MIRA INFORM REPORT
|
Report
Date : |
23.08.2007 |
IDENTIFICATION DETAILS
|
Name : |
CEAT LIMITED |
|
|
|
|
Registered
Office : |
Ceat Mahal, 463, |
|
|
|
|
Country: |
|
|
|
|
|
Financials
(as on): |
31.03.2007 |
|
|
|
|
Date of
Incorporation : |
10.03.1958 |
|
|
|
|
Com.
Reg. No.: |
11-11041 |
|
|
|
|
CIN
No.: [Company Identification No.] |
L25100MH1958PLC011041 |
|
|
|
|
TAN
No.: (Tax Deduction & Collection Account No.) |
MUMC10660G MUMC11397B |
|
|
|
|
PAN
No.: (Permanent Account No.) |
AAACC1645G |
|
|
|
|
Legal Form
: |
Public
Limited Liability Company. The
company’s shares are listed on the Stock Exchanges. |
|
|
|
|
Line
of Business : |
Manufacturing and Marketing of Automotive Tyres,
Automotive Tubes and Automotive Flaps. |
RATING & COMMENTS
|
MIRA’s
Rating : |
Aa |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum
Credit Limit : |
USD 15145516 |
|
|
|
|
Status
: |
Good |
|
|
|
|
Payment
Behaviour : |
Regular |
|
|
|
|
Litigation
: |
Clear |
|
|
|
|
Comments
: |
Subject is a well established company having satisfactory
track. Directors are reported as experienced, respectable and having
substantial means of their own. Their trade relations are fair. Payments are
reported as slow by average 30 days. The
company can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
|
Registered
/ Corporate Office : |
Ceat Mahal, 463, |
|
Tel.
No.: |
91-22-24930621/24616054/25640461/25660461/63 |
|
Fax
No.: |
91-22-24606039/25640301/25663964 |
|
E-Mail
: |
|
|
Website
: |
|
|
|
|
|
Head
Office : |
6, Lotus House, Sir Vithaldas Thakersey Marg, New Marine
Lines, Mumbai – 400 020, |
|
Tel.
No.: |
91-22-28570014/0378/0376 |
|
|
|
|
Factory
1 : |
·
Village Road, Bhandup, Mumbai – 400 078, |
|
|
|
|
Factory
2 : |
·
82, MIDC
Industrial Estate, Satpur, |
|
|
|
|
Regional
Offices: |
1207, 12th Fl, Modicrop Tower 98, Telephone 91-11-51618491 Fax 91-11-26444098 Sco 201, 2, 3, 1st Floor, Telephone 91-172-622057/8 Fax 91-172-622728 2nd Floor, Satnam Complex, Near BMC
Chowk, Jalandhar – 144 001 Telephone 91-181-2244094 Fax 91-181-2244094 Scf No 70, 2nd Floor, Sector 15, Market, Telephone 91-129-5008021/2 Fax 91-129-2429823 C/O Umeed Auto, Telephone 91-1262-49895 91-121-513635 Fax 91-121-513871 201 A, R H Tower, The Mall, (Next to HTL
Clarks), Telephone 91-542-2503919 Fax 91-542-341919 39, Factory Area, Fazalganj, Telephone 91-512-219741 Fax 91-512-216522 307, 3rd Floor, Telephone 91-141-2372808 Fax 91-141-2372022 DRTC House, 1st Floor Cinema Bldg, Behind
Olympic Cinema, Telephone 91-291-616237 Fax 91-291-640721 Plot No 85, Telephone 91-562-2524840 Fax 91-562-2524839 HCL Compound, Niranjan Pur, Telephone 91-135-2001237 792, Sherpur Bypass, Telephone 91-161-2675577 Fax Telephone 91-161-2674755 1st Floor, Dhesagar Complex, Telephone 91-164-2216706 3rd Floor, Duncan House 31, Telephone 91-33- 22130343 Fax 91-33- 22130346 1st Floor 189, Telephone 91-341-213017 Fax 91-341-213017 7, I A S Colony, Kidwaipuri, Telephone 91-612-2524550 Fax 2520511 Telephone 91-651-2207252 Fax 91-651-206067 R No 407, 4th Telephone 91-674-2595494 Fax 2595092 Udyog Bikas Bhavan Bhangagarh, G S Road, Guwahati
– 781 005 Telephone 91-361-2529060 Fax 91-361-529315 5th Floor,
Akarshan Complx, Telephone 91-712-
