MIRA
INFORM REPORT
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Report Date : |
28.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
BERGER PAINTS INDIA LIMITED |
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Registered Office : |
Berger House, 129 Park Street, Kolkata – 700 017, West Bengal |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
17.12. 1923 |
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Com. Reg. No.: |
21-4793 |
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CIN No.: [Company
Identification No.] |
U74224WB1923PTC004793 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALB08557D |
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PAN No.: [Permanent
Account No.] |
AABCB0976E |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturing and Marketing of Synthetic Resins and Paints, Varnishes, Enamels, etc. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 11034000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established company having fine track. Available information indicates high financial responsibility of the company. Financial position is good. Payments are correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office/ Factory : |
Berger House, 129 Park Street, Kolkata – 700 017, West Bengal, India |
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Tel. No.: |
91-33-22299724-28/22296005/22296006/ 22296016/22003546–48 |
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Fax No.: |
91-33-22499009/22499729/22003549 |
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E-Mail : |
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Website : |
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Telex : |
021-5791 |
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Head Office : |
Berger House, 129 Park Street, Kolkata – 700 017, West Bengal, India |
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Tel. No.: |
91-33-22299724 (5 lines) / 22996005 / 22296006 / 22296016 |
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Fax No.: |
91-33-22499729 / 22499009 |
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E-Mail : |
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Website : |
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Plant 1 : |
14 & 15 Swarnamoyee Road, P. O. Botanic Garden, Howrah – 711 103, West Bengal, India |
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Tel. No.: |
91-33-2668 4706 (4 lines) |
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Fax No.: |
91-33-2668 4709 |
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Plant 2 : |
RS No. 53-56 Pandasozhanallur, Village – Nettapakkam Commune, Pondicherry – 605 106, Tamil Nadu, India |
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Tel. No.: |
91-431-2699574/143 |
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Fax No.: |
91-431-2699171 |
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Plant 3 : |
316-317, Kundaim Industrial Estate, Kundaim, North Goa, India |
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Tel. No.: |
91-832-2395610/6407 |
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Fax No.: |
91-832-2395663 |
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Plant 4: |
38A, Industrial Area, Bulandshahar Road, Sikandrabad, Uttar Pradesh, India |
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Tel. No.: |
91-5735-22384/249 |
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Additional Units : |
Rishra Jammu, India |
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Depots : |
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DIRECTORS
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Name : |
Mr. Kuldip Singh Dhingra |
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Designation : |
Chairman |
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Name : |
Mr. Gurbachan Singh Dhingra |
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Designation : |
Vice Chairman |
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Name : |
Mr. Subir Bose |
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Designation : |
Managing Director |
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Name : |
Mr. Anil Bhalla |
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Designation : |
Director |
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Name : |
Mr. Kamal Ranjan Das |
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Designation : |
Director |
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Name : |
Mr. Gurcharan Das |
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Designation : |
Additional Director |
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Name : |
Mr. Naresh Gujral |
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Designation : |
Director |
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Name : |
Mr. Rajive Sawhney |
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Designation : |
Director |
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Name : |
Dr. (Mrs.) Isher Judge Ahluwalia |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Subir Bose |
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Designation : |
Managing Director
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Date of Birth/Age : |
56 years |
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Qualification : |
B.Tech., PGDBA |
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Experience : |
35 years |
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Date of Appointment : |
9th
July, 1984 |
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Other Directorship : |
Marketing
manager, Abucon Nigeria Limited |
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Name : |
Mr. S. K. Biswas |
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Designation : |
Senior Vice
President and Company Secretary |
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Name : |
Mr. Aniruddha Sen
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Designation : |
Vice President
and Company Secretary |
SHAREHOLDING
PATTERN
(As on 31.12.2007)
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Category
of Shareholders |
No.
