Jain Irrigation Systems

1) A) Contingent Liabilities not provided for in respect of: [Rs. in
 Million]
 
 Particulars                         31-March-2009     31-March-2008
 
 i) Claims not acknowledged as 
 Debts in respect of:
 
 - Customs and Excise Duty              68.49             71.74
 
 - Power Charges                          -              126.52
 
 - Others (Legal)                       25.61             27.94
 
 ii) Guarantees given by the Company’s Bankers in the normal course of
 business 861.27 428.28
 
 iii) Bills Discounted with the banks.  614.49 389.17
 
 iv) Export obligation towards duty saved amount under EPCG Scheme
 3,381.48 1703.97
 
 v) Corporate Guarantees given for repayment of indebtedness of Overseas
 Subsidiaries 2576.80 919.31
 
 B) Estimated amount of Contracts remaining to be executed on Capital
 Account 65.02 216.25 and not provided for (net of advances)
 
 2) Pursuant to the approval of Shareholders dated 31-January-2006, the
 Board of the Directors have been empowered to contrib- ute towards
 rural development in general and in particularly to improve the
 knowledge, skill, efficiency and self-dependence of community. The
 amount of such contribution shall not exceed in aggregate 5.00% (till
 PY 3.00%) of the annual net profts of the Company as refected in the
 respective proft & loss account adopted by shareholders. Accordingly,
 an aggregate sum of Rs.  153.63 Million (till PY Rs. 93.54 Million) has
 been accumulated for this purpose and the same will be accounted as
 expenses in the year of actual contribution.
 
 3) On 29-March -2006, Company had issued 60,000 Zero Coupon Currency
 Convertible Bonds (ZCCBs) (due on 30-March-2011) at face value of US$
 1,000.00 each aggregating to US$ 60.00 Million at a redemption price of
 139.37%. The bondholder has the option to convert the bonds into fully
 paid Equity Shares of Rs. 10/- each (at a premium of Rs. 335.59 per
 share) in the ratio of 1:1.283602 on or before 28-February-2011 (with
 fixed rate of exchange on conversion at Rs. 44.36 to US$=1). These
 bonds may be redeemed, in whole but not in part at the option of the
 Company on or at any time after 29-March-2009 subject to satisfaction
 of certain conditions. Upon conversion of all ZCCB’s into Equity, this
 will result in increase of Equity Shares capital by 7,701,606 shares
 and increase in net worth of the Company by Rs. 2661.60 Million. As of
 the Balance Sheet date, bondholders representing 49,150 (81.92%) bonds
 have opted for conversion into Equity Shares and 6,308,895 Equity
 Shares of face value of Rs. 10/- have been allotted (with a premium of
 Rs. 335.59 per share).
 
 4) Related Party Disclosure as required by the Accounting Standard 18
 (AS18): A] Related parties and their relation:
 
 1) Wholly Owned Subsidiary Companies:
 
 JISL Overseas Ltd., Mauritius.
 
 2) Fellow Subsidiary Companies:
 
 Jain (Europe ) Ltd. UK
 
 Jain Overseas BV. Netherland
 
 Nucedar Mills Inc. USA,
 
 Jain Irrigation Holding Corporation Inc. USA
 
 JISL Global SA, Switzerland
 
 Thomas Machines S.A.,
 
 Naandan Jain Irrigations CS Ltd. Israël
 
 Naan Dan Agro-Pro (Israel Company for Agricultural
 
 Applications) Ltd, Israel
 
 NaanDan Jain France Sarl, France
 
 NaanDan Jain Australia Pty Ltd, Australia
 
 NaanDan Do Brasil Participacoes Ltda., Brazil
 
 NaanDan Jain Industria E Comercio de Equipmentos Ltd., Brasil
 
 Dansystems S.A., Chile
 
 Point Source Irrigation, Inc.(US), USA
 
 Jain ( Americas ) Inc. USA,
 
 Chapin Watermatics Inc. USA
 
 Cascade Specialties Inc. USA
 
 Jain Irrigation Inc (Earstwhile Aquarius Brands Inc.) USA
 
 JISL Systems SA. Switzerland
 
 Jain (Israel) B V. Netherland
 
 Jain Sulama Sistemleri Sanayi Ve Ticaret Anonim Sirkti.
 
 NaanDanJain Mexico, S.A. De C.V. Mexico NaanDan Jain S.R.L. (Italy),
 Italy NaanDan Jain Iberica S.C., Spain
 
 NaanDan Jain Peru S.A.C, Peru Dansystems S.A , Chile
 
 5) Companies / Firms in which Director, Director’s Relatives are
 Directors/Partners:
 
 Jain Extrusion & Molding Pvt. Ltd.,
 
 Jain Vanguard Polybutelyne Ltd.,
 
 Atlaz Technology Pvt. Ltd,
 
 JAF Products Pvt. Ltd,
 
 Jalgaon Investment Pvt. Ltd
 
 Jain Rotfl Heaters Pvt. Ltd.,
 
 Timbron India Pvt. Ltd.
 
