MIRA
INFORM REPORT
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Report Date : |
11.01.2011 |
IDENTIFICATION DETAILS
|
Name : |
MERCK
LIMITED |
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Formerly Known As : |
E MERCK INDIA LIMITED |
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Registered Office : |
Shiv Sagar Estate 'A', |
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Country : |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
26.04.1967 |
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Com. Reg. No.: |
11-13726 |
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CIN No.: [Company
Identification No.] |
L99999MH1967PLC013726 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUME03379F |
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PAN No.: [Permanent
Account No.] |
AAACE2616F |
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Legal Form : |
A public limited liability
company. The company’s shares are listed on the Stock Exchange. |
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Line of Business : |
Manufacturing
and Marketing of Bulk Drugs, Reagents, Injections, Syrups/Powders and
Tablets/Capsules. |
RATING & COMMENTS
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MIRA’s Rating : |
Aa (72) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 18690000 |
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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. The company is a
subsidiary of 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
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Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION DENIED BY
|
Name : |
Mr. Vijay |
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Designation : |
Accounts Department |
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Date : |
10.01.2011 |
LOCATIONS
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Registered Office : |
Shiv Sagar Estate 'A', Dr. Annie Besant Road, Worli, Mumbai-400018,
Maharashtra, India |
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Tel. No.: |
91-22-24964855 / 24964856 / 56609000 |
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Fax No.: |
91-22-24950307/ 24950354 / 24954590 / 0354 / 0307 / 24936046 |
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E-Mail : |
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Website : |
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Factory 1 : |
Plot No. 11/1, Usgaon, Ponda-403407, |
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Factory 2 : |
Plot Nos. 1 and 1A, MIDC Estate, Taloja, Panvel, Dist. Raigad – 410208
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DIRECTORS
AS ON 31.12.2009
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Name : |
Mr.
S. N. Talwar |
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Designation : |
Chairman |
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Name : |
Dr.
H. S. Hermansson |
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Designation : |
Director
(up to 31.07.2009) |
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Name : |
Dr.
M. Dziki |
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Designation : |
Managing Director |
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Name : |
Mr.
H. C. H. Bhabha |
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Designation : |
Director |
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Name : |
Mr. E. A. Kshirsagar |
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Designation : |
Director |
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Name : |
Mr. K. Shivkumar |
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Designation : |
Executive Director |
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Name : |
Mr.
R. L. Shenoy |
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Designation : |
Director |
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Qualification : |
B. Tech |
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Previous Employment : |
Project Manager- Jainex Limited |
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Name : |
Mr. Ralph Zaat |
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Designation : |
Director (from
20.07.2009) |
KEY EXECUTIVES
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Name : |
Mr.
H. U. Shenoy |
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Designation : |
Company
Secretary |
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Name : |
Mr. Vijay |
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Designation : |
Accounts Department |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2010
|
Category of Shareholder |
Total No. of
Shares |
Percentage of
Holding |
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(A)
Shareholding of Promoter and Promoter Group |
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8,599,224 |
51.80 |
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8,599,224 |
51.80 |
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Total
shareholding of Promoter and Promoter Group (A) |
8,599,224 |
51.80 |
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(B)
Public Shareholding |
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|
348,530 |
2.10 |
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|
998 |
0.01 |
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2,001,728 |
12.06 |
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926,826 |
5.58 |
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3,278,082 |
19.75 |
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653,924 |
3.94 |
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3,208,378 |
19.33 |
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752,413 |
4.53 |
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107,361 |
0.65 |
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106,527 |
0.64 |
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834 |
0.01 |
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4,722,076 |
28.45 |
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Total
Public shareholding (B) |
8,000,158 |
48.20 |
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Total
(A)+(B) |
16,599,382 |
100.00 |
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(C) Shares
held by Custodians and against which Depository Receipts have been issued |
- |
- |
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Total
(A)+(B)+(C) |
16,599,382 |
100.00 |
(1)
Indian
Bodies
Corporate
Individual
shareholders holding nominal share capital up to Rs.0.100 million BUSINESS DETAILS
|
Line of Business : |
Manufacturing
and Marketing of Bulk Drugs, Reagents, Injections, Syrups/Powders and
Tablets/Capsules. |
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Products : |
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Imports : |
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Products : |
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Countries : |
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Terms : |
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Purchasing : |
L/C
terms |
PRODUCTION STATUS
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Particulars |
Unit |
Installed
Capacity @ |
Actual
Production |
|
Bulk
Drugs |
Tones |
482.0 |
495.7 |
|
Reagents
/ Chemicals |
Tones |
-- |
--* |
|
Injections
/ Nasal Drops |
Kilo-Ltre |
443.0 |
4351* |
|
Syrups
/ Powders / Ointments |
Tones |
-- |
1748.0* |
|
Tablets
/ Capsules |
No. millions |
400.0 |
1664.0* |
NOTE
@ As certified by the
Management, on which Auditors have placed reliance, being a technical matter.
