1. Summary Information
|
|
|
Country |
|
|
Company Name |
ASIAN PAINTS LIMITED |
Principal Name 1 |
Mr. Ashwin C. Choksi |
|
Status |
Very Good |
Principal Name 2 |
Mr. Abhay Vakil |
|
|
|
Registration # |
11-004598 |
|
Street Address |
6-A Shanthi Nagar, Santacruz (East) Mumbai – 400055, Maharashtra |
||
|
Established Date |
24.10.1945 |
SIC Code |
-- |
|
Telephone# |
91-22-56958000 |
Business Style 1 |
Manufacturers |
|
Fax # |
91-22-56958803 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Synthetic Enamel Other Colours |
|
|
# of employees |
3500
(Approximately) |
Product Name 2 |
Phthalic Anhydride |
|
Paid up capital |
Rs.
959,197,790/- |
Product Name 3 |
Pentaerythritol |
|
Shareholders |
Shareholding of
Promoter and Promoter Group 52.79%, Public Shareholding 47.21% |
Banking |
State Bank of |
|
Public Limited Corp. |
Yes |
Business Period |
67 Years |
|
IPO |
Yes |
International Ins. |
- |
|
Public |
Yes |
Rating |
Aa (75) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Direct Subsidiary |
Mauritius |
Asian Paints (International) Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2012 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
15,615,100,000 |
Current Liabilities |
18,281,200,000 |
|
Inventories |
12,644,200,000 |
Long-term Liabilities |
1,631,500,000 |
|
Fixed Assets |
10,090,400,000 |
Other Liabilities |
5,009,800,000 |
|
Deferred Assets |
000 |
Total Liabilities |
24,922,500,000 |
|
Invest& other Assets |
11,450,600,000 |
Retained Earnings |
23,918,600,000 |
|
|
|
Net Worth |
24,877,800,000 |
|
Total Assets |
49,800,300,000 |
Total Liab. & Equity |
49,800,300,000 |
|
Total Assets (Previous Year) |
38,616,600,000 |
|
|
|
P/L Statement as of |
31.03.2012 |
(Unit: Indian Rs.) |
|
|
Sales |
79,641,600,000 |
Net Profit |
9,583,900,000 |
|
Sales(Previous yr) |
63,222,400,000 |
Net Profit(Prev.yr) |
7,751,500,000 |
MIRA
INFORM REPORT
|
Report Date : |
12.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
ASIAN PAINTS LIMITED (w.e.f. 02.06.2005) |
|
|
|
|
Formerly Known As : |
ASIAN PAINTS INDIA LIMITED |
|
|
|
|
Registered
Office : |
6-A Shanthi Nagar, Santacruz (East) Mumbai – 400055, Maharashtra |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
24.10.1945 |
|
|
|
|
Com. Reg. No.: |
11-004598 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.959.200
Millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L24220MH1945PLC004598 |
|
|
|
|
TAN No.: (Tax
Deduction & Collection Account No.) |
MUMA00665A/NGPA00953B/
PNEA01615F/MUMA08600E |
|
|
|
|
PAN No.: (Permanent
Account No.) |
AAACA3622K |
|
|
|
|
Legal Form: |
A Public Limited Liability Company. The Company’s Shares are Listed on The Stock Exchanges. |
|
|
|
|
Line of
Business : |
Manufacturers of
Paints. |
|
|
|
|
No. of
Employees : |
3500
(Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (75) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
Maximum Credit Limit : |
USD 99500000 |
|
|
|
|
Status : |
Very Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well
established and a reputed company having fine track. Financial position of
the company appears to be sound. Fundamentals are strong and healthy. Trade
relations are reported as fair. Business is active. Payments are reported to
be regular and as per commitments. The company can
be considered good 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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces of
its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to become
a major exporter of information technology services and software workers. In
2010, the Indian economy rebounded robustly from the global financial crisis -
in large part because of strong domestic demand - and growth exceeded 8%
year-on-year in real terms. However, India's economic growth in 2011 slowed
because of persistently high inflation and interest rates and little progress
on economic reforms. High international crude prices have exacerbated the
government's fuel subsidy expenditures contributing to a higher fiscal deficit,
and a worsening current account deficit. Little economic reform took place in
2011 largely due to corruption scandals that have slowed legislative work.
India's medium-term growth outlook is positive due to a young population and
corresponding low dependency ratio, healthy savings and investment rates, and
increasing integration into the global economy. India has many long-term
challenges that it has not yet fully addressed, including widespread poverty,
inadequate physical and social infrastructure, limited non-agricultural
employment opportunities, scarce access to quality basic and higher education,
and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
A1 + [Short Term] |
|
Rating Explanation |
This rating are considered to have very strong degree of safety
regarding timely payment of financial obligation such instrument carry lowest
credit risk. |
|
Date |
05.06.2012 |
|
Rating Agency Name |
CRISIL |
|
Rating |
AAA [Long Term] |
|
Rating Explanation |
This rating are considered to have highest degree of safety regarding
timely servicing of financial obligation such instrument carry lowest credit
risk. |
|
Date |
05.06.2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered/
Mumbai Office: |
6-A Shanthi Nagar, Santacruz (East) Mumbai – 400055, Maharashtra,
India |
|
Tel. No.: |
91-22-56958000/
39818000/39818990 |
|
Fax No.: |
91-22-56958803/
8888/ 8107/ 39818888 /39818787 |
|
E-Mail : |
compliance.officer@asianpaints.com
|
|
Website : |
|
|
|
|
|
Head Office : |
Nirmal, 5th
Floor, Nariman Point, Mumbai - 400021, Maharashtra, India |
|
Tel. No.: |
91-22-22024544/
22024517/ 22024799 |
|
Fax No.: |
91-22-22028993 |
|
|
|
|
Factory : |
Plot No.2702, GIDC Industrial Area, Ankleshwar-393002, Gujarat, India
B5-B10, SIPCOT Industrial Complex, Cuddalore – 607 005,
Tamilnadu,
India
Plot No.3/25, MIDC Taloja, Raigad – 410
208,
|
|
|
|
|
Mumbai Office : |
912, Raheja
Centre, Free |
|
Tel. No. : |
91-22-22881568/
1569/ 4527/ 22825163 |
|
Fax No. : |
91-22-22825484 |
|
Email : |
|
|
|
|
|
Accounts,
Materials/ Phthalic
Division : |
Plot No. 5,
Gaiwadi Industrial Estate, S. V. Road, Goregaon (West), Mumbai – 400 062,
Maharashtra, India |
|
|
|
|
Penta
Division: |
Warehouse No. E -
89, |
|
|
|
|
Sales Offices
: |
Located At:
|
|
|
|
|
Regional Distribution
Centers : |
Located At:
|
|
|
|
|
Overseas
Offices : |
Located At:
|
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. Ashwin C. Choksi |
|
Designation : |
Chairman and Managing Director |
|
Qualification : |
M. Com. |
|
Date of Appointment : |
01.01.1965 |
|
|
|
|
Name : |
Mr. Ashwin S Dani |
|
Designation : |
Vice Chairman and Managing Director |
|
Qualification : |
B. Sci (Hons.), B. Sci (Tech.), M.S. |
|
Date of Appointment : |
01.10.1968 |
|
|
|
|
Name : |
Mr. Abhay Vakil |
|
Designation : |
Managing Director |
|
Qualification : |
B.Sci., B.S. |
|
Date of Appointment : |
05.08.1974 |
|
|
|
|
Name : |
Mr. P. M. Murty |
|
Designation : |
Managing Director and Chief Executive Officer |
|
|
|
|
Name : |
Mr. Mahendra C
Choksi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Amar A Vakil |
|
Designation : |
Director |
|
|
|
|
Name : |
Mrs. Ina Dani |
|
Designation : |
Additional Director |
|
|
|
|
Name : |
Ms. Tarjani Vakil
|
|
Designation : |
Chariperson of Audit Committee and Director |
|
|
|
|
Name : |
Mr. Dipankar Basu |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Mahendra Shah |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Deepak M.
