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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

504279

Report Date :

16.04.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

BERGER PAINTS INDIA LIMITED

 

 

Registered Office :

Berger House, 129, Park Street, Kolkata – 700017, West Bengal

Tel. No.:

91-33-22299724 to 28

 

 

Country :

India

 

 

Financials (as on) :

31.03.2017

 

 

Date of Incorporation :

17.12.1923

 

 

Com. Reg. No.:

21-004793

 

 

Capital Investment / Paid-up Capital :

INR 971.000 Million

 

 

CIN No.:

[Company Identification No.]

L51434WB1923PLC004793

 

 

IEC No.:

[Import-Export Code No.]

0288019539

 

 

GSTN :

[Goods & Service Tax Registration No.]

19AABCB0976E1ZS

 

 

TIN No:

19200027032

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

AABCB0976E

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Subject is engaged in the business of manufacturing and selling of paints. [Registered Activity]

 

 

No. of Employees :

2993 (Approximately)

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

A++

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a subsidiary of “U K Paints (India) Limited”. The company was incorporated in 1923 and is one of the oldest paint companies in India.


It is a manufacturer of paints and varnishes, and is present in all product segments, including decorative, general industrial, automotive, protective, and powder coatings.


Its prominent brands include Silk, Luxol, Weathercoat, Rangoli, Illusions, and Jadoo. It is the market leader in protective paints, and has a marginal presence in the automotive and powder coating segments.


For the financial year 2017, the company has achieved 7.02% growth in its revenue as compared to previous year revenue and has maintained fair profitability margin of 9.68% during the year under review.


Rating takes into consideration Berger Paints' established position in the Indian paints industry and it is a second-largest player in the paints industry supported by strong brand name with well-spread distribution network and wide product portfolio of the company.



The healthy financial profile of the company is reflected by its healthy solvency indicators due to low debt balance sheet profile along with strong net worth base and satisfactory liquidity position.



The rating also takes into consideration strong financial and managerial support that the company receive from its holding back entity and its well experience management team.


The company has its share price trading at around INR. 271.95 against the Face Value of (FV) INR. 01 On BSE as on April 14, 2018.


As per the unaudited quarterly financials of December 2017, the company has achieved revenue of INR 11909.10 million and has reported profit margin of 9.64%.

However, these rating strengths are partially offset by moderate segmental diversity in revenue and limited pricing power owing to intense industry competition.

Business is active. Payment seems to be regular.


In view of aforesaid, 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

 

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

Long term = AAA

Rating Explanation

Highest degree of safety and carry lowest credit risk.

Date

15.12.2017

 

Rating Agency Name

CRISIL

Rating

Short term = A1+

Rating Explanation

Very strong degree of safety and carry lowest credit risk.

Date

15.12.2017

 

 

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 31-03-2018.

 

 

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

 

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 16.04.2018

 

 

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

 

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

 

 

INFORMATION DENIED

 

Management non co –operative (91-33-22299724)

 

 

 

LOCATIONS

 

Registered Office :

Berger House, 129 Park Street, Kolkata – 700017, West Bengal, India

Tel. No.:

91-33-22299724 to 28 / 22296005/ 06/ 1

Fax No.:

91-33-22277288/ 22499009/ 22499729/ 22003549

E-Mail :

berger@vsnl.com 

aniruddasen@bergerindia.com

consumerfeedback@bergerindia.com

Website :

www.bergerpaints.com 

Location :

Owned

Locality :

Commercial

 

 

Plant 1  :

14 and 15 Swarnamoyee Road, P. O. Botanic Garden, Shibpur, Howrah – 711 103, West Bengal, India

Tel. No.:

91-33-2668 4706

Fax No.:

91-33-2668 2956

 

 

Plant 2 :

RS No. 53-56 Pandasozhanallur, Village – Nettapakkam Commune, Pondicherry – 605 106, Tamil Nadu, India

Tel. No.:

91-431-2699574 / 171

 

 

Plant 3 :

316-317, Kundaim Industrial Estate, Kundaim, North Goa, India

Tel. No.:

91-832-2395610 / 6407

Fax No.:

91-832- 239 5610

 

 

Plant 4 :

D-20, Site-B, Surajpur Industrial Area, Greater Noida, District Gautam Budh Nagar, Surajpur, India

Tel. No.:

91-120-2561320 / 2560621 / 2561321

 

 

Plant 5 :

38A, Industrial Area, Bulandshahar Road, Sikandrabad, Uttar Pradesh, India

Tel. No.:

91-5735-222384 / 222249

 

 

Plant 6 :

SIDCO Industrial Growth Centre, Sambha, District Jammu, Jammu and Kashmir – 184 121, India

Tel. No.:

91-9123-246451 / 58 / 59

 

 

Plant 7 :

103, G.T. Road, Rishra, Hooghly – 712 248, West Bengal, India

Tel. No.:

91-33-26720640/ 41 / 42

Fax No.:

91-33-26720491

 

 

Plant 8 :

Plot No. G-35, Additional Jejuri Industrial Area, Taluka- Purandar, Pune- 412 303, Maharashtra, India

Tel. No.:

91-2115-254816/17/18/19

 

 

Plant 9 :

Plot No. 262, Industrial Growth Centre, Thumukunta Village, Hindupur, District – 515211, Anantapur, Andhra Pradesh, India

Tel. No.:

91-8556-297245

 

 

Plant 10 :

Plot No. 32 (PT), APIIC Industrial Park, Gollapuram, Hindupur, District Anantapur - 515 211, Andhra Pradesh, India

 

* For British Paints Division

 

 

Plant 11 :

IIDC of AIDC, Nathkuchi, Near North East, Mega Food Park, Tihu, Nalbari, Assam-781 355, India

 

 

Plant 12 :

IIDC Centre Project, Bhomoraguri/Natali, District Nagaon, Assam, India

 

 

Branch Office:

Plot No.9, 10, 11, Survey No.112/1, Navagama Ruda Transport, Rajkot - 360 003, Gujarat, India

 

 

Sales Office :

804, Windfall Sahar Plaza Complex, J. B. Nagar, Andheri (East), Mumbai – 400059, Maharashtra, India

 

 

DIRECTORS

 

As on: 2017

 

Name :

Mr. Kuldip Singh Dhingra

Designation :

Chairman

Address :

3, Tees Janaury Marg, Delhi - 110011, India

Date of Appointment :

17.07.1991

DIN No.:

00048406

 

 

Name :

Mr. Gurbachan Singh Dhingra

Designation :

Vice-Chairman

Address :

Rahen Basera, 6 Sultanpur Farms, Mehrauli, New Delhi - 110030, India

Date of Appointment :

14.05.1993

DIN No.:

00048465

 

 

Name :

Mr. Abhijit Roy

Designation :

Managing Director and Chief Executive Officer

Address :

Flat No - 3D, Block - 1, 10 Convent Road, PO/PS - Entally, Kolkata - 700014, West Bengal, India

Date of Appointment :

11.02.2011

DIN No.:

03439064

 

 

Name :

