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Jaiprakash Associates

BSE: 532532|NSE: JPASSOCIAT|ISIN: INE455F01025|SECTOR: Infrastructure - General
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Notes to Accounts Year End : Mar '18

NOTE No. “1”

CORPORATE INFORMATION

Jaiprakash Associates Limited is a Public Limited Company domiciled in India with its registered office located at Sector-128, Noida-201304 (U.P). The shares of the Company are listed on the National Stock Exchange and the Bombay Stock Exchange. The company is mainly engaged in the business of Engineering & Construction, Manufacturing of Cement, Real Estate development, Hotel, Sports etc. The Company’s financial statements are approved for issue in accordance with a resolution of the Directors on 19th May, 2018.

“2.1” Current Investments: 6,81,03,256 Equity Shares of Jaypee Infratech Limited are held with State Bank of India [Lender] as at 31st March, 2018 on invocation of shares pledged. The same are being classified as Current Investments.

“3.1” Term Deposits with Banks with Maturity more than twelve months [non current] includes Rs.2474 Lakhs [31st March, 2017 Rs.1698 Lakhs] pledged as Guarantees / Margin Money with Banks and Others.

“3.2” Unbilled Revenue represents revenue recognised based on percentage of completion method over and above the amount due from the customers as per the agreed payment plans.

“4.1” Term Deposits with Original Maturity less than three months includes Rs.2568 Lakhs [31st March, 2017 Rs.2429 Lakhs] pledged as Guarantees / Margin Money with Banks and Others.

“4.2” Balances with Banks in Current Account in Foreign Currency includes Iraqi Dinars 27,377 Million equivalent to Rs.10 Lakhs which are not available for use by the Company.

“5.1” Term Deposits with Maturity less than twelve months includes Rs.3047 Lakhs [31st March, 2017 Rs.2752 Lakhs] pledged as Guarantees / Margin Money pledged with Banks and Others.

“5.2” Term Deposits with Maturity less than twelve months includes ‘ Nil [31st March, 2017 Nil] earmarked for repayment of Public Deposits.

“5.3” Term Deposits excludes deposits with original maturity of less than three months.

6.1 Issued, Subscribed and Paid-up Share Capital in number comprises of

Shares for consideration in cash 2,02,19,850 Equity Shares allotted under “Jaypee Employees Stock Purchase Scheme 2002”;

1.25.00.000 Equity Shares allotted under “Jaypee Employees Stock Purchase Scheme 2009”; 20,16,23,717 Equity Shares allotted for cash on conversion of Foreign Currency Convertible Bonds;

1.00.00.000 Equity Shares allotted for cash to Promoters on Preferential Basis;

6,42,04,810 Equity Shares allotted through Qualified Institutional Placement as on 06.02.2013 and 21,33,73,416 Equity Shares allotted through Qualified Institutional Placement as on 08.07.2014.

Shares for consideration other than cash

86,08,65,055 Equity Shares allotted in terms of the Scheme of Amalgamation effective from 11.03.2004; 12,43,78,825 Equity Shares allotted in terms of Scheme of Amalgamation effective from 22.08.2006; 21,80,10,985 Equity Shares allotted pursuant to Scheme of Amalgamation effective from 27.05.2009 and 70,72,80,317 Equity Shares allotted as Bonus Shares effective from 19.12.2009.

6.2 Terms / Rights

The Company has issued only one class of equity shares having a par value of Rs.2/- per share. Each holder of equity share is entitled to one vote per share. Each share is entitled to equal dividend declared by the Company and approved by the Share holders of the Company.

In the event of liquidation, each share carries equal rights and will be entitled to receive equal amount per share out of the remaining amount available with the Company after making preferential payments.

“3.1” Nature and purpose of Reserves

Equity component of compound financial instruments

This is the equity portion of the issued foreign currency convertible bonds. The liability component is reflected in financial liabilities.

Capital Reserve:

During amalgamation, the excess of net assets taken, over the cost of consideration paid is treated as capital reserve. It also include capital profits on foreign currency convertible bonds buyback, on demerger and on forfeiture of advance amount of share warrants.

