MIRA
INFORM REPORT
|
Report Date : |
30.03.2012 |
IDENTIFICATION DETAILS
|
Name : |
CEAT LIMITED |
|
|
|
|
Registered
Office : |
463, |
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|
Country : |
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|
Financials (as on)
: |
31.03.2011 |
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|
|
|
Date of
Incorporation : |
10.03.1958 |
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|
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|
Com. Reg. No.: |
11-011041 |
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|
Capital
Investment / Paid-up Capital : |
Rs.342.435 Millions |
|
|
|
|
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 : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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|
|
Line of Business
: |
Manufacturing and
Marketing of Automotive Tyres, Automotive Tubes and Automotive Flaps. |
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|
|
|
No. of Employees
: |
4928 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A [62] |
|
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 26000000 |
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|
|
|
Status : |
Good |
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|
|
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established and reputed company having fine track. Financial position of the company
appears to be sound. Trade relations are reported as fair. Business is
active. Payments are reported to be regular and as per commitments. The company be
considered for normal business dealings at usual trade terms and
conditions. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
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|
|
|
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
463, Dr. Annie Besant Road, Worli, Mumbai – 400030, Maharashtra, India
|
|
Tel. No.: |
91-22-24930621/
24616054/ 25640461/ 25660461/ 63/ 66670200 |
|
Fax No.: |
91-22-24606039/ 25640301/
25663964/ 66670299/ 24975798 |
|
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, |
|
Tel. No.: |
91-22-28570014/0378/0376 |
|
|
|
|
Factory 1 : |
·
Village
Road, Bhandup, Mumbai – 400 078, |
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|
|
|
Factory 2 : |
· 82, MIDC Industrial Estate, Satpur, Nasik – 422 007, Maharashtra, India |
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Factory 3 : |
· Village Gate Muvala, Halol, Panchmahal - 389350, Gujarat India |
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Regional
Offices: |
Located At: · Chandigarh · New Delhi · Jalandhar · Faridabad · Rohtak · Meerut · Varansi · Kanpur · Jaipur · Jodhpur · New Agra · Ludhiana |
DIRECTORS
(AS ON 31.03.2011)
|
Name : |
Mr. R. P. Goenka |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. H. V. Goenka |
|
Designation : |
Vice Chairman |
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|
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|
Name : |
Mr. Paras K.
Chowdhary |
|
Designation : |
Managing Director
|
|
|
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|
Name : |
Mr. Anant Vardhan
Goenka |
|
Designation : |
Deputy Managing
director |
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|
Name : |
Mr. Vinay Bansal |
|
Designation : |
Director |
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|
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|
Name : |
Mr. A. C. Choksey |
|
Designation : |
Director |
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|
Name : |
Mr. S. Doreswamy |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Mahesh S.
Gupta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Haigreve
Khaitan |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Bansi S.
Mehta |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Hari L.
Mundra |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. K. R. Podar |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. H. N. Singh Rajpoot |
|
Designation : |
Company Secretary |
|
Address : |
463, |
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|
|
|
Audit Committee : |
Mr. Hari L. Mundra - Chairman Mr. S. Doreswamy - Member Mr. Mahesh S. Gupta - Member |
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|
|
|
Shareholders/
Investors Grievance
Committee : |
Mr. Mahesh S. Gupta - Chairman Mr. Paras K. Chowdhary - Member Mr. S. Doreswamy - Member |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 31.12.2011)
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
|
|
|
|
(A) Shareholding
of Promoter and Promoter Group- 51.29%, Public Shareholding- 48.71% |
|
|
|
|
|
|
|
|
28,117 |
0.08 |
|
|
15,753,429 |
46.00 |
|
|
15,781,546 |
46.09 |
|
|
|
|
|
|
|
|
|
|
1,782,348 |
5.20 |
|
|
1,782,348 |
5.20 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
17,563,894 |
51.29 |
|
|
|
|
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
1,813,864 |
5.30 |
|
|
22,344 |
0.07 |
|
|
67 |
- |
|
|
3,052,907 |
8.92 |
|
|
620,342 |
1.81 |
|
|
5,509,524 |
16.09 |
|
|
|
|
|
|
|
|
|
|
2,501,778 |
7.31 |
|
|
|
|
|
|
|
|
|
|
7,900,634 |
23.07 |
|
|
748,688 |
2.19 |
|
|
|
|
|
|
19,016 |
0.06 |
|
|
3,926 |
0.01 |
|
|
15,053 |
0.04 |
|
|
37 |
- |
|
|
11,170,116 |
32.62 |
|
|
|
|
|
Total Public
shareholding (B) |
16,679,640 |
48.71 |
|
|
|
|
|
Total (A)+(B) |
34,243,534 |
100.00 |
|
|
|
|
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
|
|
|
Total
(A)+(B)+(C) |
34,243,534 |
100.00 |
(1)
Indian
Individuals
/ Hindu Undivided Family
Individual
shareholders holding nominal share capital up to Rs.0.100 Million BUSINESS DETAILS
|
Line of Business : |
Manufacturing and
Marketing of Automotive Tyres, Automotive Tubes and Automotive Flaps. |
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Products : |
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Brand Names : |
CEAT, CEAT SECURA,
CEAT ENDURA, CEAT MAESTRO, etc. |
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
|
|
|
|
|
|
Automotive Tyres |
Nos. |
6.559 |
6.559 |
9.400 |
|
Automotive Tubes |
Nos. |
4.947 |
-- |
11.046 |
|
Automotive Flaps |
Nos. |
-- |
-- |
2.692 |
(1) Installed Capacity is as certified by the Management.
