Online
Jain Irrigation Systems
BSE: 500219 | NSE: JISLJALEQS | ISIN: INE175A01020 | Plastics
- Directors Report
- Chairman's Speech
- Auditors Report
- Notes To Accounts
- Accounting Policy
- Finished Products
- Raw Materials
| Directors Report | Year End : Mar '08 |
The Directors present hereby their report on the business and
operations of the Company and the financial statements for the year
ended 31st March, 2008.
1. Financial Highlights Rs. in Million
Particulars 2007-08 2006-07
Domestic Sales 12,923 7.956
Export Sales & Services 4,5371 4,061
Other operating Income 134 68
Sales and Operating Income 17,594 12,085
Operating Profit 3,595 2,265
[Interest and Finance Charges 1,134 656
Depreciation and Amortisation 398 314
Amounts written off and provisions 7 2
Profit before taxation and exceptional items 2,056 1,294
Exceptional items (Service tax disallowed) 14 -
Provision for Tax
Deferred Tax (Asset)/Liability 570 283
Current Tax - provision 227 8
MAT Credit (227) -
Fringe Benefit 16 12
Profit for the year 1,455 991
Profit b/f from the previous year 1,386 716
Less Loss of Orient Vegetexpo Ltd. FY07 5 -
Balance 2,835 1,707
Out of which the Directors have
appropriated as under;
Proposed Dividend 194 168
Dividend Tax 33 29
General Reserve 145 100
Balance to be carried forward 2,463 1.386
Earnings Per Share
Basic 21.48 16.19
Diluted 21.41 16.19
2. Operations
The sales and operating income has grown at 45.6% to Rs.17,594 mn.
Thus, a fifth successive year of 40% plus growth is achieved. The
domestic sales grew at an impressive 62% to Rs. 12,923 mn on the back
drop of a robust demand in MIS/SIS and PE piping segments. The exports
grew at 12% this year at Rs. 4,537 mn despite a major slowdown in the
US housing markets. The other operating income almost doubled at Rs.134
mn. The other income declined marginally by about 5% at Rs.293 mn. The
operating profit at Rs.3,595 mn improved by 59% reflecting ever
improving resource utilization.
After providing for depreciation and amortization of Rs. 398 mn,
exceptional write off of Service Tax claimed but disallowed of Rs.14
mn, the interest and finance charges of Rs. 1,134 mn, deferred tax
liability of Rs.570 mn and Rs.16 mn of FBT, the profit for the year is
higher by about 47% at Rs.1,455 mn than the earlier year.
3. Dividend
An amount of Rs. 35 mn is payable on the Redeemable Preference Shares
issued by the Company as per predetermined coupon rate and an amount of
Rs.6 mn is payable as Dividend Distribution Tax on the said dividend.
The Board of Directors have recommended to the Shareholders for
declaration at the ensuing AGM a dividend of Rs.2.2 per share to the
eligible shareholders. The said dividend shall result in a cash outgo
of Rs. 159 mn while the outgo on the Dividend Distribution Tax on the
said dividend works out to Rs.27 mn.
4. Rehabilitation of Orient Vegetexpo Limited
Pursuant to approval of Shareholders on 29th September 2006, Scheme of
Rehabilitation, including amalgamation, was sanctioned by the Board For
Industrial and Financial Reconstruction (BIFR) on the 15th November
2007 and pursuant to it, the Company has allotted 713,316 Equity Shares
as per approved share swap ratio in the month of December 2007. This
amalgamation has increased the capacity of the vegetable dehydration
division by another 1,800 MT per annum.
5. Warrant Conversion, ZCCB Conversion and use of the proceeds
The 2.5 mn Share Warrants of Rs.398.5 each issued in the previous year
to the Promoters Group under the applicable SEBI(DIP) Guidelines on a
preferential basis were exercised for conversion and the subscribers
paid the balance amount of Rs. 897 mn on opting for conversion. The
Share Capital of the Company has gone up by Rs. 25 mn while the
Securities premium reserve has gone up by Rs. 971 mn on this account.
The proceeds received on the conversion option being exercised on
warrants has augmented the long term resource base of the Company.
5,987,995 Equity Shares of Rs. 10 each were issued to the holders of
the 46,650 Zero Coupon Convertible Bonds of ,000 each who opted for
the conversion in terms of the Offering Circular dated 24th March 2006.
