MIRA
INFORM REPORT
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Report Date : |
02.09.2008 |
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) : |
31.03.2008 |
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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.] |
U51434WB1923PLC004793 |
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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 : |
Public Limited Liability Company Company’s shares are listed on the Stock Exchange. |
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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 17000000 |
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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 / 249 9754 |
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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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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 and 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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Depots : |
· Kolkata · Siliguri · Guwahati · Patna · Ranchi · Bhubaneshwar · Cuttack · Raipur · Agartala · Shillong · Mumbai · Goa · Nagpur · Pune · Aurangabad · Ahmedabad · Rajkot · Vadodara · Surat · Indore · Bhopal · Jabalpur · New Delhi · Lucknow · Ghaziabad · Dehradun · Varanasi · Bareilly · Kanpur · Haldwani · Ludhiana · Bhatinda · Jalandhar · Chandigarh · Jaipur · Jodhpur · Faridabad · Jammu · Panipat · Sahibabad · Chennai · Pondicherry · Coimbatore · Salem · Madurai · Bangalore · Mangalore · Chandigarh · Hubli · Kochi · Kozhikode · Kottayam · Thiruvananthapuram · Secunderabad · Hyderabad · Vishakhapatnam · Vijayawada. |
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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Date of Birth/Age : |
58 Years |
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Qualification : |
37 Years |
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Experience : |
B. Tech, PGDBA |
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Other Directorship
: |
Marketing Manager, Abucon Nigeria Limited |
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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 |
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Name : |
Mr. Gerald Kenneth Adams |
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Designation : |
Director |
KEY EXECUTIVES
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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 |
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Name : |
Mr. Ashok Sharma |
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Designation : |
Senior Vice
President – Auto, GI and Power |
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Date of Birth/Age : |
58 Years |
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Qualification : |
MBA (Finance),
B.Sc. Tech, B.Sc. (Hons) |
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Experience : |
35 Years |
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Other Directorship
: |
Production
Executive, Asian Paints (India) Limited |
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Name : |
Mr. Prabal Kr.
Sengupta |
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Designation : |
Vice President Marketing
and Sales (Retail) |
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Date of Birth/Age : |
53 Years |
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Qualification : |
PGDBM, M. Sc.
(Chem), B.Sc. (Chem) |
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Experience : |
29 Years |
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Other Directorship
: |
Marketing
Executive, National Tobacco Company |
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Name : |
Mr. Sunil Sharma |
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Designation : |
President |
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Date of Birth/Age : |
56 Years |
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Qualification : |
B.A. Hons.
(Economics), MBA |
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Experience : |
34 Years |
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Other Directorship
: |
Garware Paints,
General Manager (Sales and Exports) |
SHAREHOLDING
PATTERN
(As on 31.03.2008)
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Status |
Holding (%) |
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Promoters |
73.61 |
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Non Resident Individuals / Companies |
2.71 |
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Financial Institutions / Insurance Companies |
5.29 |
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Resident Individuals |
13.78 |
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Domestic Companies |
2.15 |
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Nationalized Banks and Mutual Funds |
2.46 |
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Total |
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 |
Installed
Capacity |
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Synthetic Resin |
MT |
21396 |
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Paints, Varnishes, Enamels, etc. Liquid Non-Liquid |
MT MT |
157946 |
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
|
Suppliers : |
·
