MIRA
INFORM REPORT
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Report Date : |
15.07.2014 |
IDENTIFICATION DETAILS
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Name : |
MARICO LIMITED |
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Registered
Office : |
7th Floor, Grande Palladium, 175, |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
13.10.1988 |
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Com. Reg. No.: |
11-049208 |
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Capital
Investment / Paid-up Capital : |
Rs.644.900 Millions |
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CIN No.: [Company Identification
No.] |
L15140MH1988PLC049208 |
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Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturing and Sale of Consumer Products. |
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No. of Employees
: |
Information Declined by the management |
RATING & COMMENTS
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MIRA’s Rating : |
Aa (72) |
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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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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a leading manufacturer of coconut oil, hair oils, and
premium refined edible oils in consumer packs. It is a well-established and reputed
company having fine track record. The rating reflects Marico’s established market presence in the hair
care, health care and male-grooming segments in India supported by healthy
operating efficiency, strong liquidity position and decent profitability
levels of the company. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INDIAN ECONOMIC OVERVIEW
N E W S
The economy grew 4.7 %in 2013/14, marking a
second straight year of sub-5 % growth – the worst slowdown in more than a
quarter of a century. The data was below an official estimate of 4.9 % annual
growth and compared with 4.5 % in the last fiscal year. However, the current
account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic
product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year
before.A sharp fall in gold imports due to restrictions on overseas purchases
and muted import of capital goods helped shrink the current account deficit.
Online retailer Flipkart has acquired fashion
portal Myntra as it prepares to battle with the rapidly expanding India arm of
the global e-commerce giant Amazon. The company raised $ 210 million from
Russian Investment firm DST Global which has also invested in companies like
Facebook, Twitter and Alibaba Group.
General Motors will start exporting vehicles
from its Talegaon plant near Pune in the second half of 2014. GM was one of the
few global carmakers that was using its India plant only for the domestic
market.
Google has overtaken Apple as the world’s top
brand in terms of value, according to global market research agency Millward
Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top
10 of the 100 slots were dominated by US companies.
Infosys lost another heavy weight when B G
Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit
after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V
Balakrishnan being the other two.While Vemuri went on to lead IGate,
Balakrishnan joined politics.
Naresh Goyal – promoted Jet Airways posted
biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31,
mainly because it has been offering discounts to passengers to fill planes.
William S Pinckney – Chairman and CEO of
Amway India was arrested by the Andhra Pradesh Police in connection with a
complaint against the direct selling firm. This is the second time that he has
been taken into custody. A year, ago the Kerala Police had arrested Pinckney
and two company directors on charges of financial irregularities.
China has told its state-owned enterprises to
sever links with American consulting firms after the United States charged five
Chinese military officers wih hacking US companies. China’s action which
targets consultancies like McKinsey & Co. and the Boston Consulting Group,
sterns from fears that the first are providing trade secrets to the US governments.
India has emerged as a country with some of
the highest unregistered businesses in the world. Indonesia has the maximum
number of shadow businesses, says a study of 68 countries by Imperial College
Business School in London.
Pfizer has abandoned its attempt to buy
AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55
pounds a share.
EXTERNAL AGENCY RATING
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Rating Agency Name |
CRISIL |
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Rating |
Long term rating: “AA+” |
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Rating Explanation |
High degree of safety and very low credit
risk. |
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Date |
14.01.2014 |
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Rating Agency Name |
CRISIL |
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Rating |
Short term rating: “A1+” |
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Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
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Date |
14.01.2014 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED
MANAGEMENT NON-COOPERATIVE. (TEL. NO.: 91-22-66480480)
LOCATIONS
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Registered Office/ Corporate
Office / Head Office : |
7th Floor, Grande Palladium, 175, CST Road, Kalina,
Santacruz (East), Mumbai – 400098, Maharashtra, India |
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Tel. No.: |
91-22-66480480 |
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Fax No.: |
91-22-66490114/ 26500159 |
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E-Mail : |
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Website : |
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Regional Offices : |
Located At: South Ro: 510 and 511, B Block, 5th Floor, Swapnalok Complex, S. D
Road, Secunderabad-500003, Andhra Pradesh, India
West RO : Plot No. 23/C, Mahal Industrial Estate, Mahakali Caves Road, Land Mark : Before Paper Box Factory, Opposite Andhra Bank and Travellers Inn hotel, Andheri (E) Mumbai - 400 093, Maharashtra, India Tel: 91-22-26732439-40, 26732472 Room No 416, 4th floor, Krishna Building, 224 AJC Bose Road, Kolkata -700017, India North RO : Unit No.: JA 1101, 11th Floor, DLF Tower – “A”, Jasola |
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Factories : |
Located At : ·
Kanjikode ·
Pondicherry ·
Jalgaon ·
Paonta ·
Dehradun ·
Goa ·
Baddi · Paonta Sahib · Paldhi · Perundurai |
DIRECTORS
As on 31.03.2014
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Name : |
Mr. Harsh Mariwala |
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Designation : |
Chairman (w.e.f. April 1, 2014) |
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Name : |
Mr. Saugata Gupta |
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Designation : |
Managing Director and Chief Executive Officer (w.e.f.April 1, 2014) |
