MIRA INFORM REPORT

 

 

Report No. :

353771

Report Date :

10.12.2015

 

IDENTIFICATION DETAILS

 

Name :

NESTLE INDIA LIMITED (w.e.f. 24.03.1989)

 

 

Formerly Known As :

FOOD SPECIALITIES LIMITED

 

 

Registered Office :

M-5A, Connaught Circus, New Delhi – 110001

Tel. No.:

91-11-41514444

 

 

Country :

India

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

28.03.1959

 

 

Com. Reg. No.:

55-003786

 

 

Capital Investment / Paid-up Capital :

Rs.964.200 Million

 

 

CIN No.:

[Company Identification No.]

L15202DL1959PLC003786

 

 

IEC No.:

0588000531

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

AAACN0757G 

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Manufactures and sells food products in India and internationally. The company provides various prepared dishes and cooking aids; chocolates and confectionery products; milk and nutrition products; and coffee and beverages. It also offers vending and food services, such as beverage systems, beverage solution products, food service products, and touch points. (From Indirect Sources)

 

 

No. of Employees :

7228 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aaa (86)

 

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

 

Maximum Credit Limit :

USD 81000000

 

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Nestle India was incorporated in 1959 and commenced commercial manufacturing operations in 1962 by setting up a plant in Moga (Punjab). The company manufactures products under four categories: 'Milk Products and Nutrition', 'Beverages', 'Prepared Dishes and Cooking Aids', and 'Chocolates and Confectionery'.

 

Nestle India has eight manufacturing facilities in India - at Moga (Punjab), Samalkha (Haryana), Nanjangud (Karnataka), Ponda and Bicholim (Goa), Choladi (Tamil Nadu), Pantnagar (Uttarakhand) and at Tahliwal (Himachal Pradesh).

 

Rating continue to reflect the company's leading market position in several product categories, well-established brands, diversified revenue profile, and extensive distribution network.

 

Maggi noodles is estimated to account for around 20 per cent of Nestle India's revenue. Therefore, it is believed that stoppage of sale of this product will impact the company's operating performance over the near term.

 

However, the stoppage is unlikely to have any significant adverse impact on Nestle India's other business segments.

 

Ratings also factor in the technical support that it continues to receive from its parent, Nestle SA, which is the world's largest players in the branded and packaged foods sector.

 

Moreover, the company continues to have a healthy financial risk profile because of strong cash generation, minimal debt, and ample liquidity.

 

Nestle India is exposed to increasing and intense competition in the domestic FMCG market, with the entry of new players, including multinationals, in various segments including instant noodles and packaged foods.

 

Furthermore, the company would pursue resolution of the class action suit filed before the National Consumer Disputes Redressal Commission seeking about Rs.6.4 billion in damages for alleged unfair trade practices and sale of defective goods.

 

In view of aforesaid, 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, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

Long term Loan = AAA

Rating Explanation

Highest degree of safety and carry lowest credit risk.

Date

November 15, 2015

 

Rating Agency Name

CRISIL

Rating

Short term debt = A1+

Rating Explanation

Very strong degree of safety and carry lowest credit risk.

Date

November 15, 2015

 

 

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 31-03-2015.

 

INFORMATION DENIED

 

Management non-cooperative (91-124-2389300)

 

LOCATIONS

 

Registered Office :

M-5A, Connaught Circus, New Delhi – 110001s, India

Tel. No.:

91-11-41514444

Fax No.:

Not Available

E-Mail :

investor@in.nestle.com

WeCare@in.nestle.com

communication@in.nestle.com

media.india@in.nestle.com
exports.enquiry@in.nestle.com

Website :

www.nestle.in

 

 

Head / Corporate Office :

“Nestlé House” Jacaranda Marg, ‘M’ Block, DLF City, Phase II, Gurgaon – 122002, Haryana, India

Tel. No.:

91-124-2389300

Fax No.:

91-124-2389399

 

 

Factory 1 :

Village Maulinguem (North), Taluka Bicholim – 403504, Goa, India

 

 

Factory 2 :

Plot No. 294-297, Usgao Industrial Area, Ponda – 403406, Goa, India

 

 

Factory 3 :

Unit I and II - Patti Kalyana, Kiwana Road, Samalkha, District Panipat – 132101,  Haryana, India

 

 

Factory 4 :

Industrial Area, Tahliwal, District Una – 174301, Himachal Pradesh, India

 

 

Factory 5 :

Industrial Area, Nanjangud, District Mysore – 571301, Karnataka, India

 

 

Factory 6 :

Ludhiana-Ferozepur Road, Near Kingwah Canal, Moga – 142001, Punjab, India

 

 

Factory 7 :

P.O. Cherambadi, District Nilgiris – 643205, Tamilnadu

 

 

Factory 8 :

Plot No. – 1A, Sector No. -1, Integrated Industrial Estate, SIDCUL, Pantnagar, District Udhamsingh Nagar – 263145, Uttarakhand, India

 

 

Branch Offices :

- Spencer Plaza, 6th Floor 769, Anna Salai, Chennai – 600002, Tamilnadu, India

 

- Tower “C”, 12th Floor, DLF IT Park, 08, Major Arterial Road, Block – AF, New Town, Rajarhat, Kolkata – 700156, West Bengal, India

 

- 1st Floor, ICC Chambers, Near Saki Vihar Telephone Exchange, Saki Vihar Road, Powai, Mumbai – 400072, Maharashtra, India

 

 

DIRECTORS

 

As on 31.12.2014

 

Name :

