MIRA INFORM REPORT

Report Date :

20.02.2007

IDENTIFICATION DETAILS

Name :	PODDAR TYRES LIMITED
Registered Office :	5-D, Court Chambers, 35, New Marine Lines, Mumbai-400020, Maharashtra
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	13.02.1981
Com. Reg. No.:	11-23895
CIN No.: [Company Identification No.]	U25100MH1981PLC023895
TAN No.: [Tax Deduction & Collection Account No.]	JLDP01485B
PAN No.: [Permanent Account No.]	AAACP6439M
Legal Form :	A Closely held Public Limited Liability Company
Line of Business :	Manufacturers of Tyres and Tubes for Cycles and Cycle Rickshaws

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 650000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Trade relations are fair. Financial position is satisfactory. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	5-D, Court Chambers, 35, New Marine Lines, Mumbai-400020, Maharashtra, India
Tel. No.:	91-22-22006554
Administrative Office :	6-B, Court Chambers, 35, New Marine Lines, Mumbai-400020, Maharashtra, India
Tel. No.:	91-22-22006554/ 3629
Fax No.:	91-22-22080743
E-Mail :	bedrock@bom5.vsnl.net.in
Factory 1 :	Poddar Nagar, G T Road, Jugiana, Ludhiana-141420, India
Tel. No.:	91-161-2511556/ 60
Fax No.:	91-161-2511566
E-Mail :	info@bedrocktyres.com, poddar@jia.vsnl.net.in

DIRECTORS

Name :	Mr. Arunkumar Poddar
Designation :	Director
Address :	Mount Unique, 62A, Peddar Road, Mumbai-400026, Maharashtra
Date of Birth/Age :	28.03.1954
Date of Appointment :	13.02.1981
Name :	Mr. Kamalkumar Poddar
Designation :	Director
Address :	Mount Unique, 62A, Peddar Road, Mumbai-400026, Maharashtra
Date of Birth/Age :	23.05.1952
Date of Appointment :	13.02.1981
Name :	Mr. Rameshkumar R. Bhandari
Designation :	Director
Address :	The Punjab State Ind Dev Corporation Limited, 18, Himalaya Marg Sector 17, PB N.81, Chandigarh-160017, Punjab
Date of Birth/Age :	15.02.1951
Date of Appointment :	23.03.1991
Name :	Mr. Anilkumar Saraf
Designation :	Director
Address :	Flat A-804, Velentine Apartment, B/3, Pimplipada, Gen. A K Vaidya Marg, Malad (East), Mumbai-400097, Maharashtra
Date of Birth/Age :	10.03.1962
Date of Appointment :	25.11.2004
Name :	Mr. K M Upadhyay
Designation :	Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Mr. Santoshkumar N Poddar	17
Mr. Arunkumar N. Poddar	184
Matushree Investment Private Limited	8217
Mr. Kamalkumar B. Poddar	48984
Shubhlabh Investment Private Limited	4046
Mrs. Aruna A Poddar and Mr. Arunkumar Poddar	13500
Mr. Kamalkumar Poddar and Mr. Baluram Poddar	125
Mrs. Draupadidevi B. Poddar and Mr. Baluram Poddar	63
Mrs. Shardadevi B. Poddar and Mr. Kamalkumar Poddar	39816
Mr. Arunkumar Poddar (HUF)	121087
Mrs. Rachana A. Poddar	44512
Mr. Rohit A. Poddar	44502
Mrs. Aruna A. Poddar	12904
Rohit Impex Private Limited	69159
Kamalkumar & Company (HUF)	39304
Mrs. Asha N. Poddar and Mr. Narayan Prasad Poddar	40000
Rohit Impex Private Limited	42780
Mr. Rohit N. Poddar	24684
Mrs. Rachana A Poddar	24737
Mr. Arunkumar Poddar (HUF)	41873
Mr. Kamalkumar B Poddar	20000
Mrs. Shardadevi K Poddar and Kamalkumar Poddar	28000
Kamalkumar & Company (HUF)	4167

BUSINESS DETAILS

Line of Business :	Manufacturers of Tyres and Tubes for Cycles and Cycle Rickshaws
Products :	Cycle Tyres, Cycle Tubes and Auto Tubes

GENERAL INFORMATION

No. of Employees :	1500
Bankers :	v Canara Bank, Bharat Nagar Chowk, Ludhiana-141001, Punjab, India v Industrial Development Bank of India, IDBI Tower, Cuffe Parade, Mumbai-400005, Maharashtra

Banking Relations :	--
Auditors :
Name :	S K Loonker & Company Chartered Accountants
Address :	Maharashtra

