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Moneycontrol.com India | Notes to Account > Infrastructure - General > Notes to Account from Jaiprakash Associates - BSE: 532532, NSE: JPASSOCIAT
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Jaiprakash Associates

BSE: 532532|NSE: JPASSOCIAT|ISIN: INE455F01025|SECTOR: Infrastructure - General
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Notes to Accounts Year End : Mar '17

1 The Trusts at Sl.No.[IV] are holding shares of 18,93,16,882 Equity Shares [31st March, 2016 18,93,16,882, 1st April, 2015 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, 26,031 Lakhs [31st March, 2016 Rs, 14,577 Lakhs, 1st April, 2015 Rs, 46,951 Lakhs].

2 Term Deposits with Original Maturity less than three months includes Rs, 2429 Lakhs [31st March, 2016 Rs, 8 Lakhs, 1st April, 2015 Rs, 7 Lakhs] pledged as Guarantees / Margin Money with Banks and Others.

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.

4 Term Deposits with Maturity less than twelve months includes Rs, 2752 Lakhs [31st March, 2016 Rs, 2034 Lakhs, 1st April, 2015 Rs, 14527 Lakhs] pledged as Guarantees / Margin Money pledged with Banks and Others

“5 Term Deposits with Maturity less than twelve months includes Rs, Nil [31st March, 2016 Nil, 1st April, 2015 Rs, 16000 Lakhs] earmarked for repayment of Public Deposits.

“6 Term Deposits excludes deposits with original maturity of less than three months.

7 Issued, Subscribed and Paid-up Share Capital in number comprises of Shares for consideration in cash 2,02,19,850 Equity Shares allotted under Jaypee Employees Stock Purchase Scheme 2002;

1.25.00.000 Equity Shares allotted under Jaypee Employees Stock Purchase Scheme 2009; 20,16,23,717 Equity Shares allotted for cash on conversion of Foreign Currency Convertible Bonds;

1.00.00.000 Equity Shares allotted for cash to Promoters on Preferential Basis;

6,42,04,810 Equity Shares allotted through Qualified Institutional Placement as on 06.02.2013 and 21,33,73,416 Equity Shares allotted through Qualified Institutional Placement as on 08.07.2014.

Shares for consideration other than cash

86,08,65,055 Equity Shares allotted in terms of the Scheme of Amalgamation effective from 11.03.2004; 12,43,78,825 Equity Shares allotted in terms of Scheme of Amalgamation effective from 22.08.2006; 21,80,10,985 Equity Shares allotted pursuant to Scheme of Amalgamation effective from 27.05.2009 and 70,72,80,317 Equity Shares allotted as Bonus Shares effective from 19.12.2009.

The Company has transferred a portion of the net profit of the Company before declaring dividend to general reserve pursuant to the earlier provisions of Companies Act 1956. Mandatory transfer to general reserve is not required under the Companies Act 2013.

Securities Premium Reserve:

The amount received in excess of face value of the equity shares is recognized in Securities Premium Reserve. Capital Redemption Reserve:

The Company has recognized Capital Redemption Reserve on buyback of equity shares from its retained earnings. The amount in Capital Redemption Reserve is equal to nominal amount of the equity shares bought back. Debenture Redemption Reserve:

The Company has recognized Debenture Redemption Reserve [DRR] as per the provisions of the Companies Act 1956. As per the provision, the Company shall credit adequate amount to DRR from its profits every year until such debentures are redeemed. The amount credited to DRR shall not be utilised by the Company except for the redemption of debentures.

Share Forfeited Account

Share forfeited account represents the amount of shares forfeited due to cancellation of shares. The forfeited share can be re-issued at discount or at premium.

Retained Earnings:

Retained earnings are the profit or loss that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.

Non Convertible Debentures as stated in Note No.14.1[a] above are further secured by way of First Charge ranking pari passu with all the lenders specified at S. No.14.2 (b) save and except AKA Export Finance Bank [Amount Outstanding as at 31st March, 2017 - Rs, 2661 Lakhs] having prior charge on specific Fixed Assets, in favour of respective Debenture Trustees for the benefit of all Debenture Holders, on all the movable and immovable Fixed Assets of the company except Fixed assets pertaining to 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 the State Governments and any other assets specifically charged. Further, the NCDs stated above alongwith term loans specified in Sl. No.14.2(b) are also secured by way of First Pari-Passu charge over Land of the Company admeasuring 588.42 acres forming part of Non-Core Area at Jaypee Sports City near F-1 Stadium, Special Development Zone (SDZ), Sector-25, Gautam Budh Nagar, Uttar Pradesh & First Pari-Passu charge over Land admeasuring 166.96 Acres situated at Village Tappal, Kansera & Jahengarh, Aligarh, Uttar Pradesh & Land admeasuring 167.23 Acres situated at Village Chagan and Chhalesar, Agra, Uttar Pradesh, both land belonging to Jaypee Infratech Limited.

* including Rs, 19174 lakhs as prepaid financing charges as at 31st March, 2017

[b] Term Loans of Rs,1924050 Lakhs sanctioned [Amount outstanding Rs, 1404490 Lakhs] by Financial Institutions, Banks together with all interest, liquidated 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 31.03.2017 - Rs, 2661 Lakhs having prior charge on Fixed Assets pertaining to Himachal Cement Plant] 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 Real Estate Division, Fixed Assets specifically charged to State Government / State Financial Institutions for availing interest free loans etc., under various schemes framed by State Governments and any other assets specifically charged. Further, these Loans along with Debentures as mentioned in Sl No.14.1[c] are secured by way of First Pari-Passu charge over Land of the Company admeasuring 588.42 acres forming part of Non-Core Area at Jaypee Sports City near F-1 Stadium, Special Development Zone [SDZ], Sector-25, Gautam Budh Nagar, Uttar Pradesh & First Pari-Passu charge over Land admeasuring 166.96 Acres situated at Village Tappal, Kansera & Jahengarh, Aligarh, Uttar Pradesh & Land admeasuring 167.23 Acres situated at Village Chagan and Chhalesar, Agra, Uttar Pradesh both land belonging to Jaypee Infratech Limited. In addition to above

(1) Term Loan of Rs, 40000 Lakhs sanctioned by IFCI Ltd., [at Sl. No.44 above] 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.

