MIRA INFORM REPORT

Report Date :

10.04.2012

IDENTIFICATION DETAILS

Name :	JAY CHEMICAL INDUSTRIES LIMITED
Registered Office :	Jay House, Near Saffron Building Panchavati, Ellisbridge, Ahmedabad-380006, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	31.03.2000
Com. Reg. No.:	04-037683
Capital Investment / Paid-up Capital :	Rs.143.340 Millions
CIN No.: [Company Identification No.]	U24119GJ2000PLC037683
IEC No.:	0888017031
TAN No.: [Tax Deduction & Collection Account No.]	AHNJ00516F
PAN No.: [Permanent Account No.]	AAACJ7628J
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Dyes Intermediates, Garments, Construction Chemicals, Textile Auxiliary
No. of Employees :	1500 (approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 4000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. General financial position is good. Trade relations are reported as fair. Business is active. Payments are reported to be correct 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.

INFORMATION PARTED BY

Name :	Mr. Murari Nair
Designation :	General Manager
Contact No.:	91-79-26423363
Date :	09.04.2012

LOCATIONS

Registered Office :	Jay House, Near Saffron Building Panchavati, Ellisbridge, Ahmedabad-380006, Gujarat, India
Tel. No.:	91-79-26423363
Fax No.:	91-79-26425763
E-Mail :	daksheshmachhar@jaychemical.co alpeshshah@jaychemical.com nimishvaya@yahoo.com info@jaychemical.com manishitandon@jaychemical.com murarinari@jaychemical.com anshulagarwal@jaychemical.com
Website :	http://www.jaychemical.com
Area :	600 Sq. ft.
Location :	Owned
Factory 1 :	44, GIDC, Odhav, Ahmedabad, Gujarat, India
Tel. No.:	91-79-22873581
Fax No.:	91-79-22872383
Location :	Owned
Factory 2 :	GIDC, Khambhat, Ahmedabad, Gujarat, India
Location :	Owned
Factory 3 :	Located at Vatva, Ahmedabad, Gujarat, India

DIRECTORS

As on 30.09.2011

Name :	Mr. Jayendrabhai Hiralal Kharawala
Designation :	Managing Director
Address :	2, Spring Vally, Mohamadpura Road, B/H Karnavati Club," Bodakdev, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	18.02.1939
Qualification :	Graduate
Date of Appointment :	31.03.2000
Name :	Mr. Greeven Jayendrakumar Kharawala
Designation :	Managing Director
Address :	2, Spring Vally, Mohamadpura Road, B/H Karnavati Club," Bodakdev, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	29.09.1974
Qualification :	B.Sc.
Date of Appointment :	31.03.2000
Name :	Mr. Dakshesh Mohanlal Machhar
Designation :	Whole Time Director
Address :	Block No. 212, Anmol Park, Plot No. 10, Bopal Ahmedabad - 380058, Gujarat, India
Date of Birth/Age :	29.09.1966
Qualification :	B.Com.
Date of Appointment :	30.03.2003
Name :	Mr. Ravi Babulal Kabra
Designation :	Whole Time Director
Address :	83C, Satyagrah Chhavni, Lane No:15, Ahmedabad – 380 015, Gujarat, India
Date of Birth/Age :	12.05.1976
Qualification :	MBA
Date of Appointment :	30.03.2003
Name :	Mr. Bipinbhai Rughnathbhai Patel
Designation :	Whole Time Director
Address :	44, Mithila Society, Opposite Shreyash Foundation, Ambawadi, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	01.03.1945
Date of Appointment :	01.10.2008
Name :	Mr. Kantibhai Hirabhai Patel
Designation :	Director
Address :	26, Mahasukhnagar C H S L-2, Vibhag-1, Jain Derasar, Satellite, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	03.09.1946
Date of Appointment :	26.09.2008
Name :	Mr. Sambhunath Sushilkumar Chakraverty
Designation :	Whole Time Director
Address :	B-71, Venus Appt, B/h Ashima Tower, , Vastrapur, Ahmedabad. Ahmedabad – 380 015, Gujarat, India
Date of Birth/Age :	20.08.1942
Qualification :	Graduate
Date of Appointment :	01.04.2005

