MIRA
INFORM REPORT
|
Report Date : |
02.05.2012 |
IDENTIFICATION DETAILS
|
Name : |
KANSAI NEROLAC PAINTS LIMITED (w.e.f.11.07.2006) |
|
|
|
|
Formerly Known
As : |
GOODLASS NEROLAC
PAINTS LIMITED |
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Registered
Office : |
Nerolac House, Ganpatrao
Kadam Marg, Lower Parel, Mumbai – 400 013, |
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Country : |
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|
|
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Financials (as
on) : |
31.03.2011 |
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|
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Date of
Incorporation : |
02.09.1920 |
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Com. Reg. No.: |
11-000825 |
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|
|
Capital Investment
/ Paid-up Capital : |
Rs.538.920
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24202MH1920PLC000825 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMG00234D |
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|
|
Legal Form : |
A Public Limited Liability Company. The company’s shares are listed on the
Stock Exchanges. |
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Line of Business
: |
Manufacturing and
Marketing of Paints, Varnishes and Enamels, Oils and Synthetic Resins. |
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|
|
|
No. of Employees
: |
2220 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 36000000 |
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|
|
|
Status : |
Good |
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|
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having fine track.
Financial position 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 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) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office : |
Nerolac House,
Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400013, |
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Tel. No.: |
91-22-2493 4001/
24992500/ 24992585 |
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Fax No.: |
91-22-24919439 |
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E-Mail : |
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Website : |
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Factory 1 : |
B 1 , B2, Jainpur Industrial Estate, |
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Factory 2 : |
F/2, MIDC, Lote Parshuram, Taluka Khed,
District Ratnagiri, |
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Factory 3 : |
Bibi Talav Vatva, |
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Factory 4 : |
142, |
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Factory 5 : |
36, Sector-7, HSIDC IGS, Bawal, District
Rewari, |
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Sales Depot : |
B-19, |
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Branch Office : |
Located at :
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DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Jamshed Jiji
Irani |
|
Designation : |
Chairman |
|
Address : |
221, A-Wing, NCPA
Apartment, Nariman Point, Mumbai – 400021, |
|
Date of Birth
: |
02.06.1936 |
|
Date of
Appointment : |
29.10.2002 |
|
|
|
|
Name : |
Mr. Devendra
Motilal Kothari |
|
Designation : |
Vice Chairman |
|
Address : |
8-4, |
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Date of Birth
: |
30.03.1930 |
|
Date of
Appointment : |
01.04.1973 |
|
|
|
|
Name : |
Mr. Harishchandra
M. Bharuka |
|
Designation : |
Managing Director |
|
Address : |
A-II, Twin Towers
Premises CHS Limited, Off V S Marg, Mumbai – 400025, |
|
Date of Birth
: |
22.06.1960 |
|
Date of
Appointment : |
01.04.1999 |
|
|
|
|
Name : |
Mr. Susim M.
Datta |
|
Designation : |
Director |
|
Address : |
104, |
|
Date of Birth
: |
01.07.1936 |
|
Date of
Appointment : |
17.05.2000 |
|
|
|
|
Name : |
Mr. Hiroshi
Ishino |
|
Designation : |
Director |
|
Address : |
3-14-15, MI Nani
Meguro-HU, |
|
Date of Birth
: |
10.04.1951 |
|
Date of
Appointment : |
19.01.2005 |
|
|
|
|
Name : |
Mr. Pradip P.
Shah |
|
Designation : |
Director |
|
Address : |
72-A, Embassy
Apartment, 7th floor, |
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Date of Birth
: |
07.01.1953 |
|
Date of
Appointment : |
30.01.2007 |
|
|
|
|
Name : |
Mr. Noel Naval
Tata |
|
Designation : |
Director |
|
Address : |
Windmere – 55,
Cuffe Parade, Mumbai – 400005, |
|
Date of Birth
: |
12.11.1956 |
|
Date of
Appointment : |
27.10.2007 |
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|
|
|
Name : |
Mr. Pravin D.
