MIRA
INFORM REPORT
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Report Date : |
07.11.2011 |
IDENTIFICATION DETAILS
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Name : |
JAIN IRRIGATION
SYSTEMS LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
30.12.1986 |
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Com. Reg. No.: |
11-42028 |
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Capital Investment / Paid-up Capital : |
Rs.771.450
Millions |
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CIN No.: [Company Identification No.] |
L29120MH1986PLC042028 |
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IEC No.: |
0388080361 |
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TAN No.: (Tax Deduction & Collection Account No.) |
NSKJ00066D |
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PAN No.: (Permanent Account No.) |
AAACJ7163Q |
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Legal Form : |
A
Public Limited Liability Company. The company’s shares are listed on the
Stock Exchanges. |
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Line of
Business : |
Manufacture and export of drip/micro irrigation systems, sprinkler
systems, PVC pipes and fittings, valves, HDPE and MDPE pipes, solar water
heaters and green houses, tissue culture, liquid fertilizers, plastic sheets,
dehydrated onion and vegetables. |
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No. of Employees : |
6504
(Approximately) |
RATING & COMMENTS
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MIRA’s Rating
: |
A (62) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit
Limit : |
USD 67000000 |
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Status : |
Good |
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Payment
Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject
is an established company having fine track. Financial position of the
company appears to be sound. Trade relations are reported as fair. Business is
active. Payments are reported to be regular and as per commitments. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office / Head Office/ Research and |
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Tel. No.: |
91-257-2258011 / 2260011 / 22 |
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Fax No.: |
91-257-2258111 / 2261111 / 22 |
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E-Mail : |
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Website: |
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Area : |
71 Acres |
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Location : |
Owned |
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Factory 2 : |
Dhobikuva, Muvad, Padra, Vadodra, |
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Tel. No.: |
91-2662-267281/267400 |
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Fax No.: |
91-2662-267363 |
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E-Mail : |
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Area : |
4 Acres |
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Location : |
Owned |
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Factory 3 : |
Jain Hills, |
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Tel. No.: |
91-257-2260033/44,/ 2260288 |
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Fax No.: |
91-257-2261144 |
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E-Mail : |
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Area : |
236 Acres |
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Location : |
Owned |
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Factory 4 : |
S.No.587 and 588, Village : Kondamadgu,
Mandal Bibi Nagar, District Nalgonda - 508 126, |
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Tel
No. : |
91-8685-277302
/ 3 |
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Fax
No. : |
91-8685-277305 |
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Factory
5 : |
Site No. 258-90, Village Ellaymuthur,
Udumalpet - 642 154, District |
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Tel
No. : |
91-4252-278401
/ 2 |
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Fax
No.: |
91-4252-278403 |
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E-Mail
: |
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Factory
6 : |
100 Gollapalli, Village Gangadhara Mandal
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Tel
No. : |
91-8572-273703
/ 202022 / 273703, |
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Fax
No.: |
91-8572-273663 |
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E-Mail
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Factory
7 : |
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Tel
No. : |
91-8572-273185
/ 86 / 273185 / 202033 |
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Fax
No.: |
foodchittoor2@jains.com |
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Factory
8: |
Plot No. SP-1, Matsya Industrial Area, Alwar - 301 030, |
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Tel
No. : |
91-144-2881173 / 74 / 75 / 99 |
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E-Mail
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Factory
9: |
Survey No. 215, JIDC4, At Post Ghangali, Taluka Sihor, District |
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Tel
No.: |
02846-294222/225503 |
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E-Mail
: |
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Demo
and Research and Development Farm 1
: |
Jain Hills, P.O.Box: 72, Jalgaon- 425 001, |
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Demo
and Research and Development Farm 2
: |
At. Takarkheda, Post. Kadholi, Taluka Erandol, District Jalgaon-
425001, |
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Demo
and Research and Development Farm 3 : |
Angora Breeding Farm, Village Pirdi, Taluka Mahol, District Kulu, |
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Demo
and Research and Development Farm 4 : |
Site No. 258-90, |
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Demo
and Research and Development Farm 5 : |
Aarogyadham” Kasturba Nisarga Upchar Kendra, Sevagram, Wardha, |
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Plants in
Overseas : |
Jain Irrigation Inc. - (Micro
Irrigation) 2851, East, Jain Irrigation Inc. [Winter Haven,
Florida] - P.O. Box 3546, 3857 W. Lake Hamilton Dr.Winter, Haven, FL 33881 Chapin Watermatics, Inc. - (Micro
Irrigation) 740, Cascade Specialities Inc. - (Onion
Dehydration Plant) NuCedar Mills, Inc.- (Building
Products-1000 Sheridan Siding and Trim) Tom
opar,President and CEO, Street, Sleaford Quality Foods Limited [ NaanDanJain Irrigation System Limited [ NaanDanJain Irrigation System Limited [ NaanDanJain Irrigation System Ltd. [Brazil] - Rua
Biazo Vicentin No. 260, Bairro idade Jardim, P.O.Box 175Leme SP - CEP
13614-330. NaanDanJain Irrigation System Limited [Spain]- P.I. La
Redonda, c/XIV nº 26 04710 Santa Maria del guila – El Ejido Almera
– ESPAA NaanDanJain Irrigation System Ltd. [Chile] -
Agrosystems, S.A.Carretera San Martin 16.500, Loteo Industrial Los
Libertadores – Colina Jain Sulama Sistemleri Sanayi Ve Ticaret AS. [ THE Machines SA - Rue de l’industries
5, CH-1462 YVONAND, ProTool AG - Bernstrasse 52, CH-4923 |
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Laisioning
Office : |
7, |
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Tel
No.: |
91-22-22109090 / 22610011 / 22129090 / 22670011 |
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Fax
No. |
91 - 22 - 226
211 77, 226 411 77 |
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Regional Offices : |
Located at
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Overseas
offices : |
Located at: ·
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DIRECTORS
As On 31.03.2011
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Name : |
Mr. Bhavarlal H. Jain |
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Designation : |
Chairman |
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Address : |
Jain House, 7/8, Suyog Colony, Near Girna Water Tank, Jalgaon – 425
002, |
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Date of
Birth/Age : |
69 years |
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Qualification
: |
B. Com., LL.B. |
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Experience: |
46 years |
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Name : |
Mr. Anirudha Ramkrishna Barwe |
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Designation : |
Director (Expired on 05.10.2011) |
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Address: |
B-1,
Bageshree Shanker Ghanekar Marg, Prabhadevi, Mumbai – 400 025 |
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Date of
Birth/Age : |
68 years |
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Qualification: |
M.Sc.
(Maths) |
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Experience: |
48
years |
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Name : |
Mr. Ghaneshyam Dass |
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Designation : |
Director |
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Name : |
Mr. Vasant V. Warty |
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Designation : |
Director (Nominee SBII) |
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Date of
Birth/Age : |
64 years |
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Address: |
6
Umesh Society, |
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Qualification: |
BA, LLB, CAIIB |
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Experience: |
41
years |
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Name : |
Mr.