General Reserve:

The Company has transferred a portion of the net profit of the Company before declaring dividend to general reserve pursuant to the earlier provisions of Companies Act 1956. Mandatory transfer to general reserve is not required under the Companies Act 2013. Also General Reserve includes reserve transfer on amalgamation/ demerger scheme in accordance with the Scheme sanctioned by Hon’ble High Courts/National Company Law Tribunal.

Securities Premium Reserve:

The amount received in excess of face value of the equity shares is recognised in Securities Premium Reserve.

Capital Redemption Reserve:

The Company has recognised Capital Redemption Reserve on buyback of equity shares from its retained earnings. The amount in Capital Redemption Reserve is equal to nominal amount of the equity shares bought back.

Debenture Redemption Reserve:

The Company has recognised Debenture Redemption Reserve [DRR] as per the provisions of the Companies Act 1956/Companies Act, 2013. As per the provision, the Company shall credit adequate amount to DRR from its profits every year until such debentures are redeemed. The amount credited to DRR shall not be utilised by the Company except for the redemption of debentures.

Share Forfeited Account

Share forfeited account represents the amount of shares forfeited due to cancellation of partly paid shares. The forfeited share can be re-issued at discount or at premium.

Retained Earnings:

Retained earnings are the profit or loss that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.

[A] NON CURRENT BORROWINGS

“4.1” The Lenders in the Joint Lender Forum has approved the Scheme of Restructuring/Reorganization/Realignment of Debt in accordance of the RBI guidelines during FY 2017-18. The Lenders has revised the terms of repayment and interest through the scheme besides other things mentioned in the scheme of restructuring of debt. The specific terms of interest and repayment and security created / yet to be created as per scheme are given in the following Notes.

Total Value of Debentures as at 31.03.2017 includes Rs.2368 lakhs as prepaid financing charges.

[b] Non Convertible Secured Debentures mentioned in Note 14.2[a] above are redeemable at value equal to the Face Value. Interest accrued on Non Convertible Secured Debentures is at the simple rate of 9.5% per annum.

[c] As per the Scheme of Restructuring/ Reorganisation/ Reallignment of debt, the outstanding value of debentures are considered to be transferred to Jaypee Infrastructure Development Ltd (JIDL) on sanction of the scheme of arrangement between the company and JIDL by Hon’ble National Company Law Tribunal, Allahabad.

[d] Security :Non-Convertible Debentures [NCDs] mentioned at Sl No.14.2[a] above, together with interest, liquidated damages, remuneration payable to Trustees, and other monies due in respect thereof are secured as under :

Further security to be created against Non-Convertible Debentures may be reffered at Note No 14.3 [k] below. The above security shall get released on transfer of outstanding amounts to Jaypee Infrastructure Development Limited on sanction of Scheme by the NCLT, Allahabad.

*Total amount outstanding as at 31.03.2018 includes Rs.6 lakhs (Previous year Rs.19174 lakhs) as prepaid financing charges.

[b] Outstanding Term Loans as stated in Note no 14.3 [a] (i) 1 and 14.3 [a] (i) 9 above excluding Core Area Project Loan together with all interest, liquidated damages, premia on pre-payment or on redemption, costs, expenses and other monies, stipulated in the Master Restructuring Agreement (MRA) are secured by way of First Charge ranking pari-pasu over movable and immovable fixed assets pertaining to Cement Division (excluding Jaypee Super Cement Plant, Mandla (North) coal block), Power division, Hotel Division (consisting of 5 Five Star Hotels) and Engineering & Construction Division [both present and future] of the Company and on land admeasuring 166.96 acres situated at village Tappal, Kansera & Jahengarh, Aligarh, Uttar Pradesh and land admeasuring 167.23 acres situated at village Chagan and Chhalesar, Agra, Uttar Pradesh both land belonging to Jaypee Infratech Limited (JIL), a subsidiary of the Company.

