MIRA INFORM REPORT
|
Report Date : |
10TH June, 2006 |
IDENTIFICATION DETAILS
|
Name : |
GOODYEAR
SOUTH ASIA TYRES PRIVATE LIMITED |
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Registered Office : |
Plot
No. H-18, MIDC Industrial Area,
Waluj, Aurangabad – 431 136, Maharashtra, INDIA |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
15.12.
1993 |
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Com. Reg. No.: |
11-75617 |
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CIN No.: [Company Identification No.] |
U99999MH1993PTC075617 |
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TAN No.: (Tax Deduction &
Collection Account No.) |
NSKG01262C |
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PAN No.: (Permanent Account No.) |
AABCG5544P |
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Legal Form : |
Private
Limited Liability Company |
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Line of Business : |
Manufacturer
and marketing of automotive tyres, flaps and tubes |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable
factors carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
Maximum Credit Limit : |
USD 13000000 |
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Status : |
Moderate |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is now a subsidiary
of Goodyear Tire & Rubbe Company, Akran, Ohio USA. Financial position is moderate
having substantial accumulated losses. However, it is improving slowly. Trade
relations are fair. Payments are usually correct and as commitments. The company can be
considered normal for business dealings at usual trade terms and conditions
with slight caution. |
LOCATIONS
|
Registered Office /
Factory : |
Plot No. H-18, MIDC Industrial Area, Waluj,
Aurangabad – 431 136, Maharashtra, INDIA. |
|
Tel No. : |
91-240-2554639/2554904/5/6/7/8 |
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Fax. No.: |
91-240-2554035 |
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E-Mail.: |
DIRECTORS
|
Name : |
Mr.
Antonio M. Capellini (Foreign) |
|
Designation : |
Director & Manager |
|
Date of Birth/Age : |
24.02.1956 |
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Date of Appointment : |
30.11.2002 |
|
Address : |
Hyatt
Agency, Hotel Room No. 472, Bhikaji Cama Place, New Delhi – 110 016 |
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|
|
|
Name : |
Mr. Charlie Don Jarreau
(Foreign) |
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Designation : |
Director
|
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Date of Birth/Age : |
17.01.1949 |
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Date of Appointment : |
01.06.2000 |
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|
|
|
Name : |
Mr. David Hugh Pace, USA
(Foreign) |
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Designation : |
Director
|
|
Address: |
31-144,
East Market, Stree, Akron Ohio, USA – 44316 |
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Date of Birth/Age : |
04.01.1952 |
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Date of Appointment : |
24.12.19988 |
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Name : |
Mr. Harold Douglas Smith (Foreign) |
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Designation : |
Director
|
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Date of Birth/Age : |
08.07.1947 |
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Date of Appointment : |
27.05.2003 |
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Address : |
1144,
East Market Street, Akron, OHIO, USA – 44316 |
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|
|
|
Name : |
Mr. E. J. Rodia, USA
(Foreign) |
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Designation : |
Director
|
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Date of Birth/Age : |
07.05.1943 |
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Date of Appointment : |
22.04.1994 |
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Ceasing Date : |
27.05.2003 |
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|
|
|
Name : |
Mr. Luis C. Ceneviz
(Foreign) |
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Designation : |
Director
|
|
Date of Birth/Age : |
08.04.1957 |
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Date of Appointment : |
30.05.2000 |
|
Ceasing Date : |
27.03.2003 |
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|
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|
Name : |
Mr. Khalid Khan |
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Designation : |
Secretary |
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Date of Birth/Age : |
15.07.1968 |
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Date of Appointment : |
05.08.1999 |
|
Address : |
2136,
Mir Bukhari Street, Turkman Gate, Delhi – 110006 |
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|
|
|
Name : |
Mr. Alberto Aguirne Rivera
(Foreign) |
|
Designation : |
Director
|
|
Address: |
1st
Floor, 4/24 Shati – Ni – Ketan, New Delhi – 110021 |
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Date of Birth/Age : |
23.10.1950
|
|
Date of Appointment : |
14.10.2003 |
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|
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Name : |
Mr.
Antonio M Capelini |
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Designation : |
Director
|
|
Address: |
Hyatt
Regency Hotal, Room No. 472, Bhikaji Cama Place, New Delhi – 110016 |
|
Date of Birth/Age : |
24.02.1956 |
|
Date of Appointment : |
01.01.2003 |
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|
|
|
Name : |
Mr.
