MIRA
INFORM REPORT
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Report Date : |
30.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
JYOTI STRUCTURES LIMITED |
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Registered Office : |
Valecha Chambers, 5th / 6th Floor, Plot No. B-6, CTS-612, New Link Road, Oshiwara, Andheri (West), Mumbai – 400 053, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
27.05.1974 |
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Com. Reg. No.: |
017494 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMJ09132E |
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PAN No.: [Permanent
Account No.] |
AAACJ2499R |
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Legal Form : |
Subject is a Public Limited Liability Company. The company's shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing of transmission line towers, sub-station structure, tall antenna towers/masts and railway electrification structures. It also undertakes turn-key projects involving survey, foundation, erection and stringing activities of extra high voltage of transmission line in sub stations. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
RATING
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STATUS |
PROPOSED
CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 11032520 |
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Status : |
Very Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established company having satisfactory track records. Directors are reported as experienced, respectable and resourceful businessmen. Their trade relations are fair. Payments are reported as slow by + 30/60 days. The company can be considered normal for business dealings at usual trade terms and conditions with some caution. |
LOCATIONS
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Registered Office /Corporate Office : |
Valecha Chambers, 5th / 6th Floor, Plot No. B-6, CTS-612, New Link Road, Oshiwara, Andheri (West), Mumbai – 400 053, Maharashtra, INDIA |
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Tel. No.: |
91-22- 56915000 / 26312510 / 16 / 17 / 2539 / 2554 / 26324169/ 40915000 |
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Fax No.: |
91-22-26310379 / 56915014 / 15/ 66915014/ 40915014/15 |
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E-Mail : |
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Website : |
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Administrative Office: |
Keshava, 7th Floor, Bandra - Kurla Commercial Complex, Bandra (East), Mumbai - 400 051, Maharashtra |
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Tel. No.: |
91-22-26429613 |
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Fax No.: |
91-22-26429872 |
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Plant 1 : |
NASIK FACTORY : 52A/53A, D. Road, Satpur Industrial Complex, Nasik - 422 007, Maharashtra |
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Tel. No.: |
91-253-2351091-4 |
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Fax No.: |
91-253-2351134 |
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Plant 2 : |
Nasik Operations Office H/37, Shivaji Nagar, MIDC, Nasik - 422 007, Maharashtra |
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Tel. No.: |
91-253-2360050 |
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Fax No.: |
91-253-2361841 |
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Plant 3 : |
Tower Testing Station Ghoti, Igatpuri, District Nasik - 422 002, Maharashtra |
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Tel. No.: |
91-2553-282211 |
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Fax No.: |
91-2553-282212 |
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Plant 4 : |
Raipur Factory 1037/1056, Sarora Ring Road, Urla Industrial Complex, Raipur - 493 221, Chhatisgarh |
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Tel. No.: |
91-771-2324567 |
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Fax No.: |
91-771-2324767 |
DIRECTORS
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Name : |
Mr. M. P. Tejwani |
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Designation : |
Chairman |
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Date of Birth/Age : |
30.04.1933 |
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Qualification : |
M. A., Sc., CAIIB |
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Experience : |
48 Years in Banking, Finance and Corporate Affairs. |
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Other Directorships |
· Rama Capital and Fiscal Services Limited · Premium Financial Services Limited · Trishul Mercantile Private Limited · Rainbow Agri Industries Limited · Goodearth Credit & Investment Limited · Rainbow Denim Limited |
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Name : |
Mr. S. H. Mirchandani |
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Designation : |
Director |
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Date of Birth/Age : |
07.03.1965 |
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Qualification : |
B. e. (Mech)., MBA (Financial) |
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Experience : |
He has varied business experiences of running a trading firm in Dubai, a real estate company in Mumbai and Pune. |
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Other Directorships |
· Shalimar Housing and Finance Limited · Seagull Solutions Limited |
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Name : |
Mr. K. R. Thakur |
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Designation : |
Managing Director |
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Date of Birth/Age : |
13.11.1942 |
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Qualification : |
B.E. (Mech.) |
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Experience : |
Overall 40 years out of which 26 years in Transmission Line Industry. |
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Date of Appointment : |
01.04.2004 |
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Other Directorships |
· JSL Corporate Services Limited · Shree Chhaterapati Shahu Power Company Limited · Valmir Constructions Private Limited |
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Name : |
Mr. S. D. Kulkarni |
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Designation : |
Chairman |
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Name : |
Mr. G. L .Valecha |
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Designation : |
Director |
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Date of Birth/Age : |
08.05.1932 |
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Qualification : |
B.A. |
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Date of Appointment : |
26.04.2003 |
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Experience : |
He has varied experience in construction industry and with acumen in Finance. |