In addition to the above, the outstanding Term Loans specified as Shahabad Project Loan and are included in Note no. 14.3 [a] (i) 1 above are further secured by first charge ranking pari-passu among Shahabad Project Lenders over movable and immovable fixed assets of Shahabad cement plant [both present and future] situated at Shahabad & Bankur Village, Gulbarga District, Karnataka of Jaypee Cement Corporation Limited, a wholly owned subsidiary of the Company.

[c] Outstanding Term Loans specified as term loans (existing), Funded Interest Term Loan & Working Capital Term Loans (excluding loan specified as Shahabad Project Loan and Core area project loan) included in Note no.

4.2 [a] (i) 1 and 14.3 [a] (i) 9 above together with all interest, liquidated damages, premia on pre-payment or on redemption, costs, expenses and other monies, stipulated in the Master Restructuring Agreement (MRA) are also secured by way of Second Charge ranking pari-passu over movable and immovable fixed assets of Shahabad cement plant [both present and future] situated at Shahabad & Bankur Village, Gulbarga District, Karnataka of Jaypee Cement Corporation Limited, a wholly owned subsidiary of the Company.

[d] Outstanding Term Loans specified as Hold Back Loans stated at Note no. 14.3 [a] (i)10 above together with all interest, liquidated damages, premia on pre-payment or on redemption, costs, expenses and other monies, stipulated in the Master Restructuring Agreement (MRA) are secured by First Charge ranking pari-pasu over movable and immovable fixed assets of Jaypee Super Cement Plant of the company [both present and future] situated at Uttar Pradesh. The Loan shall be repaid post transfer of Jaypee Super Plant to UltraTech Cement Limited (UTCL), the transfer of which is subject to the satisfaction of conditions precedent as mentioned in the sanctioned scheme between the company and UTCL for transfer of identified Cement Plants. In event of conditions precedent could not be complied with within stipulated period or not waiver of conditions by UTCL then the loan shall be repaid over the next 15 years through equal quarterly instalments.

[e] Outstanding Term Loans specified as Core Area project loan included at Note no. 14.3 [a] (i) 1 above along with BG facility of Rs.100 Crs. sanctioned by Punjab & Sind Bank together with all interest, liquidated damages, premia on pre-payment or on redemption, costs, expenses and other monies, stipulated in the Master Restructuring Agreement (MRA) are secured by way of First Charge ranking pari-pasu on all immovable and movable fixed assets pertaining to the core area sports infrastructure project [both present and future] and second pari-passu charge on all the current assets including receivables pertaining to the aforesaid sports infrastructure project.

[f] Loans given by Lenders are further secured by exclusive security given to specific Lenders. Details of exclusive security as per Master Restructuring Agreement/ Specific agreement is as per the following:

(i) State Bank of India

(1) Pledge of 6,81,03,256 Equity Shares of Jaypee Infratech Limited held by the Company (since been invoked)

(2) First charge on 90 acres of land situated at Agra belonging to Jaypee Infratech Limited subsidiary of the Company.

(3) First Charge on 2.56 acres of Hotel & Commercial Land in Village - Wazidpur, Sector -129, Noida and First Charge over 3.78 acres of Commercial Land situated at Sector - 128, Noida, The Company has entered into an “Agreement to Sell” with Jaypee Infratech Limited and entire sale consideration for the said land has been paid.

(4) pari passu charge over 37.763 hectare Land Situated in Chindwara, M.P., and assets related to Mandla (North) Coal Mine.

(ii) ICICI Bank Limited

(1) First charge on all immovable properties admeasuring 100 acres of Land of Jaypee Infratech Ltd., situated at Village - Tappal, Tehsil - Khair, Distt. - Aligarh, Uttar Pradesh together with all buildings and structures thereto and all Plant & Machinery attached to the earth or permanently fastened to anything attached to the earth, both present and future.

