Business
information report
1. Summary Information
|
|
|
Country |
India |
|
Company Name |
ASIAN PAINTS LIMITED |
Principal Name 1 |
Mr. Ashwin C. Choksi |
|
Status |
Very Good |
Principal Name 2 |
Mr. Abhay Vakil |
|
|
|
Registration # |
11-004598 |
|
Street Address |
Asian Paints
House, 6A Shanti Nagar, Vakola Pipeline , Santacruz (East), Mumbai - 400 055,
|
||
|
Established Date |
24.10.1945 |
SIC Code |
-- |
|
Telephone# |
91-22-56958000 |
Business Style 1 |
Manufacturers |
|
Fax # |
91-22-56958803 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Synthetic Enamel Other Colours |
|
|
# of employees |
3500
(approximately) |
Product Name 2 |
Phthalic Anhydride |
|
Paid up capital |
Rs.
959,197,790/- |
Product Name 3 |
Pentaerythritol |
|
Shareholders |
Promoter and Promoter
Group – 52.65% Public
Shareholding – 47.35% |
Banking |
State Bank of India |
|
Public Limited Corp. |
Yes |
Business Period |
66 Years |
|
IPO |
Yes |
International Ins. |
- |
|
Public |
Yes |
Rating |
Aa (75) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Associates |
India |
Dutch Boy Phillppines Inc |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
6,582,800,000 |
Current Liabilities |
10,819,800,000 |
|
Inventories |
10,717,600,000 |
Long-term Liabilities |
648,600,000 |
|
Fixed Assets |
10,571,900,000 |
Other Liabilities |
7,395,000,000 |
|
Deferred Assets |
0,000 |
Total Liabilities |
18,863,400,000 |
|
Invest& other Assets |
10,744,300,000 |
Retained Earnings |
18,794,000,000 |
|
|
|
Net Worth |
19,753,200,000 |
|
Total Assets |
38,616,600,000 |
Total Liab. & Equity |
38,616,600,000 |
|
Total Assets (Previous Year) |
31,341,500,000 |
|
|
|
P/L Statement as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Sales |
63,222,400,000 |
Net Profit |
7,751,500,000 |
|
Sales(Previous yr) |
51,250,800,000 |
Net Profit(Prev.yr) |
7,745,000,000 |
MIRA
INFORM REPORT
|
Report Date : |
17.10.2011 |
IDENTIFICATION DETAILS
|
Name : |
ASIAN PAINTS LIMITED (w.e.f.02.06.2005) |
|
|
|
|
Formerly Known As : |
ASIAN PAINTS INDIA LIMITED |
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|
|
|
Registered
Office : |
Asian Paints House,
6A Shanti Nagar, Vakola Pipeline , Santacruz (East), Mumbai - 400 055, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
24.10.1945 |
|
|
|
|
Com. Reg. No.: |
11-004598 |
|
|
|
|
Paid-Up
Capital : |
Rs. 959.200
Millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L24220MH1945PLC004598 |
|
|
|
|
TAN No.: (Tax
Deduction & Collection Account No.) |
MUMA00665A NGPA00953B |
|
|
|
|
PAN No.: (Permanent
Account No.) |
AAACA3622K |
|
|
|
|
Legal Form: |
Public Limited
Liability Company. The Company’s Shares are Listed on the Stock Exchange. |
|
|
|
|
Line of
Business : |
Manufacturers of
Paints |
|
|
|
|
No. of
Employees : |
3500
(approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (75) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 7900000 |
|
|
|
|
Status : |
Very Good |
|
|
|
|
Payment
Behaviour : |
Regular |
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|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well
established and a reputed company having fine track. Financial position of
the company appears to be sound. Fundamentals are strong and healthy. Trade
relations are reported as fair. Business is active. Payments are reported to
be regular and as per commitments. The company can
be considered normal for 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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered/
Mumbai Office: |
Asian Paints House,
6A Shanti Nagar, Vakola Pipeline , Santacruz (East), Mumbai – 400 055, |
|
Tel. No.: |
91-22-56958000/
39818000/39818990 |
|
Fax No.: |
91-22-56958803/
8888/ 8107/ 39818888 /39818787 |
|
E-Mail : |
compliance.officer@asianpaints.com
|
|
Website : |
|
|
|
|
|
Head Office : |
Nirmal, 5th
Floor, Nariman Point, Mumbai - 400 021, |
|
Tel. No.: |
91-22-22024544/
22024517/ 22024799 |
|
Fax No.: |
91-22-22028993 |
|
|
|
|
Factory : |
Plot No.2702, GIDC Industrial Area, Ankleshwar -
393 002,
B5-B10, SIPCOT Industrial Complex, Cuddalore – 607 005,
Plot No.3/25, MIDC Taloja, Raigad – 410
208,
|
|
|
|
|
Mumbai Office : |
912, Raheja
Centre, Free |
|
Tel. No. : |
91-22-22881568/
1569/ 4527/ 22825163 |
|
Fax No. : |
91-22-22825484 |
|
Email : |
|
|
|
|
|
Accounts,
Materials/ Phthalic
Division : |
Plot No. 5, Gaiwadi
Industrial Estate, S. V. Road, Goregaon (West), Mumbai – 400 062,
Maharashtra, India |
|
|