* Includes
quantities manufactured by others on loan licences.
(a) Production
under “Bulk Drugs” includes items manufactured for captive consumption.
(b) Production includes
promotional samples.
(c) “Reagents” is
inclusive of repacked items.
(d) Opening and
Closing Stocks and Turnover of Vitamins under “Bulk Drugs” include Vitamin
derivatives.
(e) Under the
liberalised policy of the Government vide Notification No. S-O-477 (E) dated 25
July 1991 and as amended vide Press Release Note No. 4 of 1994 series dated 25
October 1994, Bulk Drugs and Formulations included in above are exempted from
licensing procedures under the Industries (Development and Regulation) Act, 1951.
(f) Installed
capacities are on an annual basis as at year end.
(g) Quantities of
closing stock of goods mentioned above are after adjustments of excess/shortage
upon physical stockcounts, free samples, giveaways under the Company’s bonus
schemes and write offs.
GENERAL INFORMATION
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No. of Employees : |
970
(approximately) |
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Bankers : |
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Facilities : |
-- |
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Banking
Relations : |
- |
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Auditors : |
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Name : |
BSR and Company Chartered
Accountants |
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Holding Company
: |
Through its subsidiaries listed below as Investing Associates holds
51.8% (2008: 51.0%) of the equity share capital, as at 31 December 2009. |
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Investing Associates : |
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Fellow Subsidiaries: |
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CAPITAL STRUCTURE
AS ON 31.12.2009
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
18,000,000 |
Equity Shares |
Rs.10/- Each |
Rs.180.000 millions |
Issued, Subscribed and Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
16,599,382 |
Equity Shares |
Rs.10/- Each |
Rs.166.000
millions |
NOTE
Out of the above
— 127,820 (2008:
127,820) Equity Shares of Rs. 10 each have been allotted as fully paid-up
pursuant to a contract for consideration
having been received otherwise than in cash.
— 5,370,000 (2008:
5,370,000) Equity Shares of Rs. 10 each have been allotted as fully paid-up
Bonus Shares, by capitalising Rs. 38.3 million from General Reserve and Rs.
15.4 million from Securities Premium Account.
— 8,599,224 (2008:
8,599,224) Equity Shares of Rs. 10 each are held by
— During the year
261,842 Equity Shares (2008: Nil shares) were bought back pursuant to the
Company’s Equity Share buy back scheme. All the shares bought back till 31
December 2009 have been extinguished.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2009 |
31.12.2008 |
31.12.2007 |
|
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SHAREHOLDERS FUNDS |
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1] Share Capital |
166.000 |
168.600 |
168.600 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves and Surplus |
4506.900 |
4345.300 |
4060.400 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
4672.900 |
4513.900 |
4229.000 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
21.200 |
23.800 |
48.000 |
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TOTAL |
4694.100 |
4537.700 |
4277.000 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
628.200 |
604.500 |
380.400 |
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Capital work-in-progress Including Capital Advances |
12.100 |
17.600 |
24.600 |
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INVESTMENT |
238.200 |
1529.300 |
2339.700 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS and ADVANCES |
|
|
|
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|
Inventories |
584.900 |
729.800 |
362.900
|
|
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Sundry Debtors |
438.100
|
444.400 |
311.200
|
|
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Cash and Bank Balances |
3246.400
|
1847.700 |
1169.100
|
|
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Other Current Assets |
0.000
|
0.000 |
0.000
|
|
|
Loans and Advances |
533.700
|
432.000 |
307.400
|
|
Total
Current Assets |
4803.100
|
3453.900 |
2150.600 |
|
|
Less : CURRENT
LIABILITIES and PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
351.600
|
401.600 |
|
|
|
Other Current Liabilities |