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Name : |
Mr. Nikhil Khattau |
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Designation : |
Chairman of Audit Committee |
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Name : |
Mr. Rajeev Bakshi |
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Designation : |
Director |
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Name : |
Mr. Atul Choksey |
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Designation : |
Director |
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Name : |
Mr. Anand Kripalu |
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Designation : |
Director |
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Name : |
Mr. Rajendra Mariwala |
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Designation : |
Director |
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Name : |
Ms. Hema Ravichandran |
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Designation : |
Chairman of Corporate Governance Committee |
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Name : |
Mr. B.S. Nagesh |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mrs. Hemangi Ghag |
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Designation : |
Company Secretary |
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Management Team
: · Mr. Ashutosh Telang · Mr. Chaitanya Deshpande · Mr. Jitendra Mahajan · Mr. John Mason · Mr. Mukesh Kripalani · Mr. Phan Quoc Cong · Mr. Sameer Satpathy · Mr. Sridhar B. · Mr. Sudhakar Mhaskar · Mr. Vivek Karve |
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Audit Committee : · Mr. Nikhil Khattau, Chairman · Mr. Rajen Mariwala, Member · Hema Ravichandar, Member · Mr. B. S. Nagesh, Member · Mrs. Hemangi Ghag, Secretary to the Committee · Mr. Harsh Mariwala, Permanent Invitee · Mr. Saugata Gupta, Special Invitee (w.e.f. April 30, 2014) |
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Corporate Governance Committee : · Mrs. Hema Ravichandar, Chairperson · Mr. Rajeev Bakshi, Member · Mr. Anand Kripalu, Member · Mr. B.S. Nagesh, Member · Mr. Ashutosh Telang, Secretary to the Committee · (w.e.f. April 30, 2014) · Mr. Harsh Mariwala, Permanent Invitee · Mr. Saugata Gupta, Special Invitee (w.e.f. April 30, 2014) |
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Stakeholder Relationship Committee: · Mr. Nikhil Khattau, Chairman · Mr. Rajen Mariwala, Member · Mrs. Hemangi Ghag, Secretary to the Committee |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2014
|
Category of
Shareholders |
No. of Shares |
Percentage of Holding |
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(A) Shareholding of Promoter and Promoter Group |
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375205520 |
58.18 |
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8822000 |
1.37 |
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384027520 |
59.55 |
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|
900000 |
0.14 |
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|
900000 |
0.14 |
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Total shareholding of Promoter and Promoter Group (A) |
384927520 |
59.69 |
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(B) Public Shareholding |
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|
9478479 |
1.47 |
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|
105500 |
0.02 |
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|
7127814 |
1.11 |
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|
177682981 |
27.55 |
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|
22058823 |
3.42 |
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|
216453597 |
33.57 |
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|
18288561 |
2.84 |
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|
19981014 |
3.10 |
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|
3453952 |
0.54 |
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|
1768355 |
0.27 |
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|
121833 |
0.02 |
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|
1566522 |
0.24 |
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|
80000 |
0.01 |
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|
43491882 |
6.74 |
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Total Public shareholding (B) |
259945479 |
40.31 |
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Total (A)+(B) |
644872999 |
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) |
644872999 |
0.00 |
Shareholding of securities (including shares, warrants,
convertible securities) of persons belonging to the category Promoter and
Promoter Group
|
Sl.No. |
Name of the
Shareholder |
No. of Shares held |
As a % of grand total (A)+(B)+(C) |
Total shares (including underlying shares
assuming full conversion of warrants and convertible securities) as a % of
diluted share capital |
|
|
|
7,33,76,000 |
11.38 |
11.38 |
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2 |
Harsh C Mariwala With Kishore V Mariwala For Aquarius Family Trust |
7,33,76,000 |
11.38 |
11.38 |
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3 |
Harsh C Mariwala With Kishore V Mariwala For Taurus Family Trust |
7,33,76,000 |
11.38 |
11.38 |
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4 |
Harsh C Mariwala With Kishore V Mariwala For Gemini Family Trust |
7,33,76,000 |
11.38 |
11.38 |
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5 |
Rajvi H Mariwala |
1,31,00,000 |
2.03 |
2.03 |
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6 |
Rishabh H Mariwala |
1,31,00,000 |
2.03 |
2.03 |
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7 |
Archana H Mariwala |
1,23,00,000 |
1.91 |
1.91 |
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8 |
Harsh C Mariwala |
1,14,54,600 |
1.78 |
1.78 |
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9 |
Arctic Investment and Trading Company Private Limited |
87,85,000 |
1.36 |
1.36 |
|
10 |
Ravindra Kishore Mariwala |
65,93,200 |
1.02 |
1.02 |
|
11 |
Harshraj C Mariwala (HUF) |
61,20,000 |
0.95 |
0.95 |
|
12 |
Paula R Mariwala |
37,09,100 |
0.58 |
0.58 |
|
13 |
Anjali R Mariwala |
37,09,100 |
0.58 |
0.58 |
|
14 |
Rajen K Mariwala |
33,68,200 |
0.52 |
0.52 |
|
15 |
Hema K Mariwala |
24,18,540 |
0.38 |
0.38 |
|
16 |
Kishore V Mariwala |
14,83,660 |
0.23 |
0.23 |
|
17 |
Hema K Mariwala |
14,97,600 |
0.23 |
0.23 |
|
18 |
Ravindra K Mariwala |
9,44,620 |
0.15 |
0.15 |
|
19 |
Pallavi C Jaikishen |
9,16,000 |
0.14 |
0.14 |
|
20 |
Malika Chirayu Amin |
9,00,000 |
0.14 |
0.14 |
|
21 |
Preeti Gautam Shah |
9,00,000 |
0.14 |
0.14 |
|
22 |
Rajen K Mariwala |
75,000 |
0.01 |
0.01 |
|
23 |
The Bombay Oil Private Limited |
37,000 |
0.01 |
0.01 |
|
24 |
Kishore V Mariwala |
1,850 |
0.00 |
0.00 |
|
25 |
Kishore V Mariwala |
1,850 |
0.00 |
0.00 |
|
26 |
Kishore V Mariwala |
1,850 |
0.00 |
0.00 |
|
27 |
Kishore V Mariwala |
1,850 |
0.00 |
0.00 |
|
28 |
Ravindra K Mariwala |
4,500 |
0.00 |
0.00 |
|
|
Total |
38,49,27,520 |
59.69 |
59.69 |
(*) The term encumbrance has the same meaning as assigned to it in regulation 28(3) of the SAST Regulations, 2011.
