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Jaiprakash Associates
BSE: 532532|NSE: JPASSOCIAT|ISIN: INE455F01025|SECTOR: Infrastructure - General
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« Mar 13
Accounting Policy Year : Mar '14
General:
 
 [i] The Accounts are prepared on the historical cost basis [except for
 certain assets which are revalued] comprising of mandatory Accounting
 Standard notified in Section 211 (3C) and other provisions of the
 Companies Act, 1956 to the extent applicable and the Companies Act 2013
 (to the extent notified & applicable).
 
 [ii] The Accounts are prepared on the principles of a going concern.
 
 [iii] Accounting policies not specifically referred to otherwise are
 consistent and in consonance with generally accepted accounting
 principles.
 
 Revenue Recognition:
 
 [i] Revenue is recognised when it can be reliably measured and it is
 reasonable to expect ultimate collection.
 
 [ii] Revenue from Sale of Goods transactions (excluding transactions
 for which Revenue recognition policy is specifically mentioned below)
 is recognised when significant risks and rewards of ownership have been
 transferred to the buyer and no significant uncertainty exists
 regarding amount of consideration. Cement Sales / Clinker Sales/ Others
 are net of Excise Duty/ Value Added Tax and exclusive of Self
 Consumption.
 
 [iii] Revenue from Sale of service transactions are recognised when no
 significant uncertainty exists regarding the amount of consideration
 that will be derived from rendering the service.
 
 [iv] Advances received for Time Share Weeks are reckoned as income in
 equal amounts spread over the Time Share period commencing from the
 year in which full payment is received.
 
 [v] Escalations/Claims are taken in the Accounts on the basis of
 receipt or as acknowledged by the client depending upon the certainty
 of receipt.
 
 [vi] Revenue from Real Estate Development of constructed properties is
 recognised based on the Percentage of completion method. Total sale
 consideration as per the legally enforceable agreements to sell entered
 into is recognised as revenue based on the percentage of actual project
 costs incurred to total estimated project cost, subject to such actual
 cost incurred being 30 percent or more of the total estimated project
 cost. Project cost includes cost of land, estimated cost of
 construction and development of such properties.  The estimates of the
 saleable area and costs are reviewed periodically and effect of any
 changes in such estimates recognised in the period such changes are
 determined. Where aggregate of the payment received from customers
 provide insufficient evidence of their commitment to make the complete
 payment, revenue is recognised only to the extent of payment received.
 
 Revenue from sale / sub-lease of undeveloped land is recognized when
 full consideration is received against agreement to sell / sub-lease,
 all significant risks and rewards are transferred to the customer and
 possession is handed over.
 
 Revenue from sale / sub-lease of developed land / plot is recognised
 based on the Percentage of completion method when a firm agreement
 has been entered into and 30 percent or more of the consideration is
 received and where no significant uncertainty exists regarding the
 amount of the consideration that will be derived from such sales and it
 is not unreasonable to expect ultimate collection, and all significant
 risks and rewards are transferred to the customer.
 
 The revenue in respect of projects undertaken on or after 1st April,
 2012 or where the revenue is being recognised for the first time after
 1st April, 2012 is recognised in accordance with the Guidance Note on
 Accounting for Real Estate Transactions [Revised 2012] issued by
 Institute of Chartered Accountants of India.
 
 [vii] (a) The costs that are incurred before a construction contract is
 secured are treated as expenses for the year in which these are
 incurred and charged to revenue.
 
 (b) The costs attributable to contracts are normally identified to
 respective contracts. However, the costs which cannot be
 identified/identifiable to a specified contract are charged to the
 general revenue in the year in which such costs are incurred.
 
 [viii] Dividend Income is recognized when right to receive payment is
 established.
 
 [ix] Interest is recognised on a time proportion basis taking into
 account the amount outstanding and the rate applicable.
 
 [x] Royalties are accounted on accrual basis in accordance with the
 terms of the relevant agreement.
 
 Use of Estimates:
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires estimates and assumptions to be
 made that affect the reported amounts of assets and liabilities on the
 date of the financial statements and the reported amounts of revenues
 and expenses during the reporting period.  Differences between actual
 results and estimates are recognised in the period in which the results
 are known/materialised.
 
