4565560

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BOARD OF DIRECTORS
(As on 29th June, 2004)
J. K. Jain
Executive Chairman
S. P. Jain
Managing Director
Virendra Jain
K. M. Doongaji
S.H. Junnarkar
D. K. Contractor
Dr. P. P. Shah
S. N. Chaturvedi
Gaurav Jain
V. S. Pandit
Director-Works
COMPANY SECRETARY
D. V. Iyer
AUDITORS
Chaturvedi & Shah
Chartered Accountants
BANKERS
Canara Bank
JA CORP LMTED
19
TH
ANNUAL REPORT 2003 - 2004
REGISTERED OFFICE :
A-3, M.I.D.C. Indl. Area,
Nanded-431 603,
Maharashtra.
MANUFACTURING FACILITIES AT :
1. Plastic Processing Division :
Plot No. A-2/4, Plot No. A-2/8, Plot No. C-2/1
M.I.D.C., Murbad, Dist. Thane, Maharashtra.
Plot No. 444, Masat Village
Plot No. S. N. 103/1/2, Rakholi Village, Silvassa,
(Dadra & Nagar Haveli (U.T.))
Plot No. 481/1-2, Dabhel Village
Daman (U.T.)
140/1/1/1-1-140/1/1/9, Village Khadoli
Silvassa [(Dadra & Nagar Haveli (U.T.)]
2. Sipta Coated Steels Division
Nanded, Maharashtra.
3. Comet Steels Division
Nanded, Maharashtra.
REGISTRARS & TRANSFER AGENT
KARVY COMPUTERSHARE PVT LIMITED
1. KARVY HOUSE
46, Road No. 4, Street No. 1,
Banjara Hills, Hyderabad - 500 034.
Tel. : 040-23312454/23320251/751/752
Fax : 040-23311968
2. 7, Andheri Industrial Estate,
Off Veera Desai Road,
Andheri (West),
Mumbai - 400 053.
Tel. : 022-26730153/0292/0311/0799/0843
Fax : 022-26730152
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NOTICE
NOTICE is hereby given that the Ninteenth Annual General
Meeting of the Members of JAI CORP LIMITED will be held on
Friday, the 10th September, 2004 at 2.00 p.m. at the Registered
Office of the Company at A-3, MIDC Industrial Area,
Nanded 431 603 (Maharashtra) to transact the following
business :
ORDINARY BUSINESS :
1. To receive, consider and adopt the Profit and Loss Account
for the year ended 31st March, 2004 and Balance Sheet as
at that date together with the Directors Report and Auditors
Report thereon.
2. To appoint a Director in place of Shri Virendra Jain who
retires by rotation and being eligible, offers himself for
re-appointment.
3. To appoint a Director in place of Shri S H Junnarkar, who
retires by rotation and being eligible, offers himself for
re-appointment.
4. To appoint a Director in place of Dr. P P Shah who retires
by rotation and being eligible, offers himself for
re-appointment.
5. To appoint Auditors who shall hold office from conclusion
of this Annual General Meeting until the conclusion of the
next Annual General Meeting and to fix their remuneration.
SPECIAL BUSINESS :
6. RESOLVED THAT Shri S N Chaturvedi, who was appointed
by the Board of Directors as an Additional Director of the
Company and who holds office upto the date of Ninteenth
Annual General Meeting, being eligible for appointment and
in respect of whom Notice in writing under Section 257 of
the Companies Act, 1956, has been received by the
Company, be and is hereby appointed as a Director of the
Company.
7. RESOLVED THAT Shri Gaurav Jain, who was appointed
by the Board of Directors as an Additional Director of the
Company and who holds office upto the date of Ninteenth
Annual General Meeting, being eligible for appointment and
in respect of whom Notice in writing under Section 257 of
the Companies Act, 1956, has been received by the
Company, be and is hereby appointed as a Director of the
Company.
By Order of the Board of Directors
Mumbai J. K. JAIN
29th June, 2004 Executive Chairman
NOTES :
1. An Explanatory Statement under Section 173(2) of the
Companies Act, 1956 relating to the Special Business to
be transacted at the meeting is annexed hereto.
2. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE
MEETING IS ENTITLED TO APPOINT A PROXY TO
ATTEND AND VOTE INSTEAD OF HIMSELF AND A
PROXY NEED NOT BE A MEMBER. The i nstrument
appointing a proxy or the Power of Attorney if any under
which it is signed should be deposited at the Registered
Office of the Company not less than 48 hours before the
time of holding the aforesaid meeting.
3. The Register of Members and Share Transfer books will
remain closed from Wednesday, the 1st September, 2004
to Friday, the 10th September, 2004 (both days inclusive).
4. The amount of unclaimed dividend for the financial year
ended 31st March, 1996 has been transferred to the
Investors Education and Protection Fund pursuant to the
provisions of Section 205C of the Companies Act, 1956.
The Members who have not encashed the dividend warrant
(s) for the financial Year ended 31-03-1997 to 31-03-2001
are requested to make their claim to the Registrars and
Transfer Agent, M/s Karvy Computershare Pvt. Ltd. It may
also be noted that once the unpaid dividend is transferred
to the Fund as above, no claim shall lie with the Company
in respect of such amount.
5. The Members who are holding shares in identical order of
names in more than one folio are requested to send the
Company details of such folios together with the share
certificates for consolidating their holding in one folio. The
Share certificate will be returned to the member after making
requisite changes thereon.
6. Non-resident Indian Shareholders are requested to inform
the Company immediately :-
The change in the Residential status on return to India
for permanent settlement.
The particulars of NRE Bank Account maintained in India.
Copy of RBI permission.
7. Consequent upon the introduction of Section 109A of the
Companies Act, 1956, Shareholders are entitled to make
nomination in respect of shares held by them in physical
form. Shareholders desirous of making nominations are
requested to send their requests in Form 2B(which will be
made available on request) to the Registrar and Transfer
Agents, M/s Karvy Computershare Pvt. Limited.
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EXPLANATORY STATEMENT PURSUANT TO SECTION 173(2) OF THE COMPANIES ACT, 1956 :
Item No. 6 :
In order to broad base the Board, Shri S.N.Chaturvedi was
appointed as an Additional Director by the Board of Directors
at their meeting held on 12th March, 2004.
Shri S. N. Chaturvedi is highly qualified professional having
degrees and qualifications of B.Tech (Hons), MBA, FCA. He
has over 20 years experience as a practicing Chartered
Accountant as partner of M/s. Chaturvedi & Company, Chartered
Accountants. He is heading the Mumbai Branch of the Firm.
He is having vast knowledge in the areas of Audit & Taxation,
Project Finance, Corporate Finance, Investment Banking,
Amal gamati on & Mergers, Corporate l aws, Internati onal
Finance, Corporate Advisory Services, International Taxation,
Due Diligence exercises, Valuation of business/companies,
Restructuring & Rehabilitation and Strategic Business Planning.
He is also having varied experience of Audit of Banks, Financial
Institutions, Public Sector Units and large Corporates. He is
also having valuable experience in monitoring/ inspection/
investigation of units/companies at the behest of Financial
Insti tuti ons/Banks, Income Tax authori ti es, Hi gh Courts,
Company Law authorities as well as inspection of Mutual Funds,
Stock Exchange Brokers and Plantation companies on behalf
of SEBI.
He has presented several papers at Seminars on the Capital
markets, Investment Banking, Project Finance, Working Capital
Management and Mutual Funds. He has travelled extensively
abroad in connection with Joint Ventures, Technical and
Financial collaborations.
Shri Chaturvedi is Chairman of Audit Committee of the Board
of Directors of N. R. Agarwal Industries Limited and UTI
Securities Limited . He is also on the Board of Tufropes Private
Limited, Incab Industries Limited, Shree Synthetics Limited,
DCM Shriram Consolidated Limited and Balkrishna Industries
Limited.
In accordance with the provisions of Section 260 of the
Companies Act, 1956, Shri Chaturvedi will hold office upto the
date of this Annual General Meeting. A notice under Section
257 of the Companies Act, 1956 has been received by a Member
signifying his intention to propose Shri S.N.Chaturvedi as
Director of the Company. The Board considers Mr Chaturvedis
association as a Director in the best interest of the Company
and recommend passing of the ordinary resolution. None of
the Directors, except Shri S. N.Chaturvedi are, in any way,
concerned or interested in the resolution.
Item No. 7 :
Shri Gaurav Jain was appointed as an Additional Director by
the Board of Directors at their meeting held on 12th March,
2004.
Shri Gaurav Jain has graduated with dual degrees from The
Wharton School Bachelor of Science in Economics with
specialisation in Finance and School of Engineering and Applied
Science Bachelor of Science in Engineering with Major in
Comput er Sci ence and Engi neeri ng f rom Uni versi t y of
Pennsylvania, USA.
He is on the Board of Cellbion Interactive Private Limited which
is a business process outsourcing (BPO) Company focused in
voice operations. He has set up the Company from base and
recruited a professional team to take management control of
the organisation. He is also on the Board of Pet Fibres Limited
which is engaged in the manufacturing of woven sacks.
As per the provisions of Section 260 of the Companies Act,
1956, Shri Gaurav Jain will hold office upto the date of this
Annual General Meeting. A notice under Section 257 of the
Companies Act, 1956 has been received by a Member signifying
his intention to propose Shri Gaurav Jain as Director of the
Company.
The Board considers Shri Gaurav Jain association as a Director
would be beneficial to the Company and recommend passing
of the ordinary resolution.
Shri Gaurav Jain may be considered interested in the resolution
since it relates to his appointment as Director. Shri J K Jain,
Shi S P Jain and Shri Virendra Jain may be deemed to be
interested in the resolution pertaining to the appointment of Shri
Gaurav Jain, as they are related to each other. Save and except
as above, none of the other Directors is in any way concerned
or interested in the resolution.
Mumbai, J. K. JAIN
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DIRECTORS REPORT
The Directors have pleasure to present the Ninteenth Annual
Report and Accounts for the year ended 31st March, 2004.
FINANCIAL RESULTS
(Rs. In lacs)
31-03-2004 31-03-2003

Sale & Services (Gross) 21,741.86 22,585.62
Less: Excise duty recovered on sale 1,942.23 1,983.23

Net Sales 19,799.63 20,602.39
Operating Profit 4,809.36 3,124.14
Less : Provision for diminution in
Investments 28.14 306.33
Less : Finance Charges 32.43 42.70

Gross Profit 4,748.79 2,775.11
Less : Depreciation 830.26 900.25

Profit Before Tax 3,918.53 1,874.86
Less : Provision for Tax 1,159.31 166.07

Profit after Tax 2,759.22 1,708.79
Balance brought forward from
last year 2,522.77 867.95
Prior period Adjustments (Net) 0.77 18.83
Excess provision for Income Tax
in earlier years 26.91 97.20

Amount available for Appropriations 5,309.67 2,692.77

Appropriations :
General Reserve 275.00 170.00
Surplus carried to Balance Sheet 5,034.67 2,522.77

Total 5,309.67 2,692.77

DIVIDEND :
In order to conserve the resources of the Company the Board
have decided not to recommend any dividend on Equity Shares
of the Company.
OPERATIONS :
During the year under review, the Company was able to maintain
its performance in the Steel Division, inspite of stiff competition
in the international markets. The Company has discountinued
its manufacturing operations at Plastic Processing Unit situated
at Rakholi (Silvassa) from November, 2003 and after the close
of the financial year, at Masat (Silvassa) and Daman.
EXPORT ORIENTED UNIT :
The 100% EOU established by the Company for manufacture
of woven sacks, fabric, etc.at Village Khadoli in Silvassa has
achieved an export Turnover of Rs.12 crores, during the year
under review.
FIXED DEPOSITS :
The Company has not accepted any fixed deposits within the
meaning of Section 58A of the Companies Act, 1956, and the
rules framed thereunder.
LISTING OF EQUITY SHARES :
The Companys equity shares are listed on the following Stock
Exchanges :
The Stock Exchange, Mumbai
The National Stock Exchange of India Limited
The Company has paid the Listing fees to all the above Stock
Exchanges for the period 01-04-2004 to 31-03-2005.
DIRECTORS :
In accordance with the provisions of the Companies Act, 1956
and Companys Articles of Association, Shri Virendra Jain, Shri
S H Junnarkar and Dr. P P Shah, retire by rotation and being
eligible offer themselves for reappointment.
Shri S N Chaturvedi and Shri Gaurav Jain were appointed as
Additional Directors on the Board on 12th March, 2004 and hold
office upto the date of the ensuing Annual General Meeting.
Notice has been received under Section 257 of the Companies
Act, 1956, proposing their candidature to the office of Director
of the Company. The Directors of your Company recommend
their appointment.
DIRECTORS RESPONSIBILITY STATEMENT :
Pursuant to the requirement under Section 217 (2AA) of the
Companies Act, 1956, with respect to Directors Responsibility
Statement, it is hereby confirmed :
(i) that in the preparation of the accounts for the financial year
ended 31st March, 2004, the appl i cabl e accounti ng
standards had been followed along with proper explanation
relating to material departures;
(ii) that the directors had selected such accounting policies and
applied them consistently and made judgements and
estimates that are reasonable and prudent so as to give a
true and fair view of the state of affairs of the Company at
the end of the year and of the profit of the Company for the
year under review :
(iii) That the directors had taken proper and sufficient care for
the mai ntenance of adequate accounti ng records i n
accordance with the provisions of the Companies Act, 1956
for safeguardi ng the assets of the Company and for
preventing and detecting fraud and other irregularities;
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(iv) that the directors had prepared the accounts for the financial
year ended 31st March, 2004 on a going concern basis.
AUDITORS AND AUDITORS REPORT :
M/s Chaturvedi & Shah, Chartered Accountants, Auditors of the
Company holds office until the conclusion of the ensuing Annual
General Meeting. The Company has received a certificate from
them to the effect that their appointment, if made, would be
within the prescribed limits under Section 224(1-B) of the
Companies Act, 1956. The notes to the Accounts referred to in
the Auditors Report are self explanatory and therefore do not
call for any further comments.
DI SCLOSURE OF PARTI CULARS REALTI NG TO
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION
AND FOREIGN EXCHANGE :
Information in accordance with the provisions of Section 217(1) (e)
of the Companies Act, 1956 read with Companies (Disclosures
of Particulars in the Report of Board of Directors) Rules, 1988,
regarding conservation of energy, technology absorption and
foreign exchange earnings and outgo are given in the Annexure
A forming part of this report.
SUBSIDIARY COMPANY :
As required under Section 212 of the Companies Act, 1956 copy
of Balance Sheet and Profit and Loss account and report of
Directors and Auditors in respect of subsidiary Company is
attached for members perusal.
PARTICULARS OF EMPLOYEES :
Information in accordance with the provisions of Section 217(2A)
of the Companies Act, 1956 read with Companies (Particulars
of Employees) Rules, 1975 as amended, the names and other
particulars of the employees are given in the Annexure B forming
part of this report.
INDUSTRIAL RELATIONS :
The relations with the employees continued to be cordial and
satisfactory.
CORPORATE GOVERNANCE :
The Company has complied with the applicable requirements
under Clause 49 of the Listing Agreement with the Stock
Exchange. A separate section on Corporate Governance and a
Certi fi cate from the Audi tors of the Company regardi ng
compliance of conditions of Corporate Governance as stipulated
under Clause 49 of the Listing Agreement with the Stock
Exchanges, forms part of the Annual Report.
ACKNOWLEDGEMENTS :
Your Directors express their grateful appreciation for the
assi st ance and co-operat i on recei ved f rom t he Banks,
Institutions, Government Authorities, Customers, Vendors and
Shareholders during the year under review. Your Directors place
on record their deep sense of appreciation for the devoted
services of the Executives, Staff and Workers of the Company.
Mumbai J. K. JAIN
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ANNEXURE A TO DIRECTORS REPORT
PARTICULARS REQUIRED UNDER THE COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF
DIRECTORS) RULES, 1988
A) CONSERVATION OF ENERGY :
(a) The Company has taken various steps for minimisation of energy
consumption by putting continuous efforts towards optimisation
of operating and processing activities, upgradation of plant
equipments, etc.
(b) Additional investments and proposals if any, being implemented
for reduction of consumption of energy :
The Company is not planning any major additional investments
and proposals in this regard.
(c) Impact of the measures at (a)and (b) above for reduction of
energy consumption and consequent impact on the cost of
production of goods:
Due to various steps taken, the Company has been able to
conserve the energy more effectively.
(d) FORM- A
Form for Disclosure of Particulars with respect to Conservation
of Energy.
Current Year PreviousYear

Ended Ended
31.03.2004 31.03.2003
a) Power and Fuel

Consumption
1. Electricity
(a) Purchased
Units 26,107,862 27,196,874
Total Amount (Rs.) 93,639,602 95,526,503
Average Rate/Unit (Rs.) 3.59 3.51
(b) Own generation through
Diesel Generator
Units 562,484 1,384,394
Unit per ltr. of Diesel Oil 3.23 3.11
Average Rate/Unit (Rs.) 6.23 5.55
2. Others
a) HSD
Quantity (KL) 1513.18 2,038.69
Total Amount (Rs.) 31,800,544.00 33,743,856.00
Average Rate/KL (Rs.) 21,015.73 16,551.71
b) LPG
Qty(KL) 403.24 427.55
Total Amount (Rs.) 8,084,526.00 7,706,457.00
Average Rate ( Rs. Per KL) 20,048.92 18,024.69
Consumption per unit of production :
Year ended 31.03.2004 Year ended 31-03-2003
Product GP/GC CR Coil/ Woven GP/GC CR Coil/ Woven
Coils/ Sheets sacks / Coils/ Sheets Sacks/
Sheets Fabrics / Sheets Fabrics /
Bags Bags

Production (MT) 48,003 46,903 7,240 60,986 59,780 7,578
Electricity 99.61 256.74 1,280.89 87.16 219.62 1,336.48
Others
a) HSD (KL) 0.02 0.01 0.02 0.01 0.04
b) LPG ( KL) 0.01 0.01
B. RESEARCH & DEVELOPMENT (R & D) :
In house Research & Development work is carried out to
develop the new products/improve the existing products
by the Company. No significant expenditure is incurred.
C. TECHNOLOGY ABSORPTI ON, ADAPTATI ON AND
INNOVATION :
The Company had not imported any technology during last
five years from the beginning of the financial year ended
31-03-2004, hence t he requi red i nf ormat i on i s not
applicable to the company.
D FOREIGN EXCHANGE EARNINGS AND OUTGO :
The Company has exported its products during the year
under review and has imported raw materials, store items
and capital items, the details of which are as follows:
(Rs. in lakhs)
1) FOB Value of Exports Rs. 6000.24
2) CIF Value of Import Rs. 127.42
3) Expenditure in Foreign Currency Rs. 61.05
Mumbai J. K. JAIN
ANNEXURE B TO DIRECTORS REPORT

