MIRA INFORM REPORT

 

 

Report Date :

15.05.2012

 

IDENTIFICATION DETAILS

 

Name :

GODREJ AND BOYCE MANUFACTURING COMPANY LIMITED

 

 

Registered Office :

Pirojsha nagar, Vikhroli, Mumbai – 400 079, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

03.03.1932

 

 

Com. Reg. No.:

11-001828

 

 

Capital Investment / Paid-up Capital :

Rs.66.291 Millions

 

 

CIN No.:

[Company Identification No.]

U28993MH1932PLC001828

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMG06742B

MUMG05774G

 

 

PAN No.:

[Permanent Account No.]

AAACG1395D

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturing and Marketing of Consumer Durables, Office Equipments and Industrial Products.

 

 

No. of Employees :

10000 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (67)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

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

 

 

Maximum Credit Limit :

USD 59000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and a reputed Godrej group company having fine track. It is reported that Mr. J N Godrej, chairman of the board of directors  and the managing directors of the company was conferred the “Padma Bhushan” award in recognition of his distinguished service of high order to the nation in the field of trade and economic activity.

 

Financial position of the company appears to be sound. Trade relations are reported as fair. Directors are reported to be experienced and respectable businessmen. Payments are regular and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

NOTES:

 

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INFORMATION PARTED BY

 

Name :

Mr. Chandran

Designation :

Finance Manager

Contact No.:

91-9545553955

Date :

12.05.2012

 

 

LOCATIONS

 

Registered Office/ Factory 1 :

Pirojsha Nagar, Vikhroli, Mumbai - 400 079, Maharashtra, India

Tel. No.:

91-22-67961300/ 67965106/ 67965656-5959

Mobile No.;

91-9545553955 (Mr. V.V.V. Shivdas)

Fax No.:

91-22-67961518/ 67961509

E-Mail :

info@godrej.com

mumbaibr@godrej.com

kap@godrej.com

Website :

www.godrej.com

www.new.godrej.com

 

 

Factory  2 :

Apollo Square Building, Plot No. 60, Sahaney Sujan Park, Lullanagar, Pune - 411 040, Maharashtra, India

 

 

Branch Office :

Located at:

 

·         Mumbai

·         Ahmedabad

·         Bangalore

·         Bhopal

·         Bhubaneshwar

·         Kolkata

·         Chandigarh

·         Kochi

·         Coimbatore

·         Faridabad

·         Ghaziabad

·         Guwahati

·         Hyderabad

·         Indore

·         Jabalpur

·         Jaipur

·         Jamshedpur

·         Kanpur

·         Lucknow

·         Chennai

·         New Delhi

·         Patna

·         Pune

·         Rajkot

·         Surat

·         Trivandrum

·         Vishakhapatnam

 

 

DIRECTORS

 

AS ON 12.09.2011

 

Name :

Mr. Jamshyd N. Godrej

Designation :

Chairman and Managing Director

Date of Birth/Age :

24.01.1949

Address :

40-D, B.G. Khar Marg, Mumbai - 400 006, Maharashtra, India

Date of Appointment :

07.10.1974

DIN No.:

00076250

 

 

Name :

Mr. Kavas N. Petigara

Designation :

Director

Date of Birth/Age :

10.07.1948

Address :

801, Citadel, 18-B, Ruparel Marg, Maharashtra, Mumbai – 400 006, Maharashtra, India

Date of Appointment :

29.09.1988

DIN No.:

00066162

 

 

Name :

Mr. Adi Burjor Godrej

Designation :

Director

Date of Birth/Age :

03.04.1942

Address :

Godrej House, 67H, Walkeshwar Road, Opposite Birla Public School, Mumbai – 400 006, Maharashtra, India

Date of Appointment :

30.04.1973

DIN No.:

00065964

 

 

Name :

Mr. Nadir B. Godrej

Designation :

Director

Address :

40-D, B.G. Kher Marg, Malabar Hill, Mumbai – 400 006, Maharashtra, India

Date of Birth/Age :

26.08.1951

Date of Appointment :

27.09.1990

DIN No.:

00066195

 

 

Name :

Mr. Vijay M. Crishna

Designation :

Director

Address :

A-261, Grand parade Apts. Off August Kranti Marg, Mumbai – 400026, Maharashtra, India.

