MIRA
INFORM REPORT
|
Report Date : |
08.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
MARICO LIMITED |
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Registered
Office : |
7th Floor, Grande Palladium, 175, |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
13.10.1988 |
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Com. Reg. No.: |
11-049208 |
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Capital
Investment / Paid-up Capital : |
Rs.644.800 Millions |
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CIN No.: [Company Identification
No.] |
L15140MH1988PLC049208 |
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Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturing and |
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No. of Employees
: |
1246 (Approximately), Group (3230) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (68) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum Credit Limit : |
USD 79000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
It is a well-established and a reputed company having fine track. Financial position of the company appears to be sound. Directors are
reported to be experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. 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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
The current downturn
provides an opportunity to push ahead with reforms to accelerate growth, says
the latest India Development Update report released by the World Bank. The
report says that the adverse effects of rupee depreciation are likely to be
offset by the gains in the exports performance due to improved external
competitiveness. Since May this year, the local currency has depreciated
substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.
A stagflation like
situation appears to have arisen as inflation jumped to an eight month high of
6.46 % for the month of September. It is up from 6.10 % in August. Growth
continues to be muted with factory output plunging to 0.6 % in August.
Onion prices have risen nearly 300 % from last September. Vegetables cost
nearly 90 % more than they did last year. Wake up to the economic contribution
of slum dwellers. They contribute more than 7.5 % to the country’s gross
domestic product, according to a recent study conducted in 50 top cities.
136000 estimated
number of jobs created during the second quarter of the current financial year.
50000 estimated number of additional jobs in the field of corporate social
responsibility in the coming years.
The International
Finance Corporation expects to come out with its rupee linked bonds issue
before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple
iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has
been launched in
The Land Acquisition
Act to provide just and fair compensation to farmers will come into force from
January 1 next year, said Rural Development Minister Jairam Ramesh. The Act
replaces a 119 year old registration. The Securities and Exchange Board of
India has approved the trading of currency futures on the Bombay Stock
Exchange. The exchange plans to launch the currency futures platform with
advanced trading technology by the end of November.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
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Rating |
Long term rating: AA+ |
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Rating Explanation |
High degree of safety and very low credit
risk. |
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Date |
16.01.2013 |
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Rating Agency Name |
CRISIL |
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Rating |
Short term rating: A1+ |
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Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
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Date |
16.01.2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED
Management non-cooperative
Tel. No.: 91-22-66480480
LOCATIONS
|
Registered Office/ Corporate
Office : |
7th Floor, Grande Palladium, 175, CST Road, Kalina,
Santacruz (East), Mumbai – 400098, Maharashtra, India |
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Tel. No.: |
91-22-66480480 |
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Fax No.: |
91-22-66490114 |
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E-Mail : |
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Website : |
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Regional Offices : |
Located At: 210-B, Swapanlok Complex, Tel No.: 91-40-27813351/ 55260067 C-10, Dalia Industrial Estate, Modi House, Off. New Link Road, Near
Fun Republic Cinema, Andheri (West), Mumbai – 400058, Maharashtra, India Tel No.: 91-22-26732439-40/ 26732472 Tel No.: 91-33-22470750/ 22477629 North RO : No.5, Tel No.: 91-11-26383370/ 8167/ 8168 |
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Factories : |
Located At : ·
Kanjikode ·
Pondicherry ·
Jalgaon ·
Paonta ·
Dehradun ·
Goa ·
Baddi · Paonta Sahib · Paldhi · Perundurai |
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr. Harsh Mariwala |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. Nikhil Khattau |
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Designation : |
Chairman of Audit Committee |
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Name : |
Mr. Rajeev Bakshi |
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Designation : |
Director |
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Name : |
Mr. Atul Choksey |
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Designation : |
Director |
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Name : |
Mr. Anand Kripalu |
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Designation : |
Director |
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Name : |
Mr. Rajendra Mariwala |
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Designation : |
Director |
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Name : |
Ms. Hema Ravichandran |
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Designation : |
Chairman of Corporate Governance Committee |
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Name : |
Mr. B.S. Nagesh |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mrs. Hemangi Ghag |
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Designation : |
Company Secretary |
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Management Team
: |
|
Name : |
Mr. Harsh Mariwal |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. Saugata Gupta |
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Designation : |
Chief Executive Officer - FMCG |
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Name : |
Mr. Milind Sarwate |
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Designation : |
Group Chief Financial Officer |
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Name : |
Mr. Vijay Subramanian |
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Designation : |
Chief Executive Officer – Kaya |
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Audit Committee : |
|
