MIRA INFORM REPORT
|
Report Date : |
31.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
CEAT LIMITED |
|
|
|
|
Registered
Office : |
463, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
10.03.1958 |
|
|
|
|
Com. Reg. No.: |
11-011041 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.359.557 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L25100MH1958PLC011041 |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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|
|
|
Line of Business
: |
Manufacturing of Automotive Tyres, Tubes and Flaps. |
|
|
|
|
No. of Employees
: |
Not Divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
A (64) |
|
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 |
|
Status : |
Good |
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|
|
|
Payment Behaviour : |
Regular |
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|
|
|
Litigation : |
Exist |
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|
|
|
Comments : |
Subject is a
well-established and reputed company having fine track record. The rating
reflects company’s established market position in tyres
segment supported by healthy financial risk profile, adequate liquidity
position and fair profitability levels of the company. Trade relations
are reported as fair. Business is active. Payment terms are reported to be
regular and as per commitment. The company can
be considered good for normal business dealings at usual trade terms and
conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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
N E W S
Verdict Implications
: Apex court order may alter coal import dynamics. Traders go slow on talks
over coal supply contracts, uncertainty over cancellation of blocks weigh on
stocks.
Recent arrest of the
Chennai head of the Registrar of Companies, the ministry of corporate affairs
arm that ensures that companies file all the information required by the
Companies Act is the latest manifestation of a messy fight between a father and
his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation
arrested Manumeethi Cholan
after he accepted Rs 10 lakhs
as bribe from M A M Ramaswamy, a CBI official said.
Central Bureau of
Investigation books Electrotherm for cheating Central
Bank of Rs 4360 mn.
Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would
take a few more quarters to bring down levels to 13-15 %.
DHL to invest
Euro 100 mn in India over next 2 years. The firm has
chosen India to pilot its e-commerce business model for the Asia-Pacific
region.
Blackstone may buy
stake in BlueRidge SEZ in line with the fund’s real
estate strategy in India.
Kingfisher Airlines
Ltd grounded in October 2012 under the weight of heavy debt and accumulated
losses, recently approached the Delhi high court for relief in two separate
cases. The airline challenged a notice by Punjab & National Bank alleging
that It had wilfully defaulted on Rs
7700 mn of loans and sought more time to comply with
the requirements under the listing agreements with the Stock Exchanges.
OnMobile likely to sack another 300 employees. The
lay-offs follow a spate of senior-level exits over the past two years, starting
with of its founder. The overall lay-offs could number around 600 and are
driven by the need to cut costs, says a former employee.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long Term Bank Facility=A |
|
Rating Explanation |
Adequate degree of safety and low credit
risk. |
|
Date |
October 22, 2014 |
|
Rating Agency Name |
CARE |
|
Rating |
Short Term Bank Facility=A1 |
|
Rating Explanation |
Strong degree of safety and lowest credit
risk. |
|
Date |
October 22, 2014 |
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
31-03-2014.
INFORMATION DENIED
MANAGEMENT NON CO-OPERATIVE (91-22-24930621)
LOCATIONS
|
Registered Office : |
463, |
|
Tel. No.: |
91-22-24930621 / 24616054
/ 25640461 / 25660461 / 63 / 66670200 / 61073500 |
|
Fax No.: |
91-22-24606039 /
25640301 / 25663964 / 66670299 / 24975798 |
|
E-Mail : |
|
|
Website : |
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|
Area : |
10000 sq. ft. |
|
Location : |
Owned |
|
|
|
|
Factory 1 : |
Village Road, Bhandup, Mumbai – 400 078, |
|
|
|
|
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 ·
|
|
|
|
|
Sales Office : |
