MIRA INFORM REPORT

 

 

Report Date :

22.10.2013

 

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) :

31.03.2013

 

 

Date of Incorporation :

29.04.1982

 

 

Com. Reg. No.:

11-027046

 

 

Capital Investment / Paid-up Capital :

Rs. 117.000 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 (31)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 600000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track record.

 

Eventhough the company has improved its profitability, the position of reserves appears to be extremely low. External borrowings seems to be increasing over previous years during 2013.

 

However, trade relations are fair. Business is active. Payment terms are reported as slow but correct.

 

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

 

Note: The shares of the subject company is not traded on BSE and NSE from last 30 days.

 

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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

 

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

 

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

 

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Long term bank facilities: “BB-“

Rating Explanation

Moderate risk of default.

Date

22.04.2013

 

 

Rating Agency Name

CARE

Rating

Short term bank facilities: “A4“

Rating Explanation

Minimal degree of safety and very high credit risk.

Date

22.04.2013

 

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. Namdev

Designation :

Accounts Head

Contact No.:

91-22-32539213

Date :

18.10.2013

 

 

LOCATIONS

 

Registered Office/ Factory :

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

Tel. No.:

91-22-28847191

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, A.C. Road, Ashok Nagar, Kandivli (East), Mumbai – 400101, Maharashtra, India

Tel. No.:

91-22-28847191/ 32539213

Fax No.:

91-22-28462388/ 28861795

 

 

DIRECTORS

 

As on: 31.03.2013

 

Name :

Mr. Narendra R. Gupta

Designation :

Chairman and Whole Time Director

 

 

Name :

Mr. Ravi N. Gupta

Designation :

Managing Director and Compliance Officer

 

 

Name :

Mr. Suresh Bhandary

Designation :

Independent Director

 

 

Name :

Mr. Satish Marathe

Designation :

Independent Director

 

 

KEY EXECUTIVES

 

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: 30.06.2013

 

Category of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

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

 

 

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

3819580

56.59

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

3819580

56.59

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

 

 

Total shareholding of Promoter and Promoter Group (A)

3819580

56.59

(B) Public Shareholding

 

 

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

 

 

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

 

 

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

2237065

33.14

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

 

 

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

555896

8.24

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

135159

2.00

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

2300

0.03

http://www.bseindia.com/include/images/clear.gifClearing Members

200

0.00

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

2100

0.03

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

2930420

43.41

Total Public shareholding (B)

2930420

43.41

Total (A)+(B)

6750000

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

0

0.00

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

0

0.00

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

0

0.00

http://www.bseindia.com/include/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 :

Finished goods

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

Tel. No.: 91-22-26851099

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2013

As on

31.03.2012

Long term borrowings

 

 

From banks

 

 

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

1.471

2.351

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

25.043

30.495

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

83.927

59.958

P.N.B. Term Loan A/C NO.175600IB20032904 (Buyer’s credit)

38.966

0.000

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

2.090

3.042

P.N.B. Term Loan A/C NO.175600IB20032995

12.721

0.000

P.N.B. Term Loan A/C NO.175600IB20032995 (Buyer’s credit)

78.435

0.000

Motor Car Loan

 

 

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

0.582

0.701

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

0.135

0.212

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

0.820

0.964

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

0.755

0.879

 

 

 

Short term borrowings

 

 

Working Capital Loan

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

93.952

91.452

Packing Credit

 

 

P.N.B.175600UE00000236 (PCFC)

0.219

0.000

P.N.B.175600UD00000060 (PC)

5.836

0.000

P.N.B.175600UD00000079 (PC)

8.373

0.000

P.N.B.175600UE00000157 (PCFC)

0.000

4.938

P.N.B.175600UE00000166 (PCFC)

0.000

5.164

P.N.B.175600UE00000175 (PCFC)

0.000

4.539

P.N.B.175600UE00000184 (PCFC)

0.000

4.622

 

 

 

Total

353.325

209.317

 

Note:

 

(a) Working Capital Loan - CC (H)

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

- Rate of Interest: BR + 3.75% presently 14.00% P.A.

