MIRA INFORM REPORT

 

 

Report Date :

30.01.2007

 

IDENTIFICATION DETAILS

 

Name :

ASPHALT CONSTRUCTION (INDIA) PRIVATE LIMITED

 

 

Registered Office :

59, Bombay Samachar Marg, Sonawala Building, 1st Floor, Fort, Mumbai – 400 023, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

10.10.1991

 

 

Com. Reg. No.:

11-63553

 

 

CIN No.:

[Company Identification No.]

U45202MH1991PTC063553

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMA07307G

 

 

Legal Form :

Private  limited liability company

 

 

Line of Business :

To construct, erect, build, repair, re-model, demolish, develop, improve and maintain buildings, structures, houses, apartments, hospitals, schools, places of worship, highways, roads, paths, streets, sideways, platforms, runways, courts, alleys, pavements and to other similar construction leveling.

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Normal

 

Maximum Credit Limit :

USD 50000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow but Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is engaged in the business of construction, maintenance, repairs etc of buildings, streets, pavements, roads, highways etc. Though the Company’s business is progressing satisfactorily its profitability is very thin. Financial position is satisfactory. Trade relations are reported as fair. Payments are reported as slow, but correct.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

LOCATIONS

 

Registered Office :

59, Bombay Samachar Marg, Sonawala Building, 1st Floor, Fort, Mumbai – 400 023, Maharashtra, India

Tel. No.:

91-22-22662885/22702232/22702350

Fax No.:

91-22-24925037/24927513

E-Mail :

91-22-24921849

Website :

asphalt@bom5.vsnl.net.in, msaboo898@yahoo.co.in

Area :

Rented  - 400 sq.fts

 

 

Branches :

Located at :-

 

2, Baretto Lane, 1st Floor, Kolkata – 700 069, West Bengal

Tel. 91-33-2436130

Fax. 91-33-2435532

 

DIRECTORS

 

Name :

Mr. Vinay S. Jhunjhunwala

Designation :

Director

Date of Birth :

31.01.1951

Date of Appointment :

10.10.1992

Address :

D-103, Poonam Apartments, 1st Floor, A.B.Road, Worli, Mumbai – 400018, Maharashtra

 

 

Name :

Mr. Purshottam Sharma

Designation :

Director

Date of Birth :

03.06.1958

Date of Appointment :

10.10.1992

Address :

59, Sonawala Building, 1st Floor, Bombay Samachar Marg, Fort, Mumbai – 400023, Maharashtra

 

 

Name :

Mr. Aditya Jhunjhunwala

Designation :

Director

Date of Birth :

02.02.1977

Date of Appointment :

03.05.1999

Address :

D-103, Poonam Apartments, 1st Floor, A.B.Road, Worli, Mumbai – 400018, Maharashtra

 

 

KEY EXECUTIVES

 

Name

Mr. Vinay Banwarilal Jhunjhunwala

Designation

Director

Address

Juhu Tara Road, Jhunjhunwala Cottage, Mumbai – 400 049, Maharashtra

 

 

Name

Mr. Purshottam Rameshwarlal Sharma

Designation

Director

Address

59, Bombay Samachar Marg, Sonawala Building, Fort, Mumbai – 400 001, Maharashtra

 

 

Name :

Mr. Mahesh Soni

Designation :

Company Secretary

Qualification :

B.Com, A.C.A., F.C.S.

Address :

8, Navi Wadi, Off. No. 6, Dadiseth Agiary Lane, Mumbai – 400002, Maharashtra, India

Tel.No. :

91-22-22060788/22019270

Fax No. :

91-22-22091374

 

MAJOR SHAREHOLDERS

 

Names of Shareholders

No. of Shares

Mr. Vinay S. Jhunjhunwala

10100

Mr. Purshottam Sharma

100

Ms. Minakshi V. Jhunjhunwala

1,92,950

Ms. Ishiram Kumar

10,000

Mr. Aditya V. Jhunjhunwala

5,000

Ms. Anisha V. Jhunjhunwala

5,000

Total

2,13,150

 

BUSINESS DETAILS

 

Line of Business :

To construct, erect, build, repair, re-model, demolish, develop, improve and maintain buildings, structures, houses, apartments, hospitals, schools, places of worship, highways, roads, paths, streets, sideways, platforms, runways, courts, alleys, pavements and to other similar construction leveling.

 

GENERAL INFORMATION

 

No. of Employees :

124 persons -- 4 persons as office staff, 20 persons at sites and 100 persons on temporary basis

 

 

Bankers :

Bank of Maharashtra

Fort Branch, Mumbai – 400001 Maharashtra

 

 

Facilities :

SECURED LOANS

Rs. (in millions)

From Bank of Maharashtra in terms Loan A/C secured against Machinery and Guaranteed by Director in his personal capacity.

--

From bank of Maharashtra in cash credit Account Secured  against book debts and guranteed by a director in his personal capacity

8.746

From bank of Maharashtra in bill discount against inland L/C

4.914

Total

13.660

 

 

UNSECURED LOANS

 

From Shareholders

8.787

 

 

 

Banking Relations :

Unknown

 

 

Auditors :

M. Saboo and Company

Chartered Accountants

D-9/002, Yogi Nagar, Borivali (West), Mumbai – 400091, Maharashtra

Tel.No: 91-22-28980943/28983624

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

2,50,000

Equity Shares

Rs.10/- each

Rs. 2.500 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

213150

Equity Shares

Rs.10/- each

Rs. 2.131 millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2006

31.03.2005

31.03.2004

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

2.131

2.131

2.131

3] Reserves & Surplus

11.438

8.989

7.330
NETWORTH

13.569

11.120

9.461

LOAN FUNDS

 

 

 

1] Secured Loans

11.249

11.499

13.659

2] Unsecured Loans

7.929

6.584

8.787
TOTAL BORROWING

19.178

18.083

22.446

DEFERRED TAX LIABILITIES

0.720

1.412

1.255
 

 

 

 
TOTAL

33.467

30.615

33.162
 

 

 

 
APPLICATION OF FUNDS

 

 

 
 

 

 

 
FIXED ASSETS [Net Block]

8.849

11.386

7.900
Capital work-in-progress

0.000

0.000

0.000
 

 

 

 
INVESTMENT

0.000

0.000

0.000
DEFERREX TAX ASSETS

0.000

0.000

0.000
 

 

 

 
CURRENT ASSETS, LOANS & ADVANCES

 

 

 
 
Inventories

6.240

8.313

8.787
 
Sundry Debtors

26.755

26.507

24.183
 
Cash & Bank Balances

2.437

3.033

2.522
 
Loans & Advances

9.477

11.369

11.579
Total Current Assets
44.909

49.222
47.071
Less : CURRENT LIABILITIES & PROVISIONS
 

 
 
 
Current Liabilities

17.680

27.096

19.582
 
Provisions

2.611

2.897

2.227
Total Current Liabilities
20.291

29.993
21.809
Net Current Assets
24.618

19.229
25.262
 

 

 

 
MISCELLANEOUS EXPENSES

0.000

0.000

0.000
 

 

 

 
TOTAL

33.467

30.615

33.162

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

 

 

31.03.2004
Sales Turnover [including other income]

 

 

68.870
 

 

 

 
Profit/(Loss) Before Tax

 

 

2.177
Provision for Taxation

 

 

0.656
Profit/(Loss) After Tax

 

 

1.521
 

 

 

 
Import Value

 

 

38.398
 

 

 

 
Total Expenditure

 

 

66.693

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2006

31.03.2005

31.03.2004
PAT / Total Income
(%)

NA

NA

2.208
 
 

 

 

 
Net Profit Margin

(PBT/Sales)

(%)

NA

NA

3.020
 

 

 

 

 
Return on Total Assets

(PBT/Total Assets}

(%)

NA

NA

3.960
 

 

 

 

 
Return on Investment (ROI)

(PBT/Networth)

 

NA

NA

0.230
 

 

 

 

 
Debt Equity Ratio

(Total Liability/Networth)

 

2.91

4.32

4.677
 

 

 

 

 
Current Ratio

(Current Asset/Current Liability)

 

2.21

1.64

2.158

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Operations :

 

During the year the company earned a net profit of Rs. 2.177 millions from its operations

 

Fixed Assets :

 

Ř       Factory Shed

Ř       Plant and Machinery

Ř       Plant and Machinery

Ř       Furniture and Fixtures

Ř       Motor Car

Ř       Office Equipments

Ř       Computer

 

The company’s generic names of principal products/services is Civil Construction.

 

We visited the office of the company where following observations were carried on:-

 

Ř       Name Board could be sighted and the visibility of the Name Board is high.

Ř       The company’s office is located at an easy location.

Ř       Subject is located in a downmarket area.

Ř       Subject is situated in commercial locality.

Ř       Items such as Telephone, Fax Machine and Air Conditioner could be seen at the company’s office.

 

Form 8 Particular for creation or modification of charges 

Name of the company

ASPHALT CONSTRUCTIONS INDIA PRIVATE LIMITED

Presented By

Mr. Vinay kumar Jhunjhunwala

1) Date and description of instrument creating the change

Composite Deed of Hypothecation for all facilities dated 10.03.2000

2) Amount secured by the charge/amount owing on the securities of charge

Rs.26.075 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

First and exclusive charges and security by way of hypothecation security charges in favour of the Bank over the Borrower s present and future movables, Plants, Machineries, Goods, stock in process, semi finished and finished goods, stores and spares, stock in trade, goods in process movable in transit, Bills receivable and book debts and all the Borrower’s other movable assets and properties both present and future situated or located at any place and now lying, being  affixed or installed at any time and the borrower’s goodwill and all outstanding monies, claims receivables, book debts due or become due to the borrower at any time or from time to time and all of the Borrower’s rights, titles or interest therein goods under L.C.

4) Gist of the terms and conditions and extent and operation of the charge.

Details of Facilities

Cash credit against stock and Book Debts

Rs.8.600 millions

Term Loan

Rs.7.475 millions

Foreign LC

Rs.5.000 millions

Bank Guarantee 

Rs.5.000 millions

 

 

Margin

25%

Interest

17.85%

 

Repayment of term loan as per schedule and security to cover principal amount together with interest, cost and expenses etc.

5) Name and Address and description of the person entitled to the charge.

Bank of Maharashtra

Fort Branch,

Mumbai-400023

6) Date  and brief description of instrument modifying the charge

Composite deed of hypothecation for all facilities dated 11.04.2005

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.

Vide aforesaid agreement dated 11.04.2005 the following credit facilities aggregating to Rs.33.358 millions are sanctioned to the company by the aforesaid bank and hence present extend and operation of the charges is enhanced/modified upto Rs.33.358 milllions, the deatails of which are as under:

 

Cash credit against stock and Book Debts

Rs.12.000 millions

Import/ Inland LC

Rs.7.500 millions

Bank Guarantee 

Rs.5.000 millions

Term Loan

Rs.3.200 millions

Term Loan 2

Rs.2.300 millions

Letter of Credit (one time)

Rs.3.358 millions

 

 

Margin

25%

Interest

14.75% with monthly rest

 

Name of the company

ASPHALT CONSTRUCTIONS INDIA PRIVATE LIMITED

Presented By

Mr. Vinay kumar Jhunjhunwala

1) Date and description of instrument creating the change

Composite Deed of Hypothecation for all facilities dated 10.03.2000

2) Amount secured by the charge/amount owing on the securities of charge

Rs.26.075 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

First and exclusive charges and security by way of hypothecation security charges in favour of the Bank over the Borrower s present and future movables, Plants, Machineries, Goods, stock in process, semi finished and finished goods, stores and spares, stock in trade, goods in process movable in transit, Bills receivable and book debts and all the Borrower’s other movable assets and properties both present and future situated or located at any place and now lying, being  affixed or installed at any time and the borrower’s goodwill and all outstanding monies, claims receivables, book debts due or become due to the borrower at any time or from time to time and all of the Borrower’s rights, titles or interest therein.

4) Gist of the terms and conditions and extent and operation of the charge.

Details of Facilities

Cash credit against stock and Book Debts

Rs.8.600 millions

Term Loan

Rs.7.475 millions

Foreign LC

Rs.5.000 millions

Bank Guarantee 

Rs.5.000 millions

 

 

Margin

25%

Interest

17.85%

 

Repayment of term loan as per schedule and security to cover principal amount together with interest, cost and expenses etc.

5) Name and Address and description of the person entitled to the charge.

Bank of Maharashtra

Fort Branch,

Mumbai-400023

6) Date  and brief description of instrument modifying the charge

Composite deed of hypothecation for all facilities dated 12.05.2004

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.

Vide aforesaid agreement dated 12.05.2004 the following credit facilities aggregating to Rs.27.500 millions are sanctioned to the company by the aforesaid bank and hence present extend and operation of the charges is enhanced/modified upto Rs.27.500 milllions, the details of which are as under:

 

Cash credit against stock and Book Debts

Rs.10.000 millions

Bills Discounted under LC

Rs.5.000 millions

Foreign LC

Rs.7.500 millions

Bank Guarantee 

Rs.3.200 millions

 

 

Margin

25%

Interest

15% p.a. with monthly rest

 

AS PER WEBSITE

 

Thermoplastic Road Marking

 

Subject offers Thermoplastic Road Marking Systems. Pre-heating, and marking units are indirectly heated systems by thermal oil, thermal oil jacket around the pots ensure optimum heating. The system is also equipped with thermostatic control mechanism to get optimum heating of materials. Adequate heating of materials ensure good quality marking with desired retro reflectivity. Marking unit has a screed box and lines can be adjusted by the height of the sliding skids.

 

Marking unit is also equipped with an automatic glass bead dispensing gun PP-1030 type for dispensing widths of 10 to 30 cm and the dispensing quantity is infinitely adjustable. Power station attached to the 1000 kg. pre heater is 3 KW 1-cylinder Honda engine with hydraulic drive for the pre heater. Asphalt constructions also manufactures Milling Machines.

 

Milling machines are designed to remove carriageway pavements when repairing traffic areas of all kinds. The machine is operated by one driver who steers the machine. Set the required milling depth and monitors the transfer of milled material to a truck by a loading conveyor. This reclaimed material is so finely granulated that it can be reused to produce new asphalt in a mixing plant. The required milling depth can be set on both sides of the operator’s platform. Excellent performance and accurate results have ensured that milling machines have become established for maintaining roads throughout the world. Asphalt construction has carried out milling works of more than 1.0 million square meters for various clients like Municipal Corporations, Public Works Department Road Construction Contractors, Port Trusts etc.

 

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

 

 

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/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

 

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions