MIRA
INFORM REPORT
|
Report Date : |
02.05.2011 |
IDENTIFICATION DETAILS
|
Name : |
EVEREST INDUSTRIES LIMITED |
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Registered Office : |
Gat No: 152, Lakhmapur, Taluka Dindori , Nashik-422 202, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
03.04.1934 |
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Com. Reg. No.: |
11-2093 |
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CIN No.: [Company
Identification No.] |
L74999MH1934PLCC002093 |
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TAN No.: [Tax Deduction & Collection
Account No.] |
PNEE01437C |
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PAN No.: [Permanent Account No.] |
AAACE7550N |
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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 |
RATING & COMMENTS
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MIRA’s Rating : |
A (65) |
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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 6940000 |
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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. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office : |
Gat No: 152, Lakhmapur, Taluka Dindori Nashik;422202, |
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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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Tel No.: |
91-11-41731951/52 |
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Fax No.: |
91-11-46566370 |
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E-Mail : |
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Corporate Office : |
"Everest House", E-62, Greater Kailash – 1 |
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Factory : |
Everest
Nagar, P.O. Kymore - 438 880 Madhya Pradesh (Via Jukehi, C.R.) 'Everest
House' Gate
No. 152, Lakhmapur, Taluka Dindori, Nashik - 422 202 ( Podanur
P.O. Coimbatore - 641 023 (Tamil Nadu) |
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Zonal Office:: |
HS-37, 2nd Floor,
Kailash Colony Mkt., Tel No: 91-11-41618660/61 Fax No:
91-11-29238906 E-mail: nzsales@everestind.com Everest House’, 1, 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, 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., Tel:91-422-2413816,
2411118, 2413632 Fax : 91-422-2413633 e-mail : szsales@everestind.com |
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Sales Office at: |
Ż
Ashok Bhawan, 7th Floor, 93, Tel No:- 91-11-26286990/51618660/61/51619408/10 Fax No :- 91-11-26228906
Ż
Everest’ House, Tel. No.91 – 33 – 2469 5814 / 2469 7463 Fax No.91 – 33 – 2479 6920 Telex 91-21 – 8093 Telegram BIGSIX
Ż
Podanur P. O., Coimbatore-641023, Tel No :- 91-422-2413816/118 Fax No :- 91-422-2413633 E-mail :- szsales@everestind.com
Ż
PLN complex, 2nd Floor, 30/3, Tel No :- 91-44-28350455 Fax No :- 91-44-28353311
Ż 1st Floor, No. 4/2, First Main Road, Bhuvanappa Layout, Off Hosur Road, Bangalore-560029, Karnataka, India Tel No :- 91-80-51106668
Ż
C/o ACC Limited, No. 66-A, Tel No :- 91-40-27805162
Ż
41/880, D Second Floor, Tel No :-91-9847339938 |
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DIRECTORS
As on 29.07.2010
|
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.
Aditya Vikram Somani |
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Designation : |
Chairman
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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.
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.
Sandeep Junnarkar |
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Designation : |
Director |
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Name : |
Mr. M L Narula |
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Designation : |
Director |
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Name : |
Mr.
Manish Sanghi |
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Designation : |
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 |
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Name : |
Mr. Y Srinivasa Rao |
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Designation : |
Executive Director (Operations) |
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Name : |
Mr. Amitabh Das Mundra |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr.
