MIRA INFORM REPORT

 

 

Report Date :

18.06.2011

 

IDENTIFICATION DETAILS

 

Name :

MARICO LIMITED

 

 

Registered Office :

Rang Sharda Kishanchand Marg, Bandra Reclamation, Bandra (W), Mumbai – 400050, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

13.10.1988

 

 

Com. Reg. No.:

049208

 

 

Capital Investment / Paid-up Capital :

Rs.609.326 Millions

 

 

CIN No.:

[Company Identification No.]

L15140MH1988PLC049208

 

 

Legal Form :

A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.

 

 

Line of Business :

Manufacturer of consumer daily products.

 

 

No. of Employees :

981 (Approximately), Group (2592)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (67)

 

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 22866000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and reputed company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered good for normal business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

INFORMATION PARTED BY

 

Name :

Mr. Dheeraj

Designation :

Accounts Department

Date :

17.06.2011

 

 

LOCATIONS

 

Registered Office :

Rang Sharda Kishanchand Marg, Bandra Reclamation, Bandra (W), Mumbai – 400050, Maharasahtra, India

Tel. No.:

91-22-66480480

Fax No.:

91-22-66490112

E-Mail :

accounts@maricoindia.net

milinvrel@maricoindia.net

Website :

http://maricoindia.net

www.marico.com

www.kayaclinic.com

www.parachuteadvanced.com

www.saffolalife.com

www.haircodeworld.com

www.maricobd.com

www.maricoinnovationfoundation.org

Location :

Owned

 

 

Regional Offices :

Located At:

South Ro:

210-B, Swapanlok Complex, Sarojini Devi Road, Secunderabad – 500003, Andhra Pradesh, India

Tel No.: 91-40-27813351/ 55260067

 

West RO :

C-10, Dalia Industrial Estate, Modi House, Off. New Link Road, Near Fun Republic Cinema, Andheri (W), Mumbai – 400058, Maharasahtra, India

Tel No.: 91-22-26732439-40/ 26732472

 

East Ro :

Krishna Building, 4th Floor, Room No. 416, 224, A.J.C. Bose Road, Kolkata - 700017, West Bengal, India

Tel No.: 91-33-22470750/ 22477629

 

North RO :

 

No.5, DDA Local Shopping Center, 3rd Floor, Okhla Commercial Complex, Phase II, New Delhi – 110020, India

Tel No.: 91-11-26383370/ 8167/ 8168

 

 

DIRECTORS

As on 28.07.2010

 

Name :

Mr. Harsh Mariwala

Designation :

Chairman and Managing Director

 

 

Name :

Mr. Nikhil Khattau

Designation :

Chairman and Managing Director

 

 

Name :

Mr. Rajeev Bakshi

Designation :

Director

 

 

Name :

Mr. Atul Choksey

Designation :

Director

 

 

Name :

Mr. Anand Kripalu

Designation :

Director

 

 

Name :

Mr. Rajen Mariwala

Designation :

Director

 

 

Name :

Ms. Hema Ravichandran

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Ms. Rachana Lodaya

Designation :

Company Secretary

 

 

 

Management Team :

Name :

Mr. Harsh Mariwal

Designation :

Chairman and Managing Director

 

 

Name :

Mr. Saugata Gupta

Designation :

Chief Executive Officer - Consumer Product Business

 

 

Name :

Mr. Ajay Pahwa

Designation :

Chief Executive Officer – Kaya

 

 

Name :

Mr. Milind Sarwate

Designation :

Chief – Finance/ HR and Strategy

 

 

Name :

Mr. Vijay Subramanian

Designation :

Chief Executive Officer – International Business

 

 

 

Audit Committee :

Name :

Mr. Nikhil Khattu

Designation :

Chairman

 

 

Name :

Mr. Rajen Mariwala

Designation :

Member

 

 

Name :

Ms. Hema Ravichandar

Designation :

Member

 

 

Name :

Ms. Rachana Lodaya

Designation :

Secretary to the Committee

 

 

Name :

Mr. Harsh Mariwala

Designation :

Permanent Invitee

 

 

 

Corporate Goverance Committee :

Name :

Ms. Hema Ravichandar

Designation :

Chairman

 

 

Name :

Mr. Rajeev Bakshi

Designation :

Member

 

 

Name :

Mr. Anand Kripalu

Designation :

Member

 

 

Name :

Mr. Milind Sarwate

Designation :

Secretary to the Committee

 

 

Name :

Mr. Harsh Mariwala

Designation :

Permanent Invitee

 

 

 

Shareholders Committee :

Name :

Mr. Nikhil Khattau

Designation :

Chairman

 

