MIRA INFORM REPORT
|
Report Date : |
15.12.2012 |
IDENTIFICATION DETAILS
|
Name : |
PROCTER AND GAMBLE HYGIENE AND HEALTH CARE LIMITED |
|
|
|
|
Registered
Office : |
P and G Plaza, Cardinal Gracias Road, Chakala, Andheri (East), Mumbai –
400099, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
30.06.2012 |
|
|
|
|
Date of
Incorporation : |
20.07.1964 |
|
|
|
|
Com. Reg. No.: |
11-012971 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 324.607 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24239MH1964PLC012971 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMP10705C |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturer and Market Health Care and Feminine Hygiene Products |
|
|
|
|
No. of Employees
: |
370 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 27880000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a part of Global P and G Group. Available information indicates high financial responsibility of the company.
Trade relations are fair. Financial position of the company is strong.
Payments are correct and as per commitments. The company is doing very well. It 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-ail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to
become a major exporter of information technology services and software
workers. In 2010, the Indian economy rebounded robustly from the global
financial crisis - in large part because of strong domestic demand - and growth
exceeded 8% year-on-year in real terms. However, India's economic growth in
2011 slowed because of persistently high inflation and interest rates and
little progress on economic reforms. High international crude prices have
exacerbated the government's fuel subsidy expenditures contributing to a higher
fiscal deficit, and a worsening current account deficit. Little economic reform
took place in 2011 largely due to corruption scandals that have slowed legislative
work. India's medium-term growth outlook is positive due to a young population
and corresponding low dependency ratio, healthy savings and investment rates,
and increasing integration into the global economy. India has many long-term
challenges that it has not yet fully addressed, including widespread poverty,
inadequate physical and social infrastructure, limited non-agricultural
employment opportunities, scarce access to quality basic and higher education,
and accommodating rural-to-urban migration.
|
Source
: CIA |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
P and G Plaza, |
|
Tel. No.: |
91-22-28266000 |
|
Fax No.: |
91-22-66939696 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1 : |
173, 314, 315, Kundaim Industrial Estate, Kundaim-40311, |
|
|
|
|
Factory 2 : |
Plot 2, GDDIDC Honda, Bhuipal, Sattari - 403506, |
|
|
|
|
Factory 3 : |
Khasara No. 1808-09, Village- Doria, Export Park, Thana, Near Ino
Pharma, P.O. Baddi, Tehsil-Nalagarh, District Solan-173205, Himachal Pradesh,
India |
|
|
|
|
Factory 4 : |
Village Katha, Near Charak Pharma, P.O. Baddi, Tehsil-Nalagarh,
Solan-173205, |
DIRECTORS
As on 30.06.2012
|
Name : |
Mr. R. A. Shah |
|
Designation : |
Chairman |
|
Date of Birth/Age : |
81 years |
|
Date of Appointment : |
20.07.1964 |
|
Other Directorship: |
|
|
|
|
|
Name : |
Mr. Shantanu Khosla |
|
Designation : |
Managing Director |
|
Date of Birth/Age : |
52 years |
|
Date of Appointment : |
27.08.2001 |
|
Other Directorship: |
|
|
|
|
|
Name : |
Mr. B.S. Mehta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Amit Vyas |
|
Designation : |
Director |
|
Date of Birth/Age : |
44 years |
|
Date of Appointment : |
22.12.2011 |
|
Other Directorship: |
Procter and Gamble Home Products Limited |
|
|
|
|
Name : |
Mr. Pramod Agarwal |
|
Designation : |
Director |
|
Date of Birth/Age : |
50 years |
|
Date of Appointment : |
13.08.2012 |
|
Other Directorship: |
Gillette India Limited |
KEY EXECUTIVES
|
Name : |
Mr. S. Harlalka |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2012
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
619683 |
1.91 |
|
|
619683 |
1.91 |
|
|
|
|
|
|
22310090 |
68.73 |
|
|
22310090 |
68.73 |
|
Total shareholding
of Promoter and Promoter Group (A) |
22929773 |
70.64 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
2507218 |
7.72 |
|
|
156068 |
0.48 |
|
|
915786 |
2.82 |
|
|
686399 |
2.11 |
|
|
4265471 |
13.14 |
|
|
|
|
|
|
844197 |
2.60 |
|
|
|
|
|
|
3801270 |
11.71 |
|
|
484222 |
1.49 |
|
|
135803 |
0.42 |
|
|
91141 |
0.28 |
|
|
451 |
0.00 |
|
|
15384 |
0.05 |
|
|
22468 |
0.07 |
|
|
6359 |
0.02 |
|
|
5265492 |
16.22 |
|
Total Public
shareholding (B) |
9530963 |
29.36 |
|
Total (A)+(B) |
32460736 |
100.00 |
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total
(A)+(B)+(C) |
32460736 |
0.00 |
Equity Share Break up (Percentage of Total Equity)
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Market Health Care and Feminine Hygiene Products |
GENERAL INFORMATION
|