Chaudhari |
|
Designation : |
Whole Time
Director |
|
Address : |
12, Juhu
Goldmist, JUPD Scheme, Mumbai – 400049, |
|
Date of Birth : |
17.05.1968 |
|
Date of
Appointment : |
30.04.2008 |
|
|
|
|
Name : |
Mr. Yoshikazu
Takahashi |
|
Designation : |
Director |
|
Address : |
7-Chome 6-1-4,
Okamoto Higashinada – KU, |
|
Date of Birth
: |
11.01.1953 |
|
Date of Appointment
: |
26.03.2010 |
|
|
|
|
Name : |
Mr. Hitoshi
Nishibayashi |
|
Designation : |
Director |
|
Address : |
7-Chome 6-1-4,
Okamoto Higashinada – KU, |
|
Date of Birth
: |
31.05.1963 |
|
Date of
Appointment : |
30.07.2010 |
KEY EXECUTIVES
|
Name : |
Mr. Gomatam Thirumalai Govindarajan |
|
Designation : |
Company Secretary |
|
Address : |
F-203-Lloyds
Estate, |
|
Date of Birth
: |
16.11.1964 |
|
Date of
Appointment : |
01.10.1993 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2012
|
Category of
Shareholder |
Total No. of
Shares |
% of total No.
of Shares |
|
|
|
|
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
|
|
|
|
37,329,760 |
69.27 |
|
|
37,329,760 |
69.27 |
|
Total shareholding of Promoter and Promoter Group (A) |
37,329,760 |
69.27 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
197,741 |
0.37 |
|
|
950 |
- |
|
|
2,311,890 |
4.29 |
|
|
3,540,761 |
6.57 |
|
|
6,051,342 |
11.23 |
|
|
|
|
|
|
5,880,088 |
10.91 |
|
|
|
|
|
|
3,732,901 |
6.93 |
|
|
816,025 |
1.51 |
|
|
81,856 |
0.15 |
|
|
75,906 |
0.14 |
|
|
5,950 |
0.01 |
|
|
10,510,870 |
19.50 |
|
Total Public shareholding (B) |
16,562,212 |
30.73 |
|
Total (A)+(B) |
53,891,972 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
53,891,972 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and
Marketing of Paints, Varnishes and Enamels, Oils and Synthetic Resins. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
Paints, Varnishes
and Enamels and Powder Coatings |
MT |
220800 |
190023 |
|
Synthetic Resins |
MT |
86500 |
44822 |
|
Pretreatment
Chemicals |
MT |
2400* |
-- |
Note:
* used for processing goods on behalf of Nipa Chemicals Limited, an erstwhile associate company.
(a) Installed capacity has been certified by the Works Manager and accepted by the Auditors without verification, being a technical matter.
(b) Production does not include goods processed outside. Sales, opening stock and closing stock include goods processed and purchased from outside. The closing stock is after adjustments for obsolescence and shortages. Closing stock figures, if derived from opening stock plus production / purchases and less sales would therefore be different.
GENERAL INFORMATION
|
No. of Employees : |
2220
(Approximately) |
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Bankers : |
·
Union Bank of ·
Standard Chartered Bank ·
Bank of Tokyo-Mitsubishi UFJ, Limited ·
HDFC Bank Limited ·
BNP Paribas |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
B S R and Company Chartered Accountant |
|
Address : |
Mumbai, |
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Solicitors: |
|
|
Name : |
Kanga and Company |
|
Address : |
Mumbai, |
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|
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Holding Company
: |
Kansai Paint Company Limited, |
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|
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|
Fellow Subsidiary: |
· Kansai Paint Philippines Inc ·
Kansai Resin ( ·
Kansai Coatings ·
Sime Kansai Paints SDN. BHD. |
|
|
|
|
Associate – company
in which the Company has substantial interest (i.e. more than 20% in voting
power) (Upto 14th January, 2011) |
Nipa Chemicals Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
60000000 |
Equity Shares |
Rs.10/- each |
Rs.600.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
53891972 |
Equity Shares |
Rs.10/- Each |
Rs.538.920
Millions |
Note:
Of the above:
a. 14,81,820 Equity shares of Rs. 10 each are allotted as fully paid-up pursuant to contracts / arrangements for consideration other than cash.
b. 14,38,320 Equity shares of Rs. 10 each fully paid-up are allotted to the shareholders of the erstwhile Polycoat Powders Limited pursuant to the scheme of amalgamation sanctioned by the High Court of judicature at Bombay, for consideration other than cash; and
c. 4,25,65,302 (2009-2010 1,56,19,316) Equity shares of Rs. 10 each are allotted as fully paid-up by way of bonus shares by capitalization of Share premium, Profits and Reserves.
