MIRA
INFORM REPORT
|
Report Date : |
17.01.2012 |
IDENTIFICATION DETAILS
|
Name : |
SHALIMAR PAINTS LIMITED |
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Registered
Office : |
Goaberia, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
16.12.1902 |
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Com. Reg. No.: |
21-001540 |
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Capital
Investment / Paid-up Capital : |
Rs.37.857 Millions |
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CIN No.: [Company Identification
No.] |
L24222WB1902PLC001540 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
CALS12945C |
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PAN No.: [Permanent Account No.] |
AAECS0547D |
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Legal Form : |
It is a public limited liability company. The company’s shares are listed on the
Stock Exchanges. |
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Line of Business
: |
Manufacturing of Paint, Enamels and Varnishes. |
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No. of Employees
: |
500 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (55) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 2100000 |
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Status : |
Good |
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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 position of the company appears to be sound. Directors are reported to be experienced and respectable businessmen. 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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
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Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
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 1: |
Goaberia, |
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Tel. No.: |
91-33-26443201/02 |
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Fax No.: |
91-33-26443540 |
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E-Mail : |
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Website : |
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Corporate Office : |
5th Floor, ‘C’ Wing, |
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Tel. No.: |
91-22-28574043/6147 |
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Fax No.: |
91-22-28573725 |
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E-Mail : |
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Factory 2 : |
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Tel. No.: |
91-2553-225002 |
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Factory 3 : |
A 1 and A 2, UPSIDC Industrial Area, Sikandrabad,
District Bulandsahar - 203205, |
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Tel. No.: |
91-5735-221793 |
DIRECTORS
AS ON : 31.03.2011
|
Name : |
Mr. R. Jindal |
|
Designation : |
Director |
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Name : |
Mr.
G. Jhunjhnuwala |
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Designation : |
Chairman cum Managing Director |
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|
Name : |
Mr.
A. V. Lodha |
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Designation : |
Director |
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Name : |
Mr.
R. Garg |
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Designation : |
Director |
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Name : |
Mr.
R. Srinivasan |
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Designation : |
Director |
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Name : |
Mr.
Pujit Aggarwal |
|
Designation : |
Director |
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Name : |
Mr. S Sarda |
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Designation : |
Executive Director and Chief Executive Officer |
KEY EXECUTIVES
|
Name : |
Dr. S. K. Pal |
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Designation : |
Vice President – Operations ( |
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Name : |
Mr. T. R. Sharma |
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Designation : |
Vice President (Operations - Nashik) |
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Name : |
Mr. Sujit Sinha |
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Designation : |
Vice President - (Industrial Sales) |
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Name : |
Mr. Sunil Choudhary |
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Designation : |
Head-Finance and Accounts |
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Name : |
Dr. Swapan Ghosh |
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Designation : |
Vice President – R&D |
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Name : |
Mr. Nitin Sawle |
