MIRA INFORM REPORT
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Report No. : |
311044 |
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Report Date : |
05.03.2015 |
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) : |
31.03.2014 |
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Date of
Incorporation : |
03.04.1934 |
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Com. Reg. No.: |
11-002093 |
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Capital
Investment / Paid-up Capital : |
Rs.151.947 Million |
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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
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MIRA’s Rating : |
Ba (48) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track record. There seems a drastic dip in the profitability of the company during
2014. However, net worth of the company is satisfactory. General financial
position of the company is good. The ratings also takes into consideration the company’s established
position in the domestic AC roofing market. Trade relations are reported as fair. Business is active. Payments
terms are reported to be usually correct. The company can be considered normal for 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 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
India |
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 |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
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Rating |
Long Term Rating=A+ |
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Rating Explanation |
Adequate degree of safety. It carry low
credit risk. |
|
Date |
26.02.2014 |
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Rating Agency Name |
CRISIL |
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Rating |
Short Term Rating=A1 |
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Rating Explanation |
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
31-03-2014.
INFORMATION DENIED
Management Non Co-operative (91-2557-250462)
LOCATIONS
|
Registered Office/ Factory: |
Gat No. 152, Lakhmapur, Taluka Dindori, Nashik – 422202, Maharashtra,
India |
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Tel. No.: |
91-2557-250375/ 462 |
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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/ Corporate Office : |
Genesis, A-32 Mohan Co-operative Industrial Estate Mathura Road New
Delhi – 110044, India |
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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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Factories : |
Kymore Works Everest Nagar,
P.O. Kymore, District Katni – 438880 Madhya Pradesh, India Kolkata Works ‘Everest House’ 1,
Taratola Road, Garden Reach, Kolkata – 700024, West Bengal, India 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 31.03.2014
|
Name : |
Mr. Aditya Vikram Somani |
|
Designation : |
Chairman |
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Date of Birth |
04.11.1973 |
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Qualifications |
MBA, PGDM, M.Com. |
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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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Name : |
Mr. Sandeep Junnarkar |
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Designation : |
Director |
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Name : |
Mr. Madan Lal Narula |
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Designation : |
Director |
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Date of Birth |
25.10.1940 |
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Qualifications |
B.Sc. Engineering (Electrical) |
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Date of Appointment |
30.01.2008 |
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Name : |
Mr. Amitabh Das Mundhra |
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Designation : |
Director |
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Name : |
Mr. B. L. Taparia |
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Designation : |
Director |
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Date of Birth |
05.07.1950 |
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Qualifications |
B.Com, LL.B., F.C.S. |
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Date of Appointment |
10.5.2013 |
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Name : |
Ms. Bhavna G. Doshi |
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Designation : |
Director |
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Name : |
Mr. Manish Sanghi |
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Designation : |
Managing Director |
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Date of Birth |
04.02.1963 |
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Qualifications |
08.07.2002 |
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Date of Appointment |
B.E. (Mech.), PGDM (IIM-A) |
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Name : |
Mr. Y. Srinivasa Rao |
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Designation : |
Executive Director (Operations) |
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Qualifications |
