MIRA
INFORM REPORT
|
Report Date : |
26.12.2007 |
IDENTIFICATION
DETAILS
|
Name : |
AGARWAL RUBBER LIMITED |
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Registered Office : |
H No. 15-1-503, Siddiambazar Road, Hyderabad 500012, Andhra Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
19.03.1983 |
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Com. Reg. No.: |
003868 |
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CIN No.: [Company
Identification No.] |
U25199AP1983PLC003868 |
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Legal Form : |
Closely held Public
Limited Liability Company. |
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Line of Business : |
Manufacturer of Automobile Rubber Products |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 230000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company. Directors are reported as experienced and
respectable businessman. Trade
relations are reported as fair.
Business is active. Payments
are reported as usually correct and as per commitments. The Company can be considered normal for business dealing at usual
trade terms and conditions |
LOCATIONS
|
Registered Office : |
H No. 15-1-503, Siddiambazar Road, Hyderabad 500012, Andhra Pradesh,
India |
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Tel. No.: |
91-40-24734152 |
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Fax No.: |
91-40-24744734 |
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E-Mail : |
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Corporate Office/Factory : |
Plot No. C – 8 to C – 11, Industrial Estate, Patancheru, Medak 502320,
Andhra Pradesh, India |
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Tel. No.: |
91-8452-242136 / 285994 / 325538 / 285453-55 |
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Fax No.: |
91-8452-242124 |
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E-Mail : |
DIRECTORS
|
Name : |
Mr. Deen Dayal Agarwal |
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Designation : |
Director |
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Address : |
5-9-30/1/8, Palace Colony, Basheerbagh, Hyderabad 500029, Andhra
Pradesh, India |
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Date of Birth/Age : |
14.08.1949 |
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Date of Appointment : |
19.08.1983 |
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Name : |
Mr. Ashok Kumar Agarwal |
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Designation : |
Director |
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Address : |
5-9-30/1/8, Palace Colony, Basheerbagh, Hyderabad 500029, Andhra
Pradesh, India |
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Date of Birth/Age : |
30.09.1960 |
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Date of Appointment : |
25.09.1990 |
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Name : |
Mr. Shyam Sunder Agarwal |
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Designation : |
Director |
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Address : |
5-9-30/1/8, Palace Colony, Basheerbagh, Hyderabad 500029, Andhra
Pradesh, India |
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Date of Birth/Age : |
17.01.1958 |
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Date of Appointment : |
19.08.1988 |
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Name : |
Mr. Amit Kumar Agarwal |
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Designation : |
Director |
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Address : |
5-9-30/1/8, Palace Colony, Basheerbagh, Hyderabad 500029, Andhra
Pradesh, India |
|
Date of Birth/Age : |
27.10.1979 |
|
Date of Appointment : |
11.11.2002 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
|
Deen Dayal Agarwal |
|
29710 |
|
Shyam Sunder Agarwal |
|
35250 |
|
Ashok Kumar Agarwal |
|
36590 |
|
Ginni Bai |
|
51355 |
|
Santosh Kuhari |
|
7400 |
|
Santosh Kuhari |
|
1940 |
|
Sunitha Kuhari |
|
1375 |
|
Sheetal Agarwal |
|
2805 |
|
Naval Kishore Agarwal |
|
4840 |
|
Mahesh Kumar Kuhari |
|
3740 |
|
Master Tarush |
|
13730 |
|
Amit Agarwal |
|
23045 |
|
Renuka Agarwal |
|
2090 |
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Trupti Agarwal |
|
5100 |
|
Ramesh Kumar Agarwal |
|
9900 |
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Sachin Agarwal |
|
14190 |
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Vikas Agarwal |
|
3905 |
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Pooja Agarwal |
|
13015 |
|
Prema Kuhari |
|
12100 |
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Vidya Gadhok |
|
50000 |
|
H. G. Portfolio and Management Limited |
|
138920 |
|
Seaways Information Management Technologies Limited |
|
29000 |
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Total |
|
490000 |
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Equity Share
Break-up |
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|
|
Bodies Corporate |
|
28.35 |
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Directors or relatives of the Directors |
|
71.65 |
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Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Automobile Rubber Products |
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Products : |
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GENERAL
INFORMATION
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No. of Employees : |
100 |
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Bankers : |
Ř ABN Amro Bank Ř ICICI Bank
Limited Ř State Bank of
Hyderabad, Gunfoundry Branch, Hyderabad |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
T. S. Ajai Chartered Accountants |
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Address : |
304, Minar Apartments, Deccan Towers, Basheerbagh, Hyderabad 500001,
Andhra Pradesh, India |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1000000 |
Equity Shares |
Rs. 100/- each |
Rs. 100.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
490000 |
Equity Shares |
Rs. 100/- each |
Rs. 49.000 Millions |
||
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
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|
|
|
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1] Share Capital |
49.000 |
49.000 |
49.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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|
3] Reserves & Surplus |
10.149 |
5.948 |
1.484 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
59.149 |
54.948 |
50.484 |
|
|
LOAN FUNDS |
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|
|
|
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1] Secured Loans |
114.658 |
72.345 |
75.992 |
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2] Unsecured Loans |
48.461 |
49.624 |
38.801 |
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TOTAL BORROWING |
163.119 |
121.969 |
114.793 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
222.268 |
176.917 |
165.277 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
79.096 |
81.344 |
73.141 |
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Capital work-in-progress |
0.000
|
0.000 |
0.000 |
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INVESTMENT |
0.073 |
0.073 |
0.073 |
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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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|
|
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Inventories |
97.328
|
73.560 |
72.090 |
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Sundry Debtors |
74.180
|
52.231 |
55.687 |
|
|
Cash & Bank Balances |
7.474
|
5.377 |
7.292 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
35.968
|
19.385 |
18.493 |
|
Total
Current Assets |
214.950
|
150.553 |
153.562 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
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|
|
|
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Current Liabilities |
71.285
|
54.653 |
61.499 |
|
|
Provisions |
0.566
|
0.400 |
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Total
Current Liabilities |
71.851
|
55.053 |
61.499 |
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Net Current Assets |
143.099
|
95.500 |
92.063 |
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|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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|
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|
|
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TOTAL |
222.268 |
176.917 |
165.277 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
|
301.276 |
300.736 |
|
|
Other Income |
|
2.345 |
0.209 |
|
|
Prior Period Income |
|
3.045 |
0.000 |
|
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Total Income |
|
306.666 |
300.945 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
|
4.863 |
0.745 |
|
|
Provision for Taxation |
|
0.400 |
0.060 |
|
|
Profit/(Loss) After Tax |
|
4.463 |
0.685 |
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Earnings in Foreign Currency : |
|
140.181 |
88.454 |
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Total Imports |
|
51.439 |
51.234 |
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Expenditures : |
|
|
|
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Raw material consumed |
|
174.303 |
168.247 |
|
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Manufacturing and other Expenses |
|
113.111 |
127.498 |
|
|
Financial Charges |
|
11.054 |
11.296 |
|
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Accretion/[Decretion] to Stock |
|
[5.011] |
[16.470] |
|
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Depreciation |
|
8.346 |
9.629 |
|
Total Expenditure |
|
301.803 |
300.200 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
NA
|
1.45 |
0.22 |
|
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|
Net Profit Margin (PBT/Sales) |
(%) |
NA
|
1.61 |
0.24 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
NA
|
2.09 |
0.32 |
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Return on Investment (ROI) (PBT/Networth) |
|
NA
|
0.08 |
0.01 |
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|
Debt Equity Ratio (Total Liability/Networth) |
|
3.97
|
3.22 |
3.49 |
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|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.99
|
2.73 |
2.49 |
LOCAL AGENCY
FURTHER INFORMATION
Fixed Assets:
Ř
Land
Ř
Building
Ř
Plant and Machinery
Ř
Technical Know-how
Ř
Furniture
Ř
Office Equipments
Ř
Tools
Ř
Electric Equipments
Ř
Vehicles
Ř
Moulds
Ř
Capital Work in progress
CONTINGENT LIABILITIES AS ON 31.03.2005
Ř Bank Guarantee Rs. 0.680 Millions
Ř Letter of Credit Rs. 18.827 Millions
Ř Estimated amount of contract remaining to be executed on capital account
not provided for Rs. NIL
Ř Bills Discounting Rs. 2.500 Millions
AS PER WEBSITE DETAILS:
Profile
Subject
more than two decades ago, is ranked amongst the elite private business groups
in India, in terms of assets and sales. The groups business can be best
characterized as, multi business, namely:
- Automobile
Rubber Products (Tyres, Butyl Tubes, Flaps, Curing Bags, Bladders and
Envelopes)
- Cement
Manufacturing
- Educational
Institutions.
This
range is accompanied with multi location, with Head Office in Hyderabad, India,
one of the fastest growing industrial hubs and the biggest software development
centres of India. The group has a distinguished record of being a pioneer in
introducing several new products and processes in their core business areas.
Their Journey to Success
- Subject was incorporated in 1983 with the sole aim of
manufacturing high quality automobile butyl tubes at Patancheru in Medak
district (on the outskirts of Hyderabad). To ensure that the company's
mission was adopted in letter and spirit; the products were suitably
branded as MARUTI - a symbol of strength, performance and reliability.
- At that time, their company was the
first to develop a whole profile for tubes/flaps in SSI sector in India,
with most innovative and cost effective processes. It was the first to
develop such high quality butyl tubes outside the major tyre manufacturing
companies of India.
- It started with a capacity of 200 tubes
per day which now stands at 12,000 tubes per day. By the year 1989, the
company became a major supplier of Butyl tubes to all the major tyre
manufacturing companies of India and also to the state road transport
undertakings.
- In 1991, success in the domestic market
was carried overseas with the start of bulk exports of tubes to advanced
foreign markets, starting with the SAARC nations. It now spans across 35
countries in the Middle East, the Far East, Africa, South America and
North America.
- For the last 10 consecutive years,
winning the "Award of Merit for Exports" from CAPEXIL (Chemical
and Allied Products Export promotion Council, Govt. Of India) stands as
testimony in recognition to their commitment towards maintaining sustained
growth, stringent quality control, constant innovation and up gradation of
product profile.
- With a constant technology upgradation
and an in-house design and development, the company, indigenously
developed a range of high end Aviation and OTR Tubes. This effort,
customized to the requirements of prestigious OEMs like Bharat Earth
Movers Ltd. (B.E.M.L.).; Defence Vehicle Factory, Jabalpur (V.F.J) brought
them their acclaim and mutually rewarding association.
- In the year 2000, the company was
rewarded ISO 9001:2000 accredition from TUV of Germany for design,
development, manufacture and supply of automobile tyres, tubes, flaps,
curing bags, bladders and envelopes. It provided them an international
recognition for all what their company stands for i.e. quality product,
high end technology and committed customer service.
- The same year also saw the launch of a
range of two wheeler and three wheeler tyres, which soon expanded to
tractor front, passenger, L.C.V. and tractor trailer tyres.
- In the year 2006, in sync with the
proactive and vibrant ethos of the company, a new brand 'ARL' was
launched. It further expanded their quest for growth, natural progression
of product profile and to cater to an ever increasing market size.
- Today, they are known for their
continuous commitment towards customer satisfaction, meeting their
specific needs through innovation and customization of their product
profile by adding value added products of the highest quality and offering
the best value for money, all under one umbrella, i.e. Agarwal Rubber Limited.
Form 8
|
This Form is for |
Modification of charge |
|
Charge
identification number of the charge to be modified |
90123504 |
|
Corporate
identity number of the company |
U25199AP1983PLC003868 |
|
Name of the
company |
AGARWAL RUBBER
LIMITED |
|
Address of the
registered office or of the principal place of business in India of the company |
H No. 15-1-503, Siddiambazar Road, Hyderabad 500012, Andhra Pradesh |
|
Type of charge |
Book Debts Movable property Immovable property |
|
Particular of
charge holder |
State bank of
Hyderabad Abids Road,
Hyderabad 500001, Andhra Pradesh |
|
Nature of description
of the instrument creating or modifying the charge |
Letter regarding
the grant of individual limits within the overall limit [Form C-5] Supplemental
Agreement of Loan for increase in the overall limit Memorandum
deposit of title deeds |
|
Date of
instrument Creating the charge |
20.02.2007 |
|
Amount secured by
the charge |
Rs. 215.000
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
[a] Rate of
interest SBH PLR i.e 12.50%
p.a. presently with monthly rests/compounding [b] Terms of
repayment Repayable on
Demand Short Term
Corporate Loan of Rs. 10.000 Millions will be repaid in 36 monthly
installments of Rs. 0.278 Millions each and interest to be paid as and when
debited. [c] Margin Raw Material 25% Stock in process
25% Stores and Spares
25% Finished goods
25% Book debts 50% [d] Extent and
operation of the charge First charge on
entire current assets and other movable assets both present and future. First charge on fixed
assets including movable plant and machinery, equipments and other movable
fixed assets and immovable properties both present and future. Other terms and
conditions as per sanction letter |
|
Short particulars
of the property charged |
First charge on
and hypothecation of entire current assets including raw materials, stock in
process, finished goods, book debts and receivables Equitable
mortgage by way of constructive delivery and deposit of title deeds in
respect of immovable properties situated at C-8 to 11 and E-6 and 11B at IDA
Phase 1, Medak including buildings constructed or to be constructed thereon
first charge basis for the total limits sanctioned by SBH |
|
Date of latest
modification prior to the present modification |
|
|
Particulars of the
present modification |
|
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. 39.39 |
|
UK Pound |
1 |
Rs. 78.02 |
|
Euro |
1 |
Rs. 56.77 |
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 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--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 |
Unfavourable & favourable factors carry similar weight in credit consideration.
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|