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Other Directorships : |
Gopaldas Vasudev Construction Company Private Limited |
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Name : |
Mr. S. H. Mirchandani |
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Designation : |
Director |
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Date of Birth/Age : |
07.03.1995 |
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Qualification : |
B.E.(Mech), M.B.A.(Finance) |
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Date of Appointment : |
29.05.2001 |
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Experience : |
He has varied business experience of running a trading firm in Dubai, a real estate company in Bhopal & Pune |
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Other Directorships : |
Shalimar Housing & Finance Limited Seagull Solutions Limited |
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Name : |
Mr. S. D. Kshirsagar |
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Designation : |
Chairman |
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Name : |
Mr. A. J. Khan |
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Designation : |
Director |
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Name : |
Mr. P. K. Thakur |
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Designation : |
Director |
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Date of Birth/Age : |
34 Years |
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Qualification : |
B.E., MBA |
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Experience : |
78Years |
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Date of Appointment : |
1996 |
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Previous Employment |
AES Transpower |
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Name : |
Mr. P A Sethi |
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Designation : |
Director |
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Date of Birth/Age : |
19.10.1944 |
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Qualification : |
B.Com, C.A.I.I.B, P. G. Diploma (Costing and Management Accounting) |
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Date of Appointment : |
24.01.2006 |
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Experience : |
He has varied experience in Banking Industry for more than 40 years and has held key positions in his career. |
KEY EXECUTIVES
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Name : |
Mr. L. H. Khilnani |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.03.2007)
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters: |
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Individuals |
16060875 |
19.91 |
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Bodies Corporate |
6541120 |
8.11 |
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Other Bodies
Corporate |
8702002 |
10.78 |
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NRIs/FIIs |
25132078 |
31.14 |
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Financial Institutions/Banks/Mutual Fund |
12007073 |
14.88 |
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Indian Public |
12252742 |
15.18 |
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TOTAL |
80695890 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of transmission line towers, sub-station structure, tall antenna towers/masts and railway electrification structures. It also undertakes turn-key projects involving survey, foundation, erection and stringing activities of extra high voltage of transmission line in sub stations. |
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Products : |
Generic Names of the Principal Products/Services of the company are :-
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PRODUCTION STATUS
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Particulars |
Unit |
Installed Capacity |
Actual Production |
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Transmission Lines, Towers & Structures |
MT |
76000 |
61192 |
GENERAL
INFORMATION
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Customers : |
v Tata International Limited v Societe d'energie de la Baie James v U. P. Power Corporation Limited v Kilpatrick Green Pty. Limited v Northeast China Electric Power Import & Export Corporation (NEIE) v ABB Engineering Construction Pty. Limited v The National Grid Company plc., U.K. v Bureau Veritas v Maharashtra State Electricity Board |
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No. of Employees : |
950 |
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Bankers : |
v State Bank of India v Bank of India v Axis Bank Limited v Indus Ind Bank Limited v ICICI Banking Corporation Limited v Global Trust Bank Limited v Oriental Bank of Commerce v Canara Bank v Bank Muscat v Exim Bank of India v Bank of Maharastra v Dena Bank v ICICI Bank Limited v Indian Bank v State Bank of Indore v Syndicate Bank v UCO Bank v Union Bank of India v State Bank of Hyderabad v IL & FS v Industrial Development Bank of India Limited |
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Facilities : |
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Banking Relations
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Good |
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Auditors : |
R. M. Ajgaonkar & Company Chartered Accountants |
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Subsidiaries : |
v JSL Refractories Limited v JSL Corporate Services Limited v JSL Finance Limited v Shree Chhatrapati Shahu Power Company Limited |
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Associates: |
v Val-Mir Construction Private Limited - No transactions during the year. v Jyoti Acqua Culture Private Limited v Gulf Jyoti International LLC |
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Membership: |
v Confederation of Indian Industry |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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150,000,000 |
Equity Shares |
Rs. 2/- Each |
Rs. 300.000 millions |
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5,000,000 |
Redeemable Preference Shares |
Rs. 100/- Each |
Rs. 500.000 millions |
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TOTAL |
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Rs. 800.000 millions |
Issued Capital :
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No. of Shares |
Type |
Value |
Amount |
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80,711,150 |
Equity Shares |
Rs. 2/- Each |
Rs. 161.420 millions |
Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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80,695,890 |
Equity Shares |
Rs. 2/- Each |
Rs. 161.390 millions |
Notes:
Of the above
shares:
a) 13505 Equity Shares of Rs. 100/- each was
the paid-up capital of the Company as on 31.03.1986.
