MIRA INFORM REPORT

 

 

 

Report Date :

12.12.2008

 

IDENTIFICATION DETAILS

 

Name :

FREEDOM RUBBER LIMITED

 

 

Formerly Known As :

PARVATI TYRES AND TUBES PRIVATE LIMITED

 

 

Registered Office :

167, Focal Point, Mehta Road, Amritsar – 143 002, Punjab

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

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 and 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 130000

 

 

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

 

 

Name :

Mr. Kanwaljit Singh

Designation :

Additional Director

Address :

Freedom House, Opposite Dental Hostel, Batala Road, Amritsar – 143 001, Punjab, India 

Date of Birth/Age :

02.01.1961

Date of Appointment :

21.01.2008

 

 

Name :

Mr. Parteek Singh

Designation :

Additional Director

Address :

A 235-236 Ranjit Avenue, Amritsar – 143 001, Punjab, India

Date of Birth/Age :

24.08.1976

Date of Appointment :

21.01.2008

  

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(As on 29.09.2007) 

Names of Shareholders

No. of Shares

Rajinder Singh

103350

Ajit Singh

114700

Barinder Singh

108100

Kanwaljit Singh

111360

Harminder Singh

70400

Gurinder Singh

56860

Sonia Arora

9100

Rajinder Kaur

17800

Hari Singh

9100

Mandeep Jaur

1560

Gurpartap Singh

24700

Rajbir Singh

13750

Parteek Singh

22500

Amrik Singh

81100

Ramneek Singh

18950

Kulwant Kaur

51200

 

(As on 30.09.2007)

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 and tubes, rubber and rubber related products.

 

 

Products :

·         Tyres

·         Tubes

·         Rubber and Allied Products

 

 

Exports :

 

Countries :

·         Brazil

·         Italy

·         Egypt

·         Malawi

·         Mozambique

·         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

·         B J Enterprises

·         Diamond Mills

·         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 :

·         ACME International

·         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

 

·         Union Bank of India

Majith Mandi Branch, Amritsar – 143 001, Punjab, India  

 

·         ICICI Bank Limited

·         HDFC Bank Limited

 

 

Facilities :

Secured Loans

(As on 31.03.2007)

Rs. in millions

Karnataka Bank C/C A/c

(Secured against stocks of all types, book debts, plant and machinery and factory land and building of the company in addition to assets of Directors / Guarantors etc.)

20.397

Karnataka Bank Limited (Car Loan)

(Secured against Car)

0.184

Karnataka Bank Limited (Term Loan)

(Secured against plant and machinery and building in addition to assets of Directors / Guarantors etc.)

0.350

Karnataka Bank Limited – Gen Set Loan

(Secured against Generator Set)

0.135

Karnataka Bank Limited – Packing Credit

(Secured against stocks of all types book debts, plant and machinery and factory land and building of the company in addition to assets of Directors / Guarantors etc.) 

3.008

Karnataka Bank Limited – Post Shipment

(Secured against stocks of all types book debts, plant and machinery and factory land and building of the company in addition to assets of Directors / Guarantors etc.) 

4.690

Karnataka Bank Limited - Bills Purchased

(Secured against stocks of all types book debts, plant and machinery and factory land and building of the company in addition to assets of Directors / Guarantors etc.) 

3.703

ICICI Bank Limited – Car Loan

(Secured against Car)

0.030

ICICI Bank Limited – Car Loan

(Secured against Car)

0.324

ICICI Bank Limited – Car Loan

(Secured against Car)

0.589

 

 

Total

33.410

 

 

 

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

 

Authorised Capital :

No. of Shares

Type

Value

Amount

2500000

Equity Shares

Rs.10/- each

Rs.25.000 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

 

31.03.2007

31.03.2006

31.03.2005

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

9.558

9.558

9.558

2] Share Application Money

1.493

0.493

0.493

3] Reserves & Surplus

15.131

13.551

13.295

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

26.182

23.602

23.346

LOAN FUNDS

 

 

 

1] Secured Loans

33.410

28.048

30.842

2] Unsecured Loans

1.907

0.107

0.107

TOTAL BORROWING

35.317

28.155

30.949

DEFERRED TAX LIABILITIES

3.541

3.695

3.796

 

 

 

 

TOTAL

65.040

55.452

58.091

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

18.970

19.432

20.878

Capital work-in-progress

0.000

0.000 

 0.000

 

 

 

 

INVESTMENT

0.497

0.497

0.497

 DEFERREX TAX ASSETS

 0.000

0.000 

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
14.504
11.652

15.503

 

Sundry Debtors
37.580
42.680

37.331

 

Cash & Bank Balances
4.999
4.165

3.263

 

Other Current Assets
0.000
0.000

0.000

 

Loans & Advances
11.108
6.097

5.529

Total Current Assets
68.191
64.594

61.626

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
22.150
27.988

24.245

 

Provisions
0.468
1.083

0.665

Total Current Liabilities
22.618
29.071

24.910

Net Current Assets
45.573
35.523

36.716

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

65.040

55.452

58.091

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2007

31.03.2006

31.03.2005

Sales Turnover

128.011

118.801

145.912

Other Income

4.402

1.824

 0.000

Total Income

 132.413

120.625

 145.912

 

 

 

 

Profit/(Loss) Before Tax

0.486

0.470

1.282

Provision for Taxation

(0.026)

(0.214)

0.335

Profit/(Loss) After Tax

0.512

0.684

0.947

 

 

 

 

Earnings in Foreign Currency :

NA

NA

5.566

 

 

 

 

Expenditures :

 

 

 

 

Raw Material Consumed

94.622

85.483

0.000

 

Consumption of stores and spares parts

1.173

1.030

0.000

 

Administrative Expenses

0.000

0.000

0.053

 

Salaries, Wages, Bonus, etc.

