MIRA INFORM REPORT
|
Report
Date : |
10.12.2008 |
IDENTIFICATION DETAILS
|
Name : |
CEAT LIMITED |
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Registered
Office : |
Ceat Mahal, 463, Dr. Annie Besant Road, Worli, Mumbai
400030, Maharashtra |
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Country: |
India |
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Financials
(as on): |
31.03.2008 |
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Date
of Incorporation : |
10.03.1958 |
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Com.
Reg. No.: |
11-11041 |
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CIN
No.: [Company Identification No.] |
L25100MH1958PLC011041 |
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TAN
No.: (Tax Deduction & Collection Account No.) |
MUMC10660G MUMC11397B |
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PAN
No.: (Permanent Account No.) |
AAACC1645G |
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Legal
Form : |
Public
Limited Liability Company. The
companys shares are listed on the Stock Exchanges. |
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Line
of Business : |
Manufacturing and Marketing of Automotive Tyres,
Automotive Tubes and Automotive Flaps. |
RATING & COMMENTS
|
MIRAs
Rating : |
A |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum
Credit Limit : |
USD
25660000 |
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Status
: |
Good |
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Payment
Behaviour : |
Regular |
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Litigation
: |
Clear |
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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, Dr. Annie Besant Road, Worli, Mumbai
400030, Maharashtra, India |
|
Tel.
No.: |
91-22-24930621/24616054/25640461/25660461/63 |
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Fax
No.: |
91-22-24606039/25640301/25663964 |
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E-Mail
: |
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Website
: |
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Head
Office : |
6, Lotus House, Sir Vithaldas Thakersey Marg, New Marine
Lines, Mumbai 400 020, Maharashtra, India |
|
Tel.
No.: |
91-22-28570014/0378/0376 |
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Factory
1 : |
ท
Village
Road, Bhandup, Mumbai 400 078, Maharashtra |
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Factory
2 : |
ท
82, MIDC Industrial
Estate, Satpur, Nasik 422 007, Maharashtra |
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Regional
Offices: |
1207, 12th Fl, Modicrop Tower 98, Nehru Place
New Delhi - 110 019 Telephone 91-11-51618491 Fax 91-11-26444098 Sco 201, 2, 3, 1st Floor, Sub City Centre,
Sector 34-A, Chandigarh 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,
Faridabad 121 007 Telephone 91-129-5008021/2 Fax 91-129-2429823 C/O Umeed Auto, Auto Market Hissar Road,
Rohtak 124 001 Telephone 91-1262-49895 Sahni Motors Building, 62 Punjab Pura, Delhi Road,
P B No 374, Meerut 250 002 91-121-513635 Fax 91-121-513871 201 A, R H Tower, The Mall, (Next to HTL
Clarks), Varanasi 221102 Telephone 91-542-2503919 Fax 91-542-341919 39, Factory Area, Fazalganj, Kanpur 208 012 Telephone 91-512-219741 Fax 91-512-216522 307, 3rd Floor, Paradise C-61-A,
Sarojini Marg, C Scheme Jaipur 302 001 Telephone 91-141-2372808 Fax 91-141-2372022 DRTC House, 1st Floor Cinema Bldg, Behind
Olympic Cinema, Jodhpur 342 001 Telephone 91-291-616237 Fax 91-291-640721 Plot No 85, Bypass Road, 36-232, D, 1st
Floor New Agra 282 001 Telephone 91-562-2524840 Fax 91-562-2524839 HCL Compound, Niranjan Pur, Saharanpur Road,
Dehradhun 248 001 Telephone 91-135-2001237 792, Sherpur Bypass, Ludhiana 141 003 Telephone 91-161-2675577 Fax Telephone 91-161-2674755 1st Floor, Dhesagar Complex, Opp Dr Wadi
Hospital, Goniana Road, Telephone 91-164-2216706 3rd Floor, Duncan House 31, N.S.
Road, Kolkata 700 001 West Bengal Telephone 91-33- 22130343 Fax 91-33- 22130346 1st Floor 189, G T Road
(East),Rambandhu Talaw, Asansol 713 303 Telephone 91-341-213017 Fax 91-341-213017 7, I A S Colony, Kidwaipuri, Patna 800 001 Telephone 91-612-2524550 Fax 2520511 Arjan Place, 3rd Floor, 5, Main
Road, Ranchi 834 001 Telephone 91-651-2207252 Fax 91-651-206067 R No 407, 4th Floor Nirmala Plaza,
A-1 Forest Park, Bhubaneswar 751 009 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, Central Bazar Road Ramdaspeth, Telephone 91-712-
2547443,55 Fax 91-712- 2547444 13/A, 2nd Floor, Krishna Keval, Commercial
Complex, Kondhwa Telephone 91-20-6835402/3 Fax 91-20-6835404 15, South Civil Lines Caravs Building,
Jabalpur 482 001 Telephone 91-761-325712 Fax 91-761-320531 219, 220, 2nd Floor 6, Indraprastha
Tower, M G Road, Indore 452 001 Telephone 91-731-5091909 Fax 91-731-2524261 Neeldhara, 1st Floor Pritamrai
Road, Ellis Bridge, Ahmedabad 380 006 Telephone 91-79-26577672/73 Fax 91-79-26577297 404, Star Chambers, Harihar Chowk, Panchnath
Plot, Rajkot 360 001 Telephone 91-281-220217/8 Fax 91-281-291302 S J Logistics, B-29/4 Devendra Nagar, Raipur
492 004 (CG) Telephone 91-771- 2582712 C/O Rajkiran Agency Telephone 91-95231- 2462701/2 108/109, Thakkar Tower, Plot No 86, Sec 17,
Vashi, Navi Mumbai Telephone 91-22 55912641 No 2, Vijayaraghava Road, T Nagar, Chennai
600 017 Telephone 91-44-24356387/044-24360769 Fax 91-44-24362519 Sri Sai Baba Chambers, No 2, 1st
Floor, 16, Bharatiya Park Road, Coimbatore 641 043 Telephone 91-422-453939 Fax 91-422-450157 Pritam Plaza, 1st Floor, 82,
Chandrakant Nagar Ponmeni, Bypass Road, Madurai 625 010 Telephone 91-452-2387763/4 Safeena Mansion, P B No 1755, M G Road,
Ernakulam 682 016 Telephone 91-484-353640 Fax 91-484-372720 Jasmine Mansion, 19, J C Road, Bangalore 560
002 Telephone 91-80-2222388 Fax
91-80-2235027 8, Havelock Road, P B No 23, Camp, Belgaum
