voluntary retirement schemes provided by public sector banks

8/9/2019 Voluntary Retirement Schemes Provided by Public Sector Banks

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PROJECT REPORT

ON

Voluntary Retirement schemes provided by public

sector Banks

Submitted in partial fulfillment of requirement of Bachelor of Business

Administration (B.B.A) General

BBA VIth SEMESTER B!E!

B"TC# $%&$'$%&(

Name o) *uide: Ms. Mudha Sehal Name o) +tudent: Amit !umar Mishra

,esi*nation: Asst. "rofessor Enrollment no.:#$%&'#*&

J"-"NN"T# INTERN"TION". /"N"-E/ENT +C#OO.

[1]


2/103

"C0NO1.E,-E/ENT

A lot of effort has one into this trainin report. M+ than,s are due to man+

people -ith -hom ha/e been closel+ associated.

This report bears the imprint of man+ people. Riht from the e0perienced staff of

nterarch Buildins "roducts "/t 1td.2 to the staff of 3aannath nternational

Manaement School2 4e- 5elhi -ithout -hose support and uidance -ould

ha/e not ot the unique opportunit+ to successfull+ complete m+ internship in this

esteemed orani6ation. ta,e this opportunit+ to e0press m+ deep ratitude to all

the emplo+ees of nterarch Buildins "roducts "/t 1td.2 4oida. Also am

indebted for the rich uidance2 ,no-lede and suestions pro/ided b+ m+uide2 Mr. Rakeshwar Nath Mishra(A7"2 Accounts) -ho too, sincere efforts and

illustrated the 8inancial concepts of this orani6ation2 -ith their /ast ,no-lede in

the field2 -hich helped me in carr+in out m+ internship. am ratified to

Mr.Mahesh Verma(7"2 9perations) for their earnest coordination o-in to -hich2

had the leup of underta,in the internship at the prominent orani6ation2

nterarch Buildins "/t ltd. 1ast but not least2 also than, all those people -hom

met in the compan+ durin m+ internship and helped me to accomplish m+

pro;ect in the most efficient and effecti/e manner.

,ate:

Place: 4e- 5elhi

+ubmitted by: Amit !umar Mishra

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+T2,ENT+ 2N,ERT"0IN-

hereb+ declare that ha/e carried out pro;ect on the topic entitled 3 4inancial

"nalysis o) Interarch Buildin*s Products Pvt .td 5at 3aannath nternational

Manaement School2 4e- 5elhi.

further declare that this pro;ect -or, is based on m+ oriinal -or, and no

part of this pro;ect has been published or submitted to an+bod+.

("mit 0umar /ishra)

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CERTI4IC"TE O4 CO/P.ETION

This is to certif+ that the dissertation


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(&) .i7uidity Ratio

=urrent< uic, Ratio

Altman D score

5u pont Anal+sis

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n/entor+ to or,in =apital 1on Term 1iabilities to or,in =apital

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(@) "ctivity 8 E))iciency Ratio

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Sales to Assets

5epreciation E0penses to Assets

Accumulated 5epreciation to Assets

8i0ed Assets to Equit+

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9peratin =ash 8lo- to Sales

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*%(') Pro)itability Ratio

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E9EC2TIVE +2//"R:

[6]


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The pro;ect -or, is pursued as a part of BBA (General) =urriculum at F3aannath

nternational Manaement School2 5elhi. t is underta,en as a traineeship at

nterarch Buildins "roducts "/t 1td.

n structural enineerin2 a pre'en*ineered buildin* ("EB) is desined b+ a"EB supplier or "EB manufacturer2 to be fabricated usin best suited in/entor+

of ra- materials a/ailable from all sources and manufacturin methods that can

efficientl+ satisf+ a -ide rane of structural and aesthetic desin requirements.

ithin some eoraphic industr+ sectors these buildins are also called "re

Enineered Metal Buildins ("EMB) or2 as is becomin increasinl+ common due

to the reduced amount of preenineerin in/ol/ed in custom computeraided

desins2 simpl+ Enineered Metal Buildins (EMB).

?istoricall+2 the primar+ framin structure of a preenineered buildin is an

assembl+ of shaped members2 often referred as beams. n preenineered

buildins2 the beams used are usuall+ formed b+ -eldin toether steel plates

to form the section. The beams are then fieldassembled (e.. bolted

connections) to form the entire frame of the preenineered buildin. Some

manufacturers taper the framin members (/ar+in in -eb depth) accordin to

the local loadin effects. 1arer plate dimensions are used in areas of hiher

load effects.

9ther forms of primar+ framin can include trusses2 mill sections rather than

threeplate -elded2 castellated beams2 etc. The choice of economic form can

/ar+ dependin on factors such as local capabilities (e.. manufacturin2

transportation2 construction) and /ariations in material /s. labour costs.

T+picall+2 primar+ frames are &5 t+pe frames (i.e. ma+ be anal+6ed usin t-o

dimensional techniques). Ad/ances in computeraided desin technolo+2

materials and manufacturin capabilities ha/e assisted a ro-th in alternate

forms of preenineered buildin such as the tension fabric buildinand more

sophisticated anal+sis (e.. threedimensional) as is required b+ some buildin

codes.

[7]
http://en.wikipedia.org/wiki/Structural_engineeringhttp://en.wikipedia.org/wiki/I-beamhttp://en.wikipedia.org/wiki/Tension_fabric_buildinghttp://en.wikipedia.org/wiki/I-beamhttp://en.wikipedia.org/wiki/Tension_fabric_buildinghttp://en.wikipedia.org/wiki/Structural_engineering


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=old formed D and =shaped members ma+ be used as secondar+ structural

elements to fasten and support the e0ternal claddin.

Rollformed profiled steel sheet2 -ood2 tensioned fabric2 precast concrete2

masonr+ bloc,2 lass curtain -all or other materials ma+ be used for the e0ternalcladdin of the buildin.

n order to accuratel+ desin a preenineered buildin2 enineers consider the

clear span bet-een bearin points2 ba+ spacin2 roof slope2 li/e loads2 dead

loads2 collateral loads2 -ind uplift2 deflection criteria2 internal crane s+stem and

ma0imum practical si6e and -eiht of fabricated members. ?istoricall+2 pre

enineered buildin manufacturers ha/e de/eloped precalculated tables for

different structural elements in order to allo- desiners to select the most

efficient beams si6e for their pro;ects. ?o-e/er2 the table selection procedures

are becomin rare -ith the e/olution in computeraided custom desins.

hile preenineered buildins can be adapted to suit a -ide /ariet+ of structural

applications2 the reatest econom+ -ill be reali6ed -hen utilisin standard

details. An efficientl+ desined preenineered buildin can be lihter than the

con/entional steel buildins b+ up to @#H. 1ihter -eiht equates to less steel

and a potential price sa/ins in structural frame-or,.

Interarch Buildin* Products Pvt .tdcommenced its operations in $%'2 and

pioneered the hihend metal interior products mar,et in ndia. nterarch has

been the first mo/er in ndia2 riht from metal ceilins2 to blinds2 metal roofin to

preenineered buildins.

Toda+2 @# +ears later2 nterarch is a leadin turn,e+ "reEnineered Steel

=onstruction Solution pro/ider in ndia -ith interated facilities for desin2

manufacture2 loistics2 suppl+ and pro;ect e0ecution capabilities for pre

enineered steel buildins. nterarch holds a sinificant part of mar,et share in

ndia for metal buildin s+stems. nterarch -or,s in close association -ith

industr+ leaders in pro;ect de/elopment and construction2 pro/idin support to

critical industrial2 commercial and infrastructure pro;ects.

