Growth! Jai Balaji Industries Limited 5, Bentinck Street, Kolkata 700 001 Jai Balaji Industries Limited Phone : 91-33- 2248-8173/9808, Fax : 91-33- 2243-0021/2210 Annual Report 2007-08 Website : www.jaibalajigroup.com Forward looking statement In this Annual Report, we have disclosed forward-looking information to help investors to comprehend our prospects and take informed investment decisions. This report is based on certain forward-looking statements that we periodically make to anticipate results based on the management’s plans CORPORATE INFORMATION and assumptions. We have tried wherever possible to identify such statements by using words such as ‘anticipates’, ‘estimates’, ‘expects’, ‘projects’, ‘intends’, ‘plans’, ‘believes’, and words of similar substance in connection with any discussion of future performance. We cannot guarantee that these forward-looking statements will be realised, although we believe that we have been prudent in assumptions. The achievement of results is subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks or uncertainties materialise, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. We undertake no obligation to publicly update Board of Directors Registered Office Bankers any forward-looking statements, whether as a result of new information, future events or otherwise. Shri Aditya Jajodia 5, Bentinck Street Allahabad Bank Chairman and Managing Director Kolkata 700 001 Axis Bank Limited Shri Sanjiv Jajodia Phone : 91-33- 2248-8173/9808 Bank of India Whole-time Director Fax : 91-33- 2243-0021 Canara Bank Shri Rajiv Jajodia E-mail : [email protected] Director Website : www.jaibalajigroup.com Central Bank of India Shri Dipti Ranjan Patnaik IDBI Bank Limited Registrar and Share Transfer Independent Director Indian Overseas Bank Shri Shailendra Kumar Tamotia Agent Indusind Bank Limited Independent Director S.K. Computers Oriental Bank of Commerce Shri Satish Chander Gupta 34//1A, Sudhir Chatterjee Street Independent Director Kolkata 700 006 Punjab National Bank Shri Ashim Kumar Mukherjee Phone : (033) 2219-4815/2219-6797 State Bank of Bikaner & Jaipur E-mail : [email protected] Independent Director State Bank of India Shri Shyam Bahadur Singh Plant Locations State Bank of Indore Independent Director Ranigunj State Bank of Mysore Shri Gourav Jajodia Lenin Sarani Director State Bank of Patiala Dist.: Burdwan Shri Manoj Kumar Banthia State Bank of Travancore West Bengal Independent Director The Bank of Rajasthan Ltd. Shri Gaurav Mathur Durgapur The Federal Bank Limited Independent Director G/1, Mangalpur UCO Bank Shri Vivek Chhachhi Industrial Complex, Independent Director Post - Baktarnagar Union Bank of India Shri Supratim Banerjee West Bengal United Bank of India Alternate Director to Shri Gaurav Mathur Vill: Banskopa West Bengal Financial Corporation Ltd. P.O. Rajbandh Company Secretary West Bengal Industrial Development Durgapur, Dist.: Burdwan Corporation Ltd. Shri Ajay Kumar Tantia West Bengal - 713202 West Bengal Infrastructure Development Statutory Auditors Durg Finance Corporation Ltd. M/s S.R. Batliboi & Co. Industrial Growth Centre, Borai 22, Camac Street Village & P.O. Rasmada, CONTENTS Block 'C', 3rd Floor Dist. Durg - 491 009 [1] Notice [8] Directors’ Report [15] Corporate Governance Report [27] Management Discussion and Kolkata - 700 016 Chhattisgarh, India Analysis Report [33] Auditors’ Report [36] Balance Sheet [37] Profit and Loss Account [38] Cash Flow Statement [40] Schedules [65] Balance Sheet Abstract [66] Statement Pursuant to Section 212 [67] Consolidated Accounts [92] Subsidiary Accounts A product [email protected] Jai Balaji Industries Limited NOTICE is hereby given that the Ninth Annual proposing his candidature for the office 8. To consider and, if thought fit, to pass, with General Meeting of the Members of Jai Balaji of Director of the Company, be and is or without modification(s), the following Industries Limited will be held on Thursday, hereby appointed as a Director of the Resolution as an Ordinary Resolution: the 18th September 2008, at 11:00 A.M. at Company, liable to retire by rotation." "RESOLVED THAT Shri Manoj Kumar Rotary Sadan (Shripati Singhania Hall), 94/2 6. To consider and, if thought fit, to pass, with Banthia who was appointed by the Board Chowringhee Road, Kolkata – 700 020 to or without modification(s), the following of Directors as an Additional Director of transact the following business: Resolution as an Ordinary Resolution: the Company with effect from 7th February 2008 and who holds office upto ORDINARY BUSINESS: "RESOLVED THAT Shri Shyam Bahadur the date of this Annual General Meeting 1. To receive, consider and adopt the Audited Singh who was appointed by the Board of of the Company in terms of Section 260 Profit and Loss Account for the financial Directors as an