Business
information report
1. Summary Information
|
|
|
Country |
|
|
Company Name |
MERCK LIMITED |
Principal Name 1 |
Mr.
S. N. Talwar |
|
Status |
Good |
Principal Name 2 |
Dr. M. Dziki |
|
|
|
Registration # |
11-013726 |
|
Street Address |
Shiv Sagar Estate 'A', Dr. Annie Besant Road, Worli, Mumbai-400018,
Maharashtra |
||
|
Established Date |
26.04.1967 |
SIC Code |
-- |
|
Telephone# |
91-22-24964855 |
Business Style 1 |
Manufacturer |
|
Fax # |
91-22-24950307 |
Business Style 2 |
Marketing |
|
Homepage |
Product Name 1 |
Vitamin B-Complex |
|
|
# of employees |
970 (Approximately) |
Product Name 2 |
Vitamin B1+B2+B3+B5+B6+B12 |
|
Paid up capital |
Rs. 166,000,000/- |
Product Name 3 |
Vitamin E |
|
Shareholders |
Promoter and
Promoter Group – 51.80% Public
Shareholding – 48.20% |
Banking |
Canara Bank |
|
Public Limited Corp. |
Yes |
Business Period |
45 years |
|
IPO |
Yes |
International Ins. |
- |
|
Public Enterprise |
Yes |
Rating |
Aa (72) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Holding
Company |
Germany |
Merck KGaA |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
2,912,700,000 |
Current Liabilities |
647,600,000 |
|
Inventories |
1,130,900,000 |
Long-term Liabilities |
0,000 |
|
Fixed Assets |
715,000,000 |
Other Liabilities |
247,800,000 |
|
Deferred Assets |
0,000 |
Total Liabilities |
895,400,000 |
|
Invest& other Assets |
237,600,000 |
Retained Earnings |
3,934,800,000 |
|
|
|
Net Worth |
4,100,800,000 |
|
Total Assets |
4,996,200,000 |
Total Liab. & Equity |
4,996,200,000 |
|
Total Assets (Previous Year) |
4,299,800,000 |
|
|
|
P/L Statement as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Sales |
5,575,700,000 |
Net Profit |
636,800,000 |
|
Sales(Previous yr) |
5,090,800,000 |
Net Profit(Prev.yr) |
631,800,000 |
MIRA
INFORM REPORT
|
Report Date : |
03.05.2012 |
IDENTIFICATION DETAILS
|
Name : |
MERCK
LIMITED |
|
|
|
|
Formerly Known
As : |
E MERCK INDIA LIMITED |
|
|
|
|
Registered
Office : |
Shiv Sagar Estate 'A', |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.12.2011 |
|
|
|
|
Date of
Incorporation : |
26.04.1967 |
|
|
|
|
Com. Reg. No.: |
11-013726 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 166.000 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L99999MH1967PLC013726 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUME03379F |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACE2616F |
|
|
|
|
Legal Form : |
A public limited liability
company. The company’s shares are listed on the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturing
and Marketing of Bulk Drugs, Reagents, Injections, Syrups/Powders and
Tablets/Capsules. |
|
|
|
|
No. of Employees
: |
970 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (72) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 16400000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well
established and reputed company having fine track. The company is a
subsidiary of The company can
be considered good for any normal business dealings. It can be
regarded as a promising business partner in a medium to long-run. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – 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 |
LOCATIONS
|
Registered Office : |
Shiv Sagar Estate 'A', Dr. Annie Besant Road, Worli, Mumbai-400018, Maharashtra,
India |
|
Tel. No.: |
91-22-24964855 / 24964856 / 56609000 |
|
Fax No.: |
91-22-24950307/ 24950354 / 24954590 / 0354 / 0307 / 24936046 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1 : |
Plot No. 11/1, Usgaon, Ponda-403407, |
|
|
|
|
Factory 2 : |
Plot Nos. 1 and 1A, MIDC Estate, Taloja, Panvel, District Raigad –
410208 Maharashtra |
DIRECTORS
AS ON 31.12.2011
|
Name : |
Mr.
S. N. Talwar |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Dr.
M. Dziki |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr.
H. C. H. Bhabha |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. E. A. Kshirsagar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K. Shivkumar |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr.
R. L. Shenoy |
|
Designation : |
Director |
|
Qualification : |
B. Tech |
|
Previous Employment : |
Project Manager- Jainex Limited |
|
|
|
|
Name : |
Mr. T. Kneen |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. P. H.
Pimplikar |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr.
H. U. Shenoy |
|
Designation : |
Company
Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2012
|
Category of
Shareholder |
No. of Shares |
% of No. of
Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
(2) Foreign |
|
|
|
Bodies Corporate |
8,599,224 |
51.80 |
|
|
8,599,224 |
51.80 |
|
Total shareholding of Promoter and Promoter Group (A) |
8,599,224 |
51.80 |
|
|
|
|
|
(1) Institutions |
|
|
|
|
|
5.48 |
|
|
|
0.01 |
|
Insurance Companies |
1,887,149 |
11.37 |
|
Foreign Institutional Investors |
776,126 |
4.68 |
|
|
3,574,428 |
21.53 |
|
|
|
|
|
Bodies Corporate |
521,997 |
3.14 |
|
Individuals |
|
|
|
|
|
18.88 |
|
Individual shareholders holding nominal share capital in excess of Rs.
0.100 million |
680,886 |
4.10 |
|
Any Others (Specify) |
89,534 |
0.54 |
|
Non Resident Indians |
88,405 |
0.53 |
|
Trusts |
1,129 |
0.01 |
|
|
|
26.66 |
|
Total Public shareholding (B) |
8,000,158 |
48.20 |
|
Total (A)+(B) |
16,599,382 |
100.00 |
|
|
- |
- |
|
(1) Promoter and Promoter Group |
- |
- |
|
(2) Public |
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
16,599,382 |
- |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing
and Marketing of Bulk Drugs, Reagents, Injections, Syrups/Powders and
Tablets/Capsules. |
||||||||||||||||
|
|
|
||||||||||||||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.12.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Bulk
Drugs |
Tones |
597.0 |
549.100 |
|
Reagents
/ Chemicals |
Tones |
-- |
17.800 $ |
|
Injections
/ Nasal Drops |
Kilo-Ltre |
450.0 |
584.2 $ |
|
Syrups
/ Powders / Ointments |
Tones |
-- |
4597.3 $ |
|
Tablets
/ Capsules |
No. millions |
400.0 |
2115.3 $ |
@ As certified by
the management, on which auditors have placed reliance, being a technical
matter.
$ Includes quantities manufactured by others
on loan licences.
NOTES:
(a)
Production under “Bulk Drugs” includes items
manufactured for captive consumption.
(b)
Production includes promotional samples.
(c)
“Reagents” is inclusive of repacked items.
(d)
Opening and Closing Stocks and Turnover of Vitamins
under “Bulk Drugs” include Vitamin derivatives.
(e)
Under the liberalised policy of the Government vide
Notification No. S-O-477 (E) dated 25 July 1991 and as amended vide Press
Release Note No. 4 of 1994 series dated 25 October 1994, Bulk Drugs and
Formulations included in above are exempted from licensing procedures under the
Industries (Development and Regulation) Act, 1951.
(f)
Installed capacities are on an annual basis as at
year end.
(g)
Quantities of closing stock of goods mentioned
above are after adjustments of excess/shortage upon physical stock counts, free
samples, giveaways under the Company’s bonus schemes and write offs.
GENERAL INFORMATION
|
No. of Employees : |
970
(Approximately) |
|
|
|
|
Bankers : |
·
Canara Bank ·
Deutsche Bank AG ·
ICICI Bank Limited ·
HDFC Bank Limited |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
BSR and Company Chartered
Accountants |
|
|
|
|
Holding Company : |
·
Merck KGaA, Germany |
|
|
|
|
Associates : |
·
Chemitra GmbH, Germany ·
Emedia Export Company mbh, Germany ·
Merck Internationale Beteiligungen GmbH, Germany |
|
|
|
|
Fellow Subsidiaries : |
·
Merck Limited, Thailand ·
Merck Patent GmbH, Germany ·
Merck Pharmaceutical (HK) Limited, Hong Kong ·
Merck Pte. Limited, Singapore ·
Merck S.A., France ·
Merck Santé S.A.S., France ·
Merck Sdn Bhd, Malaysia ·
Merck Serono S.A., Switzerland ·
Merck Specialities Private Limited, India ·
Merck Schuchardt, Germany ·
Merck KGaA, Rep Office in Vietnam ·
Millipore (India) Private Limited, India ·
P.T. Merck Indonesia, Indonesia ·
Seven Seas Limited, United Kingdom |
|
|
|
|
Other Related Companies : |
·
EMD Chemicals Inc., USA ·
Merck and Cie., Switzerland ·
Merck (Private) Limited, Pakistan ·
Merck Chemicals (Shanghai) Company Limited, China ·
Merck Consumer Health Care Holding GmbH, Germany ·
Merck Inc., Philippines ·
Merck KGaA and Company Werk Spittal, Austria ·
Merck Limited, Japan ·
Merck Limited, South Korea |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
18000000 |
Equity Shares |
Rs.10/- each |
Rs. 180.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
16599382 |
Equity Shares |
Rs.10/- each |
Rs. 166.000
Millions |
|
|
|
|
|
Notes:
Out of the above
— 127,820 (2010:
127,820) Equity Shares of Rs. 10 each have been allotted as fully paid-up pursuant
to a contract for consideration having been received otherwise than in cash.
— 5,370,000 (2010:
5,370,000) Equity Shares of Rs. 10 each have been allotted as fully paid-up
Bonus Shares, by capitalising Rs. 38.3 million from General Reserve and Rs.
15.4 million from Securities Premium Account.
— 8,599,224 (2010:
8,599,224) Equity Shares of Rs. 10 each are held by Merck KGaA, Germany,
through its subsidiaries.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2011 |
31.12.2010 |
31.12.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
166.000 |
166.000 |
166.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
3934.800 |
3298.200 |
4506.900 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
4100.800 |
3464.200 |
4672.900 |
|
|
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 |
8.400 |
0.000 |
21.200 |
|
|
|
|
|
|
|
|
TOTAL |
4109.200 |
3464.200 |
4694.100 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
715.000 |
492.700 |
628.200 |
|
|
Capital work-in-progress |
10.200 |
19.700 |
12.100 |
|
|
|
|
|
|
|
|
INVESTMENT |
227.400 |
201.800 |
238.200 |
|
|
DEFERREX TAX ASSETS |
0.000 |
34.600 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1130.900
|
611.200 |
584.900 |
|
|
Sundry Debtors |
622.300
|
560.800 |
438.100
|
|
|
Cash & Bank Balances |
1132.800
|
1427.700 |
3246.400
|
|
|
Other Current Assets |
0.000
|
0.000 |
0.000
|
|
|
Loans & Advances |
1157.600
|
951.300 |
533.700
|
|
Total
Current Assets |
4043.600
|
3551.000 |
4803.100 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
580.300
|
542.500 |
351.600
|
|
|
Other Current Liabilities |
67.300
|
67.300 |
74.600
|
|
|
Provisions |
239.400
|
225.800 |
561.300
|
|
Total
Current Liabilities |
887.000
|
835.600 |
987.500 |
|
|
Net Current Assets |
3156.600
|
2715.400 |
3815.600
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
4109.200 |
3464.200 |
4694.100 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.12.2011 |
31.12.2010 |
31.12.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
5575.700 |
5090.800 |
4731.100 |
|
|
|
Other Income |
488.800 |
433.700 |
432.100 |
|
|
|
TOTAL (A) |
6064.500 |
5524.500 |
5163.200 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material Cost |
2427.800 |
2078.700 |
2060.900 |
|
|
|
Personnel Expenses |
812.700 |
684.600 |
570.200 |
|
|
|
Operating and Other Expenses |
1931.200 |
1589.600 |
1492.200 |
|
|
|
Impairment loss (reversal) / charge |
(142.800) |
142.800 |
0.000 |
|
|
|
TOTAL (B) |
5028.900 |
4495.700 |
4123.300 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1035.600 |
1028.800 |
1039.900 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
0.200 |
0.700 |
0.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1035.400 |
1028.100 |
1039.600 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
79.500 |
71.000 |
75.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
955.900 |
957.100 |
964.500 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
319.100 |
(325.300) |
309.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
636.800 |
631.800 |
654.800 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
36.300 |
1306.500 |
1366.700 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend |
0.000 |
1576.900 |
332.000 |
|
|
|
Dividend Tax |
0.000 |
261.900 |
56.400 |
|
|
|
Transfer to General Reserve |
0.000 |
63.200 |
326.600 |
|
|
BALANCE CARRIED
TO THE B/S |
673.100 |
36.300 |
1306.500 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of Goods on F. O. B Basis |
538.900 |
468.800 |
522.200 |
|
|
|
Indenting commission |
1.500 |
1.200 |
1.100 |
|
|
|
Others (Recoveries of SAP expenses, freight, insurance, etc.) |
31.100 |
41.900 |
23.500 |
|
|
TOTAL EARNINGS |
571.500 |
511.900 |
546.800 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
640.400 |
427.700 |
438.000 |
|
|
|
Finished Goods |
757.200 |
460.500 |
279.200 |
|
|
|
Components, Stores and Spares Parts |
1.100 |
2.400 |
2.200 |
|
|
|
Capital Goods |
31.800 |
22.400 |
3.900 |
|
|
TOTAL IMPORTS |
1430.500 |
913.000 |
723.300 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
38.40 |
38.10 |
39.00 |
|
QUARTERLY RESULTS
|
PARTICULARS |
31.03.2012 |
|
|
1st
Quarter |
|
Net Sales |
1372.280 |
|
Total Expenditure |
1300.210 |
|
PBIDT (Excl OI) |
72.070 |
|
Other Income |
134.240 |
|
Operating Profit |
206.310 |
|
Interest |
0.060 |
|
Exceptional Items |
0.000 |
|
PBDT |
206.250 |
|
Depreciation |
20.920 |
|
Profit Before Tax |
185.330 |
|
Tax |
61.400 |
|
Provisions and contingencies |
0.000 |
|
Profit After Tax |
123.930 |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
123.930 |
KEY RATIOS
|
PARTICULARS |
|
31.12.2011 |
31.12.2010 |
31.12.2009 |
|
PAT / Total Income |
(%) |
10.50
|
11.44 |
12.68
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
17.14
|
18.80 |
20.39
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
20.09
|
23.47 |
17.76
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.23
|
0.28 |
0.21
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.22
|
0.24 |
0.21
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.56
|
4.25 |
4.86
|
LOCAL AGENCY FURTHER INFORMATION
|
Check List by Info Agents |
Available in Report (Yes / No) |
|
1. Year of Establishment |
Yes |
|
2. Locality of the firm |
Yes |
|
3. Constructions 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 |
Yes |
|
21. Market information |
------ |
|
22. Litigations that the firm / promoter involved |
------ |
|
23. Banking Details |
Yes |
|
24. Banking facility details |
No |
|
25. Conduct of the banking account |
------ |
|
26. Buyer visit details |
------ |
|
27. Financials, if provided |
No |
|
28. Incorporation details, if applicable |
Yes |
|
29. Last accounts filed at ROC |
Yes |
|
30. Major Shareholders, if available |
No |
OPERATIONS:
The operational working
of the Company, in detail, is discussed in the Management Discussion and
Analysis Report forming part of this Report. The turnover of the Company showed
an increase of 9.5% over the turnover achieved in the previous year. As against
Rs. 5,090.8 millions achieved in the year 2010, the turnover of the Company in
2011 was Rs. 5,575.7 millions. While the Pharmaceuticals segment showed an
increase in the turnover of 7.2%, the Chemicals segment showed an increase of
15.4% compared to the respective turnover of the segments in the preceding
year.
The Profit After
Tax for the year was Rs. 636.8 millions as against Rs. 631.8 millions. in 2010,
showing a marginal increase of 0.8%.
The F.O.B. value
of exports of the Company during the year 2011 was Rs. 538.9 millions as
against Rs. 468.8 millions achieved in the preceding year.
The Company had
debited in the previous year Rs. 142.8 millions to the profit and loss account
towards the impairment loss on the assets used for the manufacture of Oxynex at
its Goa plant. Though the Company had curtailed production of Oxynex during the
year, the plant was utilized to manufacture Vitamin E for part of the year.
Taking into account the approved utilization of the Oxynex plant and its value
in use, an amount of Rs. 142.8 millions debited to profit and loss account in
the previous year was reversed and credited to profit and loss account.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
The Indian economy
according to the advance estimates of the central statistical office will
expand at 6.9%, the slowest pace in the last 9 years barring the crisis year
2008-09, owing to a slow-down in manufacturing, contraction in mining and
deceleration in farm output over the last year’s base. While agricultural
growth could be less than 2.5% as against 7% registered last year, the
industrial sector might grow at 3.8% as against the growth registered last year
of 7.2%. The new year with favourable global economic indicators and also good
signs with the increased amount of Foreign Direct Investment flow should bring
hopes for revival of the growth momentum. Inflation which was spiralling last
year has shown a downward trend and is under control.
The
Pharmaceuticals segment is the Company’s main segment and accounts for nearly
70% of the revenue, while the Company’s Chemicals segment accounts for the
balance 30%. Both the segments are subjected to various regulatory controls and
monitoring. The working of both the segments is influenced by regulatory
restrictions, most important of them being the pharmaceuticals pricing
legislation which for decades has been the main hurdle in improving the working
results of the Company. The Company also faced during the year, heavy burden on
account of higher input costs caused by higher inflation and adverse foreign
exchange fluctuations and also regulatory hassles on registration and licensing
of products. The following table gives, in brief, the financial indicators on
the Company’s working in the backdrop of many challenges and difficulties.
|
Key Indicators |
31.03.2011 |
31.03.2010 |
|
Turnover (Rs. millions) |
5,575.700 |
5090.800 |
|
Profit After Tax (Rs. millions) |
636.800 |
631.800 |
|
Profit After Tax to Turnover (%) |
11.400 |
12.400 |
|
Sales to Fixed
Assets employed (ratio) |
7.700 |
9.900 |
|
Current Assets (ratio) |
4.600 |
4.200 |
|
Return on capital employed (%) |
15.500 |
18.200 |
|
Book value of shares (Rs.) |
247.000 |
208.700 |
As you are aware,
last year the Company debited the impairment loss relating to the Oxynex plant assets,
arising on account of the lower projected cash flows and realization, caused by
the projected fall in demand for the product. In the current year, due to the
initiatives taken by the management, the plant was put to alternative use,
thereby improving the cash flows. With such improvement on projected cash flow,
the impairment loss debited last year was reversed.
The profit after
tax during the year of Rs. 636.8 millions was impacted by higher input costs,
overheads on promotion and personnel costs.
The performance of
the two business segments, in brief, is given below:
PHARMACEUTICALS
SEGMENT:
The segment has
two business divisions i.e. Merck Serono and Consumer Health Care. The
performance of the divisions is given below:
MERCK SERONO
Merck Serono with
a registered turnover of Rs. 3,442.6 millions accounting for 62% of the
Company’s turnover is the largest division in the Company. It grew by 5% over
the previous year, with the bulk of the sales from Vitaminbased formulations,
which have been in the market for many decades. Legacy brands like Neurobion,
Polybion, Evion and Livogen are well entrenched. The Company continues to
derive equity from these brands through various line extensions introduced over
the years. Livogen, an iron supplement, the number 1 prescribed haematinic in
India, grew by approximately 20% in 2011.
The
Cardiometabolic segment which houses Carbophage – a Metformin and an original
discovery from the Merck Group registered a growth of 70%. Concor, a beta-blocker which has been
doing very well grew by 29% in 2011.
The new products
and line extensions introduced over the past couple of years, have continued to
perform well –
noteworthy among
them being brands like Neurobion Plus, Ostopolybion, Tolflex, Ostonate, Ecobion,
Met- Neurobion P capsules and Livogen injection.
The robust field
team of Merck Serono works with doctors across regions, both in urban and rural
areas. This helps in penetrating the market, thereby sustaining the growth of
mature brands as well as in introducing new products.
In 2012, with an
objective to augment further growth, the business has been reorganised to
enable greater customer focus. Creating newer markets in rural areas, focusing
on Women’s Health and re-energising their legacy brands are the core areas. A
special task force has also been created to focus on new product introductions.
With these measures, the division aims to reach newer growth prospects and
scale greater heights.
CONSUMER HEALTH
CARE DIVISION:
The turnover of
the division for the year 2011 was Rs. 452.1 millions as against the turnover
of Rs. 348.8 millions achieved in 2010, registering a good growth of 30%. This
division specializes in Over The Counter (OTC) pharmaceutical products and
focuses on its core global health themes – (a) Cold and Cough, (b) Every
Day Health Protection, (c) Women’s and Children’s Health (d) Mobility.
The division is growing on the strength of well known brands and the long
standing trust, the consumers place in them with respect to their quality and
efficacy.
In the largest
therapeutic segment of the division, Cold and Cough, its iconic brand, Nasivion, the division’s first
advertised brand, has grown in 2011 by 38% over last year and has also got the
distinction of being the No. 1 Doctor prescribed brand in its segment. The
division also deals with other categories such as Oral Rehydration Salt, Skin
care etc. The brands Electrobion and
Evion Cream are doing
well in the market for a long time.
The year 2011 also
saw the homecoming of its heritage brand Seven Seas Cod-liver oil which is
being successfully integrated in the portfolio. The division will be able to
participate in the largest OTC segment of Vitamin Mineral Supplements (VMS).
With these two
strategic brands the division aims to build a robust business and continue its
efforts to create Umbrella Brands for leveraging potential of the larger
sub-categories of Cough Cold Allergy (CCA) and VMS. The division is committed
to creating a robust pipeline of new products, which will be developed through
the efforts of
both local and
global R and D for larger participation in its health themes.
PHARMA EXPORTS:
Exports in the
Pharma segment contribute about 5% to the total Pharma turnover. Since the Merck
Group is present in most countries around the world, there was little scope to
expand the Pharma exports business. Despite these challenges, with the team’s
keen business acumen and expertise, the export turnover grew by 13% over the
previous year. The major export markets for the Company are Sri Lanka, Nepal
and Myanmar. Substantial progress has been made in exports to African and
Middle Eastern countries in the last few years. The Company now exports its
pharmaceutical formulations to Lebanon, Kenya, Tanzania and Zambia as well.
PRODUCTION:
The
Pharmaceuticals products of both the divisions are manufactured partly at the
in-house manufacturing facility at Goa and through outsourced units. Proper
care and supervision is exercised on the outsourced units to ensure the quality
and efficacy of the products. The production capacity at Goa is fully utilized.
CHEMICALS SEGMENT:
The Chemicals
segment grew in terms of turnover by 15.4% in 2011. The turnover of the segment
in 2011 was Rs. 1,681.0 millions as against Rs. 1,457.1 millions achieved in
2010. The Chemicals segment is operating through two divisions: i.e. Pharm Chem
Solutions and Performance Materials.
PHARM CHEM
SOLUTIONS:
The Pharm Chem
Solutions division offers wide range of traded products and a few bulk drugs
mostly manufactured in the in-house manufacturing facility of the Company
located in Goa. The traded products of the division mainly are falling in the
category of Excipients for Pharmaceutical Formulation and Process Chemicals for
the BioPharm Industry. The main bulk drugs which are manufactured at Goa are
Vitamin E, Thiamine DiSulphide (TDS) and Guaiazulene. While Guaiazulene and TDS
production is exported fully, Vitamin E is marketed predominantly in the local
market. Vitamin E is also being exported to Pakistan for the last few years.
While the demand
for Vitamin E has been growing, the Company has been exploring strategies to
increase the production capacity. Thus in 2011, the Company got the Export
Oriented Unit status of the Oxynex plant cancelled. This step enabled it to
start manufacturing Vitamin E at the Oxynex plant, thus supplementing the
output of the Vitamin plant and utilizing the capacity rendered idle by the
fall in the demand for Oxynex.
For 2012, in view
of the substantial escalation in the demand for Oxynex, it may become necessary
for the division to augment the capacity of the existing plant manufacturing
Vitamin E.
On account of the
expansion of the plant manufacturing TDS last year, the production capacity has
gone up by 35% The plant is operating at full capacity. The plant for the
manufacture of Guaiazulene set up in the year 1991 has been meeting the
requirements of the export market in Japan.
With the excellent
marketing drive which has been reflected in the results of 2011, the year 2012
should be a good year in terms of turnover and profitability for the division.
PERFORMANCE
MATERIALS:
The Performance
Materials division consists of two business lines i.e. Pigments and Cosmetics
actives. This division recorded a growth of 7% over the previous year. The
Pigments business was affected in the year 2011 mainly on account of the fall
in the automotive coatings caused by the declining production in the automotive
industry. Also, the competition from the local manufacturers as well as the
international companies impacted the performance of the division. The division
is making efforts to improve on the turnover and at the same time exploring the
avenues for newer uses of the products in various spheres of the industrial
activities.
The division also
deals with the Cosmetics actives product, Oxynex. The plant to manufacture
Oxynex was set up in 2009. In the year 2010, because of the fall in the demand
for the product and consequent reduced cash flow, the plant was impaired by an
amount of Rs. 142.8 millions.
In the year 2011,
this plant was used for part of the year, to manufacture Vitamin E. As per the
current trends, the demand for the product is increasing which may improve the
working of the Oxynex plant.
OUTLOOK:
While both the
Pharmaceuticals and Chemicals divisions continue to strive to improve on the
performance, the current economic and political indicators will have their
impact on the working of the Company. With the management focussing on enhancing
the shareholders values, I am sure in the coming year, the Company will
continue to improve its performance.
FIXED ASSETS
- Software
- Building and Flats
- Plant and Machinery
- Furniture and Fixture
- Office Equipment
- Electrical Fitting
- Vehicles
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER AND THREE MONTHS ENDED ON 31 MARCH, 2012
(Rs. in millions)
|
Sr. No. |
Particular |
3 Months Ended |
|
|
|
31.03.2012 (Unaudited) |
|
1. |
Net Sales/Income
from Operations |
1372.276 |
|
|
|
|
|
2. |
Expenditure |
|
|
|
a) (Increase) / Decrease in Stock in Trade |
(70.304) |
|
|
b) Purchase of Traded Goods |
279.104 |
|
|
c) Employees Cost |
227.680 |
|
|
d) Depreciation |
20.917 |
|
|
e) Other Expenditure |
464.213 |
|
|
f) Cost of Material Consumed |
399.519 |
|
|
g) Total |
1321.129 |
|
|
|
|
|
3. |
Profit From Operations before Other Income, Interest and
Exceptional Items (1-2) |
51.147 |
|
|
|
|
|
4. |
Other Income |
134.240 |
|
|
|
|
|
5. |
Profit Before Interest and Exceptional Items (3+4) |
185.387 |
|
|
|
|
|
6. |
Interest |
0.061 |
|
|
|
|
|
7. |
Profit After Interest but before Exceptional Items (5-6) |
185.326 |
|
|
|
|
|
8. |
Exceptional Items |
-- |
|
|
|
|
|
9. |
Profit from Ordinary Activities before Tax (7+8) |
185.326 |
|
|
|
|
|
10. |
Tax Expense |
61.396 |
|
|
|
|
|
11. |
Net Profit from Ordinary Activities after Tax (9-10) |
123.930 |
|
|
|
|
|
12. |
Extraordinary Item (net of expense) |
-- |
|
|
|
|
|
13. |
Net Profit for the period (11-12) |
123.930 |
|
|
|
|
|
14. |
Paid-up Equity Share Capital (Face Value of Rs.10/- Each) |
165.994 |
|
|
|
|
|
15. |
Reserves Excluding Revaluation Reserve |
-- |
|
|
|
|
|
16. |
Basic
and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised |
|
|
|
a) Basic and diluted EPS before extraordinary items |
7.47 |
|
|
b) Basic and diluted EPS after extraordinary items |
7.47 |
|
|
|
|
|
17. |
Public
Shareholding |
|
|
|
-Number of Shares |
8000158 |
|
|
- Percentage of Shareholding |
48.2 |
|
|
|
|
|
18. |
Promoters
and Promoter Group Shareholding |
|
|
|
a)
Pledged/Encumbered |
|
|
|
- Number of Shares |
Nil |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
Nil |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
Nil |
|
|
|
|
|
|
b)
Non Encumbered |
|
|
|
- Number of Shares |
8599224 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of Promoter and Promoter Group) |
-- |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
51.8 |
|
|
|
|
|
|
Tax expenses consist of Current Tax Deferred Tax |
63.000 (1.604) |
|
|
|
|
|
B |
INVESTOR COMPLAINTS Pending at the begging of the quarter Received during the quarter Disposed of during the quarter Remaining unresolved at the end of the quarter |
Nil 1 1 Nil |
SEGMENT WISE
REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. in millions)
|
Sl. No. |
|
Particulars |
3 Months Ended |
|
|
31.03.2012 |
||
|
|
(Unaudited) |
||
|
1 |
|
Segment Revenue |
|
|
|
|
|
|
|
|
|
a) Pharmaceuticals |
881.130 |
|
|
|
b) Chemicals |
531.530 |
|
|
|
|
|
|
|
|
Total |
1412.660 |
|
|
|
|
|
|
|
|
Less : Inter Segment Revenue (Net of Excise) |
40.384 |
|
|
|
|
|
|
|
|
Net Sales / Income
from Operation |
1372.276 |
|
|
|
|
|
|
2 |
|
Segment Results |
|
|
|
|
|
|
|
|
|
a) Pharmaceuticals |
71.397 |
|
|
|
b) Chemicals |
71.943 |
|
|
|
|
|
|
|
|
Total |
143.340 |
|
|
|
|
|
|
|
|
Less :Interest |
0.061 |
|
|
|
|
|
|
|
|
Less : Other Unallocable Expenditure |
(42.047) |
|
|
|
Net of Unallocable Income |
|
|
|
|
|
|
|
|
|
Total Profit Before
Tax |
185.326 |
|
|
|
|
|
|
3 |
|
Capital Employed |
|
|
|
|
|
|
|
|
|
a) Pharmaceuticals |
901.200 |
|
|
|
b) Chemicals |
1277.112 |
|
|
|
c) Unallocated |
2046.448 |
|
|
|
|
|
|
|
|
Total |
4224.760 |
NOTES:
1. The above results haven been reviewed by the Audit Committee and
thereafter approved by the Board of Directors at its meeting held on 20th
April, 2012. The above results were subjected to a “Limited Review” by the
Statutory Auditors.
2. Figures for the previous quarter / year have been re-grouped /
re-arranged wherever necessary.
3. Figures of the preceding 3 months ended 31st December, 2011
are the balancing figures between audited figures in respect of the full
previous financial year and the published year to date figures up to the third
quarter of the previous financial year. Also the figures up to the end of the
third quarter were only reviewed and not subjected to audit.
4. During the previous year, the Company had reversed provision for
impairment loss of Rs. 142.800 Millions on a cash generating unit. This has
been considered in the results of the Chemicals segment.
PRESS RELEASE
MERCK REVISITS ITS LONGSTANDING ASSOCIATION WITH
RABINDRANATH TAGORE AND INSTITUTES THE MERCK-TAGORE AWARD
·
Award to recognise contribution for
promoting cultural exchange between India and Germany
·
Dr. Martin Kämpchen, novelist and
translator of Tagore’s works from Bengali to German, chosen as first recipient
of the Merck-Tagore Award
Kolkata, January 17, 2012 – Merck, the global
pharmaceutical and chemical company, having its headquarters in Darmstadt,
Germany, today announced institution of the Merck-Tagore Award to recognise
special contributions for promoting cultural exchange between India and Germany.
Dr. Martin Kämpchen, a writer, translator of Tagore’s works and a German
teacher, was declared winner of the first award.
The association between Merck and Tagore, the
internationally renowned Indian poet, philosopher and musician, goes back a
long way when one of its family members, Elisabeth Wolff-Merck, translated the
play ‘Chitra’ by Rabindranath Tagore into German. Mr. Jon Baumhauer (Elisabeth Wolff-Merck’s grandson), Chairman of the
Executive Board of E. Merck KG and Chairman of the Family Board, together
with Dr. Karl-Ludwig Kley, Chairman of
the Executive Board, Merck KGaA, were present in Kolkata to honour this
relationship. They will also travel to Santiniketan to further explore the
roots of their Indian connections.
Moreover,
Kurt Wolff (husband of Elisabeth Wolff-Merck) owned the Kurt Wolff Verlag,
which started publishing Tagore’s works in 1914; making the writer known in
Germany. In all, Kurt Wolff brought out over twenty Tagore volumes within
eleven years (1914-1925) selling more than one million copies. Kurt Wolff’s
publishing house worked on an eight-volume edition which was launched in 1921
and is well stocked in the antiquarian bookshops even today. Back then, though
this edition created a furore about Tagore’s works, only a fraction of the
poet’s works became accessible to the public.
Dr. Kley stated
in Kolkata, “We are privileged to institute this award in the memory of the
first Asian Nobel Laureate in order to promote cultural appreciation between our
two countries. Merck is proud of its heritage that spans nearly three and half
centuries. Our interest and contribution to cultural and liberal arts could be
best illustrated through our sponsorship of a full-fledged professional
orchestra, the Deutsche Philharmonie Merck.”
Dr. Marek Dziki, Managing Director, Merck Limited,
India added, “The Deutsche
Philharmonie Merck recently performed across seven cities in India as part of
the ‘Programme Opening’ of “Germany and India 2011-2012: Infinite Opportunities”,
which commemorated six decades of diplomatic relations between India and
Germany. The growing appreciation of western classical music amongst Indian
music lovers enabled a harmonious celebration our bilateral relations. I
believe that the Merck-Tagore title will be a significant step in fostering
greater cultural exchange between Germany and India.”
“Standing
on this soil amongst Tagore’s people, we feel proud to pay a special tribute to
this great polymath,” commented Mr.
Baumhauer while reminiscing on the Merck-Tagore relationship. “My
maternal grandfather, Kurt Wolff had just embarked upon a career as a publisher
when his friend from London recommended Tagore to him. It was then when he
heard about Tagore’s early publications in 1913 and translated Tagore’s initial
poems to German. It was in the course of this association that Tagore was also
awarded the Nobel Prize for Literature in 1913.”