Mr. Etienne André Marie Benet

Designation :

Managing Director

DIN No.:

06702574

 

 

Name :

Mr. Antonio Helio Waszyk

Designation :

Non-Executive Chairman

DIN No.:

02730946

 

 

Name :

Mr. Shobinder Dugga

Designation :

Director - Finance and Control and Chief Financial Officer

DIN No.:

00039580

 

 

Name :

Mr. Aristides Protonotarios

Designation :

Director - Technical

DIN No.:

06546858

 

 

Name :

Michael William Oliver Garrett

Designation :

Independent Non-Executive Director

DIN No.:

00051904

 

 

Name :

Mr. Rajya Vardhan Kanoria

Designation :

Independent Non-Executive Director

DIN No.:

00003792

 

 

Name :

Mr. Ashok Kumar Mahindra

Designation :

Independent Non-Executive Director

DIN No.:

00916746

 

 

Name :

Mr. Ravinder Narain

Designation :

Independent Non-Executive Director

DIN No.:

00059197

 

 

Name :

Ms. Swati Ajay Piramal

Designation :

Independent Non-Executive Director

DIN No.:

00067125

 

 

KEY EXECUTIVES

 

BOARD COMMITTEES:

Audit committee :

·         Ashok Kumar Mahindra (Chairman)

·         Michael William Oliver Garrett (Member)

·         Rajya Vardhan Kanoria (Member)

·         Ravinder Narain (Member)

 

 

Stakeholders Relationship Committee  :

·         Ravinder Narain (Chairman)

·         Shobinder Duggal (Member)

·         Rajya Vardhan Kanoria (Member)

 

 

Corporate Governance and Social Responsibility Committee :

·         Antonio Helio Waszyk (Chairman)

·         Michael William Oliver Garrett (Member)

·         Ravinder Narain (Member)

·         Swati Ajay Piramal (Member)

 

 

Nomination and Remuneration Committee :

·         Michael William Oliver Garrett (Chairman)

·         Rajya Vardhan Kanoria (Member)

·         Ashok Kumar Mahindra (Member)

·         Ravinder Narain (Member)

 

 

Risk Management Committee :

·         Shobinder Duggal (Chairman)

·         Aristides Protonotarios (Member)

·         Anurag Dikshit (Member)

Management Committee :

·         Etienne André Marie Benet (Managing Director)

·         Aristides Protonotarios (Technical)

·         Arvind Bhandari (Dairy)

·         B. Kannan (Channel Category Geography Sales Development)

·         B. Murli (Legal and Company Secretary)

·         Binu Jacob (Nutrition)

·         Biplab Baksi (Human Resources)

·         Chandrasekar Radhakrishnan (Communications)

·         Hari Nariani (Globe and Market NCE)

·         Luca Fichera (Supply Chain)

·         Maarten Geraets (Foods)

·         Mayur Bhargava (Chocolates and Confectionery)

·         Nayla Sioufi (Coffee and Beverages)

·         Rajkamal Sharma (Exports)

·         Ravi Ramchandran  (Sales)

·         Sanjay Khajuria (Corporate Affairs)

·         Shobinder Duggal (Finance and Control and CFO)

·         Zander Taningco (Nestlé Professional)

 

 

SHAREHOLDING PATTERN

 

As on 30.09.2015

 

Category of Shareholder

Total No. of Shares

Total Shareholding as a % of Total No. of Shares

(A) Shareholding of Promoter and Promoter Group

 

 

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

60515079

62.76

http://www.bseindia.com/include/images/clear.gifSub Total

60515079

62.76

Total shareholding of Promoter and Promoter Group (A)

60515079

62.76

 

 

 

(B) Public Shareholding

 

 

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifMutual Funds / UTI

801747

0.83

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

109160

0.11

http://www.bseindia.com/include/images/clear.gifCentral Government / State Government(s)

32897

0.03

http://www.bseindia.com/include/images/clear.gifInsurance Companies

3764099

3.90

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

11735514

12.17

http://www.bseindia.com/include/images/clear.gifSub Total

16443417

17.05

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

2095451

2.17

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

Individual shareholders holding nominal share capital up to Rs.0.100 Million

9011730

9.35

Individual shareholders holding nominal share capital in excess of Rs.0.100 Million

4633230

4.81

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

3716809

3.85

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

532882

0.55

http://www.bseindia.com/include/images/clear.gifOverseas Corporate Bodies

500

0.00

http://www.bseindia.com/include/images/clear.gifTrusts

3566

0.00

http://www.bseindia.com/include/images/clear.gifForeign Portfolio Investors

3179811

3.30

Foreign Individuals

50

0.00

Sub Total

19457220

20.18

Total Public shareholding (B)

35900637

37.24

Total (A)+(B)

96415716

100.00

 

 

 

(C) Shares held by Custodians and against which Depository Receipts have been issued

 

 

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

Total (A)+(B)+(C)

96415716

0.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufactures and sells food products in India and internationally. The company provides various prepared dishes and cooking aids; chocolates and confectionery products; milk and nutrition products; and coffee and beverages. It also offers vending and food services, such as beverage systems, beverage solution products, food service products, and touch points. (From Indirect Sources)

 

 

Products :

·         Chocolates and Confectionery Products

·         Milk and Nutrition Products

·         Coffee and Beverages

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

 

Selling :

Not Divulged

 

 

Purchasing :

Not Divulged

 

PRODUCTION STATUS = NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Experience :

Not Divulged

Maximum Limit Dealt :

Not Divulged

 

 

Customers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Experience :

Not Divulged

Maximum Limit Dealt :

Not Divulged

 

 

No. of Employees :

7228 (Approximately)

 

 

Bankers :

Banker Name

Axis Bank Limited

Branch Address

Not Divulged

Person Name (With Designation)

Not Divulged

Contact Number

Not Divulged

Name of Account Holder

Not Divulged

Account Number

Not Divulged

Account Since (Date/Year of Account Opening)

Not Divulged

Average Balance Maintained (If Possible)

Not Divulged

Credit Facilities Enjoyed (If any)

Not Divulged

Account Operation

Not Divulged

Remarks (If any)

Not Divulged

 

·         Bank of America N.A.

