MIRA INFORM REPORT

 

 

Report Date :

10.02.2007

 

IDENTIFICATION DETAILS

 

Name :

JAIN IRRIGATION SYSTEMS LIMITED

 

 

Registered Office :

Jain Fields, Jain Platic Park, National Highway No. 6, P. O. Box 72, Bambhori, Jalgaon – 425 001, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

30.12.1986

 

 

Com. Reg. No.:

11-42028

 

 

IEC No.:

0388080361

 

 

CIN No.:

[Company Identification No.]

L29120MH1986PLC042028

 

 

TAN No.:

(Tax Deduction & Collection Account No.)

NSKJ00066D

 

 

PAN No.:

(Permanent Account No.)

AAACJ7163Q

 

 

Legal Form :

A Public Limited Liability company. The company’s shares are listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturing and Marketing of Extruded-Moulded, Assembled / Fabricated Plastic Products / Items, Micro Irrigation Systems, Polytube and Laterals, Injection Moulded Components, Plastic Products, PVC Sheets, PC Sheets, HDPE Pipes and Fittings (for sprinkler systems), PVC Pipes and Fabricated Fittings, Metal Filter and Filtration Equipments, Dies & Moulds and Tools Dehydrated Onions and Vegetables, Papuan Powder, Tissue Culture Plants, Water Soluble Fertilisers and Solar Water Heating Systems.

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 14000000

 

 

Status :

Good

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well-established and reputed company of Jain Irrigation Group or Jain Group. The company’s shares are listed on the stock exchanges. Available information indicates high financial responsibility of the company and it’s directors. Their trade relations are fair. Payments are usually correct and as per commitments.

 

The company can be considered good for normal business dealings at usual trade terms and conditions.

 

LOCATIONS

 

Registered Office/ Head office :

Jain Fields, Jain Platic Park, National Highway No. 6, P. O. Box 72, Bambhori, Jalgaon – 425 001, Maharashtra, INDIA.

Tel. No.:

91–257–22220022 / 22250011 / 2288011 / 22

Fax No.:

91–257–2221122 / 2251111 / 2258111 / 22

E-Mail :

1.       jisl@jains.com

2.       agricul@bom6.vsnl.net.in

3.       plasticpark@jains.com

Website :

http://www.jains.com

Area :

71 Acres

Location :

Owned

 

 

Factory 1 :

Jain View

Dhobikuva, Muvad, Padra, Vadodra, Gujarat

Tel. No.:

91-2662-267281/267400

Fax No.:

91-2662-267363

E-Mail :

jianbaroda@jains.com

Area :

4 Acres

Location :

Owned

 

 

Factory 2 :

Jain Plastic Park,

N.H.No. 6, P.O. Box. 72, Bambhori, Jalgaon – 425 001, Maharashtra, India

Tel. No.:

91-257-2258011/22

Fax No.:

91-257-2258111122

E-Mail :

plasticpark@jains.com , jisl@jains.com

Area :

71 Acres

Location :

Owned

 

 

Factory 3 :

Jain Agri Park, Jain Hills

Shirsoli Road, P.O. Box: 72 Bambhori, Jalgaon – 425 001, Maharashtra, India

Tel. No.:

91-257-2260011122, 2260288

Fax No.:

91-257-2261111122/33

E-Mail :

agripark@jains.com

Area :

274 Acres

Location :

Owned

 

 

Factory 4 :

Jain Food Park, Jain Valley

Shirsoli Road, P.O. Box: 20, District Jalgaon-425001

Tel. No.:

91-257-2260033/44, 2260288

Fax No.:

91-257-2261144

E-Mail :

foodpark@jains.com

Area :

236 Acres

Location :

Owned

 

 

Factory 5 :

South Africa Office: Johannesburg-South Africa

JISAL Africa Pty Limited

Block “D” 367 Surrey Avenue, Randburg 2194

Tel. No.:

27-11-7870000

Fax No.:

27-11-7870453

E-Mail :

foodpark@jain.com

 

 

Factory 6 :

UK Office : UK (Tiwickenham)

Jain (Europe) Limited

Excel Plastic Distribution Limited

23-25 Kings Street, Twickenham, TWI 3 SD, UK

Tel. No.:

44-208-8928988

Fax No.:

44-208-8928988

E-Mail :

excel@exceluk.co.uk

 

 

Factory 7 :

Hyderabad (Food Plant)

Jain Orchards: Juice Park, S No. 587 & 588, Kondamadgu Village, Bibi Nagar Mandal, District : Nalgonda, Hyderabad – 508126, Andhra Pradesh

Tel. No.:

91-8685-277302,3

Fax No.:

91-8685-277305

E-Mail :

foodplanthyd@jains.com

Area :

11 Acres

Location :

Owned

 

 

Factory 8 :

Dindori

Tel. No.:

91-2557-289122, 289133

Fax No.:

91-2557-221399

E-Mail :

jaindindori@jains.com

 

 

Factory 9 :

Sinnar

Tel. No.:

91-2551-230717,230515

Fax No.:

91-2551- 230522

E-Mail :

jainsinnar@jains.com

 

 

Factory 10 :

Sendhwa

Tel. No.:

91-7281-228039/40

Fax No.:

91-7281-223099 PP

 

 

Factory 11 :

Udumalpet

Telefax :

91-4252-278401/2

Fax No.:

91-4252-278403

E-Mail :

jainudumalpet@jains.com

 

 

Factory 12 :

Vadodara

Tel. No.:

91-2662-267281, 267400

Telefax :

91-2662-267363

E-Mail :

jainbaroda@jains.com

 

 

Factory 13 :

Jain View

C/o Oroent Vegertexpo Limited

At. Post: Walkhed, Tal: Dindori, Nashik, Maharashtra

Tel. No.:

91-2557-289122/289133

Fax No.:

91-2557-221399

E-Mail :

jaindindori@jains.com

 

 

Branches :

Ahmedabad

Tel. No.:

91-79-26421704

Fax No.:

91-79-26421612

E-Mail :

jainahmedabad@jains.com

 

 

Branches :

Depot

Tel. No.:

91-2718-261691

E-Mail :

ahmedabaddepot@jains.com

 

 

Branches :

Ahmednagar

Tel. No.:

91-241-2415480

Fax No.:

91-241-2450909 PP

E-Mail :

jainahmednagar@jains.com

 

 

Branches :

Amravati

Tel. No.:

91-721-2674737, 2671486

Fax No.:

91-721-2670363 (PP)

E-Mail :

jainamravati@jains.com

 

 

Branches :

Depot

Tel. No.:

91-7221-227123

E-Mail :

amravatidepot@jains.com

 

 

Branches :

Aurangabad

Tel. No.:

91-240-2489666,2489777

Fax No.:

91-240-2470185 PP

E-Mail :

jainaurangabad@jains.com

 

 

Branches :

Bangalore

Tel. No.:

91-80-25361257, 25548920

Fax No.:

91-80-25548921

E-Mail :

jainbangalore@jains.com

 

 

Branches :

Baramati Depot

Tel. No.:

91-2112-243302

Fax No.:

91-2112-243738

E-Mail :

jainbaramati@jains.com

 

 

Branches :

Bijapur

Telefax No.:

91-835-222307 7, 2223222

E-Mail :

jainbijapur@jains.com

 

 

Branches :

Chennai

Tel. No.:

91-44-24339794, 52010501

Telefax No.:

91-44-24328710

E-Mail :

jainchennai@jains.com

 

 

Branches :

Coimbatore

Tel. No.:

91-422-2349318, 5587750

E-Mail :

jaincoimtaatore@jains.com

 

 

Branches :

Hyderabad

Tel. No.:

91-40- 23322476, 23394593

Fax No.:

91-40- 23327589

E-Mail :

jainhyderabad@jains.com

 

 

Branches :

Depot

Tel. No.:

91-8685-277302,3

Fax No.:

277305

E-Mail :

hyderabaddepot@jains.com

 

 

Branches :

Indore

Tel. No.:

91-731-2513189, 2524856, 5542288

Fax No.:

91-731-25066011

E-Mail :

J3inindore@jains.com

 

 

Branches :

Jaipur

Tel. No.:

91-731-2141-2203515

Fax No.:

91-731-2141-2207052 PP

E-Mail :

jainjaipur@jains.com

 

 

Branches :

Jalgaon • Jain Shop

Tel. No.:

91-731-2257-2220077

Fax No.:

91-731-22572221177

 

