MIRA
INFORM REPORT
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Report Date : |
17.09.2007 |
IDENTIFICATION DETAILS
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Name : |
JAMNA AUTO INDUSTRIES 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 : |
22.10.1985 |
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Com. Reg. No.: |
4485 |
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CIN No.: [Company
Identification No.] |
L35911HR1985PLC004485 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
RTKJ01251F |
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PAN No.: [Permanent
Account No.] |
AAACJ39999 |
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Legal Form : |
A Public Limited Liability having company. The Company’s shares are
listed on the stock exchange. These are not traded since April 2005 till
March 2006. Again, it has been traded on the Stock Exchange in 2007. |
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Line of Business : |
Manufacturer of Auto Parabolics / Tapered Leaf Springs,
Railways (Spares and Loose Leaves), Agricultural Implements and Auto
Stabilizer bars. |
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. |
Small |
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Maximum Credit Limit : |
USD 688088 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow by average 45 Days |
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Litigation : |
Exist |
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Comments : |
The company has been passing through difficult times. In year 2006-07,
the company’s performance is better and once again it has started trading on
the stock exchanges. The company is an old established business. Its payments are reported
as slow by average 45 days. However, the company can be considered for small to mediocre business
dealings at usual trade terms and conditions with slight caution. |
LOCATIONS
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Registered Office : |
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Tel. No.: |
91-1732-251810/11/12/14 |
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Fax No.: |
91-1732-251820 / 251443 |
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E-Mail : |
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Works: |
U 27 - 29 Industrial Area, Malanpur - 477 116, District: Bhind,
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Tel. No.: |
91-7539-283396 / 509117 |
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Fax No.: |
91-7539-283395 |
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Corporate Office : |
No.2, |
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Tel. No.: |
91-11-32566685 / 26893331 |
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Fax No.: |
91-11-26893192 / 26893180 |
DIRECTORS
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Name : |
Mr. Bhupinder Singh Jauhar |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. Randeep Singh Jauhar |
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Designation : |
Executive Director |
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Name : |
Mr. J K Jain |
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Designation : |
Nominee - ICICI Bank |
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Name : |
Mr. Ashwani Sharma |
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Designation : |
Nominee - HSIDC |
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Name : |
Mr. U K Singhal |
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Designation : |
Director |
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Name : |
Mr. C K Vohra |
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Designation : |
Director |
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Name : |
Mr. D K Sharma |
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Designation : |
Director |
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Name : |
Mr. H S Gujral |
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Designation : |
Director |
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Name : |
Mr. V Prakash |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Bhupinder Singh Jauhar |
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Designation : |
Chief Executive Oficer |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Auto Parabolics / Tapered Leaf Springs,
Railways (Spares and Loose Leaves), Agricultural Implements and Auto
Stabilizer bars. |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
2000 |
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Bankers : |
·
State Bank of ·
Canara Bank ·
ICICI Bank Limited · Siam Commercial Bank Plc. ·
Bank of |
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Banking
Relations : |
--- |
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Auditors : |
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Name : |
·
Goel Garg and Company
Chartered Accountants
Address: ·
ASG and Associates ( Formerly known as G. S.
