MIRA
INFORM REPORT
|
Report Date : |
27.07.2013 |
IDENTIFICATION DETAILS
|
Name : |
CEAT LIMITED |
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|
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Registered
Office : |
463, |
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|
Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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|
Date of
Incorporation : |
10.03.1958 |
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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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|
|
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 of automotive tyres, tubes and flaps. |
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|
|
|
No. of Employees
: |
4928 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (61) |
|
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 29000000 |
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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 good track record. There appears
better growth in its turnover and profits during 2013. Trade relations
are reported as decent. Business is active. Payments are reported to be
regular and as per commitments. The company can
be considered good for business dealings at usual trade terms and conditions.
|
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
BBB (Long Term Bank Facility) |
|
Rating Explanation |
Moderate degree of safety and moderate credit risk |
|
Date |
January 18, 2012 |
|
Rating Agency Name |
CARE |
|
Rating |
A3+ (Short Term Bank Facility) |
|
Rating Explanation |
Moderate degree of safety and higher credit risk |
|
Date |
January 18, 2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (EMPLOYEE PROVIDENT FUND) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED BY
Management Non Cooperative. (91-22-24930621)
LOCATIONS
|
Registered Office : |
463, |
|
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 |
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|
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|
Factory 1 : |
Village Road, Bhandup, Mumbai – 400 078, |
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|
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Factory 2 : |
82, MIDC Industrial Estate, Satpur, |
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|
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Factory 3 : |
Village Gate Muvala, Halol, Panchmahal - 389350, Gujarat |
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|
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Regional
Offices: |
Located At: ·
·
· Jalandhar ·
· Rohtak ·
· Varansi ·
· Jaipur ·
·
New ·
|
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr. H. V. Goenka |
|
Designation : |
Chairman |
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|
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|
Name : |
Mr. Anant Vardhan Goenka |
|
Designation : |
Managing Director |
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|
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|
Name : |
Mr. Arnab Banerjee |
|
Designation : |
Executive Director – Operations |
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|
Name : |
Mr. Vinay Bansal |
|
Designation : |
Director |
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|
Name : |
Mr. A. C. Choksey |
|
Designation : |
Director |
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|
Name : |
Mr. Paras K. Chowdhary |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. S. Doreswamy |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Mahesh S. Gupta |
|
Designation : |
Director |
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|
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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|
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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 |
SHAREHOLDING PATTERN
As on: 30.06.2013
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
148117 |
0.43 |
|
|
16891096 |
49.33 |
|
|
17039213 |
49.76 |
|
|
|
|
|
|
1782348 |
5.20 |
|
|
1782348 |
5.20 |
|
Total shareholding of Promoter and Promoter Group (A) |
18821561 |
54.96 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1436362 |
4.19 |
|
|
19900 |
0.06 |
|
|
9700 |
0.03 |
|
|
1927935 |
5.63 |
|
|
11276 |
0.03 |
|
|
3405173 |
9.94 |
|
|
|
|
|
|
2652860 |
7.75 |
|
|
|
|
|
|
7507041 |
21.92 |
|
|
1839043 |
5.37 |
|
|
17856 |
0.05 |
|
|
3766 |
0.01 |
|
|
14053 |
0.04 |
|
|
37 |
0.00 |
|
|
12016800 |
35.09 |
|
Total Public shareholding (B) |
15421973 |
45.04 |
|
Total (A)+(B) |
34243534 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
34243534 |
0.00 |
Shareholding of securities
(including shares, warrants, convertible securities) of persons belonging to
the category Promoter and Promoter Group
|
Sl. No. |
Name of the
Shareholder |
No.