·         Citibank N.A.

·         Deutsche Bank AG

·         HDFC Bank Limited

·         ICICI Bank Limited

·         JP Morgan Chase Bank N.A.

·         Punjab National Bank

·         Standard Chartered Bank

·         State Bank of Hyderabad

 

 

Facilities :

(Rs. In Million)

SECURED LOAN

As on

31.12.2014

As on

31.12.2013

SHORT TERM BORROWING

 

 

From Banks

 

 

Bank Overdraft

41.100

0.100

Total

41.100

0.100

 

Auditors :

 

Name :

A.F. Ferguson and Company

Chartered Accountants

Address :

9, Scindia House, Kasturba Gandhi Marg, New Delhi – 110001, India

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Holding Companies :

·         Nestlé S.A

·         Maggi Enterprises Limited

 

 

Fellow Subsidiaries :

·         Marcas Nestlé SA de CV

·         Nestlé Nigeria Plc

·         Nestec S.A.

·         Nestlé Operational Services Worldwide SA

·         Nestec York Limited

·         Nestlé Pakistan Limited

·         Nestlé (China) Limited

·         Nestlé Panama S.A.

·         Nestlé (PNG) Limited

·         Nestlé Philippines, Inc.

·         Nestlé (Thai) Limited

·         Nestlé Products (Mauritius) Limited

·         Nestlé Adriatic S DOO

·         Nestlé Products Sdn Bhd

·         Nestlé Asean (Malaysia) Sdn Bhd

·         Nestlé Qingdao Limited

·         Nestlé Australia Limited

·         Nestlé Quality Assurance Center

·         Nestlé Bangladesh Limited

·         Nestlé R&D Center (Pte) Limited

·         Nestlé Brasil Ltda

·         Nestlé R&D Center Inc

·         Nestlé Business Services AOA, Inc.

·         Nestlé R&D Center Shanghai Limited

·         Nestlé Canada Inc

·         Nestlé R&D Centre India Private Limited

·         Nestlé Central And West Africa

·         Nestlé Regional Service Centre (Malaysia) Sdn Bhd

·         Nestlé Centroamerica, S.A.

·         Nestlé Servicios Corporativos, S.A.

·         Nestlé Danmark A/S

·         Nestlé Shanghai Limited

·         Nestlé Deutschland AG

·         Nestlé Shuangcheng Limited

·         Nestlé Dongguan Limited

·         Nestlé Singapore (Pte) Limited

·         Nestlé Dubai Manufacturing LLC

·         Nestlé South Africa Pty Limited

·         Nestlé Egypt S.A.E.

·         Nestlé Suisse S.A.

·         Nestlé Equatorial African Region

·         Nestlé Sverige AB

·         Nestlé Espana, S.A.

·         Nestlé Taiwan Limited

·         Nestlé Food Kazakhstan LLP

·         Nestlé Tianjin Limited

·         Nestlé France S.A.S.

·         Nestlé Turkiye Gida Sanayi A.S.

·         Nestlé Hong Kong Limited

·         Nestlé UK Limited

·         Nestlé Hungaria Kft.

·         Nestlé USA Inc

·         Nestlé International Travel Retail

·         Nestlé Vietnam Limited

·         Nestlé Japan Limited

·         Nestlé Waters Management and Technology

·         Nestlé Kenya Limited

·         Nestlé Waters North America Inc

·         Nestlé Korea Limited

·         Nestlé Zimbabwe (Private) Limited

·         Nestlé Kuban LLC

·         Nestrade S.A.

·         Nestlé Lanka PLC

·         PT Nestlé Indonesia

·         Nestlé Manufacturing(Malaysia) Sdn Bhd

·         Quality Coffee Products Limited

·         Nestlé Maroc S.A.

·         San Pellegrino S.p.A.

·         Nestlé México S.A. de C.V.

·         SERVCOM S.A.

·         Nestlé Middle East FZE

·         Société des Produits Nestlé S.A.

·         Nestlé Nederland B.V.

·         Wyeth Nutritional (China) Co., Limited

·         Nestlé New Zealand Ltd

·         S-26 Nutrition India Private Limited

 

 

Employees benefit trusts where control exists :

·         Nestlé India Limited Employees Provident Fund Trust

·         Nestlé India Limited Employees’ Gratuity Trust Fund

 

 

CAPITAL STRUCTURE

 

As on 31.12.2014

 

Authorised Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

100000000

Equity Shares

Rs.10/- each

Rs.1000.000 Million

 

Issued, Subscribed & Paid-up Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

96415716

Equity Shares

Rs.10/- each

Rs.964.200 Million

 

Reconciliation of shares and amount outstanding at the beginning and at the end of the year

 

Particulars

As on 31.12.2014

No. of shares

Rs. in Million

Shares outstanding at the beginning of the year

96415716

964.200

Movement during the year

---

---

Shares outstanding at the end of the year

96415716

964.200

 

Rights, preferences and restrictions attached to equity shares

 

The Company has only one class of equity shares with face value of Rs.10 each, ranking pari passu.