Johar and Company)
Chartered Accountants
Address: |
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Associates/Subsidiaries : |
· Jai Parabolic Springs Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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20000000 |
Equity shares |
Rs.10/- each |
Rs.200.000 millions |
Issued, Subscribed
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No. of Shares |
Type |
Value |
Amount |
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8778911 |
Equity shares |
Rs.10/- |
Rs.87.789
millions |
Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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8751721 |
Equity shares |
Rs.10/- each |
Rs.87.517
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 |
87.611 |
87.611 |
87.611 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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] Reserves & Surplus |
84.411 |
74.075 |
69.883 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
172.022 |
161.686 |
157.494 |
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LOAN FUNDS |
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1] Secured Loans |
765.411 |
856.778 |
757.188 |
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2] Unsecured Loans |
95.009 |
82.354 |
45.653 |
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TOTAL BORROWING |
860.420 |
939.132 |
802.841 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1032.442 |
1100.818 |
960.335 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
515.098 |
505.768 |
511.942 |
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Capital work-in-progress |
26.516 |
22.733 |
14.836 |
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INVESTMENT |
120.848 |
120.848 |
120.848 |
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DEFERREX TAX ASSETS |
24.628 |
43.731 |
53.818 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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98.391 |
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Sundry Debtors |
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262.796 |
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Cash & Bank Balances |
712.098 |
712.222
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24.816 |
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Other Current Assets |
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0.000 |
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Loans & Advances |
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90.561 |
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Total
Current Assets |
712.098 |
712.222 |
476.564
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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402.618
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Provisions |
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Total
Current Liabilities |
463.640 |
402.618 |
315.807
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Net Current Assets |
248.458 |
309.604 |
160.757
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MISCELLANEOUS EXPENSES |
96.894 |
98.134 |
98.134 |
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TOTAL |
1032.442 |
1100.818 |
960.335 |
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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 |
1813.141 |
1815.795 |
1058.353 |
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Other Income |
5.350 |
10.791 |
0.000 |
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Increase /(Decrease) in stocks |
(38.951) |
111.566 |
0.000 |
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Total Income |
1779.540 |
1826.586 |
1058.353 |
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Profit/(Loss) Before Tax |
28.347 |
28.746 |
0.971 |
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Provision for Taxation |
20.590 |
10.137 |
16.049 |
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Profit/(Loss) After Tax |
7.757 |
18.609 |
(15.078) |
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Earnings in Foreign Currency : |
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Stores and Spares Components |
8.703 |
129.412 |
12.455 |
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Imports : |
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Raw Materials |
1118.973 |
1298.278 |
654.576 |
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Stores & Spares |
247.209 |
272.470 |
150.572 |
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Total Imports |
1366.182 |
1570.748 |
805.148 |
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Expenditures : |
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Raw Materials |
0.000 |
0.000 |
821.367 |
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Employee
Cost
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0.000 |
0.000 |
62.487 |
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Material, Manufacturing and Operating |
1417.380 |
1601.547 |
0.000 |
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Payment to and Provisions for Employees |
86.296 |
80.282 |
0.000 |
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Selling and Administration Expenses |
91.584 |
82.928 |
56.826 |
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Financial Expenses |
116.016 |
107.027 |
79.476 |
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Depreciation & Amortization |
38.677 |
37.621 |
37.226 |
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Total Expenditure |
1749.953 |
1909.405 |
1057.382 |
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SUMMARISED RESULTS
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Year |
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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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2794.20 |
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Other
Income |
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17.00 |
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Total
Income |
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2811.20 |
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Total
Expenditure |
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2631.60 |
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Operating
Profit |
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179.60 |
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Interest |
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118.20 |
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Gross
Profit |
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61.40 |
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Depreciation |
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43.50 |
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Tax |
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2.00 |
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Reported
PAT |
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15.90 |
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Dividend
(%) |
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0.00 |
QUARTERLY
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Year |
30.06.2007 |
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Type
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1st Quarter |
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Sales Turnover |
709.00
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Other Income |
2.60
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Total Income |
711.60
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Total Expenditure |
626.90
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Operating Profit |
84.70
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Interest |
34.50
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Gross Profit |
50.20
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Depreciation |
11.00
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Tax |
0.30
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Reported PAT |
38.90
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200706 Quarter 1 --------------- Notes Expenditure Includes
(Increase)/Decrease in Stock in Trade Rs (37.814)million Raw Material Consumed Rs
474.240 million Staff Cost Rs 34.587 million Power and Fuel Rs 37.253 million
Other Expenditure Rs 116.391 million Misc Exp W/off Rs 2.197 million Status of
Investor Complaints for the quarter ended June 30, 2007 Complaints Pending at
the beginning of the quarter Nil Complaints Received during the quarter 07
Complaints disposed off during the quarter 07 Complaints unresolved at the end
of the quarter Nil 1. The above results were approved by the Audit Committee
and taken on record by the Board of Directors at their meeting held on July 31,
2007. 2. The Company manufactures only Parabolic/ Tapered Springs hence Segment
Reporting does not apply to the Company. 3. During the quarter under review,
the Company has raised Rs 450 million through Preferential Issue. Upto June 30,
2007, the company has utilised Rs 157.70 million for repayment of term loan out
of the proceeds of the preferential issue. 4. Provision for deferred tax
liability (if any) shall be provided in the annual accounts of the year. 5. The
Company has proposed a scheme merger of Jai Parabolic Springs Ltd and Map
Springs Ltd with the Company. 6. The Company proposed to set up a manufacturing
facility at District Saraikala-Kharsawan, Jharkhand. 7. Previous period figures
have been regrouped to conform to the current period classification.