of Shares held |
As
a % of grand total (A)+(B)+(C) |
Number
of warrants held |
As
a % total number of warrants of the same class |
|
1 |
Anant Vardhan Goenka |
14,185 |
0.04 |
0 |
0.00 |
|
2 |
Harsh Vardhan Goenka |
3,799 |
0.01 |
0 |
0.00 |
|
3 |
Harsh Vardhan Goenka |
10,133 |
0.03 |
0 |
0.00 |
|
4 |
Harsh Vardhan Goenka |
1,20,000 |
0.35 |
0 |
0.00 |
|
5 |
Chattarpati Investments Limited |
2,75,876 |
0.81 |
0 |
0.00 |
|
6 |
Instant Holdings Limited |
41,55,743 |
12.14 |
0 |
0.00 |
|
7 |
Instant Holdings Limited |
48,26,467 |
14.09 |
0 |
0.00 |
|
8 |
Instant Holdings Limited |
8,16,426 |
2.38 |
1712176 |
100.00 |
|
9 |
STEL Holdings Limited |
13,72,835 |
4.01 |
0 |
0.00 |
|
10 |
Summit Securities Limited |
9,58,759 |
2.80 |
0 |
0.00 |
|
11 |
SWALLOW Associates Limited |
59,524 |
0.17 |
0 |
0.00 |
|
12 |
SWALLOW Associates Limited |
44,25,100 |
12.92 |
0 |
0.00 |
|
13 |
Trade Apartments Limited |
366 |
0.00 |
0 |
0.00 |
|
14 |
Societe Ceat D Investissementen Asie S A |
17,82,348 |
5.20 |
0 |
0.00 |
|
|
Total |
1,88,21,561 |
54.96 |
1712176 |
100.00 |
Shareholding of securities
(including shares, warrants, convertible securities) of persons belonging to
the category Public and holding more than 1% of the total number of shares
|
Sl. No. |
Name of the
Shareholder |
No.
of Shares held |
As
a % of grand total (A)+(B)+(C) |
|
1 |
Anant Vardhan Goenka |
14,185 |
0.04 |
|
2 |
Harsh Vardhan Goenka |
3,799 |
0.01 |
|
3 |
Harsh Vardhan Goenka |
10,133 |
0.03 |
|
4 |
Harsh Vardhan Goenka |
1,20,000 |
0.35 |
|
5 |
Chattarpati Investments Limited |
2,75,876 |
0.81 |
|
6 |
Instant Holdings Limited |
41,55,743 |
12.14 |
|
7 |
Instant Holdings Limited |
48,26,467 |
14.09 |
|
8 |
Instant Holdings Limited |
8,16,426 |
2.38 |
|
9 |
STEL Holdings Limited |
13,72,835 |
4.01 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of automotive tyres, tubes and flaps. |
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Products : |
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Brand Names : |
CEAT, CEAT SECURA, CEAT ENDURA, CEAT MAESTRO, etc. |
GENERAL INFORMATION
|
No. of Employees : |
4928 (Approximately) |
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Bankers : |
· Axis Bank Limited · Bank of Baroda · Bank of India · Corporation Bank · EXIM Bank · ICICI Bank Limited · IDBI Bank Limited · State Bank of India · UCO Bank · Yes Bank Limited |
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Facilities : |
(Rs.
In Millions)
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
S. R. Batliboi and Associates LLP Chartered Accountants |
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|
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|
Legal Adviser: |
1. Mulla and Mulla and Craige Chartered Accountants 2. Blunt and Caroe Chartered Accountants |
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Related parties
where control exists : |
· Associated CEAT Holdings Company Private Limited (ACHL) (Subsidiary Company) · CEAT Bangladesh Limited (CEAT Bangladesh) (Subsidiary Company) · CEAT-Kelani Holdings Company Private Limited (CKHL) (Joint Venture of ACHL ) · Associated CEAT Private Limited (ACPL) (Subsidiary of CKHL) · CEAT-Kelani International Tyres Private Limited, (CKITL) (Subsidiary of CKHL) · CEAT Kelani Radials Limited (CKRL) (Subsidiary of CKHL) · Rado Tyres Limited (Associate Company) |
CAPITAL STRUCTURE
As on: 31.03.2013
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 |
|
|
Total |
|
Rs.600.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
34243534 |
Equity Shares |
Rs.10/- each |
Rs.342.435
Millions |
|
|
|
|
|
Reconciliation of
equity share and outstanding
|
Equity Shares |
2012-2013 |
|
|
Number |
Rs. In Millions |
|
|
Shares outstanding at the begining of the year |
3,42,43,534 |
342.435 |
|
Shares issued during the year |
- |
- |
|
Shares bought back during the year |
- |
- |
|
Shares outstanding at the end of the year |
3,42,43,534 |
342.435 |
Terms and rights
attached to Equity Shareholders:
The Company has only one class of equity shares having a face value of Rs. 10/- per share. Each holder of equity Shares is entitled to one vote per equity share. The dividend is recommended by the Board of Directors and is subject to the approval of the members at the ensuing Annual General Meeting. The Board of Directors have a right to deduct from the dividend payable to any member any sum due from him to the Company.
In the event of winding-up, the holders of equity shares shall be entitled to receive remaining assets of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by shareholders.
The shareholders have all other rights as available to equity shareholders as per the provision of the Companies Act, 1956, read together with the Memorandum of Association and Articles of Association of the Company, as applicable.
