MIRA
INFORM REPORT
|
Report Date : |
19.11.2007 |
IDENTIFICATION
DETAILS
|
Name : |
ILC INDUSTRIES LIMITED |
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Formerly Known As : |
INTEGRAL LOGISTICS COMPANY PRIVATE LIMITED |
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Registered Office : |
835/64, Amulya Corner, I Floor, III Main, 46th Cross, IV Block, Rajaji
Nagar, Bangalore 560 010, Karnataka |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
13.12.2000 |
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Com. Reg. No.: |
08 – 028284 |
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CIN No.: [Company
Identification No.] |
U60231KA2000PTC028284 |
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Legal Form : |
A closely held public limited liability company |
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Line of Business : |
Trading of Iron Ore |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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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 530000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having satisfactory track. Trade
relations are fair. Profit margin is under several pressure. Payments are usually
correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. Nothing adverse reported. |
LOCATIONS
|
Registered Office : |
835/64, Amulya Corner, I Floor, III Main, 46th Cross, IV Block, Rajaji
Nagar, Bangalore 560 010, Karnataka, India |
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Tel. No.: |
91-80-23101629 |
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Fax No.: |
91-8394-232196 |
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E-Mail : |
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Website : |
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Corporate Office : |
D 6/7, Near Industrial
Estate, Dam Road, Hospet
583203- Karnataka, INDIA |
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Tel. No.: |
91-8394-232202 / 232203 / S231304 / 230403 |
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Fax No.: |
91-8394-232196 |
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E-Mail : |
DIRECTORS
|
Name : |
Mr. K Somasekhar |
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Designation : |
Managing Director |
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Address : |
New Bandi, Harlaapur Post, Koppal Taluk, Harlaapur, Koppal, Karnataka |
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Date of Birth/Age : |
03.03.1967 |
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Date of Appointment : |
13.12.2000 |
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Name : |
Mr. K Chandrasekhar |
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Designation : |
Director |
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Address : |
New Bandi, Harlaapur Post, Koppal Taluk, Harlaapur, Koppal, Karnataka |
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Date of Birth/Age : |
01.06.1969 |
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Date of Appointment : |
13.12.2000 |
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Name : |
Mr. Vishwanath C Hiremath |
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Designation : |
Director |
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Address : |
Oramasri Nilaya, Newar Vrama Temple, Hospet – 583201, Karnataka, India
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Date of Birth/Age : |
01.02.1957 |
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Date of Appointment : |
13.12.2000 |
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Name : |
Mr. Jeer Jambanna |
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Designation : |
Director |
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Address : |
Leela Sadana, Behind M B T Complex, Bellary Road, Hospet – 583201,
Karnataka, India |
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Date of Birth/Age : |
13.10.1950 |
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Date of Appointment : |
13.12.2000 |
KEY EXECUTIVES
|
Name : |
Mr. V Chenthamarai |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
|
K Somasekhar |
|
3,389,309 |
|
Vishwanath C
Hiremath |
|
247,198 |
|
Jeer Jambanna |
|
139,713 |
|
Chandrashekar,
HUF |
|
280,000 |
|
S Chandrashekar |
|
140,000 |
|
Srinivas G |
|
70,000 |
|
Kavitha
Somashekar |
|
70,000 |
|
Uma |
|
70,000 |
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Total |
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4,406,220 |
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|
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|
|
Equity Share
Breakup |
|
Percentage of
Holding |
|
Category |
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Directors
or relatives of directors |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Trading of Iron Ore |
GENERAL
INFORMATION
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No. of Employees : |
150 |
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Bankers : |
State Bank of
India No. 97, Station
Road, Hospet – 583201 |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
AAGJ and Company Chartered Accountants |
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Address : |
10/1 II
Floor, III Main Road, Hanumanth Nagar, Bangalore 560 019, Karnataka, India |
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Associates/Subsidiaries : |
·
SVM Net Projects Solutions Private Limited ·
Sri Sainatha Fright Carriers ·
Hill Rock Earth Movers |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5,000,000 |
Equity Shares |
Rs.10/- each |
Rs. 50.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
4,406,220 |
Equity Shares |
Rs.10/- each |
Rs. 44.062
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
44.062 |
6.294 |
|
|
2] Share Application Money |
|
0.347 |
0.347 |
|
|
3] Reserves & Surplus |
|
87.406 |
81.549 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
131.815 |
88.190 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
328.059 |
260.177 |
|
|
2] Unsecured Loans |
|
0.000 |
0.000 |
|
|
TOTAL BORROWING |
|
328.059 |
260.177 |
|
|
DEFERRED TAX LIABILITIES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
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TOTAL |
|
459.874 |
348.367 |
|
|
|
|
|
|
|
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APPLICATION OF FUNDS |
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|
|
|
|
|
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FIXED ASSETS [Net Block] |
|
92.250 |
51.783 |
|
|
Capital work-in-progress |
|
0.000 |
0.000 |
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|
|
|
|
|
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INVESTMENT |
|
0.468 |
0.348 |
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|
DEFERREX TAX ASSETS |
|
0.631 |
0.000 |
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|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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Inventories |
|
99.620 |
34.698 |
|
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Sundry Debtors |
|
305.779 |
286.024 |
|
|
Cash & Bank Balances |
|
30.046 |
28.371 |
|
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Other Current Assets |
|
0.000 |
0.000 |
|
|
Loans & Advances |
|
146.077 |
54.074 |
|
Total
Current Assets |
|
581.522 |
403.167 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
215.265 |
104.938 |
|
|
Provisions |
|
0.000 |
2.026 |
|
Total
Current Liabilities |
|
215.265 |
106.964 |
|
|
Net Current Assets |
|
366.257 |
296.203 |
|
|
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|
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MISCELLANEOUS EXPENSES |
|
0.268 |
0.033 |
|
|
|
|
|
|
|
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TOTAL |
|
459.874 |
348.367 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
|
Sales Turnover and Other Income |
|
1525.497 |
1303.526 |
|
Total Income |
|
1525.497 |
1303.526 |
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|
|
|
|
|
Profit/(Loss) Before Tax |
|
83.271 |
68.512 |
|
Provision for Taxation |
|
39.645 |
24.861 |
|
Profit/(Loss) After Tax |
|
43.626 |
43.651 |
|
|
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Earnings in Foreign Currency : |
|
|
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Total Earnings |
|
1233.184 |
1013.987 |
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|
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Imports : |
|
|
|
|
Total Imports |
|
39.187 |
7.842 |
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|
|
|
|
|
Depreciation & Amortization |
|
24.794 |
20.319 |
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
|
2.86 |
3.35 |
|
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|
Net Profit Margin (PBT/Sales) |
(%) |
|
5.46 |
5.26 |
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|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
12.36 |
15.06 |
|
|
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Return on Investment (ROI) (PBT/Networth) |
|
|
0.63 |
0.78 |
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|
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Debt Equity Ratio (Total Liability/Networth) |
|
|
4.12 |
4.16 |
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|
|
|
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Current Ratio (Current Asset/Current Liability) |
|
|
2.70 |
3.77 |
LOCAL AGENCY
FURTHER INFORMATION
The Subject was formerly known as “Integral Logistics Company Private
Limited” and changed to its present name w.e.f. July 22, 2005.
Bankers Charges
Report as per Registry
|
Name of the company |
INTEGRAL
LOGISTICS COMPANY PRIVATE LIMITED |
|
Presented By |
Mr. K
Somasekhar, Managing Director |
|
1) Date and description of instrument creating the change |
Dated 08.02.2004 Agreement of
hypothecation of goods and assets Form C – 2 Letter registered
the grant of individual limits within the overall limit Form C – 5 Both the above
pertain to same charge Regd. on
04.03.2004 as D. No. 16 & 17 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 40.000
Millions EPC Stocks |
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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 of
all present and future goods, book debts and all other movable assets of the
borrower including documents of title to goods, outstanding monies,
receivables, including receivables by way of cash assistance and cash
incentives under the cash incentive claims by way of refund of customs duties
under the duty draw back credit scheme or any other scheme, bills, invoice,
documents, contracts, insurance policies guarantees, engagements, securities
investments rights and pledge / hypothecation of the present machinery listed
in the schedule hereunto and all future machinery belonging to or in the
possession or under the control of the borrow wherever lying stored and kept
and whether in possession of the borrower or of the bank or of any third
party whether in India or elsewhere through out the world including all such
goods, other movable assets as may be in course of shipment, transit or
delivery by way of First Charge. |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of Interest
3.15 % below SBAR Rate 7.1 % p.a.
with periodical rests and or at such rate or rates as may be specified by the
bank from time to time Margin : 42.85 %
on RM / SIP / FG Repayment on
demand |
|
5) Name and Address and description of the person entitled to the charge. |
State Bank of
India No. 97, Station
Road, Hospet – 583201 |
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6) Date and brief description of instrument modifying the charge |
Dated 03.11.2004
All the above
pertain to same modification. |
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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. |
By the above
modification, the facility stands increased from Rs. 40.000 Millions to Rs.
80.000 Millions. Interest @ 6.50 %
p.a. compounded monthly. Margin : stock –
40 % Book debts – 40 %
All the other terms
and conditions remain the same. |
|
This form is for |
Modification of
charge |
|
Charge
identification number of the charge to be modified |
80030599 |
|
Corporate
identity number of the company |
U60231KA2000PTC028284 |
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Name of the company
|
ILC INDUSTRIES LIMITED |
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Address of the
registered office or of the principal place of business in India of the company |
835/64, Amulya Corner, I Floor, III Main, 46th Cross, IV Block, Rajaji
Nagar, Bangalore 560 010, Karnataka, India |
|
Type of charge |
|
|
Particular of
charge holder |
State Bank of
India Hospet Branch No. 97, Station
Road, Hospet – 583201,Karnataka, India |
|
Nature of
description of the instrument creating or modifying the charge |
Supplemental
agreement of hypothecation of goods and assets for overall increase in limit
– Form C 2A, Letter regarding the grant of individual limits within the
overall limits form C – 5 [Both the above petrtain to the same charge]. |
|
Date of
instrument Creating the charge |
16.04.2007 |
|
Amount secured by
the charge |
Rs. 300.000
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest Rate : WCL At
2.75 % below BPLR with a minimum of 10.00 % p.a. rising or falling therewith,
on daily products with monthly rests. Present effective rate 11.00 % p.a. Penal interest
for non compliance of terms of sanction : Max 2 % p.a. over the normal rate.
Prepayment penalty as per terms of sanction. Terms of
repayment Working capital
facility repayable on demand. Margin Raw Material :
Semi finished goods / finished goods – 10 % Extent operation
of the charge Exclusive first
charge on the assets of the company and to the full extent. Others : Cash credit [EPC]
– Rs. 300 Millions |
|
Short particulars
of the property charged |
Hypothecation of
present and future all of the borrower’s stocks or raw materials, semi finished
and finished goods, stores, spares, tools, accessories, components, book
debts, bills, claims, receivables, outstandings, invoices documents,
contracts, insurance polices, guarantees, engagements, securities,
investments, plant an machineries, other movable assets etc wherever situate,
held or stored or in transit or in the custody of any third party. |
|
Date of latest
modification prior to the present modification |
03.02.2006 |
|
Particulars of
the present modification |
By the present
modification the amount secured by the charge stands increased from Rs. 230
Millions to Rs. 300 Millions security of current assets, movable fixed assets
other movables already obtained and detailed in Col No. 14 herein above
continues to be available for the enhanced limit also. All other terms and
conditions remain unchanged. |
AS PER WEBSITE
Company profile
Subject is located in Hospet, the Steel city of the South,
is a company to reckon with, Amidst the giants and veterans of Steel Industries
in Bellary District, subject is best known for its Business focus, steady
growth, able leadership and professionalism.
Subejct's phenomenal growth and diversification into various
sectors could be definitely be an interesting case study for the market
watchers and industry analysts.
Subject which was started in 1994 as a logistics company has
today forayed into various sectors including banking, education, petroleum
retailing and slated to enter the fields of warehousing, cold storage and education
sector.
Mr. Somasekhar, the founder and managing director of subject
is a fine visionary and an astute businessman. This super achiever envisaged
the tremendous potential for the growth of mining and steel industry in this
region at the right moment to start a company which today stands a colossal
proof of his business acumen and able leadership.
It is also interesting to watch the morph
of proprietary concern into a robust corporate conglomerate in the steel sector
within a very short time. ILC's core competence in the field of mining and
export has unequivocally been proved by the two star export house status and
two time consecutive Capexil Award for excellence in export. It is now poised
to achieve THREE STAR TRADING HOUSE Status.
