Interarch Buildings Products pvt. ltd

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1. [1] SUMMER INTERNSHIP PROJECT REPORT ON INTERARCH BUILDING PRODUCTS PVT LTD Submitted in partial fulfillment of requirement of Bachelor of Business Administration (B.B.A) General BBA Vth SEMESTER (B) (E) BATCH 2012-2015 Submitted to: Submitted by: Amit Kumar Mishra Name of guide: Ms.Anshika Goel Name of Student: Amit Kumar Mishra Designation: Asst. Professor Enrollment no.:09824501712 JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL 2. [2] iNNOVATE iNITIATE iNTEGRATE 3. [3] ACKNOWLEDGEMENT A lot of effort has gone into this training report. My thanks are due to many people with whom I have been closely associated. This report bears the imprint of many people. Right from the experienced staff of Interarch Building Products Pvt Ltd., to the staff of Jagannath International Management School, New Delhi without whose support and guidance I would have not got the unique opportunity to successfully complete my internship in this esteemed organization. I take this opportunity to express my deep gratitude to all the employees of Interarch Building Products Pvt Ltd., Noida. I am gratified to Mr. Mahesh Verma (VP, Operations) for their earnest coordination owing to which, I had the leg-up of undertaking the internship at the prominent organization, Interarch Building Pvt ltd. Also I am indebted for the rich guidance, knowledge and suggestions provided by my guide, Mr. Rakeshwar Nath Mishra (AVP, Accounts) who took sincere efforts and illustrated the financial concepts of this organization, with his vast knowledge in the field, which helped me in carrying out my internship. Last but not least, I also thank all those people whom I met in the company during my internship and helped me to accomplish my project in the most efficient and effective manner. Date: Place: New Delhi Submitted by: Amit Kumar Mishra 4. [4] CONTENTS Description Page No. Acknowledgement (i) Contents with page no. (ii) List of figures (iii) Executive Summary 6 Certificate of Completion 10 Introduction to topic- Financial Analysis of Interarch Building Products 11 History 14 Board of Directors 20 Capabilities 23 Design & Engineering 25 Quality Control & Safety 26 International Standards 27 Manufacturing Facilities 28 Building Divisions 30 Project Management Advantages Challenges Government Role Principal Participants in PEB Integrated Business Process Model 39 45 47 48 49 50 Research Methodology 52 Financial Analysis 56 Findings & Inferences 48 Recommendations and Conclusion 89 Limitations 96 Bibliography 98 5. [5] List of Figures and Charts S No. Description Page no. (1) Total Expenditure during FY 2012-2013 57 (2) Liquidity Ratio Current/ Quick Ratio Altman Z score Du Pont Analysis Accounts Receivable to Working Capital Inventory to Working Capital Long Term Liabilities to Working Capital Sales to Working Capital 59 60 61 62 63 64 65 (3) Activity / Efficiency Ratio Accounts receivable Turnover Days Sales in Receivable Operating Cycle Days Sales to Assets Depreciation Expenses to Assets Accumulated Depreciation to Assets Fixed Assets to Equity Free reserves per Share Inventory Turnover Average Raw Materials Holdings Operating Cash Flow to Sales 67 68 69 70 71 72 73 74 75 76 77 78 (4) Profitability Ratio Gross Profit Operating Profit Margin Rate of Return on Assets Operating Profit per share Return on Capital Employed Return on Equity 79 80 81 82 83 84 (5) Coverage/ Financial leverage ratio Debt to Assets Debt Equity ratio Long Term Debt Equity ratio Debt Coverage Ratio 85 86 87 88 6. [6] EXECUTIVE SUMMARY The project work is pursued as a part of BBA (General) Curriculum at Jagannath International Management School, Delhi. It is undertaken as a traineeship at Interarch Building Products Pvt Ltd. In structural engineering, a pre-engineered building (PEB) is designed by a PEB supplier or PEB manufacturer, to be fabricated using best suited inventory of raw materials available from all sources and manufacturing methods that can efficiently satisfy a wide range of structural and aesthetic design requirements. Within some geographic industry sectors these building are also called Pre- Engineered Metal Building (PEMB) or, as is becoming increasingly common due to the reduced amount of pre-engineering involved in custom computer-aided designs, simply Engineered Metal Building (EMB). Historically, the primary framing structure of a pre-engineered building is an assembly of I-shaped members, often referred as I-beams. In pre-engineered building, the I beams used are usually formed by welding together steel plates to form the I section. The I beams are then field-assembled (e.g. bolted connections) to form the entire frame of the pre-engineered building. Some manufacturers taper the framing members (varying in web depth) according to the local loading effects. Larger plate dimensions are used in areas of higher load effects. Other forms of primary framing can include trusses, mill sections rather than three-plate welded, castellated beams, etc. The choice of economic form can vary depending on factors such as local capabilities (e.g. manufacturing, transportation, construction) and variations in material vs. labour costs. Typically, primary frames are 2D type frames (i.e. may be analysed using two- dimensional techniques). Advances in computer-aided design technology, materials and manufacturing capabilities have assisted a growth in alternate forms of pre-engineered building such as the tension fabric building and more 7. [7] sophisticated analysis (e.g. three-dimensional) as is required by some building codes. Cold formed Z- and C-shaped members may be used as secondary structural elements to fasten and support the external cladding. Roll-formed profiled steel sheet, wood, tensioned fabric, precast concrete, masonry block, glass curtain wall or other materials may be used for the external cladding of the building. In order to accurately design a pre-engineered building, engineers consider the clear span between bearing points, bay spacing, roof slope, live loads, dead loads, collateral loads, wind uplift, deflection criteria, internal crane system and maximum practical size and weight of fabricated members. Historically, pre- engineered building manufacturers have developed pre-calculated tables for different structural elements in order to allow designers to select the most efficient I beams size for their projects. However, the table selection procedures are becoming rare with the evolution in computer-aided custom designs. While pre-engineered building can be adapted to suit a wide variety of structural applications, the greatest economy will be realized when utilising standard details. An efficiently designed pre-engineered building can be lighter than the conventional steel building by up to 30%. Lighter weight equates to less steel and a potential price savings in structural framework. Interarch Building Products Pvt Ltd commenced its operations in 1984, and pioneered the high-end metal interior products market in India. Interarch has been the first mover in India, right from metal ceilings, to blinds, metal roofing to pre-engineered building. Today, 30 years later, Interarch is a leading turnkey Pre-Engineered Steel Construction Solution provider in India with integrated facilities for design, manufacture, logistics, and supply and project execution capabilities for pre- engineered steel building. Interarch holds a significant part of market share in India for metal building systems. Interarch works in close association with industry leaders in project development and construction, providing support to critical industrial, commercial and infrastructure projects. 8. [8] Interarch is also the parent company of Interarch Infrastructure, a new division of the company that caters specifically to heavy steel structure and large infrastructure projects in the country. Interarch has been instrumental in being a knowledge leader and industry knowledge spokesperson when it comes to steel building manufacturing and construction and runs various mindshare communities for the influencers in the industry. Interarch Building Innovators and Interarch Certified Builders bring together two critical kind of influencers and partners of the industry, providing them a community to share ideas. While Building Innovators brings together the best architects and engineers, as well as end users to share their expertise, the Certified Builder program started by Interarch helps in promoting better execution, safety and quality in construction. Interarch is also a certified green building partner and all our products comply with LEED and IGBC norms. Look for the I AM Green logo on our building Today, Interarch works with industry majors to incorporate its products and services for design and construction of new facilities. Interarch works in close association with industry leaders in project development and construction, providing support to critical industrial, commercial and infrastructure projects. With its rich heritage of over twenty five years, Interarch Building Products Pvt. Ltd. pioneered high-end metal building products in India and is proud to be the countrys leading turnkey pre-engineered metal building Company. With its extensive integrated design, manufacture, supply and execution capabilities, Interarch holds a significant part of market share in India for metal building systems. Interarch Building Products started off as a company which completely changed the face of Indian metal interior products market with its premium quality metal suspended ceilings. Interarch, thereafter, immediately caught hold of a substantial market share and expanded its product range with the introduction of window coverings under the same brand name. Pioneering engineered TRACDEK Metal Roofing and Cladding products and pre-engineered steel construction solutions, Interarch has set new standards of quality, trust and 9. [9] workmanship with many large scale and one-of-a-kind projects to its credit. Achievements With over 25 years of experience, Interarch is the only truly Indian company in the industry providing integrated design, engineering, manufacturing and execution of metal building solutions to clients. * More than 5000 projects executed in India. * Over 3,000,000 m2 of roofing & cladding installed per year. * Largest clear span building executed in India with more than 80 m2 of column free space. * Largest multi-storey pre-engineered building projects executed for Reliance Corporate Park, Mumbai , in less than 6 months. * Largest single contract executed for pre-engineered steel construction with single order values exceeding USD 25 million. * Leading preferred supplier of construction solutions to all the top automotive industry players in India, including Tata Motors, GMI, Skoda Auto, Bajaj, Hyundai Motors, Fiat and Honda. Completed more than 250,000 m2 of building for Tata Motors Ace Trucks Greenfield plant for in Rudrapur, India in less than 8 months. * Captured more than 250,000 m2 of building for Tata Motors Nano Car Project in Singur, Marco Polo Bus Project in Dharwad and Nagpur, India. * First ever Automotive Paint Shop constructed using pre-engineered system. * Single largest building for Fiat, with 80,000 m2 under one roof. * Over 900 Petrol Pump Outlet Canopies executed all over India for Reliance Petroleum. * Largest pre-engineered building structural system for Delhi International Airport IGI Terminal 3 with 8000 MT of Structural Steel System for the terminal building as well as over 180,000 m2 of 7-Layer Roofing systems finished in aluminium. 