The Ramco Cements Ltd
Directors Reports
Your Directors have pleasure in presenting their 65th Annual Report and the
Audited Accounts of the Company for the year ended 31st March 2023. (Rs. in
crores)
Separate Financial Statements |
31-03-2023 |
31-03-2022 |
Total Income |
8,171.97 |
6,010.62 |
Earnings Before Interest, Taxes, Depreciation and Amortization
(EBITDA) |
1,218.65 |
1,314.48 |
| Less: Interest |
240.52 |
112.40 |
Profit Before Depreciation & Tax (PBDT) |
978.13 |
1,202.08 |
| Less: Depreciation |
504.44 |
400.84 |
Profit Before Tax (PBT) |
473.69 |
801.24 |
| Less: Tax Expenses |
|
|
| Current Tax |
24.37 |
165.48 |
| Current Tax adjustment of earlier years |
1.31 |
6.67 |
| Deferred Tax |
105.20 |
41.22 |
| MAT credit reversal of earlier years |
- |
4.63 |
| Deferred Tax adjustment of earlier years |
(0.73) |
(309.46) |
Profit After Tax (PAT) |
343.54 |
892.70 |
| Other Comprehensive Income [Net of tax credit of Rs. 1.48 crores (PY: Rs.
0.83 crores)] |
(3.91) |
(2.65) |
Total Comprehensive Income (TCI) |
339.63 |
890.05 |
Changes in Capital and Debt Structure
The paid-up capital of the Company is Rs. 23,62,92,380/- consisting of 23,62,92,380
shares of Rs. 1/- each. There has been no change in the Capital Structure of the Company
during the year under review.
The Company does not have any Scheme for issue of sweat equity to the employees or
Directors of the Company.
The details of Employees Stock Option Schemes (ESOS) are provided in this Report.
The details of Secured Redeemable Non-Convertible Debentures issued during the year
under review are given below:
| (a) Name of the Series |
7.90% Series - I |
7.90% Series - J |
7.90% Series - K |
| (b) Date of issue of the securities |
28-03-2023 |
28-03-2023 |
28-03-2023 |
| (c) Date of allotment of the securities |
29-03-2023 |
29-03-2023 |
29-03-2023 |
| (d) Number of securities |
15,000 |
15,000 |
20,000 |
| (e) Type of issue |
Private Placement |
Private Placement |
Private Placement |
(f) Details of the debt restructuring pursuant to which the securities
are issued |
Not Applicable |
Not Applicable |
Not Applicable |
| (g) Issue price – per instrument |
Rs.1.00 lakh |
Rs.1.00 lakh |
Rs.1.00 lakh |
| (h) Coupon rate |
7.90% |
7.90% |
7.90% |
| (i) Maturity date |
29-03-2027 |
29-09-2027 |
29-03-2028 |
| (j) Amount raised |
Rs.150.00 crores |
Rs.150.00 crores |
Rs. 200.00 crores |
Dividend
Your Directors have pleasure in recommending a dividend of Rs. 2/- per share [PY: Rs.
3/- per share] on the equity capital of the Company. This would entail an outflow of
Rs.47.31 crores with a pay-out ratio of 15.04% of Company's consolidated post tax profit.
As per the Dividend Distribution Policy of the Company, the Company should strive to
distribute at least 10% of consolidated post tax profit as dividend.
The payment of dividend is in accordance with the "Dividend Distribution
Policy" of the Company. The Policy is available on the website of the Company under
the weblink: https://www.ramcocements.in/investors/codes-and-policies
The Dividend Distribution Policy forms part of this Report.
Transfer to General Reserves
After appropriations, a sum of Rs. 200 crores has been kept as retained earnings of the
Company and a sum of Rs. 268.19 crores has been transferred to General Reserve. As on 31-03-2023,
the General Reserve stands at Rs. 6,512.25 crores.
Taxation
The Company has made current tax provision of Rs.24.37 crores for the year ended
31-03-2023 as against Rs.165.48 crores in the previous year.Current tax adjustments of
earlier years is Rs.1.31 crores as against Rs.6.67 crores during the previous year.
The deferred tax for the year ended 31-03-2023 is Rs.105.20 crores as against Rs.41.22
crores in the previous year.
As per Section 115BAA of the Income Tax Act, 1961, the Company had an irrevocable
option of shifting to a lower tax rate and simultaneously forgo certain tax incentives,
deductions and accumulated MAT credit. In view of the overall tax benefits available under
the said option, the company had opted for shifting to lower tax rate from the FY22
onwards. Consequently, the company had written back the excess deferred tax provision of
Rs.305.58 crores from Deferred Tax Liability to profit and loss in the previous year and
also reversed MAT Credit relating to earlier years of Rs.4.63 crores.
Deferred tax credit adjustments pertaining to earlier years other than impact on
account of Section 115BAA for the year ended 31-03-2023 is Rs.0.73 crores as against
Rs.3.88 crores during the previous year.
Management Discussion & Analysis Report Macro Economic Review Global Economy
The year 2022 was marked with certain challenges such as the geopolitical risk arising
from the Russia and Ukraine war, inflationary pressures and the resurgence of COVID-19 in
China. These factors adversely impacted the economic growth trajectory in 2022 and are
expected to impact the growth of the global economy in 2023 as well. The global growth in
2022 is estimated to have slowed down to 3.4% compared to 6.2% in 2021. However, the
second half of the year saw nascent signs of recovery of the global economy. The emerging
markets and developing economies are estimated to have grown their gross domestic product
(GDP) at an average of 4.0% in 2022 compared to 6.9% in 2021. On the other hand, the
advanced economies are estimated to have grown at an average of 2.7% in 2022 compared to
5.4% in 2021.
With the escalation of Russia-Ukraine war, there has been a continued disruption in the
global trade quantum. Further, prices of gas, fuel and food increased, translating into
rising inflation. The global inflation in 2022 is estimated at 8.7%. Of this, the
inflation for emerging economies and advanced economies are estimated at 7.3% and 9.8% in
2022, compared to 3.1% and 5.9% respectively in 2021. However, with the focus of
Governments across the world on securing global disinflation, containing the return of
COVID-19, ensuring financial stability and restoring debt stability, the global economy is
expected to stabilise in 2024 with a GDP growth of 3.0%, before dipping slightly in 2023
with a GDP growth rate of 2.8%. The policy initiatives are expected to successfully reduce
global inflation to 7.0% in 2023 and further to 4.9% in 2024.
Indian Economy
The inflationary pressure across the entire world has impacted the Indian economy as
well. As per its 1st advance estimates, the Government has estimated the Indian
economy to have grown at 7% in 2022-23 compared to 8.7% in 2021-22. The year saw rising
power, fuel and food cost. The Consumer Price Index (CPI) of India is estimated at 6.8% in
2022-23, compared to 5.5% in 2021-22. The target range for inflation during the fiscal was
fixed at 4% with an upper tolerance of 6%. However, between April and October 2022 the CPI
was outside the target range set by the Centre. To bring inflation under control, RBI
increased the policy repo rate under the liquidity adjustment facility (LAF) by 250 basis
points from 4.0% to 6.5% between May 2022 and March 2023. Additionally, the Government cut
down import duty on major inputs such as ferronickel, coking coal, among others, to zero;
rolled out phase-wise reduction in excise duty of petrol and diesel; waived off customs
duty on cotton; and prohibited export of wheat.
With the increasing thrust of Government on infrastructure and capital expansion, the
country is poised for a sustained growth in the foreseeable future. The Union Budget
2023-24 speaks volumes of the Government's focus on infrastructure, financing new
businesses, and making India more self-reliant and self-employed. The GDP growth of the
country in 2023-24 is projected between 6 and 6.8%.
Cement Industry Review
India stands tall as the second largest cement producer in the world with its installed
capacity crossing 600 million tonnes (MT), carving 7% of the world's capacity. According
to CARE, the country's cement production is estimated at 380-390 MT in 2022-23, growing at
8-9% y-o-y, riding on the optimism from the government thrust on infrastructure and
increasing housing demand across the country. In 2021-22, the cement production of the
country was pegged at 356 MT compared to 296 MT in 2020-21, registering a y-o-y growth of
20%, owing to normalisation of the economy and macro sectors post the pandemic.
As stated by CARE, the average wholesale cement prices in H1 2022-23 has seen a 7%
growth y-o-y. Though the cement prices were on the rise in the first half of the fiscal,
the EBITDA margin of most cement manufacturers in India were on the downward trajectory
owing to the rising inflation and the increase in price of fuel and power costs. However,
the prices of imported coal and pet coke has dulled down in the 3rd quarter of
2022-23, thereby providing some relief on the cost of production. Despite the relief, the
severe competition in the cement sector owing to the excess supply resulted in continuous
pressure on selling prices.
The increasing population along with the continuous thrust by the Government on the
infrastructure of the country and ensuring housing for all is expected to keep driving the
cement demand in India for the foreseeable future. The thrust by the Government on the
infrastructure of the country is validated by a 36% y-o-y growth in capital allocation for
road infrastructure, 66% y-o-y growth in capital allocated for affordable housing, and a
33% y-o-y growth in capital allocation of capital expenditure in the Union Budget 2023-24.
Riding on these tailwinds, CRISIL has stated that the Indian cement industry is expected
to see a addition of ~80 MT capacity by 2023-24, to support the increasing demand of
cement in the country. Further, with the normalisation of life, post the COVID-19
pandemic, offices started opening on full-time basis, with increasing demand for
commercial space, which is expected to drive the cement demand for the next few years.
