MIRA
INFORM REPORT
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Report Date : |
27.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
JAY CHEMICAL INDUSTRIES LIMITED |
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Registered Office : |
Jay House, Nr Saffron Building Panchavati, Ellisbridge, Ahmedabad,
Gujarat |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
31.03.2000 |
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Com. Reg. No.: |
037689 |
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CIN No.: [Company
Identification No.] |
U24119GJ2000PLC037683 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
AHNJ00516F |
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Legal Form : |
Private limited liability company |
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Line of Business : |
Manufacturer, Exporter and Importer of Dyes |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 1100000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject initially established as a Proprietary Concern, later converted into a partnership Concern and finally converted into a closely held Public Limited Company on 31st March 2000. The company again converted into a Private Limited company in 2004 Subject is engaged in the business of manufacturing, marketing, exporting of Dyes and Dye intermediates. Directors are well experienced in their business and they are very resourceful too. The Company’s business is progressing well. Trade relations are reported as fair. Payments are usually made as per Commitments. It can be considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
Jay House, Nr Saffron Building Panchavati, Ellisbridge, Ahmedabad,
Gujarat |
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Tel. No.: |
91-79-26423363 |
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E-Mail : |
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Website : |
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Head Office : |
Jay House, Panchwati Circle, ambawadi Ahmedabad:380 006, Gujarat India |
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Tel. No.: |
91-79-26423363 |
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Fax No.: |
91-79-26425763 |
DIRECTORS
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Name : |
Mr. Jayendra Kumar H. Kharawala |
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Designation : |
Managing Director |
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Address : |
Sharda Bhuvan Maharasta Soc. Mithakhali Ahmedabad 6 |
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Date of Birth/Age : |
28.02.1939 |
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Date of Appointment : |
30.03.2000 |
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Name : |
Mr. GreevenJ. Kharawala |
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Designation : |
Director |
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Address : |
Sharda Bhuvan Maharasta Soc. Mithakhali Ahmedabad 6 |
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Date of Birth/Age : |
29.09.1974 |
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Date of Appointment : |
30.03.2000 |
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Name : |
Mr. Dakshesh M. Machhar |
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Designation : |
Director |
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Address : |
10, Arvachin Society, Nr. Amidhara Society, Bopal Ahmedabad |
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Date of Birth/Age : |
29.09.1966 |
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Date of Appointment : |
30.03.2003 |
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Name : |
Mr. Ravi Babulal Kabra |
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Designation : |
Director |
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Address : |
283c, Satyagrah Chhavni, Lane No:15, Satellite Road, Ahmedabad.15 |
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Date of Birth/Age : |
12.05.1976 |
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Date of Appointment : |
30.03.2003 |
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Name : |
Mr. Sambhunath S. Charaverty |
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Designation : |
Director |
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Address : |
B-71, Venus Appt, B/h Ashima Tower,
Bodakdev Road, Vastrapur, Ahmedabad.15 |
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Date of Birth/Age : |
28.08.1942 |
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Date of Appointment : |
01.04.2005 |
MAJOR SHAREHOLDERS
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Names of Shareholders |
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No. of Shares |
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Jayendrakumar H. Kharawala |
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860000 |
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Greeven J. Kharawala |
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15000 |
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Mokshadaben G. Kharawala |
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5000 |
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Ushaben J. Kharawala |
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5000 |
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Yogesh G. Dubai |
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5000 |
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Jay Infa Trade Private Limited N.A |
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5000 |
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J. H. Kharawala- HUFN.A. |
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4975 |
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J. H. Kharawala Private Limited N.A |
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25 |
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Total |
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900000 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer, Exporter and Importer of Dyes |
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Products : |
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Exports : |
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Countries : |
Japan, Korea, Taiwan, HongKong, Latin America, Australia, South Africa, Bangladesh and Pakistan |
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Imports : |
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Countries : |
Europe, UK, Switzerland, Germany and Japan |
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Terms : |
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Selling : |
L/C (90 days) terms |
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Purchasing : |
L/C upto 120 days terms |
PRODUCTION STATUS
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Particulars |
Unit |
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Actual
Production |
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Dyes |
9000.000 |
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7809.013 |
GENERAL
INFORMATION
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Suppliers : |
Some of its' major suppliers are as under : · Murtex Limited, UK · Lonza, Switzerland · K. Sakai & Company, Japan · Bayer AG, Germany · Kuffman & Company, Germany · Reliance Industries Limited · Bhor Industries Limited · Colour Chemicals Limited · Uni Impex India Limited · Abir Chemicals Private Limited. |
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No. of Employees : |
250 persons -- 50 persons in office and 200 persons at factory |
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Bankers : |