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nterarch is also the parent compan+ of nterarch nfrastructure2 a ne- unit of the

compan+ that caters specificall+ to hea/+ steel structure and lare infrastructure

pro;ects in the countr+.

nterarch has been instrumental in bein a ,no-lede leader and industr+,no-lede spo,esperson -hen it comes to steel buildin manufacturin and

construction and runs /arious mindshare communities for the influencers in the

industr+.

nterarch Buildin nno/ators and nterarch =ertified Builders brin toether t-o

critical ,ind of influencers and partners of the industr+2 pro/idin them a

communit+ to share ideas. hile Buildin nno/ators brins toether the best

architects and enineers2 as -ell as end users to share their e0pertise2 the

=ertified Builder proram started b+ nterarch helps in promotin better

e0ecution2 safet+ and qualit+ in construction.

nterarch is also a certified reen buildin partner and all our products compl+

-ith 1EE5 and GB= norms. 1oo, for the AM Green loo on our buildins

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[10]

Toda+2 nterarch -or,s -ith industr+ ma;ors to incorporate its products and

ser/ices for desin and construction of ne- facilities. nterarch -or,s in close

association -ith industr+ leaders in pro;ect de/elopment and construction2

pro/idin support to critical industrial2 commercial and infrastructure pro;ects.

ith its rich heritae of o/er t-ent+ fi/e +ears2 nterarch Buildin "roducts "/t.

1td. pioneered hihend metal buildin products in ndia and is proud to be the

countr+Is leadin turn,e+ preenineered metal buildin =ompan+. ith its

e0tensi/e interated desin2 manufacture2 suppl+ and e0ecution capabilities2nterarch holds a sinificant part of mar,et share in ndia for metal buildin

s+stems. nterarch Buildin "roducts started off as a compan+ -hich completel+

chaned the face of ndian metal interior products mar,et -ith its premium qualit+

metal suspended ceilins. nterarch2 thereafter2 immediatel+ cauht hold of a

substantial mar,et share and e0panded its product rane -ith the introduction of

-indo- co/erins under the same brand name. "ioneerin enineered

TRA=5E!J Metal Roofin and =laddin products and preenineered steel

construction solutions2 nterarch has set ne- standards of qualit+2 trust and

-or,manship -ith man+ lare scale and oneofa,ind pro;ects to its credit.

Achie/ements K ith o/er & +ears of e0perience2 nterarch is the onl+ trul+

ndian compan+ in the industr+ pro/idin interated desin2 enineerin2

manufacturin and e0ecution of metal buildin solutions to clients. K More than

### pro;ects e0ecuted in ndia. K 9/er @2###2### m& of roofin claddin

installed per +ear. K 1arest clear span buildins e0ecuted in ndia -ith more than

%# m& of column free space. K 1arest multi store+ preenineered buildin

pro;ects e0ecuted for Reliance =orporate "ar,2 Mumbai 2 in less than > months. K

1arest sinle contract e0ecuted for preenineered steel construction -ith sinle

order /alues e0ceedin LS5 & million. K 1eadin preferred supplier of

construction solutions to all the top automoti/e industr+ pla+ers in ndia2 includin

Tata Motors2 GM2 S,oda Auto2 Ba;a;2 ?+undai Motors2 8iat and ?onda. K

=ompleted more than ### m& of buildins for Tata Motors Ace Truc,Is

Greenfield plant for in Rudrapur2 ndia in less than % months. K =aptured morethan ### m& of buildin for Tata Motors 4ano =ar "ro;ect in Sinur2 Marco

"olo Bus "ro;ect in 5har-ad and 4apur2 ndia. K 8irst e/er FAutomoti/e "aint

Shop constructed usin preenineered s+stem. K Sinle larest buildin for

8iat 2 -ith %#2### m& under one roof. K 9/er $## "etrol "ump 9utlet =anopies

e0ecuted all o/er ndia for Reliance "etroleum. K 1arest preenineered buildin

structural s+stem for 5elhi nternational Airport G Terminal @ -ith %### mt of

Structural Steel S+stem for the terminal buildin as -ell as o/er %#2### m& of *

1a+er Roofin s+stems finished in aluminium.


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C#"PTER I

INTRO,2CTION TO T#E TOPIC

ndia is ro-in rapidl+. Surin -ith +outhful 6est and passion2 ndia shines on

the lobal map. ith stories of enterprise2 achie/ement and success2 nterarch is

committed to buildin ndia on a foundation of Strenth2 and that too at

unprecedented Speed ."ro/idin securit+ and Safet+ to o/er a billion ndians.

nterarch is one of ndiaIs fastest ro-in buildin solutions companies2 and is

proud to be a part of the reat ndian ro-th stor+ in this landscape of proress

and st+le. Architects2 nterior 5esiners and Builders in ndia and trust nterarchIs

sustainable and read+tobuild products for industrial2 commercial and residential

applications..

ndiaIs ro-th is e0pected to impro/e in '. FndiaIs ro-th is e0pected to

reco/er from '.' per cent in @ to .' per cent in '2 supported b+ slihtl+

stroner lobal ro-th2 impro/in e0port competiti/eness and implementation of

recentl+ appro/ed in/estment pro;ects.

FA pic,up in e0ports in recent months and measures to curb old imports ha/e

contributed to lo-erin the current account deficit. "olic+ measures to bolster

capital flo-s ha/e further helped reduce e0ternal /ulnerabilities .9/erall ro-th

is e0pected to firm up on policies supportin in/estment and a confidence boost

from recent polic+ actions2 but -ill remain belo- trend .=onsumer price inflation

is e0pected to remain an important challene2 but should continue to mo/e onto

a do-n-ard tra;ector+.

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The outloo, also estimated that ndiaIs ro-th rate -ould increase to >.' per cent

in . n &2 ndiaIs ro-th rate stood at '.* percent. F8or ndia2 real G5"

ro-th is pro;ected to strenthen to .' per cent in ' and >.' per cent in

assumin that Go/ernment efforts to re/i/e in/estment ro-th succeed

and e0port ro-th strenthens after the recent rupee depreciation.

t -as e0pected to ro- at *.>H in @ led b+ an increase in consumption in the

lare middle class2 a ro-in labor force and stron rural demand. Rural demand

and the Ariculture sector pla+ an important role in the ro-th of our econom+.

*#H of our population li/es in rural ndia and consumes more than '#H of

consumer products and durables. Aricultural sector continued to perform -ell

and contributed @.$H to ndiaIs G5". 8ood rain production at million MT

this +ear -as the hihest e/er and disposable income in rural areas increased.

Go/ernment initiati/es for inclusi/e ro-th an emplo+ment uarantee a/e an

impetus to reater producti/it+2 hiher disposable income and spendin in rural

ndia .The ndian industrial sector faced hih input costs due to inflation and hih

interest rates. 5epreciation of the ndian Rupee aainst the LS 5ollar

sinificantl+ increased cost of imports and freiht due to hiher fuel prices. E/en

in such lobal uncertaint+ and /olatilit+2 ndiaIs stron fundamentals made her

one of the fastest ro-in economies in the -orld.

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Economic indicators sho- that ro-th in the "EB industr+ is e0pected to outpace

ndiaIs G5" ro-th. The ndian "EB industr+ has sho-n a health+ ro-th rate of

around #H (Co C). =urrentl+ the ndia industr+ has reater manufacturin

capabilit+ than demand. Therefore2 a lot of "EB companies ha/e decided to add

hea/+ structures and multistore+ buildins to their portfolio.

nfrastructure and construction sements are fundamental to economic

de/elopment and normall+ ro- at t-ice the rate of G5". The ndian consumer

prefers better qualit+ buildin materials and needs faster construction methods

due to fast economic ro-th2 reater disposable income and hih e0posure to

media. n the construction industr+ there is rapid miration from con/entional

techniques and products. Modern products of superior qualit+ and technolo+ are

bein adopted. The+ enable faster speed2 reater strenth and hiher safet+.

nterarch caters to the ro-in demand of the buildin and construction industr+

-ith a stron portfolio of products for industrial and commercial applications.

nterarchIs preenineered and smart steel buildins pro/ide superior desin2

faster speed and a hih deree of certaint+ for pro;ect completion. The+ are

replacin con/entional construction methods for -arehouses and factor+ sheds.

