MIRA
INFORM REPORT
|
Report Date : |
15.03.2007 |
IDENTIFICATION
DETAILS
|
Name : |
ASIAN PAINTS
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) : |
31.03.2006 |
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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 |
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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 62000000 |
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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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Mumbai Office : |
912, Raheja Centre,
Free Press Journal Road, Nariman Point, Mumbai : 400 021. |
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Tel. No. : |
2288 1568 / 1569
/ 4527 ; 2282 5163 |
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Fax No. : |
2282 5484 |
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Email : |
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Mumbai Adress : |
6A Shantinagar, Santacruz (E); Mumbai : 400 055 |
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Email : |
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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 |
SOLE
PROPRIETOR/PARTNERS/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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Name : |
Mr. Jayesh
Merchant |
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Designation : |
Company Secretary |
KEY EXECUTIVES
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Name : |
Mr. Ashwin C. Choksi |
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Designation : |
Chairman |
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Date of Birth/Age : |
61 years |
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Qualification : |
M. Com. |
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Experience : |
38 years |
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Date of Appointment : |
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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Date of Birth/Age : |
61 Years |
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Qualification : |
B.Sci (Hons.), B.Sci (Tech.), M.S. |
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Experience : |
35 Years |
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Date of Appointment : |
01.10.1968 |
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Name : |
Mr. Abhay Vakil |
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Designation : |
Managing Director |
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Date of Birth/Age : |
52 years |
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Qualification : |
B.Sci., B.S. |
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Experience : |
28 years |
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Date of Appointment : |
05.08.1974 |
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MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Promoter’s holding : |
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1. Promoters : |
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- Indian Promoters |
41906118 |
43.69 |
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- Persons acting in
concert |
3395898 |
3.54 |
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(B) Non - Promoter’s holding : |
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2. Institutional Investors |
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- Mutual Funds and
UTI |
1217728 |
1.27 |
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- Banks, Financial
Institutions, Insurance Companies (Central / State government / Institutions / Non – government
institutions )
|
10517996 |
10.96 |
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- FIIs |
19305977 |
20.13 |
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3. Others |
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- Private
Corporate Bodies |
1916054 |
2.00 |
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- Indian Public |
15640332 |
16.31 |
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- NRIs / OCBs |
2019676 |
2.10 |
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Total |
95919779 |
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 |
241903 |
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(b) Synthetic
Resins (For mainly captive consumption) |
MT |
77880 |
55460 |
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(c) Phthalic
Anhydride |
MT |
24000 |
23041 |
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(d)
Pentaerythritol |
MT |
3000 |
4860 |
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(e) Sodium
Formate |
MT |
1800 |
2742 |
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(f) Formaldehyde
(50%)' |
MT |
13500 |
11690 |
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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Associates Company : |
Dutch Boy Phillppines Inc, |
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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. 995.000millions |
|
50,000 |
11% Redeemable Cumulative Preference Shares |
Rs. 100/- each |
Rs. 5.000millions |
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Total |
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RS.1,000.000millions |
Issued, Subscribed
& Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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95,919,779 |
EquityShares |
Rs. 10/- each |
Rs.959.200 millions |
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a) 93,989,940
Bonus Shares of Rs. 10/- each fully paid up issued on capitalisation of Share
premium (Rs.21.910 million) and General Reserves (Rs.917.98 million). b) 294,000 shares of Rs. 10/- 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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Total |
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Rs.959.200 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
959.200 |
959.200 |
959.200 |
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2] Share Application Money |
0.000 |
0.000 |
4335.570 |
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3] Reserves & Surplus |
5,263.640 |
4,763.000 |
5294.770 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
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NETWORTH |
6,222.840 |
5,722.200 |
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LOAN FUNDS |
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441.880 |
