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Jaiprakash Associates
BSE: 532532|NSE: JPASSOCIAT|ISIN: INE455F01025|SECTOR: Infrastructure - General
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« Mar 13
Notes to Accounts Year End : Mar '14
NOTE No.1                             As at         As at
 
 Contingent Liability not provided 
 for in respect of:                    31.03.2014     31.03.2013 
                                       Rs. LAKHS         Rs. LAKHS
 
 [a] Claims against the Company / 
 Disputed Liability [excluding Income
 Tax] not                                230,699         200,783 
 acknowledged as debts
 
 The above includes VAT/Sales Tax 
 matter under Appeal to the extent 
 of Rs. 23200 Lakhs [Previous Year 
 Rs. 23488 Lakhs], Excise Tax matter 
 under Appeal to the extent of 
 Rs. 11259 Lakhs [Previous Year 
 Rs. 6658 Lakhs] and Entry Tax 
 matter under Appeal to the extent
 of Rs. 40884 Lakhs [Previous
 Year Rs. 36003 Lakhs]
 
 Amount deposited under Protest           69,745          58,422
 
 Bank Guarantee deposited under 
 Protest [included in (b) below]          20,738          19,181
 
 [b]  Outstanding amount of Bank 
 Guarantees                              169,342         139,960
 Margin Money deposited against the above    495             428
 Bank Guarantee includes Bank Guarantee 
 for Rs. 30000 Lakhs [Previous Year
 Rs. 31615 Lakhs] to Subsidiaries and also 
 includes Guarantee amounting to Rs.
 25759 Lakhs [Previous Year Rs. 3278 Lakhs] 
 given to Banks and Others on behalf of
 Subsidiaries/Joint Ventures/Associates.
 
 [c] Income Tax Matters
 
 [i] The Income Tax Assessments of the company have been completed upto
 Assessment Year 2011-12. Tax value for matters under appeal is Rs. 6812
 Lakhs for A.Y. 2011-12. Based on the decision of the Appellate
 authorities and the interpretation of relevant tax provisions, the
 Company has been legally advised that the additions made in the
 assessments are likely to be deleted or substantially reduced. As at
 31.03.2014 there is no outstanding tax demand against the Company.
 
 [ii] The Company has received a demand of Rs. 131122 Lakhs towards TDS
 assessment for the A.Y. 2006-07 to A.Y. 2013-14. The Company has filed
 an appeal with Commissioner of Income Tax [Appeals] against the above
 said demand. The Company has also filed an application U/s 154 of the
 Income Tax Act for rectifying the mistakes apparent from records in the
 demand order and the same will substantially reduce the demand. Based
 on the advice of the Counsels and the interpretation of relevant tax
 provisions, the Company believes it has strong grounds for success of
 the appeal. Hence no provision is considered in the Financial
 statements.
 
 [d] The Competition Commission of India (CCI) passed an order on 20th
 June, 2012 imposing penalty on 11 cement manufacturers including the
 Company, allegeing contravention of the provisions of the Competition
 Act, 2002, and imposed a penalty of Rs. 132360 Lakhs on the Company.
 
 The Company has filed an appeal against the said order before the
 Competition Appellate Tribunal. The matter is currently pending before
 the Competition Appellate Tribunal. However, the Competition Appellate
 Tribunal has, by its orders dated September 13, 2012 and October 11,
 2012, ordered that no coercive steps be taken against the Company for
 recovery of the penalty imposed. As per directions of the Competition
 Appellate Tribunal an amount of Rs. 13236 lakhs has been deposited which
 will remain with them and not to be disbursed during the pendency of
 the appeal. Based on the advice of the Counsels, as well as its own
 assessment, the Company believes it has strong grounds for success of
 the appeal. Hence no provision is considered in the Financial
 statements.
 
 [e] The Hon''ble High Court of Himachal Pradesh, vide order dated
 04.05.2012, imposed damages of Rs. 10000 Lakhs holding certain
 contraventions of the Water (Prevention & Control of Pollution ) Act,
 1974 , Air (Prevention & Control of Pollution) Act, 1981 & Environment
 Impact Assessment Notification in respect of the Company''s Cement plant
 at Bagheri, Himachal Pradesh. The Company has filed Special Leave
 Petition before the Hon''ble Supreme Court against the said Order which
 is pending for disposal. As per directions of the Hon''ble Supreme Court
 an amount of Rs. 5000 lakhs has been deposited with the State Government
 which will remain with them and not to be disbursed during the pendency
 of the appeal. Based on advice of the Counsels no provision is
 considered in the Financial Statements.
 