3,73,29,760 (2009-2010 1,86,64,880) Equity shares are held
by the holding company Kansai Paints Company Limited,
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 |
538.920 |
269.460 |
269.460 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
8622.750 |
7458.710 |
6275.025 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
9161.670 |
7728.170 |
6544.485 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
81.141 |
335.328 |
160.829 |
|
|
2] Unsecured Loans |
743.699 |
764.519 |
775.433 |
|
|
TOTAL BORROWING |
824.840 |
1099.847 |
936.262 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
9986.510 |
8828.017 |
7480.747 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2782.073 |
2893.256 |
2374.354 |
|
|
Capital work-in-progress |
751.647 |
96.952 |
309.436 |
|
|
Advance for capital expenditure |
284.099 |
67.331 |
46.804 |
|
|
|
|
|
|
|
|
INVESTMENT |
3718.228 |
4015.372 |
2944.255 |
|
|
DEFERREX TAX ASSETS |
134.130 |
115.230 |
105.957 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3541.025
|
2474.444
|
1706.339
|
|
|
Sundry Debtors |
2602.599
|
2323.662
|
2095.729
|
|
|
Cash & Bank Balances |
396.906
|
410.825
|
761.639
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
502.315
|
410.930
|
417.070
|
|
Total
Current Assets |
7042.845
|
5619.861
|
4980.777 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
3512.502
|
2940.440
|
2300.112 |
|
|
Other Current Liabilities |
122.935
|
102.804
|
142.237
|
|
|
Provisions |
1091.075
|
936.741
|
838.487
|
|
Total
Current Liabilities |
4726.512
|
3979.985
|
3280.836 |
|
|
Net Current Assets |
2316.333
|
1639.876
|
1699.941
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
9986.510 |
8828.017 |
7480.747 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
21387.302 |
17063.836 |
13745.192 |
|
|
|
Other Income |
234.609 |
203.821 |
221.950 |
|
|
|
TOTAL (A) |
21621.911 |
17267.657 |
13967.142 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material / Products |
14002.453 |
10718.223 |
8995.828 |
|
|
|
Employees Remuneration |
916.420 |
750.489 |
733.030 |
|
|
|
Operating and Other Expenditure |
3563.404 |
2958.254 |
2441.964 |
|
|
|
Profit on |
(253.665) |
0.000 |
0.000 |
|
|
|
TOTAL (B) |
18228.612 |
14426.966 |
12170.822 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3393.299 |
2840.691 |
1796.320 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
8.428 |
11.999 |
18.380 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3384.871 |
2828.692 |
1777.940 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
493.548 |
442.598 |
376.050 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2891.323 |
2386.094 |
1401.890 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
831.478 |
731.089 |
416.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
2059.845 |
1655.005 |
985.890 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
3732.073 |
2714.388 |
2205.393 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
538.920 |
404.189 |
323.352 |
|
|
|
Tax on Proposed Dividend |
87.426 |
67.131 |
54.954 |
|
|
|
General Reserve |
205.985 |
166.000 |
98.589 |
|
|
BALANCE CARRIED
TO THE B/S |
4959.587 |
3732.073 |
2714.388 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
6.441 |
6.223 |
NA |
|
|
|
Recovery of Freight, Insurance and Other Charges on Exports |
0.295 |
0.312 |
NA |
|
|
TOTAL EARNINGS |
6.736 |
6.535 |
NA |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
3526.492 |
2712.547 |
1687.112 |
|
|
|
Stores & Spares |
19.432 |
7.573 |
30.800 |
|
|
|
Finished Goods |
206.176 |
100.326 |
41.725 |
|
|
|
Capital Goods |
13.090 |
7.578 |
18.365 |
|
|
TOTAL IMPORTS |
3765.190 |
2828.024 |
1778.002 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
38.22 |
30.71 |
36.59 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
6520.500 |
6160.500 |
6656.900 |
|
Total Expenditure |
5592.500 |
5245.900 |
5850.900 |
|
PBIDT (Excl OI) |
928.000 |
914.600 |
806.000 |
|
Other Income |
56.900 |
29.300 |
74.700 |
|
Operating Profit |
984.900 |
943.900 |
880.700 |
|
Interest |
2.500 |
2.000 |
2.000 |
|
PBDT |
982.400 |
941.900 |
878.700 |
|
Depreciation |
120.100 |
135.800 |
144.600 |
|
Profit Before Tax |
862.300 |
806.100 |
734.100 |
|
Tax |
250.000 |
235.000 |
207.300 |
|
Profit After Tax |
612.300 |
571.100 |
526.800 |
|
Net Profit |
612.300 |
571.100 |
526.800 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
9.53
|
9.58 |
7.06 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
13.52
|
13.98 |
