Updates (Company Update)

Merck Limited
Project Organic
Final report
Strictly private and confidential
July 2016
Table of content
1
Glossary
Notice to reader
Limitations
Background and objective
Work done
Executive summary
Detailed observations
Annexures
Final report
Glossary
Abbreviation
Expansion/Description
Entities banned vide SEBI order dated 22 March 2016 which includes: M/s Satyam Brush
Industries, Mr. Prashant Karkera, Ms. Indira Karkera, Mr.Shrikant Bhalakia, Mr.Sadashiv
Accused
Poojary, Mr.Raju Landge, Mr.Suresh Unawane, Mr.Narayan Devadiga, Mr. Anil Jathan,
entities/individuals
Mr. Nagesh Karkera, Mr. Mohit Karkera, Mr. Swapnil Sutar, Mr. Krishna M Ghosh, Mr.
Sukhdev S Bhosale, Ms. Jayshree Shah, Mr. Anand S Bhalakia, Mr. Balaram Mukherjee,
Ms.Bhavani Jathan, Mr. Govind Raj Rao, Mrs. Bhagyalaxrni Rao, Mr Narayan Devadiga
DD
Demand Draft
DIVIDEND
Dividend file shared by Sharepro
EC
Electronic Clearing
EL
Engagement Letter
EMTRAN
Transaction file containing share transfers during the review period
FIR
First Information Report
IEPF
Investor Education and Protection Fund
INR
Indian Rupee
Merck or the Company Merck Limited
Document set containing share transfer application, share transfer form, KYC
Physical documents
documents, FIR, affidavit, income proof of surety and so on
RTA
Registrar and Transfer Agent
SEBI
Securities and Exchange Board of India
SEBI order
Interim order issued by SEBI on 22 March 2016 against Sharepro
Sharepro
Sharepro Services India Private Limited
TF
Category in DIVIDEND file which denotes transfer to IEPF
WR
Dividend warrant
[2016] KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved
Final report
Notice to reader
This report has been prepared solely for the purpose set out in our Engagement Letter (EL)
dated 6 April 2016 and the general terms of business attached with it, and is not, without our
prior written consent, to be used for any purpose other than as stipulated under the said EL.
Accordingly, KPMG accepts no responsibility and disclaims liability in any manner
whatsoever, for the use of this report for any purpose other than that for which it has been
prepared.
This report shall be disclosed to those authorized in entirety only without removing this
section Notice to reader of the report.
This report is based on information and explanations provided to us by Sharepro Services
India Private Limited (Sharepro) and Merck Limited (Merck or the Company, pursuant to
our request. Although, where appropriate, supporting information has been sought, we have
not independently verified the sources of information unless stated otherwise in the report.
We reserve the right to amend any findings, if deemed necessary by us, should any further
information become available to us post submission of this report. Neither KPMG, nor any of
its partners, directors or employees, undertake responsibility in any way whatsoever to any
person in respect of errors in this report, arising from incorrect information provided by the
Companys staff.
Our findings are based on the procedures carried out during the engagement. Had additional
procedures been performed, our findings may have been different.
Final report
Notice to reader
In connection with the report or any part thereof, KPMG does not owe duty of care (whether in
contract or in tort or under statute or otherwise) to any person or party or entity, other than the
addressee of the report, to whom the report is circulated and KPMG shall not be liable to any
such person or party or entity who uses or relies on this report. KPMG thus disclaims all
responsibility or liability for any costs, damages, losses, liabilities, expenses incurred by such
third party arising out of or in connection with the report or any part thereof.
This report is confidential and is not to be copied, disclosed, circulated or referred to in whole or
in part to any other third party other than to whom it has been issued by KPMG, without our prior
written consent and you are hereby requested to preserve this document and not disclose or
reveal the same, to any third party. KPMG does not assume any responsibility and disclaims any
liability, however occasioned to you or any other party, as a result of the circulation, publication
or reproduction of this report, contrary to the provisions of this paragraph.
KPMG has not performed an audit and do not express an opinion or any other form of assurance.
Further, comments in our report are not intended, nor should they be interpreted to be legal
advice or opinion. KPMG does not make any form of representation regarding the sufficiency of
procedures that we have performed.
The scope of work performed by us under this engagement was as considered necessary at the
given point in time. This report is based on information and evidence obtained as a result of
work completed till 18 July 2016.
By reading the report, the reader of the report shall be deemed to have accepted the terms
mentioned hereinabove.
Final report
Limitations
The outcome of our work and our findings reported herein, are the result of work procedures
performed on the data provided to us by Sharepro and Merck till 18 July 2016.
We have relied on the information and data obtained for the period 01 April 2006 to 31 March
2016 (review period) from the management of Sharepro and Merck. We have independently
neither investigated nor verified such information and assume no responsibility for the accuracy
and completeness of the information and data provided to us.
We could not obtain certain information for our review from Sharepro. The details of such
information are as under:
Dividend payment advice details for the years 2007 (paid in March 2007 and April 2007),
2009 (paid in April 2009) and 2010 (paid in October 2010).
Investor complaints received by Sharepro on behalf of the company for the years 2006-2011
Correspondence for DDs against either cancelled warrants or expired DDs.
Additional information/data that had been requested and was not made available on the date
of this report. (refer Annexure I for these details)
In respect of clarification sought by us, we have relied on the explanation provided to us by

