MIRA INFORM REPORT
|
Report Date : |
06.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
MERCK
LIMITED |
|
|
|
|
Registered
Office : |
Shiv Sagar Estate 'A', |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.12.2013 |
|
|
|
|
Date of
Incorporation : |
26.04.1967 |
|
|
|
|
Com. Reg. No.: |
11-013726 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.166.000 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L99999MH1967PLC013726 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUME03379F |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACE2616F |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing and Marketing of pharmaceuticals, bulk drugs, fine chemicals and pigments. |
|
|
|
|
No. of Employees
: |
1496 (Approximately) |
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 20920000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is a well-established company having fine track record. The rating takes into account Merck’s healthy financial risk profile
marked by strong presence in Vitamin Therapeutic area and fair 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.
ECGC Country Risk Classification List – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
US investment bank
Goldman Sachs has upgraded its outlook on Indian markets as it expects
positive impact of the election cycle.
India’s economy may
grow 4.7 % in the current financial year, lower than the official estimate of 4.9
%, Fitch Rating said. The global rating agency expects the economy to pick up
in the next two financial years.
Global ratings
agency Standard & Poor said increasing focus by India Inc on lowering debt
is likely to improve their credit profiles.
Singapore (1.1
million Indian tourists in 2012), Thailand (one million), the United Arab
Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred
holidays hotspots for Indians. The total figure is expected to increase to 1.93
million by 2017, according to the latest Eurmonitor international report.
There is a $29.34 bn
outward foreign direct investment by domestic companies between April and
January of 2013/14 which has seen some signs of recovery according to a Care
Ratings report.
There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.
Twitter like
messaging service Weibo Corporation has filed to raise $ 500 million via a US
initial public offering. Alibaba, which owns a stake in Weibo is expected to
raise about $ 15 billion New York this year in the highest profile Internet IPO
since Facebook’s in 2012.
Bharti Airtel has
raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at
a coupon rate of three per cent and maturing in 2020. This is the largest ever
bond offering by an Indian company in Swiss Francs. Bharat Petroleum
Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98
% coupon rate in February.
Indian Oil
Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex
at its almost complete Paradip refinery in Odhisha in three to four years. The
company board is set to consider the setting up of a 700000 tonne per annum
polypropylene plant at an estimated cost at Rs.3150 crore.
Global chief
information officers at gathering in Bangalore in April to meet Indian startups
at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in
the making.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
AA (Fund Based Limits) |
|
Rating Explanation |
High degree of safety and very low credit
risk. |
|
Date |
April, 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 DENIED
Management Non Co-Operative (91-22-66609000)
LOCATIONS
|
Registered Office : |
Shiv Sagar Estate 'A', Dr. Annie Besant Road, Worli, Mumbai-400018,
Maharashtra, India |
|
Tel. No.: |
91-22-24964855 / 24964856 / 56609000 |
|
Fax No.: |
91-22-24950307/ 24950354 / 24954590 / 0354 / 0307 / 24936046 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory : |
Plot No. 11/1, Usgaon, Ponda-403407, |
DIRECTORS
As on: 31.12.2013
|
Name : |
Mr. S. N. Talwar |
|
Designation : |
Chairman |
|
Date of Birth/Age : |
21.11.1937 |
|
Qualification : |
B. Com, L.L.B, Solicitor |
|
Date of Appointment : |
17.01.1984 |
|
|
|
|
Name : |
Dr. Claus-Dieter Boedecker |
|
Designation : |
Managing Director |
|
