INSTITUTE OF MANAGEMENT STUDIES,

DAVV

SESSION- 2021-22

COMPANY – “VISAKA INDUSTRIES LIMITED”

3rd Internal Assignment

MBA FA (3rd Semester)

GUIDED BY- SUBMITTED BY-

Dr. Maneesh Kant Vanshika Jaiswal
Arya Sir 70520
“B”
 INDEX
S.NO TOPIC

1. Introduction

2. Future Plan

3. Financial statement
analysis

4. Capital Structure

5. Dividend Policy

6. Performance of the
Company

7. Conclusion
Visaka Industries limited

Visaka Industries Limited is engaged in the manufacture and sale of Cement

Asbestos Sheets, Fiber Cement Sheets (V-Boards), and Panels and Spinning
(Synthetic Spun Yarn). The Company offers products, including Cement Asbestos
Products, Fibre Cement Flat Board Products and Textiles. The Company's operating
segments include Building Products and Textile Synthetic Yarn. The Building
Products segment produces asbestos sheets and accessories used as roofing
material, and non-asbestos flat sheets and sandwich panels used as interiors. The
Textile Synthetic Yarn segment manufactures Yarn out of blends of polyester,
viscose and other materials, which go into the weaving of fabric. The Company
offers its products under the brands, such as Visaka and Shakti. The Company has
an installed capacity of approximately 802,000 tons per annum (TPA) of cement
asbestos products spread across over eight manufacturing facilities. It owns a yarn
spinning plant, which is capable of producing over 9,300 TPA .

THE VISAKA LEGACY

Founded by Dr G Vivekanand in 1983, Visaka Industries Limited has multiple

product portfolios, ranging from corrugated cement sheets and fibre cement
boards to hybrid solar roofs and human-made fibre yarn. Under his able
leadership, Visaka has been at the forefront, developing sustainable products
and meeting demands from domestic and international markets.

With its transformed product portfolio under Vnext, today Visaka enables
consultants, builders, architects, and applicators to emphasise sustainable
architecture and build the future. Our Vnext boards are designed to provide
strength and stability and fit seamlessly within the architecture, offering an
aesthetic solution. Vnext Premium Planks, a speciality grade product from
Visaka today has become the choice of many consultants, engineers, builders,
and contractors and has been tested to survive even in extreme outdoor
applications.r

Visaka also manufactures and is a global supplier of The Wonder Yarn, a

human-made spool that has carved a niche for various fabric applications across
garments, apparels, furnishings, automotive fabrics, and other technical textiles.
Visaka is famed for roofing the largest Muratec Twin Jet spun yarn technology
facility with its world-class manufacturing set up.

To address energy demands sustainably, Visaka has launched a path-breaking

hybrid roof-top solar product called ATUM – the first of its kind in India. With its
superior technological capabilities, ATUM is thermally efficient and generates
20% more revenue when compared to conventional solar panels. With its
unmatched durability, ATUM is the only renewable energy solution that is both,
a roof and solar panel, designed to meet consistent energy demands that you
can manage on your smartphone

With 12 manufacturing units, 13 marketing offices and a PAN India distribution

channel of over 7000 dealer outlets, Visaka Industries Limited has emerged a
sustainable business enterprise and a GreenPro Certified (IGBC) organisation.

Our corporate philosophy and business interactions helped us retain most of our
customers since its inception, signifying our commitment to all stakeholders. The
excellent corporate governance and professional management of its company
affairs have kept Visaka on a steady growth path. Consistent dividend payouts
to shareholders have been well-appreciated over the years.

Driven by values, Visaka Charitable Trust has been in operation to serve the
society, much before CSR regulations were declared.

