MIRA
INFORM REPORT
|
Report Date : |
04.07.2011 |
IDENTIFICATION DETAILS
|
Name : |
BERGER PAINTS INDIA LIMITED |
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Registered Office : |
Berger House, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
17.12. 1923 |
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Com. Reg. No.: |
21-4793 |
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Paid up Capital : |
Rs.692.145 Millions |
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CIN No.: [Company
Identification No.] |
L51434WB1923PLC004793 |
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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. |
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No. of Employees : |
1732 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (77) |
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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 25000000 |
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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 and a reputed company having good track. Financial positions of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office / Factory : |
Berger House, |
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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, |
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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 |
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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, |
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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 |
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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, |
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Tel. No.: |
91-5735-22384/249 |
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Depots : |
· Siliguri · Guwahati · · · Bhubaneshwar · · · Agartala · Shillong · Mumbai · · · Pune · · Ahmedabad · · Vadodara · · · · · · · · Dehradun · · · · Haldwani · · Bhatinda · Jalandhar · · Jaipur · · · · Panipat · Sahibabad · Chennai · · · · · · Mangalore · · Hubli · · · Kottayam · Thiruvananthapuram · Secunderabad · · · |
DIRECTORS
As on 31.03.2010
|
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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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. Gerald Kenneth Adams |
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Designation : |
Director |
KEY EXECUTIVES
|
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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Qualification : |
MBA (Finance),
B.Sc. Tech, B.Sc. (Hons) |
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Other Directorship
: |
Production
Executive, Asian Paints ( |
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Name : |
Mr. Prabal Kr.
Sengupta |
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Designation : |
Vice President Marketing
and Sales (Retail) |
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Qualification : |
PGDBM, M. Sc.
(Chem), B.Sc. (Chem) |
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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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Qualification : |
B.A. Hons. (Economics),
MBA |
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Other Directorship
: |
Garware Paints,
General Manager (Sales and Exports) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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18,643,680 |
5.39 |
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192,711,438 |
55.69 |
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211,355,118 |
61.07 |
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50,234,565 |
14.52 |
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50,234,565 |
14.52 |
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Total shareholding of Promoter and Promoter Group (A) |
261,589,683 |
75.59 |
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(B) Public Shareholding |
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|
618,267 |
0.18 |
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46,934 |
0.01 |
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13,200,202 |
3.81 |
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25,689,069 |
7.42 |
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39,554,472 |
11.43 |
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6,789,847 |
1.96 |
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35,674,573 |
10.31 |
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1,399,376 |
0.40 |
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1,064,513 |
0.31 |
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|
748,794 |
0.22 |
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225,551 |
0.07 |
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89,168 |
0.03 |
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1,000 |
- |
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44,928,309 |
12.98 |
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Total Public shareholding (B) |
84,482,781 |
24.41 |
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Total (A)+(B) |
346,072,464 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
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|
- |
- |
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- |
- |
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- |
- |
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Total (A)+(B)+(C) |
346,072,464 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs.0.100 millionBUSINESS 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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GENERAL INFORMATION
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Suppliers : |
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No. of Employees : |
1732 (Approximately) |
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Bankers : |
Axis Bank Limited |
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Facilities : |
Note: Loans from Banks cash credit are secured by hypothecation of stock – in – trade and book debts.
* includes unclaimed matured |
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Banking
Relations : |
- |
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Auditors : |
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Name : |
Lovelock and Lewes Chartered Accountants |
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Holding Company : |
U. K. Paints India Private Limited |
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Joint Ventures : |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
375000000 |
Ordinary Shares |
Rs.2/- each |
Rs.750.000 millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
346118204 |
Ordinary Shares |
Rs.2/- each |
Rs.692.236 Millions |
Subscribed & Paid-up Capital : Value Amount
|
No. of Shares |
Type |
Value |
Amount |
|
346072464 |
Ordinary Shares |
Rs.2/- each |
Rs.692.145 Millions |
Notes:
Of the above Equity
Shares -
(a) 3151187 shares of Rs. 10/- each allotted as fully paid-up pursuant
to a contract without payment being
Received in cash.
(b) 257660 shares of Rs. 10/- each allotted as fully paid-up pursuant to
a contract in full redemption of Mortgage
Debentures.