Shares in the Company
held by each shareholder holding more than 5% of the number of equity shares
|
|
As at 31st Mar 2013 |
|
|
|
No. of shares held |
% of Holding |
|
Instant Holdings Limited |
96,06,636 |
28.06% |
|
Goodhope Sales Private Limited * |
- |
- |
|
Swallow Associates LLP # |
44,84,624 |
13.10% |
|
Societe Ceat D Investissementen Asie S A |
17,82,348 |
5.20% |
* Merged with Instant Holdings Limited w.e.f. 15th May, 2012
# Swallow Associates Limited upto 30th October, 2012.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
342.435 |
342.435 |
342.435 |
|
(b) Reserves & Surplus |
7087.676 |
6184.604 |
6088.475 |
|
(c) Money
received against share warrants |
36.397 |
36.397 |
60.542 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
7466.508 |
6563.436 |
6491.452 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
4216.689 |
5793.423 |
5992.026 |
|
(b) Deferred tax liabilities (Net) |
745.207 |
334.284 |
241.054 |
|
(c) Other long term liabilities |
14.220 |
14.220 |
11.154 |
|
(d) long-term provisions |
120.069 |
80.418 |
82.771 |
|
Total Non-current Liabilities (3) |
5096.185 |
6222.345 |
6327.005 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term
borrowings |
3821.581 |
5011.587 |
3046.399 |
|
(b) Trade payables |
7760.612 |
6443.290 |
7464.022 |
|
(c) Other current
liabilities |
5762.251 |
5776.650 |
4469.720 |
|
(d) Short-term provisions |
654.359 |
209.184 |
188.398 |
|
Total Current Liabilities (4) |
17998.803 |
17440.711 |
15168.539 |
|
|
|
|
|
|
TOTAL |
30561.496 |
30226.492 |
27986.996 |
|
|
|
|
|
|
II. ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
14419.224 |
14595.374 |
12986.388 |
|
(ii) Intangible Assets |
610.080 |
645.269 |
624.539 |
|
(iii) Capital
work-in-progress |
99.354 |
134.159 |
1061.820 |
|
(iv)
Intangible assets under development |
0.000 |
0.200 |
11.739 |
|
(b) Non-current Investments |
447.084 |
441.632 |
439.922 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
1182.919 |
452.755 |
219.567 |
|
(e) Other Non-current assets |
105.728 |
113.473 |
0.000 |
|
Total Non-Current Assets |
16864.389 |
16382.862 |
15343.975 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
303.196 |
425.376 |
|
(b) Inventories |
5314.401 |
5796.059 |
5674.631 |
|
(c) Trade receivables |
6357.459 |
6142.276 |
4807.193 |
|
(d) Cash and cash
equivalents |
813.501 |
371.534 |
478.807 |
|
(e) Short-term loans
and advances |
1048.570 |
1122.763 |
1234.595 |
|
(f) Other current
assets |
163.176 |
107.802 |
22.419 |
|
Total Current Assets |
13697.107 |
13843.630 |
12643.021 |
|
|
|
|
|
|
TOTAL |
30561.496 |
30226.492 |
27986.996 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue From Operations |
48814.447 |
44757.318 |
34987.718 |
|
|
|
Other Income |
214.759 |
287.098 |
284.357 |
|
|
|
TOTAL (A) |
49029.206 |
45044.416 |
35272.075 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
33432.626 |
32716.056 |
|
|
|
|
Purchases of Stock-in-trade |
687.093 |
516.073 |
|
|
|
|
Changes in Inventories of finished goods, work-in-progress and Stock-in-trade |
(341.931) |
258.996 |
|
|
|
|
Employee Benefits Expense |
2690.974 |
2165.281 |
|
|
|
|
Other Expenses |
8100.745 |
6632.875 |
|
|
|
|
Exceptional Item |
276.956 |
31.564 |
|
|
|
|
TOTAL (B) |
44846.463 |
42320.845 |
33594.413 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4182.743 |
2723.571 |
1677.662 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1943.764 |
1921.615 |
1003.585 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2238.979 |
801.956 |
674.077 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
781.648 |
704.741 |
341.657 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1457.331 |
97.215 |
332.420 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
393.816 |
21.830 |
109.586 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1063.515 |
75.385 |
222.834 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2535.455 |
2499.868 |
2373.102 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend on Equity Shares |
136.974 |
34.244 |
68.487 |
|
|
|
Corporate Tax on Proposed Dividend |
23.279 |
5.554 |
10.581 |
|
|
|
Transfer to General Reserve |
110.000 |
0.000 |
17.000 |
|
|
BALANCE CARRIED
TO THE B/S |
3328.717 |
2535.455 |
2499.868 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Sales calculated on FOB basis |
10899.587 |
9927.588 |
6147.067 |
|
|
|
Royalty |
36.984 |
36.264 |
27.162 |
|
|
|
Dividend |
56.847 |
64.641 |
72.026 |
|
|
|
Technical Development Charges |
0.000 |
4.500 |
0.00 |
|
|
TOTAL EARNINGS |
10993.418 |
10032.993 |
6246.255 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
13489.009 |
13874.172 |
9342.070 |
|
|
|
Traded Goods |
264.068 |
137.452 |
487.942 |
|
|
|
Components & Spares |
68.156 |
27.913 |
18.250 |
|
|
|
Capital Goods |
156.069 |
770.488 |
2289.103 |
|
|
TOTAL IMPORTS |
13977.302 |
14810.025 |
12137.365 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
31.06 |
2.20 |
6.51 |
|
|
|
Diluted |
30.44 |
2.20 |
-- |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
2.17
|
0.17 |
0.63
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.99
|
0.22 |
0.95
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.86
|
0.33 |
1.28
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.20
|
0.01 |
0.05
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.08
|
1.65 |
1.39
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.76
|
0.79 |
1.02
|
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF CURRENT
MATURITIES OF LONG-TERM DEBT
(Rs.
