MIRA
INFORM REPORT
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Report Date : |
08.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
EVEREST INDUSTRIES LIMITED |
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Registered Office : |
Gat No: 152, Lakhmapur, Taluka Dindori Nashik;422202, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
03.4.1934 |
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Com. Reg. No.: |
002093 |
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CIN No.: [Company
Identification No.] |
L74999MH1934PLCC002093 |
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Legal Form : |
Public Limited Liability Company. Company’s shares are listed on the
stock exchange. |
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Line of Business : |
Manufacturing and Sale of Fibre Cement Products. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 7000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having fine track.
The company is progressing well. Directors are reported as experienced and
respectable businessmen. Trade relations
are reported as fair. Business is active. Payments are usually correct
and as per commitments. Fundamentals are strong and healthy. The company can be considered normal for business dealings at usual
trade terms and conditions. The company can be regarded as a promising business partner in a
medium to long-run. |
LOCATIONS
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Registered Office : |
Gat No: 152, Lakhmapur, Taluka Dindori Nashik;422202, Maharashtra |
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Tel No: |
91-2557-250375/250462 |
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Fax No: |
91-2557-250376 |
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E-mail: |
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Website : |
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Head Office : |
A-32,
Mohan Co-operative Industrial Estate, Mathura Road, New Delhi-110044 |
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Fax No.: |
91-11-41731951/52 |
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E-Mail : |
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Corporate Office : |
"Everest House", E-62, Greater Kailash – 1 New Delhi - 110
048 |
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Factory 1 : |
Everest Nagar, P.O. Kymore - 438 880 Madhya Pradesh (Via Jukehi, C.R.) 'Everest House' Taratola Road, Garden Reach, Calcutta - 700 024 Gate No. 152, Lakhmapur, Taluka Dindori, Nashik - 422 202
(Maharashtra) Podanur P.O. Coimbatore - 641 023 (Tamil Nadu) |
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Zonal Office:: |
HS-37, 2nd Floor,
Kailash Colony Mkt., New Delhi – 48 Tel No:
91-11-41618660/61 Fax No:
91-11-29238906 E-mail: nzsales@everestind.com Everest House’, 1,Taratola Road, Garden Reach, Kolkata - 700 024. Tel:91-33-24695814 Fax:91-33-24697463 E-mail:ezsales@everestind.com Everest Industries Limited Gundecha Onclave, Office Premises No. 5B4, ‘B’ Wing, 5th Floor, Kherani Road Next to Post Office, Sakinaka, Andheri(E), Mumbai - 400072 Tel : 91-22-67250279 Fax : 91-22-67250278 e-mail : wzsales@everestind.com Podanur P.O., Coimbatore - 641023, Tamil Nadu Tel:91-422-2413816,
2411118, 2413632 Fax : 91-422-2413633 e-mail : szsales@everestind.com |
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Sales Office at: |
¯ Ashok Bhawan, 7th Floor, 93, Nehru Place, Post Bag No. 3, New Delhi-110019, India Tel No:- 91-11-26286990/51618660/61/51619408/10 Fax No :- 91-11-26228906 ¯ Everest’ House, Taratolla Road, Garden Reach, Kolkata – 700 024, West Bengal, India Tel. No. 91 – 33 – 2469 5814 / 2469 7463 Fax No. 91 – 33 – 2479 6920 Telex 021 – 8093 Telegram BIGSIX ¯ Podanur P. O., Coimbatore-641023, Tamilnadu, India Tel No :- 91-422-2413816/118 Fax No :- 91-422-2413633 E-mail :- szsales@everestind.com ¯ PLN complex, 2nd Floor, 30/3, East Conran Smith Road, Gopalpuram, Chennai-600086, Tamilnadu, India Tel No :- 91-44-28350455 Fax No :- 91-44-28353311 ¯ 1st Floor, No. 4/2, First Main Road, Bhuvanappa Layout, Off Hosur Road, Bangalore-560029, Karnataka, India Tel No :- 91-80-51106668 ¯ C/o ACC Limited, No. 66-A, Rashtrapathi Road, Secunderabad-500003 Tel No :- 91-40-27805162 ¯ 41/880, D Second Floor, Golden Plaza, Chittour Road, Ernakulam-682018 Tel No :-91-9847339938 |
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¯
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DIRECTORS
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Name : |
Mr. Aditya Vikram Somani |
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Designation : |
Director |
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Date of Birth: |
04.11.1973 |
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Qualification: |
M.Com,MBA |
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Date of Appointment: |
07.11.2005 |
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Name : |
Mr. Anil Singhvi |
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Designation : |
Director |
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Date of Birth: |
30.06.1959 |
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Qualification: |
B.Com, FCA |
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Date of Appointment: |
07.11.2005 |
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Name : |
Mr. Sandeep Junnarkar |
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Designation : |
Director |
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Name : |
Mr. Mohanlal Bhandari |
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Designation : |
Director |
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Date of Birth: |
15.11.1948 |
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Qualification: |
B.Com, FCA |
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Date of Appointment: |
07.07.2004 |
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Name : |
Mr.M.L.Gupta |
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Designation : |
Managing Director |
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Date of Birth: |
03.02.1941 |
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Qualification: |
B.Tech.(Hons) |
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Date of Appointment: |
08.07.2002 |
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Name : |
Mr. Manish Sanghi |
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Designation : |
Executive Director |
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Date of Birth: |
04.02.1963 |
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Qualification: |