Date of Birth/Age : |
23.02.1954 |
|
Qualification : |
He holds a Diploma in Chemistry and Doctorate in Natural Sciences (PhD) from the Ruhr University of Bochum, Germany |
|
Experience : |
He is doctorate from Ruhr University in Bochum, Germany in analytical chemistry. Since 1985 Dr. Boedecker is associated with Merck group andhas been working at various senior positions in the group. Immediately prior to joining the Company Dr. Boedecker was working as President and Managing Director, Merck Limited Taiwan and Merck Display Technologies Limited Taiwan |
|
Date of Appointment : |
01.08.2012 |
|
|
|
|
Name : |
Mr. H. C. H. Bhabha |
|
Designation : |
Director |
|
Date of Birth/Age : |
15.12.1955 |
|
Qualification : |
B. Com, F.C.A., A.C.A. (England and Wales) |
|
Date of
Appointment : |
29.12.1986 |
|
|
|
|
Name : |
Mr. E. A. Kshirsagar |
|
Designation : |
Director |
|
Date of Birth/Age : |
10.09.1941 |
|
Qualification : |
B.Sc., FCA (England and Wales), FCA (India) |
|
Experience : |
Corporate Strategy, Valuation, Disinvestment, Mergers and Acquisitions, Govt. Legislation impact on Business |
|
Date of Appointment : |
13.12.2007 |
|
|
|
|
Name : |
Dr. Peter-Ulrich Mannheimer |
|
Designation : |
Director |
|
Date of Birth/Age : |
23.04.1962 |
|
Qualification : |
Business Administration with Technical Engineering at Technical University Darmstadt Degree Dipl. Wirtschaftsingenieur |
|
Experience : |
Company Management, administration and corporate strategy and planning |
|
Date of Appointment : |
01.10.2012 |
|
|
|
|
Name : |
Mr. P. H. Pimplikar |
|
Designation : |
Director |
|
Date of Birth/Age : |
02.10.1959 |
|
Qualification : |
M. Pharm, PGD in Production Management |
|
Experience : |
Production Management |
|
Date of Appointment : |
01.04.2010 |
|
|
|
|
Name : |
Mr. N. Krishnan |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Vikas R. Gupta |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.03.2014
|
Category of
Shareholder |
No. of Shares |
% of No. of
Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
|
|
|
|
8599224 |
51.80 |
|
|
8599224 |
51.80 |
|
Total shareholding
of Promoter and Promoter Group (A) |
8599224 |
51.80 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
1661637 |
10.01 |
|
|
1809 |
0.01 |
|
|
1604640 |
9.67 |
|
|
92829 |
0.56 |
|
|
3360915 |
20.25 |
|
|
|
|
|
|
635273 |
3.83 |
|
|
|
|
|
|
3278840 |
19.75 |
|
|
591089 |
3.56 |
|
|
134041 |
0.81 |
|
|
133885 |
0.81 |
|
|
75 |
0.00 |
|
|
81 |
0.00 |
|
|
4639243 |
27.95 |
|
Total Public
shareholding (B) |
8000158 |
48.20 |
|
Total (A)+(B) |
16599382 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
16599382 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of pharmaceuticals, bulk
drugs, fine chemicals and pigments. |
GENERAL INFORMATION
|
No. of Employees : |
1496 (Approximately) |
|
|
|
|
Bankers : |
|
|
|
|
|
Facilities : |
-- |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
BSR and Company LLP Chartered
Accountants |
|
|
|
|
Investing
Associates : |
|
|
|
|
|
Fellow Subsidiaries
: |
|
CAPITAL STRUCTURE
As on: 31.12.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
18000000 |
Equity Shares |
Rs.10/- each |
Rs.180.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
16599382 |
Equity Shares |
Rs.10/- each |
Rs.166.000
Millions |
|
|
|
|
|
Reconciliation of
number of shares outstanding:
|
Particular |
Number |
Rs. In Millions |
|
Equity shares at the beginning and at the end of the year |
16,599,382 |
166.00 |
Rights, preferences and restrictions attached to equity shares
The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regard to dividends and share in the Company’s residual assets. The equity shares are entitled to receive dividend as declared from time to time. The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion to its share of the paid-up equity capital of the Company. Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable have not been paid.
Failure to pay any amount called up on shares may lead to forfeiture of the shares.
On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining after distribution of all preferential amounts in proportion to the number of equity shares held.
