1. Summary Information
|
Country |
|
||
|
Company Name |
MAX INDIA LIMITED |
Principal Name 1 |
Mr. Analjit Singh |
|
Status |
Good |
Principal Name 2 |
Dr. S. S. Baijal |
|
Registration # |
008031 |
||
|
Street Address |
Bhai Mohan Singh Nagar, Railmajra, Tahsil Balachur,
District Nawanshahr – 144 533, |
||
|
Established Date |
24.02.1988 |
SIC Code |
-- |
|
Telephone# |
91-1881-289607/289611 |
Business Style 1 |
Manufacturer |
|
Fax # |
-- |
Business Style 2 |
Marketer |
|
Homepage |
Product Name 1 |
Films Supported with Polymers of Propylene |
|
|
# of employees |
3000 (Approximately) |
Product Name 2 |
Carbamazepine |
|
Paid up capital |
Rs.
464,749,466/- |
Product Name 3 |
Azithromycin |
|
Shareholders |
Promoter group (36.50%) Public Shareholding (63.50%) |
Banking |
Yes Bank Limited |
|
Public Limited Corp. |
YES |
Business Period |
23 Years |
|
IPO |
YES |
International Ins. |
- |
|
Public |
YES |
Rating |
A (63) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Associates |
|
New Delhi House
Services Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
1,309,530,000 |
Current Liabilities |
413,566,000 |
|
Inventories |
254,600,000 |
Long-term Liabilities |
6,039,450,000 |
|
Fixed Assets |
1,841,356,000 |
Other Liabilities |
26,904,000 |
|
Deferred Assets |
0 |
Total Liabilities |
6,479,920,000 |
|
Invest& other Assets |
26,294,072,000 |
Retained Earnings |
21,887,889,000 |
|
|
|
Net Worth |
23,219,638,000 |
|
Total Assets |
29,699,558,000 |
Total Liab. & Equity |
29,699,558,000 |
|
Total Assets (Previous Year) |
22,383,160,000 |
|
|
|
P/L Statement as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
3,303,233,000 |
Net Profit |
(5,877,000) |
|
Sales(Previous yr) |
3,537,551,000 |
Net Profit(Prev.yr) |
218,347,000 |
MIRA INFORM REPORT
|
Report Date : |
20.04.2011 |
IDENTIFICATION DETAILS
|
Name : |
MAX INDIA LIMITED |
|
|
|
|
Registered Office : |
Bhai Mohan Singh Nagar, Railmajra, Tahsil Balachur,
District Nawanshahr – 144 533, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2010 |
|
|
|
|
Date of Incorporation : |
24.02.1988 |
|
|
|
|
Com. Reg. No.: |
16-008031 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L24223PB1988PLC008031 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
PTLM11648A |
|
|
|
|
Legal Form : |
Public Limited Liability of the Company. The company shares are listed on stock exchange. |
|
|
|
|
Line of Business : |
Manufacturing and Marketing of Pharmaceuticals and
specialty products comprising of BOPP, Metalized Films and Leather Finishing
Foils. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 93000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well
established and diversified company having fine track. Available information indicates high
financial responsibility of the company.
Trade relations are fair.
Financial position is good.
