MIRA INFORM REPORT

 

 

Report Date :

31.05.2011

 

IDENTIFICATION DETAILS

 

Name :

AMWAY INDIA ENTERPRISES PRIVATE LIMITED

 

 

Registered Office :

First Floor, Elegance Tower, Plot No.8, Non Hierarchical Commercial Centre Jasola, New Delhi – 110 025

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

03.08.1995

 

 

Com. Reg. No.:

55-071405

 

 

CIN No.:

[Company Identification No.]

U74899DL1995ULT071405

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Subject is engaged in the direct selling business and primarily deals in products relating to home care, personal care, nutritional and wellness, service income and others.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (45)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 5468000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – April 1, 2010

 

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

LOCATIONS

 

Registered Office :

First Floor, Elegance Tower, Plot No.8, Non Hierarchical Commercial Centre Jasola, New Delhi – 110 025, India

E-Mail :

yoginder_singh@amway.com

Website :

www.amway.in

 

 

Corporate Office :

9th Floor, Tower A and B, Express Trade Towers 1, Plot No.15-16, Sector 16A, Noida – 201 301, Uttar Pradesh, India

Tel. No.:

91-120-3096500/ 3096586

Fax No.:

91-120-3096552/ 3096554

 

 

Regional Office:

Ground Floor, Natraj M V Road, Western Express Highway, Andheri (E), Mumbai – 400069, India 

 

 

DIRECTORS

 

As on 20.07.2010

 

Name :

Mr. William Scott Pinckney

Designation :

Managing Director

Address :

K 207, Sanik Farms, New Delhi – 110 062, India 

Date of Birth/Age :

03.11.1948

Date of Appointment :

14.05.2009

 

 

Name :

Kim Sarahjane Mitchell

Designation :

Director

Address :

7575, East Fulton Street, Michigan, USA 49355

Date of Birth/Age :

19.11.1954

Date of Appointment :

25.09.2006

 

 

Name :

Mr. Arvind Kalra

Designation :

Alternate Director

Address :

784, Sector-15-A, Faridabad – 121 006, Haryana, India

Date of Birth/Age :

09.09.1964

Date of Appointment :

29.11.2007

 

 

Name :

Mr. Thomas J. Glashower

Designation :

Director

Address :

7425, Sleepy Hollow, Dr. Hudsonville, Michigan, USA 494269162

Date of Birth/Age :

31.08.1966

Date of Appointment :

28.07.2009

 

 

Name :

Mr. Sanjay Malhotra

Designation :

Alternate Director

Address :

A 145, Sector 15, Noida – 201 301, Uttar Pradesh, India

Date of Birth/Age :

22.02.1970

Date of Appointment :

08.09.2009

 

 

Name :

Mr. Anshu Budhraja

Designation :

Director

Address :

House No.10A, Paschim Marg, DLF Phase – I, Gurgaon – 122 001, Haryana, India

Date of Birth/Age :

08.01.1971

Date of Appointment :

28.07.2009

 

 

Name :

Mr. Arvind Junagade 

Designation :

Director

Address :

E-70, Greenwood City, Sector – 46, Gurgaon, Haryana, India

Date of Birth/Age :

22.05.1948

Date of Appointment :

30.03.2009

Date of Ceasing :

28.07.2009

 

 

KEY EXECUTIVES

 

Name :

Mr. Yogendra Singh

Designation :

Secretary

Address :

48, Amarpali Apartment, 1, P. Extension, Patpargunj, Delhi – 110 092, India 

Date of Birth/Age :

09.09.1970

Date of Appointment :

15.06.2009

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 20.07.2010

 

Names of Shareholders

 

No. of Shares

 

Amway Mauritius Investment Company, Mauritius

 

10696441

Amway Mauritius Development Company, Mauritius

 

10696441

Total

 

21392882

 

As on 20.07.2010

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in the direct selling business and primarily deals in products relating to home care, personal care, nutritional and wellness, service income and others.

 

 

GENERAL INFORMATION

 

Bankers :

Not Available

 

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

S.R. Batliboi and Company

Chartered Accountants

Address :

6th Floor, H.T. House, 18-20, Kasturba Gandhi Marg, New Delhi – 110 001, India

 

 

Holding Company :

Amway International Inc., USA (Formerly known as Amway Corporation, Ada, Michigan, USA)

 

 

Ultimate Holding Company :

Alticor Global Holdings Inc., USA

 

 

Subsidiaries :

·         Amserve Consultants Limited

CIN No.: U74140DL2004PLC127936

 

·         Amsure Insurance Agency Limited

CIN No.: U67200DL2004PLC127937

 

·         Amway Foreign Development LLC, USA

·         Amway India Investment LLC, USA

·         Amway India Development LLC, USA

·         Amway Nederland Limited

·         Solstice Holdings Inc., USA (Formerly Alticor Holdings Inc.)

