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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

501696

Report Date :

03.04.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

MARICO LIMITED (w.e.f 2005)

 

 

Formerly Known As :

MARICO INDUSTRIES LIMITED (w.e.f 31.10.1989)

 

MARICO FOODS LIMITED

 

 

Registered Office :

7th Floor, Grande Palladium, 175, CST Road, Kalina, Santacruz (East), Mumbai – 400098, Maharashtra

Tel. No.:

91-22-66480480

 

 

Country :

India

 

 

Financials (as on) :

31.03.2017

 

 

Date of Incorporation :

13.10.1988

 

 

Com. Reg. No.:

11-049208

 

 

Capital Investment / Paid-up Capital :

INR 1290.500 Million

 

 

CIN No.:

[Company Identification No.]

L15140MH1988PLC049208

 

 

IEC No.:

[Import-Export Code No.]

0390000370

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

GSTN :

[Goods & Service Tax Registration No.]

Not Divulged

 

 

PAN No.:

[Permanent Account No.]

AAACM7493G

 

 

Legal Form :

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

 

 

Line of Business :

Subject manufactures and markets consumer products in India and internationally. It offers coconut oil, hair oils, refined edible oils, anti-lice treatments, fabric care, functional and other processed foods, hair creams and gels, hair serums, shampoos, shower gels, hair relaxers and straighteners, deodorants, and other consumer products and by-products. (Registered activity)

 

 

No. of Employees :

1588 (Approximately)

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

A++

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

"Subject was established in the year 1988 and it is a leading manufacturer of coconut oil, hair oils and premium refined edible oils in consumer packs.

 

The company holds a number of brands including Kaya Limited, Parachute, Saffola, Hair&Care, Nihar, Mediker, Revive, Manjal, Livon, Set Wet, Zatak, Fiancee, HairCode, Eclipse, X-Men, Hercules, Caivil, Code 10 and Black Chic.

 

For the FY-17, the company has achieved growth in its revenue as compared to previous year revenue but has maintained a healthy profitability margin at 17.31%.

 

Marico's strong market position is underpinned by its market leadership across product categories including branded coconut oil, value-added hair and super-premium refined edible oil.

 

The company has a robust financial risk profile because of a healthy capital structure and strong debt protection metrics. The financial risk profile is likely to remain strong, supported by robust cash accrual and the absence of any significant, debt-funded capital expenditure.

 

Payment seems to be regular and as per commitment.

 

In view of established market position, 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.

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

Long-Term Bank Facilities = AA+

Rating Explanation

High degree of safety and very low credit risk.

Date

28th April 2017

 

Rating Agency Name

CRISIL

Rating

Short-Term Bank Facilities = A1+

Rating Explanation

Very strong degree of safety and carry lowest credit risk.

Date

28th April 2017

 

 

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 31-03-2016.

 

 

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

 

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 03.04.2018

 

 

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

 

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

 

 

INFORMATION DENIED

 

MANAGEMENT NON-COOPERATIVE: Tel. No.: 91-22-66480480

 

 

LOCATIONS

 

Registered Office/ Corporate Office / Head Office :

7th Floor, Grande Palladium, 175, CST Road, Kalina, Santacruz (East), Mumbai – 400098, Maharashtra, India

Tel. No.:

91-22-66480480

Fax No.:

91-22-66490114/ 26500159

E-Mail :

investor@mailcoindia.net

Website :

www.marico.com

www.maricobd.com

www.maricoinnovationfoundation.org

www.parachuteadvansed.com

www.saffolalife.com

www.setwet.com

www.livonhairgain.com

www.livonilovemyhair.com

www.fitfoodie.in

www.artofoiling.com

www.indiaparenting.com/bio-oil

 

 

Regional Offices :

Located At:

 

  • South RO:

510 and 511, B Block, 5th Floor, Swapnalok Complex, S. D Road, Secunderabad-500003, Telangana, India

 

  • West RO :

Plot No. 23/C, Mahal Industrial Estate, Mahakali Caves Road, Land Mark : Before Paper Box Factory, Opposite Andhra Bank and Travellers Inn hotel,  Andheri (East) Mumbai - 400 093, Maharashtra, India

Tel: 91-22-26732439-40, 26732472

 

  • East RO :

Room No 416, 4th floor, Krishna Building, 224 AJC Bose Road, Kolkata -700017, India

 

  • North RO :

Unit No.: JA 1101, 11th Floor, DLF Tower – “A”, Jasola, Delhi, India

 

 

Buying Offices:

1st Floor, Sunshine Building, 1056, Avinashi Road, Coimbatore, Tamilnadu, India

 

 

Factories :

Located At :

 

  • Kanjikode
  • Pondicherry
  • Jalgaon
  • Dehradun
  • Goa
  • Baddi
  • Paonta Sahib
  • Paldhi
  • Perundurai

 

 

DIRECTORS

 

As on 31.03.2017

 

Name :

Mr. Rajendra Kishore Mariwala

Designation :

Director

Address :

2-5, Sudha Kunj, 2nd Floor, 3, Tardeo Road, Tulsiwadi, Hajiali, Mumbai – 400034, Maharashtra, India

Date of Appointment :

26.07.2005

DIN No.:

00007246

 

 

Name :

Mr. Nikhil Nirvan Khattau

Designation :

Director

Address :

Bon Azur, Beachfront Suites And Pent Pointe Aux Biches NA MU

Date of Appointment :

18.07.2002

DIN No.:

00017880

 

 

Name :

Mr. Nagesh Satyanarayan Basavanhalli

Designation :

Director

Address :

81/82, B Wing, Park Plaza, New Yari Road, Andheri (West), Mumbai - 400061, Maharashtra, India

Date of Appointment :

16.07.2010

DIN No.:

00027595

 

 

Name :

Hema Ravichandar

Designation :

Director

Address :

3-C, Moyenville Place, No.18, Moyenville Road, Langford Town, Bangalore - 560025, Karnataka, India

Date of Appointment :

26.07.2005

DIN No.:

00032929

Name :

Mr. Rajeev Bakshi

Designation :

Director

Address :

House No C-30, 2nd Floor Westend Colony Tularam Marg, South West, Delhi – 110021, India

Date of Appointment :

17.07.2003

DIN No.:

00044621

 

 

Name :

Mr. Harsh Charandas Mariwala

Designation :

Director

Address :

2nd Floor, 7TH On The Hill, Auxilium Convent Road, Rajendra Kumar Chowk, Pali Hill, Bandra (West), Mumbai - 400050, Maharashtra, India

Date of Birth/Age :

66 years

Qualification :

Graduate in Commerce from Mumbai University

Date of Appointment :

13.10.1988

DIN No.:

00210342

 

 

Name :

Mr. Rishabh Harsh Mariwala

Designation :

Director

Address :

1st Floor, Seven on Hill, Auxillium Convent Lane, Near Rajendra Kumar Chowk, Pali Hill Bandra (West), Mumbai – 400050, Maharashtra, India

Date of Birth/Age :

35 years

Qualification :

Graduate from Zarb School of Business, Hofstra University, New York, USA

Date of Appointment :

02.05.2017

DIN No.:

03072284

 

 

Name :

Saugata Gupta

Designation :

Managing Director

Address :

B - 1002, Rustomjee Oriana, MIG Colony Gandhi Nagar, Bandra (East), Mumbai - 400051, Maharashtra, India

Date of Appointment :

01.04.2014

DIN No.:

05251806

 

 

Name :

Mr. Ananth Sankaranarayanan

Designation :

Director

Address :

Villa 155, Adarsh Palm Retreat, Devarabisanalli Bellandur Post, Bangalore -  560037, Karnataka, India

Date of Birth/Age :

40 years

Qualification :

Bachelor’s degree in Engineering from University of Madras and a Masters from the University of Michigan, in Industrial Engineering and Operations Research.