B.Sc. Engg. (Mechanical) |
KEY EXECUTIVES
|
Name : |
Mr. Neeraj Kohli |
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Designation : |
Company Secretary |
SHAREHOLDING PATTERN
As on 31.12.2014
|
Category of
Shareholder |
No. of Shares |
Percentage
of Holding |
|
(A) Shareholding of Promoter and Promoter
Group |
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Bodies Corporate |
7520470 |
49.28 |
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|
7520470 |
49.28 |
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Total shareholding of Promoter and Promoter Group (A) |
7520470 |
49.28 |
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(B) Public Shareholding |
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|
1980975 |
12.98 |
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|
225 |
0.00 |
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|
200 |
0.00 |
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|
187 |
0.00 |
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|
1275 |
0.01 |
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|
1982862 |
12.99 |
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|
744322 |
4.88 |
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Individual shareholders holding nominal share capital up
to Rs.0.100 Million |
3332903 |
21.84 |
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Individual shareholders holding nominal share capital in excess
of Rs.0.100 Million |
1209657 |
7.93 |
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|
469791 |
3.08 |
|
|
132838 |
0.87 |
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|
336953 |
2.21 |
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|
5756673 |
37.72 |
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Total Public shareholding (B) |
7739535 |
50.72 |
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Total (A)+(B) |
15260005 |
100.00 |
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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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|
0 |
0.00 |
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Total (A)+(B)+(C) |
15260005 |
0.00 |
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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Brand Names : |
Not Divulged |
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Agencies Held : |
Not Divulged |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
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Selling : |
Not Divulged |
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Purchasing : |
Not Divulged |
PRODUCTION STATUS – NOT AVAILABLE
GENERAL INFORMATION
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Suppliers : |
Not Divulged |
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Customers : |
Not Divulged |
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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 : |
NOTES: LONG TERM
BORROWINGS External
Commercial Borrowing (ECB) from ICICI Bank Limited of Rs.60.100 Million
(previous year Rs.163.140 Million) is secured by a first pari-passu charge
over all the immoveable and moveable fixed assets other than the immoveable
fixed assets situated at Podanur plant and second pari-passu charge on all
current assets of the Company. The ECB is repayable in 12 half yearly
instalments of USD 1,000,000; the last instalment is due in July 2014. The
rate of interest is Libor+1.03% per annum. External
Commercial Borrowing (ECB) from DBS Bank Limited of Rs.536.640 Million
(previous year Rs.619.200 Million) is secured by first pari-passu charges on all
the immoveable and movable fixed assets other than the immoveable fixed
assets situated at Podanur and Kolkata and second pari passu charge on all
present and future current assets of the Company. The ECB is repayable in 15
quarterly instalments of USD 800,000; the last instalment is due in April
2017. The rate of interest is 10.40% per annum. Term Loan from
HDFC Bank Limited of Rs.179.550 Million (previous year Rs. Nil) to be secured
by exclusive charge over the immovable property situated at Noida. The loan
is repayable in 20 quarterly instalments of Rs.9.450 Million; the last
instalment is due in November 2018. The rate of interest is 12.00% per annum. SHORT TERM
BORROWINGS Loans from banks
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 Kolkata plant. |
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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 |
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Address : |
Gurgaon, Haryana, India |
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Associate
company : |
Everest Building Solutions Limited (upto 23 March, 2014) – Has not
commenced operations |
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Subsidiary
companies : |
·
Everest Building Products, Mauritius (w.e.f. 9
September, 2013) – Has not commenced commercial operations ·
Everestind FZE, United Arab Emirates (UAE)
(w.e.f. 18 December, 2013) –subsidiary of Everest Building Products – Has not
commenced operations |
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Enterprise
exercising significant influence : |
Falak Investment Private Limited |
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