Date of Birth/Age :

08.03.1945

Date of Appointment :

27.09.1990

DIN No.:

00066267

 

 

Name :

Mr. Fali P. Sarkari

Designation :

Director

Address :

Sethna Bhabha Bldg., 3rd Floor, Banaji Fire Temple Compound, Mumbai – 400002, Maharashtra, India.

Date of Birth/Age :

29.02.1932

Date of Appointment :

13.01.1998

DIN No.:

00066085

 

 

Name :

Mr. Navroze Jamshyd Godrej

Designation :

Whole Time Director

Date of Birth/Age :

10.06.1982

Address :

40-D, B.G. Khar Marg, Malabar Hill, Mumbai – 400 006, Maharashtra, India

Date of Appointment :

01.05.2010

DIN No.:

03049821

 

 

Name :

Mr. Phiroze D. Lam

Designation :

Executive Director and President

Address :

21/23 Mistry Park, 77 B Desai Road, Mumbai – 400 036, Maharashtra, India

Date of Birth/Age :

06.03.1945

Date of Appointment :

01.10.2003

DIN No.:

00066218

 

 

Name :

Mr. Kyamas A. Palia

Designation :

Executive Director (Finance)

Address :

7C, Wadia Street, Tardeo, Mumbai – 400 034, Maharashtra, India

Date of Birth/Age : 

22.11.1945

Date of Appointment :

01.10.2003

DIN No.:

00281971

 

 

Name :

Mr. Pradeep P. Shah

Designation :

Director

Address :

72-A, Embassy Apartments, 46 Napean Sea Road, Mumbai – 400 006, Maharashtra, India

Date of Birth/Age : 

07.01.1953

Date of Appointment :

10.08.2004

DIN No.:

00066242

 

 

Name :

Mrs. Anita Ramchandran

Designation :

Additional Director

Address :

13 Navroze Apartments, Bhulabhai Desai Road, Mumbai – 400 026, Maharashtra, India

Date of Birth/Age : 

28.04.1955

Date of Appointment :

28.04.2007

DIN No.:

00118188

 

 

Name :

Mr. Anil Kumar Verma

Designation :

Whole time Director

Address :

902-B, Fantasia, Raheja garden, LBS Road, Thane – 400 604, Maharashtra, India

Date of Birth/Age : 

22.06.1957

Date of Appointment :

01.10.2008

DIN No.:

02366334

 

 

KEY EXECUTIVES

 

Name :

Mr. Chandran

Designation :

Finance Manager

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 12.09.2011

 

Names of Shareholders

 

 

No. of Shares

 

 

 

Adi Barjorji Godrej

 

32240

Parmeshwar Adi Godrej jointholder with Adi Barjorji Godrej

 

4506

Tanya Arvind Dubash jointholder with Adi Barjorji Godrej

 

9609

Nisaba Adi Godrej jointholder with Adi Barjorji Godrej

 

9609

Pirojsha Adi Godrej jointholder with Adi Barjorji Godrej

 

2976

Nadir Barjorji Godrej

 

65540

Rishad Kaikhushru Naoroji jointholder with Adi Barjorji Godrej

 

16385

Rishad Kaikhushru Naoroji jointholder with Jamshyd Naoraji Godrej

 

16385

Rishad Kaikhushru Naoroji jointholder with Nadir Barjorji Godrej

 

16385

Rishad Kaikhushru Naoroji jointholder with Smita Vijay Crishna

 

16385

Aspi Framroze Golawala

 

157500

 

AS ON 12.09.2011

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Bodies corporate

 

26.77

Directors or relatives of directors

 

49.47

Other top fifty shareholders

 

23.76

 

 

 

Total

 

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing and Marketing of Consumer Durables, Office Equipments and Industrial Products.