(2) Term Loan of Rs, 150000 Lakhs sanctioned by ICICI Bank Ltd. [at Sl.No.49 above] is further secured by way of (i) pari-passu charge 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 & Machinery attached to the earth or permanently fastened to anything attached to the earth, both present and future (ii) pledge of 18,93,16,882 equity shares of the Company held in various Trusts on pari passu charge on basis with Rupee Term Loan of Rs, 130000 Lakhs sanctioned by ICICI Bank Ltd. [at Sl.No.5 above].

(3) Term Loan of Rs, 75000 Lakhs [at Sl.No.33 above] 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 equity shares of Jaypee Infratech Ltd., held by Jaiprakash Associates Ltd. (iii) second pari passu charge on current assets of the Company.

(4) Term Loan of Rs, 50000 Lakhs sanctioned by Canara Bank (at Sl.No. 53 above) is further secured by way of pari passu Charge over 25.007 acres of Commercial Land situated at Jaypee Sports City near F1 Stadium, SDZ Sector-25, Gautam Budh Nagar, Uttar Pradesh.

(5) Term Loan of Rs, 120000 Lakhs sanctioned by ICICI Bank Ltd. (at Sl.No. 78 above) is further secured by way of First Charge over land admeasuring 9.8077 acres situated at Village Aurangpur, U.P., 148.3662 acres situated at Village Jaganpur, Afjalpur, UP, 151.006 acres situated at Village Jirkanpur, Tehsil Khair, Dist. Aligarh, U.P., all belonging to Jaypee Infratech Limited.

[c] Term Loans of Rs, 21300 Lakhs [Amount outstanding - Rs, 12780 Lakhs] sanctioned by Export Import Bank of India (at sl no 40 to 43 above) are secured by First Charge ranking pari passu with all the lenders save and except AKA Export Finance Bank [Amount Outstanding as at 31.03.2017 - Rs, 2661 Lakhs] 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 movable Fixed Assets pertaining to Real Estate Division, Fixed Assets specifically charged to State Government / State Financial Institutions for availing interest free loans etc., under various schemes framed by State Governments and any other assets specifically charged.

[d] Term Loans sanctioned by ICICI Bank - Rs, 130000 Lakhs, Bank of Maharastra - Rs, 30000 Lakhs, Yes Bank Ltd. -Rs, 20000 Lakhs, Canara Bank - Rs, 50000 Lakhs, aggregating to Rs, 230000 Lakhs [Amount outstanding Rs, 152046 Lakhs] (at sl no 5, 28, 36 & 48 above) 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 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. In addition to above

(1) Term loan of Rs, 130000 Lakhs sanctioned by ICICI Bank (at sl no 5 above) is further secured by way of (i) pledge of 18,93,16,882 equity shares of the Company held in various Trusts on first pari passu charge basis with Rupee Term Loan of Rs, 150000 Lakhs sanctioned by ICICI Bank Ltd., (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 (at sl no 48 above) is further secured by way of pari-passu 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. (at sl no 36 above) 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, 1000 Lakhs [Amount outstanding Rs, 169 Lakhs] (at sl no 45 above) & TATA Motors Finance Ltd. Rs, 342 Lakhs [Amount Outstanding Rs, 154 Lakhs](at sl no 63 & 64 above) 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 over certain Equipments of the Company.

[f] Term Loans sanctioned by State Bank of India Rs, 15000 Lakhs [Amount outstanding Rs, 9375 Lakhs] (at sl. No 26 above) 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 (i) First Charge on 2.56 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 over 3.78 acres of Commercial Land of Jaypee Infratech Ltd. situated at Sector - 128, Noida.

[g] Term Loans sanctioned by Standard Chartered Bank Rs, 40000 Lakhs, Rs, 45000 Lakhs and Rs, 62000 Lakhs [Amount outstanding Rs, 71283 Lakhs] (at sl. no 24,27 & 79 above) are secured against first charge ranking pari passu by way of equitable mortgage by deposit of title deed over the land admeasuring 355.84 acres at Jaypee Greens Golf Course, Greater Noida, Uttar Pradesh and collaterally secured by first charge ranking pari passu by way of equitable mortgage over land of Jaypee Infratech Ltd. admeasuring 39.5132 acres (residential 25.0040 acres and commercial 14.5092 acres) situated at village Sultanpur, Noida, Uttar Pradesh and Village Wazidpur, Noida, Uttar Pradesh. Out of the said 39.5132 acres of land, the Company has entered into an “Agreement to Sell with Jaypee Infratech Limited on 15.12.2009 for purchase of 14.5092 acres of commercial land and entire sale consideration has been paid to Jaypee Infratech Limited. Term Loan of Rs, 62000 Lakhs sanctioned by Standard Chartered Bank in two tranche of Rs, 53816 Lakhs and Rs, 8184 Lakhs is further secured by way of pledge of 9,41,25,000 Equity Share of Jaypee Cement Corporation Limited. Second tranche of Rs, 8184 Lakhs is further secured by way of pari passu charge alongwith loan mentioned in Sl.No.[j] below over land admeasuring 26.3158 hectares approx (part of 40 hectares in Jaypee Sports City Near F stadium, SEZ Sector 25, Gautam Budh Nagar).

