MIRA INFORM REPORT
|
Report
Date : |
24th
June, 2006. |
IDENTIFICATION
DETAILS
|
Name : |
ASIAN
PAINTS INDIA LIMITED |
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Registered
Office : |
Asian
Paints House, 6A, Shanti Nagar, Santacruz (East), Mumbai - 400 055, India. |
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Country
: |
India |
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Financials
(as on) : |
31.03.2005 |
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Date
of Incorporation : |
24.10.1945 |
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Com.
Reg. No.: |
11-4598 |
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CIN
No.: [Company
Identification No.] |
L24220MH1945PLC004598 |
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TAN
No.: (Tax
Deduction & Collection Account No.) |
MUMA00665A |
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PAN
No.: (Permanent
Account No.) |
AAACA3622K |
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Legal
Form: |
Public Limited Liability Company. The company’s shares are
listed on the stock exchange. |
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Line
of Business : |
Manufacturers
of Paints, Enamels, etc. |
RATING & COMMENTS
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MIRA’s
Rating : |
A |
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
56-70 |
A |
Financial & operational base
are regarded healthy. General unfavourable factors will not cause fatal
effect. Satisfactory capability for payment of interest and principal sums |
Fairly Large |
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Maximum
Credit Limit : |
USD
2200000 |
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Status
: |
Good |
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Payment
Behaviour : |
Regular |
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Litigation
: |
Clear |
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Comments
: |
Subject
is a well-established and reputed company having fine track. Fundamentals of
the company are strong and healthy. Payments are always correct and as per
commitments. The
company can be considered good for any normal business dealings at usual
trade terms and conditions. |
LOCATIONS
|
Registered
Office : |
Asian
Paints House, 6A, Shanti Nagar, Santacruz (East), Mumbai - 400 055, India. |
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Tel.
No.: |
91-22-56958000 |
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Fax
No.: |
91-22-56958803
/ 8888 / 8107 |
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E-Mail
: |
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Website
: |
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Head
Office : |
Nirmal, 5th Floor, Nariman Point, Mumbai - 400
021, Maharashtra, INDIA |
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Tel.
No.: |
91-22-22024544 / 22024517 / 22024799 |
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Fax
No.: |
91-22-22028993 |
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Accounts,
Materials & Phthalic Division : |
Plot No. 5, Gaiwadi Industrial Estate, S. V. Road,
Goregaon (West), Mumbai - 400 062, Maharashtra, India |
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Penta Division : |
Warehouse No. E - 89, GNT Road, Ponniammanmedu (P.O),
Madhavaram, Chennai - 600 010, Tamilnadu, India |
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Factory : |
Plot No.2702, GIDC Industrial Area, Ankleshwar 393
002, Gujarat.
B5-B10, Sipcot Industrial
Complex, Cuddalore 607 005, Tamil Nadu. |
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Sales
Offices : |
Agartala, Agra, Akola, Ahmedabad - Narol, Sarkhej,
Bangalore - Peenya, Bilekahalli, Baroda, Bhopal, Chandigarh, Chennai -
Madhavram, Guindy, Coimbatore, Cuttack, Faridabad, Ghaziabad, Goa, Gurgaon,
Guwahati, Gwalior, Halol, Hubli, Indore, Jabalpur, Jaipur, Jalandhar, Jammu,
Jamshedpur, Jodhpur, Kanpur, Kolkata, Kochi, Kolhapur, Kozhikode, Lucknow,
Ludhiana, Madurai, Mangalore, Mumbai - Dadar, Kandivli, Mulund, Vashi,
Nagpur, Nashik, New Delhi - Badarpur, Mayapuri, Patparganj, Wazirpur,
Panchkula, Patna, Pimpri, Pune, Raipur, Rajkot, Saharanpur, Salem,
Secunderabad, Siliguri, Surat, Thiruvananthapuram, Tiruchirapalli, Tirupathi,
Udaipur, Varanasi, Vijayawada, Visakhapatnam and Zirakpur |
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Regional
Distribution Centres : |
Located at Ahmedabad, Bangalore, Ghaziabad, Hyderabad,
Mumbai and Raipur |
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Overseas
Offices : |
Located at Sri Lanka, Solomon Islands, Nepal, Sultanate of
Oman and New Zealand |
DIRECTORS
|
Name : |
Mr.
Ashwin C Choksi |
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Designation
: |
Chairman |
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Name : |
Mr.
Ashwin S Dani |
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Designation
: |
Vice Chairman & Managing Director |
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Name : |
Mr. Abhay
A Vakil |
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Designation
: |
Managing Director |
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Name : |
Mr.
Mahendra C Choksi |
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Designation
: |
Director |
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Name : |
Mr. Amar
A Vakil |
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Designation
: |
Director |
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Name : |
Ms.
Tarjani Vakil |
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Designation
: |
Director |
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Name : |
Mr.
Dipankar Basu |
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Designation
: |
Director |
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Name : |
Mr.
Deepak M. Satwalekar |
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Designation
: |
Director |
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Name : |
Mr. R. A.