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1] Secured Loans |
318.790 |
330.510 |
1251.340 |
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2] Unsecured Loans |
592.050 |
551.900 |
697.820 |
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TOTAL BORROWING |
910.840 |
882.410 |
2391.040 |
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DEFERRED TAX LIABILITIES |
284.680 |
305.380 |
533.410
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TOTAL |
7418.360 |
6909.990 |
8219.210 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
3,004.300 |
3,112.310 |
4691.560 |
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Capital work-in-progress |
242.590 |
82.780 |
46.470 |
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INVESTMENT |
2,745.510 |
2,584.270 |
1017.180 |
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DEFERREX TAX ASSETS |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
3,487.860
|
3,307.890 |
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Sundry Debtors |
1,851.090
|
1,489.630 |
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Cash & Bank Balances |
283.870
|
257.280 |
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Other Receivable |
214.240
|
190.120 |
1882.260 |
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Loans & Advances |
980.680
|
727.250 |
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Advance Payment of Taxes (Net of provision for tax) |
16.580
|
0.000 |
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Interest accrued on investments |
0.000
|
0.030 |
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Total
Current Assets |
6,834.320
|
5,972.200 |
1882.260 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
4,335.490
|
3,924.860 |
0.000 |
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Provisions |
1,072.870
|
916.710 |
0.000 |
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Total
Current Liabilities |
5,408.360
|
4,841.570 |
0.000 |
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Net Current Assets |
1,425.960
|
1130.630 |
1882.260 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.010 |
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Goodwill on consolidation |
0.000 |
0.000 |
581.730 |
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TOTAL |
7418.360 |
6909.990 |
8219.210 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
23,191.550 |
19,545.560 |
22,900.700 |
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Other Income |
359.260 |
316.140 |
0.000 |
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Total Income |
23550.810 |
19861.700 |
22,900.700 |
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Profit/(Loss) Before Tax |
3,048.870 |
2,708.000 |
2,493.900 |
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Provision for Taxation |
|
|
0.000 |
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Profit/(Loss) After Tax |
1,867.800 |
1,734.820 |
2,493.900 |
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Earnings in Foreign Currency : |
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Export Earnings of Own Product at FOB Value |
125.060 |
102.080 |
0.000 |
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Export of traded goods at FOB value |
2.310 |
2.150 |
0.000 |
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Royalty |
41.460 |
18.160 |
0.000 |
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Others receipt including recoveries from
subsidiaries |
35.070 |
9.420 |
0.000 |
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Total Earnings |
203.900 |
131.810 |
0.000 |
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Imports : |
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Raw Materials |
1,960.850 |
1,426.710 |
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Stores & Spares |
30.580 |
34.270 |
1,265.630 |
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Capital Goods |
31.380 |
54.190 |
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Packing Materials |
19.320 |
29.600 |
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Total Imports |
2,042.13 |
1,544.77 |
1,265.630 |
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Expenditures : |
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Manufacturing / Administrative / Selling and Distribution Expenses |
4,865.240 |
4,144.050 |
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Raw Material Consumed |
13,517.350 |
11,284.450 |
14,271.080 |
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Employees Remuneration and Benefits |
1,289.760 |
1,179.300 |
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Total Expenditure |
19,672.35 |
16,607.8 |
14,271.080 |
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QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2006 (1st Quarterly) |
30.09.2006 (2nd Quarterly) |
30.12.2006 (3rd
Quarterly |
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Sales Turnover |
6034.000 |
7849.000 |
7059.700 |
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Other Income |
64.200 |
100.600 |
107.800 |
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Total
Income |
6098.200 |
7949.600 |
7167.500 |
|
Total Expenditure |
5094.900 |
6647.700 |
6049.400 |
|
Operating Profit |
1003.300 |
1301.900 |
1118.100 |
|
Interest |
13.000 |
17.700 |
22.900 |
|
Gross Profit |
990.300 |
1284.200 |
1095.200 |
|
Depreciation |
109.700 |
114.500 |
112.300 |
|
Tax |
299.500 |
401.200 |
331.400 |
|
Reported PAT |
580.200 |
775.600 |
651.300 |
200606
Quarter 1 :
Expenditure Includes (Increase)/Decrease in Stock in Trade
Rs (662.31)million Consumption of Raw & Packing materials Rs 4061.29
million Employee remuneration Rs 356.19 million Other Expenditure Rs 1339.70
million Tax Includes Provision for Current Tax Rs 291.460 million Deferred Tax
Rs 0.880 million Fringe Benefit Tax Rs 8.000 million EPS is Basic & Diluted
Status of Investor Complaints for the quarter ended June 30, 2006 Complaints
Pending at the beginning of the quarter Nil Complaints Received during the quarter
06 Complaints disposed off during the quarter 06 Complaints unresolved at the
end of the quarter Nil :
1. Net sales and operating income include income arising out
of processing charges for products manufactured for the joint venture unit,
Asian PPG Industries Ltd and wholly owned subsidiary, Asian Paints Industrial
Coatings Ltd, lease rentals towards leasing of tinting machines to dealers and
revenue from Home Solutions operations.