Located At: · Chhattisgarh · Madhya Pradesh · Bihar · Delhi · Uttar Pradesh · Karnataka · Andhra Pradesh · Maharashtra · Goa · Gujarat |
DIRECTORS
As on 31.03.2014
|
Name : |
Mr. H. V. Goenka |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Anant Vardhan Goenka |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Arnab Banerjee |
|
Designation : |
Executive Director – Operations |
|
|
|
|
Name : |
Mr. Vinay Bansal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. A. C. Choksey |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Paras K. Chowdhary |
|
Designation : |
Director |
|
|
|
|
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 |
|
|
|
|
Name : |
Mr. K. R. Podar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Punita Lal |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. H. N. Singh Rajpoot |
|
Designation : |
Company Secretary |
|
Address : |
463, |
|
|
|
|
Audit Committee : |
Mr. Hari L. Mundra
- Chairman Mr. S. Doreswamy Mr. Mahesh S. Gupta |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2014
|
Category of
Shareholder |
Total No. of Shares |
% of Total No. of Shares |
|
(A) Shareholding of Promoter
and Promoter Group |
|
|
|
|
|
|
|
|
148118 |
0.41 |
|
|
18603272 |
51.74 |
|
|
18751390 |
52.15 |
|
|
|
|
|
|
1782348 |
4.96 |
|
|
1782348 |
4.96 |
|
Total shareholding of Promoter
and Promoter Group (A) |
20533738 |
57.11 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1509415 |
4.20 |
|
|
33438 |
0.09 |
|
|
9700 |
0.03 |
|
|
810986 |
2.26 |
|
|
5627884 |
15.65 |
|
|
7991423 |
22.23 |
|
|
|
|
|
|
1581086 |
4.40 |
|
|
|
|
|
|
4382015 |
12.19 |
|
|
1320150 |
3.67 |
|
|
147298 |
0.41 |
|
|
3604 |
0.01 |
|
|
3000 |
0.01 |
|
|
37 |
0.00 |
|
|
140657 |
0.39 |
|
|
7430549 |
20.67 |
|
Total Public shareholding (B) |
15421972 |
42.89 |
|
Total (A)+(B) |
35955710 |
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) |
35955710 |
0.00 |
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 : |
Not Divulged |
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Bankers : |
v Axis Bank Limited v Bank of Baroda v Bank of India v Corporation Bank v EXIM Bank v ICICI Bank Limited v IDBI Bank Limited v State Bank of India v UCO Bank v YES Bank Limited |
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Facilities : |
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|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S. R. Batliboi and Associates LLP Chartered Accountants |
|
Address : |
14th Floor, The Ruby 29 Senapati Bapat Marg, Dadar (West), Mumbai – 400028, Maharashtra, India |
|
Tel. No. : |
91-22-61920000 |
|
Fax No. : |
91-22-61921000 |
|
|
|
|
Legal Adviser: |
1. Mulla and Mulla and Craige Chartered Accountants 2. Blunt and Caroe
Chartered Accountants |
|
|
|
|
Related parties
where control exists : |
v Associated CEAT Holdings Company (Pvt.) Limited (ACHL) (Subsidiary Company) v CEAT Bangladesh Limited (CEAT Bangladesh) (Subsidiary Company) v Rado Tyres Limited (Subsidiary Company) (w.e.f. 27th September, 2013) |
|
|
|
|
Related parties
with whom transactions have taken place during the year : |
v CEAT-Kelani Holding Company (Pvt.) Limited (CKHL) (Joint Venture of ACHL) v Associated CEAT (Pvt.) Limited (ACPL) (Subsidiary of CKHL) v CEAT-Kelani International Tyres (Pvt.) Limited, (CKITL) (Subsidiary of CKHL) v CEAT Kelani Radials Limited (CKRL) (Subsidiary of CKHL) v Asian Tyres (Pvt) Limited ( ATPL) (Subsidiary of CKITL) (w.e.f 14th November, 2012) v Instant Holdings Limited (Investing entity in respect of which CEAT Limited is an Associate) |
CAPITAL STRUCTURE
As on 31.03.2014
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 Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
35956398 |
Equity Shares |
Rs.10/- each |
Rs.359.564 Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
34243534 |
Equity Shares |
Rs.10/- each |
Rs.342.435 Millions |
|
1712176 |
Add : Shares Allotted during the year |
|
Rs.17.122 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.359.557
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders'
Funds |
|
|
|
|
(a) Share Capital |
359.557 |
342.435 |
342.435 |
|
(b) Reserves & Surplus |
9311.448 |
7087.676 |
6184.604 |
|
(c) Money
received against share warrants |
0.000 |
36.397 |
36.397 |
|
|
|
|
|
|
(2)
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
9671.005 |
7466.508 |
