MIRA
INFORM REPORT
|
Report Date : |
01.06.2012 |
IDENTIFICATION DETAILS
|
Name : |
DABUR INDIA LIMITED |
|
|
|
|
Formerly Known
As : |
DABUR (DR. S K BURMAN) PRIVATE LIMITED |
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|
Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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|
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|
Date of
Incorporation : |
16.09.1975 |
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|
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|
Com. Reg. No.: |
007908 |
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|
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|
Capital
Investment / Paid-up Capital : |
Rs. 1740.700 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24230DL1975PLC007908 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELD01285E |
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|
Legal Form : |
Public Limited Liability Company. The company’s shares are listed on
the Stock Exchanges. |
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|
Line of Business
: |
Manufacturing of herbal healthcare and personal care, food,
pharmaceuticals, ayurvedic medicines, veterinary products and cosmetics. |
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|
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|
No. of Employees
: |
5300 (Approximately) |
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 44000000 |
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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 fourth largest FMCG Company in It is a well-established and reputed company having fine track.
Financial position of the company appears to be sound. The company’s products
are well known in the market. Trade relations are reported as fair. Business
is active. Payments are reported to be regular 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) |
|
|
A1 |
A1 |
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|
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|
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INFORMATION PARTED BY
|
Registered Office : |
|
|
Tel. No.: |
91-11-23253488 |
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Website : |
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Corporate Office : |
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Tel. No.: |
91-120 – 3982000 (30 Lines) |
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Fax No.: |
91-120 – 4374935 / 3001000 (30 Lines) |
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E-Mail : |
LOCATIONS
As on 31.03.2011
|
Name : |
Dr. Anand Burman |
|
Designation : |
Chairman |
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|
|
|
Name : |
Mr. Amit Burman |
|
Designation : |
Vice Chairman |
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|
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|
Name : |
Mr. Pradip Burman |
|
Designation : |
Director |
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|
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|
Name : |
Mr. Mohit Burman |
|
Designation : |
Director |
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|
Name : |
Mr. P. D. Narang |
|
Designation : |
Director |
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|
Name : |
Mr. Sunil Duggal |
|
Designation : |
Director |
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|
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|
Name : |
Mr. R. C. Bhargava |
|
Designation : |
Director |
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|
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|
Name : |
Mr. P. N. Vijay |
|
Designation : |
Director |
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|
Name : |
Dr. S. Narayan |
|
Designation : |
Director |
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Name : |
Mr. Albert Wiseman Paterson |
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Designation : |
Director |
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|
Name : |
Mr. Analjit Singh |
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Designation : |
Director |
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|
Name : |
Dr. Ajay Dua |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. A. K. Jain |
|
Designation : |
General
Manager (Finance) And Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2012
|
Category of Shareholders |
No. of Shares |
% of Holdings |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
2178000 |
0.13 |
|
|
1,194,160,850 |
68.55 |
|
|
1,196,438,850 |
68.68 |
|
|
|
|
|
|
300,000 |
0.02 |
|
|
300,000 |
0.02 |
|
Total
shareholding of Promoter and Promoter Group (A) |
1,196,738,850 |
68.70 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
18,762,520 |
1.08 |
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|
56,238,419 |
3.23 |
|
|
37,274,147 |
2.14 |
|
|
320,883,652 |
18.42 |
|
|
433,158,738 |
24.86 |
|
|
|
|
|
|
11,619,923 |
0.67 |
|
|
|
|
|
|
75,971,528 |
4.36 |
|
|
17,604,268 |
1.01 |
|
|
7,007,547 |
0.40 |
|
|
6,000 |
- |
|
|
6,155,909 |
0.35 |
|
|
657,906 |
0.04 |
|
|
187,732 |
0.01 |
|
|
112,203,266 |
6.44 |
|
Total Public
shareholding (B) |
545,362,004 |
31.30 |
|
Total (A)+(B) |
1,740,100,854 |
100.00 |
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
|
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|
Total
(A)+(B)+(C) |
1,740,100,854 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 million BUSINESS DETAILS
|
Line of Business : |
Manufacturing of herbal healthcare and personal care, food,
pharmaceuticals, ayurvedic medicines, veterinary products and cosmetics. |
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Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Hair Oils |
Kilo-ltrs |
108419 |
31075 |
|
Chyawanprash |
Tonnes |
59927 |
17804 |
|
Honey |
Tonnes |
9341 |
6479 |
|
Tooth Powder and Paste |
Tonnes |
52882 |
28276 |
|
Hajmola |
Tonnes |
12239 |
5496 |
|
Asava – Arishta |
Kilo-ltrs |
11403 |
8100 |
|
Fruits,Nector and Drinks |
Kilo-ltrs |
35700 |
22470 |
|
Vegetable Pastes |
Mt |
4800 |
1258 |
GENERAL INFORMATION
|
No. of Employees : |
5300 Approximately |
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Bankers : |
·
Punjab National Bank ·
Standard Chartered Bank ·
The ·
The Royal Bank of ·
Citibank NA ·
HDFC Bank Limited ·
IDBI Bank Limited |
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Facilities : |
NOTES: Maximum amount of commercial papers outstanding during the year Rs.
