MIRA
INFORM REPORT
|
Report Date : |
11.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
GILLETTE INDIA LIMITED |
|
|
|
|
Registered
Office : |
Plot No. SPA – 65A, Bhiwadi Industrial Area, Bhiwadi, Alwar – 301019, Rajasthan |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
30.06.2013 |
|
|
|
|
Date of
Incorporation : |
09.02.1984 |
|
|
|
|
Com. Reg. No.: |
17-002890 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 325.900 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L28931RJ1984PLC002890 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
JPRG05360F |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACI3924J |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing and Selling of branded packaged fast moving consumer goods in the grooming, portable power and oral care. |
|
|
|
|
No. of Employees
: |
Information declined by management |
RATING & COMMENTS
|
MIRA’s Rating : |
A (66) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 25970000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is a well established company having fine track record. Financial position of the company appears to be strong and healthy. Directors
are reported to be experienced and respectable businessmen. Trade relation are reported to be trustworthy. Business is active.
Payment terms are reported to be regular and as per commitment. The company can be considered good for business dealing 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.
INDIAN ECONOMIC OVERVIEW
India’s current
account deficit narrowed in the quarter ended September as government measures
to curb imports, especially gold, kicked in. The current account deficit,
the excess of a country’s imports of goods and services over exports, narrowed to
$ 5.2 billion from $ 21 billion in the year ago period, according to
provisional Reserve Bank of India data. Finance Minister P. Chidambaram said
the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and
the latest data suggests the government may achieve the target.
India was ranked 94th
among the world’s most corrupt nations list. Denmark and New Zealand topped as
the cleanest while Somalia emerged as the most corrupt.
India’s services
sector activity witnessed a moderate improvement in November over the previous
month, even while indicating the fifth successive monthly contraction,
according the HSBC survey.
$53 million
estimated losses suffered by India due to phishing attacks during the third
quarter, according to a study by RSA. India ranks fourth in the list of nations
hit by phishing attacks. The US remained at the top of the charts. Phishing is
the process of acquiring information such as user names, passwords and credit
card details by sending e-mails disguised as official mails.
Rs.4080 million
worth of mobile-phone-based transactions by July 2013 compared to Rs.260
million in September, 2012, according to Deloitte report. The number of
transactions has shot up from 94000 to 701000.
India aims to earn Rs.400000
million from the bandwidth auction set for January. The merger and acquisition
guidelines, cleared by a group of ministers, will be out before the auction
begins so that players can make informed decisions on the auctions.
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.: 91-22-28266000)
LOCATIONS
|
Registered Office/ Factory 1: |
Plot No. SPA – 65A, Bhiwadi Industrial Area, Bhiwadi, Alwar – 301019, Rajasthan, India |
|
Tel. No. : |
Not Available |
|
Fax No. : |
Not Available |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 2: |
Plot no. 4, Industrial Area Village Katha, Bhatoli Kalan Baddi, Solan - 173205, Himachal Pradesh, India |
|
|
|
|
Head Office : |
P&G Plaza, Cardinal Gracias Road, Chakala, Andheri (East), Mumbai – 400099, Maharashtra, India |
|
Tel. No.: |
91-22-28266000/ 24942113 |
|
Fax No.: |
91-22-66939698 |
DIRECTORS
As on 30.06.2013
|
Name : |
Mr. S. K. Poddar |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Shantanu Khosla |
|
Designation : |
Managing Director |
|
Date of Appointment : |
26.10.2005 |
|
|
|
|
Name : |
Mr. Bansi S Mehta |
|
Designation : |
Director |
|
Date of Appointment : |
26.10.2005 |
|
|
|
|
Name : |
Mr. C. R. Dua |
|
Designation : |
Director |
|
Date of Birth/Age : |
61 Years |
|
Date of Appointment : |
31.07.2002 |
|
|
|
|
Name : |
Mr. G. C. Das |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. A. Poddar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Pramod Agarwal |
|
Designation : |
Director |
|
Date of Appointment : |
01.08.2012 |
|
|
|
|
Name : |
Mr. Anil K. Gupta |
|
Designation : |