?ih performance products li,e access floors2 pol+carbonate roofin and fi0in

accessories are bein adopted b+ builders and contractors. This compan+ offers

a rane of read+touse hih qualit+ products and superior ser/ices for the

construction industr+. nterarch is proud to be an interal part of the stron ndian

ro-th stor+.

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#I+TOR:

nterarch Buildin "roducts "/t 1td. is a "ri/ate =ompan+ incorporated

9n @# 4o/ember $%@. t is classified as ndian 4onGo/ernment =ompan+ and

is reistered at Reistrar of =ompanies2 5elhi. ts authori6ed share capital is

Rs.##2###2### and its paidup capital is Rs. *2##@2###.

nterarch Buildin "roductsstarted off as a compan+ -hich completel+ chaned

the face of ndian metal interior products mar,et -ith its premium qualit+ metal

suspended ceilins. nterarch2 thereafter2 immediatel+ cauht hold of a

substantial mar,et share and e0panded its product rane -ith the introduction of

-indo- co/erins under the same brand name.

The concept of "EB is e/ol/in from bo0 li,e steel structures to aestheticall+

pleasin ones. "EB offers distinct ad/antaes such as shorter pro;ect completiontime and o/erall cost efficienc+ as compared to con/entional buildins .9-nerIs

toda+ understand the /alue of earl+ occupanc+ and hence initial acceptance for

"EBIs o/er con/entional buildins is ro-in constantl+.

[14]
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This shift is hiher in industrial applications2 follo-ed b+ infrastructure and

commercial structures.

9/er the +ears there has been a /isible e/olution in the "EB industr+. The

acceptance of preenineered buildin s+stems has been hih in the industrial

sement especiall+ for manufacturin applications in automobile2 equipment2

consumer oods etc. hile manufacturin is certainl+ a Nprimar+ demand dri/erI

it is closel+ follo-ed b+ infrastructure and the commercial sement.

arehousin is oin to create fresh business opportunities due to shortae of

Nstorae facilitiesI required for oranised retail and aricultural applications -here

equal amount of importance is bein i/en to stoc,in oods -ithout causin an+

damae.

"EB desins are unique to match the operational requirements of each customer

-hich results in optimum usae of space. This has sinificant ad/antae for

se/eral applications. The potential of the -arehousin mar,et has not been full+

e0plored as far as "EB solutions are concerned. =urrentl+2 in/estments are

bein made in ma,in industrial and commercial buildins. 9nce the focus shifts

to ndian infrastructure2 "EB usae in those applications -ill o up as -ell.

ndiaIs "EB industr+ is fairl+ similar to that of other countries. e are facin

challenes in conditions at construction sites. e are settin up hiher safet+

standards in pro;ects underta,en b+ us. As a polic+2 -e do address safet+ at the

same le/el across the lobe2 despite the countr+ -e are in.

ualit+ control is more /ariable in ndia. =ost /s. qualit+ is not onl+ an ndian

phenomena but a lobal sub;ect. E/er+one demands for best qualit+ at the

lo-est price. n this scenario2 nterarchIs offers the best solution that matches our

lobal standards at the riht price. Superiorit+ in products pro/ides a competiti/eede and pro/ide better qualit+ products and ser/ices in the mar,et. n the

industr+ sector ualit+ cannot be inored for the sa,e of price.

"EB mar,et are committed to ro- enineered steel buildins business in ndia

b+ offerin inno/ati/e enineered solutions to meet customer needs. Short term

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plan is to build on construction capabilit+2 -hich is an area of constant challene

and e/olution as -e need to maintain and ad/ance the safet+ standards.

The medium and lonterm plans are actuall+ /er+ similar in terms of settin up

for controlled ro-th -ithin the mar,et2 to e0pand capabilities2 build on brandname and be able to e0pand footprint -ithin ndia2 and outside as -ell.

The pri/ate equit+ arm of 8uture =apital ?oldins 1td (8=?)2 ndi/ision

n/estment Ad/isors 1td2 had in/ested Rs## crore in nterarch Buildin

"roducts "/t. 1td2 pic,in up a @H sta,e. 8uture =apital is part of the 8uture

Group2 -hich is ,no-n for its flaship public compan+ "antaloon Retail (ndia)1td. ts parent2 8=?2 recentl+ applied for its o-n initial public offerin ("9) -ith

the Securities and E0chane Board of ndia (SEB)2 and is in a silent period.

nterarch manufactures metal buildin s+stems2 and has -or,ed on Tata Motors

1tdIs Sinur factor+2 echoupals and a "une ciarette plant for di/ersified

conlomerate T= 1td2 and petrol pumps for Reliance ndustries 1td.The

compan+ currentl+ has sites in Rudrapur2=hennai and Greater 4oida. t had

e0pected its turno/erOan estimated Rs ## crore 2 to ro- to Rs2## crore

o/er three +ears because of the e0pansion. This in/estment is nterarchIs first

step to-ards listin on the bourses. The pri/ate equit+ arm -as chosen as the

in/estor because there -ould be a Fbetter perception for an "9 -ith ndi/ision

as our partner.

ndi/ision also has in/estments in ci/il enineerin construction contractors B.E.

Billimoria =ompan+ 1td and a relationship -ith real estate de/eloper Lnitech

Group.

ith a sle- of pro;ect bein announced in Gu;arat2 preenineered buildin

pla+er nterarch Buildin "roducts"/t. 1td. is e+ein e0pansion of business in

the state.

?a/in baed se/eral ne- pro;ects includin the li,es of 9s-al

ndustries1imited and ABB 1imited in Ahmedabad and 7adodara2 the compan+ is

[16]
http://www.business-standard.com/search?type=news&q=Interarch+Building+Productshttp://www.business-standard.com/search?type=news&q=Oswal+Industrieshttp://www.business-standard.com/search?type=news&q=Oswal+Industrieshttp://www.business-standard.com/search?type=news&q=Interarch+Building+Productshttp://www.business-standard.com/search?type=news&q=Oswal+Industrieshttp://www.business-standard.com/search?type=news&q=Oswal+Industries


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loo,in at pro;ect /alue -orth Rs # crore in Gu;arat. So far nterarch ha/e

alread+ e0ecuted >@ pro;ects in Gu;arat includin > in =entral Gu;arat2 & in

!utch2 > in Saurashtra and &$ in South Gu;arat since #&. ?o-e/er2 -ith ne-

pro;ects bein baed b+ nterarch in Gu;arat2 the compan+ is loo,in at a ro-th

of per cent in terms of turno/er in the state.

n Gu;arat2 nterarch has been pro/idin preenineered buildin ser/ices on a

turn,e+ basis to companies in sectors ranin from automoti/e2 industrial2

loistics and -arehousin2 and onroad retailin to port infrastructure2 po-er

plants and ad/anced steel construction solutions for ma;or infrastructure pro;ects.

Pn terms of percentae2 Gu;arat is currentl+ contributin around '% per cent of

the o/erall business. 4o- that -e ha/e a reional office here in Ahmedabad and

ta,in into account the current ro-th prospects in Gu;arat2 -e -ould be

taretin around #& per cent of re/enues from this state in the current fiscal

+ear. Moreo/er2 -e e0pect it to et increased to about consistent per cent

o/er the ne0t @ +ears.P

Amon clients in Gu;arat2 nterarch has been ser/in the li,es of General Motors2

=aparo Maruti 1td2 Am/ian Automoti/e "/t. 1td2 Sha+bur 7al/es "/t 1imited and

Esteem Auto "/t 1td. in the auto sector. The compan+ has also -or,ed

e0tensi/el+ in manufacturin sector for companies li,e Garima Global "/t 1td2

E/erest !anto =+linders 1td.2 Asian Granito ndia 1imited2 S!8 Technoloies

ndia 1td2 "oenAmp 4aarsheth "o-ertronics 1td2 Time Technoplast 1td2

?4G 8loat Glass 1td2 and Apple nternational in Gu;arat. Phen it comes to

po-er2 nterarch has -or,ed -ith 7oith Siemens 1td2 elspun =orp 1imited2

Gu;arat ndustries "o-er =ompan+ 1td et al. E/en in te0tile sector also2 it has

-or,ed for Sto/ec ndustries 1td.2

The compan+Qs turno/er for the financial +ear &@2 based on current order

boo,2 is about Rs ## crore2 ro-in at # per cent annuall+.