2. With effect from the financial year ended March 31, 2006
the Company has discontinued the method of reporting Sales net of excise duty
expense incurred on production of finished goods pursuant to Accounting
Standard Interpretation (ASI) 14 (Revised) Disclosure of Revenue from Sales
Transactions issued by the Institute of Chartered Accountants of India. The
excise duty expense has since been bifurcated into two components: excise duty
expense relatable to sales is reduced from Gross Sales and the balance amount
relating to the difference between the closing stock and opening stock is
recognized in the (Increase)/decrease in stock in trade. The figures of the
previous periods have been regrouped accordingly. The same has no impact on the
profits of the Company.
3. Consequent to the revised Accounting Standard 15 - Employee
Benefits (AS -15) Issued by the Institute of Chartered Accountants of India
effective April 01, 2006, the Company has revised its provision for retirement
and other benefits as at April 01, 2006. As per the transitional provisions
contained in AS-15, the net additional opening liability as on April 01, 2006
towards liability for retirement and other benefits amounting to Rs 13.53
million has been adjusted against the opening balance of revenue reserves.
4. The above results were reviewed by the audit committee on
July 27, 2006 and approved by the Board of Directors at their meeting held on
July 28, 2006.
5. The previous period figures have been regrouped wherever
required.
200609
Quarter 2 :
Expenditure Includes (Increase)/Decrease in stock in Trade Rs
68.47 million Consumption of Raw and packaging Material Rs 4556.09 million
Employees Remuneration Rs 414.73 million Other expenditure Rs 1606.63 million
Tax Includes Provision for Current Tax Rs 395.38 million Deferred Tax Rs (7.13)
million Fringe Benefit Tax Rs 5.80 million EPS is Basic & Diluted Status of
Investor Complaints for the quarter ended September 30, 2006 Complaints Pending
at the beginning of the quarter Nil Complaints Received during the quarter 09
Complaints disposed off during the quarter 09 Complaints unresolved at the end
of the quarter Nil :
1. Net sales and operating income include income arising out
of processing charges for products manufactured for the joint venture unit,
Asian PPG Industries Ltd and wholly owned subsidiary, Asian Paints Industrial
Coatings Ltd lease rentals towards leasing of tinting machines to dealers and
revenue from Home Solutions operations.
2. With effect from the financial year ended March 31, 2006
the Company has discontinued the method of reporting Sales net of excise duty
expense incurred on production of finished goods pursuant to Accounting
Standard interpretation (ASI) 14 (Revised) 'Disclosure of Revenue from Sales
transactions' issued by the Institute of Chartered Accountants of India. The
excise duty expense has since been bifurcated into two components: excise duty
expense relatable to sales is reduced from Gross Sales and the balance amount
relating to the difference between the closing stock and opening stock is
recognized in the (Increase)/decrease in stock in trade'. The figures of the
previous periods have been regrouped accordingly. The same has no impact on the
profits of the Company.