Ramesh C.A Jain |
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Designation : |
Director |
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Address: |
6 Umesh
Society, N P thakur Road, New Rajpuriabaug, Vile Parle (E) Mumbai-400057 |
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Qualification: |
BA,
LLB |
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Name : |
Mrs.
Radhika C Pereira |
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Designation : |
Director |
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Address: |
Dodhat
Pereira and Associates, 1018, 10th Floor, Maker Chamber V, Nariman
Point, Mumbai –400021 |
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Qualification: |
Bsc.
LLB, LLM ( |
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Name : |
Mr.
Devendra Raj Mehta |
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Designation : |
Director
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Date of
Appointment: |
26.12.2007 |
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Name : |
Mr. Ashok B. Jain |
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Designation : |
Vice Chairman |
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Address: |
Jain
House, 7/8, Suyog Colony, Near Girna Water Tank, Jalgaon – 425 002, |
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Date of
Birth/Age : |
43 years |
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Qualification: |
M.
Com. |
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Experience: |
25
years |
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Previous
Employment: |
Jain Brothers
Industries – Partner |
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Date
of Appointment : |
12.01
1987 |
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Name : |
Mr. Anil
Bavarlal Jain |
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Designation : |
Managing Director |
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Address: |
Jain
House, 7/8, Suyog Colony, Near Girna Water Tank, Jalgaon – 425 002, |
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Date of
Birth/Age : |
41 years |
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Qualification
: |
B.
Com., LL.B. |
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Experience: |
23
years |
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Date
of Appointment : |
12.01.1987 |
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Previous
Employment: |
Jain
Brothers Industries – Partner |
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Name : |
Mr. Ajit B. Jain |
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Designation : |
Joint managing Director |
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Address: |
Jain
House, 7/8, Suyog Colony, Near Girna Water Tank, Jalgaon – 425 002, |
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Date of
Birth/Age : |
40 years |
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Qualification: |
B.E. |
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Experience: |
23
years |
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Date
of Joining: |
11.01.1985 |
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Name : |
Mr. Atul B Jain |
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Designation : |
Director-
Marketing |
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Date of
Appointment: |
25.08.2009 |
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Name : |
Mr. R
Swaminathan |
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Designation : |
Director
[ Technical ( |
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Address: |
Jain House,
5/B, Suyog Colony, Near Girna Water Tank, Jalgaon – 425 002, |
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Qualification: |
B.
Tech (Chem) |
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Name : |
Mr.
Arunkumar Jain |
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Designation : |
Additional
Director (w.e.f.04.03.2011) |
KEY EXECUTIVES
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Name : |
Mr. A.V. Ghodgaonkar |
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Designation : |
Company Secretary |
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Name : |
Mr. Abhay Jain |
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Designation : |
President - Marketing |
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Name : |
Mr. Manoj Lodha |
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Designation : |
President – Banking and Finance |
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Name : |
Mr. Anilkumar Kataria |
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Designation : |
President |
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Audit
Committee: |
·
Mr. Ramesh C A Jain – Member ·
Mr. Vasant V Warty – Member ·
Mr. Ghaneshyam Dass – Chairman |
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Shareholders Grievances
Committee: |
·
Mr. Vasant V Warty – Chairman ·
Mr. Ajit B Jain – Member ·
Mr. Ramesh C. A. Jain– Member |
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Compensation
Committee : |
·
Mr. Mr. Ramesh C
A Jain – Chairman ·
Mr. Ashok B Jain – Member ·
Mr. Ajit B Jain – Member ·
Mr. Vasant V wsarty – Member ·
Ms. Radhika Pereira |
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Operations
Review Committee : |
·
Mr. Ashok B Jain – Chairman ·
Mr. Anil B Jain – Member ·
Mr. Ajit B Jain – Member ·
Mr. R Swaminathan – Member ·
Mr. Atul B Jain- Member |
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2011
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Category of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding of Promoter and Promoter Group |
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20513245 |
5.35 |
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96605000 |
25.21 |
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Sub Total |
117118245 |
30.57 |
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Total
Shareholding Promoter and Prompter Group (A) |
117118245 |
30.57 |
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(B) Public Shareholding |
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6565510 |
1.71 |
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|
36290 |
0.01 |
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|
250 |
-- |
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|
217796851 |
56.84 |
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Sub Total |
224398901 |
58.57 |
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|
3523064 |
0.92 |
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|
17381861 |
4.54 |
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|
3366618 |
0.88 |
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|
17367161 |
4.53 |
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705898 |
0.18 |
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15550378 |
4.06 |
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1107485 |
0.29 |
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3400 |
- |
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Sub Total |
41638704 |
10.87 |
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Total Public Shareholding (B) |
266037605 |
69.43 |
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Total (A) + (B) |
383155850 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
-- |
-- |
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-- |
-- |
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|
2730235 |
-- |
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Sub Total |
2730235 |
-- |
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Total (A) + (B) + (C) |
385886085 |
-- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs. 0.100 million
BUSINESS DETAILS
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Line of
Business : |
Manufacture and export of drip/micro irrigation systems,
sprinkler systems, PVC pipes and fittings, valves, HDPE and MDPE pipes, solar
water heaters and green houses, tissue culture, liquid fertilizers, plastic
sheets, dehydrated onion and vegetables. |
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Products : |
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PRODUCTION STATUS
As on 31.03.2011
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Particulars |
Unit |
Installed Capacity (1) |
Actual Production |
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Micro
Irrigation Systems (2) |
MT |
212410 |
101404 |
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Piping
System (2) |
MT |
259990 |
120979 |
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Plastic
Sheets |
MT |
36300 |
14920 |
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Agro Processing |
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Dehydrated
Onion and Vegetables |
MT |
18214 |
11842 |
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Fruit
Puree and Concentrate |
MT |
141575 |
58179 |
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Solar Systems |
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Solar
Water Heating Systems |
LTR |
2000000 |
1649000 |
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Solar
Photo Voltaic Systems |
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25000000 |
7637405 |
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Tissue Culture Plants |
No’s |
30000000 |
23814905 |
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Slabs/ Tiles (3) |
Sq.mtr |
33750 |
31879 |
Note:
1 ] As certified
by Management and accepted by the auditors.
2 ] Optimum
Capacity Utilization is only 70% to 80% of installed capacity due to
seasonality factor.
3 ] Entire
production for captive consumption.
