PMIRA INFORM REPORT
|
Report Date : |
08.10.2013 |
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 - 400013, Maharashtra |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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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 |
|
|
|
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CIN No.: [Company Identification
No.] |
L24202MH1920PLC000825 |
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|
|
|
TAN No.: [Tax Deduction & Collection
Account No.] |
MUMG00234D |
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|
|
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PAN No.: [Permanent Account No.] |
AAACG1376N |
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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
: |
2456 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (85) |
|
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 54130000 |
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|
|
|
Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an old and well established company having an excellent track record. The financial performance of the company is excellent and the networth has also been growing over the year. Profits also show an increasing trend. Trade relations are reported as fair. Business is active. Payment terms are regular. The company can be considered for business dealings on safe and secured 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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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
We are living in a
world where volatility and uncertainty have become the New Normal. We saw
a change of government in countries like Tunisia, Egypt, Libya and Vietnam.
Once powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in existence.
Kodak, the inventor of the digital camera had to wind up its operations, HMV,
the British entertainment retailing company and Borders, once the second
largest bookstore have shut down due to their inability to evolve their
business models with the changing time. Readers’ Digest, Thomson Register are
no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and
the US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years
respectively. By 2020, emerging Asia will become the world’s largest consuming
block, overtaking North America.
The years after the
outbreak of the global financial crisis, the world economy continues to remain
fragile. The Indian economy demonstrated remarkable resilience in the initial years
of the contagion but finally lost ground last year. GDP growth slowed down.
Currency has been weakening. There is a marked deceleration in agriculture,
industry and services. Dampening sentiment led to a cut-back in investment as
well as private consumption expenditure. Inflation remained at high
levels fuelled by the pressure from the food and fuel sectors. The large fiscal
and current account deficit s continued to cause grave concern. It is
imperative that India regains its growth trajectory of 8-9 % sooner than later.
This is crucially important given the need to create gainful livelihood
opportunities for the millions living in poverty as also the large contingent
of young people joining the job market every year.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
AAA (Long Term Rating) |
|
Rating Explanation |
Having highest degree of safety regarding timely servicing of financial obligation. It carry low credit risk. |
|
Date |
August 13, 2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
A1+ (Commercial Paper) |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
August 13, 2013 |
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.
INFORMATION DENIED BY
|
Name : |
Mr. Prayag Yadav |
|
Designation : |
Account Executive |
|
Contact No.: |
91-22-24992779 |
|
Date : |
08.10.2013 |
LOCATIONS
|
Registered Office : |
Nerolac House, Ganpatrao Kadam Marg, Lower Parel, Mumbai - 400 013, Maharashtra, India |
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Tel. No.: |
91-22-24934001/ 24992500/ 4992585 |
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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 : |
B1 , B2, Jainpur Industrial Estate, Kanpur Dehat, Kanpur, Uttar Pradesh, India |
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Factory 2 : |
F/2, MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, India |
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Factory 3 : |
Bibi Talav Vatva, Ahmadabad, Gujarat, India |
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Factory 4 : |
142, Tiruporur Road, Perungudi, Chennai, Tamilnadu, India |
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Factory 5 : |
36, Sector-7, HSIDC IGS, Bawal, District Rewari, Haryana, India |
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Sales Depot : |
B-19, Meerut Road, Industrial Area, Meerut Road, Ghaziabad - 201 003, Uttar Pradesh, India |
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Branch Office : |
Located at:
|
DIRECTORS
As on: 31.03.2013
|
Name : |
Dr. Jamshed Jiji Irani |
|
Designation : |
Chairman |
|
Address : |
221, A-Wing, NCPA Apartment, Nariman Point, Mumbai - 400 021, Maharashtra, India |
|
Date of Birth/Age : |
02.06.1936 |
|
Date of Appointment : |
29.10.2002 |
|
|
|
|
Name : |
Mr. Devendra Motilal Kothari |
|
Designation : |
Vice Chairman |
|
Address : |
8-4,
Seaface Park Co-Operative Housing Society, Bhulabhai Desai Road, Mumbai
- 400 026, Maharashtra, India |
|
Date of Birth/Age : |
30.03.1930 |
|
Date of Appointment : |
01.04.1973 |
|
|
|
|
Name : |
Mr. Harishchandra M. Bharuka |
|
Designation : |
Managing Director |
|
Address : |
A-ll, Twin Towers Premises Co-Operative Housing Society Limited, Off V S Marg, Mumbai - 400 025, Maharashtra, India |
|
Date of Birth/Age : |
22.06.1960 |
|
Date of Appointment : |
01.04.1999 |
|
|
|
|
Name : |
Mr. Hiroshi Ishino |
|
Designation : |
Director |
|
Address : |
3-14-15,
Ml Nani Meguro-HU, Tokyo, Japan |
|
Date of Birth/Age : |
10.04.1951 |
|
Date of Appointment : |
19.01.2005 |
|
|
|
|
Name : |
Mr.