- Margin: 25%

- Ceiling on Limits: Total outstanding under CC (H) + PC + FOBP/FOUBP should not exceed Rs.115.000 millions.

(b) Packing Credit :

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

- Amount Limit: Up to Rs.55.000 millions (sub limit to CC (H) Rs.115.000 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

 

 

 

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: 30.06.2013

 

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

4950000

Share Capital Suspense Account

Rs.10/- each

Rs. 49.500 Millions

 

Total

 

Rs. 117.000 Millions

 

 

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

 

Particulars

Equity Shares

 

Number

Amount in Millions

Shares outstanding at the beginning of the year

6,750,000

67.500

Shares Issued during the year

--

--

Shares bought back during the year

--

--

Shares outstanding at the end of the year

6,750,000

67.500

 

 

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

31.03.2013

 

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)

309200

4.58%

Ravi N Gupta (HUF)

421170

6.24%

Vulcan Tools Private Limited

824124

12.21%

Ultracut Tools Private Limited

562639

8.34%

Axis Tools and Engg Company Private Limited

777037

11.51%

 

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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2013

31.03.2012

31.03.2011

        I.            EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

117.000

67.500

61.685

(b) Reserves & Surplus

5.821

38.419

29.278

(c) Money received against share warrants

29.507

8.087

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

152.328

114.006

90.963

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

315.096

128.999

41.231

(b) Deferred tax liabilities (Net)

17.536

10.156

3.026

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

1.144

0.715

0.000

Total Non-current Liabilities (3)

333.776

139.870

44.257

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

108.381

110.716

96.579

(b) Trade payables

48.962

46.231

42.618

(c) Other current liabilities

9.963

8.687

10.054

(d) Short-term provisions

17.440

12.117

4.569

Total Current Liabilities (4)

184.746

177.751

153.820

 

 

 

 

TOTAL

670.850

431.627

289.040

 

 

 

 

      II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

358.153

97.675

52.704

(ii) Intangible Assets

4.500

5.250

6.000

(iii) Capital work-in-progress

0.000

88.424

28.741

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

0.059

0.059

0.060

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

2.436

2.352

1.082

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

365.148

193.760

88.587

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

181.947

158.199

127.797

(c) Trade receivables

54.689

56.456

39.668

(d) Cash and cash equivalents

46.375

6.004

2.641

(e) Short-term loans and advances

21.704

16.989

30.347

(f) Other current assets

0.987

0.219

0.000

Total Current Assets

305.702

237.867

200.453

 

 

 

 

TOTAL

670.850

431.627

289.040

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Revenue from operations

493.108

367.758

203.126

 

 

Other Income

2.427

0.240

0.241

 

 

TOTAL                                     (A)

495.535

367.998

203.367

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

337.263

267.082

139.451

 

 

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

(15.754)

(28.850)

(20.540)

 

 

Employee benefits expense

29.315

24.612

18.694

 

 

Other expenses

65.215

59.057

37.768

 

 

TOTAL                                     (B)

416.039

321.901

175.373

 

 

 

 

 

Less

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

79.496

46.097

27.994

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

37.885

21.387

17.158

 

 

 

 

 

 

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

41.611

24.710

10.836

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

16.513

6.042

1.932

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

25.098

18.668

8.904

 

 

 

 

 

Less

TAX                                                                  (H)

12.443

10.941

1.001

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

12.655

7.727

7.903

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export at FOB value

102.119

120.729

72.589

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

117.400

77.766

65.427

 

 

Trading Goods

69.811

0.000

0.000

 

TOTAL IMPORTS

187.211

77.766

65.427

 

 

 

 

 

 

Earnings Per Share (Rs.)

