MIRA
INFORM REPORT
|
Report Date : |
10.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
TTK HEALTHCARE LIMITED |
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Registered
Office : |
No.6, |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
21.05.1958 |
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Com. Reg. No.: |
18-003647 |
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Capital
Investment / Paid-up Capital : |
Rs.77.660 millions |
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CIN No.: [Company
Identification No.] |
L24231TN1958PLC003647 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHET07410E |
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PAN No.: [Permanent
Account No.] |
AABCT3312J |
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Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges. |
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Line of Business
: |
Subject is engaged in Pharmaceuticals, Consumer Products, Medical
Devices, Foods and Publications Businesses. |
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No. of Employees
: |
1757 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (64) |
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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 3929000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a part of “TT Krishnamachari Group”. It is a
well-established company having fine track record. The rating reflects the strong liquidity position marked by healthy
capital structure, diversified business mix with established brands in
several product categories supported by strong distribution network. Trade relations are reported as fair. Business is active. Payment
terms are reported to be regular and as per commitments. The company can be considered good for normal business dealings at
usual trade terms 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 – December 1, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
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
The services sector, the largest contributor to India’s GDP, contracted
for the sixth consecutive month in December, as orders dipped. However, hiring
has risen. Direct tax collections rose 12.3 % during the April – December
period of the current financial year. The government has decided to
retain 100 per cent foreign direct investment in both greenfield (new) and
brown field (existing) pharmaceutical companies, despite concerns over genetic
drugs going out of production, if multi-national companies take over domestic
ones. In M&A deals, a non compete clause would not be allowed, except in
special circumstances. The Department of Industrial Policy and Promotion plans
to release the next edition of its consolidated foreign direct investment
policy document on March 31, incorporating changes made in the past year. DIPP
compiles all policies related to India’s FDI regime into a single document to
make it easy for investors to understand. 185 million estimated number of
mobile internet users in India by June 2014, according to a report by the
Internet & Mobile Association of India and IMRB International. India
had 110 million mobile internet users with 25 million in rural areas. $3.77 tn
estimated global IT spending in 2014, according to research firm Gartner Inc.
The growth forecast for this year is cut to 3.1 %from the earlier estimate of
3.5 %. The spending growth forecast for telecom services – a segment that
accounts for more than 40 % at total IT spending – from 1.9 per cent to 1.2 per
cent is the main reason for this overall IT cut. A Reserve Bank of India
committee has recommended setting up a special category of lenders who would
cater to small businesses and households, to expand the number of customers
with access to banking services. These banks would focus onproviding payment
services and deposit products. Indian banks want the free use of
automated teller machines to be capped at five transactions in a month
including that of the bank in which the account is active. This follows state
government order to banks to install security guards at ATM booths after a
woman banker was assaulted in Bangalore. The government is likely to present a
vote on Account in mid-February. The annual Economic Survey will be tabled
later in Parliament along with the full Budget. A full Budget for 2014/15 is
likely to be present in July by the new government formed after the General
Election. The government will soon launch an internet spy system, called Netra,
to detect malafide messages. Security agency will deploy the system to capture
dubious voice traffic on applications such as Skype and Google Talk, as well as
tweeters.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Fund based facilities: A+ |
|
Rating Explanation |
Adequate degree of safety and low credit risk |
|
Date |
March 2013 |
|
Rating Agency Name |
ICRA |
|
Rating |
Fund based facilities (Sub Limits): A1+ |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
March 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.
LOCATIONS
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Registered/ Head/ Administrative Office : |
No.6, Cathedral Road, Chennai – 600 086, Tamilnadu, India |
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Tel. No.: |
91-44-28116106/ 08/ 09/ 10 |
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Fax No.: |
91-44-28114307 |
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E-Mail : |
skr@ttkhealthcare.com
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Website : |
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Factory 1 : |
No.5, Old Trunk Road, Pallavaram, Chennai – 600 043, Tamilnadu, India. |
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Factory 2 : |
No.2-B, Hosakote Industrial Area, 8th Kilometer, Hosakote
Chintamani Road, Bangalore – 562 114, Karnataka, India |
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Factory 3 : |
Site No.A-28, KINFRA International Apparel Parks Limited, St.
