MIRA INFORM REPORT
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Report No. : |
329669 |
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Report Date : |
30.06.2015 |
IDENTIFICATION DETAILS
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Name : |
KANSAI NEROLAC PAINTS LIMITED (w.e.f. 11.07.2006) |
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Formerly Known
As : |
GOODLASS NEROLAC PAINTS LIMITED |
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Registered Office
: |
Nerolac House, Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400 013, Maharashtra |
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Tel. No.: |
91-22-24934001 |
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Country : |
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Financials (as
on) : |
31.03.2015 |
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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 Million |
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CIN No.: [Company Identification
No.] |
L24202MH1920PLC000825 |
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IEC No.: |
Not Available |
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TAN No.: [Tax Deduction & Collection
Account No.] |
MUMG00234D |
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PAN No.: [Permanent Account No.] |
AAACG1376N |
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Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges. |
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Line of Business
: |
Subject is engaged in manufacturing and selling of decorative and industrial paints. |
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No. of Employees
: |
Information declined by the management. |
RATING & COMMENTS
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MIRA’s Rating : |
Aa (80) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a well-established and reputed company having fine track. Financial position of the company seems to be strong. The rating also takes into consideration Kansai Nerolac’s market leadership
in the industrial paints segment in India marked strong brand appeal in the
decorative paints segment. 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 – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
EXTERNAL AGENCY RATING
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Rating Agency Name |
CRISIL |
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Rating |
AAA (Long Term Rating) |
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Rating Explanation |
Have highest degree of safety and carry lowest credit risk. |
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Date |
31.07.2014 |
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Rating Agency Name |
CRISIL |
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Rating |
A1+ (Short Term Rating) |
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Rating Explanation |
Have very strong degree of safety and carry lowest credit risk. |
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Date |
31.07.2014 |
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
31-03-2013.
INFORMATION DENIED
Management Non-cooperative (91-22-38589744 / 24992730)
LOCATIONS
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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/ 24992796/ 24992807 |
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Fax No.: |
91-22-24919439/ 24973704 |
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E-Mail : |
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Website : |
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Sales Depot Office : |
Melaram Complex, Mandoli, Delhi – 110 093, India |
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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:
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DIRECTORS
AS ON 31.03.2015
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Name : |
Mr. P. P. Shah |
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Designation : |
Chairman |
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Name : |
Mr. D. M. Kothari |
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Designation : |
Vice Chairman |
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Name : |
Mr. H. M. Bharuka |
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Designation : |
Managing Director |
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Name : |
Mr. N. N. Tata |
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Designation : |
Director |
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Name : |
Mr. P.D. Chaudhari |
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Designation : |
Wholetime Director |
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Name : |
Mr. Tanaka |
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Designation : |
Director |
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Name : |
Mr. H. Furukawa |
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Designation : |
Director |
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Name : |
Mrs. B. Somaya |
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Designation : |
Director |
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Name : |
Mr. S. Asatsuma |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Gomatam Thirumalai Govindarajan |
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Designation : |
Company Secretary |
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Address : |
F-203, Lloyds
Estate, |
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Date of Birth
: |
16.11.1964 |
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Date of
Appointment : |
01.10.1993 |
SHAREHOLDING PATTERN
AS ON 31.03.2015
|
Category of
Shareholder |
Total No.
