Latin Manharlal Chat
BSE Prices delayed by 5 minutes...
     Prices as on Oct 19, 2017     
  ABB India 1339.75 [ 1.05% ]
  ACC 1766.85 [ -1.01% ]
  Axis Bank Ltd. 460.35 [ -0.86% ]
  Bajaj Auto Ltd. 3215.2 [ -0.52% ]
  Bank of Baroda 135.05 [ -1.28% ]
  Bharti Airtel 473.85 [ 2.66% ]
  Bharat Heavy Ele 84.8 [ 0.12% ]
  Bharat Petroleum 508.4 [ -0.77% ]
  Britannia Ind. 4645.3 [ -0.63% ]
  Cipla 608.2 [ -0.41% ]
  Coal India Ltd. 286.2 [ -1.38% ]
  Colgate Palm. 1047.05 [ -0.59% ]
  Dabur India 317.95 [ -0.19% ]
  DLF Ltd. 175.6 [ -1.46% ]
  GAIL (India) Ltd. 433.1 [ -0.67% ]
  Grasim Inds. 1129.6 [ -1.55% ]
  HCL Technologies 921.65 [ -0.19% ]
  HDFC 1747.45 [ -0.27% ]
  HDFC Bank 1850.35 [ -1.03% ]
  Hero MotoCorp 3738.15 [ -0.26% ]
  Hindalco Indus. 274 [ -0.49% ]
  ICICI Bank 257.85 [ -1.98% ]
  IDFC L 63.95 [ 0.79% ]
  Indian Hotels Co 114 [ 0.44% ]
  IndusInd Bank 1694.6 [ -0.96% ]
  Infosys 927.1 [ 0.29% ]
  ITC Ltd. 269.6 [ -0.28% ]
  Jindal St & Pwr 160.05 [ -0.81% ]
  L&T 1141 [ -0.02% ]
  Lupin Ltd. 1052.5 [ 0.34% ]
  Mahi. & Mahi 1374.45 [ 0.23% ]
  MTNL 19.9 [ -0.50% ]
  Nestle India 7235 [ -0.20% ]
  NIIT Ltd. 104.4 [ -1.51% ]
  NMDC Ltd. 122.6 [ 0.12% ]
  NTPC 175.15 [ -1.60% ]
  ONGC 172.15 [ -1.18% ]
  Punj. NationlBak 129.6 [ -0.92% ]
  Power Grid Corpo 210.6 [ -1.17% ]
  Reliance Inds. 910.35 [ -0.37% ]
  SBI 242.5 [ -0.70% ]
  Vedanta 327.75 [ -0.88% ]
  Shipping Corpn. 90.8 [ -0.27% ]
  Sun Pharma. 535.6 [ -0.88% ]
  Tata Chemicals 719.45 [ -0.94% ]
  Tata Motors Ltd. 427.25 [ -1.45% ]
  Tata Steel 704.4 [ -0.70% ]
  Tata Power Co. 81.75 [ -0.12% ]
  United Spirits 2471.5 [ -1.17% ]
  Wipro Ltd 291.85 [ -1.08% ]

Company Information

Home » Market » Company Information

Ambuja Cements Ltd.

Oct 19
275.05 -3.55 ( -1.27 %)
 
VOLUME : 18718
Prev. Close 278.60
Open Price 280.00
TODAY'S LOW / HIGH
272.15
 
 
 
280.00
Bid PRICE (QTY.) 0.00 (0)
Offer PRICE (Qty.) 0.00 (0)
52 WK LOW / HIGH
191.00
 
 
 
291.30
Oct 19
274.05 -3.85 ( -1.39 %)
 
VOLUME : 143094
Prev. Close 277.90
Open Price 277.50
TODAY'S LOW / HIGH
271.95
 
 
 
279.70
Bid PRICE (QTY.) 0.00 (0)
Offer PRICE (Qty.) 0.00 (0)
52 WK LOW / HIGH
191.00
 
 
 
291.50
Company Information Menu

Search Company

Market Cap. ( ₹ ) 54416.61 Cr. P/BV 2.78 Book Value ( ₹ ) 98.43
52 Week High/Low ( ₹ ) 292/191 FV/ML 2/1 P/E(X) 48.54
Bookclosure 03/08/2017 EPS ( ₹ ) 5.65 Div Yield (%) 1.02
NOTES TO ACCOUNTS
You can view the entire text of Notes to accounts of the company for the latest year
Year End :2016-12 

a) Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity shares having a par value of ' 2 per share. Each shareholder is entitled to one vote per equity share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company, the equity shareholders are eligible to receive remaining assets of the Company, in proportion to their shareholding, after distribution of all preferential amounts.

