MIRA
INFORM REPORT
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Report Date : |
06.09.2012 |
IDENTIFICATION DETAILS
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Name : |
JAMNA AUTO INDUSTRIES LIMITED |
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Registered
Office : |
Jai Spring Road Industrial Area, Yamuna Nagar – 135001, Haryana |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
30.09.1965 |
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Com. Reg. No.: |
05-004485 |
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Capital
Investment / Paid-up Capital : |
Rs. 428.977 Millions |
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CIN No.: [Company Identification
No.] |
L35911HR1965PLC004485 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
RTKJ01251F/ RTKJ01900D |
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PAN No.: [Permanent Account No.] |
AAACJ39999 |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturer of Auto Parabolics / Tapered Leaf Springs,
Railways (Spares and Loose Leaves), Agricultural Implements and Auto Stabilizer
bars. |
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No. of Employees
: |
500 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
B (30) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 6200000 |
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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 an established company having moderate track. There appears
some accumulated losses recorded by the company. However, trade relations are
reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some
cautions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including industrial
deregulation, privatization of state-owned enterprises, and reduced controls on
foreign trade and investment, began in the early 1990s and has served to
accelerate the country's growth, which has averaged more than 7% per year since
1997. India's diverse economy encompasses traditional village farming, modern
agriculture, handicrafts, a wide range of modern industries, and a multitude of
services. Slightly more than half of the work force is in agriculture, but
services are the major source of economic growth, accounting for more than half
of India's output, with only one-third of its labor force. India has
capitalized on its large educated English-speaking population to become a major
exporter of information technology services and software workers. In 2010, the
Indian economy rebounded robustly from the global financial crisis - in large
part because of strong domestic demand - and growth exceeded 8% year-on-year in
real terms. However, India's economic growth in 2011 slowed because of persistently
high inflation and interest rates and little progress on economic reforms. High
international crude prices have exacerbated the government's fuel subsidy
expenditures contributing to a higher fiscal deficit, and a worsening current
account deficit. Little economic reform took place in 2011 largely due to
corruption scandals that have slowed legislative work. India's medium-term
growth outlook is positive due to a young population and corresponding low
dependency ratio, healthy savings and investment rates, and increasing
integration into the global economy. India has many long-term challenges that
it has not yet fully addressed, including widespread poverty, inadequate
physical and social infrastructure, limited non-agricultural employment
opportunities, scarce access to quality basic and higher education, and
accommodating rural-to-urban migration.
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Source
: CIA |
EXTERNAL AGENCY RATING
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Rating Agency Name |
ICRA |
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Rating |
BBB– (Long Term Rating) |
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Rating Explanation |
The moderate – credit – quality rating assigned by ICRA. The rated
instrument carries than average credit risk. |
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Date |
February 2012 |
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Rating Agency Name |
ICRA |
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Rating |
P3+ |
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Rating Explanation |
The moderate – credit – quality rating assigned by ICRA to short term
debts instrument. However, instruments rated in this category carry higher
credit risk. |
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Date |
February 2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
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Registered Office/ Factory 1 : |
Jai Spring Road, Industrial Area, Yamuna Nagar – 135001, Haryana,
India |
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Tel. No.: |
91-1732-251810/ 11/ 12/ 14 |
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Fax No.: |
91-1732-251820/ 251443 |
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E-Mail : |
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Website : |
http://www.jaispring.org |
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Corporate Office : |
No.2, |
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Tel. No.: |
91-11-32566685/ 26893331/ 26896960 |
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Fax No.: |
91-11-26893192/ 26893180 |
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Factory 2: |
U: 27-29, Industrial
Area, Malanpur, District Bhind - 477116, Madhya Pradesh, India |
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Tel No.: |
91-7539-283396/ 409117 |
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Fax No.: |
91-7539-283395 |
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Email : |
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Factory 3: |
Plot No. 22-25,
Sengundram Village, Maraimalai Nagar Industrial Complex, Singaperumal Koil
Post, District Kanchipuram- 603 204, Tamilnadu, India |
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Tel No.: |
91-44-27463800/ 27464346/ 348 |
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Fax No.: |
91-44-27464352 |
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Email : |
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Factory 4: |
Plot No.