6563.436 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
4224.918 |
4216.689 |
5793.423 |
|
(b) Deferred tax liabilities (Net) |
1090.950 |
745.207 |
334.284 |
|
(c) Other long term liabilities |
14.220 |
14.220 |
14.220 |
|
(d) long-term provisions |
202.104 |
120.069 |
80.418 |
|
Total Non-current Liabilities (3) |
5532.192 |
5096.185 |
6222.345 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
5747.816 |
3821.581 |
5011.587 |
|
(b) Trade payables |
6692.598 |
7760.612 |
6443.290 |
|
(c) Other current
liabilities |
5469.078 |
5762.251 |
5776.650 |
|
(d) Short-term provisions |
664.030 |
654.359 |
209.184 |
|
Total Current Liabilities (4) |
18573.522 |
17998.803 |
17440.711 |
|
|
|
|
|
|
TOTAL |
33776.719 |
30561.496 |
30226.492 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i)
Tangible assets |
14129.557 |
14419.224 |
14595.374 |
|
(ii) Intangible Assets |
612.548 |
610.080 |
645.269 |
|
(iii) Capital
work-in-progress |
302.304 |
99.354 |
134.159 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.200 |
|
(b) Non-current Investments |
1243.356 |
447.084 |
441.632 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
752.869 |
1182.919 |
452.755 |
|
(e) Other Non-current assets |
100.481 |
105.728 |
113.473 |
|
Total Non-Current Assets |
17141.115 |
16864.389 |
16382.862 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
303.196 |
|
(b) Inventories |
7182.781 |
5314.401 |
5796.059 |
|
(c) Trade receivables |
7158.424 |
6357.459 |
6142.276 |
|
(d) Cash and cash
equivalents |
1029.560 |
813.501 |
371.534 |
|
(e) Short-term loans and
advances |
932.125 |
1048.570 |
1122.763 |
|
(f) Other current assets |
332.714 |
163.176 |
107.802 |
|
Total Current Assets |
16635.604 |
13697.107 |
13843.630 |
|
|
|
|
|
|
TOTAL |
33776.719 |
30561.496 |
30226.492 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
53548.105 |
48814.447 |
44757.318 |
|
|
|
Other Income |
205.406 |
214.759 |
287.098 |
|
|
|
TOTAL |
53753.511 |
49029.206 |
45044.416 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
34513.883 |
33432.626 |
32716.056 |
|
|
|
Purchases of Stock-in-Trade |
1170.821 |
687.093 |
516.073 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
(1012.331) |
(341.931) |
258.996 |
|
|
|
Employees benefits expense |
2890.719 |
2690.974 |
2165.281 |
|
|
|
Other expenses |
9800.756 |
8265.602 |
6632.875 |
|
|
|
Exceptional Items |
100.393 |
276.956 |
31.564 |
|
|
|
TOTAL |
47464.241 |
45011.320 |
42320.845 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
6289.270 |
4017.886 |
2723.571 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
1691.589 |
1778.907 |
1921.615 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
4597.681 |
2238.979 |
801.956 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
826.332 |
781.648 |
704.741 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
3771.349 |
1457.331 |
97.215 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
1233.527 |
393.816 |
21.830 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
2537.822 |
1063.515 |
75.385 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
3328.717 |
2535.455 |
2499.868 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend on Equity Shares |
366.406 |
136.974 |
34.244 |
|
|
|
Corporate Tax on Proposed Dividend |
52.610 |
23.279 |
5.554 |
|
|
|
Transfer to General Reserve |
253.800 |
110.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
5193.723 |
3328.717 |
2535.455 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Sales calculated on FOB basis |
10749.429 |
10899.587 |
9927.588 |
|
|
|
Royalty |
43.299 |
36.984 |
36.264 |
|
|
|
Dividend |
83.716 |
56.847 |
64.641 |
|
|
|
Technical Development Charges |
33.423 |
0.000 |
4.500 |
|
|
TOTAL EARNINGS |
10909.867 |
10993.418 |
10032.993 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
15905.465 |
13489.009 |
13874.172 |
|
|
|
Traded Goods |
333.921 |
264.068 |
137.452 |
|
|
|
Components & Spares |
42.240 |
68.156 |
27.913 |
|
|
|
Capital Goods |
219.783 |
156.069 |
770.488 |
|
|
TOTAL IMPORTS |
16501.409 |
13977.302 |
14810.025 |
|
|
|
|
|
|
|
|
|
|
Earnings / (Loss)
Per Share (Rs.) |
|
|
|
|
|
|
Basic |
71.66 |
31.06 |
2.20 |
|
|
|
Diluted |
71.24 |
30.44 |
2.20 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
4.72 |
2.17 |
0.17 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.04 |