Payments are correct and as per commitments. The company can
be considered good for any normal business dealings. It can be
regarded as a promising business partner in a medium to long – run. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office/Factory : |
Bhai Mohan Singh Nagar, Railmajra, Tahsil Balachur, District
Nawanshahr – 144 533, |
|
Tel. No.: |
91-1881-289607/289611 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head Office : |
11th Floor, |
|
Tel. No.: |
91-124-26561717 |
|
E-Mail : |
|
|
|
|
|
Corporate Office : |
Max House, 3rd Floor, 1, Dr. Jha Marg, Okhla, |
|
Tel. No.: |
91-11-26933610 |
|
Fax No.: |
91-11-26933620/ 26324126 |
|
Email: |
|
|
Website: |
|
|
|
|
|
Factory : |
Max
Pharma No. 18, 56 – 58, KIADB Industrial Area, Nanjangud, |
|
|
|
|
Overseas
Office 1 : |
Covenhan House, |
|
Tel No.: |
91-44 1932 862 444 |
|
Fax No.: |
91-44 1932 862 445 |
|
|
|
|
Overseas
Office 2 : |
Frente al Centro Nacional De Rehabitacion (Center – La Uruca, |
|
Tel No.: |
91-506 2904242 |
|
Fax No.: |
91-506 2963531 |
|
|
|
|
Overseas
Office 3 : |
110, |
|
Tel No.: |
91-19-19 4243302 |
|
Fax No.: |
91-1- 919 852 5574 |
|
|
|
|
Overseas
Office 4 : |
5-A, |
|
Tel No.: |
91-8-52 93172627 |
|
|
|
|
Overseas
Office 5 : |
|
|
Tel No.: |
91-1-7322876575 |
|
Fax No.: |
91-1-7322876574 |
|
|
|
|
Branch 1 : |
167, Ready Money Terrace, Worli Naka, Worli, Mumbai – 400
018, |
|
Tel. No.: |
91-22-66604447 / 48 / 49 |
|
Fax No.: |
91-22-24930936 |
|
E-Mail : |
|
|
|
|
|
Branch 2 : |
SCO 86-87, Madhya Marg, Sector 8-C, |
|
Tel No.: |
91-172-2544232/2544320/2544326 |
|
Fax No.: |
91-172-2543435/2544559 |
|
|
|
|
Other Branch: |
|
DIRECTORS
As On : 31.03.2010
|
Name : |
Mr. Analjit Singh |
|
Designation : |
Chairman And Managing Director |
|
Date of Birth/Age : |
53 years |
|
Experience : |
29 years |
|
Qualification : |
BA, BS, MBA, (Boston) |
|
Date of Appointment : |
30.10.2001 |
|
|
|
|
Name : |
Dr. S. S. Baijal |
|
Designation : |
Chairman Emeritus |
|
|
|
|
Name : |
Mr. Aman Mehta |
|
Designation : |
Non-executive
Director |
|
|
|
|
Name : |
Mr. Leo Puri |
|
Designation : |
Non-executive
Director |
|
|
|
|
Name : |
Mr. S.K. Bijlani |
|
Designation : |
Non-executive
Director |
|
|
|
|
Name : |
Mr. Ashwani
Windlass |
|
Designation : |
Non-executive
Director |
|
|
|
|
Name : |
Mr. N. C. Singhal |
|
Designation : |
Non-executive
Director |
|
|
|
|
Name : |
Mr. Rajesh Khanna |
|
Designation : |
Non-executive
Director |
|
|
|
|
Name : |
Mr. K. Narasimha
Murthy |
|
Designation : |
Non-executive
Director |
|
|
|
|
Name : |
Mr. Piyush Mankad |
|
Designation : |
Non-executive
Director |
|
|
|
|
Name : |
Mr. Anuroop Singh |
|
Designation : |
Vice Chairman |
|
|
|
|
Name : |
Dr. Omkar Goswami |
|
Designation : |
Non-executive Director
|
KEY EXECUTIVES
|
Name : |
Mr. V. Krishnan |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2010
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
6,391,789 |
2.75 |
|
|
78,473,665 |
33.75 |
|
|
84,865,454 |
36.50 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
84,865,454 |
36.50 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
2,802,631 |
1.21 |
|
|
31,360 |
0.01 |
|
|
45,750 |
0.02 |
|
|
70,534,88 |
30.34 |
|
|
73,414,629 |
31.58 |
|
|
|
|
|
|
7,403,146 |
3.18 |
|
|
|
|
|
|
19,210,840 |
8.26 |
|
|
3,307,366 |
1.42 |
|
|
44,282,975 |
19.05 |
|
|
3,066,839 |
1.32 |
|
|
626,049 |
0.27 |
|
|
5,616 |
- |
|
|
40,149,631 |
17.27 |
|
|
434,840 |
0.19 |
|
|
74,240,327 |
31.92 |
|
Total Public shareholding (B) |
147,618,956 |
63.50 |
|
Total (A)+(B) |
232,484,410 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
Total (A)+(B)+(C) |
232,484,410 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of Pharmaceuticals and
speciality products comprising of BOPP, Metallised Films and Leather
Finishing Foils. |
||||||||
|
|
|
||||||||
|
Products : |
|
PRODUCTION STATUS (As On : 31.03.2010)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
|
|
|
|
|
BOPP Film |
Tonnes |
29150 |
29646.56 |
|
Soft Leather
Finishing Foil |
Millions [SFT] |
591 |
69.81 |
|
|
|
|
|
GENERAL INFORMATION
|
No. of Employees : |
3000 (Approximately) |
|||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
Bankers : |
|
|||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Price Waterhouse Chartered Accountants |
|
|
|
|
Subsidiaries: |
|
|
|
|
|
Associates |
|
CAPITAL STRUCTURE
As On : 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
460000000 |
Equity Shares |
Rs. 2/- each |
Rs. 920.000 millions |
|
800000 |
Preference Shares |
Rs. 100/- each |
Rs. 80.000 millions |
|
|
Total |
|
Rs. 1000.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
232374733 |
Equity Shares |
Rs. 2/- each |
Rs. 464.749
millions |
|
|
|
|
|
Notes
Paid
up Share Capital includes:
- 5,76,60,400
Equity Shares of Rs. 2/- each (Previous year 57660400 Equity Shares of Rs.
