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|
MIRA INFORM REPORT
|
Report No. : |
494982 |
|
Report Date : |
28.02.2018 |
IDENTIFICATION DETAILS
|
Name : |
ASIAN PAINTS LIMITED (w.e.f. 02.06.2005) |
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|
|
|
Formerly Known
As : |
ASIAN PAINTS INDIA LIMITED |
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Registered
Office : |
6 - A, Shanti Nagar, Santacruz (East), Mumbai – 400055, Maharashtra |
|
Tel. No.: |
91-22-56958000/
39818000/ 39818990/ 39818387 |
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|
Country : |
India |
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Financials (as
on) : |
31.03.2017 |
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Date of
Incorporation : |
24.10.1945 |
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Com. Reg. No.: |
11-004598 |
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Capital
Investment / Paid-up Capital : |
INR 959.198 Million |
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|
|
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CIN No.: [Company Identification
No.] |
L24220MH1945PLC004598 |
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IEC No.: [Import-Export Code No.] |
0388010789 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMA00665A /
NGPA00953B / PNEA01615F / MUMA08600E |
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|
|
|
GSTN : [Goods & Service Tax
Registration No.] |
Not Divulged |
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|
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PAN No.: [Permanent Account No.] |
AAACA3622K |
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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 the business of manufacturing, selling and distribution of paints, coatings, products related to home décor, bath fittings and providing related services. (Registered activity) |
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No. of Employees
: |
5952 (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 |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject was incorporated in the year 1945 and it is a largest paint
company in India. About 80% of the company’s revenue comes from the
decorative paints segment and the remaining from the industrial paints
segment and overseas segment. It is a manufacturer, seller and distributor of Paints, Coatings,
products related to Home Décor, Bath Fittings and providing of related
services. As per the financial record of 2017, the revenue of the company has
increased by 7.95% along with along with fair profit margin of 12.30%. The robust financial profile of the company marked by healthy networth
base along with strong debt coverage indicators due to low debt balance sheet
profile. The company has its share price trading at round INR 1101.25 against
the face value (FV) of INR 01 on BSE as 28th February, 2018. The rating takes into consideration the subject’s long track record of
business operations along with extensive experience of its promoters. Rating continue to reflect company’s leadership position in the
domestic paints sector. However, these strength are partially offset by susceptibility of
profitability to volatility in raw material prices in the industrial paint
segment and unfavourable gap between trade payables and trade receivables. Business is active. Payments seems to be regular. In view of aforesaid, the company can be considered for good 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 |
|
Rating |
Long Term = AAA |
|
Rating Explanation |
Highest degree of safety and Carry lowest credit risk. |
|
Date |
27.07.2017 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short Term = A1+ |
|
Rating Explanation |
Very strong degree of safety and Carry lowest credit risk. |
|
Date |
27.07.2017 |
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
31-03-2016.
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 28.02.2018
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 BY
|
Name : |
Mr. Ashwin |
|
Designation : |
Director |
|
Contact No.: |
91-9819536082 |
|
Date : |
27.02.2018 |
Mobile No.: 91-22-62181000 – Ringing
LOCATIONS
|
Registered Office : |
6 - A, Shanti Nagar, Santacruz (East), Mumbai – 400055, Maharashtra,
India |
|
Tel. No.: |
91-22-56958000/
39818000/ 39818990/ 39818387 |
|
Fax No.: |
91-22-39818888 |
|
E-Mail : |
compliance.officer@asianpaints.com
|
|
Website : |
|
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|
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|
Factory : |
Plot No. 3/ 2, MIDC,
Taloja, Raigad - 410 208,
Plot No. 2702, GIDC Industrial Area, Ankleshwar - 393 002,
B-5 and 10, Sipcot
Industrial Complex, Cuddalore - 607 005, Tamil Nadu, |
DIRECTORS
As on 31.03.2017
|
Name : |
Mr. Ramadorai Subramanian |
|
Designation : |
Director |
|
Address : |
Flat No.1, First Floor, Wyoming Little Gibbs Road, Malabar
Hill, Mumbai – 400006, Maharashtra, India |
|
Date of Appointment : |
26.09.2009 |
|
DIN No.: |
00000002 |
|
|
|
|
Name : |
Mr. Ashwin Chimanlal Choksi |
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Designation : |
Chairman and Managing Director |
|
Address: |
11/A, Jeevan Asha 60/A, Peddar Road, Mumbai – 400026, Maharashtra, India |
|
Qualification : |
M. Com. |
|
Date of Appointment : |
01.01.1965 |
|
DIN No.: |
00009095 |
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|
|
|
Name : |
Mr. Ashwin Suryakant Dani |
|
Designation : |
Vice Chairman and Managing Director |
|
Address: |
Home Villa, 48, Krishna Sanghi Path, Mumbai - 400007, Maharashtra, India |
|
Qualification : |
B. Sci (Hons.), B. Sci (Tech.), M.S. |
|
Date of Appointment : |
01.10.1968 |
|
DIN No.: |
00009126 |
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|
|
|
Name : |
Mr. Abhay Arvind Vakil |
|
Designation : |
Additional Director |
|
Address: |
Geetanjali, 9th Gamadia Road, Off Peddar Road, Mumbai - 400026, Maharashtra, India |
|
Date of Appointment : |
22.07.2014 |
|
DIN No.: |
00009151 |
|
|
|
|
Name : |
Mr. Mahendra Chimanlal
Choksi |
|
Designation : |
Director |
|
Address: |
C - 1801/1802, Beaumonde, Appasaheb Marathe Marg, Mumbai - 400025, Maharashtra, India |
|
Date of Appointment : |
27.11.1992 |
|
DIN No.: |
00009367 |
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|
|
|
Name : |
Mr. Deepak Madhav Satwalekar |
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Designation : |
Director |
|
Address: |
Flat No. 401, 4th Floor, The Orchid, 12th Road, Plot No. 252, Near Madhu Park, Khar (West), Mumbai - 400052, Maharashtra, India |
|
Date of Appointment : |
30.05.2000 |
|
DIN No.: |
00009627 |
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|
|
|
Name : |
Mr. Mahendra Mangaldas Shah |
|
Designation : |
Director |
|
Address: |
3A, Darbhanga Mansion, 12, Carmichael Road, Mumbai - 400026, Maharashtra, India |
|
Date of Appointment : |
06.06.2001 |
|
DIN No.: |
00009786 |
|
|
|
|
Name : |
Dr. Swaminathan
Sivaram |
|
Designation : |
Additional Director |
|
Address: |
Apartment No. 10 , Gulmohar Glory-5, Gulmohar Park ITI Road Aundh, Pune - 411007, Maharashtra, India |
|
Date of Appointment : |
06.06.2001 |
|
DIN No.: |
00009900 |
|
|
|
|
Name : |
Mr. Seshasayee Ramaswami |
|
Designation : |
Additional Director |
|
Address : |
Krishna, 20 Luz Avenue, II Street, Mylapore, Chennai –
600004, Tamilnadu, India |
|
Date of Appointment : |
23.01.2017 |
|
DIN No.: |
00047985 |
|
|
|
|
Name : |
Mrs. Amrita Amar Vakil |
|
Designation : |
Director |
|
Address: |
Geetanjali, 9 A Gamadia Road, Off Peddar Road, Mumbai - 400026, Maharashtra, India |
|
Date of Appointment : |
14.05.2014 |
|
DIN No.: |
00170725 |
|
|
|
|
Name : |
Mr. Mahendra Kumar Sharma |
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Designation : |
Additional Director |
|
Address: |
192 Centrum Towers Barkhat Ali Road, Near Wadala Flyover Wadala East, Mumbai - 400037, Maharashtra, India |
|
Date of Appointment : |
25.10.2012 |
|
DIN No.: |
00327684 |
|
|
|
|
Name : |
Mr. Malav Ashwin Dani |
|
Designation : |
Director |
|
Address : |
Home Villa, 48 Krishna Sanghi Path Gamdevi Mumbai 400007
MH IN |
|
Date of Appointment : |
26.06.2014 |
|
DIN No.: |
01184336 |
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|
|
|
Name : |
Mr. Kanwar Bir Singh Anand |
|
Designation : |
Managing Director and Chief Executive Officer |
|
Address : |
251, Kalpataru Heights, Sane Guruji Marg, Jacob Circle,
Mumbai – 400011, Maharashtra, India |
|
Date of Appointment : |
01.04.2012 |
|
DIN No.: |
03518282 |
|
|
|
|
Name : |
Mrs. Vibha Paul
Rishi |
|
Designation : |
Additional Director (w.e.f. 14th May, 2014) |
|
Address: |
812 Aralias, 12th Floor, Block - 8, Golf Link, DLF City - V, Gurugram - 122002, Haryana, India |
|
Date of Appointment : |
14.05.2014 |
|
DIN No.: |
05180796 |
KEY EXECUTIVES
|
Name : |
Mr. Jayesh Tulsidas Merchant |
|
Designation : |
Chief Finance Officer and Company Secretary |
|
Address : |
4 Sai Manjil 18, Altamount Road, Mumbai – 400026,
Maharashtra, India |
|
Date of Appointment : |
15.01.2003 |
|
PAN No.: |
AAEPM8808Q |
|
|
|
|
Name : |
Mr. Kanwar Bir Singh Anand |
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Designation : |
Chief Executive Officer |
|
Address : |
251, Kalpataru Heights, Sane Guruji Marg, Jacob Circle,
Mumbai – 400011, Maharashtra, India |
|
Date of Appointment : |
01.04.2012 |
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PAN No.: |
AABPA6586A |
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|
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|
EXECUTIVE COUNCIL
MEMBERS |
|
|
Name : |
Amit Syngle |
|
Designation : |
President - Sales & Marketing, R&T and Home Improvement |
|
|
|
|
Name : |
Manish Choksi |
|
Designation : |
President - International Business Unit, IT, Supply Chain and Chemicals |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on December 2017
|
Category of
shareholder |
No.
