MIRA INFORM REPORT

Report Date :

06.05.2011

IDENTIFICATION DETAILS

Name :	PODDAR TYRES LIMITED
Formerly Known As :	PODDAR TYRES PRIVATE LIMITED
Registered Office :	5D, Court Chambers, 35, New Marine Lines, Mumbai – 400 020, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	13.02.1981
Com. Reg. No.:	11-023895
Capital Investment / Paid-up Capital :	Rs. 67.308 millions
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
No. of Employees :	1500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 1300000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. General financial position is good. Trade relations are reported as fair. Business is active. Payments are reported to be correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INFORMATION DENIDED BY

Management non cooperative.

LOCATIONS

Registered Office :	5D, Court Chambers, 35, New Marine Lines, Mumbai – 400 020, Maharashtra, India
Tel. No.:	91-22-22006554
Website :	http://www.bedrocktyres.com
Administrative Office :	6-B, Court Chambers, 35, New Marine Lines, Mumbai-400020, Maharashtra, India
Tel. No.:	91-22-22006554 / 3629 / 4812 / 8427
Fax No.:	91-22-22080743 / 22080745
E-Mail :	bedrock@bom5.vsnl.net.in
Factory :	Poddar Nagar, G T Road, Jugiana, Ludhiana-141420, India
Tel. No.:	91-161-2511556 / 57 / 58 / 59 / 60
Fax No.:	91-161-2511566
E-Mail :	info@bedrocktyres.com poddar@jia.vsnl.net.in poddartyres@sify.com

DIRECTORS

AS ON 30.09.2010

Name :	Mr. Arunkumar N Poddar
Designation :	Director
Address :	Mount Unique, 62A, Peddar Road, Mumbai – 400 026, Maharashtra, India
Date of Birth/Age :	28.03.1954
Date of Appointment :	13.02.1981
DIN No :	00761163
Name :	Mr. Kamalkumar B Poddar
Designation :	Director
Address :	Mount Unique, 62A, Peddar Road, Mumbai – 400 026, Maharashtra, India
Date of Birth/Age :	23.05.1952
Date of Appointment :	13.02.1981
DIN No :	00759905
Name :	Mr. Rohit A Poddar
Designation :	Director
Address :	84, Mount Unique, 11^th Floor, 62/A, Pedde r Road, Mumbai – 400 026, Maharashtra, India
Date of Birth/Age :	10.07.1986
Date of Appointment :	26.09.2008
DIN No :	02229034

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Santoshkumar N Poddar	17
Arunkumar N. Poddar	184
Matushree Investment Private Limited, India	8217
Kamalkumar B. Poddar	39039
Shubhlabh Investment Private Limited, India	4046
Aruna A Poddar and Arunkumar Poddar	13500
Kamalkumar Poddar and Baluram Poddar	125
Draupadidevi B. Poddar and Baluram Poddar	63
Shardadevi Poddar and Kamalkumar Poddar	19816
Famous Silk Mills Private Limited, India	11000
Arunkumar N. Poddar HUF	121107
Sitadevi N Poddar Joint Narayanprasad Poddar	2
Aruna A Poddar Joint Arunkumar Poddar	12
Rachana Poddar	44512
Rohit A Poddar	44512
Vimal Poddar	38
Charula Poddar	20
Gautam Poddar	20
Ganurang Poddar	20
Aruna Poddar	12904
Rohit Impex Private Limited, India	69159
Darupadidevi Poddar	19062
Kamalkumar and Company HUF	39304
Asha N Poddar Joint Narayanprasad Poddar	40000
Baluram Poddar Family Trust	5
B K Poddar HUF	5
Kamal Kumar Draupadidevi HUF	5
Baluram Poddar and Company	5
Anupriya K Poddar	20
Anuradha K Poddar	50
Total	486769

AS ON 30.09.2010

Names of Preference Shareholders	No. of Shares
Arunkumar N Poddar	70
Rohit Impex Private Limited, India	42780
Rohit A Poddar	24684
Rachana A Poddar	24737
Arunkumar Poddar HUF	41873
Kamalkumar Poddar	10000
Shardadevi K Poddar	28000
Kamalkumar and Company HUF	4167
Draupadidevi B Poddar	10000
Total	186311

AS ON 30.09.2010

Equity Share Breakup		Percentage of Holding
Category
Bodies corporate		18.99
Directors or relatives of directors		81.01
	Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers of Tyres and Tubes for Cycles and Cycle Rickshaws
Products :	· Cycle Rick. Tyres - 40115000 · Cycle Tubes - 40132000 · Auto Tubes – 40139002 · Auto Tyre - 40114001
Brand Names :	BEDROCK

PRODUCTION STATUS (As On : 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Cycle and Rick Tyres	--	21000000	13000000	11743116
Auto Tyres	--	1200000	500000	22205
Auto Tubes	--	3000000	1500000	1206696
Cycle / Rick Tubes	--	30000000	27500000	18709948

