MIRA INFORM REPORT
|
Report Date : |
06.03.2014 |
IDENTIFICATION DETAILS
|
Name : |
EVEREST INDUSTRIES LIMITED |
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Registered
Office : |
Gat No.152, Lakhmapur, Taluka Dindori, Nashik – 422202, Maharashtra |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
03.04.1934 |
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Com. Reg. No.: |
11-2093 |
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Capital
Investment / Paid-up Capital : |
Rs.151.873 Millions |
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CIN No.: [Company Identification
No.] |
L74999MH1934PLC002093 |
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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 : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturing
and Trading of products like Roofing Products, Ceilings, Walls, Flooring,
Cladding, Doors, Pre-engineered Steel Buildings and Other Building Products
and Accessories |
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|
|
|
No. of Employees
: |
840 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (62) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 12000000 |
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|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is an old and well established company having a fine track
record. Financial position of the company seems to be sound. Trade relations are
reported as fair. Business is active. Payments are reported to be regular and
as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
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 – December 1, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
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High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
The worst is over for India’s economy with gross domestic product likely
to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s
Analytics. Concerns over the rupee and current account deficit are under control,
said the agency. Ratings firm Crisil has forecast 6 % growth for 2014/15 up
from the estimated 4.8 % for 2013/14. Total economic growth,
infrastructure bottlenecks and lack of transparency and consistency in foreign
direct investment policies seem to have taken a toll on India’s attractiveness
as an investment destination, says an Ernst & Young survey. Projects
with FDI component fell 16.4 % across the globe in 2012 from the previous
year. The drop in India was steeper at 21 %. State run carrier Air India
is doling out free tickets to its 24000 employees, even as it expects to incur
a loss of Rs.39000 mn this financial year and has a debt of Rs 350000 mn.
550000 number of jobs generated across India in 2013, a fall of 0.4 % as
compared to with a year earlier. The National Capital Region has a
one-fourth share in total jobs created, according to a study by industry lobby
group Assochem, Banks, real estate, automobile and telecommunications sectors
are showing a rise of job creation. $ 805 mn investments by venture capital
firms in India during 2013, registering a drop of about 18 % over the previous
year. The Information Technology and IT-Enabled Services Industry retained
its status as the favourable venture capital investors in 2013. Pakistan has temporarily
banned gold imports for the second time in six months, as it tries to stem
smuggling into India. India’s import duty on gold is 10 % and curbs on
purchases have dried up legal imports into what used to be the world’s biggest
bullion buyers. The World Gold Council puts the amount smuggled into India at
upto 200 tonnes in 2013. The Reserve Bank of India has proposed that unclaimed
bank deposits estimated to be about Rs.35000 mn be used for education and
awareness among depositors. According to the plan, deposits that have not
been claimed for at least 10 years will be transferred to the scheme.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long Term Rating: A+ |
|
Rating Explanation |
Have adequate degree of safety and carry low
credit risk. |
|
Date |
26.02.2014 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Shirt Term Rating: A1 |
|
Rating Explanation |
Have very strong degree of safety and carry
lowest credit risk. |
|
Date |
26.02.2014 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED
MANAGEMENT NON CO-OPERATIVE
Contact No.: 91-2557-250462
LOCATIONS
|
Registered Office/ Factory: |
Gat No. 152, Lakhmapur, Taluka Dindori, Nashik – 422202, Maharashtra,
India |
|
Tel. No.: |
91-2557-250375/ 462 |
|
Fax No.: |
91-2557-250376 |
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E-Mail : |
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Website : |
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Head/ Corporate Office : |
Genesis, A-32 Mohan Co-operative Industrial Estate Mathura Road New Delhi
- 110 044, India |
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Tel. No.: |
91-11-41731951/ 52 |
|
Fax No.: |
91-11-46566370 |
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E-Mail : |
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Factories : |
Kymore Works Everest Nagar,
P.O. Kymore, District Katni - 438 880 Madhya Pradesh, India Kolkata Works ‘Everest House’
1, Podanur Works Podanur P O., Coimbatore - 641023, Tamilnadu, India Bhagwanpur Works Khasra Nos.158
and 159, Village Lakesari, Pargana Bhagwanpur, Tehsil Roorkee, District
Haridwar – 247661, Somnathpur Works Z5, IID Centre,
Somnathpur, Tehsil Remuna, District. Baleshwar – 756019, Odisha, India Ranchi Works Sarwal Namkum,
Opposite Tola – Charna Bera Ranchi – 834010, Jharkhand, India |
DIRECTORS
(AS ON 31.03.2013)
|
Name : |
Mr. Aditya Vikram Somani |
|
Designation : |
Chairman |
|
Date of Birth |
04.11.1973 |
|
Qualifications |
MBA, PGDM, M.Com. |
|
Date of Appointment |
07.11.2005 |
|
|
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|
Name : |
Mr. M. L. Gupta |
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Designation : |
Vice Chairman |
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|
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|
Name : |
Mr. Manish Sanghi |
|
Designation : |
Managing Director |
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Date of Birth |
04.02.1963 |
|
Qualifications |
08.07.2002 |
|
Date of Appointment |
B.E. (Mech.), PGDM (IIM-A) |
|
|
|
|
Name : |
Mr. Y. Srinivasa Rao |
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Designation : |
Executive Director (Operations) |
|
Qualifications |
B.Sc. Engg. (Mechanical) |
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|
Name : |
Mr. Mohanlal Bhandari |
|
Designation : |
Director |
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Name : |
Mr. Sandeep Junnarkar |
|
Designation : |
Director |
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|
Name : |
Mr. Madan Lal Narula |
|
Designation : |
Director |
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Date of Birth |
25.10.1940 |
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Qualifications |
B.Sc. Engineering (Electrical) |
|
Date of Appointment |
30.01.2008 |
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|
|
|
Name : |
Mr. Amitabh Das Mundhra |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. B. L. Taparia |
|
Designation : |
Director |
|
Date of Birth |
05.07.1950 |
|
Qualifications |
B.Com, LL.B., F.C.S. |
|
Date of Appointment |
10.5.2013 |
KEY EXECUTIVES
|
Name : |
Mr. Bhushan |
|
Designation : |
Accounts Department |
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|
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|
Name : |
Mr. Neeraj Kohli |
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Designation : |
Company Secretary |
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|
Name : |
Mr. Manish Garg |
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Designation : |
President and Chief Executive (SBS) |
|
Qualifications |
Diploma in Engineering, AMIE |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 31.12.2013)
|
Category of
Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter
Group |
|
|
|
|
|
|
|
|
7520470 |
49.51 |
|
|
7520470 |
49.51 |
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|
|
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|
Total shareholding of Promoter and Promoter
Group (A) |
7520470 |
49.51 |
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(B) Public Shareholding |
|
|
|
|
|
|
|
|
1300631 |
8.56 |
|
|
225 |
0.00 |
|
|
200 |
0.00 |
|
|
187 |
0.00 |
|
|
17118 |
0.11 |
|
|
1318361 |
8.68 |
|
|
|
|
|
|
|
|
|
|
1191092 |
7.84 |
|
|
|
|
|
|
|
|
|
|
3201473 |
21.08 |