History
Visaka Industries Ltd a joint sector company promoted by G V Kalavati G Vinod G
Vevekanad and APSIDC. The company was originally incorporated in the name of
Visaka Asbestos Cement Products in Jun 81 and acquired its present name in Aug
1990. The other group companies are Visaka Cement Industry Venus Tobacco
Company and VST Natural Products.VIL is engaged in the manufacture of fibre
cement products and synthetic blended yarn. It came out with a rights issue
aggregating Rs.5.07 cr.(29.85 lac equity shares at a premium of Rs 7) to part-finance
the Rs.23.07 crore expansion project at its existing synthetic yarn facility at
Nagpur.In May '95 VIL obtained ISO 9002 the Quality System Certificate from the
Bureau of Indian Standards for its textile division. In Nov'95 VIL came out with a
rights issue aggregating 289.59 lacs in Jan 1996. In the year 1997-98 Asbestos unit
at Paramathi Velur in Tamil Nadu commenced commercial production.To bring about
synergy in its operations the company is now negotiating a strategic investment
alliance with M/s Shakti Roofing Pvt Ltd a company producing asbestos cement
products with an installed capacity of 36000 MTPA.
  Visaka Industries, established in 1985, is engaged in two attractive
businesses. Building products - cement asbestos products and fibre cement
flat products (V-Boards and V-Panels) and Synthetic yarns for the textile
segment the shares of the Company are listed and actively traded on the
Bombay and National Stock Exchanges.

 As of 30th September 2017, Visaka had a market capitalisation of Rs 1,080

crore. The promoters held 41.23% of the Company’s equity share capital.

 Headquartered in Hyderabad, Visaka Industries has 11 manufacturing

facilities across India. These plants possess an aggregate production capacity
(annual) of about 8,02,000 tonnes of corrugated cement asbestos sheets and
1,29,750 tonnes of fibre cement flat board products. The Company also
comprises a spinning plant capable of producing 11,000 tonnes of yarn per
annum. The Company’s manufacturing units are supported by nine pan-India
marketing offices.

Future Plan
Visaka Industries Limited announced its foray into new electric vehicle (EV) business
segment.The company said it plans to set up 10 self-sustaining, solar powered EV
charging stations, called ATUMCharge, in the first phase across major metros to cater
to electric cars, bikes and scooters.

It plans to later set up these green EV charging stations across India and globally to
support the growth of EVs.The company said it will be leveraging its ATUM solar roof
product at its EV charging stations.

“ATUM Solar Roof will allow the entire EV charging proposition to move to 100% solar
whereas, currently, most EV charging stations use electricity produced by thermal
power generation companies, completely defeating the purpose of moving to
environment-friendly power.”

As per the company, ATUMCharge will also be partnering with other EV charging

station providers.Visaka will also open a chain of retail stores, ATUMLife, that will offer
eco-friendly green products such as ATUM solar roof, apparel made with sustainable
yarn, organic detergents, sustainable consumables, EVs and reusable kitchenware and
cutlery, among others. Visaka Industries is mulling opening 10 ATUM Life stores in
metros across India.

Besides, the company will also be developing a range of products as part of ‘Vnext
fibre cement boards’ that are a sustainable alternative to gypsum and plywood. The
company will offer building requirements ranging from pre-fabricated buildings to
interior furniture requirements
.
Commenting on the development, Vamsi Gaddam, joint managing director, Visaka
Industries Limited said, “The new business areas will augment our existing businesses,
but more importantly they define a viable roadmap for our future. our goal is to make
Visaka Industries Limited a predominantly green company with products and services
which are environment friendly and sustainable.” Committed to be ‘Credible’,
‘passionate’ and ‘innovative’ solutions providing company.

Mission
To be a complete cost- effective and qualitative building solutions provides to identify
potential products, which add values to the societal needs. To explore and enhance on
niche textile markets to create value and trust among all the shareholders.

Values
 Initiative, responsibility and accountability.
 Care, compassion and courtesy.
 Ethical functioning, fairness and transparency.
 Trust, good faith and integrity.
Financial Statement Analysis
Cash flow statement analysis of operating activities –
Cash flow from operating activities (CFO) indicates the amount of money a
company brings in from its ongoing, regular business activities, such as
manufacturing and selling goods or providing a service to customers. It is the first
section depicted on a company's cash flow statement.

Cash flow from operating activities does not include long-term capital

expenditures or investment revenue and expense. CFO focuses only on the core
business, and is also known as operating cash flow (OCF) or net cash from
operating activities.