No. of Employees : |
370 (Approximately) |
|
|
|
|
Bankers : |
Not Available |
|
|
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
|
|
|
Group Companies : |
|
|
|
|
|
Ultimate Holding
Company : |
The Procter and Gamble Company, USA |
|
|
|
|
Holding Company
: |
Procter and Gamble Asia Holding BV |
|
|
|
|
Fellow
Subsidiaries: |
|
CAPITAL STRUCTURE
As on 30.06.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
35000000 |
Equity Shares |
Rs.10/- each |
Rs. 350.000 Millions |
|
|
|
|
|
Issued, Subscribed and Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
32460736 |
Equity Shares |
Rs.10/- each |
Rs. 324.607 Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.06.2012 |
30.06.2011 |
30.06.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
324.607 |
324.607 |
324.607 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
6645.754 |
5681.701 |
5021.789 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
6970.361 |
6006.308 |
5346.396 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
28.102 |
22.438 |
|
|
|
|
|
|
|
|
TOTAL |
6970.361 |
6034.410 |
5368.834 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1983.932 |
1903.813 |
1303.933 |
|
|
Capital work-in-progress |
289.052 |
76.356 |
664.409 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX ASSETS |
15.349 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
922.673
|
653.344 |
544.062
|
|
|
Sundry Debtors |
481.513
|
310.192 |
286.814
|
|
|
Cash & Bank Balances |
1823.652
|
1299.518 |
2323.271
|
|
|
Other Current Assets |
211.394
|
143.040 |
84.395
|
|
|
Loans & Advances |
5257.774
|
4390.579 |
3061.570
|
|
Total
Current Assets |
8697.006
|
6796.673 |
6300.112 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2553.558
|
1541.212 |
1871.702
|
|
|
Other Current Liabilities |
543.672
|
286.599 |
118.335
|
|
|
Provisions |
917.748
|
914.621 |
909.583
|
|
Total
Current Liabilities |
4014.978
|
2742.432 |
2899.620 |
|
|
Net Current Assets |
4682.028
|
4054.241 |
3400.492
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
6970.361 |
6034.410 |
5368.834 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.06.2012 |
30.06.2011 |
30.06.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1297.409 |
10028.696 |
9028.677 |
|
|
|
Other Income |
509.162 |
354.085 |
302.440 |
|
|
|
TOTAL (A) |
1806.571 |
10382.781 |
9331.117 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Raw and Packing Material
Consumed |
3958.928 |
2996.993 |
|
|
|
|
Purchase of Stock-in-Trade |
1450.639 |
905.310 |
|
|
|
|
Changes in inventories of Finished
Goods, Work-in-Progress and Stock-in-Trade |
646.599 |
505.682 |
|
|
|
|
Employee Benefits Expenses |
5082.549 |
3992.149 |
|
|
|
|
Other Expense |
(166.726) |
(6.582) |
|
|
|
|
TOTAL (B) |
10971.989 |
8393.552 |
6744.364 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2511.260 |
1989.229 |
2586.753 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
0.329 |
0.260 |
0.251 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2510.931 |
1988.969 |
2586.502 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
280.754 |
221.550 |
250.258 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2230.177 |
1767.419 |
2336.244 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
417.274 |
258.656 |
538.590 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1812.903 |
1508.763 |
1797.654 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
3289.940 |
2780.928 |
2014.745 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
730.367 |
730.367 |
730.366 |
|
|
|
Dividend |
118.484 |
118.484 |
121.305 |
|
|
|
Tax on Dividend |
181.300 |
150.900 |
179.800 |
|
|
BALANCE CARRIED
TO THE B/S |
4072.692 |
3289.940 |
2780.928 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Business process outsourcing income |
2.262 |
3.021 |
10.884 |
|
|
|
Research and Development and other cross recovery |
4.269 |
2.371 |
2.623 |
|
|
|
Exports of goods
calculated on F.O.B. basis |
75.627 |
48.070 |
96.922 |
|
|
|
Others (freight,
insurance etc) |
2.187 |
2.704 |
9.050 |
|
|
TOTAL EARNINGS |
84.345 |
56.166 |
119.479 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw materials |
1297.187 |
1034.470 |
843.882 |
|
|
|
Spare parts |
42.875 |
16.298 |
26.315 |
|
|
|
Capital goods |
272.615 |
85.679 |
240.292 |
|
|
TOTAL IMPORTS |
1612.677 |
1136.447 |
1110.489 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
55.85 |
46.48 |
55.38 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.09.2012 1st
Quarter |
|
Net Sales |
|
3756.200 |
|
Total Expenditure |
|
3327.800 |
|
PBIDT (Excl OI) |
|
428.400 |
|
Other Income |
|
280.900 |
|
Operating Profit |
|
709.300 |
|
Interest |
|
0.000 |
|
Exceptional Items |
|
0.000 |
|
PBDT |
|
709.300 |
|
Depreciation |
|
77.500 |
|
Profit Before Tax |
|
631.800 |
|
Tax |
|
179.100 |
|
Provisions and contingencies |
|
0.000 |
|
Profit After Tax |
|
452.700 |
|
Extraordinary Items |
|
0.000 |
|
Prior Period Expenses |
