1.  GENERAL INFORMATION
 
 JCT Limited (the Company) is primarily a manufacturer of cloth and
 nylon filament yarn. The Company''s manufacturing facilities are
 located in Phagwara and Hoshiarpur.
 
 2.1 10,00,000 OPCPS of Rs.1,000 lakhs are redeemable on 31.12.2016
 (date extended from 31.12.2011). 20% of the face value is optionally
 covertible into equity shares during the currency of OPCPS.They are
 neither entitled to dividend nor carry any voting right.
 
 2.2 1,400,000 OPCPS of Rs.1,400 lakhs are redeemable on 26.12.2015
 (date extended from 26.12.2010) with the option to convert before that
 the whole amount into equity shares at a rate to be determined and as
 permissble under the SEBI guidelines.They are neither entitled to
 dividend nor carry any voting right.
 
 3.1 Redemption premium of US$ 5.08 million equivalent to
 Rs.2294.92lakhs (Previous year:Rs.2294.92 lakhs) fully provided in
 share premium account on 2.5% FCCB of US $ 25.42 millions has been
 reinstated at Rs 2619.79 lakhs as at 31.03.12 and the resultant
 exchange fluctuation has been adjusted in the share premium account.
 
 (b) FCCB
 
 Company raised US$ 30 million through issue of 2.5% unsecured FCCBs on
 8.4.2006. FCCBs of US$ 4.58 million stood converted into equity shares
 in earlier years and the balance of US$ 25.42 million (equivalent to
 Rs.13,098.93 lakhs) became due for redemption on 08-04-2011 alongwith
 premium of 20.075% (US$ 5.08 million equivalent to Rs.2,619.79 lakhs).
 The Company could not redeem the same due to paucity of cash funds.
 Further, provision of Rs.924.78 lakhs towards yield protection on the
 unpaid amount is not considered necessary as this will not be payable
 once the restructuring is completed considering the changes in economic
 scenario.  In the meantime, the Bank of New York Mellon, Trustee has
 filed winding up petition before the Hon''ble High Court of Punjab and
 Haryana at Chandigarh on 29th September,2012, which is pending hearing
 /disposal. In the light of ongoing talks with some of the major bond
 holders and the merit of the petition,The Company does not anticipate
 any adverse outcome of the said litigation.
 
 4.1 Secured Working Capital Loans have been taken from consortium of
 scheduled banks and are secured by first charge ranking pari-passu
 inter-se amongst member banks on all the stocks of raw materials, stock
 in process, semi-finished and finished goods, stores and spares, bills
 receivable and books debts and all other movables current assets both
 present and future pertaining to Company''s Textile and Filament Units.
 These are also secured by second charge over the fixed assets
 pertaining to abovesaid Units and by personal guarantees of Chairman
 and Managing Director and Sh. M M Thapar. Working Capital Loans from
 Allahabad Bank are additionally secured by First Charge by way of an
 equitable mortgage over the land admeasuring around 9 acres and
 structurres thereon at Phagwara.
 
 4.2 Secured loans from other is secured against pledge of shares held
 under Current Investments of the company - Refer Note 15(a)i.
 
 5.1 There is no amount due and outstanding to be credited to Investors
 Education & Protection Fund.
 
 5.2 Includes for machinery and civil works Rs.4.53 lakhs (Previous
 Year : Rs. 36.40 lakhs)
 
 6.1 (a) The Company had revalued its certain freehold land held at
 Tehsil Phagwara on 01.04.2005 and the resultant revalued amount of Rs.
 10,417.70 lakhs was substituted for the historical cost in the gross
 block of land,net block as at 31.03.12 is Rs 10,417.70 lahks.
 
 (b) The Company had revalued its freehold land at Village Chohal,
 Hoshiarpur on 15.03.2010 and the resultant revalued amount of
 Rs.4,403.91 lakhs was substituted for the historical cost in the gross
 block of land,net block as at 31.3.12 is Rs 4359.66 lakhs.
 
 (c) The Company had revalued its certain freehold land at Sriganganagar
 on 30.4.85 and the resultant revalued amount of Rs.134.58 lakhs was
 substituted for the historical cost in the gross block of land, net
 block as at 31.3.12 is Rs. 50.19 lakhs.
 
 (d) During the year ended 31.3.2012, the company had adjusted Rs.44.09
 lakhs relating to Filament unit, Hoshiarpur from revaluation reserve
 against sale of land.
 
 (e) The company had revalued its building at Tehsil phagwara on 30.4.85
 and the resultant revalued amount of Rs.738.41 lakhs was added to the
 historical cost in the gross block of building of Rs.1077.32 lakhs.
 