 NOTE No.2 Commitments:
 
 [c] The Company has imported Capital Goods under Export Promotion
 Capital Goods Scheme [EPCG], where-under the Company is required to
 fulfill export obligation/deemed exports amounting to Rs. 24100 Lakhs
 [Previous Year Rs. 24100 Lakhs] till 31.03.2015. The Liability amounting
 to Rs. 4780 Lakhs [Previous Year Rs. 4780 Lakhs] on account of custom duty
 may arise alongwith interest @15% p.a., in the event of non-fulfillment
 of export obligation.
 
 [b] Securities:
 
 [i] 1,65,67,21,000 Equity Shares of Rs. 10/- each fully paid-up [Previous
 Year 1,29,45,09,231 Equity Shares] of Jaiprakash Power Ventures Limited
 [JPVL] are pledged as collateral security and has given Non disposal
 undertaking of 11,79,20,000 Equity Shares of Rs. 10/- each 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) of JIL held by the Company in favour of ITSL as collateral
 security for the financial assistance to JIL.
 
 [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.
 
 [iv] 15,20,00,000 Equity Shares of Rs. 10/- each fully paid-up [Previous
 Year 15,20,00,000 Equity Shares] of Jaypee Sports International Limited
 [JPSI] pledged as collateral security for financial assistance granted
 to JPSI on issuance of Compulsory Convertible Debentures.
 
 [v] 1,83,67,347 Equity Shares of Rs. 10/- each fully paid-up [Previous
 Year 64,28,571 Equity Shares] of Madhya Pradesh Jaypee Minerals Limited
 [MPJPML] pledged as collateral security for financial assistance
 granted by the lenders to MPJPML.
 
 [vi] 30,00,000 Equity Shares of Rs. 10/- each fully paid-up of MP Jaypee
 Coal Limited [MPJCL] pledged as collateral security for financial
 assistance granted by the lenders to MPJCL.
 
 [vii] 8,21,40,000 Equity Shares of Rs. 10/- each fully paid-up [Previous
 Year 8,21,40,000 Equity Shares] of Jaypee Agra Vikas Limited [JAVL]
 pledged as collateral security for financial assistance granted by the
 lenders to JAVL.
 
 [viii] The Company has executed non disposal undertaking for
 12,00,00,000 Equity Shares [Previous Year 7,00,00,000 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 for financial assistance to Jaypee Fertilizers &
 Industries Limited and Jaypee Sports International Limited amounting to
 Rs. 210 crores and Rs. 250 crores respectively by IndusInd Bank.
 
 [ix] The Company has given Letter of Comfort to ICICI Bank for Non
 Convertible Debentures amounting Rs. 73685 Lakhs [Previous Year Rs. 98259
 Lakhs] issued by Jaiprakash Power Ventures Limited.
 
 [x] The Company has given Letter of Comfort for Non Convertible
 Debentures amounting Rs. 50000 Lakhs [Previous Year Rs. 50000 Lakhs] issued
 by Jaypee Infratech Limited.
 
 [xi] The Company has given Letter of Comfort to SREI Infrastructure
 Finance Limited for Rs. 1938 Lakhs [Previous Year Rs. 2371 Lakhs] for
 providing financial assistance to Himalyaputra Aviation Limited
 
 [xii] The Company has given shortfall undertaking to Banks amounting Rs.
 24000 Lakhs [Previous Year Rs. 34000 Lakhs] for providing financial
 assistance to Bhilai Jaypee Cement Limited.
 
 [xiii] The Company has given shortfall undertaking to ICICI Bank and
 State Bank of India for Term Loan amounting Rs. 33125 Lakhs [Previous
 Year Rs. 30000 Lakhs] & Non Fund based Limit utilized for Rs. 77000 Lakhs
 [Previous Year Rs. 10000 Lakhs] provided by ICICI Bank to Kanpur
 Fertilizers & Cement Limited.
 
 NOTE No.3
 
 The Company has pledged 20,35,000 Equity Shares [Previous Year
 20,35,000 Equity Shares] held in Delhi Gurgaon Super Connectivity
 Limited to HUDCO as Security for Loans granted by Lenders to Delhi
 Gurgaon Super Connectivity Limited.
 
 NOTE No.4
 
 Letter of Credit facility taken from Axis Bank Limited - Rs. 10000 Lakhs
 [Previous Year Rs. 10000 Lakhs] is secured by way of Subservient charge
 on the Current Assets of the company.
 