17000000 |
Equity Shares |
Rs.10/- each |
Rs.170.000 Million |
|
|
|
|
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15194665 |
Equity Shares |
Rs. 10/- each |
Rs.151.947 Million |
|
|
|
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|
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 Million]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
151.947 |
151.873 |
151.127 |
|
(b) Reserves & Surplus |
2793.324 |
2745.852 |
2343.995 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share
Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1)+(2) |
2945.271 |
2897.725 |
2495.122 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
513.270 |
591.020 |
155.610 |
|
(b) Deferred tax liabilities (Net) |
283.175 |
245.656 |
238.959 |
|
(c)
Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(d)
long-term provisions |
60.788 |
75.758 |
75.829 |
|
Total
Non-current Liabilities (3) |
857.233 |
912.434 |
470.398 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
1655.548 |
952.012 |
551.056 |
|
(b)
Trade payables |
1228.610 |
1089.117 |
731.632 |
|
(c)
Other current liabilities |
1291.600 |
958.913 |
774.213 |
|
(d)
Short-term provisions |
296.996 |
202.428 |
187.130 |
|
Total
Current Liabilities (4) |
4472.754 |
3202.470 |
2244.031 |
|
|
|
|
|
|
TOTAL |
8275.258 |
7012.629 |
5209.551 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
2691.476 |
2065.026 |
2190.432 |
|
(ii)
Intangible Assets |
125.913 |
48.500 |
12.127 |
|
(iii)
Capital work-in-progress |
610.480 |
371.146 |
78.801 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
6.337 |
0.245 |
0.245 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan
and Advances |
745.053 |
432.937 |
332.648 |
|
(e)
Other Non-current assets |
2.905 |
1.422 |
20.957 |
|
Total
Non-Current Assets |
4182.164 |
2919.276 |
2635.210 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
2420.884 |
2541.660 |
1579.835 |
|
(c)
Trade receivables |
807.081 |
523.495 |
417.047 |
|
(d)
Cash and cash equivalents |
251.430 |
528.531 |
330.316 |
|
(e)
Short-term loans and advances |
608.216 |
487.428 |
241.763 |
|
(f)
Other current assets |
5.483 |
12.239 |
5.380 |
|
Total
Current Assets |
4093.094 |
4093.353 |
2574.341 |
|
|
|
|
|
|
TOTAL |
8275.258 |
7012.629 |
5209.551 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
10352.516 |
10141.329 |
8868.612 |
|
|
|
Other Income |
123.369 |
87.525 |
177.903 |
|
|
|
TOTAL (A) |
10475.885 |
10228.854 |
9046.515 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
5745.939 |
5902.861 |
4750.491 |
|
|
|
Purchases of stock-in-trade |
280.556 |
159.310 |
136.177 |
|
|
|
Changes in inventories
of finished goods, work-in-progress and stock-in-trade |
7.052 |
(443.792) |
11.839 |
|
|
|
Employee benefits expense |
969.649 |
920.970 |
797.472 |
|
|
|
Other expenses |
2950.780 |
2624.167 |
2365.026 |
|
|
|
TOTAL (B) |
9953.976 |
9163.516 |
8061.005 |
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
521.909 |
1065.338 |
985.510 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
125.690 |
55.799 |
44.375 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
396.219 |
1009.539 |
941.135 |
|
|
|
|
|
|
|
|
|
Less |
DEPRECIATION/
AMORTISATION (F) |
267.204 |
220.524 |
200.816 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAX
(E-F) (G) |
129.015 |
789.015 |
740.319 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
37.519 |
264.018 |
212.698 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
91.496 |
524.997 |
527.621 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1792.385 |
1453.151 |
1101.481 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
9.190 |
52.500 |
53.000 |
|
|
|
Dividend |
37.987 |
113.905 |
105.789 |
|
|
|
Tax on Dividend |
6.456 |
19.358 |
17.162 |
|
|
BALANCE CARRIED
TO THE B/S |
1830.248 |
1792.385 |
1453.151 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Goods Exported |
590.485 |
561.101 |
566.312 |
|
|
TOTAL EARNINGS |
590.485 |
561.101 |
566.312 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1883.405 |
2414.059 |
1657.332 |
|
|
|
Stores & Spares |
15.226 |
13.678 |
10.243 |
|
|
|
Capital Goods |
78.728 |
1.357 |
35.042 |
|
|
|
Others |
1.609 |
58.121 |
88.126 |
|
|
TOTAL IMPORTS |
1978.968 |
2487.215 |
1790.743 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
6.02 |
34.70 |
34.96 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
0.87 |
5.13 |
5.83 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.25 |
7.78 |
8.35 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.68 |
11.88 |
14.43 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.04 |
0.27 |
0.30 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.74 |
0.53 |
0.28 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.92 |
1.28 |
1.15 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
Rs.
In Million |
Rs.
In Million |
Rs.
In Million |
|
Share Capital |
151.127 |
151.873 |
151.947 |
|
Reserves & Surplus |
2343.995 |
2745.852 |
2793.324 |
|
Net
worth |
2495.122 |
2897.725 |
2945.271 |
|
|
|
|
|
|
long-term borrowings |
155.610 |
591.020 |
513.270 |
|
Short term borrowings |
551.056 |
952.012 |
1655.548 |
|
Total
borrowings |
706.666 |
1543.032 |
2168.818 |
|
Debt/Equity
ratio |
0.283 |
0.532 |
0.736 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
Rs.