Shah |
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Designation
: |
Additional Director |
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Name : |
Dr.
Swaminathan Sivaram |
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Designation
: |
Additional Director |
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Name : |
Mr.
Mahendra M. Shah |
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Designation
: |
Additional Director |
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Name : |
Mr. Hasit
Ashwin Dani |
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Designation
: |
Additional Director |
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Other Personnel |
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Name : |
Mr.
Jayesh Merchant |
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Designation
: |
Company Secretary |
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KEY EXECUTIVES
|
Name |
Mr. Ashwin C. Choksi |
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Designation |
Chairman |
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Age |
61 years |
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Qualification |
M. Com. |
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Experience |
38 years |
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Date
of Joining |
01.01.1965 |
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|
Name |
Mr. Ashwin S Dani |
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Designation |
Vice Chairman & Managing Director |
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Age |
61 Years |
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Qualification |
B.Sc (Hons.), B.Sc (Tech.), M.S. |
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Experience |
35 Years |
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Date
of Joining |
01.10.1968 |
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Previous
Employment |
Interchemical Corporation, Development Chemist |
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|
Name |
Mr. Abhay Vakil |
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Designation |
Managing Director |
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Age |
52 years |
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Qualification |
B.Sc., B.S. |
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Experience |
28 years |
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Date
of Joining |
05.08.1974 |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Directors, Relatives and associates |
41,111,965 |
42.86 |
|
Other directors and their relatives |
2,923 |
0.00 |
|
Individuals |
16,790,464 |
17.51 |
|
Domestic Companies |
843,881 |
0.88 |
|
Financial Institutions |
12,451,144 |
12.98 |
|
Mutual Funds and Banks |
2,261,262 |
2.36 |
|
FIIs and OCBs |
20,287,955 |
21.15 |
|
Non-Resident Individuals |
2,170,185 |
2.26 |
|
Total |
95,919,779 |
100.00 |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturers
of Paints, Enamels, etc. |
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Products
: |
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PRODUCTION STATUS
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
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(a)
Paints, enamels, varnishes and blacks |
MT/KL |
300150 |
220284 |
|
(b)
Synthetic Resins (For mainly captive consumption) |
MT |
77880 |
84306 |
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(c)
Phthalic Anhydride |
MT |
24000 |
22183 |
|
(d)
Pentaerythritol |
MT |
3000 |
4430 |
|
(e)
Sodium Formate |
MT |
1800 |
2505 |
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(f)
Formaldehyde (50%)' |
MT |
13500 |
10598 |
GENERAL INFORMATION
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No. of
Employees : |
2869 |
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Bankers
: |
State Bank of India, Mumbai, Maharashtra, India |
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Facilities : |
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Banking Relations : |
Good |
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Auditors
: |
Shah
& Company Chartered Accountants |
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Subsidiaries
: |
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Joint
Venture : |
Asian PPG
Industries Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
99,500,000 |
Equity
Shares |
Rs. 10/- each |
Rs. 995.000 millions |
|
50,000 |
11%
Redeemable Cumulative Preference Shares |
Rs. 100/- each |
Rs. 5.000 millions |
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Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
95,919,779 |
Equity shares |
Rs. 10 each |
Rs.959.197 millions |
|
|
a)
93,989,940 Bonus Shares of Rs. 1 0/- each fully paid up issued on
capitalisation of Share premium (Rs. 21 .91 million) and General Reserves
(Rs. 91 7.98 million). b)
294,000 shares of Rs. 1 O/- each issued as fully paid up pursuant to the
Scheme of Rehabilitation / Amalgamation of Pentasia Chemicals Ltd., without
payment received in cash. |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
SHAREHOLDERS FUNDS |
|
|
|
|
1] Share Capital |
959.200 |
959.200 |
641.860 |
|
2] Reserves & Surplus |
4763.000 |
4335.570 |
4124.320 |
|
NETWORTH |
5722.200 |
5294.770 |
4766.180 |
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|
|
|
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LOAN FUNDS |