As per the records of the Company, including its register of shareholders / members and other declarations received from shareholders regarding beneficial interest, the above shareholding represent both legal and beneficial ownership of shares.

b) Outstanding tradable warrants and right shares kept in abeyance exercisable into 186,690 (previous year -186,690) and 139,830 (previous year - 139,830) equity shares of ' 2 each fully paid-up respectively.

c) Aggregate number of shares issued for consideration other than cash during the period of five years immediately preceding the reporting date:

Pursuant to the Scheme of amalgamation of Holcim (India) Private Limited (HIPL) with the Company, 584,417,928 equity shares were allotted as fully paid up to the equity shareholders of HIPL, without payment being received in cash (Refer note 47).

* In respect of these items, future cash outflows are determinable only on receipt of judgements / decisions pending at various forums / authorities.

1 Royalty on limestone represents additional royalty, consequent to the order passed by Madhya Pradesh State Mining Department, based on the ratio of 1.6 tonnes of limestone to 1.0 tonne of cement produced at its factory in Chhattisgarh. Subsequent to year end, the Hon'ble High Court of Chhattisgarh, Bilaspur has ruled the matter in favour of the Company.

2 Includes a matter relating to 75% exemption from sales tax granted by Government of Rajasthan. However, the eligibility of exemption in excess of 25% was contested by the State Government in a similar matter of another Company. In year 2014, pursuant to the unfavourable decision of the Supreme Court in that similar matter, the sales tax department has initiated proceedings for recovery of differential sales tax and interest thereon on the ground that the Company had given an undertaking to deposit the differential amount of sales tax, in case the Supreme Court's decision goes against the matter referred above. Against the total demand of ' 247.97 crore (including interest of Rs, 134.45 crore), the Company has deposited an amount of Rs, 143.52 crore (including interest Rs, 30.00 crore) (previous year Rs, 143.52 crore, including interest Rs, 30.00 crore), towards sales tax under protest and filed a Special Leave Petition in the Supreme Court with one of the ground that the tax exemption was availed by virtue of the order passed by the Board for Industrial & Financial Reconstruction (BIFR) during the relevant period. On Company's petition, the Hon'ble Supreme Court has granted an interim stay on the balance interest. Based on the advice of external legal counsel, the Company believes that, it has good grounds for a successful appeal. Accordingly, no provision is considered necessary.

3 a) In 2012, the Competition Commission of India (CCI) issued an order imposing penalty on certain cement manufacturers, including the Company concerning alleged contravention of the provisions of the Competition Act, 2002 and imposed a penalty of Rs, 1,163.91 crore on the Company. On Company's appeal, Competition Appellate Tribunal (COMPAT), initially stayed the penalty and by its final order dated 11th December, 2015, set aside the order of the CCI, remanding the matter back to the CCI for fresh adjudication and for passing a fresh order. After hearing the matter afresh, the CCI has again, by its order dated 31st August, 2016, imposed a penalty of Rs, 1,163.91 crore on the Company. The Company has filed an appeal against the said Order with the COMPAT. The COMPAT, vide its order dated 21st November, 2016 has stayed the penalty with a condition to deposit 10% of the penalty amount which has been deposited. Pending final disposal of the appeal, the matter has been disclosed as contingent liability along with with interest of Rs, 42.33 crore. b) In a separate matter, pursuant to a reference filed by the Director, Supplies and Disposals, Government of Haryana, the CCI by its Order dated 19th January, 2017 has imposed a penalty of Rs, 29.84 crore on the Company. The Company is in the process of filing an appeal before COMPAT against the said Order.

Based on the advice of external legal counsels, the Company believes it has good grounds on merit for a successful appeal in both the aforesaid matters. Accordingly, no provision is considered necessary.