(2) First charge over land admeasuring 9.8077 acres situated at Village Aurangpur, U.P., 148.3662 acres situated at Village Jaganpur, Afjalpur, UP, 151.006 acres situated at village Jirkpur, Tehsil Khair Dist. Aligarh, UP, all belonging to Jaypee Infratech Limited.

(3) pledge of 18,93,16,882 equity shares of the Company held in various Trusts, Company being the sole beneficiary of the trusts.

(4) pledge of 7,50,000 11% Cumulative Preference Shares of Himalyan Expressway Limited held by the Company.

(5) pledge of 1,02,12,000 12% Cumulative Preference Shares of Jaypee Agra Vikas Limited held by the Company.

(iii) Standard Chartered Bank

(1) First charge ranking pari passu by way of equitable mortgage by deposit of title deed over the land admeasuring 355.84 acres at Jaypee Greens Golf Course, Greater Noida, Uttar Pradesh.

(2) First charge ranking pari passu by way of equitable mortgage over land of Jaypee Infratech Ltd. admeasuring 42.6932 acres (residential 25.0040 acres and commercial 17.6892 acres) situated at village Sultanpur, Noida, Uttar Pradesh and Village Wazidpur, Noida, Uttar Pradesh. Out of the said 42.6932 acres of land, the Company has entered into an “Agreement to Sell” with Jaypee Infratech Limited on 15.12.2009 for purchase of 17.6892 acres of commercial land and entire sale consideration has been paid.

(3) Pledge of 9,41,25,000 Equity Share of Jaypee Cement Corporation Limited, held by the Company.

(4) First charge over 30.33 acres of Commercial Land situated at Jaypee Sports City near F1 Stadium, SDZ, Sector 25, Gautam Budh Nagar, Uttar Pradesh.

(iv) Yes Bank Limited

(1) First charge over 9.13 acres of Commercial Land situated at Jaypee Sports City near F1 Stadium, SDZ, Sector 25, Gautam Budh Nagar, Uttar Pradesh.

(v) The Karur Vysya Bank Limited

(1) First charge over 2.53 acres of Commercial Land situated at Jaypee Sports City near F1 Stadium, SDZ, Sector 25, Gautam Budh Nagar, Uttar Pradesh.

(vi) The South Indian Bank Limited

(1) First charge over 6.19 acres of Commercial Land situated at Jaypee Sports City near F1 Stadium, SDZ, Sector 25, Gautam Budh Nagar, Uttar Pradesh.

[g] Term Loan sanctioned by HDFC Limited stated at sl no 14.3 [a] (i) 2 above is secured against first & exclusive charge by way of Registered Mortgage over (a) Leasehold property admeasuring project land of 14.20 acres at Jaypee Greens which is part and parcel of 452.26 acres of the integrated Township Jaypee Greens Greater Noida, U.P. alongwith construction thereon both present and future (b) Leasehold property admeasuring 38.20 acres at Noida, U.P. designated for the construction of Kalyspo Court 1-10 (B-1), Kalyspo Court 11,12,14,15,16 (B-3), imperial Court 1-3 (B-2) Pelican (PD-1 & PD-2) in the integrated Township in the name and style of Wish Town, Noida, U.P. The said land is registered in the name of Jaypee Infratech Limited and entire sale consideration has been paid by the Company to Jaypee Infratech Limited. and (c) First Charge on Project Land/ FSI of 11,01,954 Sq. feet of B 10, Suncourt A & Town Centre Residential in Jaypee Greens, Greater Noida with construction thereon, present and future.

[h] Term Loans sanctioned by SREI Equipment Finance Limited together with all interest, liquidated damages, premia on prepayment or on redemption, costs, expenses and other monies, stipulated in the Loan Agreements stated at Note no 14.3 [a] (i) 5 above is secured by Subservient Charge on current assets of the company excluding Real Estate Division, extension of pledge of 5.51 Cr Equity shares of Jaiprakash Agri Initiatives Company Limited held by Jaypee Cement Coproration Limited. Term Loans sanctioned by SREI Equipment Finance Limited & TATA Motors Finance Ltd. stated at Note no 14.3 [a] (i) 6 to 8 above together with all interest, liquidated damages, premia on prepayment or on redemption, costs, expenses and other monies, stipulated in the Loan Agreements secured by way of exclusive charge over certain Equipments of the Company.