262-263, Karnidh, Chandil, District Saraikella - Kharswan – 832401,
Jharkhand, India |
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Tel No.: |
91-657-2940671 |
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Email : |
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Factory 5: |
Gata No. 1490,
Khajoor Gaon, Chinhat- Deva Road, District Barabanki –225003, Uttar Pradesh,
India |
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Factory 6: |
Thally Road, Kalugondapalli
Post, Hosur-635114, District Krishnagiri, Tamilnadu, India |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. Bhupinder Singh Jauhar |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. Randeep Singh Jauhar |
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Designation : |
Executive Director |
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Name : |
Mr. Pradeep Singh Jauhar |
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Designation : |
Executive Director |
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Name : |
Mr. Karthik Athreya |
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Designation : |
Alternate Director to Dr. Pierre Jean Everaert |
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Name : |
Dr. Pierre Jean Everaert |
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Designation : |
Nominee Director – Clearwater Capital Partners (Cyprus) limited |
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Name : |
Mr. Janender Kumar Jain |
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Designation : |
Nominee Director – ICICI Bank
Limited |
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Name : |
Mr. Dileep Kumar Jain |
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Designation : |
Nominee Director – IFCI Limited |
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Name : |
Mr. Seth Ashok Kumar |
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Designation : |
Director |
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Name : |
Mr. Uma Kant Singhal |
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Designation : |
Director |
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Name : |
Mr. Chander Kailash Vohra |
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Designation : |
Director |
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Name : |
Mr. Shashi Bansal |
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Designation : |
Director |
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Name : |
Mr. S. P. S. Kohli |
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Designation : |
Executive Director |
KEY EXECUTIVES
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Name : |
Mr. Randeep Singh Jauhar |
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Designation : |
Chief Executive Officer |
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Name : |
Mr. Pradeep Singh Jauhar |
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Designation : |
Chief Operating Officer |
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Name : |
Mr. S. P. S. Kohli |
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Designation : |
President |
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Name : |
Mr. Praveen Lakhera |
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Designation : |
Company Secretary and Head Legal |
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Name : |
Mr. Shakti Goyal |
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Designation : |
General Manager – Finance |
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Name : |
Mr. Sunil Laroiya |
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Designation : |
Vice President - International Business and Head (R and D) |
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Name : |
Mr. A. K. Goyal |
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Designation : |
Vice President and Head of Malanpur Plant |
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Name : |
Mr. Madhukar Sharma |
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Designation : |
Global Head (After Market) |
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Name : |
Mr. R. Muthupalani |
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Designation : |
Senior GM and Head of Chennai and Hosur Plant |
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Name : |
Mr. R. P. Singh |
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Designation : |
General Manager and Head of Yamuna Nagar Plant |
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Name : |
Mr. Sudheer Chandele |
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Designation : |
Acting Plant Head of Jamshedpur Plant |
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Name : |
Mr. Sudhanshu Kulshrestha |
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Designation : |
Commercial Head Jamshedpur Plant |
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Name : |
Mr. Singh Ved Prakash |
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Designation : |
Corporate Head-HR |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2012
|
Category of
Shareholder |
No. of Shares |
% of No. of
Shares |
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(1) Indian |
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|
4,331,303 |
10.97 |
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Bodies Corporate |
13,078,527 |
33.13 |
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Sub Total |
17,409,830 |
44.11 |
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(2) Foreign |
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Total shareholding of Promoter and Promoter Group (A) |
17,409,830 |
44.11 |
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(1) Institutions |
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Mutual Funds / UTI |
23,150 |
0.06 |
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Financial Institutions / Banks |
6,650 |
0.02 |
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Foreign Institutional Investors |
259,815 |
0.66 |
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Sub Total |
289,615 |
0.73 |
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(2) Non-Institutions |
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1,811,430 |
4.59 |
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Individuals |
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Individual shareholders holding nominal share capital up to Rs. 0.100
million |
3,117,085 |
7.9 |
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2,666,377 |
6.76 |
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Any Others (Specify) |
14,176,384 |
35.92 |
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13,501,653 |