 

Branches :

Jalgaon - Jain Show Room

Tel. No.:

91-257-2228509,

E-Mail :

jainshowroom@jains.com

 

 

Branches :

Mumbai (India)

Jain House

41/43, Police Court Lane, Fore Mumbai-400001

Tel. No.:

91-22-22610011,22620011,22670011

Fax No.:

91-22-22621177,22641177

E-Mail :

jainmumbai@jains.com

 

 

Branches :

Nagpur

E-Mail :

jainnagpur@jains.com

 

 

Branches :

Handed

Tel. No.:

91-2462-274046

Fax No.:

91-2462-223952 (PP)

E-Mail :

jainnanded@jains.com

 

 

Branches :

Nasik

Tel. No.:

91-253-2592718,2590915

Fax No.:

91-253-2593188,|PP)

E-Mail :

jainnasik@jains.com

 

 

Branches :

New Delhi

Tel. No.:

91-11 -26493159,26493160, 51748412

Fax No.:

91-11-51748409

E-Mail :

jainnewdelhi@jains.com

 

 

Branches :

Pune :

Tel. No.:

91-20-25434872, 73 , 25440373

Fax No.:

91-20-25411920,

E-Mail :

jainpune@jains.com

 

 

Branches :

Pandharpur

Tel. No.:

91-2188-222637

 

 

Branches :

Raipur

Tel. No.:

91-771-5535987

E-Mail :

jainraipur@jains.com

 

 

Branches :

Ratnagiri

Telefax No.:

91-2352-221706

E-Mail :

jainratnagiri@jains.com

 

 

Branches :

Sangli

Tel. No.:

91-233-2333477

Fax No.:

91-233-2332194

E-Mail :

jainsangli@jains.com

 

 

Branches :

Solapur

Tel. No.:

91-217-2357395

Telefax No.:

91-217-2357220

E-Mail :

jainsolapur@jains.com

 

 

Branches :

Sivaganga

Tel. No.:

04575-243289

E-Mail :

jainsivaganga@jains.com

 

 

Branches :

Thane

Tel. No.:

91-22-25443992

Fax No.:

91-22-25443976

E-Mail :

jainthane@jains.com

 

 

Branches :

Vadodara

Tel. No.:

91-265-2356727, 2356737, 2356575

Fax No.:

91-265-2356525

E-Mail :

jaingujarat@jains.com

 

DIRECTORS

 

Name :

Mr. Anil Bavarlal Jain

Designation :

Managing Director

Address:

Jain House, 7/8, Suyog Colony, Near Girna Water Tank, Jalgaon – 425 002, Maharashtra

Date of Birth/Age :

40 years

Qualification :

B. Com., LL.B.

Date of Joining:

12th January, 1987

Experience:

21 years

Previous Employment:

Jain Brothers Industries – Partner

 

 

Name :

Mr. Ajit B. Jain

Designation :

Whole Time Director and Chief Operating Officer

Address:

Jain House, 7/8, Suyog Colony, Near Girna Water Tank, Jalgaon – 425 002, Maharashtra

Date of Birth/Age :

39 years

Qualification:

B.E.

Experience:

21 years

Date of Joining:

11th January, 1985

 

 

Name :

Mr. Bhavarlal H. Jain

Designation :

Chairman

Address :

Jain House, 7/8, Suyog Colony, Near Girna Water Tank, Jalgaon – 425 002, Maharashtra

Date of Birth/Age :

68 years

Qualification :

B. Com., LL.B.

Experience:

45 years

 

 

Name :

Mr. N.V. Khote

Designation :

Co-Chairman (Resigned w.e.f. 05.09.2005)

Address:

B-1, Bageshree Shanker Ghanekar Marg, Prabhadevi, Mumbai – 400 025

Qualification:

M.Sc.

Experience:

44 years

 

 

Name :

Mr. Anirudha Ramkrishna Barwe

Designation :

Director

Address:

B-1, Bageshree Shanker Ghanekar Marg, Prabhadevi, Mumbai – 400 025

Date of Birth/Age :

67 years

Qualification:

M.Sc. (Maths)

Experience:

47 years

 

 

Name :

Mr. Anup Mohan Jacob

Designation :

Director (Resigned w.e.f. 05,09.2005)

Address:

345, California Street, Suite 1770, Sanfrancisco Chartered Accountants 94104, USA

Experience:

10 years

 

 

Name :

Mr. Bhikhubhai Shantilal Trivedi

Designation :

Director (Resigned w.e.f. 05.09.2005)

Address:

C-603, Muni Darshan, Behind Sagar Plaza Building, Near Bank of Baroda, M. G. Road, Ghatkopar (West), Mumbai – 400 086

Qualification:

Chartered Accountants

Experience:

40 years

 

 

Name :

Mr. Bijash Jamnadas Thakker

Designation :

Director (Resigned w.e.f. 05.09.2005)

 

 

Name :

Mr. John George Sylvia

Designation :

Director (Resigned w.e.f. 05.09.2005)

 

 

Name :

Mr. Puneet Madanlal Bhatia

Designation :

Director (Resigned w.e.f. 05.09.2005)

 

 

Name :

Mr. Gerardo Benitez Pelaez

Designation :

Director (Resigned w.e.f. 06.09.2005)

 

 

Name :

Mr. Vasant V. Warty

Designation :

Director (Nominee SBII

Date of Birth/Age :

63 years

Address:

6 Umesh Society, N P thakur Road, New Rajpuriabaug, Vile Parle (E) Mumbai-400057

Qualification:

BA, LLB, CAIIB

Experience:

40 years

 

 

Name :

Mr. Ravendran Krishnasamy

Designation :

Additional Director (w.e.f. 10.01.2005)

 

KEY EXECUTIVES

 

Name :

Mr. Ashok B. Jain

Designation :

President

Address:

Jain House, 7/8, Suyog Colony, Near Girna Water Tank, Jalgaon – 425 002, Maharashtra

Date of Birth/Age :

42 years

Qualification:

M. Com.

Experience:

23 years

Date of Joining:

12th January, 1987

Previous Employment:

Jain Brothers Industries – Partner

 

 

Name :

Mr. Atul B. Jain

Designation :

President

Date of Birth/Age :

36 years

Address:

Jain House, 7/8, Suyog Colony, Near Girna Water Tank, Jalgaon – 425 002, Maharashtra

Qualification:

B. Com.

Experience:

12 years

 

 

Name :

Mr. Atul B. Jain

Designation :

Chief Marketing Officer

 

 

Name :

Mr. Rajnikant B. Jain

Designation :

Chief Technical Officer (Food Park)

Date of Birth/Age :

50 years

Address:

Jain House, 5/A, Suyog Colony, Near Girna Water Tank, Jalgaon – 425 002, Maharashtra

Qualification:

B. Tech

Experience:

24 years

 

 

Name :

R. Swaminathan

Designation :

Chief Technical Officer (Plastic Park)

Date of Birth/Age :

54 years

Address:

Jain House, 5/B, Suyog Colony, Near Girna Water Tank, Jalgaon – 425 002, Maharashtra

Qualification:

B. Tech (Chem)

Experience:

31 years

 

 

Name :

Mr. A.V. Ghodgaonkar

Designation :

Company Secretary

 

 

Name :

Mr. Ramesh C A Jain

Designation :

Director

Address:

6 Umesh Society, N P thakur Road, New Rajpuriabaug, Vile Parle (E) Mumbai-400057

Date of Birth/Age :

61 years

Qualification:

BA, LLB

Experience:

35 years

 

 

Name :

Mrs. Radhika C Pereira

Designation :

Director

Date of Birth/Age :

35 years

Address:

Dodhat Pereira and Associates, 1018, 10th Floor, Maker Chamber V, Nariman Point, Mumbai –400021

Qualification:

Bsc. LLB, LLM (Cambridge)

Experience:

15 years

 

 

MAJOR SHAREHOLDERS

 

Names of Shareholders

No. of Shares

Percentage of Holding

Individuals / Hindu Undivided Family

17,774,049

30.55 %

Mutual funds / UTI

8,031,633

13.81 %

Financial Institutions / Banks

164,417

0.28 %

Foreign Institutional Investors (FIIs)

22,515,103

38.70 %

NRI

164,324

0.28 %

Non Domestic Company

2,250,050

3.87 %

Bodies Corporate / Trusts

2,412,835

4.15 %

Individuals-shareholders holding nominal Share Capital up to Rs. 0.1 Million

3,743,912

6.44 %

Individuals-shareholders holding nominal Share Capital excess of Rs. 0.1 Million

1,014,804

1.74 %

Any Other - Clearing Members

101,514

0.17 %

Total

58,172,641

100.000 %

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing and Marketing of Extruded-Moulded, Assembled / Fabricated Plastic Products / Items, Micro Irrigation Systems, Polytube and Laterals, Injection Moulded Components, Plastic Products, PVC Sheets, PC Sheets, HDPE Pipes and Fittings (for sprinkler systems), PVC Pipes and Fabricated Fittings, Metal Filter and Filtration Equipments, Dies & Moulds and Tools Dehydrated Onions and Vegetables, Papuan Powder, Tissue Culture Plants, Water Soluble Fertilisers and Solar Water Heating Systems.