 

Equity shares held by holding companies

 

Particulars

As on 31.12.2014

No. of shares

Nestlé S.A.

33051399

Maggi Enterprises Limited (Ultimate holding company being Nestlé S.A.)

27463680

 

Shareholders holding more than 5% of equity shares

 

Name of the shareholder

As on 31.12.2014

No. of shares

% of holding

Nestlé S.A.

33051399

34.28

Maggi Enterprises Limited

27463680

28.48

 

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

31.12.2014

31.12.2013

31.12.2012

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

964.200

964.200

964.200

(b) Reserves & Surplus

27407.900

22723.300

17019.900

(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)

28372.100

23687.500

17984.100

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

154.600

11894.800

10499.500

(b) Deferred tax liabilities (Net)

2227.200

2154.700

1620.800

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

13886.600

11933.900

10147.500

Total Non-current Liabilities (3)

16268.400

25983.400

22267.800

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

41.100

0.100

2.400

(b) Trade payables

7287.100

6330.400

5394.000

(c) Other current liabilities

4095.700

5002.500

5580.300

(d) Short-term provisions

2130.600

2138.800

410.600

Total Current Liabilities (4)

13554.500

13471.800

11387.300

 

 

 

 

TOTAL

58195.000

63142.700

51639.200

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

31766.400

33693.100

32042.700

(ii) Intangible Assets

0.000

0.000

0.000

(iii) Capital work-in-progress

2447.800

2947.100

3440.800

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

3044.600

2241.200

0.000

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

1299.500

1239.400

1254.500

(e) Other Non-current assets

0.000

4.700

0.000

Total Non-Current Assets

38558.300

40125.500

36738.000

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

5073.600

6269.600

3648.600

(b) Inventories

8441.000

7359.300

7455.800

(c) Trade receivables

991.000

842.700

875.700

(d) Cash and cash equivalents

4458.200

7493.600

2369.600

(e) Short-term loans and advances

520.700

1013.600

541.500

(f) Other current assets

152.200

38.400

10.000

Total Current Assets

19636.700

23017.200

14901.200

 

 

 

 

TOTAL

58195.000

63142.700

51639.200

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.12.2014

31.12.2013

31.12.2012

 

SALES

 

 

 

 

Income

98548.400

91010.500

83345.300

 

Other Income

873.200

830.900

310.300

 

TOTAL

99421.600

91841.400

83655.600

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

44825.400

39069.900

37568.700

 

Purchases of Stock-in-Trade

1088.500

1100.400

1115.300

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

(674.300)

1053.200

(920.200)

 

Employees benefits expense

7549.100

6856.900

6633.800

 

Other expenses

24013.400

22176.300

20367.400

 

Impairment loss on fixed assets

81.100

99.400

68.500

 

Net provision for contingencies (from operation)

364.300

413.100

339.900

 

Employee benefits expenses due to passage of time

648.300

558.100

0.000

 

Net provision for contingencies (others)

249.500

207.400

(81.500)

 

Corporate social responsibility expenses

85.100

0.000

0.000

 

Exceptional items

(70.000)

(138.100)

0.000

 

TOTAL

78160.400

71396.600

65091.900

 

 

 

 

 

Less

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

21261.200

20444.800

18563.700

 

 

 

 

 

Less

FINANCIAL EXPENSES

142.300

365.100

266.000

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

21118.900

20079.700

18297.700

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

3375.400

3299.500

2771.500

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

17743.500

16780.200

15526.200

 

 

 

 

 

Less

TAX

5896.600

5608.900

4846.900

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

11846.900

11171.300

10679.300

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD 

15328.800

10745.500

6568.900

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

Interim Dividends

4869.000

3471.000

4676.200

 

Proposed final dividend

1205.200

1205.200

0.000

 

Dividend Distribution tax

1091.600

794.700

758.600

 

Transfer to general reserve

1184.700

1117.100

1067.900

 

Total

8350.500

6588.000

6502.700

 

 

 

 

 

 

Balance Carried to the B/S

18825.200

15328.800

10745.500

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

F.O.B. Value of Exports

4898.400

4867.200

2929.000

 

Rupees sales to Nepal and Bhutan

1513.000

1364.000

1302.600

 

Foreign currency at C.I.F. value

0.000

4897.300

2954.300

 

TOTAL EARNINGS

6411.400

11128.500

7185.900

 

 

 

 

 

 

IMPORTS

 

 

 

 

Raw and packing materials

3544.200

2994.400

2491.100

 

Capital goods

257.600

698.600

1465.800

 

Goods – outside manufacture

358.700

302.100

273.900

 

Components and spare parts

149.100

149.800

120.400

 

TOTAL IMPORTS

4309.600

4144.900

4351.200

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

122.87

115.87

110.76

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.12.2014

31.12.2013

31.12.2012

Current Maturities of Long term debt

NA

NA

NA

Cash generated from operations

22331.000

22821.200

21084.500

Net cash from operating activities

16440.200

17964.000

16933.800

 

 

QUARTERLY RESULTS

 

Particulars

(Unaudited)

31.03.2015

30.06.2015

30.09.2015

1st Quarter

2nd Quarter

3rd Quarter

Net Sales

25164.800

19570.100

17423.600

Total Expenditure

19549.500

15819.800

14749.500

PBIDT (Excl OI)