[h] Term Loan sanctioned by HDFC Limited Rs, 45000 Lakhs [Amount outstanding Rs, 29301 Lakhs] (at sl. no 38 above ) 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. along with 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.

[i] Term Loan sanctioned by Standard Chartered Bank - Rs, 35000 Lakhs, United Bank of India - Rs, 15000 Lakhs, Allahabad Bank - Rs, 10000 Lakhs, Karur Vysya Bank - Rs, 5000 Lakhs & The South Indian Bank - Rs, 10000 Lakhs aggregating to Rs, 75000 Lakhs [Amount Outstanding - Rs, 56206 Lakhs] (at sl no 31,32,34,35,37 above) 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.

[j] Term Loan sanctioned by Yes Bank Ltd. - Rs, 52500 Lakhs [Amount Outstanding - Rs, 34125 Lakhs] (at sl no 30 above) is secured by way of exclusive charge over 18.02 acres of Commercial Land situated at Jaypee Sports City near F1 Stadium, SDZ Sector-25, Gautam Budh Nagar, Uttar Pradesh.

[k] Term loans of Rs, 100000 Lakhs sanctioned [Outstanding Rs, 43147 Lakhs] (at sl no 65 to 73 above), SBLCs Rs, 33295 Lakhs [Outstanding Rs, 33295 Lakhs] and Bank Guarantee Rs, 10000 Lakhs (Outstanding Rs, 10000 Lakhs) sanctioned by Banks and IFCI Limited are secured by first charge ranking pari-passu on all immovable and movable fixed assets pertaining to the core area sports infrastructure project [both present and future] and second pari-passu charge on all current assets including receivables pertaining to the aforesaid sports infrastructure project, subject to first charge of the working capital lenders (exclusive of SBLCs Rs, 33295 Lakhs).

[l] Term loan of Rs, 15,000 Lakhs [Outstanding Rs, 4412 Lakhs] sanctioned by ICICI Bank (at sl no 74 above) Limited is secured by mortgage of non core area land admeasuring 25 Acres at Sector - 25, along Yamuna Expressway, Gautam Buddh Nagar, second charge on all immovable & movable assets of core area sports infrastructure project.

[m] Term loan of Rs, 5000 Lakhs [Outstanding Rs, 3900 Lakhs] sanctioned by The Karur Vysya Bank Ltd. at Sl. No. 84 above is secured by First Charge on identified real estate inventory.

[n] Term loan of Rs, 15000 Lakhs [Outstanding Rs, 12000 Lakhs] sanctioned by State Bank of India at Sl. No. 92 above is secured by pari passu charge over Current Assets of the Company and pari passu Charge over land 37.763 hect. Situated in Chindwara, M.P., pari passu charge over assets related to Mandla (North) Coal Mine.

[o] Security includes security created / yet to be created.

[p] Outstanding amount of long term debts from Banks and Financial Institutions included in current maturities of long term debts and unpaid debentures [Refer Note No 16 - Other Current Financial Liabilities] as at 31.03.2017 includes principal overdues amounting to Rs, 217612 Lakhs and interest accrued and due on borrowings & interest on unpaid matured debentures amounting to Rs, 279495 Lakhs, both principal and interest overdues pertain to the F.Y. 2015-16 and F.Y. 2016-17.

[q] Loan outstanding as on Balance sheet date are after considering loans which are partly / fully paid before their respective due dates.

8 Loans from State Government:

[a] I nterest 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 above said Unit of the Company and partly against bank guarantee. The same is repayable on or before completion of 10 years from the day on which it is received. Period of repayment has commenced from F.Y. 2016-17.

[b] I nterest 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.

9 Details of Foreign Currency Convertible Bonds (Unsecured) at Note No.14[II]A are given as under :

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. As at 31.03.2017, 110400 Bonds aggregating to USD 110.40 Million are outstanding.

No conversion has taken place during F.Y. 2016-17 [Previous Year Nil]. Unless previously converted, the bonds are redeemable at maturity on 08.09.2017.

10 Unsecured Loan taken from subsidiary at Note No.14[II]E is taken from Himalyaputra Aviation Limited [Amount Outstanding Rs, 6500 Lakhs] repayable in 20 structured quarterly instalments from 30.12.17 to 30.09.22

11 The Company accepted Fixed Deposit till 31.03.2014 under Fixed Deposits Scheme from Public which are repayable in one year, two years and three years. In accordance with relevant provisions of Companies Act, 2013, the Company is repaying Fixed Deposits accepted from Public. HonRs,ble National Company Law Tribunal has allowed further time till 30th May 2017 to repay the Unpaid/ Unclaimed Matured Public Deposits

12 Deferred payment of Land is the amount payable to Yamuna Expressway Industrial Development Authority [YEIDA] by way of half yearly installments for the land admeasuring 1085.3327 hectares [Inclusive of 99.9320 hectares for Village Development and Abadi Extension] allotted to the Company. Lease Deeds in respect of 965.7390 hectares have been executed and lease Deeds for the balance 19.6617 hectares are yet to be executed, whereas land about 14.5993 hectares remains to be allotted. Current maturities of long term debts includes principal overdue Rs, 33185 Lakhs and interest accrued and due on borrowings includes interest over dues Rs, 26847 Lakhs payable to the Authority.

13 Rupee Term Loan from State Bank of India [at Sl. No 94 above] has been secured by way of Corporate Guarantee by Jaiprakash Power Ventures Ltd. [JPVL], a subsidiary Company.