Date of Appointment :

26.06.2017

DIN No.:

07527676

 

KEY EXECUTIVES

 

Name :

Mr. Vivek Anant Karve

Designation :

Chief Financial Officer

Address :

302, Yashwant Chittaranjan Road, Vile Parle (East), Mumbai - 400057, Maharashtra, India

Date of Appointment :

01.04.2014

PAN No.:

AAFPK1157P

 

 

Name :

Mrs. Hemangi Yateen Ghag

Designation :

Company Secretary

Address :

196-B, Panjrapole Building. No.2, Room No.5 Girgaum Gaiwadi, Girgaum, Mumbai - 400004, Maharashtra, India

Date of Appointment :

30.10.2017

PAN No.:

AARPW6933B

 

 

Audit Committee:
  • Mr. Nikhil Khattau - Chairman
  • Ms. Hema Ravichandar - Member
  • Mr. B. S. Nagesh - Member
  • Mr. Rajen Mariwala - Member
  • Mr. Surender Sharma - Secretary to the Committee

 

 

Corporate Governance Committee
  • Ms. Hema Ravichandar - Chairperson
  • Mr. Anand Kripalu - Member
  • Mr. B.S. Nagesh - Member
  • Mr. Rajeev Bakshi – Member
  • Mr. Ashutosh Telang - Secretary to the Committee

 

 

Corporate Social

Responsibility Committee
  • Mr. Atul Choksey* - Chairman
  • Mr. Rajeev Bakshi** - Chairman
  • Mr. Harsh Mariwala - Member
  • Mr. Rajen Mariwala - Member
  • Mr. Saugata Gupta - Member
  • Ms. Priya Kapadia - Secretary to the
  • Committee
  • *Ceased to be the Chairman w.e.f.
  • April 1, 2017
  • **Elected as the Chairman w.e.f. May 2, 2017

 

 

Risk Management Committee
  • Mr. Harsh Mariwala - Chairman
  • Mr. Saugata Gupta - Member
  • Mr. Vivek Karve - Member & Secretary to
  • the Committee
  • Members of top Management
  • Team - Permanent Invitees

 

 

Stakeholder Relationship

Committee
  • Mr. Nikhil Khattau - Chairman
  • Mr. Rajen Mariwala - Member
  • Mr. Surender Sharma - Secretary to the Committee

 

 

MANAGEMENT TEAM:

 

Name :

Mr. Saugata Gupta

Designation :

Managing Director and CEO

 

 

Name :

Ms. Anuradha Aggarwal

Designation :

Chief Marketing Officer

 

 

Name :

Mr. Ashish Joshi

Designation :

Chief Operating Officer- South East Asia, Middle East and Africa Business

 

 

Name :

Mr. Ashutosh Telang

Designation :

Chief Human Resources Officer

 

 

Name :

Mr. Jitendra Mahajan

Designation :

Chief Supply Chain Officer

 

 

Name :

Mr. Mukesh Kripalani

Designation :

Chief Business Process Transformation and IT

 

 

Name :

Mr. Pankaj Saluja

Designation :

Chief Strategy, M and A and New Business

 

 

Name :

Mr. Sanjay Mishra

Designation :

Chief Operating Officer - India Sales and Bangladesh Business

 

 

Name :

Dr. Sudhakar Mhaskar

Designation :

Chief Technology Officer

 

 

Name :

Mr. Suresh M. S. Jagirdar

Designation :

Chief Legal Counsel

 

 

Name :

Mr. Vivek Karve

Designation :

Chief Financial Officer

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on December 2017

 

Category of shareholder

No. of fully paid up equity shares held

Shareholding as a % of total no. of shares

(A) Promoter & Promoter Group

770730240

59.71

(B) Public

518109488

40.14

(C2) Shares held by Employee Trust

1931470

0.15

Grand Total

1290771198

100.00

 

 

Statement showing shareholding pattern of the Promoter and Promoter Group

 

Category of shareholder

No. of fully paid up equity shares held

Shareholding as a % of total no. of shares

A1) Indian

0.00

Individuals/Hindu undivided Family

750633240

58.15

Harsh C Mariwala with Kishore V Mariwala for Taurus Family Trust

148465000

11.50

Harsh C Mariwala with Kishore V Mariwala for Gemini Family Trust

148460600

11.50

Harsh C Mariwala with Kishore V Mariwala for Valentine Family Trust

148459200

11.50

Harsh C Mariwala with Kishore V Mariwala for Aquarius Family Trust

148446200

11.50

Rajvi H Mariwala

28408000

2.20

Rishabh H Mariwala

24976500

1.94

Archana H Mariwala

23444100

1.82

Harsh C Mariwala

19862900

1.54

Ravindra.K.Mariwala

13954540

1.08

Harshraj C Mariwala (Huf)

12240000

0.95

Hema K Mariwala

7679480

0.59

Anjali R Mariwala

7414700

0.57

Paula R Mariwala

7189100

0.56

Rajen K Mariwala

5532900

0.43

Kishore V Mariwala

2445220

0.19

Pallavi Jaikishan Panchal

1832000

0.14

Malika Chirayu Amin

1800000

0.14

Kishore V Mariwala for Anandita Trust

5700

0.00

Kishore V Mariwala for Arnav Trust

5700

0.00

Kishore V Mariwala for Vibhav Trust

5700

0.00

Kishore V Mariwala for Taarika Trust

5700

0.00

Any Other (specify)

18297000

1.42

The Bombay Oil Private Limited

18297000

1.42

Sub Total A1

768930240

59.57

A2) Foreign

0.00

Individuals (NonResident Individuals/ Foreign Individuals)

1800000

0.14

Preeti Gautam Shah

1800000

0.14

Sub Total A2

1800000

0.14

A=A1+A2

770730240

59.71

 

Statement showing shareholding pattern of the Public shareholder

 

Category & Name of the Shareholders

No. of fully paid up equity shares held

Shareholding % calculated as per SCRR, 1957 As a % of (A+B+C2)

B1) Institutions

0

0.00

Mutual Funds/

23242456

1.80

Alternate Investment Funds

656323

0.05

Foreign Portfolio Investors

358262787

27.76

First State Investments Icvc- Stewart Investors Asia Pacific Leaders Fund

46995220

3.64

Cartica Capital Ltd

33461547

2.59

Arisaig India Fund Limited

28647339

2.22

Kuwait Investment Authority Fund 223

15400896

1.19

Financial Institutions/ Banks

1524033

0.12

Insurance Companies

50171805

3.89

Life Insurance Corporation Of India

46610722

3.61

Sub Total B1

433857404

33.61

B2) Central Government/ State Government(s)/ President of India

0

0.00

Central Government/ State Government(s)/ President of India

1462051

0.11

Sub Total B2

1462051

0.11

B3) Non-Institutions

0

0.00

Individual share capital upto INR 0.200 Million

39360378

3.05

Individual share capital in excess of INR 0.200 Million

7713797

0.60

Any Other (specify)

35715858

2.77

Trusts

102662

0.01

Foreign Individuals

3260

0.00

HUF

1593808

0.12

NRI – Non- Repat

1316381

0.10

NRI – Repat

2410745

0.19

Foreign Portfolio Investors (Category III)

2000

0.00

Clearing Members

415937

0.03

Bodies Corporate

29862936

2.31

Prazim Trading And Investment Co. Pvt. Ltd.

16372395

1.27

INVESTOR EDUCATION AND PROTECTION FUND AUTHORITY MINISTRY OF CORPORATE AFFAIRS

8129

0.00

Sub Total B3

82790033

6.41

B=B1+B2+B3

518109488

40.14

 

 

BUSINESS DETAILS

 

Line of Business :

Subject manufactures and markets consumer products in India and internationally. It offers coconut oil, hair oils, refined edible oils, anti-lice treatments, fabric care, functional and other processed foods, hair creams and gels, hair serums, shampoos, shower gels, hair relaxers and straighteners, deodorants, and other consumer products and by-products. (Registered activity)

 

 

Products / Services :

NIC Code No.