B.E (Mechanic) , PGDM(IIM) |
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Date of Appointment: |
08.07.2002 |
KEY EXECUTIVES
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Name : |
Mr. Suresh Menon |
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Designation : |
Vice President & Company Secretary |
MAJOR SHAREHOLDERS
AS ON 30.06.2008
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Shareholding of Promoter and
Promoter Group[2] |
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Bodies Corporate |
7413470 |
50.09 |
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Public
shareholding[3] |
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Mutual Funds/ UTI |
2252562 |
15.22 |
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Financial Institutions/ Banks |
325 |
0.00 |
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Central Government/ State Government(s) |
200 |
0.00 |
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Insurance Companies |
187 |
0.00 |
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Foreign Institutional Investors |
24550 |
0.17 |
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Non-institutions |
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Bodies Corporate |
504450 |
3.41 |
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Individuals - |
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i. Individual shareholders holding
nominal share capital up to Rs. 1 lakh. |
2228853 |
15.06 |
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ii. Individual shareholders holding nominal share capital
in excess of Rs. 1 lakh. |
918892 |
6.21 |
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Any Other - NRI/Trusts |
1434684 |
9.69 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and Sale of Fibre Cement Products. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Fibre Cementr Products: |
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455000 |
320694 |
GENERAL
INFORMATION
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No. of Employees : |
Total:874 |
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Bankers : |
State Bank of India ICICI Bank Limited |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
M/s Deloitte Haskins & Sells, Chartered Accountants. |
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Address : |
New Delhi |
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Membership: |
Confederation of Indian Industry |
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Associates: |
The Associated Cement Companies Lilmited. |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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17000000 |
Equity Shares |
Rs.10/- each |
Rs.170.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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14800020 |
Equity Shares |
Rs.10/- each |
Rs.148.000
Millions |
Of the above:
a. 15,000 (previous
year -15,000) equity shares are alloted as fully paid up pursuant to a contract
without payment being received in cash
b. 1,33,50,020
(previous year - 1,33,50,020) equity shares are alloted as fully paid up by way
of bonus shares by capitalisation of general reserve
c. 74,13,470
(previous year - 74,13,470) equity shares are held by M/s Everest Finvest
(India) Private Limited, the holding company
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
148.000 |
148.000 |
148.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1265.400 |
1197.200 |
1149.844 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1413.400 |
1345.200 |
1297.844 |
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LOAN FUNDS |
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1] Secured Loans |
1127.700 |
683.700 |
204.254 |
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2] Unsecured Loans |
233.900 |
29.800 |
0.000 |
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TOTAL BORROWING |
1361.600 |
713.500 |
204.254 |
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Stockiest
Deposits(unsecured) |
0.000 |
0.000 |
28.317 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
121.664 |
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TOTAL |
2775.000 |
2058.700 |
1652.079 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1157.700 |
1040.300 |
992.413 |
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Capital work-in-progress |
1028.100 |
672.900 |
121.068 |
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INVESTMENT |
0.600 |
0.100 |
0.097 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
789.900
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579.900
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522.092
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Sundry Debtors |
68.900
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104.000
|
28.791
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Cash & Bank Balances |
315.300
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172.300
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140.286
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Other Current Assets |
0.000
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0.000
|
0.458
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Loans & Advances |
626.400
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552.200
|
218.252
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Total
Current Assets |
1800.500
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1408.400
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909.879
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
702.000
|
564.900
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289.794
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Provisions |
509.900
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498.100
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90.966
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Total
Current Liabilities |
1211.900
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1063.000
|
380.760
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Net Current Assets |
588.600
|
345.400
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529.119
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
9.382 |
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TOTAL |
2775.000 |
2058.700 |
1652.079 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Sales Turnover |
3070.100 |
3257.900 |
2548.253 |
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Other Income |
142.500 |
30.400 |
12.641 |
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Total Income |
3212.600 |
3288.300 |