Mr. Kamal Ranjan Das

Designation :

Director

Address :

8, Short Street, Kolkata - 700017, West Bengal, India

Date of Appointment :

20.05.1993

DIN No.:

00048491

 

 

Name :

Mr. Kanwardip Singh Dhingra

Designation :

Additional Director

Address :

Rahen Basera, 6 Sultanpur Farms, Village Sultanpur, Mehrauli, New Delhi - 110030, India

Date of Appointment :

01.12.2014

DIN No.:

02696670

 

 

Name :

Mr. Naresh Gujral

Designation :

Additional Director

Address :

5A, Amrita Shergill Marg, New Delhi - 110003, India

Date of Appointment :

20.08.2014

DIN No.:

00028444

 

 

Name :

Mrs. Rishma Kaur

Designation :

Additional Director

Address :

New Motibagh Palace, Patiala, Patiala - 147001, Punjab, India

Date of Appointment :

01.12.2014

DIN No.:

00043154

 

 

Name :

Mr. Gopal Krishna Pillai

Designation :

Additional Director

Address :

D - 241, 2nd Floor, Sarvodaya Enclave, New Delhi - 110017, India

Date of Appointment :

12.09.2014

DIN No.:

02340756

 

 

Name :

Mr. Pulak Chandan Prasad

Designation :

Director

Address :

Block-10 Cuscaden Walk, 21-01 Singapore - 249693, Singapore

Date of Appointment :

13.11.2009

DIN No.:

00003557

 

 

Name :

Mr. Dhirendra Swarup

Designation :

Additional Director

Address :

A-9 / 13B, Vasant Vihar, New Delhi - 110057, India

Date of Appointment :

08.09.2014

DIN No.:

02878434

 

 

KEY EXECUTIVES

 

Name :

Mr. Aniruddha Sen

Designation :

Company Secretary

Address :

Flat A-1, Sohail Regency, 252/2, N S C Bose Road, Kolkata - 700040, West Bengal, India

Date of Appointment :

17.05.2010

PAN No. :

AKTPS1168C

 

 

Name :

Mr. Srijit Dasgupta

Designation :

Chief Finance Officer

Address :

84- ND Block – E, New Alipore, Kolkata – 700053, West Bengal, India

Date of Appointment :

01.04.2014

PAN No. :

ACNPD6477B

 

 

BOARD COMMITTEES :

Audit Committee :
  • Mr. Kamal Ranjan Das
  • Mr. Gurbachan Singh Dhingra
  • Mr. Pulak Chandan Prasad
  • Mr. Dhirendra Swarup
  • Mr. Gopal Krishna Pillai

 

 

Compensation Committee and Nomination and Remuneration :
  • Mr. Kamal Ranjan Das
  • Mr. Kuldip Singh Dhingra
  • Mr. Pulak Chandan Prasad

 

 

CSR Committee :
  • Mr. Kuldip Singh Dhingra (Chairman)
  • Mr. Abhijit Roy
  • Mr. Kamal Ranjan Das
  • Mr. Kanwardip Singh Dhingra
  • Mrs. Rishma Kaur
  • Mr. Srijit Dasgupta
  • Mr. Anil Bhalla
  • Mr. Aniruddha Sen

 

 

Business Process and Committee Risk Management :
  • Mr. Gurbachan Singh Dhingra
  • Mr. Abhijit Roy
  • Mr. Kamal Ranjan Das
  • Mr. Kanwardip Singh Dhingra
  • Mrs. Rishma Kaur
  • Mr. Srijit Dasgupta
  • Mr. Anil Bhalla
  • Mr. Subir Bose

 
  •  

Shareholders’ Committees

 

Share Transfer Committee

  • Mr. Abhijit Roy
  • Mr. Kamal Ranjan Das
  • Mr. Srijit Dasgupta
  • Mr. Anirussha Sen

 

 

Stakeholders’ Relationship and Investor Grievance Committee:
  • Mr. Kamal Ranjan Das
  • Mr. Gurbachan Singh Dhingra
  • Mr. Abhijit Roy

 

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on MARCH 2018

 

Category of Shareholder

No. of Shares

Percentage of Holding

(A) Promoter & Promoter Group

728144701

74.99

(B) Public

242841946

25.01

Grand Total

970986647

100.00

 

 

Statement showing shareholding pattern of the Promoter and Promoter Group

 

Category of Shareholder

No. of Shares

Percentage of Holding

A1) Indian

 

0.00

Individuals/Hindu undivided Family

32263861

3.32

MEETA DHINGRA

999999

0.10

VINU DHINGRA

7529568

0.78

GURBACHAN SINGH DHINGRA

2421888

0.25

KULDIP SINGH DHINGRA

6290247

0.65

YUVRANI RISHMA KAUR

251328

0.03

JESSIMA KUMAR

146496

0.02

DIPTI DHINGRA

131712

0.01

SUNAINA KOHLI

107520

0.01

ANSHNA SAWHNEY

107520

0.01

KANWARDIP SINGH DHINGRA

53760

0.01

KSD FAMILY TRUST

8312140

0.86

GBS DHINGRA FAMILY TRUST

5911683

0.61

Any Other (specify)

555224058

57.18

UK PAINTS INDIA PRIVATE LIMITED

486545399

50.11

CITLAND COMMERCIAL CREDITS LIMITED

30915659

3.18

WANG INVESTMENT FINANCE PRIVATE LIMITED

29810580

3.07

BIGG INVESTMENT AND FINANCE PRIVATE LIMITED

7952420

0.82

Sub Total A1

587487919

60.50

A2) Foreign

 

0.00

Any Other (specify)

140656782

14.49

JENSON & NICHOLSON (ASIA) LIMITED

140656782

14.49

Sub Total A2

140656782

14.49

A=A1+A2

728144701

74.99

 

Statement showing shareholding pattern of the Public shareholder

 

Category & Name of the Shareholders

No. of fully paid up equity shares held

Shareholding % calculated as per SCRR, 1957 As a % of (A+B+C2)

B1) Institutions

0

0.00

Mutual Funds/

14080509

1.45

Alternate Investment Funds

874944

0.09

Foreign Portfolio Investors

55667651

5.73

Financial Institutions/ Banks

999966

0.10

Insurance Companies

18896778

1.95

Any Other (specify)

47833771

4.93

Nalanda India Fund Limited

46719295

4.81

FIIs

1114476

0.11

Sub Total B1

138353619

14.25

B2) Central Government/ State Government(s)/ President of India

0

0.00

B3) Non-Institutions

0

0.00

Individual share capital upto INR 0.200 Million

73230676

7.54

Individual share capital in excess of INR 0.200 Million

1178741

0.12

Any Other (specify)

30123691

3.10

Bodies Corporate

18915379

1.95

Non-Resident Indian (NRI)

2386295

0.25

Clearing Members

409841

0.04

Unclaimed or Suspense or Escrow Account

1241435

0.13

IEPF ACCOUNT

5627335

0.58

Trusts

1543406

0.16

Sub Total B3

104533108

10.77

B=B1+B2+B3

242886727

25.01

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in the business of manufacturing and selling of paints. [Registered Activity]

 

 

Products :

Item Code No.

