MIRA
INFORM REPORT
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Report Date : |
18.10.2007 |
IDENTIFICATION DETAILS
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Name : |
JAINSONS INDUSTRIES |
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Registered Office : |
Basti Bawa Khel, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
1971 |
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TAN No.: [Tax Deduction & Collection Account No.] |
JLDJOOO17D |
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PAN No.: [Permanent Account No.] |
AAAFJ5878R |
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Legal Form : |
Partnership concern with an Unlimited Liability of the Partners |
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Line of Business : |
Manufacturer, Trader and Exporter of Sanitary Pipe Fittings |
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 51600 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established Concern having satisfactory track. Trade
relations are fair. General Financial Position is satisfactory. Payments are
usually correct and as per commitments. The Concern can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
Basti Bawa Khel, |
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Tel. No.: |
91-181-5093433 / 2651431
/ 2651733 / 6545333 |
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Mobile No.: |
91-9814888333
(Mr. Rakesh Jain) |
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Fax No.: |
91-181-2650642 |
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E-Mail : |
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Website : |
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Area : |
4,000sq.mt. |
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Location : |
Owned |
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PARTNERS
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Name : |
Mr. Ashok Jain |
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Designation : |
Partners |
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Address : |
Jalandhar |
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Date of Birth/Age : |
54 years |
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Qualification : |
B. Tech |
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Experience : |
21 years |
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Name : |
Mr. Rakesh Jain |
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Designation : |
Partners |
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Address : |
Jalandhar |
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Date of Birth/Age : |
51 years |
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Qualification : |
M.A |
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Experience : |
17 years |
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Name : |
Mr. Kimtilal Jain |
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Designation : |
Partners |
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Address : |
Jalandhar |
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Date of Birth/Age : |
59 years |
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Qualification : |
Graduate |
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Experience : |
26 years |
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Name : |
Mr. Desraj Jain |
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Designation : |
Partners |
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Address : |
Jalandhar |
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Date of Birth/Age : |
86 years |
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Qualification : |
High School |
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Experience : |
56 years |
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BUSINESS DETAILS
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Line of Business : |
Manufacturer,
Trader and Exporter of Sanitary Pipe Fittings |
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Products : |
˛ G.I. Pipe Fittings (Domestic) |
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Exports to : |
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Countries: |
U.K, Ethopia,
Turky, |
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Imports from : |
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Products : |
Finished Goods |
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Countries : |
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Terms : |
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Selling : |
L/C, Credit and
cash (30 days) |
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Purchasing : |
L/C, Credit and
cash (30 days) |
GENERAL INFORMATION
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Customers : |
Local &
Foreigners, Retailers and End Users |
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No. of Employees : |
90 |
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Bankers : |
Canara Bank, Mai
HiraGate, Jalandhar |
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Facilities : |
Rs.20.000
Millions |
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Banking Relations : |
Satisfactory |
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Auditors : |
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Name : |
Mr. R D Sharma
& Company, Chartered
Accountants |
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Address : |
Jalandhar |
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Sister Concerns: |
Jainsons
Malleables B-3, Sports and
Surgical complex, Line of Business:
Ferrous Casting and CPVC Fittings |
CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs.12.900 Millions |
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Borrowed : |
-- |
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Total : |
Rs.12.900 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
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Particulars |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
110.000 |
75.000 |
72.500 |
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Profit/Loss for the year |
NA |
3.850 |
3.600 |
Expected Sales (2007-08) : Rs. 130.000 Millions
LOCAL AGENCY FURTHER INFORMATION
TRADE
REFERENCES:
Ř
Ř
Hagbes
Plc - Ethopia
Company Profile:
They strive to be a shining star in the
field of Malleable Galvanised Pipe fitting for Natural gas Transmission
Progressive, innovative & profitable Organization in the field of the
Malleable Galvanised Pipe fittings serving customers through high quality &
cost effective products & services with concern for people & safety.
Ř
The
following are the main concern in achieving their mission
Ř
To
their customer, they are committed to provide world standard product
maintaining reasonable liquidity to fulfil their financial obligations to them.
Ř
To
their employees, they are committed to provide a dynamic developmental
environment for achieving personal to the excellence & growth & there
by creating a highly motivate work force with a sense of belongingness
organisation.
Ř
To the
society, they are committed to being a responsible corporate citizen by
following their obligations to the society at large & also by maintaining
high level of safety measure in their products.