Sharepro and/or Merck.
While conducting document review we had attempted to identify cases of forgery and fake
documentation to the extent possible. However, given the fact that there were certain
documents which could not be verified on any of the Government website as they were related
to the period details of which were either not available on the said websites or the copy of
documents were not made available to us by Sharepro. Details of the same are mentioned in
Annexure-II
Final report
Background and objective

Merck is a public limited company listed on the Bombay and National Stock Exchange in
India and had Sharepro as their Registrar and Transfer Agent (RTA) for the review period
1 April 2006 to 31 March 2016.
Sharepro has been under review for alleged siphoning off of dividends and shares from
rightful investors for the companies it is servicing. Securities and Exchange Board of
India (SEBI), had passed an interim order dated 22 March 2016 against Sharepro inter
alia restraining Sharepro and entities/individuals linked with the management of
Sharepro from buying, selling or dealing in the securities market or associating
themselves with securities market, either directly or indirectly.
Companies who had Sharepro as their RTA agent had been directed by SEBI to conduct a
thorough review of their records with Sharepro with respect to dividends paid and
transfer of securities to determine whether dividends had been paid to actual/beneficial
share holders and whether securities had been transferred as per the provisions of law.
Merck engaged KPMG to conduct a diagnostic review of its records with Sharepro as
directed by SEBI. The objective of this engagement was to ascertain:
whether shares of Merck had been fraudulently transferred to a person/entity who

was not the rightful owner of the share/s; and
whether dividends distributed by Merck had been paid to the rightful owners of the
shares.
Final report
Work performed
Work Area
Work performed
Process
understanding
Held discussions with Sharepro and/or Merck to obtain an understanding of the below processes:
Transfer/ Transmission of shares

Re-print of duplicate share certificates for purportedly issuing to shareholders
Change in address of shareholders
Change in bank account details of shareholders
Dividend payments to shareholders
Re-issue of dividend warrants to shareholders
Data Analytics
and review
Based on the data provided for the review period by Merck and Sharepro, we reviewed the data and
executed several data analytics routines to identify potential red flags and inconsistent patterns, if any.
Underlying
document review
After reviewing the data and undertaking data analytic routines, we selected below sample transactions for
a detailed review:
Transfer of shares 393
Transmission of shares 6
Investor complaints 15
Re-print of duplicate share certificates 113
Transaction on holidays 29
Rectification entries 26
Deletion entry 270
Change in shareholders address - 2
For these selected samples, we reviewed the following:
Attempted to verify the authenticity of the documentation to the extent possible.
Whether the process as explained during the process understanding to us was adequately followed or
not.
Reviewed supporting documents for the transactions and obtained clarification for any anomalies
identified by us from the management of Sharepro and/or Merck as required.
Highlighted potential cases where we were unable to check the veracity of the documents due to nonavailability of information to verify the said cases.
Final report
Executive Summary
Final report
Executive Summary (1/3)

A. Data Analytic Routine
The below mentioned data analytic routines were undertaken by us on the data made available to us. The
issues observed are mentioned in the detailed observations section of the report:
Routine
no.
Description
Issues
noted
Same bank account number and same bank name for different folio numbers
Yes
Same shareholder(identified basis same Folio) with multiple bank account numbers
Yes
Dividend claimed summary where we identified dividend claims in any given year by
respective shareholders from unclaimed dividend for 4 or more years.
Yes
Rightful shareholders as per SEBI order in DIVIDEND file
Yes
Key word search for accused entities/individuals
Yes
Comparison of DIVIDEND file and bank payment advice
No
Same folio different shareholder name in DIVIDEND file
No
Shareholder name contains Karkera
No
Shareholder name contains Bhalakia
No
10
Payouts to accused entities/individuals bank account numbers mentioned in SEBI order
No
11
12
Irregularities in claims for same shareholder to identify cases where shareholder had no
dividend claims in initial years of our review period but had claims after three years
Duplicate line items in DIVIDEND file based on folio number, shareholder name, quantity of
shares, dividend amount and warrant/DD number.
No
No
13
Paid date of dividend is before the Issue date of dividend in DIVIDEND file
No
14
Comparison of dividend amount transferred to IEPF from the DIVIDEND file (category TF)
received from Sharepro with the payments advice towards payment to IEPF.
No
15
Identify folios from the EMTRAN file with missing signature verification records
No
16
Check complaints register for the names of rightful shareholders identified in SEBI order.
No
10
Final report

Routine
no.
Description
Issues
noted
17
Transfer of Shares (EMTRAN) under multiple scenarios as under:

a. Transfer from A to B and subsequent demat by B within one month
b. Transfer from A to B, B to C and subsequent demat by C within one month
c. Transfer from A to B and C to B and subsequent demat by B within one month
d. Transfer from A to B and subsequent receipt of dividend by B within 4 months
e. Transfer from A to B, B to C and subsequent receipt of dividend by C within 4 months
f. Transfer from A to B and C to B and subsequent receipt of dividend by B within 4 months
No
11
Final report