Anupam Colours and Chemicals Industries ·
Anupam Colours Private Limited ·
Aditya Varna Private Limited ·
Astral Paints Private Limited ·
Ashok Tin Works ·
Aurum Pharmachem Private Limited ·
Akross Synthetics Private' Limited ·
Calcutta Paper Industries ·
Marigold Paints Private Limited ·
Metal Products & Engineering Company ·
National Moulding Company Limited ·
Plasticizer and Polymer Products ·
Sahjanand Trading Company ·
Techcon India Private Limited ·
Coastal Paints Limited ·
Fozdar Products ·
Evergreen drums and Cans Private Limited ·
Gemini Paints ·
ICMC Metal Private Limited ·
Indian Tin Box Mfg Company Private Limited ·
Lintas Packaging Private Limited ·
Manish Plastics ·
Tulsyan Cans and Cardboards Private Limited ·
Tulsyan Enterprise Private Limited ·
Unicat Chemicals Private Limited ·
Channel Plastics Private Limited ·
Citizen Containers Limited ·
Colour India ·
A G Gasochem (Private) Limited ·
Aakar India ·
Auro Chemicals ·
Balajee Rosin Industries ·
Chopra Stearates (Private) Limited ·
Dimple Chemicals ·
Maydeep Industries ·
Narchem Industries ·
Vega Chemicals ·
Pradeep Metal ·
Soham Packaging ·
P. Polyplast ·
Pearson Drums and Barrels (Private) Limited |
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No. of Employees : |
1732 |
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Bankers : |
· Standard Chartered Bank, 4, Netaji Subhas Road, P. O. Box 40, Kolkata – 700 001, West Bengal ·
Bank of Baroda · Central Bank of India, 33, Netaji Subhas Road, P. O. Box 40, Kolkata – 700 001, West Bengal, India ·
Citibank, N.A. · Corporation Bank, Kolkata, West Bengal, India ·
HDFC Bank Limited · Hongkong and Shanghai Banking Corporation Limited, Kolkata, West Bengal, India ·
ICICI Bank Limited · State Bank of India, Kolkata, West Bengal, India · Union Bank of India, Kolkata, West Bengal, India · BNP Paribas, Kolkata, West Bengal, India · ING Vysya Bank Limited · ABN Amro Bank NV |
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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 : |
· U. K. Paints India Private Limited · Asian Packaging Limited · Berger Becker Coatings Limited |
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Subsidiaries : |
· Beepee Coatings Limited · Berger Jenson and Nicholson (Nepal) Private Limited · Berger Auto and Industrial Coatings Limited |
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 |
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 |
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.
(b) 257,660 shares of Rs. 10/- each allotted as fully paid-up pursuant
to a contract in full redemption of Mortgage
Debentures.
(c) 26,972,214 shares of Rs. 10/- each allotted as fully paid Bonus
Shares by capitalisation of General Reserve
and Share Premium.
(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 1st September,
2004.
(e) 119,577,174 shares
of Rs. 2/- each allotted as fully paid Bonus Shares by capitalization of Share
Premium and General Reserve.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES
OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS
FUNDS |
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1] Share Capital |
637.745 |
637.745 |
398.554 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2852.342 |
2120.714 |
1897.883 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
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3490.087 |
2758.459 |
2296.437 |
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LOAN FUNDS |
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1] Secured Loans |
998.391 |
860.288 |
76.201 |
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2] Unsecured
Loans |
210.796 |
292.830 |
351.502 |
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TOTAL BORROWING
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1209.187 |
1153.118 |
427.703 |
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DEFERRED TAX
LIABILITIES |
65.104 |
68.018 |
67.860 |
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TOTAL
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4764.378 |
3979.595 |
2792.000 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
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1337.086 |
1207.984 |
1172.928 |
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Capital work-in-progress
|
247.077 |
137.147 |
110.488 |
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INVESTMENT
|
218.467 |
128.168 |
128.168 |
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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
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2690.954
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2520.694
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1995.793
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Sundry Debtors
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1584.355
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1435.218
|
1095.091
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Cash & Bank Balances
|
399.003
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217.427
|
253.353
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Other Current Assets |
0.000
|
0.000
|
0.000
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Loans & Advances
|
592.139
|
466.799
|
296.429
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Total Current Assets
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5266.451 |
