MIRA
INFORM REPORT
|
Report Date : |
07.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
CEAT LIMITED |
|
|
|
|
Registered
Office : |
463, Dr. Annie Besant Road, Worli, Mumbai – 400 030, Maharashtra |
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|
Country : |
India |
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|
|
|
Financials (as
on) : |
31.03.2012 |
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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 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMC10660G MUMC11397B |
|
|
|
|
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 (51) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
|
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 good track record. Even though the
company has recorded an increase in its sales turnover, there appears sharp
dip in the profitability during 2012. The external borrowings of the company
appear to be increasing over years. 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.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to
become a major exporter of information technology services and software
workers. In 2010, the Indian economy rebounded robustly from the global
financial crisis - in large part because of strong domestic demand - and growth
exceeded 8% year-on-year in real terms. However, India's economic growth in
2011 slowed because of persistently high inflation and interest rates and
little progress on economic reforms. High international crude prices have
exacerbated the government's fuel subsidy expenditures contributing to a higher
fiscal deficit, and a worsening current account deficit. Little economic reform
took place in 2011 largely due to corruption scandals that have slowed legislative
work. India's medium-term growth outlook is positive due to a young population
and corresponding low dependency ratio, healthy savings and investment rates,
and increasing integration into the global economy. India has many long-term
challenges that it has not yet fully addressed, including widespread poverty,
inadequate physical and social infrastructure, limited non-agricultural
employment opportunities, scarce access to quality basic and higher education,
and accommodating rural-to-urban migration.
|
Source
: CIA |
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.
LOCATIONS
|
Registered Office : |
463, Dr. Annie Besant Road, Worli, Mumbai – 400 030, 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 |
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|
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|
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 31.03.2012)
|
Name : |
Mr. R. P. Goenka |
|
Designation : |
Chairman |
|
|
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|
Name : |
Mr. H. V. Goenka |
|
Designation : |
Vice Chairman |
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|
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|
Name : |
Mr. Paras K.
Chowdhary |
|
Designation : |
Whole Time
Director and Chief Management Advisor |
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|
|
|
Name : |
Mr. Mr. Anant
Vardhan Goenka |
|
Designation : |
Managing director
|
|
Qualification: |
MBA., B.Sc. |
|
|
|
|
Name : |
Mr. Vinay Bansal |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. A. C. Choksey |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. S. Doreswamy |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Mahesh S.
Gupta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Haigreve
Khaitan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Bansi S.
Mehta |
|
Designation : |
Director |
|
|
|
|
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 31.12.2012
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
|
|
|
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
148117 |
0.43 |
|
|
16172629 |
47.23 |
|
|
16320746 |
47.66 |
|
|
|
|
|
|
1782348 |
5.20 |
|
|
1782348 |
5.20 |
|
Total shareholding of Promoter and Promoter Group (A) |
18103094 |
52.87 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1489140 |
4.35 |
|
|
34148 |
0.10 |
|
|
67 |
0.00 |
|
|
2227935 |
6.51 |
|
|
510555 |
1.49 |
|
|
4261845 |
12.45 |
|
|
|
|
|
|
2469412 |
7.21 |
|
|
|
|
|
|
7963613 |
23.26 |
|
|
1427714 |
4.17 |
|
|
17856 |
0.05 |
|
|
3766 |
0.01 |
|
|
14053 |
0.04 |
|
|
37 |
0.00 |
|
|
11878595 |
34.69 |
|
Total Public shareholding (B) |
16140440 |
47.13 |
|
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 |
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 · Axis Bank Limited |
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Facilities : |
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Banking
Relations : |
-- |
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|
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Auditors : |
|
|
Name : |
N. M. Raiji and Company Chartered
Accountants |
|
Address : |
|
|
Tel No.: |
91-22-22870068 |
|
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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|
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Related Parties : |
· Associated CEAT Holdings Company (Private) Limited (Wholly owned Subsidiary Company) · CEAT-Kelani Associated Holdings Company (Private) Limited · Associated CEAT (Private) Limited · CEAT-Kelani International Tyres (Private) Limited · CEAT Kelani Radials Limited · Rado Tyres Limited (Associate Company) |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorized 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 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:
|
Particulars |
31.03.2012 |
|
|
|
Equity Shares |
|
|
|
Numbers |
In Rs. Millions |
|
a) Shares outstanding at the beginning of the year |
34243534 |
342.435 |
|
Shares Issued during the year |
-- |
-- |
|
Shares bought back during the year |
-- |
-- |
|
Shares outstanding at the end of the year |
34243534 |
342.435 |
b) 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. A member shall not have any right to vote whilst any call or other sum shall be due and payable to the Company in respect of any of the shares of such member. All equity shares of the Company rank pari passu in all respects including the right to dividend. The dividend is recommended by the Board of Directors and declared by 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, subject to the rights of holders of shares issued upon special terms and conditions, the holders of equity shares shall be entitled to receive remaining assets, if any, in proportion to the number of shares held at the time of commencement of winding–up.