Product Description

10402

Edible Oils

20236

Value Added Hair Oils

 

·         Coconut Oil

·         Hair Oils

·         Refined Edible Oils

·         Anti-Lice Treatments

·         Fabric Care

·         Functional And Other Processed Foods

·         Hair Creams And Gels

·         Hair Serums

·         Shampoos

·         Shower Gels

·         Hair Relaxers And Straighteners

·         Deodorants

 

 

Brand Names :
  • Parachute
  • Parachute Advansed
  • Nihar
  • Nihar Naturals
  • Saffola
  • Hair and Care
  • Revive
  • Mediker
  • Livon, Setwet

 

 

Agencies Held :

Not Divulged

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

Not Divulged

 

PRODUCTION STATUS NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Maximum Limit Dealt :

--

Experience :

--

Remark:

--

 

 

Customers :

 

Reference :

Not Divulged

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Maximum Limit Dealt :

--

Experience :

--

Remark:

--

 

 

No. of Employees :

1588 (Approximately)

 

 

Bankers :
  • Axis Bank Limited
  • Barclays Bank PLC
  • BNP
  • Paribas
  • Citibank N.A.
  • HDFC Bank Limited
  • ICICI Bank Limited
  • Kotak Mahindra Bank Limited
  • Standard Chartered Bank
  • State Bank of India
  • The Hong Kong and Shanghai
  • Banking Corporation Limited

 

 

Facilities :

Secured Loan

31.03.2017

(INR in Million)

31.03.2016

(INR in Million)

Short-term borrowings

 

 

Loans repayable on demand From banks - Cash credit

0.000

108.300

Pre-shipment credit in Foreign Currency

483.500

0.000

Working Capital Demand Loan

402.000

0.000

Export Packing credit

200.000

150.000

Total

1083.500

258.300

 

Auditors :

 

Name :

BSR and Company LLP

Chartered Accountants

Address :

5th Floor, Lodha Excelus, Apollo Mills Compound, N.M. Joshi Marg, Mahalaxmi, Mumbai – 400011, Maharashtra, India

Tel. No.:

91-22-43455300

Fax No.:

91-22-43455399

 

 

Auditors :

 

Name :

Price Waterhouse

Chartered Accountants

 

 

Internal Auditors :

Ernst and Young LLP

 

 

Cost Auditor :

Ashwin Solanki and Associates

 

 

Secretarial Auditor :

Dr. K. R. Chandratre

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Subsidiary companies:
  • Marico Bangladesh Limited (MBL),Bangladesh
  • Marico Middle East FZE (MME), UAE
  • Marico Bangladesh Industries Limited (MBLIL), Bangladesh
  • Egyptian American Company for Investment and Industrial Development SAE (EAIIDC), Egypt
  • Marico Malaysia Sdn. Bhd. (MMSB), Malaysia
  • MEL Consumer Care SAE (MELCC), Egypt
  • Marico Egypt Industries Company (MEIC), Egypt
  • Marico South Africa Consumer Care (Pty) Limited (MSACC), South Africa
  • Marico South Africa (Pty) Limited (MSA), South Africa
  • Marico South East Asia Corporation (Formerly known as International Consumer Products Corporation), Vietnam
  • Beaute Cosmetique Societe Par Actions (BCS), Vietnam
  • Thuan Phat Foodstuff Joint Stock company (TPF), Vietnam
  • Marico Consumer Care Limited (MCCL), India
  • Halite Personal Care India Private Limited (A Company under Voluntary Liquidation), India
  • Marico Innovation Foundation (MIF), India

 

 

 

 

Post-employment benefit controlled trust :
  • Marico Limited Employees Provident Fund
  • Marico Limited Employees Gratuity Fund

 

 

Others - Entities in which above (e) has significant influence and transactions have taken place: :
  • Marico Kaya Enterprises Limited (upto 18th April, 2015)
  • Kaya Limited
  • Kaya Middle East FZE

 

 

CAPITAL STRUCTURE

 

After 01.08.2017

 

Authorised Capital: INR 2150.000 Million

 

Issued, Subscribed & Paid-up Capital: INR 1290.864 Million

 

 

As on 31.03.2017

 

Authorised Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

1500000000

Equity Shares

INR 1/- each

INR 1500.000 Million

6500000

Preference Shares

INR 10/- each

INR 65.000 Million

 

Total

 

INR 1565.000 Million

 

Issued, Subscribed & Paid-up Capital:

 

No. of Shares

Type

Value

Amount

 

 

 

 

1290471198

Equity Shares

INR 1/- each

INR 1290.500 Million

 

 

 

 

 

 

(i) Movements in equity share capital

 

Particulars

No of shares

Equity Share capital

 

INR in Million

(par value)

As at 1st April, 2015

645.000

645.000

Shares issued during the year - ESOP (refer note 33(a))

0.100

0.100

Bonus Issue (refer note (v) below)

645.100

645.100

As at 31st March, 2016

1290.200

1290.000

Increase during the year

 

 

Shares issued during the year - ESOP (refer note 33(a))

0.300

0.300

As at 31st March, 2017

1290.500

1290.500

 

(ii) Rights, preferences and restrictions attached to equity shares

 

Equity Shares: The Company has one class of equity shares having a par value of Re.1 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

 

(iii) Shares reserved for issue under options

Information relating to Marico ESOS 2007, Marico ESOS 2014, MD CEO ESOP Plan 2014 and including details of options issued, exercised and lapsed during the financial year and options outstanding at the end of the reporting period, is set out in note 33.

 

(iv) Details of shareholders holding more than 5% shares in the company

 

Name of Shareholder

As on 31.03.2017

Number of Shares

% holding

Equity Shares of Re. 1/- each fully paid-up

 

 

Harsh C Mariwala with Kishore V Mariwala (For Valentine Family Trust)

148,337,200

11.49

Harsh C Mariwala with Kishore V Mariwala (For Aquarius Family Trust)

148,338,200

11.49

Harsh C Mariwala with Kishore V Mariwala (For Taurus Family Trust)

148,338,000

11.49

Harsh C Mariwala with Kishore V Mariwala (For Gemini Family Trust)

148,338,100

11.49

First State Investments Services (UK) Ltd (along with Persons acting in concert)

97,225,880

7.53

 

(v) During the year ended 31st March, 2016, the Company has issued 645,085,599 fully paid-up bonus equity shares of face value Re. 1 each in the ratio of 1:1 with record date of 24th December, 2015. As a result EPS has been adjusted for reporting as well as for all the comparative periods.

 

Aggregate number of shares allotted as fully paid-up by way of bonus shares

For the year ended March 31, 2017

Equity shares allotted as fully paid up bonus shares by capitalization of general reserve

645085599

 

FINANCIAL DATA

[all figures are in INR Million]

 

ABRIDGED BALANCE SHEET - STANDALONE

 

SOURCES OF FUNDS

31.03.2017

31.03.2016

31.03.2015

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

1290.500

1290.200

645.000

(b) Reserves & Surplus

27937.300

24244.900

22783.900

(c) Other Reserve

14.600

(152.400)

0.000

(d) 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)

29242.400

25382.700

23428.900

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

0.000

0.000

1687.400

(b) Deferred tax liabilities (Net)

97.500

0.000

122.500

(c) Other long term liabilities

64.400

29.700

0.000

(d) long-term provisions

0.000

0.000

17.000

Total Non-current Liabilities (3)

161.900

29.700

1826.900

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

1083.500

258.300

86.400

(b) Trade payables

4762.400

4847.800

4043.800

(c) Other current liabilities

1507.800

3360.400

2333.800

(d) Short-term provisions

564.100

506.400

590.800

Total Current Liabilities (4)

7917.800

8972.900

7054.800

 

 

 

 

TOTAL

37322.100

34385.300

32310.600

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

4739.100

4361.800

4580.000

(ii) Intangible Assets

215.800

233.800

235.600

(iii) Capital work-in-progress

79.400

365.400

20.700

(iv) Intangible assets under development

0.000

0.000

0.000

(v) Investment in subsidiaries and joint venture

11056.400

10906.900

0.000

(b) Non-current Investments

571.200

413.900

11288.600

(c) Deferred tax assets (net)

0.000

545.800

0.000

(d)  Long-term Loan and Advances

37.300

37.500

691.900

(e) Other Non-current assets

677.500

784.500

1206.700

Total Non-Current Assets

17376.700

17649.600

18023.500

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

5014.900

4387.900

2061.800

(b) Inventories

10829.600

7675.600

7915.900

(c) Trade receivables

2276.100

1921.000

1305.500

(d) Cash and cash equivalents

685.300

1401.700

969.700

(e) Short-term loans and advances

43.600

40.300

1703.200

(f) Other current assets

1095.900

1309.200

331.000

Total Current Assets

19945.400

16735.700

14287.100

 

 

 

 

TOTAL

37322.100

34385.300

32310.600

 

 

PROFIT & LOSS ACCOUNT - STANDALONE

 

 

PARTICULARS

31.03.2017

31.03.2016

31.03.2015

 

SALES

 

 

 

 

Income

48688.800

48679.900

46812.000

 

Other Income

2618.600

1905.600

1408.000

 

TOTAL

51307.400

50585.500

48220.000

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

23522.100

24854.600

26758.900

 

Purchases of Stock-in-Trade

1694.400

799.500

1347.100

 

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

-474.400

370.600

-948.700

 

Excise duty

181.300

71.300

0.000

 

Employees benefits expense

2509.200

2282.000

1971.700

 

Other expenses

11690.700

12010.200

11063.400

 

TOTAL

39123.300

40388.200

40192.400

 

 

 

 

 

 

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

12184.100

10197.300

8027.600

 

 

 

 

 

Less

FINANCIAL EXPENSES

125.900

151.700

169.700

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

12058.200

10045.600

7857.900

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

641.000

688.200

547.500

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

11417.200

9357.400

7310.400

 

 

 

 

 

Less

TAX

2990.200

2444.800

1858.700

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

8427.000

6912.600

5451.700

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

19333.100

17447.800

13936.3

 

 

 

 

 

Add

Earlier year excess proposed dividend and dividend distribution tax (L)

0.000

0.000

0.000

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

Remeasurements of post-employment benefit obligation, net of tax

11.800

18.700

0.000

 

Distribution to shareholders

0.000

0.000

1612.400

 

Dividend

4515.900

4354.300

111.700

 

Tax on dividend (net of tax on dividend received from Indian and foreign subsidiaries of INR 348.900
Million) (Previous year INR 232.200 Million)

570.300

654.300

132.700

 

Total

5098.000

5027.300

1856.800

 

 

 

 

 

 

Balance Carried to the B/S

22662.100

19333.100

17531.200

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

F.O.B. Value of Exports

NA

NA

2070.900

 

Royalty

NA

NA

71.500

 

Dividend

NA

NA

948.700

 

Interest

NA

NA

7.100

 

Miscellaneous Income

NA

NA

6.800

 

TOTAL EARNINGS

NA

NA

3105.000

 

 

 

 

 

 

IMPORTS

 

 

 

 

Raw Materials

NA

NA

1558.500

 

Packing Materials

NA

NA

10.900

 

Capital Goods

NA

NA

35.600

 

Stock in trade

NA

NA

39.900

 

TOTAL IMPORTS

NA

NA

1644.900

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

6.55

5.37

4.23

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2017

31.03.2016

31.03.2015

Current Maturities of Long term debt

NA

1785.300

937.500

Cash generated from operations

7025.900

8280.800

7035.200

Net cash flow from operating activity

4620.100

6290.100

5520.500

 

 

QUARTERLY RESULTS

 

Particulars

30.06.2017

30.09.2017

31.12.2017

Audited / Unaudited

Unaudited

Unaudited

Unaudited

 

1ST Quarter

2nd Quarter

3rd Quarter

Net Sales

13836.900

12462.800

13375.900

Total Expenditure

11319.800

10490.800

10850.200

PBIDT (Excl OI)

2517.100

1972.000

2525.700

Other Income

214.600

322.100

718.900

Operating Profit

2731.700

2294.100

3244.600

Interest

19.900

18.700

18.600

Exceptional Items

NA

NA

NA

PBDT

2711.800

2275.400

3226.000

Depreciation

155.100

179.300

162.600

Profit Before Tax

2556.700

2096.100

3063.400

Tax

576.500

493.000

662.300

Provisions and contingencies

NA

NA

NA

Profit After Tax

1980.200

1603.100

2401.100

Extraordinary Items

NA

NA

NA

Prior Period Expenses

NA

NA

NA

Other Adjustments

NA

NA

NA

Net Profit

1980.200

1603.100

2401.100

 

 

KEY RATIOS

 

EFFICIENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Average Collection Days

(Sundry Debtors / Income * 365 Days)

17.06

14.40

10.18

 

 

 

 

Account Receivables Turnover

(Income / Sundry Debtors)

21.39

25.34

35.86

 

 

 

 

Average Payment Days

(Sundry Creditors / Purchases * 365 Days)

68.93

68.97

52.52

 

 

 

 

Inventory Turnover

(Operating Income / Inventories)

1.13

1.33

1.01

 

 

 

 

Asset Turnover

(Operating Income / Net Fixed Assets)

2.42

2.06

1.66

 

 

LEVERAGE RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Debt Ratio

((Borrowing + Current Liabilities) / Total Assets)

0.21

0.26

0.27

 

 

 

 

Debt Equity Ratio

(Total Liability / Networth)

0.04

0.01

0.08

 

 

 

 

Current Liabilities to Networth

(Current Liabilities / Net Worth)

0.27

0.35

0.30

 

 

 

 

Fixed Assets to Networth

(Net Fixed Assets / Networth)

0.17

0.20

0.21

 

 

 

 

Interest Coverage Ratio

(PBIT / Financial Charges)

96.78

67.22

47.30

 

 

PROFITABILITY RATIOS

 

PARTICULARS

 

 

31.03.2017

31.03.2016

31.03.2015

Net Profit Margin

((PAT / Sales) * 100)

%

17.31

14.20

11.65

 

 

 

 

 

Return on Total Assets

((PAT / Total Assets) * 100)

%

22.58

20.10

16.87

 

 

 

 

 

Return on Investment (ROI)

((PAT / Networth) * 100)

%

28.82

27.23

23.27

 

 

SOLVENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Current Ratio

(Current Assets / Current Liabilities)

2.52

1.87

2.03

 

 

 

 

Quick Ratio

((Current Assets – Inventories) / Current Liabilities)

1.15

1.01

0.90

 

 

 

 

G-Score Ratio Financial

(Networth / Total Assets)

0.78

0.74

0.73

 

 

 

 

G-Score Ratio Debt

(Debts / Equity Capital)

0.84

0.20

2.75

 

 

 

 

G-Score Ratio Liquidity

(Total Current Assets / Total Current Liabilities)

2.52

1.87

2.03

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

 

 

STOCK PRICES

 

Face Value

INR 1.00/-

Market Value

INR 326.30/-

 

 

FINANCIAL ANALYSIS

[all figures are INR Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Share Capital

645.000

1290.200

1290.500

Reserves & Surplus

22783.900

24244.900

27937.300

Other Reserve

0.000

(152.400)

14.600

Net worth

23428.900

25382.700

29242.400

 

 

 

 

Long Term borrowings

1687.400

0.000

0.000

Short Term borrowings

86.400

258.300

1083.500

Total borrowings

1773.800

258.300

1083.500

Debt/Equity ratio

0.076

0.010

0.037

 

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Sales

46812.000

48679.900

48688.800

 

 

3.990

0.018

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Sales

46812.000

48679.900

48688.800

Profit

5451.700

6912.600

8427.000

 

11.65%

14.20%

17.31%

 

 

 

ABRIDGED BALANCE SHEET – (CONSOLIDATED)

 

SOURCES OF FUNDS

 

31.03.2017

31.03.2016

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

1290.500

1290.200

(b) Reserves & Surplus

 

22329.900

19076.400

c) Other Reserve

 

(363.600)

(192.900)

(d) Money received against share warrants

 

0.000

0.000

 

 

 

 

(2) Non-controlling interests

 

133.400

143.100

Total Shareholders’ Funds (1) + (2)

 

23390.200

20316.800

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

 

0.000

0.000

(b) Deferred tax liabilities (Net)