of Shares |
Total
Shareholding as a % of Total No. of Shares |
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(A) Shareholding of Promoter
and Promoter Group |
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373297600 |
69.27 |
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373297600 |
69.27 |
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Total shareholding of Promoter
and Promoter Group (A) |
373297600 |
69.27 |
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(B) Public Shareholding |
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|
14476477 |
2.69 |
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|
292280 |
0.05 |
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16604750 |
3.08 |
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52214826 |
9.69 |
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|
980963 |
0.18 |
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|
980963 |
0.18 |
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84569296 |
15.69 |
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35655385 |
6.62 |
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36022658 |
6.68 |
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|
8022610 |
1.49 |
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|
1352171 |
0.25 |
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|
837571 |
0.16 |
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191090 |
0.04 |
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|
323510 |
0.06 |
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81052824 |
15.04 |
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Total Public shareholding (B) |
165622120 |
30.73 |
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Total (A)+(B) |
538919720 |
100.00 |
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(C) Shares held by Custodians and
against which Depository Receipts have been issued |
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|
0 |
0.00 |
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0 |
0.00 |
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0 |
0.00 |
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Total (A)+(B)+(C) |
538919720 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in manufacturing and selling of decorative and industrial paints. |
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Products : |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
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Selling : |
Not Divulged |
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Purchasing : |
Not Divulged |
PRODUCTION STATUS: Not Available
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
2298 (Approximately) |
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Bankers : |
· Union Bank of India · Standard Chartered Bank · HDFC Bank Limited ·
BNP Paribas |
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Facilities : |
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Auditors : |
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Name : |
BSR and Company LLP Chartered Accountants |
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Address : |
1st Floor, Lodha Excelus, Apollo Mills Compound, N.M. Joshi
Marg, Mahalakshmi, Mumbai – 400 011, Maharashtra, India |
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Tel. No.: |
91-22-39896000 |
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Fax No.: |
91-22-30902511 |
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Memberships : |
Not Available |
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Collaborators : |
Not Available |
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Solicitors : |
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Name : |
Kanga and Company |
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Address : |
Mumbai, |
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Holding Company : |
Kansai
Paint Company Limited, Japan |
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Subsidiary Company : |
Kansai Paints Nepal
Private Limited |
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Fellow Subsidiary Companies : |
·
Kansai
Paint Philippines Inc. ·
Kansai
Coatings Malaysia SDN. BHD. ·
Kansai Paints Europe Limited |
CAPITAL STRUCTURE
AS ON 31.03.2015
Authorised Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
600000000 |
Equity Shares |
Rs.1/- each |
Rs.600.000 Million |
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Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
538919720 |
Equity Shares |
Rs.1/- each |
Rs.538.920 Million |
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Details of Shareholders holding
more than 5% of shares:
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Particulars
|
31.03.2015 |
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% |
No. of
Shares |
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Holding Company: |
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Kansai Paint Company Limited, Japan |
69.27 |
373297600 |
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Others: |
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Aberdeen Asset Management Asia Limited |
5.83 |
31419056 |
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Particulars |
31.03.2014 |
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No. of Shares |
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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 proportion to the number of equity shares held.
Reconciliation of the
number of shares outstanding:
|
Particulars |
31.03.2015 |
|
No. of Shares |
|
|
Number of shares at the beginning of the year |
53891972 |
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Issued during the year |
485027748 |
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Number of shares at
the end of the year |
538919720 |
During the year, the Company has sub-divided each Equity Shares of face value of Rs. 10 each to 10 (ten) Equity Shares of Rs. 1 each. The Effective date for the said sub-division was 27th March, 2015. Consequently, the number of shares and face value forming part of authorised, issued, subscribed and paid up share capital have been revised as at 31st March, 2015.
FINANCIAL DATA
[All figures are
in Rupees Million]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
I.
EQUITY
AND LIABILITIES |
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(1)Shareholders'
Funds |
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|
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(a) Share Capital |
538.900 |
538.920 |
538.920 |
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(b) Reserves & Surplus |
15429.300 |
13693.030 |
12320.880 |
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(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
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(2) Share Application money pending
allotment |
0.000 |
0.000 |
0.000 |
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Total
Shareholders’ Funds (1)+(2) |
15968.200 |
14231.950 |
12859.800 |
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(3) Non-Current
Liabilities |
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(a) Long-term borrowings |
415.000 |
517.100 |
604.850 |
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(b) Deferred tax liabilities (Net) |
751.500 |
658.440 |
430.630 |
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(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) Long-term
provisions |
254.900 |
287.880 |
385.240 |
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Total Non-current
Liabilities (3) |
1421.400 |
1463.420 |
1420.720 |
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(4) Current Liabilities |
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(a) Short
term borrowings |
0.000 |
0.000 |
0.000 |
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(b) Trade
payables |
3271.700 |
4407.400 |
3893.420 |
|
(c) Other
current liabilities |
1806.300 |
1663.360 |
1648.290 |
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(d) Short-term
provisions |
966.000 |
785.140 |
800.040 |
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Total Current
Liabilities (4) |
6044.000 |
6855.900 |
6341.750 |
|
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TOTAL |
23433.600 |
22551.270 |
20622.270 |
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II.
