MIRA
INFORM REPORT
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Report Date : |
17.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
TTK HEALTH CARE LIMITED |
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Registered Office : |
No.6, Cathedral Road, Chennai, 600086, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
21.05.1958 |
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Com. Reg. No.: |
003647 |
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CIN No.: [Company
Identification No.] |
L24231TN1958PLC003647 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHET07410E |
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PAN No.: [Permanent
Account No.] |
AABCT3312J |
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Legal Form : |
Public Limited Liability Company. Company’s Shares are listed on the
Stock Exchanges. |
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Line of Business : |
Manufacturer of Consumer Products, Pharmaceutical and Medical Devices. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 1921256 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed Company having fine track. Available
information indicates high financial responsibility of the Company. Trade
relations are fair. Business is active. Payments are reported as usually
correct and as per commitments. The Company can be considered good for normal business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
6, Cathedral Road, Chennai – 600 086, Tamilnadu, India |
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Tel. No.: |
91-44-28116106, 28116110 |
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Fax No.: |
91-44-28114307 |
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E-Mail : |
skr@ttkhealthcare.com
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Website : |
http://www.ttkhealthcare.com |
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Factory : |
5, Old Trunk Road, Pallavaram, Chennai – 600 043, Tamilnadu, India. |
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Factory : |
328, GST Road, Chromepet, Chennai – 600 044, Tamilnadu, India |
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Factory : |
3, Tiruneermalai Main Road, Chromepet, Chennai – 600 044, Tamilnadu,
India |
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Factory : |
2-B, Hosakote Industrial Area, 8th Kilometer, Hosakote Chintamani
Road, Bangalore – 562 114, India |
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Factory : |
H-12/13, MIDC Area, Waluj, Aurangabad – 431 136, India. |
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Depots : |
v Ahmedabad v Bangalore v Bhiwandi v Chandigarh v Chennai v Cuttack v Dehradun v Ernakulam v Ghaziabad v Guwahati v Hubli v Hyderabad v Indore v Jaipur v Jammu v Kolkata v Lucknow v Madurai v Meerut v Mumbai v Nagpur v New Delhi v Panchkula v Patna v Pune v Raipur v Ranchi v Silguri v Thane v Vijaywada v Zirakpur |
DIRECTORS
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Name : |
Mr. T T Jagannathan |
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Designation : |
Chairman |
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Name : |
Mr. T T Raghunathan |
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Designation : |
Executive Vice Chairman |
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Name : |
Mr. R K Tulshan |
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Designation : |
Director |
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Name : |
Dr K R Srimurthy |
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Designation : |
Director |
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Name : |
Mr. B N Bhagwat |
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Designation : |
Director |
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Name : |
Mr. J Srinivasan |
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Designation : |
Director |
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Name : |
Mr. R Srinivasan |
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Designation : |
Director |
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Name : |
Mr. K Vaidyanathan |
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Designation : |
Director |
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Name : |
Mr. K Shankaran |
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Designation : |
Director |
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Name : |
Mr. I Ravindran |
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Designation : |
Wholetime Director |
KEY EXECUTIVES
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Name : |
Mr. S Kalyanaraman |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.03.2007
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Names of Shareholders |
No. of Shares |
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(A) Promoters Holding: |
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(1) Promoters |
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(a) Indian Promoters |
50,81,000 |
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(B) Non Promoters Holding: |
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(3) Institutional Investors |
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(a) Mutal Funds and UTI |
6,772 |
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(b) Banks, Financial
Institutions, Insurance Companies (Central / State Government Institutions / Non
Government Institutions.) |
4,480 |
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(c) Foreign Institutional
Investors |
960 |
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(4) Others : |
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(a) Private Corporate
Bodies |
235,244 |
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(b) Indian Public |
27,10,194 |
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(c) NRIs / OCBs |
71,297 |
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(d) Any Other* |
467 |
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Total |
81,10,414 |
* “Any Other” represents the Shareholdings of the
independent / Professional Director’s who are not in Control of the Company.
