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. Nil (P.Y. Rs.
10.55 Lacs). Advances paid Rs. Nil (P.Y. Rs. 10.22 Lacs).
2. Contingent Liabilities not provided for:
Sr. Particulars 2012-13 2011-12
No Rs. in Lacs Rs. in Lacs
i) Outstanding of Bills Discounted 533.91 404.10
ii) Disputed liabilities in respect of
Income Tax, Sales Tax,
Central Excise and Service Tax
(under appeal) 637.47 567.13
iii) Civil Suits 107.87 100.21
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 100.98 Lacs (PY. AED 98.49 Lacs) equivalent to Rs.
1,498.52 Lacs (P.Y Rs. 1,385.92 Lacs) as on 31st March, 2013.
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account of depreciation and an equivalent amount has been withdrawn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 funds are operated by the Regional Provident Fund
Commissioner and the superannuation fund is administered by the
Trustees of the 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. These funds are recognised by the Income Tax
5. The Company has invested an amount of AED 129.30 Lacs (P.Y. AED
129.30 Lacs ) equivalent to Rs. 1,642.77 Lacs (P.Y. Rs. 1,642.77 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 2013 was AED 431.00
Lacs (P.Y. AED 431.00 Lacs). As against this capital, the total profit
earned during the year was AED 102.74 Lacs (P.Y. Profit AED 104.47
Lacs) and total accumulated losses as on 31st March 2013 were AED
129.20 Lacs (P.Y. AED 221.67 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 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 Rs. 500 Lacs (P.Y. Rs. 500
Lacs) in its Joint Venture Company namely, Lauren Jyoti Pvt Ltd. That
Company maintains its accounts on financial year basis.The total paid
up capital of the Company as on 31st March 2013 was Rs. 1,000 Lacs
(P.Y. Rs. 1,000 Lacs). The statutory audit is in progress hence as per
management presentation total loss incurred during the year by the
company was Rs. 2,162.52 Lacs (P.Y. Rs. 28.27 Lacs). However, based on
the orders in hand and the business outlook of the Joint Venture
Company, the management is of the opinion that there is no diminution
in value of the investment and therefore no provision for the same is
made during the year.
7. 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 57.48 Lacs
equivalent to Rs. 3,022.01 Lacs ( P.Y. USD 10.64 Lacs equivalent to
Rs.. 1,026.03 Lacs) during the year. Total accumulated losses as on
31st March 2013 are USD 68.12 Lacs (P.Y. USD 10.64 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.
8. During the year, the Company has capitalised interest of Rs. Nil
(P.Y. Rs. 14.32 Lacs) on borrowings made for acquisition of qualifying
9. Expenditure on account of premium of forward exchange contracts to
be recognised in the Statement of Profit and Loss of subsequent
accounting periods amounts to Rs. Nil (P.Y. Rs. 31.46 Lacs).
10. Related Party Disclosures:
Related party disclosures as required by Accounting Standard 18,
Related Party Disclosures. Relationships (during the year)
(a) Subsidiary of the Company: i) Jyoti Energy Ltd.
ii) JSL Corporate Services Ltd.
iii) Jyoti Structures Africa (Pty) Ltd.
iv) Jyoti International Inc.
v) Jyoti Americas LLC
vi) Jyoti Structures Canada Ltd.
vii) Jyoti Structures FZE
viii) Jyoti Structures Namibia (Pty) Ltd.
(b) Joint Venture:
i) Gulf Jyoti International LLC ii) Lauren Jyoti Pvt Ltd.
(c) Key Management Personnel: i) Mr. Prakash Thakur
ii) Mr. Santosh Nayak iii) Mr. K. R. Thakur
11. Employees Stock Option Scheme:
Under Jyoti Structures Limited Employees Stock Option Scheme 2005 (ESOS
2005) as amended, the Company is authorised to issue upto 5,00,000
(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. (83.99) Lacs (P.Y. Rs. 96.22 Lacs) debited/(credited)
to Employee Compensation Expense – ESOS account, represents the
proportionate cost for the year and has been charged to the revenue
The amount of Rs. 387.36 Lacs (P.Y. Rs. 524.82 Lacs) in Employee Stock
Option outstanding account, represents discounts on the options
12. The terms and conditions of various contracts being executed by
the Company provide for clauses in respect of liquidated damages
applicable for any delay in completion of the whole or a portion of the
contracts. In case of a few contracts, where there have been such
delays in completion of the contracts, the Company is currently
negotiating with its customers for an extention of time for the delays
attributable to the customers to complete the contracts. It is
currently uncertain as to whether the customers would grant the
required extension of time and hence, the quantum of liquidated damages
is also uncertain. As per the past experience, where the delays are due
to reasons beyond the control of the Company, the approvals for time
extensions are normally received from customers, which sometimes take
more than reasonable time. As such, no provision on this account has
been made in the books of account.
13. 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
14. As the Company''s principal business falls within the single segment
i.e. power transmission and distribution wherein it manufactures, deals
in various components/equipments and constructs infrastructure related
to power transmission, there are no separate reportable or identifiable
business segments as defined by Accounting Standard-17 Segment
Reporting. The information regarding Geographical Segment is provided
under Notes to Consolidated Financial Statements.
15. 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
16. Previous year''s figures have been reworked, regrouped, rearranged
and reclassified wherever necessary.