2547443,55 Fax 91-712- 2547444 13/A, 2nd Floor, Telephone 91-20-6835402/3 Fax 91-20-6835404 15, South Civil Telephone 91-761-325712 Fax 91-761-320531 219, 220, 2nd Floor 6, Telephone 91-731-5091909 Fax 91-731-2524261 Neeldhara, 1st Telephone 91-79-26577672/73 Fax 91-79-26577297 404, Star Chambers, Harihar Chowk, Panchnath
Plot, Telephone 91-281-220217/8 Fax 91-281-291302 S J Logistics, B-29/4 Devendra Nagar, Telephone 91-771- 2582712 C/O Rajkiran Agency Telephone 91-95231- 2462701/2 108/109, Telephone 91-22 55912641 No 2, Telephone 91-44-24356387/044-24360769 Fax 91-44-24362519 Sri Sai Baba Chambers, No 2, 1st Floor,
16, Telephone 91-422-453939 Fax 91-422-450157 Telephone 91-452-2387763/4 Telephone 91-484-353640 Fax 91-484-372720 Telephone 91-80-2222388 Fax
91-80-2235027 8, Telephone 91-831-2423482 Fax 91-831-2426552 Flat No 418, Maheshwari
Chamber, 6-3-650, Somaji Guda, Telephone 91-40-23396722 Fax 91-40-23396539 54/15-3, Telephone 91-866-450170 Fax 91-866-450073 |
DIRECTORS
|
Name : |
Mr. R. P. Goenka |
|
Designation
: |
Chairman |
|
Other
Directorship : |
Ř CESC Limited – Director Ř Saregama India Limited – Director Ř Jubilee Investments and Ind.
Limited - Director Ř Hilltop Holdings India Limited –
Director |
|
|
|
|
Name : |
Mr. H. V. Goenka |
|
Designation
: |
Vice Chairman |
|
|
|
|
Name : |
Mr. Paras K. Chowdhary |
|
Designation
: |
Managing Director (Appointed on 18/01/2001) |
|
|
|
|
Name : |
Mr. M. A. Bakre |
|
Designation
: |
Director |
|
Other
Directorship ; |
Ř Garware Wall Ropes Limited –
Director Ř FGP Limited – Director |
|
|
|
|
Name : |
Mr. A. C. Choksey |
|
Designation
: |
Director |
|
Date
of Appointment : |
28/01/2000 |
|
|
|
|
Name : |
Mr. Hari L. Mundra |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. S. Doreswamy |
|
Designation
: |
Director |
|
Date
of Appointment : |
27/07/2000 |
|
Other
Directorship : |
Ř Can Fin Homes Limited - Chairman Ř Pantaloon Retail [ Ř Kaytee Switchgear Limited –
Director Ř Sakthi Sugar Limited – Director Ř Sakthi Auto Component Limited –
Director Ř Deposit Insurance and Credit
Guarantee Corporation Limited – Director Ř Caliberpoint Business Solutions
Limited – Director |
|
|
|
|
Name : |
Mr. J. N. Guzder |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. H. Khaitan |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. B. S. Mehta |
|
Designation
: |
Director |
|
Other
Directorship : |
Ř Atul Limited – Director Ř Bharat Bijlee Limited – Director Ř Century Enka Limited – Director Ř Housing Development Finance
Corporation Limited – Director Ř IL & FS Investment Mergers
Limited [Formerly known as IL & FS Venture Corporation Limited] –
Director Ř J. B. Chemicals &
Pharmaceuticals Limited - Director Ř Pidilite Industries Limited –
Director Ř Procter and Gamble Hygiene and
Health Care Limited – Director Ř Sasken Communication Technologies
Limited – Director Ř SBI Capital Markets Limited –
Director Ř Sudarshan Chemical Industries
Limited – Director Ř The Dawn Mills Company Limited –
Director Ř Varun Shipping Company Limited –
Director Ř Vinyl Chemicals [ |
|
|
|
|
Name : |
Mr. K. R. Podar |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. Mahesh S. Gupta |
|
Designation
: |
Director (Appointed on 02/05/2002) |
KEY EXECUTIVES
|
Name : |
Mr. H. N. Singh Rajpoot |
|
Designation
: |
Company Secretary |
|
|
|
|
Audit Committee : |
|
|
Mr. M.
A. Bakre |
Chairman |
|
Mr.