2560.894 |
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Profit/(Loss) Before Tax |
180.400 |
178.200 |
426.961 |
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Provision for Taxation |
37.200 |
61.600 |
115.653 |
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Profit/(Loss) After Tax |
143.200 |
116.600 |
311.308 |
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Earnings in Foreign Currency : |
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Traveling Expenses |
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2.521 |
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Know-how |
NA |
NA |
3.965 |
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Professional Fee |
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|
0.554 |
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Other |
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|
3.700 |
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Total Earnings |
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10.740 |
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Imports : |
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Raw Materials |
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486.033 |
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Stores & Spares |
NA |
NA |
2.413 |
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Capital Goods |
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|
15.405 |
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Total Imports |
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503.851 |
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Expenditures : |
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Raw
Materials |
1644.300 |
1617.600 |
0.000 |
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Excise
Duty |
229.900 |
234.300 |
0.000 |
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Power
& Fuel Cost |
140.700 |
119.100 |
0.000 |
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Other
Manufacturing Expenses |
257.100 |
238.800 |
0.000 |
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Employee
Cost |
318.500 |
258.900 |
0.000 |
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Selling
and Administration Expenses |
475.700 |
527.900 |
0.000 |
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Miscellaneous
Expenses |
212.000 |
281.500 |
0.000 |
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Manufacturing Expenses |
0.000 |
0.000 |
21.19.837 |
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Interest |
0.000 |
0.000 |
137.25 |
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Depreciation & Amortization |
96.400 |
89.100 |
74.632 |
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Other Expenditure |
0.000 |
0.000 |
0.000 |
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Total Expenditure |
3374.600 |
3367.200 |
233.909 |
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QUARTERLY RESULTS
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PARTICULARS |
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30.06.2008 (1ST
Quarter) |
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Sales
Turnover |
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|
1187.700 |
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Other
Income |
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|
4.200 |
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Total
Income |
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|
1191.900 |
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Total
Expenditure |
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|
1020.600 |
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Operating
Profit |
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|
171.300 |
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Interest |
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|
23.100 |
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Gross
Profit |
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|
148.200 |
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Depreciation |
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|
35.800 |
|
Tax |
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|
33.700 |
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Reported
PAT |
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|
78.700 |
KEY RATIOS
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Debt-Equity
Ratio |
0.75 |
0.36 |
0.15 |
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Long
Term Debt-Equity Ratio |
0.43 |
0.15 |
0.02 |
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Current
Ratio |
1.01 |
1.08 |
1.18 |
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TURNOVER
RATIOS |
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Fixed
Assets |
1.63 |
1.90 |
1.78 |
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Inventory |
4.48 |
5.91 |
5.15 |
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Debtors |
35.51 |
49.06 |
75.06 |
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Interest
Cover Ratio |
3.05 |
7.55 |
25.46 |
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Operating
Profit Margin(%) |
7.80 |
9.04 |
16.62 |
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Profit
Before Interest And Tax Margin(%) |
4.66 |
6.30 |
13.69 |
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Cash
Profit Margin(%) |
5.53 |
6.31 |
12.47 |
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Adjusted
Net Profit Margin(%) |
2.39 |
3.58 |
9.54 |
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Return
On Capital Employed(%) |
5.93 |
11.48 |
25.46 |
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Return
On Net Worth(%) |
5.32 |
8.82 |
20.24 |
LOCAL AGENCY
FURTHER INFORMATION
History
Everest Industries Ltd., formerly known as Eternit Everest commenced
business by taking over, as a growing concern, the erstwhile Asbestos Cement
(India) at Kymore, Madhya Pradesh. The company manufactures fibre based cement
products,such as sheets for roofing and interiors as well as Non Asbestos flat
sheets for varied applications including pre-fab housing. The company was the
first to manufacture asbestos cement roofing sheets in India at its first
factory commissioned in May '34. Its manufacturing business was progressively
expanded by establishing a second sheeting factory at Mulund, Bombay, in 1937,
a third one at Calcutta in Oct.'38 and a fourth at Podanur (near Coimbatore),
Tamilnadu, in Nov.'53. In Sep.'57, a another sheeting plant was installed at
the Kymore factory. Plants to manufacture pipes were added between 1938 and
1963.
