MIRA INFORM REPORT
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Report No. : |
341250 |
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Report Date : |
16.09.2015 |
IDENTIFICATION DETAILS
|
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 : |
India |
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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.] |
MU MG00234D |
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PAN No.: [Permanent Account No.] |
AAACG1376N |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
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
|
MIRA’s Rating : |
Aa (82) |
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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 : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Exists |
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Comments : |
Subject is a well-established and reputed company having excellent
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. The ratings also take into consideration, an acceptable share price of
Rs. 239.50/- recorded by the company as against a face value of Rs. 1.00 as
on September 14, 2015. 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.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
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Rating |
Long Term Rating = Aaa |
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Rating Explanation |
Have highest degree of safety and carry lowest credit risk |
|
Date |
August 14, 2014 |
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Rating Agency Name |
CRISIL |
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Rating |
Commercial Paper Programme = A1+ |
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Rating Explanation |
Have very strong degree of safety and carry lowest credit risk |
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Date |
August 14, 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
31-03-2015.
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 |
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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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Warehouse : |
Siddhanath Complex Survey No 49 Block No B1 To B4 Hissa No 4 Palki Dapole Bhiwandi, Thane – 421302, Maharashtra, 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
|
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 |
|
Date of Appointment
: |
01.10.1993 |
SHAREHOLDING PATTERN
AS ON 30.06.2015
|
Category of
Shareholder |
No. of Shares |
% of Holdings |
|
(A) Shareholding
of Promoter and Promoter Group |
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|
|
|
|
|
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|
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|
373297600 |
69.27 |
|
|
373297600 |
69.27 |
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Total
shareholding of Promoter and Promoter Group (A) |
373297600 |
69.27 |
|
(B) Public
Shareholding |
||
|
|
|
|
|
|
16304194 |
3.03 |
|
|
227680 |
0.04 |
|
|
16510778 |
3.06 |
|
|
42611695 |
7.91 |
|
|
9713871 |
1.80 |
|
|
9713871 |
1.80 |
|
|
85368218 |
15.84 |
|
|
|
|
|
|
33902745 |
6.29 |
|
|
|
|
|
|
36932312 |
6.85 |
|
|
8013810 |
1.49 |
|
|
1405035 |
0.26 |
|
|
890315 |
0.17 |
|
|
192590 |
0.04 |
|
|
322130 |
0.06 |
|
|
80253902 |
14.89 |
|
Total Public
shareholding (B) |
165622120 |
30.73 |
|
Total (A)+(B) |
538919720 |
100.00 |
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total
(A)+(B)+(C) |
538919720 |
0.00 |
Shareholding of securities (including shares, warrants,
convertible securities) of persons belonging to the category Promoter and
Promoter Group
|
Sl.No. |
Name of the
Shareholder |
Details of Shares held |
|
|
No. of Shares held |
As a % of grand total (A)+(B)+(C) |
||
|
1 |
KANSAI PAINT COMPANY LIMITED |
37,32,97,600 |
69.27 |
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Total |
37,32,97,600 |
69.27 |
Shareholding of securities (including shares, warrants,
convertible securities) of persons belonging to the category Public and holding
more than 1% of the total number of shares
|
Sl. No. |
Name of the
Shareholder |
No. of Shares held |
Shares as % of Total No. of Shares |
|
|
1 |
ABERDEEN ASSET MANAGEMENT ASIA LTD |
29188452 |
5.42 |
|
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2 |
ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD |
25210620 |
4.68 |
|
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3 |
THE NEW INDIA ASSURANCE COMPANY LIMITED |
6469530 |
1.20 |
|
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4 |
THE ORIENTAL INSURANCE COMPANY LIMITED |
6017018 |
1.12 |
|
|
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Total |
66885620 |
12.41 |
Shareholding of securities (including shares, warrants, convertible
securities) of persons (together with PAC) belonging to the category “Public”
and holding more than 5% of the total number of shares of the company
|
Sl. No. |
Name(s) of the shareholder(s) and the Persons
Acting in Concert (PAC) with them |
No. of Shares |
Shares as % of Total No. of Shares |
|
|
1 |
ABERDEEN ASSET MANAGEMENT ASIA LTD |
29188452 |
5.42 |
|
|
|
Total |
29188452 |
5.42 |
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 |
GENERAL INFORMATION
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Suppliers : |
Not Divulged
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Customers : |
Not Divulged
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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 : |
(Rs.
