MIRA
INFORM REPORT
|
Report Date : |
12.09.2011 |
IDENTIFICATION DETAILS
|
Name : |
HERBALIFE INTERNATIONAL INDIA PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
Vaswani Wilshire No. 14, Commissariat Road, Bangalore – 560025,
Karnataka |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2010 |
|
|
|
|
Date of
Incorporation : |
08.10.1998 |
|
|
|
|
Com. Reg. No.: |
08-026098 |
|
|
|
|
Paid-up Capital
: |
Rs. 40.786 Millions |
|
|
|
|
CIN No.: [Company Identification No.] |
U51909KA1998PTC026098 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BLRH00659B |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACH8025R |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business
: |
Manufacturer and Distributor of weight management, nutritional and
personal care products |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (52) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 1300000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
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|
|
|
Comments : |
Subject is an established company having fine track. General
information position of the company is good. Trade relations are reported as
fair. Business is active. Payments are reported to be regular and as per
commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2010
|
Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
|
|
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 : |
Vaswani Wilshire No. 14, Commissariat Road, Bangalore – 560025,
Karnataka, India |
|
Tel. No.: |
91-80-40311444/40311333 |
|
Fax No.: |
91-80-40311334 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Mumbai Sales Center : |
Al-Dossal, 50 Pali Road, Bandra (West), Mumbai – 400 050,
Maharashtra, India |
|
|
|
|
New Delhi Pick-Up Center : |
Nulon House, Tribhuvan Complex, Delhi Mathura Road, New
Delhi 110 065, India |
|
|
|
|
Kolkata Sales Center : |
Bharatiya Bhasha Parishad, Ground Floor, 36 A Shakespeare
Sarani, Kolkata 700017, West Bengal,
India |
|
|
|
|
Corporate Headquarter : |
800 West Olympic Blvd, Suite 406, Los Angeles, CA 90015,
USA |
|
Tel. No.: |
866-866-4744 |
|
Fax No.: |
310-258-7019 |
DIRECTORS
As On 31.12.2009
|
Name : |
Mr. Robert Nathan Levy |
|
Designation : |
Director |
|
Address : |
10584 Bradbury Road, Los Angeles California, 90064, United States Of America |
|
Date of Birth/Age : |
13.12.1958 |
|
Date of Appointment : |
08.01.2007 |
|
DIN No.: |
01837673 |
Other Directorship:
|
S.No. |
CIN |
Name
of the Company |
Current
designation of the director |
Date
of appointment at current designation |
Original
date of appointment |
Company
Status |
Defaulting
status |
|
1 |
U51909KA1998PTC026098 |
Herbalife
International India Private Limited |
Director |
08.01.2007 |
08.01.2007 |
Active |
NO |
|
Name : |
Mr. Richard Paul Goudis |
|
Designation : |
Director |
|
Address : |
26620 Alsace Drive, Calabasas, 90302, United States Of America |
|
Date of Birth/Age : |
31.03.1961 |
|
Date of Appointment : |
28.08.2004 |
|
DIN No.: |
00552336 |
Other Directorship:
|
S.No. |
CIN |
Name
of the Company |
Current
designation of the director |
Date
of appointment at current designation |
Original
date of appointment |
Company
Status |
Defaulting
status |
|
1 |
U51909KA1998PTC026098 |
Herbalife
International India Private Limited |
Director |
28.08.2004 |
28.08.2004 |
Active |
NO |
|
Name : |
Timothy John Sanson
|
|
Designation : |
Director |
|
Address : |
7 Clark Street,
Wayville, 5034 , Australia |
|
Date of Birth/Age : |
17.08.1959 |
|
Date of Appointment : |
15.09.2008 |
|
DIN No.: |
02398901 |
Other Directorship:
|
S.No. |
CIN |
Name
of the Company |
Current
designation of the director |
Date
of appointment at current designation |
Original
date of appointment |
Date
