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Jaiprakash Power Ventures
BSE: 532627|NSE: JPPOWER|ISIN: INE351F01018|SECTOR: Power - Generation/Distribution
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Notes to Accounts Year End : Mar '13
Note 1 Basis of Preparation of Financial Statements
 
 (a) The accounts are prepared on the historical cost basis and on the
 principles of going concern.
 
 (b) Accounting policies not specifically referred to otherwise are
 being consistently followed and are in accordance with generally
 accepted accounting principles.
 
 Note 2.1 The rights, preferences and restrictions attaching to each
 class of shares including restrictions on the distribution of dividends
 and the repayment of capital
 
 The Company has issued only one class of equity shares having a par
 value of Rs. 10/- per share which rank pari-passu in all respects
 including voting rights and entitlement to dividend.
 
 In the event of liquidation, each share carry 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.
 
 The Authorised Share Capital provides for Preference Share at a par
 value of Rs. 100/- each. The Company has so far not issued any
 Preference Share.
 
 Note 2.2 Equity Shares in respect of each class in the Company held by
 its holding company or its ultimate holding company including shares
 held by or by subsidiaries or associates of the holding company or the
 ultimate holding company in aggregate 1,78,30,00,600 Equity shares are
 held by Jaiprakash Associates Limited, the holding company.
 
 12,56,47,637 Equity shares are held by Jaypee Infra Ventures (A Private
 Company with unlimited liability), associate company of Jaiprakash
 Associates Limited.
 
 Note 2.3 Equity shares reserved for issue under options and
 contracts/commitments for the sale of shares/ disinvestments, including
 terms and amounts
 
 The Company had issued 2,000 Nos. 5% Foreign Currency Convertible Bonds
 (FCCB) of US$ 1 Lac each aggregating to US$ 2000 Lacs at par on
 12.02.2010. These Bonds are convertible at the option of the
 bond-holders into equity shares of Rs. 10/- each fully paid up at the
 conversion price ofRs. 85.8139 per share, subject to the terms of issue
 with a Axed exchange rate of Rs. 46.14 equal to US$ 1 at any time on or
 after 25.03.2010 and prior to the close of business on 06.02.2015.
 
 No conversion has taken place upto 31st March, 2013.
 
 The bonds are redeemable at maturity on 13.02.2015 at a YTM of 7% p.a.
 inclusive of coupon rate of 5% p.a. [value as on 31.03.2013 in US$ 1.06
 Lacs (Previous Year US.04 Lacs) for a principal amount of US$ 1 Lac
 each]. A reserve aggregating to Rs. 6,875 Lacs up to 31.03.2013
 (Previous Year Rs. 3,935 Lacs) has been created for the redemption
 premium.
 
 No shares have been reserved for issue under options and
 contracts/commitments for the sale of shares/disinvestments.
 
 The Company had issued 2,000 Nos. 5% Foreign Currency Convertible Bonds
 (FCCB) of US$ 1 Lac each aggregating to US$ 2,000 Lacs at par on
 12.02.2010. These Bonds are convertible at the option of the
 bond-holders into equity shares of Rs. 10/- each fully paid up at the
 conversion price of Rs. 85.8139 per share, subject to the terms of
 issue with a Axed exchange rate ofRs. 46.14 equal to US$ 1 at any time
 on or after 25.03.2010 and prior to the close of business on
 06.02.2015.  Note 3.8 Calls unpaid (showing aggregate value of calls
 unpaid by directors and officers)
 
 There are no calls unpaid including by directors and officers of the
 Company.
 
 Note 2.4 Forfeited shares (amount originally paid up)
 
 The Company has not forfeited shares.
 
 3.1 300 MW Jaypee Baspa II HEP:
 
 3.1(a) Rupee Term Loans, Foreign Currency Loans, Working Capital
 Facilities aggregating to Rs. 73,211.36 Lacs and Deferred Payment
 Guarantee(s) from Financial Institutions and Banks, together with all
 interest, guarantee commission, cost, expenses and other charges are
 secured ranking pari-passu among all the participating Institutions and
 Banks viz. State Bank of India, Andhra Bank, Punjab National Bank, UCO
 Bank, Oriental Bank of Commerce, Allahabad Bank, United Bank of India,
 IDBI Bank Ltd., IFCI Ltd. and Power Finance Corporation Ltd., by way of
 :
 
 (i) First Charge on book debts, operating cash flows, receivables,
 commissions, revenue of whatsoever nature, present & future of the
 Baspa II HEP ; and
 
 (ii) First charge on all the Accounts of the Baspa II HEP including but
 not limited to the Trust & Retention Account, Escrow Account of HPSEB
 and Debt Service Reserve Account and other accounts required to be
 created under any Project Document or contract.
 
