MIRA INFORM REPORT

 

 

Report Date :

23.03.2013

 

IDENTIFICATION DETAILS

 

Name :

TRIDENT TOOLS LIMITED (w.e.f.17.01.2011)

 

 

Formerly Known As :

MAGICUT TOOLS LIMITED

 

 

Registered Office :

Survey No. 26, Tembhode Shirgaon Road, Dhansar Village, Palghar, Thane – 401404, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

29.04.1982

 

 

Com. Reg. No.:

11-027046

 

 

Capital Investment / Paid-up Capital :

Rs. 67.500 Millions

 

 

CIN No.:

[Company Identification No.]

L29220MH1982PLC027046

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturer and Exporter of HSS Tool Bits, Hacksaws and Bandsaws.

 

 

No. of Employees :

150 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (30)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 456000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track record. The financial strength of the company appears to be moderate. There appears some dip in the profits during 2012. However, trade relations are reported as fair. Business is active. Payments are reported to be slow.

 

The company can be considered for business dealings with some caution.

 

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 – June 30, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

Long term Bank Loan facility : B+

Rating Explanation

High risk of default

Date

February 19, 2013

 

 

Rating Agency Name

CRISIL

Rating

Letter of Credit : A4

Rating Explanation

Minimal degree of safety and very high credit risk.

Date

February 19, 2013

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

 

INFORMATION PARTED BY

 

Name :

Mr. Namder

Designation :

Accounts Head

Contact No.:

91-22-28847191

Date :

06.03.2013

 

 

LOCATIONS

 

Registered Office/ Factory :

Survey No. 26, Tembhode Shirgaon Road, Dhansar Village, Palghar, Thane – 401404, Maharashtra, India 

Tel. No.:

91-22-28847191

Mobile No.:

91-9375152539 (Mr. Sameer Bhosale)

Fax No.:

91-22-28462388

E-Mail :

sameer.bhosale@magicuttools.com

accounts@magicuttools.com

sales@magicuttools.com

Website :

www.magicuttools.com

Area :

2000 sq ft

Location :

Owned

 

 

Head Office :

Hercules Industrial Estate, Bank of Baroda Compound, 2nd Floor, A.C. Road, Ashok Nagar, Kandivli (East), Mumbai – 400101, Maharashtra, India

Tel. No.:

91-22-28462427/ 28847191

Fax No.:

91-22-28462388/ 28

 

 

DIRECTORS

 

AS ON 27.09.2012

 

Name :

Mr. Narendra R. Gupta

Designation :

Chairman and Whole Time Director

Address :

Premesh, 6-B, Bandra, Mumbai – 400050, Maharashtra, India

Date of Birth/Age :

14.08.1948

Date of Appointment :

29.04.1982

DIN No.:

00535619

 

 

Name :

Mr. Ravi N. Gupta

Designation :

Managing Director and Compliance Officer

Address :

Premesh, 6-B, Turner Road, Bandra (West), Mumbai – 400050, Maharashtra, India

Date of Birth/Age :

05.08.1973

Date of Appointment :

01.06.2010

DIN No.:

00106681

 

 

Name :

Mr. Suresh Bhandary

Designation :

Independent Director

Address :

12 Spencer House, 82 Coles Road, Frazer Town, Bangalore - 560005, Karnataka, India

Date of Birth/Age :

04.03.1946

Date of Appointment :

01.12.2008

 

 

Name :

Mr. Satish Marathe

Designation :

Independent Director

Address :

67, Krishna Prasad, 1st Floor, Next To Balmohan Vidyamandir, Dr. M.B. Raut Road, Shivaji Park, Mumbai - 400028, Maharashtra, India

Date of Birth/Age :

01.02.1952

Date of Appointment :

01.12.2008

DIN No.:

02135738

 

 

KEY EXECUTIVES

 

Name :

Mr. Namder

Designation :

Accounts Head

 

 

Audit Committee :

Ř  Suresh Bhandary

Ř  Satish Marathe

Ř  Narendra R. Gupta

 

 

Investor Grivance Committee :

Ř  Satish Marathe

Ř  Suresh Bhandary

Ř  Narendra R. Gupta

 

 

Remuneration Committee

Ř  Narendra R. Gupta

Ř  Satish Marathe

Ř  Suresh Bhandary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 31.12.2012

 

Category of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

http://www.bseindia.com/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/images/clear.gifIndividuals / Hindu Undivided Family