|
|
|
|
1] Secured Loans |
283.650 |
441.880 |
641.640 |
|
2] Unsecured Loans |
555.120 |
1251.340 |
394.540 |
|
3] Minority Interest |
-- |
697.820 |
-- |
|
TOTAL BORROWING |
838.770 |
2391.040 |
1036.18 |
|
Deferred Tax Liability |
305.380
|
533.410
|
581.590
|
|
|
|
|
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TOTAL
|
6866.350 |
8219.210 |
6383.950 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
3112.310 |
4691.560 |
3615.280 |
|
Capital work-in-progress |
82.780 |
46.47 |
18.640 |
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|
|
|
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INVESTMENTS |
2584.270 |
1017.180 |
1476.940 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
Inventories |
3307.890 |
|
2068.960 |
|
Sundry Debtors |
1489.630 |
|
1198.790 |
|
Cash & Bank Balances |
210.420 |
|
271.930 |
|
Interest Accrued |
0.030 |
1882.260 |
0.930 |
|
Loans & Advances |
727.250 |
|
624.980 |
|
Advance Payments of Taxes |
0.000 |
|
95.500 |
|
Other Receivables |
190.120 |
|
86.010 |
|
Total Current Assets |
5925.340 |
1882.260 |
4347.100 |
|
Less : |
|
|
|
|
Current Liabilities & Provisions |
4838.350 |
-- |
3102.520 |
|
Total Current Liabilities |
4838.350 |
-- |
3102.520 |
|
Net Current Assets |
1086.990 |
1882.260 |
1244.580 |
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.010 |
28.510 |
|
Goodwill on consolidation |
|
581.730 |
-- |
|
|
|
|
|
TOTAL
|
6866.350 |
8219.210 |
6383.950 |
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
Sales Turnover [including other income]
|
19731.290 |
22900.700 |
15880.070 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
2708.000 |
2493.900 |
2248.490 |
Provision for Taxation
|
973.180 |
-- |
828.390 |
Profit/(Loss) After Tax
|
1734.820 |
2493.900 |
1420.100 |
|
|
|
|
|
Import Value
|
1544.770 |
1265.630 |
1369.450 |
|
|
|
|
|
Total Expenditure
|
16477.390 |
14271.080 |
13548.100 |
SUMMARISED RESULTS
|
PARTICULARS |
|
|
31.03.2006 Full Year |
|
|
|
|
|
|
Sales
Turnover |
|
|
23191.600 |
|
Other
Income |
|
|
359.300 |
|
Total Income |
|
|
23550.900 |
|
Total
Expenditure |
|
|
20008.400 |
|
Operating
Profit |
|
|
3542.500 |
|
Interest |
|
|
38.300 |
|
Gross
Profit |
|
|
3504.200 |
|
Depreciation |
|
|
455.300 |
|
Tax |
|
|
1191.500 |
|
Reported
PAT |
|
|
1878.100 |
|
Dividend |
|
|
1250.000 |
KEY RATIOS
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
Debt Equity Ratio |
0.14 |
0.17 |
0.24 |
|
Long Term Debt Equity Ratio |
0.12 |
0.15 |
0.20 |
|
Current Ratio |
1.08 |
1.07 |
1.14 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Asset |
3.46 |
3.29 |
3.10 |
|
Inventory |
8.71 |
10.08 |
10.38 |
|
Debtors |
16.47 |
16.52 |
15.77 |
|
Interest Cover Ratio |
42.22 |
27.54 |
27.93 |
|
Operating Profit Margin (%) |
13.75 |
13.65 |
14.78 |
|
Profit Before Interest and Tax Margin (%) |
11.74 |
11.38 |
12.38 |
|
Cash Profit Margin (%) |
9.37 |
9.28 |
10.01 |
|
Adjusted Net Profit Margin (%) |
7.36 |
7.00 |
7.61 |
|
Return on Capital Employed (%) |
44.09 |
40.57 |
42.65 |
|
Return on Net Worth (%) |
31.50 |
29.28 |
32.32 |
STOCK PRICES
|
Face Value |
Rs.10/- |
|
High |
Rs.625.00/- |
|
Low |
Rs.572.00/- |
LOCAL AGENCY FURTHER INFORMATION
History
The company
was started as a partnership firm in 1942 and was converted into a private
limited company under the name of Asian Oil and Paint Company Private Limited
in 1945. In 1965 the name of the
company was changed to Asian Paints (India) Private Limited. The company was converted into a public
limited company in 1973.
It’s
Company Registration Number is 4598.
It is
India's largest paints company and the market leader in decorative paints.
Asian Paints (India) Limited's brands, Royal in the premium segment, Apcolite
in the middle segment, Gattu, Tractor, Utsav, 3-Mango, etc, in the lower
segment, are all well-established brands in their respective segments. Its
one-stop colour shop has software to choose and select 1,511 combinations of
various colours. The company enjoys the market share of 27% in the overall
market.
Its product
range includes Wall Paints, Metal Paints, Wood Finishes, Primers and others.
Vertical integration has seen it diversify into specialty products such as
Pentaerythritol and Phthalic Anhydride. Apart from offering the customers a
wide range of decorative and industrial paints, it even custom-creates products
to meet specific needs.
The company
boasts of state-of-the-art manufacturing plants at Bhandup in the State of
Maharashtra; at Ankleshwar in the State of Gujarat; at Patancheru in the State
of Andhra Pradesh; and at Kasna in the State of Uttar Pradesh. The company has
been awarded the ISO 9001 certification for its Bhandup, Patancheru and
Ankleshwar plants. Its Phthalic Anhydride plant and Ankleshwar Plant have received
the ISO 14001 for Environment Management Standards.
To keep
abreast of world technology and to protect its competitive edge, the company
has from time to time entered into technology alliances with world leaders in
the paint industry. It has a 50:50 joint venture with PPG Industries, the world
leader in automotive coatings to meet the increasing demand of the Indian
automotive industry. It has also drawn on the world's latest technology for its
manufacturing capabilities in areas like coil coatings and high-tech resins -
thus ensuring that its product quality lives up to exacting international
standards, even in the most sophisticated product categories.