KEY EXECUTIVES

Name :	Mr. Anshul Agarwal
Designation :	Company Secretary
Address :	16/B, Indus Park Bungalow, Near Star Bazaar India, Satellite, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	09.09.1984
Date of Appointment :	30.11.2010
Pan No.:	AFLPA0867P
Name :	Mr. Murari Nair
Designation :	General Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Jayendrabhai Hiralal Kharawala	8705530
Greeven Jayendrakumar Kharawala	1503390
Mokshadaben G. Kharawala	50290
Ushaben J. Kharawala	1624760
Jay Infa Trade Private Limited, India	49500
J. H. Kharawala, HUF	1799530
Ravi Kabra	100
G J Kharawala, HUF	600000
Greeva Trading and Investments Private Limited, India	100
Janmejay Trading and Investments Private Limited, India	395
Jayendrakumar Trading and Investments, India	395
Total	14333990

As on 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	0.35
Directors or relatives of directors	99.65
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Dyes Intermediates, Garments, Construction Chemicals, Textile Auxiliary.

Products :

Item Code No:	Production Description
32041650	Reactive Blue
32041650	Reactive Black GL/GR
32041630	Reactive Red ME4BL

Exports :

Countries :

European Countries, Asia, Africa, Middle East, Dubai

Imports :

Products :

Raw Material

Countries :

China, Taiwan, Germany, Japan

Terms :

Selling :

L/C, Credit, CAD, TT, DP

Purchasing :

L/C, Depends

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Installed Capacity	Actual Production [In Qty.]
Dyes	MT	26000	18671
Intermediates	MT	11500	8013
Auxiliary	MT	2000	2541

GENERAL INFORMATION

Suppliers :

· Bipo International

· Mensa Hamburg, Germany

· Tragon Chem International

· Marubeni Asia Private Limited

· Lanxess

· Thai Ambica Chemicals

Customers :

· End Users

· Distributor

· Dealers

· Dye Star

· Arvind Mills

· Hongo

No. of Employees :

1500 (approximately)

Bankers :

· Bank of Baroda, Ashram Road Branch, Vallabh Sadan Bhavan, Opposite Gujarat Chamber of Commercial and Industrial, Ashram Road, Ahmedabad-380006, Gujarat, India

· Export-Import Bank of India, Floor 21, Centre One Building, World Trade Centre Complex, Cuffe Parade, Mumbai-400005, Maharashtra, India

· State Bank of Hyderabad

· Axis Bank

· Dena Bank

· Exim Bank

· Bank of Hyderabad

· Bank of India

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
INR Loan from Schedule Bank
Cash Credit and Export Credit Accounts	476.871	109.540
Term Loan	833.350	451.541
Foreign Currency Loan
Cash Credit and Export Credit Accounts	551.071	680.621
Term Loan [Secured by Hypothecation of Plant and Machinery, Movable Assets, Current Assets, Equitable Mortgage of Land and Building and Personal Guarantee of Directors]	0.000	142.292
Vehicle Loan	12.435	7.215
Total	1873.727	1391.209
Unsecured Loan
Deposit from Agents	27.936	24.498
Total	27.936	24.498

Banking Relations :	--
Auditors :
Name :	Shah and Nagori Chartered Accountants
Address :	T-1, Dhaval Complex, B/H Navarangpura Post Office, Navarangpura, Ahmedabad – 380009, Gujarat, India
Tel. No.:	91-79-26565206/66312129
Pan No.:	AACFS5758B
Subsidiaries :	Solunaris GmbH
Associates:	· Jay Infa Trade Private Limited [U51909GJ1990PTC014227] · Jay Enterprise · Jushika Corporation · Prem Chemical Industries · Ronuk Dyes and Chemical · India Textile Products · Greeva · Jayendrakumar and Company

