1) A) Contingent Liabilities not provided for in respect of :
[Rs. in Million]
i) Claims not acknowledged as
Debts in respect of:
- Customs and Excise Duty 281.47 271.35
- Other Taxes & Levies 73.78 110.90
- Others (Legal Case) 52.71 49.74
ii) Guarantees given by the Company''s
Bankers in the normal course of business 1,263.65 932.56
iii) Bills Discounted with the banks. 454.45 244.28
iv) Export obligation towards duty
saved amount under EPCG Scheme 1,834.10 5,851.26
v) Corporate Guarantees given for
repayment of indebtedness of
Overseas Subsidiaries 1,802.04 1,379.49
In respect of (i) above, the company has taken necessary legal steps to
protect its position in respect of these claims, which, in its opinion,
based on legal advice, are not expected to devolve. It is not possible
to make any further determination of the liabilities which may arise or
the amounts which may be refundable in respect of these claims.
B) Estimated amount of Contracts
remaining to be executed on 603.58 591.07
Capital Account and not provided
for (net of advances)
2) On 29th March 2006, Company had issued 60,000 Zero Coupon Currency
Convertible Bonds (ZCCBs) (due on 30th 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 had 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 28th February 2011 (with fixed
rate of exchange on conversion at Rs. 44.36 to US$=1). These bonds were
to be redeemed, in whole but not in part at the option of the Company
on or at any time after 29th March 2009 subject to satisfaction of
certain pre conditions. As of the Balance Sheet date, all bondholders
representing 60,000 (100%) bonds have opted for conversion into Equity
Shares and 7,701,602 Equity Shares of face value of Rs. 10/- have been
allotted (with a premium of Rs. 335.59 per share).
3) Employees Stock Options and Shares Plan 2005 (ESOP) - Out of
15,356,000 Stock Options, Compensation Committee of the Company has
approved/ allotted following options to the eligible employees
including working & non executive Directors.
The discount to market price on above ESOP has been accounted/
amortized in the annexed accounts based on vesting period and as per
the accounting policies specified in Schedule 1 of the ESOP Guidelines
issued by the SEBI. No employee has been issued options entitling such
person to subscribe more than 1% of Equity Share Capital of the
Out of the total 10,000,000 ESOPs granted, as of 31st March 2011,
68,92,300 ESOPs have been converted into equity shares of the Company.
The estimate of future salary increase considered in actuarial
valuation takes into account inflation, seniority, promotion and other
Further, contribution to Defined Contribution Plan recognised as
expense for the year as under:
a) Employers Contribution to Provident Fund Rs.29.72 Million (Previous
year : Rs.19.04 Million) deposited with concerned authority.
b) Employers Contribution to Pension Scheme Rs.30.93 Million (Previous
year : Rs. 23.77 Million) deposited with concerned authority.
c) Employers Contribution to Superannuation Fund Rs. 37.05 Million
(Previous year : Rs.10.36 Million) managed by a Trust.
b) Determination of Net Profits in accordance with the provisions of
Section 198(1) of the Companies Act, 1956 and percentage of profits
being paid to working Directors and Non Executive Directors:
Remuneration and commission as Percentage of Net profits U/s Section
198 is 4.11% (Previous year : 4.29%) During the year Company has given
commission to Non Executive Directors of Rs. 5.00 million (Previous year
: Rs. 5.50 Million), which is around 0.11% (Previous year : 0.13%) of
profit U/s 198.
Standalone Annual Accounts
7) Related Party Disclosure as required by the Accounting Standard 18
(AS18): A] Related parties and their relation:
 Wholly Owned Subsidiary Companies:
JISL Overseas Ltd., Mauritius.
Jain International Trading BV, Netherlands
 Fellow Subsidiary Companies:
Jain (Europe ) Ltd. UK
Wholly Owned Subsidiaries of JISL
Jain ( Americas ) Inc. USA, Mauritius.
Jain Overseas BV. Netherland
Nu Cedar Mills Inc. USA,
[Merged in Jain (Americas) Inc,
USA w.e.f. 31st March 2011 ]
Subsidiaries of Jain (Americas)
Cascade Specialties Inc. USA
Jain Irrigation Holding
Jain Irrigation Inc,
California } Subsidiary of Jain Irrigation Holding
Point Source Irrigation,
Inc., USA Wholly Owned Subsidiary of Jain
Irrigation Inc, Californ
JISL Global SA
JISL (Israel) BV, Netherland Wholly owned Subsidiaries of Jain
Overseas B V, Netherland
JISL Systems SA Wholly Owned Subsidiaries of JISL
Naandan Jain Irrigation
CS Ltd Subsidiary of Jain (Israel) BV,
THE Machines SA Subsidiary of JISL Systems SA,
Sleaford Quality Foods Ltd.
w.e.f. 2nd Nov. 2010 Subsidiary of Jain (Europe ) Ltd. UK
Jain Sulama Sistemleri
Sanayi Ve Ticaret Anonim Subsidiary of Jain Overseas B V,
Sirkti, Turkey Netherland
NaanDan Agro-Pro Ltd, Israel
NaanDanJain France Sarl, France
NaanDanJain Australia Pty Ltd,
NaanDan Do Brasil Participacoes
NaanDanJain Industria E Comercio
de Equipmentos Ltda., Brasil
Dansystems S.A., Chile Subsidiaries of Naandan Jain
Irrigation CS Ltd, Israel NaanDanJain
Mexico, S.A. De C.V. Mexico
NaanDanJain S.R.L., Italy
NaanDanJain Iberica S.C., Spain
NaanDanJain Peru S.A.C, Peru
Projects S.R.L., Romania
Naan Sprinklers and Irrigation
Systems, INC, USA
Sleaford Food Group Ltd, Uk
Sleaford Quality Foods Ltd, UK w.e.f. 2nd Nov. 2010 } Wholly owned
Aronds Quick Dired Foods Ltd
of SQF 2009
 Companies / Firms in which Director, Director''s Relatives are
Jain Extrusion & Molding Pvt. Ltd.