Xavier’s Collage P.O., Thumba, Trivandrum – 695 586, Kerala, India |
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Factory 4 : |
No.290, SIDCO Industrial Estate, Ambattur, Chennai – 600 098, Tamilnadu, India |
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Factory 5 : |
No.3, Thiruneermalai Main Road, Chromepet, Chennai – 600 044,
Tamilnadu, India |
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Publications Divisions : |
Plot No.13, 1st Avenue, Mahindra World City, Natham Sub Post, Chengalpet Taluk, Kanchipuram – 603 002, Tamilnadu, India |
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Depots : |
Located at: · Ahmedabad · Bangalore · Bhiwandi · Chandigarh · Chennai · Cuttack · Dehradun · Ernakulam · Ghaziabad · Guwahati · Hubli · Hyderabad · Indore · Jaipur · Jammu · Kolkata · Lucknow · Madurai · Meerut · Mumbai · Nagpur · New Delhi · Panchkula · Patna · Pune · Raipur · Ranchi · Siliguri · Vijayawada · Zirakpur |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. T.T. Jagannathan |
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Designation : |
Chairman |
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Name : |
Mr. T.T. Raghunathan |
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Designation : |
Executive Vice Chairman |
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Date of Birth/ Age: |
61 Years |
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Qualification: |
B. Com. |
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Experience : |
41 Years |
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Date of Appointment : |
01.11.2001 |
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Name : |
Mr. R.K. Tulshan |
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Designation : |
Director |
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Name : |
Dr. K.R. Srimurthy |
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Designation : |
Director |
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Name : |
Mr. B.N. Bhagwat |
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Designation : |
Director |
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Name : |
Mr. J. Srinivasan |
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Designation : |
Director |
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Name : |
Mr. R. Srinivasan |
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Designation : |
Director |
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Name : |
Mr. K. Vaidyanathan |
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Designation : |
Executive Director |
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Name : |
Mr. K. Shankaran |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. S. Kalyanaraman |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2013
|
Category of
Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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|
926835 |
11.93 |
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|
10080 |
0.13 |
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|
4144085 |
53.36 |
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|
4144085 |
53.36 |
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5081000 |
65.43 |
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Total shareholding of Promoter and Promoter Group (A) |
5081000 |
65.43 |
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(B) Public Shareholding |
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|
165506 |
2.13 |
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|
9935 |
0.13 |
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|
417125 |
5.37 |
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|
592566 |
7.63 |
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|
118308 |
1.52 |
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|
1320036 |
17.00 |
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|
619478 |
7.98 |
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|
34595 |
0.45 |
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|
467 |
0.01 |
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|
34128 |
0.44 |
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|
2092417 |
26.94 |
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Total Public shareholding (B) |
2684983 |
34.57 |
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Total (A)+(B) |
7765983 |
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) |
7765983 |
0.00 |
(1) Indian
Individuals / Hindu Undivided Family
Partnership FirmsBUSINESS DETAILS
|
Line of Business : |
Subject is engaged in Pharmaceuticals, Consumer Products, Medical
Devices, Foods and Publications Businesses. |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
1757 (Approximately) |
