All, briefing my notes on JV partnership -
In FY2007, Sarla Performance Fibres floated its 100% subsidiary Sarla Overseas Holding Ltd. with capital outlay of Rs. 1.83 crs. This subsidiary is holding 40% stake in JV company in Honduras (Central America). This JV company became profitable in 15 months of its partnership.
JV company made a turnover and PAT of Rs. 27 crs. and 7 crs. in FY2008. Accordingly, Sarla Overseas Holding share was Rs. 9 crs. and Rs. 2 crs.
Sarla Overseas holding got 33.33% stake in MRK SA De C.V. which started the operations in the year 2010-2011. In FY2011, MRS SA De C.V had sales of Rs. 3.3 crs. and PAT of Rs. 1.3 crs.
In FY2012, Sarla Overseas Holding earned a net profit of Rs. 6 crs. This profit primarily came for 2 JVs only. The European and Turkey subsidiary had nominal profit/loss.
Since FY2013, company stopped consolidating JV numbers due to disputes. Although, the JVs were materially profitable by then. European and Turkey subs have no disputes.
Need to check with Mgmt. on reasons of disputes, business impact of commercial disputes, any liability, non-compete etc. But given, last reported performance, this dispute seems to be non-impactful.