Suresh Menon |
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Designation : |
Vice President and Company Secretary |
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Name : |
Mr. Neraj Kohil |
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Designation : |
Company Secretary and Head - Legal |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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|
|
|
|
|
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|
7,520,470 |
49.86 |
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|
7,520,470 |
49.86 |
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Total shareholding of Promoter and Promoter Group (A) |
7,520,470 |
49.86 |
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(B) Public Shareholding |
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|
|
|
|
|
|
1,022,046 |
6.78 |
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|
975 |
0.01 |
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|
200 |
- |
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|
742 |
- |
|
|
316275 |
2.10 |
|
|
1,340,238 |
8.89 |
|
|
|
|
|
|
1135942 |
7.53 |
|
|
|
|
|
|
3488755 |
23.13 |
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|
879455 |
5.83 |
|
|
719314 |
4.77 |
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|
225304 |
1.49 |
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|
494010 |
3.28 |
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|
6223466 |
41.26 |
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Total Public shareholding (B) |
7563704 |
50.14 |
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Total (A)+(B) |
15084174 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
Total (A)+(B)+(C) |
15084174 |
100.00 |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
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Line of Business : |
Manufacturing and |
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Products : |
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PRODUCTION STATUS (As on 31.03.2010)
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Particulars |
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Installed
Capacity |
Actual
Production |
|
Building Products |
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|
710000 |
584015 |
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|
30000 |
18087 |
GENERAL INFORMATION
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No. of Employees : |
874 (Approximately) |
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Bankers : |
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Facilities : |
Note: a. Loans from banks
on cash credit account of Rs.251.144 millions (previous year Rs.536.146
millions) are secured by a first pari-passu charge by way of hypothecation of
stocks, present and future, book debts and receivables and second pari-passu
charge on all fixed assets, land and buildings both present and future,
except land and building situated at Podanur plant (on which State Bank of
India has an exclusive charge) and at Kolkata plant. b. Term loans
include: (i) Corporate loan
of Rs.100.000 millions (previous year Rs.200.000 millions) from a bank is
secured by a first pari-passu charge by way of hypothecation of stocks,
present and future, book debts and receivables and exclusive first charge
over land and building at Podanur and second pari-passu charge on all fixed
assets, land and building both present and future, except land and building
situated at Podanur plant (on which State Bank of India has an exclusive
charge) and Kolkata plant (Due within one year Rs.100.000 millions, previous
year Rs.2.500 Millions (ii) Loan of
Rs.69.375 millions (previous year Rs.196.875 millions) from a bank secured by
way of creation of a first pari-passu charge on all fixed assets of the
Company excluding fixed assets situated at Podanur and Kolkata plants and
second pari-passu charge on all current assets of the Company (Due within one
year Rs. 69.375 millions, previous year Rs. 87.500 millions). c. External
commercial borrowing (ECB) of Rs. 4,09.050 millions (previous year Rs.
5,643.00 lakhs) is secured by a first pari-passu charge to be created over
all the immoveable and moveable fixed assets other than the immoveable fixed
assets situated at Podanur plant and second paripassu charge on all current
assets of the Company. d. Others include short term loans from bank aggregating to Rs.369.299
millions (previous year Rs.149.019 millions) by way of buyer's credit are
secured by a first pari-passu charge by way of hypothecation of stocks,
present and future, book debts and receivables and second pari-passu charge
on all fixed assets, land and buildings both present and future, except land
and building situated at Podanur plant (on which State Bank of India has an
exclusive charge) and at Kolkata plant. |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Deloitte
Haskins and Sells Chartered
Accountants |
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Address : |
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Holding Company: |
Everest Finvest ( |
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Membership: |
Confederation of Indian Industry |
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Associates: |
The Associated Cement Companies Limited |
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Subsidiary Company: |
Everest Building Solutions Limited |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
17000000 |
Equity Shares |
Rs.10/- each |
Rs.170.000 Millions |
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|
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
14815648 |
Equity Shares |
Rs.10/- each |
Rs.148.156
Millions |
|