 Fixed Assets:
 
 Fixed Assets are stated at Cost of acquisition or construction
 inclusive of freight, erection & commissioning charges, duties and
 taxes, expenditure during construction period, interest on borrowing
 and financial costs upto the date of acquisition/ installation and net
 of recoverable taxes. Major Expenditure in Hotel properties involving
 relocation and redesigning of various outlets, guest floors and
 additions thereto, enhancement in the value of assets and revenue
 generating capacity is capitalised. Foreign Exchange Rate Difference on
 long term monetary items arising on settlement or at reporting dates
 attributable to Fixed Assets is capitalised/adjusted in the carrying
 value of the Fixed Assets.
 
 Depreciation:
 
 [i] Depreciation on Fixed Assets is provided on Straight Line Method as
 per the classification and in the manner specified in Schedule-XIV to
 the Companies Act, 1956.
 
 [ii] Computer Softwares is amortized over a period of five years.
 
 [iii] Premium on Lease-hold Land [except in case of perpetual lease] is
 amortised over the period of lease.
 
 Investments:
 
 Long term Investments are stated at Cost and where there is permanent
 diminution in the value of investments a provision is made wherever
 applicable.  Current Investments are carried at lower of cost or
 quoted/ fair value, computed categorywise.
 
 Employee Benefits:
 
 Employee Benefits are provided in the books as per AS -15 (revised) in
 the following manner :
 
 [i] Provident Fund and Pension contribution - as a percentage of
 salary/wages is a Defined Contribution Plan and is accounted on accrual
 basis.
 
 [ii] Gratuity and Leave Encashment is a Defined Benefit obligation. The
 liability is provided for on the basis of actuarial valuation made at
 the end of each financial year.  The actuarial valuation is done as per
 Projected Unit Credit method.
 
 Inventories :
 
 [i] Inventories are valued at Cost or Net Realisable Value whichever is
 lower. Cost of Inventories comprises of cost of purchase, cost of
 conversion and other costs incurred in bringing the inventories to
 their present location and condition. Cost of Raw Materials,
 Construction Materials, Stores & Spares, Packing Materials, Stock of
 Food & Beverages, Operating Stores and supplies is determined on
 Weighted Average basis.
 
 [ii] Work-in-Progress/Stock-in-Process are valued at cost.  In case of
 Item Rate Contract work in progress is measured on the basis of
 physical measurement of work actually completed as at the balance sheet
 date.  In case of cost plus contracts work in progress is taken as cost
 not billed on the contractee.
 
 [iii] Stock of Finished Goods lying in the factory premises includes
 excise duty, pursuant to accounting standard [AS-2] [Revised].
 
 Project Under Development :
 
 Project Under Development includes cost of Land purchased and other
 costs incurred including internal development and external development
 charges, construction cost, material cost, cost of services and other
 related costs.
 
 Foreign Currency Transactions:
 
 [i] Transactions denominated in Foreign Currency are recorded in the
 Books of Account in Indian Rupees at the rate of exchange prevailing on
 the date of transaction.
 
 [ii] Monetary Assets and Liabilities related to Foreign Currency
 transactions and outstanding, except assets and liabilities hedged by a
 hedge contract, at the close of the year, are expressed in Indian
 Rupees at the rate of exchange prevailing on the date of Balance Sheet.
 The exchange difference arising either on settlement or at reporting
 date is recognised in the Statement of Profit & Loss except in cases
 where they relate to acquisition of fixed assets, in which case they
 are adjusted to the carrying cost of such assets.
 
 [iii] Monetary Assets and Liabilities hedged by a hedge contract are
 expressed in Indian Rupees at the rate of exchange prevailing on the
 date of Balance Sheet adjusted to the rates in the hedge contracts. The
 exchange difference arising either on settlement or at reporting date
 is recognised in the Statement of Profit & Loss except in cases where
 they relate to acquisition of fixed assets, in which case they are
 adjusted to the carrying cost of such assets. Premium paid in respect
 of Hedge Contracts are recognised in the Statement of Profit & Loss,
 except in case where they relate to the acquisition or construction of
 fixed assets, in which case, they are adjusted to the carrying cost of
 such assets.
 
 [iv] The Company uses foreign currency contracts to hedge its risks
 associated with foreign currency fluctuations.  The Company does not
 use derivative financial instrument for speculative purposes.
 
 [v] Non Monetary foreign currency items are carried at cost.
 
 Lease Rentals:
 
 [i] Operating Leases: Rentals are expensed with reference to lease
 terms.
 
