MIRA
INFORM REPORT
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Report Date : |
31.07.2007 |
IDENTIFICATION DETAILS
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Name : |
JAGAN LAMPS LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
1993 |
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Com. Reg. No.: |
33993 |
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CIN No.: [Company
Identification No.] |
U31501HR1998PLC033993 |
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IEC No.: |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELJ04676A |
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PAN No.: [Permanent
Account No.] |
AAACJ0689D |
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Legal Form : |
Public limited liability company. The company's shares are listed on the
Stock Exchanges. |
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Line of Business : |
Manufacturing and Marketing of Automotive Lamps / Auto
Halogen Bulbs. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
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Maximum Credit Limit : |
USD 423600 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is a listed company having moderate track. Company’s
profitability is under severe pressure. Payments are reported as slow and
delayed. The company can be considered for small business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
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Tel. No.: |
91-11-25415357 / 25112342 / 25112357 |
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Fax No.: |
91-11-25448165 / 25459172 |
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E-Mail : |
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Website : |
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Head Office : |
14, DDA Transport Centre, |
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Tel. No.: |
91-11-25415357 / 25112342 / 25112357 |
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Fax No.: |
91-11-25448165 / 25459172 |
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E-Mail : |
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Factory 1 : |
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DIRECTORS
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Name : |
Mr. S. P. Aggarwal |
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Designation : |
Chairman & Managing Director |
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Date of Birth/Age : |
57 years |
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Qualification : |
B. Tech |
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Experience : |
40 years |
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Name : |
Mr. Ashish Aggarwal |
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Designation : |
Wholetime Director |
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Date of Birth/Age : |
29 years |
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Qualification : |
B. E. |
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Experience : |
8 years |
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Name : |
Mr. Alok Aggarwal |
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Designation : |
Director (Production) |
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Date of Birth/Age : |
27 years |
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Qualification : |
B. S. C. |
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Experience : |
8 years |
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Name : |
Mr. Ramesh Chand |
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Designation : |
Director |
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Name : |
Mrs. Geeta Singhal |
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Designation : |
Director |
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Name : |
Mrs. Rekha Aggarwal |
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Designation : |
Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters |
2665870 |
38.66 |
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Mutual Funds |
13700 |
0.20 |
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FIIs and NRIs |
934800 |
13.56 |
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Domestic Companies |
626700 |
9.09 |
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Residential Individuals |
2654000 |
38.49 |
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Total |
6895070 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and Marketing of Automotive Lamps / Auto
Halogen Bulbs. |
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Products : |
Ø
Auto
Bulbs Ø
Halogen
Bulbs Ø
Head
Lights Ø
Automotive
Electrical Spares |
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Brand Names : |
JAGAN |
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Exports : |
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Products : |
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Countries : |
Europe, |
PRODUCTION STATUS
The company has a production capacity of 15 million pieces per annum.
The company’s products are manufactured in accordance with ECE / SAE Regulations.