 

 

Products :

Item Code No. (ITC Code)

940310.01

Product Description

Steel Furniture for Offices

 

 

Item Code No. (ITC Code)

841821.00

Product Description

Household Furniture

 

 

Item Code No. (ITC Code)

830300.00

Product Description

Safes, Safe Deposit Lockers and other Security Equipments

 

 

Terms :

 

Selling :

L/C, Cash and Credit

 

 

Purchasing :

L/C, Cash and Credit

 

PRODUCTION STATUS [AS ON 31.03.2011]

 

PARTICULARS

Unit

Installed Capacity

Actual production

 

 

 

 

Steel Furniture

Tonnes

60000

49476

Security Equipment

Tonnes

21000

14353

Typewriters

Nos.

 40000

--

Locks

Nos.

4740000

1199377

Home Appliances

Nos.

2100000

1396395

Furniture and Fixtures [primarily of metal]

Nos.

1050000

248719

Press Tools, Jigs, Fixtures, Gauges, Dies, Cutting Tools, etc.

Rs. ‘000

1000000

1508920

Process Plant and Equipment

Rs. ‘000

4000000

3579752

Forklift Trucks

Nos.

2400

2234

Electric Motors

Nos.

1520000

73950

Ready Mix Concrete

M3

334500

219412

 

NOTES:

 

1. Installed Capacity is as certified by the Management and accepted by the Auditors.

 

2. Unless otherwise stated, actual production is inclusive of quantities used internally.

 

3. For Electric Motors (item 10 above), Actual Production does not include production of motor parts/components and production on job work basis.

 

4. The production of Typewriters has been discontinued since October 2009.

 

5. The production of Furniture and Fixtures (primarily of metal) in a new industrial undertaking set up by the Company, commenced from 17th November 2009.

 

6. Figures in brackets pertain to the previous year.

 


 

GENERAL INFORMATION

 

Customers :

Wholesalers and Retailers

 

 

No. of Employees :

10000 (Approximately)

 

 

Bankers :

·         Central Bank of India, 1st Floor, Mumbai Main Office Building, Fort, Mumbai – 400 023, Maharashtra, India

·         Union Bank of India, Mumbai – 400 021, Maharashtra, India

·         Citibank N.A., 293, Dr. D.N. Road, Mumbai – 400 001, Maharashtra, India

·         BNP Paribas, Mumbai – 400 001, Maharashtra, India

·         Standard Chartered Bank

·         Grindlays Bank Limited

·         State Bank of Patiala, Mumbai -  400 021, Maharashtra, India

·         Axis Bank Limited, Mumbai – 400 001, Maharashtra, India

·         The Hong Kong and Shanghai Banking Corporation Limited, Mumbai – 400 001, Maharashtra, India

·         ICICI Bank Limited, Mumbai – 400 021, Maharashtra, India

·         Export-Import Bank of India, Centre One Building, Floor 21, World Trade Centre Complex, Cuffe parade, Mumbai – 400 005, Maharashtra, India

 

 

Facilities :

Secured Loan

As on 31.03.2011

[Rs. in Millions]

As on 31.03.2010

[Rs. in Millions]

Rupee term loans banks secured

854.900

700.000

Rupee term loans financial institutions secured

0.000

40.000

Working capital loans banks secured

6787.181

1756.000

Total

7642.081

2496.000

 

·         Working Capital Facilities from Banks (Net) and Balances with Banks on Cash Credit Accounts (Net) include Rs.2101.612 millions (as at 31-3-2010: Rs.150.309 millions) due and payable in foreign currency.

 

·         Export Credits from Export-Import Bank of India are denominated in rupees

Unsecured Loan

As on 31.03.2011

[Rs. in Millions]

As on 31.03.2010

[Rs. in Millions]

Fixed deposits unsecured

1552.141

1515.240

Deposits related parties unsecured

3.300

3.500

Deferred sales tax loan unsecured

664.309

708.918

Other debt unsecured

0.232

0.282

Total

2219.982

2227.940

 

NOTES:.