4640.138 |
3640.666 |
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Less :
CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
|
2116.477
|
1983.324
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2011.388
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Provisions
|
188.226
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151.282
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250.703
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Total Current Liabilities
|
2304.703 |
2134.606 |
2262.091 |
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Net Current Assets
|
2961.748 |
2505.532 |
1378.575 |
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MISCELLANEOUS EXPENSES
|
0.000 |
0.764 |
1.841 |
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TOTAL
|
4764.378 |
3979.595 |
2792.000 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Sales Turnover |
13396.688 |
11652.334 |
9809.717 |
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Other Income |
141.390 |
128.934 |
133.827 |
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Total Income |
13538.078 |
11781.268 |
9943.544 |
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Profit/(Loss) Before Tax |
1187.782 |
1022.341 |
916.433 |
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Provision for Taxation |
267.001 |
191.667 |
213.506 |
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Profit/(Loss) After Tax |
920.781 |
830.674 |
702.927 |
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Earnings in Foreign Currency : |
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Export Earnings |
8.175 |
12.167 |
13.934 |
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Other Earnings |
5.050 |
3.391 |
1.329 |
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Total Earnings |
13.225 |
15.558 |
15.263 |
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Imports : |
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Raw Materials |
952.260 |
947.234 |
633.623 |
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Stores & Spares |
2.004 |
0.644 |
1.275 |
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Capital Goods |
31.938 |
33.012 |
36.856 |
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Total Imports |
986.202 |
980.890 |
671.754 |
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Expenditures : |
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Materials Consumed |
8711.498 |
7608.303 |
6269.499 |
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Expenses |
3336.987 |
2889.177 |
2516.349 |
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Interest |
112.687 |
82.881 |
52.771 |
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Depreciation |
186.468 |
178.016 |
173.923 |
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Other Expenditure |
2.656 |
0.550 |
0.000 |
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Total Expenditure |
12350.296 |
10758.927 |
9012.542 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2008 |
|
Type |
1st
Quarter |
|
Sales
Turnover |
3781.600 |
|
Other
Income |
69.500 |
|
Total
Income |
3851.100 |
|
Total
Expenditure |
3464.500 |
|
Operating
Profit |
386.600 |
|
Interest |
21.800 |
|
Gross
Profit |
364.800 |
|
Depreciation |
49.700 |
|
Tax |
83.400 |
|
Reported
PAT |
231.700 |
KEY RATIOS
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt-Equity Ratio |
0.38 |
0.31 |
0.25 |
|
Long Term Debt-Equity Ratio |
0.00 |
0.00 |
0.01 |
|
Current Ratio |
1.4 |
1.33 |
1.34 |
|
TURNOVER
RATIOS |
|
|
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|
Fixed Assets |
5.88 |
5.65 |
5.42 |
|
Inventory |
5.84 |
5.85 |
6.09 |
|
Debtors |
10.08 |
10.45 |
11.5 |
|
Interest Cover Ratio |
10.29 |
11.1 |
14.95 |
|
Operating Profit Margin(%) |
9.87 |
9.84 |
10.35 |
|
Profit Before Interest And Tax
Margin(%) |
8.65 |
8.5 |
8.8 |
|
Cash Profit Margin(%) |
7.28 |
7.63 |
7.85 |
|
Adjusted Net Profit Margin(%) |
6.05 |
6.28 |
6.3 |
|
Return On Capital Employed (%) |
30.65 |
34.03 |
36.5 |
|
Return On Net Worth (%) |
29.6 |
33.06 |
32.58 |
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 Company 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 a Rs 57.400 Millions public issue at a premium of Rs 35
in Jan.'89. 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 and Nocholson (Nepal) Private Limited, Also
it has entered into technical licence agreement with Nippon Paint Company
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 and Industrial business of ICI and its
factory at Rishra. The joint venture company viz. Berger Auto and 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, 2008, were Rs.15857 million as against Rs.13838 million in
the previous year showing a growth of 14.6%. The consolidated net profit, at
Rs.930 million was higher than those of the previous year (Rs.877 million) by
6.04%.
During the financial year ended 31st March, 2008, the
Company achieved sales of Rs.15217 million as against Rs.13222 million in the previous
year registering a growth of 15.09%. The profit before depreciation, interest
and exceptional item was Rs.1490 million as against Rs.1284 million in the
previous year, recording an improvement of 16.04%. The profit before tax at
Rs.1188 million and the profit after tax at Rs.921 million during the year
under review showed an improvement of 16.24% and 10.96% respectively.