b) 6753 Equity Shares of Rs. 100/- each were allotted
as fully paid up Bonus Shares by way of capitalization of General Reserve in
the year 1986-87.
c) 25387 Equity Shares of Rs. 100/- each were
allotted as fully paid up for cash at par on Rights basis, in the year 1986-87.
d) 24688 Equity Shares of Rs. 100/- each were
allotted as fully paid up for cash at par on Rights basis, in the year 1988-89.
e) 920000(Equity Shares of Rs. 10/- each were
allotted as fully paid up for cash at a Premium of Rs. 5/- per share to Public,
(including 40000 Equity Shares allotted to the employees of the Company) in the
year 1989-90.
f) 1651330 Equity Shares of Rs. 10/- each were
allotted as fully paid up for cash ata a Premium of Rs. 25/- per share on Rights
basis. (including 28000 Equity Shares allotted to the employees of the Company)
in the year 1992-93.
g) 1637330 Equity Shares of Rs. 10/- each were
allotted as fully paid up Bonus Shares by way of capitalization out of Share
Premium in the year 1994-95.
h) 4908938 Equity Shares of Rs. 10/- each were
allotted as fully paid up for cash at a Premium of Rs. 25/- per share on Right
basis (including 251345 Equity Shares allotted to the employees of the Company)
in the year 2000-01.
i) 2000000 Equity Shares of Rs. 10/- each were
allotted as fully paid up for cash at a Premium of Rs. 37/- per share on
Private Placement in the year 2003-04.
j) 2000000 Equity Shares of Rs. 10/- each were
allotted as fully paid up for cash at a Premium of Rs. 101/- per share on
Private Placement in the year 2004-05
k) 1550000 Equity Shares of Rs. 10/- each were
allotted as fully paid up for cash at a Premium of Rs. 562- per share on
Private Placement in the year 2006-07
l) On 4th August, 2008 the Company
subdivided one Equity Shares of the face value Rs. 10/- to five shares of Rs.
2/- each.
m) 3500000 Equity Shares of Rs. 2/- each were
allotted as fully paid-up for cash at a Premium of Rs. 38.50 per share to
Promoters in the year 2006-07.
n)341250 Equity Shares of Rs. 2/- each were
allotted as fully paid-up for cash at a Premium of Rs. 15/- per share to the
eligible employees under the Employees Stock Option Scheme in the year
2006-07.
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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1] Share Capital |
161.390 |
138.209 |
138.209 |
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2] Share
Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves &
Surplus |
2596.740 |
1063.218 |
806.006 |
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4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
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5] Share Warrants
: Up-Front Price |
0.000 |
14.700 |
0.000 |
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NETWORTH
|
2758.130 |
1216.127 |
944.215 |
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LOAN FUNDS |
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1] Secured Loans |
1514.790 |
1203.277 |
853.989 |
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2] Unsecured
Loans |
80.170 |
406.016 |
265.401 |
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TOTAL BORROWING
|
1594.960 |
1609.293 |
1119.390 |
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DEFERRED TAX
LIABILITIES |
76.800 |
77.653 |
68.757 |
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TOTAL
|
4429.890 |
2903.073 |
2132.362 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
561.470 |
531.144 |
425.892 |
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Capital work-in-progress
|
1.920 |
15.091 |
15.158 |
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INVESTMENT
|
185.100 |
165.691 |
87.058 |
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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
|
763.450 |
914.940 |
523.721 |
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Sundry Debtors
|
3634.960 |
1837.768 |
1507.133 |
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Cash & Bank Balances
|
92.350 |
538.547 |
473.487 |
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Other Current Assets
|
905.190 |
171.402 |
160.876 |
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Loans & Advances
|
1064.780 |
525.590 |
328.847 |
Total Current Assets
|
6460.73 |
4888.800 |
3988.247 |
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Less :
CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
|
2607.060 |
2276.521 |
1932.452 |