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Bankers : |
·
Bank of Baroda ·
Corporation Bank ·
Axis Bank Limited |
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Facilities : |
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Banking
Relations : |
-- |
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Statutory Auditors : |
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Name 1 : |
Aiyar and Company Chartered Accountants |
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Address : |
New No.2 (Old No.184), Rangarajapuram Main Road (1st
Floor), Kodambakkam, Chennai – 600 024, Tamilnadu, India |
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Name 2 : |
S. Viswanathan Chartered Accountants |
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Address : |
New No.17 (Old No.8A), Bishop Wallers Avenue (West), Mylapore, Chennai
– 600 004, Tamilnadu, India |
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Associates/ Firms: |
·
T.T. Krishnamachari and Company ·
Pharma Research and Analytical Laboratories ·
TTK Prestige Limited ·
TTK Protective Devices Limited (formerly TTK-LIG
Limited) ·
Packwell Packaging Products Limited ·
SSL-TTK Limited |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10000000 |
Equity Shares |
Rs.10/- each |
Rs.100.000 millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
7765983 |
Equity Shares |
Rs.10/- each |
Rs.77.660
millions |
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Particulars |
31.03.2013 |
|
par value per share: |
10/- |
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|
Reconciliation of the number of shares outstanding at the beginning
and at the end of the reporting period |
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|
Equity shares: |
|
|
(i) No. of shares outstanding at the beginning of the period |
7765983 |
|
(ii) No. of shares issued during the period |
-- |
|
(iii) No. of shares bought back / forfeited during the period |
-- |
|
(iv) No. of shares outstanding at the end of the period |
7765983 |
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|
|
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The rights, preferences and restrictions attaching
to each class of shares including restrictions on the distribution of
dividends and the repayment of capital |
The Company
presently has only one class of Equity Shares. Each Shareholder is entitled
to one vote per share and also to dividend as proposed and approved by the
Directors and Members respectively. |
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|
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|
Shares in respect of each class in the Company
held by its Holding Company or its ultimate Holding Company including shares
held by or by Subsidiaries or associates of the Holding Company or the
ultimate Holding Company in aggregate |
-- |
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|
Shares in the Company held by each shareholder holding more than 5
percent shares specifying the number of shares held |
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|
T.T. Jagannathan (9.40%) |
730048 |
|
T.T. Krishnamachari and Company represented
by its Partners (53.36%) |
4144085 |
|
|
|
|
shares reserved for issue under options and
contracts / commitments for the sale of shares / disinvestment, including the
terms and amounts |
-- |
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|
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For the period of five years immediately
preceding the date as at which the Balance Sheet is prepared: |
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|
· Aggregate number and class of shares allotted
as fully paid up pursuant to contract(s) without payment being received in
cash. |
-- |
|
· Aggregate number and class of shares allotted
as fully paid up by way of bonus shares. |
-- |
|
· Aggregate
number and class of shares bought back: |
|
|
2008-09 - Equity Shares of Rs.10/- each |
22917 |
|
2009-10 - Equity Shares of Rs.10/- each |
321514 |
|
2010-11 - Equity Shares of Rs.10/- each |
-- |
|
2011-12 - Equity Shares of Rs.10/- each |
-- |
|
2012-13 - Equity Shares of Rs.10/- each |
-- |
|
Total |
344431 |
|
|
|
|
Terms of any securities convertible into equity/preference
shares issued along with the earliest date of conversion in descending order
starting from the farthest such date. |
-- |
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|
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|
Calls unpaid |
-- |
|
|
|
|
Forfeited shares
(amount originally paid up) |
-- |
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 |
77.660 |
77.660 |
77.660 |
|
(b) Reserves & Surplus |
904.563 |
799.374 |
679.688 |
|
(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) |
982.223 |
877.034 |