[i] Outstanding Loan of AKA Export Finance Bank stated at Sl.No. 14.3[a] [i] 4 above was secured on specific assets transferred to UTCL. In replacement of this security, certain land of the Company has been offered to secure the said outstanding facility.

[j] Loans stated at sl no 14.3 [a] (i) 11 above includes loans to be transferred to Jaypee Infrastructure Development Limited (JIDL) as per the scheme of arrangement between the company and JIDL filed with Hon’ble National Company Law Tribunal, Allahabad and sanction of the scheme is awaited. It also includes loans which has been considered to be settled against the identified real estate inventory of the company.

[k] Outstanding amount of Term Loans included in Note No. 14.3 [a] (i) 11 above and non convertible debentures at sl no 14.2 [i] (a) which are proposed to be transferred as part of SDZ Real Estate undertaking are to be secured by way of 1st pari-passu charge on identified land of Non-Core Area and Project Assets situated at Jaypee Sports City near F-1 Stadium, Special Development Zone [SDZ], Sector-25, Gautam Budh Nagar, Uttar Pradesh being part of SDZ Real Estate undertaking to be transferred as specified in Scheme of Arrangement between JAL and JIDL filed with Hon’ble National Company Law Tribunal, Allahabad and sanction of scheme is awaited save and except exclusive security over certain assets created in favour of specific lenders as given below:

(i) Canara Bank

(1) First charge over 25.007 acres of Commercial Land situated at Jaypee Sports City near F1 Stadium, SDZ, Sector 25, Gautam Budh Nagar, Uttar Pradesh.

(ii) State Bank of India

(1) First charge over 22.2078 acres of Commercial Land situated at Jaypee Sports City near F1 Stadium, SDZ, Sector 25, Gautam Budh Nagar, Uttar Pradesh.

(2) First charge over 57.13 acres of Commercial Land situated at Jaypee Sports City near F1 Stadium, SDZ, Sector 25, Gautam Budh Nagar, Uttar Pradesh.

(iii) IFCI Limited

(1) First charge over 5.48 acres of Commercial Land situated at Jaypee Sports City near F1 Stadium, SDZ, Sector 25, Gautam Budh Nagar, Uttar Pradesh.

(iv) United Bank of India

(1) First charge over 13.00 acres of Commercial Land situated at Jaypee Sports City near F1 Stadium, SDZ, Sector 25, Gautam Budh Nagar, Uttar Pradesh.

(v) Allahabad Bank

(1) First charge over 8.70 acres of Commercial Land situated at Jaypee Sports City near F1 Stadium, SDZ, Sector 25, Gautam Budh Nagar, Uttar Pradesh.

[l] Land admeasuring 588.42 acres of the Company (forming part of Non-Core Area ) at Jaypee Sports City near F-1 Stadium, Special Development Zone [SDZ], Sector-25, Gautam Budh Nagar, Uttar Pradesh and all assets of the company being part of SDZ real estate undertaking proposed to be transferred to JIDL as per scheme of arrangement between the company and JIDL. The charge on this land shall be vacated and new charge in JIDL shall be created in accordance with the Note no (j) above.

[m] Security includes security created / yet to be created and to be modified in accordance with the scheme of Restructuring/Reorganization/Realignment of debt and other agreement with the Lenders as at 31.03.2018.

[n] Outstanding amount of long term debts from Banks and Financial Institutions included in current maturities of long term debts [Refer Note No 15 - Other Current Financial Liabilities] as at 31.03.2018 includes principal overdues amounting to Rs.1250 Lakhs and interest accrued and due on borrowings amounting to Rs.3309 Lakhs, both principal and interest overdues pertain to the F.Y 2017-18.

[o] Loan outstanding as on Balance sheet date are after considering loans which are partly / fully paid before their respective due dates.