2.99 |
0.22 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
11.70 |
4.86 |
0.33 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.39 |
0.20 |
0.01 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.03 |
1.08 |
1.65 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.90 |
0.76 |
0.79 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
342.435 |
342.435 |
359.557 |
|
Reserves & Surplus |
6184.604 |
7087.676 |
9311.448 |
|
Money received against share warrants |
36.397 |
36.397 |
0.000 |
|
Net worth |
6563.436 |
7466.508 |
9671.005 |
|
|
|
|
|
|
long-term borrowings |
5793.423 |
4216.689 |
4224.918 |
|
Short term borrowings |
5011.587 |
3821.581 |
5747.816 |
|
Total borrowings |
10805.010 |
8038.270 |
9972.734 |
|
Debt/Equity ratio |
1.646 |
1.077 |
1.031 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Revenue from operations |
44757.318 |
48814.447 |
53548.105 |
|
|
|
9.065 |
9.697 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Revenue from operations |
44757.318 |
48814.447 |
53548.105 |
|
Profit |
75.385 |
1063.515 |
2537.822 |
|
|
0.17% |
2.18% |
4.74% |
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 |
Yes |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
No |
|
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 |
Yes |
|
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 |
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 |
LITIGATION DETAILS
|
HIGH COURT OF
BOMBAY |
|
CASE DETAILS BENCH: BOMBAY |
|
Presentation
Date:- 19.05.2014 |
|
Lodging No.:- CEXAL/166/2014 Filing
Date:- 19/05/2014 Reg. No.:- CEXA/91/2014 Reg.
Date:- 23.06.2014 |
|
Petitioner: THE COMMISSIONER OF CENTRAL EXCIS- Respondent: CEAT LIMITED Petn. Adv : PRADEEP SHIVNARAIN JETLY (I3289) District: THANE |
|
Bench: DIVISION Status: Pre-Admission
Category:
CENTRAL EXCISE APPEAL (CEXA) Last Date: 01.09.2014
Stage: FRESH ADMISSION Last Coram: HON’BLE SHRI JUSTICE S.C. DHARMADHIKARI HON’BLE SHRI JUSTICE
A.K. MENON |
|
Act: Central Excise and Salt Act UNDER SECTION: 35(G) |
UNSECURED LOANS
|
PARTICULAR |
31.03.2014 (Rs. In Millions) |
31.03.2013 (Rs. In Millions) |
|
LONG TERM
BORROWINGS |
|
|
|
Public Deposits |
528.730 |
738.986 |
|
Deferred Sales Tax Incentive |
418.424 |
449.405 |
|
|
|
|
|
SHORT TERM
BORROWINGS |
|
|
|
Export Packing Credit |
387.682 |
0.000 |
|
Term Loan from Bank |
535.962 |
0.000 |
|
Public Deposit |
18.012 |
28.315 |
|
|
|
|
|
Total |
1888.810 |
1216.706 |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number
(SRN) |
|
1 |
10348599 |
28/03/2012 |
700,000,000.00 |
ICICI BANK LIMITED |
LANDMARKRACE COURCE CIRCLE, ALKAPURI,
BARODA, Gujarat - 390015, INDIA |
B37260502 |
|
2 |
10247473 |
21/10/2010 |
1,164,600,000.00 |
ICICI BANK LIMITED |
LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA,
Gujarat - 390015, INDIA |
A96947650 |
|
3 |
10231597 |
21/06/2010 |
500,000,000.00 |
Bank of Baroda |
Industrial Finance Branch, Baroda House, Cawasjee |
A89904403 |
|
4 |
10230552 |
21/06/2010 |
1,000,000,000.00 |
Export-Import Bank of India |
Centre One Building, Floor 21, World Trade
Centre Complex, Cuffe Parade, Mumbai, Maharashtra - 400005, INDIA |
A89559595 |
|
5 |
10230550 |
21/06/2010 |
1,300,000,000.00 |
ICICI BANK LIMITED |
LANDMARKRACE COURCE CIRCLE, ALKAPURI,
BARODA, Gujarat - 390015, INDIA |
A89552947 |
|
6 |
10212609 |
21/06/2010 * |
1,000,000,000.00 |
Bank of India |
Mumbai Large Corporate Branch, Bank of
India Bldg, |
A89770556 |
|
7 |
10179171 |
21/06/2010 * |
1,100,000,000.00 |
IDBI Bank Limited |
IDBI TOWERWTC COMPLEX, CUFFE PARADE,
MUMBAI, Maharashtra - 400005, INDIA |
A89762595 |
|
8 |
10125671 |
21/06/2010 * |
576,550,000.00 |
ICICI BANK LIMITED |
LANDMARKRACE COURCE CIRCLE, ALKAPURI,
BARODA, Gujarat - 390015, INDIA |
A90037847 |
|
9 |
80004608 |
27/09/2013 * |
12,000,000,000.00 |
Bank of India |
Mumbai Large Corporate Branch, Oriental Building,
364, D. N. Road, Mumbai, Maharashtra -
400001, |
B87292843 |
* Date of charge modification
CORPORATE INFORMATION
Subject is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The company’s principal business is manufacturing of automotive tyres, tubes and flaps. The company started operations in 1958 as CEAT Tyres of India Limited and was renamed as CEAT Limited in 1990. The company caters to both domesticand international markets.