2/ each) allotted as fully paid up by way of bonus shares out of Securities
Premium Account; and
- 1468037
Equity Shares of Rs. 2/- each (Previous year 1449925 Equity Shares of
Rs.2/- each) allotted under employees stock option plan
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
464.749 |
444.061 |
443.485 |
|
|
2] Warrants
against Share Capital |
867.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
21887.889 |
20179.477 |
19994.343 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
23219.638 |
20623.538 |
20437.828 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
810.275 |
1005.875 |
1213.393 |
|
|
2] Unsecured Loans |
5229.175 |
8.261 |
1750.653 |
|
|
TOTAL BORROWING |
6039.450 |
1014.136 |
2964.046 |
|
|
DEFERRED TAX LIABILITIES |
26.904 |
0.000 |
120.014 |
|
|
|
|
|
|
|
|
TOTAL |
29285.992 |
21637.674 |
23521.888 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1841.356 |
1742.733 |
1740.789 |
|
|
Capital work-in-progress |
223.963 |
256.005 |
52.154 |
|
|
|
|
|
|
|
|
INVESTMENT |
25825.615 |
16903.046 |
20645.355 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
254.600
|
280.431 |
276.086 |
|
|
Sundry Debtors |
612.008
|
528.974 |
615.247 |
|
|
Cash & Bank Balances |
144.350
|
1663.320 |
75.719 |
|
|
Other Current Assets |
0.263
|
4.993 |
0.000 |
|
|
Loans & Advances |
552.909
|
666.806 |
575.058 |
|
Total
Current Assets |
1564.130
|
3144.524 |
1542.110 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
255.277
|
308.981 |
|
|
|
Other Current Liabilities |
58.578
|
21.868 |
396.193 |
|
|
Provisions |
99.711
|
83.788 |
89.396 |
|
Total
Current Liabilities |
413.566
|
414.637 |
485.589 |
|
|
Net Current Assets |
1150.564
|
2729.887 |
1056.521 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
244.494 |
6.003 |
27.069 |
|
|
|
|
|
|
|
|
TOTAL |
29285.992 |
21637.674 |
23521.888 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
3303.233 |
3537.551 |
2842.942 |
|
|
|
Income from Investment Activities |
205.975 |
471.998 |
691.796 |
|
|
|
Other Income |
121.178 |
189.698 |
218.890 |
|
|
|
TOTAL (A) |
3630.386 |
4199.247 |
3753.628 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing and Other Expenses |
3321.080 |
3583.922 |
2890.985 |
|
|
|
Increase or decrease in Stock |
11.089 |
1.887 |
[50.349] |
|
|
|
Diminution in value of Investments and
Doubtful Advances to Subsidiary |
0.853 |
226.217 |
0.000 |
|
|
|
TOTAL (B) |
3333.022 |
3812.026 |
2840.636 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
297.364 |
387.221 |
912.992 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
145.558 |
162.483 |
145.952 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
151.806 |
224.738 |
767.040 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
125.988 |
120.599 |
113.892 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
25.818 |
104.139 |
653.148 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
31.695 |
(114.208) |
34.102 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
(5.877) |
218.347 |
619.046 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
6871.695 |
6653.348 |
6034.302 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
6865.818 |
6871.695 |
6653.348 |
|
|
|
|
|
|
|
|
|
|
EXPORT VALUE |
527.285 |
655.751 |
627.369 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
462.130 |
514.003 |
409.402 |
|
|
|
Stores & Spares |
34.316 |
26.429 |
24.060 |
|
|
|
Capital Goods |
5.444 |
107.509 |
81.172 |
|
|
|
Others |
0.000 |
0.115 |
0.000 |
|
|
TOTAL IMPORTS |
501.890 |
648.056 |
514.634 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(0.03) |
0.98 |
2.90 |
|
QUARTERLY RESULTS
(Rs.