Its "Everest" brand enjoys huge brand equity.Besides
roofing,the company has introduced a range of new generation products called
E-Board Classic for varied applications in interiors.
In 1988-89, Turner & Newall International, UK, sold its stake in the
company to Eteroutremer, Belgium, the holding company of the Eternit group,
Belgium. It obtained central government approval to shift part of the
production capacity of the Mulund works to Nashik and to shift the balance
capacity within one year from the date
of commissioning of the factory at Nasik.
The company is venturing into non-asbestos-based roofing and panelling
products. In addition to the fire-resistant boards being developed with the
active assistance of the Etex group, the company has also initiated the
introduction of passive fire protection systems with technical support from an
Etex group company. It has obtained ISO-9002 and ISO 14001 certification for
its Podanur works.
The Etex Group, through its subsidiary Nefibouw BV of Netherlands acquired
during 2000-2001, 0.54% of equity shares from the open market to take the
Group's stake to 50%.
In Feb. 2002 Associated Cement Companies, has acquired 74,00,010 equity shares
(cositituting 50% of the total equity capital) by Inter se transfer between
promoters. Total shareholding of voting rights after this acquisition comes to
1,12,50,030 equity shares (constituting 76.01 % of the total equity capital of
the company). The company is Modernising its Podanur, Kymore and Kolkatta works
and the these projects have been completed
The company has expanded the increased capacity of Fibre Cement/Asbestos
Cement products during the financial year 2002-03 by 72000 MT and with this
expansion,the total capacity has risen to 360000 MT.
ACC is holding 76.01% stake in Everest Industries as on 31.03.2004.
Adani Port Infrastructure Ltd and Accurate Finstock Pvt Ltd have
announced an open offer to acquire 20% stake in Everest Industries during April
2004.The open offer follows the agreement entered into by Swiss based Holcim
which has signed a pact with Adani Ports to offload ACC's present stake of
76.01% in Everest Industries.
Background:
The company is the pioneer of asbestos fibre products in India. The company was set up by the Tatas and the Eternit Group of Belgium.
The company is a part of ACC Group, the leading company in the cement sector in the country. ACC has 76% equity in the company.
During its existence of over 65 years in India, the company has been the pioneer in the manufacturing of fibre cement roofing products and flat sheets.
The company started in India in 1934 with a first manufacturing unit at Kymore in Madhya Pradesh. Presently the company has 3 other plants at Kolkata in West Bengal, at Podanur in Tamilnadu and at Nashik in Maharashtra. It has a modern R&D Centre at Nashik.
The company commenced business by taking over, as a growing concern, the erstwhile Asbestos Cement (India) at Kymore, Madhya Pradesh. The company was the first to manufacture asbestos cement roofing sheets in India at its first factory commissioned in May,1934. Its manufacturing business was progressively expanded by establishing a second sheeting factory at Mulund, Mumbai in 1937, a third one at Kolkata, West Bengal in October,1938 and a fourth at Podanur (near Coimbatore), Tamilnadu, in November, 1953. An another sheeting plant was installed at the Kymore factory in September,1957. The company plants to manufacture pipes were added between 1938 and 1963.
In 1988-89, Turner and Newall International, UK, sold its stake in the company to Eteroutremer, Belgium, the holding company of the Eternit group, Belgium. It obtained Central Government approval to shift part of the production capacity of the Mulund works to Nashik and to shift the balance capacity within one year from the date of commissioning of the factory at Nasik.