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
14333990	Equity Shares	Rs.10/- each	Rs.143.340 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		143.340	143.340	71.668
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		875.803	760.346	672.001
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1019.143	903.686	743.669
LOAN FUNDS
1] Secured Loans		1873.727	1391.209	1355.782
2] Unsecured Loans		27.936	24.498	12.744
TOTAL BORROWING		1901.663	1415.707	1368.526
DEFERRED TAX LIABILITIES		152.806	133.068	112.045
TOTAL		3073.612	2452.461	2224.240
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1327.641	1217.585	1126.889
Capital work-in-progress		260.703	45.125	107.194
INVESTMENT		42.048	11.909	10.275
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	957.716	689.969	508.953
	Sundry Debtors	887.642	829.931	759.183
	Cash & Bank Balances	107.676	100.780	42.737
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	334.832	240.445	180.501
Total Current Assets		2287.866	1861.125	1491.374
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	785.023	633.364	432.542
	Other Current Liabilities	12.539	12.447	0.000
	Provisions	50.100	40.912	82.365
Total Current Liabilities		847.662	686.723	514.907
Net Current Assets		1440.204	1174.402	976.467
MISCELLANEOUS EXPENSES		3.016	3.440	3.415
TOTAL		3073.612	2452.461	2224.240

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	3509.185	3188.715	2500.493
		Other Income	1.009	3.870	0.266
		TOTAL (A)	3510.194	3192.585	2500.759
Less	EXPENSES
		Material Cost	1931.664	1735.846	1428.795
		Manufacturing and Other Expenses	898.863	750.133	591.805
		Selling and Distribution Expenses	282.602	236.135	192.746
		Preliminary Expenses W/off	0.424	0.424	0.379
		TOTAL (B)	3113.553	2722.538	2213.725
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		396.641	470.047	287.034
Less	FINANCIAL EXPENSES (D)		126.718	123.151	125.325
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		269.923	346.896	161.709
Less/ Add	DEPRECIATION/ AMORTISATION (F)		99.254	83.996	49.765
	PROFIT BEFORE TAX (E-F) (G)		170.669	262.900	111.944
Less	TAX (H)		55.212	102.885	17.894
	PROFIT AFTER TAX (G-H) (I)		115.457	160.015	94.050
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		701.120	541.105	447.055
	BALANCE CARRIED TO THE B/S		816.577	701.120	541.105
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1765.143	1674.693	1370.870
	TOTAL EARNINGS
	IMPORTS
		Raw Materials	524.719	479.837	449.726
		Capital Goods	38.009	7.002	8.708
	TOTAL IMPORTS		562.728	486.839	458.434
	Earnings Per Share (Rs.)		8.05	11.16	6.56

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.29	5.01	3.76
Net Profit Margin (PBT/Sales)	(%)	4.86	8.24	4.48
Return on Total Assets (PBT/Total Assets}	(%)	4.72	8.54	4.27
Return on Investment (ROI) (PBT/Networth)		0.17	0.29	0.15
Debt Equity Ratio (Total Liability/Networth)		2.70	2.33	2.53
Current Ratio (Current Asset/Current Liability)		2.70	2.71	2.90

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS

Rs. In Millions

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors	785.023	633.364	432.542

THE YEAR IN NUMBERS:

Their relentless efforts to push for growth in spite of tough market conditions have enabled us to stay in the profit street. The company has achieved revenue of Rs.3510.195 Millions as compared to Rs.3192.585 Millions in the previous year, a total increase of Rs.317.610 Millions. The growth achieved in the revenue was set off by high input costs and the PBIDT during the year recorded at Rs.396.642 Millions.

The company registered a Profit before prior period items and Tax of Rs.170.669 Millions for the financial year ending 31st March, 2011.

The Company continues to expand its facilities at its Khambhat Plant which is expected to improve the numbers in the current as well as future years.

SUBSIDIARY:

To capture the promising European market the company established a wholly owned subsidiary Solunaris GmbH in Germany in the previous year. The subsidiary being in its infancy stage has made significant investments towards business set up and market development during the year. Once out of its formative stage, revenue is expected to flow against the various market development efforts and the subsidiary is expected to achieve a steady growth momentum.

FIXED ASSETS:

• Building Factory and Office
• Electric Installation
• Plant and Machinery
• R and D and Laboratory Equipment
• Effluent Plant
• Furniture and Fixtures
• Office Equipments
• Computer
• Vehicle
• Land

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter's background	Yes
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	Yes
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes

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.51.27
UK Pound	1	Rs.81.38
Euro	1	Rs.67.01

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		50

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	-

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.