34.21 |
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Clearing Members |
1,935 |
- |
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Hindu Undivided Families |
229,102 |
0.58 |
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NRIs/OCBs |
433,694 |
1.1 |
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|
10,000 |
0.03 |
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Sub Total |
21,771,276 |
55.16 |
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Total Public shareholding (B) |
22,060,891 |
55.89 |
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Total (A)+(B) |
39,470,721 |
100 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
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- |
- |
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(2) Public |
- |
- |
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Sub Total |
- |
- |
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Total (A)+(B)+(C) |
39,470,721 |
- |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Auto Parabolics / Tapered Leaf Springs, Railways
(Spares and Loose Leaves), Agricultural Implements and Auto Stabilizer bars. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
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Particulars |
Capacity Installed |
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Auto Parabolic /Tapered Leaf Spring/Loose Leaves (MT) |
180000 |
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Railway (Spare & Loose Leaves) |
2400 |
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Agriculture Implements |
1000 |
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Particulars |
Unit |
Actual Production |
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Spring & Spring Leaves |
MT |
126857.876 |
GENERAL INFORMATION
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Customers : |
·
AMW The Global Truck ·
Ashok Leyland ·
Ashok Leyland Nissan Vehicles ·
Daimler India Commercial Vehicles Private Limited
·
Force Motors ·
Ford ·
Kamaz Vectra ·
Mahindra Navistar ·
Man ·
Maruti Suzuki ·
Renault Nissan ·
SML Isuzu ·
Taco Hendrickson ·
Tata ·
Volvo ·
GM ·
Isuzu ·
UD Trucks |
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No. of Employees : |
500 (Approximately) |
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Bankers : |
·
State Bank of India ·
ICICI Bank Limited ·
Kotak Mahindra Bank ·
Standard Chartered Bank ·
IndusInd Bank Limited ·
Lakshmi Vilas Bank |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
B S R And Company Chartered Accountant |
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Legal Asvisors : |
· AZB and partners · Lakshmi Kumaran and Sridharan |
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Technical
Assistance : |
Ridewell Corporation, USA |
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Joint Ventures Partners : |
NHK Spring Company Limited, Japan (NHK Spring India Limited) |
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Enterprise in which the Company holds controlling interest : |
·
Jai Suspension Systems LLP |
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Entities over
which key managerial personnel/ their relatives are able to exercise
significant influence : |
·
Jamna Agro Implements Private Limited ·
S.W. Farms Private Limited ·
Map Auto Limited ·
Winthrop Marketing |
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
63886500 |
Equity Shares |
Rs.10/- each |
Rs. 638.865 Millions |
|
350000 |
12.50% Optionally convertible Cumulative Preference Shares |
Rs.100/- each |
Rs. 35.000 Millions |
|
|
TOTAL |
|
Rs. 673.865
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
39382816 |
Equity Shares |
Rs.10/- each |
Rs. 393.828
Millions |
|
30645 |
Equity Shares |
Rs.10/- each |
Rs. 0.306
Million |
|
Less |
Call in arrears |
|
Rs. 0.152
Million |
|
350000 |
12.50% Optionally convertible Cumulative Preference Shares |
Rs.100/- each |
Rs. 35.000
Millions |
|
|
TOTAL |
|
Rs. 428.977 Millions |
NOTES:
a.
Reconciliation of shares outstanding at the
beginning and at the end of the reporting period
|
PARTICULAR |
As At 31 March
2012 |
|
|
Equity shares - Subscribed and fully paid up |
No. of Shares |
Rs. In Millions |
|
At the beginning of the year |
39261077 |
392.611 |
|
Add : Fresh allotment of share on account of ESOP |
121739 |
1.217 |
|
Number of shares at the end of the year |
39382816 |
393.828 |
|
Equity shares - Subscribed but not fully paid up |
|
|
|
Number of shares at the beginning and end of the year |
30645 |
0.306 |
|
Preference shares |
|
|
|
Number of shares at the beginning and end of the year |
350000 |
35.000 |
b.
Term and rights attached to Equity shares
The Company has
only one type of equity shares having par value of Rs. 10 each. All shares rank
pari passu with respect to dividend, voting rights and other terms. Each
shareholder is entitled to one vote per share except, in respect of any shares
on which any calls or other sums payable have not been paid. The Company pays
and declares dividends in Indian Rs. The dividend proposed, if any, by the
Board of Directors is subject to approval of shareholders in the ensuing Annual
General Meeting, except in case of interim dividend. During the year, the
Company has declared two interim dividends of Rs. 1 per share each (Previous
year one interim and final dividend of Rs. 1 each). The repayment of equity
share capital in the event of liquidation and buy back of shares are possible
subject to prevalent regulations. In the event of liquidation, normally the equity
shareholders are eligible to receive the remaining assets of the Company after
distribution of all preferential amounts,
in proportion to their shareholding.
c.
Terms and rights of preference shares including the
terms of conversion/redemption
The preference
shares were issued to IFCI Limited pursuant to the debt restructuring scheme
entered between erstwhile Jai Parabolic Springs Limited and IFCI Limited in the
year ended 31 March 2003. The redemption of preference share capital will be
made in two equal installments of Rs.175 each on 1 October 2013 and 1 October
2014. The preference shareholders are not entitled to any voting rights. The
preference shares are entitled to dividend as follows-
|
Date |
Amount |
|
30 September 2012 |
Rs. 100 |
|
30 September 2013 |
Rs. 100 |
|
30 September 2014 |
Rs. 175 |
|
30 September 2015 |
Rs. 156 |
The Boards of
Directors have recommended a cumulative preference dividend amounting to Rs.
43.200 Millions relating to the period December 2002 to 31 March 2012 in the
board meeting held on 7 June 2012. The preference dividend for the year ended
31 March 2012 amounts to Rs. 43.75 (previous year Rs. 43.75). The same is
subject to the approval of shareholders.
d.
