Bizbits

The outstanding rating of JK Industries Limited8217;s JKIL Rs 141.82 crore non convertible debenture issue have been downgraded by Crisil from BBB to BB. According to a Crisil release, the rating revision is on account of JKIL8217;s continuous increase in financial risk as can be observed by the high gearing levels, low coverage levels and large repayments compared to net cash accruals. The revision in ratings is also on account of the largeexposure of the JKIL in other group companies which is not yielding any cash returns.

Maharashtra Scooters net up 15.8

MUMBAI: Maharashtra Scooters Ltd MSL reported a 15.8 per cent growth in net profit to Rs 17.11 crore for the year ended March 1999. It has announced a dividend of Rs 2 per share. The dividend will absorb Rs 2.29 crore. Last year too MSL paid a similar dividend. Net profit is up from Rs 14.77 crore to Rs 17.11 crore.

MSL achieved a modest growth despite difficult conditions in the scooter segment. Sales is up by 10.31 per cent from 1,38,3377 numbers in the previous year to 1,52,595 during the year under review. Sales and other income in aggregate has recorded an increase of 16 per cent over the previous year from Rs 275.84 crore to Rs 320.98 crore. Scooter production was up 5.96 per cent from 1,45,016 during last year to 1,53,662 during 1998-98. After paying out the dividend of Rs 2.29 crore, Rs 14.60 crore is being transferred to the reserves taking it to Rs 127.85 crore fromRs 113.25.