MIRA
INFORM REPORT
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Report Date : |
21.10.2008 |
IDENTIFICATION DETAILS
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Name : |
JCB MANUFACTURING LIMITED |
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Registered Office : |
Talegaon Floriculture and Industrial Park, Village AMBI, Navlakh
Umbhre, Tal Maval, Talegaon Dabhade-410507, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
21.06.2004 |
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Com. Reg. No.: |
147067 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PNEJ05124A |
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Legal Form : |
A Closely held Public Limited Liability Company |
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Line of Business : |
Manufacturers of Construction Industrial Machine and Agriculture
Tools. |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is relatively small company having moderate track.
Profitability is under severe pressure. It has some accumulated losses.
Payments are reported as slow and delayed. The company can be considered for business dealings with slight
caution. |
INFORMATION PARTED BY
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Name : |
Mr. Ashish Kumar |
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Designation : |
Accountant |
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Date : |
20.10.2008 |
LOCATIONS
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Registered Office : |
Talegaon Floriculture and Industrial Park, Village AMBI, Navlakh
Umbhre, Taluka Maval, Talegaon Dabhade-410507, |
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Tel. No.: |
91-2114-304000 / 56691393 |
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Fax No.: |
91-2114-304021/2/ 56339656 |
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E-Mail : |
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Area: |
100 acre (Owned) |
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Factory : |
43, Plot No. A and B, Akrudi, Talegaon Floculture and Industrial Park,
Talegaon, Pune-410507, |
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Tel No.: |
91-20-641013324 |
DIRECTORS
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Name : |
Mr. Alan Thomson |
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Designation : |
Managing Director |
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Address: |
Bunglow No. 445, Lane 4, Sindh Housing Society Limited, |
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Date of Birth: |
11.01.1960 |
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Previous Employment : |
JCB India Limited |
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Name : |
Mr. John Smith |
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Designation : |
Head- Operations |
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Experience : |
41 years |
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Date of Appointment : |
01.06.2004 |
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Previous Employment : |
JC Bamford Excavators Limited, |
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Name : |
Mr. Deniel Butler |
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Designation : |
Head |
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Date of Birth/Age : |
35 years |
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Experience : |
12 years |
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Date of Appointment : |
01.11.2004 |
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Previous Employment : |
JC Bamford Excavators Limited, |
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Name : |
Mr. Ray Adama |
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Designation : |
Supervisor – Quality and Training |
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Date of Birth/Age : |
34 years |
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Date of Appointment : |
01.07.2004 |
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Previous Employment : |
JC Bamford Excavators Limited, |
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Name : |
Mr. Michael Hargreaves |
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Designation : |
Additional Director |
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Address: |
16, |
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Date of Birth: |
01.03.1957 |
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Previous Employment : |
26.06.2007 |
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Name : |
Mr. Subramaniam Ramaswamy |
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Designation : |
Alternate Director |
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Address: |
Flat No. 105, Gharonda Housing Society, GH-06, Alpha-1, Greater
Noida,-201306, |
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Date of Birth: |
15.04.1962 |
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Previous Employment : |
01.10.2008 |
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Name : |
Mr. Vipin Sondhi |
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Designation : |
Additional Director |
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Address: |
N-43, |
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Date of Birth: |
27.04.1960 |
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Previous Employment : |
01.02.2008 |
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Name : |
Mr. John Pattterson |
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Designation : |