Details of shareholders holding more than 5% shares
in the Company
|
|
As At 31.03.2012 |
|
|
Equity shares of Rs.10 each fully paid |
No. of Shares |
% holding in the
class |
|
Clearwater Capital Partners (Cyprus) Limited |
9614147 |
24.41% |
|
Randeep Investment Private Limited |
7061390 |
17.193% |
|
Map Auto Limited |
4624711 |
11.74% |
|
NHK Springs Company Limited, Japan |
2308509 |
5.86% |
|
Preference shares of Rs. 100 each fully paid |
|
|
|
IFCI Limited |
350000 |
100.00% |
e.
Shares reserved for issue under Options and
contracts/commitments for the sale of shares/ disinvestment, including the
terms and amounts
The Company
provides shares based payment schemes to its employees. During the year ended
31 March 2012, employee stock option schemes were in existence and 853,775
stock options (Previous year: 1,202,857) is eligible to be exercised by the
employees as per their vesting and in accordance with the terms of issue of
stock option.
f.
Aggregate
number of shares issued for consideration other than cash during the period of
five years immediately preceding the balance sheet date
|
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Equity shares
(of Rs.10 each) allotted pursuant to scheme of amalgamation |
-- |
-- |
-- |
-- |
14191048 |
|
Preference
shares (of Rs.100 each) allotted pursuant to the scheme of amalgamation |
-- |
-- |
-- |
-- |
350000 |
During the year ended
31 March 2008 pursuant to the scheme of amalgamation, erstwhile Jai Parabolic
Springs Limited and MAP Springs Limited amalgamated with the Company with
effect from 1 July 2007. In accordance with the scheme, the Company had issued
and alloted:
(A)
12,395,821 equity shares of face value of Rs.10
each fully paid up to the shareholders of esrtwhile Jai Parabolic Springs
Limited and MAP Springs Limited
(B)
1,795,227 equity shares of face value of Rs.10 each
fully paid up were issued to Clearwater Capital Parnters (Cyprus) Limited in
lieu of 3,590,455 optionally convertible debentures of Rs.72 each held in Jai
Parabolic Springs Limited.
(C)
350,000 Preference shares of Rs.100 each fully paid
up were issued to IFCI Limited held in erstwhile Jai Parabolic Springs Limited.
g.
Forfeited shares (amount originally paid up,
included in capital reserve)
|
|
No. of Shares |
Amount |
No. of Shares |
Amount |
|
Equity share
capital (28,190 equity shares of Rs.10 each, amount called up Rs.10 each (Previous
year 28,190 equity shares of Rs.10 each, amount called up Rs.10 each)) |
28190 |
1.45 |
28190 |
1.45 |
h.
During the previous year, in the Annual General
Meeting held on 7 August 2010, the Company had made preferential allotment of 15,78,947
equity shares of Rs.10 each to Clearwaters Capital Partners Singapore Fund III
Private Limited and 10,52,631 equity shares of Rs.10 each to MAP Auto Limited
at a premium of Rs.85 per equity share aggregating to equity share capital
amounting to Rs. 26.316 Millions and share premium amounting to Rs. 223.684
Millions.
i.
Share application money
|
|
As At 31.03.2012 |
|
Shares proposed to be issued (in numbers) |
5800 |
|
Fully paid up value of shares |
0.58 |
|
Premium on shares proposed to be issued |
2.14 |
The share
application money includes amount received from employees against the employee
stock option plan. The Company has sufficient authorised share capital to cover
the share capital amount on allotment of shares out of share application money.
The share application money pending allotment was received between 23 February
2011 to 14 March 2012 and the corresponding shares have been allotted in the
compensation committee meeting held on 30 May 2012.