|
|
Penta
Division: |
Warehouse No. E -
89, |
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|
|
|
Sales Offices
: |
Located at:
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|
|
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Regional
Distribution Centers : |
Located at:
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|
|
|
|
Overseas
Offices : |
Located at:
|
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Ashwin C. Choksi |
|
Designation : |
Chairman and Managing Director |
|
Qualification : |
M. Com. |
|
Date of Appointment : |
01.01.1965 |
|
|
|
|
Name : |
Mr. Ashwin S Dani |
|
Designation : |
Vice Chairman and Managing Director |
|
Qualification : |
B.Sci (Hons.), B.Sci (Tech.), M.S. |
|
Date of Appointment : |
01.10.1968 |
|
|
|
|
Name : |
Mr. Abhay Vakil |
|
Designation : |
Managing Director |
|
Qualification : |
B.Sci., B.S. |
|
Date of Appointment : |
05.08.1974 |
|
|
|
|
Name : |
Mr. P. M. Murty |
|
Designation : |
Managing Director and Chief Executive Officer |
|
|
|
|
Name : |
Mr. Mahendra C
Choksi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Amar A Vakil |
|
Designation : |
Director |
|
|
|
|
Name : |
Ina Dani |
|
Designation : |
Additional Director (w.e.f 27.07.2010) |
|
|
|
|
Name : |
Mr. Hasit Ashwin
Dani |
|
Designation : |
Additional Director |
|
|
|
|
Name : |
Ms. Tarjani Vakil
|
|
Designation : |
Chariperson of Audit Committee and Director |
|
|
|
|
Name : |
Mr. Dipankar Basu |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Mahendra Shah |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Deepak M.
Satwalekar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R. A. Shah |
|
Designation : |
Additional Director |
|
|
|
|
Name : |
Dr. Swaminathan
Sivaram |
|
Designation : |
Additional Director |
|
|
|
|
Name : |
Mr. Mahendra M.
Shah |
|
Designation : |
Additional Director |
|
|
|
|
Name : |
Mr. S Ramadorai |
|
Designation : |
Additional Director |
KEY EXECUTIVES
|
Name : |
Mr. Jayesh
Merchant |
|
Designation : |
Chief Finance Officer and Company Secretary |
|
|
|
|
Audit
Committee: |
|
|
|
|
|
Remuneration
Committee: |
|
|
|
|
|
Shareholders
Grievance/ Investors Grievance Committee: |
|
|
|
|
|
Share Transfer
Committee: |
|
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2011
|
Category of Shareholder |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
9562745 |
9.97 |
|
|
39694424 |
41.38 |
|
|
1241806 |
1.29 |
|
|
1241806 |
1.29 |
|
|
50498975 |
52.65 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
50498975 |
52.65 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1703848 |
1.78 |
|
|
7892 |
0.01 |
|
|
7105212 |
7.41 |
|
|
16602308 |
17.31 |
|
|
25419260 |
26.50 |
|
|
|
|
|
|
5435115 |
5.67 |
|
|
|
|
|
|
12064893 |
12.58 |
|
|
920402 |
0.96 |
|
|
1581134 |
1.65 |
|
|
1581134 |
1.65 |
|
|
20001544 |
20.85 |
|
Total Public shareholding (B) |
45420804 |
47.35 |
|
Total (A)+(B) |
95919779 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
95919779 |
- |
(1) Indian
Individuals / Hindu Undivided Family
TrustsBUSINESS DETAILS
|
Line of
Business : |
Manufacturers of
Paints |
||||||||
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|
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|
Products : |
|
PRODUCTION STATUS (As on 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
|
|
|
|
|
(a) Paints, enamels, varnishes – In House(2) |
MT / KL |
594150 |
474881(4) |
|
- Contract |
|
|
210882 |
|
(b) Synthetic Resins (For mainly captive
consumption) |
MT |
188880 |
123992(5) |
|
(c) Phthalic Anhydride |
MT |
29796 |
21241(6) |
|
(d) Maleic Acid |
MT |
4860 |
3483 |
|
(e) Pentaerythritol |
MT |
5400 |
5400(7) |
|
(f) Sodium Formate |
MT |
3300 |
3226 |
|
(g) Formaldehyde (100%)(8) - Cuddalore |
MT |
8100 |
5951 |
|
- Purchase |
|
- |
- |
Note:
1. Installed capacities are as certified by the management on which
auditors have relied.
2. Manufacturing plants at Mumbai, Ankleshwar, Patancheru, Kasna,
Sriperumbudur and Taloja.
3. Manufacturing plants at Mumbai, Ankleshwar, Patancheru, Kasna,
Sriperumbudur.
4. Includes 6,662 MT (Previous year 6,012 MT) of products processed for
third party.
5. Includes 2,823 MT (Previous year 2,210 MT) of resins processed for
third party.
6. Includes 13,225 MT (Previous year 10,696 MT) Phthalic Anhydride transferred
to paint plants
for captive consumption.
7. Includes 2,424 MT (Previous year 2,375 MT) Pentaerythritol
transferred to paint plants for
captive consumption.