GENERAL INFORMATION

No. of Employees :

1500 (Approximately)

Bankers :

· Canara Bank

Bharat Nagar Chowk, Ludhiana – 141 001, Punjab, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
1. From Canara Bank
a) Cash Credit and Book Debts Facilities	0.000	(7.766)
b) Bill Discounting Facilities	1.892	2.616
The above facilities are secured by way of first charge under hypothecation of raw materials, work in process, stores and spares, finished goods, and debtors of the company and are personally guaranteed by some of the directors
2. Bill Discounting facilities from Small Industries Development Bank of India Secured by way of 2^nd charge against hypothecation of moveable Assets viz., plant and machinery etc.	0.000	31.471
3. Deferred Payments :	1.087	2.414
Vehicle loan from Banks are Secured by hypothecation of the vehicles acquired out of the proceeds of the loans
Total	2.979	28.735
Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
a. Loans from Banks
Bill Discounting facilities from Canbank Factor Limited	0.000	16.398
b. Security Deposits and Loans
Security deposit from consignee agents / customers	6.231	31.012
Loan from shareholders	53.200	32.024
Inter Corporate Loans	0.000	0.549
Total	59.431	79.983

Banking Relations :
Auditors :
Name :	S K Loonker and Company Chartered Accountant
Address :	11/13, Botawala Building, 2^nd Floor, Room No. 5, Horniman Circle, Fort, Mumbai – 400 023, Maharashtra, India
Tel. No.:	91-22-22673313
Fax No.:	91-22-22662574
Associates:	· Bedrock Limited · Vishal Sales Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
550000	Equity Shares	Rs. 100/- each	Rs. 55.000 millions
200000	12% Cumulative Redeemable Preference Shares	Rs. 100/- each	Rs. 20.000 millions
	Total		Rs. 75.000 millions

Issued:

No. of Shares	Type	Value	Amount
550000	Equity Shares	Rs. 100/- each	Rs. 55.000 millions
200000	12% Cumulative Redeemable Preference Shares	Rs. 100/- each	Rs. 20.000 millions
	Total		Rs. 75.000 millions

Subscribed & Paid-up Capital

No. of Shares	Type	Value	Amount
486769	Equity Shares	Rs. 100/- each	Rs. 48.677 millions
186311	12% Cumulative Redeemable Preference Shares	Rs. 100/- each	Rs. 18.631 millions
	Total		Rs. 67.308 millions

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		67.308	67.308	67.308
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		261.863	156.179	123.349
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		329.171	223.487	190.657
LOAN FUNDS
1] Secured Loans		2.979	28.735	209.184
2] Unsecured Loans		59.431	79.983	116.535
TOTAL BORROWING		62.410	108.718	325.719
DEFERRED TAX LIABILITIES		14.230	16.809	15.921
TOTAL		405.811	349.014	532.297
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		138.722	142.328	136.732
Capital work-in-progress		7.975	3.168	1.153
INVESTMENT		103.574	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	65.267	61.751	74.634
	Sundry Debtors	290.571	422.504	456.138
	Cash & Bank Balances	51.827	34.084	46.445
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	168.652	90.804	126.776
Total Current Assets		576.317	609.143	703.993
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	293.329	342.137	268.504
	Other Current Liabilities	8.094	4.322	4.842
	Provisions	119.354	59.166	36.235
Total Current Liabilities		420.777	405.625	309.581
Net Current Assets		155.540	203.518	394.412
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		405.811	349.014	532.297

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales	2303.572	2320.806	1969.786
		Other Income	9.229	2.989	1.022
		Credit Balance Written-Off	0.000	0.000	0.126
		Profit on sale of assets	0.000	0.000	0.070
		TOTAL (A)	2312.801	2323.795	1971.004
Less	EXPENSES
		Decrease in Stock	0.000	24.675	0.000
		Finished Goods purchased	0.000	2.234	11.773
		Raw Materials Consumed	1271.692	1281.605	1162.186
		Stores and spares consumed	20.870	22.541	21.626
		Packing Materials Consumed	43.796	50.268	40.825
		Manufacturing and Factory Expenses	190.188	180.039	165.923
		Office and Administrative Expenses	105.969	97.010	89.428
		Increase/(Decrease) in Finished Goods	(2.245)	0.000	(5.491)
		Selling Expenses	458.492	556.095	395.813
		Excise Duty	11.890	9.551	10.544
		Short Term Capital Loans	0.093	0.000	0.000
		Debit Balance Written – off	0.000	0.000	0.004
		Bad Debts Written – off	0.000	0.000	0.002
		Loss on sale of Assets	0.000	0.000	0.127
		TOTAL (B)	2100.745	2224.018	1892.760
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		212.056	99.777	78.244
Less	FINANCIAL EXPENSES (D)		9.624	26.913	32.013
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		202.432	72.864	46.231
Less/ Add	DEPRECIATION/ AMORTISATION (F)		19.602	18.657	19.421
	PROFIT BEFORE TAX (E-F) (G)		182.830	54.207	26.810
Less	TAX (I)		58.338	21.203	11.397
	PROFIT AFTER TAX (G-I) (J)		124.492	33.004	15.413
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		132.917	104.179	88.766
Less	APPROPRIATIONS
		Transfer to General Reserve	6.231	1.650	0.000
		Dividend	15.650	2.236	0.000
		Tax on Dividend	2.599	0.380	0.000
	BALANCE CARRIED TO THE B/S		232.929	132.917	104.917
	EARNINGS IN FOREIGN CURRENCY
		Direct Export Earnings	50.863	76.823	53.081
		Indirect Export Earnings	0.048	6.775	0.423
	TOTAL EARNINGS		50.911	83.598	53.504
	IMPORTS VALUE		103.486	163.270	53.990
	Earnings Per Share (Rs.)		226.35	60.01	28.02

