MIRA INFORM REPORT

 

Report Date :

16.02.2011

 

IDENTIFICATION DETAILS

 

Name :

STERLING RUBBERS PRIVATE LIMITED

 

 

Registered Office :

Plot No 17, 3rd Cross Street, V.G.P. Amudha Nagar, Maduravoyal, Chennai – 600095, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

19.04.1985

 

 

Com. Reg. No.:

18-011779

 

 

CIN No.:

[Company Identification No.]

U25110TN1985PTC011779

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CHES03192A

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer, Trader of Tyre and Tube Flaps

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (26)

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

Maximum Credit Limit :

USD 8100

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. Trade relations are reported as fair. Business is active. Payments are reported to be slow.

 

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

 

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 – April 1, 2010

 

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

LOCATIONS

 

Registered Office :

Plot No 17, 3rd Cross Street, V.G.P. Amudha Nagar, Maduravoyal, Chennai – 600095, Tamilnadu, India

Tel. No.:

91-44-23781759

Fax No.:

91-44-23781759

E-Mail :

Sterlingrubbers@gmail.com

sales@sterlingrubbers.in

Website :

http://www.sterlingrubbers.in

 

 

DIRECTORS

 

As on 30.09.2010

Name :

Mr. Ponnandai Ramalingam Shanmugamurthi

Designation :

Whole-time Director

Address :

24, T.S.V. Kiol Street, Mylapore, Chennai – 600010, Tamilnadu, India

Date of Birth/Age :

16.05.1966

Date of Appointment :

20.11.1997

DIN or Income-tax PAN :

00826093

 

 

Name :

Mr. Radhakrishnan Asaithambi

Designation :

Whole-time Director

Address :

1/18, A.S.A. Street, Karthikeyan Nagar, Maduravoyal, Chennai – 600095, Tamilnadu, India

Date of Birth/Age :

02.04.1961

Date of Appointment :

30.12.2006

DIN or Income-tax PAN :

00826083

Proprietorship held in Proprietorship Firm :

Indo Mech

Address : 16, Alapakkam Road, Maduravoyal, Chennai – 602102, Tamilnadu, India

 

 

Name :

Mr. Kalyanaraman Sathiamoorthy

Designation :

Director

Address :

Plot No.41, Door No.B/1A, Charukesi, 2nd Main Road, Purushothaman Nagar, Chennai – 600044, Tamilnadu, India

Date of Birth/Age :

20.06.1965

Date of Appointment :

03.09.2008

DIN or Income-tax PAN :

02286783

 

 

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2010

Names of Shareholders

 

No. of Shares

Mr. Ponnandai Ramalingam Shanmugamurthi

 

42639

Radhakrishnan Asaithambi

 

65000

Kalyanaraman Sathiamoorthy

 

66500

B.T. Chandrasekhar

 

3000

V. Ravishankar

 

16000

B.S. Tholasiraman

 

3500

P.K. Hariharan

 

6000

G. Solomon Raju

 

4000

K. Anrumuga Achari

 

1000

G.M. Jayaraman

 

1000

B.T. Saroja

 

3000

B.t. Ravikumar

 

3000

B.C.Rameshwari

 

10000

R. Gayathri

 

17500

Lalitha

 

2500

Kasthuri

 

2500

Lakshmi

 

2500

R. Vijaykumar

 

2500

B.R. Shyamala

 

2000

V. Jayanthi

 

2000

Kalpana Murthy

 

42589

P.K.Ramalingam

 

2000

Saroja Ramalingam

 

2000

K.M. Vadivelu

 

6500

K.V. Anuradha

 

6500

V. Jayashankar

 

7000

V. Bhavanishankar

 

7000

A. Vijaya

 

25000

R. Nandhini

 

14083

A. Chandru

 

17000

V. Shivashankar

 

2500

Ushanandhini

 

2500

R. Sangamithra

 

10000

Shakthipriyadarshini (Minor Gardian V. Ravishankaran)

 

10000

J. Devika

 

2500

B. Babu

 

34667

S. Padma

 

10000

S. Rajeshwari

 

10000

K. Gurumurthy

 