Director |
|
Date of Appointment : |
28.03.2009 |
KEY EXECUTIVES
|
Name : |
Mr. Amit K. Vyas |
|
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 |
|
|
|
|
|
|
|
|
11364338 |
34.88 |
|
|
11364338 |
34.88 |
|
|
|
|
|
|
13073465 |
40.12 |
|
|
13073465 |
40.12 |
|
Total shareholding of Promoter and Promoter Group (A) |
24437803 |
75.00 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
675789 |
2.07 |
|
|
6448 |
0.02 |
|
|
2543530 |
7.81 |
|
|
3225767 |
9.90 |
|
|
|
|
|
|
2273228 |
6.98 |
|
|
|
|
|
|
1619773 |
4.97 |
|
|
328267 |
1.01 |
|
|
700379 |
2.15 |
|
|
31756 |
0.10 |
|
|
1000 |
0.00 |
|
|
667623 |
2.05 |
|
|
4921647 |
15.10 |
|
Total Public shareholding (B) |
8147414 |
25.00 |
|
Total (A)+(B) |
32585217 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
32585217 |
100.00 |
Shareholding of securities (including shares, warrants, convertible
securities) of persons belonging to the category Promoter and Promoter Group
|
Name of the
Shareholder |
Details of Shares held |
|
|
No. of Shares held |
As a % |
|
|
Wella India Haircosmetics Private Limited |
66,27,254 |
20.34 |
|
Gillette Diversified Operations Private Limited |
19,79,433 |
6.07 |
|
Gillette Products Private Limited |
19,87,280 |
6.10 |
|
Nexus Mercantile Private Limited |
1,33,700 |
0.41 |
|
Mining Consultants India Private Limited |
6,36,671 |
1.95 |
|
Procter And Gamble India Holdings BV |
1,30,73,465 |
40.12 |
|
Total |
2,44,37,803 |
75.00 |
Shareholding of securities (including shares, warrants, convertible
securities) of persons belonging to the category Public and holding more than
1% of the total number of shares
|
Name of the
Shareholder |
No. of Shares held |
Shares as % |
|
|
Copthall Mauritius Investment Limited |
392007 |
1.20 |
|
|
SEBI Blue Chip Fund |
352922 |
1.08 |
|
|
Merrill Lynch Capital Markets Espana S A S V |
688000 |
2.11 |
|
|
Adventz Investments and Holdings Limited |
1109104 |
3.40 |
|
|
Planon Group Limited |
516038 |
1.58 |
|
|
Total |
3058071 |
9.38 |
|
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Selling of branded packaged fast moving consumer goods in the grooming, portable power and oral care. |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by management |
|
|
|
|
Bankers : |
Not Divulged |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
|
|
|
Holding Company : |
The Procter and Gamble India Holdings B.V. |
|
|
|
|
Ultimate Holding
Company: |
The Procter and Gamble Company, USA |
|
|
|
|
Fellow Subsidiaries
: |
· Procter and Gamble Bangladesh Private Limited Gillette
Diversified Operations Private Limited Gillette Products Private Limited Mining Consultants (India) Private Limited Wella India Haircosmetics Private Limited Procter and Gamble International Operations SA, Ceemea
Div. Gillette (Shanghai) Limited Procter and Gamble Do Brasil S/A Procter and Gamble Trading (Thailand) Limited Procter and Gamble International Operations SA, Singapore
Branch Gillette Poland International Sp. Z O.O. Procter and Gamble (China) Sales Company Limited Procter and Gamble International Operations SA Procter and Gamble Hygiene and Healthcare Limited Gillette UK Limited The Procter and Gamble Distributing LLC The Gillette Company, USA PandG International Operations SA – ROHQ Nexus Mercantile Private Limited The Procter and Gamble US Business Services Company Procter and Gamble (Guangzhou) Limited Procter and Gamble Home Products Limited PandG Europe S.A.,Singapore Branch Petersburg Products International Zao. Procter and Gamble Productions, Inc. PT Procter and Gamble Home Products Indonesia |
|
|
|
|
Investing company
in respect of which the Company is an associate: |
Wella India Haircosmetics Private Limited (“Wella”) (Formerly known as Gillette Group India Private Limited) # # Also being a fellow subsidiary Company |
CAPITAL STRUCTURE
As on 30.06.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
33000000 |
Equity Shares |
Rs.10/- each |
Rs. 330.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
32585217 |
Equity Shares |
Rs.10/- each |
Rs. 325.900 Millions |
|
|
|
|
|
Reconciliation of fully
paid equity shares
|
Particulars |
As at June 30, 2013 |
|
|
Number of Shares |
Rs. In Millions |
|
|
Equity shares at the beginning of the year |
32585217 |
325.900 |
|
Equity shares of Rs. 10 each issued during the year |
-- |
-- |
|
Equity shares outstanding at the end of the year |
32585217 |
325.900 |
Rights attached to
equity shares
The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in the proportion to the number of equity shares held by the shareholders.