10. [10] CERTIFICATE OF COMPLETION I hereby certify that this is my original work and it has never been submitted elsewhere. Project Guide: Ms. Anshika Goel (By Amit Kumar Mishra) Faculty (JIMS , New Delhi) 11. [11] CHAPTER I INTRODUCTION TO THE TOPIC India is growing rapidly. Surging with youthful zest and passion, India shines on the global map. With stories of enterprise, achievement and success, Interarch is committed to building India on a foundation of Strength, and that too at unprecedented Speed .Providing security and Safety to over a billion Indians. Interarch is one of Indias fastest growing building solutions companies, and is proud to be a part of the great Indian growth story in this landscape of progress and style. Architects, Interior Designers and Builders in India and trust Interarchs sustainable and ready-to-build products for industrial, commercial and residential applications. Indias growth is expected to improve in 2014. Indias growth is expected to recover from 4.4 per cent in 2013 to 5.4 per cent in 2014, supported by slightly stronger global growth, improving export competitiveness and implementation of recently approved investment projects. A pick-up in exports in recent months and measures to curb gold imports have contributed to lowering the current account deficit. Policy measures to bolster capital flows have further helped reduce external vulnerabilities .Overall growth is expected to firm up on policies supporting investment and a confidence boost from recent policy actions, but will remain below trend .Consumer price inflation is expected to remain an important challenge, but should continue to move onto a downward trajectory. The outlook also estimated that Indias growth rate would increase to 6.4 per cent in 2015. In 2012, Indias growth rate stood at 4.7 percent. For India, real GDP growth is projected to strengthen to 5.4 per cent in 2014 and 6.4 per cent in 2015, assuming that Government efforts to revive investment growth succeed and export growth strengthens after the recent rupee depreciation. 12. [12] It was expected to grow at 7.6% in 2013 led by an increase in consumption in the large middle class, a growing labor force and strong rural demand. Rural demand and the Agriculture sector play an important role in the growth of our economy. 70% of our population lives in rural India and consumes more than 40% of consumer products and durables. Agricultural sector continued to perform well and contributed 13.9% to Indias GDP. Food grain production at 250 million MT this year was the highest ever and disposable income in rural areas increased. Government initiatives for inclusive growth an employment guarantee gave an impetus to greater productivity, higher disposable income and spending in rural India .The Indian industrial sector faced high input costs due to inflation and high interest rates. Depreciation of the Indian Rupee against the US Dollar significantly increased cost of imports and freight due to higher fuel prices. Even in such global uncertainty and volatility, Indias strong fundamentals made her one of the fastest growing economies in the world. 13. [13] Economic indicators show that growth in the PEB industry is expected to outpace Indias GDP growth. The Indian PEB industry has shown a healthy growth rate of around 10% (Y-o- Y). Currently the India industry has greater manufacturing capability than demand. Therefore, a lot of PEB companies have decided to add heavy structures and multi-storey building to their portfolio. Infrastructure and construction segments are fundamental to economic development and normally grow at twice the rate of GDP. The Indian consumer prefers better quality building materials and needs faster construction methods due to fast economic growth, greater disposable income and high exposure to media. In the construction industry there is rapid migration from conventional techniques and products. Modern products of superior quality and technology are being adopted. They enable faster speed, greater strength and higher safety. Interarch caters to the growing demand of the building and construction industry with a strong portfolio of products for industrial and commercial applications. Interarchs pre-engineered and smart steel building provide superior design, faster speed and a high degree of certainty for project completion. They are replacing conventional construction methods for warehouses and factory sheds. High performance products like access floors, polycarbonate roofing and fixing accessories are being adopted by builders and contractors. This company offers a range of ready-to-use high quality products and superior services for the construction industry. Interarch is proud to be an integral part of the strong Indian growth story. 14. [14] HISTORY Interarch Building Products Pvt Ltd. is a Private Company incorporated On 30 November 1983. It is classified as Indian Non-Government Company and is registered at Registrar of Companies, Delhi. Its authorized share capital is Rs.100, 000,000 and its paid-up capital is Rs. 75,003,000. Interarch Building Products started off as a company which completely changed the face of Indian metal interior products market with its premium quality metal suspended ceilings. Interarch, thereafter, immediately caught hold of a substantial market share and expanded its product range with the introduction of window coverings under the same brand name. The concept of PEB is evolving from box like steel structures to aesthetically pleasing ones. PEB offers distinct advantages such as shorter project completion time and overall cost efficiency as compared to conventional building .Owners today understand the value of early occupancy and hence initial acceptance for PEBs over conventional building is growing constantly. This shift is higher in industrial applications, followed by infrastructure and commercial structures. Over the years there has been a visible evolution in the PEB industry. The acceptance of pre-engineered building systems has been high in the industrial segment especially for manufacturing applications in automobile, equipment, consumer goods etc. While manufacturing is certainly a primary demand driver it is closely followed by infrastructure and the commercial segment. 15. [15] Warehousing is going to create fresh business opportunities due to shortage of storage facilities required for organized retail and agricultural applications where equal amount of importance is being given to stocking goods without causing any damage. PEB designs are unique to match the operational requirements of each customer which results in optimum usage of space. This has significant advantage for several applications. The potential of the warehousing market has not been fully explored as far as PEB solutions are concerned. Currently, investments are being made in making industrial and commercial building. Once the focus shifts to Indian infrastructure, PEB usage in those applications will go up as well. Indias PEB industry is fairly similar to that of other countries. We are facing challenges in conditions at construction sites. We are setting up higher safety standards in projects undertaken by us. As a policy, we do address safety at the same level across the globe, despite the country we are in. Quality control is more variable in India. Cost vs. quality is not only an Indian phenomena but a global subject. Everyone demands for best quality at the lowest price. In this scenario, Interarchs offers the best solution that matches our standards at the right price. Superiority in products provides a competitive edge and provide better quality products and services in the market. In the industry sector Quality cannot be ignored for the sake of price. PEB market are committed to grow engineered steel building business in India by offering innovative engineered solutions to meet customer needs. Short term plan is to build on construction capability, which is an area of constant challenge and evolution as we need to maintain and advance the safety standards. The medium- and long-term plans are actually very similar in terms of setting up for controlled growth within the market, to expand capabilities, build on brand name and be able to expand foot print within India, and outside as well. Interarch manufactures metal building systems, and has worked on Tata Motors Ltd.s Singur factory, e-choupals and a Pune cigarette plant for diversified conglomerate ITC Ltd, and petrol pumps for Reliance Industries Ltd. The company currently has sites in Rudrapur, Chennai and Greater Noida. It had 16. [16] expected its turnoveran estimated Rs.500 crore, to grow to Rs.1100 crore over three years because of the expansion. This investment is Interarchs first step towards listing on the bourses. With a slew of project being announced in Gujarat, pre-engineered building player Interarch Building Products Pvt. Ltd. is eyeing expansion of business in the state. Having bagged several new projects including the likes of Oswal Industries Limited and ABB Limited in Ahmedabad and Vadodara, the company is looking at project value worth Rs.10 crore in Gujarat. So far Interarch have already executed 63 projects in Gujarat including 16 in Central Gujarat, 12 in Kutch, 6 in Saurashtra and 29 in South Gujarat since 2002. However, with new projects being bagged by Interarch in Gujarat, the company is looking at a growth of 15 per cent in terms of turnover in the state. In Gujarat, Interarch has been providing pre-engineered building services on a turn-key basis to companies in sectors ranging from automotive, industrial, logistics and warehousing, and on-road retailing to port infrastructure, power plants and advanced steel construction solutions for major infrastructure projects. "In terms of percentage, Gujarat is currently contributing around 4-8 per cent of the overall business. Now that we have a regional office here in Ahmedabad and taking into account the current growth prospects in Gujarat, we would be targeting around 10-12 per cent of revenues from this state in the current fiscal year. Moreover, we expect it to get increased to about consistent 15 per cent over the next 3-5 years." Among clients in Gujarat, Interarch has been serving the likes of General Motors, Caparo Maruti Ltd, Amvian Automotive Pvt. Ltd, Shayburg Valves Pvt Limited and Esteem Auto Pvt Ltd. in the auto sector. The company has also worked extensively in manufacturing sector for companies like Garima Global Pvt Ltd, Everest Kanto Cylinders Ltd., Asian Granito India Limited, SKF Technologies India Ltd, Poggen-Amp Nagarsheth Powertronics Ltd, Time Technoplast Ltd, HNG Float Glass Ltd, and Apple International in Gujarat. "When it comes to power, Interarch has worked with Voith Siemens Ltd, Welspun Corp Limited, and 17. [17] Gujarat Industries Power Company Ltd et al. Even in textile sector also, it has worked for Stovec Industries Ltd., The company's turnover for the financial year 2012-13, based on current order book, is about Rs 500 crore, growing at 10-15 per cent annually. 18. [18] Corporate Identification Number U45201DL1983PTC017029 Name INTERARCH BUILDING PRODUCTS PRIVATE LIMITED RoC RoC-Delhi Registration Number 17029 Company Category Company limited by shares Company Sub Category Indian Non-Government Company Class of Company Private Company Authorized Capital (in Rs.) 100,000,000 Paid up capital (in Rs.) 75,003,000 Number of Members(Applicable only in case of company without Share Capital) 0 Date of Incorporation 30 November 1983 Address 1 Farm No.-8, Khasara No. 56/23/2 Address 2 Dera Mandi Road, Mandi Village, Tehsil Mehrauli City New Delhi State Delhi Country INDIA Pin 110047 Whether listed or not Unlisted Date of Last Annual General Meeting 30 September 2013 Date of Balance sheet 31 March 2013 Company Status (for eFiling) Active 19. [19] 20. [20] BOARD OF DIRECTORS Mr. Arvind Nanda is the CEO and Founder Director of Interarch, a 500-crore, ISO 9001:1994 Company. Mr. Arvind has built Interarch, along with his partner from a 2-employee company to a company with over 1400 people; spread across India with manufacturing facilities in Noida, Uttarakhand and Chennai. He exercises strong management skills and has expertise in systems and finance issues. He has been successfully practicing effective employee management abilities for the past 30 years. Arvind is a product of Modern School, New Delhi and he graduated from Shri Ram College of Commerce. He went on to do his Chartered Accountancy from UK and has worked in UK and India before starting Interarch in 1984. 