SHIVA Chapter 1 and 2
SHIVA Chapter 1 and 2
SHIVA Chapter 1 and 2
INTRODUCTION
1. INTRODUCTION
Firms create manufacturing capacities for production of goods: some provide services to
consumers. They sell their goods or services to earn profit. They raise funds to acquire
manufacturing and other facilities. Thus, the three most important activities of a business firm are:
finance, production and marketing. A firm secures whatever capital it needs and employees it
(finance activity) in activities which generate returns on invested capital and marketing activities.
1. Investment decision:
Investment decision or capital budgeting involves the decision of allocation of capital or
commitment of funds to long-term assets, which would yield, benefits in future. It's one very
significant aspect is the task of measuring the prospective profitability of new investments. Future
benefits are difficult to measure and cannot be predicted with certainty.
2. Financing decision:
Financing decision is the second important function to be performed by the financial
manager. Broadly, he must decide when, where and how to acquire funds to meet the firm's
investment needs. The central issue before him is to determine the proportion of equity and debt.
The mix of debt and equity is known as the firm's capital structure. The firm's capital structure is
considered to be optimum when the market value of shares is maximized.
3. Dividend decision:
Dividend decision is the third major financial decision. The financial manager must
decide whether the firm should distribute a portion and retain the balance. Like the debt policy,
the dividend policy should be determined in terms of impact on the shareholder's value. The
optimum dividend policy is one, which maximizes the market value of the firm's shares.
4. Liquidity decision:
Current assets management, which affects a firm's liquidity, is an important finance
function. Current assets should be managed efficiently for safe guarding the firm against the
dangers of liquidity and insolvency. Investment in current assets affects firm's profitability,
liquidity and insolvency. Investment in current assets affects firm's profitability, liquidity and risk.
A conflict exists between profitability and liquidity while managing current assets.
Financial analysis is the process of identifying the financial strengths and weaknesses of
the firm. It is done by establishing relationships between the items of financial statements viz.
balance sheet and profit and loss account. Financial analysis can be undertaken by management of
the firm or by parties outside the firm viz., owner's creditors, investors and others.
Types of analysis:
1. Vertical analysis
2. Horizontal analysis
1. Vertical Analysis:
It is the analysis of relationship as between different individual components for a given
period of time. Comparison of current assets to current liabilities or comparison of debt to equity
for one point of time is the examples of vertical analysis. It can be made in the following ways.
By preparation of common size statements of the two similar units.
By preparing common size statement of different years of the same
business.
2. Horizontal Analysis:
It is the analysis of changes in different components the financial statements over different
periods with the help of a series of statements. Study of trends in debt or share capital or their
relationship over the past ten years period or study of profitability trends for a period of five years
or ten years are examples of horizontal analysis. It comprises:
Method of analysis:
Now the financial analyst may use one or multiple methods. financial analysis are:
i. Comparative statements.
ii. Common size statements.
iii. Trend analysis.
iv. Ratio analysis.
v. Funds flow analysis.
vi. Cash flow analysis.
vii. Cost-volume-profit analysis (cvp analysis).
However, over a period the scope of his function has tremendously widened. His presence
is required at every moment whenever any decision having involvement of funds is to be taken.
Now it is the F.M require looking into the financial implication, of any decision in the
firm. The functions of F.M are to manage the funds. Any act. procedures, decision relating to funds
comes under the purview of the F.M. since every activity in the business organization, be it
purchases, production marketing or capital expenditure has a financial implication, the finance
function is interlinked with all areas. In particular, the FM has to focus his attention on:
1. Procurement the required quantum of funds as and when necessary, at the lowest cost.
2. Investing those funds in various assets in the most profitable way.
3. Distribute returns to the shareholders in order to satisfy their expectations from the firm.
Depending upon the nature and size of the firm, the finance manager is required to
perform all or some of these functions from time to time. While performing the functions he is
required to take different decisions, which can be broadly classified into three groups.
Funds flow statement is a technical device designed to highlight the changes in the financial
condition of a business enterprise between the opening and closing balance sheet dates. The flow
of funds results in mainly profits of a business due to business operations. And has been well said
that “a business with an income at it heals furnishes always oil for its own wheels”, it is the profit
which becomes main sources of funds for a business. However profitable companies can also be
anemic with respect to working capital and since working capital is the life blood of an enterprise,
its shortage can disturb the operating cycle of the business. The concept of ‘funds’ the flow which
is to be examined in detail as to its sources and applications so as to know the net increase or
decrease in working capital over a period of time, usually a year.