 

Name :

Mr. Rajen Mariwala

Designation :

Member

 

 

Name :

Ms. Rachana Lodaya

Designation :

Secretary to the Committee

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2011

 

Names of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

84,050,520

13.68

Bodies Corporate

8,822,000

1.44

Any Others (Specify)

293,504,000

47.77

Trusts

293,504,000

47.77

Sub Total

386,376,520

62.89

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

386,376,520

62.89

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

19,274,048

3.14

Financial Institutions / Banks

52,000

0.01

Insurance Companies

7,743,670

1.26

Foreign Institutional Investors

159,191,646

25.91

Any Others (Specify)

3,000

-

Foreign Bank

3,000

-

Sub Total

186,264,364

30.32

(2) Non-Institutions

 

 

Bodies Corporate

14,848,333

2.42

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs. 0.100 Millions

20,413,086

3.32

Individual shareholders holding nominal share capital in excess of Rs. 0.100 Millions

3,748,329

0.61

Any Others (Specify)

2,748,918

0.45

Clearing Members

150,744

0.02

Non Resident Indians

1,947,169

0.32

Trusts

80,399

0.01

ESOP/ESOS/ESPS

570,606

0.09

Sub Total

41,758,666

6.80

Total Public shareholding (B)

228,023,030

37.11

Total (A)+(B)

614,399,550

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

-

-

(1) Promoter and Promoter Group

-

-

(2) Public

-

-

Sub Total

-

-

Total (A)+(B)+(C)

614,399,550

-

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of consumer daily products.

 

 

Products :

Product Description

Item Code No. (I.T.C. Code)

Coconut Oil

15131100

Sunflower Oil

15121910

Safflower Oil

15121930

 

 

Terms :

 

Purchasing :

Depend

 

GENERAL INFORMATION

 

Customers :

End Users and Others (Dealer and Distributor)

 

 

No. of Employees :

981 (Approximately), Group (2592)

 

 

Bankers :
  • Axis Bank Limited
  • Barclays Bank PLC
  • Citibank N.A
  • HDFC Bank Limited
  • ICICI Bank Limited
  • Kotak Mahindra Bank Limited
  • Standard Chartered Bank
  • State Bank of India
  • HSBC Limited

 

 

Facilities :

Secured Loan

As on

31.03.2010

(Rs. in

Millions)

As on

31.03.2009

(Rs. in

Millions)

Secured Redeemable Non–convertible Debentures

Secured against first pari passu charge over land and building situated

at Andheri (East), Mumbai)

300.000

0.000

External commercial borrowings

(Secured by hypothecation of Plant and Machinery)

(Amount repayable within one year Rs 224.600 Millions (Rs 63.400 Millions))

617.600

761.000

Working capital finance

(Secured by hypothecation of stocks in trade and debtors)

78.500

51.200

Total

996.100

812.200

Unsecured Loan

As on

31.03.2010

(Rs. in

Millions)

As on

31.03.2009

(Rs. in

Millions)

From banks :

 

 

Short term

2432.200

1230.600

Other term loans

0.000

500.000

Inter corporate deposits (Short term)

0.000

50.000

Commercial Papers (Redeemable within a year)

 

 

Face Value

350.000

500.000

Less : Deferred Interest

9.100

14.500

 

340.900

485.500

 

 

 

Total

2773.100

2266.100

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Price Waterhouse

Chartered Accountant

 

 

Internal Auditors :

Aneja Associates

Chartered Accountant

 

 

Subsidiaries :

Marico Bangladesh Limited

 

 

CAPITAL STRUCTURE

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

650000000

Equity Shares

Rs.1/- each

Rs. 650.000

Millions

150000000

Preference share

Rs.10/- each

Rs. 1500.000

Millions

 

Total

 

Rs. 2150.000

Millions

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

609325700

Equity Shares

Rs.1/- each

Rs.609.326

Millions

 

The above includes:

 

  • 290,000,000 equity shares issued as fully paid bonus shares by capitalisation of Capital Redemption Reserve.