Pradip P. Shah |
|
Designation : |
Director |
|
Address : |
72-A,
Embassy Apartment, 7th Floor, 46 Nepeansea Road, Mumbai - 400 036, Maharashtra,
India |
|
Date of Birth/Age : |
07.01.1953 |
|
Date of Appointment : |
30.01.2007 |
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|
|
|
Name : |
Mr. Noel Naval Tata |
|
Designation : |
Director |
|
Address : |
Windmere
- 55, Cuffe Parade, Mumbai - 400 005, Maharashtra, India |
|
Date of Birth/Age : |
12.11.1956 |
|
Date of Appointment : |
27.10.2007 |
|
|
|
|
Name : |
Mr. Pravin D. Chaudhari |
|
Designation : |
Whole Time Director |
|
Address : |
12,
Juhu Goldmist, JUPD Scheme, Mumbai -400 049, Maharashtra, India |
|
Date of Birth/Age : |
17.05.1968 |
|
Date of Appointment : |
30.04.2008 |
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|
|
|
Name : |
Mr. Yoshikazu Takahashi |
|
Designation : |
Director |
|
Address : |
7-Chome
6-1-4, Okamoto Higashinada - KU, Kobe, Hyogo, Japan |
|
Date of Birth/Age : |
11.01.1953 |
|
Date of Appointment : |
26.03.2010 |
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|
|
|
Name : |
Mr. Hitoshi Nishibayashi |
|
Designation : |
Director |
|
Address : |
7-Chome
6-1-4, Okamoto Higashinada - KU, Kobe, Hyogo 6580072, Japan |
|
Date of Birth/Age : |
31.05.1963 |
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Date of Appointment : |
30.07.2010 |
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|
|
|
Name : |
M. Tanaka |
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Designation : |
Director |
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 |
|
|
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|
Name : |
Mr. Prayag Yadav |
|
Designation : |
Account Executive |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 30.06.2013
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
|
|
|
|
37329760 |
69.27 |
|
|
37329760 |
69.27 |
|
Total shareholding of Promoter and Promoter Group (A) |
37329760 |
69.27 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
954208 |
1.77 |
|
|
3604 |
0.01 |
|
|
1781023 |
3.30 |
|
|
5933715 |
11.01 |
|
|
8672550 |
16.09 |
|
|
|
|
|
|
3402400 |
6.31 |
|
|
|
|
|
|
3530707 |
6.55 |
|
|
855389 |
1.59 |
|
|
101166 |
0.19 |
|
|
62428 |
0.12 |
|
|
5350 |
0.01 |
|
|
33388 |
0.06 |
|
|
7889662 |
14.64 |
|
Total Public shareholding (B) |
16562212 |
30.73 |
|
Total (A)+(B) |
53891972 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
53891972 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of Paints, Varnishes and Enamels,
Oils and Synthetic Resins. |
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|
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Products : |
|
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 : |
2456 (Approximately) |
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Bankers : |
|
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Facilities : |
(Rs.
In Millions)
|
||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
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|
Auditors : |
|
|
Name : |
BSR and Company Chartered Accountants |
|
Address : |
Mumbai, |
|
|
|
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Solicitors : |
|
|
Name : |
Kanga and Company |
|
Address : |
Mumbai, |
|
|
|
|
Holding Company : |
Kansai Paints Nepal Private Limited (w.e.f. 01.10.2012) |
|
|
|
|
Fellow Subsidiary : |
|
CAPITAL STRUCTURE
As on: 31.03.2013
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 |
|
|
|
|
|
Details of Shareholders
holding more than 5% of shares:
|
|
% |
No. of Shares |
|
Holding Company: |
|
|
|
Kansai Paint Company Limited, Japan |
69.27 |
37329760 |
|
Others: |
|
|
|
ICICI Prudential Life Insurance Company Limited |
— |
— |
|
Aberdeen Asset Management Asia Limited |
7.25 |
3905198 |
|
|
No. of Shares |
|
Aggregate number of bonus shares issued during the period of five years immediately preceding the reporting date by capitalisation of security premium reserve |
26945986 |
The Company has issued one class of shares, i.e. equity shares, which enjoys similar rights in respect of voting, payment of dividend and repayment of capital. On winding up of the company, the holders of equity shares will be entitled to receive the residual assets of the company, remaining after distribution of all preferential amounts in proportionate number of equity shares held.
Reconciliation of the
number of shares outstanding at the beginning and at the end of the reporting
period:
|
|
No. of Shares |
|
Number of shares at the beginning of the year |
53891972 |
|
Issued during the year |
— |
|
Number of shares at the end of the year |
53891972 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
|
31.03.2013 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
|
538.920 |
|
(b) Reserves & Surplus |
|
|
12320.880 |
|
(c) Money
received against share warrants |
|
|
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
|
|
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
|
|
12859.800 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a)
long-term borrowings |
|
|
604.850 |
|
(b) Deferred
tax liabilities (Net) |
|
|
430.630 |
|
(c) Other long term liabilities |
|
|
0.000 |
|
(d) long-term provisions |
|
|
385.240 |
|
Total Non-current Liabilities (3) |
|
|
1420.720 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term
borrowings |
|
|
0.000 |
|
(b) Trade payables |
|
|
3893.420 |
|
(c) Other current
liabilities |
|
|
1648.290 |
|
(d) Short-term provisions |
|
|
800.040 |
|
Total Current Liabilities (4) |
|
|
6341.750 |
|
|
|
|
|
|
TOTAL |
|
|
20622.270 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
|
7725.690 |
|
(ii) Intangible Assets |
|
|
19.040 |
|
(iii) Capital
work-in-progress |
|
|
1234.900 |
|
(iv) Intangible assets under
development |
|
|
0.000 |
|
(b)
Non-current Investments |
|
|
480.980 |
|
(c) Deferred
tax assets (net) |
|
|
0.000 |
|
(d) Long-term Loan and Advances |
|
|
442.350 |
|
(e) Other Non-current assets |