One of the most important techniques of financial analysis is a preparation of funds flow
statement. It is the statement which portrays the changes in the financial position of an
enterprise. Balance sheet and income statement do not present a comparative picture, even if
placed side by side in that much clarity as the statement of changes in financial position which
focuses on the sources and uses of funds.
Definition:
A financial statement with summary for the period covered by it, the changes in financial
position including the sources from which funds were obtained by the enterprise and specific uses
to which funds were applied. Funds flow statement in a statement either prospective or
retrospective setting out the sources and application of the funds of an enterprise. The purpose of
the statement is to indicate clearly the requirement of funds and how they are propose to be raised
and efficient utilization and application of the same.
Concept of Funds:
Funds in the narrowness sense of the term as be equated to cash. But in the broader sense
and appropriate one here, it refers to working capital that is current assets less than current
liabilities.
A still broader interpretation of the term “funds” has been given by some accountants, and
according to them funds includes all resources used in the business whether in the form of human,
material, money, machinery and other. But it is not relevant for the purpose of flow statement. The
most common definition of fund is working capital since they use the term working capital as
synonym to current assets.
CONCEPT of Flow:
The dictionary meaning of the word flow is movement denoting change Therefore,
whenever there is a change of funds that is either increase or decrease there is a flow of funds.
There must be some cause of change- the cause may result in either raising the funds inflow of
funds there by becoming a source of fund or the cause may lead depletion of funds that is out of
funds, implying there by an application or use of funds in other words source of funds show the
reasons of increase in funds that is working capital and application of funds reveal the reasons of
decrease in funds that is working capital.
The meaning of funds flow or flow of funds illustrates the concept of funds flow statement
clearly the statement which analysis the flow of funds that is the reasons for changes in working
capital is a funds flow statement.
The reasons are set by the sources and application of funds and therefore the statement can be
called as the statement of sources an application (uses) of funds. Some accountants prefer to call
it in short as fund and to which place have gone. It is also designated as where got and where
(movements) of working capital, movements of flow statements etc.
The information which is provided by funds flow statement is neither available in the
balance sheet nor in the income statement and hence it’s important. The changes which have taken
place in between two accounting dates are highlighted by funds flow statement. A lay man cannot
grasp the underlying significance of achievements and progress of the company simply by a
personal of the balance sheet and income statement of different years. The comparative and
analytical study presented by the statement giving the details of sources and uses of funds during
a given period of immense help to the users of information.
It is very useful tool in analytical kit of the management also, besides the outsiders, in order to
have ‘at a glance’ appraisal of the financial and operating performance of a company. Since the
statement shows the extent to which the working capital has been effectively put to use, the
management’s task of taking policy decision regarding investment, dividends etc, is great
facilitated.
❖ Informative value:-
The financial consequence of business operation are clearly explained in details by
a funds flow statement some of the problems which crop up in the minds of investors are
well solved by a simple perusal of this statement for e.g.,
❖ Forecasting value:-
A projected funds flow statement can be prepared and resources can be properly
allocated after an analysis of the present state of affairs. The optimal utilization of available
funds are necessary for the overall growth of the enterprise. The funds flow statement prepared
in advance given a clear direction to the management in this raged.
❖ Testing value:- Whether the working capital has been effectively used or not by the
management can well be tested by funds flow statement. Whether working capital has
been maintained at proper level, and whether it is adequate or inadequate can be known by
a study of the statement. The management is warned against the injudicious uses of funds.
Decision-making value:
Since overall credit worthiness of the enterprise is known, creditors and money lenders
can decide as to whether they have to provide loans to company or not. The sources of raising
funds and their application help the shareholders to decide whether the management of the business
is an enlightened or not regarding managing funds. Mismanagement of funds may be
prevented. The management can be decided about the future financing policies and capital.
Every company needs to know the flow of funds both inflow and outflow. So that the
efficiency in utilizing the funds can be better to understand. For this the present analysis through
funds flow statement will be helpful.
The main need for the study is to study the operating activities, investing activities and
Financing activities in the Penna Cement Industries Limited and methods to evaluate the financial
performance of the company, with the help of Funds flow to evaluate the pattern of the firm.