|
0.000 |
|
Other Adjustments |
|
0.000 |
|
Net Profit |
|
452.700 |
KEY RATIOS
|
PARTICULARS |
|
30.06.2012 |
30.06.2011 |
30.06.2010 |
|
PAT / Total Income |
(%) |
100.35
|
14.53 |
19.27 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
171.89
|
17.62 |
25.88 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
20.88
|
20.31 |
30.72 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.32
|
0.29 |
0.44 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.58
|
0.46 |
0.54 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.17
|
2.48 |
2.17 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if
applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
----- |
|
23] |
Banking Details |
No |
|
24] |
Banking facility details |
No |
|
25] |
Conduct of the banking
account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director,
if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
No |
BUSINESS ENVIRONMENT The Indian macroeconomic environment has looked turbulent during the past year. After a promising start to the decade in 2010-11, with achievements like maintaining GDP growth rate around 8%, bringing down fiscal deficit to 4.8% of GDP as well as containing current account deficit to 2.6%, the fiscal year 2011-12 has been challenging for the Indian Economy. The year started on a note of optimism through impressive growth in exports and high levels of foreign exchange inflows, only to moderate as the year progressed through continued monetary tightening in response to the untamed inflationary pressures. Gradually, high levels of inflation gave way to a slow-down in the growth. Additionally, as fiscal conditions worsened over the year, export numbers were revised in light of data discrepancies leading to a widening of trade deficit. In light of a perceivably weak macroeconomic environment, a well-planned economic revival policy from the Government`s part is required to get back the Indian Economy on the path to stable and prosperous growth. Fall of rupee against major currencies, new norms of standard-size packaging, increase in raw material costs due to upward spiraling interest rates and inflation, together might adversely impact the performance of the FMCG products. India needs sustained capital inflows to finance its growing current-account deficit. Although economic reforms appear to have slowed down, it appears that FIIs are continuing to invest in India. However, it is also an undeniable fact that the Government continues to face challenges in attracting foreign direct investment (FDI). As per World Bank`s report titled `Global Economic Prospects` the Indian economy will grow by 6.9% in this Financial Year (2012-13) notwithstanding problems like policy uncertainties, fiscal deficit and inflation. BUSINESS PERFORMANCE The Company`s strong performance continued in the Financial Year 2011-12, despite difficult economic conditions, new competitive entrants and inflationary market conditions. With a focus on balancing needs of the consumer, the customer and the members, they are delighted to report very strong financial results for the Company. The Company achieved a healthy double-digit sales growth during the Financial Year 2011-12. Sales for the Financial Year increased by 25% at Rs. 13010.000 millions as against Rs. 10370.000 millions during the previous year. Earnings after tax increased by 20% at Rs.1810.000 millions as against Rs. 1510.000 millions during the previous year. Feminine Hygiene Business Feminine Hygiene business has been a major growth driver for the Financial Year with business up strong double digits with the various variants of Whisper Sanitary Napkins showing consistent growth. The Company continues to deliver amongst the sales and share growth for P and G across the globe, with Whisper increasing its market share and Whisper Ultra being the largest value share brand in the market behind strategic initiatives. This growth is driven both by increase in penetration among non-users and consumption among users. During the Financial Year, a number of initiatives were designed to meet the consumers` needs across segments. All these initiatives led to the Whisper share crossing its all time national high of 54.1 with growth across all major Brands. Healthcare Business The Company`s Healthcare sales posted a double digit growth this Financial Year across Vicks VapoRub, Vicks Cough Drops, Vicks Action 500 and Vicks Inhaler. This growth was driven by a combination of product initiatives and increased investment behind proven equity advertising. Vicks VapoRub had a record year posting the highest ever market share. The Vicks Cough Drops business was the fastest growing in the Vicks franchise. Vicks will continue to innovate to ensure it stays the most trusted cough and cold care solution in India. The Healthcare business further strengthened Vicks equity as one of the most trusted Brand in India driven by the launch of Vicks VapoCool, a premium throat drop with the dual-benefit of soothing the throat and giving relief from blocked nose. Overall, the Company continued to focus on driving consumer meaningful innovations backed by distribution expansion and strong advertising support thereby recording a consistent growth across all areas of business. Earnings have also benefited from focus on mix, pricing and cost control. Cash generation continued to be strong arising from significant improvements in the business performance, efficiencies and cost savings across the organization and a continued efficient collection system. The Company managed investments prudently by deployment of the surplus funds after ensuring that such investments satisfied the Company`s criteria of safety and security. Strong results have been possible due to several key initiatives which focused on consumers, retail customers with a stronger focus on innovation, greater effectiveness and efficiency across all costs, while strengthening organizational leadership.
MANAGEMENT DISCUSSION AND ANALYSIS Review of Economic Scenario and impact of Union Budget 2012: The Indian Economy showed signs of slowdown during the past year and the same could be attributed to the Global Economic Slowdown. The Economic Survey 2011-12 states that despite a slowdown in the growth rate of the Indian Economy as compared to the preceding two years, India remains among the front runners in allcross country comparisons. The Survey further states that despite difficult conditions in the global economy, exports continued to be robust in the current year and registered a growth rate of 14.3% in real terms over and above the 22.7% growth achieved in the previous year (2010-2011), as per Advance Estimates. The Survey also states that, the growth rate of private final consumption expenditure has been fairly consistent even when the economy`s growth rate has fluctuated. The global economic environment, which has been tenuous at best throughout the year, turned sharply adverse in September, 2011 owing to turmoil in Eurozone and questions about the outlook on the US Economy provoked by rating agencies. However, for the Indian Economy, the outlook for growth and price stability looks more promising. The Union Budget 2012-13 was presented by the Finance Minister in the wake of a challenging business environment and weak global economic conditions. With a sombre global outlook, sustained slowdown in Indian GDP growth, high inflation, elevated deficits and low investor confidence, the current year has been testing for the Indian economy. The good news is that, while the GDP achieved of 6.9% was low as compared to that of previous years, comparatively it still put India in the top five economies of the world. Further the Finance Minister clearly pointed out that India has been able to limit the adverse impact of the global slowdown on its economy and is at the cusp of a revival, as agriculture and services have continued to grow at a decent pace. Further he also pointed out that there are various other indicators that suggest that the economy is now turning around, namely, the signs of recovery in coal, fertilizer, cement and electricity sectors. The FMCG Sector and Indian consumers The Indian FMCG sector is the fourth largest in the Indian economy and has a market size of $13.1 billion. The FMCG sector has attracted a large number of consumers in both the urban and rural sectors in India in the past few decades through better penetration and low-priced products. Various manufacturers of FMCG products are concentrating on increasing the sales volume due to the rising demand of the consumers. Creativity and innovation are the major attributes required for success in this sector. Large-scale FMCG companies including the Company P and G have won the hearts of the consumers by delivering high-end and innovative products at affordable range. A large number of FMCG companies derive a significant proportion of their overall sales from outside the top few 100 towns/cities, which reflects the growing economic importance of India`s rural consumer base. Rural India accounts for close to one-third of the total consumption pie. Robust consumption in the rural economy is one of the key drivers of India`s sustained growth. FMCG companies are devising exclusive rural marketing strategies to tap the rural consumer base. Performance Overview and Outlook The Company operates in a single reportable business and geographical segment. The Company`s core business is manufacturing, marketing and distribution of Healthcare and Feminine Hygiene products. Under these businesses it has in its portfolio: VICKS - India`s No. 1 Healthcare brand and WHISPER - India`s leading Feminine Hygiene brand (in value terms). The discussion on financial performance of the Company is elaborated in the Directors Report.