10.20 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
29.43
|
28.03 |
19.06 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.32
|
0.31 |
0.21 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.61
|
0.66 |
0.64 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.49
|
1.41 |
1.52 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject, the Indian subsidiary of
Subsequently, by 1946, Goodlass Wall (
Technical Assistance Agreements of the company with renowned players in paint
industry at international level puts the company in a strong position to offer
products which meets stringent international specifications. It started in 1993
when the company tied-up with Kansai Paints of Japan (for manufacture of
sophisticated architectural Coatings) and Nihon Tokushu Torya Company Limited
also of
The company has strong presence in automotive paints as it controls 45% of the
organized Industrial paint segment. Its major clients include OEMs like Maruti
Udyog, Bajaj Auto, TELCO and Mahindra and Mahindra. It was a pioneer in
introducing electro-deposition (ED) technology for Maruti, capturing a sizeable
share of the automotive paint market. The company has two wholly owned
subsidiaries namely Saurashtra Paints and GNP (
It has the software package, computerized colour dispensing machine from Fluid
Management Holland, Gyroshaker of 10-Litre capacity touch screen monitor, 136
column palette-share display unit and a Kirloskar Champion UPS 1 KVA. The
system has an ability to supply over 1305 shades accurately, consistently and
instantly in several products covering a variety of application viz doors,
windows, walls, exteriors, gates, grills etc.
MANAGEMENT
DISCUSSION AND ANALYSIS
Subject is a subsidiary of
Subject has a pan-India presence and serves its customers through its 74
sales locations and 5 factories. The manufacturing operations extend across
For the Industrial Coatings, Subject has a series of products in the
Automotive, Powder and Liquids domain. A series of innovative product launches
and service capabilities like Just In Time (JIT) have been some of the key
enablers for sustaining the leadership. For the Decorative business, the
organization is known for its innovative products and services and has many
firsts to its credit like launch of low Volatile Organic Compound (VOC), low
odour and lead free (no added lead) paints.
The organization, through the course of the last decade had benchmarked
itself against the practices of several organizations and devised the
Subject has always propagated innovation, use of technology and value
engineering. It has continuously demonstrated leadership traits and challenged
the way business is done in the Decorative as well as Industrial segments.
Capacity enhancements, operational excellence, higher service delivery,
reduced inventory has been the agenda for Supply chain function. In order to
meet the industry requirements, capacity expansions took place at Jainpur and
Hosur Subject got statutory clearances for expanding the plant capabilities and
commissioning at Hosur. This will be helpful in catering to future customer
demands.
Huge investments in IT interventions are indicative of the
organization’s focus on exploiting the power of Information Technology as a
strategic differentiator. The initiatives undertaken will be the catalysts for
transformation in the way transactions are done, data is analyzed, decisions
are made and customer demands are fulfilled.
The organization has been awarded with several accolades in all functional
areas of Products, Services and Governance which indicate that Subject has been
appreciated by the entire value chain.
Industry Progress
In the year 2010-11, the Indian economy has seen good growth. Demand
across various key end user segments be it housing, automobiles, consumer
durables has been robust. The paint industry as a whole is expected to have
grown by 22% in 2010-11. During the year Subject has grown by 26%. Growth
across all segments has been encouraging.
Through the investments and implementation of various IT packages and
other strategic interventions, the organization has leveraged its brand,
product range, reach, delivery capabilities, infrastructural support and
operational controls to achieve the desired growth momentum.
As an outcome, Subject has been able to focus on the decorative and non
auto liquid business, while consolidating its leadership in the Automotive and
powder coatings business.