AS ON 31.08.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
63886500 |
Equity Shares |
Rs.10/- each |
Rs. 638.865 Millions |
|
350000 |
12.50% Optionally convertible Cumulative Preference Shares |
Rs.100/- each |
Rs. 35.000 Millions |
|
|
TOTAL |
|
Rs. 673.865
Millions |
Issued, Subscribed & Paid-up Capital : Rs. 429.861
Millions
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
428.977 |
427.760 |
400.360 |
|
|
2] Share Application Money |
0.272 |
0.083 |
0.000 |
|
|
3] Reserves & Surplus |
1138.233 |
915.789 |
836.998 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
(487.831) |
|
|
NETWORTH |
1567.482 |
1343.632 |
749.527 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
586.531 |
397.671 |
924.575 |
|
|
2] Unsecured Loans |
572.066 |
688.960 |
224.993 |
|
|
TOTAL BORROWING |
1158.597 |
1086.631 |
1149.568 |
|
|
DEFERRED TAX LIABILITIES |
111.992 |
22.877 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2838.071 |
2453.140 |
1899.095 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1777.233 |
1683.710 |
1410.472 |
|
|
Capital work-in-progress |
828.790 |
243.117 |
214.976 |
|
|
|
|
|
|
|
|
INVESTMENT |
219.059 |
264.274 |
72.198 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
103.025 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1085.151
|
860.572
|
681.676 |
|
|
Sundry Debtors |
1070.677
|
1177.959
|
532.749 |
|
|
Cash & Bank Balances |
64.361
|
86.634
|
146.784 |
|
|
Other Current Assets |
249.957
|
138.670
|
0.000 |
|
|
Loans & Advances |
413.663
|
463.297
|
229.355 |
|
Total
Current Assets |
2883.809
|
2727.132 |
1590.564 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2148.427
|
2076.413
|
1618.108 |
|
|
Other Current Liabilities |
529.780
|
263.236
|
125.710 |
|
|
Provisions |
192.613
|
125.444
|
19.522 |
|
Total
Current Liabilities |
2870.820
|
2465.093 |
1763.340 |
|
|
Net Current Assets |
12.989
|
262.039
|
(172.776) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
271.200 |
|
|
|
|
|
|
|
|
TOTAL |
2838.071 |
2453.140 |
1899.095 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
9674.337 |
8157.200 |
5576.060 |
|
|
|
Other Income |
282.969 |
222.728 |
174.614 |
|
|
|
TOTAL (A) |
9957.306 |
8379.928 |
5750.674 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of material consumed |
6832.555 |
5762.931 |
4479.100 |
|
|
|
Employee benefits expenses |
461.046 |
386.663 |
266.563 |
|
|
|
Other expenses |
1676.248 |
1243.479 |
0.000 |
|
|
|
Selling and Administrative Expenses |
0.000 |
0.000 |
220.440 |
|
|
|
Preliminary/ Deferred Revenue Expenses
Written off |
0.000 |
0.000 |
105.335 |
|
|
|
Prior Period Adjustments |
23.612 |
(0.809) |
0.000 |
|
|
|
Exceptional Items (Gains)/ Loss |
0.000 |
(71.859) |
(3.588) |
|
|
|
Change in
inventories of finished goods and work
in progress |
(29.671) |
(15.641) |
71.300 |
|
|
|
TOTAL (B) |
8963.790 |
7304.764 |
5139.150 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
993.516 |
1075.164 |
611.524 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
159.961 |
205.546 |
256.234 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
833.555 |
869.618 |
355.290 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
316.027 |
316.283 |
140.663 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
517.528 |
553.335 |
214.627 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
89.115 |
128.519 |
55.751 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
428.413 |
424.816 |
158.876 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
NA |
(565.577) |
|
|
|
|
|
|
|
|
|
Less |
Income
Tax Paid for Earlier Years / Adjustments |
NA |
NA |
1.871 |
|
|
|
Add:
Deduct Prior Period Year’s Expenses/ (Income) (Net) |
NA |
NA |
79.258 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
NA |
NA |
(487.830) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
32.859 |
77.134 |
51.985 |
|
|
TOTAL EARNINGS |
32.859 |
77.134 |
51.985 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
24.393 |
268.988 |
1026.522 |
|
|
|
Stores & Spares |
0.398 |
3.248 |
0.000 |
|
|
|
Capital Goods |
226.662 |
2.948 |
0.000 |
|
|
TOTAL IMPORTS |
251.453 |
275.184 |
1026.522 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(Rs.) |
10.88 |
11.12 |
2.13 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
|
|
1st
Quarter |
|
Net Sales |
2134.400 |
|
Total Expenditure |
1952.800 |
|
PBIDT (Excl OI) |
181.600 |
|
Other Income |
59.200 |
|
Operating Profit |
240.800 |
|
Interest |
40.100 |
|
Exceptional Items |
0.000 |
|
PBDT |
200.700 |
|
Depreciation |
75.200 |
|
Profit Before Tax |
125.500 |
|
Tax |
24.400 |
|
Provisions and contingencies |
0.000 |
|
Profit After Tax |
101.100 |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
101.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
4.30
|
5.07 |
2.76 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.35
|
6.78 |
3.85 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
11.10
|
12.54 |
7.15 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.33
|
0.41 |
0.29 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.64
|
2.66 |
3.89 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.00
|
1.11 |
0.90 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
Yes |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
Yes |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
No |
|
31] |
Date of Birth
of Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External
Agency Rating, if available |
Yes |
PERFORMANCE
Directors are
happy to inform that during the year, the Company, maintaining its leadership position,
crossed the landmark Rs. 10000.000 Millions turnover. Its consolidated turnover
stood at Rs. 12040.000 Millions as against Rs. 9980.000 Millions in 2010-2011.
Consolidated profit after tax for 2011-2012 is Rs. 421.900 Millions compared to
Rs. 372.000 Millions in 2010-2011.