Pierre Eric Cohade |
|
Designation : |
Director
|
|
Address: |
1144,
East Market Street, Akron, USA – 44316
|
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Date of Birth/Age : |
23.09.1961 |
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Date of Appointment : |
10.12.2004 |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
|
The Goodyear Tyre and
Rubber Company (USA) |
512387245 |
|
Goodyear India Limited |
11340000 |
|
Mr. Shant Kumar Jain &
The Goodyear Tire & Rubber Company |
1 |
|
Mr. Anil Gupta & The
Goodyear Tire & Rubber Company |
1 |
|
The Goodyear Tire &
Rubber Company & Mr. Khalid A. Khan |
1 |
|
The Goodyear Tire &
Rubber Company & Mr. Ravinder Kumar |
1 |
|
The Goodyear Tire &
Rubber Company & Mr. Rajeev Anand |
1 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing
and marketing of automotive tyres, flaps and tubes |
|
|
|
|
Products : |
Item Code No. Product
Description 4011 Automotive
Tyres 4012 Flaps 4013 Tubes |
PRODUCTION STATUS
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
Tyres |
Nos |
2,500,000 |
1392730 |
|
Tubes |
Nos |
|
499102 |
|
Flaps |
Nos |
|
11081 |
GENERAL INFORMATION
|
No. of Employees : |
350
persons -- 300 persons in factory and 50 persons in office |
|
|
|
|
Bankers : |
˜
State Bank of India Aurangabad, Maharashtra ˜
Punjab National Bank PNB House, P. M. Road, Mumbai –
400 001, Maharashtra |
|
|
|
|
Facility |
Unsecured Loan Term Loan from the Holding
Company – Rs. 770.210 Millions |
|
|
|
|
Banking Relations : |
Satisfactory
|
|
|
|
|
Auditors : |
M/s.
Price Waterhouse Chartered
Accountant |
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|
|
|
Associates : |
˜
Ceat Limited, Mumbai,
Maharashtra ˜
Goodyear India
Limited, Faridabad, Haryana ˜
RPG Industries Limited
˜
Goodyear S.A.,
Luxembourg ˜
Goodyear Great Britain
Limited ˜
Goodyear Phillippines
Inc ˜
PT Goodyear Indonesia
Tbk ˜
Gummiwerke Fulda GmbH,
Germany ˜
Goodyear (Thailand)
Public Company Limited ˜
Goodyear Malaysia
Berhad ˜
Goodyear Orient
Company PTE Limited, Singapore ˜
Goodyear Lastikleri
TAS, Turkey ˜
Goodyear Dalian Tire
Rubber Company Limited ˜
Deutsche Goodyear
GmbH, Germany ˜
Goodyear Taiwan
Limited ˜
Goodyear Do Brasil
Products De Borrocha Ltda ˜
Goodyear South Africa
Private Limited ˜
Goodyear DE Colombla
S.A. ˜
Nippon Giant Tire
Company Limited ˜
South Pacific Tyres,
Australia |
|
|
|
|
Parent Company : |
The
Goodyear Tire & Rubber Company, Akron, Ohio, USA |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
530,000,000 |
Equity Shares |
Rs.10/- each |
Rs. 5300.000 millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
523,727,250 |
Equity Shares |
Rs.10/- each |
Rs. 5237.273 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 |
5237.273 |
5237.273 |
5237.273 |
|
2]
Reserves & Surplus |
0.000 |
0.000 |
0.000 |
|
3)
(Accumulated loss) |
(2201.839) |
(2268.695) |
(2269.617) |
NETWORTH
|
3035.434 |
2968.578 |
2967.656 |
|
|
|
|
|
|
LOAN
FUNDS |
|
|
|
|
1]
Secured Loans |
0.000 |
0.000 |
0.742 |
|
2]
Unsecured Loans |
770.210 |
867.744 |
824.582 |
|
TOTAL BORRWOING |
770.210 |
867.744 |
825.324 |
|
|
|
|
|
GRAND TOTAL
|
3805.644 |
3836.322 |
3792.980 |
|
|
|
|
|
|
APPLICATION
OF FUNDS |
|
|
|
|
|
|
|
|
|
FIXED
ASSETS [Net Block] |
2910.097 |
3121.036 |
3243.944 |
|
Capital
work-in-progress |
23.067 |
40.336 |
48.598 |
|
|
|
|
|
|
INVESTMENTS |
0.001 |
0.003 |