 

220.300

228.400

(c) Other long term liabilities

 

158.600

128.100

(d) long-term provisions

 

0.000

0.000

Total Non-current Liabilities (3)

 

378.900

356.500

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

2388.000

1527.900

(b) Trade payables

 

6966.000

6690.400

(c) Other current liabilities

 

2308.000

4413.700

(d) Short-term provisions

 

564.100

506.400

Total Current Liabilities (4)

 

12226.100

13138.400

 

 

 

 

TOTAL

 

35995.200

33811.700

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

5471.900

5243.400

(ii) Intangible Assets

 

280.800

287.300

(iii) Capital work-in-progress

 

111.600

367.300

(iv) Intangible assets under development

 

0.000

0.000

(v) Good Will

 

4794.500

4973.600

(b) Non-current Investments

 

584.100

425.800

(c) Deferred tax assets (net)

 

95.400

649.300

(d)  Long-term Loan and Advances

 

37.300

37.500

(e) Other Non-current assets

 

802.100

758.100

Total Non-Current Assets

 

12177.700

12742.300

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

5335.000

4697.900

(b) Inventories

 

12534.400

9255.600

(c) Trade receivables

 

2469.900

2520.900

(d) Cash and cash equivalents

 

2272.800

3171.400

(e) Short-term loans and advances

 

61.200

50.000

(f) Other current assets

 

1144.200

1373.600

Total Current Assets

 

23817.500

21069.400

 

 

 

 

TOTAL

 

35995.200

33811.700

 

 

 

PROFIT & LOSS ACCOUNT– (CONSOLIDATED)

 

 

PARTICULARS

31.03.2017

31.03.2016

 

SALES

 

 

 

Income

59359.200

60244.500

 

Other Income

973.100

933.300

 

TOTAL

60332.300

61177.800

 

 

 

 

Less

EXPENSES

 

 

 

Cost of Materials Consumed

27652.300

28555.600

 

Purchases of Stock-in-Trade

1223.900

1548.900

 

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

(566.700)

601.000

 

Excise Duty

181.300

71.300

 

Employees benefits expense

4041.800

3734.000

 

Share of net profit/ (loss) of joint ventures accounted for using the equity method

10.000

5.300

 

Other expenses

15233.900

15219.900

 

TOTAL

47776.500

49736.000

 

 

 

 

 

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

12555.800

11441.800

 

 

 

 

Less

FINANCIAL EXPENSES

165.800

206.200

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

12390.000

11235.600

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

903.000

948.600

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

11487.000

10287.000

 

 

 

 

Less

TAX

3377.300

3053.700

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

8109.700

7233.300

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

6.21

5.53

 

 

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

Yes

8

Designation of contact person

Yes

9

Promoter’s background

Yes

10

Date of Birth of Proprietor / Partners / Directors

Yes

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

 

 

BACK GROUND AND OPERATIONS MARICO LIMITED (“MARICO” OR ‘THE COMPANY’), HEADQUARTERED IN

 

Mumbai, Maharashtra, India, carries on business in branded consumer products. Marico manufactures and markets products under the brands such as Parachute, Parachute Advansed, Nihar, Nihar Naturals, Saffola, Hair and Care, Revive, Mediker, Livon, Setwet, etc. Marico’s products reach its consumers through retail outlets serviced by Marico’s distribution network comprising regional offices, carrying and forwarding agents, redistribution centers and distributors spread all over India.

 

 

REVIEW OF OPERATIONS

During 2017, Marico achieved revenue from operations of INR 59860.000 Million, a decline of 1% over FY16. Volume growth for the year was at 4%. The value growth was lower owing to price reductions in the Coconut Oil portfolio in India and Bangladesh and currency devaluation in the Egypt region in H2FY17. The operating margin was at 19.5%. The business reported bottom line of INR 7990.000 Million, a satisfactory growth of 12% over last year.’

 

Marico India, the domestic business, achieved a turnover of INR 45790.000 Million in FY17, a decline of 2% over last year. Volume growth for the year was at 4%. The value growth was lower owing to price reductions in the Coconut Oil portfolio. This year witnessed the demonetization impact in Q3FY17 which acted as a dampener on the overall annual volume growths. The operating margin for the India business was healthy at 24.3% before corporate allocations. Higher operating margins can be attributed mainly to gross margin expansion led by softer input costs.

 

During the year, Marico International, the International FMCG business, posted a turnover of INR 13560.000 Million, a growth of 1% over FY16 in constant currency terms. The operating margin for the year was at 16.5% (before corporate allocations) reflecting a sustained structural shift over the last few years.

 

Over the last 5 years, at a consolidated level, the top line has grown by 10% and bottom line by 18% at a Compounded Annual Growth Rate.

 

There are no material changes and commitments affecting the financial position of the Company which have occurred between the end of the FY17 and the date of this report.

 

AWARDS AND ACCOLADES    

 

CORPORATE

• Marico recognized in Forbes India’s Super 50 companies 2016

• Marico India Business received a ‘level 4 TCM Enabled Company’ by CII on its propriety Total Cost Management Maturity Model

• Marico won the Risk Management Solution Award in the Adam Smith Awards Asia 2016

• Marico Bangladesh received a Silver Award for Excellence in Corporate Governance from Institute of Chartered Secretaries of Bangladesh

• Marico won the Lakshya Gold Award for their work on “Demand Sensing Analytics” project in the annual NITIE Avartan Business fest contest

• Marico Treasury Team was awarded “The Best Treasury Team in Asia” by Corporate Treasurer

 

MANAGEMENT

• Ms. Anuradha Aggarwal, Chief Marketing Officer ranked 8th in Impact's 50 Most Influential Women 2016

• Mr. Mukesh Kripalani, Chief – Business Process Transformation and IT was honored with the Digitalist Award 2017 at Mint-SAP Digitalist Conclave

 

MARKETING

• The Exchange4Media Pitch Top 50 Brands 2016 recognized Saffola in Evergreen category and Parachute Advansed in Bottom of the Pyramid category

 

• Marico Limited won 3 awards at the Exchange 4 Media ‘Primetime” Awards - Saffola Active won a Silver for Best Integration of Brand and Movie – Ki and Ka, as did Nihar Naturals #iamcapable for Best use of Regional Entertainment channel. “Rock the spotlight” with Livon won a Bronze in the category of best use of Influencers / Celebrities

 

• Marico bags 4 awards at EMVIES 2016, 1 Gold and

2 Silver for Saffolalife and 1 Bronze for Parachute Advansed Body Lotion

 

• Parachute Advansed #KhulkeKheloHoli campaign won a Silver at APPIES 2016

 

• Black Chic Mega Black and Caivil Fusion Oil won ‘Product Of The Year’ and ‘Best Innovative brand’ award respectively at Africa Hair Awards 2016

 

• Saffolalife #protecttherheart wins Gold and Bronze from IPRCC for its PR Campaign

 

• Marico won 4 STEVIEs at International Business Awards 2016, 1 Gold and 1 Silver for Saffolalife best marketing and PR campaign. Nihar Naturals won 1 Gold and 1 bronze for best marketing and PR campaign

 

QUALITY

• Marico won 2 awards at World Quality Congress- Best end to end consumer solutions and 50 most impactful

Quality professionals

• Marico Baddi Unit wins IMC Ramkrishna Bajaj National Quality Award

 

HR

• Marico is among the 100 Best Companies for Women to work in India in a study conducted by AVTAR and Working Mother Media in 2016

• Marico is among the Top 50 India’s Best Companies to Work For in the Economic Times and Great Place to Work Institute’s India’s 2017 study

 

SUSTAINABILITY

• Marico's Baddi unit awarded CII GreenCo Gold certification

• Marico’s RandD centre located in Suburban Mumbai, (“Marks”) received the distinguished IGBC Green Building Certification for innovative and efficient use of energy and water, facility management and health standards

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

This discussion covers of the financial results and other developments for the year ended 31st March, 2017 in respect of Marico Consolidated comprising its domestic and international business. The Consolidated entity has been referred to as ‘Marico’ or ‘Group’ or ‘Company’ in this discussion. Some statements in this discussion describing projections, estimates, expectations or outlook may be forward looking. Actual results may however differ materiality from those stated on account of various factors such as changes in government regulations, tax regimes, economic developments, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints within India and the countries within which the Group conducts its business.