The Company was able to deliver steady top line growth in spite of a lower GDP
growth and slow down in the automotive sector. The margins could have been
further improved but for inflationary pressures in raw materials from the 4th
quarter. The Company continued to focus on improving product mix, cutting costs
and improving service level to customers so as to retain its competitive
edge.
The growth in the architectural/ decorative segment
continued to be good, boosted by a buoyant performance by the housing and
infrastructure sectors. The Company continued its efforts of trying to reach
out to a larger number of direct customers and also paint applicators through
innovative new products and value added services.
The new products introduced during the year include Illusions Sealer - an
undercoat used to protect the walls from dampness and salt leaching, Illusions
Metallica - to provide metallic satin finishes to the interior walls in gold,
silver and copper bases which can be further enhanced to myriads of shades and
designs, Kidz Glitter and Glow - which provides a sparkling effect during the
day and glow in the dark at night for children.
The Lewis Berger Home Painting Services have been extended to 17 centres, which
cater to 34 cities in the country This business continues to grow well and
provides excellent painting service at reasonable cost to the customers. It also
helps the Company to build a loyal customer base for the future.
The Company has introduced 'preview' option on its website. This is an
additional service, which would enable a customer to upload images and examine
different colour combinations and designs before making the final colour
selection.
The Company continues to focus on the growing large project
business in the country through its 'Prolinks' Division - since the share in
this segment has gone up substantially over the last few years. The Company is
also actively working on the applicator loyalty programme to ensure larger
share from this growing new project business segment.
The Protective Coatings business performed well and the Company continues to
ensure that it maintains the preferred supplier position in this segment. The
Powder Coating business also registered a good growth to ensure effective
capacity utilization of the new plant at Jammu.
The ERP project is on track and likely to be completed by calendar year 2008.
The Company is constantly making improvements in the area of godown management
and logistics to improve servicing of the markets across all its depots
throughout the country
CAPITAL, DIVIDEND
AND BONUS ISSUE:
Pursuant to the resolutions adopted by the shareholders
by postal ballot on 11th April, 2008, the authorized capital of the Company
stands increased from Rs.650.000 millions divided into 325,000,000 Ordinary
(Equity) Shares of Rs.2/- each to Rs.750.000 millions divided into 375,000,000
Ordinary (Equity) Shares of Rs.2/- each with effect from 11th April,
2008.
The Directors recommend a dividend @ 25 % for the year under review. This, if
approved, will absorb an amount of Rs.159 million and will be paid to those
members whose names appear in the Register of Members as on 30th July, 2008.
The dividend payment for the year will therefore be Rs.159 million as compared
to Rs.319 million in the previous year.
Pursuant to the approval accorded by the shareholders by way of postal ballot
on 11th April, 2008, the Company has allotted 20,000,000 warrants (Equity
Warrants' to Jenson and Nicholson (Asia) Limited, UK., a part of the promoter
group, on 19th May, 2008, at a price of Rs.49.50 per Equity Warrant, which is
higher than the price determined in accordance with the Securities and Exchange
Board of India (Disclosure & Investor Protection) Guidelines, 2000. The
allotment was made on 19th May, 2008 upon receipt of 10% of the price. The
Equity Warrants are convertible into equity shares at the option of the holder within
a period of 18 months from the date of issue, i.e. within 18th November, 2009.
The proceeds of the issue will be deployed for funding various growth proposals
of the Company.
In terms of the provisions of Section 205C of the Companies Act, 1956, the
Company transferred an amount of Rs.1.306 millions to the Investor Education
and Protection Fund, in respect of dividend amounts lying unclaimed / unpaid
for more than seven years from the date they became due i.e., for the year
ended 31st March, 2000.
SUBSIDIARY
COMPANIES & JOINT VENTURE
The Statement of the holding Company's interest in the subsidiary
companies namely Beepee Coatings Private Limited ('Beepee Coatings', Berger jenson
and Nicholson (Nepal) Private Limited ('BJN - Nepal'), Berger Paints (Cyprus)
Limited ('Berger Cyprus' and subsidiary of its subsidiary company, viz., Berger
Paints Overseas Limited as specified in Sub-section (3) of Section 212 of the
Companies Act, 1956 (the Act') is attached to the Report and Accounts of the
Company. Post 31st March, 2008, all the shares of Lusako Trading Limited have
been acquired by Berger Paints India Limited for the purpose of purchase of
shares of Bolix S.A., Poland, as mentioned above.