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Provisions
|
196.120 |
109.654 |
34.602 |
Total Current Liabilities
|
2803.180 |
2698.744 |
2386.175 |
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Net Current Assets
|
3657.550 |
2190.056 |
1602.072 |
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MISCELLANEOUS EXPENSES
|
23.850 |
1.091 |
2.182 |
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TOTAL
|
4429.890 |
2903.073 |
2132.362 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
Sales
|
10249.800 |
7380.636 |
4396.124 |
Other Income
|
8.210 |
20.902 |
4.725 |
Total Income
|
10258.010 |
7401.538 |
4400.849 |
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Profit/(Loss) Before Tax
|
875.070 |
461.983 |
181.135 |
Provision for Taxation
|
329.730 |
185.296 |
65.829 |
Profit/(Loss) After Tax
|
545.340 |
276.687 |
115.306 |
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Earnings in
Foreign Currency : |
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Earnings (including Deemed
Exports and sales through Export House)
|
809.930 |
989.038 |
918.283 |
Expenditure – Travelling and
Others
|
18.380 |
5.668 |
7.389 |
Overseas Projects
|
11.240 |
112.877 |
106.372 |
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Total Earnings |
839.550 |
1107.583 |
1032.044 |
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Imports : |
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Capital Goods
|
0.000 |
90.140 |
4.568 |
Raw Materials
|
378.290 |
521.415 |
135.308 |
Spare Parts
|
0.840 |
0.000 |
0.648 |
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Total Imports |
379.130 |
611.555 |
140.524 |
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Expenditures : |
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Cost of Materials
Consumed |
5440.580 |
4448.550 |
2905.731 |
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Operating and
Other Expenses |
1406.760 |
1092.544 |
572.531 |
|
Personnel
Expenses |
266.500 |
185.227 |
142.510 |
|
Interest &
Financial Charges |
328.870 |
258.432 |
194.694 |
|
Depreciation |
58.160 |
48.383 |
39.301 |
|
Erection and
subcontracting expenses |
1440.700 |
1093.821 |
522.420 |
|
(Increase) /
Decrease in stock of finished / Semi-Finished goods |
441.370 |
(187.362) |
(157.473) |
|
Total Expenditure |
9382.940
|
6939.555 |
4219.714 |
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 1st
Quarter |
30.09.2007 2nd
Quarter |
31.12.2007 3rd
Quarter |
31.03.2008 4th
Quarter |
|
Sales Turnover |
2966.500 |
3181.500 |
3455.300 |
4100.600 |
|
Other Income |
0.900 |
4.000 |
4.000 |
6.300 |
|
Total Income |
2967.400 |
3185.500 |
3459.300 |
4106.900 |
|
Total Expenditure |
2599.300 |
2783.200 |
3017.600 |
3585.100 |
|
Operating Profit |
368.100 |
402.300 |
441.700 |
521.800 |
|
Interest |
95.400 |
106.200 |
105.300 |
157.400 |
|
Gross Profit |
272.700 |
296.100 |
336.400 |
364.400 |
|
Depreciation |
16.300 |
15.800 |
16.700 |
18.200 |
|
Tax |
95.700 |
110.400 |
118.200 |
150.200 |
|
Reported PAT |
160.300 |
169.700 |
201.500 |
192.600 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.81 |
1.27 |
1.26 |
|
Long Term Debt-Equity Ratio |
0.20 |
0.52 |
0.54 |
|
Current Ratio |
1.40 |
1.30 |
1.25 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
11.45 |
9.40 |
6.41 |
|
Inventory |
10.37 |
6.94 |
6.11 |
|
Debtors |
3.35 |
3.41 |
2.63 |
|
Interest Cover Ratio |
2.90 |
2.21 |
1.65 |
|
Operating Profit Margin(%) |
13.60 |
12.07 |
11.35 |
|
Profit Before Interest And Tax Margin(%) |
13.03 |
11.42 |
10.46 |
|
Cash Profit Margin(%) |
5.94 |
4.40 |
3.52 |
|
Adjusted Net Profit Margin(%) |
5.37 |
3.75 |
2.62 |
|
Return On Capital Employed(%) |
37.42 |
34.60 |
26.00 |
|
Return On Net Worth(%) |
27.79 |
25.79 |
14.69 |
LOCAL AGENCY FURTHER
INFORMATION
The company is in trade terms with the following:
v Automatic Electronics Private Limited
v Balaji Steel Works
v Bhagwati Industries
v Dharia Engineers
v Pokar Enterprises
v Galaxy Cable Industries
v Industrial Polymers
v Nike Industries
v EMI Transmission Limited
v Punjab Auto Industries Private Limited
v Plaza Cable Industries
v R. P. Engineering Works
v Reliance Engineering Company
v Shree Bajrang Alloys
v Trans Accessories
v Venson Electric
v Z. M. Engineering Works
v Shree Radha Krishna Steel
The company’s fixed assets of important value includes land, buildings, plant & machinery, leased assets, furniture & fixtures, office equipments, air conditioners & water coolers and vehicles.