ASSETS |
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|
|
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(1) Non-current assets |
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|
|
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(a) Fixed Assets |
|
|
|
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(i) Tangible
assets |
9025.600 |
9048.780 |
7725.690 |
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(ii)
Intangible Assets |
24.400 |
47.010 |
19.040 |
|
(iii)
Capital work-in-progress |
439.400 |
481.550 |
1234.900 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
331.000 |
330.980 |
480.980 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
667.400 |
401.450 |
442.350 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
10487.800 |
10309.770 |
9902.960 |
|
|
|
|
|
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(2) Current assets |
|
|
|
|
(a)
Current investments |
1824.800 |
233.760 |
125.040 |
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(b)
Inventories |
5416.700 |
6456.610 |
5340.730 |
|
(c) Trade
receivables |
4963.400 |
4548.360 |
4199.890 |
|
(d) Cash
and cash equivalents |
340.500 |
548.740 |
600.660 |
|
(e)
Short-term loans and advances |
199.700 |
255.170 |
192.980 |
|
(f) Other
current assets |
200.700 |
198.860 |
260.010 |
|
Total
Current Assets |
12945.800 |
12241.500 |
10719.310 |
|
|
|
|
|
|
TOTAL |
23433.600 |
22551.270 |
20622.270 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
|
SALES |
|
|
|
|
|
|
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Revenue from Operations |
35490.600 |
31543.540 |
28566.190 |
|
|
|
Other Income |
217.900 |
103.310 |
163.170 |
|
|
|
TOTAL (A) |
35708.500 |
31646.850 |
28729.360 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
21457.600 |
20851.160 |
18985.740 |
|
|
|
Purchases of Stock-in-Trade |
1566.500 |
1295.260 |
1022.830 |
|
|
|
Changes in
Inventories of
Finished Goods, Work-in-progress and Stock-in-trade |
620.300 |
-806.970 |
-582.400 |
|
|
|
Employee Benefits Expense |
1433.000 |
1358.770 |
1181.430 |
|
|
|
Other Expenses |
5965.000 |
5224.450 |
4597.610 |
|
|
|
Reversal of excess depreciation in respect of earlier years |
0.000 |
0.000 |
1149.250 |
|
|
|
TOTAL (B) |
27922.670 |
24055.960 |
22632.710 |
|
|
|
|
|
|
|
|
Less |
PROFIT/(LOSS)
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4666.100 |
3724.180 |
2374.900 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
0.200 |
4.510 |
0.160 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
4665.900 |
3719.670 |
2374.740 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
676.900 |
649.760 |
471.070 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
BEFORE TAX (E-F) (G) |
3989.000 |
3069.910 |
1903.670 |
|
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|
|
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|
|
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|
Less |
TAX (H) |
1272.300 |
1004.200 |
1280.350 |
|
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|
|
|
|
|
|
|
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PROFIT/(LOSS)
AFTER TAX (G-H) (I) |
2716.700 |
2065.710 |
623.320 |
|
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|
|
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|
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|
Add |
PREVIOUS YEARS’ BALANCE
BROUGHT FORWARD |
9315.230 |
8149.650 |
6213.570 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
271.400 |
206.600 |
592.810 |
|
|
|
Tax on Proposed Dividend |
754.500 |
592.800 |
100.750 |
|
|
|
Transfer to General Reserve |
157.800 |
100.800 |
292.180 |
|
|
BALANCE CARRIED
TO THE B/S |
12031.900 |
9315.230 |
8149.650 |
|
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|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