History
Performance With Excellence
Mr. Des Raj Jain, founder of Jainsons
Industries started production in 1971 of Malleable pipe fittingwith production
of 0.15 MT daily with a small capital of Rs. 10,000/- (US$2000). As the time
passed by, the owners with their intellectual skills and full devotion has
taken the company to a recognizable standard and presently company is producing
4 M T of fitting daily and have plans to increase the production up to 5 M T
daily within this year Further we are engaged in marketing of forged brass
valves namely Ball Valves, Gate Valves, Jolly Check Valves, Foot Valves as well
as fancy bathroom fittings.
Howsoever their local market share is about
3% only. Their Product range is Elbow. Tee, Socket, union, Hex nipple, Plug,
Caps, Cross, Reducer Elbow, Reducer Socket, Reducer tee etc. from size1/2’’ to
6’’ and they are supplying almost 25% production to Compressed natural Gas
distribution companies and are looking for similar customers for expansion at
Jainsons their Vision is:
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To
provide development environment to their employees to achieve personal
excellence and growth.
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To
provide their customers, World standard products with reasonable prices.
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To
contribute to the society a healthy environment by being a responsible
corporate corporate citizen, with high level of safety standard and
professional management.
COMPANY DATA
The Company is producing Galvanised Malleable Cast Iron Fittings i.e. Elbows,
Tee, Socket, Union, Hex Nipple, Plug, Caps, Cross, Reducer Elbow, Reducer
Socket, Reducer Tee etc. from size ˝" to 6" for water supply, pipe
joints in sanitary and for distribution of piped Compressed Natural Gas in
house holds. Standards followed are as per IS : 1879, BS-1256 &
ANSI B-16.3, EN-10242, ISO 9001 : 2000. They have been
supplying pipe fittings for last five years for piped gas to M/s. Gujarat Gas
Co. Ltd., Surat ( a British Gas Subsidiary), M/s. Mahanagar Gas Ltd., Mumbai (
a Joint Venture of GAIL & BPCL Delhi), Indraprastha Gas Ltd., New Delhi and
GAIL India Ltd. Delhi as well as to Delhi Metro Rail Corporation, Delhi
The quality policy of the company is to provide safer, reliable & quality products at competitive prices to our customers by continuously improving our technology & systems comparable to International Standards. Company has got in house facilities for chemical & physical testing of raw castings, annealed castings & galvanised castings. Pipe fittings for gas are subjected to a pneumatic test pressure of 15 Kg/cm2 while fully immersed in water. At JSI the following Quality Objectives are set:
- TO BE A
CUSTOMER DRIVEN COMPANY.
- TO EXCEL IN
THE
The
company has an annual installed capacity of 3500 MT at present company is
expecting to utilize 80% of its capacity i.e. 2800 MT & reserve 20% of its
unutilised capacity for exports. The company has wide range of products with
size ˝" to 6". The products are tested at hydraulic pressure of 300
lbs./inch2 /20 Kgs/cm2. Cost Iron, Steel Scrap & H.G.
Zinc are used in making the products. All facilities are under single roof
& at present no subcontracting is done.
PRODUCTION
EQUIPMENT
The Company has installed
the following machinery and equipment : -
- One Induction
furnace 350 K
- Four Shot
Blasting Machines, complete with cleaning capacity 3 MT daily each.
- Five
Annealing Furnaces Oil Fired with 20 MT Capacity per Batch.
- Five Grinding
Attachment for Grinding @ 20 MT per attachment per single shift.
- One Oil Fired
Galvanising Furnaces with capacity 1 MT per hour.
- Eight Gear
Machines 2" Threading capacity 100 K.G. each per hour.
- 2" Size
Automatic Gear Machines Double type with capacity 500 K.G. each/daily .
- Five Drill
Machines up to 2" capacity.
- Eight Lathe
Machines 4˝’.
- Four Lathe
Machines 6’.
- Three
Generator Sets 15 KVA & 125 KVA / 6
INFRASTRUCTURE (WORKING ENVIRONMENT
The company is a member of Indian
Standards Institute (Bureau of Indian Standards) and is taking guidance for
manufacturing and testing of Malleable Fittings.
Moreover
company is registered with Central Institute of Hand Tools, Jalandhar having
test facilities of each and every type including calibration facilities of all
type of gauges and instruments. The company is also registered with National
Small Industries Corporation and Small Industries Services Institute,
Ludhiana/Delhi for guidance, promotion and upgradation of quality systems.
The company quality system
has been certified as per ISO 9001: 2000.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.39.68 |
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1 |
Rs.80.53 |
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Euro |
1 |
Rs.56.23 |
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 |
5 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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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 |
NO |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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46 |
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 |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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