In Million |
Rs.
In Million |
Rs.
In Million |
|
Sales |
8,868.612 |
10,141.329 |
10,352.516 |
|
|
|
14.351 |
2.082 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
Rs.
In Million |
Rs.
In Million |
Rs.
In Million |
|
Sales
|
8,868.612 |
10,141.329 |
10,352.516 |
|
Profit |
527.621 |
524.997 |
91.496 |
|
|
5.95% |
5.18% |
0.88% |
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 |
---------- |
|
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 |
Yes |
|
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 |
MANAGEMENT
DISCUSSION AND ANALYSIS
ECONOMIC
OVERVIEW
The global
economy is witnessing gradual and sustained revival. Aided by strengthened
global activity and world trade in the second half of the year, global GDP
recorded a 3% growth in 2013. With sustained strengthening in the US and core
Euro region, global economy is expected to sustain momentum and record a
stronger GDP growth of 3.6% in 2014. Emerging and developing economies are
expected to benefit from developed economies in form of increased export
opportunities.
Indian
economy passed through one of its toughest phases in the financial year 2013-14
(FY 14). High inflation, weak demand, depreciating currency, rising cost of
industrial input, tight liquidity with high cost of borrowing – all this took
the consumer and investment sentiments to a new low. At 4.7%, the country recorded its second
successive year of sub 5% GDP growth.
In
light of weak growth numbers, the government and regulators pushed ahead with
few reform measures and clearances of projects in the second half of FY14. With
the hope of a stable government post ensuing general election in May 2014
coupled with a stronger global economy, Indian economy is likely to post better
growth numbers in FY15.
INDUSTRY
OVERVIEW
HOUSING
SEGMENT
Planning
Commission’s Working Group on Rural Housing for XIIth Plan estimated the number
of rural houses to grow at a Compounded Annual Growth Rate (CAGR) of 2.09%
while rural households were projected to grow at 2.1%. It further estimated the
rural housing shortage to be at 43.67 million units for the plan period
2012-2017. Reflecting the economic well-being of rural population, Pucca houses
are estimated to grow at a much faster rate of 4% CAGR over 2.9% CAGR for the
semi Pucca houses.
Rural
infrastructure, including dwelling units, is a key social priority of the
government. This will help in sizeable asset creation in terms of rural
housing. With the benefit of economic growth now getting visible in the rural
areas, disposable income and aspiration quotient of rural India is on the rise.
The huge housing deficit in rural India, with a majority of Kaccha houses,
offers tremendous opportunity of sustained growth of new age construction
practices as well as building products. Looking ahead, with the ambitious 12th
Five-year plan in place along with a stable government of the country, the
income of the under-privileged section is expected to go up. This should
translate into an increased demand for roofing products such as Fibre cement
roofing sheets.
National
Housing Bank estimates the urban housing shortage to be at 18.78 million. Rapid
urbanization coupled with steady migration of people from rural to urban areas
will continue to expand growth of urban housing and the demand for rapid
construction methods to meet the demand.
INDUSTRIAL
SEGMENT
Growing
at a CAGR of 10% over the past five years, the per capita consumption of
structural steel and PEB in India has reached about 6.2 Kgs now. Driven by
large investments in industry and infrastructure, Steel Structures segment has
witnessed a higher growth as compared to the Indian steel industry as well as
the Indian construction industry. Demand for structural steel from building
segments in India is less than 5% as compared to 65-70% in USA and 35-40% in
UK.
Penetration
of PEB in large traditional segments like power, chemicals, cement etc. is
increasing. Also Small-scale industries, are recognizing the advantages of
using PEB over conventional concrete buildings to control cost and time
overruns.
The
Rs.560 billion Indian warehousing industry is growing at over 10% annually.
Modern ware housing accounts for only 15% of the market. With the arrival of
organized players, modern warehousing is estimated to grow at a faster rate of
20-25% over the next 5 years.