2000.000 millions (previous year Rs. 400.000 millions) |
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
M/s G. Basu and Company Chartered Accountants |
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|
|
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Internal Auditors : |
Price Waterhouse Coopers Private Limited |
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Subsidiaries : |
·
Dabur International Limited 100% held by Dabur
India Limited ·
H and B Stores Limited 100% held by Dabur India
Limited (Domestic Wholly Owned Subsidiary) ·
Dermoviva Skin Essentials Inc 2.21% held by Dabur
India Limited (Balance stake held by Dabur International Limited) (Foreign
wholly Owned Subsidiary) ·
Asian Consumercare Private Limited, ·
Dabur Nepal Private Limited, ·
Dabur ·
Dabur ( ·
Dabur International Limited, UAE - (Foreign
Wholly Owned Subsidiary) ·
Weikfield International (UAE) LLC - (Foreign Subsidiary) ·
African Consumercare Limited, ·
Asian Consumercare Pakistan Private Limited, ·
Naturelle LLC, UAE - (Foreign Wholly Owned
Subsidiary) ·
Dabur ·
Hobi Kozmetik - (Foreign Wholly Owned Subsidiary) ·
Zeki Plastik - (Foreign Wholly Owned Subsidiary) ·
Ra Pazarlama - (Foreign Wholly Owned Subsidiary) ·
Namaste Laboratories - (Foreign Wholly Owned
Subsidiary) ·
Hair Rejuvenation and Revitalization Nigeria
Limited - (Foreign Wholly Owned Subsidiary) ·
Healing Hair Lab International ·
Urban Lab International |
|
|
|
|
Joint venture /Partnership : |
·
Forum 1 Aviation Limited. ·
Balsara International |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2000000000 |
Equity Shares |
Rs. 1/- each |
Rs. 2000.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1740723798 |
Equity Shares |
Rs. 1/- each |
Rs. 1740.700
millions |
|
|
|
|
|
NOTES :
1.
Of the above shares, 46927956 shares have been allotted
as fully paid up pursuant to scheme of amalgamation/merger without payment
being received in cash which includes issue during the year 138462 number of
shares of Re.1 each in favour of minority shareholders of erstwhile Fem care
Pharma Limited on account of consideration of their merger in previous year.
2.
During the year the authorized capital of the
company has been increased by Rs.550.000 millions.
3.
Of the above shares, issued and subscribed,
10002170 (previous year 8610721) shares have been allotted upto 31st March, 11
under Employees Stock Option Scheme.
4.
Of the above shares 1391449 (previous year
2509581), shares have been allotted during the year and 19627230 (previous year
1745965) shares are outstanding under Employees Stock Option Scheme.
5.
Of the above 1626079642 (previous year 755717743),
shares have been allotted as fully paid bonus shares without consideration
money being received in cash, which includes issue of Rs. 870.362 millions
(previous year NIL) shares during the year against capitalization of free
reserve.
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 |
1740.700 |
869.000 |
865.100 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
9270.900 |
6624.800 |
6516.900 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
11011.600 |
7493.800 |
7382.000 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
175.700 |
242.700 |
106.500 |
|
|
2] Unsecured Loans |
2398.700 |
857.000 |
1307.200 |
|
|
TOTAL BORROWING |
2574.400 |
1099.700 |
1413.700 |
|
|
DEFERRED TAX LIABILITIES |
174.000 |
119.500 |
69.500 |
|
|
|
|
|
|
|
|
TOTAL |
13760.000 |
8713.000 |
8865.200 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
4975.600 |
4509.500 |
3083.200 |
|
|
Capital work-in-progress |
119.200 |
233.100 |
517.100 |
|
|
|
|
|
|
|
|
INVESTMENT |
5192.300 |
3485.100 |
4369.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
4605.800
|
2984.400 |
2617.200 |
|
|
Sundry Debtors |
2024.600
|
1304.800 |
1123.600 |
|
|
Cash & Bank Balances |
1924.100
|
1639.100 |
1436.900 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
4405.300
|
3251.200 |
2272.800 |
|
Total
Current Assets |
12959.800
|
9179.500 |
7450.500 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1935.100
|
988.700 |
1077.600 |
|
|
Other Current Liabilities |
3027.700
|
3331.900 |
2234.500 |
|
|
Provisions |
5353.600
|
4401.000 |
3328.900 |
|
Total
Current Liabilities |
10316.400
|
8721.600 |
6641.000 |
|
|
Net Current Assets |
2643.400
|
457.900 |
809.500 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
829.500 |
27.400 |
86.400 |
|
|
|
|
|
|
|
|
TOTAL |
13760.000 |
8713.000 |
8865.200 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
32643.700 |
28559.600 |
23961.600 |
|
|
|
Other Income |
494.600 |
416.400 |
430.600 |
|
|
|
TOTAL (A) |
33138.300 |
28976.000 |
24392.200 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials |
16506.500 |
13739.300 |
12224.300 |
|
|
|
Manufacturing Expenses |
889.100 |
761.800 |
707.600 |
|
|
|
Payments to and provisions for Employees |
2308.400 |
2123.400 |
1673.200 |
|
|
|
Selling and Administrative Expenses |
6799.100 |
6570.600 |
5090.100 |
|
|
|
Miscellaneous Expenditure Written off |
166.000 |
56.600 |
39.400 |
|