Additional Director of the of the Companies Act, 1956 and in respect year ended 31st March 2008 and the Company with effect from 17th of whom the Company has received a Audited Balance Sheet as on that date, December, 2007 and who holds office notice in writing from a member under together with the Reports of the Directors upto the date of this Annual General Section 257 of the Companies Act, 1956, and Auditors thereon. Meeting of the Company in terms of proposing his candidature for the office 2. To declare dividend on equity shares for Section 260 of the Companies Act, 1956 of Director of the Company, be and is the year ended 31st March 2008. and in respect of whom the Company has hereby appointed as a Director of the received a notice in writing from a Company, liable to retire by rotation." 3. To appoint a Director in place of Shri member under Section 257 of the Ashim Kumar Mukherjee, who retires by Companies Act, 1956, proposing his 9. To consider and, if thought fit, to pass, with rotation and being eligible, offers himself candidature for the office of Director of or without modification(s), the following for re-appointment. the Company, be and is hereby appointed Resolution as an Ordinary Resolution: 4. To appoint Auditors to hold office from as a Director of the Company, liable to "RESOLVED THAT Shri Satish Chander conclusion of this meeting until the retire by rotation." Gupta who was appointed by the Board of conclusion of the next Annual General Directors as an Additional Director of the 7. To consider and, if thought fit, to pass, with Meeting of the Company and to fix their Company with effect from 30th June or without modification(s), the following remuneration. 2008 and who holds office upto the date Resolution as an Ordinary Resolution: SPECIAL BUSINESS: of this Annual General Meeting of the "RESOLVED THAT Shri Gourav Jajodia who 5. To consider and, if thought fit, to pass, with Company in terms of Section 260 of the was appointed by the Board of Directors or without modification(s), the following Companies Act, 1956 and in respect of as an Additional Director of the Company Resolution as an Ordinary Resolution: whom the Company has received a notice with effect from 31st January 2008 and in writing from a member under Section "RESOLVED THAT Shri Shailendra Kumar who holds office upto the date of this 257 of the Companies Act, 1956, Tamotia who was appointed by the Board Annual General Meeting of the Company proposing his candidature for the office of of Directors as an Additional Director of in terms of Section 260 of the Companies Director of the Company, be and is hereby the Company with effect from 31st Act, 1956 and in respect of whom the appointed as a Director of the Company, October 2007 and who holds office upto Company has received a notice in writing liable to retire by rotation." the date of this Annual General Meeting from a member under Section 257 of the 10. To consider and, if thought fit, to pass, with of the Company in terms of Section 260 Companies Act, 1956, proposing his or without modification(s), the following of the Companies Act, 1956 and in respect candidature for the office of Director of Resolution as an Ordinary Resolution: of whom the Company has received a the Company, be and is hereby appointed notice in writing from a member under as a Director of the Company, liable to "RESOLVED THAT Shri Gaurav Mathur who Section 257 of the Companies Act, 1956, retire by rotation." was appointed by the Board of Directors ANNUAL REPORT 2007-08 as an Additional Director of the Company with or without modification(s), the candidature for the office of Director of with effect from 7th February 2008 and following Resolution as an Ordinary the Company, be and is hereby appointed who holds office upto the date of this Resolution: as a Director of the Company, who shall Annual General Meeting of the Company not be liable to retire by rotation." "RESOLVED THAT Shri Vivek Chhachhi who in terms of Section 260 of the Companies was appointed by the Board of Directors By Order of the Board Act, 1956 and in respect of whom the as an Additional Director of the Company For Jai Balaji Industries Limited Company has received a notice in writing with effect from 14th August 2008 and from a member under Section 257 of the who holds office upto the date of this Companies Act, 1956, proposing his Annual General Meeting of the Company candidature for the office of Director of Ajay Kumar Tantia in terms of Section 260 of the Companies the Company, be and is hereby appointed Company Secretary Act, 1956 and in respect of whom the as a Director of the Company, who shall Company has received a notice in writing Registered Office: not be liable to retire by rotation." from a member under Section 257 of the 5, Bentinck Street, Kolkata – 700 001 11.