MIRA INFORM REPORT

 

 

Report Date :

29.12.2007

 

IDENTIFICATION DETAILS

 

Name :

FREEDOM RUBBER LIMITED

 

 

Formerly Known As :

PARVATI TYRES AND TUBES PRIVATE LIMITED

 

 

Registered Office :

167, Focal Point, Mehta Road, Amritsar - 143002, Punjab

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

29.01.1986

 

 

Com. Reg. No.:

16-6660

 

 

CIN No.:

[Company Identification No.]

U99999PB1986PLC006660

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

AMRF10036F

 

 

PAN No.:

[Permanent Account No.]

AAACF2466N

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturer and exporter of a diverse range of cycle tyres & tubes, rubber and rubber related 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

 

Maximum Credit Limit :

USD 94000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. 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 dealings at usual trade terms and conditions.

 

 

LOCATIONS

 

Registered Office :

167, Focal Point, Mehta Road, Amritsar - 143002, Punjab, India

Tel. No.:

91-183-2583350

Mobile No.:

91-9815000500

Fax No.:

91-183-2701350 / 583833

E-Mail :

vwadhwa@glide.net.in

Website :

http://freedomtyres.tradeindia.com

 

 

DIRECTORS

 

Name :

Mr. Rajinder Singh

Designation :

Director

Address :

Freedom House, Batala Road, Amritsar, Punjab, India 

Date of Appointment :

28.04.1991

 

 

Name :

Mr. Barinder Singh

Designation :

Director

Address :

183/184, Shivala Road, Amritsar, Punjab, India 

Date of Appointment :

28.08.1995

 

 

Name :

Mr. Rajbir Singh

Designation :

Director

Address :

183/184, Shivala Road, Amritsar, Punjab, India 

Date of Appointment :

01.04.1996

 

 

Name :

Mr. Gurpartap Singh

Designation :

Director

Address :

Freedom House, Batala Road, Amritsar, Punjab, India 

Date of Appointment :

01.04.1996

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders

 

No. of Shares

Rajinder Singh

 

106650

Ajit Singh

 

114700

Barinder Singh

 

108100

Kanwaljit Singh

 

111360

Harminder Singh

 

70400

Gurinder Singh

 

56860

Rajinder Kaur

 

17800

Gurpartap Singh

 

24700

Rajbir Singh

 

13750

Amrik Singh

 

81100

Jasbir Singh

 

12860

Ramneek Singh

 

18950

Kujwant Kaur

 

51200

Satwant Kaur

 

15000

Jagjit Singh

 

34000

Gaganpal Singh

 

11500

Ishwinder Kaur

 

10000

 

 

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Directors or relatives of directors

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and exporter of a diverse range of cycle tyres & tubes, rubber and rubber related products.

 

 

Products :
  • Tyres
  • Tubes
  • Rubber and Allied Products

 

 

Exports :

 

Countries :

Brazil, Italy, Egypt, Malawi, Mozambique and Kenya

 

 

Imports :

 

Products :
  • Natural Rubbers
  • Synthetic Rubbers
  • Carbon Black
  • Rubber Chemicals
  • Polyester Cords
  • Nylon Cords

 

 

GENERAL INFORMATION

 

Suppliers :
  • Freedom Industries Limited
  • Kay Dee Engineers
  • P L Engineering Works
  • Rangwala Minerals Private Limited
  • Kohinoor India Limited
  • New Bharat Trading Company
  • Jayshree Brass Industries
  • Luthra Rubber Industries
  • Vijay Kumar Mahajan
  • Manohar Lal Dharam Pal
  • Perfect Oil and Lubricants
  • Kapoor Associates
  • Goel Sales Agency
  • S V Textiles
  • Mahajan Rubber House
  • Aggarwal Sales Corporation
  • Swan Industries
  • M I Handlooms
  • International Company
  • Accurate Agency
  • New Bharat Goods Carries

 

 

Customers :
  • Shree Shyam International
  • Freedom Sales
  • Sachdeva and Sons
  • Modern Company Cycle Dealers
  • Aster Spares Exports Private Limited
  • Cytag Exports
  • Diamond International
  • Gemmy Cycle Private Limited
  • Ginni Exports Private Limited
  • Megson Industries
  • Sona Engineering Corporation
  • Salvo Industries
  • Unistar Distributors Private Limited
  • Ashok Cycle Trading Company
  • Vicky Cycle Stores

 

 

Bankers :
  • Karnataka Bank Limited

      37-A, R. K. Building, The Mall Toad, Amritsar – 143001, Punjab, India

 

  • ICICI Bank Limited

 

  • HDFC Bank Limited

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

V. Wadhwa and Company

Chartered Accountants

Address :

169-A, Rani Ka Bagh, Amritsar – 143001, Punjab, India

Tel. No.:

91-183-2223344 / 2400001 / 2564656 [Res.]

