MIRA
INFORM REPORT
|
Report Date : |
30.05.2011 |
IDENTIFICATION DETAILS
|
Name : |
AKAR TOOLS LIMITED |
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Registered
Office : |
304 Abhay Steel House, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
21.06.1989 |
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Com. Reg. No.: |
052305 |
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Paid up Capital
: |
Rs. 53.940 Millions |
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CIN No.: [Company Identification
No.] |
L29220MH1989PLC052305 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
NSKA03275G |
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PAN No.: [Permanent Account No.] |
AAACA4261G |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
Stock Exchange. |
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Line of Business
: |
Manufacturer,
Exporter of Piston Crankshaft Assemblies, Hand Tools, Auto Service Equipment
and Pipe Fittings Flanges |
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No. of Employees:
|
Not Divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
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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 749240 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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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
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.
INFORMATION DECLINED BY
Management Non Co Operative (Name Not Disclosed)
LOCATIONS
|
Registered Office : |
304 Abhay Steel House, |
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Tel. No.: |
91-22-23481083/23481084/23484886 |
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Fax No.: |
91-22-23483887 |
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Email: |
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Corporate Office/Factory : |
E-5, MIDC Area, Waluj, |
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Tel. No.: |
91-240-2554686/87 |
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Fax No.: |
91-240-2554640 |
DIRECTORS
AS ON 31.03.2010
|
Name : |
Mr. R.L. Gupta |
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Designation : |
Chairman |
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Date of Birth/Age : |
31.03.1933 |
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Date of Appointment : |
21.06.1989 |
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Name : |
Mr. Sunil Todi |
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Designation : |
Managing Director |
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Name : |
Mr. N.K. Gupta |
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Designation : |
Director |
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Date of Birth/Age : |
31.03.1959 |
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Date of Appointment : |
21.06.1989 |
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Name : |
Mr. R. Machhar |
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Designation : |
Director |
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Name : |
Mr. Atul M. Desai |
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Designation : |
Director |
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Date of Birth/Age : |
27.01.1950 |
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Date of Appointment : |
31.03.2006 |
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Name : |
Mr. C.K.R. Murugan |
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Designation : |
Director |
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Date of Birth/Age : |
15.10.1936 |
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Date of Appointment : |
31.03.2006 |
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Name : |
Mr. P. M. Nijampurkar |
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Designation : |
Director |
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Name : |
Mr. Sunil Todi |
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Designation : |
Director |
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Date of Birth/Age : |
29.09.1963 |
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Date of Appointment : |
30.09.2005 |
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Name : |
Mr. Ravi Machhar |
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Designation : |
Director |
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Date of Birth/Age : |
26.02.1952 |
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Date of Appointment : |
10.11.1940 |
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Name : |
Mr. Pradeep Nijampurkar |
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Designation : |
Director |
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Date of Birth/Age : |
13.07.1958 |
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Date of Appointment : |
31.07.2007 |
KEY EXECUTIVES
|
Name : |
Mr. Bipin C. Gupta |
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Designation : |
Company Secretary |
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Date of Appointment : |
31.03.2006 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2010
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of promoters and Promoter Group |
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1. Indian |
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Individuals / Hindu Undivided Family |
2963935 |
54.95 |
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Bodies Corporate |
1275398 |
23.64 |
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(B) Public
Shareholding |
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1. Institutions |
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Mutual Funds / UTI |
900 |
0.02 |
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2. Non
Institutions |
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Bodies Corporate |
460710 |
8.54 |
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Individual shareholders holding nominal share capital up to Rs. 0.100
million |
513103 |
9.51 |
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Individual shareholders holding nominal share capital in excess of Rs.
0.100 million |
154775 |
2.87 |
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Any Other
(Specify) |
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Clearing Members |
607 |
0.01 |
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Non Resident Indians |
24577 |
0.46 |
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Shares
held by custodians and against which depository receipts have been
issued (C) |
-- |
-- |
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Total (A) + (B) +(C) |
5394005 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer,
Exporter of Piston Crankshaft Assemblies, Hand Tools, Auto Service Equipment
and Pipe Fittings Flanges. |
GENERAL INFORMATION
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No. of Employees: |
Not Divulged |
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Bankers : |
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Facilities : |
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Banking
Relations : |
--- |
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Auditors : |
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Name : |
Hemant J. Vora and Company Chartered Accountant |
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Address: |
C 44, Padma Nagar, Mohan Studio Compound, Andheri Kurla Road, Andheri
(East), Mumbai 400099, Maharashtra, India |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
7,000,000 |
Equity Shares |
Rs.10/- each |
Rs. 70.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
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|
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|
5,394,005 |
Equity Shares |
Rs.10/- each |
Rs. 53.940 Millions |
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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 |
53.940 |
53.940 |
53.940 |
|
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
133.370 |
120.493 |
122.790 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
187.310 |
174.433 |
176.730 |
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LOAN FUNDS |
|
|
|
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1] Secured Loans |
395.412 |
382.832 |
337.470 |
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2] Unsecured Loans |
25.000 |
30.279 |
30.290 |
|
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TOTAL BORROWING |
420.412 |
413.111 |
367.760 |
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DEFERRED TAX LIABILITIES |
43.291 |
41.286 |
30.710 |
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TOTAL |
651.013 |
628.830 |
575.200 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
353.871 |
366.750 |
286.800 |
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Capital work-in-progress |
0.000 |
0.444 |
37.250 |
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INVESTMENT |
11.623 |
21.623 |
21.620 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
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Inventories |
224.119
|
199.562 |
162.140 |
|
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Sundry Debtors |
208.904
|
165.071 |
136.400 |
|
|
Cash & Bank Balances |
24.198
|
14.435 |
17.070 |
|
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Other Current Assets |
0.000
|
0.000 |
0.500 |
|
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Loans & Advances |
40.243
|
37.297 |
39.710 |
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Total
Current Assets |
497.464
|
416.365 |
355.820 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
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Sundry Creditors |
194.211
|
163.892 |
108.777 |
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Other Current Liabilities |
4.240
|
4.200 |
1.783 |
|
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Provisions |
13.494
|
8.260 |
15.730 |
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Total
Current Liabilities |
211.945
|
176.352 |
126.290 |
|
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Net Current Assets |
285.519
|
240.013 |
229.530 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
651.013 |
628.830 |
575.200 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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|
|
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Sales & Other Income |
1135.341 |
896.892 |
788.730 |
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TOTAL (A) |
1135.341 |
896.892 |
788.730 |
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Less |
EXPENSES |
|
|
|
|
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Raw Material Consumed |
596.345 |
458.458 |
350.010 |
|
|
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Other Expenses |
368.610 |
275.342 |
377.580 |
|
|
|
Taxes and Duties |
87.560 |
97.770 |
0.000 |
|
|
|
Increase/(Decrease) in stock |
(23.747) |
(16.829) |
(11.230) |
|
|
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TOTAL (B) |
1028.768 |
814.741 |
716.360 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
106.573 |
82.151 |
72.370 |
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Less |
FINANCIAL
EXPENSES (D) |
46.307 |
44.143 |
24.410 |
|
|
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|
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|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
60.266 |
38.008 |
47.960 |
|
|
|
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|
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
26.328 |
21.421 |
14.070 |
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|
PROFIT BEFORE
TAX (E-F) (G) |
33.938 |
16.587 |
33.890 |
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Less |
TAX (I) |
13.484 |
12.570 |
10.980 |
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PROFIT AFTER TAX
(G-I) (J) |
20.454 |
4.017 |
22.910 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
44.610 |
48.406 |
NA |
|
|
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|
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|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
1.500 |
1.500 |
NA |
|
|
|
Dividend Distribution Tax |
1.100 |
0.916 |
NA |
|
|
|
Proposed Dividend |
6.472 |
5.394 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
55.992 |
44.613 |
NA |
|
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|
|
|
|
|
|
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|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
416.500 |
257.256 |
300.551 |
|
|
|
|
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|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
0.000 |
28.351 |
0.000 |
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
3.79 |
0.74 |
-- |
|
QUARTERLY RESULTS
(UNAUDITED)
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
297.700 |
348.910 |
331.150 |
338.470 |
|
Total Expenditure |
267.400 |
316.700 |
301.790 |
302.310 |
|
PBIDT (Excl OI) |
30.300 |
32.210 |
29.360 |
36.160 |
|
Other Income |
0.000 |
0.000 |
0 |
0 |
|
Operating Profit |
30.300 |
32.210 |
29.360 |
36.160 |
|
Interest |
11.600 |
11.710 |
12.030 |
12.290 |
|
Exceptional Items |
0.000 |
0.000 |
0 |
0 |
|
PBDT |
18.700 |
20.500 |
17.330 |
23.870 |
|
Depreciation |
5.560 |
5.750 |
5.830 |
5.940 |
|
Profit Before Tax |
13.140 |
14.750 |
11.500 |
17.930 |
|
Tax |
2.230 |
2.510 |
1.960 |
12.710 |
|
Provisions and Contingencies |
0.000 |
0.000 |
0 |
0 |
|
Profit After Tax |
10.910 |
12.240 |
9.550 |
5.220 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
1.80
|
0.44 |
2.90 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.98
|
1.84 |
4.29 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.98
|
2.11 |
5.27 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.18
|
0.09 |
0.19 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.37
|
3.37 |
2.79 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.34
|
2.36 |
2.81 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS
Rs. In Millions
|
Particulars |
31.03.2010
|
31.03.2009 |
31.03.2008 |
|
Sundry Creditors |
194.211
|
163.892 |
108.777 |
Operations
Net sales turnover
was Rs.1135.341 millions as compared with Rs. 896.893 millions during 2008-09. The
profit efore tax during 2009-10 was at Rs. 33.936 millions (Previous Year
16.586 millions) All expansion programs under progress
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Industry structure
and Developments
The world economy witnessed signs of recovery from one of worst global
recession. The automobile industry and
auto component sector also, shown strong recovery from the recession
which was suffered badly during the recession. Strong recovery of automobile
industry and auto component sector is positive and good indication for the
Company. Banks and financial institution attitude has also become positive
after the recovery from recession. Your Company definitely got benefited from
the improvement of automobile industry and auto component sector and results an
increased sales turnover. Your Directors are confident that the year ahead the
operation of the Company will be healthy and good. The Company anticipates that
all the measures taken will help to maintain the profitability and growth.
Outlook
With the sign of revival of economy and due to recent demand pick up in
near term, the outlook is fairly good. Today also the Company is having a good
amount of backlog of orders and, therefore, the management is very
confident about the prospects of the Company.
Discussion on the
financial performance
During the year the sales turnover of the Company increased from Rs.
896.893 millions to Rs. 1135.341 millions registering a fair improvement and
growth by 27% as compared with the previous fiscal. The profit before tax of
the current financial year was Rs. 33.936 as against Rs. 16.586 millions. The profit before tax is
almost twice vis-ŕ-vis previous financial year.
Fixed Assets
- Goodwill
- Land
- Building
- Plant and Machinery
- Electrical Installation
- Vehicles
- Office Equipment
- Furniture and Fixtures
- Computer
FORM 8
|
Corporate
identity number of the company |
L29220MH1989PLC052305 |
|
Name of the
company |
AKAR TOOLS LIMITED |
|
Address of the registered
office or of the principal place of
business in |
304 Abhay Steel House, Baroda Street, Carnac Bunder, Mumbai – 400009,
Maharashtra, India |
|
This form is for |
Modification of
charge |
|
Type of charge |
Immovable property
Book debts Movable property
(not being pledge) Floating charge |
|
Particular of
charge holder |
Canara Bank, Shahaganj Branch, Aurangabad 431001, Maharashtra, India Email: cb0233@canarabank.com |
|
Nature of
instrument creating charge |
1. Supplemental
Common Hypothecation Agreement. 2. Letter
evidencing Deposit of Title Deeds Both dt.29.04.11
and constitute for single charge. |
|
Date of
instrument Creating the charge |
29.04.2011 |
|
Amount secured by
the charge |
Rs. 513.000
millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of interest Interest rate for
OCC/ODBD 14.25 p.a. and for PC 10% floating subject to changes made by the
Bank / RBI from time to time. In default penal
interest 2% p.a. Margin 25 % for OCC/ODBD
and 10% for PC/PCFC. Extent and operation of the charge Till repayment. Other Personal
guarantee of Directors and Guarantors. |
|
Short particulars
of the property charged (Including location of the property) |
Hypothecation and
first charge on assets described in Common Hypothecation Agreement
dt.22.01.2004 and securities described in Schedule II of present agreement
i.e. raw material, work in progress, finished such as spanners, wrenches, hacksaw, pliers, chisel etc. Book
Debts and all current assets and entire fixed assets including fittings,
fixtures, tools, accessories, implements etc. Charge on
immovable properties together with all building structures fittings, machineries,
standing / installed thereon or to be erected/installed on immovable
properties 1. Plot No.C-5
adm. 4950 sq.mtrs. at Waladgaon, MIDC, Waluj, Aurangabad 2. Plot No.C-6
adm. 4950 sq.mtrs. at Waladgaon, MIDC, Waluj, Aurangabad 3. Gut No.25, Old
Survey No.13(a) - 47R, at Majue : Chitegaon, Tq.Paithan, Dist.Aurangabad. 4. Gut No.24, Old
Survey No.12 - 3 H 65R at Chitegaon, Tq.Paithan, Dist.Aurangabad. 5. Plot No.C-5(E)
adm. 16096 sq.mtrs. at Waluj, MIDC, Aurangabad 6. Plot No.45/46 adm.
4200 sq.mtrs. at Chikalthana,
Aurangabad |
|
Date of
instrument modifying the charge |
12.03.2009 |
|
Particulars of
the present modification |
By present
agreements the charge stands, modified to Rs.513.000 millions. |
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 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.45.21 |
|
|
1 |
Rs.74.31 |
|
Euro |
1 |
Rs.64.40 |
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 |
YES |
|
--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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.