MIRA
INFORM REPORT
|
Report Date : |
31.12.2008 |
IDENTIFICATION DETAILS
|
Name : |
JAIPRAKASH ENTERPRISES LIMITED |
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Registered Office : |
Sector 128, Noida-201304, Uttar
Pradesh |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
15.04.1978 |
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Com. Reg. No.: |
008027 |
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CIN No.: [Company
Identification No.] |
L24121UP1978PLC008027 |
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Legal Form : |
A Public limited liability company. The company’s shares
are listed on the stock exchange |
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Line of Business : |
Contractor of Civil Engineering
Construction |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum Credit Limit : |
USD 2038000 |
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Status : |
Good |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an established company and a part of Jaypee Group Trade relations
are fair. Business is active. Payments are expected to be slow due to current
recession in the industry. The company can be considered normal for business dealings. |
LOCATIONS
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Registered Office : |
Sector 128, Noida-201304, |
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E-Mail : |
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Head Office : |
‘JA House’, 63, Basant Lok, Vasant Vihar, New Delhi-110057, |
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Tel. No.: |
91-11-26141540 |
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Fax No.: |
91-11-26145389 |
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E-Mail : |
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Corporate Office
: |
JA Annexis, 54, Basant Lok, Vasant Vihar, New Delhi-110057, |
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Tel. No.: |
91-11-26141540 extension 336 |
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Fax No.: |
91-11-26145389/ 26148890 |
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Factory : |
19-20-, Industrial Area, Sikandarabad, District, Bulandshahar, Uttar
Praesh |
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Factory: |
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Tel No.: |
91-120-2326597 |
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Factory: |
Located at:- ·
·
·
Anupshahr, Uttar Pradesh ·
Sikandrabad, Uttar Pradesh ·
Solan, Himachal Pradesh, Rewa, Madhya Pradesh ·
Bela, Madhya Pradesh ·
Vayor, ·
Panipat, Haryana ·
Bagheri, Himachal Pradesh |
DIRECTORS
|
Name : |
Mr. Manoj Gaur |
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Designation : |
Chairman cum
Director |
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Address : |
A-9/27, Vasant Vihar, New Delhi-110057, |
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Date of Birth/Age : |
16.06.1964 |
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Date of Appointment : |
01.02.2001 |
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Name : |
Mr. Nanak Chand
Sharma |
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Designation : |
Director |
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Address : |
E-9/14, Vasant Vihar, New Delhi-110057, |
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Date of Birth/Age : |
01.07.1335 |
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Date of Appointment : |
12.02.1986 |
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Name : |
Mr. Pawan Kumar
Jain |
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Designation : |
Whole time
Director |
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Address : |
C-7/2, Vasant Vihar, New Delhi-110057, |
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Date of Birth/Age : |
25.10.1948 |
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Date of Appointment : |
01.02.2001 |
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Name : |
Mr. Bijay Kumar
Jain |
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Designation : |
Director |
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Address : |
D-72, |
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Date of Birth/Age : |
25.07.1941 |
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Date of Appointment : |
08.10.1990 |
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Name : |
Mr. Rajiv Gaur |
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Designation : |
Director |
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Address : |
1st Floor, Allahabad Bank Building, Civil
Lines, Bulandshahr- 303001, |
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Date of Birth/Age : |
28.12.1964 |
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Date of Appointment : |
30.06.2001 |
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Name : |
Mr. Subhash
Chandra Bhargava |
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Designation : |
Director |
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Address : |
1305, Dosti Aster (Dosti Acres) New |
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Date of Birth/Age : |
20.07.1945 |
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Date of Appointment : |
27.12.2005 |
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Name : |
Mr. Gunjit Singh |
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Designation : |
Director |
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Address : |
J-208, Saket, New Delhi-110017, |
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Date of Birth/Age : |
07.11.1941 |
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Date of Appointment : |
27.12.2005 |
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Name : |
Mr. Bal Krishana
Taparia |
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Designation : |
Director |
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Address : |
75, Nagina Bagh, Ajmer-305001, |