The performance of Beepee Coatings, a wholly owned subsidiary with its entire
manufacturing facilities dedicated to processing the Company's products was
satisfactory The processing income amounted to Rs.72.85 million.
BJN-Nepal, also a wholly owned subsidiary, has shown substantial improvement.
During the year under review, this company achieved a turnover of Rs.160.83
million and Profit Before Tax of Rs.10.35 million.
Berger Paints (Cyprus) Limited, Cyprus, is a special purpose vehicle for the
purpose of making investments in the Company's interests abroad. So is Lusako
Trading Limited.
Berger Paints Overseas Limited in Russia has commenced commercial production in
September 2007 at its modern plant in the Republic of Adygeya, with alkyd based
and water based paints. During the year under review, it registered a loss of
2,790,000 Roubles (Rs.4.48 million).
The Company's joint venture, Berger Becker Coatings Limited continued to
achieve good business during the year.
BNB Coatings India Limited (BNB), the Company's joint venture with Nippon Bee
Chemicals Company Limited of Japan (NBC) for manufacture of coatings for
plastic substrates used in automobiles was incorporated on 21st June, 2007. The
products manufactured by BNB require sophisticated technological inputs and
strict quality surveillance. BNB has commenced business and has started
supplying to its customers.
The Company has applied for exemption under Section 212 of the Companies Act,
1956 from the Department of Company Affairs from annexing to this Report the
Annual Reports of the above subsidiaries for the year ended 31st March, 2008
and expects to obtain the same before publication. The Consolidated Financial
Statement includes the results of these subsidiary companies duly audited by
their respective statutory auditors. Annual Accounts of the subsidiary
companies and related detailed other information shall be made available to the
members seeking such information and shall also be kept open for inspection at
the Head Office of the Company by any investor during working hours.
The Company's joint venture with Punjab National Bank, Vijaya Bank and
Principal Financial Group (Mauritius) Limited in the form of Pnb Principal
Advisory Company Private Limited continued its business of direct broking.
During the year ended 31st March, 2008, this company generated business income
of over Rs.232.500 millions (2006-07: Rs167.400 millions) and made a profit
after tax of Rs.77.200 millions (2006-07: Rs.15.000 millions).
PROJECTS
During the year, the Company commenced the following
projects:
Work on setting up of an automobile paint manufacturing plant with a combined
capacity of 24,000 MTPA at the Jejuri Industrial Estate, Pune is progressing in
full swing. The Company has received environment clearance from the Ministry of
Environment and Forests for this purpose and is finalizing the design and the
contractors.
The capacity expansion of the Goa solvent based paint plant up to 18,000 KL per
annum is complete and the plant is expected to be commissioned soon.
Capacity of the Jammu powder plant has been expanded during the year.
The Company has started preliminary work for expansion of water based paint and
resin manufacturing capacity in its existing plant at Rishra in West Bengal and
installation of a resin manufacturing plant in Goa.
The Company's subsidiary Beepee Coatings Private Limited is expanding its
capacity in Gujarat.
FUTURE
PROSPECTS
There are signs of slowdown in the economy with higher
inflation and significant rise in the prices of raw materials. The spiraling
prices of crude oil may impact the demand as well as the profitability. Your
Company has experienced these challenges in the earlier years and has
successfully faced them in the market through various measures of containing
costs, changes in product mix, widening the customer base by introducing
various categories and ranges of products, reaching out to new consumers in all
sectors, increasingly strengthening the supply chain and logistics, opening up
new depots and formulating marketing strategies and enhancing the commitment of
customers. In the long term, the Company believes that there will be no let up
in the demand and compared to other economies, the demand in India is likely to
grow at a much higher rate supported by growth in housing, of which there is a
shortfall. The per capita consumption of paints in India continues to be low
and there is major opportunity for improvement. There may be a slight dip in the
demand over the short term but the long term prospects remain good due to
obvious growth potential in housing, infrastructure and the industrial sectors,
given the current state of the country's development.