5615.300

3750.300

2674.100

Other Income

254.700

301.300

272.200

Operating Profit

5870.000

4051.600

2946.300

Interest

34.100

0.600

0.200

Exceptional Items

(20.200)

(4516.600)

(245.200)

PBDT

5815.70

(465.60)

2700.900

Depreciation

950.100

720.000

905.500

Profit Before Tax

4865.600

(1185.600)

1795.400

Tax

1662.800

(541.600)

553.400

Provisions and contingencies

0.000

0.000

0.000

Profit After Tax

3202.800

(644.000)

1242.000

Extraordinary Items

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

Net Profit

3202.800

(644.000)

1242.000

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.12.2014

31.12.2013

31.12.2012

Net Profit Margin

(PAT/Sales)

(%)

12.02

12.27

12.81

 

 

 

 

 

Operating Profit Margin

(PBDIT / Sales)

(%)

21.57

22.46

22.27

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

33.67

28.95

32.21

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.63

0.71

0.86

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

0.01

0.50

0.58

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.45

1.71

1.31

 

STOCK PRICES

 

Face Value

Rs.10.00/-

Market Value

Rs.5857.05/-

 

 

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

DEBT EQUITY RATIO

 

Particular

31.12.2012

31.12.2013

31.12.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Share Capital

964.200

964.200

964.200

Reserves & Surplus

17019.900

22723.300

27407.900

Net worth

17984.100

23687.500

28372.100

 

 

 

 

long-term borrowings

10499.500

11894.800

154.600

Short term borrowings

2.400

0.100

41.100

Total borrowings

10501.900

11894.900

195.700

Debt/Equity ratio

0.584

0.502

0.007

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.12.2012

31.12.2013

31.12.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

83345.300

91010.500

98548.400

 

 

9.197

8.282

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.12.2012

31.12.2013

31.12.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

83345.300

91010.500

98548.400

Profit

10679.300

11171.300

11846.900

 

12.81%

12.27%

12.02%

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check list by info agents

Available in Report (Yes/No)

1

Year of establishment

Yes

2

Constitution of the entity -Incorporation details

Yes

3

Locality of the entity

Yes

4

Premises details

No

5

Buyer visit details

----------------------

6

Contact numbers

Yes

7

Name of the person contacted

No

8

Designation of contact person

No

9

Promoter’s background

No

10

Date of Birth of Proprietor / Partners / Directors

No

11

Pan Card No. of Proprietor / Partners

No

12

Voter Id Card No. of Proprietor / Partners

No

13

Type of business

Yes

14

Line of Business

Yes

15

Export/import details (if applicable)

No

16

No. of employees

Yes

17

Details of sister concerns

Yes

18

Major suppliers

No

19

Major customers

No

20

Banking Details

Yes

21

Banking facility details

Yes

22

Conduct of the banking account

----------------------

23

Financials, if provided

Yes

24

Capital in the business

Yes

25

Last accounts filed at ROC, if applicable

Yes

26

Turnover of firm for last three years

Yes

27

Reasons for variation <> 20%

----------------------

28

Estimation for coming financial year

No

29

Profitability for last three years

Yes

30

Major shareholders, if available

Yes

31

External Agency Rating, if available

Yes

32

Litigations that the firm/promoter involved in

----------------------

33

Market information

----------------------

34

Payments terms

No

35

Negative Reporting by Auditors in the Annual Report

No

 

 

UNSECURED LOAN

(Rs. In Million)

Particulars

As on

31.12.2014

As on

31.12.2013

LONG TERM BORROWING

 

 

Deferred VAT Liabilities

 

 

State of Karnataka

77.500

0.000

State of Himachal Pradesh

77.100

23.400

Term loan from holding company

 

 

External Commercial Borrowings

0.000

11871.400

Total

154.600

11894.800

 

 

INDEX OF CHARGES

 

S. No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

80002665

20/12/2012 *

4,000,000,000.00

Citi Bank N.A.

JEEVAN VIHAR, 3 SANSAD MARG, NEW DELHI - 110001, INDIA

B65047227

 

* Date of charge modification

 

 

FINANCIAL RESULTS AND OPERATION

 

Net Sales have increased by 8.2%. Net Domestic Sales grew by 8.6% mainly from better realizations. Export Sales grew by 2.9% impacted by lower coffee exports to Russia. Earnings Per Share at `122.87 increased by 6%.

 

The increase in Other Income is mainly due to higher realization of export incentives. Finance Costs have reduced mainly due to repayment of External Commercial Borrowings.

 

The Impairment Loss on Fixed Assets of Rs.81.100 million relates to various items of plant and machinery and building that have been brought down to their recoverable value upon evaluation of future economic benefits from their use.

 

The Company supplemented the Provision for Contingencies with further amount of Rs.613.800 million (net) for contingencies resulting mainly from issues, which are under litigation/dispute and other uncertainties requiring management judgement. This was after the reversal, utilisation/settlement of contingency provision of Rs.121.000 million due to the satisfactory settlement of certain litigations and settlement of obligations under free replacement warranty for which provision is no longer required.

 

 

Awards and Recognitions

 

The Company continues to be a highly trusted for the quality of its products, innovation and renovation of its products based on strong consumer insights and the ability to engage with consumers across the country. During the year, the Company was also recognized for the leadership in using the emerging digital platforms to develop relevant content. Some of the key awards and recognitions include:

 

·         WPP Milward Brown survey declared MAGGI as the ‘Most Powerful Brand’ in India where Brand Power was a measure of salience, relevance, connect, uniqueness and dynamism.