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Date of Birth/Age : |
27.11.1939 |
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Date of Appointment : |
27.12.2005 |
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Name : |
Mr. Amit Sharma |
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Designation : |
Director |
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Address : |
A-11/22, Vasant Vihar, New Delhi-110057, |
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Date of Birth/Age : |
22.09.1968 |
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Date of Appointment : |
27.12.2005 |
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Name : |
Mr. Nandan Chopra |
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Designation : |
Director |
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Address : |
S-450, Greater Kailash- I, New Delhi-110048, |
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Date of Birth/Age : |
27.08.1963 |
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Date of Appointment : |
18.10.2003 |
KEY EXECUTIVES
|
Name : |
Mr. Rajeev Kumar |
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Designation : |
Company Secretary |
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Address : |
F-66, Prashant Vihar, Rohini Sector-14, Delhi-110085, |
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Date of Birth/Age : |
03.08.1966 |
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Date of Appointment : |
10.04.2007 |
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Name : |
Mr. Nandan Chopra |
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Designation : |
Secretary |
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Address : |
S-450A, First Floor, Greater Kailash, Part – I, New
Delhi-110048, |
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Date of Birth/Age : |
27.08.1963 |
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Date of Appointment : |
18.10.2003 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.08.2007
|
Names of
Shareholders |
|
No. of Shares |
|
Ironwill Holdings
Private Limited |
|
935990 |
|
Ironwill
Investments Private Limited |
|
935440 |
|
Jaypee Ventures
Limited |
|
467970 |
|
Ajay Sharma |
|
4000 |
|
R B Singh |
|
4000 |
|
Suresh Chandra |
|
4000 |
|
V K Jain |
|
4000 |
|
B M Subanna |
|
2500 |
|
G V Bhatt |
|
2500 |
|
Gopal Das Bansal |
|
2500 |
|
K K Sood |
|
2500 |
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R K Garg |
|
2500 |
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Shambu Nath Singh |
|
2500 |
|
Parimu |
|
2500 |
AS ON 30.09.2007
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
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Bodies
corporate |
|
87.63 |
|
Other
top fifty shareholders |
|
3.70 |
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Others |
|
8.67 |
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Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Contractor of Civil Engineering
Construction |
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GENERAL INFORMATION
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Bankers : |
· Punjab National Bank · Oriental Bank of Commerce ·
Bank of |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
L C Kailash and Associates Chartered Accountants |
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Address : |
NBR House, C-124, Preet Vihar, Delhi-110092, |
CAPITAL STRUCTURE
AS ON 30.08.2007
Authorised
Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
4800000 |
Equity Shares |
Rs.10/- each |
Rs.48.000
Millions |
|
20000 |
Preference Shares |
Rs.100/-
each |
Rs.2.000
Millions |
|
|
Total |
|
Rs.50.000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2670000 |
Equity Shares |
Rs. 10/-
each |
Rs.26.700
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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|
SHAREHOLDERS FUNDS |
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|
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1] Share Capital |
26.700 |
26.700 |
26.700 |
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|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
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|
3] Reserves & Surplus |
380.891 |
314.799 |
228.151 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
|
407.591 |
341.499 |
254.851 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2.945 |
23.089 |
40.826 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING
|
2.945 |
23.089 |
40.826 |
|
Deferred Tax Liabilities
|
24.930 |
12.992 |
8.999 |
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|
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TOTAL
|
435.466 |
377.580 |
304.676 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
144.570 |
157.894 |
149.402 |
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Capital work-in-progress
|
0.000 |
0.000 |
1.319 |
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INVESTMENT
|
561.825 |
561.825 |
561.825 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS &
ADVANCES
|
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Inventories
|
36.209 |
54.032 |
89.279 |
|
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Sundry Debtors |
44.008 |
54.505 |
15.672 |
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Cash & Bank Balances
|
56.967 |
90.691 |
62.317 |
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Other Current Assets
|
0.222 |
0.126 |
0.083 |
|
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Loans & Advances
|
217.270 |
198.781 |
149.406 |
Total Current Assets
|
354.676
|
398.135
|
316.757 |
|
Less :
CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
492.200 |
581.113 |
614.273 |
|
|
Provisions
|
133.405 |
159.161
|
110.354 |
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|
|
|
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Total Current Liabilities
|
625.605 |
740.274 |
724.627 |
|
Net Current Assets
|
[270.929] |
[342.139] |
[407.870] |
