MIRA
INFORM REPORT
|
Report Date : |
25.10.2011 |
IDENTIFICATION DETAILS
|
Name : |
MARICO LIMITED |
|
|
|
|
Registered
Office : |
Rang Sharda Kishanchand Marg, Bandra Reclamation, Bandra (W), Mumbai –
400050, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
13.10.1988 |
|
|
|
|
Com. Reg. No.: |
11-049208 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.614.400 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L15140MH1988PLC049208 |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Shares 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 35000000 |
|
|
|
|
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.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INFORMATION PARTED BY
|
Name : |
Mr. Dheeraj |
|
Designation : |
Accounts Department |
LOCATIONS
|
Registered Office : |
Rang Sharda Kishanchand Marg, Bandra Reclamation, Bandra (W), Mumbai –
400050, |
|
Tel. No.: |
91-22-66480480 |
|
Fax No.: |
91-22-66490112 |
|
E-Mail : |
|
|
Website : |
|
|
Location : |
Owned |
|
|
|
|
Regional Offices : |
Located At: 210-B, Swapanlok Complex, Tel No.: 91-40-27813351/ 55260067 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 Tel No.: 91-33-22470750/ 22477629 No.5, Tel No.: 91-11-26383370/ 8167/ 8168 |
|
|
|
|
Factories : |
Located At : ·
Daman ·
Dehradun ·
Goa ·
Jalgaon ·
Himachal ·
Muds ·
Kerala ·
Pondicherry ·
Paonta Saheb
|
DIRECTORS
As on 31.03.2011
|
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 |
|
|
|
|
Name : |
Mr. B.S. Nagesh |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mrs. Hemangi Wadkar |
|
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 30.09.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of
Promoter and Promoter Group |
|
|
|
|
|
|
|
|
83782500 |
13.68 |
|
|
8822000 |
1.43 |
|
|
293504000 |
47.74 |
|
|
293504000 |
47.74 |
|
|
386376520 |
62.80 |
|
|
|
|
|
Total shareholding of
Promoter and Promoter Group (A) |
386376520 |
62.80 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
24181936 |
3.93 |
|
|
66176 |
0.01 |
|
|
7044780 |
1.15 |
|
|
156208572 |
25.41 |
|
|
3000 |
- |
|
|
3000 |
- |
|
|
187504464 |
30.50 |
|
|
|
|
|
|
14773041 |
2.40 |
|
|
|
|
|
|
20415226 |
3.32 |
|
|
147896 |
0.53 |
|
|
2786757 |
0.45 |
|
|
147896 |
0.02 |
|
|
1969630 |
0.32 |
|
|
81514 |
0.01 |
|
|
58771 |
0.09 |
|
|
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 |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
614,399,550 |
- |
(1)
Indian
Individuals
/ Hindu Undivided Family
TrustsBUSINESS DETAILS
|
Line of Business : |
Manufacturer of consumer daily products. |
||||||||
|
|
|
||||||||
|
Products : |
|
||||||||
|
|
|
GENERAL INFORMATION
|
No. of Employees : |
981 (Approximately), Group (2592) |
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Price Waterhouse Chartered Accountant |
|
|
|
|
Internal Auditors : |
Aneja Associates Chartered Accountant |
|
|
|
|
Subsidiaries : |
Marico Bangladesh Limited |
|
|
|
|
|
1) CPF International
(Pty) Limited (100% holding by Marico south Africa (Pty) Ltd) 2) The DRx
Clinic Pte. Limited (100% holding by Derma – Rx International Aesthetics Pte.
Limited ) w.e.f. May 25, 2010 3) The DRx
Medispa Pte. Limited. (100% holding by Derma – Rx International Aesthetics
Pte. Limited.) w.e.f. May 25, 2010 4) DRx
Investments Pte. Limited. (100% holding by Derma – Rx International
Aesthetics Pte. Limited.) w.e.f. May 25, 2010 5) DRx
Aesthetics Sdn. Bhd. (100% holding by DRx Investments Pte. Limited.) w.e.f.
May 25, 2010 6) DRx Meditech
Pte. Limited (w.e.f. May 25, 2010 upto Feb 28, 2011 – merged with Derma – Rx
International Aesthetics Pte. Limited.
