SADA ATUT RAHO

EMBRACING TOMMORROW

ACC LTD.

• 1. HIGHLIGHTS OF PERFORMANCE

• Cement despatches were 23.68 million tonnes during the year as compared to 21.17 million tonnes during 2010;

• Consolidated income for the year under review was 10428 crore, an increase of 21% as compared to 8619 crore in 2010;

• Consolidated profit before tax increased in 2011 to 1505 crore against ` 1415 crore in 2010;

• Consolidated profit after tax was higher in 2011 at 1301 crore against ` 1078 crore in 2010.

• 2. FINANCIAL RESULTS 11-10

• Sale of product and services (net of excise duty)• and Other Income 9852.20 8074.26• Profit before Tax 1540.42 1461.45• Provision for tax 215.16 341.44• Profit after tax 1325.26 1120.01• Balance brought forward from previous year 3381.41 3203.85• Profit available for appropriations 4706.67 4323.86• Appropriations:• Interim Dividend 206.52 187.75• Proposed Final Dividend 319.17 384.88• Dividend Distribution Tax 85.28 95.10• Previous Year Dividend Distribution Tax (1.49) (0.93)• General Reserves 250.00 250.00• Debenture Redemption Reserve 25.00 25.00• Amortization Reserves 0.65 0.65• Surplus carried to the next year’s account 5 3821.54 3381.41

• 3. DIVIDEND Your Directors are pleased to recommend a final dividend of ` 17 per Equity

share of ` 10 each. The Company had distributed an interim dividend of 11 per Equity share in August 2011. The total dividend for the year ended December 31, 2011 would accordingly be ` 28 per Equity share as against the total dividend of ` 30.50 per Equity share for the year ended December 31, 2010 which included the payment of one-time ‘‘Special Dividend’’ of ` 7.50 for the Platinum Jubilee Year. The total outgo for the current year amounts to ` 610.97 crore, including dividend distribution tax of ` 85.28 crore, as against ` 667.73 crore, including dividend distribution tax of ` 95.10 crore in the previous year.

Cash Flow analysis 2011

2010 Crore

Crore• A. Cash flow from operating activities:1 Net Profit before Tax 1,540.42 1,461.45• Adjustments for:2 Depreciation and Amortisation 475.30 392.683 Loss on sale / write off of Fixed Assets (Net) 9.44 38.374 Profit on Sale of Current Investments, Other than trade (36.15) -5 Interest and Dividend Income (155.76)

(98.48)6 Interest Expense 96.91

56.787 Provision for Bad and Doubtful Debts and• Advances written back (Net) (35.43) (31.50)8 Capital Spares Consumed 14.76

16.519 Wealth Tax provision 0.15 0.7110 Provision for obsolescence of spare parts 6.05 71.19• Operating profit before working capital changes 1,915.69

1,907.71• Movements in Working Capital:11 Decrease / (Increase) in Sundry debtors and Loans & advances (37.65)

84.8812 Decrease / (Increase) in Inventories (190.76)

(207.20)13 Decrease / (Increase) in Other current assets 6.06

1.7014 Increase / (Decrease) in Current liabilities and Provisions 300.46

224.24• Cash generated from operations 1,993.80 2,011.3315 Direct Taxes Paid - (Net of refunds) (416.42)

(75.95)• Net Cash flow from operating activities 1,577.38

1,935.38

Cont.

• B. Cash flow from investing activities:16 Loans to Subsidiary Companies (30.64) (58.77)17 Repayment of Loans from Subsidiary Companies 61.00

23.1318 Purchase of Fixed Assets (Including Capital work-in-progress) (468.07) (833.23)19 Proceeds from sale of Fixed Assets 29.82

22.1120 Profit on Sale of Current Investments, Other than trade 36.15 -21 Purchase of Investments -

(37.16)22 Investment in subsidiary Company (50.00)

(11.78)23 Investment in Deposits - (10.00)24 Dividend Received 31.83 51.6625 Interest Received 125.67

41.79• Net cash used in investing activities (264.24)

(812.25)• C. Cash flow from financing activities:26 Interest paid {includes capitalised 1.28 Crore (Previous Year - ` 36.60 Crore)} (72.76)

(78.14)27 Proceeds from issue of Share Capital(Including Securities premium) -

0.0828 (Repayment) / Proceeds of Short term Borrowings (9.93)

9.9329 Repayment of Long term Borrowings (3.16)

(53.03)30 Dividend paid (including Dividend Distribution Tax) (682.47)

(500.23)• Net cash used in financing activities (768.32)

(621.39)• Net increase / (decrease) in cash and cash equivalents 544.82 501.74• Cash and cash equivalents at the beginning of the year 2,287.59 1,785.85• Cash and cash equivalents at the end of the year 2,832.41

2,287.59• Components of cash and cash equivalents:• Cash and Bank Balances as per Balance sheet (Refer Schedule 10) 1,652.56 980.03Add : Investment in Mutual Funds 594.00 1,307.56Add : Investment in Certificate of Deposits 585.85 -• Cash and Cash equivalents in cash flow statement 2,832.41

2,287.59

Liquidity And Solvency Ratios

Current Ratio 0.87 0.68 0.67 0.89 0.86

Quick Ratio 0.58 0.43 0.42 0.61 0.55

Debt Equity Ratio 0.07 0.08 0.09 0.10 0.07

Long Term Debt Equity Ratio 0.07 0.08 0.09 0.10 0.07

Debt Coverage Ratios

Interest Cover 15.58 25.57 27.96 42.56 24.05

Total Debt to Owners Fund 0.07 0.08 0.09 0.10 0.07

Financial Charges Coverage Ratio 20.49 32.48 32.02 49.92 28.21

Financial Charges Coverage Ratio Post Tax 19.58 27.64 24.12 38.71 24.63

Management Efficiency Ratios

Inventory Turnover Ratio 18.59 19.04 25.22 27.51 24.85

Debtors Turnover Ratio 42.62 40.04 31.22 24.12 27.40

Investments Turnover Ratio 18.59 19.04 25.22 27.51 24.85

Fixed Assets Turnover Ratio 0.97 0.96 1.19 1.25 1.26

Total Assets Turnover Ratio 1.22 1.11 1.23 1.35 1.55

Asset Turnover Ratio 1.27 0.96 1.19 1.25 1.26

Average Raw Material Holding 39.41 44.39 37.17 33.05 21.34

Average Finished Goods Held 7.09 8.05 7.01 6.45 7.17

Number of Days In Working Capital -21.75 -63.76 -54.17 -17.02 -18.25

Dec '11 Dec '10 Dec '09 Dec '08 Dec '07

Profitability Ratios

Operating Profit Margin(%) 18.42 21.42 31.95 24.66 28.15

Profit Before Interest And Tax Margin(%) 12.97 15.86 27.22 20.01 23.24

Gross Profit Margin(%) 13.33 16.29 27.68 20.59 23.72

Cash Profit Margin(%) 15.03 17.36 23.61 19.22 21.57

Adjusted Cash Margin(%) 15.03 17.36 23.61 19.22 21.57

Net Profit Margin(%) 13.78 14.26 19.69 16.29 20.44

Adjusted Net Profit Margin(%) 13.78 14.26 19.69 16.29 20.44

Return On Capital Employed(%) 19.60 20.75 35.80 31.43 39.84

Return On Net Worth(%) 18.42 17.31 26.70 24.61 34.64

Adjusted Return on Net Worth(%) 13.48 15.00 26.32 23.05 29.16

Return on Assets Excluding Revaluations 383.09 344.59 320.45 262.56 221.33

Return on Assets Including Revaluations 383.09 344.59 320.45 262.56 221.33

Return on Long Term Funds(%) 19.60 20.78 35.80 31.43 39.98

Profit & Loss Account Ratios

Material Cost Composition 20.92 19.88 15.37 16.32 26.73

Imported Composition of Raw Materials Consumed 7.79 13.74 15.72 9.83 6.49

Selling Distribution Cost Composition 19.85 18.79 17.37 19.05 18.55

Expenses as Composition of Total Sales 0.14 0.67 0.69 0.99 1.29

Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit 46.10 59.61 31.43 36.20 30.49

Dividend Payout Ratio Cash Profit 33.93 44.14 25.92 29.13 25.13

Earning Retention Ratio 37.00 31.22 68.11 61.35 63.78

Cash Earning Retention Ratio 57.72 51.03 73.78 69.30 71.10

AdjustedCash Flow Times 0.35 0.38 0.29 0.34 0.20

Dec '11 Dec '10 Dec '09 Dec '08 Dec '07

Earnings Per Share 70.59 59.66 85.58 64.62 76.67

Book Value 383.09 344.59 320.45 262.56 221.33

Source : Dion Global Solutions Limited

Ratios Acc Ambuja Madras India cement

Grasim

Profitability Ratios

Operating Profit Margin(%) 18.42 22.92 29.52 21.49 25.36

Profit Before Interest And Tax Margin(%)

12.97 17.25 21.68 15.44 21.16

Gross Profit Margin(%) 13.33 17.67 21.77 15.51 22.44

Cash Profit Margin(%) 15.03 17.90 19.73 12.97 21.93

Adjusted Cash Margin(%) 15.03 17.90 19.73 12.97 21.93

Net Profit Margin(%) 13.78 14.16 11.71 6.93 22.45

Adjusted Net Profit Margin(%)

13.78 14.16 11.71 6.93 22.45

Return On Capital Employed(%)

19.60 20.96 17.44 10.59 14.48

Return On Net Worth(%) 18.42 15.28 18.78 7.21 12.93

Adjusted Return on Net Worth(%)

13.48 13.79 19.26 7.30 11.05

Return on Assets Excluding Revaluations

383.09 52.38 86.16 132.13 992.19

Return on Assets Including Revaluations

383.09 52.38 86.16 132.13 992.19

Return on Long Term Funds(%)

19.60 21.05 20.45 12.06 14.57

Liquidity And Solvency Ratios

Current Ratio 0.87 1.14 0.38 0.95 1.19

Quick Ratio 0.58 0.85 0.34 1.35 0.81

Debt Equity Ratio 0.07 0.01 1.03 0.56 0.07

Long Term Debt Equity Ratio 0.07 0.01 0.73 0.37 0.06

Debt Coverage Ratios

Interest Cover 15.58 32.35 4.58 2.34 37.96

Total Debt to Owners Fund 0.07 0.01 1.03 0.56 0.07

Financial Charges Coverage Ratio

20.49 40.81 6.16 3.22 41.84

Financial Charges Coverage Ratio Post Tax

19.58 32.81 5.01 2.90 36.59

Management Efficiency Ratios

Inventory Turnover Ratio 18.59 10.38 16.82 8.98 8.88

Debtors Turnover Ratio 42.62 45.92 16.63 18.11 10.00

Investments Turnover Ratio 18.59 10.38 16.82 8.98 8.88

Fixed Assets Turnover Ratio 0.97 0.88 0.58 0.69 1.59

Total Assets Turnover Ratio 1.22 1.05 0.80 0.71 0.51

Asset Turnover Ratio 1.27 0.88 0.75 0.65 0.53

Average Raw Material Holding

39.41 15.54 112.89 -- 48.48

Average Finished Goods Held

7.09 5.97 6.01 -- 18.20

Number of Days In Working Capital

-21.75 20.84 -83.23 102.55 28.14

Profit & Loss Account Ratios

Material Cost Composition 20.92 19.49 19.14 13.96 53.29

Imported Composition of Raw Materials Consumed

7.79 12.18 2.15 9.07 41.75

Selling Distribution Cost Composition

19.85 19.85 19.02 24.16 0.49

Expenses as Composition of Total Sales

0.14 0.94 0.42 0.06 2.84

Earnings Per Share 70.59 8.01 16.18 9.54 128.34

Book Value 383.09 52.38

86.16

132.42 992.19

Source : Dion Global Solutions Limited