The company
is involved in an ongoing process of scanning the global environment for the
latest development in the paint technology, indigenising them and absorbing
them. Asian Paints (India) Limited gives thrust on its own in-house R & D,
creating new opportunities by effectively harnessing indigenous creativity.
The company
is also increasing its international presence. Currently it is exporting to
about 22 markets in the Asia-Pacific region, the Middle East and Africa. It
also has nine overseas joint venture units and is looking to expand its
presence in the South Asian region. During 2000-2001 the company established
tow units, one each in Oman and Mauritius. It also acquired the controlling
stake in Delmege Forsyth & Company (Paints), one of the second largest
paint company of Sri-Lanka. Asian Paints (India) Limited aims to be amongst the
top five decorative paint manufacturers in the world, and the leading
decorative paints company in the emerging markets by the year 2007.
During
2001-02 Asian Paints Industrial Coatings Limited a wholly owned subsidiary of
Asian Paints, was incorporated in October, 2001. The company has also acquired the powder coatings business of
Hawcoplast Chemicals Limited. the
acquisition was funded from equity of Rs. 80.000 millions and a loan of Rs.
60.000 millions, financed by the company.
the subsidiary commenced operations with effect from 1st
November, 2001. The 100% equity
interest in Technical Instruments Manufacturers (India) Limited was also made
by the company by investing Rs. 181.500 millions as quity and Rs. 117.700
millions towards taking over of liabilities.
The company
is in the process of setting up a manufacturing unit in Bangladesh and a JV
agreement is in the process. The above
unit is expected to be operational in 2002-03.
Pentasia Investments Limited the subsidiary of the company is going to
be amalgamated with the company and the board has accepted the proposal made by
the company. The company has proposed
to go in for bonus issue in the ratio of 1:2 and the same is subject to the consent of the shareholders. In November, 2002 th company has acquired
50.1% stake in Berger International Limited a listed company in Singapore stock
exchange. It has also acquired 60% of
shares of SCIB Chemical SAE, Egypt, the fifth largest paint company in that
country. The total consideration for
the combined acquisitions was approximately Rs. 819.000 millions.
All the company’s paints plant have the ISO 9001
certification
The company
has technical collaboration with :
v
Nippon
Paint Company, Japan
Fixed Assets :
Freehold
Land
Leasehold
Land
Buildings
Plant and
Machinery
Scientific
Research :
Equipment
Buildings
Furniture
andOffice Equipment
Vehicles
Leased
Assets : Equipment
Net Sales
and Operating income of Asian Paints (India) Ltd. grew by 14.4% from Rs. 16,966
million (US $ 388 million*) in 2003-04 to Rs. 19,415 million (US $ 444 million)
in 2004-05.
> Net
Profit increased by 1 7.4% from Rs. 1,478 million (US $ 34 million) in 2003-04
to Rs. 1,735 million (US $40 million) in 2004-05. I be Board of Directors have
recommended dividend of 95% for the year 2004-05 with a payout ratio of
60%. Return qn Average Net Worth has
increased from 29.3% in 2003-04 to 31.4 % in 2004-05. State of the art
ernoi.sion paint manufacturing facility commissioned at Sriperumbudur near
Chennai. Net Soles and Operating income for the group grew by 15.4% from Rs.
22,179 million (US $ 507 million) in
2003-04 to
Rs. 25,605 million (US $ 585 million) in 2004-05.
Net Profit
to shareholders after minority share grew by 20.2% from Rs. 1,449 million (US $
33 million) in. 2003-04 to Rs. 1,741 million (US $ 40 million) in 2004-05. The
revenue of Berger international Limited has increased by 10.9%. SC1B Chemical,
Egypt has reported a profit for
the first
time after its acquisition in 2002. International business sales crossed US $
100 million.
CHANGE OF NAME
The
overseas acquisitions have put the Company on the global map. The Company, through its subsidiaries, is competing
in highly competitive markets dominated by well known international brands. The
Company's strength in logistics and distribution networking is ably supported
by right technology and prudent financial management practices. The Company's
growth is not confined solely to the boundaries of Indian markets. The Company
has drawn
up
ambitious plans for attaining and sustaining leadership status in international
markets in which it operates and in the light of this, it is appropriate to
change the name of the
Company to
'Asian Paints Limited'. The process of passing a Special Resolution under
Section
21 of the
Companies Act, 1956 by way of postal ballot under Section 1 92A of the
Companies Act, 1956, seeking shareholders' consent for change of name of the
Company
has been
initiated.
Asian
Paints offers Mumbaiites solution to Water Woes
~ Builds a
Total Water Management Centre (TWM) as part of its CSR initiative~
MUMBAI,
February 11, 2006: Water scarcity is emerging as a major issue
confronting megacities like Mumbai. Asian Paints, India’s largest paint company
today took a huge stride
towards
promoting the cause of total water management by giving the city (and
neighboring districts like Thane) its first Total Water Management (TWM)
Centre. The Honorable BMC Commissioner Shri Johny Joseph (IAS), today formally
inaugurated the centre, which is located in the premises of Asian Paints manufacturing
facility at Bhandup.