Hence an amount of Rs.59.88 mn has been added to the Share Capital of
the Company while an amount of Rs.2.01 bn has been added to the
Securities premium reserve of the Company. However, till date, further
340,155 Equity Shares of Rs. 10 each were issued to the holders of the
2,650 Zero Coupon Convertible Bonds of ,000 each who opted for the
conversion in terms of the Offering Circular dated 24th March 2006.
Hence after FY 08, an amount of Rs.3.4 mn has been added to the Share
Capital of the Company while an amount of Rs.114.49 mn has been added
to the Securities premium reserve of the Company. Thus far almost 82%
of the bondholders have opted for the conversion of ZCCBs into Equity
Shares. There was no impact of the conversion of ZCCBs on the cash
flows of the Company as money was raised in FY 06 and utilised in FY
07.
As you may be aware, pursuant to approval of Shareholders on the 19th
October 2007, the Company allotted 8.6 mn Equity Warrants to the
Corporate Entities of the Promoters Group on Preferential basis under
the applicable SEBI (DIP) Guidelines. The subscribers have paid an
amount of 10% (Rs.411 mn approx) at a price of Rs. 478.15 each. The
proceeds of the security deposit received on warrants has augmented the
long term resource base of the Company. Out of the above, the
subscribers of Equity Warrants have opted for conversion of 1,102,600
warrants and as a result 1,102,600 Equity Shares of Rs.10 each were
issued to the holders of the warrants. This has resulted in addition of
Rs.11 mn to the Share Capital and Rs.516 mn approx to the Securities
premium reserve of the Company. The proceeds received on the conversion
option being exercised on warrants has augmented the long term resource
base of the Company.
6. Resource mobilization and capacity expansion
During the year under review, the Company has raised from international
financial markets/institutional lenders, External Commercial Borrowings
(ECBs) / Foreign Currency Loans based on LIBOR linked rate at
competitive pricing. Total amount raised is .5 mn and of which US$
55 million have been disbursed during the year under consideration.
The loan amounts are being used by the Company and its subsidiaries for
the expansion and modernization activities. The unutilized amount of
US$ 7.5 million at the yearend was kept in fixed deposit with overseas
banks.
The Company has invested an amount of Rs.610 mn to increase the
capacity of the MIS/SIS division by 15221 MTPA. An amount of Rs.301 mn
has been spent on capital expenditure for the piping segment adding in
excess of over 35.186 MTPA in the segment. An amount of Rs 599 mn has
been spent on capital expenditure for the Agro processed division. An
amount of Rs. 60 mn. has been spent on capital expenditure for Tissue
Culture division to increase the capacity by 2 mn clants. An amount of
Rs. 20 mn was spent on capital expenditure for Plastic Sheet division.
An amount of Rs 149 mn was spend towards strengthening the common
corporate service infrastructure.
7. MOU on Water Infrastructure Projects
The Company has signed a significant MOU with a leading Israeli State
run company for working together on projects related to water
infrastructure in our country including water supply systems, municipal
water management, waste water treatment, desalination plants, water
reclamation projects. Government has strongly recommended that at
least 25% of waste water for non domestic uses shall be recycled by all
beneficiaries. Many tier I and II cities have activated 24x7 water
supply schemes for domestic use. The public private partnership model
is being used by Government to promote the concept of 24x7 water The
pace of urbanisation, present obsolete technologies and new stringent
environmental norms all provide for huge untapped opportunities in the
field of water infrastructure.
8. Overseas Acquisitions and the operations of subsidiaries
The Company has continued its acquisitions in the period since the last
report and has acquired a controlling stake in a Swiss manufacturer.
This Company is a specialist in machines and equipments for drip
irrigation lines, quality control and automation equipments, laser
machines and laser products. The above company holds valuable IPRs and
cutting edge technology for irrigation as well as composite pipes
business. The acquisition would help our Company to further consolidate
capacities and improve the speed to market for new generation drip
lines including precision irrigation products.
Thomas Machines S. A.
69.75%
Manufacturer of specialist machines including latest
generation driplines. automation equipment and laser
products.
Benefits
- Latest generation technology for high speed machines.
- Helps Company (JISL) in building its capacities faster.
- Increases speed to market and access to precision irrigation
products.