 

 

Products :

Item Code No. (ITC Code)

842481.00

Product Description

Micro Irrigation Systems

 

 

Item Code No. (ITC Code)

392061

Product Description

Plastic Sheets

 

 

Item Code No. (ITC Code)

391723.09

Product Description

Plastic Extruded & Moulded Products such as Pipes, Fittings, Profiles, etc.

 

 

ITC Code

--

Product Description

MIS & Other Agricultural Related Goods

 

 

Exports to :

Srilanka, Israel, South Africa, Australia, UK, Bangladesh, Argentina, Italy, UAE

 

 

Imports from :

Rohm & Hass, Germany, Singapore, USA, The Netherlands, Japan, Indonesia, South Africa, Saudi Arabia

 

 

Terms :

 

Selling :

L/C, Cash, Open Account Credit, Credit (30/60/90 days)

 

 

Purchasing :

L/C, Cash, Open Account Credit, Credit (30/60/90 days)

 

PRODUCTION STATUS

 

Particulars

Unit

Installed Capacity

Operational Capacity

Actual Production

Extruded Moulded Assembled/Micro Irrigation Systems

Polytube and Laterals (**)

MT

11400

7200

4649

Injection Moulded Components

MT

2200

1800

1284

PVC Pipes & Fittings

MT

35,600

33400

30955

HDPE Pipe & Fittings

MT

14850

10200

8275

Plastic Products

MT

--

 

--

PVC Sheets

MT

21780

17400

14267

PC Sheets [$]

MT

4550

4100

2321

Dehydrated Onions & Vegetables

MT

9500

8500

6271

Fruit Puree & Concentrates

MT

28900

18000

12016

Refined Papain Powder

MT

25

 

--

Tissue Culture Plants

MT

7500000

7500000

5994190

Solar Water Heating Systems

MT

1200000

600000

395556

 

GENERAL INFORMATION

 

Customers :

Wholesalers, Retailers, OEM’s and End Users

 

 

No. of Employees :

2870

 

 

Bankers :

v      Bank of Baroda, Jalgaon.

Comm. Branch, Advance Division, Bank Street, Mumbai-400023

v      Centurion Bank of Punjab, Mumbai

v      Canara Bank

v      Development Credit Bank Limited, Mumbai

v      Dena Bank, Mumbai

v      Export Import Bank of India, Mumbai

v      ICICI Bank Limited, Mumbai

v      State Bank of India, Mumbai

v      State Bank of Indora, Mumbai

v      The United Western Bank Limited, Jalgaon

v      Union Bank of India, Mumbai

IFB Branch, Nariman Point, back Vidhan. Bhavan, Mumbai

v      Bank of Baroda

Corporate Finance Branch, 1st Floor, Walchand, Hirachand Marg, Ballard Pier Mumbai –400001

v      Canara Bank, Visanji Nagar, Jalgaon-425001

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

Dalal & Shah

Chartered Accountants

49-55, East & West Insurance Building, Bombay Samachar Marg, Fort, Mumbai - 400 023.

Tel. No.:

91-22-22660115 / 22662110

Fax No.:

91-22-22661503

Email:

Dalal_shah@rediffmail.com

 

 

Associates :

v      JISL Overseas Limited, Mauritius

v      Excel Manufacturing Inc., USA

v      Excel Plastic Distribution Limited, UK

v      Jain Extrusion & Moulding Private Limited

v      Pixes Point Private Limited

v      Jain Vanguard Polybutelyne Limited

v      Labh Subh Securities International Limited

v      Atlaz Technology Private Limited

v      Jain Brothers Industries Private Limited

v      JAF Products Private Limited

v      Jain Sons Investment Corporation

v      Drip & Pipe Suppliers

v      Jain Computer & Allied Services

v      Jain Charities

 

 

Subsidiaries :

v      JISL Overseas Private Limited, Mauritius

v      Gowtham Granites Limited, Khammam, Andhra Pradesh, India

v      Jain (Europe) Limited

(Wholly Owned Subsidiary Company)

Excel Plastic Distribution Limited,

23-25 King Street, Twickenham, TWI 3 SD,

United Kingdom

Tel: 44-208-8928888

Fax : 44-208-8928988

Email: excel@exceluk.co.uk

Marketing Arm of Jain irrigation Systems limited, India (Parent) in Europe

v      Jain (America) Inc.

(Wholly Owned Subsidiary Company)

1819 Walcutt Road, Suite-I

Columbus, Ohio 43228

Tel : 1-614-8509400

Fax : 1-614-8508600

Toll Free Tel: 1-888-4737539

Toll Free Fax : 1-888-2891403

Email : sales@forexcel.com

Marketing Arm of Jain Irrigation Systems limited India (Parent) in USA

 

 

GLOBAL ALLIANCES:

v      Amcor Limited, Israel (Solar Systems)

v      Azrom Metal Industries, Israel (Green Houses)

v      Chapin Watermatics Inc, U.S.A (Sub-soil Tubing)

v      Plexite Limited (Glynwed Group), U.K. (Wood-alike Plastics)

v      Vanguard Plastics Inc, U.S.A. (Polybutylene Plumbing Systems)

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

73,500,000

Equity Shares

Rs.10/- each

Rs. 735.000

Millions

18,630,000

Preference Shares

Rs.100/- each

Rs. 1863.000

Millions

4,500,000

Unclassified Shares

Rs.10/- each

Rs. 45.000 millions

 

Total

 

Rs.2643.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

Not Available

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2006

31.03.2005

31.03.2004

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

1494.424

1518.851

1465.360

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

2043.488

1765.611

1264.611

4] (Accumulated Losses)

0.000

0.000

0.000
NETWORTH

3537.912

3284.462

2729.971

LOAN FUNDS

 

 

 

1] Secured Loans

4017.001

2994.832

2707.403

2] Unsecured Loans

2728.280

371.679

443.147
TOTAL BORROWING

6745.281

3366.511

3150.550

DEFERRED TAX LIABILITIES

0.000

0.000

0.000
 

 

 

 
TOTAL

10283.193

6650.973

5880.521
 

 

 

 
APPLICATION OF FUNDS

 

 

 
 

 

 

 
FIXED ASSETS [Net Block]

3944.808

3117.388

2847.954
Capital work-in-progress

417.971

100.227

96.707
Intangible Assets

0.000

0.000

122.652
 

 

 

 
INVESTMENT

826.010

82.054

150.058
DEFERREX TAX ASSETS

730.340

743.178

741.464
 

 

 

 
CURRENT ASSETS, LOANS & ADVANCES

 

 

 
 
Inventories
1837.332
1543.733

1082.713
 
Sundry Debtors
2830.571
2230.425

1620.059
 
Cash & Bank Balances
2261.942
112.780

137.890
 
Other Current Assets
57.170
32.912

34.933
 
Loans & Advances
757.797
727.155

734.195
Total Current Assets
7744.812
4647.005

3609.790
Less : CURRENT LIABILITIES & PROVISIONS
 
 

 
 
Current Liabilities
3078.945
2001.932

1657.235
 
Provisions
301.803
36.947

30.869
Total Current Liabilities
3380.748
2038.879

1688.104
Net Current Assets
4364.064
2608.126

1921.686
 

 

 

 
MISCELLANEOUS EXPENSES

0.000

0.000

0.000
 

 

 

 
TOTAL

10283.193

6650.973

5880.521                                                

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2006

31.03.2005

31.03.2004
Sales Turnover [including other income]

8902.231

66266.335

4061.816
 

 

 

 
Profit/(Loss) Before Tax

691.539

322.245

148.522
Provision for Taxation

19.922

(1.702)