590 001 Telephone 91-831-2423482 Fax 91-831-2426552 Flat No 418, Maheshwari
Chamber, 6-3-650, Somaji Guda, Hyderabad 500 082 Telephone 91-40-23396722 Fax 91-40-23396539 54/15-3, Srinagar
Colony, Ring Road, Vijayawada 520 008 Telephone 91-866-450170 Fax 91-866-450073 |
DIRECTORS
|
Name : |
Mr. R. P. Goenka |
|
Designation
: |
Chairman |
|
Other
Directorship : |
ุ
CESC
Limited Director ุ
Saregama
India Limited Director ุ
Jubilee
Investments and Ind. Limited - Director ุ
Hilltop
Holdings India Limited Director |
|
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Name : |
Mr. H. V. Goenka |
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Designation
: |
Vice Chairman |
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Name : |
Mr. Paras K. Chowdhary |
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Designation
: |
Managing Director (Appointed on 18/01/2001) |
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|
Name : |
Mr. M. A. Bakre |
|
Designation
: |
Director |
|
Other
Directorship ; |
ุ
Garware
Wall Ropes Limited Director ุ
FGP
Limited Director |
|
|
|
|
Name : |
Mr. A. C. Choksey |
|
Designation
: |
Director |
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Date
of Appointment : |
28/01/2000 |
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|
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|
Name : |
Mr. Hari L. Mundra |
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Designation
: |
Director |
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|
Name : |
Mr. S. Doreswamy |
|
Designation
: |
Director |
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Date
of Appointment : |
27/07/2000 |
|
Other
Directorship : |
ุ
Can
Fin Homes Limited - Chairman ุ
Pantaloon
Retail [India] Limited Director ุ
Kaytee
Switchgear Limited Director ุ
Sakthi
Sugar Limited Director ุ
Sakthi
Auto Component Limited Director ุ
Deposit
Insurance and Credit Guarantee Corporation Limited Director ุ
Caliberpoint
Business Solutions Limited Director |
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|
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|
Name : |
Mr. J. N. Guzder |
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Designation
: |
Director |
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|
Name : |
Mr. H. Khaitan |
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Designation
: |
Director |
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|
Name : |
Mr. B. S. Mehta |
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Designation
: |
Director |
|
Other
Directorship : |
ุ
Atul
Limited Director ุ
Bharat
Bijlee Limited Director ุ
Century
Enka Limited Director ุ
Housing
Development Finance Corporation Limited Director ุ
IL
and FS Investment Mergers Limited [Formerly known as IL and FS Venture
Corporation Limited] Director ุ
J.
B. Chemicals and Pharmaceuticals Limited - Director ุ
Pidilite
Industries Limited Director ุ
Procter
and Gamble Hygiene and Health Care Limited Director ุ
Sasken
Communication Technologies Limited Director ุ
SBI
Capital Markets Limited Director ุ
Sudarshan
Chemical Industries Limited Director ุ
The
Dawn Mills Company Limited Director ุ
Varun
Shipping Company Limited Director ุ
Vinyl
Chemicals [India] Limited Director |
|
|
|
|
Name : |
Mr. K. R. Podar |
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Designation
: |
Director |
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|
Name : |
Mr. Mahesh S. Gupta |
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Designation
: |
Director (Appointed on 02/05/2002) |
KEY EXECUTIVES
|
Name : |
Mr. H. N. Singh Rajpoot |
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Designation
: |
Company Secretary |
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Audit Committee : |
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|
Mr. M.
A. Bakre |
Chairman |
|
Mr.
Mahesh S. Gupta |
Member |
|
Mr. S.
Doreswamy |
Member |
|
Mr. Hari
L. Mundra |
Member |
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|
Shareholders / Investors Grievance Committee : |
|
|
Mr. M.
A. Bakre |
Chairman |
|
Mr.
Paras K. Chowdhary |
Member |
|
Mr.
Mahesh S. Gupta |
Member |
MAJOR SHAREHOLDERS
As on 31.03.2008
|
Category |
No. of Shares held |
% of Shares |
|
Promoters
Holdings (Indian and Foreign) |
14787333 |
43.18 |
|
Mutual
Funds |
5314278 |
15.52 |
|
Banks,
Financial Institutions, Insurance Companies and others |
3254862 |
9.51 |
|
Foreign
Institutional Investors |
3906624 |
11.41 |
|
Non Resident
Indians |
116162 |
0.34 |
|
Corporate
Bodies, Indian Public and others |
6863500 |
20.04 |
|
Total |
34242759 |
100.00 |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturing and Marketing of Automotive Tyres,
Automotive Tubes and Automotive Flaps. |
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Product
: |
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Brand
Name : |
CEAT,
CEAT SECURA, CEAT ENDURA, CEAT MAESTRO, etc. |
PRODUCTION STATUS
|
PARTICULARS |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Automotive Tyres |
Nos. in millions |
4.947 |
4.542 |
7.895 |
|
Automotive Tubes |
Nos. in millions |
4.947 |
-- |
8.612 |
|
Automotive Flaps |
Nos. in millions |
-- |
-- |
2.733 |
GENERAL INFORMATION
|
No. of
Employees: |
4928 |
|
|
|
|
Bankers
: |
ท
Bank
of India Mumbai Corporate Banking Branch, 70-80, Mahatma Gandhi
Road, Mumbai 400023, Maharashtra ท
Bank
of Baroda ท
Indian
Bank ท
State
Bank of India ท
UCO
Bank ท
Vijaya
Bank ท
Corporation
Bank ท
State
Bank of Travancore ท
The
Dhanalakshmi Bank Limited ท
ICICI
Bank Limited ท
The
Karnataka Bank Limited ท
The
United Western Indian Bank ท
Export-Import
Bank of India ท
Industrial
Development Bank of India Limited ท
Yes
Bank Limited |
|
Facilities : |
(Rs. in millions)
In
respect of the above loans, Rs.324.834 millions (Previous year Rs.343.066 millions)
due and repayable within a year Notes: 1.
13.50% (40,00,000 Nos.) Secured Redeemable Non-Convertible Debentures have
been redeemed during the year. Pursuant to repayment, the charge created for
Debentures has been satisfied and released. 2. Corporate
Loan of ICICI Bank Limited of Rs. Nil (Rs.20.000 millions) secured by first pari passu charge on Companys
movable and immovable properties situated at Bhandup and Nasik plants (except
Radial unit) was repaid during the year. Pursuant to repayment, the charge on
the Companys assets for the corporate loan has been satisfied and released. 3. The
loan from IDBI Bank Limited. of Rs.112.500 millions (Rs.142.500 millions) is
secured by first pari passu charge
on movable and immovable properties of the Company situated at Bhandup and
Nasik plants, both present and future. 4. The
ECB loan of US $ 10 Million availed from ICICI Bank Limited has been swapped
into Rupee liability of Rs.459.500 millions (Rs.459.500 millions). This loan
is secured by first pari passu charge
on all immovable and movable properties situated at Bhandup and Nasik plants
of the Company, both present and future. 5. The
loan from The Federal Bank Limited of Rs.6.243 millions (Rs.31.250 millions)
is secured by fi rst pari passu charge
on movable and immovable fixed assets at Companys Bhandup and Nasik plant.
Schedules forming part of the Balance Sheet as at March 31, 2008 6. The
loan from Indian Bank of Rs.266.900 millions (Rs.407.335 millions) is
secured by equitable mortgage of CEAT Mahal property at Worli, Mumbai and
first pari passu charge on
movable assets of the Radial unit at Nasik. 7. Term
Loan from YES Bank Limited amounting to Rs.500.000 millions is to be secured
by first pari passu charge on
CEAT Mahal property. The Company is in the process of creating the security
for the above loan. 8.
Working Capital Term Loan of Rs. Nil (Rs.369.430 millions) from Consortium of
Banks (except Exim Bank and YES Bank Limited) was secured by way of first
charge on the Tea Gardens of Harrisons Malayalam Limited. The loan has since
been repaid. The
Company is in the process of satisfying the said charge. 9.
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 second charge on land at Worli, Bhandup and Nasik Plants together with
factory building. 10. 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.197.081 millions (Previous year Rs.350.672
millions) due and repayable within a year |
|
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|
|
Banking Relations : |
Good |
|
|
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|
Auditors
: |
ท
N.
M. Raiji and Company Chartered Accountants |
|
|
|
|
Legal
Advisors : |
ท
Mulla
and Mulla and Craig, Blunt and Caroe |
|
|
|
|
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
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
34244222 |
Equity Shares |
Rs. 10/-
each |
Rs.342.442
millions |
|
(Includes 1,463 Shares offered on
Right basis and kept in abeyance) |
|||
Subscribed
& Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
34242759 |
Equity Shares |
Rs.10/-
each |
Rs.456.799
millions |
|
|
Add: Forfeited Shares |
|
-- |
|
|
Less: Transfer to Capital Reserve |
|
Rs.0.233
million |
|
|
Add: Received during the year out of shares kept in
abeyance |
|
Rs.0.004
millions |
|
|
Less: Cancellation of paid-up
Share capital as per scheme of arrangement |
|
Rs.114.143
million |
|
GRAND TOTAL |
|
Rs.342.427
millions |
|
Notes:
Of the above Equity Shares
(a) 6,90,576 Shares of Rs. 10 each
were allotted pursuant to Schemes of Amalgamation without payment being
received in cash.