(c) 26972214 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)
119577174 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
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
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|
|
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1] Share Capital |
692.145 |
637.745 |
637.745 |
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2] Share Warrants |
0.000 |
99.000 |
0.000 |
|
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3] Reserves & Surplus |
5570.134 |
3514.640 |
2852.342 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
6262.279 |
4251.385 |
3490.087 |
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LOAN FUNDS |
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|
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1] Secured Loans |
244.130 |
780.017 |
998.391 |
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2] Unsecured Loans |
0.488 |
0.565 |
210.796 |
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TOTAL BORROWING |
244.618 |
780.582 |
1209.187 |
|
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DEFERRED TAX LIABILITIES |
90.317 |
72.537 |
65.104 |
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|
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|
|
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TOTAL |
6597.214 |
5104.504 |
4764.378 |
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APPLICATION OF FUNDS |
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|
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FIXED ASSETS [Net Block] |
1855.920 |
1623.036 |
1337.086 |
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Capital work-in-progress |
315.968 |
188.228 |
247.077 |
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INVESTMENT |
1701.990 |
295.230 |
218.467 |
|
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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 |
2993.270
|
2663.311
|
2690.954
|
|
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Sundry Debtors |
2047.298
|
1803.799
|
1584.355
|
|
|
Cash & Bank Balances |
375.641
|
318.695
|
399.003
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
483.929
|
597.286
|
592.139
|
|
Total
Current Assets |
5900.138
|
5383.091 |
5266.451 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1950.025
|
1184.169 |
|
|
|
Other Current Liabilities |
700.925
|
923.482
|
2116.477
|
|
|
Provisions |
525.852
|
277.430
|
188.226
|
|
Total
Current Liabilities |
3176.802
|
2385.081 |
2304.703 |
|
|
Net Current Assets |
2723.336
|
2998.010 |
2961.748 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
6597.214 |
5104.504 |
4764.378 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
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|
SALES |
|
|
|
|
|
|
|
Income |
16841.669 |
15083.357 |
13396.688 |
|
|
|
Other Income |
227.312 |
228.535 |
141.390 |
|
|
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TOTAL (A) |
17068.981 |
15311.892 |
13538.078 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials Consumed |
10774.747 |
10069.239 |
8711.498 |
|
|
|
Expenses |
4305.124 |
3741.494 |
3336.987 |
|
|
|
TOTAL (B) |
15079.871 |
13810.733 |
12048.485 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
198.911 |
1501.159 |
1486.937 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
31.094 |
123.887 |
112.687 |
|
|
|
|
|
|
|
|
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|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1958.016 |
1377.172 |
1374.250 |
|
|
|
|
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|
|
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|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
264.070 |
203.983 |
186.468 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1693.946 |
1173.289 |
1187.782 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
492.568 |
285.735 |
267.001 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1201.378 |
887.554 |
920.781 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1467.131 |
892.171 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
120.138 |
88.755 |
NA |
|
|
|
Final Dividend |
380.680 |
191.324 |
NA |
|
|
|
Tax on Distributed Profits |
63.231 |
32.515 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
2104.460 |
1467.131 |
892.171 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1.481 |
1.258 |
8.175 |
|
|
|
Other Earnings |
3.204 |
2.696 |
5.050 |
|
|
TOTAL EARNINGS |
4.685 |
3.954 |
13.225 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1185.517 |
1038.377 |
952.260 |
|
|
|
Stores & Spares |
1.739 |
7.656 |
2.004 |
|
|
|
Capital Goods |
8.038 |
5.529 |
31.938 |
|
|
TOTAL IMPORTS |
1195.294 |
1051.562 |
986.202 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
3.65 |
2.78 |
- |
|
QUARTERLY RESULTS
(UNAUDITED)
(Rs. In Millions)
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
Type |
1st Quarter |
2nd Quarter |
3rd Quarter |
4th Quarter |
|
Net Sales |
4918.400 |
5181.800 |
5500.500 |
5407.500 |
|
Total Expenditure |
4372.400 |
4633.200 |
4939.000 |
4889.600 |
|
PBIDT (Excl OI) |
546.000 |
548.600 |
561.500 |
517.900 |
|
Other Income |
61.500 |
74.100 |
84.900 |
138.200 |
|
Operating Profit |
607.500 |
622.700 |
646.400 |
656.100 |
|
Interest |
9.100 |
31.300 |
45.600 |
35.800 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
598.400 |
591.400 |
600.800 |
620.300 |
|
Depreciation |
71.400 |