3. The Company had announced a Voluntary Retirement Scheme
(VRS) in Bhandup plant. The total amount of Rs 30.82 million paid under the VRS
has been charged to the Profit and Loss account in the quarter ended September
30, 2006.
4. The Board of Directors have approved the payment of
interim dividend of Rs 5.50 per equity share of Rs 10/- each (55%) for the
financial year ending March 31, 2007.
5. The above results were reviewed by the Audit Committee on
October 27, 2006 and approved by the Board of Directors at their meeting held
on October 30, 2006.
6. The previous period figures have been regrouped wherever
required.
200612
Quarter 3 :
Expenditure Includes (Increase)/Decrease in stock in Trade
Rs 159.46 million Consumption of Raw and packaging Material Rs 4058.40 million
Employees Remuneration Rs 379.65 million Other expenditure Rs 1451.85 million
Tax Includes Provision for Current Tax Rs 323.63 million Deferred Tax Rs 0.18
million Fringe Benefit Tax Rs 7.80 million EPS is Basic & Diluted Status of
Investor Complaints for the quarter ended December 31, 2006 Complaints Pending
at the beginning of the quarter Nil Complaints Received during the quarter 11
Complaints disposed off during the quarter 11 Complaints unresolved at the end
of the quarter Nil :
1. Net sales and operating income Includes income arising
out of processing charges for products manufactured for the joint venture unit,
Asian PPG Industries Ltd., and wholly owned subsidiary, Asian Paints Industrial
Coatings Ltd., lease rentals towards leasing of tinting machines to dealers and
revenue from Home Solutions operations.
2. With effect from the financial year ended March 31, 2006
the Company has discontinued the method of reporting Sales net of excise duty
expense incurred on production of finished goods pursuant to Accounting
Standard Interpretation (ASI) 14 (Revised) 'Disclosure of Revenue from Sales
Transactions' issued by the Institute of Chartered Accountants of India. The
excise duty expense has since been bifurcated into two components: excise duty
expense relating to sales is reduced from Gross Sales and the balance amount
relating to the difference between the closing stock and opening stock is
recognized in the (Increase)/decrease in stock in trade. The figures of the
previous periods have been regrouped accordingly. The same has no impact on the
profits of the Company.
3. The Company had announced a voluntary retirement scheme
(VRS) in Bhandup plant. The Company has paid Rs 31.68 million under the VRS
upto December 31, 2006, out of which Rs 30.82 million has been charged to the
Profit and Loss account in the quarter ended September 30, 2006.
4. The above results were reviewed by the audit committee on
January 25, 2007 and approved by the Board of Directors at their meeting held
on January 29, 2007. 6. The previous period figures have been regrouped
wherever required.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
0.15
|
0.14 |
0.17 |
|
Long Term Debt Equity Ratio |
0.12
|
0.12 |
0.15 |
|
Current Ratio |
1.14
|
1.08 |
1.07 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Asset |
3.87
|
3.46 |
3.29 |
|
Inventory |
8.24
|
8.71 |
10.08 |
|
Debtors |
16.77
|
16.47 |
16.52 |
|
Interest Cover Ratio |
42.45
|
42.22 |
27.54 |
|
Operating Profit Margin (%) |
13.99
|
13.75 |
13.65 |
|
Profit Before Interest and Tax Margin (%) |
12.37
|
11.74 |
11.38 |
|
Cash Profit Margin (%) |
9.08
|
9.37 |
9.28 |
STOCK PRICES
|
Face Value |
Rs. 10/- |
|
High |
Rs.694.95/- |
|
Low |
Rs.680.00/- |
LOCAL AGENCY
FURTHER INFORMATION
RESULTS
OF OPERATIONS :
Total revenue increased to Rs. 23,192 million from Rs.19,546 million in the
previous year - a growth of 18.7%.The operating profit increased by 19.2%, from
Rs. 3,254 million to Rs. 3,878 million. The profit after tax and extraordinary
item (being provision for diminution in value of long term investments)
increased to Rs. 1,868 million from Rs. 1,735 million, representing a growth of
7.7%.