(2) Production quantity includes the following procured under conversion
basis.
GENERAL INFORMATION
|
No. of Employees : |
4928 (Approximately) |
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Bankers : |
· Bank of Baroda · Bank of India · Corporation Bank · Exim Bank · ICICI Bank Limited · Indian Bank · Industrial Development Bank of · India · State Bank of India · The Karnataka Bank Limited · UCO Bank · Yes Bank Limited |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
N. M. Raiji and Company Chartered
Accountants |
|
Address : |
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Tel No.: |
91-22-22870068 |
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Fax No.: |
91-22-56568494 |
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E-Mail : |
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|
|
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|
Legal Adviser: |
Mulla and Mulla and Craige Chartered Accountants Blunt and Caroe Chartered Accountants |
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Related Parties : |
· Associated CEAT Holdings Company (Private) Limited · CEAT-Kelani Associated Holdings Company (Private) Limited · Associated CEAT (Private) Limited · CEAT-Kelani International Tyres (Private) Limited · Associated CEAT Kelani Radials Limited · Rado Tyres Limited |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
46100000 |
Equity Share |
Rs.10/- each |
Rs.461.000 Millions |
|
3900000 |
Preference Shares |
Rs.10/- each |
Rs.39.000 Millions |
|
10000000 |
Unclassifed Shares |
Rs.10/- each |
Rs.100.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.600.000
Millions |
Issued:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
34244222 |
Equity Share (Includes 1,463 (2,337) Shares offered on Right basis and
kept in abeyance) |
Rs.10/- each |
Rs.342.442
Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
34243534 |
Equity Share |
Rs.10/- each |
Rs.342.435
Millions |
|
|
|
|
|
NOTES:
Of the above Equity Shares
(a)
6,90,576 Shares 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
capita-lisation of Share Premium and General Reserve.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
342.435 |
342.435 |
342.435 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Convertible Warrants |
60.542 |
0.000 |
0.000 |
|
|
4] Reserves & Surplus |
6088.475 |
5944.710 |
4541.380 |
|
|
5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
6491.452 |
6287.145 |
4883.815 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
6241.346 |
3120.511 |
3981.243 |
|
|
2] Unsecured Loans |
3947.534 |
3417.944 |
2470.199 |
|
|
TOTAL BORROWING |
10188.880 |
6538.455 |
6451.442 |
|
|
DEFERRED TAX LIABILITIES |
241.054 |
201.683 |
163.038 |
|
|
|
|
|
|
|
|
TOTAL |
16921.386 |
13027.283 |
11498.295 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
13610.929 |
7689.278 |
7753.859 |
|
|
Capital work-in-progress |
1233.963 |
2338.380 |
195.610 |
|
|
|
|
|
|
|
|
INVESTMENT |
865.298 |
585.077 |
426.672 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
5674.630
|
4060.757
|
2194.163
|
|
|
Sundry Debtors |
4686.797
|
3763.161
|
3187.085
|
|
|
Cash & Bank Balances |
478.806
|
1399.891
|
2015.184
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
1315.559
|
1101.026
|
794.264
|
|
Total
Current Assets |
12155.792
|
10324.835
|
8190.696
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
2830.834
|
2285.314
|
2613.513 |
|
|
Other Current Liabilities |
7842.593
|
5261.486
|
2276.999
|
|
|
Provisions |
271.169
|
363.582
|
178.029
|
|
Total
Current Liabilities |
10944.596
|
7910.382
|
5068.541
|
|
|
Net Current Assets |
1211.196
|
2414.548
|
3122.155
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
16921.386 |
13027.283 |
11498.296 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
34689.225 |
28074.760 |
23664.892 |
|
|
|
Other Income |
602.228 |