in Millions)
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
Current Maturities of long-term debt |
2078.297
|
1998.399 |
876.899
|
|
Sr. No. |
Check List by Info
Agents |
Available in Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
---------------------- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
---------------------- |
|
22] |
Litigations that the firm / promoter involved in |
---------------------- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
---------------------- |
|
26] |
Buyer visit details |
---------------------- |
|
27] |
Financials, if provided |
Yes |
|
428] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
CEAT'S PERFORMANCE
The Company registered a growth of 9.1 per cent in turnover from Rs. 44354.000 Millions in the year 2011-12 to Rs. 48367.000 Millions in 2012-13. Manufacturing operations at the radial plant at Halol, near Baroda in Gujarat ramped up to 80 per cent capacity utilisation by Q4 of the year thereby improving the financial performance of the Company.
A favourable product mix towards categories of motorcycle, scooter, passenger car, utility vehicles and last mile tyres contributed positively to the bottom line.
In spite of a shrinking OEM market, the Company's performance in this segment was impressive with a 37 per cent volume growth posted against last year.
During 2012-13, prices of key raw materials like Natural Rubber and Synthetic Rubber fell by 8 to 10 per cent and helped increase profits for the Company.
The operating margins of the Company improved by 3.2 per cent with the operating profit increasing from Rs. 2468.000 Millions in the year 2011-12 to Rs. 4245.000 Millions in the year 2012-13. Net Profit increased from Rs. 75.000 Millions in 2011-12 to Rs. 1064.000 Millions in 2012-13.
The Company also expanded its product portfolio with the 'CZAR' range of Utility Vehicle tyres being a key development. An advertising campaign was launched for this new product range while the successful motorcycle tyre 'Be Idiotsafe' campaign also continued.
FUTURE OUTLOOK
The tyre industry in India is passing through a challenging phase much like the overall economy. Such a drastic fall in the sales of commercial vehicles during the year has not been witnessed in a long time. In the short term, therefore, the outlook for tyre industry is not a very optimistic one. The tyre industry's growth is expected to be in sync with the GDP growth. However, replacement demand from vehicle sales over the past two years can provide an opportunity.
The Company expects tyre demand to revive over medium term.
A weakening Rupee and high interest rates are currently the areas of concern for the tyre industry, but are expected to improve during the course of the year ahead. With the stable forecast of raw material prices, the Company expects a positive year ahead.