In Millions)
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
1017.100 |
983.400 |
1146.700 |
|
Total Expenditure |
962.700 |
1063.500 |
1142.800 |
|
PBIDT (Excl OI) |
54.400 |
(80.100) |
3.900 |
|
Other Income |
191.500 |
124.400 |
127.900 |
|
Operating Profit |
245.900 |
44.300 |
131.800 |
|
Interest |
179.400 |
166.600 |
160.500 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
66.500 |
(122.300) |
(28.700) |
|
Depreciation |
35.000 |
35.600 |
37.500 |
|
Profit Before Tax |
31.500 |
(157.900) |
(66.200) |
|
Tax |
59.800 |
31.600 |
2.300 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(28.300) |
(189.500) |
(68.500) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
(28.300) |
(189.500) |
(68.500) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
(0.16)
|
5.20 |
16.49 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.78
|
2.94 |
22.97 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.76
|
2.13 |
19.90 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.00
|
0.01 |
0.03 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.28
|
0.07 |
0.16 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.78
|
7.58 |
3.18 |
LOCAL AGENCY FURTHER INFORMATION
STANDALONE RESULTS
Fiscal 2009-10 was
a year of consolidation for Max Specialty Films (MSF), the Specialty Packaging Manufacturing
division of Max India Limited. All BOPP production lines at MSF operated at
100% capacity utilization. During the year, sales volume of BOPP Films improved
to 29.7 KTA compared to 28.5 KTA in 2008-09. In FY 2009-10, net sales dropped
by 7% year-on-year at Rs. 3300.000 millions in 2009-10 against Rs. 3540.000
millions for 2008-09 owing to lower sales realization which is directly linked
to crude prices.
Raw Material
prices has also witnessed a down trend owing due to decline in global crude prices.
Further, the competitive landscape became stiffer with enhanced production
capacity in the domestic market raising domestic supply to 325 KTA as on March
2010 relative to 235 KTA in the previous year.
The Company made a
marginal loss after tax of Rs.6.000 millions in the current year as compared
with a profit of Rs. 218.000 millions in the previous year. The reduction in
profit was mainly on account of lower investment income resulting from
deployment of treasury funds to support our businesses, interest expense
incurred on compulsorily convertible debentures and increase in employee stock
option cost.
MANAGEMENT DISCUSSION AND ANALYSIS
INTRODUCTION
Max India Limited
(‘Max India’ or ‘the Company’) is a bouquet of different businesses linked by a
commitment to people and customer service, and is working towards becoming one
of India’s most admired companies for service excellence.
The Company’s core
portfolio comprises businesses that deal with betterment and protection of
life. This includes:
Max New York Life
Insurance Company Limited (MNYL): This is a Joint Venture with New York Life,
a Fortune 100 company. Incorporated in 2000, MNYL is one of India’s leading
life insurance companies in the private sector. It offers both individual and
group life insurance solutions. Through its network of different distribution
channels and flexible product solutions, MNYL focuses on developing a life time
relationship with its customers and guides them to meet various financial needs
across different stages of their lives.
Max Healthcare
Institute Limited (MHC): MHC is a leading healthcare provider of standard,
seamless, integrated and international class healthcare services. It is
committed to the highest standards of medical and service excellence, patient care,
scientific research and medical education. MHC operates eight facilities in
Delhi and the National Capital Region (NCR), offering multi and super specialty
services in over 30 medical disciplines.
Max Bupa Health
Insurance Company Limited (MBHI): This is a Joint Venture with the Bupa Group,
a leading international health and care company with a legacy of providing
specialized healthcare services for over 60 years. MBHI is at an inception
stage and has just commenced commercial operations in 2009-10. The Company aims
to become the most admired health insurance company in India by delivering high
quality health insurance products and ensuring consistent customer experience.