74.600
|
117.600 |
291.900
|
|
|
Provisions |
561.300
|
548.400 |
326.400
|
|
Total
Current Liabilities |
987.500
|
1067.600 |
618.300 |
|
|
Net Current Assets |
3815.600
|
2386.300 |
1532.300
|
|
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|
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|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
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|
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|
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TOTAL |
4694.100 |
4537.700 |
4277.000 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.12.2009 |
31.12.2008 |
31.12.2007 |
|
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SALES |
|
|
|
|
|
|
|
Income |
4731.100 |
3894.600 |
3148.300 |
|
|
|
Other Income |
432.100 |
477.100 |
395.000 |
|
|
|
TOTAL (A) |
5163.200 |
4371.700 |
3543.300 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material Cost |
2060.900 |
1599.900 |
1264.900 |
|
|
|
Personnel Expenses |
570.200 |
477.600 |
332.000 |
|
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|
Operating and Other Expenses |
1492.200 |
1319.400 |
881.800 |
|
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TOTAL (B) |
4123.300 |
3396.900 |
2478.700 |
|
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|
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|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1039.900 |
974.800 |
1064.600 |
|
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|
Less |
FINANCIAL
EXPENSES (D) |
0.300 |
0.100 |
0.100 |
|
|
|
|
|
|
|
|
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|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1039.600 |
974.700 |
1064.500 |
|
|
|
|
|
|
|
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|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
75.100 |
57.300 |
65.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
964.500 |
917.400 |
998.600 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
309.700 |
287.300 |
310.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
654.800 |
630.100 |
688.200 |
|
|
|
|
|
|
|
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|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1366.700 |
1423.500 |
1480.700 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
332.000 |
295.100 |
|
|
|
|
Dividend Tax |
56.400 |
50.100 |
NA |
|
|
|
Transfer to General Reserve |
326.600 |
341.700 |
|
|
|
BALANCE CARRIED TO
THE B/S |
1306.500 |
1366.700 |
1423.500 |
|
|
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|
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EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of Goods on F. O. B Basis |
522.200 |
296.300 |
|
|
|
|
Indenting commission |
1.100 |
3.800 |
|
|
|
|
Others (Recoveries of SAP expenses, freight, insurance, etc.) |
23.500 |
7.300 |
|
|
|
TOTAL EARNINGS |
546.800 |
307.400 |
205.800 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
438.000 |
471.500 |
|
|
|
|
Finished Goods |
279.200 |
182.400 |
|
|
|
|
Components, Stores and Spares Parts |
2.200 |
1.700 |
|
|
|
|
Capital Goods |
3.900 |
15.300 |
|
|
|
TOTAL IMPORTS |
723.300 |
670.900 |
416.000 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
39.0 |
37.4 |
-- |
|
QUARTERLY RESULTS
|
PARTICULARS |
31.03.2010 1st
Quarter |
30.06.2010 2nd
Quarter |
30.09.2010 (3rd
Quarter) |
|
Net Sales |
1040.270 |
1217.700 |
1573.110 |
|
Total Expenditure |
900.390 |
1026.690 |
1237.080 |
|
PBIDT (Excl OI) |
139.880 |
191.010 |
336.030 |
|
Other Income |
109.750 |
104.230 |
121.430 |
|
Operating Profit |
249.630 |
295.240 |
457.460 |
|
Interest |
0.040 |
0.040 |
0.030 |
|
Exceptional Items |
0.000 |
0.000 |
(100.000) |
|
PBDT |
249.590 |
295.200 |
357.430 |
|
Depreciation |
18.500 |
18.860 |
14.730 |
|
Profit Before Tax |
231.090 |
276.340 |
342.700 |
|
Tax |
77.540 |
91.790 |
95.060 |
|
Profit After Tax |
153.550 |
184.550 |
247.640 |
|
Net Profit |
153.550 |
184.550 |
247.640 |
KEY RATIOS
|
PARTICULARS |
|
31.12.2009 |
31.12.2008 |
31.12.2007 |
|
PAT / Total Income |
(%) |
12.68
|
14.41 |
19.42 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
20.39
|
23.56 |
31.72 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
17.76
|
22.60 |
42.48 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.21
|
0.20 |
0.24 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.21
|
0.24 |
0.15 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.86
|
3.24 |
3.48 |
LOCAL AGENCY
FURTHER INFORMATION
The Details of
Sundry Creditors:
Rs.