The Shareholders have all other rights as available to Equity Shareholders as per the provisions of the companies Act, 1956, read together with the Memorandum of Association and Articles of Association of the Company, as applicable.
c) The Company does not have any holding company or ultimate holding company. Promoter shareholding in the Company including persons acting in concert with the promoters as on March 31, 2012 is 1,78,43,962 equity shares i.e. 52.11% of the equity share capital of the Company. (Previous year March 31, 2011, 1,67,23,578 ie. 48.84%).
d) Shares in the Company held by each shareholder holding more than 5% (As certified by the Management on which Auditors have relied).
|
Particulars |
31.03.2012 |
|
|
|
No. of Shares Held |
% of Holding |
|
Instant Holdings Limited |
50,09,185 |
14.63 |
|
Goodhope Sales Private Limited |
41,55,743 |
12.14 |
|
Swallow Associates Limited |
44,84,624 |
13.10 |
|
Societe Ceat D Investissementen Asie S A |
17,82,348 |
5.20 |
|
RPG Cellular Investments and Holdings Private Limited |
-- |
-- |
e) Money received against Convertible warrants:
The Company has on March 12, 2012 allotted 17,12,176 Warrants of face value Rs.10 each to Instant Holdings Limited, an entity belonging to the Promoter Group of Companies at a price of Rs.85.03 per Warrant on a preferential basis. The Company has received the 25% of the price of the Warrant i.e Rs.21.26 per Warrant at the time of allotment. The Warrants are convertible into an equivalent number of equity shares at the option of the allottee within a period of 18 months from the date of allotment i.e. upto September 11, 2013.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
342.435 |
342.435 |
342.435 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Convertible Warrants |
36.397 |
60.542 |
0.000 |
|
|
4] Reserves & Surplus |
6184.604 |
6088.475 |
5944.710 |
|
|
5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
6563.436 |
6491.452 |
6287.145 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
9364.273 |
7864.149 |
3120.511 |
|
|
2] Unsecured Loans |
1343.832 |
1174.276 |
3417.944 |
|
|
TOTAL BORROWING |
10708.105 |
9038.425 |
6538.455 |
|
|
DEFERRED TAX LIABILITIES |
224.428 |
241.054 |
201.683 |
|
|
|
|
|
|
|
|
TOTAL |
17495.969 |
15770.931 |
13027.283 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
15240.843 |
13622.666 |
7689.278 |
|
|
Capital work-in-progress |
134.159 |
1061.820 |
2338.380 |
|
|
|
|
|
|
|
|
INVESTMENT |
744.828 |
865.298 |
585.077 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
5796.059
|
5674.631
|
4060.757
|
|
|
Sundry Debtors |
6125.977
|
4807.193
|
3763.161
|
|
|
Cash & Bank Balances |
334.286
|
478.807
|
1399.891
|
|
|
Other Current Assets |
57.975
|
22.419
|
0.000
|
|
|
Loans & Advances |
1451.366
|
1454.162
|
1101.026
|
|
Total
Current Assets |
13765.663
|
12437.212
|
10324.835
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
6569.398
|
7464.022
|
2285.314
|
|
|
Other Current Liabilities |
5585.723
|
4480.874
|
5261.486
|
|
|
Provisions |
234.403
|
271.169
|
363.582
|
|
Total
Current Liabilities |
12389.524
|
12216.065
|
7910.382
|
|
|
Net Current Assets |
1376.139
|
221.147
|
2414.548
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
17495.969 |
15770.931 |
13027.283 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
44720.206 |
34987.718 |
28074.760 |
|
|
|
Other Income |
200.064 |
284.357 |
421.352 |
|
|
|
TOTAL (A) |
44920.270 |
35272.075 |
28496.112 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
32583.446 |
26487.291 |
|
|
|
|
Purchases of Stock-in-trade |
516.857 |
846.025 |
|
|
|
|
Changes in Inventories of finished goods, work-in-progress and Stock-in-trade |