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|
1447928 |
9.53 |
|
|
511391 |
3.37 |
|
|
174433 |
1.15 |
|
|
336958 |
2.22 |
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|
6351884 |
41.81 |
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|
|
|
Total Public shareholding (B) |
7670245 |
50.49 |
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|
|
|
Total (A)+(B) |
15190715 |
100.00 |
|
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|
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|
(C) Shares held by Custodians and against
which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
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|
|
|
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Total (A)+(B)+(C) |
15190715 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing
and Trading of products like Roofing Products, Ceilings, Walls, Flooring, Cladding,
Doors, Pre-engineered Steel Buildings and Other Building Products and
Accessories |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
840 (Approximately) |
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Bankers : |
·
State Bank of ·
ICICI Bank Limited ·
Axis Bank Limited ·
HDFC Bank Limited ·
Kotak Mahindra Bank Limited ·
DBS Bank Limited |
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Facilities : |
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Banking
Relations : |
-- |
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Financial Institution : |
· 3i Infotech Trusteeship Services Limited 3rd to 6th Floor, International Infotech Park,
Tower No.5, Vashi Railway Station Complex, Vashi, Navi Mumbai – 400703,
Maharashtra, India |
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|
|
|
Auditors : |
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|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
Gurgaon, Haryana, India |
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Associates Company: |
· Everest Building Solutions Limited (Has Not Commenced Operations) |
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Other Related Parties: |
· Falak Investment Private Limited (with effect from 10 May, 2011) · Everest Finvest (India) Private Limited (till 9 May, 2011) |
CAPITAL STRUCTURE
(AS ON 26.07.2013)
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 |
|
|
|
|
|
|
15194665 |
Equity Shares |
Rs.10/- each |
Rs.151.947
Millions |
|
|
|
|
|
(AS ON 31.03.2013)
Authorised Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
17000000 |
Equity Shares |
Rs.10/- each |
Rs.170.000 Millions |
|
|
|
|
|
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15187290 |
Equity Shares |
Rs.10/- each |
Rs.151.873
Millions |
|
|
|
|
|
Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15187290 |
Equity Shares |
Rs.10/- each |
Rs.151.873
Millions |
|
|
|
|
|
NOTE:
Of the above:
15,000 (previous year
15,000) equity shares are allotted as fully paid up pursuant to a contract
without payment being received in cash 13,350,020 (previous year 13,350,020)
equity shares are allotted as fully paid up by way of bonus shares by
capitalisation of general reserve
The Company has
one class of equity shares having a par value of Rs.10 each. Each shareholder
is eligible for one vote per share held.
FINANCIAL DATA
[All figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
151.873 |
151.127 |
150.841 |
|
(b) Reserves & Surplus |
2745.852 |
2343.995 |
1934.187 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share
Application money pending allotment |
0.000 |
0.000 |
0.390 |
|
Total
Shareholders’ Funds (1)+(2) |
2897.725 |
2495.122 |
2085.418 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
591.020 |
155.610 |
225.800 |
|
(b) Deferred tax liabilities (Net) |
245.656 |
238.959 |
240.845 |
|
(c)
Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(d)
long-term provisions |
75.758 |
75.829 |
30.387 |
|
Total
Non-current Liabilities (3) |
912.434 |
470.398 |
497.032 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
952.012 |
551.056 |
791.767 |
|
(b)
Trade payables |
1089.117 |
731.632 |
661.314 |
|
(c)
Other current liabilities |
958.913 |
774.213 |
634.341 |
|
(d)
Short-term provisions |
202.428 |
187.130 |
126.387 |
|
Total
Current Liabilities (4) |
3202.470 |
2244.031 |
2213.809 |
|
|
|
|
|
|
TOTAL |
7012.629 |
5209.551 |