Max Neeman Medical
International Limited (MNMI): This Company provides clinical research services
across the entire value chain of new drug development to pharmaceutical,
biotech and clinical research customers, both in India and abroad. MNMI
continues to focus on developing alliances with mid-sized pharma and biotech
companies to transit their drug development work to India. It has five regional
offices in India, and a business development office in the USA.
The businesses in
this core portfolio have significant long term value propositions. Most of
these enterprises also have fairly long gestation periods — when growth has to
be channeled in a focused manner through well calibrated development strategies
and investments.
During the
development phase, these businesses create the right products and services, and
develop strong customer relations across a sizeable base. They focus on
perfecting customer services, streamlining internal processes, and to
strategically position and build their
brands. Essentially, it is a period when the building blocks are put in place
for profits in the future. The businesses in Max India’s core portfolio
mentioned above, are today in different stages of growth within the development
phase. In addition, Max India has a well established profitable manufacturing
business.
Max Specialty
Films (MSF): This business specializes in manufacturing a wide range of sophisticated
barrier and packaging films. The biaxially oriented polypropylene film (BOPP)
division of MSF has an installed capacity of 29,000 metric tons per annum.
MSF’s leather finishing foil business division manufactures a range of leather
finishing and laminating foils. Both businesses have well established customer
relationships with marquee clients.
PERFORMANCE HIGHLIGHTS
With the economy
stabilising, the life insurance industry in India is moving to a more mature
and distinctly different phase. In this environment, MNYL has adopted its
business strategy to strengthen its position as a differentiated,
customer-centric life insurance provider. In doing so, MYNL has delivered
results.
Performance Across
India
In 2009-10, the
North Zone continued to be the largest contributor to adjusted first year
premium of MYNL with a share of 39%. The West Zone was the second largest with
28% share, followed by the South with 20% and the East with 13% share.
OPERATIONS
MNYL remains
committed to building India’s most admired life insurance company. Given the
slowdown in 2008-09 and 2009-10, the Company’ business strategy saw a
transformation from a single minded focus on growing the customer base to
greater emphasis on internal systems and cost management. The strategy in 2009-
10 focused on five key elements:
Enhanced
productivity and efficacy of distribution
Superior customer
service at optimal costs
Development of
appropriate products
Building a strong
brand with a focus on quality
Internal strength
through people development
Distribution
Channels
MNYL has always
believed that a country as vast and diverse as India requires a multi-channel
distribution trategy. Though the agency
channel continues to be the core distribution medium, other channels complement
it effectively. Because of the Company’s focus on multi-channels, the share of
agency in total sales reduced from 65% in 2008-09 to 62% in 2009-10.
Concurrently, the share of third party distribution increased to 27% in
2009-10; emerging market channels grew to 7%; the DST channel grew 3%
respectively. Chart B gives the data.
After significant
expansion in 2008-09, the agency distribution channel focused on consolidation
and improvement in efficiency during 2009-10. The agency base was rationalised
and the total number of agents reduced by 14% in 2009-10. Today, MNYL is
looking at using its network to improve resource utilisation and, thus, more
customers at a lower cost.
2009-10 also saw significant
developments in partnership channels. Today, this channel services over 1
million customers and has access to over 5 million customers through 4,000
point of sales. As on 31 March 2010, the channel had 27 active partners, of
which 20 are exclusive distribution relationships.
While Max New York
life has always complied with the rural and social obligations it has always
seen rural as an opportunity rather than merely a compliance exercise. This
year too, the Company developed its distribution reach for emerging markets.
The Company issued over 2.7 lakh policies in rural areas during 2009-10, which
contributed to 29% of the total policy issuances. The emerging markets
distribution channel tied up with two urban co-operative banks and six district
central co-operative banks during 2009-10. In April 2010, MNYL tied up with six
additional urban co-operative banks. Today, the Company has ongoing
relationships with one multi-state scheduled co-operative bank, one state
co-operative bank, eight urban co-operative banks and 21 district central
co-operative banks. MNYL can reach 40 lakh customers through a network of over
615 bank branches.
The bancassurance
channel achieved a major breakthrough in 2009-10 which was formalized recently
in May 2010. MNYL forged a 10-year strategic relationship with Axis Bank.
Through this partnership, MNYL expects to garner an additional base of 20 lakh
customers in the next five years.