|
|
0.000 |
|
Total Non-Current Assets |
|
|
9902.960 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
|
125.040 |
|
(b) Inventories |
|
|
5340.730 |
|
(c) Trade receivables |
|
|
4199.890 |
|
(d) Cash and cash
equivalents |
|
|
600.660 |
|
(e) Short-term loans
and advances |
|
|
192.980 |
|
(f) Other current
assets |
|
|
260.010 |
|
Total Current Assets |
|
|
10719.310 |
|
|
|
|
|
|
TOTAL |
|
|
20622.270 |
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2012 |
31.03.2011 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
538.920 |
538.920 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
10092.620 |
8622.750 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
10631.540 |
9161.670 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
29.630 |
81.141 |
|
|
2] Unsecured Loans |
|
660.130 |
743.699 |
|
|
TOTAL BORROWING |
|
689.760 |
824.840 |
|
|
DEFERRED TAX LIABILITIES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
11321.300 |
9986.510 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
3963.230 |
2782.073 |
|
|
Capital work-in-progress |
|
1614.870 |
751.647 |
|
|
Advance for capital expenditure |
|
0.000 |
284.099 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
1835.050 |
3718.228 |
|
|
DEFERRED TAX ASSETS |
|
102.210 |
134.130 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
4537.100
|
3541.025
|
|
|
Sundry Debtors |
|
3588.340
|
2602.599
|
|
|
Cash & Bank Balances |
|
591.770
|
396.906
|
|
|
Other Current Assets |
|
183.930
|
0.000
|
|
|
Loans & Advances |
|
564.700
|
502.315
|
|
Total
Current Assets |
|
9465.840
|
7042.845 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
3542.370
|
3512.502
|
|
|
Other Current Liabilities |
|
953.720
|
122.935
|
|
|
Provisions |
|
1163.810
|
1091.075
|
|
Total
Current Liabilities |
|
5659.900
|
4726.512 |
|
|
Net Current Assets |
|
3805.940
|
2316.333
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
11321.300 |
9986.510 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
28566.190 |
26005.720 |
21387.302 |
|
|
|
Other Income |
163.170 |
242.660 |
234.609 |
|
|
|
TOTAL (A) |
28729.360 |
26248.380 |
21621.911 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
18985.740 |
16968.980 |
14002.453 |
|
|
|
Purchases of Stock-in-Trade |
1022.830 |
917.500 |
-- |
|
|
|
Employee Benefits Expense |
1181.430 |
1069.440 |
916.420 |
|
|
|
Other Expenses |
4597.610 |
4159.140 |
3563.404 |
|
|
|
Changes in Inventories |
(582.400) |
(482.350) |
-- |
|
|
|
Profit on |
-- |
-- |
(253.665) |
|
|
|
Reversal of excess depreciation in respect of earlier years |
(1149.250) |
-- |
-- |
|
|
|
TOTAL (B) |
24055.960 |
22632.710 |
18228.612 |
|
|
|
|
|
|
|
|
Less |
PROFIT BEFORE
INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4673.400 |
3615.670 |
3393.299 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
0.160 |
0.860 |
8.428 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
4673.240 |
3614.810 |
3384.871 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
471.070 |
563.530 |
493.548 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
4202.170 |
3051.280 |
2891.323 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1280.350 |
892.430 |
831.478 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
2921.820 |
2158.850 |
2059.845 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
6213.570 |
4959.587 |
3732.073 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
592.810 |
592.810 |
538.920 |
|
|
|
Tax on Proposed Dividend |
100.750 |
96.170 |
87.426 |
|
|
|
Transfer to General Reserve |
292.180 |
215.890 |
205.985 |
|
|
BALANCE CARRIED
TO THE B/S |
8149.650 |
6213.570 |
4959.587 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
5.940 |
11.050 |
6.441 |
|
|
|
Recovery of Freight, Insurance and Other Charges on Exports |
0.250 |
0.560 |
0.295 |
|
|
TOTAL EARNINGS |
6.190 |
11.610 |
6.736 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
4914.890 |
4757.560 |
3526.492 |
|
|
|
Components and Spare Parts |
11.940 |
9.820 |
19.432 |
|
|
|
Finished Products |
249.590 |
285.970 |
206.176 |
|
|
|
Capital Goods |
108.030 |
69.060 |
13.090 |
|
|
TOTAL IMPORTS |
5284.450 |
5122.410 |
3765.190 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
39.80 |
40.06 |
38.22 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2013 1st Quarter |
|
|
|
|
UnAudited |
|
Net Sales |
|
|
7919.000 |
|
Total Expenditure |
|
|
6905.000 |
|
PBIDT (Excl OI) |
|
|
1014.000 |
|
Other Income |
|
|
37.000 |
|
Operating Profit |
|
|
1051.000 |
|
Interest |
|
|
0.000 |
|
Exceptional Items |
|
|
0.000 |
|
PBDT |
|
|
1051.000 |
|
Depreciation |
|
|
153.000 |
|
Profit Before Tax |
|
|
898.000 |
|
Tax |
|
|
289.000 |
|
Provisions and contingencies |
|
|
0.000 |
|
Profit After Tax |
|
|
609.000 |
|
Extraordinary Items |
|
|
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
609.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
10.17 |
8.22 |
9.53 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
14.71 |
11.73 |
13.52 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
22.23 |
22.72 |
29.43 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.33 |
0.29 |
0.32 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.05 |
0.06 |
0.09 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.69 |
1.67 |
1.49 |
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 |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
UNSECURED LOAN
(Rs.
In Millions)
|
Particular |
As on 31.03.2013 |
As on 31.03.2012 |
|
Unsecured Sales Tax Deferral Loan |
595.850 |
660.130 |
|
|
|
|
|
Total |
595.850 |
660.130 |
Notes:
Package Scheme of Incentive allowed the Company to accumulate the sales tax collected from its customers in respect of goods produced at Lote factory. Sales tax collected each year is repayable in five equal yearly installments after ten years from the year of collection. Outstanding amount is repayable in eight annual installments from the reporting date.