8. Mainly for internal consumption in the manufacture of
Pentaerythritol.
GENERAL INFORMATION
|
No. of Employees : |
3500
(approximately) |
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Bankers : |
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Facilities : |
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|
Banking
Relations : |
-- |
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|
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|
Auditors : |
|
|
Name : |
Shah and Company Chartered Accountants |
|
|
|
|
Name : |
BSR and Associates Chartered Accountants |
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|
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|
Associates Company : |
|
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Direct
Subsidiaries: |
|
|
|
|
|
Subsidiaries of wholly owned Subsidiaries, Asian Paints
(International) Limited, |
|
|
|
|
|
Subsidiary of
Asian Paints (South Pacific) Limited : |
* The Company ceased
trading and has transferred its assets, liabilities and business to
shareholder Asian Paints (South Pacific) Limited, but it still continues to
remain a separate legal entity pending legal formalities. |
|
|
|
|
Subsidiaries of Berger
International Limited, |
|
|
|
|
|
Subsidiary of |
|
|
|
|
|
Subsidiary of
Enterprise Paints Limited : |
|
|
|
|
|
Subsidiary of
Nirvana Investments Limited : |
|
|
|
|
|
Subsidiaries of
Lewis Berger (Overseas Holdings) Limited : |
|
|
|
|
|
Subsidiary of
Universal Paints Limited : |
|
|
|
|
|
Joint Venture : |
|
|
|
|
|
Subsidiary Joint
Venture : |
|
|
|
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|
Companies
controlled by Directors/Relatives of Directors : |
|
|
|
|
|
Employee Benefit
Funds where control exists : |
|
|
|
|
|
Other entities
over which there is a significant control : |
|
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
99500000 |
Equity Shares |
Rs.10/- each |
Rs. 995.000 millions |
|
50000 |
11% Redeemable Cumulative Preference Shares |
Rs.100/- each |
Rs. 5.000 millions |
|
|
|
|
|
|
|
Total |
|
Rs. 1000.000 millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
95919779 |
Equity Shares |
Rs.10/- each |
Rs. 959.200 millions |
|
|
a) 93,989,940 Bonus Shares of Rs.10/- each fully
paid up issued on capitalization of Share premium (Rs.21.910 millions) and
General Reserves (Rs.918.000 millions). b) 294,000 shares of Rs.10/- each issued as fully paid up pursuant to
the Scheme of Rehabilitation / Amalgamation of Pentasia Chemicals Limited,
without payment being received in cash. |
|
|
|
|
|
|
|
|
|
Total |
|
Rs. 959.200 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
959.200 |
959.200 |
959.200 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
18794.000 |
14613.000 |
9985.500 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
19753.200 |
15572.200 |
10944.700 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
234.300 |
255.900 |
245.900 |
|
|
2] Unsecured Loans |
414.300 |
430.000 |
499.400 |
|
|
TOTAL BORROWING |
648.600 |
685.900 |
745.300 |
|
|
DEFERRED TAX LIABILITIES |
755.000 |
479.000 |
479.100 |
|
|
|
|
|
|
|
|
TOTAL |
21156.800 |
16737.100 |
12169.100 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
10571.900 |
7074.600 |
6229.100 |
|
|
Capital work-in-progress |
396.700 |
3807.200 |
888.600 |
|
|
|
|
|
|
|
|
INVESTMENT |
10347.600 |
7036.900 |
2347.700 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
10717.600
|
7631.400
|
5467.100
|
|
|
Sundry Debtors |
3666.800
|
3314.300
|
3110.200
|
|
|
Cash & Bank Balances |
204.700
|
286.000
|
1282.600
|
|
|
Other Current Assets |
871.200
|
678.500
|
483.000
|
|
|
Loans & Advances |
1838.400
|
1511.000
|
1936.600
|
|
|
Interests accrued on Investment |
1.700
|
1.600
|
1.600
|
|
Total
Current Assets |
17300.400
|
13422.800
|
12281.100
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
7437.300 |
5717.100 |
3585.100
|
|
|
Other Current Liabilities |
6640.000
|
5845.600
|
4133.900
|
|
|
Provisions |
3382.500
|
3041.700
|
1858.400
|
|
Total
Current Liabilities |
17459.800
|
14604.400
|
9577.400
|
|
|
Net Current Assets |
(159.400)
|
(1181.600)
|
2703.700
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
21156.800 |
16737.100 |
12169.100 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
63222.400 |
51250.800 |
42700.500 |
|
|
|
Other Income |
881.600 |
1438.500 |
600.600 |
|
|
|
TOTAL (A) |
64104.000 |
52689.300 |
43301.100 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material Cost |
36468.700 |
28402.400 |
26069.300 |
|
|
|
Employee Cost |
3004.500 |
2608.400 |
2389.000 |
|
|
|
Manufacturing, Administrative and Selling and Distribution Expenses |
12304.200 |
10141.400 |
8629.500 |
|
|
|
Exceptional Item |
0.000 |
(254.600) |
59.000 |
|
|
|
Prior Period Item |
0.000 |
0.000 |
19.500 |
|
|
|
TOTAL (B) |
51777.400 |
40897.600 |
37166.300 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
12326.600 |
11791.700 |
6134.800 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
153.500 |
137.600 |
104.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
12173.100 |
11654.100 |
6030.800 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
944.800 |
607.400 |
571.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
11228.300 |
11046.700 |
