1. Summary Information
|
Reference
# |
135-101928-11-020(20120313762) |
Country |
|
|
Company Name |
Berger Paints
India Limited |
Principal Name 1 |
Kuldip Singh Dhingra |
|
Status |
Excellent |
Principal Name 2 |
Gurbachan Singh Dhingra
|
|
Our Reference # |
173383 |
Registration # |
21-4793 |
|
Street Address |
Berger House, |
||
|
Established Date |
17.12. 1923 |
SIC Code |
-- |
|
Telephone# |
91-33-22299724-28 |
Business Style 1 |
Manufacturing |
|
Fax # |
91-33-22499009/ 22499729 |
Business Style 2 |
Marketing |
|
Homepage |
Product Name 1 |
Synthetic Resins and Paints |
|
|
# of employees |
2446 (Approximately) |
Product Name 2 |
Varnishes |
|
Paid up capital |
Rs.692,145,000/- |
Product Name 3 |
Enamels |
|
Shareholders |
Shareholding of
Promoter and Promoter Group- 75.57%, Public Shareholding-24.43% |
Banking |
Bank of |
|
Public Limited Corp. |
Yes |
Business Period |
89 years |
|
IPO |
Yes |
International Ins. |
-- |
|
Public |
Yes |
Rating |
Aa
(77) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Associates Company
: |
-- |
U. K. Paints ( |
-- |
|
Note |
-- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
4,164,042,000 |
Current Liabilities |
3,642,855,000 |
|
Inventories |
4,039,186,000 |
Long-term Liabilities |
785,637,000 |
|
Fixed Assets |
2,041,602,000 |
Other Liabilities |
530,053,000 |
|
Deferred Assets |
0,000,000 |
Total Liabilities |
4,958,545,000 |
|
Invest& other Assets |
1,943,853,000 |
Retained Earnings |
6,529,184,000 |
|
|
|
Net Worth |
7,230,138,000 |
|
Total Assets |
12,188,683,000 |
Total Liab. & Equity |
12,188,683,000 |
|
Total Assets (Previous Year) |
9,774,016,000 |
|
|
|
P/L Statement as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Sales |
20,962,243,000 |
Net Profit |
1,483,079,000 |
|
Sales(Previous yr) |
16,841,669,000 |
Net Profit(Prev.yr) |
1,201,378,000 |
MIRA
INFORM REPORT
|
Report Date : |
22.03.2012 |
IDENTIFICATION DETAILS
|
Name : |
BERGER PAINTS INDIA LIMITED |
|
|
|
|
Registered
Office : |
Berger House, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
17.12. 1923 |
|
|
|
|
Com. Reg. No.: |
21-4793 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.692.145 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L51434WB1923PLC004793 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CALB08557D |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCB0976E |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturing and Marketing of Synthetic Resins and Paints, Varnishes, Enamels, etc. |
|
|
|
|
No. of Employees
: |
2446 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (77) |
|
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 29000000 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
|
|
|
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered/ Head Office / Factory : |
Berger House, |
|
Tel. No.: |
91-33-22299724-28/ 22296005/ 22296006/ 22296016/ 22003546–48/ 249 9754 |
|
Fax No.: |
91-33-22499009/ 22499729/ 22003549 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Plant 1 : |
14 and |
|
Tel. No.: |
91-33-2668 4706 (4 lines) |
|
Fax No.: |
91-33-2668 4709 |
|
|
|
|
Plant 2 : |
RS No. 53-56 Pandasozhanallur, Village - Nettapakkam Commune,
|
|
Tel. No.: |
91-431-2699574/ 143 |
|
Fax No.: |
91-431-2699171 |
|
|
|
|
Plant 3 : |
316-317, Kundaim Industrial Estate, Kundaim, North |
|
Tel. No.: |
91-832-2395610/ 6407 |
|
Fax No.: |
91-832-2395663 |
|
|
|
|
Plant 4: |
38A, Industrial Area, |
|
Tel. No.: |
91-5735-22384/249 |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. Kuldip Singh Dhingra |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Gurbachan Singh Dhingra |
|
Designation : |
Vice Chairman |
|
|
|
|
Name : |
Mr. Subir Bose |
|
Designation : |
Managing Director |
|
Experience : |
B. Tech, PGDBA |
|
|
|
|
Name : |
Mr. Anil Bhalla |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Gerald Kenneth Adams |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Gurcharan Das |
|
Designation : |
Additional Director |
|
|
|
|
Name : |
Mr. Kamal Ranjan Das |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Naresh Gujral |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Pulak Chandan Prasad |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Abhijit Roy |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Srijit Dasgupta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mrs. Rishma Kaur |
|
Designation : |