Shares held by
subsidiaries of ultimate holding company
|
Particular |
Number |
Rs. In Millions |
|
Emedia Export Company mbh, Germany |
3,534,559 |
35.4 |
|
Merck Internationale Beteiligungen GmbH, Germany |
3,091,224 |
30.9 |
|
Chemitra GmbH, Germany |
1,973,441 |
19.7 |
|
|
8,599,224 |
86.0 |
Details of
shareholders holding more than 5% of shares
|
Particular |
Number |
% to total shares in the class |
|
Equity shares of Rs. 10 each fully paid up held by - |
|
|
|
Emedia Export Company mbh, Germany |
3,534,559 |
21.3% |
|
Merck Internationale Beteiligungen GmbH, Germany |
3,091,224 |
18.6% |
|
Chemitra GmbH, Germany |
1,973,441 |
11.9% |
|
Life Insurance Corporation of India |
1,202,938 |
7.3% |
|
SBIMF Magnum Sector Fund |
1,160,862 |
7.0% |
|
Particular |
Number |
|
Aggregate number of shares bought back during the period of five years immediately preceeding reporting date |
261842 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.12.2013 |
31.12.2012 |
31.12.2011 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
166.000 |
166.000 |
166.000 |
|
(b) Reserves & Surplus |
5064.300 |
4670.600 |
3934.800 |
|
(c) Money received against
share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
5230.300 |
4836.600 |
4100.800 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities
(Net) |
10.900 |
7.200 |
8.400 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
121.700 |
128.200 |
122.200 |
|
Total
Non-current Liabilities (3) |
132.600 |
135.400 |
130.600 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Trade payables |
368.100 |
397.100 |
290.700 |
|
(c) Other current liabilities |
434.900 |
382.700 |
356.900 |
|
(d) Short-term provisions |
320.200 |
190.900 |
117.200 |
|
Total
Current Liabilities (4) |
1123.200 |
970.700 |
764.800 |
|
|
|
|
|
|
TOTAL |
6486.100 |
5942.700 |
4996.200 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
845.600 |
750.200 |
712.600 |
|
(ii) Intangible Assets |
2.700 |
1.300 |
2.400 |
|
(iii) Capital work-in-progress |
92.300 |
17.500 |
4.300 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
678.300 |
588.800 |
483.300 |
|
(e) Other Non-current assets |
86.500 |
0.000 |
0.000 |
|
Total
Non-Current Assets |
1705.400 |
1357.800 |
1202.600 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
242.900 |
236.400 |
227.400 |
|
(b) Inventories |
1518.200 |
1309.600 |
1130.900 |
|
(c) Trade receivables |
841.200 |
644.200 |
621.800 |
|
(d) Cash and cash equivalents |
1876.900 |
1929.800 |
1132.800 |
|
(e) Short-term loans and
advances |
231.600 |
395.200 |
646.500 |
|
(f) Other current assets |
69.900 |
69.700 |
34.200 |
|
Total
Current Assets |
4780.700 |
4584.900 |
3793.600 |
|
|
|
|
|
|
TOTAL |
6486.100 |
5942.700 |
4996.200 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.12.2013 |
31.12.2012 |
31.12.2011 |
|
|
SALES |
|
|
|
|
|
Income |
7977.800 |
6872.800 |
5895.700 |
|
|
Other Income |
214.500 |
202.000 |
168.800 |
|
|
TOTAL
(A) |
8192.300 |
7074.800 |
6064.500 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
2403.100 |
1794.400 |
1695.400 |
|
|
Purchases of Stock-in-Trade |
1518.400 |
1160.900 |
1131.900 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(291.500) |
34.900 |
(399.500) |
|
|
Employees benefits expense |
1009.600 |
853.000 |
811.000 |
|
|
Other expenses |
2569.500 |
1974.700 |
1933.100 |
|
|
Impairment loss (reversal) |
0.000 |
0.000 |
(142.800) |
|
|
TOTAL
(B) |
7209.100 |
5817.900 |
5029.100 |
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION
AND AMORTISATION (C) |
983.200 |
1256.900 |
1035.400 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
983.200 |
1256.900 |
1035.400 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION (F) |
100.700 |
89.000 |
79.500 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
882.500 |
1167.900 |
955.900 |
|
|
|
|
|
|
|
Less |
TAX
(H) |