In Millions
|
Particulars |
31.12.2009 |
31.12.2008 |
31.12.2007 |
|
Sundry Creditors |
|
|
|
|
Dues to Micro,
Small and Medium Enterprises |
0.700 |
1.300 |
NA |
|
Others |
350.900 |
400.300 |
NA |
|
Total |
351.600 |
401.600 |
NA |
HISTORY
E Merck (
E-Merck (
E-Merck (
The company intends to stop dealing in Imaging Products (non ionic radiological
X-Ray Contrast Medium). Due to the cessation of this line of business, company
also terminate its understanding with Bracco S.P.A.,
In Dec. 2000, the company completed the acquisition of the Livogen brand from
Glaxo
E. Merck has entered into a co-marketing tie-up with the domestic pharma
company Kopran for a new anti-inflammatory drug Rofecoxib, in the country.
Rofecoxib is one of the fast-moving non-steroid anti-inflammatory drugs (NSAID)
and was launched a year ago in the international market. The company is
launching the new drug under the brand name of `Acrobat', while Kopran has
launched it under the brand name of `Ziflam'. Last year, Kopran and
The company plans to foray into niche segments like oncology and enzymes where
entry barriers are high. The company also plans to add new products to its
cardiovascular range. The two-year co-marketing pact with Zydus Cadila is
expected to provide
The name of the company has been changed during 2002, from E Merck India
Limited to Merck Limited.
During 2004, The Company sold its Taloja Plant to Biochem
Pharmaceuticals Industries Limited on signing the Deed of Assignment. During
2004, the Company's collaborator Merck KGaA divested its holding in VWR
International Limited, UK and This should not affect the company's business
operations with the same.The company decided to sale its Life Science and
Analytic business unit to the Merck Specialities Private Limited, a wholly owned
subsidiary of company's Parent Company Merck KGaA, Germany for a consideration
value of Rs.992 million in 2005.
In 2005, The company has increased its Installed capacity of Bulk Drugs 300 MT
to 318 MT per annum. The company has taken strategic initiatives in the last
few years have yielded very positive result from the point of view of the
operating profits. On the turnover front, they are yet to transform the ideas
and strategies into desired results. The recent regulatory changes with the
introduction of product patent, enforcement of the strict quality norms,
proposed National Pharmaceutical policy together with more focus and attention
to the company. The Government's initiative to bring the industry-friendly
pricing legislation should further improve the operations of the company.
OPERATIONS
The turnover of
the Company for the year 2009 was Rs. 4,731.100 millions as against Rs.
3,894.600 millions for the year 2008, showing a growth of 21.5% during the
year. The profit after tax for the year was Rs. 654.8 mio as against Rs.
630.100 millions In the previous year.
The turnover of
the Pharmaceuticals division grew from Rs. 3,189.600 millions in 2008 to
3,525.500 millions in 2009 showing a growth of 10.5%. The turnover of the Chemicals
division for the year was 1,205.600 millions as against Rs. 705.000 millions in
the previous year, registering an impressive growth of 71.0%.
During the year,
the Company’s exports increased to Rs. 579.800 millions as against Rs. 353.200
millions for the previous year registering an impressive growth of 64.2%.
BUY BACK OF SHARES
The Board at its
meeting held on May 20, 2009 approved the buy back of Company’s fully paid up
Equity Shares from the open market at a price not exceeding Rs. 435/- per
share. The buy back is limited to an amount of Rs. 451.4 mio being 10% of total
paid up capital and free reserves based on audited accounts for the year ended
December 31, 2008. The Company has bought back 2,61,842 Equity Shares and all
the shares bought back in the buy back offer have been extinguished as on date.
FINANCE
The investments of
the Company in various debt funds, and fixed deposits with Banks as on the date
of the Report amount to Rs. 3435.800
millions
DIRECTORS
Mr. S. N. Talwar
and Mr. E. A. Kshirsagar will retire by rotation at the ensuing Annual General
Meeting and being eligible, offer themselves for re-appointment. During the
year, Mr. Ralph Zaat was nominated on the Board by Merck KGaA pursuant to the
provisions of Article 110 of the Articles of Association of the Company in
place of Dr. H. S. Hermansson. The Board placed on record its appreciation of
the valuable services rendered by Dr. Hermansson during his tenure as a
Director of the Company.