(Source: CMA, CARE, CRISIL)
Growth drivers
• Growing housing demand:
An ever-increasing population has been continuously driving housing demand in the
country. The country saw residential sales of ~3,64,900 units in 2022, compared to
2,36,500 units in 2021, clocking a y-o-y growth of a whopping 54%, indicating huge
upstream demand of cement
• Favourable demographics:
India's urbanisation rate in 2022 was estimated at 35.9%, and is expected to reach
50.9% by 2047, thereby, driving the demand of cement in urban locales
• Underpenetrated cement consumption:
The per capita cement consumption in India is pegged at 216 kg compared to a global
average of 525 kg, which indicates the huge headroom available for growth in the near
future
• Rising per capita income:
The per capita net national income in India is estimated to have increased from Rs.
1,50,007 in 2021-22 to Rs. 1,70,620 in 2022-23, at current prices, thereby, indicating the
increasing ability to spend
• Rising office space demand:
During 2022, the Indian office sector clocked a gross absorption of 56.6 mn sq ft,
growing 40% y-o-y, as stated by CBRE. Simultaneously, supply of office space also saw an
uprise from 49.7 million sq ft in 2021 to 50.6 million sq ft in 2022, marking the
increasing upstream consumption of cement
Government impetus through Union Budget 2023-24 Roads
• The Ministry of Road Transport and Highways (MoRTH) has set a target of
completing 25,000 km road development in the Union Budget 2023-24
• MoRTH has been allocated an outlay of Rs. 2.7 lakh crores to ensure completion
of its target, a 36% growth over the previous budget
Railways
• The Government has announced its highest-ever capital outlay for railways in
this Budget, standing at Rs.2.40 lakh crores
Housing
• The Government has revised its allocation towards PM Awaas Yojana (PMAY) to over
Rs. 79,000 crores in its Union Budget, a 66% rise over the previous budget
Infrastructure
• An investment of Rs. 75,000 crores was announced, including Rs. 15,000 crores
from private sources, for 100 critical transport infrastructure projects, for last and
first mile connectivity for ports, coal, steel, fertiliser, and food grains sectors
Capital investment
• The capital expenditure earmarked by the Government saw a substantial growth of
33% to reach Rs. 10 lakh crores, forming 3.3% of GDP
• The ‘Effective Capital Expenditure' of Centre was announced to be Rs. 13.7
lakh crores, forming 4.5% of GDP(Source: CMA, PIB, IBEF, World Bank)
Company Review Cement Division
The Division has sold 148.21 lakh tons of cement during the year compared to 110.48
lakh tons in the previous year, registering a y-o-y growth of 34%. The revenue including
other operating income from this division for the current year is Rs. 7,937.27
crores (net of applicable taxes) compared to Rs. 5,835.21 crores (net of applicable
taxes) during the previous year, showing an increase of 36%.
Out of the above, the Company's cement exports accounts for 0.67 lakh tons for a value
of Rs.32.68 crores as against 0.34 lakh tons for a value of Rs.13.39 crores during the
previous year.
The Company increased its market share across most of its operating markets. During the
year under review, the Company had made further inroads in the fast growing infrastructure
and large project segments.
The Company continued its focus on reinforcing its philosophy of ‘Right Cement for
Right Application' during the year under review. Further, the company is focussing on its
premium products, thereby increasing their share in the sales mix, which in turn,
contributed towards the increase in sales.
Dry Mortar Division
The Division has sold 2.03 lakh tons of Dry Mortar products accounting for a revenue of
Rs. 135.42 crores (net of applicable taxes) during the year as against 0.92 lakh tons of
Dry Mortar products accounting for a revenue of Rs. 70.42 crores (net of applicable taxes)
during the previous year.
Out of the above, the Company's dry mortar exports accounted for 123 tons for a value
of Rs.0.14 crores as against 92 tons for a value of Rs.0.09 crores during the previous
year.
Ready Mix Concrete Division
The Division has sold 26,983 cu.m. of concrete during the year, accounting for a
revenue of Rs. 14.45 crores (net of applicable taxes) compared to 30,567 cu.m. of concrete
accounting for a revenue of Rs. 14.81 crores (net of applicable taxes) during the previous
year.
Wind Farm Division
The Division has generated 2,233 lakh units as compared to 2,325 lakh units in the
previous year. Out of this, 2,162 lakh units were generated from the wind farms in Tamil
Nadu and another 71 lakh units from the wind farms in Karnataka. Out of the units
generated in Tamil Nadu, 648 lakh units were meant for adjustment against the power
consumed in our plants and balance 1,514 lakh units were sold to Tamil Nadu Generation and
Distribution Corporation Limited (TANGEDCO) for a value of Rs. 45.70 crores. Including
previous balances, a sum of Rs. 119.12 crores was outstanding from TANGEDCO as on 31st
March 2023.
The 71 lakh units generated during the year under review in Karnataka have been banked
with Bangalore Electricity Supply Company Limited (BESCOM). Including the units that have
been banked during the previous year, the Company sold 76 lakh units to third parties for
a value of Rs. 2.78 crores (net), and the same had been realised.
77 lakh units generated in the year 2021-22, remained unbilled.
The income during the year from the Division was Rs. 48.13 crores compared to Rs. 59.54
crores in 2021-22.
Other Income
Other income during the year was Rs. 36.70 crores compared to Rs. 30.64 crores in
2021-22.
Net Revenue
The net revenue for the company for current year is Rs. 8,171.97 crores (net of
applicable taxes) compared to Rs. 6,010.62 crores (net of applicable taxes) during the
previous year, showing an increase of 36%. The company's net revenue has crossed the eight
mille crores mark for the first time.
Power Plants
The Company's thermal power plants aggregating to a capacity of 175 MW are located at
its cement manufacturing plants. The thermal power plants act as source for captive power
for the Company, and the power generated from the thermal power plants are used for
self-consumption in cement manufacturing.
Capital Expenditure Programmes – New Projects
The status of the projects is given below.
Cement Plants Kolimigundla
In the Board's Report of the Company for the year ended 31st March 2022, it
was informed about the progress of establishment of the Company's new cement plant at
Kalavatala village, Kolimigundla Mandal, Nandyal District, Andhra Pradesh.
The Kiln was commissioned in June 2022 and Cement Mill was commissioned in September
2022. The first phase of the WHRS of 6 MW capacity, comprising of Steam Turbine Generator
along with Air Quenched Cooler boiler was commissioned in December 2022. The second phase
of the WHRS of 3 MW capacity comprising of preheater boiler was commissioned in
March 2023. The third phase of WHRS of 3.15 MW capacity would be commissioned in July
2023. With this, the total aggregate capacity of the WHRS would be 12.15 MW.
The Thermal Power plant of 18 MW is under erection and expected to be commissioned in
2023-24.
Railway siding of 34.936 kms to provide flexibility in logistics is under erection and
expected to be commissioned in 2023-24.
The Clinkerisation capacity has been re-assessed from 2.25 Million Tons Per Annum
(MTPA) to 2.50 MTPA and Cement manufacturing capacity has been re-assessed from 1 MTPA to
1.50 MTPA.
Increase in Cost: Civil
We had installed additional structures such as coal shed for thermal power plant,
linear limestone shed, hoppers for Line II and separate clinker truck loading. There were
also other infrastructure developments like internal roads, drains, etc.
Mechanical
We had installed additional equipments in cement wagon loading system, wagon tippler,
clinker wagon loading system and belt conveyors.
Because of the above and increase in interest and pre-operative expenditure the cost of
the project has increased to Rs. 3,000 crores.
Ramasamy Raja Nagar
In the Board's Report of the Company for the year ended 31st March, 2022, it
was informed about the progress of Company's Modernisation of the Ramasamy Raja Nagar
Plant, involving establishment of Line III and a limestone benefication plant at the
Pandalgudi Mines. The modernisation and establishment of Line III has been completed in
March 2023 and subsequently the clinkerisation capacity of the plant has increased from
1.10 MTPA to 2.14 MTPA and the cement manufacturing capacity of the plant has increased
from 2 MTPA to 3 MTPA.
During the execution of the project, the existing limestone yard was converted into
additive storage yard. Hence, we established two circular limestone yards for storing
separately the blended limestone and washed kankar. Further there was increase in the
scope of the project, which had led the cost of the project to increase from Rs. 550
crores to Rs. 817 crores. Besides increase in the clinkerisation capacity the project has
helped the Company to achieve better power and fuel efficiencies, thereby, conserving
energy, and reducing fugitive dust emissions and carbon emissions.
The establishment of limestone benefication plant at the Pandalgudi Mines is in
progress and is expected to be commissioned in July 2023.
Establishment of Line II at Odisha Grinding Unit
In the Company's efforts to continually enhance its grinding capacity, it is proposed
to establish Line II at its existing Odisha Grinding Unit, located at Haridaspur, Jajpur
District. The cost of the project is Rs. 130 crores. The capacity of Line II would
be 0.90 MTPA. The additional output would help the company to enhance its market share in
Odisha and other Eastern States.
Dry Mortar Plants
In the Board's Report of the Company for the year ended 31st March, 2022, it
was informed about the establishment of four new dry mortar plants at a cost of Rs. 75
crores each.
The plants would produce high value products, such as water proofing, repair products,
flooring screeds, liquid products, besides other regular dry mix products.
The projects at Salem and Ramasamy Raja Nagar had been commissioned during December
2022 and February 2023 respectively.
The projects at Jayanthipuram and Haridaspur are underway and are expected to be
commissioned during the year 2023-24.
During the year under review, the Company had incurred Rs.1,765 crores towards
capital expenditure.
Financial Performance
Analysis of the Statement of Profit and Loss – Separate Financials
The summary of key components of the Statement of Profit and Loss for the financial
year 2022-23 is detailed below:
Particulars |
2022-23 |
2021-22 |
Variance |
|
|
Rs. in crores |
Rs. in crores |
Rs. in crores |
% |
Income |
|
|
|
|
| Sale of Products |
8,052.28 |
5,897.19 |
2,155.09 |
37 |
| Income from Wind power |
48.13 |
59.54 |
-11.41 |
-19 |
| Other Operating revenue |
34.86 |
23.25 |
11.61 |
50 |
| Other Income |
36.70 |
30.64 |
6.06 |
20 |
Total Income |
8,171.97 |
6,010.62 |
2,161.35 |
36 |
Operational Expenses |
|
|
|
|
| Cost of material consumed |
1,357.07 |
896.80 |
460.27 |
51 |
| Change in inventories of finished goods & work-in-progress |
-14.10 |
-6.41 |
-7.69 |
- |
| Employee Benefits Expenses |
460.00 |
456.73 |
3.27 |
1 |
| Transportation and Handling |
1,602.98 |
1,214.41 |
388.57 |
32 |
| Power and Fuel |
2,661.60 |
1,388.76 |
1,272.84 |
92 |
| Other Expenses, net of captive consumption of finished goods |
885.77 |
745.85 |
139.92 |
19 |
Total Operational Expenses |
6,953.32 |
4,696.14 |
2,257.18 |
48 |
EBITDA |
1,218.65 |
1,314.48 |
-95.83 |
-7 |
| Depreciation & Amortization Expense |
504.44 |
400.84 |
103.60 |
26 |
| Finance Costs |
240.52 |
112.40 |
128.12 |
114 |
Profit Before Tax |
473.69 |
801.24 |
-327.55 |
-41 |
| Tax Expenses |
130.15 |
-91.46 |
221.61 |
- |
Profit After Tax |
343.54 |
892.70 |
-549.16 |
-62 |
| Other Comprehensive Income |
-3.91 |
-2.65 |
-1.26 |
- |
Total Comprehensive Income |
339.63 |
890.05 |
-550.42 |
-62 |
Revenue
The total revenue surpassed Rs. 8,000 crores during the year. The company has sold
15.02 MT of cement (including dry mix) as against 11.14 MT during the previous year, with
a growth in volume of 35%. During the year, the average net realisable sale price of
cement has improved by 1%. The share of premium products in terms of volume stands at 25%
for the current year as against 22% during the previous year. The Company's strategy of
right cement for right applications yielded positive results. The company continue to
focus on this to make its brand stronger.
During the current year, the Company witnessed decrease of 4% in the net generation of
wind power from 23.25 crore units to 22.33 crore units. The revenue from wind power has
decreased by 19% when compared to previous year due to change in utility for a capacity of
16.5 MW from Sale to Board to captive use. Other Operating income increased mainly due to
recognition of grant income in respect of soft loans availed during the year at
concessional rate. Other income has increased due to increase in exchange gain, dividend
receipts and other non-operating income.
Cost of materials consumed
During the year, cost of materials consumed has increased by 51% compared to the
previous year. The main reason for increase is due to higher clinker production by 35% and
increase in cement production by 34% during the year. There was an increased inter-unit
movement of clinker to grinding plants by 30% during the year, besides increase in diesel
prices by 3% has also impacted the cost of movement. In addition, cost of materials
consumed for FY23 also reflect inflationary impact on cost of other raw materials viz. Fly
ash, Slag, Gypsum and other additives.
As a percentage of revenue, cost of materials consumed for the year under review
accounted for 16.61% as against 14.92% in the previous year.
Change in inventories of finished goods / work-in-progress
The increase in inventories of finished goods / work-in-progress was due to increase in
process inventory including clinker.
Employee Benefits Expenses
The employee cost for employees other than directors for the year increased by 6% due
to increment in the annual salaries and increase in head count from 3,326 as at 31st
March 2022 to 3,507 as at 31st March 2023. Due to improved operating leverage,
the absorption of employee benefits expenses was better. As a percentage of revenue, the
employee cost for the year under review stood at 5.63% as against 7.60% in the previous
year.
Transportation and Handling expenses
During the year, Transportation and Handling expenses increased by 32% compared to the
previous year mainly due to increase in sale volume by 35%. Besides, increase in diesel
price by 3% and levy of busy season surcharge at 15% on rail freight with effect from 1st
October 2022 has pushed up the overall transportation cost. The lead distance for the
current year for cement is 298 KMs as against 324 KMs during the previous year. The
rail co-efficient for the current year is 11% as against 13% during the previous year.
There has been an increase in handling expenses due to annual increase of labour cost
pertaining to handling of cement. As a percentage of revenue, transportation and handling
expenses for the year under review remains at 19.62% as against 20.20% in the previous
year.
Power and Fuel
During the year, power and fuel cost have increased by 92% compared to the previous
year. The main reason is, due to increase in fuel prices. During the current year, the
average index price of pet coke has increased from $ 164 in FY22 to $ 194 in FY23.
Besides, increase in clinker production by 35% and increase in cement production by 34%
resulted in higher incidence of power and fuel cost. The average increase in diesel prices
by 3% and rupee depreciation by 8% during FY23 also contributed for increase in fuel cost.
The Company uses both pet coke and coal for the kiln operations depending upon cost per
Kcal of the respective fuel. The pet coke usage increased from 40% in FY22 to 55% in FY23
whereas coal usage is reduced from 40% in FY22 to 32% in FY23.
The WHRS capacity of 27 MW in Jayanthipuram, 8 MW in Kolimigundla, 2 MW each in RR
Nagar and Alathiyur helped to contain the overall power & fuel cost. Wind power
capacity of 16.5 MW allocated to captive use from sale to board during the current year
has helped to moderate the fuel cost and carbon foot print. During the year, 56% of the
total power requirements were met from captive thermal power plants, 22% from electricity
grids and 22% from Green Power viz. Wind Power and WHRS. The Overall green power usage has
increased from 15% in FY22 to 22% in FY23.
The Profitability was significantly impacted by increase in power and fuel cost due to
elevated fuel prices during the current year. The power & fuel cost per ton of cement
has increased by Rs. 539 per ton of cement during the year. Power and fuel cost
accounted for 32.57% of revenue in FY23 as against 23.11% in the previous year.
Other expenses
Other expenses increased by Rs. 139.92 crores i.e by 19%. The packing material cost has
increased by Rs. 59.66 crores due to increase in sale volume by 35% and increase in
Insurance, Repairs & Maintenance, Stores & Spares, Rates & Taxes,
Outsourcing cost, Security charges by Rs. 29.25 crores mainly due to establishment of Line
III at Jayanthipuram, Integrated Cement Plant at Kolimigundla and Dry Mortar Plants at
Salem and R R Nagar.
Due to COVID related restrictions, previous year figures were comparatively lower with
respect to advertisement / sales promotion expenses by Rs. 19.97 crores and Traveling
expenses by Rs. 8.11 crores and other general expenses by Rs. 2.43 crores. The
company has made political contribution for Rs. 20.50 crores during the year (FY22: Nil).
Other expenses accounted for 10.84% of the revenue in FY23 as against 12.41% in FY22.
Depreciation & Amortization
Depreciation and Amortization has increased from Rs. 400.84 crores to Rs. 504.44
crores. The reason for increase is mainly due to depreciation arising out of commissioning
of integrated plant at Kolimigundla, R R Nagar Line III, Dry Mortar Plants at Salem and R
R Nagar. Besides, Amortization of Mine development under Intangible Assets has increased
by Rs. 20.36 crores due to increase in clinker production by 34%. Depreciation
& Amortization accounted for 6.17% of revenue in FY23 as against 6.67% in FY22.
Finance Costs
Finance costs have increased by 114% from Rs. 112.40 crores in FY22 to Rs. 240.52
crores in FY23 mainly due to increase in average borrowings and increase in interest rates
due to repo rate increase by 250 bps compared to previous year. The weighted average cost
of interest bearing borrowings for the current year stood at 6.66% as against 5.54% in the
previous year. The total borrowings as at 31st March 2023 has increased by Rs.
578.97 crores and stood at Rs. 4,487.42 crores. The Net Debt to EBITDA stood at 3.57 times
as against 2.88 times in the previous year.
The interest coverage ratio decreased from 4.25 times in the previous year to 2.06
times in the current year, due to reduced operating margin in view of elevated fuel
prices. The Gross interest on the borrowings for the current year was Rs. 346.44 crores
and out of which, Rs. 105.92 crores was capitalised as part of eligible qualifying assets.
Finance costs accounted for 2.94% of the revenue as against 1.87% in the previous year.
Tax Expenses
The overall effective tax rate has increased from 25.80% to 27.35% mainly due to
increase in ineligible expenditure viz. donation / CSR amounting to Rs.43.36 crores as
against Rs.24.89 crores in the previous year.
Current tax charge and deferred tax credit relating to earlier years was Rs. 1.31
crores and Rs. 0.73 crores respectively.
As per Section 115BAA of the Income Tax Act, 1961, the Company had an irrevocable
option of shifting to a lower tax rate and simultaneously forgo certain tax incentives,
deductions and accumulated MAT credit. In view of the overall tax benefits available under
the said option, the company had opted for shifting to lower tax rate from FY22 onwards.
Consequently, the company had written back the excess deferred tax provision of Rs. 305.58
crores from Deferred Tax Liability to profit and loss in the previous year.
Overall Tax expenses without considering the impact of change in tax rate during the
previous year accounted for 1.59% of the revenue in FY23 as against 3.56% in FY22.
Other Comprehensive Income (OCI)
Other comprehensive income represent loss arising out of re-measurement of defined
benefit plans, net of taxes amounting to Rs. 4.39 crores, which is mainly due to increase
in salary escalation rate assumption from 5.50% to 6% and increase in discount rate,
considering long term estimates, during the year. Fair value gain on equity investments
amounting to Rs.0.48 crores is also recognised under OCI, during the year.
Profitability
EBITDA dropped by 7% from Rs. 1,314.48 crores in FY22 to Rs. 1,218.65 crores in
FY23. EBITDA margin impacted mainly due to elevated fuel prices during the current year.
The average cement price for the year has increased marginally by 1% and it was not
sufficient to cover the fuel cost-push. The EBITDA margin for the current year stood at
14.91% as against 21.87% in the previous year. Blended EBITDA per ton have decreased by
31% from Rs. 1,190 per ton to Rs. 823 per ton.
PBT for the current year is Rs.473.69 crores as against Rs. 801.24 crores during
the previous year, with a de-growth of 41%. PAT down by 62% from Rs. 892.70 crores to Rs.
343.54 crores mainly on account of write back of deferred tax liability during the
previous year and lower operating margin for FY23. The PAT margin stood at 4.20% as
against 14.85% in the previous year.
Financial Position
Analysis of the Balance Sheet – Separate Financials
The summary of the financial position as at 31-03-2023 is detailed below:
Particulars |
2022-23 |
2021-22 |
Variance |
|
|
Rs. in crores |
Rs. in crores |
Rs. in crores |
% |
Assets |
|
|
|
|
| Non-current Assets |
12,629.50 |
11,350.95 |
1,278.55 |
11 |
| Current Assets |
1,887.39 |
1,704.56 |
182.83 |
11 |
Total Assets |
14,516.89 |
13,055.51 |
1,461.38 |
11 |
Equity & Liabilities |
|
|
|
|
| Equity |
6,793.53 |
6,524.86 |
268.67 |
4 |
| Non-current liabilities |
4,639.67 |
3,752.23 |
887.44 |
24 |
| Current liabilities |
3,083.69 |
2,778.42 |
305.27 |
11 |
Total Equity and Liabilities |
14,516.89 |
13,055.51 |
1,461.38 |
11 |
Non-current Assets
Non-current assets have increased by Rs. 1,278.55 crores due to the following reasons:
(a) The company incurred a capital expenditure of Rs. 1,765.14 crores towards
establishment of integrated unit at Kolimigundla, Line III at Ramasamy Raja Nagar, Dry
Mortar Plants in Salem, Ramasamy Raja Nagar, Odisha and Jayanthipuram besides
regular capital expenditure. This is after adjusting non-cash adjustments / accruals
viz. Depreciation of Rs. 505.39 crores (including capitalisation of depreciation of Rs.
0.95 crores) and increase in capital payables of Rs. 2.69 crores. Besides the Company
has derecognised WDV of Rs. 1.88 crores towards sale of asset during the year.
(b) The company has subscribed the rights issue of equity shares of an Associate
company viz. Rajapalayam Mills Limited, for a value of Rs.0.52 crores.
(c) The loans to subsidiaries and associates have decreased by Rs. 56.96 crores due to
loan repayment by subsidiaries / associates. The said loans carry interest at an
arms-length basis.
(d) Deposits under protest in appeals have increased by Rs. 19.97 crores and
‘Balance with Government Departments' increased by Rs. 40.31 crores for upfront
payment made to Department of Mines and Geology, Government of Karnataka for having
declared as the preferred bidder for the Bommanalli Limestone block in Kalburgi district,
Karnataka.
(e) Other non-current assets have increased by Rs. 13.20 crores mainly due to increase
in prepaid expenses and deposits with government departments and related parties.
Current Assets
Current assets increased during the year by Rs. 182.83 crores mainly due to the
following reasons:
(a) Inventories increased by Rs. 49.01 cores mainly because of increase in inventory of
pet coke due to high prices and increase in stores and spares. Inventory turnover ratio
had decreased from 44 days to 39 days due to increased turnover in FY23.
(b) Trade receivable increased by Rs. 115.19 crores.
The receivables turnover has come down from 22 days in the previous year to 18 days in
the current year due to tightened recovery measures and factoring of certain receivables
on non-recourse basis, by assigning its rights and privileges with counterparty.
(c) Unadjusted input tax credits availed under GST has decreased to the extent of Rs.
43.97 crores in view of input adjustment during the current year.
(d) Decrease in cash and bank balances by Rs. 7.45 crores and increase in claims
receivable from government / semi-government bodies by Rs. 64.65 crores.
(e) There was an increase in other current assets to the extent of Rs. 5.40 crores
mainly due to increase in prepaid expenses.
Equity
(a) There is no change in the equity share capital during the year.
(b) The total comprehensive income for the year is Rs. 339.63 crores. The
Company has paid dividend for the FY22 during the current year amounting to Rs.
70.96 crores. The Company's return on net worth decreased from 15% to 5%. The increase in
the overall cost of production and specifically the increase in the fuel cost have
contributed to the reduction in the profitability. During the previous year, there was a
write back of deferred tax liability of Rs. 305.58 crores as one off item.
Non-current liabilities
(a) Long-term Borrowings have increased by Rs. 764.87 crores, to fund the
capital expenditure for ongoing capacity expansion projects. The debt-equity ratio and Net
Debt to EBITDA stood at 0.66 times and 3.57 times respectively as at 31st March
2023 as against 0.60 times and 2.88 times as at 31st March 2022. Return on
capital employed is down from 10% to 5% mainly due to decrease in profitability. The
decline in Debt-Service Coverage Ratio from 1.35 times in previous year to 1.31 times in
current year is mainly due to relatively higher interest cost compared to previous year
amid decrease in EBITDA by 7% on account of increase in power and fuel cost compared to
previous year.
(b) Deferred Tax Liabilities increased by Rs. 104.47 crores due to recognition
of temporary differences of Rs. 105.20 crores and tax credit adjustments of earlier
years of Rs. 0.73 crores.
(c) Provisions have increased by Rs. 12.09 crores due to increase in provision for
mines restoration obligation. Other liabilities have increased by Rs. 6.01 crores mainly
due to recognition of deferred grant in respect of soft loans availed during the year at
concessional rate for Rs. 22.37 crores and further offset by recognition of grant income
by Rs. 15.13 crores, incremental classification of current portion of deferred government
by Rs. 1.13 crores and lease liability reduction by Rs. 0.10 crores in respect of
Right-of-Use Asset for non-cancellable leases adjusted for lease payments and interest on
liability.
Current liabilities
(a) Short-term Borrowings other than current maturities of long-term borrowings
decreased by Rs. 26.73 crores.
(b) Current maturities of long-term borrowings decreased by Rs. 180.67 crores, which is
due within one year as per repayment schedule.
(c) Security deposits from customers / Customer's credit balance with customers
have increased by Rs. 305.58 crores mainly because of increase in customer deposits and
accruals of customer rebates available for adjustment in subsequent periods.
(d) Trade payables increased by Rs. 153.67 crores because of negotiation of better
credit terms with suppliers and supplier financing facility through reverse factoring
arrangement for early payments to suppliers. Consequently, the average payable days has
decreased marginally from 26 days in previous year to 25 days in current year.
(e) Statutory liabilities increased by Rs. 51.05 crores mainly due to increased sale
volume in the month of March 2023 compared with sale in the month of March 2022.
(f) Provisions increased by Rs. 3.07 crores due to increase in provision for
compensated absences by Rs. 5.08 crores which is offset by decrease in provision for
disputed income tax liabilities by Rs. 2.01 crores towards liability provided based on
recent assessment orders.
(g) Other liabilities decreased by Rs. 0.70 crores mainly due to decrease in financial
guarantee obligation upon repayment of borrowings by the related party and decrease in
book overdraft.
(f) Current ratio for the year stood at 1.08 times as against 1.14 times during the
previous year.
Analysis of the Cash flows – Separate Financials
The summary of the Cash flows for the year ended 31-03-2023 is given below:
(Rs. in crores)
Particulars |
31-03-2023 |
31-03-2022 |
| Net cash flows from Operating Activities |
1,405.00 |
1,129.05 |
| Net cash flows used in Investing Activities |
(1,686.93) |
(1,810.31) |
| Net cash flows from Financing Activities |
274.48 |
715.44 |
Net increase/(decrease) in cash & cash equivalents |
(7.45) |
34.18 |
Net cash flows from Operating Activities
Net cash flows from operating activities increased mainly due to improved operating
leverage.
Net cash flows used in Investing Activities
Net cash flows used in investing activities is mainly for Capex incurred towards
establishment of integrated unit at Kolimigundla, Line III at Ramasamy Raja Nagar, Dry
Mortar Plants in Salem, Ramasamy Raja Nagar, Odisha and Jayanthipuram and general capex.
Net cash flows from Financing Activities
Net cash flows from Financing Activities represent net proceeds from borrowings for
funding capex programs and payment of interests, dividend and lease liabilities.
Movement in Key Financial Ratios
Particulars |
UOM |
31-03-2023 |
31-03-2022 |
Variation in % |
Formula adopted |
What does it signify |
Debtors Turnover Ratio |
Days |
18 |
22 |
-18 |
365 Days / (Net Revenue from sale of products / Average Trade
Receivables) |
It indicates the average collection period and measures the efficiency
of the company in managing its accounts receivables |
Inventory Turnover Ratio |
Days |
39 |
44 |
-11 |
365 Days / (Net Revenue from sale of products / Average Inventories) |
It indicates the average inventory holding period and measures the
efficiency with which the company utilizes or managing its inventory |
Interest Coverage Ratio |
Times |
2.06 |
4.25 |
-52 |
(Profit before Tax + Interest) / (Gross Interest) |
It indicates the company's ability in terms of earnings to meet the
interest obligations |
Current Ratio |
Times |
1.08 |
1.14 |
-5 |
Current Assets / (Total Current Liabilities - Security Deposits
payable on demand - Current maturities of Long term debt) |
It indicates the level of current assets to meet the current
liabilities |
Debt-Equity Ratio |
Times |
0.66 |
0.60 |
10 |
Total Debt / Total Equity |
It indicates the measure to which the Company is financing its
operations through debt versus shareholders' funds |
Operating Profit Margin |
% |
15 |
22 |
-7 |
EBITDA / Net Revenue |
It indicates the percentage of profit after all expenses except for
interest, depreciation and taxes on the total revenue |
Net Profit Margin |
% |
4 |
15 |
-11 |
Net Profit / Net Revenue |
It indicates the percentage of profit after all expenses including
interest, depreciation and taxes on the total revenue |
Return on Networth |
% |
5 |
15 |
-10 |
Total Comprehensive Income / Average Net worth |
It indicates the percentage of return generated to equity shareholders |
Net Debt / EBITDA |
Times |
3.57 |
2.88 |
24 |
(Total Debt - Cash and Cash equivalents) / EBITDA |
It indicates the relevance of company's operating income to its debt |
Return on Capital employed |
% |
5 |
10 |
-5 |
(Total Comprehensive Income + Interest) / Average of (Equity + Total
Borrowings) |
It indicates the percentage of return generated on equity capital and
debt capital |
Price Earnings Ratio |
Times |
52 |
20 |
160 |
Market Price per share / Earnings per share |
It indicates the relevance of the company's share price to the
earnings per share. |
Blended EBITDA per Ton |
In Rs. |
823 |
1,190 |
-31 |
EBITDA / Sale Volume |
It indicates the operating profit per ton of cement sold |
Debt Service Coverage Ratio |
Times |
1.31 |
1.35 |
-3 |
(EBITDA - Current Tax) / (Principal repayment excluding repayments
towards debt replacement + Gross Interest) |
It indicates the availability of operating profit to pay its current
maturities of debts and interest obligations |
Reasons for variations in excess of ? 25%
(a) The decline in Interest Service Coverage Ratio by 52% due to increase in borrowings
for funding capex towards capacity expansion projects amid increase in interest rate owing
to repo rate hike
(b) PE Ratio increased due to decrease in profitability on account of elevated fuel
prices during FY23
(c) Blended EBITDA per Ton decreased mainly due to increase in power and fuel cost per
ton from Rs. 1,257/- in previous year to Rs. 1,796/- in current year
Human Resources
At Ramco, our people are our greatest asset and we believe that in our roadmap for
building the future, employee involvement is crucial to be continually creative and drive
organizational excellence.
Our organizational excellence depends on the quality of people employed. Therefore, we
focus on the culture of recognition, innovation in technology, engagement of right people
for the right job and process improvements. Our company's ethics, principles and ideals
have fostered a positive work culture among the employees.
Talent Acquisition
The company believes in maintaining a lean organisation to ensure optimum utilisation
of manpower. Also, we have created various recruitment strategies in order to attract the
best talent from the market and to retain our top performers and high potentials. Our
robust talent acquisition mechanism including a software in the talent acquisition domain
helped us to attract the right candidates in consonance with the culture of our
organisation.
Performance Management System (PMS)
Our company introduced an objective based PMS three decades back, which is used for
rewarding the high performing people and also for the development of people. Counselling
is one of the key feature of our PMS, which ensures proper performance dialogue between
the appraiser and appraisee and it provides a platform for better understanding between
employees and superiors.
All our Training needs are captured in PMS portal during the Annual performance
appraisal and subsequently our training calendar is rolled out for the year to impart
continuous learning and development programmes for the employees. Our PMS system also
ensures fair remuneration to all employees which encourages them to demonstrate their full
potential.
Learning and Development
Our Company holds robust talent development strategies to keep the workforce equipped
to face any kind of challenges in this VUCA world. Also we focus on developing the talent
through various modes of training in the areas of Behavioural, Functional, Organisational,
Work Life Balance and Safety. Our company not only plans and implements the development
strategies but also encourages employees to come up with suggestions in nominating them
for the trainings required.
Leadership Development Programmes
Short term and Long term Leadership development programmes are conducted in association
with external agencies like KoeN Meta Consulting, Pune, Flame University, Pune and quite a
lot of In-House programs through external faculties to unleash and enrich the potential of
the leadership team. Systems are deployed to track and analyse the training programs
across the organisation. We conduct various modes of training like direct interactive
sessions and virtual sessions that are focussed to improve the emotional, social and
physical well-being of our employees.
Welfare Policies
Our Company is equipped with various employee-centric welfare policies that are curated
from time to time like housing loan, asset building loan and various other soft loans not
only for the welfare of employees but also for their families. Ramco has holistic medical
approach when it comes to health of employees. We have provided Group Medical Insurance to
cater medical needs of our employees and their family members, Group Personal Accident
Scheme and Group term Policy to cover the life of employees.
Employee Engagement Initiatives
At Ramco, Employee Engagement initiatives like 5S, Quality circles, IMS, suggestion
scheme and KAIZEN has been institutionalized. Engagement activities are conducted at Unit
level to celebrate festivals and events, which includes sports, cultural and spiritual
programs.
Digitalisation
Ramco's ERP - Human Capital Management module, has been developed and implemented
successfully across the company integrating all the HR functions. In addition, the Company
has developed many standalone applications as add on to this software like HR Dash board,
Statutory Compliances, HR audit, Contract Labour Management System, RAMCONNECT (Employee
Portal), HR Kiosk, Cementor – Mentor – Mentee and E-suggestions.
Retention
The company's employee oriented policies, transparent working atmosphere, encouraging
innovation, excellent digital environment, performance based reward system, high quality
work place practices, opportunities to uphold good work life balance and HR excellence go
a long way in consistently maintaining the employees retention ratio of above 90% which
substantiate that we remain employee-centric in all our practices.
Employee Recognition
The senior leaders in the organisation who have been working with the Company for more
than 3 decades exhibits our successful career progression of our internal talents.
Additionally, company values the employee's esteemed years of association with Long
Service Awards to recognise and create sense of belongingness. Last year, we felicitated a
huge count of 425 employees with Long Service Awards which remains on top in the past 16
years.
Risk Management Policy
Pursuant to Section 134(3)(n) of the Companies Act, 2013 and Regulation 17(9) of LODR,
the Company has developed and implemented a Risk Management Policy. The Policy envisages
identification of risk and procedures for assessment and strategies to mitigate /
minimisation of risk thereof. The Risk Management Policy of the Company is available at
the Company's website, at the following weblink
–https://www.ramcocements.in/investors/codes-and-policies
Risk Management
The Company's risk management system is designed to identify the potential risks that
can impact the business and device a framework for its mitigation along with periodical
reviews to reflect changes in market conditions and the Company's activities. The
Company's Board of Directors has the overall responsibility for the establishment and
oversight of risk management framework. The Audit committee and Risk management committee
periodically review the execution of risk management plan and advice the management
wherever necessary. The key risks and their mitigation measures are detailed below:
Key Risk |
Mitigation measures |
Fuel availability risk |
|
The Company uses non-calcined petroleum coke, a
downstream by-product of the oil refinery, as fuel for cement kiln. It is available from
indigenous sources as well as from Middle East, USA & Venezuela, thus exposing the
risk of availability |
The Company adopts both structured and unstructured
procurement strategies to mitigate the risk. It has long-term fuel supply arrangements
with manufacturers under structured plan and also procures from spot or open markets
during favourable pricing conditions to stay dynamic in fluctuating market. The Company
uses non-coking or thermal coal as a fuel at its captive thermal power plants (TPP). It is
mainly imported from Indonesia, the world's largest exporter of coal, on spot basis. The
Company's plants, being close to the East Coast, ensures proximity to Indonesia, making it
economical to import. The Company also imports coal from Russia. |
|
In case of supply disruption of imported coal, the
Company can choose alternates from indigenous sources or use lignite. Besides, the
Company's production process is fungible and supports usage of different types of fuels
like pet coke, coal, lignite and other alternate fuels; it facilitates the usage of most
economical fuel. The Company also commissioned waste heat recovery plants to produce power
which is helping to reduce overall power costs while insulating from the overall risks on
fuel. The Company has started steps to switch over to green power generated from its
windmills which are presently connected to grid. |
Limestone Reserve / Expiration Risk |
|
The Indian cement industry is prone to limestone shortage risk since
limestone is the prized resource. Reserve degradation, deeper mining may raise the mining
cost / operating cost for the industry in the upcoming period. |
The Company has sufficient reserve base in south with long mine life.
The Company also participates in auction to bid the additional reserves at the low auction
premium. |
Commodity price risk |
|
Commodity price risk arises on account of fluctuations in
price of raw materials and fuels viz. coal and pet coke, which are linked to various
external factors. Since these are primary costs in cement production, any adverse
fluctuation in these prices can lead to significant drop in operating profitability. |
To mitigate this risk, the Company closely observes the
prices and buy when the prices tend to come down and also taken steps to maintain three to
four months inventory to beat the impact of upward cycle of commodity index by setting
high re-order levels to cushion on price volatility to some extent, usage of other
alternate fuels and optimum fuel mix to manage fuel cost. The Company also enters into
long term contracts with suppliers at competitive prices. These processes and procedures
are reviewed by the management at regular intervals and measures have been taken to curb
the risk. |
Currency fluctuation risk |
|
The Company has exposure to USD and other foreign currency denominated
transactions for import of capital goods, spares and fuel, besides exports of finished
goods and borrowings in foreign currency. Any unfavourable movement in currency prices can
impact profitability. |
The Company has policies to ensure that the decisions are driven to
keep the cost comparable while borrowing in foreign currency and hedging thereof, both
interest and exchange rate risk and the quantum of coverage. The Company practices hedging
foreign currency loans, imports and exports transactions by forward contracts after taking
into consideration the anticipated foreign exchange inflows/outflows, timing of cash
flows, tenure of the forward contract and prevailing foreign exchange market conditions |
Market risk |
|
The cement industry is prone to the innate risk of demand supply
mismatch. So, cement is susceptible to the price volatility, which sometimes slips to
unviable levels. |
The Company prudently plans and establishes its cement plants and
grinding units in markets where demand-supply conditions are relatively favourable. Its
strategy of segmenting the market by offering right products for right applications
facilitates in creating niche markets. |
|
The Company also strongly focusses on creating loyalty among the
customers by offering high quality, value-added products backed by innovative R&D and
efficient supply chain. Regular branding activities are undertaken with deployment of
technical services for customer support and education. |
Information Technology Risk |
|
The Company's operations are completely dependent on IT
systems, which requires careful management of the information that is in our possession to
ensure data privacy. The cyberattack threat of unauthorised access and misuse of sensitive
information or disruption to operations continue to increase across the world. Such an
attack would affect the business operations in a number of ways, including disruption to
sales, production and cash flows, ultimately impacting our results. |
To reduce the impact of cyberattack on our business, we
have firewalls and threat monitoring systems in place, with immediate response
capabilities to mitigate identified threats. The Company also maintains a system for the
control and reporting of access to our critical IT systems, which is supported by a
periodical testing of access controls. The Company has IT security policy covering the
protection of both business and personal information, as well as the use of IT systems and
applications by our employees. The hardware that runs and manages core-operating data is
fully backed up in satellite locations with separate systems to provide real-time backup
operations. |
Interest rate Risk |
|
Interest rate risk arises from long-term borrowings with
variable rates, which exposed the company to cash flow interest rate risk. The Company's
fixed rate borrowing are carried at amortized cost and therefore are not subject to
interest rate risk as defined in Ind AS 107 since neither the carrying amount nor the
future cash flows will fluctuate because of the change in market interest rates. The
Company is exposed to the evolution of interest rates and credit markets for its future
refinancing, which may result in a lower or higher cost of financing. |
This risk is addressed through the management of the
fixed/floating ratio of financial liabilities. The Company constantly monitors credit
markets to strategize a well-balanced maturity profile in order to reduce both the risk of
refinancing and large fluctuations of its financing cost. The Company believes that it can
source funds for both short term and long term at a competitive rate considering its
strong fundamentals on its financial position and better credit ratings. |
Liquidity Risk |
|
Liquidity Risks are those risk that the Company will not be able to
settle or meet its obligations on time or at reasonable price. |
Liquidity risk is mitigated through financial planning and analysis,
forecasting cash flows regularly, monitoring and optimizing net working capital and
managing existing credit facilities. Monitoring and optimizing working capital is achieved
through tightened control measures in collection of receivables, negotiation of credit
periods with suppliers, maintain adequate inventory based on business requirements and
thereby maintaining a level of cash and cash equivalents deemed adequate to finance the
company's operations. |
|
Due to the dynamic nature of the underlying business, the Company
maintains flexibility in funding by keeping both committed and uncommitted credit lines
available. The Company has laid well- defined policies and procedures facilitated by
robust information system for timely and qualitative decision making by the management
including its day-to-day operations. |
Credit Risk |
|
Credit Risk is the risk of financial loss to the Company
if the customer or counterparty to the financial instruments fails to meet its contractual
obligations and arises principally from the Company's receivables, treasury operations and
other operations that are in the nature of lease. The Company's exposure to credit risk is
influenced mainly by the individual characteristic of each customer. The Company extends
credit to its customers in the normal course of business by considering the factors such
as financial reliability of customers. The Company evaluates the concentration of the risk
with respect to trade receivables as low, as its customers are located in several
jurisdictions and operate in largely independent markets. |
The Company maintains adequate security deposits from its
customers in case of wholesale and retail segment. In case of institutional segment,
credit risks are mitigated by way of enforceable securities. The exposures with the
Government are generally unsecured but they are considered as good. However, unsecured
credits are extended based on creditworthiness of the customers on case-to-case basis.
Besides insurance cover for credit risk is taken to mitigate the possible open risk. Trade
receivables are written off when there is no reasonable expectation of recovery, such as a
debtor declaring bankruptcy or failing to engage in a repayment plan with the company and
where there is a probability of default, the company creates a provision based on Expected
Credit Loss for trade receivables under simplified approach. |
Logistics Risk |
|
(a) Road Movement |
|
With the increase in the crude oil prices, diesel prices are likely to
go up further. For every Re.1/- increase in the diesel cost, our road freight increases by
Rs. 7/- PMT. Besides, with the laying of new roads for faster movement, more number of
toll plazas are being added resulting in increase in the cost of transportation. |
We are using alternate fuel oil for heavy vehicles used in mines. As
the availability of these oils is restricted, we use these oils to the extent they are
available. In addition, since the tolls are installed for maintenance of roads, these
additional costs can be partly offset in the transportation rates in view of higher
throughput. |
(b) Rail Movement |
|
The last rail freight revision was implemented during 2015 and with
the huge increase in the fuel prices; there could be another upward revision in the rail
freights in the near future. For every 1% increase in the rail freight, our additional
impact would be Rs. 3 crores per annum. |
We shall evaluate other alternate logistics models, such as coastal
shipping, road movements, etc. |
Marketing Risk |
|
Cement industry is a highly competitive industry, especially in South
India. This is primarily because of the predominance of lime stone availability in south
and consequently, more manufacturing capacities have sprung up. As cement is logistics
sensitive and therefore, cannot be carted long distances, the capacities tend to get
marketed in south India. |
Branding, Right product for Right application and continuous
engagement with all segments of construction industry by our MACE team is helping us get
the edge over competition. |
Human Resource Risk |
|
Loss of key employees due to resignation or retirement,
overstaffing / understaffing, higher attrition rate, inadequate training for employees,
employee wellness, and disturbances in industrial relations are identified as the key risk
factors in human resource |
Human Resource risk is mitigated by forecasting annual
manpower to hire right people at right time. Various retention methodologies are followed
like employee friendly benefits like extending loan schemes, transfer option to preferred
location in genuine cases, Group Medical Insurance and Group Personal Accident Insurance
Scheme and buffer scheme. Training programmes are conducted to employees based on
functional roles. Periodic Wellness sessions on health related topics are being conducted
with expert doctors from reputed hospitals. Maintaining cordial relationship with Unions,
local leaders and carrying out CSR projects relevant to the local needs have ensured that
there were no loss of man-days due to such disturbances. |
Subsidiary Companies
The Company has two subsidiaries, viz. Ramco Windfarms Limited and Ramco Industrial and
Technology Services Limited.
The Company has no material subsidiaries.
Ramco Windfarms Limited (RWL)
The Share Capital of RWL is Rs. 1 crore, out of which 71.50% is held by the Company.
The rest of the share capital is held by Ramco Group of Companies.
The installed capacity of RWL was 39.835 MW as on 31-03-2023 comprising of 127
Wind Electric Generators.
The Company had generated 331.27 lakh units of power as compared to 333.65 lakh units
of power during the previous year.
The revenue and profit after tax for the Company for the year ended 31-03-2023 were Rs.
13.51 crores and Rs. 2.25 crores compared to Rs. 13.41 crores and Rs. 2.29 crores
respectively of the previous year. The Total Comprehensive Income of the Company for the
year is Rs. 2.25 crores as against Rs. 2.29 of the previous year.
Ramco Industrial and Technology Services Limited (RITSL)
The Share Capital of RITSL is Rs. 4.78 crores, out of which 94.11% is held by the
Company. The rest of the share capital is held by Ramco Group of Companies.
The Company provides Transport services, Manpower services and Information Technology
related services, mainly involving Software Implementation services.
The revenue of the Company for the year ended 31-03-2023 on standalone basis was
Rs. 40.13 crores as against Rs. 40.47 crores for the previous year. The Company had
incurred a loss after tax of Rs. 3.65 crores as against the loss of Rs. 1.86 crores for
the previous year. The Total Comprehensive Income of the Company for the year is Rs.
(3.85) crores as against Rs. (2.01) of the previous year.
In accordance with Rule 5 of Companies (Accounts) Rules, 2014, a statement containing
the salient features of the Financial Statements of the Subsidiaries and Associates is
attached in Form AOC-1 as Annexure-1.
In accordance with Regulation 46(2)(s) of LODR, separate audited financial statements
of the above subsidiary companies are placed in the website of the Company.
Consolidated Financial Statements
The Company has 5 Associate Companies, viz. Rajapalayam Mills Limited, Ramco
Industries Limited, Ramco Systems Limited, Lynks Logistics Limited and Madurai
Trans Carrier Limited.
As per provisions of Section 129(3) of the Companies Act, 2013 and Regulation 34 of
LODR, Companies are required to prepare a consolidated financial statement of the Company
and of all the Subsidiaries and Associate Companies, which shall also be laid before the
Annual General Meeting of the Company.
Accordingly, the consolidated financial statements incorporating the accounts of
Subsidiary Companies and Associate Companies, along with the Auditors' Report thereon,
forms part of this Annual Report.
As per Section 136(1) of the Companies Act, 2013, the financial statements including
consolidated financial statements are available at the Company's website at the following
link https://www.ramcocements.in/investors/financials
Separate audited accounts in respect of the subsidiary companies are also made
available at the Company's website. The Company will provide a copy of separate audited
financial statements in respect of its Subsidiary Companies to any shareholder of the
Company who asks for it.
The consolidated net profit after tax of the Company amounted to Rs. 314.52 crores for
the year ended 31-03-2023 as compared to Rs. 881.48 crores of the previous year.
The consolidated total comprehensive income for the year ended 31-03-2023 was Rs.
313.43 crores as against Rs.878.88 crores of the previous year.
Directors
Pursuant to Rule 8(5)(iii) of Companies (Accounts) Rules, 2014, it is reported that,
there have been no changes in the Directors and Key Managerial Personnel during the year
under review and after the end of the year and upto the date of the report.
SEBI had brought in amendments in LODR Regulations for separation of the roles of
Non-executive Chairperson & Managing Director, which is considered to be one of the
highest standards of Corporate Governance. However, companies were given an option to
adopt this provision on voluntary basis. To ensure greater Corporate Democracy and in
order to have a better and more balanced governance structure and for providing a
structural advantage for the board to act independently, the Board of Directors at their
meeting held on 23-05-2022 had unanimously decided to separate the two posts and elected
Shri.M.F.Farooqui, IAS (Retd.), Independent Director, as the Chairman of the Board of
Directors, effective from 04-06-2022.
Based on the recommendations of Nomination and Remuneration Committee, the Board of
Directors have re-appointed Shri.P.R.Venketrama Raja as Managing Director for a period of
5 years starting from 04-06-2022. His re-appointment was approved by way of a Special
Resolution at the AGM held on 10-08-2022. His reappointment consequent to retirement by
rotation has been included as an Ordinary Resolution, in the Notice convening the AGM
scheduled to be held on 10-08-2023.
The Independent Directors hold office for a fixed term of 5 years from the date of
their appointment and are not liable to retire by rotation.
The Company has received necessary declarations from all the Independent Directors
under Section 149(7) of the Companies Act, 2013, that they meet the criteria of
independence as provided in Section 149(6) of the Companies Act, 2013. Independent
Directors have complied with the Code for Independent Directors prescribed in Schedule IV
of the Companies Act, 2013.
The Company had formulated a Code of Conduct for the Directors and Senior Management
personnel and the same has been complied with.
The Company has a policy relating to appointment and remuneration of Directors, Key
Managerial Personnel and other employees duly approved by the Board of Directors, based
upon the recommendation of Nomination and Remuneration Committee, in accordance with
Section 178(3) of the Companies Act, 2013.
As per Proviso to Section 178(4) of the Companies Act, 2013, the salient features of
the Nomination and Remuneration Policy should be disclosed in the Board's Report.
Accordingly, the following disclosures are given:
Salient Features of the Nomination and Remuneration Policy:
The objective of the Policy is to ensure that:
(a) the level and composition of remuneration is reasonable and sufficient to attract,
retain and motivate directors of the quality required to run the company successfully;
(b) relationship of remuneration to performance is clear and meets appropriate
performance benchmarks; and
(c) remuneration to directors, key managerial personnel and senior management involves
a balance between fixed and incentive pay reflecting short and long-term performance
objectives appropriate to the working of the company and its goals.
The Nomination and Remuneration Committee and this Policy are in compliance with the
Companies Act, 2013 and LODR. The web address of the Policy is
–https://www.ramcocements.in/investors/codes-and-policies
As required under Regulation 25(7) of LODR, the Company has programmes for
familiarisation for the Independent Directors about the nature of the industry, business
model, roles, rights and responsibilities of Independent Directors and other relevant
information. As required under Regulation 46(2)(i) of LODR, the details of the
Familiarisation Programme for Independent Directors are available at the Company's
website, at the following link –https://www.ramcocements.in/investors/management
The details of familiarisation programme are explained in the Corporate Governance
Report also.
Board Evaluation
Pursuant to Section 134(3)(p) of the Companies Act, 2013, and Regulation 25(4) of LODR,
Independent Directors have evaluated the quality, quantity and timeliness of the flow of
information between the Management and the Board, performance of the Board as a whole and
its Members and other required matters.
Pursuant to Schedule II, Part D of LODR, the Nomination and Remuneration Committee has
laid down evaluation criteria for performance evaluation of Independent Directors, which
is based on attendance, expertise and contribution brought in by the Independent Director
at the Board and Committee Meetings, which shall be taken into account at the time of
reappointment of Independent Director.
Pursuant to Regulation 17(10) of LODR, the Board of Directors have evaluated the
performance of Independent Directors and observed the same to be satisfactory and their
deliberations beneficial in Board / Committee meetings.
Pursuant to Regulation 4(2)(f)(ii)(9) of LODR, the Board of Directors have reviewed and
observed that the evaluation framework of the Board of Directors was adequate and
effective.
The Board's observations on the evaluations for the year under review were similar to
their observations for the previous year. No specific actions have been warranted based on
current year observations.
The Company would continue to familiarise its Directors on the industry, technology and
statutory developments, which have a bearing on the Company and the industry, so that
Directors would be effective in discharging their expected duties.
Meetings
During the year, 5 Board Meetings were held. The details of Meetings of the Board and
Committees held during the financial year including the number of Meetings attended by
each Director are given in the Corporate Governance Report.
Secretarial Standards
The Directors have devised proper systems to ensure compliance with the provisions of
all applicable Secretarial Standards and that such systems are adequate and operating
effectively.
Public Deposits
The Company has stopped accepting deposits from 01-04-2014 and have repaid /
transferred to IEPF the deposits as the case may be and no deposit amount is pending with
the company.
Orders Passed by Regulators
Pursuant to Rule 8(5)(vii) of Companies (Accounts) Rules, 2014, it is reported that, no
significant and material orders have been passed by the Regulators or Courts or Tribunals,
impacting the going concern status and Company's operations in future.
Internal Financial Controls
In accordance with Section 134(5)(e) of the Companies Act, 2013, the Company has
Internal Financial Controls by means of Policies and Procedures commensurate with the size
& nature of its operations and pertaining to financial reporting. In accordance with
Rule 8(5)(viii) of Companies (Accounts) Rules, 2014, it is hereby confirmed that the
Internal Financial Controls are adequate with reference to the financial statements.
Particulars of Loans, Guarantees and Investments
Pursuant to Section 186(4) of the Companies Act, 2013, the details of loans, guarantees
and investments along with the purposes are provided under Notes No. 12, 14, 21 and 49 of
Notes to the Separate Financial Statements.
Audits Statutory Audit
The Members at the Annual General Meeting held on 10-08-2022 have appointed
M/s.Ramakrishna Raja And Co., Chartered Accountants, (FRN: 005333S) and M/s.SRSV &
Associates, Chartered Accountants, (FRN: 015041S), as the Statutory Auditors of the
company for their second term of five years from the conclusion of the 64th
Annual General Meeting, till the conclusion of the 69th Annual General Meeting
of the Company.
In accordance with Regulation 33(1)(d) of SEBI (LODR) Regulations, 2015, the auditors
have submitted the necessary certificates issued by Peer Review Board of the Institute of
Chartered Accountants of India.
The report of the Statutory Auditors for the year ended 31st March 2023 does
not contain any qualification, reservation or adverse remark. No fraud has been reported
by the Company's Auditors.
Cost Audit
As per Rule 3 of Companies (Cost Records and Audit) Rules, 2014, the Company is
required to maintain cost records and accordingly such records and accounts are made and
maintained.
The Board of Directors had approved the appointment of M/s. Geeyes & Co., Cost
Accountants as the Cost Auditors of the Company to audit the Company's Cost Records for
the year 2023-24 at a remuneration of Rs.6,50,000/- (Rupees Six lakhs fifty thousand only)
exclusive of GST and out-of-pocket expenses.
The remuneration of the cost auditor is required to be ratified by the members in
accordance with the provisions of Section 148(3) of the Companies Act, 2013 and Rule 14 of
Companies (Audit and Auditors) Rules, 2014. Accordingly, the matter relating to their
remuneration had been included in the Notice convening the 65th Annual General
Meeting scheduled to be held on 10-08-2023, for ratification by the Members.
The Cost Audit Report for the financial year 2021-22 due to be filed with Ministry of
Corporate Affairs by 01-09-2022, had been filed on 25-08-2022. The Cost Audit Report for
the financial year 2022-23 due to be submitted by the Cost Auditor within 180 days from
the closure of the financial year will be filed with the Ministry of Corporate Affairs,
within 30 days thereof.
Secretarial Audit
M/s.S.Krishnamurthy & Co., Company Secretaries, have been appointed to conduct the
Secretarial Audit of the Company. Pursuant to Section 204(1) of the Companies Act, 2013,
the Secretarial Audit Report submitted by the Secretarial Auditors for the year ended 31st
March 2023 is attached as Annexure-2. The report does not contain any qualification,
reservation or adverse remark.
Annual Return
The Annual Return for the year ended 31st March 2022 in Form MGT-7, filed
with Ministry of Corporate Affairs, is available in the Company's website at the following
link: https://www.ramcocements.in/investors/shareholders
Corporate Governance
The Company has complied with the requirements regarding Corporate Governance as
stipulated in LODR. As required under Schedule V(C) of LODR, a Report on Corporate
Governance being followed by the Company is attached as Annexure-3
No complaints had been received pertaining to sexual harassment, during the year under
review. The relevant statutory disclosure pertaining to the Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act, 2013, are available at Point
No.10(l) of Corporate Governance Report.
As required under Schedule V(E) of LODR, a Certificate from the Secretarial Auditors
confirming compliance of conditions of Corporate Governance is also attached as
Annexure-4.
As required under Regulation 34(3) read with Schedule V Para C (10)(i) of LODR,
Certificate from the Secretarial Auditor that none of the Company's Directors have been
debarred or disqualified from being appointed or continuing as Directors of Companies, is
enclosed as Annexure-5.
Corporate Social Responsibility
In terms of Section 135 and Schedule VII of the Companies Act, 2013, the Board of
Directors have constituted a Corporate Social Responsibility (CSR) Committee and adopted a
CSR Policy which is based on the philosophy that "As the Organisation grows, the
Society and Community around it also grows."
The Annual Report on CSR activities as prescribed under Companies (Corporate Social
Responsibility Policy) Rules, 2014 is attached as Annexure–6.