The year also saw high inflation which put cost pressures on the
Industry and the company. The company has through a series of internal measures
of operational efficiencies tried to minimize the impact. In the Decorative
business the company was able to pass on the cost increases to a certain
extent. However, in the Industrial business, passing on the cost impact
continues to be a challenge. This has had an impact on the bottom line growth
for the company.
As far as the market for paints segment for
Despite the long term positive growth prospects in the Indian Economy,
there have been signs of tightening interest rates, increasing inflation,
political uncertainties and rising commodity and oil prices. These along with
the instability in the policy making process, cost pressures and market
uncertainties have made the business environment very challenging for the year
and years ahead. While Subject has taken various measures to meet the challenges,
it maintains a cautious view about the near future both in terms of top-line
and bottom-line growth.
The industry size for paints is estimated at Rs. 240000.000 millions
wherein the organized sector accounts for 65% while the remaining is with the
unorganized sector comprising of around two thousand small scale paint units.
The decorative paints segment accounts for Rs. 180000.000 millions while
industrial accounts for Rs. 60000.000 millions of the total paint market.
Marketing Initiatives – Outlook
In Decorative, Subject has taken a lead in the Industry of positioning
paints as a means of contributing towards the well being of society. So in an
industry which has traditionally always positioned paints as being a medium of
joy and happiness, Subject has sought to position paints on the platform of
health & environment, personal and Societal. With this is in mind it has
launched a campaign of healthy home Paints.
To take this forward the company has chosen Mr. Shahrukh Khan to be the
face of the brand and has adopted the tagline ‘Kuchh Change Karein, Chalo Paint
Karein’.
Subject approach is visible by the series of strategic initiatives taken
through the launch of Environment friendly, low VOC in addition to the lead
free (no added lead) products launched earlier along with increased market
visibility through campaigns around this platform. The”Nerolac” jingle has been
brought back in a renewed avatar in the advertisement campaigns initiated this
year.
To reach the consumers directly, company is now connected to the
consumers through social networking media like Facebook and Twitter. This is a
good platform to connect with the end consumers directly and can be used as an
important tool for all kinds of communication.
As pioneers in creating awareness for healthy home Paints which are lead
free, low VOC and odourless, the Nerolac Impressions Eco Clean television
campaigns, aired on all leading channels, aim at creating healthy homes for the
consumers. This affirms the seriousness of the company towards ‘Painting a
greener tomorrow’.
Subject has a number of firsts to its credit and it has again been the
pioneer in setting up Customer Care Executives at all depots to propagate
customer focus and service levels. In addition, a call center service was
introduced at
For the consumers of today, it is important to make the process of
buying paint an involved experience wherein they can touch and feel the
products. These aspects have been catered by the opening of more Nerolac Colour
Stylers in select zones.
Considering the current trend of the customers being engaged while
buying paints, several promotional programs have been conducted to endorse the
Impression Style zone outlets. These shops provide an end to end solution,
beginning from helping the consumers to choose the right kind of paint and
finishes, to how the product will look in their homes. In order to increase the
footfalls in these outlets, a series of events involving the customers have
taken place.
Subject also participated at Acetech 2011, one of the largest
architecture, building and construction expositions in the country, wherein the
theme showcased was ‘safe and Green products.’
During the year, focus has been on new dealer openings, placement of
computerized color dispensing machines, reaching out to new sites, contractors
and establishing corporate tie ups. Many awareness campaigns through Excel
Total Heat Guard, ‘Impressions – Dikhao Apne Rang’, ‘Star Meets Star’,
engagement of dealers in display contest for Beauty and Suraksha, and
participation in Green Clubs have taken place.
Performance of Subject is commendable in the Auto, Powder Coatings and
Liquids business segments as well, and the potential for growth is high.
In the Automotive business the organization has extensively focused on
building and sustaining excellence in quality, relationships, delivery and
product upgrades. This has been beneficial in maintaining the aggressive growth
of existing lines and acquiring new ones. The company is also pursuing
approvals with European Auto Majors. The company is also re-focusing on the
Auto refinish business and a series of initiatives have been undertaken.
The company regularly conducts customer satisfaction surveys with its
automotive customers to understand standing with customers and using the
feedback as key input to undertaking structured initiatives. As a part of the
marketing initiatives, color presentations were made to various customers. The
industrial marketing team also participated in various industry meets.