of Shares |
%
of Holding |
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Shareholding of
Promoter and Promoter Group2 |
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Indian |
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Individuals/ Hindu Undivided Family |
20055648 |
6.29 |
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Bodies Corporate |
188813428 |
59.21 |
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Sub Total(A)(1) |
208869076 |
65.50 |
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Foreign |
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Bodies Corporate |
25853760 |
8.11 |
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Sub Total(A)(2) |
25853760 |
8.11 |
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Total
Shareholding of Promoter and Promoter Group (A)= (A)(1)+(A)(2) |
234722836 |
73.61 |
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Public
shareholding |
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Institutions |
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Mutual Funds/ UTI |
8467334 |
2.66 |
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Financial Institutions / Banks |
106652 |
0.03 |
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Insurance Companies |
17032440 |
5.34 |
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Foreign Institutional Investors |
8256651 |
2.59 |
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Sub-Total (B)(1) |
33863077 |
10.62 |
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Non-institutions |
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Bodies Corporate |
7254614 |
2.28 |
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Individuals |
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Individuals -i. Individual shareholders
holding nominal share capital up to Rs 0.100 million |
40366360 |
12.66 |
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ii. Individual shareholders holding nominal share capital in excess of Rs. 0.100 million |
1460279 |
0.46 |
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Non Resident Individual |
608113 |
0.19 |
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Clearing Members |
559995 |
0.17 |
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Trust |
37190 |
0.01 |
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Sub-Total (B)(2) |
50286551 |
15.77 |
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Total Public
Shareholding (B)= (B)(1)+(B)(2) |
84149628 |
26.39 |
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TOTAL (A)+(B) |
318872464 |
100.00 |
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GRAND TOTAL
(A)+(B)+(C) |
318872464 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and Marketing of Synthetic Resins and Paints, Varnishes, Enamels, etc. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
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Installed
Capacity |
Actual
Production |
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Synthetic Resin |
MT |
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21396 |
16984 |
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Paints, Varnishes, Enamels, etc. Liquid Non-Liquid |
MT MT |
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157946 |
100688 28630 |
Notes:
(1) Installed Capacity estimated on a two/three shift basis as applicable
and is as certified by the Company's
Technical Expert.
(2) Conversion factor from KL to MT is as certified by the Company's
Technical Expert.
(3) Closing Stock of Synthetic Resin is after deducting quantity used in
own production (as captive consumption)
2006-07:16640 MT
(2005-06:15321 MT).
(4) Value of Stocks of Synthetic Resin is included in Work-in-Process
appearing in Schedule 8.
(5) Synthetic Resin quantities are in terms of solid resins.
(6) Production does not include production from Raw Materials processed
from outside 49,049 MT (2005-06:
47,989 MT).
(7) Sales, Opening Stocks and Closing Stocks include goods processed and
purchased from outside.
(8) Closing Stocks are after adjustment of losses including
shortage/excess.
GENERAL
INFORMATION
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Suppliers : |
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No. of Employees : |
1732 |
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Bankers : |
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Facilities : |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Lovelock and Lewes Chartered Accountants |
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Associates : |
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Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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325000000 |
Ordinary Shares |
Rs.2/- each |
Rs. 650.000 millions |
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Issued Capital :
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No. of Shares |
Type |
Value |
Amount |
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318918204 |
Ordinary Shares |
Rs.2/- each |
Rs. 637.836 Millions |
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Subscribed & Paid-up Capital : |
Value |
Amount |
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318872464 |
Ordinary Shares |
Rs.2/- each |
Rs. 637.745 Millions |
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Less : |
Calls Unpaid by others |
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- |
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Total |
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Rs. 637.745 millions |
Notes:
Of the above Equity Shares -
(a) 3,151,187 shares of Rs. 10/- each allotted as fully paid-up pursuant
to a contract without payment being
received in cash before the
buyback of shares.
(b) 257,660 shares of Rs. 10/- each allotted as fully paid-up pursuant
to a contract in full redemption of Mortgage
Debentures before the
buyback of shares.
(c) 26,972,214 shares of Rs. 10/- each allotted as fully paid Bonus
Shares by capitalisation of General Reserve
and Share Premium before the
buy-back of shares.
(d) The authorised and paid-up face value of the Company's Ordinary
(Equity) Shares of Rs. 10/- each were
subdivided into authorised
and paid-up face value of Rs. 2/- per share with effect from 1 st September,
2004.