Details of equity shares held by the holding company, the ultimate holding company and its subsidiaries:
|
Particulars |
As at June 30, 2013 |
|
|
Number of Shares |
Rs. In Millions |
|
|
Ultimate Holding
Company |
|
|
|
The Procter and Gamble Company, USA, ultimate holding company |
-- |
-- |
|
|
|
|
|
Holding Company |
|
|
|
Procter and Gamble India Holdings B.V., Netherlands, holding company |
13366742 |
133.700 |
|
|
|
|
|
Subsidiaries of the
ultimate holding company |
|
|
|
Wella India Haircosmetics Private Limited |
6627254 |
66.300 |
|
Gillette Diversified Operations Private Limited |
1979433 |
19.800 |
|
Gillette Products Private Limited |
1987280 |
19.900 |
|
Nexus Mercantile Private Limited |
133700 |
1.300 |
|
Mining Consultants (India) Private Limited |
636671 |
6.400 |
Details of shareholders holding more than 5% equity shares:
|
Particulars |
As at June 30, 2013 |
|
|
Number of Shares |
% of holding |
|
|
Procter and Gamble India Holdings B.V., Netherlands |
13366742 |
41.02 |
|
Wella India Haircosmetics Private Limited |
6627254 |
20.34 |
|
Gillette Diversified Operations Private Limited |
1979433 |
6.07 |
|
Gillette Products Private Limited |
1987280 |
6.10 |
|
Adventz Investments and Holdings Limited |
2488850 |
7.64 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.06.2013 |
30.06.2012 |
30.06.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders'
Funds |
|
|
|
|
(a) Share Capital |
325.900 |
325.900 |
325.852 |
|
(b) Reserves & Surplus |
6166.400 |
5866.700 |
5677.462 |
|
(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) |
6492.300 |
6192.600 |
6003.314 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
64.00 |
63.700 |
55.487 |
|
(c) Other long term liabilities |
0.200 |
0.200 |
0.160 |
|
(d) long-term provisions |
15.000 |
5.000 |
4.012 |
|
Total Non-current Liabilities (3) |
79.200 |
68.900 |
59.659 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Trade payables |
2192.600 |
2844.600 |
1362.215 |
|
(c) Other current
liabilities |
701.800 |
724.900 |
311.943 |
|
(d) Short-term provisions |
601.600 |
602.700 |
594.418 |
|
Total Current Liabilities (4) |
3496.000 |
4172.200 |
2268.576 |
|
|
|
|
|
|
TOTAL |
10067.500 |
10433.700 |
8331.549 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
1702.100 |
1514.600 |
1242.685 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii) Capital
work-in-progress |
297.800 |
379.200 |
341.742 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(v)
Tangible Assets held for Disposal |
0.000 |
0.000 |
5.134 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
692.000 |
948.800 |
911.245 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
2691.900 |
2842.600 |
2500.806 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
2397.300 |
2108.800 |
1938.427 |
|
(c) Trade receivables |
930.600 |
686.700 |
622.282 |
|
(d) Cash and cash
equivalents |
1668.200 |
1167.100 |
731.497 |
|
(e) Short-term loans and
advances |
2356.600 |
3464.900 |
2406.131 |
|
(f) Other current assets |
22.900 |
163.600 |
132.406 |
|
Total Current Assets |
7375.600 |
7591.100 |
5830.743 |
|
|
|
|
|
|
TOTAL |
10067.500 |
10433.700 |
8331.549 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.06.2013 |
30.06.2012 |
30.06.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
14377.200 |
12329.000 |
10583.789 |
|
|
|
Other Income |
365.500 |
337.100 |
320.358 |
|
|
|
TOTAL (A) |
14742.700 |
12666.100 |
10904.147 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Raw and Packing Materials Consumed |
3079.300 |
2479.200 |
2678.961 |
|
|
|
Purchases of Stock-in-Trade |
3824.900 |
3249.000 |
1954.430 |
|
|
|
Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade |
(216.400) |
(242.000) |
(314.052) |
|
|
|
Employee Benefits Expense |
