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Stakeholdersβ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory
STAKEHOLDERS EMPOWERMENT SERVICES
1 | P A G E
SECTOR: CAPITAL GOODS - ELECTRICAL EQUIPMENT REPORTING DATE: 14TH AUGUST, 2017
JYOTI STRUCTURES LTD. www.jsl.in
Jyoti Structures Ltd. NSE Code - JYOTISTRUC TABLE 1 - MARKET DATA (STANDALONE) (AS ON 10TH AUGUST, 2017)
Sector - Capital Goods - Electrical Equipment NSE Market Price (`) 8.85 NSE Market Cap. (βΉ Cr.) 92.00
Face Value (`) 2.00 Equity (` Cr.) 21.91
Business Group - Valecha 52 week High/Low (βΉ) 15.20/6.85 Net worth (βΉ Cr.) * (375.54)
Year of Incorporation - 1974 TTM P/E (TTM) N.A. Traded Volume (Shares) 1,05,033
TTM P/BV N.A. Traded Volume (lacs) 9.30
Registered Office - Source - Capitaline, TTM - Trailing Twelve Months, N.A. β Not Applicable *As on 30th September 2016
Valecha Chambers, 6th Floor, COMPANY BACKGROUND
New Link Road, Andheri (W), Jyoti Structures Ltd is one of India's leading providers of turnkey solutions in the
field of power transmission. The company is engaged in the business of providing
turnkey solutions in the field of power transmission. They have three main lines
of operation, namely Transmission Lines, Substations and Rural Electrification.
The company is an ISO 9001, ISO 14001 and OHSAS certified company. They
undertake turnkey projects on a global scale, offering a complete range of
services from design, engineering and tower testing to manufacturing,
construction and project management.
Jyoti Structures Ltd was incorporated on May 27, 1974 as a private limited
company with the name Jyoti Structurers Pvt Ltd. In October 21, 1974, the name
of the company was changed to Jyoti Structures Pvt Ltd. Also, the company was
converted into public limited company and the name was changed to Jyoti
Structures Ltd with effect from October 21, 1974. In April 1979, they commenced
commercial production at Nasik Factory.
Mumbai β 400 053, Maharashtra
Company Website:
www.jsl.in
Revenue and Profit Performance
The revenue of the Company decreased from βΉ 394.85 crores
to βΉ 270.80 crores from quarter ending Sepβ15 to quarter
ending Sepβ16. The Company made a loss of βΉ 271.95 crores in
quarter ending Sepβ16 vis-a-vis making a loss of βΉ 157.24
crores in quarter ending Sepβ15.
Source: Moneycontrol
Performance vis-Γ -vis Market
TABLE 2- Returns
1-m 3-m 6-m 12-m
Jyoti Structures Ltd 0.57% -3.95% -2.75% -22.71%
Nifty -0.72% 3.00% 12.56% 13.63%
Source: Capitaline/ NSE
0.00
0.50
1.00
1.50
Aug 16 Oct 16 Dec 16 Feb 17 Apr 17 Jun 17
Jyoti Structures Ltd NIFTY
270.80
740.10
394.85
-271.95-52.31
-157.24-500
0
500
1000
Sep'16 Mar'16 Sep'15
Quarterly revenue and Profit (βΉ CRORE)
Revenue Profit
Stakeholdersβ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory
STAKEHOLDERS EMPOWERMENT SERVICES
2 | P A G E
SECTOR: CAPITAL GOODS - ELECTRICAL EQUIPMENT REPORTING DATE: 14TH AUGUST, 2017
JYOTI STRUCTURES LTD. www.jsl.in
TABLE 3 - FINANCIALS
(βΉ Cr.) Sepβ16 Marβ16 Sepβ15 % Change
Sep β16 vs Marβ16 Marβ16 vs Sepβ15
Net Worth -375.54 121.20 315.63 -409.85% -61.60%
Current Assets 5,442.88 5,368.01 4,727.81 1.39% 13.54%
Non-Current Assets 591.79 610.99 563.51 -3.14% 8.43%
Total Assets 6,034.67 5,979.00 5,291.32 0.93% 13.00%
Investments 88.38 86.55 86.55 2.11% 0.00%
Finance Cost 192.46 97.80 153.65 96.79% -36.35%
Long Term Liabilities 176.93 799.95 1,266.33 -77.88% -36.83%
Current Liabilities 6,233.28 5,057.85 3,709.34 23.24% 36.35%
Turnover 270.44 740.02 394.06 -63.46% 87.79%
Profit After Tax (PAT) -271.95 -52.31 -157.24 N.A. N.A.