21. [21] Mr.Gautam Suri is the Promoter and Founder Director of Interarch Building Products Private Ltd, a 500-crore, ISO 9001:1994 Company, with over 1400 permanent employees. Interarch was launched by him and Mr. Arvind in 1984 and today the company has emerged as a pioneering pre-engineered metal building systems manufacturer facilities in Greater Noida (UP), Pantnagar and Kicha (Uttrakhand) and Chennai. With his professional engineering background, Mr. Gautam has led Interarch to become a leading service and solution provider in steel construction. The company has grown to become the largest metal building products manufacturer in the country. The companies clients list includes Tata Motors, Reliance Industries, General Motors, Bajaj, Hyundai, Fiat and Honda. Apart from spearheading operations at Interarch, Gautam has also been a consulting engineer for the last 35 years and has designed acoustics facilities for over 1200 projects including several prestigious building including Vigyan Bhawan, India Habitat Centre, Delhi Vidhan Sabha, Delhi Airport (DIAL), Mumbai Airport (MIAL), PVR and DT Multiplex to name a few. He is a member of various international and national industry bodies including Acoustical Society of America, Acoustical Society of India, and various Committees of the Bureau of Indian Standards. Mr. Gautam is a Mechanical Engineer from the Indian Institute of Technology, Delhi (1974 batch) and is today, one of the acclaimed acoustic consultants in India. 22. [22] Mr. Ishaan Suri heads the corporate marketing and business process functions at Interarch. He has done his Bachelors in Business and Economics from the London School of Economics, UK, and has also studied at the University of Rochester, USA. A member to the board of Directors of Interarch, Ishaan looks after the core marketing front end for Interarch as well as business analytics, marketing execution and corporate and marketing communications at the company. He also has experience in technical sales and solution providing of pre- engineered metal building systems, customer relationship management for sales as well as large scale project management. He directly managed projects such as Interarch's work at IGI DIAL Terminal and also been a part client management of other large Interarch projects like Reliance DACC Commercial Complex, as well as many industrial projects such as Saint Gobain India Gypsum and other manufacturing facilities. Ishaan also manages the departmental Business Processes backend and their functions and day to day operations relating to Interarchs' ERP, CRM and SAP ECC-R3 systems ensuring then company operations run with a smooth and efficient function throughout our 3 manufacturing facilities, 2 engineering centres and over 13 office locations. 23. [23] Capabilities Interarch, with its strong presence, is India's most preferred engineering company when it comes to the turnkey pre-engineered steel construction solutions. This is due to several success factors including Interarch's superior Design Centre, state-of-art manufacturing facilities, large team of trained and dedicated workforce, secure delivery of material and project completion within stipulated cost and time boundaries. Interarch provides complete solution for structural systems to suit almost any kind of steel construction. Interarch offers the assurance of being a reputed home-grown Indian company with an excellent track record, strong financial background and a nationwide network of distributors and builders assuring local professional support. Interarch is committed to providing Unmatched Strength and Simplicity With custom designed steel building that offer structural systems made to suit your requirements, speed of construction and cost efficiency. An average size of a pre-engineered building project is approximately 5000 m2 and can be easily completed within 100 days from the date of finalization of drawings. A pre-engineered building boasts of lower costs and can be over 20% more economical than any other conventional structure. Quality Fabrication and Project Execution Interarch pre-engineered building are manufactured at world-class manufacturing units, shipped to your site and are assembled using nuts and bolts. High Quality Design and Detailing Solutions Each building is designed keeping in mind quality and expert detailing for every application. Building are analysed using custom-developed tools, complete 24. [24] fabrication drawings and shop drawings generated for each building. Interarch design is the knowledge and engineering back-end for the manufacturing facilities, providing optimization in design to cater to the extensive manufacturing and automated machinery, keeping in mind the time and cost targets. Project professionals and manufacturer-designed building The project architect, sometimes called the Architect of Record, is typically responsible for aspects such as aesthetic, dimensional, occupant comfort and fire safety. When a pre-engineered building is selected for a project, the architect accepts conditions inherent in the manufacturer's product offerings for aspects such as materials, colours, structural form, dimensional modularity, etc. Despite the existence of the manufacturer's standard assembly details, the architect remains responsible to ensure that the manufacturer's product and assembly is consistent with the building code requirements (e.g. continuity of air/vapour retarders, insulation, rain screen; size and location of exits; fire rated assemblies) and occupant/owner expectations. Many jurisdictions recognize the distinction between the project engineer, sometimes called the Engineer of Record, and the manufacturer's employee or subcontract engineer, sometimes called a specialty engineer. The principal differences between these two entities on a project are the limits of commercial obligation, professional responsibility and liability. The structural Engineer of Record is responsible to specify the design parameters for the project (e.g. materials, loads, design standards, service limits) and to ensure that the element and assembly designs by others are consistent in the global context of the finished building. The specialty engineer is responsible to design only those elements which the manufacturer is commercially obligated to supply (e.g. by contract) and to communicate the assembly procedures, design assumptions and responses, to the extent that the design relies on or affects work by others, to the Engineer of Record usually described in the manufacturer's erection drawings and 25. [25] assembly manuals. The manufacturer produces an engineered product but does not typically provide engineering services to the project. In the context described, the Architect and Engineer of Record are the designers of the building and bear ultimate responsibility for the performance of the completed work. A buyer should be aware of the project professional distinctions when developing the project plan. Design & Engineering The engineering work in structural steel design includes in-depth analysis and design of the complete structure, in addition to the preparation of construction drawings and shop details. Interarch is an ISO 9001 certified company by UL Inc. USA, for design and manufacture of Pre-Engineered Steel Building Systems and Structures. Interarch structural design team of 200 dedicated professionals and senior structural designers, is well equipped to work in accordance with all Indian and international codes. State-of-art technology is used for detailed design which is at par with international building design standards. All Interach building are designed using the most advanced metal building software like Staad Pro, MBS and others. All building are manufactured using the latest automated cutting and welding equipment. Cater to the extensive manufacturing and automated machinery, keeping in mind the time and cost targets. 26. [26] Quality Control & Safety Quality is the hallmark of the products designed and manufactured by Interarch. The Interarch brand is respected in the market by virtue of inherent quality, reliability and dependability built into the products and services offered by the company. Interarch is an ISO 9001:2000 certified company since January 1999 by Underwriters Laboratories Inc. USA. Some of the quality practices followed by the company which has led to continuous improvements in processes, procedures and products are as follows: All products meet the national and international standard requirements. To ensure quality, all products are passed through stringent quality checks in all the stages of manufacturing. An established quality management system which continuously seeks to improve itself satisfies the relevant national and international quality management system requirements. For e.g. BS.EN.ISO 9001:2000 Source of material is certified to ensure consistency in quality. Materials are procured from reputed suppliers and manufacturers and full traceability is maintained. The production team converts these in to superior products through the use of advanced equipment and highly skilled manpower. Well established in-house Q.A. Laboratory to ensure quality in different stages of manufacturing. High quality welding process and technology are used. Nondestructive testing on welding joints is carried out. Only branded and reputed consumables are used for manufacturing. The project quality department ensures end-to-end quality for its building during execution and completion. This stamp represents Interarch's commitment to quality. It is backed by years of research and development with the most modular equipment and stringent quality checks at each stage of production. 27. [27] International Standards Interarch's pre-engineered constructions are custom-designed solutions to meet the needs of the customer. All building and other structures are designed and constructed in accordance with the Indian Standards for applicable load. They are designed and manufactured in accordance with the latest editions of the following codes: Low-rise Building System Manual (MBMA) - Metal Building Manufacturers Association Inc., USA. Manual for Steel Construction, Allowable Stress Design (AISC) - American Institute of Steel Construction Inc., USA. Cold-Formed Steel Design Manual (AISI) - American Iron and Steel Institute, USA. IS 800 : 2007 IS 875 28. [28] Manufacturing Facilities Interarch boasts its manufacturing capacity of 1, 20,000 MTPA with 3 state of the art facilities. The design as well as manufacturing of steel structures and sections and roofing is ISO 9001 accredited by Underwriters Laboratories. Unit 1: Administration and Works Greater NOIDA, Uttar Pradesh Interarch is one of Indias largest pre-engineered building companies. Interarchs first manufacturing facility at Greater NOIDA, Uttar Pradesh is one of Indias first pre-engineered building manufacturing facilities. Set up in early 2000, Interarch Unit 1 is one of the most efficient manufacturing facilities producing more than 30,000 MT per annum of building and 20,000 MT per annum of roofing and cladding systems. Unit 4 (Works) Kichha, Uttarakhand In 2008, Interarch set up Unit 4 at Kichha, Uttaranchal, which is spread over 20 acres. 29. [29] BUILDING DIVISIONS Pre-Engineered Metal Building Systems About the Product Interarch pre-engineered metal building are tailor-made solutions to a customers needs and are custom-designed to meet exact requirements. These building are flexible enough to suit different building dimensions; they are easily expandable, can withstand harsh climatic conditions and come with maintenance-free exteriors. Pre-engineered building are suitable for both, industrial and commercial operations. Warehouses, factories, aircraft hangars, cold storages, workshops, stadiums, supermarkets or any high-rise building. Interarch Pre-Engineered Metal Building Systems offer modern solutions to all building constructions along with the benefits of superior quality, efficiency, and durability. Design and Engineering Advantages Interarch pre-engineered building are tailor-made solutions as per customer's needs and are custom- designed to meet exact requirements. An Interarch building offers Easy integration of all traditional construction materials such as brickwork, glazing, timber, etc. Optimization in accordance with customer's requirements. Addition of canopies as a direct continuation of the roofline or at a lower level with positive or negative roof slopes. 