UNSECURED LOAN:
(Rs. in Millions)
|
Particulars |
As
on 31.03.2013 |
As
on 31.03.2012 |
|
LONG TERM
BORROWINGS |
|
|
|
Term Loan from Banks |
0.000 |
250.000 |
|
Public Deposits |
738.986 |
580.501 |
|
Deferred Sales Tax Incentive |
449.405 |
465.908 |
|
SHORT TERM
BORROWINGS |
0 |
0 |
|
Public Deposits |
28.315 |
47.423 |
|
Total |
1216.706 |
1343.832 |
|
Note on Unsecured
Long Term Borrowings. Loan from Ratnakar Bank Limited is repayable after 18 months from the date of disbursement i.e. 17th August, 2013. Public Deposit is repayable after 2 or 3 years from the date of acceptance of public deposit Interest free Deferred Sales Tax is repayable in annual installment commencing from 26th April, 2011 and ending on 30th April, 2025. Note : Cash credit, export packing credit and buyers credit facilities are part of working capital facilities availed from Consortium of Bank and are secured by hypothecation by way of first pari passu charge on all its Current Assets and by way of second pari passu charge on immovable and all movable properties (excluding Current Assets) of the Company situated at Bhandup, Nashik, Halol Plants and RPG House Mumbai. |
||
GLOBAL ECONOMIC
REVIEW
The global economy still projects a weak outlook. The recent Cyprus bailout by the European Union underlines the fear of financial crisis for most European countries. The US economy, on the other hand, is slowly recovering. However, the growth is vulnerable to headwinds. According to the International Monetary Fund (IMF), global growth declined to 3 per cent in 2012, compared to 4 per cent in 2011. The governments and central banks in USA and Europe are adopting considerable policy measures to bring stability to the relatively volatile financial market.
Declining global growth affected Indian economic development during FY 2013 as well, combined with weak foreign direct investment scenario and sluggish global trade. The service sector registered a growth of 6.6 per cent in 2012-13, as compared to the growth rate of 8.2 per cent in 2011-12. Lower growth in agricultural and industrial activities further affected the scenario. While most countries in Europe and the US will yearn for India's 5 per cent growth in FY 2013, the country still has major challenges to overcome. However, the Government's recent focus on reforms and policy implementation augurs well for the economy. The revival of private sector consumption growth aided by higher growth in agriculture, high Government spending and lower interest rates, project a modest rebound of 6.7 per cent growth in 2013-14.
GLOBAL TYRE INDUSTRY
A disturbed financial market and floating exchange rates have constrained the volumes of tyre sales, especially in advanced economies such as North America and Western Europe. In 2012, the global tyre market size approximated USD 185.8 billion, up 2.6 per cent from a year earlier. For 2013, the global industry growth estimate is no more than 0.5 per cent.
Nevertheless, declining raw material costs project a positive industry outlook in the long run. Global tyre demand is anticipated to increase steadily during 2013-2018, with annualised sales volumes set to reach over 3.6 billion units by end of 2018. Passenger car and light truck market segments, which together accounted for close to 60 per cent of the world markets' value in 2012, are predicted to fuel the global demand for tyres over the forecast period. Region-wise, the Asia Pacific nations, especially China, India and Thailand are expected to drive the demand.
INDIAN TYRE INDUSTRY
Overview
Being a capital intensive sector, the Indian tyre industry is mostly organised (excluding the bicycle tyre industry) and is dominated by cross ply tyres. Commercial Vehicle (CV), Passenger Vehicle (PV), two and three wheelers, tractor, construction equipment and other off-the-road (OTR) tyres are the various categories of the industry. CV tyre segment is the primary demand driver for the Indian market while PV tyre segment works as the key demand driver for mature markets like North America and Western Europe. The three major segments for the tyre industry are Original Equipment Manufacturers, Replacement and Exports.
Total tyre production in India has grown at a CAGR of ~10 per cent in the last decade (FY 2003 to FY 2012). In FY 2012, the Indian tyre industry grew by 5.3 per cent in terms of volumes despite economic slowdown and high input costs. FY 2012 reflected a decline in replacement demand in terms of volume, subdued Original Equipment Manufacturer (OEM) demand growth and a healthy export growth.
In FY 2013, the overall production marginally de-grew by 2-3 per cent from 125 million tonnes to around 123 million tonnes. PV segment gained over 11 per cent while Truck & Bus segment gained over 5 per cent in FY 2013. The de-growth can be attributed to the economic moderation, weak domestic demand for automobiles, further lowering tyre off-take from OEMs and preventing significant recovery in replacement demand. Imports, especially in the Truck & Bus segment, are expected to decline in 2012-13 as well, mainly due to increase in domestic radial capacities, implementation of BIS norms and depreciation in the rupee.
MANAGEMENT DISCUSSION
AND ANALYSIS
Industry composition
Replacement market
The Indian tyre industry is dominated by the replacement market which is largely dependent on the Truck & Bus segment. This segment in turn depends on commercial activity and economic growth of the country. Muted GDP growth over the last 1 (one) year stopped the replacement market from reaping the benefits of a vibrant OEM market in the 2009-2011 timeframe.
Original Equipment
Manufacturers (OEM)
Due to the economic slowdown, several automobile majors had to undertake production cuts during 2012-13. Growth for all categories except Utility Vehicles and scooters was either flat or negative. The Medium & Heavy Commercial Vehicle (MHCV) category was the worst affected with a 23 per cent decline. The scenario is not expected to be positive in the coming year either.