NA |
12.930 |
5.940 |
|
|
|
Recovery of Freight, Insurance and Other Charges on Exports |
NA |
0.550 |
0.250 |
|
|
TOTAL EARNINGS |
NA |
13.480 |
6.190 |
|
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IMPORTS |
|
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|
Raw Materials |
5876.800 |
6061.780 |
4914.890 |
|
|
|
Components and Spare Parts |
16.600 |
19.820 |
11.940 |
|
|
|
Finished Products |
40.800 |
250.010 |
249.590 |
|
|
|
Capital Goods |
289.100 |
159.230 |
108.030 |
|
|
TOTAL IMPORTS |
6223.300 |
6490.840 |
5284.450 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
5.04 |
38.33 |
54.22 |
|
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Current Maturities of Long term debt |
NA |
NA |
NA |
|
Cash generated from operations |
4312.900 |
2774.900 |
29172.500 |
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
|
Jun 2014 |
Sep 2014 |
|
Net Sales |
|
9237.000 |
9232.100 |
|
Total Expenditure |
|
8067.100 |
8028.100 |
|
PBIDT (Excl Ol) |
|
1169.900 |
1204.000 |
|
Other Income |
|
78.100 |
43.500 |
|
Operating Profit |
|
1248.000 |
1247.500 |
|
Interest |
|
0.000 |
0.100 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
1248.000 |
1247.400 |
|
Depreciation |
|
164.600 |
173.800 |
|
Profit Before Tax |
|
1083.400 |
1073.600 |
|
Tax |
|
353.600 |
347.000 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
729.800 |
726.600 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
729.800 |
726.600 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Net Profit Margin (PAT / Sales) |
(%) |
7.65 |
6.24 |
2.18 |
|
|
|
|
|
|
|
Operating Profit Margin (PBIDT/Sales) |
(%) |
13.15 |
11.51 |
8.31 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
17.60 |
13.65 |
10.07 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.25 |
0.21 |
0.15 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.03 |
0.04 |
0.05 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.14 |
1.79 |
1.69 |
STOCK
PRICES
|
Face Value |
Rs. 11.00/- |
|
Market Value |
Rs. 215.85/- |
FINANCIAL ANALYSIS
[All figures are
in Rupees Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Share Capital |
538.920 |
538.900 |
538.900 |
|
Reserves & Surplus |
12320.880 |
13693.000 |
15429.300 |
|
Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Net
worth |
12859.800 |
14231.900 |
15968.200 |
|
|
|
|
|
|
long-term borrowings |
604.850 |
517.100 |
415.000 |
|
Short term borrowings |
0.000 |
0.000 |
0.000 |
|
Current Maturities of Long
Term Debt |
0.000 |
0.000 |
0.000 |
|
Total
borrowings |
604.850 |
517.100 |
415.000 |
|
Debt/Equity
ratio |
0.047 |
0.036 |
0.026 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
28566.190 |
31457.700 |
35490.600 |
|
|
|
10.122 |
12.820 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
28566.190 |
31457.700 |
35490.600 |
|
Profit |
623.320 |
1962.200 |
2716.700 |
|
|
2.18% |
6.24% |
7.65% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check list by
info agents |
Available in
Report (Yes/No) |
|
1 |
Year of establishment |
Yes |
|
2 |
Constitution of the entity -Incorporation
details |
Yes |
|
3 |
Locality of the entity |
Yes |
|
4 |
Premises details |
No |
|
5 |
Buyer visit details |
--- |
|
6 |
Contact numbers |
Yes |
|
7 |
Name of the person contacted |
No |
|
8 |
Designation of contact person |
No |
|
9 |
Promoter’s background |
No |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
No |
|
11 |
Pan Card No. of Proprietor / Partners |
No |
|
12 |
Voter Id Card No. of Proprietor / Partners |
No |
|
13 |
Type of business |
Yes |
|
14 |
Line of Business |
Yes |
|
15 |
Export/import details (if applicable) |
No |
|
16 |
No. of employees |
No |
|
17 |
Details of sister concerns |
|
|
18 |
Major suppliers |
No |
|
19 |
Major customers |
No |
|
20 |
Banking Details |
Yes |
|
21 |
Banking facility details |