3819580

56.59

http://www.bseindia.com/images/clear.gifSub Total

3819580

56.59

http://www.bseindia.com/images/clear.gif(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

3819580

56.59

(B) Public Shareholding

 

 

http://www.bseindia.com/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/images/clear.gifBodies Corporate

2052617

30.41

http://www.bseindia.com/images/clear.gifIndividuals

 

 

http://www.bseindia.com/images/clear.gifIndividual shareholders holding nominal share capital up to Rs.0.100 million

580419

8.60

http://www.bseindia.com/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs.0.100 million

295084

4.37

http://www.bseindia.com/images/clear.gifAny Others (Specify)

2300

0.03

http://www.bseindia.com/images/clear.gifNon Resident Indians

2300

0.03

http://www.bseindia.com/images/clear.gifSub Total

2930420

43.41

Total Public shareholding (B)

2930420

43.41

Total (A)+(B)

6750000

100.00

© Shares held by Custodians and against which Depository Receipts have been issued

0

0.00

http://www.bseindia.com/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/images/clear.gifSub Total

0

0.00

Total (A)+(B)+(C)

6750000

0.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of HSS Tool Bits, Hacksaws and Bandsaws.

 

 

Exports :

 

Products :

HSS Tool Bits, Hacksaws and Bandsaws

Countries :

Ř  Germany

Ř  UK

Ř  France

Ř  Bangladesh

Ř  Sri Lanka

Ř  Netherlands

Ř  Middle East

 

 

Imports :

 

Products :

Raw Material

Countries :

Ř  China

Ř  Germany

 

 

Terms :

 

Selling :

Cash and Credit

 

 

Purchasing :

Cash and Credit

 

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

Particulars

Unit

Installed Capacity

Actual Production (Qty.)

Tool Bits

In Nos

500000

--

Bandsaw Blades

In Nos

300000

--

Hacksaw Blades

In Nos

1200000

--

Bearing and Bushes

In Nos

500000

--

HSS Tool Bits

In Nos

--

239896

HSS Blades

In Nos

--

3691367

PATTA

In Nos

--

5390

B. Tools

In Nos

--

7261

Hacksaw Frames

In Nos

--

13075

 

 

GENERAL INFORMATION

 

Customers :

End Users

 

 

No. of Employees :

150 (Approximately)

 

 

Bankers :

Punjab National Bank, 8 Cama Industrial Estate, Walbhat Road, Goregaon (East), Mumbai – 400063, Maharashtra, India

 

 

Facilities :

Total – Rs. 200.00 Millions

 

Secured Loans

31.03.2012

31.03.2011

 

Term loans

(Rs. In Millions)

From banks

 

 

P.N.B. Term Loan A/C NO.175600IB20032773

2.351

3.038

P.N.B. Term Loan A/C NO.175600IB20032834

30.494

34.176

P.N.B. Term Loan A/C NO.175600IB20032904

59.958

0.000

P.N.B. Term Loan A/C NO.175600IC00000146

3.042

3.766

Motor Car Loan

 

 

P.N.B. Motor Car A/C NO.175600IB20332922 (Tata LPT)

0.701

0.000

P.N.B. Motor Car Loan A/C NO.175600NG00002969 (Swift)

0.212

0.252

P.N.B. Motor Car Loan A/C NO.175600NG00003126 (Innova)

0.964

0.000

P.N.B. Motor Car Loan A/C NO.175600NG00003311 (Vento)

0.879

0.000

Working Capital Loan

P.N.B. C/C A/c.No.1756008700000594

91.453

96.579

Packing Credit

 

 

P.N.B.175600UE00000157 (PCFC)

4.937

0.000

P.N.B.175600UE00000166 (PCFC)

5.164

0.000

P.N.B.175600UE00000175 (PCFC)

4.539

0.000

P.N.B.175600UE00000184 (PCFC)

4.623

0.000

Total

209.317

137.811

 

Note:

(a) Working Capital Loan - CC (H)

- Security :- Hypothecation of entire stock of raw materials, stock in progress and finished goods, consumable stores & spare & packing material etc., and Book debts arising out of genuine sale transaction.

 

- Rate of Interest :- BR + 4.50% presently 15.25% P.A.

- Margin :- 25%

- Ceiling on Limits :- Total outstanding under CC (H) + PC + FOBP/FOUBP should not exceed Rs.105.000 Millions.