757.348 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) Long-term borrowings |
5.776 |
4.739 |
6.204 |
|
(b) Deferred tax liabilities (Net) |
26.495 |
23.312 |
21.121 |
|
(c) Other long
term liabilities |
80.290 |
75.488 |
67.170 |
|
(d) Long-term
provisions |
0.000 |
0.000 |
0.000 |
|
Total Non-current
Liabilities (3) |
112.561 |
103.539 |
94.495 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
215.540 |
175.451 |
124.083 |
|
(b)
Trade payables |
285.631 |
358.128 |
316.080 |
|
(c)
Other current liabilities |
461.053 |
373.394 |
362.172 |
|
(d) Short-term
provisions |
36.448 |
36.208 |
274.677 |
|
Total Current
Liabilities (4) |
998.672 |
943.181 |
1077.012 |
|
|
|
|
|
|
TOTAL |
2093.456 |
1923.754 |
1928.855 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i)
Tangible assets |
430.759 |
329.082 |
323.324 |
|
(ii)
Intangible Assets |
3.622 |
4.416 |
2.823 |
|
(iii)
Capital work-in-progress |
3.089 |
59.357 |
47.754 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.000 |
60.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
112.321 |
70.302 |
13.250 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
549.791 |
463.157 |
447.151 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
7.681 |
67.681 |
8.360 |
|
(b)
Inventories |
270.966 |
326.847 |
268.290 |
|
(c) Trade
receivables |
351.049 |
373.568 |
324.831 |
|
(d) Cash
and cash equivalents |
837.638 |
619.029 |
608.076 |
|
(e)
Short-term loans and advances |
76.331 |
73.472 |
272.147 |
|
(f)
Other current assets |
0.000 |
0.000 |
0.000 |
|
Total
Current Assets |
1543.665 |
1460.597 |
1481.704 |
|
|
|
|
|
|
TOTAL |
2093.456 |
1923.754 |
1928.855 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations (Net) |
3822.983 |
3537.419 |
3109.205 |
|
|
|
Other Income |
67.386 |
47.043 |
44.066 |
|
|
|
TOTAL (A) |
3890.369 |
3584.462 |
3153.271 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
203.077 |
131.766 |
114.286 |
|
|
|
Purchases of Stock-in-trade |
1638.394 |
1790.802 |
1547.902 |
|
|
|
Changes in inventories of Finished Goods, Work-in-progress and
Stock-in-trade |
54.447 |
(60.681) |
(36.511) |
|
|
|
Employee benefits expense |
529.504 |
435.622 |
368.198 |
|
|
|
Other expenses |
1196.095 |
1002.296 |
900.142 |
|
|
|
TOTAL (B) |
3621.517 |
3299.805 |
2894.017 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
268.852 |
284.657 |
259.254 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES (D) |
25.438 |
25.597 |
18.097 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
243.414 |
259.060 |
241.157 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
27.197 |
23.577 |
19.713 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
216.217 |
235.483 |
221.444 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
74.183 |
79.192 |
74.225 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
142.034 |
156.291 |
147.219 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
372.557 |
268.369 |
172.253 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
31.064 |
31.064 |
31.064 |
|
|
|
Provision for tax on Dividend |
5.279 |
5.039 |
5.039 |
|
|
|
Amount transferred to General Reserve |
14.500 |
16.000 |
15.000 |
|
|
BALANCE CARRIED
TO THE B/S |
463.748 |
372.557 |
268.369 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of Goods (FOB Value) |
47.228 |
25.806 |
21.318 |
|
|
TOTAL EARNINGS |
47.228 |
25.806 |
21.318 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
37.296 |
30.559 |
18.586 |
|
|
|
Capital Goods |
9.989 |
1.528 |
13.741 |
|
|
|
Spares |
0.045 |
0.020 |
0.000 |
|
|
TOTAL IMPORTS |
47.330 |
32.107 |
32.327 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
18.29 |
20.13 |
18.96 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
3.65 |
4.36
|
4.67 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.66 |
6.66
|
7.12 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.34 |
12.63
|
12.16 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.22 |
0.27
|
0.29 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.23 |
0.21
|
0.17 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.55 |
1.55
|
1.38 |
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 |
Yes |
|
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 |
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:
CHENNAI COURT
CASE STATUS INFORMATION SYSTEM
|
Case Status: |
Pending |
|
Status Of: |
Tax Cases |
|
Case No.: |
1469 |
|
Year : |
2007 |
|
Petitioner : |
Commissioner of Income Tax |
|
Respondent : |
TTK Healthcare Limited |
|
Pet's Advocate : |
Pushya Sitaraman |
|
Res's Advocate : |
|
|
Category : |
No Category Mentioned Last Listed on: No Date Mentioned |
|
Case Updated on : |
November 21, 2007 |
ANALYSIS OF
PERFORMANCE:
• Revenue from Operations
registered a growth of about 8% as against the previous year's figure of 14%.