Mobile No.:

91-9814052233 / 9814222233

Fax No.:

91-183-2223344

E-Mail :

vwadhwa@glide.net.in

 

 

Memberships :

Chemicals and Allied Products Export Promotion Council (CAPEXIL)

 

 

CAPITAL STRUCTURE

AS ON 30.09.2006

 

Authorised Capital :

No. of Shares

Type

Value

Amount

3,500,000

Equity Shares

Rs. 10/- each

Rs. 35.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

955780

Equity Shares

Rs. 10/- each

Rs. 9.558 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

 

 

 

1] Share Capital

9.558

9.558

10.051

2] Share Application Money

0.493

0.493

0.000

3] Reserves & Surplus

13.551

13.295

12.348

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

23.602

23.346

22.399

LOAN FUNDS

 

 

 

1] Secured Loans

28.048

30.842

21.992

2] Unsecured Loans

0.107

0.107

0.124

TOTAL BORROWING

28.155

30.949

22.116

DEFERRED TAX LIABILITIES

3.695

3.796

3.555

SECURITIES

0.000

0.000

1.093

 

 

 

 

TOTAL

55.452

58.091

49.163

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

19.432

20.878

20.922

 

 

 

 

INVESTMENT

0.497

0.497

0.493

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
11.652

15.503

12.610

 

Sundry Debtors
42.680

37.331

28.800

 

Cash & Bank Balances
4.165

3.263

1.993

 

Loans & Advances
6.097

5.529

6.733

Total Current Assets
64.594

61.626

50.136

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
27.988

24.245

22.388

 

Provisions
1.083

0.665

0.000

Total Current Liabilities
29.071

24.910

22.388

Net Current Assets
35.523

36.716

27.748

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

55.452

58.091

49.163

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

 

31.03.2005

31.03.2004

Sales Turnover

 

145.912

132.789

 

 

 

 

Profit/(Loss) Before Tax

 

1.282

1.226

Provision for Taxation

 

0.335

0.330

Profit/(Loss) After Tax

 

0.947

0.896

 

 

 

 

Earnings in Foreign Currency :

 

 

 

Total Earnings

 

5.566

8.839

 

 

 

 

Expenditures :

 

 

 

 

Administrative Expenses

 

0.053

0.054

 

Salaries, Wages, Bonus, etc.

 

0.400

0.358

 

Managerial Remuneration

 

0.487

0.487

 

Payment to Auditors

 

0.029

0.038

 

Interest

 

2.921

3.278

 

Insurance Expenses

 

0.313

0.349

 

Power & Fuel

 

1.476

14.158

 

Depreciation & Amortization

 

1.727

1.535

 

Other Expenditure

 

137.224

111.306

Total Expenditure

 

144.630

131.563

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2006

31.03.2005

31.03.2004

PAT / Total Income

(%)
NA

0.65

0.67

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
NA

0.88

0.92

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
NA

1.55

1.73

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
NA

0.05

0.05

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
2.42

2.39

1.99

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.22

2.47

2.24

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Fixed Assets

 

 

 

Bankers Charges Report as per Registry

 

 

Name of the company

FREEDOM RUBBER LIMITED

Presented By

S Barinder Singh, Director 

1) Date and description of instrument creating the change

Hypothecation agreement dated 10.11.2004

2) Amount secured by the charge/amount owing on the securities of charge

Post shipment credit limit of Rs. 2.000 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Hypothecation of plant and Machinery and fixed assets installed at the factory building at 167, Focal Point, Amritsar

 

Equitable mortgage of land and building of the company situated at 167, Focal Point, Amritsar

4) Gist of the terms and conditions and extent and operation of the charge.

As per FEMA guidelines

Extent and operation of charge 100 %

5) Name and Address and description of the person entitled to the charge.

Karnataka Bank Limited

37-A, The Mall

Amritsar – 143001

6) Date  and brief description of instrument modifying the charge

--

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

--

 

 

This form is for

Creation of charge

Corporate identity number of the company

U99999PB1986PLC006660

Name of the company

FREEDOM RUBBER LIMITED

Address of the registered office or of the principal place of  business in India of the company

167, Focal Point, Mehta Road, Amritsar - 143002, Punjab, India

Type of charge

Immovable Property

Movable Property

Particular of charge holder

Karnataka Bank Limited

37-A, R. K. Building, The Mall Toad, Amritsar – 143001, Punjab, India

amritsar@ktkbank.com

Nature of description of the instrument creating or modifying the charge

Hypothecation agreement for pre/ post shipment credit of Rs. 2.500 Million

Date of instrument Creating the charge

22.06.2007

Amount secured by the charge

Rs. 2.500 Millions

Brief particulars of the principal terms an conditions and extent and operation of the charge

Rate of Interest :

Rate of Interest PLR minus 3.50 %

 

Terms of repayment :

On Demand

 

Margin :

Margin 25 %

 

Extent and operation of the charge :

Extent and operation of charge 100 %

Short particulars of the property charged

Entire Fixed assets of the company [excluding land and building] installed at 167-Focal Point, Amritsar and Hypothecation of all kinds of Rubber and its products.  

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

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

 

1]         INFORMATION ON DESIGNATED PARTY

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

 

2]         Court Declaration :

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

 

3]         Asset Declaration :

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

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                  None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

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

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

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

 

8]         Affiliation with Government :

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

 

9]         Compensation Package :

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

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

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

 

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

 

 

CONTRAVENTION

 

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

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.39.44

UK Pound

1

Rs.78.73

Euro

1

Rs.57.69

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

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

6

--LEVERAGE

1~10

6

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

48

 

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

 

 

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