GENERAL INFORMATION
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No. of
Employees : |
6504
(approximately) |
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Bankers : |
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Facilities : |
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Banking Relations : |
-- |
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Auditors : |
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Name : |
Haribhakti and Company Chartered Accountants |
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Address : |
42, Free Press House, 4th Floor, 215, Nariman Point,
Mumbai 400 021, |
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Solicitors : |
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Name : |
Mulla and Mulla
and Craigie and Blunt and Caroe, |
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Address : |
Mulla House, 51, |
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Name : |
Solomon and
Company |
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Address : |
Calcot House, 3rd
Floor, 8/10, M.P.Shetty Marg, ( |
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Wholly Owned
Subsidiary Companies: |
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Other Related
Parties : |
Companies / Firms:
Partnership Firms :
Proprietorship :
Trust :
Trust Entities :
Foreign Companies :
|
CAPITAL STRUCTURE
As on 31.03.2011
Authorised
Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
926500000 |
Equity Shares |
Rs.2/- each |
Rs.1853.000 Millions |
|
5000000 |
Redeemable Preference Shares |
Rs. 100/- each |
Rs.500.000 Millions |
|
310000000 |
Differential
Voting Rights Equity Shares |
Rs. 2/- each |
Rs.620.000 Millions |
|
|
Total |
|
Rs.2973.000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
A] |
EQUITY SHARES: |
|
|
|
377653204 |
Equity Shares |
Rs. 2/- each |
Rs.755.300 Millions |
|
4608350 |
On conversion of ESOP |
Rs. 2/- each |
Rs.9.220 Millions |
|
962700 |
On conversion of zero coupon
convertible bonds |
Rs. 2/- each |
Rs.1.930 Millions |
|
2500206 |
Equity Shares representing underlying
European Receipts 33842 |
Rs. 2/- each |
Rs.5.000 Millions |
|
|
Sub Total |
|
Rs.771.450 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES
OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
771.450 |
783.440 |
1172.280 |
|
|
2] Share Warrants |
347.930 |
0.000 |
358.490 |
|
|
3] Reserves & Surplus |
15723.310 |
12646.110 |
8304.130 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
16842.690 |
13429.550 |
9834.900 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
16964.090 |
14022.710 |
12918.570 |
|
|
2] Unsecured
Loans |
5161.010 |
3813.070 |
636.500 |
|
TOTAL BORROWING
|
22125.100 |
17835.780 |
13555.070 |
|
DEFERRED TAX LIABILITIES
|
1224.250 |
1024.420 |
707.300 |
|
|
|
|
|
|
|
TOTAL
|
40192.040 |
32289.750 |
24097.270 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
14706.580 |
12026.270 |
9511.190 |
|
Capital work-in-progress
|
1645.050 |
1215.840 |
998.340 |
|
|
|
|
|
|
|
INVESTMENT
|
4032.790 |
3964.660 |
3905.680 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
9149.480
|
6061.540
|
5195.180
|
|
|
Sundry Debtors
|
14818.160
|
8876.000
|
7816.010
|
|
|
Cash & Bank Balances
|
3830.300
|
4378.130
|
879.140
|
|
|
Other Current Assets
|
246.160
|
251.540
|
220.580
|
|
|
Loans & Advances
|
5224.330
|
3735.900
|
3235.540
|
Total Current Assets
|
33268.430
|
23303.110
|
17346.450
|
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Sundry Creditors
|
11036.140 |
6128.290 |
4884.190 |
|
|
Current Liabilities
|
1896.520
|
1594.390
|
1994.370
|
|
|
Provisions
|
528.150
|
497.450
|
785.830
|
Total Current Liabilities
|
13460.810
|
8220.130
|
7664.390
|
|
Net Current Assets
|
19807.620
|
15082.980
|
9682.060
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
40192.040 |
32289.750 |
24097.270 |
|
PROFIT &
LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
33309.010 |
27229.110 |
21789.450 |
|
|
|
Other Income |
172.930 |
247.420 |
169.670 |
|
|
|
TOTAL (A) |
33481.940 |
27476.530 |
21959.120 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material Consumed, Purchased etc. |
21281.480 |
16905.380 |
12897.940 |
|
|
|
Manufacturing Expenses |
2744.430 |
2209.960 |
1536.930 |
|
|
|
Payment to and Provision for Employees |
1503.210 |
1036.560 |
809.590 |
|
|
|
Selling and Distribution Expenses |
2052.800 |
1744.700 |
1446.580 |
|
|
|
Administrative and other Expenses |
833.460 |
681.160 |
537.180 |
|
|
|
Increase/ Decrease In Stock |
(2425.020) |
(1037.180) |
(17.550) |
|
|
|
Amount written off and provision |
120.650 |
95.570 |
45.920 |
|
|
|
Difference in foreign exchange rate |
(102.120) |
(711.080) |
777.220 |
|
|
|
Prior Period items |
0.000 |
(9.210) |
4.170 |
|
|
|
TOTAL (B) |
26008.890 |
20915.860 |
18037.980 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
7473.050 |
6560.670 |
3921.140 |
|
|
|
|
|
|
|
|
|
Less |
INTREST
FINANCIAL EXPENSES (D) |
2363.630 |
1942.970 |
1610.640 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
5109.420 |
4617.700 |
2310.500 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
834.340 |
685.920 |
472.850 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
4275.080 |
3931.780 |
1837.650 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1322.490 |
1219.340 |
635.870 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
2952.590 |
2712.440 |
1201.780 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
4449.240 |
2850.900 |
2462.630 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
300.000 |
271.200 |
120.200 |
|
|
|
Transfer to Capital Redemption Reserve |
23.130 |
425.390 |
436.800 |
|
|
|
Proposed Preference Dividend for the year |
0.230 |
13.540 |
30.960 |
|
|
|
Provision for Dividend Tax on Preference
Dividend for the year |
0.040 |
2.300 |
5.260 |
|
|
|
Proposed Equity Dividend |
385.790 |
343.320 |
188.290 |
|
|
|
Provision for Dividend Tax on Equity
Dividend |
64.07 |
58.350 |
32.000 |
|
|
BALANCE CARRIED
TO THE B/S |
6628.570 |
4449.240 |
2850.900 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Fob Value of Exports (on the basis of bill of lading) |
4920.470 |
4889.570 |
4449.820 |
|
|
TOTAL EARNINGS |
4920.470 |
4889.570 |
4449.820 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials, Components and Stores and Spares |
7781.150 |
6796.710 |
3064.622 |
|
|
|
Capital Goods |
1787.890 |
5837.810 |
839.180 |
|
|
TOTAL IMPORTS |
9569.040 |
12634.520 |
6796.718 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
7.75 |
7.17 |
16.12 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
|
Type |
1ST
Quarter |
|
Net Sales |
9513.100 |
|
Total Expenditure |
7365.600 |
|
PBIDT (Excl OI) |
2147.500 |
|
Other Income |
8.000 |
|
Operating Profit |
2155.500 |
|
Interest |
775.700 |
|
Exceptional Items |
0.000 |
|
PBDT |
1379.80 |
|
Depreciation |
238.900 |
|
Profit Before Tax |
1140.900 |
|
Tax |
316.600 |
|
Provisions
and contingencies |
0.000 |
|
Profit
After Tax |
824.300 |
|
Extraordinary
Items |
0.000 |
|
Prior
Period Expenses |
(0.800) |
|
Other
Adjustments |
0.000 |
|
Net Profit |
823.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
8.82
|
9.87
|
5.48
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
12.83
|
14.44
|
8.45
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.91
|
11.13
|
6.84
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.25
|
0.29
|
0.19
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.11
|
1.94
|
2.16
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.47
|
2.83
|
2.26
|
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS:
The net sales have
increased by 22.3% on YoY basis, since exports remained flat at Rs.5,158
Millions while the domestic sales improved by an impressive 25.6% at Rs. 27,349
Millions backed by growth in MIS/SIS (32%), Agro processing (10%) and
Pipes(9%). The MIS/SIS growth was primarily due to increased retail sales in
States like Maharashtra, Andhra Pradesh, Gujarat, and
Sub Division of Equity
Shares, Preferential Issue, ESOP related Shares allotment, DVR’s
As the Members may
be aware the Company had announced a sub division of Equity Shares of Rs.10
each into Ordinary Equity Shares of Rs.2 each on 9th August 2010.