During the year, Subject has maintained its technology leadership
through introduction of new products and technologies at Key Original Equipment
Manufacturers (OEMs). The year saw the introduction of high solid paints having
low VOC at a key OEM. Subject also introduced the next generation of Cathodic
Electro Deposition primer (CED) with high throw power.
Subject has also made significant in-roads in the Heat resistant Coating
Automotive business. The year also saw the introduction and commercialization
of Rapguard – transit protection films for vehicles by Subject for some of the
automotive customers. These films protect the paint film when cars are
transported.
In the Non auto business, Subject has invested in efforts aimed at
promoting the Nerolac brand for Non Automotive Liquid Coatings. The Non
Automotive liquid coatings are used in a variety of OEM / Consumer goods and
Engineering Goods industries as well as Infrastructure segments like Oil and
Gas, Power, metals amongst others. Subject participated in various Industry
forums as well had advertisements in trade journals aimed at Key end user
segment. This has helped create visibility for the Nerolac brand in the
targeted end user industry. The efforts will be continued in the year to come.
Subject has also strengthened its product offering in these segments and
has leveraged its strength in Automotive to offer solutions to the OEM segment.
New technology products have been offered in the Electrical segment. Similarly
Industry specific solutions have been offered for Infrastructure segments.
Subject has also been making in-roads in the huge maintenance market.
In Powder Coatings, Subject has built on its market leadership through
the successful commercialization (for the first time in
There is a huge potential of growth in the Non Auto business segment.
The division is geared to take on the segment and establish more customers with
its varied products.
During the course of the year, Subject has been awarded business of CED,
Top Coats and Pre treatment chemicals at new customers. This indicates that
Subject is valued as a full system supplier and the position is further
strengthened in the industrial sector.
Segment Wise Performance
The company has only one segment of activity, named “paints”, in
accordance with the definition of “Segment” as per the Accounting Standard 17
issued by the Institute of Chartered Accountants of India.
Information Technology
Subject has made huge investments in IT initiatives and that will serve
as the real enabler for cultural transformation. The existing set up has been
further enhanced by the implementation of many new technologies aimed at
simplifying business processes while maintaining controls and empowering
managers.
During the year, the business driven SAP initiative saw the completion
of the functional enhancements of the core ECC (ERP) platform along with the
Business Intelligence and Supply Chain Platforms.
Also, during the year the company has completed the implementation of
products like Business Objects, New Product Development, Workflows, Knowledge
Management, Document Management, Adobe forms, GRC (Governance, Risk and
Control), MII (Manufacturing Intelligence and Integration), along with Business
Communication Manager (BCM) and Customer Relationship Manager (CRM). The
company has also launched a new Supplier Portal for its suppliers. In addition
to streamline IT operations the company has also implemented TDMS (Test Data
Migration Server), Extended Solution Manager and Solution Manager.
The implemented projects have advantages attached to their
implementation. Besides operational improvements they would also help the
organization respond to the customer in a differentiated manner. In addition, a
number of system controls have been put in, which will strengthen the
governance mechanism within the organization. Document management system will
aid in moving towards a paper-less office. Workflows in combination with some
of the products will help in faster decision making and automation of certain
tasks. In addition a slew of exception based MIS using Business Intelligence
and Business Objects will aid in changing the way review is done in the
organization.
CRM will help in greater customer centricity. All this will also aid in
improving organizational productivity. The IT interface will change the way all
operations are carried out. Every business division has been impacted by the
interventions. The effective use of these interventions will essentially go a
long way in bringing about a change in the way the company functions.
Awards and Recognition
Subject has been awarded a series of awards and recognition in various
fields. The Awards given by the External Agencies are:
• BSC 5 Star Safety Audit: 5 Stars awarded to Lote and Jainpur plants
• Silver Certificate of Merit Award by Frost and Sullivan for Lote Plant
• Silver Certificate Merit Award by Frost and Sullivan for Jainpur Plant
• Golden Peacock Innovative Product/Service of the Year Award for
Nerolac Impressions Ecoclean
The Awards by Customers are:
• Nerolac Excel Total with heat guard technology as the ‘Product of the
year 2011’ in the paints category
• “Outstanding Company in Paints and Coatings sector for the year 2010
in EPC World Awards 2010”
Financials
Gross sales for the year aggregated to Rs. 24930.000 millions reflecting
a growth of 26.4% over the previous year. Sales net of excise duty grew by
25.3%.