(e) The Company has issued 5,500 Ordinary (Equity) Shares of Rs. 2/-
each during the financial year out of the
issue of Right Shares in
1996 kept in abeyance.
(f) 119,577,174 shares of Rs. 2/- each allotted as fully paid Bonus
Shares by capitalization of Share Premium and
General Reserve during the
financial year.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS
FUNDS |
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1] Share Capital |
637.745 |
398.554 |
398.600 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2120.714 |
1897.883 |
1651.00 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
|
2758.459 |
2296.437 |
2049.600 |
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LOAN FUNDS |
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1] Secured Loans |
860.288 |
76.201 |
66.800 |
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2] Unsecured
Loans |
292.830 |
351.502 |
577.300 |
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TOTAL BORROWING
|
1153.118 |
427.703 |
644.100 |
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DEFERRED TAX
LIABILITIES |
68.018 |
67.860 |
0.000 |
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TOTAL
|
3979.595 |
2792.000 |
2693.700 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
1207.984 |
1172.928 |
964.300 |
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Capital work-in-progress
|
137.147 |
110.488 |
115.700 |
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INVESTMENT
|
128.168 |
128.168 |
109.100 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES
|
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Inventories
|
2520.694
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1995.793
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1668.300
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Sundry Debtors
|
1435.218
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1095.091
|
846.500
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Cash & Bank Balances
|
217.427
|
253.353
|
219.700
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Other Current Assets |
0.000
|
0.000
|
0.000
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Loans & Advances
|
466.643
|
296.429
|
435.000
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Total Current Assets
|
4639.982 |
3640.666 |
3169.500 |
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Less :
CURRENT LIABILITIES & PROVISIONS
|
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Current Liabilities
|
1983.242
|
2011.388
|
1341.800
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Provisions
|
151.208
|
250.703
|
326.500
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Total Current Liabilities
|
2134.450 |
2262.091 |
1668.300 |
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Net Current Assets
|
2505.532 |
1378.575 |
1501.200 |
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MISCELLANEOUS EXPENSES
|
0.764 |
1.841 |
3.400 |
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TOTAL
|
3979.595 |
2792.000 |
2693.700 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
11651.164 |
9809.717 |
8245.778 |
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Other Income |
128.934 |
133.827 |
124.828 |
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Total Income |
11780.098 |
9943.544 |
8370.606 |
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Profit/(Loss) Before Tax |
1022.341 |
916.433 |
662.781 |
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Provision for Taxation |
191.667 |
213.506 |
141.544 |
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Profit/(Loss) After Tax |
830.674 |
702.927 |
521.237 |
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Earnings in Foreign Currency : |
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Export Earnings |
12.167 |
13.934 |
5.741 |
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Other Earnings |
3.391 |
1.329 |
5.950 |
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Total Earnings |
15.558 |
15.263 |
11.691 |
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Imports : |
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Raw Materials |
947.234 |
633.623 |
432.476 |
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Stores & Spares |
0.644 |
1.275 |
0.570 |
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Capital Goods |
33.012 |
36.856 |
33.601 |
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Total Imports |
980.890 |
671.754 |
466.647 |
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Expenditures : |
