MIRA
INFORM REPORT
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Report Date : |
28.06.2007 |
IDENTIFICATION DETAILS
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Name : |
C J GELATINE PRODUCTS LIMITED |
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Registered Office : |
Tokersi Jivraj Wadi, Acharya Donde Marg, Sewree (West), Mumbai-400015,
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
20.09.1980 |
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Com. Reg. No.: |
23206 |
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CIN No.: [Company
Identification No.] |
L24295MH1980PLC023206 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMC11053A |
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PAN No.: [Permanent
Account No.] |
AAACG2879G |
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Legal Form : |
Public Limited Liability Company. The Company’s shares are listed on
Stock Exchanges. |
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Line of Business : |
Manufacturers of the various grades of Gelatine. |
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 690000 |
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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 is a well-established and reputed company having satisfactory track.
Directors are reported as experienced and respectable businessmen. Trade
relations are reported as fair. Business is active. Payments are usually
correct and as per commitments. The company can be considered normal for business dealings at usual trade
terms and conditions. |
LOCATIONS
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Registered Office : |
Tokersi Jivraj Wadi, Acharya Donde Marg, Sewree (West), Mumbai-400015,
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Tel. No.: |
91-22-24163170/ 24131609/ 24135811/ 24131790 |
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Fax No.: |
91-22-24161368/ 24133193 |
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E-Mail : |
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Factory 1 : |
21, New Industrial Area, Mandideep-462084, Raisen, Madhya Pradesh |
DIRECTORS
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Name : |
Mr. Tirath Ram
Sahni |
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Designation : |
Executive Chairman
And Managing Director |
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Date of Birth/Age : |
76 years |
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Experience : |
He has vast
experience in the business, was running his proprietory, manufacturing and trading
business. He was the Joint Managing Director of the Company for more than
seven years till he became Chairman and Managing Director of this Company
after the demise of Shri S.P.Sahni. |
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Other Directorships : |
C. Jairam Private
Ltd. |
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Name : |
Mr. Ascharajlal
Sahni |
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Designation : |
Executive Joint
Managing Director |
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Date of Birth/Age : |
68 years |
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Experience : |
He is a Commerce
Graduate and has been engaged in running his own proprietory, manufacturing and
trading business for more than three decades. He has been the Joint Managing
Director of this Company since seven years. |
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Name : |
Mr. B M Kararia |
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Designation : |
Director |
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Name : |
Mr. Hemant S Sethi |
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Designation : |
Director |
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Name : |
Mr. Charanjit
Singh Sodhi |
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Designation : |
Director |
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Name : |
Mr. Sachiv Sahni |
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Designation : |
Executive Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Individuals |
2840283 |
59.009 |
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Bodies Corporate |
1908817 |
39.657 |
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FIIs |
-- |
-- |
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NRI/ OCBs |
63900 |
1.328 |
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Mutual Funds |
300 |
0.006 |
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Total |
4813300 |
100.000 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of the various grades of Gelatine. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Gelatine |
MT |
1000 |
1000 |
665.032 |
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Ossein |
MT |
1000 |
1800 |
-- |
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Dicalcium Phosphate |
MT |
1600 |
3600 |
2590.700 |
GENERAL INFORMATION
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Bankers : |
State Bank of |
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Facilities : |
Unsecured Loans (As
on 31.03.2006) : (Rs.
In millions)
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Trivedi & Reshamwala Associates Chartered Accountants |
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Associates/Subsidiaries : |
C Jairam Private Limited S P Sahni Trust |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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7000000 |
Equity Shares |
Rs.10/- each |
Rs.70.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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4813300 |
Equity Shares |
Rs.10/- each |
Rs.48.133
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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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 |
48.133 |
48.133 |
48.100 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
125.775 |
123.762 |
122.700 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
173.908 |
171.895 |
170.800 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
13.000 |
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2] Unsecured Loans |
5.636 |
5.818 |
5.900 |
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TOTAL BORROWING |
5.636 |
5.818 |
18.900 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
179.544 |
177.713 |
189.700 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
149.824 |
155.122 |
158.200 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
62.312
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40.062 |
35.300 |
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Sundry Debtors |
22.231
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16.504 |
16.600 |
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Cash & Bank Balances |
1.617
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2.788 |
3.400 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
10.334
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9.370 |
7.300 |
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Total
Current Assets |
96.494
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68.724 |
62.600 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
66.774
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46.133 |
31.000 |
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Provisions |
0.000
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0.000 |
0.100 |
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Total
Current Liabilities |
66.774
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46.133 |
31.100 |
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Net Current Assets |
29.720
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22.591 |
31.500 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
179.544 |
177.713 |
189.700 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
167.393 |
123.391 |
118.200 |
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Other Income |