w.e.f. March 1, 2011) 7) Beauté
Cosmétique Societé Par Actions (99% holding by International Consumer Products
Corporation) w.e.f. Feb 18, 2011 8) Thuan Phat
Foodstuff Joint Stock Company (87% holding by International Consumer Products
Corporation) w.e.f. Feb 18, 2011 |
CAPITAL STRUCTURE
As on 31.03.2011
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 |
|
|
|
|
|
|
614399550 |
Equity Shares |
Rs.1/- each |
Rs.614.400
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 27.07.2011
Authorised Capital : Rs. 2150.000 Millions
Issued, Subscribed & Paid-up
Capital : Rs.614.831 Millions
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
614.400 |
609.300 |
609.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
8116.800 |
5107.300 |
3068.500 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
8731.200 |
5716.600 |
3677.500 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3324.200 |
996.100 |
812.200 |
|
|
2] Unsecured Loans |
2200.700 |
2773.100 |
2266.100 |
|
|
TOTAL BORROWING |
5524.900 |
3769.200 |
3078.300 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
14256.100 |
9485.800 |
6755.800 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2224.600 |
1299.700 |
1159.100 |
|
|
Capital work-in-progress |
455.200 |
1099.500 |
456.000 |
|
|
Assets held for disposal |
1.800 |
0.100 |
0.100 |
|
|
|
|
|
|
|
|
INVESTMENT |
4703.600 |
2091.100 |
1125.800 |
|
|
DEFERREX TAX ASSETS |
265.400 |
585.000 |
634.100 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
4542.200
|
3699.000
|
2736.900 |
|
|
Sundry Debtors |
1189.800
|
945.100
|
610.500 |
|
|
Cash & Bank Balances |
181.700
|
112.100
|
229.800 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
3295.700
|
2541.700
|
2062.300 |
|
Total
Current Assets |
9209.400
|
7297.900
|
5639.500 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2025.200
|
2106.600
|
1786.300 |
|
|
Other Current Liabilities |
258.800
|
158.500
|
163.800 |
|
|
Provisions |
319.600
|
622.400
|
308.700 |
|
Total
Current Liabilities |
2603.900
|
2887.500
|
2258.800 |
|
|
Net Current Assets |
6605.500
|
4410.400
|
3380.700 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
14256.100 |
9485.800 |
6755.800 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
23468.700 |
20242.900 |
19171.700 |
|
|
|
Income from Services |
0.000 |
0.000 |
2.900 |
|
|
|
Other Income |
251.700 |
220.600 |
145.300 |
|
|
|
TOTAL (A) |
23720.400 |
20463.500 |
19319.900 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials |
13643.000 |
10851.000 |
11570.300 |
|
|
|
Manufacturing and Other Expenses |
6411.200 |
6251.700 |
5101.400 |
|
|
|
TOTAL (B) |
20054.200 |
17102.700 |
16671.700 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3666.200 |
3360.800 |
2648.200 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES (D) |
299.200 |
183.000 |
289.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3367.000 |
3177.800 |
2359.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
276.300 |
252.100 |
170.300 |
|
|
|
|
|
|
|
|
|
Add |
EXCEPTIONAL
ITEMS |
(654.700) |
0.000 |
(478.600) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
3745.400 |
2925.700 |
1710.100 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
592.200 |
575.500 |
289.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
3153.200 |
2350.200 |
1421.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
3825.800 |
2331.000 |
1518.800 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
315.300 |
235.000 |
142.100 |
|
|
|
Debenture Redemption Reserve |
166.700 |
150.000 |
0.000 |
|
|
|
Interim Dividend |
66.400 |
402.100 |
398.900 |
|
|
|
Tax on Interim Dividend |
405.400 |
68.300 |
67.800 |
|
|
BALANCE CARRIED
TO THE B/S |
953.800 |
3825.800 |
2331.000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. Value |
1391.600 |
1306.400 |
1251.400 |
|
|
|
Royalty |
68.400 |
65.600 |
43.900 |
|
|
|
Dividend |
44.800 |
46.900 |
20.600 |
|
|
|
Interest |
40.300 |
44.100 |
22.100 |
|
|
TOTAL EARNINGS |
1545.100 |
1463.000 |
1338.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
328.000 |
844.500 |
871.600 |
|
|
|
Packing Material |
27.000 |
64.200 |
112.800 |
|
|
|
Capital Goods |
1.600 |
5.000 |
24.800 |
|
|
|
Finished Goods for Resale |
18.800 |
32.000 |
14.500 |
|
|
TOTAL IMPORTS |
375.400 |
945.700 |
1023.700 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) (Basic) |
5.1 |
3.86 |
2.33 |
|
|
|
Earnings Per
Share (Rs.) (Diluted) |
|
3.84 |
2.33 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
31.06.2011 |
|
|
|
1st
Quarter |
|
Net Sales |
|
8075.950 |
|
Total Expenditure |
|
7004.010 |
|
PBIDT (Excl OI) |
|
1071.940 |
|
Other Income |
|
1071.940 |
|
Operating Profit |
|
43.100 |
|
Interest |
|
1115.040 |
|
Exceptional Items |
|
65.980 |
|
PBDT |
|
0.000 |
|
Depreciation |
|
1049.060 |
|
Profit Before Tax |
|
71.330 |
|
Tax |
|
977.730 |
|
Provisions and contingencies |
|
161.560 |
|
Profit After Tax |
|
816.170 |
|
Extraordinary Items |
|
0.000 |
|
Prior Period Expenses |
|
0.000 |
|
Other Adjustments |
|
0.000 |
|
Net Profit |
|
816.170 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
15.78 |
11.48
|
7.35 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
15.95 |
14.45
|
8.92 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
32.75 |
34.03
|
25.15 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.42 |
0.51
|
0.46 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.93 |
1.16
|
1.45 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.53 |
