Yearly Results of Sagar Cements

------------------- in Rs. Cr. -------------------

Mar '07 Sales Turnover Other Income Total Income Total Expenses Operating Profit Profit On Sale Of Assets Profit On Sale Of Investments Gain/Loss On Foreign Exchange VRS Adjustment Other Extraordinary Income/Expenses Total Extraordinary Income/Expenses Tax On Extraordinary Items Net Extra Ordinary Income/Expenses Gross Profit Interest PBDT Depreciation Depreciation On Revaluation Of Assets PBT Tax Net Profit Prior Years Income/Expenses 112.50 0.88 113.38 69.55 42.95 --------43.83 1.60 42.23 3.41 -38.82 11.15 27.67 --

Mar '08 223.14 1.00 224.14 166.55 56.59 --------57.59 3.40 54.20 4.14 -50.06 19.10 30.96 -----23.21 -13.34 91.43 10.00

Mar '09 306.55 0.80 307.35 247.49 59.06 --------59.86 15.90 43.96 18.72 -25.24 8.78 16.46 -----10.97 -15.00 177.22 10.00

Mar '10 479.57 6.79 486.36 399.90 79.67 --------86.46 28.95 57.51 27.69 -29.82 10.70 19.12 -----12.75 -15.00 192.10 10.00

Mar '11 497.76 19.02 516.77 436.16 61.60 --------80.62 30.65 49.96 27.02 -22.94 5.34 17.60 -----11.73 -15.00 209.82 10.00

Depreciation for Previous Years Written Back/ -Provided Dividend Dividend Tax Dividend (%) Earnings Per Share Book Value Equity Reserves Face Value ---21.78 -12.70 59.89 10.00

Capital Structure (Sagar Cements) Period From 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1996 1995 1994 1993 1992 1991 1990 1986 1984 Instrument To 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1996 1995 1994 1993 1992 1991 1990 1986 Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Authorized Capital Issued Capital
(Rs. cr) (Rs. cr)

-PAIDUPShares (nos) 15002300 15002300 13337300 12702300 11152300 11152300 11152300 11152300 11152300 8152300 8152300 8152300 8152300 8152300 8152300 8152300 8152300 2850400 2850400 2850000 2850000

Face Value 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10

Capital 15 15 13.34 12.7 11.15 11.15 11.15 11.15 11.15 8.15 8.15 8.15 8.15 8.15 8.15 8.15 8.15 2.85 2.85 2.85 2.85

20 20 20 20 12 12 12 12 12 12 10 10 10 10 10 10 10 10 6.56 3.77 3.77

15 15 13.34 12.7 11.15 11.15 11.15 11.15 11.15 8.15 8.15 8.15 8.15 8.15 8.15 8.15 8.15 2.85 2.85 2.85 2.85

Previous Years

Profit & Loss account of Sagar Cements

------------------- in Rs. Cr. ------------------Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

12 mths Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses 55.84 29.77 4.21 0.49 33.55 0.45 0.00 124.31 Mar '06 12 mths Operating Profit PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs) 111.52 2.54 10.00 22.29 7.81 8.47 2.61 5.86 3.02 0.00 2.84 0.00 2.84 0.02 2.83 68.47 0.00 1.27 0.00 153.77 20.43 133.34 0.66 -1.22 132.78

12 mths

12 mths

12 mths

12 mths

247.14 21.87 225.27 0.88 -0.51 225.64 89.13 32.54 7.54 0.67 51.09 0.80 0.00 181.77 Mar '07 12 mths 42.99 43.87 1.60 42.27 3.41 0.00 38.86 0.00 38.86 11.18 27.67 92.64 0.00 3.02 0.42 127.02 21.78 25.00 57.15

274.62 20.86 253.76 0.48 0.16 254.40 92.95 37.80 10.88 1.28 52.12 1.35 0.00 196.38 Mar '08 12 mths 57.54 58.02 3.40 54.62 4.13 0.00 50.49 0.00 50.49 19.50 30.96 103.45 0.00 3.40 0.58 133.37 23.21 25.00 78.55