(b)
40,40,223 Shares were allotted as fully paid Bonus Shares by capitalisation of
Share Premium and General Reserve.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share
Capital |
342.427 |
456.799 |
456.799 |
|
|
2] Share Application
Money |
0.000 |
0.000 |
0.000 |
|
|
3]
Reserves & Surplus |
4790.146 |
3329.580 |
3033.244 |
|
|
4]
(Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
5132.573 |
3786.379 |
3490.043 |
|
|
LOAN FUNDS |
|
|
|
|
|
1]
Secured Loans |
2653.908 |
2757.593 |
2912.227 |
|
|
2]
Unsecured Loans |
2122.077 |
2164.955 |
2300.501 |
|
|
TOTAL BORROWING |
4775.985 |
4922.548 |
5212.728 |
|
|
DEFERRED
TAX LIABILITIES |
273.041 |
232.808 |
139.885 |
|
|
|
|
|
|
|
|
TOTAL |
10181.599 |
8941.735 |
8842.656 |
|
|
|
|
|
|
|
|
APPLICATION
OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED
ASSETS [Net Block] |
7866.208 |
7000.097 |
7217.056 |
|
|
Capital
work-in-progress |
34.788 |
101.334 |
42.735 |
|
|
|
|
|
|
|
|
INVESTMENT |
96.023 |
1278.090 |
1278.090 |
|
|
DEFERREX
TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT
ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3410.600
|
2212.171
|
1834.544 |
|
|
Sundry
Debtors |
3079.082
|
2631.707
|
2532.277 |
|
|
Cash
& Bank Balances |
415.870
|
405.513
|
396.127 |
|
|
Other
Current Assets |
0.000 |
0.000 |
0.000 |
|
|
Loans
& Advances |
814.241
|
560.620
|
630.458 |
|
Total Current Assets |
7719.793
|
5810.011 |
5393.406 |
|
|
Less : CURRENT LIABILITIES &
PROVISIONS |
|
|
|
|
|
|
Current
Liabilities |
5282.732
|
4896.485
|
4703.253 |
|
|
Provisions |
252.481
|
351.312
|
385.378 |
|
Total Current
Liabilities |
5535.213
|
5247.797 |
5088.631 |
|
|
Net Current Assets |
2184.580
|
562.214
|
304.775 |
|
|
|
|
|
|
|
|
MISCELLANEOUS
EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
10181.599 |
8941.735 |
8842.656 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
Sales
Turnover |
23299.667 |
21347.781 |
17474.263 |
|
|
Other Income |
230.718 |
244.434 |
226.256 |
|
|
Total
Income |
23530.385 |
21592.215 |
17700.519 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
1973.104 |
609.188 |
52.174 |
|
|
Provision for Taxation |
487.060 |
216.703 |
46.998 |
|
|
Profit/(Loss) After Tax |
1486.044 |
392.485 |
5.176 |
|
|
|
|
|
|
|
|
Earnings
in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
4819.683 |
4294.626 |
3935.029 |
|
|
Royalty |
12.354 |
10.289 |
8.830 |
|
|
Technology Fee/ Dividend |
1.403 |
0.000 |
8.662 |
|
|
Other Earnings |
1.840 |
1.170 |
1.207 |
|
Total
Earnings |
4835.280 |
4306.085 |
3953.728 |
|
|
|
|
|
|
|
|
Imports
: |
|
|
|
|
|
|
Raw Materials |
5345.290 |
4697.412 |
3342.332 |
|
|
Stores & Spares |
2.673 |
6.998 |
4.914 |
|
|
Capital Goods |
129.155 |
31.712 |
26.869 |
|
|
Traded Goods |
566.318 |
329.644 |
221.714 |
|
Total
Imports |
6043.436 |
5065.766 |
3595.829 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Personnel expenses |
1430.205 |
1282.306 |
1185.872 |
|
|
Raw Material Consumed |
14785.283 |
14425.177 |
12092.411 |
|
|
Increase/(Decrease) in Finished Goods |
(175.386) |
(23.620) |
0.000 |
|
|
Exceptional Items |
(799.455) |
0.000 |
0.000 |
|
|
Purchases made for re-sale |
702.454 |
443.522 |
284.363 |
|
|
Interest |
569.388 |
604.271 |
635.561 |
|
|
Depreciation & Amortization |
329.912 |
310.606 |
224.472 |
|
|
Other Expenditure |
4714.880 |
3940.765 |
3455.946 |
|
|
|
6316.634 |
5299.164 |
0.000 |
|
Total
Expenditure |
21557.281 |
20983.027 |
17878.625 |
|
QUARTERLY
RESULTS
|
Particulars |
|
|
30.06.2008 |
30.09.2008 |
|
Type |
|
|
1st
Quarter |
2nd
Quarter |
|
Sales
Turnover |
|
|
6573.600 |
6701.500 |
|
Other
Income |
|
|
118.200 |
98.700 |
|
Total
Income |
|
|
6691.800 |
6800.200 |
|
Total
Expenditure |
|
|
6574.100 |
7001.300 |
|
Operating
Profit |
|
|
117.700 |
(201.100) |
|
Interest |
|
|
139.800 |
166.400 |
|
Gross
Profit |
|
|
(22.100) |
(367.500) |
|
Depreciation |
|
|
86.700 |
42.600 |
|
Tax |
|
|
3.000 |
(121.800) |
|
Reported
PAT |
|
|
(106.700) |
(288.300) |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
PAT /
Total Income |
(%) |
6.32
|
1.82 |
0.03 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.47
|
2.85 |
0.30 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
12.55
|
4.29 |
0.37 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.38
|
0.16 |
0.01 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.01
|
2.69 |
2.95 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.39
|
1.11 |
1.06 |
LOCAL AGENCY FURTHER
INFORMATION
History:
Ceat (previously Ceat Tyres), the flagship of the RPG group,
manufactures steel-belted radials for passenger cars. The various range of
tyres manufactured are marketed under Ceat, Samraat, Secura brand names.
With the amalgamation of Deccan Fibre Glass in 1983 and Murphy India (a BIFR
company) in 1970, Ceat acquired the glass fibre unit and the electronics
division respectively. It also acquired Murphy's photocopier division, which
had Ricoh, Japan, as the technology supplier. The glass fibre unit was sold to
FGP in Jun.'93 while the operations of electronics division have been suspended
from 1992-93 onwards. Associated Ceat (Private) Limited, the company's joint
venture in Srilanka, commenced production of tyres for LCVs towards the end of
1993.
The photocopier division was sold to RPG Ricoh in May'94. The company sold its
tyre cord division to SRF as part of its restructuring programme. It also
transferred its Aurangabad unit to South Asia Tyres, a joint venture with
Goodyear India, in financial collaboration with Goodyear Tyre Company, US, to
manufacture radial and earthmover tyres.
The radial tyre plant has commenced commercial production in Nasik and the
formula one radial tyres have been well received in the market. Ceat is the
first tyre company in India to have been awarded the International accreditation
ISO/TS 16949 - 2002 Quality Standard Certification.
The Company has been 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 Thailand, Hongkong, Eritrea and Israel.
INDUSTRY SCENARIO:
The automobile industry has grown in tandem with development of the country's
Gross Domestic Product (GDP) in the last 2-3 years. During this period, vehicle
production has considerably gone up resulting in a significant growth in
transport network in the country. Economic expansion, investments and road
development have all contributed to this increase in demand for vehicles.
Hence, tyre industry, being an ancillary to the automobile industry has also
grown with equal pace. This, in turn has resulted in the Indian tyre industry
achieving a compounded annual growth rate (CAGR) of 11% in the last five
years.