- Thomas holds valuable IPRS and cutting edge technology.
Revenues
- Current revenue - CHF 12 mn
- Potential-CHF 25 mn
The integration activities with investee companies have begun in
earnest and has had a very positive effect on the product development
activities of the Company as feedback from various geographic areas are
now available for such activities. The availability of a wide spectrum
of products in the irrigation segment is making it possible for the
Company to serve customers in a complete manner which in the pre-
acquisition time resulted in loss of business opportunities.
The Mauritius based direct subsidiary of the Company has earned an
income of $ 858 440 and made a net profit of ,457. Summarised
Balance Sheet and the income statement of the said subsidiary is
available elsewhere in the Annual Report. The resources of the
subsidiary have been further strengthened by infusion of .6 mn as
Capital and .42 mn as Loan & Redeemable Preference Shares during the
year under review.
The Netherlands based subsidiaries have not only invested monies for
acquisition of Naandan Jain in Israel but also incorporated Swiss
subsidiaries and acquired controlling stakes in Thomas Machines S.A.
These subsidiaries are investment vehicles and shall be used for the
acquisitions in European Union. The implementation of plans to revamp
and restructure the overseas investment and holding structure is on
hold for the time being as the global foot foray of the Company is
being first finalized and then the plan will be initiated for
implementation.
Other Subsidiaries
Information on operations of other subsidiaries including new
acquisitions has been covered in Management Discussion and Analysis
report.
9. Employee Stock Option Plan (ESOP)
The implementation of Employees Stock Options and Shares Plan, 2005
(ESOP-2005) has continued during the year under review. Thus two more
lots are now issued to eligible employees including whole time
directors, and key management personnel. No employee has been issued
options entitling such person to subscribe to more than 1% of Equity
Share capital of the Company.
Details and disclosures in compliance with the clause 12 of the SEBI
(Employee Stock Option Scheme and Employee Stock Purchase Scheme)
Guidelines, 1999 are set out in the table below:
A] Options Granted
B] Pricing Formula
C] Options vested
D] Options exercised
E] The total number of shares arising
as a result of exercise of option
F] Options lapsed
G] Variations in terms of options
H] Money realised by exercise of options !
G] Total Number of options in force
J] Employee-wise details of options granted to:
i. Senior managerial personnel
ii. Any other employee who receives a grant in any one year of option
amounting to 5% or more of option granted during that year
iii. Identified employees who were granted option,
during any year, equal to or exceeding 1 % of the
issued capital (excluding outstanding warrants and
conversions) of the company at the time of grant
K] Diluted Earnings Per Share (EPS) pursuant to issue of
shares on exercise of option calculated in accordance
with Accounting Standard (AS) 20 Earnings per Share
L] Where the company has calculated the employee
compensation cost using the intrinsic value of the stock
options, the difference between the employee
compensation cost so computed and the employee
compensation cost that shall have been recognized
if it had used the fair value of the options, shall
be disclosed. The impact of this difference on profits and
on EPS of the company shall also be disclosed (in lakhs)
M] Weighted-average exercise prices and weighted-average
fair values of options shall be disclosed separately for options
whose exercise price either equals or exceeds or is less than
the market price of the stock on the grant date.
(a) weighted average exercise price
(b) weighted average fair value
N] A description of the method and significant
assumptions used during the year to estimate the fair values
of options, including the following weighted-average information:
(1) risk-free interest rate,
(2) expected life, (in years, average)
(3) expected volatility, (in months)
(4) expected dividends, and
(5) the price of the underlying share in market at the time of option
grant. Rs. per share
Lot No. 1 Lot No.2 Lot No. 3 Lot No. 4*
5 00,000 5,00,000 5,00,000 5,00,000
25% discount 10% discount 10% discount 10% discount
on market price on on market price on on market price on on market
price on
the date preceding the date preceding the date preceding the date
preceding
the date of grant the date of grant the date of grant the date
of grant
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
None None None None
0 0 0 0
5,00,000 5,00,000 5,00,000 5,00,000
60,000 1,20,000 1,20,000 1,20,000
0 0 0 0
0 0 0 0
NA NA NA NA
362.61 634.35 1075 820
307.76 413.46 568 428.58
175.11 174.77 277 211
Black Scholes Method Black Scholes Method
7.50% 8.00% 9% 9%
4 4.5 5 5
6 6 6 6
21 % in first year with 3% increase 22% in first year and increase on
per year thereafter 2% every year thereafter
410.35 459.40 630.15 476.20
9. Directors Retiring And Their Background
Shri R. Swaminathan and Shri D. R. Mehta are retiring by rotation and
being eligible offerthemselves for reappointment at the ensuing AGM. In
terms of the Corporate Governance requirements, given below are the
brief resume of each of the retiring directors:
Shri R. Swaminathan: He is Chemical Engineer responsible for
manufacturing operations in our Poly-tube, Sprinkler, PVC & PC Sheets
and PVC & PE Pipe units. He has 30 years of experience in operation and
maintenance activities of plants handling such things as Solvent
Extraction. Plastics Extrusion and Injection Moulding. He joined the
Jain Group in 1982 and was appointed a full-time Director in 1996.
