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

    STAKEHOLDERS EMPOWERMENT SERVICES

    1 | P A G E

    SECTOR: CEMENT REPORTING DATE: 30TH NOVEMBER, 2017

    ANDHRA CEMENTS LTD. www.andhracements.com

    Andhra Cements Ltd. NSE Code - ANDHRACEMT TABLE 1 - MARKET DATA (STANDALONE) (AS ON 22ND NOVEMBER, 2017)

    Sector - Cement NSE Market Price (`) 12.60 NSE Market Cap. (₹ Cr.) 373.36

    Face Value (`) 10.00 Equity (` Cr.) 293.52

    Business Group - Duncans Goenka 52 week High/Low (₹) 15.90/6.40 Net worth (₹ Cr.)* -67.29

    Year of Incorporation - 1936 TTM P/E (TTM) N.A. Traded Volume (Shares) 8,97,416

    TTM P/BV N.A. Traded Volume (lacs) 113.07

    Registered Office - Source - Capitaline, TTM - Trailing Twelve Months, N.A. - Not Applicable,* As on 30th Sep’ 2017

    Durga Cement Works, COMPANY BACKGROUND

    Sri Durgapuram Dachepalli, The Company is engaged in the manufacture and sale of cement, including Ordinary

    Portland Cement, Portland Pozolana Cement, Portland Slag Cement and Ground

    Granulated Blast Slag. The Company is engaged in the business of cement and cement-

    related products. The Company's plants include Durga Cement Works (DCM), which is

    located at Guntur, Andhra Pradesh, and Visakha Cement Works (VCM), which is located at

    Visakhapatnam, Andhra Pradesh. In the domestic market, the Company operates through

    a network of dealers and agents for sale of its products. The Company's markets include

    Andhra Pradesh, Tamil Nadu, Orissa, Karnataka and other nearby states. The Company's

    holding company is Jaypee Development Corporation Limited. The Company is a part of

    the Jaypee Group.

    Guntur - 522 414, Andhra Pradesh

    Company Website:

    www.andhracements.com

    Revenue and Profit Performance

    The revenue of the Company increased from ₹101.08 crores to

    ₹121.68 crores from quarter ending Sep’16 to quarter ending

    Sep’17. The Company made a profit of ₹17.57 crores in quarter

    ending Sep’17 vis-a-vis making a loss of ₹20.26 crores in

    quarter ending Sep’16.

    Source: Moneycontrol

    Performance vis-à-vis Market

    TABLE 2- Returns

    1-m 3-m 6-m 12-m

    Andhra Cements Ltd 5.88% 25.40% 35.48% 60.51%

    Nifty 1.32% 4.15% 7.79% 25.75%

    Source - Capitaline/NSE

    0.80

    1.10

    1.40

    1.70

    2.00

    2.30

    Nov 16 Jan 17 Mar 17 May 17 Jul 17 Sep 17

    Andhra Cements Ltd NIFTY

    121.68 88.39 101.08

    17.57

    -37.46 -20.26

    -50

    0

    50

    100

    150

    Sep'17 Mar'17 Sep'16

    Quarterly revenue and Profit (₹ CRORE)

    Revenue Profit

    http://www.andhracements.com/ http://www.andhracements.com/

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

    STAKEHOLDERS EMPOWERMENT SERVICES

    2 | P A G E

    SECTOR: CEMENT REPORTING DATE: 30TH NOVEMBER, 2017

    ANDHRA CEMENTS LTD. www.andhracements.com

    TABLE 3 - FINANCIALS

    (₹ Cr.) Sep’17 Mar’17 Sep’16 % Change

    Sep ’17 vs Mar’17 Mar’17 vs Sep’16

    Net Worth -67.29 -64.73 36.01 N.A. -279.76%

    Current Assets 167.95 125.12 153.53 34.23% -18.50%

    Non-Current Assets 1,077.57 1,123.06 1,163.28 -4.05% -3.46%

    Total Assets 1,245.52 1,248.18 1,316.80 -0.21% -5.21%

    Investments 0.01 0.01 0.01 0.00% 0.00%

    Finance Cost 34.06 26.76 26.12 27.28% 2.45%

    Long Term Liabilities 907.29 893.70 885.82 1.52% 0.89%

    Current Liabilities 405.52 419.21 394.97 -3.27% 6.14%

    Turnover 121.68 88.39 100.52 37.66% -12.07%

    Profit After Tax 17.57 -37.46 -20.26 N.A. N.A.

    EPS (₹) 0.59 -1.28 -0.69 N.A. N.A.