of cessation |
Company
Status |
Defaulting
status |
|
1 |
U51909KA1998PTC026098 |
Herbalife
International India Private Limited |
Director |
15.09.2008 |
15.09.2008 |
21.06.2010 |
Active |
NO |
KEY EXECUTIVES
|
Name : |
KCV Muralitharan |
|
Designation : |
Company Secretary |
|
Address : |
Flat No 102, Jyothi Meadows,, Shivalingaiah Colony, Vimanapura, Bangalore - 560017, Karnataka, India |
|
Date of Birth/Age : |
20.06.1965 |
|
Date of Appointment : |
04.02.2008 |
|
Pan No.: |
ADKPM4863E |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As On 31.12.2009
|
Names of Shareholders |
|
No. of Shares |
|
Herbalife International INC – USA |
|
3099755 |
|
HIIP Investment Company, LLP – Inglewood CA |
|
978870 |
|
Total |
|
4078625 |
As On 31.12.2009
|
Category |
Percentage |
|
Foreign holdings( Foreign institutional
investor(s), Foreign companie(s) Foreign financial institution(s),
Non-resident Indian(s) or Overseas Corporate bodies or Others |
100.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Distributor of weight management, nutritional and
personal care products |
|
|
|
PRODUCTION STATUS (As On 31.03.2010)
Actual Production:
275918
Nos.
Details of Traded
Goods*
|
Class of Goods |
31.03.2010
(Rs. In Millions) |
|
Nourifusion |
|
|
Opening Stock |
0.733 |
|
Purchases |
7.928 |
|
Closing Stock |
2.383 |
|
Sales |
42.558 |
|
Class of Goods |
31.03.2010
(Rs. In Millions) |
|
Others* |
|
|
Opening Stock |
4.107 |
|
Purchases |
27.459 |
|
Closing Stock |
7.581 |
|
Sales |
107.193 |
* Note: Individual items
under “Others” do not account for more than 10% of the total value of
consumption. Hence, the quantitative details of the same are not disclosed.
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
|
|
|
|
Bankers : |
Not Available |
|
|
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
B S R and Company Chartered Accountant |
|
Address : |
Maruthi Info Tech Centre, 11-12/1 Inner Ring Road, Koramangala,
Bangalore – 560071, Karnataka, India |
|
Pan No.: |
AAAFB9852F |
|
|
|
|
Ultimate Holding Company : |
·
Herbalife Limited (Cayman Islands) |
|
|
|
|
Holding Company : |
·
Herbalife International Inc, USA |
|
|
|
|
Associates/Subsidiaries : |
·
HIIP Investments Company, LLC |
|
|
|
|
Fellow Subsidiaries : |
·
Herbalife International Philippines, Inc ·
Herbalife International Luxembourg s a r l ·
Herbalife International of Hongkong Limited ·
Herbalife Korea Company Limited ·
Herbalife International (Thailand) Limited ·
Herbalife Australasia Pty Limited ·
Herbalife International Singapore Pte Limited ·
Herbalife Products Malaysia Sdn Bhd. ·
Herbalife UK Limited ·
Herbalife International of America ·
Herbalife International Finland BV ·
Herbalife of Canada Limited ·
Herbalife Denmark Aps ·
Herbalife of Japan K. K ·
Herbalife UK Limited ·
Herbalife International France, S. A ·
Herbalife Taiwan Inc, Taiwan Branch ·
Herbalife Norway Proudcts A. S ·
Herbalife Sweden Aktiebolag AB ·
Herbalife International Greece, S A ·
PT Herbalife Indonesia ·
Herbalife (NZ) Limited ·
Herbalife International, S A (Portugal) ·
Herbalife International Espana, S A ·
Herbalife China ·
Herbalife International de Mexico, S. A. de C. V ·
Herbalife Italia, S. p. A |
CAPITAL STRUCTURE
As On 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
6000000 |
Equity Shares |
Rs. 10/- each |
Rs. 60.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4078625 |
Equity Shares |
Rs. 10/- each |
Rs. 40.786
Millions |
|
|
|
|
|
Note:
[Of the 3,099,735 (Previous year: 3,099,755) shares are being held by Herbalife International Inc., USA and 979,870 (Previous year: 978,870) equity shares are being held by HlIP Investments Company LLC, a fellow subsidiary. The Ultimate holding company is Herbalife Limited (Cayman Islands).