The Company has
paid interim dividend of Rs. 1 per share twice during the year and is proposing
to pay final dividend of Rs. 1.50 per equity share. The Company is proposing to
pay accumulated dividend of Rs. 43.200 Millions up to 31 March 2012 to IFCI
Limited on 12.50% Optionally Convertible Cumulative Preference Shares.
In their last
annual report, they had stated that the Company would actively pursue broad
three objectives - increase in product range, add new markets and enhance
shareholders’ value. They are glad to inform that the Company has made
significant progress in all the three areas.
PRODUCT
As mentioned
above, the Company’s plans for launch of lift axles and air-suspension is going
as per schedule. As part of their strategy, they intend to bring down the share
of conventional spring to 65% by FY2015. They are happy to inform that during
the year sales of parabolic springs grew by 31%. The Company has tied up with
Ashok Leyland Limited for supply of lift axles for its commercial vehicles.
MARKET
As part of
de-risking strategy, the Company has been aggressively trying to penetrate the
After Market - India/ Exports. The domestic After Market sale is being
spearheaded by Jai Suspension Systems LLP in which the Company is a major
partner. They are aiming at minimum 33% turnover from the After Market -
India/Exports segment by 2015. They are happy to inform that their efforts in
this direction have started yielding results. The After Market - India/Exports
sales grew by 37% in 2011-12.
LOCATIONS
The expansion plan
at Yamuna Nagar (Haryana) is complete and Malanpur (Madhya Pradesh) is going on
and will be completed in September 2012. The Hosur Plant was completed in June
2012.
During the year
the Company purchased land in Pune for setting up facility for manufacturing of
springs and additional land in Malanpur and Yamuna Nagar for expansion.
PATENT APPLICATION
Patent application
filed by the Company for patent in India in respect of its Air Suspension is
pending before the authorities. The Company is the owner of copyright of more
than 45 designs of Leaf and Parabolic Springs.
MANAGEMENT
DISCUSSION AND ANALYSIS
THE COMPANY’S
PERCEPTION ABOUT THE INDUSTRY SCENARIO
CV industry posted
strong performance in 2009-10 and 2010-11. But it grew by 18% in 2011-12 as
against 29% growth in 2010-11. While medium and heavy commercial vehicles (M
and HCVs) registered the subdued growth of 11%, light commercial vehicles grew
at 25%, as per SIAM data. In the overall spring demand grew by 11%.
The year also
witnessed the government and the Reserve Bank of India efforts to contain
inflation which resulted in hardening of interest rates affecting overall
economic growth. It is the general perception that if the economic activity
does not pick up and the GDP growth is in 5-6% in the current year, it may not
spell good news for CV segment.
THE COMPANY
PERCEIVE THE INDUSTRY’S DEMAND OUTLOOK FOR 2012-13
The year 2012-13 has
begun on a somber note for the CV segment. The first quarter of the fiscal year
usually is a slow starter for CV industry.
Tight liquidity in
banking sector with high lending rates will be a big damper in the demand for
CVs. Steady decline in Index of Industrial Production (IIP) from January 2012
onwards also suggests slowdown in truck demand.
Given the weak
macro factors, growth in commercial vehicles is likely to be moderate in the
current year. With the slowdown in industrial activity, medium and heavy
commercial vehicles will see a poor performance in the near-term even as Light
commercial vehicles will maintain healthy sales momentum, aided by higher
hinterland goods transport.
THE SHORT TERM AND
LONG TERM OUTLOOK
As the company’s
fortune is tied with the CV industry, Jamna would be equally hard hit during
economic slowdown due to OEM concentration factor. However, Subject has taken a
number of initiatives to insulate itself from such eventuality by trying to
reduce OEM concentration risk by diversifying the product range and markets.
Besides, it has been constantly trying to improve operational and cost
efficiencies across various facets of its operations.
The current
financial year will be tough. Overall, given the formidable headwinds in the OE
segment, consolidated sales levels is likely to be lower in 2012-13 than in the
previous year. However, they are confident of maintaining profit levels during
2012-13 thanks to an improved sales-mix, with higher After- Market -
India/Export and parabolic spring sales buoying profitability. They expect
healthy cash generation and lower capital expenditure, allowing us to pay 33
percent of profits as dividend.
THE DE-RISKING
STRATEGY OF THE COMPANY
As stated
elsewhere, the company has been aggressively trying to reduce its OEM
concentration risk by diversifying the product range and markets. Looking
ahead, they expect their top customer to account for less than 33% by 2015. By
then, they aim to expand the “Non-OE” contribution to sales to 33% and also to
bring down the share of traditional leafsprings to 65% of sales.