5459.300 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
3476.800 |
3301.700 |
1835.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
7751.500 |
7745.000 |
3623.600 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
6000.000 |
2300.000 |
2000.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend |
815.300 |
815.300 |
623.500 |
|
|
|
Proposed Dividend |
2254.100 |
1774.500 |
1055.100 |
|
|
|
Tax on Dividend |
501.100 |
433.300 |
285.300 |
|
|
|
Transfer to General Reserve |
4181.000 |
1021.900 |
1359.700 |
|
|
BALANCE CARRIED
TO THE B/S |
6000.000 |
6000.000 |
2300.000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings of Own Product at FOB Value |
238.100 |
148.100 |
135.300 |
|
|
|
Export of Traded Goods at FOB Value |
7.500 |
5.600 |
9.400 |
|
|
|
Royalty |
126.300 |
149.200 |
129.800 |
|
|
|
Others Receipt
Including Recoveries from Subsidiaries |
67.600 |
41.700 |
15.500 |
|
|
|
TOTAL EARNINGS |
439.500 |
344.600 |
290.000 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
7418.500 |
4753.000 |
3806.600 |
|
|
|
Stores & Spares |
56.100 |
3.800 |
37.600 |
|
|
|
Capital Goods |
68.300 |
1076.100 |
330.000 |
|
|
|
Others |
3.800 |
4.200 |
9.100 |
|
|
TOTAL IMPORTS |
7546.700 |
5837.100 |
4183.300 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic and
Diluted – Before Exceptional Items |
80.81 |
78.09 |
38.39 |
|
|
|
Basic and
Diluted – After Exceptional Items |
80.81 |
80.74 |
NA |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
|
|
1st
Quarter |
|
Net Sales |
19221.500 |
|
Total Expenditure |
15653.500 |
|
PBIDT (Excl OI) |
3568.000 |
|
Other Income |
312.000 |
|
Operating Profit |
3880.000 |
|
Interest |
43.200 |
|
Exceptional Items |
0.000 |
|
PBDT |
3836.800 |
|
Depreciation |
241.400 |
|
Profit Before Tax |
3595.400 |
|
Tax |
1091.200 |
|
Provisions and contingencies |
0.000 |
|
Profit After Tax |
2504.200 |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
2504.200 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
12.09
|
14.70
|
8.36
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
17.76
|
21.55
|
12.79
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
40.28
|
53.89
|
29.49
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.57
|
0.71
|
0.50
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.92
|
0.98
|
0.94
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.99
|
0.92
|
1.28
|
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
Armed with little knowledge and great determination, Champaklal
H. Choksey, Chimanlal N. Choksi, Suryakant C. Dani and Arvind R. Vakil get
together to manufacture paint in a garage on
The Company was converted into a public limited company in the year 1973. A major modernisation programme was undertaken to streamline the paint production facilities by improving the layout of machines, addition to balancing equipment and replacement of old machinery during the year 1974 to meet the demand. During the year 1985, The Company had set up a third paint unit at Patancheru, a notified backward area near Hyderabad, for the manufacture of 15,000 MT of paints and enamels and also in the same year entered into a collaboration agreement with Nippon Paints Company Limited, Japan, to obtain technical know-how to manufacture powder coating and coil coatings. Company commissioned a plant for the manufacture of synthetic rubbers lattices with a capacity of 1,200 tonnes per annum in the year of 1987. In the identical year of 1987, the company jointly with Tamil Nadu Industrial Development Corporation (TIDCO) promoted a joint sector company under the name of Pentasia Chemicals Limited, (PCL), for the purpose of manufacture 3,000 TPA of pentaerythritol and 1,800 TPA of sodium format.
In the year 1990, the company had promoted Asian Paints
(South Pacific) Limited, in
During the same year 2002, the company had acquired
controlling stake of 50.1 per cent in Berger International,
During 2003-04, Pentasia Investments Limited, (wholly owned subsidiary of the company) was merged with the company. In 2004, the company had launched paint solutions for kids. In January of the year 2005, Asian Paints new paint plant at Sriperumbudur, in Tamil Nadu was commenced its production. Berger International made a partnership with Filipino firm Dutch Boy during the year 2005.
During the year 2006, the company had commissioned a
manufacturing facility for powder coatings at Baddi, Himachal Pradesh. The
Company was ranked 24th amongst the top paint companies in the world by
Coatings World - Top Companies Report 2006. In September of the year 2007,
company tailored its first exclusive industrial coatings manufacturing facility
at Taloja in
Company aims to become one of the top five Decorative
coatings companies world-wide by leveraging its expertise in the higher growth
emerging markets. Simultaneously, the company intends to build long-term value
in the Industrial coatings business through alliances with established global
partners.
STANDALONE FINANCIALS
Net sales and
operating income for the standalone entity increased to Rs. 63222.400 millions
from Rs. 51250.800 millions in the previous year – a growth of 23.4%. The
operating profit (PBDIT) increased by 6.8%, from Rs. 11537.100 millions to Rs.
