MIRA
INFORM REPORT
|
Report Date : |
07.05.2011 |
IDENTIFICATION DETAILS
|
Name : |
EMAMI LIMITED
(w.e.f. 01.09.1998) |
|
|
|
|
Formerly Known
As : |
HIMANI LIMITED |
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|
Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
11.03.1983 |
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Com. Reg. No.: |
21-36030 |
|
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Capital Investment
/ Paid-up Capital : |
Rs.151.312 Millions |
|
|
|
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CIN No.: [Company Identification
No.] |
L63993WB1983PLC036030 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CALE01693G/
CALE01097F |
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|
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PAN No.: [Permanent Account No.] |
AAACH7412G |
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|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares
are Listed in the Stock Exchanges. |
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|
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|
Line of Business : |
Manufacturing and Marketing of personal and healthcare
products. |
|
|
|
|
No. of Employees : |
1000 (Approximately) |
RATING
& COMMENTS
|
MIRA’s Rating : |
A (70) |
|
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 24800000 |
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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. Financial position of the company
is good. Trade relations are reported as fair. 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. It can be regarded as a promising business 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 – June 30, 2010
|
Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
|
|
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 : |
Emami Tower, 687, Anandapur, Kasba Golpark, EM Bypass,
Kolkata 700107, West Bengal, India |
|
Tel No.: |
91-33-66136264 |
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Fax No.: |
91-33-66136600 |
|
Email : |
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|
Website : |
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Head Office : |
Stephen House, 6-A, |
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Tel. No.: |
91-33-22487651/54/22486035/29/22482679 |
|
Fax No.: |
91-33-22481568/22100879 |
|
E-Mail : |
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|
Website : |
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|
|
Corporate
Office : |
18, |
|
Tel. No.: |
91-33-248-2679/2748/4416/9602/5190/7281/7284/6064 |
|
Fax No.: |
91-33-2482773/2106 |
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E-Mail : |
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Factory 1: |
Kolkata Plant 13 B T Road
Kolkata - 700 056, West |
|
Tel No.: |
91-2564-4047/8621/1509 |
|
Fax No.: |
91-2564-25648754 |
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Factory 2: |
Guwahati Plant EPIP Complex, Amingaon, |
|
Tel No.: |
91-361-2682847, 2682852, 2682853, 2682901 |
|
Fax No.: |
91-361 -2682852 |
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|
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Factory 3: |
CS-47and48, PIPDIC Industrial Estate, Mettupalayam, |
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Tel No.: |
91-413-2277364 |
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Fax No.: |
91-4132271691 |
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Zonal Offices: |
North Zone Office 2E/26, Jhandewala Extn. New Delhi-110055 Phone: 91-11-23544583 Fax: 91-11-3544583
Emami Limited, R.O. Door No: 3-D, No: 18,
Golden Chambers, 5th Floor, New Fax:
91-22 40390020 /2673 3820 East Zone Office 8, Phone: 033-22488654 / 8592 |
|
|
|
|
Overseas
Office : |
Emami UK Limited Phone
No:+44
(0) 20 89549748 Emami International
FZE
Fax
No:
97165754775 |
DIRECTORS
|
Name : |
Mr. R. S. Agarwal |
|
Designation : |
Chairman cum
Managing Chairman |
|
|
|
|
Name : |
Mr. R. S. Goenka |
|
Designation : |
Director |
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|
Name : |
Mr. Sushil Kumar Goenka |
|
Designation : |
Managing Director |
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|
Name : |
Mr. K. K. Kherma |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Viren J. Shah |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. N. Jalan |
|
Designation : |
Director |
|
|
|
|
Name : |
Ms. Vaidya S.