Bank of Baroda Ashram Road, Branch Ahmedabad:380009, Gujarat, India Bank of Baroda, Panchwati Branch, Ahmedabad - 380 009, Gujarat, India. Bank of Baroda, Kaligam Branch, Ahmedabad, Gujarat, India. State Bank of India, Rakhial Branch, Ahmedabad and Cargo Complex, Ahmedabad, Gujarat, India. Bank Of India, Ambawadi Branch, Ahmedabad, Gujarat, India. Oriental Bank of Commerce, Ashram Road Branch, Ahmedabad, Gujarat, India. Colour Mercantile Co. Operative Bank Limited, Ahmedabad, Gujarat, India |
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Facilities : |
Cash Credit limit : Rs.10.000 millions (25%- raw material, 30% WIP, 50% Book Debt) The Company enjoy’s credit facility of Rs. 207.760
millions as on 21st February 2002 |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Shah and Nagori Chartered Accountants |
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Address : |
T/1, Dhaval Complex, B/H Navrangpura P.O. Navrangpura
Ahmedabad:380009, Gujarat |
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Associates/Subsidiaries : |
Jayendrakumar Hiralal Kharawala Private Limited (as same management holding 81% capital) Jyoti Plastic Works Jashika Trading & Investments Private Limited Janardhan Trading & Investments Private Limited Jaldhara Trading & Investments Private Limited Greevan Trading & Investments Private Limited Jayendrakumar Trading & Investments Private Limited Janmejaya Trading & Investments Private Limited Greeva Trading & Investments Private Limited J. S. Kharawala Private Limited Jayendrakumar and Company Jay Enterprises Prem Chemicals India Textile Products Jushika Corporation, India. Ronuk Dyes and Chemicals Jay Containers |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1000000 |
Equity Shares |
Rs.10/- each |
Rs.10.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
900000 |
Equity Shares |
Rs.10/-each |
Rs.9.000
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
9.000 |
9.000 |
9.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
278.438 |
249.022 |
228.466 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
287.438 |
258.022 |
237.466 |
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LOAN FUNDS |
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1] Secured Loans |
215.811 |
194.348 |
125.188 |
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2] Unsecured Loans |
18.990 |
15.811 |
23.126 |
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TOTAL BORROWING |
234.801 |
210.159 |
148.314 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
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TOTAL |
522.239 |
468.181 |
385.780 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
102.059 |
101.375 |
96.194 |
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Capital work-in-progress |
0.000 |
0.000 |
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INVESTMENT |
45.671 |
45.671 |
40.471 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
312.924
|
278.660 |
164.306 |
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Sundry Debtors |
285.624
|
234.279 |
233.516 |
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Cash & Bank Balances |
12.723
|
6.990 |
9.338 |
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Other Current Assets |
32.000
|
88.200 |
0.000 |
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Loans & Advances |
82.664
|
95.213 |
79.583 |
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Total
Current Assets |
725.935
|
703.342 |
486.743 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
310.185
|
345.964 |
211.350 |
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Provisions |
41.241
|
36.243 |
26.292 |
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Total
Current Liabilities |
351.426
|
382.207 |
237.642 |
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Net Current Assets |
374.509
|
321.135 |
249.101 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.014 |
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TOTAL |
522.239 |
468.181 |
385.780 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
1211.522 |
1133.736 |
1005.380 |
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Other Income |
43.715 |
52.414 |
0.000 |
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Total Income |
1255.237 |
1186.510 |
1005.380 |
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Profit/(Loss) Before Tax |
29.520 |
21.454 |
47.719 |
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Provision for Taxation |
0.000 |
0.000 |
26.294 |
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Profit/(Loss) After Tax |
29.520 |
21.454 |
21.425 |
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Earnings in Foreign Currency : |
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Manufacturing |
823.173 |
728.044 |
728.044 |
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Trading |
173.319 |
36.167 |
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Total Earnings |
996.492 |
764.211 |
728.044 |
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Imports : |
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Raw Materials |
177.925 |
124.469 |
124.469 |
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Total Imports |
177.925 |
124.469 |
124.469 |
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Expenditures : |
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Raw Material Consumed |
864.954 |
861.768 |
0.000 |
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Purchases made for re-sale |
34.996 |
25.485 |
0.000 |
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Consumption of stores and spares parts |
74.747 |
81.353 |
0.000 |
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Increase/(Decrease) in Finished Goods |
(23.324) |
(59.065) |
0.000 |
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Salaries, Wages, Bonus, etc. |
37.147 |
31.497 |
0.000 |
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Managerial Remuneration |
6.227 |
2.291 |
0.000 |
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Payment to Auditors |
0.129 |
0.080 |
0.000 |
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Interest |
30.632 |
21.486 |
0.000 |
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Insurance Expenses |
54.348 |
37.957 |
0.000 |
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Power & Fuel |
92.541 |
76.018 |
0.000 |
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Depreciation & Amortization |
13.931 |
21.192 |
0.000 |
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Other Expenditure |
39.389 |
64.634 |
7.531 |
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Total Expenditure |
1225.717 |
1164.696 |
7.531 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
2.35
|
1.80 |
2.131
|
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Net Profit Margin (PBT/Sales) |
(%) |
2.43
|
1.89 |
4.746
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Return on Total Assets (PBT/Total Assets} |
(%) |
3.56
|
1.80 |
8.123
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Return on Investment (ROI) (PBT/Networth) |
|
0.10
|
0.83 |
0.200
|
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Debt Equity Ratio (Total Liability/Networth) |
|
1.22
|
1.48 |
1.625
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Current Ratio (Current Asset/Current Liability) |
|
2.06
|
1.84 |
0.196
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LOCAL AGENCY
FURTHER INFORMATION
|
This form is for |
Modification of Charge |
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Charge
identification number of the charge to be modified |
900099182 |
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Corporate
identity number of the company |
U24119GJ2000PLC037683 |
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Name of the
company |
Jay Chemicals
Industries Limited |
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Address of the registered
office or of the principal place of
business in India of the company |
Jay House Nr.