421.352 |
491.300 |
|
|
|
TOTAL (A) |
35291.453 |
28496.112 |
24156.192 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials |
26496.978 |
17174.989 |
17042.851 |
|
|
|
Cost of Traded Goods Sold |
938.568 |
1631.364 |
1066.456 |
|
|
|
Personnel Expenses |
2040.809 |
1926.668 |
1606.927 |
|
|
|
Other Expenses |
5768.750 |
4653.978 |
3976.510 |
|
|
|
Increased / (Deceased) In Stock |
(1490.903) |
(117.995) |
(117.983) |
|
|
|
Exceptional Item (Voluntary Retirement Compensation) |
78.223 |
0.000 |
0.000 |
|
|
|
TOTAL (B) |
33832.425 |
25269.004 |
23574.761 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1459.028 |
3227.108 |
581.431 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES (D) |
784.952 |
568.314 |
696.981 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
674.076 |
2658.794 |
(115.550) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
341.657 |
268.829 |
256.173 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
332.419 |
2389.965 |
(371.723) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
109.586 |
779.550 |
210.607 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
222.833 |
1610.415 |
(161.116) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2373.102 |
1084.440 |
1245.556 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
17.000 |
161.500 |
-- |
|
|
|
Proposed Dividend |
68.487 |
136.974 |
-- |
|
|
|
Tax on Proposed Dividend |
10.581 |
23.279 |
-- |
|
|
BALANCE CARRIED
TO THE B/S |
2499.867 |
2373.102 |
1084.440 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
6219.495 |
4802.450 |
4859.400 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
9342.070 |
5949.211 |
6018.911 |
|
|
|
Components & Spares |
18.250 |
19.734 |
10.073 |
|
|
|
Capital Goods |
2289.103 |
60.264 |
88.563 |
|
|
|
Traded Goods |
487.942 |
584.347 |
718.232 |
|
|
TOTAL IMPORTS |
12137.365 |
6613.556 |
6835.779 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
6.51 |
47.03 |
(4.71) |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
10782.600 |
11180.100 |
10654.400 |
|
Total Expenditure |
10875.800 |
10568.300 |
10052.700 |
|
PBIDT (Excl OI) |
(93.200) |
611.800 |
601.700 |
|
Other Income |
3.900 |
3.100 |
2.200 |
|
Operating Profit |
(89.300) |
614.900 |
603.900 |
|
Interest |
342.100 |
359.300 |
381.000 |
|
Exceptional Items |
(31.600) |
0.000 |
0.000 |
|
PBDT |
(463.000) |
255.600 |
222.900 |
|
Depreciation |
157.200 |
172.600 |
187.600 |
|
Profit Before Tax |
(620.200) |
83.000 |
35.300 |
|
Tax |
(201.200) |
26.900 |
11.400 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(419.000) |
56.100 |
23.900 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
(419.000) |
56.100 |
23.900 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
0.63
|
5.66
|
(0.63) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.96
|
8.52
|
(1.48) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.29
|
13.27
|
(2.33) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.05
|
0.38
|
(0.08) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.26
|
2.30
|
2.36 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.11
|
1.31
|
1.62 |
LOCAL AGENCY FURTHER INFORMATION
PERFORMANCE: The year was one of the most challenging in recent times with regard to raw material cost. Natural rubber prices touched an all time high both in the international and domestic markets. Poor crop in key rubber producing countries and strong surge in demand led to an unprecedented increase in the price. Natural Rubber and the entire spectrum of other raw materials showed a rising trend in costs as compared to the previous year with Natural Rubber prices surging up by 67 per cent, synthetic rubber by 44 percent, carbon black by 14 per cent and nylon fabric by 16 per cent. The overall basket of raw materials escalated by 40 per cent and the upward trend continues in the current year as well.