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
|
Sl. No. |
Name of the
Shareholder |
No. of Shares held |
Shares as % of Total No. of Shares |
Total shares (including underlying shares
assuming full conversion of warrants and convertible securities) as a % of
diluted share capital |
|
|
1 |
Arisaig Partners (Asia) Pte Limited A/C Arisaig India Fund Limited |
35353269 |
5.48 |
5.48 |
|
|
2 |
Oppenheimer Developing Markets Fund |
26690028 |
4.14 |
4.14 |
|
|
3 |
Indivest Pte Ltd |
22058823 |
3.42 |
3.42 |
|
|
4 |
National Westminister Bank Plc As Depostitary Of M And G Global Basics Fund A Sub Fund Of M And G Investment |
15000000 |
2.33 |
2.33 |
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5 |
Baring India Private Equity Fund III Listed Investments Limited |
7352941 |
1.14 |
1.14 |
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6 |
National Westminister Bank Plc As Depostitary Of First State Indian Subcontinent Fund A Sub Fund Of First State Investments ICVC |
7402142 |
1.15 |
1.15 |
|
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7 |
Napean Trading And Investment Company Private Limited |
6919819 |
1.07 |
1.07 |
|
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8 |
National Westminister Bank Plc As Depostitary Of First State Indian Subcontinent Fund A Sub fund of first state investments ICVC |
7066389 |
1.10 |
1.10 |
|
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9 |
National Westminister Bank Plc As Depostitary Of First State Asia Pacific Subcontinent Fund A Sub fund of first state investments ICVC |
6832804 |
1.06 |
1.06 |
|
|
10 |
Franklin Templetion Fixed Tenture Fund (FTFTF)- Series XII Plan C |
7329658 |
1.14 |
1.14 |
|
|
11 |
Franklin Templeton Investment Funds |
8500000 |
1.32 |
1.32 |
|
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|
Total |
150505873 |
23.34 |
23.34 |
Shareholding of securities (including shares, warrants,
convertible securities) of persons (together with PAC) belonging to the category
“Public” and holding more than 5% of the total number of shares of the company
|
Sl. No. |
Name(s) of the
shareholder(s) and the Persons Acting in Concert (PAC) with them |
No. of Shares |
Shares as % of
Total No. of Shares |
Total shares (including
underlying shares assuming full conversion of warrants and convertible
securities) as a % of diluted share capital |
|
|
1 |
Arisaig Partners Asia Pte Limited A/c Arisaig India Fund Limited |
35353269 |
5.48 |
5.48 |
|
|
|
Total |
35353269 |
5.48 |
5.48 |
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BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Sale of Consumer Products. |
GENERAL INFORMATION
|
No. of Employees : |
Information Decline by the management |
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Bankers : |
· Axis Bank Limited · Barclays Bank PLC · Citibank N.A. · HDFC Bank Limited · ICICI Bank Limited · Kotak Mahindra Bank Limited · Royal Bank of Scotland N.V. · Standard Chartered Bank · State Bank of India · The Hong Kong and Shanghai Banking · Corporation Limited |
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Facilities : |
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Banking
Relations : |
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Auditors : |
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Name : |
Price Waterhouse Chartered Accountants |
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Cost Auditors : |
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Name : |
Ashwin Solanki and Associates Chartered Accountants |
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Internal Auditors : |
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Name : |
Ernst and Young (w.e.f. April 1, 2012) Chartered Accountants |
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Subsidiary Firm
: |
·
Wind Company. (Through MEL Consumer Care SAE) |
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Others -
Entities in which KMP has significant influence : |
·
The Bombay Oil Private Limited |
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The Kaya Business, earlier
a part of Marico Limited, has been demerged effective October 17, 2013, with April 1, 2013 as
the Appointed Date In accordance with the scheme, following companies are no longer subsidiaries of Marico Limited in the current year: |
· Kaya Limited · Derma – Rx International Aesthetics Pte. Limited (DIAL) · Kaya Middle East FZE (KME) · The DRx Clinic Pte. Limited (DCPL) · The DRx Medispa Pte. Private Limited (DMSPL) · DRx Aesthetics Sdn. Bhd. (DASB) · Marico Kaya Enterprises Limited (MaKe) · DRx Investments Pte. Limited. (DIPL) |
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Subsidiary firm : |
· Wind Company. (Through MELCC) |
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Others – Entities
in which KMP has significant influence and transactions have taken place: |
· The Bombay Oil Private Limited · Marico Kaya Enterprises Limited (w.e.f. April 1, 2013) · Kaya Limited (w.e.f. April 1, 2013) · Derma Rx International Aesthetics PTE Limited (w.e.f. April 1, 2013) · Kaya Middle East FZE (w.e.f. April 1, 2013) |
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1150000000 |
Equity Shares |
Rs.1/- each |