(43.788)
Profit/(Loss) After Tax

671.617

323.947

192.310
 

 

 

 
Export Value

2690.775

2103.681

1283.754
 

 

 

 
Import Value

2123.336

998.145

502.836
 

 

 

 
Total Expenditure

7349.483

5276.188

3337.424

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2006

30.09.2006

30.12.2006

 Type

 1st Quarter

2nd Quarter

 3rd Quarter

 Sales Turnover

 2299.500

 2263.400

 3023.100

 Other Income

 13.100

 24.500

 108.300

 Total Income

 2312.600

 2287.900

 3131.400

 Total Expenditure

 1933.400

 1889.900

 2555.000

 Operating Profit

 379.200

 398.000

 576.400

 Interest

 120.200

 148.000

 167.600

 Gross Profit

 259.000

 250.000

 408.800

 Depreciation

 71.600

 74.900

 77.800

 Tax

 11.700

 12.500

 18.000

 Reported PAT

 175.700

 162.600

 313.000

 

200606 Quarter 1 –

 

The above results have been taken on record at a meeting by the Audit Committee and the Board of Directors of the Company on 31.07.2006 2.The Company has utilized part of the Zero Coupon Foreign Currency Convertible Bonds (ZCCB's) proceeds towards capital expenditure Programme, investment in overseas subsidiaries, various overseas acquisitions and repayment of foreign currency loans. Pending full utilization, the balance fund as at 30.06.2006 have been kept in fixed deposits with the bank. 3. 1st half results of the Company do not reflect annual trend due to seasonality factor. Company historically has achieved 35% revenue in H1, 65% revenue in H2. 4. The figures have been regrouped, rearranged, reclassified or reworked as necessary to confirm to the current year accounting treatment. 5. Increase in capital employed under 'Hi-tech Agri input & industrial products' includes capacity expansion plan under implementation from ZCCB Issue made on 29-Mar-2006, the full impact of which will come in busy season. 6. The Auditors of the Company have carried out the 'Limited Beview' of the above financial results. 7. The Company has received and disposed off 34 investor complaints during the quarter ended 30-June-2006. There were no investor complaints pending at the beginning or at the end of the quarter.

 

200609 Quarter 2 –

 

1. The above results have been taken on record at a meeting by the Audit Committee and the Board of Directors of the Company on 29-October-2006 2.1st half results of the Company do not reflect annual trend due to seasonality factor. Company historically has achieved 35% revenue in H1 and balance 65% revenue in H2. 3. The figures have been regrouped, rearranged, re classified or reworked as necessary to conform to the current year accounting treatment. 4. The Company has utilized part of the Zero Coupon Foreign Currency Convertible Bonds (ZCCBs) proceeds towards capital expenditure plan, investment in overseas subsidiaries, various overseas acquisitions and repayment of foreign currency loans. Pending fun I utilization the balance fund as at 30-September-2006 have been kept in fixed deposits with the bank. 5. Increase in capital employed under Hi-tech Agri input & industrial products' includes capacity expansion plan under implementation from ZCCB Issue made on 29.03.2006, the full impact of which will come in next financial year 6. Deferred Tax Provision will be decided at the end of the financial year. 7. The Board of Company and Orient Vegetexpo Limited, Dindori Nasik have approved amalgamation w.e.f.1-April-2006 as appointed date, The Swap ratio has been worked as 7 share of Company will be issued against 53 shares of Orient The company is taking steps to approach BIFR for approval of above amalgamation. 8. The Board of Company and Eudssko Agro Limited, Khed, Pune have approved amalgamation w.e.f.1-April1-2006 as appointed date. The Swap ratio has been worked as 2 shares of Company will be issued against 49 shares of Eurissko. The company is taking steps to approach HC for approval of above amalgamation. 9. The company has received and disposed off 40 investor complaints during the quarter ended 30-September-2006. There were no investor complaints pending at the beginning or at the end of the quarter. 10. The Auditors of the Company have carried out the 'Limited Review' of the above financial results.

 

200612 Quarter 3

 

Notes

 

EPS is Basic Status of Investor Complaints for the quarter ended December 31, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 37 Complaints disposed off during the quarter 37 Complaints unresolved at the end of the quarter Nil 1. The above results have been taken on record at a meeting by the Audit Committee and the Board of Directors of the Company on January 19, 2007. 2. Nine Months financial results of the Company do not reflect annual trend due to seasonality factor. Historically Company has achieved 60% of revenue during this period and balance 40% revenue in 4th quarter. 3. The figures have been regrouped, rearranged, reclassified or reworked as necessary to conform to the current year accounting treatment. 4. The Company has utilized part of the Zero Coupon Foreign Currency Convertible Bonds (ZCCBs) proceeds towards capital expenditure plan, investment in overseas subsidiaries, various overseas acquisitions and repayment of foreign currency loans. Pending full utilization, the balance fund as at December 31, 2006 have been kept in fixed deposits with the bank. 5. Deferred Tax Provision will be decided at the end of the financial year. 6. The Auditors of the Company have carried out the 'Limited Review' of the above financial results 7. Applications have been filed by the Company and Eurissko Agro Limited Chakan Pune in High Court of Judicature at Bombay for sanctioning the scheme of arrangement between the two companies w.e.f. April 01, 2006. The Court convened meetings are to be held on January 25, 2007 and then petition for confirmation of Scheme of Arrangement shall be filed.

 
KEY RATIOS

 

PARTICULARS

 

31.03.2006

31.03.2005

31.03.2004

Debt Equity Ratio

1.48

1.08

1.22

Long Term Debt Equity Ratio

0.95

0.61

0.52

Current Ratio

1.46

1.40

1.19

TURNOVER RATIOS

 

 

 

Fixed Assets

1.92

1.48

1.05

Inventory

6.44

5.48

4.82

Debtors

4.29

3.74

3.27

Interest Cover Ratio

2.23

1.69

1.30

Operating Profit Margin (%)

12.46

14.00

17.69

Profit Before Interest and Tax Margin (%)

10.05

10.94

13.36

Cash Profit Margin (%)

7.79

7.55

8.32

Adjusted Net Profit Margin (%)

5.38

4.50

3.98

Return on Capital Employed (%)

12.96

12.58

10.94

Return on Net Worth (%)

18.64

15.68

10.66

 

STOCK PRICES

 

Face Value

Rs.10.00/-

High

Rs.434.00/-

Low

Rs.423.00/-

 

 

LOCAL AGENCY FURTHER INFORMATION

 

The company’s fixed assets of important value include Goodwill, Trademark & Development, Freehold Land, Leasehold Land, Buildings and Godowns, Green/Poly/ Shed Houses, Plant & Machinery, Office Equipments, Electrical Installations, Research & Development, Computer & Accessories, Furniture, Fixtures & Office Equipments, Vehicles and Live Stock.

 

HISTORY

 

Incorporated in Dec.'86, Jain Irrigation Systems was promoted by B H Jain. The company manufactures and supplies micro irrigation systems, which encompass irrigation through strip tubing, emitters, jets and mini-sprinklers. It also manufactures PVC foam / rigid sheets and polycarbonate sheets. JISL Overseas Limited is a subsidiary of the company.

 
The company's Biotech Tissue Culture is growing constantly and has created a brand image for BTC products, namely Banana Plants. Since the location of the company in banana belt is an added advantage it continues to invest in up gradation of its laboratories and also the expansion of its facilities. 


The company has a technical collaboration with RIS, Italy, to manufacture drip irrigation systems; and with Chapin Watermatios, US, for multi-chambered drip irrigation hoses with the brand name Turbulent Twinwall. A MoU has been signed with GE Plastics India (GEPI) to manufacture polycarbonate sheets. 


The drip irrigation method has a high efficiency of water usage (95%), compared to conventional methods (50%) and sprinkler irrigation systems (70%). The company has entered into a hitherto untapped area of large-scale commercial farming by implementing MIS in corporate agricultural projects. A new division for landscape irrigation for a golf course installation has been successfully completed. 

 

Growth in exports was mainly due to the addition of polycarbonate sheets. The company has bagged a prestigious order from GE Appliances, US, for supply of custom-moulded plastic parts. It has opened offices in the US for distribution of plastic sheets and irrigation components in North and South America. Plant tissue culture, greenhouses, seedling nurseries and liquid fertilizers are some of the green field projects being implemented by the company. It has also commenced manufacture of solar water heaters. 

