The government presented the capital amnesty bill

The Russian government submitted to the State Duma the capital amnesty bill. According to the bill, it will be possible to declare any property in tax bodies, including property rights, monetary assets and securities.

The business community is proposed to legalize all the assets and to disclose the holding structure through the controlled foreign company (CFC) law. The force of the law will guide to the entrepreneurs, having more than a 10% stake in the controlled foreign company, not being a tax resident of RF. At the same time, if the businessman is a major shareholder and the profit of the company exceeds RUB 50 million, he is bound to pay the profit tax.

The President has already signed the CFC law in November 2014; still it would be possible to amnesty the released from the offshore capitals only after the adoption of the amnesty law. Initially, it was proposed to apply the notice concerning the withdrawal from the offshore till April 1st. However the term was extended till June 15th at the request of the Ministry of Finance. It is suggested to file the declaration till December 31st.

At first the business community hoped for the longer terms of going through the procedure. Thus in the beginning the issue was about a period no longer than 2 years.

It is important that the capital amnesty bill make provisions for strict norms of the provided data privacy. The authorities not once underlined that one of the amnesty’s goals is to make the legalization procedure transparent and safe. It is said that those citizens who decided to choose this procedure should be guaranteed against criminal and tax prosecution. For this purpose all the given information will be under the tax secrecy regime.

For the first time the President announced about the capital amnesty during the annual address to the Federal Assembly in the end of 2014. The authorities expect that the corresponding measure will not only help to improve the investment climate, but also to replenish the budget.

Return on equity of companies, producing household chemistry

Information agency Credinform prepared a ranking of companies, manufacturing household chemistry: cleaning products and washing means.

The companies with the highest volume of revenue were selected for the ranking according to the data from the Statistical Register for the latest available period (for the year 2013). These enterprises were ranked by decrease in return on equity.

Return on equity (%) is the relation of company’s net profit to its equity capital. It shows how many monetary units of net profit were earned by each unit invested by company owners. It allows to determine the effectiveness of use of the capital invested by the owners.

There are no recommended or specified values prescribed for the mentioned ratio, because its values vary strongly depending on the branch, where each concrete enterprise conducts business.

For getting of the most comprehensive and fair picture of the financial standing of an enterprise it is necessary to pay attention not only to average values of profit, but also to all available combination of financial data.

Table 1. Revenues, return on equity and solvency index of the largest enterprises, producing household chemistry (TOP-10)
NameRegionRevenues, in mln RUB, for 2013Return on equity, %Solvency index GLOBAS-i®
1 Henkel Rus LLC
INN 7702691545
Moscow 45 668,8 57,0 186 the highest
2 Tyanshi LLC
INN 7702745423
Moscow 1 997,8 41,0 249 high
3 Stupinsky Khimichesky zavod CJSC
INN 5045022211
Moscow region 1 542,6 29,7 155 the highest
4 Rekitt Benkizer LLC
INN 7705495411
Moscow 12 901,6 25,6 213 high
5 Zavod sintanolov LLC
INN 5260123469
Nizhnii Novgorod region 3 917,6 20,4 197 the highest
INN 5404105343
Novosibirsk region 1 885,3 20,3 155 the highest
7 Aist CJSC
INN 7830001596
Saint-Petersburg 2 534,1 13,5 215 high
8 Nefis Cosmetiks OJSC
INN 1653005126
Republic of Tatarstan 9 970,0 5,2 247 high
9 Procter and Gamble – Novomoskovsk LLC
INN 7101006354
Tula region 24 842,3 4,1 195 the highest
10 Kompaniya Klever LLC
INN 7730633418
Moscow 2 706,9 0,8 307 satisfactory

companies, manufacturing household chemistry

Picture 1. Return on equity and revenues of the largest companies, producing household chemistry (TOP-10)

The revenues of the largest Russian manufacturers of cleaning products and washing means (TOP-10) made 108,0 bln RUB, according to the latest published annual financial statement, that gives about 81% of the market in monetary terms. Cumulative turnover of enterprises of the TOP-10 list increased by 4,1% to the previous year.

The average return on equity is 21,8% (according to the TOP-10 list). All market leaders have positive value of the ratio, this points to the fact that companies of the rating have net profit.

Henkel Rus LLC showed the highest value of the return on equity (57%); the enterprise is the largest manufacture of household chemistry on annual revenue in the country.
Henkel dominates as well in consumer, as in industrial sector due to such known brands as Persil, Schwarzkopf and Loctite. The company works in three business-lines: Laundry & Home Care, Beauty Care and Adhesive Technologies.

According to the independent estimation of the Information agency Credinform, nine from ten participants of the TOP-10 list got high and the highest solvency index, this points to that the enterprises can pay off their debts in time and fully, while risk of default is minimal.

«Kompaniya Klever LLC» has satisfactory solvency index, that signals to a potential investor that it is necessary to attract supplementary guarantees on purposes of credit granting and business cooperation.