EPS (βΉ) -24.83 -4.78 -14.36 N.A. N.A.
Source - Money Control/Stock exchange filing
AUDIT QUALIFICATIONS
Audit Qualifications in last 3 years: The Auditors have raised qualifications for FY 2015-16, FY 2014-15 & FY 2013-14.
Similar qualifications were raised by the Auditors in last 3 years as stated below:
Basis for Qualified Opinion:
βa) As on 31st March, 2016, the trade receivables of the Company include amount of βΉ 70.46 Cr outstanding from a Joint
Venture (JV) company, namely Lauren Jyoti Private Limited (LJPL). Further an amount of βΉ 55.07 Cr was paid by the Company on
account of bank guarantee encashed by a customer of LJPL, which is considered receivable from the said JV. The other
outstanding from LJPL are βΉ 25.34 Cr including interest on the outstanding amounts for the current year amounting to βΉ 13.56
Cr. As informed to us, the financial statements of the JV are not available since the last three financial years. Considering the
fact that the financial statements of the JV are not available and it is not regular in repayment of the above outstanding, we are
not able to comment on the recovery of the debt and impact of the same on the financial statements of the Company for the
year.
b) The Company has invested βΉ 5.00 Cr in 50 Lacs equity shares of LJPL. The financial statements of that company for the last
three financial years are not made available to us. As per the last audited financial statements made available for the year
ended on 31st March, 2013, the net worth of that company is fully eroded. The Company has not made any provision for the
diminution in the value of this investment. Due to this non-provision, the loss of the Company for the year is understated by βΉ
5.00 Cr and reserves of the Company are overstated by the same amount.
c) During the year, bank guarantees given by the Company for performance amounting to βΉ 18.23 Cr were encashed by a
customer of the Company. The said amount has not been charged to the Statement of Profit and Loss of the Company though it
has been the practice of the Company to charge such amounts in earlier years. We are informed that the Company will be
initiating arbitration in respect of encashment of these guarantees and it is hopeful of recovering this money from the
customer. We are unable to comment on the recoverability of this amount.
d) As mentioned in clause 29 of note no. 31 to the standalone financial statements, the Company has during the year not
provided a part of the interest on the outstanding loans as claimed by certain banks amounting to βΉ 39.30 Cr, since the
management is of the opinion that the banks have charged excessive interest and the excess interest will be waived by the
banks. We are unable to comment on the impact of the same on the financial statements.β
Management Response:
βAuditors comments on Companyβs accounts read with notes to financial statements are self-explanatory in nature and do not
require any explanation as per provisions of Section 134 of the Act.β
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STAKEHOLDERS EMPOWERMENT SERVICES
3 | P A G E
SECTOR: CAPITAL GOODS - ELECTRICAL EQUIPMENT REPORTING DATE: 14TH AUGUST, 2017
JYOTI STRUCTURES LTD. www.jsl.in
Response Comment
Frequency of Qualifications Similar qualification in last 3 financial years
Have the Auditors made any adverse remark in last 3 years? No -
Are the material accounts audited by the Principal Auditors? Yes -
Do the financial statements include material unaudited financial statements? No -
TABLE 4: BOARD PROFILE (AS PER ANNUAL REPORT 2015-16)
Regulatory Norms Company
% of Independent Directors on the Board 33% 50%
% of Promoter Directors on the Board - 17%
Number of Women Directors on the Board At least 1 1
Classification of Chairman of the Board - Independent Director
Is the post of Chairman and MD/CEO held by the same person? - No
Average attendance of Directors in the Board meetings (%) - 86.44%
Composition of Board: As per Regulation 17(1)(b) of the Listing Regulations, 2015, the Company should have at least 33%
Independent Directors as the Chairman of the Board is a Non-Executive/ Independent Director. The Company has 50% of
Independent Directors and hence, it meets the regulatory requirements.
Board Diversity: The Company has 6 directors out of which 5 are male and 1 is female.