4796.259 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
2065.026 |
2190.432 |
2139.989 |
|
(ii)
Intangible Assets |
48.500 |
12.127 |
9.393 |
|
(iii)
Capital work-in-progress |
371.146 |
78.801 |
74.667 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
0.245 |
0.245 |
0.245 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan
and Advances |
432.937 |
332.648 |
252.243 |
|
(e)
Other Non-current assets |
1.422 |
20.957 |
0.000 |
|
Total
Non-Current Assets |
2919.276 |
2635.210 |
2476.537 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
2541.660 |
1579.835 |
1535.453 |
|
(c)
Trade receivables |
523.495 |
417.047 |
321.402 |
|
(d)
Cash and cash equivalents |
528.531 |
330.316 |
186.638 |
|
(e)
Short-term loans and advances |
487.428 |
241.763 |
220.149 |
|
(f)
Other current assets |
12.239 |
5.380 |
56.080 |
|
Total
Current Assets |
4093.353 |
2574.341 |
2319.722 |
|
|
|
|
|
|
TOTAL |
7012.629 |
5209.551 |
4796.259 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
10141.329 |
8868.612 |
7230.951 |
|
|
|
Other Income |
87.525 |
177.903 |
116.485 |
|
|
|
TOTAL (A) |
10228.854 |
9046.515 |
7347.436 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
5902.861 |
4750.491 |
3944.061 |
|
|
|
Purchases of stock-in-trade (traded goods) |
159.310 |
136.177 |
57.847 |
|
|
|
Changes in
inventories of finished goods, work-in-progress and stock-in-trade |
(443.792) |
11.839 |
(139.847) |
|
|
|
Employee benefits expense |
920.970 |
797.472 |
693.695 |
|
|
|
Other expenses |
2624.167 |
2365.026 |
2014.656 |
|
|
|
TOTAL (B) |
9163.516 |
8061.005 |
6570.412 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1065.338 |
985.510 |
777.024 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
55.799 |
44.375 |
56.256 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1009.539 |
941.135 |
720.768 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
220.524 |
200.816 |
188.960 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
789.015 |
740.319 |
531.808 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
264.018 |
212.698 |
124.774 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
524.997 |
527.621 |
407.034 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1453.151 |
1101.481 |
815.031 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
52.500 |
53.000 |
41.000 |
|
|
|
Dividend |
113.905 |
105.789 |
68.694 |
|
|
|
Tax on Dividend |
19.358 |
17.162 |
10.890 |
|
|
BALANCE CARRIED
TO THE B/S |
1792.385 |
1453.151 |
1101.481 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Goods Exported |
561.101 |
566.312 |
483.562 |
|
|
TOTAL EARNINGS |
561.101 |
566.312 |
483.562 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
2414.059 |
1657.332 |
1600.994 |
|
|
|
Stores & Spares |
13.678 |
10.243 |
6.268 |
|
|
|
Capital Goods |
1.357 |
35.042 |
52.985 |
|
|
|
Others |
58.121 |
88.126 |
34.584 |
|
|
TOTAL IMPORTS |
2487.215 |
1790.743 |
1694.831 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
34.70 |
34.96 |
27.10 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
5.13
|
5.83 |
5.54 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.78
|
8.35 |
7.35 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
11.88
|
14.43 |
11.26 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.27
|
0.30 |
0.26 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.53
|
0.28 |
0.49 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.28
|
1.15 |
1.05 |
FINANCIAL ANALYSIS
[All figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR in Mlns.) |
(INR in Mlns.) |
(INR in Mlns.) |
|
Share Capital |
150.841 |
151.127 |
151.873 |
|
Reserves & Surplus |
1,934.187 |
2,343.995 |
2,745.852 |
|
Net worth |
2,085.028 |
2,495.122 |
2,897.725 |
|
|
|
|
|
|
long-term borrowings |
225.800 |
155.610 |
591.020 |
|
Short term borrowings |
791.767 |
551.056 |
952.012 |
|
Total borrowings |
1,017.567 |
706.666 |
1,543.032 |
|
Debt/Equity ratio |
0.488 |
0.283 |
0.532 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR in Mlns) |
(INR in Mlns) |
(INR in Mlns) |
|
Revenue from Operations |
7,230.951 |
8,868.612 |
10,141.329 |
|
|
|
22.648 |
14.351 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR) |
(INR) |
(INR) |
|
Revenue from Operations |
7,230.951 |
8,868.612 |
10,141.329 |
|
Profit |
407.034 |
527.621 |
524.997 |
|
|
5.63% |
5.95% |