265,000,000 equity shares issued as fully paid bonus shares by capitalisation of General Reserve

 

 

 

As on 28.07.2010

 

 

Authorised Capital : Rs. 2150.000 Millions

 

 

Issued, Subscribed & Paid-up Capital : Rs.614.561 Millions

 

 

 

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

609.300

609.000

609.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

5107.300

3068.500

2193.300

4] (Accumulated Losses)

0.000

0.000

0.0000

NETWORTH

5716.600

3677.500

2802.300

LOAN FUNDS

 

 

 

1] Secured Loans

996.100

812.200

1212.300

2] Unsecured Loans

2773.100

2266.100

1843.600

TOTAL BORROWING

3769.200

3078.300

3055.900

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

9485.800

6755.800

5858.200

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

1299.700

1159.100

969.900

Capital work-in-progress

1099.500

456.000

490.900

Assets held for disposal

0.100

0.100

0.100

 

 

 

 

INVESTMENT

2091.100

1125.800

1065.200

DEFERREX TAX ASSETS

585.000

634.100

955.300

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
3699.000

2736.900

2185.900

 

Sundry Debtors
945.100

610.500

416.800

 

Cash & Bank Balances
112.100

229.800

304.200

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
2541.700

2062.300

1937.700

Total Current Assets
7297.900

5639.500

4844.600

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
2106.600

1786.300

1866.800

 

Other Current Liabilities
158.500

163.800

174.700

 

Provisions
622.400

308.700

426.300

Total Current Liabilities
2887.500

2258.800

2467.800

Net Current Assets
4410.400

3380.700

2376.800

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

9485.800

6755.800

5858.200

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

20242.900

19171.700

15647.400

 

 

Income from Services

0.000

2.900

40.500

 

 

Other Income

220.600

145.300

145.300

 

 

TOTAL                                     (A)

20463.500

19319.900

15833.200

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials

10851.000

11570.300

8928.900

 

 

Manufacturing and Other Expenses

6251.700

5101.400

4797.200

 

 

TOTAL                                     (B)

17102.700

16671.700

13726.100

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

3360.800

2648.200

2107.100

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

183.000

289.200

197.500

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

3177.800

2359.000

1909.600

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

252.100

170.300

189.300

 

 

 

 

 

Add

EXCEPTIONAL ITEMS

0.000

(478.600)

12.400

 

 

 

 

 

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

2925.700

1710.100

1732.700

 

 

 

 

 

Less

TAX                                                                  (I)

575.500

289.100

298.600

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

2350.200

1421.000

1434.100

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

2331.000

1518.800

694.800

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

235.000

142.100

143.400

 

 

Debenture Redemption Reserve

150.000

0.000

0.000

 

 

Interim Dividend

402.100

398.900

398.900

 

 

Tax on Interim Dividend

68.300

67.800

67.800

 

BALANCE CARRIED TO THE B/S

3825.800

2331.000

1518.800

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

F.O.B. Value

1306.400

1251.400

712.300

 

 

Royalty

65.600

43.900

72.000

 

 

Dividend

46.900

20.600

14.900

 

 

Interest

44.100

22.100

15.200

 

TOTAL EARNINGS

1463.000

1338.000

814.400

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

844.500

871.600

4.100

 

 

Packing Material

64.200

112.800

97.300

 

 

Capital Goods

5.000

24.800

17.100

 

 

Finished Goods for Resale

32.000

14.500

10.400

 

TOTAL IMPORTS

945.700

1023.700

128.900

 

 

 

 

 

 

Earnings Per Share (Rs.) (Basic)

3.86

2.33

2.35

 

Earnings Per Share (Rs.) (Diluted)

3.84

2.33

2.35

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2010

30.09.2010

31.12.2010

31.03.2011

 

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Net Sales

5877.350

5400.610

6105.380

6210.66

Total Expenditure

5017.360

4731.100

5422.840

5249.690

PBIDT (Excl OI)

859.990

669.510

682.540

960.970

Other Income

28.310

67.610

67.610

63.750

Operating Profit

888.300

737.120

750.150

1024.720

Interest

46.960

49.230

46.640

156.390

Exceptional Items

0.000

0.000

0.000

920.740

PBDT

841.340

687.890

703.510

1789.070

Depreciation

51.840

67.930

74.370

82.160

Profit Before Tax

789.510

619.960

629.150

1706.910

Tax

113.790

23.340

66.230

388.850

Provisions and contingencies

0.000

0.000

0.000

0.000

Profit After Tax

675.720

596.620

562.920

1318.06

Extraordinary Items

0.000

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

0.000

Net Profit

675.720

596.620

562.920

1318.060

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
11.48

7.35

9.06

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
14.45

8.92

11.07

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
34.03

25.15

29.80

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.51

0.46

0.62

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
1.16

1.45

1.97

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.53

2.50

1.96

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sundry Creditors:

                                                                                                                                                          (Rs. in Millions)

Particulars

31.03.2010

31.03.2009

31.03.2008

 

 

 

 

Due to Micro and Small Enterprises

2090.800

1772.800

0.000

Others

15.800

13.500

1866.800

Total

2106.600

1786.300

1866.800

 

 

 

REVIEW OF OPERATIONS

 

Marico achieved a strong growth of 11% in revenue over the previous year and registered a topline of Rs 26610.000 Millions during FY10. Almost the entire growth was organic growth, with volume led growth of 14% while the remaining came from price increases and sales mix. All its businesses, those of consumer products in India, international business and Kaya skin solutions contributed to the overall growth of the group.

 

The top line increase was accompanied by a bottom-line growth of 23%, after considering the impact of extra-ordinary / exceptional items. Profit After Tax (PAT) including exceptional / extra-ordinary items during the year was at Rs 2320.000 Millions as against Rs. 1890.000 Millions in FY09. The financials for FY10 include certain exceptional items of Rs 97.900 Millions (Rs 40.500 Millions on account of foreign currency translation reserves consequent to sale of membership interest in Sundari LLC and Rs 57.300 Millions on account of closure of Kaya Life clinics in India and Gulf) while the financials of FY 09 include certain exceptional items (loss on sale of membership interest in Sundari LLC). Had it not been for these items, the PAT for FY10 would have been Rs 2420.000 Millions, a growth of 30% over FY09 (exceptional items excluded from the comparable figure in the previous year).

 

During the year, Marico extended its record of year on year quarterly growth.

 

Q4FY10 was on a Y-o-Y basis:

 

• The 38th consecutive Quarter of growth in Turnover and

• The 42nd consecutive Quarter of growth in Profits

 

The company has demonstrated steady growth on both the top line and bottom line. Over the last 5 years, they have grown at a Compounded Annual Growth Rate of 21% and 27% respectively.

 

Consumer Products Business: India

Parachute, Marico’s flagship brand, continued to expand its franchise during the year. Parachute coconut oil in rigid packs, the focus part of its portfolio, grew by over 10% in volume as compared to FY09. Similarly Nihar in rigid packs grew at about 9% in volume terms. Marico offers its consumers a basket of value added hair oils for their pre-wash and post wash hair conditioning, nourishment and grooming needs (key brands being Parachute Advansed coconut hair oil, Parachute Jasmine non sticky coconut hair oil, Nihar Naturals perfumed coconut hair oil, Hair & Care nourishing non sticky hair oil, Hair & Care Almond Gold and Shanti Badam Amla hair oil). During the year, all the aforesaid hair oils brands recorded healthy growth and the portfolio as a whole grew by about 16% in valume over FY09.

 

Further, Marico has been constantly investing in a healthy pipeline of new products. The company launched new prototypes. These included Saffola Arise – lower Glycemic Index (GI) rice, Parachute Advansed Ayurvedic Hot Oil, Parachute Advansed Ayurvedic Cooling Oil and Nihar Cooling Oil.

 

International FMCG Business

 

From a single digit share in FY05, about 23% of the group’s turnover is now contributed by Marico’s International FMCG business. Its key geographical presence is in Bangladesh, MENA (Middle East and North Africa) and South Africa.

 

In January 2010, Marico established an entry into the South East Asian region through the acquisition of the hair styling brand Code 10 in Malaysia.

 

During FY10, the Group’s international business crossed the Rs 6000.000 Millions mark in turnover, a growth of 36% over FY09. Much of this growth was derived from consumer franchise expansion – about 21%, accompanied by price led growth of 9%. An additional 6% growth was on account of favourable foreign exchange rates.

 

Kaya

 

Kaya is the first organized player in the segment of cosmetic dermatology and now enjoys a large first mover advantage in the segment in India. During FY10, Kaya opened its first clinic in Dhaka, Bangladesh. It now offers its technology led cosmetic dermatological services through 101 clinics: 87 in India across 27 cities and 13 in the Middle East in addition to the most recent one in Dhaka. Kaya also introduced many new products during the year.

 

Kaya’s offering are in the nature of discretionary spends. Apart from the impact of the overall economic downturn, the Kaya skin business in India faced two adverse developments during the first half of FY10. The outbreak of swine flu, though temporary, led to a drop in customer appointments particularly in cities such as Pune and Bangalore where the incidence of the outbreak was more acute. The introduction of service tax in the Union Budget in an already unfavorable ambience made growth more challenging. While there was some improvement in the macro environment in the latter part of the year, Kaya continued to experience a decline in same clinic revenue (revenue from clinics that have been in existence for over a year) in India. In addition to the above, opening of 31 new clinics in last two years which in normal course would have required 3-4 years to achieve profitability as well as provision of a significant one time costs resulting from strategic decisions to close down  aya Life centers (details whereof are given below) and 7 Kaya Skin Clinics by June 30, 2010 resulted in net worth of Kaya Limited turning negative as on March 31, 2010.

 

 

Kaya had launched the Kaya Life prototype to offer customers holistic weight Management solutions and had opened 5 ‘Kaya Life’ centres in Mumbai and 1 centre in the Middle East during the past 3 years. While clients had been experiencing effective results on both weight loss and inch loss, the prototype had less than expected progress in building a sustainable business model. Hence, the Management took a strategic decision of closing down the centres in March, 2010. Consequently, the Group has made an aggregate provision of Rs. 57.400 Millions for the year ended March 31, 2010 towards impairment of assets and other related estimated liabilities.

 

 

Kaya is a fairly young business - only 7 years since its inception. The business has been able to ramp up its presence to 87 clinics in India across 27 cities and 13 clinics in the Middle East and a large customer base with significant long term growth potential. They have already experienced, in a few accounting periods, profitability at both clinic level and regional level. They therefore believe that the losses during FY10 are not reflective of future trends and the Kaya business model continues to be robust and offers significant long term growth opportunities. Further, the operations of Kaya are expected to improve significantly due to positive changes in economic environment, maturity of new clinics, renewed focus on reducing the time to scale up revenues in new clinics, improve capacity utilizations in existing ones and add to Kaya’s range of service and product offerings and anticipated savings resulting from restructuring of operations.

 

 

OTHER CORPORATE DEVELOPMENTS

 

IPO - Marico Bangladesh Limited

 

Marico Bangladesh Limited (MBL), a wholly owned Subsidiary of Marico Limited, received approval of the Bangladesh Securities and Exchange Commission (SEC) for its proposal to make an Initial Public Offer (IPO) in Bangladesh. Accordingly, MBL issued a total of 3,150,000 ordinary shares (about 10% of MBL’s expanded equity) of the face value of Taka 10 each at a price of Taka 90 per share. MBL’s shares are listed on the Dhaka Stock Exchange and the Chittagong Stock Exchange. The proceeds of the IPO, aggregating to Taka 283.5 million are being utilized to strengthen MBL’s financials to enable continued growth.

 

Acquisition of Brand ‘Code 10’

 

Marico entered the Malaysian hair styling market through the acquisition of the brand Code 10 and related IPR from Colgate-Palmolive Company through Marico Malaysia Sdn Bhd, a wholly owned subsidiary of Marico Middle East FZE. The Code 10 range comprises hair creams and hair gels. Marico estimates the Malaysian hair styling market to be about RM 150 million in size. Code 10 is the number 3 player and enjoys a double digit market share.

 

Divestment of Sundari LLC

The Company concluded divestment of its stake in Sundari LLC (Sundari) on June 8, 2009 upon completion of necessary compliances under FEMA regulations. Sundari ceased to be subsidiary of the Company from the said date. Accordingly, the financial statements of Sundari have been consolidated with that of Marico Limted for the period from April 1, 2009 to June 8, 2009. The net effect of the divestment of Rs. 40.500 Millions is charged to the Profit and Loss account and reflected as an Exceptional Item.

 

 

Contingent Liabilities not provided for in respect of:

 

i)                     Disputed tax demands/ Claims:

 

 

Particulars

31.03.2010

31.03.2009

 

 

 

Sales tax

60.800

48.800

Customs duty

4.000

28.600

Agricultural Produce Marketing Committee cess

79.300

78.100

Employees State Insurance Corporation

1.300

1.800

Excise duty on Subcontractors

2.400

0.000

Total

147.800

157.300

 

  • Excise duty on CNO dispatches Rs. 1315.700 Millions
  • Claims against the Company not acknowledged as debts. Rs. 2.200 Millions (Rs. 2.100 Millions)

 

b) (i) Counter guarantees given to banks on behalf of subsidiaries Rs. 414.000 Millions (Rs. 460.500 Millions)

    (ii) Stand by Letter of Credit given to banks on behalf of subsidiaries Rs. 764.500 Millions (Rs. 801.500 Millions)

 

c) Amount outstanding towards Letters of Credit Rs. 28.100 Millions (Rs. 180.700 Millions)

 

 

Fixed Assets:

 

  • Freehold land
  • Leasehold land
  • Buildings
  • Plant and machinery
  • Furniture and fittings
  • Vehicles

 

Intangible Assets:

 

  • Trademarks and
  • Copyrights
  • Computer software

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

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

 

3]         Asset Declaration :

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

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

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

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

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

 

8]         Affiliation with Government :

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

 

9]         Compensation Package :

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

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

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

 

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

 

 

CONTRAVENTION

 

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

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.93

UK Pound

1

Rs.72.43

Euro

1

Rs.63.62

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

7

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

7

--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

 

67

 

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

-

 

 

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

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