The consolidated sales and operating income increased to Rs. 30,210 million
from Rs. 25,739 million - a growth of 17.4%. Net profit after minority interest
for the group increased to Rs. 2,121 million from Rs.1,741 million,
representing a growth of 21.9%.
The analysis on the performance of the Company is discussed in the Management's
Discussion and Analysis report.
CONSOLIDATED
ACCOUNTS :
The Company, under Section 212(8) of the Companies Act, 1956 has been exempted
from the provisions of Section 212(1) and 212(3) of the Companies Act, 1956 in
respect of attaching the financial statements of the subsidiary companies in
India and abroad, both direct and indirect, to the balance sheet of the Company
for the financial year 2005-2006. Shareholders desirous of obtaining the annual
report and the financial statements of the subsidiary companies may obtain the
same upon request. However, a statement of summarized financials of all the
subsidiaries is attached along with the consolidated financial statements of
the Company. Pursuant to Accounting Standard (AS 21) issued by the Institute of
Chartered Accountants of India, Consolidated Financial Statements presented by
the Company include the financial information of all its subsidiaries.
SUBSIDIARIES :
ASIAN PAINTS INDUSTRIAL COATINGS LIMITED
Asian Paints Industrial Coatings Limited (APICL), a wholly owned subsidiary of
the Company, reported Profit Before Tax of Rs. 5.71 million for the financial
year ended 31st March, 2006 as compared to Rs. 9.97 million for the financial
year ended 31st March, 2005. The reduction is primarily on account of reduction
in gross margins as a result of increase in material costs.
During 2004-2005, APICL had acquired land in Baddi near Himachal Pradesh by
acquiring 100% Equity in Surya Powder Coating Ltd. (SPCL) for setting up the
second powder coating facility in order to cater to the increase in demand.
During the year 2005-2006, a scheme of merger of SPCL with APICL was put up to
the Hon'ble High Courts of Mumbai and Punjab & Haryana for approval which
have approved the merger.
The powder coating facility set up at Baddi commenced commercial production on
18th April, 2006. With the existing manufacturing facility at Sarigam, Gujarat
and the new facility located at Baddi, Himachal Pradesh, APICL is well placed
to service the Western and the Northern markets which constitute the bulk of
the powder coatings demand.
TECHNICAL INSTRUMENTS MANUFACTURERS
(INDIA) LIMITED :
Technical Instruments Manufacturers (India) Limited (TIM), a wholly owned
subsidiary of the Company, owns the building which houses the Company's
Corporate Office. It has no income except the rent it receives from the
Company.
During the financial year 2005-06, the Company granted a loan of Rs.100 million
to TIM for acquiring a land admeasuring to 24,308 sq.mts at Thane, Maharashtra
for setting up a research and development facility for the Company.
JOINT VENTURE WITH PPG INDUSTRIES, INC.
-ASIAN PPG INDUSTRIES LIMITED :
Asian PPG Industries Limited (APPG) a 50:50 joint venture between the Company
and PPG Industries, USA, caters to the demand in the automotive and industrial
paint segment. APPG is a supplier to almost every 2-wheeler maker in India and
has a significant position in this market. The joint venture witnessed good
year of performance. There was an increase of 17.7% in Sales and 6.16% in
Profits After Tax for the current financial year as compared to the previous
financial year. The joint venture Company also declared an interim dividend of
Re. 1.40 per equity share on 31st March, 2006.