Product Description

20221

Paints and varnishes, enamels or

Lacquers

20111

organic and inorganic chemical compounds

 

 

Brand Names :
  • Silk,
  • Luxol
  • Weathercoat
  • Rangoli
  • Illusions
  • Jadoo

 

 

Agencies Held :

Not Divulged

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

Not Divulged

 

PRODUCTION STATUS NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

 

Reference :

Not Divulged

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Maximum Limit Dealt :

--

Experience :

--

Remark:

--

 

 

Customers :

 

Reference :

Not Divulged

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Maximum Limit Dealt :

--

Experience :

--

Remark:

--

 

 

No. of Employees :

2993 (Approximately)

 

 

Bankers :

Banker Name

DBS Bank Limited

Branch Address

--

Person Name (With Designation)

--

Contact Number

--

Name of Account Holder

--

Account Number

--

Account Since (Date/Year of Account Opening)

--

Average Balance Maintained (If Possible)

--

Credit Facilities Enjoyed (If any)

--

Account Operation

--

Remarks (If any)

--

 

  • Axis Bank Limited
  • Bank of Baroda
  • Central Bank of India
  • HSBC Bank Limited
  • HDFC Bank Limited
  • HSBC Limited
  • ICICI Bank Limited
  • JP Morgan Chase Bank, N.A.
  • Kotak Mahindra Bank Limited
  • Standard Chartered Bank
  • State Bank of India
  • The Bank of Tokyo - Mitsubishi UFJ, Limited
  • Yes Bank Limited

 

 

Facilities :

Secured Loan

31.03.2017

(INR in Million)

31.03.2016

(INR in Million)

Borrowings

 

 

From Banks

 

 

Cash credit (repayable on demand)

302.000

612.400

Buyers’ Credit (in foreign currency)

842.900

52.700

Total

1144.900

665.100

 

 

Note:

 

 

Cash Credits from banks are secured by way of first charge on book debts and current assets ranking pari passu between the lenders (first pari passu charge over entire current assets). Cash Credit is repayable on demand and carries interest at 8%-10% per annum (31-March-2016: 8%-11% per annum; 01-April-2015: 8.5%-14.5%)

 

The buyers’ credit is repayable in six months and carries interest at LIBOR +0.25% (31 March 2016: LIBOR +0.25%) and is secured by hypothecation of stocks and book debts, both present and future.

 

 

Auditors :

 

Name :

S.R. Batliboi and Company LLP

Chartered Accountants

Address :

22, Camac Street, Block C, 3rd Floor, Kolkata – 700016, West Bengal, India

Tel. No.:

91-33-66153400

Fax No.:

91-33-66153750

 

 

Memberships :

--

 

 

Collaborators :

--

 

 

Holding Company

U K Paints (India) Private Limited

 

 

Wholly Owned Subsidiary
  • Berger Jenson and Nicholson (Nepal) Private Limited
  • Beepee Coatings Private Limited
  • Berger Paints (Cyprus) Limited
  • Lusako Trading Limited

 

 

Wholly Owned Subsidiary of Beepee Coatings Private Limited

BJN Paints India Limited

 

 

Wholly Owned Subsidiary of Berger Paints (Cyprus) Limited

Berger Paints Overseas Limited

 

 

Wholly Owned Subsidiary of Lusako Trading Limited

Bolix S.A.

 

 

Wholly Owned Subsidiary of Bolix S.A.
  • BUILD-TRADE BIS sp. z o.o
  • Bolix UKRAINA sp.z o.o
  • Soltherm External Insulations Limited
  • Soltherm Insolations Thermique Exterieure (w.e.f July, 2016)

 

 

Joint Venture of the Company
  • Berger Becker Coatings Private Limited
  • Berger Nippon Paint Automotive Coatings Private Limited (Formerly known as BNB Coatings India Private Limted/BNB Coatings India Limited)

 

 

Fellow Subsidiary
  • Jenson and Nicholson (Asia) Limited
  • Berger Paints (Bangladesh) Limited
  • Citland Commercial Credits Limited
  • Wang Investment Finance Private Limited

 

 

Post-employment benefit plan of the Company
  • Berger Paints Provident Fund (Covered)
  • Berger Paints Officers (Non-Management Category) Superannuation Fund
  • Berger Paints Management Staff Superannuation Fund

 

 

Entity controlled by Key Managerial Personnel
  • Seaward Packaging Private Limited
  • Flex Properties Private Limited
  • Wazir Estates Private Limited
  • Kay Dee Farms Private Limited
  • Malibu Estate Private Limited
  • Bigg Investment and Finance Private Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2017

 

Authorised Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

1100000000

Equity Shares

INR 1/- each

INR 1100.000 Million

 

 

Issued Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

971078127

Equity Shares

INR 1/- each

INR 971.100 Million

 

Subscribed & Paid-up Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

970986647

Equity Shares

INR 1/- each

INR 971.000 Million

 

 

 

 

 

 

a) Reconciliation of the number of shares outstanding at the beginning and the end of the reporting period:

 

 

31.03.2017

Particular

No. of Shares held

INR in Million

At the beginning of the year

693477912

69.35

Add: Shares issued on exercise of Employee Stock Options

117570

0.01

Add: Bonus Shares issued and allotted during the year

277391165

27.74

At the end of the year

970986647

97.10

 

b) Terms/Rights attached to class of shares

 

The Company has only one class of Equity Shares having a par value of INR 1 each. Holder of each Equity Share is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

 

c) Equity Shares held by the Holding Company and/or the subsidiaries/associates of Holding Company :

 

Name of Shareholders

31.03.2017

 

 

No. of Shares held

U K Paints (India) Limited (Holding Company)

 

486545399

Jenson & Nicholson (Asia) Limited, UK

 

140656782

Citland Commercial Credits Limited

 

30915659

Wang Investment Finance Private Limited

 

29810580

Bigg Investment & Finance Private Limited

 

7952420

 

d) Details of Shareholders holding more than 5 percent of Equity Shares in the Company :

 

Name of Shareholders

31.03.2017

 

No. of Shares held

% holding

U K Paints (India) Limited (Holding Company)

486545399

50.11%

Jenson & Nicholson (Asia) Limited, UK

140656782

14.49%

Nalanda India Fund Limited

50749406

5.23%

 

As per of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

 

e) Shares reserved for issue under Employee Stock Options:

For details of shares reserved for issue under the Employee Stock Option Plan (ESOP) of the Company

 

f) Fully paid up equity shares allotted by way of bonus shares :

 

277391165 (March 31, 2016: NIL; April 1, 2015: NIL) Bonus shares were issued and allotted during the year by the Company to the eligible members of the Company holding ordinary shares of INR 1 each (ratio 2:5) by capitalizing INR 277.400 million out of the sum standing to the credit of Company’s Securities Premium Account. The above had been allotted to the shareholders of the Company on 19th July, 2016 and record date was fixed as 18th July, 2016

 

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

ABRIDGED BALANCE SHEET (STANDALONE)