Alternate Director to Mr. Kuldip Singh Dhingra |
|
|
|
|
Name : |
Mr. Kanwardip Singh Dhingra |
|
Designation : |
Alternate Director to Mr. Gurbachan Singh Dhingra |
KEY EXECUTIVES
|
Name : |
Mr. Aniruddha Sen |
|
Designation : |
Senior Vice
President and Company Secretary |
|
|
|
|
COMMITTEES : |
|
|
Audit Committee : |
· Anil Bhalla (chairman) · Kamal Ranjan Das ·
G · Gerald Kenneth Adams\ · Aniruddha Sen (Secretary) |
|
|
|
|
Share Transfer Committee: |
· Subir Bose (Chairman) · Kamal Ranjan Das · Aniruddha Sen (Secretary) |
|
|
|
|
Investors Grievances Committee : |
· Kamal Ranjan Das (Chairman) · Subir Bose · Anil Bhalla · Aniruddha Sen (Secretary) |
|
|
|
|
Compensation Committee : |
· Anil Bhalla (Chairman) · Kamal Ranjan Das · Kuldip Singh Dhingra · Aniruddha Sen (Secretary) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 31.12.2011)
|
Names of Category |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
18,643,680 |
5.39 |
|
|
192,711,438 |
55.67 |
|
|
211,355,118 |
61.06 |
|
|
|
|
|
|
|
|
|
|
50,234,565 |
14.51 |
|
|
50,234,565 |
14.51 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
261,589,683 |
75.57 |
|
|
|
|
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
1,711,430 |
0.49 |
|
|
44,574 |
0.01 |
|
|
12,097,732 |
3.50 |
|
|
28,606,871 |
8.26 |
|
|
42,460,607 |
12.27 |
|
|
|
|
|
|
|
|
|
|
6,145,195 |
1.78 |
|
|
|
|
|
|
|
|
|
|
33,729,264 |
9.74 |
|
|
1,342,819 |
0.39 |
|
|
|
|
|
|
874,396 |
0.25 |
|
|
706,357 |
0.20 |
|
|
77,871 |
0.02 |
|
|
89,168 |
0.03 |
|
|
1,000 |
- |
|
|
42,091,674 |
12.16 |
|
|
|
|
|
Total Public shareholding
(B) |
84,552,281 |
24.43 |
|
|
|
|
|
Total (A)+(B) |
346,141,964 |
100.00 |
|
|
|
|
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
|
|
|
Total (A)+(B)+(C) |
346,141,964 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of Synthetic Resins and Paints Varnishes Enamels etc. |
||||||||
|
|
|
||||||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
|
|
|
|
|
Synthetic Resin |
MT |
33.151 |
25,516 |
|
|
|
|
|
|
Paints, Varnishes, Enamels etc. |
|
|
|
|
-
Liquid |
KL |
251742 |
140,165 |
|
-
Non-Liquid |
MT |
24,204 |
GENERAL INFORMATION
|
No. of Employees : |
2446 (Approximately) |
||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
· Standard Chartered Bank 4 Netaji Subhas Road ·
Bank of ·
Central Bank of 33 Netaji Subhas Road ·
The Royal Bank of · Corporation Bank · HDFC Bank Limited ·
The Hongkong and Shanghai Banking Corporation
Limited Kolkata West Bengal ·
ICICI Bank Limited ·
State Bank of · Axis Bank Limited · ING Vysya Bank Limited · DBS Bank limited |
||||||||||||||||||||||||||||||||||||||||||
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|
|
||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
||||||||||||||||||||||||||||||||||||||||||
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|
|
||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Lovelock and Lewes Chartered Accountants |
|
|
|
|
Associates Company
: |
U. K. Paints ( |
|
|
|
|
Joint Ventures : |
· Berger Becker Coatings Private Limited · BNB Coatings India Limited |
|
|
|
|
Wholly Owned
Subsidiary Company : |
·
Berger Jenson and Nicholson ( · Beepee Coatings Private Limited ·
Berger Paints ( · Berger Paints Overseas Limited · Lusako Trading Limited ·
Bolix · Build - Trade Sp. z.o.o. |
|
|
|
|
Limited
Directors have significant
influence : |
· U. K. Paints (Overseas) Limited |
CAPITAL STRUCTURE
(AS ON 02.08.2011)
Authorised Capital: Rs.750.000 Millions
Issued Capital: Rs.692.307 Millions
(AS ON 31.03.2011)
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 :
|
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 |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
692.145 |
692.145 |
637.745 |
|
|
2] Share Application Money |
0.000 |
0.000 |
99.000 |
|
|
3] Employees Stock Options |
8.809 |
0.000 |
0.000 |
|
|
4] Reserves & Surplus |
6529.184 |
5570.134 |
3514.640 |
|
|
5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
7230.138 |
6262.279 |
4251.385 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
785.314 |
244.130 |
780.017 |
|
|
2] Unsecured Loans |
0.323 |
0.488 |
0.565 |
|
|
TOTAL BORROWING |
785.637 |
244.618 |
780.582 |
|
|
DEFERRED TAX LIABILITIES |
89.990 |
90.317 |
72.537 |
|
|
|
|
|
|
|
|
TOTAL |
8105.765 |
6597.214 |
5104.504 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2041.602 |
1855.920 |
1623.036 |
|
|
Capital work-in-progress |