|
|
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|
Of the above:
a. 15,000
(previous year -15,000) equity shares are allotted as fully paid up pursuant to
a contract without payment being received in cash
b. 13,350,020
(previous year - 13,350,020) equity shares are allotted as fully paid up by way
of bonus shares by
capitalization of
general reserve
c. 7,373,470
(previous year - 7,413,470) equity shares are held by M/s Everest Finvest (
Holding company upto 25 March, 2010
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
17000000 |
Equity Shares |
Rs.10/- each |
Rs.170.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15084174 |
Equity Shares |
Rs.10/- each |
Rs.150.842
Millions |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
148.156 |
148.000 |
148.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1588.785 |
1365.315 |
1265.412 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1736.941 |
1513.315 |
1413.412 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1198.867 |
1646.340 |
1118.315 |
|
|
2] Unsecured Loans |
0.000 |
200.000 |
200.000 |
|
|
TOTAL BORROWING |
1198.867 |
1846.340 |
1318.315 |
|
|
Stockiest
Deposits(unsecured) |
82.974 |
45.728 |
33.906 |
|
|
DEFERRED TAX LIABILITIES |
247.940 |
180.265 |
132.336 |
|
|
|
|
|
|
|
|
TOTAL |
3266.722 |
3585.648 |
2897.969 |
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2202.747 |
2345.827 |
1157.739 |
|
|
Capital work-in-progress |
63.285 |
69.418 |
1028.038 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.500 |
0.500 |
0.597 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1233.232
|
1295.652
|
789.982
|
|
|
Sundry Debtors |
231.858
|
238.435
|
68.894
|
|
|
Cash & Bank Balances |
192.069
|
225.811
|
315.295
|
|
|
Other Current Assets |
0.273
|
0.259
|
1.906
|
|
|
Loans & Advances |
447.578
|
328.667
|
200.846
|
|
Total
Current Assets |
2105.010
|
2088.824
|
1376.923
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
613.350
|
535.989 |
|
|
|
Other Current Liabilities |
350.315
|
287.917
|
563.138
|
|
|
Provisions |
144.568
|
101.842
|
102.190
|
|
Total
Current Liabilities |
1108.233
|
925.748
|
665.328
|
|
|
Net Current Assets |
996.777
|
1163.076
|
711.595
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
Foreign Currency Monetary Item Translation Difference Account |
3.413 |
6.827 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3266.722 |
3585.648 |
2897.969 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
6525.342 |
5294.516 |
2851.354 |
|
|
|
Other Income |
96.273 |
47.925 |
142.454 |
|
|
|
TOTAL (A) |
6621.615 |
5342.441 |
2993.808 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing Expenses |
6000.374 |
4891.749 |
2771.885 |
|
|
|
Increase
/ Decrease in stock |
(79.076) |
(86.642) |
(101.840) |
|
|
|
TOTAL (B) |
5921.298 |
4805.107 |
2670.045 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
700.317 |
537.334 |
323.763 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
99.520 |
164.806 |
46.995 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
600.797 |
372.528 |
276.768 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
183.654 |
171.380 |
96.446 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
417.143 |
201.148 |
180.322 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
117.016 |
56.638 |
37.149 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
300.127 |
144.510 |
143.173 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
623.905 |
537.683 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
General Reserve |
31.000 |
15.000 |
NA |
|
|
|
Proposed Dividend |
66.670 |
37.000 |
NA |
|
|
|
Tax on Distributed Profits |
11.331 |
6.288 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
815.031 |
623.905 |
537.683 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
387.545 |
356.105 |
155.120 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1289.248 |
1301.013 |
746.027 |
|
|
|
Traded Items |
23.736 |
13.171 |
23.212 |
|
|
|
Capital Goods |
21.854 |
99.541 |
19.958 |
|
|
|
Stores & Spares |
1.638 |
0.947 |
0.633 |
|
|
TOTAL IMPORTS |
1336.476 |
1414.672 |
789.830 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
20.28 |
9.76 |
9.67 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 (1st
Quarter) |
30.09.2010 (2nd
Quarter) |
31.12.2010 (3rd
Quarter) |
|
Net Sales |
2000.400 |
1449.200 |
1803.200 |
|
Total Expenditure |
1724.200 |
1350.300 |
1696.200 |
|
PBIDT (Excl OI) |
276.200 |
98.900 |
107.000 |
|
Other Income |
6.000 |
25.100 |
77.500 |
|
Operating Profit |
282.200 |
124.000 |
184.500 |
|
Interest |
15.000 |
13.900 |
10.600 |
|
Exceptional Items |
0.000 |
0.000 |
(0.800) |
|
PBDT |
267.200 |
110.100 |
173.100 |
|
Depreciation |
47.000 |
47.000 |
47.200 |
|
Profit Before Tax |
220.200 |
63.100 |
125.900 |
|
Tax |
65.200 |
16.900 |
26.200 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
155.000 |
46.200 |
99.700 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
155.000 |
46.200 |
99.700 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
4.53
|
2.70
|
4.78 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.39
|
3.80
|
6.32 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.68
|
4.54
|
7.11 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.24
|
0.13
|
0.13 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.33
|
1.85
|
1.40 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.90
|
1.92
|
2.07 |
LOCAL AGENCY FURTHER INFORMATION
History
Subject, formerly known as Eternit Everest commenced
business by taking over, as a growing concern, the erstwhile Asbestos Cement (
Its "Everest" brand enjoys huge brand equity.Besides roofing,t
he company has introduced a range of new generation products called E-Board
Classic for varied applications in interiors.