The sub division became effective on 1st November 2010 and the new
ISIN number for Equity Shares is INE
175A01038. In terms of the Shareholder’s approval of 9th March 2011, the
Board of Directors have allotted on a preferential basis as per applicable SEBI
(ICDR) Guidelines 2009 6.1 Millions Equity Warrants of Rs.228.15 each
aggregating to Rs.1391.72 Millions against deposit of Rs. 347.93 Millions
(being 25% of issue price) by the select Individuals and entities of the
Promoter’s Group. The Equity Warrants carry an option for request for allotment
of Equity Shares of Rs.2 each for cash at a premium of Rs.226.15 each by paying
the balance 75% money anytime within 24th September 2012. During the year Associates holding ESOP’s equivalent to
45,38,000 opted to exercise the option attached to the their options and
applied for 4,538,000 Equity Shares of Rs.2 each at an exercise price of Rs.
61.55 each (2,250 Equity Shares), Rs.82.69 each (2,090,425 Equity Shares) and
Rs.113.60 each (2,445,325 Equity Shares). This resulted in an increase in paid
up capital by Rs.9.08 Millions and securities premium account by Rs.441.71
Millions. While after 31st March 2011 Associates holding ESOP’s dividend
equivalent to 161,625 opted to exercise the option attached to the their ESOP’s
and applied for 161,625 Equity Shares of Rs.2 each at an exercise price of Rs.
61.55 each (1,500 Equity Shares), Rs.82.69 each (134,200 Equity Shares) and
Rs.113.60 each (25,925 Equity Shares). This resulted in an increase in paid up
capital by Rs.0.32Millions and securities premium account by Rs.13.81 Millions.
The proceeds of deposit amount of Equity Warrants and the Equity Shares
allotted against ESOP options exercised have augmented the long term resource
base of the Company and hence the Directors confirm having used the funds as per
the objects of the said issues. On the 27th January 2011, the Board Of
Directors announced the decision to capitalize reserves and allot Equity Shares
of Rs.2 each with Differential Voting Rights (DVR’s) and as per requirements of
Companies (Passing of Resolutions by Postal ballot) Rules, 2001, the members
have passed with requisite majority the resolutions to amend the Capital Clause
in the Articles of Association to enable the Company to issue such DVR Equity
Shares. Since then the Company has applied on 15th February 2011 through the
designated Stock Exchange (i.e. The Bombay Stock Exchange,) the necessary
exemption under the under sub-rule (7) of rule 19 of Securities Contracts
(Regulation) Rules, 1957 for relaxing strict enforcement of clauses (b) to sub-rule(2)
of Rule 19 thereof in respect of proposed Bonus Issue of DVR Equity Shares. The
exemption applied for above is still awaited and Company shall fix a “Record
Date” soon after the SEBI exemption is received and the SE’s give “in
Principle” permission for listing of the DVR bonus Shares. Thereafter the
process of allotment and issue of DVR Equity Shares shall be completed
expeditiously.
Resource mobilization and capacity expansion
During the year ,
the Company has raised from international financial markets / institutional
lenders, further Buyers Credit/ Foreign Currency unsecured Loans based on LIBOR
linked rate at competitive pricing. Total amount sanctioned and disbursed is
CHF 17.75Millions (equivalent to Rs.826.5 Millions). The loan amounts are being
used by the Company for the expansion and modernization activities in MIS/ SIS
business. The Company has invested an amount of Rs.3594 Millions on capital
expenditure to increase the capacity in various divisions. An amount of Rs.1962
Millions has been spent on capital expenditure for the MIS/SIS division by
increasing the capacity of 53,060 MTPA. Rs.321 Millions has been spent on
capital expenditure for the piping segment adding in excess of 33,645 MTPA in
the segment. Rs.647Millions has been spent on capital expenditure for the Agro
processed division. An amount of Rs.15 Millions has been spent on capital
expenditure for Tissue Culture segment to increase the capacity by 5 Millions
plantlets. The Company has spent an amount of Rs.141 Millions in Green
Energy/Solar business while it has started a Solar PV manufacturing facility at
an initial cost of Rs.122 Millions during the year . An amount of Rs.385
Millions was spent towards strengthening the common corporate service
infrastructure.
Significant
Awards, Accolades their recognitions
The Company has
received several awards on International and National, State level during the
year , however significant amongst them are:
- IFC’s (part of World Bank Group) Client
Leadership Award for “pioneering work to promote sustainable agriculture
and raise farmers’ incomes through the efficient use ofwater, energy and
fertilisers”
- The Financial Times London and Arcelor
Mittal Boldness in Business Award in Environment category for 2010 for
“For pioneering drip irrigation in India, it worked tirelessly and drove
the growth of this simple yet highly effective technology. It multiplied
yields at considerably lower water usage. Wastelands could now be
cultivated and greened. More Crop Per Drop made real difference to environment.
Jain Irrigation went beyond offsetting its carbon footprint and achieved
sustainability on a more fundamental level”.
- Recently, the Company was granted US
Patent 7963569 titled ‘locking pipe joint and method of making the same’.
The operations of
subsidiaries
The
MANAGEMENT
DISCUSSION AND ANALYSIS:
Overview of Business
The Company (JISL)
is leading agri-business Company, operating in diverse but integrated segments
of the agribusiness value chain. It is the second largest micro irrigation Company
globally and is largest manufacturer of irrigation systems in
Overseas Holding Companies
a) JISL Overseas
Limited,
b) Jain International
Trading B.V., Netherland is a wholly owned subsidiary of the Company and is
incorporated in 2010 under the laws of Netherland. The said Company had a loss
of US$ 388,047 for the year ended 31st March, 2011.
c) Jain Overseas
B.V., Netherland is a wholly owned subsidiary of the JISL Overseas Limited,
d) Jain (
e) JISL Global SA,
f) JISL Systems SA,
g) Jain Irrigation
Holdings Inc.