[17]


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=orporate dentification 4umber L'3$%@"T=#*#&$

4ame4TERAR=? BL154G

"R95L=TS "R7ATE 1MTE5

Ro= Ro=5elhi

Reistration 4umber *#&$

=ompan+ =ateor+ =ompan+ limited b+ shares

=ompan+ Sub =ateor+ ndian 4onGo/ernment =ompan+

=lass of =ompan+ "ri/ate =ompan+

Authorised =apital (in Rs.) ##2###2###

"aid up capital (in Rs.) *2##@2###

4umber of Members(Applicable onl+

in case of compan+ -ithout Share

=apital)

#

5ate of ncorporation @# 4o/ember $%@

Address 8arm 4o.%2 !hasara 4o. >


19/103

"in ##'*

hether listed or not Lnlisted

5ate of 1ast Annual General Meetin @# September @

5ate of Balance sheet @ March @

=ompan+ Status (for e8ilin) Acti/e

[19]


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[20]


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BO"R, O4 ,IRECTOR+

Mr. Ar/ind 4anda is the =E9 and 8ounder

5irector of nterarch2 a ##crore2 S9 $##:$$' =ompan+. Mr. Ar/ind has

built nterarch2 alon -ith his partner from a &emplo+ee compan+ to a compan+

-ith o/er '## people spread across ndia -ith manufacturin facilities in 4oida2

Lttara,hand and =hennai. ?e e0ercises stron manaement s,ills and has

e0pertise in s+stems and finance issues. ?e has been successfull+ practicin

effecti/e emplo+ee manaement abilities for the past @# +ears.

Ar/ind is a product of Modern School2 4e- 5elhi and he raduated from Shri

Ram =ollee of =ommerce. ?e -ent on to do his =hartered Accountanc+ from

L! and has -or,ed in L! and ndia before startin nterarch in $%'.

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Mr.Gautam Suri is the "romoter and 8ounder

5irector of nterarch Buildin "roducts "ri/ate 1td2a ##crore2 S9 $##:$$'

=ompan+2 -ith o/er '## permanent emplo+ees. nterarch-as launched b+ him

and Mr.Ar/ind in $%' and toda+ the compan+ has emered as a pioneerin pre

enineered metal buildin s+stems manufacturer facilities in Greater 4oida (L")2

"antnaar and !icha (Lttra,hand) and =hennai.

ith his professional enineerin bac,round 2 Mr.Gautam has led nterarchto

become a leadin ser/ice and solution pro/ider in steel construction. The

compan+ has ro-n to become the larest metal buildin products manufacturer

in the countr+. The companies clients list includes Tata Motors2 Reliance

ndustries2 General Motors2 Ba;a;2 ?+undai2 8iat and ?onda.

Apart from spearheadin operations at nterarch2 Gautam has also been a

consultin enineer for the last @ +ears and has desined acoustics facilities for

o/er # pro;ects includin se/eral prestiious buildins includin Vi*yan

Bha;an< India #abitat Centre< ,elhi Vidhan +abha< ,elhi "irport ,I".!part * ($%*). The materials are incombustible as per BS '*>part '

($*#) and satisf+ =lass 9 as per BS '*>part > ($%$).

Turnkey Proect /ana*ement

nterarchpro;ects operate -ith a team of dedicated professionals -or,in at/arious locations all o/er ndia. nterarch is ndiaIs onl+ pro/ider of turn,e+ pre

enineered metal buildin s+stems2 offerin a onestopshop for all pro;ects.

Each pro;ect is completed -ithin time and cost tarets usin the hihest qualit+

and safet+ standards follo-ed internationall+.

Turn,e+ pro;ect e0ecution impro/es clientcontractor coordination and interface

-ith other site contractors2 and allo-s nterarch to be the preferred bidder for

e0ecutin lare pro;ects as compared to an+ other compan+ in the mar,et.

"ro;ect Manaement at nterarch

Sinlepoint contract responsibilit+.

=entrali6ed loistics control.

=entrali6ed site manaement and pro;ect control.

?ihest standards in qualit+. Trained qualit+ teams loo, after and

continuousl+ monitor pro;ects -hile the+ are under e0ecution.

Deroaccident polic+. nterarchIs strinent ?SE reulations do not permit

opportunities for accidents at our pro;ect sites. Trained safet+ teams operate pan

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ndia at all nterarch pro;ect sites2 ensurin on round safet+ as -ell as safet+ in

e0ecution.

S,ills E0pertise

nfrastructure "ro;ects

n our pursuit for e0cellence in structural steel buildin solutions2 nterarch caters

speciall+ to infrastructure pro;ects usin its /ast e0perience in desin2

manufacturin and production of structural s+stems.

The nfrastructure 5i/isionIs lines of e0pertise:

1are and comple0 infrastructure pro;ects

orldclass airport terminals

Sea port infrastructure facilities

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.o*istics ,elivery

9/er the +ears2 nterarchhas successfull+ retained2 trained and de/eloped a

dedicated team of loistic partners. The+ are carefull+ selected based on their

o/erall capabilities that include /ehicle fleet and support net-or,. ualit+ of

trailers and transport /ehicles is chec,ed prior to e/er+ dispatch to ensure timel+

deli/er+ -ith minimum transit time. =ustomers are updated -ith the trac,in of

/ehicles in transit throuh dail+ emails. This is facilitated b+ a reular interaction

of trac,in office and the /ehicle dri/ers -ith the help of mobile phones and

/ehicle trac,in s+stems.

nterarchhas a nation-ide net-or, of distributors and builders assurin local

professional support. 5eli/er+ of materials in ood condition is also ensured b+

the use of the loistic partner net-or,. All consinments are insured durin

transit.

CustomiDed Value "ddition

9fferin no less than the best2nterarchpreenineered metal buildinsolutionsare customi6ed to the needs of each pro;ect requirement2 be it lare or

small and cater especiall+ to the follo-in t+pes of construction:

Suited to lare span buildin construction.

Modular desin and buildins that are e0pandable e/en after completion.

ualit+ manufacturin and construction.

Ener+ efficient reen buildins.

uic, installation of comple0 structures usin simple NboltonI construction. Architectural /ersatilit+.

deal for fast paced pro;ects.

Automoti/e factories.

Retail outlets and shoppin malls.

Auditoriums and con/ention halls.

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Multistore+ office buildins.

ndustrial sheds and -arehouses.

"etroleum outlets.

1iht aue buildins.

Airport terminal buildins.

idebod+ aircraft hanars.

ndia has the second fastest ro-in econom+ in the -orld and a lot of it2 is

attributed to its construction industr+ -hich fiures ;ust ne0t to ariculture in its

economic contribution to the nation. n its steadfast de/elopment2 theconstruction industr+ has disco/ered2 in/ented and de/eloped a number of

technoloies2 s+stems and products one of them bein the concept of "re

enineered Buildins ("EBs). As opposed to bein onsite fabricated2 "EBs are

deli/ered as a complete finished product to the site from a sinle supplier -ith a

basic structural steel frame-or, -ith attached factor+ finished claddin and

roofin components. The structure is erected on the site b+ boltin the /arious

buildin components toether as per specifications. "EBs are de/eloped usin

potential desin soft-are. The onset of technoloical ad/ancement enablin @d

modellin and detailin of the proposed structure and coordination has

re/olutionised con/entional buildin construction.