786.500 |
771.500 |
632.891 |
|
|
|
Other Expenses |
5572.500 |
4999.700 |
4413.938 |
|
|
|
TOTAL (B) |
13046.800 |
11257.400 |
9366.168 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (A-B) (C) |
1695.900 |
1408.700 |
1537.979 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES (D) |
0.200 |
0.100 |
0.126 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1695.700 |
1408.600 |
1537.853 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
313.200 |
238.900 |
198.138 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
1382.500 |
1169.700 |
1339.715 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
510.900 |
412.400 |
478.179 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H) (I) |
871.600 |
757.300 |
861.536 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2941.200 |
2942.800 |
2825.534 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend to Equity Shareholders @ Rs. 15 per share |
488.800 |
488.800 |
488.778 |
|
|
|
Corporate tax on proposed dividend |
83.100 |
79.300 |
79.292 |
|
|
|
Transfer to Contingency Reserve |
125.000 |
115.000 |
90.000 |
|
|
|
Transfer to General Reserve |
87.200 |
75.800 |
86.200 |
|
|
BALANCE CARRIED
TO THE B/S |
3028.700 |
2941.200 |
2942.8000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Exports of goods calculated on F.O.B. basis (excludes Rupee exports to Nepal and Bhutan Rs. 28.500 Millions [Previous year: Rs. 56.700 Millions]) |
183.100 |
147.500 |
450.111 |
|
|
|
Others (freight, insurance etc.) |
7.500 |
5.000 |
11.877 |
|
|
TOTAL EARNINGS |
190.600 |
152.500 |
461.988 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1456.800 |
1075.300 |
1743.313 |
|
|
|
Spare Parts |
70.100 |
42.700 |
48.736 |
|
|
|
Capital Goods |
197.100 |
323.000 |
314.282 |
|
|
TOTAL IMPORTS |
1724.000 |
1441.000 |
2106.331 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
26.75 |
23.24 |
26.44 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.09.2013 |
|
Type |
|
|
1st
Quarter |
|
Net Sales |
|
|
3876.000 |
|
Total Expenditure |
|
|
3688.300 |
|
PBIDT (Excl OI) |
|
|
187.700 |
|
Other Income |
|
|
132.600 |
|
Operating Profit |
|
|
320.300 |
|
Interest |
|
|
0.100 |
|
Exceptional Items |
|
|
0.000 |
|
PBDT |
|
|
320.200 |
|
Depreciation |
|
|
81.300 |
|
Profit Before Tax |
|
|
238.900 |
|
Tax |
|
|
87.500 |
|
Provisions and contingencies |
|
|
0.000 |
|
Profit After Tax |
|
|
151.400 |
|
Extraordinary Items |
|
|
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
151.400 |
KEY RATIOS
|
PARTICULARS |
|
30.06.2013 |
30.06.2012 |
30.06.2011 |
|
PAT / Total Income |
(%) |
5.91
|
5.98 |
7.90 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
9.62
|
9.49 |
12.66 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
14.15
|
11.63 |
16.78 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.21
|
0.19 |
0.22 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.00
|
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.11
|
1.82 |
2.57 |
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 |
No |
|
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 |
No |
CURRENT MATURITIES OF
LONG TERM DEBTS: NOT AVAILABLE
INDEX OF CHARGES: NO
CHARGES EXIST FOR COMPANY
LITIGATION
DETAILS
RAJASTHAN HIGH COURT BENCH JAIPUR
|
Ita ‘253’ OF
2012 – R |
|
|
Petitioner: |
CIT ALWAR |
|
Respondent: |
GILLETTE INDIA
LIMITED |
|
Petitioner
Advocate: |
PARINITOO JAIN |
|
Respondent
Advocate: |
SANJAY JHANWAR |
|
Class Code :
1303 |
Registered on :
22/11/2012 |
CORPORATE INFORMATION