2.53
|
2.50 |
LOCAL AGENCY FURTHER INFORMATION
REVIEW OF OPERATIONS Marico achieved a strong growth of 18% in revenue over the previous year and registered a top line of Rs 31280.000 millions during FY11. A substantial part of the growth was organic growth, with 12% volume led growth while the remaining came from price increases and sales mix. The top line increase was accompanied by a bottom-line growth of 24%, after considering the impact of extra-ordinary / exceptional items. Profit After Tax (PAT) including exceptional / extra-ordinary items during the year was at Rs 2864.000 millions as against Rs. 2320.000 millions in FY10. The financials for FY11 include certain exceptional items of Rs 4890.000 millions (Rs 294.000 millions on account of write back of provision towards contingent excise duty liability provided in FY10, Rs. 500.000 millions on account of profit on sale of Sweekar intellectual property rights, Rs. 77.000 millions on account of impairment of clinic assets in Kaya Limited and Rs 227.700 millions on account of impairment of intangibles related to Fiancée business) while the financials of FY 10 include certain exceptional items . The exceptional items have been explained in detail in the Management Discussion and Analysis, which is an integral part of this Report. Had it not been for these items, the PAT for FY11 would have been Rs. 2563.000 millions, a growth of 6% over FY10 (extraordinary items excluded from the comparable figure in the previous year).
During the year, Marico extended its record of year on year quarterly growth.
Q4FY11 was on a Y-o-Y basis: The 42nd consecutive Quarter of growth in Turnover and The 46th 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 22 % and 27% respectively
CONSUMER PRODUCTS BUSINESS: INDIA
Parachute,
Maricos flagship brand, continued to expand its franchise during the year. Parachute coconut oil in
rigid packs, the focus part of its
portfolio, grew by 8% in volume as compared to FY10. Coconut oil category as a whole grew by 5% in volume as
compared to FY10. The volume growth have
been lower than expected due to steep rise in the input prices due to which the Company took
the prices up of the Products. 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 hair oil, Parachute Advansed Cooling oil, Parachute Jasmine non
sticky hair oil, Nihar Naturals perfumed
hair oil, Hair & Care nourishing non sticky hair oil, Hair and Care Almond Gold and Shanti Badam
Amla hair oil). During the year, all
Maricos hair oil brands recorded healthy growth and the portfolio as a whole grew by about 23% in
volume terms over FY10. Super Premium
edible oils brand Saffola grew by about 16% in volume terms compared to FY10. These growths were aided by
introduction of new products.
Marico has been constantly investing in a healthy
pipeline of new products. During the year your company launched new
prototypes. These included variants of Saffola Rice Arise
(Basmati and Long grain) - lower GI
rice, Parachute Advansed Ayurvedic hair fall solution and Parachute Advansed Body Lotion.
INTERNATIONAL FMCG BUSINESS
From a single digit share in FY05, about 23%
of the groups turnover is now
contributed by Maricos International FMCG business. Its key geographical presence is in
Bangladesh, MENA (Middle East and North Africa), Malaysia, South Africa and
Vietnam.
Maricos
South African subsidiary acquired the healthcare brand Ingwe. Its product portfolio complements the
existing healthcare brand Hercules. In
February 2011, Marico strengthened its entry into the South East Asian region through the
acquisition of International Consumer
Products in Vietnam.
During FY11, the companys international
business recorded a turnover growth of 22% over FY10. Much of this growth was
derived from consumer franchise expansion - about 19%, accompanied by price led
growth of 8%. However, this was impacted
adversely by forex appreciation of 5%.
Political disturbance in the MENA region adversely effected the growth
of the international business in Q4 of FY11.
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.
It now offers its technology led cosmetic dermatological services through 103 clinics: 81 in India
across 26 cities and 16 in the Middle
East, 2 in Dhaka and 4 clinics through Derma Rx in Singapore and Malaysia.
During the year Kaya acquired Singapore based
skin care solutions business Derma Rx. This gave Kaya an access to an advanced
skin care market in terms of a wide
bouquet of products and technology capable of
being transported across geographies.
Kayas offering are in the nature of
discretionary spends. We had seen a down turn in Kayas performance in FY10 due
to some external and internal factors.
While external macro environment is picking up we had identified customer retention and share of
product sales as key issues to be
addressed internally during FY11. There were efforts put to tackle these issues. Kaya has seen a
reasonable success as a result of these
measures taken.
Our overall experience with Kaya Skin care
business has been encouraging. This is a
fairly young business- only 8 years since its
inception. We have already experienced, in a few accounting
periods, profitability at both clinic
level and regional level. Maricos belief
in the Kaya Business model is therefore intact, especially as we perceive the long term opportunity in skin
care solutions to be significant.