Exports
In 2012-13, exports in value terms grew 10 per cent year-over-year, with a healthy CAGR of around 18 per cent in the last decade. In volume terms, export has registered a growth of 8 per cent as compared to last year. Truck & Bus segment (14 per cent) and Light Commercial Vehicle (LCV) (22 per cent) were the major segments having a higher exports share. Indian tyres are exported to more than 100 (hundred) countries and primarily to Latin America, Middle East, South Asia and Far East.
Slowdown in Exports
During FY 2013, overall automobile exports registered de-growth of 1.34 per cent compared to the same period last year. Passenger Vehicle exports grew by 9.02 per cent, while the other segments like CV, three wheelers and two wheelers fell by 13.35 per cent, 16.22 per cent and 0.72 per cent respectively.
BUSINESS OVERVIEW
CEAT Limited offers a wide array of tyres, which includes heavy duty Truck & Bus, LCV, PV, tractor, trailer, scooter, motorcycle, auto-rickshaw and OTR product categories.
PERFORMANCE OVERVIEW
Operational overview
Despite the economic headwinds and industry challenges, CEAT continuously invested in every aspect of its business. The future-focused strategies, investment and capability-building activities yielded significant results in FY 2013. The Halol plant, which made the Company a significant player in the radial tyre industry, touched a capacity of 115 tonnes per day. The performance of the OEM segment was particularly impressive with increased supply to several new OEMs.
During the year, the Company has also entered into a Joint Venture (70:30) with A. K. Khan & Company Limited (AKK), one of the leading business houses of Bangladesh, to set up a tyre manufacturing facility in Bangladesh. The Company has already finalised the blue print of the plant. The plant will start catering to the domestic demand of Bangladesh and neighbouring countries from early 2015. On the other hand, Associated CEAT Holdings Company Private Limited (ACHL) - the Sri Lanka Joint Venture of the Company continued to enjoy overall market leadership in Sri Lanka.
New product launches
Over 70 new products were launched in the year 2012-13 across all product categories.
Most notably, CEAT has launched 'CZAR', a premium range for Utility Vehicle tyres. Low noise and less wear and tear are the primary features of this product range. These tyres are also puncture resistant and enhance off-road stability that ensures a smoother ride. The television advertising campaign for 'CZAR' was launched earlier in the year and received a good response from the market.
CEAT PRO
In order to spread awareness among truck owners about the best business practices to improve operational efficiency, CEAT actively organises educational sessions known as CEAT PRO. Since the commencement of the initiative in June 2009, CEAT Pro has successfully conducted 99 seminars with expert speakers on lubes, auto finance and insurance, vehicle AMCs, telematics, and other related topics for better customer satisfaction, resulting in higher profit margins.
CEAT PRO is, the first of its kind programme for fleet owners, to spread awareness regarding the best industry practices to enhance operational efficiency. In FY 2013, it has conducted 26 seminars to educate fleet owners on new technological advancements for better information access, advanced concepts of brand building and customer service. Key personalities from logistics, finance, marketing, human resource management, commercial vehicle OEMs and other related sectors also addressed the major concerns of the fleet owners.
CEATSHOPPE
CEAT Shoppe is a 'one stop tyre shop' exclusive retail channel that positively contributed to the Company's sales, especially in the passenger tyre segment.
During the year, the Company has successfully added more than 60 Shoppes in the new look. By FY 2014, CEAT plans to increase the number of Shoppes to 200, concentrating on towns with population of 5 to 10 lacs.
OUTLOOK
According to latest estimates by the Society of Indian Automobile Manufacturers (SIAM), while Passenger Car and UV segments are expected to grow at 5-7 per cent and 11-13 per cent respectively during 2013-14, MHCV and LCV segments are expected to grow at a rate 1-3 per cent and 10-12 per cent respectively. The two and three wheeler segments are expected to grow at 6-8 per cent and 3-5 per cent respectively in this period. This is expected to improve demand for tyres in the domestic market by approximately 5 per cent during the current year.
CEAT is well positioned to seize the market opportunities, leveraging its key strengths - state-of-the-art products, diverse offerings, improved operational efficiency, extended network across the country and access to international markets and the expertise of its management team.