 
The agri-irrigation products, plastic and PE piping system, dehydrated products divisions has received ISO 9001 certification. The merger between Jain processed foods Private Limited with the company was approved by the High Court. During 2002-03 the company has been selected along with six vendors who has been awarded GoAP APMI project. The Rs.12000 Millions project is to be implemented in 2 phases over a period of 2 years. Out of the seven vendors, JIS Limited has been allocated highest area of 36000 hectares in the Phase I of 135000 hectares. This project has been stabilized and is expected to continue at improved pace in the current year. 


During May 2004 the company has decided to merge Gowtham Granites Private Limited (GGPL) with itself under the provisions of Sick Industrial Companies Act 1985 with effect from 1st January 2004. Since GGPL is a wholly owned subsidiary of the company the shares issued by GGPL to the company shall stand cancelled as a result of merger hence there is no share exchange ratio or impact of shareholding of the company post merger. 

 
The company decided to merge Terra Agro Technologies Limited (TATL), Coimbatore with itself with effect from 1st April 2005. According to the scheme of merger the company will issue 1 equity share to the shareholders of TATL for every 48 equity shares held by them in TATL. This scheme of merger is subject to necessary approvals. 

 
During 2004-05 the company has increased the installed capacity of Polytube and Laterals, Injection Moulded Components, HDPE Pipes and fittings, PVC Sheets, Dehydrated Onions & Vegetables, Fruit Puree & Concentrate and Tissue Culture Plants by 600 MT, 200 MT, 6174 MT, 9880 MT, 800 MT, 9100 MT, 2,00,0000 NOS. respectively. With this expansion the total installed capacity of Polytube and Laterals, Injection Moulded Components, HDPE Pipes and fittings, PVC Sheets, Dehydrated Onions & Vegetables, Fruit Puree & Concentrate and Tissue Culture Plants has increased to 11400 MT, 2200 MT, 14850 MT, 21780 MT, 3500 MT, 28900 MT, 7500000 NOS. respectively. Further the company has installed new capacities of Slabs/Tiles and Monuments with a capacity of 45000 Sq. Mtr and 15000 C. Ft. respectively. 
 
JISL has acquired the mango processing business from Parle Bisleri Private Limited during February 2006 for the total consideration of Rs.140.000 Millions as an on-going business. Through this acquisition,the comapny has acquired two mango processing facilities in South India and also JISL has built capacity of about 58000-60000 tones of mango processing plants.

 

Operations:

 

The Corporate sales have grown by 42% over the earlier year to reach a level of Rs. 8589.0 Millions whereas, domestic sales have grown by 53% over the earlier year at Rs.568.8 Millions. The export sales have grown by 25% to reach a level of Rs.2867.2 Millions in Financial Year 2005-06. The other income has gone up by two & half times from Rs. 5.2 Millions last year to Rs. 76.4 Millions in FY 2005-06.

 

The operating profit has grown by 57% reflecting gains of increased scale of operations at Rs. 552.7 Millions. The raw material prices were volatile throughout the year as polymers are derivatives of oil. However, with optimum buying decisions, better product mix and, appropriate inventory management the Company has been able to bring down the overall raw material costs by .5% as compared to last year.

 

The manufacturing expenses have gone up by a third of a percentage mainly due to increase in power charges.

 

The staff costs as a percentage of revenue have shown 0.5% decrease, even though there is substantial increase in revenue, reflecting better productivity and lower fixed cost.

 

The selling distribution & administrative costs have remained at same levels as last year. Though the interest & finance charges have gone up by about Rs. 27.0 Millions, as a percentage of sales income they have come down substantially from 7.3% to 5.5% in the current year.

 

During the year under review the Company has written off / made provisions against non recoverable claims, advances & value of unserviceable, slow moving inventory worth Rs. 79.5 Millions, Company continues to pursue recovery efforts for claims and advances.

 

Out of profit available for appropriation an amount of Rs. 25.0 Millions has been used for creating CRR on redemption of preference shares while Rs. 50.4 Millions has been transferred to General Reserve, and balance (remaining after Preference & Equity Dividend) of Rs. 76.2 Millions is carried to balance sheet.

 

Dividend:

 

Dividend [both accumulated & current] are payable on 4% redeemable preference shares and are provided for in annexed accounts. The same shall be paid after declaration at 9th Annual General Meeting. The total provision made on this account is Rs. 39.5 Millions.

 

The Board has recommended 8% Dividend on Equity Shares of the Company. The same shall be paid after declaration at 9th Annual General Meeting.

 

The total provision made on this account is Rs. 9.7 Millions.

 

Amalgamation of Terra Agro Technologies limited:

 

The scheme of amalgamation effective st April 2005 was sanctioned by the honorable High Courts at Bombay and Madras on 02.04.2006 and 26th June 2006 respectively. The accounts for the FY 2005-06 reflect the amalgamated numbers after giving effect to the Scheme sanctioned. The Company had in consultation with Stock Exchange at Mumbai fixed 7th July 2006 as the record date for exchange of shares of erstwhile Terra Agro Technologies Limited with the Company’s equity shares and is in process of sending the Share Certificates to the eligible shareholders. The listing and trading permissions will be obtained soon thereafter.

 

Awards and recognitions:

 

The awards and recognitions received during the year are as under:

 

Name of Award / Honour

Sponsored

By

Instituted

By

Nature of Award Given By Citation

Given By

Citation

“EIMA Technical Innovation

Award”

 

UNACOMA

EIMA

Certificate & Trophy

Massimo Goldani,

Chairman, UNACOMA

Technical Innovation Award 2005

(Autoflush Filter in MIS)

“APEDA” Export Award

MOC&I,

GOI

APEDA

Certificate & Bronze

Trophy

Kamal Nath, Minister of

Commerce, GoI.

Significant Contributions in

Quality & Exports of Agriculture &

Processed Food Products

 

MANAGEMENT DISCUSSION AND ANALYSIS:

 

Agriculture, which was mainstay of Indian economy for many decades, has been overtaken by the manufacturing and services sector in recent times. Agri GDP was declining at 2. % annually but is expected to grow in the lowest single digits. This tardy performance of the agri sector in India can be attributed partly to counter productive policies of the government and mainly to continued dependence on rainwater. While India accounts for 6% of world population, 30% of global cattle population, however, with only 2.4% of land area but 4% of global water resources, India has to manage itself with these major resources. This is indeed a very challenging environment. The low purchasing power of Indian farmer and lack of opportunities in rural area in non farm activities are daunting challenges for policy makers and for all other stake holders involved in agri value chain. Recently, government has come out with some good policies to address these issues. (Refer BOARD'S REPORT para 7) However, lot more needs to be done urgently to address suffering of all farmers. The Company is committed to play its role in this endeavor by helping farmer to improve his productivity with cost effective high-tech inputs and by also providing outlet for his produce.

 

With economy poised to grow over 7.5% this year too the overall scenario is quite positive for business development. The Company’s overall business prospects are significantly integrated with the agricultural economy in the overall macro economy of the Country. Consequently, the Company’s business performance is subject to seasonality in the agricultural sector, success or failure of the monsoon during the year and most importantly also dependant on Governmental policies - both Central and State level. However, Company has also built a business portfolio of industrial products in India and abroad to de risk its dependence on agriculture sector. Its may also be noted that Company mostly operates within horticulture segment which has been doing very well.

 

Overview of Business:

 

The Company is one of India’s leading agri-business companies operating in diverse but integrated segments of the agro-business supply chain. The Company is one of India’s largest manufacturers of irrigation systems, polyethylene pipes and plastic sheets.

 

The Company’s product range includes: Micro Irrigation Systems (“MIS”) consisting of drip and sprinkler irrigation systems; Piping Systems consisting of PVC pipe and polyethylene (“PE”) pipe products: Plastic Sheets consisting of PVC sheet and polycarbonate (“PC”) sheet products; Agro-Processed Products consisting of dehydrated onion and vegetable products and processed fruit purees and concentrates; and other products such as agricultural tissue culture and solar water heater and photo-voltaic systems.

