MIRA INFORM REPORT

 

 

Report Date :

10.12.2007

 

IDENTIFICATION DETAILS

 

Name :

ASIAN PPG INDUSTRIES LIMITED

 

 

Registered Office :

6  A, Shanti Nagar Estate, Vakola Pipeline Road, Santacruz (East), Mumbai – 400 055, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

19.02.1997

 

 

Com. Reg. No.:

11-105961

 

 

CIN No.:

[Company Identification No.]

U24200MH1997PLC105961

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMA11672D

 

 

Legal Form :

A closely held Public Limited Liability Company.

 

 

Line of Business :

Manufacturing and Marketing of paints, varnishes, enamels or lacquers. 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 4200000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well-established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments.

 

The company can be normal for business dealings at usual trade terms and conditions.

 

LOCATIONS

 

Registered Office :

6  A, Shanti Nagar Estate, Vakola Pipeline Road, Santacruz (East), Mumbai – 400 055, Maharashtra, India

Tel. No.:

91-22-56958000 / 39818000 / 67538700

Fax No.:

91-22-56958888 / 26528044

E-Mail :

asol@vsnl.com

sagar.khade@asianppg.com

Website :

http://www.asianppg.com

 

 

Administrative Office :

158, Vidyanagri Marg, Dani Wooltex Compound, Kalina, Santacruz (East), Mumbai – 400 098, Maharashtra, INDIA.

Tel. No.:

91-22-26526387 / 26528001

Fax No.:

91-22-26528044

Email :

mailto:chetan@asiasppg.com

 

 

Factory:

·         APPG – Ankleshwar, 2602, GIDC Industrial Estate, Ankleshwar – 393 002, Gujarat, India

 

·         APPG – LBS Marg, Post Box No. 7318, Bhandup, Mumbai – 400 078, Maharashtra

 

·         APPG _ A -1, UPSIDC Industrial Area, Kasna II Village, greater Noida , District G Budh Nagar Noida – 203 207, Uttar Pradesh, India

 

·         APPG , P I Nos. 50-55, industrial Development Area, Phase –II, Patancheru , district Medaka, Andhra Pradesh, India 

 

·         Located at Chakan in Pune, Maharashtra (under construction)

 

 

Promoters Company  :
  • Asian Paints (India) Limited
  • PPG Industries Securities, Inc

 

 

Branches :

Located in all Capital Cities of India

 

DIRECTORS

 

Name :

Mr. John R. Alexander

Designation :

Director

Address :

403, Alpen Court, Wexford, USA - 15090

Date of Birth/Age :

31.08.1955

Date of Appointment :

02.11.2004

 

 

Name :

Mr. Michael Ludlow

Designation :

Director

Address :

306, Golf Side Drive, Waxford, PA 15990, USA

Date of Appointment :

01.04.1999

 

 

Name :

Mr Ashwin C Choksi

Designation :

Director

Address :

11-A, Jeevan Asha, 60 A, Peddar Road, Mumbai – 400 026, India

Date of Birth/Age :

01.06.1943

Date of Appointment :

01.08.1997

 

 

Name :

Mr Ashwin S. Dani

Designation :

Director

Address :

Home Villa Co-operative Society Limited, 48, Krishna Sanghi Path, Mumbai – 400 007, India.

Date of Birth/Age :

24.10.1942

Date of Appointment :

01.08.1997

 

 

Name :

Mr. Dennis A Kovalsky

Designation :

Director

Address :

1444 Fairfax, Birmingham - 48009, USA

Date of Birth/Age :

09.05.1951

Date of Appointment :

01.03.2003

 

 

Name :

Mr. Rich Alexander

Designation :

Director

 

 

Name :

Mr. Vincent Robin

Designation :

Alternate Director

 

 

Name :

Mr. Viktor Sekmakas

Designation :

Alternate Director

 

 

Name :

Mr. Manish Mahendra Choksi

Designation :

Director

Address :

402, Shiv Thirth, B Desai Road, Mumbai – 400 026, Maharashtra

Date of Birth/Age :

12.09.1967

Date of Appointment :

08.08.2007

 

 

Name :

Mr. Sagar Khade

Designation :

Director

Address :

C -9, Royal Diamond, Park Housing Co-Operative Society Limited, Vakola, Mumbai – 400 055, Maharashtra

Date of Birth/Age :