Note: Indian Promoters include M/s T T
Krishnamachari and Company represented by its Partners and constituents of TTK
Group. The Constituents of TTK Group include T T Krishnamachari and Company,
TTk Prestige Limited, TTK Tantex Limited and Partners and Relatives of the
Partners of T T Krishnamachari and Company.
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Consumer Products, Pharmaceutical and Medical Devices. |
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Products : |
v Calcium
Supplement Range v Delivery Care
Range v Women’s Care
Range v Haematinic Range v Pain Management
Range v Neurotrophic
Range v Gastro
Intestinal Range v Male Fertility Range v Nutritional
Range v Cardiac Care
Range
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Liquid Products |
Lakhs |
1.110 |
1.200 |
-- |
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Lakhs |
-- |
375.000 |
22.597 |
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Tablets |
Lakhs |
337.750 |
600.000 |
62.369 |
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Lakhs |
-- |
3,400.000 |
549.715 |
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Injectables |
Lakhs |
19.860 |
50.000 |
-- |
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Lakhs |
-- |
100.000 |
120.360 |
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Capsules |
Lakhs |
605.900 |
25.000 |
-- |
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Lakhs |
-- |
600.000 |
75.204 |
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Food Products |
M.T. |
10,000.000 |
5,800.000+ |
2819.040 |
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Granules |
M.T. |
-- |
135.000 |
-- |
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M.T. |
-- |
-- |
137.254 |
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Ointments |
M.T. |
-- |
15.000 |
-- |
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Basic Chemicals /Drugs |
M.T. |
330.788 |
3.800 |
0.084++ |
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M.T. |
-- |
47.244 |
-- |
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Maps and Atlases |
Million
Impressions |
245.000 |
245.000 |
-- |
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Heart Valves |
Nos. |
3,600 |
3,600+ |
4,602 |
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Blood Lancets |
Millions |
-- |
9.000 |
-- |
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Sutures |
Lakh Dozen |
-- |
1.650 |
-- |
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Foley Catheters |
Millions |
-- |
0.900 |
-- |
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Hernia Repair Mesh |
Lakh Sq. Inch. |
5.000 |
5.000 |
1.008 |
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Urinary Bags |
Millions |
-- |
0.600 |
-- |
GENERAL INFORMATION
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Bankers : |
v Bank of Baroda v Corporation Bank v Axis Bank
Limited |
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Facilities : |
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* Secured by hypothecation of movable assets and mortgage of immovable
properties of the Company situated at
Pallavaram on pari-passu first
charge basis.
@ Further secured by a pari-passu second charge on the fixed assets of
the Company.
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
v M/s Aiyar and
Company, Chartered Accountants
New No. 2, (Old No. 184), Rangarajapuram Main Road (1st
Floor),
Kodambakkam, Chennai – 600 024, Tamilnadu, India. v M/s S
Viswanathan, Chartered Accountants
New No. 17 (Old No 8A), Bishop Wallers Avenue (West), Mylapore,
Chennai – 600 004, Tamilnadu, India. |
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Subsidiaries : |
v T.T.
Krishnamachari and Company v Pharma Research
and Analytical Laboratories v TTK Prestige
Limited v TTK LIG Limited v Pack well
Packaging Products Limited v TTK Health Care
Services Private Limited v SSL TTK Limited |
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Group Companies
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v
T.T. Krishnamachari and Company and its Partners and Relatives of the
Partners. v
TTK Prestige Limited v
TTK LIG Limited v
TTK Health Care Services Private Limited v
TTK Services Private Limited v
TTK Tantex Limited v
SSL-TTK Limited v
Pack well Packaging Products Limited v
Pharma Research and Analytical Laboratories v
Prestige House wares India Limited v
Peenya Packaging Products |
CAPITAL STRUCTURE
Authorised Capital:
|
No. of Shares |
Type |
Value |
Amount |
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1,00,00,000 |
Equity Shares |
Rs. 10/- Each |
Rs. 100.000 millions |
Issued, Subscribed & Paid-up Capital:
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No. of Shares |
Type |
Value |
Amount |
|
81,10,414 |
Equity Shares |
Rs. 10/-
Each |
Rs. 81.104
millions |
Note:
81,10,414 Equity Shares of Rs. 10/- Each fully
paid-up (of which 9,42,600 Equity Shares of Rs. 10/-Each were issued as fully
paid up by way of Bonus Shares through Capitalisation of Reserves, 70,295
Equity Shares of Rs. 10/- each allotted as fully paid up , pursuant to the
Scheme of Merger of TTK Chemicals Limited with this Company 13,45,294 Equity
Shares of Rs. 10/- each allotted as fully paid up , pursuant to the Scheme of
merger of TTK Blomed Limited with this Company, 2,35,207 Equity Shares of Rs.
