MIRA
INFORM REPORT
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Report Date : |
30.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
LEO LUBRICANTS PRIVATE LIMITED |
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Registered Office : |
1002, Ghaswalla Towers, Dr. P. G. Solanki Path, Off Lamington Road,
Mumbai 400007, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
18.07.2003 |
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Com. Reg. No.: |
141393 |
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CIN No.: [Company
Identification No.] |
U74999MH2003PTC141393 |
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IEC No.: |
0303086351 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUML05373E |
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PAN No.: |
AAACL9243P |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer of automotive and industrial lubricants, greases, and specialties |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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Maximum Credit Limit : |
USD 39300 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track records. Mr.
Ravi denied to part with any details. Company’s profitability is under severe
pressure. Payments are reported us slow but correct. The company can be considered for small to mediocre business dealings
at usual trade terms and conditions. |
INFORMATION PARTED
BY
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Name : |
Mr. Dashrath M. Patel |
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Designation : |
Managing Director |
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Mobile No.: |
91-9322233051 |
LOCATIONS
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Registered Office : |
1002, Ghaswalla Towers, Dr. P. G. Solanki Path, Off Lamington Road,
Mumbai 400007, Maharashtra |
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E-Mail : |
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Website : |
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Branch Office : |
Faiz – E – Edroos Building, 3rd Floor, Off. No. 33,
371/373, Narsi Natha Street, Masjid Bunder (W), Mumbai, Maharashtra |
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Tel. No.: |
91-22-23442346 / 23442347 /27412558/27410005 |
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Fax No. : |
91-22-23442348 |
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Mobile : |
91-9892531235 / 9322233051 |
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E-Mail : |
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Website : |
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Area : |
1000 sq ft |
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Location : |
Owned |
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Factory : |
G 13/13, MIDC, Taloja, Near Navi Mumbai, Dist – Raigad, Maharashtra, India |
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Tel. No.: |
91-22-27412558/ 0005 |
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Fax No. : |
91-22- 27412559 |
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Email : |
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Area : |
1000 sq ft |
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Location : |
Owned |
DIRECTORS
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Name : |
Mr. Pramesh T. Ved |
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Designation : |
Managing Director |
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Address : |
603A, Ghaswala Building, 6th Floor, Dr. P G. Solanki Path,
Lamington Road, Mumbai – 400 007. |
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Date of Birth/Age : |
20.11.1954 |
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Date of Appointment : |
18.07.2003 |
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Name : |
Ms. Varsha P. Ved |
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Designation : |
Director |
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Address : |
603A, Ghaswala Building, 6th Floor, Dr. P G. Solanki Path,
Lamington Road, Mumbai – 400 007. |
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Date of Birth/Age : |
06.08.1961 |
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Date of Appointment : |
18.07.2003 |
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Name : |
Mr. Dashrath M. Patel |
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Designation : |
Managing Director |
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Address : |
1002, Ghaswala Building, 10th Floor, Dr. P G. Solanki Path,
Lamington Road, Mumbai – 400 007. |
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Qualification : |
B .E Civil |
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Experience : |
20 years |
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Date of Birth/Age : |
29.01.1963 |
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Date of Appointment : |
01.09.2004 |
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Name : |
Mr. Raviraj K. Kotian |
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Designation : |
Director |
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Address : |
C/304, Prithvi Enclave, Opp. Bhor Industries, W. E. Highway, Borivali
(E), Mumbai – 400 066. |
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Qualification : |
B. Com |
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Experience : |
20 years |
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Date of Birth/Age : |
13.07.1957 |
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Date of Appointment : |
15.09.2005 |
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Name : |
Mr. Dinesh M. Patel |
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Designation : |
Director |
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Address : |
18, Utkarsh Society, Vis Nagar, Dist. Mchsana, Gujarat – 384315. |
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Qualification : |
Fine arts |
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Experience : |
20 years |
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Date of Birth/Age : |
01.06.1964 |
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Date of Appointment : |
15.09.2005 |
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Name : |
Mr. Govind M. Patel |
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Designation : |
Director |
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Address : |
18, Utkarsh Society, Vis Nagar, Dist. Mchsana, Gujarat – 384315. |
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Qualification : |
B.Sc, MBA |
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Experience : |
15 years |
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Date of Birth/Age : |
26.03.1968 |
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Date of Appointment : |
15.09.2005 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
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Mr. Dashrath M. Patel |
300000 |
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Mr. Dinesh M. Patel |
300000 |
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Mr. Govind M. Patel |
300000 |
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Total |
900000 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of automotive and industrial lubricants, greases, and specialties |
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Brand Name : |
“ Leo “ |
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Exports : |
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Products : |
· Automotive and
Industrial Lubricants · Coolants · Brake Fluids · Petroleum Jelly |
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Countries : |
Gulf Countries, Neighbouring Asian Countries and African Countries |
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Terms : |
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Selling : |
Cash and Credit (30 Days and 60 Days) |
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Purchasing : |
Cash |
GENERAL
INFORMATION
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Customer : |
Wholesaler |
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No. of Employee
: |
33 (office – 8, Factory
- 25) |
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Bankers : |
· Dena Bank, Sandhurst Bridge Branch, Sandhurst Road, Mumbai – 400004 · Dena Bank, Opera House · Axis Bank, Crawford Market |
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Facilities : |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
· H. B. Gandhi and Company Chartered Accountants 208, Samuel Street, Masjid Bunder, Mumbai
– 400 003, Maharashtra, India · Doshi Devani and Company Chartered Accountants 407, Rajshila, 597, J.S.S. Road, Princess Street
Mumbai-400 002, Maharashtra, India Email : doshi.devani@yahoo.co.in |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
AS ON 31.03.2007
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
|
1000000 |
Equity Shares |
Rs. 10/- each |
Rs. 10.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
900000 |
Equity Shares |
Rs, 10/-
each |
Rs. 9.000
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
9.000 |
9.000 |
2.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.003 |
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3] Reserves & Surplus |
0.825 |
1.787 |
0.455 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
9.825 |
10.787 |
2.458 |
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LOAN FUNDS |
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1] Secured Loans |
12.239 |
12.255 |
6.524 |
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2] Unsecured Loans |
5.697 |
6.649 |
10.014 |
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TOTAL BORROWING |
17.936 |
18.904 |
16.538 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
27.761 |
29.691 |
18.996 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
10.889 |
12.402 |
9.280 |
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Capital work-in-progress |
0.000 |
0.000 |
0.601 |
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INVESTMENT |
0.000 |
0.015 |
0.015 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
7.071
|
11.177 |
5.054 |
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Sundry Debtors |
9.626
|
7.897 |
10.208 |
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Cash & Bank Balances |
1.159
|
0.931 |
0.362 |
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Other Current Assets |
0.000
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0.000 |
0.528 |
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Loans & Advances |
6.580
|
5.190 |
5.391 |
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Total
Current Assets |
24.436
|
25.195 |
21.543 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
7.655
|
8.043 |
12.523 |
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Provisions |
0.000
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0.000 |
0.072 |
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Total
Current Liabilities |
7.655
|
8.043 |
12.595 |
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Net Current Assets |
16.781
|
17.152 |
8.948 |
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MISCELLANEOUS EXPENSES |
0.091 |
0.122 |
0.152 |
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TOTAL |
27.761 |
29.691 |
18.996 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
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Sales Turnover |
79.625 |
79.195 |
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Other Income |
0.000 |
0.000 |
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Total Income |
79.625 |
79.195 |
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Profit/(Loss) Before Tax |
(0.529) |
1.485 |
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Provision for Taxation |
0.000 |
0.000 |
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Profit/(Loss) After Tax |
(0.529) |
1.485 |
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Earnings in Foreign Currency : |
65.604 |
67.350 |
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Expenditures : |
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Interest |
2.274 |
2.307 |
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Depreciation & Amortization |
1.708 |
1.559 |
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Other Expenditure |
76.172 |
73.844 |
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Total Expenditure |
80.154 |
77.710 |
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KEY RATIOS
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PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
(0.66)
|
1.88 |
-- |
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Net Profit Margin (PBT/Sales) |
(%) |
(0.66)
|
1.88 |
-- |
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Return on Total Assets (PBT/Total Assets} |
(%) |
(1.50)
|
3.95 |
-- |
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Return on Investment (ROI) (PBT/Networth) |
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(0.05)
|
0.14 |
-- |
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Debt Equity Ratio (Total Liability/Networth) |
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2.60
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2.50 |
11.85 |
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Current Ratio (Current Asset/Current Liability) |
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3.19
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1.47 |
1.71 |
LOCAL AGENCY FURTHER
INFORMATION
Trade Reference
·
Apar Industries, Chembur
Mr. Rajesh Parekh – 91- 22- 25263400
·
Eastern Enterprises, Sewree
Mr. Aazam – 91-22- 24134071
·
Columbia Petrochem, Bandra
Mr. Mehul – 91-22- 26462915
·
Western Petroleum, Sewree
Mr. Bhattacharya – 91-22- 25707083/ 84
Form No.8
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Name of the company |
M/s LEO
LUBRICANTS PRIVATE LIMITED |
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Presented By |
DENA BANK, Sandhurst Bridge Branch, Mumbai. |
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1) Date and description of instrument creating the change |
UNATTESTED Agreement
of Hypethecation of Goods. Book Debts and other movable assests dated
27.08.2005 between M/s. LEO LUBRICANTS PRIVATE LIMITED (therein and
hereinafter referred to as “the Borrower”) and DENA BANK (therein and
hereinafter referred to as “the Bank”) |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 21.750
millions |
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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
: GOODS : Stock of Petroleum products both present
and future, now being or hereinafter during the continuance of this Agreement
brought into new or hereafter in course of to any godowns, jathas or
whatsoever and wheresoover in the possession or occupation of the Borrower
(hereinafter referred to as the “said Goods”). MOVABLE AND OTHER
ASSETS: Assets of the
Borrower of whatsoever nature including Plant. Machinery, Tools and
accessories, stores, spares, relating to the Plant and Machinery, furniture,
articles, office equipments, computers and things belonging to the Borrower
and lying and being at their factory premises at G-13/13, M.I.D.C. Taloja,
being movable properties and capable of passing by delivery, both present and
future whether installed or not and whether now lying loose or in cases and
now being or at any time hereinafter during the continuance of this Agreement
brought into or upon or at any time in course of transit to the premises of
the Borrower at as aboveafter by way of substitution or in addition or other
place whatsoever and wheresoever in the possession or occupation of the
Borrower (hereinafter referred to as the “said assets”) AND all Tangible, movable
properties. BOOK DEBTS : All the present
and future Book-Debts, Outstanding, moneys, receivables, claims, bills,
rights to or in movable properties and movable assets and which are now due,
owing or payable or belonging to the Borrower or which may at any time
hereafter during the continuance of this security become due, owing, payable
or belonging to the Borrower in the course of its business by any person,
firm, company or body corporate or by the Government central or State or
Indian Railways, any Government Department or Office or any Municipal or
local or public or Semi-Government body or authority or any body corporate or
undertaking or project whatever in the public sector (hereinafter referred to
as the “said debts”) (hereinafter the said goods, the said debts and the said
assets are collectively referred to as the “Hypothecated Premises”) for
payment ad discharge by the Borrower to the Bank on demand the said credit
facilities and all other moneys at any time payable by the Borrower to the
Bank under or in respect of all or some or any of the aforesaid facilities
granted or to be granted to the Borrower. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Hypothecation of
Hypothecated premises as stated in column (3) above to secure diverse credit facilities
of Rs. 21.750 millions against Hypo of stocks and Book Debts and Movable
assets. Margin : 30%
against stock. 50% against Book Debts. Term-C/C :
Demand. Rate of interest
: 13.00% p.a or advised by bank from time to time. Power to Entry,
Power to inspect, to appoint Receiver and to Sell, etc. |
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5) Name and Address and description of the person entitled to the charge. |
DENA BANK Sandhurst Bridge
Branch, Mumbai. |
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6) Date and brief description of instrument modifying the charge |
UNATTESTED
Memorandum of First Modification of Goods, Book Debts and other Movable
Assets dated 23.11.2005 between M/s. Leo Lubricants Private Limited (therein
and hereinafter referred to as the “Borrower”) and Dena bank (therein and
hereinafter referred to as the “Bank”). |
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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 First
Modification : Charge
modified Rs. 21.750 millions:
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Corporate
identity number (CIN) Foreign company registration number |
U74999MH2003PTC141393 |
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Name of the
Company |
LEO LUBRICANTS
PRIVATE LIMITED |
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Address |
1002, Ghaswalla Towers,
Dr. P. G. Solanki Path, Off Lamington Road, Mumbai 400 007, Maharashtra,
India. |
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This form is for |
Modification of
charge |
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Type of Charge |
·
Immovable
property ·
Book Debts |
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Particulars of
the charge holder |
DENA BANK, Sandhurst
Bridge branch, Sandhurst Road, Mumbai – 400 004, Maharashtra |
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Nature or
description of the instrument(s) creating or modifying the charge |
Memorandum of
Entry for Extension of Existing Mortgage and Unattested Memorandum of Modification
of Hypothecation Agreement. |
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Date of the
instrument creating or modifying the charge |
30.08.2007 |
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Amount secured by
the charge |
Rs. 27.750
millions |
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Brief particulars
of the principal terms and conditions and extent and operation of the charge |
Rate of interest 13%p.a. Terms of
repayment Non fund based
Bank guarantee. Hence Terms of repayment not applicable for this
modification. Margin 30% against
stock, 50% against book debts. Extent and
operation of the charge As per the Memorandum
of entry for Extension of Existing Mortgage and Unattested Memorandum of
Modification of Hypothecation Agreement. |
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Short particulars
of the property charged (including location of the property) |
Company’s
immoveable property consisting of land, buildings, structures, fixed plant
and machinery, and other fittings and fixtures now constructed, erected or
lied thereon both present and future, situste lying or bearing at G-13/13,
M.I.D.C., Taloja, Dist. Raigad, Maharashtra. |
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Particular of the
present modification |
In the place of
the figures and words Rs. 27.750 millions wherever occur in the principal
agreement and Memorandum/ Memoranda of modification/s date 27.08.2005,
23.11.2005, 16.02.2006, 25.05.2006 the figures and words Rs. 5 millions shall
be substituted to the intent and effect that the maximum limit in the said
credit Facility/ies account/s shall be increased by the Bank from Rs. 27.750
millions - to Rs. 27.750 millions |
Website details:
Profile:
Subject is leading amongst the Automotive players in the petroleum
sector, with its product portfolio including a wide array of lubricants
automotive lubricants, (like Engine Oils, Gear Oils and 2T Oils; Brake fluid ),
greases and other specialties. The company has many certifications to its
credit and has been thriving in the sector due to the impeccable quality of its
products.
After establishing a firm business presence in the domestic petroleum market,
Leo Lubricants has embarked in the overseas market and has already garnered an
epitome of reliability and promptness for itself in the Gulf, African &
neighbouring Asian countries. their progress is highly attributed to the
patronage received from valuable customers in these countries. Furthermore, with
the current Geographical boundries of their clientele, the company expects to
widen its export horizon in the coming years.
The company has attained an ISO 9001: 2000 certification
from BVQI (Bureau Veritas Quality International Certificate of Approval) and it
is accredited and certified from UKAS (United Kingdom Accreditation Service)
& NABCB. These certification and registrations have manifested a reliable
epitome for the company and provides it with certification.
Quality
Leo Lubricants is acknowledged as a quality conscious
company, both in domestic and international market. Moreover, the company's
competence and performance capability in the sector can be envisioned by these
accreditations.
The quality policy adhered to in their manufacturing unit is underlined below:
• To provide consistent quality products and services, meeting customer's
requirements and specification.
• To exceed their customer's expectations & satisfaction.
• To continually improve the standards of products and services through
effective implementation of quality management system.
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.46.94 |
|
UK Pound |
1 |
Rs.85.57 |
|
Euro |
1 |
Rs.67.79 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
31 |
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 |
|