CAPITAL
Effective 4th August, 2006, one equity share of the face value of Rs.10
each was sub-divided into five equity shares of the face value of Rs.2 each.
During the year, the Company:
i. Allotted 1,550,000 Equity Shares of Rs.10 each to the FIIs and Mutual Funds
on private placement basis.
ii. Allotted 3,500,000 Equity Shares of Rs.2 each, arising on conversion
of 700,000 warrants of Rs.10 each, allotted to the promoters of the Company on
preferential basis.
iii. Allotted 341,250 Equity Shares of Rs. 2 each to the Employees
pursuant to Employees Stock Option Scheme.
OPERATIONS
For the year, the Company continued to maintain the growth
momentum in top as well as bottom line. The turnover registered a growth of 39%
to Rs.10250.000 millions. The profit after tax has gone up by 92% to Rs.550.000
millions. This increase in profit arose from higher sales volume, improved
project management, better realisation and effective costs control
system.
OPPORTUNITIES
Demand for power continues to grow. Looking into the future,
the demand and availability of generation resources, the government has drawn a
transmission plan to develop an inter-regional transmission grid.
With announcement of providing electricity to all areas in rural India,
both Central and State Governments would jointly endeavour to achieve this
objective at the earliest.
Considering the scale of investment and volume of expansion required in
transmission and distribution sector, the Government of India has framed
guidelines for private sector participation through joint ventures and
Independent Power Transmission Corporation route, including 100% investment for
investors coming through FDI.
The development in the transmission sector would provide ample opportunities to
the Company for maintaining the growth momentum in the coming years.
SUBSIDIARIES
The Central Government in exercise of the power conferred by
Section 212 (8) of the Companies Act, 1956 has accorded its approval for
exemption from attaching the accounts of subsidiaries to the Balance Sheet of
the Company.
The Company shall provide copies of the Annual Report and other documents of
its subsidiary companies as required under Section 212 of the Act to the
members on their request, free of cost.
JSL
Structures Limited:
During the year, the name of the Company was changed from JSL Refractories
Limited to JSL Structures Limited.
Sales and Income from operations during the year 2006-07 was Rs.48.330 millions
as against Rs.15.780 millions for the corresponding previous financial year.
With change in business operations, the Company has reported profit of Rs.6.870
millions, as against loss of Rs.18.990 millions for the corresponding previous
financial year.
JSL Corporate Services Limited:
For the year, no business was transacted in this Company.
Shree Chhatrapati Shahu Power Company
Limited:
During the year, the Company has earned income by way of commission of Rs.4.820
millions as against commission of Rs.3.400 millions for the corresponding
previous financial year.
JOINT VENTURE
During the year, the Company has further invested Rs.40.65
million in Gulf Jyoti International LLC, a joint venture with Gulf Investment
Corporation.
The
manufacturing facilities in Dubai will be completed in second quarter and the
trial production will commence thereafter.
MANAGEMENT
DISCUSSION AND ANALYSIS:
INDUSTRY
STRUCTURE AND DEVELOPMENTS:
The Indian power sector, led by reforms across generation,
transmission and distribution segments, is set to post high growth.
To address the grim power scenario and tackle power deficit on basis, the
government has plans to raise the generating capacity to 200,000 MW by the year
2012. The increase in generation capacity would call for an increase in
transmission capacity for effective evacuation of power.
With this, power companies across the segments - generation, transmission,
distribution and equipment manufactures would find ample business opportunities
for at least next three years. The Companies having financial strength, strong
technology platform and project execution skills and capabilities, would have
edge over their competitors to seize the opportunities.
OPPORTUNITIES:
Demand for power continues to grow. Looking into the future, the demand and
availability of generation resources, the government has drawn a transmission
plan to develop an inter-regional transmission grid.