06.05.1979

Date of Appointment :

03.02.2006

 

KEY EXECUTIVES

 

Name :

Mr. V. S. Ram

Designation :

Chief Executive Officer

 

 

Name :

Mr. Yogesh R. Shroff

Designation :

Company Secretary

Address :

701-A, Poonam Residency I, Holy Cross Road, Extn. I. C. Colony, Borivali (West), Mumbai – 400 103

Date of Appointment :

14.08.2002

 

 

Name :

Mr. Sagar S. Khade

Designation :

Secretary

Address :

C-9, Royal Diamond Park Housing Cooperative Society Ltd., Vakola, Mumbai – 400055, Maharashtra

 

MAJOR SHAREHOLDERS

 

Names of Shareholders

No. of Shares

Asian Paints (India) Limited (Mumbai)

14625000

PPG Industries Securities (USA)

14625000

 

 

Category

Percentage

1. Foreign Holding (Foreign Institutional Investor, Foreign Companies Foreign Financial Institution, Non-Resident Indian Or Overseas Corporate Bodies.

50.%

2. Bodies corporate

50 %

Total

100 %

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing and Marketing of paints, varnishes, enamels or lacquers. 

 

 

Products :

Item Code No (ITC Code)               Products Description        

 

32089003                                       Synthetic Enamel, Other

                                                       Colours  

Imports :

 

Products :

Raw materials

Countries :

USA and BASF, Germany against L/C terms.

 

GENERAL INFORMATION

 

Customers :

·         Auto Giants.

·         Bajaj Auto Limited

·         Bajaj Tempo limited

·         Fiat India limited

·         Ford India limited

·         General Motors India Limited

·         Hero Honda Motors Limited

·         Honda Siel Cars (India) Limited

·         Hyundai Motor India Limited

·         Kinetic motors company Limited

·         Mahindra and Mahindra limited

·         New Holland Tractor India private limited

·         Steel Strips Wheels Limited

 

 

No. of Employees :

Around 450 (50 persons in office and 400 persons in factory.)

 

 

Bankers :

·         State Bank of India, Killick House, Fort, Mumbai – 400 001

 

·         State Bank of India

Madame Cama Road, Nariman Point , Mumbai – 400 001, Maharashtra 

 

·         State Bank of India, Corporate accounts group, central office, express Towers, 20th Floor, Nariman Point, Mumbai – 400 021

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

C. C. Chokshi  & Company

Chartered Accountants

Address 1:

Mafatlal House, Backbay Reclamation, Mumbai – 400 020, Maharashtra

Address 2:

12, Dr. Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai – 400 018, Maharashtra

Tel. No.:

Tel No. 91-22-22854330

 

 

Associates/Subsidiaries :

CIN of the company: U24222TN1986PTC012894

Name of the Company: Faaber Paints Private limited

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

40000000

Equity Share

Rs.10/- Each

Rs.400.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

29250000

Equity Share

Rs.10/- Each

Rs.292.500 millions

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2007

31.03.2006

31.03.2005

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

292.500

292.500

292.500

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

739.400

601.170

440.430

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

1031.900

893.670

732.930

LOAN FUNDS

 

 

 

1] Secured Loans

229.440

0.000

33.310

2] Unsecured Loans

0.000

5.270

5.740

TOTAL BORROWING

229.440

5.270

39.050

DEFERRED TAX LIABILITIES

16.040

0.000

0.000

 

 

 

 

TOTAL

1277.380

898.940

771.980

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

464.740

45.060

44.650

Capital work-in-progress

1.100

0.000

0.510

 

 

 

 

INVESTMENT

40.100

263.700

196.740

DEFERREX TAX ASSETS

0.000

 

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
806.300
530.770

469.810

 

Sundry Debtors
550.530
435.360

335.470

 

Cash & Bank Balances
50.880
45.340

29.340

 

Other Current Assets
0.000
0.000

0.000

 

Loans & Advances
130.690
42.670

50.930

Total Current Assets
1538.400

1054.140

885.550

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
686.450
463.750

350.740

 

Provisions
80.510
0.210

4.730

Total Current Liabilities
766.960

463.960

355.470

Net Current Assets
771.440

590.180

530.080

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

1277.380

898.940

771.980

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2007

31.03.2006

31.03.2005

 

 

 

 

