Jindal Poly Films

31.03.09       31.03.08
                                                     Rs.            Rs.
 
 1.     Estimated amount of contracts remaining 
 to be executed on capital account           143,035,496    239,329,374
 and not provided for (net of advances)
 
 2.     Contingent Liabilities:
 
 a. Bank Guarantees                           90,689,607     73,851,107
 b. Outstanding Letters of Credit 
 (Including Capital Goods)                  1222,201,138   2072,793,360
 c. Claims against Company, 
 not acknowledged as debts                    94,931,000     67,337,000
 d. Uncalled liability of 
 partly paid shares                         1284,000,000     90,000,000
 e. Demands raised by authorities against 
 which, Company has filed appeals: -
 
 i)   Income Tax                              445,38,332     508,36,173
 ii)  Excise Duties                           274,61,000     273,02,000 
 iii) Sales Tax                               224,93,097      82,30,691    
 iv)  Custom Duties                           388,22,000     317,86,000
 
 3.  Computation of Net Profit under section 198 of the Companies Act,
 1956 for the purpose of remuneration payable to Whole Time Directors
 has not been enumerated as no commission is payable to them.
 
 4.  Term Loan installments due within next one year is amounting to Rs
 3812.99 Lacs. (Rs 3111.21 lacs).
 
 5.  Pursuant to the adoption of Accounting Standards as prescribed by
 Companies (Accounting Standards) Rules,2006 issued by Ministry of
 Corporate Affairs vide notificaton no.G.S.R.739 (E) dated December 7,
 2006 and as required by Accounting Standard-11 –
 
 (a) Loss of Rs 6237.83 lacs on translation/settlement of foreign
 currency monetary items including borrowings have been shown as
 exceptional items in the profit and loss account.
 
 (b) Loss on account of hedging against export exposures amounting to Rs
 1400.55 lacs have been accounted under the head other expenses in the
 profit & loss account.
 
 6.  A sum of Rs. 149,72,861 being the difference between domestic vs.
 imported material prices prevailing at the end of the period ended 31st
 March 2009 on account of advance licences excess utilized for which
 exports are yet to be made, whereas, in previous year Rs.1,85,69,017 on
 account of advance licence entitlement which remain unutilized on
 account of exports already made, has been adjusted in the cost of raw
 material.
 
 Export Incentive under Duty Entitlement Pass Book Scheme (DEPB) amount
 to Rs. 150,031,046 (Previous year Rs.  8,70,57,323) has been credited
 in the account of raw material.
 
 7.  Advance receivable in cash or in kind includes Rs.2,82,54,173
 (Previous year Rs. 2,82,54,173) being the amount of custom duty
 deposited against import of capital goods assessed under provisional
 assessments in earlier year.
 
 8.  600 shares of Hindustan Thermal Power Generation Ltd. (Formerly
 Hindustan Polyester Ltd.) of which the Company is (a) beneficial owner
 are held by certain individuals in fiduciary capacity.
 
 6. shares of Jindal Packaging Ltd. of which the Company is beneficial
 owner are held by certain individuals in fiduciary capacity.
 
 (b) Jindal Packaging Films Limited has became subsidiary of the Company
 w.e.f. 18.06.2008.
 
 (c) Jindal India Powertech Limited became the associate of the Company
 w.e.f. 30.05.2008.
 
 7.  Certain old balances of sundry debtors and sundry creditors are
 subject to reconciliation and confirmation.
 
 8.  Under the Packaging Scheme of Incentive approved by the Government
 of Maharashtra, the Company is entitled to industrial promotion subsidy
 to the extent of 100% of the fixed capital investment or the extent of
 taxes paid to the State Government within a period of 7 years,
 whichever is lower. During the year, the Company is entitled for an
 amount of Rs.8,91,68,202,under that scheme and the same has been shown
 as income, under the head of other income.
 
 9.  In the opinion of the Board and to the best of their knowledge and
 belief, the realizable value of current assets, loans and advances in
 the ordinary course of business would not be less than the amount at
 which they are stated in the Balance Sheet.
 
 10.  Stores and spares consumed and salaries and wages incurred during
 the year for repair and maintenance of plant & machinery and sheds &
 building, have been charged to the former accounts wherever separation
 is not ascertainable.
 
 11. The Company has not received from suppliers regarding their status
 under the Micro, Small and Medium Enterprises Development Act, 2006 and
 hence disclosures, if any, relating to amounts unpaid as at the year
 end together with interest paid/payable as required under the said Act
 have not been given.
 
 12. The Export obligation undertaken by the company for import of
 capital equipments under EPCG/100% EOU scheme of the Central government
 at the concessional or zero rate of custom duty are in the opinion of
 the management expected to be fulfilled within their respective due
 dates/extended due dates.
 
 13.  During the year one 100% EOU unit of the company at Nasik was
 debonded and allowed to operate as DTA unit under the EPCG scheme on
 fulfillment of the prescribed conditions. The consequent financial
 implications have been duly accounted for.
 
 14. a) As per Accounting Standard 28 issued by ICAI, impairment loss on
 Assets at Khanvel (Being one of the unit Manufacturing PET Films of the
 company) was provided by the company during the year ended 31st March
 2003. Now in the opinion of the management, there is no further loss on
 account of impairment of assets, lying at Khanvel in which operations
 have been suspended.
 
 b) Operations in respect of Companys units at Gulaothi were lying
 suspended. However carrying cost of these units are reflected at
 historical cost. The management is of view that there is no loss on
 account of impairment of assets as required by AS 28 issued by ICAI as
 the realisable value of these assets are higher than the carrying cost.
 
 15.  Previous years figures have been regrouped and/or rearranged
 wherever required.