0.003 |
|
|
|
|
|
|
CURRENT
ASSETS, LOANS & ADVANCES |
|
|
|
|
Inventories |
280.618 |
242.800 |
250.114 |
|
Sundry
Debtors |
414.125 |
561.723 |
456.246 |
|
Cash
& Bank Balances |
379.296 |
111.158 |
76.119 |
|
Other Current Assets |
118.944 |
0.000 |
0.000 |
|
Loans
& Advances |
129.482 |
248.437 |
256.938 |
|
Total Current Assets |
1322.465 |
1164.118 |
1039.417 |
|
Less
: |
|
|
|
|
Current
Liabilities |
320.650 |
354.801 |
|
Provisions
|
129.336 |
134.370 |
539.582 |
Total Current Liabilities
|
449.986 |
489.171 |
539.582 |
|
Net Current Assets |
872.479 |
674.947 |
499.835 |
|
|
|
|
|
|
MISCELLANEOUS
EXPENSES |
0.000 |
0.000 |
0.600 |
|
|
|
|
|
GRAND TOTAL
|
3805.644 |
3836.322 |
3792.980 |
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
Sales Turnover [including other income]
|
2273.568 |
1926.511 |
2248.958 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
66.856 |
0.922 |
6.693 |
Provision for Taxation
|
0.000 |
0.000 |
0.000 |
Profit/(Loss) After Tax
|
66.856 |
0.922 |
6.693 |
|
|
|
|
|
Export Value
|
0.464 |
1.521 |
474.800 |
|
|
|
|
|
Import Value
|
351.472 |
303.709 |
248.995 |
|
|
|
|
|
Total Expenditure
|
1891.081 |
1659.190 |
1952.544 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
31.03.2003 |
PAT / Total Income
|
(%)
|
2.94 |
0.04 |
0.297
|
|
|
|
|
|
|
Net Profit Margin
(PBT/Sales) |
(%) |
2.94 |
0.04 |
0.297
|
|
|
|
|
|
|
Return on Total Assets
(PBT/Total Assets} |
(%) |
1.57 |
0.021 |
0.154
|
|
|
|
|
|
|
Return on Investment (ROI)
(PBT/Networth) |
|
0.02 |
0.000 |
0.002
|
|
|
|
|
|
|
Debt Equity Ratio
(Total Liability/Networth) |
|
0.40 |
0.457 |
0.446
|
|
|
|
|
|
|
Current Ratio
(Current Asset/Current
Liability) |
|
2.93 |
2.379 |
2.079
|
LOCAL AGENCY FURTHER INFORMATION
Recently the name of the
company was changed to the present.
The company has Joint
Venture with :-
·
RPG Industries Limited
505,
India House, 27, Barakhamba Road, New Delhi 110 001
·
Ceat Limited
463,
Dr. A B Road, Mumbai 400 025
Together
to hold 50% equity capital
·
The Goodyear Tyre &
Rubber Company
1144,
East Market, Street, Akron Ohio 44316-0001, USA
·
Goodyear India Limited
Godrej
Bhavan, 3rd Floor, Mathura Road, New Delhi 110 065
Together
to hold 50% Equity capital
The company is in trade terms with:-
v
C. P. Engineering Works
v
Winsome Plastic industries
v
Sumeru Packaging
v
Chemico India
v
Winsome Plastic
Industries
v
Kedar Enterprises
v
B. R. Precisions
v
Ajay Industries
v
Carton & Carton
Fixed Assets
v
Leasehold Land
v
Buildings
v
Plant & Machinery
v
Furniture & Fixtures
v
Vehicles
OPERATIONS:
During
the year under review, turnover and other income increased from Rs. 2326.900
millions to Rs. 2730.500 millions in the previous year the net profit stood at
Rs. 66.900 Millions. High quality products of the Company continued to enjoy
good reputation in Original equipment as well as Replacement markets. Many new
Original Equipment Manufacturers were added to the list of existing customers.
Encouraged by the market response of Wire Belted Radial tyres (both Tube type
and Tubeless) as well as Truck tyres, steps for enhancing production in both
these segments are in progress. The continuously rising price of raw material,
particularly that of natural rubber, affected the results of the Company. All
round efforts were continued towards achieving cost reduction in every possible
area of operations.