GENERAL INFORMATION
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No. of Employees : |
About 170 |
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Bankers : |
Ø
Union Bank of Ø
American Express Bank Limited, Connaught
Place, New Delhi-110001, Ø American Express Bank Limited Ø
Citi Bank |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Bhasin Raghvan & Company Chartered Accountants |
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Address : |
F-48, Bhagat Singh Market, New Delhi-110001, |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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9000000 |
Equity shares |
Rs. 10/- each |
Rs. 90.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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6889500 |
Equity sharis |
Rs. 10/-
each |
Rs. 688.950
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
68.900 |
68.900 |
68.900 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
37.000 |
37.700 |
36.300 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
105.900 |
106.600 |
105.200 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
105.900 |
106.600 |
105.200 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
43.900 |
38.200 |
41.200 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
0.800
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0.600 |
13.100 |
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Sundry Debtors |
28.200
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26.400 |
16.600 |
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Cash & Bank Balances |
34.000
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42.000 |
30.800 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
8.200
|
2.500 |
4.200 |
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Total
Current Assets |
71.200
|
71.500 |
64.700 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
7.500
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2.400 |
0.600 |
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Provisions |
1.700
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0.900 |
0.400 |
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Total
Current Liabilities |
9.200
|
3.300 |
1.000 |
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Net Current Assets |
62.000
|
68.200 |
63.700 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.200 |
0.300 |
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TOTAL |
105.900 |
106.600 |
105.200 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
76.400 |
82.800 |
73.200 |
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Other Income |
1.100 |
(0.100) |
9.800 |
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Total Income |
77.500 |
82.900 |
63.400 |
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Profit/(Loss) Before Tax |
(0.500) |
1.900 |
1.700 |
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Provision for Taxation |
0.200 |
0.500 |
0.200 |
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Profit/(Loss) After Tax |
(0.700) |
1.400 |
1.500 |
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Earnings in Foreign Currency : |
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Total Earnings |
56.739 |
NA |
NA |
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Imports : |
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Total Imports |
39.683 |
NA |
NA |
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Expenditures : |
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Manufacturing Expenses |
12.600 |
12.000 |
6.600 |
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Administrative Expenses |
7.200 |
7.200 |
5.400 |
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Raw Material Consumed |
52.400 |
57.200 |
42.200 |
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Employee Cost |
0.100 |
0.000 |
2.300 |
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Miscellaneous Expenses |
1.000 |
0.500 |
0.900 |
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Interest |
0.200 |
0.000 |
0.000 |
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Power & Fuel |
1.000 |
0.700 |
0.900 |
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Depreciation & Amortization |
3.500 |
3.400 |
3.400 |
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Total Expenditure |
78.000 |
81.000 |
61.700 |
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SUMMARISED RESULTS
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PARTICULARS |
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31.03.2007 |
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Type |
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Full Year |
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Sales turnover |
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75.800 |
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Other income |
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1.000 |
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Total income |
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76.800 |
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Total expenditure
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73.100 |
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Operating profit
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3.700 |
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Interest |
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0.000 |
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Gross profit |
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3.700 |
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Depreciation |
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3.500 |
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Tax |
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1.000 |
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Reported PAT |
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(0.800) |
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Dividend (%) |
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0.000 |
KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt equity ratio |
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0.00
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0.00 |
0.00 |
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Long term debt – equity ratio |
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0.00
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0.00 |
0.00 |
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Current ratio |
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11.42
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31.67 |
59.10 |
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TURNOVER RATIO |
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Fixed assets |
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1.05
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1.21 |
1.07 |
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Inventory |
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109.14
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12.09 |
4.33 |
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Debtors |
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2.80
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3.85 |
5.79 |
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Interest cover ratio |
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(1.50)
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0.00 |
0.00 |
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Operating profit margin (%) |
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4.19
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6.64 |
6.97 |
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Profit before interest and tax margin (%) |
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(0.39)
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2.54 |
2.32 |
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Cash profit margin (%) |
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3.66
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5.92 |
6.69 |
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Adjusted Net Profit Margin (%) |
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(0.92)
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1.81 |
2.05 |
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Return on Capital Employed (%) |
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(0.28)
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1.99 |
1.63 |
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Return on Net Worth (%) |
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(0.66)
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1.42 |
1.44 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Incorporated in 1993 Jagan Li-Tech Lamps(JLL) set up its own plant at a cost Rs.78.500 millions 100% EOU to manufacture automobile H4 type halogen lamps in technical and financial collaboration with Li-Tech Corporation of South Korea (9% equity holding). Under the agreement, Li-Tech will supply the machinery and equipment for halogen lamps, and will also supply raw materials and components, and buy 75% of the production at twice the cost of imported raw material for the initial five years of production. The remaining 25% will be sold in the domestic market. Automobile halogen lamps enjoy good demand due to their technical superiority. The company tapped the primary market during April 1995 to finance the project.
The company name was changed to Jagan Lamps in 1998.
The company introduced new concept in bulbs during 2000-01 by which it
illumnates the Super white Light, Xemon, Gold, Green types of Lights suitable
for New Generation drivers.