10/- each allotted as fully paid up, pursuant to the Scheme of Merger of TTK
Medical Devices Limited with this Company and 15,00,000 Equity Shares of Rs.
10/- each allotted as fully paid-up to T T Krishnamachari and Company, the
Promoters of the Company on Preferential basis.)
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
81.104 |
66.104 |
66.100 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
399.210 |
298.926 |
294.600 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
480.314 |
365.030 |
360.700 |
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LOAN FUNDS |
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1] Secured Loans |
136.863 |
124.899 |
188.000 |
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2] Unsecured Loans |
0.645 |
10.660 |
16.100 |
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TOTAL BORROWING |
137.509 |
135.559 |
204.100 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
617.823 |
500.589 |
564.800 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
258.415 |
309.595 |
317.600 |
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Capital work-in-progress |
27.020 |
2.727 |
0.000 |
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INVESTMENT |
1.337 |
1.387 |
16.300 |
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DEFERREX TAX ASSETS |
76.134 |
89.133 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
117.600
|
122.829 |
121.400 |
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Sundry Debtors |
216.462
|
187.553 |
189.700 |
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Cash & Bank Balances |
260.179
|
146.416 |
131.400 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
64.735
|
41.653 |
201.300 |
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Total
Current Assets |
658.976
|
498.451 |
643.800 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
346.073
|
371.170 |
406.600 |
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Provisions |
68.446
|
44.368 |
15.400 |
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Total
Current Liabilities |
414.519
|
415.538 |
422.000 |
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Net Current Assets |
244.457
|
82.913 |
221.800 |
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MISCELLANEOUS EXPENSES |
10.460 |
14.834 |
9.100 |
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TOTAL |
617.823 |
500.589 |
564.800 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
2111.389 |
1865.727 |
1562.700 |
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Other Income |
29.167 |
20.504 |
37.300 |
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Total Income |
2140.556 |
1886.231 |
1600.000 |
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Profit/(Loss) Before Tax |
58.439 |
49.831 |
(23.800) |
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Provision for Taxation |
28.430 |
29.798 |
(3.100) |
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Profit/(Loss) After Tax |
30.009 |
20.032 |
(20.700) |
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Expenditures : |
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Excise duty |
1308.360 |
1148.934 |
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Financial Expenses |
740.570 |
656.705 |
1623.800 |
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Depreciation & Amortization |
28.812 |
27.309 |
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Other Expenditure |
4.373 |
3.451 |
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|
Total Expenditure |
2082.115 |
1836.399 |
1623.800 |
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QUARTERLY RESULTS
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PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
|
Type |
1st Quarter |
2nd Quarter
|
3rd Quarter |
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Sales Turnover |
591.100
|
484.300
|
471.600 |
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Other Income |
3.400
|
5.100
|
5.600 |
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Total Income |
594.500
|
489.400
|
477.200 |
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Total Expediture |
576.200
|
476.800
|
446.400 |
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Operating Profit |
18.300
|
12.600
|
30.800 |
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Interest |
4.900
|
4.900
|
4.600 |
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Gross Profit |
13.400
|
7.700
|
26.200 |
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Depreciation |
6.400
|
5.100
|
4.200 |
|
Tax |
4.700
|
1.100