OTHER
CORPORATE DEVELOPMENTS
ACQUISITION
OF DERMA RX
Kaya Limited, Maricos wholly owned subsidiary
delivering skin care solutions in India acquired the cosmetic dermatological
business of the Singapore based Derma Rx
Asia Pacific Pte Limited (DRx AP). This
acquisition provides Kaya access to a range of highly efficacious skin care products. These products are capable of
being transported across geographies.
Some of these products have already been introduced in India and are in the process of being
introduced in the Middle East. We
believe that it will help in increasing the share of products to total
revenue of Kaya.
Acquisition
of the Brand Ingwe Marico, through its wholly owned subsidiary, Marico South
Africa (Pty) Limited acquired the brand Ingwe from South Africa
based Guideline Trading Company. The range
comprises immuno boosters focused on the
ethnic consumer in South Africa. The acquisition of Ingwe brings in
a range of products that complements
that of MSAs brand Hercules.
ACQUISITION OF THE INTERNATIONAL CONSUMER
PRODUCTS (ICP)
Marico strengthened its foot hold in South
East Asia by taking up 85% equity in International Consumer Products
Corporation (ICP), one of the most
successful Vietnamese FMCG companies. ICP was founded, in 2001, by Dr. Phan Quoc Cong and his partner. Its
brands (X-Men, LOvite, Thuan Phat and
others) have a significant presence across personal care, beauty cosmetics and sauces/ condiments
categories. X-Men is a leading player in
the male grooming segment in Vietnam and is the 2nd Most Trusted Personal Care brand in the country.
With over 35% market share, it leads the
mens shampoo category. LOvite, the companys premium cosmetics brand ranks amongst the top 5
premium cosmetics brands in Vietnam
DIVESTMENT OF BRAND SWEEKAR
Marico divested its refined sunflower oil
brand Sweekar to Cargill India private Limited (Cargill). This is in line with
Companys focus towards wellness platform
through Saffola and thus focusing on healthy
edible oils and functional foods.
MANAGEMENT DISCUSSION AND ANALYSIS :
In line with the
requirements of the Listing Agreement with the Bombay Stock Exchange and
National Stock Exchange, your Company has been reporting consolidated results
taking into account the results of its subsidiaries. This discussion therefore
covers the financial results and other developments during the period April
2010-March 2011, with respect to Marico Consolidated comprising Domestic
Consumer Products Business under Marico Limited (Marico) in India,
International Consumer Products Business comprising exports from Marico and the
operations of its overseas subsidiaries and the skin care solutions business of
Kaya in India and overseas. The consolidated entity has been referred to as’
Marico' or 'Group' or 'Your Group' in this discussion.
Some statements in this
discussion describing projections, estimates, expectations or outlook may be
forward looking. Actual results may however differ materially from those stated
on account of various factors such as changes in government regulations, tax
regimes, economic developments within India and the countries within which the
Group conducts its business, exchange rate and interest rate movements, impact
of competing products and their pricing, product demand and supply constraints.
INDUSTRY STRUCTURE,
OPPORTUNITIES AND THREATS
India's Fast Moving
Consumer Goods (FMCG) sector is estimated to be about INR 1300billion having
shown an annual growth of about 11% per annum over the last decade. Robust
growth in India's Gross Domestic Product (GDP), growing urbanization, evolving
consumer lifestyles and increased income in rural areas are some of the key
drivers of growth. The FMCG segment includes products like soaps, detergents,
oral care, hair care and skin care products, food and beverages, oils and dairy
products.
Opportunities are
opening up for FMCG marketers in India in various household income segments.
The affluent, comprising about 1% of the population, are willing to buy premium
products for their emotional value or exclusivity. The upper middle class, comprising
about 2% of the population, may aspire to emulate the affluent. These two
segments are driving the fast growth of premium and masstige products. While
they make up a small proportion of the consuming base in the country, their
numbers are expanding rapidly and are expected to double over the next decade.
The numbers in the middle class are expected to expand significantly over the
next decade. Comprising about 11% of the population today, this segment is
likely to grow to nearly 30% by 2020. These consumers are becoming more aware
about products and their benefits and taking informed decisions. While price is
important, the consumer also demands value. Finally, there is the Bottom of the
Pyramid(BOP) opportunity in India. These consumers are largely rural, spending
on essentials with very little demand for expensive lifestyle products. These
markets have hitherto been poorly served owing to infrastructural constraints.