TABLE 5 - FINANCIAL RATIOS
Ratios Sepβ16 Marβ16 Sepβ15
% Change
Sep β16 vs
Marβ16
Marβ16 vs
Sepβ15
Turn
ove
r
Rat
ios
Inventory Turnover 1.38 3.18 1.52 -56.61% 109.85%
Debtors Turnover 0.07 0.18 0.11 -62.99% 60.73%
Fixed asset Turnover 0.46 1.21 0.70 -62.27% 73.20%
Current Asset Turnover 0.05 0.14 0.08 -63.96% 65.40%
Ret
urn
Rat
ios Operating Profit Margin -28.83% 4.13% -6.76% -798.24% N.A.
Net Profit Margin -100.56% -7.07% -39.90% N.A. N.A.
Return on Assets (ROA) N.A. N.A. N.A. N.A. N.A.
Return on Equity (ROE) N.A. N.A. N.A. N.A. N.A.
Return on Capital Employed (ROCE) N.A. N.A. N.A. N.A. N.A.
Liq
uid
ity
Rat
ios
Current Ratio 0.87 1.06 1.27 -17.73% -16.73%
Quick Ratio 0.84 1.02 1.20 -17.09% -15.71%
Cash Ratio 0.18 0.19 0.24 -4.69% -21.42%
Working Capital Turnover ratio N.A. N.A. N.A. N.A. N.A.
Solv
ency
Rat
ios Debt to equity ratio N.A. 29.92 8.97 N.A. 233.39%
Interest Coverage Ratio N.A. 0.31 N.A. N.A. N.A.
Trad
ing
Rat
ios Market Cap / Sales 0.51 0.16 0.38 217.55% -57.63%
Market Cap/ Net Worth N.A. 0.99 0.48 N.A. 107.21%
Market Cap/PAT N.A. N.A. N.A. N.A. N.A.
Market Cap/EBITDA N.A. 3.91 N.A. N.A. N.A.
Source - Money Control
Stakeholdersβ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory
STAKEHOLDERS EMPOWERMENT SERVICES
4 | P A G E
SECTOR: CAPITAL GOODS - ELECTRICAL EQUIPMENT REPORTING DATE: 14TH AUGUST, 2017
JYOTI STRUCTURES LTD. www.jsl.in
TABLE 6 - TRADING VOLUME
Junβ17 Decβ16 Junβ16
% Change
Junβ17 vs
Decβ16
Decβ16 vs
Junβ16
Trading Volume (shares) (avg. of 1 qtr) 1,393,149 410,758 437,565 239.17% -6.13%
Trading Volume (shares) (high in 1 qtr) 10,089,369 3,047,129 3,627,435 231.11% -16.00%
Trading Volume (shares) (low in 1 qtr) 99,859 76,965 131,145 29.75% -41.31%
Ratio - High/low trading volume 101.04 39.59 27.66 155.20% 43.14%
Ratio - High/average trading volume 7.24 7.42 8.29 -2.37% -10.52%
Source: Capitaline
Source: NSE
TABLE 7 (A): OWNERSHIP & MANAGEMENT RISKS
Jun'17 Dec'16 Jun'16 Comments
Shar
eho
ldin
g (%
)
Promoter shareholding 18.24 18.59 18.65 β’ No new equity shares were issued during the
period from Junβ 16 to Junβ 17.
β’ Promoter shareholding has marginally reduced
by 0.41% due to sale of shares.
β’ The shareholding of βpublic institutionβ
decreased from 18.63% to 10.07% and that of
βpublic othersβ increased from 62.72% to 71.69%
during the same period.
β’ Promoters have pledged/ encumbered 84.20% of
their shareholding.
Public - Institutional shareholding 10.07 17.93 18.63
Public - Others shareholding 71.69 63.48 62.72
Non-Promoter Non-Public
Shareholding 0.00 0.00 0.00
Source: NSE
TABLE 7 (B): OWNERSHIP & MANAGEMENT RISKS
Market Activity of Promoters Promoters of the Company sold 56,41,825 & bought 4,200 shares in the secondary
market in last one year.