 

·         Loans guaranteed by a directors Rs.0.232 million (as at 31.03.2010 Rs.0.282 million) were due for repayment, but were not claimed by the depositors on due dates.

 

·         Maximum amount raised at any time during the year by way of issue of commercial paper (unsecured Negotiable Usance Promissory Notes) Rs.1500.000 millions by earmarking of designated working capital facilities from banks. No commercial paper was outstanding at the year end.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Kalyaniwala and Mistry

Chartered Accountants

Address :

Maneckji Wadia Building, 127, Mahatma Gandhi Road, Mumbai – 400 023, Maharashtra, India

 

 

Joint Venture:

Godrej Efacec Automation and Robotics Limited

 

 

Associates:

·         Godrej and Khimji (Middle East) LLC (Incorporated in Oman)

·         LVD Godrej Infotech NV (Incorporated in Belgium)

·         ABG Venture LLP

·         NBG Enterprise LLP

·         SVC Enterprise LLP

 

 

Subsidiaries :

·         Godrej Industries Limited

Address: Pirojshanagar, Eastern Express Highway, Vikhroli, Mumbai – 400079, Maharashtra, India

Tel No.: 91-22-25188010/ 25188020/ 25188030

Fax No.: 91-22-25188074

      CIN : L24241MH1988PLC097781

 

·         Godrej Infotech Limited

      CIN : U32100MH1997PLC106135

 

·         Wadala Commodities Limited

      CIN : L15142MP1984PLC002382

 

·         Godrej Malaysia Sdn. Bhd, (Incorporated in Malaysia) (w.e.f 28th July, 2010, the company holds 100% of its equity share capital)

·         Godrej Singapore Pte. Limited (Incorporated in Singapore)

·         Veromatic International BV (Incorporated in the Netherlands)

 

 

Enterprises over which the company’s chairman and managing directors, Mr. J.N. Godrej, is able to exercise significant influence:

·         Geometric Limited

·         Godrej and Boyce Enterprises LLP

·         JNG Enterprise LLP

·         RKN Enterprise LLP

 

 

Step-Subsidiaries (Where the company’s subsidiaries listed in a above, hold more than 50% of equity share capital):

G and B Enterprises (Mauritius) Private Limited (Incorporated in Mauritius on 17th December, 2010) [A Wholly owned subsidiary of Godrej Malaysia Sdn. Bhd.]

 

 

Subsidiaries of Veromatic International BV:

·         Veromatic Services BV (incorporated in the Netherlands)

·         Water Wonder Benelux BV (incorporated in the Netherlands)

 

 

Subsidiaries and Sub-subsidiaries of Godrej Industries Limited (GIL):

·         Natures Basket Limited

·         Ensemble Holdings and Finance Limited

·         Godrej International Limited (Incorporated in the Isle of Man)

·         Godrej Agrovet Limited (GAVL)

·         Godrej Properties Limited (GPL)

 

 

Subsidiaries of GAVL:

·         Golden Feed Products Limited

·         Godrej Oil Palm Limited

·         Cauvery Palm Oil Limited

·         Godrej Gokarna Oil Palm Limited [Formerly Godrej IJM Palm Oil Limited] [A Subsidiary w.e.f 24th November, 2010]

 

 

Subsidiaries of GPL:

·         Godrej Realty Private Limited

·         Godrej Waterside Properties Private Limited

·         Godrej Developers Private Limited

·         Godrej Real Estate Private Limited

·         Godrej Sea View Properties Private Limited

·         Godrej Estate Developers Private Limited

·         Happy Highrises Limited

·         Godrej Buildwell Private Limited (A Subsidiary w.e.f. 14th January, 2011)

·         Godrej Projects Developments Private Limited (A Subsidiary w.e.f 22nd  November, 2010)

