MIRA
INFORM REPORT
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Report Date : |
07.11.2008 |
IDENTIFICATION
DETAILS
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Name : |
JAIPAN INDUSTRIES LIMITED |
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Registered Office : |
4/3 Sonal Apartments, Sonawalla Cross Road, No. 1, Goregaon (East), Mumbai-400063,
Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
27.04.1965 |
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Com. Reg. No.: |
11-13188 |
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CIN No.: [Company
Identification No.] |
L28991MH1965PLC013188 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMJ11224D |
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PAN No.: [Permanent
Account No.] |
AAACS5636F |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are listed on
stock exchange. |
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Line of Business : |
Manufacturer and Exporter of Appliances and Non-stick Cook wares |
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 490000 |
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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 company having satisfactory track. The
company’s products are sold under the bran name ‘JAIPAN’. General financial
position is satisfactory. Payments are usually correct and as per
commitments. Trade relations are fair. The company can be considered normal for business dealings at usual
trade terms and conditions. |
INFORMATION PARTED
BY
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Name : |
Mr. Nishant |
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Designation : |
Sales Manager |
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Date : |
06.11.2008 |
LOCATIONS
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Registered Office : |
4/3 Sonal Apartments, Sonawalla Cross Road, No. 1, Goregaon (East),
Mumbai-400063, Maharashtra, India |
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Tel. No.: |
91-22-8731716 / 3777 / 3456 / 0753 / 4761 |
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Fax No.: |
91-22-8738315 |
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E-Mail : |
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Website : |
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Corporate Office : |
17, Cama Industrial Estate, Goregaon (East), Mumbai-400063,
Maharashtra, India |
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Tel. No.: |
91-22-66919171/ 8/ 55704037/ 26852274 |
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Fax No.: |
91-22-66919179 |
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E-Mail : |
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Factory : |
Located at ·
Mumbai, ·
Palghar, District Thane, Maharashtra ·
Silvassa, Daman, Union Territory |
DIRECTORS
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Name : |
Mr. J N Agarwal |
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Designation : |
Chairman and Managing Director |
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Date of Birth/Age : |
52 Years |
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Qualification : |
B.Com |
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Expertise : |
Business Administration |
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Date of Appointment : |
01.04.1999 |
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Name : |
Mr. Atin J Agarwal |
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Designation : |
Director |
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Date of Birth/Age : |
29 Years |
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Qualification : |
B.Com |
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Experience : |
Business Administration |
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Date of Appointment : |
01.09.1999 |
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Name : |
Mr Shirish Gotecha |
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Designation : |
Director |
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Name : |
Mr. Arjun Singh Mehrotra |
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Designation : |
Director |
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Name : |
Mr. Ashwini O. Sharma |
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Designation : |
Director |
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Date of Birth/Age : |
51 Years |
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Qualification : |
B.A |
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Expertise : |
Management |
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Date of Appointment : |
25.03.2002 |
KEY EXECUTIVES
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Name : |
Mr. Nishant |
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Designation : |
Sales Manager |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.03.2007
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters and their relatives |
2049192 |
33.59 |
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Banks/ FIS/ Insurance Company (Central / State Government / Non-Government Institutions) |
84000 |
1.38 |
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Corporate Bodies |
1189184 |
19.50 |
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NRI’s / OCBs |
7451 |
0.12 |
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Indian Public |
2668527 |
43.75 |
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Others (Clearing members) |
101486 |
1.66 |
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Total |
6099840 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of Appliances and Non-stick Cook wares |
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Products : |
·
Mixer Grinder ·
Juicer ·
Iron ·
Ceiling Fan ·
Non-Stick Items ·
Tava-Kadai ·
Frying Pan ·
Washing Machine ·
Camera ·
Cordless Phone ·
Roti Makers ·
Gas Stoves ·
Flasks ·
Tea/ Coffee Makers ·
Pager ·
Emergency Light ·
Tea Kettle ·
Popcorn Machine ·
Hair Dryer ·
Fan |
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Brand Names : |
JAIPAN |
PRODUCTION STATUS
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Particulars |
Unit |
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Installed
Capacity |
Actual
Production |
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Mixer Grinder |
Nos. |
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40000 |
-- |
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Non Stick |
Nos. |
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500000 |
79316 |
GENERAL
INFORMATION
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Customers : |
Wholesalers and Retailers |
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No. of Employees : |
+ 300 |
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Bankers : |
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Facilities : |
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Banking
Relations : |
Sartisfactory |
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Auditors : |
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Name : |
Ashok K Lohiya and Associates Chartered Accountant |
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Address : |
Goregaon (East), Mumbai |
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Associates/Subsidiaries : |
·
Jaipan Appliances ·
Hansa Motors Works ·
Jaipan C2C Company ·
Jaipan Kitchen Appliances ·
Jaipan Teleshoppe Private Limited |
CAPITAL STRUCTURE
As on 31.3.2007
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
6100000 |
Equity Shares |
Rs. 10/- each |
Rs. 61.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
60998400 |
Equity Shares |
Rs. 1/- each |
Rs. 60.998
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
60.998 |
60.998 |
61.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
37.281 |
35.932 |
35.500 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
98.279 |
96.930 |
96.500 |
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LOAN FUNDS |
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1] Secured Loans |
21.024 |
19.298 |
13.700 |
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2] Unsecured Loans |
3.480 |
3.092 |
0.500 |
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TOTAL BORROWING |
24.504 |
22.390 |
14.200 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
122.783 |
119.320 |
110.700 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
16.689 |
17.957 |
18.300 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.190 |
0.190 |
0.200 |
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DEFERREX TAX ASSETS |
0.330 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
30.328
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25.931 |
21.200 |
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Sundry Debtors |
71.975
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44.434 |
40.500 |
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Cash & Bank Balances |
13.969
|
8.188 |
6.200 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
60.232
|
79.296 |
60.400 |
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Total
Current Assets |
176.504
|
157.849 |
128.300 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
70.230
|
55.276 |
35.200 |
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Provisions |
0.700
|
1.400 |
0.900 |
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Total
Current Liabilities |
70.930
|
56.676 |
36.100 |
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Net Current Assets |
105.574
|
101.173 |
92.200 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
122.783 |
119.320 |
110.700 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
165.874 |
148.212 |
133.600 |
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Other Income |
4.384 |
0.546 |
0.300 |
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Material lost in Flood |
0.000 |
4.028 |
0.000 |
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Total Income |
170.258 |
152.786 |
133.900 |
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Profit/(Loss) Before Tax |
2.238 |
0.902 |
2.400 |
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Provision for Taxation |
0.889 |
0.500 |
0.700 |
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Profit/(Loss) After Tax |
1.349 |
0.402 |
1.700 |
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Earnings in Foreign Currency : |
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Export Earnings |
40.493 |
23.181 |
NA |
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Imports : |
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Export Earning |
NA |
4.945 |
NA |
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Expenditures : |
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Cost of Goods Sold |
119.742 |
91.933 |
0.000 |
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Manufacturing Expenses |
32.930 |
29.896 |
2.000 |
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Employee Cost |
0.000 |
0.000 |
4.500 |
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Selling and Administration Expenses |
0.000 |
0.000 |
23.200 |
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Miscellaneous Expenses |
0.000 |
0.000 |
5.200 |
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Interest and Financial charges |
0.000 |
0.000 |
2.100 |
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Increase or decrease in stock |
0.000 |
0.000 |
[5.200] |
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Material Lost in Flood |
0.000 |
4.029 |
0.000 |
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Raw Material Consumed |
12.571 |
23.324 |
95.600 |
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Power and Fuel Cost |
00.000 |
0.000 |
1.300 |
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Depreciation & Amortization |
2.777 |
2.702 |
2.800 |
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Total Expenditure |
168.020 |
151.884 |
131.500 |