258.996 |
(1398.233) |
|
|
|
|
Employee Benefits Expense |
2326.956 |
2040.809 |
|
|
|
|
Other Expenses |
6478.238 |
5540.298 |
|
|
|
|
Exceptional Item - Voluntary Retirement Compensation |
31.564 |
78.223 |
|
|
|
|
TOTAL (B) |
42196.057 |
33594.413 |
25269.004 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2724.213 |
1677.662 |
3227.108 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1921.615 |
1003.585 |
568.314 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
802.598 |
674.077 |
2658.794 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
704.741 |
341.657 |
268.829 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
97.857 |
332.420 |
2389.965 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
22.472 |
109.586 |
779.550 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
75.385 |
222.834 |
1610.415 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2499.868 |
2373.102 |
1084.440 |
|
|
|
|
|
|
|
|
|
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 |
NA |
2499.868 |
2373.102 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Sales calculated on FOB basis |
9927.588 |
6147.067 |
|
|
|
|
Royalty |
36.264 |
27.162 |
|
|
|
|
Dividend |
64.641 |
72.026 |
|
|
|
|
Technical Development Charges |
4.500 |
0.00 |
|
|
|
TOTAL EXPORTS |
10032.993 |
6246.255 |
4802.450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
13874.172 |
9342.070 |
5949.211 |
|
|
|
Components & Spares |
27.913 |
18.250 |
19.734 |
|
|
|
Capital Goods |
770.488 |
2289.103 |
60.264 |
|
|
|
Traded Goods |
137.452 |
487.942 |
584.347 |
|
|
TOTAL IMPORTS |
14810.025 |
12137.365 |
6613.556 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
2.20 |
6.51 |
47.03 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
31.09.2012 |
31.12.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
11891.400 |
11731.500 |
12016.700 |
|
Total Expenditure |
10822.200 |
10949.200 |
10998.900 |
|
PBIDT (Excl OI) |
1069.200 |
782.300 |
1017.800 |
|
Other Income |
34.400 |
89.600 |
33.700 |
|
Operating Profit |
1103.600 |
871.900 |
1051.500 |
|
Interest |
530.300 |
495.400 |
465.100 |
|
Exceptional Items |
0.000 |
(140.400) |
(136.600) |
|
PBDT |
573.300 |
236.100 |
449.800 |
|
Depreciation |
192.200 |
195.200 |
199.200 |
|
Profit Before Tax |
381.100 |
40.900 |
250.600 |
|
Tax |
123.600 |
13.400 |
81.300 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
257.500 |
27.500 |
169.300 |
|
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 |
257.500 |
27.500 |
169.300 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
0.17
|
0.63
|
5.66
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.22
|
0.95
|
8.52
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.34
|
1.28
|
13.27
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.01
|
0.05
|
0.38
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.52
|
3.27
|
2.30
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.11
|
1.02
|
1.31
|
LOCAL AGENCY FURTHER INFORMATION
|
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 |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
No |
|
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 |
UNSECURED LOANS:
|
Unsecured Loans |
31.03.2012 |
31.03.2011 |
|
|
(Rs. In Millions) |
|
|
TERM LOANS |
|
|
|
- From Bank (Note A) |
250.000 |
0.000 |
|
- Deferred payment liabilities - Sales Tax Incentive (Note B) |
465.908 |
474.870 |
|
- Public Deposits |
627.924 |
699.406 |
|
TOTAL
|
1343.832 |
1174.276 |
UNSECURED LOANS
(NOTES)
A) Loan availed from Ratnakar Bank Limited of Rs.250.000 Millions (Previous year Rs.Nil) Repayment after 18 months from the date of disbursement i.e. August 18, 2013.