The Company is a public company incorporated under the provisions of the Companies Act, 1956. The company is engaged in manufacturing and selling of branded packaged fast moving consumer goods in the grooming, portable power and oral care businesses. The company’s products are sold through retail operations including mass merchandisers, grocery stores, membership club stores, drug stores, department stores and high frequency stores. The Company has its manufacturing locations at Bhiwadi in Rajasthan and Baddi in Himachal Pradesh, apart from third party manufacturing locations spread across India.
PERSONAL GROOMING-
BLADES AND RAZORS
Gillette Personal Grooming portfolio had a strong year with high double digit growth combined with market share growth across Blades and Razors and Personal Care category. This was driven by robust performance across all product and price tiers through base-brand building activities and expanding their product offering.
Fusion Power is Gillette’s latest introduction in premium-tier Blades and Razors segment. The batterypowered razor adds to the features of the Gillette Fusion manual razor with power-glide blades and soothing micro-pulses, thus, providing consumers with a superior shaving experience.
Their premium line of systems registered strong performance with both Mach3 and Fusion, delivering double digit growth behind strong razor placement, and, Go-to-Market plans and innovative marketing campaigns like “Soldier for Women” and “Shave India” movement through the Financial Year.
Gillette “Soldier for Women”, a unique initiative by the Company was launched in January, 2013. This initiative encouraged and gave voice to millions of men who embrace the values of courage, camaraderie, integrity and respect for women. Gaining support from across cities and people from different walks of life, the campaign went on to become a national movement, reaching out to millions of men and women across the country.
Gillette Guard, the Entry Level system, which was specially designed for low-income group consumers, continued to register strong double digit growth by value and volume. Gillette Guard has had the fastest-ever build of share and distribution across categories in India and is now present in over 1 million stores across the country.
Gillette Double edge blades continued to grow valueshare primarily led by its 7-o’clock and WilkinsonSword brands.
The Gillette Personal Care Category comprising of pre-shave and post-shave products has performed exceptionally well and grown share across the portfolio led by Tube Shave Gel. It helped further strengthen their position versus competition in the pre-shave category.
Thus, the Company continued to grow across the portfolio through the Financial Year.
Gillette India wins PR Lion at Cannes Ad Fest:
The Company’s campaign “Shave or Crave” as part of the “Shave India Movement” has won a PR Lion at the Cannes ad festival this Financial Year. This is the fifth year in a row, that Gillette’s marketing campaign has been recognized at this prestigious global forum.
ORAL CARE
Oral-B continues to grow across all tiers. Initiatives focused on establishing superiority of Cross Action helped Oral-B grow in the super premium tier segment. Oral-B has led innovation this year launching two new technologically superior products – Top of the line manual brush called ‘Pro-health Clinical’ and ‘Allrounder-Sensitive’. The sensitive toothbrush market is growing at more than 50% and Allrounder-Sensitive is specifically designed and suited to the needs of the Indian market. Oral-B 123 continues to lead their growth in the premium tier by providing superior propositions to the consumers. Dedicated TV initiatives on Oral-B Shiny Clean along with strong plans to drive deeper distribution further helped strengthen Oral-B’s position in the midtier segment. Multiple initiatives were undertaken to expand Oral-B distribution, which resulted in the brand being available to more consumers across India.