PARTICULARS OF EMPLOYEES PURSUANT TO SECTION 217 (2A) OF THE COMPANIES ACT, 1956 READ WITH COMPANIES (PARTICULARS OF EMPLOYEES) RULES, 1975.
Name Age Designation/ Remuneration Qualification Total Date of Last employment held
(Years) Nature of duties Rs. Experience Employment Designation - period for
years which post held
A) Employed throughout the year and in receipt of remuneration aggregating not less than Rs. 24,00,000/- per year.
J. K. Jain 72 Executive Chairman 26,69,201 Matric 53 01.10.95 Business
S. P. Jain 49 Managing Director 26,72,249 B.Com. 28 01.10.95 Comet Steels Ltd. Managing Director (10 years)
Notes :
1. Remuneration as above includes Salary, Allowance, bonus, ex-gratia, leave travel assistance, reimbursement of medical expenses, Companys contribution to Provident Fund and monetary value
of other perquisites calculated in accordance with provisions of the Income-tax Act, 1961 and rules thereunder.
2. The nature of employment in all cases is contractual
3. No employee mentioned above is related to any director of the Company except Shri J. K. Jain and Shri S. P. Jain, who are rel ated to each other and they are also related to Shri Virendra Jain and
Gaurav Jain, Directors of the Company.
J. K. jain
Mumbai, 29th June, 2004 Executive Chairman
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REPORT ON CORPORATE GOVERNANCE
1. Companys philosophy on code of governance :
The Company strongly believes in fair, efficient and transparent
business operations, proper disclosure of relevant information and
to serve the best interest of all the stakeholders, viz., the employees,
shareholders, customers, the Government and the Society at large.
2. Board of Directors :
The present strength of the Board is ten Directors. The Board
comprises of Executive and Non - Executive Directors.
Three Directors- Chairman , Managing Director and Director- Works
are executive Directors. There are seven Non- executive Directors of
which five Directors are independent Directors. The number of
independent Directors on the Board is in conformity with the
requirement of Clause 49 (I) (A) of the Listing Agreement.
Nine Board Meetings were held during the year ended 31st March,
2004 on 17th June, 2003, 31st July, 2003, 10th September, 2003,
17th October, 2003, 31th October, 2003, 4th December, 2003, 5th
January, 2004, 4th February, 2004, and 12th March, 2004.
Name of the Category of No. of Board No. of Other No. of other Board
Director Directorship Meetings Directorships committees
Attended Held (in Public positions held
Companies)
Shri J.K.Jain Chairman 9 1 NIL
(Executive)
Shri S. P. Jain Managing Director 9 3 1 - Member
(Executive) 1 - Chairman
Shri Virendra Jain Non-executive 7 3 Nil
Shri K. M. Doongaji Non-executive, Independent 9 NIL NIL
Shri S.H. Junnarkar Non-executive, Independent 6 14 8 - Member
Shri D.K. Contractor Non-executive, Independent 8 5 4 - Member
Shri V. S. Pandit Executive, Director Works 3 NIL NIL
Dr. P. P. Shah Non-executive, Independent 4 5 3 - Member
# Shri S N Chaturvedi Non-executive, Independent 1 4 2 - Chairman
# Shri Gaurav Jain Non-executive 1 Nil NIL
# Appointed as Additional Director wef 12th March, 2004
Brief Resume of Directors who are proposed to be appointed/re-
appointed :
Shri S N Chaturvedi :
Shri S.N.Chaturvedi is highly qualified professional having degrees and
qualifications of B.Tech (Hons), MBA, FCA.
He has over 20 years experience as a practicing Chartered Accountant
as partner of M/s. Chaturvedi & Company, Chartered Accountants. He is
heading the Mumbai Branch of the Firm.
He is having vast knowledge in the areas of Audit & Taxation, Project
Finance, Corporate Finance, Investment Banking, Amalgamation &
Mergers, Corporate laws, International Finance, Corporate Advisory
Services, International Taxation, Due Diligence exercises, Valuation of
business/companies, Restructuring & Rehabilitation and Strategic
Business Planning.
He is also having varied experience of Audit of Banks, Financial Institutions,
Public Sector Units and large Corporates. He is also having valuable
experience in monitoring/ inspection/ investigation of units/companies at the
behest of Financial Institutions/Banks, Income Tax authorities, High Courts,
Company Law authorities as well as inspection of Mutual Funds, Stock
Exchange Brokers and Plantation companies on behalf of SEBI.
He is also on the Board of Balksrishna Industries Ltd, DCM Shriram
Consolidated Ltd., N R Agarwal Industries Ltd., and UTI Securities Ltd.
Shri Gaurav Jain :
Shri Gaurav Jain has graduated with dual degrees from The Wharton
School Bachelor of Science in Economics with specialisation in Finance
and School of Engineering and Applied Science Bachelor of Science in
Engineering with major in Computer Science and Engineering from
University of Pennsylvania, USA.
He is on the Board of Cellbion Interactive Private Limited which is a
business process outsourcing (BPO) Company focused in voice
operations. He has set up the company from base and recruited a
professional team to take management control of the organisation. He is
also on the Board of Pet Fibres Limited which is engaged in the
manufacturing of woven sacks.
Shri Virendra Jain :
Shri Virendra.Jain is a Commerce Graduate from Bombay University. He
is associated with the Company since 1986.
He is having more than 18 years experience in manufacturing and is having
overall responsibility of marketing and export functions of HDPE/PP woven
bags and sacks. He has taken major initiatives in development of
Companys Exports in the International markets. He is also on the Board
of Nidhi Polyster Ltd, Pet Fibres Ltd., and Suniti Commercials Ltd.
Shri S H Junnarkar :
Shri S H Junnarkar is a B.Sc. graduate, a Law graduate from the Bombay
University and a Solicitor by profession. Before setting up his independent
practice, he was associated with M/s Kanga & Company, a reputed Law
Firm as a Partner for over 21 years and has specialised in Banking laws,
Corporate laws including Monopolies laws, Exchange Control laws and
Securities Regulations.
None of the Directors were able to attend the 18th Annual General Meeting
held on 26.08.2003, due to the bomb blasts that occured in Mumbai on
25.08.2003.
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REPORT ON CORPORATE GOVERNANCE (Cond.,)
He is also on the Board of various companies like Ambuja Cement India
Ltd., Ambuja Cement Rajasthan Ltd., Excel Crop Care Ltd., ILFS
Infrastructure Development Corporation Ltd., IPCL, Reliance Capital Ltd.,
Reliance Industrial Infrastructure Ltd., Reliance Ind. Inv. & Holdings Ltd.,
Reliance Life Insurance Co. Ltd., Reliance Ports and Terminals Ltd., Sterlite
Industries Ltd., TilakNagar Inds. Ltd., and. Interconnected Stock Exchange
of India Ltd.,
Shri P P Shah :
Dr. P. P. Shah is practising Chartered Accountant having over 32 years of
professional experience in the areas of Financial Consultancy, Corporate
Structeri ng/ Restructeri ng, Management Consul tancy, Forei gn
Collaborations, Business Re-Organisations (Mergers, Acquisitions, De-
Mergers, Slump Sale Etc.) Taxation, Valuation, Property Matter Accounting,
Auditing, Company Law and FEMA (out of which 6 years were in U.S.A.) .
He is also a member of the Institute of Cost and Works Accountants of
India (ICWA) and has also done his Ph. D. in Cost Accounting, University
of Bombay. He is also a Member of Taxation Committee of The Indian
Merchants Chambers.
He is also on the Board of various companies like Adani Exports Ltd.,
Himachal Futuristic Communications Ltd., J. M. Financial & Investment
Consultancy Services Pvt. Ltd., Benchmark Trustee Company Ltd., Claris
Life Sciences Ltd., Bhansali Engineering Polymers Ltd., etc.
3. Audit Committee :
The Company has constituted Audit Committee comprising of three
Nonexecutive Directors viz. Shri K. M. Doongaji as Chairman of the
Committee and Shri D.K. Contractor and Shri Virendra Jain as
members. The majority of the members are independent Directors.
The constitution of Audit Committee also meets with the requirements
under Section 292A of the Companies Act, 1956 and Clause 49 of
the Listing Agreement.
The terms of reference stipulated by the Board to the Audit Committee,
are as contained under Clause 49 of the Listing Agreement, as follows:
a. Oversight of the Companys financial reporting process and the
disclosure of its financial information.
b. Recommending the appointment and approval of external
Auditors, fixation of audit fee and also approval for payment for
any other service.
c. Reviewing with management the annual financial statements
before submission to the Board, focussing primarily on (i) any
changes in accounting policies and practices, (ii) major
accounti ng entri es based on exerci se of j udgement by
management, (iii) qualifications in draft audit report, (iv) significant
adj ustments ari si ng out of audi t, (v) the goi ng concern
assumption, (vi) Compliance with accounting standards, (vii)
compliance with Stock Exchange and legal requirements
concerning financial statements and (viii) any related party
transactions of the company of material nature, with promoters
or the management , their subsidiaries or relatives etc. that may
have potential conflict with the interests of Company at large.
d. Reviewing with the management, external and internal auditors,
the adequacy of internal control systems.
e. Reviewing the adequacy of internal audit functions.
f. Discussion with internal auditors any significant findings and
follow up there on.
g. Reviewing the findings of any internal investigations by the
internal auditors into matters where there is suspected fraud or
irregularity or failure of internal control systems of a material
nature and reporting the matter to the board.
h. Discussion with external auditors before the audit commences
nature and scope of audit as well as have post-audit discussion
to ascertain any area of concern.
i. Reviewing the Companys financial and risk management
policies.
j. To look into the reasons for substantial defaults in the payment
to the depositors, debenture holders, shareholders ( in case of
non payment of declared dividend) and creditors.
The Audit Committee met three times during the year 2003-2004,
on 17th June, 2003, 31st October, 2003 and 4th February, 2004.
Shri K.M. Doongaji and Shri D. K. Contractor were present for
three meetings and Shri Virendra Jain was present for two
meetings.
Shri K M Doongaji, Chairman of the Audit Committee was not
able to attend the 18th Annual General Meeting held on
26.08.2003, due to the bomb blasts that occured in Mumbai on
25.08.2003.
4. Remuneration Committee & details of remuneration to Directors:
The Company has not constituted a remuneration committee and
presently, there are three whole time Directors and the remuneration
paid to them are subject to the limits laid down under Sections 198
and 309 and Schedule XIII to the Companies Act, 1956. The
remuneration consists of Salary, Companys contribution to Provident
Fund and Superannuation Fund, and other perquisites and allowances
in accordance with the rules of the Company, applicable from time to
time.
The Whole Time Directors are not paid any sitting fees for attending
the Board/ Committee meetings. The Non executive Directors are
paid sitting fees @ Rs. 2000/- per meeting and out of pocket expenses
to attend the meetings. The sitting fees has been increased from
Rs.2000/- to Rs.5,000/- wef 17th April, 2004.
The details of remuneration paid to the Directors (including perquisites
and allowances) for the year ended 31st March, 2004 are as under :
Name of Sitting Salary Perquisites Total
Director Fees
Shri J. K. Jain NIL 24,00,000 2,69,201 26,69,201
Shri S. P. Jain NIL 24,00,000 2,87,749 26,87,749
Shri Virendra Jain 18,000 NIL NIL 18,000
Shri K. M. Doongaji 24,000 NIL NIL 24,000
Shri S. H.Junnarkar 12,000 NIL NIL 12,000
Shri D. K.Contractor 22,000 NIL NIL 22,000
Shri V. S.Pandit NIL 8,74,240 15000 8,89,240
Dr. P. P.Shah 8,000 NIL NIL 8,000
Shri S. N. Chaturvedi 2,000 NIL NIL 2,000
Shri Gaurav Jain 2,000 NIL NIL 2,000
The Company has paid Rs. 35,15,200/- as professional Charges
during the period under review to M/s Pravin P Shah & Associates,
Chartered Accountants and M/s PPS & Associates, Chartered
Accountants, firms in which Dr. Pravin. P. Shah, is a partner.
9
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5. Share Transfer and Investors Grievances Redressal Committee
The Company has delegated the powers to approve the transfer of
shares to the Executive Committee consisting of Shri Virendra Jain,
a non-executive director- Chairman and Shri S. P. Jain. The Share
Transfer committee has met 29 times during the year.
Name and designation of Compliance Officer :
Shri D V Iyer, Company Secretary
1038 Shareholders complaints were received during the year ended
31-03-2004 and were resolved to the satisfaction of shareholders
No requests were pending for transfer and/or dematerialisation for
approval as on 31st March, 2004.
6. General Body meetings
Location and time, where last three Annual General meeting held :
LOCATION DATE & TIME
18th Annual Registered Office at 26th August, 2003
General Meeting A-3, MIDC Industrial at 2 p.m.
Area, Nanded - 431 603.
Maharashtra
17th Annual ..........do............ 30th September, 2002
General Meeting at 2 p.m.
16th Annual ..............do........... 26th September, 2001
General Meeting at 2 p.m.
No resolution requiring Postal Ballot as required by the Companies
(Passing of the Resolution by Postal Ballot) Rules, 2004/Clause 49
of the Listing Agreement has been placed for Shareholders approval
at this Annual General Meeting.
7. Disclosures :
Materially significant related party transactions i.e. transactions of
the Company of material nature with its promoters, the directors or
the management, the subsidiaries or relatives etc. that may have
potential conflict with the interests of the Company at large.
None of the transactions with any of the related parties were in conflict
with the interest of the Company.
Non- compliance by the Company, penalties, strictures imposed on
the Company by Stock Exchanges, or SEBI or any statutory authority,
on any matter related to capital markets, during the last three years.
The National Stock Exchange (NSE) had suspended trading in the
Companys shares from April 2003 to mid-August 2003 due to non-
compliance of some clauses of the listing agreement, the suspension
of which was subsequently revoked by NSE on complying the same.
8. Means of Communication :
At present, half yearly results is not sent to household of each
shareholder.
The quarterly (Unaudited) results are normally published in Free Press
Journal and Navshakti.
The Company does not have any website, where results of the
Company are displayed. The Company has not made presentation
made to institutional investors or to the analysts.
Management Discussion & Analysis Report is a part of the Annual
Report.
9. General Shareholder Information :
AGM : Date, Time and Venue
19th Annual General meeting, 10th September, 2004 at 2.00 P.M. at
registered office of the Company - A-3, MIDC Industrial Area, Nanded
431603, Maharashtra
Financial Calendar : April - March
Unaudited results for the quarter ending 30th June, 2004 : End
July, 2004
Unaudited results for the quarter ending 30th Sept., 2004 : End
Oct., 2004
Unaudited results for the quarter ending 31st Dec. 2004 : End
Jan., 2005
Audited results for the year ending 31st March,2005 : End June,
2005
Dates of Book Closure : 1st September, 2004 to 10th September, 2004
Dividend Payment Date : Not Applicable as no dividend is recommended.
The Companys shares are listed on the following Stock Exchanges :
The Stock Exchange, Mumbai National Stock Exchange of India Ltd.
Phiroze Jeejeebhoy Towers, Exchange Plaza, 5 th Floor, Plot No. C/1,
Dalal Street, G Block, Bandra- Kurla Complex,
Mumbai 400 001. Bandra (East), Mumbai 400 051.
Annual Listing Fees as prescribed has been paid to the above stock
exchanges for the financial year 2003-04.
Stock Code -
Stock Exchange Mumbai (BSE) : 512237
Demat ISIN for NSDL and CDSL : INE070D01019
The Equity shares of the Company has been voluntarily delisted from the
Ahmedabad Stock Exchange wef. 8th December, 2003, as approved by the
members at the 18th Annual General Meeting held on 26th August, 2003.
Registrars and Transfer Agents :
Karvy Computershare Pvt. Limited
Karvy House, 46, Avenue 4, Street No. 1,
Banjara Hills, Hyderabad- 500 034.
Tel. Nos. 040 2331 2454/2332 0751/52
Fax : 040-2331 1968/2332 3049
Share Transfer System :
Presently, the share transfers in physical form are registered and returned
within the stipulated period of 10 to 15 days from the receipt, if the
documents are clear in all respects.
Dematerialisation of shares :
The Equi ty Shares of your company are traded i n compul sory
dematerialised form by all the investors w.e.f. 9th March, 2001.
The Company has entered into agreements with both the depositories
viz, National Securities Depository Ltd.(NSDL) and Central Depository
Services (India) Ltd (CDSL) , enabling the investors to hold shares of the
Company in electronic form through the depository of their choice.
As on 31st March, 2004, the number of dematerialised shares was 8390359
which represents 97.21% of the total paid up capital.
10
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Outstanding GDRs/ADRs/Warrants or any Convertible Instruments,
conversion date and likely impact on equity:
Not Applicable as the company has not issued such instruments.
Plant Locations :
Steel Division: Nanded, Maharashtra
Plastic Processing Division : Murbad, Maharashtra, Masat, Rakholi,
Silvassa ( Dadra & Nagar Haveli (U.T.), Daman (U.T.), Khadoli, ( Dadra &
Nagar Haveli (U.T.)
Address for correspondence:
Shareholders correspondence should be addressed to the Registrar and
Share Transfer Agent of the Company at the address mentioned above.
Market Price Data during each month in last financial year
NSE BSE
Month High Low Month High Low
(Rs.) (Rs.) (Rs.) (Rs.
April,2003 April,2003 35.95 29.00
May, 2003 May, 2003 44.00 32.60
June,2003 June,2003 53.50 39.40
July, 2003 July, 2003 69.40 41.50
August, 2003 99.00 77.90 August, 2003 99.00 52.05
September, 2003 86.75 66.10 September, 2003 85.00 66.00
October, 2003 82.00 66.25 October, 2003 82.60 66.00
November, 2003 88.95 71.05 November, 2003 90.00 71.50
December, 2003 174.25 79.00 December, 2003 173.65 83.00
January, 2004 163.90 101.00 January, 2004 161.80 103.90
February, 2004 106.00 82.00 February, 2004 106.80 83.00
March, 2004 98.75 75.50 March, 2004 96.00 78.65
Distribution of shareholding as on 31st March, 2004
SR. CATEGORY NO. OF % OF AMOUNT % OF
NO. FROM - TO HOLDERS HOLDERS AMOUNT
1 1- 5000 7989 96.78 5807810 6.73%
2 5001-10000 115 1.39 891680 1.03%
3 10001-20000 66 0.80 912980 1.06%
4 20001-30000 21 0.25 489660 0.57%
5 30001-40000 7 0.08 241420 0.28%
6 40001-50000 6 0.07 262400 0.30%
7 50001-100000 9 0.11 603650 0.70%
8 100001 & above 42 0.51 77104400 89.33%
TOTAL 8255 100.00 86314000 100.00%
Shareholding pattern as on 31-03-2004
Sr. Description No. of Shares % of
No. share Equity
Holders
1 Promoters(including
Directors, their relatives ) 31 7567363 87.67
2 Mutual Funds 9 15034 0.17
3 Financial Institutions and Banks 6 3050 0.04
4 Bodies Corporate 179 82311 0.95
5 NRI 7 515 0.01
6 Resident Individuals 8021 961191 11.14
7 NSDL Transit 2 2010 0.02
TOTAL 8255 8631400 100.00
Dividend Payment Date : Not applicable as no dividend is recommended.
11
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MANAGEMENT DISCUSSION & ANALYSIS (MD &A)
1. Industry Structure and developments
The economy has shown some signs of improvement but towards
the end of 2003-04 due to political uncertainties, economy has slowed
down. It will take longer time for things to settle down and streamline.
STEEL DIVISION
Your Company is one of the leading players in Indian GP/GC steel
market. There are around seven large companies in the organized
sector which together accounts for about 90 % of the total domestic
and Export sales.
During the year, the Steel Division of the Company has achieved an
exports of Rs. 4784.28 lakhs as compared to Rs. 6900.34 lakhs for
the previous year. The Company has achieved production of 48003
M.T. of GP/GC as compared to last years 60986 M.T. The total sales
were 46385 M.T. as compared to last years 59952 M.T.
PLASTIC PROCESSING DIVISION
Your Company is one of the leading manufacturer of small woven
sacks and is a market leader in manufacturing FIBC - Jumbo bags.
There are other 23 major players in the organized sector for FIBC
Jumbo bags and large number of big and small units for manufacture
of small woven sacks operating in organized and unorganized sector.
Your Company is fully equipped to cater to the growing export
market in a big way as the Companys 100 % EOU has started
commercial production last year. During the year under review,
the company has achieved production of 7239 M.T. as compared
to last years 7578 M.T.
2. Opportunities and threats
The exports to various developing countries like China seems to be
a major opportunity for Steel Industry. However the problems of
volatility in the raw material prices, over capacity, Uncertainty
prevailing over delay in Monsoon and International Markets represent
major threats to the Industry.
The expansion of the International Markets for niche products like
FIBC- Jumbo bags & Woven Fabrics represents the new opportunity
for the Plastic Processing Division. The Company looks at Exports
as a major thrust area and intends to focus on Exports as the mainstay
of business.
The major threat the company faces is from small manufacturers
operating in semi organised sector which results in unhealthy
competition as they are exempt from majority of govt. levies and
regulations. There is significant price pressure due to such
competition.
3. Segment-wise or product-wise performance
The Company has two main segments- Steel and Plastic Processing.
The Steel Division of the Company is engaged in manufacturing of
GP/GC Coils/Sheets at its plant located at Nanded. During the year
under review, the Steel Division has achieved a turnover of Rs.153.30
Crores as compared to Rs.159.78 crores during the last year.
The Plastic Processing Division is engaged in manufacturing of woven
sacks and Fabrics of mainly Polypropylene(PP),High Density
Polyethylene (HDPE) and Low Density Polyethylene (LDPE) at units
located at Murbad in Maharashtra, and Khadoli (Dadra & Nagar Haveli
U. T.) The Plastic Processing Division has achieved a turnover of Rs.
64.12 crores as compared to Rs. 66.08 crores for the last year. The
Company has discountinued its manufacturing operations at Plastic
Processing Unit situated at Rakholi (Silvassa) from November, 2003
and after the close of the financial year at Masat (Silvassa) and
Daman.
4. Outlook
During the year under review there was a substantial increase in the
international prices of HR and CR Coils, the key raw materials for
making GP/GC Coils/Sheets. The Company was in a position to pass
on the increased costs to some extent to the customers. However,
this increase, coupled with prevailing uncertainties resulted in reduced
demand for GP/GC Coils Sheets in the International Market towards
the end of the year. Uncertainties prevailing for the coming monsoon
can also effect the demand for GP/GC Coils sheets in India. The raw
material prices are likely to be volatile for some time, as a result of
uncertainties as mentioned above in the International market. This
will have a significant impact on the prices in the domestic market. In
view of the above factors, the medium term outlook for GP/GC Coils,
Sheets is cautiously optimistic.
In Plastic Processing Division, the Companys outlook is optimistic
about the expansion of its international market as its 100 % EOU
has started commercial production last year and is fully equipped to
cater the International markets. The Company is continuously taking
steps in improving its competitive strengths in order to maintain its
lead over competitors and improve its margins and profitability.
However, unprecedented volatility and/or increase in key raw material
prices can adversely affect the performance of the Company.
5. Risks and concerns
The Company is exposed to the normal industry risk factors of
competition, economic cycle, raw material availability, uncertainties
in the International and Domestic Markets and credit risk. The
company manages these risks by maintaining a conservative financial
profile and by following prudent business and risk management
practices.
6. Internal Control systems and their adequacy
The Company has a proper and adequate system of internal controls
to ensure that all activities are monitored and controlled against any
unauthorised use or disposition of assets and that transactions are
authorised, recorded and reported correctly.
The Company ensures adherence to all internal control policies and
procedures as well as compliance with all regulatory guidelines.
The audit committee of the Board of Directors reviews the adequacy
of internal Controls.
7. Financial performance with respect to operational performance.
The gross turnover of the Company was Rs.217.41 crores as
compared to Rs. 225.86 for the previous year and the Profit before
tax was Rs.39.18 crores as compared to Rs. 18.75 crores for the last
year. This was mainly due to export incentives of previous years which
were received during the current year.
8. Human Resources and Industrial Relations.
The relations with the employees at all units continued to be cordial
and satisfactory.The total number of employees as on 31st March,
2004 were around 800.
9. Forward - Looking Statements
This reports contains forward-looking statements that involve risks
and uncertainties. When used in this discussion, the words like plans,
expects, anticipates, believes, intends, estimates, or other similar
expressions as they relate to the Company or its business are
intended to identify such forward -looking statements.
Forward looking statements are based on certain assumptions and
expectations of future events. The Companys actual results,
performance or achievements could differ materially from those
expressed or implied in such forward -looking statements. The
Company undertakes no obligation or responsibility to publicly amend,
update, modify or revise, any forward -looking statements, on the
basi s of any new i nformati on, Future events, subsequent
developments or otherwise.
12
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AUDITORS CERTIFICATE
Auditors certificate to the members of Jai Corp Limited on Compliance of the conditions of corporate governance for the
year ended 31st March 2004, under clause 49 of the listing agreement with stock exchanges :
We have examined the compliance of conditions of Corporate Governance by Jai Corp Limited, for the year ended March 31st,
2004, as stipulated in Clause 49 of Listing Agreement of the said Company with the Stock Exchange(s).
The compliance of conditions of Corporate Governance is responsibility of the management. Our examination was limited to the
review of the procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of
the corporate governance. It is neither an audit nor expression of opinion on the financial statement of the Company.
In our opinion and to the best of our information and according to the explanations given to us and the representation made by the
directors and the management, we certify that the company has, complied in all material respects with the conditions of corporate
governance as stipulated in clause 49, save and except that the Chairman of the Audit Committee could not attend the 18th
Annual General Meeting in view of the reason explained in the report on Corporate Governance.
As required by the guidance note on certification of corporate governance issued by the Institute of Chartered Accountants of
India, We state that, the Registrar & Transfer Agent of the Company have certified that, as on 31st March, 2004 there were no
investor grievance remaining pending for a period exceeding one month and as explained to us by the management, the Registrars
have reported to the Shareholder/ Investors Grievances Committee regularly on the status of such grievances.
We further state that such compliance is neither an assurance as to future viability of the Company nor the efficiency or effectiveness
with which the management has conducted the affairs of the Company.
For CHATURVEDI & SHAH
R. KORIA
Partner
Membership No. 35629
Place : Mumbai
Dated : 29th June 2004
13
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AUDITORS REPORT
To the members of Jai Corp Limited
We have audited the attached Balance Sheet of Jai Corp Limited, as at 31st March, 2004 and also
the Profit and Loss Account and Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Companys management. Our responsibility is
to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in India. These
standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
1. As required by the Companies (Auditors Report) Order, 2003 issued by Central Government of
India in terms of Section 227 (4A) of the Companies Act 1956, we give in the Annexure hereto a
statement on the matters specified in the paragraphs 4 and 5 of the said order.
2. Further to our comments in the Annexure referred to in paragraph 1 above, we state that :
a) We have obtained all the information and explanations which to the best of our knowledge
and belief were necessary for the purpose of our audit.
b) In our opinion, proper books of account, as required by law, have been kept by the Company,
so far as appears from our examination of such books.
c) The Balance Sheet and Profit and Loss Account and Cash Flow Statement referred to in this
report are in agreement with the books of account.
d) In our opinion the Balance Sheet and the Profit and Loss Account and Cash Flow Statement
complies with the mandatory Accounting Standards referred to in Section 211 (3C) of the
Companies Act, 1956.
e) On the basis of the written representations received from the Directors as on 31st March,
2004, and taken on record by the Board of Directors, we report that none of the directors is
disqualified as on 31st March, 2004 from being appointed as a director in terms of Section
274 (1) (g) of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to explanations given to us,
the said Balance Sheet and Profit and Loss Account read together with the Significant
Accounting Policies and other notes thereon, in particular note no. 9 of schedule Q regarding
change in accounting policy of accounting for advance licence / DEPB benefits, give the
information required by the Companies Act,1956, in the manner so required and give a true
and fair view :
I) In so far as it relates to Balance Sheet, of the state of affairs of the Company as at 31st
March, 2004 and
II) In so far as it relates to the Profit and Loss Account, of the Profit of the Company for the
year ended on that date.
III) In so far as it relates to the Cash Flow Statement, of the Cash Flow for the year ended
on that date.
R. KORIA
Place : Mumbai Partner
Date : 29th June 2004 Membership No. 35629
ANNEXURE TO AUDITORS REPORT
(Referred to in paragraph 1 of our report of even date)
(i) In respect of its fixed assets :
(a) The Company has maintained proper records showing full particulars including quantitative
details and situation of fixed assets.
(b) As explained to us, the fixed assets have been physically verified by the management in
accordance with a phased programme of verification, which in our opinion, is reasonable,
considering the size and nature of its business. No material discrepancies were noticed on
such verification as compared to the book records.
(c) During the year the company has disposed off substantial part of fixed assets of plastic
processing unit at Rakholi (Silvasa) however it has not affected the going concern status of
the company.
(ii) In respect of its inventories :
(a) As explained to us, inventories have been physically verified by the management at reasonable
intervals.
(b) In our opinion, the procedures of physical verification of inventories followed by the
management is reasonable and adequate in relation to the size of the Company and the
nature of its business.
(c) On the basis of our examination of inventory records, we are of the opinion that the company
is maintaining proper records of inventory. As explained to us, there were no material
discrepancies noticed on physical verification of the inventories, as compared to book records
and minor discrepancy have been properly dealt with in the books of account.
(iii) (a) The Company has not taken loans from companies, firms and other parties covered in the
Register maintained under Section 301 of the Companies Act, 1956. There are seven parties
covered in the Register maintained under section 301 of the Companies Act, 1956, to which
the company has granted loans. The maximum amount involved during the year was Rs.
1444.25 Lacs and the year-end balance of loans granted to such parties was Rs. 105.00
Lacs.
(b) In our opinion, the rate of interest and other terms and conditions on which loans have been
granted to parties listed in the Register maintained under Section 301 of the Companies Act,
1956 are not, prima facie, prejudicial to the interest of the Company.
(c) There is no overdue amount of loans granted to companies, firms or other parties listed in
the Registers maintained under Section 301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations given to us there are adequate
internal control procedure commensurate with the size of the Company and the nature of its
business for the purchase of inventories and fixed assets and for sale of goods. We have not
observed any continuing failure to correct major weakness in the internal control.
(v) (a) In our opinion and according to the information and explanations given to us, transactions
that need to be entered into a Register in pursuance of Section 301 of the Companies Act,
1956, are being entered.
(b) Each of these transactions, made in pursuance of contracts or arrangements entered in the
Register maintained u/s.301 of the Companies Act, 1956, and aggregating during the year to
Rs.5,00,000/- or more in respect of each party, have been made at prices which are reasonable
having regard to the prevailing market prices.
(vi) The Company has not accepted any deposit from the public and hence directives issued by
the Reserve Bank of India and the provisions of Section 58A and 58 AA of the Companies
Act, 1956 and rules framed thereunder are not applicable for the year under audit.
(vii) The Company has an internal audit system, which in our opinion, needs to be further
strengthened to make it commensurate with the size and nature of its business.
(viii) We are informed by the management that Central Government has prescribed the maintenance
of Cost Records under section 209 (1) (d) of the Companies Act, 1956, in respect of only one
product of the company. We have broadly reviewed the accounts and records of the company
in this connection and are of opinion that, prima facie; prescribed accounts and records have
been made and maintained. We have not, however, made a detailed examination of the
records with a view to determine whether they are accurate.
(ix) (a) According to the records, the Company has generally been regular, in depositing with
appropriate authorities undisputed statutory dues including Provident Fund, Employees State
Insurance, Income-tax, Sales-tax, Wealth tax, Custom Duty, Excise Duty, Cess and any
other statutory dues except Investor Education and Protection Fund and in few cases of
other statutory dues.
(b) According to the information and explanations given to us, there is no undisputed amounts
payable in respect of such statutory dues, except Rs. 2.65 Lacs in respect of Investor
Education and Protection Fund , as at 31st March, 2004 for a period of more than six months
from the date they became payable, which has since been paid.
(c) The disputed statutory dues aggregating to Rs. 211.12 Lacs, that have not been deposited
on account of matters pending before appropriate authorities are as under :
Name of the Statute Nature of Amount Forum where dispute
the Dues (Rs. in Lacs) is pending
Central and Bombay Sales Tax Act Sales Tax 23.13 Assistant Commissioner
(Appeals)
Central and Bombay Sales Tax Act Sales Tax 152.51 Dy. Commissioner
(Appeals)
Income Tax Act Income Tax 35.48 Commissioner
(Appeals)
Total 211.12
(x) The Company neither has accumulated losses nor it has incurred any cash losses during the
current financial year and the immediately preceding financial year.
(xi) Based on our audit procedures and information and explanations given by the management, we
are of the opinion that the Company has not defaulted in repayment of dues to a financial institution
and bank.
(xii) According to the information and explanations given to us, the Company has not granted loans
and advances on the basis of security by way of pledge of shares, debenture and other securities.
(xiii) In our opinion, the Company is not a chit fund, a nidhi or a mutual benefit society. Therefore, the
provisions of clause 4 (xiii) of the Companies (Auditors Report) Order, 2003 is not applicable to
the Company.
(xiv) The company has maintained proper records of transactions and contracts in respect of trading in
shares and other investments and timely entries have been made therein. The investments are
held by the Company in its own name.
(xv) The Company has not given any guarantee for loans taken by others from bank or financial
institutions.
(xvi) According to the information and explanations given to us the Company has not taken any term
loan during the year.
(xvii) On the basis of review of utilization of funds, which is based on overall examination of the Balance
Sheet of the Company as at 31st March, 2004, related informations as made available to us and
as represented to us, by the management, fund raised on short term basis have not been used for
long term purposes, however the funds raised / generated on long term basis to the extent of
Rs.15,458.40 Lacs have been used for short term purposes (Current investments / current assets
/ loans and advances).
(xviii)During the year Company has not made any preferential allotment of shares to parties and
companies covered in the Register maintained under Section 301 of the Act.
(xix) The Company has not issued any debentures and hence clause 4 (xix) of the Companies (Auditors
Report) Order, 2003 is not applicable to the Company.
(xx) During the year the Company has not raised any money by public issues.
(xxi) According to the information and explanations given to us, no fraud on or by the Company has
been noticed or reported during the year.
R. KORIA
Date : 29th June 2004 Membership No. 35629
14
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BALANCE SHEET AS AT 31st MARCH, 2004
(Rs.in Lacs)
AS AT AS AT
Schedule 31.03.2004 31.03.2003
SOURCES OF FUNDS
Shareholders Funds
Share Capital A 862.91 862.91
Reserves & Surplus B 24,340.06 21,553.16

