MIRA
INFORM REPORT
|
Report Date : |
02.04.2008 |
IDENTIFICATION
DETAILS
|
Name : |
LOVSON EXPORTS LIMITED |
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Registered Office : |
98 Bajaj Bhavan, Nariman Point, Mumbai - 400021,
Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
06.01.1987 |
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Com. Reg. No.: |
11-42095 |
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CIN No.: [Company
Identification No.] |
U51505MH1987PLC042095 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUML01988A |
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Legal Form : |
A closely held public limited liability company |
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Line of Business : |
To carry on the business of exports, imports traders to deal whether as wholesalers or retailers or as agents in the following products :- All types of electrical machinery equipments, instruments,
appliance and spares, electrical wires, cables generators, sets and spares
and components. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
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 320000 |
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Status : |
Good |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having satisfactory track. Directors are reported as experienced, respectable and resourceful businessmen. Their trade relations are fair. Payments are correct and as per commitments. The company can be considered good for any normal business dealings. It can be regarded as a promising business on a medium to long-run |
LOCATIONS
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Registered Office : |
98 Bajaj Bhavan, Nariman Point, Mumbai - 400021,
Maharashtra, India |
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Tel. No.: |
91 22
22024071- (Ext 103, 101) /22021918 |
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Fax No.: |
91-22-22045488
/56360830/22027355 |
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E-Mail : |
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Website : |
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Area : |
Owned |
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Branch Office : |
B/901, Safal Pegasus, 100 ft. Anand Nagar Road Prahlad
Nagar, Ahmedabad - 380051 Gujarat, India |
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Tel. No.: |
91-79-40209898 |
DIRECTORS
|
Name : |
Mr. Bharatlal Gulabchand Shah |
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Designation : |
Director |
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Address : |
27, CCI Chambers, Dinshaw Watcha Road, Churchgate, Mumbai – 400020 |
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Date of Birth/Age : |
01/01/1937 |
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Date of Appointment : |
06/01/1987 |
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Name : |
Mr. Parimal Bharatlal Shah |
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Designation : |
Director |
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Address : |
27, CCI Chambers, Dinshaw Watcha Road, Churchgate, Mumbai – 400020 |
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Date of Birth/Age : |
22/01/1964 |
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Date of Appointment : |
06/02/1992 |
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Name : |
Mr. Jinesh B. Shah |
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Designation : |
Director |
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Address : |
27, CCI Chambers, Dinshaw Watcha Road, Churchgate, Mumbai – 400020 |
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Date of Birth/Age : |
08/06/1966 |
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Date of Appointment : |
06/02/1992 |
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Name : |
Ms. Hansa B. Shah |
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Designation : |
Director |
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Address : |
27, CCI Chambers, D. W. Road, Mumbai - 400020 |
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Date of Birth/Age : |
02/10/1944 |
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Date of Appointment : |
01/01/1998 |
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Name : |
Ms. Aarti J. Shah |
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Designation : |
Director |
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Address : |
27, CCI Chambers, D. W. Road, Mumbai – 400020 |
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Date of Birth/Age : |
20/06/1969 |
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Date of Appointment : |
01/01/1998 |
KEY EXECUTIVES
|
Name : |
Mukesh N. Shah and Associates |
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Designation : |
Company Secretary |
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Address : |
Mumbai – 400002 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
AS ON 30.09.2005
|
Names of Shareholders |
|
No. of Shares |
|
Bharat G. Shah |
|
930400 |
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Mr. Parimal B. Shah |
|
313900 |
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Mr. Jinesh B. Shah |
|
313800 |
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Ms. Hansa B. Shah |
|
100 |
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Ms. Pooja P. Shah |
|
93400 |
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Ms. Aarti J. Shah |
|
93399 |
|
Gul Son’s Investment Private Limited |
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1 |
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Total |
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1745000 |
AS ON 30.09.2007
|
Equity Share
Breakup |
|
Percentage of
Holding |
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Category |
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Directors or relatives of directors |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
To carry on the business of exports, imports traders to deal whether as wholesalers or retailers or as agents in the following products :- All types of electrical machinery equipments, instruments,
appliance and spares, electrical wires, cables generators, sets and spares
and components. |
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Brand Names : |
“Bajaj”, “Kal” and “Deseil Autoricshaw” |
GENERAL
INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
25 |
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Bankers : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
C. M. Gabhanalal and Company Chartered Accountants |
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Address : |
42, Namit Niwas, 30, Dr. D. D. Sathe Marg, Girgaoun,
Mumbai –400004 |
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Tel. No.: |
91-22-23823923 |
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Associates/Subsidiaries : |
Gulsons Investments Private Limited Lovson Enterprises Private Limited U45990MH1980PTC023624 |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5000000 |
Equity Shares |
Rs 10/- each |
Rs. 50.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1745000 |
Equity Shares |
Rs. 10/- each |
Rs. 17.450 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
17.450 |
17.450 |
17.450 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
63.435 |
64.208 |
57.527 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
80.885 |
81.658 |
74.977 |
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LOAN FUNDS |
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1] Secured Loans |
26.375 |
33.110 |
34.558 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.840 |
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TOTAL BORROWING |
26.375 |
33.110 |
35.398 |
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DEFERRED TAX LIABILITIES |
3.655 |
0.739 |
2.661 |
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TOTAL |
110.915 |
115.507 |
113.036 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
16.575 |
19.704 |
24.122 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
12.307 |
10.311 |
5.809 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
4.560
|
14.074 |
3.333 |
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Sundry Debtors |
8.598
|
7.082 |
8.062 |
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Cash & Bank Balances |
67.811
|
63.594 |
65.192 |
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Other Current Assets |
0.494
|
3.981 |
0.000 |
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Loans & Advances |
30.549
|
30.107 |
33.054 |
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Total
Current Assets |
112.012
|
118.838 |
109.641 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
23.273
|
27.640 |
21.571 |
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Provisions |
6.706
|
5.706 |
4.965 |
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Total
Current Liabilities |
29.979
|
33.346 |
26.536 |
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Net Current Assets |
82.033
|
85.492 |
83.105 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
110.915 |
115.507 |
113.036 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
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Sales Turnover |
160.667 |
134.475 |
183.990 |
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Other Income |
16.496 |
15.344 |
13.112 |
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Total Income |
177.163 |
149.819 |
197.102 |
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Profit/(Loss) Before Tax |
2.584 |
5.717 |
9.450 |
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Provision for Taxation |
2.915 |
1.921 |
[3.472] |
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Profit/(Loss) After Tax |
[0.331] |
3.796 |
12.922 |
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Expenditures : |
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Raw Material Consumed |
139.972 |
111.694 |
153.738 |
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Salaries, Wages, Bonus, etc. |
2.722 |
2.521 |
1.537 |
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Managerial Remuneration |
1.873 |
1.651 |
1.130 |
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Payment to Auditors |
0.045 |
0.039 |
0.028 |
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Interest |
0.054 |
0.103 |
1.381 |
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Insurance Expenses |
1.314 |
1.274 |
1.495 |
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Power & Fuel |
0.254 |
0.269 |
0.297 |
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Depreciation & Amortization |
4.013 |
5.201 |
0.615 |
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Other Expenditure |
24.334 |
21.351 |
27.434 |
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Total Expenditure |
174.581 |
144.103 |
187.655 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total
Income |
(%) |
[0.19]
|
2.53 |
6.56 |
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Net Profit Margin (PBT/Sales) |
(%) |
1.61
|
4.25 |
5.14 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
2.01
|
4.13 |
7.06 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.03
|
0.07 |
0.13 |
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Debt Equity Ratio (Total Liability/Networth) |
|
0.70
|
0.81 |
0.83 |
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Current Ratio (Current Asset/Current Liability) |
|
3.74
|
3.56 |
4.13 |
LOCAL AGENCY
FURTHER INFORMATION
Bankers Charges
Report as per Registry
|
Name of the company |
LOVSON EXPORTS
LIMITED |
|
Presented By |
Bank of India,
Kalbadevi Branch, Princess Street, Bombay – 400002 |
|
1) Date and description of instrument creating the change |
Principal
Agreement of Hypothecation of stock dated 07.01.1994, executed by the company
in favour of Bank of India, Kalbadevi Branch
|
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 30.000
Millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Hypothecation ad
charge in favour of Bank of India, all tangible movable assets in particular
stock of engineering goods and other commodities such as soya meal, rubber,
rice, tea etc lying at J B Ware House, Byculla, Bombay Jamnagar, Rajkot or at
Godown or wherever so situated. |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
First charge by
way of hypothecation of assets described in column No. 3 as and or at any
time be in possession or power of the company to secure facility of export
packing credit hypothecation of stock of Rs. 30 millions carrying interest at
1 % OBR min 13 % p.a. with quarterly rest and such other rate as may be
notified by the bank from time to time to the company with power to the Bank
to seize and relies. |
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5) Name and Address and description of the person entitled to the charge. |
Bank of India, Kalbadevi Branch, Round Building, S. G.
Marg, Mumbai – 400002 |
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6) Date and brief description of instrument modifying the charge |
NA |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
NA |
FIXED ASSETS
- Office Premises
- Plant and Machinery
- Motor Car
- Computer
The company is certified by ISO 9001 : 2000.
AS PER WEBSITE
Around 1857, one LOVCHAND AMARCHAND decided to leave the comfort of his
home country India, and travel forth to explore the opportunities overseas. He
chose Sudan as his base and started his activities from port of "Suakin
". He was probably the first Indian to set foot in Sudan – AFRICA
As his business flourished, he became popular and the locals affectionately
started calling him "LOVSON" , it is from this, that our company’s
NAME has been derived. Lovchand Amarchand was the grandfather of our current
Chairman - Bharatlal Gulabchand Shah.
The times in Africa were changing post World War II, and the new independent
countries were experimenting with various forms of governments which resulted
in turmoil and unstable regimes. Bharat Gulabchand Shah thought it wise to
return to INDIA. He migrated with his immediate family to Rajkot in 1968 to
start Lovson group's first business in India.
Post independence, INDIA too was trying to modernise at a much faster pace and
was undergoing an industrial revolution. Sensing an opportunity here, Bharatlal
Gulabchand Shah set up a unit to assemble and export the Slow speed
"Lister" - England type engines. Soon it occurred to him that in the
fast expanding Global market it would make more business sense to outsource the
assembly and concentrate on marketing, brand building and quality control, this
lead him to take a decision which was quite ahead of his time and he hived off
the assembly unit and formed a strategic partnership with an Engine assembling
unit and started Exporting the engines under LOVSON brand, as outsourcing
helped him to reduce costs and pass on the benefits to customers. The
profitability improved and business expanded by leaps and bounds and soon Lovson
Engines were being exported to many African and south east Asian countries.
The clientele he created were mostly importers who were interested in not just
engines but other products too, and since their requirements were many and
varied, LOVSON which was exporting just one product became a multi-product co.
very soon
The company was recognised by the Government of India as an Export House in the
year 1977 and since then hasn't looked backed. Over the years Lovson has grown,
by entering into strategic alliances and partnerships with manufacturers and
producers in various fields. LOVSON has experienced professionals on the team
who operate in tandem with various agencies as one stop shop for best products
& services from India.
Products
Vehicles
Tractors
Motorcycles and Scooter
Three Wheeled Vehicles
Diesel Engines
Air Cooled Diesel Engines
Lister Type Slow Speed Diesel Engines
Peter Type - SH Series Engines
SHD & DN Series Double Cylinder Engines
SK/SKA Series Engines
Slow Speed "Little Giant" Engines
Pumps
Centrifugal Pumps
Monoblocks
Hand Pumps
Gensets
Valves
Flanges
Forgings
Closed Die Forging
Open Die Forging
Castings
Sand Casting Steel
Sand Casting Cast Iron
Invetsment Casting
Pressure Die Casting
Sintering
Sheet Metal Components
Machining Facility
Services
Injections
Presses Moulds
Paper to
CAD conversions
Plastic
Packaging
Jute
Packaging
General Merchandise
Match
Boxes
Weighing
Scales
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
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.39.97 |
|
UK Pound |
1 |
Rs.79.53 |
|
Euro |
1 |
Rs.63.09 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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. |
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 |
|