Chaturvedi |
|
Designation : |
Director |
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Name : |
Mr. Mohan Goenka |
|
Designation : |
Whole Time
Director |
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|
Name : |
Mr. A. V. Agarwal |
|
Designation : |
Whole Time
Director |
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|
Name : |
Mr. H. V. Agarwal |
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Designation : |
Whole Time
Director |
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|
Name : |
Mr. S. K. Todi |
|
Designation : |
Director |
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|
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|
Name : |
Mr. K. N. Memani |
|
Designation : |
Director |
KEY
EXECUTIVES
|
Name : |
Mr. A. K. Joshi |
|
Designation : |
Company Secretary |
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|
|
|
Name : |
Mr. G M Legal |
|
Designation : |
Company Secretary |
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 |
|
|
|
|
|
|
|
|
15,299,918 |
10.11 |
|
|
89,746,088 |
59.31 |
|
|
105,046,006 |
69.42 |
|
|
|
|
|
|
5,013,232 |
3.31 |
|
|
5,013,232 |
3.31 |
|
Total
shareholding of Promoter and Promoter Group (A) |
110,059,238 |
72.74 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
4,239,886 |
2.80 |
|
|
22,604 |
0.01 |
|
|
21,634,779 |
14.30 |
|
|
25,897,269 |
17.12 |
|
|
|
|
|
|
8,274,008 |
5.47 |
|
|
|
|
|
|
5,822,769 |
3.85 |
|
|
478,760 |
0.32 |
|
|
779,702 |
0.52 |
|
|
246,195 |
0.16 |
|
|
280 |
- |
|
|
533,227 |
0.35 |
|
|
15,355,239 |
10.15 |
|
Total Public
shareholding (B) |
41,252,508 |
27.26 |
|
Total (A)+(B) |
151,311,746 |
100.00 |
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total
(A)+(B)+(C) |
151,311,746 |
- |
(1)
Indian
Individuals
/ Hindu Undivided Family
Individual
shareholders holding nominal share capital up to Rs. 0.100 million
BUSINESS
DETAILS
|
Line of Business : |
Manufacturing and Marketing of personal and healthcare
products. |
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Products : |
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Brand Name : |
·
Navratna
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PRODUCTION STATUS
As on 31.03.2010
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Cosmetic and Toiletries |
M.T. |
NA |
11800 |
2400.35 |
|
Ayurvedic Medicines |
M.T. |
NA |
47129 |
12317.30 |
|
Other Ayurvedic (Tablets and Pills) (Nos in Lakhs) |
M.T. |
NA |
18500 |
3629.15 |
GENERAL INFORMATION
|
No. of Employees : |
1000
(Approximately) |
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Bankers : |
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Facilities: |
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Banking Relations : |
-- |
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Auditors : |
|
|
Name : |
S K Agarwal and Company Chartered Accountant |
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|
|
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Associates : |
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Subsidiaries : |
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CAPITAL STRUCTURE
As on
31.03.2010
Authorised
Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
80000000 |
Equity Shares |
Rs.2/- each |
Rs.160.000 millions |
|
|
|
|
|
Issued,
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
75655873 |
Equity Shares |
Rs.2/- each |
Rs.151.312 millions |
|
|
|
|
|
NOTE:
- Includes
28075000 Equity Shares issued as fully paid Bonus Shares by capitalisation
of Capital Redemption Reserve - Rs.25.000 Millions - and Revenue Reserves
- Rs.31.150 Millions
- Includes
31335873 (27825177) Equity Shares allotted for consideration other than
cash.
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 |
151.312 |
131.311 |
124.290 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
6042.405 |
2860.384 |
2765.732 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
6193.717 |
2991.695 |
2890.022 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1492.335 |
3730.608 |
351.946 |
|
|
2] Unsecured Loans |
1098.236 |
751.290 |
30.636 |
|
|
TOTAL BORROWING |
2590.571 |
4481.898 |
382.582 |
|
|
DEFERRED TAX LIABILITIES |
69.554 |
59.554 |
21.290 |
|
|
|
|
|
|
|
|
TOTAL |
8853.842 |
7533.147 |
3293.894 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
5608.458 |
6125.777 |
778.186 |
|
|
Capital work-in-progress |
62.065 |
366.980 |
134.748 |
|
|
|
|
|
|
|
|
INVESTMENT |
620.846 |
398.936 |
1029.653 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
Foreign Currency Monetary Item Translation Difference |
(14.116) |
31.376 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
786.097
|
731.981
|
400.997
|
|
|
Sundry Debtors |
727.347
|
507.498
|
340.293
|
|
|
Cash & Bank Balances |
1597.979
|
107.707
|
28.027
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
1002.632
|
742.613
|
1526.763
|
|
Total Current Assets |
4114.055
|
2089.799
|
2296.080
|
|
|
Less
: CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry
Creditors |
809.844
|
919.486
|
|
|
|
Other Current Liabilities |
34.242
|
66.206
|
|
|
|
Provisions |
693.380
|
494.029
|
|
|
Total Current Liabilities |
1537.466
|
1479.721
|
944.773
|
|
|
Net Current Assets |
2576.589
|
610.078
|
1351.307
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000
|
0.000
|
0.000
|
|
|
|
|
|
|
|
|
TOTAL |
8853.842 |
7533.147 |
3293.894 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
10068.542 |
7395.201 |
5837.104 |
|
|
|
Other Income |
67.018 |
74.380 |
26.603 |
|
|
|
TOTAL (A) |
10135.560 |
7469.581 |
5863.707 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Goods Sold |
3820.441 |
3087.688 |
2483.624 |
|
|
|
Manufacturing, Administrative and Selling Expenses |
3824.587 |
3085.494 |
2393.302 |
|
|
|
Transfer from General Reserve |
(1020.925) |
(96.454) |
0.000 |
|
|
|
