MIRA
INFORM REPORT
|
Report Date : |
14.01.2012 |
IDENTIFICATION DETAILS
|
Name : |
ORIFLAME INDIA PRIVATE LIMITED |
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Registered
Office : |
1st Floor, L-29 to 34, Connaught Place, Outer Circle,
Delhi-110001 |
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Country : |
India |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
25.08.1994 |
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Com. Reg. No.: |
55-061083 |
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Capital Investment
/ Paid-up Capital : |
Rs. 466.164 Millions |
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CIN No.: [Company Identification
No.] |
U74899DL1994PTC061083 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
DELO00843D |
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PAN No.: [Permanent Account No.] |
AAACO0256B |
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Legal Form : |
Private Limited Liability Company |
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Line of Business
: |
The Company is engaged in the business of selling beauty products. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (30) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 1200000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow But Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. There appears
some accumulated losses recorded by the company. However, trade relations are
reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some
cautions. |
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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office : |
1st Floor, L-29 to 34, Connaught Place, Outer Circle,
Delhi-110001, India |
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Tel. No.: |
91-11-43665550 |
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Fax No.: |
91-11-41551465 |
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E-Mail : |
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Branch Office : |
Located At ·
Ahmedabd ·
Bangalore ·
Chennai ·
Guwahati ·
Hyderabad ·
Indore ·
Jaipur ·
Kolkata ·
Lucknow ·
Ludhiana ·
Mumbai ·
Pune |
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All India Stock Points : |
Located At ·
Dimapur ·
Itanagar ·
Aizwal ·
Shillong |
DIRECTORS
AS ON 28.09.2011
|
Name : |
Mr. Dan Jesper Urban Martinsson |
|
Designation : |
Director |
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Address : |
Route De Ren I, Point Ohain, Brussels, Belgium-1380 |
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Date of Birth/Age : |
28.04.1966 |
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Date of Appointment : |
08.09.2005 |
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DIN No.: |
00329008 |
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Name : |
Mr. Wilhelm Gabriel Ducker Bennet |
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Designation : |
Director |
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Address : |
Bourgmestre, 32 Mood Ixelles-1050 |
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Date of Birth/Age : |
09.07.1968 |
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Date of Appointment : |
01.09.2007 |
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DIN No.: |
01905427 |
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Name : |
Mr. Marcus Leif Sandstrom |
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Designation : |
Director |
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Address : |
No.2, The Gree N Rajokari, New Delhi-110038, India |
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Date of Birth/Age : |
20.01.1972 |
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Date of Appointment : |
01.01.2010 |
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DIN No.: |
03023409 |
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 |
U74899DL1994PTC061083 |
ORIFLAME
INDIA PRIVATE LIMITED |
Director |
01-01-10 |
01-01-10 |
Active |
NO |
|
2 |
U91110DL2008NPL177380 |
SWEDISH
CHAMBER OF COMMERCE INDIA |
Director |
17-05-10 |
17-05-10 |
Active |
NO |
KEY EXECUTIVES
|
Name : |
Ms. Shivani Choudhary |
|
Designation : |
Secretary |
|
Address : |
Q No.90, Sector 3, Type 4, Sadiq Nagar, New Delhi-110049, India |
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Date of Birth/Age : |
20.03.1983 |
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Date of Appointment : |
10.09.2010 |
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Pan No.: |
AJNPC7465M |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 28.09.2011
|
Names of Shareholders |
No. of Shares |
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Oriflamme Investment Limited, Mautitius |
46616403 |
|
Oriflamme Kosmetika BV, Gotnweg |
10 |
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Total |
46616413 |
AS ON 28.09.2011
|
Equity Shares
Break Up |
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 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
The Company is engaged in the business of selling beauty products. |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
Not Available |
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Bankers : |
Not Available |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
B S R and Company Chartered Accountant |
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Address : |
Building No.10, 8th Floor, Tower B, |
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Tel. No.: |
91-124-2549191 |
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Fax No.: |
91-124-2549101 |
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Pan No.: |
AAAFB9852F |
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Ultimate Holding Company : |
Oriflamme Cosmetic S. A., Luxemburg |
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Holding Company : |
Oriflamme Investments Limited, Mauritius |
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Fellow Subsidiaries : |
·
Oriflame Cosmetics Thailand Limited ·
Oriflame Vietnam Company Limited ·
Oriflame Management Asia Limited ·
Oriflame Cosmetics AB ·
PT OrindoAlam AYU ·
Stella IVY Cosmetics Company Limited ·
Oriflame Cosmetic (China) Company Limited ·
Oriflame Software s.r.o. ·
Oriflame Lanka Pvt. Limited ·
Oriflame Persia LLC ·
Oriflame Mangolia XXK ·
Oriflame Lativa SIA ·
Oriflame KozmetikUrunleri TIC. LTD.