Name : |
Mr. Nikhil Khattu |
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Designation : |
Chairman |
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Name : |
Mr. Rajendra Mariwala |
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Designation : |
Member |
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Name : |
Ms. Hema Ravichandar |
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Designation : |
Member |
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Name : |
Mr. B.S. Nagesh |
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Designation : |
Member |
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Name : |
Mr. Harsh Mariwala |
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Designation : |
Permanent Invitee |
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Name : |
Mrs. Hemangi Ghag |
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Designation : |
Secretary to the committee |
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Corporate Governance Committee : |
|
Name : |
Ms. Hema Ravichandar |
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Designation : |
Chairperson |
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Name : |
Mr. Rajeev Bakshi |
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Designation : |
Member |
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Name : |
Mr. Anand Kripalu |
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Designation : |
Member |
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Name : |
Mr. Milind Sarwate |
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Designation : |
Secretary to the Committee |
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Name : |
Mr. B.S. Nagesh |
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Designation : |
Member |
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Name : |
Mr. Harsh Mariwala |
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Designation : |
Permanent Invitee |
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Shareholders Committee : |
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Name : |
Mr. Nikhil Khattau |
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Designation : |
Chairman |
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Name : |
Mr. Rajen Mariwala |
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Designation : |
Member |
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Name : |
Mrs. Hemangi Ghag |
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Designation : |
Secretary to the Committee |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 30.09.2013
|
Category of
Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding of
Promoter and Promoter Group |
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375205520 |
58.18 |
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|
8822000 |
1.37 |
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384027520 |
59.55 |
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|
900000 |
0.14 |
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|
900000 |
0.14 |
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Total shareholding
of Promoter and Promoter Group (A) |
384927520 |
59.69 |
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(B) Public
Shareholding |
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|
10709082 |
1.66 |
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|
29935 |
0.00 |
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|
5097132 |
0.79 |
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|
177998113 |
27.60 |
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|
22058823 |
3.42 |
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|
215893085 |
33.48 |
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|
19072714 |
2.96 |
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|
19673829 |
3.05 |
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|
3425066 |
0.53 |
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|
1862785 |
0.29 |
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|
128691 |
0.02 |
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|
1654084 |
0.26 |
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|
80010 |
0.01 |
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|
44034394 |
6.83 |
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Total Public
shareholding (B) |
259927479 |
40.31 |
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Total (A)+(B) |
644854999 |
100.00 |
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(C) Shares held by
Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
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Total (A)+(B)+(C) |
644854999 |
0.00 |
(1)
Indian
Individuals
/ Hindu Undivided Family
Individual
shareholders holding nominal share capital up to Rs. 0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturing and Sale of Consumer Products. |
GENERAL INFORMATION
|
No. of Employees : |
1246 (Approximately) Group (32306) |
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Bankers : |
· Axis Bank Limited · Barclays Bank PLC · Citibank N.A · HDFC Bank Limited · ICICI Bank Limited · Kotak Mahindra Bank Limited · Standard Chartered Bank · State Bank of India · HSBC Limited · DBS Bank Limited · JP Morgan Chase Bank N.A. · Royal Bank of Scotland N.V. · Corporation Limited |
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Facilities : |
(Rs.
In Millions)
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Price Waterhouse Chartered Accountants |
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Cost Auditors : |
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Name : |
Ashwin Solanki and Associates Chartered Accountants |
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Internal Auditors : |
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Name : |
Ernst and Young (w.e.f. April 1, 2012) Chartered Accountants |
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Subsidiary Firm
: |
·
Wind Company. (Through MEL Consumer Care SAE) |
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Others -
Entities in which KMP has significant influence : |
·
The Bombay Oil Private Limited |
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Subsidiary
Companies : |
·
Kaya Limited ·
Marico Bangladesh Limited (MBL) ·
MBL Industries Limited (MBLIL) (Through Marico
Middle East FZE) ·
Marico Middle East FZE (MME) ·
Kaya Middle East FZE (KME) (Through Marico Middle
East FZE) ·
MEL Consumer Care SAE (MELCC) (Through Marico
Middle East FZE) ·
Egyptian American Investment and Industrial
Development Company (EAIIDC) (Through Marico Middle East FZE ) ·
Marico Egypt Industries Company (MEIC) (through
MEL Consumer Care SAE) ·
Marico South Africa Consumer Care (Pty) Limited
(MSACC) ·
Marico South Africa (Pty) Limited (MSA) (Through
Marico South Africa Consumer Care (Pty) Limited) ·
CPF International (Pty) Limited (CPF) (Through
Marico South Africa (Pty) Limited) (upto January 16, 2012) ·
Marico Malaysia Sdn. Bhd. (MMSD) (Through Marico
Middle East FZE) ·
Derma – Rx International Aesthetics Pte. Limited.
(DIAL) (w.e.f May 22, 2010) ·
The DRx Clinic Pte. Limited s(DCPL) (Through
Derma – Rx International Aesthetics Pte. Limited ) (w.e.f May 25, 2010) ·
The DRx Medispa Pte. Limited (DMSPL) (Through
Derma – Rx International Aesthetics Pte. Limited) (w.e.f May 25, 2010) ·
DRx Investments Pte. Limited. (DIPL) (Through
Derma – Rx International Aesthetics Pte. Limited ) (w.e.f May 25, 2010) ·
DRX Meditech Pte Limited – (With effect from May
25, 2010 and upto February 28, 2011 – merged with Derma- Rx International
Aesthetics Pte Limited with effect from March 1, 2011) ·
DRx Aesthetics Sdn. Bhd. (DASB) (Through Derma –
Rx International Aesthetics Pte. Limited ) (w.e.f May 25, 2010) ·
International Consumer Products Corporation (ICP)
(w.e.f February 18, 2011) ·
Beaute Cosmetique Societe Par Actions (BCS)
(Through International Consumer Products Corporation) (w.e.f February 18,
2011) (99% (99%) equity held by ICP) ·
Thuan Phat Foodstuff Joint Stock company (TPF)
(Through International Consumer Products Corporation) (w.e.f February 18,
2011) (98.6% (87%) equity held by ICP) |
CAPITAL STRUCTURE
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1150000000 |
Equity Shares |
Rs.1/- each |
Rs.1150.000 Millions |
|
100000000 |
Preference Shares |
Rs.10/- each |
Rs.1000.000 Millions |
|
|
|
|
|
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|
Total |
|
Rs.2150.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
644771779 |
Equity Shares |
Rs.1/- each |
Rs.644.800 Millions |
|
|
|
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|
a) Reconciliation of
number of shares
|
|
As at March 31, 2013 |
|
|
Particulars |
Number of shares |
Rs. In Millions |
|
Balance as at the beginning of the year |
614934387 |
614.900 |
|
Shares Issued during the year |
425648 |
0.500 |
|
Shares issued on Preferential allotment basis |
29411764 |
29.400 |
|
Balance as at the
end of the year |
644771799 |
644.800 |
Rights, preferences and
restrictions attached to shares:
Equity Shares: The Company has one class of equity shares having a par value of Re.1 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
Details of shares
held by shareholders holding more than 5% of the aggregate shares in the
Company
|
|
As at March 31, 2013 |
|
|
Name of Shareholder |
No. of Shares held |
% of Holding |
|
Equity Shares of
Re. 1/- each fully paid-up |
|
|
|
Harsh C Mariwala (As a representative of Valentine Family Trust) |
73376000 |
11.38 |
|
Harsh C Mariwala (As a representative of Aquarius Family Trust) |
73376000 |
11.38 |
|
Harsh C Mariwala (As a representative of Taurus Family Trust) |
73376000 |
11.38 |
|
Harsh C Mariwala (As a representative of Gemini Family Trust) |
73376000 |
11.38 |
|
Arisaig Partners (Asia) Pte Limited |
35353269 |
5.48 |
|
Oppenheimer Developing Markets Fund (Royal Bank of Scotland) |
30483651 |
4.73 |
Shares reserved for
issue under options:
The Corporate Governance Committee of the Board of Directors of Marico Limited has granted Stock Options to certain eligible employees pursuant to the Marico ‘Employees Stock Options Scheme 2007’ (“Scheme”). Each option represents 1 equity share in the Company. The Vesting period and the Exercise Period, both range from 1 year to 5 years.
The Scheme administered by the Corporate Governance Committee comprising independent Directors. The
Scheme closed on February 1, 2013.
|
Particulars |
As at March 31, 2013 |
|
Weighted average share price of options exercised |
5785 |
|
Number of options
granted, exercised, and forfeited |
|
|
Balance as at beginning of the year |
778313 |
|
Granted during the year |
-- |
|
Less : Exercised during the year |
425648 |
|
Forfeited / lapsed during the year |
-- |
|
Balance as at end of
the year |
352665 |
|
|
|
|
Percentage to
current paid–up equity share capital |
0.05% |
The Company has applied the intrinsic value based method of accounting for determining compensation cost for its stock based compensation plan and has accordingly reversed Rs. 0.200 million (Rs. 0.400 million) as compensation cost under the ‘intrinsic value’ method (Refer note 26). Had the Company considered ‘fair value’ method for accounting of compensation cost, the Company’s net income and Basic and Diluted earnings per share as reported would have reduced to the pro–forma amounts as indicated:
(Rs. In Millions)
|
Particulars |
As at March 31, 2013 |
|
Net Profit after tax as reported (Rs. millions) |
4290.900 |
|
Less : Stock–based employee compensation expense (Rs. millions) |
3.100 |
|
Adjusted pro–forma (Rs. millions) |
4287.800 |
|
Basic earnings per share as reported |
66.900 |
|
Pro–forma basic earnings per share |
66.900 |
|
Diluted earnings per share as reported |
66.900 |
|
Pro–forma diluted earnings per share |
66.900 |
The following
assumptions were used for calculation of fair value of grants:
|
Particulars |
As at March 31, 2013 |
|
Risk–free interest rate – Vest 1 (%) |
6.61% |
|
Risk–free interest rate – Vest 2 (%) |
7.27% |
|
Expected life of options (years) |
5 Years |
|
Expected volatility – Vest 1 (%) |
35.32% |
|
Expected volatility – Vest 2 (%) |
36.92% |
|
Dividend yield |
1.20% |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
644.800 |
614.900 |
614.400 |
|
(b) Reserves & Surplus |
19269.500 |
10626.300 |
8116.800 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
19914.300 |
11241.200 |
8731.200 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
3768.300 |
3247.300 |
3074.800 |
|
(b) Deferred tax liabilities (Net) |
30.400 |
0.000 |
0.000 |
|
(c) Other long term liabilities |
9.700 |
0.000 |
0.000 |
|
(d) long-term provisions |
0.000 |
53.200 |
0.200 |
|
Total Non-current Liabilities (3) |
3808.400 |
3300.500 |
3075.000 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
2793.600 |
2284.200 |
1927.100 |
|
(b) Trade payables |
3100.800 |
2444.700 |
1627.300 |
|
(c) Other current liabilities |
1523.700 |
857.200 |
1089.700 |
|
(d) Short-term provisions |
541.900 |
478.800 |
407.000 |
|
Total Current Liabilities (4) |
7960.000 |
6064.900 |
5051.100 |
|
|
|
|
|
|
TOTAL |
31682.700 |
20606.600 |
16857.300 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
3227.600 |
2380.800 |
2211.600 |
|
(ii) Intangible Assets |
124.700 |
20.100 |
13.000 |
|
(iii) Capital work-in-progress |
1453.400 |
362.200 |
247.100 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
10870.500 |
4059.100 |
3924.200 |
|
(c) Deferred tax assets (net) |
0.000 |
190.800 |
265.400 |
|
(d) Long-term Loan and Advances |
1392.800 |
2358.100 |
2056.000 |
|
(e) Other Non-current assets |
1353.400 |
1231.400 |
982.100 |
|
Total Non-Current Assets |
18422.400 |
10602.500 |
9699.400 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
2294.200 |
2662.600 |
779.400 |
|
(b) Inventories |
7089.800 |
5300.400 |
4542.200 |
|
(c) Trade receivables |
1238.500 |
1010.400 |
1189.800 |
|
(d) Cash and cash equivalents |
220.300 |
322.600 |
159.400 |
|
(e) Short-term loans and advances |
2334.100 |
544.600 |
449.400 |
|
(f) Other current assets |
83.400 |
163.500 |
37.700 |
|
Total Current Assets |
13260.300 |
10004.100 |
7157.900 |
|
|
|
|
|
|
TOTAL |
31682.700 |
20606.600 |
16857.300 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
34071.000 |
29653.500 |
23504.100 |
|
|
|
Other Income |
502.000 |
516.500 |
216.300 |
|
|
|
TOTAL (A) |
34573.000 |
30170.000 |
23720.400 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
17600.900 |
16719.200 |
13090.100 |
|
|
|
Purchases of stock-in-trade |
2026.100 |
1063.300 |
1068.500 |
|
|
|
Changes in inventories of finished goods, work-in-progress and stock-in-trade - (Increase) / decrease |
(1327.000) |
(400.200) |
(741.000) |
|
|
|
Employee benefits expenses |
1556.900 |
1262.100 |
1078.200 |
|
|
|
Other expenses |
8993.100 |
6934.500 |
5541.600 |
|
|
|
Exceptional items |
465.000) |
0.000 |
(654.700) |
|
|
|
TOTAL (B) |
28385.000 |
25578.900 |
19382.700 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
6188.000 |
4591.100 |
4337.700 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
436.800 |
283.400 |
316.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
5751.200 |
4307.700 |
4021.700 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
331.300 |
314.900 |
276.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
5419.900 |
3992.800 |
3745.400 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1129.000 |
626.900 |
592.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
4290.900 |
3365.900 |
3153.200 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
8354.100 |
6025.200 |
3826.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
429.000 |
337.000 |
315.000 |
|
|
|
Debenture Redemption Reserve |
213.000 |
200.000 |
167.000 |
|
|
|
Dividend |
322.000 |
430.000 |
405.000 |
|
|
|
Tax on Dividend |
52.000 |
70.000 |
67.000 |
|
|
BALANCE CARRIED
TO THE B/S |
11629.000 |
8354.100 |
6025.200 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB value of exports |
1385.900 |
1923.500 |
1391.500 |
|
|
|
Royalty |
60.800 |
76.200 |
68.400 |
|
|
|
Dividend |
187.100 |
198.900 |
44.800 |
|
|
|
Interest |
41.000 |
40.900 |
40.300 |
|
|
|
Corporate guarantee income |
7.000 |
7.700 |
0.000 |
|
|
TOTAL EARNINGS |
1681.800 |
2247.200 |
1545.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw materials |
1492.200 |
1318.900 |
328.000 |
|
|
|
Packing materials |
11.800 |
22.000 |
27.000 |
|
|
|
Capital goods |
3.600 |
11.700 |
1.600 |
|
|
|
Stock - in - trade (Traded goods) |
1.500 |
10.900 |
18.800 |
|
|
TOTAL IMPORTS |
1509.100 |
1363.500 |
375.400 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(Rs.) |
6.69 |
5.48 |
5.15 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
12.41 |
11.16 |
13.29 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
15.91 |
13.47 |
15.93 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
27.99 |
24.96 |
30.16 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.27 |
0.36 |
0.42 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.32 |
0.49 |
0.57 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.67 |
1.65 |
1.41 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report
(Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
UNSECURED LOAN
(Rs. In Millions)
|
Particulars |
As on 31.03.2013 |
As on 31.03.2012 |
|
Long term
borrowings |
|
|
|
Debentures 500, 10.05%, Rated Taxable Unsecured Redeemable Non-convertible debentures of face value of Rs. 1.000 Million each |
0.000 |
500.000 |
|
1,000, Rated, Listed Unsecured, Zero Coupon Redeemable Non–convertible debentures of face value of Rs. 10,00,000/– each |
1000.000 |
0.000 |
|
|
|
|
|
Short term borrowings
|
|
|
|
Buyers’ credit |
178.200 |
1112.200 |
|
Pre-shipment credit in foreign currency |
597.100 |
305.200 |
|
Other term loans in foreign currency |
542.800 |
508.800 |
|
Cash Credit |
923.100 |
0.000 |
|
From others |
|
|
|
Commercial papers |
450.000 |
0.000 |
|
Less: Deferred interest |
(25.000) |
0.000 |
|
Total |
3666.200 |
2426.200 |
PRESS RELEASE
MARICO Q2FY14 RESULTS
MARKET SHARE IMPROVEMENT ACROSS THE PORTFOLIO, MARGIN EXPANSION REVENUE UP 5%,
PAT UP 25%
Marico posted Revenue from Operations of INR 1,118 crore (USD 180 million) a growth of about 5% over Q2FY13, during the quarter ended September 30, 2013 (Q2FY14). The top line growth was driven by growth in volumes of about 4% each in Domestic and International businesses.
The growth in Profits after Tax (PAT) was about 25% at a Group level. The growth in profits during Q2FY14 excluding the impact of change in the method of depreciation (carried out in Q4FY13) was about 23%.
The Scheme of demerger of the Kaya business has been sanctioned by the Honorable Bombay High Court with an appointed date of April 1, 2013. November 5, 2013 is fixed as the record date for allotment of shares by Marico Kaya Enterprises Limited (MaKE) to shareholders of Marico Limited in the ratio of 50:1 (1 share of Rs. 10 each in MaKE for every 50 shares of Re. 1 each held in Marico).
In India, softening in the sector due to the general consumer price inflationary trend and restricted spends on discretionary products has impacted the Company’s growth rates. Moreover, growth in the primary sales during the current quarter was low due to a one time paring down of stocks in the trade given value growth lagging volume growth and inflation in distribution costs. Secondary volume growth in India is about 9% and this is as per Company’s expectations given the overall economic situation.
The gross margins expanded by 190 bps during Q2FY14. Operating margins expanded by 210 bps to 15.1%.
Market shares continued to inch up and remained healthy across categories and geographies. New Products (Saffola Oats and Parachute Advansed Body Lotion) continued to track well.