4 The Collector of Stamps, Delhi vide its Order dated 7th August, 2014, directed erstwhile Holcim (India) Private Limited (HIPL), (now merged with the Company), to pay stamp duty (including penalty) of Rs, 287.88 crore (previous year Rs, Nil) on the merger order passed by Hon'ble High Court of Delhi, approving the merger of erstwhile Ambuja Cement India Private Limited with HIPL. HIPL had filed a writ petition and the Hon'ble High Court of Delhi has granted an interim stay. Based on the advice of external legal counsel, the Company believes that it has good grounds for success in writ petition. Accordingly, no provision is considered necessary.

5 . Material Demand and dispute considered as "remote" by the Company

One of the Company's Cement manufacturing plants located in Himachal Pradesh was eligible, under the State Industrial Policy for deferral of its sales tax liability arising on sale of cement manufactured in the said plant. The Excise and Taxation department of the Government of Himachal Pradesh, disputed the eligibility of the Company to such deferment on the ground that the Company also manufactures an intermediate product, viz. Clinker, arising in the manufacture of cement, and such intermediate product was is in the negative list. A demand of Rs, 66.94 crore was raised. The Company filed a writ petition before High Court of Himachal Pradesh against the demand. The case has been admitted and the hearing is in process. The Company believes its case is strong and the demand shall not sustain under law.

6. Related party disclosure (As per Accounting Standard 18 specified under Section 133 of the Companies Act, 2013)

1. Name of related parties

A) Names of the related parties where control exists Nature of Relationship

(i) LafargeHolcim Limited (Formerly known as Holcim

Ltd.), Switzerland............................................................. Ultimate Holding Company

(ii) Holderfin B.V., Netherlands............................................. Intermediate Holding Company

(iii) Holderind Investments Limited, Mauritius ..................... Holding Company

(iv) ACC Limited...................................................................... Subsidiary, (erstwhile Fellow Subsidiary)

pursuant to amalgamation of Holcim (India) Private Limited with the Company w.e.f.12.08.2016 (Appointed date 01.04.2013)

(v) M.G.T. Cements Private Limited...................................... Subsidiary

(vi) Kakinada Cements Limited.............................................. Subsidiary (Liquidated w.e.f 10.05.2016)

(vii) Chemical Limes Mundwa Private Limited....................... Subsidiary

(viii) Dang Cement Industries Private Limited, Nepal............ Subsidiary

29. Related party disclosure (As per Accounting Standard 18 specified under Section 133 of the Companies Act, 2013)(Contd.)

1. Name of related parties (Contd.)

A) Names of the related parties where control exists (Contd.) Nature of Relationship

(ix) Dirk India Private Limited................................................ Subsidiary

(x) OneIndia BSC Private Limited......................................... Subsidiary (w.e.f.12.08.2016), Joint

Venture (w.e.f. 13.08.2015 upto 12.08.2016 )

(xi) Wardha Vaalley Coal Field Private Limited..................... Joint Venture

(xii) Counto Microfine Products Private Limited................... Joint Venture

(xiii) ACC Mineral Resources Limited....................................... Subsidiary of ACC Limited

(xiv) Lucky Minmat Limited..................................................... Subsidiary of ACC Limited

(xv) National Limestone Company Private Limited............... Subsidiary of ACC Limited

(xvi) Singhania Minerals Private Limited................................ Subsidiary of ACC Limited

(xvii) Bulk Cement Corporation (India) Limited...................... Subsidiary of ACC Limited

(xviii) Alcon Cement Company Private Limited ....................... Associate of ACC Limited

(xix) Asian Concretes and Cements Private Limited............... Associate of ACC Limited

(xx) Aakaash Manufacturing Company Private Limited....... Associate of ACC Limited

(xxi) MP AMRL (Semaria) Coal Company Limited................... Joint Venture of ACC Mineral Resources Limited

(xxii) MP AMRL (Bicharpur) Coal Company Limited................ Joint Venture of ACC Mineral Resources Limited

(xxiii) MP AMRL (Marki Barka) Coal Company Limited............ Joint Venture of ACC Mineral Resources Limited

(xxiv) MP AMRL (Morga) Coal Company Limited..................... Joint Venture of ACC Mineral Resources Limited