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
7500000	Equity Shares	Rs.10/- each	Rs.75.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6730800	Equity Shares	Rs.10/- each	Rs.67.308 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2005	31.03.2004	31.03.2003
SHAREHOLDERS FUNDS
1] Share Capital		67.300	67.300	67.300
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		95.100	85.400	74.400
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		162.400	152.700	141.700
LOAN FUNDS
1] Secured Loans		236.800	184.200	173.600
2] Unsecured Loans		32.700	55.900	71.000
TOTAL BORROWING		269.500	240.100	244.600
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		431.900	392.800	386.300
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		117.600	106.000	110.300
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.300
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	54.800	49.100	64.100
	Sundry Debtors	424.300	437.400	417.700
	Cash & Bank Balances	34.000	23.800	19.300
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	43.200	44.200	32.600
Total Current Assets		556.300	554.500	533.700
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	229.200	246.300	242.700
	Provisions	12.800	21.400	15.300
Total Current Liabilities		242.000	267.700	258.000
Net Current Assets		314.300	286.800	275.700
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		431.900	392.800	386.300

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2005	31.03.2004	31.03.2003
Sales Turnover		1325.600	1233.500	1016.500
Other Income		7.700	(10.400)	29.700
Total Income		1333.300	1223.100	1046.200
Profit/(Loss) Before Tax		19.700	21.800	16.500
Provision for Taxation		6.700	6.100	5.700
Profit/(Loss) After Tax		13.000	15.700	10.800
Expenditures :
	Cost of Goods Sold
	Manufacturing Expenses	50.200	44.600	42.600
	Administrative Expenses	269.200	282.500	199.100
	Raw Material Consumed	775.900	669.500	584.000
	Miscellaneous Expenses	26.000	25.900	23.400
	Salaries, Wages, Bonus, etc.	96.300	82.300	76.900
	Interest	23.000	24.700	23.200
	Power & Fuel	52.000	52.700	51.600
	Depreciation & Amortization	14.700	14.100	12.900
	Other Expenditure	6.300	5.000	16.000
Total Expenditure		1313.600	1201.300	1029.700

KEY RATIOS

PARTICULARS	31.03.2005	31.03.2004	31.03.2003
Debt-Equity Ratio	1.74	1.83	1.68
Long Term Debt-Equity Ratio	1.74	1.83	1.68
Current Ratio	2.18	2.07	2.06
TURNOVER RATIOS
Fixed Assets	7.41	5.11	4.57
Inventory	25.52	21.79	17.83
Debtors	3.08	2.89	2.57
Interest Cover Ratio	1.86	1.88	1.71
Operating Profit Margin(%)	4.33	4.91	5.17
Profit Before Interest And Tax Margin(%)	3.22	3.77	3.91
Cash Profit Margin(%)	2.09	2.42	2.33
Adjusted Net Profit Margin(%)	0.98	1.27	1.06
Return On Capital Employed(%)	10.64	12.41	11.38
Return On Net Worth(%)	10.18	13.79	9.67

STOCK PRICES

Face Value	Rs.10.00/-
High	Rs.0.00/-
Low	Rs.0.00/-

LOCAL AGENCY FURTHER INFORMATION

Form 8 Particular for creation or modification of charges

Corporation identity number or foreign company registrations number of the company	U25100MH1981PLC023895
Name of the company	PODDAR TYRES LIMITED
Address	5-D, Court Chambers, 35, New Marine Lines, Mumbai-400020, Maharashtra, India
This Form is for	Modification of charge
Type of Charges	Hypothecation
Particular of the charge holder	Canara Bank, Bharat Nagar Chowk, Ludhiana-141001, Punjab, India E-Mail : fcs.lud@canarabank.co.in
Amount Secure by the charge	Rs.117.500 millions
Description of the property charge whether it is a charge on	Plant and Machinery Furniture and Fixtures Stock in Trade Book debts Vehicles
Modification charge Charge identification number of the charge to be modified	90215715

Name of the company	PODDAR TYRES LIMITED
Presented By	Mr. Kamalkumar Poddar
1) Date and description of instrument creating the change	Unattested memorandum of hypothecation executed on 09.04.1992
2) Amount secured by the charge/amount owing on the securities of charge	Rs.7.500 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	The whole of the movable properties of the company both present and future (save and except current asserts and the machinery hypothecated to the Punjab State Industrial; Development Corporation Limited to secure its loan of Rs.10.000 millions under agreement of hypothecation dated 16.02.1990) whether installed or not and whether now lying loose or in cases of which are now lying or stored in or about or shall hereafter from time to time during the continuance of the security be brought into or upon or be stored or be in or about the company’s factories, premises and godown or wherever else the same may be or be held by any party to the order of disposition of the company or in the course of transit or delivery, howsoever and where so ever with possession of the company and either by way of substitution or addition.
4) Gist of the terms and conditions and extent and operation of the charge.	As per annexure I
5) Name and Address and description of the person entitled to the charge.	Bank of Baroda, 3, Walchand Hirachand Marg, Mumbai-400038
6) Date and brief description of instrument modifying the charge	No instrument executed. Mortgage created on 24.05.1995 by depositing title deeds of the company’s immovable properties at G T Road, V and P Jugiana, District Ludhiana in the state of Punjab.
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.	Original charge created on 09.04.1992 is further modified by providing additional security by mortgage by deposit of the title deeds of Company’s immovable property at V and P O Jugiana, Tehsil and District Ludhiana in the state of Punjab that piece and parcel of vasant land and ground bearing Khewat No.128/253, 243/499, 191/394-395-396, 335/458, 231/468-469, 232/470-471, 145/288-289-290, (present Khata No. i. e. Khewat/Khatauni Nos.141/270, 160/308-309-310, 246/468, 253/476-477, 254/478-479, 265/504-505-506, 212/401-402-403-404) Khasra No.385, 382, 393, 394, 392, 395, 396, 419 as entered in the Jamabandi for the year 1972-73 situated in V and P O. Jugiana, Tehsil and District Ludhiana, in the registration district and subn district, Ludhiana measuring 47 Kanals 17. ½ Marine bounded as follows that is to say : On or towards the North by land of Govind Rubber Limited On or towards the South by road On or towards the East by Metafed Road (Jugiana road) On or towards the West by land of Yograj Singh. Together with all buildings and structures thereon and all plant and machinery, fixtures and fittings attached to the earth or permanently fastened to anything attached to the earth.

Website Details :

Corporate Info

Subject was incorporated in the year 1981 with the object of manufacturing Tubes and Tyres
for Bicycles, Scooters and auto rickshaws.

The company has been promoted by the Poddar Group who have varied intrests, viz, rubber, Textiles etc. The factory is located in Ludhiana in Punjab, with modern facilities for manufacturing products, catering to the Bicycle, Scooter and Three wheeler Industry. Commercial Production started in 1982.

Poddar Group is in the Rubber Industry for the past 35 years. The Group has excellent reputation and enjoys the
confidence of the customers, dealers and suppliers. The company is managed by the team of professionals under the able guidance and leadership of its promoter Directors, Mr. Kamal Poddar and Mr. Arun Poddar. The company has annual turnover of Rs 1000 millions.

Infrastructure

The Company has modern manufacturing facilities at Ludhiana in Punjab. The unit is located over an area of
approximately 35500 sq. meter plot, is employing labour in excess of 1700. The latest technology, plant and
equipments are used in the manufacturing process with accent on quality and   durability. Their R&D Department
is equipped with the most modern computerized testing equipments with Production capacity of 12 million tyres
and  20 million tubes per annum .The company is an "Export Worthy Unit "under" In Process
Quality Control System" (IPQC) declared by the Export Inspection Council , Government of India. The
Company has the privilege to be the first in the country to accredit ISI Quality Certification for 
Cycle-Rickshaw Tyres and Tubes .The Bicycle, Rickshaw, Moped , Scooter , Three Wheeler and Motor Bike
 Tyres nad Tubes pass through stringent quality control systems under Total Quality Management (TQM) 
concept to provide best quality products to the customers for utmost satisfaction .

Marketing

The Company markets its products under the brand name ' BEDROCK ' which is widely accepted by the consumers, dealers and distributors. The domestic market share of the Company is around 9%. They have 50 Sales Branch Offices all over India and a network of over 10,000 dealers. They have also been supplying Tyres and Tubes to OEM namely, Hero Cycles Limited, Avon Cycles Limited and T. I. cycles Limited etc. Of late, a major thrust area has been to exports and have been exporting Tyers and Tubes to Countries like Mexico, Guatemala, Panama, West Indies, Ecuador, Venezuela, Egypt, Seria, Germany, Nigeria, Ethiopia, Kuwait, Madagascar, Tanzania, Kenya, Uganda, Malawi, Senegal, Zimbabwe, Iran, Srilanka etc. During the current year the Company has initiated an export development programme which would result in exponential increase in their exports in the coming years. they have also been exporting ATB, MTB, BMX, RACING and usual range of Tyres and Tubes to the Countries of  South-Central America, African continent and Middle East for the past one decade.
The distribution network is being augmented by establishing direct contact with the consumers through development of direct interaction. This enables the company to get a faster feedback from the market regarding the product acceptability, changes required to suit local conditions etc., apart from facilitating higher sales.

Management

Poddar Group is known for their expertise in Rubber and allied Products. The Directors have vast experience in Rubber and Textiles. The company is professionally managed under the able guidance from its Promoter Directors, Mr. Arun Poddar and Mr. Kamal Poddar. Mr. Arun Poddar is an Engineer by profession and mainly concentrates on the product and technical developments. Mr. Kamal Poddar, with his commercial background. ably manages the finance and administrative functions of the company.

Future Plans

The immediate objective of the company is to consolidate its position in Export market of Cycle Tyres and Tubes and increase the market share.

The research and development team is continuously in the process of developing new sizes / varieties of Tyres and Tubes which are long lasting and comply with international norms prescribed for safety. This in turn would help to increase exports, which as stated earlier, has been identified as the major thrust area in the coming years. Very shortly the company is all set to be accredited with ISO 9002 certification from SGS, the most reputed Group in the field of ISO 9000 certifications.

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.44.27
UK Pound	1	Rs.86.87
Euro	1	Rs.58.53

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	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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/normal.	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