B) Interest free Deferred Sales Tax incentive repayment installments
commences from April 26, 2011 and end on April 30, 2025.
CEAT’S PERFORMANCE
The performance of the Company for the year followed similar trends as
that of the industry in general.
While the Company registered a turnover of Rs.44396.000 Millions during
the year registering a healthy growth of 28 per cent over Rs.34683.000 Millions
in the previous year, its profit was adversely impacted in the first half due
to steep rise in the prices of key raw materials particularly of Natural Rubber
and crude-based raw materials and in the third quarter due to nearly a
month-long disruption in production in Nasik factory on account of labour
agitation. Finance cost, which increased significantly due to upward movement
in interest rates and additional interest charge on funding of the Halol Plant
and increased working capital requirement, also reduced the profit margin of
the Company. However, with the help of a much improved performance for the
fourth quarter of the year both in terms of revenue of Rs.12148.000 Millions
and net profit of Rs.415.000 Millions, the Company has been able to register a
net profit of Rs.75.000 Millions against the net profit of Rs.223.000 Millions
in the previous year.
The Company registered significant success in the Original Equipment
Manufacturers (OEM) market. It not only gained acceptance with several new OEM,
but also increased its share of business with the existing OEM partners. As a
result, the Company’s share in the OEM market has increased to 8.5 per cent
from 7 per cent in the previous year, aided by impressive growth in the
two-wheeler segment. Further, CEAT has also consolidated its position in the
export market during the year and registered a turnover of Rs.10020.000
Millions, a growth of 62 per cent over the previous year.
The acquisition of the “CEAT” brand from Pirelli and C. S.p.A, Italy has
allowed the Company’s entry into newer markets, especially Latin America and
Europe. The Company has already started establishing its distributor network in
these new territories and expects higher revenues in the future. Truck and bus
radial segment registered good growth as compared to truck and bus bias
segment, which has de-grown during the year under review. In the passenger car
segment, CEAT not only outperformed the industry, but also increased its market
share. CEAT has also grown in the two-wheeler segment by providing a special
thrust on distribution and by running a successful advertising campaign for
motorcycle tyres. Premium range of CEAT products in truck and GRIPP range in
motorcycles have been received well by customers.
FUTURE OUTLOOK
With passenger vehicles sales expected to grow at an annual rate of 15
per cent and commercial vehicles at 20 per cent upto FY 2015, the future augurs
well for the industry. Increasing radialisation in the commercial vehicle
segment and longer distances now travelled by passenger cars and two-wheelers,
will translate into higher demand in the replacement segment. The Indian tyre
industry is expected to grow at around 14 per cent during FY 2013. Further,
macro issues of the Indian economy, particularly weakening Rupee and high
interest rates, currently the areas of concern for tyre industry, are expected
to improve during the course of the year ahead.
With the stable forecast of raw material prices and overall economic
situation of the country, the Company expects a better year ahead.
The Company has embarked on a new product development process led by a
Quality Function Deployment
(QFD) system with very strong focus on meeting stated and unstated needs
of consumers.
The Company is now better poised to accept new challenges and take full
advantage of favourable market conditions. The Company expects to increase its
market share in all key segments in order to sustain its growth in coming
years.
CEAT KELANI
VENTURE (JOINT VENTURE IN SRI LANKA)
Associated CEAT Holdings Company (Private) Limited (ACHL), the Company’s
investment arm in Sri Lanka, operates 3 manufacturing plants through its joint
venture company CEAT Kelani Holdings Company (Private) Limited.