    Source - Money Control/Stock exchange filing

    AUDIT QUALIFICATIONS

    Audit Qualifications in last 3 years: There are no qualifications, reservations or adverse remarks made by Statutory Auditors, in

    their report for the financial year ended 31st March, 2017, 31st March, 2016 & 31st March, 2015.

    Response Comment

    Frequency of Qualifications NA

    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 -

    TABLE 4: BOARD PROFILE (AS PER ANNUAL REPORT - FY 2016-17)

    Regulatory Norms Company

    % of Independent Directors on the Board 33.00% 36.36%

    % of Promoter Directors on the Board - 0.00%

    Number of Women Directors on the Board At least 1 1

    Classification of Chairman of the Board - Independent Director

    Is the post of Chairman and MD/CEO held by the same person? - No

    Average attendance of Directors in the Board meetings (%) - 81.82%

    Composition of Board: As per Regulation 17(1)(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,

    2015 "Listing Regulations, 2015", the Company should have at least 33% Independent Directors as the Chairman of the Board is

    an Independent Director. The Company has 36.36% of Independent Directors and hence, it meets the regulatory requirements.

    Board Diversity: The Company has 11 directors out of which 10 are male and 1 is female.

    http://www.andhracements.com/

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

    STAKEHOLDERS EMPOWERMENT SERVICES

    3 | P A G E

    SECTOR: CEMENT REPORTING DATE: 30TH NOVEMBER, 2017

    ANDHRA CEMENTS LTD. www.andhracements.com

    TABLE 5 - FINANCIAL RATIOS

    Ratios Sep’17 Mar’17 Sep’16

    % Change

    Sep ’17 vs

    Mar’17

    Mar’17 vs

    Sep’16

    Tu rn

    o ve

    r

    R at

    io s

    Inventory Turnover 3.00 3.06 3.33 -2.11% -7.92%

    Debtors Turnover 3.30 3.26 2.56 1.33% 27.44%

    Fixed asset Turnover 0.11 0.08 0.09 43.47% -8.92%

    Current Asset Turnover 0.72 0.71 0.65 2.56% 7.90%

    R et

    u rn

    R at

    io s Operating Profit Margin 17.64% -2.12% 15.08% N.A. -114.03%

    Net Profit Margin 14.44% -42.38% -20.16% N.A. N.A.

    Return on Assets (ROA) 1.41% N.A. N.A. N.A. N.A.

    Return on Equity (ROE) -26.11% N.A. N.A. N.A. N.A.

    Return on Capital Employed (ROCE) 2.09% N.A. N.A. N.A. N.A.

    Li q

    u id

    it y

    R at

    io s

    Current Ratio 0.41 0.30 0.39 38.76% -23.22%

    Quick Ratio 0.31 0.23 0.31 36.78% -26.45%

    Cash Ratio 0.22 0.16 0.21 35.34% -22.46%

    Working Capital Turnover ratio -0.07 N.A. N.A. N.A. N.A.

    So lv

    en cy

    R at

    io s Debt to equity ratio N.A. N.A. 25.51 N.A. N.A.

    Interest Coverage Ratio 0.63 N.A. 0.58 N.A. N.A.

    Tr ad

    in g

    R at

    io s

    Market Cap / Sales 2.75 2.99 2.28 -7.99% 31.22%

    Market Cap/ Net Worth N.A. N.A. 6.36 N.A. N.A.

    Market Cap/PAT 19.04 N.A. N.A. N.A. N.A.

    Market Cap/EBITDA 15.59 N.A. 15.10 N.A. N.A.

    Source - Money Control/Stock exchange filing

    TABLE 6 - TRADING VOLUME

    Particulars Sep’17 Mar’17 Sep’16

    % Change

    Sep ’17 vs

    Mar’17

    Mar’17 vs

    Sep’16

    Trading Volume (shares) (avg. of 1 qtr) 8,21,825 5,40,768 3,37,273 51.97% 60.34%

    Trading Volume (shares) (high in 1 qtr) 70,72,330 48,80,192 22,70,476 44.92% 114.94%

    Trading Volume (shares) (low in 1 qtr) 61,801 30,385 69,595 103.39% -56.34%

    Ratio - High/low trading volume 114.44 160.61 32.62 -28.75% 392.31%

    Ratio - High/average trading volume 8.61 9.02 6.73 -4.64% 34.06%

    Source - Capitaline

    http://www.andhracements.com/

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

    STAKEHOLDERS EMPOWERMENT SERVICES

    4 | P A G E

    SECTOR: CEMENT REPORTING DATE: 30TH NOVEMBER, 2017

    ANDHRA CEMENTS LTD. www.andhracements.com

    TABLE 7 (A): OWNERSHIP & MANAGEMENT RISKS

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