 The loans are inter-alia also secured by way of :
 
 (i) First charge on Baspa II HEP''s all intangible assets,
 hypothecation of all the movable assets, assignment of Project
 Agreements and Escrow Agreement, all present and future rights, titles,
 interests, benefits, claims and demands whatsoever with respect to the
 Insurance Policies, claims and benefits to all monies receivable there
 under and all other claims there under in respect of all the insured
 assets of the Plant ;
 
 (ii) First ranking equitable mortgage on all rights, titles, interests
 and benefits in respect of immovable properties, and assets of the
 Baspa II HEP ;
 
 (iii) Pledge of 6,291 Lacs equity shares of the Company held by
 Jaiprakash Associates Limited, (JAL) on pari-passu basis with lenders
 of Jaypee Vishnuprayag HEP and Jaypee Nigrie Super Thermal Power
 Project ; and
 
 (iv) Corporate Guarantee furnished by Jaiprakash Associates Limited
 (JAL), the Holding Company, for the outstanding financial assistance of
 Power Finance Corporation Ltd., as on 31.03.2013 amounting to Rs.
 7,115.20 Lacs (Previous Year Rs. 10,289.42 Lacs).
 
 3.1(b) The aforesaid security rank pari-passu for working capital limit
 (Fund based and non fund based) of Rs. 6,900 Lacs sanctioned by Punjab
 National Bank - Shimla with personal guarantees of Shri Jaiprakash Gaur
 - Founder Chairman, Shri Manoj Gaur - Chairman, Shri S.K. Sharma - Vice
 Chairman & CEO and Shri S. K. Jain-former Director of the Company.
 [Outstanding cash credit limit Rs. Nil (Previous Year Rs. 51 Lacs) and
 Bank Guarantees/LCs Rs. 4,511 Lacs (Previous Year Rs. 4,000 Lacs)]
 
 3.1(c) The Foreign Currency Loans under Buyers'' Credit are guaranteed
 by Deferred Payment Guarantee issued by Power Finance Corporation
 Limited.
 
 3.2 400 MW Jaypee Vishnuprayag HEP :
 
 3.2(a) Rupee Term Loans, Foreign Currency Loans and Working Capital
 Facilities aggregating to Rs. 1,13,213.46 Lacs from Financial
 Institutions and Banks, together with all interest, guarantee
 commission, cost, expenses and other charges are secured ranking pari
 passu among all the participating Institutions and Banks viz. State
 Bank of India, Andhra Bank, State Bank of Bikaner & Jaipur, State Bank
 of Patiala, State Bank of Travancore, Bank of India, Oriental Bank of
 Commerce, Allahabad Bank, Dena Bank, IDBI Bank Ltd., ICICI Bank Ltd.
 and Power Finance Corporation Ltd., by way of :
 
 (i) First charge on 400 MW Vishnuprayag HEP''s present and future book
 debts, operating cash flows, receivables, commissions, revenue of
 whatsoever nature ; and
 
 (ii) First charge on 400 MW Vishnuprayag HEP''s all the accounts
 including the Trust & Retention Account, Escrow Account of Uttar
 Pradesh Power Corporation Limited and Debt Service Reserve Account and
 each of the other accounts required to be created by the Company under
 any 400 MW Vishnuprayag HEP document.
 
 The loans are inter-alia also secured by way of:
 
 (i) First charge on 400 MW Vishnuprayag HEP''s all intangible assets,
 hypothecation of all the movable assets, assignment of Project
 Agreements and Escrow Agreement, all present and future rights, titles,
 interests, benefits, claims and demands whatsoever with respect to the
 Insurance Policies, claims and benefits to all monies receivable there
 under and all other claims there under in respect of all the insured
 assets of the Plant ;
 
 (ii) First ranking equitable mortgage on all rights, titles, interests
 and benefits in respect of immovable properties and assets of the 400
 MW Vishnuprayag HEP ;
 
 (iii) Pledge of 6,291 Lacs equity shares of the Company held by JAL on
 pari-passu basis with lenders of Baspa - II HEP and Nigrie Super
 Thermal Power Project ; and
 
 (iv) Corporate Guarantee furnished by JAL, the Holding Company, for
 outstanding financial assistance of Power Finance Corporation Ltd., as
 on 31.03.2013 amounting to US$ 130.99 Lacs (Previous Year US$
 161.81Lacs ).
 
