JBF Industries

(Rs. In Crores)
                                      Current Year     Previous Year
 
 a) Estimated amount of Contract 
    remaining to be executed on Capital
    Account and not provided for 
    (net of advances) (Cash outflow is
    expected on execution of such 
    capital contracts, on 
    progressive basis)                  93.43            14.43
 
 b) Contingent Liabilities:
    Guarantees issued by the 
    Bankers                            152.43           110.07
    (Bank guarantees are provided 
    under contractual/legal 
    obligation . No cash outflow 
    is expected.)
 
 II Letter of Credit
   (These are established in favour of 
    vendors but cargo/material under
    the aforesaid Letter of Credit are 
    yet to be received 125.58 62.15
    as on year end date. Cash outflow 
    expected on the basis of payment
    terms as mentioned in Letter
    of Credit.)
 
 III Corporate Guarantee to banks 
     against the Letter of credit 
     facility
     to Subsidiary Company.             120.63          95.23
     ( No Cash outflow is 
     expected)
     IV Disputed liabilities 
     in appeal:
 (i) Income Tax (Penalty imposed 
     U/s 271(1 C) of IT Act ,
     1961 no cash
     outflow is expected.)               -               0.22
 (ii) Excise Duty (Relating to 
     interpretation of 
     notification no cash
     out flow is expected.)             1.83             1.53
 (iii) Service Tax (relating 
      to Cenvat credit on
      commission paid to
      foreign agents. No cash 
      outflow is expected.)             1.49               -
 V    Claim against the Company 
      not acknowledged
      as debts                          0.09            0.09
 
 5.  Based on the legal opinion obtained by the Company, w.e.f. 1st
 April, 2008 foreign currency exchange difference on amount borrowed for
 acquisition of Fixed Assets was capitalised to the carrying cost of
 Fixed Assets as stipulated in Schedule VI to the Companies Act, 1956 as
 against charging the same to the Profit & Loss Account.  During the
 year, pursuant to the notification no. G.S.R: 225(E) issued by Ministry
 of Corporate Affairs on 31st March, 2009 exchange difference arising on
 long term foreign currency monetary items in so far as they relate to
 the acquisition of depreciable capital assets is added or deducted from
 the cost to such fixed assets and in other cases accumulated such
 difference in the Foreign Currency Monetary Items Translation
 Difference Account and amortised to Profit & Loss Account over the
 balance life of the such long-term foreign currency montery items but
 not beyond 31st March, 2011. Accordingly during the year ended 31st
 March 2009 foreign currency exchange difference of the Rs 39.40 crores
 has been capitalised, Rs. 16.28 crores has been transferred to Foreign
 Currency Monetary.Items Translation Difference Account.  Consequently
 the profit before tax during the year ended is higher by Rs 55.68
 crores.
 
 The Company has also recomputed the foreign currency exchange
 difference on long term foreign currency monetary items for the year
 ended 31st March,2008 and the amount of Rs. 0.94 crores ( net of
 deferred tax) has been withdrawn from opening General Reserve Account.
 
 6.  In accordance with the Accounting Standard (As -28 ) on Impairment
 of Assets As notified by Companies ( Accounting Standards) Rules 2006,
 during the year the company has reassessed its fixed assets and is of
 the view that no further impairment /reversal is considered to be
 necessary in view of its expected realizable value.
 
 7.  The Company has repurchased and cancelled 1430 Foreign Currency
 Convertible Bonds (FCCBs) of the Face Value of USD 10000 each on 20th
 April, 2009,as per the approval of the Reserve Bank of India, at a
 discount. Consequent upon such repurchased and cancellation, the
 Company a obligations to convert the said FCCBs into shares, if so
 claimed by the FCCB holders and/ or to redeem the same in foreign
 currency, have come to an end vis-s vis cancelled FCCBs. The impact of
 the same in accounts will be given in the next financial year.
 
 8.  On 31 st July, 2007, the Company had issued 52,00,000 share
 warrants (Excercise Price of Rs.122.50 each) on preferential basis to a
 Company controlled by the promotors,  having the currency period of 18
 months from the date of allotment. Out of the above, 25,00,000 share
 warrants were converted into the Equity Shares during the previous year
 ended 31st March, 2008. As the warrant holder holding remaining
 27,00,000 warrants who paid 30% consideration of Rs. 33,07crores has
 not exercised the option to acquire the Equity Shares, the Board of
 Directors forfeited the same and credited Rs.9.92 crores received
 against those warrants to Capital Reserve Account.
 
 9.  Debtors includes Rs. 2.81 Crores (Previous Year Rs.9.38 Crores) due
 from the firms in which one of the Directors and/or his relative are
 interested as partner.
 
 10.  Advances recoverable in cash or in kind or for value to be
 received includes Rs. 0.60 Crores (Previous Year Rs. 1.16 Crores) due
 from a firm in which one of the Directors and/or his relative are
 interested as partner., The maximum amount outstanding at any time
 during the year was Rs. 0.60 crores (Previous Year Rs. 1.16 Crores).
 
 11.  As per the Accounting standard -18, As notified by Companies
 (Accounting Standards) Rules 2006, the disclosure of transactions with
 related parties as defined in the Accounting Standard are given below:
 
 I.  Subsidiary Companies:
 
 JBF Global PTE. Ltd.  JBF RAK LLC.
 
 III.  Key Managerial Personnel:
 
 Mr. B.C. Arya .Mr. R.Gothi
 Mr. RN.Thakore Mr. N.K.Shah
 
 II. Enterprises over which the Key Managerial personnel & their
 relatives have significant influence
 
 Arya Texturisers & Twisters
 Arya Industries
 Lunia Brothers (Ceased to be a related party W.E.F 01.04.2008)
 
 Vaidic Resources Pvt. Ltd.
 
 IV. Relatives of Key Managerial Personnel:
 
 Mrs. Veena Arya         Relative of Shri B.C. Arya
 Mr. Cheerag Arya        Relative of Shri B.C. Arya
 Ms.Chinar Arya          Relative of Shri B.C. Arya
 Mrs. Usha Thakore       Relative of Shri P N Thakore
 Mr. Abhishek R. Gothi   Relative of Shri R. Gothi
 Mr. Abhishek P. Thakore Relative of Shri P.N. Thakore
 
 12. The Expense on account of forward premium on outstanding forward
 exchange contracts to be recognized in the profit & loss account of
 subsequent accounting year aggregate to Rs. 0.19 Crores (Previous Year
 Rs. 0.02 Crores).
 
 14. In the opinion of the management, the company is engaged only in
 the business of Synthetic Yarn, including chips. As such, there are no
 separate reportable segments.
 
 18.  In the opinion of the Management, the Current Assets, Loans and
 Advances are approximately of the value stated if realised in the
 ordinary course of business.
 
 19.  Income Tax Assessment of the Company has been completed up to the
 accounting year ended on 31 st March 2006.
 
 31. The company has paid Rs 0.80 Crores(Previous year Rs 0.30 Crares)
 to HDFC Asset Management company Limited (the Portfolio Manager) for
 providing Discretionary Portfolio Management Services which is in the
 nature of investment administrative management services and include the
 responsibility to manage .invest and operate the assets under the HDFC
 AMC PMS -Real Estate Portfolio -1 ( Real Estate Portfolio), as per
 the agreement dated 1st January,200S .The securities representing the
 outstanding balance of Rs.0.73 crores as at 31st March, 2009 ( Previous
 year Rs 0.22 crores) have been accounted as investment.
 
 33. Previous years figures have been reworked/ regrouped/ rearranged
 and reclassified wherever necessary.