Mr. R. L. Shenoy’s
tenure as a Whole-time Director expired on December 26, 2009. The Directors are
of the opinion that it would be advisable to re-appoint Mr. R. L. Shenoy as a
Whole-time Director for an additional period of two years with effect from
December 27, 2009 subject to Members approval at the ensuing Annual General
Meeting.
(A) CONSERVATION
OF ENERGY-GOA PLANT
(a) Energy
Conservation measures taken
1. Reciprocating
inefficient chillers are replaced with energy efficient
2. Utility
equipments operationally controlled as per the production plans.
3. Power factor
maintained at 0.99.
4. Power
consumption is taken as part of the Six Sigma Project and controlled
accordingly.
5. Central utility
chilled water pump used for
6. Inefficient
pumps replaced with energy efficient pumps.
7. Inefficient
lamps replaced with energy efficient CFL lamps.
8. Appropriate DGs
loading done in second and third shifts leading to efficient operations.
9. Condensate
water returned to boiler.
10 ETP water
recirculated for vacuum pumps in Oxynex ST Plant.
11. Steam
generation done to the maximum extent by briquette fired boiler.
12. Recirculated
RO-EDI water for secondary application.
13. Steam, water,
air, chilled water, cooling water leakages monitored and controlled.
(b) Additional
investments and proposals, if any, being implemented for reduction of
consumption of energy:
Installed two
screw chillers at a cost of Rs. 7.000 millions
(c) Impact of
Measures taken at (a) and (b) above:
1. Power
consumption is controlled effectively.
2. The energy conservation
measures have resulted in savings which are translated in the reduction of cost
of production.
(B) TECHNOLOGY
ABSORPTION
DISCLOSURE OF
PARTICULARS WITH RESPECT TO ABSORPTION OF TECHNOLOGY, RESEARCH AND DEVELOPMENT
(a) RESEARCH AND
DEVELOPMENT (R and D)
1. Specific Areas
in which Research has been carried out by the Company:
Pharmaceuticals
The
Pharmaceuticals R and D center at Nerul, Navi Mumbai is recognized by the
Department of Scientific and Industrial Research. The R and D activities are
carried out in various areas like pharmaceuticals, vitamin premixes, cosmetics
and packaging development. The R and D center is benefited on account of the
access it has, to the latest technologies developed by
Optimization, standardization
and improvement of products and production processes and yields are some of the
important achievements of the R and D center in the year 2009.
The center also is
taking continuous steps for meeting the on-going changes in the regulatory
requirements. By its continuous efforts on the import substitution, new product
development, the center enables the Company to market more profitable products
with better patient compliance.
2. Benefits
derived as a result of R and D:
The R and D center
has assisted the Company in the launch of new products in different therapeutic
segments. The center has also been responsible for the improvement in the
production processes, improved yields and operational efficiencies. Because of
the initiatives of the Center, during the year, the Company launched 25 new
products, some of which are line extensions of the existing products. Some of
the new products and their therapeutic segments are given below:
3. Future Plan of
Action:
Continuous efforts
will be made to augment the R and D capabilities through modern scientific and
technological techniques and improved infrastructure. Emphasis will be put on
the global net working on R and D and also training and development. Efforts
will be made to develop innovative commercially viable processes, know how for
various dosage forms and also for improving shelf life, stability, quality,
convenience and meeting regulatory compliances. The center will be also taking
steps to develop anti counterfeit measures for Company's products.
b) TECHNOLOGY
ABSORPTION, ADAPTATION AND INNOVATION
1. Efforts in
brief, made towards technology absorption adaptation and Innovation:
The R and D center
carries out developmental activities in various areas such as import substitution
for raw materials, batch cycle time reduction and also line extensions of some
of the existing products. The center also hires the external consultants for
the purpose of augmenting the capabilities for the execution of important
products. Under the continuous guidance of Merck KGaA, the center makes
endeavours to update the quality systems and current good manufacturing
practices.
2. Benefits
derived as a result of above efforts:
The R and D center
has assisted the Company in the launch of new products in different therapeutic
segments. The center has also been responsible for the improvement in the
production processes, improved yields and operational efficiencies. Because of
the initiatives of the Center, during the year, the Company launched 25 new
products, some of which are line extensions of the existing products. Some of
the new products and their therapeutic segments are given below:
3. In case of
imported technology (imported during the last five financial years):
Information regarding:
(i) Technology
imported
(ii) Year of
import
(iii) Has
Technology been fully absorbed
(iv) If not fully
absorbed, areas where this has not taken place, reasons therefore and future
plans of action.
