BSE: 518011 | NSE: | ISIN: INE145L01012
Market Cap: [Rs.Cr.] 22.54 | Face Value: [Rs.] 10
Industry: Cement - South India
Industry Structure and Developments:
The Indian economic growth rate has been quitter id compared to other emergingeconomies primarily due to higher reliance on domestic demand. The growth trajectory isexpected to continue on the back of strong domestic demand and huge outlay oninfrastructure planned by the Government. The long-term domestic outlook remains buoyantwith the progressive reforms, increasing FDI, robust investments, growing incomes andaspirations. India being one of the major producers of cement and the demand is largelybased on Infrastructure Projects, Urban development and housing, Roads and Buildings,Ports etc., However, the cost of the raw material and fuel namely Limestone, Coal, Powerand Freight charges are all controlled by the Government and any increase in the price ofthe above mentioned items affects the cost of the production on which the company does nothave any control. Thus, industry has been to in ups and downs. The Government spending oninfrastructure is likely to benefit the revenue and earnings of all the cement companiesacross the country. Notwithstanding the excess capacity built-up, the cement industry isexpected to add 30-40 million tonnes of capacity in 2013. The industry has a capacity of324 million tonnes per annum (mtpa) and operates at 75-80 per cent utilization, due toweak cement demand from realty and infrastructure sectors. The retail price for cement,which was hovering around Rs.280 in the month of February 2012, fell to Rs.200-240 by themiddle of this year. It subsequently decreased and today the price is stands in the rangeof Rs.180-Rs.200.
Opportunities and Threats:
The demand will be driven by Governments continued thrust on infrastructuredevelopment and to boost rural and housing sector. Infrastructure development is need ofthe nation; this along with rising housing provision will accelerate constructionactivity. Recovery of the global scenario could also provide impetus to economic growthand Cement demand. The Operations of Cement companies in Andhra Pradesh suffers dueto lower realizations and lower demand in the state. The state has seen newer players andalso the existing players expanding capacities due to huge availability of limestone,which is the primary material for cement.
The drying up of Government contracts through irrigation, infrastructure and housingprogrammes, was a major reason for hitting the industry during the year.
Concerns of the Indian Cement Industry are high cost of Power and Coal, high freightcost, inadequate infrastructure, non availability of Wagons, and poor quality of coal andheavy taxes / royalty levies. Excess supply of cement in the market because of newentrants and frequent imposition of power holidays by the APCPDCL would affect thesustainability of operations.
Industry Structure and Developments:
Your Company is one of the few companies specialized in manufacturing flexible printedcircuit boards in India. The flexible PCBs being sold by the Company in India is an importsubstitute. The PCB industry purely depends on growth of electronic industry. TheElectronic Industry is looking up and doing well, giving a scope for PCB industry toexpand.
Opportunities and Threats:
Spreading into domestic market, as an import substitutes a major opportunity for theCompany. However, due to fall in exports, there is a constraint on DTA eligibility.Therefore, the Company would have to make DTA sales by paying full Excise Duty, which isan additional burden on the margins. The company has been following this system throughout the year under review. Undervaluation of our Indian rupee makes imported raw materialprices dearer.
SEGMENT OR PRODUCT-WISE PERFORMANCE:
Segment-wise or product-wise performance has already been furnished elsewhere in thisreport.
This has been discussed elsewhere in this Report.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The company is following a proper and adequate system of internal controls in respectof all its activities including safeguarding and protecting its assets against loss fromunauthorized use of disposition. Further all transactions entered into by the company areduly authorized and recorded correctly. M/s. Pavuluri & Co., Chartered Accountants,Hyderabad has been working as the Internal Auditors of the company. The Internal Auditorsare submitting reports to the company on a Quarterly basis.
This has been already discussed elsewhere in this Report.
HUMAN RESOURCES/INDUSTRIAL RELATIONS:
The company enjoys very cordial industrial relations, due to which there is very lowemployee/ labour turnover in the company. You will be happy to note that ever since theinception of the Company, there were no strikes, lockouts, lay-offs, retrenchments, etc.
Your Directors are thankful to Canara Bank, Somajiguda Branch, Andhra Bank, SCF Branchand Indian Bank, Main Branch, Koti for their continued support during the year underreview and acknowledge with gratitude the help extended by the Central Government andGovernment of Andhra Pradesh. Your directors also wish to place on record theirappreciation of the services rendered and co-operation extended by the Workmen, Staff,Dealers, Customers and other concerned.
|By Order of the Board of Directors|
|Place: Hyderabad||(J. Triveni)|
|Date: 29-05-2013||Executive Chairperson|
|25-Feb-14||Keerthi Industries reports net loss of Rs 2.58 crore in the September 2013 quarter|
|25-Feb-14||Keerthi Industries reports net loss of Rs 5.50 crore in the June 2013 quarter|
|25-Feb-14||Keerthi Industries reports net loss of Rs 4.82 crore in the December 2012 quarter|
|24-Feb-14||Keerthi Industries reports net loss of Rs 3.89 crore in the September 2012 quarter|
|23-Feb-14||Keerthi Industries reports net loss of Rs 0.99 crore in the June 2012 quarter|
|23-Feb-14||Keerthi Industries net profit declines 79.05% in the December 2011 quarter|
|11-Nov-14||India Cements plans to raise Rs.500 crore|
|03-Nov-14||JK Lakshmi Cement rallies 4% as profit triples|
|31-Oct-14||JK Lakshmi Q2 net profit at Rs. 30.61 crore|
|31-Oct-14||Ambuja Cement up over 1% after Q3 outcome|
|31-Oct-14||Ambuja Cements Q3 net profit at Rs 2390.60 mn|
|30-Oct-14||ACC Q3 net profit at Rs1926mn|
J S Rao , Managing Director
J Sivaram Prasad , Director
E Siva Sankaram , Director
Boddu Venkata Subbaiah , Director
Company Head Office / Quarters:
Mellacheruvu(Village & Mandal),
Phone : Telangana-91-08683-226028 / Telangana-
Fax : Telangana-91-08683-226039 / Telangana-
E-mail : firstname.lastname@example.org
Web : http://www.keerthiindustries.com
XL Softech Systems Ltd
Plot No 3 Sagar Soci,Road No 2,Banjara Hills,Hyderabad - 500034
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