72.100 |
77.600 |
78.700 |
|
Profit Before Tax |
527.000 |
519.300 |
523.200 |
541.600 |
|
Tax |
156.800 |
151.900 |
154.100 |
165.200 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
370.200 |
367.400 |
369.1000 |
376.400 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
370.200 |
367.400 |
369.100 |
376.400 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
7.38
|
5.80 |
6.80 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.06
|
7.78 |
8.87 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
21.84
|
16.75 |
17.99 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.27
|
0.28 |
0.34 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.55
|
0.74 |
1.07 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.86
|
2.26 |
2.29 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject was incorporated on 17 Dec.'23 as Hadfields (
The subsidiaries of Subject are Beepee Coatings Private Limited Berger Jenson
and Nicholson (
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
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 (
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
In 2005-2006 the Power coating plant which was under construction in 2004-2005
started commercial production at the new 2400 MTPA in
FINANCIAL
PERFORMANCE
During the
financial year ended 31st March, 2010, the Company achieved net sales of Rs.
16,842 million as against Rs. 15,083 million in the previous year registering a
growth of 12%. The profit before depreciation, interest, exceptional items and
tax was Rs. 1,989 million as against Rs. 1,501 million in the previous year, recording
an improvement of 33%. The profit before tax was Rs. 1,694 million (2008 – 09 :
Rs. 1,173 million) and the profit after tax was Rs. 1,201 million (2008 – 09 :
Rs. 887 million), representing growths of 44% and 35% respectively.
The consolidated
sales achieved during the financial year ended 31st March, 2010 was Rs. 18,913
million as against Rs. 16,239 million in the previous year showing a growth of
16%. The consolidated net profit, at Rs. 1,204 million was higher than that of
the previous year (Rs. 828 million) by 45%.
MANAGEMENT
DISCUSSION AND ANALYSIS
Paint Industry
Structure and Development
The paint industry
bounced back during the year in tandem with the overall economic recovery of
the country. The global recession impacted the industry from October 2008 to
March 2009, when sales had dropped by 10% in volume. The industry recovered
sharply from middle of 2009 owing to strong demand from infrastructure projects
and repainting by residential segment, which accounts for 60-70% of the total
market. Among various categories, the automotive and general industrial
coatings benefitted the most with high demand rise from end use segments. Other
sectors also fared well. The decorative segment would have performed better,
but for a weak monsoon in the year 2009-10. Despite that, a return of consumer
confidence and heightened activities in building and construction sectors
boosted offtake.
The decorative
sector, consisting of exterior and interior wall paints, wood finishes and enamel
and ancillary products such as primers, wall putties, etc., is witnessing a
paradigm shift in customer preferences. This is prompted by higher artistic
values of homemakers and a perceived need for conservation of environment. On a
macro level – the customers are more inclined to water based paints. This
augurs well for the environment since the moment paint is applied on walls, a
part of it evaporates. In case of water based paints, it is only water vapour -
which does not impact the environment. Additionally, it helps conserving fuel
resources.
A closer look at
the market will reveal that all major producers in the decorative sector have
replaced lead and other harmful minerals from paints. Newer, energy efficient
formulations are being introduced and different shades with various quality
attributes are becoming more popular through a wider spectrum of population.
Despite these
developments, per capita consumption in
Company’s
Operations
Almost
three-fourth of the Company’s business is in the decorative segment. In this
area, in the previous year, the Company introduced WeatherCoat All Guard™, in
the exterior coating category. It repels water and protects buildings from
moisture. A unique offer from the Company under the Green Paint umbrella is
Breathe Easy™ which has very low
volatile organic chemicals (VOC) and hence does not emit smell after
application. This contributes to high indoor air quality and is best suited for
those with sensitivities to paint, people with asthma, the elderly and for persons who are unwell. The
Company has also launched a new generation water based wood coating in
The Company’s
decorative business is further classified into Retail and Prolinks. In the
latter, the Company deals directly with major projects – both in Government and
non-government sectors. The Company has strengthened this Division for better
service to customers and tailor made product offerings. In the retail segment,
the Company has set up franchisee brand stores on a pilot basis in the Southern
states of Tamil Nadu and Andhra Pradesh. A full scale roll out is expected
soon. Steps are being taken to improve the service level to the dealers who
form the backbone of the industry -
through quicker deliveries, improved godown facilities and new system implementation.