SaffronBuilding Panchavati Ellisbridge, Ahmedabad, Gujarat India |
|
Type of charge |
Book Debts,
Movable Property |
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Particular of
charge holder |
Bank of Baroda
Ashram Road, Ahmedabad:380009, Gujarat |
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Nature of
description of the instrument creating or modifying the charge |
Hypothecation as
per Agreement |
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Date of
instrument Creating the charge |
17.01.2007 |
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Amount secured by
the charge |
Rs.557.000
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest
: As per Agreement Terms of
repayment: As per Agreement Margin: As per
Agreement Extent and
operation of the charge: As per Agreement Others: As per
Agreement |
|
Short particulars
of the property charged |
Hypothecation of
Goods, book Debts, Movablre, Property, Vechicals at 114,GIDC, ODHAV, |
|
Date of latest
modification prior to the present modification |
-- |
|
Particulars of
the present modification |
Hypothication
charged amount increased Forms Rs.447.500 Millions to Rs. 557.000 Millions |
Business Message
At JCIL production of dyes was started in 1967 by Mr Jayendra KHARAWALA. The Kharawala family has been dealing in dyes and chemicals since last six generations and were amongst the first six families of India to deal in dyes and chemicals. The company has grown from a single product, 5 man company to over 150 different dyes and 250 people with a turnover of over USD 20 Mn.
Some of the stregnths of JCIL are given below
1)largest self manufactured range of Reactive Dyes in India
2)One of the largest batch sizes in India.
3)Captive Power Plant
4)Captive Ice Plant
5)Largest spray dryer for dyes in India (2000lts water evap.)
6)Largest Nauta-mixer for mixing of dyes in India (10mt)
7)First to implement on-line dedusting facilities (40mt lot)
8)Only company in India to have pilot plant with all kinds of facilities.
9)1st Indian company to sell 1000mt of Reactive Dyes in a single month
10)ISO 9001-2000 certified
Profile
The Kharawalas' are among the first six families in India to begin
dealing in Dyestuffs. For nearly 30 years, starting from the early 1920's,
the family were representatives of Ciba. Dyestuffs have been
the lifeline of this family for over three generations now.
J.H.Kharawala laid the roots of Jay Chemical Industries in 1967. Direct
Turquoise Blue was the first manufactured product and ever since, the company's
name has been synonymous with Turquoise Blues.
Under the guiding light of its President and the dynamism of its young,
charismatic son, Greeven J. Kharawala, Jay Chemical Industries has emerged as a
front runner in the field of Dyestuff manufacturing for
the Textile Dyeing and Printing, Paper and other Industries.
Milestones :
1967 Jay Chemical Industries - Direct Turq. Blue plant commenced
1972 Agency network development started on an all India basis
1979 Jay Enterprise - Reactive Dyes plant
1983 J.H.Kharawala Pvt. Ltd. (Unit I) - Reactive Turq. Blue plant
Technical know-how for manufacturing Reactive and
Direct dyes given to
Thai Ambica Chemical Co. Ltd., Bangkok
1986 Prem Chemicals - Copper Phthalocyanine Blue crude (CPC)
Trading Partners for The Far East, Bangladesh and Pakistan set up during 1986-1987
1988 Greeva - Plant for Koch Acid, K-Acid, Gamma Acid and other intermediates
Jushika Corporation - Reactive Dyes plant
India Textile Products - Reactive Dyes plant
1989 Ronuk Dyes & Chemicals - Reactive Dyes plant
1991 Jayendrakumar & Co. - Pigment Green 7 plant
J.H.Kharawala Pvt. Ltd. (Unit II) - Vinyl Sulphone plant
Jay Containers - M.S. drum manufacturing plant
1995 Reactive Blacks manufacturing commenced in bulk
1996 Centralized Quality Control laboratory established
1997 Jay House - The new Corporate Headquarters and Office
Continuous Plant for Vinyl Sulphone started
Consolidation for the group's manufacturing activities begins
1998 Separate R&D lab starts functioning
New plant for Turquoise Blue commenced
Pilot plant commenced
1999 New plant for Reactive Dyes commenced
Consolidation of the group's manufacturing activities completed
Separate plants for Turquoise Blue, Reactive Blacks and other Reactive dyes made operational within the
same premises
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction registered
against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.43.15 |
|
UK Pound |
1 |
Rs.85.22 |
|
Euro |
1 |
Rs.57.63 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
48 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|