MIRA INFORM REPORT

 

 

Report Date :

07.05.2007

 

IDENTIFICATION DETAILS

 

Name :

AKAR LIMITED

 

 

Formerly Known As :

AKAR PRINTERS LIN=MITED

 

 

Registered Office :

223/2234, Laxmi Plaza, New Link Road, Andheri (West), Mumbai – 400053, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

14.01.1987

 

 

Com. Reg. No.:

042216

 

 

CIN No.:

[Company Identification No.]

U22219MH1987PLC042216

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMA19880A

 

 

PAN No.:

[Permanent Account No.]

AAACA3955F

 

 

Legal Form :

Closely held Public Limited Liability Company

 

 

Line of Business :

Manufacture and Exporter of Paper Product

 

 

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 202356

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well – established and reputed company having satisfactory track. Directors are reported as experienced respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments.

 

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

 

 

LOCATIONS

 

Registered Office :

223/2234, Laxmi Plaza, New Link Road, Andheri (West), Mumbai – 400053, Maharashtra

Tel. No.:

91-22-26374053

Fax No.:

91-22-26312100

E-Mail :

ashokjain@akarweb.com

info@akarweb.com

 

 

DIRECTORS

 

Name :

Mr.Ashok Kumar Jain

Designation :

Managing Director

Address :

501 – Jeevan Anand, Oberoi Complex, New Link Road, Andheri (West), Mumbai – 400053, Maharashtra.

Date of Birth/Age :

20.02.1953

Date of Appointment :

14.01.1987

 

 

Name :

Mr. Sunil Gopal Shikarkhane

Designation :

Director

Address :

B – 204, Vastu Park Evershine Nagar, Linking Road, Malad(West), Mumbai – 400064, Maharashtra

Date of Birth/Age :

20.1201965

Date of Appointment :

03.04.1994

 

 

Name :

Mr. Rahul Ashok Jain

Designation :

director

Address :

501 – Jeevan Anand, Oberoi Complex, New Link Road, Andheri (West), Mumbai – 400053, Maharashtra.

Date of Birth/Age :

20.01.1983

Date of Appointment :

01.03.2004

 

 

Name :

Mr. Mahesh Jashvantrai Desai

Designation :

Director

Address :

603 /A, Green Field, Lokhandwala Complex, Andheri (West), Mumbai – 400053, Maharashtra

Date of Birth/Age :

26.11.1956

Date of Appointment :

31.03.2006

 

 

Name :

Mr. Haridwar Baaliram Shah

Designation :

Director

Address :

B – 803, Avun Majesty, Dattapada Road, Borivali (East), Mumbai – 400066, Maharashtra

Date of Birth/Age :

01.08.1958

Date of Appointment :

17.07.1992

 

Name :

Mr. Harsh Tolia

Designation :

Director

Address :

16, Hema Plot No. – 353, B – 38, Vallabh Baugh Lane, Ghatkoper (East), Mumbai – 400077, Maharashtra

Date of Birth/Age :

22.08.1949

Date of Appointment :

31.03.2006

 

 

Name :

Mr. Mahesh Deasi

Designation :

Director

Address :

603 /A, Green Field, Lokhandwala Complex, Andheri (West), Mumbai – 400053, Maharashtra

Date of Birth/Age :

26.11.1956

Date of Appointment :

31.03.2006

 

 

Name :

Mrs. Jyoti Jain

Designation :

Director

Address :

501 – Jeevan Anand, Oberoi Complex, New Link Road, Andheri (West), Mumbai – 400053, Maharashtra.

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Dated : 16th December, 1986

 

Names of Shareholders

 

No. of Shares

Mr. Ashok Kumar Jain

 

50

Mr. Shankerlal Kumawat

 

50

 

 

 

Category

 

Percentage of Holding

Director or relative of directors

 

100

 

BUSINESS DETAILS

 

Line of Business :

Manufacture and Exporter of Paper Product

 

 

Products :

Note books, Exercise Books, Drawing Books, Subject Note for School Students, Cube Block, Address Books, Legal Pads, Floral Pads, Multicolor Printed Cubes, Calenders, Dairies, Memos Reminders, Shopping Lists, Paper Napins, Guest Book

Exports :

 

Countries :

Hong Kong, Germany and United Kingdom

 

GENERAL INFORMATION

 

 

Bankers :

The bharat Co- operative Bank Limited, Andheri (west), Mumbai - 400058

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

Mr. S.N. Kankaria and Company

Address :

3, Veena Chamber, 21, Dalal Street, Mumbai – 400001, Maharashtra

 

 

Memberships :

IMC, IGCC and IAS

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

4000000

Equity Shares

Rs. 10/- each

Rs.40.000 million

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

3477950

Equity Shares

Rs. 10/- each

Rs. 34.779 million

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2006

31.03.2005

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

34.780

34.779

2] Share Application Money

 

0.000

0.000

3] Reserves & Surplus

 

15.809

16.226

4] (Accumulated Losses)

 

0.000

0.000

NETWORTH

 

50.589

51.005

LOAN FUNDS

 

 

 

1] Secured Loans

 

100.848

79.139

2] Unsecured Loans

 

4.693

0.820

TOTAL BORROWING

 

105.541

79.959

DEFERRED TAX LIABILITIES

 

14.276

13.776

 

 

 

 

TOTAL

 

170.406

144.74

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

108.035

111.166

Capital work-in-progress

 

0.318

0.302

 

 

 

 

INVESTMENT

 

0.105

0.105

DEFERREX TAX ASSETS

 

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

73.498

50.303

 

Sundry Debtors
 

16.128

24.166

 

Cash & Bank Balances
 

4.325

1.229

 

Other Current Assets
 

0.000

0.000

 

Loans & Advances
 

10.933

10.260

Total Current Assets
 

104.884

85.958

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
 

42.936

46.842

 

Provisions
 

0.000

5.949

Total Current Liabilities
 

42.936

52.791

Net Current Assets
 

61.948

33.167

 

 

 

 

MISCELLANEOUS EXPENSES

 

0.000

0.000

 

 

 

 

TOTAL

 

170.406

144.74

 

KEY RATIOS

 

PARTICULARS

 

 

 

31.03.2006

31.03.2005

Debt Equity Ratio

(Total Liability/Networth)

 
 

0.84

1.03

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

2.44

1.62

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Name of the company

AKAR LIMITED

Presented By

THE BHARAT CO-OPERATIVE BANK  LIMITED , Andheri (west), Mumbai – 400058

1) Date and description of instrument creating the change

19th  July, 1996

(a) Hypothecation of Tangible Movable Property

(b) Charge and Hypothecation of Book Debts (Both the above documents constitute a single charge)

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

Rs. 5.000 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

(a) Hypothecation of existing and proposed machineries, furniture, fixture, stock there of the time being whether raw or manufactured or in the process of manufacture and also all products, goods and any and every machinery, tool, tangible movable property of the borrower whether now lying or at any time hereafter during in or about the borrower’s premises and godown or wherever else the same may be.

(b) Hypothecation by way of first charge on all the outstanding book debts, money receivable, claim and approve book debts, due to the borrower’s and bills which are now due and owing or which may at any time hereafter during the continuance of  this security become due and owing to the borrower’s in the course of its business by any person firm company or by the Governments or any Local public body or authority

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

Interest at the rate of 19.50% p.a.

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

The Bharat Co-operative Bank (Mumbai) Limited, Borivili (West) Branch, B (6 to8) Mandpeshwar Idustrial Premises Cop Society Limited, Prem Nagar, S.V. Road, Borivili (West), Mumbai - 400092

6) Date  and brief description of instrument modifying the charge

1st June, 2005,

Memorandum of Entry Recording the Continuance of Deposit of Title Deeds.

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.

At the request of the Borrower Company, the Bank has sanctioned the banking limits as under:

Nature of Limit                         Amt in Rs.

Cash Credit Limits                      35.000 millions

Bank Guarantee Limit                 1.000 millions

Terms Loans (o/s bal)                  58.458 millions

                                    Total          94.458 millions  

To secure the due repayments of all the banking Limits together with interests, compound interest, additional penal interest, further interest, liquidated damages, commission, cost, charges, expenses and all other moneys payable by the Executants  to the Bank thereon under the letter of sanction at the request of the bank, the Borrower has extended the existing first charge on the following immovable property of the company as under :

(a)     Plot of land bearing plot No. 24, admeasuring about 1576 sq. mtrs bearing survey No. 260 Paiki, Shital Industrial Estate, Off Demni Road, at Village Dadra in the Union Territory of /dadra and Haveli, Taluka Silvassa – 396230 together with factory building consisting of Ground Floor, admeasuring 571.31 sq. mtrs, First floor admeasuring 573.69 sq. mtrs and second Floor admeasuring 546.26 sq.mtrs, four rooms constructed on the terrace.

 

(b)     Industrial Unit no 1/1 and 1\2, in all admeasuring 4080 sq. fts. situated on the Ground Floor together with Mezzanine Floor constructed thereon having built up area of 1500 sq. fts (carpet area) at ankur Industrial Estate, Plot No. 1, survey No. 260 (part), Sheetal Industrial Estate, Off Demni Road, at Vilage Dadra in the Union Territory of Dadra and Nagar Haveli, Taluka Silvassa.

 

(c)     Industrial Unit, admeasuring 6115 sq. fts. situated on the first floor of Ankur Industrial Estate Building No. 3, Survey no 260, Plot No. 1 of village Dadra in the Union Territory of Dadra and Nagar Haveli. Taluka Silvassa.

 

(d)     Unit No 223 and 224, admeasuring about 1000 sq .fts constructed on Plot No. 1, admeasuring 1700 sq. mts at survey no. 260, admeasuring 1700 sq. meters in the Union Territory of Dadra and Nagar Haveli.

 

(e)     Piece or parcel of non- agriculture vacant freehold land at plot No. 3/2, admeasuring 1,064 sq. mts. Bearing survey No. 260 (Part), lying, being and situate at Village Dadrs of Union Territory of Dadra and Nagar Haveli, Taluka Silvassa, together with factory building constructed thereon consisting of Ground Floor admeasuring 437050 sq. mtrs floor areas, fist floor admeasuring 437050 sq. mtrs floor area, terrace admeasuring 84.23 sq. mts. Together with permanently fastened to any thing attached to the said properties, fixture, fitting, etc erected or hereafter to be erected thereon both present and future.

 

Other terms and conditions as per loaning documents.

 

The banking Limited of the company are operated and controlled by Branch at Andheri (West) Branch at following

Address:

The Bharat Co- operative Bank (Mumbai) Limited, andheri (West0 Branch, B -  Plot No. 10, Opp Citi Mall, New Link Road, Andheri (West), Mumbai – 400058.

 

The total charge stand modified from Rs. 85.409 millions to Rs. 94.457 millions

 

 

Company Details:

Subject  has completed 25 years of journey in the Paper Product Manufacturing Industry. The company was founded in the year 1978 by its present Directors Mr. Ashok Jain and Mr. Haridwar Shah as a small enterprise "Print-Akar" in Mumbai. Starting as a company that only sourced print, they have come a long way facing formidable competition from other existing printing companies to establish a position for themselves in the market. They started their first factory in Mumbai in the year 1984 with entry level machines and equipments. The year 1993 proved to be very crucial as we built a 25000 sq.ft factory in the special zone in Dadra & Nagar Haveli. They invested on new machinery and shifted our focus from Commercial Printing to Promotional Product Manufacturing. In 2002-03 they added one more manufacturing facility of 40000 sq.ft for production of of Stationery Items for school, home and office use. In the same year, they  launched their products in the international market like Hong Kong, Germany and United Kingdom.

They also have more than 20 years of experience in Promotional Products for the Pharmaceutical Industry. They  have developed and marketed more than 1000 customised products. They  have printed Medical Books covering complete Human Anatomy. The news and information related to the latest Medical Research and Development are printed in the form of Journals for the Medical fraternity

Quality Assurance
Their products are manufactured with the latest print technology. They strongly believe that the best quality products come from the best raw materials. They also focus on raw material development in  association with leading Paper Mills and other manufacturers. All their products are of wood free pulp which is environment friendly. In order to protect our precious environment, they are dedicated to use environment friendly processes and technologies.

Infrastructure
They  have two manufacturing plants located at Dadra (Union Territory of Dadra and Nagar Haveli) and the other  at the Gujarat-Maharashtra border. Their production process is vertically integrated, having modern design studio, pre-press set-up, printing, finishing, and binding. They use the latest generation Scanners, Image Setters and Color Outputting and Proofing Devices.  They have a modern office in the heart of the vibrant city of Mumbai, they also have a huge production area and a large warehouse to store 1500 tones of raw material and finished products. Their team of 40 trained managers, supervisors and office staff work with the sole mission of delivering quality products at competitive prices promptly. They combine technology with highly skilled human resources for making quality products. The human resource is always upgraded by continuous training and motivation.

 

 

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.40.91

UK Pound

1

Rs.81.46

Euro

1

Rs.55.42

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

46

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/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

 

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