MIRA
INFORM REPORT
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Report Date : |
04.05.2007 |
IDENTIFICATION DETAILS
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Name : |
ASIAN PPG INDUSTRIES LIMITED |
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Registered Office : |
6 A, Shanti Nagar Estate, Vakola Pipeline Road, Santacruz (E), Mumbai
– 400 055, Maharashtra |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
19.02.1997 |
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Com. Reg. No.: |
11-105961 |
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CIN No.: [Company
Identification No.] |
U24200MH1997PLC105961 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMA11672D |
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Legal Form : |
Subject is a closely held public limited liability company. |
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Line of Business : |
Manufacturing and Marketing of paints,
varnishes, enamels or lacquers. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 3574000 |
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Status : |
Satisfactory |
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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 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 Considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
6 A, Shanti Nagar Estate, Vakola Pipeline Road, Santacruz (E), Mumbai
– 400 055, Maharashtra |
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Tel. No.: |
91-22-39818000 |
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Fax No.: |
91-22-66958888 |
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E-Mail : |
asol@vsnl.com
/ sagar.khade@asianppg.com |
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Administrative Office : |
158, Vidyanagri Marg, Dani Wooltex Compound, Kalina, Santacruz (East),
Mumbai – 400 098, |
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Fax No.: |
91-22-26528044 |
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Factory 1 : |
Located at Chakan in Pune, |
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Branches : |
Located in all Capital Cities of |
DIRECTORS
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Name : |
Mr. John R. Alexander |
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Designation : |
Director |
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Address : |
403, |
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Name : |
Mr. Michael Ludlow |
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Designation : |
Director |
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Address : |
306, Golf Side Drive, |
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Date of Appointment : |
1st April, 1999 |
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Name : |
Mr Ashwin C Choksi |
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Designation : |
Director |
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Address : |
11-A, Jeevan Asha, 60 A, |
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Date of Appointment : |
1st August, 1997 |
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Name : |
Mr Ashwin S. Dani |
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Designation : |
Director |
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Address : |
Home Villa Co-operative Society Limited, 48, Krishna Sanghi Path,
Mumbai – 400 007, |
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Date of Appointment : |
1st August, 1997 |
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Name : |
Mr. Sagar S. Khade |
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Designation : |
Secretary |
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Address : |
C-9, Royal Diamond Park Housing Cooperative Society Ltd., Vakola,
Mumbai – 400055, |
KEY EXECUTIVES
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Name : |
Mr. V. S. Ram |
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Designation : |
Chief Executive Officer |
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Name : |
Mr. Yogesh R. Shroff |
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Designation : |
Company Secretary |
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Address : |
701-A, Poonam Residency I, |
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Date of Appointment : |
14.08.2002 |
MAJOR SHAREHOLDERS
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Names of Shareholders |
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No. of Shares |
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Asian Paints ( |
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14625000 |
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PPG Industries Securities ( |
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14625000 |
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Category |
Percentage |
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1. Foreign
holding (Foreign institutional investor, foreign companies foreign financial
institution, Non-resident Indian or Overseas corporate bodies. |
50.% |
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2. Bodies
corporate |
50 % |
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Total |
100 % |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and Marketing of paints,
varnishes, enamels or lacquers. |
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Products : |
Item Code No
(ITC Code) Products
Description |
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32089003 Synthetic Enamel, Other
Colours |
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Imports : |
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Products : |
Raw materials |
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Countries : |
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GENERAL INFORMATION
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Customers : |
Auto Giants. |
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No. of Employees : |
Around 450 (50 persons in office and 400 persons in factory.) |
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Bankers : |
State Bank of |
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Facilities : |
--- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
C. C. Chokshi & Company Chartered Accountants |
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Address : |
Mafatlal House, Backbay Reclamation, Mumbai – 400 020 |
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Tel. No.: |
Tel No. 91-22-22854330 |
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Associate : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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40000000 |
Equity Share |
Rs.10/- Each |
Rs.400.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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29250000 |
Equity Share |
Rs.10/- Each |
Rs.292.500
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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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 |
292.500 |
292.500 |