THE INTERNAL
CONTROLS IN THE COMPANY
As the company has
grown in size and locations, it is of paramount importance that strong internal
controls, systems and processes are in place to minimize any risk of fraud or
any operational risk. All main HR functions like pay roll etc are being brought
under SAP in all the plants. The company had engaged an independent SAP firm to
conduct an audit of its existing SAP running in three locations. Gaps identified
during the audit process are now being plugged with the aid of an experienced
SAP firm. The company wants to bring all the plants under SAP which will bring
uniformity in practices of all the plants. Jamna has engaged the prestigious
JITPI of Japan to achieve its mission of introducing world class manufacturing
concept in all the plants.
The Company places
strong emphasis on best practices in corporate governance. Periodic audit of
secretarial and legal compliances are being done which is supervised by the
board of directors. Besides, the reports of the internal auditors are reviewed
by the Audit Committee of the Board.
FIXED ASSETS:
· Goodwill
· Land
· Building
· Plant and Machinery
· Furniture and Fixtures
· Vehicles
· Office Equipment
· Other assets
· Computer and Software
STATEMENT OF UN-AUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER
ENDED 30 JUNE 2012
(Rs. In millions)
|
Particulars |
Quarter Ended
30.06.2012 (Un-audited) |
|
(a) Net Sales/ Income from
operation |
2134.400 |
|
(b) Other Operating Income |
- |
|
Total Income |
2134.400 |
|
2. Expenditure |
|
|
Cost of material consumed |
1670.200 |
|
Changes in inventories of finished goods and work in progress |
(315.800) |
|
Employees benefits expenses |
131.500 |
|
Depreciation and amortisation expenses |
75.200 |
|
Power and fuel |
231.100 |
|
Other expenses |
235.800 |
|
Total |
2028.000 |
|
3. Profit(+)/ Loss(-) from Operations before other Income Interest and
Exceptional Item(1-2) |
106.400 |
|
4. Other Income-Foreign Exchange Fluctuation-Gain/(Loss) |
59.200 |
|
5. Profit(+)/ Loss(-) before Interest and Exceptional Item |
165.600 |
|
6. Interest |
40.100 |
|
7. Profit(+)/ Loss(-) after Interest but before Exceptional Item (5-6) |
125.500 |
|
8. Exceptional Items |
-- |
|
9. Profit(+)/
Loss (-) from ordinary activities
before Tax (7-8) |
125.500 |
|
10. Tax Expenses |
24.400 |
|
11. Net Profit(+)/ Loss (-) from ordinary activities after Tax (9-10) |
101.100 |
|
12. Extraordinary Items (Net of Tax Expense Rs.________) |
-- |
|
13. Net Profit (+)/ Loss(-) for the period (11-12) |
101.100 |
|
14. Paid Up Equity Share Capital (Face Value of Rs.10 Per Share) |
394.700 |
|
15. Reserves excluding Revaluation Reserves as per Balance Sheet of
Previous Accounting Year |
-- |
|
16. Earning per Share (EPS) |
|
|
a) Basic and diluted EPS before extraordinary items for the period,
for the year to date and for the previous year (not annualised) |
2.53 |
|
b) Basic and diluted EPS after extraordinary items for the period, for
the year to date and for the previous year (not annualised) |
2.51 |
* Figures for the
three months ended 31 March 2012 are the balancing figures between audited
figures in respect of full previous financial year and the published year to
date figures up to the third quarter of the previous financial year. Also, the
figures up to the end of the third quarter of the previous financial were only
reviewed and not subject to audit.
|
17. Public Shareholding |
22060891 |
|
Number of Shares |
55.89% |
|
% of Share holding |
|
|
18. Promoters and promoter group Shareholding |
|
|
a) Pledged/Encumbered |
|
|
- Number of shares |
1652174 |
|
- Percentage of shares (as a % of the total
shareholding of promoter and promoter
group) |
9.49% |
|
- Percentage of shares (as a
% of the total share capital of the
company) |
4.19% |
|
b) Non-encumbered |
|
|
- Number of shares |
15757656 |
|
- Percentage of shares (as a % of the total
shareholding of promoter and
promoter group) |
90.51% |
|
- Percentage of shares (as a % of the total
share capital of the company) |
39.92% |
|
Particulars
|
Quartered
Ended 30.06.2012 |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
2 |
|
Disposed of during the quarter |
2 |
|
Remaining unresolved at the end of the quarter |
Nil |
NOTES
1.
The above results were reviewed by the Audit
Committee and approved by the Board of Directors at their meeting held on 30
July 2012.
2.
The Statutory Auditor of the Company have carried
out a Limited Review of the financial results for the quarter ended 30 June
2012 and an unmodified report has been issued.
3.