30. [30] Addition of parapets, partially or completely around the building. Weather-tight roof and wall coverings with accessories for maintenance-free exteriors. Optimized design of steel thereby reducing weight, while meeting all design requirements Quality design, manufacturing and erection. Engineering Strengths Interarch's engineering strengths help convert complex and expensive conventional steel building into simpler and economical pre-designed, pre- engineered building without sacrificing utility and function. Interarch has, with the use of specialized software packages and custom developed analysis, computerized the entire engineering process. Design calculations are comprehensive and the explanations are furnished to enable the consultants in understanding the design of an Interarch Pre- engineered Building. 31. [31] TRACDEK Metal Roof & Wall Systems About the Product In 1992, Interarch pioneered color-coated, engineered metal roof & wall systems in India. Since then, Interarch has been the leading manufacturer and provider of pre-engineered metal roof and wall systems that are used in some of the largest and most pristine projects of the country. With the most widespread network of authorized dealers, channel partners and erectors, Interarch is the largest supplier and installer of metal roofing systems in India. Applications From industrial and infrastructural projects, to commercial developments, malls, offices and homes, Interach offers several systems for structural and architectural roof and wall cladding applications. Permanently coated insulated TRACDEK metal roofing systems are used for industrial and commercial building with durable and watertight cladding systems in flush and profiled finishes with complementary range of accessories suitable for the most stringent environments. TRACDEK roof systems can be used as single skin roof or wall cladding or can be used in combination with advanced multi-layered insulated systems to give optimal thermal and acoustic characteristics. They can also be combined with other cladding systems on the inside to form a sandwich panel system. 32. [32] Advantages Interarch manufactures some of the most advanced roofing systems available in the market, ranging from typical screw-down roofing panels to high-end standing seam roofing systems. Interarch is the only company of its kind in India that can produce all its roofing systems in limitless lengths with site roll-forming capabilities for all its panels. Long Life TRACDEK is manufactured in a high quality Galvalume steel, galvanized steel and aluminium with optional high performance organic coatings for long life, even in coastal areas. High strength TRACDEK profiles provide excellent spanning ability and remarkable recovery after excessive load. Economical The long spanning ability and more coverage per unit mass permits wide support spacing, enabling supporting structure economies. Interarch Light Building Systems About the Product Interarch introduces ground-breaking building system, referred to as Light Gauge Framing Systems. It is the ultimate union of design, materials, machinery and manufacturing of Standard Stud and Track profiles which are produced automatically by combining latest software and machine control system imported from leading technological partners from abroad. The software and machinery specifically are designed for high volume manufacturing operations, Interarch Light is ideal for situations where speed, reliability and flexibility are critical in delivering a project. Every output is 33. [33] accurately formed, cut, punched, dimpled and individually labeled and ready for 'screw together' for assembly. Once at the site, they can be further assembled as per architectural drawings, in no time by simply snapping the wall frames and floor joists together and fixing them with self-tapping screws. Applications Interarch Light Gauge Framing Systems (LGFS) can be used almost everywhere and with limitless potential for any kind of shape, design and quality over conventional system. You will find few of its application below. Residential Residential Bungalows Additional floors on existing residential building Internal partitions and walls Rain screen facades and roof crowns of High rise RCC structures Farm houses Cottages Resorts Guest House Low cost housing projects 34. [34] Industrial & Commercial Security Guard Cabin Construction site offices Industrial office blocks Mezzanine floors in industrial building Labor housing and colonies Generator Rooms Utility blocks Retail outlets- shops & Kiosks Construction site material warehouse (up to 8-10m span) Administrative Block Canteen Advantages Interarch Light Building system has got un-matched advantages over the conventional construction system; few of them have been listed below for you reference Steel structure Can be made according to customer plan i.e.-shape, size and design Time saving for construction No pollution during construction Use of Non-toxic green material Insulation system reduces energy consumption and acts as sound barrier from outside Earth Quake and wind residence Termite proof Water Proof, Fire proof and moisture proof Longer life span and easy to maintain Dismantling possibilities if required 35. [35] TRAC Suspended Ceiling Systems About the Product TRAC ceiling systems set the trend and command a very high market share in India. The TRAC range of metal and Glass Reinforced Gypsum ceilings are specially designed for the Indian market, taking into account of building design, construction practices and weather conditions. INTERARCH introduced TRAC lineal metal ceilings in 1984. Applications The Right Ceiling for the Right Application There is a TRAC ceiling for every need. Ceilings systems are available in gypsum, coated steel and coated aluminium. TRAC ceilings are available in a wide range of panel types for including lineal ceilings, clip-in or lay-in tile and plank ceilings, and C-grid (band raster) ceilings. Metal ceilings are manufactured in aluminium and steel with coil coated or powder coated finishes. All metal ceilings are available in a perforated version for sound absorption, and are designed to integrate with standard lighting fixtures, air diffusers, and partitions. TRAC ceilings are suitable for use in interior and exterior areas in offices, hospitals, schools, restaurants, shops, hotels, airports and other building. TRAC ceilings are also suitable for industrial use and are especially suited to aggressive environments inside factory building. 36. [36] Advantages Trac - The Environment Friendly Ceiling All TRAC ceilings are manufactured from fully recyclable materials. TRAC ceilings are pre-painted and fully pre-fabricated in the factory. The ceiling systems are friendly to handle, and will not promote growth of bacteria or fungi. TRAC ceilings exhibit excellent corrosion resistance. They can withstand very high humidity (up to 100%) and are suitable for use in outdoor areas. Concealing Services Ceilings are primarily installed to conceal services such as HVAC ducting and lighting. The covering up of services necessitates access to the ceiling plenum. Accessibility to the ceiling plenum for maintenance is the most important factor while selecting a suspended ceiling system. All TRAC ceilings are designed to allow easy access. Panels or tiles may be lifted out or clipped off for maintenance or installation of concealed services. Aesthetics 37. [37] Ceilings are often provided to create attractive interiors. TRAC ceilings offer several options to the designer to match aesthetics with function. Acoustics Suspended acoustical ceilings serve to provide sound absorption on the most useful surface in a room. They help in reducing reverberant sound intensity within a room. TRAC ceilings are the most efficient sound absorbing ceilings available in the market today. Human activity in offices and large public spaces generates noise resulting in reduced work efficiency. Acoustical (sound absorbing) ceiling systems help in reducing build-up of reverberant noise because of their excellent sound absorbing properties. This leads to a better working environment and reduced annoyance due to high noise levels. Fire Resistance All TRAC ceilings provide Class 1 Surface Spread of Flame in accordance with BS 476-part 7 (1987). The materials are incombustible as per BS 476-part 4 (1970) and satisfy Class O as per BS 476-part 6 (1989). 38. [38] Turnkey Project Management Interarch projects operate with a team of dedicated professionals working at various locations all over India. Interarch is Indias only provider of turnkey pre- engineered metal building systems, offering a one-stop-shop for all projects. Each project is completed within time and cost targets using the highest quality and safety standards followed internationally. Turnkey project execution improves client-contractor coordination and interface with other site contractors, and allows Interarch to be the preferred bidder for executing large projects as compared to any other company in the market. Project Management at Interarch Single-point contract responsibility. Centralized logistics control. Centralized site management and project control. Highest standards in quality. Trained quality teams look after and continuously monitor projects while they are under execution. Zero-accident policy. Interarchs stringent HSE regulations do not permit opportunities for accidents at our project sites. Trained safety teams operate pan India at all Interarch project sites, ensuring on ground safety as well as safety in execution. 39. [39] Skills & Expertise Infrastructure Projects In our pursuit for excellence in structural steel building solutions, Interarch caters specially to infrastructure projects using its vast experience in design, manufacturing and production of structural systems. The Infrastructure Divisions lines of expertise: Large and complex infrastructure projects World-class airport terminals Sea port infrastructure facilities Large industrial projects and industrial infrastructure Metro rail, elevated monorail terminals Skywalks, steel bridges and flyovers Structural steel building High-rise building 40. [40] The engineering work in structural steel design includes in-depth analysis and design of the complete structure, in addition to the preparation of construction drawings and shop details. Interarch structural design team uses latest designing technologies for analysis and design software such as Staad Pro, Tekla and others. Interarch is an ISO 9001 certified company by UL Inc. USA, for design and manufacturing of pre-engineered steel building systems. Interarchs structural design team is well equipped to work in accordance with all Indian and international building codes. Interarch is proud to be the only company in India with an in-house team of project management, safety and quality engineers. With its four state-of-the-art manufacturing facilities and proven engineering capabilities, Interarch is a strong and technologically preferred engineering company. Logistics & Delivery Over the years, Interarch has successfully retained, trained and developed a dedicated team of logistic partners. They are carefully selected based on their overall capabilities that include vehicle fleet and support network. Quality of trailers and transport vehicles is checked prior to every dispatch to ensure timely delivery with minimum transit time. Customers are updated with the tracking of vehicles in transit through daily e-mails. This is facilitated by a regular interaction 41. [41] of tracking office and the vehicle drivers with the help of mobile phones and vehicle tracking systems. Interarch has a nation-wide network of distributors and builders assuring local professional support. Delivery of materials in good condition is also ensured by the use of the logistic partner network. All consignments are insured during transit. Customized Value Addition Offering no less than the best, Interarch pre-engineered metal building solutions are customized to the needs of each project requirement, be it large or small and cater especially to the following types of construction: Suited