12326.600 millions. The profit after tax for the current year is Rs. 7751.500
millions as against Rs. 7745.000 millions in the previous year.
MANAGEMENT
DISCUSSION AND ANALYSIS:
The global economy
staged a remarkable rebound in the last financial year reducing the fears of a
double-dip recession that some had forecast in 2009. The recovery was aided by
the continuation of stimulus measures adopted during 2008-09 by developed as
well as emerging economies including
However, globally,
the year was also characterized by periods of high uncertainty. The sovereign
debt crisis that engulfed
remain challenging
on this front.
PRODUCTS AND
MARKETS:
The paint industry
volume in
In International
Business, political turmoil in
DECORATIVE PAINTS:
Decorative paints (including
interior and exterior wall finishes, enamels, wood finishes and ancillary
products) constitutes around 72% of the paint market in
After the
overwhelming response to the Company’s Signature Store at Mumbai, the Company
has decided to invest in another store at
The Company also
significantly expanded the chain of stores called ‘Colour Ideas’, where the
consumer is provided with an environment wherein he can experience what colour
can do to his home. Here he is also provided with Colour Consultancy Services.
Consumers have responded very positively to this retail chain and the Company
is in the process of expanding it across the country. During the year, the
Company launched a number of new products. Water based wood finishes launched
in
After
commissioning of the Rohtak Plant in April 2010, the total installed paints
capacity in India stands at close to 6,00,000 KL. The synthetic resins and
polymer capacity was also augmented by 50,000 MT in FY 2010-11. In the first
year of its operations, Rohtak Plant produced in excess of 80,000 KL of paints.
Continuing ahead with its capacity expansion plans, the Company will increase
the installed capacity at the Rohtak Plant from 150,000 KL per annum to 200,000
KL per annum by fourth quarter of FY 2011-12. Construction has also commenced
at Khandala near Pune (in
INTERNATIONAL
OPERATIONS:
The financial year
2010-11 began on a challenging note. The International markets where the
Company operates in, continued to be impacted by the economic slow down,
although the South Asian countries were relatively less impacted. In addition,
political turmoil in
The focus in the
International operations during the year was on strengthening position in the
market place by initiatives to improve customer centricity, expanding the
dealer network, improving service levels, introducing new products and
installing additional dealer tinting systems. Emphasis was also placed on
tighter management of credit risk and improving internal efficiencies in all
areas of operations including working capital, fixed assets, overheads and
material cost. Sharp focus was accorded to enhance safety standards. Material
prices during the year were volatile and saw an inflationary trend due to
shortages in critical raw materials and rising prices of crude oil. The impact
of inflation was mitigated to some extent by formulation re-engineering,
economies of scale in purchasing, inventory build up and reducing losses in
manufacturing. The revenue from paint sales of the overseas operations of the
group for the year is Rs. 9750.000 millions as compared to Rs. 9790.000
millions during the previous year April 2009 - March 2010. Profit after tax for
the overseas operations of the group during the year is Rs. 879.000 millions
compared to Rs. 1047.000 millions during the previous year April 2009 - March
2010. The revenue from paint sales of Berger International Limited, a
subsidiary listed on the Singapore Stock Exchange has decreased by 16% to S$
108 million (equivalent to Rs. 3720.000 millions) from S$ 129 million
(equivalent to Rs. 4300.000 millions).
The group operates
in the following geographies:
|
Region |
Countries |
|
|
|
|
|
|
|
|
|
|
South Pacific |
|
THE REGION WISE
PERFORMANCE IS DETAILED BELOW:
During the year,
the revenue from paint sales has decreased by 3% to Rs. 1570.000 millions from
Rs. 1610.000 millions. Adjusted for exchange rate impact, the revenue from paint
sales has increased by 0.2%. PBIT (Profit before interest and tax) for the
region has increased by 12% to Rs. 120.000 millions. An all round slow down in
construction activity and reduction in tourism had a severe impact on the
MIDDLE EAST:
During the year,
the revenue from paint sales has decreased by 4% to Rs. 5160.000 millions. Adjusted
for exchange rate impact, the revenue from paint sales has increased by 2%.
PBIT for the region has decreased by 38% to Rs. 650.000 millions. The Middle
East region is the largest operating region for the group outside
For the year,
revenue from paint sales has increased by 20% to Rs. 2400.000 millions.
Adjusted for exchange rate impact, the revenue from paint sales has increased
by 21%. The PBIT for the region has decreased by 10% to Rs. 240.000 millions.
Expansion of the Color World dealer network and increased influencer
interactions through
SOUTH PACIFIC:
For the year,
revenue from paint sales has increased by 4% to Rs. 750.000 millions. Adjusted
for exchange rate impact, the revenue from paint sales has increased by 5%. The
PBIT for the region has increased by 16% to Rs. 130.000 millions. All the
subsidiaries in the region have made profit.