5.18% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
----- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm / promoter
involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
No |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if
available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director,
if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
------------------------------------------------------------------------------------------------------------------------------
CASE DETAILS
BENCH:-BOMBAY
|
Presentation
Date:- |
11/10/2013 |
|
Lodging No.:- |
ITXAL/1661/2013 |
Filing Date:- |
11/10/2013 |
Reg. No.:- |
ITXA/2372/2013 |
Reg. Date:- |
17/12/2013 |
|
Petitioner:- |
Commissioner of Income Tax – Thane - I |
Respondent:- |
Everest Indusatries Limited |
|
Petn. Adv.:- |
Suresh Kumar (0) |
Resp. Adv.:- |
Mint and Confreres (0) |
|
District:- |
Thane |
|
Bench:- |
DIVISION |
||
|
Status:- |
Pre-Admission |
Category:- |
TAX APPEALS |
|
Next Date:- |
28/03/2014 |
Stage:- |
|
Coram:- |
ACCORDING TO SITTING LIST |
|
ACCORDING TO SITTING LIST |
|
Act :- |
Income Tax Act, 1961 |
Under Section:- |
260A |
------------------------------------------------------------------------------------------------------------------------------
PERFORMANCE REVIEW
The year 2012-13 proved
to be a challenging year amidst global economic uncertainty. In India, economic
growth and capital investment slowed down due to high interest rates, inflation
and drought in some parts of the country. Despite these constraints, the
Company performed well. Highlights of the performance are:
1. Revenue from
operations increased by 14.35% to Rs.10141.300 Millions.
2. PBDT increased
by 7.28% to Rs.1009.600 Millions.
3. Profit before
Tax increased by 6.57% to Rs.78.90 Millions.
4. Cash profit was
Rs.745.500 Millions.
5. Production of
Fibre Cement Products increased by 6.1% to 696,772 MT
6. Production of Steel Buildings increased by 4.4% to 24,485 MT.
NEWLY COMMISSIONED PROJECT
The Company’s fibre cement products plant at Baleshwar, Odisha is
completed and under trial run. Commercial operation is expected to commence
soon. The plant capacity is 1,00,000 MT annually.
NEW PROJECTS
The Company has
made significant progress in setting up a metal roofing plant at Ranchi and trial
production is likely to commence soon.
The Company has
decided to expand the Steel Buildings business by setting up a Pre-engineered
Building plant at Dahej Industrial Estate, Phase III in Gujarat at a cost of
Rs.500.000 Millions with an annual capacity of 30,000 MT. Land for the same has
been allotted by the Govt. of Gujarat. This unit will cater to the needs of
industry in Western India, especially Gujarat.
MANAGEMENT
DISCUSSION AND ANALYSIS
INDIAN ECONOMY
Indian economy
countered multi-fold challenges in the fiscal year 2012-13. The growth of the
economy was affected by slowing of infrastructure investments, tight monetary
conditions, higher fiscal deficit, increasing current account deficit, higher
inflation, and global recessionary conditions in the developed economies. As a
result, the GDP growth slowed down to 5% in 2012-13 compared to the 6.2% growth
witnessed in 2011-12.
The outlook of the
Indian economy on a long term looks optimistic. With the softening global
commodity prices, improved economic conditions in the US, pickup in Indian
exports, reversal of interest rates, fiscal consolidation, reviving of private
investment and implementation of various policy measures, the growth of the
economy is expected to be better. Further, with the general elections due in
2014, the government will expedite its policy measures to boost the growth of
the economy.
INDUSTRY OVERVIEW
Roofing segment
Healthy economic
growth recorded in the first decade (2001-2010) had an impressive impact on the
housing sector in India. From 249.000 Millions in 2001 to 330.800 Millions in
2011, the total number of houses in India increased by 8.17 crore units,
recording a growth of 32.81% in the last 10 years. Urban housing recorded a
growth of 53.91% while rural housing grew by 24.30%. At present, housing sector
contributes around 5% of India’s GDP. With institutional credit for housing
investment poised to grow at a CAGR of 18-20% in the next 3-5 years, housing
sector’s contribution to GDP is likely to increase to 6%.