OVERSEAS SUBSIDIARIES :
During the year 2005, the sales of the international operations grew by 11% to
touch Rs. 5,500 million (US $124.70 million). For the year under review, the
revenue from paint sales of Berger International Limited (BIL), a subsidiary of
the Company listed on the Singapore Stock Exchange, increased by 6.5% to S$
118.11 million (equivalent to Rs. 3,140.39 million). Without considering the
exchange rate impact and the divestment in Malta in 2004, paint sales have
grown by 9.3%. BIL has incurred a loss of S$ 5.5 million (equivalent to Rs.
146.24 million) for the year under review as compared to profit of S$ 2.2
million (equivalent to Rs. 58.94 million) for the previous year due to higher
material cost, higher provision for tax for prior years and higher share of
loss from the associate company. The South East Asia region underperformed in
terms of operating profit and is the major contributor to the loss reported by
international operations.
Another subsidiary of the Company, SCIB Chemical, S.A.E., Egypt has done well
and has reported a profit of US $ 0.98 million (equivalent to Rs. 43.22
million) against a profit of US $ 0.25 million (equivalent to Rs. 11.32
million) of last year.
The Company has made a provision of Rs. 336 million towards diminution in value
of its long term investment in Asian Paints (International) Limited, a wholly
owned subsidiary of the Company, based on the management's assessment of the
fair value of its investment. This item has been treated as an extraordinary
item. The Company will continue to evaluate its portfolio at the end of every
year to test for impairment. The management will continue to take all feasible
steps as necessary to enhance the performance and the networth of its overseas
subsidiaries. Asian Paints (International) Limited and its subsidiary, Berger International
Limited, have also provided for impairment of their long term investments in
certain subsidiaries in the current year.
The Management's Discussion and Analysis has further dealt with the
international business.
INDUSTRIAL COATINGS PLANT :
In the last annual report, it was mentioned that the Company was setting up a
greenfield industrial coatings manufacturing facility at Taloja, Maharashtra,
to meet increase in industrial coatings demand and enhance the servicing
capability of the Company. Construction of the manufacturing facility has been
on schedule and the Company plans to commission the first phase of the plant
towards the end of the third quarter of the current financial year. The first
phase having a capacity of 14,000 KL per annum will be increased to 30,000 KL
in a phased manner.
CHANGE OF NAME :
The Company had proposed to change its name to Asian Paints Limited in
line with its global ambitions.Approval of the shareholders for the said change
of name by way of a Special Resolution in accordance with Section 21 of the
Companies Act, 1956, was obtained through postal ballot under Section 192A of
the Comp- anies Act, 1956 during the financial year 2005-06. The Company has
also received a fresh Certificate of Incorporation from the Registrar of
Companies, Mumbai, dated 12th July, 2005.
Fixed Assets :
Freehold Land
Leasehold Land
Buildings
Plant and Machinery
Scientific Research
:
Equipment
Buildings
Furniture andOffice
Equipment
Vehicles
Leased Assets :
Equipment
As Per Website Details :
Asian Paints Ltd (formerly known as Asian Paints India Ltd
[APIL]), promoted in 1942 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 has become the 10th
largest decorative paint company in the world. Asian Paints operates in 22
countries across the world. It has manufacturing facilities in each of these
countries and is the largest paint company in nine overseas markets. Asian
Paints operates in five regions across the world viz. South Asia, South East
Asia, South Pacific, Middle East and Caribbean region through the four
corporate brands viz. Asian Paints, Berger International, SCIB Paints and Apco
Coatings. In 10 markets it operates through its subsidiary, Berger
International Limited and in Egypt through SCIB Chemical SAE.
Over the course of 25 years Asian Paints became a corporate force and India's
leading paints company. Driven by its strong consumer-focus and innovative
spirit, the company has been the market leader in paints since 1968. Today it
is double the size of any other paint company in India. Asian Paints
manufactures a wide range of paints for Decorative and Industrial use. The
company has presence in both Decorative and Industrial Coating segment of the
Paint business. In Industrial coating segment which comprises Automotive
Coating, powder coating and protective coating, APIL serves/operates directly
in the protective coating and has presence in other two sub - segments i.e
Automotive Coating and Powder coating through Asian PPG Inds(a JV Co. with PPG
of US) and Asian Paints Industrial Coatings Ltd(a 100% subsidiary of APIL).