Exceptional Items |
121.280 |
0.000 |
0.000 |
|
|
|
TOTAL (B) |
6745.383 |
6076.728 |
4876.926 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3390.177 |
1392.853 |
986.781 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
209.452 |
196.358 |
(62.506) |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3180.725 |
1196.495 |
1049.287 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1174.933 |
178.939 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2005.792 |
1017.556 |
1049.287 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
351.765 |
142.406 |
121.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
1654.027 |
875.150 |
927.487 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
246.248 |
164.758 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
1230.925 |
395.349 |
NA |
|
|
|
Dividend |
453.935 |
340.451 |
NA |
|
|
|
Tax on Dividend |
77.146 |
57.860 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
138.269 |
246.248 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
809.535 |
582.584 |
361.329 |
|
|
TOTAL EARNINGS |
809.535 |
582.584 |
361.329 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
46.849 |
41.976 |
|
|
|
|
Capital Goods |
66.911 |
74.762 |
|
|
|
TOTAL IMPORTS |
113.760 |
116.738 |
32.074 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
22.67 |
13.77 |
14.92 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 [1st Quarter] |
30.09.2010 [2nd Quarter] |
31.12.2010 [3rd
Quarter] |
|
Net Sales |
2314.200 |
2622.300 |
3944.300 |
|
Total Expenditure |
1640.600 |
1766.800 |
2714.900 |
|
PBIDT (Excl OI) |
673.600 |
855.500 |
1229.400 |
|
Other Income |
9.900 |
92.500 |
64.600 |
|
Operating Profit |
683.500 |
948.000 |
1294.000 |
|
Interest |
-13.600 |
0.000 |
0.000 |
|
Exceptional Items |
0.000 |
-1.900 |
0.000 |
|
PBDT |
697.100 |
946.100 |
1294.000 |
|
Depreciation |
291.400 |
294.700 |
293.200 |
|
Profit Before Tax |
405.700 |
651.400 |
1000.800 |
|
Tax |
33.500 |
84.800 |
181.100 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
372.200 |
566.600 |
819.700 |
|
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 |
372.200 |
566.600 |
819.700 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
16.32
|
11.72 |
15.82
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
19.92
|
13.76 |
17.98
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
20.63
|
12.38 |
34.13
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.32
|
0.34 |
0.36
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.67
|
1.99 |
0.46
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.67
|
1.41 |
2.43
|
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
In the Seventies, Kolkata based industrialists R S Agarwal
and R S Goenka was jointly promoted the business of Himani Limited. Over the
last three decades, Himani has not only emerged as a leading player in the
field of personal and health care products in
During the year 1995 the company increased the installed capacity of medicines
from 1440 MT to 1760 MT. During the same year the company initiated steps for
modernisation and technological upgradation in order to combat competition and
retain its market share.
Kolkata High Court has sanctioned the Scheme of Amalgamation. Accordingly
Subject has been amalgamted with Himani Limited, with effect from 1st April,
1998. Board has alloted 8,86,000 equity shares of the company to the Company,
as per amalgamation. Company's name has been changed from "Himani
Limited" to "Emami Limited” as on 1st Sept. 1998.
The company has expanded the installed capacity of Medicine during the year
2002-03 by 1000 MT and with this expansion the total capacity has been
increased to 15261 MT.
The total capacity of Toiletries, Medicines and Food products at the end of
financial year 2002-03 are 2391.70 MT, 15261 MT and 500 MT respectively.
FINANCIAL
RESULTS
Consequent to demerger of FMCG undertaking of The Zandu
Pharmaceutical Works Limited into Emami Limited and simultaneous demerger of
Realty undertaking of Emami Limited into Emami Infrastructure Limited with
effect from November 5, 2008, current year’s accounts includes performance of
Zandu FMCG undertaking and excludes that of Realty undertaking. Previous year’s
figures are, therefore not comparable with the current year’s figures.
REVIEW
OF OPERATIONS
Emami’s continuous endeavour for aggressive business growth has resulted
in achieving remarkable performance in FY 2009-10.
The Company recorded a turnover growth of 39% from Rs. 7223.500 Millions in 2008-09 to Rs. 10068.500 Millions in 2009-10. However, EBIDTA of the Company rose by 92% from Rs. 1296.400 Millions in 2008-09 to Rs. 2490.600 Millions. On the other hand, post-tax profit of the Company grew by 89% from Rs. 875.200 Millions in 2008-09 to Rs. 1654.000 Millions in 2009-10. Consolidated turnover of the Company grew by 39% from Rs. 7474.600 Millions in 2008-09 to Rs. 10379.800 Millions in 2009-10. Consolidated EBIDTA and profit after tax were recorded at Rs. 2324.900 Millions and Rs.1697.300 Millions in 2009-10 against Rs. 1142.200 Millions and Rs. 918.600 Millions in 2008-09 respectively.
The Company offers innovative, effective and value for money products based on ayurveda using modern laboratory practices. With Zandu in its fold, Company’s brand equity has further strengthened. Innovative R and D, aggressive marketing coupled with penetrative and expanding distribution network have helped deliver excellent results. Across the board cost-optimisation initiatives with focus on improving processes, controls and efficiencies have paved the way for robust sustainable growth.
A superior management team, aggressive branding strategies,
strong R and D capabilities and strive for innovation is expected to reinforce
the Company’s position in the industry, taking it to the next league of growth.