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 |
40.786 |
40.786 |
40.786 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
300.073 |
57.886 |
0.309 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
340.859 |
98.672 |
41.095 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
2.506 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
2.506 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
340.859 |
98.672 |
43.601 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
19.948 |
15.430 |
24.546 |
|
|
Capital work-in-progress |
2.397 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
34.681 |
11.400 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
144.508
|
50.109 |
47.496 |
|
|
Sundry Debtors |
0.000
|
0.000 |
0.000 |
|
|
Cash & Bank Balances |
417.738
|
224.137 |
87.133 |
|
|
Other Current Assets |
0.000 |
0.000 |
0.000 |
|
|
Loans & Advances |
231.475
|
197.344 |
176.654 |
|
Total
Current Assets |
793.721
|
471.590 |
311.283 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
345.164
|
341.798 |
261.127 |
|
|
Other Current Liabilities |
99.650
|
39.868 |
25.695 |
|
|
Provisions |
65.074
|
18.082 |
5.406 |
|
Total
Current Liabilities |
509.888
|
399.748 |
292.228 |
|
|
Net Current Assets |
283.833
|
71.842 |
19.055 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
340.859 |
98.672 |
43.601 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
1549.270 |
751.360 |
513.120 |
|
|
|
|
|
|
|
|
|
Less |
EXPENSES |
NA |
NA |
NA |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
379.294 |
74.261 |
(31.794) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
10.843 |
11.658 |
12.310 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX |
368.451 |
62.603 |
(44.104) |
|
|
|
|
|
|
|
|
|
Less |
TAX |
126.264 |
5.026 |
7.559 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX |
242.187 |
57.577 |
(51.663) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
57.886 |
0.309 |
51.972 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
300.073 |
57.886 |
0.309 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Traded Items |
11.087 |
3.459 |
0.606 |
|
|
TOTAL IMPORTS |
11.087 |
3.459 |
0.606 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
59.38 |
14.12 |
NA |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Net Profit Margin (PBT/Sales) |
(%) |
23.78
|
8.33 |
(8.60) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
45.28
|
12.85 |
(13.13) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
1.08
|
0.63 |
(1.07) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.50
|
4.05 |
7.17 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.56
|
1.18 |
1.07 |
LOCAL AGENCY FURTHER INFORMATION
BACKGROUND
Subject is a
subsidiary of Herbalife International Inc., USA ('Holding Company’). The
Company was incorporated in I998 as a Private Limited Company under the
Companies Act, 1956 ("the Act") with Herbalife International Inc.,
USA and HIIP Investments Company LLC holding 76% and 24% respectively of the
paid-up equity share capital. The ultimate holding company is Herbalife Limited
(Cayman Islands). The registered office of the Company is located at Bangalore,
Karnataka, India.
The Company is in
the business of manufacturing, through contract manufacturers, and distributing
advanced weight management and nutritional products and trading of cosmetic
products which it operates through direct selling network.
Note:
The Registered Office of the company has been shifted from 115,
Koramangala Industrial Layout, Kormangala, Bangalore – 560095, Karnataka, India
to the present address w.e.f 22.01.2007.
OPERATIONS:
During
the year, the company reported a profit of INR 242.100 millions as compared to INR 57.500 millions in
previous year. The net sales for the current year was INR 1549.270 millions as compared to last pear INR 751.360 millions. Improved sales
performance is on account of increased Distributor Recruitment, Improvement in
retention percentages and increase in number of nutrition clubs.
Fixed Assets:
·
Furniture and Fixtures
·
Leasehold improvements
·
Office equipment
·
Computer equipment
·
Vehicles
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.46.38 |
|
|
1 |
Rs.74.01 |
|
Euro |
1 |
Rs.64.48 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
52 |
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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.