The lower growth was mainly on account of discontinuation of the distribution
arrangement for
Kohinoor / Durex
brand of Condoms.
• The increase in
Other Income was due to higher Interest Income on Fixed Deposits (Rs.10.192
millions) and profit on sale of Secured Redeemable Non-convertible Debentures
(Rs.9.762 millions).
• Goods
Consumption as a percentage of Revenue from Operations for the year works out
to 49.59% as against the previous year's figure of 52.63%. The reduction is due
to higher proportion of Own Branded
Goods vis-ŕ-vis
Traded Goods in the product mix.
• The employee
benefits expense was higher due to regular annual increments, the impact of the
long term wage settlement for EPD field staff and the cost of expansion of
field manpower.
• The increase in
Power and Fuel expenses was on account of the higher production at Foods
Division.
• The increase in
Advertisement and Sales Promotion expenses on account of enhanced
advertisements / higher sales promotional expenses incurred on various product
categories and incentives to field staff.
• The increase in
net Fixed Assets mainly represents the- (i) cost of Fen make Pellet (Pappad) Manufacturing
Line commissioned during the year and construction of godown space at Foods
Division (Rs.78.500 millions); and (ii) expenses incurred for the renovation of
the factory and the Quality Control Laboratory at Pallavaram and purchase of
equipments therefor (Rs.17.900 millions).
• The reduction in
Investments by Rs.60.000 millions was due to the sale of Secured Redeemable
Non-convertible Debentures, at a consideration of Rs.69.800 millions.
• The reduction in
Inventories and Trade Receivables was due to discontinuation of the
distribution arrangement relating to Kohinoor and Durex brand of Condoms and
SSL range of footcare products. However, there has been an increase in the
Trade Receivables of Foods Division, consequent to the increase in volumes.
• The increase in
Loans and Advances mainly represents capital advances for purchase of
industrial land, plant and machinery and residential units for employees.
• The increase in
Cash and Cash Equivalents mainly represents the increase in Fixed Deposits.
• The reduction in
Trade Payables is due to the settlement of dues to the principals, consequent
to the discontinuation of the distribution arrangement relating to Kohinoor and
Durex brand of Condoms and SSL range of footcare products.
REVIEW OF PERFORMANCE
During the year,
Revenue from Operations amounted to Rs.3823.000 millions as against the
previous year's figure of Rs.3537.400 millions, a growth of about 8%.
The overall
performance of the Company was affected mainly due to the discontinuation of the
distribution arrangement with TTK Protective Devices Limited (formerly TTK-LIG
Limited) for Kohinoor / Durex brand of Condoms, consequent to the settlement
reached between them and their overseas partners.
MANAGEMENT
DISCUSSION AND ANALYSIS
ECONOMIC AND
BUSINESS ENVIRONMENT:
The macro economic
environment throughout the year was challenging in the backdrop of weak global
economic scenario as well as a host of domestic factors.
During the year
2012-13, the GDP growth was low at 5% as against the previous year's figure of
6.2%. The inflationary trend continued during the year too.
Indian Pharma
Industry grew by 14.3% during the year 2012, which was driven by (i) growth in
volume of existing brands (4.4%); (ii) new introductions (6.0%); and (iii)
price revisions (3.9%). However, the growth has dipped to 9.1% in the last
quarter of 2012. The proportion of Chronic Therapy Segment in the overall
market is moving up, with a higher growth. Chronic Segment grew at 17.1%
vis-ŕ-vis the growth of 13.3% in Acute Segment. Anti-diabetic and Cardiac
Segments continue to report healthy growth.
SEGMENTWISE
PERFORMANCE:
The Company is
engaged in Pharmaceuticals, Consumer Products, Medical Devices, Foods and
Publications Businesses.
A look at the
performance of individual Business Segments:
Pharmaceutical
Business:
The Ethical Pharma
Business of the Company deals in Pharmaceutical Formulations both Herbal and
Allopathic, in various therapeutic segments. Pharmaceuticals also include Woodward's
Gripewater. Since this product is distributed through the Consumer Products
Division of the Company, it is covered under the head Consumer Products
Business.