During the year ACHL has registered a revenue of LKR 4357.410 million
(Rs.1847.010 million) as compared to LKR 3790.830 million (Rs.1542.500 million)
in 2010-11, a growth of 15 per cent. Profit after tax has grown by 13.4 per
cent to LKR 316.200 million (Rs.134.120 million) as compared to LKR 277.900
million (Rs.112.080 million) in 2010-11. In line with its performance, ACHL has
been consistently paying the dividend. The dividend received by the Company for
FY 2011-12 is Rs.6464.100 million.
The joint venture continues to enjoy dominant market share in all
categories of tyres in Sri Lanka.
GLOBAL ECONOMIC
REVIEW
The financial year 2011-12 was a challenging year for the global
economy. In Europe the sovereign debt burdens of some nations and the
apprehension that the contagion may spread to other countries across the wider
Eurozone triggered widespread loss of market confidence. Governments and
Central banks have moved with alacrity to stabilise the situation. However, the
situation still remains fragile. The US economy, on the other hand, witnessed
slow recovery and concerns arose over the capacity of the US government to
effectively reduce its debt burden. The emerging economies have, however, put
up a better show as compared to their developed counterparts.
Impacted by global headwinds, India’s growth estimates moderated to 6.9
per cent in 2011-12. Besides, India had its own set of challenges to grapple
with like slowdown in infrastructure creation, persistent inflation, monetary
tightening, weakening rupee and policy inertia etc. However, the long-term
prospects continue to inspire optimism. It is expected that GDP growth may
touch 7.6 per cent in FY 2013 and 8.6 per cent in FY 2014, on the strength of
policy reforms and focus on inclusive growth.
GLOBAL TYRE
INDUSTRY
The global tyre demand is expected to touch 3.3 billion units by 2015,
to register a 4.7 per cent annual growth. In value terms, it is expected to
touch USD 220 billion, with an annual growth of 6.5 per cent. The Asia Pacific
region, which is by far the largest market for tyres, also projects significant
demand growth in the coming years. The tyre markets in North America and
Western Europe are expected to perform better as compared to the declines
recorded during the 2005 to 2010 period. With increased levels of income in the
emerging economies, the global demand for vehicles is expected to rise further,
thus leading to an accelerated tyre demand.
INDIAN TYRE
INDUSTRY
OVERVIEW
India’s tyre industry is primarily organised (barring the bicycle tyre
industry) and dominated by cross ply tyres. Commercial Vehicle (CV) tyres
remain the major contributor to overall size of the industry, followed by Passenger
Vehicle (PV) tyres. Tyres for two and three wheelers, tractors, construction
equipment and Off-The-Road (OTR) tyres and export constitute the remaining
market share.
In 2011-12, the size of the Indian tyre industry is estimated to be
around Rs.389 billion, and is expected to reach Rs.443 billion by 2012-13,
registering a growth of 14 per cent.
SNAPSHOT OF THE
INDIAN TYRE INDUSTRY
Rs.389 billion – Total turnover
Rs.1.488 Millions MT – Tyre Production (Tonnage)
Tyre Production – All Categories (Nos.) - 1,192 lacs
Rs.30000.000 Millions – Exports
39 – Number of companies
Top 10 companies – Account for over 95 per cent of the total production
INDUSTRY
COMPOSITION
REPLACEMENT MARKET
The replacement market dominates the Indian tyre industry. This segment
is margin accretive, compared to other segments. In fiscal 2011-12, the
replacement market contributed to 63 per cent of the total industry turnover,
visa- vis 71 per cent in the previous fiscal.
ORIGINAL EQUIPMENT
MANUFACTURERS (OEM)
The OEM segment contributed to 26 per cent of the total turnover in
2011-12 and is expected to register a modest growth of 11-13 per cent in
2012-13.
EXPORTS
In 2011-12, the industry turnover from the exports market increased phenomenally,
capturing 11 per cent of the total tyre sales. Export of tyres is expected to
witness a higher CAGR of 12-14 per cent over the next five years i.e. during
the 2012-2017 period, as compared to a growth of 8.9 per cent registered during
the last five years. The Indian tyres are exported to more than 50 countries,
mainly in Asia, Africa and the Middle East. CV tyres dominate the export pie,
for which the primary export destinations are Latin America, UAE, Bangladesh,
Iran, Philippines and Vietnam.