Sales Turnover

2934.770

2385.580

2033.030

Other Income

24.300

17.860

13.690

Total Income

2959.070

2403.440

2046.720

 

 

 

 

Profit/(Loss) Before Tax

284.120

319.430

305.240

Provision for Taxation

95.500

0.000

0.000

Profit/(Loss) After Tax

188.620

319.430

305.240

 

 

 

 

Export Value

1.860

3.180

1.440

 

 

 

 

Import Value

NA

NA

492.320

 

 

 

 

Expenditures :

 

 

 

 

Raw Material Consumed

1561.110

1273.580

1070.810

 

Purchases made for re-sale

409.320

205.600

180.130

 

Consumption of stores and spares parts

143.170

120.180

0.000

 

Increase/(Decrease) in Finished Goods

[147.830]

[47.110]

0.000

 

Salaries, Wages, Bonus, etc.

120.940

101.900

82.120

 

Payment to Auditors

1.160

0.860

0.770

 

Interest

9.040

2.800

2.810

 

Insurance Expenses

5.780

3.890

2.880

 

Depreciation & Amortization

5.570

3.740

0.000

 

Other Expenditure

568.550

432.950

406.710

Total Expenditure

2676.810

2098.390

1746.230

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2007

31.03.2006

31.03.2005

PAT / Total Income

(%)
6.37
13.29

14.91

 

 
 
 

 

Net Profit Margin

(PBT/Sales)

(%)
9.68
13.39

15.01

 

 
 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)
14.17
29.06

32.81

 

 
 
 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.27
0.35

0.41

 

 
 
 

 

Debt Equity Ratio

(Total Liability/Networth)

 
0.96
0.52

0.53

 

 
 
 

 

Current Ratio

(Current Asset/Current Liability)

 
2.00
2.27

2.49

 

LOCAL AGENCY FURTHER INFORMATION

 

Form 8:-

 

Name of the company

ASIAN PPG INDUSTRIES LIMITED

Presented By

V.S. Ram

1) Date and description of instrument creating the change

Agreement of hypothecation of goods and assets for working capital loan, executed on 10th august 1999 with State Bank of India

2) Amount secured by the charge/amount owing on the securities of charge

RS.300.000 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

First Charge on moveable assets and Book Debts

1) RM/Finished Goods – 24%

2) Stock in Process – 33%

3) Book Debts – 50%

4) Stores & Spares – 60 %

4) Gist of the terms and conditions and extent and operation of the charge.

As Mentioned in the Agreement

5) Name and Address and description of the person entitled to the charge.

State Bank of India, Corporate accounts group, central office, express Towers, 20th Floor, Nariman Point, Mumbai – 400 021

6) Date  and brief description of instrument modifying the charge

Charge has been modified by reducing the working capital limit from RS.370.000 millions to Rs. 300.000 millions on 27th march 2001

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

Working capital limits have been revised to Rs.300.00 millions with effect from 27th march 20017

 

Name of the company

ASIAN PPG INDUSTRIES LIMITED

Presented By

Mr. V S Ram

1) Date and description of instrument creating the change

Agreement of hypothecation of goods and assets for working capital loan, executed on 10th august 1999 with State Bank of India

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 370.000 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

First Charge on moveable assets and Book Debts

1) RM/Finished Goods – 24%

2) Stock in Process – 33%

3) Book Debts – 50%

4) Stores & Spares – 60 %

4) Gist of the terms and conditions and extent and operation of the charge.

As mentioned in the agreement

5) Name and Address and description of the person entitled to the charge.

State Bank Of India

Madame Cama Road, Nariman Point , Mumbai – 400 001, Maharashtra 

6) Date  and brief description of instrument modifying the charge

Original Document

 

FIXED ASSTES;

·         Leasehold land

·         Plant and machinery

·         Computers

·         Furniture and fixtures

·         Office Equipments

·         Vehicles.

 

Profile :-

Subject, a joint venture between Asian Paints (India) Limited and PPG Industries, Inc. USA with 50:50 equity sharing was established in March 1997 with the objective of providing solutions to the paint requirements of Indian Automobile manufacturers. The joint venture brought together two leading companies with strengths in technology, manufacturing and customer insight.

 

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.39.41

UK Pound

1

Rs.79.81

Euro

1

Rs.57.58

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

9

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--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

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

55

 

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

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions