MIRA
INFORM REPORT
|
Report Date : |
30.01.2007 |
IDENTIFICATION DETAILS
|
Name : |
V S LAD AND SONS |
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Registered Office : |
House of Lad, Palace Road, Sandur –
583119, Bellary District, Karnataka,
India |
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Country
: |
India |
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Financials
(as on) : |
--- |
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Date of Incorporation : |
1985 |
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TAN No.: (Tax Deduction & Collection
Account No.) |
-- |
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PAN No.: (Permanent Account No.) |
-- |
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Legal Form : |
Partnership concern
with an unlimited liability of the partners. |
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Line of Business : |
Engaged in trading
Mining, plantations & transport services |
RATING
& COMMENTS
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MIRA’s Rating : |
B |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable
& favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
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Maximum Credit Limit : |
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Status : |
Moderate |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Management who are
local politician and resourceful remained non-cooperative during current
investigation. Subject appears to
be very active and doing diversified business. Trade relations are fair.
Nothing adverse reported. Payments are usually correct and as per
commitments. But in absence of
performance and financial details, it would be difficult to assess
creditworthiness and financial status. Hence, some caution is needed for any
business dealings. |
LOCATIONS
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Registered Office : |
House of Lad,
Palace Road, Sandur-583119, Bellary District, Karnataka, India |
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Tel. No.: |
91-8395-260378/261299 |
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Fax No.: |
91-8395-260448 |
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E-Mai : |
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Website : |
http://www.vsladmining.com |
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Area
: |
5000 Sq. ft |
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Location
: |
Residential (City) |
PARTNERS
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Name : |
Anil H Lad |
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Designation : |
Partner |
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Address : |
Prashanth Nivas
Krishna Nagar, Sandur-583119 |
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Name : |
Mr Eknath Lad |
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Designation : |
Partner |
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Name : |
Mr Vishwas Lad |
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Designation : |
Partner |
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Name : |
Mr Santosh Lad |
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Designation : |
Partner |
BUSINESS
DETAILS
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Line of Business : |
Engaged in trading
Mining, plantations & transport services |
GENERAL
INFORMATION
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Bankers : |
State Bank of
India, Hospet [Substantial Facilities] State Bank of
Mysore, Sandur Bank of India,
Hospet |
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Banking
Relations : |
Satisfactory |
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Auditors : |
Chandrappa and
Company Chartered
Accountants Bellary |
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Mobile No: |
91-9448060653 (Mr
Gadilingappa) |
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Associates/Subsidiaries : |
Ø
VSL MINING COMPANY PRIVATE LIMITED Ø
VSL Mining Project Private Limited Ø
VSL Enterprises Ø
VSL Trading Company Ø
VSL Transport Company Ø
Lad Plantation and Resorts Limited |
FINANCIAL DATA
[all
figures are in Rupees Millions]
No Financials are
available since management remained non-cooperative during current
investigation.
Partners also
declined business details.
LOCAL
AGENCY FURTHER INFORMATION
Group Employees are
500.
Ms Malammir ---
Receptionist
INDUSTRY VERTICALS
VSL group has evolved to be a multi
faceted group making contribution in the following industry verticals:
·
Mining
·
Resorts & Water sports
·
Transportation
·
Plantations
·
Health
Mining is the core of the activities
which contributes to about 90% of the revenue.
VSL group has got its character from such illustrious personalities as Mr.
Heeroji V. Lad who is the patriarch of the group and a social service activist
who served Sandur as a MLA. This legacy is continued by his son Mr. Anil H. Lad
who is managing partner and chief executive officer of V.S. Lad and Sons.
Some of the achievements of the group
in the social services are:
·
Drinking water and sanitation project
in the areas of - Yeshwanthanagar, Krishnanagar, Bhujanaganagar, Ranjithpura
etc.
·
Finance assistance for women
micro-enterprises for getting sewing machines, bore wells for drinking water.
POLITICAL SAGA OF THE GROUP
VSL family sees political participation as a high leverage activity for social
service. With this view the family members are actively involved in the
political arena:
·
Mr. Heeroji V. Lad was the MLA of
Sandur
·
Mr. Anil H. Lad is the current MLA of
Kudligi a constituency adjoining Sandur
·
Mr. Santhosh Lad is the current MLA of
Sandur
VSL
offers consistent grades of iron ore products which meet the quality demands of
international and national customers.
|
Product type |
Iron
ore fines |
Iron ore fines (High Grade) |
Calibrated Ore |
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Chemical
properties |
Fe |
63.50% |
64/65% |
63.5% |
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SiO2 |
3.00% |
2.50% |
3.00% |
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Al2O3 |
3.00% |
2.50% |
3.00% |
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S |
0.02% |
0.02% |
0.02% |
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P |
0.07% |
0.06% |
0.07% |
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Moisture |
6.00% |
6.00% |
6.00% |
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Physical properties |
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Below
100mm - 95% |
Below 10mm- 95% |
Size
10mm-40mm |
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Below
150micron– 40% |
Below
150 micron – 40% |
Below
10mm - 15% |
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Above
10mm – 5% |
Above 10mm – 5% |
Above
40mm- 7% |
Production:
The
following table gives a glimpse of production activity at VSL
Grade
wise Production Details:
|
YEAR |
FINES |
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LUMPS |
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GRAND TOTAL |
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-65 |
+65 |
TOTAL |
-65 |
+65 |
TOTAL |
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1998-99 |
189997 |
229217 |
419214 |
57957 |
189288 |
247245 |
666459 |
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1999-00 |
184424 |
337778 |
522202 |
55540 |
238475 |
294015 |
816217 |
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2000-01 |
318916 |
539343 |
858259 |
50169 |
366172 |
416341 |
1274600 |
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2001-02 |
810013 |
714412 |
1524425 |
37555 |
292382 |
329938 |
1854362 |
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2002-03 |
701454 |
772090 |
1473544 |
29480 |
334509 |
363989 |
1837533 |
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2003-04 |
804852 |
756834 |
15651686 |
68305 |
319229 |
387534 |
1949220 |
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2004-05 |
(Projected) |
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Exports |
1.2 Millions
Tonnes |
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Domestic
Supplies |
1.00 Million
Tonnes |
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The
following are some of the prestigious customers of VSL:
Domestic:
·
Jindal Vijayanagar Steel Limited,
Bellary (JVSL)
·
Kirloskar Ferro Industries, Hospet
(KFIL)
·
Lanco Industries, Andhra Pradesh
·
Sathwahana Steel Plant, Andhra Pradesh
·
Sesa Industries Limited, Goa
·
Usha Ispat Redi, Maharashtra
·
Essar Steel
·
Kalyani
·
Fomento Goa
·
HOM Chennai
·
SVM Goa
Export:
·
Chinese steel mills through MMTC and
own export house
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 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.
44.27 |
|
UK Pound |
1 |
Rs.
86.71 |
|
Euro |
1 |
Rs.
57.13 |
SCORE
& RATING EXPLANATIONS
|
SCORE
FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
4 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
4 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
4 |
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--LEVERAGE |
1~10 |
4 |
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--RESERVES |
1~10 |
4 |
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--CREDIT LINES |
1~10 |
4 |
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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 |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
38 |
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 |
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 |
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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 |
|
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 |