Profit for the year was driven by robust growth in decorative and
industrial sales. Overall raw material inflation was very high. Increase in raw
material prices was driven by increase in crude oil prices.
Depreciation is higher due to full impact of the water based plant at
Hosur commissioned in the last quarter of 09-10. Current year's depreciation is
at Rs. 493.500 millions as compared to Rs. 442.600 millions of the previous
year.
Interest was lower at Rs. 8.400 millions as compared to Rs. 12.000
millions of the previous year due to effective cash management.
Other income was higher at Rs. 488.300 millions (09-10 Rs. 203.800
millions) due to profit on sale of investments. During the year company’s
investment in Nipa Chemicals Ltd. was sold to Nihon Parkerizing Company
Limited,
Profit Before Tax (PBT) is higher at Rs. 2891.300 millions as compared
to Rs. 2386.100 millions of the previous year reflecting a growth of 21.1%.
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER
ENDED 30TH JUNE 2011
(Rs.
In millions)
|
Sr. No. |
Particular |
Unaudited |
|
|
|
Quarter
Ended on 30.06.2011 |
|
1. |
Gross
Sales / Income |
7574.000 |
|
|
|
|
|
|
a. Net Sales / Income from Operations (Net of Excise and Discounts) |
6516.600 |
|
|
b. Other Operating Income |
3.900 |
|
|
Total
Income (a+b) |
6520.500 |
|
|
|
|
|
2. |
Expenditure |
|
|
|
a) (Increase) / Decrease in Stock in Trade and Work In
Process |
(19.900) |
|
|
b) Consumption of Raw Materials (Net) |
4096.700 |
|
|
c) Purchase of Traded Goods |
199.700 |
|
|
d) Employee Cost |
253.500 |
|
|
e) Depreciation |
120.100 |
|
|
f) Other Expenditure |
1062.500 |
|
|
g)
Total Expenditure (a to f) |
5712.600 |
|
|
|
|
|
3. |
Profit From Operations before Other Income, Interest and
Exceptional Items (1-2) |
807.900 |
|
|
|
|
|
4. |
Other Income |
56.900 |
|
|
|
|
|
5. |
Profit Before Interest and Exceptional Items (3+4) |
864.800 |
|
|
|
|
|
6. |
Interest |
2.500 |
|
|
|
|
|
7. |
Profit After Interest but before Exceptional Items (5-6) |
862.300 |
|
|
|
|
|
8. |
Exceptional Items |
-- |
|
|
|
|
|
9. |
Profit from Ordinary Activities before Tax (7+8) |
862.300 |
|
|
|
|
|
10. |
Tax
Expense |
|
|
|
a) Current tax |
228.800 |
|
|
b) Deferred tax |
21.200 |
|
|
Total |
250.000 |
|
|
|
|
|
11. |
Net Profit from Ordinary Activities after Tax (9-10) |
612.300 |
|
|
|
|
|
12. |
Extraordinary Item (net of expense) |
-- |
|
|
|
|
|
13. |
Net Profit for the period (11-12) |
612.300 |
|
|
|
|
|
14. |
Paid-up Equity Share Capital (Face Value of Rs.10/- Each) |
538.900 |
|
|
|
|
|
15. |
Reserves Excluding Revaluation Reserve |
-- |
|
|
|
|
|
16. |
Basic
and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised |
|
|
|
a) Basic and diluted EPS before extraordinary items |
11.36 |
|
|
b) Basic and diluted EPS after extraordinary items |
11.36 |
|
|
|
|
|
17. |
Public
Shareholding |
|
|
|
-Number of Shares |
16562212 |
|
|
- Percentage of Shareholding |
30.73 |
|
|
|
|
|
18. |
Promoters
and Promoter Group Shareholding |
|
|
|
a)
Pledged/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 |
37239760 |
|
|
- 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) |
69.27 |
Note:
1.
As the company’s business activity falls
within a single segment viz. ‘Paints’ and the sales substantially being in the
domestic market, the disclosure requirement of Accounting Standard-17 “Segment
Reporting”, notified under the companies (Accounting Standards) Rules, 2006,
are not applicable.
2.
There were no investor complaints
pending at the beginning and at the end of the quarter. Two complaints were
received during the quarter and were duly attended.
3.