 Jain Investments & Finance BV. Netherland
 
 Jain Sons Investments Corporation,
 
 PVC Trading House,
 
 Jain Computer & Allied Services,
 
 Jalgaon Metal & Bricks Manufacturing Co.,
 
 Bhavarlal & Kantabai Jain Multipurpose Foundation,
 
 Bahinabai Chaudhari Memorial Trust.
 
 Pixel Point Pvt. Ltd.,
 
 Labh Subh Securities International Ltd.,
 
 Jain Brothers Industries Pvt. Ltd.,
 
 Cosmos Investment & Trading Pvt. Ltd.,
 
 Stock & Securities (India) Pvt. Ltd.,
 
 Gandhi Research Foundation,
 
 Jain e-agro.com India Pvt. Ltd.
 
 Jain Overseas Investments Ltd. Mauritius
 
 Drip & Pipe Suppliers,
 
 Plastic Enterprises,
 
 Jalgaon Udyog,
 
 Anubhuti Scholarship Foundation, Jain Charities, Jalgaon.
 
 6) Key Management Personnel & Designation: Bhavarlal H. Jain
 (Chairman), Anil B. Jain (Managing Director ),
 
 Atul B. Jain (Whole Time Director),(Resigned from 28-07-2008 R. B. Jain
 (Whole Time Director), (Resigned from 28-07-2008) R. Swaminathan (Whole
 Time Director), Ramesh C A Jain (Director) Radhika C Pereira (Director)
 
 Ashok B. Jain (Vice Chairman), Ajit B. Jain (Joint Managing Director),
 )
 
 A. R. Barwe (Director)
 
 V. V. Warty (Director – SBI Nominee)
 
 D. R. Mehta (Director)
 
 5) Relatives of Key Management Personnel & Designation:
 
 Atul B. Jain (Chief Marketing Offcer)
 
 7) Remittance in foreign currency for dividend:
 
 The Company has remitted Rs. 81.38 Million (PY Rs. 73.16 Million) on
 account of dividend payable pertaining to year 2007-08 to the
 non-resident shareholders on 36992200 (PY 36,579,289) number of
 ordinary shares held by them.
 
 Derivative instruments outstanding:
 
 Option (USD / INR) – Long Term USD 43.77 Million (PY Rs. 65.35 Million)
 
 Loan Interest Rate Swap (USD / INR ) – Long Term USD 30.00 Million (PY
 Rs. Nil)
 
 b) The net un-realised loss aggregating Rs.712.30 Million (PY Rs.
 310.55 Million) in respect of derivative instruments which qualify for
 hedge accounting have been accounted for as a Hedging Reserve to be
 ultimately recognized in the proft and loss account when the underlying
 transactions will be matured.
 
 8) Sundry Creditors : Sundry Creditors in Schedule 10 (a) include;
 
 a) i) Rs. 20.28 Million (PY 5.43 Million) Balance to Micro, Small and
 Medium Enterprises.
 
 ii) Rs. 4,548.65 Million (PY 4233.56 Million) balance to others.
 
 The disclosure in (i) above is based on the information available with
 the Company regarding the status of supplier under the Micro, Small and
 Medium Enterprises Development Act, 2006 (MSME).
 
 b) Enterprises to whom the Company owes a sum, which is outstanding for
 more than 30 days is Rs. Nil (PY Rs. Nil) and the interest on the same
 is Rs. Nil (PY Rs. Nil).
 
 9) The Company has decided not to exercise the option provided under
 the notification No. GSR 225E dated 31st March, 2009, issued by the
 Ministry of Corporate Affairs, relating to Accounting Standard
 11-(AS-11)- “The effect of changes in Foreign Exchange rates”.
 
 10) The Company has a system of periodically reconciling outstanding
 balances of sundry debtors, advances, deposits, etc. and on such
 reconciliation; the necessary adjustments are made in accounts.
 Consequently, balances at the end of the year are as per books of
 accounts.
 
 11) The previous year’s (PY) figures are not comparable, due to the
 merger impact of the “Orient Vegetexpo Limited”.
 
 12) Additional information pursuant to the provision of paragraph in 3
 and 4 of Part-II of “Schedule VI” to the Companies Act, 1956, is given
 in the Annexure “A” to “E”
 
 13) The previous financial year’s figures have been reworked, regrouped
 and reclassified to the extent possible, wherever necessary. CY :
 Current Year & PY : Previous Year