 

·         In the Economic Times Brand Equity Survey 2014, MAGGI moved up 4 positions from the previous year survey to break into the Top 5 Most Trusted Brands of India. Also ranked as the No.1 Food Brand in India.

 

·         In the Asian Customer Engagement Forum Nestlé BABY and me won Gold.

 

·         In the EFFIES Awards NESCAFÉ Classic awarded Silver in Beverages Category as well as for integrated advertising campaign category. Nestlé ALPINO awarded Bronze in consumer products category. Nestlé BABY & me awarded Bronze in Healthcare category.

 

·         Nestlé ‘Share Your Goodness’ corporate video ranked amongst the best of the year in the Google list of top trending videos.

 

 

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 30.09.2015

 

(Rs. In Million)

Particulars

3 Months Ended

9  Months Ended

30.09.2015

30.06.2015

30.09.2015

 

Unaudited

Unaudited

Unaudited

Part - I

 

 

 

Income from Operations

 

 

 

(a) Net Sales/Income from Operations (Net of Excise Duty)

17362.000

19338.400

61768.300

(b) Other Operating Income

61.600

231.700

390.200

Total Income from Operation

17423.600

19570.100

62158.500

 

 

 

 

Expenses

 

 

 

Cost of materials consumed

6605.000

7188.000

24898.000

Purchases of Stock in Trade

206.700

285.100

750.500

Changes in inventories of finished goods, work-in-progress and stock-in-trade

616.800

1080.300

959.100

Employee benefits expense

2108.500

1880.000

6001.300

Depreciation and amortization expense

905.500

720.000

2575.600

Other expenses

4761.700

5112.300

16092.900

Impairment of loss on fixed assets

168.300

0.000

282.200

Net provision for contingencies

77.300

78.100

241.500

Total Expenses

15449.800

16343.800

51801.100

 

 

 

 

Profit/(Loss) from Operations before Other Income, finance cost* and Exceptional Items (1-2)

1973.800

3226.300

10357.400

Other income

272.200

301.300

828.200

Profit/(Loss) from ordinary activities before finance costs and exceptional Items (3+4)

2246.000

3527.600

11185.600

Finance Costs

0.200

0.600

34.900

Employee Benefits Expense Due to passage of time

189.000

190.900

570.500

Net provision for contingencies

0.000

0.000

301.500

Profit/(Loss) from ordinary activities after finance costs but before exceptional items

2056.800

3336.100

10278.700

Corporate social responsibility expense U/S 135 of Companies Act, 2013

16.200

5.100

41.500

Exceptional Hems

245.200

4516.600

4761.800

Profit/(Loss) from ordinary activities before tax

1795.400

(1185.600)

5475.400

Tax Expense

553.400

(541.600)

1674.600

Net Profit/(Loss) for the period

1242.000

(644.000)

3800.800

Minority Interest

0.000

0.000

0.000

Net Profit/(Loss) after taxes, minority Interest and Share of Profit/(Loss)

1242.000

(644.000)

3800.800

Paid-up Equity Share Capital (Pace Value per share : Rs.10/-

964.200

964.200

964.200

Reserves excluding Revolution Reserve as per balance sheet of previous accounting year

---

---

---

 

 

 

 

Earning* per share of Rs.10/- each

(Not Annualised):

12.800

(6.68)

39.42

 

 

 

 

A. PARTICULARS OF SHAREHOLDING

 

 

 

Public shareholding

 

 

 

Number of shares

35900637

35900637

35900637

Percentage of Shareholding

37.24

37.24

37.24

 

 

 

 

Promoters and Promoter Group Shareholding

 

 

 

Pledged /encumbered

 

 

 

Number of shares

---

---

---

Percentage of shares (as a % of the total shareholding of promoter and promoter group)

---

---

---

Percentage of shares (as a % of the total share capital of the company)

---

---

---

 

 

 

 

Non-encumbered

 

 

 

Number of shares

60515079

60515079

60515079

Percentage of shares (as a % of the total shareholding of promoter and promoter group]

100.00

100.00

100.00

Percentage of shares (as a % of the total share capital of the company)

62.76

62.76

62.76

 

B

INVESTOR COMPLAINTS :

3 months Ended

30.09.2015

 

Pending at the beginning of the quarter

0

 

Received during the quarter

1

 

Disposed of during the quarter

1

 

Remaining unresolved at the end of the quarter

0

 

Note:

 