Oral-B, which is the World’s No. 1 dentist recommended toothbrush brand, (Based on surveys of a representative worldwide sample of Dentists carried out for P&G) continued its partnership with dentists across India, to promote oral health awareness for yet another year through its Oral-B Smile India Movement-3 initiative. This campaign helped in improving the lives of consumers by educating them on oral hygiene and by offering them a free dental checkup close to their residence simply on the purchase of an Oral-B toothbrush.
After years of growth and delighting the consumers with superior brushing experience, Oral-B has launched its revolutionary toothpaste technology to the Indian consumers during the last quarter of the Financial Year. Oral-B has launched 3 tiers of toothpaste in both Gel and Paste form in the Rs. 6,0000.000 Millions toothpaste market. This has been very well received by dentists and retailers in the month of June, 2013. The marketing and promotional expenses in this highly competitive category will begin in July, 2013 and will impact near term earnings growth.
PORTABLE POWER
For the Financial Year 2012-2013, Duracell has achieved robust sales growth due to successful price up helping in earnings improvement behind volume growth and higher pricing.
Duracell has increased the scope by shifting the communication from only high drain device to everyday use device like Torch. This has helped them to increase the scope of target audience. In the coming future, Duracell will continue to outperform the category focusing on everyday device consumers in need of superior performance, whilst continuing to service “Aspiring Indian” consumers who seek value for money from the battery.
MANUFACTURING
During the Financial Year, the Bhiwadi and Baddi plants continued to perform at record levels and delivered all time high throughputs. In the past years, both Bhiwadi and Baddi plants achieved benchmark productivity improvements. Work System Renewal related changes have been initiated which is expected to enhance long term people capability to continue to meet the business needs. The plants delivered outstanding performance in all key measures — Safety, Quality and Cost.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT, 2013
Review of Economic
Scenario and impact of Union Budget 2013
The Indian economy continues to grow across sectors including growth across consumer segments. GDP growth has tapered down to mid single digits, significantly lower than the past. The economy has entered a volatile phase with a weak rupee, relatively high inflation and a stronger Global economy providing alternative sources of investment to FIIs. However, we expect that the Indian consumer sector will continue to grow at a modest pace and the ability to recover the impact of devaluation/ high inflation will largely depend on the strength of the brand, the value it brings to the consumer.
The Union Budget 2013-14 is forward looking and recognizes the risks faced by the economy while still committed to contain the Fiscal Deficit to 4.8% of GDP. The increase in Direct Tax rate from 32.45% to 33.99% would result in additional direct cost to the Company.
The FMCG Sector and
Indian consumers
The Indian FMCG sector is the fourth largest in the Indian economy and has a market size in excess of $13.1 billion. The sector is growing at a healthy pace due to increase in penetration, wider distribution and better consumer value. We have strong Indian companies and a few Multinationals operating in this area offering a wide
array of products to the Indian consumer. With growing incomes and changing consumption patterns, we expect growth to continue at a modest pace. Margins for the sector could be volatile due to macro economic factors discussed earlier and a strong competitive environment.
BUSINESS REVIEW:
MALE GROOMING —
BLADES and RAZORS
The Directors are of the view that the Blades and Razors sector is a big category and represents a sizable growth opportunity for the Company. According to market research data, the Blades and Razors market alone is estimated at over Rs. 14000.000 Millions and about 5.5 billion units in size.
ORAL CARE
The Oral Care category presents unique opportunities and challenges in India. Manual toothbrushes are a key part of Oral Hygiene with opportunity for better penetration and trade-up.