1000

K. balaraman

 

1000

S. Kalyanaraman

 

1000

K. Kamala

 

1000

G. Ramesh

 

4083

Divyamurthy

 

23939

 

Total

500000

 

As on 30.09.2010

 

Category

Percentage

 

 

Directors or relatives of Directors

100.00

 

 

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, Trader of Tyre and Tube Flaps

 

 

Products :

Item Code

Product Description

4002

Solid Tyres And Rubberised

 

 

 

PRODUCTION STATUS AS ON 31.03.2010

 

Particulars

Unit

Actual Production

 

 

 

Solid Tyres  :

Nos.

3758

 

 

 

 

 

GENERAL INFORMATION

 

Bankers :
  • American Express Bank
  • Karur Vyasya Bank, Triplicane Branch
  • Punjab National Bank

Punjab National Bank, Purasawalkam Branch, Madras – 600084, India

 

 

Facilities :

 

31.03.2010

(Rs. in million)

31.03.2009

(Rs. in million)

Secured Loan:

(From Punjab National Bank)

1.988

2.080

Unsecured loan

  • From Directors and Relatives
  • Loan From Others
  • From American Express bank
  • Cholamandalam DBS

 

0.661

0.000

0.000

0.036

 

0.318

0.040

0.155

0.221

Total

2.685

2.814

 

Note : Secured by Hypothecation of Finished Goods, Semi Finished Goods, Raw Materials and Book Debts Personally Guaranteed by Directors of the Company.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

 Abhay Jain And Company

Chartered Accountant

Address :

Room No.72, 3rd Floor, 4/16, Sunkumara Street, Chennai – 600001, Tamilnadu, India

Tel. No.:

91-44-25382567 / 25382360

PAN No. :

AABPL7083N

 

 

CAPITAL STRUCTURE

 

Authorised Capital :  As on 31.03.2010

 

No. of Shares

Type

Value

Amount

 

 

 

 

500000

Equity Shares

Rs. 10/- each

Rs. 5.000 million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :  As on 31.03.2010

 

No. of Shares

Type

Value

Amount

 

 

 

 

500000

Equity Shares

Rs. 10/- each

Rs. 5.000 million

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2010

31.03.2009

31.03.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

5.000

5.000

2.500

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

0.000

0.000

0.000

4] (Accumulated Losses)

(2.962)

(2.198)

(2.264)

NETWORTH

2.038

2.802

0.236

LOAN FUNDS

 

 

 

1] Secured Loans

1.988

2.080

2.792

2] Unsecured Loans

0.697

0.734

0.738

TOTAL BORROWING

2.685

2.814

3.530

DEFERRED TAX LIABILITIES

0.073

0.067

0.072

 

 

 

 

TOTAL

4.796

5.683

3.838

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

0.295

0.372

0.189

Capital work-in-progress

0.000

0.000

0.161

 

 

 

 

INVESTMENT

0.025

0.025

0.025

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
2.556

2.636

1.770

 

Sundry Debtors
4.485

4.288

3.764

 

Cash & Bank Balances
0.096

0.062

0.246

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
1.113

1.311

1.054

Total Current Assets
8.250

8.297

6.834

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
3.161

2.449

2.907

 

Other Current Liabilities
0.613

0.548

0.441

 

Provisions
0.000

0.014

0.023

Total Current Liabilities
3.774

3.011

3.371

Net Current Assets
4.476

5.286

3.463

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

4.796

5.683

3.838

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

Income

 

 

 

 

 

Other Income

 

 

 

 

 

TOTAL                                    

13.868

15.930

16.541

 

 

 

 

 

Less

EXPENSES

 

 

 

Office Expenses

 

 

 

 

 

Administrative Expenses

 

 

 

 

 

Advertising Expenses

 

 

 

 

TOTAL                                    

14.521

15.854

16.117

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

(0.653)

0.076

0.424

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

(0.105)

0.000

0.000

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              

(0.758)

0.076

0.424

 

 

 

 

 

Less

TAX                                                                 

0.006

0.009

0.017

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                 

(0.764)

0.067

0.407

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(2.198)

(2.265)

(2.672)

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(2.962)

(2.198)

(2.265)

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share (Rs.)