18.165 |
10.654 |
(7.800) |
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Total Income |
185.558 |
134.046 |
110.400 |
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Profit/(Loss) Before Tax |
12.372 |
7.449 |
5.100 |
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Provision for Taxation |
4.708 |
0.752 |
0.500 |
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Profit/(Loss) After Tax |
7.664 |
6.697 |
4.600 |
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Expenditures : |
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Manufacturing Expenses |
NA |
NA |
11.800 |
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Administrative Expenses |
66.308 |
56.238 |
9.300 |
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Raw Material Consumed |
85.683 |
53.582 |
38.000 |
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Miscellaneous Expenses |
NA |
NA |
1.200 |
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Salaries, Wages, Bonus, etc. |
NA |
NA |
9.900 |
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Interest |
0.759 |
0.754 |
1.600 |
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Power & Fuel |
NA |
NA |
19.300 |
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Depreciation & Amortization |
1.445 |
1.145 |
1.100 |
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Other Expenditure |
18.549 |
14.876 |
13.100 |
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Total Expenditure |
172.744 |
126.596 |
105.300 |
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SUMMARISED RESULTS
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PARTICULARS |
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31.03.2007 (Full year) |
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Sales Turnover |
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149.200 |
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Other Income |
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0.200 |
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Total Income |
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149.400 |
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Total Expenditure |
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143.000 |
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Operating Profit |
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6.400 |
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Interest |
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0.100 |
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Gross Profit |
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6.300 |
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Depreciation |
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1.600 |
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Tax |
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1.500 |
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Reported PAT |
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3.200 |
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Dividend (%) |
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0.000 |
KEY
RATIOS
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt-Equity Ratio |
0.13 |
0.35 |
1.02 |
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Long Term Debt-Equity Ratio |
0.13 |
0.26 |
0.52 |
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Current Ratio |
1.46 |
1.57 |
1.62 |
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TURNOVER RATIOS |
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Fixed Assets |
1.49 |
1.19 |
1.23 |
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Inventory |
3.27 |
3.27 |
3.07 |
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Debtors |
8.65 |
7.46 |
6.95 |
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Interest Cover Ratio |
16.50 |
10.38 |
4.19 |
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Operating Profit Margin(%) |
8.72 |
7.62 |
6.60 |
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Profit Before Interest And Tax Margin(%) |
7.89 |
6.73 |
5.67 |
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Cash Profit Margin(%) |
5.44 |
6.32 |
4.82 |
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Adjusted Net Profit Margin(%) |
4.60 |
5.43 |
3.89 |
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Return On Capital Employed(%) |
24.00 |
13.46 |
9.72 |
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Return On Net Worth(%) |
15.62 |
13.59 |
11.98 |
LOCAL AGENCY FURTHER INFORMATION
REVIEW OF
OPERATIONS
The financial results given above are indicative of the progress made by
the Company mainly as result of certain major repairs and replacement of worn
out machinery parts in the previous year. The capacity of the plant increased
by a great extent resulting into increased production and sales. The plant was
shut down for annual maintenance from 8th to 22nd April' 2005 only as compared
to last year when the plant had to be closed in June, July and also in
September for boiler repair. With a view to improve the working of the plant
the Company proposes to continue with the replacement and substitution of the
worn out and inoperative parts in the current financial year i. e. 2006- 07.
There has been significant improvement in the earning of revenues as the operations
increased by 28.77 percent. The following table of production and sales for the
current and the previous year are indicative of the improvement in the
production and sales.
FINANCE
After repaying the loan with the interest to the State Bank of
Industry Structure
and Development:
The Company is manufacturing gelatine used mainly in Pharmaceuticals and
Foods. Hard Shell Gelatine is used for manufacturing capsules and Soft Shell
Gelatine in foods. DCP is a by product of Gelatine, a Nutritious Cattle Feed.
The total yearly production of Gelatine in
Gelatine Industry
in
The Industry recorded a growth of 35.66% during the financial year ended
31/03/2006. The Company during the period under report recorded an Increase in
Sales Turnover to Rs.167.400 Millions against that of the previous year
Rs.123.400 Millions.
The Soft Shell Gelatine, Low Bloom Gelatine and by-product DCP
manufactured by the Company are well accepted in the market.
The raw material suppliers do not allow any credit, which was available
earlier and on the contrary the company has to give 30 to 45 days Credit to its
customer with the result profitability gets affected adversely.
Fixed Assets :
v
Leasehold land
v
Building factory
v
Staff quarters
v
Plant and machinery
v
Furniture and fixtures
v
Office equipments
v
Computer
v
Vehicles
v
Laboratory
v
Equipments
v
Building construction
v
Machinery Typewriter
v
Air conditioner
Website Details :
Company Profile
From the late sixties to the early seventies, two plants had already
been set up in
They have a well qualified technical team and leading them is their
Chief Factory Technical Manager, who has around 30 years of experience in the
field and has been trained in
The Latest
Technology at C.J.
For this they decided to approach G.T. Gelatine technology of the
At the head of G.T. are john Gregory, M.B.E., T.D. and Ken Thomas B.Sc,
C.Chem, F.R.S.C both of whom are recognised internationally as experts in the
Gelatine field, and who continue to provide us with valuable assistance.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records 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.40.84 |
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|
1 |
Rs.81.81 |
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Euro |
1 |
Rs.55.03 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
YES |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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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
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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 |
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