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

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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

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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

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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

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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.

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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
country’s 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

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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 Truck’s 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.

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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)

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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 India’s 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 Interarch’s
sustainable and ready-to-build products for industrial, commercial and residential
applications.
India’s growth is expected to improve in 2014. “India’s 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 India’s growth rate would increase to 6.4 per cent
in 2015. In 2012, India’s 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”.

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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 India’s 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, India’s strong fundamentals made her
one of the fastest growing economies in the world.

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Economic indicators show that growth in the PEB industry is expected to outpace
India’s 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.
Interarch’s 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.

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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 .Owner’s
today understand the value of early occupancy and hence initial acceptance for
PEB’s 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.

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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.
India’s 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, Interarch’s 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 turnover—an estimated Rs.500 crore, to grow to Rs.1100 crore over
three years because of the expansion. This investment is Interarch’s 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.

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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]

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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.

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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.

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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.

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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 India’s largest pre-engineered building companies.
 Interarch’s first manufacturing facility at Greater NOIDA, Uttar Pradesh is
one of India’s 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 customer’s
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 India’s 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. Interarch’s 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 Division’s 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. Interarch’s 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 building’s 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 facility’s functions
based in the user’s 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 owner’s 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
owner’s experience.
Design Facility
Design facility, as identified by the Integrated Business Process Model,
comprises all the functions to define and communicate the owner’s needs to the
builder. It is broken into the following six sub functions (D1 to D6):
 Understand Functional Requirements,
 Explore Concepts,
 Develop System’s 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 owner’s and society’s 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 industry’s
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 company’s 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 company’s 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 company’s 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
day’s 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 day’s 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 company’s 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 doesn’t 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 debtor’s
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 company’s 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 company’s 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 company’s ability to meet its long-term obligations,
remain solvent, and avoid bankruptcy. It measures how well a company’s 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 company’s 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