PRESS RELEASE

Jessop restructuring gets a boost from BIFR

Kolkata, 31 August: Jessop & Co Ltd has got a shot in the arm in the hearing before the BIFR today when the board allowed reduction of its capital base. The company at present has issued and subscribed capital of Rs 95.07 crore, while the accumulated loss stands at Rs 122.87 crore as on 31 March 2005. Permission to reduce the capital base will act as the first step toward the much-needed financial restructuring of the company. A resolution to reduce of the face value of the shares from Rs 10 to Re 1 had earlier been adopted in an extra-ordinary general meeting of Jessop’s shareholder

Welcoming the decision of the board, Mr P K Ruia, Chairman of Jessop & Co, said: “The management of Jessop hopes that the move initiated by BIFR will act as a catalyst toward positive networth and help Jessop to grow faster.”