MIRA
INFORM REPORT
|
Report Date : |
02.10.2007 |
IDENTIFICATION DETAILS
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Name : |
ASHAPURA
VOLCLAY LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
15.04.1997 |
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Com. Reg. No.: |
107300 |
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CIN No.: [Company
Identification No.] |
U14108MH1997PTC107300 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
RKTA00057B |
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Legal Form : |
Closely
Held Public Limited Liability Company |
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Line of Business : |
Producer of Activated Bleaching Earth. |
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
1303228 |
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Status : |
Good |
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Payment Behaviour : |
Usually
correct |
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Litigation : |
Clear |
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Comments : |
Subject
has been promoted by Ashapura Minechem Limited and Volclay International, Available
information indicates high financial responsibility of the company. Trade relations are fair. The company is expected to wipe out
previous losses in near future.
Payments are correct and as per commitments. The
company can be considered good for normal business dealings at usual trade
terms and conditions. |
LOCATIONS
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Registered / Corporate Office : |
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Tel. No.: |
91-22-66651700 |
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Fax No.: |
91-22-22079395
/ 22074452 |
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E-Mail : |
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Website : |
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Factory
: |
Village
Ler, Near Bhujodi, Off |
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Tel.
No.: |
91-2832-240301/240302/242032-33 |
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Fax
No.: |
91-2832-240303 |
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E-Mail
: |
DIRECTORS
|
Name : |
Mr.
Navnitlal Ratanji Shah |
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Designation : |
Director
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Address : |
131,
New Summer Ville, 13th Floor, Opposite National Garage, Bhulabhai
Desai Road, Mumbai – 400026, Maharashtra, India |
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Date of Birth/Age : |
17.08.1926 |
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Date of Appointment : |
15.04.1997 |
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Name : |
Mr.
Chetan Navnitlal Shah |
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Designation : |
Director
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Address : |
Wyoming
Cooperative Housing Society Limited, 4th Floor, Flat No. 4, 12A,
Little |
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Date of Birth/Age : |
28.01.1955 |
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Date of Appointment : |
15.04.1997 |
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Name : |
Ms.
Anita Hormusji Burjor |
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Designation : |
Director
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Address : |
72
Ocean View, |
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Date of Birth/Age : |
22.02.1933 |
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Date of Appointment : |
31.10.2000 |
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Name : |
Mr.
Piyush Arun Vora |
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Designation : |
Director
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Address : |
16,
Girnar Appartment, |
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Date of Birth/Age : |
30.12.1961 |
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Date of Appointment : |
15.03.1999 |
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Name : |
Mr.
Ashok Manilal Kadakia |
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Designation : |
Director |
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Address : |
211
Grand Paradi, Kempes Corner, Mumbai – 4000036, |
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Date of Birth/Age : |
07.06.1942 |
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Date of Appointment : |
31.10.2000 |
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Name
: |
Ms.
Larry Washow |
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Designation
: |
Director
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Address
: |
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Date
of Birth/Age : |
15.09.1953 |
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Date
of Appointment : |
27.01.2000 |
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Name
: |
Mr.
Rayan McKendrick |
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Designation
: |
Director
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Address
: |
1258,
Ashbury Wilmett, Ilinois – 60093, |
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Date
of Birth/Age : |
14.12.1951 |
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Date
of Appointment : |
25.07.2002 |
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Name
: |
Mr. Gary
Francesco Castagna |
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Designation
: |
Director |
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Address
: |
198, |
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Date
of Birth/Age : |
24.07.1961 |
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Date
of Appointment : |
24.09.2001 |
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Name
: |
Mr.
Gary Denzil Morrison |
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Designation
: |
Director |
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Name
: |
Ms.
Mona N. Patel |
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Designation
: |
Company
Secretary |
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Name
: |
Ms.
Dipti Gohil |
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Designation
: |
Secretary
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Address
: |
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Date
of Birth/Age : |
29.10.1974 |
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Date
of Appointment : |
02.05.2006 |
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Pan
No. : |
AEGPG1265D |
MAJOR
SHAREHOLDERS
|
Names
of Shareholders |
|
No. of Shares |
|
Ashapura
Minechem Limited |
|
8966590 |
|
Volclay
International Corporation |
|
8966590 |
BUSINESS
DETAILS
|
Line of Business : |
Producer of Activated Bleaching Earth. |
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Products : |
Bleaching
Earth |
PRODUCTION
STATUS
|
Particulars |
|
Unit |
Installed Capacity |
Actual Production |
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Bleaching Earth |
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MTs. |
30000 |
9861 |
GENERAL INFORMATION
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No. of Employees : |
About
1500 |
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Bankers : |
Union Bank of Mumbai Samachar Marg Branch, 66/80, Mumbai Samachar Marg, Fort, Mumbai
– 400023 |
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Banking Relations : |
Satisfactory
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Auditors : |
Sanghavi
& Company Chartered
Accountants, Bulbul,
1st Floor, Crescent Road, |
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Tel. No.: |
91-278-2423434 |
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Subsidiaries : |
Ashapura
Volclay Chemicals Private Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
20000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 200.000 millions |
|
10000 |
11%
Cumulative Redeemable Preference Shares |
Rs. 100/- each |
Rs. 1.000 millions |
|
|
TOTAL |
|
Rs. 201.000
millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
17933180 |
Equity
Shares |
Rs. 10/- each |
Rs. 179.332 millions |
FINANCIAL
DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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|
SHAREHOLDERS
FUNDS |
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|
|
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1]
Share Capital |
179.332 |
179.332 |
179.332 |
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2]
Share Application Money |
0.000 |
0.000 |
0.000 |
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3]
Reserves & Surplus |
146.475 |
80.595 |
18.763 |
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4]
(Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
325.807 |
259.927 |
198.095 |
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LOAN
FUNDS |
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|
|
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1]
Secured Loans |
358.703 |
349.068 |
225.968 |
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2]
Unsecured Loans |
0.000 |
10.016 |
0.000 |
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TOTAL BORROWING |
358.703 |
359.084 |
225.968 |
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DEFERRED
TAX LIABILITIES |
41.264 |
32.207 |
20.436 |
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TOTAL |
725.774 |
651.216 |
444.499 |
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APPLICATION
OF FUNDS |
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FIXED
ASSETS [Net Block] |
582.581 |
396.302 |
347.031 |
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Capital
work-in-progress |
5.350 |
180.686 |
0.000 |
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INVESTMENT |
2.000 |
2.000 |
2.000 |
|
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DEFERREX
TAX ASSETS |
0.000 |
0.000 |
0.000 |
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|
|
|
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|
|
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CURRENT
ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
94.241
|
51.816 |
28.786 |
|
|
Sundry
Debtors |
97.856
|
63.841 |
57.735 |
|
|
Cash
& Bank Balances |
14.974
|
11.613 |
9.099 |
|
|
Other
Current Assets |
0.000 |
0.000 |
0.000 |
|
|
Loans
& Advances |
38.355
|
31.648 |
23.483 |
|
Total Current
Assets |
245.426
|
158.918 |
119.103 |
|
|
Less : CURRENT LIABILITIES &
PROVISIONS |
|
|
|
|
|
|
Current
Liabilities |
115.908
|
98.575 |
41.185 |
|
|
Provisions |
0.000 |
0.000 |
0.000 |
|
Total Current
Liabilities |
115.908
|
98.575 |
41.185 |
|
|
Net Current Assets |
129.518
|
60.343 |
77.918 |
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|
|
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MISCELLANEOUS
EXPENSES |
6.325 |
11.885 |
17.550 |
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|
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|
|
|
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TOTAL |
725.774 |
651.216 |
444.499 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales
Turnover |
439.813 |
331.751 |
248.592 |
|
|
Other Income |
1.216 |
2.590 |
0.000 |
|
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Total
Income |
441.029 |
334.341 |
248.592 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
99.608 |
69.035 |
39.228 |
|
|
Provision for Taxation |
12.272 |
6.754 |
3.050 |
|
|
Profit/(Loss) After Tax |
87.336 |
62.281 |
36.178 |
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|
|
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|
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Expenditures : |
|
|
|
|
|
|
Change in Inventories |
(34.623) |
(5.713) |
|
|
|
Material Manufacturing Expenses |
228.550 |
153.719 |
|
|
|
Selling and Administration Expenses |
89.517 |
73.377 |
|
|
|
Interest |
23.605 |
17.315 |
209.365 |
|
|
Depreciation & Amortization |
28.811 |
20.943 |
|
|
|
Other Expenditure |
5.560 |
5.664 |
|
|
Total
Expenditure |
341.421 |
265.306 |
209.365 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT /
Total Income |
(%) |
19.80
|
18.62 |
14.55 |
|
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|
|
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|
Net Profit Margin (PBT/Sales) |
(%) |
22.64
|
20.80 |
15.78 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
12.02
|
12.43 |
8.42 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.30
|
0.26 |
0.20 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.45
|
1.76 |
1.35 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.11
|
1.61 |
2.89 |
LOCAL AGENCY FURTHER INFORMATION
The
company’s plan to venture in to coal gas producer plant, acid dilution plant
and ammonium alum plant are important avenue for margin growth. The company is adding new clients on a
regular basis. The outlook for the
current year looks very promising.
Fixed
Assets
Ż
Building
Ż
Furniture & fixtures
Ż
Plant & machinery
Ż
Office Equipments
Ż
Vehicles
|
Name of the company |
ASHAPURA VOLCLAY LIMITED |
|
Presented By |
Union Bank of |
|
1) Date and description of instrument creating the change |
Agreement of hypothecation [Foreign Currency Loan] dated : 19.07.2004 |
|
2) Amount secured by the charge/amount owing on the securities of charge |
US$ 2293479/- equivalent to approx. Rs. 105.500 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 by way of first charge in favour of the Bank ranking pari passu with IDBI on the company’s fixed assets lying at their premises at Village Ler, Bhuj, Kutch and/or in transit or wherever else they may be |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Interest at the rate of 550% points over LIBOR rate fixed at six monthly intervals with quarterly rests in US Dollars and/or at such other rests as may be prescribed by the bank from time to time The outstandings under FCL including principal, interest and costs repayable in US Dollars within 180 days from the date of disbursal of the FCL In case of borrower defaults to repay the FCL together with interest within 180 days, the bank shall at its option may convert the outstandings under the foreign currency loan into Indian Rupees at the rate of exchange prevailing on the 180th day or on the last day of extended period and the borrower shall accept his liability to repay the outstanding in Indian Rupees as informed by the bank and forthwith repay the same and till then outstanding under FCL shall stand secured and charged by the securities mentioned in column No. 3, above. |
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5) Name and Address and description of the person entitled to the charge. |
Union Bank of Mumbai Samachar Marg Branch, 66/80, Mumbai Samachar Marg, Fort, Mumbai – 400023 |
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6) Date and brief description of instrument modifying the charge |
N.A. |
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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. |
N.A. |
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Name of the company |
ASHAPURA VOLCLAY LIMITED |
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Presented By |
Union Bank of |
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1) Date and description of instrument creating the change |
Hypothecation agreement of goods, debts and assets dated : 12.07.2001 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 69.500 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 by way of first charge in favour of the Bank – [i] Raw materials, goods in process and finished goods belonging to the borrower and lying at their premises and godowns at Bhuj [Gujarat] and at other centres in the Union of India and all other places of storage [ii] The borrowers book-debts, outstandings, monies, receivables, claims and bills which are now due and owing or which may at any time hereafter during the continuance of this security becoming due and owing to the borrower in the course of its business by any person or party including any Government or any local or public body or authority. [iii] Goods meant for export [iv] Plant and machinery acquired out of Term loan |
||||||||||||
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Interest at the rate of 2.75% / 3.50% p.a. above the prime lending rate for Demand Loans from time to time or at any rate as may from time to time be fixed by the bank and notified to the borrower for the various facilities aggregating to Rs. 69.500 millions granted by the bank to the company Margin : 25% against stocks and 40% against book debts |
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5) Name and Address and description of the person entitled to the charge. |
Union Bank of Mumbai Samachar Marg Branch, 66/80, Mumbai Samachar Marg, Fort, Mumbai – 400023 |
||||||||||||
|
6) Date and brief description of instrument modifying the charge |
Agreement of modification [foreign currency loan] Dated : 19.12.2003 |
||||||||||||
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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. |
The original charge dated 12.07.2001 for Rs. 69.500 millions has been modified as under :- At the request of the borrower the bank has converted in part the rupee component of Rs. 20 millions into US$ 439850.45 out of the cash credit facility of Rs. 35 millions more particularly described in the table hereunder written which is secured by way of first charge against hypothecation of the borrowers raw materials, stock in process, finished goods, consumables, receivables
FCL of US$ 439850.45 repayable within 180 days with interest at 4.5% over LIBOR rate fixed at 6 monthly intervals. The outstanding under FCL credit facility including principal and interest repayable within 180 days from the date of disbursal of the loan under FCL credit facility. |
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WEBSITE DETAILS
Company Profile
Ashapura Volclay
Limited (AVL), an Indo-American-Japanese joint venture, has been established
to set up a state-of-the-art plant to manufacture Acid Activated Bleaching
Earth in
Ashapura Volclay
Limited - The Inception
With the opening up
of the Indian economy, AMCOL International Corporation of
Volclay International
(VI), as AMCOL's investment arm, entered into a Joint Venture with Ashapura
Minechem Limited (AML). Ashapura Voclay Limited (AVL) was thus setup to reap
the benefits of the combined resources of both groups.
The Joint Venture is engaged in the following activities:
- Manufacture of
value added Bentonite products.
- Supply of high quality, value added
Bentonite products like acid activated Bleaching Earth to various
industries in
- Export of
Bentonite Products including Bleaching Earth.
This alliance has
given AMCOL's international marketing expertise and Mizusawa's technological
inputs to the Indian business, helping it to produce superior quality products
to displace those currently being imported in
Over the years,
various new Bentonite products have been developed and new end applications for
these products have been identified. Bleaching Earth is one of the main value
added Bentonite products to be manufactured under the umbrella of the Joint
Venture. Bleaching Earth is widely used as a refining agent for various animal
and vegetable oils, fats, fatty acids, lubricating oils and waxes.
The technology
required for this product is available with very few companies in the world. A
Technology License Agreement has been entered into with Mizusawa Industrial
Chemicals Limited (MICL) of
Ashapura Volclay
Limited - GCL Division
Ashapura Volclay
Limited (AVL), a joint venture between Ashapura Minechem Limited (the flagship
company of the Ashapura Group) and Volclay International (the investment arm of
The Stakeholders
Ashapura Minechem
Limited (AML), a company incorporated in 1982, under the Indian Companies Act,
1956, is listed on the Mumbai,
AML is the largest
mine owner, organized producer & exporter of Bentonite in
Through continuous
research & development, AML has produced a number of value added Bentonite
products which are used in various industries such as oil well drilling, iron
& steel foundry, oil bleaching, iron ore pelletization, civil engineering,
ceramics, agriculture feed, etc. AML's products are exported to 23 countries in
all continents and account for nearly 84% of the Bentonite product exports from
Volclay
International (VI), is a company registered in
American Colloid
Company (ACC), an AMCOL Group Company, is the world's largest producer and
exporter of Bentonite products. ACC produces and supplies Bentonite products to
all end use markets and possesses highly developed technology to process and
produce superior quality, value added Bentonite products. The other operations
of AMCOL Group include Bentonite-based additives, environmental technology
products and transportation. AMCOL group has plants, mines and other facilities
in U.S. A.,
Technical
Arrangement
Mizusawa Industrial
Chemicals Limited,
It must be mentioned
that this is the first time Mizusawa has given technology and use of its brand
name anywhere outside
Marketing
Arrangement
Mitsubishi
Corporation of
Traditionally
classified as a general trading company, the Mitsubishi Corporation of today is
active in fields that extend well beyond the realm of trade. Mitsubishi has
persisted with the policy of complementing trading capabilities with business
investments to yield higher returns. Considerable weight is given to
capitalizing on emerging opportunities created by deregulation, diversifying
customer needs, social change, and other events. The objective of these actions
is to improve services for clients around the world and meet the expectations
of the investors.
Mitsubishi
Corporation has a network of 188 overseas branches in addition to the 50
domestic branches. The organisation comprises of the following groups, each of
which specializes in the respective field:
- Information
Systems and Services Group
- Fuels Group
- Metals Group
- Machinery Group
- Chemicals Group
- Foods, Textiles
and General Merchandise Group
A well diversified
business and strong marketing network worldwide, makes Mitsubishi Corporation
the obvious choice as a partner for marketing the GALLEON BRAND across the
globe.
CMT
REPORT [Corruption,
Money laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts,
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.45.01 |
|
|
1 |
Rs.84.91 |
|
Euro |
1 |
Rs.57.48 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
4 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
49 |
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/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 |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|