 3.2(b) Working Capital Loan of Rs. 6,000 Lacs sanctioned by ICICI Bank
 Ltd. (outstanding Rs. 600 Lacs), is secured by second
 mortgage/hypothecation and charge on all movable and immovable assets
 of 400 MW Jaypee Vishnuprayag HEP (including all revenues, receipts,
 receivables and intangible properties) both present and future and
 second charge on bank accounts including Trust and Retention accounts
 of the Plant.
 
 3.3 1000 MW Jaypee Karcham Wangtoo HEP:
 
 3.3(a) The Rupee Term Loan assistance of Rs. 4,47,304 Lacs (Previous
 Year Rs. 4,56,123 Lacs) by financial institutions and banks viz. Punjab
 National Bank, Union Bank of India, Allahabad Bank, Indian Bank,
 Central Bank of India, Bank of India, IDBI Bank Ltd., ICICI Bank Ltd.,
 Jammu and Kashmir Bank Ltd., Infrastructure Development Finance Company
 Ltd. and SIDBI, together with all interest, cost and other charges/dues
 are secured by way of :
 
 (i) First ranking pari-passu mortgage and hypothecation of all the
 immovable and movables assets both present and future, all intangible
 assets, uncalled capital and all revenues and receivables pertaining to
 Jaypee Karcham Wangtoo HEP and English mortgage on immovable property
 at Vadgaon, Taluka Mawal, District Pune, Maharashtra ; and
 
 (ii) Pledge of 1,206 Lacs (Previous Year 1,206 Lacs) equity shares of
 the Company held by JAL on pari passu basis with the lenders of Rupee
 Term Loan and Working Capital facilities.
 
 3.3(b) The aforesaid Security ranks pari-passu with working capital
 lender (i.e. IDBI Bank Limited) for Working Capital limit of Rs. 30,500
 Lacs [Outstanding Cash credit limit Rs. 9,486 Lacs (Previous Year Rs.
 Nil) and Bank Guarantees/LCs of Rs. 2,867 Lacs (Previous Year Rs.182
 Lacs)].
 
 3.4 500 MW Jaypee Bina Thermal Power Plant:
 
 3.4(a) Rupee Term Loans of Rs. 2,19,774 Lacs (Previous Year Rs.
 1,87,888 Lacs) availed out of amount of Rs. 2,25,800 Lacs (existing Rs.
 1,92,800 Lacs and additional Rs. 33,000 Lacs) from consortium of
 Financial Institutions and Banks, together with all interest, guarantee
 commission, cost, expenses and other charges are secured ranking pari
 passu among all the participating Institutions and Banks viz. Punjab
 National Bank, Union Bank of India, Allahabad Bank, Canara Bank,
 Central Bank of India, State Bank of Patiala, State Bank of Hyderabad,
 IDBI Bank Ltd., ICICI Bank Ltd. and The Jammu and Kashmir Bank Ltd.,
 are secured by:
 
 (i) First ranking pari-passu mortgage and hypothecation of all
 immovable and movables assets both present and future, all intangible
 assets, and all revenues and receivables pertaining to Jaypee Bina
 Thermal Power Plant ; and
 
 (ii) Pledge of 648.09 Lacs equity shares (Previous Year 648.09 Lacs
 equity shares) of the Company held by JAL, on pari-passu basis with the
 lenders.
 
 3.4(b) The aforesaid security ranks pari-passu with working capital
 lenders (i.e. IDBI Bank Limited, State Bank of Patiala and Jammu &
 Kashmir Bank Ltd.) for working capital limit of Rs. 31,700 Lacs
 (Previous Year Rs. 7,500 Lacs). Fund based limit outstanding Rs. 14,221
 Lacs (Previous Year Rs. Nil) and Bank Guarantees/LCs outstanding of Rs.
 7,704.20 (Previous Year Rs. 4,808 Lacs).
 
 3.5 1320 MW Jaypee Nigrie Super Thermal Power Project :
 
 3.5(a) Financial assistance of Rs. 4,88,613 Lacs (Previous Year Rs.
 2,23,169 Lacs) availed out of amount of Rs. 5,67,000 Lacs (INR 4,82,110
 Lacs and External Commercial Borrowing (ECB) amounting to Jap. Yen
 15.30 Billion equivalent to Rs. 84,890 Lacs) from consortium of
 Financial Institutions and Banks, together with all interest, guarantee
 commission, cost, expenses and other charges are secured ranking
 pari-passu among all the participating Institutions and Banks viz.
 Punjab National Bank, Canara Bank, Central Bank of India, Oriental Bank
 of Commerce, Bank of Baroda, Bank of Maharashtra, Indian Overseas Bank,
 Syndicate Bank, UCO Bank, United Bank of India, State Bank of Bikanar &
 Jaipur, State Bank of Patiala, State Bank of Hyderabad, Corporation
 Bank, IDBI Bank Ltd., ICICI Bank Ltd., IDFC Ltd. and LIC of India, are
 secured by way of :
 
 (i) First ranking pari-passu mortgage and hypothecation of all
 immovable and movables assets both present and future, all intangible
 assets, and all revenues and receivables pertaining to the Jaypee
 Nigrie Super Thermal Power Project ; and
 
 (ii) Pledge of 6,291 Lacs equity shares (Previous Year 6,291 Lacs
 equity shares) of the Company held by JAL on pari-passu basis with
 lenders of Jaypee Baspa - II HEP and Jaypee Vishnuprayag HEP
 
 3.5(b) Bank Guarantee limit of Rs. 10,000 Lacs sanctioned by IDBI Bank
 Limited. Bank Guarantees outstanding for Rs. 10,000 Lacs (Previous Year
 Rs. 10,000 Lacs). The said Bank Guarantee is secured by way of
 subservient charge on the movable assets of the Jaypee Nigrie STPP and
 also by personal guarantee of Shri Manoj Gaur, Chairman of the Company.
 
 3.6 Rupee Term Loan/Corporate Loan:
 
 (i) Rupee Term Loan of Rs. 1,00,000 Lacs sanctioned by ICICI Bank
 Limited together with all interests, liquidated damages, front end fee,
 premia on prepayment, costs, charges, expenses and other monies is
 secured by (i) second charge on all present and future movable and
 immovable properties and assets of Sangam Power Generation Company
 Limited and Prayagraj Power Generation Company Limited (subsidiaries of
 the Company) and first charge on the designated bank account together
 with all the monies therein, (ii) pledge of 4,800Lacs equity shares of
 Rs. 10/- each fully paid up (Previous Year - 5,279 Lacs equity shares)
 of the Company held by JAL.  As on 31.03.2013 outstanding amount of
 Rupee Term Loan was Rs. 70,000 Lacs (Previous Year Rs. 1,00,000 Lacs).
 
 (ii) Rupee Term Loan of Rs. 1,00,000 Lacs sanctioned by State Bank of
 India during the financial year 2012-13, is secured by residual charge
 on all movable and immovable fixed assets of the Company on pari-passu
 basis with Non-Convertible Debentures (Rs. 98,259 Lacs) subscribed by
 ICICI Bank and pledge of 1,500 Lacs equity shares of the Company held
 by JPVL Trust. As on 31.03.2013 outstanding amount of Rupee Term Loan
 was Rs. 1,00,000 Lacs (Previous Year-Nil).
 
 3.7 The Non-Convertible Debentures (series II) of Rs. 98,259 Lacs,
 subscribed by ICICI Bank Limited are secured by :
 
 (i) Residual charge on the entire fixed assets of the Company ;
 
 (ii) Unconditional and irrevocable personal guarantee of Shri Manoj
 Gaur, Chairman towards repayment of principal and premium on redemption
 of Debentures ; and
 
 (iii) Letter of Comfort from Jaiprakash Associates Limited, the holding
 company.
 