Shri D. R. Mehta: was appointed on 26.12.2007. He joined Indian
Administrative Service in 1961 and held important positions in the
Govt, of Rajasthan and later in the Govt. of India. He was the
Chairman of Securities and Exchange Board of India (SEBI), an apex
regulatory body that overseas the regulation and development of the
capital market in India. He has been credited with transforming the
Capital Market in India into a modern, efficient, safe, vibrant and a
very investor friendly one. His prior prestigious postings include the
Deputy Governor of Reserve Bank of India, Director General of Foreign
Trade, Ministry of Commerce, and Additional Secretary, Banking,
Ministry of Finance.
Born in 1937, he is graduate of Arts and Law from Rajasthan University.
He also studied at Royal Institute of Public Administration, London and
Alfred Sloan School of Management, MIT, Boston.
There is another side to this sterling personality-humane side. A man
of compassion, he set up the Bhagwan Mahavir Viklang Sahayata Samiti in
1975.
10. Directors Responsibility Statement
i) In accordance with the provisions of Section 217(2AA) of the
Companies Act, 1956, your Directors State that:
ii) in the preparation of the annual accounts, the applicable
accounting standards have been followed except, to the extent indicated
in notes;
iii) the accounting policies selected and applied consistently and
reasonable and prudent judgments and estimates were made so as to give
a true and fair view of the state of affairs of the Company as at 31st
March, 2008, and, of the profit of the Company for the year ended 31st
March, 2008;
iv) proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of
Companies Act, 1956, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
11. Material Developments In Human Resource
The Company is adopting various HR initiatives for overall employee
(associate) development as well as for development of a sense of
belonging amongst the associates. Some of the activities are directly
related to the training of the associates for their individual
development and some are related to development of this organization as
a large family.
Employee Development
In the present globalised environment, people are the partners in
progress and the key to success.
Human Resource Development function, therefore, is focusing on
enhancing this Intelligence Capital. The efforts are directed for
building leadership qualities, increasing synergy. developing
associates and preparing workforce for growth.
The Company believes that training, coaching and exposure activities
must be undertaken as a matter of routine for development of the skills
and the horizons of the individual associate. This helps in realizing
their latent potential. Job rotation is also one of the important tasks
in that direction because it also adds value to the person. Due
importance is given to the development of the associates so as to
synchronize the mutual beneficial relationship.
The Human Resources departments have the sole responsibility for
training and development of the associates. This is done by planning
the training for different categories of associates throughout the year
and based on the needs of the situation. This is also one of the
important parts of the Quality Management System. The training programs
range from the technical, behavioural to spiritual. Thus, the all round
development of the associate forms the important goal of the HRD
department.
Various types of in-house programs were conducted this year; related to
behaviour management, stress management, interaction with renowned
personalities to share their experiences as well as technical
developments in various fields, yoga and meditation etc.
Training & Development details from April 2007 to March 2008 are as
under;
Inhouse Faculties
Sr. No. of No. of Dura-
Location
No. Prog. Asso- tion
ciates (hrs.)
1 Agri Park 20 301 1923
2 Plastic Park 326 3803 8138
3 Food Park 336 4318 65522
Total 682 8422 75583
External Faculties
No, of No. of Dura- Total
Man-
Prog. Asso- tion
hrs.
ciates
4 4 63 2315
14 27 308 12616
20 56 777 71029
38 87 1148 85960
The Company also deputes its associates for outside training,
exhibition, seminar, conference and symposiums in India or abroad. Such
trainings/ exhibitions give them good exposure to the external
environment along with an insight into the new developments in their
fields.