323.700 |
383.900 |
319.100 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H)
(I) |
558.800 |
784.000 |
636.800 |
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1330.500 |
673.100 |
36.300 |
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
Transfer to General Reserve |
55.900 |
78.400 |
0.000 |
|
|
Dividend (Including Tax on
Dividend) |
165.100 |
48.200 |
0.000 |
|
|
|
|
|
|
|
|
BALANCE
CARRIED TO THE B/S |
1668.300 |
1330.500 |
673.100 |
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
707.700 |
729.800 |
538.900 |
|
|
Indenting commission |
1.400 |
0.600 |
1.500 |
|
|
Income from shared services |
37.000 |
71.400 |
31.100 |
|
|
TOTAL
EARNINGS |
746.100 |
801.800 |
571.500 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
789.500 |
708.200 |
640.400 |
|
|
Finished goods |
1030.300 |
800.700 |
757.200 |
|
|
Components, Stores and Spare Parts |
0.600 |
0.600 |
1.100 |
|
|
Capital goods |
63.800 |
30.200 |
31.800 |
|
|
Others |
3.100 |
0.000 |
0.000 |
|
|
TOTAL
IMPORTS |
1887.300 |
1539.700 |
1430.500 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (Rs.) |
33.70 |
47.20 |
38.40 |
KEY RATIOS
|
PARTICULARS |
|
31.12.2013 |
31.12.2012 |
31.12.2011 |
|
PAT / Total Income |
(%) |
6.82 |
11.08 |
10.50 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
11.06 |
16.99 |
16.21 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
15.65 |
19.71 |
19.15 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.17 |
0.24 |
0.23 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.26 |
4.72 |
4.96 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.12.2011 |
31.12.2012 |
31.12.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
166.000 |
166.000 |
166.000 |
|
Reserves & Surplus |
3934.800 |
4670.600 |
5064.300 |
|
Net
worth |
4100.800 |
4836.600 |
5230.300 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
0.000 |
|
Short term borrowings |
0.000 |
0.000 |
0.000 |
|
Total
borrowings |
0.000 |
0.000 |
0.000 |
|
Debt/Equity
ratio |
0.000 |
0.000 |
0.000 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.12.2011 |
31.12.2012 |
31.12.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
5895.700 |
6872.800 |
7977.800 |
|
|
|
16.573 |
16.078 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.12.2011 |
31.12.2012 |
31.12.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
5895.700 |
6872.800 |
7977.800 |
|
Profit |
636.800 |
784.000 |
558.800 |
|
|
10.80% |
11.41% |
7.00% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report
(Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
No |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
|
LITIGATION DETAILS |
|||||||
|
Bench:- Bombay |
|||||||
|
Lodging No. : |
ITXAL/2117/2013 |
Failing Date:- |
21/12/2013 |
Reg. No.:- |
ITXA/105/2014 |
Reg. Date:- |
23/01/2014 |
|
Petitioner:- |
THE COMMISSIONER OF INCOME TAX 6 - |
Respondent:- |
MERCK LIMITED |
||||
|
Petn.Adv:- |
Suresh Kumar (I2100) |
|
|
||||
|
District:- |
MUMBAI |
||||||
|
Bench:- |
DIVISION |
Category:- |
TAX APPEALS |
||||
|
Status:- |
Pre - Admitted |
Stage:- |
|||||
|
Last Date:- |
09/06/2014 |
||||||
|
Coram:- |
ACCORDING TO SITTING LIST ACCORDING TO SITTING LIST |
||||||
|
|
|
||||||
|
Act. : |
Income Tax Act,1961s |
Under Section 260A |
|||||
COMPANY’S OPERATIONAL
PERFORMANCE:
Detailed operational working of the Company are discussed in the Management Discussion and Analysis Report forming part of this Report. During the financial year ending 31 December, 2013, the Company achieved a turnover of Rs. 7729.600 million as against a turnover of Rs. 6580.700 million in the previous year, registering a growth of 17.5%. During the year under report, the Pharmaceuticals segment showed an increase in turnover of 20%, the Chemicals segment registered an increase of 12% as compared to the respective segment turnover in the previous year.
