Deccan Cements Ltd. — AGM Information 2019

Aug 7, 2019

DECCAN CEMENTS LIMITED

CIN : L26942TG1979PLC002500 REGD OFFICE: 6-3-666/B, "DECCAN CHAMBERS", SOMAJIGUDA, HYDERABAD - 500 082. PHONE :+91 (40) 23310168,23310552, +91 (40) 23310561, 23310599 FAX: +91 (40) 23318366 E-MAIL: info@deccancements.com WEBSITE : www.deccancements.com

DCL:SECY:2019 ih August 2019

BSE Limited Corporate Relationship Department Phiroze Jeejeebhoy Towers Dalal Street Mumbai - 400001

National Stock Exchange of India Limited Listing Department Exchange Plaza, Plot No. C/1, G Block Bandra-Kurla Complex, Bandra (East) Mumbai - 400051

Scrip Code: 502137 Trading Symbol: DECCANCE

Sub: Proceedings of the 39th Annual General Meeting (AGM) held on ih August 2019.

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 201'5, the proceedings of the 39th Annual General Meeting (AGM) of the Members of the Company held on Wednesday, 7th August 2019, at 11:00 AM at Bhaskara Auditorium, Birla Museum, Adarsh Nagar, Hyderabad 500 063, is furnished below:

Mr. M B Raju, Executive Chairman of the Company, chaired the Meeting.

Before commencing the formal proceedings of the AGM, the Company Secretary delivered a welcome address to the Members, the Directors and the Auditors and others present at the Meeting.

The Company Secretary informed the members that the Company had provided remote e-voting facility for which the e-voting platform was open for voting by the members from 9:00 A.M. of 4th August, 2019 to 5:00 P.M. of 6 th August 2019. He further informed that the Company has also arranged for voting through polling paper on all the 6 (Six) Resolutions forming part of the Notice of the AGM dated 28th May, 2019, and requested the Members to deposit their duly filled up and signed polling papers into the Polling Box: He informed that Mr. B V Saravana Kumar, Practicing Company Secretary the Scrutinizer for the remote e-voting and polling process at the AGM is present at the meeting to conduct the voting in a fair and transparent manner and report the voting results. He also informed that the results of the voting will be submitted to the Stock Exchanges within forty eight hours of conclusion of this meeting and will also be displayed on the websites of the Company and of Karvy Computershare Private Limited. He informed that the Members including proxies

those who had not voted through remote e-voting are entitled to vote through the polling papers.

The Chairman started proceedings of the meeting by welcoming the Members. He introduced the Directors to the members.

Then the Chairman delivered his speech (copy enclosed) explaining the performance of the Company during the financial year 2018-19 and the prospects for the years ahead.

With the permission of the members, the Chairman took the Notice of the AGM, Auditors Report and Directors Report as read.

Then, the Chairman requested the Company Secretary to read out the agenda items contained in the AGM Notice dated 28th May, 2019.

The Company Secretary read out the resolutions contained in the Notice of the AGM. The businesses contained in the Notice of the AGM, which were transacted at the AGM are as under:

ORDINARY BUSINESS

• 1. Adoption of the Audited Financial Statements for the Financial Year ended 31st March 2019 together with the Reports of the Board of Directors' and Auditors' thereon - Ordinary Resolution.
• 1. Declaration of dividend of Rs.3.75/- (@75%) per equity share for the Financial Year 2018-19 - Ordinary Resolution.
• 1. Appointment of a Director in place of Mr. Gopalakrishnan Ramamurthi (DIN: 00296413) who retires by rotation and being eligible offers himself for reappointment - Ordinary Resolution.

SPECIAL BUSINESS

• 1. Ratification of Cost Auditor's remuneration for the Financial Year 2019-20 Ordinary Resolution.
• 1. Reappointment of Mr. K. P. Singh (DIN: 02951522), Non-Executive Independent Director for the Second Term of 5 (Five) consecutive years - Special Resolution.
• 1. To approve continuation of payment of remuneration to the Executive Directors who are promoters, in excess of threshold limits as per the SEBI (LODR) (Amendment) Regulations, 2018 - Special Resolution.

Then, the Chairman clarified the queries raised by the members present at the AGM.

The Chairman requested the members and proxies present at the meeting, who did not cast their vote through remote e-voting platform, wish to cast their vote may vote at the AGM. Accordingly, the members and proxies present at the meeting casted their votes at the AGM. After the vote, the Chairman requested the Scrutinizer to give their report within 48 hours.

Ms. P Parvathi, Managing Director offered votes of thanks to the Chair.

The Chairman declared the conclusion of the 39th Annual General Meeting.

Thank you,

With regards,

for Deccan Cements Limited

~

Bikr 'In Keshari Prusty Company Secretary

Encl: Chairman's Speech

Chairman's Speech

Dear Fellow Shareholders,

It gives me great pleasure in welcoming you to the ss" Annual General Meeting of the Company. I take this opportunity to brief you about the Company's performance in the Financial Year 2018-19 and the prospects for the years ahead.

Company's performance during 2018-19 with comparison to previous year is as under:

Particulars	2017-18	2018-19Id	Increase
NetSales	Rs.594.42Crores	Rs.651.41CroresncB	9.59%
PlantCapacityUtilization	65%	"77%	12%

As per credit rating agency 'ICRA' report, they expect a demand growth of eight per cent, which will likely to result in an improvement in the industry's utilisation to 71% in FY 2019-20from 65% in FY 2017-18.

Due to the increasing demand in various sectors such as housing, commercial construction and industrial construction, cement industry is expected to reach 550-600 Million Tonnes Per Annum (MTPA) by the year 2025.

Your Board has recommended final dividend of 75% i.e. Rs. 3.75/- per share for the financial year 2018-19.

Your Company is in the process of commissioning the cement packer unit (Packer-A) for automatic packing of cements, and loading them into the trucks and rail wagons at an estimated cost of Rs30.34 Crores. Recently, your company successfully commissioned the I" phase of packer-a, for loading of cements into trucks, and expecting to complete the 2 nd phase (for loading the cement bags directly into the railway wagons) by end of thisfinancial year.

Further, to economise the power cost, your company is in the process of commissioning Waste Heat Recovery plant. The total project cost is estimated to Rs.64.90 Crores, and is expected to be completed in the currentfinancial year.

Power generated from the captive Thermal Power Plant continues to be consumed captively in the Cement Plant. Power generated from the Hydel and Wind Power Plants was completely sold to third parties.

We remain dedicated and vigilant about the operations of your Company. We seek the cooperation from all the stakeholders involved. I express sincere appreciation to my colleagues on the Board, Management and Employees at all level for their valuable contributions. I thank Central and State Governments, Bankers, Business Associates, Customers and other Stakeholders for their support and cooperation. My sincere thanks to our shareholders. I lookforward to your continued support.

Thankyou.

Hyderabad

August ~ 2019 Executive Chairman