India's demographic
dividend is highlighted by the fact that it has 17% of the world’s population
and that half of these people are below the age of 25. With a median age of
25years, increasing numbers are joining the Indian workforce. Whereas China's
dependency ratio bottoms in the next five years, for India it's likely to
bottom out only in 2040.India's share in world consumer spending is set to
increase from 1.9% in 2005 to 3.1% in2020. (Source: Technopak) Income in the
hands of younger consumers with a higher propensity to spend, is providing
buoyancy to the economy while opening up new categories in the FMCG space. With
more women joining India's workforce, FMCG marketers are finding opportunities
to introduce products in the convenience and health foods segments. While
spending on women's personal care products is also becoming far more acceptable
and guilt-free.
Rapid shifts in income
profiles are leading to an evolution of product categories. At the higher
income levels, there is a need for more sophistication and customization to
individual tastes. Personal preferences also drive multiple brand purchases
within households, unlike the earlier trend of using only a single brand or
product. Therefore, marketers are introducing several variants of products to
cater to a wider set of preferences. Products are also being segmented to cater
separately to the needs of men, women and children. Mass customization is
likely to intensify with FMCG players profiling potential buyers by attributes
such as age, region, skin type and ethnic background.
Consumers are steadily
shifting from low prices to a price-plus platform. They now tend to balance
price with quality, convenience, consistency, innovation and shopping
experience. The quality conscious consumer is willing to pay a premium for
effective solutions, improved services and a superior experience. The focus of
marketers is to provide consumers with a holistic solution for their needs in
the form of a consolidated offering of various products and services.
India's FMCG market can
be divided into two segments urban and rural. The urban segments characterized
by high penetration levels and higher spending propensity of the urban resident
as compared to his rural counterpart. The trend towards urbanization continues,
with migration of rural citizens to urban areas. The number of urban towns has
increased significantly, estimated at 53% over the last two decades.
Rural India accounts for
70% of India's population and is estimated to account for 56%of national income
and 64% of expenditure. This market is seeing significant income growth and
employment diversity for the first time in its history. Income derived directly
from agriculture has reduced to around 40% with farmers often multitasking.
However, the indirect dependence of the rural economy on agriculture is still
high. Infrastructural investments in roads, railways and telecom have led to
improved connectivity in rural India with a positive impact on growth,
employment, education and health care. The Government’s initiatives such as
National Rural Employment Guarantee Act (NREGA), other employment generation
schemes, waiver of loans and managing minimum support prices of select
agricultural output are resulting in higher disposable incomes and consumption
trends in rural India. The most recent initiative of providing a Unique
Identification Number (UID) will further strengthen the position of people
living in rural areas. Rural markets comprise about 34% of the total FMCG
market. In recent times, the growth rate has overtaken that of the urban
markets. Category penetration, however, still remains low, providing
significant headroom for growth. With organized FMCG players accessing these
markets, rural consumers are becoming increasingly brand conscious. However
affordability remains a challenge, giving rise to a large market for small size
SKUs.
India is currently going
through a socioeconomic change; the country is witnessing an expansion of
existing markets and the creation of many new ones. The beauty products market
is expected to grow by 15%-20% in the future as a result of the changing
socio-economic status of Indian consumers, especially women. Better paying jobs
and exposure to fashion and beauty trends in the developed world through
television and other media have resulted in changing tastes and choices. Middle
class women are more conscious of their appearance and are willing to spend
more on enhancing it. Modernization has led to changing aspirations where the
need to be considered good-looking, well-groomed and stylish has taken on a
newfound importance. This has changed the mindset of saving for future.
Accordingly, people are spending more on consumption. As a result, hair care
and skin care products are expected to show healthy growth. Indian men are also
becoming conscious about their appearance, creating a market for male grooming
products. There is also an increased awareness about good health practices.
Sedentary lifestyles and unhealthy habits have led to the rise of
lifestyle-related diseases such as diabetes and heart problems. Increased
awareness is leading to a demand for healthier products with lower calories,
less sugar, lower glycemic index, higher nutritional content and higher fiber.
Though there has been a
growth in modern retail format stores in India, a significant share of business
is still generated through the ‘mom and pop’ store (kirana)format. With better
infrastructure aiding access to the rural economy, it is likely that’ mom and
pop’ stores will remain the chief point of interface of the FMCG companies with
the retail consumer. Organized retail comprises about 5% of FMCG business, but
is expected to grow rapidly and expand its share over the next few years,
reaching 11%by 2015 and nearly 30% by 2020. The share of certain categories
such as processed foods and beverages is expected to grow rapidly within
organized retail. Several formats existwithin organized retail such as hyper
marts, supermarkets and cash-and-carry (wholesale).It is expected that formats
will evolve and new formats may come up in the future. There has been a rise in
private labels and these could provide tough competition, particularly to
players that are not differentiated and relatively weaker brands. Organized
retail isalso expected to make investments in information technology to
optimize supply chain efficiencies. This will also require strong backward
integration with distributors and manufacturers.