|
9.700 |
|
Reported PAT |
0.001
|
1.500
|
12.300 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt Equity Ratio |
0.37 |
0.54 |
0.69 |
|
Long Term Debt-Equity Ratio |
0.07 |
0.23 |
0.40 |
|
Current Ratio |
1.23 |
1.18 |
1.31 |
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TURNOVER RATIOS |
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Fixed Assets |
4.23 |
3.58 |
2.90 |
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Inventory |
17.83 |
15.58 |
14.15 |
|
Debtors |
10.61 |
10.09 |
6.59 |
|
Interest Cover Ratio |
4.11 |
4.07 |
0.04 |
|
Operating Profit Margin (%) |
4.30 |
4.90 |
1.73 |
|
Profit Before Interest And Tax Margin (%) |
2.95 |
3.47 |
0.07 |
|
Cash Profit Margin (%) |
2.41 |
2.49 |
0.33 |
|
Adjusted Net Profit Margin (%) |
1.06 |
1.05 |
-1.32 |
|
Return On Capital Employed (%) |
12.72 |
14.01 |
0.20 |
|
Return On Net Worth (%) |
6.10 |
6.38 |
-6.31 |
LOCAL AGENCY
FURTHER INFORMATION
MANAGEMENT DISCUSSION
AND ANALYSIS
(A) ECONOMIC AND BUSINESS ENVIRONMENT
The GDP growth for the year 2006-07 was 9.4% as compared to 8% in
the previous year 2005-06. The Industrial sector has grown impressively
propelled by robust growth in the manufacturing sector to attain a growth rate
of 11% and the services sector also grew by around 11%. The investment scenario
looks optimistic, particularly with rising domestic savings rates and FDI
inflows. The Forex reserves (excluding Gold and SDRs) stood at $191.92 billion
at the end of March, 2007 and the inflation rate hovers at around 5%. On the
negative side, Agriculture and allied activities' growth, however, slowed down
to 2.7% in 2006-07. Another concern is the significant increase in the rate of
interest which would push the cost of funds for the corporates and have an
impact on their profitability. The Pharmaceutical formulations market witnessed
a value growth of around 14% during the year and the new products continue to
drive the growth.
(B) OPPORTUNITIES AND
THREATS
Opportunities
* Since Pharmaceutical Industry is growing reasonably well; there is an
opportunity for the Company to grow the business in this segment. Further,
opening up of the Health Insurance Sector and the expected growth in the per
capita income would be the key drivers for the expansion of the Healthcare
Industry of which Pharma Industry is an integral part.
* With the increasing awareness and wider acceptance of herbal therapy,
herbal formulations also provide an opportunity for growth, particularly for
life style related ailments like stress, diabetes, etc., as the Company is
already present in this segment.
* The unique advantage of having an exclusive network for distribution of
OTC products available to the Company can be leveraged for launch of new
products under its own brands which will not only provide improved
profitability but also ensure building of brands for long term sustenance of
the business.
* On the Bio-Medical Devices front, due to the gap between domestic
demand and supply, there is continued dependence on import of quality surgical
implants and this can be gainfully exploited through the existing products like
Heart Valves manufactured by the Company and also through launch of niche
products in this segment. There is also an opportunity available to the Company
for exporting these products to neighbouring countries.
* Considering the size of the market for food products, the Foods
Business of the Company provides good opportunity for growth. There is a
possibility of exploiting the market through launch of value added ready to eat
products. There is also a possibility of further increase in exports.
* Since GIS / GPS related services are gaining momentum, the capabilities
available at the Publications Division will present an opportunity to the
Company for entering this growing segment.
To sum up, since the Company is diversified into more than one segment,
there are quite a few opportunities available for growth in the coming
years.
Threats
* The Product Patent Regime has restricted the access for Indian Pharma
Companies to the latest molecules which were hitherto available for
exploitation by them. However, there will be opportunities for these Companies
to launch products that are out of patents.
* There have been rapidly changing new drug discovery technologies and
processes at the global level and the Indian Pharmaceutical industry being
fiercely competitive requires huge capital Investment in upgrading the
facilities to match international standards. MNCs and Foreign companies have an
advantage over the domestic companies in this regard.