·         Amway Mauritius Investment Company

·         Amway Mauritius Development Company

·         Alticor Inc., USA

·         Amway Opportunity Foundation

·         Amway India Enterprises Employees Provident Fund

·         Amway India Enterprises Employees Superannuation Fund

·         Amway India Enterprises Employees Gratuity Fund

 

 

Fellow Subsidiaries :

·         Access Business Group International, LLC

·         Amway of Australia, Australia

·         Amway Malaysia Sdn. Bhd.

·         Amway Hong Kong Limited

·         Amway China Company Limited

·         Merchandising Production Inc.

·         Amway (Thailand) Limited

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

25000000

Equity Shares

Rs.10/- each

Rs.250.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

21392882

Equity Shares

Rs.10/- each

Rs.213.929 millions

 

 

 

 

 

The entire share capital is held by the Amway Mauritius Development Company and Amway Mauritius Investment Company in the ratio of 1:1. Ultimate holding company is Alticor Global Holdings Inc., USA.

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2010

31.03.2009

31.03.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

213.929

213.929

213.929

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

1153.024

963.224

1159.864

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

1366.953

1177.153

1373.793

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

0.000

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

0.000

0.000

0.000

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

1366.953

1177.153

1373.793

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

180.466

155.828

127.100

Capital work-in-progress

8.651

29.702

9.214

Intangible Assets

31.800

36.906

10.409

 

 

 

 

INVESTMENT

422.706

301.000

1145.161

DEFERREX TAX ASSETS

421.873

376.136

271.161

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
1008.081

991.537

630.745

 

Sundry Debtors
490.601

408.477

440.820

 

Cash & Bank Balances
2325.382

2212.908

1870.508

 

Other Current Assets
2.845

29.205

21.266

 

Loans & Advances
568.254

392.762

377.994

Total Current Assets
4395.163

4034.889

3341.333

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
1450.335

1399.826

1521.889

 

Other Current Liabilities
895.769

895.074

865.018

 

Provisions
1747.602

1462.408

1143.678

Total Current Liabilities
4093.706

3757.308

3530.585

Net Current Assets
301.457

277.581

(189.252)

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

1366.953

1177.153

1373.793

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

14741.300

11699.200

8281.600

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Traded Goods

268.166

266.153

NA

 

TOTAL IMPORTS

268.166

266.153

NA

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

Debt Equity Ratio

(Total Liability/Networth)

 
2.99

3.19

2.57

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.07

1.07

0.95

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Note:

The registered office of the company has been shifted from Plot No.5, DDA Local Shopping Centre, Okhla Commercial Centre, Phase-II, New Delhi – 110 020 to the present address w.e.f. 01.07.2010.

 

NATURE OF OPERATIONS:

 

Subject is a wholly owned subsidiary of Amway Corporation, Ada, Michigan, USA. Amway Corporation is one of the largest direct selling company in the world. Amway India, established in 1995, commenced commercial operations in May 1998 and has emerged as the largest direct selling company in India.

 

FINANCIAL HIGHLIGHTS

 

The Company has accrued an annual income of Rs.14741.300 millions in comparison to previous year’s income of Rs.11699.200 millions. The cost of goods sold and the operating expenses were marginally reduced

 

FINANCIAL PERFORMANCE

 

India economy has seen a remarkable turn around after Global melt down, GDP grew by 7.4% during FY 2009-10, against the forecast of 7.2%. The country strives to attain 8.5% growth of GDP in FY 2010-11. The FMCG companies are relying on the health mantra to get a greater share of the FMCG pie. FMCG continues to grow.

 

For Amway India, it has been a growth year. The company witnessed a growth of 26% over last year. The categories which have grown over previous year are Nutrition and Wellness by 26.3%, homecare by 39% and personal care by 39.7%.

 

The new recruitment to business has been increased by 26%

 

SUBSIDIARIES

 

The subsidiaries are doing extremely well and business has grown over previous years. Insurance business has witnessed a growth in India and both Amsure and Amserve are riding on the boom.

 

Amsure Insurance Agency Limited (Amsure)

 

Amsure was incorporated in July 2004 to take up the corporate agency in the field of life insurance. Amsure is a corporate agent for Max New York Life Insurance Company Limited. It commenced operations from the 17th October, 2005.

 

Amserve Consultants Limited (Amserve)

 

Amserve was incorporated in July 2004 to provide back office and consultancy services in the field of Insurance. Amserve provide back office support to Max New York Life Insurance Company Limited. It commenced operations from the 17th October, 2005.

 

CONTINGENT LIABILITIES:

 

Particulars

As on 31.03.2010

(Rs. in millions)

Sales tax demand notices

108.562

Income tax demand notices

27.416

Excise demand notice (including demand on Managing Director) 

1.500

Service tax demand notices

185.942

Total

323.420

 

FIXED ASSETS:

 

·         Leasehold Improvements

·         Plant and Machinery

- Equipment and Appliances

- Moulds, Jigs and Dies

·         Vehicles

·         Furniture and Fixtures

 

 

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 records 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

Indian Rupees

US Dollar

1

Rs.45.10

UK Pound

1

Rs.74.27

Euro

1

Rs.64.35

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--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

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

45

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

-

NB

                                       New Business

-

 

 

 

 

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

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