Satwalekar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R. A. Shah |
|
Designation : |
Additional Director |
|
|
|
|
Name : |
Dr. Swaminathan
Sivaram |
|
Designation : |
Additional Director |
|
|
|
|
Name : |
Mr. Mahendra M.
Shah |
|
Designation : |
Additional Director |
|
|
|
|
Name : |
Mr. S Ramadorai |
|
Designation : |
Additional Director |
KEY EXECUTIVES
|
Name : |
Mr. Jayesh Merchant |
|
Designation : |
Chief Financial Officer and Company Secretary |
|
|
|
|
Audit
Committee: |
|
|
|
|
|
Shareholders Grievance/
Investors Grievance Committee: |
|
|
|
|
|
Remuneration
Committee: |
|
|
|
|
|
Share Transfer
Committee: |
|
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2012
|
Category of
Shareholder |
Total No. of
Shares |
Total Shareholding
as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
10,635,701 |
11.09 |
|
|
40,000,978 |
41.70 |
|
|
- |
- |
|
|
50,636,679 |
52.79 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
50,636,679 |
52.79 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1,338,435 |
1.40 |
|
|
9,908 |
0.01 |
|
|
6,989,651 |
7.29 |
|
|
17,344,686 |
18.08 |
|
|
25,682,680 |
26.78 |
|
|
|
|
|
|
5,523,220 |
5.76 |
|
|
|
|
|
|
11,749,638 |
12.25 |
|
|
844,370 |
0.88 |
|
|
1,483,192 |
1.55 |
|
|
1,483,192 |
1.55 |
|
|
19,600,420 |
20.43 |
|
Total Public shareholding (B) |
45,283,100 |
47.21 |
|
Total (A)+(B) |
95,919,779 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
95,919,779 |
- |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of
Paints. |
||||||||
|
|
|
||||||||
|
Products : |
|
PRODUCTION STATUS [AS ON 31.03.2011]
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
|
|
|
|
|
(a) Paints, enamels, varnishes – In House(2) |
MT / KL |
594150 |
474881(4) |
|
- Contract |
|
|
210882 |
|
(b) Synthetic Resins (For mainly captive
consumption) |
MT |
188880 |
123992(5) |
|
(c) Phthalic Anhydride |
MT |
29796 |
21241(6) |
|
(d) Maleic Acid |
MT |
4860 |
3483 |
|
(e) Pentaerythritol |
MT |
5400 |
5400(7) |
|
(f) Sodium Formate |
MT |
3300 |
3226 |
|
(g) Formaldehyde (100%)(8) - Cuddalore |
MT |
8100 |
5951 |
|
- Purchase |
|
- |
- |
NOTES:
1. Installed capacities are as certified by the management on which
auditors have relied.
2. Manufacturing plants at Mumbai, Ankleshwar, Patancheru, Kasna,
Sriperumbudur and Taloja.
3. Manufacturing plants at Mumbai, Ankleshwar, Patancheru, Kasna,
Sriperumbudur.
4. Includes 6,662 MT (Previous year 6,012 MT) of products processed for third
party.
5. Includes 2,823 MT (Previous year 2,210 MT) of resins processed for
third party.
6. Includes 13,225 MT (Previous year 10,696 MT) Phthalic Anhydride
transferred to paint plants for captive consumption.
7. Includes 2,424 MT (Previous year 2,375 MT) Pentaerythritol
transferred to paint plants for captive consumption.
8. Mainly for internal consumption in the manufacture of
Pentaerythritol.
GENERAL INFORMATION
|
No. of Employees : |
3500
(Approximately) |
|||||||||||||||||||||||||||||||||||||||||||||
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|
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|
Bankers : |
State Bank of
India, Mumbai, Maharashtra, India |
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|
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|
Facilities : |
|
|||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
1) Shah and
Company Chartered
Accountants |
|
|
|
|
Name : |
2) BSR and Associates Chartered Accountants |
|
|
|
|
Joint Venture: (In which the Company has 50% equity interest) : |
i) Asian PPG Industries Limited Subsidiary of
Asian PPG Industries Limited: a) Faaber Paints
Private Limited b) PPG Asian Paints Lanka Private Limited (Incorporated in April,
2011) ii) Asian Paints PPG Limited (Incorporated in August, 2011) |
|
|
|
|
Direct Subsidiaries : |
·
Asian Paints (Nepal) Private Limited, Nepal ·
Asian Paints (International) Limited, Mauritius ·
Asian Paints Industrial Coatings Limited, India ·
Multifacet Infrastructure (India) Limited, India ·
Maxbhumi Developers Limited, India ·
AP Coatings Limited, India |
|
|
|
|
Related Parties : |
·
AR Intertect Design Private Limited ·
Asteroids Trading and Investments Private Limited ·
Castle Investment and Industries Private Limited ·
Centaurus Trading and Investments Private Limited ·
Clear Mipak Packaging Solutions Limited ·
Coatings Specialities (India) Limited ·
Dakshina Properties Private Limited ·
Dani Finlease Limited ·
Doli Trading and Investments Private Limited ·
Elcid Investments Limited ·
ELF Trading and Chemicals Mfg. Limited ·
Express Engineering and Construction Private
Limited ·
Express Restaurant Private Limited ·
Express Transport Private Limited ·
Geetanjali Trading and Investments Private
Limited ·
Gujarat Organics Limited ·
Haish Holding and Trading Company Private Limited ·
Himanshu Holdings Private Limited ·
Hiren Holdings Private Limited ·
Hitech Plast Limited ·
ISIS Holding and Trading Company Private Limited ·
Jalaj Trading and Investments Company Private
Limited ·
Jaldhar Investments and Trading Company Private
Limited ·
Kalica Paper Industries Private Limited ·
Lambodar Investments and Trading Company Ltd ·
Lyon Investment and Industries Private Limited ·
Murahar Investments and Trading Company Ltd ·
Navbharat Packaging Industries Limited ·
Nehal Trading and Investments Private Limited ·
Omega Properties Private Limited ·
Pragati Chemicals Limited ·
Rangudyan Insurance Broking Services Limited ·
Resins and Plastics Limited ·
Ricinash Oil Mills Limited ·
Rupen Investment and Industries Private Limited ·
S.C. Dani Research Foundation Private Limited ·
Sadavani Investments and Trading Company Private
Limited ·
Sapan Investments Private Limited ·
Satyadharma Investments and Trading Company
Private Limited ·
Sudhanva Investments and Trading Company Private
Limited ·
Suprasad Investments and Trading Company Private
Limited ·
Suptaswar Investments and Trading Company Limited ·
Suryakant Paint Accessories Private Limited ·
Tru Trading and Investments Private Limited ·
Ultramarine and Pigments Limited ·
Unnati Trading and Investments Private Limited ·
Vijal Holding and Trading Company Private Limited ·
Vikatmev Containers Limited |
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
99500000 |
Equity Shares |
Rs.10/- each |