 The aforesaid revaluations were done based on reports of external
 valuers at replacement / market value which resulted in net increase of
 Rs.15694.60 lakhs in the gross block of fixed assets.
 
 6.2 (a) Government grant of Rs. 416.54 lakhs received in 2008-09 was
 reduced against the cost of specific plant and machinery.
 
 (b) The Company has continued to adjust the foreign currency exchange
 variation on amounts borrowed(FCCBs) for acquisition of fixed assets to
 the carrying cost of fixed assets as the related borrowings originated
 in the year 2006, which is in accordance with provisions of the
 company''s Act 1956, read with notifications of the Government of India.
 This has resulted in increase in fixed assets by Rs.1624.33 lakhs
 (previous year decrease of Rs 111.85 lakhs), with corresponding
 increase in FCCBs borrowings during the year.
 
 6.3 Capital work in progress includes under noted pre-operative
 expenditure pending allocation on commencement of commercial
 production:
 
 7.1 In respect of the Company''s investment in JCT Electronics Ltd.:
 
 (a) The Company has given an undertaking to a financial institution and
 a bank of JCT Electronics Ltd. that the Company would not dispose off,
 pledge, charge, or create any lien, assign 39,33,000 equity shares
 having face value of Re.1 each.
 
 (b) The company has pledged 42,87,000 equity shares having a face value
 of Rs.1/- each with a financial institution for financial facility
 availed by JCT Electronics Ltd.
 
 7.2 Though Rs.597.60 lakhs was redeemable on 31.03.2012, however
 moratorium of 2 years has been given for repayment of whole amount
 which is now redeemable from 31.03.2014 onwards in two annual equal
 instalments.
 
 7.3 Though Rs.287.24 lakhs was redeemable on 31.03.2012, however a
 moratorium of 2 years has been given for repayment of whole amount
 which is,now redeemable from 31.03.2014 onwards in seven annual equal
 instalments.
 
 7.4 Provision for shortfall of Rs. 199.38 Lakhs (previous year Rs.
 127.09 lakhs) in the aggregate market value of quoted investments as
 compared to the book value is not considered necessary as in the view
 of the management, there is no permanent diminution in value of
 investment except to the extent for which adequate provision is already
 made in the accounts.
 
 8.1 Includes Rs.3.79 lakhs (Previous Year: Rs.3.80 lakhs) earmarked
 for redemption of preference shares and Rs.6.08 lakhs ( Previous Year:
 Rs 7.31 lakhs) against employees'' security deposits.
 
 8.2 Includes fixed deposits of Rs.75 lakhs maturing on 20.03.2013
 (Previous year: Rs.150 lakhs maturing on 20.03.2012)
 
 9.1 Others comprise receivables on account of export incentives, CER
 receivable, DEPB receivable, interest receivable, rent receivable,
 claims etc.
 
 10.1 No amount has been remitted during the year in foreign currency on
 account of dividend.
 
 10.2 Prior period expenses aggregating Rs. 52.75 lakhs (net debit) have
 been accounted for in the respective heads of account (Previous Year:
 15.30 lakhs (net debit.)
 
 11.  Additional notes to the financial statements for the year ended
 31st March, 2012.
 
 11.1 Contingent liabilities and commitments not provided for:
 
 
                                                          (Rs. In Lakhs)
 
        Particulars                            31.03.2012    31.03.2011
 
 (I)    Contingent Liabilities
 
    (a) Claims against the Company not 
        acknowledged as debts.                      19.38         18.47
 
 
    (b) Guarantees given by the bankers on 
        behalf of the Company                      205.28        229.21
 
 
    (c) Unutilised letter of credit                 24.80        166.31
  
 
    (d) Disputed liabilities not adjusted as 
        expenses in the Accounts for
        various ( years being in appeals 
        towards:
 
 
        - Sales tax                                735.02        454.46
 
 
        - Income tax                                83.04        120.87
 
 
        - Excise Duty                            2,422.80      2,363.51 
 
 
        - Stamp Duty                               187.72        187.72
 
 
        - Custom Duty                              186.05        186.05
 
 
        - Entry Tax                                351.82         16.37
 
 
        - Others                                   228.46        218.70
 
 
  
        - Total                                  4,194.91      3,547.68
 
 
 (II)   Commitments
 
     (a) Estimated amount of contracts 
         remaining to be executed on Capital       154.59        483.76 
        (Account and not provided for in 
         the accounts (net of advances) 
 