Sales Tax Deferral Loan is interest-free. [Current maturity of Sales Tax Deferral Loan of Rs. 64.280 Millions (2011-2012 Rs. 45.750 Millions) is disclosed under ‘Other Current Liabilities’
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
90188781 |
25/08/1999 |
57,500,000.00 |
PUNJAB NATIONAL BANK |
OM SHIVA E NUMH, BOMBAY, MAHARASHTRA - 400018, INDIA |
- |
|
2 |
90188733 |
30/06/1998 |
15,000,000.00 |
PUNJAB NATIONAL BANK |
P N B HOUSE, SIR P M ROAD, BOMBAY, MAHARASHTRA - |
- |
|
3 |
90187681 |
29/06/1995 |
57,500,000.00 |
STANDARD CHARTERED BANK |
23-25 MAHATMA GANDHI ROAD, BOMBAY, MAHARASHTRA - 400001, INDIA |
- |
|
4 |
90188454 |
17/08/1993 * |
7,500,000.00 |
BANK OF TOKYO LTD |
JEEVAN PRAKASH, SIR P M ROAD, BOMBAY, MAHARASHTRA - 400001, INDIA |
- |
|
5 |
90185790 |
05/02/1992 |
40,000,000.00 |
INDUSTRIAL DEVELOPMENT BANK OF INDIA |
IDBI TOWER, CUFFE PARADE, BOMBAY, MAHARASHTRA - 400005, INDIA |
- |
|
6 |
90185086 |
08/07/1986 |
3,400,000.00 |
STANDARD CHARTERED BANK |
23-25 MAHATMA GANDHI ROAD, BOMBAY, MAHARASHTRA - 400001, INDIA |
- |
|
7 |
90188176 |
20/02/1985 |
2,500,000.00 |
STAWLARD CENTRAL BANK |
MAHATMA GANDHI ROAD, BOMBAY, MAHARASHTRA - 400004,INDIA |
- |
|
8 |
80064451 |
08/12/2011 * |
900,000,000.00 |
UNION BANK OF INDIA LIMITED |
UNION BANK BHAVAN, 239, VIDHAN BHAVAN MARG, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA |
B30282248 |
* Date of charge modification
MANAGEMENT DISCUSSION
AND ANALYSIS
Subject, a subsidiary of Kansai Paint, Japan, is one of India’s leading paint companies.
Subject had its beginning as Gahagan Paints and Varnishes Company Limited in the year 1920. Over the 93 years of its existence the Company has built a strong brand and has gained a reputation for high quality, innovation and differentiated product offerings. Subject vision has been to leverage global technology and serve the customers with superior coatings systems and world class solutions.
The Company has 5 manufacturing facilities situated at Lote in Maharashtra, Bawal at Haryana, Jainpur in UP, Chennai and the latest state-of-the-art plant at Hosur in Tamilnadu. The strategic geographical set up of the plants has been advantageous in providing high service levels and supply chain efficiency, thus leading to customer satisfaction.
Subject as a Company is committed to the purpose of touching and improving the lives of consumers. It does so by expanding its reach and providing consumers with greater product choices to meet evolving customer demands.
The Company’s strategic investments are in line with its purpose-inspired growth strategy to drive long-term value for customers and all stakeholders. The Company also regularly benchmarks itself across sectors and identifies numerous strategic initiatives that it should undertake. These initiatives form part of the Company’s Mission document.
The Company is a leader in the Industrial paint market. The full system supply capability in tandem with the technological advanced products introduced over the years has been instrumental in sustaining the leadership for the industrial business segment. KNPL has always launched a slew of products for customer across various market segments which are innovative and technologically superior.
The Company has always viewed IT as strategic and capable of creating competitive differentiation. Over the years it has successfully implemented a variety of IT solutions in various operational areas.
The organization has been felicitated with several awards in all functional areas of Products, Services and Governance.
INDUSTRY PROGRESS
The financial year 2012-13 has been challenging. For a greater part of the year the industry witnessed high interest rates and significant inflation in addition to uncertainty in the global scenario.
The Company has taken this operating environment as a challenge and focused on sustainable growth. While practicing caution, it has leveraged its capacity enhancements, operational controls, product innovations, customer reach and infrastructural support.
As a result, Kansai Nerolac has been able to consolidate its leadership in the industrial, automotive and powder coating business and focus on the decorative business through the unique healthy home products proposition.
As on March 2013, the industry size for paints is estimated at around Rs. 285000.000 Millions. The organized sector accounts for 79%. The Decorative paints segment accounts for around Rs. 200000.000 Millions while industrial accounts for Rs. 85000.000 Millions of the total paint market.
In the long term the paints industry is expected to grow at 12-13% which is roughly 1.5 to 2 times the GDP.
MARKETING INITIATIVES
OUTLOOK
Subject has continued its efforts to touch the homes of Indian consumers by providing ‘Healthy Home Paints’. The Company has reached out to consumers through its brand ambassador Shah Rukh Khan. The Company’s media message has been a reflection of its Healthy Home Paints theme and has included the promotion of environment friendly, low VOC and lead free products.
A series of campaigns have been initiated to showcase the wide range of products for the consumers. One of them has been “NO VOC NO GADBAD” campaign, launched to create awareness amongst masses about ‘Painting a Greener Tomorrow’. Subject has aired campaigns of Impressions Eco Clean on all leading channels. Several activities were carried out on World Environment Day on different media platforms so as to leverage their “Healthy Home and Eco Friendly” positioning.
During the year the Company launched a unique initiative ‘Paint the Change’. Paint the change is the Company’s
endeavour to create a platform to empower consumers to make the change around them, thereby helping them to invest in a greener future. Consumers can contact their nearest collection centers volunteered by the Company’s dealers who would collect unused paint from them or drop the unused paint at Company depots or showrooms.
