MIRA
INFORM REPORT
|
Report Date : |
16.06.2008 |
IDENTIFICATION
DETAILS
|
Name : |
LEO ISPAT LIMITED |
|
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Registered Office : |
12/19, East Punjabi Bagh, New Delhi – 110 026 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
02.04.1993 |
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Com. Reg. No.: |
55-52874 |
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CIN No.: [Company
Identification No.] |
U74999DL1993PLC052874 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELL02993E |
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PAN No.: [Permanent
Account No.] |
AABCL0810H |
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Legal Form : |
A closely held public limited liability company. |
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Line of Business : |
Supplier of Steel Service Centre and Services provide to Maruti’s and Hero
Honda and all electricals people. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 200000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company meetings its normal commitments
timeously. Trade relations are fair. Business is active. The company can be considered good for normal business dealings. |
INFORMATION PARTED
BY
|
Name : |
Mr. Devi Dayal Garg |
|
Designation : |
Director |
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Contact No.: |
91-9310355555 |
|
Date : |
11.06.2008 |
LOCATIONS
|
Registered Office : |
12/19, East Punjabi Bagh, New Delhi – 110 026, India |
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Tel. No.: |
91-11-3252-8400 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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Corporate Office : |
Y-126, Loha Mandi, Naraina, New Delhi – 110 028, India |
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Tel. No.: |
91-11-25892323 / 25894141 |
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Fax No.: |
91-11-25891068 |
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Area : |
2500 Sq ft. |
|
Location : |
Owned |
|
|
|
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Factory : |
79-80, Ghevra Industrial Estate, Ghevra More, (Opp. Indaney Bottling
Plant), New Delhi – 110 041, India |
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Tel. No.: |
91-11-3252-8402-04 |
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Fax No.: |
91-11-2835-3333 |
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Location : |
Owned |
|
|
|
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Faridabad Office : |
B-193, Nehru Ground, Faridabad (Haryana), India |
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Tel. No.: |
91-129-3268430 |
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Fax No.: |
91-129-4034190 |
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Location : |
Rented |
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Bangalore Office : |
139-140, KIADB Road, 9th Crose Road, 3rd Phase,
Peenya Indl. Area, Bangalore – 5600058, India |
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Tel. No.: |
91-80-23720423 |
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Tele Fax No.: |
91-80-5127215 |
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E-Mail : |
|
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Location : |
Rented |
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Jaipur Office : |
A-12 A, Dubu Bag, Loha Mandi, Sansar Chandra Road, Jaipur (Rajasthan),
India |
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Tel. No.: |
91-141-3238434 |
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Tele Fax No.: |
91-141-5102190 |
|
Location : |
Rented |
DIRECTORS
|
Name : |
Mr. Devi Dayal Garg |
|
Designation : |
Director |
|
Address : |
12/19, East Punjab Bagh, New Delhi – 110 026, India |
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Date of Birth/Age : |
19.10.1967 |
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Qualification : |
Graduate |
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Date of Appointment : |
02.04.1993 |
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Name : |
Mr. Ashok Kumar Garg |
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Designation : |
Director |
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Address : |
29/7, East Punjab Bagh, New Delhi – 110 026, India |
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Date of Birth/Age : |
15.12.1970 |
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Qualification : |
Graduate |
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Date of Appointment : |
02.04.1993 |
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Name : |
Mrs. Poonam Garg |
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Designation : |
Director |
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Address : |
12/19, Punjab Bagh, New Delhi – 110026 |
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Date of Birth/Age : |
02.02.1970 |
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Qualification : |
Graduate |
|
Date of Appointment : |
01.05.2005 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
Equity share breakup (percentage of total equity)
|
As on 30.09.2007 |
|
|
Directors or relatives of directors |
17.82 |
|
Other top fifty (50) shareholders |
82.18 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Supplier of Steel Service Centre and Services provide to Maruti’s and
Hero Honda and all electricals people. |
|
|
|
|
Products : |
·
Hot Rolled Steel ·
Cold Rolled Steel ·
Galvanized Steel |
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Terms : |
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Selling : |
Credit – 90 days |
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Purchasing : |
Cash |
GENERAL
INFORMATION
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Customers : |
End Users |
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No. of Employees : |
Above 100 |
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Bankers : |
Jammu and Kashmir Bank Limited E-9, 2nd Floor, South East, Part – 2, New Delhi - 110 049,
India |
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Facilities : |
CC- Rs. 130.000 Millions, Rs. 3.300 millions |
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Banking
Relations : |
Satisfactory |
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Auditors : |
Rakesh Kumar Gupta and Associates A-2, Office No.22, 1st Floor, DDA Market (CSC), Paschim Vihar,
New Delhi – 110 063, India |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1000000 |
Equity Shares |
Rs. 100/- Each |
Rs. 100.00 millions |
|
|
|
|
|
|
|
Total |
|
Rs. 100.00
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
433380 |
Equity Shares |
Rs. 100/-
each |
Rs. 43.338
millions |
|
|
|
|
|
|
|
Total |
|
Rs. 43.338 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
43.338 |
19.382 |
14.882 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1.940 |
0.844 |
0.442 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
45.278 |
20.226 |
15.324 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
102.022 |
61.329 |
35.244 |
|
|
2] Unsecured Loans |
0.000 |
24.246 |
24.745 |
|
|
TOTAL BORROWING |
102.022 |
85.575 |
59.989 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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TOTAL |
147.300 |
105.801 |
75.313 |
|
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block] |
8.237 |
7.412 |
3.190 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX |
0.116 |
0.057 |
0.000 |
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
41.385
|
52.062 |
43.906 |
|
|
Sundry Debtors |
68.847
|
47.070 |
22.535 |
|
|
Cash & Bank Balances |
0.709
|
4.263 |
4.671 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
68.515
|
14.320 |
23.750 |
|
Total
Current Assets |
179.456
|
117.715 |
94.862 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
40.987
|
19.399 |
22.817 |
|
|
Provisions |
0.000
|
0.000 |
0.000 |
|
Total
Current Liabilities |
40.987
|
19.399 |
22.817 |
|
|
Net Current Assets |
138.469
|
98.316 |
72.045 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.478 |
0.016 |
0.078 |
|
|
|
|
|
|
|
|
TOTAL |
147.300 |
105.801 |
75.313 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
704.103 |
755.571 |
863.500 |
|
|
Other Income |
1.994 |
10.990 |
0.801 |
|
|
Total Income |
706.097 |
766.561 |
864.301 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
1.838 |
0.725 |
0.209 |
|
|
Provision for Taxation |
0.000 |
0.000 |
0.000 |
|
|
Profit/(Loss) After Tax |
1.838 |
0.725 |
0.209 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Purchases made for re-sale |
678.310 |
751.627 |
826.896 |
|
|
Increase/(Decrease) in Finished Goods |
9.308 |
0.000 |
28.794 |
|
|
Salaries, Wages, Bonus, etc. |
2.007 |
1.882 |
0.905 |
|
|
Managerial Remuneration |
0.000 |
0.000 |
0.240 |
|
|
Payment to Auditors |
0.020 |
0.019 |
0.020 |
|
|
Interest |
8.249 |
6.570 |
3.897 |
|
|
Insurance Expenses |
0.113 |
0.142 |
0.154 |
|
|
Power & Fuel |
0.864 |
0.609 |
0.411 |
|
|
Depreciation & Amortization |
1.741 |
1.292 |
0.782 |
|
|
Other Expenditure |
3.647 |
3.695 |
1.993 |
|
Total Expenditure |
704.259 |
765.836 |
864.092 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
0.26
|
0.09 |
0.02 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.26
|
0.10 |
0.02 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.98
|
0.58 |
0.21 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.04
|
0.04 |
0.01 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.16
|
5.19 |
5.40 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.38
|
6.07 |
4.16 |
LOCAL AGENCY
FURTHER INFORMATION
Trade References :
·
Climax Engineering Works – Delhi
·
Adlec Systems Private Limited – Delhi, Haryana
·
Emco Press Master Private Limited – Haryana, Faridabad
Form No. 8
|
Name of the company |
LEO ISPAT LIMITED |
|
Presented By |
Mr. Ashok Kumar
Garg, Director and the Jammu and Kashmir Bank Limited |
|
1) Date and description of instrument creating the change |
Deed of hypothecation of Stocks / Goods, Book debts dt. 31.03.2003 and extension of change over immovable properties for securing credit facilities of Rs. 72.300 millions (change reg. on 10.04.2003) |
|
2) Amount secured by the charge/amount owing on the securities of charge |
CC limit Against
Stock / Debtors of Rs. 37.300 millions and LC/BG limit of Rs. 35.000
millions. |
|
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
stock in trade / Goods and book debts and Extn. of change over properties
situated a) 12/19 East Punjabi Bagh at Delhi b) 79-80 Delhi C) 28/7 East
Punjab Bagh at Delhi. |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Margin for C/C
limit against stock 25% Margin for Book
Debts 50% Margin for Bg/LC
15% Interest as on
Credit Rating A. |
|
5) Name and Address and description of the person entitled to the charge. |
Jammu and Kashmir Bank Limited E-9, 2nd Floor, South East, Part – 2, New Delhi - 110 049,
India |
|
6) Date and brief description of instrument modifying the charge |
Deed of hypothecation
of stock/goods and Book debts and Letter of Guarantee from Borrower at
20.01.2005. |
|
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. |
Credit facilities
enhanced from Rs. 72.300 millions to Rs. 112.500 millions comprising of Rs.
67.500 millions as C/C limit and Rs. 45.000 millions as LC/BG limit. |
|
Corporate identity
number (CIN) Foreign company registration number |
U74999DL1993PLC052874 |
|
Name of the
Company |
LEO ISPAT LIMITED |
|
Address |
12/19, East Punjabi Bagh, New Delhi – 110 026, India |
|
This form is for |
Creation of
charge |
|
Type of Charge |
·
Book debts ·
Movable
property (not being pledge) ·
Others |
|
Particulars of
the charge holder |
Jammu and Kashmir Bank Limited E-9, 2nd Floor, South East, Part – 2, New Delhi - 110 049,
India |
|
Nature or description
of the instrument(s) creating or modifying the charge |
Deed of
hypothecation of book debts dt. 10.01.2007 and Deed of hypothecation of
goods/stocks dt. 10.01.2007 |
|
Date of the
instrument creating or modifying the charge |
10.01.2007 |
|
Amount secured by
the charge |
Rs. 133.300
millions |
|
Brief particulars
of the principal terms and conditions and extent and operation of the charge |
Rate of Interest 11% to be
serviced monthly. Terms of
repayment Out of future
cash inflows. Margin 1.
25% of stocks 2.
30% of book
debts 3.
10% on
non-fund based limits Extent and
operation of the charge All present and
furure assets Others Collateral : i)
First charge on all the present and future fixed assets.ii) Equitable
mortgage of property situated at 12/19, Punjabi Bagh East, new delhi valuing
Rs. 17.860 millions. iii) Equitable mortgage of property situated at Ghevra
Morh valuing Rs. 30.140 millions in the name of Sh. Devi dayal Garg. Iv)
Equitable mortgage of house property at 29/ and, East Punjabi Bagh, New Delhi
valuing Rs. 32.427 millions in the name of Sh. Ashok Garg and Smt. Mayawati
v) Land and Building at Khasra no. 60/6. |
Web Details :
The business requires the highest quality
steel products like Hot Rolled Steel, Cold Rolled Steel, Galvanized Steel. The
steel requirements are large. You often purchase several grades of steel in one
consignment. Till yesterday, you spent precious time and money developing the
material that met the requirement at regular intervals. Those times are over.
Leo Ispat Service Centre offers
one-stop, customized, just-in-time solutions at your doorstep.
History
/ Organisation
With a modest beginning in the year 1969 as a trading enterprises
in flat steel products, Leo Ispat ltd (formerly known as M/s. Rameshwar Dass
Devi Dayal Pvt. Ltd.) has made tremendous strides in their sphere of business
operations i.e supply of various flat steel products in assorted dimensions and
grades. With their Corporate Office housed at Ghevra More, New Delhi, they have
established branches at Faridabad, Jaipur, Ludhiana, and Bangalore. Having been
awarded BEST DEALER award by ESSAR for northern India, they are presently their
Consignment Agents for CR & GP and are on their panel for Retail Segment
for their HR products. They are also Consignment Agents of SHAH ALLOYS for MS
plates of 5 mm to 100 mm.
The story of Leo Ispat Ltd. can
be described in a single word - DEDICATION, with its motives as under :
• Dedication to the
market driven approach and customer delight.
• A dedication to
excel by providing qualitative services in all respect.
• A dedication to
grow.
And last but not the least, a
dedication to prosperity of all employees trade associates, suppliers and
customers. They believe - "The quest for perfection
is relentless"
Leo Ispat Ltd is today engaged in providing value added
services to various items of flat steel products like HR, CR, GP/GC, HRPO, and
Shot Blast Plates of Iron and Steel, Leo Ispat Ltd is an established player for
the supply of above products to many end user segments like Automobile, General
Engg. , Electricals, Hydraulic & Pneumatic Power Presses, Pressure Tanks
and Vessels, EOT Cranes & Electric Hoists, Hydra Cranes etc etc..
Leo Ispat Ltd is a one-stop shop for all flat steel
products, tailor made as per customer demands/specifications. Leo Ispat Ltd. is
committed to total customer satisfaction and believes in business at supersonic
speed, 24 hrs a day and 365 days a year.
Objective
/ Policy
• Continual
improvement in process control and products.
• Improving customer satisfaction level.
• On time delivery.
• Understanding customer requirements.
Leo Ispat is committed to the utmost customer satisfaction by adopting
the continual improvement philosophy throughout the organization with effective
implementation of quality management system.
Products
·
Hot Rolled Steel
Hot
rolled refers to product that is uncoated and has been formed at about 860
degrees Celcius from the mill and reduced while the strip temperature is
maintained.
·
Cold Rolled Steel
Cold
Rolled product refers to uncoated coil products that are rolled and has been
been formed as the second stage of processing from hot rolled coils.
·
Galvanized Steel
Galvanized
product has its surface altered by heat treatment before the zinc has
solidified after emerging from the galvanizing pot, and is entirely an
iron-zinc alloy coating.
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.42.90 |
|
UK Pound |
1 |
Rs.83.76 |
|
Euro |
1 |
Rs.65.99 |
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 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--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 |
|