MIRA INFORM REPORT
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Report Date : |
19TH May, 2006 |
IDENTIFICATION DETAILS
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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 : |
24th
October 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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Line of Business : |
Manufacturers of Paints,
Enamels, etc. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
RATING
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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
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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
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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
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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 |
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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 |
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FIIs
and OCBs |
20,287,955 |
21.15 |
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Non-Resident
Individuals |
2,170,185 |
2.26 |
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Total |
95,919,779 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Paints,
Enamels, etc. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Installed Capacity |
Actual Production |
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(a)
Paints, enamels, varnishes and blacks |
MT/KL |
300150 |
220284 |
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(b)
Synthetic Resins (For mainly captive consumption) |
MT |
77880 |
84306 |
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(c)
Phthalic Anhydride |
MT |
24000 |
22183 |
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(d)
Pentaerythritol |
MT |
3000 |
4430 |
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(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 :
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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 :
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No. of Shares |
Type |
Value |
Amount |
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95,919,779 |
Equity
shares |
Rs. 10 each |
Rs.959.197 millions |
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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
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SOURCES OF
FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
959.200 |
959.200 |
641.860 |
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2] Reserves & Surplus |
4763.000 |
4335.570 |
4124.320 |
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NETWORTH |
5722.200 |
5294.770 |
4766.180 |
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LOAN FUNDS |
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1] Secured Loans |
283.650 |
441.880 |
641.640 |
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2] Unsecured Loans |
555.120 |
1251.340 |
394.540 |
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3] Minority Interest |
-- |
697.820 |
-- |
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TOTAL
BORROWING |
838.770 |
2391.040 |
1036.18 |
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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 |
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Capital work-in-progress |
82.780 |
46.47 |
18.640 |
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INVESTMENTS |
2584.270 |
1017.180 |
1476.940 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
3307.890 |
|
2068.960 |
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Sundry Debtors |
1489.630 |
|
1198.790 |
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Cash & Bank Balances |
210.420 |
|
271.930 |
|
Interest Accrued |
0.030 |
1882.260 |
0.930 |
|
Loans & Advances |
727.250 |
|
624.980 |
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Advance Payments of Taxes |
0.000 |
|
95.500 |
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Other Receivables |
190.120 |
|
86.010 |
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Total
Current Assets |
5925.340 |
1882.260 |
4347.100 |
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Less : |
|
|
|
|
Current Liabilities & Provisions |
4838.350 |
-- |
3102.520 |
|
Total Current
Liabilities |
4838.350 |
-- |
3102.520 |
|
Net Current Assets |
1086.990 |
1882.260 |
1244.580 |
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|
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MISCELLANEOUS EXPENSES |
0.000 |
0.010 |
28.510 |
|
Goodwill on consolidation |
|
581.730 |
-- |
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|
|
|
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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 |
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|
|
|
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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 |
|
|
|
|
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Import Value
|
1544.770 |
1265.630 |
1369.450 |
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|
|
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Total Expenditure
|
16477.390 |
14271.080 |
13548.100 |
SUMMARISED RESULTS
|
PARTICULARS |
|
|
31.03.2006 Full Year |
|
|
|
|
|
|
Sales Turnover |
|
|
23191.600 |
|
Other Income |
|
|
359.300 |
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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. 45.73 |
|
UK
Pound |
1 |
Rs. 85.81 |
|
Euro |
1 |
Rs. 58.48 |
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 |