The Company has
not imported any technology in the last five years.
However, the
Company has been receiving technical know-how from the collaborators,
(C) FOREIGN
EXCHANGE EARNINGS AND OUTGO
During the year,
foreign exchange outgo was Rs. 1,062.200 millions (which includes import of raw
materials to the extent of Rs. 438.000 millions) while the foreign exchange
earned was Rs. 546.800 millions, the details of which have been stated under
item Nos. iii to vi of Schedule 26 annexed to the financial statements.
The Company's
export turnover, both of bulk drugs and formulations has significantly
increased on account of the assistance rendered by Merck KGaA. New export
markets were added during the year 2009. Both the Pharmaceuticals and Chemicals
divisions will make efforts to exploit the potentials that exist in the neighbouring
and other regions of the world to expand the Company's presence in those
geographies.
CONTINGENT
LIABILITIES
Summary of
disputed statutory demands not accepted by the Company are given below:
|
Particulars |
2009 (Rs. In millions) |
|
Income tax |
345.000 |
|
State and
Central Sales Tax |
11.700 |
|
Excise duty # |
108.600 |
|
Service tax |
5.400 |
|
Custom Duty |
1.300 |
|
Total |
472.000 |
NOTE
# includes Rs. 89.900
million (2008: Rs. 89.900 million) in respect of a guarantee given to a toll
center, towards an excise duty demand.
UNAUDITED FINANCIAL RESULTS FOR THE NINE MONTHS ENDED 30.09.2010
Rs. In Millions
|
Particulars |
Quarter ended 30.09.2010 |
Nine Months ended 30.09.2010 |
|
a) Net Sales |
1559.392 |
3807.505 |
|
b) Other Operating Income |
13.717 |
|
|
Total |
1573.109 |
3843.049 |
|
Expenditure |
|
|
|
(a) (Increase)/decrease in Stock in Trade and work in progress |
128.683 |
23.144 |
|
(b) Consumption of Raw and packing materials |
349.623 |
1006.714 |
|
(c) Purchase of traded goods |
163.824 |
517.840 |
|
(d) Employees Cost |
187.618 |
522.261 |
|
(e) Depreciation |
14.726 |
52.083 |
|
(f) Other Expenditure |
407.327 |
1094.209 |
|
Total Expenditure |
1251.801 |
3216.251 |
|
Profit From Operations before other Income Interest & Exceptional Items |
321.308 |
626.798 |
|
Other Income |
121.431 |
323.455 |
|
Profit before Interest and Exceptional items |
442.739 |
950.253 |
|
Interest |
0.034 |
0.111 |
|
Profit after interest before Exceptional items |
442.704 |
950.142 |
|
Exceptional Items |
(100.000) |
(100.000) |
|
Profit From Ordinary
activities before Tax |
342.704 |
850.142 |
|
Tax Expense |
95.062 |
264.400 |
|
Net Profit From Ordinary activities after Tax |
247.642 |
585.742 |
|
Extraordinary Items |
- |
- |
|
Net Profit for the period |
247.642 |
585.742 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
165.994 |
165.994 |
|
Reserves (Excluding Revaluation Reserves) |
- |
- |
|
Earning Per Share (EPS) |
|
|
|
-Basic and Diluted EPS before extraordinary items (qtr/nine months, not annulised) |
14.92 |
35.29 |
|
-Basic and Diluted EPS after extraordinary items (qtr/nine months, not annulised) |
14.92 |
35.29 |
|
Public Share Holding |
|
|
|
- Number of Shares |
8000158 |
8000158 |
|
- Percentage of shareholding |
48.2 |
48.2 |
|
Promoters and Promoter group share holding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
- |
- |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
- |
- |
|
- Percentage of shares(as a % of the total share capital of the company) |
- |
- |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
8599224 |
8599224 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
100 |
100 |
|
- Percentage of Share (as a % of the total share capital of the company) |
51.8 |
51.8 |
|
*Tax expense consists of: |
|
|
|
Current tax Deferred tax Fringe Benefit tax |
129.000 (33.938) - |
307.000 (42.600) - |
Notes:
1. The above results have been reviewed by the Audit Committee and thereafter approved by the Board of Directors at its meeting held on 20.10.2010. The above results were subjected to a "Limited Review" by the Statutory Auditors.