Jain Vanguard Polybutelyne Ltd.
Atlaz Technology Pvt. Ltd.
JAF Products Pvt. Ltd.
Jalgaon Investment Pvt. Ltd.
Jain Rotfil Heaters Pvt. Ltd.
Jain e-agro.com India Pvt. Ltd.
Pixel Point Pvt. Ltd.
Labh Subh Securities International Ltd.
Jain Brothers Industries Pvt. Ltd.
Cosmos Investment & Trading Pvt. Ltd.
Stock & Securities (India) Pvt. Ltd.
Timbron India Pvt. Ltd.
Sustainable Agro-Commercial Finance Ltd.
Aadhunik Hi Tech Agriculture Pvt. Ltd. ( Formerly Gauri Hi Tech
Agriculture Pvt. Ltd.) Jain Green Energy Ltd. (Formerly Jain Solar
Jain Computer & Allied Services
Jalgaon Metal & Bricks Manufacturing Co.
PVC Trading House Drip & Pipe Suppliers
Jain Sons Investments Corporation Trust
Anubhuti Scholarship Foundation
Bhavarlal and Kantabai Jain Multipurpose Foundation
Gandhi Research Foundation
Jain Family Holding Trust
Jain Family Enterprises Trust
Jain Family Trust
Jain Family Investment Trust
Jain Family Investment Management Trust
Jain Investments & Finance B V. Netherland
Jain Investment A. G., Switzerland
Jain Overseas Investments Ltd. Mauritius
 Key Management Personnel & Designation
Bhavarlal H. Jain (Chairman)
Anil B. Jain (Managing Director)
Atul B. Jain (Director - Marketing)
A. R. Barwe (Director) (Deceased on 05.10.2010)
V. V. Warty (Director – SBI Nominee)
D. R. Mehta (Director)
Ashok B. Jain (Vice Chairman)
Ajit B. Jain (Joint Managing Director)
R. Swaminathan (Whole Time Director)
Ramesh C A Jain (Director)
Radhika C Pereira (Director)
Ghanshyam Dass (Director)
 Relatives of Key Management Personnel & Designation
Jyoti A. Jain (Wife of Vice Chairman)
Shobhana A. Jain (Wife of Joint Managing Director)
Nisha A. Jain (Wife of Managing Director)
Bhavana A. Jain (Wife of Director – Marketing)
The Company has entered into Operating Lease for premises as defined
in the Accounting Standard 19 (AS-19). Significant terms of the Lease
a) No transfer of ownership on termination of lease,
b) No compensation for transfer on termination of lease.
c) No renewal of lease on expiry of the lease period.
12) Remittance in foreign currency for dividend:
The Company has remitted Rs. 200.22 Million (Previous year : Rs. 99.27
Million) on account of dividend payable pertaining to year 2010-11 to
the non-resident shareholders on 44,493,498 (Previous year :
39,707,028) number of ordinary shares held by them.
b) The net un-realised loss aggregating Rs.194.83 Million (Previous year
: Rs.260.80 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 profit and loss account when the
underlying transactions will be matured.
15) 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
16) During the year, pursuant to the approval of Shareholders in the
EGM held on 9th March, 2011, a lot of 6,100,000 Equity Warrants was
allotted as per SEBI (ICDR) Regulations 2009 and other applicable
provisions of law at a price of Rs.228.15 each, aggregating to Rs.1,391.72
million. These warrants are to be converted to Equity Shares as per the
terms of Issue. A deposit of Rs.57.0375 per Equity Warrant amounting to
Rs. 347.93 million has been paid by the subscribers.
17) The Company was hitherto, amortising the Goodwill on acquisition in
the year of acquisition. During the year, the company has changed its
policy for amortisation of Goodwill in acquisition on the year to a
period of five years from the date of acquisition. There is no impact
on the Profit and Loss account for the year.
18) In terms of MOU dated 15th May 2008 entered by Company with Govt.
of Maharashtra, (GoM), the Company has received an Eligibility
Certificate (EC) under the Industrial Promotion Scheme (IPS) from DIC,
GoM for Rs. 3,804.71 Million valid upto 7 years from date of commercial
production (30.09.2009). The Company has taken credit for Rs.554.03
Million for the year ended 31st March, 2011 which includes Rs.142.39
Million for the period October 2009 to March 2010.
19) Pursuant to the Board decision dated 9th August 2010 and
Shareholders decision dated 29th September 2010, the Company decided to
split Equity Shares of Rs.10 each into Equity Shares of Rs.2 each. The
Company fixed a Record Date of 1st November 2010 to make effective the
split of shares as above.
20) Amounts less than Rs.5,000 have been shown at actual in brackets
since the amounts are rounded off to the nearest million. (One Million
= Ten Lacs)