Chairman |
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Address: |
Rollestone Grance, Lodge Hill, Tutbury, |
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Date of Birth: |
19.10.1949 |
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Previous Employment : |
21.06.2004 |
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Name : |
Mr. Mansingh Bhakta |
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Designation : |
Director |
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Address: |
4, Sagar Villa, 38 B, |
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Date of Birth: |
03.12.1931 |
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Previous Employment : |
21.06.2004 |
KEY EXECUTIVES
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Name : |
Mr. Sandeep Maniyar |
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Designation : |
Secretary |
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Address : |
402, Daisy, Nyati Meadows, Near Bishop’s Co-ED School, Kalyaningar,
Pune-411014, Maharashtra, India |
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Date of Birth/Age : |
02.10.1974 |
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Date of Appointment : |
30.09.2005 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.10.2007
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Names of Shareholders |
|
No. of Shares |
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JCB Mauritius Limited |
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4994 |
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M.S Jo Teanby ( Nominee of JCB Mauritius Limited) |
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01 |
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01 |
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David F Miller ( Nominee of JCB Mauritius Limited) |
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01 |
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Adrian Ross (Nominee of JCB Mauritius Limited) |
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01 |
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Steven E Robert Ovens (Nominee of JCB Mauritius Limited) |
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01 |
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Michael Hargreaves ( Nominee of JCB Mauritius Limited) |
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01 |
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Total |
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5000 |
Equity Share Breakup (Percentage of Total Equity)
As on 30.10.2007
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Category |
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Percentage |
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Foreign Holdings (FIIs / FCs/ FFIs NRIs/ OCBs) |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Construction Industrial Machine and Agriculture
Tools. |
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Products : |
v
Agricultural
Products v
Construction
Products v
Construction
Equipments
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Exports : |
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Countries : |
European Countries |
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Imports : |
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Countries : |
Mainly from |
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Terms : |
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Selling : |
L/C , Cash and Credit |
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Purchasing : |
L/C, Cash and Credit |
GENERAL INFORMATION
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No. of Employees : |
800 |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Price Waterhouse Chartered Accountant |
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Address : |
P-1, Aditya Vihar, Saidulajab, Opposite D – Block, Saket, Mehrauli
Badarpur Road, Delhi-110030, India |
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Address: |
305/306/307, Century Aracade, 243-244, B/2, Narangi Baug Road, Off
Boat Culb Road, Pune-411001, Maharashtra, India |
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Holding Company |
JCB India Limited U74899DL1979PLC009431 JCB Mauritius Limited |
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Associates/Subsidiaries : |
·
JC Bamford Excavators Limited, ·
JC Bamford Limited ·
JCB India Limited (Fellow Subsidiary from August
1st , 2006 to August 10th 2006) ·
JCB India Limited ( From August 10th
2006 enterprise which is in the same ultimate beneficial ownership and with
which the company has transaction during the year) ·
JCB Heavy Products Limited ·
JCB Sales Limited ·
JCB Compact Products Limited ·
JCB Materials Handling Limited ·
JCB Cab Systems Limited ·
JCB Landpower Limited ·
JCB Service ·
JCB Earthmovers Limited ·
JCB Research. |
CAPITAL STRUCTURE
As on 31.03.2007
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10000 |
Equity Shares |
Rs. 100/- each |
Rs.1.000 million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5000 |
Equity Shares |
Rs. 100/-
each |
Rs.0.500
million |
Notes:
1) Of the above 4994 (Previous Year Nil) equity shares of Rs. 100 each are
held by JCB Mauritius Limited, the holding company
2) Change in shareholding pattern: (For holding company)
-
JCB India Limited kupto
July 31st 2006
-
JCB Service Work form
August 1st 2006 at August 10th 2006
-
Transmission ands
Engineering Services,
-
JCB Mauritius Limited
With effect from August 10th 2006