After extensive research on the existing models a new version of NEROLAC COLOR STYLERS- NCS (Version 4) was launched this year. The key features of this version includes Touch Screen interface, discussion counter, Vastu book and all shades ranging from Plain finishes to Metallics, Disney and Ideaz with its USP.
The Company believes that it is important to reach out to the influencers as well. It has collaborated with the architects and interior decorators with initiatives likeRangashala – a new initiative to help painters learn and grow with Nerolac.
Nerolac’s endeavour to engage with the Generation Next audiences by leveraging the online space has entered a new phase with its Social Media Campaigns – Kuch Change Karein, Chalo Tune Badlein – Personalise the Nerolac Jingle and “They love all their fans” activity. The Company is now enhancing its relationship with the consumers through social networking tools like Facebook and has achieved a huge fan base in the paint industry. It is serving as a good platform for communicating all campaigns and events and getting consumer insights. Having received a great response from consumers on Nerolac’s Facebook page, Nerolac has gone ahead and established an Official YouTube Channel of Nerolac Paints, India.
Kansai Nerolac is the Market Leader in the automotive coating segment in India with a dominant market share. It has built a strong credibility by creating customer service objectives with the OEMs and monitoring the progress together. These aspects have helped to attain business of the existing customers and get access to new auto European manufacturers and others. Multiple OEM lines have been awarded to the Company for future business prospect.
Subject has grown and maintained its position in Industrial Coatings segment with a wide range of products in the Automotive, Powder, General Industrial and High performance Coatings space. The Company believes that customer relationship, profitability and operational efficiency are vital for business and continued growth. This goes hand in hand with the right mix of products, high quality and on time delivery. Subject in partnership with Kansai, Japan has been able to leverage the competitive advantage to ensure a strong market presence. The industrial marketing team has participated in a series of color and product presentations, seminars, vendor meets, customer satisfaction surveys and exhibitions. This has given brand visibility to the Company and further strengthened the Company’s presence in the industry.
This year, the Company has focused on the augmentation of auto refinish business by working on comparative market study, understanding needs of customers, product innovations and brand visibility. The Company introduced Retan PG ECO Hybrid Refinishing System in body shops in India which is Japan’s leading Auto refinishing system.
There has been similar focus on Performance Coatings business division of powders and liquids. Several marketing initiatives have been taken forward to sustain leadership status for Powder coatings. The customer requirements are well analyzed and the products developed to cater to them.
Operational
Operational risk relates to the rising crude oil prices and other raw material costs, increase in labour cost, power shortage and power costs, transportation, demand generation, environmental hazards which may hamper the business cycle. Therefore, the Company is ready with action plans to allay the risks. Efficient manufacturing, strong supply chain, high quality raw materials, timely reach to the customers, working capital management, productivity enhancement, right inventory levels, talent retention, adherence to standard operating procedures are the cutting edge to overcome the risks and face the competitive environment.
Financial
Financial risk relates to the Company’s ability to meet financial obligations and mitigate credit risk, volatility in foreign currency exchange rates and interest rates and commodity prices. They face credit risk in their businesses, but proper planning has helped Subject to maintain its position in the market.
INFORMATION
TECHNOLOGY
IT investments and initiatives have played a pivotal role in bringing business value to Subject. During the year greater emphasis was given to bring greater maturity in the usage and adoption of new IT technologies introduced in the previous years in the areas of Customer Relationship Management (CRM), Business Communication Manager (BCM), Business Intelligence and Business Objects (BI-BO), Advanced Planner and Optimizer (APO) amongst others.
The CRM initiative which was rolled out in the last year is being taken to the next level in terms making the frontline sales force equipped with key information which will ensure higher visibility and focus on servicing the customer. The Call center initiative is being leveraged upon to stay connected with their customers. New functionalities were rolled out in APO (Advanced Planner and Optimizer) for solving supply chain process challenges resulting in business benefits like cost optimization, reduction in planning time, improved optimization of production plan.
Solution Manager was implemented to gain technical excellence in various IT processes. This will also act as an interface in aligning Subject with global best practices. It will also enable Subject to take advantage of innovations in IT. In continuation of last year, various actionable dashboards were implemented covering all business domains, with the objective of providing faster and result oriented actionable MIS.
AWARDS AND RECOGNITION
AWARDS BY EXTERNAL
AGENCIES:
- Green Believer Plant Award for Subject – Bawal plant by Frost and Sullivan for FY 2011.
- “The Best innovative idea” award for barrel cleaning machine at the Manufacturing Innovation Conclave – 2012, organized by Industry 2.0 magazine.
- A “Certificate of Merit” for achieving Zero Accident Frequency Rate to Subject – Lote Plant by National Safety Council – Maharashtra Chapter.
- A merit certificate at the ICE (In-House Communication Excellence) Awards 2012, an initiative of Shailaja Nair Foundation.
- “Best HR team” Award (in the western region) at the Human Capital Awards 2012 organized by Indira Group, Pune, in association with the Centre for Change Management, Mumbai.
- KNPL was awarded for the Best business HR case study by Hindustan Times Shine HR Summit 2012.
AWARDS BY CUSTOMERS:
- Green Vendor Developer Program Award from Hero Motocorp Limited, for outstanding contribution.
- Award for Capacity Enhancement from the Maruti Suzuki India Limited for Subject contributions.
- Toyota Boshoko Automotive Limited presented “Appreciation Award” for outstanding support in terms of shorter lead time for development and supplies.