·         Godrej Buildcon Private Limited (A Subsidiary w.e.f. 21st September, 2010)

·         Godrej Premium Builders Private Limited (A Subsidiary w.e.f. 18th February, 2011)

·         Godrej Garden City Properties Private Limited (A Subsidiary w.e.f 18th February, 2011)

·         Udhay GK Realty Private Limited (A Subsidiary w.e.f. 7th March, 2011)

 

Note: During the year, Godrej Gold Coin Aquafeed Limited, which became a subsidiary of Godrej Agrovet Limited, w.e.f. 21st October, 2010, has merged with Godrej Agrovet Limited w.e.f. 5th January, 2011, and hence has ceased to be its subsidiary.

 

During the financial year commencing from 1st April, 2011, Godrej Seeds and Genetics Limited has become a subsidiary of Godrej Agrovet Limited, w.e.f. 6th June, 2011.

 

 

 

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1100000

Equity Shares 

Rs.100/- each

Rs.110.000 Millions

900000

Cumulative Redeemable Preference Shares 

Rs 100/- each

Rs.90.000 Millions

 

 

 

 

 

Total

 

 

Rs.200.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

662910

Equity Shares 

Rs.100/- each

Rs.66.291 Millions

 

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2011

31.03.2010

31.03.2009

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

66.291

66.291

66.291

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

14776.334

11735.435

9031.134

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

14842.625

11801.726

9097.425

LOAN FUNDS

 

 

 

1] Secured Loans

7642.081

2496.000

4370.726

2] Unsecured Loans

2219.982

2227.940

1733.653

TOTAL BORROWING

9862.063

4723.940

6104.379

DEFERRED TAX LIABILITIES

432.581

517.981

585.581

 

 

 

 

TOTAL

25137.269

17043.647

15787.385

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

8480.693

5542.948

5571.876

Capital work-in-progress

1476.679

2470.410

952.547

 

 

 

 

INVESTMENT

4713.078

4575.577

3089.199

DEFERRED TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

12258.944

9059.687

8256.278

 

Sundry Debtors

12894.622

8384.506

7603.463

 

Cash & Bank Balances

60.040

490.603

33.234

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances

3437.888

2108.648

3298.425

Total Current Assets

28651.494
20043.444
19191.400

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

10248.265

8137.674

5787.031

 

Other Current Liabilities

6571.003

6206.843

6334.248

 

Provisions

1365.407

1244.215

896.358

Total Current Liabilities

18184.675
15588.732
13017.637

Net Current Assets

10466.819
4454.712
6173.763

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

25137.269

17043.647

15787.385

 

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

54911.148

43621.790

40351.778

 

 

Other Income

1271.833

1057.627

1123.661

 

 

Compensation received on surrender of tenancy rights

10.000

0.000

0.000

 

 

Profit on sale of investment (net)

4.758

62.711

440.713

 

 

Profit on sale/ transfer/ disposal of fixed assets (net)

11.136

3.686

(2.982)

 

 

TOTAL                                     (A)

56208.875

44745.814

41913.170

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Raw material consumed and goods purchased

36634.935

26642.812

25150.222

 

 

Employee remuneration and benefits

6306.491

5705.024

4638.199

 

 

Voluntary retirement compensation

2.116

51.607

9.547

 

 

Other expenses

9877.176

7935.968

7856.605

 

 

Property development and construction expenses

196.503

286.729

259.641

 

 

Increase/ Decrease in stocks of finished goods and work in progress

(2523.971)

(1110.306)

20.930

 

 

Expenditure transferred to capital account

(413.270)

(505.085)

(322.589)

 

 

TOTAL                                     (B)

50079.980

39006.749

37612.555

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

6128.895

5739.065

4300.615

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

626.515

525.657

840.944

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

5502.380

5213.408

3459.671

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

581.902

536.602

501.069

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

4920.478

4676.806

2958.602

 

 

 

 

 

Less

TAX                                                                  (H)