Mahesh S. Gupta |
Member |
|
Mr. S.
Doreswamy |
Member |
|
Mr. Hari
L. Mundra |
Member |
|
|
|
|
Shareholders / Investors Grievance Committee : |
|
|
Mr. M.
A. Bakre |
Chairman |
|
Mr.
Paras K. Chowdhary |
Member |
|
Mr. Mahesh
S. Gupta |
Member |
MAJOR SHAREHOLDERS
|
Category |
No. of Shares held |
% of Shares |
|
Promoters
Holdings (Indian and Foreign) |
19714888 |
43.18 |
|
Mutual
Funds Banks, Financial Institutions, Insurance |
6306160 |
13.81 |
|
Companies
and others |
5106712 |
11.19 |
|
Foreign Institutional
Investors |
4031972 |
8.83 |
|
Non
Resident Indians |
151767 |
0.33 |
|
Corporate Bodies, Indian
Public and others |
10345127 |
22.66 |
|
Total |
45656626 |
100.00 |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturing and Marketing of Automotive Tyres,
Automotive Tubes and Automotive Flaps. |
||||||||||||||||
|
|
|
||||||||||||||||
|
Product
: |
|
||||||||||||||||
|
|
|
||||||||||||||||
|
Brand
Name : |
CEAT,
CEAT SECURA, CEAT ENDURA, CEAT MAESTRO, etc. |
PRODUCTION STATUS
|
PARTICULARS |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Automotive Tyres |
|
4.947 |
4.311 |
7.510 |
|
Automotive Tubes |
|
4.947 |
-- |
7.600 |
|
Automotive Flaps |
|
-- |
-- |
2.530 |
GENERAL INFORMATION
|
No. of
Employees: |
4928 |
|
|
|
|
Bankers
: |
·
Bank of Mumbai Corporate Banking Branch, 70-80, Mumbai – 400023, ·
Bank of ·
Indian Bank ·
State Bank of ·
UCO Bank ·
Vijaya Bank ·
Corporation Bank ·
State Bank of Travancore ·
The Dhanalakshmi Bank Limited ·
ICICI Bank Limited ·
The Karnataka Bank Limited ·
The United Western Indian Bank ·
Export-Import Bank of ·
Industrial Development Bank of India Limited ·
Yes Bank Limited |
|
Facilities : |
(Rs.
in millions)
In
respect of the above loans, Rs. 34,3.066 milions (Previous year Rs 44,6.967
millions ) due and repayable within a year. Notes: 1.
13.50% 40,00,000 Secured Redeemable Non-Convertible Debentures of Rs 1.78 (Rs
5.35) each issued to ICICI Bank Limited against financial assistance for
Company's Radial Project. These Debentures are secured by first mortgage on
the immovable properties of the Company situated at Bhileshwarpura, District
Mehsana, Gujarat and pari passu charge
on movable properties of the Radial Project at 2. Security
is created on movable and immovable assets of the Company (except for CEAT
Mahal property at Worli, Mumbai, Temple property at Gwalior in Madhya
Pradesh, property at Bhileshwarpura, District Mehsana, Gujarat and assets of
the Radial unit at Nasik) on pari
passu basis in favour of the following Financial Institutions and
Banks with second charge in favour of Consortium of Banks led by Bank of
India:
3. Term
Loan (Loan II) from IDBI Bank Limited of Rs 14, 2.500 millions (Rs 120.000 millions)
is secured by a first pah passu
charge on movable and immovable properties of the Company at Bhandup
and 4. ECB
of US$ 10 million from ICICI Bank Limited has been swapped into Rupee
liability of Rs 459.500 millions with the Bank. This loan is secured by a
first pan passu charge on the
movable and immovable properties of the Company at Bhandup and 5. The
Term Loan availed from Indian Bank is secured by mortgage of CEAT Mahal
property at Worli in Mumbai and first pah
passu charge on the movable assets of radial Unit at 6.
Working Capital Term Loan of Rs 36,9.430 millions (Rs 331.711 millions) from
Consortium of Banks (except Exim Barik) is secured by way of first charge on
the Tea Gardens of Harrisons Malayalam Limited. 7.
Fund/Non fund based Working Capital facilities from Consortium of Banks led
by Bank of India are secured by hypothecation of Inventories and Book debts
and by a second charge on immovable properties of the Company situated at
Bhandup and Nasik Plants and CEAT Mahal property at Worli in Mumbai. 8.