With domestic
competition intensifying further, despite best efforts, the Company could not
pass on the entire cost increase to the customers. Consequently, margins saw
significant erosion and the net profit declined from Rs.1610.400 Millions in
the previous year to Rs.222.800 Millions during the
year.
The Company’s revenue saw a
growth of 23.5 per cent from Rs.28080.000 Millions in the previous year to Rs.34690.000
Millions during
the year. Good growth was visible in all three market segments viz.
Replacement, Original Equipment Manufacturers (OEM) and Exports. The industry
also grew at about the same rate resulting in market share of the Company
remaining at the same levels.
CEAT continues to be one of the largest exporters of tyres. With better thrust and continued focus, the Company was able to increase its exports to Rs.6240.000 Millions as against Rs.4790.000 Millions for the previous year registering a healthy growth of more than 30 per cent. The market mix for exports also improved significantly, leading to higher price realisation.
The Company has attained greater strength in
supply chain management and logistics. Hence, it is now better placed to
outsource and develop a large base of vendors who supply finished products
under technical and manufacturing supervision of the Company. As a result, the
Company has succeeded in generating 23 per cent of
its revenue through
outsourcing. CEAT will continue its endeavor to explore the outsourcing option
to improve its market share in key segments.
INDUSTRY
SCENARIO AND FUTURE OUTLOOK
The Indian economy has emerged from the
global financial crisis remarkably and rapidly, with a robust growth of over 8
per cent. The growth was exhibited across all segments of the economy and the
growth of the automotive sector has exceeded expectations. The tyre industry being
an ancillary of the automotive sector also experienced increased demand. The
tyre industry is a USD 140 billion industry globally and the Indian Tyre
Industry commands a share of only 4.5 per cent at USD 6.8 billion. The industry
is projected to grow at a CAGR of over 15 per cent over the next five years.
As the Company embarks on a new phase of its
journey, it is better poised to accept new challenges and take full advantage
of favourable market conditions. The Company expects to grow at a good pace in
the next few years and hopes to increase market share in all segments
particularly PCR and Motorcycle.
A dampener on the good demand conditions,
however, is the raw material scenario, particularly that of Natural Rubber,
which is expected to continue to exert pressure on margins in the first quarter
of 2012. We are hopeful that the raw material prices will stabilize thereafter.
ASSOCIATED
CEAT KELANI VENTURE
(Joint Venture in Sri Lanka)
The Company has acquired a stake of 45.16
per cent in Associated CEAT Holdings Company Private Limited (ACHL), the
Company’s investment arm in Sri Lanka during the year. With this acquisition,
ACHL has become a wholly owned subsidiary of the Company. ACHL controls 50 per
cent stake in the joint venture company viz. CEAT Kelani Holding Private
Limited which in turn has three wholly owned tyre manufacturing companies. ACHL
consolidates 50 per cent of the joint venture in its accounts as per Sri Lankan
laws.
During the year, ACHL has registered a
revenue of LKR 3,790.83 million during 2010-11 as compared to LKR 2,702.66
million in the previous year, registering a growth of 51.90 per cent. Profit
after tax stood at LKR 277.89 million as compared to profit after tax of LKR
261.48 million. The Company has dominant market share in all categories of
tyres.
MANAGEMENT DISCUSSION AND ANALYSIS ECONOMIC OVERVIEW The Indian economy has once again emerged as
one of the most successful performers globally with the GDP growth of 8.6 per
cent. The growth has been broad with a rebound in the agricultural (5.4 per
cent), industrial (8.6 per cent), and manufacturing sectors (9.1 per cent).
Although there have been few threats and crises in the Indian economy due to the
high rates of inflation and increase in expenses of essential commodities like
food and oil, the Indian policy makers are routing a way to ensure sustainable
long term growth.
The pace of economic activity in the country
is directly reflected in the tyre off take by different automobile segments.
The prospects of the Indian economy have thus augured well for the Indian tyre
industry.
TYRE INDUSTRY REVIEW GLOBAL SCENARIO
As of
April 2011, the Global Tyre market is worth approx USD 140 billion, with the
Original Equipment Manufacturer (OEM) segment and replacement segment
constituting 30 per cent and 60 per cent respectively of the overall tyre
markets. Owing to excellent road infrastructure, the extent of radialisation is
much higher in the developed nations. The average radialisation levels in the
medium to heavy commercial vehicles is around 60 per cent, whereas in
geographies like North America and Europe it is as high as 95 per cent.
