Jai Corp Ltd

Jai Corp Ltd

Jai Corp Limited (JCL) was incorporated in 6th June of the year 1985. The Company is engaged in manufacturing of Flexible intermediate bulk containers (FIBC Jumbo Bags) woven sacks and fabrics Master Batch PP Staple Fibre and Geotextiles spun yarn and production processing and trading of CR steel coils and sheets GP/GC Coils/Sheets and HR Coils / Plates and involved in investment advisory services development of land and buildings. Apart from expansion of its plastic processing business the company is now focusing and investing in emerging opportunities like developing SEZs infrastructure venture capital and real estate. The Company obtained Certificate of Commencement of Business in 12th June of the year 1985. After a month in July of the same year Jai Corp entered into the capital market with a public issue. JCL's own manufacturing facility with an installed capacity of 800 t.p.a at Murbad in Maharashtra was commenced commercial production in January of the year 1987 to manufacture HDPE/PP Woven Sacks. The second unit went on stream in January of the year 1990 with an installed capacity of 1200 t.p.a at Murbad for manufacturing of FIBC fabrics and HDPE/PP Woven sacks. The Company then had set up its third unit at Silvassa for manufacturing FIBC popularly known as Jumbo Bags where the commercial production commenced in February of the year 1992. The name of the company was changed from Jai Fibres Ltd to Jai Fibre Industries Ltd. A fresh certificate consequent to this name change was obtained in 6th December of the year 1993. Again the name was changed to Jai Corp Limited. As of 30th August 1994 consequent to the name change a fresh incorporation certificate was obtained. During the year 2000-01 the company had established technical services & development cell to optimize process energy consumption and machine development. The 100% Export Oriented Unit was established at Village Kahdoli Silvassa for manufacture of woven sacks fabric etc in the year 2002-03. The Company had discontinued its manufacturing operations at plastic processing unit situated at Rakholi (Silvassa) from November of the year 2003. Jai Corp had promoted three number of Special Purpose Vehicles (SPV) for generation transmission and distribution of Power to Special Economic Zone area. These SPVs are co-developer under the provisions of SEZ Act 2005. These Companies are as under Urban Energy Generation Pvt. Ltd Urban Energy Transmission Pvt. Ltd and Urban Energy Distribution Pvt. Ltd. In September of the year 2007 the company had acquired Urban Infrastructure Venture Capital Pet Fibres Urban Infrastructure Trustee and Prime Wovens. Venture Capital and Urban Infrastructure Trustee had become wholly owned subsidiaries of the company with effect from 20th September of the year 2007 and also in the same year with effect from 10th December Jai Realty Ventures became wholly owned subsidiary of the company. During the year 2007-08 the company made foray into the global real estate business through its subsidiary company based in Mauritius. Jai Corp had strategize its presence in the IT and Telecom business through one of the associate company Urban Infotech Solutions Pvt Ltd. During the year under review 375000 preference shares were redeemed at a premium in accordance with the terms of issue. After the redemption 7974900 preference shares remained outstanding as at 31st March 2014. During the current financial year 2014-15 300000 preference shares were redeemed at a premium in accordance with the terms of issue. The Board has approved redemption of another 300000 preference shares. At the 28th Annual General Meeting held on 28 September 2013 the shareholders had agreed to rollover these preference shares for a further period up to two years from the date these shares became due for redemption.During the year under review 900000 preference shares were redeemed at a premium in accordance with the terms of issue. After the redemption 7074900 preference shares remained outstanding as at 31st March 2015. During the current financial year 2015-16 210000 preference shares were redeemed and another tranche of 210000 will be redeemed at a premium in accordance with the terms of issue. At the 28th Annual General Meeting held on 28th September 2013 the shareholders had agreed to rollover these preference shares for a further period up to two years from the date these shares become due for redemption. The Directors have received approval of the preference shareholders to rollover the outstanding 6654900 preference shares for a further period of two years and will seek the approval of the equity shareholders at the ensuing 30th Annual General Meeting.During the year under review 630000 preference shares were redeemed at a premium in accordance with the terms of issue. After the redemption 6444900 preference shares remained outstanding as on 31st March 2016. During the current financial year 2016-17 150000 preference shares were redeemed. After this redemption 6294900 preference shares remained outstanding. At the 30th Annual General Meeting held on 23rd September 2015 the shareholders had agreed to rollover these preference shares for a further period up to two years from the date these shares become due for redemption i.e. up to 25th November 2017 with option for early redemption.During the year under review 345000 preference shares were redeemed at a premium in accordance with the terms of issue. After the redemption 6099900 preference shares remained outstanding as on 31st March 2017. During the current financial year 2017-1 840000 preference shares were redeemed. It is proposed to redeem another tranche of 270000 preference shares on 10th August 2017. After that redemption 4989900 preference shares shall remain outstanding. The Company is making continuous endeavor to redeem the preference shares and it is possible that more preference shares will be redeemed after 10th August 2017 till 25th November 2017. At the 30th Annual General Meeting held on 23rd September 2015 the equity shareholders had agreed to rollover these preference shares for a further period up to two years from the date these shares become due for redemption i.e. up to 25th November 2017 with option for early redemption. The Directors have received approval of the preference shareholders to rollover the preference shares that remain outstanding as at 25th November 2017 for a further period of two years and will seek the approval of the equity shareholders at the ensuing 32nd Annual General Meeting.During the year 2017 Assurene Products Corporation ceased to be a subsidiary company as this company was liquidated.During the year under review 3501900 preference shares were redeemed at a premium in accordance with the terms of issue. After the redemption 2598000 preference shares remained outstanding as on 31st March 2018. During the year 2018-19 450000 preference shares were redeemed at a premium in accordance with the terms of issue. Subsequently 360000 preference shares were redeemed at a premium in accordance with terms of issue. After that redemption 1788000 preference shares will remain outstanding. The Directors have received approval of the preference share holders to rollover preference shares that remain outstanding at 25th November 2019 for a further period of two years as with on option for early redemption and will seek the approval of the equity sharehoders at the ensuing 34th Annual General Meeting.In FY18-19 the Board of Directors had approved the Scheme of Amalgamation providing merger of its wholly owned subsidiary Jai Realty Ventures Limited with the Company subject to the approvals of the other necessary regulatory authorities. The accounts of Jai Realty Ventures Limited are already being consolidated with that of the Company.During FY19 the Board decided to close down the Company's wholly owned subsidiary Jai Corp Welfare Foundation (a company incorporated under Section 8 of the Companies Act 2013) and liquidate that company.During the FY2020. National Company Law Tribunal Mumbai Bench (NCLT) has approved the Scheme of Amalgamation (The Scheme) of Jai Realivventures Limited (JRVL)(a whollyowned subsidiary) with the Company vide its order dated 14 February. 2020. The Scheme became effective from 19 March 2020 the day on which the certified copy of the Scheme was filed with the Registrar of Companies Mumbai. Appointed date of the Scheme is 1st April 2019.The outbreak of COVID-19 virus continues to spread across the globe including India and has caused significant disturbance and slowdown of economic activity. Initially the Group had to discontinue its respective manufacturing facilities following nationwide lock down by the Government of India in the last week of March 2020. Operations at manufacturing facilities have resumed in a phased manner.The Board of Directors at its meeting held on 29 June 2020 has approved discontinuation of the operations of the spinning division of the group in a phased manner.During the quarter ended 31 December 2020the company has completed sale and transfer of Land & Building of one of the manufacturing units of the packaging division situated at Daman.