CONTINGENT LIABILITY
(i) In respect of Income Tax demands for
which the company has preferred appeals with appropriate authorities - Rs.
285.521 millions (Previous year : Rs.
394.492 millions). The liability is mainly on account of various disallowances
by the Income Tax authorities on which assessee has preferred an appeal. These
are on account of various grounds - primarily on account of advertisement
expenses, tax holiday, etc.
(ii) In respect of Sales Tax matters for
which the company has preferred appeals with appropriate authorities – Rs.
10.779 millions (Previous Year: Rs. 33.279 millions). The liability is in
respect to: classification matters Rs. 0.874 (Previous Year: 0.874 million),
valuation matters Rs. 9.506 millions (Previous Year: 9.506 millions) and
applicability of service tax on testing charges Rs 0.165 million (Previous
Years: 0.165 million) and others Rs. 0.234 million (Previous Year: Rs. 0.234
million). Contingent liability for customs duty is towards the old advance license
matters which are under dispute.
(iii) In respect of Excise, Customs and
Service Tax matters for which the company has preferred appeals with
appropriate authorities Rs. 110.779 million (Previous year: Rs. 33.279 million). The liability is in
respect to: classification matters Rs. 0.874 million (Previous year: Rs. 0.874
million), valuation matters Rs. 9.506 million (Previous year : Rs.9.506 millions) and applicability of
service tax on testing charges Rs. 0.165 million (Previous year : Rs. 0.165
million) and others Rs. 0.234 million (Previous year : Rs. 0.234 million).
Contingent liability for customs duty is towards the old advance license
matters which are under dispute.
(iv) In respect of counter guarantees given
to bank against guarantees given by bank : Rs. 448.420 millions (Previous year
: Rs. 336.155 millions) At the request of the Company, its bankers have issued
guarantees to third parties for performance obligation under various commercial
agreements. The Company has issued counter guarantees to the banks in respect
of these guarantees.
(v) In respect of other claims - Rs.77 00
000 (Previous year: Rs.13 14 000). The Company is a party to various legal
proceedings in the normal course of business.
(vi) Custom duty
liability for probable non fulfillment of export obligation Rs. 44.849 millions
(Previous Year : Rs. 64.465 millions)
Future cash flow
in respect of the above, if any, is determinable only on receipt of Judgement /
decisions pending with the relevant authorities. The company does not expect
the outcome of matters stated above to have a material adverse effect on the
Company’s financial condition, results of operations or cash flows.
b) Estimated
amount of contracts remaining to be executed on capital account (net of
advance) – Rs. 28.959 million (Rs. 2.819 million)
FIXED ASSETS:
·
Land Freehold
·
Land Leasehold
·
Buildings
·
Plant, Machinery and Equipment
·
Furniture and Fixture
·
Office Equipment
·
Moulds and Dies
·
Vehicles Forklifts
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 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 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.54.39 |
|
|
1 |
Rs.87.78 |
|
Euro |
1 |
Rs.71.29 |
INFORMATION DETAILS
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
This score serves as
a reference to assess SC’s credit risk and to set the amount of credit to be extended.
It is calculated from a composite of weighted scores obtained from each of the
major sections of this report. The assessed factors and their relative weights
(as indicated through %) are as follows:
Financial condition (40%) Ownership background (20%) Payment
record (10%)
Credit history (10%) Market trend (10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NB |
NEW BUSINESS |
||
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.