to large span building construction. Modular design and building that are expandable even after completion. Quality manufacturing and construction. Energy efficient green building. Quick installation of complex structures using simple bolt-on construction. Architectural versatility. Ideal for fast paced projects. Automotive factories. Retail outlets and shopping malls. Auditoriums and convention halls. Multi-storey office building. Industrial sheds and warehouses. Petroleum outlets. Light gauge building. Airport terminal building. Wide-body aircraft hangars. India has the second fastest growing economy in the world and a lot of it, is attributed to its construction industry which figures just next to agriculture in its economic contribution to the nation. In its steadfast development, the construction industry has discovered, invented and developed a number of 42. [42] technologies, systems and products; one of them being the concept of Pre- engineered Building (PEBs). As opposed to being on-site fabricated, PEBs are delivered as a complete finished product to the site from a single supplier with a basic structural steel framework with attached factory finished cladding and roofing components. The structure is erected on the site by bolting the various building components together as per specifications. PEBs are developed using potential design software. The onset of technological advancement enabling 3d modelling and detailing of the proposed structure and coordination has revolutionised conventional building construction. PEBs have hit the construction market in a major way owing to the many benefits they possess. They exemplify the rising global construction, technology and while they oppose the practice of conventional building construction they simultaneously have taken it to a higher level too. Worldwide, they are a much used concept with studies revealing that 60% of the non-residential low-rise building in USA are pre- engineered; for India the concept has been gaining momentum and the scope of growth is guaranteed looking at India's huge infrastructural requirements. Studies already validate that India has the fastest growing market in the PEB construction segment. The scope of using PEBs ranges from showrooms, low height commercial complexes, industrial building and workshops, stadiums, schools, bridges, fuel stations to aircraft hangers, exhibition centres, railway stations and metro applications. While we are still to see PEBs being used in residences in India, one can see their optimal use in warehouses, industrial sheds, sports facilities etc. The Delhi Airport and the metro projects of Delhi, Bengaluru and Mumbai are also examples of PEB applications. 43. [43] Interarch Building Products Pvt Ltd with headquarter in Noida is India's leading turnkey pre-engineered metal building company and has myriad construction solutions including advanced Pre-engineered Steel Building. Specializing in airport roofing and ceilings for over two decades, one of their coveted projects is DIAL Terminal 3 (Terminal 3, IGI Airport at Delhi) with a seven-layer roof installed over 2,00,000sqm roof area covering the entire airport. On the absence of PEB's in the residential sector in India. "In India, modular construction is still the preferred choice over PEB systems for the residential sector which is mostly due to lack of awareness about the benefits of PEB with the general perception being that they are expensive. Having said that, I would also like to mention that the PEB industry is slowly and steadily gaining its hold in the commercial /residential sector and will certainly see widespread application soon." TATA motors at Pantnagar (Picture courtesy: Interarch Building Products) The PEB industry has evolved over the years. What started as a role limited to design and manufacturing PEBs, has widened today to making firms responsible for the erection of the structures too. Citing facts, The PEB market estimation in India to be around Rs.4000 crores currently. "It has been growing at over 15% for the last few years, and is expected to demonstrate a similar, if not better growth in the years to come". A PEB system in totality consists of a structural system, sandwich panels, roofing, exterior facade and accessories. The PEB concept based on a proper design usually involves a thorough project information data including complete 44. [44] details like building parameters, grade of steel, secondary member details, paint coat on steel members, welding, anchor bolts steel grade, roof & wall liner / panel, insulation, sky light, gutters, facia, mezzanine, ridge ventilation to name a few. Following this input, the drawings for general arrangement, Anchor Bolt & Template Fabrication & Erection are prepared. Advantages Ideal for construction in remote and hilly areas, PEBs offer a complete building system of energy efficient, optimum weight and cost customized fitted requirement. They can be customized as per the climate/design requirements at the site. Since only the bolting needs to be done on the site a quicker construction speed compared to conventional construction is possible. The flexibility of PEBs to be casted even while the foundation is being laid also leads to saving on time. PEBs don't require curing time like concrete and mortar and boast of an immediate occupancy. The quality of the structure being controlled in the factory is superior to that achieved in masonry construction. The time savings lead to cost savings too, which also get enhanced by the lower operating and maintenance costs. Citing cost and time as the most significant advantages of PEBs, A PEB can be erected considerably faster than conventional building, and at a lower investment. This means building owners can start generating profits from their operations in a shorter time frame. Contemporary erection practices adopted by some PEB manufacturers, like the use of boom lifts instead of scaffolding, make PEBs a safer option as well." From the safety point of view, steel building are also resistant to earthquakes and cyclones. PEBs are much lighter in weight than normal steel building owing to their high proportion of recycled content. Interarch Building Products Pvt Ltd, though catering to the heavy steel and industrial building market have recently introduced a light building system that is more efficient and a lighter system of construction catering to economical building, housing systems, light weight homes, villas, and light weight construction in remote locations. 45. [45] PEBs can also prove to be a good bet for affordable housing owing to their speed of construction and low cost, thus helping in rural development projects in India. Their design flexibility is also a plus with wide ranges of available wall and roof sheeting (granite, stone cladding, brickwork, ACP's etc.) and interface details between steel and other materials. PEBs are low maintenance structures requiring only periodic cleaning of roofs, painting and annual washing of eave gutters. The ease of construction makes them hassle free and bestows cleaner sites since the self-supporting components don't require shuttering or scaffolding. Future extensions/modifications or dismantling/relocating can be accommodated easily. "Usually on the PEB structure, flanges or punched holes are provided so that for addition of any future building elements, these flanges can be utilized and welding can be avoided." PEB system - Delhi Cargo (Picture courtesy: Interarch Building Products Pvt Ltd) PEBs offer large clear spans in building (up to 90m) the reason why they are suitable for structures like aircraft hangars and sports facilities. Unlike traditional construction, they don't get affected by weather elements like wind, rain etc. PEB structures are an outcome of a single responsibility as opposed to multiple responsibilities in traditional constructions, leading to better organization and less confusion. 46. [46] Challenges The application of PEB's is economical and speedy for low rise building only (with the maximum eave heights ranging between 25-30 meters). Special care needs to be given to the joining of pre-fabricated sections and to the packing of such sections which involve huge transportation costs. There are challenges with the joinery details which can lead to leakage. But in some cases like the FM Approved' MR-24 Standing Seam Roof System, there is one of a kind's 360o Pittsburgh Double Lock seam which assures leak-proof performance. Also very large prefabricated sections can only be placed on the site by making use of cranes. A PEB structure due to its assembly of various parts requires a painstaking attention to detailing requiring high skilled workers the shortage of skilled labor proving to be one of the lesser disadvantages that they have over traditional masonry construction. Steel has a lower fire resistance as compared to concrete and other construction materials. It also faces issues of buckling, stability and corrosion. Indian Codes still need to be developed which PEB manufacturers can adopt unanimously. "Steel is a more versatile material than concrete and can cater to a wider range of applications. However, it needs architects to visualize how to work with the engineering and systems that allow steel to be effective. Although now most architects in the commercial and industrial spaces are well versed with steel, the introduction of new improved steel codes catering to pre-engineered construction are still restrictive as they are still not utilizing the maximum efficiency of steel. Due to the conservative criteria laid down in previous codes, the current updated versions are also not as efficient as other steel design guidelines used around the world. PEBs are the fastest growing segment in the low-rise construction industry with a substantial role in the development of infrastructure projects adds, "The major challenge in the sector is that people are still looking at conventional method of construction and not considering the speed & long-term benefits of metal building. For this, we are planning to expand the marketing network and project 47. [47] offices throughout the country to serve our clients in a better way." Making the sector organized will also yield positive results. The supply in case of PEBs has been seen to be much more than the demand since many unorganized segments are supplying them at very low costs, compromising on their quality and adopting codes according to their wishes. Government's Role The government could do well with reducing the tax on PEBs to facilitate their easy acceptance by all. A code for PEB application becomes mandatory to recognize the concepts of advanced steel design, which will also lead to PEB becoming recognized as a separate entity. Accepting that the Government is taking major steps to promote the PEB industry, "As per the government's projection of 1$ trillion investment in infrastructure segment during the 12th five year plan, the expected economic growth would be approximately 8.5% which may even rise to 9%. This is surely very crucial for the infrastructure segment as growth in the infrastructure investment is expected with this projection of the government. Although, the fluctuation of prices affects the availability of the capital goods, tax structures etc, the SEZ tax benefits and excise holiday zones encourage more constructors to invest into this sector. Closely looking at the sectors of investment pre- engineered building will have an advantage in the construction industry." The government should take steps like removal or minimization of excise duty components in PEB manufacturing. "The latest budget has witnessed the increase of excise duty from 10.3% to 12.36%. The government should notify Industry owners and Government agencies to promote the steel building concept especially for residential building construction. All constructions in remote areas should be made mandatory with steel construction methodology. Benefits like fast construction and green features in a building should be highlighted. Controlling of the high fluctuations on the steel prices would be good for PEB structures. 