1. Summary Information
|
|
|
Country |
|
|
Company Name |
KANSAI
NEROLAC PAINTS LIMITED |
Principal Name 1 |
Dr. Jamshed Jiji Irani |
|
Status |
Good |
Principal Name 2 |
Mr.
Devendra Motilal Kothari |
|
|
|
Registration # |
11-000825 |
|
Street Address |
Nerolac
House, Ganpatrao Kadam Marg, Lower Parel, Mumbai - 400013, |
||
|
Established Date |
02.09.1920 |
SIC Code |
-- |
|
Telephone# |
91-22-24934001/
24992500 |
Business Style 1 |
Manufacturing |
|
Fax # |
91-22-24919439 |
Business Style 2 |
Marketing |
|
Homepage |
Product Name 1 |
Paints |
|
|
# of employees |
2456
(Approximately) |
Product Name 2 |
Varnishes |
|
Paid up capital |
Rs.538,920,000/- |
Product Name 3 |
Enamels |
|
Shareholders |
Promoter and Promoter Group - 69.27% Public shareholding- 30.73% |
Banking |
Union Bank of |
|
Public Limited Corp. |
YES |
Business Period |
93
Years |
|
IPO |
YES |
International Ins. |
- |
|
Public |
YES |
Rating |
Aa
(80) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Holding Company |
-- |
Kansai Paints Nepal Private Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2013 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
5,695,890,000 |
Current Liabilities |
5,541,710,000 |
|
Inventories |
5,340,730,000 |
Long-term Liabilities |
604,850,000 |
|
Fixed Assets |
7,744,730,000 |
Other Liabilities |
1,615,910,000 |
|
Deferred Assets |
0,000 |
Total Liabilities |
7,762,470,000 |
|
Invest& other Assets |
1840,920,000 |
Retained Earnings |
12,320,880,000 |
|
|
|
Net Worth |
12,859,800,000 |
|
Total Assets |
20,622,270,000 |
Total Liab. & Equity |
20,622,270,000 |
|
Total Assets (Previous Year) |
16,981,200,000 |
|
|
|
P/L Statement as of |
31.03.2013 |
(Unit: Indian Rs.) |
|
|
Sales |
28,566,190,000 |
Net Profit |
2,921,820,000 |
|
Sales(Previous yr) |
26,005,720,000 |
Net Profit(Prev.yr) |
2,158,850,000 |
MIRA
INFORM REPORT
|
Report Date : |
29.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
KANSAI NEROLAC PAINTS LIMITED (w.e.f. 11.07.2006) |
|
|
|
|
Formerly Known
As : |
GOODLASS NEROLAC PAINTS LIMITED |
|
|
|
|
Registered Office
: |
Nerolac House, Ganpatrao Kadam Marg, Lower Parel, Mumbai - 400013, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
02.09.1920 |
|
|
|
|
Com. Reg. No.: |
11-000825 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.538.920 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24202MH1920PLC000825 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMG00234D |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACG1376N |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing and Marketing of Paints, Varnishes and Enamels, Oils and Synthetic Resins. |
|
|
|
|
No. of Employees
: |
2456 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (80) |
|
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 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is a well-established and reputed company having fine track record. The rating reflect Kansai Nerolac’s market leadership in the industrial paints segment in India marked strong brand appeal in the decorative paints segment. Financial position of the company appears to be strong. Directors are reported to be experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 1, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
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
The services sector, the largest contributor to India’s GDP, contracted for
the sixth consecutive month in December, as orders dipped. However, hiring has
risen. Direct tax collections rose 12.3 % during the April – December
period of the current financial year. The government has decided to
retain 100 per cent foreign direct investment in both greenfield (new) and
brown field (existing) pharmaceutical companies, despite concerns over genetic
drugs going out of production, if multi-national companies take over domestic
ones. In M&A deals, a non compete clause would not be allowed, except in
special circumstances. The Department of Industrial Policy and Promotion plans
to release the next edition of its consolidated foreign direct investment
policy document on March 31, incorporating changes made in the past year. DIPP
compiles all policies related to India’s FDI regime into a single document to
make it easy for investors to understand. 185 million estimated number of
mobile internet users in India by June 2014, according to a report by the
Internet & Mobile Association of India and IMRB International. India
had 110 million mobile internet users with 25 million in rural areas. $3.77 tn
estimated global IT spending in 2014, according to research firm Gartner Inc.