FIXED ASSETS
Tangible Assets
•
Freehold Land
•
Leasehold Land
•
Buildings
•
Plant and Equipment
•
Furniture and Fixtures
•
Vehicles
•
Office Equipment
•
Assets for Scientific Research
Intangible
Assets
•
Computer Software
AS PER
WEBSITE DETAILS
PRESS
RELEASE
KANSAI NEROLAC TO BUY
68% STAKE IN NEPALESE PAINT MAKER
Kansai Nerolac Paints today said it is in final stages of buying a majority stake in a Nepal-based paint company at an investment of Rs 75.500 Millions.
Kansai Nerolac Paints today said it is in final stages of buying a majority stake in a Nepal-based paint company at an investment of Rs 75.500 Millions. The company is in the process of finalising a 68% stake in Nepal Shalimar Private Limited (NSPL), Kansai Nerolac Paints Limited (KNPL) said in a filing to the BSE.
"The investment to be made by Kansai Nerolac towards this proposed acquisition shall be Rs 75.500 Millions," it added.
Further, Kansai Nerolac Paints would be giving a loan of around Rs.60.000 Millions to fund the working capital requirement of NSPL, it said.
"With KNPL's entry in the Himalayan state, our consolidated profit would improve and in turn increase EPS which will benefit our shareholders," Kansai Nerolac Managing Director HM Bharuka said. NSPL had posted a turnover of Rs 12.34 crore for the fiscal ended 2010-11.
NEROLAC PAINTS TO INVEST RS.3000.000 MILLIONS IN NEW
UNIT
MUMBAI, MAY 3:
Kansai Nerolac Paints plans to set up a manufacturing unit in Bangalore at an investment of Rs 300-crore this fiscal. The paint and varnish manufacturer said that, with the new plant, the company's annual capacity will increase to 260,000 tonnes from 220,000 tonnes across its existing 4 units.
“The capital expenditure will be funded through internal accruals,” the company's Managing Director, Mr H. M. Bharuka said.
The company also plans to expand its distribution network by 5 per cent from 14,000 dealers. Besides, it will add 5 new Nerolac Style Zone outlets in the current fiscal. At present, the company has 30 such stores.
The company's net profit for the quarter ending March 2012 has gone down by 22 per cent, which the company attributes to the gain of extraordinary income in the year-ago period. Besides, increasing input costs and depreciation in the rupee caused a dent on the company's bottom-line. However, topline grew by 28 per cent at Rs 6625.000 Millions as the demand for decorative paints went up.
Meanwhile, for the year ended March 31, 2012, Kansai Nerolac's net profit increased 4.8 per cent to Rs.2160.000 Millions, against Rs 2060.000 Millions year ago.
The firm's net sales also grew 21.59 per cent to Rs.25860.000 Millions in 2011-12, against Rs 21270.000 Millions in the previous year.
On price hikes, Mr Bharuka said, “We have taken a price hike of up to 13 per cent on an average last fiscal. The market remains volatile and a lot depends on how crude oil prices behave. We have not decided on any price hike yet, but going by the market trend, it can't be ruled out.”
He also said that the overall paint industry will see a slow growth at 10 per cent in FY 13 as against 14 per cent in FY 12 and 20 per cent in FY 11. The slowdown was also due to slower growth in the auto and white goods segment.
KANSAI NEROLAC LAUNCHES ITS FIRST FLAGSHIP SHOPPE IN MUMBAI
~ Nerolac
Impression Shoppe incorporates New Technology that enables customized colour
previews of
your
homes ~
12th February 2013, Mumbai:
Kansai Nerolac, one of
India's leading players in the paint industry has launched its first Nerolac Impression
Shoppe in - Jogeshwari West, Mumbai. The store offers you
- Latest colour trends with wide variety
- Unique Designer Finishes
- Spellbound Experience
- Expert Consultancy
The USP of the Impression
shoppe is the All in one Touch Screen. It provides assistance
on:
- Painting Guide,
- Designer Finishes (both Interior and Exterior),
- Product Application,
- Ready templates for previews,
- Customized previews as per consumer homes.
Since
painting today is a high ticket item for a consumer, he desires value for his
money and does a comprehensive research before finalizing the brand, product
and service. To help consumers make an informed choice - Kansai Nerolac Paints
Limited has started a Shop in Shop retail model called Nerolac
Impression Shoppe. These
stores have a welcoming ambience for consumers and their family unlike other
paint and hardware stores. This provides a complete assistance to consumers in
making a correct choice on the brand and product through various elements like
touch and feel panels, product information and color tools.
Kansai
Nerolac is experimenting with the touch panel, bigger retail format for the
first time with the launch of the new Nerolac Impression Shoppe in Central
Paints- Jogeshwari West, Mumbai. Speaking on this occasion Mr. Sukhpreet Singh, Vice
President of Marketing and Sales (Decorative) - Kansai Nerolac said "Consumers are
buying finishes on their wall and not just paint cans. They need to be very
sure of what the finish will be like, how the color will look under different
light conditions, what product is suitable for which surface, which shade
should be chosen. With these stores, we are trying to engage the consumers by
assisting them in making a correct choice". Mr. Shaji Thomas,
General Manager-Sales (Decorative) was
also present at the inauguration.
Consumer
Involvement in paints is increasing with their growing involvement in the Home
decor / Improvement space. With the advent of technology and social networking,
consumers are now more aware than they ever were on different kinds of paints
and finishes. This is also evident from the fact that more and more consumers
are visiting our website and Facebook page to know more about Kansai Nerolac.