Rs.1150.000 Millions |
|
100000000 |
Preference Shares |
Rs.10/- each |
Rs.1000.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.2150.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
644,872,999 |
Equity Shares |
Rs.1/- each |
Rs. 644.900 Millions |
|
|
|
|
|
NOTE:
Reconciliation of number
of shares
|
|
As at March 31, 2014 |
|
|
Particulars |
Number of shares |
Rs. In Millions |
|
Balance as at the beginning of the year |
644771799 |
64.48 |
|
Shares Issued during the year |
101200 |
0.01 |
|
Shares issued on Preferential allotment basis |
-- |
-- |
|
Balance as at the
end of the year |
644872999 |
64.49 |
Rights, preferences
and restrictions attached to shares :
Equity Shares: The Company has one class of equity shares having a par value of Re. 1 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
Details of shares held by shareholders holding more than 5% of the aggregate shares in the Company
|
|
As at March 31, 2014 |
|
|
Name of Shareholder |
No. of Shares held |
% of Holding |
|
Equity Shares of
Re. 1/- each fully paid-up |
|
|
|
Harsh C Mariwala (As a representative of Valentine Family Trust) |
73376000 |
11.38 |
|
Harsh C Mariwala (As a representative of Aquarius Family Trust) |
73376000 |
11.38 |
|
Harsh C Mariwala (As a representative of Taurus Family Trust) |
73376000 |
11.38 |
|
Harsh C Mariwala (As a representative of Gemini Family Trust) |
73376000 |
11.38 |
|
First State Investments (along with Persons acting in concert) |
51789164 |
8.03 |
|
Arisaig Partners (Asia) Pte Limited |
35353269 |
5.48 |
Shares reserved for
issue under options :
The Corporate Governance Committee of the Board of Directors of Marico Limited had granted Stock Options to certain eligible employees pursuant to the Marico ‘Employees Stock Options Scheme 2007’ (“Scheme”). Each option represents 1 equity share in the Company. The Vesting period and the Exercise Period, both range from 1 year to 5 years. The Scheme is administered by the Corporate Governance Committee comprising Independent Directors. The Scheme closed on February 1, 2013.
During the year, the Company approved Marico Employee Stock Option Scheme 2014 (“Marico ESOS 2014”) for
grant of 300,000 employee stock options to the Chief Executive Officer of the Company, at an exercise price of Re.1 per option. This does not have any impact on current financial statement as the grant date is April 1, 2014.
|
Particulars |
As at March 31, 2014 |
|
Weighted average share price of options exercised |
55.74 |
|
Number of options
granted, exercised, and forfeited |
|
|
Balance as at beginning of the year |
352665 |
|
Granted during the year |
-- |
|
Less : Exercised during the year |
101200 |
|
Forfeited / lapsed during the year |
38865 |
|
Balance as at end
of the year |
212600 |
|
|
|
|
Percentage to
current paid–up equity share capital |
0.03% |
The Company has applied the intrinsic value based method of accounting for determining compensation cost for its stock based compensation plan and has accordingly reversed Rs. Nil (Rs. 0.200 Millio) as compensation cost under the ‘intrinsic value’ method (Refer note 25). Had the Company considered ‘fair value’ method for accounting of compensation cost, the Company’s net income and Basic and Diluted earnings per share as reported would have reduced to the pro–forma amounts as indicated:
(Rs. In Millions)
|
Particulars |
As at March 31, 2014 |
|
Net Profit after tax as reported (Rs. millions) |
5772.200 |
|
Less : Stock–based employee compensation expense (Rs. millions) |
-- |
|
Adjusted pro–forma (Rs. millions) |
5772.200 |
|
Basic earnings per share as reported |
89.500 |
|
Pro–forma basic earnings per share |
89.500 |
|
Diluted earnings per share as reported |
89.500 |
|
Pro–forma diluted earnings per share |
89.500 |
The following assumptions
were used for calculation of fair value of grants:
|
Particulars |
As at March 31, 2014 |
|
Risk–free interest rate – Vest 1 (%) |
6.61% |
|
Risk–free interest rate – Vest 2 (%) |
7.27% |
|
Expected life of options (years) |
5 Years |
|
Expected volatility – Vest 1 (%) |
35.32% |
|
Expected volatility – Vest 2 (%) |
36.92% |
|
Dividend yield |
1.20% |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
644.900 |
644.800 |
614.900 |
|
(b) Reserves & Surplus |
19088.500 |
19269.500 |
10626.300 |
|
(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) |
19733.400 |
19914.300 |
11241.200 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
2515.400 |
3768.300 |
3247.300 |
|
(b) Deferred tax liabilities (Net) |
127.500 |
30.400 |
0.000 |
|
(c) Other long term liabilities |
0.000 |
9.700 |
0.000 |
|
(d) long-term provisions |
0.000 |
0.000 |
53.200 |
|
Total Non-current
Liabilities (3) |
2642.900 |
3808.400 |
3300.500 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
1565.900 |
2793.600 |
2284.200 |
|
(b) Trade payables |
3206.400 |
3100.800 |
2444.700 |
|
(c) Other current liabilities |
3870.700 |
1523.700 |
857.200 |
|
(d) Short-term provisions |
416.500 |
541.900 |
478.800 |
|
Total Current Liabilities
(4) |
9059.500 |
7960.000 |
6064.900 |
|
|
|
|
|
|
TOTAL |
31435.800 |
31682.700 |
20606.600 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
4832.400 |
3227.600 |
2380.800 |
|