INDUSTRY SCENARIO
The
challenges faced by the Indian economy during the last fiscal continued during
FY 2013-14 as well. India continued to grapple with problems like slowdown in
industrial and economic activity, increased inflation and fiscal imbalances.
However, the second half of the year witnessed some positive developments in
the form of policy announcements and global economic recovery.
The growth of
the automotive industry was not impressive in FY 2013-14 with commercial
vehicles and passenger vehicles dragging down volumes even as tractors and
scooters continued their positive trend.
Export sales
however, grew by about 7.2 percent during the period from April 2013 to March
2014.
The Indian
tyre industry, following the trends of the automotive industry, has not
registered any significant growth. The total tyre volume growth during the year
has been 2 to 4 percent due to higher than anticipated weakness in the
passenger car and truck and bus segments.
The domestic
tyre demand from the Original Equipment Manufacturers (OEM) segment is largely
flat for the second consecutive year during FY 2013-14, with contraction across
all segments, barring scooters and tractors. Replacement tyre volume demand
during FY 2013-14 grew by 5-6 percent. The continued decline in the Medium and
Heavy Commercial Vehicles (M&HCV) industry and delayed replacement of
vehicles by fleet owners translated into higher replacement demand for tyres in
this segment.
PERFORMANCE
During the
year, Subject outperformed the industry and has emerged as one of the fastest
growing tyre companies in the industry. The Company registered a turnover of Rs. 53041.000 millions during the year, registering a
robust growth of 9.6 per cent over Rs. 48367.000
millions in the previous fiscal.
The net
profit of the Company surged from Rs. 1064.000
millions in FY 2012-13 to Rs. 25380.000 millions in
during the year on the back of changing product mix, higher capacity
utilisation, reduced interest cost, and expanding presence in the international
markets as well as lower natural rubber prices.
Subject has
continuously focussed on new product launches and has launched over a 100 new
products in FY 2013-14. Product ranges like ‘Gripp LN
(low noise)’ for passenger car radials and ‘Zoom’ for motorcycle tyres have
been very successful. The Company will continue to invest steadily in new
product development to cater to the ever changing needs of the modern consumer.
Over the last
few years, subject has focussed on changing its product portfolio by increasing
volumes in non-truck segment like two wheelers and passenger cars which have
better margins. A favourable product mix has contributed positively to the
bottom line of the Company.
The Company
has strategically enhanced its OEM network, which significantly contributed to
its growth. It has also entered into new partnerships with companies like
Renault-Nissan.
Subject is
looking at expanding its rural presence and its operations in the two-wheeler and
Passanger Car Radial (PCR) replacement market.
Expansion of Subjects hoppe is a key initiative taken
by the Company to develop an exclusive retail channel to improve service levels
and reach in the market. At present, the Company has more than 135 Subjects hoppes as compared to 100 as on March 31, 2013. Subjects hoppe has positively contributed to the company’s sales,
especially in the passenger car tyre segment accounting for 32 percent of
passenger car radials/utility vehicle radials sales.