Manual toothbrushes continue to be predominant in the Oral Care market in India. According to market research data, the toothbrush market is estimated at over Rs. 12000.000 Millions and growing at a rate of 10% per year. The Company is now entering the toothpaste market which presents unique growth opportunities but will require significant investment.
PORTABLE POWER
The growing usage in the high and mid drain devices like toys and cameras and increased purchasing power in India indicate a good potential in the coming years for alkaline batteries and thus for Duracell.
OUTLOOK AND
OPPORTUNITIES
The Indian economy presents significant opportunity with a growing population, category whitespace and rising incomes. However, high inflation, supply bottlenecks and intense competition constrain margin growth in the near term. The Company carefully studies these trends and makes timely choices to balance sales, shares and margins.
CONTINGENT
LIABILITIES (AS ON 30.06.2013):
(Rs. In Millions)
i) In respect of Income Tax demands for which the company has preferred appeals with appropriate authorities – Rs. 416.000 Millions (Previous year: Rs. 542.800 Millions). The contingent liability is in respect of matters related to: Income tax dispute on inventory write-off, allowability of losses carried forward from merged entities and others.
ii) In respect of Sales tax matters for which the company has preferred appeals with appropriate authorities — Rs. 113.500 Millions (Previous year: Rs. 223.700 Millions). The contingent liability is in respect of matters related to: non submission of “C” Forms/“F” Forms Rs. 58.500 Millions (Previous year: Rs. 160.900 Millions) and others Rs. 55.000 Millions (Previous year: Rs. 62.900 Millions).
iii) In respect of Excise, Service Tax and Customs matters for which the company has preferred appeals with appropriate authorities — Rs. 1629.200 Millions (Previous year: Rs. 1330.300 Millions). The contingent liabilities are in respect of denial of excise duty benefits at excise exempt location Rs. 994.300 Millions (Previous year: Rs. 826.500 Millions) out of which the Company has a right to claim Cenvat credit of Rs. 601.700 Millions (Previous year: Rs. 499.300 Millions); denial of Cenvat credit Rs. 316.100 Millions (Previous year: Rs. 316.100 Millions); service tax matters Rs. 136.100 Millions (Previous year : Rs. 5.000 Millions); Customs valuation disputes Rs. 152.800 Millions (Previous year: Rs. 152.800 Millions) and others Rs. 29.900 Millions (Previous year: Rs. 29.900 Millions).
iv) In respect of counter guarantees given to bank against guarantees given by bank Rs. 329.100 Millions (Previous year: Rs. 165.200 Millions). At the request of the Company, its bankers have issued guarantees to government bodies and third parties for performance obligation under various commercial agreements. The Company has issued counter guarantees to the banks in respect of these guarantees.
v) In respect of other claims Rs. 13.500 Millions (Previous year: Rs. 38.200 Millions). The Company is a party to various legal proceedings in the normal course of business.
vi) In respect of Demand raised by Delhi Development Authority towards interest on belated payment of Unearned
Increase in respect of leasehold land charges Rs. 342.400 Millions (Previous year: Rs. 39.500 Millions).
vii) Other commitments of Rs. 5.000 Millions (Previous year: Rs. 45.000 Millions) (Payable to a Contract Manufacturer towards commitment charges). Future Cash Flow in respect of the above, if any, is determinable only on receipt of judgements/decisions pending with the relevant authorities. The Company does not expect the outcome of matters stated in (i) to (vi) above to have a material adverse effect on the Company’s financial condition, results of operations or cash flows.
FIXED ASSETS
v
Tangible
Assets
Land
- Freehold Land
Land
- Leasehold Land
Buildings
Plant,
Machinery and Equipment
Furniture
and Fixtures
Office
Equipment
Motor
Vehicles – Forklifts
Moulds
and Dies
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.61.94 |
|
|
1 |
Rs.102.06 |
|
Euro |
1 |
Rs.84.31 |
INFORMATION DETAILS
|
Information
Gathered by : |
HNA |
|
|
|
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
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 |
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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
66 |
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.