While
inaugurating the centre, the honorable Commissioner highlighted the need for
making water conservation a movement in the city and advocated Rain Water
Harvesting (RWH) as the need of the hour to rescue Mumbai from a water crisis
in near future. The TWM centre is open to all institutions, housing
societies,NGOs, manufacturing facilities or any concerned citizen.
Speaking at the
inauguration, Mr. Jalaj Dani, President nternational, Asian Paints Limited
mentioned “We are delighted delighted to present Mumbai with its one and only
Total
Water
Management Centre. This centre is planned to be a one stop solution to all
water conservation issues. It showcases various working models on water
conservation and also
provides
information on water supply, distribution, storage and usage.” He further
added
“The
precarious water situation in our city is known to all and we would request
citizens
and
institutions to make use of this facility to implement water conservation
methods in
their
localities.”
The centre
will educate interested citizens on concepts of water management and
explain
modalities of implementing various water conservation projects for all types of
building
structures and natural sources. The TWM Centre boasts of various working models
of RWH
suited for industrial as well as for residential societies. Issues regarding
tanker water
supply and
ideal process of water distribution has been showcased through working
models.
TWM
Centre will:
v
Educate
interested citizens on
concepts of water
management.
v
Explain
modalities of
implementing various water
conservation projects for all
types of building structures.
v
Showcase working models on
Rain Water Harvesting.
v
Provide expertise at no cost.
PRESS
RELEASE
It is a
known fact that Mumbai faces a problem of water scarcity despite receiving
abundant
rainfall. And this problem stands to increase manifold. According to an MMRDA
report,
the city’s demand for water is expected to rise to 7950 MLD (million litres
daily) by
2011, from
the present demand which is 3026 MLD. There is already a shortfall, as the
present
water supply in the city is 2500 MLD as stated in the report.
Understanding
this concern, four years ago Asian Paints made the issue of water
management
the main agenda of its Corporate Social Responsibility (CSR) programme
and
installed at its manufacturing facility in Mumbai (Bhandup), a cost effective
model of
RWH which
is an easy and affordable method to conserve rain water. It was the first
corporate
in the city to build an RWH scheme at a manufacturing facility. Subsequently
the
company helped to implement RWH schemes at various manufacturing facilities,
institutions
and co-operative societies in the city. It also continued to spread awareness
about this
concept by organizing and addressing various seminars on water
management.
With the inauguration of the TWM Centre at Bhandup, the company has
taken a
step further in its efforts to provide a holistic view about water management
to
concerned
citizens.
Asian
Paints Corporate Social Responsibility Initiatives
Asian Paints approaches Corporate
Social Responsibility (CSR) from the perspective of being a
responsible corporate citizen. The
Company has identified projects across all its manufacturing
locations in the country in areas of
education, health care and rain water harvesting. In Ankleshwar (Gujarat), the
company has been involved in improving infrastructure in local schools, while
in Kasna (UP), Patancheru (AP) and Sriperumbudur (TN), the company has
undertaken a number of initiatives to facilitate convenient and affordable
healthcare. In Mumbai, Asian Paints has taken up the cause of Rain Water
Harvesting in a major way. Through its various CSR projects, in the last two years,
Asian Paints has managed to touch the lives directly of atleast 75, 000 people
in the country.
About
Asian Paints:
Asian Paints is India's largest
paint company and ranked among the top ten Decorative
Coatings Companies in the World with
a group turnover of INR 25.6 billion(USD 585 million).
Asian Paints along with its various
subsidiaries has operations in 22 countries across the world and 29
manufacturing facilities, servicing consumers in 65 countries through Berger
International, SCIB Paints-Egypt,
Asian Paints, Apco Coatings and Taubmans. The company
has an enviable reputation in the
corporate world for professionalism, fast track growth and
building shareholder equity.
PRESS
RELEASE
ASIAN
PAINTS CONSOLIDATED NET PROFIT FOR THE QUARTER INCREASES BY 11.8%
Net Sales
for the group increased by 10.9 %~
All
business units register good growth~
Mumbai,
January 31, 2006: Asian Paints today announced their financial
results
for the quarter and nine months ended December 31, 2005.
Asian
Paints Consolidated Results, Q3-FY’06:
For the
quarter ended 31st December 2005, on consolidation of accounts of the
subsidiaries
and joint venture of Asian Paints – Sales & operating Income for the group
has
increased
by 10.9 % to Rs. 8181.5 million from Rs. 7374.7 million. Profit before
depreciation
interest
and tax (PBDIT) for the group has increased by 3.3 % to Rs. 1173.2 million from
Rs.
1135.4
million. Profit before Tax after goodwill has increased by 4.9 % to Rs. 976.4
million
from Rs.