KANSAI NEROLAC LAUNCHES ITS FIRST FLAGSHIP SHOPPE IN
MUMBAI
~ Nerolac Impression Shoppe incorporates New
Technology that enables customized colour previews of your homes ~
12th February 2013,- Mumbai: Kansai Nerolac, one of
India's leading players in the paint industry has launched its first Nerolac Impression
Shoppe in - Jogeshwari West, Mumbai. The store offers you -
• Latest colour trends with wide
variety
• Unique Designer Finishes
• Spellbound Experience
• Expert Consultancy
The USP of the Impression shoppe is the All in one
Touch Screen. It provides assistance on:
• Painting Guide,
• Designer Finishes (both
Interior and Exterior),
• Product Application,
• Ready templates for previews,
• Customized previews as per
consumer homes.
Since painting today is a high ticket item for a consumer, he desires value for his money and does a comprehensive research before finalizing the brand, product and service. To help consumers make an informed choice - Kansai Nerolac Paints Limited has started a Shop in Shop retail model called Nerolac Impression Shoppe. These stores have a welcoming ambience for consumers and their family unlike other paint and hardware stores. This provides a complete assistance to consumers in making a correct choice on the brand and product through various elements like touch and feel panels, product information and color tools.
Kansai Nerolac is experimenting with the touch panel, bigger retail format for the first time with the launch of the new Nerolac Impression Shoppe in Central Paints- Jogeshwari West, Mumbai. Speaking on this occasion Mr. Sukhpreet Singh, Vice President of Marketing and Sales (Decorative) - Kansai Nerolac said "Consumers are buying finishes on their wall and not just paint cans. They need to be very sure of what the finish will be like, how the color will look under different light conditions, what product is suitable for which surface, which shade should be chosen. With these stores, we are trying to engage the consumers by assisting them in making a correct choice". Mr. Shaji Thomas, General Manager-Sales (Decorative) was also present at the inauguration.
Consumer Involvement in paints is increasing with their growing involvement in the Home decor / Improvement space. With the advent of technology and social networking, consumers are now more aware than they ever were on different kinds of paints and finishes. This is also evident from the fact that more and more consumers are visiting our website and Facebook page to know more about Kansai Nerolac.
About
Kansai Nerolac Paints Limited:
Kansai Nerolac Paints has been at the forefront of paint manufacturing for more than 90 years pioneering a wide spectrum of quality paints. Kansai Nerolac is the second largest paint company in India and is the leader in Industrial segment, having a turnover of Rs.30200.000 Millions. The company has five strategically located manufacturing units all over India and a strong dealer network across the country. The company manufactures a diversified range of products ranging from decorative paints coatings for homes, offices, hospitals and hotels to sophisticated industrial coatings for most of the industries.
KANSAI NEROLAC PAINTS
LIMITED ANNOUNCES Q4 RESULTS FY 2011-2012
Net Sales up by 28 % and
Operating Profit up by 26.8 %
Mumbai, May 02, 2012: Kansai Nerolac Paints Limited (KNPL), one of the leading Paint companies in India, today at the Board meeting announced its unaudited results for the fourth quarter of financial year 2011-12. For the quarter, the company declared net sales of Rs.6670.000 Millions, marking a growth of 28% over the same quarter of the previous year. Operating profit was Rs. 567.000 Millions a growth of 26.8% over the same quarter of the previous year. For the year, Net sales were at Rs. 26010.000 Millions a growth of 21.4% over the same period last year and Net profit was at Rs. 2160.000 Millions a growth of 5 % over the same period last year.
For the year, Gross Sales and Operating Income was at Rs.30200.000 Millions an increase of 21 % over the same period last year. The bottom-line results are not strictly comparable due to extraordinary items in the previous year. For the year Operating profit was up at Rs.2810.000 Millions a growth of 16.4 % over same period last year.
Commenting on the announcement, Mr. H. M. Bharuka, Managing Director, Kansai Nerolac Paints Limited said, "FY12 has been a challenging year both in terms of demand and cost pressures. In the light of this, KNP has been able to maintain good momentum both in terms of growth and profit. During the quarter inflationary pressures continued as well as there was volatility in the exchange rates. This has had an impact on raw material prices. To counter inflation, KNPL has been able to partly pass on this increase to the market. The outlook for FY13 is challenging in terms of top-line and bottom line. The company has taken initiatives to ensure growth over the coming quarters. On the cost side, interest rates, volatility in exchange rates and inflationary pressures on input costs coupled with un-certainty in the global economy create pressures. A further depreciation of the rupee will add to the cost pressures. The short-term out-look thus continues to remain cautious. Overall, however the picture of paint demand remains very positive over the long term."
Outlook of Indian
Paint Industry:
The
size of domestic paint industry is estimated at Rs.240000.000 Millions as of
Mar 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.
About Kansai Nerolac
Paints Limited:
Kansai
Nerolac Paints has been at the forefront of paint manufacturing for more than
90 years pioneering a wide spectrum of quality paints. Kansai Nerolac is the
second largest paint company in India and is the leader in Industrial segment,
having a turnover of Rs.30200.00 Millions. The company has five strategically
located manufacturing units all over India and a strong dealer network across
the country. The company manufactures a diversified range of products ranging
from decorative paints coatings for homes, offices, hospitals and hotels to
sophisticated industrial coatings for most of the industries.
KANSAI NEROLAC PAINTS
LIMITED ANNOUNCES Q3 RESULTS FY 2011-2012
Net Sales up by 18.8%
and Net Profit up by 26.7%
Mumbai, January 30, 2012: Kansai Nerolac Paints Limited (KNPL), one of the leading
Paint companies in India, today at the Board meeting announced its unaudited
results for the third quarter of financial year 2011-12. For the quarter, the
company declared net sales of Rs. 6655.200 Millions, marking a growth of 18.8 %
over the same quarter of the previous year. Net profit was Rs. 526.800 Millions
a growth of 26.7 % over the same quarter of the previous year. For the nine
months ending December 30th 2011, Net sales were at Rs. 19328.200 Millions a
growth of 19.4 % over the same period last year and Net profit was at Rs.