Product Portfolio
As discussed earlier,
the slowdown in the last two years impacted consumer sentiments, leading to a
significant shift in product preference towards lower equity market risk based
products. The Company proactively responded to these changes and developed new
products. Consequently, the contribution of ULIPs, which have greater exposure
to the equity market, in total new sales reduced from 85% in 2007-08 to 74% in
2008-09, and then to 73% in 2009-10.
MNYL responded to
these changes and strengthened its product portfolio with a mix of ULIPs and
traditional, longer term products. The
Company launched the Max New York Life Secure Dreams, the first universal life
product in the Indian market, which offers the best of traditional as well as
unit linked life insurance products. Secure Dreams has been specially designed
to address the consumers’ need of capital preservation and growth. It provides
an alternative investment option for those who do not want to bear risk of an
inherently volatile stock market.
The Company
further strengthened its portfolio by launching eight new products. These have
helped MNYL to balance its portfolio between unit-linked and non-unit-linked
solutions.
New guidelines
from IRDA on the ‘Net Reduction in Yield’ provided MNYL with an opportunity to
re-evaluate some of its existing product offerings — by de-cluttering its ULIP
offerings to provide a better product suite to its customers. In a significant
development, during 2009-10, MNYL laid strong emphasis on child plans with a
focus on parents in the age group of 25-44 years. It launched two new child
ULIPs, Shiksha Plus and Magic Builder. Together, these child plans contributed
almost one third of the AFYP during 2009-10. Fortune Builder, the new flagship
unit-linked endowment plan was designed with an innovative charge structure to
suit the needs across different customer segments. The portfolio for retirement
plans was strengthened with the launch of Smart Invest Pension Super, which has
been well accepted by both distributors as well as the customers. MNYL now has
one of the most comprehensive and balanced suite of products to meet various
life stage needs of life insurance customers.
OUTLOOK
The life insurance
industry is emerging out of the slowdown in 2008-09 and 2009-10. While growth
is expected in 2010-11, there will be significant shifts in the nature of
demand and products, especially on account of significant regulatory changes
from September 2010.
In this milieu,
customer centricity will be even more important. Retaining existing customers
and increasing their loyalty will provide companies with the opportunity to
both cross-sell and upsell. Moreover, Indian life insurance companies will have
to focus on cost efficiency and productivity rather than distribution
expansion. Much of the growth in the case of mature players is expected by
increasing agent productivity.
Bancassurance will
gain even more importance in life insurance distribution. As stated earlier,
MNYL has entered into a major tieup with Axis Bank to leverage this channel.
The child segment
has seen many new entrants in the recent past with varied product offerings.
This segment will continue to be lucrative for life insurers with parents
considering their children’s security as one of the main reasons to save.
With new regulations
for ULIPs, there could be a movement towards a more balanced portfolio by life
insurers with greater focus on protection orientation.
UNAUDITED FINANCIAL RESULTS FOR
THE QUARTER ENDED 31.12.2010
(Rs. in millions)
|
Sr. No. |
Particular |
Unaudited |
Unaudited |
|
|
|
Quarter
ended 31.12.2010 |
Nine
Months Ended 31.12.2010 |
|
1. |
Gross
Sales / Income |
|
|
|
|
a. Net Sales (Net of Excise and Discounts) |
11.026 |
29.320 |
|
|
b. Other Operating Income |
0.441 |
1.189 |
|
|
c. Income from Investment Activities |
0.946 |
2.856 |
|
|
Total
Income (a+b) |
12.413 |
33.365 |
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