B. Share Transactions Review
During the review of the share transaction data/documents, the below were observed by
us. The details of the same are mentioned in Annexure - III
In case of transfers, we observed that application for share transfer (39 folios) and
appropriate set of KYC documents (20 folios) were missing.
In cases of issue of duplicate share certificates, supporting documents such as copy of

FIR (15 folios), affidavit (1 folio) and income proof of surety (7 folios) were missing.
In cases of deletion of name, proof of transfer (1 folios) was missing.
We were given to understand that shares are rematerialized by passing rectification

entry. We identified 3 such cases in our sample where shares were rematerialized by
passing rectification entries and there were no physical documents available to verify
the same. We further observed 1 folio where neither physical documents nor any
details were available in Sharepros back office system. However, rectification entry
was passed by them.
Executive Summary is not exhaustive and is to be read in conjunction with the detailed report.
12
- Data analytic routines
Final report
Detailed observations - Data analytic routines

Based on the understanding of the data and processes followed both at Sharepro and Merck, and the
allegations against Sharepro mentioned in the interim order of SEBI dated 22 March 2016, we conducted
multiple data analytic routines on the data provided to us by Sharepro and Merck. The primary objective of
undertaking these data analytic routines on the data was to identify potential red flags and anomalies, if any
for undertaking investigation thereon.
Routine 1: Same bank account number and same bank name for different folio numbers
Results of data analytic routine
Hit
count
855
Number of
shares
6,513,563
Sample reviewed by us
Dividend amount
(in INR)
Sample
Count
238,321,340
117
Sample - number
of shares
Sample - dividend
amount (in INR)
6,356,096
230,296,309
Data source
DIVIDEND file
We selected cases forming part of our sample based on the dividend amount greater than INR 40,000. We
noted following observations for the sample selected and reviewed by us:
SN
Description
Name of shareholder against one folio was not similar to the name against other folio(s).
We have requested KYC documents from Sharepro for validating bank account details. But
these documents were not made available to us on the date of this report. (refer Annexure
IV)
Total
Number of
instances
Amount of
dividend (in INR)
301,421
301,421
14
Final report

Routine 2: Same shareholder (identified basis same folio) with multiple bank account numbers
This routine was undertaken in the file shared by Sharepro named DIVIDEND file. We had further analysed
this routine on DIVIDEND file by selecting a sample of 1,398 counts covering 76% of shares and 81% of
dividend amount.
Results of data analytic routine
Hit
count
6,476
Sample reviewed by us
No. of shares
Dividend amount
(in INR)
Sample
Count
Sample - number
of shares
1,892,372
226,969,963
1,398
1,443,139
Sample - Dividend
amount (in INR)
Data source
183,966,334
DIVIDEND file
We selected cases forming part of our sample based on the dividend amount greater than INR 25,000. We
noted following observations for the sample selected and reviewed by us:
SN
Description
Instances where dividend was paid to one account for consecutive years and no dividend
was paid post the year in which bank account number was changed.
2
3
Total
No of
instances
Dividend amount
(in INR)
10
404,850
Instances where dividend was paid to three different bank accounts during the review
period.
282,337
Instances where dividend was not claimed for one year and a considerable amount was
paid post the year in which the bank account number was changed.
82,045
16
769,232
We had requested for the KYC documents for above 16 cases to verify and validate the bank account details
of the shareholders from Sharepro. However this data was not made available to us on the date of this
report. (refer Annexure V)
15
Final report

Routine 3: Dividend claimed summary where we identified dividend claims in any given year by respective
shareholders from unclaimed dividend for 4 or more years.
This routine was conducted on the DIVIDEND file shared by Sharepro. We noted 83 cases where there was a
significant time gap between the year of declaration of dividend and the year in which it was claimed. The
observations are as under:
Hit count
67,610
Number of
shares
23,404,769
Dividend amount (in

INR)
1,535,960,145
Sample
Count
Data source
83
DIVIDEND file
We have categorized the total 83 cases into two categories as mentioned below:
Number of
instances
SN
Description
Category I - The amounts for unclaimed dividend for 4 or more previous years was claimed in one
year and there was no dividend claimed prior to or after the year in which it was claimed in lump
sum
34
Category II - The amounts for unclaimed dividend for 4 or more previous years were claimed in
multiple years and there was significant time gap between dividend claimed in one year with that
to the subsequent year.
49
Total
83
We had requested for underlying documents from Sharepro for all such individual cases to further investigate
and substantiate whether the payments had gone to the legitimate entity/individual in the year in which the
dividend was claimed. However, the required documents were not made available to us till the date of this
report. (refer Annexure VI)
16
Final report

Routine 4: Identified rightful shareholders as per SEBI order in DIVIDEND file
This routine was conducted on the DIVIDEND file shared by Sharepro in which we identified transactions
where names of the shareholders mentioned as rightful shareholders in SEBI order were also shareholders
for Merck.
Folio count
Sample
Count
No. of shares
8
Amount of dividend (in INR)