Cash flow forms one of the most important parts of business operations and
accounts for the total amount of money being transferred into and out of a business.
Since it affects the company's liquidity, it has significance for multiple reasons. It
allows business owners and operators check where the money is coming from and
going to, it helps them take steps to generate and maintain sufficient cash
necessary for operational efficiency and other necessary needs, and it helps in
making key and efficient financing decisions.
Visaka industries cash flow from operating activities was 29,425.83 lakh in 2021 as
compared to 7,403.23 lakh in 2020
Cash flow Statement analysis of financing activities –
The financing activities of the company can be analysed by its cash flow statement.
Cash flow from financing is driven by proceeds/ repayment from current borrowing
proceeds from non – current borrowings, repayment of non-current borrowings,
repayment of loan from related parties. Dividend paid to company’s shareholder
including corporate dividend tax, proceeds from issue of shares and share warrants
and finance cost and net payments related to stock-based payments.
Visaka’s cash flow from financing activities are decreasing each year due to the
increase in share repurchased. In, 2020, Visaka’s share purchased worth 68.47 as
compared to 31.04 in 2019.
Financing activities involve the flow of cash and cash equivalents between the
company and its sources of finance i.e., investors and creditors for non – trading
liability such as long-term bonds, bonds payable etc.

Cash flow Statement analysis of investing activities –

The investing activities of the company can be analysed by its cash flow statement.
Cash flow from investing activities includes payments for property plant and
equipment, interest received, proceeds from sale of property, plant and equipment,
movement in other bank balances and maturities of marketable securities.
Visaka industries cash flow from investing activities was -5370.75 lakh in 2021 as
compared to -3429.20 lakh in 2020.
Investing activities is an important aspect of growth and capital. A change to property
plant and equipment. A large line scale item on the balance sheet is consider
investing activities.
Ratio Analysis –

PER SHARE RATIOS MAR MAR

2021 2020

Basic EPS (Rs.) 68.47 31.04

Diluted EPS (Rs.) 67.64 31.04

Cash EPS (Rs.) 91.18 56.69

Book Value /Share (Rs.) 379.48 317.21

Book Value /Share (Rs.) 379.48 317.21

Dividend / Share(Rs.) 15.00 15.00

Revenue from Operations/Share (Rs.) 693.80 659.76

PBDIT/Share (Rs.) 122.31 72.54

PBIT/Share (Rs.) 98.10 46.81

PBT/Share (Rs.) 90.35 35.88

Net Profit/Share (Rs.) 66.97 30.96

PROFITABILITY RATIOS

PBDIT Margin (%) 17.62 10.99

PBIT Margin (%) 14.13 7.09

PBT Margin (%) 13.02 5.43

Net Profit Margin (%) 9.65 4.69

Return on Networth / Equity (%) 17.64 9.76

Return on Capital Employed (%) 22.62 12.31

Return on Assets (%) 11.66 5.22

 Total Debt/Equity (X) 0.15 0.48

Asset Turnover Ratio (%) 120.81 111.32

LIQUIDITY RATIOS

Current Ratio (X) 2.17 1.52

Quick Ratio (X) 1.09 0.62

Inventory Turnover Ratio (X) 4.60 3.46

Dividend Pay-out Ratio (NP) (%) 7.44 70.87

Dividend Pay-out Ratio (CP) (%) 5.47 38.70

Earnings Retention Ratio (%) 92.56 29.13

Cash Earnings Retention Ratio (%) 94.53 61.30

VALUATION RATIOS

Enterprise Value (Cr.) 763.73 437.77

EV/Net Operating Revenue (X) 0.67 0.42

EV/EBITDA (X) 3.78 3.79

MarketCap/Net Operating Revenue (X) 0.68 0.20

Retention Ratios (%) 92.55 29.12

Price/BV (X) 1.25 0.43

Price/Net Operating Revenue 0.68 0.20

Earnings Yield 0.14 0.23

Analysis of Ratios –

Current ratio–
The standard norm for current ratio is 2:1. During the year 2021, the ratio is 2.17
means it is almost around the standard norm. however, the ratio is satisfactory, it
means that company has enough cash or liquidity to meet its liability .