APIL's product range includes Wall paints, Metal paints, Wood Finishes, Primers
and others. Vertical integration has seen the company diversify into specialty
products such as Pentaerythritol and Phthalic Anhydride. These are used in
paints, plasticizers, inks and dyes.
Apart from offering the customers a wide range of decorative and
industrial paints, the company even custom-creates products to meet specific
needs. APIL'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 boasts state-of-the-art manufacturing plants for paints at
Bhandup (Maharashtra), Ankleshwar (Gujarat), Patancheru (Andhra Pradesh),
Kasna(Uttar Pradesh), Sriperumbudur(Tamil Nadu) and all these paint plants are
ISO 14001 certified. The company has manufacturing plant for Phthalic Anhydride
and Pentaerythritol at Ankleshwar and Cuddalore respectively.
Forbes Global magazine USA ranked Asian Paints among the 200 Best Small
Companies in the World for 2002 and 2003 and presented the 'Best under a
Billion' award, to the company. Asian Paints is the only paint company in the
world to receive this recognition. One of the country's leading business
magazine 'Business Today' in Feb 2001 ranked Asian Paints as the Ninth Best
Employer in India. A survey carried out by 'Economic Times' in January 2000,
ranked Asian Paints as the Fourth most admired company across industries in
India.
To keep abreast of world technology and to protect its competitive edge,
Asian Paints has a 50:50 joint venture with Pittsburgh Paints and Glass
Industries (PPG) of USA, the world leader in automotive coatings, to meet the
increasing demand of the Indian automotive industry. Another wholly owned
subsidiary, Asian Paints Industrial Coatings Limited has been set up to cater
to the powder coatings market which is one of the fastest growing segments in the
industrial coatings market. This wholly owned subsidiary of Asian Paints has
entered into a tie-up with Canada-based Protech Chemicals which is one of the
top ten powder coatings companies in the world for technological know-how for
powder coatings and service customers with a wider coatings in this
segment.
During 1999-2000, the resins manufacturing capacity was increased by 3800
tons per annum and Phthalic plant was also increased by 400 tons per
annum.
In the compnies first-ever acquisition overseas, Asian Paints Ltd (APL)
acquired a 76 per cent equity stake in Sri Lanka-based Delmege Forsyth & Co
(Paints) Ltd
On 4th September 2000, the company allotted bonus shares to its shareholders in
the ratio of 3 equity shares for every 5 equity shares held. During 2000-2001,
the company was in the process of getting permission from various pollution
control boards for increasing the capacity of overall paints facilities from
168900 tonnes per annum to 228900 tonnes per annum.
PRESS RELESE :
Asian Paints announces second interim dividend of Rs. 6.50
per share (65%) :
Mumbai, March 13, 2007: The Board of Directors of Asian
Paints Limited has today recommended the payment of the second interim dividend
of Rs. 6.50 per equity share of Rs 10/- each (65%) for the financial year
ending March 31, 2007.
The Company, earlier, distributed an interim dividend Rs.
5.50 per share in November 2006. Thus the Total dividend announced so far for
FY 2006-2007 is Rs. 12/- per equity share.
About Asian Paints:
Asian Paints is India's largest paint company with a group
turnover of INR 30.2 billion (USD 680 million). Asian Paints along with its
subsidiaries has operations in 21 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:
Jason/ Rajdeep
Asian Paints Limited
Phone: +91-22-39818547
Email: proffice@asianpaints.com
ASIAN
PAINTS CONSOLIDATED NET PROFIT INCREASES BY 14.0% FOR THE QUARTER
• Consolidated Net Sales up 16.6 % at Rs. 9,356 million
• Indian Paint Business grew by 13.3 % to Rs. 7250 million
for the quarter
• Consolidated Net Profit for the nine months increased by
29.5 % to Rs. 2144 million
• All business units register good growth for the quarter
Mumbai, January 29, 2007: Asian
Paints today announced their financial results for the third quarter ended Dec
31, 2006.