Currently, the share of automobile industry is about 5% of GDP of the country.
With improved increased transport activity, it is expected to increase
significantly in the next decade. As international automobile majors set up
manufacturing facilities in India, the country is gradually emerging as an
automobile outsourcing and manufacturing hub. This development is expected to
result in a sustainable growth of various segments of automobile industry viz.
2-wheeler, 3-wheeler, passenger cars, commercial vehicles, etc. This will simultaneously
translate into growth of its ancillary, the tyre industry, both in Original
Equipment Manufacturing (OEM) segment and Replacement Market segment. The
demand for tyres in volume terms is expected to grow at a CAGR of 8-9% from
2006-2007 to 2011-2012. Radialization is expected to increase in Medium and
Heavy Commercial Vehicles (MHCV) tyres on account of rising OE fitment and
better road conditions.
With improving margins, the industry has plans for significant capacity
additions to enable it to cater to the growing demand of the domestic market as
well as be a preferred source in many countries.
Raw material prices continue to remain a cause of concern to the industry.
However, through superior product mix and higher price realizations, these cost
pressures have been mitigated to some extent.
PERFORMANCE:
The Company registered a revenue growth of 9% during the year. Growth in volume
as well as value terms were robust in the replacement market and in exports. In
the OE segment where a hardening of the interest regime led to sluggish demand,
the Company was able to maintain profitability through improved product mix.
The Company retained its market share in domestic market in
most categories, during the year through sale of high performance premium
products with greater focus and targeted marketing activities. The product mix
within the largest category i.e. truck tyres has significantly increased share
of high speed, high performance tyres as compared to value tyres, in line with
the shifting demand pattern of consumers. In two wheelers, sales have shifted
to the upsizes, while tubeless tyre sale is also catching up. CEAT has been
able to take full advantage of the demand in the domestic off the Road (OTR)
segment which has been growing as a result of the growth in infrastructure
spending. Production and sales in this segment has almost doubled through the
year. CEAT has been able to step up market share in the small three wheeler
commercial tyre segment, which is a very fast growing market in the country.
The Company with its appropriately segmented product portfolio is well poised
to take advantage of the emerging opportunities in the domestic market.
The industry experienced a significant raw materials cost escalation. CEAT was
able to support its margin to a great extent through innovative initiatives
implemented in the manufacturing and materials front, which led to significant
productivity enhancement and cost reduction. Financing costs were kept on a
very tight leash throughout the year despite increase in interest rates.
Combined with the relentless focus on efficiencies, CEAT has achieved an
impressive improvement in profitability, and registered a net profit of
Rs.1486.000 millions, a growth of about 278.60% over the net profit of Rs.392.500
millions in the previous year.
EXPORTS:
CEAT is now the largest exporter of tyres amongst the members of Automotive
Tyre Manufacturers' Association (ATMA). Its price realization is also the
highest amongst ATMA companies. As a consequence, CEAT has been able to expand
margins from exports considerably. CEAT currently exports its products to more
than 110 countries. During the year, considerable product mix diversification
has also been achieved. New product ranges have been introduced in the farm
sector. This high end range of farm products has started contributing
handsomely to the bottom line.
In export markets; CEAT has made a concerted effort to move as close as
possible to the end customer. This is helping CEAT to stay in tune with emerging
trends in most export markets and to cement ties with its customers.
FUTURE OUTLOOK:
The tyre industry in India is truly globalised with imports
and exports showing rapid increase. On the raw material front too, imports and
domestic sourcing are at comparable levels. Global players have started setting
up manufacturing base in India to take advantage of the growing opportunities
in the domestic market both in terms of sales as well as costs. Noticeably
higher spending on infrastructure is likely to continue to have a direct
consequence on tyre demand in the country for commercial applications. For the
passenger car segment too, higher disposable incomes and more motorable roads
will lead to higher levels of personal transportation.
The OEM sector in India is also seeing entry of many new players including
multinationals. This is expected to accelerate demand for radials for the
commercial segment. CEAT's capacity utilization is optimum at present and
incremental demands would be met through aggressive outsourcing for which
arrangements are already in place.
The Company proposes to set up two grassroot plants, one in Maharashtra for
Specialty Tyres and the other for Radial Tyres for Cars, Utility Vehicles and
Trucks at a total capital outlay of about Rs.9000 millions.
FINANCIAL RESTRUCTURING:
During the current financial year, the Company has successfully implemented the
Scheme of Arrangement (the Scheme) and consequently, the investment undertaking
of the Company was transferred to CHI Investments Limited w.e.f. July 1, 2007.
This is expected to bring about operational efficiencies in its core business
of manufacture and sale of tyres, tubes and flaps.
Pursuant to the Scheme, the Company issued new equity shares in lieu of the old
shares, in the ratio of 75 new equity shares of face value Rs. 10/- each fully
paid up for every 100 equity shares of Rs. 10/- each held by shareholders on
the Record Date i.e. January 2, 2008.
Management Discussion
and Analysis
Economic overview:
With an expected GDP growth rate of about 8.5%, the country's overall
macroeconomic fundamentals are strong, particularly with tangible progress in
recent years towards fiscal consolidation-and a strong balance of payments
position.
India has the largest population of youth in the world, spurring a boom in
consumption in the country. With rise in per capita income, spending has
increased across all categories including automobiles and companies from all
over the world are setting up facilities in India. Today, the country boasts of
companies with world-class capabilities in sectors such as information
technology, manufacturing and pharmaceuticals.
The importance of infrastructure for India's sustained economic development is
also well recognised today. Investment in this sector has gained momentum in
the last few years and is experiencing rapid growth across different
sub-sectors.
All this bodes well for India's tyre industry, since it has been seen that tyre
consumption relates very high with GDP growth and infrastructure spend.
Industry overview:
Global Tyre Industry:
The global tyre industry, worth - USD 112 billion has almost
tripled in the last 20 years and is growing at an annual rate of around 3-5%.