 

As per the Central Statistics Organisation (CSO) and International Monetary Fund (IMF), India has emerged as the fastest growing major economy in the world over the last five years, In 2017, India's GDP grew by 7.1%, a tad lower compared to 2016. The capital formulation was lower than expected. Moreover, demonetisation brought a liquidity crunch impacting demand in H2 FY17.

 

However, India’s economic fundamentals remain robust. The Forex Reserves stand at 383 billion USD up from 295 billion USD five years ago. The fiscal deficit at 3.5% of GDP is down from 3.9% five years ago. Consumer 3.8%. The country is marching towards power Sufficiency across various states while the pace of constructing roads is sustained at 100 km per day. These fundamentals auger well for India’s future.

 

India’s burgeoning young workforce is the largest and youngest in the world. Simultaneously, this vast nation is amid a massive wave of urbanisation. How India shapes its significant human potential and reimagines  its mushrooming towns and cities will largely determine its future

 

India is poised at a critical juncture. It needs massive investments to create jobs, housing, and infrastructure to meet the soaring aspirations of its people. Tidal growth that lifts all boats will be the key for a prosperous future.

 

GST will soon usher in one of the biggest regulatory reforms since independence. It is expected to improve compliance, further control inflation, improve tax revenues and create a level playing fields for compliant industry players, While it may lead to short term hiccups, over the medium term, it is expected to simplify the indirect tax administration and compliance; and probably pave way for progressive reduction in tax rates.

 

Bangladesh

Bangladesh population is estimated at more than 160 million. It is largely an ethnically homogenous society with the highest population density in the world.

 

Despite global headwinds that crimped remittances, Bangladesh’s GDP recorded robust growth of 7.1% in FY2017 on higher private investment and exports. The current account surplus expanded, and inflation slowed. Continued high growth will require a rebound in remittances and higher exports. Productive jobs are needed in manufacturing and modern services for the large number of new entrants to the labour force. Moreover, the country needs to engage its surplus farm labour and encourage female workforce participation.

 

In the long term, Bangladesh promises substantial potential in terms of socioeconomic growth. A developing economy with a young demographic profile provides the perfect consumer base on for the FMCG sector to flourish Political stability will further help the cause.

 

Vietnam

Vietnam is one of the fastest growing countries in South East Asia. Since 1990, Vietnam’s GDP per capita growth has been among the fastest in the world, averaging at 6.4% a year in the 2000s. Despite uncertainties in the global environment, Vietnam’s economy remains resilient. The country’s medium-term outlook remains favourable, while its fundamental drivers of growth – resilient domestic demand and export oriented manufacturing – remain in force. According to data issued by the Government Statistics Office (GSO), its GDP expended by 6.2% in 2016, just shy of the government’s projection of 6.3% and slightly above the IMF’s estimate of 6.1%. The business environment has improved remarkably with tax reforms and slashing of ‘red tapism’ in the country. Better business conditions are sustaining healthy FDI inflows which is an important growth driver in Vietnam’s export-oriented economy. Robust investment, surging exports and the government’s commitment to macroeconomic stability prompted credit rating agencies Fitch and Moody’s to upgrade the country’s outlook in May to BB- and B1 respectively.

 

Middle East and North Africa (MENA)

The Middle East, especially the Gulf Cooperation Council (GCC) countries, are currently affected by macro-economics, downturn and a difficult job market, primarily due to the slump in oil prices. This calls for a thorough and challenging transformation for the GCC countries to be able to achieve desirable growth. Being highly dependent on oil, GCC countries have been deeply affected by the recent oil price drop (~60% since 2013). This has brought macroeconomic instability that hinders job creation and slows down growth. The dip in oil prices has largely impacted GCC’s public finances predominantly generated by the oil sector, and has hampered Foreign Direct Investment (FDI). Only UAE has rebounded to its pre-crisis level. The slowdown impacted the job market, already riddled with a large youth unemployment rate and a population overly employed by stateowned companies. Further, a non-oil private sector that remains relatively small has limited the chances of growth and employment. GDP growth in GCC countries is forecasted at +2.3% in 2017, far from the growth experienced in the past.

 

Looking forward, GCC countries should decrease their dependence on oil through diversification. Besides, switching focus of growth from public to private sector, developing an ideal environment for SMEs and improving the banking system’s liquidity and solvency will help these economies revive.

 

South Africa

 

South Africa is the second largest economy in Africa. The country is rich in natural resources and is a leading producer of platinum, gold, chromium and iron. From 2002 to 2008, South Africa grew at an average of 4.5% year-on-year, its fastest expansion since the establishment of democracy in 1994. However, in recent years, successive governments have failed to address structural problems such as the widening gap between rich and poor; low-skilled labour force; high unemployment rate; deteriorating infrastructure; high corruption; and crime rates. Consequently, since the recession in 2008, South Africa’s growth has been sluggish and below African average. With the South African GDP declining by 0.3% in 2016 compared to 1.3% expansion in 2015, its economy continues to languish. While manufacturing recovered and retail sales posted strong growth in March 2017, economic activity remains weak and is still at risk of falling into a technical recession. Two credit rating agencies downgraded the country, which could dent private consumption and investment, and thereby dampen its economic prospects. This spells bad news at a time when a new political crisis is engulfing the embattled  President and could distract the government from economics affairs.

 

Economic growth is projected to continue to be weak in 2017 before picking up moderately in 2018. The revival of the economy will be on the back of rising private consumption and exports due to recovery in commodity prices and growth in export markets. Unemployment and inequality will remain high, reflecting large skills gaps and low education quality. Inflation has been above target, due to the rand depreciation and rising food prices, but is easing.

 

OVERVIEW OF THE CONSUMER PRODUCTS INDUSTRY

 

India’s FMCG sector at USD 41.1 billion is one of the largest sectors in India [Source: Nielsen]. Over the large five years, the sector has growth at compounded annual growth rate of 9.3%, ahead of the GDP growth. During the year under review, the growth rate has tapered off mainly due to deflation and the impact of demonstration. While sentiment appears to have improved, it has not yet translated to tangible improvement in consumption across the sector. However, there is a silver lining. The recent ‘normal monsoon’ forecast augurs well for the sector. Some other factors expected to drive the recovery are a stronger GDP growth (leading to investments in various sectors, which eventually results in employment generation); moderate consumer inflation; enabling government policy framework; continuing input cost benefits; Goods and Services Tax (GST); Direct Benefit Transfer Scheme (DBT), One Rank One Pension (OROP) for ex-Military servicemen; and increased pay-outs to government employees consequent to implementation of 7th Pay Commission recommendations.

 

Indian consumer segment is broadly segregated into urban and rural markets, and it attracts companies from across the world. The sector comprises a large middle class, relatively large affluent class and a small economically disadvantaged class, with spending anticipated to more than double by 2025.

 

OVERVIEW OF THE BEAUTY AND WELLNESS BUSINESS

 

The personal care industry makes up 22% of India’s market for consumer-packaged goods and experts agree that India is full of opportunities and is a potential gold mine for many beauty and personal care companies.

 

As per analysts, the Ayurvedic market is estimated to be at ` 4,500 crore at present (~700 million USD). Currently, the herbal products form 6-7% of the overall personal care products market; while the estimates are that it could grow to about 10% of the segment by FY20 as the trend accelerates. Consequently, various players are rebooting their business strategies and investing in new products or making new acquisitions to reap in the benefit of the herbal wave. With a CAGR of 40%, the spa industry is the subsector with the most significant growth prospects among all personal care subsectors in India.

 

THE MARICO GROWTH STORY

Marico revenues stood at INR 59860.000 Million (USD 886 million) for FY17, recording a decline of 1% over FY16. Volume growth for the year was at 4%. The value growth was lower owing to price reductions in the coconut oil portfolio in India and Bangladesh and currency devaluation in the Egypt region in H2FY17. The operating margin was at 19.5%. The business reported bottom line of INR 7990.000 Million (USD 119 million), a satisfactory growth of 12% over last year.

 

Domestic Business: Marico India

Marico India, the domestic business, achieved a turnover of INR 45790.000 Million (USD 683 million) in FY17, a decline of 2% over last year. While it recorded a volume growth for FY17 at 4%, its value growth diminished owing to price reductions in the coconut oil portfolio. The black swan event of demonetisation in Q3FY17 acted as a dampener on the overall annual volume growths due to liquidity crunch in India’s informal economy. The operating margin for the India business was healthy at 24.3% before corporate allocations. Higher operating margins can be attributed mainly to gross margin expansion led by softer input costs.

 

Value-added hair oils

Marico’s value-added hair oil brands registered a volume growth of 4% during the year, despite declining by 12% in Q3FY17 due to demonetisation. Marico continues to grow faster than the value added hair oils market of INR 65000.000 Million (USD 970 million). During the year,

 

Project Edge

The Company, during Q1FY17 launched Project EDGE, a new initiative aimed at improving the Efficiency and effectiveness of current trade and marketing spends. The savings from this project will be redeployed to fuel growth – hard working spends to accelerate growth, distribution expansion and so on. The gains started accruing from Q4FY17 and annualised gains of ~INR 350.000 Million will accrue from FY18. These will be ploughed back to further augment the sales infrastructure and fuel volume growth.

 

Bangladesh (44% of the International Business)

The Bangladesh business reported a topline Constant currency decline of 2% (volume growth of 2%) in FY17 due to price corrections of Parachute Coconut Oil on a Y-o-Y basis.

 

Parachute coconut oil declined by 5% in constant currency terms (volume decline of 1%) during the year; however, it further consolidated leadership position with 86% volume market share. With commodity prices increasing, the Company has increased the prices in the coconut oil portfolio by 10% towards the end of FY 17. This will ensure inflation-led value growth in FY18. The scope of growth in coconut oil segment is limited as the category has matured.

 

 

OUTLOOK

 

Marico India

 

As the Company enters FY18, there is a backdrop of three macro factors for the Company to consider:

 

  • Inflation in key commodities
  • GST; and
  • Monsoon

 

With this background, the Company is targeting 8-10% volume growth and healthy market share gains, backed by increased investment in core portfolio, aggressive new product launches, distribution expansion, judicious call on pricing and tighter cost management. The cost push and increased ASP investment would mean that the operating Margins, which has expanded significantly during FY17 may get corrected to 20%+ levels. In Parachute rigids, the Company aims to grow volumes in the range of 5-7% in the medium Ther. With the commodity inflation coming back.  The Company has already taken price increases in March 2017 leading to inflation-led growth from Q1FY18. Saffola is likely to continue the growth rate of circa 10% in the near term. In the medium term, the Company expects to continue growing at double-digit volume growth. In the healthy foods franchise, the Company will innovate aggressively to cater to the consumer need of tasty and healthy options and is in the process of reviving a double-digit value growth. In value-added hair oils space, the Company aims to grow this franchise at a double-digit volume growth on the back of growth in core portfolio and scaling of new launches. On the back of a continued healthy performance of gels, traction in deodorants and expected demand in Livon franchise, the youth portfolio is expected to grow at in double-digit in FY18 and at 15% in the medium term. The Company’s go-to-market strategy will be focused on improving the width and depth of its distribution – both direct and wholesale. Strategic initiatives in sales and supply chain will aim at ushering in efficiency in selling and go-to-market. The Company is focusing on digital initiatives in a big way to improve consumer engagement, drive sales through e-commerce for internet savvy consumers and build data analytics capabilities. Investment in Zed Lifestyle is likely to enhance its capability in e-commerce and salons over the medium term.

 

Marico International

Over the last 12-18 months, the Company has systematically invested in the core international markets to strengthen both the brands and the organisational capability to handle growth. With such augmented efforts to build a robust organic growth capability and a stronger organisation, the Company will selectively explore inorganic growth opportunities. The Company believes that the core markets of Bangladesh, South East Asia and MENA are ‘invest to grow’ markets. And the Company will continue to drive growth with brand restages, new product launches and capability building initiatives apart from aggressively tapping and growing new markets. It expects to clock a double-digit organic topline growth in constant currency in near to medium term. The structural shift in operating margins is expected to be sustained at around ~17%.

 

Marico Limited

The Company will aim at a volume growth of 8-10% and a topline growth of ~12-15% (depending on inflation) in the medium term. The Company will focus on fewer but bigger innovations to create growth engines of the future. Market growth initiatives in core categories and expansion into adjacent categories will be supported by investments in ASP in a band of 11-12% of sales with focus on brand building. Project Edge is aimed at making front-end spends effective. In FY18, the Company will implement this initiative in a few select international geographies. Operating margin is expected to be maintained in a band of 17-18% over the medium term. In the near term, this may mean a low profit growth However, the Company has chosen to focus. On growth over short-term profitability. Marico believes that social, environmental and economic values are interlinked and it belongs to an interdependent ecosystem comprising shareholders, consumers, associates, employees, government, environment and society. Marico’s stated purpose is to ‘make a difference, by ensuring a positive impact on all the stakeholders. The Company staunchly believes a firm has to work closely with its   ecosystem to create a sustainable and inclusive growth for all. Thus, Marico has focused approach in identifying sustainability goals in line with its business strategy and purpose. Its social responsibility (CSR) initiatives are an integral part of Marico’s sustainability goals in and it is committed to making a sustainable impact on the society.

 

 

INDEX OF CHARGES:

 

SNo

SRN

Charge Id

Charge Holder Name

Date of Creation

Date of Modification

Date of Satisfaction

Amount

Address

1

A99405300

10020050

STATE BANK OF INDIA

31/08/2006

02/11/2010

-

2930000000.0

CORPORATE ACCOUNTS GROUP BRANCHNEVILLE HOUSE, J. N. HEREDIA MARG, BALLARD ESTATEMUMBAIMH400001IN

2

G37803244

10294992

HSBC Bank (Mauritius) Limited

30/06/2011

25/08/2015

20/02/2017

2466990000.0

HSBC Centre18, CybercityEbeneNA000000MU

3

B63107775

10075251

Standard Chartered Bank

23/11/2007

-

27/11/2012

600000000.0

90, M G Road,Fort,MumbaiMH400001IN

4

B13398292

10172797

Axis Trustee Services Limited

06/08/2009

-

27/05/2011

300000000.0

MAKER TOWERS 'F', 13TH FLOORCUFFE PARADE, COLABAMUMBAIMH400005IN

5

A57053860

10124519

State Bank of India

17/09/2008

-

24/02/2009

1000000000.0

Corporate Accounts Group Central,3rd Floor,State Bank Bhavan,MumbaiMH400021IN

6

A13796636

80016324

CITIBANK NA

30/05/1996

-

10/04/2007

29000000.0

SAKHAR BHAVAN7TH FLOOR NARIMAN POINTMUMBAIMH400021IN

7

A06900336

80016323

ANZ GRINDLAYS BANK

07/08/1996

-

08/11/2006

115000000.0

90 MAHATMA GANDHI ROADPOST BOX 141MUMBAIMH400001IN

8

A05228689

80012449

STATE BANK OF SAURASHTRA

18/04/1990

15/03/1996

27/09/2006

110000000.0

FORTMUMBAIMH400001IN

9

A05227558

80012451

SATE BANK OF SAURASHTRA

18/04/1990

27/03/1991

27/09/2006

5000000.0

FORTMUMBAIMH400001IN

10

A05228226

80012452

STATE BANK OF SAURASHTRA

15/03/1996

-

27/09/2006

18000000.0

FORTMUMBAIMH400001IN

 

 

 

 

 

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31ST DECEMBER 2017

 

        

 

 

Particulars

quarter ended

quarter ended

Nine months ended

 

 

 

31.12.2017

30.09.2017

31.12.2017

1

 

Income from Operations

 

 

 

 

 