 3.8 Repayment of Term Loans and Non-Convertible Debentures
 
 3.8(a) 300 MW Jaypee BASPA-II HEP :
 
 Rupee Term Loans (Rs. 84,500 Lacs) are repayable in 56 installments
 payable in July, August, September and October every year, which
 commenced from July, 2010 except for the following variation:
 
 3.8(b) 400 MW Jaypee Vishnuprayag HEP :
 
 Rupee Term Loans (Rs. 1,65,000 Lacs) are repayable in 54 equal
 quarterly installments payable in February, May, August and November
 every year, which commenced from November, 2009.
 
 3.8(c) 1000 MW Jaypee Karcham Wangtoo HEP :
 
 Rupee Term Loans (Rs. 4,79,254 lacs) are repayable in 75 equal
 installments payable in June, July, August, September & October every
 year, which commenced 15th June, 2012.
 
 3.8(d) 500 MW Jaypee Bina Thermal Power Plant :
 
 Rupee term Loans (Rs.1,92,800 Lacs) are repayable in 40 equal quarterly
 installments which commenced from 1st March, 2013 for 80% of loan and
 balance 20% in 41st Installment payable on 1st March, 2023.
 
 Rupee term Loans (Rs. 33,000 Lacs) are repayable in 40 equal quarterly
 installments which commenced from 1st January, 2013 for 80% of loan and
 balance 20% in 41st Installment payable on 1st January, 2023.
 
 3.8(e) 1320 MW Jaypee Nigrie Super Thermal Power Project :
 
 Rupee Term Loans (Rs. 4,17,250 Lacs) are repayable in 40 equal
 quarterly installments commencing from November, 2014.
 
 External Commercial Borrowings (Japanese Yen 1,21,800 Lacs) are
 repayable in 20 equal half yearly installments commencing from
 November, 2014.
 
 3.8(f) Other Financial Assistance :
 
 (i) Rupee Term Loan of Rs. 1,00,000 Lacs of ICICI Bank Limited is
 repayable in 9 quarterly installments payable in February, May, August
 and November each year which commenced from August, 2012.
 
 (ii) Rupee Term Loan of Rs. 1,00,000 Lacs (Amount drawn Rs. 50,000
 Lacs) of State Bank of India is repayable in 4 equal installments
 payable on 30th September, 2014, 30th September, 2015, 30th September,
 2016, 30th September, 2017.
 
 3.9 Unsecured Loans
 
 (i) Unsecured loan of Rs. 1,000 Lacs is repayable to Government of
 Uttarakhand/Uttar Pradesh, which would be paid after having decision
 arrived between Government of Uttar Pradesh and Government of
 Uttarakhand for receipt of said payment.
 
 (ii) The Company had issued 2,000 Nos. 5% Foreign Currency Convertible
 Bonds (FCCB) of US$ 1 Lac each aggregating to US$ 2000 Lacs at par on
 12.02.2010. These Bonds are convertible at the option of the
 bond-holders into equity shares of Rs. 10/- each fully paid up at the
 conversion price of Rs. 85.8139 per share, subject to the terms of
 issue with a Axed exchange rate of Rs. 46.14 equal to US$ 1 at any time
 on or after 25.03.2010 and prior to the close of business on
 06.02.2015.
 
 No conversion has taken place upto 31st March, 2013.
 
 The bonds are redeemable at maturity on 13.02.2015 at a YTM of 7% p.a.
 inclusive of coupon rate of 5% p.a.  [value as on 31.03.2013 in US$
 1.06 Lacs (Previous Year US.04 Lacs) for a principal amount of US$ 1
 Lac each].  A reserve aggregating to Rs. 6,875 Lacs up to 31.03.2013
 (Previous Year - Rs. 3,935 Lacs) has been created for the redemption
 premium.
 
 As on 31.03.2013 the Company has outstanding exposure of US$ 2000 Lacs
 against FCCB unhedged, pending conversion into equity share capital.
 (An amount of US$ 145.03 Lacs (hedged)(Previous Year US $.242.64 Lacs)
 out of FCCB funds is parked overseas pending utilization as on
 31.03.2013.)
 
 Note 4
 
 In the opinion of the Board of Directors, the Non Current Assets and
 Long Term Loans and Advances, 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 5
 
 Corporate Guarantee
 
 The Company has given Corporate Guarantee of USD 1500 Lacs (equivalent
 to Rs. 84,000 Lacs) in favour of State Bank of india, Hong Kong branch
 for the credit facilities granted by lenders to Jaiprakash Associates
 Limited.
 