Fund/Non fund based Working Capital facilities given by YES Bank Limited are
secured by way of hypothecation of Inventories and Book Debts of the Company. 9. The
vehicle loans availed from Banks and Financial Companies are secured by way
of hypothecation of the vehicles financed by them.
In respect of the above loans,
Rs.350.672 millions (Previous Year Rs 513.348 millions ) is due and repayable
within a year. |
|
|
|
|
Banking Relations : |
Satisfactory |
|
|
|
|
Auditors
: |
·
N. M. Raiji & Company Chartered Accountants |
|
|
|
|
Associates/Subsidiaries
: |
v Associated CEAT Holdings Company
(Private) Limited v CEAT-Kelani Associated Holdings
Company (Private) Limited v Associated CEAT (Private) Limited, v CEAT-Kelani International Tyres
(Private) Limited v ACT Limited v Associated CEAT Kelani Radials
Limited v Rado Tyres Limited v Zensar Technologies Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
46100000 |
Equity Shares |
Rs.10/- each |
Rs.461.000 millions |
|
3900000 |
Preference Shares |
Rs.10/- each |
Rs. 39.000 millions |
|
10000000 |
Unclassified Shares |
Rs.10/- each |
Rs.100.000 millions |
|
GRAND TOTAL |
|
Rs. 600.000 millions |
|
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
45750004 |
Equity Shares |
Rs. 10/- each |
Rs. 457.500 millions |
|
45656626 |
Equity Shares |
Rs.10/- each |
Rs.456.566 millions |
|
Add : |
Allotment Money/Calls in Arrears |
|
Rs. 0.233 millions |
|
GRAND TOTAL |
|
Rs. 914.299 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 |
456.799 |
456.799 |
350.981 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3]
Reserves & Surplus |
3329.580 |
3033.244 |
5950.397 |
|
|
4]
(Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
3786.379 |
3490.043 |
6301.378 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
2757.593 |
2912.227 |
3388.534 |
|
|
2]
Unsecured Loans |
2164.955 |
2300.501 |
1117.832 |
|
|
TOTAL BORROWING |
4922.548 |
5212.728 |
4506.366 |
|
|
DEFERRED
TAX LIABILITIES |
232.808 |
139.885 |
419.265 |
|
|
|
|
|
|
|
|
TOTAL |
8941.735 |
8842.656 |
11227.009 |
|
|
|
|
|
|
|
|
APPLICATION
OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED
ASSETS [Net Block] |
7000.097 |
7217.056 |
5294.435 |
|
|
Capital
work-in-progress |
101.334 |
42.735 |
150.327 |
|
|
|
|
|
|
|
|
INVESTMENT |
1278.090 |
1278.090 |
1907.936 |
|
|
DEFERREX
TAX ASSETS |
0.000 |
0.000 |
289.380 |
|
|
|
|
|
|
|
|
CURRENT
ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2212.171
|
1834.544 |
1682.042 |
|
|
Sundry
Debtors |
2631.707
|
2532.277 |
2366.003 |
|
|
Cash
& Bank Balances |
405.513
|
396.127 |
312.363 |
|
|
Other
Current Assets |
0.000 |
0.000 |
0.000 |
|
|
Loans
& Advances |
560.620
|
630.458 |
5252.361 |
|
Total Current Assets |
5810.011
|
5393.406 |
9612.769 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current
Liabilities |
4896.485
|
4703.253 |
5562.147 |
|
|
Provisions |
351.312
|
385.378 |
465.691 |
|
Total Current
Liabilities |
5247.797
|
5088.631 |
6027.838 |
|
|
Net Current Assets |
562.214
|
304.775 |
3584.931 |
|
|
|
|
|
|
|
|
MISCELLANEOUS
EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
8941.735 |
8842.656 |
11227.009 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
21347.781 |
17474.263 |
15669.754 |
|
|
Other Income |
244.434 |
226.256 |
|
|
|
Total
Income |
21592.215 |
17700.519 |
15669.754 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
609.188 |
52.174 |
[28.742] |
|
|
Provision for Taxation |
216.703 |
46.998 |
[10.000] |
|
|
Profit/(Loss) After Tax |
392.485 |
5.176 |
[18.742] |
|
|
|
|
|
|
|
|
Earnings
in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
4294.626 |
3935.029 |
|
|
|
Royalty |
10.289 |
8.830 |
2595.019 |
|
|
Technology Fee |
0.000 |
8.662 |
|
|
|
Other Earnings |
1.170 |
1.207 |
|
|
Total
Earnings |
4306.085 |
3953.728 |
2595.019 |
|
|
|
|
|
|
|
|
Imports
: |
|
|
|
|
|
|
Raw Materials |