 

SOURCES OF FUNDS

31.03.2017

31.03.2016

31.03.2015

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

971.000

693.500

693.300

(b) Reserves & Surplus

18250.400

15227.900

12234.700

(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)

19221.400

15921.400

12928.000

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

0.000

0.000

0.000

(b) Deferred tax liabilities (Net)

600.900

463.900

335.700

(c) Other long term liabilities

37.300

30.000

143.800

(d) long-term provisions

27.100

25.100

0.000

Total Non-current Liabilities (3)

665.300

519.000

479.500

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

1144.900

665.100

2884.900

(b) Trade payables

7275.100

6344.400

5091.200

(c) Other current liabilities

2078.900

1555.600

1064.000

(d) Short-term provisions

138.300

115.100

654.900

Total Current Liabilities (4)

10637.200

8680.200

9695.000

 

 

 

 

TOTAL

30523.900

25120.600

23102.500

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

8770.700

6951.600

6350.700

(ii) Intangible Assets

60.700

89.300

125.700

(iii) Capital work-in-progress

562.300

487.700

875.100

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

2103.500

1152.200

1092.600

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

137.100

155.100

326.700

(e) Other Non-current assets

480.000

582.600

1.400

Total Non-Current Assets

12114.300

9418.500

8772.200

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

3672.700

2992.200

1344.900

(b) Inventories

8841.700

6882.200

6465.000

(c) Trade receivables

4805.900

4614.600

4344.100

(d) Cash and cash equivalents

320.400

635.100

1411.500

(e) Short-term loans and advances

195.400

188.300

661.000

(f) Other current assets

573.500

389.700

103.800

Total Current Assets

18409.600

15702.100

14330.300

 

 

 

 

TOTAL

30523.900

25120.600

23102.500

 

 

PROFIT & LOSS ACCOUNT (STANDALONE)

 

 

PARTICULARS

31.03.2017

31.03.2016

31.03.2015

 

SALES

 

 

 

 

Income

46085.300

43059.100

38065.100

 

Other Income

486.700

362.000

341.900

 

TOTAL

46572.000

43421.100

38407.000

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

21112.500

19265.600

19232.300

 

Purchases of Stock-in-Trade

3900.000

3850.800

3276.400

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

(1192.800)

(240.000)

(247.300)

 

Employees benefits expense

2279.200

2037.600

1782.100

 

Excise Duty

4870.000

4481.000

0.000

 

Exceptional Items

(586.700)

0.000

0.000

 

Other expenses

8488.000

7588.000

9267.600

 

TOTAL

38870.200

36983.000

33311.100

 

 

 

 

 

Less

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

7701.800

6438.100

5095.900

 

 

 

 

 

Less

FINANCIAL EXPENSES

74.100

170.500

347.200

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

7627.700

6267.600

4748.700

 

 

 

 

 

Less

DEPRECIATION/ AMORTISATION

970.700

880.700

786.200

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

6657.000

5386.900

3962.500

 

 

 

 

 

Less

TAX

2192.500

1824.300

1302.200

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

4464.500

3562.600

2660.300

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

4.60

3.67

3.84

 

 

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2017

31.03.2016

31.03.2015

Current Maturities of Long term debt

NA

NA

NA

Cash generated from operations

5501.300

7097.600

4500.100

Net Cash flows from operating activities

3380.000

5355.500

3120.100

 

 

 

    QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2017

(Unaudited)

30.09.2017

 (Unaudited)

31.12.2017

 (Unaudited)

 

1st  Quarter

2nd Quarter

3RD Quarter

Unaudited

 

 

 

Net Sales

12624.900

11364.100

11909.100

Total Expenditure

10857.500

9544.200

9898.900

PBIDT (Excl OI)

1767.400

1819.900

2010.200

Other Income

102.500

166.600

91.100

Operating Profit

1869.900

1986.500

2101.300

Interest

7.900

52.800

55.200

Exceptional Items

NA

NA

NA

PBDT

1862.000

1933.700

2046.100

Depreciation

274.000

273.200

276.900

Profit Before Tax

1588.000

1660.500

1769.200

Tax

536.300

578.000

620.600

Provisions and contingencies

NA

NA

NA

Profit After Tax

1051.700

1082.500

1148.600

 

 

KEY RATIOS

 

EFFICIENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Average Collection Days

(Sundry Debtors / Income * 365 Days)

38.06

39.12

41.65

 

 

 

 

Account Receivables Turnover

(Income / Sundry Debtors)

9.59

9.33

8.76

 

 

 

 

Average Payment Days

(Sundry Creditors / Purchases * 365 Days)

106.16

100.18

82.56

 

 

 

 

Inventory Turnover

(Operating Income / Inventories)

0.87

0.94

0.79

 

 

 

 

Asset Turnover

(Operating Income / Net Fixed Assets)

0.82

0.86

0.69

 

LEVERAGE RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Debt Ratio

((Borrowing + Current Liabilities) / Total Assets)

0.35

0.35

0.42

 

 

 

 

Debt Equity Ratio

(Total Liability / Networth)

0.06

0.04

0.22

 

 

 

 

Current Liabilities to Networth

(Current Liabilities / Net Worth)

0.55

0.55

0.75

 

 

 

 

Fixed Assets to Networth

(Net Fixed Assets / Networth)

0.49

0.47

0.57

 

 

 

 

Interest Coverage Ratio

(PBIT / Financial Charges)

103.94

37.76

14.68

 

PROFITABILITY RATIOS

 

PARTICULARS

 

 

31.03.2017

31.03.2016

31.03.2015

Net Profit Margin

 (PAT / Sales) * 100)

%

9.69

8.27

6.99

 

 

 

 

 

Return on Total Assets

((PAT / Total Assets) * 100)

%

14.63

14.18

11.52

 

 

 

 

 

Return on Investment (ROI)

((PAT / Networth) * 100)

%

23.23

22.38

20.58

 

SOLVENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Current Ratio

(Current Assets / Current Liabilities)

1.73

1.81

1.48

 

 

 

 

Quick Ratio

((Current Assets – Inventories) / Current Liabilities)

0.90

1.02

0.81

 

 

 

 

G-Score Ratio Financial

(Networth / Total Assets)

0.63

0.63

0.56

 

 

 

 

G-Score Ratio Debt

(Debts / Equity Capital)

1.18

0.96

4.16

 

 

 

 

G-Score Ratio Liquidity

(Total Current Assets / Total Current Liabilities)

1.73

1.81

1.48

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

 

 

STOCK PRICES

 

Face Value

INR 1.00

Market Value

INR 271.95

 

 

FINANCIAL ANALYSIS

[all figures are in INR  Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Share Capital

693.300

693.500

971.000

Reserves & Surplus

12234.700

15227.900

18250.400

Net worth

12928.000

15921.400

19221.400

 

 

 

 

Long-term borrowings

0.000

0.000

0.000

Short term borrowings

2884.900

665.100

1144.900

Total borrowings

2884.900

665.100

1144.900

Debt/Equity ratio

0.223

0.042

0.060

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Sales

38065.100

43059.100

46085.300

 