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SUMMARISED RESULTS
|
PARTICULARS |
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31.03.2008 Full Year |
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Sales Turnover |
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|
219.000 |
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Other Income |
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|
3.300 |
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Total Income |
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|
222.300 |
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Total Expenditure |
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|
208.200 |
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Operating Profit |
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|
14.100 |
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Interest |
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|
1.700 |
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Gross Profit |
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|
12.400 |
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Depreciation |
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|
2.900 |
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Tax |
|
|
1.500 |
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Reported PAT |
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|
8.000 |
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Dividend (%) |
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|
0.000 |
QUARTERLY RESULTS
|
PARTICULARS |
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|
30.06.2008 1st
Quarter |
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Sales Turnover |
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|
71.600 |
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Other Income |
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|
0.300 |
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Total Income |
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|
71.900 |
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Total Expenditure |
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|
68.400 |
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Operating Profit |
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|
3.500 |
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Interest |
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|
0.500 |
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Gross Profit |
|
|
3.000 |
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Depreciation |
|
|
0.400 |
|
Tax |
|
|
0.000 |
|
Reported PAT |
|
|
2.600 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.24 |
0.19 |
0.12 |
|
Long Term Debt-Equity Ratio |
0.06 |
0.03 |
0.01 |
|
Current Ratio |
2.06 |
2.31 |
2.48 |
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TURNOVER RATIOS |
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Fixed Assets |
3.16 |
2.93 |
2.73 |
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Inventory |
5.90 |
6.29 |
7.72 |
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Debtors |
2.85 |
3.49 |
3.40 |
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Interest Cover Ratio |
1.70 |
1.69 |
2.14 |
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Operating Profit Margin(%) |
2.71 |
3.31 |
5.46 |
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Profit Before Interest And Tax Margin(%) |
1.02 |
1.48 |
3.37 |
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Cash Profit Margin(%) |
2.17 |
2.09 |
3.37 |
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Adjusted Net Profit Margin(%) |
0.48 |
0.27 |
1.27 |
|
Return On Capital Employed(%) |
1.40 |
1.91 |
4.19 |
|
Return On Net Worth(%) |
0.82 |
0.41 |
1.78 |
LOCAL AGENCY
FURTHER INFORMATION
REVIEW OF
OPERATIONS:
The company has added new models of Mixer Grinders,
Oven-Toaster-Griller, Sandwich Toasters, Geysers, Non-stick Products and new
model of Washing Machine.
Contingent
Liabilities:
Contingent Liabilities not provided for in respect of:
|
Particulars |
31.03.2007 Rs.
In Millions |
|
Bank Guarantee |
3.010 |
|
Bill of Exchange |
NIL |
Note: A bills of exchange for Rs. 8.256 Millions disputed with Bank of India,
has been settled for Rs. 5.837 Millions and has been charged to profit and Loss
A/C for the year under Audit. Accordingly matter pending with DART has been
settled.
Fixed Assets:
·
Freehold Land
·
Factory Building
·
Factory Premises
·
Plant and Machinery
·
Mould and Dies
·
Motor Vehicles
·
Furniture and Fixtures
·
Computers
·
Office Equipments
·
Motor Cycle
AS PER WEBSITE
Profile:
Subject is one of the largest company involved in manufacturing and marketing
of various Home Appliances and Non stick cookware’s under the brand name of
JAIPAN. It is also specialized in manufacturing of consumer durable products.
Subject has a very strong presence in Direct Marketing, Distribution,
Teleshopee, Multi Level Marketing and Corporate Sales in India.
Press Release:
Jaipan Industries – EGM on Nov 08, 2008
October 17, 2008
Jaipan Industries Ltd has informed BSE that an Extra Ordinary General
Meeting (EGM) of the shareholders of the Company will be held on November 08,
2008, to consider and approved the followings:
1. Issue of Bonus shares in the
ratio of one Equity share for every Two Equity Shares held.
2. Issue of Global Depository / American Depository Receipts, Foreign
Currency Convertible Bonds for an aggregate amount up to USD 25 million in one
or more tranches subject to the approval of Shareholders and other concerned
authorities.
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 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.47.67 |
|
UK Pound |
1 |
Rs.75.47 |
|
Euro |
1 |
Rs.61.19 |
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 |
|
|
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--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
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
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 |
|