 

(b) Packing Credit :

- Security :-First charge on entire current assets, present & future, including entire stocks, book debts, loans & advance etc. DP, however, to be allowed against stocks only as per CC (H) facility

- Amount Limit :- Up to Rs.50.000 Millions (sub limit to CC (H) 105.000 Millions Limit)

- Margin :- 25% for packing credit

- Terms of Repayment :- Each packing credit shall be adjusted by the borrower within the specified period (maximum 180 days) duly assessed on the basis of the total operating cycle from procurement of raw material to actual shipment of finished goods of validity period of Export order/LC, whichever is earlier

 

4

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Girish Patel and Company

Chartered Accountants

Address :

F-103/104, Patel Nagar, M.G. Road, Kandivali (West) Mumbai - 400067, Maharashtra, India

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

7000000

Equity Shares

Rs. 10/- each

Rs. 70.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

6750000

Equity Shares

Rs. 10/- each

Rs. 67.500 Millions

 

 

 

 

 

 

Note 1 A

Disclosure pursuant to Note no. 6(A)(d) of Part I of Schedule VI to the Companies Act, 1956

(Following disclosure should be made for each class of Shares)

Particulars

Equity Shares

 

Number

Amount in Millions

Shares outstanding at the beginning of the year

5,000,000

50.000

Shares Issued during the year

1,750,000

17.500

Shares bought back during the year

--

--

Shares outstanding at the end of the year

6,750,000

67.500

 

 

Note 1 B

Disclosure pursuant to Note no. 6(A)(g) of Part I of Schedule VI to the Companies Act, 1956 (if more than 5%)

Name of Shareholder

31.03.2012

 

No. of

Shares held

% of Holding

Sita Narendra Gupta

562400

8.33%

Sheetal Ravi Gupta

467660

6.93%

Ravi Narendra Gupta

1108100

16.42%

Greesha Ravi Gupta

475000

7.04%

Harshwardhan Ravi Gupta

476050

7.05%

Narendra Rameshchandra Gupta (HUF)

560700

8.31%

Ravi N Gupta (HUF)

421170

6.24%

Vulcan Tools Private Limited

540650

8.01%

TOTAL

4611730

68.32%

 

As per of the Company, including its registers of Shareholders/Members and other declaration received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

 

 

Note 1 C

Disclosure pursuant to Note no. 6(A)(I) of Part I of Schedule VI to the Companies Act, 1956

Sr No

No. of shares forfeited

Amount originally paid up

1

849200

2.677

 

The above forfeited shares have been re-issued, subscribed and fully paid-up.

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2012

31.03.2011

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

67.500

61.685

61.661

2] Share Application Money

0.000

0.000

0.000

3] Money received against share warrants

8.087

0.000

0.000

4] Reserves & Surplus

38.419

29.277

22.870

5] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

114.006

90.962

84.531

LOAN FUNDS

 

 

 

1] Secured Loans

209.317

137.811

87.250

2] Unsecured Loans

30.398

0.000

0.000

TOTAL BORROWING

239.715

137.811

87.250

DEFERRED TAX LIABILITIES

10.156

3.025

3.025

 

 

 

 

TOTAL

363.877

231.798

174.806

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

102.925

58.704

53.352

Capital work-in-progress

88.423

28.741

0.000

Goodwill on Consolidation

0.000

0.000

6.750

 

 

 

 

INVESTMENT

0.059

0.060

0.060

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
158.199
127.796

85.845

 

Sundry Debtors
56.456
39.668

108.506

 

Cash & Bank Balances
6.004
2.641

3.007

 

Other Current Assets
0.219
0.000

0.000

 

Loans & Advances
19.341
31.429

34.792

Total Current Assets
240.219
201.534

232.150

Less : CURRENT LIABILITIES & PROVISIONS
 
 

 

 

Sundry Creditors

46.231
42.618

99.418

 

Other Current Liabilities
8.686
10.054

14.627

 

Provisions
12.832
4.569

3.461

Total Current Liabilities
67.749
57.241

117.506

Net Current Assets
172.470
144.293

114.644

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

363.877

231.798

174.806

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Revenue from operations

371.885

203.126

231.412

 

 

Other Income

0.304

0.241

0.126

 

 

TOTAL                                     (A)

372.189

203.367

231.538

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

267.146

139.451

185.369

 

 

Changes in inventories of finished goods work-in-progress and Stock-in-Trade

(28.850)

(20.540)

0.000

 

 

Employee benefits expense

24.612

18.694

6.810

 

 

Other expenses

63.184

37.768

21.675

 