The importance of cash management is so essential in any organization to run the business
with continuous basis. The present study also attempts to know the “cash management system in
selected in selected organization”.
The present study focuses on sources of funds and application of funds for a period of
time. The study is confirmed to find out the changes in the financial position of the Penna
Cement Financial Services Limited between the beginning and ending financial Year. It is a
technical device designed to analyze the changes in the financial condition of the business
enterprises between two dates.
This funds flow statement is a statement which indicates various means by which the
funds have been obtained during a certain period and the ways to which these funds have been
used during the period.
The term funds used here means working capital that is the excess of current assets
over current liabilities. It is an essential tool for the financial analysts and is of primary
importance to the financial management.
Now a days it is being widely used by the financial analyst credit granting institutions
and financial managers. The basic purpose of the funds flow statement is to reveal the changes
in the working capital on the two balance sheet dates. It helps in the analysis of financial
operations. It helps in the formation of realistic dividend policy. It helps in the proper allocation
of resources. It helps in appraising the use of working capital and finally it acts as future guide.
1. To analyze and examine the funds flow statement through working capital, funds from
operations and funds flow statement.
2. To measure the financial strength of the firm during the period of the study (2016-2017 to
2020-2021).
3. To analyze the changes in assets and liabilities from the end of one period of the time to
the end of another period of time
4. To find out the sources from which additional funds were derived and the use to which
their sources were put.
5. To study measures for the effective working of Penna Cement Industries limited.
6. To determine the progress and profitability of the organization and to offer appropriate
suggestions for better performance of the organization.
7. To study theoretical aspect of funds flow analysis and compare with practical fund flow
analysis with that of Penna Cement Industries limited.
METHODOLOGY OF THE STUDY
● Primary data
● Secondary data
Primary Data:-
The primary data needed for the study is gathered through interview with concerned
officers and staff, either individually or collectively, sum of the information has been verified or
supplemented with personal observation conducting personal interviews with concerned officers
of finance department of "PENNA CEMENT INDUSTRIES LIMITED".
Secondary Data:-
The secondary data needed for the study was collected from published sources such as,
pamphlets annual reports, returns and internal records, reference from text books and journal
management.
DATA SOURCE
● Due to the confidential records the data not exposed so the study may not exposed , so the
study may not be full-fledged .
● The study is purely based on the data available in the firm of annual reports .
● The period of the study for 5 years and the performance evaluation is also limited to 5years.
● The study is based on the past date, which cannot predict the future performance accurately.
● The study may not be detailed in all aspects.
● The study time period is limited.
● It should remember that a funds flow statement is not a substitute of an income statement
or a balance sheet. It provides only some additional information as regards changes in
working capital.
● The study based on the available annual reports and internal information of Penna cement
industries Limited Financial Services only.
● It cannot reveal continuous changes.
CHAPTER-II
INDUSTRY AND COMPANY PROFILE
AND PRODUCT PROFILE
INDUSTRY PROFILE
Cement Industry has been decontrolled from price and distribution on 1st March 1989
and de – licensed on 25th July 1991. However, the performance of the industry and prices of
cement are monitored regularly. Being a key infra structure industry.
The constraints faced by the industry are reviewed in the Infrastructure Coordination
Committee meetings held in the Cabinet Secretariat under the Chairmanship of Secretary
(Coordination). The Committee on Infrastructure also reviews its performance. The industry is
subject to quality control order issued on 17.2.2003 to ensure quality standards.
In 1995, one more factory was established at Panyam in Kurnool Dist., named as Panyam
Cement and mineral industries. At the same time one more factory has been established at
Maacherla in Guntur district. At the end of July 1985 the total capital invested on cement industry
was Rs.427.81 lakhs and provided employment for 1262 persons and 19 factories were functioning
with a production of 85lakh tones.
It ranks second in the world among cement producing countries, with per capita
consumption at 118Kg compared to the world avg. Of around 317. Per capita consumption is 366
Kg in Thailand, 626 Kg in China, 606 Kg in Malaysia and 1216 Kg in South Korea. This indicates
a huge potential for increase in consumption.
The Cement Corporation of India, which is a central public sector undertaking, has 10
units. Besides, there are 10 large cement plants owned by various state Governments. Keeping in
view the past trends, a production target of 133 million tons has been set for the year 2016 – 17.
During the Tenth Plan, the Industry is expected to grow at the rate of 10% per annum and is
expected to add capacity of 40 – 52 million tons.
Mainly through expansion of existing plants and use of more fly ash in the production of
cement. A part from meeting the domestic demand, the cement Industry also contributes towards
exports. The export of cement and clinker during the last three years is as under:-
Export of Cement:
(In million tons)
Year Cement Clinker Total
High railway tariff; high incidence of state and central levies and duties; lack of private
and public investment in infrastructure projects; poor quality coal and inadequate growth of related
infrastructure like sea and rail transport, ports and bulk terminals. In order to utilize excess
capacity available with the cement Industry, the Government has identified the following thrust
areas for increasing demand for cement:
Technological advancements:
Indian cement industry is modern and uses latest technology. Only a small segment of
industry is using old technology based on wet and semi-dry process. Efforts are being made to
recover waste heat and success in this area has been significant.
India is also producing different varieties of cement like Ordinary Portland Cement
(OPC), Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement (PBFS), Oil Well
Cement, Rapid Hardening Portland Cement, Sulphate Resisting Portland Cement, White Cement,
etc. Production of these varieties of cement conforms to the BIS Specifications. It is worth
mentioning that some cement plants have set up dedicated jetties for promoting bulk transportation
and export.
Another large consumer has been the roads sector. The off take was good when the
NHDP programme was launched but there was a Null last year. “Once again new orders have been
placed and in 2006, the industry will pick up. The estimate is that from roads, demand is not more
than 4-5 million tones but it makes a difference in the growth numbers”.
The industry has been adding capacity of 6-7 million per annum by Brownfield
expansion and de-bottlenecking which is expected to partly cater to the requirement because it is
growing by around 20 million tons per annum.
Challenges before the industry:
Energy costs account for half of the cost of production of cement. Last year saw a 15-
16% increase in coal prices and then diesel prices went up pushing up transportation costs.
Freight problems:
The importance of freight for the cement industry cannot be emphasized enough. While
in the last few months’ railways have been steadily losing freight to road sector they have been
confined cement to market-is around Rs.350-400 a ton or Rs.20 and bag that could go as high a
Rs.800 for long leads. This would only easy the first level of sale and additional costs are involved
to take it further.
Another issue, which will hit the industry hard, is that of logistics and a Supreme Court
judgment on carrying capacity for trucks. Accordingly, a state govt. has been directed to enforce
the discipline that trucks only carry a specified load. “Many states and already implementing this
and there is already an increase in freight rates and in some cases, it has gone up by 50%. Also,
the requirement for trucks to carry the same freight has nearly doubled and in many places the
industry is being forced to move to railways.”
High taxes:
While the railways have had capacity to meet the requirement, it is expected that in March
the commencement of peak season for the procurement of food grains, the railways would be
constrained to provide adequate number of wagons.
So fright rates are up, railways cannot provide wagons and trucks are unlikely to be viable
so there could be a serious dislocation of supplies going forward.According to the cement
manufactures association total taxes and duties on cement come to around Rs.900 a ton or Rs. 45
a bag. “So at a price of Rs.150 a bag in the market, taxes and duties account for one third. Which
is high for such a basic product. This includes excise duty, sales tax and royalty on limestone.
The importance of limestone can only be underscored as for every ton of cement produced.
1.5tons of limestone is required. “For limestone, royalty is on a per ton basis at Rs. 40 whereas for
most minerals it is a percentage of the pithead cost. Effectively we are paying Rs.70 a ton for
limestone as royalty. VAT is at 12.5% without any justification and it should be in 4% category,
excise is at Rs.408 per ton when it should be around Rs.200.
Export Advantages:
From a modest beginning if 1.6 lacks tons in 1989-90, Indian exports of cement/clinker
have grown rapidly at about 30-40% and this year exports will cross 10 million tons.
Overall, the industry is in a better state today than 2 years ago. “Cement prices even
today are way below global levels. So setting up Greenfield capacities is not attractive, as
prices will not give attractive returns on investment. That is a minor reason why there is no
Greenfield capacity coming up. It has to be born in mind that one third of the prices is
accounted for by taxes and duties and nearly 20-25% by the freight component. So what
produces earn at the factory gate is among the lowest in the world.”