"EBs ha/e hit the construction

mar,et in a ma;or -a+ o-in to the man+ benefits the+ possess. The+ e0emplif+

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the risin lobal construction2 technolo+ and -hile the+ oppose the practice of

con/entional buildin construction the+ simultaneousl+ ha/e ta,en it to a hiher

le/el too. orld-ide2 the+ are a much used concept -ith studies re/ealin that

>#H of the nonresidential lo-rise buildin in LSA are preenineered for ndia

the concept has been ainin momentum and the scope of ro-th is uaranteed

loo,in at ndiaQs hue infrastructural requirements. Studies alread+ /alidate that

ndia has the fastest ro-in mar,et in the "EB construction sement. The

scope of usin "EBs ranes from sho-rooms2 lo- heiht commercial

comple0es2 industrial buildin and -or,shops2 stadiums2 schools2 brides2 fuel

stations to aircraft haners2 e0hibition centres2 rail-a+ stations and metro

applications. hile -e are still to see "EBs bein used in residences in ndia2

one can see their optimal use in -arehouses2 industrial sheds2 sports facilities

etc. The 5elhi Airport and the metro pro;ects of 5elhi2 Benaluru and Mumbai are

also e0amples of "EB applications.

nterarch Buildin "roducts "/t 1td -ith headquarter in 4oida is ndiaQs leadin

turn,e+ preenineered metal buildin compan+ and has m+riad construction

solutions includin ad/anced "reenineered Steel Buildins. Specialisin in

airport roofin and ceilins for o/er t-o decades2 one of their co/eted pro;ects is

5A1 Terminal @ (Terminal @2 G Airport at 5elhi) -ith a se/enla+er roof installedo/er &2##2###sqm roof area co/erin the entire airport. 9n the absence of "EBQs

in the residential sector in ndia. Pn ndia2 modular construction is still the

preferred choice o/er "EB s+stems for the residential sector -hich is mostl+ due

to lac, of a-areness about the benefits of "EB -ith the eneral perception bein

that the+ are e0pensi/e. ?a/in said that2 -ould also li,e to mention that the

"EB industr+ is slo-l+ and steadil+ ainin its hold in the commercial


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T"T" motors at Pantna*ar Picture courtesy> Interarch Buildin* Products

Pvt .td!

The "EB industr+ has e/ol/ed o/er the +ears. hat started as a role limited todesin and manufacturin "EBs2 has -idened toda+ to ma,in firms responsible

for the erection of the structures too. =itin facts2 The "EB mar,et estimation in

ndia to be around Rs.'2### crores currentl+. Pt has been ro-in at o/er H

for the last fe- +ears2 and is e0pected to demonstrate a similar2 if not better

ro-th in the +ears to comeP.

A "EB s+stem in totalit+ consists of a structural s+stem2 sand-ich panels2

roofin2 e0terior facade and accessories. The "EB concept based on a proper

desin usuall+ in/ol/es a thorouh pro;ect information data includin complete

details li,e buildin parameters2 rade of steel2 secondar+ member details2 paint

coat on steel members2 -eldin2 anchor bolts steel rade2 roof -all liner ):

Manae 9perations2

Monitor 8acilit+ condition and S+stems2

E/aluate =onditions and 5etect "roblems2

5e/elop Solutions2

Select "lan of Action2 and

mplement "lan.

The Inte*rated Business Process modeldefines and described the process of

facilit+ pro/ision. This process is di/ided into fi/e sub processes co/erin the

entire life c+cle of the facilit+ from initial conception throuh final demolition. The

fi/e sub processes are manae2 plan2 desin2 construct2 and operate the facilit+.

The principal function into -hich nterarch directs much of its time and efforts is

the desin and manufacturin of their products. nterarch desin process is

hihl+ computeri6ed and interated manufacturin practices as roup technolo+

and numericall+ controlled equipment.

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RE+E"RC# /ET#O,O.O-:

Primary ,ata

Primary researchconsists of a collection of oriinal primar+ data collected b+the researcher. t is often underta,en after the researcher has ained some

insiht into the issue b+ re/ie-in secondar+ research or b+ anal+6in pre/iousl+

collected primar+ data.t can be accomplished throuh /arious methods2

includin questionnaires and telephone inter/ie-s in mar,et research2

or e0perimentsand direct obser/ationsin the ph+sical sciences2 amonst others.

The term primar+ research is -idel+ used in academic research2 mar,et

researchand competiti/e intellience. n the follo-in +ummer Internship

Proect ha/e conducted a primar+ research on 8inancial Anal+sis of nterarch

Buildins "roducts "/t 1td andrepresented the financial condition of this

compan+.

There are ad/antaes and disad/antaes to primar+ research.

"dvanta*es:

Researcher can focus on both qualitati/e and quantitati/e issues.

Addresses specific research issues as the researcher controls the search

desin to fit their needs

Great control not onl+ does primar+ research enable the mar,eter to

focus on specific sub;ects2 it also enables the researcher to ha/e a hiher

control o/er ho- the information is collected. Ta,in this into account2 theresearcher can decide on such requirements as si6e of pro;ect2 time frame

and oal.

,isadvanta*es:

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=ompared to secondar+ research2 primar+ data ma+ be /er+ e0pensi/e in

preparin and carr+in out the research. =osts can be incurred in producin

the paper for questionnaires or the equipment for an e0periment of some sort.

n order to be done properl+2 primar+ data collection requires thede/elopment and e0ecution of a research plan. t ta,es loner to underta,e

primar+ research than to acquire secondar+ data.

Some research pro;ects2 -hile potentiall+ offerin information that could

pro/e quite /aluable2 ma+ not be -ithin the reach of a researcher.

B+ the time the research is complete it ma+ be out of date.

1o- response rate has to be e0pected.

+econdary ,ata

+econdary research(also ,no-n as des, research) in/ol/es the summar+2

collation and


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Sometimes secondar+ research is required in the preliminar+ staes of research

to determine -hat is ,no-n alread+ and -hat ne- data is required2 or to inform

research desin. At other times2 it ma+ be the onl+ research technique used.

A ,e+ performance area in secondar+ research is the full citation of oriinalsources2 usuall+ in the form of a complete listin or annotated listin.

Secondar+ sources could include pre/ious research reports2 ne-spaper2

maa6ine and ;ournal content2 and o/ernment and 4G9 statistics.

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Depreciation; 1.26Finance Cost; 0.43Cost of Erection of Builiding; 6.76

Retained ro!t; 0.13

"rading urc#ases; 37.4

E$plo%ee Bene!t E&penses; '.4'

Ra( $aterial Consu$ed; 3).26

Di*idend Recd. Fro$ Current +n*est$ent,+nco$e-; 0.03iscellaneous E&penses; 6.2

s of Total Expenditure on Total Earning During 20

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,etailed 4inancial "nalysis

.i7uidity "nalysis

.i7uidity ratiosmeasure a compan+Is abilit+ to meet its maturin shorttermobliations. n other -ords2 can a compan+ quic,l+ con/ert its assets to cash

-ithout a loss in /alue if necessar+ to meet its shortterm obliationsU 8a/orable

liquidit+ ratios are critical to a compan+ and its creditors -ithin a business or

industr+ that does not pro/ide a stead+ and predictable cash flo-. The+ are also

a ,e+ predictor of a compan+Is abilit+ to ma,e timel+ pa+ments to creditors and

to continue to meet obliations to lenders -hen faced -ith an unforeseen e/ent .

Current Ratio

Current "ssets 8 Current .iabilities

This ratio reflects the number of times shortterm assets co/er shortterm

liabilities and is a fairl+ accurate indication of a compan+Qs abilit+ to ser/ice its

current obliations. A hiher number is preferred because it indicates a stron

abilit+ to ser/ice shortterm obliations. The composition of current assets is a

,e+ factor in the e/aluation of this ratio. 5ependin on the t+pe of business or

industr+2 current assets ma+ include slo-mo/in in/entories that could

potentiall+ affect anal+sis of a compan+Qs liquidit+ ho- lon could it potentiall+

ta,e to con/ert ra- materials and in/entor+ into finished productsU (8or this

reason2 the quic, ratio ma+ be preferable to the current ratio because it

eliminates in/entor+ and prepaid e0penses from this ratio for a more accurate

aue of a compan+Qs liquidit+ and abilit+ to meet shortterm obliations.)