Ethical Products Division (EPD) and
Ventura Division
After a few years
of healthy growth, there has been a slowdown in Pharma Business, during the
year. Though the herbal and anti-infertility segments have shown reasonable
growth, the performance of allopathic formulations has been below expectations.
Older products under the Allopathic Range were either stagnant or reported
negative growth. Manpower attrition too had its adverse impact on the overall
performance.
Steps such as
enhancement of starting salaries, improvement in the compensation packages,
signing of long term wage settlement with the unionized field staff, enhanced
training and development initiatives, etc., have already been taken to reduce
the attrition rate and to attract and retain talents.
In addition to
brand-specific focus on existing products, steps have also been initiated to
identify and launch new products so as to sustain the growth.
Animal Welfare Division (AWD)
The turnover of
the Animal Welfare Division remained flat due to discontinuation of a few
products that were commercially not viable. Prolonged adverse scenario
prevailing in the Poultry Segment due to mortality and huge escalation in the
prices of poultry feeds had further aggravated the situation.
However, the
positive aspect was that on the livestock segment, most of the flagship brands
and also the newly launched products have reported healthy growth.
The overall AWD
business is being trifurcated into Livestock, Poultry and Pet Businesses, so as
to enhance the focus and grow each of these businesses independently.
Consumer Products
Business:
During the year,
the performance of this Division as a whole has been satisfactory. Woodward's
Gripe Water continued its growth trajectory especially with some strong gains
in the northern markets and ended the year with a healthy growth. EVA as a
brand retained its market leadership position. However, the growth was not as
strong as previous year's basically due to sluggish category growth and
increased competitive activity. Good Home continued to perform as per
expectations across all categories.
The distribution
arrangement for Kohinoor / Durex brand of Condoms stands discontinued,
consequent to the settlement reached between the Principals TTK Protective
Devices Limited (formerly TTK-LIG Limited) and their overseas partners.
Likewise, the distribution arrangement with SSL-TTK Limited for footcare
products also stands discontinued, as part of this settlement.
In November 2012,
TTK Protective Devices Limited launched a new brand of Condom “Skore” which is
being nationally distributed by the Company and the initial response has been
encouraging.
Medical Devices
Business:
Heart Valve Division
The performance of
the Heart Valve Division was impacted due to lower off-take from Government
Sponsored Welfare Programmes and also severe competition from imported brands
through price cuts. Efforts are made to retain the volumes.
Animal trials with
reference to Improved Heart Valves and Vascular Grafts have been completed and
are awaiting regulatory clearances for human trials.
The regulatory process
for import of Bio-Prosthetic Valves is in progress and the approval is expected
shortly.
The prototypes
prepared under the R&D Programme for development of Stent for Aneurysm
Repair was not satisfactory and therefore, further work needs to be done on the
same.
Clinical follow-up
studies as stipulated by the Certifying Agency for awarding CE marking for
Heart Valves is awaiting regulatory clearance and the certification is expected
after completion of these studies.
Ortho Division
During the year,
Ortho Division reported healthy growth. Steps are taken to further accelerate
doctor conversion / usage. Extensions / augments needed for revision surgery
have been added to the range during the year. Steps are also being taken for
developing Porous Coated Knee, Titanium Knee, etc.
A small
manufacturing facility has been set up exclusively for manufacturing
Instrumentation Sets at Chromepet, Chennai.
Efforts are also
being put in for developing the overseas markets like Sri Lanka, Turkey, Italy,
Malaysia, Philippines, Myanmar, etc. and exports have already commenced to some
of these countries.
Further, the
Company's overseas collaborators have also approved addition of a few more
countries for marketing BP Knees and this is expected to provide further fillip
to the export endeavours of the Company.
Publications
Business:
The performance of
the Publications Business during the year has not been satisfactory.