930.9 million. Net profit after minority interest has increased by 11.8 % to Rs
626.3
million
from Rs. 560.3 million for the previous corresponding quarter.
Commenting
on the results, Mr. Ashwin Dani, Vice Chairman & Managing Director, Asian
Paints
Limited, said “In the nine months to date, we have had steady growth in
all
segments
of decorative coatings and across all regions of the country. This is in spite
of
the Diwali
season being impacted by prolonged and heavy rains. However, underlying
demand is
good and we look forward with confidence. Sales from their industrial as well
as
international
operations registered steady positive growths. In their domestic operations,
we have
also seen a softening of raw material prices in the last quarter.”
Asian
Paints Consolidated Results, 9M-FY’06:
For the
nine months ended 31st December 2005, Asian Paints group – Sales &
operating
Income has
increased by 16.3 % to Rs. 22540.7 million from Rs.19382 million. Profit before
depreciation
interest and tax (PBDIT) for the group has increased by 9.7 % to Rs. 3193.6
million
from Rs. 2192.2 million. Profit before Tax after goodwill has increased by 14.1
% to
Rs. 2623.2
million from Rs. 2299.8 million. Net profit after minority interest has
increased by
20.5% to
Rs. 1655.7 million from Rs.1374.1 million.
PRESS RELEASE
About Asian
Paints:
Asian
Paints is India's largest paint company and ranked among the top ten Decorative
Coatings
Companies in the World with a group turnover of INR 25.6 billion(USD 585
million).
Asian
Paints along with its various subsidiaries has operations in 22 countries
across the
world and
29 manufacturing facilities, servicing consumers in 65 countries through Berger
International,
SCIB Paints-Egypt, Asian Paints, Apco Coatings and Taubmans. The company
has an
enviable reputation in the corporate world for professionalism, fast track
growth
and
building shareholder equity.
For
further information, please contact:
Arun/Rajdeep
Asian
Paints Limited
Phone:
+91-22-56958549/47; Email: proffice@asianpaints.com
PRESS
RELEASE
Four
Asian Paints plants conferred with 'Sword of Honour'
by
the British Safety Council
All
four plants received this recognition for the second time~
Sword
of Honour’ is considered as the pinnacle of achievement in
safety
in the world~
MUMBAI,
December 21, 2005: Four manufacturing facilities of Asian
Paints in Ankleshwar (Gujarat), Mumbai
(Maharashtra), Kasna (Uttar Pradesh) and Patancheru (Andhra
Pradesh) have been presented with the British Safety
Council (BSC) Sword of Honour, in a ceremony recently held at the historic
Goldsmiths’ Hall, London. The Sword of Honour is recognized the world over as
the pinnacle of achievement in safety management systems and is designed to
encourage and reward best practice. This is the second year in succession that
all four plants have received the Sword of Honour accolade. During the
stringent BSC audits, the four Asian Paints plants not only achieved the 5 star
rating (the highest rating), but also recorded scores that put the plants among
the 40 best manufacturing facilities audited by the BSC in this year; these 40
are awarded the Sword of Honour.
Congratulating
Asian Paints, David Ballard, Director General of the Council said
"You
have shown they commitment to excellence by demonstrating that a safety culture
is integral to they organisation. I am sure that they business, they clients,
and the community in which you operate are already seeing great benefits.
British Safety Council is very pleased that almost half the awards this year
have gone to International Organizations."
Commenting
on this achievement, PM Murty, President Decorative (India), Asian
Paints
Limited mentioned. “Asian Paints adopted the BSC standards
as they
seemed
to be very stringent and demanding of commitment to safety and
occupational
health at every level. We see these awards not as an end but an
encouragement
for all their employees to continue to progress with constant
improvement.”
PRESS
RELEASE
About
British Safety Council
The
British Safety Council is one of the world's leading occupational health,
safety and environmental organizations. The British Safety Council works
hand-in-hand with the world's leading companies in developing safe systems for
work. British Safety Council Services is a company registered in England and
Wales and develops new products and services to campaign on Health, Safety and
Environmental issues.
About
Asian Paints
Asian
Paints is India's largest paint company and ranks among the top ten decorative
coatings companies in the world today, with a turnover of Rs 25.6 billion
(around USD 585 million). Asian Paints operates in 22 countries and has 29
paint manufacturing facilities in the world servicing consumers in over 65
countries. Besides Asian Paints, the group operates around the world through
its subsidiaries Berger International Limited, Apco Coatings, SCIB Paints and
Taubmans. Asian Paints Paint Manufacturing facilities in India Five Paint
Manufacturing units in India at Ankleshwar (Gujarat), Mumbai
(Maharashtra), Kasna (Uttar Pradesh) Patancheru (Andhra
Pradesh) and Sriperumbudur (Tamil Nadu) with manufacturing capacity of 300
million litres per annum. The fifth plant at Sriperumbudur has been
commissioned in January this
year
and will be offered for audit shortly.