Thus, the HRD department contributes to corporate people philosophy of
nurturing genuine concern for multifaceted associate development and
value Emotional Quotient (EQ) over Intelligence Quotient (IQ).
Socio-economic Survey
The work of comprehensive socio-economic survey of each associates
household continues. The idea behind this is to assess the primary
needs of each household and the priorities the family prefers to assign
to those needs. The Company proposes to firstly attend to or meet the
educational needs of each household and then switch over to the next of
its priority of housing.
Scholarship to the Associates Children
The Company not only takes care of the associates family needs but
also encourages their children for taking higher education by providing
scholarships. It is the policy of the Company to award scholarships to
the deserving students for their educational needs. The Company has
already started the practice of providing educational scholarships to
the children of associates on need and merit basis. 116 children of
the associates were provided scholarships for their education on
regular basis during the year.
Welfare Measures
The Company conducted aptitude and interilegence Quotient (IQ) tests
for 350 of children of associates during the year for guaging their
competance in higher education field. The Company also distributed
woolen sweaters and umbrellas in the season to all its associates. The
Company also provided Jalgaon based associates free of charge 100
shares each of a local cooperative bank to 1340 associates during the
year. Sense of Belonging In order to develop a sense of belonging
between the Company and associates, the Company has announced ESOP
scheme. The shares of Company are being allotted to all the associates
who are working with the Company. The number of shares allotted to
everyone depends on his position as well as length of his association
with Company. In fact they are being made owners of the Company.
12. Corporate Social Responsibility
As a part of corporate social responsibility, the Company is supporting
following three important projects: (1) Rural Development of Village
Wakod, (2) Establishment of Gandhi Research Foundation at North
Maharashtra University and (3) Setting up of Anubhuti School - An
Experiential Residential International Academy. A complete pull out on
the sustainability of CSR activities and carbon footprint of the
Company is given elsewhere in this report.
13. Environment Health & Safety Performance
Environment
During the FY08, the Company has kept all environmental pollution under
control, within the limits of consent issued by the appropriate
authorities. Company introduced in-house air quality checking. The
Company has strengthened the Effluent Treatment Plant (ETP) for
recycling the treated water. The Company has provided acoustic canopies
for DG Sets and Air Compressor to reduce noise levels in its plants.
The Company has sold 3,954 Kg of Hazardous waste to authorised land
filling agent at Taloja near Mumbai. The Company has continued
awareness training programme on ISO-14001 an Environmental Management
System, with all its employees.
The Company has planted more than 5,000 plants during the FY08 in its
premises.
Health & safety
During the FY08 there were No Reportable Accidents. The Company has
trained an experienced person on industrial safety and has recruited
two safety officers. The Company has purchased a Multipurpose Fire
Tender with water Co2, DCP and Foam facilities to deal with fire
related incidents. The Company has recruited a medical Doctor and
positioned male nurses for its Medical Inspection room for 24 hours
service. Company has organized Health check up to all employees and no
occupational disease is noticed. Drinking water checks were conducted
periodically and ensured safe drinking water to employees. Corrective
actions are in place to control the minor accidents / incidents.
Company is planning to go for certification of OHSAS-18001.
14. Internal controls for adequacy and Management Information Systems
The Company has adequate systems of internal control for all important
transactions such as:
i) Purchases of raw materials, consumables, stores & spares and fixed
assets.
ii) Sale of goods, discounts on sales, goods return & customer credit
control
iii) Payroll, other variable & fixed costs
iv) Borrowing cost, bank charges & commission
v) Inventory management
In addition to the above commercial transactions, the Company has
adequate system of internal controls to provide comfort to all
stakeholders on various issues such as safe guarding and protection of
assets against loss from unauthorized disposition, recording of
authorized and correctly reported transactions, compliance of
management guidelines & policies etc.
As stated elsewhere, Company is growing at a very rapid rate over the
last few years along with increasing geographical expansion in various
parts of India due to the recent various acquisitions. To sustain the
growth momentum in future and also integrate the acquired companies ,
the Board of Directors of the Company had decided to further strengthen
the internal control systems and had last year appointed M/s Ernst and
Young. Mumbai as an external internal auditor to facilitate going
beyond the generic inference of a process designed and to provide
reasonable assurance that controls are in place for a systematic,
disciplined approach aimed at improving the effectiveness of risk
management, control and governance process.