The devaluation of the Indian Rupee vis-a-vis major currencies resulted in increase of input costs, sluggish in economic environment and impairment of current assets, were key reasons for the dent in operating margins. The Profit after Tax for the year under review was Rs. 558.800 million as against Rs. 784.000 million in previous year, showing a fall of 28.7%.
The export turnover of the Company during the year 2013 was Rs. 707.700 million as against Rs. 729.800 million achieved in the previous year.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
Pharmaceuticals
Segment:
The Pharmaceuticals Segment has two Business Division, namely Merck Serono and Consumer Health Care. The performances for the two Business Divisions are highlighted below.
Merck Serono:
Merck Serono division accounted for 61% of the Total Company’s turnover, registering a growth of 20% over year 2012. The time tested brands of Neurobion, Polybion, Evion, Livogen and Concor continued their contribution to the sales growth of the Merck SeronoDivision, many of them recording double digit growth. Over all the growth rate was double that of the market growth in year 2013.
Concor continues to attain double digit growth of 28% in year 2013. The set up of a dedicated sales and marketing team in year 2009, continues to bear its recurring fruits due to therapeutic thrust and focus. Concor has scaled up from 6th position in 2012 to be the 3rd position in 2013, in the Beta-blocker therapeutic segment.
Carbophage, a Metformin formulation from the house of the original discovery of Merck Group, continued the healthy double digit growth (2013 : 46%) and is now at the 8th position (2012 : 10th) in the Anti Diabetic therapeutic segment.
In the haematinic therapeutic segment, Livogen has registered 17% growth over year 2012. The Women’s Health business field in year 2013, further focused on pregnancy support areas.
Merck Serono division continues to emphasise the spread of field force across the country, optimizing structure for efficient coverage in the major metros and through improved penetration in rural areas. The division aims to continue their penetration into the rural areas with the core legacy brands (particularly Polybion, and Evion) and to address life cycle management with new product launches, like Dvion which was well accepted. The division will continue to focus on more specialist areas such as Cardio-Diabetic and Women’s Health, while driving efficient growth in General Medicines.
In 2013, the Merck Serono division implemented a multi-channel marketing (MCM) process which institutionalises the use of social media, online initiatives, webinars, and SMS campaigns. This new process facilitates to reach out to medical practitioners both in concentrated metro areas and in rural towns. This MCM process complements the traditional sales and marketing avenues such as field force and also helps to reach the younger generation of medical practitioners who are now using internet and digital media to access their medical information.
Consumer Health Care
Division:
Consumer Health Care division accounted for 8% of the Total Company’s turnover, registering a growth of 17% over year 2012.
In the cough and cold category, consumer health has its presence through ‘Nasivion’ which is one of the leading brands in the category. The brand has also seen organic expansion within the nasal decongestant spray’s segment with the launch of Nasivion Advance, which is an innovative formulation having Menthol and Aloe vera, and in the anti-allergy segment with the launch of Nasivion Allergy tablets. Both the new launches have been successful in garnering additional market share for the brand and accelerating the overall growth.
Everyday Health Protection and Women and Children Health categories are being represented by the growing brands : Seven Seas and Maxepa. Seven Seas has shown a strong double digit growth and has captured significant market share in the year 2013, while Maxepa has maintained its position in the top 5 brands of Omega 3 supplements in India.