Figure of the previous period / year
have been regrouped wherever necessary.
4.
The above results have been reviewed by
the audit committee and approved by the board of directors at their meeting
held on 29th July, 2011. These results have been subjected to a
“Limited review” by the statutory auditors of the company.
FIXED ASSETS
·
Land
·
Buildings
·
Building Plant and Machinery
·
Plant and Machinery
·
Laboratory Equipment
·
Furniture Fittings and Equipment
·
Furniture Fittings
·
Electrical Installation
·
Electrical Installation
·
Motor Cars and Vehicles
BUSINESS DESCRIPTION:
Subject is an India-based paint company engaged in
manufacturing a range of products for every surface. The products of the
Company include decorative paints, automotive coatings, general industrial
coatings, high performance coatings, speciality coatings and powder coatings.
The Company is the subsidiary of Kansai Paint. As of March 31, 2011, KNPL
operated through 74 sales locations and five factories. Subject manufacturing
operations are spread across
NEW RELEASE:
Economic Times (
08 August 2011
BY BY SUTANUKA
GHOSAL, THE ECONOMIC TIMES,
August 08--KOLKATA -- Paint companies may go in for a price rise as raw material prices are going northwards. Input cost has gone up by 13 percent in the first quarter of the current fiscal year and this may force companies to increase product prices by 3 percent in coming months. Price of titanium dioxide (TiO2), one of the key raw materials for paint, will go up further as closure of a few Tio2 plants in the West has created a wide gap between demand and supply, thus pushing the prices up almost every quarter.
Talking to ET, Ramakanth Akula, president (decorative) of
Nippon Paint (
The size of the Indian paint industry is estimated at. Rs.210000.000 millions, which has a growth potential of around 15 percent. The organised sector constitutes 65 percent of this value while the remaining 35 percent is contributed by the unorganised sector.
"Raw materials account for about 60 percent of the total cost. Any increase in the input cost will affect the margins adversely. In the decorative paint category, the price hikes are passed on to consumers when it becomes untenable, but it is not the same in the industrial paint sector owing to the contractual obligations," Akula added.
Debi Prosad Basu, president of Indian Paint Association, said: "There is a huge competition in the industrial paint category and, therefore, it will become difficult to sell the product at high prices." Berger Paints has raised prices thrice in the last quarter with an aggregate impact of 8 percent.
PRESS TRUST OF
29 July 2011
Mumbai, July 29 2011 (PTI) -- Kansai Nerolac Paints Limited (KNPL), one of the leading Paint companies in India today registered 17.9 per cent growth in net profit at Rs 612.300 millions in Q1 FY 12.
For the quarter, the company declared net sales of Rs 6516.600 millions, marking a growth of 24.1 per cent over the same quarter of the previous year, a company statement said.
"While there has been a good demand for decorative products, we have seen moderation of demand in automobiles, white goods and electrical appliances during the quarter. The inflationary pressures witnessed in earlier quarters continued. KNPL has been able to partly pass on this increase to the market," Kansai Nerolac Paints Managing Director, H M Bharuka said.
"Going forward, the high interest rates coupled with uncertainty in the global economy and high input prices, make the immediate future very challenging, both, in terms of top-line and profitability," he said.
"We will have to wait and watch as to how these factors will play out and hence the out-look for the short term remains cautious overall. However the picture of paint demand remains very positive over the long term," Bharuka added.
The size of domestic paint industry is estimated to be at Rs 240000.000 millions as of March 2011. The good growth in infrastructure, core sector as well as automobile and real estate is likely to have a positive effect on the overall demand of paint for the industry, he said. PTI AP NP.
ACCORD FINTECH (
17 June 2011
|
Check List by
Info Agents |
Available in
Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
Yes |
|
5) Type of Business |
Yes |
|
6) Line of Business |
Yes |
|
7) Promoter's background |
Yes |
|
8) No. of employees |
Yes |
|
9) Name of person contacted |
No |
|
10) Designation of contact person |
No |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
Yes |
|
20) Export / Import details (if
applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter
involved in |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
Yes |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
Yes |
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.52.52 |
|
|
1 |
Rs.85.49 |
|
Euro |
1 |
Rs.69.61 |
INFORMATION DETAILS
|
Report Prepared
by : |
PRL |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
63 |
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 |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.