B) Others with whom transactions have taken place during the year

(I) Names of other related parties Nature of Relationship

(a) Holcim (India) Private Limited................................ Fellow Subsidiary amalgamated with the Company w.e.f. 12.08.2016 (Refer note 47)

(b) Holcim (Lanka) Limited, Sri Lanka.......................... Fellow Subsidiary (Upto 10.08.2016)

(c) Holcim Group Services Limited, Switzerland......... Fellow Subsidiary

(d) Holcim Technology Limited, Switzerland.............. Fellow Subsidiary

(e) Holcim Philippines, Inc., Philippines....................... Fellow Subsidiary

(f) Holcim Services (South Asia) Limited ..................... Fellow Subsidiary

(g) Holcim Trading FZCO, UAE..................................... Fellow Subsidiary

(h) LH Trading Pte Limited, Singapore (Formerly known as Holcim Trading Pte Limited) .................. Fellow Subsidiary

(i) Holcim Cement (Bangladesh) Limited, Bangladesh .............................................................. Fellow Subsidiary

(j) Holcim (Romania) S.A., Romania............................ Fellow Subsidiary

(k) LafargeHolcim Energy Solutions S.A.S., France..... Fellow Subsidiary (w.e.f. 01.07.2015)

(l) Holcim Technology (Singapore) Pte Limited, Singapore................................................................. Fellow Subsidiary

(m) Thalamar Shipping AG, Switzerland...................... Fellow Subsidiary

(n) Lafarge India Private Limited................................. Fellow Subsidiary (w.e.f. 10.07.2015 and upto 04.10.2016)

(o) Geocycle (Deutschland) Gmbh., Deutschland....... Fellow Subsidiary

(II) Key Management Personnel

Name of the related parties Nature of Relationship

Mr. Ajay Kapur................................................................. Managing Director & Chief Executive Officer

7. Employment benefits :

a) Defined Contribution Plans

Defined Contribution Plans - Amount recognised and included in note 21 "Contributions to Provident and other Funds" of Statement of Profit and Loss Rs, 27.12 crore (previous year - Rs, 27.52 crore).

b) Defined Benefit Plans - as per actuarial valuation

Funded plan includes gratuity benefit to every employee who has completed service of five years or more, at 15 days salary for each completed year of service (on last drawn basic salary).

Other non funded plan include death & disability benefit, non-funded gratuity and post employment healthcare benefits to certain employees.

Summary of the components of net benefit / expense recognised in the Statement of Profit and Loss and the funded status and amounts recognised in the balance sheet for the respective plans:

8. Operating lease :

The Company has taken various residential premises, office premises and warehouses under operating lease agreements. These are generally cancellable and are renewable by mutual consent on mutually agreed terms.

9. The Company is eligible for receipt of transport subsidy on inter-state transport of raw materials, clinker and cement in certain units. Accordingly, the Company has accrued an amount and adjusted against the respective expenses as under :

10. (a) Other income includes Rs, 21.04 (previous year Rs, Nil) written back towards interest on income tax relating to earlier years.

(b) Tax expense for earlier years represents write back upon completion of assessments and change in estimate of allowability of certain deductions.

11. The Company has incurred Rs, 59.37 crore (previous year Rs, 40.98 crore) towards Social Responsibility activities. It is included in different heads of expenses in the Statement of Profit and Loss. Further, no amount has been spent on construction / acquisition of an asset of the Company and the entire amount has been spent in cash. The amount required to be spent under Section 135 of the Companies Act, 2013 for the year 2016 is ' 29.78 crore i.e. 2% of average net profits for last three financial years, calculated as per Section 198 of the Companies Act, 2013.

12. Amalgamation of Holcim (India) Private Limited ('HIPL') with Ambuja Cement Limited ('the Company'):

a) HIPL was primarily engaged in the cement business, through its downstream investment in cement manufacturing ventures in India. The Board of Directors and members of the Company had approved the Scheme of amalgamation (the Scheme) between the Company and HIPL from the appointed date, 1st April, 2013. The Scheme was sanctioned by the Hon'ble High Courts of Gujarat and Delhi vide their orders dated 7th April, 2014 and 18th March, 2014, respectively.

b) On 1st August, 2016, Foreign Investment Promotion Board (FIPB) has approved the transaction for acquisition of 24% equity shares of HIPL by the Company and subsequent merger of HIPL through share swap, being the conditions precedent to the Scheme. Pursuant to FIPB approval, the Scheme came into effect on 12th August, 2016 (effective date) when all the conditions precedent to the Scheme were complied with. Accordingly, HIPL has been amalgamated with the Company on a going concern basis from the effective date. The Company has followed the purchase method of accounting in accordance with Accounting Standard 14, Accounting for Amalgamations, accordingly all the assets and liabilities of HIPL have been transferred to and vested in the Company at their respective fair values on the appointed date.