4697.412 |
3342.332 |
|
|
|
Stores & Spares |
6.998 |
4.914 |
|
|
|
Capital Goods |
31.712 |
26.869 |
3381.377 |
|
|
Trade Goods |
329.644 |
221.714 |
|
|
Total
Imports |
5065.766 |
3595.829 |
3381.377 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Personnel expenses |
1282.306 |
1185.872 |
|
|
|
Raw Material Consumed |
14425.177 |
12092.411 |
|
|
|
Purchases made for re-sale |
443.522 |
284.363 |
15747.009 |
|
|
Interest |
604.271 |
635.561 |
|
|
|
Depreciation & Amortization |
310.606 |
224.472 |
|
|
|
Other Expenditure |
3940.765 |
3455.946 |
|
|
Total
Expenditure |
21006.647 |
17878.625 |
15747.009 |
|
QUARTERLY
RESULTS
|
Particulars |
|
|
30.06.2007 |
|
Type |
|
|
1st Qtr |
|
Sales Turnover |
|
|
5364.400 |
|
Other Income |
|
|
188.400 |
|
Total Income |
|
|
5552.800 |
|
Total Expenditure |
|
|
4870.900 |
|
Operating Profit |
|
|
681.900 |
|
Interest |
|
|
140.300 |
|
Gross Profit |
|
|
541.600 |
|
Depreciation |
|
|
80.000 |
|
Tax |
|
|
178.100 |
|
Reported PAT |
|
|
303.500 |
200706 Quarter 1 --------------- Notes
Expenditure Includes (Increase)/Decrease in stock in Trade Rs (138.00) million
Consumption of Raw Material / Rs 3571.10 million bought out goods Staff Cost Rs
343.90 million Other expenditure Rs 1093.90 million Tax Includes Provision for
Current Tax Rs 170.50 million Deferred Tax Rs (20.00) million Fringe Benefit
Tax Rs 7.60 million EPS is Basic & Diluted Status of Investor Complaints
for the quarter ended June 30, 2007 Complaints Pending at the beginning of the
quarter Nil Complaints Received during the quarter Nil Complaints disposed off
during the quarter Nil Complaints unresolved at the end of the quarter Nil 1.
Considering the organization structure, nature of products and risk &
return profile based on geographical distribution, the tyre business is
considered as the only Reportable business segment in accordance with the
Accounting Standard (AS 17) Segment Reporting. 2. Extraordinary / Non-recurring
income (Net) represents refund of Income Tax along with interest, credit of
Excise duty and reversal of Export Benefits granted in earlier years and
subsequently withdrawn by the Government of India. 3. The figures have been
regrouped / rearranged wherever considered necessary to conform to current
period / year's classification and grouping. 4. The above results were reviewed
by the Audit Committee and were thereafter taken on record by the Board of
Directors at their meeting held on July 27, 2007. 5. The Statutory Auditors
have carried out 'Limited Review' of the financial results for the quarter
ended June 30, 2007 as required under clause 41 of the Listing Agreement.
KEY
RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
|
1.39 |
1.50 |
1.46 |
|
Long Term Debt-Equity Ratio |
|
0.88 |
0.90 |
0.88 |
|
Current Ratio |
|
0.78 |
0.98 |
1.23 |
|
TURNOVER RATIOS |
|
|
|
|
|
Fixed Assets |
|
2.15 |
2.35 |
3.25 |
|
Inventory |
|
11.78 |
11.07 |
10.46 |
|
Debtors |
|
9.26 |
7.97 |
7.36 |
|
Interest Cover Ratio |
|
1.87 |
1.07 |
0.89 |
|
Operating Profit Margin(%) |
|
6.79 |
5.12 |
4.87 |
|
Profit Before Interest And Tax
Margin(%) |
|
5.49 |
3.97 |
3.63 |
|
Cash Profit Margin(%) |
|
2.94 |
1.18 |
0.87 |
|
Adjusted Net Profit Margin(%) |
|
1.64 |
0.03 |
(0.37) |
|
Return On Capital Employed(%) |
|
15.07 |
9.58 |
8.33 |
|
Return On Net Worth(%) |
|
10.79 |
0.16 |
(2.09) |
STOCK PRICES
|
Face Value |
Rs. 10.00/- |
|
High |
Rs. 65.70/- |
|
Low |
Rs. 36.10/- |
LOCAL AGENCY FURTHER
INFORMATION
History:
Subject was
incorporated on 10th March 1958 at Mumbai in
The company was set up with a capital of Rs. 11.500 millions
contributed in a 60:40 ratio by CEAT (Cavi Electric Affini Torino) of
The flagship of the RPG group, manufactures steel-belted
radials for passenger cars. The various range of tyres manufactured are
marketed under “Ceat”, “Samrat” and “Secura” brand names.