The automotive and
general industrial business far outperformed expectations. The Company
continued to focus on value added products aimed at reputed customers and OEMs.
The Company maintained its leadership in the
protective coatings business and continued to serve the most prestigious
projects in the infrastructure, oil and gas, power and similar important
sectors.
The Company, on a
stand-alone basis, has only one segment of activity – paints, in accordance
with definition of “segment” as per Accounting Standard 17 issued by the
Institute of Chartered Accountants of India. The product wise performance is
discussed in this report.
Focus and Outlook
for 2010 -11
In 2009-10,
manufacturing registered the highest growth of 10.8% among all sectors of
industry, which clocked an overall 9.3%. The growth in the construction at 6.5%
was much lower than the best. There provides a cause for optimism since India
has fared much better in the construction sector in the past and the fourth
quarter performance was the best among all the four quarters of the year .
Improvement in agriculture and allied sectors, aided by a good monsoon, will
help to boost demands. Given these favourable conditions, the consumption of
paints will be higher than the previous year.
The Company
prepares itself for the future with a number of new projects and expansion of
present capacities. It will focus on optimum mix among various paint segments.
Improvement in share of Prolinks business in urban centers, strengthening
protective coatings business, focus on research and developmental work in areas
where there are perceptible gaps, investment in brand building for critical
products, seamless linkage across all depots
through ERP system by current fiscal end will be some major areas of
focus during the year ahead. The Company will work on expanding its
distribution network across all markets, both in terms of width and depth.
Improvement of operations at factories, intelligent procuring and depot
efficiency will remain top priority across all levels of the Company through
proper selection, training of manpower and best utilization of other available
resources. Specifically, during the present year, the Company plans to
introduce a new range of products for insulating buildings from heat of the
sun. In addition, it will also concentrate on developing specialized
applications targeted towards customer industries.
Projects
1) The Company has
acquired 48 acres of land in Hindupur, Andhra Pradesh for setting up a
state-of-the-art water based paint plant along with emulsion manufacturing
facility. The capacity of the plant will be 150,000 KL / MT per annum.
Application for environmental clearance is in progress and the plant is
expected to be commissioned in 2012.
2) The Company is
in the process of setting up a resin manufacturing facility at the existing
3) The capacity of
water based paint plant at
4) The Company is expanding
the capacity of water based paint plant at Rishra,
5) The Company
will enhance the capacity of powder coating plant at
6) The Company has
recommenced its work of putting up an Industrial coatings manufacturing plant
in Jejuri near Pune.
Opportunities and
Threats
Given the current
trend in economy and a good monsoon, demand curve for paint should continue to
be steeper than the overall growth rate. In the long term, customers will
demand value added services, significant quality attributes, better service and
wider ranges and finishes in the paints business. Increased access to audio
visual media and communication devices and higher consciousness of aesthetics
and lifestyle in families are giving new meaning to paints – that from luxury
to need. The applicators, painters and ordinary customers now approach paint
counters with more knowledge of colour and of utility. It is now recognized by
consumers that paints serve two-fold purpose of protection and beauty. The
Company sees this to be a key driver of growth not only in urban but also in
semi-urban and rural areas.
Higher activities
in the industry and infrastructure sectors will push demands for specialized
applications in these sectors. The key lies in understanding customer needs and
providing them with technologically compatible solutions, rather than off the
shelf products and archaic service patterns.
One of the main
features of
SUBSIDIARIES AND
JOINT VENTURES
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”), Cyprus, subsidiary of its subsidiary company, Berger Cyprus – namely,
Berger Paints Overseas Limited (“BPOL”), Russia, Lusako Trading Limited
(“Lusako”), Cyprus, and subsidiary of its subsidiary company, Lusako - namely
Bolix S.A., Poland (“Bolix”), 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. The Company has made an application for obtaining exemption under
Section 212 of the Act from the Ministry of Corporate Affairs from annexing to
this Report the Annual Reports of the above subsidiaries for the year ended
31st March, 2010 and the approval is expected soon. 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.