930.725

1314.267

544.221

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

3989.753

3362.539

2414.381

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

7557.312

5193.010

3448.203

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

473.263

340.000

244.000

 

 

Proposed Dividend

795.492

596.619

397.746

 

 

Tax on Dividend

80.099

61.618

27.828

 

BALANCE CARRIED TO THE B/S

10198.211

7557.312

5193.010

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

FOB Value of Export

4257.555

3741.509

4846.242

 

 

Dividend

2.637

2.198

2.036

 

 

Royalty

0.000

3.356

4.055

 

 

Others

203.325

78.780

116.722

 

TOTAL EARNINGS

4463.517

3825.843

4969.055

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

3019.755

2416.418

3441.002

 

 

Stores & Spares

70.824

40.086

99.513

 

 

Capital Goods

943.267

218.876

300.494

 

 

Others

4814.465

2858.659

3048.466

 

TOTAL IMPORTS

8848.311

5534.039

6889.475

 

 

 

 

 

 

Earnings Per Share (Rs.)

6019.00

5072.00

3642.00

 

Particulars

 

 

 

31.03.2012

Sales Turnover

 

 

58000.000

 

 

 

 

 

Expected Sales (2012-13): Rs.61000.000 Millions

 

The above information has been parted by Mr. Chandran – Finance Manager

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)

7.10

7.51

5.76

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

8.96

10.72

7.33

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

13.25

18.27

10.27

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.33

0.40

0.33

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

1.89

1.72

2.10

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.57

1.29

1.47

 

LOCAL AGENCY FURTHER INFORMATION

 

DETAILS OF SUNDRY CREDITORS

 

Particulars

31.03.2011

31.03.2010

31.03.2009

Sundry Creditors

 

 

 

Creditors due small micro enterprises

424.021

257.795

89.373

Creditors due others

9824.244

7879.879

5697.658

TOTAL

10248.265

8137.674

5787.031

 

Check List by Info Agents

Available in Report (Yes / No)

1) Year of Establishment

Yes

2) Locality of the firm

Yes

3) Constitutions of the firm

Yes

4) Premises details

No

5) Type of Business

Yes

6) Line of Business•

Yes

7) Promoter’s background

--

8) No. of employees

Yes

9) Name of person contacted

Yes

10) Designation of contact person

Yes

11) Turnover of firm for last three years

Yes

12) Profitability for last three years

Yes

13) Reasons for variation <> 20%

--

14) Estimation for coming financial year

Yes

15) Capital in the business

Yes

16) Details of sister concerns

Yes

17) Major suppliers

No

18) Major customers

No

19) Payments terms

Yes

20) Export / Import details (if applicable)

No

21) Market information

--

22) Litigations that the firm / promoter

--

23) Banking Details

Yes

24) Banking facility details

Yes

25) Conduct of the banking account

--

26) Buyer visit details

--

27) Financials, if provided

Yes

28) Incorporation details, if applicable

Yes

29) Last accounts filed at ROC

Yes

30) Major Shareholders, if available

Yes

 

 

History:

 

The company was incorporated on 3rd March, 1932 at Mumbai in Maharashtra having company Registration Number 1828.

 

The Company celebrated its centenary in 1997. In 1897 a young man named Ardeshir Godrej gave up law and turned to lock-making. Ardeshir went on to make safes and security equipment of the highest order, and then stunned the world by creating toilet soap from vegetable oil. His brother Pirojsha Godrej carried Ardeshir's dream forward, leading Godrej towards becoming a vibrant, multi-business enterprise. Pirojsha laid the foundation for the sprawling industrial garden township (ISO 14001- certified) now called Pirojshanagar in the suburbs of Mumbai. Godrej touches the lives of millions of Indians every day. To them, it is a symbol of enduring ideals in a changing world.