767.927 |
315.968 |
188.228 |
|
|
|
|
|
|
|
|
INVESTMENT |
1175.926 |
1701.990 |
295.230 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
4039.186
|
2993.270
|
2663.311
|
|
|
Sundry Debtors |
2402.882
|
2047.298
|
1803.799
|
|
|
Cash & Bank Balances |
1229.233
|
375.641
|
318.695
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
531.927
|
483.929
|
597.286
|
|
Total
Current Assets |
8203.228
|
5900.138
|
5383.091 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
2431.325
|
1950.025
|
1184.169 |
|
|
Other Current Liabilities |
1211.530
|
700.925
|
923.482
|
|
|
Provisions |
440.063
|
525.852
|
277.430
|
|
Total
Current Liabilities |
4082.918
|
3176.802
|
2385.081 |
|
|
Net Current Assets |
4120.310
|
2723.336
|
2998.010 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
8105.765 |
6597.214 |
5104.504 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
20962.243 |
16841.669 |
15083.357 |
|
|
|
Other Income |
404.691 |
227.312 |
228.535 |
|
|
|
TOTAL (A) |
21366.934 |
17068.981 |
15311.892 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials Consumed |
13388.785 |
10774.747 |
10069.239 |
|
|
|
Expenses |
5445.445 |
4305.124 |
3741.494 |
|
|
|
TOTAL (B) |
18834.230 |
15079.871 |
13810.733 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2532.704 |
198.911 |
1501.159 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
121.784 |
31.094 |
123.887 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2410.920 |
1958.016 |
1377.172 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
299.772 |
264.070 |
203.983 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2111.148 |
1693.946 |
1173.289 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
628.069 |
492.568 |
285.735 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1483.079 |
1201.378 |
887.554 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2104.460 |
1467.131 |
892.171 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
148.308 |
120.138 |
88.755 |
|
|
|
Final Dividend |
449.894 |
380.680 |
191.324 |
|
|
|
Tax on Distributed Profits |
73.652 |
63.231 |
32.515 |
|
|
BALANCE CARRIED
TO THE B/S |
2915.685 |
2104.460 |
1467.131 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
7.595 |
1.481 |
1.258 |
|
|
|
Other Earnings |
1.383 |
3.204 |
2.696 |
|
|
TOTAL EARNINGS |
8.978 |
4.685 |
3.954 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1782.811 |
1185.517 |
1038.377 |
|
|
|
Stores & Spares |
2.100 |
1.739 |
7.656 |
|
|
|
Capital Goods |
13.348 |
8.038 |
5.529 |
|
|
TOTAL IMPORTS |
1798.259 |
1195.294 |
1051.562 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
4.29 |
3.65 |
2.78 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
6414.400 |
6326.700 |
7010.400 |
|
Total Expenditure |
5811.400 |
5665.800 |
6325.600 |
|
PBIDT (Excl OI) |
603.000 |
660.900 |
684.800 |
|
Other Income |
87.000 |
84.300 |
88.800 |
|
Operating Profit |
690.000 |
745.200 |
773.600 |
|
Interest |
30.500 |
53.300 |
50.700 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
659.500 |
691.900 |
722.900 |
|
Depreciation |
84.200 |
92.500 |
98.800 |
|
Profit Before Tax |
575.300 |
599.400 |
624.100 |
|
Tax |
168.100 |
169.300 |
174.900 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
407.200 |
430.100 |
449.200 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
407.200 |
430.100 |
449.200 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
6.94
|
7.38
|
5.80 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.07
|
10.06
|
7.78 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
20.61
|
21.84
|
16.75 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.29
|
0.27
|
0.28 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.67
|
0.55
|
0.74 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.01
|
1.86
|
2.26 |
LOCAL AGENCY FURTHER INFORMATION
FINANCIAL
PERFORMANCE
During the
financial year ended 31st March, 2011, the Company achieved net consolidated
sales of Rs.23,281 million as against Rs.18,913 million in the previous year registering
a growth of 23%. The profit before depreciation, interest and exceptional items
was Rs.2,800 million as against Rs.2,250 million in the previous year,
recording an improvement of 24%. The profit before tax was Rs.2,161 million
(2009 - 10: Rs.1,720 million) and the profit after tax was Rs.1,501 million
(2009 - 10: Rs.1,204 million), representing increases of 26% and 25%
respectively.