Preferential issue to promoters No preferential issue was made to the promoters in last one year
Preferential issue to others No preferential issue was made to other shareholders in last one year
GDRs issued by the Company The Company did not issue any GDRs in last one year
Issue of ESOPs/Issue of shares other
than Preferential allotment
The Company did not issue any shares to the employees under its ESOP Scheme in
last one year
Source - Annual Report 2015-16
TABLE 8: PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
Sr. No. Name and Description of main products / services % to Total turnover of the Company
1 Power Transmission and Distribution Business 100%
Source - Annual Report 2015-16
MAJOR SHAREHOLDERS (AS ON 30TH JUNE, 2017)
S. No. Promoters Shareholding S. No. Public Shareholders Shareholding
1 Prakash K Thakur 4.51%
1 Mohan Doulatram Asnani 1.63%
2 Rajkumari K Thakur 2.27%
2 Bina Mohan Asnani 1.61%
3 LIC of India Market Plus 1 Growth Fund 1.07%
Stakeholdersβ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory
STAKEHOLDERS EMPOWERMENT SERVICES
5 | P A G E
SECTOR: CAPITAL GOODS - ELECTRICAL EQUIPMENT REPORTING DATE: 14TH AUGUST, 2017
JYOTI STRUCTURES LTD. www.jsl.in
Glossary
Equity: The equity shares capital of the Company
Net Worth: The amount by which the Assets exceeds the liabilities excluding shareholdersβ funds of the Company
Turnover: The revenue earned from the operations of the Company
EPS: Earning Per Share is net profit earned by the Company per share
πΈππ =Profit After Tax
Number of outstanding shares
P/E ratio: It is the ratio of the Companyβs share price to earnings per share of the Company
π/πΈ πππ‘ππ =Price of each share
Earnings per share
Current Assets: Cash and other assets that are expected to be converted to cash in one year
Fixed Assets: assets which are purchased for long-term use and are not likely to be converted quickly into cash, such as land,
buildings, and equipment
Total Assets: Current Assets + Fixed Assets
Investments: An investment is an asset or item that is purchased with the hope that it will generate income or appreciate in
the future.
Finance Cost: The Financing Cost (FC), also known as the Cost of Finances (COF), is the cost and interest and other charges
incurred during the year in relation to borrowed money.
Long Term Liabilities: Long-term liabilities are liabilities with a maturity period of over one year.
Current Liabilities: A company's debts or obligations that are due within one year.
Inventory Turnover ratio: Inventory Turnover is a ratio showing how many times a company's inventory is sold and replaced
over a period.
πΌππ£πππ‘πππ¦ ππ’ππππ£ππ πππ‘ππ =Sales Turnover
Inventory
Debtors Turnover: Accounts receivable turnover is an efficiency ratio or activity ratio that measures how many times a business
can turn its accounts receivable into cash during a period
π·πππ‘πππ ππ’ππππ£ππ πππ‘ππ =Sales Turnover
Accounts recievables
Fixed Asset Turnover: The fixed-asset turnover ratio is a financial ratio of net sales to fixed assets
πΉππ₯ππ π΄π π ππ‘ ππ’ππππ£ππ πππ‘ππ =Sales Turnover
Fixed Assets
Current Asset Turnover: The current-asset turnover ratio is a financial ratio of net sales to fixed assets
πΆπ’πππππ‘ π΄π π ππ‘ ππ’ππππ£ππ πππ‘ππ =Sales Turnover
Current Assets
Operating Profit Margin: Operating margin is a measurement of what proportion of a Companyβs revenue is left over after
paying for variable costs of production such as wages, raw materials etc. It can be calculated by dividing a Companyβs operating
income (also known as βoperating profitβ) during a given period by its sales during the same period.
ππππππ‘πππ ππππππ‘ ππππππ =Operating profit
Sales Turnover
Net Profit Margin: Net profit margin is the percentage of revenue left after all expenses have been deducted from sales
πππ‘ ππππππ‘ ππππππ =Net profit
Sales Turnover
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SECTOR: CAPITAL GOODS - ELECTRICAL EQUIPMENT REPORTING DATE: 14TH AUGUST, 2017
JYOTI STRUCTURES LTD. www.jsl.in
Return on Assets: ROA tells you what earnings were generated from invested capital (assets)
π ππ‘π’ππ ππ π΄π π ππ‘π =Net profit
Total Assets
Return on equity/net worth: return on equity (ROE) is the amount of net income returned as a percentage of shareholdersβ
equity.