[B] CURRENT BORROWINGS

14.12 Secured Term Loans from Banks & Others:

[a] Short Term Loan of Rs, 100000 Lakhs [Amount Outstanding Rs, 100000 Lakhs] sanctioned by State Bank of India is secured by way of (i) exclusive charge over 57.13 acres of Land of the Company situated at Sector-25, SDZ, Jaypee Sports City on Yamuna Expressway, Village - Aurangpur & Gunpura, Tehsil-Sadar, Distt. - Gautam Budh Nagar, Uttar Pradesh (ii) Charge/Lien to the extent of 1.50 times of the Loan Amount on an Escrow Account with State Bank of India (iii) Subservient Charge on the Fixed Assets of the Company except assets specifically charged to Lenders (iii) STL further secured by way of Registered mortgaged over 90 acres of land situated at Agra of Jaypee Infratech Ltd.

[b] Short Term Loan of Rs, 54000 Lakhs [Amount Outstanding Rs, 54000 Lakhs] sanctioned by IndusInd Bank Ltd. is secured by way of (1) Subservient charge on entire movable fixed and current assets of the Company (excluding charge on assets of Bela & Sidhi Plants) (2) Cross collateralization of Jaypee Greens property i.e. 1.85329 acres situated in Block Surajpur Kasna Road at Sector No.19 and 25 in Greater Noida Industrial Development Area, Distt. Gautam Budh Nagar, Uttar Pradesh and 12,00,00,000 equity shares of Jaypee Infratech Limited (JIL) held by the Company as collateral for IBLRs,s facility in Jaypee Fertilizer and Industries Limited (JFIL). (3) commercial land of non- core area admeasuring 23.80 acres situated at Sector -25, SDZ, Jaypee Sports City, Yamuna Expressway (4) current assets of Sports Division and (5) Charge on the escrow account.

[c] Short Term Loan of Rs, 4250 Lakhs [Amount Outstanding Rs, 3000 Lakhs] sanctioned by SREI Equipment Finance Limited is secured by way of Hypothecation on certain equipment of the Company.

14 Outstanding amount of long term debts from Banks and Financial Institutions included in current maturities of long term debts and unpaid debentures [Refer Note No 16 - Other Current Financial Liabilities] as at 31.03.2017 includes principal over dues amounting to Rs, 157553 Lakhs and interest accrued and due on borrowings & interest on unpaid matured debentures amounting to Rs, 24858 Lakhs, both principal and interest over dues.

15 Working Capital Loans:

[a] 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 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 IDBI Bank Ltd. have converted their Non Fund Based Limits [within Consortium] into Fund Based Limits to the extent of Rs, 35000 Lakhs [Amount Outstanding Rs, 35000 Lakhs].

[b] Working Capital facility includes Pre Shipment Credit by Standard Chartered Bank which is secured by way of first charge ranking pari passu by way of equitable mortgage over the land admeasuring 355.84 acres at Jaypee Greens Golf Course, Greater Noida, Uttar Pradesh and collaterally secured by first charge ranking pari passu by way of equitable mortgage over land of Jaypee Infratech Ltd. admeasuring 39.5132 acres (residential land - 25.0040 acres and commercial land - 14.5092 acres) situated at village Sultanpur, Noida, Uttar Pradesh and Village Wazidpur, Noida, Uttar Pradesh. Out of the said 39.5132 acres of land, the Company has entered into an “Agreement to Sell with Jaypee Infratech Limited on 15.12.2009 for purchase of 14.5092 acres of commercial land and entire sale consideration has been paid to Jaypee Infratech Limited) along with Long Term Loans sanctioned by Standard Chartered Bank Rs, 40000 Lakhs, Rs, 45000 Lakhs and Rs, 62000 Lakhs [Amount outstanding Rs, 71283 Lakhs].

[c] Working Capital facility also include Buyer''s Credit etc., to the extent of Rs, 2475 Lakhs availed from Working Capital consortium member Banks out of limit sanctioned to the Company and other Banks.

[d] Working Capital Demand Loan of Rs, 20000 Lakhs (Outstanding Rs, 16127 Lakhs) sanctioned by Axis Bank Ltd. is secured by subservient and subsequent charge on Current Assets of the Company.

16 Bill Discounting of Rs, 17500 Lakhs [Outstanding Rs, 3603 Lakhs] from SIDBI is secured by way of residual charge on current assets of the Company.

17 Short Term Unsecured Loan of Rs, 50000 Lakhs [Amount Outstanding Rs, 50000 Lakhs] sanctioned by Axis Bank Limited is secured by way of Corporate Guarantee of UltraTech Cement Ltd.

Short Term Inter Corporate Deposit (Unsecured) of Rs, 2000 Lakhs is taken from UltraTech Cement Limited

18 Liabilities directly associated with assets in disposal group classified as held for sale do not include long term borrowings that will get transferred as part of the Scheme of Arrangement.

[b] Securities

[i] 1,45,43,29,855 Equity Shares of Rs, 10/- each fully paid-up [Previous Year 1,37,59,88,510 Equity Shares] of Jaiprakash Power Ventures Limited [JPVL] are pledged as collateral security and has given Non disposal undertaking of 10,21,88,566 Equity Shares of Rs, 10/- each [Previous Year 10,21,88,566 Equity Shares] for the financial assistance granted by Lenders to JPVL for specific projects.

[ii] The Company has pledged 70,83,56,087 Equity Shares of Rs, 10/- each fully paid-up [Previous Year 70,83,56,087 Equity Shares] of Jaypee Infratech Limited (JIL) with IDBI Trusteeship Services Limited (ITSL) (Trustee) held by the Company in favour of ITSL as collateral security for the financial assistance to JIL. The Company has also given Promoter support undertaking to IDBI led consortium loan. Outstanding amount as at 31.03.2017 is Rs, 8,10,274 Lakhs [Previous Year Rs, 8,10,710 Lakhs].