 

Key products:

The following table outlines the principal business segments and products as of the date of this report:

 

Jain irrigation Systems Limited

 

High-Tech Agri Products

·         Drip Irrigation

·         Sprinkler Irrigation

 

Plastic Piping Products

·         PVC Pipes & fittings

·         PE Pipes & fittings

 

Agri Processed Products

·         Dehydrated onions &vegetables

·         Processed fruit purees, concentrates & frozen fruits

 

Plastic Sheet Products

·         PVC Sheets

·         PC Sheets

 

Other Products and Services

·         Tissue Culture, hybrid& grafted plants

·         Solar water heaters & photovoltaic appliances

·         Education & training

·         Turnkey & consultancy services

 

 

A brief synopsis of their products and their application is provided in the table below:

 

Product

Product Use and Applications

Brand Name

Drip Irrigation Systems

Farm Irrigation & Landscape

Jain Drip

Sprinkler Irrigation Systems

Farm Irrigation & Landscape

Jain Sprinkler

PVC Pipes

Water Supply, Farm Irrigation, Plumbing, Cable ducting

Jain Pipe

 

High Density Polyethylene ("PE") Pipes

Water, Sewerage, Effluents, Cable ducting, Gas distribution

Jain PE Pipe

 

PVC Sheets – Free Foam

– Integral Foam

– Rigid

 

 

 

Poly Carbonate (PC) Sheets

–         PC Compact

– PC Corrugated

 

 

Trim boards, display boards, sign boards, banners

Marine industry, advertising, signs boards, interior designs

Industrial applications, partitions, interior designs

 

Building, construction, transport, advertising

Greenhouses, stadium and industrial roofing

Ex-cel

 

 

 

 

 

 

Ex-cel

 

Dehydrated Onions

 

Processed food, soups, recipes, salads, retail

 

Farm Fresh

 

Fruit Puree and Concentrates

 

Juices, baby foods, confectionary

 

Farm Fresh

 

Tissue Culture Plants

 

Agriculture plantation

 

Jain Tissue Culture

 

Solar Water Heating & Solar Photo-voltaic

Domestic and industrial uses, Hospitals, Dairies

Jain Sun Watt &

Jain Jyot

 

 

Jain Irrigation has announced a very encouraging 49% increase in revenues

 

Jain irrigation has announced a very encouraging 49% increase in revenues from Rs. 1540.3 Million to Rs. 2299.5 Million for Q1 FY 06-07. Whereas pbdit has increased by 50% from Rs. 278.3 Million to Rs. 418.4 Million, the net profit has increased by more than 64% from Rs.107.1 Million for Q1 04-05 to Rs.175.7 Million in Q1 FY 06-07. Exports have contributed Rs.790 Million to overall revenue for the quarter. The company exports micro irrigation components, PVC sheets, dehydrated vegetables, processed fruits etc to developed countries in the western world.

In the micro / sprinkler systems division besides the sales in historically important Maharashtra, projects like Andhra Pradesh micro irrigation project and Gujarat green revolution co. Limited Have helped company surpass last year’s historic growth levels. Acquisition of Chapin watermatics, USA, a pioneer in drip irrigation in the world and strategic stake in eurodrip S.A.., greece, a drip irrigation company with 5 plants worldwide; along with capacity expansion under way, will further enhance growth in this division during the current year.

Pipe sales will maintain the growth momentum due to aggressive government programme for drinking water supply to all villages and additional irrigation to 10 million hectares.

Exports of pvc sheets have grown 50% in line with corporate numbers. Further, company had last year added significant new customers for building product applications. Last year’s investment in nucedar will also help the company to take lead over competition through newer applications in building industry in future years.

The acquisitions in the food processing sector like parle bisleri’s mango division, lmp gujarat agro exports etc. Have added capacity at low cost in the two food related businesses of the company which have come on stream fully in the current year. The FY 06-07 is going to be a year of significant growth for food division of the company.

 

Jain Irrigation Announces Acquisition of Chapin Watermatics Inc., USA

 

Jain Irrigation Systems Limited has announced the acquisition of Chapin Watermatics, Inc, New York, USA through its second generation wholly owned subsidiary, Jain (Americas) Inc, Ohio, USA. Jain Irrigation has acquired 100% shareholding control of Chapin Watermatics at approx. $ 6 million in cash and debt with deferred payment terms for part consideration. Company will use FCCB funds for the acquisition.

Chapin Watermatics Inc, USA is a pioneer and leading manufacturer of drip tape and is known as complete source for field crop, nursery and green house drip irrigation systems. Chapin was created by its inventor Mr. Richard D. Chapin who has been credited with several patents in this field. Chapin has also successfully pioneered and initiated design and development of gravity based drip kits intended to help the below poverty line families in the developing countries to feed them. Chapin is currently selling its products in North and South America, Europe, other Middle Eastern and African Countries. Company has averaged over $ 9 million turnover for past several years. It has a production capacity to take sales up to $ 15 million.

Jain Irrigation is the only company in the world that produces under one roof complete drip irrigation system including PVC & PE pipes, PVC & PE fittings, Polytubes, Emitting pipes and fittings, emitters, spray heads and jets, filtration and fertigation equipment, and green houses. It also undertakes projects on turnkey basis for transformation of wasteland through watershed planning and development. Its multi- product and diversified skill profile enables it bid for global agricultural projects getting underway in developing countries.

Marketing subsidiaries of Jain Irrigation in USA, Europe and Africa and their warehousing facilities will provide additional marketing and logistic support to Chapin Watermatics.

The acquisition will significantly enhance Jain Irrigation’s ability to participate in turnkey projects in developing world markets while providing a strategic brand fit in matured markets of USA and Europe. Another important outcome will be Jain Irrigation’s ability to be the only company in the world making complete product range suitable for all types of crops in various geographies for small as well as large farm holdings across the world. Irrigation markets worldwide are witnessing huge growth due to ever growing problem of water scarcity.

Mr. Anil Jain, Managing Director of Jain Irrigation, said after signing the deal in USA, “The focused marketing efforts that Jain brings to the deal will complement the excellent products of Chapin and the acquisition will catapult Jain Irrigation and Chapin Watermatics to the forefront in growing global markets for Irrigation equipments.”

 

Jain Irrigation Systems Limited is a diversified company with more than 3000 employees and sales in excess of $ 200 million with product portfolio encompassing Irrigation Products, Piping Systems, Plastic Sheets, Dehydrated foods, Fruit Purees, Pulp and Juices and Solar Energy based Thermal and Photovoltaic Systems in India and other world markets.

 
Business Performance 

 
 High Tech Agri Input Products 

 
The division sales have grown by about 31% over previous year whereas operating profit (EBDIT) has increased by more than 56% over previous year, as a result of better absorption of fixed overheads due to economies of large scale operations. 

 
The division has shown a 21% growth in capital employed. 

 
Within the division various segments have shown trends as follows: 

 
Agri Irrigation Products, 

 
The Micro Sprinkler Irrigation products sales registered a 33% sales growth and 38% quantity growth The agri irrigation products contributed 20% of revenue, 30% of contribution margins and 26% of EBIDTA to the Company's corporate kitty showing a dominant position in overall businesses of the Company. Domestic sales contributed 92% to segment sales and the exports contributed 8%. The ability to pass on higher polymer prices has some lead time particularly in turnkey project business.  
 
One inline extrusion line of 600 Tons capacity was added during the year, while Injection Molding capacity for 200 Tons was added during the year. The segment introduced 20 mm Turbo Line and various moulded components like, Turbo Seal emitter, Turbo Seal PC emitter, Micro Turbo hold stake, Turbo Fogger, bubble adjustable flow plus Poly Barb fitting, new PVC fittings, Stake inlet for micro sprinkler etc. In the sprinkler segment J12 Sprinkler, Nozzle, OC valve opener, OC hydrate, OC internal valve coupler were introduced and Twin Super Flow Disc filter and filt O clean filter, back wash controller were introduced during the year by the segment. 

 
PVC & PE Piping Products 

 
The piping products contributed 33% of total sales, 19% of contribution margin and 17% of EBDITA to corporate entity. The domestic sales were 95% of the segment sales while exports contributed 5% to the segment sales. Lead free eco-friendly Pipes were developed for export markets. 

 
In this segment PVC Pipes grew by 25% in volume and contributing a 36% growth in value terms as compared to previous year. The ability to pass on higher raw material costs is quite immediate in the segment. 
 
PE Pipes grew by 128% in quantitative terms, and 150% growth in value terms as compared to previous year. Higher margins in specialized product has contributed to higher EBIDTA. This was the fastest growing segment of business during FY 2004-05. The PE Pipes segment revenue comprised of 95% domestic and 5% export sales. 

 
 6174 Tons of Extrusion line capacity was added during the year in PE Pipe segment

 
 Tissue Culture 

 
 The Tissue Culture business faces increasing demand from farming community. This small business segment has shown 49% growth backed by 47% volume growth and a stable price realisation on increased volume. 