The local brand Electrobion has seen strong growth of 43%, due to focused approach of sales, along with trade support. Electrobion’s performance has been faster than the overall market growth of 2013 in the Oral Rehydration Salts category.
The division aims to grow further by adding line extensions on key brands by making a foray into participated segments and leveraging the local and global R and D capabilities.
Pharma Exports:
With Merck Group prevalent in more than 67 countries worldwide, the ability to export remains rather limited. However, the Company exports to some Asian and African countries, the major being Sri Lanka, Nepal, Lebanon, Kenya, Libya, among others. Pharma exports grew by 1% in the year 2013, and contributed 5% to total Pharma Segment sales. The major growth came from African region.
Chemicals Segment:
The Chemicals segment sales turnover grew by 12% in year 2013, to achieve Rs. 2387.100 million as against Rs. 2,123.900 million in year 2012. The Chemicals comprises two divisions: i.e. Pharma Chem Solutions and Performance Materials.
The Chemical segment results for the year 2013 fell over previous year, mainly due to inability to pass on the increased costs to customers.
Pharm Chem Solutions:
The Pharm Chem Solutions division, as evident from the name, offers products and solutions for Pharma and Bio-pharma industry. Products mainly comprise of Active Pharmaceutical ingredients, High quality excipients and Bio-pharmaceuticals. The division’s bulk drug products like Vitamin E, Guaizulene, Thaimine DiSulphide (TDS) are manufactured at Goa.
The Growth in Generic Exports and the need for regulatory compliance has driven the sales of this division above average industry growth. In addition, the Company enjoys the confidence and trust as a partner to the industry through its initiatives to advise the industry on latest regulatory trends.
Performance
Materials:
Performance Materials division is mainly into the business of ‘Effect’ Pigments for the Automotive, Cosmetics, plastics printing and Security Industry and basket of ‘Actives’ for the Cosmetics Industry in addition to the Functional Pigments. This division has globally and locally undergone a structural change and the ‘Taizhu’ Pigments facility in China was shut down.
In the backdrop of sluggish automotive industrial growth, coupled with discontinuation of ‘Taizhu’ material, average industrial growth in the economy and stiff local competition the sales and marketing team of Pigments business put in excellent efforts in project based selling, to ensure a respectable growth over year 2012.
Note: No Charges Exist for Company
FIXED ASSETS
Tangible Assets
- Freehold Land
- Buildings and Flats
- Plant and Machinery
- Hardware
- Furniture and Fixtures
- Vehicles
- Office Equipment
Intangible Assets
- Brands/Trademarks
- Computer Software
PRESS RELEASE
April 23, 2014
MERCK ANNOUNCES WINNER OF SECOND MERCK-TAGORE AWARD TO PROMOTE CULTURAL
EXCHANGE BETWEEN INDIA AND GERMANY
- Prof. Dr. Pramod Talgeri,
Vice-Chancellor, India International Multiversity, selected winner
- Merck-Tagore Award helps honour life
and work of Rabindranath Tagore
- Award is granted by Goethe-Institut /
Max Mueller Bhavan India
Kolkata, April 23, 2014 – Merck, the global pharmaceuticals and chemicals company, today announced Prof. Dr. Pramod Talgeri, Vice-Chancellor, India International Multiversity as the winner of the second Merck-Tagore Award. The Award, instituted in 2012, is granted every two years to a person who has made distinctive contributions in promoting cultural exchange between India and Germany. It is granted by Goethe-Institut / Max Mueller Bhavan India and represented by Goethe-Institut / Max Mueller Bhavan Kolkata.