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Fuick Ratio

Cash G /arketable +ecurities G Trade "ccounts Receivable! 8 Current

.iabilities

This ratio2 also ,no-n as the acid test ratio2 measures immediate liquidit+ the

number of times cash2 accounts recei/able2 and mar,etable securities co/er

shortterm obliations. A hiher number is preferred because it suests a

compan+ has a stron abilit+ to ser/ice shortterm obliations. This ratio is a

more reliable /ariation of the =urrent ratio because in/entor+2 prepaid e0penses2

and other less liquid current assets are remo/ed from the calculation.

Current ratio /uic ratio0

0.

1

1.

2

2.

1.94

1.11

2

1.0)

2.23

1.27

Current Ratio / Qui! ratio

2011 2012 2013

The current ratio for nterarch Buildin "roducts is &.&2 -hich compared to the

baseline of &.# indicates the compan+Qs abilit+ to ser/ice shortterm obliations is

satisfactor+. ?o-e/er the /alue of the quic, ratio -ill pro/ide a clearer indication

of the compan+Qs success in this area.

The quic, ratio for nterarch Buildins "roduct is .&*2 -hich compared to the

baseline of .#* indicates the compan+Qs abilit+ to ser/ice shortterm obliations

is fa/ourable.

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"ltman H score " Pvt /anu)acturin* 4irm!

1orkin* Capital 8 Total "ssets! %6&! G Retained Earnin*s 8 Total

assets! %6K@! GEarnin*s be)ore Interest and Ta=es8 Total "ssets! ?6&%!

G Total E7uity 8 Total .iabilities %6@$! G+ales 8 Total "ssets! %6LLK!

This ratio represents a numerical ran,in that predicts the potential for

ban,ruptc+ of a manufacturin compan+. n eneral2 the lo-er the score2 the

hiher the odds of ban,ruptc+. =ompanies -ith DScores abo/e @ are considered

to be health+ and therefore unli,el+ to enter ban,ruptc+.

2012 20132.2

2.3

2.3

2.4

2.4

2.

2.

2.6

2.6 2.61

2.3)

"lt#an $ %ore

core,in -

The Altman D score for nterarch Buildins is &.@% that indicates the compan+ has

a relati/el+ satisfactor+ deree of protection aainst ban,ruptc+.

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"ccounts Receivable to 1orkin* Capital

Trade "ccounts Receivable 8Current "ssets ' Current .iabilities!

This ratio measures the dependenc+ of -or,in capital on the collection of

recei/ables. A lo-er number for this ratio is preferred2 indicatin that a compan+

has a satisfactor+ le/el of -or,in capital and accounts recei/able ma,es up an

appropriate portion of current assets.

2012 20130.7

0.7

0.71

0.71

0.71

0.71

0.71

0.72 0.72

0.71

"ounts Reei(a)le to *or!ing Capital

Ratio core

The accounts recei/able to -or,in capital ratio for nterarch Buildins is #.*#2

-hich compared to the baseline of #.* indicates that the compan+Qs

performance is sufficient in this area.

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.on* Term .iabilities to 1orkin* Capital

.on* Term .iabilities 8 Current "ssets ' Current .iabilities!

This ratio measures the deree to -hich a compan+Qs lonterm debt has been

used to replenish -or,in capital /ersus fi0ed asset acquisition.

2012 20130

0

0

0.01

0.01

0.01

0.01

0.01 0.01

0.01

,ong Ter# ,ia)ilities to *or!ing Capital

Ratio Score

The lonterm liabilities to -or,in capital ratio for nterarch Buildins "roduct "/t

ltd. is #.#2 -hich compared to the baseline of #.#' indicates the /alue of this

ratio is meetin the compan+Qs e0pectations. The chane in the ratio score

bet-een both financial +ear is minute 2 this firm onl+ has /ehicle loans as lon

term liabilities thus compan+ possess a ood condition.

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+ales to 1orkin* Capital

+ales 8 Current "ssets ' Current .iabilities!

This ratio measures a compan+Qs abilit+ to finance current operations. or,in

capital (current assets current liabilities) is another measure of liquidit+ and the

abilit+ to co/er shortterm obliations. This ratio relates the abilit+ of a compan+

to enerate sales usin its -or,in capital to determine ho- efficientl+ -or,in

capital is bein used. n eneral2 a lo-er number is preferred because it indicates

a compan+ has a satisfactor+ le/el of -or,in capital.

2012 20133.)

3.'

4

4.1

4.2

4.3

4.4

4.

4.0

4.

%ales to *or!ing Capital

Ratio core

The sales to -or,in capital ratio for nterarch Buildins "roducts "/t 1td. is '.#2

-hich compared to the baseline of '.# re/eals the compan+Is ro-th thouh

e0ceptionall+ lo- score indicates inadequate sales le/el are bein enerated.

The compan+ ma+ -ant to ma,e an effort to enerate additional sales usin the

a/ailable opportunities.

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,ays +ales in Receivables

Trade "ccounts Receivable 8 +ales 8 ,ays!

This ratio measures the a/erae number of da+s a compan+Qs recei/ables areoutstandin. A lo-er number of da+s is desired. An increase in the number of

da+s recei/ables are outstandin indicates an increased possibilit+ of late

pa+ment b+ customers. =ompanies should attempt to reduce the number of da+s

sales in recei/ables in order to increase cash flo-. The eneral rule used is that

the time allo-ed for pa+ment b+ the sellin terms should not be e0ceeded b+

more than # or da+s.

2012 20132

4

6

)60

62

64

6664.46

7.3)

Da's %ales in Reei(a)les

Da%s

The da+s sales in recei/ables for nterarch Buildins "roducts is * da+s that

indicates the compan+ is not /er+ effecti/e in collectin outstandin recei/ables.

This is due to retention mone+ -hich oftenl+ clients holds -hile ma,in the

pa+ment for pro;ects .

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Operatin* Cycle ,ays

Inventory 8 Cost o) +ales 8 ,ays!! G Trade "ccounts Receivable 8 +ales 8

,ays!!

This ratio calculates the total con/ersion period for a compan+2 or in other -ords2

the a/erae number of da+s it ta,es to con/ert in/entor+ into cash from sales. t

is calculated b+ addin toether the da+s cost of sales in in/entor+ to the da+s

sales in recei/ables. E/aluatin this ratio can be helpful in auin the

effecti/eness of mar,etin2 determinin credit terms to e0tend to customers2 and

collectin outstandin accounts.

2012 20130

0

100

10

200

1'

1)

perating C'le Da's

Da's

The operatin c+cle da+s for nterarch Buildins "roducts is % da+s2 -hich

compared to the baseline of $ da+s indicates the compan+ ma+ not besuccessfull+ minimi6in the amount of time it ta,es to con/ert products and

ser/ices into cash. Thouh there is a bi time ro-th in this firm.

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OPER"TIN- C:C.E

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+ales to "ssets

+ales 8 Total "ssets

This ratio measures a compan+Qs abilit+ to produce sales in relation to total

assets to determine the effecti/eness of the compan+Qs asset base in producin

sales. A hiher number is preferred2 indicatin that a compan+ is usin its assets

to successfull+ enerate sales. This ratio does not ta,e into account the

depreciation methods emplo+ed b+ each compan+ and should not be the onl+

measure of effecti/eness of a compan+ in this area.

2012 20131.3

1.3

1.4

1.4

1.

1.

1.6

1.6

1.42

1.61

Ratio core

Sales to assets for ntearch Buildins "roducts is .>#2 -hich compared to the

baseline of .' indicates the compan+Qs performance in this area is lac,in and

manaement should consider ta,in measures to impro/e this ratio.

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Percent ,epreciation E=pense to Net 4i=ed "ssets

,epreciation E=pense 8 Net 4i=ed "ssets &%%

This ratio measures the reasonableness and consistenc+ of a compan+Qs

depreciation e0pense o/er time.

2012 20130.11

0.12

0.12

0.12

0.12

0.12

0.13

0.13

0.13

0.13

0.12

Ratio core

The percent depreciation e0pense to fi0ed assets for nterarch Buildins "/t 1td.

s #.&H2 -hich compared to the baseline of #.@H indicates the /alue of this

ratio is meetin the compan+Qs e0pectations.A hih depreciation tofi0ed assets ratioma+ suest that a business is -ritin

off old equipment to ma,e -a+ for ne-er ones. A hih ratio ma+ suest that the

present fi0ed assets ha/e a short useful life and2 therefore2 need to be replaced

quic,l+.