 
The capacity expansion of 2 million Tissue Culture plants was put on stream during the year under review. 
 
 Subject is engaged in manufacturing and marketing of Extruded-Moulded, Assembled / Fabricated Plastic Products / Items, Micro Irrigation Systems, Polytube and Laterals, Injection Moulded Components, Plastic Products, PVC Sheets, PC Sheets, HDPE Pipes and Fittings (for sprinkler systems), PVC Pipes and Fabricated Fittings, Metal Filter and Filtration Equipments, Dies & Moulds and Tools Dehydrated Onions and Vegetables, Papuan Powder, Tissue Culture Plants, Water Soluble Fertilisers and Solar Water Heating Systems.

 

Subject is also engaged in the business as manufacturers and suppliers of micro irrigation systems, which encompass irrigation through strip tubing, emitters, jets and mini sprinklers. It also manufactures PVC foam/rigid sheets and polycarbonate sheets.

 

The company’s Biotech Tissue Culture is growing constantly and had created a brand image for BTC products, namely Banana Plants. Since the location of the company in banana belt was an added advantage it continues to invest in up gradation of its laboratories and also the expansion of its facilities.

 

The company has a technical collaboration with RIS, Italy, to manufacture drip irrigation systems and with Chapin Watermatios, USA, for multi chambered drip irrigation hoses with the brand name “Turbulent Twinwall”. A MoU had been signed with GE Plastics India (GEPI) to manufacture polycarbonate sheets.

 

The drip irrigation method had a high efficiency of water usage (95%), compared to conventional methods (50%) and sprinkler irrigation systems (70%). The company has entered into a hitherto untapped area of large scale commercial farming by implementing MIS in corporate agricultural projects. A new division for landscape irrigation for a golf course installation had been successfully completed.

 

Growth in exports was mainly due to the addition of polycarbonate sheets. The company had bagged a prestigious order from GE Appliances, USA, for supply of custom moulded plastic parts. It had opened offices in the USA for distribution of plastic sheets and irrigation components in North and South America. Plant tissue culture, greenhouses, seeding nurseries and liquid fertilizers are some of the green field projects being implemented by the company. It has also commenced manufacture of solar water heaters.

 

The agri-irrigation products, plastic and PE piping system and dehydrated products divisions have received ISO 9001 certification. The merger between Jain Processed Foods Private Limited with the company was approved by the High Court. The company is among the six vendors who had been awarded GoAP APMI project. Out of the six vendors, the company has been allocated 250000 hectares in the 22 districts of the state. The Rs. 12000 millions projects is to be implemented in 2 phases over a period of 2 years.

 

The company’s brand names are Jain Pipe, Jain Drip, Jain PE Pipes, Jain Sprinklers, Jain Tissues-Culture, Jain Solar Excel, Farm Fresh and Sunwatt.

 

Divisional Performance

 

Hi-tech Agri Input Products:

 

Agri Irrigation Products:

 

The Micro & Sprinkler Irrigation System sales registered 78% growth in quantity and 3% increase in realisation resulting in 83% growth in the sales  volume. The growth in sales mainly comprised of 89% growth in domestic volume. The Company's strategy of delinking the subsidy receivable from Government has come off well and the growth in volume is ample proof of the same. The division continues its initiatives on introducing newer range  of high quality products in the Indian market.

 

PVC & PE Piping Division:

 

The PVC Pipes contributed just above 30% of the Company's revenue showing 29% growth in value. The division continues to achieve efficiency in utilization of plant capacity at optimum level.

 

In PE Pipes division, the tonnage went down by 24% reflecting 25% reduction in sales value. The major reason for the decline in tonnage was postponement of purchase decision on account of election process in majority of states. However, the trend has been reversed with installation of new Government at Center as well as in States like Karnataka, Andhra Pradesh and more recently in Maharashtra and in the current year the growth is again back to normal.

 

Industrial Products:

 

PVC & PC Sheet Products:

 

The PVC sheet business registered a 36% growth in value supported by 36% increase in tonnage reflecting full capacity utilization and good demand  and order book position for the product. The realisation were maintained at same level due to fluctuation on forex rates as this is a 100% EOU  product. The Company has implemented an expansion program in this business in the current year.

 

In the PC Sheet business the value was lower fay 14% due to 4% lower tonnage and 11 % lower realisation.

 

Onion Dehydration:

 

This business has registered almost 40% growth in value terms supported by 46% increase in tonnage although the realisation suffered by about 10%, due to appreciation of rupee throughout the year under report. The Company has added more capacity and customers in the business in the current year. The research efforts have also started paying off as as there is higher yield due to high solid content onion variety developed and distributed by the Company. Contract farming has helped the spread of this variety to farmers thereby increasing the availability of variety for processing.

 

Fruit Processing:

 

Revenue in this division has grown by 34% while there is 29% increase in tonnage processed. The demand for Company's Mango product continues to show an increasing trend which is likely to be maintained in the medium term. The Company has processed some additional tropical fruits although the contribution from the fruits other than Mango is not quite significant.

 

Other Manufacturing businesses:

 

While Tissue Culture business has shown 29% increase in quantity and revenue both, the Solar business has recovered all its lost quantities of last year by showing 53% increase in revenues backed by 66% increase in quantity.

 

Amalgamation of Gowtham Granites Private Limited:

 

The merger announced by the Board on 30.04.2004 has been approved by the Shareholders on 2.06.2004 and the Bank of India has recommended the Scheme of Rehabilitation of GGPL to AAIFR and the matter is slated for hearing at AAIFR bench on 6.01.2005. Thereafter, final order approving the merger is expected. The accounts for the year do not reflect these developments nor the amalgamated entity’s performance.

 

It is in trade terms with :-

 

·         Aarem Engineering, Mumbai, Maharashtra

·         Akshay Heater, Aurangabad, Maharashtra

·         Chainlink & Wireneting Industries

·         Chaitanya Steel Shape Private Limited, Jalgaon, Maharashtra

·         Chemical & Mineral Industries Private Limited

·         Chhajer Packaging & Plastics Private Limited, Jalgaon, Maharashtra

·         Chinmaya Engineering Private Limited, Jalgaon, Maharashtra

·         Columbia Petrochemicals, Raipur, Madhya Pradesh

·         Courser Paints & Chemicals, Jalgaon, Maharashtra

·         Doshi Heaters Private Limited, Surat, Gujarat

·         Flexible House Company, Mumbai, Maharashtra

·         Flexobraid, Mumbai, Maharashtra

·         Garnet Tools, Devas, Madhya Pradesh

·         Gira Industries, Jalgaon, Maharashtra

·         Global Packaging Industries, Nashik, Maharashtra

·         Image Engravers Die Makers, Nashik, Maharashtra

·         Impact Safety Glass Works Private Limited

·         Indo Plast Industries, New Delhi

·         Indu Packaging (Daman) Private Limited

·         Jade Rubber Products Private Limited, Mumbai, Maharashtra

·         Jainsons Industries, Jalandhar, Punjab

·         Jaisons Steel Industries, Jalandhar, Punjab

·         Kamal Dies & Engineering Works, Jalgaon, Maharashtra

·         Krishna Rubber, thane, Maharashtra

·         Krypton Polymers Private Limited, Nasik, Maharashtra

·         Lalitha Chem Industries Private Limited, Mumbai, Maharashtra

·         Lalitha Industries, Mumbai, Maharashtra

·         Mahavir Packaging, Jalgaon, Maharashtra

·         Mayur Hi-Tech Industries, Jalgaon, Maharashtra

·         Meters India Corporation, Mumbai, Maharashtra

·         Navrang Plastics Private Limited, Jalgaon, Maharashtra

·         New India Engineering Tools Corporation

·         Omega Plasto Compounds, Baroda, Gujarat

·         Patkar Extrusions Limited, Ankleshwar, Gujarat

·         Peeaar Enterprises, Mumbai, Maharashtra

·         Pelican Carbon Products, Mumbai, Maharashtra

·         Perfect Engineering Works

·         Plastichemix Industries, Baroda, Gujarat

·         Poly Mech Components Private Limited, Thane, Maharashtra

·         Polymermann (Asia) Private Limited, Nashik, Maharashtra

·         Prakash Rubber Industries

·         Prochem Industries, Mumbai, Maharashtra

·         Protochem Indu Private Limited, Mumbai, Maharashtra

·         Quartz India Godhra

·         R. D. Enterprise, Kolkata, West Bengal

·         R. D. Enterprises, Mumbai, Maharashtra

·         R. G. Metal & Company, Jalgaon, Maharashtra

·         Rane Elastomer Processor, Mumbai8, Maharashtra

·         Real Hyrofit & Company, Mumbai, Maharashtra

·         Rupa Engineering Works, Jalgaon, Maharashtra

·         S. Kantilal & Company, Surat, Gujarat

·         Sanil Enterprises, Pune, Maharashtra

·         Space Age Electro Tech India Private Limited

·         Spectrum Electroplaters

·         Statlec India Electricals, Jalgaon, Maharashtra

·         Super Tech Industries, Mumbai, Maharashtra

·         Tirupati Fabricators (Private) Limited, Jalgaon, Maharashtra

·         Vikram Industries, Jalgaon, Maharashtra

 