“4.3” Loans from State Government:

[a] I nterest Free Loans granted by U.P.Financial Corporation (UPFC) under Audyogik Nivesh Protshahan Yojna Scheme at Grinding Unit in Tanda (U.P.) are secured by way of First Charge on the Fixed Assets of the above said Unit of the Company and partly against bank guarantee. The same is repayable on or before completion of 10 years from the day on which it is received. Period of repayment has commenced from F.Y. 2016-17.

[b] I nterest Free Loans granted by Pradeshiya Industrial & Investment Corporation Limited at Grinding Unit in Sikandrabad (U.P.) is secured against Bank Guarantee. The same is repayable on or before completion of 10 years from the day on which it is received. Repayment will commence from F.Y. 2022-23.

Post transfer of cement plants, the above loans were fully repaid by the company.

“4.4” Details of Foreign Currency Convertible Bonds (Unsecured) at Note No.14[II]A are given as under :

[a] The Company has issued Foreign Currency Convertible Bonds [FCCB-2017] comprising of 110400, 5.75% Series A Convertible Bonds due September 2021 of USD 350 each aggregating to USD 38.640 Million and 110400, 4.76% Series B Non Convertible Bonds due September 2020 of USD 740 each aggregating to 81.696 Million at par on 28.11.2017. These Bonds were issued in exchange of outstanding existing Bonds. Series A Bonds [FCCB-2017] are convertible into equity shares of Rs.2/- each fully paid at the conversion price of Rs.27 per share, subject to the terms of issue, with a fixed rate of exchange o Rs.64 equal to USD 1.00 at any time on or after 28.11.2018 and prior to the close of business on 23.09.2021. As at 31.03.2018, 110400 Series A Bonds aggregating to USD 38.64 Million and 110400 Series B Bonds aggregating to USD 54.096 Million are outstanding.

No conversion has taken place during F.Y. 2017-18. Unless previously converted, the Series A Bonds are redeemable at maturity on 30.09.2021.

[b] The Company had issued 1,50,000, 5.75% Foreign Currency Convertible Bonds [FCCB-2012] due September 2017 of USD 1,000 each aggregating to USD 150 Million at par on 07.09.2012. Outstanding Bonds aggregating to US$ 110.40 Million along with certain interest accrued were exchanged with Foreign Currency Convertible Bonds [FCCB -2017] Series A & Series B Bonds aggregating to USD 120.336 Million.

* is part of overall scheme of Restructuring/ Reorganisation/ Realignment of debt and shall be dealt in accordance with the scheme. Rs.2,064 Lakhs is proposed to be transferred to JIDL.

“4.5” The Company accepted Fixed Deposit till 31.03.2014 under Fixed Deposits Scheme from Public which are repayable in one year, two years and three years. The Company has repaid all its outstanding Fixed Deposits and interest thereon in terms of the acceptance thereof, within the extension of time granted by the Hon’ble National Company Law Tribunal regularizing all such payments vide its Order dated 23.10.2017 except for only 33 FDs aggregating approx. Rs.21 lacs (including interest) which could not be repaid due to various reasons including Prohibitory Orders from various Government Agencies, unavailability of particulars of depositor/their complete addresses, etc. The amount payable on such FDs has been deposited in a separate Bank Account and the same shall also be repaid in due course in terms of the aforesaid Order of Hon’ble National Company Law Tribunal.

“4.6” Deferred payment of Land is the amount payable to Yamuna Expressway Industrial Development Authority [YEIDA] by way of half yearly instalments for the land admeasuring 1085.3327 hectares [Inclusive of 99.9320 hectares for Village Development and Abadi Extension] allotted to the Company. Lease Deeds in respect of 965.7390 hectares have been executed and lease Deeds for the balance 19.6617 hectares are yet to be executed, whereas land about 14.5993 hectares remains to be allotted. Current maturities of long term debts includes principal overdue Rs.32832 Lakhs and interest accrued and due on borrowings includes interest overdues Rs.18520 Lakhs payable to the Authority.