The year to date performance is encouraging and barring unforeseen
circumstances, the Directors are optimistic that the Company will continue to
show results as per market expectations.
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENT:
Considering factors reigning the international
economic scenario, the estimated GDP growth posted by India in the year
2007-08, boosted by healthy growths in agriculture and service sectors, is a
sign of the country's resilience and ability to insulate itself from external
vagaries. The positive growth in the field of agriculture is particularly
encouraging Growth in the manufacturing sector at 8.8% has been lower than that
posted in the year 2006-07. Construction sector continued to perform well with
a 9.8% growth.
Indian paint industry has been growing at an average rate of 13% over the last
five years at a rate higher than the GDP growth. The Indian paint market is
dominated by the architectural /decorative coatings systems segment,
constituting almost three-fourth of the market's share. Other large segments
are automotive and industrial paints, protective coatings and powder coatings.
This Company has sizeable presence in all the major sectors.
OUTLOOK:
Considering the needs of housing and the rapid
development in this field that is bound to take place, the Company does not
expect major slow down in this sector. The infrastructure sector is also
expected to clock a uniform growth. These are likely to keep boosting the paint
demand in the long term.
THe Company is at the forefront of the market explaining to the dealers and the
applicators and communicating with the customers about the benefits of the new
offerings and better aesthetics which they offer. In the past couple of years,
the Company has offered many new products to address the needs of the consumers
in a fast evolving, rapidly growing and globally assimilating India. Such
technologically advanced offerings have been well accepted in the market. The
Company is committed to continuing such progressive as well as pioneering initiatives
to not only maintain but enhance its leadership in its field. The Protective
Coatings Business and the Automotive Business are also expected to perform
well.
With the concerns of energy savings catching up with India, particularly in
view of the rising crude and gas prices, the Company will be able to offer
External Insulation and Finishing Systems from Bolix S.A. of Poland, which it
proposes to acquire in the near future. This would lead to major savings of
electricity (and therefore, fuel), other than offering aesthetic values and
durability.
FINANCIAL
PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:
The Company's gross sales revenue for the year 2007-08 has
been Rs.15217 million, registering a growth of 15.09% over that for 2006-07.
All factories performed well during the year under review. The Company's profit
after tax, at Rs.921 million, registered a growth of 10.96% over that of the
previous year.
Fixed Assets
- Land :
Freehold
Leasehold
- Buildings :
Freehold
Leasehold
- Plant and Machinery
- Furniture and Fittings
- Equipment
- Motor Cars and Other
Vehicles
Intangible
Assets :
·
Computer Software
AS PER
WEBSITE :
Profile
Subject 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 and the second largest
decorative paint player, Berger is headquartered in Calcutta and services the
market through a distribution network comprising of 75 stock points and 12,000+
paint retailers.
Subject where they turn the dreams into colorful reality. With an
unmatched range of products and services, Subject is a leader in paints,
offering its customers a variety of innovative painting solutions, be it
decorative or industrial.
Whether it is the
home or office, the shop or factory, interiors or exteriors, metal, wood,
plastic or any other surface - they have a paint solution for it! With an
ever-evolving profile and rich history, Subject, (an ISO 9001 Company) has come
a long way in the highly competitive Indian paints industry.
Today the names
"Berger" and "Lewis Berger" are synonymous with colour.
Subject continues to be inspired by the creation and innovation of Mr. Lewis
Berger, who through his marvelous shades, had offered people a chance to
transform their homes through the power of imagination. At Berger they believe
in taking paints to the level of fine art. Enriched by the imagination of Lewis
Berger since 1760.
The history of
Subject is literally as colorful as the business it is in. This chapter will
reveal the milestones in the history.
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 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.44.21 |
|
UK Pound |
1 |
Rs.79.76 |
|
Euro |
1 |
Rs.64.72 |
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. |
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 |
|