Vigil Mechanism / Whistle Blower Policy
In accordance with Section 177(9) and (10) of the Companies Act, 2013 and Regulation 22
of LODR, the Company has established a Vigil Mechanism and has a Whistle Blower Policy.
The Policy provides the mechanism for the receipt, retention and treatment of complaints
and to protect the confidentiality and anonymity of the stakeholders. The complaints can
be made in writing to be dropped into the Whistle Blower Drop Boxes or through E-Mail to
dedicated mail IDs. The Corporate Ombudsman shall have the sole access to these. The
Policy provides to the complainant access to the Chairman of the Audit Committee. The
weblink for the Vigil Mechanism is disclosed in the Corporate Governance Report.
Related Party Transactions
Prior approval / omnibus approval is obtained from the Audit Committee for all Related
Party Transactions and the transactions are also periodically placed before the Audit
Committee for its approval. The details of contracts required to be disclosed in Form
AOC-2 are given in Annexure-7.
No transaction with the related party is material in nature, in accordance with
Company's "Related Party Transaction Policy" and Regulation 23 of LODR. In
accordance with Ind AS-24, the details of transactions with the related parties are set
out in the Notes to the Financial Statements.
As required under Regulation 46(2)(g) of LODR, the Related Party Transaction Policy is
disclosed in the Company's website and its weblink is
–https://www.ramcocements.in/investors/codes-and-policies
As required under 46(2)(h) of LODR, the Company's Material Subsidiary Policy is
disclosed in the Company's website and its weblink is
–https://www.ramcocements.in/investors/codes-and-policies
Material Changes since 1st April 2023
There have been no material changes affecting the financial position of the Company
between the end of the financial year and till the date of this report.
Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo
Pursuant to Section 134(3)(m) of the Companies Act, 2013 and Rule 8(3) of Companies
(Accounts) Rules, 2014, the information relating to Conservation of Energy, Technology
Absorption and Foreign Exchange Earnings and Outgo is attached as Annexure-8.
Particulars of Employees and Related Disclosures
The disclosure with respect to remuneration as required under Section 197 of the
Companies Act, 2013, read with Rule 5(1) of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014 is attached as Annexure-9.
The statement containing names of the top ten employees in terms of remuneration drawn
and the particulars of employees as required under Section 197(12) of the Companies Act,
2013, read with Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014, is provided in a separate Annexure forming part of this
report.
However, the annual report is being sent to the Members, excluding the aforesaid
Annexure. In terms of Section 136 of the Companies Act, 2013, the said Annexure is open
for inspection. Any Member interested in obtaining a copy of the same may write to the
Company Secretary.
Employee Stock Option Scheme
At the Annual General Meeting held on 03-08-2018, the Members had approved the
following Employee Stock Option Schemes.
Name of the Scheme |
Total No. of Options |
Exercise Price |
Vesting Period |
Maximum Term |
Source |
ESOS 2018 – Plan A |
5,00,000 |
Rs. 1/- per share |
One year from |
31st December of the immediately succeeding |
Primary |
| ESOS 2018 – Plan B |
7,00,000 |
Rs. 100/- per share |
the date of grant |
Financial Year, in which the vesting was done. |
|
The purpose of this plan is to facilitate Eligible Persons (Employees with Long Service
and Contributed to the growth of the Company) through ownership of Shares of the Company
to participate and gain from the Company's performance, thereby acting as a suitable
reward. Participation in the ownership of the Company, through share based compensation
schemes will be a just reward for the employees for their continuous hard work, dedication
and support, which has led the Company to be what it is today.
The Plan is intended to:
Create a sense of ownership within the organisation;
Encourage Employees to continue contributing to the success and growth of the
organisation;
Retain and motivate Employees;
Encourage Eligible Persons to align their performance with Company objectives;
Reward Eligible Persons with ownership in proportion to their contribution;
Align interest of Eligible Persons with those of the organisation.
The schemes are in compliance with the SEBI Regulations. During the year under review,
no material changes have been made in the schemes.
The relevant disclosures in terms of Rule 12 of Companies (Share Capital and
Debentures) Rules, 2014 and Secretarial Standard on Report of the Board of Directors are
given below:
Details of Movement of Employee Stock Options during the year:
Sl. No |
Particulars |
ESOS 2018 – Plan A |
ESOS 2018 – Plan B |
| (a) |
Number of options granted during the year |
Nil |
Nil |
| (b) |
Number of options vested during the year |
Nil |
Nil |
| (c) |
Number of options exercised during the year |
Nil |
Nil |
| (d) |
Number of shares arising as a result of exercise of options |
Nil |
Nil |
| (e) |
Number of options lapsed during the year |
Nil |
Nil |
| (f) |
Exercise Price |
Rs.1/- |
Rs.100/- |
| (g) |
Variation of terms of options |
Nil |
Nil |
(h) |
Money realized by exercise of options (INR), if scheme is implemented
directly by the Company |
Nil |
Nil |
| (i) |
Total Number of options in force (available for grant, but not yet
granted) |
1,69,000 |
3,15,400 |
| (j) |
Employee-wise details of options granted to |
|
|
|
(i) Key Managerial Personnel |
Nil |
Nil |
|
(ii) Any other employee who receives a grant in any one year of option
amounting to 5% or more of option granted during that year |
Nil |
Nil |
|
(iii) Identified employees who were granted option, during any one
year, equal to or exceeding 1% of the issued capital (excluding outstanding warrants and
conversions) of the company at the time of grant |
Nil |
Nil |
A certificate from the Company's Secretarial Auditors, with respect to implementation
of the above Employee Stock Option Schemes in accordance with SEBI (Share Based Employee
Benefits and Sweat Equity) Regulations, 2021, and the resolution passed by the Members of
the Company has been received and the same is attached as Annexure-10.
The details as required under Part F of Schedule I read with Regulation 14 of SEBI
(Share Based Employee Benefits and Sweat Equity) Regulations, 2021, are disclosed on the
Company's website and the web link is given below:
https://www.ramcocements.in/investors/shareholders
Credit Rating
The ratings for the Company's borrowing are available in Corporate Governance Report.
Awards
The Company has been receiving various awards in Environment, Health & Safety, CSR,
Energy Efficiency, etc. More details are available in pages 60 and 61.
Shares
The Company's shares are listed in BSE Limited and National Stock Exchange of India
Limited.
Investor Education and Protection Fund (IEPF)
Dividend amount remaining unclaimed/unpaid for a period of over 7 years, transferred to
IEPF, during the year under review are detailed below:
Dividend |
Amount |
Date of Transfer |
Details |
Transferred – Rs. |
to IEPF |
| 2014-15 |
22,76,802 |
26-08-2022 |
| 2015-16 |
44,13,600 |
28-03-2023 |
Shares transferred to IEPF, during the year under review are detailed below:
No. of Shares |
Date of Transfer to IEPF |
| 80 |
07-09-2022 |
| 15,050 |
09-09-2022 |
| 6,759 |
27-09-2022 |
| 4,000 |
14-10-2022 |
Year wise amount of unpaid/unclaimed dividend lying in the unpaid account and
corresponding shares, which are liable to be transferred to IEPF and due dates for such
transfer, are tabled below:
Year |
Type of Dividend |
Date of Declaration of Dividend |
Last Date for Claiming Unpaid Dividend |
Due Date for Transfer to IEP Fund |
No. of Shares of Rs. 1/- each |
Amount of Unclaimed / Unpaid Dividend as on 31-03-2023 – Rs. |
| 2016-17 |
Dividend |
04-08-2017 |
03-08-2024 |
02-09-2024 |
15,73,924 |
47,21,772 |
| 2017-18 |
Dividend |
03-08-2018 |
02-08-2025 |
01-09-2025 |
8,33,804 |
25,01,412 |
| 2018-19 |
Dividend |
08-08-2019 |
07-08-2026 |
06-09-2026 |
7,80,731 |
23,42,193 |
| 2019-20 |
Dividend |
03-03-2020 |
02-03-2027 |
01-04-2027 |
7,35,278 |
18,38,195 |
| 2020-21 |
Dividend |
12-03-2021 |
11-03-2028 |
10-04-2028 |
7,69,230 |
20,84,890 |
| 2021-22 |
Dividend |
10-08-2022 |
09-08-2029 |
08-09-2029 |
7,97,761 |
21,46,344 |
Directors' Responsibility Statement
Pursuant to Section 134(5) of the Companies Act, 2013, the Directors confirm that
(a) they had followed the applicable accounting standards along with proper explanation
relating to material departures, if any, in the preparation of the annual accounts for the
year ended 31st March 2023;
(b) they had selected such accounting policies and applied them consistently and made
judgments and estimates that are reasonable and prudent so as to give a true and fair view
of the state of affairs of the Company as on 31st March 2023 and of the profit
of the Company for the year ended on that date;
(c) they had taken proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of this Act for safeguarding the
assets of the Company and for preventing and detecting fraud and other irregularities;
(d) they had prepared the annual accounts on a going concern basis;
(e) they had laid down internal financial controls to be followed by the Company and
that such internal financial controls are adequate and were operating effectively; and
(f) they had devised proper systems to ensure compliance with the provisions of all
applicable laws and that such systems were adequate and operating effectively.
Acknowledgement
The Directors are grateful to the various Departments and agencies of the Central and
State Governments for their help and co-operation. They are thankful to the Financial
Institutions and Banks for their continued help, assistance and guidance. The Directors
also wish to place on record their appreciation of employees at all levels for their
commitment and their contribution.
On behalf of the Board of Directors, For
THE RAMCO CEMENTS LIMITED,
|
M.F.FAROOQUI |
| Chennai |
Chairman |
| 18-05-2023 |
(DIN: 01910054) |
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