In Million)
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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:
|
Particulars
|
31.03.2015 |
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|
% |
No. of Shares |
|
|
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 |
|
Particulars |
31.03.2014 |
|
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 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 |
|
Issued during the year |
485027748 |
|
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 |
|
|
|
|
(1)Shareholders'
Funds |
|
|
|
|
(a) Share Capital |
538.900 |
538.900 |
538.920 |
|
(b) Reserves & Surplus |
15429.300 |
13693.000 |
12320.880 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1)+(2) |
15968.200 |
14231.900 |
12859.800 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) Long-term borrowings |
415.000 |
517.100 |
604.850 |
|
(b) Deferred tax liabilities (Net) |
751.500 |
658.400 |
430.630 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) Long-term
provisions |
254.900 |
287.900 |
385.240 |
|
Total Non-current
Liabilities (3) |
1421.400 |
1463.400 |
1420.720 |
|
|
|
|
|
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(4) Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Trade
payables |
3271.700 |
4407.400 |
3893.420 |
|
(c) Other
current liabilities |
1806.300 |
1663.300 |
1648.290 |
|
(d) Short-term provisions |
966.000 |
785.100 |
800.040 |
|
Total Current
Liabilities (4) |
6044.000 |
6855.800 |
6341.750 |
|
|
|
|
|
|
TOTAL |
23433.600 |
22551.100 |
20622.270 |
|
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|
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II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i)
Tangible assets |
9025.600 |
9048.700 |
7725.690 |
|
(ii)
Intangible Assets |
24.400 |
47.100 |
19.040 |
|
(iii)
Capital work-in-progress |
439.400 |
481.500 |
1234.900 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
331.000 |
331.000 |
480.980 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
667.400 |
401.400 |
442.350 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
10487.800 |
10309.700 |
9902.960 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
1824.800 |
233.700 |
125.040 |
|
(b)
Inventories |
5416.700 |
6456.600 |
5340.730 |
|
(c) Trade
receivables |
4963.400 |
4548.300 |
4199.890 |
|
(d) Cash
and cash equivalents |
340.500 |
548.800 |
600.660 |
|
(e)
Short-term loans and advances |
199.700 |
269.300 |
192.980 |
|
(f) Other
current assets |
200.700 |
184.700 |
260.010 |
|
Total
Current Assets |
12945.800 |
12241.400 |
10719.310 |
|
|
|
|
|
|
TOTAL |
23433.600 |
22551.100 |
20622.270 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
35490.600 |
31640.200 |
28566.190 |
|
|
|
Other Income |
217.900 |
103.300 |
163.170 |
|
|
|
TOTAL (A) |
35708.500 |
31743.500 |
28729.360 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
21457.600 |
20851.100 |
18985.740 |
|
|
|
Purchases of Stock-in-Trade |
1566.500 |
1295.300 |
1022.830 |
|
|
|
Changes in
Inventories of
Finished Goods, Work-in-progress and Stock-in-trade |
620.300 |
(806.900) |
(582.400) |
|
|
|
Employee Benefits Expense |
1433.000 |
1358.800 |
1181.430 |
|
|
|
Other Expenses |
5965.000 |
5321.000 |
4597.610 |
|
|
|
Reversal of excess depreciation in respect of earlier years |
0.000 |
0.000 |
1149.250 |
|
|
|
TOTAL (B) |
31042.400 |
28019.300 |
22632.710 |
|
|
|
|
|
|
|
|
Less |
PROFIT/(LOSS)
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4666.100 |
3724.200 |
2374.900 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
0.200 |
4.500 |
0.160 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
4665.900 |
3719.700 |
2374.740 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
676.900 |
649.800 |
471.070 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
BEFORE TAX (E-F) (G) |
3989.000 |
3069.900 |
1903.670 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1272.300 |
1004.200 |
1280.350 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
AFTER TAX (G-H) (I) |
2716.700 |
2065.700 |
623.320 |
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
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 |
|
Net cash flow from (used in) operation |
3070.000 |
1892.200 |
22370.300 |
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. 1.00/- |
|
Market Value |
Rs. 239.50/- |
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 |
31640.200 |
35490.600 |
|
|
|
10.761 |
12.169 |
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 |
31640.200 |
35490.600 |
|
Profit |
623.320 |
2065.700 |
2716.700 |
|
|
2.18% |
6.53% |
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 |
Yes |
|
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
2014-15 has been one of the better years for the paint industry. The decisive electoral mandate has led to optimism in the economy. Softening of international crude and commodity rates has eased the mounting cost pressures on the industry to some extent. It is expected that the policy direction undertaken by the government will lead to a revival of all major sectors like Housing, Automobiles and Infrastructure as well as trigger fresh opportunities in the form of Smart cities. All this is positive for the Paint Industry. Going forward it is expected that all paint segments like Decorative, Automotive and Performance Coatings will benefit from this revival. However, the recent unseasonal rains and its impact on the farm output together with a relatively poor forecast is likely to act as a dampener.