Pursuant to above, the Company has :

i) purchased 24% equity shares of HIPL for a cash consideration of Rs, 3,500.27 crore;

ii) cancelled 150,670,120 equity shares of Rs, 2 each, fully paid up, of the Company held by HIPL; and

iii) issued 584,417,928 equity shares of Rs, 2 each, fully paid up to the equity shareholder of HIPL for the remaining 76% equity shares (without consideration being received in cash) and credited an amount of Rs, 10,967.20 crore to securities premium account.

c) The excess of the consideration viz. fair value of new shares issued and cost of shares in HIPL cancelled over the fair value of net assets taken over and the face value of the shares of the Company cancelled amounting to Rs, 2,827.48 crore has been recognised as goodwill and is amortized over a period of three years from the appointed date in accordance with Accounting Standard AS 14 notified under the Companies Accounting Standards Rules, 2006, as amended.

d) Consequent to amalgamation, the following adjustments by way of debit / (credit) have been made in the "Surplus in the Statement of Profit and Loss" under "Reserve and surplus":

i) Rs, 2,591.85 crore being amortisation of goodwill from the appointed date till 31st December, 2015;

ii) Rs, (41.19) crore, being the net surplus in the Statement of Profit and Loss of HIPL from the appointed date till 31st December, 2015;

iii) Rs, 199.96 crore, being interim dividend and tax thereon paid by HIPL during the year; and

iv) Rs, (74.69) crore being inter Company elimination of dividend paid by the Company and HIPL during the year.

e) Pursuant to the amalgamation, ACC Limited has become the subsidiary of the Company.

13. During the previous year, the Board of Directors had approved the amalgamation of Dirk India Private Limited, a wholly owned subsidiary, with the Company w.e.f. 1st April, 2015, in terms of the Scheme of amalgamation. During the year, the Board of Directors, in their meeting held on 28th April, 2016, decided not to pursue the Scheme and not to file it with the Hon'ble High Courts for their approval. There is no material implication of this decision on the financial statements of the Company.

14. During the previous year, pursuant to the enactment of the Companies Act 2013 ('the Act'), the Company has, effective 1st January, 2015, reviewed and revised the estimated useful lives of fixed assets, as per the life indicated in the Act. Accordingly, as per the transition provisions of the Act, the Company has adjusted Rs, 106.63 crore (net of tax of Rs, 54.90 crore) in opening balance of "Surplus in the Statement of Profit and Loss" as on 1st January, 2015, in respect of assets, whose useful life is exhausted as at 1st January, 2015. Further, as a result of this change, depreciation for the year ended 31st December, 2015 was higher by Rs, 107.79 crore.

15. During the previous year, the Company had subscribed for Rs, 2.50 crore in equity shares of OneIndia BSC Private Limited (OIBPL). OIBPL was a joint venture Company till previous year, and has now become a subsidiary in the current year, consequent to amalgamation pursuant to which ACC Limited, became a subsidiary of the Company during the year.

16. The Company has only one business segment 'Cement and cement related products' as primary segment. The export turnover is not significant in the context of total turnover of the Company and further the risk and returns are not significantly different from that of India. As such there is only one geographical segment.

17. The Companies (Indian Accounting Standards) Rules, 2015 (Ind-AS) would be applicable to the Company from financial year commencing on 1st January, 2017. Accordingly, the financial statements have been prepared in compliance with Companies (Accounting Standards) Rules, 2006.

18. Figures below Rs, 50,000 have not been disclosed.

19. Previous year's figures have been regrouped / reclassified wherever necessary, to conform to current year's classification. Further, the current year figures are not comparable with those of the previous year due to amalgamation of HIPL (Refer note 47).