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Materials
Consumed |
7608.303 |
6269.499 |
5296.872 |
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Expenses |
2888.007 |
2516.349 |
2160.745 |
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Interest |
82.881 |
52.771 |
36.382 |
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Depreciation |
178.016 |
173.923 |
156.869 |
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Total Expenditure |
10757.207 |
9012.542 |
7650.868 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
|
Type |
1st Quarter |
2nd Quarter |
3rd Quarter |
|
Sales
Turnover |
3033.700 |
3505.200 |
3560.000 |
|
Other
Income |
11.700 |
11.600 |
19.200 |
|
Total
Income |
3045.400 |
3516.800 |
3579.200 |
|
Total
Expenditure |
2718.000 |
3129.000 |
3196.500 |
|
Operating
Profit |
327.400 |
387.800 |
382.700 |
|
Interest |
19.000 |
22.100 |
31.700 |
|
Gross
Profit |
308.400 |
365.700 |
351.000 |
|
Depreciation |
44.000 |
45.600 |
47.600 |
|
Tax |
65.500 |
70.000 |
70.900 |
|
Reported
PAT |
198.900 |
250.100 |
232.500 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.31 |
0.25 |
0.26 |
|
Long Term Debt-Equity Ratio |
0.00 |
0.01 |
0.24 |
|
Current Ratio |
1.33 |
1.34 |
1.87 |
|
TURNOVER RATIOS |
|
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|
Fixed Assets |
6.65 |
5.42 |
5.63 |
|
Inventory |
5.85 |
6.09 |
6.80 |
|
Debtors |
10.45 |
11.50 |
12.31 |
|
Interest Cover Ratio |
11.10 |
14.95 |
17.53 |
|
Operating Profit Margin(%) |
9.85 |
10.35 |
9.07 |
|
Profit Before Interest And Tax Margin(%) |
8.50 |
8.80 |
7.42 |
|
Cash Profit Margin(%) |
7.63 |
7.85 |
7.16 |
|
Adjusted Net Profit Margin(%) |
6.28 |
6.30 |
5.50 |
|
Return On Capital Employed(%) |
34.03 |
36.50 |
28.60 |
|
Return On Net Worth(%) |
33.06 |
32.58 |
26.78 |
LOCAL AGENCY
FURTHER INFORMATION
History
Subject was incorporated on 17 Dec.'23 as Hadfields (India),
Hadfields was purchased by British Paints (Holdings) on 12 Dec.'47 and the name
was changed to British Paints (I). Celanese Corporation, US, acquired a
controlling interest in British Paints in 1965 and later sold its interest to
Berger, Jenson and Nicholson, UK. The name was changed to Berger Paints India
Limited on 31 Dec.'83. It now belongs to the Dingra group. The company offers a
whole range of decorative and industrial paints. Its products include Luxol
Hi-Gloss Synthetic enamel, Viton Auto-Refinish, etc. It has collaborations with
Teodur, Holland; Herberts, Stoillack and Vianova, Valspar Corporation, US;
etc.
The subsidiaries of subject are Beepee Coatings Private Limited, Berger Jenson
and Nicholson (Nepal) Private Limited, Berger Paints (Cyprus) Limited and
Berger Paints Overseas Limited
Subject came out with Rs 57.4 Millions public issue at a premium of Rs.35 in
January 1989. It commenced production from May'97 at Pondicherry with an
installed capacity of 18000 TPA to manufacture Paints, Enamels, Varnishes and
6000 TPA to manufacture Synthetic Resins, and augmentation of the Company's
existing Powder manufacturing capacities at the plant in Howrah. The company
has also came up with an Rights issue in the ratio of 1:1.
During 1998-99, Rajdoot Paints has been amalgamated with the company and the
company also issued bonus shares in ratio of 1:1. During 1999-00, the company
has acquired 100% share in Jenson & Nocholson (Nepal) Private Limited, Also
it has entered into technical licence agreement with Nippon Paint Co Limited,
Japan. With this association the company will be able to develop and increase
the market share for its products.
During 2000-01 the company entered into Joint Venture Agreement with ICI India
(ICI) for taking over the entire Motor & Industrial business of ICI and its
factory at Rishra. The joint venture company viz. Berger Auto & Industrial
Coating took over the business from ICI on May 2001.
The company has declared Bonus Issue of Equity Shares in the ratio of One Bonus
Share for every Two Equity shares held in the company and these shares were
allotted on 12.04.2004. Further in September 2004 the company has sub-divided
its equity share face value from Rs.10/- per share to Rs.2/- per share.
The company has merged Berger Auto and Industrial Coatings Limited (BAICL), a
wholly owned subsidiary of the company with itself with effect from 1st April 2004.
In the year 2004-05 the company has commenced its commercial production of the
new solvent-based paints plant at Jammu. Further a powder coating plant is now
under construction.