|
|
TOTAL (B) |
26669.100 |
23251.700 |
19734.600 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
6469.200 |
5724.300 |
4657.600 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
129.300 |
134.900 |
133.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
6339.900 |
5589.400 |
4524.200 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
377.300 |
319.100 |
274.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
5962.600 |
5270.300 |
4250.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1248.500 |
938.900 |
521.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
4714.100 |
4331.400 |
3728.400 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
5269.100 |
4289.400 |
3232.300 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend |
870.400 |
649.800 |
648.800 |
|
|
|
Proposed Final Dividend |
1131.500 |
1086.200 |
865.100 |
|
|
|
Final Dividend (for earlier year) |
1.500 |
0.000 |
0.000 |
|
|
|
Corporate Tax on Interim Dividend |
144.600 |
110.400 |
110.300 |
|
|
|
Corporate Tax on Proposed Dividend |
183.600 |
184.600 |
147.000 |
|
|
|
Excess Corporate Tax on dividend of
earlier year provided written back |
(4.000) |
0.000 |
0.000 |
|
|
|
Transfer to Capital Reserve |
13.400 |
20.700 |
0.100 |
|
|
|
Transfer to General Reserve |
500.000 |
1300.000 |
900.000 |
|
|
BALANCE CARRIED
TO THE B/S |
7142.200 |
5269.100 |
4289.400 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export sales at FOB |
1316.900 |
1237.300 |
1098.700 |
|
|
|
Interest Income |
24.700 |
0.000 |
0.000 |
|
|
TOTAL EARNINGS |
1341.600 |
1237.300 |
1098.700 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
134.000 |
188.200 |
160.300 |
|
|
|
Stores & Spares |
2.800 |
1.800 |
4.700 |
|
|
|
Capital Goods |
63.100 |
41.300 |
63.500 |
|
|
TOTAL IMPORTS |
199.900 |
231.300 |
228.500 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
2.71 |
2.50 |
4.31 |
|
|
|
Diluted |
2.69 |
2.49 |
4.29 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
31.03.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Sales Turnover |
8481.700 |
8808.200 |
10523.700 |
9830.900 |
|
Total Expenditure |
7314.200 |
7067.200 |
8697.300 |
8182.200 |
|
PBIDT (Excl
OI) |
1167.500 |
1741.000 |
1826.400 |
1648.700 |
|
Other Income |
145.000 |
126.500 |
88.600 |
173.400 |
|
Operating
Profit |
1312.500 |
1867.500 |
1915.000 |
1822.100 |
|
Interest |
65.600 |
13.800 |
62.900 |
(1.300) |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
1246.900 |
1853.700 |
1852.100 |
1823.400 |
|
Depreciation |
91.800 |
91.600 |
100.300 |
173.100 |
|
Profit
Before Tax |
1155.100 |
1762.100 |
1751.800 |
1650.300 |
|
Tax |
244.100 |
375.500 |
287.900 |
330.300 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Reported PAT |
911.000 |
1386.600 |
1463.900 |
1320.000 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
911.000 |
1386.600 |
1463.900 |
1320.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
14.23
|
14.95 |
15.29 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
18.27
|
18.45 |
17.74 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
33.24
|
38.50 |
40.35 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.54
|
0.70 |
0.58 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.17
|
1.31 |
1.09 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.26
|
1.05 |
1.12 |
LOCAL AGENCY FURTHER INFORMATION
|
Check list by info
Agents |
Available in Report (Yes/ No) |
|
Year of Establishment |
Yes |
|
Locality of the Firm |
Yes |
|
Constitution of the Firm |
Yes |
|
Premises details |
No |
|
Type of Business |
Yes |
|
Line of Business |
Yes |
|
Promoter’s Background |
Yes |
|
No. of Employees |
Yes |
|
Name of Person Contacted |
No |
|
Designation of Contact person |
No |
|
Turnover of Firm for last three years |
Yes |
|
Profitability for last three years |
Yes |
|
Reasons for variation <> 20% |
------------- |
|
Estimation for coming financial year |
No |
|
Capital in the business |
Yes |
|
Details of sister concerns |
Yes |
|
Major Suppliers |
No |
|
Major Customers |
No |
|
Payments Terms |
No |
|
Export/ Imports Details (If applicable) |
No |
|
Market Information |
------------ |
|
Litigations that the firm/ Promoters Involved in |
--------------- |
|
Banking details |
Yes |
|
Banking Facility Details |
Yes |
|
Conduct of the Banking Account |
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|
Buyer visit details |
---------- |
|
Financials, if provided |
Yes |
|
Incorporation details is applicable |
Yes |
|
Last Accounts filed at ROC |
Yes |
|
Major Shareholders, if available |
No |
OPERATIONS
At Subject, they recognize
operations as an important source of competitive advantage. A strong back-end
support in Procurement, Manufacturing, Research and Development and Human
Resource Management has been key to subject’s sturdy performance through the
2010-11 fiscal. A large number of initiatives was rolled out by the Company to
improve productivity through effective application of technology and
advancement in manufacturing processes, besides adoption of lower cost energy
options.
FINANCIAL REVIEW (ON A CONSOLIDATED BASIS)
During 2010-11
fiscal, the consolidated sales of the Company increased by 20.3%, primarily
driven by volume growth of 12.7% and acquisitions contributing to 5.1% of
growth. While sales growth remained strong the Company faced headwinds with
respect to inflation and cost pressures. The Company dealt with these
challenges and was able to maintain its margins in a highly inflationary
environment through calibrated price increases and efficient management of
costs.
EBITDA margin of
the Company was stable at 19.9% vis-ŕ-vis 19.8% in FY2009-10. The increase in
rate of
Minimum Alternate
Tax (MAT) led to the effective tax rate increasing from 16.7% to 19.6%.
The Profit After
Tax of the Company increased by 13.4% during 2010-11 with the Profit After Tax (PAT)
margin going down slightly mainly on account of increased taxation.
AMALGAMATION OF
FEM CARE PHARMA LIMITED WITH THE COMPANY
During the year,
amalgamation of Fem Care Pharma Limited (FEM) with the Company was completed on
18th June, 2010 (being effective date) upon filing of the Order of Hon’ble
MANAGEMENT
DISCUSSION AND ANALYSIS
Nevertheless,
economic growth in the industrialized nations was below average compared with
the performance seen after previous economic slumps, with only Asia,
particularly
The Indian economy
continues to be on a strong growth trajectory with CSO (Central Statistics
Office) estimating a growth of 8.6% in real GDP for the 2010-11 fiscal as
compared to a 8.0% growth for 2009-10 fiscal. The agriculture, forestry and
fishing sector witnessed a surge in fiscal 2010-11, with CSO estimating growth
of 5.4% as compared to 0.4% for fiscal 2009-10. The manufacturing sector
continued to post good growth with CSO estimates at 8.8% for both fiscal
2009-10 and 2010-11. The services sector was the out performer with CSO
estimating growth at 9.6% for fiscal 2010-11 although this was slightly less
than 10.1% for fiscal 2009-10.
Per capita income
in real terms (at 2004-05 prices) during fiscal 2010-11 witnessed an uptick,
growing by 6.7% in fiscal 2010-11 as compared to 6.1% in fiscal 2009-10.
Indian economy is
vitally linked with the monsoon because of its large agricultural sector and
huge requirement of water resources. A large part of the country gets more than
75% of the annual rainfall during the four months, June to September (Monsoon
season). The production of food-grains has a high correlation with the amount
and
distribution of
monsoon rainfall over the country. Further, the generation of hydro-electric
power from monsoon rain water is a clean energy source. The 2010-11 fiscal
witnessed more than its fair share of rainfall, which was at 102% of the long
term average for the season as compared to deficient monsoons last year. This
augured well for foodgrains’ production, which increased by 8.2% to 235.9
million tonnes in 2010-11 from Although GDP growth remained strong, high levels
of inflation throughout the year played spoilsport, oscillating within a band
of 11% to 8%. This led to several rounds of interest rate hikes by the RBI
(Reserve Bank of
All round high
inflation in commodities and manufactured products led to significant increase
in input costs across the sectors. In addition, crude prices moved up, which also
had an impact on transportation costs, hydro carbon linked inputs and packaging
costs. Overall, FY 2010-11 was a very challenging year in terms of input cost
inflation and managing material costs.
FMCG SECTOR IN
Steady growth in the Indian economy is being driven by strong domestic
consumption, economic reforms, private
entrepreneurship and global linkages.
Domestic consumption is on the rise due to increasing disposable
incomes, growing employment opportunities and favourable demographics, such as
young population (median age of 26 years), growing middle class and changes in
consumption and life style. As per a recent study conducted by Booz and
Company, FMCG sector is
expected to grow in the range of 12% to 17% upto 2020 and would touch a market
size between of 4,000 to 6,200 billion i.e. US$ 90 billion to US$ 138 billion.
Current market size is estimated at 1,463 billion i.e. US$33 billion
The billion plus
Indian population, with 50% of population below 25 years and 65% below 35 years
of age, offers substantial opportunity going ahead. Robust economic growth
would translate into higher per capita incomes, which are expected to increase
by around 3 times to $3,231 by 2020 from $1,017 in 2009. In addition, evolution
in consumption patterns in rural
The following
factors are driving consumption in both rural and urban markets:
·
Upgradation of consumption from unorganized to organized and
from unbranded to branded products
·
Increasing per capita consumption, which is
relatively very low as compared to some of the other emerging markets
·
Improving penetration of consumer products,
resulting in increased usage across population strata
·
Change in consumption habits with consumers moving
up the ladder and demanding products suiting their needs and evolving lifestyle
The urban theme
would be played by rising share of nuclear households, increasing proportion of
women in working population, growing size of the Indian middle class and
changes in lifestyle and consumption patterns.
In fact, the
growth of the Indian middle class and economic growth are inter dependant as
shown in this circle : rising incomes leading to higher consumption levels,
which in turn drive robust economic growth, translating into more employment
opportunities and subsequently higher wages.
The modern trade
channel is another factor contributing to growth of the FMCG industry as it is
driving consumption by providing convenience, visibility, better shopping
experience and variety. This is also an important channel for marketers to have
direct consumer interaction and interface. Modern trade is growing at a fast
clip and is expected to increase its share of revenues as it expands.
On the rural side,
there has been visible evolution in rural consumption patterns, with increasing
demand for quality and branded goods, though pricing and affordability
continues to remain an important parameter. Increasing consumption is being
witnessed in categories such as soaps, shampoos, oral care and laundry. Greater
media penetration in rural areas is also acting as a key influencer on
lifestyle and consumption patterns.
The very
attractiveness of the Indian FMCG market is leading to aggressive competition
among the key players. Fiscal 2010-11 saw a wave of disruptive competition
happening in a few categories of the sector, with significant increase in
advertising and promotional spends and attempts to win over consumers by
offering greater value for every rupee spent.
For the 2010-11
fiscal, Indian FMCG sector continued on a strong growth trajectory, with the
Non-Food and OTC segment of the industry growing by 15% (AC Nielsen MAT Mar
2011), driven by opening up of rural markets, increased income in rural
areas, growing urbanization, along with evolving consumer lifestyles and buying
behaviour.
An increasingly
tougher input costs environment led to price increases across categories by
various FMCG players. Last year, a benign input cost environment had resulted
in expansion in gross margins, which in turn led to various players increasing
their advertisement and promotional spends. During fiscal 2010-11, the input costs
spiraled while the advertisement and promotional spends did not witness any
significant decline due to heightened competitive activity, and this put
pressure on margins. At Subject, they managed inflation in the commodity basket
by effecting calibrated price increases, strategic stocking and prudent buying.
On account of these, they managed to protect the margins and reported strong
growth of 21% in the operating profits.
PERFORMANCE OVERVIEW
Subject completed another year of strong growth, both in revenue and
profits. The highlights of the Company’s performance in fiscal 2010-11 on a
consolidated basis are:
·
Consolidated Sales increased to 41099.000 millions
in fiscal 2010-11 from 34158.000 millions in fiscal 2009-10 registering a
growth of 20.3%
·
Earnings before interest, taxes, depreciation and
amortization (EBITDA) increased to 8198.000 millions in 2010-11, from 6773.000
millions in fiscal 2009-10, registering growth of 21.0%
·
Consolidated profits after tax (PAT) went up to
5686.000 millions in fiscal 2010-11 from 5013.000 millions, going up by 13.4%
Earnings per share (EPS) went up to 3.25 in fiscal 2010-11 from 2.89 in fiscal
2009-10
The Company has
maintained a strong and consistent growth trajectory in consolidated sales
during the last 10 years, with growth accelerating in the last 5 years to CAGR
of 18.5%. The Company’s sales crossed the 40000.000 millions mark during fiscal
2010-11.
Sales growth
during 2010-11 continued to be significantly volume-driven, with volumes
accounting for more than three fourths of the total revenue growth. The
challenging input cost environment led to calibrated price increases across
categories.
On the operational
front, the Company managed to maintain EBITDA margins which were stable at
19.9% in 2010-11 as compared to 19.8% of sales in 2009-10. Aggressive marketing
initiatives led to gain in market share in
categories like
Chyawanprash, Glucose, Toothpastes and Toothpowders.
CONTINGENT LIABILITIES:
Disputed liabilities and claims against the company including claims
raised by fiscal authorities (e.g. Sales Tax , Income Tax, Excise etc.),
pending in appeal/court for which no reliable estimate can be made of the
amount of the obligation or which are remotely poised for crystallization are
not provided for in accounts but disclosed in notes to accounts.
However, present
obligation as a result of past event with possibility of outflow of resources,
when reliably estimable, is recognized in accounts.
FIXED ASSETS
Tangibles
·
·
Buildings, Roads and Culverts
·
Plant and Machinery
·
Computer
·
Vehicles
·
Furniture and Fixture
·
Intangibles
·
Computer Software
·
Trade Marks and Patent
WEB DETAILS
Profile
Subject is an Indian consumer goods company with interests in Hair Care, Oral Care, Health Care,
Skin Care, Home Care and Foods. From its humble beginnings in the bylanes of Calcutta way
back in 1884 as an Ayurvedic medicines company, Subject has come a long way today to become a leading consumer
products manufacturer in India. For the
past 125 years, they have been dedicated to providing nature-based solutions
for a healthy and holistic lifestyle.
Through the comprehensive range of products, they touch the lives of all consumers,
in all age groups, across all social boundaries. And this legacy has helped
them develop a bond of trust with the consumers.
NEWS
PRESS REALEASE
NEW U, DABURS BEAUTY RETAIL BUSINESS ANNOUNCES
EXPANSION
Friday, May 18, 2012
- Opens
two flagship high-street stores in
- New stores located at Khan Market and Defence Colony
Spread over a combined area of close to 1,200 sq ft, the two stores have the largest range of beauty care products from across the globe under a single roof. The outlets offer a unique, interactive layout, highly trained staff, personal approach, quality products and through-the-year bargains and deals.
Inaugurating the new stores, Dabur India Limited Group Director Mr. P. D. Narang said: “New U is a place where women and girls of all ages have fun shopping because it offers all the beauty products they love and more, under a single roof. The addition of these new stores to our expanding retail network further establishes New U as the market leader and the prefered beauty retailer in the country.”
The New U network today has 44 stores spread across North
and
The New U stores will offer the discerning consumer a wide selection of brands
in categories as diverse as cosmetics, skin care, hair care, fragrances, herbal
care, beauty implements and accessories, gifts and confectionery, and men and
children toiletries. The store’s ‘tone and manner’ has been created to provide
customers with a ‘total shopping experience’; an organized and modern interior
offering a relaxed, soothing ambience for customers to discover a new world of
beauty in their own time.
Besides the range of beauty products from
About New U
New U is a chain of beauty and lifestyle retail stores operated by HandB Stores Limited, a wholly-owned subsidiary of Dabur India Limited. At New U, we welcome you to a world of beauty and lifestyle in a modern, inviting and interactive retail environment, for a never-before shopping experience.
DABUR Q4 2011-12 REVENUE UP 23% TO RS 1,363.58 CRORE
Monday, April 30,
2012
- Consolidated Net Profit for the quarter rises 16% To Rs 170.52 Crore
- Dabur crosses Billion Dollar Turnover Mark in 2011-12
Riding on strong growth across its key categories like Hair Oils, Health Supplements, Foods and Home Care, Dabur India Limited ended the fourth quarter of 2011-12 financial year with a 23% surge in consolidated Net Sales to Rs 136.358 Millions consolidated Net sales stood at Rs 110.822 Millions in the same quarter last year. The Company braved the macro headwinds like rising input costs and business disruptions in certain geographies to deliver another quarter of strong growth in profits. Subject’s Net Profit for the fourth quarter marked a 16% growth to Rs 17.052 Millions, as against Rs 14.701 Millions a year earlier.
BILLION DOLLAR
Subject surpassed the Billion-Dollar Turnover mark during the 2011-12 fiscal to end the year with Net Sales of Rs 528.317 Millions, up 29.5% from Rs 407.743 millions a year earlier. Net Profit for the 2011-12 fiscal marked a 13.4% growth to Rs 64.489 Millions, up from Rs 56.858 Millions a year earlier. The 2011-12 fiscal also saw Dabur's Foods Division cross the Rs 5000.000 Millions turnover mark.
“The strong performance has been delivered in a year that saw the external environment become more challenging with every passing quarter. We have managed our business dynamically through a combination of judicious price increases and greater focus on cost efficiencies to deliver profitable and sustainable growth. Our performance during the year has been satisfying with significant growth across all our key brands. Dabur has also laid the foundation for strong and profitable growth in the future with an array of new product initiatives that have met with good success and would further blossom over the next couple of years,” Dabur India Limited Chief Executive Officer Mr. Sunil Duggal said.
Category Growths
The Hair Oils business for Dabur – led by strong growth in both Amla and Vatika brands and the introduction of Dabur Almond Hair Oil – ended the fourth quarter with a 20.2% growth, while the Digestives business reported a 19.4% growth. Dabur's Skin Care business ended the period with an 17.6% gain. The Foods business – riding on continued demand for its packaged juices – ended the fourth quarter with a 30.4% growth. The Shampoo category reported a strong resurgence and closed the quarter with a 16.8% growth while the Health Supplements category ended the quarter with a near 11% growth.
The quarter saw Dabur expand its presence in the
professional grooming space with the launch of
Dabur’s International
Business continues to be a key growth driver, recording a robust 45.8% growth
during the fourth quarter of the current fiscal, led by strong
performance in GCC,
Dividend
The Board of Directors today recommended a final Dividend of 75%, which brings the
total Dividend for the year to 130%. “Continuing with our payout policy, the
Board has proposed a final dividend of Re. 0.75 per share, aggregating to Rs.
15.186 Millions ,” Dabur India Limited
Chairman Dr. Anand Burman said.
DABUR
Tuesday, January 31,
2012
- Consolidated Net Profit for the quarter rises 12% To Rs 17.282 Millions
Riding on strong volume-driven growth across its key categories like Hair Oils, Health Supplements, Foods, Toothpaste and Home Care, Subject ended the third quarter of 2011-12 financial year with a 34.5% surge in consolidated Net Sales to Rs 1,452.68 Crore. Consolidated Net sales stood at Rs 1,079.97 Crore in the same quarter last year. While the macro-economic environment continues to be challenging, a host of consumer connect initiatives and higher investment behind our brands helped Dabur drive demand for its products in both urban and rural markets. The Company ended the third quarter of the current fiscal with a near 12% rise in consolidated Net Profit to Rs 172.82 Crore, up from Rs 154.44 Crore a year earlier.
Net Profit for the nine-month period ending December 31, 2011 marked a 12.52% growth to Rs 474.38 Crore, while Net Sales for the same period was up 32.01% at Rs 3,919.59 Crore.
“Despite the Inflationary pressures and macro-economic challenges, we have managed our business dynamically through a combination of judicious price increases and greater focus on cost efficiencies. We have also enhanced investment behind our brands, which will yield dividend in months to come. As a result, our EBITDA marked a 12% growth during the quarter. Going forward too, we will continue to pursue an aggressive and profitable growth strategy,” Subject Chief Executive Officer Mr. Sunil Duggal said.
Category Growths
The Hair Oils business for Dabur – led by strong growth in
both Amla and Vatika brands – ended the third quarter with a 22% growth, while
the Digestives business reported a 19.3% growth. Dabur's Home Care category –
riding on sustained demand for Odonil air fresheners – ended the period with an
18% gain. The Foods business reported a 17.4% growth during the quarter. Dabur
continued to be among the fastest growing toothpaste companies in
Dabur’s International Business continues to be a key growth
driver, recording a robust 37.8% growth (excluding acquisitions) during the
third quarter of the current fiscal, led by strong performance in GCC,
About Dabur India
Limited
Subject is one of
INDIAN ECONOMY
- Macro economic variables under pressure during FY12 with deceleration in GDP to 6.9%
- Inflationary pressures persisted during the year, though there was some relief towards the end of the year, but the environment is still challenging
- RBI has resorted to rate cuts and reduced repo rate from 8.5% to 8%, which bodes well for the overall economic growth
Performance Overview
: Q4 and FY12
- Fiscal 2011‐12 has been a landmark year with Dabur surpassing Rs 50000.000 Millions revenue mark
- Consolidated Sales grew by 23.0% in Q4FY12 to Rs. 1,363.6 crore and by 29.6% in FY12 to Rs. 5,283.2 528.320 Millions
- Consolidated PAT increased by 16.0% to Rs. 170.5 crore during Q4FY12 and by 13.4% in FY12 to reach Rs. 64.490 Millions
- EBITDA increased by 13.7% during FY12 in spite of high input cost pressure.
- Domestic sales growth continued on the upward trajectory, growing by 19.2% in Q4FY12 and by 14.7% during FY12
- International Business (ex acquisitions) reported growth of 45.8% during Q4FY12 and 27.2% during FY12
- Final Dividend of Re. 0.75 per share proposed taking total dividend for the year to 130% i.e. Rs. 1.30 per share.
FINANCIAL
PERFORMANCE: Q4 FY2011-12
- Consolidated Sales grew by 23.0% during Q4FY12.
- Sales growth was a combination of volume growth and price increases and marginal translation gains
- Volume growth was at 12.4%
- EBITDA increased by 4 2% while EBITDA margin was lower at 17.8% in Q4FY12 v/s 21.1% in Q4FY11
- Material costs were at 50.2% of sales vis-a-vis 47% in Q4FY11
- Adpro during the quarter increased to 13.4% as compared to 11.5% in previous year
- Consolidated PAT reported growth of 16.0%
- This was despite severe input cost pressure and increase in advertising and promotional costs
FINANCIAL
PERFORMANCE: FY2011-12
- Consolidated Sales grew strongly at 29 6% driven by a mix of acquisitions, price increases and volumes
- Excluding acquisitions, sales grew by 18%
- EBITDA increased by 13.7% during FY12
- EBITDA reported growth of 13.4%. However the EBIDTA margin declined to 17.9% in FY12 v/s 20.4% in FY11
- Material costs increased to 50.8% of sales in FY12 v/s 47.5% last year
- Consolidated PAT grew by 13.4% in spited of high inflation and adverse currency movements
- PAT margin was at 12.2% in FY12 v/s 13.9 % previous year
BUSINESS OVERVIEW
- Domestic business grew by 19 2% during Q4FY12 and by 14 7% in FY12
- International refers to organic business and Namaste and Hobi not included herein 19.2% 14.7% International Business (excl. Hobi and Namaste) grew by 45.8% in Q4FY12 and by 27.2% in FY12. Growth in constant currency terms was at 35.0% for Q4FY12 and 23.2% in FY12
- Hobi and Namaste recorded growth of 22% and 15.6% respectively in Q4FY12
DOMESTIC BUSINESS
OVERVIEW
- Consumer care grew by 14.9% in Q4FY12 and 11.4% in FY12.
- Foods continued on robust growth trajectory, growing by 30.5% in Q4FY12 and by 26.5% in FY12
CONSUMER CARE
BUSINESS
- The largest category, Hair Care witnessed fastest growth at 19.8% in Q4FY12. Shampoo category witnessed revival with growth of 16.8%
- Home Care grew by 18% in Q4 FY12
- Oral Care grew by 7.7%, with toothpastes growing by 8.3% in Q4FY12
- Health Supplements recorded growth of 10.9% during Q4FY12
- Digestives grew at a robust 19.4% in Q4FY12
HEALTH SUPPLEMENTS
- Health Supplements grew by 10.9% in Q4FY12 and by 9.4% in FY12 driven by good growth in Dabur Honey and Chyawanprash
- Dabur Honey reported robust growth across all channels, regions and SKU sizes. Dabur Honey’s proposition on the Stay Young platform aided growth.
- Dabur Glucose was flattish during the quarter and year on account of a weak summer during H1FY12 and extended winters during Q4FY12.
DIGESTIVES
- Digestives grew at a robust 19.4% in Q4FY12 and by 9.9% for FY12
- Hajmola Tablets reported strong growth driven by media initiatives and launch of new variants and SKUs
- Hajmola Candy staged a revival, witnessing good growth in Q4FY12 backed by media initiatives.
OTC AND ETHICALS
- OTC and Ethicals portfolio grew by 13.8% in Q4FY12 and by 8.2% in FY12
- OTC portfolio grew by 11.4% in Q4FY12 and by 9.4% in FY12
- The biggest brand Lal Tail witnessed strong growth
- Honitus franchise including cough syrup and lozenges performed well
- Ethicals portfolio, which witnessed pressure on sales due to distribution realignment in the first half was back on track and grew by 18% in Q4FY12.
- Growth for FY12 was at 5.9%
HAIR OILS
- Hair Oils reported robust growth of 20
2% in Q4FY12 and 21 1% in FY12 driven by 0.2% 21.1% strong volume growth
and price increases
- Amla Hair Oil grew well, inspite of
stiff competition and maintained market share
- Vatika Hair Oils reported p strong
growth during the quarter and fiscal
- Almond Hair Oil ‐ launched in Nov 2011 continues to
receive good consumer response
SHAMPOOS
- Shampoos staged a revival, growing by 16.8% in Q4FY12
- The biggest variant – Henna (Green variant), has been the best performer
- Competitive intensity continues to remain high in the category
- During the year, growth was largely driven by:
- Strengthening proposition on ‘Naturals’ platform
- Advertising focus on Green variant
- Impactful presence on TV through sponsorships
SKIN CARE
- Skin Care grew by 17.6% in Q4FY12 and by 9% in FY12
- Gulabari sales were tepid during the year, primarily on account of low category growth and heightened local competition. However new marketing initiatives planned to drive the brand going forward.
- Fem portfolio grew by 20.6% in Q4FY12 and by 12.5% in FY12. Strong growth witnessed revival post distribution realignment.
ORAL CARE
- Oral Care reported growth of 7.7% in Q4FY12 and 9.4% in FY12
- Toothpastes portfolio grew by 8.3% in Q4FY12 and by 11.1% in FY12, increasing volume market share during the year
- Their premium offerings in toothpastes have done well during the quarter
- Dabur Red Toothpowder grew marginally, witnessing gains in market share
HOME CARE
- Home Care grew at a robust 18.0% in Q4FY12 and by 14.3% in FY12
- The largest brand Odonil witnessed strong growth across formats (blocks, aerosols etc.) and regions. During the year, Odonil crossed Rs. 1000.000 Millions in sales and is now the twelfth brand in Dabur’s Billion Rupee Brand club
- Odomos sales were flattish
- Sanifresh witnessed robust growth on the back of successful restage
FOODS
- Foods crossed the Rs. 500 crore mark during FY12
- Robust growth at 30.4% in Q4FY12 and 26.5% in FY12 with growth across regions and channels
- Both Real and Activ witnessed strong growth momentum
- New
variants launched including
- More extensions and variants planned in both Real and Activ range
INTERNATIONAL
BUSINESS
- International Business (excl. acquisitions) grew by 45.8% in Q4FY12 and by 27.2% in FY12
- Growth in constant currency terms was at 35% for Q4FY12 and 23.2% in FY12, largely driven by volumes
- Key
growth markets -GCC,
- Key growth categories -Shampoos, Hair Cream and Toothpaste
- New product launches include Vatika Styling Hair Gels, skin care range under the Dermoviva brand and new variants of hair oils, shampoos and Hamam Zaith
ACQUISITIONS
UPDATE
Hobi Group
- Hobi posted revenues of Rs. 340.000
Millions in Q4FY12 and Rs. 1400.000 millions for FY12
- Sales grew by 22% in Q4FY12
- Investing strongly behind brands and
portfolio to put the business on a strong growth trajectory
- Hobi products introduced in MENA and
- Hair gel technology leveraged to
introduce Vatika Hair Gels in MENA region
Namaste
Laboratories
- Namaste recorded revenues of Rs.
1370.000 Millions in Q4FY12 and Rs. 547.1 Millions in FY12
- Sales grew by 15.6% in Q4FY12
- Local manufacturing for Namaste
commenced in RAK, UAE
- Aggressive growth plans to tap African
markets and increase market share in the them
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. 56.42 |
|
|
1 |
Rs. 87.37 |
|
Euro |
1 |
Rs. 69.95 |
INFORMATION DETAILS
|
Report Prepared
by : |
ACH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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.