MIRA
INFORM REPORT
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Report Date : |
27.08.2014 |
IDENTIFICATION DETAILS
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Name : |
GLAXOSMITHKLINE CONSUMER HEALTHCARE LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
30.10.1958 |
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Com. Reg. No.: |
16-002257 |
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Capital Investment
/ Paid-up Capital : |
Rs. 420.555
Millions |
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CIN No.: [Company Identification
No.] |
L24231PB1958PLC002257 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
PTLG11719B |
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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
: |
Manufacturer of Malt based Food, Protein Rich Food, Cereal Beverages,
Nutritional Food Powder, etc. |
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No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
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MIRA’s Rating : |
Aa (76) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 73000000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having excellent track record. The management of the company has changed its financial year from
(December 2012 to March 2014) ranging from January 2013 to March 2014 for 15
months. Financial position of the company is sound. Fundamentals of the
company are healthy. Share price are quoted high on stock exchange. Trade relations are reported as fair. Business is active. Payments
terms are reported to be regular and as per commitment. The company can be considered good for 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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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India |
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
N E W S
As per the latest IMF study, the total weigh of emerging markets in the GDP
of the world on a purchasing power parity basis has seen a sizeable shift. It
highlights how as against 51 % in 2005, the emerging economies now account for
close to 56 % of the global purchasing power GDP as per the latest survey. And
with the emerging economies growing at a faster rate than their developed
counterparts, there are every possibility that the their share goes up further
in the coming years. China may surpass the US over the next few years.
Politics and economics are very intricately connected. They tend to
influence each other in ways that could be very complex and far-reaching. The
prospects of the India’s economy have been seriously compromised due to
political corruption. High inflation, poor standard of living are to a great
extent a result of rampant corruption in the country. China on the other hand,
seems to be facing diametrically opposite challenge. American hedge fund
manager Jim Chanos has been keenly following the political and economic
development in the dragon economy and has figured out something that is quite
worrying. He is of the view that the Chinese economy could be heading toward
trouble on account of new Chinese President Xi Jingping’s very aggressive
anti-corruption drive. Chanos believes tat many things such as apartment sales,
luxury products, etc. were largely bought with dirty money. And it is now
beginning to impact consumption. This may indeed be bad news for an economy
that is struggling to transition from an investment-driven export-oriented
economy to a domestic consumption-driven economy.
A study published by Firstpost has revealed that asset classes like real
estate and equities were the biggest beneficiaries of the liberalization
policies. A firm called Ciane Analytics studied returns from assets
including equities, gold, fixed deposits, G-Secs and real estate since 1991.
Real estate outperformed every other asset classes during the 23-year period
with an annualized return of 20 % ! Equities came in second with annualized
return of 15.5 % ! However, while these returns may seem mouthwatering, the
fact is that the return from equities adjusted for inflation came down to just
7.1 %.
Some brief news are as under
. R-Power to buy Jaypee’s hydro assets
. Investors await justice in NSEL case
. India seeks MFN status from Pakistan ahead of meeting
. Ukrain’s clashes with rebels hinder MH17 crash investigation
. India exploring merger of state-owned hydro PSUs
..Higher costs weigh down profit growth to slowest in 9 quarters
..Wal-Mart to expand wholesale business in India
. GMR group moves to strengthen balance sheet
. Central Bank to sell 4 % stake to Life Insurance Corporation
. Tata Chemicals plans to raise up to Rs 10000 mn.
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
31-03-2014.