MANAGEMENT
DISCUSSION AND ANALYSIS
Raw material
management
Significance
In the manufacture of personal and healthcare products, the ability to
manage raw materials is critical for a number of reasons. One, the sheer variety
of raw materials that need to be procured, stored and used. Two, the delicate
interplay and balance required between the various raw material inputs. Three,
managing the changes in raw material quality without translating into changes
in product effectiveness. Four, the ability to manage cost variations through
prudent reengineering without needing to make corresponding changes in end
product price. The Company managed these challenges through strong supply chain
monitoring, stringent quality controls and pro-active R and D initiatives.
The Company completely replaced the traditional mouldmaking facility
with a newer and more efficient multimould
making technology. To enhance competitiveness, it hired professional
agencies to manage product design and artwork, resulting in packaging
innovations. The pricing of microcrystal wax, hard paraffin, stearic acid and
soot products were hedged through advance contracts and reverse auctions, among
others.
Highlights,
2009-10
- Saved around
Rs.100 millions on raw material costs as compared with budgeted costs
through various cost-rationalisation initiatives
- Undertook
farm forestry initiatives for amla
and honey production
Operational
excellence
Significance
In of personal and healthcare products manufacture, where the cost of
quality failure can be traumatic as the products are used directly by people,
competence is derived from the ability to produce at a consistently high
quality level at all times across all plants. Emami has seven manufacturing
units, of which three units enjoy fiscal benefits. The old manufacturing unit
at Kolkata is being modernised to handle efficient production of newer products
and a new R and D laboratory is being developed.
Highlights,
2009-10
- Introduced
Zandu Balm in a new bicolour plastic container
- Started
production of the Emami Malai Kesar soap
- Achieved
higher capacity utilisation across all the manufacturing units
- Received
cGMP, ISO 14000 and ISO 22000 certification (for the chyawanprash
manufacturing facilities). It also received Quality Circle award
(conducted by QCFAI: Quality Circle Control Federation of India) at the
regional and national level
- Shortlisted
for the IMEA (Indian Manufacturing Excellence Awards) and are awaiting an
audit
Sales and
distribution
Significance
In a business where consumers are dispersed across the country, success
is derived from the ability to deliver products to consumers quickest, farthest
and deepest, at the lowest cost. Emami invested significantly to create a
robust sales and distribution team that ensured constant product availability.
Highlights,
2009-10
- Witnessed a
35.8% revenue increase from Rs. 7646.300 millions in 2008-09 to Rs.
10379.800 millions
- Undertook
various merchandising initiatives, resulting in a 55% business growth from
CSD (defence)
- Extended the
super stockiest network to around 12 states, along with addition of 1,200
sub-stockers inremote areas with population levels below 20,000 people
- Added around
25,000 direct distribution outlets, taking the figure to 0.425 million
- Initiated
Project Gurukul, an in-house training centre for the sales and
distribution team
- Opened a new
depot in
Information
technology
Significance
In a business marked by a number of plant locations, branch offices, dealers,
warehouses and retail outlets, warranting information access, success is
derived from an ability to link these various organisational arms
electronically and generate precious ground level information leading to
informed decision making. IT infrastructure: The Company uses SAP ECC 5.0 (an
ERP package) to run its various business functions like material management,
production planning, sales and distribution, financials, quality and
controlling. The Zandu merger project was rated (by CTU Forum) among the top 10
IT innovation projects in
Highlights,
2009-10
- Completed the
Zandu-Emami integration project, resulting in all of Zandu’s business
applications (including manufacturing units) running live on Emami’s
server
- Embarked on a
secondary sales integration project (solution provided by UBQ Technology),
a highly appreciated effort
- Developed a
disaster recovery site by mirroring the primary site at a different
location to maintain 100% uptime at any point of time
Overview
Emami’s global footprint covers 64 geographies (SAARC, the Middle East,
Africa, CIS nations and
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 31st DECEMBER, 2010
(Rs. in Millions)
|
Particulars |
31.12.2010 Quarter Ended |
31.12.2010 Nine Months Ended |
|
Income |
|
|
|
a) Net Sales / Income from Operations |
3944.300 |
8880.800 |
|
Expenditure |
|
|
|
(a) (Increase)/decrease in Stock in Trade and Work in progress |
197.200 |
(144.500) |
|
(b) Consumption of Raw Materials |
922.800 |
2357.000 |
|
(c) Purchase of traded goods |
469.600 |
1284.200 |
|
(d) Employees Cost |
152.700 |
456.800 |
|
(e) Advertisement and Sales promotion |
770.500 |
1677.400 |
|
(f) Depreciation, Amortisation and Impairment |
293.200 |
879.300 |
|
(g) Transfer from General Reserve |
(255.200) |
(765.600) |
|
(h) Other Expenditure |
457.300 |
1257.000 |
|
Total Expenditure |
3008.100 |
7001.600 |
|
Profit / (Loss) From Operations before other Income Interest & Exceptional Items |
936.200 |
1879.200 |
|
Other Income |
41.100 |
110.500 |
|
Profit/(Loss) before Interest and Exceptional items |
977.300 |
1989.700 |
|
Interest |
(23.500) |
(70.100) |
|
Profit / (Loss) after interest before Exceptional items |
1000.800 |
2059.800 |
|
Exceptional Items |
0.000 |
1.900 |
|
Profit / (Loss) From
Ordinary activities before Tax |
1000.800 |
2057.900 |
|
Tax Expenses |
181.100 |
299.400 |
|
Net Profit/(Loss) From Ordinary activities after Tax |
819.700 |
1758.500 |
|
Extraordinary Items |
-- |
-- |
|
Net Profit/(Loss) for the period |
819.700 |
1758.500 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
151.300 |
151.300 |
|
Reserves (Excluding Revaluation Reserves) |
-- |
-- |
|
Basic and Diluted Earning Per Share (EPS) |
5.42 |
11.62 |
|
Aggregate of
non-promoters Share Holding |
|
|
|
- Number of Shares |
41252508 |
41252508 |
|
- Percentage of shareholding |
27.26% |
27.26% |
|
Promoters and Promoter group share holding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
16590000 |
16590000 |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
15.07% |
15.07% |
|
- Percentage of shares(as a % of the total share capital of the company) |
10.96% |
10.96% |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
93469238 |
93469238 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
84.93% |
84.93% |
|
- Percentage of Share (as a % of the total share capital of the company) |
61.77% |
61.77% |
Notes
:-
- The above results have been reviewed by the Audit Committee and approved
by the Board of Directors at their respective meetings held on 27th
January, 2011. The Statutory Auditors of the company have carried out
Limited Review of these results and the results are being published in
accordance with clause 41 of the Listing Agreement.
