Information

Only publicly available data has been used while making the factsheet. Our

data sources include: BSE, NSE, SEBI, Capitaline, Moneycontrol, Businessweek,

Reuters, Annual Reports, IPO Documents and Company Website.

Analyst Certification

The analysts involved in development of this factsheet certify that no part of

any of the research analyst’s compensation was, is, or will be directly or

indirectly related to the contents of this factsheet.

Disclaimer

While SES has made every effort and has exercised due skill, care and diligence in compiling this factsheet based on publicly available information, it neither guarantees its accuracy, completeness or usefulness, nor assumes any liability whatsoever for any consequence from its use. This factsheet does not have any approval, express or implied, from any authority, nor is it required to have such approval. The users are strongly advised to exercise due diligence while using this factsheet.

This factsheet in no manner constitutes an offer, solicitation or advice to buy or sell securities, nor solicits votes or proxies on behalf of any party. SES, which is a not-for-profit Initiative or its staff, has no financial interest in the companies covered in this factsheet except what is disclosed on its website. The factsheet is released in India and SES has ensured that it is in accordance with Indian laws. Person resident outside India shall ensure that laws in their country are not violated while using this factsheet; SES shall not be responsible for any such violation.

All disputes subject to jurisdiction of High Court of Bombay, Mumbai.

SEBI Reg. No. INH000000016

This factsheet or any portion hereof may not

be reprinted, sold, reproduced or

redistributed without the written consent of

Stakeholders Empowerment Services

Contact Information

Stakeholders Empowerment Services

A 202, Muktangan,

Upper Govind Nagar,

Malad East,

Mumbai – 400 097

Tel +91 22 4022 0322

[email protected]

[email protected]

www.sesgovernance.com.

Research Analyst: Kirti Dhokiya


mailto:[email protected]

mailto:[email protected]

http://www.sesgovernance.com/