P R E S S R E L E A S E

 
Jessop doubles Net Profit, declares dividend after 3 decades

 
Kolkata, 12 June 2006: Jessop & Co Ltd, the engineering company controlled by Kolkata-based Ruia Group since its disinvestment in August 2003, has more than doubled its net profit in a year, thanks to a vibrant economy and a booming infrastructure sector. JCL registered Net Profit of Rs 9.98 crore for the year 2005-06 against Rs 4.82 crore in 2004-05. The turnover of the company stood at Rs 78.76 crore compared to last year’s Rs 77.95 crore.

The Board of Directors of Jessop & Co Ltd, at its meeting on Monday 12 June, recommended a dividend of 8%, subject to approval of the shareholders. Commenting on the development, Mr P K Ruia, Chairman, JCL said: “It’s quintessentially a reflection of better cost control and effective outsourcing. We remain committed to generate more value for every stakeholder of JCL, be it employees, government or shareholders. With an order book position of Rs130 crore, the future looks brighter indeed for JCL. It will be a much stronger and more profitable company.”

Jessop & Co Ltd, a 218-year-old engineering giant was brought under the fold of Public Sector after independence, but suffered heavy losses in the first half of nineties and came under the purview of Board for Industrial and Financial Reconstruction (BIFR) in 1995. On 29 August 2003, JCL was taken over by a consortium of companies controlled by Mr P K Ruia. In 2004-05 the company was back in black showing net profit after a lapse of 15 years. It may be recalled that on 28 April 2006 Hon’ble BIFR passed an order discharging JCL from its purview following a capital restructuring of the company, which turned its networth positive.

For any clarifications on this issue, please feel free to contact Mr Dhrubajyoti Nandi at 2289 4747 or 98310 56023./span>