Lava International Limited (LIL), as per the credit rating report, is engaged in designing, manufacturing, assembling, trading, and distributing mobile handsets, tablets, and accessories under the brands ‘Lava’ and ‘Xolo’. The company has set up an assembling unit for assembling handsets in Noida (Uttar Pradesh) with a total production capacity of around 48 million handsets per annum as of March 31, 2020. It also has 4 SMT lines with a capacity of around 9 million circuits per annum. It has a wholly-owned subsidiary Lava International (H.K.) Limited (Lava HK). LIL was incorporated in 2009 and has its registered office located in Delhi.

It is a market leader in several countries being 4th largest in India, 2nd largest in Thailand, 3rd largest in Sri Lanka and 5th largest in Bangladesh. It is currently in the works to expand its presence in the continent of Africa. The company has been building mobile handset design capability including industrial design, mechanical design, hardware design & software design. It has demonstrated quick and robust expansion since inception, showing profitability and growing sales since the first year of operations. Lava and Xolo are two brands that operate under the parent company. With ‘Create Possibilities’ as its guiding principle, Lava has embarked on an ambitious journey of becoming the 1st global consumer brand from India by empowering every human with quality innovative products.

LAVA has a wide product portfolio that encompasses tablets, feature phones, and smartphones having various models in bar and touch form factors at multiple price points to suit all categories of consumers. The handset-maker a couple of years ago had 50 products (about 20 smartphones and some 35 feature phones) in its portfolio which has now brought down to less than 15 phones (five smartphones and nine feature phones).

Lava has two manufacturing plants in India and the company claims to be the only Indian brand to design devices in India and do PCB SMT in its own factory.The Company has an in-house research and development centre and manufacturing facilities in Noida.

The company manufacture and assemble mobile handsets at their own manufacturing facility located in Noida, India (the “Noida Facility”), using surface-mount technology (“SMT”) which is a leading technology in mobile handset manufacturing. As of August 31, 2021, they had four SMT lines and 12 assembly lines operated by 3,105 workers, with a production capacity of 42.52 million Feature Phone Equivalent handsets per annum. The manufacturing facility has been certified with quality management systems, manufacturing execution system and environmental management systems for compliance with ISO9001: 2015 and ISO14001 and OHSAS45001 for occupational health and safety. Further, they own a significant portfolio of intellectual property rights, including 98 trademark registrations in India, 12 trademarks overseas and three registered copyrights.

Notes:-

• After the end but before issuance of financial statements, the company has given effect to stock split by way of split of face value of equity share from Rs 10/- to Rs 5/-.
• Also the company has issued bonus share to equity shareholders in the ratio of 1:1.
• Adjusted EPS has been calculated as per the requirement of Para 64 of Ind As 33 - Earnings per share.