 

13.120

7.028

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Sales

38065.100

43059.100

46085.300

Profit/ (Loss)

2660.300

3562.600

4464.500

 

6.99%

8.27%

9.69%

 

 

 

ABRIDGED BALANCE SHEET (CONSOLIDATED)

 

SOURCES OF FUNDS

 

 

31.03.2017

31.03.2016

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

971.000

693.500

(b) Reserves & Surplus

 

18044.600

14927.400

(c) Money received against share warrants

 

0.000

0.000

 

 

 

 

(d) Share Application money pending allotment

 

0.000

0.000

Total Shareholders’ Funds (1) + (2)

 

19015.600

15620.900

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

 

2620.800

2107.500

(b) Deferred tax liabilities (Net)

 

814.500

683.600

(c) Other long term liabilities

 

115.800

85.200

(d) long-term provisions

 

41.700

38.400

Total Non-current Liabilities (3)

 

3592.800

2914.700

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

1441.300

987.900

(b) Trade payables

 

7612.000

6698.700

(c) Other current liabilities

 

2444.400

2316.800

(d) Short-term provisions

 

297.200

234.200

Total Current Liabilities (4)

 

11794.900

10237.600

 

 

 

 

TOTAL

 

34403.300

28773.200

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

9502.000

7664.800

(ii) Intangible Assets

 

68.600

99.800

(iii) Capital work-in-progress

 

622.100

510.600

(iv) Intangible assets under development

 

0.000

0.000

(v) Goodwill Consolidation

 

1789.000

1864.600

(b) Non-current Investments

 

1048.600

476.200

(c) Deferred tax assets (net)

 

7.600

5.300

(d) Long-term Loan and Advances

 

137.100

155.100

(e) Other Non-current assets

 

550.300

602.200

Total Non-Current Assets

 

13725.300

11378.600

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

3672.700

2999.200

(b) Inventories

 

9354.700

7332.300

(c) Trade receivables

 

5781.400

5454.000

(d) Cash and cash equivalents

 

1024.500

1053.300

(e) Short-term loans and advances

 

113.300

47.400

(f) Other current assets

 

731.400

508.400

Total Current Assets

 

20678.000

17394.600

 

 

 

 

TOTAL

 

34403.300

28773.200

 

 

PROFIT & LOSS ACCOUNT (CONSOLIDATED)

 

 

PARTICULARS

 

31.03.2017

31.03.2016

 

SALES

 

 

 

 

Income

 

50504.500

46838.500

 

Other Income

 

545.400

346.800

 

TOTAL

 

51049.900

47185.300

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

 

22836.000

20754.500

 

Purchases of Stock-in-Trade

 

4337.900

4143.600

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

 

(1250.900)

(196.200)

 

Employees benefits expense

 

3067.200

2735.000

 

Excise duty on sale of goods

 

4982.000

4607.500

 

Share in Profit of Joint Ventures

 

(100.500)

(56.900)

 

Exceptional Items

 

(442.000)

0.000

 

Other expenses

 

9346.700

8346.700

 

TOTAL

 

42776.400

40334.200

 

 

 

 

 

Less

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

 

8273.500

6851.100

 

 

 

 

 

Less

FINANCIAL EXPENSES

 

162.200

272.800

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

 

8111.300

6578.300

 

 

 

 

 

Less

DEPRECIATION/ AMORTISATION

 

1080.500

986.500

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

 

7030.800

5591.800

 

 

 

 

 

Less

TAX

 

2294.200

1886.200

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX

 

4736.600

3705.600

 

 

 

 

 

 Add

OTHER COMPREHENSIVE INCOME

 

(189.400) 

(145.500) 

 

 

 

 

 

 

TOTAL COMPREHENSIVE INCOME FOR THE YEAR, NET OF TAX

 

 4547.200

3560.100 

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

 

4.88

3.82

 

 

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

Yes

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

Yes

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

 

 

FINANCIAL PERFORMANCE

 

During the financial year ended 31st March, 2017, the Company achieved net consolidated revenue from operations of INR 50504.500 million as against INR 46388.500 million in the previous year registering a growth of 8.9%. The profit before exceptional items, depreciation, interest and tax was INR 7731.000 million as against INR 6794.400 million in the previous year, recording an improvement of 13.8%. The profit before tax was INR 7030.800 (2015 –16 : INR 5591.800 million) and the profit after tax was INR 4736.600 million (2015 – 16 : INR 3705.600 million), representing an increase of 25.7% and 27.83% respectively. The consolidated profit before tax would be INR 6588.800 million (18% of growth) without considering the proportionate share of profit, being INR 442.000 million, arising out of the transfer of a business to BNPA.

 

 

The Exceptional Items in the statement for the standalone results above comprise a profit of INR 866.700 million on account of transfer of business and INR 280.000 million of impairment in the carrying value of investment in Berger Paints Cyprus Limited. The aforesaid impairment has no impact on consolidated results.

 

 

The Company’s paint division (the Business) relating to 4 wheeler passenger cars and SUVs, 3 wheelers and related ancillaries was transferred to BNB Coatings India Private Limited (now renamed, Berger Nippon Paint Automotive Coatings Private Limited or “BNPA), an existing joint venture between Berger Paints India Limited and Nippon Paint Automotive Coatings Company, Limited, Japan after the close of business hours of 30th June, 2016 on a slump sale basis at a consideration of INR 900.000 million, paid in cash. The annual turnover of the Business was about INR 290.000 million in the year ended 31st March, 2016. BNPA does not belong to the promoter group. By virtue of being a joint venture where Berger Paints India Limited holds 49% of the paid up share capital, BNPA may be deemed to be a related party and the transaction was done at an arm’s length basis. The “Exceptional Item” head in standalone results for the year ended 31st March, 2017 includes profit of INR 867.000 million on transfer of the business which is subject to tax. In June 2016, the Company had acquired 896700 equity shares of BNPA at the face value of INR 1000 each, aggregating INR 896.700 million to finance 49% of the acquisition of the “Business” and another business acquired from a third party by BNPA.

 

 

During the quarter ended 31st March, 2017 the Company has provided for impairment in the standalone financial statements, in the carrying value of its investment in its wholly owned subsidiary, Berger Paints Cyprus Limited (BPCL) on account of losses sustained by the ultimate wholly owned subsidiary Berger Paints Overseas Limited (BPOL), due to downturn in Russian economy, which were hitherto only reflected in the consolidated financial position of the Company. The Company had made an assessment of the fair value of the investments in Berger Paints Overseas Limited taking into account past business performance, prevailing business conditions and revised expectations about future performance. Based on the above factors and as matter of prudence, a provision of INR 280.000 million towards impairment of such investment has been recognised in the standalone accounts.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

PAINT INDUSTRY STRUCTURE AND DEVELOPMENT

 

Paint industry is classified into two broad categories viz., Decorative and Industrial. Decorative paints include higher end acrylic exterior and interior emulsions, medium range exterior and interior paints, low end distempers, wood coatings, cement paints, primers, thinners and putties – accounting for over 70% of the paint market in India and growing at a faster pace than Industrial paints. These are either water based or solvent based. Water based paints are increasingly preferred by customers because of superior aesthetics, durability and environmental reasons and constitute the fastest growing segment.

 

Industrial paints essentially comprise general industrial, automotive, protective and powder coatings. The Company is present in all these areas. In addition, there are smaller segments such as automotive refinish coatings, coil coatings and marine coatings. The Company is present in the coil coatings segment as well through its joint venture – Berger Becker Coatings Private Limited.

 

The growth prospects of the industry continue to be optimistic and the industry expects the demand to exceed INR 70,000 million by 2019-20. Considering the estimated per capita consumption of 3.34 Kg., this seems to be achievable and the entire value chain will benefit from the growth, providing employment opportunities to a large number of people spread all across the country. Much of the growth will depend on the overall consumption pattern and demand generation from the top, by Government initiatives and from below, through focused campaign for increased use, not only for visual effect but also for protection of assets. The industry expects the decorative paint market to witness a Compounded Annual Growth Rate (CAGR) of over 14 percent by value and the industrial paint market – a CAGR of about 9.5 percent. In the past, the industry is estimated to have grown at a CAGR of 12.9 percent from 2011-12 to 2014-15 in terms of value.

 

The demonetisation resulted in lower IIP growth rates and contraction in demand, particularly in the rural markets and impacted the paint industry as well. While there was a negative effect on the retail market, the effect on industrial markets depended on the ultimate customer of the consumer industries. However, the Company does not believe the variations to be of permanent nature and the markets, across all sectors, are showing signs of recovery from the initial impact. Market research specialists have mentioned that consumer demand peaked in the March 2017 quarter, recording the highest sales surge in daily groceries, home and personal products in the past two years. The Company is of the view that the intended transparency in monetary transactions would be beneficial for the economy including the real estate sector, which would, in turn, strengthen the paint industry in the long run.

 

The Company received the 1st Prize in National Energy Conservation from the Government of India, New Delhi in the paints and allied products sector and the CII Green Pro Award.

 

The Vallabh Vidya Nagar factory of the Company’s wholly owned subsidiary – Beepee Coatings Private Limited, received the Special Jury Award in Total Quality Management from CII, Gujarat.

 

 

COMPANY’S OPERATION

 

The Decorative Business continued to be the mainstay and recorded consistent growth in terms of volume and value. All other Businesses viz., General Industrial and Automotive, Protective Coatings and Powder also grew at a healthy clip. EBIDTA for all the Businesses were along the expected lines. This consistent growth is attributable to providing tailor-made products and services, chosen after careful attention to customer needs, higher sales of value added products, innovation at all levels, expansion of footprint in new geographies and market segments, better distribution and logistics and empowering of sales and service teams through specially deployed tools. The production capabilities continued to be expanded, restructured and reoriented to meet business requirements.

 

The Company believes that in a fast changing world, innovation is the key. To this extent, the Company introduced new premium products such as Weathercoat Anti Dustt with unique dust guard technology which doesn’t allow dust to settle on exterior walls, Silk Glamor, a luxury finish for interior walls with crystal reflective technique and Luxol XTRA Super Gloss Enamel, which provides a long lasting glossy finish with superior coverage. All the new products have generated considerable interest in the market. Easy Clean, known for its washability, continued to receive support from the customers. Others such as Bison, Butterfly, Walmasta, Luxol HiGloss and Tartaruga textured coatings performed well.

 

The Company’s construction chemicals business grew at a rapid pace. The new offerings included Waterproof Putty – with distinctive water resistance for mild dampness and Damp Stop for severe dampness. The efficacy of these products can be easily demonstrated.

 

In the wood coatings range, Imperia, a high end coating with polyurethane finish, Woodkeeper PU, an all-purpose exterior coating, Imperia a water based luxury polyurethane range for exteriors, interiors and floor coatings continued to receive market support.

 

Two years back, the Company had launched Express Painting™ – a hassle free solution for painting houses, which is 40 per cent faster than traditional painting, much cleaner and can be carried out at the same cost. Last year, the Company launched XP Advanced™, with specially formulated paints. Other than specifically designed paints, the XP™ services involve trained painters and carefully selected tools. The services have been focussed to engage extensively trained painters and contractors, to constantly communicate with the customers and provide a packaged solution to ensure maximum customer satisfaction and make Express Painting™ the preferred solution for Indian homes. This has been confirmed by the satisfaction surveys conducted by the Company.

 

The Company received the recognition for the Best Social Media Home and Living (Decor) Brand from Social Samosa. The Company also featured in the Super 50 Companies list issued by Forbes India. Its rank moved up from 117 to 103 in Business Today’s list of 500 India’s most valuable Companies for 2016.

 

The Company’s  General Industrial and Automotive Business comprise paints for general industrial purposes, two wheelers, commercial vehicles, tractors, etc. The Business continued to post growth both in terms of volume and value despite the dampening effect of demonetization on some of the customer industries such as two wheelers and commercial vehicles. This was possible through increase in business share with existing customers, more supplies to industry segments which continued to perform well, introduction of new products and shades based on identified customer needs and development of new customers. The Company received Special Appreciation Award for Customer Satisfaction from Tata Hitachi Limited. The Powder Coatings Business continued to perform well through increase in business from new customers and addition of existing customers.

 

The Company continues to be a leader in Protective Coatings area despite presence of a large number of competitors including global corporations in this segment. There was dampening of business in this area, particularly in regard to demands from the infrastructure sector. However, the Company’s business development efforts helped it to stay on course and add business both in terms of products and customers. The Company’s product portfolio helps it to supply to almost all the user industries including infrastructure, metals, oil and power, railways, steel and OEM.

 

The Company has entered into Memoranda of Understanding with :

 

- Rock Paint Company Limited (Rock Paint) of Japan for marketing of automotive refinish paints in India. The products were launched in the month of May, 2017. While the Company is already present in all areas of automotive paints in India, ROCK PAINT offers a wide range of high-quality, easy-to-use coatings suited to the diverse needs of today’s auto-refinish market. The companies are optimistic that the superior automotive refinish paints will have considerable demand in the automotive refinish market in India. The companies may discuss establishment of a joint venture in India at a later date. ROCK PAINT is a leading manufacturer of automotive refinish paints in Japan and is well known in the industry for the quality and utility of its products.

 

- Promat International Limited NV of Belgium (Promat) for cooperation in the field of passive fire protection and high performance insulation coatings in India and certain neighbouring territory. The MOU envisages production, distribution and supply of specialized fire resistant coatings which may range from lightweight and thin films to cement based wet mix products suitable for steel and concrete, offering various degrees of efficiency in fire resistance. Promat and the Company together have considerable strength in technical expertise, product, market knowledge and relevant skills and infrastructure and the depth of these attributes are expected to considerably benefit the territory’s market requirements in fire proof coatings. Promat is a USD 3 billion companies headquartered in Belgium.