With the amalgamation of Deccan Fibre Glass in 1983 and
Murphy
The Photocopier Division was sold to RPG Ricoh in May
1994. The company also transferred its
The radial tyre plant has commenced commercial production in
The company is planning to acquire the capacity in the newer
plants in
The company is the first tyre company in
The company has entered into agreement with Pirelli of Italy
for outsourcing radial tyres, which are marketed in the brand name, CEAT Spider
Radials. The company is exporting its products to nearly 50 countries and is
entering into the new markets namely
INDUSTRY
SCENARIO
A
resurgence in the Indian economy over the past few years has induced a good
rate of growth in the automobile industry which grew at 15.8% during the period
2002-2006. Consequently the overall demand for tyres also registered an average
growth of about 8% during this period. The demand-supply situation became
favourable and tyre sales across all segments were buoyant. Original Equipment
(OE) segment, in particular, registered a double digit growth. With increasing
agricultural and industrial activity, rising vehicle demand, infrastructure
development such as Golden Quadr4lateral and North South East West Corridor
projects, state road networks and connectivity to ports, the demand for high
quality tyres for high speed operations has already started growing. subject,
with its appropriately segmented product portfolio, is well poised to take advantage
of this emerging opportunity in_the domestic market
During
the last year, the industry has become more globalised. Imports of truck tyres
has increased manifold. A number of free trade agreements with neighbouring
regions are under finalisation. On the other hand exports out of
increase.
SUBJECT'S
PERFORMANCE
The
Company registered a revenue growth of 22.5 % during the year under review. All
three (3) segments of subject's business, namely exports, Original Equipment
Manufacturers (OEMs) and domestic replacement sales have shown good growth
during the year under review with existing and new OEM customers being the key
drivers. Realisation from OEMs have improved during the year. Along with
improved product mix, the Company's profitability has therefore improved in this
segment. Domestic replacement market was extremely competitive, partly due to
increasing imports from
EXPORTS
The
Company has extended its global footprint to 110 countries across the globe.
Its export basket has improved substantially in terms of price realisations and
profitability. The Company has established a stable and extensive network in
South America, North America as well as in
FUTURE
OUTLOOK
With
increasing expense on, infrastructure in
INDUSTRY
STRUCTURE & DEVELOPMENTS
As a
result of the good growth of the Indian economy since 2002, particularly at
about 9% in the last two yeans, the automobile industry has grown at a CAGR of
15.8% in the last five years. Consequently, the demand for products of its
ancillaries has also improved significantly. For the same reason, tyre industry,
which was facing a sluggish demand till three years back, experienced a
favourable demand supply situation during the year under review. Road
infrastructure investment is expected to grow at 11 % in the next three years.
Improvement in road infrastructure due to this investment is likely to lead to
shifting of cargo transport from railways to roads, which in turn should
increase sale of commercial vehicles. Higher movement of goods and increased
traffic is expected to boost the demand for automobiles further. Currently, the
share of automobile industry is 5% of GDP. This is expected to increase to
10-12% in the next decade. Also,
The tyre
industry witnessed continuous increase in raw material costs in the past
several years which resulted in lower margins. With growth in demand for tyres
not being adequate to compensate for this rise, tyre manufacturers were neither
able to pass on the cost increases to customers nor obtain better prices from
OEMs. Due to lower profitability, the industry did not invest in capacity
expansions either. However, for reasons mentioned above, the demand supply
situation has turned favourable during the year under review, and consequently
the pricing power of the industry has improved. This has enabled the industry
to affect several price increases during the year under review, resulting in
increased volumes and better margins for the industry. Considering the demand
projections, the tyre industry is expected to invest approximately Rs. 30000.000
millions on capacity expansion in the next five years and the industry is
expected to grow at a CAGR of 10.7%.