of fully paid up equity shares held |
Shareholding
as a % of total no. of shares |
|
|
(A) Promoter & Promoter Group |
506384482 |
52.79 |
|
|
(B) Public |
452813308 |
47.21 |
|
|
Grand
Total |
959197790 |
100.00 |
|
Statement showing shareholding pattern of the Promoter
and Promoter Group
|
Category of
shareholder |
No.
of fully paid up equity shares held |
Shareholding
as a % of total no. of shares (calculated as per SCRR, 1957)As a % of
(A+B+C2) |
|
|
A1) Indian |
0.00 |
|
|
|
Individuals/Hindu
undivided Family |
102208177 |
10.66 |
|
|
AASHAY ASHISH CHOKSI |
125380 |
0.01 |
|
|
AMI MANISH CHOKSI |
472200 |
0.05 |
|
|
ANAY RUPEN CHOKSI |
130500 |
0.01 |
|
|
ASHISH ASHWIN CHOKSI |
880840 |
0.09 |
|
|
ASHISH ASHWIN CHOKSI KARTA FOR ASHISH
ASHWIN CHOKSI HUF |
5620 |
0.00 |
|
|
ASHWIN CHIMANLAL CHOKSI |
419060 |
0.04 |
|
|
ASHWIN CHIMANLAL CHOKSI KARTA FOR ASHWIN
CHIMANLAL CHOKSI HUF |
366640 |
0.04 |
|
|
BINITA ASHISH CHOKSI |
131700 |
0.01 |
|
|
DRUHI ASHISH CHOKSI |
100000 |
0.01 |
|
|
JIGISH SHAILESH CHOKSI |
1995180 |
0.21 |
|
|
MAHENDRA CHIMANLAL CHOKSI KARTA FOR
MAHENDRA CHIMANLAL CHOKSI HUF |
539800 |
0.06 |
|
|
MAHENDRA CHIMANLAL CHOKSI |
1656380 |
0.17 |
|
|
MANISH MAHENDRA CHOKSI |
2381040 |
0.25 |
|
|
MANISH MAHENDRA CHOKSI KARTA FOR MANISH
MAHENDRA CHOKSI HUF |
7500 |
0.00 |
|
|
NYSHA RUPEN CHOKSI |
102750 |
0.01 |
|
|
PRAFULLIKA SHAILESH CHOKSI |
2142560 |
0.22 |
|
|
RHEA MANISH CHOKSI |
702000 |
0.07 |
|
|
RICHA MANISH CHOKSI |
180450 |
0.02 |
|
|
RITA MAHENDRA CHOKSI |
980000 |
0.10 |
|
|
RUPAL ANANT BHAT |
1923770 |
0.20 |
|
|
RUPEN ASHWIN CHOKSI |
928607 |
0.10 |
|
|
SHAILESH CHIMANLAL CHOKSI |
2591210 |
0.27 |
|
|
SHAILESH CHIMANLAL CHOKSI KARTA FOR SHAILESH
CHIMANLAL CHOKSI HUF |
1749690 |
0.18 |
|
|
URVASHI ASHWIN CHOKSI |
838110 |
0.09 |
|
|
VISHAL SHAILESH CHOKSI |
2951220 |
0.31 |
|
|
ASHWIN RAMANLAL GANDHI |
4325790 |
0.45 |
|
|
ASHWIN SURYAKANT DANI |
1239870 |
0.13 |
|
|
ASHWIN SURYAKANT DANI KARTA FOR ASHWIN
SURYAKANT DANI HUF |
845000 |
0.09 |
|
|
CHANDANBEN CHHOTALAL SHAH |
20000 |
0.00 |
|
|
HASIT ASHWIN DANI |
3956800 |
0.41 |
|
|
HASIT ASHWIN DANI KARTA FOR HASIT ASHWIN
DANI HUF |
48000 |
0.01 |
|
|
HIREN ASHWIN GANDHI |
1589300 |
0.17 |
|
|
INA ASHWIN DANI |
515920 |
0.05 |
|
|
ISHWARA HASIT DANI |
410710 |
0.04 |
|
|
JALAJ ASHWIN DANI |
1600200 |
0.17 |
|
|
MALAV ASHWIN DANI |
3305510 |
0.34 |
|
|
MEGHNA SATYEN GANDHI |
75000 |
0.01 |
|
|
MUDIT JALAJ DANI |
159800 |
0.02 |
|
|
SATYEN ASHWIN GANDHI |
1608880 |
0.17 |
|
|
SHUBHLAKSHMI HASIT DANI |
59500 |
0.01 |
|
|
SMITI JALAJ DANI |
139110 |
0.01 |
|
|
VAIBHAVI HIREN GANDHI |
75000 |
0.01 |
|
|
VITA J DANI |
435260 |
0.05 |
|
|
ABHAY ARVIND VAKIL KARTA FOR ABHAY ARVIND
VAKIL HUF |
2076820 |
0.22 |
|
|
ABHAY ARVIND VAKIL |
23288200 |
2.43 |
|
|
ABHAY ARVIND VAKIL KARTA FOR VAKIL HUF |
3103290 |
0.32 |
|
|
AMAR ARVIND VAKIL |
10918980 |
1.14 |
|
|
AMAR ARVIND VAKIL KARTA FOR AMAR VAKIL HUF |
2112190 |
0.22 |
|
|
AMRITA AMAR VAKIL |
2566680 |
0.27 |
|
|
ASHA SUBHASH GUJARATHI |
1423400 |
0.15 |
|
|
BHAIRAVI ABHAY VAKIL |
2247000 |
0.23 |
|
|
DIPIKA AMAR VAKIL |
2026130 |
0.21 |
|
|
NEHAL ABHAY VAKIL |
2371280 |
0.25 |
|
|
RAGINI VARUN VAKIL |
5000 |
0.00 |
|
|
VARUN AMAR VAKIL |
2230590 |
0.23 |
|
|
VIVEK ABHAY VAKIL. |
3126760 |
0.33 |
|
|
Any Other
(specify) |
404176305 |
42.14 |
|
|
CASTLE INVESTMENT & INDUSTRIES PRIVATE
LIMITED |
15457470 |
1.61 |
|
|
CENTAURUS TRADING AND INVESTMENTS PVT LTD |
7408940 |
0.77 |
|
|
DOLI TRADING AND INVESTMENTS PRIVATE
LIMITED |
9363440 |
0.98 |
|
|
ELF TRADING & CHEMICALS MANUFACTURING
LIMITED |
2108160 |
0.22 |
|
|
JALDHAR INVESTMENTS AND TRADING COMPANY
PVT LTD |
12428250 |
1.30 |
|
|
LYON INVESTMENT & INDUSTRIES PRIVATE
LIMITED |
14342060 |
1.50 |
|
|
RUPEN INVESTMENT & INDUSTRIES PRIVATE
LIMITED |
18849825 |
1.97 |
|
|
SATYADHARMA INVESTMENTS AND TRADING CO PVT
LTD. |
18334280 |
1.91 |
|
|
SUDHANAVA INVESTMENTS AND TRADING CO PVT
LTD |
19001760 |
1.98 |
|
|
TRU TRADING AND INVESTMENTS PVT LIMITED |
12176500 |
1.27 |
|
|
DANI FINLEASE LIMITED |
10930 |
0.00 |
|
|
GEETANJALI TRADING AND INVESTMENTS PRIVATE
LIMITED |
49267440 |
5.14 |
|
|
GUJARAT ORGANICS LTD |
22810730 |
2.38 |
|
|
HIREN HOLDINGS PRIVATE LIMITED |
4152310 |
0.43 |
|
|
ISIS HOLDING AND TRADING COMPANY PRIVATE
LIMITED |
52884120 |
5.51 |
|
|
RAYIRTH HOLDING AND TRADING COMPANY PVT
LTD |
1329500 |
0.14 |
|
|
SMITI HOLDING AND TRADING COMPANY PRIVATE
LIMITED |
54084120 |
5.64 |
|
|
ASTEROIDS TRADING AND INVESTMENTS PRIVATE
LIMITED |
10818530 |
1.13 |
|
|
ELCID INVESTMENTS LIMITED |
28313860 |
2.95 |
|
|
JALAJ TRADING & INVESTMENT COMPANY
PRIVATE LIMITED |
10776620 |
1.12 |
|
|
LAMBODAR INVESTMENTS AND TRADING COMPANY
LIMITED |
6015130 |
0.63 |
|
|
MURAHAR INVESTMENTS AND TRADING COMPANY
LIMITED |
5743670 |
0.60 |
|
|
NEHAL TRADING AND INVESTMENTS PRIVATE
LIMITED |
11102530 |
1.16 |
|
|
SUPTASWAR INVESTMENTS AND TRADING CO LTD |
6558310 |
0.68 |
|
|
UNNATI TRADING AND INVESTMENTS PRIVATE
LIMITED |
10472600 |
1.09 |
|
|
VIKATMEV CONTAINERS LTD |
111600 |
0.01 |
|
|
DANI CHARITABLE FOUNDATION |
253620 |
0.03 |
|
|
Sub Total A1 |
506384482 |
52.79 |
|
|
A2) Foreign |
0.00 |
|
|
|
A=A1+A2 |
506384482 |
52.79 |
|
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/ |
19861416 |
2.07 |
|
|
Alternate
Investment Funds |
90000 |
0.01 |
|
|
Financial
Institutions/ Banks |
1044778 |
0.11 |
|
|
Insurance
Companies |
59699227 |
6.22 |
|
|
Life Insurance Corporation of
India |
53253621 |
5.55 |
|
|
Any
Other (specify) |
167508145 |
17.46 |
|
|
FII |
167508145 |
17.46 |
|
|
Sub
Total B1 |
248203566 |
25.88 |
|
|
B2)
Central Government/ State Government(s)/ President of India |
0 |
0.00 |
|
|
Central
Government/ State Government(s)/ President of India |
1060681 |
0.11 |
|
|
Sub
Total B2 |
1060681 |
0.11 |
|
|
B3)
Non-Institutions |
0 |
0.00 |
|
|
Individual
share capital upto INR 0.200 Million |
117073701 |
12.21 |
|
|
Individual
share capital in excess of INR 0.200 Million |
5550704 |
0.58 |
|
|
NBFCs
registered with RBI |
67011 |
0.01 |
|
|
Any
Other (specify) |
80857645 |
8.43 |
|
|
Bodies Corporate |
64367869 |
6.71 |
|
|
Teesta Retail Private Limited |
46987850 |
4.90 |
|
|
Foreign Individuals |
12690356 |
1.32 |
|
|
Trusts |
3799420 |
0.40 |
|
|
Sub
Total B3 |
203549061 |
21.22 |
|
|
B=B1+B2+B3 |
452813308 |
47.21 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the business of manufacturing, selling and distribution of paints, coatings, products related to home décor, bath fittings and providing related services. (Registered activity) |
|
|
|
|
Products : |
|
|
|
|
|
Brand Names : |
Not Divulged |
|
|
|
|
Agencies Held : |
Not Divulged |
|
|
|
|
Exports : |
Not Divulged |
|
|
|
|
Imports : |
Not Divulged |
|
|
|
|
Terms : |
Not Divulged |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
5952 (Approximately) |
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Bankers : |
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Facilities : |
Note: Long-term
Borrowings: ^ The Company had partnered with National Skill Development Corporation (NSDC) for undertaking a painter skill development project. Under the arrangement, the Company was granted a financial assistance of INR 3.100 Million from NSDC disbursable in five tranches. The assistance was secured by a bank guarantee provided by the Company to NSDC on the outstanding amount. The assistance carried an interest @ 6% p.a. and was repayable over a period of nine years including a moratorium of three years on the principal amount, starting from the date of first disbursement. During the year 2014-15, the Company received INR 0.06 crores as per the schedule of disbursement and no amounts were repayable during the next one year. During the year 2016-17, the loan was repaid on 26th September, 2016. # Interest free loan from The Pradeshiya Industrial Corporation of U.P. Limited (PICUP) under Sales Tax Deferment Scheme of Government of Uttar Pradesh was secured by a first charge on the Company’s immovable properties of the paint plant at Kasna and by way of hypothecation of all movable properties at the above location. This interest free loan had a deferment period of 10 years and was repayable in 9 yearly installments starting from May, 2007 as per repayment schedule. Out of the total loan of INR 306.000 Million, the Company had already repaid INR 273.600 Million till 31st March, 2015 and the balance amount of INR 32.400 Million was paid during the previous year by 31st May, 2015. Pursuant to the repayment of loan, the charge on Company’s immovable properties was released. ## The Company is eligible to avail interest free loan in respect of 50% of VAT paid within Haryana on the sale of goods produced at Rohtak plant for a period of 7 financial years beginning from April, 2010. For