Like its Indian counterpart, it is highly concentrated with the top four
players accounting for more than 60% of the total revenues.
Passenger cars (PC) and Light Commercial Vehicles (LCV) constitute a major
share of global tyre industry product mix. This is different in comparison to
the Indian tyre industry product mix which is dominated by the Medium and Heavy
Commercial Vehicle (MHCV) segment.
Indian Tyre Industry:
The size of the domestic tyre industry is estimated to be around Rs. 190
billion. Over the last five years, it has witnessed a CAGR of 11 %. The
industry comprises of around 40 players in the organized and unorganized
sectors, with an aggregate capacity of over 90 million tyres. The top 7 players
account for over 85% of the market share.
The major share of production (~75%) in the Indian tyre industry is in the
Commercial Vehicle (CV) segment, which consists of the Truck and Bus (T&B),
LCV and tractor tyre segments. However, in the last five years, the tyre
industry has received growth impetus mainly from the Passenger Vehicle (PV)
(11% CAGR), tractor tyres (11% CAGR) and off-the-road (OTR) tyres (16% CAGR).
The CV segment has witnessed a CAGR of 9% over this period.
Indian tyre industry revenue mix - break up of sales revenue:
T&B 60%PC and Jeep 11%Motorcycle 8%LCV 8%Tractor 7%Scooter 3%Others
3%
The tyre industry is a signatory to several trade agreements that allows for
the import of tyres at a concessional rate. The number of tyres imported is
currently ~4% of the number produced domestically, though this proportion has
been increasing over the last few years.
Demand drivers in the Indian Tyre Industry:
Automobile industry:
The strong growth in the auto industry (16% CAGR from 2002-2007) has driven
growth in the tyre industry, keeping both the OEM and replacement/demand
buoyant. Currently, the share of the automobile industry is ~5% of the GDP. It
is expected to increase to 10-12% in the coming decade. Also, India is expected
to emerge as an automobile outsourcing and manufacturing hub in the near
future.
Road infrastructure development:
Nearly 70% of freight and 87% of passenger traffic moves on roads, while
highways alone carry -40% of the total traffic. Improvement in road
infrastructure through projects like the Golden Quadrilateral, North-South
Corridor, East-West Corridor etc. will spur growth in road freight movement and
the auto industry and thereby in the tyre industry.
India's fast-paced growth:
With India growing at an average of around 8% per annum,
there has been a significant rise in per capita income as well as disposable
income. This will help boost the demand in the PC segment, which is expected to
post a CAGR of over 15% in the coming years. Availability of easy finance and
introduction of new PC models are other factors that will boost demand.
Good GDP growth is expected to enhance agricultural and industrial production
which will ensure increased movement of labour and materials. This will fuel
demand for T&B tyres. Currently T&B segment constitutes around 60% of
the total sales of the tyre industry. Around 65% of T&B tyre sales are to
the replacement market, while OEMs contribute around 19%. As a T&B tyre
needs replacement every 60,000 km, the replacement demand will also strengthen.
As many as eight tyre players are expected to make an investment of about
Rs.60000 millions in greenfield facilities within the country, or increase
capacity at existing facilities for CV tyres.
Radialisation:
Indian companies have an opportunity to cash in on the steady switch from the
traditional cross-ply tyres to radial tyres in the CV segment. While the PC
segment in India is 95% radialised (at par with the world average), the T&B
segment is only 3-4% radialised (the world average is 55%).
With the development of new highways as well as the ban on overloading of
trucks in place and its strict implementation, radialisation is expected to
reach 10% in CVs and 20% in LCVs in approximately five years. The steadily
improving demand and better margins offered by radial tyres is prompting tyre
manufacturers in the country to set up new projects for radial tyres.
Exports:
Indian tyres are exported to over 110 countries worldwide and this number has
been growing consistently in terms of volume and reach. Between FY97 and FY07,
exports in tyres grew at a CAGR of ~13%. The value of exports in FY07 was
approximately Rs.20 billion. North America, South America and Europe are large
export markets. CV tyres constitute ~84% of India's total tyre export in
tonnage terms.
Indian
tyres are known for their quality in major global markets. Also, increased
radialisation globally has led to a shortage of traditional cross-ply tyres,
boosting the demand for the same from India.
Business overview:
Profile:
Subject, the flagship company of RPG Enterprises is one of India's leading tyre
manufacturers. In the last one year, the Company recorded the highest ever
growth in sales and emerged as the number one exporter of tyres in the country
amongst companies under the ATMA.
Over the last 50 years, the Company has established a strong presence in both
the domestic and the international markets. It has celebrated its golden
jubilee anniversary this year with a transformation of its visual identity,
that links the Company's heritage to its vision for the future, and a rejuvenated
long term strategy that will enable CEAT to meet the demands of the new age
consuming class across segments.
Operations:
The Company currently manufactures over 6 million tyres every year and commands
13-14% share of the Indian market. One of the most diversified tyre companies
in India, CEAT offers the widest range of tyres to all user segments including
heavy-duty T&B, LCV, Earthmovers and Forklifts (specialty segment),
Tractors, Trailers, PC , Motorcycles and Scooters and Autorickshaws. It is also
the only major tyre manufacturer in India catering to domestic demand in the
OTR tyre segment.
Total installed capacity of about 400 tpd (tonnes per day) has been expanded by
about 60 tpd during the year. Logistics have further been strengthened by setting
up a state-of-the-art warehouse in Panvel. Sale during the last year year of
about 7 acres of surplus land at the Bhandup plant at approximately Rs.1300
millions will help the Company in expanding its capacity in the current
year.
Exports:
Apart from being a major player in the domestic market, CEAT exports to
countries across Europe, Africa and Asia and has an established network in
North and South America. Over the last five years, exports have grown at a CAGR
of --18%. In the last one year, CEAT's presence has increased to over 110
countries including Lebanon, Libya, Morocco, Burundi, Djibouti, Namibia and
Malawi. In FY08, the Company became the number one tyre exporter in the country
with exports valued at Rs.5050 millions.