INFORMATION DECLINED
MANAGEMENT NON – COOPERATIVE (91-124-2540700)
LOCATIONS
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Registered Office/ Factory 1 : |
Patiala Road, Nabha, District Patiala – 147201, Punjab, India |
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Tel. No.: |
Not Available |
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Fax No.: |
Not Available |
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E-Mail : |
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Website : |
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Head/ Corporate Office : |
DLF Plaza Tower, DLF Phase I, Gurgaon – 122002, Haryana,
India |
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Tel. No.: |
91-124-2540700/ 5057700 |
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Fax No.: |
91-124-2540720/ 2540721 |
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E-Mail : |
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Factory 2 : |
Industrial Area, Dowleswaram – 533124, Andhra Pradesh, India |
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Factory 3 : |
14 km Stone, Sonepat - Meerut Road, Village Khewra, P.O. Bahalgarh, District Sonepat -130121, Haryana, India |
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Regional Offices : |
Located at: New Delhi
Kolkata
Mumbai
Chennai |
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Depots : |
Located at: South Bangalore Chennai Cochin Pondicherry Kandlakoya
(Hyderabad) Madurai East Cuttack Guwahati Ranchi Dankuni
(Kolkata) Patna Siliguri West Ahmedabad Goa Indore Pune Raipur North Dehradun Jaipur Delhi Lucknow Panchkula Zirakpur |
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RDCs : |
Located at: Kandlakoya
(Hyderabad) Ambala Delhi |
DIRECTORS
As on 31.03.2014
|
Name : |
Mr. Simon J. Scarff, O.B.E (till 30.4.2013) |
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Designation : |
Chairman |
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Name : |
Mr. Subodh Bhargava (w.e.f. 1.5.2013) |
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Designation : |
Chairman |
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Name : |
Mr. Zubair Ahmed |
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Designation : |
Managing Director |
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Name : |
Mr. Kunal Kashyap |
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Designation : |
Director |
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Name : |
Mr. Mukesh H. Butani |
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Designation : |
Director |
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Name : |
Mr. Naresh Dayal |
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Designation : |
Director |
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Name : |
P. Dwarakanath |
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Designation : |
Director |
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Name : |
Mr. Praveen K. Gupta |
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Designation : |
Director |
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Name : |
Jaiboy J. Phillips |
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Designation : |
Director |
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Name : |
Mr. Ramakrishnan Subramanian |
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Designation : |
Director |
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Name : |
Mr. Jonathan Box (w.e.f. 9.4.2013) |
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Designation : |
Director |
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Name : |
Mr. Ireena Vittal (w.e.f. 1.5.2013 till 30.4.2014) |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Surinder Kumar (till 31.7.2013) |
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Designation : |
Company Secretary |
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Name : |
Ms. Sonali Khanna (w.e.f. 1.8.2013) |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2014
|
Category
of Shareholder |
Total
No. of Shares |
As a % |
|
(A) Shareholding of Promoter and Promoter Group |
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30471992 |
72.46 |
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30471992 |
72.46 |
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Total shareholding of Promoter and Promoter Group (A) |
30471992 |
72.46 |
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(B) Public Shareholding |
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81307 |
0.19 |
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267532 |
0.64 |
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5024102 |
11.95 |
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5372941 |
12.78 |
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705325 |
1.68 |
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4107313 |
9.77 |
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1283184 |
3.05 |
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|
114783 |
0.27 |
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|
2244 |
0.01 |
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|
107885 |
0.26 |
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|
4374 |
0.01 |
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|
280 |
0.00 |
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6210605 |
14.77 |
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Total Public shareholding (B) |
11583546 |
27.54 |
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Total (A)+(B) |
42055538 |
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) |
42055538 |
0.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Malt based Food, Protein Rich Food, Cereal Beverages,
Nutritional Food Powder, etc. |
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Products/ Services : |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Licensed
Capacity Qty MT |
Installed
Capacity Qty MT |
Actual
Production* Qty MT |
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1. Malt Based Foods |
105000 |
|
37689 |
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2. Cereal Based Beverage |
2000 |
114400 |
3414 |
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3. Powdered Milk |
3000 |
|
-- |
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4. Protein Rich Foods |
3000 |
1200 |
960 |
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5. Nutritional Food Powder |
1200 |
|
56 |
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6. Malt Based Foods |
-- |
-- |
78982 |
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7. Protein Rich Foods |
-- |
-- |
516 |
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8. Cereal Based Beverage |
-- |
-- |
342 |
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Total |
114200 |
115600 |
121959 |
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9. Ghee |
6000 |
4000 |
371 |
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10. Packaged Foods |
-- |
-- |
638 |
* Actual Production includes Bulk Production and
does not include Trial Production
Notes:
1. The actual production under Serial No. 1 does not include production of intermediate products of 48,280 MT (Previous Year 43,081 MT) for captive consumption. This intermediate product is further processed at Third Party for manufacture of Malt Based Foods and accordingly, the said production is disclosed under Serial No. 6. Further, the closing stock under Serial No. 1 does not include 5,586 MT amounting to Rs. 600.119 Millions (Previous year 5,100 MT amounting to Rs. 511.883 Millions)
2. The installed capacities on triple shift basis are as per certificates given by the Director-Operations and have not been verified by the Auditors, being a technical matter.
3. Production figures are net of captive consumption.
4. Powdered Milk is for captive consumption and accordingly the same have been included in Goods in Process in Schedule 5 and 15. Boost Intermediate/ Horlicks Intermediates are included in Goods in Process in Schedule 5 and 15 as these are semi-finished products.
5. Licensed capacity listed above Serial No. 1, 2, 3, 4, 5 and 9 are in respect to all the three factories of the company and are covered by Industrial Entrepreneurs' Memorandums (IEMs) in terms of Notification No. 477 (E) dated July 25, 1991 of the Department of Industrial Development, Ministry of Industry, Government of India.
6. The Products under Serial No. 1, 2 and 3 to 5 are manufactured in an integrated plant respectively and, therefore, installed capacity cannot be given separately.
7. The Products listed under Serial No. 6, 7, 8 and 10 are processed by Third Parties.
8.
Closing Stock is net of samples, internal
consumption, other stock losses
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management |
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Bankers : |
· Deutsche Bank · Citibank N.A. · BNP Paribas · State Bank of India · HDFC Bank Limited · The Hongkong and Shanghai Banking Corporation Limited · Dena Bank · ICICI Bank Limited · State Bank of Patiala · Andhra Bank · JP Morgan Chase Bank N.A. · ANZ Bank · DBS Bank Limited · Standard Chartered Bank ·
Punjab National Bank |
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Banking
Relations : |
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Auditors : |
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Name : |
Price Waterhouse Chartered Accountants |
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Promoter Company: |
· Horlicks Limited, (subsidiary of GlaxoSmithKline Plc UK) holds 43.16% of equity shares of the Company. · GlaxoSmithKline Pte. Limited, (subsidiary of GlaxoSmithKline Plc UK) holds 29.29% of equity shares of the Company. |
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Other related
parties in GlaxoSmithKline Group which are under Common Control and with whom
transaction has taken place during
the period: |
· Glaxo Operations UK Limited · GlaxoSmithKline Bangladesh Limited · GlaxoSmithKline Export Limited · PT Glaxo Wellcome Indonesia · GlaxoSmithKline Asia Private Limited. · GlaxoSmithKline Australia Pty Limited. · GlaxoSmithKline Consumer Healthcare Pte. Limited · GlaxoSmithKline Consumer Healthcare Sdn Bhd · GlaxoSmithKline Pharmaceuticals Limited · GlaxoSmithKline Philippines Inc. · GlaxoSmithKline Services Unlimited · GlaxoSmithKline Consumer Nigeria Plc · GlaxoSmithKline Plc · PT Sterling Products Indonesia · SB Corp. CB (USA) · SB Pharmaceutical Services · SB Research Limited · SB Corporate Centre · SmithKline Beecham (Private.) Limited., Sri Lanka · SmithKline Beecham Corporation · (Sterling Drugs (Malaya) Sdn Bhd · GlaxoSmithKline (China) Investment Company Limited · GlaxoSmithKline South Africa Pty Limited · Glaxo Saudi Arabia Limited · GlaxoSmithKline Pakistan Limited · Glaxo Opearation UK Limited · GlaxoSmithKline SP.ZOO |
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|
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Trusts under Control
of the Board of the Trustees - |
· Senior Staff Gratuity Fund · Employees Gratuity Fund · Provident Fund · Senior Executives SAF |
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
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|
60000000 |
Equity Shares |
Rs. 10/- each |
Rs. 600.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
42055538 |
Equity Shares |
Rs. 10/- each |
Rs. 420.555
Millions |
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NOTE:
Reconciliation of Equity Shares outstanding
|
Particulars |
31.03.2014 |
|
|
|
No. of Shares |
Rs. in Millions |
|
Balance at the beginning of the year |
42055538 |
420.555 |
|
Add : Shares issued during the year |
-- |
-- |
|
Less : Shares bought back during the year |
-- |
-- |
|
Balance at the end of the year |
42055538 |
420.555 |
Rights, preferences
and restrictions attached to shares
The Company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting. 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 shareholding.
Shares held by the
Subsidiaries of the Ultimate Holding Company
|
Equity Shares: |
31.03.2014 Rs. in Millions |
|
1,81,52,243 (PY: 1,81,52,243) Equity Shares are held by Horlicks Limited* |
181.522 |
|
1,23,19,749 (PY: Nil) Equity Shares are held by GlaxoSmithKline Pte. Ltd.* |
123.197 |
*Subsidiaries of the Ultimate Holding Company, GlaxoSmithKline Plc UK
Details of shareholders having more than 5% of the aggregate shares in
the Company
|
Name of Shareholder |
31.03.2014 |
|
|
|
No. of Shares
held |
Rs. in Millions |
|
Horlicks Limited |
18152243 |
43.16% |
|
GlaxoSmithKline Pte. Limited |
12319749 |
29.29% |
|
Arisaig Partners (Asia) Pte Limited A/c Arisaig India |
2054172 |
4.88% |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2014 (15
Months) |
31.03.2012
(12
Months) |
31.03.2011 |
|
|
|
|
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|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
420.555 |
420.555 |
420.555 |
|
(b) Reserves & Surplus |
17707.938 |
13189.219 |
11021.171 |
|
(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) |
18128.493 |
13609.774 |
11441.726 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities
(Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term
liabilities |
93.846 |
114.831 |
99.668 |
|
(d) long-term provisions |
1126.337 |
767.968 |
507.597 |
|
Total
Non-current Liabilities (3) |
1220.183 |
882.799 |
607.265 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Trade payables |
6715.906 |
4784.375 |
3593.686 |
|
(c) Other current liabilities |
5236.624 |
3515.582 |
2942.658 |
|
(d) Short-term provisions |
2813.485 |
2753.079 |
2239.232 |
|
Total
Current Liabilities (4) |
14766.015 |
11053.036 |
8775.576 |
|
|
|
|
|
|
TOTAL |
34114.691 |
25545.609 |
20824.567 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
3364.196 |
1894.415 |
2006.894 |
|
(ii) Intangible Assets |
34.902 |
43.908 |
0.000 |
|
(iii) Capital work-in-progress |
384.502 |
1972.386 |
1491.579 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
903.031 |
616.263 |
398.897 |
|
(d) Long-term Loan and Advances |
1888.774 |
589.002 |
504.276 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total
Non-Current Assets |
6575.405 |
5115.974 |
4401.646 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
4074.186 |
3696.355 |
3699.558 |
|
(c) Trade receivables |
2993.458 |
1126.144 |
991.907 |
|
(d) Cash and cash equivalents |
18387.835 |
14642.426 |
10796.544 |
|
(e) Short-term loans and
advances |
754.656 |
525.694 |
600.328 |
|
(f) Other current assets |
1329.151 |
439.016 |
334.584 |
|
Total
Current Assets |
27539.286 |
20429.635 |
16422.921 |
|
|
|
|
|
|
TOTAL |
34114.691 |
25545.609 |
20824.567 |
PROFIT & LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2014 (15
Months) |
31.03.2012
(12
Months) |
31.03.2011 |
|
|
SALES |
|
|
|
|
|
Income |
48685.716 |
31874.936 |
27650.045 |
|
|
Other Income |
2069.092 |
1137.858 |
852.521 |
|
|
TOTAL
(A) |
50754.808 |
33012.794 |
28502.566 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
15241.317 |
10198.918 |
9297.39 |
|
|
Purchases of Stock-in-Trade |
2065.425 |
1464.299 |
1343.298 |
|
|
Changes in inventories of finished
goods, work-in-progress and Stock-in-Trade |
89.130 |
(144.747) |
(440.007) |
|
|
Employees benefits expense |
4700.548 |
3011.195 |
2583.656 |
|
|
Other expenses |
17861.679 |
11611.174 |
9821.196 |
|
|
TOTAL
(B) |
39958.099 |
26140.839 |
22605.533 |
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (C) |
10796.709 |
6871.955 |
5897.033 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
10.523 |
24.233 |
34.664 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
10786.186 |
6847.722 |
5862.369 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION (F) |
625.466 |
360.837 |
459.756 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
10160.720 |
6486.885 |
5402.613 |
|
|
|
|
|
|
|
Less |
TAX
(I) |
3413.252 |
2119.327 |
1850.544 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-I)
(J) |
6747.468 |
4367.558 |
3552.069 |
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
4676.391 |
2945.099 |
1458.967 |
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
Proposed Final Dividend |
1892.499 |
1892.499 |
1471.944 |
|
|
Differential dividend
distribution tax |
321.630 |
307.011 |
238.786 |
|
|
pertaining to previous year |
14.620 |
0.000 |
0.000 |
|
|
Transferred to General
Reserves |
674.747 |
436.756 |
355.207 |
|
|
Balance
Carried to the B/S (J+K+L-M) |
8520.363 |
4676.391 |
2945.099 |
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
|
|
|
|
|
Export of goods on F.O.B. basis |
NA |
1914.694 |
1815.921 |
|
|
Miscellaneous Income |
NA |
63.242 |
31.933 |
|
|
TOTAL
EARNINGS |
NA |
1977.936 |
1847.854 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
396.294 |
216.441 |
133.807 |
|
|
Capital Goods |
0.445 |
37.044 |
70.063 |
|
|
TOTAL
IMPORTS |
396.739 |
253.485 |
203.870 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (Rs.) |
160.44 |
103.85 |
84.46 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 (15
Months) |
31.03.2012
(12
Months) |
31.03.2011 |
|
PAT / Total Income |
(%) |
13.29 |
13.23 |
12.46 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
20.87 |
20.35 |
19.54 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
30.95 |
28.26 |
28.53 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.56 |
0.48 |
0.47 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.87 |
1.85 |
1.87 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 (12 Months) |
31.03.2014
(15
Months) |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
420.555 |
420.555 |
420.555 |
|
Reserves & Surplus |
11021.171 |
13189.219 |
17707.938 |
|
Net
worth |
11441.726 |
13609.774 |
18128.493 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
0.000 |
|
Short term borrowings |
0.000 |
0.000 |
0.000 |
|
Total
borrowings |
0.000 |
0.000 |
0.000 |
|
Debt/Equity
ratio |
0.000 |
0.000 |
0.000 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 (12 Months) |
31.03.2014
(15
Months) |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
27650.045 |
31874.936 |
48685.716 |
|
|
|
15.280 |
52.740 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 (12 Months) |
31.03.2014
(15
Months) |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
27650.045 |
31874.936 |
48685.716 |
|
Profit |
3552.069 |
4367.558 |
6747.468 |
|
|
12.85% |
13.70% |
13.86% |
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 |
No |
|
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 |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
No |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director,
if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
LITIGATION DETAILS
HIGH
COURT OF PUNJAB AND HARYANA
|
Case Details For Case CM-22139-CII-2008 |
||||
|
Diary Number |
270931 |
District |
UT-CHANDIGARH |
|
|
Category |
- |
Main Case Detail |
ITA-677-2008 |
|
|
Party Detail |
CIT, CHANDIGARH V/S M/S GLAXO SMITHKLINE CONSUMER HEALTHCARE |
|||
|
Advocate Name |
URVASHI DHUGGA |
List Type |
ORDINARY |
|
|
Status |
PENDING |
Next date |
|
|
|
|
||||
|
Case Listing Details |
||||
|
No Listing Data Available |
||||
|
||||
INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY
PERFORMANCE OF THE
COMPANY
The Company has delivered yet another year of strong performance, with each of the 5 quarters during the current financial year recording double digit profitable growth. The Company has now achieved consistent double digit profitable growth for the ninth year in a row. Sales and PAT for the 15 months ended March 31, 2014 were Rs. 46829.164 Millions and Rs. 6747.468 Millions respectively.
All Horlicks and Boost variants recorded strong double digit growth during the year, with Chocolate Horlicks and Women’s Horlicks doing exceedingly well. The current year witnessed a strong campaign which strengthened the “Horlicks increases the Power of Milk” proposition, where the role of Horlicks was highlighted in light of making up for the nutrient loss that boiling of milk causes. The campaign was aimed at building a higher emotional connect with the consumer by acknowledging a mother’s role in the multi-faceted performance of her child through Horlicks.
The Horlicks extensions range of brands continued to do exceedingly well with the year witnessing innovative campaigns and impressive all round performance with key milestones being achieved. Junior Horlicks was repositioned during the year with focus on holistic and brain development of the child, which was complemented with consumer centric promotions, strong on ground activations and impressive visibility in trade. The year also witnessed a promotional tie up with the extremely popular reality TV Show – Indian Idol Junior, wherein every Horlicks household stood a chance to perform on the Indian Idol Stage. This saw great traction from consumers with key mind measures showing upward movement and market share gains in core markets. Women’s Horlicks witnessed an exceptional year with superlative performance and crossed the Rs. 1000.000 Millions mark during 2013. This was achieved on the back of the new “Bone Health” proposition which was brought to life through a new thematic communication as well as bone density test led activation across all major metros. Horlicks Lite was re-launched during the year with emphasis on “Manage the impact of stress factors on the body”. The product has been received well after the re-launch. Mother’s Horlicks was re-launched during the year in its new vanilla flavor having superior taste and improved miscibility.
The year also witnessed the launches of Horlicks ProMind and Horlicks Kesar Badam. Horlicks ProMind, positioned as specialized nutrition for brain function, was launched to meet the critical need of mental development and sharpness especially amongst mothers of older kids. Horlicks Kesar Badam was launched on the proposition of a great tasting product containing “Real Kesar and Badam” combined with the Horlicks “5 signs of growth” claim. Both these variants have been accepted well by the consumer.
Boost, which stands for ‘energy’ and ‘winning’ at its core, had yet another successful year delivering strong double digit growth. This performance was supported by innovative campaigns during the year through which Virat Kohli was revealed as the next brand ambassador of Boost. These campaigns engaged kids and moms alike, raising the brand love for Boost. The year also witnessed Boost restage which was supported with a strong media campaign leveraging its sports ambassadors M. S. Dhoni and Virat Kohli. The year also witnessed the launch of Boost in an exciting flavour, Boost Choco Nut, which connected well with kids on taste.
The Foods portfolio continued to deliver strong growth. Horlicks Oats more than doubled its business during the current year and now ranks second in terms of market share in South India. Horlicks Savory Oats, designed specially for today’s fast-paced life, offers a convenient breakfast option that is rich in dietary fibre and proteins. It was launched in three flavours, Southern Spice, Classic Masala and Mild Kurma and has met with great success, ranking second in the segment within a short duration from launch. The Biscuits portfolio growth momentum continued during the current year, the year also witnessed the launch of Boost Biscuits.