“4.7” Rupee Term Loan sanctioned amounting Rs.889.07 Crores from State Bank of India included in Note No 14.3 [a] (i)1 has been secured by way of Corporate Guarantee by Jaiprakash Power Ventures Ltd. [JPVL], an Associate Company.

“4.8” Term Loans and Other Loans guaranteed by Directors of the Company in personal capacity are given as under:

[B] CURRENT BORROWINGS

“4.9”Secured Term Loans from Banks:

Short Term Loan by Standard Chartered Bank is secured by way of first charge ranking pari passu by way of secured by first charge ranking pari passu by way of registered mortgage over land admeasuring 17.6892 acres situated at Village Wazidpur, Noida, Uttar Pradesh as mentioned in note no 14.3 [f] (iii) (2) above and charge on land parcel admeasuring 11.610 acres situated at Jaypee Sports City near F1 stadium, SDZ, Sector 25, Gautam Budh Nagar being part of land referred to in Note no. 14.3[f] (iii) (4) above.

“4.10”Working Capital Loans:

[a] The Working Capital facilities [Fund based -Rs.150 Crores. and Non Fund based - Rs.3580 Crores] sanctioned by the Consortium of 15 member Banks with ICICI Bank Limited, as Lead, are secured by way of first charge ranking pari passu on Current Assets of the Company except Real Estate Division i.e. Hypothecation of Stocks of Raw Materials, Work-in-Progress, Stock-in-Process, Finished Goods, Stores & Spares and Book Debts and second Charge ranking pari-pasu over movable and immovable fixed assets pertaining to Cement Division (excluding Jaypee Super Cement Plant, Mandla (North) coal block), Power division, Hotel Division (consisting of 5 Five Star Hotels) and Engineering & Construction Division [both present and future] of the Company.

Liabilities directly associated with assets in disposal group classified as held for sale as at 31.03.2017 do not include long term borrowings that will get transferred as part of the Scheme of Arrangement.

[p] Outstanding amount of current borrowings as at 31.03.2018 includes overdues amounting to Rs.3751 Lakhs (including bill discounting overdues - Rs.932 lakhs).

“5.1” Liabilities as at 31.03.2017 directly associated with assets in disposal group classified as held for sale do not include long term borrowings that will get transferred as part of the Scheme of Arrangement.

NOTE No.”6”

The Scheme of Arrangement between the Company and Jaypee Cement Corporation Limited (JCCL, 100% subsidiary of the Company) and UltraTech Cement Limited (Transferee company) and their respective shareholders and creditors as sanctioned by the Hon’ble National Company Law Tribunal, Allahabad Bench and Hon’ble National Company Law Tribunal, Mumbai Bench for transfer of its cement business, comprising identified cement plants with an aggregate capacity of 17.20 MTPA spread over the states of Uttar Pradesh, Madhya Pradesh, Himachal Pradesh, Uttarakhand and Andhra Pradesh and 4 MTPA Bara grinding unit (under commissioning), a unit of Prayagraj Power Generation Company Limited, an associate company at a total Enterprise Value of Rs.16,189 Crores including Enterprise value of Rs.13,189 Crores for the Company has been consumated on 29th June 2017, being the effective date for the purpose of the Scheme.

With effect from the appointed date the business in its entiriety is transferred to and vested in or be deemed to have been transferred to and vested in the transferee company on a going concern basis.

The Consideration for the above has been discharged by the transferee company by way of issue of 13200 Non- Convertible redeemable debentures having a face value of Rs.10,00,000 each, 1,00,000 non-convertible Series A Redeemable Preference Shares having a face value of Rs.1,00,000 each and 50,000 non- convertible Series B Reedemable Preference Shares having a face value of Rs.1,00,000 each.

Non- Convertible redeemable debentures and Non- convertible Series B Reedemable Preference Shares had been redeemed. Series A Redeemable Preference Shares are deposited in the escrow account and maturity is subject to the satisfaction of the conditions precedent relating to the Jaypee Super Plant.