The company is venturing into non-asbestos-based roofing and panelling product. In addition to the fire-resistant boards being developed with the active assistance of the Etex group, the company has also initiated the introduction of passive fire protection systems with technical support from an Etex group company. It has obtained ISO-9002 and ISO 14001 certification for its Podanur works.
The Etex Group, through its subsidiary Nefibouw BV of Netherlands acquired during 2000-2001, 0.54% of equity shares from theopen market to take the Group’s stake to 50%.
In February, 2002 Associated Cement Companies, has acquired 74,00,010 equity shares (constituting 50% of the total equity capital) by inter se transfer between promoters. Total shareholding of voting rights after this acquisition comes to 1,12,50,030 equity shares (constituting 76.01% of the total equity capital of the company). Subject is Modernising its Podanur, Kymore and Kolkata works and the these projects are likely to be completed by end of the financial year.
OPERATIONS
REVIEW:
Net Sales Turnover was Rs. 2851.400 Millions as compared to Rs. 3037.700
Millions during the previous year. However, the net profit during the year at
Rs. 143.100 Millions was higher as compared to the previous year.
The Company is now a complete building solutions company from roofing to
exterior cladding to ceiling to flooring to walling to doors and even the
complete structure. The Company is continuously expanding its product portfolio
and penetrating new markets.
COMMENCEMENT OF COMMERCIAL
PRODUCTION:
The Company has already completed the erection of new multi-manufacturing
facility at Bhagwanpur (near Roorkee), Distt. Haridwar to manufacture fibre
cement roofing sheets, flat boards, light gauge steel frames and Rapicon
panels. The commercial production of fibre cement roofing sheets has commenced
w.e.f. 1st April, 2008.
To make the growth process more inclusive, the 11th Five Year Plan
indicates a strong focus on infrastructure investment, social development and
agriculture and rural development. To improve credit availability to farmers
the Government is providing Rs. 2800000.000 Millions for the year 2008 of Rs.
200000.000 Millions has been made for irrigation. Further, the Government has
provided an expenditure of Rs. 312800.000 Millions for rural development
through its flagship programme Bharat Nirman. This will bring renewed vigour and
infrastructural growth in India's rural and agricultural economy. This sector
comprises 8.5% of India's GDP and directly affects the lives of 70% of India's
population.
Everest is a trusted brand for corrugated roofing sheets and is distributed
through a retail network of more than 5000 outlets across India. Fibre cement
roofing sheets are the most economical roofing material in the country and
provide shelter and durability with a life of more than 50 years. The company
has geared up to meet the increase in demand which will arise from the
Government's initiative and rural prosperity.
The industrial and construction sector in India has recorded high growth
rates in the last five years. New projects in segments such as ports, railways,
roads, airports, manufacturing, power, oil and gas, and urban infrastructure
are on the anvil. The need of the hour is Speed. Everest fulfills the need for
faster construction with a variety of offerings like Roofing Solutions, Ceiling
Solutions, Wall Solutions, Cladding Solutions, Floor Solutions, Door Solutions
and Steel Building Solutions. Everest has also focused on export markets in
Middle East, Africa, Europe and Asia Pacific.
The year under review has been a challenging year for Everest. Cement
prices increased by 23% and fibre prices by 7%. Thus input costs increased by
9%.
Demand for building products grew, as anticipated by their industry, and
continues to expand rapidly. The last two years saw a spurt in Industry
capacity and supply which has put pressure on sales realisations.
Production for the industry increased 10% from 2.963 Millions MT to 3.25
Millions MT and Sales volumes were 3.180 Millions MT as compared to 2.84
Millions MT last year, on increase of 12% but realisations declined by 9%. The
new financial year has already started with increase in demand and improved
sales realisations. Demand is expected to see strong growth rates: company has
initiated several programmes to expand, market, offer more choices and
solutions to its customer:'' further expand the product range, service
capability production capacity. The positive impact of these initiatives
visible in coming years.
