The Directors present their 20th Annual Report for the accounting year
 ended on 31st March, 2006:
 
 Financial Results
 
 Particulars                               Year Ended        Year Ended
                                     31st March, 2006  31st March, 2005
                                        (Rs. in lacs)     (Rs. in lacs)
 
 Sales                                          12045             10568
 Other Income                                     439                84
 Gross Profit (PBDIT)                             937               950
 Financial Expenses                               891               753
 Depreciation & Write Off                         487               322
 Profit / (Loss) before Taxation                 (441)             (125)
 Exceptional Items {gain/(loss)>                 (183)                -  
 Add/ Less Previous Year Adjustment               554                15
 Profit/(Loss) before Taxation                    (70)             (110)
 Provision for Taxation                            15                 -
 Profit/(Loss) after Taxation                     (85)             (110)
 Deferred Tax Credit                              466              (430)
 Balance brought  forward                       (5855)            (5314)
 Earlier Year Income Tax Adjustments               (7)                -
 Surplus/ (Deficit) carried to Balance Sheet    (5481)            (5855)
 
 Operations
 
 During the year under review the Company has maintained high level of
 sales of Rs. 12045 lacs and leadership position in the market.
 Continuous emphasis has been given to improve product quality & to
 increase profitability through various innovative techniques and
 financial restructuring. The Company has received a export order from
 Ford Motors for supply of parabolic springs. The Company has been able
 to cut down its losses from Rs.2109.34 lacs in year ending 2001 to Rs.
 85 lacs on continuous basis.
 
 Preferential Issue to Clear Water Capital Partners (Cyprus) Limited
 
 M/s Clear Water Capital Partners (Cyprus) Limited (CCP) had acquired
 2503295 equity shares (14.50% equity stake) of Rs. 10/- each in the
 Company by way of a preferential allotment made to them in the month of
 June 2006 at a premium of Rs.62/= per equity share. CCP also subscribed
 to 3590455 convertible debentures of the Company at a price Rs.72/=
 each debenture. The Promoters of the Company subscribed to 2083333
 convertible warrants at a price of Rs. 72/= each warrant. The
 convertible debentures and warrants are fully convertible into equity
 shares of the Company with a period of 18 months from the date of their
 allotment.
 
 Dividend
 
 In view of losses your directors are not recommending any dividend.
 Business Prospects
 
 As per the Economic Survey 2005- 2006, during the last four years the
 automobile industry has been maintaining a steady annual growth rate of
 over 15%. Export is having the most thrust area and during the last two
 years export of automobiles has grown significantly. The Company
 continues to lay stress to increase its share in both domestic and
 export market.  Subsidiary Company
 
 As required under Section 212 of the Companies Act, 1956, the Statement
 and Annual Accounts of both the subsidiary companies namely JPSL
 Marketing Limited and Jai Suspension Systems Limited are annexed.
 
 Fixed Deposit
 
 During the period under review the Company has not accepted or renewed
 any public deposits.  Conservation of Energy, Technology Absorption &
 Foreign Exchange
 
 The particulars as prescribed under Section 217 (1) (e) of the
 Companies Act, 1956, read with Companies (Disclosures of particulars in
 the Report of the Board of Directors) Rules, 1988 are set out in the
 Annexure T and form an integral part of this report.
 
 Personnel
 
 There is no employee drawing remuneration in excess of limits
 prescribed under section 217 (2A) of the Companies Act, 1956 read with
 the Companies (Particulars of Employees) Rule, 1975.
 
 Directors
 
 During the year under review Mr. C. K. Vohra and Mr. U. K. Singhal
 joined the Board of Directors as Independent Directors.  Mr. Robert
 Petty was also induced in the Board as nominee of Clear Water Capital
 Partners (Cyprus) Limited.
 
 In accordance with the applicable provisions of the Companies Act,
 1956, Mr. B. S. Jauhar, Chairman and Seth Ashok Kumar retires by
 rotation at the ensuing Annual General Meeting and being eligible
 offers themselves for re-appointment.
 
 Auditors
 
 M/s A. K. Kalia & Associates, Chartered Accountants, Chandigarh retires
 at the conclusion of the forthcoming Annual General Meeting and have
 confirmed their eligibility and willingness to accept the office, if
 re-appointed. The report of the Auditors read with the notes on
 accounts being self-explanatory needs no further clarification.
 
 Report on Corporate Governance
 
 Pursuant to clause 49 of the Listing Agreement, a report on Corporate
 Governance is given in Annexure II and forms an integral part of this
 report.
 
 Directors Responsibility Statement
 
 Pursuant to the requirement under Section 217 (2AA) of the Companies
 Act, 1956 with respect to Directors Responsibilities Statement,
 directors confirm that:
 
 (a) The Annual Accounts for the financial year ended 31st March 2006
 are in conformity with the requirements of the Accounting Standards
 issued by the Institute of Chartered Accountants of India and no
 material departure from the same have been made;
 
 (b) Such, Accounting Policies has been selected and consistently
 applied and judgments & estimates made that were reasonable and prudent
 so as to give a true and fair view of the state of affairs of the
 Company at the end of financial year 31st March 2006 and of the loss of
 the company for that period;
 
 (c) Proper and sufficient care was taken for maintenance of adequate
 accounting records in accordance with the provisions of the Companies
 Act, 1956 for safeguarding the assets of the Company and for preventing
 & detecting any form of fraud and other irregularities;
 
 (d) The Annual Accounts for the financial year ended 31st March 2006
 have been prepared on a going concern basis.  Appreciation
 
 Your Directors acknowledge with gratitude, the support extend and
 confident shown by Bankers, Financial Institutions, Lenders, Government
 and by NHK Spring Co. Limited, Japan. The Directors also place on
 record their appreciation for the contributions made by the employees
 at all level.
 
                                         For and on behalf of the Board
 
 Place :  New Delhi                                      (B. S. Jauhar)
 Date  :  04.09.2006                                           Chairman