1.87

1.14

1.31

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2013

1st Quarter

Audited / Unaudited

Unaudited

Net Sales

152.800

Total Expenditure

129.200

PBIDT (Excl OI)

23.600

Other Income

0.500

Operating Profit

24.100

Interest

12.100

Exceptional Items

0.000

PBDT

12.000

Depreciation

5.700

Profit Before Tax

6.300

Tax

2.900

Provisions and contingencies

0.000

Profit After Tax

3.500

Extraordinary Items

0.000

Prior Period Expenses

0.000

Other Adjustments

0.000

Net Profit

3.500

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

2.55

2.10

3.89

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

5.09

5.08

4.38

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

3.74

5.45

3.42

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.17

0.16

0.10

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

2.79

2.10

1.51

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.66

1.33

1.30

 

 

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

No

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

No

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 LOAN

(Rs. In Millions)

Particulars

As on

31.03.2013

As on

31.03.2012

Long term borrowings

 

 

 From other

70.097

30.398

From deposit

0.055

0.000

 

 

 

Total

70.152

30.398

 

 

OPERATIONS AND PERFORMANCE:

 

The global economy in the Financial Year (FY) 2012-13 improved slowly, but was short on expectations. Several European economies continue to experience recession due to high unemployment, banking fragility, fiscal tightening and sluggish growth. The U.S. economy improved marginally. Among the Asian economies, China going through a political transition experienced considerably slow growth. Deceleration in industrial output and exports weakened India’s economic growth significantly.

 

FY 2012-13 proved to be a challenging year amidst global economic uncertainties and disturbances in many parts of the world. Despite these constraints and challenging environment, the Company performed reasonably well and the highlights of the performance are as under:

 

-         Revenue from operations increased by 31.67% to Rs.528.753 Millions from the previous year Rs.401.572 Millions.

-         EBIDTA increased by 72.46% to Rs.79.497 Millions from the previous year Rs.46.095 Millions.

-         Profit before Tax increased by 34.36% to Rs.25.098 Millions from the previous year Rs.18.666 Millions

-         Net Profit increased by 63.77% to Rs.12.655 Millions from the previous year Rs.7.727 Millions

 

Al though 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 Scheme of Arrangement filed by the Company has been approved by the Honorable High Courts of Judicature at Bombay by the order dated 05th July, 2013, with an appointed date of 1st April, 2012 and an effective date of 05th July, 2013 (‘the Effective Date’), being the date on which all the requirements under the Companies Act, 1956 have been completed.

 

Pursuant to the Scheme, the Company will allot 49,50,000 equity shares of Rs.10/- each to the shareholders of the Quickcut Engineering Company Private Limited (Transferor Companies) in the proportion of 99 Equity shares of Rs.10/- each of the Trident Tools Limited (Transferee Company), for 1 Equity share of `10/- each held by the shareholder of the Transferor Company.

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

INDUSTRY STRUCTURE AND OPPORTUNITIES

 

The Company is engaged in the business of manufacturing of wide range of Saws and Tools like Hand Hacksaw Blades and Frames, Junior Hacksaw Blades and Frames, Power Hacksaw Blades, Bimetal Hole Saws, Accessories and Kits, Reciprocating Saw Blades, Air Saws Blades, Tool Bits, Bimetal strip and Bimetal Band Saw Blades. 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 centres 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:

 

-         Revenue from operations increased by 31.67% to Rs.528.753 Millions -from the previous year Rs.401.572 Millions

-         EBIDTA increased by 72.46% to Rs.79.497 Millions from the previous year Rs.46.095 Millions.

-         Profit before Tax increased by 34.36% to Rs.25.098 Millions from the previous year Rs.18.666 Millions

-         Net Profit increased by 63.77% to Rs.12.655 Millions from the previous year Rs.7.727 Millions

 

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 an enhanced rate. Looking at the growing demands for the Saws and Cutting Tools products, the company has already increased its installed capacity, introduced the backward integration projects, and added more products to the portfolio. Further The Company seeks more to be cost effective high quality producer and is focus on maintaining its cost competitiveness by introducing a further backward integration projects, in order to avail benefits of large scale production at one place.