- The unaudited consolidated financial results comprise of Emami
Limited and its subsidiaries viz. Emami UK Limited, Emami International
FZE, and Emami Bangladesh Limited.
- During the quarter, Emami Overseas FZE, U.A.E and Pharma Derm S.AE.
Co.,
- As approved by the members vide postal ballot, the face value of
Equity Shares of Rs. 2 each has been sub-divided to Re. 1 per share with
effect from 23rd July, 2010 and the effect of the same has been considered
in computing EPS and promoter/non-promoter shareholding for previous
periods.
- In terms of scheme of arrangement effective from 5th November,2008,
there is an amortisation of goodwill of a sum of Rs. 1020.900 millions for
the year 2009-10 and simultaneous transfer from General Reserve to Profit
and Loss Account by an equivalent amount. Hence, the proportionate impact
of the same has also been considered in the quarter ended 31st
December,2009.
- As the Company’s business activity falls within a single primary
business segment, viz, Personal and Healthcare, the disclosure
requirements of Accounting Standard - 17 Segment Reporting, notified in
Companies (Accounting Standards) Rules, 2006 are not applicable.
- Number of Investor complaints for the quarter ended 31st December,
2010; Beginning - Nil, Received -16, Resolved - 16, Pending - Nil,
- Comparative figures have been rearranged / regrouped wherever
necessary.
FIXED
ASSETS:
- Land (Leasehold and Freehold)
- Buildings
- Plant and Machinery
- Furniture, Equipment and Computers
- Motor Vehicles
WEBSITE DETAILS
The inception of Emami Group took place way back in mid
seventies when two childhood friends, Mr. R.S. Agarwal and Mr. R.S. Goenka left
their high profile jobs with the Birla Group to set up Kemco Chemicals, an
Ayurvedic medicine and cosmetic manufacturing unit in Kolkata in 1974.
It was an extremely bold step in the early seventies when the Indian FMCG
market was still dominated by multinationals. Several such companies
headquartered in Kolkata were considering shifting out of
But against all odds with a vision of combining the age old wisdom of Ayurveda
with modern manufacturing techniques for creating winning brands the company
was started with a meager amount of Rs. 20,000.
A dream of reaching out to the Indian middle class; a target audience whom they
thought will have increasing potential for consumption, the company started
manufacturing cosmetic products as well as Ayurvedic medicines under the brand
name of Emami from a small factory in Kolkata.
In the early days the two friends used to go around places and sell their
cosmetics from shop to shop. They piled their goods on hand pulled rickshaws
and went on distribution drives making their brand extremely popular, available
and acceptable among consumers.
The first-rate quality of the products soon created a consumer pull and
gradually some people were hired to work for them. A chain of distributors was
established and the sale of Emami products spread from West Bengal to rest of
Emami Talcum, Emami Vanishing Cream and Emami Cold Cream were great favorite
brands with the quality conscious consumers in the mid-seventies. The company
soon became adept in selling beautiful dreams to Indian women interested in
finding their own identity. The signature tune of Emami played over radio and
TV became a household favorite.