‘SEVENSEAS® ORIGINAL’ ALL SET TO SAIL UNDER MERCK IN
INDIA
• The purest form of cod liver oil and leader in the
vitamin segment in over 100 countries
• Focus on enhancing immunity of Indian consumers
• Bollywood
actress, Raveena Tandon, signed on as brand ambassador
Mumbai, January 05, 2012 – The Indian Consumer
Healthcare division of Merck KGaA, the world’s oldest pharmaceutical and
chemical company, is set to make a strong impact in the Indian nutritional
supplement market with SevenSeaS Original Pure Vitamin Rich Cod Liver Oil;
currently the leader in the vitamin segment in over 100 countries. SevenSeaS
Original is the purest form of cod liver oil; retaining all its natural
nutrients, and one of the most trusted natural sources of vitamins A and D.
Remarked
Dr. Marek Dziki, Managing Director, Merck Limited, “Many of us have grown up on
SevenSeaS Original Pure Vitamin Rich Cod Liver Oil. It is a highly trusted
brand with a rich heritage of over 75 years and is deeply entrenched in the
memories of the Indian consumer for the past six decades. We are delighted that
Merck is bringing the goodness of this time-tested, natural source of key
nutrients and vitamins to the Indian population.”
SevenSeaS Original contains more natural
vitamin A and vitamin D per unit weight than any other common food. It also
comprises two unique active ingredients, DHA and EPA, which are most potent in
promoting health and defending the body against infections and diseases.
“The
cod liver oil market is presently growing at a rate of nearly 18%. Research
indicates that the Indian consumer is well aware of the importance of building
immunity in order to keep pace with today’s hectic world. Erratic food habits
and deficient nutrition compromise ones resistance to disease and ailments.
SevenSeaS Original Pure Vitamin Rich Cod Liver Oil addresses this inadequacy in
nutrition and helps in building immunity levels,” stated Mr. Ashish Bhatt,
Business Head, Consumer Healthcare, Merck Limited.
What
makes SevenSeaS Original unique is its patented technology called Ocean Gold.
This high-end method for extracting the purest form of cod liver oil ensures
that none of the oil’s original nutrient values are lost in the extraction
process. Every SevenSeaS Original pack carries the Ocean Gold Ultra Pure™ mark
of assurance.
Actress
Raveena Tandon, brand ambassador for SevenSeaS Original Pure Vitamin Rich Cod
Liver Oil in the Indian market, spoke at the welcome event: “Children today are
at a higher risk of getting drained both physically and mentally due to
increased pressures to perform at schools, sports and other myriad activities
in which they participate. In this daily race; food and essential nutrients
take a back seat. Where I, too, want my kids to excel; I constantly fret over
whether they are getting adequate nutrition. SevenSeaS Original Pure Vitamin
Rich Cod Liver Oil is just the solution as it covers all the areas of their
development. Children are finicky about what they eat and I feel that natural
supplements like SevenSeaS Original will only help in further building up their
immunity.”
About
Consumer Healthcare
Merck
launched the Consumer Healthcare division in India in 2007. With leading brands
like Nasivion®, Evion® and Maxepa®, amongst others, it is rapidly growing at
18% per annum (IMS ORG Oct 2011). The division boasts of a portfolio consisting
of leading brands that cater to various therapeutic segments, namely, everyday
health protection, nasal decongestants and women and children’s health care.
About
Merck
Merck
is a global pharmaceutical and chemical company with total revenues of € 9.3
billion in 2010, a history that began in 1668, and a future shaped by
approximately 40,000 employees in 67 countries. Its success is characterized by
innovations from entrepreneurial employees. Merck's operating activities come
under the umbrella of Merck KGaA, in which the Merck family holds an
approximately 70% interest and shareholders own the remaining approximately
30%. In 1917 the U.S. subsidiary Merck & Co. was expropriated and has been
an independent company ever since.
Merck in India Merck Limited (formerly E. Merck Limited) was set up in India as the
first Merck subsidiary in Asia in 1967. The Merck Group has been operating in
India through appointed agents since a little before the turn of the twentieth
century. The Company operates both its Pharmaceuticals and Chemicals businesses
in the country. Merck was also the first Merck Group Company to go public in
the year 1981. The Merck Group now holds 51.8% of the share capital in Merck
Limited, while the remaining 48.2% is traded on the Bombay Stock Exchange
Limited and National Stock Exchange of India Limited. Merck Specialities
Private Limited, the wholly owned Indian subsidiary of Merck KGaA, was
incorporated in 2005.
Following
the acquisition of Millipore, a leading life science company in USA, in 2010;
the resulting entity, Merck Millipore is now a leader in the field of life
sciences. Prior to that, in 2009, Merck acquired Bangalore Genei to become one
of the leading bioscience entities in India. In 2010 (January – December), the
turnover of Merck Limited totaled Rs. 5090.8 million.
Merck,
through its manufacturing facility at Goa, is the only manufacturer of
Guaiazulene, Thiamine Disulfide (TDS) and Oxynex ST, in addition to being the
largest manufacturer of Vitamin E in India. Merck in India also produces
injectables and soft gel capsules; its Dehydrated Culture Media plant is the
first for Merck outside Germany.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is or
was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 52.93 |
|
|
1 |
Rs. 85.85 |
|
Euro |
1 |
Rs. 69.94 |
INFORMATION DETAILS
|
Information Gathered
by : |
-- |
|
|
|
|
Report Prepared
by : |
DPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
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.