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 |
0.500 |
0.500 |
0.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
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4] (Accumulated Losses) |
[944.918] |
[289.013] |
(46.884) |
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NETWORTH |
[944.418] |
[288.513] |
(46.384) |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
3379.000 |
1548.500 |
411.953 |
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TOTAL BORROWING |
3379.000 |
1548.500 |
411.953 |
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DEFERRED TAX LIABILITIES |
11.221 |
11.220 |
0.000 |
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TOTAL |
2445.803 |
1271.207 |
365.569 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1898.926 |
719.584 |
92.343 |
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Capital work-in-progress |
56.627 |
482.553 |
284.952 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
625.388
|
69.872 |
0.000 |
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Sundry Debtors |
763.129
|
118.841 |
0.000 |
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Cash & Bank Balances |
65.329
|
153.999 |
39.795 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
265.772
|
44.235 |
9.271 |
|
Total
Current Assets |
1719.618
|
386.947 |
49.066 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
1218.257
|
317.590 |
60.581 |
|
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Provisions |
11.111
|
0.287 |
0.211 |
|
Total
Current Liabilities |
1229.368
|
317.877 |
60.792 |
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Net Current Assets |
490.250
|
69.070 |
(11.726) |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
2445.803 |
1271.207 |
365.569 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
1867.206 |
202.965 |
0.058 |
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Other Income |
126.343 |
8.513 |
0.000 |
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Total Income |
1993.549 |
211.478 |
0.058 |
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Profit/(Loss) Before Tax |
[649.780] |
[229.338] |
(46.821) |
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|
Provision for Taxation |
6.125 |
471.467] |
0.063 |
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Profit/(Loss) After Tax |
[655.905] |
[242.129] |
(46.884) |
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Expenditures : |
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|
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Manufacturing Expenses |
300.915 |
46.149 |
0.000 |
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|
Salaries, wages and Bonus |
0.000 |
0.000 |
16.044 |
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|
Employees Cost |
267.411 |
62.961 |
0.000 |
|
|
Administration and other Expenses |
288.341 |
92.111 |
0.000 |
|
|
Finance Cost |
189.013 |
61.735 |
11.124 |
|
|
Raw Material Consumed |
1650.778 |
159.427 |
0.000 |
|
|
Increase/(Decrease) in Finished Goods |
[158.597] |
[20.432] |
0.000 |
|
|
Depreciation & Amortization |
105.468 |
38.865 |
3.333 |
|
|
Other Expenditure |
0.000 |
0.000 |
16.379 |
|
Total Expenditure |
2643.329 |
440.816 |
46.880 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
[32.90]
|
[114.49] |
(80834.48) |
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Net Profit Margin (PBT/Sales) |
(%) |
[34.79]
|
[112.99] |
(80725.86) |
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Return on Total Assets (PBT/Total Assets} |
(%) |
[17.95]
|
[20.73] |
(33.11) |
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Return on Investment (ROI) (PBT/Networth) |
|
[0.68]
|
[0.79] |
(0.01) |
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Debt Equity Ratio (Total Liability/Networth) |
|
[4.88]
|
[6.46] |
(10.19) |
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Current Ratio (Current Asset/Current Liability) |
|
1.39
|
1.22 |
0.81 |
LOCAL AGENCY FURTHER INFORMATION
The Registered office of the company has been shifted from Readymoney
Mansions 43,
YEAR IN RETROSPECT
The Plant built in the previous year working
as an Export Oriented Unit ( Plant 1) was officially inaugurated on 4th
September 2006, by Hon. David Cameron, MP, and Mr. George Osbourne, MP,
As a part of expansion and diversification
plan, the company has built one more manufacturing plant (Plant II) adjacent to
existing Plant I For assembling earth Moving Machineries. Plant II has started
its manufacturing actgivity form October 2006 and has introduced two models of
excavators namely JS 200 and JS 210. Excavators manufactured by Plant II are
well accepted in the domestic and export markets. Plant 2 produced 143 nos of
excavators during the year, and the total sales value form Plant II was Rs.
495.414 Millions including FOB value of Exports of Rs. 18.276 Millions. The
Machines in domestic market are sold to JCB India Limited. Considering the
growing demand for excavators in the domestic market due to Government of India
allocating more funds to infrastructure development and expected Indian growth
in GDP of more than 8% in the years to come and the cos competitiveness of
Indian built earth moving machineries in the International market, the company
has plans to expand the range of excavators and other construction equipments
manufactured by Plant II in the domestic and international markets. The new
models of excavators like JS 80 and JS 140, Wheeled Loading Shoved 432 ZX,
Vibromax Road Compactors VM115 etc are being introduced in the current year
ending March 2008.
The company has built a design centre during
the year adjacent to Plant II with a maximum capacity up to 100 designers for
taking the advantage of vast pool of talented designers and engineers available
at competitive cost in
During the year, the company has implemented
SAP, and Enterprise Resource Planning (ERP) system, in view of growing business
volume of the company. The system is getting satabilized.
The total Net Sales of the company for the
year were Rs. 1867.206 Millions as against Rs. 202.965 Millions for the
previous year, registration a robust growth fo 819% in the very second year of
its commercial operations. While building new capacities, expanding the
existing capacities and implementing diversification plans, the company in the
initial stages of the implementation of the said projects has incurred a Loss
before tax (after interest and depreciation charges) of Rs. 649.779 Millions
and Loss after tax of Rs. 655.904 Millions for the year as against Rs. 229.337
Millions and Rs. 242.129 Millions respectively for the previous year. It is
important to note that the percentage of Loss before Tax to Net Sales has
substantially reduced to 35% during the year as against 113% during the
previous year. The main reasons for increase in losses in absolute terms are :-
·
Sales Volumes though increased
over the previous year; were below the break-even levels of increased
manufacturing capacities during the year. This was due to normal gestation
period required for scalling up opf the projects at the desired level
·
Variable costs like
consumables, direct labour etc. were higher since manufacturing systems are in
the process of development and stabilization
·
The cost of self of power
is higher as compared to power supplied by Maharashtra State Board (MSEB).
Presently, the company is heavily dependent on the self of power.
The company has initiated many operational
improvements such as localization of components, additional power supply from
Maharashtra State Electricity Board ( MSEB). Better capacity utilization of
Plant I through domestic sales ad per applicable rules and improvement in
overall productivity. All these steps are expected to improve the profitability
of the company.
Company’s future strategies and direction
continue to revolve around its mission i.e. to exceed customer expectation through
innovation, continuous improvements in quality and cost and people involvement.
Company is focused on developing its employees
by imparting the in-house, out-side training course which has been helping to
meet International quality norms. As a result; the products manufactured by the
company are as per International quality norms.
CORPORATE SOCIAL RESPONSIBILITY ( CSR) :-
The company along with the Lady Bamford
Charitable Trust (LBCT) has adopted
LBCT has undertaken several initiatives as
detailed below to raise the standards of living and well being of Ambi’s
inhabitants:
·
Education:-
Additional classrooms were constructed.
Supplemental classes were constructed in English language as well as computer
for which three teachers were inducted by LBCT with the cooperation of the
school authorities.
·
Health and Hygiene:
Responding to the needs of the villagers, more
than hundred personal toilets were constructed and provided to th beneficiaries
on a cost sharing basis.
About five hundred villagers benefited form a
health check up camps organized by the Company along with the local hospital.
Necessary treatments and medications were also provided.
Around thirty villagers were trained in health
and hygiene awareness to spread the message.
·
Skill Development and Income Generation Scheme:-
The surrounding areas of the company and Ambi
village have many floriculture units. Hence, a three day training programme was
organized along with the nearby Horticulture Training Centre. Twenty five
interested village youths took the advantage of the training programme.
The success of these CSR initiatives was
largely due to whole hearted supported form Ambi Villages. This has encouraged
the company and LBCT for taking greater efforts in these directions.
Fixed Assets
·
·
Factory office and Building
·
Furniture and Fixtures
·
Computer
·
Plant and Machinery
·
Motor Vehicles
·
Computer 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 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] 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.48.83 |
|
|
1 |
Rs.85.12 |
|
Euro |
1 |
Rs.65.86 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
2 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
-- |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
2 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
19 |
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 |
|