6.418

6.414

0.400

 

Managerial Remuneration

0.360

0.360

0.487

 

Payment to Auditors

0.010

0.014

0.029

 

Interest

3.732

3.186

2.921

 

Insurance Expenses

0.311

0.285

0.313

 

Power & Fuel

10.796

10.730

1.476

 

Depreciation & Amortization

1.785

1.793

1.727

 

Other Expenditure

12.720

10.860

137.224

Total Expenditure

 131.927

120.155

144.630

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2007

31.03.2006

31.03.2005

PAT / Total Income

(%)
0.39

0.57

0.65

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
0.38

0.40

0.88

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
0.01

0.56

1.55

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.02

0.02

0.05

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
2.21

2.42

2.39

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
3.01

2.22

2.47

 

 

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 05.02.2001

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

Overdraft limit of Rs.17.500 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

Hypothecation of stock of raw materials, stock in process, finished goods and book debts arising out of genuine trade transactions

 

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.

Interest @ 15% subject to change from time to time

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 – 143 001, Punjab, India

6) Date  and brief description of instrument modifying the charge

Hypothecation agreement dated 10.11.2004 for Rs.21.000 millions

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 is the renewal of existing overdraft and foreign currency denominated loan facility with existing limit of Rs.21.000 millions.

 

All other terms and conditions remaining the same.

 

Extent and operation of charge 100%

 

Further the limit is secured by

 

·         Hypothecation of stocks of raw materials, semi finished and finished goods, goods in transit, consumables and book dents arising out of genuine trade transactions.

·         Hypothecation of plant and Machineries and fixed assets belonging to the company

·         Equitable mortgage of the factory land and building situated at 167, Focal Point, Amritsar belonging to the company

 

 

This form is for

Modification 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

·         Book debts

·         Movable Property (not being pledge)

·         Floating charge

·         Others

o        Stock and Bills 

Particular of charge holder

Union Bank of India

Majith Mandi Branch, Amritsar – 143 001, Punjab, India  

Nature of description of the instrument creating or modifying the charge

Memorandum (Company)

Date of instrument Creating the charge

16.02.2008

Amount secured by the charge

Rs.55.000 millions

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

Rate of Interest :

For Term Loan Limit – Present rate 14.75% p.a. subject to revision by the Bank from time to time.

For Cash Credit Limit – Present Rate 14.25% % p.a. subject to revision by the Bank from time to time.

For Packing Credit Limit – Present rate 8.75% p.a. subject to revision by the Bank from time to time.

For Bills Limit - Present rate 8.75% p.a. subject to revision by the Bank from time to time.

 

Terms of repayment :

Cash Credit Limit Repayable on Demand

Term Loan Limit Repayable in 42 instalments of Rs.0.119 million each Plus interest

Packing Credit, L/C and Bills purchase Limit repayable as per Bank Norms

 

Margin :

For Term Loan Limit, Cash Credit Limit, Packing Credit Limit and L/C Limit :- 25%

 

Extent and operation of the charge :

100 %

 

Others

Limits stand as :-

Cash Credit – Rs.25.000 millions, Term Loan Rs.5.000 millions, Packing Credit – Rs.10.000 millions, Bills Purchase – Rs.10.000 millions and L/C Limit – Rs.5.000 millions 

Short particulars of the property charged

Cash Credit Limit is secured by stocks and Book Debts of the company. Term Loan limit is secured by Plant and Machinery and other movable assets of the company. Packing credit Limit is secured by stock of raw materials, work in progress and finished goods, bills purchase limit is secured by Hypothecation of Bills of all types.   

 

Web Details

 

Profile

 

Bicycles, even today, are one of the most commonly used forms of transport in India. Hordes of factory workers could be seen going to earn their bread and butter, plying their bicycles. In an endeavor to add to the overall features and image of this mode of transport, Subject was established in the year 1992. They are a prominent manufacturer and exporter of a diverse range of cycle tyres and tubes, rubber and rubber related products. The tyres and tubes are available in both semi heavy duty and extra duty ranges. They are also an importer, getting varied forms of raw materials for these cycles, like natural rubber, synthetic rubber, carbon black, rubber chemicals, polyester cord, nylon cord, etc. from many countries. All these products are exclusively used in manufacturing different forms of cycles like kids' cycles, adults' cycles, etc.


They make the products centering around excellent quality. They are extremely sturdy and are long lasting. The efforts are directed towards ultimate customer satisfaction, hence, they make sure that the products are available on time to them and at the most competitive prices. Their valuable feedback and suggestion are the constant source of inspiration to them in making consistent improvisation in the product range. The products are exported to Brazil, Italy, Egypt, Malawi, Mozambique, Kenya and many other countries. The export percentage has now reached 95%. They are also a member of Chemicals and Allied Products Export Promotion Council (CAPEXIL).

 

 

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.48.52

UK Pound

1

Rs.72.62

Euro

1

Rs.63.76

 

 

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