48. [48] The company's turnover for the financial year 2012-13, based on current order book, is about Rs 500 crore, growing at 10-15 per cent annually. Principal Categories of Participants In Pre Engineered Building As shown in Figure, there are three categories of participants in the pre- engineered building. The first is the supplier. This party (represented here by Interarch Building) supplies the contractor with the buildings structural frame and envelope. They are responsible for satisfying the codes specified by the general contractor. The second player is the customer (the general contractor) who must deal with the other involved parties such as the architects, the supplier, any subcontractors, the final and end user, etc. The customer is responsible for the erection of the building shell. The final category of participant is the end user. This party purchases and takes the final custody of the completed building. This group deals only with the contractor and also defines the facilitys functions based in the users needs, wants, and abilities. 49. [49] Integrated Business Process Model The remainder of the report discusses the various activities undertaken by Interarch in the production and provision of their products to their customers. Each section corresponds to one of the five phases of a construction project as defined by the Integrated Building Process Model. Within each phase, the actual activities performed by Interarch are described. Manage Facility Manage facility includes all the business functions and management processes required to support the provision of the facility, from its inception to its completion. It captures the generic ideas and the essential functions necessary for presenting an effective management processes. It is separated into the following five sub functions (M1 to M5): Establish management team Develop work scope and needs. Plan/ Control the work Acquire services to provide facility Acquire/ provide resources for facility This function run for the duration of the facility life and represents the activities required from the viewpoint of the facility and the user. 50. [50] Plan facility The IBPM defines planning as the development of the facility idea into a facility program, a project execution plan, and site information. These plans drive te remaining functions of Design facility, Construct facility, and Operate facility by supplying them with some critical information. This phase is divided into the following six Sub functions (P1 to P6): Assign Planning team, Study an define Needs, Study Feasibility, Develop Program Develop Project Execution Program, and Select and acquire site. Plan facility clarifies the project requirements and the owners constraints as well as provides the owner with the chance to influence the project through this decisions at this stage. It is typically performed by the owner, but may be performed by an external consultant depending on the nature of the facility and owners experience. Design Facility Design facility, as identified by the Integrated Business Process Model, comprises all the functions to define and communicate the owners needs to the builder. It is broken into the following six sub functions (D1 to D6): Understand Functional Requirements, Explore Concepts, Develop Systems Schematics, Develop Design 51. [51] Communicate Design to Others, and Maintain design Information and Models. Design is the method by which the needs, wishes, wants, and desires of the owner are defined, quantified, qualified, and communicated to other parties. Design must also take into account the demands society places on it. The activities of the IBPM translate the facility program and execution plan into bid and construction documents and operations documents which allow the facility to meet the owners and societys needs. Construct Facility The Integrated Business Process Model describes the Construct facility phase in terms of the following activities (C1 to C4): Acquire Construction Services, Plan and Control the work, Provide Resources, and Build the facility Interarch Building Products does not do any construction per se; all construction is performed by the general contractors. This appears to be the standard in the industry. Recently, the majority of the construction-type work performed by the company has been that of custom work, paralleling the trend in the industrys design process. In fact, approximately 80% of their orders are now custom building work showing that the industry is branching more towards the design- build method of construction. However, there are cases where Interarch will do some construction related to the expressed warranties the go with their product line (typically replacements and / or repairs). These warranties cover such performance factors as corrosion resistance of roof panels, paint systems, and water tightness. 52. [52] Operate Facility Operate facility, as defined by the IBPM, include the following (O1 to O6): Manage Operations, Monitor Facility condition and Systems, Evaluate Conditions and Detect Problems, Develop Solutions, Select Plan of Action, and Implement Plan. The Integrated Business Process model defines and described the process of facility provision. This process is divided into five sub processes covering the entire life cycle of the facility from initial conception through final demolition. The five sub processes are manage, plan, design, construct, and operate the facility. The principal function into which Interarch directs much of its time and efforts is the design and manufacturing of their products. Interarch design process is highly computerized and integrated manufacturing practices as group technology and numerically controlled equipment. 53. [53] 54. [54] RESEARCH METHODOLOGY Primary Data Primary research consists of a collection of original primary data collected by the researcher. It is often undertaken after the researcher has gained some insight into the issue by reviewing secondary research or by analysing previously collected primary data. It can be accomplished through various methods, including questionnaires and telephone interviews in market research, or experiments and direct observations in the physical sciences, amongst others. The term primary research is widely used in academic research, market research and competitive intelligence. In the following Summer Internship Project I had conducted primary research on Financial Analysis of Interarch Building Products Pvt Ltd and represented the financial condition of this company. There are advantages and disadvantages to primary research. Advantages: Researcher can focus on both qualitative and quantitative issues. Addresses specific research issues as the researcher controls the search design to fit their needs Great control; not only does primary research enable the marketer to focus on specific subjects, it also enables the researcher to have a higher control over how the information is collected. Taking this into account, the researcher can decide on such requirements as size of project, time frame and goal. Disadvantages: Compared to secondary research, primary data may be very expensive in preparing and carrying out the research. Costs can be incurred in producing the paper for questionnaires or the equipment for an experiment of some sort. 55. [55] In order to be done properly, primary data collection requires the development and execution of a research plan. It takes longer to undertake primary research than to acquire secondary data. Some research projects, while potentially offering information that could prove quite valuable, may not be within the reach of a researcher. By the time the research is complete it may be out of date. Low response rate has to be expected. Secondary Data Secondary research (also known as desk research) involves the summary, collation and/or synthesis of existing research rather than primary research, where data is collected from, for example, research subjects or experiments. Care should be taken to distinguish secondary research from primary research that uses raw secondary data sources. The key is distinction is whether the secondary source being used has already been analysed and interpreted by the primary authors. The term is widely used in health research, legal research, and in market research. The principal methodology in health secondary research is the systematic review, commonly using meta-analytic statistical techniques, although other methods of synthesis, like realist reviews and meta- narratives reviews, have been developed in recent years. In a market research context, secondary research is taken to include the re-use by a second party of any data collected by a first party or parties. Sometimes secondary research is required in the preliminary stages of research to determine what is known already and what new data is required, or to inform research design. At other times, it may be the only research technique used. A key performance area in secondary research is the full citation of original sources, usually in the form of a complete listing or annotated listing. Secondary sources could include previous research reports, newspaper, magazine and journal content, and government and NGO statistics. 56. [56] Depreciation, 1.26 Finance Cost, 0.43 Cost of Erection of Builiding, 6.76 Retained Profit, 0.13 Trading Purchases, 37.4 Employee Benefit Expenses, 9.49 Raw material Consumed, 38.26 Dividend Recd. From Current Investment(Income), 0.028 Miscellaneous Expenses, 6.2 DETAILS OF TOTAL EXPENDITURE ON TOTAL EARNING DURING 2012-13 57. [57] Detailed Financial Analysis Liquidity Analysis Liquidity ratios measure a companys ability to meet its maturing short-term obligations. In other words, can a company quickly convert its assets to cash without a loss in value if necessary to meet its short-term obligations? Favourable liquidity ratios are critical to a company and its creditors within a business or industry that does not provide a steady and predictable cash flow. They are also a key predictor of a companys ability to make timely payments to creditors and to continue to meet obligations to lenders when faced with an unforeseen event. Current Ratio Current Assets / Current Liabilities This ratio reflects the number of times short-term assets cover short-term liabilities and is a fairly accurate indication of a company's ability to service its current obligations. A higher number is preferred because it indicates a strong ability to service short-term obligations. The composition of current assets is a key factor in the evaluation of this ratio. Depending on the type of business or industry, current assets may include slow-moving inventories that could potentially affect analysis of a company's liquidity how long could it potentially take to convert raw materials and inventory into finished products? (For this reason, the quick ratio may be preferable to the current ratio because it eliminates inventory and prepaid expenses from this ratio for a more accurate gauge of a company's liquidity and ability to meet short-term obligations.) 58. [58] Quick Ratio (Cash + Marketable Securities + Trade Accounts Receivable) / Current Liabilities This ratio, also known as the acid test ratio, measures immediate liquidity - the number of times cash, accounts receivable, and marketable securities cover short-term obligations. A higher number is preferred because it suggests a company has a strong ability to service short-term obligations. This ratio is a more reliable variation of the Current ratio because inventory, prepaid expenses, and other less liquid current assets are removed from the calculation. The current ratio for Interarch Building Products is 2.2, which compared to the baseline of 2.0 indicates the company's ability to service short-term obligations is satisfactory. However the value of the quick ratio will provide a clearer indication of the company's success in this area. The quick ratio for Interarch Building Product is 1.27, which compared to the baseline of 1.07 indicates the company's ability to service short-term obligations is favourable. 