Good afternoon

ANNUAL REPORT PRESENTATION On

Associates Cement Companies

Presented by : Giri Prasad

Jyothi

Shrikanthi

Satish Kumar

Venkoba

Vajiraj

content

0 Introduction of Company 0Directors report analysis0Management Discussion and Analysis 0Auditor report0Subsidiary companies and their performances0Financial ratio’s and analysis0 conclusion

Introduction0 ACC (ACC Limited) is India's foremost manufacturer of cement

and concrete. ACC's operations are spread throughout the country with 16 modern cement factories, more than 40 Ready mix concrete plants, 20 sales offices, and several zonal offices. It has a workforce of about 9,000 persons and a countrywide distribution network of over 9,000 dealers.

0 ACC has made significant contributions to the nation building process by way of quality products, services and sharing expertise

0 It is the only cement company that figures in the list of Consumer Super Brands of India.

SUBSIDIARY COMPANIES of ACC’s

0 ACC Concrete Limited0 Lucky Minmat Limited0 Bulk Cement Corporation (India) Limited (BCCI)0 National Limestone Company Private Limited0 ACC Mineral Resources Limited (AMRL)

ACC is proud of its large supply chain managed by an energetic sales force from an extensive spread of sales offices spanning India, a country-wide network of highly motivated channel partners comprising more than 9000 dedicated dealers complemented by a chain of retailers.

SUBSIDIARY COMPANIES OF ACC’S & THEIR PERFORMANCES

0 ACC Concrete Limited

0 Lucky Minmat Limited

0 Bulk Cement Corporation (India) Limited (BCCI)

0 National Limestone Company Private Limited

0 ACC Mineral Resources Limited (AMRL)

Directors report

0The Directors hereby present the Seventy Fourth Annual Report together with the audited accounts, for the year ended December 31, 2009.

The cement industry posted a steady growth of about 10.3% during the year under review. Overall cement dispatches in 2009 were approximately 195million tonnes; up from 177 million tonnes in 2008.Growth was registered across all regions

HIGHLIGHTS OF PERFORMANCE/EVENTS

0 Total consolidated income for the year 2009 was Rs. 8,725 crore, an increase of 9% as compared to Rs. 7,974 crore in 2008.

0 Consolidated profit before exceptional items and tax for the year 2009 was Rs. 2,251 crore against Rs. 1,582 crore in the 2008, an increase Of 42%.

0 Consolidated profit after tax for the year 2009was Rs. 1,564 crore as against Rs. 1,100 crore in2008, an increase of 42%.

0 The expansion project of the Bargarh Plant was substantially completed during the year.

0 . DIVIDEND a. your Company had paid an interim dividend of Rs.10 per equity share b. Directors are now pleased to recommend a final dividend to its equity share holders.

Particular 2009-10 2008-09 Change %

Production-million

tonnes

21.37 20.83 2.6

Sales value-rs crore 21.52 21.01 2.4

Sales value- rs crore 32.3% 25.5%  

CEMENT BUSINESS – PERFORMANCE AT A GLANCE

Management Discussion & Analysis

0 ECONOMIC SCENARIO AND OUTLOOK

a. The expansion of output in emerging market economies, particularly Asia, was the principal driver of this development. Trade is recovering and financial market conditions are improving

0 CEMENT INDUSTRY OUTLOOK AND OPPORTUNITIES

In 2010, we expect additional capacity of about 70 million tonnes to materialize, more than half of which is coming up in South West India. Despite a growing. Demand for cement, these capacity additions may create surpluses in some parts of the country

0MODERNISATION / EXPANSION / NEW PROJECTS

A major part of the Bargarh expansion project was completed and the Vertical Roller Mill and Captive Power Plant were commissioned during 2009. The next phase of the plant is expected to be commission -ed during the first quarter of 2010

0 . INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Internal Audit Department functions:

Independently, monitors and evaluates the efficacy and adequacy of internal control systems in the Company, and their compliance with operating systems, accounting procedures and policies at all the Company’s locations, including its subsidiaries.

Auditor Report 0 in accordance with auditing standards generally accepted in India

0 proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

0 the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account

0 the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards

0 These financial statements are the responsibility of the ACC Limited’s management and have been prepared by the Management on the basis of separate financial statements and other financial information regarding components

0 Auditors did not audited the financial statements of subsidiaries, whose financial statements reflect total assets.

0 the Consolidated Financial Statements have been prepared by the ACC Limited’s management in accordance with the requirements of Accounting Standards (AS) 21,

0 The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets

0 The management has conducted physical verification of inventory at reasonable intervals during the year.

0 The Company has not accepted any deposits from the public to which the provisions

0 The Company has no accumulated losses at the end of the financial year and it has not incurred

0 cash losses in the current and immediately preceding financial year.0 the Company has not given any guarantee for loans taken by

others from bank or financial institutions

RATIO ANALYSIS

Liquidity Ratio.0Current Ratio=1.11times.0Acid Test Ratio = 0.74times.

Solvency ratios.0Debt Equity Ratio = 0.09 times. 0 Interest Coverage Ratio = 28.22times.

Financial ratio’s analysis

Turn Over or Activities Ratio’s:0  Inventory Turn Over Ratio(ITR) = 10.21times 0 Inventory Velocity = 1.18 Months0Debtors Turn Over ratio(DTR) = 31.24times0Debtors Collection Period =0.38Months0Creditors Turn Over Ratio(CTR) = 1.78times0Creditors Payment Period = 6.74months 0Fixed Assets Turn = 2.31times 0Working Capital Turn Over ratio = 13.45times

Profitability Ratio.0 Operating Profit Ratio = 28.58%.0Net Profit Ratio = 13.29%. 0Return on Capital Employed = 33.09% .0Return On Net worth = 17.74%. 0EPS = Rs 102.01.0DPS = 22.86 per share.

Turn Over or Activities Ratio’s:0  Inventory Turn Over Ratio(ITR) = 10.21times 0 Inventory Velocity = 1.18 Months0Debtors Turn Over ratio(DTR) = 31.24times0Debtors Collection Period =0.38Months0Creditors Turn Over Ratio(CTR) = 1.78times0Creditors Payment Period = 6.74months 0Fixed Assets Turn = 2.31times 0Working Capital Turn Over ratio = 13.45times

Market Test Ratios/ Stock market related ratios 0Book value per Share 318.64 per share0Market Value Per Share(MPS) 980.900Price Earnings Ratio 9.92 times0 Expected price of the share 1555.7

conclusion0The company is able to perform well at the time of

global crisis. The company has also recorded growth at these difficult situations. The overall performance of the company is good and satisfactory. The company can also attract investments from various investors

Thank you