Dr. Pramod Talgeri is an expert of German language and has contributed immensely to promoting the language at Jawaharlal Nehru University, New Delhi and the University, Central Institute of Englishand Foreign Languages (now EFLU), Hyderabad. He has been invited by various US, European and Asian universities as well as by the Maison des Sciences de L'Homme to deliver lectures on German literature and comparative literature. More recently, Dr. Talgeri was re-nominated by Prime Minister, Dr. Manmohan Singh, as member of the newly reconstituted high level Indo-German Consultative Group for policy planning of bilateral relations between India and Germany. It was his illustrious career and significant work that made Dr. Pramod Talgeri a unanimous choice of the second Merck-Tagore Award by a jury comprising a representative each of the Goethe-Institut / Max Mueller Bhavan India, the German Federal Foreign Office and Merck Limited [India].
Speaking on the occasion Dr. Frank Stangenberg-Haverkamp said, “Merck is proud to honour the cultural collaboration between India and Germany which was nurtured during the life and time of Tagore. The Merck family continues to have a keen interest in the rich heritage of these two countries and has strengthened its commitment to this cultural exchange.”
The promotion of literature has a strong tradition at Merck and today spans multiple countries across the world. In addition to the Merck-Tagore Award the company once a year grants the Johann Heinrich Merck Award together with the German Academy for Language and Poetry in Germany as well as the Premio Letterario in Italy. Starting this year, Merck will also award the Kakehashi literature prize in Japan, which will be granted every two years.
The association between Merck and Tagore, the internationally renowned Indian poet, philosopher and musician, goes back a long way when one of its family members, Elisabeth Wolff-Merck, translated the play ‘Chitra’ by Rabindranath Tagore into German. Moreover, Kurt Wolff (husband of Elisabeth Wolff-Merck) owned the Kurt Wolff Verlag, which started publishing Tagore’s works in 1914; making the writer known in Germany. In all, Kurt Wolff brought out over twenty Tagore volumes within eleven years (1914-1925) selling more than one million copies. Kurt Wolff’s publishing house worked on an eight-volume edition which was launched in 1921 and is well stocked in the antiquarian bookshops even today. Back then, though this edition created a furore about Tagore’s works, only a fraction of the poet’s works became accessible to the public.
Dr. Claus-Dieter Boedecker added, “The Merck-Tagore Awards is a testament to the exemplary cultural relationship between India and Germany. Dr. Pramod Talgeri’s efforts to promote bilateral interests between Germany and India ranging from higher education, trade to culture made him an obvious choice as this year’s recipient. I believe the Awards will allow us to continually foster greater, mutual admiration between India and Germany for the liberal and cultural arts”.
Mr. Friso Maecker, Director, Goethe-Institut / Max Mueller Bhavan Kolkata, said “It is with great pleasure that we are presenting the second edition of the Merck-Tagore Awards. This recognition transcends geographic boundaries and creates a deeper understanding between Germany and India. The Goethe-Institut / Max Mueller Bhavan in India has been committed to promote mutual cultural understanding for the past fifty years. Just like Rabindranath Tagore, one of the greatest ‘cultural ambassadors’ to his nation, we believe in exchange and follow his footsteps in bringing together Indian and German artists and intellectuals, present contemporary German culture to foster the Indo-German cooperation.
About Merck
Merck is a leading company for innovative and top-quality high-tech products in the pharmaceutical and chemical sectors. With its four divisions Merck Serono, Consumer Health, Performance Materials and Merck Millipore, Merck generated total revenues of EUR 11.1 billion in 2013. Around 38,000 Merck employees work in 66 countries to improve the quality of life for patients, to further the success of customers and to help meet global challenges. Merck is the world’s oldest pharmaceutical and chemical company – since 1668, the company has stood for innovation, business success and responsible entrepreneurship. Holding an approximately 70 percent interest, the founding family remains the majority owner of the company to this day. Merck, Darmstadt, Germany is holding the global rights to the Merck name and brand. The only exceptions are Canada and the United States, where the company is known as EMD.
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.59.30 |
|
|
1 |
Rs.99.34 |
|
Euro |
1 |
Rs.80.70 |
INFORMATION DETAILS
|
Information
Gathered by : |
PDT |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
VRN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
0 |
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
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.