In 1988-89, Turner and Newall International,
of commissioning of the factory at
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
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 Limited and Accurate Finstock Private Limited
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
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
The company started in
The company commenced business by taking over, as a growing
concern, the erstwhile Asbestos Cement (
In 1988-89, Turner and Newall International,
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
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.
MANAGEMENT DISCUSSION AND ANALYSIS
Subject operates
in the infrastructure and construction sector. These are fundamental to
economic development and normally grow at twice the rate of GDP.
The Company is a
building solutions company. They provide ready-to-use building products and
pre-engineered buildings. All their products are eco-friendly and enable
construction with strength, speed and safety. This year, they have seen an
overall growth of 23%.
The Government is
committed to inclusive growth and has increased expenditure on rural and
infrastructure development. It has also focused on agriculture and education.
The Company operates in all these sectors. Programs like National Rural
Employment Guarantee Scheme, Indira Awas Yojana and Sarva Siksha Abhiyan are
rapidly expanding the demand for their building products. The thrust on
developing backward areas has led to an increase in construction of schools,
hospitals and housing. The Company has focused on expanding its existing
network to meet this demand. The Company serves 100,000 villages across 600
cites through 31 sales offices and 6,000 retail counters.
After a temporary
slowdown in new industrial activity during FY 2008-09, new project
announcements in
Financial Results
The company's Net
Sales/ Income from Operations increased to Rs. 6525.300 millions from
Rs.5294.500 millions in FY 08-09, a growth of 23%. This growth was a result of
volume growth of 10.7% in Building Products division and 47.8% in the Steel
Buildings division. In value terms the two divisions grew by 20.5% and 36.7%
respectively. Operating profits rose from Rs.537.300 millions (10.1% of sales)
to Rs.700.300 millions (10.7% of Sales). PAT for the year is Rs.300.100
millions, a 107% increase from last year. The return on average net worth
increased to 25.7 % from 13.7 % in the previous year.
Financial Performance
Strong cash flows
during the year resulted in savings in interest cost from Rs.164.800 millions
in the previous year to Rs.99.500 millions in the current year. Raw material
cost (including changes in inventory) was Rs.3579.700 millions (54.8% of sales)
from Rs.2723.600 millions (51.4% of sales).
The Balance Sheet
of subject continues to strengthen. Net worth of the Company stood at
Rs.1736.900 millions as at March 31, 2010 as compared with Rs.1513.300 millions
a year before, a growth of 14.7% during the year. Company's borrowings reduced
from 1846.300 millions a year ago to Rs.1198.900 millions this year. The debt
equity ratio as on 31 March 2010 stood at 0.69 as compared to 1.22 on 31 March
2009.
BUILDING PRODUCTS DIVISION
The demand for
Roofing
Rural prosperity
and liquidity give long term strength to the roofing market. There are
estimated 25 crore houses in
Amongst pucca
houses, less than half are made with RCC slabs. The rest are made with
ready-touse roofing products which include Fibre Cement Roofing and metal
roofing. Some roofs are also made using bricks and stone.
A kuccha roof home
owner has aspirations and seeks security. He is more likely to graduate to a
Fibre Cement Roof rather than a RCC slab. The cost of a pucca roof using Fibre
Cement Roofing is 1/3rd the cost of an RCC ceiling slab.