Rural Housing
About 72% of
India’s population live in rural areas and depend on agriculture and allied
activity for their sustenance. Of this, nearly half of the population lives in
kutcha (thatched roofs) or semi-pucca houses (clay tiles), lacking access to
basic amenities like drinking water, sanitation and electricity. Security
concerns coupled with rising income level drives the desire of rural India to
shift from kutcha house (having thatched roof) to pucca house. The cost of a
pucca roof using fibre cement roofing is only one-third the cost of an RCC
slab, making it more affordable. This is driving the demand for fibre cement
roofing in rural India. As per the Working Group on Rural Housing for the
Twelfth Five Year Plan (2012-17), the total rural housing shortage is estimated
at around 4.36 crore units. This will translate into a tremendous demand for
roofing products in rural areas
Rural Commercial
With rising
disposable income in the hands of rural India, roofing sheets are extensively used
in all form of construction such as farm house, poultry farms, cow sheds,
generator rooms, shops, parking sheds, room extensions, garages, workshops,
toilets, etc. With purchasing power in rural India increasing rapidly over the
years and commercial activity in rural parts of the country expanding, demand
for roofing products will increase significantly.
Institutional
buildings segment
Institutional
buildings sector comprises of large organized commercial buildings, retail
outlets, warehousing and industrial spaces.
Commercial
buildings
Commercial real
estate market was subdued during 2012-13. Demand for office lease rentals
gained momentum briefly in the first half of 2012 but existing vacancy levels
prevented major appreciation in lease rentals. A lean demand scenario has
delayed project execution. It is estimated that by 2012-14 around 229 million
sq. ft. of additional office space will be released in 10 major cities.
Organized retail
space
Organized retail
real estate segment has faced an oversupply situation in anticipation of retail
boom in the country. Since the first half of 2012, lease rentals have remained
flat in most micro-markets of the 10 major cities. Total planned supply across
10 major cities is 81 million sq. ft. of which around 44 million sq. ft. is
expected to be released in the next two years.
Warehousing space
Growth of
organized retail, manufacturing sector, factory production, logistics
outsourcing and the likely rollout of Goods and Service Tax (GST) is pushing
the need for better and improved warehousing facilities. As per a KPMG report
on warehousing industry in India, the demand for warehousing space is estimated
to grow from around 391 mn sq. ft. in2010 to around 476 mn sq. ft. in 2013, at
a CAGR of around 6.8% during this period. The relaxation of
foreign direct
investment (FDI) policies in multi-brand retail and a 100% FDI permitted under
the automatic route in built-up infrastructure is likely to further boost
investments in this sector.
Industrial space
Roofing sheets and steel buildings are the most sought after
construction systems in industrial spaces owing to ease and speed of
installation, high strength, light weight and resistance to fire. Roofing
products are in high demand for factories, site offices, security cabins,
parking sheds, canteens, storage godowns, etc. With the rise in
industrialization, construction of industrial spaces will see a huge growth
which will translate into an even higher demand for roofing and building products.
OPERATIONS
Everest fibre cement roofing products are produced at Kymore (Madhya
Pradesh), Kolkata, Podanur (Coimbatore, Tamil Nadu), Lakhmapur (Nashik,
Maharashtra) and Bhagawanpur (Roorkee, Uttarakhand). A modern roofing line with
an annual capacity of 1,00,000 MT per annum is set up at Somnathpur (Baleshwar,
Odisha) and production trials are on. Fibre cement boards and panels are
produced at Lakhmapur works (Maharashtra) and Bhagawanpur works (Uttarakhand).