Overseas Marketing
Companies
a) Jain (
b) Jain (Europe)
Limited,
Operating
Subsidiary Companies
a) Jain Irrigation
Inc.,
b) Cascade Specialities
Inc.
c) NaanDan Jain
Irrigation C.S. Limited
d) The Machines SA,
e) Jain Sulama
Sistemleri San. Tic. A.S., Turkey, is a
f) SQF 2009
Limited,
g) Eurodrip S.A.
Competitive
Strengths
They believe that the following are their principal competitive strengths :
Strong brand and leadership position in their businesses in
They are one of
Total solution
provider across the agricultural value chain.
They have utilised
their agriculture expertise and relationships to participate across the
agricultural value chain and diversify their revenue. In addition to their
micro and sprinkler irrigation systems, plastic piping and solar pumps which
are used in irrigation, they also supply bio-tech tissue cultures which help
farmers reduce growing time and create higher crop yields. In addition, they
work with their customers on a turnkey basis providing engineering, soil and
water analysis, water resource estimation, crop planning, irrigation and
fertigation scheduling, marketing assistance and other agronomical and
technical support and training. They purchase onions, tomatoes and other
vegetables for vegetable dehydration from their contract farmers and others and
are a major consumer of mangoes for their fruit processing operations. They believe
that being involved across the value chain leverages their knowledge,
relationships, brand name and strong distribution network and provides total
solutions for farmers.
Diverse revenue
streams
They have
production and processing facilities across
Experienced management and large pool of agriculture professionals.
Their senior
management team has deep experience in the industries in which they operate.
They believe that the experience of their management team in the agriculture
sector and international markets will help us increase their penetration
internationally and expand the range of their product offerings. Their
management team also has long-standing relationships with many of their major
customers, distributors/dealers and suppliers Further, they have one of the
largest pools of agricultural scientists, technicians and engineers in the
private sector in
Flexible and scalable business model.
existing
production facilities and distribution network will help us meet increased
demand for their products. Their presence in
Wide dealer and
distribution network
They have over
2,500 dealers in
(6) Overview of Segments
A) High-Tech Agri Input Products
The segment
comprises of Micro and Sprinkler irrigation systems, PVC Pipes, biotech tissue
culture and other agri inputs. The segment has grown at almost 26.7% over the
previous year at Rs.22859.800 million. The main growth engine was the MIS/SIS
business at a robust 31.6% growth. PVC pipes also grew at reasonable growth
rate of 10.4%. The segment profit has grown by an impressive 40.1% over the
earlier year’s level, while the capital employed grew at a little over 30%
reflecting the creation of additional capacities during the year.
a) Micro and sprinkler irrigation
i) Industry
The industry is
broadly divided into the organized and unorganized segments in the country. The
Company is the largest player in the organized sector. In view of the
involvement of a large number of components in a system, all of which are not
available with a single manufacturer, it is difficult to hazard a guess about
the exact size of the industry as most of the figures are derived on the basis
of information available from different sources. While the Company controls 55%
of the Micro Irrigation business in the country, it has a market share of 35%
in the Sprinkler irrigation business in the country. The current estimate of
industry size is Rs.30.000 bn. and it is growing at a fast pace. Currently only
5 million Ha (7% coverage) of the possible 69 million Ha area is covered under
the micro and sprinkler irrigation in the country. However, as per Government
task force 17million Ha of land can be easily brought under micro irrigation
coverage in the country by 2012, while by 2030 the extent of MIS/SIS coverage
may reach 69.5 Millions Ha. The prospect for global growth of the MIS industry
is strong. Experts estimate that by 2025 the majority of developed countries
will confront issues resulting from a scarce water supply, with all major
economies switching to MIS to mitigate the disruption that such a shortage
could cause. Although MIS’s popularity continues to grow, high establishment
costs have hindered its wider circulation. Despite this, over the last 20
years, there has been a six-fold increase in the area under micro irrigation.
North America and Europe have the highest rates of utilization, with the
ii) Performance
The business
contributes a little over 51% of the Company’s turnover. The division has been
growing at a CAGR of 46% in last five years on the back of projects in the
States of Andhra Pradesh, Gujarat, Tamil Nadu and consistent growth in
iii)
Almost 50% of the
arable land in the country is still rain fed. The Government (Central
and State) provide 50% capital subsidy for promoting the use of Micro
Irrigation by farmers While targeting an agriculture growth of 4% per annum the
government had also placed higher targets for farm credit and agriculture
investments at 2% plus of the GDP for the XII plan period. Very recently in
2010 the Cabinet Committee of Economic Affairs approved the “National Mission
on Micro Irrigation” (NMMI) during the Eleventh Plan period. This again
demonstrates the sustained focus of the government on pushing the
micro-irrigation as a tool to conserve the water and address the issue of food
security. The Union Budget reflected an overall increase in thrust towards agriculture.
During the year,
the 22nd manufacturing plant was inaugurated at
The Company has
continued its training and extension activities throughout the country. Thus, during
the year the extension activities were carried out in over 165 districts in the
country covering over 164,000 farmers in 15 states. All in all, outlook for
this industry in very positive and opportunity is immense.
PVC Piping
i) Industry Indian Scenario
Jain Irrigation,
with a 15% share, is one of the three (3) major players in the organized
market. Rest of the industry, being small and medium scale in nature, is
unorganized, fragmented and scattered near the user belts in the country.
Increased micro irrigation spends, higher allocation towards rural water
infrastructure for potable water, push for urban infrastructure by government
agencies and Command Area Development Programme will improve the demand
situation for the industry.
ii) Performance
During the FY 2011,
this business contributed 18.1% revenue for the Company. The business has grown
at a steady 10.4 % in revenues over last year. The business added 35,145 MT of
capacity during the year, while the Fixed Assets addition was to the tune of
Rs.196.000 million.
iii)
While the expansion
of capacity undertaken last fiscal year is complete, in view of increased
budgetary allocation from government, demand is expected to continue to
increase. While the government infrastructure spends are increasing all the
time, the government programmes continued for safe drinking water, urban and
rural sanitation, rain-water harvesting and integrated watershed management
programme etc. are expected to generate substantial demand for piping products
in the coming years. The Company is considering establishing two more
production centres in the north part of country in near future. A large part of
the Urban Infrastructure projects in the current five year plan is towards
irrigation, drinking water supply and sanitation.
Biotech Tissue Culture
i) Industry :
The industry is broadly divided into two segments-
1) Fruits and vegetables
2) Leafy Plants and flowering Ornamental Plants.
The industry is not organized although some big names did start forays
in this industry in the mid 1990’s. Most of the players are engaged in tissue
culture for cut flower exports, where the model of business is quite different.