2. Figures for the previous period/year have been re-grouped/re-arranged wherever necessary.
3. During the current quarter, the Company has recognised provision for impairment loss of Rs.100.000 millions on the Oxynex plant assets. This has been considered in the results of the Chemicals segment.
4. The Board of Directors at its meeting held on 20.10.2010 recommended an Interim dividend of Rs.95/- per share.
5. Status of shareholder complaints for the quarter ended
30.09.2010: For MERCK LIMITED
Pending at the beginning of the quarter - NIL
Received during the quarter- NIL
Pending at the end of the quarter - NIL
Segment Wise Revenue, Result and Capital Employee
Rs. In Millions
|
Particulars |
Quarter ended 30.09.2010 |
Nine Months ended 30.09.2010 |
|
1. Segment Revenue |
|
|
|
a) Pharmaceuticals |
1155.049 |
2681.801 |
|
b) Chemicals |
460.486 |
1279.792 |
|
Total |
1615.535 |
3961.593 |
|
Less : Inter segment revenue |
42.426 |
118.544 |
|
Net Sales and Other Operating Income |
1573.109 |
3843.049 |
|
2. Segment Results (Profit before Tax and Interest from each segment) |
|
|
|
a) Pharmaceuticals |
238.360 |
430.742 |
|
b) Chemicals |
44.757 |
251.486 |
|
Total |
283.117 |
682.228 |
|
Less : |
|
|
|
i) Interest |
0.034 |
0.111 |
|
ii) Other un-allocable expenditure net off un-allocable Income |
(59.621) |
(168.025) |
|
Total Profit before Tax |
342.704 |
850.142 |
|
3. Capital Employed |
|
|
|
a) Pharmaceuticals |
518.619 |
518.619 |
|
b) Chemicals |
794.537 |
794.537 |
|
c) Unallocated |
3945.327 |
3945.327 |
|
Total |
5258.483 |
5258.483 |
FIXED ASSETS
- Software
- Building and Flats
- Plant and Machinery
- Furniture and Fixture
- Office Equipment
- Electrical Fitting
- Vehicles
PRESS RELEASE
16.09.2010
“THE
“The image brochure is complemented audio-visually by a new image film entitled “Live a Better Life“, which focuses on the uniqueness of human beings,” said Huber. Directed by the internationally renowned cinematographer Laszlo Kadar with background music provided by the Merck Philharmonic Orchestra, the four-minute film uses metaphoric images and symbolic scenes to portray what makes human beings unique and how Merck helps people to live a better life.
Merck is a global pharmaceutical and chemical company with
total revenues of EUR 7.7 billion in 2009, a history that began in 1668, and a
future shaped by approximately 40,000 (including Merck Millipore) employees in
64 countries. Its success is characterized by innovations from entrepreneurial
employees. Merck's operating activities come under the umbrella of Merck KGaA,
in which the Merck family holds an approximately 70% interest and free
shareholders own the remaining approximately 30%. In 1917 the
AS PER WEB DETAILS
PROFILE
Merck
Limited (formerly E. Merck Limited) was set up in
THEIR ACTIVE INGREDIENT IS INNOVATION
At
Merck Serono, they are actively committed to bringing therapeutic innovations
to patients. They specialize in the treatment of cancer, neurodegenerative
diseases, infertility, endocrine and metabolic disorders, cardiovascular
diseases and other conditions with unmet medical needs.
Around
the world, over 17,000 employees work to discover, develop, manufacture and
commercialize Merck Serono’s prescription therapies, available in over 150
countries.
They
are internationally recognized as a biotechnology leader, with innovative and
successful products along with a well-stocked and promising development
pipeline. Specialized know-how in research and production means that they are
able to ensure absolutely high-quality manufacturing, a key success factor
especially in the biopharmaceutical industry.
In
2007, sales of Merck Serono products generated total revenues of € 4.5 billion.
They devote 20% of these earnings to the pursuit of innovative new therapies
through their own research and development, strategic alliances and agreements.
CMT REPORT (Corruption, Money Laundering and 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.45.44 |
|
|
1 |
Rs.70.61 |
|
Euro |
1 |
Rs.58.63 |
SCORE and RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
72 |
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.