September 12, 2012

Mumbai

Jyoti Limited

Ratings suspended

Total Bank Loan Facilities Rated	Rs. 1580 Million
Long-Term Rating	Suspended
Short-Term Rating	Suspended

(Refer to Annexure 1 for details on facilities)

CRISIL has suspended its ratings on the bank facilities of Jyoti Limited (JL). The suspension of ratings is on account of non-cooperation by JL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, JL is yet to provide adequate information to enable CRISIL to assess JL’s ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria ‘Information Availability Risk in Credit Ratings’.

About the Company

JL was set up in 1943 by reconstituting the engineering department of Vadodara (Gujarat)-based Alembic Chemical Works Company Ltd into an independent private limited company. JL initially manufactured hydraulic pumps. Headed by Mr. Rahul Amin, the company has evolved into a multi-product organisation with product lines comprising engineered pumps and project works, switchgears, hydroelectric sets, and rotating electric machines. Engineered pumps and project works accounted for about 63 per cent of JL’s revenue in 2010-11, hydel projects accounted for about 15 per cent, switchgears about 13.5 per cent, and rotating electric machines accounted for the remaining revenue. The company has aggressive capital expenditure plans of Rs.750 million towards expansion and technology upgradation over the next two years. This is expected to be funded in a debt:equity ratio of around 1.5 times.

For 2010-11, JL reported a profit after tax (PAT) of Rs.118.6 million on net sales of Rs.3.8 billion, against a PAT of Rs.80.7 million on net sales of Rs.2.9 billion for 2009-10.

Annexure 1 - Details of various bank facilities

Current facilities			Previous facilities
Facility	Amount (Rs. Million)	Rating	Facility	Amount (Rs. Million)	Rating
Working Capital Demand Loan	262	Suspended	Working Capital Demand Loan	262	CRISIL BBB/Stable
Term Loan	30.9	Suspended	Term Loan	30.9	CRISIL BBB/Stable
Letter of Credit	294	Suspended	Letter of Credit	294	CRISIL A3+
Cash Credit	131.9	Suspended	Cash Credit	131.9	CRISIL BBB/Stable
Bank Guarantee	807.5	Suspended	Bank Guarantee	807.5	CRISIL A3+
Bill Purchase-Discounting Facility	53.7	Suspended	Bill Purchase-Discounting Facility	53.7	CRISIL A3+
Total	1580	--	Total	1580	--

Media Contacts	Analytical Contacts	CRISIL Rating Desk
Shweta Ramchandani Communications and Brand Management CRISIL Limited Tel: +91-22- 3342 1886 E-mail: shweta.ramchandani@crisil.com Tanuja Abhinandan Communications and Brand Management CRISIL Limited Tel: +91-22- 3342 1818 Email: tanuja.abhinandan@crisil.com	Pawan Agrawal Senior Director - CRISIL Rating Tel: +91-22-3342 3301 Email:pawan.agrawal@crisil.com Manoj Damle Director - CRISIL Ratings Tel: +91-22-3342 3342 Email:manoj.damle@crisil.com	Tel: +91-22-3342 3047/3342 3064 Email:CRISILratingdesk@crisil.com

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Last updated: April 30, 2012

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September 12, 2012	http://www.crisil.com