The Company started with banana as the main crop for tissue culture and the
efforts have really paid off. The industry is still growing at an estimated 25%
per annum.
ii) Performance
The sales in
business crossed Rs.270.0 million during the year, reflecting a 20.3% growth
over the previous year. The quantity increased to 22.5 million plantlets
Keeping quality of plants as the top priority Company had implemented four
stage disease testing program. Unit has also maintained various certification
standards for commercial tissue culture laboratories.
iii)
The outlook continues to be excellent and demand shows improved off take
in the coming season. Now, many State Governments are evincing keen interest in
promoting tissue culture. The Company has opportunity to diversify the business
and produce fruit and ornamental plants and other fruit plants. The Company has
also started production of tissue cultured pomegranate plants. Research and development
is on to create Citrus plants. There is also an export potential to other Asian
countries which can be tapped.
Industrial Products
The segment
business includes the varied business lines like PVC Sheets, Polycarbonate Sheets,
PE pipes for industrial applications, Fruit processing, and onion and vegetable
dehydration. Business in this segment has grown at 13.7% over the earlier
year’s level at Rs.10449.21 million. The major growth came from solar business
at 112% growth in revenue terms on a small base.
a) PE Piping
i) Industry
The applications of PE pipes are growing at a fast pace and yet new
applications are being developed for the product. In applications like Sewage
and Effluent disposal the tougher environmental laws and stricter application
of the same by the Government departments, the replacement of cement/metal
pipes by PE pipes is becoming very relevant. Such possibilities are huge;
especially since the larger diameter PE pipes are now indigenously available within
the country itself. The Company’s presence in gas and cable duct segments of
the PE pipe business is commanding and hence the overall market share is in
excess of 30%. The Company is operating in all segments of the industry like
cable duct, sprinklers, gas distribution, water conveyance, house service
connection, Sewage conveyance, Effluent disposal, sand stowing, dust
suppression etc.
ii) Performance
This business has
grown in FY 2011 by 5.8% and volumes were grew by 15.4%However, with all user
industries like telecom, gas, water and sewerage having good plans for growth
and capital expenditure, the future is bright for this business.
iii)
The Company has successfully continued to get large supply contracts
with multinational companies for supply all over the world as a preferred
supplier with very encouraging revenues. The massive infrastructure projects
undertaken under the Bharat Nirman yojana, increased investments by
telecommunication industry and plans for piped gas in cities, continue to be
the potential demand drivers for the industry. All the Gas Distribution
companies are continuing their growth plans as newer cities are being added
every year. The telecom sector in
The demand for next 18 months is expected to be around 275,000 kms of
duct pipes. In water transmission and distribution business there are around
200 firms registered with BIS, but the national players are only 3 and Jain
Irrigation is the only player to manufacture pipes up to 1600+ mm dia. Jain
Irrigation now has developed the capability to provide a complete solution to
Water Management, Waste-water Treatment and judicious use of treated water.
Onion and vegetable dehydration
i) Industry
Dehydrated Onion
is the largest used general food ingredients. This industry is dominated by
ii) Performance
During the year,
product sale remained approximately same in terms of value and quantity. The
Company achieved this sales growth under the adverse scenario of bad onion
crop, increased raw material cost, volatile rupee, etc.
In order to maintain its leadership position the Company has upgraded
and maintained its quality management system to ISO 22000 apart from other
certifications like BRC, GMA SAFE, Kosher, Halal etc. Company's Indian
operations have also been certified under ISO 14001 and OSHAS 18001 for
Environment and Occupational Health and Safety.
iii)
Outlook for vegetable dehydration industry in general and dehydrated
onion industry in particular looks very good. Large multinational companies
with very popular household brands are looking towards consolidating the number
of suppliers and trying to align with select few suppliers who can provide
better traceability and sustainability. This puts the Company in a very good
position due to its backward linkages, relationship with farmers, contract
farming programs, ability to supply from two different origins with different
seasons and product quality attributes and Company’s sustainability in general.
Worldwide Onion dehydration industry is estimated to be around 180,000
MTPA. The industry is growing globally at 3-5% per annum. The Company now has
capacity to produce approximately 26,000 MT per annum of finished products between
its three plants in two countries. This makes the Company the third largest
dehydrated onion producer in the world. The acquisition of controlling stake in
Cascade Specialities Inc,
Fruit processing
i) Industry
The fruit and vegetable processing industry has a huge potential in
The installed
capacity of
ii) Performance
This division forms an important part of the Company’s approach to
integrated farming model, wherein the Company supplies the farmer with
high-tech agri inputs, and is ready to buy back the surplus output to add value
and offer the same locally and in International markets, thereby completing the
agri value chain. The division clocked yearly revenues of Rs. 3087.000
Millions. during the year. The business grew at 14.8% in value terms. The
division processed 115580 MT of fruits during the year. The division added new
capacities in Aseptic, Frozen and IQF part of the business. Company processed
various different fruits like Mango, Pomegranate, mla, Guava, Banana, Papaya, Tomato, etc in
the year.
The division continues to retain its accreditation under various quality
standards such as ISO 22000, SGF, Kosher etc. The business unit has also
achieved accreditation under ISO 14000 and OSHAS 18000 standards.
With the increased capacity, improved plant utilization and reduction in
raw material transport cost; this division has become cost efficient and a high
quality producer of fruit purees and concentrates.
The Company is a strategic supplier to Coca Cola system worldwide for
supplying Mango Pulp/Puree and concentrates. The Maaza brand of Coca Cola
Company is a brand leader in the fruit beverages category and continues to
clock compounded annual growth rate of more than 30%.
iii)
The fruit and vegetable processing industry is critical to fruit and
vegetable sector. Although the horticulture sector has grown by 10%, only 2% of
the produce is processed, resulting in huge post harvest losses. Fruit and
vegetable processing establishes the vital linkage between agriculture and
industry. In order to sustain the growth in the economy, Govt. has realized the
need to support this vital link and has been providing support to accelerate
growth in the sector. The sector has seen exponential growth with demand for
fruit juices, beverages, convenience foods growing by around 30% yoy.
The demographic profile of the consumers has been changing. With
increase in disposable incomes and standard of living, the consumption pattern
is shifting from basic foods to more healthy, convenience foods resulting in
growing demand for processed food in general and processed fruits and
vegetables in particular.
There is a marked shift in the International markets with emphasis being
laid on wellness products and products having nutritive/therapeutic properties.
There is also a shift from the usual products such as Citrus and Apple to more
exotic products like Mango, Guava, and Pomegranate etc. which are being
increasingly being researched for their wellness aspects.
New markets such as
With opening up of US and Japanese markets for fresh Mango, the taste
profile is witnessing a change, resulting in opening up of these markets for
processed products also.
The demand for tropical fruit purees and concentrates and processed
vegetables is growing rapidly within
With a view to offer products with therapeutic values, the Company is
working on offering products from Amla and Mangosteen in the International
markets.