MANAGEMENT
DISCUSSION AND ANALYSIS
PAINT INDUSTRY
STRUCTURE AND DEVELOPMENT
The Indian paint
industry witnessed positive growth in 2010-11, bolstered by the high GDP growth
rate of 8.6%. The paint market is dominated by decorative paints, which
accounts for nearly 70% of the total demand. The balance 30% belongs to
industrial paints - comprising automotive and industrial, protective, powder,
coil and marine coatings.
The decorative
paints market is throwing up opportunities for premium products which are
technically superior. Higher purchasing power, backed by higher income levels,
increased urbanization, rising construction activity in the housing segment and
easy availability of housing loans are boosting growth in this segment. This is
helped by the spread of audio-visual media, internet and communication
facilities. Better living conditions and aesthetics now fetch a definite value.
Considering the low levels of per capita consumption of paints per annum (0.5
kg in India compared to 6.4 kgs in China and 15 kgs in the USA compared to a
global average of 10-13 kgs), your Company feels that there is still much potential
in this sector.
Growing awareness
among retail consumers with respect to brand and attendant quality is
attracting them towards the organized sector. There is marked tilt towards
eco-friendly products which are not harmful to human beings as well as the
environment.
COMPANY’S
OPERATIONS
During the year,
the Company introduced Weathercoat Allguard - premium plus exterior emulsion.
It is the first Exterior Coating in
Another important
addition to the Company’s product portfolio was WeatherCoat Kool ‘n’ Seal. As
the name suggests, it delivers a 2 in 1 advantage of sealing terrace cracks and
also cooling the interiors by reflecting heat. It keeps the interiors cool vis-ŕ-vis
the ambient temperature. Also introduced were Water Based Wood Coatings which
do not emanate offensive smell.
As a continuation
of Corporate “Green Policy” (Green Horizon), the Company offers Breathe Easy Emulsion
(for interior walls) and Breathe Easy Enamel (for doors and windows) under the
brand umbrella - “Breathe Easy”. This has low volatile organic chemicals (VOC),
no unpleasant odour, reduced carbon and ammonia emissions. Breathe Easy is the
first green paint in
As part of Green
Horizon, the Company ensures that none of its decorative formulations carries
any unhealthy dosage of harmful chemicals like lead and mercury.
In the Protective
Coatings Business, the Company launched three new products during the year.
Some of these products are odourless and have unique corrosion and heat
resistance properties. Your Company continues to be the leader in this field
and supplies to all sectors of national importance such as infrastructure,
power, oil and gas.
The automotive and
general industrial businesses also performed well in view of recovery in key
market segments. New products were developed for two wheelers, their plastic
components and exhaust pipes.
The Company’s
factories performed well and produced as per market requirements. It has been
reported in the previous year’s Directors’ Report that the Company’s Puducherry
(formerly
FOCUS AND OUTLOOK
FOR 2011-12
The financial year
2011-12 commenced with high inflation exacerbated by rising commodity prices
and soaring prices of crude. There have been obvious measures such as increases
in lending rates. Despite this, the paint industry is bullish about repeating
the growth momentum of 2010-11 in the financial year 2011-12 as well. The
industrial sector including construction, automobile and petroleum products
segments are expected to post positive growth in 2011-12. The rising level of
consumption alongwith investments is bound to push forward industrial
production thereby creating a positive impact on the paints sector. The Company
shall take suitable steps to seize every opportunity to further consolidate its
position in the paints sector in the forthcoming years.