1.       Results for the quarter and nine months ended 30th September, 2015 have been impacted by the MAGGI Noodles issue. The trust of its consumers and the safety and quality of its products is Nestle's foremost priority. Unfortunately, developments and growing concerns about the product had led to an environment of confusion for the consumers to such an extent that the Company, on 5th June, 2015, decided to take the products temporarily off the shelves, despite the product being safe. This was done to reassure the consumers that their trust has always been of utmost importance for the Company and to maintain their continued patronage for Company's products. The Food Safety and Standards Authority of India (FSSAI) issued a recall order later on the same day i.e. 5th June, 2015 asking the Company to recall MAGGI Noodles, stop further manufacture and comply with other directions. In line with the instructions from the authorities and in keeping with environmental considerations, the withdrawn products were sent for high temperature thermal destruction and the Company suspended further manufacturing of MAGGI Noodles. The Company has conducted extensive additional tests, of over 3500 samples representing over 200 million packs of MAGGI Noodles, in both national and international accredited laboratories. All results confirm levels of lead are well below the permissible limits. Furthermore, several other countries have found MAGGI Noodles safe after testing samples of the product exported from India. With a view to resolving the issue, the Company approached the Hon’ble Bombay High Court raising issues of interpretation of the Food Safety and Standards Act 2011, whilst seeking judicial review of the order dated 5th June, 2015 passed by FSSAI and order dated 6th June, 2015 passed by the Commissioner of Food Safety, Maharashtra (FDA). The Hon’ble Bombay High Court vide its Order dated 13th August, 2015 read along with Order dated 4th September, 2015 revoked the ban order passed by FSSAI and FDA and directed fresh testing of MAGGI Noodles for lead at three NABL (National Accreditation Board for Testing and Calibration Laboratories) accredited FSSAI notified laboratories. Results from these laboratories were received by 16th October, 2015. 100% of the samples tested are clear with lead much below the permissible limits. In compliance with the directions of the Hon’ble Bombay High Court, the Company has thereafter started manufacture in three out of the five factories having MAGGI Noodles manufacturing capabilities and discussions are on with the authorities to commence manufacture in the remaining factories in Himachal Pradesh and Uttarakhand. Samples from the fresh manufacture have been sent to the same three laboratories to test for lead. Sale of MAGGI Noodles will commence only after the results are dear and other regulatory clearances, where necessary, are obtained. Net Sales worth Rs. 153.2 million have been reversed during the quarter (Cumulative: Rs. 3037.0 million) in relation to MAGGI Noodles stock being withdrawn from trade partners and market. The exceptional item relates to estimates of loss on account of stocks withdrawn including incidental costs thereto and other related costs incurred exclusively in the ordinary course of Company's business, dealt with in line with the Accounting Standard AS 2 on "Valuation of Inventories" and Accounting Standard AS 5 on "Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies".

 

2.       Results for the quarter/ nine months ended 30th September, 2015 are not comparable with the results of the corresponding/sequential periods (Refer Note - 1 above).

 

3.       "Net Sales" for the quarter have decreased by 32.1% largely due to the impact of MAGGI Noodles issue (Refer Note - 1 above). "Net Domestic Sales" decreased by 33.8%. "Export Sales" decreased by 6.4% which is impacted by MAGGI Noodles issue and lower sales to Nepal due to blockage of border in the last week of September, 2015.

 

4.       The Company has reviewed and reassessed useful life of fixed assets as per Schedule II to the Companies Act, 2013. Accordingly depreciation has been computed on reassessed useful lives based on technical evaluation of relevant class of assets. As a result depreciation charge for the quarter is higher by Rs. 45.000 million (Jan - Sep'15: Rs.187.100 million). Further, for assets whose reassessed remaining useful life as on 1st January, 2015 is Nil, depreciation of Rs. 193.900 million (net of deferred tax) has been adjusted against the retained earnings in accordance with the transitional provision as specified in Schedule II.

 

5.       "Net Provision for Contingencies" is mainly for matters related to litigations and related disputes. Provisions for Contingencies/ Contingent Liabilities / Contingent Assets are recognised/ disclosed after a careful evaluation of the facts and legal aspects of the matter involved, in line with the provision of Accounting Standard AS 29 on "Provisions, Contingent Liabilities and Contingent Assets".

 

6.       "Other Income" has increased as last year the liquidities were used for repayment of External Commercial Borrowings (ECB).

 

7.       Total cost of the employee benefit plans continue to be fully charged to the statement of profit and loss. While the amounts relating to current service cost and actuarial gains/ losses continue to be included in "Employee Benefits Expense"; the increase in cost of employee benefit plans, due to passage of time (net of return on plan assets) is presented under "Employee Benefits Expense due to passage of time" in line with the Accounting Standard AS 15 on "Employee Benefits"

 

8.       As the Company's business activity falls within a single primary business segment, namely Food, the disclosure requirements of Clause 41 of the Listing Agreement in terms of Accounting Standard AS 17 on "Segment Reporting" are not applicable.

 

9.       Previous period's figures have been regrouped / reclassified wherever necessary, to make them comparable with the current period.

 


THE ABOVE RESULTS AND THIS RELEASE HAVE BEEN REVIEWED BY AUDIT COMMITTEE OF THE BOARD AND APPROVED BY THE BOARD OF DIRECTORS AT THEIR MEETING HELD ON 29th OCTOBER, 2015.

 

 

FIXED ASSETS

 

Tangible assets

 

·         Freehold land

·         Leasehold land

·         Buildings

·         Railway siding

·         Plant and machinery

·         Furniture and fixtures

·         Office equipment

·         Information technology equipment

·         Vehicles

 

Intangible assets

 

·         Management information systems

·         Knowhow and commercial rights

 

 

WEBSITE DETAILS:

 

PRESS RELEASES:

 

MAGGI NOODLES - HON’BLE BOMBAY HIGH COURT VERDICT

 

Nestlé House, Gurgaon, August 13, 2015

 

The trust of their consumers and safety of their products are their utmost priorities across all the markets in which they operate.

 

Nestlé India respects the decision made on 13th August by the Honourable Bombay High Court to revoke the ban order passed by Food Safety and Standards Authority of India (FSSAI) and the Food and Drug Administration, Maharashtra on MAGGI Noodles and will comply with the order to undertake fresh tests.

 

Nestlé India remains committed to working with the FSSAI, FDA Maharashtra and other stakeholders.

 

It is Nestlé India’s endeavour to get MAGGI Noodles back on the shelves as soon as possible for the benefit of their consumers.