(ii) Intangible Assets |
109.000 |
124.700 |
20.100 |
|
(iii) Capital work-in-progress |
20.600 |
1453.400 |
362.200 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
11329.300 |
10870.500 |
4059.100 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
190.800 |
|
(d) Long-term Loan and Advances |
678.200 |
1392.800 |
2358.100 |
|
(e) Other Non-current assets |
1549.200 |
1353.400 |
1231.400 |
|
Total Non-Current Assets |
18518.700 |
18422.400 |
10602.500 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
2338.300 |
2294.200 |
2662.600 |
|
(b) Inventories |
6639.600 |
7089.800 |
5300.400 |
|
(c) Trade receivables |
1484.500 |
1238.500 |
1010.400 |
|
(d) Cash and cash equivalents |
1289.500 |
220.300 |
322.600 |
|
(e) Short-term loans and advances |
896.300 |
2334.100 |
544.600 |
|
(f) Other current assets |
268.900 |
83.400 |
163.500 |
|
Total Current Assets |
12917.100 |
13260.300 |
10004.100 |
|
|
|
|
|
|
TOTAL |
31435.800 |
31682.700 |
20606.600 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
36824.900 |
34071.000 |
29653.500 |
|
|
|
Other Income |
2343.800 |
502.000 |
516.500 |
|
|
|
TOTAL (A) |
39168.700 |
34573.000 |
30170.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
18421.600 |
17600.900 |
16719.200 |
|
|
|
Purchases of stock-in-trade |
1384.200 |
2026.100 |
1063.300 |
|
|
|
Changes in inventories of finished goods, work-in-progress and stock-in-trade - (Increase) / decrease |
241.500 |
(1327.000) |
(400.200) |
|
|
|
Employee benefits expenses |
1713.400 |
1556.900 |
1262.100 |
|
|
|
Other expenses |
9468.900 |
8993.100 |
6934.500 |
|
|
|
Exceptional items |
0.000 |
(465.000) |
0.000 |
|
|
|
TOTAL (B) |
31229.600 |
28385.000 |
25578.900 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
7939.100 |
6188.000 |
4591.100 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
304.300 |
436.800 |
283.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
7634.800 |
5751.200 |
4307.700 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
462.000 |
331.300 |
314.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
7172.800 |
5419.900 |
3992.800 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1400.600 |
1129.000 |
626.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
5772.200 |
4290.900 |
3365.900 |
|
|
|
|
|
|
|
|
|
|
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
11628.400 |
8354.300 |
6025.200 |
|
|
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
577.200 |
429.100 |
337.000 |
|
|
|
Transfer to Debenture Redemption Reserve |
208.600 |
213.000 |
200.000 |
|
|
|
Equity dividend |
2579.400 |
322.400 |
430.000 |
|
|
|
Tax on Equity dividend [net of tax on dividend received from a foreign subsidiary of Rs. 344.700 Millions (Previous year Nil)] |
93.700 |
52.300 |
70.000 |
|
|
BALANCE CARRIED
TO THE B/S |
13941.700 |
11628.400 |
8354.100 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB value of exports |
1627.600 |
1385.900 |
1923.500 |
|
|
|
Royalty |
67.800 |
60.800 |
76.200 |
|
|
|
Dividend |
2029.900 |
187.100 |
198.900 |
|
|
|
Interest |
14.900 |
41.000 |
40.900 |
|
|
|
Corporate guarantee income |
7.400 |
7.000 |
7.700 |
|
|
TOTAL EARNINGS |
3747.600 |
1681.800 |
2247.200 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw materials |
1400.000 |
1492.200 |
1318.900 |
|
|
|
Packing materials |
54.600 |
11.800 |
22.000 |
|
|
|
Capital goods |
35.900 |
3.600 |
11.700 |
|
|
|
Stock - in - trade (Traded goods) |
13.700 |
1.500 |
10.900 |
|
|
TOTAL IMPORTS |
1504.200 |
1509.100 |
1363.500 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
8.95 |
6.69 |
5.48 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
14.74 |
12.41 |
11.16 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
19.48 |
15.91 |
13.47 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
33.71 |
27.99 |
24.96 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.36 |
0.27 |
0.36 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.21 |
0.32 |
0.49 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.43 |
1.67 |
1.65 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
614.900 |
644.800 |
644.900 |
|
Reserves & Surplus |
10626.300 |
19269.500 |
19088.500 |
|
Net
worth |
11241.200 |
19914.300 |
19733.400 |
|
|
|
|
|
|
long-term borrowings |
3247.300 |
3768.300 |
2515.400 |
|
Short term borrowings |
2284.200 |
2793.600 |
1565.900 |
|
Total
borrowings |
5531.500 |
6561.900 |
4081.300 |
|
Debt/Equity
ratio |
0.492 |
0.330 |
0.207 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
29653.500 |
34071.000 |
36824.900 |
|
|
|
14.897 |
8.083 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
29653.500 |
34071.000 |
36824.900 |
|
Profit |
3365.900 |
4290.900 |
5772.200 |
|
|
11.35% |
12.59% |
15.67% |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG-TERM DEBT DETAILS:
|
Particulars |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
Current maturities of long–term debt |
1539.000 |
662.800 |
190.800 |
|
|
|
|
|
|
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 |
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
CASE DETAILS
BENCH:-BOMBAY
|
|
Presentation Date:- |
13/06/2014 |
|||
|
|
Lodging No.:- |
ITXAL/1154/2014 |
Filing Date:- |
13/06/2014 |
|
|
|
Petitioner:- |
THE COMMISSIONER OF INCOME