INDIAN
SCENARIO
The chronicle of Indian tyre industry
started in 1926. Since then, the industry has grown rapidly, harmonising with
the growth of automobile industry. A highly capital and raw material intensive
and predominantly cross ply (or bias) tyre manufacturing industry, produces all
categories of tyres, except snow tyres and aero tyres. The industry is
dominated by the organised sector while the unorganised sector holds control
over bicycle tyres. After the abysmal performance post slowdown in FY 2009, the
industry has witnessed considerable rebound in FY 2010, driven by the economic
revival, resurgence in automobile demand, rising per capita income and ease of
interest rates.
While more and more people opt for two-wheelers, value-wise; the sector is strongly dominated by the Medium to Heavy Commercial Vehicle (MHCV) and Light Commercial Vehicle (LCV) segment, a reflection directly linked to the country’s economic development. With greater access to, and introduction of, affordable Passenger Vehicles (PV), Cars and Utility Vehicles (UV) follow a close second. The two-wheeler, three-wheeler, exports and other segments such as Off The Road (OT R), tractors, construction equipment, etc. collectively constitute the remaining pie.
BUSINESS OVERVIEW Subject is geared to meet customer needs in
every segment. It offers a wide array of tyres, which include heavy duty Trucks
and Buses (T&B), Light Commercial Vehicles (LCVs), Passenger Cars (PC),
earthmovers and forklifts (Specialty segment), tractors, trailers, scooters, motorcycles,
auto-rickshaws and 2/3 wheelers. The Company markets flaps and tubes outsourced
from partners, thereby becoming a one-stop shop to cater to its wide consumer
base.
Truck and Bus tyres are the highest
contributor to the annual turnover of the Company (61 per cent). In terms of
market segments, replacement market contributes around 75 per cent in the
topline.
PERFORMANCE
OVERVIEW
OPERATIONAL
OVERVIEW
To enrich customer experience, the Company continuously expands its range of products and services. To facilitate the paddy farmer, CEAT launched India’s first Rice Special tyre (Aayushmaan R2) last year for tractors used in paddy fields. Besides this, the Company was also involved in the following activities to act upon various learning from its consumer feedback.
FINANCIAL OVERVIEW Net sales increased 23 per cent from
Rs.28074.760 Millions in 2009-10 to Rs.34689.225 Millions in 2010-11. The
growth is attributed to expanded product portfolio, increased sales volume,
superior customer service and improved capacity utilisation.
Secured loan almost doubled from Rs.3120.511
Millions in 2009-10 to Rs.6241.346 Millions in 2010-11, mainly utilised for
Capacity expansion at Halol and acquisition of “CEAT” brand from Pirelli and C.
S.p.A, Italy.
Operating expense increased by
39 per cent because of the 54 per cent hike in cost of raw materials, which
impacted the PAT. PAT decreased from Rs.1610.415 Millions in 2009-10 to
Rs.222.833 Millions in 2010-11.
FIXED ASSETS:
· Land (Freehold / Leasehold)
· Building
· Plant and Machinery
· Furniture and fixture
· Vehicles
WEBSITE DETAILS:
COMPANY OVERVIEW:
On
the road since 1958, subject has run up to be one of the best tyre
manufacturers in the business. They not only make trailblazing tyres, but also
market tubes and flaps. And that's not all. At CEAT they personify their
business; tough yet smooth, secure yet ready to explore the undaunted.
They
are young and revving to go; with a maturity that comes with years of market
presence. More than 3000 Cr annual turnover, an impressive list of clients and
OEMs, various awards and certificates are statistics that could speak for them.
But we'd rather scorch the road with their performance!
They
believe that tyres are not just accessories; they are the force that moves the
aspirations. With them you get to choose from a wide range of tyres that suit
the needs and vehicle type. (Not to mention, their radials are racers in the
world market!) Strength is one of the most important attributes of their
products, which complements their solid foundation as a part of RPG
Enterprises. Their commitment to quality ensures that you have a safe ride,
always. So go on, defy destiny.
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.51.15 |
|
|
1 |
Rs.81.41 |
|
Euro |
1 |
Rs.68.22 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
62 |
This score serves as a reference to
assess SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial condition (40%) Ownership background (20%) Payment
record (10%)
Credit history (10%) Market trend (10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.