292.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
601.170 |
440.430 |
277.200 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
893.670 |
732.930 |
569.700 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
33.310 |
44.900 |
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2] Unsecured Loans |
5.270 |
5.740 |
0.000 |
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TOTAL BORROWING |
5.270 |
39.050 |
44.900 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
898.940 |
771.980 |
614.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
45.060 |
44.650 |
46.400 |
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Capital work-in-progress |
0.000 |
0.510 |
0.000 |
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INVESTMENT |
263.700 |
196.740 |
150.800 |
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DEFERREX TAX ASSETS |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
530.770
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469.810 |
391.200 |
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Sundry Debtors |
435.360
|
335.470 |
257.700 |
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Cash & Bank Balances |
45.340
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29.340 |
26.800 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
42.670
|
50.930 |
49.700 |
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Total
Current Assets |
1054.140
|
885.550 |
725.400 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
463.750
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350.740 |
270.200 |
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Provisions |
0.210
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4.730 |
37.800 |
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Total
Current Liabilities |
463.960
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355.470 |
308.000 |
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Net Current Assets |
590.180
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530.080 |
417.400 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
898.940 |
771.980 |
614.600 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
2385.580 |
2033.030 |
1828.300 |
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Other Income |
17.860 |
13.690 |
4.300 |
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Total Income |
2403.440 |
2046.720 |
1832.600 |
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Profit/(Loss) Before Tax |
319.430 |
305.240 |
179.100 |
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Provision for Taxation |
0.000 |
0.000 |
67.500 |
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Profit/(Loss) After Tax |
319.430 |
305.240 |
111.600 |
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Expenditures : |
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Manufacturing Expenses |
0.000 |
0.000 |
142.000 |
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Administrative Expenses |
0.000 |
0.000 |
136.200 |
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Raw Material Consumed |
1273.580 |
1070.810 |
991.900 |
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Purchase made for re-sale |
205.600 |
180.130 |
0.000 |
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Salaries, Wages, Bonus, etc. |
101.900 |
82.120 |
40.500 |
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Payment to Auditors |
0.860 |
0.770 |
0.000 |
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Interest |
2.800 |
2.810 |
2.100 |
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Insurance Expenses |
3.890 |
2.880 |
0.000 |
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Depreciation & Amortization |
0.000 |
0.000 |
4.400 |
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Other Expenditure |
498.560 |
406.710 |
100.300 |
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Total Expenditure |
2087.190 |
1746.230 |
1417.400 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
13.29
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14.91 |
6.08 |
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Net Profit Margin (PBT/Sales) |
(%) |
13.39
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15.01 |
9.79 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
29.06
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32.81 |
23.20 |
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Return on Investment (ROI) (PBT/Networth) |
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0.35
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0.41 |
0.31 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.52
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0.53 |
0.61 |
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Current Ratio (Current Asset/Current Liability) |
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2.27
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2.49 |
2.35 |
LOCAL AGENCY FURTHER INFORMATION
Bankers Charges
Report as per Registry
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Name of the company |
ASIAN PPG INDUSTRIES LIMITED |
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Presented By |
V.S. Ram |
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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 |
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2) Amount secured by the charge/amount owing on the securities of charge |
RS.300.000
millions |
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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 % |
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4) Gist of the terms and conditions and extent and operation of the charge. |
As Mentioned in
the Agreement |
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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 |
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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 |
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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 |
Trade Reference
- General
Motors (
- Hyundai
Motors, Mumbai
- BASF,
Fixed Assets
- Land
- Plant &
Machinery
- Computers
- Furniture
& Fixtures
- Office
Equipments
- Vehicles.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.40.93 |
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|
1 |
Rs.81.20 |
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Euro |
1 |
Rs.55.42 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
6 |
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OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
9 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
6 |
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--CREDIT LINES |
1~10 |
6 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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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 |
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|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
|
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 |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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