Considering the current market scenario / potential for printed map-based
products with the advent of digital technology and the need to have a threshold
turnover, this business does not appear to be commercially viable. It is,
therefore, proposed to gradually run down the operations and exit the segment.
Foods Business:
During the year,
the overall performance of Foods Division has been quite encouraging.
The Fen make
Pellet (Pappad) Manufacturing line acquired from McFills, Ahmedabad has been
commissioned and both the Fen Lines and the old refurbished Pavan Lines are
working at full capacity. The Panipuri Pappad, an innovative product developed
by the Foods Division, has been very well received by the market and has
contributed substantially to the turnover / profitability of the Division
during the year.
Considering the
current growth and market potential, the Company is putting up a
state-of-the-art manufacturing facility in Rajasthan, at a cost of around
Rs.400.000 millions. This facility would not only add to the production
capacity but also be capable of producing more innovative and value added
products. The plant is expected to be commissioned in the first half of
2014-15.
The implementation
of HACCP-based Food Safety Management System at Hosakote factory has progressed
well and the certification is expected during the Third Quarter of 2013-14. The
Company has also set up Fryums Live Frying Kiosks at a couple of locations in
Bangalore as a test marketing initiative to validate this concept.
Further, the
Company has also commenced a test marketing initiative by launching retail
packs of Ready-to-fry Snack Pellets (Pappads) under “Fryums” brand name in
Andhra Pradesh, during the First Quarter of 2013-14.
UNAUDITED
FINANCIAL RESULTS FOR THE THIRD QUARTER ENDED 31ST DECEMBER, 2013
(Rs.
in Millions)
|
S.
No. |
Particulars |
3 months ended |
Previous 3
months ended |
Year to date
figure for current period ended |
|
31.12.2013 |
30.09.2013 |
31.12.2013 |
||
|
Unaudited |
Unaudited |
Unaudited |
||
|
1. |
Income
from Operations |
|
|
|
|
|
a)
Net
Sales / Income from Operations (Net of Excise Duty) |
1057.233 |
1006.660 |
3154.375 |
|
|
b)
Other
Operating Income |
0.354 |
0.527 |
1.678 |
|
|
Total income from Operations (Net) |
1057.587 |
1007.187 |
3156.053 |
|
2. |
Expenses |
|
|
|
|
|
a)
Cost
of materials consumed |
69.369 |
60.106 |
195.314 |
|
|
b)
Purchases
of Stock-in-trade |
453.795 |
454.813 |
1329.717 |
|
|
c)
Changes
in Inventories of finished goods, work-in-progress and stock-in-trade |
(25.267) |
(36.696) |
(41.909) |
|
|
d)
Employee
benefits expense |
148.550 |
148.785 |
447.988 |
|
|
e)
Depreciation
and amortisation expense |
7.799 |
7.479 |
22.504 |
|
|
f)
Marketing
Expenses |
169.209 |
144.048 |
515.987 |
|
|
g)
Other
expenses |
185.111 |
180.088 |
564.050 |
|
|
Total Expenses |
1008.566 |
958.623 |
3033.651 |
|
3. |
Profit/ (Loss) from Operations before Other Income, Finance Costs and Exceptional Items (1-2) |
49.021 |
48.564 |
122.402 |
|
4. |
Other Income |
13.033 |
14.783 |
42.364 |
|
5. |
Profit / (Loss) from Ordinary Activities before Finance Costs and Exceptional Items
(3±4) |
62.054 |
63.347 |
164.766 |
|
6. |
Finance Costs |
6.895 |
7.755 |
22.093 |
|
7. |
Profit / (Loss) from Ordinary Activities after Finance Costs but before Exceptional Items
(5±6) |
55.159 |
55.592 |
142.673 |
|
8. |
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
9. |