The market for
Fibre Cement Roofing today is estimated to be Rs.32500.000 millions and for
metal roofing Rs.35000 millions and
Boards and Panels
The concept of
environment-friendly construction is gaining importance. Increasing concern for
preserving natural resources and forests augurs well for
specified by
architects, interior decorators and contractors. Their products provide high
resistance to fire, termites and moisture. Everest offers a variety of products
which include solutions for ceilings, walls, external cladding, flooring and
internal walls.
The Boards
industry is large and fragmented. Boards made of different material such as
wood, plywood, gypsum, calcium silicate and fibre cement have been introduced
in the market within the last decade. Current industry size for wood based
products is Rs.42000 millions. Fibre Cement Boards (Rs. 2000 millions), Gypsum
boards (Rs. 5000 millions) and Calcium Silicate (Rs.500 millions) are new
product variants which meet specific customer requirements at similar price
points.
The application of
these products is very high in developed nations, and are particularly used in
large construction projects. Fibre Cement Boards are eco-friendly and enhance
LEED ratings in projects. Usage in
Their Fibre Cement
Boards provide higher safety from fire and termites and enable longer lasting
aesthetic finishes by preventing the attack of moisture. Everest boards are
well accepted in the retail market and the division has seen a strong growth in
retail counters this year.
Operations:
The fibre cement
industry in
Everest Fibre
Cement Boards are produced at Lakhmapur Works at Nashik,
Cost of goods sold
increased by 20% on account of increase in cement prices (15%-25% at their
plant locations), fibre prices (10%) and freight rates (8%). The increase in
raw material cost was primarily on account of changes in product mix and input
costs. Manpower cost during the year was Rs.630.200 millions (9.6% of sales) as
compared to Rs. 563.000 millions (10.6% of sales) in the previous year. Another
major item of cost, i.e. freight was Rs.453.700 millions (6.9% of sales) as
compared with Rs.385.000 millions (7.3% of sales) in the previous year.
All plants
undertook a drive to upgrade processes to increase raw material yields and
reduce on-line rejections. This has led to an increase in the availability of
their products and quality in the market. Constant training for the workers
resulted in, two of their plants increasing production volumes by 25% and one
plant achieving production
increase of 13%.
The benefits of these process improvements will be sustained in the long run.
Overall, the Building Products division grew by 21% in Sales revenue and 54% in
profit (EBIT) over the last year (mainly due to cost reduction and productivity
improvement carried out during the year.)
STEEL BUILDINGS DIVISION
In 2 years,
Everest Steel Buildings has undertaken 350 projects and is now established
amongst architects, structural consultants, project divisions of companies and
leading contractors operating in industrial and logistics sectors. The division
offers
projects completed
this year were nominated at the Essar Steel Infrastructure Excellence Awards
2010.
In
Low maintenance
costs, versatile use and ease of expansion are reasons why this is the
preferred construction method in most developed nations for decades. The
average world per capita steel consumption is 150 kg.
The market today
for PEB's in
Operations:
There are ten
organized PEB manufacturers in
Everest’s market
share in the PEB market is 5%. The division supplied 18,000 MT of steel buildings
and components this year and achieved a turnover of Rs.1250 millions, an
increase of 36.7% from last year.
Everest’s market
share in the PEB market is 5%. The division supplied 18,000 MT of steel buildings
and components this year and achieved a turnover of Rs.1250 millions, an
increase of 36.7% from last year.
OPERATIONS REVIEW
Net Sales Turnover
was Rs.6525.300 millions as compared to Rs.5294.500 millions during the
previous year. The profit after tax for during the year at Rs.300.100 millions
was higher as compared to the previous year.
Fixed Assets:
- Technical Knowhow
- Land-Freehold
- Land-Leasehold
- Leasehold Improvements
- Railway Siding
- Roads
- Water Supply Lines
- Plant and Machinery
- Furniture Fixture and
- Office Equipments
- Vehicles
- Leased Vehicle
As Per Web Site:
Profile:
Subject 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
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,
Trained manpower is the 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, Subject
has widened its horizons in the international arena. With consistent exports to
Europe, Africa,
Building
Solutions:
Subject is an organization which offers a wide range of
solutions for various building and housing construction needs. The company
plans to be a complete building solution provider to deliver Strength, Speed
and Safety to customers in all the target markets.