Sales/Income from Operations (Gross)

13375.900

12462.800

39675.600

 

 

b) Other Operating Income

718.900

322.100

1255.600

 

Total Income from Operations (Net)

14094.800

12784.900

40931.200

2

Expenses

 

 

 

 

a)

Cost of Materials consumed

7941.100

6825.300

21683.700

 

b)

Purchase of Stock-in-trade

203.700

120.600

491.500

 

c)

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

(668.000)

(11.400)

(242.100)

 

d)

Excise Duty

--

--

109.100

 

e)

Employee benefit expenses

651.000

708.300

2089.400

 

f)

Finance Costs

18.600

18.700

57.200

 

g)

Depreciation and amortization expense

162.600

179.300

497.000

 

h)

Other expenses:

 

 

 

 

 

Advertisement and Sales Promotion

1039.700

1237.300

3514.200

 

 

Others

1682.700

1610.700

5015.000

 

Total Expenses

11031.400

10688.800

33215.000

 

 

 

 

 

 

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

3063.400

2096.100

7716.200

 

Exceptional Items

--

--

--

 

Profit /(Loss) from ordinary activities before tax

3063.400

2096.100

7716.200

 

Tax Expense:

 

 

--

 

Current Tax

682.800

454.300

1700.100

 

Deferred Tax

(20.500)

38.700

31.700

 

Net Profit /(Loss) from ordinary activities after tax

2401.100

1603.100

5984.400

 

Other Comprehensive Income:

 

 

 

 

Other Comprehensive Income:

 

 

 

 

A. Items that will not be reclassified to profit or loss

 

 

 

 

-       Remeasurement of post-employment benefit obligation

(3.900)

2.600

(11.800)

 

-       Income tax relating to items that will be reclassified to profit or loss

1.400

(0.900)

4.100

 

B. Items that will be reclassified to profit or loss

 

 

 

 

-       Change in fair value of hedging instruments

2.600

(14.800)

(19.400)

 

-       Income tax relating to items that will be reclassified to profit or loss

(0.900)

5.100

6.700

 

Other Comprehensive Income for the year, net of taxes

(0.800)

(8.000)

(20.400)

 

Total Comprehensive Income for the period

2400.300

1595.100

5964.000

 

 

 

 

 

 

Paid up equity share capital (Eq. shares of  INR 10/- each)

1290.800

1290.800

1290.800

 

Reserve excluding revaluation reserves

 

 

 

 

 

Earnings per share (before/after extraordinary items) of  Rs.10/- each

 

 

 

 

 

Basic & Diluted

1.86

1.25

4.65

 

 

 

 

 

 

 

Note:

 

1. The Standalone un-audited financial results for the quarter and nine months ended December 31, 2017 were reviewed by the audit committee and approved by the Board of Directors of Marico Limited ("the Company") at Its meeting held on February 9, 2018.


2. This statement has been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (Ind AS) prescribed under Section 133 of the Companies Act, 2013 and other recognised accounting practices and policies to the extent applicable.


3. During the quarter and nine months ended December 31, 2017, the Company has received dividend of INR 546.000 Million and INR 658.600 Million, respectively, from its subsidiary Marico Bangladesh Limited (for the quarter and nine months ended December 31, 2016, the company had received dividend of INR 1349.700 Million and INR 1713.900 Million, respectively from its subsidiaries Marico Bangladesh Limited and Marico South East Asia Corporation).

4. During the nine months ended December 31, 2017 - 300,000 equity shares of Re. 1/- each fully paid up were allotted upon exercise of the vested stock option pursuant to Marico Employee Stock Option Scheme, 2014. Following are the particulars of Employee Stock Option plan under various schemes: (For Table, kindly refer Corporate Announcements on www.bseindia.com.)


5. During the previous year ended March 31, 2017, the Company had acquired 35.43% stake in Zed Lifestyle Private Limited, a joint venture. During the quarter ended June 30, 2017 the Company acquired additional stake of 2.69%. Further during the quarter ended December 31, 2017 the Company acquired additional stake of 2.48% in the Joint Venture.


6. Additional equity infusion was done in Marico South Africa Consumer Care (Pty) Limited to the tune of ZAR 30 Million (INR.144.700 Million approx.) during the quarter ended September 30, 2017.


7. In accordance with the Indian Accounting Standards (Ind AS 108), the Company has disclosed segment results in consolidated financial results.


8. The Board of Directors of Marico Limited declared interim dividend of 250% (INR 2.50 per share) at its meeting held on February 9, 2018, Interim dividend would be paid to those shareholders, whose names appear in the Register of Members as on February 20, 2018.

 

9. Previous periods figures have been regrouped / reclassified to make them comparable with those of current period.

 

 

CONTINGENT LIABILITIES:

(INR in million)

PARTICULARS

31.03.2017

31.03.2016

Disputed tax demands / claims :

 

 

Sales tax

222.600

225.800

Income tax

598.900

471.400

Customs duty

3.100

3.100

Agricultural produce marketing cess

--

96.900

Employees state insurance corporation

1.800

1.800

Excise duty on subcontractors

5.400

5.400

Service Tax

1.700

1.700

Excise duty on CNO dispatches

--

6855.000

Excise duty on By-Product

46.800

46.700

Excise duty on Oats

202.300

--

Claims against the Company not acknowledged as debts

0.800

0.800

Guarantees excluding financial guarantees:

 

 

Corporate guarantees given to banks on behalf of Broadcast Audience Research Council (BARC)

6.000

6.000

Stand by Letter of Credit (SBLC) issued by the Company's banks on behalf of subsidiaries for credit and other facilities granted by banks. (Credit and other facilities availed by the subsidiaries as at the year end - INR 1209.000 Million (INR 1199.500 Million) These SBLC are given for working capital requirement and are generally renewed every year.

1368.300

1397.800

Letter of credit

 

 

It is not practicable for the Company to estimate the timing of cash outflows, if any, in respect of the above contingent liabilities pending resolution of the respective proceedings.

 

Note:

 

This contingent liability pertained to a possible obligation in respect of pure coconut oil packs up to 200 ml. This claim had been contested by the excise department. Based on the various judicial pronouncements, management believed that the probability of success in the matter was more likely than not and accordingly, the possible excise obligation was treated as a contingent liability in accordance with requirements of Indian Accounting Standard (Ind AS) 37 “Provisions, Contingent Liabilities and Contingent Assets”. The possible obligation of INR 5637.300 Million as at 31st March, 2016 (INR. 4438.500 Million as at April 1, 2015) for the clearances made after June 3, 2009 (i.e. the date of issue of Board circular) till March 31, 2016 and INR 1217.700 Million as at March 31, 2016 (INR 1217.700 Million as at April 1, 2015) for clearances made prior to June 3, 2009 was disclosed as contingent liability to the extent of the time horizon covered by show cause notices issued by the excise department within the normal period of one year (from the date of clearance) as per the excise laws.

 

The aforementioned amount has not been considered under contingent liability as on 31st March 2017 as the matter has now been settled by orders of different adjudication authorities in the current financial year holding that clearance of pure coconut oil packs up to 200ml merits classification under chapter 15 and not under chapter 33 as contemplated by the excise department and accordingly the excise department has also withdrawn its circular dated June 3, 2009 .

 

Consequently pending show cause notices issued by the excise authorities will not survive and therefore the contingent liability has been deleted from current financial year.

 

 

FIXED ASSETS

 

  • Freehold Land
  • Leasehold Land
  • Building
  • Plant and Equipment
  • Furniture and Fixtures
  • Vehicles
  • Office Equipment
  • Leasehold Improvement

 

 

 

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 records 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

INR

US Dollar

1

INR 65.04

UK Pound

1

INR 92.28

Euro

1

INR 80.62

 

 

INFORMATION DETAILS

 

Information Gathered by :

PRT

 

 

Analysis Done by :

PRY

 

 

Report Prepared by :

SUJ

 

SCORE FACTORS

 

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

 

RATING EXPLANATIONS

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

 

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 are as follows:

 

·         Financial condition covering various ratios

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

 

 

 

 

 

 

 

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.