Amari Plastic Plc., Wednesburg, Black Country New Road, Wesdnesburg, West Midlands WS, UK

Tel No. 44-121-5673400

Fax No. 44-121-5673401

Email: bm@amariplastics.com

Contact person : Mr. Andy Lloyd

 

Worlee and Company, Grusontrasse, 22D, 2213, Hamburg, Germany

Tel : 40-733330

Fax : 40-73333157

Contact person: Camillo Willing

 

Eurodrop S.A. Irrigation Systems, 396, Messogion Ave, P.O. Box 74, GR-15341, Agia Paraskevi-Athens, Greece

Tel : 30-210-6001140

Fax : 30-210-6080464

Email: main@eurodrip.gr

Contact person : Soula Karkali

 

Brouge India Private Limited, 301, VIP Plaza of Link Road, Andheri West, Mumbai-400053

Tel : 91-22-26747700

Contact person : P.R. Singhvi

 

Cincinnati Extrusion Gmbh, Laxenburger Strasse, 246, 1230, Wien/Austria

Tel : 43/1/61006-0

Fax: 43/1/61006-8

Email: welcome@cet-austria.com

Contact Person : Werner Andrae

 

Valia Impex Private Limited, Ground Floor, Kailesh Tower, A Wing,  Behind STC Colony, Western Express Highway, Andheri (E), Mumbai –400069

Mr. Bhavesh Valia

Tel : 91-22-26824334

 

GE Industrial India Private Limited, 781, Solitaire Corporate Park, Andheri Ghatkopar Link Road, Chakala, Andheri East

Mumabi-400093, India

Sanjay Barman

Tel: 91-22-56972382

 

Hindustan Coka Cola Beverages Private Limited, N K Tower, Udyog Vihar , Phase S5, Gurgaon, Haryana-122106

Mr. Sameer Jain

Tel: 91-124-234804/8571

Fax: 91-124-2348143

Mob: 91-9849114401

 

Milstones:

 

1937: Founder Mr. Bhavarlal Jain was born in the Village in Jalgaon District

1963: Began Trading with Rs. 7000 as seed capital

1978: Traded in agricultural inputes and equipments for first 15 years

1978: Trade in agricultural inputs and equipments for first 15 years

1980: Started manufacturing PVC Pipes for water conveyance in Farms

1986: Current flagship company, jain irrigation systems Limited was incorporated

1987:  Pioneered concept production and application of Micro irrigation

1989: Company made its maiden public issue of Rs. 30 million

1991: Company raised Rs. 540 millions through a right issue of partly convertible debentures

1992: Opened new frontier with production of Plastic Sheets

1994: Company made an offering of 2696600 European Depository Receipts representing 2696600 shares at price of US $ 11.125 per EDR which raised US$ 30 million.

1996: Ventured through its onion dehydration and fruit processing plants under 100 % EOU

1997: Group companies were restructured to bring about greater synergy

1997: From 1997 onwards company suffered financial distress and went into Restructuring and debt    rationalization

1999: Lenders approved Debt Restructuring Package based on LPMG Viability Study, Involving Rs. 4890 million

2002: Inducted strategic investor Aqua international LP a US Based private Equity fund and raised Rs. 1830 million through preferential allotment of Equity shares

2002: Jain processed Food private Limited was merged JISL and in December 2002 company sold PVC sheet manufacturing facility under a sale lease back transaction to GE plastics India Limited

2004: During December 03 and January 2004 Company raised

 

 

About Company:

 

Mr. Bhavarlal Jain is the founder of Jain Group. He was born in a framer family in the tiny village in District Jalgaon. In 1963 he started trading in agricultural inputs like seeds, fertilizer and equipments like tractors and irrigation plastic pipes through a partnership firm called ‘Jain brothers’. In 1978 he ventured into manufacturing and acquired a sick unit and utilized the unit to make ultra-refined papain. A new company was set up with the name of Jain Plastics and Chemicals private Limited. Eventually, the company become the only producers of Ultra-Refined Papain in the world- catering to 15 % of global demand. Its productions process also gave company insights into microbiology. Papain indeed put the company on the national and international scene. In 1980, JPCL diversified its operations by manufacturing PVC pipes and established a range of plastic tumbling and pips products technology.

 

The initials years (1986-1994) : Jain Irrigation Systems Limited was incorporated in 1986 to focus on drip irrigation. 1987 they entered into a technology transfer and a collaboration agreement with james Hardie Irrigation Srl. Thet made their initial public offering in 1989 and raised Rs.30.000 Millions to established facilities to manufactures MIS.

 

In 1991 they raised Rs. 540 million through a rights issue of partly convertible debentures and used the proceeds to establish export oriented manufacturing units for injection moulded components and extruded sale in US and European markets for signage, displays, furniture and interior building applications under thir trademark “Ex-cel’. They also enhanced their range of plastic sheet products with the addition of compact and corrugated PC sheets.

 

In 1995, JPCl further diversified into dehydration of onions and vegetables and the productions of fruit purees, concentrates and pulp, through its subsidiary jain Processed Foods Private Limited with the establishment of ISO 9001 and HACCP certified food processing facilities. In 1995 JPCl also commenced a granite processing business through its subsidiary, Gowtham Granites Private Limited

 

Diversification (1994-1996): in 1994, they made an offering of 2696600 European Depository Receipts representing 2696600 shares at a price of US $ 11.125 per EDR which raised US $ 30 million. They used the proceeds of this offering to finance their diversification plans for tissue culture, water soluble fertilizers, green houses, solar water heating and photovoltaic systems as well as their range of plastic pipes by commencing the manufacture of PE pipes and fitting from HDPE for varied applications, including water and effluent conveyance, cable ducting and gas distribution.

 

In 1996 they merged with their related companies, Jain Kemira Fertilizers Limited, Jain Rahan Biotech Limited and Jain Plastics and Chemicals Limited JKFL and JRBL were engaged in the business of making water soluble liquid fertilizers and growing tissue culture platelets respectively while JPCL was engaged in plastics manufacture and food dehydration and processing.

 

Restructuring and debts regionalized (1996-2002) : From 1997 onwards they suffered financial distress, principally as a result of their over diversification and their under estimation of the long gestation period of their new fruit processing and dehydration facilities. As a result they were unable to meet certain of their debts service and repayments obligations and in 1998 they approached their lenders to implement a debt restructuring which was ultimately completed in March 2001. Under this restricting all the lenders agreed to postpone payments to correspond with their cash flows and reduce their cost of funds. During this time they ceased operating certain of their businesses which were not part of their core competency, such as their financial services, telecommunications, IT, multimedia, web design and granite business.

 

Post-restructuring (2002-onwards): In 2002, strategic financial investor Aqua International LP USA (“Aqua”) become one of their shareholders and they raised Rs. 1830 million through preferential allotment to Aqua of 23655834 equity shares. These funds were principally used to repay their long-term debt.

 

During fiscal 2002, they merged with the JPFPL and during fiscal 2004 they merged with GGPL. In December 2002, they sold their PVC sheet manufacturing facility under a sale and lease-back transaction to GE Plastics India Limited and used the Rs. 190 million proceeds to further reduce their debts.

 

Since 2004, they have engaged in contract farming, whereby they source the raw materials for their onion dehydration business by buying back onions at pre-determined price from over 1000 farmers, covering approximately 1200 hectares, who they provide with various agricultural inputs and services. 

 

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. 44.18

UK Pound

1

Rs. 86.36

Euro

1

Rs. 57.54

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--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

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

54

 

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

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

 

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions