MIRA INFORM REPORT

 

 

Report Date :

18.07.2011

 

IDENTIFICATION DETAILS

 

Name :

ARCOTECH LIMITED

 

 

Registered Office :

181, Sector 3, Industrial Growth Centre, Bawal, District Rewari, Bawal-123 501, Haryana

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

13.08.1981

 

 

Com. Reg. No.:

05-12151

 

 

Capital Investment / Paid-up Capital :

Rs.200.000 Millions

 

 

CIN No.:

[Company Identification No.]

L34300HR1981PLC012151

 

 

PAN No.:

[Permanent Account No.]

AAACS2437G

 

 

Legal Form :

Public Limited Liability Company.  The company’s shares are listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturer of Copper and Brass Strips and Foils.

 

 

No. of Employees :

110 (Approximately) 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (45)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 1700000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments.

 

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

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – April 1, 2010

 

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INFORMATION PARTED BY

 

Name :

Mr. Shah

Designation :

Accountant

Contact No.:

91-9312880026

 

 

LOCATIONS

 

Registered Office/ Factory :

181, Sector 3, Industrial Growth Centre, Bawal, District Rewari, Bawal-123 501, Haryana, India

Tel. No.:

91-1284-264160 / 264161

Mobile No.:

91-9312880026 (Mr. Shah)

Fax No.:

91-1284-264022

E-Mail :

rp@arcotech.in

contact@arcotech.in

Website :

http://www.arcotech.in

http://www.indiamart.com/arcotechltd

Area :

25000 sq ft

Location :

Owned

 

 

Corporate Office :

F-701 A, Lado Sarai, New Delhi-110030, India

Tel. No.:

91 -11 - 29523251, 32503334

Fax No.:

91 -11 - 29523020

Area :

1000 sq ft

Location :

Rented

 

 

DIRECTORS

 

Name :

Mr. Arvind K. Saraf

Designation :

Chairman

 

 

Name :

Mr. R.N. Pattanayak

Designation :

Whole Time Director

 

 

Name :

Mr. Gautam Khaitan

Designation :

Director

 

 

Name :

Mr. R.D. Tayal

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Shah

Designation :

Accountant

 

 

Name :

Mr. Amit Sharma

Designation :

Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2011

 

Names of Shareholders

Total No. of Shares

Total Shareholding as a % of total No. of Shares

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

2,283,970

11.42

Bodies Corporate

10,504,562

52.52

Sub Total

12,788,532

63.94

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

12,788,532

63.94

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

44,000

0.22

Financial Institutions / Banks

6,900

0.03

Sub Total

50,900

0.25

(2) Non-Institutions

 

 

Bodies Corporate

4,490,782

22.45

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs.0.100 Million

920,454

4.60

Individual shareholders holding nominal share capital in excess of Rs.0.100 Million

1,734,823

8.67

Any Others (Specify)

14,509

0.07

Non Resident Indians

10,434

0.05

Clearing Members

4,075

0.02

Sub Total

7,160,568

35.80

Total Public shareholding (B)

7,211,468

36.06

Total (A)+(B)

20,000,000

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Copper and Brass Strips and Foils.

 

 

Products :

Product Description

Item Code

Copper Semis

74091100 / 7410110

Brass Semis

74092100

 

 

GENERAL INFORMATION

 

No. of Employees :

110 (Approximately) 

 

 

Bankers :

Punjab National Bank, International Banking Branch.

 

 

Facilities :

Secured Loan

As on 31.03.2010

(Rs. in Millions)

As on 31.03.2009

(Rs. in Millions)

From Punjab National Bank

 

 

Short Term Loan

(Secured by way of hypothecation charge on entire fixed and  current assets i.e. raw materials, finished

goods, semi finished goods, stores and book debts) (Repayable in full within one year)

151.593

0.000

Term Loan

(Secured by way of equitable mortgage / hypothecation of land, plant, buildings and machinery and others fixed assets of the Company.)

(Due within one year of Rs. 29.800 Millions)

144.860

5.400

Working Capital Limits

(Secured by way of hypothecation charge on entire current assets i.e. raw materials, finished goods, semi finished goods, stores and book debts.)

150.465

74.984

From Others

Vehicle Loan

Against Hypothecation of Vehicles

2.852

2.615

Total

449.770

82.999

 

 

 

Unsecured Loan

 

 

Fixed Deposits

2.393

2.393

Companies and Others

0.000

0.900

Total

2.393

3.293

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Shwetank Joshi and Company

Chartered Accountants

Address :

66, Ezra Street, Kolkata-700 001, West Bengal, India

 

 

CAPITAL STRUCTURE

 

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

35000000

Equity Shares

Rs.10/- each

Rs.350.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

20000000

Equity Shares

Rs.10/- each

Rs.200.000 Millions

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2010

31.03.2009

31.03.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

200.000

200.000

200.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

249.915

173.166

122.365

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

449.915

373.166

322.365

LOAN FUNDS

 

 

 

1] Secured Loans

449.770

82.999

56.514

2] Unsecured Loans

2.393

3.293

5.873

TOTAL BORROWING

452.163

86.292

62.387

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

902.078

459.458

384.752

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

323.141

137.329

142.665

Capital work-in-progress

41.680

24.423

1.939

 

 

 
 

INVESTMENT

0.000

15.500

15.500

DEFERREX TAX ASSETS

91.196

130.254

91.276

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
243.715

107.483
83.364

 

Sundry Debtors
243.900

48.883
22.396

 

Cash & Bank Balances
10.225

4.328
3.125

 

Other Current Assets
0.000

0.000
0.000

 

Loans & Advances
39.056

56.375
80.906

Total Current Assets
536.896

217.069

189.791

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
89.384

64.737

 

Other Current Liabilities
0.000

0.000
56.419

 

Provisions
1.451

0.380
0.000

Total Current Liabilities
90.835

65.117
56.419

Net Current Assets
446.061

151.952
133.372

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

902.078

459.458

384.752

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

930.950

462.610

269.379

 

 

Other Income

0.674

5.766

6.666

 

 

TOTAL                                     (A)

931.624

468.376

276.045

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Raw Material Consumed

759.863

400.787

245.146

 

 

Stores and Packing Material Consumed

9.958

1.940

1.357

 

 

Personnel Expenses

26.301

13.759

10.758

 

 

Other Expenses

60.575

24.796

16.117

 

 

Power and Fuel

28.402

16.937

14.722

 

 

Increase/ Decrease in Stocks

(118.085)

(20.427)

(33.600)

 

 

TOTAL                                     (B)

767.014

437.792

254.500

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

164.610

30.584

21.545

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

38.852

11.303

6.237

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

125.758

19.281

15.308

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

9.951

7.086

4.745

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

115.807

12.195

10.563

 

 

 

 

 

Less

TAX                                                                  (H)

39.058

(38.606)

(9.743)

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

76.749

50.801

20.306

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

9.185

NA

NA

 

 

Components and Spare Parts

0.000

NA

NA

 

 

Capital Goods

7.295

NA

NA

 

TOTAL IMPORTS

16.480

NA

NA

 

 

 

 

 

 

Earnings Per Share (Rs.)

3.84

NA

NA

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2010

30.09.2010

31.12.2010

31.03.2011

Type

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Net Sales

313.510

406.130

583.170

719.590

Total Expenditure

263.760

338.600

483.970

605.380

PBIDT (Excl OI)

49.750

67.530

99.200

114.2100

Other Income

0.850

0.450

0.360

1.720

Operating Profit

50.600

67.980

99.560

115.930

Interest

16.440

23.150

30.000

31.760

PBDT

34.160

44.830

69.560

84.170

Depreciation

3.940

4.0400

4.540

4.650

Profit Before Tax

30.220

40.780

65.020

79.530

Tax

0.000

0.000

0.000

73.840

Profit After Tax

30.220

40.780

65.020

5.690

Net Profit

30.220

40.780

65.020

5.690

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
8.23

10.85

76.36

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
12.44

2.64

3.92

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
13.47

3.44

3.18

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.26

0.03

0.03

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
1.21

0.41

0.37

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
5.91

3.33

3.36

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

BUSINESS AND OPERATIONS REVIEW

 

During the period the Company has installed various equipments and plant and machineries with a view to debottleneck the production process and to enhance the capacity utilization. The capex plan when completed will enhance the installed capacity to 24000 MTPA. The Company is now equipped to develop new product mix and achieve better capacity utilization. During the year 2009-10, they have added various new OEM clients of good repute.

 

In addition to focusing on developing high value items such as thin foils, narrow width strips and XLPE cable tapes; development of certain new product mix such as phosphorous bronze, cupro nickel and Nickel silver has successfully begun. The development of these special alloys would enable our Company in entering into diversified market segments such as electronic component, handicraft, telecom component, coinage industry etc. besides increasing its shares in torches, automobile locks, railway air-conditioning, wiring harness, radiators, lamp caps etc.

 

The Company is exploring export possibilities which have a huge potential of our products. Enhanced installed capacity would be earmarked for export market. The Company is in process of acquiring TS 16949:2004 which would enable us to cater to the automobile industries in America and Europe.

 

After witnessing steep fluctuation during the last quarter of previous financial year, the prices of copper and zinc have now stabilized. Looking at growth plans and projections for Indian GDP, the Company does not foresee any difficulty in accomplishing its targets.

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

Industry Scenario and Future Challenges

 

The year saw a stabled upward trend in the copper and zinc prices. Commensurate with the national and global predictions for the growth rate of economy, they expect healthy rising trend for the demand of their product. Automobile and Power sectors which are primary contributors to the growth of economy are their major customers. Therefore, they envisage steady and sustained growth rate for the current financial year.

 

 

FIXED ASSETS:

 

  • Freehold Land
  • Building
  • Plant and Machinery
  • Furniture and Fixture
  • Office Equipments
  • Vehicles

 

 

WEBSITE DETAILS:

 

PROFILE:

 

Subject was incorporated at New Delhi in 1981 for manufacturing internationally acceptable quality of Copper and Brass Strips and Foils.

 

The company is managed by a team of highly qualified and experienced professionals from the Non Ferrous Industry.

 

The Company established itself as one of the leading manufacturers of Copper/Brass Strips and Foils in the Country by constantly producing microthin foils up to 0.04 mm and strips with close tolerance.

 

In order to expand its existing facilities and to make best use of the technological advances of recent years the company has relocated itself to its modern factory premises at Bawal, Haryana.

 

Industrial Growth Centre, Bawal is conveniently located on the National Highway No. 8 and is only 60 kms from the Indira Gandhi International Airport at New Delhi. Industrial Growth Centre, Bawal is earmarked for large and strategic industries and is a showcase for Haryana Government .The leading automobile companies like Maruti Suzuki, Honda Motors, Hero Honda etc together with their ancillary units are in close proximity. Gurgaon the main hub for entire software and BPO industry is just 45 minutes drive from the factory.

 

 

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.44.53

UK Pound

1

Rs.71.90

Euro

1

Rs.62.97

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--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

NO

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

45

 

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

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

-

NB

                                       New Business

-

 

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.