1164
76,758
Data source
DIVIDEND file
We noted 8 folios of such rightful shareholders and individually evaluated their case in detail. Following are
the details of these cases:
SN
Total
Folio Number
Shareholder name
IN30014210249265
Rachit Investments Limited
IN30018310114200
Kewal Krishna Thakar
IN30044110192281
Amount of dividend
(in INR)
Number of shares
43
430
235
43,358
Sankar Kumar Saha
30
525
IN30045010009204
Kewal Krishna Thakar
50
9,225
IN30047640335912
Rita Sapru
50
9,225
IN30047640335912
Rita Sapru
416
8,810
IN30051310000560
S S Kantilal Ishwar. Sec
220
3,145
IN30102220133516
Avutu Sambi Reddy
120
2,040
1,164
76,758
17
Final report

Routine 5: Key word search for accused entities/individuals
This routine was conducted on the DIVIDEND file shared by Sharepro in which we conducted key word
search on the names of the shareholders in order to match the names with accused entities/individuals
mentioned in SEBI order.
Sample
Count
Hit counts
96
No. of shares
96
Dividend amount (in INR)

50
168,884
Data source
DIVIDEND file
We noted one shareholder named Dina Shrikant Bhalakia sharing same address as Shrikant Bhalakia,
identified as accused individual in SEBI order. The details of shareholding of Dina Shrikant Bhalakia is given
below:
SN
Description
Number of
instances
Dina Shrikant Bhalakia was holding 71 shares of Merck in 2005 and from 2006 onwards she was
holding 50 shares of Merck in demat form as on 31 March 2015. She had claimed dividend
amounting to INR 10,225 during the review period.
18
- Share transactions
Final report
Detailed observations Share transactions

We have been provided an excel file named EMTRAN and we were given to understand that this file
contains the list of share transactions that took place during the period 01 April 2006 to 31 March 2016.
Based on the materiality we selected sample transactions from EMTRAN file for a detailed review. The
observations on the review of underlying documents for these selected sample transactions are given
below. The details for the same are mentioned in Annexure III.
Total no. of
transactions
SN Category
Sample
transactions for
review
Samples
reviewed
Detailed observations with reference to the transaction
1 Transfer
2,164
393
393
Complaint
register
15
15
14
Duplicate
3 Share
certificate
656
113
113
Transaction
on holiday
29
29
NA
There were 222 transactions for 39 folios where share transfer

application request was not available.
There were 118 transactions for 20 folios where proper KYC
documents were not available.
The documents related to a complaint for non-receipt of dividend by
Hari Kishan Lal Bhatia dated 02 February 2012 were not available for
our review. However, we noted from the DIVIDEND file shareholder
named Hari Krishan Lal Bhatia was paid dividend of INR 14,063 for
the period 2006 to 2011 (prior to complaint date) and INR 1,275 for
the period 2012 to 2015 (post complaint date)
There were 42 transactions for 7 folios where income proof of surety
was not available.
There were 2 transactions for 1 folio where affidavit was not
available.
There were 72 transactions for 15 folios where FIR copy was not
available.
It was observed that all the transactions which took place on holiday
were entries for dematerialization of shares.
We were given to understand that due to work pressure they were
authorized to work on Sundays, hence, these transactions had taken
place on holidays.
20
Final report

SN
Category
Total no. of
transactions
Sample
transactions for
review
Samples
reviewed
Rectification
6 Deletion
26
26
24
2,622
270
270
We were provided with the physical documents only for 3

transactions for 1 folio. We were able to verify the data
available on Sharepros system for 21 transactions for 7
folios. However, we were not provided with the physical
documents for these 21 transactions. There were 2
transactions for 1 folio for which neither physical documents
were available nor was the transaction available in
Sharepros back office system.
We were given to understand that shares were
rematerialized by passing rectification entry. There
were 12 transactions for 3 folios where shares were
rematerialized by passing rectification entry and
there are no physical documents available to verify
the same. However, the details for the said
transactions were available in Sharepros back office
system at their premises.
There were 3 transactions for 2 folio where shares
were first split and then transferred, this transaction
took place by passing a rectification entry.
There were 3 transactions for 1 folio which was
originally a transmission entry where the original
investor was deceased and his son wanted to
transfer shares in his name, Sharepro had started the
process and transferred it in his son's name, but due
to incomplete documents and objection from Merck,
shares where again transferred back to the original
investor's name by passing a rectification entry.
There were 37 transactions for 1 folio where proof of transfer
was not available.
21
Final report

SN
Category
Total no. of
transactions
Sample transactions Samples

for review
reviewed
Transmission
No observations
Change in
shareholders
address
No observations
We have mentioned in Annexure - II, potential cases where we were unable to check veracity of the
underlying documents as they were related to the period where details of which were either not available
online or the copy of documents were not made available to us by Sharepro.
22
Final report
Annexures
23
Final report
Annexure I Pending information / data
Back
24
Final report
Annexure I Documents that could not be checked for

veracity
SN
Sell folio
Seller name
Buy folio
Buy name
Observations
Number of
shares
Mala Mahadevan
Iyer
S002802 Surinder Kumar
M002149
1 NSDLEM01
National Securities
Depository Ltd
2 CDSLEM01
Central Depository
Services (I) Ltd
3 V002450
Valerie Ann D'Souza V002306
4 G002022
Gopalkrishnan
Vaidyanathan
S010445
G002023
V003515
5 K000497
Kanchanben
Prafulchandra Shah
P004667
6 R006094
Raghunath Vithal
Prabhu
R003874
Back
We are given to understand that in case of

rematerialisation of shares entries are
passed through rectification. However, there
were no physical documents to verify the
Swati Garg
same.
Details for this transaction were neither
V Devarajan
availabe in physical forms nor any details
available in the system.
Gopalkrishnan
In this case shares were split and then
Vaidyanathan
transferred to different folios. There were no
physical documents available for reivew
V S Mani
We could not verifiy death certificate due to
Parida S Thanawala non-availability of information on
government website.
This was the case of change in surname
Raghunath Vithal
where no underslying documents avaialble
Gaonker
for review
Total
134
119
83
100
30
30
50
50
596
25
Final report
Annexure I I Sample transactions Transfer cases

(1/6)
Back
222 transactions for 39 folios where share transfer application request was missing
SN
Transaction
Seller folio
number
Seller name
Buyer
folio
Buyer name
Number of
shares
150285
P002131
Phoolchand J Dubey
N005197
Nitin Nautamlal Desai
110
150285
P003038
Phoolchand J Dubey
N005197
150299
B001429
Babubhai Dahyabhai Desai
S010440
Shishir Babubhai Desai
160
150319
C000674
Carmo Anthony D'Souza*
C001893
Carmo Anthony Dsouza*
244
150346
V001832
Vipul Jayraj Udeshi
A005070
Aruna Jayraj Udeshi
235
150377
S006885
Sunil Boran Chakraborty
S010462
Sunil Baran Chakraborty
160
150382
V000129
Vandna Jayrambhai Patel
J004286
Jayrambhai S Patel
168
150392
M003141
Manierach Engineer
R006020
Rusi Chacha
344
150394
D001985
Durgaiah M
N005197
100
10
150406
A000774
Anupchand Nathubhai Dagli
A005079

Anupchand Nathubhai
Dagli
11
150433
K000497
P004667
Parida S Thanawala
194
12
150449
U000692
Kanchanben Prafulchandra
Shah
Urmilakumari
S010481
Snehlata Kumari
375
13
150483
B002306
Baban Jagtap
N005153
14
150485
S005383
Sorab Cawas Bilimoria
P004671
Pervin Cawas Bilimoria
106
15
150492
T000571
Taridevi S Bhatt
N005153
225
16
150507
R000380
Rajendrakumar H Patel
R006043
Rajendra H Patel
244
17
150562
V002507
Virbala Bansirao Thakor
R006053
Rupa Vatsal Chhatrapati
194
18
150570
T000724
Tilak Raj Bahri
T001025
Tilakraj Bahri
100
19
150606
A000588
Anil Leonard Crasto
J004302
Joyce Merlyn Crasto
234
20
150629
R003501
Raghunath Das Kankani
S010525
Satish Chandra Kankani
115
50
244
50
*Instances where the buyer name and seller name is same indicate transfers cases where the shares were held in joint names
and there is change in ownership in one or more joint share holders.
26
Final report

(2/6)
Back
222 transactions for 39 folios where share transfer application request was missing
SN
Transaction
Seller folio
number
21
150663
P000193
Pankaj Jashbhai Patel
J004309
Jaypal Mukeshkumar Shah
244
22
150674
R003730
Rakesh Rashilal Patel
H002441
Haresh J Patel
110
23
150693
N001675
Narender Nath Shangari
U001122
Usha Shangari
235
24
150703
M001238
Minaxi Jashbhai Patel
J004309
Jaypal Mukeshkumar Shah
244
25
150710
S006826
Shyamala Shridhar Prabhu
26
150715
A001098
Asha Pandurang Nayak
27
150720
V000355
Veena Ramakant Kamat
M005569 Mahesh Shridhar Prabhu

Srinagendra Madhav
S010542
Kamath
U001123 Uma Pandurang Kamat
28
150751
S002324
Sulochanaben Hiralal Parikh S010549
Sulochna Hiralal Parikh
244
29
150775
P002609
Patricia D'Souza
P004712
Patricia Dsouza
244
30
150792
N004600
Nand Kishore Rathi
E000224
Ekta S
100
31
150845
N000401
Naresh S Maniar Karta
A005142
32
150848
V000865
Vinodini Pradhan
V003521
33
150856
R002610
Rita Suri
R006102
Arpan Naresh Maniar

Vinodini Chandrasen
Pradhan
Rajiv Suri
34
150875
C000799
Charmaine Paul Fernandes
C001921
Carol Fernandes
79
35
150876
C000798
Carol Paul Fernandes
C001921
Carol Fernandes
298
36
150879
C000800
Cedric Paul Fernandes
C001919
Cynthia Rodrigues
127
37
150887
M005524
Meher Kaikhushroo Doctor
38
150905
A002608
Abubakar Ahmed Sheth
39
150913
L000279
Lednie D Gomes
M005591 Meher K Doctor

Hashim Mahmed
H002457
Akhalwaya
L001234 Leonie Dorothy Gomes
Total
Seller name
Buyer
folio
Buyer name
Number of
shares
150
165
85
95
159
150
168
50
125
6,724
27

(3/6)
Final report
Back
118 transactions for 20 folios where proper KYC documents were not available
SN
Transactio
n number
1
2
3
150449
150392
150539
150296
150319
150406
7
8
9
10
150346
150476
150492
150287
11
150433
12
13
14
15
16
17
18
19
20
Total
150382
150299
150377
150285
150285
150379
150485
150394
150483
Seller
folio
Seller name
U000692 Urmilakumari
M003141 Manierach Engineer
A002405 Aruna Navanitlal Parekh
Buyer
folio
Buyer name
S010481 Snehlata Kumari

R006020 Rusi Chacha
A005097 Aruna Navanitlal Parekh
Kiritkumar Ramanbhai
K001640 Kiritkumar Ramanbhai Patel K004601
Patel
C000674 Carmo Anthony D'Souza
C001893 Carmo Anthony Dsouza
Anupchand Nathubhai
A000774 Anupchand Nathubhai Dagli A005079
Dagli
V001832 Vipul Jayraj Udeshi
A005070 Aruna Jayraj Udeshi
M002578 Mohan Rao Tamiri
M005534 Mohana Rao Tamiri
T000571 Taridevi S Bhatt
N005153 Nitin Nautamlal Desai
S008165 Shakuntala Dwarkadas
J004279 Janak Dwarkadas Merchant
Kanchanben Prafulchandra
K000497
P004667 Parida S Thanawala
Shah
V000129 Vandna Jayrambhai Patel
J004286 Jayrambhai S Patel
B001429 Babubhai Dahyabhai Desai S010440 Shishir Babubhai Desai
S006885 Sunil Boran Chakraborty
S010462 Sunil Baran Chakraborty
P002131 Phoolchand J Dubey
P003038 Phoolchand J Dubey
K001750 Kirtiben Jasvantlal Shah
J004289 Jashvantlal Panjulal Shah
S005383 Sorab Cawas Bilimoria
P004671 Pervin Cawas Bilimoria
D001985 Durgaiah M
B002306 Baban Jagtap
Number of
shares
375
344
315
244
244
244
235
235
225
200
194
168
160
160
110
50
156
106
100
50
3,915
28
Final report
Annexure I I Sample transactions Customer complaints

(4/6)
Back
Customer complaint for non-receipt of dividend despite being shown as paid in the
DIVIDEND file
SN
Issue date
1
2
3
4
5
6
7
8
9
10
Total
5-May-06
30-Mar-07
6-Apr-07
21-Apr-08
24-Apr-09
5-Apr-10
28-Oct-10
28-Mar-13
24-Mar-14
16-Apr-15
Folio number
IN30133017269012
IN30133017269012
IN30133017269012
IN30133017269012
IN30133017269012
IN30133017269012
IN30133017269012
IN30133017269012
IN30133017269012
IN30133017269012
Warrant
Number
16948
17208
17208
17509
17686
16226
17221
17648
18538
20238
Paym
Shareholder name
ode
WR Hari Kishan Lal Bhatia
EC
Hari Kishan Lal Bhatia
EC
EC
Paid date
9-May-06
23-Apr-07
24-Apr-07
28-Apr-08
5-May-09
3-Dec-10
8-Nov-10
NULL
NULL
NULL
Number Amount of dividend

of shares
(in INR)
75
1,125
75
750
75
1,500
75
750
75
1,313
75
1,500
75
7,125
75
188
75
638
75
450
75
15,339
29
Final report
Annexure I I Sample transactions Duplicate share

certificate (5/6)
2 transactions for 1 folio where affidavit was

not available
72 transactions for 15 folios where

FIR copy was not available
Number of
shares
240
Folio
Shareholder name
number
D001992 D Suguna
S006553
Sushila Rajani
200
D000583
Dilipkumar R Parikh
190
D000702
Dipak Raj Sood
190
R001066
Ramilaben D Desai
169
K000722
Karanmal Doshi
134
R002512
Roshan Sam Boyce
120
R002906
119
K001085
10
R003247
11
H000890
12
G001788
Rustum Sam Boyce

Kiritkumar Talakshi
Solani
Rekha D Shetye
Hasanali Sunderji
Adtani
Gulshan Kumar
13
S007842
100
14
B002524
15
Total
R004004
Saroj R Bhattad
B Udaya Kumar
Hegde
Rekha Dilip Shetye
SN
Back
Folio number
S007795
Shareholder name
Sanghu Valley India
Limited
Certificate
number
Number of
shares
267395
50
267396
50
100
Total
42 transactions for 7 folios where

income proof of surety was not available
Folio
Shareholder name
number
S002555 Sunita Kumari Bali
114
D000702
Dipak Raj Sood
190
109
R001066
Ramilaben D Desai
169
K001085
Kiritkumar Talakshi Solani
119
H000890
Hasanali Sunderji Adtani
114
G001788
Gulshan Kumar
109
7
Total
S007795
Sanghu Valley India Limited
119
115
100
100
2,119
SN
Number of
shares
244
100
1,045
30
Final report
Annexure I I Sample transactions Rectification entries