Yes |
|
22 |
Conduct of the banking account |
---- |
|
23 |
Financials, if provided |
Yes |
|
24 |
Capital in the business |
Yes |
|
25 |
Last accounts filed at ROC, if applicable |
Yes |
|
26 |
Turnover of firm for last three years |
Yes |
|
27 |
Reasons for variation <> 20% |
---- |
|
28 |
Estimation for coming financial year |
No |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
Yes |
|
31 |
External Agency Rating, if available |
Yes |
|
32 |
Litigations that the firm/promoter
involved in |
Yes |
|
33 |
Market information |
---- |
|
34 |
Payments terms |
No |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
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 |
||||||
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 |
- |
|
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, |
- |
|
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
UNSECURED LOANS
|
PARTICULAR |
31.03.2015 (Rs.
in Million) |
31.03.2014 (Rs.
in Million) |
|
LONG TERM
BORROWINGS |
|
|
|
Unsecured Sales Tax Deferral Loan. |
406.00 |
508.100 |
|
|
|
|
|
Total |
406.000 |
508.100 |
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 seven annual installments from the reporting date. Unsecured Sales
Tax Deferral Loan is interest-free. [Current maturity of Unsecured Sales Tax
Deferral Loan of Nil (2013-2014 Rs. 50.900 Million) is disclosed under 'Other
Current Liabilities'
MANAGEMENT
DISCUSSION AND ANALYSIS
INTRODUCTION
Subject
a subsidiary of Kansai Paint Company Limited, Japan, started as Gahagan Paints
and Varnishes Company Limited in the year 1920. Having completed 94 years, Kansai
Nerolac has been known as a strong player in the paint industry with high
reputation for quality, innovation and brand identity.
It
has been the vision of Kansai Nerolac to leverage global technology and serve
the customer with superior coating systems and world class solutions.
The
Company has 4 manufacturing facilities – at Lote in Maharashtra, Bawal in
Haryana, Jainpur in U.P. and the latest state-of-the-art plant at Hosur in
Tamil Nadu. The geographical set up of the plants has been advantageous in
providing high service levels and supply chain efficiency, thus leading to
customer satisfaction. During the year, the Company also inaugurated its new
emulsion plant at Jainpur and new polyester resin plant at Lote.
Kansai
Nerolac as a Company has always aimed to work in congruence to the customer’s
needs and demands.
In
line with its vision, the Company strives to provide customer delight. Towards
this end the Company has over the years developed a variety of products in
order to meet customer demand in the Decorative, Automotive, Auto Refinish,
performance Coating and Powder Coating segments of the market.
The
Company regularly benchmarks itself against the best in class companies in
various sectors across the globe to identify good practices and emerging
thought leadership which will add long term value to the various stakeholders.
The Company’s strategic investments are guided by its vision, to drive long
term superior value for all stakeholders.
The
Company is recognized as a pioneer of the environment friendly products and in
line with its chosen platform of Healthy Home Paints, it shall continue to
spread awareness and also develop new environment friendly products with
superior quality.
The
Company is a leader in Industrial Paints. Complete system capability with
advanced technological products introduced over the years has been instrumental
in sustaining the leadership for industrial business segment. Subject has
always launched products for customers across various market segments which are
innovative and technologically superior.
The
Company views investment in IT as strategic and believes in using IT as a tool
for competitive differentiation.