 
     (b) Export obligation against import 
         of machinery under EPCG Scheme         13,590.00      6,151.12
 
 
 
 
 
 11.2 Corporate guarantee of Rs. 3,580.00 lakhs given to a Financial
 Institution for term loan given to JCT Electronics Ltd. was invoked in
 earlier years. JCT Electronics Limited was making quarterly payments to
 Institution in terms of the Scheme sanctioned by the Board for
 Industrial and Financial Reconstruction (BIFR) till 31.3.2011.
 Thereafter the said institution with the consent of all the secured
 lenders whose interests were effected had filed a Modified Debt
 Restructuring Scheme (MDRS) before the BIFR covering the deferment of
 over-due quarterly instalments. The invocation of corporate guarantee
 is under abeyance till the approval of the MDRS.
 
 11.3 (a) The Company has not recorded cumulative deferred tax assets on
 account of timing differences as stipulated in Accounting Standard 22
 on Accounting for Taxes on Income issued by the Institute of
 Chartered Accountants of India in view of uncertainty of future taxable
 income.
 
 (b) In view of no taxable profits, no provision for Income Tax as per
 the provisions of the Income tax Act, 1961 is considered necessary.
 Adequate provision in respect of Wealth tax has been made in the
 Accounts.
 
 11.4 In view of accumulated losses:
 
 (i) No commission is payable to whole time directors.
 
 (ii) No capital redemption reserve has been created during the year.
 
 11.5 Leases:
 
 The Company has leased facilities under cancellable and non cancellable
 operating lease arrangements with a lease terms ranging from 1 to 3
 years, which are subject to renewal thereafter at mutual consent. The
 cancellable arrangements can be terminated by either party after giving
 due notice. The lease rent expense recognized during the year amounts
 to Rs. 117.64 lakhs (Previous Year: Rs. 84.73 Lakhs). The future lease
 payments in respect of non- cancellable operating leases for a period
 later than one year but not later than 5 years is Rs. 100.85 lakhs as
 at 31st March, 2012 (Previous year Rs.103.80 lakhs).
 
 11.6 Going Concern:
 
 Accumulated losses have resulted in substantial erosion in net worth of
 the Company. However, the financial statements have been prepared on a
 going concern basis on the strength of continued support of the
 promoters, bankers/ other lenders. Further, the restructuring of
 Company''s debts with its bankers has been approved under Corporate
 Debt Restructuring Cell (CDR) mechanism in its meeting held on
 12/09/2012 as per LOA dated 21/09/2012 which shall be implemented after
 completing all the conditions stipulated therein and the impact thereof
 as such shall be given in the accounts on its fulfilment of all the
 formalities/conditions.  The management, considering the future plans
 for operations and support of the promoters, lenders, business
 associates and workmen is hopeful of improved profitability leading to
 improvement in its financial position.
 
 11.7 Discontinued Operations:
 
 11.7.1 The operations at Unit-I of Sriganganagar Textile Mill were
 discontinued since 16.11.2009. The identified asset being land having
 net book value of Rs. 84.65 lakhs is carried at the net book value as
 expected net realizable value is higher, and is disclosed in Note
 No.20.1 as ''Assets held for disposal''. Advances of Rs. 421.50 lakhs
 received from the buyers of the asset are included in other Current
 Liabilities to be adjusted pending completion of legal formalities.
 
 11.7.2 During the year, operations at Unit-II of Sriganganagar Textile
 Mill were discontinued. The Company entered into an agreement with the
 workers unions pursuant to which full and final dues of some of the
 workers have been settled and paid off. Company also entered into
 agreement for disposal of the assets of the Unit except Land and
 Building. The identified fixed assets pending disposal having net book
 value of Rs. 216.59 lakhs and inventory of Rs.61.52 lakhs are carried
 at the net book value, expected net realizable value being higher, and
 are disclosed in Note No.20.1 and 16.2 respectively as ''Assets held
 for disposal''. Advances of Rs.180 lakhs received from a buyer of
 these assets are included in other Current Liabilities to be adjusted
 on sale of assets.
 
 11.7.3 Company has recognised loss of Rs. 142.89 lakhs as ''Loss from
 discontinuing Operations'' and disclosed it separately in the
 ''Statement of Profit & Loss''. In earlier years results of the Unit
 were included under ''Textile Segment''.
 
 11.8 During the year the Company sold its entire shareholding in its
 subsidiary company Rajdhani Trading Company Limited for a total
 consideration of Rs. 5.01 lakhs. Loss of Rs. 60.70 lakhs thereon has
 been shown separately in the ''Statement of Profit & Loss'' as an
 Exceptional Loss.
 