Pursuant to the decision made in the meeting of
partners of Jai Suspension Systems Limited Liability Partnership (LLP), in
which Jamna Auto Industries Limited is a partner, conducted on 30 June 2012, it
was decided that profits earned by the LLP for the quarter ended 30 June 2012
amounting to Rs.55.000 Millions, be credited to the respective current accounts
of the partners. The same has been included under other income.
4.
The Company published its audited financial results
under clause 41 of the of the Listing Agreement for the year ended 31 March
2012, based on the meeting of the Board of Directors on 30 May 2012. Thereafter
at a Board of Directors meeting held on 7 June 2012, at which the audited
financial statements for the year ended 31 March 2012 prepared under the
Companies Act were approved, the Board of Directors recommended a final equity
dividend of 15 % and cumulative preference dividend aggregating to Rs. 118.900
Millions. The reserves and surplus balance disclosed in the audited financial
results for the year ended 31 March 2012 have been adjusted in the Statement to
reflect the above.
5.
The Company is in the business of manufacturing
parabolic/ tapered leaf spring and air suspension spring. As the Company’s
business activities fall within a single business segment, no segment
disclosures are required.
6.
During the quarter ended 30 June 2012, equity share
capital has increased by 57,260 shares due to allotment made to the employees
upon exercise of stock options. Current period earnings per share has been
computed after considering the impact for preference dividend and outstanding
employee stock options.
7.
Previous period figures which were reviewed by the
erstwhile statutory auditors have been re-grouped/re-classified/re-arranged
wherever necessary to make them comparable.
WEBSITE DETAILS:
PROFILE:
Mr. Bhupinder
Singh Jauhar is the spirit behind the Jamna Group. He started the spring
business in 1954 in a small shop in Yamuna Nagar which has now acquired global
recognition as the third largest producer of Leaf and Parabolic Springs in the
world. He is actively associated with leading educational institutions in
Yamuna Nagar and Ambala. Mr. Jauhar is currently the non executive Chairman of
the board of directors of the company and is Chief Mentor of the Group.
Subject five state
of the art manufacturing facilities are located at Yamuna Nagar, Malanpur (near
Gwalior), Chennai, Jamshedpur and Lucknow. The Hosur facility is under
implementation stage. Its wholly owned subsidiary, Jai Suspension Systems LLP
(JSS LLP) has a plant at Pant Nagar in Uttarakhand.
Subject is the
third largest manufacturer of Leaf and Parabolic springs in the world. The
company will soon launch Air Suspension Systems for buses. Advance trials are
currently going on before the formal launch. It is also introducing Lift Axles
and Bogie Suspensions for the first time in India which will enhance efficiency
of CVs covering long distances and in mining segment.
Subject has built
up a strong dealer network, through its subsidiary - Jai Suspension Systems LLP
(JSS LLP), all over the country to support growing domestic After Market
demand. The company sells springs under the "JAI" brand in the After
Market and its products command premium.
Suspension system
is a highly critical component in commercial vehicles. And it is because of
this reason Subject places high reliance on constant technological innovation
and adoption of the best practices in world class manufacturing in all its
Plants.
NEWS
PRESS RELEASE
OUTCOME OF 46TH ANNUAL GENERAL MEETING
18 August 2012
Members of the Company, at their 46th
Annual General Meeting of the Company held on Saturday, 18 August 2012, at 9.30
a.m. at the Registered Office of the Company have:
1. Approved and adopted the audited
Balance Sheet of the Company as at March 31, 2012, Statement of Profit and Loss
for the period ended on that date, Report of the Board of Directors and
Auditors report.
2. Declared final dividend of Rs 1.5 on
equity share of Rs. 10 each. Dividend on equity shares shall be paid on 4
September 2012.
3. Re-appointed Mr. Uma Kant Singhal as
Director retiring by rotation.
4. Re-appointed Mr. Chander Kailash
Vohra as Director retiring by rotation.
5. Re-appointed Mr. Pradeep Singh
Jauhar as Director retiring by rotation.
6. Re-appointed M/s B S R & Co;
Chartered Accountants as the statutory auditor to hold office from this Annual
General Meeting till the conclusion of next Annual General Meeting and
authorised Board to fix their remuneration.
7. Declared Preference Dividend of Rs.
43200000 accumulated on the 12.5% Redeemable Optionally Convertible Preference
Shares of Rs. 100 each. Dividend on Preference Shares shall be paid on 24
August 2012.
8. Appointed Mr. Jainender Kumar Jain
as Director of the Company, liable to retire by rotation.
9. Re-appointed Mr. S. P. S. Kohli as
President and Executive Director for a term of three years with effect from 23
October 2011 to 22 October 2014.
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. 55.89 |
|
|
1 |
Rs. 88.63 |
|
Euro |
1 |
Rs. 70.02 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
2 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
30 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this report.
The assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.