TAX-9 |
Respondent:- |
MARICO LIMITED |
|
|
Petn.Adv.:- |
TEJVEER SINGH MASTAN SINGH |
Resp.Adv.:- |
Ashok boghani and Company |
|
|
District:- |
MUMBAI |
|
|
Bench:- |
DIVISION |
|
|
|
|
Status:- |
Pre-Admission |
Category:- |
TAX APPEALS |
|
|
Last Date:- |
20/06/2014 |
Stage:- |
|
|
|
Last Coram:- |
REGISTRAR(OS)/PROTHONOTARY & SR.
MASTER |
|
|
Act :- |
Income Tax Act, 1961 |
Under Section:- |
260A |
MANAGEMENT DISCUSSION
AND ANALYSIS
INDUSTRY STRUCTURE
AND DEVELOPMENT
While the long term drivers of India’s consumption story continue to remain robust given its large population and demographic profile, the last financial year was challenging. Slowing GDP growth and sustained inflationary pressure acted as a catalyst to temporarily hinder corporate earnings growth momentum, i.e. as consumers lose confidence in future income, they decrease consumption.
Muted wage growth coupled with double digit inflation is putting pressure on real wage growth. This has an adverse impact on urban middle income consumption. The trend in rural wage growth is not looking good as well; with growth in rural real wages tapering from 13.7% in December 2011 to 2.2% in August 2013 One percent rise in GDP roughly adds 1.5 million direct jobs, each job creates three indirect jobs, and each job supports five people. This means 30 million people are impacted by one percent growth. The 4 percentage point decline in GDP over the last 3 years has therefore impacted earnings (and consumption) of approximately 120million people.
Growth moderation, high inflation, negative real wage inflation and lack of employment generation have hurt consumer sentiment. Rising inflation and negative real wage inflation imply greater share of wallet going towards non-discretionary items, hence less money to spend on discretionary consumer goods.
Although key economic indicators worsened in the past 3 years, demographic and social indicators have seen improvement. All India literacy rates have hit new highs and population growth rate, although higher than the global average, has slowed significantly. With improvement in economic growth and slowing population growth, the country’s per capita income is expected to rise further. Per capita disposable income in India has been growing at c.13% since 2005 which is higher than the average CPI inflation of c.9%. This has resulted in spending on discretionary categories increasing substantially. It has also enabled consumers to upgrade to premium products.
Urbanization remains India’s driving force and a key engine of growth acceleration in the past decade. India’s urban sector presently contributes c.63% of India’s GDP (from 45% in 1990). It is estimated that this contribution could go up to 70- 75% of GDP by 2020. Government focus on urban infrastructure and organized sector jobs would result in the revival of urban sector.
Urbanization has a direct impact on discretionary spends of consumers. Discretionary consumption is in its infancy in India. India’s per capita consumption in most discretionary categories is less than 25% of the emerging market average, and the share of unorganised/local brands is more than 60% in most categories. Besides rising incomes, structural drivers like nuclear families, the number of working women and aspirations aid growth in discretionary spends.
Favorable demographics are one of India’s key, sustainable, long-term advantages. A young population is at the heart of India’s demographic dividend. Thus, although the share of working-age population in total population has peaked in most developed and many developing countries, in India, it will continue to rise until 2035. Such a demographic situation generally brings a surge in economic growth as gains to society from those in the productive age far outweigh the burden of supporting the old and the very young. The rising share of young population will support the uptick in domestic consumption and household savings. Both of these are already large components of the economy and they result in growth being domestically driven. This will be a key driver of India’s long-term growth despite the current downturn. The dividend typically adds two percentage points to per capita GDP growth per year, as many economically successful countries have demonstrated in the past. Rural India continues to remain a huge opportunity for consumer companies in India. Over the past decade, the government has stepped up its spending in rural areas leading to double digit growth in per capita income in rural India. The total government spending in rural India increased to INR 800 billion in 2014 from INR 290 billion in 2008. Minimum support price (announced by the government) for various commodities is up c.3x in 2007-2013. Higher disposable income in rural has led to consistent outperformance of rural consumption growth as compared to urban. However, future growth in rural spends might not match up to the historical trends. Growth in rural is expected to now come from expanding distribution networks. There is a lot to be optimistic about the long term potential of the consumer sector in India. In spite of the near term difficulties, the fundamentals of the Indian economy are robust.