 11.9 Pursuant to the losses in the current year, accumulated losses as
 on 31.03.2012 exceed fifty percent of the peak net worth of the Company
 during preceding four financial years attracting provisions of ''Sick
 Industrial Companies (Special Provisions) Act, 1985''.  Accordingly,
 requisite steps are being taken as envisaged under the said Act
 including intimation to the ''Board for Industrial and Financial
 Reconstruction''.
 
 11.10 The letters have been sent to almost all the parties for
 confirmation of the balances under trade receivables, advances and
 trade payables, however, due to non receipt of the response from the
 parties, the balances are subject to confirmations/reconciliation in
 some cases. The impact, if any, subsequent to the
 confirmation/reconciliation will be taken in the year of confirmation/
 reconciliation.
 
 11.11 During the year, the company made an interest-free security
 deposit of Rs. 1150 lakhs to an associate company. The said deposit was
 made due to the non-fulfillment of a specific obligation stipulated in
 an agreement entered into by the Company in the year 2008 with the said
 Associate Company. Subsequent to the year end, the deposit has been
 repaid in full to the company by the said associate company. With
 respect to the applicability of the provisions of section 295 and/or
 372A of the Companies Act, 1956, the Company has been legally advised
 that considering the nature of transaction and the fact that the entire
 deposit has been repaid, any applicable enabling penal clauses of the
 aforesaid sections, if any, are unlikely to be material.
 
 11.12 In the opinion of the management, the value of assets other than
 fixed assets and non-current investments, on realization in the
 ordinary course of business, will not be less than the value at which
 these are stated in the Balance Sheet.
 
 Note: Figures in respect of Rajdhani Trading Company Limited have not
 been given since it ceased to be a wholly owned subsidiary company
 w.e.f.14th March 2012.
 
 11.13 Segment Reporting:
 
 (a) Identification of segments
 
 i) Primary Segments
 
 Business segment: The Company''s operating businesses are organized
 and managed separately according to the nature of products, with each
 segment representing a strategic business unit that offers different
 products. Two identified segments are Textiles and Filament yarn. The
 products considered as a part of Textile segment are cloth and yarn.
 The products considered as a part of Filament segment are nylon yarn
 and chips.
 
 ii) Secondary Segment
 
 Geographical Segment: The analysis of geographical segment is based on
 the geographical location of the customers.
 
 (b) Inter Divisional transfers of goods, as marketable products
 produced by separate divisions of the Company, for captive consumption
 are made as if sales were made to third parties at current market
 prices and are included in turnover.
 
 (c) Unallocable Items:
 
 Corporate income, corporate expenses, interest, capital and reserves
 are considered as part of unallocable items which are not identifiable
 to any business segment.
 
 The Company has common fixed assets for producing goods for domestic
 and overseas markets. Hence, separate figures for fixed
 assets/additions to fixed assets cannot be furnished.
 
 11.14 Employee Benefits:
 
 (a) Defined Benefit Plan
 
 Gratuity: Payable on separation as per the Employees Gratuity Act @ 15
 days pay for each completed year of service to eligible employees who
 render continuous service of 5 years or more.
 
 (b) Defined Contribution Scheme
 
 Company''s employees are covered by Provident Fund, Employees State
 Insurance and Superannuation scheme etc. to which the Company makes a
 defined contribution measured as a fixed percentage of salary. During
 the year amount of Rs.832.34 lakhs (Previous year Rs.728.68 lakhs) have
 been charged to the Statement of Profit & Loss towards contribution to
 the above schemes/benefits.
 
 (c) Other Long term Benefits
 
 Employees of the Company are entitled to accumulate their
 earned/privilege leave upto a maximum of 30 days for workers and 300
 days for other employees which is payable /encashable as per the policy
 of on their separation.
 
 The estimates of rate of escalation in salary considered in actuarial
 valuation take into account inflation, seniority, promotion and other
 relevant factors including supply and demand in the employment market.
 The above information is certified by the actuary.  The expected rate
 of return on plan assets is determined considering several applicable
 factors, mainly the composition of plan assets held, assessed risks,
 historical results of return on plan assets and the Company''s policy
 for plan assets management.
 
 12.  The financial statements for the year ended 31.03.2011 were
 prepared as per then applicable Schedule VI to the Companies Act, 1956.
 Consequent to the notification of Revised Schedule Vi under the
 Companies Act, 1956, the financial statements for the year ended
 31.03.12 are prepared as per Revised Schedule VI. Accordingly, the
 previous year figures have also been reclassified to conform to this
 year classification.