The management information system is the main source of the control and
decision making mechanism in the Company. The Company operates under
decentralized operating controls exercised at various Segment Business
Unit levels. The budgetary mechanism is already in place and annual &
rolling budgets are approved by the Board. The actual performance
versus budgets is measured for the deviations and timely corrective
actions taken.
Project Gaurai
The Company had last year embarked upon an exercise to implement
Enterprise Resource Planning (ERP) package to integrate all functional
operations of the Company and smoothen the process of management
decision making.
It is imperative for the Company to go for a robust and integrated
Management Information System (MIS). In line with this thinking, the
Company has chosen to implement MySAP ERP ECC 6.0 through Satyam
Computer Services Ltd. as an implementation partner. Rightly dedicated
to Late Gaura bai for the values she has inculcated, this Project
Gaurai is ably supported by Satyam, a global IT consulting and services
provider who has a dedicated SAP PRACTICE as part of its Enterprises
Solutions Group. Satyam was involved in 40 Implementation projects for
SAP ECC version. The implementation of Project Gaurai is at advanced
stages and will GO LIVE by October 2008.
Scope: The SAP implementation shall cover 5 plants and 28 sales
offices. Satyam is using Accelerated SAP (ASAP) methodology with tools,
templates, questionnaires and the skills to fully utilize the power of
SAP products as Systems.
The main objectives of Implementation of Project Gaurai are;
1. Embrace the best practice business processes for leveraging Jain
Irrigations management performance.
2. Increase the effectiveness and efficiency of Jain Irrigations
management and decision making activities through automation of
processes accommodated in a fully integrated application system.
3. Real time financial and management reporting.
4. The solutions in SAP Business Suite are open and flexible, increase
companys ability to anticipate market needs and make customer service
more responsive.
The implementation is expected to further strengthen the internal
control mechanism in the Company and improve resource utilization as
well as overall efficiency of various processes.
15.Fixed Deposits:
The Company, during the year under review, has not accepted nor renewed
any deposits from public, under the Companies (Acceptance of Deposits)
Rules, 1975. The Company had no unclaimed / overdue deposits as on 31st
March, 2008.
16. Auditors
The Auditors, M/s. Dalai & Shah, Chartered Accountants, Mumbai have
furnished a Certificate under Section 224(1 B) of the Companies Act,
1956 that their proposed re- appointment, if made, will be in
accordance with the said provision of the Companies Act, 1956.
17. Promoters Group for the purposes of SEBI (Substantial Acquisition
of Shares and Takeover) Regulations, 1997
In pursuance to clause 3 (1) (e) (i) of SEBI (Substantial Acquisition
of Shares and Takeovers) Regulations, 1997 and definition of group as
defined in the Monopolies and Restrictive Trade Practices Act, 1969 the
representative of Promoters Group of the Company has filed the
following list of the individual Promoters and Corporate entities of
Promoters Group as under:
Sr. Name of Promoters/Corporate entitles of
No. Promoters
1 Bhavarlal H Jain
2 Ashok B Jain
3 Jyoti Ashok Jain
4 Arohi Ashok Jain (N/G Ashok B Jain)
5 Aatman Ashok Jain (N/G Ashok B Jain)
6 Anil B. Jain
7 Nisha Anil Jain
8 Athang Anil Jain (N/G Anil B Jain)
9 Amoli Anil Jain (N/G Anil B Jain)
10 JAshuli Anil Jain (N/G Anil B Jain)
11 Ajit B Jain
12 Shobhana Ajit Jain
13 lAbhedya Ajit Jain (N/G Ajit B Jain)
14 Abhang Ajit Jain (N/G Ajit B Jain)
15 Atul B. Jain
16 Bhavana Atul Jain
17 Jalgaon Investments Pvt. Ltd.
18 Cosmos Investment & Trading Pvt. Ltd.
19 Jain Investment and Finance B.V. Netherlands
Sr. Name of Promoters/Corporate entities of
No. Promoters
20 Kuppam Foods & Vegetables Processing Pvt. Ltd
21 Jain eAgro.com (India) Pvt. Ltd.
22 Jain Holdings B.V. Netherlands (under Incorporation)
23 Uain Overseas Investments Ltd, Port Louis, Mauritius,
24 UfSL Investments Ltd, Port Louis, Mauritius (under lncorpora:ion)
25 iJain Investments A.G. Switzerland :(under Incorporation)
17. Particulars of Employees
As per provisions of Section 217 (2A) of the Companies Act, 1956 only
seven of the persons in employment of the Company have drawn
remuneration in excess of Rs.200,000/- per month, during the year under
review of part thereof as per details in the annexure to this report.