(C) SEGMENTWISE PERFORMANCE
As you know, the Company has three Strategic Business Units (SBUs)
viz., Pharmaceutical Business, Consumer Products Business and Medical Devices
Business.
In addition, the Company is also engaged in Foods and Publishing
Businesses.
They shall now have a look at the performance of individual Business
Segments:
PHARMACEUTICAL BUSINESS
The Ethical Products Business of the Company deals in Pharmaceutical Formulations, both Herbal and Allopathic, in various therapeutic segments. Pharmaceuticals also include Woodwards' Gripewater. Since the product is distributed through the Consumer Products Division of the Company, the same has been covered under the head Consumer Products Business.
Ethical Products Division
The Ethical Products Division of the Company covers Gynecologists,
Physicians, Orthopedists, Cardiologists and General Practitioners and the field
force spread across the country meets around 60,000 doctors every month.
The Ethical Products Division's product range encompasses Calcium
Supplements, Haematinic, Cervical Dilator, Thrombolytic Agents, Rejuvenators,
Multimineral Supplements, Galactagogues, Liver Correctives, Pain Management
Products, Anti-Ulcerantes, etc.
During the year under review, the performance of the Ethical Products
Division has not been upto expectation. Though the newly launched products like
Dolobest Range, Nurobest OD and Rabulcer-D have done reasonably well, the
performance of the old products like Epidosin, Mezica, Nimulase, Streptokinase,
etc., was not very satisfactory and this has affected the overall profitability
of the Division. Further, the performance was also impacted due to increased
attrition rate, particularly in regions like Vijayawada, Hyderabad, Mumbai,
Ahmedabad, Delhi, Guwahati, etc. and static per man productivity. However,
steps have already been initiated for reversing the situation and the
performance is expected to be better during the current year.
Ventura Division
Ventura Division which was established for enhancing the focus on herbal
products portfolio of the Company is now present in 13 Regions across the
country, with coverage of around 30,000 doctors every month. Though the
performance was good, the same could have been better but for the huge
attrition rate. The Company is taking necessary steps for retaining the people
to grow the business further.
Under the Ventura Division, the Company has launched three new products
viz., LYCO-Q (Male Infertility Formulation), ARTHRID OIL (Anti-Arthritis
Formulation) and UTRONORM FORTE (Fortified Version of Poly Herbal Uterine
Tonic).
Animal Welfare Division
The Pharmaceutical Business also has a Veterinary Formulations Division
which essentially caters to the requirements of Veterinarians, Hatcheries,
Poultry Farms and Dairy Farms. Around 9,000 Veterinarians are met every month
by the Field Staff and this Division reaches the customers through a network of
750 Stockists across the country and in Nepal.
The Animal Welfare Division of the Company deals with Liver Correctives,
Calcium and Phosphorus Supplements, Anthelmintics, Antibiotics,
Ectoparasiticides, etc.
The performance of Animal Welfare Division was marginally impacted due to
the Avian Flu in the first quarter of the year under review. However, in view
of the good performance in the subsequent quarters, the overall performance has
been on the expected lines. During the year under review, the Company has
launched a new product viz., IMMULAR (Herbal Immuno Modulator) under this
Division.
CONSUMER PRODUCTS
BUSINESS
The Consumer Products Division (CPD) of the Company deals with the
distribution of products marketed under Company's own brands viz., Woodward's
Gripe Water (WGW) and EVA Range of Cosmetics. In addition, CPD also handles the
National Distribution of Durex/Kohinoor Brand of Condoms manufactured by TTK
LIG Limited and Kiwi / Brylcreem range of Shoe care, Hair care and Toiletry
Products manufactured by M/s Saralee Household and Bodycare (India) Private
Limited.
During the year under review, the performance of the Consumer Products
Division was good. The year under review also saw the Company's entry into Skin
Care Segment, with the launch of a Moisturizer and a Lip Balm under the EVA
brand. Woodward's Gripe Water, the flagship brand of the Company, grew in
excess of 7% in a market which is almost stagnant and it is expected that the
growth process would continue during the current year too.