π ππ‘π’ππ ππ πΈππ’ππ‘π¦ =Net profit
Net worth
Return on Capital Employed: Return on capital employed (ROCE) is a financial ratio that measures a company's profitability
and the efficiency with which its capital is employed.
π ππ‘π’ππ ππ πΆππππ‘ππ πΈπππππ¦ππ =Net profit
Total Debt + Equity share capital
Current ratio: The current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts
over the next 12 months. It compares a firm's current assets to its current liabilities.
πΆπ’πππππ‘ πππ‘ππ =Current Assets
Current Liabilities
Quick ratio: The quick ratio is a measure of how well a Company can meet its short term financial liabilities.
ππ’πππ πππ‘ππ =Current Assets β Inventories
Current Liabilities
Cash ratio: The ratio of the liquid assets of a Company to its current liabilities.
ππ’πππ πππ‘ππ =Current Assets β Inventories β Account Recievables
Current Liabilities
Working Capital Turnover ratio: The working capital turnover ratio is also referred to as net sales to working capital. It indicates
a Company's effectiveness in using its working capital.
πππππππ πΆππππ‘ππ ππ’ππππ£ππ πππ‘ππ =πππππ ππ’ππππ£ππ
Current Assets β Current Liabilities
Debt to Equity ratio: The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion of
shareholders' equity and debt used to finance a company's assets.
π·πππ‘ π‘π πΈππ’ππ‘π¦ πππ‘ππ =πβπππ‘ ππππ π·πππ‘ + πΏπππ ππππ π·πππ‘
πππ‘ ππππ‘β
Interest Coverage ratio: The Interest coverage ratio is a debt ratio and profitability ratio used to determine how easily a
Company can pay interest on outstanding debt.
πΌππ‘ππππ π‘ πΆππ£πππππ π ππ‘ππ =πΈππππππ π΅πππππ πΌππ‘ππππ π‘ πππ πππ₯
πΉππππππ πΆππ π‘
Market Cap/Sales ratio: Market Cap/sales ratio, Priceβsales ratio, P/S ratio, or PSR, is a valuation metric for stocks. It is
calculated by dividing the company's market cap by the revenue in the most recent year; or, equivalently, divide the per-
share stock price by the per-share revenue.
ππππππ‘ πΆππ/πππππ πππ‘ππ =ππππππ‘ πΆππ
πππππ ππ’ππππ£ππ
Market Cap/ Net Worth ratio: It is a valuation ratio calculated by dividing Companyβs market cap to net worth.
ππππππ‘ πΆππ/πππ‘π€πππ‘β πππ‘ππ =ππππππ‘ πΆππ
πππ‘π€πππ‘β
Market Cap/ PAT ratio: It is a valuation ratio calculated by dividing Companyβs market cap to net profit.
ππππππ‘ πΆππ/ππ΄π πππ‘ππ =ππππππ‘ πΆππ
πππ‘ ππππππ‘
Market Cap/ EBITDA ratio: It is a valuation ratio calculated by dividing Companyβs market cap to EBITDA.
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SECTOR: CAPITAL GOODS - ELECTRICAL EQUIPMENT REPORTING DATE: 14TH AUGUST, 2017
JYOTI STRUCTURES LTD. www.jsl.in
ππππππ‘ πΆππ/πΈπ΅πΌππ·π΄ πππ‘ππ =ππππππ‘ πΆππ
πΈπ΅πΌππ·π΄
Trading Volume (shares) (avg. of 1 year): Average number of shares/day traded in 1 year
Trading volume (shares) (high in 1 year): Highest number of shares/day traded in 1 year
Trading volume (shares) (minimum in 1 year): Lowest number of shares traded on any one day in 1 year
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SECTOR: CAPITAL GOODS - ELECTRICAL EQUIPMENT REPORTING DATE: 14TH AUGUST, 2017
JYOTI STRUCTURES LTD. www.jsl.in
DISCLAIMER
Sources Company Information
Only publicly available data has been used while making the factsheet. Our data sources include: BSE, NSE, SEBI, Capitaline, Moneycontrol, Businessweek, Reuters, Annual Reports, IPO Documents and Company Website.
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Research Analyst: Waheed Shaikh