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Jyoti Structures
BSE: 513250|NSE: JYOTISTRUC|ISIN: INE197A01024|SECTOR: Power - Transmission/Equipment
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« Mar 13
Notes to Accounts Year End : Mar '14
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
      (under appeal)  
 
 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 account of depreciation and an equivalent amount has been withdrawn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)
 Employee Benefits:
 
 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
 the benefits.
 
 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
 the year
 
 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
 account.
 
 The amount of Rs. 374.20 Lacs (P.Y. Rs. 387.36 Lacs) in Employee Stock
 Option outstanding account, represents discounts on the options
 outstanding.
 
 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
 completed
 
 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
 the contract.
 
 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
 auditors.
 
 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
 statements.
 
 14. Previous year''s figures have been reworked, regrouped, rearranged
 and reclassified wherever necessary.
Source : Dion Global Solutions Limited
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