In order to
boost its international presence, the Company has identified specific
geographic clusters for expansion, and for this purpose, it has already set up
an office in Indonesia in addition to the one in Middle East. This has helped
establish a local connect with the dealers through on-ground marketing
activities.
During the
year, the Company launched the Dhoom 3 branded,
high-speed, special-edition tyres and also released video games based on the
box-office monster. Its new Dhoom 3 tyre is targeted
at the younger segment and has provided a boost to the Company’s image as a
quality tyre manufacturer. The Company’s advertisement campaigns have garnered
the award under the “Best Ongoing Campaign” at the Effies,
a prestigious advertising award.
FUTURE OUTLOOK
The Indian
tyre industry is expected to show a muted 2 to 3 percent growth in revenues in
FY 2014-15 over the current estimate for FY 2013-14. Sluggishness in the OEM
automotive industry is expected to continue. However, the demand in the
domestic replacement market is expected to be comparatively stronger supported
by a large vehicle user base that has been accumulated over the last 3-4 years
of strong automobile sales.
Raw material
prices are expected to be stable thereby assisting operating margins of tyre
manufacturers. However, with stable raw material prices and a subdued demand
scenario, there might be pricing pressure that can impact operating margins
negatively. The Company will continue to focus on profitable product
categories, market segments and key international geographies.
MANAGEMENT DISCUSSION AND
ANALYSIS
GLOBAL ECONOMIC REVIEW
The global
economic balance shifted back towards developed nations in 2013. Encouraging economic
data in the form of decreasing unemployment and growth in the services sector
in advanced economies validated the shift. Fiscal stimulus, low interest rates
and reassurance by central bankers acted as the support system to these
economies. In contrast, there was a slowdown in emerging economies like India
and Brazil owing to subdued consumer demand and inflationary pressure.
Going
forward, it is expected that emerging economies will grow, backed by structural
policies that support investments. Improving macroeconomic fundamentals will
provide the necessary fillip for global growth, with expected growth rates
pegged at an average rate of 3.7 percent in 2014 against 3 percent in 2013.
INDIAN ECONOMIC REVIEW
The
challenges in the Indian economy persisted last year in the form of slow
growth, high inflation and fiscal imbalances. However, there were some positive
developments as well, in the form of the continuation of policy changes, normal
monsoons and global recovery towards the second half of FY 2013. It is expected
that the GDP will grow by 5.4 percent in FY 2014-15 against a projected 4.6
percent in FY 2013-14 (Source: IMF).
THE GLOBAL TYRE INDUSTRY
The global
tyre market size is estimated to reach $276 billion by 2017, growing 7.9 percent
annually. The rise in demand of tyres will be driven by the emerging economies
in the Asia-Pacific region, especially China and India. However, improved
economic conditions in the developed economies of North America and Western
Europe will also accelerate such demand. These developments are likely to take
global tyre demand to 2.9 billion units by 2017, a growth of 4.3 percent every
year. Motor vehicles capture the largest proportion of tyre demand and are
likely to form about 73 percent of the global tyre demand by 2017.
The
Asia-Pacific region
The
Asia-Pacific region is likely to account for almost two-thirds of the global
tyre growth till 2017. China is the largest as well as the fastest growing tyre
market globally. Japan and India are also among the major tyre markets. It is
expected that India will outperform Japan in terms of market size, owing to the
strong demand for tyres by the end of 2017.
The North
American / Western European region
These regions
are forecasted to grow at around 2 percent annually through 2017. An improved
economic environment will provide thrust to vehicle demand and, in turn, to
tyre demand. However, the delayed replacement of personal vehicles could limit
such growth. With 13 percent of the global pie, the US is likely to continue to
hold the second rank globally in terms of the tyre market in 2017.
FIXED ASSETS
œ Land
œ Buildings
œ Plants and Equipment’s
œ Furniture and Fixtures
œ Office Equipment’s
œ Vehicles
UNAUDITED
RESULTS FOR THE QUARTER AND ENDED ON 30TH JUNE, 2014
(Rs. In Millions)
|
|
|
Particulars |
Quarter
ended 30.06.2014 |
|
1 |
Income from Operations |
|
|
|
|
Sales/Income from Operations (Gross) |
15456.500 |
|
|
|
Less: Excise Duty |
1447.900 |
|
|
|
a) Net Sales/Income from Operations (net of excise duty) |
14008.600 |
|
|
|
b) Other Operating Income |
98.400 |
|
|
|
Total Income from Operations (Net) |
14107.000 |
|
|
2 |
Expenses |
|
|
|
|
a) |
Cost of Materials consumed |
8291.500 |
|
|
b) |
Purchase of stock in-trade |
372.000 |
|
|
c) |
Changes in inventories of finished goods, work-in-progress and
stock-in-trade |
591.200 |
|
|
d) |
Employee benefit expenses |
801.500 |
|
|
e) |
Depreciation and amortization expense |
210.200 |
|
|
f) |
Other expenses |
2770.600 |
|
|
Total Expenses |
13037.000 |
|
|
3 |
|
Profit /(Loss) from
operations before other income, finance costs and exceptional items (1-2) |
1070.000 |
|
4 |
Other Income |
27.800 |
|
|
5 |
|
Profit /(Loss) from
ordinary activities before finance costs and exceptional items (3+4) |
1097.800 |
|
6 |
Finance Costs |
389.900 |
|
|
7 |
|
Profit /(Loss) from
ordinary activities after finance costs but before exceptional items (5-6) |
707.900 |
|
8 |
Exceptional Items |
-- |
|
|
9 |
Profit /(Loss) from ordinary activities before tax |
707.900 |
|
|
10 |
Tax Expense |
239.900 |
|
|
11 |
Net Profit /(Loss) from ordinary activities after tax
(9-10) |
468.000 |
|
|
12 |
Extraordinary items (net
of tax expense) |
-- |
|
|
13 |
Net Profit /(Loss) for the period (11-12) |
468.000 |
|
|
14 |
Paid up equity share
capital (Eq. shares of Rs.10/- each) |
359.600 |
|
|
15 |
Reserve excluding
revaluation reserves |
-- |
|
|
16 |
|
Earnings per share
(before/after extraordinary items) of
Rs.10/- each |
|
|
|
|
Basic |
13.02 |
|
|
|
Diluted |
13.02 |
|
A |
|
PARTICULARS OF
SHAREHOLDING |
|
|
1 |
|
Public Shareholding |
|
|
|
|
- No. of Shares |
15421972 |
|
|
|
- Percentage of
Shareholding |
42.89 |
|
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 share capital of the Company) |
-- |
|
|
|
b) Non- encumbered |
|
|
|
|
- Number of shares |
20533738 |
|
|
|
- Percentage of shares (
as a % of the total shareholding of the promoter and promoter group) |
100.00 |
|
|
|
- Percentage of shares
(as a % of the total share capital of the Company) |
57.11 |
|
|
Particulars |
Quarter
ended 30.06.2014 |
|
|
B |
|
Investor Complaints |
|
|
|
|
Pending at the beginning
of the quarter |
0 |
|
|
|
Received during the
quarter |
6 |
|
|
|
Disposed during the
quarter |
3 |
|
|
|
Remaining unresolved at
the end of the quarter |
3 |
NOTE:
1. The above results were reviewed by the Audit Committee and thereafter approved by the Board of Directors at their meeting held on July 22, 2014.
2. Pursuant to the Companies Act, 2013 ("the Act") the management, based on technical evaluation, has provisionally reassessed the useful life of fixed assets. Consequently, the depreciation charge for the quarter ended June 30, 2014 is higher by Rs. 7.043 Millions
3. a) During the previous quarter, the Company had introduced a Voluntary Retirement Scheme (VRS) for its employees. The compensation in respect of employees who opted for VRS aggregated to Rs. 68.919 Millions which was disclosed as an exceptional item.
b) During the previous quarter, the Company's Plant at Bhandup, Mumbai, had an incident of fire at its Raw Material Store on February 23, 2014. Fixed assets of written down value of Rs.23.087 Millions and stock of Rs. 253.816 Millions were destroyed in the fire. In terms of the Company's insurance coverage, management is confident of recovering an amount of Rs. 255.640 Millions from the insurance company. An amount of Rs. 31.474 Millions being the net unrecoverable amount, including incidental expenses incurred, was disclosed as an exceptional item.
4. The Company has only one business segment "Tyres"
5. The figures have been regrouped / rearranged wherever considered necessary to conform to current period classification and grouping.
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.61.46 |
|
|
1 |
Rs.98.21 |
|
Euro |
1 |
Rs.77.45 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYA |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
ANK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
64 |
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.