Quick ratio –
The standard norm for the quick ratio is 1:1. During the year 2021, the quick ratio is
1.09 and during the year 2020 was 0.62. As there is increase from year 2020 to
2021, it is favourable. The company can convert 1.09 into cash quickly without the
loan of value of cash and its CA.

Net profit ratio –

The net profit ratio is increased from 4.69 to 9.65, it means NPR of current year is
more as compared to previous year. A higher net profit shows that a company is
more efficient at converting sales into actual profit.

Return on Capital Employed –

From the above table, we analysed that return on capital employed ratio of present is
more i.e., 22.62 as compared to previous year (2020) i.e., 12.31. A high ROCE value
indicates that a larger chunk of profit can be invested back into the company for the
benefit of shareholders.

Debt to Equity Ratio-

Debt to equity ratio during the year 2020 was 0.48 which decreases in the year 2021
i.e., 0.15. It indicates a lower amount of financing by debt via lenders, versus funding
through equity via shareholders.

Inventory turnover ratio–

According to above table, during the FY2020-21, the inventory turnover ratio is 4.60
and in the FY2019-20, it was 3.46. It means inventory turnover ratio is increase in
current year which indicates that the company has an efficient management of
inventories.

Earning per share –

In current financial year the company EPS is 68.47 which is more than previous
financial year. It means that investors will pay more for company’s share because
company has higher profit relative to its share price .
Leverage Analysis -
A leverage ratio is any one of several financial measurements that look at how
much capital comes in the form of debt (loans) or assesses the ability of a company
to meet its financial obligations. The leverage ratio category is important because
companies rely on a mixture of equity and debt to finance their operations, and
knowing the amount of debt held by a company is useful in evaluating whether it
can pay off its debts as they come due.
A leverage ratio may also be used to measure a company's mix of operating
expenses to get an idea of how changes in output will affect operating income.
Fixed and variable costs are the two types of operating costs; depending on the
company and the industry, the mix will differ. 

Finally, the consumer leverage ratio refers to the level of consumer debt compared
to disposable income and is used in economic analysis and by policymakers.

Degree of Financial Leverage 

Degree of financial leverage (DFL) is a ratio that measures the sensitivity of a
company’s earnings per share (EPS) to fluctuations in its operating income, as a
result of changes in its capital structure. It measures the percentage change in EPS
for a unit change in earnings before interest and taxes (EBIT) and is represented as:

DFL= EBIT / EBT

where:
EBIT = earnings before interest and taxes
EBT = earning before tax
For 2021 –
DFL = 16245/ 14963.61
DFL = 1.08
For 2020 –
DFL = 7454.14963/ 5713.30963
DFL = 1.30
The higher the DFL, the more volatile EPS will be. But in the year 2020-21, the
DFL is lower than year 2019-20. Since, interest is a fixed expense leverage
magnifies return and EPS which is good when operating income is rising but
can be a problem during tough economic time, then operating income is
under pressure.

Capital Structure

Authorized
Period Instrument Capital Issued Capital -PAIDUP-

Shares Face Capital

From To (Rs. Cr) (Rs. Cr) (no) Value (Rs. Cr)

Equity
2020 2021 Share 30.0 16.5 16480952 10.0 16.5

Equity
2019 2020 Share 30.0 15.9 15880952 10.0 15.9

Equity
2018 2019 Share 30.0 15.9 15880952 10.0 15.9

Equity
2017 2018 Share 30.0 15.9 15880952 10.0 15.9

Equity
2016 2017 Share 30.0 15.9 15880952 10.0 15.9

Equity
2015 2016 Share 30.0 15.9 15880952 10.0 15.9

Equity
2014 2015 Share 30.0 15.9 15880952 10.0 15.9

Equity
2013 2014 Share 30.0 15.9 15880952 10.0 15.9

Equity
2012 2013 Share 30.0 15.9 15880952 10.0 15.9

Equity
2011 2012 Share 30.0 15.9 15880952 10.0 15.9

Equity
2010 2011 Share 30.0 15.9 15880952 10.0 15.9

Equity
2009 2010 Share 30.0 15.9 15880952 10.0 15.9

Equity
2008 2009 Share 30.0 15.9 15880952 10.0 15.9

Equity
2007 2008 Share 30.0 15.9 15880952 10.0 15.9
 Equity
2006 2007 Share 30.0 13.9 13872957 10.0 13.9