334.27 27.73 306.54 0.79 5.22 312.55 93.16 74.77 13.01 3.17 66.73 1.85 0.00 252.69 Mar '09 12 mths 59.07 59.86 15.90 43.96 18.72 0.00 25.24 0.40 25.64 9.19 16.46 159.53 0.00 3.85 0.61 150.02 10.97 25.00 128.13

527.00 43.43 483.57 2.79 2.10 488.46 109.17 138.27 17.14 5.58 129.60 2.21 0.00 401.97 Mar '10 12 mths 83.70 86.49 28.95 57.54 27.69 0.00 29.85 0.05 29.90 10.77 19.12 292.81 0.00 3.75 0.50 150.02 12.75 25.00 138.04

Cash Flow of Sagar Cements

------------------- in Rs. Cr. -------------------

Mar '06 12 mths Net Profit Before Tax Net Cash From Operating Activities Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing Activities Net (decrease)/increase In Cash and Cash Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents 2.85 16.93 -3.00 -13.36 0.56 0.65 1.21

Mar '07 12 mths 38.82 41.15 -40.51 14.09 14.74 1.21 15.95

Mar '08 12 mths 50.06 46.33 -230.85 175.43 -9.08 15.95 6.86

Mar '09 12 mths 25.23 50.16 -109.12 63.31 4.36 6.86 11.22

Mar '10 12 mths 29.82 118.97 -39.20 -88.32 -8.55 11.22 2.67

Print/Copy to Excel :
Previous Years

Key Financial Ratios of Sagar Cements

------------------- in Rs. Cr. -------------------

Mar '06 Investment Valuation Ratios Face Value Dividend Per Share Operating Profit Per Share (Rs) Net Operating Profit Per Share (Rs) Free Reserves Per Share (Rs) Bonus in Equity Capital Profitability Ratios Operating Profit Margin(%) Profit Before Interest And Tax Margin(%) Gross Profit Margin(%) Cash Profit Margin(%) Adjusted Cash Margin(%) Net Profit Margin(%) Adjusted Net Profit Margin(%) Return On Capital Employed(%) Return On Net Worth(%) Adjusted Return on Net Worth(%) Return on Assets Excluding Revaluations Return on Assets Including Revaluations Return on Long Term Funds(%) Liquidity And Solvency Ratios Current Ratio Quick Ratio Debt Equity Ratio Long Term Debt Equity Ratio Debt Coverage Ratios Interest Cover Total Debt to Owners Fund Financial Charges Coverage Ratio Financial Charges Coverage Ratio Post Tax Management Efficiency Ratios Inventory Turnover Ratio Debtors Turnover Ratio Investments Turnover Ratio Fixed Assets Turnover Ratio 20.14 14.09 57.14 3.29 2.09 0.80 3.25 3.24 0.57 0.77 0.80 0.40 5.86 3.58 4.38 4.36 4.36 2.11 2.11 12.18 11.40 11.39 4.19 4.19 15.70 10.00 1.00 7.01 119.56 11.97 --

Mar '07

Mar '08

Mar '09

Mar '10

10.00 2.50 33.84 177.35 46.87 -19.08 17.49 18.68 13.74 13.74 12.23 12.23 41.27 37.56 38.11 57.15 57.15 45.93 1.00 1.30 0.34 0.21 25.22 0.34 27.35 20.38 34.07 25.90 86.73 3.81

10.00 2.50 43.12 190.26 68.29 -22.66 20.95 21.03 13.97 13.97 12.15 12.15 16.81 29.54 30.04 78.55 78.55 20.02 0.43 1.19 2.08 1.59 15.99 2.08 17.21 11.32 93.32 37.22 93.32 1.79

10.00 2.50 39.38 204.33 117.90 -19.27 13.12 13.16 11.31 11.31 5.35 5.35 9.23 8.56 8.35 128.13 128.13 10.17 0.79 1.07 1.32 1.10 2.59 1.32 3.77 3.21 11.20 20.22 11.20 0.71

