MIRA INFORM REPORT

 

 

Report Date :

25.05.2011

 

IDENTIFICATION DETAILS

 

Name :

MALHOTRA RUBBERS LIMITED

 

 

Registered Office :

70/50A, 1st Floor, Rama Road Industrial Area, Najafgarh, New Delhi – 110015, Delhi

 

 

Country :

India

 

 

Financials (as on) :

31.03.2009

 

 

Date of Incorporation :

15.07.1978

 

 

Com. Reg. No.:

55-009127

 

 

Capital Investment / Paid-up Capital :

Rs.19.658 Millions

 

 

CIN No.:

[Company Identification No.]

U74899DL1978PLC009127

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

DELM00365B

DELM08866E

 

 

PAN No.:

[Permanent Account No.]

AAACM0923H

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturer and Exporter of Tyres and Allied Materials.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba [45]

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 400000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having satisfactory track. Trade relations are fair. Business is active. Payments are reported to be usually 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.

 

 

ECGC Country Risk Classification List – June 30, 2010

 

Country Name

Previous Rating

(01.04.2010)

Current Rating

(30.06.2010)

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 :

70/50A, 1st Floor, Rama Road Industrial Area, Najafgarh, New Delhi – 110015, Delhi, India

Tel. No.:

91-11-49994999 / 25117555

E-Mail :

monit@mrltires.com

mrltires@yahoo.com

Website :

http://www.mrltires.com

 

 

DIRECTORS

 

As on 30.09.2010

 

Name :

Mr. Gopal Krishna Malhotra

Designation :

Managing Director

Address :

B-20, Kirti nagar, New Delhi – 110015, Delhi, India

Date of Birth/Age :

01.01.1955

Date of Appointment :

15.07.1978

DIN :

00515546

 

 

Name :

Mr. Raghav Malhotra

Designation :

Wholetime Director

Address :

B-20, Kirti nagar, New Delhi – 110015, Delhi, India

Date of Birth/Age :

08.03.1989

Date of Appointment :

11.06.2007

DIN :

01617602

 

 

Name :

Mr. Monit Malhotra

Designation :

Wholetime Director

Address :

B-20, Kirti nagar, New Delhi – 110015, Delhi, India

Date of Birth/Age :

20.01.1981

Date of Appointment :

08.08.2005

DIN :

00494427

 

 

Name :

Mr. Ramesh Arora

Designation :

Director

Address :

C-1/42, Sector – 36, Noida – 201301, Uttar Pradesh, India

Date of Birth/Age :

11.10.1948

Date of Appointment :

30.06.2008

DIN :

02775114

 

 

Name :

Mr. Rachit Arora

Designation :

Director

Address :

C-1/42, Sector – 36, Noida – 201301, Uttar Pradesh, India

Date of Birth/Age :

30.07.1974

Date of Appointment :

30.06.2008

DIN :

02775158

 

 

Name :

Mr. Sikander Sachdeva

Designation :

Director

Address :

178 C, Block AC, Shalimar Bagh, New Delhi – 110088, Delhi, India

Date of Birth/Age :

03.05.1962

Date of Appointment :

30.06.2008

DIN :

00150426

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2010

 

Names of Shareholders

No. of Shares

Gopal Krishna Malhotra

946210

Raghav Malhotra

195290

Monit Malhotra

195310

Malhotra Geeta

434260

Gopal Krishna Malhotra HUF

102000

Nainani Das Tirath

2500

Nainani Motimal Tirath Das

5000

Nainani Tirath Das Srichand

2500

Cee Aar Finance and Leasing Private Limited, Delhi

115000

Ceelestial Mercantile Private Limited, Delhi

131083

Ashirwad Tie up Private Limited, West Bengal

8333

Empower Industries India Limited, Maharashtra

35000

Prabhav Industries Limited, Baroda

17500

Acil Cotton Industries Limited, Baroda

20000

Total

2209986

 

As on 30.09.2010

 

Category

Percentage

Bodies corporate

14.70

Directors or relatives of Directors

84.80

Other top fifty shareholders

0.50

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Tyres and Allied Materials.

 

 

Products :

Products Description

ITC Code No.

Rubber Tyres

4011

Precured Tread Rubber

4008

Tread Rubber

4006

Flaps

4012

TRC

3506

Cushion Gum

4006

Cord Repair Fabric

4006

 

 

PRODUCTION STATUS

 

Particulars

Unit

Installed Capacity

Actual Production

Tyres

Nos.

215021

Tyre Flap

Nos.

 

11978

TRC

Ltrs.