the year ended 31st March, 2011, 31st March, 2012 and 31st March, 2013, the Company has already received the interest free loan of INR 34.100 Million, INR 59.000 Million and INR 78.900 Million respectively. Loan of INR 78.900 Million received during the current year and INR 59.000 Million received during the last year (after the date of transition to Ind AS) are recognised at fair value using prevailing market interest rates for an equivalent loan. The fair value of loans received in 2016-17 and 2015-16 is estimated at INR 48.400 Million and INR 36.200 Million, respectively, on initial recognition. The difference between the gross proceeds and fair value of the loan is the benefit derived from the interest free loan and is recognised as deferred income (Refer Note 19(b)). Loan as at 1st April, 2015 (date of transition to Ind As) is carried at historical cost (Refer point 5 under Exemptions availed under Note 31). This loan is secured by way of a bank guarantee issued by the Company and is repayable after a period of 5 years from the date of receipt of interest free loan. For the year ended 31st March, 2014, 31st March, 2015 and 31st March, 2016, the Company had made the necessary application to the Haryana Government for the issue of eligibility certificate and for the year ended 31st March, 2017, the Company is in the process of making the necessary application. |
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Auditor 1: |
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Name : |
BSR and Company LLP Chartered Accountants |
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Auditor 2 : |
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Name : |
Deloitte Haskins and Sells LLP Chartered
Accountants |
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Address: |
Indiabulls Finance Centre, Tower 3, 27th – 32nd Floor, Senapati Bapat Marg, Elphinstone Road (West), Mumbai – 400013, Maharashtra, India |
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Tel. No.: |
91-22-61854000 |
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Fax No.: |
91-22-61854101 |
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Memberships : |
Not Available |
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Collaborators : |
Not Available |
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Associates: |
PPG Asian Paints Private Limited |
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Wholly owned
subsidiaries of PPG Asian Paints Private Limited: |
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Direct
Subsidiaries: |
Note: # The Board of Directors of the Company, at its meeting held on 25th October, 2016, had approved the scheme of amalgamation of Asian Paints (International) Limited with the Company. The scheme will come into effect upon receipt of approval of statutory authorities as may be required in India and Mauritius. * The Company’s name has been struck off from Register of Companies w.e.f. 24th August, 2016. This is pursuant to an application filed by the Company for striking off its name under the “Fast Track Exit Mode” under Section 560 of Companies Act, 1956 on 21st March, 2016. (Refer Note 45B) |
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Indirect
Subsidiaries: |
I. Subsidiaries wholly owned exists Subsidiary, Asian Painst (International) Limited, Mauritius (Where Control Exist):
ii) Subsidiaries of
Berger International Private Limited
Note: # During the year, as part of consolidation of investments in overseas subsidiaries, Asian Paints (International) Limited, Mauritius, a wholly owned subsidiary of the Company, has transferred its entire holding in its subsidiary to its wholly owned subsidiary, Berger International Private Limited, Singapore. This does not have any impact on the financial results. ## During the previous year, as part of consolidation of investments in overseas subsidiaries, Asian Paints (International) Limited, Mauritius, a wholly owned subsidiary of the Company, has transferred its entire holding in its subsidiaries to its wholly owned subsidiary, Berger International Private Limited, Singapore. This does not have any impact on the financial results. @ Berger International Private Limited, Singapore (“BIPL”), a wholly owned indirect subsidiary of the Company, acquired 51% stake in Kadisco Paint and Adhesive Industry Share company for a consideration of US$ 18.95 million (` 117 crores) in cash, on 9th February, 2015. * PT Asian Paints Colour Indonesia was incorporated in Indonesia as a wholly owned subsidiary of Berger International Private Limited during the previous year. iii) Subsidiary of
Enterprise Paints Limited Nirvana Investments Limited, Isle of Man, U.K. iv) Subsidiary of Nirvana
Investments Limited Berger Paints Emirates Limited, U.A.E. v) Subsidiary of
Universal Paints Limited Berger Paints Bahrain W.L.L., Bahrain vi) Subsidiaries of
Lewis Berger (Overseas Holdings) Limited
vi) Subsidiaries of
Sleek International Private Limited Kitchen Grace (India) Private Limited**, India Note: ** During the previous year, Kitchen Grace India Private Limited has been merged with Sleek International Private Limited pursuant to a scheme of amalgamation approved by Honourable High Court of Bombay, effective 1st April, 2015. |
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Entities controlled
by Directors / Relatives of Directors : |
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Post-employment-benefit plant entity : |
Asian Paints (India) Limited Employees’ Gratuity Fund |
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Other entity over which there is a significant influence : |
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CAPITAL STRUCTURE
As on 31.03.2017
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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995000000 |
Equity Shares |
INR 1/- each |
INR 995.000 Million |
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50000 |
Preference shares |
INR 100/- each |
INR 5.000 Million |
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Total |
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INR 1000.000 Million |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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959197790 |
Equity Shares |
INR 1/- each |
INR 959.198
Million |
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- Reconciliation of the number of shares outstanding at the beginning
and at the end of the year :
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Equity Shares |
No.
of Shares |
INR
in Million |
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At the beginning of the period |
959197790 |
959.200 |
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Add: Allotted during the period pursuant
to section 81(1A) of the Companies Act, 1956. |
-- |
-- |
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Outstanding
at the end of the period |
959197790 |
959.200 |
b) Terms/rights
attached to equity shares
The Company has only one class of shares referred to as equity shares having a par value of INR 1 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. Payment of dividend is also made in foreign currency to shareholders outside India. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
c) Details of
Shareholders holding more than 5% equity shares in the Company@
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Name of Shareholder |
No. of Shares held |
% of Holding |
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Fully paid Equity
Shares of INR 1 each held by: |
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Smiti Holding and Trading Company Private Limited, |
54084120 |
5.64 |
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ISISHolding and Trading Company Private Limited, |
52884120 |
5.51 |
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Geetanjali Trading and Investments Private Limited, |
49267440 |
5.14 |
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Life Insurance Corporation of |
45004429 |
4.69 |
@ As per the of the Company, including its register of members
As per the Companies Act, 2013, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts in the event of liquidation of the Company. However no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.
The Board of Directors at its meeting held on 25th October,
2016 declared an interim dividend of INR 2.65 (Rupees two and paise sixty five
only) per equity share of the face value of INR 1 each. The Board of Directors
at its meeting held on 11th May, 2017 have recommended a payment of final
dividend of INR 5.65 (Rupees five and paise sixty five only) per equity share
of the face value of INR 1 each for the financial year ended 31st March, 2017.