[iii] 3,54,27,000 Equity Shares of Rs, 10/- each fully paid-up [Previous Year 3,54,27,000 Equity Shares] of Himalyan Expressway Limited [HEL] held by the Company are pledged as collateral security for financial assistance granted by the Lenders to HEL. The Company has also given support undertaking to ICICI Bank. Outstanding amount as at 31.03.2017 is Rs, 23668 Lakhs [Previous Year Rs, 24425 Lakhs].

[iv] 1,83,67,347 Equity Shares of Rs, 10/- each fully paid-up Previous Year 1,83,67,347 Equity Shares] of Madhya Pradesh Jaypee Minerals Limited [MPJPML] pledged as collateral security for financial assistance granted by the lenders to MPJPML. The loans have been paid by MPJPML, security yet to be released.

[v] The Company has executed non disposal undertaking for 12,00,00,000 Equity Shares [Previous Year 12,00,00,000 Equity Shares] of Jaypee Infratech Limited held by the Company in favour of lenders as collateral security for the financial assistance to Jaypee Fertilizers & Industries Limited. Further, the Company has given first pari passu charge on 1.85329 acres Land [B-Type Building] at Jaypee Greens, Greater Noida alongwith Corporate Guarantee for financial assistance to Jaypee Fertilizers & Industries Limited.

[vi] The Company has given Letter of Comfort to Banks for financial assistance taken by Jaiprakash Power Ventures Limited. Outstanding amount as at 31.03.2017 is Rs, 98705 Lakhs [Previous Year Rs, 164500 Lakhs].

[viii] The Company has given shortfall undertaking to Banks & Financial Institutions for Term Loan & Non Fund based Limit provided to Kanpur Fertilizers & Cement Limited. Outstanding amount of loan as at 31.03.2017 is Rs, 31543 Lakhs [Previous Year Rs, 42770 Lakhs] and outstanding amount of Working Capital and Non Fund based limit utilized as at 31.03.2017 is Rs, 56448 Lakhs [Previous Year Rs, 62394 Lakhs].

[ix] The Company has given shortfall undertaking to Banks for providing financial assistance and Non Fund based limit to Jaypee Cement Corporation Limited. Outstanding amount of loan as at 31.03.2017 is Rs, 188867 Lakhs [Previous Year Rs, 10000 Lakhs]. Outstanding amount of Working Capital as at 31.03.2017 is Rs, 2010 Lakhs and Outstanding amount of Non Fund based limit as at 31.03.2017 is Rs, 7268 Lakhs.

The above information is based on information available with the Management

NOTE No.9 The following were classified as Disposal Group held for sale:

[i] The Company has approved the Definitive agreement with UltraTech Cement Limited [UTCL] for transfer of part of its cement business [including that of its 100% subsidiary Jaypee Cement Corporation Ltd. (JCCL)], comprising identified Cement Plants with an aggregate capacity of 17.20 MTPA [including Power Plant at Siddhi] spread over the states of Uttar Pradesh, Madhya Pradesh, Himachal Pradesh, Uttarakhand and Andhra Pradesh and 4 MTPA Bara Grinding Unit [under commissioning] a unit of Prayagraj Power Generation Company Limited, an associate Company at a total Enterprise Value of Rs, 16189 Crores. The Scheme of Arrangement has been sanctioned by National Company Law Tribunal vide its order dated 2nd March 2017. The scheme has already been approved by Competition Commission of India [CCI], Stock Exchanges, Shareholders, Secured Creditors and Unsecured Creditors of the Company, JCCL & UTCL in their respective meetings. The Scheme shall be made effective upon receipt of the remaining approvals as mentioned in the Scheme.

[ii] During the FY 2015-16 the company transferred its Grinding Unit in Panipat, Haryana and 49 MW capacity wind power plants.

NOTE No.10

Related Parties disclosures, as required in terms of “ Indian Accounting Standard [Ind AS] 24 are given below: Relationships

[a] Subsidiary Companies [including their subsidiaries]:

1 Jaypee Infratech Limited [JIL]

2 Himalyan Expressway Limited

3 Jaypee Ganga Infrastructure Corporation Limited

4 Jaypee Agra Vikas Limited

5 Jaypee Cement Corporation Limited [JCCL]

6 Jaypee Fertilizers & Industries Limited

7 Himalyaputra Aviation Limited

8 Jaypee Assam Cement Limited

9 Jaypee Health Care Limited [subsidiary of JIL]

10 Jaypee Infrastructure Development Ltd [formerly known as Jaypee Cement Cricket (India) Ltd.]

11 Jaypee Cement Hockey (India) Limited

12 Jaiprakash Agri Initiatives Company Limited [Subsidiary of JCCL]

13 Himachal Baspa Power Company Limited [Subsidiary till 07.09.2015]

14 Yamuna Expressway Tolling Limited [Subsidiary w.e.f 25.03.2017]

15 Bhilai Jaypee Cement Limited

16 Gujarat Jaypee Cement & Infrastructure Limited

17 Jaiprakash Power Ventures Limited [JPVL]

18 Sangam Power Generation Company Limited [Subsidiary of JPVL]

19 Prayagraj Power Generation Company Limited [Subsidiary of JPVL]

20 Jaypee Meghalaya Power Limited [Subsidiary of JPVL]

21 Bina Power Supply Limited [Subsidiary of JPVL]

22 Jaypee Powergrid Limited [Subsidiary of JPVL]

23 Jaypee Arunachal Power Limited [Subsidiary of JPVL]

Companies mentioned at Sl.No.17 to 23 ceased to be Subsidiary of the Company w.e.f. 18.02.2017.