1.53

--

--

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
(5.51)

0.42

2.46

 

 
 

 

 

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
(8.87)

0.88

6.04

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
(0.38)

0.03

1.80

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
3.17

2.08

29.24

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.19

2.76

2.03

 

 

LOCAL AGENCY FURTHER INFORMATION

 

INDUSTRY OVERVIEW :

 

During the year, the company recorded a sales turnover of Rs. 13.096 million as against Rs. 15.384 million during the previous year and has recorded a net loss before tax of Rs. 0.758 million as against net profit of Rs. 0.076 million during previous year. During the year the company has recorded a loss on account of volatility in Raw Material prices, higher depreciation and other related factors. The company is taking measures that will enable it to pass on the part of raw material prices in tune with the competition.

 

Despite stiff competition and continued recession, the directors are taking all possible efforts to improve the product quality and with the good market response and better order booking position, the directors are confident of achieving better performance in the ensuring year

 

FIXED ASSETS

  • Furniture
  • Moulds
  • Office Equipments
  • Computers
  • Tools and Fixtures
  • Hydralic Press
  • Mixing Mill
  • Swaraj Mazda (Van)
  • Screw Press
  • Plant and Machinery
  • Air Conditioner
  • Cycle
  • Angle Grinder
  • Chain Pully Block
  • Weigh Machine
  • Hardness Tester

 

Bankers Charges Report as per Registry

 

 

Name of the company

STERLING RUBBERS PRIVATE LIMITED

Presented By

Punjab National Bank, Purasawalkam Branch, Madras – 600084.

1) Date and description of instrument creating the change

02.05.1989

a) Hypothecation Deed and

b) Agreement for CC/OD on A B C

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

Rs. 0.200 Million consisting of CC Limit of Rs. 0.100 million and A B C Overdraft Limit of Rs. 0.100 million

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

a) Hypothecation of goods of the company stock as cushion / Solid Type Antivibration Mounts, Wheel Discs, Rims etc.

 

b) Hypothecation of Book Debts arising of negotiation of bills / cheques.

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

As per Agreements.

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

Punjab National Bank, Purasawalkam Branch, Madras – 600084.

6) Date  and brief description of instrument modifying the charge
  • Agreement of Hypothecation for OD (ABC) dated 18.12.1995
  • Agreement of Hypothecation of clean DD dated 18.12.1995
  • Agreement of Hypothecation for Documentary DD dated 18.12.1995
  • Agreement for Loan/Cash Credit/ Over Dreaft dated 18.12.1995.

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

Enhanced

CC - 0.400 million

0.400 million

OD (ABC) - 0.700 million

1.200 million

Clean DD -  NA

0.300 million

Doc. DD - 0.200 million

0.300 million

 

Total Limit enhanced from 1.300 million to 2.200 million

 

a) Interest

 

  • Cash Credit  @  19.75%
  • Clean DD Limit  @  23.25%
  • Doc. O.D.  @  23.25%
  • OD (ABC)  @  23.205%

 

b) All other terms and conditions of original charge remain the same.

 

AS PER WEB DETAILS

 

The company founded in 1985, so far it never looked back even on stiff competition and growing steadily with the great support of their Original Equipment Manufactures, Distributors and end-users. All these are synchronized with consistent quality, customer service and economic value. Sterling Rubbers Private Limited has a young and dynamic managerial structure, has achieved over the decades of recognized importance both on the national as well as international level. Sterling Rubbers Private Limited., more than a decade old Company, is located in one of the metropolitian city of INDIA with capacity of 50 Tons per month.

The Plant :

The Plant is organized into three main departments :

Mixing

Building

Molding & curing

Each production line is monitored by experience skilled personal assuring zero defects in end process.

Wide Range:

Shakthi has got wide range of moulds from 400x8 to 12x20 with different tread pattern to match individual needs.

 

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. 45.45

UK Pound

1

Rs. 72.90

Euro

1

Rs. 61.43

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

2

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

2

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

2

--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

NO

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

26

 

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.