In addition, the Board of Directors have recommended a one-time special
dividend of INR 2 (Rupees two only) per equity share of the face value of INR 1
each for celebrating 75 years of Excellence at Asian Paints. If approved, the
total dividend (interim and final dividend) for the financial year 2016-17 will
be INR 8.3 per equity share of the face value of INR 1 each (INR 7.50 per
equity share of the face value of INR 1 each was paid as total dividend for the
previous year), while the total dividend along with special dividend amounts to
INR 10.30 (Rupees ten and paise thirty only) per equity share of the face value
of INR 1 each.
FINANCIAL DATA
[all figures are
in INR Million]
ABRIDGED
BALANCE SHEET
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SOURCES
OF FUNDS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
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I.
EQUITY AND LIABILITIES |
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(1)Shareholders' Funds |
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(a) Share Capital |
959.200 |
959.200 |
959.200 |
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(b) Reserves & Surplus |
68550.600 |
58298.100 |
41343.400 |
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(c) Money received against share
warrants |
0.000 |
0.000 |
0.000 |
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(2) Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
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Total
Shareholders’ Funds (1) + (2) |
69509.800 |
59257.300 |
42302.600 |
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(3) Non-Current Liabilities |
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(a) long-term borrowings |
103.800 |
292.700 |
320.900 |
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(b) Deferred tax liabilities
(Net) |
2611.700 |
2171.700 |
1677.800 |
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(c) Other long term
liabilities |
59.600 |
35.000 |
0.000 |
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(d) long-term provisions |
1098.400 |
942.300 |
852.500 |
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Total
Non-current Liabilities (3) |
3873.500 |
3441.700 |
2851.200 |
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(4) Current Liabilities |
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(a) Short term borrowings |
268.300 |
0.000 |
0.000 |
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(b) Trade payables |
16712.600 |
13332.000 |
13130.800 |
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(c) Other current liabilities |
11414.400 |
10855.000 |
8327.100 |
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(d) Short-term provisions |
362.000 |
363.500 |
6120.300 |
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Total
Current Liabilities (4) |
28757.300 |
24550.500 |
27578.200 |
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TOTAL |
102140.600 |
87249.500 |
72732.000 |
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II.
ASSETS |
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(1) Non-current assets |
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(a) Fixed Assets |
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(i) Tangible assets |
25120.100 |
25329.700 |
18864.200 |
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(ii) Intangible Assets |
926.700 |
960.200 |
790.700 |
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(iii) Capital work-in-progress |
2197.600 |
927.900 |
1395.400 |
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(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
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(b) Non-current Investments |
14545.500 |
13196.400 |
7757.200 |
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(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
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(d) Long-term Loan and Advances |
702.700 |
610.700 |
2095.400 |
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(e) Other Non-current assets |
4349.200 |
807.000 |
136.400 |
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Total
Non-Current Assets |
47841.800 |
41831.900 |
31039.300 |
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(2) Current assets |
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(a) Current investments |
13154.000 |
14770.000 |
11180.600 |
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(b) Inventories |
21940.900 |
16101.200 |
18021.800 |
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(c) Trade receivables |
9946.300 |
7590.600 |
7288.700 |
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(d) Cash and cash equivalents |
2052.700 |
1607.800 |
618.100 |
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(e) Short-term loans and
advances |
135.500 |
96.500 |
2054.300 |
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(f) Other current assets |
7069.400 |
5251.500 |
2529.200 |
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Total
Current Assets |
54298.800 |
45417.600 |
41692.700 |
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TOTAL |
102140.600 |
87249.500 |
72732.000 |
PROFIT
& LOSS ACCOUNT
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|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
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SALES |
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Revenue from sale of goods and services |
141545.400 |
131323.200 |
114856.700 |
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Revenue from sale of services |
75.900 |
126.300 |
0.000 |
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Other Operating Revenue |
1983.000 |
1872.300 |
1631.600 |
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Other Income |
3009.000 |
2494.300 |
1868.200 |
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TOTAL
|
146613.300 |
135816.100 |
118356.500 |
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Less |
EXPENSES |
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Cost of Materials Consumed |
67374.500 |
58659.400 |
61917.200 |
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Purchases of Stock-in-Trade |
6465.300 |
5244.200 |
3805.600 |
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Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(5155.800) |
1945.100 |
(1324.300) |
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Excise duty |
17133.200 |
15018.500 |
0.000 |
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Exceptional Items |
0.000 |
653.500 |
135.300 |
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Employees benefits expense |
7428.300 |
6668.300 |
6069.400 |
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Other expenses |
23644.400 |
21017.000 |
25915.200 |
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TOTAL |
116889.900 |
109206.000 |
96518.400 |
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PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
29723.400 |
26610.100 |
21838.100 |
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Less |
FINANCIAL
EXPENSES |
188.600 |
234.000 |
271.300 |
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PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
29534.800 |
26376.100 |
21566.800 |
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Less/
Add |
DEPRECIATION/
AMORTISATION |
2954.300 |
2345.100 |
2231.100 |
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PROFIT/
(LOSS) BEFORE TAX |
26580.500 |
24031.000 |
19335.700 |
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Less |
TAX |
8549.500 |
7802.900 |
6061.700 |
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PROFIT/
(LOSS) AFTER TAX |
18031.000 |
16228.100 |
13274.000 |
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|
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PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
21815.500 |
18396.400 |
10000.000 |
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Remeasurement
benefit of defined benefit |
53.800 |
17.200 |
0.000 |
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APPROPRIATIONS |
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|
|
|
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Transfer to General Reserve |
5000.000 |
5329.000 |
6293.300 |
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Dividend |
7625.600 |
6234.800 |
5851.200 |
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Tax on Dividend |
1543.300 |
1262.400 |
1129.500 |
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Total
|
14168.900 |
12826.200 |
13274.000 |
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|
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Balance
Carried to the B/S |
25731.400 |
21815.500 |
10000.000 |
|
|
|
|
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|
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EARNINGS
IN FOREIGN CURRENCY |
|
|
|
|
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Export Earnings of Own Product at FOB Value |
|
343.800 |
360.200 |
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Export of Traded Goods at FOB Value |
|
13.200 |
11.400 |
|
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Royalty |
|
328.900 |
240.100 |
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Others Receipt Including Recoveries from Subsidiaries |
|
116.100 |
105.900 |
|
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TOTAL
EARNINGS |
1336.200 |
802.000 |
717.600 |
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IMPORTS |
|
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|
|
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Raw Materials |
|
16623.400 |
16607.400 |
|
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Components and Stores parts |
|
36.000 |
36.800 |
|
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Capital Goods |
|
1840.400 |
188.600 |
|
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TOTAL
IMPORTS |
NA |
18499.800 |
16832.800 |
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Earnings
/ (Loss) Per Share (INR) |
18.8 |
16.92 |
13.84 |
CURRENT MATURITIES OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Maturities of Long term debt |
19.800 |
64.400 |
74.800 |
|
Cash generated from operating activity |
22550.300 |
27406.300 |
NA |
|
Net Cash generated from operating activity |
14116.000 |
19796.700 |
18206.300 |
QUARTERLY RESULTS
|
Particulars |
30.06.2017 |
30.09.2017 |
31.12.2017 |
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Audited / Unaudited |
Unaudited |
Unaudited |
Unaudited |
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|
1ST Quarter |
2nd Quarter |
3rd Quarter |
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Net Sales |
35945.700 |
36022.000 |
35874.300 |
|
Total Expenditure |
29974.900 |
28821.100 |
27693.300 |
|
PBIDT (Excl OI) |
5970.800 |
7200.900 |
8181.000 |
|
Other Income |
861.400 |
638.400 |
683.600 |
|
Operating Profit |
6832.200 |
7839.300 |
8864.600 |
|
Interest |
42.900 |
49.700 |
52.000 |
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Exceptional Items |
NA |
NA |
NA |
|
PBDT |
6789.300 |
7789.600 |
8812.600 |
|
Depreciation |
757.500 |
771.500 |
781.400 |
|
Profit Before Tax |
6031.800 |
7018.100 |
8031.200 |
|
Tax |
2022.300 |
2283.600 |
2741.500 |
|
Provisions and contingencies |
NA |
NA |
NA |
|
Profit After Tax |
4009.500 |
4734.500 |
5289.700 |
|
Extraordinary Items |
NA |
NA |
NA |
|
Prior Period Expenses |
NA |
NA |
NA |
|
Other Adjustments |
NA |
NA |
NA |
|
Net Profit |
4009.500 |
4734.500 |
5289.700 |
KEY
RATIOS
EFFICIENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Average Collection Days (Sundry Debtors / Total Income * 365 Days) |