In 2005-2006, the Power coating plant which was under construction in 2004-2005
started commercial production at the new 2,400 MTPA in Jammu. The resin
manufacturing plant at Jammu is at an approval stage. The company has decided
to set up an exclusive automotive paint plant at Rewari in Haryana. The land
for the purpose has been acquired and is likely to be completed in early
2007.
Trade Terms with :
- Alka Minerals
and Chemicals
- A P
Polyplasts
- Alpha
Minerals
- Anupam
Colours and Chemicals Industries
- Anupam
Colours Private Limited
- Ashok Tin
Works
- Auro
Chemicals
- Colour India
- Coastal
Paints Limited
- Classic
Enterprises
- Choksey
Chemicals
- Dua Metal
Krafts
- Deep
Enterprises
- Gemini Paints
- Mittal
Polymers
- Metal
Containers
- Narchem
Industries
- National
Moulding Company Limited
- Parachem
Products
- Ravi
Chemicals
- Sudarshan
Minerals
- Soham Packaging
- Tin Box
Company
- Shree Balaji
Creations
- Dhariyal
Chemicals
OPERATIONAL
AND FINANCIAL PERFORMANCE
The consolidated sales achieved during the financial year ended 31st
March, 2007 were Rs.13836 million as against Rs.11653 million in the previous
year showing a growth of 18.73%. The consolidated net profit, at Rs.877 million
was higher than that of the previous year (Rs.744 million) by 17.88%.
During the financial year ended 31st March, 2007, the Company on a stand- alone
basis, achieved sales of Rs.13220 million as against Rs.11164 million in the
previous year registering a growth of 18.42%. The profit before depreciation,
interest and exceptional item was Rs.1284 million as against Rs.1146 million in
the previous year, recording an improvement of 12.04%. The profit before tax at
Rs.1022 million and the profit after tax at Rs. 830 million during the year
under review showed an improvement of 11.57% and 18.06% respectively.
Company's results for the year 2006-07 reflect its ability to utilize the
market opportunities arising out of sustained growth in GDP and the
commensurate growth of the manufacturing sector and particularly the
infrastructure, construction and the automobile industry segments. The
investment recovery and consumption boom led to upsurge in demand and the
Company responded through enhancing the capacities of value added range,
introduction of new and more sophisticated products addressing carefully chosen
customer preferences.
The new products introduced during the year include Luxol One Coat Enamel,
Weathercoat All Guard Exterior Emulsion - aimed to protect from climatic
hazards and Luxol Breathe Easy - an environment friendly product for green
homes. Rangoli Easy Clean, a paint which facilitates easy removal of stains and
oil, was re-positioned with improved formulation. The Company today has a
bouquet of paints for every category in both water based and solvent based
products. The Lewis Berger range of products, launched in the year 2005-06 and
classified in three categories - Precious, Exclusive and Select - based on
price points, have received encouraging response from the market. The Company
intends to reach all the units of a family and this direction has introduced
Galaxy - for illuminating children's rooms and Berger Kidz, which has a fun and
entertainment value. The Company has launched special applicator loyalty
programmes for increasing the awareness of the Company's products among the
applicators and continues to promote and concentrate on its Projects business
and Lewis Berger Home Painting Services. The specific purpose of the Company is
to provide better services and quality at a lower cost in Indian homes and
buildings such that its brands are recognized as true leaders in the premium
sector on the one hand and value for money on the other, without compromising
on the aspects of sustainability and durability The Company is also enhancing
its visibility in various home stores coming up in the metro cities.
One of the key drivers of growth in the consumer goods sector is the
ability to make quick decisions based on a structured and seamless management
information and transaction analysis system. Keeping this in view, the Company
is in the process of implementing an Enterprise Resource Planning (ERP) system.
At the same time, the Company continues to focus on logistics and control of
losses at all points of manufacturing, transportation and storage.
The Company is in the process of setting up a joint venture company by the name
of BNB Coatings India Limited with Nippon Bee Chemicals Company Limited of
Japan (NBC) for manufacture of coatings for plastic substrates used in
automobiles. Once fully operational, this new venture is expected to address a
niche market with the proven expertise of NBC.