The growth forecast for this year is cut to 3.1 %from the earlier estimate of
3.5 %. The spending growth forecast for telecom services – a segment that
accounts for more than 40 % at total IT spending – from 1.9 per cent to 1.2 per
cent is the main reason for this overall IT cut. A Reserve Bank of India
committee has recommended setting up a special category of lenders who would
cater to small businesses and households, to expand the number of customers
with access to banking services. These banks would focus onproviding payment
services and deposit products. Indian banks want the free use of
automated teller machines to be capped at five transactions in a month
including that of the bank in which the account is active. This follows state
government order to banks to install security guards at ATM booths after a
woman banker was assaulted in Bangalore. The government is likely to present a
vote on Account in mid-February. The annual Economic Survey will be tabled
later in Parliament along with the full Budget. A full Budget for 2014/15 is
likely to be present in July by the new government formed after the General
Election. The government will soon launch an internet spy system, called Netra,
to detect malafide messages. Security agency will deploy the system to capture
dubious voice traffic on applications such as Skype and Google Talk, as well as
tweeters.
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.
LOCATIONS
|
Registered Office : |
Nerolac House, Ganpatrao Kadam Marg, Lower Parel, Mumbai - 400 013, Maharashtra, India |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
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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|
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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 |
|
|
|
|
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 |
|
|
|
|
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 |
|
|
|
|
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 |
|
Date of Appointment : |
30.07.2010 |
|
|
|
|
Name : |
M. Tanaka |
|
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 |
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 |
|
|
|
(1) Indian |
|
|
|
|
|
|
|
|
37329760 |
69.27 |
|
|
37329760 |
69.27 |
|
Total shareholding
of Promoter and Promoter Group (A) |
37329760 |
69.27 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
744738 |
1.38 |
|
|
1342 |
0.00 |
|
|
1749207 |
3.25 |
|
|
6370528 |
11.82 |
|
|
8865815 |
16.45 |
|
|
|
|
|
|
3301578 |
6.13 |
|
|
|
|
|
|
3494764 |
6.48 |
|
|
793164 |
1.47 |
|
|
106891 |
0.20 |
|
|
68853 |
0.13 |
|
|
5350 |
0.01 |
|
|
32688 |
0.06 |
|
|
7696397 |
14.28 |
|
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. |
||||
|
|
|
||||
|
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) |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Bankers : |
· Union Bank of India · Standard Chartered Bank · HDFC Bank Limited ·
BNP Paribas |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Facilities : |
(Rs.
In Millions)
|
||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
BSR and Company Chartered Accountants |
|
Address : |
Mumbai, |
|
|
|
|
Solicitors : |
|
|
Name : |
Kanga and Company |
|
Address : |
Mumbai, |
|
|
|
|
Holding Company : |
Kansai Paints Nepal Private Limited (w.e.f. 01.10.2012) |
|
|
|
|
Fellow Subsidiary : |
· Kansai Paint Philippines Inc. · Kansai Resin (Thailand) Company Limited · Kansai Coatings Malaysia SDN. BHD. |
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 |
Yes |
|
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 |
|
LITIGATION DETAILS |
|||||||||
|
Bench:- Bombay |
|||||||||
|
Lodging No:- |
ITXAL/1018/2013 |
Failing Date:- |
08/07/2013 |
Reg. No.:- |
ITXA/1733/2013 |
Reg. Date:- |
07/09/2013 |
||
|
Petitioner:- |
COMMISSIONER OF INCOME TAX 6 |
Respondent:- |
KANSAI NEROLAC PAINTS LTD. |
||||||
|
Petn.Adv:- |
ARVIND PINTO |
||||||||
|
District:- |
MUMBAI |
||||||||
|
|
|||||||||
|
Bench:- |
DIVISION |
Category:- |
Tax Appeal |
||||||
|
Status:- |
Pre-Admission |
Stage:- |
|
||||||
|
Next Date:- |
10/02/2014 |
|
|||||||
|
Coram:- |
ACCORDING TO SITTING LIST ACCORDING TO SITTING LIST |
||||||||
|
|
|
||||||||
|
Act:- |
Order Act |
Under Section :- |
260A |
||||||
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.
STATEMENT OF
PROFIT AND LOSS FOR THE QUARTER ENDED 30TH JUNE 2013
(Rs. In Millions)
|
Sr. No. |
Particular |
Half Year Ended |
|
|
|
30.06.2013 |
|
|
|
Unaudited |
|
|
Gross Sales/ Income |
9356.000 |
|
1. |
Income from operations |
|
|
|
Net Sales/Income
from Operations |
7898.000 |
|
|
Other operating
income |
21.000 |
|
|
Total Income |
7919.000 |
|
2. |
Expenditure |
|
|
|
Cost
of materials consumed |
4864.000 |
|
|
Purchase
of stock in trade |
260.000 |
|
|
Changes
in inventories of finished goods, work in progress and stock in trade |
117.000 |
|
|
Employee
benefits expenses |
316.000 |
|
|
Depreciation
and amortization expenses |
153.000 |
|
|
Other
expenses |
1348.000 |
|
|
Total Expenses |
7058.000 |
|
3. |
Profit/ (Loss) from Operations
before Other Income, Finance Cost and Exceptional Items (1-2) |
861.000 |
|
4. |
Other
Income |
37.000 |
|
5. |
Profit/ (Loss) from ordinary
activities before finance costs and
Exceptional Items (3+4) |
898.000 |
|
6. |
Finance
Cost (net) |
- |
|
7. |
Profit/ (Loss) from ordinary activities
after finance costs and but before Exceptional Items (5-6) |
898.000 |
|
8. |
Exceptional
Items |
- |
|
9. |
Profit/ (Loss) from ordinary
activities before tax (7+8) |
898.000 |
|
10. |
Tax
Expense |
|
|
|
(a)
Current Tax |
238.000 |
|
|
(b) Deferred
Tax |
51.000 |
|
|
Total Tax Expense |
289.000 |
|
11. |
Profit/ (Loss) from ordinary
activities after tax (9-10) |
609.000 |
|
12. |
Extraordinary
Items (net of tax expenses) |
- |
|
13 |
Net Profit/ (Loss) for the period
(11-12) |
609.000 |
|
14. |
Paid-up Equity Share Capital (Face Value per share Re.10) |
539.000 |
|
15. |
Reserve excluding Revaluation Reserves |
|
|
16i. |
Earnings Per Share
– (Before exceptional Items) (Net of tax) (of Rs. 10 each) |
|
|
|
Basic |
11.30 |
|
|
Diluted |
11.30 |
|
|
|
|
|
16i. |
Earnings Per Share
– (Before Extraordinary Items) (Net of tax) (of Rs. 10 each) |
|
|
|
Basic |
11.30 |
|
|
Diluted |
11.30 |
|
|
|
|
|
16i. |
Earnings Per Share
– (After Extraordinary Items) (Net of tax) (of Rs. 10 each) |
|
|
|
Basic |
11.30 |
|
|
Diluted |
11.30 |
|
|
|
|
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
1. |
Public Shareholding |
|
|
|
-Number
of Shares |
16562212 |
|
|
-
Percentage of Shareholding |
30.73 |
|
|
|
|
|
2. |
Promoters and Promoter Group
Shareholding |
|
|
|
a) Pledged/Encumbered |
|
|
|
-
Number of Shares |
Nil |
|
|
-
Percentage of Shares (as a % of the Total Shareholding of promoter and
promoter group) |
Nil |
|
|
- Percentage
of Shares (as a % of the Total Share Capital of the Company) |
Nil |
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
-
Number of Shares |
37329760 |
|
|
-
Percentage of Shares (as a % of the Total Shareholding of Promoter and
Promoter Group) |
100 |
|
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
69.27 |
|
Particulars |
Quarter Ended 30.06.2013 |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
Nil |
|
Disposed of during the quarter |
Nil |
|
Remaining unresolved at the end of the
quarter |
Nil |
Notes:
1. The above results have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on July 25, 2013. These results have been subjected to "limited review" by the statutory auditors of the Company.
2. During the previous quarter ended March 31, 2013, the Company has retrospectively
changed its method of providing depreciation on its fixed assets from the
'Written Down Value' to the 'Straight Line' method. Accordingly, excess
depreciation charged for earlier years upto March 31, 2012 aggregating Rs.
1149.000 millions was written back and recognized as an exceptional item in the
results for the quarter ended and the year ended March 31, 2013. Had the
Company reported results for the quarter ended June 30, 2012 based on Straight
Line method of depreciation.
(Rs. In Millions)
|
|
Particulars |
Quarter Ended 30.09.2013 |
|
1 |
Depreciation charge for the quarter would have been lower by |
44.270 |
|
2 |
Deferred tax expense would have been higher by |
14.360 |
|
3 |
Net profit for the quarter would have been higher by |
29.910 |
3. The figures for the preceding 3 months ended March 31, 2013 are the
balancing figures between audited figures in respect of the full previous
financial year and the published year to date figures up to the third quarter
of the previous financial year. Also, the figures up to the end of third
quarter were only reviewed and not subjected to audit.
4. As the Company's business activity falls within a single segment viz.
'Paints' and the sales substantially being in the domestic market, the disclosure
requirements of Accounting Standard-17 "Segment Reporting", notified
under the Companies (Accounting Standards) Rules, 2006, are not applicable.
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.62.99 |
|
|
1 |
Rs.104.61 |
|
Euro |
1 |
Rs.86.17 |
INFORMATION DETAILS
|
Report Prepared
by : |
VRN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
80 |
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.