 [ii] Finance Leases: The lower of the fair value of the assets and
 present value of the minimum lease rentals is capitalised as fixed
 assets with corresponding amount shown as lease liability. The
 principal component in the lease rental is adjusted against the lease
 liability and the interest component is charged to Statement of Profit
 & Loss.
 
 Research and Development:
 
 Revenue expenditure on Research and Development is charged to Statement
 of Profit & Loss in the year in which it is incurred. Capital
 expenditure on Research and Development is shown as an addition to
 Fixed Assets.
 
 Miscellaneous Expenditure:
 
 Share/Debenture Issue Expenses are adjusted against Security Premium
 Reserve in the year in which they are incurred.
 
 Incidental Expenditure During Construction Period:
 
 Incidental Expenditure incurred on projects/assets during
 construction/implementation is capitalised and apportioned to
 projects/assets on commissioning.
 
 Earnings Per Share:
 
 Basic earnings per equity share is computed by dividing net profit
 after tax by the weighted average number of equity shares outstanding
 during the year.  Diluted earnings per equity share is computed by
 dividing adjusted net profit after tax by the aggregate of weighted
 average number of equity shares and dilutive potential equity shares
 during the year.
 
 Borrowing Costs:
 
 Borrowing Costs that are attributable to the acquisition or
 construction of qualifying assets are capitalised as part of the cost
 of such assets. A qualifying asset is one that takes substantial period
 of time to get ready for intended use or sale. All other borrowing
 costs are charged to Statement of Profit & Loss.
 
 Segment Reporting:
 
 Revenue, operating results, assets and liabilities have been identified
 to represent separate segments on the basis of their relationship to
 the operating activities of the segment. Assets, Liabilities, Revenue
 and Expenses which are not allocable to separate segment on a
 reasonable basis, are included under Unallocated.
 
 Taxes on Income:
 
 Current Tax is determined as per the provisions of the Income Tax Act
 in respect of Taxable Income for the year. Deferred Tax Liability is
 computed as per Accounting Standard [AS-22]. Deferred Tax Asset and
 Deferred Tax Liability are computed by applying tax rates and tax laws
 that have been enacted or substantively enacted by the Balance Sheet
 Date.
 
 Impairment of Assets:
 
 If the carrying amount of Fixed Assets exceeds the recoverable amount
 on the reporting date, the carrying amount is reduced to the
 recoverable amount and an impairment loss is charged to the Statement
 of Profit & Loss. The recoverable amount is measured as the higher of
 the net selling price or the value in use determined by the present
 value of estimated future cash flows. The impairment loss recognised in
 prior accounting period is reversed if there has been a change in the
 estimate of the recoverable amount.
 
 Provisions, Contingent Liabilities and Contingent Assets :
 
 Provisions involving substantial degree of estimation in measurement
 are recognised when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent Liabilities are not recognised but are disclosed in the
 notes unless the possibility of an outflow of resources embodying
 economic benefits is remote. Contingent Assets are neither recognised
 nor disclosed in the financial statements. The Provisions, Contingent
 Liabilities and Contingent Assets are reviewed at each Balance Sheet
 date.
 
 Accounting for Oil Activity:
 
 The Company has adopted Full Cost Method of Accounting for its Oil &
 Gas Exploration Activity and all costs incurred in Acquisition,
 Exploration and Development are accumulated.
 
 Premium on Redemption of Debentures
 
 Premium paid/ payable on Redemption of Debentures, net of tax impact,
 is adjusted against the Securities Premium Reserve.
 
 2.1 Issued, Subscribed and Paid-up Share Capital in number comprises of
 
 Shares for consideration in cash 20,219,850 Equity Shares [Previous
 Year 2,02,19,850] allotted under Jaypee Employees Stock Purchase
 Scheme 2002;
 
 12,500,000 Equity Shares [Previous Year 1,25,00,000] allotted under
 Jaypee Employees Stock Purchase Scheme 2009;
 
 201,623,717 Equity Shares [Previous Year 20,16,23,717] allotted for
 cash on conversion of Foreign Currency Convertible Bonds; 10,000,000
 Equity Shares [Previous Year 1,00,00,000] allotted for cash to
 Promoters on Preferential Basis and 64,204,810 Equity Shares [Previous
 Year 6,42,04,810] allotted through Qualified Institutional Placement as
 on 06.02.2013.
 