CAPITAL, DIVIDEND AND BONUS ISSUE:
Pursuant to the resolutions adopted by the shareholders at the Annual General
Meeting held on 28th July 2006, the authorized capital of the Company stands
increased from Rs.400.000 millions divided into 200,000,000 Ordinary (Equity)
Shares of Rs.2/- each to Rs.650.000 millions divided into 325,000,000 Ordinary
(Equity) Shares of Rs.2/- each. Calls amounting to Rs.0.026 million
representing 5,187 partly paid Equity Shares of a face value of Rs.10/- each
[or 25,935 Ordinary (Equity) Shares of a face value of Rs. 2/- each] have been
received m full.
The Company paid an interim dividend of 30% for the year under review in
February 2007 amounting to Rs. 191 million.
Directors recommend a final dividend @ 20% for the year under review This, if approved,
will absorb an amount of Rs. 128 million and will be paid to those members
whose names appear in the Register of Members as on 31st July, 2007 which is
the conclusion of the book closure period. The total dividend payment for the
year will therefore be Rs. 319 million as compared to Rs. 398 million in the
previous year.
Pursuant to the approval accorded by the shareholders at the Annual General
Meeting held on 28th July, 2006, the Company successfully issued 119,577,174
Ordinary (Equity) Shares ('the Bonus Shares') of the Company of Rs.2/- each at
par to the members whose names appeared in the Register of Members of the
Company as on 13th October, 2006, in the proportion of three Bonus Shares for
every five existing fully paid up Ordinary (Equity) Shares held by them. As a
result of the said Bonus Issue, the paid-up capital of the Company stands
increased from Rs.398.580 million representing 199,289,790 Ordinary (Equity)
Shares of Rs.2/- each to Rs.637.745 million representing 318,872,464 Ordinary (Equity)
Shares of Rs.2/- each.
In terms of the provisions of Section 205C of the Companies Act, 1956, the
Company transferred an amount of Rs. 1.035 million to the Investor Education
and Protection Fund, in respect of final dividend for the year ended 31st
March, 1999, Debenture Interest for the year 1999-2000 and Debenture Redemption
money for the year 1999-2000 lying unclaimed for more than seven years from the
date they became due.
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENT:
The Indian economy continues to grow at an impressive rate during the last 3
years. The GDP growth during the financial year 2006-07 was an all time high of
9.4%. The current pattern of growth is broad based - with robust consumption,
investments and exports. The manufacturing sector has done exceedingly well
with growth over 10% and, along with the services sector, has contributed to
the development of the overall economy.
The paint industry has benefited from the growth in the overall economy arising
out of boom in the construction industry development of the infrastructure
sector and major increase in output from the automobile segment. There has been
a significant increase in demand for premium decorative products from urban
markets resulting in higher sales of both exterior and interior emulsions. The
growth in the manufacturing sector has also resulted in increased demand for
automotive and industrial paints.
OUTLOOK:
The future of the Paint Industry is inextricably linked with the performance of
the economy and hence the outlook appears to be reasonably good. The Company
expects its sales to grow in line with the industry growth. The Company will
concentrate on both the premium and the mass segments of the market in the
agricultural sector. The Company is making continuous efforts to introduce new
premium coatings both for Interior & Exterior applications. The current
year's offerings include Luxol One Coat Enamel, Weathercoat All Guard Exterior
Emulsion and Luxol Breathe Easy Rangoli Easy Clean was repositioned with
improved formulation. These premium products have very specific end use
application and would find good customer acceptance.
The Company also offers a wide range of other products. The customers can mix
and match colours according to their choice in the Colorbank range of products
available all over India. For special designer finishes, the Company offers a
wide array of applications among its registered designs of Illusions, which
have been developed in-house. Lewis Berger Home Painting provides trouble-free
home painting solution at a reasonable cost. The new products of Galaxy and
Berger Kidz, aimed at brightening up children's rooms, have received excellent
support.
FINANCIAL PERFORMANCE WITH RESPECT TO
OPERATIONAL PERFORMANCE:
The Company's gross sales revenue for the year 2006-07 has been Rs.13220
million, registering a growth of 18.42% over that for the year 2005-06. All
factories performed well during the year under review The Company's profit
after tax, at Rs.830 million, registering a growth of 18.06% over that of the
previous year.
Projects
During the year under review, the Company started commercial production at the
new 2,400 MTPA powder coating plant at Jammu. The resin manufacturing plant at
Jammu is at an approval stage.
The Company has decided to set up an exclusive automotive paint plant at Rewari
in Haryana. The land for the purpose has been acquired. Subject to obtaining
necessary approvals, it is likely to be completed in early 2007.
|
Secured Loans from Bank taken by wholly owned subsidiaries and
outstanding as at 31st March, 2007, guaranteed by the Company |
Rs. 6.460
millions |
|
Secured Loans taken by a joint venture company Berger Becker Coatings
Private Limited and outstanding as at 31st March, 2007 guaranteed by the
Company |
Rs. 95.069
millions |
Becker Industrial Coatings (HK) Limited, the joint venture partner
holding 51.02% shares has in turn indemnified the Company against any loss on
account of these guarantees to the extent of its shareholding in the joint
venture.
NOTES
TO THE BALANCE SHEET
(Rs. in millions)
|
|
31.03.2007 |
31.03.2006 |
|
Estimated amount of Contracts remaining to be executed on Capital
Account not provided for |
0.032 |
0.036 |
|
The Company had been determining the assessable value for Excise
purpose based on the adjudication order of the assessing authority as also
appellate orders of the earlier years and various decisions of the Hon'ble
Tribunal and of various Hon'ble High Courts as also of the Hon'ble Supreme
Court. The Excise Authorities have disputed some of the abatements and the
matter is sub-judice. However, in view of the decision of the Hon'ble Supreme
Court in May, 1995 while determining the assessable value for Excise purpose,
there may arise an additional excise duty liability for the years 1988-89 to
1993-94 which is not quantifiable at present as both the price lists as also
the assessments for the said period are pending final adjudication. |
|
|
|
Claims against the Company not acknowledged as debts: The Sales Tax,
Excise, Income Tax and Provident Fund Authorities have made certain claims
totalling Rs. 0.313 (2005- 06: Rs. 0.310), Rs. 0.021 (2005-06: Rs. 0.005),
Rs. 0.062 (2005-06: Rs. 0.062), Rs. 0.001 (2005-06: Rs. 0.001) respectively
in respect of earlier years. The Company has been advised by its lawyers that none of the claims are tenable and is therefore
contesting the same. The future cash flows on account of the above cannot be
determined unless the judgment /decisions are received from the ultimate
judicial forums. |
|
|
|
In respect of the insurance claim for the assets lost by fire in the
Company's Goa Plant on 28th April, 2006, the Company has received Rs. 30,000
as on account payment during the year. Pending full disposal of the claim,
the Company has considered the difference between such amount received and
the book value of such assets as claims receivable. |
|
|
Fixed Assets
- Land :
Freehold
Leasehold
- Buildings :
Freehold
Leasehold
- Plant and
Machinery
- Furniture and
Fittings
- Equipment
- Motor Cars
and
- Other Vehicles
AS PER
WEB:
Profile
Subject is the culmination of over seven-decade
process of evolution and growth that began in 1923. Its growth has been closely
linked with the business and industrial development of modern India.
BERGER'S performance is anchored today in a wide variety of Decorative and
Industrial paints which continue to gain an increasing share of the highly
competitive Indian paint market. Being an ISO 9001 company its quality products
have attained instant recognition, worldwide, and continues to meet quality
requirements that are demanded today even in the domestic market.
The Country's third largest paint manufacturer, with its Headquarters in
Calcutta, BERGER controls a distribution network comprising of 66 stock points
and approximately 10,000 dealers, spread across the country.
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.40.15 |
|
UK Pound |
1 |
Rs.80.54 |
|
Euro |
1 |
Rs.63.41 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
10 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
|
81 |
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 |
|