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Percent "ccumulated ,epreciation to 4i=ed "ssets

"ccumulated ,epreciation 8 4i=ed "ssets &%%

This ratio measures the cumulati/e percentae of producti/e asset costs a

compan+ has allocated to operations.

2012 20130.3)

0.3'

0.3'

0.4

0.4

0.41

0.41

0.3'

0.41

. "u#ulated Depn to /ixed "ssets

+n

The percent accumulated depreciation to fi0ed assets for nterarch Buildins "/t

ltd is #.'H2 -hich compared to the baseline of #.@$H indicates this ratio ma+ be

on taret -ith compan+ ob;ecti/es. 1o- ratios are desirable2 -hile an increase

to this ratio o/er time can be indicati/e of a problem.f the ratio increases o/er

time and is hih relati/e to its peers2 the compan+ ma+ ha/e trouble eneratin

enouh cash to purchase ne- equipment. f true2 the compan+Qs maintenance

e0pense to fi0ed assets ratio should be anal+6ed to see if itQs declinin o/er time.

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4i=ed "ssets to E7uity

4i=ed "ssets ' "ccumulated ,epreciation! 8 Total E7uity

This ratio measures the e0tent to -hich in/estorsQ capital -as used to finance

producti/e assets. A lo-er ratio indicates a proportionall+ smaller in/estment in

fi0ed assets in relation to net -orth2 -hich is desired b+ creditors in case of

liquidation. 4ote that this ratio could appear decepti/el+ lo- if a sinificant

number of a compan+Qs fi0ed assets are leased.

2012 20130.3

0.36

0.36

0.36

0.36

0.36

0.37

0.37

0.37

0.36

0.37

ixed "ssets to Euit'

Ratio core

4et fi0ed assets to equit+ for nterarch Buildins "/t 1td. is #.@*2 -hich compared

to the baseline of #.@> indicates the compan+Qs performance is adequate in

this area.

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Inventory Turnover

+ales 8Inventory

A ratio sho-in ho- man+ times a compan+Qs in/entor+ is sold and replaced o/er

a period. A lo- turno/er implies poor sales and2 therefore2 e0cess in/entor+. A

hih ratio implies either stron sales or ineffecti/e bu+in.

2012 20130

1

2

3

4

6

4.3'

.77

+n(entor' Turno(er Ratio

Ratio core

The n/entor+ turno/er ratio for nterarch Buildins "roducts is .**2 -hich

compared to the baseline of '.@$H. n eneral2 =ompanies sellin perishable

items ha/e /er+ hih turno/er. But this compan+ sells non perishable products

-hich doesnIt tend to deteriorate o/er time so this compan+ can ,eep theirproducts in -arehouse for lon time.

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"vera*e ra; /aterials #oldin*s

Ra; material stock8 Cost o) production or Cost o) -oods Consumed ?(

This ratio calculates the lenth of time ra- materials is held bet-een purchase

and sale.

2012 20137

)0

)

'0

'

100'7.1)

)3.16

"(erage ra aterials oldings

Ratio core

The A/erae Ra- materials holdins for nterarch Buildins "roducts is %@.>2

-hich compared to the baseline of $*.% .8or Ra- materials holdin period

ratios2 a lo- ratio is usuall+ seen as a sin of ood -or,in capital manaement.

t is /er+ e0pensi/e to hold in/entor+ and thus minimum in/entor+ holdin usuall+

points to ood practice. n 8C @ the ra- material holdin period seems to be

decreasin -hich indicates ood in/entor+ manaement -ithin the firm.

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Operatin* Cash 4lo; 8+ales Ratio

Operatin* cash )lo; 8 +ales Ratio M Operatin* Cash 4lo;s 8 +ales Revenue

= &%%

This ratio2 -hich is e0pressed as a percentae2 compares a compan+Qs operatin

cash flo-to its net salesor re/enues2 -hich i/es in/estors an idea of the

compan+Qs abilit+ to turn sales into cash.

t -ould be -orrisome to see a compan+Qs sales ro- -ithout a parallel ro-th in

operatin cash flo-. "ositi/e and neati/e chanes in a compan+Qs terms of sale

and


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Percent Rate o) Return on "ssets

Net Income a)ter ta=8 Total "ssets &%%

This ratio measures ho- effecti/el+ a compan+Qs assets are bein used to

enerate profits. t is one of the most important ratios -hen e/aluatin the

success of a business. A hiher number reflects a -ell manaed compan+ -ith a

health+ return on assets. ?ea/il+ depreciated assets2 a lare number of

intanible assets2 or an+ unusual income or e0penses can easil+ distort this

calculation.

2012 20130

0.01

0.02

0.03

0.04

0.0

0.06

0.070.0) 0.0)

0

Rate of Return on "ssets

+

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The 9peratin "rofit "er Share for nterarch Buildins "roducts is *.'*2 -hich

compared to the baseline of '#'.* indicates manaement ma+ not be effecti/el+

manain the profits earned based on the o-ners in/estment in the

compan+.

Return On Capital Employed ROCE!

Earnin*s Be)ore Interest and Ta= EBIT! 8 +hareholders 4unds

A financial ratio that measures a compan+Qs profitabilit+ and the efficienc+ -ith

-hich its capital is emplo+ed.

A hiher R9=E indicates more efficient use of

capital. R9=E should be hiher than the compan+Is capital cost other-ise it

indicates that the compan+ is not emplo+in its capital effecti/el+ and is not

eneratin shareholder /alue.

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2012 20130

0.02

0.04

0.06

0.0)

0.1

0.120.14

0.16

0.1) 0.17

0.03

Return on Capital E#plo'ed

+

The percent rate of return on =apital Emplo+ed for nterarch Buildins "roducts

is #.#@2 -hich compared to the baseline of #.* indicates manaement ma+ not

be effecti/el+ manain the profits earned based on the o-ners in/estment in

the compan+. R9=E is a useful metric for comparin profitabilit+ across

companies based on the amount of capital the+ use.

Percent Rate o) Return on E7uity

Earnin* a)ter ta= 8 Total E7uity &%%

This ratio e0presses the rate of return on equit+ capital emplo+ed and measures

the abilit+ of a compan+Qs manaement to reali6e an adequate return on the

capital in/ested b+ the o-ners in a compan+. A hiher number is preferred for

this commonl+ anal+6ed ratio.

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1enders e/aluate co/erae ratios to determine the deree to -hich a compan+

could become /ulnerable -hen faced -ith economic do-nturns. A compan+ -ith

a hih le/el of debt poses a hiher ris, to lonterm creditors and in/estors.

,ebt to Total "ssets

Total .iabilities 8 Total "ssets

This ratio measures -hat proportion of debt a compan+ is carr+in relati/e to its

assets. A ratio /alue reater than one indicates a compan+ has more debt than

assets. 4aturall+2 companies and creditors prefer a lo-er number.

2012 20130

0.01

0.01

0.02

0.02

0.03

0.01

0.03De)t to Total "ssets

+

The percent rate of return on equit+ for nterarch Buildins "roducts is #.H2

-hich compared to the baseline of &.&H indicates manaement is effecti/el+

manain the debts aainst the total assets.9ne shortcomin of the total debt to

total assets ratio is that it does not pro/ide an+ indication of asset qualit+2 since it

lumps all tanible and intanible assets toether.

,ebt E7uity ratio

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A /ariation of the traditional debttoequit+ ratio2 this /alue computes the

proportion of a compan+Qs lonterm debt compared to its a/ailable capital. B+

usin this ratio2 in/estors can identif+ the amount of le/erae utili6ed b+ a

specific compan+ and compare it to others to help anal+6e the compan+Qs ris,

e0posure. Generall+2 companies that finance a reater portion of their capital /ia

debt are considered ris,ier than those -ith lo-er le/erae ratios.