BANGLADESH
FY14 was a challenging year for Bangladesh. Post the general elections, political situation and economic sentiments have started to ease, thereby sending positive signals to the business environment. However the political uncertainty continues to some degree. Inflation rate increased during the year mainly due to increasing food inflation on account of supply disruptions and wage increases. The International Monetary Fund (IMF) has reduced the estimated growth rate for Bangladesh’s economy for FY14 to 5.4% as compared to 6% last year. BDT has remained strong against USD as the country’s forex reserve crossed USD 20 billion mark for the first time in history.
Like India, Bangladesh promises substantial long term potential in terms of socio-economic growth. The country has a demographic profile very similar to that of India. A population in excess of 160 million and a developing economy provide the perfect consumer base for the FMCG sector to flourish.
MIDDLE EAST AND NORTH
AFRICA (MENA)
Middle East offers a curious mix of local and expatriate population. This provides FMCG companies opportunities to offer branded solutions tailored to the needs of the consumer in the region. Dubai’s economic outlook remains bullish over the coming years as a whole host of sectors possess significant growth prospects. Real GDP for Dubai is forecasted at 4.3% in 2014 and 4.5% in 2015 on the back of tourism, real estate and retail sectors. GDP growth in KSA is forecasted to be at 3.4% spurred by sustained domestic demand and government’s ongoing infrastructure spending. Retail sales are set to benefit over the years from structural factors, including rising disposable income, favorable demographics, and increasing urbanization.
The Egyptian economy has embraced liberalization in the recent past, thereby opening the doors to foreign direct investment and paving the path to economic growth. However, higher inflation levels and deteriorating foreign currency reserves along with the unstable political situation poses a threat to economic growth of the country. GDP growth has toppled from around 7% in 2006 to expected 1.5% for the year.
A steadily growing population and a developing economy provide a good base for FMCG companies. Penetration levels in hair grooming and skin care products are modest. Egypt also offers a gateway to North African countries such as Algeria, Libya and Morocco. Our outlook on the long term trends in demand for personal care products in the MENA region remains positive.
VIETNAM
Vietnam is one of the fastest growing countries in South East Asia, with a GDP growth of about 6%. In 2013, the GDP growth was at 5.4%, lower than estimated 6.3%. The demographics of the country are very promising, with an extremely young population providing an opportunity for FMCG companies to grow rapidly. The country is in the period of integrating into the world’s economy, as part of globalization.
SOUTH AFRICA
The South African economy is the second largest in Africa behind Nigeria and accounts for 24% of its GDP in terms of purchasing power parity. High levels of unemployment and inequality are considered to be the most salient economic problems facing the country. The long-term potential growth rate of South Africa has been estimated at 3.5%.
However in the near term, South African economy is expected to remain below potential on higher inflation and interest rates, depreciating currency and subdued domestic demand. In FY14 the household consumption expenditure was contained by slower income growth, high inflation and lower wage payments. In spite of the near term challenges, South Africa offers a unique opportunity in ethnic hair care and grooming. The country also forms a gateway to the rest of sub-Saharan Africa. Africa is the fastest growing region after China and India, boasting unexploited mineral wealth, 60% of the world’s uncultivated agricultural land and the youngest age profile of any continent.
OUTLOOK
Marico has positioned itself, strategically, in the Developing and Emerging (D and E) markets of Asia and Africa. Most of these markets have large populations with growing GDP’s where affluence is expected to continue to rise and segments where Marico participates hair care, body care, skin care and health foods are under-penetrated. The Company believes that in D and E markets, focus on the long term is crucial. Long term success can be ensured only through stronger brands that enjoy loyal consumer franchises. The Company has therefore chosen to prioritize expansion of consumer franchise over expansion of margins. The unified Domestic and International FMCG business will aim at leveraging the synergies in portfolio unlocking, efficiencies in supply chain and talent mobilization in the medium term. Here is a broad outline of Marico’s strategies and the expected outcome for its various businesses:
The Company and
nature of its operations:
Subject headquartered in Mumbai, Maharashtra, India, carries on business in branded consumer products. Marico manufactures and markets products under brands such as Parachute, Nihar, Saffola, Hair and Care, Revive, Mediker, Livon and Set–wet etc. Marico’s products reach its consumers through retail outlets serviced by Marico’s distribution network comprising regional offices, carrying and forwarding agents, redistribution centers and distributors spread all over India.
