The Directors have pleasure in presenting the Twenty Eighth Annual
Report together with the audited accounts and Cash Flow statement for
the financial year ended 31st March 2012.
The Financial results for the year ended 31st March, 201 2 are
2011 - 2012 2010 - 2011
Rs.in Lakhs Rs.in Lakhs
Revenue from operations (Gross) 37729.51 22460.28
Profit before Interest, Deprecation 6945.73 3994.41
Less : interest 3376.83 2590.14
Less : Depreciation 1383.27 1274.78
Profit before Tax 2185.63 129.49
Provision for Taxation including
deferred Tax 605.18 71.88
Profit after Taxation 1580.45 57.61
General Reserve 240.00 --
Dividend 220.68 147.12
Dividend Tax 35.80 23.87
Review of Operations
The company has produced a quantity of 7,89,174 MT. of cement during
the current financial year compared to the previous year production of
6,51,278 MT. of cement registering an increase of 21 %. The quantity
sold during the year under review stands at 7,94,528 MT. compared to
the quantity of 6,38,449 MT. during the previous financial year showing
an increase of 24%.
The gross sales in terms of value during the year under review were at
Rs.37645.47 Lakhs as against Rs.22379.87 Lakhs during the previous
financial year translating into an increase of 68 %. Similarly the
Profit Before Tax for the current financial year is Rs.21 85.42 Lakhs
against Rs.1 29.49 Lakhs for the previous financial year. The profit
after tax for the year under review stands at Rs.1 580.45 Lakhs compared
to Rs.57.61 Lakhs during the previous financial year.
It can be observed that there is a significant improvement in the
performance both in the physical terms and financial terms during the
year under review compared to the previous year.
The higher production and sale as well as and the improved sale price
have helped the company to post a better performance compared to the
previous year. During the year 201 1-12 there was an increase in the
cost of electricity and coal, which are major components of cost for a
cement industry. The average increase in unit charges of power stands
at about 1 1 % (current year average Rs.4.00 per unit and Rs.3.59 during
the previous year) and the cost of coal per tone has gone up on an
average by 28% (from average of Rs.3923.00 during 201 0-11 to Rs.5049.00
during the year 2011-12). But for the increase in these costs, the
company''s profitability would have been much better during the year 201
1-12. Inspite of the increase in these fuel costs, the company could
get a better financial results with the help of higher production and
sale quantities and better realizations in sale price.
The cement industry, with its fluctuating fortunes, is known for
abnormal variations in the prices owing to several reasons including
the changes in demand for the product, supply side changes, increase in
installed capacities, changes in the Government spending pattern,
emphasis on infrastructure projects, political Situation etc. The year
under review has seen a better price realization and it is hoped that
the situation would continue.
The statistics available show that there is negative growth in AP for
cement demand by about 2% during the year 2011-12 compared to the
negative growth of 12 % in the year 2010-11 and positive growth of 3%
during 2009-10. The company could over come the impact of this negative
growth by expanding its marketing network to neighboring states by
increasing the quantum of sale in these states.
The company has embarked upon an expansion project, through its fully
owned subsidiary M/s.Vennar Ceramics Limited to set up a 6500 Sq.
metres per day of ceramic wall tiles project at its existing power
plant site at Perikigudem. The estimated project cost for the same
stands at Rs.55 crores. As the company has started to scout for a
strategic partner with experience in marketing of ceramic products
particularly wall tiles, it has been identified that M/s.Kajaria
Ceramics Limited is interested in taking up marketing arrangement as
well as to invest in the company as strategic partner. In view of the
fact that they have an established brand with all India presence and in
order that synergies'' in operation and marketing can be achieved, it
has been thought of that the company should go in to a strategic
association with M/s.Kajaria Ceramics Limited. They have been invited
to take up a stake of 51%. Accordingly the total project cost of 55
crores is being financed both by Anjani Portland Cement Limited and
M/s.Kajaria Ceramics Limited with term loan assistance of Bank of
Baroda. The tiles project is expected to become operational during the
middle of June, 2012. The management is confident that with the
assistance of M/s.Kajaria Ceramics Limited the ceramics wall tiles
project would be an added advantage to the Anjani Portland Cement
The Board of Directors of the company has recommended a dividend of
Rs.1.20 per equity share of 0/- each for the year ended 31st March, 201
The aggregate amount of deposits accepted by the Company stood at
Rs.337.97 Lakhs and matured and unclaimed deposits as on 31st March, 2012
In accordance with the provisions of the Companies Act, 1 956 and in
terms of Articles of Association of the Company Mr. P S Ranganath and
Mr. P Ramachandra Raju retire by rotation at the ensuing Annual General
Meeting and being eligible, offers themselves for re-appointment.