For
additional information please contact:
Jason
/ Rajdeep
Asian
Paints Limited
Tel:
022 - 5695 8549 / 8547, 8600(Board)
Fax:
022 - 5695 8888
Email:
proffice@asianpaints.com
Asian
Paints Consolidated Turnover crosses Rs. 3000 Crores
MUMBAI,
-- Asian Paints' focus on sustainable growth has enabled it to cross Rs.
30000.000 Millions (Rs. 30 billion) turnover mark for FY 05-06. At Rs.30.2
billion, sales turnover for the group recorded a growth of 17.4 % over the
previous year, with all business units registering double digit sales growth.
Asian Paints Consolidated Results FY - 2006
For
the year ended March 31, 2006, on consolidation of accounts of the subsidiaries
and joint venture of Asian Paints - Profit before depreciation interest and tax
(PBDIT) for the group increased by 15.3 % to Rs. 4237.13 million from Rs.
3675.01 million. Profit before Tax after goodwill increased by 19.2 % to Rs
3431.38 million from Rs 2878.34 million. Net profit after minority interest has
increased by 21.9 % to Rs 2121.48 million from Rs 1740.91 million for the year.
"Their
focus on sustainable profitable growth has not only enabled us to achieve Rs.
30000.000 Millions sales turnover but also register good growth in profits. The
boom in the construction sector, coupled with their competitive pricing
strategies, new product introductions, expansion of Colour World outlets and
innovative marketing initiatives have helped us increase sales in the
decorative segment in India." said Ashwin Dani, Vice Chairman &
Managing Director, Asian Paints Limited. "For the third consecutive year,
industrial coatings in India recorded growth in excess of 20% and their
foothold in this sector will be further strengthened by new capacity expansion
projects. International operations registered steady sales growth aided by the
good performance of the Middle East and Caribbean region" he added.
The
Board of Directors recommended the payment of final dividend of Rs. 5.50 per
share (55 %). In addition, the Board of Directors have recommended a one-time
special dividend of Rs 2.50 per equity share of Rs 10/- each (25%) on the
occasion of 60th year of incorporation of the Company. Interim dividend of Rs.
4.50 per share (45%) was distributed in Nov'05. Thus total dividend including
special dividend announced for financial year 2005-06 is Rs 12.50 /- per share
(125%). The total dividend distributed in 2004-05 was Rs 9.5/- per share (95%).
Performance
Review
The
Decorative India business is the largest business unit for the company. The
demand for decorative paints was good throughout the year. The business unit
witnessed excellent growth in all wall finish products due to impressive growth
recorded by interior and exterior emulsions. New product introductions aided
the growth process - the nationwide launch of Apex Ultima was completed during
the year; the product comes with a warranty offer. Royale Play - an effect
finish was launched in many markets. In industrial operations, the business
registered growth in excess of 20 % due to the good performance of the automotive
coatings, powder coatings and protective coatings segment. For international
business, Paint value sales increased by 15.7% to Rs. 5.3 billion.
Asian Paints Consolidated Results Q4-FY2006
For
the quarter ended Mar 31, 2006, on consolidation of accounts of the
subsidiaries and joint venture of Asian Paints - Net sales & operating
Income for the group increased by 21.3 % to Rs 7650.11 million from Rs 6307.34
million. Profit before depreciation interest and tax (PBDIT) for the group
increased by 35.8% to Rs 1038.28 million from Rs 764.60 million. Profit before
Tax after goodwill increased by 39.7% to Rs 808.14 million from Rs. 578.53
million. Net Profit after minority interest increased by 27 % to Rs 465.77
million from Rs 366.77 million for the quarter.
About
Asian Paints:
Asian Paints is India's largest
paint company and ranked among the top ten Decorative Coatings Companies in the
World with a turnover of INR 30.2 billion(USD
680 million). Asian Paints
along with its subsidiaries has operations in 22 countries across the
world and 30 manufacturing facilities, servicing consumers in 65 countries
through Berger International, SCIB Paints-Egypt,
Asian Paints,
Apco Coatings and Taubmans. The company has an enviable reputation in the
corporate world for professionalism, fast track growth and building shareholder
equity.
Asian Paints offers
Mumbaiites solution to Water Woes
MUMBAI,
India -- Water scarcity is emerging as a major issue confronting megacities
like Mumbai. Asian Paints, India's largest paint company took a huge stride
towards promoting the cause of total water management by giving the city (and
neighboring districts like Thane) its first Total Water Management (TWM)
Centre. The Honorable BMC Commissioner Shri Johny Joseph (IAS), formally inaugurated
the centre, which is located in the premises of Asian Paints manufacturing
facility at Bhandup.