 Shares for consideration other than cash 860,865,055 Equity Shares
 [Previous Year 86,08,65,055] allotted in terms of the Scheme of
 Amalgamation effective from 11.03.2004;
 
 124,378,825 Equity Shares [Previous Year 12,43,78,825] allotted in
 terms of Scheme of Amalgamation effective from 22.08.2006;
 
 218,010,985 Equity Shares [Previous Year 21,80,10,985] allotted
 pursuant to Scheme of Amalgamation effective from 27.05.2009 and
 707,280,317 Equity Shares [Previous Year 70,72,80,317] allotted as
 Bonus Shares .
 
 2.3 Terms / Rights
 
 The Company has issued only one class of equity shares having a par
 value of Rs. 2/- per share. Each holder of equity share is entitled to
 one vote per share. Each share is entitled to equal dividend declared
 by the Company and approved by the Share holders of the Company.
 
 In the event of liquidation, each share carries equal rights and will
 be entitled to receive equal amount per share out of the remaining
 amount available with the Company after making preferential payments.
 
 [b] Term Loans of Rs. 1232500 Lakhs [Amount outstanding Rs. 1056915 Lakhs]
 sanctioned by Financial Institutions, Banks together will all interest,
 liquated damages, premia on pre-payment or on redemption, costs,
 expenses and other monies, stipulated in the Loan Agreements are
 secured by First Charge ranking pari pasu with all the lenders save and
 except AKA Export Finance Bank [Amount outstanding as at 31.03.2014 - Rs.
 3681 Lakhs] and LIC of India [Amount outstanding as on 31.03.2014 - Rs.
 346 Lakhs] who are having prior charge on specific Fixed Assets, in
 favour of Axis Trustee Services Limited [Security Trustee], holding
 security for the benefit of all lenders on all the movable and
 immovable fixed assets of the Company except Fixed Assets pertaining to
 Wind Power Division, Real Estate Division, Fixed Assets specifically
 charged to State Government / State Financial Insitutions for availing
 interest free loans etc., under various schemes framed by State
 Governments and any other assets specifically charged. Term Loan of Rs.
 40000 Lakhs sanctioned by IFCI Ltd., is further secured by way of
 Exclusive Charge over 5.48 acres of Commercial Land situated at Jaypee
 Sports City near F1 Stadium, SDZ, Sector 25, Gautam Budh Nagar, Uttar
 Pradesh. The Company has entered into an Agreement to Sell with
 Jaypee Sports International Ltd., on 29.03.2014 for purchase of 33.48
 acres of Land and the said land is yet to be transferred/sub-lease in
 the name of the Company [Security is yet to created].  Term Loan of Rs.
 150000 Lakhs sanctioned by ICICI Bank Ltd., is further secured by way
 of (i) exclusive charge on all immovable properties admeasuring 100
 acres of Land at Jaypee Infratech Ltd., situated at Village - Tappal,
 Tehsil - Khair, Distt. - Aligarh, Uttar Pradesh together with all
 buildings and structures thereto and all Plant & Machinery attached to
 the earth or permanently fastened to anything attached to the earth,
 both present and future (ii) pledge over 18,93,16,882 equity shares of
 the Company held in various Trusts on first pari passu charge on basis
 with RTL of Rs. 130000 Lakhs sanctioned by ICICI Bank Ltd. Term Loan of Rs.
 75000 Lakhs sanctioned by State Bank of India is further secured by way
 of [i] exclusive charge over 22.2078 acres of Commercial Land situated
 at Jaypee Sports City near F1 Stadium, SDZ, Sector 25, Gautam Budh
 Nagar, Uttar Pradesh. [ii] pledge of 10 crores equtiy shares of Jaypee
 Infratech Ltd., held by Jaiprakash Associates Ltd. (iii) second pari
 passu charge on current assets of the Company.
 
 [c] Term Loans of Rs. 21300 Lakhs (Amount outstanding - Rs. 21300 Lakhs)
 sanctioned by Export Import Bank of India are secured by First Charge
 ranking pari passu with all the lenders save and except AKA Export
 Finance Bank [Amount Outstanding as at 31.03.2014 - Rs. 3681 Lakhs] and
 LIC of India [Amount Outstanding as at 31.03.2014- Rs. 346 Lakhs] who are
 having prior charge on specific Fixed Assets, in favour of Axis Trustee
 Services Limited [Security Trustee], holding security for the benefit
 of all lenders, on all the Movable Fixed Assets of the Company except
 Fixed Assets pertaining to Wind Power Division, Real Estate Division,
 Fixed Assets specifically charged to State Government / State Financial
 Insitutions for availing interest free loans etc., under various
 schemes framed by State Governments and any other assets specifically.
 