The focus of the
Company for the year 2011-12 is on developing the premium exterior and interior
emulsion category which has grown significantly in the last few years and
making technological advances to offer better products with varied uses in the
industrial and protective coatings sectors. In order to generate demand, the
Company will continue to concentrate on improving the Company’s share of
project business. There is enough scope in the country to expand distribution
networks across all markets both in terms of width and depth. Considering the
significance of improving service to dealers, state-of-the-art systems related
measures have been initiated, which will enhance the Company's distribution and
operational efficiencies.
PROJECTS
1) The capacity of
the Hindupur plant to come up in Andhra Pradesh, in the region bordering the
States of Karnataka and Andhra Pradesh, has been revised to 320,000 KL /MT per
annum for Water Base paints and 100,000 KL/ MT per annum for Emulsions. This
will be implemented in phases. The entire plant will be automated. The approval
of the Ministry of Environment and Forests, Government of India, is expected
soon. Meantime, preparatory engineering tasks have been completed.
2) The resin plant
at
3) Expansion of capacity
of Water Base paint plant at
4) The Rishra
Water Base capacity is also being expanded from 18,000 KL / MT per annum to
78,000 KL / MT per annum and, likewise, the first phase is expected to be
commissioned in the third quarter of 2011-12.
5) The Jammu
Powder Coating Plant capacity enhancement by 1,000 MT per annum has been
completed.
6) The Company has
planned to set up manufacturing facility for Auto GI - 18,000 KL per annum,
Protective Coatings - 12,000 KL per annum and Solvent Base Decorative Paints -
24,000 KL per annum at Jejuri near Pune. The Plant layout has been finalized.
The Plant is likely to be commissioned in 2013.
SUBSIDIARIES AND
JOINT VENTURES
There were severe
winter conditions in the first quarter of 2010 in
Results of
BJN-Nepal, a wholly owned subsidiary of the Company, showed substantial
improvement. During the year, BJN-Nepal achieved a turnover of Rs.450.6 million
and Profit Before Tax of Rs.74.6 million.
Beepee Coatings
Private Limited, a wholly owned subsidiary of the Company, with its entire
manufacturing facilities dedicated to processing the Company’s products,
achieved an increase in the processing income from Rs.101.6 million to Rs.110
million. The erection of the emulsion plant under the aegis of Beepee Coatings
has been completed and will start operations in the current year.
Berger Paints
(Cyprus) Limited, Cyprus, is a special purpose vehicle for the purpose of
making investments in the Company’s interests abroad and so is Lusako Trading
Limited.
Berger Paints
Overseas Limited in
Berger Becker
Coatings Limited, the Company’s joint venture with Becker Industrifarg,
BNB Coatings
Limited, the Company’s joint venture with Nippon Bee Chemicals Company Limited,
Japan substantially improved its business with a 46% increase in revenue and
posted a net profit of Rs.12 million in its third year of operations.
Pursuant to an
agreement with Punjab National Bank and Pnb Principal Insurance Broking Private
Limited on 23rd June, 2010, the Company sold its entire holding of 125,000
equity shares of Rs.100 each, in Pnb Principal Insurance Broking Private
Limited, originally purchased at face value, at a consideration of Rs.50.138
Millions on 12th January, 2011.