Profit / (Loss) from Ordinary Activities before Tax
(7±8) |
55.159 |
55.592 |
142.673 |
|
10. |
Tax Expense |
20.226 |
19.440 |
51.305 |
|
11. |
Net Profit / (Loss) from Ordinary Activities after
Tax (9±10) |
34.933 |
36.152 |
91.368 |
|
12 |
Extraordinary Items (Net of Tax Expenses) |
0.000 |
0.000 |
0.000 |
|
13. |
Net Profit / (Loss) for the period (11 ±12) |
34.933 |
36.152 |
91.368 |
|
14. |
Share of Profit / (Loss) of Associates |
N.A. |
N.A. |
N.A. |
|
15. |
Minority Interest |
N.A. |
N.A. |
N.A. |
|
16. |
Net Profit / (Loss) after taxes, minority interest
and share of profit / (loss) of associates (13±14±15) |
34.933 |
36.152 |
91.368 |
|
17. |
Paid-up Equity Share Capital (Face Value Rs.10 per
share) |
77.660 |
77.660 |
77.660 |
|
18. |
Reserve excluding Revaluation Reserves as per
Balance Sheet of previous accounting year |
-- |
-- |
-- |
|
A |
PARTICULARS OF SHAREHOLDING |
|
|
|
|
1. |
Public
Shareholding |
|
|
|
|
|
- Number of Shares |
2684983 |
2684983 |
2684983 |
|
|
- Percentage of Shareholding |
34.57% |
34.57% |
34.57% |
|
2. |
Promoters
and Promoter Group Shareholding |
|
|
|
|
|
Pledged
/ Encumbered |
|
|
|
|
|
- Number of Shares |
-- |
-- |
-- |
|
|
- Percentage of Shares (as a % of the total shareholding
of Promoter and Promoter Group) |
-- |
-- |
-- |
|
|
- Percentage of Shares (as a % of the total Share
Capital of the Company) |
-- |
-- |
-- |
|
|
Non-encumbered |
|
|
|
|
|
- Number of Shares |
5081000 |
5081000 |
5081000 |
|
|
- Percentage of Shares (as a % of the total
shareholding of Promoter and Promoter Group) |
100.00% |
100.00% |
100.00% |
|
|
- Percentage of Shares (as a % of the total Share
Capital of the Company) |
65.43% |
65.43% |
65.43% |
|
|
Particulars |
3 months
ended (31.12.201.) |
|
B |
INVESTOR COMPLAINTS |
|
|
|
Pending at the beginning
of the Quarter |
Nil |
|
|
Received during the
Quarter |
Nil |
|
|
Disposed of during the
Quarter |
N.A. |
|
|
Remaining uresolved at the
end of the Quarter |
Nil |
Notes:
1. The above results were taken on record by the Board of Directors of the
Company at their Meeting held on 5th February, 2014 at Chennai.
2. The profit for the period April-December, 2013 was lower due to
non-recurring expenses (Consultancy Fees and Discontinued Product Lines)
amounting to Rs.29.000 millions, incurred in the First Quarter.
3. The prior periods'/year's figures have been regrouped and reclassified,
wherever necessary to conform to the current periods'/year's presentation, in
conformity with Revised Schedule VI.
CONTINGENT
LIABILITIES:
|
PARTICULARS |
31.03.2013 (Rs. in
millions) |
31.03.2012 (Rs. in
millions) |
|
Guarantees against letters of credit opened |
8.529 |
13.471 |
|
Other Guarantees |
19.986 |
18.320 |
|
Disputed Taxes/Claims, not acknowledged as
debts |
137.375 |
150.558 |
|
Total |
165.890 |
182.349 |
FIXED ASSETS:
Tangible Assets
Freehold Assets:
·
Land
·
Buildings
·
Plant and Equipment
·
Furniture and Fixtures
·
Vehicles
·
Office Equipments
·
Computers
Assets under
lease:
·
Leasehold Land
·
Leasehold Building
·
Vehicles
Intangible Assets
·
Computer Softwares
·
Brand/ Trade Mark
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.62.32 |
|
|
1 |
Rs.101.78 |
|
Euro |
1 |
Rs.84.68 |
INFORMATION DETAILS
|
Report Prepared
by : |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--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 |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
64 |
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.