STI. ·
Silver Oak Laboratories Private
Limited, India CIN No.: U24247DL1996PTC075891 |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
50000000 |
Equity Shares |
Rs.10/- each |
Rs. 500.000 Millions |
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Issued Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
46616413 |
Equity Shares |
Rs.10/- each |
Rs. 466.164
Millions |
|
|
|
|
|
Note:
[Of the above,
46,616,403 (Previous year 46,616,403) equity shares are held by Oriflame Investments
Limited, Mauritius, and 10 (Previous year 10) equity shares are held by
Oriflame Kosmetik, B.V., subsidiaries of Oriflame Cosmetics S.A., Luxemburg,
the ultimate holding company]
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
466.164 |
466.164 |
466.164 |
|
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
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3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
(141.241) |
(226.353) |
(417.442) |
|
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NETWORTH |
324.923 |
239.811 |
48.722 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
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2] Unsecured Loans |
110.000 |
0.000 |
54.239 |
|
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TOTAL BORROWING |
110.000 |
0.000 |
54.239 |
|
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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|
|
|
|
|
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TOTAL |
434.923 |
239.811 |
102.961 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
102.199 |
70.198 |
67.097 |
|
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Capital work-in-progress |
12.376 |
0.000 |
0.000 |
|
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|
|
|
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
66.805 |
43.393 |
0.000 |
|
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|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
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Inventories |
821.660
|
515.590 |
428.005 |
|
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Sundry Debtors |
43.938
|
41.146 |
47.069 |
|
|
Cash & Bank Balances |
46.831
|
106.627 |
20.788 |
|
|
Other Current Assets |
0.108
|
0.000 |
0.000 |
|
|
Loans & Advances |
228.861
|
119.488 |
93.737 |
|
Total
Current Assets |
1141.398
|
782.851 |
589.599 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
800.661
|
570.590 |
495.893 |
|
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Other Current Liabilities |
70.347
|
62.070 |
43.980 |
|
|
Provisions |
16.847
|
23.971 |
13.862 |
|
Total
Current Liabilities |
887.855
|
656.631 |
553.735 |
|
|
Net Current Assets |
253.543
|
126.220 |
35.864 |
|
|
|
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|
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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TOTAL |
434.923 |
239.811 |
102.961 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
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SALES |
|
|
|
|
|
|
|
|
NA |
1923.649 |
1349.780 |
|
|
|
Renewal Fees |
|
3.219 |
2.091 |
|
|
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Other Income |
|
37.495 |
7.848 |
|
|
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TOTAL (A) |
NA |
1964.363 |
1359.719 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Goods Sold |
|
988.106 |
691.786 |
|
|
|
Operating Expenses |
|
228.285 |
196.912 |
|
|
|
Personnel Expenses |
|
128.014 |
116.593 |
|
|
|
Selling Expenses |
|
317.790 |
259.558 |
|
|
|
Printing and Starter Kit Cost |
|
108.097 |
82.375 |
|
|
|
TOTAL (B) |
NA |
1770.292 |
1347.224 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
134.258 |
194.071 |
12.495 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
14.914 |
10.634 |
19.368 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
119.344 |
183.437 |
(6.873) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
34.232 |
26.313 |
23.354 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
85.112 |
157.124 |
(30.227) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
(33.967) |
8.004 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
85.112 |
191.091 |
(38.231) |
|
|
|
|
|
|
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|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
(417.442) |
(379.211) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED TO
THE B/S |
NA |
(226.351) |
(417.442) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Sales of Goods |
2.484 |
6.008 |
0.377 |
|
|
TOTAL EARNINGS |
2.484 |
6.008 |
0.377 |
|
|
|
|
|
|
|
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IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
32.484 |
NA |
NA |
|
|
TOTAL IMPORTS |
32.484 |
NA |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
1.83 |
4.10 |
(0.93) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
NA
|
9.73 |
(2.81) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
NA
|
8.17 |
(2.24) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.50
|
17.53 |
(4.60) |
|
|
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|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.26
|
0.66 |
(0.62) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.07
|
2.74 |
12.48 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.29
|
1.19 |
1.06 |
LOCAL AGENCY FURTHER INFORMATION
Note: The registered
office has been shifted from 1st Floor, Piccadily House, 275, Capt
Gaur Marg, Sriniwaspuri, New Delhi, India to the present address w.e.f.