This year 2021 has commenced on a good note and in fact, December was a very good
month with dispatches at 12.5 million tons and January dispatches were in excess of 13 million
tons.
“This means capacity utilization is in the nineties which is healthy and will actually lead
to firming up of prices. It looks like sales could be 137 million a ton for 2020-21(125 million
tons in 2019-20) and so far growth has been 10%. There are enough reasons to believe it will
sustain.”
COMPANY PROFILE
A Penna cements industry Limited was incorporate on Oct 24th 1991, to set up a cement plant
at Tadipatri in Ananthapur District of Andhra Pradesh. The plant commenced commercial
production on Aug 10th 1994 as mini cement plant with initial capacity of 0.30 million tons. The
company short period getting profits. Later 1995 plant capacity was increased 0.4 million tons
which upgrade its state major plant.
Penna cement industries ltd establishing by Mr. Prathap Reddy aged 44 began his
entrepreneur career with civil engineering contracts by lunching pioneer builders Mr.Prathap reddy
has experiences of two decades in cement industry .he was the executive director of priyadarshini
cement right from its inception in 1984 in 1991 Mr. Prathap Reddy incorporated his own cement
company located in between Talaricheruvu and Urichintala village. At present about 2720 tons of
various grades of cement is being manufactured daily at the factory.
Key Management:
Chairman and Managing Director:
⮚ Mr. P.Prathap Reddy
Whole-time Director:
⮚ Mr. Lakshmi Kantham Dabbara
Non-Executive Directors:
⮚ Mrs. P.Deepthi Reddy
⮚ Mr. P.Venu Gopal Reddy
Independent Directors:
1. Mr. Anil Kumar K.
2. Dr. Kancherla Ravindranath
3. Mr. P.Pradeep Kumar
4. Mr. Sairam Mocherla
5. Mrs. Umanath Varahabhotla
Chief Financial Officer:
Mr. Petluru. Venugopal Reddy
Company Secretary:
Mr. Raj Kumar Singh
Statutory Auditor:
M/s C.Ramachandram & Co.
Chartered Accountants
H.No. 3-6-237,606
Lingapur Build Complex, Himayathnagar,
Hyderabad – 500029,
Telangana.
Internal Auditor:
M/s Deloitte Haskins & Sells LLP
KRB Tower, Plot No. 1 to 494A, 2nd Floor, Awing,
Jubliee Enclave Madhapur, Hyderabad – 500081,
Telangana.
Bankers:
State Bank of India
IDBI Bank Limited
Yes Bank Ltd.
Registered Office:
H.No.8-2-268/A/1/S & S1, Plot No.705 Road No.3,
Banjara Hills,
Hyderabad – 500034
Telangana, India.
LOCATION OF THE COMPANY:
TALARICHERUVU VILLAGE,
TADIPATRI MONDAL,
ANANTHAPUR DISTRICT,
ANDHRA PRADESH.
GST No. :
37AABCP2290D1ZN
CIN NO. :
U26942AP1991PLC013359
Quarry:
Major raw material for cement industry. The quarry has a mining lease of 235.52 acres in
Talaricheruvu village. 440.47 acres in Urichintala village and 629.75 acres in Korumanipalli
village of Kurnool district.
RAW MATERIALS :
Limestone:
Limestone is the major raw material for the cement industry. Limestone constitutes 60 to
70 percent of the total raw material costs. Nearly 1.5 – 1.6 tons of limestone is required for
producing one ton of cement clinker limestone (calcium carbonate) is a rock of either sedimentary
or metamorphic origin with calcium oxide as its main constituent. In India limestone occurs
mainly as sedimentary rocks and constitutes 30 percent of the total sedimentary rocks in the
country. Cement grade limestone is available in 21 states in the country. About 65 percent of the
cement plants in India uses sedimentary limestone and 20 percent use metamorphic crystalline
limestone. India has 85,980 million tons of cement grade limestone deposits, which is enough to
produce 100 million tons of cement for the next 500 years.
Total reserve
No. of years limestone reserve would last = -------------------------------------
Avg., limestone Consumption
It is quite clear that India’s limestone reserves are adequate for the next several years. More
over new reserves would be discovered every year Limestone is mixed extensively in India and
ranks second in production next to coal mining. Major portion of limestone mining portion of
limestone mining is for cement industry (nearly 75% to 80%) therefore the demand supply
situation is quite comfortable.