 [d] Term Loans sanctioned by ICICI Bank - Rs. 130000 Lakhs, Canara Bank -
 Rs. 20000 Lakhs, L & T Infrastructure Finance Co.  Ltd. - Rs. 10000 Lakhs,
 Syndicate Bank - Rs. 10000 Lakhs and Bank of Maharastra - Rs. 30000 Lakhs,
 Canara Bank - Rs. 50000 Lakhs, Yes Bank Ltd. - Rs. 20000 Lakhs, aggregating
 to Rs. 270000 Lakhs [ Amount outstanding Rs. 243699 Lakhs] together with
 all interest, liquidated damages, premia on prepayment or on
 redemption, costs, expenses and other monies, stipulated in the Loan
 Agreements are secured by way of Subservient charge on all the fixed
 Assets of the company except the fixed assets pertaining to Wind Power
 Division, Real Estate Division and Fixed assets specifically charged to
 State Government /State Financial Institutions for availing interest
 free loans etc. under various schemes framed by State Governments. (1)
 Term loan of Rs. 130000 Lakhs sanctioned by ICICI Bank is further secured
 by way of (i) pledge of 18,93,16,882 Equity shares of the Company held
 through various trusts whose beneficiary is the Company, (ii) pledge of
 7,50,000 - 11% Cumulative Preference Shares of Himalyan Expressway
 Limited and (iii) pledge of 1,02,12,000 12% Preference Shares of Jaypee
 Agra Vikas Ltd., owned by the Company. (2) Term Loan of Rs. 50000 Lakhs
 sanctioned by Canara Bank is further secured by way of Exclusive Charge
 over 25.007 acres of Commercial Land situated at Jaypee Sports City
 near F1 Stadium, SDZ Sector-25, Gautam Budh Nagar, Uttar Pradesh. (3)
 Term Loan of Rs. 20000 Lakhs sanctioned by Yes Bank Ltd. is further
 secured by way of exclusive charge over 11.3095 acres of Commercial
 Land situated at Jaypee Sports City near F1 Stadium, SDZ Sector-25,
 Gautam Budh Nagar, Uttar Pradesh.
 
 [e] Term Loans sanctioned by SREI - Rs. 16500 Lakhs [Amount outstanding Rs.
 2063 Lakhs] together with all interest, liquidated damages, premia on
 prepayment or on redemption, costs, expenses and other monies,
 stipulated in the Loan Agreements secured by way of Subservient charge
 on moveable Fixed Assets of Engineering Division of the Company..
 
 [f] Term Loans sanctioned by SREI - Rs. 9500 Lakhs [Amount outstanding Rs.
 6530 Lakhs] together with all interest, liquidated damages, premia on
 prepayment or on redemption, costs, expenses and other monies,
 stipulated in the Loan Agreements secured by way of exclusive charge on
 specific moveable Fixed Assets at Amelia Coal Block..
 
 [g] Term Loans sanctioned by Axis Bank Ltd. Rs. 35000 Lakhs, The South
 Indian Bank Rs. 10000 Lakhs and State Bank of Travancore Rs. 15000 Lakhs
 aggregating of Rs. 60000 Lakhs [Amount outstanding Rs. 60000 Lakhs]
 together with all interest, liquidated damages, premia on prepayment or
 on redemption, costs, expenses and other monies, stipulated in the Loan
 Agreements secured by way of First Charge ranking Pari Passu basis on
 17.52 acres of Hotel & Commercial Land purchased from Jaypee Infratech
 Ltd. in Village - Wazidpur, Sector -129, Noida. Entire Sale
 consideration has been paid by the Company to Jaypee Infratech Limited
 and (ii) First Charge ranking Pari Passu on 10 acres of Commercial Land
 of Jaypee Infratech Ltd. situated at Sector - 128, Noida.
 