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured (Rs. in Millions) |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10348599 |
28/03/2012 |
700.000 |
ICICI BANK LIMITED |
LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, Gujarat - 390015, INDIA |
B37260502 |
|
2 |
10338487 |
10/02/2012 |
500.000 |
Bank of India |
Mumbai Large Corporate Branch, Bank of India Bldg, |
B33396714 |
|
3 |
10290604 |
26/05/2011 |
1397.500 |
Corporation Bank |
Bharat House, No. 104, Ground Floor, M.S .Marg, Mumbai, Maharashtra - 400023, INDIA |
B14418354 |
|
4 |
10261396 |
24/12/2010 |
500.000 |
Bank of India |
Mumbai Large Corporate Branch, Bank of India Building, 4th Floor, 70-80, Mahatma Gandhi Road,, Mumbai, Maharashtra - 400001, INDIA |
B03278157 |
|
5 |
10247473 |
21/10/2010 |
1164.600 |
ICICI BANK LIMITED |
LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, Gujarat - 390015, INDIA |
A96947650 |
|
6 |
10231597 |
21/06/2010 |
500.000 |
Bank of Baroda |
Industrial Finance Branch, Baroda House, Cawasjee Patel
Street, Fort, Mumbai, Maharashtra - 400001, |
A89904403 |
|
7 |
10230552 |
21/06/2010 |
1000.000 |
Export-Import Bank of India |
Centre One Building, Floor 21, World Trade Centre |
A89559595 |
|
8 |
10230550 |
21/06/2010 |
1300.000 |
ICICI BANK LIMITED |
LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, Gujarat - 390015, INDIA |
A89552947 |
|
9 |
10212609 |
21/06/2010 * |
1000.000 |
Bank of India |
Mumbai Large Corporate Branch, Bank of India Building, 4th Floor, 70-80, Mahatma Gandhi Road, Mumbai, Maharashtra - 400001, INDIA |
A89770556 |
|
10 |
10179171 |
21/06/2010 * |
1100.000 |
IDBI Bank Limited |
IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA |
A89762595 |
* Date of charge modification
FIXED ASSETS:
· Land (Freehold / Leasehold)
· Building
· Plant and Equipments
· Furniture and fixture
· Vehicles
· Office Equipments
AS PER WEBSITE DETAILS:
PRESS RELEASE:
CEAT FORMS JV WITH
BANGLADESH CO; TO INVEST USD 67 MILLION
Jan 27, 2013, 10.42 AM IST
RPG Group's tyre-making arm Ceat today announced formation of a joint venture company with the Bangladesh-based AK Khan and Company to set up a manufacturing facility in the neighbouring country.
The facility, which will come up at the investment of USD 67 million, is expected to be functional by December 2014, Ceat said in a statement. The 110-tonne per day facility will roll out tyres for trucks, LCVs and 2/3 wheelers for the Bangladeshi market.
CEAT LIMITED AND AK
KHAN AND COMPANY LIMITED SIGN A JOINT VENTURE AGREEMENT TO MANUFACTURE
AUTOMOTIVE TYRES IN BANGLADESH TOTAL INVESTMENT OF 67 MILLION DOLLARS
• One of the largest
manufacturing investments in Bangladesh by an Indian company
• First large scale
Tyre manufacturing plant in Bangladesh
• Plant expected to
come into production by end of 2014
Mumbai, 25th January 2013: CEAT Limited, an RPG Enterprise company and one of India’s leading tyre manufacturers and A K Khan and Company Limited, one of Bangladesh’s most reputed business houses, have signed an agreement to form a joint venture to set up a Tyre manufacturing facility in Bangladesh. The joint venture forms part of the long term strategy for both the Partners to have a presence in the growing tyre market in Bangladesh. Under the proposed Joint Venture, CEAT Limited will hold a 70% shareholding and A K Khan and Company Limited. will hold 30%.
As per the joint venture agreement, CEAT Limited will provide technical and business expertise and manage the JV company operations while A K Khan and Company Limited will bring in their vast knowledge of Bangladesh market besides providing the strength of their goodwill and local presence.
Speaking on the occasion, Mr. Anant Goenka, Managing Director, CEAT Limited said, “We are pleased to partner with A K Khan and Company Limited, one of the most reputed business conglomerates in Bangladesh. This strategic partnership will enable us to establish a leadership presence in the large tyre market of Bangladesh”
“The CEAT manufacturing facility at its full capacity will be able to cater to majority of the tyre requirement of Bangladesh. With this plant, our aim is to manufacture the high quality products using the best of local skills while contributing to the development of the local Bangladesh economy”, added Mr. Goenka.
Mr. Salahuddin Kasem Khan, Managing Director, A K Khan and Co, said, “Besides catering to the growing local market, the plant will earn valuable foreign exchange for the country by exporting approximately 20% of its output to the region and rest of the world”
The Joint Venture plant will manufacture bias tyres in truck, Light Commercial Vehicle, and 2/3 wheeler segments for the local Bangladesh market. The company plans an investment of US$ 67 million for capacity of 110 metric tonnes per day in phases.