24.76 |
20.40 |
22.48 |
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Account Receivables Turnover (Total Income /
Sundry Debtors) |
14.74 |
17.89 |
16.24 |
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Average Payment Days (Sundry Creditors
/ Purchases * 365 Days) |
82.61 |
76.15 |
72.92 |
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Inventory Turnover (Operating Income
/ Inventories) |
1.35 |
1.65 |
1.21 |
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Asset Turnover (Operating Income
/ Net Fixed Assets) |
1.05 |
0.98 |
1.04 |
LEVERAGE RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Debt Ratio ((Borrowing + Current Liabilities) / Total
Assets) |
0.28 |
0.29 |
0.38 |
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Debt Equity Ratio (Total Liability
/ Networth) |
0.01 |
0.01 |
0.01 |
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Current Liabilities to Networth (Current
Liabilities / Net Worth) |
0.41 |
0.41 |
0.65 |
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Fixed Assets to Networth (Net Fixed Assets
/ Networth) |
0.41 |
0.46 |
0.50 |
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|
Interest Coverage Ratio (PBIT / Financial
Charges) |
157.60 |
113.72 |
80.49 |
PROFITABILITY RATIOS
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Net Profit Margin ((PAT / Total Income)
* 100) |
% |
12.30 |
11.95 |
11.22 |
|
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|
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Return on Total Assets ((PAT / Total
Assets) * 100) |
% |
17.65 |
18.60 |
18.25 |
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Return on Investment (ROI) ((PAT / Networth)
* 100) |
% |
25.94 |
27.39 |
31.38 |
SOLVENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Ratio (Current Assets / Current Liabilities) |
1.89 |
1.85 |
1.51 |
|
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Quick Ratio ((Current Assets
– Inventories) / Current Liabilities) |
1.13 |
1.19 |
0.86 |
|
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|
G-Score Ratio Financial (Networth / Total
Assets) |
0.68 |
0.68 |
0.58 |
|
|
|
|
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|
G-Score Ratio Debt (Debts / Equity
Capital) |
0.41 |
0.37 |
0.41 |
|
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|
|
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|
G-Score Ratio Liquidity (Total Current Assets
/ Total Current Liabilities) |
1.89 |
1.85 |
1.51 |
Total Liability = Short-term Debt + Long-term
Debt + Current Maturities of Long-term debts
STOCK PRICES
|
Face Value |
INR 1.00/- |
|
Market Value |
INR 1101.25/- |
FINANCIAL ANALYSIS
[all figures are
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 |
959.200 |
959.200 |
959.200 |
|
Reserves & Surplus |
41343.400 |
58298.100 |
68550.600 |
|
Net
worth |
42302.600 |
59257.300 |
69509.800 |
|
|
|
|
|
|
Long Term borrowings |
320.900 |
292.700 |
103.800 |
|
Short Term borrowings |
0.000 |
0.000 |
268.300 |
|
Current Maturities of Long term debt |
74.800 |
64.400 |
19.800 |
|
Total
borrowings |
395.700 |
357.100 |
391.900 |
|
Debt/Equity
ratio |
0.009 |
0.006 |
0.006 |
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 |
|
Total
Income |
118356.500 |
135816.100 |
146613.300 |
|
|
|
14.752 |
7.950 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Total
Income |
118356.500 |
135816.100 |
146613.300 |
|
Profit |
13274.000 |
16228.100 |
18031.000 |
|
|
11.22% |
11.95% |
12.30% |
ABRIDGED
BALANCE SHEET – (CONSOLIDATED)
|
SOURCES
OF FUNDS |
|
31.03.2017 |
31.03.2016 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
959.200 |
959.200 |
|
(b) Reserves & Surplus |
|
68550.600 |
58298.100 |
|
(c) Money received against
share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
|
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
|
69509.800 |
59257.300 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
103.800 |
292.700 |
|
(b) Deferred tax liabilities
(Net) |
|
2611.700 |
2171.700 |
|
(c) Other long term
liabilities |
|
59.600 |
35.000 |
|
(d) long-term provisions |
|
1098.400 |
942.300 |
|
Total
Non-current Liabilities (3) |
|
3873.500 |
3441.700 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
268.300 |
0.000 |
|
(b) Trade payables |
|
16712.600 |
13332.000 |
|
(c) Other current liabilities |
|
11414.400 |
10855.000 |
|
(d) Short-term provisions |
|
362.000 |
363.500 |
|
Total
Current Liabilities (4) |
|
28757.300 |
24550.500 |
|
|
|
|
|
|
TOTAL |
|
102140.600 |
87249.500 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
25120.100 |
25329.700 |
|
(ii) Intangible Assets |
|
926.700 |
960.200 |
|
(iii) Capital work-in-progress |
|
2197.600 |
927.900 |
|
(iv) Intangible assets under
development |
|
0.000 |
0.000 |
|
(b) Non-current Investments |
|
14545.500 |
13196.400 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
702.700 |
610.700 |
|
(e) Other Non-current assets |
|
4349.200 |
807.000 |
|
Total
Non-Current Assets |
|
47841.800 |
41831.900 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
13154.000 |
14770.000 |
|
(b) Inventories |
|
21940.900 |
16101.200 |
|
(c) Trade receivables |
|
9946.300 |
7590.600 |
|
(d) Cash and cash equivalents |
|
2052.700 |
1607.800 |
|
(e) Short-term loans and
advances |
|
135.500 |
96.500 |
|
(f) Other current assets |
|
7069.400 |
5251.500 |
|
Total
Current Assets |
|
54298.800 |
45417.600 |
|
|
|
|
|
|
TOTAL |
|
102140.600 |
87249.500 |
PROFIT
& LOSS ACCOUNT– (CONSOLIDATED)
|
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
|
|
SALES |
|
|
|
|
|
Income |
|
170847.600 |
158416.900 |
|
|
Other Income |
|
2626.000 |
2133.900 |
|
|
TOTAL
|
|
173473.600 |
160550.800 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
|
81099.600 |
71948.000 |
|
|
Purchases of Stock-in-Trade |
|
8517.500 |
6555.200 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
|
(5310.700) |
1993.300 |
|
|
Excise duty |
|
17945.600 |
15702.000 |
|
|
Exceptional Items |
|
0.000 |
524.500 |
|
|
Employees benefits expense |
|
10862.900 |
9895.100 |
|
|
Other expenses |
|
27518.400 |
24631.800 |
|
|
TOTAL |
|
140633.300 |
131249.900 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION
AND AMORTISATION |
|
32840.300 |
29300.900 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
|
305.800 |
406.600 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
|
32534.500 |
28894.300 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION |
|
3388.400 |
2755.800 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
|
29146.100 |
26138.500 |
|
|
|
|
|
|
|
Less |
TAX |
|
9479.800 |
8444.900 |
|
|
|
|
|
|
|
|
PROFIT AFTER TAX BEFORE SHARE OF PROFIT OF ASSOCIATE |
|
19666.300 |
17693.600 |
|
|
|
|
|
|
|
SHARE
OF PROFIT OF ASSOCIATE |
|
496.100 |
334.200 |
|
|
|
|
|
|
|
|
|
PROFIT
FOR THE YEAR |
|
20162.400 |
18027.800 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (INR) |
|
20.22 |
18.19 |
LEGAL
CASES
|
LITIGATION DETAILS |
||||
|
Bench:- Bombay |
||||
|
Presentation Date: 27.06.2017 |
||||
|
Lodging No:- |
ITZAL/1544/2017 |
Failing Date:- |
27.06.2017 |
|
|
|
||||
|
Petitioner:- |
THE COMMISSIONER OF INCOME TAX |
Respondent:- |
ASIAN PAINTS LIMITED |
|
|
Petn.Adv:- |
TEJVEER SINGH MASTAN SINGH (I3678) |
Res. Adv. : |
RAHUL K. HAKANI AND NEELAM C. JADHAV |
|
|
District:- |
MUMBAI |
|||
|
Bench:- |
SINGLE |
Category: |
TAX APPEALS |
|
|
Status:- |
Pre-Admission |
Stage:- |
FOR REJECTION
[ORIGINAL SIDE MATTERS] |
|
|
Last Date:- |
21.09.2017 |
|||
|
Last Coram:- |
REGISTRAR (OS)PROTHONOTARY AND SR. MASTER |
|||
|
Act:- |
Income Tax Act, 1961 |
Under section:- 260A |
||
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 |
Yes |
|
8 |
Designation of contact person |
Yes |
|
9 |
Promoter’s background |
Yes |
|
10 |
Date of Birth of Proprietor / Partners / Directors |
Yes |
|
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 |
COMPANY BACKGROUND
Subject (the ‘Company’) is a public limited Company domiciled and incorporated in India under the Indian Companies Act, 1913. The registered office of the Company is located at 6A, Shantinagar, Santacruz East, Mumbai, India.
The Company is engaged in the business of manufacturing, selling and distribution of paints, coatings, products related to home décor, bath fittings and providing related services.
MANAGEMENT DISCUSSION AND ANALYSIS
ECONOMIC ENVIRONMENT
The financial year 2016-17 has been a year marked with both excitement and challenges for the global as well as the Indian economy. Some of the events that took place during the course of this year could very well turn out to be the defining moments for the world economy at large. The sheer scale and swiftness with which the Indian Government demonetised almost 86% of the currency notes in circulation in November 2016 is one such event. Coming at a time when the Indian economy was just beginning to look up on the back of positive sentiments from private consumption and normal monsoon, the cash shortage and payment disruptions caused by demonetisation, strained the consumption and business activity for a major part of the second half of the year. Consequently, GDP growth for the year is expected to be almost 1% lower at 6.7% than that in the previous year. Capital investments still remain stagnant with an overhang of spare capacity in many industries and corporate balance sheets still remain stretched hindering their ability to invest on any future uptick in demand. Merchandise exports continued to contract, partly as a result of the lower commodity prices as well as due to the weak global demand.
On the fiscal front, the position is expected to be much better with the Government expected to meet its fiscal deficit target at 3.5% of GDP and the current account deficit narrowing down further to about 1.1% of GDP. Inflation, though inching up in the last few months, also stayed below the RBI’s target of 5%, leading to an accommodative monetary policy for most part of the year. The Indian rupee stayed relatively stable this year, trading in a range of 66-67 to USD for most part of the year before seeing a sharp appreciation during the close of the financial year.
It was also encouraging to see the Government move ahead on clearing the legislative hurdles for the implementation of the Goods and Services Tax (GST), touted as the biggest tax reform for the country. All indications now suggest that GST should get implemented in the second quarter of the financial year and although uncertainties remain around the design as well as readiness of the entire economy to implement this structural change, is poised to provide a fillip to India’s economic growth as it will create a single national market and enhance the efficiency of inter-state movement of goods and services apart from moving a large part of the informal sector within the formal set-up of the economy.
On the global front, two key events have led to a lot of uncertainty and spurt in volatility across markets. In June 2016, UK voted to leave the European Union leading to an immediate ratings downgrade and financial market volatility. The financial markets have seemingly factored in this event but the impending round of trade negotiations between UK and the European Union, point to a tough road ahead. The November 2016 US election outcome was also a major surprise and led to a lot of capital flight away from the emerging markets, including India, on the hopes of strong pro-US growth policy rollouts from the new Government. The challenges faced in the initial roll-out of some of this agenda by the new administration, point to a difficult and tumultuous road ahead which will have implications not just for the US economy but the entire global set-up.