 

 

SURESH NARAYANAN TO REPLACE ETIENNE BENET AS NESTLÉ INDIA MD

 

Fri, July 24 2015

 

The move to appoint an Indian as the managing director of the company is a step in the right direction, said analysts

 

Mumbai: In the midst of one of the largest-ever food recalls in the country, Nestlé India Limited is putting an Indian at the helm to manage the crisis.

 

The company’s managing director Etienne Benet is stepping down with immediate effect and will be replaced by Suresh Narayanan, who is currently the chairman of Nestlé Philippines, the company said in a statement to BSE on Friday.

 

Benet is leaving with effect from 25 July 2015 and will be relocating to Nestlé Group head office in Switzerland.

 

“Nomination has been received from Nestlé SA for the appointment of Suresh Narayanan as the managing director of the company with effect from 1 August 2015,” said the company, adding that Narayanan has been with the group since 1999 and has a great deal of experience in India and overseas.

 

Since 1998, Nestlé has been led by expatriates in the country. In its hour of crisis, in the wake of the Maggi noodles ban, it found itself lacking a local face who could communicate directly and well with regulators and the media, Mint said in a 10 June story.

 

In contrast with Nestlé India, Hindustan Unilever Limited (HUL), also a multinational, has been led by Indians since Prakash Tandon took over as the first chairman of the company in 1961. At that time, 191 of HUL’s 205 managers were Indian, a timeline on the company’s website says.

 

The move to appoint an Indian as the managing director of the company is a step in the right direction, said analysts. “In such a large and diverse country like India, having an Indian as CEO is critical,” said Abneesh Roy, associate director, Institutional Equities-Research, Edelweiss Securities Ltd, while pointing out that multinationals like HUL and Procter and Gamble Co. have Indian chief executive officers running the business.

 

Interestingly, Nestlé India has enjoyed significant success in localizing its products or at least their usage—first with Milkmaid, a condensed milk offering that the company cleverly positioned as the ideal ingredient in tasty Indian desserts and then with Maggi, which has now been taken off the shelves.

 

Since 5 June when the ban was imposed on Maggi, Nestlé has destroyed 24,000 tonnes of the 30,000 tonnes of Maggi stock. This has caused a loss of Rs.25000.000 Million, amounting to 20% of the company’s annual revenues in India, Nestlé India’s counsel Iqbal Chagla said last Friday before the Bombay high court where the company is appealing against the national food regulator’s ban.

 

The regulator, Food Safety and Standards Authority of India (FSSAI), termed Maggi “unsafe and hazardous” for human consumption after finding high levels of lead and the presence of taste enhancer monosodium glutamate, on 5 June. The FSSAI also noted the company’s violation of product approvals in launching Maggi Oats, terming the act a breach of trust.

 

On Friday, shares of Nestlé India closed at Rs.6025.85, down 0.46% on BSE, while the Sensex closed at 28.112.31, down 0.91%.

 

NESTLE RESUMES MAGGI NOODLES PRODUCTION AT ALL FIVE PLANTS IN INDIA

 

Mon, November 30 2015

 

Nestle, which relaunched Maggi noodles on 9 November after a 5-month ban, resumed production at its Tahliwal plant in Himachal Pradesh

 

New Delhi: Nestle India Limited on Monday said it has resumed production of Maggi noodles at all five facilities in India.

 

Nestle, which relaunched Maggi noodles on 9 November after a five-month ban, has started production of Maggi noodles from its Tahliwal plant in Himachal Pradesh. Nestle manufacturers Maggi noodles at its plants in Nanjangud (Karnataka), Moga (Punjab), Bicholim (Goa), Tahliwal and Pantnagar in Himachal Pradesh.

 

“The company has resumed manufacturing of Maggi noodles at its Tahliwal (Himachal Pradesh) factory. With this, the company has resumed manufacture of Maggi noodles at all five noodle manufacturing facilities,” Nestle said in a BSE filing.

 

In June, the Food Safety and Standards Authority of India (FSSAI) had banned Maggi noodles, saying it was “unsafe and hazardous” for consumption after finding lead content beyond permissible limits. Nestle India, which took a hit ofRs.450 crore including destroying over 30,000 tonnes of the instant noodles since June when it was banned because of alleged excessive lead content, had stated that it would continue with the existing formula of the product and would not change the ingredients.

 

The consumer affairs ministry had also filed a class action suit against Nestle India, seeking about Rs.6400.000 Million in damages for alleged unfair trade practices, false labeling and misleading advertisements. It was for the first time that the ministry dragged a company to the National Consumer Disputes Redressal Commission (NCDRC) using a provision in the nearly three ­decade-­old Consumer Protection Act.

 

Reeling under the Maggi ban, Nestle India had on 29 October reported 60.1% decline in stand-alone net profit atRs.1242.000 Million for the third quarter ended September 2015. Its net sales had declined 32.12% to Rs.17362.000 Million. It had reported a stand-alone loss of Rs.644.000 Million in the second quarter for the first time in last 15 years due to the ban on Maggi.

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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.66.75

UK Pound

1

Rs.100.29

Euro

1

Rs.72.89

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Analysis Done by :

KAR

 

 

Report Prepared by :

PNM

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

10

PAID-UP CAPITAL

1~10

9

OPERATING SCALE

1~10

10

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

10

--PROFITABILITY 

1~10

9

--LIQUIDITY

1~10

9

--LEVERAGE

1~10

9

--RESERVES

1~10

10

--CREDIT LINES

1~10

10

--MARGINS

-5~5

---

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--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

 

86

 

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

 

--

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.