0 0.5 1 1.5 2 2.5 CURRENT RATIO QUICK RATIO 1.93 1.10 2.0 1.07 2.2 1.27 Current Ratio / Quick ratio 2011 2012 2013 59. [59] Altman Z score (A Pvt Manufacturing Firm) ((Working Capital / Total Assets) * 0.717) + ((Retained Earnings / Total assets) * 0.847) + ((Earnings before Interest and Taxes/ Total Assets) * 3.107) + ((Total Equity / Total Liabilities * 0.42) + ((Sales / Total Assets) * 0.998) This ratio represents a numerical ranking that predicts the potential for bankruptcy of a manufacturing company. In general, the lower the score, the higher the odds of bankruptcy. Companies with Z-Scores above 3 are considered to be healthy and therefore unlikely to enter bankruptcy. The Altman Z score for Interarch Building is 2.38 that indicates the company has a relatively satisfactory degree of protection against bankruptcy. 2.25 2.3 2.35 2.4 2.45 2.5 2.55 2.6 2.65 2012 2013 2.61 2.38 Altman Z Score 2012 2013 60. [60] DU Pont Analysis DuPont analysis tells us that ROE is affected by three things: -Operating efficiency, which is measured by profit margin -Asset use efficiency, which is measured by total asset turnover -Financial leverage, which is measured by the equity multiplier ROE = Profit Margin (Profit/Sales) * Total Asset Turnover (Sales/Assets) * Equity Multiplier (Assets/Equity) 2012 2013 Profit margin=5.35 Profit margin=2.09 Total assets turnover=1.42 Total assets turnover=1.61 Equity multiplier=1.61 Equity multiplier=1.49 0 2 4 6 8 10 12 14 2012 2013 12.23 5.01 Du Pont Analysis 2012 2013 61. [61] Accounts Receivable to Working Capital Trade Accounts Receivable / (Current Assets - Current Liabilities) This ratio measures the dependency of working capital on the collection of receivables. A lower number for this ratio is preferred, indicating that a company has a satisfactory level of working capital and accounts receivable makes up an appropriate portion of current assets. The accounts receivable to working capital ratio for Interarch Building is 0.70, which compared to the baseline of 0.71 indicates that the company's Performance is sufficient in this area. 0.702 0.704 0.706 0.708 0.71 0.712 0.714 0.716 2012 2013 0.7155 0.7069 Accounts Receivable to Working Capital 2012 2013 62. [62] Inventory to Working Capital Inventory / (Current Assets - Current Liabilities) This ratio measures the dependency of working capital on inventory. A lower number for this ratio is preferred indicating that a company has a satisfactory level of working capital and inventory makes up a reasonable portion of current assets. The inventory to working capital ratio for Interarch Building Products is 0.77, which compared to the baseline of 0.92 indicates this ratio is in line with company goals. 0.7 0.75 0.8 0.85 0.9 0.95 2012 2013 0.9223 0.7792 Inventory to Working Capital 2012 2013 63. [63] Long Term Liabilities to Working Capital Long Term Liabilities / (Current Assets - Current Liabilities) This ratio measures the degree to which a company's long-term debt has been Used to replenish working capital versus fixed asset acquisition. The long-term liabilities to working capital ratio for Interarch Building Product Pvt ltd. is 0.011, which compared to the baseline of 0.014 indicates the value of this ratio is meeting the company's expectations. The change in the ratio score between both financial years is minute, this firm only has vehicle loans as long term liabilities thus company possess a good condition. 0 0.002 0.004 0.006 0.008 0.01 0.012 0.014 2012 2013 0.014 0.011 Long Term Liabilities to Working Capital 2012 2013 64. [64] Sales to Working Capital Sales / (Current Assets - Current Liabilities) This ratio measures a company's ability to finance current operations. Working capital (current assets -current liabilities) is another measure of liquidity and the ability to cover short-term obligations. This ratio relates the ability of a company to generate sales using its working capital to determine how efficiently working capital is being used. In general, a lower number is preferred because it indicates a company has a satisfactory level of working capital. The sales to working capital ratio for Interarch Building Products Pvt Ltd. is 4.50, which compared to the baseline of 4.05 reveals the companys growth though exceptionally low score indicates inadequate sales level are being generated. The company may want to make an effort to generate additional sales using the available opportunities. 3.8 3.9 4 4.1 4.2 4.3 4.4 4.5 2012 2013 4.0523 [VALUE] Sales to Working Capital 2012 2013 65. [65] The following list includes several suggestions Interarch Building Products should consider to improve the liquidity ratios: Reduce days in accounts receivable to improve current assets by evaluating accounts receivable on a more frequent basis and take a more assertive stance in the collection of accounts receivable and delinquent accounts. Prepare thorough cash forecasts and evaluate the company's ability to meet goals on a regular basis. Consider paying off short-term obligations if the cash position of the company is favourable. Consider converting short-term debt to long-term debt. Reduce levels of non-moving inventory. Activity Ratios Analysis Activity ratios provide a useful gauge of a company's operations by determining, for example, the average number of days it takes to collect on customer accounts and the average number of days to pay vendors. A key point to keep in mind when evaluating these ratios is that seasonal fluctuations are not necessarily reflected in the numbers that are derived from these calculations based on an account balance on one single day. 66. [66] Accounts Receivable Turnover Sales / Trade Accounts Receivable This ratio measures the number of times receivables turn over in a year and reveals how successful a company is in collecting its outstanding receivables. A higher number is preferred because it indicates a shorter time between sales and cash collection. The accounts receivable turnover for Interarch Building Products is 5.7, which Compared to the baseline of 6.3. This is due to the concept of Retention of money. Retention is money held by the client as a safeguard against defects which may subsequently develop and which the contractor may fail to remedy. It is usually set at either 5-10% of the value of the works or 3 %( usually larger) contracts and the payment for retention varies from 6 months to 12 months. Due to retention the Accounts receivable days extends making exceptionally low ratio score in both financial year. 5.2 5.4 5.6 5.8 6 6.2 6.4 2012 2013 5.6629 6.3606 Acccounts Receivable Turnover 2012 2013 67. [67] Days Sales in Receivables Trade Accounts Receivable / (Sales / Days) This ratio measures the average number of days a company's receivables are outstanding. A lower number of days is desired. An increase in the number of days receivables are outstanding indicates an increased possibility of late payment by customers. Companies should attempt to reduce the number of days sales in receivables in order to increase cash flow. The general rule used is that the time allowed for payment by the selling terms should not be exceeded by more than 10 or 15 days. The days sales in receivables for Interarch Building Products is 57 days that indicates the company is not very effective in collecting outstanding receivables. This is due to retention money which often clients holds while making the payment for projects. 52 54 56 58 60 62 64 66 2012 2013 64.4551 57.3848 Days Sales in Receivables 2012 2013 68. [68] Operating Cycle Days (Inventory / (Cost of Sales / Days)) + (Trade Accounts Receivable / (Sales / Days)) This ratio calculates the total conversion period for a company, or in other words, the average number of days it takes to convert inventory into cash from sales. It is calculated by adding together the days cost of sales in inventory to the days sales in receivables. Evaluating this ratio can be helpful in gauging the effectiveness of marketing, determining credit terms to extend to customers, and collecting outstanding accounts. The operating cycle days for Interarch Building Products is 158 days, which compared to the baseline of 195 days indicates the company may not be Successfully minimizing the amount of time it takes to convert products and Services into cash. Though there is a big time growth in this firm. 0 20 40 60 80 100 120 140 160 180 200 2012 2013 195 158 Operating Cycle Days 2012 2013 69. [69] 70. [70] Sales to Assets Sales / Total Assets This ratio measures a company's ability to produce sales in relation to total assets to determine the effectiveness of the company's asset base in producing sales. A higher number is preferred, indicating that a company is using its assets to successfully generate sales. This ratio does not take into account the depreciation methods employed by each company and should not be the only measure of effectiveness of a company in this area. Sales to assets for Intearch Building Products is 1.60, which compared to the baseline of 1.41 indicates the company's performance in this area is lacking and management should consider taking measures to improve this ratio. 1.3 1.35 1.4 1.45 1.5 1.55 1.6 1.65 2012 2013 1.4176 1.6093 2012 2013 71. [71] Percent Depreciation Expense to Net Fixed Assets Depreciation Expense / Net Fixed Assets * 100 This ratio measures the reasonableness and consistency of a company's depreciation expense over time. The percent depreciation expense to fixed assets for Interarch Building Pvt Ltd. Is 0.12%, which compared to the baseline of 0.13% indicates the value of this ratio is meeting the company's expectations. A high depreciation to fixed assets ratio may suggest that a business is writing off old equipment to make way for newer ones. A high ratio may suggest that the present fixed assets have a short useful life and, therefore, need to be replaced quickly. 0.114 0.116 0.118 0.12 0.122 0.124 0.126 0.128 0.13 2012 2013 0.13 0.12 2012 2013 72. [72] Percent Accumulated Depreciation to Fixed Assets Accumulated Depreciation / Fixed Assets * 100 This ratio measures the cumulative percentage of productive asset costs a company has allocated to operations. The percent accumulated depreciation to fixed assets for Interarch Building Pvt ltd is 0.41%, which compared to the baseline of 0.39% indicates this ratio may be on target with company objectives. Low ratios are desirable, while an increase to this ratio over time can be indicative of a problem. If the ratio increases over time and is high relative to its peers, the company may have trouble generating enough cash to purchase new equipment. If true, the company's maintenance expense to fixed assets ratio should be analyzed to see if it's declining over time. 0.38 0.385 0.39 0.395 0.4 0.405 0.41 2012 2013 0.39 0.41 % Accumulated Depn to Fixed Assets 2012 2013 73. [73] Fixed Assets to Equity (Fixed Assets - Accumulated Depreciation) / Total Equity This ratio measures the extent to which investors' capital was used to finance productive assets. A lower ratio indicates a proportionally smaller investment in fixed assets in relation to net worth, which is desired by creditors in case of liquidation. Note that this ratio could appear deceptively low if a significant number of a company's fixed assets are leased. Net fixed assets to equity for Interarch Building Pvt Ltd. is 0.37, which compared to the baseline of 0.36 indicates the company's performance is adequate in this area. 0.354 0.356 0.358 0.36 0.362 0.364 0.366 0.368 0.37 2012 2013 0.36 0.37 Fixed Assets to Equity 2012 2013 74. [74] Free Reserves per Share (General Reserves+ Profit & Loss Balance+ Share Premium /Number of equity shares) The free reserves per Share for Interarch Building Products is 2086.36, which compared to the baseline of 2361.68% is a good indication of financial health for the company. Though it seems to be declining in 2013 FY which should be considered by companys Management and proper measure should be taken against declining. 