 

- Chugoku Marine Paints Limited of Japan for cooperation and collaboration in the field of marine and related industrial paints in India. The MOU envisages joint efforts in marketing, supplying and purchasing marine related industrial paints. Subsequently, the parties have a view towards establishing a joint venture company. The companies look forward to jointly becoming leading players in marine coatings in India. Since its establishment in 1917, Chugoku Marine Paints Limited have uniquely developed marine paints as a core product and is one of the global leaders in the area.

 

 

All the factories of the Company operated at a satisfactory level and provided the required support to the Businesses. Improvement of productivity and quality, relentless focus on manufacturing cost and energy efficiency, sharing of intelligent practices and benchmarking them against global standards and total compliance with environment, health and safety standards and norms helped the factories to maintain an almost faultless supply to the Businesses. All the factories continued to enhance their capabilities by adding new products. Standardisation of new products and efficient manufacturing practices were the key to this success.

 

The declining trend in raw material costs reversed in the year with increases in certain major raw materials. Crude oil, which was USD 40 in the beginning of 2016-17, touched USD 55 a barrel at the end of the year. There were resultant effects on all raw materials which are dependent on crude prices. Prices of key raw materials such as titanium dioxide and those required for manufacture of resins (which are the foundation of solvent based paints) and emulsions (which are the binders for water based paints) increased substantially, impacting the cost of all products across the board. This necessitated some increase in prices of Decorative paints. Exploration of alternate sources for all major raw materials, informed and intelligent buying and effective negotiation continued to provide savings.

 

The Company recognises that in a competitive environment, innovation is the key. The Company continues to strengthen its R & D facilities and technological capabilities by adding suitable manpower and new equipment and interactions with academic institutions. The objective is to build a collaborative research oriented environment in not only the Company’s R & D Centre but across the manufacturing and product development centres throughout the Company’s operations and businesses. The Company’s employees participated in international symposiums and seminars. The Vice President – R & D received the Akzo Nobel Award for Excellence in Coatings Research and Promotion granted by the Society for Surface Protective Coatings – India. The Company’s R & D scientists also received the second prize in the Research Category from the Indian Paint Association.

 

 

FOCUS AND OUTLOOK FOR 2017-18

 

As mentioned in the section under “Opportunities and Threat”, the Government has announced various measures which will provide a fillip to the real estate sector, which is expected to maintain a double digit CAGR. Traditionally, the paint industry has been influenced by both GDP and IIP – which are likely to perform well. Most of all, increased urbanisation, better access to educational facilities and social media aided by internet and the country’s historical and deep founded sense of aesthetics prompt the demand for well painted houses and environmentally better products.

 

The Government of India along with its investment promotion agency, Invest India, are in discussion with around 300 Indian and foreign companies to channelize investments worth US$ 62 billion, which will help create over 1.7 million job opportunities in India. The Union Cabinet has approved INR 10,000 crore initial corpus for the Funds for Start-ups (FFS), established in June 2016. This too is likely to generate considerable employment.

 

As a result, the demand pull is likely to continue through the year. The Company recognises that the pattern will vary across regions and economic strata. The Company will continuously innovate to provide solutions which are suited to the needs of market segment in Decorative and Industrial. It is important to not only train but actually provide opportunities to trained persons to utilise their skills in areas where their expertise is needed. The Company will try to provide such opportunities in its various programmes under Express Painting and Prolinks. It will also engage information technology to the fullest possible extent in managing its business processes.

 

 

PROJECTS AND EHS

 

The Company has commenced commercial production of its paint and putty plants at Naltali, Nagaon, Assam on 30th March, 2017. The plant has an annual capacity of 48,000 KL/MT of water based paints, 24000 KL of solvent based paints, 14000 MT of resin and 24000 MT of wall putty.

 

The British Paints Division of the Company has commenced commercial production of its distemper and putty manufacturing facility in Nalbari near Guwahati on 29th March, 2017 with a capacity of 6600 KL / MT and 7,200 MT per annum respectively.

 

Both the plants have the latest environment protection and safety related measures. Finished goods warehouses having Automatic Storage and Retrieval System (ASRS) are on the verge of completion at Jammu and the Beepee Coatings Plant at Vallabh Vidya Nagar.

 

The newly constructed Automotive and General Industrial paints plant at Jejuri, near Pune, with a capacity of 4,800 KL/MT per annum, commenced production on 27th March, 2017.

 

The Company has set up a processing unit at Vallabh Vidya Nagar, Gujarat mainly for processing of automotive paints for Berger Nippon Paint Automotive Coatings Private Limited during the year. The capacity of the plant is 2400 KL per annum.

 

The Company is setting up an emulsion plant with a final capacity of 44160 metric tonnes per annum in Rishra, West Bengal, in phases. The implementation of the first phase will be completed in the year 2017-18.

 

At Rishra, the Company will also set up its first plant for producing colourants, vital ingredients for manufacturing paints, with a capacity of 2640 KL per annum. The plant is expected to start production in early 2018.

 

EHS practices are continuously improved across different operations. The EHS team is actively working to mitigate the organizational risks associated with the Environment-Health-Safety related to all aspects of Company operations. Safeguarding the environment, protection of people, property and health of the workforce is the primary focus.

 

 

CORPORATE INFORMATION

 

BPIL or the Company is a public limited company domiciled in India and is incorporated under the provisions of the Companies Act applicable in India. Its shares are listed on three stock exchanges in India. The Company is engaged in the manufacturing and selling of paints. The Company caters primarily to domestic market. The registered office of the Company is located at Berger House, 129 Park Street, Kolkata-700 017.

 

 

The financial statements were approved for issue in accordance with a resolution of the Board of Directors on May 30, 2017.

 

 

CONTINGENT LIABILITIES:

 

(INR in Million)

PARTICULARS

31.03.2017

i)              Claims against the Company not acknowledged as debts: ` in

 

Income Tax

158.300

Sales Tax

273.300

Excise Duty

272.800

Total

704.400

ii)            Outstanding Bank guarantees

342.400

iii)            Corporate guarantees issued by the Company to certain banks for loans taken by some of its subsidiaries and amount outstanding as at the year end

2531.800

 

 

 

INDEX OF CAHREGS:

 

SNO

SRN

CHARGE ID

CHARGE HOLDER NAME

DATE OF CREATION

DATE OF MODIFICATION

DATE OF SATISFACTION

AMOUNT

ADDRESS

1

G22646756

100060623

ST HELEN'S NOMINEES INDIA PRIVATE LIMITED

11/11/2016

-

-

1181757500.0

1st Floor, CRESCENZO Building, C-38/39,"G" Block, Bandra Kurla Complex,Bandra (East)MumbaiMa400051IN