The production line at Kymore works, which was modernized in 2011-12 reached
its full capacity in the reporting year with improved quality. During the year,
the building products division produced 6.85 lac MT of roofing products and
Boards and Panels, an increase of 5.5% over the previous year.
The industrial strike called by labour union at Lakhmapur in November,
2011 was called off in January, 2013. Officers and staff of Lakhmapur Works
worked hard all throughout the strike period to ensure supply, meet customer
demand and continue operations in the plant.
In order to improve operational efficiency and reduce costs, the company
has undertaken many key initiatives:
• A Business Excellence team was formed to study and further improve processes and systems. This team is also helping in standardizing processes across units to increase efficiency.
• A company wide initiative has been initiated to become a zero discharge organization.
• A corporate Technical Cell is being created to improve technology absorption and upgrade technology across works to improve quality, productivity and cost reduction.
• A centralized sourcing team has been created to bring in purchase efficiency.
• Everest introduced an e-auction platform for sourcing of goods and services. This has resulted in savings in an inflationary market.
FINANCIAL HIGHLIGHTS
• Revenues from building products segment increased 15.8% to Rs.7685.500
Millions compared to Rs.6636.600 Millions in the previous year owing to higher
realizations.
• EBIDTA increased from Rs.680.000 Millions to Rs.876.000 Millions, an
increase of 28.82% due to better cost control.
ROCE of the
segment registered a marginal decline of 20 bps from 22.8% to 22.6% due to
increase in capital employed in the segment primarily on account of planned
higher inventory.
OUTLOOK
Government’s initiatives
of providing employment opportunities coupled with the focus on increasing
minimum support price (MPS) of primary farm products has given more disposable
income in rural India. Elections are round the corner and Government’s
continued thrust to provide adequate shelter to the rural poor by increasing
its outlay on various schemes will boost demand for roofing sheets.
At Everest, the
focus will be on improving production of roofing products in order to meet the
emerging demand. We will start producing roofing sheets from their newly
constructed Odisha plant and stabilize the production by the end of 2013.
Production from this new plant will help us to cater to the rising demand of
roofing sheets in eastern India. As part of market share enhancement strategy,
the Company will explore options for augmenting capacity at existing locations
to keep pace with the growing demand for its products. The company’s R&D
team will focus on optimising cost of production by introducing new and
alternate raw materials. It will also focus on reducing cost of production,
enhance processes and improve capacity utilization.
CONTINGENT
LIABILITIES
Claims against the
Company not acknowledged as liabilities in respect of:
|
Particulars |
31.03.2013 Rs. in millions |
31.03.2012 Rs. in millions |
31.03.2011 Rs. in millions |
|
|
|
|
|
|
Sales tax
matters |
447.592 |
423.861 |
424.418 |
|
Customs, excise
and service tax matters |
281.627 |
20.620 |
17.399 |
|
Income Tax
matters |
652.348 |
697.274 |
223.661 |
|
Total |
1381.567 |
1141.755 |
665.478 |
|
|
|
|
|
|
Advance paid /
adjusted by Income Tax authorities against above |
337.515 |
354.702 |
212.971 |
· Guarantees aggregating to Rs.254.076 Millions issued by banks have been secured by a first pari-passu charge on the entire current assets, present and future, including receivables of the Company and second pari-passu charge on all fixed assets, land and buildings present and future, except land and building situated at Kolkata.
· Estimated amount of contracts to be executed on capital account – Rs.159.818 Millions (net of advances – Rs.77.318 Millions), [previous year – Rs.114.254 Millions (net of advances Rs.96.955 Millions)].
· Export Obligation: The Company has purchased fixed assets under the ‘Export Promotion Capital Goods Scheme’. As per the terms of the license granted under the scheme, the Company had undertaken to achieve an export commitment of Rs.751.869 Millions (Previous year Rs.995.022 Millions) over a period of 8 years.