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Designation : |
Vice President – Sales and Marketing
(Deco.) |
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Name : |
Mr. K Mathew Joseph |
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Designation : |
General Manager – Systems |
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Name : |
Mr. Soumitra Ganguly |
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Designation : |
General Manager – Supply Chain |
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Name : |
Mr. Pranab Kumar Maity |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
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|
45000 |
1.19 |
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|
1133214 |
29.93 |
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|
1178214 |
31.12 |
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|
|
|
|
|
1180314 |
31.18 |
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|
1180314 |
31.18 |
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Total
shareholding of Promoter and Promoter Group (A) |
2358528 |
62.30 |
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(B) Public Shareholding |
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|
50 |
-- |
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|
125080 |
3.30 |
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|
125130 |
3.31 |
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|
751068 |
19.84 |
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|
|
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|
447831 |
11.83 |
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|
77261 |
2.04 |
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|
25802 |
0.68 |
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|
25802 |
0.68 |
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|
1301962 |
34.39 |
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Total
Public shareholding (B) |
1427092 |
37.70 |
|
Total
(A)+(B) |
3785620 |
100.00 |
|
(C) Shares
held by Custodians and against which Depository Receipts have been issued |
-- |
-- |
|
(1) Promoter and Promoter Group |
-- |
-- |
|
(2) Public |
-- |
-- |
|
Sub
Total |
-- |
-- |
|
Total
(A)+(B)+(C) |
3785620 |
-- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs.0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Manufacturing of Paint, Enamels and Varnishes. |
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Products : |
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PRODUCTION STATUS
(As on 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Paint, Enamels and Varnishes N.C. Lacquers and Ancillaries
Items (Packed for |
Tones |
57000 |
52204 |
|
Synthetic Resin (mainly for Captive Consumption) |
Tones |
7672 |
2395 |
GENERAL INFORMATION
|
No. of Employees
: |
500 (Approximately) |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Chaturvedi
and Partners Chartered
Accountants |
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Subsidiaries : |
·
Shalimar Adhunik Nirman Limited |
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|
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Related parties : |
·
Atlas Tin Box Co ·
Aurum Pharmachem Private Limited ·
Anand Packaging ·
Associated Containers and Barrels Private Limited ·
Arvind Cans Limited ·
Baba Container Manufacturers ·
Bijaya Drums Private Limited ·
Calcutta Containers Company ·
·
Containers and Seals ·
Choudhary Tar and Chemicals ·
Choudhary Industries ·
Cross Point Chemical Industries ·
Damani Packaging Private Limited ·
Evergreen Drums and Cans Private Limited ·
Floana Coatings ·
Globe Logistics ( ·
Indian Tin Box Manufacturing Company Private
Limited ·
J.S. Transystem ·
Krishna Technochem Private Limited ·
Kapilesh Udyog ·
Karna Paints private Limited ·
K B Engineering Company Private Limited ·
Mastan Tin Works ·
Maxim ·
Micas Organics Limited ·
Mittal Containers Private Limited ·
Mangla Metals Private Limited ·
Moongipa Roadways ·
Pearson Drums and Barrels Private Limited ·
Pearson Containers Company ·
Piyanshu Chemicals Private Limited ·
Regent Paints Private Limited ·
S.R. Packaging and Industries Private Limited ·
Sunflag Chemicals Private Limited ·
Sam Transport Private Limited ·
Surya Containers Private Limited ·
Somani Oil Industries ·
Somani Oils and Chemicals ·
Shri Metal Containers ·
·
Todi Bulk Carriers Private Limited ·
Tin Box Company ·
Techcon India Private Limited ·
20 Microns Nano Minerals Limited ·
Western Cans Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
8000000 |
Equity Shares |
Rs.10/- each |
Rs.80.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
3785620 |
Equity Shares |
Rs.10/- each |
Rs. 37.856
Millions |
|
|
Share Forfeiture Account |
|
Rs. 0.001
Million |
|
|
Total |
|
Rs. 37.857 Millions |
Note: Of the above equity shares 1260840 shares were
allotted as fully paid by way of bonus shares by capitalization of reserves.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
37.857 |
37.857 |
37.857 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
499.234 |
418.459 |
352.966 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
537.091 |
456.316 |
390.823 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
585.358 |
482.664 |
567.026 |
|
|
2] Unsecured Loans |
14.533 |
19.445 |
37.047 |
|
|
TOTAL BORROWING |
599.891 |
502.109 |
604.073 |
|
|
DEFERRED TAX LIABILITIES |
31.513 |
28.160 |
23.804 |
|
|
|
|
|
|
|
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TOTAL |
1168.495 |
986.585 |
1018.700 |
|
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
336.478 |
320.556 |
258.380 |
|
|
Capital work-in-progress |
3.104 |
1.572 |
0.515 |
|
|
|
|
|
|
|
|
INVESTMENT |
7.973 |
7.973 |
2.973 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
831.160
|
628.497
|
505.731
|
|
|
Sundry Debtors |
1130.099
|
918.113
|
785.494
|
|
|
Cash & Bank Balances |
106.442
|
100.846
|
135.873
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
101.226
|
113.595
|
129.815
|
|
Total
Current Assets |
2168.927
|
1761.051
|
1556.913
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1032.501
|
866.577
|
705.557 |
|
|
Other Current Liabilities |
261.696
|
186.988
|
77.199
|
|
|
Provisions |
53.790
|
51.002
|
17.325
|
|
Total
Current Liabilities |
1347.987
|
1104.567
|
800.081
|
|
|
Net Current Assets |
819.940
|
656.484
|
756.832
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1168.495 |
986.585 |
1018.700 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
4044.461 |
3655.675 |
3308.830 |
|
|
|
Other Income |
31.757 |
31.864 |
28.684 |
|
|
|
TOTAL (A) |
4076.218 |
3687.539 |
3337.514 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials consumed |
2525.940 |
2208.348 |
1970.547 |
|
|
|
Purchase of bought-in-items |
152.253 |
114.327 |
97.195 |
|
|
|
Employees remuneration and other benefits |
227.316 |
197.356 |
160.062 |
|
|
|
Discounts and rebates |
490.377 |
461.643 |
432.551 |
|
|
|
Manufacturing, administrative, selling and other expenses |
532.937 |
523.651 |
376.191 |
|
|
|
Exceptional items |
0.000 |
0.000 |
20.868 |
|
|
|
Increase/ decrease in stocks |
(136.695) |
(78.759) |
102.122 |
|
|
|
TOTAL (B) |
3792.128 |
3426.566 |
3159.536 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
284.090 |
260.973 |
177.978 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES/ INTEREST (D) |
83.728 |
75.996 |
80.588 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
200.362 |
184.977 |
97.390 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
33.973 |
33.818 |
33.999 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAX
(E-F) (G) |
166.389 |
151.159 |
63.391 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
49.704 |
51.156 |
27.759 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
116.685 |
100.003 |
35.632 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
64.633 |
57.847 |
45.502 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
70.000 |
60.000 |
10.000 |
|
|
|
Dividend |
30.285 |
28.392 |
11.357 |
|
|
|
Tax on Dividend |
4.913 |
4.825 |
1.930 |
|
|
BALANCE CARRIED
TO THE B/S |
76.120 |
64.633 |
57.847 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
220.501 |
199.062 |
156.231 |
|
|
TOTAL IMPORTS |
220.501 |
199.062 |
156.231 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
30.82 |
26.42 |
9.41 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
|
|
30.06.2011 |
30.09.2011 |
|
|
|
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
|
1010.30 |
1105.10 |
|
Total Expenditure |
|
|
947.40 |
1034.80 |
|
PBIDT (Excl OI) |
|
|
62.90 |
70.30 |
|
Other Income |
|
|
3.90 |
2.60 |
|
Operating Profit |
|
|
66.80 |
72.90 |
|
Interest |
|
|
22.80 |
27.00 |
|
Exceptional Items |
|
|
0.00 |
0.00 |
|
PBDT |
|
|
44.00 |
45.90 |
|
Depreciation |
|
|
9.80 |
11.00 |
|
Profit Before Tax |
|
|
34.20 |
34.90 |
|
Tax |
|
|
11.10 |
11.30 |
|
Provisions and contingencies |
|
|
0.00 |
0.00 |
|
Profit After Tax |
|
|
23.10 |
23.60 |
|
Extraordinary Items |
|
|
0.00 |
0.00 |
|
Prior Period Expenses |
|
|
0.00 |
0.00 |
|
Other Adjustments |
|
|
0.00 |
0.00 |
|
Net Profit |
|
|
23.10 |
23.60 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
2.86
|
2.71
|
1.07 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.11
|
4.13
|
1.91 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.64
|
7.26
|
3.49 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.31
|
0.33
|
0.16 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.63
|
3.52
|
3.59 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.61
|
1.59
|
1.95 |
LOCAL AGENCY FURTHER INFORMATION
Dividend
Payment of
dividend at the rate of Rs.8/- per equity share amounting to Rs.30.300 Millions
as compared to Rs.7.50 per equity share declared last year.