The detailed profile of the above directors are given under the head
Directors'' Responsibility Statement
As required under Section 21 7(2AA) of the Companies Act, 1 956, the
Directors hereby confirm that:
i. In the preparation of the annual accounts, the applicable
accounting standards have been followed and that no material departures
are made from the same.
ii. We have selected such accounting policies and applied them
consistently and made judgements and estimates that are reasonable and
prudent so as to give true and fair view of the state of affairs of the
Company at the end of the financial year and of the profits of the
Company for the period;
iii. We have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1 956, for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities;
iv. We have prepared the annual accounts on a going concern basis.
Ministry of Corporate Affairs (MCA) has issued a General Circular
No.2/2011, D t.08.02.201 1, deciding to grant a general exemption from
attaching the Balance Sheet, Profit & Loss Account, Directors Report
and Auditors Report of Subsidiary Companies to the Balance sheet of the
Your Company will provide a copy of the Annual Accounts of the
subsidiary companies and other related information upon written request
by any member of your Company or its Subsidiary Companies. These
documents will be available for inspection by any shareholder at the
Registered Office of the Company, on any working day during business
A statement of Anjani Portland Cement Limited (Holding Company)
interest in Hitech Print Systems Limited and Vennar Ceramics Limited
(Subsidiary Companies) is enclosed as required under Section 21 2 of
the Companies Act, 1 956.
The information of Subsidiary companies as required to be disclosed as
Per the directions given by MCA while granting exemption under section
212(8) of the Companies Act, 1 956 is enclosed and forms part of the
Consolidated Financial Statements
Yours Directors have pleasure in attaching the consolidated financial
statements pursuant to the requirements of Accounting Standard - 21 and
Clause 41 of the Listing Agreement entered into with the Stock
Exchanges. These statements were prepared in accordance with the
Accounting Standards prescribed by the Institute of Chartered Accounts
of India in this regard.
The Auditors'' Report does not contain any qualifications.
The Company places significant reliance on ethical and prudent
governance. Transparency in operations by means of professional
management with empowered managers is firmly believed as the heart of a
healthy system of corporate governance. The various internal controls
laid down for day-to-day operations provide the necessary checks and
balances and these in turn go to make governance effective. The
mechanism also results in prudent and diligent decision making at all
levels ensuring the overall benefit of all shareholders. It also gives
considerable comfort to lending banks, deposit holders, vendors,
customers and others who interact with the company in their assessment
of the company''s performance.
A detailed report on matters relating to Corporate Governance as
statutorily required under Clause 49 of the Listing Agreement with
Stock Exchanges is annexed as part of this Annual Report together with
the report of the Auditors on its compliance.
M/s. M Anandam & Co., Chartered Accountants, Secunderabad, the
Statutory Auditors of the company, retires at the ensuring Annual
General Meeting and are eligible for re-appointment.
The Board recommends the reappointment of M/s. M Anandam & Co.,
Secunderabad, as Auditors of the Company to hold office till the
conclusion of the next Annual General Meeting.
Pursuant to the directives from the Central Government and the
provisions of Section 233 B of the Companies Act, 1956, M/s. Narasimha
Murthy&Co., Cost Accountants, Hyderabad have been appointed as Cost
Auditors of the Company for the financial year 2011-12.
Particulars of Employees
The details of employees under the provisions of Section 21 7 (2A) of
the Companies Act, 1 956 read with the companies (Particulars of
employees Rules, 1 975 as amended) are furnished as annexure to the
Energy, Technology and Foreign Exchange
The particulars of conservation of energy, Technology absorption,
Foreign Exchange earnings and outgo as required to be disclosed in
terms of Section 21 7(1)(e) of the Companies Act, 1 956 read with the
Companies (Disclosure of particulars in the Report of Board of
Directors) Rules, 1988 is annexed hereto in Forms A, B & C which are
part of this report.
Safety and Pollution Control
The manufacturing units are fully compliant with pollution control
measures as directed by the statutory authorities from time to time and
have obtained necessary approvals from these bodies.
During the period, Industrial relations continued to be cordial. Your
Directors take this opportunity to thank all the employees for their
dedicated and sincere services towards a harmonious relationship and
the progress of the company.
Your Directors place on record their appreciation to the various
statutory bodies and departments of the State and Central Governments
and Bankers, Dealers, Stockists, Customers, Suppliers and Share holders
of the Company for their valuable support to the Company.
For and on behalf of the Board of Directors
P V R L Narasimha Raju