KEY RATIOS
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Year |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt-Equity Ratio |
5.39 |
5.46 |
4.55 |
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Long Term Debt-Equity Ratio |
4.32 |
4.39 |
3.85 |
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Current Ratio |
1.18 |
1.17 |
1.12 |
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TURNOVER RATIOS |
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Fixed Assets |
2.38 |
2.48 |
1.49 |
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Inventory |
10.73 |
13.10 |
12.70 |
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Debtors |
5.50 |
6.76 |
5.40 |
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Interest Cover Ratio |
1.24 |
1.27 |
1.02 |
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Operating Profit Margin(%) |
8.70 |
8.28 |
9.62 |
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Profit Before Interest And Tax Margin(%) |
6.86 |
6.48 |
6.58 |
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Cash Profit Margin(%) |
2.21 |
2.68 |
1.56 |
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Adjusted Net Profit Margin(%) |
0.37 |
0.89 |
-1.48 |
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Return On Capital Employed(%) |
10.68 |
12.06 |
0.00 |
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Return On Net Worth(%) |
1.42 |
5.27 |
0.00 |
STOCK PRICES
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Face Value |
Rs.10.00 |
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High |
Rs.51.00 |
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Low |
Rs.47.00 |
LOCAL AGENCY FURTHER INFORMATION
DIRECTOR REPORTS:
The Directors have pleasure in presenting their 40th report on the business
and operations of the Company and the Accounts for the financial year ended
31.03.2006.
PERFORMANCE OF THE COMPANY:
During the year 1999 to 2003 the Commercial Vehicle industry was reeling under the recession. These recessionary trends also affected both operational and financial performance of the Company. However, after the period of recession the Company has been achieving increased level of sales and started making profits. The year under review is the second continuous year in which Company has achieved all time high sales of Rs. 2104.300 millions as compared to previous year sales of Rs.2095.400 millions. The Company is a market leader and supplier to major OEM's. Approximately 80% of the total sales of the Company during the year under review was made to OEM. Tata Motors, Ashok Leyland, Eichers Motors, Swaraj Mazda are amongst major customers of the Company. The shares of Exports in the total sales was 2%, the Company plans to increase share of Exports mainly to insulate from any recession in the domestic industry and high profit margins.
Fixed Assets:
·
Goodwill
·
Land
·
Building
·
Plant
and Machinery
·
Furniture
and Fixtures
·
Vehicles
·
Office
Equipment
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Other
assets
·
Computer
and Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official 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.40.59 |
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1 |
Rs.80.74 |
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Euro |
1 |
Rs.56.15 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
4 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
4 |
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--PROFITABILIRY |
1~10 |
3 |
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--LIQUIDITY |
1~10 |
4 |
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--LEVERAGE |
1~10 |
4 |
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--RESERVES |
1~10 |
4 |
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--CREDIT LINES |
1~10 |
4 |
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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 |
NO |
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--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
NO |
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TOTAL |
|
38 |
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. |
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 |
|