Managing Director
K. Somasekhar
Mr. K. Somasekhar hails from a remote village of Bandi
Harlapur in Koppala Taluk. After his graduation in Mechanical Engineering from
Gadag, he did his MBA from Kolhapur. After a brief stint as Senior
Officer (marketing), he flung into the business bandwagon of Sri Sainath
Roadlines, which his father had nourished well. He launched Integral
Logistics Company Private Limited and made a huge thrust into the fast growing
business logistics, courtesy the booming Mining and Steel industry.
Soon, the company diversified into Mining and Mineral
Processing, Iron ore trading and exports. Strategic diversifications in the
areas of Banking, Education and Trading of Petroleum products enhanced both the
business as well as the credibility.
Mr Somasekhar is a Rotarian participating in Rotary
concerns. He has nurtured the school at his native place. Subject is awarding
10 meritorious students from this school every year. Subject has been actively
engaged in the development of the local Government School. Subject has
been adopting two children below poverty line from 10th Standard, upto their
completion of Pre-University Course.
Mr. K. Somasekhar always believes that education is the
backbone of any economy.
ILC has also donated generously for various social service
institutions. Subject has acquired land to establish a Old age Home which will
be functional by 2007.
Mr. K. Somasekhar is the present President of Vikas
Educational Society that is running a school in Sindhanur with 800 children.
Mr. Somasekhar is also the M.D. of SVM Nett Project
Solutions Private Limited that is also into mining operations.
An avid observer of industry, Mr. K.Somasekhar keeps a tab
on the latest developments through new age techno - gadgets.
At the age of 37, Mr. Somasekhar is the leading entrapreneur
in this region, who understands the logistics of industry as well as
development in the right perspective and this acumen has placed him among the
best entrapreneurs in the country.
ILC is poised to cross a business
turn over of Rs. 4000 Millions in the current year, barely after a year of Rs.
2500 Millions business. ILC expects to move into a Three Star Trading Company
Stratum, from the present Two Star Trading Company status.
ILC is also given the Gold Card Award from State Bank of
India, Karnataka for its recognition as a trader exporter of merit.
The Team
Other Founder Directors on the Board
Vishwanath C Hiremath
Mr. Vishwanath Hiremath is the Chairman of Vikas Souharda
Cooperative Bank Limited. He is a person with vast experience in finance and
contracting apart from a good exposure to civil works and social works.
He is also the member on the Board of the Karnataka Rajya
Souharda Samyuka Sahakari Niyamita. He was a part of the team that won
the award from the State of Karnataka for achievements in the youth clubs.
He has been personally awarded the Rajiv Gandhi Ekta Award.
As an astute Banker, he is spirited with new ideas for the development of ILC.
J.
Jambanna
With more than thirty years of experience in Mining
Industry, Mr. J. Jambanna is a rare blend of family business of transportation
and Contracts, with a good exposure to the mining industry during his
days as executive in a mining group, Mr. J. Jambanna has rich experience
of trading in mineral-ore.
K. Chandrasekhar
Mr. K. Chandrasekhar, the younger brother of Mr Somasekhar
is leading the logistics division. Monitoring the movement of all the vehicles
and managing a thousand strong man power, he is the backbone of ILC field
activities. He oversees the accounts and finances of ILC.
Incidentally, Mr K. Chandrasekhar is the President of the
Transport owner's association, Hospet
Service Excellence
This year, Mr. K. Somasekhar is awarded with prestigious
Capexil Award, which was given away by Mr. Budhdhadev Bhattacharjee, the
Hon'ble Chief Minister of West Bengal. It is worth nothing that this is the
second such award in a row. Last year he had the honour of receiving the
Capexil Award from Mr.P. Chidambaram, the Finance Minister.
Mr. Somasekhar has also been awarded Best Trader of
Karnataka from Canara District Chamber of Commerce this year.
SERVICES - LOGISTICS
Transportation is the first venture to be started in 1993
with the promotion of Sri sainath roadlines, With unprecedented boom in mining
and steel sector and huge opportunity for transportation subsequently sri
sainath freight carriers was started. To facilitate large scale shipment of iron-ore
from mine head upto ship dock, integral logistic company was established with a
target of capturing 25% market share.
Long time involvement of the company in iron-ore
transportation naturally opened up another opportunity of iron ore trading exports
to ILC. The company embarked on iron-ore trading in 2003 and a full fledged
export house was started in 2004 .
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. 39.39 |
|
UK Pound |
1 |
Rs. 81.49 |
|
Euro |
1 |
Rs. 58.49 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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 |
|