DECORATIVE INDIA
BUSINESS
Sales and Marketing
The year witnessed an unprecedented move of demonetization by the government, right after the festive season got over. The Company managed to register good growth during the year despite this unexpected move. There was a strong focus during the year on the product mix and a lot of new products across categories were launched. All the new categories and new products launched during the last couple of years have done extremely well during financial year 2016-17.
Key categories of luxury and premium emulsions have done well during the year. The Company carried out systematic breakthrough programmes to introduce innovation and as a result, launched 3 new revolutionary products - ‘Tractor Aqualock’, ‘Truegrip Ultra Adhesive’ and ‘Dampsheath Exterior’. In the interiors category, national launch of ‘Royale Atmos’ created an opportunity for the Company to be the first mover in this segment and build differentiation and innovation for ‘Royale’. The Sheen variant of ‘Tractor Emulsion’ was launched in September and was well received in the market.
The Company’s focus on performance has led the growth in the exteriors segment over the last couple of years. The focus on décor has added a new dimension to the overall offering, making the Company’s products in the exterior segment much more aspirational. The ‘Earth series’ inspired by nature and the ‘Geometrix’ collection with geometricshaped designs were launched during the year. On the back of comprehensive brand building marketing initiatives across regions and new TVC, ‘Ultima Protek’ is now clearly seen as the best waterproofing exterior product and continues to grow and increase market share. The ‘Baarish Ko Aane Do’ campaign featuring actor Ranbir Kapoor strengthened the positioning further. Strengthening the ‘Ultima’ brand further, the Company launched ‘Ultima Protek Duralife’. It is the only painting system in the world to offer fifteen and ten years’ warranty on performance and waterproofing, respectively.
The Company made a foray into waterproofing a couple of years back. Taking the category forward, this year, the Company introduced warranty on key waterproofing products, which is a key differentiator in the waterproofing market. ‘Damp Block 2K’ and ‘Damp Sheath’ range was launched during the year and both can be key game changers in the coming years. For Projects, specialised products including a full range of repair products were launched, which has opened a significant market for the Company to address.
Amongst the new categories launched recently, the Company made decent inroads in the rollers segment of the tools business. Mechanised range of tools were launched across markets.
The Company is focussed towards driving growth in the luxury wood finishes space. All products in this segment have done well with ‘Emporio’, ‘PU-Palette’ and ‘APPU’ driving the growth story.
The Company’s dedicated Projects vertical, Asian Paints Project Sales registered a very good performance during the year with all regions of the country doing equally well. All major sub-segments within projects did well, led by Government and Housing Societies. The largest within projects, builders also did well despite the sluggish demand conditions.
Asian Paints Ezycolour Home Solutions (APEHS) is the painting arm of the Company. While large units of APEHS located in major cities did well, growth was lower in some of the smaller units. Launch of variants like waterproofing solutions, wood solutions and Ezycolour Pro solutions for architects and interior designers helped in strengthening the positioning of APEHS.
During the year, the Company has added a large number of Colour Worlds, extending the coverage further to smaller towns across the country. The new high-end ‘Colour Ideas store’ have been extended across more than 150 cities offering consumer a number of décor choices for their homes. The Company launched a flagship ‘AP Homes’ stores at Coimbatore last year. The concept is being scaled up with more stores coming in North and South India in the next year.
‘Colour Next’ is the Company’s proprietory colour research initiative that helps to establish the Company as a colour leader. Colour Next 2017 and Colour of the year – Intense Ocean were launched at the India Design Week in Delhi. The Company leads with the vision of being the forerunner of inspiring décor and partnering with consumers in transforming their living spaces. A new TVC Campaign ‘Colour Expert’ was launched in August 2016 to this effect to drive awareness around this vision as well as promote the Colour Consulting Service offered by the Company. We have crossed more than 2.5 lakh consultancies during the year through this channel.
The Company is focussed around the usage of the digital medium of marketing. The new website was launched in April 2016. It was followed by a Hindi website in the month of October 2016. ‘Colour Visualiser’ too was launched in September 2016 and has met with a very positive response. The Company ran a dedicated digital calendar this year with more than 40 digital campaigns during the year. The Company understands that décor enthusiasts across our key consumer segments are looking for inspiration and hence www.beautifulhomes.com was launched in October 2016 as an online décor magazine. The website will feature inspirational Indian homes and workspaces, practical décor tips, accessible design ideas and DIY guides.
Supply Chain
The Company completed the expansion project at its Rohtak plant during the last year. Post the expansion, the capacity at Rohtak has been taken to 4,00,000 KL per annum now. Operations at the plant were stabilised quickly during the year and the plant capacity is being ramped up now.
The Company is also working on two greenfield paint manufacturing facilities at Mysuru and Vishakhapatnam (Vizag). The maximum capacity at Mysuru will be 6,00,000 KL per annum installed in phases. The maximum capacity at Vizag will reach 5,00,000 KL per annum installed in phases. The Company would be investing approximately INR 23000.000 Million at Mysuru and INR 17850.000 Million at Vizag to reach these capacities. Both the projects are on track to achieve the capacity of 3,00,000 KL per annum each in the first phase.
The Company is also in the process of seeking statutory approvals for expanding the paint production capacity at Ankleshwar from 1,30,000 KL per annum to 3,00,000 KL per annum and augment the resin and emulsion capacity from 32,000 MT per annum to 85,000 MT per annum. The aforesaid expansion and augmentation would involve phasing out the current Phthalic Anhydride and its allied products manufactured at this facility.
During the year investments were made in plants to expand infrastructure for receiving powder raw materials in bulk form.
It would reduce usage of packaging material and lead to better hygiene due to reduced dust generation during handling. Anticipating customer demand and ensuring timely servicing is one of the key strengths of the Company. During the last year, projects were undertaken to implement advanced IT tools to further improve on statistical forecasting and drive high forecast accuracy to ensure better planning around demand and supply to improve servicing in the eastern parts of the country, a new distribution centre was modelled and implemented in the region.
INTERNATIONAL
OPERATIONS
The international operations of the Company are spread across geographies. Some of the key markets faced challenging business conditions due to the subdued economic environment in those countries. However, most of the International units managed to tide over the challenges and delivered strong performance. Egypt, which is the largest International unit of the Company, faced a volatile year due to a severe foreign exchange shortage in the country. To tide over this crisis, the Egyptian government embarked upon several fiscal reforms during the year, one of them being the sharp devaluation of its currency. This had significant impact on the economy as raw material prices and inflation soared. Despite all these challenges, Egypt posted robust performance by taking required measures. Post devaluation, Egyptian dollar is now a free floating currency and after an initial period of instability, investor confidence has improved, reflected by the improvement in forex reserves, which have gone up from a low of USD 16 Billion to around USD 28 Billion.
Ethiopia faced a challenging start due to drought and political tensions in the country. State of emergency was declared in the country in October 2016 after anti-government protests. This impacted forex availability and led to decrease in foreign investments. Despite the uncertainty from the political fallout, the International Monetary Fund is upbeat about the future prospects of the economy.
The Company’s operations in South Asia registered strong growth led by the performance in Nepal. Post-earthquake, reconstruction and favourable monsoon has aided growth in the country. Bangladesh faced adverse conditions in the first half of the year but bounced back on the back of good growth in agriculture sector and robustness in the all-important garment sector.
Middle East is going through a slowdown as oil prices remain low. Oman witnessed a downturn in the economy, with the GDP declining for the second year in succession. The government was under pressure to maximise revenues and curb expenditure to prevent fiscal deficit from getting out of control. Inflation peaked in Bahrain in 2016 as the Government took some aggressive measures such as increasing prices of petrol, water, electricity and reducing subsidies. This along with the reduction in oil prices dampened market sentiments. Despite the slowdown, both the units of Oman and Bahrain did well in a subdued market on the back of improved servicing and right product mix. United Arab Emirates (UAE) witnessed a slowdown in economic growth. GDP growth in UAE was subdued down on the back of slowdown in the oil economy. Even the non-oil sector was subdued, as the strength of the currency affected corporate competitiveness as well as the tourism sector.
Macro environment in Caribbean countries were mixed. Domestic demand in Jamaica was better during the year due to a more stable and business-friendly macro-economic environment, falling unemployment and stronger investment growth. Trinidad and Tobago’s economy was caught up in a recession spiral with GDP most likely contracting for the third consecutive year.
Fiji was hit by cyclone Winston in the month of February 2016. The government was quick in the reconstruction efforts and the economy witnessed strong reconstruction demand. Paint market did well on the back of subsidy given by the government.
Berger International Private Limited, Singapore (BIPL), through its subsidiary company acquired land for setting up a manufacturing facility in Indonesia during the last year. Construction for an interim facility of 5,000 KL per annum started in August, 2016 and is nearing completion. Meanwhile, commercial operations were started through tie-ups with business partners.
The work on consolidating all the operating subsidiaries under a single overseas holding company was initiated last year. Phase I of this exercise got completed this year with the transfer of Asian Paints (Lanka) Limited to BIPL. Consequently, Phase II of the exercise of merging Asian Paints International Limited, Mauritius, with the parent company, Asian Paints Limited, was initiated. The Company is in the process of completing all formalities and obtaining all clearances in respect of the same.
The Company strengthened its international footprint by acquiring 100% stake in Causeway Paints Lanka (Private) Limited (Causeway), Sri Lanka through its wholly-owned subsidiary Berger International Private Limited, Singapore. Causeway is a key player in the Sri Lankan coatings market and has been operating for more than two decades in the country.