[b] Associate Companies:

1 Jaiprakash Power Ventures Limited [JPVL]

2 Jaypee Powergrid Limited [Subsidiary of JPVL]

3 Jaypee Arunachal Power Limited [Subsidiary of JPVL]

4 Sangam Power Generation Company Limited [Subsidiary of JPVL]

5 Prayagraj Power Generation Company Limited [Subsidiary of JPVL]

6 Jaypee Meghalaya Power Limited [Subsidiary of JPVL]

7 Bina Power Supply Limited [Subsidiary of JPVL]

8 Jaypee Infra Ventures [A Private Company with unlimited liability]

9 Jaypee Development Corporation Limited

10 JIL Information Technology Limited

11 Gaur & Nagi Limited

12 Indesign Enterprises Private Limited

13 Sonebhadra Minerals Private Limited

14 RPJ Minerals Private Limited

15 Tiger Hills Holiday Resort Private Limited

16 Sarveshwari Stone Products Private Limited

17 Rock Solid Cement Limited

18 Jaypee International Logistics Company Private Limited

19 Jaypee Hotels Limited

20 Yamuna Expressway Tolling Private Limited [formerly known as Jaypee Mining Venture Pvt. Ltd.] [associate till 24.03.2017]

21 Ceekay Estates Private Limited

22 Jaiprakash Exports Private Limited

23 Bhumi Estate Developers Private Limited

24 Jaypee Technical Consultants Private Limited

25 Jaypee Uttar Bharat Vikas Private Limited

26 Kanpur Fertilizers & Cement Limited

27 Madhya Pradesh Jaypee Minerals Limited

28 MP Jaypee Coal Limited

29 MP Jaypee Coal Fields Limited

30 Andhra Cements Limited

31 Jaypee Jan Sewa Sansthan [''Not for Profit'' Private Limited Company]

32 Think Different Enterprises Private Limited

33 JC World Hospitality Pvt. Ltd.

34 Ibonshourne Limited [w.e.f. 11.01.2016]

35 JC Wealth & Investment Private Limited

36 CK World & Hospitality Private Limited

37 Librans Venture Private Limited

38 Librans Real Estate Private Limited

39 Samvridhi Advisors LLP

40 Jaiprakash Kashmir Energy Limited

41 Anvi Hotels Private Limited

42 PAC Pharma Private Limited

43 Kram Infracon Private Limited

Companies mentioned at Sl.No.1 to 7 became an associate company in place of subsidiary w.e.f. 18.02.2017.

[c] Key Management Personnel, where transactions have taken place:

1 Shri Manoj Gaur, Executive Chairman & C.E.O.

2 Shri Sunil Kumar Sharma, Executive Vice Chairman

3 Shri Sarat Kumar Jain, Vice Chairman [till 06.06.2016]

4 Shri Sunny Gaur, Managing Director [Cement]

5 Shri Pankaj Gaur, Joint Managing Director [Construction]

6 Shri Ranvijay Singh, Whole time Director

7 Shri Rahul Kumar, Whole time Director & C.F.O.

8 Shri Shiva Dixit, Whole time Director [till 20.07.2015]

9 Shri Naveen Kumar Singh [relative of key management personnel]

Note: Related party relationships are as identified by the Company and relied upon by the Auditors.

Transactions carried out with related parties referred to above in ordinary course of business

[c] The Company has determined following reporting segment based on the information reviewed by the Company''s Chief Operating Decision Maker [CODM]:

[i] Construction Civil Engineering Construction/EPC Contracts/Expressway

[ii] Cement Manufacture and Sale of Cement and Clinker

[iii] Hotel/Hospitality Hotels, Golf Course, Resorts & Spa

[iv] Sports Events Sports related Events

[v] Real Estate Real Estate Development

[vi] Power Generation and Sale of Energy

[vii] Investments Investments in Subsidiaries and Joint Ventures for Cement, Power, Expressway, Sports etc.

[viii] Others Includes Coal Extraction, Waste Treatment Plant, Heavy Engineering Works,

Hitech Castings, Man Power Supply etc.

The above business segments have been identified considering - [i] the nature of product and services, [ii] the differing raises and returns, [iii] the internal organization and management structure and [iv] the internal financial reporting system.

Non-Current Assets for this purpose consists of property, plant and equipment, Capital Work in Progress and intangible assets including under development.

Revenue from Major Customers

The Company is not reliant on revenue from transaction of the any single external customer and does not receive 10% or more of the revenue from transaction with any single external customers.

[d] Segment Revenues, Operating Results, Assets and Liabilities include the amounts identifiable to each segment and amounts allocated on a reasonable basis.

[e] Segment Assets exclude Deferred Tax Asset. Segment Liabilities exclude Deferred Tax Liability.

Level 3:

If one or more of the significant inputs is not based on observable market data, the instrument is included in level

3. This is the case of unlisted equity shares and preference shares. The fair value of preference shares is determined using discounted cash flow analysis.

The Company''s policy is to recognize transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

There were no significant changes in the classification and no significant movements between the fair value hierarchy classifications of assets and liabilities during FY 2016-17.

(b) Valuation technique used to determine fair value (Level I)

Specific valuation technique used to value financial instruments include:

- the use of quoted market price or NAV declared

- the fair value of the remaining financial instruments is determined using the discounted cash flow analysis.

(c) Fair value measurements using significant unobservable inputs (Level 3)

The following table presents the changes in level 3 items for the period ended 31st March 2017 and 31st March 2016

(d) Fair value of financial assets and liabilities measured at amortized cost

The carrying amounts of trade receivables, trade payables, capital creditors and cash and cash equivalents, bank balances are considered to be the same as their fair values.

The fair value for loans, security deposits are calculated based on cash flows discounted using weighted average cost of capital.

The fair value of noncurrent borrowings are based on discounted cash flows using a weighted average cost of capital. They are classified as level 3 fair value in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

Note No.43

Financial Risk Management

The Company''s activities expose it to market risk, liquidity risk and credit risk. The Company''s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.

(a) Credit Risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The Company''s exposure to credit risk is influenced mainly by the individual characteristic of each customer and the concentration of risk from the top few customers.

(i) Credit risk management

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. Trade receivables, Loans and Other receivables are typically unsecured. Credit risk has always been managed by the Company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. On account of the adoption of Ind AS 109, the Company uses ECL model to assess the impairment loss or gain. The Company uses a provision matrix to compute the ECL allowance for trade receivables and unbilled revenues. The provision matrix takes into account available external and internal credit risk factors such as credit ratings from credit rating agencies and the Company''s historical experience for customers.

Credit risk on cash and cash equivalents and bank balances is limited as the Company generally invest in deposits with bank. Investments primarily include investments in liquid mutual fund units, quoted and unquoted equity shares, preference shares and quoted bonds.

(b) Liquidity Risk

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due.

(i) Liquidity risk management

The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, bank loans, debentures, bonds and finance lease. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding and debt maturing within 12 months can be rolled over with existing lenders.

The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet operational needs. Any short term surplus cash generated, over and above the amount required for working capital management and other operational requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested in interest bearing term deposits and other highly marketable debt investments with appropriate maturities to optimize the cash returns on investments while ensuring sufficient liquidity to meet its liabilities.

(c) Market Risk

The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk.

(i) Foreign Currency Risk

The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The company is exposed to foreign exchange risk arising from foreign currency borrowings [ECB]. Foreign currency risk arises from future commercial transactions and recognized assets and liabilities denominated in a currency that is not the Company''s functional currency (INR). The risk is managed through a forecast of highly probable foreign currency cash flows.

Foreign Currency Risk Management

The Company''s risk management committee is responsible to frame, implement and monitor the risk management plant of the Company. The committee carry out risk assessment with regard to foreign exchange variances and suggests risk minimization procedures and implement the same.

Interest Rate Risk Management

The Company''s risk management committee ensures all the current and future material risk exposures are identified, assessed, quantified, appropriately mitigated, minimized, managed and critical risks when impact the achievement of the Company''s objective or threatens its existence are periodically reviewed.

(iii) Price Risk

The price risk for the company is risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices.

Price Risk Management

To manage its price risk arising from investments, the Company diversifies its portfolios. Diversification of the portfolio is done in accordance with the limits set by the Company.

Price risk exposure

The Company''s exposure to price risk arises from investments held by the Company and classified in the balance sheet as fair value through profit or loss.

Note No.44

Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders. The objective of the company''s capital management is to safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits other stakeholders and maintain an optimal capital structure to reduce the cost of capital. The company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The company monitors capital structure using gearing ratio, which is net debt divided by total equity plus net debt. The company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents.

(a) Provident Fund - Defined Contribution Plan

Employer''s Contribution to Provident and Pension Fund benefits Rs, 2720 Lakhs [31st March 2016 Rs, 2885 Lakhs] is recognized as an expense for the year

(b) Gratuity and Leave encashment - Defined Benefit Plans - Provision made as per actuarial valuation. The Company has a Trust namely Jaiprakash Associates Employees Gratuity Fund Trust to manage funds towards Gratuity Liability of the Company. SBI Life Insurance Company Limited and ICICI Prudential Life Insurance Company Limited have been appointed for management of the Trust Fund for the benefit of the employees.

NOTE No.48

The Free-hold Land [Agricultural] purchased by the Company for Rs, 3 Lakhs measuring 7 Bighas at Rangpuri, New Delhi had been notified for acquisition U/s 4 & 6 of the Land Acquisition Act. The Company''s claim for compensation is pending for settlement.

NOTE No.49

First-time adoption of Ind AS

These financial statements, for the year ended 31st March 2017, are the first financial statements the company has prepared under Ind AS. For periods up to and including the year ended 31st March 2016, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31 March 2017, together with the comparative period data as at and for the year ended 31 March 2016, as described in the significant accounting policies. In preparing these financial statements, the Company''s opening balance sheet was prepared as at 1st April 2015, the Company''s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1st April 2015 and the financial statements as at and for the year ended 31st March 2016.

The figures for the previous period have been restated, regrouped and reclassified wherever required to comply with the requirement of Ind AS and Schedule III.

[a] Mandatory Exceptions from retrospective application

The company has applied the following exceptions to the retrospective application of Ind AS as mandatorily required under Ind AS 101.

[i] The estimates at 1st April 2015 and at 31st March 2016 are consistent with those made for the same dates in accordance with Indian GAAP. The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions at 1st April 2015, the date of transition to Ind AS and as at 31st March 2016.

[ii] Classification and measurement of financial assets

The classification of financial assets is made on the basis of the facts and circumstances that existed on the date of transition to Ind AS.

[iii] Government loans

The Company has elected to apply the requirement of Ind AS 109 and Ind AS 20 retrospectively as all the required information needed had been obtained at the time of initially accounting of the loan.

[b] Optional Exemptions from retrospective application

[i] Business Combination

The Company has applied the exemption as provided in Ind AS 101 and not applied Ind AS 103 “Business Combinations for acquisitions of subsidiaries, or of interest in associates and joint venture and transactions which are considered business combinations for Ind AS, that occurred prior to the date of transition i.e. 1st April 2015. The carrying amounts of assets & liabilities in accordance with previous GAAP are considered as their deemed cost.

[ii] Deemed Cost

The Company has elected to measure all of its property, plant and equipment and intangible assets at the previous GAAP carrying value as its deemed cost on the date of transition to Ind AS.

[iii] Long Term Foreign Currency Monetary Items

The Company has elected to continue the policy of capitalizing exchange differences arising from translation of long term foreign currency monetary items.

[iv] Investments in subsidiaries, joint ventures and associates

The Company has elected to measure its investments in subsidiaries, joint ventures and associates at previous GAAP carrying value as its deemed cost on the date of transition to Ind AS.

Government Grant

Under Indian GAAP, interest free loans and VAT deferment loans from Government [Govt.] were disclosed as liability. Under Ind AS, such Govt. loans are required to be fair valued and Govt. Grant to be recognized.

Accordingly, Interest free loan and VAT deferment loans have been recognized at fair value. The difference between carrying value and fair value has been recognized as income from Government Grant over the period in which the company recognizes as expenses the related costs for which the grants are intended to compensate.

Compound financial instruments

The Company has issued Foreign Currency Convertible Bonds [FCCBs]. The FCCBs are convertible into equity shares at predetermined price at the option of bond holder. Under Indian GAAP, the FCCBs were recognized as liability. Under Ind AS, FCCBs are separated into liability and equity components based on the terms of the contract. Interest on liability component is recognized using the effective interest method.

II Defined benefit liabilities

Both under Indian GAAP and Ind AS, the Company recognized costs related to its post-employment defined benefit plan on an actuarial basis. Under Indian GAAP, the entire cost, including actuarial gains and losses, were charged to profit & loss. Under Ind AS, remeasurements [comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets excluding amounts included in net interest on the net defined benefit liability] are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through Other Comprehensive Income (OCI).

III Fair Valuation of Investments

Under Indian GAAP, the Company accounted for long term investments in unquoted and quoted equity shares as investment measured at cost less provision for diminution other than temporary in the value of investments.

Under Ind AS, the Group has designated investments (other than investment in subsidiaries, associates and joint ventures) as Fair Value through Profit & Loss (FVTPL) investments. Ind AS requires FVTPL investments to be measured at fair value. At the date of transition to Ind AS, difference between the instruments fair value and Indian GAAP carrying amount has been recognized in retained earnings and subsequently in the profit & loss for the year ended 31st March 2016.

Under Indian GAAP, the Company accounted for long term investments in preference shares of Group companies as investment measured at cost less provision for diminution other than temporary in the value of investments. Under Ind AS, the Company has designated those investments as FVTPL debt investments. Ind AS requires such debt instruments to be measured at fair value. At the date of transition to Ind AS, difference between the instruments fair value and the Indian GAAP carrying amount has been recognized in retained earnings.

Financial Guarantees

Under Indian GAAP, financial guarantees given for the assistances to group companies were disclosed as contingent liability. Under Ind AS, such financial guarantees are required to be recognized at fair value. Accordingly, the Company has fair valued these financial guarantees and recognized as deemed investment in subsidiaries, joint venture and associates. Corresponding liability has been created and recognized as Income over the period of guarantee as income from corporate guarantee.

IV Trade Receivables

Under Indian GAAP, the Company has created provision for impairment of receivables consists only in respect of specific amount for incurred losses. Under Ind AS, impairment allowance has been determined based on Expected Loss model (ECL).

Provisions

Under Indian GAAP, the Company has accounted for provisions, including long-term provision, at the undiscounted amount. In contrast, Ind AS 37 requires that where the effect of time value of money is material, the amount of provision should be the present value of the expenditures expected to be required to settle the obligation. The discount rate(s) should not reflect risks for which future cash flow estimates have been adjusted. Ind AS 37 also provides that where discounting is used, the carrying amount of a provision increases in each period to reflect the passage of time. This increase is recognized as borrowing cost.

Security Deposits

Under Indian GAAP, interest free security deposits that are refundable in cash on completion of the lease term are recorded at their transaction value. Under Ind AS, all financial assets are required to be recognized at fair value. Accordingly, the Company has fair valued these security deposits. Difference between the fair value and transaction value of the security deposits have been recognized as prepaid rent.

Property, Plant and Equipments

Lease arrangements were assessed and recognized as finance lease asset with corresponding finance lease obligation at the date of transition to Ind AS.

Prior Period Income and Expenses

Under Indian GAAP, prior period income / expenses were recognized in the current period as a result of errors or omissions in the preparation of financial statements of prior period. Under Ind AS, prior period income/ expenses shall be recognized in the relevant previous years and financial statements shall be restated for this purpose.

Sale of goods

Under Indian GAAP, sale of goods was presented as net of excise duty. However, under Ind AS, sale of goods includes excise duty. Excise duty on sale of goods is separately presented on the face of statement of profit and loss. Discount on sales has been adjusted from sales under IND AS.

V Deferred tax

Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP.

In addition, the various transitional adjustments lead to temporary differences. According to the accounting policies, the Company has to account for such differences. Deferred tax adjustments are recognized in correlation to the underlying transaction either in retained earnings or a separate component of equity.

NOTE No.11

Jaiprakash Associates Limited (JAL) had awarded orders on Tecpro systems Limited (TSL) for various projects (Cement plant and Captive Power Plants) for supply, erection (only Churk Power Plant), Supervision of erection & commissioning, performance and testing of the Coal Handling Plants at Sidhi, chunar, Rewa, Churk, JP Super. However, TSL did not complete the entire work as per the terms & conditions of the contracts, and there were delays in design and engineering, Supply of Plant and Equipments for all these plants.

Due to these delays, an amount of Rs, 12,03,33,844/- is recoverable from TSL on account of liquidated damages and other miscellaneous recoveries. The total credit available in respective of books is Rs, 931 Lakhs and therefore a net amount of Rs,272 Lakhs is recoverable from TSL.

NOTE No.12

The previous year figures have been regrouped/recast/rearranged wherever considered necessary to confirm to the current year''s classification.

NOTE No.13

All the figures have been rounded off to the nearest lakh Rs,.

Source : Dion Global Solutions Limited
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