 Note 6
 
 Advance to Suppliers, Contractors and others shown under Long Term
 Loans and Advances in Note ''16'' and under Short Term Loans &
 Advances in Note ''21'' includes Advance to Jaiprakash Associates
 Limited, the holding Company under EPC Contract for Rs. 586.84 Lacs
 (Previous Year Rs. 7,145.79 Lacs) and Rs. 311.46 Lacs (Previous Year
 Rs. 134.41 Lacs) respectively. Maximum amount outstanding during the
 Year was Rs. 756.21 Lacs (Previous Year Rs. 24,579 Lacs ).
 
 Note 7
 
 Related Party Disclosures, as required in terms of Accounting
 Standard [AS] 18 are given below:
 
 (1) Relationships (Related party relationships are as identified by the
 Company and relied upon by the Auditors)
 
 (a) Holding Company
 
 Jaiprakash Associates Limited
 
 (b) Subsidiary Companies:
 
 (1) Jaypee Powergrid Limited
 
 (2) Sangam Power Generation Company Limited
 
 (3) Prayagraj Power Generation Company Limited
 
 (4) Jaypee Arunachal Power Limited
 
 (5) Jaypee Meghalaya Power Limited
 
 (c) Fellow Subsidiary Companies:
 
 (1) Jaypee Ganga Infrastructure Corporation Limited
 
 (2) Himalyan Expressway Limited
 
 (3) Jaypee Infratech Limited
 
 (4) Jaypee Sports International Limited
 
 (5) Jaypee Cement Corporation Limited (JCCL)
 
 (6) Bhilai Jaypee Cement Limited
 
 (7) Bokaro Jaypee Cement Limited
 
 (8) Gujarat Jaypee Cement & Infrastructure Limited
 
 (9) Jaypee Agra Vikas Limited
 
 (10) Jaypee Fertilizers & Industries Limited
 
 (11) Jaypee Assam Cement limited
 
 (12) Himalayaputra Aviation Limited
 
 (13) Jaypee Healthcare Limited (w.e.f. 30.10.2012)
 
 (14) Jaypee Cement Cricket (India) Limited (w.e.f. 20.10.2012)
 
 (15) Jaypee Cement Hockey (India) Limited (w.e.f. 05.11.2012)
 
 (16) Jaiprakash Agri Initiatives Company Limited (subsidiary of JCCL
 w.e.f. 25.03.2013)
 
 (d) Associate Companies/Concerns:
 
 (1) Jaypee Infra Ventures (A Private Company with unlimited liability)
 
 (2) Jaypee Development Corporation Limited [(subsidiary of Jaypee Infra
 Ventures (A Private Company with unlimited liability)]
 
 (3) JIL Information Technology Limited [(subsidiary of Jaypee Infra
 Ventures (A Private Company with unlimited liability)]
 
 (4) Gaur & Nagi Limited (subsidiary of JIL Information Technology
 Limited)
 
 (5) Indesign Enterprises Pvt. Limited [(subsidiary of Jaypee Infra
 Ventures (A Private Company with unlimited liability)]
 
 (6) GM Global Mineral Mining Private Limited (subsidiary of Indesign
 Enterprises Pvt. Limited)
 
 (7) Jaypee International Logistics Company Private Limited [(subsidiary
 of Jaypee Infra Ventures (A Private Company with unlimited liability)]
 
 (8) Tiger Hills Holiday Resort Private Limited (subsidiary of Jaypee
 Development Corporation Limited)
 
 (9) Anvi Hotels Private Limited [(subsidiary of Jaypee Infra Ventures
 (A Private Company with unlimited liability)]
 
 (10) Jaypee Uttar Bharat Vikas Private Limited
 
 (11) Kanpur Fertilisers and Cement limited (subsidiary of Jaypee Uttar
 Bharat Vikas Pvt. Limited)
 
 (12) RPJ Minerals Private Limited
 
 (13) Sarveshwari Stone Products Pvt. Ltd. (subsidiary of RPJ Minerals
 Private Limited)
 
 (14) Rock Solid Cement Limited (subsidiary of RPJ Minerals Private
 Limited)
 
