MIRA
INFORM REPORT
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Report Date : |
02.07.2007 |
IDENTIFICATION DETAILS
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Name : |
LAWKIM
PRIVATE LIMITED |
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Registered Office : |
Pirojsha
Nagar, Lal Bahadur Shastri Marg, Vikhroli, Mumbai - 400 079, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
16.07.1960 |
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Com. Reg. No.: |
11-11759 |
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CIN No.: [Company
Identification No.] |
U74999MH1960PLC011759 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUML03822A |
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Legal Form : |
Private Limited
Liability Company |
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Line of Business : |
The
company is engaged in to carry on the business of manufacturing, buying, selling,
reselling, exchanging, entering, importing, exporting, improving, assembling,
distributing, hiring on hire purchase system or otherwise of dealing in
electric machines and equipments and goods and accessories and any other
allied things including electric motors, dynamos, generators, switch gears,
instruments, appliances, apparatus electric wirings and installations,
electric accessories, etc. All kinds, electric power, cables and accessories
etc. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 600000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is
controlled by Godrej Group, a well known and highly respectable industrial
house. The company continues
to incur substantial losses in recent year. However it’s financial position
still remains strong. Trade relations are fair. Payments are always correct
and as per commitments. The company can
be considered good for any normal business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered
Office : |
Pirojshanagar,
Lal Bahadur Shastri Marg, Vikhroli, Mumbai - 400 079, |
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Tel. No.: |
91-22-25961700 |
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Fax No.: |
91-22-25961516 |
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E-Mail : |
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Website : |
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Corporate
Office : |
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Tel. No.: |
91-22
25893333, 34,35,36,37,38,39 |
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Fax No.: |
91-22
25893030, 3367 |
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E-Mail : |
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Factory 1 : |
Ø
Chitalsar, Manpada, Ø
Village, Mohamadpur, P. O. Kherki Daula, Gurgaon 122001, Ø
Gat 431, Village Shindewadi, Taluka Khandala, District Satara, Ø
S. No. 260/1, Building No. 2, Ankur Industrial Estate, |
DIRECTORS
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Name : |
Mr. Jamshyd
Naoroji Godrej |
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Designation : |
Director |
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Address : |
The Three, 40-D, |
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Date of
Birth/Age : |
21.01.1949 |
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Election
Commission Card No. : |
MT/04/024/099982 |
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Date of
Appointment : |
21.02.1977 |
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Name : |
Mr.
Vijay M. Chrishna |
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Designation : |
Managing
Director |
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Address : |
A-261,
Grand Paradi Apartment, Off August Kranti Marg,Mumbai 400026, |
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Date of
Birth/Age : |
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Qualification
: |
B A
(Hons) |
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Experience : |
41
years |
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Date of
Appointment : |
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Election
Commission Card No. : |
MT/04/024/009615 |
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Name : |
Mr.
Saleem. A. Ahmadullah |
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Designation : |
Director |
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Address : |
52
Jupitor, I |
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Date of
Birth/Age : |
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Date of
Appointment : |
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Election
Commission Card No. : |
MT/04/024/354699 |
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Name : |
Mr.
Narayan. C. Gawankar |
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Designation : |
Director |
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Address : |
302,
Royal Accord, 3rd Floor, 14, |
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Date of
Birth/Age : |
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Date of
Appointment : |
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Election
Commission Card No. : |
MT/07/032/337065 |
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Name : |
Mr.
Homi P. Daruwalla |
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Designation : |
Director |
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Address : |
Mumbai-400026,
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Date of
Birth/Age : |
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Date of Appointment
: |
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Election
Commission Card No. : |
MT/04/024/105580 |
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Name : |
Mr.
Xercsis K. Marker |
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Designation : |
Company
Secretary |
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Address : |
E-48,
Jerbai Wadi Baug, |
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Date of Birth/Age
: |
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Date of
Appointment : |
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Election
Commission Card No. : |
MT/05/025/114014 |
KEY EXECUTIVES
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Name : |
Mr. Nilesh G Shah |
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Designation : |
Company Secretary |
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Address : |
404/B, Poonam Nagar, Off. |
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Tel No.: |
91-22-28394421/ 28203582 |
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Fax: |
91-22-28207824 |
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E-Mail: |
MAJOR SHAREHOLDERS
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Names of Shareholders |
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No. of Shares |
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Mr.
Jamshyd N. Godrej Mrs.
Pheroza J. Godrej |
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48 |
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Mr.
Freyan V. Crishna Mrs.
Smita Vijay Crishna |
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2258 |
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Mrs.
Smita Vijay Crishna Mr.
Nyrika V. Crishna |
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2259 |
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Mr.
Nadir B.Godrej Mr. Rati
N. Godrej |
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12050 |
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Mr.
Parmeshwar A. Godrej Mr.
Ardeshir B. Godrej |
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7528 |
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Mr.
Jamshed N. Godrej Mr.
Rishad K. Naoraji |
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1505 |
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Mr.
Pheroza J. Godrej Mr.
Jamshed N. Godrej |
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2236 |
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Mr.
Vijay M. Crishna Mrs.
Smita V. Crishna |
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7532 |
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Tanya A Dubash Mr.
Parmeshwar A. Godrej |
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3036 |
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Mr.
Ardeshir B. Godrej Mr.
Parmeshwar A. Godrej |
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1508 |
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Mr. Jamshyd
Naoroji Godrej Mr. Naoroji
Jamshyd Godrej |
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2240 |
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Mr.
Rishad K. Naoraji Mr. Jamshyd
Naoroji Godrej Mr. Ardeshir
B. Godrej |
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12050 |
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Mrs.
Smita V. Crishna Mr.
Vijay M. Crishna |
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4500 |
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Mr.
Parmeshwar A. Godrej Mr.
Ardeshir B. Godrej |
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1506 |
BUSINESS DETAILS
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Line of Business : |
The company
is engaged in to carry on the business of manufacturing, buying, selling,
reselling, exchanging, entering, importing, exporting, improving, assembling,
distributing, hiring on hire purchase system or otherwise of dealing in
electric machines and equipments and goods and accessories and any other
allied things including electric motors, dynamos, generators, switch gears,
instruments, appliances, apparatus electric wirings and installations,
electric accessories, etc. All kinds, electric power, cables and accessories
etc. |
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Products : |
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Exports : |
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Countries : |
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Imports : |
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Countries : |
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PRODUCTION STATUS
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Particulars |
Unit |
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Installed
Capacity |
Actual
Production |
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Specialised
Motors & Parts of Electric Motors |
Nos. |
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1500000 |
201882 |
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3
Phase Motors (1HP-10HP) |
Nos. |
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20000 |
707 |
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Exhaust
and Blower Fans |
Nos. |
|
7200 |
-- |
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Specialised
Tollings |
Nos |
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-- |
25 |
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Pump
sets |
Nos. |
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-- |
1527 |
GENERAL INFORMATION
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Suppliers : |
Ø
Ameya
Sales Ø
Murangabad
Motor Manufactures Ø
Geeta
Enterprises Ø
Harness
Techniques private Limited Ø
Id
Technologies Ø
Inaylak
Tooling Company Ø
Ishaan
Engineering Ø
Jaihind
Tjread Works Ø
Megna
Industries Ø
Mahashakti
Engineering Ø
Nitin
Pressing Ø
Rane
and Sons Ø
Supriya
Engineering Company Ø
Kamal
Enterprises |
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Customers : |
Ø
Godrej- GE Appliances Limited Ø
Statomat Special Machines India Private Limited Ø
Carrier Ø
Frizair Ø
Ø
Whirlpool Ø
IBM Ø
Air Ø
Bajaj Auto Limited Ø
Hughes Telecom Ø
Matsushita, Home Appliance Company |
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No. of Employees : |
3000 |
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Bankers : |
Union Bank of Industrial
Finance Branch, Mumbai Union Bank of Thane (W) Branch,
Thane Union Bank of Shrimant
Malojiraje Co-operative Bank Satara District
Central Co-operative Bank |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Kalyaniwalla
and Mistry Chartered
Accountants |
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Address : |
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Memberships : |
Confederation
of Indian Industry |
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Associates/Subsidiaries : |
Ø
Godrej and Boyce Manufacturing Company Limited Ø
Godrej Soaps Limited Ø
Godrej ( Ø
Godrej ( Ø
Godrej GE Appliances Private Limited Ø
Godrej Upstream Limited Ø
Godrej Appliances Limited Ø
Cartini India Limited Ø
Prashant Metal Forming Industries Private Limited Ø
Statomat Special Machines India Private Limited Ø
Sentinel Foods Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
75000 |
Equity
Shares |
Rs. 100/- each |
Rs. 7.500 millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
63921 |
Equity
Shares |
Rs. 100/- each |
Rs. 6.392 millions |
|
60264 |
Equity
Shares |
Rs. 100/- each |
Rs. 6.026 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS
FUNDS |
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1] Share Capital |
6.029 |
6.026 |
6.026 |
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2] Share
Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves &
Surplus |
61.939 |
140.410 |
223.761 |
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4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
|
67.965 |
146.436 |
229.787 |
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LOAN FUNDS |
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1] Secured Loans |
127.974 |
135.573 |
27.292 |
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2] Unsecured
Loans |
217.774 |
232.534 |
233.839 |
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TOTAL BORROWING
|
345.748 |
368.107 |
261.131 |
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DEFERRED TAX
LIABILITIES |
0.000 |
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TOTAL
|
413.713 |
514.543 |
490.918 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
178.886 |
199.667 |
159.317 |
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Capital work-in-progress
|
0.880 |
0.000 |
0.000 |
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INVESTMENT
|
152.922 |
159.586 |
170.027 |
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DEFERREX TAX ASSETS
|
0.000 |
0.000 |
35.018 |
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CURRENT ASSETS, LOANS &
ADVANCES
|
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Inventories
|
56.551
|
75.498 |
66.316
|
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Sundry Debtors
|
111.077
|
85.412 |
110.258
|
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Cash & Bank Balances
|
12.019
|
5.121 |
11.079
|
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Other Current Assets
|
0.906
|
1.789 |
0.836
|
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Loans & Advances
|
154.767
|
156.423 |
155.799
|
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Total Current Assets
|
335.320 |
344.288
|
324.243 |
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Less :
CURRENT LIABILITIES & PROVISIONS
|
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Current Liabilities
|
138.397
|
99.055 |
89.868
|
|
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Provisions
|
115.898
|
98.632 |
99.130
|
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Total Current Liabilities
|
254.295 |
188.998
|
197.687 |
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Net Current Assets
|
81.025 |
155.290
|
126.556 |
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MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
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TOTAL
|
413.713 |
514.543 |
490.919 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
479.223 |
430.708 |
336.966 |
|
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Profit/(Loss) Before Tax |
(76.253) |
(48.081) |
(47.023) |
|
Provision for Taxation |
(2.219) |
35.268 |
(21.572) |
|
Profit/(Loss) After Tax |
(78.472) |
(83.350) |
(25.451) |
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Import Value |
3.839 |
2.441 |
6.783 |
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Total Expenditure |
477.689 |
481.394 |
391.966 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
(16.37) |
(19.35)
|
(7.55) |
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Net Profit Margin (PBT/Sales) |
(%) |
(15.91) |
(11.16)
|
(13.95) |
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Return on Total Assets (PBT/Total Assets} |
(%) |
(11.41) |
(8.84)
|
(9.72) |
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Return on Investment (ROI) (PBT/Networth) |
|
(1.12) |
(.33)
|
(0.20) |
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Debt Equity Ratio (Total Liability/Networth) |
|
8.83 |
3.80
|
1.99 |
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Current Ratio (Current Asset/Current Liability) |
|
1.32 |
1.82
|
1.64 |
LOCAL AGENCY FURTHER INFORMATION
The company intends
to start new business of an IATA
accredited travel agency. This agency would enable the company to extend
its service offerings in the travel vertical to tracel agencies for their back
office tasks like ticketing relating fulfillment fare management, travel
supplier management Immediately and exploring tourism management and other
travel service in the medium to long run.
The ticketing
agency would be recognized by IATA/UFTAA which would enable the company to
target International / Domestic comparator and Leisure traveler. The travel
agency business would also create saving opportunities by catering to internal
travel needs.
The year under
consideration was challenging for the company. Sales in the Motors Business
grew beyond 20 % but unprecedented increase in the major raw materials for
motors steel and copper adversely affected margins while intense competition
reduced price realization teams across the business however launched major initiatives focusing on operational
improvements and cost control measures were achieves, the initiates were
successful in helping to neutralize the
adverse impacts of the rise in raw materials costs and lower price
realization.
In the IT Enabled
Services, the domestic cell centre operation
have been restructured to drive for delivering high quality in services
rendered to all the customer. These are expected to raise not only customer
satisfaction but also the brand image in the market to enable us to drive for
higher levels of business to amazing the
investments already made in technology and connectivity.
On the
international front, significant efforts have been made through Godrej Upstream
Limited to turn around the company’s US acquisition Upstream LLC new partners
were brought on board during the year who
have restricted the US operations and the contracts that Upstream had
with is major customers to reduce losses. The improved
HISTORY
Lawkim was
started in 1963 with the blessings of high technology from Emerson Electric of
USA (a fortune 500 company), one of the worlds largest & most reputed motor
manufacturers. It was taken over by the Godrej group in 1977 and today is the
market leader in the manufacture of specialized motors, supplying to clients
like Godrej, Electrolux, Carrier,
Our extremely
modern plant at Shirwal near Pune is capable to churning out 2 million motors a
year & is the envy of the industry. With Mr. Vijay Crishna as CEO, the
company has achieved an impressive annual turnover of Rs.1000 million and is
one of the first four Indian companies to attain the prestigious ISO
9001:2000(E) certification.
Lawkim
Hermetic Motors power the hearts of Godrej, Carrier & Voltas (Refrigerator
& Air conditioner) Compressors which in such a large measure add to your
comfort levels.
Our performance testing cum endurance laboratory occupying an area
of 4500 sq. ft at Lawkim’s Thane facility goes far beyond the baseline
standards laid down by various product certification agencies. Lawkim motors
have already received
Incorporated
in 1960, subject was the first company in
With
Mr. Vijay Crishna as Chief Executive
Officer, subject has achieved an impressive annual turnover of Rs. 1000
millions and is one of the first four Indian companies to attain the
prestigious ISO 9001:2000(E) certification.
In
1992, it set up a highly advanced motor manufacturing plant at Shindewadi
(50Kms from Pune) and a small motor manufacturing plant at Dadra.
Milestones
|
Year |
|
|
1960 |
Established
subject for manufacturing Electrical Motors |
|
1964 |
1st
manufacturing facility set up at Thane |
|
1967 |
Technical
collaboration with US Emerson Electrical Company |
|
1977 |
Godrej
acquired subject |
|
1992 |
A
highly advanced motor manufacturing plant setup at Shindewadi |
|
1997 |
2nd
manufacturing plant setup at Dadra |
|
2001 |
Diversified
into IT Enabled Services Lites |
|
2002 |
|
Profile
Subject
has been the largest name in the supply of specialized custom built compressor
motors since early sixties. It was setup in technical collaboration with Emerson
Electric, a giant
Subject
is a leading manufacturer of General Purpose Motors, Hermetic Motors and other
fractional horsepower motors. It supplies to all Leading Air Conditioning,
Washing Machines and OEMss. It has UL approved motors in its range. Subject has
a wide range of motors ranging from 7 watts (0.009 HP) to 2250 watts (3 HP) in
single –phase designs and upto 1500 watts (2 HP) in three phase designs.
Subject is one of the First ISO-9001:2000 and also an ISO:14000 certifies
company in
In
addition, subject has certain product lines that has UL (underwriter’s
Laboratories U.S.A. ) certification.
Products
After
it was acquired by Godrej, whose name is synonymous in
Subject
has developed its own designing
capability, both for motors as well as flexible manufacturing set ups, has
invested in the latest automatic and semi-automatic machines. It also designs
and manufacturers its own special tooling for its mass production lines and was
one of the first ISO 9000:2000 (E) and ISO 14000 certified companies in
The
companies fixed assets of important value include freehold land, building, plant
and machinery, furniture and fixture and vehicles.
|
Mr. VM Crishna |
Mr. XK Marker |
|
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|
Mr
Abhay M. Pendse |
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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.40.81 |
|
|
1 |
Rs.81.57 |
|
Euro |
1 |
Rs.54.91 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
48 |
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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|