While
inaugurating the centre, the honorable Commissioner highlighted the need for
making water conservation a movement in the city and advocated Rain Water
Harvesting (RWH) as the need of the hour to rescue Mumbai from a water crisis
in near future. The TWM centre is open to all institutions, housing societies,
NGOs, manufacturing facilities or any concerned citizen. Speaking at the
inauguration, Mr. Jalaj Dani, President International, Asian Paints Limited
mentioned “We are delighted to present Mumbai with its one and only Total Water
Management Centre. This centre is planned to be a one stop solution to all
water conservation issues. It showcases various working models on water
conservation and also provides information on water supply, distribution,
storage and usage.” He further added “The precarious water situation in their
city is known to all and we would request citizens and institutions to make use
of this facility to implement water conservation methods in their localities.”
The
centre will educate interested citizens on concepts of water management and
explain modalities of implementing various water conservation projects for all
types of building structures and natural sources. The TWM Centre boasts of
various working models of RWH suited for industrial as well as for residential
societies. Issues regarding tanker water supply and ideal process of water
distribution has been showcased through working models.
It
is a known fact that Mumbai faces a problem of water scarcity despite receiving
abundant rainfall. And this problem stands to increase manifold. According to
an MMRDA report, the city's demand for water is expected to rise to 7950 MLD
(million litres daily) by 2011, from the present demand which is 3026 MLD.
There is already a shortfall, as the present water supply in the city is 2500
MLD as stated in the report.
Understanding
this concern, four years ago Asian Paints made the issue of water management
the main agenda of its Corporate Social Responsibility (CSR) programme and
installed at its manufacturing facility in Mumbai (Bhandup), a cost effective
model of RWH which is an easy and affordable method to conserve rain water. It
was the first corporate in the city to build an RWH scheme at a manufacturing
facility. Subsequently the company helped to implement RWH schemes at various
manufacturing facilities, institutions and co-operative societies in the city.
It also continued to spread awareness about this concept by organizing and
addressing various seminars on water management. With the inauguration of the
TWM Centre at Bhandup, the company has taken a step further in its efforts to
provide a holistic view about water management to concerned citizens.
Asian Paints Corporate
Social Responsibility Initiatives
Asian
Paints approaches Corporate Social Responsibility (CSR) from the perspective of
being a responsible corporate citizen. The Company has identified projects
across all its manufacturing locations in the country in areas of education,
health care and rain water harvesting. In Ankleshwar (Gujarat), the company has
been involved in improving infrastructure in local schools, while in Kasna
(UP), Patancheru (AP) and Sriperumbudur (TN), the company has undertaken a
number of initiatives to facilitate convenient and affordable healthcare. In
Mumbai, Asian Paints has taken up the cause of Rain Water Harvesting in a major
way. Through its various CSR projects, in the last two years, Asian Paints has managed to touch the lives directly of atleast
75, 000 people in the country.
About
Asian Paints
Asian Paints is India's largest
paint company and ranked among the top ten Decorative Coatings Companies in the
World with a group turnover of INR 25.6 billion(USD 585 million). Asian Paints along
with its various subsidiaries has operations in 22 countries across the world
and 29 manufacturing facilities, servicing consumers in 65 countries through
Berger International, SCIB Paints-Egypt, Asian Paints, Apco
Coatings and Taubmans. The company has an enviable reputation in the corporate
world for professionalism, fast track growth and building shareholder equity.
CMT REPORT
[Corruption, Money laundering & Terrorism]
The Public Notice information has been collected from
various sources including but not limited to: The Courts, India Prisons
Service, Interpol, etc.
1] INFORMATION ON DESIGNATED PARTY
No
records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that
subject is or was the subject of any formal or informal allegations,
prosecutions or other official proceeding for making any prohibited payments or
other improper payments to government officials for engaging in prohibited
transactions or with designated parties.
3] Asset Declaration :
No
records exist to suggest that the property or assets of the subject are derived
from criminal conduct or a prohibited transaction.
4] Record on Financial Crime :
Charges or
conviction registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with Government :
No record exists to
suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market survey
revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report
:
No press reports / filings exists on the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments
on Corporate Governance to identify management and governance. These factors
often have been predictive and in some cases have created vulnerabilities to
credit deterioration.
Our Governance Assessment focuses principally on the
interactions between a company’s management, its Board of Directors,
Shareholders and other financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local
laws, regulations or policies that prohibit, restrict or otherwise affect the
terms and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 46.36 |
|
UK Pound |
1 |
Rs. 84.49 |
|
Euro |
1 |
Rs. 58.38 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP
CAPITAL |
1~10 |
8 |
|
OPERATING
SCALE |
1~10 |
8 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT
LINES |
1~10 |
- |
|
--MARGINS |
-5~5 |
|
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE
DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT
ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
66 |
This
score serves as a reference to assess SC’s credit risk and to set the amount of
credit to be extended. It is calculated from a composite of weighted scores
obtained from each of the major sections of this report. The assessed factors
and their relative weights (as indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound
financial base with the strongest capability for timely payment of interest
and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working
capital. No caution needed for credit transaction. It has above average
(strong) capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base
are regarded healthy. General unfavourable factors will not cause fatal
effect. Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered
normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable
factors carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent.
Repayment of interest and principal sums in default or expected to be in
default upon maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists.
Caution needed to be exercised |
Credit not recommended |