MIRA
INFORM REPORT
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Report Date : |
14.09.2007 |
IDENTIFICATION DETAILS
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Name : |
LALJEE GODHOO AND COMPANY |
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Registered Office : |
213, Samuel Street, 1st Floor, Masjid Bunder (West), Mumbai
– 400 003, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
1894 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUML04908B |
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PAN No.: [Permanent
Account No.] |
AAAFL0484F |
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Legal Form : |
Partnership concern with an Unlimited Liability of Partners. |
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Line of Business : |
Manufacturer of Compounded Asafoetida Powder and lumps. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 80000 |
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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 a well – established and reputed concern having
satisfactory track. Partners are reported as experienced and respectable businessmen.
Trade relations are fair. Business is active. Payments are usually correct
and as per commitments. The concern can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
213, Samuel Street, 1st Floor, Masjid Bunder (West), Mumbai
– 400 003, |
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Tel. No.: |
91-22-66350692 |
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Mobile No.: |
91-9821216416 |
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Fax No.: |
91-22-23401742 |
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E-Mail : |
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Website : |
www.lghing.com |
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Area : |
2000 sq.fts |
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Location : |
Owned |
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Factory : |
Plot No. 53/4 Road 7/15, MIDC, Marol,
Andheri (East), Mumbai – 400 093 |
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Tel. No.: |
91-2 300014 / 8210631 |
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Area : |
12000 sq.fts |
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Location : |
Owned |
PARTNERS
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Name : |
Mr. Nalin Merchant |
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Designation : |
Partner |
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Date of Birth/Age : |
71 Years |
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Experience : |
50 Years |
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Name : |
Mr. Bimal Merchant |
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Designation : |
Partner |
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Name : |
Mr. Aroon Vahalia |
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Designation : |
Partner |
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Date of Birth/Age : |
60 Years |
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Qualification : |
Post Graduate |
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Name : |
Mr. Karna Vahalia |
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Designation : |
Partner |
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Date of Birth/Age : |
30 Years |
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Qualification : |
B. Com Graduate |
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Name : |
Pallav Bhatt |
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Designation : |
Partner |
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Name : |
Ms. Jyoti Merchant |
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Designation : |
Partner |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Compounded Asafoetida Powder and lumps. |
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Products : |
Food Guar Gum Guar Gum Powder Guar Gum Spices Guar Gum Cake Asafetida Compounded Asafoetida (Hing) Blended Asafoetida. |
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Brand Names : |
“LG” |
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Exports : |
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Products : |
All Products |
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Countries : |
South – |
GENERAL INFORMATION
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Customers : |
Wholesalers, Retailers |
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No. of Employees : |
71 ( 22 in Office and 51 in Factory) |
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Bankers : |
·
HSBC Bank Address: Fort ·
Bank of Address: Mandvi Branch |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
J G Dalal and Company Chartered accountants |
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Tel. No.: |
91-9820129989 |
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Associates/Subsidiaries : |
·
N D Thakkar and Sons Address: Nashik, Line of Business: Manufacturer of Compounded Asafoetida Powder and
lumps. ·
L.D Products division Address: 212, Ranj Mahal |
CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs. 20.000 millions |
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Borrowed : |
-- |
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Total : |
Rs.20.000 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
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Particulars |
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31.03.2007 |
31.03.2006 |
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Sales Turnover |
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650.000 |
600.000 |
Expected Sales (2007-08) : Rs. 700.000 millions
LOCAL AGENCY FURTHER INFORMATION
WEBSITE DETAILS:
Indian cuisines are known all over the world for tangy tastes and variety. Spices have formed an integral part of Indian meals for centuries, lending their wonderful taste and flavor to the food. In addition, spices are known for their therapeutic and medicinal properties.
Since inception, they at Laljee Godhoo and Co., are the leading manufacturers
and exporters of quality products like LG brand compounded Asafoetida and Gaur
Gum and derivatives.
They observe high quality standards during the manufacturing and packing of
their products. They get their products from the leading suppliers and farms.
Their sound infrastructure coupled with a talented team of technicians and
workers assist them to manufacture food products commensurate to international
standards. They lay special emphasis on the packaging of their products so they
reach their destination in the best condition without losing their nutrition,
taste, texture and aroma.
Products
They are the manufacturer, supplier and exporter of Indian Cooking Spices and Spices Derivatives. They offer a range of spices and food products in both domestic and international markets. Their product includes:
Food Guar Gum
Guar Gum Powder
Guar Gum Spices
Guar Gum Cake
Asafetida
Compounded Asafoetida (Hing)
Blended Asafoetida.
Quality
They lay special emphasis on the quality of their products. The commitment of their personnel in production, packaging, quality and other departments ensure high quality products to all their clients.
Their quality managers supervise each stage of production and packaging to
check the freshness and quality of their products. They follow international
standards for quality to produce adulterate free products that are fit for
consumption.
Infrastructure
The company has state-of-the-art infrastructure. The unit underwent modernization in view of substantial increase in plant and machinery, making the unit equipped with state-of-the-art grinding plant, automatic box packing machines and FFS pouch filling machines cool grinding process.
They carry out the production process with the unified efforts of their
personnel in production, processing, packaging, quality, marketing and research
department. With all these facilities, they are able to supply quality products
worldwide to their valued clients.
Manpower
They have a team of dedicated and competent personnel in
different departments to carry out the production process. They share a vision
of meeting client's expectations due to their vast experience and knowledge in
production, packaging in the spices and food products industry. Thereby, they
are able to deliver quality products in the time specified by their clients.
Packaging
They take utmost care to package their products in finest
quality and laminated pouches. Their products are available in the packing of
50 gm,100 gm, 200 gm and 500 gm. They understand the importance of packing for
keeping the end products fresh and healthy. Thereby, they adopt best sealing
technology to ensure the freshness and flavour of their products intact. The
complete packaging process is carried out under stringent quality control
measures to maintain the hygienic conditions.
Commitment That
Drives Them
Delivery of quality products and achieving of customer
satisfaction are the predominant commitments as well as driving force of their
company. Since inception, they have an ongoing obligation to manufacture
products in compliance to guidelines of varied business ethics and as per set
industry norms.
Clients
They are renowned globally due to the high quality and affordable prices of their products. They have garnered huge clientèle from major food industrial units due to their continuous quest to develop quality products.
Subject is a company that has been an integral part of the majority of the Indian households for over a century, is the one that has been behind the much desired extra taste in all the dishes through the LG brand compounded asafoetida. They are a well-known manufacturer and exporter of asafoetida that has been always known for enhancing flavor and have great medical properties too. The company was established in 1894 and over the years, their brand name 'LG' has become a household name for their rich quality spices. Presently, they are managed by entrepreneurs belonging to three generations who have a rich and vivid experience in the industry. The company is supervised by a management team who are a blend of rich experience, sharp business acumen, professionalism and vitality. They are an undisputed market leader in compounded asafoetida, enjoying nearly 70% of the market share.
Laljee Godhoo and Co. blends and compounds asafoetida and sells it all over the world under the brand name 'LG'. They are one of the oldest brands in the industry engaged as a manufacturer and exporter of quality products. They supply asafoetida in two forms, i.e. lump and powder. For nearly ninety years, LG was marketed only in lump form, but now it is also available in powder form in plastic and packed in paper cartons. LG compounded asafoetida is supplied in retail packs of 100 gms, 200 gms and 500 gms. In certain parts of the country, it is also available in 50 gms pack.
Infrastructure
Their production facility is located at Andheri, Mumbai, and they also have
a business associate at
Marketing Network
Their sales outlet at Mumbai caters to the export market and western, northern, eastern and central Indian market. They have two branches in Tamil Nadu that cater to the entire Southern Indian market. Besides, they have a wide network of over one thousand stockists, depot agents and distributors spread across the country, who reaches to every nook and corner of the industry.
Potential
They have been a highly responsible corporate citizen in the
country as they have maintained a congenial working environment in their
production house. As a result, they have a very high level of commitment from
their workers and employees to the company. A few of the leading stockists of
the company have been second and third generation stockists of LG, having
cemented a close business relation with the company over the years. They have
instituted, over fifteen years ago, an award to be given every year to the most
outstanding young scientist of the Central Food Research Technological
Institute,
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.40.44 |
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1 |
Rs.82.01 |
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Euro |
1 |
Rs.56.20 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
9 |
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PAID-UP CAPITAL |
1~10 |
7 |
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OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
8 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
8 |
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--LEVERAGE |
1~10 |
8 |
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--RESERVES |
1~10 |
7 |
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--CREDIT LINES |
1~10 |
7 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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65 |
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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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