Rs.995.000 Millions |
|
50000 |
11% Redeemable Cumulative Preferences Shares |
Rs.100/- each |
Rs.5.000 Millions |
|
|
Total |
|
Rs.1000.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
95919779 |
Equity Shares |
Rs. 10/-
each |
Rs.959.200
Millions |
RECONCILIATION OF
THE NUMBER OF SHARES OUTSTANDING AT THE BEGINNING AND AT THE END OF THE YEAR
|
EQUITY SHARES |
AS ON 31.03.2012 |
AS ON 31.03.2011 |
||
|
|
No. of Shares |
Rs. in Millions |
No. of Shares |
Rs. in Millions |
|
At the beginning of the year |
95919779 |
959.200 |
95919779 |
959.20 |
|
Add: Issued
during the year |
-- |
-- |
-- |
-- |
|
Outstanding at
the end of the year |
95919779 |
959.200 |
95919779 |
959.200 |
DETAILS OF
SHAREHOLDERS HOLDING MORE THAN 5% EQUITY SHARES IN THE COMPANY #
|
NAME OF SHAREHOLDERS |
AS ON 31.03.2012 |
AS ON 31.03.2011 |
||
|
|
No. of Shares |
Percentage
Holding |
No. of Shares |
Percentage
Holding |
|
Equity Shares of
Rs.10/- each |
|
|
|
|
|
1. Geetanjali
Trading and Investment Private Limited |
15492868 |
16.15 |
14922538 |
15.56 |
|
2. Life
Insurance Corporation of India |
5313232 |
5.54 |
5645727 |
5.89 |
# As per the records of the Company, including its register of members.
TERMS/RIGHTS
ATTACHED TO EQUITY SHARES
The Company has
only one class of shares referred to as equity shares having a par value of Rs.
10/- per share. Each holder of equity shares is entitled to one vote per share.
The Company declares and pays dividends in Indian Rupees. Payment of dividend
is also made in foreign currency to shareholders outside India. The dividend
proposed by the Board of Directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting, except in the case of
interim dividend.
The Board of
Directors at its meeting held on 21st October, 2011 declared an interim
dividend of Rs. 9.50 per equity share of Rs. 10/- each. A final dividend of Rs.
30.50 per share has been recommended by the Board of Directors at its meeting
held on 8th May, 2012, subject to the approval by the shareholders at the
ensuing Annual General Meeting. If approved, the total dividend (interim and
final dividend) for the financial year 2011-12 will be Rs. 40.00 per equity
share; Rs. 32/- per equity share was paid as dividend for the previous year.
The total dividend appropriation for the year ended 31st March, 2012 amounted to
Rs. 4459.300 Millions including corporate dividend tax of Rs. 622.400 Millions.
(Previous year Rs. 3570.500 Millions including corporate dividend tax of Rs.
501.100 Millions).
As per the
Companies Act, 1956, the holders of equity shares will be entitled to receive
remaining assets of the
Company, after
distribution of all preferential amounts in the event of liquidation of the
Company. However no such preferential amounts exist currently. The distribution
will be in proportion to the number of equity shares held by the shareholders.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
959.200 |
959.200 |
959.200 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
23918.600 |
18794.000 |
14613.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
24877.800 |
19753.200 |
15572.200 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
123.700 |
234.300 |
255.900 |
|
|
2] Unsecured Loans |
1507.800 |
414.300 |
430.000 |
|
|
TOTAL BORROWING |
1631.500 |
648.600 |
685.900 |
|
|
DEFERRED TAX LIABILITIES |
807.500 |
755.000 |
479.000 |
|
|
|
|
|
|
|
|
TOTAL |
27316.800 |
21156.800 |
16737.100 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
10090.400 |
10571.900 |
7074.600 |
|
|
Capital work-in-progress |
6028.400 |
396.700 |
3807.200 |
|
|
|
|
|
|
|
|
INVESTMENT |
5422.200 |
10347.600 |
7036.900 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
12644.200
|
10717.600
|
7631.400
|
|
|
Sundry Debtors |
5002.400
|
3666.800
|
3314.300
|
|
|
Cash & Bank Balances |
5009.700
|
204.700
|
286.000
|
|
|
Other Current Assets |
952.700
|
871.200
|
678.500
|
|
|
Loans & Advances |
4650.300
|
1838.400
|
1511.000
|
|
|
Interests accrued on Investment |
0.000
|
1.700
|
1.600
|
|
Total
Current Assets |
28259.300
|
17300.400
|
13422.800
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
10690.600
|
7437.300 |
5717.100 |
|
|
Other Current Liabilities |
7590.600
|
6640.000
|
5845.600
|
|
|
Provisions |
4202.300
|
3382.500
|
3041.700
|
|
Total
Current Liabilities |
22483.500
|
17459.800
|
14604.400
|
|
|
Net Current Assets |
5775.800
|
(159.400)
|
(1181.600)
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
27316.800 |
21156.800 |
16737.100 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
79641.600 |
63222.400 |
51250.800 |
|
|
|
Other Income |
1414.900 |
881.600 |
1438.500 |
|
|
|
TOTAL (A) |
81056.500 |
64104.000 |
52689.300 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material Cost |
47227.400 |
36468.700 |
28402.400 |
|
|
|
Employee Cost |
3416.300 |
3004.500 |
2608.400 |
|
|
|
Manufacturing, Administrative and Selling and Distribution Expenses |
-- |
12304.200 |
10141.400 |
|
|
|
Exceptional Item |
-- |
0.000 |
(254.600) |
|
|
|
Purchases of Stock-in-trade |
1204.100 |
-- |
-- |
|
|
|
Other Expenses |
15427.000 |
-- |
-- |
|
|
|
Changes in
inventories of finished goods, work in progress and stock-in-trade |
(1150.700) |
-- |
-- |
|
|
|
TOTAL (B) |
66124.100 |
51777.400 |
40897.600 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
14932.400 |
12326.600 |
11791.700 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
308.200 |
153.500 |
137.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
14624.200 |
12173.100 |
11654.100 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
994.900 |
944.800 |
607.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
13629.300 |
11228.300 |
11046.700 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
4045.400 |
3476.800 |
3301.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
9583.900 |
7751.500 |
7745.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
6000.000 |
6000.000 |
2300.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend |
911.300 |
815.300 |
815.300 |
|
|
|
Proposed Dividend |
2925.600 |
2254.100 |
1774.500 |
|
|
|
Tax on Dividend |
622.400 |
501.100 |
433.300 |
|
|
|
Transfer to General Reserve |
4124.600 |
4181.000 |
1021.900 |
|
|
BALANCE CARRIED
TO THE B/S |
7000.000 |
6000.000 |