UNSECURED LOAN
|
PARTICULARS |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
in Millions) |
|
Long-term
Borrowings |
|
|
|
Debentures |
0.000 |
1000.000 |
|
Short-term
borrowings |
|
|
|
From banks: |
|
|
|
Buyers' credit in foreign currency (These borrowings are for a term of twelve months from the date of shipment of goods and carry interest rate of LIBOR plus applicable spread, ranging from 0.50% to 1.50% per annum (Previous year 0.05% to 1.50% per annum)). |
179.700 |
178.200 |
|
Pre–shipment credit in foreign currency Nil (These borrowings were for a term of six months and carried interest rate of LIBOR plus applicable spread, ranging from 1.30% to 2% per annum). |
0.000 |
597.100 |
|
Export Packing credit (These borrowings are for a term of one month to eight months and carry interest rate of Bank Base rate plus applicable spread less interest subvention, ranging from 7.00% to 7.45% per annum (Previous year Nil)). |
50.000 |
0.000 |
|
Other term loans in foreign currency Nil (Previous year loans have been availed for a term of 12 months and carry interest rate of 3 months LIBOR plus spread of 2.3% per annum). |
0.000 |
542.800 |
|
Cash credit |
824.500 |
923.100 |
|
From others : |
|
|
|
Commercial papers Nil (Commercial papers were borrowed for a term of 12 months and carried interest rate ranging from 8% to 10% per annum.) |
0.000 |
450.000 |
|
Less: Deferred interest |
0.000 |
-25.000 |
|
Total |
1054.200 |
3666.2 |
|
NOTE: LONG-TERM
BORROWINGS 1,000, Rated, Listed Unsecured, Zero Coupon Redeemable Non–convertible debentures of face value of Rs. 10,00,000/– each Nil (The above debentures were issued on February 22, 2013 at Par and are redeemable at premium after 3 years from the date of issue i.e. by February 22, 2016 with a put/ call option at the end of 2 years i.e. February 20, 2015. The debentures are listed on National Stock Exchange. The yield on redemption is 8.95% p.a, on XIRR basis). Considering the probability of exercing the put/call option on debentures, it has been disclosed under Other current liabilities as current maturities of long term debt. |
||
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION
|
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10294992 |
07/05/2012 * |
2,466,990,000.00 |
HSBC BANK (MAURITIUS) LIMITED |
HSBC CENTRE, 18, CYBERCITY, EBENE, - 000000, MAURITIUS |
B40158875 |
|
2 |
10020050 |
02/11/2010 * |
2,930,000,000.00 |
STATE BANK OF INDIA |
CORPORATE ACCOUNTS GROUP BRANCH, NEVILLE HOUSE, J. N. HEREDIA MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA |
A99405300 |
* Date of charge modification
CONTINGENT
LIABILITIES:
(Rs. in millions)
|
Particular |
31.03.2014 |
|
Disputed tax demands / claims : |
|
|
Sales tax |
288.300 |
|
Income tax |
415.000 |
|
Customs duty |
4.000 |
|
Agricultural produce marketing cess |
96.900 |
|
Employees state insurance corporation |
1.800 |
|
Excise duty on subcontractors |
5.400 |
|
Service Tax |
1.700 |
|
Excise duty on CNO dispatches |
4432.300 |
|
Claims against the Company not acknowledged as debts. |
1.900 |
|
Corporate guarantees given to banks on behalf of group companies for credit and other facilities granted by banks. (Credit and other facilities availed by the subsidiaries as at the year-end – Rs. 6.700 Millions Crore (Rs. 707.700 Millions) |
80.00 |
|
Stand by Letter of Credit issued by the Company's banks on behalf of subsidiaries for credit and other facilities granted by banks. (Credit and other facilities availed by the subsidiaries as at the year end – Rs. 1199.500 Millions (Rs. 815.600 Millions)) |
1292.400 |
|
Letter of credit |
233.900 |
|
Total |
6853.600 |
It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings.
NOTE:
This contingent liability pertains to a possible excise duty obligation in respect of pure coconut oil packs up to 200 ml. This claim has been contested and a legal opinion in the matter has been obtained. Based on the legal opinion and in its assessment, the management believes that the probability of success in the matter is more likely than not and accordingly, the possible excise obligation has been treated as a contingent liability in accordance with requirements of Accounting Standard (AS) 29 “Provisions, Contingent Liability and Contingent Asset”. The possible excise duty obligation of Rs. 3214.600 Millions (Rs. 2423.200 Millions) for the clearances made after June 3, 2009 (i.e. the date of issue of Board circular) till March 31, 2014 and Rs. 1217.700 Millions (Rs. 1217.700 Millions) for clearances made prior to June 3, 2009 has been disclosed as contingent liability to the extent of the time horizon covered by show cause notices issued by the excise department within the normal period of one year (from the date of clearance) as per the excise laws. The Company will continue to review this matter during the coming accounting periods based on the developments on the outcome in the pending cases and the legal advice that it may receive from time to time.
FIXED ASSETS
Tangible assets
· Freehold land
· Leasehold land
· Buildings
· Plant and equipment
· Furniture and fixtures
· Vehicles
· Office equipment
· Leasehold improvements
Intangible asset
· Trademarks and copyrights
· Computer 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.60.01 |
|
|
1 |
Rs.102.72 |
|
Euro |
1 |
Rs.81.60 |
INFORMATION DETAILS
|
Information
Gathered by : |
HNA |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
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 |
|
72 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this report.
The assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.