Operations
Central India-Kymore Works:
Kymore Works, the first fibre-cement roofing plant of the country, continues
to excel ii production efficiency. During the year production volumes increased
by 5.30/ over previous year. Products from Kymore Works dispatched to
high-freight northern market will now be replaced by supplies from their new
Bhagwanpur Works in Uttarakhand. This will reduce outward freight cost in
Financial Year 2008-09.
Eastern India-Kolkata Works:
Kolkata Works performance remained stable. Capacity enhancement and
quality improvement projects are planned in Financial Year 2008-09.
Southern India-Podanur Works (Coimbatore):
Podanur Works improved machine productivity and efficiency during the
year by 9%. capacity improvement project is under implementation and results will
be visible in F.Y 2008-09. The Hi-Tech roofing plant has been stabilized in
productivity and quality through various R&D initiatives.
Western India-Lakhmopur Works (Nashik):
Roofing line at Lakhmapur Works improved production volumes by 5.2% and
raw material yield by 4% during the year.
Northern India-Bhagwanpur Works (Roorkee):
Everest has set up a state-of-the-art plant at Roorkee, Uttarakhand.
Everest Bhagwanpur s Rs 86 crore project comprises 3 production
lines.
1. Corrugated Fibre Cement Roofing Line:
Installed capacity of 1,00,000 MT which increases the company's roofing
capacity by 20%.
2. Flat Cement Boards Line:
Installed capacity of 5000O MT which enhances the company's boards
capacity by 50%
3. Solid Wall Panel line:
Installed capacity of 10,000 panels per month, which doubles the
company's production capability.
Bhagwanpur Works has commenced commercial production in April 2008. It
will supply their products to the northern markets which were hither to high
freight markets for Everest.
Expansion and Growth Plans:
Everest has embarked on a vigorous growth phase with the establishment of
Everest Steel Building Solutions. The concept of metal frame buildings is
taking root amongst corporate India and the industry is growing at 40%
annually. Everest's Steel Building Solutions Division will have a strong design
team of structural engineers and will manufacture and erect customized steel
rigid frame buildings.
A greenfield plant at Everest's Bhagwanpur Unit at Uttarakhand with a
production capacity of 30,000 MT per annum, will cater to the growing demand
for pre-engineered factories, warehouses, workshops, railway stations, aircraft
hangers, sports halls and distribution centres.
The project is underway as per target and is expected to be completed
this financial year.
Fixed Assets:
- Technical Knowhow
- Land-Freehold
- Land-Leasehold
- Building-on Freehold Land
- Building-on Leasehold Land
- Leasehold Improvements
- Railway Siding
- Roads
- Water Supply Lines
- Plant & Machinery
- Furniture Fixture &
- Office Equipments
- Vehicles
- Leased Vehicle
List of related
parties
i.Parties where
control exists and with which there have been transactions during the year
M/s Everest Finvest (India) Pvt
Ltd (from 14 October, 2005)
Associated Cement Companies
Limited (ACC) upto 14 October, 2005
ii Fellow
Subsidiaries of erstwhile holding company with which there have been
transactions during the year
•
ACC Machinery Company Limited upto 14 October, 2005
• Bargarh Cements Limited upto 14 October, 2005
• ACC Ninon
Castings Limited upto 14 October, 2005
As Per Web Site:
During its existence of over 65 years in India,
Everest Industries Limited has been the pioneer in the manufacturing of fibre
cement roofing products and flat sheets.
The company started in India in 1934 with a first
manufacturing unit at Kymore in Madhya Pradesh. Presently the company has 3
other plants in Kolkata, at Podanur in Tamil Nadu and at Nasik in Mahrashtra.
It has a modern R&D centre at Nasik.
The company has a wide and well organized sales and
distribution network all over the country. With a turnover of around Rs
2000.000 Millions( Rs 2 billion), the company is going through a phase of
consolidating its recently launched new generation products and maintaining the
leadership status in Fibre cement Industry
Everest Industries Limited provides you with the world-class building
solutions to meet the construction requirements, in the Industrial, Commercial and
Residential sectors.
Historically, Everest has provided rural shelters by making corrugated
roofing sheets available to farmers at a competitive price. The company is
poised to capitalize on the opportunities in rural India where various housing and
infrastructure initiatives are envisaged by the Government.