25,202.97 22,416.07
Loan Funds
Secured Loans C 56.10 378.52
Unsecured Loans D 362.94 443.26

419.04 821.78
Net Deferred Tax Liability 1,208.29 1,058.98
(Refer Note no.12 of schedule Q )

Total 26,830.30 24,296.83

APPLICATION OF FUNDS
Fixed Assets
Gross Block E 20,907.62 20,217.96
Less: Depreciation 11,797.46 11,156.03

Net Block 9,110.16 9,061.93
Capital Work-in-Progress 1,102.01 1,114.02

10,212.17 10,175.95
Investments F 4,717.50 2,714.71
Current Assets, Loans and Advances G
Inventories 8,042.41 6,179.17
Sundry Debtors 1,307.96 2,117.24
Cash & Bank Balances 111.39 104.21
Loans & Advances 3,580.51 3,860.55

13,042.27 12,261.17

Less : Current Liabilities and Provisions H
Current Liabilites 1,117.17 858.56
Provisions 34.83 17.81

1,152.00 876.37

Net Current Assets 11,890.27 11,384.80
Miscellaneous Expenditure I 10.36 21.37
(To the extent not written off or adjusted)

26,830.30 24,296.83

Notes on Accounts & Contingent Liabilities Q
As per our report of even date For and on behalf of the Board
For CHATURVEDI & SHAH For JAI CORP LTD
J. K. JAIN Executive Chairman
R. KORIA
Partner S. P. JAIN Managing Director
Mumbai, 29th June, 2004 D. V. IYER Company Secretary
15
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PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2004
(Rs.in Lacs)
Schedule YEAR ENDED YEAR ENDED
31.03.2004 31.03.2003
INCOME
Turnover J 21,741.86 22,585.62
Less : Excise duty recovered on sales 1,942.23 1,983.23

Net Turnover 19,799.63 20,602.39
Other Income K 1,102.57 703.05
Increase / (Decrease) in Stocks L 930.51 1,448.94

21,832.71 22,754.38

EXPENDITURE
Purchases and Raw Materials Consumed M 13,887.15 15,374.56
Employees Remuneration and Benefits N 848.81 770.24
Manufacturing, Selling & Administrative Expenses O 3,649.51 3,780.01
Finance Charges P 32.43 42.70
Excise Duty (6.98) 67.55
Depreciation 830.26 900.25

19,241.18 20,935.31
Less : Pre operative expenses of Projects (Net) 55.79

Net Expenditure 19,241.18 20,879.52

PROFIT FOR THE YEAR BEFORE TAX AND EXTRA ORDINARY ITEMS 2,591.53 1,874.86
Add :- Extra Ordinary Items 1,327.00

PROFIT FOR THE YEAR BEFORE TAX 3,918.53 1,874.86
Less : Provision for Taxation :
Current Tax 1,010.00 280.00
Deferred Tax 149.31 (113.93)

PROFIT FOR THE YEAR AFTER TAX 2,759.22 1,708.79
Balance brought forward from last year 2,522.77 867.95
Prior Period Adjustments (Net) 0.77 18.83
Excess Provision for Income tax in earlier years written back 26.91 97.20

AMOUNT AVAILABLE FOR APPROPRIATIONS 5,309.67 2,692.77
APPROPRIATIONS

SURPLUS CARRIED TO BALANCE SHEET 5,034.67 2,522.77

Basic & Diluted earning per equity share of Rs. 10 each.
(Including Extra Ordinery Items) 31.98 19.00
(Excluding Extra Ordinery Items) 22.29 19.00
(Refer Note No. 13 of Schedule Q
Notes on Accounts & Contingent Liabilities Q
R. KORIA
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SCHEDULES FORMING PART OF THE BALANCE SHEET
(Rs. in Lacs)
AS AT AS AT
31.03.2004 31.03.2003
SCHEDULE A
SHARE CAPITAL
AUTHORISED
2,00,00,000 Equity Shares of Rs. 10 each 2,000.00 2,000.00
15,000 1% Non-Cumulative Non-Participating Redeemable Preference
Shares of Rs. 100 each 15.00 15.00
4,85,000 Unclassified Shares of Rs. 100 each 485.00 485.00

2,500.00 2,500.00

ISSUED AND SUBSCRIBED
86,31,400 Equity Shares of Rs. 10 each 863.14 863.14
PAID UP
86,26,940 Equity Shares of Rs. 10 each. 862.69 862.69
Add : Forfieted Share(Amtount Originally Paid up on 4460 Shares) 0.22 0.22

862.91 862.91

NOTES :
(A) Of the above shares
(i) 24,00,000 Equity Shares have been allotted as Bonus Shares by Capitalisation of Free
Reserves.
(ii) 49,63,522 Equity Shares have been allotted, without payment being received in cash,
pursuant to the Scheme of Amalgamation of Sipta Coated Steels Limited and Comet Steels
Limited with the Company.
(B) In terms of Scheme of Arrangement as approved by the Honourable High Court Judicature at
Mumbai vide its order dated 6th June 2002, the Company has purchased and cancelled 632122
Equity Shares during the year ended 31st March, 2003.
SCHEDULE B
RESERVES & SURPLUS
Capital Reserve
As per last Balance Sheet 92.17 92.17
Equity Share Premium
As per last Balance Sheet 6,068.22 6,226.25
Less : Utilised for buy back of Equity Shares of the company 158.03

6,068.22 6,068.22
General Reserve
Add : Transferred from Profit and Loss Account 275.00 170.00

13,145.00 12,870.00
Profit and Loss Account 5,034.67 2,522.77

24,340.06 21,553.16

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SCHEDULES FORMING PART OF THE BALANCE SHEET (Contd.,)
(Rs. in Lacs)
AS AT AS AT
31.03.2004 31.03.2003
SCHEDULE C
SECURED LOANS
Working Capital Loans from Bank 56.10 378.52

56.10 378.52

NOTE :
Above loans are secured by hypothecation of the Companys inventories and book
debts and further secured by way of negative lien on immoveable fixed assets. The
loans are also guaranteed by some of the Directors of the Company in their personal
capacity.
SCHEDULE D
UNSECURED LOANS
Interest Free Sales-tax Loan 362.95 443.26

362.95 443.26

Note : Amount repayable within one year Rs. 120.63 Lacs (Previous Year Rs.80.31 Lacs).
SCHEDULE - E
FIXED ASSETS
(Rs. in Lacs)
GROSS BLOCK DEPRECIATION NET BLOCK
PARTICULARS AS AT Additions Deductions/ AS AT UPTO For The Deductions/ UPTO AS AT AS AT
01.04.2003 Adjustments 31.03.2004 31.03.2003 Year Adjustments 31.03.2004 31.03.2004 31.03.2003
FREEHOLD LAND 850.01 274.77 575.24 575.24 850.01
LEASEHOLD LAND 451.86 451.86 451.86 451.86
BUILDINGS 3,724.90 27.06 2.81 3,749.15 798.90 106.22 0.58 904.54 2,844.61 2,926.00
PLANT & MACHINERY 14,460.19 1,126.48 288.16 15,298.51 9,933.34 663.94 181.27 10,416.01 4,882.50 4,526.85
DRAWINGS & DESIGNS 65.38 65.38 65.38 65.38
FURNITURE & FIXTURES 141.52 1.66 1.47 141.71 93.27 8.86 1.20 100.93 40.78 48.25
OFFICE EQUIPMENTS 281.73 21.57 2.97 300.33 153.64 25.41 1.86 177.19 123.14 128.09
VEHICLES 242.37 87.81 4.74 325.44 111.50 25.83 3.92 133.41 192.03 130.87
TOTAL 20,217.96 1,264.58 574.92 20,907.62 11,156.03 830.26 188.83 11,797.46 9,110.16 9,061.93
PREVIOUS YEAR 18,053.28 2,422.09 257.41 20,217.96 10,421.55 900.25 165.77 11,156.03 9,061.93
CAPITAL WORK IN PROGRESS 1,102.01 1,114.02
NOTES :-
1. Leasehold land includes Rs. 23.87 Lacs (Prevous Year Rs. 23.87 Lacs) in respect of which title is pending for transfer in the name of the company.
2. Building includes Rs.0.01 Lacs (Prevous Year Rs. 0.02 Lacs) being the value of shares in Co-operative Housing Society towards ownership of residential flats.
3. Capital Work-in-Progress includes :
i) Rs. Nil (Previous Year Rs.0.02 Lacs) on account of pre-operative expenses.
ii) Rs. 1.59 Lacs (Previous Year Rs.2.71 Lacs) on account of cost of construction material at site.
iii) Rs. 765.48 lacs (Previous year Rs.614.53 lacs) on account of advances made to the suppliers for capital expenditure.
4. Depreciation for the year includes Rs. .Nil (Previous Year Rs. 0.46 Lacs) capitalised as Pre-operative Expenses
5. Addition to Fixed assets & Capital Work in Progress includes Rs. Nil Lacs(Previous Year Rs.0.56 Lacs) on account of Exchange difference (net) .
6. Elecrical Installation includes Rs. 25.40 lacs (previous year Rs. 25.40 Lacs) being the amount spent for erection of 11 KV underground cable feeder from Khadoli sub-station to
Unit, the ownership of which vests with Electricity Deptt of Dadra & Nagar Haveli (a Union Teritory).
18
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(Rs. in Lacs)
AS AT AS AT
31.03.2004 31.03.2003
SCHEDULE F
INVESTMENTS
QUANTITY
AS AT AS AT
31.03.2004 31.03.2003
LONG TERM INVESTMENTS
(I) TRADE INVESTMENTS
IN SUBSIDIARY COMPANY- (Unquoted)
SARBAGS PTY LTD
(A) IN EQUITY SHARE CAPITAL
Equity Shares of A$ 1 each 50,000 50,000 12.34 12.34
(B) IN PREFERENCE SHARE CAPITAL
1% Reedemable Non Cumulative
Preference Shares of A$ 1 each 410,000 410,000 100.93 100.93

113.27 113.27
(II) NON TRADE INVESTMENTS
IN PREFERENCE SHARES - of Re. 1/- each
(Unquoted Fully Paid Up)
Cellbion Interactive Pvt Ltd 810810 900.00
CURRENT INVESTMENTS
OTHER THAN TRADE INVESTMENTS
QUOTED- FULLY PAID UP
IN EQUITY SHARES (OF RS. 10/- EACH)
Padmini Technologies Ltd. 800 0.05
Bharat Petroleum Corporation Ltd 392,000 870.44
Dredging Corp of India Ltd 14,850 59.40
GAIL(India) Limited 193,031 376.41
IDBI Bank Limited 586,740 340.90
ONGC Ltd. 159,975 1,199.81
TV Today Network Limited 64,500 61.28
Hindustan Petroleum Corporation Ltd. 465,000 1,242.97
Indraprastha Gas Ltd. 113,387 54.43
Shipping Corporation of India Ltd. 258,000 130.55
UNQUOTED-FULLY PAID UP
IN UNITS - of Rs. 10/- each
ING Vysya Income Fund 3598324.36 361.08
Prudential ICICI Short Term Plan 10,572,403 3,192,389 1,250.92 357.43

TOTAL 4,717.50 2,714.71

(Rs. in Lacs)
NOTES : (I) Aggregate value of Investments :-
As at 31.03.2004 As at 31.03.2003
Book Value Market Value Book Value Market Value

Quoted Investments 2,092.23 2,352.00 2,244.01 2,369.76
Unquoted Investments 2,625.27 470.70
(ii) The Current investments are net off provision for diminiution in value of current investment by Rs.28.14 Lacs (Previous Year
Rs. 306.57 lacs.)
(iii) Movements during the year Face Value Nos. Cost
Purchased and Sold Rs. (Rs. in Lacs)

Equity Shares
Vijaya Bank 10 912,100 218.90
UCO Bank 10 2,229,100 267.49
Mutual Fund Units
Prudential ICICI Short term Cumulative Plan 10 150,277,827 16,350.96
Prudential ICICI Liquid Plan Weekly Dividend 10 557,077,544 6,333.09
Prudential ICICI Liquid Plan Weekly Reinvestment 10 213,646,676 25,341.86
Prudential ICICI Liquid Plan Dividend Reinvestment 10 102,479,767 10,863.31
19
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(Rs. in Lacs)
AS AT AS AT
31.03.2004 31.03.2003
SCHEDULE G
CURRENT ASSETS, LOANS AND ADVANCES
CURRENT ASSETS
INVENTORIES
(Certified and Valued by the Management)
Stores, Spares, Packing Materials, Fuel, etc. 598.16 651.62
Raw Materials 2,879.03 1,892.83
Work-in-Progress 78.99 252.29
Finished Goods 4,399.64 3,224.75
Scrap 73.67 144.16
Others * 12.92 13.52

8,042.41 6,179.17
* includes realisable value of discarded fixed assets Rs.1.54 lacs ( Previous year Rs.1.54 lacs ).
SUNDRY DEBTORS
(Unsecured, considered good and subject to confirmation)
For a period of more than six months 19.71 18.38
Others * 1,288.25 2,098.86

1,307.96 2,117.24
* Sundry debtors Others include Rs.65.37 lacs (previous year Rs.118.79 lacs) due from subsidiary company.
CASH AND BANK BALANCES
Cash in hand 2.47 0.80
Balances with Scheduled Banks
In Current Accounts 44.87 34.36
In Fixed Deposit Accounts* 64.05 69.05

111.39 104.21
* Includes Rs.63.40 lacs Pledged with various Govt. Deptts.( Previous year Rs 68.40 Lacs )
LOANS AND ADVANCES
Loan to Subsidiary Company 79.99 97.48
Advances recoverable in cash or in kind or for value to be received 2,152.85 2,725.20
Deposits 171.24 152.94
Balance with Customs & Excise Authorities 892.60 825.27
Income Tax (Net) 283.83 59.66
3,580.51 3,860.55

13,042.27 12,261.17

SCHEDULE H
CURRENT LIABILITIES AND PROVISIONS
CURRENT LIABILITIES
Sundry Creditors *
Small Scale Undertakings 13.65 1.34
(As Certified by Management)
Others 323.10 237.16

336.75 238.50
Investors Education & Protection Fund
Unclaimed Dividend ** 19.64 18.12
Unclaimed & Matured Deposit 0.06
Unpaid Application Money 0.42
Unclaimed for Buy back of shares 42.07 44.03
Other Liabilities 718.71 557.43

1,117.17 858.56
PROVISIONS
Wealth Tax (Net) 4.75 4.80
Leave Encashment 10.24 9.87
Gratuity 19.84 3.14
34.83 17.81

1,152.00 876.37

* Includes Rs. 84.25 lacs ( previous year Rs.26.03 lacs ) for capital expenditure
** The amount includes amount , due and outstanding, to be credited to Investor Education and Protection Fund , Rs. 2.66 Lacs, which has
since been paid.
20
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(Rs. in Lacs)
AS AT AS AT
31.03.2004 31.03.2003
SCHEDULE I
MISCELLANEOUS EXPENDITURE
Share Issue Expenses 10.36 21.37

10.36 21.37

SCHEDULES FORMING PART OF THE PROFIT AND LOSS ACCOUNT
(Rs. in Lacs)
Year Ended Year Ended
31.03.2004 31.03.2003
SCHEDULE J
TURNOVER
Sales 21,429.09 22,371.14
Services 312.77 214.48

21,741.86 22,585.62

SCHEDULE K
OTHER INCOME
Dividend - Current Investments 237.93 166.38
(TDS Rs. Nil (Previous year Rs. 17.46 lacs)
Profit on Sale of Fixed Assets (Net) 6.56
Profit on Sale of Current Investment(Net) 638.91 112.54
Sundry Balances W/Back(Net) 54.71
Exchange difference (Net) 9.72 11.01
Rent Received 17.78
Interest Received 178.47 254.59
(Tax deducted at Source Rs.13.04 lacs (Previous year Rs.31.55 lacs)
Miscellaneous Income 19.76 97.26

1,102.57 703.05

SCHEDULE L
INCREASE / (DECREASE) IN STOCKS
Closing Stock
Scrap 73.67 144.16
Others 11.38 11.98

4,563.68 3,633.18
Opening Stock
Scrap 144.16 35.47
Others 11.98 11.98

3,633.17 2,184.24

Increase / (Decrease) in Stocks 930.51 1,448.94

21
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SCHEDULES FORMING PART OF THE PROFIT AND LOSS ACCOUNT (Contd.,)
(Rs. in Lacs)
31.03.2004 31.03.2003
SCHEDULE M
PURCHASES & RAW MATERIALS CONSUMED
PURCHASES 103.62 94.75
RAW MATERIALS CONSUMED
Opening Stock 1,892.84 763.23
Add : Purchases 14,769.72 16,409.41
16,662.56 17,172.64
Less : Closing Stock 2,879.03 1,892.84

13,783.53 15,279.81

13,887.15 15,374.56

SCHEDULE N
EMPLOYEES REMUNERATION AND BENEFITS
Salaries, Wages and Perquisites 787.73 713.80
Contribution to Provident and Other Funds 30.42 28.57
Staff Welfare & amenities 12.58 9.72
Gratuity 18.08 18.15

848.81 770.24

SCHEDULE O
MANUFACTURING, SELLING & ADMINISTRATIVE EXPENSES
Power, Fuel and Water 1,366.02 1,421.22
Stores, Spares and Packing Materials 1,147.10 902.97
Job Work Charges 72.78 84.74
Repairs and Maintenance
Plant & Machinery 57.47 60.60
Buildings 18.50 11.28
Others 26.33 21.00
Rent 23.76 27.54
Rates and Taxes 12.04 21.67
Insurance 62.72 44.02
Legal, Professional and Consultancy Charges 131.71 67.43
Travelling and Conveyance 103.29 127.24
Advertisement, Publicity and Sales Promotion 17.98 12.71
Freight, Handling Charges and Octroi (Net) 253.05 394.27
Brokerage, Commission and Discount 70.73 87.47
Payment to Auditors 15.19 14.82
Preliminary Expenses Written Off 11.00 11.11
Provision for Diminution in value of Investments 28.14 306.33
Directors Sitting Fees 0.93 0.70
Charity and Donation 26.63 13.25
Bad Debts 4.59 0.04
Loss on Sale of Fixed Assets (Net) 9.12
Sundry Balances W/Off(Net) 4.63
Wealth Tax 2.00 2.00
Other Expenses 183.80 147.60

3,649.51 3,780.01

SCHEDULE P
FINANCE CHARGES
Interest (On other than fixed loans) 14.03 28.11
Bank Charges 18.40 14.59

32.43 42.70

22
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SCHEDULES FORMING PART OF THE BALANCE SHEET AND PROFIT AND LOSS ACCOUNT
SCHEDULE Q
NOTES ON ACCOUNTS AND CONTINGENT LIABILITIES
1. SIGNIFICANT ACCOUNTING POLICIES
a. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The financial statements have been prepared under historical Cost convention, in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 1956 as adopted consistently by the Company.
b. USE OF ESTIMATES
The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and
assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognised in the
period in which the results are known/materialised.
c. FIXED ASSETS
Fixed Assets are stated at cost of acquisition or construction, net of modvat, less accumulated depreciation. All costs, including trial
production and financing costs till commencement of commercial production are capitalised.
d. DEPRECIATION
i) Depreciation is provided on straight line method at the rates and in the manner prescribed in Schedule XIV of the Companies Act,
1956.
ii) Drawings & Designs are written off on straight line method over a period of ten years.
iii) No amortisation has been made in respect of premium paid for the leasehold land, since grant of lease is for a long period.
e. INVESTMENTS
Current investments are carried at lower of cost and market value/NAV, computed individually. Long Term Investments are stated at
cost. Provision for diminution in the value of long Term investments is made only if such decline is other than temporary in the opinion
of the management.
f. VALUATION OF INVENTORIES
In general, all inventories of Finished Goods, Work-in-Progress etc., are stated at lower of cost or net realisable value. Cost of inventories
comprise of all cost of purchase, cost of conversion and other cost incurred in bringing the inventory to their present location and
condition. Raw Material & Stores and spares in respect of Packaging Division are stated at cost on FIFO basis and in respect of Steel
Division on Average basis. Scrap and trial run products are valued at estimated net realisable value. Inventories of Finished Goods and
Scrap includes excise duty wherever applicable.
g. CUSTOMS
The liability on account of Customs duty is recognised on clearance of the goods from the bonded warehouse.
h. ADVANCE LICENCE BENEFITS
The benefits in respect of Advance Licences / Credit in Pass Book scheme received by the Company against exports made by it are
recognised as and when right to receive advance licences/ DEPB credit , as the case may be, is established as per the terms of the
scheme.
i. PRELIMINARY AND ISSUE EXPENSES
The preliminary and issue expenses are amortised / charged to the Profit and Loss Account over a period of ten years.
j. FOREIGN CURRENCY TRANSACTIONS
i) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of transaction.
ii) Monetary items denominated in foreign currencies at the year end not covered by the forward exchange contracts are translated at
the year end rates and those covered by forward exchange contracts are translated at the rate ruling at the date of transaction as
increased or decreased by the proportionate difference between the forward rate and exchange rate on the date of transaction,
such differences having been recognised over the life of the contract.
iii) Non monetary foreign currency items are carried at cost.
iv) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Profit and
Loss Account except in cases where they relate to the acquisition of fixed assets in which case they are adjusted to the carrying
cost of such assets.
23
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SCHEDULES FORMING PART OF THE BALANCE SHEET AND PROFIT AND LOSS (Contd.,)
k. TURNOVER
Turnover include sale of scrap, waste, service charges, commission, export incentive and excise duty but excludes sales tax.
l. EMPLOYEES RETIREMENT BENEFITS
Companys contributions to Provident Fund are charged to the Profit and Loss Account.
Gratuity is charged to the profit and loss account on the basis of actuarial valuation.
m. BORROWING COST
Borrowing costs that are attributable to the acquisition or Construction of qualifying assets are capitalised as part of the cost of such
assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing
costs are charged to revenue.
n. PROVISION FOR CURRENT AND DEFERRED TAX
Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act, 1961.
Deferred tax resulting from timing difference between book and taxable profit is accounted for using the tax rates and laws that have
been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to
the extent that there is a reasonable certainty that the assets will be realized in future.
2. In the opinion of the Management, the Current Assets, Loans and Advances are approximately of the value stated, if realised i n the ordinary
course of business.
3. Auditors Remuneration
(Rs. in lacs)
2003-04 2002-03
Audit Fees 8.50 8.50
Tax Audit Fees 3.00 3.00
Certification Fees 3.39 2.70
Out of Pocket Expense 0.30 0.62

15.19 14.82

4. As at 31st March, 2004 the Company has made enquiries from its creditors to ascertain whether the outstanding creditors are small scale
industrial undertaking or otherwise. The amount disclosed as SSI creditors under the head current liabilities in Schedule H is only in
respect of those creditors who have responded to the companys enquiry. Such undertakings to whom the Company owes a sum for more
than 30 days are: Caliber Engg Co, Contech Instruments Ltd, Jeyaletshmi Machine Works, SU Components.
The Company has not received any claim for payment of interest under the interest on delayed payment to Small Scale and Ancilliary
Industries under the Industrial Act, 1993.
5. a) The Company has been advised that the computation of net Profits for the purpose of Directors remuneration under Section 349 of the
Companies Act, 1956 need not be enumerated since no commission has been paid to the Directors. Fixed monthly remuneration has
been paid to the Directors as per Schedule XIII to the Companies Act, 1956.
b) Directors Remuneration
(Rs. in lacs)
2003-04 2002-03
Salary 56.89 55.93
Perquisites 05.41 18.59

62.30 74.52

6. a) The Company has discontinued its manufacturing operation at plastic processing unit, situated at Rakholi (Silvassa) from Nov 2003.
The Gross Block, Net Blocks and Capital Work in progress as at 31st March, 2004 in respect of the said units are Rs. 674.67 Lacs
& Rs 382.81 Lacs & Rs 4.88 Lacs respectively. As the realizable value of plant and machinery is not determined the losses, if any, on
this account will be accounted for as and when determined.
b) After the close of the financial year, the Company has also discontinued its manufacturing operations at plastic processing unit, situated
at Masat (Silvassa) and Daman.
24
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7. During the year the company has utilised sales tax exemption certificate ( Permited to claim exemption in terms of entry E-11, of the schedule
appended to Government of Maharashtra notification u/s 41 of Bombay Sales Tax Act) for Rs. 61.66 Lacs (Previous Year Nil) and paid sales tax
amounting to Rs. 0.35 Lacs (Previous Year Nil) in respect of steel segment. As the amounts was not recovered from the customers the same has
not been adjusted against the sales.
8. Extraordinary items represents export incentives aggregating to Rs. 1327 Lacs, arising from transfer of benefits under DEPB scheme, which
pertains to the exports made during the year 2002-03. Due to the dispute with DGFT relating to classification of products under the EXIM policy,
the Company could not receive these DEPB entitlements for its steel segment for the year 2002-03 and the same were received during the year
ended 31st March 2004. As advised the same has been considered as extraordinary item.
9. Hitherto the Company was accounting for the benefits in respect of DEPB scheme against the export made by it as and when the goods were
imported against them or the licence/credit were sold, as the case may be. From the Current year, the benefits under DEPB Scheme are
recognized in the Profit and Loss account when the right to receive the DEPB credits as per the terms of the schemes is established in respect of
exports made. This change in accounting policy has resulted an additional DEPB benefits of Rs. 301.13 Lacs for the year ended 31st March
2004.Consequently the turnover and profit before tax for the year ended 31st March 2004 is higher by Rs. 301.13 Lacs.
10. Net Pre-operative Expenditure
(Rs.in lacs)
Particulars 2003-2004 2002-2003
Opening Balance (0.02) 119.86
Add : Transferred from Profit & Loss Account 55.79

(0.02) 175.65
Less : Capitalised during the year (0.02) 175.67

Closing Balance ( 0.02)
11. Debtors include Rs 0.09 Lacs(Previous year NIL) due from Tuf Ropes Pvt Ltd, a Company in which Directors are interested.
12. The deferred tax liability as at 31st March, 2004 comprises of the following :
(Rs. in Lacs)
As on As on
31.03.2004 31.03.2003
(i) Deferred Tax Liability
Related to fixed assets 1229.18 1168.92
(ii) Deferred Tax Assets
Provision for diminution in value of investment 10.09 109.90
Disallowance under the Income Tax Act, 1961 10.80 0.04

Total 20.89 109.94

Deferred tax Liability (net) 1208.29 1058.98
13. Basic and Diluted Earnings per Share
2003-04 2002-03
(a) Net Profit available for equity Shareholder (Rs. in lacs) 2759.22 1708.79
Amount used as numerator)
(b) Weighted Average Number of equity shares used as denominator for calculating EPS 86,26,940 89,95,678
(c) Basic & Diluted Earning Per Share (Rs.)
Including extraordinary item 31.98 19.00
Excluding extraordinary item 22.29 19.00
Reconciliation between Number of shares used for calculating Basic & diluted earning per share
(a) No. of Share outstanding at the year end 86,26,940 86,26,940
(b) No. of Shares purchased and cancelled during the year Nil 6,32,122
(c) Weighted average number of shares used for calculating Basic & Diluted earning per share 86,26,940 89,95,678
14. As per Accounting Standard 18, issued by the Institute of Chartered Accountants of India, the disclosure of
transactions with the related parties as defined in the Accounting Standard are given below :
(I) List of related parties with whom transactions have taken place during the year :
(i) Subsidiary: Sarbags Pty. Ltd.
(ii) Key Managerial Personnel and relatives of such personnel:
(a) Shri J. K. Jain Chairman
(b) Shri S. P. Jain Managing Director
(c) Shri Virendra Jain Director
(d) Shri V. S. Pandit Director (Works)
(e) Shri Gaurav Jain Director (From 12th March 2004)
(iii) Enterprises over which persons described in (ii) above and their Relatives are able to exercise significant influence (Other related Parties) :
(a) Pet Fibres Ltd.
(b) Polyole Fibres Pvt Ltd.
(c) Dotson Steels Ltd.
(d) Suniti Commercials Ltd.
25
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(e) Ridhi Synthetics Ltd.
(f) Tufropes Pvt Ltd.
(g) Silvassa Pipes Pvt Ltd.
(h) Silvassa Polyplast India Pvt Ltd.
(i) Resin Distributors Pvt Ltd.
(j) Shriniwas Electrosteels Ltd.
(k) Polyplast Agencies Pvt Ltd.
(l) Cellbion Interactive Pvt Ltd.
(m) Prime Wovens Ltd.
(n) TechFab India
(o) Polysil Pipes
(II) Transactions during the year with related parties :
(Rs. In lacs)
Nature of Transaction Subsidiary Key Other Total
(Excluding reimbursement) Management Related
Personnel Parties