22.11.2007.
BACKGROUND
The Company is
engaged in the business of selling beauty products. The Company was
incorporated in 1994. The Company is a fully owned subsidiary of Oriflame
Investments Limited, Mauritius and the ultimate holding company is Oriflame
Cosmetics S.A., Luxemburg.
Following a
resolution at the Board of Directors meeting approving to do so, the Company
has filed a Scheme of Arrangement with the Honorable Delhi High Court for
merger of Silver Oak Laboratories Private Limited (a fellow subsidiary) with
the Company with effect from 1 April 2011. Approval from the Honorable Delhi
High Court is currently pending. The merger, if approved and effective, would
involve transfer of asset and liabilities of Silver Oak Laboratories Private
Limited at book value to the Company.
OPERATIONS
Due to various
strategic measures undertaking by the Company in the previous and current year,
net sales during the year registered an increase by 20.23% over the previous
year 2010.
FUTURE OUTLOOK
The year 2011 will
be specifically focused on strengthening and development of Consultants base in
order to accomplish higher sales level per consultant through scientifically
designed Director Development program comprising of the following:
· To increase sales
volumes by progressive recruitment and increasing the sales force
· Focus more on
training of sale force.
· Better control
over margins and pricing mechanism
· Monthly meeting
and regular follow up meeting
· Better service
levels at competitive cost to the consultants.
· Increase
Oriflame “reach’ to enhance the Consultant/customer base in place other than
Oriflame branches by way of Consultants Service point and other distribution
options.
· Debt control,
network identification and focus.
· Commitments to
target.
CONTINGENT LIABILITIES (AS ON 31.03.2011)
a) The Company has
received a claim from third party amounting to Rs. 11.855 Millions (previous
year Rs. 11.855 Millions) in regard to loss suffered by the third party due to
confiscation of goods by custom authorities. Based on advice from its lawyers,
the Company believes that the claim is not tenable and that the settlement will
be made in the favor of the Company.
b) The Company has
received demands of Rs. 18.444 Millions (previous year Rs.18.317 Millions) from
Sales Tax Authorities in respect of dispute relating to computation of taxable
turnover and submission of sales tax forms. During the year, Company has
deposited Rs.8.500 Millions (previous year Rs. Nil) under protest and given the
bank guarantee of Rs. 8.336 Millions (previous year Rs. Nil) to Sales Tax
Authorities in respect of dispute relating to computation of taxable turnover.
The Company has filed an appeal against these demands and currently the matter
is subjudice.
FIXED ASSETS
·
Plant and Machinery
·
Office Equipments
·
Furniture and Fixtures
·
Computers
WEB SITE DETAILS
HISTORY
Founded in 1967 by two brothers and their friend, Subject is now an international beauty
company selling direct in more than 60 countries worldwide. Its wide portfolio
of Swedish, natural, innovative beauty products are marketed through a sales
force of approximately 3.6 million independent consultants that are marketing their products around the globe.
Subject offers the
leading business opportunity for people who want to start making money
from day one and work towards fulfilling their personal dreams and
ambitions through its unique business concept - Make Money Today and Fulfil The
Dreams Tomorrow™.
Respect for people and nature underlie the
company’s operating principles and are reflected in its social and
environmental policies. Subject supports numerous charities worldwide
and is a Co-founder of the World Childhood Foundation. Subject Cosmetics is listed on the Nasdaq OMX
Nordic Exchange.
Brief facts
• 1.5 billion Euros in annual sales
• Approx. 3.6 million Consultants
• 8000 employees
• 1000 products annually
• Co-founder of World Childhood Foundation.
• Global R and D Centre with more than 100
scientists
• 5 own production units in Sweden, Poland,
China, Russia and India
• Listed on the OMX Nordic Exchange since
March 2004
• Products based on natural ingredients, never
tested on animals
• Operations in more than 60 countries of
which 13 franchisees
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. 51.43 |
|
|
1 |
Rs. 79.10 |
|
Euro |
1 |
Rs. 66.17 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
-- |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
30 |
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.