KEY RAW MATERIAL
PRICE MOVEMENT
Raw material cost accounts for approximately 70 per cent of the
industry’s turnover with Natural Rubber being the key raw material. Although
India is the fourth largest Natural Rubber producer in the world, there is a
significant demandsupply gap in the country. This leads to volatile price
movement impacting margins and overall profitability of the entire industry.
The first half of 2011 witnessed all-timehigh levels of Natural Rubber prices.
However, the prices stabilised in the later part of the current financial year
owing to lower demand from the automobile segment.
RADIALISATION IN
INDIA
After the initial challenges of acceptance, price sensitivity and
suitability on Indian roads, the concept of radialisation of tyres for Medium
and Heavy Commercial Vehicles (MHCV) is finally gathering momentum. While, the
radialisation levels for PV segment have crossed 98 per cent, radialisation in
the MHCV segment is currently only approximately 15 per cent. The growing
cost-benefit ratio, enhanced awareness and significant road development
activities will drive radialisation growth in India.
BUSINESS OVERVIEW
CEAT offers a wide array of tyres, which includes heavy duty T and B, LCVs,
PVs, tractors, trailers, scooters, motorcycles, auto-rickshaws and OTR such as
earthmovers and forklifts etc.
OPERATIONAL
OVERVIEW
To provide enhanced quality and customer experience, the Company
continuously enriches its range of products and services. In the previous
fiscal, the commencement of production at the Halol plant was an important
milestone in CEAT’s history, which made the Company a significant player in the
Indian radial tyre industry. It has also performed extremely well in the export
market, crossing the Rs.10000.000 Millions mark in sales with the help of
deeper penetration in South America, the Middle East and South East Asia
markets. The Company has also concentrated on its Research and Development that
resulted in the introduction of a number of new products.
NEW PRODUCT
LAUNCHES
CEAT PRO
CEAT actively organises educational sessions known as CEAT PRO to spread
awareness among truck owners about the best business practices to improve
operational efficiency. The Company has conducted 85 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.
FINANCIAL OVERVIEW
During the year CEAT registered a turnover of Rs.44396.000 Millions, a
growth of 28 per cent over Rs.34683.000 Millions in the previous year. However,
due to a steep increase in raw material cost, particularly during the first two
quarters of the year coupled with increased finance cost severely impacted the
profit margins of the Company.
As result of this, net profit of the Company has declined to Rs.75.000
Millions from Rs.222.800 Millions in the previous year.
OUTLOOK
The following strategies demonstrate CEAT’s strong focus for growth, amidst
the global economic turmoil:
• Improving product mix to expand profitability
• Growing focus in motor cycle tyres segment
• Enhanced focus in the PV segment and replacement market, as the
segments provide higher margins, compared to the OEM market
• Sustain relationships with OEM customers
• Enhancing distribution channels and increased number of CEAT Shoppes
• Robust marketing strategies to enhance brand awareness and penetrate
the T and B radial tyre market
• Shift towards radial tyres
CONTINGENT LIABILITY:
(Rs.