Today, Everest offers a complete range of building solutions which
includes Ceilings, Walls, Flooring, Cladding, Doors, Roofing and Pre-Engineered
Steel Buildings. These are produced at Everest's state-of-the-art ISO: 14000
certified manufacturing facilities at Kymore, Nashik, Coimbatore, Kolkata and
Roorkee. With over 4000 retail points spread across the nation together with
the strength of over 1285 highly qualified and experienced engineers, designers
and technicians, Everest provides you building solutions that successfully meet
the highest standards of quality and durability.
Trained manpower is their dedicated strength at Everest. Apart from
continuous development of employee skills, the company is also committed to
their welfare.
After successfully catering to the Indian market, Everest Industries
Limited has widened its horizons in the international arena. With consistent
exports to Europe, Africa, Australia and Asia, Everest is all set to scale new
heights and establish a strong foundation in the global market. Banking on its
74 years of experience and highly sophisticated technology, Everest assures you
that all its products live up to its promise of Strength, Speed and Safety.
Everest Industries expands product portfolio
R. Ravikumar
Chennai , Jan. 12
Everest Industries
Ltd, once a subsidiary of ACC, has recently expanded its product ambit to offer a range of
multipurpose cement boards, meant primarily for internal applications such as
false ceilings, dry wall partitions and internal linings in residential,
commercial and industrial sectors. This follows its decision to move away from
being just a building product
company to a building solutions company.
According to Mr Manish Sanghi, Executive Director, Everest Industries, while its E-Board range can find applications such as
false ceilings, panelling, doors, backliners (for cupboards and cabinets), wall
cladding, flooring and pre-fabricated structures, Rapicon suits walling
solutions for internal walls, external walls and prefab housing.
Easy-assembly tiles
Another product,
Acostyle, is a mineral fibre tile which combines styling and acoustic
properties to enable better interiors for commercial establishments and offices.
These tiles are coated with vinyl latex paint resulting in light reflection of
over 85 per cent, making interiors appear brighter.
As these ready-to-use tiles come with a universally-accepted
tongue-and-groove joint system for easy assembly, it can be built in just a few
hours unlike brick and mortar walls, says Mr Sanghi. "This will also
increase the carpet area by up to 5 per cent."
Everest Industries
currently produces four-lakh tonnes of roofing sheets and 75,000 tonnes of
boards a year and has manufacturing facilities in Kymore (Madhya Pradesh),
Kolkata (West Bengal), Coimbatore (Tamil Nadu) and Nashik (Maharashtra).
Technology transfer
In its Coimbatore facility, the company, in technical collaboration with
Chennai-based Saint Gobain, manufactures Everest Hi-Tech, an impact resistance non-asbestos corrugated
roofing system. "Apart from the technology transfer, as per the contract,
Saint Gobain would supply a key raw material only to Everest," he said.
Elaborating on the company's growth plans, Mr Sanghi said, "They
have commenced a major expansion programme aimed at increasing their production
capacity to meet the demand from the rapidly expanding construction
sector."
According to him, the company is scheduled to commission a greenfield
facility set up at an investment of Rs 700.000 Millions at Bhagwanpur in
Uttaranchal soon. The new facility would manufacture 50,000 tonnes of fibre
boards and one lakh tonnes of roofing products per annum to cater to the
northern markets.
Focus on roofs
Since roofing products are the company's mainstay, and 70 per cent of
the company's sales come from rural areas, its focus is more on the rural
markets.
Everest Industries
is currently organising road shows, in the villages of Tamil Nadu, for roofing
sheets. The company is now targeting Coimbatore, Erode, Salem, Namakal, and
Karur through these campaigns.
Madison Communications is handling the company's advertising account and
the company earmarked Rs 70.000 Millions for its marketing activities for the
current fiscal.
Everest Industries
recorded a growth of over 11 per cent in turnover with Rs 2540.000 Millions in
the last fiscal, up from Rs 2270.000 Millions the previous year.
"They are scheduled to grow at 20 per cent in the current financial
year, and on track to increasing their turnover to Rs 3000.000 Millions this
fiscal and to Rs 5000.000 Millions by 2008-09," says Mr Sanghi.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.26 |
|
UK Pound |
1 |
Rs.79.00 |
|
Euro |
1 |
Rs.63.53 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
|
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
65 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|