India Incorporated is
looking to grow inorganically. It is important to go global, not only to create
multiple growth engines, but also to create reverse learning for the home
market. The year gone by has seen a number of overseas acquisitions made by
Indian FMCG companies. Also, the emerging economies in Asia and Africa have
low-to-medium penetrations in some of the FMCG categories. This signifies
considerable headroom for growth in themed-term. Favorable macro-economic
factors, changing attitudes of the consumers and progressive policies of
governments also make these markets attractive destinations. Typically,
gestation periods .tend to be longer as one needs to go up the learning curve
in a new market. Some of them also offer inorganic entry possibilities that can
create access to mainstream distribution, manufacturing and talent. This can
speed up one's learning curve as long as there is a strategic fit with the target.
RESULTS OF OPERATIONS AN
OVERVIEW
Marico achieved a
turnover of Rs. 3128
crore during FY11, a growth of 18% over FY10.The volume growth underlying this
revenue growth was healthy at 12%.
Profit after tax (PAT)
for FY11 was 2860.000 millions, a growth of 24% over FY10. These results
include the following items that are not strictly comparable with FY10. Each of
these items is explained in detail in the Notes to the Consolidated Annual
Financial Statements:
• Reversal of Excise
Duty Provision of Rs. 294.000
millions made during FY10 towards contingent excise duty obligation in respect
of dispatches of coconut oil in packs up to200 ml (Please refer to Note 27,
Schedule R);
• Profit on divestment
of edible oil brand ‘Sweekar’ amounting to Rs. 50crore (Please refer to Note 14
(b), Schedule R);
• Impact of change in
accounting estimates relating to revenue recognition in Kay amounting to Rs. 313.200
millions (Please refer to Note 16, Schedule R );
• Impairment Provision
impact of Rs. 77.400
millions as a result of impairment
testing at clinic level at Kaya Skin clinics in India (Please refer to Note 14
(d), Schedule R);
• Impairment of tangible
and intangible assets relating to the business of Fiancée amounting to Rs. 227.000
millions (Please refer to Note 14(c), Schedule R) and
• Amortization of
Intangible assets (brands) held by overseas subsidiaries amounting to Rs. 95.000
millions (Please refer to Note 15,
Schedule R).
Also, there is an
increase in depreciation by
Rs. 3.09 crore as a result of review of remaining useful life of
certain assets at Kaya Skin clinics.
Similarly there were
certain one-time items included in FY10 results which are not strictly
comparable such as Write-off of Translation Reserve pertaining business
amounting to Rs. 41.000
millions and closure costs of Kaya Life Centres amounting to Rs. 57.000
millions.
If these items were to
be ignored, the Sales and PAT for the year under review would have been higher
at Rs. 31570.000
millions, a growth of 19% over FY10, and Rs. 3000.000 millions, a growth of 15%
over FY10, respectively.
Marico has kept up its
track record of quarterly growth. Q4FY11 was in Y-o-Y terms, the:
• 42nd consecutive
Quarter of growth in Turnover and
• 46th consecutive
Quarter of growth in Profits
Over the past 5 years,
the Sales and PAT have grown at a compounded annual growth rateof 22% and 27%
respectively
FINANCE CHARGES
Financial charges
include interest on loans and other financial charges. There is an increase in
finance costs owing partly to an increase in the overall interest rate regime
and partly on account of increased borrowings. Borrowings are higher primarily
on account of the acquisitions of Derma Rx, Ingwe and shares in ICP as well as
higher inventory owing to inflation in input costs.
OUTLOOK
• Fundamentals in place
to leverage India growth story
• New product pipeline
being made robust scalability a key objective
• Continued growth in
international business, near term MENA environment uncertain
• Kaya India showing
early signs of recovery
Marico will continue to
focus on its long term strategic objectives, with a bias towards franchise
expansion in its businesses. In coconut oils in India, we will aim to grow the
market through low-unit size packs. We expect to achieve volume growth of 6%
to8% per annum in the medium term. In hair oils in India, Marico will focus on
share gain through introduction of differentiated and innovative products,
providing specificity to consumers, accompanied by effective communication.
Successful execution of this strategy is expected to result in annual volume
growth of 15% to 17% over the next 2-3 years. The Company’s efforts in
expanding rural reach is also expected to contribute towards franchise
expansion in coconut oils and hair oils. Saffola is riding a trend in healthy
living being adopted by the Indian consumer. The brand expects to continue to
grow its basket of premium refined edible oil by about 15% in volume each year.
In addition Marico plans to build a sizeable business in the healthy foods
space by leveraging Saffola's health equity.
In the international
consumer products business, Marico will focus on growing the categories where
it has significant market share - coconut oil in Bangladesh and male hair
grooming in MENA and Vietnam. We will complement the growth of Parachute
Coconut Oil in Bangladesh with the introduction of other products. In South
Africa, we will work on increasing share in key categories, and over the medium
term expand our footprint to other parts of sub-Saharan Africa. In the
immediate term, our approach in MENA will be cautious. However, our current
penetration levels indicate positive long term potential in this market. Code
10 in Malaysia is expected to continue at a very healthy growth rate, albeit on
a small base. In Vietnam, we will focus on the process of integration. The
business is expected to grow in healthy double digits, though the bottom line
may be modest owing tothe conscious strategy of higher investments in
advertising during the year.