Asian
Paints Consolidated Results : Q3-FY’2007 :
For the quarter ended Dec 31, 2006, on consolidation of accounts
of the subsidiaries and joint venture of Asian Paints – Net Profit of the Group
has increased by 14.0 % to Rs. 713.9 million from Rs. 626.3 million as compared
to the previous corresponding quarter. Sales & Operating Income has risen
by 16.6% to Rs. 9356.4 million from Rs. 8023.3 million. Profit before
depreciation interest and tax (PBDIT) for the group has increased by 11.7 % to
Rs. 1310.8 million from Rs. 1173.6 million. Profit before Tax after goodwill
has increased by 13.4 % to Rs. 1107.5 million from Rs. 976.4 million.
Asian
Paints Standalone Results : Q3-FY’2007 :
For the quarter ended Dec 31, 2006 Net Profit on a
standalone basis increased by 7.1 % to Rs. 653.1 million
from Rs. 609.6 million.
Net Sales increased by 12.9% to Rs. 7059.7 million from Rs. 6254.7 million.
PBDIT for the
quarter increased by 5.9 % to Rs. 1118.1 million from Rs.
1055.8 million. Profit before tax and extraordinary item
was Rs. 982.9 million as compared to Rs. 926.7 million for
the previous corresponding quarter, an increase of 6.1 %.
Commenting on the results, Mr. Ashwin Dani, Vice Chairman
& Managing Director, Asian Paints Limited, said “The performance of the
Indian paints business has been good during the quarter. Due to bulk of the
festival sales taking place in the second quarter, sales growth in India for
this quarter was modest in relation to the previous quarters and was entirely
expected. Demand conditions after Diwali continue to be good. The company effected
a price increase in mid-January for its Decorative coatings products. We remain
optimistic regarding sales growth in the fourth quarter. The international
business has grown in excess of 30 % for the quarter due to an excellent
performance by the Middle East region.
Asian
Paints Consolidated Results, 9M- FY’2007:
For the nine months ended 31 December 2006, Asian Paints
group – Sales & operating Income has increased by 20.2% to Rs. 27,110
million from Rs. 22,556 million. Profit before depreciation interest and tax
(PBDIT) for the group has increased by 20.3 % to Rs. 3847.5 million from Rs.
3198.8 million. Profit before Tax after goodwill has increased by 24.2 % to Rs.
3258.7million from Rs.2623.2 million. Net profit after minority interest has increased
by 29.5 % to Rs. 2144.2 million from Rs. 1655.7 million.
Asian
Paints Standalone Results : 9M - FY’07 :
For the nine months ended Dec 31, 2006 Net Profit on a
standalone basis increased by 20.7 % to Rs. 2008.9
million from Rs. 1664.9 million. Net Sales increased by
19.4% to Rs.20,942.7 million from Rs. 17,546.7 million.
PBDIT increased by 17.2% to Rs. 3424.6 million from Rs.
2921.5 million. Profit before tax wasRs.3034.4 million
compared to Rs. 2554.5 million for the corresponding
nine-month period, an increase of 18.8 %.
About
Asian Paints :
Asian Paints is India's largest paint company and ranked
with a turnover of INR 30.2 billion (USD 680 million).
Asian Paints along with its subsidiaries has operations in 21
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 professiona-
lism, fast track growth and building shareholder equity.
For further information, please contact
:
Jason/Arun
Corporate
Communications
Asian
Paints Limited
Phone:
+91-22-39818549; Email: proffice@asianpaints.com
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 :
Their
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.
Their 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.42.90 |
|
UK Pound |
1 |
Rs.84.69 |
|
Euro |
1 |
Rs.57.21 |
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
EXPLANATIONS
|
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|