6000.000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings of Own Product at FOB Value |
211.600 |
238.100 |
148.100 |
|
|
|
Export of Traded Goods at FOB Value |
3.700 |
7.500 |
5.600 |
|
|
|
Royalty |
145.400 |
126.300 |
149.200 |
|
|
|
Others Receipt Including
Recoveries from Subsidiaries |
61.800 |
67.600 |
41.700 |
|
|
TOTAL EARNINGS |
422.500 |
439.500 |
344.600 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
9579.400 |
7418.500 |
4753.000 |
|
|
|
Stores & Spares |
62.200 |
56.100 |
3.800 |
|
|
|
Capital Goods |
1434.500 |
68.300 |
1076.100 |
|
|
|
Others |
0.000 |
3.800 |
4.200 |
|
|
TOTAL IMPORTS |
11076.100 |
7546.700 |
5837.100 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic and
Diluted – Before Exceptional Items |
99.92 |
80.81 |
78.09 |
|
|
|
Basic and
Diluted – After Exceptional Items |
99.92 |
80.81 |
80.74 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2012 |
|
Net Sales |
|
|
20558.500 |
|
Total Expenditure |
|
|
16511.600 |
|
PBIDT (Excl OI) |
|
|
4046.900 |
|
Other Income |
|
|
252.200 |
|
Operating Profit |
|
|
4299.100 |
|
Interest |
|
|
77.700 |
|
PBDT |
|
|
4221.400 |
|
Depreciation |
|
|
273.500 |
|
Profit Before Tax |
|
|
3947.900 |
|
Tax |
|
|
1202.000 |
|
Profit After Tax |
|
|
2745.900 |
|
Net Profit |
|
|
2745.900 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
11.82
|
12.09
|
14.70
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
17.11
|
17.76
|
21.55
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
35.54
|
40.28
|
53.89
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.55
|
0.57
|
0.71
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.97
|
0.92
|
0.98
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.25
|
0.99
|
0.92
|
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
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 |
No |
|
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 |
No |
|
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 |
No |
|
31] |
PAN of Proprietor/Partner/Director, if available |
No |
|
32] |
Date
of Birth of Proprietor/Partner/Director, if available |
Yes |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
HISTORY:
Armed with little knowledge and great determination,
Champaklal H. Choksey, Chimanlal N. Choksi, Suryakant C. Dani and Arvind R.
Vakil get together to manufacture paint in a garage on
The Company was converted into a public limited company in the year 1973. A major modernisation programme was undertaken to streamline the paint production facilities by improving the layout of machines, addition to balancing equipment and replacement of old machinery during the year 1974 to meet the demand. During the year 1985, The Company had set up a third paint unit at Patancheru, a notified backward area near Hyderabad, for the manufacture of 15,000 MT of paints and enamels and also in the same year entered into a collaboration agreement with Nippon Paints Company Limited, Japan, to obtain technical know-how to manufacture powder coating and coil coatings. Company commissioned a plant for the manufacture of synthetic rubbers lattices with a capacity of 1,200 tonnes per annum in the year of 1987. In the identical year of 1987, the company jointly with Tamil Nadu Industrial Development Corporation (TIDCO) promoted a joint sector company under the name of Pentasia Chemicals Limited, (PCL), for the purpose of manufacture 3,000 TPA of pentaerythritol and 1,800 TPA of sodium format.
In the year 1990, the company had promoted Asian Paints
(South Pacific) Limited, in
During the same year 2002, the company had acquired
controlling stake of 50.1 per cent in Berger International,
During 2003-04, Pentasia Investments Limited, (wholly owned subsidiary of the company) was merged with the company. In 2004, the company had launched paint solutions for kids. In January of the year 2005, Asian Paints new paint plant at Sriperumbudur, in Tamil Nadu was commenced its production. Berger International made a partnership with Filipino firm Dutch Boy during the year 2005.
During the year 2006, the company had commissioned a
manufacturing facility for powder coatings at Baddi, Himachal Pradesh. The
Company was ranked 24th amongst the top paint companies in the world by
Coatings World - Top Companies Report 2006. In September of the year 2007,
company tailored its first exclusive industrial coatings manufacturing facility
at Taloja in
Company aims to become one of the top five Decorative
coatings companies world-wide by leveraging its expertise in the higher growth
emerging markets. Simultaneously, the company intends to build long-term value
in the Industrial coatings business through alliances with established global
partners.
STANDALONE
FINANCIALS:
Net Revenue from
Operations for the standalone entity increased to Rs. 79641.600 Millions from
Rs. 63360.800 Millions in the previous year – a growth of 25.7%. The operating
profit (EBITDA) increased by 21.2%, from Rs. 12321.600 Millions to Rs.
14932.400 Millions. The profit after tax for the current year is Rs. 9583.900
Millions as against Rs. 7751.500 Millions in the previous year – a growth of
23.6%.
EXPANSION OF THE
JOINT VENTURE WITH PPG INDUSTRIES INC., USA.
During the FY
2011–12, the Company has filed a Composite Scheme of restructuring under
Section 391– 394 of the Companies Act, 1956 and other applicable provisions
with the Hon’ble High Court of Judicature of Bombay. The Scheme envisages
merger of AP Coatings Ltd (100% subsidiary of the Company) and a wholly owned
Indian subsidiary of PPG Industries Securities Inc., USA (PPG) i.e. PPG
Coatings India Private Limited into Asian PPG Industries Limited (APPG), 50:50
joint venture between the company and PPG and thereafter, certain businesses
will demerge into Asian Paints PPG Limited (APPL), new 50:50 joint venture
between the Company and PPG.
As informed in the
last year’s Annual Report, the new Joint venture will service the protective,
industrial powder coatings, industrial containers and light industrial coatings
markets. The Company will have effective management control in APPL while PPG
will take lead in APPG. This would enable utilization of respective strengths
in order to capture the growth in infrastructure development and globally
driven markets in India.