Equity
2005 2006 Share 30.0 10.7 10674357 10.0 10.7

Equity
2004 2005 Share 15.0 10.7 10674357 10.0 10.7

Equity
2003 2004 Share 15.0 10.8 10674357 10.0 10.7

Equity
2002 2003 Share 15.0 10.7 10674357 10.0 10.7

Equity
2001 2002 Share 15.0 10.7 10674357 10.0 10.7

Equity
2000 2001 Share 15.0 10.7 10674357 10.0 10.7

Equity
1999 2000 Share 15.0 10.7 10674357 10.0 10.7

Equity
1999 2000 Share 15.0 10.7 250000 100.0 2.5

Equity
1998 1999 Share 15.0 10.8 10753765 10.0 10.8

Equity
1997 1998 Share 15.0 10.8 10753765 10.0 10.8

Equity
1996 1997 Share 15.0 10.8 10753765 10.0 10.8

Equity
1995 1996 Share 15.0 10.8 10753765 10.0 10.8

Equity
1994 1995 Share 15.0 7.9 7857833 10.0 7.9

Equity
1993 1994 Share 10.0 7.9 7857833 10.0 7.9

Equity
1992 1993 Share 10.0 5.4 5386750 10.0 5.4

Equity
1991 1992 Share 10.0 4.1 4104500 10.0 4.1
Dividend Policy
For the year ending March 2021 Visaka Industries has declared an equity dividend of
150.00% amounting to Rs 15 per share. At the current share price of Rs 612.70 this
results in a dividend yield of 2.45%.

The company has a good dividend track report and has consistently declared
dividends for the last 5 years.

Dividend pay out

Visaka has announced dividends for 25 successive years. The company paid out an
aggregated 169 crore in dividends across 25 years ending 2020-21.

Visaka Industries Ltd. has declared 30 dividends since July 11, 2002.In the past 12
months, Visaka Industries Ltd. has declared an equity dividend amounting to Rs
15.00 per share. At the current share price of Rs 610.05, this results in a dividend
yield of 2.46%.

Announcement Ex- Dividend Dividend Dividend

Remarks
Date Date Type (%) (Rs)

22-04-2021 18- Final 100 10.00 Rs.10.0000 per share(100%)Final

05- Dividend
2021

28-01-2021 08- Interim 50 5.00 Rs. 5.0000 per share (50%) First
02- Interim Dividend
2021

28-02-2020 20- Interim 50 5.00 Rs.5.0000 per share(50%)Second

03- Interim Dividend
2020

07-02-2020 18- Interim 100 10.00 Rs.10.0000 per

02- share(100%)Interim Dividend
2020

03-05-2019 20- Final 70 7.00 Rs.7.0000 per

06- share(70%)Dividend
2019
Announcement Ex- Dividend Dividend Dividend
Remarks
Date Date Type (%) (Rs)

07-05-2018 07- Final 70 7.00 Rs.7.0000 per

06- share(70%)Dividend
2018

08-05-2017 14- Final 60 6.00 Rs.6.0000 per

06- share(60%)Dividend
2017

10-05-2016 18- Final 20 2.00 21.0000

07-
2016

03-03-2016 17- Interim 30 3.00 Rs.3.0000 per share (30%) First

03- Interim Dividend
2016

07-05-2015 16- Final 50 0.00 Rs.5.0000 per share(50%)Final

07- Dividend
2015

26-05-2014 16- Final 25 0.00 Rs.2.5000 per

07- share(25%)Dividend
2014

20-05-2013 21- Final 35 0.00 Rs.3.5000 per share(35%)Final

06- Dividend
2013

29-10-2012 08- Interim 10 0.00 Re.1.0000 per share (10%)