OPPORTUNITIES
• Indian
economy is expected to grow at about 8% during 2007-2008.
• Road
infrastructure investment to grow at about 11 % in the next three years and
Indian Automobile Industry to grow at
15% in the next 10 years.
•
Automobile majors continue to operate at full capacity and have ambitious
expansion plans.
• The
above are likely to result in growth of the tyre industry at around 10.7% in
the next five years.
•
Increasing acceptance of Indian tyres in export markets. 'Made in
PRODUCTWISE
PERFORMANCE
Subject
continues to have the widest product portfolio in the industry. This
includes small tyres for scooter/ motorcycles (7%), passenger cars (4%),
light commercial vehicles (13%). Tractors (7%), Heavy Commercial
Vehicles (64%) and Mining / other Vehicles (5%). subject has grown
handsomely in the commercial segment of truck tyres in the domestic
market. While OEM demand has been buoyant throughout the year,
replacement demand for subject's high mileage performance tyres has seen
a good upswing. Subject’s truck tyre portfolio has found increasing
acceptance in all key segments across the country and the perception
about this product segment has moved up several notches with good acceptance
amongst key big fleet operators in the country. Subject has considerably
displayed stronger pricing power, which with improved product mix has had a
direct impact on bottomline. Several new
products
were introduced during the year, both in the premium and the Value For Money
(VFM) segments. Subject has scaled the learning curve in the context.of sales
and marketing, while focusing in the key markets of south and west. It is now ready
to sell higher quantities and garner stronger market shares. Subject’s Light
Commercial Vehicle (LCV) portfolio has grown as well, at the high end of the
product portfolio. Sustained marketing activities in this category has also led
to improvement of perception and sales and subject is well poised to gain
higher market shares in the coming years. New products were launched in the
premium as well as in the value-for-money segment. The motorcycle tyre segment
has shown robust growth while sale of scooter tyres went down during the last
fiscal. Since production capacity of car tyres remained the same throughout the
year, growth in the passenger car segment was marginal. With increase in
capacity and development of several new products, patterns and sizes in the
coming year, subject is well placed to hike its market shares in the car tyre
segment as well.
Subject
is now exporting to more than 110 countries across the world. It has
considerably improved its distributor network in the
OUTLOOK
Driven by
sustained growth of Indian Economy/ Automobile Industry, the Indian Tyre
Industry is expected to grow at a CAGR of 10.7% in the next ten years, as
against 7.7% during the past ten years.
SUBJECT’S
STRATEGY FOR 2007-2008
Subject
would like to dominate in select segments in the domestic as well as in the
export market. With globalization of the economy, new segments are getting created.
Subject has chosen some key segments where it will focus its entire marketing activities
in the future with a view to achieve leadership status. 'Select and dominate'
will be subject's strategy in all product categories. Further improvement in
product mix and realizations will be the key operational deliverables of the
entire strategy.
Business:
Subject is
engaged in the business as manufacturers and marketers of Automotive Tyres,
Automotive Tubes and Automotive Flaps.
The company is the second largest tyre manufacturer in the
country.
ASSOCIATED CEAT- KELANI
VENTURE
Subject's joint venture in Sri Lanka, registered a modest revenue growth
of 7%, up from SL Rs. 2713 million in the previous year to SL Rs. 2910 million
for the year under review. The profit for the year at SL Rs. 54 million was lower
as compared to the profit of SL Rs. 83 million for the previous year. The
earnings could have been substantially higher but for the loss of production in
one of the two manufacturing units on account of labour issues, which have
since been settled through a long term productivity linked wage settlement.
This venture is already a market leader in the bias segment
with a market share of over 50%. It is currently implementing a new project to
manufacture 26,000 passenger car radial tyres per month. With substantial
increase in productivity and the foray into radial segment, revenue and
profitability of this venture are expected to see significant improvement in
the coming years.
AUTHORISED SHARE CAPITAL
Pursuant to Article 5 of The Articles of Association of the
Company, the Board of Directors at its meeting held on 23rd September
2005 have re-classified 108,86,680 as equity shares of Rs. 10/- each out of
total 208,86,680 unclassified shares of Rs. 10/- each as mentioned in the last
balance sheet in order to facilitate issue of equity shares of Rs. 10/- each on
rights basis in terms of Letter of Offer dated 8th December
2005.