Network:
CEAT has a robust network consisting of 33 regional offices and over 3,500
dealers, among which ~75 are exclusive dealers running CEAT Shoppe. CEAT's
direct reach in channel is one of the highest in the domestic market. It also
has a dedicated Customer Service department, comprising of Customer Service
Managers in all four divisional offices, assisted by 50 Service
Engineers.
Opportunities:
The infrastructure boom in the country, rising per capita disposable income,
the rising demand in the PC market, the emerging T&B radialisation
opportunity, expansion in the high margin OTR segment, rising tyre exports,
strong growth in the auto industry and sustained replacement demand are factors
that indicate high growth in the Indian tyre industry in the years to come.
All this bodes well for CEAT Its expertise and strong execution capabilities
will allow the Company to exploit this opportunity.
Outlook:
The Company's prospects are strong and show great potential. The Company
targets a growth of around 25% in FY09 with consolidation and expansion in
Indian and global markets, According to CEAT's new long-term strategy,
the Company will invest Rs.10000 millions in two new plants, an R&D centre,
and on re-branding in the next two to three years. Of this, Rs.9000 millions
will go into the new plants, one coming up near Mumbai and a grass root radial
tyres plant. Rs.1000 millions will be invested in an R&D centre and in
brand investments. The Company also plans to substantially increase its
customer centric activities.
A number of other initiatives like de-bottlenecking, rationalization of
manpower costs and improving capacity utilisation are likely to lead to an
improvement in the Company's profit margins.
Threats, Risks and concerns:
The Company is operating in an environment that is becoming
more and more competitive. As it gets into the expansion mode, it is poised to
exploit several new opportunities. The Company seeks to ensure that the risks
it undertakes are commensurate with returns.
Economic Risk:
Factors that may adversely affect the Indian economy and in
turn the Company's business include slowdown in the rate of infrastructure
development, rise in interest rates, inflation, changes in tax, trade, fiscal
and monetary policies, scarcity of credit etc.
Competition Risk:
CEAT faces competition from other major tyre manufacturers in the domestic
industry. Global tyre majors are also planning to enter or have already entered
the Indian market.
Price Risk (Raw Materials):
The tyre industry is characterized by high raw material
cost, which accounts for ~75% of a tyre manufacturer's total operating costs.
Natural Rubber (NR) accounts for ~40% of total raw material cost. In the past,
NR prices have been volatile.
Import Risk:
Increased import of tyres may affect the Company's business. Imposition of
anti-dumping duty by the Government on tyres imported from China and Thailand,
which together constitute ~60% of total imports, would mitigate this risk to
some extent.
Financial performance for the year:
Income:
The Company
recorded net income of Rs.23530.400 millions (excluding extra-ordinary income
of Rs.799.400 millions), as compared to Rs.21592.200 millions for the previous
year, a growth of 8.98%.
EBIDTA:
The Company's EBIDTA stood at Rs.2872.300 millions against Rs.1524.100 millions
in FY07, an increase of 88.46%.
PAT:
The Profit After Tax (PAT) increased from Rs.392.500 millions in FY07 to
Rs.1486.000 millions, an increase of 278.60%.
Pursuant
to the Scheme of Arrangement between Subject, CHI Investments Limited and their
respective shareholders, as approved by the shareholders of the Company in the
Court Convened meeting held on July 27, 2007 and subsequently sanctioned by
Honble High Court of Judicature, at Bombay under the provisions of the
Companies Act, 1956 vide its Order dated 23.11.2007, which was fi led with the
Registrar of the Companies on 11.12.2007, the Investment Undertaking was
transferred to CHI Investments Limited with effect from 1.7.2007. (Appointed
date) and the Scheme has been given effect to during the year.
COMPANY
SNAPSHOT:
The
Company
Subject,
the flagship company of RPG Enterprises is one of India's leading tyre
manufacturers. The Company offers the widest range of tyres to leading Original
Equipment Manufacturers (OEMs) across the world and is also the largest tyre
maker for the replacement market in India. With a strong presence in the
domestic as well as the international market, the Mumbai-based company which
was founded in 1958, celebrates its golden jubilee anniversary this year.
Operations
CEAT
produces over 6 million tyres a year and commands around 14% share of the
Indian tyre market. The Company manufactures a wide range of tyres, catering to
all user segments. This includes tyres for heavy-duty Trucks and Buses
(T&B), Light Commercial Vehicles (LCV), Earthmovers and Forklifts
(specialty segment), Tractors, Trailers, Passenger Cars (PC), Motorcycles,
Scooters and Autorickshaws.
CEAT
earns around 65% of its revenue from the T&B segment.
The
Company currently operates 2 plants in Maharashtra, one in Bhandup and the
other in Nasik. It has a robust national network consisting of 33 regional
offices and over 3,500 dealers, among which ~75 are exclusive dealers running
CEAT Shoppe outlets.
Reach
CEAT's
solid brand equity has helped it achieve a strong footprint in both the
domestic and the international market. It has a presence in over 110 countries.
In
2007-08, the Company also became the number one tyre exporter in the country
with exports valued at Rs.5050 millions.
Quality
Policy
CEAT is
the first tyre company in India to get the ISO/TS 16949 certification, which is
a combination of ISO 9000 and QS 9000. It is a quality management system that
promotes continuous improvement.
It ensures:
The
PDCA (Plan, Do, Check and Act) cycle of process approach
Trim
supply chain by preventing defects and reducing waste
Export
to almost all parts of the world
Fundamental quality management system requirements
No
multiple certification audits
Customer satisfaction
Corporate
Social Responsibility (CSR)
CEAT's
motto is "to positively impact the lives of employees and local
communities directly affected by the business."
It does
this through a series of result-oriented initiatives like:
Providing
opportunities for better education, health improvement and employment
Socio-ecological projects to promote a healthy and safe environment
Healthcare programmes and camps
Adopted
the Tirat Shate village close to the plant in Nasik, where the Company
undertakes various development programmes
Awards
and Achievements
'Innovative Franchise Model' Award to CEAT Shoppe by the Franchising
Association of India
"Excellence in Training" Award of the Asia Pacific HR Congress
Employer Branding Awards 2007 for the India Region
National Exports Award (CAPEXIL) - 13 times
Best
Exports certificate of merit - 7 times in the last 20 years
CCQC
Mumbai Chapter Distinguish Award for Quality Circle in 2007
NCQC
Distinguish Award for Quality Circle in 2006
Winner
of RPG Quality Award in 2003, 2004 and 2006
RPG
Best TQM Team Award for CFT in 2005 and 2006
Recognized with RPG BTT Six Sigma Team Award in 2005-06
Certificate of merit in RPGOE in 2005
Best
case study Award from CII in 2005
NCQC
Distinguish Award for Quality Circle in 2004
ICQCC
Distinguish Award for Quality Circle in 2002
Rated
amongst top four auto ancillaries
100%
vendors are ISO certified
FIXED ASSETS:
- Land
- Buildings
- Plant
and Machinery
- Furniture
and Fixtures
- Vehicles
- Software
Contingent Liabilities:
|
|
Rs. in
millions 31.03.2008 |
|
a)
Direct and Indirect Taxation Matters on which there are decisions of the appellate
authorities in the Companys favour, but appeals made by tax authorities |
|
|
Income Tax |
20.482 |
|
Excise and Custom Duty |
470.172 |
|
Sales Tax |
0.156 |
|
b) Direct and Indirect Taxation
matters in respect of which the Company is in appeal |
|
|
Income Tax |
3.145 |
|
Wealth Tax |
0.599 |
|
Excise and Custom Duty |
18.704 |
|
Sales Tax |
15.591 |
|
c) Disputed demands of Octroi Duty
|
8.500 |
|
d) Export
Incentive |
-- |
|
e) Bills discounted with Banks and
Finance Companies |
634.291 |
|
f) Corporate Guarantees given on
behalf of others |
255.000 |
|
Covered by indemnity
undertakings from RPG Enterprises Limited |
-- |
|
Other Corporate Guarantees |
|
|
g) The
Company has given Indemnity in respect of Lease transactions entered into with
ICICI Bank Limited, liability for which is indeterminable |
|
Claims against the Company not
acknowledged as Debts (Estimated):
|
|
Rs. in
millions 31.03.2008 |
|
i) in respect of labour matters |
76.917 |
|
ii)
other claims |
103.624 |
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 and Saw Mill
v Pukhraj Engineering and 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 and Tyres Private
Limited
The companys
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 Indias leading
tyre manufacturers, with an annual turnover of Rs 1,7800 Millions (US $400
million). Their solid brand equity has empowered them to establish a strong
presence in both, domestic and international markets. Their tyres, tubes and
flaps are renowned for their superior quality and durability, and are
recognized as being born tough.
They offer the widest range of tyres to all user segments, and manufacture
world-class radials for all Indian vehicles including:
ุ
Heavy-duty Trucks and Buses
ุ
Light Commercial Vehicles
ุ
Earthmovers
ุ
Forklifts
ุ
Tractors
ุ
Trailers
ุ
Cars
ุ
Motorcycles and Scooters
ุ
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 and Mahindra, Maruti, L&T, Eicher, Swaraj Mazda, Caterpillar,
Bajaj Tempo, Piaggio, Hero Honda, HMSI (wholly owned subsidiary of Honda
Motors, Japan) and TVS 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
Netherlands.
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
ุ
Subject stands for Cavi Electrici Affini Torino
(Electrical Cables and Allied Products of Turin).
ุ
Subject International was first established in
1924 at Turino in Italy and manufactured cables for telephones and railways.
ุ
In 1958, subject came to India, and CEAT Tyres
of India Limited was established in collaboration with the TATA Group.
ุ
In 1982, the RPG Group took over CEAT Tyres of
India, and in 1990, renamed the company Subject.
Current Scenario
ุ
Manufactures over 6 million tyres every year.
ุ
Enjoys 55% of the local market for light truck
and truck tyres.
ุ
Operates from plants in Mumbai and Nasik.
ุ
Exports to USA, Africa and other parts of Asia.
ุ
Has a robust network consisting of 36 regional
offices, over 3,500 dealers and more than 100 C&F agents.
ุ
Has a dedicated Customer Service department,
comprising Customer Service Managers in all four divisional offices, assisted by
50 Service Engineers.
Contact them
Exports
CEAT Mahal
463, Dr. Annie Besant
Road, Worli
Mumbai 400 030
Telephone:
+91 22 2493 0621
Fax: +91 22 2493 8933
America, Europe and
Far East
e-mail: sgulati@ceatltd.com
Middle East and Africa
E-mail: jyoti@ceatltd.com
Customer Cell
CEAT Mahal
463, Dr. Annie Besant Road, Worli
Mumbai 400 030
Telephone: +91 22 2493 0621
Fax: +91 22 2493 8933
E-mail: customercare@ceatltd.com
OEM
CEAT Mahal
463, Dr. Annie Besant Road, Worli
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, 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 Intl 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 companys 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.49.22 |
|
UK Pound |
1 |
Rs.73.03 |
|
Euro |
1 |
Rs.63.14 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP
CAPITAL |
1~10 |
7 |
|
OPERATING
SCALE |
1~10 |
8 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT
LINES |
1~10 |
8 |
|
--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 |
|
70 |
This score serves as a reference to assess SCs 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 |
Unfavourable
& favourable factors carry similar weight in credit consideration. 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 |
|
NR |
In view
of the lack of information, we have no basis upon which to recommend credit
dealings |
No Rating |
|