Company is also working on setting up a processing line for processing
Mosambi, the most widely consumed juice in
PVC Sheets
i) Industry
Major markets for Company’s products are Europe and
In the BMI segment, Lumber the traditional building material was being
replaced by PVC. The basic uses of PVC in BMI was in Trim, used as surrounds
for windows and garage doors, Corner Boards, Soffits and interior applications
such as Wainscoat and Beadboards. The inherent qualities of PVC such as
impervious to water absorbtion; protected against insect attacks and a life
term warranty promulgated the product over traditional Lumber. Further,
availability of good quality wood was a problem as resources were drying up and
cost of processing was escalating.
The market is serviced by 7 manufacturers and some Chinese imports.
The S and G market has been using PVC sheets in manufacturing Sign and
Graphic boards, Point of Purchase displays and large print mediums. This
industry has stayed with PVC for over 3 decades.
This segment is serviced by 5 manufacturers. Some
ii) Performance
This business has
stedy growth rate in FY 2011. It accounted for around 22% of the revenue.
Improved 2nd half helped achieving the same level of revenue at Rs.Rs.1394.000
Million compared to Rs.1143.000 Million in the previous year.
iii)
The economic downturn has resulted into some players exiting the market
and others redefining their basket of offerings. This consolidation in the
industry will benefit both the manufacturer and the end user.
Contingent
Liabilities not provided in respect of:
|
Particulars |
31.03.2011 Rs.
In Millions |
|
Claims not acknowledged as debts in respect of: |
|
|
- Customs and Excise duty |
281.470 |
|
- Other taxes and levies |
73.780 |
|
- Others (Legal) |
52.710 |
|
Guarantees given by the company bankers in the normal course of
business |
1263.650 |
|
Bills discounted with the bank |
454.450 |
|
Export obligations towards duty saved amount under EPCG scheme |
1834.100 |
|
Corporate Guarantee given for repayment of indebtedness of overseas
subsidiaries |
1802.040 |
In respect of (i) above, the company has taken necessary legal steps to protect its position in respect of these claims, which, in its opinion, based on legal advice, are not expected to devolve. It is not possible to make any further determination of the liabilities which may arise or the amounts which may be refundable in respect of these claims.
Fixed
Assets
- Goodwill
- Trademark and
Development
- Computer
Software
- Green/Poly/
Shed Houses
- Plant and
Machinery and Equipments
- Office
Equipments
- Electrical
Installations,
- Furniture,
Fixtures
- Vehicles
- Live Stock
WEBSITE DETAILS
History:
The Beginning of
the Road to Success
The Roots
The journeys began in 1887 when the forefathers left the deserts of
Rajasthan, their home state, in search of water and food and reached Wakod, at
the foothills of the famous
In 1963 selling kerosene in pushcart, the young law graduate, Bhavarlal
Jain, founded the family business in trading. The family partnership with a
meager Rs. 7,000, accumulated savings of three generations, as capital. Soon,
agencies for two wheelers, auto vehicles and automobile accessories were
established in quick succession.
Story of Success
Trading : Inspired by a quote, "Agriculture : a
profession with future" young Jain added dealership of tractors, sprinkler
systems, PVC pipes and other farm equipment. In order to broad base the
agri-business, agencies for farm inputs such as Fertilizers, Seeds, Pesticides
were also added. Sales grew from Rs. 1 million in 1963 to Rs. 110 millions in
1978, a phenomenal increase of 110 times. These formative years helped them
build a unique and lasting enterprise. This was achieved through consistent
high standards of performance and personal behavior on the one hand and a
strong sense of commitment for meeting targeted volumes and for payment of
debts in time, on the other. Dealings with national and international
principals was a contributing factor towards building these attitudes. In time,
they came to be recognized as a reputable, trustworthy and prestigious house.
This background augured well for an entry into industrial ventures.
Refined Papain : They took over a 14 year-old sick Banana Powder
Plant in April 1978 at a high auction price of Rs. 3 million while they only
had Rs. 0.200 million as inevitable surplus. The plant was quickly modified for
the production of Papain from Papaya latex. In December 1978, the founder
traveled to
PVC Pipes : In 1980, manufacturing of PVC Pipes commenced with
a small annual capacity of 300 MT's which was increased to over 35,600 MT's per
annum by 1997, making them the largest single producer of PVC Pipes in the
country. A close-knit dealer distribution network in the rural areas coupled
with continuous automation and up gradation of product facilities and in-house
RandD for maximum capacity utilization has kept them at the forefront. This
further helped them to expand the range to Casing and Screen Piping Systems
thereby continuing to contribute to the growing export volumes.
Micro - Irrigation Systems : Beginning in 1989, they toiled and
struggled to pioneer Water-management through Micro Irrigation in
Food Processing : In 1994 they set-up world class food processing
facilities for dehydration of onion, vegetable and production of fruit purees,
concentrates and pulp. These plants are ISO 9001 and HACCP certified and Meet
International FDA statute requirements. Combining the modern technologies of
the west with the vast, mostly untapped agriculture resources of
Today with over 7000 committed employees strength worldwide, they have
established the Leadership in diverse products like Micro and Sprinkler
Irrigation, Agricultural Inputs, Agro-Processed Products, Plastic Pipes and
Sheets.
Profile:
Each of the products is an outcome of an effort to conserve nature's
precious resources through substitution or value addition. This is the legacy
of a deliberate and conscious endeavor that stems from a deep-rooted concern
for nature.
There is more to Jain Irrigation than irrigation. The Corporation has
multi product industrial profile and manufacturers of Drip and Sprinkler
Irrigation Systems and Components; PVC, Polyethylene (HDPE, MDPE) and
Polypropylene Piping Systems; Plastic Sheets (PVC and PC sheets); Dehydrated
Onions and Vegetables; Processed Fruits; Tissue Culture, Hybrid and Grafted
Plants; Greenhouses, Poly and Shade Houses; Bio-fertilizers; Solar Water
Heating Systems and Solar Photovoltaic Appliances (Solar lighting systems) and
Bio-Energy sources. They render consultancy for complete or partial project
planning and implementation e.g. Watershed or Wasteland and / or Crop Selection
and Rotation.
Business Description
Subject is an
India-based agri-business company. Subject is the manufacturer of irrigation
systems in
PROFILE OF DIRECTORS:
Mr. Bhavarlal H. Jain
Chairman,
B.Com, LLB
Founder of the Jain group of Companies and Chairman of the Company. He
began his business in 1963 by trading in agricultural inputs and equipments. In
1978, he acquired a sick unit which he used to manufacture Papain. In 1980, he
commenced PVC Pipe manufacturing operations. Post 1986, he pioneered the
concept of micro irrigation in
Mr. Anirudha R. Barwe
Director,
M.Sc.(Mathematics)
He has had career in domestic, international banking and Capital Markets
for over 32 years, during which he developed a firm understanding of the
complexities of international markets. He is thoroughly familiar with the
regulatory and business environment in
Mr. Devendra R. Mehta
Director
He was appointed on 26.12.2007. He joined Indian Administrative Service
in 1961 and held important positions in the Govt. of Rajasthan and later in
Govt. of India. He was the Chairman of Securities and Exchange Board of India
(SEBI), an apex regulatory body that deals with the regulation and development
of the capital market in
Mr. Ghanshyam Dass
Director
Bachelor’s degree with Honours in
Economics, Master in Linguistics.