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|
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MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
435.466 |
377.580 |
304.676 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
903.978 |
1254.552 |
1296.927 |
|
|
Other Income |
70.467 |
61.657 |
29.733 |
|
|
Total Income |
974.445 |
1316.209 |
1326.660 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
94.646 |
123.792 |
99.029 |
|
|
Provision for Taxation |
28.513 |
37.104 |
31.604 |
|
|
Profit/(Loss) After Tax |
66.133 |
86.688 |
67.425 |
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Expenditures : |
|
|
|
|
|
|
Raw Material Consumed |
78.364 |
134.041 |
162.631 |
|
|
Consumption of stores and spares parts |
46.505 |
80.607 |
38.231 |
|
|
Increase/(Decrease) in Finished Goods |
0.028 |
0.112 |
[0.400] |
|
|
Salaries, Wages, Bonus, etc. |
324.642 |
361.066 |
286.150 |
|
|
Managerial Remuneration |
2.754 |
1.738 |
1.542 |
|
|
Payment to Auditors |
0.616 |
0.569 |
0.221 |
|
|
Interest |
1.569 |
2.693 |
9.380 |
|
|
Insurance Expenses |
1.882 |
1.721 |
0.625 |
|
|
Power & Fuel |
36.689 |
44.784 |
29.587 |
|
|
Depreciation & Amortization |
20.840 |
25.685 |
17.669 |
|
|
Other Expenditure |
365.910 |
539.401 |
681.995 |
|
Total
Expenditure |
879.799 |
1192.417 |
1227.631 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
6.78
|
6.59
|
5.08 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.46
|
9.87
|
7.63 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
18.95
|
22.26
|
21.24 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.23
|
0.36
|
0.38 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.54
|
2.24
|
3.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.57
|
0.54
|
0.44 |
LOCAL AGENCY FURTHER INFORMATION
Products/
Services:
·
Technical Engineering Construction
·
Civil Manpower Supply
·
Transportation
OPERATIONS AND OUTLOOK
During the year under report, the gross revenue form Contract works,
Technical services and Transportation Business etc. was Rs. 974.418 Millions
and the Profit after Tax stood at Rs. 66.133 Millions
The Company’s Construction Division has contracts pending execution
aggregating to Rs. 1237.762 Millions as on 31st March 2007, which
are in different stages of completion and are to be executed over a period of 2
years.
CHANGE OF
LOCATION OF REGISTERED OFFICE
As approved by the Shareholders through Postal Ballots, the Registered
Office of the Company was shifted from 5, Park Road, Hazrat Ganj, Luknow-226001
to Sector-128, Noida-201304, within the State of Uttar Pradesh w.e.f 1st
February 2007.
GROUP
For the purposes of Regulation 3(e) of the Securities and Exchange Board
of India. (Substatial Acquisition of Shares and Takeovers) Regulations, 1997,
the ‘GROUP’ constitute Shri Jaiprakash Gaur, hs associates and companies as
disclosed to stock Exchanges from time to time which include Jaiprakash Associates
Limited. Jaypee Hotels Limited, Ironwill Investments Private Limited and Delhi
Forms Private Limited etc.
MANAGEMENT
DISCUSSION AND ANALYSIS
Industry
Structure and developments
The business interest of the Company is in three sectors i.e., construction,
Deployment of Manpower and Transportation. Most of the Company’s clients are
part of the core infrastructure sector, important for growth of the economy
and, in turn, with the growth of the company.
Construction industry has been expanding rapidly. The Construction
industry is the second largest economic activity after agriculture. The
Construction sector today constitutes about 7% of
The company also operates and maintains fleet of trailers for transportation
of cement and other goods.
Opportunities
and Threats
The client(s) other Company, being in the Infrastructure Sector are
participating, in the infrastructural development of the country and have
experience of successfully completing the project. This provides ample
opportunity for further growth of the company.
The growth potential in the construction sector attracts competition.
However, with the expertise, experience and track of the company and its
successful demonstration of execution of various projects, the company does not
forsee any threat to its Construction business.
In view of the ongoing boom in the industry there in an increasing demand
for manpower and transportation services and the Company is prepared to harness
the opportunities and find no immediate threat to these business fields.
Segment wise or
product wise peroformance
The Company is executed various projects including works for development
of part of external services, Golf Curse and Public Park at Jaypee Greens, Greater
Noida, exectution of civil works of Capitive Power Plants at Sidhi (M.P) Chunar
(U.P) and Dalla (U.P). These projects are in various stages of completion and
over a period of time the Company has acquired expertise in the field of
construction.
The turnover of the construction business was Rs. 904.248 Millions in the
financial year ending 31st March 2006 as against the current year
turnover of Rs. 544.046 Millions. The decline in the turnover was due to lower
billing during the current year.
The profits form Deployment of technical manpower has been increased by
39%
The business of transaction of goods has also shown an increase in
turnover from Rs. 52.173 Millions to Rs. 58.168 Millions and as the liability
for the interest on money borrowed for financing of the Trailers is reduced
substantially, the profitability under this segment has also improved
significantly.
The company is optimistic of operating its fleet of trailers at the
optimum level.
Fixed Assets:
·
Goodwill
·
·
·
Buildings
·
Purely Temporary Erections
·
Plant and Machinery
·
Motor Vehicles
·
Furniture and Office Equipments
·
Books and Periodicals
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
|
Indian Rupees |
|
US Dollar |
1 |
Rs.48.50 |
|
|
1 |
Rs.70.02 |
|
Euro |
1 |
Rs.67.95 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
66 |
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 |
|