With announcement of providing electricity to all areas in rural India, both
Central and State Governments would jointly endeavour to achieve this objective
at the earliest.
Considering the scale of investment and volume of expansion required in
transmission and distribution sector, the Government of India has framed
guidelines for private sector participation through joint ventures and Independent
Power Transmission Corporation route, including 100% investment for investors
coming through FDI.
The development in the transmission sector would provide ample opportunities to
the Company for maintaining the growth momentum in the coming years.
OUTLOOK:
The Company is on a continual growth path since 2003. With proven financial
performance coupled with strong project execution capabilities, the Company is
well placed to maintain its growth momentum. It is also expected to generate
higher revenues from business opportunities available under rural
electrification
PROVISIONS AND
CONTINGENCIES:
i) A provision is recognized when there is present obligation as a
result of past even and it is probable that an outflow of resources will be
required to settle the obligation, in respect of which a reliable estimate can
be made. Provisions are reviewed at each Balance Sheet date and adjusted to
reflect the current best estimate.
ii) A disclosure for a contingent liability is made when there is a
possible or present obligation that may but probably will not require an
outflow of resources. When there is a possible obligation in respect of which
the likehood of outflow of resources is remote, no provision or disclosure is
made.
CONTINGENT
LIABILITIES NOT PROVIDED FOR:
a) Outstanding Performance Guarantees given by banks are Rs. 3208.61
Million (P.Y. Rs. 1392.09 Million).
b) Claims against Company / Disputed Liabilities not acknowledged as
debts are Rs. 40.73 Million (P.Y. Rs. 35.66 Million).
c) Liability against facility availed from EXIM Bank – Nil (P.Y. Rs.
0.18 Million).
NOTES:
Company has not made any provision for diminution in value of shares of
JSL Structures Limited held by it and also by its owned subsidiary company due
to erosion of net worth on account of losses. JSL Structures Limited has made
profit during the financial year 2006-07. The Company further expects JSL
Structures Limited to make profits in the years to come, in the business of
manufacturing transmission line towers, and hence diminution in value is
considered to be temporary.
The Company had invested Rs. 3.90 Million in JSL Power Projects SDN.
BHD., Malaysia. As that company viz. JSL Power Projects SDN. BHD has lost its net
worth, full provisions for the same was made in the accounts. In the current
year the investment is written off from the books.
The terms and conditions of various contracts being executed by the
Company provide for clauses in respect of liquidated damages applicable for any
delay in completion of the whole or a portion of the contracts. In case of a
few contracts, where there have been such delays in completion of the
contracts, the Company is currently negotiating with its customers for an
extension of time for the delays attributable to customers to complete the
contracts. It is currently uncertain as to whether the customers would grant
the required extension of time and hence, the quantum of liquidated damages is
also uncertain. As per the past experience, where the delays are due to reasons
beyond the control of the Company. The approvals for time extensions are
normally received from customers, which sometimes takes more than reasonable
time. As such, no provision on this account has been made in the books of
account.
The Company had lodged its claim with BIFR for recovery of outstanding
loans and advances due from Varun
Cements Limited amounting to Rs. 9.15 Million. During the year the
Company has written of the amount due, as the recovery of debt was outstanding
for a long time and it was not able to ascertain when the amount could be
recovered.
The Company has advanced a total net sum of Rs. 47.020 Millions (P.Y.
Rs. 47.750 Millions) to its subsidiary company, JSL Structures Limited as of 31st
March, 2007. The Company has substantial accumulated losses. However, no
provisions is made by the company as it expects JSL Structures Limited to make
profits in the years to come. For the year ended 31st March 2007,
JSL Structures Limited has made profit and the trend is expected to continue.
The names of small scale industrial undertakings to whom the Company
owes a sum, for more than 30 days are Amar Industries, Digvijay Industries,
Indo Tech Industries, Jyoti Agencies, Manmeet Industries, Nike Industries,
Onkar Nath Rajeev Gupta, P.B. Electronic and Fasteners, Ganesh Plywood and
Timber, M M Traders and Manufacturers, Nasik Oxygen Company Private Limited,
Neha Engineering, Petro Synth (I) Private Limited, Century Crane Engineers
Private Limited.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
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.42.77 |
|
UK Pound |
1 |
Rs.84.33 |
|
Euro |
1 |
Rs.66.65 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
72 |
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 |
|