A Swiss Fragrance Leader Achieves 360° Financial Visibility and Efficiency Post-Merger with Quinnox’s Consolidated Reporting Platform

Client overview

Client is a private Swiss company in the fragrance and flavour business. It is the largest privately-owned company in the field and comes under top 3 worldwide.

Business need

Client had two separate legal entities for its operations in India, which mandated separate accounts with separate banks for transactions related to their collections and payments. The client had to maintain two sets of audit books and go through tedious and time consuming audit exercises with multiple authorities. Our client also had to perform separate tax calculation activities for each entity and reports such as financial statements, trial balances etc. had to be sent to multiple authorities. Hence, the client decided to merge the company codes to have a centralized collection and payment process through a single bank.

Solution

Quinnox set up an Information Service (IS) team that consisted of domain and technology experts (Finance, O2C and ABAP) for this Merger Implementation Project. Quinnox did a passive merger of both the entities using our proprietary processes, and created a Financials 360 that provides the management consolidated financial reports with a 360 –degree view of the company health. The entities were merged into one with a new Company Identification Number (CIN) generated for the merged entity. Quinnox team did a detailed analysis across people, operations, systems and technologies of the as-is process and conducted multiple requirement gathering sessions with the business stakeholders to understand the requirements for the to-be process to be implemented for the merger. Since the client was using SAP as their CRM, major changes were to be configured within SAP to merge both the entities and developed financial reports with consolidated financial details (Consolidated Trial Balance, Consolidated financial statements, stock transfer report), and made changes in the various forms and the Data Medium Exchange formats (files sent to the bank for remitting payments).

Business Benefits Delivered Across SLA, BLA, and XLA Dimensions 

Service Level Agreement (SLA) Benefits  

• Reduction in bank account service fees, transaction charges, and capital costs associated with minimum deposits and cash forecasting.
• Reduced number of resources needed to manage operations for both entities—lowering manual overhead.
• Reduced fees and costs related to statutory audits and redundant minimum taxes.

Business Level Agreement (BLA) Benefits 

• 66% annual tax savings through optimized profit tax calculation across merged affiliates.
• Improved business operations with centralized control, boosting scalability and long-term cost efficiency.
• Effective control of finances via a centralized collection/payment mechanism and unified banking structure.

Experience Level Agreement (XLA) Benefits 

• 360-degree financial visibility for senior management via real-time dashboards and reports. 
• Faster financial insights through consolidated, real-time reporting, enhancing decision-making experience.