Dividend Policy 1. How frequently does the company pay dividend?Shree Cements Ltd. pays dividend 2 or 3 times in a year. For year 2013-14, first interim dividend was announced in December, 2013. Second and third were announced in July and august 2014 respecively.http://economictimes.indiatimes.com/shree-cements-ltd/infocompanydividends/companyid-13129.cms2. What was the announcement date of the most recent dividend?The announcement date was 19/08/2014 and the effective date was 28/08/2014 for the most recent dividend.http://economictimes.indiatimes.com/shree-cements-ltd/infocompanydividends/companyid-13129.cms3. What is the amount of the dividend?The amount for the most recent interim dividend was Rs. 10 per share (100%) and it was Rs. 12 per share (120%) and Rs. 10 per share (100%) for last two interim dividends.http://economictimes.indiatimes.com/shree-cements-ltd/infocompanydividends/companyid-13129.cms4. When did the stock last go ex-dividend?Shree cement ltd went ex-dividend last time on 28/08/2014.http://www.morningstar.in/stocks/0p0000bc2r/bse-shree-cements-ltd/overview.aspx

5. What happened to the stock price on the ex-dividend date? When was theDividend actually paid?Stock price of the company dropped from 7922 to 7870. And the last dividend was actually paid on Feb 05, 2014.http://www.motilaloswal.com/Broking/Markets/Company-Information/Corporate-Actions/Shree-Cement-Ltd/508/6

6. Look up the stock price and calculate the annual dividend yield on the stock. Calculate the dividend payout ratio for the last three years.Stock Price= Rs. 10906.8 Annual Dividend Yield= 32/10906.8= 0.30%Dividend Payout Raio (2013)= 696.7mn/10039.7mn= 6.94Dividend Payout Raio (2012)= 69.64cr/618.5crore= 11.26Dividend Payout Raio (2011)= 48.75cr/209.7cr= 23.25http://www.moneycontrol.com/stocks/company_info/print_main.php

7. How much has the company spent to repurchase its own shares? Shree Cement has not done share repurchase.

Capital Structure 1. Recalculate book- and market-value balance sheets using the most recent available financial information. Use the same format as Table 18.4. Book Value:Net working Capital1350.9 Cr.1078.3 Cr.Long term debt

Long Term assets4438.2 Cr.

4710.8 Cr.Equity Capital

Total5789.1 Cr.5789.1 Cr.

Market Value:Net working Capital1350.9 Cr.1078.3 Cr.Long term debt

Long Term assets37723.4 Cr.

37996.0 Cr.Equity Capital

Total39074.3 Cr.39074.3 Cr.

2. Track long-term debt and debt ratio over the last three years. How have they changed? Does it appear that the comapny has a stable target debt ratio?

YearLong term debtLong Term Debt/ EquityTotal Debt/Equity

March20141078.3 Cr.0.120.25

March2013977.4 Cr.0.300.35

March 2012961 Cr.0.840.93

Debt to Equity ratio are decreasing for the firm so it does not have a stable target debt ratio.

3. Track major external financing (both equity and debt) during the last three years. Do you see any evidence of pecking-order financing?

(External Funding = Increase in Assets Retained Profit; External Debt = Increase in Assets-Increase in SHs funds)

We did not see any pecking order financing

Increase in AssetsRetained ProfitExternal financingIncrease in AssetsIncrease in SHs fundsExternal debt

2013-14768 mil30.07 mil737.93 mil768 mil788.23(400.23) mil

2012-13594 mil92.25 mil501.75 mil594515.6678.34 mil

2011-12772 mil15.11 mil756.89 mil772 mil859.21(87.21) mil