BUSINESS
The company has an in-house tool room, which is involved in uninterrupted Quality Production of Tools and their maintenance for smooth production and on time deliveries.
The company has financial and technical collaboration with
Li-Tech of
Fixed Assets
Ø Land
Ø Site Development
Ø Building
Ø Electrical Installation
Ø Plant and Machinery
Ø Gas Pipeline
Ø Too
Ø Typewriter
Ø Air Conditioner
Ø Computer
Ø Scooter
Ø Car
Ø Fax and FPBAX
Ø Generator
Ø Miscellaneous Equipments
Ø Neon Sign Board
Ø Furniture and Fixtures
Ø
Water Cooler
Directors Report:
FINANCIAL AND
OPERATIONAL PERFORMANCE:
On operational part, Sales of the Company has declined by about 8% as compared
to 2004-2005. This is duty to tough competition in the International market.
The Company is bringing new technology and new machine to over come this
difficulty. The new machines are to be installed very soon.
Since the Company has completed its 10 years operation hence the Income Tax exemption
is not available the Company as per Income Tax Act.
However, the Company has maintained its status as Profit Making Company which
has been made possible by confidence on the Staff Members/ Workers of the
Management and continues support from the Members Foreign/Domestic
Buyers.
BUSINESS:
The Company is mainly in the Business of Manufacturing Automotive Bulbs and
Lights. The Company holds 100% EOU status. In Export Market it is facing a
tough competition from
OPPORTUNITIES:
The Company is in the process of acquiring Land for setting up a new Unit at
Himachal Pradesh where it would enjoy 100% excise exemption for 10 years and
100% Income Tax exemption for 5 years. However 30% Income Tax Exemption will be
available for further next 5 years.
THREATS:
Increase in the prices of major Raw Materials like Tungsten Filaments,
Molybednum, Brass and other Member Components along with Fuel Cost which has
increased all over the world is impacting the profitability. The operating
margin is also under pressure due to increase in Input Cost which is not
possible to recover entired from the customers.
SEGMENTWISE PERFORMANCE:
The Company operates in Single Segment i.e. Automotive Lamps and Lights.
Website Details:
About Us
Subject is a leading
manufacturer and exporter of Auto
Bulbs, Halogen Bulbs, Head Lights, Automotive Electrical Spares and
other related products of extremely high quality at competitive prices. The company
was established in 1994 with the purpose of producing best quality bulbs for the upcoming new generation
cars. Subject has developed Lamps of wide variety like Automotive Lamps, Blue Xenon Lamps, Amber/Silver Indicator Lamps
for the varied requirement of customers in different fields.
Quality
They have installed most advanced
computer controlled lumen and color measuring equipments to ensure that
only best quality product reaches to the customers. They believe in maintaining
high standards in all aspects like product, price and service. Working with a
team spirit to achieve their objective, they serve their esteemed customers all
over the world with International quality performance. Due to high level of
quality standards they have received conformity of production certificate from TUV for the plant.
Infrastructure
They have installed latest machines and
equipments at their manufacturing unit operated by trained and skilled technicians.
The sophisticated machines are updated at regular intervals with the
advancement of technology. The intense efforts of R&D team and the trained
technicians have helped them in staying ahead in the market and lots of
innovations are done so that they always stand as the leaders.
An ISO 9001:2000 Certified Company
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or anti-terrorism
sanction laws or whose assets were seized, blocked, frozen or ordered forfeited
for violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
|
THEM Dollar |
1 |
Rs.40.44 |
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|
1 |
Rs.82.03 |
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Euro |
1 |
Rs.55.42 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
4 |
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OPERATING SCALE |
1~10 |
3 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
4 |
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--PROFITABILIRY |
1~10 |
-- |
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--LIQUIDITY |
1~10 |
4 |
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--LEVERAGE |
1~10 |
4 |
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--RESERVES |
1~10 |
3 |
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--CREDIT LINES |
1~10 |
3 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
30 |
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 |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|