MANAGEMENT DISCUSSION AND ANALYSIS:
The year began
with several challenges both on the domestic and international fronts. The
upheaval in Middle East, sovereign debt crisis in the European countries and
weak recovery hopes for other developed economies threatened to derail the
global economic environment at the beginning of the year. Additionally, India
had its own set of challenges viz., inflation, interest rates and regulatory
uncertainties. Amidst all these, however, there was a sense of optimism and
hope that the environment would recover sooner than later and it was expected
that the Indian economy would grow at around 8.5% on the back of strong
domestic demand and a thrust on Infrastructure development.
Reality, however,
turned out to be otherwise. The macro business environment during the year was
characterized
by uncertainty and
volatility. The set of challenges which they began with either intensified or
are still to be addressed. The sovereign debt crisis in Europe remains
unresolved, USA saw a downgrade for the first time in the recent history and
Middle East continues to face socio-political tensions. Expectedly, crude oil
prices have remained firm during the year leading to commodity inflation across
the board. The world has been trying to solve these problems or at least avoid
any further aggravation, for quite some time now.
The ground
realities in India have not met the expectations either. The country is
expected to have grown at 6.9%
during the year
against a growth of 8.4% registered in previous year. This in itself is an
indication of the pressures being faced on the domestic front. Although
disappointing, the fact that the country was battling near double digit
inflation (mainly due to global cost push and agricultural supply constraints)
cannot be ignored. Sticky inflation also led to a tight monetary policy which
moderated growth during the course of the year. The impact was largely felt on
the industrial sector whereas agriculture and services continued to do well.
The rupee felt this pressure and breached the 50 level mark during the year,
aggravating the concerns for importers.
However, after
remaining subdued for a better part of the year, some of the indices have
started looking up. Inflation has started showing signs of easing and RBI has
responded by cutting CRR and interest rates, signaling a softer regime going
forward. It remains to be seen how the economy responds to these measures.
In this uncertain
environment, the Company has made the best use of its resources and abilities
to come out stronger from the tides. They have a lot to thank the outgoing
Managing Director and CEO, Shri P M Murty for what the Company has achieved.
His contribution to the Company during his tenure needs no reiteration. They
are indeed grateful to him for his leadership and guidance.
THE PERFORMANCE OF THE COMPANY DURING FY 2011-12 IS
DETAILED BELOW:
PRODUCTS AND
MARKETS:
The Company
operates in Decorative coatings and Industrial coatings segments across India
and in the geographies of Asia, Middle East, Caribbean and South Pacific
Islands through its subsidiaries and joint ventures. It has presence in 17
countries with 24 paint manufacturing facilities.
The Paint industry
volume growth in India during FY 2011-12 was strong across regions, albeit a
bit lower than initial expectations. Margins in the industry were under
pressure owing to surging inflation in input prices seen during the year.
Industrial Paints business faced pressures due to the slowdown witnessed in the
Industrial sector. Especially in automotive coatings, the markets didn’t
perform as was expected initially due to surging fuel prices and tightening
interest rates.
International
business did well in spite of the regional turmoil in Middle East and subdued
economic conditions in the Caribbean region. The Asian markets fared well owing
to strong domestic demand conditions. Raw material inflation caused pressures
on the margins of international units as well.
DECORATIVE PAINTS INDIA:
Decorative Paints
contribute more than 75% of the Indian Paints market. The Company continues to
do well in the market place and has focused on defending the position earned
over the years. Strong volume and value growth was seen in the segment during
FY 2011-12. The strategies followed by the Company have enabled it to grow
satisfactorily in spite of stiff competition.
The key feature of
FY 2011-12 was the high level of inflation for the second consecutive year.
Despite five price increases with an overall impact in excess of 12%, gross
margins dropped during the year. Fortunately, the substantial increases in
prices did not affect demand which continued to be fairly robust. Going
forward, margins are likely to remain under pressure in light of the uncertainty
in commodity and other input prices.
The trend of high
growth in emulsions and exteriors witnessed in recent years continued. This
helped in registering a better mix and higher growth rates. Overall, the product
mix offered by the Company is getting richer on account of good growth rates
seen in emulsions, thus steadily reducing the dependence on enamels and
distempers. The Company offers the broadest mix in the product portfolio to the
customers and has successfully established its strength in the premium segment
in the last few years. During FY 2011-12, the interior emulsion category
continued to grow well on the back of good marketing work done in Royale (the
new Teflon co-branding and the launch of the Shyne variant). Tractor Emulsion
continues to grow extremely well, thereby, becoming the preferred Economy
Emulsion in the market. The Exterior Emulsion category has strengthened with
the inclusion of Apex Ultima and textured finishes in the portfolio. Asian Wall
Putty has also been growing well in the recent past.
Major thrust areas
were identified to secure growth, ensure customer satisfaction, supply chain
capability and capability building for the future during FY 2011-12. The
Company continued to expand its sales network. The ColourWorld reach has now
grown to over 21000 dealers. The 43 Colour Idea stores that have been opened so
far continue to be
an area of consumer delight. The concept would be expanded significantly over
the next three years. The Signature stores in Mumbai and Delhi (which was
opened during the year) continue to attract a large number of consumers who
respond very positively to the experience. Innovative marketing initiatives are
being undertaken to increase consumer connect and awareness on painting. The
‘Happy Painting Guide’ and ‘Colour Scheme PRO’ (Mobile application enabling
consumers to create colour combinations) that have been launched are a step in
this direction. Samplers and Foresites service continue to receive a good response.
Shop-boy and dealer training and other Critical Retailer’s specific initiatives
are also being undertaken vigorously.
With volumes
doubling nearly every five years, the Company needs to invest in capability to
effectively implement its growth strategies. Work on the construction of the
7th Decorative paint plant at Khandala (Maharashtra) is progressing steadily
and is on course for commissioning a capacity of 300,000 KL in fourth quarter
of FY 2012-13. Rohtak plant (Haryana) produced 125,000 KL in its second year of
operation. The capacity at Rohtak has been increased from 150,000 KL to 200,000
KL per annum and this capacity is now available from the first quarter of FY
2012-13.
Construction of
the Distribution Centre at Patancheru Plant is underway and by the end of FY
2012-13, all plants with the exception of the Bhandup Plant would have
operating Distribution Centres allowing complete migration to the new
Distribution Model. This new model is expected to facilitate higher service
levels with lower levels of inventory going forward.
INTERNATIONAL OPERATIONS:
FY 2011-12 was a
challenging year for the overseas operations of the group. Most of the
international markets where the Company operates continued to be impacted by
difficult market conditions. The political turmoil in Egypt and Bahrain
continued and impacted demand. Bangladesh was impacted by sharp currency
depreciation and a liquidity crunch in the market that has pushed up interest
rates.
The focus in the
international operations of the group during the year was on strengthening
position in the market place through initiatives to improve customer
centricity, increasing the number of dealer tinting systems, introduction of
new products, expanding the dealer
network, increasing exports, focus on protective and industrial coatings
segments and improving service level to minimize loss of sale due to stock
outs. All these steps coupled with tight control on expenses and capital
employed have helped the international operations of the group perform
satisfactorily despite difficult market conditions. Sharp focus was accorded to
further enhance safety standards in all subsidiaries. During the year, the
subsidiaries in UAE and Trinidad were certified for ISO 14001.