2

C58437807

10559827

BNP Paribas

16/03/2015

30/06/2015

-

1299649500.0

20 Collyer Quay,#01-01, Tung Centre,SingaporeNA049319SG

3

A60860749

10159037

HDFC BANK LIMITED

18/03/2009

-

-

580000000.0

HDFC BANK HOUSESENAPATI BAPAT MARGLETTERLOWER PAREL WMUMBAIMH400013IN

4

A52226917

10132650

CORPORATION BANK

16/10/2008

-

-

270000000.0

DHARMTOLLA BRANCH8 LENIN SARANIKOLKATAWB700013IN

5

Y10357930

90250293

PUNJAB NATIONAL BANK

06/08/1998

30/03/2000

-

40000000.0

PARK STREET BRANCH44 PARK STREETCALCUTTAWB700017IN

6

Y10357846

90250209

INDUSTRIAL RECONSTRUCTION BANK OF INDIA

12/03/1997

-

-

50000000.0

19; NETAJI SUBHASD ROADCALCUTTAWB700001IN

7

Y10357769

90250132

SMALL INDUSTRIES DEVELOPMENT BANK OF INDA

09/01/1996

23/07/1996

-

100000000.0

VIKAS DEEP22 STATION ROADLUCKNOWUP226019IN

8

Y10358755

90251118

UNION BANK OF INDIA

08/11/1995

05/02/1997

-

18000000.0

INDUSTRIAL FINANCE BRANCH1/1; CAMAC STREETCALCUTTAWB700016IN

9

Y10357750

90250113

STATE BANK OF INDIA

15/09/1995

-

-

20000000.0

COMMERCIAL BRANCH24; PARK STREETCALCUTTAWB700016IN

10

Y10357666

90250029

PUNJAB & SIND BANK

22/06/1994

-

-

27500000.0

8 OLD COURT HOUSE STREETCALCUTTAWB700001IN

 

 

FIXED ASSETS

 

Tangible assets

  • Land
  • Building
  • Plant and Machinery
  • Furniture and Fittings
  • Computer and Office Equipment
  • Motor Cars and Vehicles

 

Intangible assets

 

  • Computer Software

 

 

UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED AND NINE MONTHS DECEMBER 31, 2017

 

[INR IN MILLION]

 

PARTICULARS

3 Months

9 Months

 

31.12.2017

30.09.2017

31.12.2017

 

[Unaudited]

[Unaudited]

[Unaudited]

1. Income from Operations

 

 

 

Net Sales/income from operations

11909.100

11364.100

35898.100

Other Operating Income

91.100

166.600

360.200

Total income from operations (net)

12000.200

11530.700

36258.300

 

 

 

 

Expenses

 

 

 

Cost of materials consumed

5694.500

5491.500

16869.000

Purchases of stock-in trade

1010.200

835.500

2899.400

Changes in inventories of finished goods. work-in-progress and stock in trade

290.700

230.800

693.100

Employee benefits expense

619.500

665.900

1919.500

Depreciation and Amortization Expenses

276.900

273.200

824.100

Other Expenses

2284.000

2320.500

6786.800

Finance Costs

55.200

52.800

115.900

Excise Duty

0.000

0.000

1132.800

Total expenses

10231.000

9870.200

31240.600

Profit/ (Loss) from ordinary activities after finance cost but before exceptional items

1769.200

1660.500

5017.700

Exceptional items

0.000

0.000

0.000

Profit/ (Loss) from ordinary activities before tax

1769.200

1660.500

5017.700

Tax expenses

620.600

578.000

1734.900

Net Profit / (Loss) from ordinary activities after tax

1148.600

1082.500

3282.800

Extraordinary item (net of tax expense)

0.000

0.000

0.000

Net Profit / (Loss) for the period

1148.600

1082.500

3282.800

Comprehensive Income

11.000

(1.200)

6.000

Net Profit/ (Loss) after taxes, minority interest and share of profit/(loss) of associates

1159.600

1081.300

3288.800

 

 

 

 

Paid up equity share capital (Face Value of INR 1/-each)

971.000

971.000

971.000

Reserve excluding Revaluation Reserve as per Balance Sheet of previous accounting year

 

 

 

Earnings per share (before extraordinary items) of INR 10/- each (not annualized):

 

 

 

(a) Basic

1.18

1.11

3.38

(b) Diluted

1.18

1.11

3.38

 

 

Note:

 

  1. The above results have been prepared in accordance with Indian Accounting Standards ('IND AS') notified under section 133 of the Companies Act, 2013 read together with the Companies (Indian Accounting Standards) Rules, 2015, as amended.
  2. As per requirements of SEBI ( Listing Obligations & Disclosure Requirements) Regulations, 2015 and Indian Accounting Standards (IND AS), revenue for the period up to June 30, 2017 is grossed up for Central Exise Duty . With introduction of Goods and Services Tax (GST) with efffect from July 1, 2017, Central Excise ceased to exist from that date . As mandated by IND AS 18 on Revenue and Schedule III of Companies Act 2013, GST is not a part of Revenue and hence period after June 30, 2017, is not comparable to the periods prior to that date. To facilitate comparison, the following additional information is being provided -For Table, kindly refer Corporate Announcements.
  3. The above results, as reviewed by the Audit Committee, were approved and taken on record by the Board of Directors at its meeting held on 6th February, 2018. These results have been subjected to a 'Limited Review' by the statutory auditors of the Company.
  4. Exceptional items comprise :
  5. profit of INR 866.700 million on transfer of the Company's paint division relating to 4 wheeler passenger

cars and SUV's, 3 wheeler and related ancillaries 

- impairment provision of INR 280.000 million on the carrying value of investment in a wholly owned subsidiary.

  1. The Company is engaged in the business of manufacturing paints in India. There are no reportable segment(s) other than "Paints", which singly or in the aggregate qualify for separate disclosure as per provisions of the relevant IND AS 108 "operating segments 11. The Management does not believe that the information about segments which are not reportable under IND AS would be useful to the users of these financial statements.
  2. During the quarter ended December 31, 2017 , the Company has allotted 44,781 equity shares of INR 1/- each fully paid up to its eligible employees on their exercise of the options granted to them earlier, pursuant to Employees Stock Option Plan 2016.
  3. During the quarter ended December 31, 2017, the Company has granted 161,184 Stock Options to the eligible employees pursuant to Employees Stock Option Plan 2016.
  4. The Board of Directors of the Company at its meeting held on 14th April, 2017, inter alia, approved the Scheme of Amalgamation of BJN Paints India Limited ('the Transferor Company'), a wholly owned subsidiary of Beepee Coatings Private Limited (a wholly owned subsidiary of the Company) with the Company with effect from 1st April, 2017 ('Appointed Date'), pursuant to Sections 230 and 232 of the Companies Act, 2013. The Scheme of Amalgamation will be recognised in the books of account on receipt of necessary approvals.
  5. The figures of previous periods have been regrouped, wherever required.

 

 

 

 

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 records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                           None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency

 
Unit

INR

US Dollar

1

INR 65.22

UK Pound

1

INR 92.77

Euro

1

INR 80.34

 

 

INFORMATION DETAILS

 

Information Gathered by :

GYT

 

 

Analysis Done by :

VRS

 

 

Report Prepared by :

MTN

 

 

SCORE FACTORS

 

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

 

 

RATING EXPLANATIONS

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

 

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 are as follows:

 

·         Financial condition covering various ratios

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.