Last year, the Company launched a Baby Soap under the Woodward's brand
name. Though it is a good product with an attractive packaging, it did not do
as well as anticipated. It sells in pockets now. It is expected that it would gather
momentum gradually.
The entire EVA range maintained its fast growth rate during 2006-07 also.
Two new variants viz., EVA Blush and EVA Snow were added to
the Deodorant category and they are doing well.
The Kohinoor Pink recorded a growth of around 7% and its performance was
affected due to competition from imported brands. However, the value added
products like Kohinoor variants viz., Xtra Time and Triple Xtra and Durex have
recorded good growth. Durex also helped the Company to get shelf-space in
modern format outlets.
The Shoe care range did fairly well by improving its market share.
However, in the hair care category, the growth of Brylcreem Gel was not as
expected due to entry of new brands both in the organized and unorganized
sectors coupled with huge ad-spend by the organized players.
MEDICAL DEVICES / DISPOSABLES
BUSINESS
Heart Valve Division
The performance of the Heart Valve Division during the year under review
has been quite encouraging with a sale of 4695 valves. The efforts put in by
the Company during the last few years for developing the export market have
started yielding results. Trial orders have been received from Thailand,
Bangladesh, Kenya, etc.
The state-of-the-art Manufacturing Facility with R&D Infrastructure
for Heart Valves and other Medical Devices at Trivandrum is nearing completion
and the same would be commissioned shortly. Action is also being taken for
obtaining CE marking for Heart Valves and other Bio-medical Devices.
The animal trials relating to the Improved Heart Valve have been
completed and the initial observation is that the new valve is superior in
performance. The Company is now planning to take up the batch production of the
new model valve for controlled clinical trial which is expected to be cleared
by the Ethics Committee by the end of this calendar year. The new valve is
expected to get the Ethics Committee clearance for commercial production / sale
by the end of 2008.
The training for the fabric weaving for the Graft fabrication relating to
the large diameter Vascular Graft Prosthesis has been completed at South India
Textile Research Association (SITRA) and enough material for clinical trial has
been fabricated. A few batches of the graft have been produced and the same
have been sent to few centers for trials and the initial results are
encouraging. The clinical trial is expected to be completed by the end of this
calendar year.
The project for the development of the Coronary Stent under the New
Millennium Indian Technology Leadership Initiative (NMITLI) is in progress.
The design and Finite Element Analysis (FEA) studies of the Stent have been completed and vendors are also identified. The final prototypes would be ready by the end of this year.
Medical Devices Division
Steps are being taken for disposing of the Medical Devices /
Disposables Undertaking at Waluj (Medical Devices Division) and this exercise
is likely to be completed by end July, 2007.
Biomed Division
In accordance with the approval provided by the Board of Directors and
the Shareholders of the Company, the transfer process relating to the Gloves
Manufacturing Undertaking (Biomed Division) at Chikalthana, Aurangabad, stands
fully completed.
PUBLICATIONS BUSINESS
As mentioned in the last Annual Report, the Company started focusing on
the Publications Business with specific reference to Maps Publications, Digital
Cartography, Tourist Information Books, etc. The Digital Cartography Section
has been further strengthened by adding qualified manpower for updating the
existing titles and also for carrying out customized projects in the area of
map related products / services for Government as well as Corporate
Customers.
Further, considering the potential available for GIS / GPS business, the
Company is in the process of setting up a GIS Infrastructure and this will
focus on the entire gamut of GIS / GPS services. Further, the Company is also
looking for a suitable Technology Partner for taking the GIS / GPS businesses
forward.
FOODS BUSINESS
The performance during the year has been good. The profitability was
marginally affected due to escalation in the input costs.
However, subsequently steps were initiated for revising the selling prices upwards.
In view of the positive trends as above, the outlook for 2007-08 appears
promising.