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	5.38	1.42	0.78
Net Profit Margin (PBT/Sales)	(%)	7.94	2.34	1.36
Return on Total Assets (PBT/Total Assets}	(%)	32.68	7.21	3.19
Return on Investment (ROI) (PBT/Networth)		0.56	0.24	0.14
Debt Equity Ratio (Total Liability/Networth)		1.51	2.38	3.33
Current Ratio (Current Asset/Current Liability)		1.37	1.50	2.27

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILES

(Rs. In Millions)

Particulars	31.03.2010	31.03.2009	31.03.2008
i) Sundry Creditors for Goods	66.523	110.198	128.167
ii) Sundry Creditors for Expenses and Others	226.806	231.939	140.337
a) Amount due in small scale industries exceeding Rs. 0.100 million which is outstanding for more than 30 days Rs. 12.720 millions (Rs. 16.307 millions)
b) Total Outstanding dues of small scale industries undertakings Rs. 20.121 millions (Rs. 26.946 millions)
c) Others Rs. 272.608 millions (Rs.316.191 millions)
Total	293.329	342.137	268.504

RESERVES :

It is proposed to transfer to General Reserve Rs. 6.231 millions.

OPERATIONS:

During the year, the company had achieved Gross Sales Turnover of Rs. 2303.500 millions as against Rs.2320.800 millions in the previous year. Thus there was a decrease in Gross Sales Turnover by 0.75% over the previous year. The overall performance has improved significantly resulting into profits before tax at Rs. 182.800 millions as against Rs. 54.200 millions in the previous year.

FORM 8

Corporate identity number of the company	U25100MH1981PLC023895
Name of the company	PODDAR TYRES LIMITED
Address of the registered office or of the principal place of business in India of the company	5D, Court Chambers, 35, New Marine Lines, Mumbai – 400 020, Maharashtra, India
This form is for	Modification of charge
Type of charge	· Immovable property · Book debts · Movable property (not being pledge)
Particular of charge holder	Canara Bank Bharat Nagar Chowk, Ludhiana – 141 001, Punjab, India
Nature of instrument creating charge	Supplemental common hypothecation agreement dated 29.01.2009
Date of instrument Creating the charge	29.01.2009
Amount secured by the charge	Rs.385.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	· Rate on interest Interest on WC limit is BPLR i.e. 12.50% p.a. at present (Floating) · Terms of repayment N.A. · Margin 1. In case of OCC/ODBD limit on stock margin is 25% and on book debts margin is 40% 2. In case ILC/FLC (DA/DP) margin is 10% and on BG margin is 10%. · Extent and operation of the charge 1. First charge on raw materials, WIP, F/G in process, finished and manufactured goods and other items of stock in trade and spares, book debts, components, machinery and all other movable goods, properties etc. in favour of bank. 2. First charge on entire fixed assets of the company. (Collateral) · Others Nil
Charge identification number of the charge to be modified	90215715
Particulars of the property charged	All stocks of goods, raw material, WIP, finished and manufactured goods and others items of stock in trade, stores, book debts, spares, components, machinery, vehicles, furniture and fixtures and all other movable goods and properties of every description of the company wherever situated whether at company’s factories, places of business, godowns or in transit or in the custody of processors, warehouse agents or others or wherever else the same may be situated lying or being including any such raw material etc.
Date of instrument modifying the charge	25.08.2007
Particulars of the present modification	The bank has sanctioned increased credit limits by way of fund based and non fund based from Rs. 355.000 millions to Rs. 385.000 millions together with interest, cost and expenses payable by the company to canara bank in terms of common hypothecation agreement dated. 15.03.2001 being the original charge is now also secured by the supplemental agreement dated. 29/01/2009. The ROI on OCC/ODBD credit limits of Rs. 385.000 millions @ BPLR, i.e. 12.50% p.a. At present (floating).

FIXED ASSETS

· Building

· Plant and Machinery

· Furniture and Fixture

· Equipments

· Vehicles

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.44.57
UK Pound	1	Rs.73.58
Euro	1	Rs.66.23

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--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		50

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

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.