In 1978, Himani Limited (incorporated as a Private Limited Company in 1949) had
become sick unit and was up for sale. Himani, almost a 100 year old company
with good brand equity in
Mr. Agarwal decided to produce in the Himani factory different types of health
care items and toiletries based on Ayurvedic preparation. Ten years after
commencement of the company, it launched their first flagship brand Boroplus
Antiseptic Cream under the Himani umbrella in 1984. Many additional brands
followed Boroplus including Boroplus Prickly Heat Powder which came as a brand
extension of the mother brand. Emami brands started selling in all states of
North, East and
Nineties was very eventful for Emami. The next flagship brand of the company
Navratna Cool Oil came in the nineties under the Himani Umbrella and the second
factory was opened at
The introduction of new brands continued and the distribution network of the
company was extended to
In 2000, with a view to concentrate on its core FMCG business, Emami's
investment undertaking was demerged and Pan Emami Cosmed Limited issued its
fully paid up shares to shareholders of Emami in the ratio of 1:1. In 2003 a
new factory unit was set up at Amingaon, Guwahati. A Public Issue of 50 lacs
Equity Shares of Rs2/- each at a price of Rs. 70 followed in 2005. The issue
was oversubscribed within few seconds of its opening with an overall over
subscription of 36 times of the issue size. The share price sold at Rs. 70
today is quoted in the stock market as Rs. 210.
In 2005 Emami created a marketing history in
In 2006 the company decided to introduce a Health Care Division and a number of
new brands of Ayurvedic OTC medicines. The company has taken up the challenge
of growing this new division with a dedicated and enthusiastic team working on
this project.
Among the brands created by the company, today Navratna brand is Rs.2000.000
Millions followed by Boroplus brand standing at Rs.1500.000 Millions and
Fairness family standing at Rs.550.000 Millions Sona Chandi Chyawanprash is
number two and Menthoplus and Fast Relief are number two in their respective
categories.
In 2006, J B Marketing and Finance Limited, the erstwhile marketing company of
the Emami Group merged with Emami Limited and the total turnover of Emami
including sales in domestic and export market stood at Rs 5160.000 Millions at
the end of the fiscal year 2006-07.
While subject is on lookout for acquisitions in
With in three decades, the company has grown into a huge Rs. 7000.000 Millions
subject under the flagship company of the Rs.20000.000 Millions Emami Group.
Subject is by Mr. R S Agarwal and Mr. R S Goenka with the help of the second
generation Promoter Directors from the two families. Qualified and dedicated
set of professionals run the day to day operations of the company. Recently a
new corporate office “
PROFILE:
Subject the flagship company of the Rs 20000.000 Millions
Emami Group, is a leading player in the personal and healthcare consumer
products industry in
Established by Mr. R S Agarwal and Mr. R S Goenka in 1974,
Subject has over 25 brands under its portfolio.The company’s financials show it
has repeatedly outperformed the industry standards. Subject has maintained a
CAGR of 25% over the last three years compared to the industry average of
16-17%
Understanding the human needs and fulfilling them by dint of
technical research is a positive feature of Emami. This is being made possible
by Himani Ayurveda Science Foundation (HASF) that generates the very best of
ayurvedic formulations. The foundation’s unique range of healthcare products
aptly caters to consumer needs. The world class quality control methods and
processes maintained by HASF ensure optimum utility of each ingredient. The
foundation is completely engaged in constant innovation and pharmaceutical
enhancements.
Boroplus brand is the market leader in the antiseptic cream
segment; the Navratna Oil is also in the pole position in the cool oil segment.
Fair and Handsome is the pioneer in the fairness cream for men segment. Emami’s
products in different categories like cool oil, antiseptic cream, fairness
cream for men, and the crčme herbal hair pack have carved a niche for
themselves in their respective segments.
Boroplus has been selected as among the top 100 brands by
the Brand Equity of The Economic Times. In 2006 and 2007, Navratna has been
ranked the 6th Most Energized Indian Brand by the DYandR Brand Asset Valuator.
Sona Chandi Chyawanprash, Himani Fast Relief, (ayurvedic
pain relief ointment) Mentho plus (pain balm), Hairlife (crčme herbal hair
pack) and Emami Malai Kesar (cold cream) are also major players in their
respective categories. Brand extensions have helped Emami consolidate its
position in the market and also cater to varied consumer needs.
Emami has recently entered the glycerine soap category with
Emami Pure Skin and petroleum jelly category with Emami Vasocare.
Emami has successfully established its brands through strong
celebrity endorsements. It is the only corporate entity in the country to have
both Amitabh Bachchan and Shah Rukh Khan as brand endorsers for the same brand,
Navratna. The concept of brand endorsement by celebrities has been successfully
experimented in case of 25 brand launches. Besides Amitabh and Shah Rukh, other
celebrity endorsers of Emami’s brand include Madhuri Dixit, Kareena Kapoor,
Govinda, Sourav Ganguly, Chiranjeevi, Surya and Upendra among others.
Emami has also taken up a major revamping project to enhance
the sales and distribution, human resources development and logistics with the
globally renowned professional advisory services firm, Ernst and Young.
‘Project Navodaya’, as it is truly called, will help Emami fast track its
topline and bottom-line growth and build a robust platform for growth
initiatives
Emami covers all the states with 28 depots across
The company has ultra modern manufacturing facilities all
across
Recently subject with an investment of Rs 7000.000 Millions
has acquired major stake in Zandu Pharmaceuticals Works Limited on the basis of
huge business synergy between Zandu and Emami.
Subject has recently been conferred the Most Enterprising
Company of the Year by IIPM (Indian Institute of Planning and Management) and
The Sunday Indian publication of the Planman Media Group. In 2007, the company
received the
In East India Emami occupies leadership in sectors such as
paper and newsprint, private hospital, edible oil, bio-diesel and real estate.
Emami also has presence in ball pen tips manufacturing, contemporary art and
retail chain with Frank Ross and Starmark. Emami has also signed a MoU for a
cement plant in Chhattisgarh.
International
Business:
Emami International
Marketing Division (IMD)
Emami IMD reaches out to nearly 60 countries in the CIS, Middle East, Indian
sub-continent, Europe and
The International Marketing Division was established in the 90-s to cater
mainly to the demand of Indians settled abroad. The business was then small and
it has over the years assumed increasing proportions with a phenomenal topline
growth rate of more than 40%. Initially Emami IMD exported only the brands and
products that Emami marketed in
Rich Experience in Beauty
and Personal Care
The expertise acquired in herbal skincare products is one of the main sources
of present and future strengths. Through intensively researching nature, Emami
has excelled in developing a head-to toe line of beauty and personal care
products focused at providing safe and proven solutions to family’s day-to-day
health concerns. Today, Emami markets its products under four brands – Emami,
Himani, Ayucare and Emita, across different categories such as skincare, hair
care, personal care and health care. The
Its portfolio comprises over 40 product ranges made from
natural extracts, herbs and essential oils. These products reflect a prudent
combination of Ayurvedic knowledge and scientific manufacturing processes. The
underlying values and goals continue to be an innovator of premium beauty
products that enhance the appearance, health, and general well-being of people
around the world.
Clear Geographical
Focus:
They compete globally. To accelerate growth, Emami IMD will focus on clearly
defined geographical priorities. CIS countries, GCC, and
Key brands
As an international branded consumer goods Company, Emami IMD is clearly
focused to build brands, developing superior consumer insights and finding out
how to delight consumers and offer them brands that are relevant and meet
consumer wishes.
The past decade has witnessed enhancement of the Boroplus brand equity in the
CIS and
Overseas Offices
To strengthen its exports in terms of marketing activities and better
penetration and availability of products, marketing offices in the
The division is expected to set up offices in
Emami's mission of a contributing whole heartedly towards
the environment and society' attains a more humane form with its approach of
addressing various social issues. As a responsible corporate citizen, Emami
continues to invest in socially meaningful projects in
Highlights of "Self
Employment" scheme
Emami Mobile Traders
> This scheme covers small to large villages with population ranging from
1500 to 5000.
> The selected persons are involved in door to door
selling of Emami products in interior villages.
Depending on the
effort and motivation of the individual, the monthly earning varies between Rs
500 to Rs 2000 per month.
> On an average they can earn 18% on the sale value of
the products.
> Emami does not take any deposit from the selected individuals
and takes back unsold stocks if required
> Emami guarantees a minimum income of Rs 1000 per month provided a total
sale of Rs 4000 is achieved per month
> Proper training of sales and marketing skills
> Free product samples were supplied for personal use to
give prospective consumers a first-hand experience.
> Uniform, raincoats and pullovers and personal accident
insurance cover is provided
> Cycles at 50% rates on installment payment can be
purchased
> This scheme is being promoted mostly for women in villages
where there are no permanent shops.
> The housewives put up the Small Village Shops at their
own village residence
> They market the Emami products from their home to the
other villagers
> The housewives are encouraged to take up this challenge
with the help of NGOs and voluntary
workers working in villages
> Emami does not take any deposit from the women and
takes back the unsold products
> Emami do not take any deposit from the selected
individuals and take back unsold stocks if required.
> The marketing training given by Emami helps the person
to find selling opportunities for other items
manufactured by micro enterprises as well
The Roll Out
An initial trial in
Community Medical Support
The Company sponsors subsidized treatment of the needy in
best-in-class hospitals like AMRI and
Top of
Form
Partners
and Progress:
Subject is one of the largest and most respected consumer
goods companies in
Subject believes in the concept of Partner and Progress by which they want to
bring the key stakeholders closer together to meet mutual business
requirements.
With this Approach, Emami is ready to join hands with the Distribution
Partners, Research Institutes, Creative Partners, Media and Advertising
Agencies, Suppliers and Consultants and walk towards success in all ventures.
The strategic benefits of partnering include the ability to develop a new
market (domestic/ international), a new product (research and development) or a
new technology, to share technology or combine complementary technology to
create a production/ distribution facility and other such collaborations.
Subject believes in and supports a cooperative culture and spirit among the
strategic partners that lends to trust, resource sharing, and a friendly
chemistry among the parties.
Brand:
Subject is one of the major health and personal care FMCG
companies in
MILESTONES
In the year 1978 Himani Limited a 70-year-old company was acquired. Today the successful Boroplus Cream is from Himani, a pioneer in herbal cosmetics in the country. After years of experimentation, Boroplus Antiseptic Cream was launched.
Sensing success in the field of plastics, the Group incorporated Classic Plastics Private Limited, which manufactures blow moulding containers and bottles for the cosmetics industries and jerry cans for oil companies.
Due to Emami’s overwhelming success in
The Emami Group has taken a giant step into a field not ventured by them so far – the field of medicine. The former Frank Ross Limited is now a member of the Emami Group, and manufactures ethical life saving drugs.
CRI Limited today is recognized as the leader in
manufacturing Tips and Refills for ball Point Pen in
Capitalizing Exports on the liberal economic policy of
the Government of India, the Emami Group is making successful ventures into the
foreign market with increased momentum. The Emami Group has overseas
representation in the following countries such as
· Personal and Health Care
· Paper
· CRI Tips
· Wright Pens
· Marketing Activities
· Hospital
· Shopping Centres
BOARD
OF DIRECTORS
MR.
RADHE SHYAM AGARWAL,
Mr. Radhe Shyam Agarwal, Executive Chairman, 62, is a Chartered Accountant,
Company Secretary and LLB. Started career as a senior executive of the Birla
Group. Started a joint venture with Shri R.S. Goenka by setting up an ayurvedic
medicine and cosmetic manufacturing unit in Kolkata,
MR. RADHE SHYAM
GOENKA,
Mr. Radhe Shyam Goenka, Director, 61, is an M.Com and LLB. Started career in 1970 with
the Birla Group of Industries. Expert in taxation, strategic planning,
corporate affairs and financial planning. Started a joint venture with Mr. R.
S. Agarwal by setting up an ayurvedic medicine and cosmetic manufacturing unit
in Kolkata,
MR. SUSHIL
KUMAR GOENKA,
Mr. Sushil Kumar Goenka, Managing Director,
52, is a commerce graduate, who joined the Emami Group following graduation.
Rich industry experience. Secretary of Aradhana Trust, Vishwa Jagriti Mission Trust
(Kolkata) and
MR.
VIREN J. SHAH,
Mr. Viren J. Shah, Director,
82, is an AMP from the Harvard Business School, USA, with a special
expertise in general business management. Served as
Mr. K.N.
Memani,
Mr. K.N. Memani, Director,
69, is a senior chartered accountant. Former Chairman and country
managing partner of
MR.
SHRAWAN KUMAR TODI,
Mr. Shrawan Kumar Todi, Director, 67, is an M.Com. Chairman of the Shrachi Group
of Companies and Board member of Advance Medicare and Research Institute
Limited, Bengal NRI Complex Limited, Bengal Shrachi Housing Development
Limited, Bengal Tools Limited, Emami Paper Mills Limited, Bhaskar Shrachi
Alloys Limited, South City Kolkata Projects Limited, Khaitan (India) Limited,
Pratidin Prakashani (P) Limited, Shrachi Securities Limited and Web Development
Company Limited, among others. Member of the managing committee of Associated
Chamber of Commerce and Industries, New Delhi, Executive Committee Member of
Merchants’ Chamber of Commerce (MCC) and the Chairman of the Development
Committee of Marwari Hospital. Trustee of Manovikas Kendra Rehabilitation and
Research Institute for handicapped, a government body. Non- Executive
Independent Director of company.
MR.
SHYAMANAND JALAN,
Mr. Shyamanand Jalan, 74, is a commerce graduate and LLB.
Attorney and member of the Incorporated Law Society,
MR.
KRISHNA KUMAR KHEMKA,
Mr. Krishna Kumar Khemka, Director, 75, is a science graduate. Set up many mega
projects in the fields of tyres, pulp and paper, heavy chemicals, etc. Former
Chairman of the Indian Paper Mills Association, former president of the Rotary
Club of Calcutta, Indo-American Chamber of Commerce, Indo-Italian Chamber of
Commerce, etc. Committee member of the Bharat Chamber of Commerce and
associated with other chambers. Honorary Consul General of the
MRS.
VAIDYA SURESH CHATURVEDI,
Mrs. Vaidya Suresh Chaturvedi, Director, 80, is a Kaviraj, Ayurvedacharya, BIMS and
MAMS. Held key positions in the Rastriya Ayurveda Mandal, India Academy of
Sexology and the Indian Association of Traditional Asian Medicines. Member of
Occult
MR.
MOHAN GOENKA,
Mr. Mohan Goenka, Wholetime
Director, 35, is a commerce graduate with an MBA from
MR.
ADITYA VARDHAN AGARWAL,
Mr. Aditya Vardhan Agarwal, Wholtime Director, 33, is a commerce graduate. Director
of several companies. Extensive knowledge and experience in marketing and brand
development. Past Ex. Director, Committee Member and Chairman (FMCG) of
ASSOCHAM, vice-president of West Bengal Basketball Association and an advisor
of the Academy of Ayurvedic Doctors of India, Kolkata.
MR.
HARSH VARDHAN AGARWAL,
Mr. Harsh Vardhan Agarwal, Wholetime Director, 31, is a commerce graduate. Possesses
extensive knowledge in marketing and brand development and served as a Director
of several companies.
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.44.78 |
|
|
1 |
Rs.73.42 |
|
Euro |
1 |
Rs.65.27 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--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 |
|
70 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
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.