About CEAT Limited:
CEAT Limited, the flagship company of RPG
Enterprises, was established in 1958. Today, it is one of India’s leading tyre
manufacturers and has a strong presence in both domestic and international
markets. The company manufactures over 10 million tyres every year and enjoys a
major market share in the light truck and truck tyre market. CEAT tubes and
flaps are renowned for their superior quality and durability. CEAT Limited
offers 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.About RPG Enterprises:
RPG Enterprises, established in 1979, is one
of India's fastest growing business groups with turnover over Rs. 15,000 crore.
The group has more than fifteen companies managing diverse business interests
in the areas of Tyre, Infrastructure, IT and Specialty.
About A K Khan and Company Limited:
A. K. Khan and Co Limited is one of the oldest
and most reputed business conglomerates in Bangladesh, operating since 1945.
The Group engages in business through joint venture with renowned Multinational
Companies (MNCs) like Coats Viyella Group (UK) and Pen Fabrics Malaysia
(subsidiary of Toray Industries Inc of Japan) in Textiles, Telekom Malaysia as
AKTEL (erstwhile), Community Water Systems (CWS) project to tackle the safe
drinking water crisis in Bangladesh in cooperation with WaterHealth
International Inc.USA, HFC, Maruha Nichiro Corporation of Japan in deep sea
fishing and export Bangla Fisheries. Furthermore, the group has its own
businesses in Distributions, Telecom, IT (AKNET), (ICT-Internal Container
Terminal), Securities, Logistics and others. A. K. Khan and Co Limited is also
planning to expand its business in Hospitality sector by setting up a 5 star
Hotel and high-rise corporate Tower in Chittagong and Special Economic Zone
(SEZ) in Rupaganj, Dhaka.
CEAT LIMITED BRINGS
‘CEAT-PRO KNOWLEDGE SERIES’ TO SHIMOGA
· A Pan-India series looking to address issues concerning the Indian truck transportation market
· A platform of partnership, a circle of trust between CEAT, participating partners and India’s top fleet companies
Shimoga, September 25, 2012: Indian tyre major
CEAT Limited, an RPG enterprise, organized a knowledge platform – ‘CEAT PRO’
for fleet owners in Shimoga to help them better their business and reduce
operation costs. This is an interactive platform that gives fleet owners access
to best practices and ideas across diverse areas of the Indian trucking
industry.
As part of its fleet excellence program CEAT
PRO knowledge series aims to create a common platform for sharing information
limited resources and thus helping fleets compete on a flatter turf. The
panelists will speak about Right selection of Lubricants, Do’s and Dont’s of
Finance, Benefits of AMC and Radialization and its benefits.
Speaking on this occasion, Vinod Kumar, Vice
President - Marketing, CEAT Limited said, “Though the Indian transportation
industry is booming it lacks a common platform to engage customers and help
them build best practices. At CEAT, we believe in partnering with our customers
and the automobile industry to gain value and optimum growth, thus “CEAT PRO”
was launched.”
He added, “CEAT – PRO is not a selling but a
knowledge plank, to share ideas and best practices. CEAT will engage the
industry experts and help create value for the end customer by assisting him with
new technology, information and best practices.”
The Indian truck transportation market is
approximately Rs 38,000 crore, of which over 80% of the market lies in the
unorganised sector. Despite recent developments, the overall awareness of new
technologies and industry best practices is quite low. Penetration of new age
systems such as the Fleet Management software or the GPS systems is quite
dismal and mostly restricted to only a select few big transporters.
The first step in this direction is the CEAT
‘PRO’ knowledge seminar series. Where top industry experts will share their
views on a variety of topics, thus helping fleet owners.
As a further step, CEAT has also started
India’s First and only Transportation awards, India Road Transportation Awards
(IRTA). This award is the next step in CEAT’s efforts to take forward the
knowledge platform and to start recognizing the achievers in the transportation
sector. It is a platform to recognize the Innovators who have transformed the
Transportation Industry. The third edition of National Awards was held this
year on July 20, 2012.
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 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 proceedingfor 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.58.91 |
|
|
1 |
Rs.90.68 |
|
Euro |
1 |
Rs.78.22 |
INFORMATION DETAILS
|
Information Gathered
by : |
PLK |
|
|
|
|
Report Prepared
by : |
RAJ |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
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 |
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 |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
61 |
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.