1. Outstanding Contracts - Capital Account:
Estimated amount of contracts remaining to be executed on capital
account and not provided for (Net of advances) are Rs. 11.28 Lacs (P.Y.
Rs. Nil). Advances paid Rs. 24.32 Lacs (P.Y. Rs. Nil).
2. Contingent Liabilities not provided for:
Sr 2013-14 2012-13
No Particulars Rs. in Lacs Rs. in Lacs
i) Outstanding of Bills Discounted Nil 533,91
ii) Disputed liabilities in respect
of Income Tax, Sales Tax, Central
Excise and Service Tax 802.51 637.46
iii) Civil Suits 107.87 107.87
iv) Corporate Guarantees 68,918.04 46,247.05
The Company has given a letter of comfort for general banking
facilities provided by National Bank of Abu Dhabi to Gulf Jyoti
International LLC. The total loan outstanding from the bank to the said
Company is AED Nil (PY AED 100.97 Lacs) equivalent to Rs. Nil (PY Rs.
1,498.52 Lacs) as on 31st March, 2014.
3. The gross block of fixed asset includes Rs. 83.62 Lacs (P.Y. Rs.
83.62 Lacs) on account of revaluation of fixed assets carried out by
the Company in the year 1993-94. Consequent to the said revaluation,
there is an additional charge of Rs. 2.42 Lacs (P.Y. Rs. 2.42 Lacs) on
account of depreciation and an equivalent amount has been withdrawn
from the revaluation reserve and credited to Statement of Profit and
Loss. This has no impact on the profit for the year
4. Disclosure as required by Accounting Standard 15 (revised 2005)
Defined Contribution Plans:
a) Provident Fund
b) Superannuation Fund
The provident fund is operated by the Regional Provident Fund
Commissioner and the superannuation fund is administered by the
Trustees of Jyoti Structures Limited Officers Superannuation Scheme.
Under the schemes, the Company is required to contribute a specified
percentage of payroll cost to the retirement benefit schemes to fund
5. The Company has invested an amount of AED 129.30 Lacs (P.Y. AED
129.30 Lacs) equivalent to Rs. 1642.77 Lacs (P.Y. Rs. 1642.77 Lacs) in
its Joint Venture Company namely, Gulf Jyoti International LLC. That
Company maintains its accounts on calendar year basis. The total paid
up capital of the Company as on 31st March 2014 was AED 431.00 Lacs
(P.Y. AED 431.00 Lacs). As against this capital, the total profit
earned during the year was AED 36.97 Lacs (P.Y. AED 102.74 Lacs) and
total accumulated losses as on 31st March 2014 were AED 92.23 Lacs
(P.Y. AED 129.20 Lacs). However, based on the orders in hand and the
business outlook of the joint venture Company, the management is of the
opinion that these accumulated losses are temporary in nature and will
be recovered in the next couple of years. Due to this, the management
believes that there is no other than temporary diminution in value of
the investment and therefore no provision for the same is made during
6. The company has invested an amount of USD 129.90 Lacs equivalent to
Rs. 6,000.65 Lacs in its subsidiary company namely, Jyoti International
Inc. That Company maintains its accounts on financial year basis. The
company has incurred total loss of USD 133.01 Lacs equivalent to Rs.
7,579.41 Lacs ( P.Y. Loss of USD 57.48 Lacs equivalent to Rs. 3,022.01
Lacs) during the year. Total accumulated losses as on 31st March 2014
are USD 201.14 Lacs (P.Y. USD 68.12 Lacs ). However, based on the
orders in hand and the business outlook of the company, the management
is of the opinion that these accumulated losses are temporary in nature
and will be recovered in the next few years. Due to this, the
management believes that there is no other than temporary diminution in
value of the investment in that company and therefore no provision for
the same is made during the year.