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10454126

04/10/2013

266,000,000.00

PUNJAB NATIONAL BANK

2 ND FLOOR, SEEPZ, ANDHERI EAST, MUMBAI, MAHARASHTRA - 400096, INDIA

B87133146

2

10428738

24/05/2013

30,000,000.00

PUNJAB NATIONAL BANK

8 CAMA INDUSTRIAL ESTATE, WALBHAT ROAD, GOREGAON EAST, MUMBAI, MAHARASHTRA - 400063, INDIA

B76113174

3

10374312

25/08/2012

65,000,000.00

PUNJAB NATIONAL BANK

GOREGAON EAST BRANCH, 8 CAMA INDUSTRIAL ESTATE, WALLBHAT ROAD, GOREGAON EAST, MUMBAI, MAHARASHTRA - 400063, INDIA

B57181141

4

10326801

30/11/2011

700,000.00

PUNJAB NATIONAL BANK

8, CAMA INDUSTRIAL ESTATE, WALLBHAT ROAD, GOREGAON EAST, MUMBAI, MAHARASHTRA - 400063, INDIA

B29200466

5

10300944

13/07/2011

1,036,000.00

PUNJAB NATIONAL BANK

8 CAMA INDUSTRIAL ESTATE, GOREGAON EAST, MUMBAI, 
MAHARASHTRA - 400063, INDIA

B18327288

6

10176036

13/03/2013 *

416,736,000.00

PUNJAB NATIONAL BANK

8 CAMA IND. ESTATE, WAL BHAT ROAD, GOREGAON EAST , MUMBAI, MAHARASHTRA - 400062, INDIA

B73868234

7

10172497

27/06/2009

5,000,000.00

PUNJAB NATIONAL BANK

GOREGAON (EAST) BRANCH, 8, CAMA INDUSTRIAL ESTATE, 
VALBHAT ROAD, GOREGAON (EAST), MUMBAI, MAHARASHTRA - 400063, INDIA

A67936559

8

10140627

13/01/2009

3,500,000.00

PUNJAB NATIONAL BANK

GOREGAON (EAST) BRANCH,8, CAMA INDUSTRIAL ESTATE, 
VALBHAT ROAD, GOREGAON (EAST), MUMBAI, MAHARASHTRA - 400063, INDIA

A55896146

9

10125020

23/09/2008

3,500,000.00

PUNJAB NATIONAL BANK

GOREGAON (EAST) BRANCH, 8, CAMA INDUSTRIAL ESTATE, 
VALBHAT ROAD, GOREGAON (EAST), MUMBAI, MAHARASHTRA - 400063, INDIA

A47797873

10

10096419

10/03/2008

5,000,000.00

PUNJAB NATIONAL BANK

GOREGAON (EAST) BRANCH,8, CAMA INDUSTRIAL ESTATE, 
VALBHAT ROAD, GOREGAON (EAST), MUMBAI, MAHARASHTRA - 400063, INDIA

A35935097

11

10096396

14/08/2010 *

350,000,000.00

PUNJAB NATIONAL BANK

8 CAMA IND. ESTATE, WALBHAT ROAD, GOREGAON EAST, MUMBAI, MAHARASHTRA - 400063, INDIA

B73878704

12

90351474

23/12/2005

34,000,000.00

PUNJAB NATIONAL BANK

GOREGAON EAST BRANCH, MUMBAI, MAHARASHTRA, INDIA

-

13

90354422

27/06/2009 *

95,000,000.00

PUNJAB NATIONAL BANK

GOREGAON (EAST) BRANCH,8, CAMA INDUSTRIAL ESTATE, 
VALBHAT ROAD, GOREGAON (EAST), MUMBAI, MAHARASHTRA - 400063, INDIA

A67934679

 

* Date of charge modification

 

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. 61.49

UK Pound

1

Rs. 99.41

Euro

1

Rs. 84.12

 

 

INFORMATION DETAILS

 

Information Gathered by :

PLK

 

 

Report Prepared by :

DPH

 

 

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

4

--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

NO

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

31

 

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.