Jackson Investments Limited , a company listed on the Indian stock exchanges, has received requests from four members of its promoter group to reclassify their status from 'Promoter/Promoter Group' to 'Public Category'. This move could potentially alter the company's shareholding structure and public float.

Reclassification Requests

The four individuals seeking reclassification are:

1. Mahavir Prasad Saraswat: Holds 100,000 shares (0.03% of total shareholding)
2. Raj Kumar Saraswat: Holds 150,000 shares (0.05% of total shareholding)
3. Sajjan Kumar Saraswat: Holds 150,000 shares (0.05% of total shareholding)
4. Sunil Poddar: Holds 154,000 shares (0.05% of total shareholding)

Collectively, these four members hold 554,000 shares, representing 0.18% of the company's total shareholding.

Reasons for Reclassification

All four individuals have provided similar reasons for their reclassification requests:

• They are not involved in the management or day-to-day affairs of the company.
• They do not have any rights to nominate directors to the company's board.
• They cannot influence or control the management or policy decisions of Jackson Investments Limited.

Undertakings Provided

Each of the four promoter group members has submitted undertakings stating that they:

• Hold less than 10% of the voting rights in the company.
• Do not exercise control over the affairs of Jackson Investments Limited.
• Do not have any special rights through formal or informal agreements.
• Are not represented on the Board of Directors of the company.
• Are not acting as Key Managerial Persons in the company.

Implications

If approved, this reclassification would result in a slight increase in the public shareholding of Jackson Investments Limited. However, given the small percentage of shares involved (0.18% in total), the impact on the overall shareholding structure is likely to be minimal.

The reclassification requests will need to be reviewed and approved by the company's board and shareholders, as well as by the relevant regulatory authorities, before they can take effect.

This move by the four promoter group members aligns with regulatory efforts to enhance transparency in shareholding structures and to clearly differentiate between promoter holdings and public float in listed companies.

Jackson Investments Limited , a Kolkata-based finance and investment company, has reported a significant increase in its net profit for the first quarter. The company's performance shows marked improvement across key financial metrics, despite facing some ongoing challenges.

Financial Highlights

Key Performance Drivers

The company's improved performance can be attributed to several factors:

1. Reduced Expenses: Total expenses decreased by 14.81%, primarily due to a significant reduction in other expenses, which fell to ₹4.89 from ₹7.21 in the same quarter last year.

2. Operational Efficiency: Despite a marginal increase in revenue, the company managed to substantially increase its profit before tax, indicating improved operational efficiency.

3. Employee Benefit Expenses: There was a slight increase in employee benefit expenses to ₹5.18 from ₹4.61, suggesting potential investments in human resources.

Financial Position

• Investments in Unlisted Companies: The company holds investments valued at ₹778.43 in various unlisted companies.
• Paid-up Equity Share Capital: Maintains a paid-up equity share capital of ₹2,907.08.

Auditor's Observations

The limited review report by the company's auditors, S P M L & Associates, highlighted several points of interest:

1. ROC Inquiry: An ongoing inquiry by the Registrar of Companies regarding past loan transactions.
2. Valuation Uncertainties: The fair value assessment of investments in unlisted companies is pending and will be conducted at the financial year-end.
3. Non-Recognition of Interest Income: Interest income on some outstanding loans and advances has not been recognized.
4. Stock-in-Trade Valuation: Shares in listed companies not currently traded on any stock exchange are valued at a nominal value of ₹1 per share.

Management's Stance

The management of Jackson Investments Limited has expressed confidence in their ability to navigate the challenges highlighted by the auditors. They do not expect any negative outcomes from the ongoing ROC inquiry and anticipate recovering the principal amounts from outstanding loans.

Conclusion

While Jackson Investments Limited has shown impressive growth in net profit for Q1, investors should note the various points raised by the auditors. The company's ability to maintain this growth trajectory while addressing these concerns will be crucial for its future performance.

Note: All financial figures are in Indian Rupees (₹) and lakhs, as per the company's financial report.