The Kaya skin business
in India is showing early signs of recovery, having posted growth at same
clinic level in H2FY11. In the short term therefore, we will work on improving
its revenue streams from the existing clinics in India and bring the business
back on the growth track. We will continue to invest in new clinic growth
through expansion in the Middle East. It has taken Kaya longer to achieve
profitability than what we had earlier anticipated. The long-term
attractiveness of the business, however, remains intact.
The medium to long-term
outlook on all the three businesses remains positive. Marico will thus focus on
strengthening the building blocks for future value creation - strong equities
for its existing brands amongst its consumers, volume growths, robust new
product pipelines and competitive supply chain effectiveness.
FIXED ASSETS:
- Freehold land
- Leasehold land
- Buildings
- Plant and machinery
- Furniture and fittings
- Vehicles
INTANGIBLE ASSETS:
- Trademarks and
- Copyrights
- Computer software
BUSINESS DESCRIPTION
Marico Limited is engaged in the business of branded fast moving consumer goods and branded services. The Company operates in two segments: consumer products and others. The Company’s consumer products include coconut oils, other edible oils, hair oils and other hair care products, male grooming products, fabric care products, healthy foods, soaps, health care products, female beauty care products. Others is engaged in skin care. In India, Marico manufactures and markets products under the brands include Parachute, Nihar, Saffola, Mediker and Manjal. In August 2010, Marico through its wholly owned subsidiary Marico South Africa (Pty) Ltd (MSA) acquired the brand Ingwe from the South Africa-based Guideline Trading Company. In February 18, 2011, the Company acquired 85% interest in International Consumer Products Corporation (ICP). During the fiscal year ended March 31, 2011, Kaya Limited, Marico’s wholly owned subsidiary of Company acquired Derma Rx Asia Pacific Pte Ltd (DRx AP). For the nine months ended 31 December 2010, Marico Limited's revenues increased 16% to RS23.99B. Net income increased 19% to RS2.15B. Revenues reflect an increase in income from Consumer Products division and higher revenue from other segment. Net income also reflects an increase operating margin, higher other income, the absence of exceptional items and a decline in interest expense. The company is engaged in the production of fast moving goods
PRESS RELEASE
ACCORD FINTECH
(INDIA)
18 October 2011
India, Oct. 18 --
Marico Ltd has informed BSE that November 11, 2011 has been fixed as the Record
Date for the purpose of payment of First Interim Dividend.]Further, the date of
payment of dividend will be November 25, 2011. Published by HT Syndication with
permission from ACCORD FINTECH BSE.
ACCORD FINTECH
(INDIA)
18 October 2011
India, Oct. 18 --
Marico has informed that November 11, 2011 has been fixed as the record date
for the purpose of payment of first interim dividend. Further, the date of
payment of dividend will be November 25, 2011.The above information is part of
the company's filing submitted to the BSE. Published by HT Syndication with
permission from Accord Fintech.
FINANCIAL EXPRESS
(INDIA)
16 October 2011
Bangladesh, Oct. 16 -- Doulot Akter
Mala
About 1200 large businesses will
come under the new networking system of the National Board of Revenue (NBR)
from January next as the tax authority has made installation of prescribed
software mandatory replacing the existing one.
The businesses include banks,
insurance, mobile phone operators, hotels, restaurants, manufacturing
companies, shoe, plastic goods, chain shops, corrugated iron (cg) sheet,
furniture, beverage, etc.
Those businesses have to buy the NBR
prescribed complete software and have to customize it with their own system.
The NBR has made the rule mandatory
for large businesses that pay VAT above Tk 5.0 million and above annually.
The NBR held a meeting recently to
expedite selection of software companies who will prepare the software for
companies. Bangladesh Association of Software and Information Services (BASIS)
and all commissioners of the VAT wing attended the meeting.
"The NBR will form a committee
to select some firms evaluating their expertise to prepare the software as per
requirements of the tax authority. The big companies will have to buy it for
their businesses," said a senior VAT official.
The NBR has stipulated .a 12-point
eligibility criterion for the software companies to apply to the NBR for
getting the task of developing the software.
He said the NBR has found an
applicant company 'Innovia Technology Limited' possessing expertise to meet the
criteria.
The official said the process of
selection of companies should be geared up as it would need three months to
prepare software and customize it with the respective company.
"It's time to expedite the
matter if the NBR wants to implement it from first day of the next calendar
year," he said.
He said some big companies have
already installed software for maintaining their accounts but it is not a
complete one to meet demands of the taxmen.
Although those companies have
obtained permission from the NBR before installing it, they have to replace the
software now following the new instructions came in the budget for current
fiscal, he said.