10.00 2.50 55.79 322.33 127.81 -17.30 11.51 11.58 9.61 9.61 3.93 3.93 13.53 9.23 9.21 138.04 138.04 15.97 0.56 0.79 1.10 0.78 2.03 1.10 2.99 2.62 16.45 14.63 16.45 1.08

Total Assets Turnover Ratio Asset Turnover Ratio Average Raw Material Holding Average Finished Goods Held Number of Days In Working Capital Profit & Loss Account Ratios Material Cost Composition Imported Composition of Raw Materials Consumed Selling Distribution Cost Composition Expenses as Composition of Total Sales Cash Flow Indicator Ratios Dividend Payout Ratio Net Profit Dividend Payout Ratio Cash Profit Earning Retention Ratio Cash Earning Retention Ratio AdjustedCash Flow Times

2.98 1.75 23.75 0.75 3.87 41.87 -24.05 -44.87 21.71 55.13 78.29 3.41 Mar '06

2.30 2.68 23.93 0.67 28.05 39.56 -21.24 -12.44 11.08 87.56 88.92 0.78 Mar '07 21.78 57.15

0.78 1.79 20.06 0.41 23.68 36.62 -19.26 -12.85 11.34 87.36 88.83 6.12 Mar '08 23.21 78.55

0.69 0.71 205.01 4.65 56.78 30.39 -20.51 -27.08 12.67 72.26 87.19 7.28 Mar '09 10.97 128.13

1.11 1.08 11.12 7.30 19.31 22.57 -25.86 -22.20 9.07 77.74 90.92 4.86 Mar '10 12.75 138.04

Earnings Per Share Book Value

2.54 22.29

Competition
Last Price Sagar Cement NCL Industries Deccan Cements Kakatiya Cement 137.00 34.95 152.00 70.45 Market Cap.
(Rs. cr.)

205.53 122.11 106.46 54.77

Sales Turnover 497.76 365.28 338.45 100.88

Net Profit 17.60 23.41 1.99 3.88

Total Assets 434.49 487.63 506.41 145.44

Compare Sagar Cement with another company

Comparison with Competitors

Balance Sheet P&L Account Cash Flows Quarterly Half Yearly 9 Monthly Yearly

Balance Sheet

------------------- in Rs. Cr. -------------------

Sagar Cement NCL Industries Shiva Cement Deccan Cements Bheema Cemen Mar '10 Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities 15.00 15.00 0.00 0.00 192.10 0.00 207.10 221.82 5.57 227.39 434.49 34.94 34.94 0.00 0.00 103.01 0.00 137.95 324.94 24.75 349.69 487.64 37.01 36.77 3.47 0.24 39.34 0.00 79.82 16.31 8.46 24.77 104.59 7.00 7.00 0.00 0.00 165.94 0.00 172.94 305.95 27.51 333.46 506.40 26.48 26.48 29.20 0.00 129.58 0.00 185.26 187.24 30.63 217.87 403.13 Mar '10 Mar '11 Mar '10 Mar '10

Sagar Cement NCL Industries Shiva Cement Deccan Cements Bheema Cemen Mar '10 Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit 448.07 90.54 357.53 10.13 40.89 48.86 41.19 1.50 91.55 43.96 1.18 136.69 0.00 571.08 109.99 461.09 10.97 0.00 44.44 48.99 2.86 96.29 44.30 1.67 142.26 0.00 99.94 25.61 74.33 8.79 0.00 7.75 9.31 0.13 17.19 11.09 1.37 29.65 0.00 528.69 91.89 436.80 54.22 0.11 26.51 10.97 16.09 53.57 31.61 17.64 102.82 0.00 253.49 37.60 215.89 148.49 0.00 29.98 17.26 2.88 50.12 16.47 0.98 67.57 0.00 Mar '10 Mar '11 Mar '10 Mar '10

Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs)

101.29 9.46 110.75 25.94 0.00 434.49 10.44 138.04

121.06 6.00 127.06 15.20 0.37 487.63 4.81 39.48

9.53 0.67 10.20 19.45 2.02 104.59 4.42 4.40

74.08 13.46 87.54 15.28 0.00 506.41 24.63 246.93

24.45 4.37 28.82 38.75 0.00 403.13 30.32 58.93

Explore Sagar Cement connections

Mar 0

Directors Report
The Directors are pleased to present their Twenty Ninth Report together with the audited accounts of the Company for the year ended 31st March, 2010. As you are aware, during the later part of Company had completed a major expansion of 0.297 mtpa to 2.35 mtpa and your Directors that the production from the said expanded stabilized. Financial Results Rs. in lakhs Description Net Sales Other income Total Income Profit before Depreciation, Financial Charges and Tax Less : Depreciation Financial Charges Profit before Tax Less : Net Provision for Tax Profit After Tax 2769 2895 5664 2982 1070 1912 8646 1872 1590 3462 2524 878 1646 5986 2009-10 479S7 679 48636 2008-09 306S4 84 30738 the previous year, your its plants capacity from are pleased to inform you facility has since

Year End : Mar '

Add : Profit brought forward Profit available for appropriation Appropriations proposed Dividend @ 25 % (Rs.2.50 per equity share) Dividend Tax Transfer to General Reserve Balance carried to Balance Sheet Total Basic and Diluted Earning Per Share Dividend

6127

5327

8039

6973

375 49 500 7115 8039 12.75

385 61 400 6127 6973 11.48

Your Board has recommended for declaration at the forthcoming Annual General Meeting, a dividend @ Rs.2.50 per share (25%) on the 15002300 Equity Shares of Rs.10/- each for the year ended 31st March, 2010. Operations review The total income of your Company grew by 58% to Rs.48636 lakhs during the year under report as compared to Rs.30738 lakhs in the previous year. Operating Profit grew by 44.4 % to Rs.8646 lakhs. Profit after Tax was higher at Rs. 1912 lakhs as compared to Rs. 1646 lakhs in the previous year, registering a growth of 16%. Earnings per share for the year were also higher at Rs. 12.75 as against Rs. 11.48 in the previous year. The performance of your company in terms of production and sale of cement / clinker is given below: Particulars Cliker (MTs) 2009-10 Production Sales Sale of Traded Cement 1430000 350133 2008-09 737710 307152 Cement (MTs) 2009-10 1120351 1130636 204191 2008-09 431250 415835 225650

The increase in the production was on account of (he expanded capacity

having become fully operational during the year under review, which enabled your company to record a sharp rise in sales. The year also saw a marginal increase of Rs.63/- and Rs. 126/- in the average net sales realisation per tonne of clinker and packed cement respectively. Share Capital There was no change in the capital structure of your Company during the year under report. Future Outlook The long-term prospects for the cement industry as a whole look bright as the cement consumption, driven by higher off-take by all user segments, is expected to remain robust. However, the capacity additions, which are taking place across the industry and the entry of global cement companies, both through organic and inorganic routes, have intensified the competition within the industry offering little scope for any significant improvement in the realization in the near term. This, coupled with increasing inputs costs, may put the margins under pressure. While the growth in the cement consumption is generally expected to overcome any possible conflict arising due to excess supply and attendant set backs, your Company, on its part, is confident of maintaining its growth amidst aggressive competition by improving its market share through innovative strategies and by cutting costs and improving efficiency in all areas of its operations. Subsidiary Company Documents and Information pursuant to Sec.212 of the Companies Act, 1956 in respect of Sagar Power Limited, the subsidiary of your Company, have been provided as attachment to the Balance Sheet, together with the consolidated financial statements. The performance of this subsidiary would have been much better, but for the fact that one of the two units belonging to this subsidiary continued to be almost non-operational for the second year in succession due to stoppage of flow of water in the relevant canal caused by on-going construction of an aqua-duct across the said canal. With a view to focusing more on the core area of your Company namely the cement business, your Company is divesting its stake in this subsidiary. Joint Venture As you are aware, your Company and Parficim S.A.S., a wholly owned subsidiary of Vicat S.A. of France have jointly promoted Vicat Sagar Cement Private Limited as a special purpose vehicle, to set up a 5.5 mtpa capacity cement plant along with a captive power unit of 60MW capacity in Gulbarga District of Karanataka State. Sagar Cements and the Vicat Group have so far invested a sum of Rs.410 million and Rs. 1196 million respectively in the project. This project is implemented in two phases, each phase with a capacity of 2.75 mtpa. The acquisition of land in respect of first phase is nearing completion. This phase, for which financial closure is expected to be achieved soon, is being planned, barring unforeseen circumstances, to go on stream by 2012. Corporate Governance

Your Company has complied with all the mandatory provisions relating to Corporate Governance as prescribed under Clause 49 of the Listing Agreement with the Stock Exchanges. A separate report detailing such compliance together with the mandatory Certificate obtained from the Statutory Auditors in connection therewith is included as part of the Annual Report. Internal Control Systems Your Company has adequate internal control systems in all important areas of its operations and effectiveness of these systems is periodically reviewed for possible improvement in them. Insurance All the properties of the Company have been adequately insured. Particulars of Employees Particulars of employees required to be furnished in this Report pursuant to Sec.217 (2A) of the Companies Act, I956 are given in the annexure. Industrial Relations Your Company continues to en]oy cordial relationship with all its personnel at the Plant, Office and on the field. Conservation of Energy, Technology absorption and Foreign Exchange Earnings and Outgo: The particulars required under Sec.217 (I) (e) of the Companies Act, 1956 have been provided in the annexure, which forms part of the Report. Pollution Control Your company is committed to keep the pollution at its plant within the acceptable norms and as part of this commitment, it has installed an ESP system at the plant. Directors In compliance with Sec.256 of the Companies Act, 1956, Shri S.Sreekanth Reddy and Shri Werner C.R.Poot will be retiring by rotation at the ensuing Annual General Meeting and these retiring directors, being eligible, are proposed for re-appointment. Shri Gilbert Noel Claude Natta, who was appointed as additional directors on the Board on 17th September 2009, will be holding his office up to the ensuing Annual General Meeting in accordance with Sec.260 of the Companies Act, 1956 and a notice proposing his re-appointment U/s.257 of the said Act has been received from a member of the Company. Your Board recommends the re-appointment of all the above mentioned directors at the ensuing Annual General Meeting. Sub Committees of the Board The Board has Audit Committee, Remuneration Committee, Investment Committee and Investors Grievances Committee, the composition and

details of which have been given in the Report on the Corporate Governance forming part of the Annual Report. Auditors Messrs. P.Srinivasan & Co., Chartered Accountants, the present Auditors of your Company will be holding their office up to the ensuing Annual General Meeting. Shareholders are requested to appoint Auditors to the Company to hold office from the conclusion of its ensuing Annual General Meeting until the conclusion of its next Annual General Meeting. Your Board has accepted the recommendation of its Audit Committee to re-appoint the retiring auditors, who, being eligible for re-appointment, have since consented to the proposed re-appointment and confirmed that the said re-appointment would be within the limits specified in Sub Section (IB) of Section 224 of the Companies Act, 1956. Directors Responsibility Statement Pursuant to Section 217 (2AA) of the Companies Act, 1956, we state: (i) that in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material developments; (ii) that the directors had selected such accounting policies and applied them consistently and made judgment and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the company for the period; (iii) that the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; (iv) that the directors had prepared the annual accounts on a going concern basis. Public Deposits Your Company had not accepted any Deposits from the public under Section 58A of the Companies Act, 1956 during the year 2009-10. Management Discussion and Analysis Report In accordance with Clause 49 of the Listing Agreement with the Stock Exchanges, the Management Discussion and Analysis Report is given in the Annexure, to form part of the Annual Report. Acknowledgement Your Directors wish to place on record their appreciation of the valuable co-operation extended to the Company by its bankers and various authorities of the State and Central Government. They thank the Distributors, Dealers, Consignment Agents, suppliers and other business

associates of your Company for their continued support. Your Board also takes this opportunity to place on record its appreciation of the contributions made by the employees at all levels and last but not least, of the continued confidence reposed by you in the Management. For and on behalf of the Board of Directors

O.Swaminatha Reddy Chairman Hyderabad 31 st July, 2010

Source : Dion Global Solutions Limited