 

229925

Cord Repair Fabric

Roll/Mtrs/Kgs.

6000

19635

Tread Rubber

Kgs.

 

81505

Precured Tread

Kgs.

 

21653

Chusion Gum

Kgs.

 

84093

FCC Bags

Kgs.

 

39000

 

Annual Installed capacity certified by the management and not verified by the auditor being a technical matter

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :
  • Bank of Baroda, International Business Branch, Parliament Street, New Delhi – 110001, Delhi, India

 

  • Oriental Bank of Commerce, A 30, Cannaught Place, new Delhi – 110001, Delhi, India

 

 

Facilities :

Secured Loan [Rs. in million]

31.03.2009

31.03.2008

Working capital Loans

 

 

Cash Credit

0.000

7.232

Bills Discounting

9.041

6.788

Preshipment Advance

32.397

39.525

Term Loan

 

 

Rupee Term Loan [Due within next 12 months Rs.3.504 million]

14.711

16.877

Foreign Currency Term loan [Due within next 12 months Rs.10.250 million]

41.001

16.532

From Others

 

 

Term Loan [Due within next 12 months Rs.2.004 million]

2.849

5.150

Total

99.999

92.104

 

Unsecured Loan [Rs. in million]

31.03.2009

31.03.2008

From Directors

12.555

4.104

Term Loan From Schedule Bank

12.600

13.375

Securities and Advances [Interest free]

20.100

11.900

Total

45.255

29.379

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Surendra Subhash and Company

Chartered Accountant    

Address :

2nd Floor, Bansi House, 1/24, Asaf Ali Road, new Delhi – 110002, Delhi, India

 

 

CAPITAL STRUCTURE

 

As on 30.09.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

2,500,000

Equity Shares

Rs.10/-each

Rs.25.000 millions

 

 

 

 

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

2,209,986

Equity Shares

Rs.10/-each

Rs.22.100 millions

 

 

 

 

 

 

 

 

 

 

As on 31.03.2009

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

2,500,000

Equity Shares

Rs.10/-each

Rs.25.000 millions

 

 

 

 

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1,965,820

Equity Shares

Rs.10/-each

Rs.19.658 millions

 

 

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

Particulars

 

31.03.2009

31.03.2008

31.03.2007

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

19.658

19.658

19.658

2] Share Application Money

14.450

1.450

0.000

3] Reserves & Surplus

67.193

60.629

58.265

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

101.301

81.737

77.923

LOAN FUNDS

 

 

 

1] Secured Loans

99.999

92.104

42.853

2] Unsecured Loans

45.255

29.379

32.925

TOTAL BORROWING

145.254

121.483

75.778

DEFERRED TAX LIABILITIES

5.446

3.284

3.595

 

 

 

 

TOTAL

252.001

206.504

157.296

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

165.788

96.294

71.687

Capital work-in-progress

0.000

9.954

11.873

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
81.656

93.784

84.211

 

Sundry Debtors
60.017

43.190

38.555

 

Cash & Bank Balances
14.836

17.883

9.484

 

Other Current Assets
2.871

4.425

10.425

 

Loans & Advances
18.248

43.588

14.644

Total Current Assets
177.628

202.870

157.319

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
65.699

79.657

67.430

 

Other Current Liabilities
24.274

16.050

10.555

 

Provisions
1.442

6.907

5.598

Total Current Liabilities
91.415

102.614

83.583

Net Current Assets
86.213

100.256

73.736

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

252.001

206.504

157.296

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2009

31.03.2008

31.03.2007

 

SALES

 

 

 

 

 

Income

592.899

459.946

403.893

 

 

Other Income

10.858

14.499

9.096

 

 

TOTAL                                     (A)

603.757

474.445

412.989

 

 

 

 

 

Less

EXPENSES

 

 

 

Excise Duty

 

 

 

 

 

Cost of Goods Sold

 

 

 

 

 

Administrative Expenses

 

 

 

 

 

Selling and distribution Expenses

 

 

 

 

 

TOTAL                                     (B)

567.382

454.983

396.395

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

36.375

19.462

16.594

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

15.843

7.131

7.336

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

20.532

12.331

9.258

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

10.256

8.866

6.770

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

10.276

3.465

2.488

 

 

 

 

 

Less

TAX                                                                  (I)

3.608

0.997

1.328

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

6.668

2.468

1.160

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

33.496

31.028

29.868

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

40.164

33.496

31.028

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

FOB Value of Export

390.698

263.632

144.306

 

TOTAL EARNINGS

390.698

263.632

144.306

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

159.415

121.299

69.376

 

TOTAL IMPORTS

159.415

121.299

69.376

 

 

 

 

 

 

Earnings Per Share (Rs.)

3.39

1.26

-

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
1.10

0.52

0.28

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
1.73

0.75

0.62

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
2.99

1.16

1.09

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.10

0.04

0.03

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
2.34

2.74

2.04

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.94

1.98

1.88

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Note : Registered office address of the company has been shifted from 2nd Floor, 878, Shyam Market, Property NO.950/5. S.P. Mukherjee Marg, Behind Novelty Cinema, Delhi – 110006, India to the present address w.e.f 17.03.2010

 

PERFORMANCE & OPERATIONAL REVIEW

 

The Company achieved gross turnover of Rs. 603.757 million, against that of Rs. 474.445 million in the previous year includes export benefits and etc. recording a growth of 27.26 %. The company made an export turnover of Rs. 415.217 million in this year as compared to Rs. 290.548 million in the previous year showing a substantial increase of 42.91%. growth In expert markets, company has made a concerted effort to move as close as possible to the end customer. this is helping companv to stay in tune with emerging trends in most export markets and to cement lies with its customers

 

Operating profit, before interest and depreciation, amounted to Rs. 36.375 million, as against Rs. 19.462 million during the previous year. Net profit, after providing for interest; depreciation and tax amounted to Rs 6.669 million as against Rs. 2.468 million during the previous year.

 

The Company has achieved all lime high profit and robust growth in its operations supported by a motivated Director Mr. Monil Malhotra his aggressive marketing initiatives, better working capita) management and overall cost reduction measures adopted by the Company despite worldwide economic slowdown. The cost management and production efficiencies helped in maintaining a good profitable track record despite increase in input costs.

 

FUTURF PLANNING and OUTLOOK

 

With a weak Rupee and good demand from their customers they look forward to a good Next Year of 2009-10. Orders on hand for delivery art approx. 350.000 Million and they do see a healthy order book for lanuary-Maich, 2010. They believe they are in line with their earlier targeted growth of 15% to 20%. With a weaker Rupee and the new factory achieving optimum productivity, they expect favourable performance in the next year. The company is also envisaging a big expansion m the new factory site by adding more production facilities and machineries.

 

Bankers Charges Report as per Registry

 

Corporate identity number of the company

U74899DL1978PLC009127

Name of the company

MALHOTRA RUBBERS LIMITED

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

70/50a, 1st Floor, Rama Road, Industrial Area, Najafgargh Road, New Delhi – 110015, Delhi, India

 

This form is for

Creation of Charge

Type of charge

  • Book Debts
  • Movable Property
  • Floating Charge

Particular of charge holder

Bank of Baroda, International Business Branch, Parliament Street, New Delhi – 110001, Delhi, India

Nature of instrument creating charge

Composite Hypothecation Agreement dated 08.03.2011

Date of instrument Creating the charge

08.03.2011

Amount secured by the charge

Rs.20.000 millions

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

Rate of Interest - As per Banks/RBI/FEDAI guidelines from time to time.

 

Terms of Repayment - Payable on demand.

 

Margin – 100%

 

Extent and Operation of the charge – 100%

 

Others - To secure all amounts payable under Adhoc Letter of Credit (DA-90 days) limit of Rs. 200.00 lacs granted to the Company for 3 months together with all interests, costs, charges, expenses, commission etc.

Short particulars of the property or asset(s) charged (including complete address and location of the property)

Hypothecation of the following:

a)Stock of raw-materials, work-in-process, semi  finished goods  and finished goods such as Carbon,  Rubbers, Tyres and other  releted items, packing materials and stores etc. now lying or hereafter stored at Company's premises or at any other place(s) including those in transit. b)All book-debts, outstandings,  monies receivables, claims, bills, contracts, engagements and securities - both present & future. c)All  tangible moveable machinery and plant and vehicles together with spares, tools and accessories and other moveables, furniture, fixtures and  fittings  and office equipment installed/stored/kept or to be installed/stored/kept at Companys premises at D-4 Sector-XI, Noida (UP) and A-1/2-10 & 11, Surajpur Indl. Area, Greater Noida or at any other place(s) including those in transit.

 

 

FIXED ASSETS :

  • Land
  • Building
  • Plant and Machinery
  • Furniture and Fixtures
  • Computer
  • Office Equipments
  • Electrical Installations
  • 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

 

5Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.25

UK Pound

1

Rs.72.82

Euro

1

Rs.63.58

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

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

 

45

 

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.