The rural business continues to grow strongly on the back of strong activation, including sachet drives, across the nutritional category. their rural programme has reached more than 16,000 villages now. Two key growth drivers in their rural programme are Horlicks Swasthya Abhiyan (HSA) and Village Level Entrepreneurs (VLE); HSA programme aims to improve the standard of living in rural areas, engaging with rural medical practitioners and community workers, thus creating awareness, education and relevance for their brands. VLE is their new initiative by which we are reaching out to bottom of the pyramid, and in this process, economically empowering rural women. They already have more than 200 VLE’s across the country.
They are now opening a new frontier with the launch of a new programme for the Urban Emerging Consumer Class for slums in Mumbai and Chennai. They are also creating sales infrastructure in the top six metros, reaching out to around 10 million people by involving entrepreneurs and youth from local community. The programme extends Horlicks Health Mission to the schools in these slums.
The Company’s focussed cost management and working capital optimisation programme continued to deliver strong results in mitigating inflation and supporting profitable growth. Sustained improvement in working capital continued in the current financial year. The cost optimization programmes and returns from surplus cash arising from Working Capital initiatives have supported sustained investments in the Company’s brands. The strong focus on cost management has helped us build a robust pipeline of cost saving initiatives to support their pursuit for profitable growth.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
INDUSTRY STRUCTURE
AND DEVELOPMENT
The year 2013 was one of the toughest years for the Indian economy having recorded the lowest growth in the last 10 years. The Industrial sector went through a rather tough phase with decline in industrial growth. Further, heightened inflation kept interest rates high throughout the year. The Services sector also witnessed decline in growth rate. Agriculture was the only silver lining in the cloud having recorded impressive growth on the back of good monsoons. Widening trade deficit was of significant cause of concern. The year also witnessed significant depreciation of the Indian Rupee which, however, recovered during the latter part of the year after various remedial measures were taken and expectations of a stable government in the ensuing Lok Sabha elections. Amidst hopes of a stable and reform oriented government after the Lok Sabha elections, there is positive sentiment building in the markets for a kick start of the reforms process and decisive policy action. FII inflows touched the USD 200 Billion mark in 2014, with stock markets touching an all time high.
OPPORTUNITIES,
THREATS AND OUTLOOK
The slowing down of economic growth and sustained high inflation levels have adversely impacted the private consumption and the FMCG sector as a whole. Recent reports indicate that FMCG growth has halved during 2013. Prices of key commodities are expected to remain at high levels due to a below normal monsoon as per the recent forecast for 2014. The current scenario of muted consumption and intensifying competition would also warrant disproportionate levels of investment in Advertising and Promotions.
Despite these challenges, they believe, they are adequately placed to deliver strong performance given their strong internal capabilities and human capital. They have robust plans covering Go to Market Strategy, innovation for new products, cost management and talent management processes which they believe give us the capability to take the headwinds in their stride.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2014 (15
Months) (Rs.
In Millions) |
31.12.2012 (12
Months) (Rs.
In Millions) |
|
Contingent
Liabilities not provided for: |
|
|
|
a) Direct tax |
3929.664 |
2837.896 |
|
b) Indirect
taxes - net of tax impact Rs. 1.058 Millions (Previous Year Rs. 4.255
Millions) |
2.055 |
8.859 |
|
Notes: The amounts shown above represent the best possible
estimates of pending litigations/disputes arrived at on the basis of
available information. The above do not include potential risks/demands, if
any for ongoing issues, where no claims have been made against the Company.
The uncertainties and possible reimbursements if any are dependent on the
outcome of the different legal processes which have been invoked by the
Company or the claimants as the case may be and therefore cannot be predicted
accurately. The Company engages reputed professional advisors to protect its
interests and has been advised that it has strong legal positions against
such disputes. |
||
FIXED ASSETS:
Tangible Assets
Land (Freehold)
Buildings
Plant and
Equipment
Information Technology
Equipment
Furniture and
Fixtures
Office Equipment
Vehicles
Leasehold
Improvements
Intangible Assets
Patents and Trade Mark
Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No 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.60.50 |
|
|
1 |
Rs.100.33 |
|
Euro |
1 |
Rs.79.91 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
76 |
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.