Review of
operations
The Company's turnover
has increased from Rs.3940.000 Millions in 2009-10 to Rs.4400.000 Millions in
2010-11. Both the Decorative and Industrial segments have grown reasonably
well. However, with the increase in international crude prices, the raw
material prices particularly of solvent based raw materials, have increased
sharply. This has affected the overall operating margins.
In spite of sharp
increase in the raw material prices the Company has, with improvement in
operational efficiencies and changes in the product mix, improved its PBIDT
from Rs.261.000 Millions in 2009-10 to Rs.284.000 Millions in 2010-11.
There has also
been increase in the interest rates by all the working capital bankers.
Further, in order to finance the increased volume of business, the utilisation
levels have also increased. As a result of higher utilisation and increased
interest rates, the interest costs have increased from Rs.76.000 Millions to
Rs.83.700 Millions.
The Profit before
Tax has increased from Rs.151.200 Millions to Rs.166.400 Millions.
Tinting systems
The Company
continued with its policy of installation of tinting systems at various retail
outlets across the country with a view to increase the demand for its high
value products, especially water based products.
ISO Certifications
All the three plants of the Company at
Management Discussion and Analysis
Industrial Structure and Development
There has been pick
up of demand in both the Decorative and Industrial segments. However the high
inflation is a matter of concern. Further there has also been a considerable
increase in the raw material prices. The sharp increase in international crude
prices have resulted in considerable increase in the prices of solvent based
raw materials.
Both the
Decorative and Industrial segments have witnessed increased demand. In the
Decorative sector the real estate and infrastructure development is driving the
demand. In the Industrial sector there has been a significant increase in the
demand in the automotive sector which has driven the demand for industrial
paints. However demand in non automotive industrial segment remained muted.
The Company has
achieved reasonable growth in both the Decorative and Industrial segments.
Since there was considerable increase in the raw materials prices, the paint
companies had to increase prices of various products. Hence the sales value
increase in 2010-11 is much higher than the volume increase.
Outlook
The Indian economy
is expected to grow at about 8-8.5% in 2011-12. However the growth could be
impacted on account of inflationary pressures. The global economic scenario
could also have an impact on the growth of the Indian economy. The Company's
endeavour will be to tap the market potential and increase its market share
both in the decorative as well as the industrial segment.
Fixed Assets
·
Land
·
Building
·
Plant and Machinery
·
Furniture and Fittings
·
Lease Equipment
·
Office Equipments
·
Motor Car
·
Other Vehicles
Contingent
Liabilities:
|
Particular |
As
on 31.03.2011 (Rs. in Millions) |
As
on 31.03.2010 (Rs. in Millions) |
|
Excise Duty |
23.450 |
14.906 |
|
Bank Guarantees |
141.615 |
111.489 |
|
|
28.785 |
23.263 |
AUDITED FINACNCIAL
RESULTS FOR THE YEAR ENDED 30TH JUNE, 2011
(Rs. In Millions)
|
Particulars |
|
30.06.2011 Quarter Ended |
|
|
|
Unaudited |
|
Sales |
|
1094.400 |
|
Less : Excise Duty |
|
86.900 |
|
Net Sales |
|
1007.500 |
|
Other Operating Income |
|
2.800 |
|
Expenditure |
|
|
|
(Increase)/decrease in stock in trade and work-in
Progress |
|
(99.900) |
|
Consumption of raw materials |
|
724.200 |
|
Purchase of Traded Goods |
|
45.500 |
|
Employee Cost |
|
62.000 |
|
Discounts and Rebates |
|
121.600 |
|
Depreciation |
|
9.800 |
|
Other Expenditure |
|
94.000 |
|
Profit from Operations
before Other Income and Interest |
|
53.000 |
|
Other Income |
|
3.900 |
|
Profit Before Interest
|
|
57.000 |
|
Interest |
|
22.800 |
|
Profit before Tax |
|
34.200 |
|
Tax Expenses |
|
11.100 |
|
Net Profit for the period |
|
23.100 |
|
Paid- up
Equity Share Capital (Face value
of the share – Rs. 10) |
|
37.900 |
|
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. |
|
6.00 |
|
Public
shareholding |
|
|
|
Number of Shares |
|
1427092 |
|
Percentage of Shareholding |
|
37.70% |
|
Promoters and
promoter group shareholding |
|
|
|
a) Encumbered
|
|
|
|
Number of
Shares |
|
Nil |
|
Percentage of
Shares (as a % of
the total shareholding of promoter and promoter
group) |
|
Nil |
|
Percentage of
Shares (as a % of
the total share capital of the company) |
|
Nil |
|
b) Non –
encumbered |
|
|
|
Number of
Shares |
|
2358528 |
|
Percentage of
Shares (as a % of
the total shareholding of promoter and promoter
group) |
|
100.00% |
|
Percentage of
Shares (as a % of
the total share capital of the company) |
|
62.30% |
Notes :
1.
The
above results were reviewed by the Audit Committee on 8th August 2011 and approved
by the Board of Directors at their meeting held on 12th of August 2011
2.
The
Company operates mainly in one business segment i.e. Paints.
3.
At
the beginning of the quarter one complaint from investor was pending. During
the quarter 4 complaints from investors were received. Four complaints were
resolved and there was one complaint lying unresolved at the end of the
quarter.
4.
4
The limited review of above unaudited results as required under Clause 41 of
the listing agreement has been carried out by the statutory auditors.
AS PER WEBSITE DETAILS:
Business Description
Subject is an
India-based company. The Company is engaged in manufacturing of paints. It has
three manufacturing units and more than 54 branches and depots all across the
country. The Company has a product range in both architectural and industrial
sectors. It also has tinting systems under the brand name Color Space where the
Company offers more than 9000 shades across all product lines to its customers.
Its products include synthetic enamels, premium 100% acrylic exterior finish,
acrylic emulsion, exterior acrylic emulsion, premium acrylic distemper, epoxy
finishes, wood finishes, other interior wall finishes, cement paints, putty,
primers, aluminium paint, multi purpose varnishes, wood polishes, wood
preservative and board paint, dry colours, road marking paints and acrylic
washable distemper. The Husain collection is based on acrylic copolymer-based
emulsion. For the nine months ended 31 December 2010, subject's revenues
increased 8% to RS27.8M. Net income increased 10% to RS813K. Revenues reflect
an increase in income from operations and higher other income. Net income was
partially offset by an increase in purchase of traded d goods, a rise in
employee cost, an increase in consumption of raw materials, higher discount and
rebates cost and a rise in depreciation expense.
Mr. Girish Jhunjhnuwala
Non-Executive Chairman of the Board
He is a Bachelor
of Science Graduate from the
Mr. Pujit Aggarwal
Non-Executive Independent Director
He is the Managing
Director and CEO of Orbit Corporation Limited which is engaged in the
Construction and Redevelopment of Premium residential and commercial projects
in Mumbai. He is an alumnus of
Mr. Rajiv Garg
Non-Executive Independent Director
He has a Masters
degree in Management from
Mr. Ratan Jindal
Non-Executive Director
He is Vice
Chairman and Managing Director of Jindal Stainless Limited. Mr. Ratan Jindal is
on the Board of International Stainless Steel Forum (ISSF), a forum under the
auspices of International Iron and Steel Institute,
Mr. Aditya Vikram Lodha
Non-Executive Independent Director
He is presently
serving as the Director of Subject He a Chartered Accountant, is the Country
Managing Partner of Lodha and Company, one of the accounting and consulting
firms in
Mr. Sandeep Sarda
Chief Executive Officer, Executive Director
He is a Chartered
Accountant and Company Secretary, and is having more than 21 years of
experience in various companies in senior management positions.
Mr. Raghavachari Srinivasan
Non-Executive Independent Director
He holds a
Doctorate in Banking and Finance from the
PROFILE:
Subject is one
of the leading paints manufacturing companies of
The Husain Collection based on the best quality acrylic copolymer based
emulsion is the Company's premium acrylic emulsion.
The Company also has tinting systems under the brand name "Color Space" where the Company offers more than 9000
shades across all product lines to its customers.
PRESS RELEASE:
Business Wire
07 October 2011
The Indian paint
industry is over 100 years old. Its beginning can be traced back to the setting
up of a factory by Shalimar Paints in
The industry has
been doing well for the past couple of years. In spite of global economic
slowdown the industry is performing well. The Indian paint market has the
potential to grow over the decade at 15-20% per annum as the current per capita
consumption is much lower as compared to other developing economies. The per
capita consumption of paints in
Key Topics Covered:
- Industry Overview
- Indian Paint Industry
- Usage Segment
- Usage behavior trend
- Market Structure and Segmentation
- Market Share and Competition Situation
- Key Drivers
- Boom in Indian Housing Sector
- Strong Industrial growth
- Heavy Infrastructure Spending
- Increase in Manufacturing Activities
- Key Challenges / Barriers
- Economic slowdown
- Raw Material Price
- Competitive Market
- Currency Fluctuation Affects Raw
Material Prices
- Financial Analysis
- Country Advantage
- Regulatory Advantage and Legal
frameworks
- Recent Mergers and Acquisitions
- Industry SWOT
- Market forecast with Macroeconomic
assumptions
- Technological
- Annexure
- List of Industry Associations
- Indian Paint Association
- Indian Small Scale Paint Association
- Indian Paint and Coating Association
- List of Tables and Graphs
DNA (Daily News and Analysis)
28 January 2011
After 'urging' two
of the major corporate houses to withdraw their commercials which hurt the
sentiments of Hindus, the Hindu Janjagruti Samiti (HJS) has now upped its ante
against a paint company. The company, Shalimar Paints has brought out a new
series of paints called 'Hussain Emulsion Paints' carrying the paintings of MF
Hussain. Stating that this has hurt the religious sentiments of the Hindus, the
HJS said that the paintings of the person who had the audacity to portray our
motherland in a degrading manner, should not be promoted.
HJS co-ordinator
Shivaji Vatkar was shocked when he came to know about this series launched by
the company on January 10 this year. This lead him to immediately contact the
corporate office of Shalimar Paints at Andheri and asking them to immediately
withdraw the series. Failing to get any response from the company, he along
with some other members of HJS, personally visited the company office.
"We explained
to them the campaign that we have undertaken in a very peaceful manner. All we
have to say is that no person from
The Keralaya
Kshetra Paripalan Kendra Samiti, which is made up of 85 temples from all over
Meanwhile, the
company officials have promised the HJS that they will initiate steps in this
direction next month. However, Vatkar says that if this does not happen then
they will take the issue ahead and ask all Hindus to boycott the brand
completely. "The company will have to take us seriously and will
understand only when their sales drop," Vatkar concluded.
Writing's on the
wall
Shalimar Paints has
brought out a new series of paints called 'Hussain Emulsion Paints' carrying
the paintings of MF Hussain. Stating that this has hurt the religious
sentiments of the Hindus, the HJS said that the paintings of the person who had
the audacity to portray our motherland in a degrading manner, should not be
promoted
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.51.65 |
|
|
1 |
Rs.79.10 |
|
Euro |
1 |
Rs.65.32 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
55 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>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.