 NOTE No.5
 
 In the opinion of Board of Directors, Assets other than Fixed Assets
 and Non-Current Investments have a value on realisation in the ordinary
 course of business at least equal to the amount at which they are
 stated in the Balance Sheet.
 
 NOTE No.6
 
 Other Payables shown under the head Other Current Liabilities include
 Book Overdraft of Rs. 112 Lakhs [Previous Year Rs. 1220 Lakhs].
 
 NOTE No.7
 
 In compliance of Accounting Standard-2 [Revised], the Company has
 provided liability of Excise Duty amounting to Rs. 1173 Lakhs [Previous
 Year Rs. 2130 Lakhs] on the stocks of Finished Goods lying at Works.
 However, there is no impact on the profit for the current year.
 
 The Excise Duty of Rs. 1182 Lakhs [Previous Year Debit Rs. 1164 Lakhs]
 related to difference between Closing and Opening Stock has been
 credited in the Statement of Profit & Loss.
 
 NOTE No.8
 
 The External Commercial Borrowings [ECBs] outstanding as on 31.03.2014
 of USD 32.50 million, USD 9.52 million, JPY 408.84 million, GBP 17.42
 million, CAD 30.81 million and USD 150 million are hedged in respect of
 coupon as well as repayment. Hedging of JPY to USD in respect of JPY
 408.84 million yet to be done.
 
 As on 31.03.2014, the Company has outstanding exposure of USD 110.40
 million [unhedged] against Foreign Currency Convertible Bonds [2012].
 
 NOTE No.9
 
 Related Parties disclosures, as required in terms of Accounting
 Standard [AS] 18 are given below:
 
 Relationships
 
 [a] Subsidiary Companies [including their subsidiaries]:
 
 [i] Jaiprakash Power Ventures Limited
 
 [ii] Jaypee Infratech Limited
 
 [iii] Himalyan Expressway Limited
 
 [iv] Jaypee Ganga Infrastructure Corporation Limited
 
 [v] Jaypee Sports International Limited
 
 [vi] Jaypee Agra Vikas Limited
 
 [vii] Jaypee Cement Corporation Limited
 
 [viii] Jaypee Fertilizers & Industries Limited
 
 [ix] Himalyaputra Aviation Limited
 
 [x] Jaypee Assam Cement Limited
 
 [xi] Sangam Power Generation Company Limited [subsidiary of Jaiprakash
 Power Ventures Limited]
 
 [xii] Prayagraj Power Generation Company Limited [subsidiary of
 Jaiprakash Power Ventures Limited]
 
 [xiii] Jaypee Meghalaya Power Limited [subsidiary of Jaiprakash Power
 Ventures Limited]
 
 [xiv] Jaypee Health Care Limited [w.e.f. 30.10.2012] [subsidiary of
 Jaypee Infratech Limited]
 
 [xv] Jaypee Cement Cricket (India) Limited [w.e.f. 20.10.2012]
 [subsidiary of Jaypee Sports International Limited]
 
 [xvi] Jaypee Cement Hockey (India) Limited [w.e.f. 05.11.2012]
 [subsidiary of Jaypee Sports International Limited]
 
 [xvii] Jaypee Agri Initiatives Company Limited [w.e.f. 25.03.2013]
 [subsidiary of Jaypee Cement Corporation Limited]
 
 [xviii] Himachal Baspa Power Company Limited [w.e.f. 14.03.2014]
 [subsidiary of Jaiprakash Power Ventures Limited]
 
 [xix] Himachal Karcham Power Company Limited [w.e.f. 14.03.2014]
 [subsidiary of Jaiprakash Power Ventures Limited]
 
 [b] Joint Venture Subsidiaries :
 
 [i] Bhilai Jaypee Cement Limited
 
 [ii] Bokaro Jaypee Cement Limited
 
 [iii] Gujarat Jaypee Cement & Infrastructure Limited
 
 [iv] Jaypee Powergrid Limited [Joint Venture Subsidiary Company of
 Jaiprakash Power Ventures Limited]
 
 [v] Jaypee Arunachal Power Limited [Joint Venture Subsidiary Company of
 Jaiprakash Power Ventures Limited]
 
 [c] Associate Companies:
 
 [i] Jaypee Infra Ventures [A Private Company with unlimited liability]
 
 [ii] Jaypee Development Corporation Limited
 
 [iii] Jaiprakash Kashmir Energy Limited
 
 [iv] JIL Information Technology Limited
 
 [v] Gaur & Nagi Limited
 
 [vi] Indesign Enterprises Private Limited
 
 [vii] Sonebhadra Minerals Private Limited
 
 [viii] RPJ Minerals Private Limited
 
 [ix] Jaiprakash Agri Initiatives Company Limited [till 24.03.2013]
 