 (15) Sonebhadra Minerals Private Limited
 
 (16) MP Jaypee Coal Limited
 
 (17) Madhya Pradesh Jaypee Minerals Limited
 
 (18) MP Jaypee Coal Fields Limited
 
 (19) Jaiprakash Kashmir Energy Limited
 
 (20) Jaypee Hotels Limited
 
 (21) Milestone Home Finance Company Private Limited (subsidiary of
 Jaypee Hotels Limited w.e.f. 28.09.2012)
 
 (22) Jaypee Mining Venture Private Limited
 
 (23) Ceekay Estate Private Limited
 
 (24) Pac Pharma Drugs and Chemicals Private Limited
 
 (25) Akasva Associates Private Limited
 
 (26) Jaiprakash Exports Private Limited
 
 (27) Bhumi Estate Developers Private Limited
 
 (28) Jaypee Technical Consultants Private Limited
 
 (29) Andhra Cements Limited (subsidiary of Jaypee Development
 Corporation Limited)
 
 (30) Jaypee Jan Sewa Sansthan (Rs.Not for profit'' Private limited
 Company w.e.f. 12.06.2012)
 
 (e) Key Management Personnel:
 
 Jaiprakash Power Ventures Limited
 
 (1) Shri Manoj Gaur, Chairman
 
 (2) Shri Sunil Kumar Sharma, Vice Chairman and CEO
 
 (3) Shri Suren Jain, Managing Director and CFO
 
 (4) Shri R.K. Narang, Whole-time Director
 
 (5) Shri Suresh Chandra, Whole-time Director
 
 (6) Shri Parveen Kumar Singh, Whole-time Director
 
 (7) Shri Dharam Paul Goyal, Whole-time Director (up to 31.03.2013)
 
 (8) Shri Ravindra Mohan Chadha, Whole-time Director (up to 31.03.2013)
 
 Guarantees given by the holding company on behalf of the Company and
 guarantee given by the Company on behalf of the holding company have
 been mentioned elsewhere in the Notes to Financial Statements.
 
 Note 8
 
 (a) Provident Fund - Defined Contribution Plan
 
 Employees are entitled to Provident Fund benefits. Amount debited to
 Profit and Loss account including Administrative and Employees Deposit
 Linked Insurance charges Rs. 213 Lacs during the year (Previous Year
 157.00 Lacs) and Rs. 55 Lacs (Previous Year Rs. 60 Lacs) booked in
 Incidental Expenses during construction pending capitalisation.
 
 (b) Gratuity - The liability for Gratuity is provided on the basis of
 Actuarial Valuation made at the end of each financial year. The
 Actuarial Valuation is made on Projected Unit Credit method as per AS
 15(revised). Jaiprakash Associates Limited {JAL} (the Company''s
 holding company) has constituted a Gratuity Fund Trust under the name
 Jaiprakash Associates Employees Gratuity Fund Trust vide Trust Deed
 dated 30th March, 2009 for JAL and its subsidiaries and appointed SBI
 Life Insurance Co. Ltd. for the management of the Trust Funds for the
 benefits of employees.  As a subsidiary of JAL, the Company is
 participating in the Trust Fund by contributing its liability accrued
 up to the close of each financial year to the Trust Fund.
 
 Note 9
 
 (a) Pursuant to Revised Schedule-VI of the Companies Act, 1956 and
 Guidance Note issued by the Institute of Chartered Accountants of India
 requiring recognition of MAT credit in the Books of Accounts, the MAT
 credit entitlement and Deferred Tax Liability (Net) has been recognised
 in the Books of Accounts from the financial year 2011-12.
 
 (b) As there is no taxable profit up to 31st March, 2013, no income tax
 amount has been provided for the period up to 31st March, 2013.  The
 MAT chargeable on book profit up to 31st March, 2013 has been treated
 as MAT credit entitlement. Further deferred tax liability of Rs. 1,989
 Lacs has been provided for the year ended 31st March, 2013.
 
 (c) Wealth Tax liability of Rs. 0.96 Lacs has been provided in
 Statement of Profit & Loss.
 