"We have issued letter to the
businesses to get preparation on installing the software," said a
commissioner of VAT field office.
Mandatory rule on installation of
Electronic Cash Register (ECR) will remain valid for small and medium shops
while new software will be made mandatory from January 1, 2012 for large
businesses, he said.
Head of corporate affairs of Marico
Bangladesh Limited, Md Iqbal Chowdhury, welcomed the installation of new
software saying that it would reduce manual interaction between taxmen and
taxpayers.
"VAT is a complicated law.
Businessmen have to take separate registration for separate transaction or
businesses under a single wing," he said.
Uniform software can simplify system
of accepting price declaration by taxmen, submission of Chalan (invoice) etc,
he said.
"Businessmen now submit chalan
in every 72 hours in VAT offices. Such manual interaction should be shifted
into online system," he added.
Businesses can tag
the new software with POS (point of sale) system. Published by HT Syndication
with permission from The Financial Express.
MINT
13 OCTOBER 2011
Mumbai, Oct. 13 -- Consumer packaged
goods companies are expected to post impressive earnings growth in the quarter
ended 30 September driven by higher revenue on the back of modest volume growth
and price increases.
A survey of six brokerages-ICICI
Securities Limited, IDFC Securities Limited, Kotak Institutional Equities,
Motilal Oswal Financial Services Limited, Prabhudas Lilladher Private Limited
and Sharekhan Limited shows that analysts estimate profit growth of 7-17% and
sales growth of 15-20%.
Margins, though, will continue to
remain under pressure. While the average price of key inputs saw a sequential
dip in the quarter, prices of most commodities were still higher over the
year-ago period. For instance, the price of palm oil-a key input for Hindustan
Unilever Ltd (HUL) and Godrej Consumer Products Ltd (GCPL)-was higher by 15%
year-on-year (y-o-y). The price of copra, the key input for Marico Ltd was
higher by over 50% y-o-y, according to a 7 October report by Sharekhan.
"We expect the growth during
the quarter to be a healthy mix of volume and value. In fact, we have chosen to
focus on top line growth, even if it were to come at the cost of margins,"
said Milind Sarwate, group chief financial officer and chief human resources
officer, Marico Limited.
To offset the pressure on margins,
companies hiked prices, reduced advertisement expenses and cut operational
expenses. "Hence, we expect margins to witness a slight respite in the
quarter ending September on a quarter-on-quarter basis but remain pressurized
on a y-o-y basis," said a 5 October ICICI Securities report.
However, it may not be easy for all
companies to keep hiking prices or bring down advertising expenses any further
given the intensifying competition and worries about discretionary spending in
a slowing economy, analysts said.
Colgate Palmolive Limited, for
instance, has adopted an aggressive pricing strategy to take on competition
from HUL and Dabur. The toothpaste maker is also engaged in an advertising war,
with its Colgate Sensitive Pro Relief pitched against GlaxoSmithKline Consumer
Healthcare Limited's Sensodyne.
Aggressive pricing and the
advertising war will act as a drag on the earnings growth of Colgate Palmolive,
a 4 October report by Motilal Oswal said. "This also shows a glimpse of
the competitive intensity and its impact if Procter and Gamble enters the mainstream
toothpaste market," the report said.
Motilal Oswal expects ITC Limited to
post 17% sales growth, driven by a 7% volume growth in cigarettes, and 20% net
profit growth. HUL's sales are likely to grow 14% with Ebitda (earnings before
interest, taxes, depreciation and amortization) margin expansion of 30 basis
points to 13.9%. It's net profit is expected to grow by 13.1%. One basis point
is one hundredth of a percentage point.
Marico is expected to report sales
growth of 24% y-o-y, driven by price hikes of key products Parachute and
Saffola, and profit growth of 12.5%, according to a 5 October Kotak
Institutional Equities report.
The stock market has already
factored a robust earnings season into share prices, analysts said.
The FMCG index has risen 7% so far
this year as the benchmark equity index, the Sensex, has dropped 20% in the
same period. At 26 times estimated earnings, the FMCG index is trading above
its five-year historical price-earnings average of 23. For the quarter ended 30
September, the FMCG index fell 3.34%, compared to decline of 12.69% in the
Sensex in the same period.
With price increases looking
difficult, the outlook for consumer goods makers will depend on volume growth
prospects and input costs, analysts said.
"Any guidance that companies
provide on volume growth and commodity costs will be keenly watched,"
wrote Prabhat Awasthi and Nipun Prem of Nomura Financial Advisory and
Securities (India) Private Limited in a 10 October note to clients.
"The December
quarter will be better as the trends are positive and demand is good,"
said Ullas Kamath, deputy managing director, Jyothy Laboratories Limited, the
maker of fabric whitener Ujala. Published by HT Syndication with permission
from MINT.
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 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. 49.87 |
|
|
1 |
Rs. 79.72 |
|
Euro |
1 |
Rs. 69.52 |
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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.