1710.200 Millions a growth of 16.2 % over the same period last year.
Commenting
on the announcement, Mr. H. M. Bharuka, Managing Director, Kansai Nerolac
Paints Limited said, "KNP results have been good in light of the
conditions prevailing. During the quarter momentum in terms of growth and
profit has been maintained. Demand has been sub-dued especially in the industrial
segment. The company has taken many initiatives to ensure growth over the
coming quarters. The quarter witnessed sharp increases in Raw material prices
as well as un-favorable exchange rates which impacted raw material prices. To
counter inflation, KNPL has been able to partly pass on this increase to the
market. The immediate future appears challenging on account of the high
interest rates, volatility in exchange rates and input costs coupled with uncertainty
in the global economy. The short-term out-look thus remains cautious. Overall,
however the picture of paint demand remains very positive over the long
term."
Outlook of Indian
Paint Industry:
The
size of domestic paint industry is estimated at Rs.240000.000 Millions as of Mar
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.
KANSAI NEROLAC PAINTS
LIMITED ANNOUNCES Q2 RESULTS FY 2012-2013
Net Sales up by 10.7%
Mumbai, October 26, 2012 Kansai Nerolac Paints Limited (KNPL), one of the leading Paint companies in India, today at the Board meeting announced its unaudited results for the second quarter of financial year 2012-13. For the quarter, the company declared net sales of Rs. 6823.000 Millions, marking a growth of 10.7% over the same quarter of the previous year. EBITA was lower at Rs.789.00 Millions reflecting de-growth of 14.9 % over the same quarter of the previous year.
Commenting on the announcement, Mr. H. M. Bharuka, Managing Director, Kansai Nerolac Paints Limited said, "Demand for the paint has improved as the quarter progressed. The inflationary pressure on input costs has continued and has ensured that costs have not come down. KNPL has been able to partly pass on this increase to the market. The recent upswing in sentiment due to reforms and a near normal monsoon has resulted in better consumer sentiment and should augur well in the coming quarters. The immediate scenario still appears challenging both in terms of top-line and profitability and the out-look for the short term remains cautious Overall, however the picture of paint demand remains very positive over the long term."
Outlook of Indian Paint
Industry:
The size of domestic-paint industry is estimated at Rs.291000.000 Millions as of Mar 2012. 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.
KANSAI NEROLAC PAINTS
LIMITED ANNOUNCES Q1 RESULTS FY 2012-2013
Net Sales up by 11 % and Net
Profit up by 3.4 %
Mumbai, July 30, 2012: Kansai Nerolac Paints Limited (KNPL), one of the leading Paint companies in India, today at the Board meeting announced its unaudited results for the first quarter of financial year 2012-13. For the quarter, the company declared net sales of Rs. 7235.000 Millions, marking a growth of 11% over the same quarter of the previous year. EBITA was Rs. 969.000 Millions a growth of 6.4 % over the same quarter of the previous year.
Commenting on the announcement, Mr. H. M. Bharuka, Managing Director, Kansai Nerolac Paints Limited said, "Demand for the paint has been moderate during the quarter which is reflected in KNP numbers. The inflationary pressures witnessed in earlier quarters have reduced, however the fall in the rupee has ensured that input costs have not come down. KNPL has been able to partly pass on this increase to the market. Going forward uncertainty in the economy, concern on the monsoon, depreciation of the rupee keeping input costs high, all make the immediate future very challenging both in terms of top-line and profitability. 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:"
Outlook of Indian Paint
Industry:
The size of domestic paint industry is estimated at Rs.291000.000 Millions as of Mar 2012. 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.
Kansai Nerolac to enter JV
with Nepal Shalimar, to acquire 68% stake in Nepalese paint major
- Proposed acquisition will
cost Nerolac approx 7.55 Cr in investment -
- Acquisition expected to
consolidate 10% market share for Kansai Nerolac in Nepal –
20th June, 2012 - Owing to Nepal's progressive economy, Kansai Nerolac Paints Limited (KNPL) has shown significant business interest in its neighboring country. The company is in the process of finalizing its 68% stake in one of the leading paint manufacturers in Nepal, Nepal Shalimar Private Limited (NSPL).
The investment to be made by Kansai Nerolac towards this proposed acquisition shall be about NPR 12.58 crores (around Rs. 75.500 Millions). Further, the company would be giving a loan of NPR 10.20 crores (around Rs. 61.200 Millions) to fund the working capital requirement of NSPL.
Considered in the top 5 bracket of Nepal, Nepal Shalimar currently commands a market share of 8% in its country. It had a turnover of NPR 20.57 crores (Rs. 123.400 Millions) in 2010-11.
Identifying the synergy between the companies, Mr. HM Bharuka, MD, Kansai Nerolac, commented, "With KNPL's entry in the Himalayan state, our consolidated profit would improve and in turn increase EPS which will benefit our shareholders."
KNPL will be utilizing the manufacturing set up of Nepal Shalimar and manufacturing the Nerolac range of products that are currently exported to Nepal. This investment by the Company in NSPL is subject to the approval from the concerned authorities in India and Nepal.
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 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 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.61.78 |
|
|
1 |
Rs.99.06 |
|
Euro |
1 |
Rs.83.84 |
INFORMATION DETAILS
|
Information
Gathered by : |
JML |
|
|
|
|
Report Prepared
by : |
VRN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
10 |
|
PAID-UP CAPITAL |
1~10 |
10 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
10 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
10 |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
85 |
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.