Over
the years it has made significant investments in IT which have enabled
successful integration of IT with all its operations. This year the Company has
invested in HANA from SAP which is likely to yield benefits in the years to
come.
In
line with their vision of delighting the customers, this year, the focus was on
engaging the customers and thus enhancing the value proposition. The Company
undertook many initiatives in this regard and built strong relationship with
the customers; hence the theme of Customer Engagement.
The
organisation has been felicitated with several awards which indicate that
company has been appreciated by the entire value chain.
INDUSTRY PROGRESS
The
financial year 2013-14 has been challenging. Economic growth declined across
all the sectors due to a variety of domestic and external factors. High inflation,
fiscal deficit, unfavourable domestic savings and investment rates are some of
the factors which have been witnessed during the year. A prolonged period of
high interest rates, rising inflation along with a host of unfavourable factors
have contributed to a dip in consumer demand.
In
this tough operating environment the Company has continued on its path of
making strategic investments which will enable the Company to emerge stronger
in the times ahead. A number of strategic initiatives were taken focussing on
Technology, Brand, product, IT, Supply chain, Processes and people development.
These initiatives should lead to sustainable long term benefits.
As
on March 2014, the size of the paint industry is estimated at around
Rs.316500.000 Million. The Decorative paint segment is expected to be around
Rs.224500.000 Million; whereas the Industrial segment is expected to be around
Rs.92000.000 Million. In the long term paint industry is expected to grow
roughly at 1.5 to 2.0 times the GDP.
AWARDS AND RECOGNITION
AWARDS BY EXTERNAL
AGENCIES:
·
Subject,
Lote was awarded with “Certificate of Merit” from National Safety Council (NSC)
Maharashtra chapter, for achieving Zero Accident Frequency Rate in the year
2012.
·
Subject
was awarded with “SAP Solution Manager Excellence Awards” in Application and
Business Process Operations category by Indus Group.
·
SAP
awarded subject with a “SAP ACE AWARD” for building best In-house team for
enabling processes and system improvements derived from “SAP Enterprise Support
Services.”
·
Jainpur
plant had been felicitated by Mr. Shivprakash Jaiswal, Union minister of Coal,
Government of India, for “Best Safety Practices.”
·
Subject
Bawal won the silver category Greentech Environment Award 2013 for outstanding
achievement in Environment Management from Greentech Foundation.
·
Subject
received award in Hardware and Consumable category for Outstanding Contribution
to Supply Chain Management from Volvo Eicher Commercial Vehicles in the Annual
Supplier Conference 2014.
·
Their
Nerolac Home Painting Service (NHS) was recipient of the Award for developing a
portal that was awarded under Business Intelligence (BI)/ Analytics category in
the Information Week EDGE function.
·
Reader
Digest – brand related
AWARDS BY CUSTOMERS:
·
Subject
Bawal won the green vendor development award for commendable performance, for
the second consecutive year from Hero Motor Corp Limited. Tata Motors awarded
KNP with a Trophy and Special Citation for Distinction at the recently held
Vendor Conference at Macau.
·
Subject
have received Appreciation Certification from M&M Nashik Plant, for the
support extended for availability of Meru Olive Green paint within demanding
timelines.
·
Subject
was awarded with special “Long Association Award” by Escorts Limited–Agri Machinery
Group.
FINANCIALS
Sales
and operating revenue for the year aggregated to Rs.37390.000 million
reflecting a growth of 10.8 % over the previous year.
During
the year India currency further depreciated against the USD resulting in big
impact on the material cost.
The
Company continued with its initiatives to reduce procurement cost and to reduce
operational costs. These initiatives helped the Company in the current year to
keep the operational costs under control and improve the bottom line.
Increase
in depreciation is due to capitalisation of Hosur plant in the last quarter of
the previous year.
Interest
cost was slightly higher due to buyer’s credit availed during the year.
Other
income was lower at Rs.103 million as compared to Rs.163.000 million of the
previous year due to utilization of funds invested in mutual funds to finance
capital expenditure mainly at Hosur.