INDUSTRIAL
COATINGS
Automotive
Coatings: Asian PPG Industries Limited (APPG)
The Company has a
50:50 Joint Venture (JV) with PPG Industries Inc., which was formed in the year
1997, for manufacturing Automotive OEM, Refinish and certain other Industrial
Coatings. APPG is the second largest automotive coatings supplier in the
country.
The Indian
automobile industry witnessed a phenomenal growth during FY 2011-12, reaching
sales of almost 3 million passenger vehicles. Indian automobile market is on
course to a high growth trajectory owing to the overall economic fundamentals
and increasing disposable income of the working class. Good market conditions
have helped APPG further strengthen its presence in the market. Total sales
increased to Rs. 6164.800 millions in FY 2010-11 from Rs. 4768.800 millions in
FY 2009-10 — a growth of 29.3%. The profit after tax rose to Rs. 330.300
millions from Rs. 285.800 millions representing a growth of 15.6%. The
consolidated sales were Rs. 6377.700 millions and the profit after tax was Rs.
336.200 millions in FY 2010-11. Faaber Paints Private Limited (FPPL), a wholly
owned subsidiary of APPG, reported sales of Rs. 232.600 millions in FY 2010-11
as compared to Rs. 150.000 millions in the previous year. Profit after tax
declined to Rs. 7.000 millions as compared to Rs. 14.700 millions in the previous
year.
Major improvements
were effected in appearance, quality and durability of products offered to
customers during FY 2010-11. Measures adopted to contain costs and expand
volume of business paid off and helped APPG achieve its targets in spite of concerns
on raw material prices and availability. Competition amongst the coatings
suppliers is also giving leveraging power in the hands of the customer forcing
prices down. APPG’s strategy of offering better value to its customers by
providing superior products and service has enabled it to deliver superior
results. In its
maiden foray outside
The licensed
capacity of the facility at Sriperumbudur is 10,400 KL per annum; the present
installed capacity is 7,500 KL per annum. APPG has decided to further expand
the capacity of the plant to 9,140 KL at a cost of approximately Rs. 300.000
millions. The prospects of continuing high price of fuel and uncertain economic
conditions have led to doubts about sustainability of the pace of growth that
the automotive industry has witnessed in the recent past. However, while there
may be a slow down temporarily owing to high base effect, APPG is confident
about the long term prospects of the industry and feel that it is in a position
to take advantage of the growth in the market.
NON AUTO
INDUSTRIAL COATINGS
The non auto
industrial coatings market is serviced by the Company through its Growth
Business Unit (GBU) and a wholly owned subsidiary, Asian Paints Industrial
Coatings Limited (APICL). The major product segments are – Protective Coatings
General Industrial Coatings Road Marking Coatings Floor Coatings Powder
Coatings Demand for industrial products improved in the second half of FY
2010-11 against a modest increase during the first half, peaking towards the
end of the fiscal year. The improvement in demand was mainly on account of
various projects reaching the stage of painting during the second half of the
year. The Company’s strategy of focusing on sales of middle to high end
products has resulted in an improvement in the mix of products sold. There has
been an increase in the weighted average selling price on account of the
improved product mix. The inflationary trend in major raw material prices that
had commenced in the last quarter of fiscal year 09-10 continued through the
year and prices of most major raw materials increased steeply during the course
of the year. This trend was witnessed across almost all major raw materials
such as pigments, resins, solvents, oils and monomers. Increased raw material
costs combined with resistance from customers to accept the steep increase in
prices exerted pressure on margins through the year.
The Industrial
Paints plant at Taloja completed its fourth year of operations in February
2011. The first long term settlement with the workers’ union was negotiated and
signed in January 2011. Though production was affected during the negotiation
process, particularly during the third and fourth quarters of the fiscal year,
the industrial relations situation has normalized after the settlement and
production levels have been restored to expected levels. Production was stepped
up at Toll Manufacturers to cover the shortfall in production.
ASIAN PAINTS
INDUSTRIAL COATINGS LIMITED
Asian Paints
Industrial Coatings Limited (APICL), a wholly owned subsidiary of the Company,
is engaged in the manufacture and sale of Powder Coatings. There was a modest
improvement in demand conditions during the year and the sales performance of
APICL during the year reflected this market situation. The two powder coating
manufacturing facilities located at Sarigam (
PARTNERSHIP WITH
PPG
The Company has a
long standing and successful relationship with PPG Industries Inc. which is
based in
OTHERS
The Company also
produces Phthalic Anhydride and Pentaerythritol in manufacturing facilities
located at Ankleshwar (
During the year FY
2010-11, 69% of Phthalic Anhydride and 54% of Pentaerythritol produced by the
Company was transferred for internal consumption. The remaining quantity was
sold in the open market. Plant shut downs during the year owing to a planned
catalyst change operation and some unanticipated stoppages in plant operations
resulted in production of Phthalic Anhydride being lower than last year. The
lifting of safe guard duty on imports from several countries also resulted in
cheap imported material coming into the country, impacting prices in the local
market. Overall, profitability from the Phthalic Anhydride business was
affected due to the lower
production and
adverse market conditions. The profitability of the Pentaerythritol business
was higher compared to previous year. Better sales realization resulted in
higher margins from the business.