· The Company has filed for satisfaction of its export obligations of Rs. Nil (Previous year Rs.312.299 Millions) during the year ended 31 March, 2013, the balance export obligation as at the year end being Rs.751.869 Millions (Previous year Rs.682.723 Millions). The Company would be liable to pay customs duty of Rs.93.984 Millions (Previous year Rs.85.340 Millions) and interest on the same in the event of non-fulfillment of the balance export obligation. However the Company does not expect any liability to arise based on its export performance.
INDEX OF CHARGES
|
S. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10415557 |
20/02/2013 |
619,200,000.00 |
DBS BANK LTD. |
UPPER GROUND
FLOOR, BIRLA TOWER 25, BARAKHAMBA ROAD, NEW DELHI, DELHI - 110001, INDIA |
B71957641 |
|
2 |
10369338 |
23/01/2013 * |
100,000,000.00 |
DBS BANK LTD. |
UPPER GROUND
FLOOR, BIRLA TOWER, 25, BARAKHAMBA |
B69633345 |
|
3 |
10303259 |
23/01/2013 * |
400,000,000.00 |
KOTAK MAHINDRA
BANK LIMITED |
7TH FLOOR,
AMBADEEP BUILDING, 14, K. G. MARG, NEW DELHI, DELHI - 400021, INDIA |
B68802214 |
|
4 |
10133157 |
23/01/2013 * |
750,000,000.00 |
HDFC BANK
LIMITED |
HDFC BANK HOUSE SENAPATIBAPAT
MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA |
B70243746 |
|
5 |
10127598 |
03/11/2008 |
492,000,000.00 |
3I INFOTECH
TRUSTEESHIP SERVICES LIMITED |
3RD TO 6TH FLOOR,
INTERNATIONAL INFOTECH PARK, TOWER NO.5, VASHI RAILWAY STATION COMPLEX,
VASHI, NAVI MUMBAI, MAHARASHTRA - 400703, INDIA |
A49787617 |
|
6 |
10127595 |
23/01/2013 * |
492,000,000.00 |
3I INFOTECH
TRUSTEESHIP SERVICES LIMITED |
3RD TO 6TH
FLOOR, INTERNATIONAL INFOTECH PARK, TOWER NO.5, VASHI RAILWAY STATION
COMPLEX, VASHI, N AVI MUMBAI, MAHARASHTRA - 400703, INDIA |
B71013460 |
|
7 |
10127596 |
23/01/2013 * |
980,000,000.00 |
ICICI BANK LTD. |
LANDMARKRACE COURSE
CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA |
B69632578 |
|
8 |
10080917 |
10/05/2012 * |
980,000,000.00 |
ICICI BANK
LIMITED |
LANDMARKRACE
COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA |
B40714255 |
|
9 |
10011604 |
23/01/2013 * |
500,000,000.00 |
AXIS BANK LTD. |
2ND FLOOR,
STATESMAN HOUSE, 148, BARAKHAMBA ROAD, NEW DELHI, DELHI - 110001, INDIA |
B69254910 |
|
10 |
80014472 |
23/01/2013 * |
654,000,000.00 |
STATE BANK OF
INDIA |
OVERSEAS BRANCH,
JAWAHAR VYAPAR BHAWAN, 1, TOLSTOY MARG, NEW DELHI, DELHI - 110001, INDIA |
B70372164 |
* Date of charge modification
FIXED ASSETS
·
Land (Freehold/
Leasehold)
·
Building (On Freehold
Land / On Freehold Land)
·
Plant and Equipment
·
Furniture and Fixtures
·
Vehicles
·
Office Equipments
·
Leasehold
Improvements
·
Roads
·
Computer Software
·
Technical Knowhow
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 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 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.61.86 |
|
|
1 |
Rs.103.06 |
|
Euro |
1 |
Rs.84.92 |
INFORMATION DETAILS
|
Information
Gathered by : |
HTL |
|
|
|
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
62 |
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.