 Note 10
 
 (a) A Power Purchase Agreement (PPA) for sale of 704 MW power, out of
 1000 MW power from the Karcham Wangtoo HEP to Power Trading Corporation
 (India) Limited (PTC) was executed by erstwhile JKHCL (since merged
 with the Company) on 21st March, 2006 for a term of 35 years with the
 stipulation that the tariff for sale of power shall be as approved by
 Central Electricity Regulatory Commission (CERC) based on the
 completion cost to be approved by Central Electricity Authority
 (CEA)/Central Electricity Regulatory Commission. It was subsequently
 found that the Electricity Act, 2003, does not provide for the
 determination of tariff for sale of power by a Generating Company to a
 Trading company and therefore based on the legal opinion the said PPA
 was considered to be void and PTC was informed accordingly.  PTC had
 approached the Hon''ble High Court of Delhi with a prayer for
 restraining the Company from entering into agreement for sale of
 aforesaid power to any third party which was rejected.  The PTC then
 filed a SLP in the Hon''ble Supreme Court against the order of
 Hon''ble High Court of Delhi, which is pending.
 
 During the proceedings before Hon''ble High Court of Delhi, PTC
 invoked the arbitration clause of the PPA against Company''s stand
 that the PPA was void and an Arbitral Tribunal consisting of three
 members was constituted. The Arbitral Tribunal, by its majority Award
 dated 28th April, 2011, dismissed the claim of PTC and declared the PPA
 to be void. PTC challenged the said Award before the Hon''ble High
 Court of Delhi. The Learned Single bench Judge of the Hon''ble High
 Court of Delhi vide its judgment and order dated 15th May, 2012 set
 aside the majority Award and concluded that the PPA is not void.
 Company filed an Appeal against the said judgment before the Division
 Bench of the Hon''ble High Court of Delhi which is pending.
 
 (b) The Haryana Power Generation Corporation Limited (HPGCL) with whom
 the PTC had entered into a Power Sale Agreement (PSA) for sale of 200
 MW out of 704 MW power covered by the PPA has approached Haryana
 Electricity Regulatory Commission (HERC) to direct the Company to
 supply 200 MW power to PTC for onward supply to HPGCL. The Company has
 taken a position that HPGCL has no privity of contract with the Company
 and HERC has no jurisdiction in the matter. HERC has however held that
 it has jurisdiction in the matter and therefore the Company has filed
 an Appeal before the Appellate Tribunal for Electricity (APTEL) against
 the order of HERC. APTEL vide its order dated 20th July, 2012 set aside
 the HERC''s order and held that HERC has no jurisdiction in the
 matter. PTC has filed a Civil Appeal before Supreme Court of India with
 a prayer to set aside the APTEL Judgment dated 20th July, 2012 which is
 pending.
 
 Note 11
 
 (i) 900 Lacs Equity Shares of Rs. 10/- each fully paid (Previous Year
 840 Lacs) held by the Company of Jaypee Powergrid Ltd. (Subsidiary
 Company) are pledged with Security Trustees, IDBI Trusteeship Services
 Ltd., as collateral security for the financial assistance granted by
 lenders to Jaypee Powergrid Ltd.
 
 (ii) 7,844.77 Lacs Equity Shares of Rs. 10/- each fully paid (Previous
 Year 3,535.27 Lacs) held by the Company of Prayagraj Power Generation
 Co. Ltd. (Subsidiary Company) are pledged with Security Trustees, SBI
 Cap Trusteeship Services Ltd., as collateral security for the financial
 assistance granted by lenders to Prayagraj Power Generation Co. Ltd.
 
 Note 12
 
 (a) The Company has presently one operative segment i.e. Generation of
 Power. The Company had commenced construction of Cement Grinding Unit
 at Jaypee Nigrie Super Thermal Power Plant, for gainful utilisation of
 dry fly ash and as mandated by Ministry of Environment and Forests.
 Accordingly, now the Company has two segments, Power Generation and
 Cement. As total assets employed in Cement Grinding Unit are less than
 10% of the total assets of the Company, therefore, separate segment
 reporting is not applicable.
 
 (b) The operations of the Company are carried within the Country and
 therefore geographical segments are not applicable.
 
 Note 13
 
 In terms of ''Accounting Standard (AS) 28'', the assets are not
 impaired because the recoverable amount of Axed assets collectively
 determined by the present value of estimated future cash flows is
 higher than its carrying value.
 
 Note 14
 
 All the figures have been rounded offto the nearest rupees in lacs.
 
 Note 15
 
 Previous Year''s figures have been regrouped/re-arranged , wherever
 considered necessary to make them conform to the figures for the
 current year.
Source : Dion Global Solutions Limited
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