Profit
Before Depreciation, Interest and Tax (PBDIT), excluding Other Income, for the
year is higher at Rs.3621.000 million compared to Rs.3361.000 million
reflecting a growth of 7.7%.
Profit
Before Tax (PBT) for the year is Rs.3070.000 million as compared to Rs.3053.000
million for the previous year excluding Exceptional Item in the previous year,
viz. reversal of excess depreciation in respect of earlier years due to change
in the method of depreciation.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2015 (Rs. in Million) |
31.03.2014 (Rs. in Million) |
|
Claims against the
Company not acknowledged as debt: |
|
|
|
Corporate
guarantee given to HDFC Bank for employee loans |
14.100 |
14.100 |
|
Service
Tax |
32.200 |
0.000 |
|
Commitments: |
|
|
|
Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advances). |
36.800 |
52.100 |
|
|
|
|
|
Total |
83.100 |
66.200 |
STATEMENT OF
STANDALONE UNAUDITED RESULTS FOR THE QUARTER SIX MONTHS ENDED 30TH
SEPTEMBER 2014
(Rs. in Million)
|
Sr. No. |
Particular |
For the quarter ended |
For the Six months ended |
|
|
30.09.2014 |
30.06.2014 |
30.09.2014 |
||
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
||
|
|
Gross Sales/ Income |
10977.300 |
10950.800 |
21928.100 |
|
1. |
Income from operations |
|
|
|
|
|
|
9151.800 |
9210.700 |
18362.500 |
|
|
|
80.300 |
26.300 |
106.600 |
|
|
Total Income from operations (Net) |
9232.100 |
9237.000 |
18469.100 |
|
2. |
Expenditure |
|
|
|
|
|
|
5958.300 |
5400.200 |
11358.500 |
|
|
|
392.000 |
387.000 |
779.000 |
|
|
|
(185.100) |
422.700 |
237.600 |
|
|
|
348.600 |
340.400 |
689.000 |
|
|
|
173.800 |
164.600 |
338.400 |
|
|
|
1514.300 |
1516.800 |
3031.100 |
|
|
Total Expenses |
8201.900 |
8231.700 |
16433.600 |
|
3. |
Profit/ (Loss) from Operations
before Other Income, Finance Cost and Exceptional Items (1-2) |
1030.200 |
1005.300 |
2035.500 |
|
4. |
Other
Income |
43.500 |
78.100 |
121.600 |
|
5. |
Profit/ (Loss) from ordinary
activities before finance costs and Exceptional
Items (3+4) |
1073.700 |
1083.400 |
2157.100 |
|
6. |
Finance
Cost (net) |
0.100 |
-- |
0.100 |
|
7. |
Profit/ (Loss) from ordinary
activities after finance costs and but before Exceptional Items (5-6) |
1073.600 |
1083.400 |
2157.000 |
|
8. |
Exceptional
Items |
-- |
-- |
-- |
|
9. |
Profit/ (Loss) from ordinary
activities before tax (7+8) |
1073.600 |
1083.400 |
2157.000 |
|
10. |
Tax
Expense |
|
|
|
|
|
(a)
Current Tax |
317.300 |
311.300 |
628.600 |
|
|
(b)
Deferred Tax |
29.700 |
42.300 |
72.000 |
|
|
Total Tax Expense |
347.000 |
353.600 |
700.600 |
|
11. |
Profit/ (Loss) from ordinary
activities after tax (9-10) |
726.600 |
729.800 |
1456.400 |
|
12. |
Extraordinary
Items (net of tax expenses) |
-- |
-- |
-- |
|
13 |
Net Profit/ (Loss) for the
period (11-12) |
726.600 |
729.800 |
1456.400 |
|
14. |
Paid-up Equity Share Capital (Face Value per share Rs.10 each) |
538.900 |
538.900 |
538.900 |
|
15. |
Reserve excluding Revaluation Reserves |
-- |
-- |
-- |
|
16. |
Earnings Per Share
– (Before Extraordinary Items) (Net of tax) (of Rs.10 each) |
|
|
|
|
|
Basic |
13.48 |
13.54 |
27.02 |
|
|
Diluted |
13.48 |
13.54 |