Against the backdrop of an overall difficult market condition, the international operations have delivered a good performance driven by strong volume growth and operational efficiencies.
HOME IMPROVEMENT
BUSINESS
With the vision of being a complete décor solutions provider to help customers create their dream homes, the Company forayed in the Home Improvement business 3 (three) years back. The Company is present in the Kitchen and the Bath business under the Home Improvement segment.
Kitchen Business
Sleek today enjoys the exclusivity of being the only player in the Kitchen space that is into both ‘Kitchen Components’ and ‘Full Kitchen Solutions’. It operates the same through a network of distributors, dealers and retail stores.
During the year, the component segment grew well. Growth was impacted in the November to January period due to demonetisation. New products such as “Tuff Advance” soft close drawer systems, appliances, and hardware such as hinges & channels have driven growth in the segment. More than 1,000 sub-dealers were added to the network. The network today stands at around 3,200 sub-dealers.
For the Full Kitchen solutions, priority was placed on addition of Full Support Dealers. 40 Full Support Dealers were added this year taking the total network to 117 now. The support of well-trained at store Sleek designers, supervisors and Design and Operations Managers has helped in increasing kitchen bookings from these dealers. During the year, focus was on improving efficiency, reducing errors, reducing closure timelines and implementing ‘Design to Manufacture’ (D2M) software. Sleek also forayed into wardrobes on a pilot basis during the year. The response on this range has been encouraging.
Conversion of Project orders was slower than expected due to a weak real estate market in the second half of the financial year. However, the Projects and AID (Architects and Interior Designers) division was able to shore up the order book quite well, which has created the foundation for better sales in this segment in 2018.
While, many initiatives were driven throughout the year to improve the position and performance of the business, the pace of growth has been slower as compared to the expectation, partially dented due to demonetisation and slowdown in real estate and construction arena
Bath Business
During the year, there was a strong focus on driving improvements in manufacturing, logistics and service and sales and marketing in the bath fittings business. The Company has worked on improving material service to the network. Additionally, there is thrust on adding new network as well as adding more showrooms to the existing areas. The aforesaid enhancement will also aid expansion of the network for the Royale range of bath fittings. The Company has made progress in improving the manufacturing facility throughout in accordance with the LEAN-KAIZEN approach.
During the year, the Company has followed a twin-pronged strategy to promote the premium range. While D-Series, Dune and Tarim ranges of the portfolio were driving the upgradation effort in the larger part of the network, Royale range (launched in January, 2016) created a new product story at the upper end. Both have been successful in creation of effective selling points.
At a country level, growth was led mainly through the new dealers added in the recent years. Inflation in prices of key commodities like zinc and copper affected margins especially towards the end of the year. The Sanitaryware range launched in March, 2016 was further piloted in select counters during the year.
INDUSTRIAL BUSINESS
Automotive Coatings:
PPG Asian Paints Private Limited (PPG-AP)
PPG-AP, the first 50:50 Joint Venture of the Company with PPG Industries Inc., USA for manufacturing Automotive, OEM, Refinish, Marine, Packaging and certain Industrial Coatings, has performed well during the year.
Growth in the business was driven by the passenger vehicle and 2-wheeler build market which grew at 7.9% each accompanied by some contraction in the market of the Japanese suppliers. This along with key wins led the top line growth for Automotive, General Industrial and Refinish segments. Growth in Marine and Packaging segments was subdued.
On the capacity front, the Company is working on setting up a plant in Dahej and the project is under execution currently. Parallely, Packaging cell was commissioned during the year at Sriperumbudur, Tamil Nadu. During the year, margins improved due to favourable material cost helped by better sourcing and localisation strategies.
Non-Auto Industrial
Coatings: Asian Paints PPG Private Limited (AP-PPG)
AP-PPG serves the non-auto industrial coatings market of the country and is the Company’s second 50:50 joint venture withPPG Industries Inc., USA.
Industrial segment growth was driven by continued focus on dealer channel, Maintenance and Repairs (M&R) segment and OEM segment. The Company successfully strengthened the dealer base in North and West markets, establishing gains in key competitive counters, in the Protective Coatings business. The significant increase in customer base in Pre-Engineered Building has helped maintain leadership in metro infrastructure projects. Some segments within OEMs witnessed strong demand due to stricter implementation of safety norms.
While Road markings segment registered decent growth due to several large projects won, the growth of powder business was dampened by slowdown in overall manufacturing industry especially in second half of the year. Demand condition in Furniture, Genset, Architectural segment, Auto and Job coater segment was better during the year.
Overall, AP-PPG registered strong growth both in terms of revenues as well as profitability during the year. Profitability improved mainly due to lower raw material costs.
Phthalic and Penta
The Company’s two chemical businesses, Phthalic Anhydride, manufactured at Ankleshwar, Gujarat and Pentaerythritol, manufactured at Cuddalore, Tamil Nadu, were set up as backward integration initiatives in the eighties, primarily to cater to the inhouse demand for these chemicals.
Phthalic Plant has achieved a new milestone, a world record of 490 days of continuous uninterrupted operations. Phthalic Plant was also awarded a Certificate of Merit for Cleaner Production by Ministry of Environment and Forests, Govt. of Gujarat. Raw material prices remained favourable throughout the year and aided margins in this business.
Prices of Pentaerythritol remained firm throughout the year. Plant continued to export its Di-Penta production and earned valuable foreign exchange. Penta Plant was awarded Certificate of Merit for safety performance by the Tamil Nadu Chapter of Confederation of Indian Industry.
OUTLOOK AND RISKS
On the domestic front, the financial year 2017-18 has started on a positive note with the progress seen on implementation of the GST regime from the second quarter of the year. While over the long-term it is expected to give a strong fillip to the economic activity with rationalisation of the market place and also boost competitiveness of the industry, it is bound to have disruptions in the short term.
The impact of demonetisation felt over the last two quarters of the previous financial year is expected to fade out and the last few quarters and coupled with any adverse demand conditions, this could lead to a squeeze on the margins of the industry.
On the international front, a gradual pick-up in crude prices is expected. Despite the challenge of volatile currency, Egypt is expected to gradually benefit from the improved competitiveness and return of foreign investments to the market. However, the recent imposition of emergency in Egypt along with the continued challenges on foreign exchange availability make the business conditions uncertain. The retail sentiment in Gulf region – Oman, Bahrain and UAE is projected to remain dampened due to the not-so-favourable government reforms on consumption tax. Political stability in the two key markets of Bangladesh and Nepal would be key to sustained performance in these markets.
The home improvement segment has been drawing lessons from its experience in an industry where several domestic and international brands are vying for space. The Company continues to adapt based on its market learnings, enhance its capabilities and reach to strengthen its position in the market. Despite the near-term challenges in this business, the Company remains confident about the growth prospects for this business over the long term.
The India story stands at a very interesting juncture today. There are heightened hopes around the growth prospects of the economy with the Government pushing forward its reform agenda. The Government has placed a clear focus on areas like smart cities, clean India and sanitation, which has a bearing on the products and markets that the Company operates in. The Company has consistently invested in building capabilities to meet the requirements of the consumers and the market. The Company’s enviable strengths and the opportunities that the market can offer, place the Company in a unique position to deliver sustainable long-term performance over the years to come.
COMPANY’S PERFORMANCE
The Company has adopted Indian Accounting Standards (Ind AS) with effect from 1st April, 2016, pursuant to the notification of Companies (Indian Accounting Standard) Rules, 2015 issued by the Ministry of Corporate Affairs. Previous years’ figures have been restated and audited by the Joint Statutory Auditors of the Company, namely, M/s. BSR and Company LLP, Chartered Accountants (Firm Registration No. 101248W/W-100022) and M/s. Deloitte Haskins and Sells LLP, Chartered Accountants (Firm Registration No. 117366W/W-100018).
During the financial year 2016-17, revenue from operations on standalone basis increased to INR 143604.300 Million as against INR 133321.800 Million in the previous year – a growth of 7.7%.
Cost of goods sold as a percentage to revenue from operations decreased to 59.8% as against 60.7% in the previous year. Employee cost as a percentage to revenue from operations increased to 5.2% (INR 7428.300 Million) against 5% (INR 6668.300 Million) in the previous year.
Other expenses as a percentage to revenue from operations increased to 16.5% (INR 23644.400 Million) as against 15.8% (INR 21017.000 Million) in the previous year
The Profit After Tax for the current year is INR 18031.000 Million as against INR 16228.100 Million in the previous year – a growth of INR 11.1%. The growth in profit is mainly driven by increase in revenue from operations and softening of input material prices during the year.
On a consolidated basis, the group achieved revenue of INR 170847.600 Million as against INR 158416.900 Million – a growth of 7.8%. Net profit after non controlling interest for the group for the current year is INR 19394.200 Million as against INR 17451.600 Million in the previous year – a growth of INR 11.1%.
There are no material changes and commitments affecting the financial position of the Company which have occurred between the end of the financial year 2016-17 and the date of this report.