18. Particulars of energy conservation, technology absorption, research
and development, foreign exchange earnings and outgo
A) ENERGY CONSERVATION Plastic Park- energy conservation
- Introduction of multi cavity moulds has given sizable conservation of
electrical energy, along with enhanced productivity and optimum
capacity utilization to the Company.
- Extension of AC drives application, and introduction of PLC controls
in moulding machines has resulted in additional energy saving.
- Continued efforts, maintaining the power factor very closed the
unity, has added its share of electrical energy conservation.
- Continuing all the efforts for energy saving, such as Power Factor
Maintenance, state of the art machinery, process improvement, waste
control and reductions. The Company has saved 14,05,688 KWH (Rs. 6.32
mn) of electrical energy during 2007-08 at plastic park.
Agri Park- energy conservation
Jain Tissue Culture Banana plants have increasing demand from the
farmers end because of uniformity in age and genetic purity of the
plants that gives two and half fold more yield than the conventional
planting material. Earlier Company was selling banana plants in few
states of the country, where the planting season were restricted to
June to October only. Because of limited planting season the tissue
culture laboratory required more Man, Machine and Space. To utilize the
facility cent per cent, the Company has extended the area of marketing
in those states where planting seasons are different than above. Team
of Agronomist have also achieved big success by developing methods to
plant banana round the year that actually saved at least 30% energy
because of continuous production in the laboratory.
Tissue culture laboratory requires huge amount of water for glassware
washing in the laboratory, plant washing and maintenance of
microclimatic conditions in the green house. Team of mechanical
engineers & automation engineers have developed semi automated
glassware washing system for laboratory that helped to save more than
40% water and energy. Similarly, automation has also been done in the
green houses for maintaining microclimatic conditions that saved more
than 30% water and energy.
The efforts are still going on to conserve water and energy by making
full automation of operating in laboratory, Green House and Shade
House.
The bio-gas plant produced 40,000 m3 of bio-gas which was used for
conservation of energy equivalent to 50,000 KWH (Rs. 0.22 mn). Food
Park- energy conservation
- Through installation of capacitors, the power factor has improved
closer to unity, and this resulted in a discount of Rs. 0.29 mn from
the energy bill for the FY 08.
- By switching over from conventional lighting system to energy
efficient system, the Company saved 90,000 KWH (Rs. 0.40 mn) during the
year.
- Installation of Variable speed drive for boiler fan has given a
substantial energy saving of 1,50,000 KWH (Rs. 0.675 mn) during the
year.
- The Fruit Division has installed and commissioned Coal/ Bagasse based
boiler, resulting in substantial savings in energy costs. While
installing the Coal/Bagasse based boilers, due care has been taken to
maximize efficiency and reduce pollution.
- The Fruit Division has initiated a water conservation program to
reduce water consumption and also to recycle and reuse water, which is
going to be the most scarce resource.
B) TECHNOLOGY ABSORPTION
Plastic Park-Technology Absorption None
Food Park-Technology Absorption None
Agri Park-Technology Absorption None
C)RESEARCH AND DEVELOPMENT Food Park- Research and Development
- Using Anaerobic & Aerobic treatment for effluent water, sizable
volume of Bio gas is generated, which as given nearly 62,000 KWH (Rs.
0.279 mn) equivalent of energy to run the power generator.
Efforts for dehydration of onions using solar drier are under way.
- Development work for Fried Onion and Reduction in Bacterial Count
in dehydrated onion are in final stage and shall give benefits shortly.
- Substantial thermal efficiency is achieved through conversion of
furnace oil fed Boiler to Coal & Bagasse fed one.
- Company has been working on process to be able to extract, stabilize
and produce concentrates of Indian Citrus varieties namely Mosambi.
- Company has carried pilot scale trials on Mosambi, Kinnow and Nagpur
Orange and was successful in standardizing the process. The trial
samples submitted to customers have been approved and accepted.
Plastic Park- Research and Development
- In the production of MIS component and pipe fittings, the Company has
achieved substantial increase in productivity and optimum utilization
of equipment through the introduction of multi cavity moulds.
- The Company has introduced Reverse Osmosis Technology which has
improved quality of input water, thereby resulting in better quality of
product and reduction in down time of moulds and machines.
- To foster the quality checking system, the Company has established,
state of the art metrologica! facility at its plastic products
division.
- Continued efforts of Research & Development has enhanced spectrum of
product range adding nearly 90 new products.
- Development of new product range SWR for pipes and fittings for
sewerage and drainage under the brand name B-SURE has given
additiona cutting edge to the business of the organization.
- A, low wall thickness tubing with flat emitter is developed under the
brand name Turbo Slim.
- Rodent deterrent technology was introduced to protect all plastics
products for rodent.
- New generation equipment for high speed extrusion of tubing with
round cylindrical emitters was introduced.
- Online socketing of PVC pipes was introduced.
- A self cleaning suction screen filter Jain roto clean was
introduced which can be used on suction side of the pump.
- New range of filters for higher pressure rating, 10 kg/cm2 with trade
name Jain Super flow plus is introduced with ribbed body construction
to water hammer and surges in pipe line.
- The existing range of the plastic filter with flow rate of 25 m3/hr
is extended up to 200 m3
- A completely farmer friendly filter back wash controller Jain Filto
- clean\s developed with features, corrosion resistant, auto alarm
system besides, being operated by solar energy.
- Present Jain hydro cyclone filter is hydro dynamically redesigned for
increasing operational efficiency to remove fine sand and silt
particles.
Agri Park- Research and Development
Jain Irrigation systems Limited have one of the biggest and oldest
tissue culture production laboratories in India and also have developed
its unique facility for research and development work. Apart from
continual improvements made in banana tissue culture, the team of
scientists have achieved big success by developing tissue culture
protocol to regenerate pomegranate plants. The protocol is now being
used to produce pomegranate plantlets on a commercial scale. These
plants will be free from disease and Company will buy back the fruits
for processing from the growers of these plants. This will help farmers
to get assured price for their produce.
Solar Division has developed anti corrosion coating for application
inside the tanks, which improved the life of product substantially.
Developed LED based Solar street light system which consumes nearly 50%
of power compared to conventional solar light, and Supplied to Railways
for their Level cross lighting.
Developed Solar Fencing system and is used in Companys own premises.
R&D Expenditure [Rs. Million]
2007-08 2006-07
Capital Expenditure 13.35 16.25
Revenue expenditure 18.89 22.69
Total 32.24 38.94
% to revenue 0.19% 0.32%
D) FOREIGN EXCHANGE EARNINGS AND OUTGO [RS. MILLION]
C.I.F. Value of Imports, Expenditure and
Earnings in Foreign Currency
2007-08 2006-07
a) C.I.F. Value of Imports
Raw Material, Components and Stores and Spares 2,243.61 2,150.37
Capital Goods 332.55 592.74
Total 2,576.16 2,743.11
b) Expenditure in Foreign Currency (on cash basis)
Interest and Bank Charges 130.59 4.29
Discount / Commission on Export Sales 2.89 0.87
Travelling Expenses 9.49 10,36
Export Selling / Market Development Expenses 2.55 4.07
Law & Legal Expenses 44.61 13.17
Others 32.01 1.43
Total 222.16 34.20
c) Earnings in Foreign Currency
FOB Value of Exports
(on the basis of bill of lading) 4,082.57 3,727.69
Interest and other Income 36.06 41.47
Total 4,118.63 3,769.16
18. Acknowledgement
The Directors take this opportunity to place on record their
appreciation of wholehearted support received from all stakeholders,
customers and the various departments of Central and State Governments,
Financial Institutions, Bankers, the Dealers and Suppliers of the
Company. The Directors wish to place on record their sense of
appreciation for the devoted services of all the associates of the
Company.
by order of the Board
Mumbai, Anil B. Jain
27th August, 2008 Managing Director |
|
 | |
| Source : Religare Technova | |
| |