 [h] External Commercial Borrowing of USD 27 Million and Yen 1030.27
 Million availed [Amount outstanding USD 9.524 Million and Yen 408.837
 Million] from ICICI Bank Ltd for setting up of Wind Power Project in
 Maharashtra & Gujarat together with all interest, liquidated damages,
 premia on prepayment or on redemption, costs, expenses and other
 monies, stipulated in the Loan Agreements, is secured by equitable
 mortgage of immovable properties and Hypothecation of movable assets of
 Wind Power Project [present and future], save and except book debts
 subject to prior charge on specified movables created in favour of the
 Company''s Bankers for working Capital facilities.
 
 [i] Term Loans sanctioned by Standard Chartered Bank Rs. 40000 Lakhs and
 Rs. 45000 Lakhs [Amount outstanding Rs. 78340 Lakhs] are secured against
 first charge ranking pari passu by way of equitable mortgage by deposit
 of title deed over the land admeasuring 356.56 acres at Jaypee Greens
 Golf Course, Greater Noida, Uttar Pradesh and collaterally secured by
 first charge ranking pari passu by way of Registered mortgage over land
 of Jaypee Infratech Ltd. admeasuring 40.1735 acres (residential 25.0040
 acres and commercial 15.1695 acres) situated at village Sultanpur,
 Noida, Uttar Pradesh and Village Wazidpur, Noida, Uttar Pradesh. Out of
 the said 40.1735 acres of land, the Company has entered into an
 Agreement to Sell with Jaypee Infratech Limited on 15.12.2009 for
 purchase of 15.1695 acres of commercial land and entire sale
 consideration has been paid to Jaypee Infratech Limited.
 
 [j] Term Loan sanctioned by HDFC Limited Rs. 45000 Lakhs [Amount
 outstanding Rs. 39447 Lakhs] is secured against first & exclusive charge
 by way of Registered Mortgage over (a) Leasehold property admeasuring
 project land of 14.20 acres at Jaypee Greens which is part and parcel
 of 452.26 acres of the integrated Township Jaypee Greens Greater Noida,
 U.P. alongwith construction thereon both present and future (b)
 Leasehold property admeasuring 38.20 acres at Noida, U.P. designated
 for the construction of Kalyspo Court 1-10 (B-1), Kalyspo Court
 11,12,14,15,16 (B-3), imperial Court 1-3 (B-2) Pelican (PD-1 & PD-2) in
 the integrated Township in the name and style of Wish Town, Noida, U.P.
 The said land is registered in the name of Jaypee Infratech Limited and
 entire sale consideration has been paid by the Company to Jaypee
 Infratech Limited. and (c) First Charge on Project Land/FSI of
 11,01,954 Sq. feet of B 10, Suncourt A & Town Centre Residential in
 Jaypee Greens, Greater Noida with construction thereon, present and
 future.
 
 [k] Term Loan sanctioned by Standard Chartered Bank - Rs. 35000 Lakhs,
 Allahabad Bank - Rs. 10000 Lakhs, Karur Vysya Bank - Rs. 5000 Lakhs, The
 South Indian Bank - Rs. 10000 Lakhs and United Bank of India - Rs. 15000
 Lakhs aggregatting to Rs. 75000 Lakhs [Amount Outstanding - Rs. 75000
 Lakhs] are secured by way of exclusive First Charge on pari- passu
 basis over 65.0263 Acres of Commercial Land situated at Jaypee Sports
 City near F1 Stadium, SDZ Sector-25, Gautam Budh Nagar, U.P.
 
 [l] Term Loan sanctioned by Yes Bank Ltd. - Rs. 52500 Lakhs [Amount
 Outstanding - Rs. 52500 Lakhs] is secured by way of exclusive charge over
 28 acres of Commercial Land situated at Jaypee Sports City near F1
 Stadium, SDZ Sector-25, Gautam Budh Nagar, Uttar Pradesh. The Company
 has entered into an Agreement to Sell with Jaypee Sports
 International Ltd. on 29.03.2014 for purchase of 33.48 acres of Land
 and the said land is yet to be transferred/sub-lease in the name of the
 Company.
 
 [m] Security includes security created / yet to be created.
 
 4.3 Loans from State Government :
 
 [i] Interest Free Loans granted by U.P.Financial Corporation (UPFC)
 under Audyogik Nivesh Protshahan Yojna Scheme at Grinding Unit in Tanda
 (U.P.) are secured by way of First Charge on the Fixed Assets of the
 respective Unit of the Company. The same is repayable on or before
 completion of 10 years from the day on which it is received.  Repayment
 will commence from F.Y. 2016-17.
 