UNSECURED LOAN
|
Unsecured Loan |
31.03.2017 (INR
in Million) |
31.03.2016 (INR
in Million) |
|
Long-term
Borrowings |
|
|
|
Deferred payment
liabilities : |
|
|
|
Sales tax deferment scheme - State of Andhra Pradesh### |
0.000 |
221.800 |
|
|
|
|
|
Short-term
borrowings |
|
|
|
Loans repayable on demand From banks (Bank overdraft)@ |
268.300 |
0.000 |
|
Total
|
268.300 |
221.800 |
|
Note: Long-term
Borrowings: ### Sales tax deferment scheme- State of Andhra Pradesh represents sales tax deferment availed under the Sales tax deferment scheme of the Government of Andhra Pradesh. It had a deferment period of 14 years and was repayable over 9 years. Out of the total loan of INR 407.000 Million, the Company had already repaid INR 120.800 Million till 31st March, 2016. The balance amount was settled during the current year by early repayment of INR 250.800 Million resulting in a gain of INR 35.400 Million accounted as other income. Short-term
borrowings: @ Overdraft in current account carries interest rate @ 8.90% p.a. (as at 31st March, 2016 and 1st April, 2015 it was 12.50% p.a.) * Default in terms of repayment of principal and interest - NIL. |
||
INDEX
OF CHARGES:
|
SNo |
SRN |
Charge Id |
Charge Holder Name |
Date of Creation |
Date of
Modification |
Date of
Satisfaction |
Amount |
Address |
|
1 |
Z01661680 |
80066018 |
STATE BANK OF INDIA |
29/12/1995 |
04/01/2001 |
- |
2100000000.0 |
CORPORATE ACCOUNT GROUP, CENTRAL BRANCH, MUMBAI – 400021, MAHARASHTRA, INDIA |
|
2 |
C77561835 |
80066019 |
PRADESHIYA INDUSTRIAL CORPORATION OF U.P.LTD |
15/03/2002 |
20/03/2003 |
21/01/2016 |
381577364.0 |
PICUP BHAWANGOMTI NAGAR, LUCKNOW – 226006, UTTAR PRADESH, INDIA |
STATEMENT OF STANDALONE
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND SIX MONTHS ENDED 30TH
JUNE 2017
|
|
|
Particulars |
|
|
quarter ended |
|
|
|
|
|
|
30.06.2017 |
|
|
|
Income from
Operations |
|
|
|
|
|
|
Sales/Income from Operations (Gross) |
|
|
35945.700 |
|
|
|
b) Other Operating Income |
|
|
861.400 |
|
|
Total Income from
Operations (Net) |
|
|
36807.100 |
|
|
|
Expenses |
|
|
|
|
|
|
a) |
Cost of Materials consumed |
|
|
17730.000 |
|
|
b) |
Purchase of Stock-in-trade |
|
|
1766.500 |
|
|
c) |
Changes in inventories of finished goods, work-in-progress and
stock-in-trade |
|
|
(1483.300) |
|
|
d) |
Excise Duty |
|
|
3916.900 |
|
|
e) |
Employee benefit expenses |
|
|
2060.100 |
|
|
f) |
Finance Costs |
|
|
42.900 |
|
|
g) |
Depreciation and amortization expense |
|
|
757.500 |
|
|
h) |
Other expenses |
|
|
5984.700 |
|
|
Total Expenses |
|
|
30775.300 |
|
|
|
|
|
|
|
|
|
|
Profit before tax |
|
|
6031.800 |
|
|
|
Tax Expense |
|
|
2022.300 |
|
|
|
Net Profit for the
period |
|
|
4009.400 |
|
|
|
|
|
|
|
|
|
|
Other Comprehensive
Income: |
|
|
|
|
|
|
A. i. Item that
will not be reclassified to profit f loss |
|
|
(124.800) |
|
|
|
ii income tax relating to items that will not be reclassified to profit f loss |
|
|
6.500 |
|
|
|
B. i. Item that
will not be reclassified to profit f loss |
|
|
9.300 |
|
|
|
Ii. Income tax
relating to items that will be reclassified to profit or loss |
|
|
3.900 |
|
|
|
Other Comprehensive Income |
|
|
(105.100) |
|
|
|
Total Other
Comprehensive Income for the period |
|
|
3904.400 |
|
|
|
Paid up equity share capital (Eq. shares of INR 10/- each) |
|
|
959.200 |
|
|
|
Reserve excluding revaluation reserves |
|
|
|
|
|
|
|
Earnings per share (before/after extraordinary items) of INR 10/- each |
|
|
|
|
|
|
Basic & Diluted |
|
|
4.18 |
UNAUDITED FINANCIAL
RESULTS FOR THE QUARTER ENDED AND SIX MONTHS ENDED 30TH JUNE 2017
|
Particulars |
|
|
Quarter Ended |
|
|
|
|
30.06.2017 |
|
Segment Revenue |
|
|
|
|
a) Paints |
|
|
35650.700 |
|
b) Home Improvement |
|
|
295.000 |
|
Net Sales/Income
from Operations |
|
|
35945.700 |
|
|
|
|
|
|
Segment Results |
|
|
|
|
Profit / (Loss) before tax from each segment |
|
|
|
|
a) Paints |
|
|
6367.200 |
|
b) Home Improvement |
|
|
(65.300) |
|
Total |
|
|
6301.900 |
|
|
|
|
|
|
Less: i) Financial Expenses |
|
|
0.300 |
|
II) Other-Un-allocable Expenditure net off |
|
|
843.500 |
|
Add: Un-allocable Income |
|
|
573.700 |
|
|
|
|
|
|
Total Profit /
(Loss) before Tax |
|
|
6031.800 |
|
|
|
|
|
|
Segment assets |
|
|
|
|
a) Paints |
|
|
67034.900 |
|
b) Home Improvement |
|
|
1132.200 |
|
Total Segment assets |
|
|
68167.100 |
|
Un-allocated assets |
|
|
28575.800 |
|
Total |
|
|
96742.900 |
|
|
|
|
|
|
Segment Liabilities |
|
|
|
|
a) Paints |
|
|
25272.500 |
|
b) Home Improvement |
|
|
370.800 |
|
Total Segment Liabilities |
|
|
25643.300 |
|
Un-allocated Liabilities |
|
|
6502.500 |
|
Total |
|
|
32145.800 |
|
Capital Employed |
|
|
|
|
a) Paints |
|
|
41762.400 |
|
b) Home Improvement |
|
|
761.400 |
|
Un-allocable Assets Less Liabilities |
|
|
22073.300 |
|
Total |
|
|
64597.100 |
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.
2. A final dividend of Rs. 5.65 (Rupees Five and Paise Sixty Five Only) and
one-time special dividend of Rs. 2 (Rupees two only) per equity share of the
face value of INR 1 each for the financial year 2016-17 was approved by the
shareholders at the Annual General Meeting held on 27th June, 2017 and the same
was paid on 28th June, 2017.
3. The figures for the quarter ended 31st March, 2017 are the balancing figures
between the audited figures in respect of the full financial year and the
published year to date figures (audited) upto the third quarter of the
financial year.
4. The above results were reviewed and recommended by the Audit Committee on
24th July, 2017 and subsequently approved by the Board of Directors at its
meeting held on 25th July, 2017.
5. The figures of previous periods have been regrouped, wherever required.
CONTINGENT
LIABILITIES:
(INR in million)
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
|
1. Letters of comfort issued to banks on behalf of some of its operating subsidiary companies |
69.000 |
181.600 |
|
2. Claims against
the Company not acknowledged as debts: |
|
|
|
i. Tax matters in dispute under appeal |
2371.500 |
1500.200 |
|
ii. Others |
169.600 |
162.500 |
FIXED ASSETS
Tangible Assets
- Freehold Land
- Leasehold Land
- Buildings
- Plant and Equipment
- Furniture and Fixtures
- Vehicles
- Office Equipment
- Leasehold improvements
- Information Technology Hardware
Intangible Assets
- Goodwill
- Trademark
- Computer Software
- Brand
- Computer Software
PRESS RELEASE
ASIAN PAINTS ACQUIRES
100% STAKE IN RENO CHEMICALS FOR INR 1600.000 MILLION
December 14, 2017
India’s largest paints company, Asian Paints Limited (APNT), announced acquisition of 100% stake in Reno Chemicals Pharmaceuticals And Cosmetics Private Limited (Reno) for a cash consideration of INR 1595.200 Million. This was announced to the stock exchanges on December 12, 2017.
APNT is India’s largest and Asia’s fourth largest paints company with more than
50% market share in India. The company operates in 16 countries and has 25
paint manufacturing facilities in the world.
APNT bought 4,950 equity shares of Reno at INR 3,22,258 per share totalling INR
1595.200 Million. The purchase entailed 100% equity share capital of Reno and
was done in cash. APNT plans to use Reno’s land and buildings to meet its own
infrastructure requirements.
APNT has been on a buying spree in 2017. Its other acquisitions this year
include Sleek International Private Limited (49% stake for INR 500.000 Million
in December 2017) and Sri Lanka’s Causeway Paints Lanks Private Limited (100%
stake for cash consideration of Rs387cr).
To cater to the rising demand, company is planning to set up 5,00,000 KL plant
in AP and 6,00,000 KL plant in Karnataka. The first phase of both the plants
are likely to be completed by FY19E. Post GST implementation, lower tax
advantage for unorganised players will diminish, which is expected to benefit
organised players like Asian Paints. Also, its decorative paints segment (89%
of revenue) is expected to grow at ~14% CAGR till FY20E. Overall, we see
revenue CAGR of ~14% over FY17-19E (vs 4% over FY15-17). Further, the company
expects raw material prices (mainly monomer) to moderate in coming years.
Thereby, we expect EBITDA margin to improve by ~50 bps to 20% over FY17-19E. We
expect company to maintain FY17 D/E of 0.1x in FY19E as well. Overall, we see PAT CAGR of ~14% over
FY17-19E.
Asian Paints Limited is currently trading at INR 1,120.8, up by INR 4.25 or
0.38% from its previous closing of INR 1,116.55 on the BSE.
The scrip opened at INR 1,117.1 and has touched a high and low of INR 1,126 and
INR 1,117.1 respectively. So far 139247(NSE+BSE) shares were traded on the
counter. The current market cap of the company is INR 1070992.300 Million.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No 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 64.85 |
|
UK Pound |
1 |
INR 90.58 |
|
Euro |
1 |
INR 79.96 |
INFORMATION DETAILS
|
Information
Gathered by : |
SLK |
|
|
|
|
Analysis Done by
: |
VRS |
|
|
|
|
Report Prepared
by : |
SUJ |
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)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.