 

TOTAL                                     (B)

326.092

175.373

213.854

 

 

 

 

 

Less

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

46.097

27.994

17.684

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

21.387

17.158

10.455

 

 

 

 

 

 

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

24.710

10.836

7.229

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

6.042

1.932

0.930

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

18.668

8.904

6.299

 

 

 

 

 

Less

TAX                                                                  (H)

10.941

1.001

1.083

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

7.727

7.903

5.216

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export at FOB value

120.729

72.589

31.878

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

77.766

65.427

41.040

 

 

Trading Goods

0.000

0.000

80.942

 

TOTAL IMPORTS

77.766

65.427

121.982

 

 

 

 

 

 

Earnings Per Share (Rs.)

1.14

1.31

0.08

 

 

Expected Sales (2012-2013): Rs. 700.000 Millions

 

The above information has been parted by Mr. Namder (Accounts Department)

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2012

30.09.2011

31.12.2010

Type

1st Quarter

2nd Quarter

3rd Quarter

 Sales Turnover

82.200

130.900

114.800

 Total Expenditure

67.700

111.700

95.600

 PBIDT (Excl OI)

14.400

19.200

19.200

 Other Income

0.200

00.00

0.200

 Operating Profit

14.600

19.300

19.300

 Interest

5.600

8.500

9.600

 Exceptional Items

0.000

0.000

0.000

 PBDT

9.000

10.800

9.800

 Depreciation

1.900

4.700

4.900

 Profit Before Tax

7.200

6.100

4.900

 Tax

3.500

3.400

2.100

Provisions and Contingencies

0.000

0.000

0.000

 Reported PAT

3.600

2.700

2.800

Extraordinary Items      

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

Net Profit

3.600

2.700

2.800

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)
2.08

3.89

2.25

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
5.02

4.38

2.72

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
5.44

3.42

2.21

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.16

0.10

0.07

 

 
 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 
2.10

1.52

1.03

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
3.55

3.52

1.98

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

Yes

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

Yes

9]

Name of person contacted

Yes

10]

Designation of contact person

Yes

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

--

14]

Estimation for coming financial year

Yes

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

Yes

20]

Export / Import details (if applicable)

Yes

21]

Market information

--

22]

Litigations that the firm / promoter involved in

--

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

--

26]

Buyer visit details

--

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

Yes

 

 

UNSECURED LOANS

 

Unsecured Loans

31.03.2012

31.03.2011

 

 

(Rs. In Millions)

From others

30.398

0.000

Total

30.398

0.000

 

 

OPERATIONS AND PERFORMANCE:

 

F.Y. 2011-12 was a challenging year. The global economy, witnessed lower economic growth, resulting from the Euro Zone Debt Crisis, High Oil prices and other crisis. The European economies stagnated and the US witnessed a downgrade in credit rating, while the growth engines of the global economy, China and India were forced to tighten liquidity to tame rising inflation. Despite these constraints and the challenging environment, the company performed reasonably well and the highlights of the performance are as under:

 

Ř  Revenue from operations increased by 86.25% to Rs. 401.572 Millions from the previous year Rs. 215.613 Millions

Ř  EBIDTA increased by 64.67% to Rs. 46.096 Millions from the previous year Rs. 27.993 Millions

Ř  Profit before Tax increased by 109.66% to Rs. 18.666 Millions from the previous year Rs. 8.903 Millions

Ř  Net Profit after Tax decreased by 2.22% to Rs. 7.727 Millions from the previous year Rs. 7.903 Millions due to high deferred tax provision in the current year & due to short provision of tax in the previous year.

 

Although the Company maintains adequate internal control systems covering all its operation areas. The Directors

are putting in their further efforts and are hopeful of improved working during the years to come. Barring unforeseen circumstances, the Directors are confident of achieving better results in the ensuing year.

 

 

SCHEME OF MERGER WITH QUICKCUT ENGINEERING COMPANY PRIVATE LIMITED:

 

The Board of Directors has unanimously approved the scheme of Merger between Trident Tools Limited and Quickcut Engineering Company Private Limited in the meeting dated 16th December, 2011. They have obtained NOC to file this petition to High Court from BSE on 18th June, 2012 and the same will be filed before the High Court shortly for further proceeding.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

 

ECONOMY SURVEY:

 

Despite the low growth figure of 6.9%, India remains one of the fastest growing economies of the world as all major countries including the fast growing emerging economies are seeing a significant slowdown. The global economic environment which was tenuous at best throughout the year, turned sharply adverse in September, 2011, owing to the turmoil in the euro-zone countries and questions about others, reflected in sharp ratings downgrades of sovereign debt in most major advanced countries. While a large part of the reason for the slowing of the Indian economy can be attributed to global factors, domestic factors also played role. Among these are the tightening of monetary policy owing to high and persistent headline inflation and slowing investment and industrial activity. However, for the Indian economy, the outlook for growth and price stability at this juncture looks more promising. There are signs from some high frequency indicators that the weakness in economic activity has bottomed out and a gradual upswing is imminent. The Economic Survey expects the growth rate of real GDP to pick up to 7.6% in 2012-13 and faster beyond that.

 

 

INDUSTRY STRUCTURE AND OPPORTUNITIES:

 

The Company is engaged in the business of manufacturing of wide range of Saws and Tools like Hand Hacksaw Blades & Frames, Junior Hacksaw Blades & Frames, Power Hacksaw Blades, Bimetal Hole Saws, Accessories & Kits, Reciprocating Saw Blades, Air Saws Blades and Tool Bits. These are used in almost every sector for cutting of materials like angle, channel, flat plates, rods and such other things. They are also required in auto repairing shops, general repairing workshops, fitting shops, welding shops and technical institutes. To meet the customer demand is vital force that drives the organization towards higher performances standard of manufacturing and product quality. To achieve this at every stage of manufacturing cycle, the company has set of Six ‘P’ progress maxim based on Policy, Product, Process, Prevention, Protection and Project, enabling it to stay at the forefront of manufacturing technology. Their professionally qualified team of technologist and engineers ensure a high satisfactory level of products in all respects. There is plenty of room for the company to grow in its existing fields of business, e.g. the company is constantly expanding its customer base with in the India in the dealer market and internationally as well. Growth in the existing business area is expected to come from market growth, further market penetration, the supply of existing customers in other regions and the enlargement of the product portfolio. Additional economies of scale will be achieved by means of further capacity utilization. The company will be able to achieve these targets with a minimum of capital expenditure since reserve capacities, already exist.

 

The future of Saws and Cutting Tools industry largely depends on the growth of industrialization, engineering sector, real estate, automobile sector etc. As India is emerging as one of the key auto, engineering centers and

real estate in the world, the demand for Saws and Cutting Tools will increase.

 

 

FINANCIAL PERFORMANCE:

 

The year gone was full of achievements for the company. The company has improved its performance significantly in the previous year. It has gained the ability to have revenue stream from a number of industry sectors. The highlights of the performance are as under:

 

Ř  Revenue from operations increased by 86.25% to Rs. 401.572 Millions from the previous year Rs. 215.614 Millions

Ř  EBIDTA increased by 64.67% to Rs. 46.096 Millions from the previous year Rs. 27.993 Millions

Ř  Profit before Tax increased by 109.66% to Rs. 18.666 Millions from the previous year Rs. 8.903 Millions

Ř  Net Profit decreased by 2.22% to Rs. 7.727 Millions from the previous year Rs. 7.903 Millions due to high deferred tax provision in the current year and due to short provision of tax in the previous year.

 

Apart from this the company has been consistently performing excellent in the international market. With the well planned strategy MAGICUT international sales have had a very good run during the last three years and had grown with a CAGR of 82.52%.

 

 

FUTURE OUTLOOK:

 

Demands for Saws and Cutting Tools are going to be high in the coming years in the market, thus the company has bright future and has built itself to face each and every market challenges. The long-term outlook of MAGICUT is positive, as the demand for its products grows at a enhanced rate. Looking at the growing demands for the Saws and Cutting Tools products, the company has already increased its installed capacity. The company seeks to be cost effective high quality producer and is focus on maintaining its cost competitiveness by introducing backward integration projects, in order to avail benefits of large scale production at one place.

 


FIXED ASSETS:

 

Ř  Leasehold Land

Ř  Building

Ř  Plant and Machinery

Ř  Electrical Installation

Ř  Laboratory Equipments

Ř  Furniture and Fixtures

Ř  Cutters and Accessories

Ř  Factory Equipments

Ř  Office Equipments

Ř  Air Condition

Ř  Computers

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                           None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs. 54.34

UK Pound

1

Rs. 82.56

Euro

1

Rs. 70.10

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Report Prepared by :

BVA

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--CREDIT LINES

1~10

3

--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

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTERS 

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

30

 

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.