Income
Sales Turnover
During the year under review, the Company registered a sales turnover of
Rs. 2143.000 millions as against the previous year's turnover of Rs.1902.900
millions, resulting in a growth of around 13%. Almost all the businesses have
shown growth during the year under review.
Other Income
The 'Other Income' stands at Rs. 29.168 millions as against the
previous year's figure of Rs. 20.505 millions. This mainly represents the
profit made on the transfer of Biomed Division (Rs. 5.054 millions) and sale of
machinery at Printing Division (Rs. 9.548 millions). The 'Other Income' also
includes interest on Fixed Deposits amounting to Rs. 7.276 millions earned
during the year under review, as against the previous year's figure of Rs.
3.905 millions.
Expenditure
Goods Consumption
The goods consumption as a percentage of sales for the year
works out to 61.96% as against the previous year's figure of 61.58% and there
is no major variation in the product mix.
Expenses
There has been an increase in the Advertisement and Sales Promotion
expenses to the extent of Rs. 33.183 millions which mainly represents the
higher advertisement & promotional expenses incurred on Woodward's
Gripewater & Baby Bath and EVA range of products.
The expenses also include a sum of Rs. 8.816 millions representing bad
debts written off.
The increase in various expenses is more or less in line with the
increase in sales turnover and the general inflationary trend.
Paid-up Share Capital
During the year under review, 15,00,000 Equity Shares of Rs.10/- each have
been allotted to the Promoters of the Company at a price of Rs.73/- per share
(including a premium of Rs. 63/- per share) on preferential basis and
consequently, the Paid-up Share Capital stands increased from Rs. 66.104
millions to Rs. 81.104 millions.
Reserves & Surplus
There is an increase of Rs.945.00 lakhs in the Share Premium
Account which represents the premium of Rs. 63/- per share collected from the
Promoters of the Company in respect of the preferential allotment of 15,00,000
Equity Shares made to them.
Fixed Assets
There has been an addition of Rs.12.380 millions to Fixed Assets
(including leasehold assets) which mainly represents the amounts incurred for
acquisition of plant & machinery, computers, vehicles, laboratory equipments,
furniture and fixtures, dies, etc.
A sum of Rs. 31.431 millions has been deleted from the net block
consequent to the sale of the Gloves Manufacturing Undertaking (Biomed
Division) at Chikalthana and Rs. 2.176 millions being the book value of the
machineries at Printing Division disposed of. The Capital Work-in-Progress of
Rs. 27.021 millions represents the money spent on the Manufacturing Facility
under construction for Heart Valves and other Bio-medical Devices at
Trivandrum.
Sundry Debtors
There has been an increase in Sundry Debtors from Rs. 187.500
millions to Rs. 216.500 millions which is proportional to the increase in sales
turnover.
Loans and Advances
During the year under review, there has been an increase in the Loans
and Advances from Rs. 41.653 millions to Rs. 64.735 millions. The increase
mainly represents the payment of advance Fringe Benefit Tax amounting to Rs.
16.733 millions and advance Income Tax of Rs. 6.469 millions.
Cash and Bank Balances
During the year under review, there has been an increase in the cash and
bank balances from Rs. 146.400 millions to Rs. 260.200 millions. This
represents the proceeds of the preferential allotment made to the Promoters of
the Company and the sale proceeds of Biomed Division, kept in deposits with
banks.
Fixed Assets
v
Land
v
Leasehold Land
v
Buildings
v
Leasehold Buildings
v
Plant and Machinery
v
Furniture and Fittings
v
Patterns, Dies and Templates
v
Trade Marks
v
Vehicles
The three letters that stand for quality consumer products at affordable
prices. A reputation built across eight decades. An organization that started
out as an indenting agency and grew to what it is today with path-breaking
marketing ideas. Those core values that created TTK into a force to be reckoned
with continue to define the framework of the TTK Group even today.
Tiruvellore Thattai Krishnamachari better known as TTK gave up law,
joining with A R Doraisami Iyengar who was running a consumer goods firm in
Chennai. The firm represented Levers Brothers. When Iyengar died in 1928, TTK
was awarded the Levers Brothers agency. TT Krishnamachari & Co. was set up
in the same year to handle the business and the rest is history!
Today TTK is a totally integrated manufacturing and marketing Group.
While maintaining leadership in specific product categories in India, the TTK
Group reaches out to the world with its core products - kitchenware,
pharmaceuticals, condoms, medical devices, food products etc.
TTK Healthcare Ltd., a part of the TTK Group
was incorporated in 1958 and went public in 1985.
Pharmaceuticals
TTK Healthcare's Pharmaceuticals Division functions through
4 main divisions - Ethical Products Division (EPD), Modern Medicine Division
(MMD), Indian Medicine Division (IMD) and VENTURA.
TTK Healthcare's Pharmaceuticals Division has several achievements under their belt including being...
•
The first Pharmaceutical Company in India to be awarded ISO
certification by BIS
•
The first company to launch technology driven life saving
products like UROKINASE and DOPAMINE
•
The first to develop a product based on traditional
knowledge - LACTARE for Lactation
The Pharmaceuticals
Division's product range comprises many path-breaking medicines like:
•
Programmed release products like RABULCER D for gastric
reflux and ulcer
•
Anti-inflammatory products like Nimulase and Dolobest OD
based on special coating technology
•
TEFROLIV FORTE for hepatic disorders
•
ELCARIM for proper growth and development of babies
•
DELIVERA for dry skin
•
ARTHRID for arthritis
The Division has also
developed products based on the ancient and traditional knowledge of ayurveda.
The Pharmaceuticals Division
is backed by a formidable strength of over 600 well trained field staff who
form the interface between the medical fraternity and the pharmaceutical
industry. TTK Healthcare's Pharmaceutical products enjoy unsolicited patronage
from all segments of doctors. A highly efficient distribution network, with
depots across all the states ensures that TTK Healthcare's pharmaceutical
products are made available to every nook and corner of India.
Foods
TTK Ready-to-fry Snack Pellets are available in a variety of
flavors, shapes, colours and designs.
TTK manufactures Potato and Cereal based pellets in its
state-of -the-art facility, for markets in India and abroad. The production
unit is designed not only to assure the highest quality but also to ensure
consistency in quality.
The Cereal and Potato based pellets come in various shapes,
such as Wheels (mini & penta), Tubes (mini, short, long & square),
Sticks, 3 Rings, Ribbed, Star, Checks, Chips, Drops etc besides Onion Rings.
The customer base for TTK Ready-to-fry Snack Pellets
includes multinationals and the trade in India. The Exports division services
the foreign countries and the products are regularly exported to the overseas
markets.
Over View
TTK Healthcare's most significant contribution to healthcare
is the manfacture and distribution of India's first indigenous heart valve
prosthesis - the tilting-disc TTK Chitra Heart Valve. This is the only
Indian-made heart valve and is the most price-friendly in the world. So far,
nearly 18,000 TTK Chitra valves have been successfully implanted in patients.
Design and Development
Unique in design, construction and fabrication, the TTK Chitra Heart Valve
Prosthesis is one of the extensively researched, tested and clinically
evaluated device in India.
Initially conceived in 1978, the heart valve being a
critical implant, went through the most painstaking development for 12 years at
the prestigious Sree Chitra Tirunal Institute for Medical Sciences and
Technology (SCTIMST), Trivandrum, India - an autonomous Institute under the
Department of Science and Technology, Government of India. The development also
followed international protocols applicable to heart valve prosthesis.
Designed for long life, the development of the TTK Chitra
Heart Valve was based on accelerated durability tests, amply confirmed by
measurement of wear of valves explanted after many years of animal
implantation. It is no mean achievement that the projected durability of the
TTK Chitra Heart Valve far exceeds the life span of even the youngest
recipient.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject are
derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
The 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.
The Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 39.96 |
|
UK Pound |
1 |
Rs. 78.66 |
|
Euro |
1 |
Rs. 63.31 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
|
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
70 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, they have no basis upon which to
recommend credit dealings |
No Rating |
|