Consolidated Our Foundations for a Sustainable Future
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Annual Report 2015 ENHANCEMENT We have set the stage for our augmentation fostered by our passion and drive to soar high in all aspects of the business spectrum. WELCOME TO MARICO BANGLADESH LIMITED We are one of the leading FMCG companies in the beauty and wellness space of Bangladesh. Committed to making a difference in all we do, we touch the lives of 1 out of every 2 Bangladeshis through our wide array of brands. Useful Link Find more information online: marico.com/Bangladesh Explore our History Download our Annual Report Get to know our Brands OVERVIEW Corporate Information..........................................................................................................4 Profile of the Company..................................................................................................5 Values.........................................................................................................................................................9 History & Milestone...................................................................................................10 Financial Highlights................................................................................................12 At a Glance.......................................................................................................................14 Board of Directors' Profile...............................................................16 Our Leaders..........................................................................................................20 FY2014-15 IN REVIEW Chairman's Letter to Shareholders..................25 Management Discussion & Analysis...............27 Our Share.........................................................................................................36 Value Added Statement.....................................................39 Vertical Analysis of Financials.............................40 GLIMPSE INTO MARICO Corporate Culture....................................................................42 Corporate Social Responsibility....................45 Winning through Consumers...............................47 Sustainable Development.........................................49 GOVERNANCE Corporate Governance Report.................................51 Annexure to Corporate Governance Report.............................................................54 Audit Committee Report.............................................55 Directors' Report........................................................................58 Annexure to Directors' Report..........................61 AUDITED FINANCIAL STATEMENTS Auditor’s Report............................................................................73 Statement of Financial Position.......................74 Statement of Comprehensive Income................................................................................................................75 Statement of Changes in Equity.......................76 Statement of Cash Flows................................................77 Notes to the Financial Statements.................78 GENERAL SHAREHOLDER INFORMATION General Shareholder Information......................104 15th AGM Notice........................................................................................105 Attendance Slip & Proxy Form.......................................107 TABLE OF CONTENTS audIted FInancIal GeneRal shaReholdeR OvERvIEw Fy 2014-15 In RevIew GlImpse Into maRIco GoveRnance statements InFoRmatIon CORPORATE INFORMATION BOARD OF DIRECTORS OUR FACTORIES Mr. Saugata Gupta Chairman Factory 1: Ms. Rokia Afzal Rahman Independent Director Mouchak, Kaliakoir, Gazipur Mr. Masud Khan Independent Director Factory 2: Shirirchala, Mahona Bhabanipur, Gazipur Mr. Aditya Shome Managing Director Mr. B. Sridhar Director Mr. Vivek Karve Director AUDITORS Mr. Rohit Jaiswal Director A. Qasem & Co., Chartered Accountants AUDIT COMMITTEE LEGAL ADVISORS Mr. Masud Khan Chairman Dr. Kamal Hossain & Associates Mr. B. Sridhar Member Corporate Counsel Mr. Vivek Karve Member Mr. Aditya Shome Member PRINCIPAL BANKERS Standard Chartered Bank MANAGEMENT TEAM HSBC Mr. Aditya Shome Managing Director Citibank N.A BRAC Bank Ltd. Mr. Iqbal Chowdhury Director-Finance Islami Bank Bangladesh Ltd. Mr. Sidhartha Das Director-HR Mr. Md. Nazim Uddin Head-Supply Chain Mr. Md. Saiful Alam Head-Manufacturing STOCK INFORMATION Mr. Aditya Singh Director-Marketing Dhaka Stock Exchange Chittagong Stock Exchange Stock Code: MARICO COMPANY SECRETARY ISIN: BD0481MRICO6 Mr. Monzurul Alam Sector: Pharmaceuticals & Chemicals REGISTERED & CORPORATE OFFICE INVESTOR RELATIONS House-1, Road-1, Sector-1, Uttara, Dhaka-1230. Tel: +880 28931202 Ext: 135 Fax: +880 28932322 Tel: +880 28931202 Email: [email protected] Fax: +880 28932322 DATE OF INCORPORATION WEBSITE September 6, 1999 www.marico.com/bangladesh Marico Bangladesh Limited 4 Annual Report 2015 audIted FInancIal GeneRal shaReholdeR OvERvIEw Fy 2014-15 In RevIew GlImpse Into maRIco GoveRnance statements InFoRmatIon COMPANy PROFILE Snapshot From hair nourishment to skin care, we are deeply passionate about our growing family of brands and the markets we are in. This, in turn, advances our agenda of delivering consistent above-market results for our shareholders. A WINNING LEGACY We are a subsidiary of a leading Indian consumer products company, Marico Limited. Founded in 1990 by the incumbent Group Chairman Harsh Mariwala, Marico has expanded its footprint across 25 emerging markets in Asia and Africa while serving consumers’ evolving beauty and wellness needs. Bangladesh India Vietnam Middle East Egypt South Africa Malaysia A “Glocal” Organization We leverage our strong experience in global markets to build local capabilities and provide tailored brand experience for our consumer base in Bangladesh. Such “glocal” strategy adds impetus to our objective of building market leadership position in different product categories. Quick Facts We proudly serve 1 out of every 2 Bangladeshis Our flagship brand Parachute is through our winning among the top 10 most trusted brands. brands in Bangladesh. Marico Bangladesh Limited Annual Report 2015 5 audIted FInancIal GeneRal shaReholdeRs OvERvIEw Fy 2014-15 In RevIew GlImpse Into maRIco GoveRnance statements InFoRmatIon HUMAN RESOURCES Indirect Employment: Direct Employment: 2600 people are 157 MBL Members employed in the form of distributors, salesmen and local suppliers. New Brands Parachute Advansed Parachute Advansed Extra Care Body Lotion 2 Launched: PRODUCT 14Brands 45SKUs PORTFOLIO FINANCIAL Fixed Deposits, Shareholders' RESOURCES Cash & Cash Fund: equivalents: BDT BDT 1,712 million. 692 million. 21% 11% 232 BDT (Crores) CAGR* in our Net Profit since CAGR* in our Turnover since Contribution to our Listing our Listing in DSE & CSE in 2009 National Exchequer *CAGR is calculated for the period between October 1, 2009 to March 31, 2015 Marico Bangladesh Limited 6 Annual Report 2015 audIted FInancIal GeneRal shaReholdeR OvERvIEw Fy 2014-15 In RevIew GlImpse Into maRIco GoveRnance statements InFoRmatIon Our Vision Transform in a sustainable manner, the lives of all those we touch, by nurturing and empowering them to maximize their true potential. Being a company of immense promise and possibilities, we are guided by an underlying dedication to help our stakeholders realize their true potential. This shared vision gives us a unified sense of purpose and destination, and makes us committed to being the best in everything we do. Our Mission Make a difference. Our sustainable growth story rests on an empowering work culture that encourages our members to take complete ownership and make a difference to the entire business ecosystem. Strategic Objectives: Staying true to our promise of growth and transformation, we have embraced the Group-wide strategic roadmap “Winnovation 2018” which envisages building a winning organization on the foundation of innovation and market leadership. For us, Marico Bangladesh Ltd., the newly conceived strategic direction will be manifested through the following objectives: Build on past successes and learnings Go towards leadership position in product categories Create best-in-class workplace for members Derive benefit from the synergies of Marico Group Win through innovation with consumers “Winnovation 2018” is underpinned by five cross-cutting pillars on which we will focus in order to galvanize momentum towards delivering on our strategic objectives: Strategic Pillars GTM Strategy Innovation IT Talent Value Proposition Value Management Marico Bangladesh Limited Annual Report 2015 7 audIted FInancIal GeneRal shaReholdeR OvERvIEw Fy 2014-15 In RevIew GlImpse Into maRIco GoveRnance statements InFoRmatIon Marico Bangladesh’s Business: PROFIT PROCURE PRODUCTS DISTRIBUTE CONSUMERS DISTRIBUTION Locally Manufactured Our Strength Consumers are Taxes to Govt. & + in Distribution at the Centre Globally Imported ensures that of everything Dividends to we reach all we do. They Shareholders across are our Bangladesh partners in Benefits to creating and employees delivering Retention for solutions reinvestment Our Brands CATEGORY BRANDS Branded Coconut Oil (PCNO) Parachute Parachute Advansed Beliphool Nihar Naturals Shanti Badam Amla Value Added Hair Oil (VAHO) Parachute Advansed Extra Care Enriched Coconut Hair Oil Parachute Advansed Enriched Hair Oil Parachute Advansed Cooling Hair Oil HairCode Hair Dye HairCode Active HairCode Keshkala Hair Serum Livon Silky Potion