ROOFING
INDUSTRY
OVERVIEW
Between
the last two census surveys, the total rural housing stock has increased from
177.500 Million units in 2001 to 220.600 Million units in 2011. The total share
of pucca roofing and RCC has increased from 45.5% in 2001 to 61.2% in 2011 With
improvement in rural income (from farm and non-farm avenues), government thrust
on rural housing and improving disposable income; customers are migrating from
kutcha roofs to more durable and convenient pucca roofing solutions. Over the
years, the use of clay tiles has been declining due to the non-availability of
raw material and a rising preference of superior roofing material. Moreover,
the pucca fibre cement roofing is very economical and costs just one-third of
the cost of an RCC ceiling slab.
The
fibre cement roofing industry in India has a capacity of 58 lac MT per annum
and comprises of 6 national brands and 14 regional brands.
INDUSTRY
OVERVIEW
BOARDS
AND PANELS
The
Indian boards industry comprises of traditional products like plywood,
laminates, and particle boards and new age modern building products like fibre
cement boards and gypsym. The traditional market size is estimated at
Rs.200000.000 Million and the new age modern building products market size is
estimated to be Rs.18000.000 Million. The boards industry is highly fragmented
and is currently dominated by plywood, laminate and particle boards. The
inability of wood based products to meet diverse needs of customers such as
resistance from fire, moisture, dampness and termites has increased the demand
for modern building materials like Fibre Cement Boards and Gypsum Boards which
address specific needs in construction.
FINANCIAL
HIGHLIGHTS
·
The building products division’s
revenue declined by 1.3% to Rs.7589.000 Million in 2013-14 despite a
realization growth of 3.2%. This was on account of sluggish demand due to high
inflation and cost of construction throughout the country.
·
The operating profit of the division
decreased by 59.0% from Rs.876.000 Million in previous year to Rs.359.000
Million during the year owing to increase in raw material costs, particularly
imported fibre, employee cost and freight cost.
OUTLOOK
With
expected revival in economic activity, housing construction activities should
also gain momentum. On the back of increasing rural income, rural housing
growth is expected to accelerate over coming quarters.
With
the right building solutions and products, deeper market penetration and strong
customer equity, Everest Industries is positioned to benefit from the growing
demand.
STEEL BUILDING SEGMENT
INDUSTRY
OVERVIEW
Steel
buildings are fast emerging as an effective alternate to traditional brick and
mortar ones in India. Offering advantages like speed and cost of construction,
robustness and energy efficiency, it is the preferred method for industrial
construction. Popular as Pre-Engineered Buildings (PEBs), it has widespread
presence across North America and European countries. Compared to conventional
construction, PEBs save construction time by 30-50%, are 100% customizable,
highly flexible, durable and weather proof.
The
Indian PEB market size is estimated to grow at a CAGR of 26.6%, from
Rs.52970.000 Million in 2012 to Rs.136120.000 Million by 2016 The PEB industry,
in early years of its introduction in India, recorded rapid growth. However,
recent economic slowdown has impacted its growth momentum momentarily.
OUTLOOK
Central
government’s fast tracking of approvals on infrastructure and industrial
projects during the second half of FY 14 are likely to boost the PEB industry.