The revenue from
paint sales of the overseas operations of the group for the year is Rs.
11386.000 Millions as compared to Rs. 9745.000 Millions during the previous
year. Material prices during the year saw an inflationary trend and
profitability was impacted due to inability to take price increases
commensurate with increase in material prices. The impact of inflation was
mitigated to some extent by formulation re-engineering, economies of scale in
purchasing and reducing losses in manufacturing.
Profit after tax
for the overseas operations of the group during the year is Rs. 723.000
Millions as compared to Rs. 879.000 Millions during the previous year. During
the year, Asian Paints International Limited, Mauritius, a 100% subsidiary of
the Company, declared its maiden dividend. The dividend received during the
year amounts to US$ 3.4 million (equivalent to Rs. 158.000 Millions) and
royalty received during the year from overseas subsidiaries amounts to Rs.
152.000 Millions. The revenue from paint sales of Berger International Limited,
a subsidiary listed on the Singapore Stock Exchange has decreased by 1% to S$
107 million (equivalent to Rs. 4130.000 Millions).
CARIBBEAN REGION:
During the year,
the revenue from paint sales has increased by 9.5% to Rs. 1718.000 Millions
from Rs. 1568.000 Millions. Adjusted for exchange rate impact, the revenue from
paint sales has increased by 3.7%. PBIT (profit before interest and tax) for
the region is Rs. 76.000 Millions for the year. Continuing economic slowdown in
all the Caribbean economies, coupled with state of emergency declared in
Jamaica and Trinidad impacted demand. All the subsidiaries in the region have
earned profit after tax.
MIDDLE EAST
REGION:
During the year,
the revenue from paint sales has increased by 12.1% to Rs. 5784.000 Millions from
Rs. 5159.000 Millions. Adjusted for exchange rate impact, the revenue from
paint sales has increased by 8.9%. PBIT for the region is Rs. 615.000 Millions
for the year.
The Middle East
region is the largest operating region for the group outside India. The region
now contributes 50% of the revenue from overseas operations. Demand conditions
in all economies continued to be challenging, particularly in UAE. Political
turmoil in Bahrain and Egypt has further impacted the business environment in
these countries. Except UAE, all the other subsidiaries in the region have
earned profit after tax.
ASIA REGION:
During the year,
revenue from paint sales has increased by 31.0% to Rs. 3147.000 Millions from
Rs. 2403.000 Millions. Adjusted for exchange rate impact, the revenue from
paint sales has increased by 28.0%. The PBIT for the region is Rs. 246.000
Millions for the year.
Bangladesh has
received environmental clearance for increasing its plant manufacturing
capacity to 24000 KL per annum. The expansion is expected to be completed in FY
2013-14. In Nepal, capacity expansion to 20000 KL per annum is under way. This
is expected to be completed in FY 2012-13. In the region, Nepal and Sri Lanka
have earned profit after tax and Singapore and Bangladesh have reported a loss.
SOUTH PACIFIC REGION:
During the year,
revenue from paint sales has increased by 20.9% to Rs. 906.000 Millions from
Rs. 750.000 Millions. Adjusted for exchange rate impact, the revenue from paint
sales has increased by 7.3%. The PBIT for the region is Rs. 122.000 Millions
for the year. All the subsidiaries in the region have made profit.
INDUSTRIAL COATINGS:
AUTOMOTIVE
COATINGS: ASIAN PPG INDUSTRIES LIMITED (APPG):
APPG, the 50:50
Joint Venture (JV) with PPG Industries Inc., was formed in the year 1997, for
manufacturing Automotive, OEM, Refinish and certain other Industrial Coatings.
APPG is the second largest automotive coatings
supplier in the
country. The passenger vehicle segment registered a mere 4.7% growth during FY
2011-12, in sharp contrast with 26.7% growth in builds witnessed in FY 2010-11.
Rising fuel prices and a series of interest rate hikes drove up the price of
ownership, slashing demand. However, most OEMs posted decent growth in the last
quarter of the year aided by strong pre-budget demand from customers.
The year also saw
high inflation which put cost pressures on the Industry and the Company. The
Company has taken series of internal measures to improve operational efficiencies
and minimize the impact on margins due to input price pressures. In the Auto
Refinish business, the Company was able to pass on the cost increases to a
certain extent. However, in the Auto OEM business, passing on the cost impact
continued to be a challenge. This has impacted the bottom line growth for the
Company during the year.
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 expansion at the Sriperumbudur plant was
embarked upon during the year. This will be helpful in catering to future
customer demands. Total revenue from operations increased to Rs. 6591.000
Millions from Rs. 5695.000 Millions in the previous year with a growth of
15.7%. The profit after tax dropped to Rs. 262.000 Millions from Rs. 329.000
Millions.
The consolidated
revenue from operations was Rs. 6873.000 Millions and the profit after tax was
Rs. 268.000 Millions. Despite the long term positive growth prospects in the
Indian economy, the year ahead appears challenging due to the challenging
market conditions, increased competition, volatile foreign exchange, high
interest rates, inflation and rising crude oil prices.
NON-AUTO
INDUSTRIAL COATINGS:
PARTNERSHIP WITH
PPG:
The Company had
initiated the process of forming a second 50:50 Joint Venture with PPG
Industries Inc., USA (PPG) last year to further the long standing and successful
relationship with PPG. As announced earlier, this JV will aggressively promote
the industrial coatings and powder coatings products (earlier serviced by the
Company through its Growth Business unit and its 100% subsidiary Asian Paints
Industrial Coatings Limited (APICL)) in India. It will leverage the significant
expertise, market presence, and channel access of the Company in the domestic
market with the considerable global scale and technology of PPG. The Company
will be responsible for day to day management of this new JV.
As a first step to
the JV formation, a new Company named AP Coatings Limited (100% subsidiary of
the Company) was formed to carry on the Non-Auto Industrial business including
Powder Coatings business of the Company. The second 50:50 JV, Asian Paints PPG
Limited (APPL) was also established during the year with PPG. As a part of the
arrangement, AP Coatings along with an Indian subsidiary of PPG would merge
into APPG and thereafter, certain businesses from APPG would demerge into APPL.
The Composite
Scheme for Merger and Demerger under Sections 391 – 394 of the Companies Act,
1956 and other applicable provisions was filed with the Hon’ble High Court of
Judicature of Bombay and Hon’ble High Court of Judicature of Madras in September
2011 for the arrangement. During the year, PPG Industries, Inc., USA decided to
restructure its operations in India prior to the proposed merger/demerger due
to which the petitions filed in the Hon’ble High Court of Judicature of Bombay
and Madras have been withdrawn. A revised Composite Scheme for Merger and
Demerger encompassing all businesses of companies, as originally envisaged, has
been filed with the Hon’ble High Court of Judicature of Bombay in February,
2012. The amalgamation process is currently in progress and the regulatory
clearance for this new structure for Industrial operations is likely to be
obtained by the second quarter of FY 2012-13.