RISK AND OUTLOOK
The overall
economic outlook for 2011-12 appears to be positive but challenging. Economic
activity is expected to be buoyant in the Indian sub continent driven by good
internal as well as export demand, with Indian GDP expected to register a
growth of around 8%. Also, with early forecast predicting a normal monsoon in
2011-12, the Company expects the rural economy to perform well and support
paint demand in the rural areas. The market for Industrial products is expected
to improve on the back of thrust on infrastructure development and industrial
growth. However, there are certain risks that can impact the performance of the
Company. The turmoil in the
Risks of sovereign
defaults in the European Union remain and the recovery in rest of the developed
world is still quite fragile. Amidst talk of phasing out and withdrawal of
stimulus measures, it remains to be seen whether growth can be sustained going
forward. The recent unearthing of huge scams and the resulting logjam in
government functioning could lead to policy reform taking a backseat thereby
affecting the long term growth potential of the country apart from impacting
investor sentiments. Reserve Bank of India (RBI) has announced a series of rate
hikes in FY 2010-11 and more hikes are expected in FY 2011-12 in a bid to
control the spiraling inflation. This can have an adverse impact on demand,
particularly in interest rate sensitive sectors like housing and automobiles.
Directional movements of currency are hard to predict and volatility in
currency movements might have financial implications for the Company.
Additionally, adverse impact of the political turmoil in
|
Contingent Liabilities: (Rs. In Millions) |
31.03.2011 |
31.03.2010 |
|
|
a) |
Guarantee given
on behalf of Company’s dealers in respect of loans granted to them by a bank
for acquiring dealer tinting systems. |
53.300 |
114.100 |
|
b) |
Corporate guarantees
issued by the Company to certain banks on behalf of some of its subsidiaries. |
1306.000 |
1287.900 |
|
c) |
The Company has
issued letters of comfort/support to banks on behalf of some of its
subsidiaries from time to time and the financial support/comfort based on
such letters is limited to: The Company has
also issued a letter to the Board of a subsidiary informing its commitment to
continue extending corporate guarantees and letters of comfort for banking
facilities as included in the above for a period upto 15.05.2012. |
631.100 |
771.800 |
|
d) |
Claims against
the Company not acknowledged as debts |
|
|
|
i. |
Tax matters in
dispute under appeal |
650.200 |
415.000 |
|
ii. |
Others. |
61.100 |
52.300 |
AUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2011
(Rs. in millions)
|
Particulars |
30.06.2011 (Audited) |
|
Net Sales /Income from Operations |
19221.500 |
|
|
|
|
Expenditure |
|
|
(Increase)/decrease in stock in trade and work-in
Progress |
(725.600) |
|
Consumption of raw materials |
11888.800 |
|
Purchase of Traded Goods |
332.300 |
|
Employee Cost |
881.300 |
|
Depreciation |
241.400 |
|
Other Expenditure |
3276.700 |
|
Total Expenditure |
15894.900 |
|
Profit from Operations before Other Income and
Interest |
3326.600 |
|
Other Income |
312.000 |
|
Profit Before Interest |
3638.600 |
|
Interest |
43.200 |
|
Profit before Tax |
3595.400 |
|
Tax Expenses (including
current tax, deferred taxation, fringe benefit tax and prior period
adjustments for the period) |
1091.200 |
|
Net Profit
for the period |
2504.200 |
|
Paid- up
Equity Share Capital (Face value
of the share – Rs. 10) |
959.200 |
|
Reserves excluding
revaluation reserves (as per last audited balance sheet) |
---- |
|
Basic and
diluted Earnings per share for the period, for the year to date (not
annualized) and for the previous year – Rs. |
26.11 |
|
Public
shareholding |
|
|
Number of
Shares |
45420804 |
|
Percentage of Shareholding |
47.35 |
|
Promoters and
promoter group shareholding |
|
|
a)
Pledged / Encumbered Number of
Shares Percentage of
Shares (as a % of
the total shareholding of promoter and promoter group) Percentage of
Shares (as a % of
the total share capital of the company) b)
Non - encumbered Number of
Shares Percentage of
Shares (as a % of
the total shareholding of promoter and promoter group) Percentage of
Shares (as a % of
the total share capital of the company) |
13735650 27.20 14.32 36763325 72.80 38.33 |
SEGMENT REPORTING
|
Sl. No. |
|
Particulars |
Quarter Ended |
|
|
30.06.2011 |
||
|
|
(Audited) |
||
|
1 |
|
Segment Revenue |
|
|
|
|
|
|
|
|
|
a. Paints |
19098.100 |
|
|
|
b. Others |
623.100 |
|
|
|
|
|
|
|
|
Total |
19721.200 |
|
|
|
|
|
|
|
|
Less : Inter Segment Revenue |
(368.000) |
|
|
|
|
|
|
|
|
Net Sales / Income
from Operation |
19353.200 |
|
|
|
|
|
|
2 |
|
Segment Results (Profit / (Loss) before Tax & Interest from each Segment) |
|
|
|
|
|
|
|
|
|
a. Paints |
3611.100 |
|
|
|
b. Others |
69.200 |
|
|
|
|
|
|
|
|
Total |
3680.300 |
|
|
|
|
|
|
|
|
Less :Interest |
(43.200) |
|
|
|
Less : Unallocable Expenses |
-- |
|
|
|
Net of Unallocable Income |
(41.700) |
|
|
|
|
|
|
|
|
Total Profit Before
Tax |
3595.400 |
|
|
|
|
|
|
3 |
|
Capital Employed |
|
|
|
|
|
|
|
|
|
a. Paints |
11822.900 |
|
|
|
b. Others |
459.600 |
|
|
|
c. Unallocable Assets less Liabilities |
9974.900 |
|
|
|
|
|
|
|
|
Total |
22257.400 |
|
Note: Other includes Company’s business units manufacturing Phthalic Anhydride and Pentaerythrilol. |
|||
Notes:
1.