 [x] Tiger Hills Holiday Resort Private Limited
 
 [xi] Anvi Hotels Private Limited
 
 [xii] Sarveshwari Stone Products Private Limited
 
 [xiii] Rock Solid Cement Limited
 
 [xiv] Jaypee International Logistics Company Private Limited
 
 [xv] Jaypee Hotels Limited
 
 [xvi] Jaypee Mining Venture Private Limited
 
 [xvii] Ceekay Estates Private Limited
 
 [xviii] Jaiprakash Exports Private Limited
 
 [xix] Bhumi Estate Developers Private Limited
 
 [xx] PAC Pharma Drugs and Chemicals Private Limited
 
 [xxi] Jaypee Technical Consultants Private Limited
 
 [xxii] Jaypee Uttar Bharat Vikas Private Limited [Joint Venture]
 
 [xxiii] Kanpur Fertilizers & Cement Limited [Joint Venture]
 
 [xxiv] Madhya Pradesh Jaypee Minerals Limited [Joint Venture]
 
 [xxv] MP Jaypee Coal Limited [Joint Venture]
 
 [xxvi] MP Jaypee Coal Fields Limited [Joint Venture]
 
 [xxvii] Andhra Cements Limited
 
 [xxviii] Milestone Home Finance Company Private Limited [w.e.f.
 28.09.2012 & upto 12.03.2014]
 
 [xxix] Jaypee Jan Sewa Sansthan [''Not for Profit'' Private Limited
 Company] [w.e.f. 12.06.2012]
 
 [d] Key Management Personnel, where transactions have taken place: [i]
 Shri Manoj Gaur, Executive Chairman & C.E.O.
 
 [ii] Shri Sunil Kumar Sharma, Executive Vice Chairman
 
 [iii] Shri Sarat Kumar Jain, Vice Chairman
 
 [iv] Shri Sunny Gaur, Managing Director [Cement]
 
 [v] Shri Pankaj Gaur, Joint Managing Director [Construction]
 
 [vi] Shri Shyam Datt Nailwal, Director [Finance]
 
 [vii] Shri Ranvijay Singh, Whole time Director
 
 [viii] Shri Ravindra Kumar Singh, Whole time Director till 14.10.2012
 
 [ix] Shri Rahul Kumar, Whole time Director & C.F.O.
 
 [e] Relatives of Key Management Personnel, where transactions have
 taken place [i] Shri Jaiprakash Gaur
 
 [ii] Shri Nanak Chand Sharma [iii] Shri Gyan Prakash Gaur [iv] Shri
 Suresh Kumar [v] Shri Pawan Kumar Jain [vi] Shri Sameer Gaur [vii] Smt
 Rita Dixit [viii] Shri Sachin Gaur [ix] Shri Raj Kumar Singh [x] Shri
 Praveen Kumar Singh [xi] Shri Naveen Kumar Singh [xii] Smt. Manju
 Sharma [xiii] Smt Neha Goyal
 
 Note: Related party relationships are as identified by the Company and
 relied upon by the Auditors.
 
 NOTE No.10
 
 (a) Provident Fund - Defined Contribution Plan
 
 All employees are entitled to Provident Fund benefits. Rs. 3098 Lakhs
 [Previous Year Rs. 3014 Lakhs] has been debited in the Statement of
 Profit & Loss during 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 has been
 appointed for management of the Trust Fund for the benefit of the
 employees.
 
 NOTE No.11
 
 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.12
 
 The Company has signed Agreement for sale of 74% stake (9,89,01,000
 equity shares owned by it) in the paid-up equity share capital of
 Bokaro Jaypee Cement Limited (BOJCL) [a joint venture between the
 Company and Steel Authority of India Ltd (SAIL)] to M/s. Dalmia Cement
 (Bharat) Limited or any of its Associates / Affiliates. The above stake
 sale is subject to the approval of SAIL and such other approvals, as
 may be necessary from lenders of BoJCL and concerned authorities. The
 consideration for the transaction works out to approximately Rs. 69.74
 per share.
 
 NOTE No.13
 
 Figures for the previous year have been regrouped/recast/rearranged
 wherever considered necessary to conform to this year''s classification.
 
 NOTE No.14
 
 All the figures have been rounded off to the nearest lakh Rs.
Source : Dion Global Solutions Limited
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