2012 20130

0

0

0

0

0.01

0.01

0.01

0.01

0.01

0.01

,ong ter# De)t Euit' ratio

core,in -

The 5ebt Equit+ ratio for nterarch Buildins "roducts is #.##%2 -hich compared

to the baseline of #.## -hich is /er+ less because nterarch ha/e onl+ /ehicle

loans as lon term debt. This ratio Score indicates this compan+ is less ris,ier

ith no lon term obliations to-ards compan+Is capital.

,ebt +ervice Covera*e Ratio

Net operatin* income 8 Total ,ebt +ervices

n corporate finance2 it is the amount of cash flo- a/ailable to meet annual

interest and principal pa+ments on debt2 includin sin,in fund pa+ments.

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A 5S=R of less than -ould mean a neati/e cash flo-. A 5S=R of less than 2

sa+ .$2 -ould mean that there is onl+ enouh net operatin income to co/er

$H of annual debt pa+ments.

2012 20130

1

2

3

4

6

76.2'

1.'4

De)t Co(erage ratio

Ratio core

The 5ebt Ser/ice =o/erae ratio for nterarch Buildins "roducts is .$' 2 -hich

compared to the baseline of >.&$ .The fall in 5=SR in @ depicts that there is

an decrease in net operatin income.

Conclusion Recommendation

nterarch ha/e a lot of ad/antaes and some challenes that are bein

confronted successfull+. t is important to realise that in their case -hate/er can

be done in ad/ance should be done in ad/ance. Efforts should be made to[93]


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reduce the number of parts and material and use liht -eiht elements to sa/e

on the transportations costs. ?o-e/er2 the most important step is to increase the

a-areness amonst people so that there can be a shift from con/entional

structures to "EBs. nterarch is focusin on trainin and de/elopment of their

partners and /endors as -ell the industr+ is hopin to see a -ider application

of "EBs.

There is no doubt loo,in at the -a+ the population densit+ particularl+ in metro

cities2 hori6ontal construction has been put on restriction2 and comfortabl+ spread

out real estate is hard to find. 1ac, of space due to e0ponential rise in population

in urban areas has not onl+ i/en -a+ to taller buildins -ith more floors2 but also

stresses on the fact that the construction has to be faster. The use of steel in

hihrise buildins comes into /oue. ?ih rise buildins or multistore+

buildins2 built completel+ in steel or primaril+ -ith steel are a fairl+ limited in

ndia.

Buildin a hih rise or an+ multile/el buildin demands the use of liht-eiht

+et stron materials. Steel2 b+ /irtue of its hih strenth to -eiht ratio enableslare spans and liht -eiht construction. Steel structures can ha/e a /ariet+ of

structural forms li,e braced frames and moment resistant frames suitable to meet

the specific requirements of hiher buildins. Taller buildins also face hiher

-ind loads2 and hence steel bein fle0ible2 allo-s the buildin to mo/e and

deflect -ith the -ind forces2 rather than ma,in it riid li,e concrete.

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Buildin tall -ith steel also allo-s more floors per total heiht of the buildin. This

is due to the fact that the buildin structure in steel is lihter and more efficient2

and has beams and that are not required to be as deep as those of concrete to

support the floors. The abilit+ to ha/e lihter sections2 allo-in the same load

bearin capacit+ per floor. "reenineered steel s+stems2 that are our specialt+2

allo- further optimi6ation and further efficienc+ in steel buildin desin. 5el/in

into the mechanics of hih rise buildin construction2 -e see that the introduction

of hot rolled steel sections2 usin hiher rade steel add more strenth to the

buildin. Better steel dec,in as a construction material brouht about a

re/olution in the steel buildin space. =omposite steel dec,in laid on each floor

adds abilit+ to transfer lateral loads more effecti/el+ throuh the structure aidin

the structure to be stroner than con/entional riid materials. This added

strenth per floor allo-s the o/erall core steel structure to be lihter and e/en

more efficient. ?ihrise frames are constructed of ?columns or bo0 columns2

(/erticalsupport members) and ?beams (hori6ontalsupport members). =ross

bracin or shear -alls are used to pro/ide a structural frame -ith reater lateral

riidit+ in order to -ithstand -ind stresses.

Lse of steel ma,es it possible to create lare2 columnfree internal spaces thus2

these are particularl+ ad/antaeous for openplan offices and lare auditoriums

and concert halls. The steel frame -hen compared -ith R.=. frame results in

sufficient e0tra space to accommodate all ser/ice conduits -ithout sinificant

loss in head room.

Another sinificant aspect of preenineered steel buildins is that the+ are faster

to erect compared -ith reinforced concrete frames. The elements of frame-or,are premanufactured in the factor+ under effecti/e qualit+ control thus enablin a

better product. The connections for each part are built in and prepunched into

the members and hence preenineered desin reduces time2 onsite acti/ities2

materials and labor2 causin little disruption to normal life of the communit+2

unli,e -et concrete construction process.

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ettin its due credit as a fa/orable alternati/e construction methodolo+ in ndia

toda+. More sectors are reali6in the benefits of metal o/er bric, and mortar. The

scope of metal


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s+stem on floor to ma,e it /er+ liht but stroner than concrete floor2 cellular

beams for best ser/ice interation2 composite floor s+stem2 site accommodation2

site storae and site offices -ith /er+ liht structural steel. E0ecution time is

reduced b+ '#H o/er the con/entional buildins. The ne- buildins are desined

at rade *# steel2 -hich further reduces the -eiht. Since preenineered

buildin s+stem is automated -ith hih end desin soft-are li,e Te,la2 Autocad2

MBS to create a buildin for a specific use such as po-er plants2 -arehouses

industrial buildin2 airports2 etc2 it sets a ne- trend or inno/ation in the

infrastructure sector.P

=on/enience and impro/ement in desin2 finish and product rane are some of

the factors encourain pro;ects li,e residential buildins and shoppin malls to

induct the "EBs solution into the infrastructure. PAs the desins are finali6ed

throuh client discussions2 the final costs are -or,ed out and mutuall+ areed

upon. That rules out nast+ surprises mid-a+ construction. ith ma;or details

-or,ed out2 the client is also relie/ed of da+toda+ in/ol/ement at construction

stae. All these benefits come -ith a qualit+ assurance for the end product.P

Greenfield complaint

Steel2 the basic material of "EBs2 bein /er+ ecofriendl+2 allo-s an+ pro;ect hih

scores on Greenfield complianc+. 5esin optimi6ation ensures quantit+ of steel is

controlled2 and the hih tensile strenth of the material ma,es the structure liht.

=onsequentl+2 the foundation is more sustainable. Time sa/in2 clean

construction sites2 rec+clabilit+ -ith lo- maintenance and e0tended life c+cle of

the buildin are a ta,en. 8urther2 "EBs allo- dismantlin2 relocatin and

e0pansion if the need arises.

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The shortae of trained or s,illed -or,force at the construction stae is often a

stumblin bloc, to achie/e deli/er+ tarets and finish qualit+. =ompanies /+in to

maintain standards are forced to de/elop their o-n teams2 especiall+ at the

super/isor+ le/els to ensure customer satisfaction.

Acquisition of steel2 the primar+ ra- material2 often causes concern due to the

risin costs and discrepanc+ of ta0es. Ra- material costs are in up-ard trend

due to shortae of coal and iron ore. Go/ernment of ndia needs to consider

reducin the ta0 burden on these preenineered buildins in order to promote

this industr+ -hich has sinificant role in scalin up the infrastructure and also

enerate emplo+ment opportunities

n an unorani6ed sector2 the lac, of standards and codes lea/es the customer in

a quandar+. "resentl+2 unethical manufactures con/enientl+ tend to mi0 and

match codes for indi/idual buildin areas2 raisin doubts about the interit+ of

desin and the o/erall product. n de/eloped countr+ li,e LSA2 the enineers

en;o+ AS=


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nfrastructure toda+http:

voluntary retirement schemes provided by public sector banks

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