 

In company, on the other hand, the Construction Department made it a point from the very beginning to adapt practices which prevent pollution, and that is why Vikhroli, unlike the city which it adjoins, remains clean and green. The Construction Department had to conserve water and other resources, use raw material having less adverse environmental impacts, conserve and enhance green cover, and continue to create environmental awareness among their employees, sub-contractors, vendors and the community around, in pursuance of the environmental Policy laid down by the management: ' They at Godrej are committed to profitable growth in the business through sustainable development and continual improvement in the environmental performance.'

 

The further steps of the company took towards control of pollution make their synonymous with clean and sound environmental practices. The late Nozer A. Lentin, who has a member Secretary (Retired.) to Maharashtra Pollution Control Board, was appointed in 1980 to conduct a survey of legal and technical problems likely to be faced regarding treatment and disposal of effluents. In 1982, a Manager (Environment and Pollution Control) was appointed to attend to the day-to-day work related to environment and pollution control. Data of effluents from the industrial plants was an alysed and a feasibility report was prepared. Later, in 1983, an Effluent Treatment Plant (ETP) was established with Associated Industrial Consultants. An ETP with a capacity of 1,200 cubic metres was commissioned in 1986. In 1987, electroplating effluents were segregated and treated separately in a plant having the capacity of 200 cubic metres per day.

 

The first Tertiary Sewage Treatment and Recycling Plant was commissioned 1989 and second as recently as in 1996. At present, 100 cubic metres per day as sewage waste are being treated for re-use in industrial plants and gardens. In 1995 AIC Watson were appointed to carry out a detailed study of all aspects of solid waste management in the Godrej industrial premises. Suggestions in a comprehensive report submitted in January 1997 are in the process of being implemented. Paint waste, which has been a major source of hazardous wastes, was sent for test incineration to M/s. Bayers Limited. A procedure has been put in place to incinerate the paint sludge and to dispose of the ash generated. A secured landfill for hazardous wastes has been constructed.

 

Finally, in 1995 the management decided to appraise all the Divisional Heads and Managers about the Environmental Management System and Environment Audit. Mr. K.P. Nyati, Head of the Environment Management Division, Confederation of Indian Industry, was invented to give a presentation to them. Further follow-up was done to initiate action on the Environment Management System and adoption of ISO-14001 standards throughout the Company.

 

Naval emphasized upon quality for the department, by which each of the structures would provide satisfactory services for about 100 years. He made it clearly known that an initial fault in the concept of design or workmanship would involve heavy costs at a later date, which had to be avoided. In this way, by having in-house facilities and capabilities, the Construction Department not only achieved economy, but also quality and reliably, unlike the construction industry in the country, which is becoming a matter of grave concern. Naval had envisaged from the beginning that the Construction Department would not only undertake new projects for construction at Vikhroli, but would also be responsible for its maintenance.

 

Baria's appointment in 1948 was followed by H.N. Engineer's in 1949. The foundation work of Plant-I was then in progress and work on the construction of plant-II had also started. Engineer became the departmental head in 1996 and continued in that capacity till 1971. He was ably assisted by Edul Postwalla. Engineer was followed by Bomi Sethna, who with his twenty years' experience, having joined Godrej in 1951, took over as departmental head in 1971 and continued till 1986. It was then Engineer's son Maneck's turn to take over, and deservedly too, for he had been in the service of the Company for twenty-two years since 1964 and continues to head the Department in the capacity of Vice-President to this day.

 

Progress in construction was slow, but steady. Naval's habit of adopting a system for everything he did and expecting his workers to follow, was very much in evidence in the construction of manufacturing plants, housing and the Udayachal schools. After the construction of plant-I and II, construction of other plants was taken up every second year. By the year 1990, when Naval passed away, eighteen factory sheds had been constructed and the last, the nineteenth, was completed in 1992.


As regards housing for workers, Naval would sit with the architects and insist on cross-ventilation.