11- Second Interim Dividend
2012

06-08-2012 16- Interim 15 0.00 Rs.1.50 per share(15%)Interim

08- Dividend
2012

24-05-2012 28- Final 50 0.00

06-
2012

27-05-2011 18- Final 20 0.00 Rs.2.00 per share(20%)Final

07- Dividend
2011

27-10-2010 10- Interim 30 0.00

11-
2010
Announcement Ex- Dividend Dividend Dividend
Remarks
Date Date Type (%) (Rs)

11-05-2010 24- Final 20 0.00

06-
2010

26-10-2009 05- Interim 15 0.00

11-
2009

21-07-2009 30- Interim 15 0.00

07-
2009

13-05-2009 08- Final 40 0.00 Normal dividend Rs. 3.00/- per

06- Equity Share and Special Silver
2009 Jubilee year Dividend Rs.1/- per
Equity Share.

23-06-2008 23- Final 30 0.00 AGM

07-
2008

04-05-2007 25- Final 30 0.00 AGM

05-
2007

12-05-2006 15- Final 30 0.00 AGM

05-
2006

30-06-2005 13- Final 20 0.00 AGM

07-
2005

29-06-2004 14- Interim 10 0.00

07-
2004

24-01-2004 28- Final 25 0.00

05-
2004

28-04-2004 28- Final 25 0.00

05-
2004

19-05-2003 16- Final 22 0.00

06-
2003
Announcement Ex- Dividend Dividend Dividend
Remarks
Date Date Type (%) (Rs)

15-06-2002 11- Final 18 0.00 AGM

07-
2002

Performance of the company

For the quarter ended 30-09-2021, the company has reported a Consolidated
Total Income of Rs 294.47 Crore, down 16.16 % from last quarter Total Income of
Rs 351.25 Crore and up 28.75 % from last year same quarter Total Income of Rs
228.72 Crore.

LATEST(RS 1-DAY 1-WK 1-MTH 3-MTH 6-MTH 1-YR 3-YR

COMPANY
) (%) (%) (%) (%) (%) (%) (%)

HIL LTD 4450.00 1.08 -4.36 -13.82 -21.92 24.16 135.09 96.78

RAMCO INDS. 276.30 -0.11 -1.93 -7.92 -11.82 -0.63 35.81 24.49

VISAKA INDUSTRIE 610.75 -0.60 -0.24 -8.90 -21.26 1.13 64.82 36.91

EVEREST INDS. 415.00 -1.10 -2.39 -5.56 -7.53 20.90 69.60 -14.33

SAHYADRI
583.00 0.73 -0.44 -12.23 -21.83 61.14 142.41 167.92
INDUSTR

BIGBLOC CONST. 182.50 16.54 17.63 28.39 51.45 113.83 104.37 257.84

A
33.95 13.17 6.26 10.41 9.69 38.85 (-) 19.75
INFRASTRUCTURE

NAVKAR URBAN. 41.85 3.85 6.49 -8.52 1.45 270.35 (-) 109.25

VARDHMAN
7.68 4.77 8.47 (-) (-) 112.15 (-) (-)
CONCR.
Conclusion
Your directors state that no disclosure or reporting is required in respect of the
following items as there were no transactions on these items during the year under
review:
Issue of equity shares with differential rights as to dividend, voting or otherwise;
Issue of shares (including sweat equity shares) to employees of the Company under
any scheme;
No significant or material orders were passed by any regulator or Court or Tribunal
which impacts the going concern status and Company’s operations in future.
Your directors further state that:
a) The company has complied with the provisions of constitution of internal
complaints committee under the sexual harassment of women at workplace
(prevention, prohibition and redressal) Act, 2013 and
b) During the year under review there were no cases filed pursuant to the Sexual
Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act,
2013.
Your director would like to express their sincere appreciation for the assistance and
co-operation received from the financial institutions, banks, government authorities,
customers, vendors and members during the year under review. Your director also
wish to place on record their deep sense of appreciation for the committed services
by the Company’s executives, staff and workers. The Directors deeply regret the
loss of life caused due to the outbreak of COVID-19 and are grateful to every person
who risked their life and safety to fight this pandemic.