27.02 |
|
17. |
Earnings Per Share
– (After Extraordinary Items) (Net of tax) (of Rs.10 each) |
|
|
|
|
|
Basic |
13.48 |
13.54 |
27.02 |
|
|
Diluted |
13.48 |
13.54 |
27.02 |
|
|
|
|
|
|
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
1. |
Public Shareholding |
|
|
|
|
|
-Number
of Shares |
16562212 |
16562212 |
16562212 |
|
|
- Percentage
of Shareholding |
30.73 |
30.73 |
30.73 |
|
|
|
|
|
|
|
2. |
Promoters and Promoter Group
Shareholding |
|
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
|
-
Number of Shares |
Nil |
Nil |
Nil |
|
|
- Percentage
of Shares (as a % of the Total Shareholding of promoter and promoter group) |
Nil |
Nil |
Nil |
|
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
Nil |
Nil |
Nil |
|
|
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
|
-
Number of Shares |
37329760 |
37329760 |
37329760 |
|
|
-
Percentage of Shares (as a % of the Total Shareholding of Promoter and
Promoter Group) |
100.00 |
100.00 |
100.00 |
|
|
- Percentage
of Shares (as a % of the Total Share Capital of the Company) |
69.27 |
69.27 |
69.27 |
|
Particulars |
Quarter Ended 30.09.2014 |
|
INVESTOR COMPLAINTS |
|
|
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 |
STATEMENT OF ASSETS AND LIABILITIES
|
SOURCES OF FUNDS |
30.09.2014 |
|
|
(Unaudited) |
|
I.
EQUITY AND LIABILITIES |
|
|
(1)Shareholders' Funds |
|
|
(a) Share Capital |
538.900 |
|
(b) Reserves &
Surplus |
15126.400 |
|
|
|
|
Total Shareholders’ Funds
|
15665.300 |
|
|
|
|
(3) Non-Current
Liabilities |
|
|
(a) long-term borrowings |
415.000 |
|
(b) Deferred tax liabilities
(Net) |
718.600 |
|
(c) Long Term Provisions |
254.900 |
|
Total Non-current
Liabilities (3) |
1388.500 |
|
|
|
|
(4) Current Liabilities |
|
|
(a) Trade payables |
4915.100 |
|
(b) Other current
liabilities |
2538.400 |
|
(c) Short-term provisions |
266.600 |
|
Total Current Liabilities
(4) |
7720.100 |
|
|
|
|
TOTAL |
24773.900 |
|
|
|
|
II.
ASSETS |
|
|
(1) Non-current assets |
|
|
(a) Fixed Assets |
9599.100 |
|
(b) Non-current
Investments |
331.000 |
|
(c) Long-term Loan and Advances |
396.400 |
|
Total Non-Current Assets |
10326.500 |
|
|
|
|
(2) Current assets |
|
|
(a) Current investments |
695.100 |
|
(b) Inventories |
6283.000 |
|
(c) Trade receivables |
5881.300 |
|
(d) Cash and cash
equivalents |
769.300 |
|
(e) Short-term loans and
advances |
373.900 |
|
(f) Other current assets |
444.800 |
|
Total Current Assets |
14447.400 |
|
|
|
|
TOTAL |
24773.900 |
Notes:
The above results have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on October 22, 2014. These results have been subjected to "limited review" by the statutory auditors of the Company.
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
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 records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 63.75 |
|
|
1 |
Rs. 100.12 |
|
Euro |
1 |
Rs. 71.20 |
INFORMATION DETAILS
|
Information
Gathered by : |
KMN |
|
|
|
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
JYO |
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 |
|
--PROFITABILITY |
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.