In India limestone deposits are abundantly found only in Siroly (Rajasthan), Santna,
Belaspur (M.P., wadi (Karnataka), Tadipatri (A.P.) and some places in Gujarat. Units are generally
located in close proximity of limestone deposits in Madhya Pradesh, Andhra Pradesh, Tamil Nadu,
Karnataka, Rajasthan, and Gujarat.
The quality of required for the cement production should have the following composition.
Lime : 50%
Silicon : 3%
Aluminum : 4%
Iron oxide : 0.50%
Magnesium : 0.50%
Loss on Ignition : 42%
Total : 100%
If Magnesium content exceeds 0.4-0.5 percent, the limestone is not suitable for cement.
Similarly, lime content is directly proportional to the clinker and cement quality and quantity.
GYPSUM:
Gypsum is another important required material for cement manufacturing, constitutes
about 5 percent of the weight of the cement. Gypsum is added in required quantity at the time of
grinding of clinker. The clinker and the required amount of the Gypsum is added to control the
setting time of the cement. India possesses resources of gypsum. Hence its availability is not a
concern for the cement manufacture.
Other Raw Materials:
A few other raw materials like Blast furnace slag and fly ash are also required for the
manufacture of the cement. Blast furnace slag is a waste product obtained from iron smelting
furnace whereas fly ash is the left over ash from thermal power station.
Inputs:
Although limestone is the major raw material for cement industry, the critical raw
material is energy. How well the company uses coal and electricity and how much it costs will
determine the success ratio for cement manufacturers. Major inputs in cement manufacturing
include coal, power and freight.
Coal:
In India coal is being used as the fuel for the manufacturing of cement. Elsewhere in the
world lignite, nature gas and oil are also used. They are not used in India as continuous supply of
natural gas is not assured used by plants in southern plants of India, like Dalmia Cement, Chettinad
cement etc., as a supplement to coal which compensates the storage for coal in this area. Non
cooking coal of lower ash content is required by cement plants. It should be less than 30%. A
useful heat of 4500 kilocalories per 1k.g of coal. Coal of lower ash enables comparatively lower
quality of limestone. The coal should have volatile matter and high temperature. Transport of coal
is another big issue as many of larger cement plants are located close to the limestone deposits,
which may not have coal deposits nearby.
Power:
Power constitutes about 10% of the total cement production costs. About 3 percent of the total
power generated in the country is used by cement industry. The average consumption of power in
the dry process kilns is around 125 units per million tons of clinker.
Freight:
Freight constitutes a very significant part of the cost structure of cement units in India. On an
average freight for transporting finished product alone forms 13.85% of the cost of production of
large cement plants.
The main areas of freight coast for the cement industries are
● Transporting coal from the coal fields to the cement factories.
● Transporting cement from the plants to their mark
Limestone transport would be even costlier than transporting coal or cement. Hence
cement plants are located in cluster near limestone deposits. Indian railway is moving up to 60%
of the total cement production.
The total employees in PENNA CEMENT are 345 covering all departments. There are
nearly 500 contract labor working every day on casual basis.
Note:
Due to change in the quality of lime stone and coal, the consumption of additives has been
changed accordingly.
Material Balance:
Limestone + Additives Raw material
Note:
Depending upon quality of raw materials the above consumption may value.
PRODUCT PROFILE
Penna Cement manufactures and distributes its own main product lines of cement. It aims
to optimize production across all the marketers, providing a complete solution for customer’s
needs at the lowest possible cost, an approach known as “strategic Integration of Activities”.
Cement is made from a mixture of 80 percent limestone and 20 percent clay. These are crushed
and ground to provide the “raw meal”, a pale, flour – like powder. Heated to around 1450o C
(2642o F) rotating kilns, the “meal” undergoes complex chemical changes and is transformed into
clinker. Fine – grinding the clinker together with a small quality of gypsum produces cement.
Adding other constituents at this stage produces cements for specialized uses.
Here are just a few reasons why Penna Cement chosen by millions of India.
● Ideal raw material
● Low lime and magnesia content and high proportion of silicates
● Greater fineness
● Slow initial and fast final setting
● Wide range of applications
● Quality customer services