Fixed Assets
a) Sold during the year 89.40 89.40
() () (91.49) (91.49)
b) Purchased during the year 0.70 0.70
() () (21.24) (21.24)
Investments
a) Balance as at 1st April, 2003 113.27 113.27
(113.27) (113.27)
c) Balance as at 31st March, 2004 113.27 899.99 1013.26
(113.27) (113.27)
Sundry Debtors as at 31st March,04 65.37 0.14 65.51
(118.79) () (118.79)
Loans & Advances
a) Balance as at 1st April, 2003 97.47 97.47
b) Given/adjusted during the year 18.63 122.00 140.63
(9.62) () (2216.08) (2225.70)
c) Returned during the year 36.11 732.00 768.11
(1516.08) (1516.08)
d) Balance as at 31st March, 2004 79.99 90.00 169.99
(97.47) (700.00) (797.47)
Advance recoverable in cash or in kind for value to be received
Balance as at 31st March, 2004 35.53 35.43
(29.89) (29.89)
Current Liabilities
a) Other Liabilities As at 31.3.04 0.17 0.17
() ()
Sale of Goods 600.01 420.42 1020.43
(571.82) (38.17) (609.99)
Other Income
a) Job Work Income 244.16 244.16
(200.94) (200.94)
b) Discount on Raw Materials 156.23 156.23
(Deducted from Purchases) (202.96) (202.96)
c) Interest received 44.90 44.90
(33.66) (33.66)
d) Miscellaneous Income 0.88 0.88
(2.94) (2.94)
26
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(Rs. In lacs)
Nature of Transaction Subsidiary Key Other Total
(Excluding reimbursement) Management Related
Personnel Parties

Purchase of Goods 236.92 236.92
(63.52) (63.52)
Expenditure
a) DirectosRemuneration & Perks 62.30 62.30
(74.52) (74.52)
b) Directors Sitting Fee 0.20 0.20
(0.16) (0.16)
c) Job work Charges 31.29 31.29
(52.38) (52.38)
d) Rent 12.00 12.00
(12.00) (12.00)
e) Other Expenses 1.12 1.12
(1.32) (1.32)
Note : No amount pertaining to related parties have been provided for as doubtful debts. Also no amount have been written off or written
back during the year. Figures in bracket represent previous years amounts.
(III) Loans and advances in the nature of Loans given to Subsidiaries and other related parties :
(A) Loans and Advances in the nature of Loans :
(Rs. in lacs)
Name of the Company 31.03.2004 31.03.2003 Maximum
Relationship Balance as at Balance as at amount
outstanding
during the year

(i) Subsidiary Company
Sarbags Pty Ltd Subsidiary 79.99 97.47 116.11
(ii) Others
Pet Fibres Ltd Director is 90.00 90.00
Interested
Polyplast Agencies Pvt Ltd. do - 200.00 200.00
Resin Distributors Pvt. Ltd do - 500.00 500.00
Prime Wovens Ltd. do 15.00
Punctual Trading Ltd. do 7.25
Notes :
(i) Loans and advances shown above, to subsidiary and other companies fall under the category of Loans & Advances in nature of
Loans where there is no repayment schedule.
(ii) Loans and advances to Sarbags Pty. Ltd. is free of interest.
(B) Investment in the shares of the company by the Loanee
Pet Fibres Ltd. Director is 3,00,000 Shares of
Interested Rs. 10/- each.
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15. Segment information as per Accounting Standard 17 on Segment Reporting for the year ended 31st March 2004.
i) Information about Primary (Product wise) Segments.Information about Primary (Product wise) Segments.
Particulars Steel Plastic Processing Unallocated Total
2003-04 2002-03 2003-04 2002-03 2003-04 2002-03 2003-04 2002-03
Segment Revenue
External Turnover 15329.84 15978.12 6412.02 6607.50 21741.86 22585.62
Inter Segment Turnover
Gross Turnover 15329.84 15978.12 6412.02 6607.50 21741.86 22585.62
Less : Excise duty recovered 1294.29 1227.57 647.95 755.66 1942.24 1983.23
Net Turnover 14035.55 14750.55 5764.07 5851.84 19799.62 20602.39
Results
Segment Results 1975.75 194.49 1006.62 1561.19 2982.37 1755.68
Unallocated Corporate Income (Net) 552.19 (259.08) 552.19 (259.08)
Operating Profit/ (Loss) 1975.75 194.49 1006.62 1561.19 552.19 (259.08) 3534.56 1496.60
Interest Expenses 17.90 11.13 4.33 7.15 10.20 24.42 32.43 42.70
Interest/ Dividend Income 102.41 132.52 5.89 2.48 308.11 285.96 416.41 420.96
Income Tax 1159.31 166.07 1159.31 166.07
Net Profit/ (Loss) 2060.26 315.88 1008.17 1556.52 (309.21) (163.61) 2759.22 1708.79
Other Information
Segment Assets 13948.64 12296.00 6279.29 7137.96 20227.93 19433.96
Unallocated Corporate Assets 7754.37 5739.24 7754.37 5739.24
Total Assets 13948.64 12296.00 6279.29 7137.96 7754.37 5739.24 27982.30 25173.20
Segment Liabilities 1068.03 1426.85 221.16 185.34 1289.19 1612.19
Unallocated Corporate Liabilities 1490.14 1144.94 1490.14 1144.94
Total Liabilities 1068.03 1426.85 221.16 185.34 1490.14 1144.94 2779.33 2757.13
Capital Expenditure 269.08 276.04 583.50 860.75 400.00 38.03 1252.58 1174.82
Depreciation 507.09 647.34 307.24 247.91 15.93 5.00 830.26 900.25
Non - Cash Expenditure 0.64 0.74 10.36 10.36 28.14 306.33 39.14 317.43
ii) Notes :
(a) Segments have been identified and reported taking into account, the differing risks and returns, the organization structure and the
internal reporting system. These are organized into two main business segment based on products :
Steel :- The company is manufacturing GP/GC Coils/ Sheets at Steel unit located at Nanded ( Maharashtra )
Plastic Processing :- The company is manufacturing Woven sacks/ Fabrics at packaging units which are mainly located at Daman
(U.T.) and Dadra Nagar Haveli ( U.T.)
Unallocated :- consists of expenses incurred at the corporate level which relates to the company as a whole, income from
investments of surplus funds, Corporate assets includes Real Estate, Investments and ICDs.
(b) Segment Revenue, Results, Assets and Liabilities include the respective amounts identifiable to each of the segments. Unallocated
includes expenses incurred at the corporate level which relates to the company as a whole.
iii) Since all the operations of the company are predominantly conducted within India, as such there are no separate reportable geographical
segment. There are no separate reportable geographical segment.
28
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16. LICENSED AND INSTALLED CAPACITY
(as certified by the Management)
UNIT LICENSED CAPACITY INSTALLED CAPACITY
03-04 02-03 03-04 02-03

a) CR Coils MT N.A. N.A. 62,500 62,500
b) GP/GC Coils/Sheets MT N.A. N.A. 55,000 55,000
c) Woven Sacks/Fabrics MT N.A. N.A. 20,800 17,850
d) Polyester Chips MT N.A. N.A. 8,000 Under Installation
e) Tubes MT MT N.A. 3,600 3,600 3,600
Note : Licensed Capacity is not applicable in view of the Companys products have been delicensed.
17. ACTUAL PRODUCTION
UNIT 2003-04 2002-03

a) CR Coils/Sheets * MT 46,903 59,780
b) GP/GC Coils/Sheets ** MT 48,003 60,986
c) Woven Sacks/Fabrics *** MT 7,038 7,267
d) Tape & Liner**** MT 201 311
e) Tubes***** MT 24 44
* Including 45,731 MT (Previous year 56,552 MT) Captive Consumption.
** Including 131 MT (Previous year 205 MT) Captive consumption.
*** Including 305 MT (Previous year 212 MT) captive consumption
**** Including 111 MT(Previous year 196 MT) captive consumption
*****Including 1 MT(Previous year Nil) captive consumption
18. STOCKS
(Rs.in lacs)
2003-04 2002-03
Qty. Value Qty. Value
(MT) (MT)

OPENING STOCK
CR Coils/Sheets 2719 499.24 157 24.21
GP/GC Coils/Sheets 9,645 2,428.98 8,123 1,085.81
Tubes 16 3.12
Woven Sacks / Fabrics 392 290.82 315 194.06
Polyester Chips 22 2.59 103 12.39
Others 13.52 13.57

3,238.27 2,050.04

CLOSING STOCK
CR Coils/Sheets 1699 363.91 2719 499.24
GP/GC Coils/Sheets 13362 3778.04 9645 2428.98
Tubes 1 0.05 16 3.12
Woven Sacks / Fabrics 351 255.16 392 290.82
Polyester Chips 22 2.59 22 2.59
Others 12.81 13.52

4412.56 3238.27

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19. TURNOVER
(Rs.in lacs)
2003-04 2002-03
Qty. Value Qty. Value
(MT) (MT)

CR Coils/Sheets 2192 557.40 666 147.40
GP/GC Coils/Sheets 44155 12921.17 59259 15022.61
Tubes 38 8.40 28 5.38
Woven Sacks/Fabrics 6774 5649.85 6978 6217.91
Liner & Tape 90 231.93 115 69.06
Polyester Chips 81 9.80
Reprocess Granules 15 30.75
H.R.Coils 579 83.03
Scrap 4555 903.80 4557 720.72
Others 96.45 21.08
PP Granules 133 66.94
Export Incentive 2289.40 * 74.15
Services and Commission 312.77 214.48

23068.86 22585.62

* Includes extraordinary item amounting to Rs. 1327 lacs.
20. RAW MATERIALS CONSUMED
HR Steel Coils 49650 9480.67 64578 10571.58
CR Coils 1960 282.12
Zinc & other Alloys 3065 1771.25 3216 1745.98
HR Slit Coils 24 3.90 46 7.30
HDPE/PP/LDPE/LLDPE 5926 2320.41 6606 2659.05
Fabric 332 207.30 27 13.78

13783.53 15279.81

21. PURCHASES
PP Granules 133 66.94
H.R. Coils 579 83.39
Others 36.68 11.36

103.62 94.75

22. VALUE OF IMPORTED AND INDIGENOUS
RAW MATERIALS AND SPARE PARTS AND
COMPONENTS CONSUMED
(Rs.in lacs)
2003-04 2002-03
Value % to Value % to
Total Total

i) Raw Materials
Indigenous 13678.79 99.24 15225.81 99.65
Imported 104.74 0.76 54.00 0.35

13783.53 100.00 15279.81 100.00

ii) Spare Parts & Components
Indigenous 1123.03 97.90 701.85 97.62
Imported 24.06 2.10 17.12 2.38

1147.09 100.00 718.97 100.00

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23. VALUE OF IMPORTS ON CIF BASIS
(Rs.in lacs)
2003-04 2002-03
Raw Materials 89.43 58.91
Stores items 37.99 44.83
Capital Item 155.07

127.42 258.81

24. EXPENDITURE IN FOREIGN CURRENCY
Travelling 9.08 20.89
Interest and Bank Charges 4.61 3.09
Professional & Consultation Fees 28.97 6.15
Others 18.39 1.36

61.05 31.49

25. EARNINGS IN FOREIGN CURRENCY
FOB value of Exports 6000.24 7664.59
26. CONTINGENT LIABILITIES IN RESPECT OF (Rs. In Lacs)
As at As at
31st March, 2004 31st March, 2003
(a) Guarantees given by Bankers 9.00 54.31
(b) Claims not acknowledged as debts 370.43 374.86
(c) Estimated amount of contracts remaining to be executed on capital account and not provided for
(net of advances paid) 18.22 573.01
27. The Previous years figures have been regrouped, rearranged and reclassified wherever necessary.
R. KORIA
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BALANCE SHEET ABSTRACT AND COMPANYS GENERAL BUSINESS PROFILE
REGISTRATION DETAILS
Registration No. 3 6 5 0 0 State Code 1 1
Balance Sheet Date 3 1 0 3 2 0 0 4
CAPITAL RAISED DURING THE YEAR
Public issue N I L Right issue N I L
Bonus issue N I L Private Placement N I L
POSITION OF MOBILISATION AND DEPLOYMENT OF FUNDS (Amount in Rs Thousands)
Total Liabilites 2 6 8 3 0 3 0 Total Assets 2 6 8 3 0 3 0
Sources of Funds :
Paid up Capital 8 6 2 9 1 Reserves & Surplus 2 4 3 4 0 0 6
Secured Loans 5 6 1 0 Unsecured Loans 3 6 2 9 5
Application of funds :
Net Fixed Assets 1 0 2 1 2 1 7 Investments 4 7 1 7 5 0
Net Current Assets 1 1 8 9 0 2 7 Misc Expenditure 1 0 3 6
PERFORMANCE OF COMPANY (Amount in Rs Thousands)
Turnover (Net) & Other Income 2 0 9 0 2 2 0 Total Expenditure 1 9 2 4 1 1 8
Profit before tax 2 5 9 1 5 3 Profit after tax 2 7 5 9 2 2
Earning per share in Rs. 2 2 . 2 9 Dividend rate % N I L
GENERIC NAMES OF THREE PRINCIPAL PRODUCTS/SERVICES OF THE COMPANY(as per monetary terms)
Product Description I T C C O D E
Cold Rolled Steel Coils/Sheets 7 2 0 9
Galvanised Plain/Corrugated Coils/Sheets 7 2 1 0
Sacks and Bags 3 9 2 3
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CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2004
(Rs.in Lacs)
2003 - 2004 2002 - 2003
A. Cash Flow from Operating Activities
Net Profit after tax as per P & L Account 2,759.22 1,708.79
Extra Ordinary items 20.22 (43.56)

2,779.44 1665.23
Adjusted for
Depreciation ( Net ) 830.26 899.79
Tax Provision 1,161.31 168.07
Effects of exchange rate change 0.77 (1.88)
Loss / (Profit) on sale of investments ( Net ) (610.77) 193.79
Loss / (Profit) on sale/demolition of fixed assets ( Net ) 9.12 (6.56)
Finance Charges 32.43 42.70
Income/Interest on Investment (70.18) (119.58)
Dividend Income (237.93) 1,115.01 (166.38) 1,009.95

Operating Profit before Working Capital Changes 3894.45 2675.18
Adjusted for
Trade & Other Receivables (50.61) (1,273.89)
Inventories (1,863.24) (2,744.07)
Trade Payables 213.27 (197.16)

Cash generated from operations 2,193.87 (1,539.94)
Interest paid (22.48) (32.59)
Direct taxes paid (1,168.68) (152.05)

Cash Flow before extraordinary items 1,002.71 (1,724.58)
Extra Ordinary items 0.77 18.83

Net Cash From / ( used in ) Operating Activities 1,003.48 (1,705.75)

B. Cash Flow from Investing Activities
Purchase of Fixed Assets (1,194.35) (1,170.46)
Sale of Fixed Assets 376.97 8.20
Purchase of Investments (67,299.04) (25,921.09)
Sale of Investments 65,907.02 30,134.03
Loans 1,312.49 (1,244.40)
Income/Interest on Investment 65.85 64.90
Dividend Received 237.93 166.38

Net Cash (used in) / from Investing Activities (593.13) 2,037.56

C. Cash Flow from Financing Activities
Short term loans ( Net ) (322.42) (37.29)
Repayment of Long term loans (80.31) (76.03)
Buyback of Shares including share premium (1.96) (177.21)
Dividends Paid 1.52 0.35

Net Cash (used in) Financing Activities (403.17) (290.18)

Net Increase/(Decrease) in Cash and Cash Equivalents (A+B+C) 7.18 41.63
Opening Balance of Cash and Cash Equivalents 104.21 62.58
Closing Balance of Cash and Cash Equivalents 111.39 104.21
Notes :
1) Bracket indicates cash outflow.
2) Previous year figures have been regrouped wherever necessary.
R. KORIA
33
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STATEMENT PURSUANT TO SECTION 212 OF THE COMPANIES ACT, 1956 RELATING TO SUBSIDIARY
COMPANY
1 Name of the Subsidiary : Sarbags Pty Ltd.
2 Financial year of the Subsidiary company ended on : 31st March, 2004
3 Holding Companys interest
i) No. of Equity Shares : 50,000
Face Value : Au $ 1
Extent of Holding : 100%
4 The net aggregate amount of Subsidiarys Profit / (Losses) so
far as it concerns the members of the Holding Company not dealt
with in the Holding Companys Accounts
i) For the Current Financial year (Rs.) : AU $ 260165
: Rs. 82.78 Lakhs
ii) For the previous Financial year (Rs.) : AU $ 165956
: Rs. 45.06 lakhs
Net aggregate amount of Profit/(Losses) of the subsidiary
which has been dealt with in the accounts of the Holding Company
i) For the Current Financial Year (Rs.) : NIL
ii) For the previous Financial year (Rs.) : NIL
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Sarbags Pty Ltd
Corporate Information
ABN 75 097 994 879
Directors
Dilip Shukla
Virendra Jain
Company Secretary
Dilip Shukla
Registered Office :
19, Casino Road,
Greystances, NSW 2000
Bankers
Westpac Banking Corporation
22 - 24 Station Street,
Wentworthvile NSW 2145
Auditors
Gould Ralph & Company
Level 42 AAP Centre
259 George Street, Sydney NSW 2000
DIRECTORS MEETINGS
The numbers of meeting of directors (including meetings oc committees
of directors) held during the year and the number of meetings attended
by each director were as follows :
Directors
Meeting
Number of meetings held : 4
Number of meetings attended :
Dilip Shukla 4
Virendra Jain 4
Signed in accordance with a resolution of the directors.
Virendra Jain Dilip Shukla
Sydney, 25th June, 2004 Director Director
Directors Report
Your directors present their report on the Company for the financial year ended 31st March, 2004.
Directors
The names of the directors in office at any time during or since the end of the financial year are :
Dilip Shukla
Virendra Jain
Directors have been in office since the start of the financial year to the date of this report unless otherwise
stated.
Operating Results
The profit of the Company for the financial year after providing for income tax amounted to $263,019.
Review of Operations
A review of the operations of the Company during the financial year and the results of those operations
found that during the year, the Company continued to engage in its principal activity, the results of which
are disclosed in the attached financial statements.
Significant Changes in State of Affairs
No significant changes in the state of affairs of the Company occurred during the financial year.
Principal Activities
The principal activities of the Company during the financial year were the importation and distribution of
heavy duty storage bags for use in the Food & Beverage, Mining and Heavy Machinery Industries.
No significant change in the nature of these activities occurred during the year.
After Balance Date Events
No matters or circumstances have arisen since the end of the financial year which significantly affected
or may significantly affect the operations of the Company, the results of those operations, or the state of
affairs of the Company in future financial years.
Likely Developments
Likely developments in the operations of the Company and the expected results of those operations in
future financial years have not been included in this report as the directors believe, on reasonable
grounds, that the inclusion of such information would be likely to result in unreasonable prejudice to the
Company.
Environmental Issues
The Companys operations are not regulated by any significant environmental regulation under a law of
the Commonwealth or of a State or Territory.
Dividends Paid or Recommended
No dividends were paid or declared since the start of the financial year.No recommendation for payment
of dividends has been made.
Options
No options over issued shares or interests in the Company were granted during or since the end of the
financial year and there were no options outstanding at the end of the financial year.
Indemnification of Officer or Auditor
No indemnities have been given or insurance premiums paid, during or since the end of the financial
year, for any person who is or has been an officer or auditor of the Company.
Proceedings on Behalf of the Company
No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in
any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the
company for all or any part of those proceedings.
The Company was not a party to any such proceedings during the year.
Signed in accordance with a resolution of the Board of Directors :
Dilip Shukla Virendra Jain
Dated this 25th June, 2004 Director Director
Independent Audit Report
To the members of Sarbags Pty Ltd
Scope
The financial report and directors responsibility
The Financial report comprises the statement of financial position, statement of financial performance,
statement of cash flows, accompanying notes to the financial statements, and the directors declaration
for Sarbags Pty Limited (the Company), for the year ended 31st March, 2004.
The directors of the Company are responsible for the preparation and true and fair presentation of the
financial report in accordance with the Corporations Act, 2001. This includes responsibility for the
maintenance of adequate accounting records and internal controls that are designed to prevent and
detect fraud and error, and for the accounting policies and accounting estimates inherent in the financial
report.
Audit approach
We conducted an independent audit in order to express an opinion to the members of the Company. Our
audit was conducted in accordance with Australian Auditing Standards in order to provide reasonable
assurance as to whether the financial report is free of material misstatement. The nature of an audit is
influenced by factors such as the use of professional judgement, selective testing, the inherent limitations
of internal control, and the availability of persuasiva rather than conclusive evidence. Therefore, an
audit cannot guarantee that all material misstatements have been detected.
We performed procedures to assess whether in all material respects the financial report presents fairly,
in accordance with the Corporation Act, 2001 including compliance with Accounting Standards and
other mandatory financial reporting requirements in Australia, a view which is consistent with our
understanding of the Companys financial position and of its performance as represented by the results
of its operations and cash flows.
We formed our audit opinion on the basis of these procedures, which included :
examining, on a test basis, information to provide evidence supporting the amounts and
disclosures in the financial report, and
assessing the appropriateness of the accounting policies and disclosures used and the
reasonableness of significant accounting estimates made by the directors.
While we considered the effectiveness of managements internal controls over financial reporting when
determining the nature and extent of our procedures, our audit was not designed to provide assurance
on internal controls.
Independence
In conducting our audit we followed applicable independence requirements of Australian professional
ethical pronouncements and the Corporations Act 2001.
Audit opinion
In our opinion, the financial report of Sarbags Pty Limited is in accordance with :
(a) the Corporations Act 2001, including:
(i) giving a true and fair view of the Companys financial position as at 31 March, 2004 and of its
performance of the year ended on that date; and
(ii) complying with Accounting Standards in Australia and the Corporations Regulations 2001;
and
(b) other mandatory financial reporting requirements in Australia.
GOULD RALPH & COMPANY
Greg C Ralph M. Com FCA
Partner
Sydney, 25th June, 2004.
Liability is limited by the Accountants Scheme pursuant to the NSW Professional Standards Act, 1994.
35
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Sarbags Pty Ltd
Statement of Financial Performance
For the year ended 31 March 2004
Notes 2004 INR 2003 INR
$ (in lakhs) $ (in lakhs)

Sales revenue 3,045,843 969.19 2,977,249 808.62
Other revenues from ordinary activities 29,619 9.42 4,932 1.34

3,075,462 978.61 2,982,181 809.96
Cost of Sales (2,211,748) (703.78) (2,353,917) (639.32)
Distribution expenses (49,123) (15.63) (66,226) (17.99)
Marketing expenses (186,957) (59.49) (177,604) (48.24)
Administrative expenses (194,571) (61.91) (158,197) (42.97)
Other expenses from ordinary activities (24,356) (7.75) (40,975) (11.13)

(2,666,755) (848.56) (2,796,919) (759.65)
Borrowing costs expense 2 (4,021) (1.28) -
Profit from ordinary activities
before income tax expense 404,686 128.77 185,262 50.31
Income tax expense relating to ordinary
activities 3 (141,667) (45.08) (47,480) (12.90)
Profit from ordinary activities after
related income tax expense 2 263,019 83.69 137,782 37.41
Net exchange difference on
translation of financial report of self-
sustaining foreign operations 15 (2,854) (0.91) 28,174 7.65

Total changes in equity other than
those resulting from
transactions with owners as owners 14 260,165 82.78 165,956 45.06

The accompanying notes form part of these financial statements.
Statement of Financial Performance has been converted at the average rate for 12 months ended 31st March,
2004. being : 1A$ = Rs. 31.82 and for the 12 months ended 31st March, 2003 being : 1 A$ = Rs. 27.16
Statement of Financial Position
As at 31 March 2004

CURRENT ASSETS
Cash assets 4 387,049 129.08 226,549 64.93
Receivables 5 347,793 115.99 378,541 108.49
Inventories 6 415,035 138.41 642,220 184.06

TOTAL CURRENT ASSETS 1,149,877 383.48 1,247,310 357.48

NON-CURRENT ASSETS
Property,plant and equipment 7 3,929 1.31 3,934 1.13
Intangible assets 8 166,682 55.59 177,079 50.75
Deferred tax assets 9 6,131 2.04 4,382 1.26

TOTAL NON-CURRENT ASSETS 176,742 58.94 185,395 53.14

TOTAL ASSETS 1,326,619 442.42 1,432,705 410.62

CURRENT LIABILITIES
Payables 10 148,043 49.37 422,193 121.00
Current tax liabilities 11 77,111 25.72 53,432 15.31
Provisions 12 15,438 5.15 4,606 1.32

TOTAL CURRENT LIABILITIES 240,592 80.24 480,231 137.63

NON-CURRENT LIABILITIES
Payables 10 240,000 80.04 366,612 105.07

TOTAL NON-CURRENT LIABILITIES 240,000 80.04 366,612 105.07

TOTAL LIABILITIES 480,592 160.28 846,843 242.70

NET ASSETS 846,027 282.14 585,862 167.92

EQUITY
Contributed equity 13 460,000 153.41 460,000 131.84
Reserves 15 25,320 8.44 28,174 8.07
Retained profits 16 360,707 120.29 97,688 28.01

TOTAL EQUITY 14 846,027 282.14 585,862 167.92

Statement of Financial Position has been converted at the closing rate of 1 A$ = Rs. 33.35 and opening
balances are converted at 1A$ = Rs. 28.66.
Statement of Cash Flows
For the year ended 31 March 2004

CASH FLOW FROM OPERATING ACTIVITIES
Receipts from customers 3,119,176 992.52 3,126,271 847.52
Payments to suppliers and employees (2,732,707) (869.55) (3,006,956) (816.69)
Borrowing costs (4,021) (1.28)
Income tax paid (119,737) (38.10)

Net cash provided by operating activities 20 (b) 262,711 83.59 119,315 30.83

CASH FLOW FROM INVESTING ACTIVITIES
Payment for property,plant and equipment (2,211) (0.77) (324) (0.09)

Net cash used in investing activities (2,211) (0.77) (324) (0.09)

CASH FLOW FROM FINANCING ACTIVITIES
Repayment of borrowings (100,000) (18.67)

Net cash used in financing activities (100,000) (18.67)

Net increase in cash held 160,500 64.15 118,991 30.74
Cash at beginning of financial year 226,549 64.93 107,558 34.19

Cash at end of financial year 20 (a) 387,049 129.08 226,549 64.93

Notes to the Financial Statements For the year ended 31 March 2004
1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
This financial report is a special purpose financial report prepared in order to
satisfy the financial report preparation requirements of the Corporations Act
2001.The directors have determined that the company is not a reporting entity.
The financial report is for the entity Sarbags Pty Limited as an individual
entity.Sarbags Pty Limited is a company, incorporated and domiciled in Australia.
The financial report has been prepared in accordance with the requirements of
the Corporations Act 2001,and all applicable Accounting Standards,with the
exception of :
AASB 1017 : Related Party Disclosures
AASB 1033 : Presentation and Disclosure of Financial Instruments
The report is also prepared on an accruals basis and is based on historic costs
and does not take into account changing money values or,except where
specifically stated,current valuations of non-current assets.
The following specific accounting policies,which are consistent with the previous
period unless otherwise stated,have been adopted in the preparation of this
report :
(a) Income Tax
The company adopts the liability method of tax-effect accounting whereby
the income tax expense is based on the profit from ordinary activities
adjusted for any permanent differences.
Timing differences,which arise due to the different accounting periods in
which items of revenue and expense are included in the determination of
accounting profit and taxable income are brought to account either as
provision for deferred income tax or as a future income tax benefit at the
rate of income tax applicable to the period in which the benefit will be
received or the liability will become payable.
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Sarbags Pty Ltd
Future income tax benefits are not brought to account unless realisation
of the asset is assured beyond any reasonable doubt.Future income tax
benefits in relation to tax losses are not brought to account unless there is
virtual certainty of realisation of the benefit.
The amount of benefits brought to account or which may be realised in the
future is based on the assumption that no adverse change will occur in
income taxation legislation,and the anticipation that the company will derive
sufficient future assessable income to enable the benefit to be realised
and comply with the conditions of deductibility imposed by the law.
(b) Inventories
Inventories are measured at the lower of cost and net realisable value.
Net realisable value is determned on the basis of each inventorys normal
selling pattern.Expenses of marketing,selling and distribution to customers
are estimated and are deducted to establish net realisable value.
(c) Property, Plant and Equipment
Each class of property plant and equipment is carried at cost or fair
value,less where applicable,any accumulated depreciation.
Plant and equipment
Plant and equipment is measured on the cost basis.
Depreciation
The depreciation rates and useful lives used for each class of depreciable
assets are :
Class of fixed asset Depreciation rates/useful lives Depreciation basis
Office Equipment 10 -33.33 % Straight Line
(d) Intangibles
Goodwill
Goodwill is initially recorded at the amount by which the purchase price for
a business exceeds the fair value attributed to its net tangible assets at
date of acquisition.Goodwill is amortised on a straight line basis over the
period of 20 years.
(e) Foreign Currency Transactions and Balances
Foreign currency transactions during the financial year are converted to
Australian currency at the rates of exchange applicable at the dates of the
transactions.Amounts receivable and payable in foreign currencies at
balance date are converted at the rates of exchange ruling at that date.
The assets and liabilities of the overseas controlled branch,which is self
sustaining,is translated at financial year-end rates and operating results
are translated at the average rate for the year.Gains and losses arising on
translation are taken directly to the foreign currency translation reserve.
(f) Employee Benefits
Provision is made for the companys liability for employee benefits arising
from services rendered by employees to balance date.Employee benefits
expected to be settled within one year together with benefits arising from
wages and salaries,annual leave and sick leave which will be settled after
one year,have been measured at the amounts expected to be paid when
the liability is settled plus related on-costs.
Contributions are made by the company to an employee superannuation
fund and are charged as expenses when incurred.
(g) Cash
For the purposes of the Statement of Cash Flows,cash includes cash on
hand and at call deposits with banks or financial institutions,investments
in money market instruments maturing within less than two months and
net of bank overdrafts.
(h) Revenue
Revenue from sale of goods is recognised (net of returns,discounts and
allowances)when control of the goods has passed to the buyer.
Interest revenue is recognised on a proportional basis taking into account
the interest rates applicable to the financial assets.
Other revenue is recognised when the right to receive the revenue has
been established.
All revenue is stated net of the amount of goods and services tax (GST).
(i) Goods and Services Tax (GST)
Revenues,expenses and assets are recognised net of the amount of
GST,except where the amount of GST incurred is not recoverable from the
Australian Taxation Office.In these circumstances the GST is recognised
as part of the cost of acquisition of the asset or as part of an item of
expense.Receivables and payables in the Statement of Financial Position
are shown inclusive of GST.
(j) Comparative Figures
Where required by Accounting Standards comparative figures have been
adjusted to conform with changes in presentation for the current financial
year
Note 2004 INR 2003 INR

NOTE 2 : PROFIT FROM ORDINARY ACTIVITIES

Profit (losses)from ordinary activities before income
tax expenses has been determined after :
(a) Expenses :
Borrowing costs 4,021 1.28
Depreciation of property,plant and equipment 2,216 0.71 2,734 0.68
Amortisation of non-current assets 10,397 6.90 11,028 2.68
Bad and doubtful debts 2,338 0.74

Remuneration of the auditors for :
- Audit and other services 24,973 7.95 25,581 6.95

Foreign currency translation losses (gains) (2,001) 0.57

NOTE 3 : INCOME TAX EXPENSE
The prima facie tax payable on profit from ordinary
activities before income tax is reconciled to the income
tax expense as follows :
Prima facie income tax payable on profit from ordinary
activities before income tax at 30.0%(2003 -30.0%) 121,406 38.63 55,579 15.10
Add :
Tax effect of :
- amortisation of goodwill 3,119 0.99 3,308 0.90
- Tax losses recouped (9,960) (2.71)
- Difference in foreign income tax rate 5,806 1.85 (1,827) (0.50)
- other non-allowable items 380 0.11
Under provision for income tax in prior year 11,336 3.61
Income tax expense attributable to profit
from ordinary activities 141,667 45.08 47,480 12.90

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Sarbags Pty Ltd

$ (in lakhs) $(in lakhs)
NOTE 4 : CASH ASSETS

Cash at bank 387,049 129.08 226,549 64.93

NOTE 5 : RECEIVABLES
CURRENT
Trade debtors 328,978 108.49 357,800 92.46

Other debtors 6,500 2.59 20,741 16.03
Amounts receivable from :
- Controlling Entity 12,315 4.91

18,815 7.50 20,741 16.03

347,793 115.99 378,541 108.49

NOTE 6 : INVENTORIES
CURRENT
Finished goods at cost 415,035 138.41 642,220 184.06

NOTE 7 : PROPERTY,PLANT AND EQUIPMENT
PLANT AND EQUIPMENT
(a) Office equipment
At cost 9,403 2.57 7,232 1.81
Less: Accumulated Depreciation (5,474) (1.26) (3,298) (0.68)

3,929 1.31 3,934 1.10

Total Property,plant and equipment 3,929 1.31 3,934 1.13

NOTE 8 : INTANGIBLE ASSETS
Goodwill at cost 195,000 48.99 195,000 48.99
Less : Accumulated amortisation (28,318) 6.60 (17,921) 1.76

166,682 55.59 177,079 50.75

NOTE 9 : TAX ASSETS
Future income tax benefits -deferred
- Timing differences 6,131 2.04 4,382 1.26

NOTE 10 : PAYABLES
CURRENT
Unsecured liabilities
Trade creditors 48,299 16.11 307,197 88.04
Sundry creditors and accruals 47,957 15.99 71,679 20.54
Goods and services tax payable 51,787 17.27 43,317 12.42

148,043 49.37 422,193 121.00

NON-CURRENT
Unsecured liabilities
Amounts payable to :
- Controlling Entity 240,000 80.04 366,612 105.07


NOTE 11:TAX LIABILITIES

CURRENT
Income tax 77,111 25.72 53,432 15.31
NOTE 12 : PROVISIONS
CURRENT
Employee benefits (a) 15,438 5.15 4,606 1.32
(a) Aggregate employee benefits liability 15,438 5.15 4,606 1.32
(b) Number of employees at year end 1 1
NOTE 13:CONTRIBUTED EQUITY
50,000 (2003:50,000)Ordinary shares
at $1.00 each (a) 50,000 16.67 50,000 14.33
410,000 (2003:410,000) Non cumulative
redeemable preference shares at $1.00 each (b) 410,000 136.74 410,000 117.51

460,000 153.41 460,000 131.84

(a) Ordinary shares
Ordinary shares have the right to receive dividends as declared and,in the event
of winding up the company,to participate in the proceeds from the sale of all
surplus assets in proportion to the number of and amount paid up on shares
held.
Ordinary shares entitle the holder to one vote,either in person or by proxy,at a
meeting of the company.
(b) Non cumulative redeemable preference shares
These shares can be redeemed at the option of the companys directors.The
redemption value is to be determined by the directors at the time of
redemption.There is no fixed date of redemption.
Holders are entitled to receive a non-cumulative dividend of 1%per annum on
the par value of the shares.Such dividends are at the discretion of the companys
directors,and subject to their being sufficient profit to pay the dividend,prior to
any ordinary share dividend being declared.
There are no voting rights attached to these shares.
In the event of winding up of the Company,these shares rank above the ordinary
equity and are entitled to the proceeds on liquidation only to the extent of the
face value of the shares.
NOTE 14 : EQUITY
Total equity at the beginning of the financial year 585,862 167.92 419,906 120.35
Total changes in equity recognised in the statement
of financial performance 260,165 114.22 165,956 47.57

Total equity at the reporting date 846,027 282.14 585,862 167.92

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Sarbags Pty Ltd

NOTE 15 : RESERVES
Foreign Currency Reserve (a) 25,320 8.44 28,174 8.07

(a) Foreign currency reserve
Movements during the financial year :
Opening balance 28,174 8.07
Adjustment arising from the translation of
foreign controlled entities financial statements (2,854) 0.37 28,174 8.07

Closing balance 25,320 8.44 28,174 8.07

The foreign currency reserve is used to capture
unrealised gains / losses from transactions of a
self sustaining foreign operation.
NOTE 16 : RETAINED PROFITS
Retained profits/(accumulated losses)at the
beginning of the financial year 97,688 28.01 (40,094) (10.36)
Net profit (loss)attributable to members of the entity 263,019 92.28 137,782 38.37

Retained profits at the end of the financial year 360,707 120.29 97,688 28.01

NOTE 17 : RELATED PARTY TRANSACTIONS
(a) The directors of Sarbags Pty Ltd during the year were -Mr Dilip Shukla and
Mr. Virendra Jain.
(b) Purchases from Jai Corp Ltd. (the ultimate parent entity)were made under normal
commercial tems and conditions.
(c) Jai Corp Ltd. (the ultimate parent entity)has provided an interest free loan to
Sarbags totalling to $240,000, at balance date,with no fixed repayment date. A
current receivable from Jai Corp Ltd. amounted to $12,315 at balance date.
(d) The ultimate parent entity is Jai Corp Limited,incorporated in India.
NOTE 18 : ECONOMIC DEPENDENCE
The company is economically dependent on its parent company for the supply of
inventory. During the year approximately 99%of the inventory purchases were made
from Jai Corp Ltd.
NOTE 19 : SEGMENT REPORTING
Primary reporting -Geographical segments
The Company has the following two geographical segments:
- Australia
- New Zealand
2004 Australia New Zealand Total INR

$ $ $
REVENUE
External Sales 2,571,758 474,085 3,045,843 969.19

Total Segment Revenue 2,571,758 474,085 3,045,843 969.19

Total revenue from ordinary activities 3,045,843 969.19


$ $ $
RESULT
Segment result 245,685 159,001 404,686 128.77

before income tax expense 404,686 128.77
Income tax expense (141,667) (45.08)

Profit from ordinary activities after income
tax expense 263,019 83.69

Net Profit 263,019 83.69

Segment assets 1,084,713 241,906 1,326,619 442.42

Segment liabilities 445,639 34,953 480,592 160.28


$ $ $
REVENUE
External Sales 2,425,979 551,270 2,977,249 808.62

Total Segment Revenue 2,425,979 551,270 2,977,249 808.62

Total revenue from ordinary activities 2,977,249 808.62

RESULT
Segment result 71,109 114,152 185,261 50.31

before income tax expense 185,261 50.31
Income tax expense (47,480) (12.90)

after income tax expense 137,781 37.41

Net Profit 137,781 37.41

Segment assets 1,259,949 172,756 1,432,705 410.62

Segment liabilities 778,401 68,442 846,843 242.70

The company operates in one business segment, being the importation and distribution
of heavy duty storage bags.
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Sarbags Pty Ltd

NOTE 20 : CASH FLOW INFORMATION

(a) Reconciliation of cash
Cash at the end of the financial year as shown in
the statement of Cash Flows is reconciled to the
related items in the statement of financial position
as follows :
Cash at bank 387,049 129.08 226,549 64.93

(b) Reconciliation of cash flow from operations with
profit from ordinary activities after income tax
Profit from ordinary activities after income tax 263,019 83.69 137,782 37.40
Non-cash flows in profit from ordinary activities
Amortisation 10,397 6.90 11,028 2.68
Depreciation 2,216 0.71 2,734 0.68
Transfer to Foreign currency reserve (2,854) (0.91)
Intangible and Inventory adjustment 74,734 21.42
Changes in assets and liabilities
Decrease in receivables 43,063 12.34 127,198 36.45
(Increase) / decrease in inventories 227,185 75.77 (16,088) (4.60)
Decrease in payables (313,077) (104.41) (220,987) (63.33)
Increase in income tax payable 23,679 7.90
Decrease in deferred taxes (1,749) (0.58)
Increase in provisions 10,832 3.60 2,914 0.84

Cash flows from operations 262,711 85.02 119,315 31.54

NOTE 21 : COMPANY DETAILS
The registered office of the company is :
Sarbags Pty Limited
19 Casino Road
Greystanes NSW 2145
Directors Declaration
The directors have determined that the company is not a reporting entity.The directors
have determined that this special purpose financial report should be prepared in
accordance with the accounting policies described in Note 1 to the financial statements.
The directors of the company declare that :
1. The financial statements and notes,as set out on pages 3 to 14 are in accordance
with the Corporations Act 2001:
(a) comply with Accounting Standards as described in Note 1 to the financial
statements and the Corporations Regulations 2001;and
(b) give a true and fair view of the financial position as at 31 March 2004 and
of the performance for the financial year ended on that date of the company
in accordance with the accounting policies described in Note 1 to the
financial statements.
2. In the directorsopinion there are reasonable grounds to believe that the company
will be able to pay its debts as and when they become due and payable.
This declaration is made in accordance with a resolution of the directors.
On behalf of the Board
Dilip Shukla Virendra Jain
Dated this 25th day of June, 2004 Director Director
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AUDITORS REPORT TO THE BOARD OF DIRECTORS OF JAI CORP LIMITED ON THE CONSOLIDATED FINANCIAL
STATEMENTS OF JAI CORP LIMITED AND ITS SUBSIDIARY
We have examined the attached Consolidated Balance Sheet of Jai Corp Limited and its subsidiary as at March 31st 2004, and
also the Consolidated Profit and Loss Account and Consolidated Cash Flow Statement for the year ended on that date. These
Financial Statements are the responsibility of management of Jai Corp Limited. Our responsibility is to express an opinion on
these financial statements based on our audit.
1. We conducted our audit in accordance with the generally accepted auditing standards in India. These standards require that
we plan and perform the audit to obtain reasonable assurance whether the financial statements are prepared, in all material
respects, in accordance with an identified financial reporting framework and are free of material mis-statements. An audit
includes, examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating
the overall financial statements. We believe that our audit provides a reasonable basis for our opinion.
2. We did not audit the financial statements of Sarbags Pty. Ltd., whose financial statements reflect total assets of Rs. 433.57
Lacs as at March 31st 2004 and total revenues of Rs. 984.18 Lacs for the year ended on that date. These financial statements
have been audited by other auditor whose reports has been furnished to us, and our opinion, in so far as it relates to the
amounts included in respect of subsidiary, is based solely on the report of the other auditor.
3. We report that the Consolidated Financial Statement have been prepared by the Company in accordance with the requirements
of Accounting Standard (AS) 21 Consolidated Financial Statements, issued by the Institute of Chartered Accountants of
India and on the basis of the separate audited financial statements of Jai Corp Limited and its subsidiary included in the
Consolidated Financial Statements.
4. On the basis of the information and explanations given to us and on the consideration of the separate audit report on individual
audited financial statements of the Jai Corp Limited and its subsidiary, we are of the opinion that :-
a) The Consolidated Balance Sheet gives a true and fair view, of the consolidated state of affairs of Jai Corp Limited as at
March 31st, 2004.
b) The Consolidated Profit and Loss Accounts gives a true and fair view of the consolidated results of the operation of Jai
Corp Limited for the year ended on that date and
c) The Consolidated Cash Flow Statement gives a true and fair view, of the Consolidated Cash Flow of Jai Corp Limited for
the year ended on that date.
R. KORIA
Dated : 29th June 2004 Membership No. 35629
41
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CONSOLIDATED BALANCE SHEET
AS AT 31ST MARCH, 2004
(Rs.in Lacs)
Schedule AS AT AS AT
31.03.2004 31.03.2003

SOURCES OF FUNDS
Shareholders Funds
Share Capital A 862.91 862.91
Reserves & Surplus B 24,484.50 21,554.88

25,347.41 22,417.79
Loan Funds
Secured Loans C 56.10 378.52
Unsecured Loans D 362.95 443.26

419.05 821.78
Net Deferred Tax Liability 1,206.81 1,057.73
(Refer Note 2 of Schedule P)
Total 26,973.27 24,297.30

APPLICATION OF FUNDS
Fixed Assets
Gross Block E 20,959.18 20,267.11
Less : Depreciation 11,805.73 11,161.21

Net Block 9,153.45 9,105.90
Capital Work-in-Progress 1,102.01 1,114.02

10,255.46 10,219.92
Investments 4,604.25 2,601.44
Current Assets, Loans
and Advances F
Inventories 8,236.65 6,335.88
Sundry Debtors 1,360.47 2,101.00
Cash & Bank Balances 240.49 187.71
Loans & Advances 3,471.94 3,753.71

13,309.55 12,378.30

Less : Current Liabilities
and Provisions G
Current Liabilites 1,166.37 904.60
Provisions 39.98 19.13

1,206.35 923.73

Net Current Assets 12,103.20 11,454.57
Miscellaneous Expenditure H 10.36 21.37
(To the extent not written off
or adjusted)
26,973.27 24,297.30

Notes on Accounts &
Contingent Liabilities P
R. KORIA
Mumbai, 29th June, 2004 D. V. IYER Company Secratary
CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE
YEAR ENDED 31ST, MARCH 2004
(Rs. in Lacs)
SCHEDULE Year Ended Year Ended
31.03.2004 31.03.2003

INCOME
Turnover I 22,131.62 22,849.81
Less: Excise duty recovered on Sales 1,942.23 1,983.23

Net Turnover 20,189.39 20,866.58

Other Income J 1,138.90 746.53
Increase in Stocks K 968.04 1,465.01

22,296.33 23,078.12

EXPENDITURE
Purchases and Raw Materials Consumed L 14,004.41 15,475.10
Employees Remuneration and Benefits M 898.08 804.00
Manufacturing, Selling & Administrative
Expenses N 3,746.36 3,903.65
Finance Charges O 33.93 42.79
Excise Duty (6.98) 67.55
Depreciation 837.86 903.61

19,513.66 21,196.70
Less : Pre-operative Expenses
of Projects net 55.79

Net Expenditure 19,513.66 21,140.91

PROFIT FOR THE YEAR BEFORE TAX
AND EXTRA ORDINARY ITEMS 2,782.67 1,937.21
ADD : Extra Ordinary Items 1,327.00
PROFIT FOR THE YEAR BEFORE TAX 4,109.67 1,937.21
Less : Provision for Taxation
Current Tax 1,058.91 294.09
Deffered Tax 148.82 (115.12)
(Refer Note 2 of Schedule P )

PROFIT FOR THE YEAR AFTER TAX 2,901.94 1,758.24
Balance brought forward from last year 2,516.42 820.22
Prior Period Adjustments (Net) 0.77 18.83
26.91 97.20

AMOUNT AVAILABLE FOR APPROPRIATIONS 5,446.04 2,694.49
APPROPRIATIONS

SURPLUS CARRIED TO BALANCE SHEET 5,170.67 2,516.42

Basic & Diluted earning per equity
share of Rs. 10 each.
(Including extraordinary items) 33.64 19.55
(Excluding extraordinary items) 23.70 19.55
(Refer Note No. 3 of Schedule P)
Notes on Accounts & Contingent Liabilities P
R. KORIA
Mumbai, 29th June, 2004 D. V. IYER Company Secratary
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SCHEDULES FORMING PART OF THE CONSOLIDATED BALANCE SHEET
(Rs.in Lacs)
AS AT AS AT
31.03.2004 31.03.2003

SCHEDULE A
SHARE CAPITAL
AUTHORISED
2,00,00,000 Equity Shares of Rs. 10 each 2,000.00 2,000.00
15,000 1% Non-Cumulative Non-Participating
Redeemable Preference Shares of
Rs. 100 each 15.00 15.00
4,85,000 Unclassified Shares of Rs. 100 each 485.00 485.00

2,500.00 2,500.00

ISSUED AND SUBSCRIBED
8631400 Equity Shares of Rs. 10 each 863.14 863.14

PAID UP
8626940 Equity Shares of Rs. 10 each Fully Paid Up 862.69 862.69
Add: Forfieted Share(Amount Originally
Paid up on 4460 Shares) 0.22 0.22

862.91 862.91

NOTES :
(A) Of the above shares
(i) 24,00,000 Equity Shares have been allotted as Bonus Shares by
Capitalisation of Free Reserves.
(ii) 49,63,522 Equity Shares have been allotted, without payment being
received in cash, pursuant to the Scheme of Amalgamation of Sipta Coated
Steels Limited and Comet Steels Limited with the Company.
(B) In terms of scheme of arrangement as approved by the honourable High Court
Judicature at Mumbai vide its order dated 6th June 2002, the company has
purchased and cancelled 632122 Equity Shares during the year ended 31st
March, 2003.
(Rs.in Lacs)
AS AT AS AT
31.03.2004 31.03.2003

SCHEDULE B
RESERVES & SURPLUS
Capital Reserve
As per last Balance Sheet 92.17 92.17
Equity Share Premium
Less; Utilised for buy back of equity shares
of the company 158.03
6,068.22 6,068.22
General Reserve
Add : Transferred from Profit and Loss Account 275.37 178.07

13,153.44 12,878.07
Profit and Loss Account 5,170.67 2,516.38

24,484.50 21,554.84

SCHEDULE C
SECURED LOANS
Working Capital Loans from Banks 56.10 378.52

56.10 378.52

NOTE :
Above loans are secured by hypothecation of the Companys inventories and book
debts and further secured by way of a negative lien on immoveable fixed assets. The
loans are also guaranteed by some of the Directors of the Company in their personal
capacity.
SCHEDULE D
UNSECURED LOANS
Interest Free Sales-tax Loan 362.95 443.26

362.95 443.26

Note :
Amount repayable within one year Rs. 120.63 Lacs (Previous Year Rs. 80.31 Lacs).
SCHEDULE - E
FIXED ASSETS
(Rs. in Lacs)
GROSS BLOCK DEPRECIATION NET BLOCK
PARTICULARS AS AT Additions Deductions/ AS AT UPTO For The Deductions/ UPTO AS AT AS AT
01.04.2003 Adjustments 31.03.2004 31.03.2003 Year Adjustments 31.03.2004 31.03.2004 31.03.2003
GOODWILL 47.33 10.05 8.39 48.99 4.36 7.06 4.52 6.90 42.09 42.97
FREEHOLD LAND 850.01 274.77 575.24 575.24 850.01
LEASEHOLD LAND 451.86 451.86 451.86 451.86
BUILDINGS 3,724.90 27.06 2.81 3,749.15 798.90 106.22 0.58 904.54 2,844.61 2,926.00
PLANT & MACHINERY 14,460.19 1,126.48 288.16 15,298.51 9,933.35 663.93 181.27 10,416.01 4,882.50 4,526.84
DRAWINGS & DESIGNS 65.38 65.38 65.38 65.38
FURNITURE & FIXTURES 141.52 1.66 1.47 141.71 93.27 8.86 1.20 100.93 40.78 48.25
OFFICE EQUIPMENTS 283.55 22.32 2.97 302.90 154.46 25.95 1.86 178.55 124.35 129.09
VEHICLES 242.37 87.81 4.74 325.44 111.49 25.83 3.92 133.40 192.04 130.88
TOTAL 20,267.11 1,275.38 583.31 20,959.18 11,161.21 837.85 193.35 11,805.71 9,153.47 9,105.90
PREVIOUS YEAR 18,105.68 2,422.18 260.75 20,267.11 10,423.37 903.61 165.77 11,161.21 9,105.90
CAPITAL WORK IN PROGRESS 1,102.01 1,114.02
NOTES :-
1. Leasehold land includes Rs. 23.87 Lacs (Prevous Year Rs. 23.87 Lacs) in respect of which title is pending for transfer in the name of the company.
2. Building includes Rs.0.01 Lacs (Prevous Year Rs. 0.02 Lacs) being the value of shares in Co operative Housing Society Towards ownership of residential flats.
3. Capital Work-in-Progress includes :
i) Rs. Nil (Previous Year Rs.0.02 Lacs) on account of pre-operative expenses.
ii) Rs. 1.59 Lacs (Previous Year Rs.2.71 Lacs) on account of cost of construction material at site.
iii) Rs. 765.48 lacs ( Previous year Rs.614.53 lacs ) on account of advances made to the suppliers for capital goods.
4. Depreciation for the year includes Rs. .Nil ( Previous Year Rs. 0.46 Lacs ) capitalised as Pre-operative Expenses
5. Addition to Fixed assets & Capital Work in Progress includes Rs. Nil Lacs(Previous Year Rs.0.56 Lacs) on account of Exchange difference (net).
6. Elecrical Installation includes Rs. 25.40 lacs (previous year Rs. Rs. 25.40 Lacs) being the amount spent for erection of 11 KV underground cable feeder from khadoli
sub- station to Unit, the ownership of which vests with Electricity Deptt of Dadra & Nagar Haveli (a Union Teritory).
43
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SCHEDULES FORMING PART OF THE CONSOLIDATED BALANCE SHEET (Contd.)
(Rs.in Lacs)
AS AT AS AT
31.03.2004 31.03.2003

SCHEDULE F
CURRENT ASSETS, LOANS
AND ADVANCES
CURRENT ASSETS
INVENTORIES
(Certified and Valued by the Management)
Stores, Spares, Packing Materials, Fuel, etc. 598.16 651.62
Raw Materials 2,879.03 1,892.84
Scrap 73.67 144.16
Others ** 12.92 13.52

8,236.65 6,335.88
* includes realisable value of discarded
fixed assets Rs.1.54 lacs ( Previous year
Rs.1.54 lacs ).
SUNDRY DEBTORS
For a period of more than six months 19.71 120.93
Others 1,340.76 1,980.07

1,360.47 2,101.00
CASH AND BANK BALANCES
Cash in hand 2.47 0.80
Balances with Scheduled Banks
In Fixed Deposit Accounts * 64.05 69.05
Balances with Non Scheduled Banks **
Money in Transit 18.57

240.49 187.71
* Includes Rs.63.40 lacs Pledged with various Govt.
Deptts.( Previous year Rs 68.40 Lacs )
** Balances with Non Scheduled Banks in Current
Account compri ses Westpactrust, Aukl and &
Australias First Bank, Australia.
Maximum Balances outstanding during the Year is
Rs.55.27 Lacs & 124.10 Lacs respectively ( Previous
Year Rs. 47.80 & Rs. 68.12 Lacs respectively).
LOANS AND ADVANCES
Advances recoverable in cash or in kind or for
value to be received 2,152.85 2,731.15
Deposits 171.24 152.94
Balance with Customs & Excise Authorities 892.60 825.27
Income Tax (Net) 255.25 44.35

3,471.94 3,753.71

13,309.55 12,378.30

SCHEDULE G
CURRENT LIABILITIES AND PROVISIONS
CURRENT LIABILITIES
Sundry Creditors *
Small Scale Undertankings 13.65 1.34
(As Certified by the Management )
Others 357.31 251.11

370.96 252.45
Investors Education & Protection Fund
(I) Unclaimed Dividend** 19.64 18.12
(II) Unclaimed & Matured Deposit 0.06
(III) Unpaid Application Money 0.42
19.64
Unclaimed for Buy back of Shares 42.07 44.03
Other Liabilities 733.70 589.52
1,166.37 904.60
(Rs.in Lacs)
AS AT AS AT
31.03.2004 31.03.2003

PROVISIONS
Wealth Tax (Net) 4.75 4.80
Leave Encashment 15.39 11.19
Gratuity 19.84 3.14

39.98 19.13

1,206.35 923.73

* Includes Rs. 84.25 lacs ( previous year Rs.26.03 lacs ) for capital
expenditure
** The amount includes amount , due and outstanding, to be
credited to Investor Education and Protection Fund , Rs. 2.66
Lacs, which is since been paid.
SCHEDULE H
MISCLLANEOUS EXPENDITURE
Share Issue Expenses 10.36 21.37

10.36 21.37

(Rs.in Lacs)
31.03.2004 31.03.2003

SCHEDULE I
TURNOVER
Sales 21,818.85 22,635.33
Services 312.77 214.48

22,131.62 22,849.81

SCHEDULE J
OTHER INCOME
Dividend - Current Investments 237.93 166.38
(TDS Rs.Nil ( Previous year Rs. 17.46 lacs )
Profit on Sale of Fixed Assets (Net) 6.56
Profit on Sale of Current Investment(Net) 638.91 112.54
Sundry Balances W/Back(Net) 54.72
Exchange difference (Net) 30.14 54.47
Rent Received 17.78
Interest Received 178.48 254.60
(Tax deducted at Source Rs.13.04 lacs
(Previous year Rs.31.55 lacs )
Miscellaneous Income 35.66 97.26

1,138.90 746.53

44
G
SCHEDULES FORMING PART OF THE CONSOLIDATED PROFIT AND LOSS ACCOUNT (Contd.)
(Rs.in Lacs)
31.03.2004 31.03.2003

SCHEDULE K
INCREASE IN STOCKS
Closing Stock
Scrap 73.67 144.16
Others 11.38 11.98

4,757.92 3,789.88
Opening Stock
Scrap 144.16 35.47
Others 11.98 11.98

3,789.88 2,324.87

Increase in Stocks 968.04 1,465.01

SCHEDULE L
PURCHASES & RAW MATERIALS CONSUMED
Purchases 220.88 195.30
Raw Materials Consumed
Opening Stock 1,892.84 763.23
Add: Purchases 14,769.72 16,409.41

16,662.56 17,172.64
Less : Closing Stock 2,879.03 1,892.84

13,783.53 15,279.80

14,004.41 15,475.10

SCHEDULE M
EMPLOYEES REMUNERATION AND BENEFITS
Salaries, Wages and Perquisites 830.69 742.21
Contribution to Provident and Other Funds 36.73 33.92
Staff Welfare & amenities 12.58 9.72
Gratuity 18.08 18.15

898.08 804.00

(Rs.in Lacs)
31.03.2004 31.03.2003

SCHEDULE N
MANUFACTURING, SELLING & ADMINISTRATIVE EXPENSES
Power, Fuel and Water 1,366.02 1,421.22
Stores, Spares and Packing Materials 1,147.10 902.97
Job Work Charges 72.78 84.74
Repairs and Maintenance
Plant & Machinery 57.47 60.60
Buildings 18.50 11.29
Others 27.03 21.04
Rent 30.74 38.80
Rates and Taxes 12.04 21.67
Insurance 62.72 44.02
Legal, Professional and Consultancy Charges 131.71 67.44
Travelling and Conveyance 103.83 128.67
Advertisement, Publicity and Sales Promotion 77.47 61.16
Freight, Handling Charges and Octroi (Net) 260.40 442.41
Brokerage, Commission and Discount 70.73 87.47
Payment to Auditors 23.14 23.68
Preliminary Expenses Written Off 11.00 11.10
Provision for Diminution in value of Investments 28.14 306.33
Directors Sitting Fees 0.93 0.70
Charity and Donation 26.63 13.25
Bad Debts 5.33 0.04
Wealth Tax 2.00 2.00
Loss on Sale of Fixed Assets(Net) 9.12
Sundry Balance W. Off ( Net) 4.63
Other Expenses 196.90 153.05

3,746.36 3,903.65

SCHEDULE O
FINANCE CHARGES
Interest (On other than fixed loans) 15.53 28.20
Bank Charges 18.40 14.59

33.93 42.79

45
G
SCHEDULES FORMING PART OF THE CONSOLIDATED ACCOUNTS -
SCHEDULE Q
NOTES ON CONSOLIDATED ACCOUNTS AND CONTINGENT LIABILITIES
1. SIGNIFICANT ACCOUNTING POLICIES
A. The subsidiary company considered in the consolidated financial
Statements is :
Name of the Country of Proportion of
Subsidiary Incorporation ownership Interest
Sarbags Pty Ltd. Australia 100%
B. Principles of Consolidation
The Consolidated financial statements relate to Jai Corp Ltd. {The
company} and its subsidiary company. The Consolidated Financial
statements have been prepared on the following basis :
I ) The financial statements of the Company and its subsidiary company
have been combined on line-by-line basis by adding together the
book values of like items of assets, liabilities, income and expenses,
after fully eliminating intra-group balances and intra-group
transactions resulting in unrealized profits and losses.
II ) The consolidated financial statements have been prepared using
uniform Accounting policies for like transactions and other events in
similar circumstances with certain exception as mentioned below and
are presented to the extent possible, in the same manner as the
companys separate financial statements.
Item Particulars Amount Proportion to
Cost to the Cost of
(Rs.in Lacs) fixed Assets
Depreciation Sarbags Pty.Ltd. has (2.57) (0.0001%)
charged depreciation on
Office Equipment @7.5% &
33.30% as against
Schedule XIV rates
followed by the company.
III} The consolidated financial statements are prepared in Indian rupees.
The Indian rupee is the functional currency for Jai Corp Ltd.
However, for its foreign subsidiary the functional currency is Australian
Dollar. The translation of the functional currency into Indian rupees
{Reporting currency} is performed for liabilities and Current assets
using the current exchange rates in effect at the balance sheet date,
for revenues, costs and expenses, except amortisation of goodwill
and depreciation for which rate prevailing, on the date of acquisition
of assets is considered, using average exchange rates prevailing
during the reporting periods. For share capital and fixed assets
exchange rate prevailing at the date of the transaction have been
considered and resultant gain or loss is recognized in the profit and
loss account.
C. Other significant accounting policies :
These are set out under significant accounting policies of financial
statements of the Company, and Sarbags Pty Ltd.
2. The deferred tax liability as at 31st March 2004 comprises of the following :
(Rs. in Lacs)
As on As on
31.03.2004 31.03.2003
(i) Deferred Tax Liabilities
Related to fixed assets 1229.18 1168.92

(ii) Deferred Tax Assets :
Provision for diminution in value of investment 10.09 109.90
Disallowance under the Income tax Act,1961 10.79 0.04
Provision for Employees Entitlement 1.49 1.25

Total 22.37 111.19

Provision for deferred tax ( Net ) 1206.81 1057.73
3. Basic and Diluted Earnings per Share
2003-04 2002-03
(a) Net Profit available for equity
Share holder (Rs. in lacs ) 2901.94 1758.24
(Amount used as numerator )
(b) Weighted Average Number of equity 86,26,940 89,95,678
shares used as denominator for
calculating EPS
(c) Basic & Diluted Earning Per Share (Rs.)
Including Extraordinary item 33.64 19.55
Excluding extraordinary item 23.70 19.55
Reconciliation between Number of shares used
for calculating Basic & diluted earning per share
(a) No. of Share outstanding at the year end 86,26,940 86,26,940
(b) No. of Shares purchased and cancelled
during the year Nil 6,32,122
(c) Weighted average number of shares
used for calculating Basic & Diluted
earning per share 86,26,940 89,95,678
4. Related Party Disclosures :
List of related parties with whom transactions have taken place during the year:
i) Key Managerial Personnel and relatives of such personnel :
a) Shri J. K. Jain Chairman
b) Shri S. P. Jain Managing Director
c) Shri Virendra Jain Director ( in Parent and subsidiary co)
d) Shri V. S. Pandit Director (Works)
e) Shri Dilip Shukla Director ( in Subsidiary co.)
f) Shri Gaurav Jain Director (with effect from 12th March 2004)
ii) Enterprises over which persons described in (i) above and their relatives
are able to exercise significant influence( Other related parties ) :
a) Pet Fibres Ltd.
b) Polyole Fibres Pvt. Ltd.
c) Dotsons Steel Ltd.
d) Suniti Commercials Ltd.
e) Ridhi Synthetics Ltd.
f) Tufropes Pvt. Ltd.
g) Silvassa Pipes Pvt. Ltd.
h) Silvassa Polyplast India Pvt. Ltd.
i) Resin Distributors Pvt. Ltd.
j) Shriniwas ElectroSteels Ltd.
k) Polyplast Agencies Pvt Ltd.
l) Cellbion Interactive Pvt. Ltd.
m) Prime Wovens Ltd.
n) TechFab India
o) Polysil Pipes
iv) Transactions during the year with related parties :
(Rs. In lacs)
Nature of Transaction Key Other Total
(Excluding reimbursement ) Management Related
Personnel Parties

Fixed Assets
a) Sold during the year 89.40 89.40
(91.49) (91.49)
(21.24) (21.24)
Investments
a) Balance as at 1st April, 2003
() ()
c) Balance as at 31st March, 2004 899.99 899.99
() ()
Sundry Debtors as at 31st March,04 0.14 0.14
() ()
Loans & Advances
a) Given/adjusted during the year 122.00 122.00
(2216.08) (2216.08)
b) Returned during the year 732.00 732.00
(1516.08) (1516.08)
d) Balance as at 31st March, 2004 90.00 90.00
(700.00) (700.00)
Advance recoverable in cash or in Kind
Balance as at 31st March, 2004 35.53 35.53
(29.89) (29.89)
Current Liabilities
a) Other Liabilities As at 31.03.04 0.17 0.17
() ()
Sale of Goods 420.42 420.42
(38.17) (38.17)
Other Income
a) Job Work Income 244.16 244.16
(200.94) (200.94)
b) Discount on Raw Materials 156.23 156.23
(Deducted from Purchases) (202.96) (202.96)
c) Interest received 44.90 44.90
( 33.66) (33.66)
d) Miscellaneous Income 0.88 0.88
(2.94) (2.94)
Purchase of Goods 236.92 236.92
(63.52) (63.52)
46
G
SCHEDULES FORMING PART OF THE CONSOLIDATED ACCOUNTS - (Cond.)
(Rs. In lacs)
Nature of Transaction Key Other Total
(Excluding reimbursement ) Management Related
Personnel Parties

Expenditure
a) DirectosRemuneration & Perks 85.94 85.94
(98.16) (98.16)
b) Directors Sitting Fee 0.20 0.20
(0.16) (0.16)
d) Job work Charges 31.29 31.29
(52.38) (52.38)
e) Rent 12.00 12.00
(12.00) (12.00)
f) Other Expenses 1.12 1.12
(1.32) (1.32)
Note : No amount pertaining to related parties have been provided for as doubtful debts. Also no amount have been
written off or written back during the year. Figures in bracket represent previous year s amounts.
(iii) Loans and advances in the nature of Loans given to other related parties :
(A) Loans and Advances in the nature of Loans :
(Rs. in lacs)
Name of the Relationship Balance Balance Maximum amount
Company as at as at outstanding
31.03.2004 31.03.2003 during the year

Pet Fibres Ltd Director is 90.00 90.00
Polyplast Interested
Agencies Pvt Ltd. do - 200.00 200.00
Resin Distributors Pvt. Ltd. do - 500.00 500.00
Prime Wovens Ltd. do - 15.00
Punctual Trading Ltd. do - 7.25
Note : Loans and advances shown above, to other companies fall under the category of
Loans & Advances in nature of Loans where there is no repayment schedule.
(b) Investment in the shares of the company by the Loanee (Rs. in lacs)
Name of the Company Relationship Balance as at
31.03.2004

Pet Fibres Ltd. Director Interested 3,00,000 Shares of Rs. 10/- each.
5. Auditors Remuneration (Rs. in lacs)
2003-04 2002-03

Audit Fees 14.93 11.22
Tax Audit Fees 3.00 3.00
Certification Fees 3.39 2.70
Out of Pocket Expenses 0.30 0.62
Other capacity 1.52 6.14

23.14 23.68

(Rs. in lacs)
2003-04 2002-03

6. Directors Remuneration
Salary 80.53 79.57
Perquisite 5.41 18.59

85.94 98.16

7. (I) The company has discontinued its manufacturing operation at plastic processing unit,
situated at Rakholi ( Silvasa ) from Nov 2003. The Gross Block,Net Blocks and Capital
Work in progress at 31st March 2004 in respect of the above unit is Rs,674.67 Lacs & Rs
382.81 Lacs & Rs 4.88 Lacs respectively. As the realizable value of plant and machinery is
not determined the losses if any on this account will be accounted for as and when
determined.
(II) After the close of the financial year, the company has also discontinued its manufacturing
operations at plastic processing unit, situated at Masat (Silvasa) and Daman.
8. During the year the company has utilised sales tax exemption certificate ( Permited to claim
exemption in terms of entry E-11, of the schedule appended to Government of Maharashtra
notification U/s 41 of BST Act) for Rs. 61.66 Lacs (Previous Year Nil) and paid sales tax amounting
to Rs. 0.35 Lacs (Previous Year Nil) in respect of steel segment. As the amounts was not recovered
from the customers the same has not been adjusted against the sales.
9. Extraordinary items represents export incentives aggregating to Rs. 1327 Lacs, arising from
transfer of benefits under DEPB scheme, which pertains to the exports made during the year
2002-03. Due to the dispute with DGFT relating to classification of products under the EXIM
policy, the company could not receive these DEPB entitlements for its steel segment for the year
2002-03 and the same were received during the year ended 31st March 2004. As advised the
same has been considered as extraordinary item.
10. Hitherto the company was accounting for the benefits in respect of DEPB scheme
against the export made by it as and when the goods were imported against
them or the licence/credit were sold, as the case may be. From the Current
year, the benefits under DEPB Scheme are recognized in the Profit and Loss
account when the right to receive the DEPB credits as per the terms of the
schemes is established in respect of exports made. This change in accounting
policy has resulted an additional DEPB benefits of Rs. 301.13 Lacs for the year
ended 31st March 2004.Consequently the turnover and profit before tax for the
year ended 31st March 2004 is higher by Rs. 301.13 Lacs.
11. Segment information as per Accounting Standard 17 on Segment Reporting for the year ended 31st March 2004.
i) Information about Primary (Product wise) Segments.
Particulars Steel Plastic Processing Unallocated Total
2003-04 2002-03 2003-04 2002-03 2003-04 2002-03 2003-04 2002-03
Segment Revenue
External Turnover 15329.84 15978.12 6801.78 6871.69 22131.62 22849.81
Inter Segment Turnover
Gross Turnover 15329.84 15978.12 6801.78 6871.69 22131.62 22849.81
Less : Excise duty recovered 1294.29 1227.57 647.94 755.66 1942.23 1983.23
Net Turnover 14035.55 14750.55 6153.84 6116.03 20189.39 20866.58
Results
Segment Results 1975.75 194.49 1150.83 1623.62 3126.58 1818.11
Unallocated Corporate Income (Net) 600.62 (259.08) 600.62 (259.08)
Operating Profit/ (Loss) 1975.75 194.49 1150.83 1623.62 600.62 (259.08) 3727.20 1559.03
Interest Expenses 17.90 11.13 5.83 7.24 10.20 24.42 33.93 42.79
Interest/ Dividend Income 102.41 132.52 5.88 2.49 308.11 285.96 416.40 420.97
Income Tax 0.00 12.90 1207.73 166.07 1207.73 178.97
Net Profit/ (Loss) 2060.26 315.88 1150.88 1605.97 (309.20) (163.61) 2901.94 1758.24
Other Information
Segment Assets 13948.64 12296.00 6669.87 6530.04 20618.51 18826.04
Unallocated Corporate Assets 7561.11 5528.49 7561.11 5528.49
Total Assets 13948.64 12296.00 6669.87 6530.04 7561.11 5528.49 28179.62 24354.53
Segment Liabilities 1068.03 1426.85 274.03 231.45 1342.06 1658.30
Unallocated Corporate Liabilities 1490.15 1144.94 1490.15 1144.94
Total Liabilities 1068.03 1426.85 274.03 231.45 1490.15 1144.94 2832.21 2803.24
Capital Expenditure 269.08 276.04 594.31 860.84 400.00 38.03 1263.39 1174.91
Depreciation 507.09 647.34 314.85 251.27 15.93 5.00 837.87 903.61
Non - Cash Expenditure 0.64 0.74 10.36 10.36 28.14 306.33 39.14 317.43
ii) Notes :
(a) Segments have been identified and reported taking into account, the differing risks and returns, the organization structure and the internal reporting system. These are organized into two main
business segment based on products :
Steel :- The company is manufacturing GP/GC Coils/ Sheets at Steel unit located at Nanded ( Maharashtra )
Plastic Processing:- The company is manufacturing Woven sacks/ Fabrics at packaging units which are mainly located at Daman ( U.T.) and DNH ( U.T.)
Unallocated consists of expenses incurred at the corporate level which relates to the company as a whole, income from investments of surplus funds, Corporate assets includes Real Estate,
Investments and ICDs.
(b) Segment Revenue, Results, Assets and Liabilities include the respective amounts identifiable to each of the segments. Unallocated includes expenses incurred at the corporate level which
relates to the company as a whole.
47
G
SCHEDULES FORMING PART OF THE CONSOLIDATED ACCOUNTS - (Cond.)
iii) Secondary Segment Information (Geographical Segments)
(Rs. in lacs)
Particulars Within India Outside India Total
2003-04 2002-03 2003-04 2002-03 2003-04 2002-03
Segment Revenue 15742.09 14921.03 6389.53 7928.78 22131.62 22849.81
Segment Assets 27751.61 23695.64 428.01 1525.39 28179.62 25221.03
Capital Expenditure 1252.58 1174.82 10.81 0.09 1263.39 1174.91
12. NET PRE - OPERATIVE EXPENDITURE
(Rs.in lacs)
Particulars 2003-2004 2002-2003
Opening Balance (0.02) 119.86
Add :
Transferred from Profit & Loss Account Nil 55.79
(0.02) 175.65
Less :
Capitalised during the year (0.02) 175.67
Closing Balance Nil (0.02)
13. Contingent liabilities in respect of -
(Rs. In Lacs)
As At As at
31st March, 31st March,
2004 2003
(a) Guarantees given by Bankers 9.00 54.31
(b) claims not acknowledged as debts 370.43 374.86
(c) Estimated amount of contracts
remaining to be executed on capital
account and not provided for
(net of advances paid) 18.22 573.01
14. The consolidated financial statement have been prepared in accordance with
Accounting Standard {AS-21} Consolidated Financial Statements issued by
the Institute of Chartered Accountants of India. The previous years figures have
been regrouped, rearranged and reclassified wherever necessary.
R. KORIA
48
G
Consolidated Cash Flow Statement for the year ended 31st March, 2004
(Rs.in Lacs)
2003 - 2004 2002 - 2003
A. Cash Flow from Operating Activities
Net Profit after tax as per P & L Account 2,901.94 1,758.24
Extra Ordinary items 20.96 (43.58)
2,922.90 1,714.66
Adjusted for
Depreciation ( Net ) 837.86 903.15
Tax Provision 1,209.73 180.97
Effects of exchange rate change (0.17) 1.19
Loss / (Profit) on sale of investments ( Net ) (610.77) 193.79
Loss / (Profit) on sale/demolition of fixed assets ( Net ) 9.12 (6.56)
Finance Charges 33.93 42.79
Income/Interest on Investment (70.18) (119.58)
Dividend Income (237.93) 1,171.59 (166.38) 1,029.37
-
Operating Profit before Working Capital Changes 4094.49 2744.03
Adjusted for
Trade & Other Receivables (113.41) (1,286.76)
Inventories (1,900.77) (2,760.16)
Trade Payables 220.26 (199.61)

Cash generated from operations 2,300.57 (1,502.50)
Interest paid (23.98) (32.68)
Direct taxes paid (1,203.84) (152.05)

Cash Flow before extraordinary items 1,072.75 (1,687.23)
Extra Ordinary items 0.77 18.83

Net Cash from / (used in) Operating Activities 1,073.52 (1,668.40)

B. Cash Flow from Investing Activities
Purchase of Fixed Assets (1,205.15) (1,170.55)
Sale of Fixed Assets 380.84 8.20
Purchase of Investments (67,299.04) (25,921.09)
Sale of Investments 65,907.00 30,134.03
Loans 1,295.00 (1,234.78)
Income/Interest on Investment 65.85 64.89
Dividend Received 237.93 166.38

Net Cash ( used in ) / from Investing Activities (617.57) 2,047.08

C. Cash Flow from Financing Activities
Short term loans (Net) (322.42) (37.30)
Repayment of Long term loans (80.31) (76.03)
Buyback of Shares including Share Premium (1.96) (177.21)
Dividends Paid 1.52 0.35

Net Cash ( used in ) Financing Activities (403.17) (290.19)

Net Increase/(Decrease) in Cash and Cash Equivalents (A+B+C) 52.78 88.49
Opening Balance of Cash and Cash Equivalents 187.71 92.22
Closing Balance of Cash and Cash Equivalents 240.49 187.71
Notes :
1) Bracket indicates cash outflow.
2) Previous year figures have been regrouped wherever necessary.
R. KORIA
Jai Corp Limited
Regd. Office : A-3, M.I.D.C. Indl. Area, Nanded-431 603, Maharashtra.
ATTENDANCE SLIP
19
TH
ANNUAL GENERAL MEETING, 10TH SEPTEMBER, 2004
I hereby record my presence at the 19
TH
ANNUAL GENERAL MEETING of the Company at A-3, M.I.D.C. Indl.
Area, Nanded-431 603, Maharashtra on 10th September, 2004 at 2.00 p.m.
Folio No. : ................................................ DP ID* .......................................Client ID* .........................................
No. of Share held ..................................
...............................................................................................................................................................................
Full name of the Shareholder/Proxy (in block letters) Signature
Note : Shareholders attending the meeting in person or by Proxy are requested to complete the attendance slip
and hand over at the entrance of the hall.
Jai Corp Limited
Regd. Office : A-3, M.I.D.C. Indl. Area, Nanded-431 603, Maharashtra.
PROXY FORM
Folio No. : ................................................ DP ID* .......................................Client ID* .........................................
I/We....................................................................................................................................of
...................................................................................................................................in the district of
..................................................................being a member(s) of the above named Company, hereby appoint
.............................................................of........................................................... ........in the district of
................................................................ or failing him............................................ .................. of
........................................................... in the district of......................................... .............
as my/our proxy to vote for me/us on my/our behalf at the NINTEENTH ANNUAL GENERAL MEETING of the
Company to be held at A-3, M.I.D.C. Indl. Area, Nanded-431 603, Maharashtra., on 10th September 2004 at 2.00
p.m. and at any adjournment thereof.
Signed this ................................ day of ........................2004.
Signature...................
Note : 1. The proxy need not be a member.
2. The Proxy Form duly signed across revenue stamp should be deposited at the Registered Office of the
Company not later than 48 hours before the time of the meeting.
Re. 1
Revenue
Stamp
TEAR - HERE
T
E
A
R

-

H
E
R
E

BOOK - POST
If undelivered, please return to :
KARVY COMPUTERSHARE PRIVATE LIMITED
Unit : Jai Corp Limited
Karvy House,
46, Avenue 4, Street No.1
Banjara Hills, Hyderabad - 500 034.
19th
ANNtAL HFPOHT
2008 - 2004
19th
ANNtAL HFPOHT
2008 - 2004
HIGHLIGHTS
2003 - 2004 2002 - 2003 2001 - 2002 2000 - 2001 1999 - 2000
(Rs. in Lacs) (Rs. in Lacs) (Rs. in Lacs) (Rs. in Lacs) (Rs. in Lacs)
Sales, Services & Other Income 22,844.43 23288.67 20294.59 27259.12 31726.10
Depreciation 830.26 900.25 934.36 946.39 1030.98
Profit before tax 3918.53 1874.86 2295.55 3129.28 2187.68
Tax for the year 1159.31 166.07 148.09 237.00 100.00
Profit after tax 2759.22 1708.79 2147.46 2892.28 2087.68
Dividend (including tax thereon) Nil Nil Nil 224.48 226.11
Plough back including depreciation 3590.25 2627.87 3084.23 3616.06 2900.24
Shareholders Funds (Net Worth) 25202.97 22416.07 20812.50 19849.14 17179.47
Debt / Equity Ratio 0.00/1 0.00/1 0.00/1 0.00/1 0.00/1

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1

Current Year PreviousYear

a) Power and Fuel

ANNEXURE B TO DIRECTORS REPORT

Note 2004 INR 2003 INR

NOTE 2 : PROFIT FROM ORDINARY ACTIVITIES

Note 2004 INR 2003 INR

NOTE 4 : CASH ASSETS

Note 2004 INR 2003 INR

NOTE 11:TAX LIABILITIES

Note 2004 INR 2003 INR

2004 Australia New Zealand Total INR

2004 Australia New Zealand Total INR

2003 Australia New Zealand Total INR

Note 2004 INR 2003 INR

NOTE 20 : CASH FLOW INFORMATION

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