7. Lauren Jyoti Private Ltd. is a joint venture company (JVC) between
Lauren Engineers Constructors Inc. (Lauren) and Jyoti Structures
Limited (JSL) with equity participation of Rs. 500 Lacs by each partner
and with technical assistance, support and know-how to be provided by
Lauren and pre-qualification credentials by the Company for EPC
Contracts. Due to differences and disputes arising between the partners
during the execution of 50 MW Solar Thermal Power Plant EPC Contract
awarded by Godavari Green Energy Limited, the financial statements of
JVC have not been adopted. Based on the advice, the Company is in the
process of referring the dispute to arbitration in accordance with the
Joint Venture Agreement.
8. Foreign Currency exposures that are not hedged by derivative
instruments as on 31st March, 2014 amount to Rs. 47,496.99 Lacs.
9. Employees Stock Option Scheme:
Under Jyoti Structures Limited Employees Stock Option Scheme 2005 (ESOS
2005) as amended, the Company is authorised to issue upto 500,000 (Five
Lacs) stock options convertible into 25,00,000 (Twenty Five Lacs)
Equity Shares of Rs. 2/- each to employees. A Compensation Committee
has been constituted by the Board of Directors of the Company to
administer the Scheme.
Each option is to be converted into 5 equity shares of Rs. 2/- each at
an exercise price of Rs. 17/- per equity Share (being the exercise
price adjusted after split of face value from Rs. 10/- to Rs. 2/-).
Under the scheme, 30% of the options vest at the end of one year from
the date of grant of options, 30% at the end of second year from the
date of grant of options and the balance 40% at the end of third year
from the date of grant of options.
The amount of Rs. 56.15 Lacs [P.Y. (Rs. 83.99 Lacs)] debited/(credited)
to Employee Compensation Expense - ESOS account, represents the
proportionate cost for the year and has been credited to the revenue
The amount of Rs. 374.20 Lacs (P.Y. Rs. 387.36 Lacs) in Employee Stock
Option outstanding account, represents discounts on the options
10. Engineering Procurement Construction (EPC) Contracts provide for
levy of liquated damages (LD) to the extent of 10% of the contract
value for delay in execution of the contracts. As a trade practice, on
completion of the contracts such delay is generally condoned by
granting time extension. It is not possible to ascertain the quantum of
the LD for the projects where execution is delayed, as the proposals
for time extension are pending with the customers and in the past, time
extensions have been granted in similar circumstances.
11. Power Grid Corporation of India Ltd. had awarded
Tangla-Kokrajhar-Barabisa transmission line contract in Assam on
turnkey basis for total value of Rs. 330 crores consisting of Rs. 200
crores supply portion and Rs. 130 crores construction portion. The
execution of the contract was delayed due to local agitation and ethnic
strife, reasons which were beyond control of the Company.
Power Grid Corporation of India Ltd. terminated the contract on 10th
April 2014 and encashed the guarantees including performance guarantee
of Rs. 3,302.68 Lacs. Until termination of contract, the Company had
a) Supply of towers amounting to Rs. 185 crores and balance supply of
towers of Rs. 15 crores are under dispatch;
b) Construction work amounting to Rs. 69 crores.
Though the events have occurred after the balance sheet date and the
liability is disputed, the Company has provided for Rs. 3,302.68 Lacs
in the Statement of Profit and Loss for the current year. The Company
has been advised to initiate dispute resolution mechanism provided in
12. Trade Payable includes dues to micro and small enterprises to whom
the Company owes amounts outstanding for more than 45 days. The
information regarding micro and small enterprises has been determined
to the extent such parties have been identified on the basis of
information available with the Company This has been relied upon by the
13. The Ministry of Corporate Affairs, Government of India vide its
notification no. 2/2011 dated 8th Feb, 2011 has granted a general
exemption from compliance with section 212 of the Companies Act, 1956
subject to fulfillment of conditions stipulated in the circular. The
Company has satisfied the conditions stipulated in the circular and
hence is entitled for the exemption. Necessary information relating to
the subsidiaries have been included in the consolidated financial
14. Previous year''s figures have been reworked, regrouped, rearranged
and reclassified wherever necessary.