a) (Increase) / Decrease in Stock in Trade and Work In
Process |
(0.020) |
(0.358) |
|
|
b) Consumption of Raw Materials (Net) |
7.414 |
20.032 |
|
|
c) Purchase of Traded Goods |
0.000 |
0.000 |
|
|
d) Employee Cost |
1.466 |
4.763 |
|
|
e) Depreciation |
0.375 |
1.081 |
|
|
f) Other Expenditure |
2.568 |
7.253 |
|
|
g) Total
Expenditure (a to f) |
11.803 |
32.771 |
|
|
|
|
|
|
3. |
Profit From Operations before Other Income, Interest and
Exceptional Items (1-2) |
0.610 |
0.594 |
|
|
|
|
|
|
4. |
Other Income |
0.333 |
2.545 |
|
|
|
|
|
|
5. |
Profit Before Interest and Exceptional Items (3+4) |
0.943 |
3.139 |
|
|
|
|
|
|
6. |
Interest |
1.605 |
5.065 |
|
|
|
|
|
|
7. |
Profit After Interest but before Exceptional Items (5-6) |
(0.662) |
(1.926) |
|
|
|
|
|
|
8. |
Exceptional Items |
-- |
-- |
|
|
|
|
|
|
9. |
Profit from Ordinary Activities before Tax (7+8) |
(0.662) |
(1.926) |
|
|
|
|
|
|
10. |
Tax
Expense |
0.023 |
0.937 |
|
|
|
|
|
|
11. |
Net Profit from Ordinary Activities after Tax (9-10) |
(0.685) |
(2.863) |
|
|
|
|
|
|
12. |
Extraordinary Item (net of expense) |
-- |
-- |
|
|
|
|
|
|
13. |
Net Profit for the period (11-12) |
(0.685) |
(2.863) |
|
|
|
|
|
|
14. |
Paid-up Equity Share Capital (Face Value of Rs.10/- Each) |
4.650 |
4.650 |
|
|
|
|
|
|
15. |
Reserves Excluding Revaluation Reserve |
-- |
-- |
|
|
|
|
|
|
16. |
Basic
and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised |
(0.029) |
(0.123) |
|
|
|
|
|
|
17. |
Public
Shareholding |
|
|
|
|
-Number of Shares |
147618956 |
147618956 |
|
|
- Percentage of Shareholding |
63.50% |
63.50% |
|
|
|
|
|
|
18. |
Promoters
and Promoter Group Shareholding |
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
- Number of Shares |
26859275 |
26859275 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
31.65% |
31.65% |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
11.55% |
11.55% |
|
|
|
|
|
|
|
b)
Non Encumbered |
|
|
|
|
- Number of Shares |
58006179 |
58006179 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of Promoter and Promoter Group) |
68.35% |
68.35% |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
24.95% |
24.95% |
Notes :
1 During the
quarter ended December 31, 2010, Max India Limited “the Company") made an
additional investment of Rs. 48.500 millions in the equity share capital Of its
subsidiary. Max New Yark Life Insurance Company Limited. (“MNYL”), taking the total
investment of the Company in MNYL to Rs. 14665.000 millions.
2 During the
quarter the Company has successfully commissioned 4600 Metric Tonnes Per Annum
plant for value added products under Specialty Plastic Products segment this
has achieved 11s rated capacity utilization
3 During the
quarter, the Company has expensed off Rs 10.200 millions as managerial
remuneration in accordance with the resolutions passed by the Remuneration
Committee of Board of Directors and Shareholders pending approval from Central
Government
4 Interest and
Financial Charges include Rs. 156.600 millions for the current quarter
(Corresponding prevlous quarter - NII) and Rs 469.700 millions for 9 months
ended December 31 2010 (Corresponding previous period - Nil) on account of
interest on 12%
Compulsorily Convertible Debentures which will be converted into equity shares
on or before June 10 2011.
5 Tax expense
includes provision for current tax and deferred tax
6 During the quarter
ended December 31, 2010, 10 investor complaints were received and addressed.
There are no Investor complaints pending at the beginning and end of the
quarter.
7 Previous
period's figures have been regrouped /reclassified town form to current period’s
classification.
8 These un-audited
results for the quarter ended December 31, 2010 have been reviewed by the Audit
Committee at the meeting held an February 10, 2011 and have been approved by
the Baard of Director of Max India Limited at the meeting held on February 11,
2011. The Statutory Auditors have conducted a "Limited Review of these
results in terms of Clause 41 of the Listing Agreement.
SEGMENT WISE REVENUE, RESULTS
AND CAPITAL EMPLOYED UNDER CLAUSE 41 OF LISTING AGREEMENT
(Rs. in millions)
|
Sl. No. |
|
Particulars |
Quarter Ended |
Nine
Months Ended |
|
|
31.12.2010 |
31.12.2010 |
||
|
|
(Un-audited) |
(Un-audited) |
||
|
1 |
|
Segment Revenue (Net of Excise & Other Taxes) |
|
|
|
|
|
|
|
|
|
|
|
a) Specialty Plastic Products |
11.467 |
30.509 |
|
|
|
b) Business Investments |
0.946 |
2.856 |
|
|
|
c) Unallocated Income |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
Total |
12.413 |
33.365 |
|
|
|
|
|
|
|
2 |
|
Segment Results |
|
|
|
|
|
|
|
|
|
|
|
a) Specialty Plastic Products |
1.307 |
2.897 |
|
|
|
b) Business Investments |
0.937 |
2.792 |
|
|
|
|
|
|
|
|
|
Total |
2.244 |
5.689 |
|
|
|
|
|
|
|
|
|
Less :Interest |
1.605 |
5.065 |
|
|
|
Less : Other Unallocable Expenses and Extra Ordinary Items |
1.301 |
2.550 |
|
|
|
Net of Unallocable Income |
|
|
|
|
|
Net Profit (+) /
Loss(-) before Tax |
(0.662) |
(1.926) |
|
|
|
|
|
|
|
3 |
|
Capital Employed (Segment Assets - Segment Liabilities) |
|
|
|
|
|
|
|
|
|
|
|
a) Specialty Plastic Products |
32.632 |
32.632 |
|
|
|
b) Business Investments |
207.387 |
207.387 |
|
|
|
c) Unallocated Income |
(11.793) |
(11.793) |
|
|
|
|
|
|
|
|
|
Total |
228.226 |
228.226 |
Fixed
Assets:
- Land (Freehold)
- Building
- Leasehold Improvements
- Plant and Machinery
- Furniture, Fittings and Equipments
- Vehicles
- Software
- Previous Years
- Capital Work in Progress
News
Press Release
Max India Foundation awarded ‘Best Corporate Service Responsibility
Practices Award’ at the Social and Corporate Governance Awards
Max India Foundation, the CSR arm of Max India group, has been awarded the ‘Best Corporate Service Responsibility Practices Award’ at the 6th edition of the Social and Corporate Governance Awards. Ms. Mohini Daljeet Singh, Head, Max India Foundation received the award on behalf of Max India Foundation at an awards ceremony held at Taj Lands End Mumbai today.
On receiving the award, Ms. Mohini Daljeet Singh, Head, Max India Foundation, said, “I am extremely honored to receive this award on behalf of Max India Foundation. Max India Foundation was started in the year 2008 and in the span of three years we have spread our wings across the country and have undertaken all efforts to reach out to the underprivileged and needy. I take this award as recognition of all our efforts and a motivation to work better in future. I would like to thank our Group Chairman, Mr. Analjit Singh, who with his passion to give back to society has been very encouraging and supportive of MIF efforts.”
The Social and Corporate Governance awards recognizes and honours best Practices in Corporate and Social Responsibility and the awards are currently in their sixth year. The award categories included –
· Organization that offers the Best Return to Investors
· Organization that offers the Best Return to the Consumers.
· Organization that offers the Best Return to Channel Partner / Ancillary Development.
· Best Corporate Social Responsibility Practice.
On 9th Feb Max India Foundation was also awarded as winner of the ‘Best in Corporate Social Responsibility Practice’ at the ‘Stars of the Industry 5th INDY'S AWARDS’. This category has been introduced for the first time by the organizers.
About Max India
Foundation (MIF):
Max India Foundation is the social service arm of Max India group with its main focus on Health, Children, and Environment. Max India Foundation provides Treatment and Care for those Below the Poverty Line, the Needy and Deserving. They have touched more than 50054 lives across 138 locations through 2,500 volunteers and 130 NGO partners.
About Max India
Limited
Max India is a multi-business corporate, driven by the spirit of enterprise and focused on people and service oriented businesses. The Rs 78,360 million Max India is led by its publically listed Max India Limited and it is headquartered in New Delhi, India. Max India is in the ‘Business of Life’ and its vision is to be one of India’s most admired corporates for Service Excellence. It ‘Protects Life’ through its Life Insurance subsidiary Max New York Life, a joint venture between Max India and New York Life, a Fortune 100 company; ‘Cares for Life’ through its Healthcare company, Max Healthcare, a subsidiary of Max India Limited; ‘Enhances Life’ through its Health Insurance company, Max Bupa Health Insurance, a joint venture between Max India and Bupa Finance Plc., UK; and ‘Improves Life’ through its Clinical Research business, Max Neeman, a fully owned subsidiary of Max India. From its past, Max India continues its interest in manufacture of Speciality Products for the packaging industry.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.68 |
|
|
1 |
Rs.72.56 |
|
Euro |
1 |
Rs.63.53 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment record
(10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.