In Millions)
|
Particulars
|
31.03.2012 |
31.03.2011 |
|
|
|
|
|
a) Direct and Indirect Taxation Matters |
|
|
|
-
Income
Tax |
164.069 |
168.262 |
|
-
Wealth
Tax |
0.673 |
0.673 |
|
-
Excise
Duty / Service Tax |
456.043 |
433.438 |
|
-
Value
Added Tax / Central Sales Tax |
441.236 |
441.777 |
|
b) Disputed demands of Octroi Duty |
22.210 |
17.077 |
|
c) Bills discounted with Banks |
181.211 |
275.204 |
|
d) Corporate Guarantees given on behalf of
others |
|
|
|
-
Covered by indemnity undertakings from RPG Enterprises Limited |
255.000 |
255.000 |
|
e) The Company has given Indemnity in respect
of Lease transactions entered into with ICICI Bank Ltd., liability for which
is indeterminable |
0.000 |
0.000 |
|
f) Export obligation under Export Promotion
Council Guarantee Scheme |
3124.724 |
3960.789 |
STATEMENT
OF STANDALONE UNAUDITED RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31ST
DECEMBER, 2012
[Rs. in millions]
|
PARTICULARS |
Standalone |
|||
|
Quarter Ended |
Nine
Months Ended |
|||
|
31.12.2012 (Unaudited) |
30.09.2012 (Unaudited) |
31.12.2012 (Unaudited) |
||
|
1 |
a) Sales Gross Sales Less : Excise duty on Sales |
13097.400 1151.600 |
12783.800
1136.600 |
38832.200 3444.900 |
|
|
Net Sales / Revenues from Operations |
14945.800 |
11647.200 |
35387.300 |
|
|
b)
Other Operating Income |
70.900 |
89.600 |
236.100 |
|
|
Total Income from operations (net) |
12016.700 |
11736.800 |
35623.400 |
|
2 |
Expenditure a) Cost of materials consumed b) Purchases of stock-in-trade c) Changes in
inventories of finished goods d) Employee benefits expenses e) Depreciation and amortisation expenses f) Other expenditure |
8201.600 227.600 (169.000) 735.100 199.200 2003.600 |
8339.400 153.300 (197.500) 699.000
195.200 1942.300 |
25168.200 519.300 (739.600) 2055.000 586.600 5770.300 |
|
|
Total expenses |
11198.100 |
11149.700 |
33359.800 |
|
3 |
Profit/( Loss)
from operations before Other Income, finance cost & exceptional Items
(1-2) |
818.600 |
587.100 |
2263.600 |
|
4 |
Other Income |
33.700 |
89.600 |
176.800 |
|
5 |
Profit/(Loss)
from ordinary activities before finance costs and exceptional Items (3+4) |
852.300 |
676.700 |
2440.400 |
|
6 |
Finance costs |
465.100 |
495.400 |
1490.700 |
|
7 |
Profit/(Loss)
from ordinary activities after finance costs but before exceptional Items
(5-6) |
387.200 |
181.300 |
949.700 |
|
8 |
Exceptional Item (Refer note no.2(a)
and 2(b)) |
136.600 |
140.400 |
277.000 |
|
9 |
Profit/( Loss) before tax (7+8) |
250.600 |
40.900 |
672.700 |
|
10 |
Tax Expenses |
81.300 |
13.400 |
218.300 |
|
11 |
Net Profit/( Loss) from ordinary activities after tax
(9-10) |
169.300 |
27.500 |
454.400 |
|
12 |
Extraordinary Items (Net of Tax
Expenses Rs. Nil) |
- |
- |
- |
|
13 |
Net Profit / (Loss) for the period (9-10) |
169.300 |
27.500 |
454.400 |
|
14 |
Paid-up equity share capital (Face Value of the Share (Rs. 10
each)) |
3424 |
3424 |
3424 |
|
15 |
Reserves excluding Revaluation Reserves as per Balance
Sheet of previous accounting year |
- |
- |
- |
|
16 |
Earnings Per Share (of Rs. 10 each
not annualised) |
|
|
|
|
|
a) Basic b) Diluted |
4.94 4.89 |
0.80 0.80 |
0.70 0.70 |
|
A PARTICULARS OF SHAREHOLDING |
|
|
|
|
1 Public
shareholding |
|
|
|
|
- Number of Shares |
16140440 |
16140440 |
16140440 |
|
- Percentage of
Shareholding |
47.13 |
47.13 |
47.13 |
|
2
Promoters and Promoter Group Shareholding |
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
- Number of shares |
- |
- |
- |
|
- Percentage of shares (as a % of the total |
- |
- |
- |
|
shareholding of the promoter and promoter group) |
- |
- |
- |
|
- Percentage of shares (as a % of the total of the |
- |
- |
- |
|
share capital of the company) |
- |
- |
- |
|
b) Non encumbered |
|
|
|
|
- Number of shares |
18103094 |
18103094 |
18103094 |
|
- Percentage of shares (as a % of the total |
100.00 |
100.00 |
100.00 |
|
shareholding of the promoter and promoter group) |
|
|
|
|
- Percentage of shares (as a % of the total of the |
52.87 |
52.87 |
52.87 |
|
share capital of the company) |
|
|
|
|
|
Particulars |
Quarter ended |
|
|
31.12.2012 |
30.09.2012 |
||
|
B |
INVESTOR COMPLAINTS |
|
|
|
|
Pending at the beginning of the quarter |
3 |
2 |
|
|
Received during the quarter |
1 |
3 |
|
|
Disposed off during the quarter |
3 |
2 |
|
|
Remaining unresolved at the end of the quarter |
1 |
3 |
NOTES:
1. The above results were reviewed by
the Audit Committee and thereafter approved by the Board of Directors at their
meeting held on 7th February, 2013. A limited review of the above
financial results have been carried out by the statutory auditors, pursuant to
clause 41 of the Listing Agreement.