BUSINESS UNIT-WISE
DETAILS HAVE BEEN GIVEN IN THE NEXT TWO PAGES. MORE DETAILS ARE AVAILABLE IN
THE INFORMATION UPDATE ISSUED TODAY AND POSTED ON THE COMPANY’S
The India Business achieved a turnover of INR 804 crore (USD 130 million) during the quarter, a growth of about 1% over Q2FY13.
The volume growth in India was about 4% for the quarter, in an environment where demand has been soft. Moreover, primary volumes were low due to a one time correction of stocks in the trade. Growth in secondary sales was as per expectations.
The business recorded market share gains across the portfolio even though the rate of category growths have decelerated over the past few quarters mainly in discretionary segments in Urban areas.
The operating margin of the India business during Q2FY14 was about 17.6%. The Company believes that this level of operating margin is sustainable in the medium term.
Parachute coconut oil in rigid packs (the focus part of the Parachute portfolio) recorded a volume growth of about 1% during the quarter. Secondary sales grew by a healthy 7% in line with expectations. During the 12 month period ended September 2013, Parachute along with Nihar improved its market share by about 55 bps over the same period last year to 56%
The Saffola refined edible oils franchise grew by about 7% in volume terms during Q2FY14 as compared to Q2FY13. Secondary volume grew by over 9%. It is expected to maintain this trend for the rest of the year. The brand maintained its leadership position in the super premium refined edible oils segment with a market share of about 57% during the 12 months ended September 2013. The company revamped one of its existing variants, with an improved and top of the line offering for modern day needs; Saffola Total. Saffola Total has twice the amount of antioxidants as olive oil. The Company’s approach is to deliver a product based on science that is best for the consumers rather than offer plain commodities.
In breakfast cereals, Saffola Oats continues to do well and retained its no. 2 position with a 13% market share. The exit market share was about 17%.
Marico’s value added hair oil brands (Parachute Advansed, Nihar Naturals and Hair and Care) continued to record very healthy growths and gained share by about 260 bps. The franchise grew its volumes by 15% during Q2FY14 as compared to Q2FY13 and secondary volume grew by 20%. The Company maintained its leadership position with a share of over 28% (for 12 months ended September 30, 2013).
The Company is now focusing on scaling up its presence in all the sub segments of Value Added Hair Oils so that it can get advantages of operating leverage in fixed costs and advertisement spends leading to expansion in operating margins.
Parachute Advansed Body Lotion has achieved a volume market share of about 7.1% (moving 12 months basis) and has maintained its number 3 position in the market. The brand off-takes grew at 26% during H1 compared to the category growth rate in mid-teens.
The acquired portfolio of youth brands (Set Wet, Zatak and Livon) achieved a top line of about INR 97 crore (USD 15.7 million) during H1FY14 recording a growth of 30% (considering H1FY13 base of Marico and erstwhile owners). The Company has established a leadership position in the Hair Gels and Post Wash Leave-on conditioner market with about 43% and 80% share respectively.
Set Wet and Zatak had earlier seen some decline in market shares in the deodorant segment given that there was some lack of focus in the hands of the erstwhile owners. This decline has now been arrested and the trend is beginning to reverse. The market share during Q2FY14 was about 5% as compared to 3.9% in Q2FY13.
Marico’s International Business focused on Bangladesh, MENA (Middle East and North Africa), South Africa and South East Asia comprised about 24% of the Marico Group’s FMCG turnover in FY13, achieved a turnover of INR 314 Crore (USD 50.6 million) during Q2FY14 and thus reported a growth of 14% as compared to Q2FY13. The top line growth was led by 4% volume growth. The Operating margin for the quarter was over 16.7%.
The business in Bangladesh reported a top line growth of 1% (in constant currency) and continued its margin expansion journey in a benign input cost environment. Parachute increased its market share to 83% in the branded coconut oil market.
Value Added Hair Oils category touched 20% market share in Q2FY14. The launch of Hair Code ACTIVE, a faster-acting variant of Hair Code hair dye is gaining traction. Hair Code combined with Hair Code Active has strengthened its leadership position with an exit market share of 33%.
The business in Egypt was highly affected by political turmoil during the quarter and grew by about 5%. However, the outlook for quarters going forward is positive. Hair Code and Fiancée together maintained a market share of 56% in the gels category. The business in GCC which suffered a decline is poised to record sales growth in H2FY14 and record profits by early to mid of FY15.
The business in South Africa reported a top line growth of 7% during the quarter. The business environment continues to be challenging with the ethnic hair care segments declining. Marico South Africa has however gained Market share in the category over the past few years.
The business in Vietnam is tracking as per expectations and grew by 21% in Q2FY14 over Q2FY13 in constant currency terms. X-Men maintained its leadership in male shampoos and the number two position in male deodorants. The Company continues to scale up its presence in neighboring countries like Malaysia and Myanmar.
Saugata Gupta, CEO, Marico said: “Amidst challenging environment, the foundations of the business continue to be strong with market shares improving across categories and geographies. The new products too have demonstrated a satisfactory performance. Moreover, the synergies of ONE Marico post the integration of domestic and international FMCG business will start playing out from beginning of FY15. We are confident about improvement in performance going forward.”
Milind Sarwate, Group CFO said “Marico’s FMCG Business has held to a growth mode despite challenges posed by economic conditions in India and unrest in some of our overseas markets. The basics of our business are however robust. The Kaya demerger process has had to deal with unforeseen procedures because of regulatory changes midstream. We now expect shares in Marico Kaya Enterprises Limited to list in February- March 2014.”
REVIEW OF OPERATIONS
During FY13 Marico registered revenue from operations of Rs. 45960.000 Millions, a growth of 15% over the previous year. This was contributed by 12% expansion in volumes (includes 4% inorganic growth) accompanied by 3% through price increases and sales mix. The top line increase was accompanied by a bottom-line growth of 25%. Profit after Tax (PAT) including exceptional items during the year was at Rs. 3960.000 Millions as against Rs.3170.000 Millions in FY12. The financial statements of FY13 and FY12 include certain exceptional items. The growth in PAT after excluding the impact of such items is healthy 18%. The detail about the exceptional items is provided under section “Results of Operations”.
The Company has demonstrated steady growth on both the top line and the bottom line. Over the last 5 years, they have grown at a Compounded Annual Growth Rate of 19% each.
CONSUMER PRODUCTS
BUSINESS: INDIA
The Consumer Products Business in India (CPB) achieved a turnover of Rs. 32530.000 Millions during FY13, a growth of about 18% over FY12. The organic domestic volume growth was about 11% in an environment of subdued demand. The healthy volume growth reflects strong equity of the Company’s brands in consumers’ minds.
Marico participates in the Rs. 28000.000 millions (USD 518 million) branded coconut oil market through Parachute, Nihar and Oil of Malabar. Parachute coconut oil in rigid packs, the focus part of its portfolio, grew by 10% in volume as compared to FY12. During the 12 month period ended March 2013 Parachute along with Nihar improved its market share by about 240 basis points (bps) over the same period last year to 57.6%
Marico’s hair oil brands (Parachute Advansed, Nihar and Hair and Care) have performed well over the past few years. These brands continued to record very healthy growths and market share gains during FY13. The volume growth rate was 24% for FY13. Marico’s basket of hair oil brands achieved market leadership position in the Value Added Hair Oils space and now have about 27% share (for 12 months ended March 31, 2013) in the Rs. 45000.000 millions (USD 834 million) market. This compares to a share of about 17%-18% about 5-6 years ago.
The Saffola refined edible oils franchise grew by about 7% in volume terms during FY13 compared to FY12. The deceleration in the growth can be attributed to two reasons: a softer demand environment in premium packaged foods that are discretionary in nature and inflation in the safflower oil and rice bran oil being at significantly higher levels compared to inflation in sunflower oil. This had led to expansion in premium of Saffola vis-ŕ-vis the other refined edible oils. Though the Company doesn’t believe that Saffola’s existing consumers are down trading there is a deceleration in the rate at which new consumers are upgrading into the Saffola brand, leading to a lower growth rate. The Company has initiated some price reduction in select packs in order to bring the premium back to sustainable levels.
Saffola oats, including its savory variants, are now available on a national basis. Saffola has an exit market share of about 13% by volume in the Oats category and has emerged as the number two player in the category showing a fast paced growth of 30% per annum. Besides offering oats Saffola strengthened its position in the breakfast category by introducing Muesli on a national basis. The market size of Muesli is estimated to be around Rs. 800.000 millions to INR 100 crore (USD 14.800 million to USD 18.500 million) growing rapidly at rates in excess of 40%. Saffola Muesli has already become a number 3 player with an exit market share of about 9%.
Parachute Advansed Body Lotion has achieved a market share of over 7% (moving 12 months basis) within a short period of time and has become the number 3 participant in the market. The brand gained about 320 bps in market share during the current season as compared to the last season.
The acquired portfolio of the youth brands has completed its first financial year in Marico’s hands (even though this year was of 9 months as the transaction was completed in end of May 2012). The overall performance thus far is tracking better than the company’s acquisition assumptions. The turnover achieved from the youth brands during the year was INR 139 crore (USD 25.7 million), a growth of 18% over the corresponding period in FY12.
INTERNATIONAL FMCG
BUSINESS
The year FY13 has been a mixed year for the international FMCG business. The overall business environment in international business remained challenging throughout the year. There were some pockets of the business that performed well whereas at the same time some faced challenges. The overall performance was subdued during the year mainly on account of de-growth in Middle East region.
During FY13, the Company’s international business recorded a turnover growth of 8% over FY12. Without considering the impact of adverse performance in GCC region, the international business grew by 17%.
KAYA
Kaya offers skin care solutions - its technology led cosmetic dermatological services and products through 105 clinics: 83 in India across 26 cities and 18 in the Middle East in addition to the 4 DRx clinics and medispas in Singapore and Malaysia.
During the year FY13, Kaya achieved a turnover of INR 336 crore (USD 62.2 million) registering a growth of about 21% over FY12. The Kaya business in India and in the Middle East achieved same store sales growth of about 12% during FY13 as compared to FY12. Amidst an environment where the discretionary spends are witnessing a deceleration in growth rates Kaya business has continued to report growth.
During FY13, Kaya recorded a loss of about Rs. 1850.000 millions (USD 3.4 million) at the PBIT level. This compares with a loss of Rs. 3080.000 millions (USD 5.7 million) at PBIT level for FY12 (this includes a financial hit of Rs. 130.000 millions of one-time adjustment in Kaya Middle East). The losses for the year FY13 also include a financial hit amounting to Rs.150.000 millions (USD 2.800 million) on account of impairment of certain clinics in India and Middle East which are not performing as per expectation.
Taking the objective of increasing the product sales further, Kaya has introduced a new concept in the month of December 2012 called “Kaya Skin Bar”. The Company now has three such stores opened in Delhi and Bangalore. The Company plans to prototype this concept with 4 or 5 stores and depending upon the response it will decide the future course of action.
CONTINGENT
LIABILITIES:
(Rs. In Millions)
|
Particular |
31.03.2012 |
|
Disputed tax demands / claims : |
|
|
Sales tax |
249.900 |
|
Income tax |
7.700 |
|
Customs duty |
4.000 |
|
Agricultural produce marketing cess |
95.800 |
|
Employees state insurance corporation |
1.800 |
|
Excise duty on subcontractors |
4.100 |
|
Service Tax |
1.700 |
|
Excise duty on CNO dispatches (Refer note (a) below) |
3460.900 |
|
Claims against the Company not acknowledged as debts. |
4.200 |
|
Total |
4010.100 |
The contingent liability pertains to a possible excise duty obligation in respect of pure coconut oil packs up to 200 ml. This claim has been contested and a legal opinion in the matter has been obtained. Based on the legal opinion and in its assessment, the management believes that the probability of success in the matter is more likely than not and accordingly, the possible excise obligation has been treated as a contingent liability in accordance with requirements of Accounting Standard (AS) 29 “Provisions, Contingent Liability and Contingent Asset”. The possible excise duty obligation of Rs. 2423.200 Millions (Rs. 1571.500 Millions) for the clearances made after June 3, 2009 (i.e. the date of issue of Board circular) till March 31, 2013 and Rs. 1217.700 Millions (Rs. 1217.700 Millions) for clearances made prior to June 3, 2009 has been disclosed as contingent liability to the extent of the time horizon covered by show cause notices issued by the excise department within the normal period of one year (from the date of clearance) as per the excise laws.
The Company will continue to review this matter during the coming accounting periods based on the developments on the outcome in the pending cases and the legal advice that it may receive from time to time.
FIXED ASSETS:
Tangible Assets
· Freehold Land
· Leasehold Land
· Buildings
· Plant and Equipments
· Furniture and Fixtures
· Vehicles
· Office Equipments
Intangible Assets
· Trademarks and Copyrights
· Computer Software
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10294992 |
07/05/2012 * |
2,466,990,000.00 |
HSBC BANK (MAURITIUS) LIMITED |
HSBC CENTRE, 18, CYBERCITY, EBENE, - 000000, MAURITIUS |
B40158875 |
|
2 |
10020050 |
02/11/2010 * |
2,930,000,000.00 |
STATE BANK OF INDIA |
CORPORATE ACCOUNTS GROUP BRANCH, NEVILLE HOUSE, J. N. HEREDIA MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA |
A99405300 |
* Date of charge modification
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. 62.57 |
|
|
1 |
Rs. 100.62 |
|
Euro |
1 |
Rs. 84.62 |
INFORMATION DETAILS
|
Information
Gathered by : |
PLK |
|
|
|
|
Report Prepared
by : |
DPH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
68 |
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.