As on March 2015, the size of the paint industry is estimated to be around Rs. 355000.000 Million.
AWARDS AND RECOGNITION
AWARDS BY EXTERNAL
AGENCIES:
·
The Kites activity by Nerolac was one of the
five campaigns shortlisted this year in the “Best In-Store Promotion” category
at the EEMAX awards 2014
·
Kansai Nerolac won a ‘Silver’ in Best Media
Innovation at Emvies 2014.
·
Kansai Nerolac won a ‘Silver’ in Best Media
Strategy Category for “You Can” campaign at Emvies 2014.”
·
Bawal Plant was awarded with Greentech Safety
award in gold category\
·
Lote team was awarded with “Certificate of
Merit” by National Safety Council (NSC) – Maharashtra chapter for achieving
“Zero Accident Frequency Rate
·
Bawal was awarded with FICCI Safety Systems
Excellence Award for Manufacturing after rigorous examination.
AWARDS BY CUSTOMERS:
·
Toyota Kirloskar Motor Limited (TKML) awarded
KNPL with vendor award – “Certificate of Excellence for Achieving Quality
Targets”
·
KNPL was facilitated with Vendor Performance
award by SUZUKI Motors India
·
KNPL received award from Gabriel India for “Best
Quality Performance in Proprietary Items”
·
KNPL was awarded the first place in west zone in
Honda Cars India Limited (HCIL) Suppliers’ Club Kaizen competition
·
KNPL received award for “Best Eco Kaizen” from
TKML
·
KNPL received best vendor award from Honda
Motorcycle and Scooter India Limited (HMSI).
FINANCIALS
Sales and operating revenue for the year aggregated to Rs. 42116.400 Million reflecting a growth of 12.6% over the previous year.
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.
Depreciation for the year is at Rs. 676.900 Million as compared to Rs. 649.800 Million of the previous year.
Interest cost was virtually nil due to effective cash management.
Other income was higher at Rs. 217.900 Million as compared to Rs. 103.300 Million of the previous year mainly on account of exchange gain of Rs. 96.000 Million.
Profit Before Depreciation, Interest and Tax (PBDIT), excluding Other Income, for the year is higher at Rs. 4448.200 Million compared to Rs. 3620.900 Million reflecting a growth of 22.8%. Profit Before Tax (PBT) for the year is Rs. 3989.000 Million as compared to Rs. 3069.900 Million of the previous year which is a growth of 29.9% over previous year.
To comply with Section 135 of the Companies Act, 2013, the Company has spent Rs. 45.100 Million towards Corporate Social Responsibility. This amount is shown under appropriation.
The Company has not accepted any deposits covered under Chapter V of the Companies Act, 2013, during the year.
There are no significant or material orders passed by any Regulators, Courts or Tribunals against the Company which could impact the going concern status and Company’s operations in future.
There has been no change in the nature of business during the year. There have been no material changes and commitments affecting the financial position of the Company which have occurred between the end of the financial year of the Company to which the financial statements relate and the date of this Report.