(6/6)
SN
Particulars
Buyer folio
number
Instances where neither physical documents were

available nor transaction was available in Sharepros
back office system
M002149
Instances where shares were rematerialized by passing
S002802
a rectification entry
S010445
Total
Instances where shares were first split and then

transferred by passing a rectification entry.
V002306
G002023
V003515
Instances where shares belonging to one investor was
deceased and his son wanted to transfer shares in his
name. Sharepro had started the process and
transferred it in his son's name, but due to incomplete R004868
documents and objection from Merck, shares where
again transferred back to the original investor's name
by passing a rectification entry.
Buyer name
Back
Number of
Count of
shares
transactions
V Devarajan
100
Mala Mahadevan Iyer
134
Surinder Kumar
119
Swati Garg
Gopalkrishnan
Vaidyanathan
V S Mani
83
30
30
Rajkumar Goel
14
510
20
31
Final report
Annexure IV - Routine 1 : Same bank account number and same

bank name for different folio numbers
Back
Bank account number
Bank name
00000000000000002897
Central Bank of India
00000000000000005578
Bank of Maharashtra
00000000000000015222
Indian Bank
Folio number
Shareholder name
A001622
IN30051310292362
IN30088814557267
Asma A Bamboat
T Krishnamoorthy
Anju Arvind Kothari
Shubhada Ramchandra
Naniwadekar
Roja Dorai
Shiv Kumar
S003345
R002357
S004084
Amount of dividend
(in INR)
120,655
12,903
21,850
Total
96,933
24,540
24,540
301,421
32
Annexure V - Routine 2 : Same shareholder(identified basis

same Folio) multiple account numbers
SN
Particulars
Folio number
1202000000137449
1202160000014934
C000701
Dividend paid, but stopped

immediately after changing bank
account number
J001727
M001238
P000193
P001132
S002324
S002397
T000198
1201070000001466
1202810000004939
2
Three or more bank accounts in the

1302340000092438
review period
M000107
P003042
Dividend was not claimed for one

year and a considerable amount
1201320000003830
was paid post the year in which the
bank account number was changed.
Bank account number
Final report
Back
Amount of dividend
(in INR)
37692 and 596902010001048

6420 and 4631000027634
219085 and 1721290409
3346 and 0852500100334601
1104 and 0115301000007566
18045 and 0115301000001869
4156 and 25260100006224
1259 and 1579644008
179 and 04980100002191
2904 and 0392000100029048
0012100003884, 00601330072752,
008290700001980 and 0601330072752
90279 ,03790400000019 and
006610110001535
480, 664501416443 and 3750101416443
318043, 90092010074452 and
0415104000024471
18095, 627801089383 and
041201000413
33,948
400947007 and 00600340012582
82,045
Total
38,653
29,813
45,750
45,750
45,750
45,750
45,750
29,813
43,875
97,375
79,264
37,900
39,673
28,125
769,232
33
Final report
Annexure VI - Routine 3 : Dividend claimed summary

(1/3)
Back
Category I - The amounts for unclaimed dividend for 4 or more previous years was claimed in one year and there was no
dividend claimed prior to or after the year in which it was claimed in lumpsum
Folio number
H000519
B000408
S007972
S001682
IN30290242131250
S003323
S007150
N001021
M005545
J000447
IN30061010382877
J000153
IN30060110228744
P000915
J000060
K000746
K002080
H000497
R000163
H001942
N002158
K000054
S001060
C000518
N000651
K000386
A003192
S005486
C001257
B002738
S008543
C000392
C001451
A003238
2006
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2007
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2008
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
4
0
0
0
2009
0
0
0
0
0
0
0
0
0
0
0
0
5
0
0
0
4
4
0
0
0
0
0
0
0
0
4
0
0
0
0
0
4
0
2010
5
0
0
6
0
0
6
0
0
0
5
0
0
4
0
7
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
6
0
0
2011
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
7
4
7
6
6
0
0
6
0
0
0
0
0
6
2012
0
7
7
0
0
7
0
0
0
7
0
0
0
0
7
0
0
0
0
7
0
0
0
0
0
0
0
0
7
0
0
0
0
0
2013
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2014
0
0
0
0
6
0
0
6
0
0
0
0
0
0
0
0
0
0
6
0
0
0
0
0
0
8
0
0
0
6
0
0
0
0
2015
0
0
0
0
0
0
0
0
5
0
0
6
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0 denotes instances where no dividend was claimed in that year and a number denotes that dividend was claimed for those
many years in that particular year
34
Final report

(2/3)
Back
Category II - The amounts for unclaimed dividend for 4 or more previous years were claimed in multiple years and there was
significant time gap between dividend claimed in one year with that to the subsequent year.
Folio number
S002487
S008418
S009992
J001097
F000072
N004607
M003634
P000202
P003090
H000603
O000131
S004288
M000855
T000869
R005291
H000890
U000009
L000233
S006659
S006654
M002101
V000572
L000467
D001487
B001806
K001192
2006
0
1
1
1
0
0
1
0
0
1
0
0
0
0
1
1
0
0
0
0
0
1
1
0
1
0
2007
0
0
2
2
0
0
2
2
0
2
0
0
0
0
2
2
0
0
1
1
0
0
2
0
0
0
2008
0
0
0
0
0
0
0
0
0
1
0
0
0
0
1
0
0
0
0
0
0
0
1
0
0
0
2009
0
0
0
0
1
2
0
0
0
1
4
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2010
0
0
0
0
6
0
4
5
7
0
1
0
1
1
0
0
0
6
0
0
6
6
0
0
1
0
2011
7
0
0
0
0
0
0
0
0
0
0
0
6
5
0
0
0
1
6
0
0
0
0
0
5
0
2012
0
6
0
0
0
0
0
0
0
0
0
0
0
0
0
4
7
0
0
0
0
0
0
0
0
0
2013
1
0
5
0
0
1
0
1
0
0
0
8
0
0
4
0
1
0
0
6
1
0
0
0
0
7
2014
1
0
1
0
0
5
1
1
1
0
0
0
0
0
0
0
1
0
0
0
0
0
0
6
0
1
2015
1
0
0
6
0
1
2
1
1
4
0
1
0
0
0
0
1
0
0
0
0
0
5
1
0
0
35
Final report

(3/3)
Back
Category II - The amounts for unclaimed dividend for 4 or more previous years were claimed in multiple years and there was
significant time gap between dividend claimed in one year with that to the subsequent year.
2006
2007
2008
2009
2010
2011
2012
2013
2014
Z000175
Folio number
2015
6
P004232
K004073
R003594
S008500
L001023
H000862
D001098
A000717
A000163
A001400
V000390
B002334
IN30088813435000
J001570
J004105
I000122
V002353
K002203
P002169
C001330
I000401
N001293
36
Thank You
The information contained herein is of a general nature and is not intended to
address the circumstances of any particular individual or entity. Although we
endeavour to provide accurate and timely information, there can be no
guarantee that such information is accurate as of the date it is received or
that it will continue to be accurate in the future. No one should act on such
information without appropriate professional advice after a thorough
examination of the particular situation.
[2016] KPMG, an Indian Registered Partnership and a member firm of the
KPMG network of independent member firms affiliated with KPMG
International Cooperative (KPMG International), a Swiss entity. All rights
reserved.
The KPMG name and logo are registered trademarks or trademarks of KPMG
International.

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Merck Limited

Background and objective

In respect of clarification sought by us, we have relied on the explanation provided to us by

Background and objective

whether shares of Merck had been fraudulently transferred to a person/entity who

Transfer/ Transmission of shares

Executive Summary (1/3)

Rightful shareholders as per SEBI order in DIVIDEND file

Key word search for accused entities/individuals

Comparison of DIVIDEND file and bank payment advice

Same folio different shareholder name in DIVIDEND file

Shareholder name contains Karkera

Shareholder name contains Bhalakia

Payouts to accused entities/individuals bank account numbers mentioned in SEBI order

Executive Summary (2/3)

Transfer of Shares (EMTRAN) under multiple scenarios as under:

Executive Summary (3/3)

In cases of issue of duplicate share certificates, supporting documents such as copy of

In cases of deletion of name, proof of transfer (1 folios) was missing.

We were given to understand that shares are rematerialized by passing rectification

Detailed observations - Data analytic routines

Detailed observations - Data analytic routines

Detailed observations - Data analytic routines

Dividend amount (in

Detailed observations - Data analytic routines

Amount of dividend (in INR)

Rachit Investments Limited

Kewal Krishna Thakar

Sankar Kumar Saha

Kewal Krishna Thakar

S S Kantilal Ishwar. Sec

Avutu Sambi Reddy

Detailed observations - Data analytic routines

Dividend amount (in INR)

Detailed observations Share transactions

Detailed observations with reference to the transaction

There were 222 transactions for 39 folios where share transfer

Detailed observations Share transactions

Detailed observations with reference to the transaction

We were provided with the physical documents only for 3

Detailed observations Share transactions

Sample transactions Samples

Detailed observations with reference to the transaction

Annexure I Pending information / data

Annexure I Documents that could not be checked for

Valerie Ann D'Souza V002306

We are given to understand that in case of

Annexure I I Sample transactions Transfer cases

Nitin Nautamlal Desai

Nitin Nautamlal Desai

Babubhai Dahyabhai Desai

Shishir Babubhai Desai

Carmo Anthony D'Souza*

Carmo Anthony Dsouza*

Vipul Jayraj Udeshi

Aruna Jayraj Udeshi

Sunil Boran Chakraborty

Sunil Baran Chakraborty

Vandna Jayrambhai Patel