The above results were reviewed by the Audit
Committee on 25th July, 2011 and approved by the Board of Directors at their
meeting held on 26th July, 2011.
2.
During the quarter ended 30th June, 2011, three investor
complaints were received and resolved. No investor complaints were pending at
the beginning of the said quarter and no complaints were lying unresolved at
the end of the quarter.
3.
A final dividend of Rs. 23.50 per equity share of
the face value of 10 each for the financial year 2010-2011 was approved by the
shareholders at the Annual General Meeting held on 24th June, 2011 and the same
was paid on 27th June, 2011.
4.
As a first step to the formation of a second Joint
Venture with PPG Industries Inc., USA, a new company named AP Coatings Limited
was incorporated during the previous financial year as a Wholly Owned
Subsidiary of the Company. On 1st June, 2011, the Net Working Capital
aggregating to Rs. 557.900 millions, pertaining to the Company's Industrial
business was transferred to AP Coatings Limited, for which 5,00,00,000 equity
shares of 10 each, aggregating to 50,00,00,000 was allotted to the Company and
the balance was received in cash from the said subsidiary. Till the formation
of this new Joint Venture, the Industrial business will be carried out by AP
Coatings Limited and this change does not have any material impact on the
company's results.
Net sales of the current period include Rs. 424.200 millions of
inventory sold to AP Coatings Limited as part of the Net Working Capital of Rs.
557.900 millions as stated above.
5.
During the quarter, the Company invested Rs.150.000
millions in AP Coatings Limited, Company's wholly owned subsidiary, by
subscribing to 1,50,00,000 equity shares of 10 each of the said subsidiary.
6. The previous
period figures have been regrouped wherever required.
FIXED ASSETS:
- Buildings
- Plant and Machinery
- Scientific Research:
o Equipment
o Buildings
- Furniture and Office Equipment
- Vehicles
- Leased Assets: Equipment
- Trademark
- Software
WEB SITE DETAILS
NEWS
PRESS RELEASE
ASIAN PAINTS
CONSOLIDATED NET PROFIT UP BY 18.7 %
Consolidated Net
Sales increase by 23.5 % to Rs. 22604.000 millions
Mumbai, July 26,
2011: Asian Paints today announced its financial results for the first quarter
ended June 30, 2011.
Consolidated
Results: Q1-FY’12: For the quarter ended June 30, 2011, on consolidation of
accounts of the subsidiaries and joint venture of Asian Paints – Net Profit of
the Group has increased by 18.7 % to Rs. 2637.000 millions from Rs. 2222.000
millions over the previous corresponding quarter. Sales and Operating Income
has risen by 23.5 % to Rs. 22604.000 millions from Rs. 18302.000 millions.
Profit before depreciation, interest and tax (PBDIT) for the group has
increased by 15.6 % to Rs. 4227.000 millions from Rs. 3655.000 millions. Profit
before Tax has increased by 15.8 % to Rs. 3871.000 millions from Rs. 3344.000
millions.
“The Company
witnessed good growth during the quarter driven by favorable demand for
decorative coatings across the country. However, demand in June has not been
robust. Demand conditions for international and industrial businesses continue
to be challenging” said PM Murty, MD and CEO, Asian Paints Limited. “Input cost
rose sharply necessitating price increases aggregating to 8% till now. The
impact of these increases on demand will need to be gauged”; he added.
.
Standalone
Results: Q1-FY’12: For the quarter ended June 30, 2011, Net Profit on a
standalone basis increased by 24.6 % to Rs. 2504.000 millions from Rs. 2010.000
millions. Net Sales increased by 28.9 % to Rs. 19222.000 millions from Rs.
14911.000 millions. PBDIT for the quarter increased by 22 % to Rs. 3880.000
millions from Rs. 3181.000 millions. Profit before tax has increased by 22.5%
to Rs. 3595.000 millions from Rs. 2935.000 millions.
About Asian Paints
Limited:
Asian Paints is
India’s largest paint company and ranked among the top ten Decorative coatings
companies in the world with a turnover of Rs. 77.06 billion. Asian Paints along
with its subsidiaries have operations in 17 countries across the world with 24
paint manufacturing facilities, servicing consumers in 65 countries through
Berger International, SCIB Paints – Egypt, Asian Paints, Apco Coatings and Taubmans.
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.49.06 |
|
|
1 |
Rs.77.41 |
|
Euro |
1 |
Rs. 67.72 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
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 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
75 |
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.