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 FINANCIAL RESULTS
FOR THE QUARTER ENDED 30TH JUNE 2015
(Rs. in million)
|
Sr. No. |
Particulars |
Quarter Ended |
|
30.06.2015 |
||
|
Unaudited |
||
|
Part I |
|
|
|
1. |
Income from Operations |
|
|
|
a) Net Sales / Income
from Operations |
9974.700 |
|
|
b) Other Operating Income |
22.900 |
|
|
Total Income from
Operations (net) |
9997.600 |
|
2. |
Expenditure |
|
|
|
a) Cost of materials
consumed |
5659.100 |
|
|
b) Purchase of
stock-in-trade |
407.500 |
|
|
c) Changes in inventories of finished goods,
work-in-progress and stock-in-trade |
280.600 |
|
|
d) Employee benefits
expense |
403.300 |
|
|
e) Depreciation and
amortisation expense |
167.500 |
|
|
f) Power and Fuel Charges |
0.000 |
|
|
g) Other expenses |
1756.600 |
|
|
Total Expenses |
8674.600 |
|
3. |
Profit/ (Loss) from Operations before Other
Income, Exchange gain/(loss), Finance costs and Exceptional items (1-2) |
1323.000 |
|
4. |
Other Income |
64.600 |
|
5. |
Profit /(Loss) from Ordinary activities before finance costs and Exceptional
items (3+4a+4b) |
1387.600 |
|
6. |
Finance
Costs |
-- |
|
7. |
Profit
/ (Loss) from ordinary activities after Finance costs but before Exceptional
items (5-6) |
1387.600 |
|
8. |
Exceptional
items |
-- |
|
9. |
Profit/
(Loss) from ordinary activities before tax (7+8) |
1387.600 |
|
10. |
Tax
expenses |
447.300 |
|
11. |
Net
Profit / (Loss) from ordinary activities after tax (9-10) |
940.300 |
|
12. |
Extraordinary items |
-- |
|
13. |
Net Profit / (Loss) for the period (11+12) |
940.300 |
|
14. |
Paid-up equity share
capital (Face Value of Rs. 10 per share) |
538.900 |
|
15. |
Reserve excluding
Revaluation reserve |
|
|
16. |
Earnings Per Share (EPS) before
and after extraordinary items (of Rs. 10/- each) a) Basic b) Diluted |
1.74 1.74 |
|
|
|
|
|
Part II |
|
|
|
A. |
PARTIULARS OF
SHAREHOLDINGS |
|
|
|
Public Shareholding |
|
|
|
- Number of Shares |
165622120 |
|
|
- Percentage of Shareholding |
30.73 |
|
|
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 |
373297600 |
|
|
- 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 |
For the quarter ended 30th June 2015 |
|
B INVESTORS
COMPLAINTS |
|
|
Pending at
the beginning of the quarter |
Nil |
|
Received
during the quarter |
1 |
|
Disposed
during the quarter |
1 |
|
Remaining
unresolved at the end of the quarter |
Nil |
Note:
1. The above results have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on 30 July 2015. These results have been subjected to "limited review" by the statutory auditors of the Company.
2. Figures for the quarter ended 31 March 2015 as reported in this financial results are the balancing figures between audited figures in respect of the full financial year and the published year to date figures up to the end of the third quarter of the relevant financial year. Also the figures up to the end of the third quarter had only been reviewed and not subjected to audit
3 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.
4. During the previous year, the Company had sub-divided each Equity Share of face value of Rs. 10 each to 10 (ten) Equity Share of Re. 1 each. The Effective date for the said sub-division was 27 March 2015.
5. In accordance with the ‘FAQ on Provisions of Corporate Social Responsibility under Section 135 of the Companies Act, 2013 and Rules thereon’ (the FAQ), issued by the Institute of Chartered Accountants of India. Rs. 45.100 Million spent towards Corporate Social Responsibility Activity under Section 135 of the Companies Act, 2013 (CSR Activity) during the quarter and year ended on 31 March 2015 was recorded and disclosed as an appropriation of profit in the financial results statements for the quarter and year ended on 31 March 2015 Consequent to the issuance of ‘Guidance Note on accounting for expenditure on Corporate Social Responsibility Activities’ (the Guidance Note), issued on 15 May 2015, Rs. 7.600 Million amount spent during the quarter ended 30 June 2015 towards CSR activity has been charged the Statement of Profit and Loss.
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, India Prisons Service,
Interpol, etc.
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. 66.37 |
|
UK Pound |
1 |
Rs. 102.54 |
|
Euro |
1 |
Rs. 75.32 |
INFORMATION DETAILS
|
Information
Gathered by : |
KMN |
|
|
|
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
JYO |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
10 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
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 |
|
82 |
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.