Today, the company’s product portfolio comprises Everest
Ceiling Solutions, Everest Wall Solutions, Everest Floor Solutions, Everest
Cladding Solutions, Everest Doors, Everest Roofing Solutions and Everest Steel
Building Solutions. Its products are popular for their high performance,
durability and architectural versatility.
Production
Facilities - Bhagwanpur
Everest Industries has established a green field, ultra-modern
manufacturing unit, spread over an area of 21 acres at Bhagwanpur, (Haridwar
district), Roorkee (Uttrakhand) . The plant manufactures the following products
- Roofing Sheets, Everest Fibre cement Boards,
The company believes in conserving the environment and hence, there are
several trees planted in the factory premises. The factory has made
arrangements for water harvesting. All water from the rooftop and open spaces
is channelized through the storm water drains and directed to the six recharge
wells which are strategically located. Apart from these wells there are 2 ponds
created to trap sudden heavy downpour. The factory does not discharge any of
its waste into the environment. Moreover, any industrial waste produced in the
Bhagwanpur unit is recyclable.
The plant also organizes safety training at the plant for their workers'
welfare by creating awareness among the workers about ways of handling
industrial materials, operating cranes and working with electrical circuits.
Products
- Wall
Solutions
- Ceiling
Solutions
- Floor
Solutions
- Chrysotile Asbestos
Cement Corrugated (CBS) Roofing Sheets
- Solid Wall
Panels
- Pre
Engineered Steel Buildings
- Smart Steel
Buildings
- Other Moulded
Goods (Accessories)
Initiatives
- Development
of Green Belt
- Rain Water
Harvesting
- Effluent
Treatment Plant for 100% recycling of process effluents
- Energy
Conservation
Welfare and social
activities
- Occupational
Health centre
- Canteen for
employees/workmen
- Everest
Ladies Club, Roorkee
- Community
Development
- Trained for
self employment for under privileged women- Tailoring and embroidering
CUREENT
HAPPENINGS
Everest Industries to set up new facility in
Date: 21-Mar-2011
Building material maker Everest Industries today said it
will set up a new manufacturing facility in
"We are looking at setting up a new manufacturing facility in one of the
Eastern states. The plant will be commissioned within a year and it will be
fully operational in 15 months," Everest Industries Executive Director
(Operations) Y Srinivasa Rao told PTI.
The company is looking at acquiring about 22 acres for the facility that will
start with the production of roofing materials and other products will be rolled
out in a phased manner, he added.
Rao, however, declined to share further details such as the possible location
and likely investment for the construction of the plant.
Industry sources, however, said the company has been offered land by the Orissa
government and the firm has also decided to go into the state.
When asked about its sales target, Rao said: "We cannot remain a
sub-thousand crore entity. Our target is to cross Rs. 1,0000.000 millions
revenue in next fiscal."
Everest is expecting its total income to grow 12-15% in this fiscal from Rs.
6600.000 millions in 2009-10, he added.
"For the last 4-5 years, our revenue has been increasing at 20-25%
compound annual growth rate. This year it is
slow because the market did not pick up well, and also because of our capacity constraints," Rao said.
Everest Industries currently has five manufacturing facilities in Kolkata,
Nashik,
"We are seriously considering to expand our steel building solutions
capacity as there is good growth in this business. We are looking at both
expanding the existing plants and adding more facilities," Rao said,
without giving details. The company's current annual production capacity for
steel building material is about 30,000 tonne at its Roorkee facility.
Besides, the company is likely to consider setting up a new factory for the
fibre cement boards as it is at present utilising almost 100% of its 90,000
tonne of installed capacity across different plants.
The company is now undertaking de-bottlenecking of operations and other
efficiency enhancement measures to increase productivity till the new plants
come up, he added.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.44.38 |
|
|
1 |
Rs.73.87 |
|
Euro |
1 |
Rs.65.83 |
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 |
Capability to overcome financial difficulties seems comparatively
below average. |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.