Construction activity, including those of industrial and commercial buildings,
is likely to gain momentum over coming quarters. With a clear shift towards
PEBs from conventional structures, the PEB segment would grow faster. With
newly added capacities at a strategic location and increasing buyer interest in
this building technique, the division is poised for rapid growth.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31.12.2014
Rs. In Million
|
Particulars |
Quarter Ended |
Nine Months Ended |
|
|
|
31.12.2014 |
30.09.2014 |
31.12.2014 |
|
|
(UNAUDITED) |
||
|
Net Sales/ Income from Operations |
2743.200 |
2427.700 |
8979.200 |
|
Other Operating Income |
29.800 |
36.900 |
141.200 |
|
Total income
from operation |
2773.000 |
2464.600 |
9120.400 |
|
Expenditure |
|
|
|
|
a) Cost of Materials Consumed |
1685.700 |
1506.800 |
5201.500 |
|
b) Purchase of Stock in trade |
24.100 |
59.800 |
133.400 |
|
c) Change in inventories of finished goods, work in progress & stock in trade |
(79.100) |
(163.100) |
7.100 |
|
d) Employee benefits expense |
264.800 |
278.200 |
822.100 |
|
e) Depreciation and amortization expense |
61.000 |
62.800 |
186.800 |
|
f) Freight |
211.000 |
138.300 |
698.100 |
|
g) Other expenses |
563.700 |
559.300 |
1690.200 |
|
Total |
2731.200 |
2442.100 |
8739.200 |
|
Profit from
operations before Other Income, Interest and Exceptional Items |
41.800 |
22.500 |
381.200 |
|
Other Income |
13.700 |
56.200 |
73.400 |
|
Profit before Interest |
55.500 |
78.700 |
454.600 |
|
Interest |
44.800 |
34.200 |
114.400 |
|
Profit before tax |
10.700 |
44.500 |
340.200 |
|
Tax expense |
(0.700) |
10.800 |
98.800 |
|
Net Profit / (Loss) after tax |
11.400 |
33.700 |
241.400 |
|
Paid-up equity share capital (Face value of Rs.10/- each) |
152.600 |
152.300 |
152.600 |
|
Reserves excluding Revaluation Reserves as per balance sheet of
previous accounting year |
|
|
|
|
Earnings per
share |
0.75 |
2.21 |
15.86 |
|
|
|||
|
Public Shareholding |
|
|
|
|
- No. of shares |
7739535 |
7705325 |
7739535 |
|
- Percentage of shareholding |
50.72 |
50.61 |
50.72 |
|
Promoters and promoter group shareholding |
|
|
|
|
Pledged/ Encumbered |
|
|
|
|
- No. of shares |
-- |
-- |
-- |
|
- Percentage of shares (as a % of the total shareholding of promoter & promoter group) |
-- |
-- |
-- |
|
- Percentage of shares (as a % of the total share capital of the company) |
-- |
-- |
-- |
|
Non-encumbered |
|
|
|
|
- No. of shares |
7520470 |
7520470 |
7520470 |
|
- Percentage of shares (as a % of the total shareholding of promoter & promoter group) |
100.00 |
100.00 |
100.00 |
|
- Percentage of shares (as a % of the total share capital of the company) |
49.28 |
49.39 |
49.28 |
|
|
|||
|
INVESTOR
COMPLAINTS |
|
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
|
Received during the quarter |
Nil |
|
|
|
Disposed during the quarter |
Nil |
|
|
|
Remaining unresolved at the end of the quarter |
Nil |
|
|
SEGMENT WISE REVENUE, RESULTS AND
CAPITAL EMPLOYED
Rs. In Million
|
Particulars |
Quarter Ended |
Nine Months Ended |
|
|
|
31.12.2014 |
30.09.2014 |
31.12.2014 |
|
1.
Segment Revenue |
(UNAUDITED) |
||
|
a. Building Products |
1884.300 |
1744.300 |
6544.000 |
|
b. Steel Buildings |
888.700 |
720.300 |
2576.400 |
|
Total |
2773.000 |
2464.600 |
9120.400 |
|
|
|
|
|
|
2.
Segment Result |
|
|
|
|
a. Building Products |
83.100 |
147.500 |
617.200 |
|
b. Steel Buildings |
5.300 |
(59.800) |
(48.000) |
|
Total |
88.400 |
87.700 |
569.200 |
|
Less
: Finance Costs |
44.800 |
34.200 |
114.400 |
|
Less:
Other Unallocable expenditure (net of
unallocable income) |
32.900 |
9.000 |
114.600 |
|
Profit
before Tax |
10.700 |
44.500 |
340.200 |
|
Capital Employed |
|
|
|
|
(Segment Assets – Segment Liabilities) |
|
|
|
|
a. Building Products |
3683.100 |
3476.600 |
3683.100 |
|
b. Steel Buildings |
1384.400 |
1542.900 |
1384.400 |
|
c. Unallocated |
(1884.100) |
(1854.100) |
(1884.100) |
|
|
|
|
|
|
TOTAL |
3183.400 |
3165.400 |
3183.400 |
NOTES:
1. The
above financial results were reviewed by the Audit Committee and approved by
the Board of Directors at their respective meetings held on January 21, 2015. The
Statutory Auditors have carried out a limited review of the unaudited financial
results of the Company for the quarter and period ended December 31, 2014.
2. Managerial
remuneration forming part of employee benefits expenses for the year ended 31 March,
2014 exceeded the limits prescribed under Section 198 read with Section 309 and
Schedule XIII to the Companies Act, 1956 by Rs.28.200 Million. The Company has
filed applications for requisite approval but these were not granted by the
Central Government. The Company has reversed / adjusted the managerial
remuneration amounting to Rs.28.200 Million during the current quarter/nine
months ended December 31, 2014. The Company has subsequently filed applications
with the Central Government for waiver of managerial remuneration amounting to
Rs.19.800 Million which has already been paid to directors.
3. Consequent
to the enactment of the Companies Act, 2013 ( the Act) and its applicability
for accounting periods commencing after 1 April, 2014, the Company has reassessed
the useful life of its fixed assets and has computed depreciation with
reference to the useful life of assets recommended in Schedule II to the Act.
Consequently depreciation for the quarter and held year ended December 31, 2014
is loser by Rs.13.200 Million and Rs.25.800 Million respectively and
depreciation related to the assets whose life had expired as on 1 April, 2014
is Rs.14.200 Million (net of deferred tax credit of Rs.7.300 Million) which has
been adjusted with the general reserves.
4. The
previous period figures have been regrouped wherever necessary.
INDEX OF CHARGE:
|
Sr. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10415557 |
30/04/2014 * |
619,200,000.00 |
Dbs Bank Ltd. |
Capital Point,
Baba Kharak Singh Marg, Connaught Place,
New Delhii - 110001, India |
C03899754 |
|
2 |
10369338 |
30/04/2014 * |
100,000,000.00 |
DBS Bank Ltd. |
Capital Point,
Baba Kharak Singh Marg,, Connaught Place,
New Delhii - 110001, India |
C03861275 |
|
3 |
10303259 |
30/04/2014 * |
420,000,000.00 |
Kotak Mahindra
Bank Limited |
7th Floor,
Ambadeep Building, 14,, K G Marg,, New Delhi
- 110001, India |
C03785508 |
|
4 |
10133157 |
30/04/2014 * |
750,000,000.00 |
Hdfc Bank
Limited |
Hdfc Bank
Housesenapati Bapat Marg, Lower Parel W, Mumbai, Maharashtra - 400013, India |
C03876174 |
|
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 |
30/04/2014 * |
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 |
C03918497 |
|
7 |
10127596 |
30/04/2014 * |
980,000,000.00 |
ICICI Bank Ltd. |
Landmark, Race Course
Circle,, Alkapuri,, Baroda, |
C03919651 |
|
8 |
10080917 |
10/05/2012 * |
980,000,000.00 |
ICICI Bank
Limited |
Landmark race
Cource Circle, Alkapuri, Baroda, Guj |
B40714255 |
|
9 |
10011604 |
30/04/2014 * |
250,000,000.00 |
Axis Bank
Limited |
2nd Floor,
Statesman House, 148, Barakhamba Road, |
C04675906 |
|
10 |
80014472 |
28/05/2014 * |
550,000,000.00 |
State Bank of
India |
Overseas Branch,
Jawahar Vyapar Bhawan,, 1, Tolstoy Marg, New Delhi, Delhi - 110001, India |
C04671111 |
*Date of modification Charges
FIXED ASSETS:
·
Land (Freehold /
Leasehold)
·
Building (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, India Prisons Service,
Interpol, etc.
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.61.85 |
|
UK Pound |
1 |
Rs.94.96 |
|
Euro |
1 |
Rs.69.10 |
INFORMATION DETAILS
|
Information
Gathered by : |
PDT |
|
|
|
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
NKT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILITY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
NO |
|
DEFAULTER
|
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
48 |
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.