The company
is in trade terms with the following :
v Accura Valves
v Acmechem Private Limited
v Alfred Rubber Products
v Bharat Rubber Regenerating Limited
v Deekay Clutches
v Grand Wood Works & Saw Mill
v Pukhraj Engineering & Chemicals
v Rajashree Enterprises
v Solar Chemferts Private Limited
v Suraiya Private Limited
v Shree Samarth Industries
v Vibros Rubber Products Private
Limited
v Burad Chemicals Private Limited
v Micro Belts & Tyres Private
Limited
The
company’s fixed assets of important value includes land, building, plant and
machinery, furniture and fixtures and vehicles.
As per Web Details :
About them
The oldest of the RPG Enterprises
companies, subject Tyres was established in 1958. Today, they are one of
They offer the widest range of tyres to all user segments, and manufacture
world-class radials for all Indian vehicles including:
Ř
Heavy-duty Trucks and Buses
Ř
Light Commercial Vehicles
Ř
Earthmovers
Ř
Forklifts
Ř
Tractors
Ř
Trailers
Ř
Cars
Ř
Motorcycles and Scooters
Ř
Auto-rickshaws
They also market tubes
and flaps, which are outsourced from 7 to 8 units.
Possessing an enviable list of clients
They enjoy
long-standing business tie-ups with major OEMs including TATA Motors, Ashok
Leyland, Mahindra & Mahindra, Maruti, L&T, Eicher, Swaraj Mazda, Caterpillar,
Bajaj Tempo, Piaggio, Hero Honda, HMSI (wholly owned subsidiary of Honda
Motors,
Focused on Quality
At subject, they
continue to stay committed to enhancing the quality of their products and
upgrading their technologies. It goes without saying that they adhere to the
highest standards of safety. Testimony to their endeavours is the fact that
they are the first and only Indian tyre company to be awarded the ISO/TS
16949:2002 certification, by TUV, a reputed certification body, based in
Subject Quality Policy
They are
customer-centric and consistently deliver excellent products and services at
competitive prices. It is their endeavour to continually improve all their
business processes and ensure conformance to the established quality systems.
They accomplish this through constant upgrading of their employees’ skills.
History
Ř
Subject stands for Cavi Electrici Affini
Torino (Electrical Cables and Allied Products of Turin).
Ř
Subject International was first established
in 1924 at Turino in
Ř
In 1958, subject came to
Ř
In 1982, the RPG Group took over CEAT
Tyres of India, and in 1990, renamed the company CEAT Limited.
Current Scenario
Ř
Manufactures over 6 million tyres every
year.
Ř
Enjoys 55% of the local market for light
truck and truck tyres.
Ř
Operates from plants in Mumbai and
Ř
Exports to
Ř
Has a robust network consisting of 36
regional offices, over 3,500 dealers and more than 100 C&F agents.
Ř
Has a dedicated Customer Service
department, comprising Customer Service Managers in all four divisional
offices, assisted by 50 Service Engineers.
Vision and
“Subject will each time every time provide Total
Customer Satisfaction through products and services of highest quality and
reliability.
Subject will nurture an exciting and challenging
working environment embedded with fairness and free, frank exchange of views.”
Contact them
Exports
CEAT Mahal
463,
Mumbai – 400 030
Telephone:
+91 22 2493 0621
Fax: +91 22 2493 8933
e-mail: sgulati@ceatltd.com
Middle East and
E-mail: jyoti@ceatltd.com
Customer Cell
CEAT
Mahal
463,
Mumbai – 400 030
Telephone: +91 22 2493 0621
Fax: +91 22 2493 8933
E-mail: customercare@ceatltd.com
OEM
CEAT
Mahal
463,
Mumbai – 400 030
Telephone: +91 22 2493 0621
Fax: +91 22 2493 8933
E-mail: pkshukla@ceatltd.com
CMT REPORT [Corruption, Money laundering & Terrorism]
The Public Notice information has been collected from
various sources including but not limited to: The Courts,
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.41.18 |
|
|
1 |
Rs.82.41 |
|
Euro |
1 |
Rs.55.85 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP
CAPITAL |
1~10 |
9 |
|
OPERATING
SCALE |
1~10 |
9 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
10 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT
LINES |
1~10 |
9 |
|
--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 |
YES |
|
--EXPORT
ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
81 |
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 |
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 |