As a part of the
JV arrangement, Industrial paint Plant at Taloja and APICL’s two powder coating
plants at Sarigam and Baddi will continue to be a part of the Company and APICL
respectively and will not form a part of the new JV. The JV’s requirements will
continue to be produced by these industrial plants under a tolling arrangement.
APPG, the existing 50:50 JV in the area of automotive coatings, will now
additionally cover marine coatings, consumer packaging coatings and other
liquid industrial coatings segments. PPG will be responsible for day to day
management of this JV.
AP COATINGS
LIMITED:
As mentioned
earlier, AP Coatings Limited (100% owned subsidiary of the Company) was formed
to carry on the industrial business of the Company as well as the business of
APICL till the formation of the new JV.
The major product
segments handled by AP Coatings Limited includes:
·
Protective
Coatings
·
General
Industrial Coatings
·
Road
Marking Coatings
·
Floor
Coatings
·
Powder
Coatings
Overall, the
demand position in industrial coatings continued to be relatively weak. High
borrowing costs and poor liquidity in the market also contributed to a slow
down in the industrial projects business. The Company focused on the high-end
Protective Coatings business, resulting in a substantial improvement in the
product mix and weighted average selling prices. Raw Material prices increased
significantly in the first half of the year, with the average overall inflation
in material costs at around 20% for the financial year. The Powder Coatings and
Road Marking Coatings businesses were significantly affected by the weakening
rupee in the last two quarters, as a large proportion of the raw materials in
these businesses are imported. Inflation coupled with relatively weak demand
conditions, intense competition, and inability to pass on price increases,
affected margins adversely.
The two Powder
Coatings’ manufacturing facilities located at Sarigam in Gujarat and Baddi in
Himachal Pradesh, and the Industrial Liquid Paints’ plant at Taloja in
Maharashtra, operated satisfactorily in meeting market requirements. The year
ahead looks challenging, with no respite expected in the increasing input
costs. Both crude prices and the exchange rate will play a significant role in
determining the input costs. However, since cost of credit is expected to come
down in future, demand conditions are likely to improve.
OTHERS:
The Company’s two
chemicals businesses, Phthalic Anhydride, manufactured at Ankleshwar, Gujarat,
and Pentaerythritol, manufactured at Cuddalore, Tamil Nadu, were set up as
backward integration initiatives in the late
eighties,
primarily to cater to the in-house demand for these chemicals.
During FY 2011-12,
60% of Phthalic Anhydride produced was transferred for internal consumption.
The plant operations were stable and the plant achieved the highest ever
production volumes during the year. Rising raw material costs pushed Phthalic
Anhydride prices to high levels. Safe guard duty at the rate of 10% on imports
from all countries was imposed from January 2012. Profits from the Phthalic
Anhydride business were in line with expectations.
52% of the
Pentaerythritol produced by the Company during FY 2011-12 was transferred for
internal consumption. Prices of key raw materials moved up during the year,
resulting in an increase in material costs.
Their Company was able to obtain price increases from customers, albeit,
with a delay. Production at plant and profits from the business were in line
with expectations.
INFORMATION
TECHNOLOGY:
There are four
mega trends in the Information Technology (IT) world, shaping the way information
is getting generated and consumed today. These trends are Mobility, Social,
Cloud Computing and Consumerization of IT. During FY 2011-12, the Company has
explored the impact of these trends and its relevance for the Company and
deployed innovative applications around these mega-trends. A third generation
cutting edge mobile application for the front line sales force of the Company
was developed which will allow the territory officers to manage the dealer
network efficiently by providing a 360 degree view of dealers. As this report
goes to print, the application and associated devices are being rolled out pan
India. Going forward the other customer facing roles of the Company are also
planned to be mobile enabled.
The relevance of
managing online reputation has gained immense significance in today’s world.
The Company has already established its presence on popular social media
platforms like Facebook and Twitter. To enable structured management of the
Company’s online reputation, a social sentiment analytics tool was proto-typed
and developed during FY 2011-12 , which can ‘listen’ to opinions expressed by
various consumers about the Company and channel it to the Customer Relationship
Management Systems. The three year roadmap that was drawn in FY 2009-10 in the
area of Information Management is well underway. The Business Intelligence
initiative that was started in early April 2011 has largely achieved its
objective of providing a warehouse of information which managers can use to
gain valuable insights to manage key performance indicators at work. This is
expected to improve the decision making capability of the managerial cadres
significantly. With this framework the Company is poised to leverage the
technology trends in the area of in-memory analytics to provide even further
insights into market trends and consumer behavior.
To improve the
overall resiliency of the IT systems, a three pronged approach has been adopted
to improve information security of various enterprise systems to global
standards, deploy tools for IT disaster recovery as well as tools that aid in
overall IT operations, management and governance. The Company is also
partnering with leading IT vendors to build innovative applications that
exploit the nexus of mobility, cloud and consumerization of IT. These will be
deployed to solve complex business problems in the coming years.
OUTLOOK:
In spite of all
the inherent risks in the macro environment today, the outlook for FY 2012-13
is full of opportunities.
FY 2012-13 marks
the beginning of the first year of the twelfth five year plan of the government
of India, which aims at faster, sustainable and inclusive growth. One of the
objectives identified for the same is focus on domestic demand driven growth
recovery. Aided by a young demographic profile, India is regarded as one of the
youngest economies in the world with considerable opportunities as a consumer
market and manufacturing hub. The government has also recognized, as emphasized
by the finance minister in his budget speech, that there is a need to
accelerate the pace of reforms and improve supply side management of the
economy. The GDP growth outlook at 7.6% for FY 2012-13 is significantly higher
than the GDP growth registered in FY 2011-12, showing signs of optimism. The
prospects and future of the Indian economy are bright and being an integral
part of this economy the Company has always been committed to strong and
sustained value creation. The Company continues to participate in accelerating
economic growth and giving customers and stakeholders the benefits of the
technology and the values which have been its driving force.
FIXED ASSETS:
- Buildings
- Plant and Machinery
- Scientific Research:
o Equipment
o Buildings
- Furniture and Office Equipment
- Vehicles
- Leased Assets: Equipment
- Trademark
- Software
AUDITED FINANCIAL RESULTS
FOR THE QUARTER ENDED 30TH JUNE, 2012
Rs. in Millions
|
Particular |
30.06.2012 [Audited] |
|
|
|
|
Income from operations |
|
|
Net Sales/Income from operations (Net of excise duty) |
20458.800 |
|
Other operating income |
99.700 |
|
Total income from operations (net) |
20558.500 |
|
|
|
|
Expenses |
|
|
Cost of materials consumed |
13131.200 |
|
Purchases of stock-in-trade |
407.600 |
|
Changes in
inventories of finished goods, work-in-progress and stock-in-trade |
(1917.600) |
|
Employee benefits expense |
1043.700 |
|
Depreciation and amortization expense |
273.500 |
|
Other expenses |
3846.700 |
|
Total expenses |
16785.100 |
|
|
|
|
Profit from
operations before other income and finance costs |
3773.400 |
|
Other income |
252.200 |
|
Profit from ordinary activities before finance costs |
4025.600 |
|
Finance costs |
77.700 |
|
Profit from ordinary activities before tax |
3947.900 |
|
Tax expense |
1202.000 |
|
Net Profit from ordinary activities after tax |
2745.900 |
|
Paid-up equity share capital (Face value of Rs.10 per share) |
959.200 |
|
Reserves excluding
Revaluation Reserves as at Balance Sheet date |
-- |
|
Basic and diluted Earnings Per Share (EPS) (Rs.) (not annualised) |
28.63 |
|
|
|
|
Public
Shareholding |
|
|
Number of shares |
45283100 |
|
Percentage of shareholding |
47.21 |
|
|
|
|
Promoters and Promoter Group Shareholding |
|
|
a) Pledged / Encumbered |
|
|
Number of shares |
9503002 |
|
Percentage of
shares (as a % of the total shareholding of promoter and promoter group) |
18.77 |
|
Percentage of shares
(as a % of the total share capital of the company) |
9.91 |
|
|
|
|
b) Non-encumbered |
|
|
Number of shares |
41133677 |
|
Percentage of
shares (as a % of the total shareholding of promoter and promoter group) |
81.23 |
|
Percentage of shares
(as a % of the total share capital of the company) |
42.88 |
|
Investor
Complaints |
As on 30.06.2012 |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
3 |
|
Disposed of during the quarter |
3 |
|
Remaining unresolved at the end of the
quarter |
Nil |
SEGMENT REPORTING
Rs. in Millions
|
Sl. No. |
Particulars |
Quarter Ended |
|
30.06.2012 |
||
|
(Audited) |
||
|
1 |
Segment Revenue |
|
|
|
|
|
|
|
a. Paints |
20350.200 |
|
|
b. Others |
723.000 |
|
|
|
|
|
|
Total |
21073.200 |
|
|
|
|
|
|
Less : Inter Segment Revenue |
425.500 |
|
|
|
|
|
|
Net Sales / Income
from Operation |
20647.700 |
|
|
|
|
|
2 |
Segment Results (Profit / (Loss) before Tax & Interest from each Segment) |
|
|
|
|
|
|
|
a. Paints |
4151.800 |
|
|
b. Others |
73.400 |
|
|
|
|
|
|
Total |
4225.200 |
|
|
|
|
|
|
Less :Interest |
77.700 |
|
|
Less : Unallocable Expenses Net of Unallocable Income |
199.600 |
|
|
|
|
|
|
Total Profit Before
Tax |
3947.900 |
|
|
|
|
|
3 |
Capital Employed |
|
|
|
|
|
|
|
a. Paints |
21613.400 |
|
|
b. Others |
476.600 |
|
|
c. Unallocable Assets less Liabilities |
5533.700 |
|
|
|
|
|
|
Total |
27623.700 |
|
|
NOTE: Other includes company’s business units
manufacturing Phthalic Anhydride and Pentaerythritol. |
|
NOTES:
1. The above
results were reviewed by the Audit Committee on 19th July, 2012 and approved by
the Board of Directors at their meeting held on 20th July, 2012.
2. A final
dividend of Rs. 30.50 per equity share of the face value of 10 each for the
financial year 2011-2012 was approved by the shareholders at the Annual General
Meeting held on 25th June, 2012 and the same was paid on 26th June, 2012.
3. The net working
capital of the Company's industrial business was transferred to AP Coatings
Limited (a wholly owned subsidiary of the Company) on 1st June, 2011 and the
financials of the Company for the quarter ended 30th June, 2011 included the
results of industrial business for the period 1st April, 2011 to 31st May,
2011. Net sales pertaining to industrial business for the period from 1st
April, 2011 to 31st May, 2011 amounted to Rs.739.500 Millions (includes
Rs.403.200 Millions of inventory sold to AP Coatings ) and profit after tax for
the same period amounted to Rs.2.800 Millions. Hence, the financials for the
quarter ended 30th June, 2012 are not comparable with the financials of the
quarter ended 30th June, 2011.
4. The capacity
expansion from 1,50,000 KL per annum to 2,00,000 KL per annum at the Company's plant
at Rohtak, Haryana was commissioned during the quarter ended 30th June, 2012.
PRESS RELEASES:
ASIAN PAINTS CONSOLIDATED NET SALES UP BY 12.5 %
Mumbai, July 20,
2012: Asian Paints today announced its financial results for the first quarter
ended June 30, 2012.
"The Decorative paints business in India did well considering the
challenging macro environment. We are witnessing downward trend in cost of raw
materials but Depreciation of Rupee remain a concern area" said K.B.S.
Anand, Managing Director and CEO, Asian Paints Limited.
"The Auto and other Industrial business saw some pressure due to
subdued demand. Political events and macro economic uncertainty in some
countries continue to affect international performance.” he added.
Consolidated Results:
Q1-FY’13: For the quarter ended June 30, 2012, on consolidation of accounts of the
subsidiaries and joint venture of Asian Paints – Net Profit of the Group has
increased by 9.4 % to Rs. 2884.000 Millions from Rs. 2637.000 Millions over the
previous corresponding quarter. Income from operations has risen by 12.5 % to
Rs. 25479.000 Millions from Rs. 22656.000 Millions. PBDIT for the group has
increased by 12.5 % to Rs. 4466.000 Millions from Rs. 3971.000 Millions. Profit
before Tax has increased by 10.2 % to Rs. 4262.000 Millions from Rs. 3868.000
Millions.
Standalone
Results: Q1-FY’13: For the quarter ended June 30, 2012, Net Profit on
a standalone basis increased by 9.7 % to Rs. 2746.000 Millions from Rs.
2504.000 Millions. Income from operations increased by 6.7 % to Rs. 20559.000
Millions from Rs. 19265.000 Millions. PBDIT for the quarter increased by 12.2 %
to Rs. 4047.000 Millions from Rs. 3608.000 Millions. Profit before tax has
increased by 9.9% to Rs. 3948.000 Millions from Rs. 3592.000 Millions.
About Asian Paints
Limited:
Asian Paints is India’s largest paint company and ranked among the top
ten Decorative coatings companies in the world with a turnover of Rs. 96.32 billion. Asian Paints along with its
subsidiaries have operations in 17 countries across the world with 24 paint
manufacturing facilities, servicing consumers in 65 countries through Berger
International, SCIB Paints – Egypt, Asian Paints, Apco Coatings and Taubmans.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.52 |
|
|
1 |
Rs.88.85 |
|
Euro |
1 |
Rs.70.85 |
INFORMATION DETAILS
|
Report Prepared
by : |
TPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
75 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.