During
the year under review, the company continued its thrust on environmental
matters. Various environmental activities are being carried out to eliminate /
reduce wastes and emissions, recycle resources, conserve energy as well as
create awareness and provide training to the associates on environmental
performance/ aspects. In order to achieve continuous improvement in
productivity, cost and customer satisfaction, the Company implemented Six Sigma
concept which is an Internationally proven system for achieving and sustaining
business success, based on customer focus, process understanding and the wise
use of facts and data.
The
Company is also progressing towards achieving TS16949 Certification. The
Company’s plant at Aurangabad continued to be a Zero discharge unit. The
Company has already been awarded ISO 14001:1996 and QS 9000 Certification by
NSF-ISR (International Strategic Registration), Michigan.
FINANCE AND ACCOUNTS
The
parent Company, The Goodyear Tire and Rubber Company, Akron, Ohio, USA (‘GTR’)
provided US $ 9 million in, by way of External Commercial Borrowings (‘ECB’) to
retire high cost working capital loans availed from the banks. The effective
utilization of the working capital, coupled with the above inflow of funds from
the parent company, has helped the company in reducing the interest cost. The
company also made a prepayment of the cash loan of US 5.6 Million availed from
GTR The full interest cost reduction, due above debt repayment, would be reflected
from the current financial year onwards.
As
a result of concerted efforts the company had been able to reduce the quantum
of past overdubs. The sundry debtors which stood at Rs. 561.700 Millions in the
pervious year have been reduced to Rs. 414.100 millions
AS PER WEBSITE
Goodyear India launches tubeless radial
tyres
K.R. Srivats
AURANGABAD, June 19
GOODYEAR India has launched tubeless radial
tyres for the passenger car category, making it the first tyre manufacturer in the
country to offer a complete tubeless tyre range for all types of passenger
cars.
``Their tubeless radial tyres will now be
available under all the existing brands such as GPS-2 and Eagle NCT 3 for the
small, mid-size as well as luxury cars produced and perfected for India,'' Mr.
E. Krishnaiah, Sales & Marketing Director, Goodyear India, told newspersons
here today.
The entire range of tubeless passenger radial
tyres will be manufactured at the Aurangabad facility of South Asia Tyres Ltd,
a subsidiary of Goodyear Tire & Rubber Co, of the US.
Outlining the benefits of using tubeless
tyres, senior company officials said, ``Tubeless tyres will not result in
sudden blasts in case of a puncture and there would only be slow air loss.''
They explained that in a tubeless tyre, a
rubber liner or a strip would replace the conventional tube and this rubber
strip would hold the compressed air which takes the load during the operation
of the vehicle.
They said a tubeless tyre weighed less and
would also offer better comfort and control at high speeds for the driver.
On the pricing aspect, Mr. Krishnaiah said the
tubeless tyres would ``initially be available at more or less the same price of
a tube type tyre''. He said that the future pricing strategy would be difficult
to predict as that would depend on how the tubeless tyre concept was accepted
in the country.
He said Goodyear was keen to spread the
concept of tubeless tyres among the Indian consumers, tyre dealers and those
involved in repair of tyres. ``They plan to educate the consumers, dealers and
others through their advertising campaigns and personal interactions,'' Mr.
Krishnaiah said.
On whether he anticipated any campaigns
against the concept of tubeless tyre from his competitors, he said that ``anything
is possible''. He also said that Goodyear had no immediate plans to introduce
``run-flat'' tyres in the country.
Company officials said the entire range of
Goodyear tubeless passenger car radials would be available in all its 140 `Tyre
Centres' as well as in about 150 multi-brand outlets across the country in a
few days' time. Both television and print media campaigns were also being
launched to announce the introduction of Goodyear tubeless tyres, they said.
Mr Krishnaiah said the launch of tubeless
radial tyres would improve the export potential of Goodyear India and was
expected to enhance the confidence of the company's sales force.
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.45.88 |
|
UK
Pound |
1 |
Rs.84.61 |
|
Euro |
1 |
Rs.58.01 |
SCORE
& RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP
CAPITAL |
1~10 |
5 |
|
OPERATING
SCALE |
1~10 |
4 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
- |
|
--CREDIT
LINES |
1~10 |
6 |
|
--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 |
|
39 |
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%)
SCORE & 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 |