He has had an outstanding career in domestic, international banking and
Capital Markets for over 32 years, during which he developed a firm
understanding of the complexities of international markets. He is thoroughly
familiar with the regulatory and business environment in
Mr. Ramesh C. A. Jain
Director
B.A., LLB
He holds a Bachelor of Arts Degree from the
Ms. Radhika Pereira
Director
B.Sc., LLB, LLM(
LLM(Harvard)
She is a graduate of
Mr. Vasant V. Warty
Director Nominee
SBI B.A., LLB
He was appointed on May 13, 2004 by State Bank of
Mr. Ashok B. Jain
Vice Chairman,
B. Com.
He Joined the management team in 1982 and was in charge of marketing and
extension services in
Mr. Anil B. Jain
Managing Director,
B.Com., LLB
He is Managing Director of the Company since 1992. He joined management
team in 1984 and was in charge of US based marketing operations. He has an
extensive background and experience in Finance, Banking, Mergers and
Acquisitions, Strategic Planning, Restructuring Operations. Export Marketing,
International Business Relations, Collaborations and Joint Ventures.
Mr. Ajit B. Jain
Joint Managing Director,
BE.(Mech.)
Joint Managing Director of the Company since 1994 and is responsible for
the pipe division as well as marketing all plastic products, including drip
irrigation, guidance for extension service and development of new applications
and products. He joined in 1984 and started his training in production and
maintenance in the pipe division. During the period from 1985-1990, he was in
charge of establishing our new pipe production plant at Sendhwa (in the state
of Madhya Pradesh in
Mr. Atul B. Jain
Director - Marketing,
B.Com
He has been appointed as Joint Managing Director of the company
effective September 14, 2011. He is a Commerce Graduate. He joined the
management team in 1992. He was posted in
Mr. R. Swaminathan
Director – Technical,
B.Tech. (Chemical)
He is Chemical Engineer responsible for manufacturing operations in our
Poly-tube, Sprinkler, PVC and PC Sheets and PVC and PE Pipe units. He has 32 years
of experience in operation and maintenance activities of plants handling such
things as Solvent Extraction, Plastics Extrusion and Injection Moulding. He
joined the Jain Group in 1982 and was appointed a full-time Director in 1996.
PRESS RELEASES:
Fixes
Record Date for issue and allotment of DVR Bonus Equity Shares
25 October 2011
Jain Irrigation Systems Limited has informed BSE that November 09, 2011
will be the Record Date for the purpose of issue and allotment of Differential
Voting Right (DVR) Bonus Equity Shares of Rs. 2 each in the ratio of 1 (One)
DVR Bonus Equity Share for every 20 existing Ordinary Equity Shares to those
Shareholders whose name appears in the Register of Members as on the said
Record Date i.e. November 09, 2011.The effective Paid up Capital for
calculation of DVR Bonus Equity Shares shall be 38,58,86,085 Ordinary Equity
Shares of Rs. 2 each (fully paid up). Thus, 1,92,94,304 DVR Bonus Equity Shares
of Rs. 2 each shall be issued by the Company to its eligible Ordinary Shareholders
after November 09, 2011. News @ Jains - Jain Irrigation inks MoU with
International Rice Research Institute (IRRI) for collaborative research and
adaptive field trials on paddy using micro irrigation.
Jain
Irrigation Systems honored with 6 Plex Council awards for exports
04 October 2011
Jain Irrigation Systems (JISL) has been honored with the excellent
performance in exports of different groups of plastic products. The company was
felicitated by President of Plastic Export Promotion Council (Plex Council)
Ashok Goel in a grand ceremony held at Hyatt Regency Hotel in Mumbai with six
awards. JISL, which is a leading company in the agriculture and agriproducts
field, achieved excellent exports award for the year 2009 and 2010 in PVF Foam/
Board sheet, PVC Pipes and Hoses, and Drip Irrigation Department. The number of
Plex awards received by the JISL hav gone up to 78 including the year's four
awards and with this the total awards have now gone up to 160.JISL is engaged
into manufacturing of drip and sprinkler irrigation systems and components. It
manufactures wide range of products such as drip irrigation systems, sprinkler
irrigation systems, valves, water filters, green houses, bio fertilizers, onion
and vegetable dehydration, PVC pipes and fittings, PVC sheets, PC sheets, solar
water heating systems, agricultural and engineering consultancy and many more.
Stronger balance
sheet, NBFC set-up key for Jain Irrigation
22 September 2011
Jain Irrigation Systems Limited and Coca-Cola India Private Limited launched
Unnati, a partnership project with farmers that would enable the adoption of
ultra-high density plantation (UHDP) practice for mango cultivation.
The companies maintain the introduction of UHDP will double the average
mango yields. It's a relatively small development involving an investment
outlay of more than $2 million (around '10 crore today) in the first phase,
which will be shared equally by both the companies.
Jain Irrigation's stock has not reacted materially to this event. In
fact, the stock has fallen by 2.4% to '170 apiece since this announcement,
compared with the 3.6% increase in the Sensex in the same period.
However, larger issues such as balance sheet concerns and the proposed non-banking
financial company (NBFC) have been acting as an overhang on the stock for a
while now. The stock has underperformed the BSE-200 index since the NBFC news
was announced at the end of January.
It's well known that the firm's micro-irrigation systems business
receives some portion of its payments from the government in the form of
subsidy disbursements, which comes with a lag. This has put a lot of pressure
on Jain Irrigation's receivables.
"Based on the consolidated balance sheet, receivable days widened
to 152 in FY11 from 109 in FY10, driving the increase in total working capital
days from 123 to 145," points out an annual report analysis note from
India Infoline Research, released last week. The note adds that the working
capital increase led to higher cash burn, reversing a trend of improving free
cash flow seen since FY08.
Jain Irrigation wishes to set up an NBFC, which would help in easing its
cash flows. The NBFC is expected to be operational towards the end of this
fiscal year. Some analysts are hopeful that the proposed NBFC will bring the
much needed respite for Jain Irrigation.
How things eventually pan out as far as the NBFC is concerned will be
one of the key things to track in the days to come for investors.
Meanwhile, even as the stock has underperformed since the NBFC news, it
has recovered smartly from its lows in June and has appreciated by 25% till
now.
During this time, Jain Irrigation delivered good financial results for
the June quarter. On a year-on-year basis, revenue and operating profit in the
June quarter increased by 31% and 38%, respectively.
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 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 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.49.08 |
|
|
1 |
Rs.78.65 |
|
Euro |
1 |
Rs.67.79 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
62 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.