2(a). The Company had introduced a
Voluntary Retirement Scheme (VRS) for employees of its Bhandup unit. During the
quarter, 188 employees opted for the VRS. The compensation in this respect
aggregates Rs. 136.600 millions which is disclosed as an exceptional item.
2(b). In
the previous quarter, the Company changed its method of recognizing provision
for warranty from actual claim basis to expected cost, based on past trends.
The provision upto March 31,2012 amounting to Rs. 140.400 millions has been
disclosed as an exceptional item.
3.
During
the quarter, the Company made an additional investment of Rs. 109.600 millions
in CEAT Bangladesh Limited, its Subsidiary Company in Bangladesh. Subsequent to
the quarter end, the Company has entered into a Joint Venture agreement with
the AK Khan and Company Limited ('JV Partner')/ Bangladesh and CEAT Bangladesh
Limited ('the JV Company'). Pursuant to the Joint Venture Agreement, the
Company will hold 70% of the equity capital of the JV Company while balance 30%
will be held by the JV partner.
4.
The
Company has only one business segment "Tyres".
5.
The
figures have been regrouped / rearranged wherever considered necessary to conform
to current period / year's classification and grouping.
FIXED ASSETS:
· Land (Freehold / Leasehold)
· Building
· Plant and Equipments
· Furniture and fixture
· Vehicles
· Office Equipments
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 30000.000 Millions
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.
CORPORATE HISTORY:
- CEAT International was first
established in 1924 at Turino in
- In 1958, CEAT came to
- In 1982, the RPG Group took over CEAT
Tyres of India, and in 1990, renamed the company CEAT Limited
The journey since
have been smooth, ups and downs not withstanding. Today, they are on a roll and
looking long distance.
CURRENT MILEAGE:
·
Operations in Mumbai, Nasik & Halol plants
·
Over 6 million tyres produced every year
·
Exports to
·
Network of 37 regional offices, 8 Zones, over 3,500
dealers and more than 100 C&F agents
·
Dedicated customer service, with customer service
managers in all four divisional offices, assisted by 50 service engineers.
PRESS RELEASE
CEAT FORMS JV WITH BANGLADESH CO; TO INVEST USD 67 MILLION
Jan 27, 2013
RPG Group's tyre-making arm Ceat today
announced formation of a joint venture company with the Bangladesh-based AK
Khan & 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.
The joint venture, in which Ceat will hold 70 percent stake,
is a part of the long-term strategy for both the partners to have a presence in
the growing tyre market in Bangladesh, the release said.
"This strategic partnership will enable us establish a leadership
presence in the large tyre market of Bangladesh," Ceat Managing Director
Anant Goenka said. Under the agreement, Ceat will provide technical and
business expertise and manage the JV operations, while AK Khan will bring in
knowledge of Bangladesh market besides providing the strength of "goodwill
and local presence".
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 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.54.71 |
|
|
1 |
Rs.82.79 |
|
Euro |
1 |
Rs.71.43 |
INFORMATION DETAILS
|
Report Prepared
by : |
NID |
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 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
51 |
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.