 

The experience thus gained would prove to be most useful when designing Godrej Baug years later. The first housing project was taken in hand in 1951. This project known as Betthi Chawl initiated a brisk Programme of housing for workers; there was a break in the speed of construction between 1975 and 1985, when the Urban Land (Ceiling and Regulation) Act 1976 came into force. Otherwise, the going was smooth throughout. As of today, about 3,600 tenements stand erected in different sizes of one/two/three/ four-room flats with kitchen along with a few bungalows for top management executives on the hillside. There are three Godrej housing colonies in Vikhroli, located at the Creekside, Hillside and Station Road, where the employees live comfortably in spacious rooms - quite unheard of in Mumbai.

 

 

CONTINGENT LIABILITIES NOT PROVIDED FOR: [AS ON 31.03.2011]

 

(a) Guarantees given by the Company’s Bankers against counter-guarantees given by the Company Rs. 7216.375 Millions.

 

(b) Guarantees given by the Company’s Bankers on behalf of subsidiary/associate companies against counter guarantees given by the Company: Rs. 55.937 Millions.

 

(c) Guarantees given by Export-Import Bank of India, against the security of first equitable mortgage of specified immovable properties situated at Vikhroli, Mumbai: Rs. 1100.371 Millions.

 

(d) Excise Duty/Service Tax/Sales Tax demands in dispute and pending at various stages of appeal: Rs. 556.020 Millions.

 

(e) The State of Maharashtra has filed a suit against the Company, being Suit No. 679 of 1973, in the High Court of Judicature at Bombay, claiming ownership of part of the Company’s lands at Vikhroli, Mumbai. In the said Suit, which is still pending, various claims have been raised, which are undetermined and not acknowledged as debts due by the Company. According to the Company’s legal advisers, the Company has a complete defence against the plaintiff in the said Suit, and the said Suit is not sustainable.

 

(f) Claims against the Company under the Industrial Disputes Act, 1947 - amount indeterminate.

 

(g) Disputed Provident Fund liability for the period March 1996 to September 1997 arising on account of disapproval of infancy benefit: Rs. 5.300 Millions. The Supreme Court of India has allowed the company’s appeal and set aside the judgment of the High Court of Punjab and Haryana. The matter has been remanded to the regional provident fund commissioner for a fresh decision in accordance with law after hearing the parties concerned expeditiously.

 

(h) Other Claims against the Company not acknowledged as debt: Rs. 123.800 Millions.

 

NOTE:

 

Future cash outflows in respect of items (d) to (h) above are determinable only on receipt of judgements/decisions pending with various forums/authorities.

 

FUTURE PLANS:

 

1.       Development of motorized lifting of mattress panel in bed to access storage area.

2.       Use of PU-based spray edging for tables in education furniture.

3.       Incorporation of electronic vibration user alert in Flair chair to optimize ergonomics.

4.       Development of bio-safety cabinets.

5.       Design and development of brushless DC motors for hermetic compressors.

6.       Development of controlled induction motor applications.

7.       Development of new models of mechanical and electronic locks.

8.       Transition to emission compliant BS-Ill engines on diesel trucks with support from engine manufacturers.

9.       Development of new three-wheeler range and reach warehouse trucks.

10.   Transition to new energy-efficient AC motors on all electric trucks.

11.   Development of juice and soup machines, jointly with Veromatic International BV.

12.   Development of seismic-resistant racks.

13.   Research into using racks as a self supported building, and rack-clad buildings.

14.   Development of standardized dies for crank cases and ETB body.

 

 

Fixed Assets:

 

·         Freehold Land

·         Leasehold Land

·         Freehold Buildings

·         Leasehold Buildings

·         Staff and Workmen Quarters

·         Machinery

·         Vehicles

·         Furniture and Fixtures

·         Other Equipments

 

 

 


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.53.71

UK Pound

1

Rs.86.34

Euro

1

Rs.69.23

 

INFORMATION DETAILS

 

Information Gathered by :

PJA

 

 

Report Prepared by :

DPK

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

7

--RESERVES

1~10

8

--CREDIT LINES

1~10

7

--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

 

67

 

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

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

-

NB

                                       New Business

-

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.