 [ii] Interest free loan granted by DIC, Panipat, Haryana at Grinding
 Unit in Panipat (Haryana) is secured against Bank Guarantee. The same
 is repayable on or before completion of 5 years from the day on which
 it is received.  Repayment will commence from F.Y. 2014-15.
 
 [iii] Interest Free Loans granted by Pradeshiya Industrial & Investment
 Corporation Limited at Grinding Unit in Sikandrabad (U.P.) is secured
 against Bank Guarantee. The same is repayable on or before completion
 of 10 years from the day on which it is received. Repayment will
 commence from F.Y. 2022-23.
 
 4.4 Advances from Clients includes loan granted by Client for purchase
 of Plant & Machinery for the Contract on Hypothecation of Construction
 Material and Plant & Equipment.
 
 4.5 Details of Foreign Currency Convertible Bonds (Unsecured) at Note
 No.4[II]A are given as under :
 
 [a] The Company has issued 1,50,000, 5.75% Foreign Currency Convertible
 Bonds [FCCB-2012] of USD 1,000 each aggregating to USD 150 Million at
 par on 07.09.2012. These Bonds are convertible at the option of
 bond-holders into equity shares of Rs. 2/- each fully paid at the
 conversion price of Rs. 77.50 per share, subject to the terms of issue,
 with a fixed rate of exchange of Rs. 55.67 equal to USD 1.00 at any time
 on or after 18.10.2012 and prior to the close of business on
 01.09.2017.
 
 No conversion has taken place during F.Y. 2013-14 [Previous Year 39,600
 FCCBs of USD 1,000 each aggregating to USD 39.60 Million were converted
 into 2,84,45,567 Equity Shares of Rs. 2/- each]. Unless previously
 converted, the bonds are redeemable at maturity on 08.09.2017.
 
 4.6.2 Jaypee Infratech Limited [subsidiary company] has provided a
 letter of Comfort to ICICI Bank UK Plc [at Sl. No 2 above] and ICICI
 Bank Canada [at Sl. No 3 above] for the financial assistance of GBP
 34.84 Million [equivalent to USD 50 Million] and CAD 61.625 Million
 [equivalent to USD 50 Million] respectively.
 
 4.6.3 External Commercial Borrowing from State Bank of India, Hongkong
 Branch [at Sl. No 4 above] has been secured by way of Corporate
 Guarantee by Jaiprakash Power Ventures Ltd. [JPVL], a subsidiary
 Company.
 
 4.7 Unsecured Loan taken from Banks at Note No.4[II]C is Loan taken
 from SIDBI in foreign currency [Amount Outstanding Rs. 19932 Lakhs
 (Previous Year Rs. 21295 Lakhs)] repayable in 14 equal half yearly
 installments from 30.06.12 to 30.12.18.
 
 4.8 The Company accepts Fixed Deposit under Fixed Deposits Scheme from
 Public which are repayable in one year, two years and three years.
 
 8.1 Secured Term Loans from Banks :
 
 (i) Short Term Loan of Rs. 125000 Lakhs [Amount Outstanding Rs. 124000
 Lakhs] sanctioned from Axis Bank Limited is secured by way of (i)
 pledge of 18,82,48,200 Equity Shares and 3,00,00,000 Preference Shares
 of Jaypee Cement Corporation Ltd. [JCCL] held by the Company, (ii) Non
 Disposal Undertaking for 43,92,45,800 Equity Shares and 7,00,00,000
 Preference Shares of JCCL held by the Company, (iii) exclusive charge
 over A-2 Building [5 Star Resort cum SPA] admeasuring 30813.0 Sq.
 Meters [7.603 Acres] land along with building constructed thereon and
 other assets such as furniture and fixtures, equipments, machinery -
 fixed and movable, structures and any other assets situated at Jaypee
 Greens, Greater Noida, (iv) subservient charge on all movable Fixed
 Assets and Current Assets of the Company and (v) hypothecation of
 Receivable from JCCL to the extent of Rs. 1513.28 Crores.
 
 (ii) Working Capital Demand Loan of Rs. 10000 Lakhs availed from Axis
 Bank Limited secured by way of Subservient and Subsequent Charge over
 the Current Assets of the Company.
 
 (iii) Short Term Loan of Rs. 100 Lakhs [Previous Year Rs. 200 Lakhs]
 availed from Union Bank of India is secured against Fixed Deposits with
 the Bank.
 
 (iv) Short Term Loan of Rs. 50 Lakhs [Previous Year Rs. 200 Lakhs] availed
 from Oriental Bank of Commerce is secured against Fixed Deposits with
 the Bank.
 
 (v) Short Term Loan of Rs. 500 Lakhs availed from State Bank of India is
 secured against Fixed Deposits with the Bank.
 
 (vi) Short Term Loan of Rs. 20000 Lakhs [Amount Outstanding Rs. 20000
 Lakhs] availed from Yes Bank Ltd. is secured by way of subservient
 charge on all fixed assets of the company except the fixed assets
 pertaining to Wind Power, Real Estate Division and fixed assets
 specifically charged to State Govt./State Financial Institutions for
 availing incentive/interest free loans etc. and Non Disposal
 Undertaking in respect of 9,89,01,000 Equity Shares of Rs. 10/- each of
 Bokaro Jaypee Cement Limited held by the Company.
 
 8.2 Working Capital Loans:
 
 (i) The Working Capital facilities [Fund based - Rs. 500 Crores. and Non
 Fund based - Rs. 4265 Crores.] sanctioned by the Consortium of 19 member
 Banks with Canara Bank, as Lead, are secured by way of first charge
 ranking pari passu on Current Assets of the Company i.e. Hypothecation
 of Stocks of Raw Materials, Work-in-Progress, Stock- in-Process,
 Finished Goods, Stores & Spares and Book Debts and second charge
 ranking pari passu on the Fixed Assets of the Company [except Fixed
 Assets pertaining to Wind Power Division, Real Estate Division and
 Fixed assets specifically charged to State Government /State Financial
 Institutions for availing interest free loans etc.] and other assets
 specifically charged on specific loans. Further Jammu and Kashmir Bank
 Ltd. and IDBI Bank Ltd.  have converted their Non Fund Based Limits
 [within Consortium] into Fund Based Limits to the extent of Rs. 10000
 Lakhs [Amount Outstanding Rs. 10000 Lakhs] and Rs. 5000 Lakhs [Amount
 Outstanding Rs. 5000 Lakhs] respectively.
 
 (ii) Overdraft Facility from ICICI Bank Ltd., of Rs. 17500 Lakhs [Amount
 outstanding Rs. 16975 Lakhs] carved-out from existing Non Fund based
 working capital facility sanctioned under consortium is further secured
 by way of Extention of Mortgage on all Immovable Properties admeasuring
 100 Acres of Land of Jaypee Infratech Ltd.  situated at Village -
 Tappal, Tehsil - Khair, Distt.- Aligarh, Uttar Pradesh together with
 all buildings and structures thereto and all plant and machinery
 attached to the earth or permanently fastened to anything attached to
 the earth, both present and future.
 
 NOTE No. 13.2
 
 The Trusts are holding shares of 18,93,16,882 Equity Shares [Previous
 Year 18,93,16,882] of Rs. 2/- of Jaiprakash Associates Limited, the sole
 beneficiary of which is the Company. [The Market Value of Shares held
 in Trusts is Rs. 1,01,663 Lakhs (Previous Year Rs. 1,23,908 Lakhs)]
 
 NOTE No. 13.3
 
 All Investments are Non-trade Investments.
 
 NOTE No. 13.4
 
 Since the Market Rate of Saket Project Limited was not available in any
 of the Stock Exchanges, Market Value has been considered equivalent to
 Face Value.
 
 20.1 Term Deposits with Original Maturity less than three months
 includes Rs. 94 Lakhs [Previous Year Rs. 17 Lakhs] pledged as Guarantees /
 Margin Money with Banks and Others.
 
 20.2Term Deposits with Maturity less than twelve months includes Rs.
 14387 Lakhs [Previous Year Rs. 1359 Lakhs] pledged as Guarantees / Margin
 Money [including Rs. 345 Lakhs (Previous Year Rs. 274 Lakhs) pledged as
 Performance Guarantees] with Banks and Others.
 
 20.3 Balances with Banks in Current Account in Foreign Currency
 includes Iraqi Dinars 27,377 Million equivalent to Rs. 10 Lakhs which are
 not available for use by the Company.
 
 20.4 Term Deposits with Maturity less than twelve months includes Rs.
 16000 Lakhs [Previous Year Rs. 19100 Lakhs] earmarked for repayment of
 Public Deposits & Non - Convertible Debentures..
Source : Dion Global Solutions Limited
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