Fixed Assets
Tangible
Assets:
·
Land :
Freehold
Leasehold
·
Buildings :
Freehold
Leasehold
·
Plant and Machinery
·
Furniture and Fittings
·
Equipment
·
Motor Cars and Other Vehicles
Intangible
Assets:
- Computer
Software
UNAUDITED
FINANCIAL RESULTS FOR THREE MONTHS ENDED 31st DECEMBER 2011
(Rs. In Millions)
|
|
Particulars |
UNAUDITED |
||
|
|
Three Months Ended
31.12.11 |
Previous Three
Months Ended 30.09.11 |
Nine Months
Ended 31.12.11 |
|
|
|
|
|
|
|
|
1. |
(a) Net Sales/Income from Operations |
7001.000 |
6319.900 |
19726.100 |
|
|
(b) Other Operating Income |
9.400 |
6.800 |
25.400 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
a. (Increase) / Decrease in stock in trade and work-in-progress |
51.500 |
(384.000) |
(743.000) |
|
|
b. Consumption of raw materials |
4162.500 |
3942.800 |
12411.500 |
|
|
c. Purchase of traded goods |
356.700 |
455.500 |
1122.100 |
|
|
d. Employee cost |
307.800 |
314.100 |
930.500 |
|
|
e. Depreciation |
98.800 |
92.500 |
275.500 |
|
|
f. Other expenditure |
1447.100 |
1337.400 |
4081.700 |
|
|
Total |
6424.400 |
5758.300 |
18078.300 |
|
|
|
|
|
|
|
3. |
Profit from Operations before Other Income, Interest and Exceptional
Items (1-2) |
586.000 |
568.400 |
1673.200 |
|
4. |
Other Income |
88.800 |
84.300 |
260.100 |
|
5. |
Profit before Interest and Exceptional Items (3+4) |
674.800 |
652.700 |
1933.300 |
|
6. |
Interest |
50.700 |
53.300 |
134.500 |
|
7. |
Profit after Interest but before Exceptional Items (5-6) |
624.100 |
599.400 |
1798.800 |
|
8. |
Exceptional items |
- |
- |
- |
|
9. |
Profit (+)/ Loss (-) from Ordinary Activities before tax (7+8) |
624.100 |
599.400 |
1798.800 |
|
10. |
Tax expense |
174.900 |
169.300 |
512.300 |
|
11. |
Net Profit (+)/ Loss (-) from Ordinary Activities after tax (9-10) |
449.200 |
430.100 |
1286.500 |
|
12. |
Extraordinary Item (net of tax expense) |
- |
- |
- |
|
13. |
Net Profit (+)/ Loss (-) for the period
(11-12) |
449.200 |
430.100 |
1286.500 |
|
14. |
Paid-up equity share capital |
692.300 |
692.300 |
692.300 |
|
15. |
Reserves excluding Revaluation Reserves as per Balance Sheet |
|
|
|
|
|
|
|
|
|
|
16. |
Earnings Per
Share (EPS) |
|
|
|
|
|
a) Basic EPS (Rs.) |
1.30 * |
1.24 * |
3.72 |
|
|
b) Diluted EPS (Rs.) |
1.30 * |
1.24 * |
3.71 |
|
|
|
|
|
|
|
17. |
Public
shareholding |
|
|
|
|
|
Number of shares |
84552281 |
84542281 |
84552281 |
|
|
Percentage of shareholding |
24.43 |
24.42 |
24.43 |
|
|
|
|
|
|
|
18. |
Promoters and
Promoter Group Shareholding |
|
|
|
|
|
a) Pledged / Encumbered
|
|
|
|
|
|
- Number of shares |
Nil |
Nil |
Nil |
|
|
-Percentage of shares (as a % of the total shareholding of promoter
and promoter group) |
Nil |
Nil |
Nil |
|
|
-Percentage of shares (as a % of the total share capital of the company) |
Nil |
Nil |
Nil |
|
|
|
|
|
|
|
|
b)
Non-encumbered |
|
|
|
|
|
- Number of shares |
261589683 |
261589683 |
261589683 |
|
|
-Percentage of shares (as a % of the total shareholding of promoter
and promoter group) |
100.00 |
100.00 |
100.00 |
|
|
-Percentage of shares (as a % of the total share capital of the
company) |
75.57 |
75.58 |
75.57 |
NOTES:
· The Company has only one business segment - Paints.
· There were no pending investors' complaints at the beginning of the quarter. No complaint was received during the quarter. There were no pending investors' complaints at the end of the quarter.
·
During the period, the Company has allotted
10,000 Equity shares of Rs. 2/- each fully paid up to its eligible employees on
their exercise of the options granted to them earlier, pursuant to Employees
Stock Option Plan.
· The proceeds of the preferential issues made by the Company in the year 2009-10 are being used in its growth related activities.
· Figures for the previous periods have been regrouped, wherever necessary.
·
The above results, as reviewed by the Audit
Committee, were approved and taken on record by the Board of Directors at its meeting
held on 31st January, 2012. These results have been subjected to a 'Limited
Review' by the statutory auditors of the Company.
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.50.25 |
|
|
1 |
Rs.79.76 |
|
Euro |
1 |
Rs.66.52 |
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.