1900 1950 2000 2050 2100 2150 2200 2250 2300 2350 2400 2012 2013 2361.8 2086.36 Free Reserves Per Share 2012 2013 75. [75] Inventory Turnover Sales /Inventory A ratio showing how many times a company's inventory is sold and replaced over a period. A low turnover implies poor sales and, therefore, excess inventory. A high ratio implies either strong sales or ineffective buying. The Inventory turnover ratio for Interarch Building Products is 5.77, which compared to the baseline of 4.39%. In general, Companies selling perishable items have very high turnover. But this company sells non-perishable products which doesnt tend to deteriorate over time so this company can keep their products in warehouse for long time. 0 1 2 3 4 5 6 2012 2013 4.39 5.77 Inventory Turnover Ratio 2012 2013 76. [76] Average raw Materials Holdings Raw material stock/ Cost of production or Cost of Goods Consumed * 365 This ratio calculates the length of time raw materials is held between purchase and sale. The Average Raw materials holdings for Interarch Building Products is 83.16, which compared to the baseline of 97.18 .For Raw materials holding period ratios, a low ratio is usually seen as a sign of good working capital management. It is very expensive to hold inventory and thus minimum inventory holding usually points to good practice. In FY 2013 the raw material holding period seems to be decreasing which indicates good inventory management within the firm. 75 80 85 90 95 100 2012 2013 97.18 83.16 Average raw Materials Holdings 2012 2013 77. [77] Operating Cash Flow /Sales Ratio Operating cash flow / Sales Ratio = Operating Cash Flows / Sales Revenue x 100% This ratio, which is expressed as a percentage, compares a company's operating cash flow to its net sales or revenues, which gives investors an idea of the company's ability to turn sales into cash. It would be worrisome to see a company's sales grow without a parallel growth in operating cash flow. Positive and negative changes in a company's terms of sale and/or the collection experience of its accounts receivable will show up in this indicator. The Operating Cash Flow / Sales Ratio for Interarch Building Products is 1.94, which compared to the baseline of 15.9% indicates sales may not be contributing enough to the company's bottom line. The higher this ratio is the better it is for the company. Greater amounts of operating cash flows are always desirable. Although there is not any standard guideline for this ratio but a consistent and/or increasing trend in this ratio is a positive indication of good debtors management. 0 2 4 6 8 10 12 14 16 2012 2013 15.9 1.94 Operating Cash Flow/ Sales Ratio 2012 2013 78. [78] Profitability Ratios Profitability ratios measure a companys ability to use its capital or assets to generate profits. Improving profitability is a constant challenge for all companies and their management. Evaluating profitability ratios is a key component in determining the success of a company. It is important to note that all profitability ratio calculations are based on earnings before taxes. Percent Gross Profit ((Sales - Cost of Sales) / Sales) * 100 This ratio measures the gross profit earned on sales and reports how much of each sales dollar is available to cover operating expenses and contribute to profits. The percent gross profit for Interarch Building Products is 37.4%, which compared to the baseline of 40.8% is a good indication of financial health for the company.The average manufacturer's gross profit percentage varies between 25 percent and 35 percent Gross profit percent applies solely to the finances of a company prior to having to factor in such variables as the taxes, employee payments, as well as a host of other figures that differ from one store to another. 35 36 37 38 39 40 41 2012 2013 40.8 37.4 Gross Profit 2012 2013 79. [79] Operating Profit Margin Operating Profit / Net Sales * 100 This ratio measures how much profit a company makes on each sales rupees received and how well a company could potentially deal with higher costs or lower sales in the future. The Operating Profit Margin for Interarch Building Products is 1.33, which Compared to the baseline of 7.54% indicates sales may not be contributing Enough to the company's bottom line thus needed to be considered by Management efficiently. 0 1 2 3 4 5 6 7 2012 2013 6.15 0.75 Operating Profit Margin 2012 2013 80. [80] Percent Rate of Return on Assets Net Income after tax/ Total Assets * 100 This ratio measures how effectively a company's assets are being used to generate profits. It is one of the most important ratios when evaluating the success of a business. A higher number reflects a well-managed company with a healthy return on assets. Heavily depreciated assets, a large number of Intangible assets, or any unusual income or expenses can easily distort this Calculation. The percent rate of return on assets for Interarch Building Products is 0.003%, which compared to the baseline of 0.075% indicates there is a need for improvement in this area to ensure the company can remain competitive and continue to operate successfully. There is a drop in Rate of Return in 2012-2013 FY. 0 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 2012 2013 0.075 0.003 Rate of Return on Assets 2012 2013 81. [81] Operating Profit per Share Operating Profits/ Number of Equity Shares Operating earnings per share is defined as net operating earnings divided by the weighted average number of fully diluted shares outstanding for the period. Per share results referenced in the text of this press release are on a fully diluted basis. The Operating Profit per Share for Interarch Building Products is 75.47, which compared to the baseline of 404.7 indicates management may not be effectively managing the profits earned based on the owners investment in the Company. 0 50 100 150 200 250 300 350 400 450 2012 2013 404.7 75.47 Operating Profit Per Share 2012 2013 82. [82] Return on Capital Employed (ROCE) Earnings before Interest and Tax (EBIT) / Shareholders Funds A financial ratio that measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates more efficient use of capital. ROCE should be higher than the companys capital cost; otherwise it indicates that the company is not employing its capital effectively and is not generating shareholder value. The percent rate of return on Capital Employed for Interarch Building Products is 0.03, which compared to the baseline of 0.17 indicates management may not be effectively managing the profits earned based on the owners investment in the company. ROCE is a useful metric for comparing profitability across companies based on the amount of capital they use. 0 0.02 0.04 0.06 0.08 0.1 0.12 0.14 0.16 0.18 2012 2013 0.17 0.03 Return on Capital Employed 2012 2013 83. [83] Percent Rate of Return on Equity Earning after tax / Total Equity * 100 This ratio expresses the rate of return on equity capital employed and measures the ability of a company's management to realize an adequate return on the capital invested by the owners in a company. A higher number is preferred for this commonly analysed ratio. The percent rate of return on equity for Interarch Building Products is 0.5%, which compared to the baseline of 12.21% indicates management may not be effectively managing the profits earned based on the owners investment in the Company. In both financial year the Nominal Value of Share is Rs.100. The Return on Equity value seems to be falling in 2013 FY. 0 2 4 6 8 10 12 14 2012 2013 12.21 0.5 Return on Equity 2012 2013 84. [84] Coverage ratios Coverage ratios assess a companys ability to meet its long-term obligations, remain solvent, and avoid bankruptcy. It measures how well a companys cash flow covers its short-term financial obligations. Lenders evaluate coverage ratios to determine the degree to which a company could become vulnerable when faced with economic downturns. A company with a high level of debt poses a higher risk to long-term creditors and investors. Debt to Total Assets Total Liabilities / Total Assets This ratio measures what proportion of debt a company is carrying relative to its assets. A ratio value greater than one indicates a company has more debt than assets. Naturally, companies and creditors prefer a lower number. The percent rate of return on equity for Interarch Building Products is 0.5%, which compared to the baseline of 12.21% indicates management is effectively managing the debts against the total assets.One shortcoming of the total debt to 0 0.005 0.01 0.015 0.02 0.025 2012 2013 0.013 0.025 Debt to Total Assets 2012 2013 85. [85] total assets ratio is that it does not provide any indication of asset quality, since it lumps all tangible and intangible assets together. Debt Equity ratio Long term loans or short term debts only vehicle loans/Shareholders Equity A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity. It indicates what proportion of equity and debt the company is using to finance its assets. A high debt/equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense. The Debt Equity ratio for Interarch Building Products is 0.037, which compared to the baseline of 0.022 which is very less because Interarch have only vehicle loans as long term debt and in short term debts it has some secured loans from banks.This shows company has low debts thus less liabilities against its shareholders equities. 0 0.005 0.01 0.015 0.02 0.025 0.03 0.035 0.04 2012 2013 0.022 0.037 Debt - Equity Ratio 2012 2013 86. [86] Long term Debt Equity ratio Long term debts/ Shareholders Equity A ratio showing the financial leverage of a firm, calculated by dividing long-term debt by the amount of capital available. A variation of the traditional debt-to-equity ratio, this value computes the proportion of a company's long-term debt compared to its available capital. By using this ratio, investors can identify the amount of leverage utilized by a specific company and compare it to others to help analyze the company's risk exposure. Generally, companies that finance a greater portion of their capital via debt are considered riskier than those with lower leverage ratios. The Debt Equity ratio for Interarch Building Products is 0.008, which compared to the baseline of 0.005 which is very less because Interarch have only vehicle loans as long term debt. This ratio Score indicates this company is less riskier With no long term obligations towards companys capital. 0 0.001 0.002 0.003 0.004 0.005 0.006 0.007 0.008 2012 2013 0.005 0.008 Long term Debt Equity ratio 2012 2013 87. [87] Debt Service Coverage Ratio Net operating income / Total Debt Services In corporate finance, it is the amount of cash flow available to meet annual interest and principal payments on debt, including sinking fund payments. A DSCR of less than 1 would mean a negative cash flow. A DSCR of less than 1, say .95, would mean that there is only enough net operating income to cover 95% of annual debt payments. The Debt Service Coverage ratio for Interarch Building Products is 1.94 , which compared to the baseline of 6.29 .The fall in DCSR in 2013 depicts that there is an decrease in net operating income. 0 1 2 3 4 5 6 7 2012 2013 6.29 1.94 Debt Coverage ratio 2012 2013 88. [88] Conclusion & Recommendation Interarch have a lot of advantages and some challenges that are being confronted successfully. It is important to realize that in their case whatever can be done in advance should be done in advance. Efforts should be made to reduce the number of parts and material and use light weight elements to save on the transportations costs. However, the most important step is to increase the awareness amongst people so that there can be a shift from conventional structures to PEBs. Interarch is focusing on training and development of their partners and vendors as well the industry is hoping to see a wider application of PEBs. There is no doubt looking at the way the population density particularly in metro cities, horizontal construction has been put on restriction, and comfortably spread out real estate is hard to find. Lack of space due to exponential rise in population in urban areas has not only given way to taller building with more floors, but also stresses on the fact that the construction has to be faster. The use of steel in high-rise building comes into vogue. High rise building or multi-storey building, built completely in steel or primarily with steel are a fairly limited in India. Building a high rise or any multi-level building demands the use of light-weight yet strong materials. Steel, by virtue of its high strength to weight ratio enables