There was some
slow down in business in
Results of
BJN-Nepal, showed substantial improvement. During the year , BJN-Nepal achieved
a turnover of Rs. 305.12 million and Profit Before Tax of Rs. 42.35 million.
Its second decorative paint plant at Hetuada Industrial Area, having a capacity
of 18,000 KL/MT per annum commenced operations during the year.
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. 101.55 million and the Profit Before Tax
was Rs. 1.5 million. Beepee Coatings is on the verge of commissioning an
emulsion plant with a capacity of 20,000 tonnes per annum.
Berger Paints (
Berger Paints
Overseas Limited in
The Company’s
joint venture, Berger Becker Coatings Private Limited has established itself
firmly in its niche market. This is evident in the results during the year in which it has posted a Profit Before Tax of
Rs. 16.07 million.
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 of
automobiles substantially increased its business in the second year of
operations and has posted profits in the last two months of the year . This
trend is expected to continue. During the year, the Company invested an amount
of Rs. 19.6 million towards subscription to 19,600 equity shares of BNB of a
face value of Rs. 1,000 each. The Company’s equity holding in BNB continues to
be 49%.
The Company’s
joint venture in the form of Pnb Principal Advisory Company Private Limited
continued its business of direct broking.
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
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
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.
AUDITED
RESULTS YEAR ENDED 31.03.2011
|
Particulars |
31.03.2011 Rs. In Millions |
|
1. a) Net Sales/Income From Operation |
20962.200 |
|
b) Other Operating Income |
46.000 |
|
|
|
|
2. Expenditure |
|
|
a)(Increase)/Decrease in stock in trade work in progress |
(573.700) |
|
b) Consumption of raw materials |
12757.300 |
|
b) Purchase of traded goods |
1205.200 |
|
c) Staff Cost |
1076.200 |
|
d) Depreciation |
299.800 |
|
e) Other Expenditure |
4369.200 |
|
Total |
19134.000 |
|
|
|
|
3. Profit for operations before other Income,
Interest and Exceptional items ( 1-2 ) |
1874.200 |
|
4. Other Income |
358.700 |
|
5. Profit before Interest and
Exceptional items ( 3+4 ) |
2232.900 |
|
6. Interest |
121.800 |
|
7. Profit after Interest but before
Exceptional items ( 5-6 ) |
2111.100 |
|
8. Exceptional items |
-- |
|
9. Profit
(+)/Loss(-) from Ordinary Activities before Tax ( 7+8 ) |
2111.100 |
|
|
|
|
10. Tax Expenses |
628.000 |
|
11. Net Profit
(+)/Loss(-) from Ordinary Activities after Tax ( 9-10 ) |
1483.100 |
|
12. Extraordinary items (net of tax expenses Rs.) |
-- |
|
13. Net Profit
(+)/Loss(-) for the period (11-12) |
1483.100 |
|
14. Paid Up-Equity Share Capital (Face Value of Rs.2/- each) |
692.100 |
|
15.Reserve Excluding, Revaluation Reserve as per balance |
6519.900 |
|
16. Earnings per shares (EPS) A.) Basic EPS (Rs.) |
4.29 |
|
B) Diluted EPS (Rs.) |
4.28 |
|
17. Public Shareholdings |
84482781 |
|
No. of Shares |
24.41 |
|
Percentage of Shareholding |
|
|
18. Promoter and
Promoter Group Shareholding |
|
|
a) Pledged /
Encumbered |
|
|
- Number of
Shares |
Nil |
|
- Percentage of
Shares (as a % of total shareholding of promoter and promoter group) |
Nil |
|
- Percentage of
Shares (as a % of total share capital of the Company) |
Nil |
|
b)
Non-Encumbered |
|
|
Number of Shares
|
261589683 |
|
- Percentage of
shares (as a % of total shareholding of promoter and promoter group) |
100.00 |
|
- Percentage of
shares (as a % of total share capital of the company) |
75.59 |
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.58 |
|
|
1 |
Rs.71.75 |
|
Euro |
1 |
Rs.64.80 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
8 |
|
--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 |
|
77 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.