Since the vesting of the Jaypee Super Plant is subject to the conditions precedent, the Assets of Plant are continued to be shown as Non-Currents assets classified as held for sale and Series A Redeemable preference shares issued by UTCL in escrow account as a Contingent Assets.

The Accounting has been done in accordance with the treatment as given in the Scheme. Assets and Liabilities of the Demerged Undertakings transferred are as per the following:

The Company’s significant leasing arrangements are in respect of operating leases for land, building and plant machinery with lease terms between 3 years to 30 years. The Company has option under some of the lease arrangements to lease the assets for additional terms of 30 years.

The Company has provided Rs.2736 lakhs (Previous Year Rs.3523 lakhs) in Profit & Loss Account during the year towards minimum lease payments.

[d] Finance Lease commitments - as a Lessee

The company has finance leases for land. The Company’s obligation under finance leases are secured by the lessor’s title to the leasehold land. Future minimum lease payments under finance leases and the present value of the net minimum lease payments are as under:

[i] 1,45,43,29,855 Equity Shares of Rs.10/- each fully paid-up [Previous Year 1,45,43,29,855 Equity Shares] of Jaiprakash Power Ventures Limited [JPVL] are pledged as collateral security and has given Non disposal undertaking of 10,21,88,566 Equity Shares of Rs.10/- each [Previous Year 10,21,88,566 Equity Shares] for the financial assistance granted by Lenders to JPVL for specific projects.

[ii] The Company has pledged 70,83,56,087 Equity Shares of Rs.10/- each fully paid-up [Previous Year 70,83,56,087 Equity Shares] of Jaypee Infratech Limited (JIL) with IDBI Trusteeship Services Limited (ITSL) (Trustee) held by the Company in favour of ITSL as collateral security for the financial assistance to JIL. The Company has also given Promoter support undertaking to IDBI led consortium loan. Outstanding amount of loan as at 31.12.2017 is Rs.1036136 Lakhs [Previous Year Rs.8,10,274 Lakhs].

[iii] 3,54,27,000 Equity Shares of Rs.10/- each fully paid-up [Previous Year 3,54,27,000 Equity Shares] of Himalyan Expressway Limited [HEL] held by the Company are pledged as collateral security for financial assistance granted by the Lenders to HEL. The Company has also given support undertaking to ICICI Bank. Outstanding amount of loan as at 31.03.2018 is Rs.24562 Lakhs [Previous Year Rs.23668 Lakhs].

[iv] 1,83,67,347 Equity Shares of Rs.10/- each fully paid-up [Previous Year 1,83,67,347 Equity Shares] of Madhya Pradesh Jaypee Minerals Limited [MPJPML] pledged as collateral security for financial assistance granted by the lenders to MPJPML. The loans have been paid by MPJPML, security yet to be released.

[v] The Company has given Letter of Comfort to Banks for financial assistance taken by Jaiprakash Power Ventures Limited. Outstanding amount of loan as at 31.03.2018 is Rs.98705 Lakhs [Previous Year Rs.98705 Lakhs].

[vi] The Company has given shortfall undertaking to Banks & Financial Institutions for Term Loan & Non Fund based Limit provided to Kanpur Fertilizers & Cement Limited. Outstanding amount of loan as at 31.03.2018 is Rs.21609 Lakhs [Previous Year Rs.31543 Lakhs] and outstanding amount of Working Capital and Non Fund based limit utilized as at 31.03.2018 is Rs.51518 Lakhs [Previous Year Rs.56448 Lakhs].

[vii] The Company has given shortfall undertaking to Banks for providing Non Fund based limit to Jaypee Cement Corporation Limited. Outstanding amount of Working Capital as at 31.03.2018 is Rs.35 Lakhs [Previous Year Rs.2010 Lakhs] and Outstanding amount of Non Fund based limit as at 31.03.2018 is Rs.13996 Lakhs [Previous Year Rs.7268 Lakhs].

[viii] 11,39,05,440 Equity Shares of Bhilai Jaypee Cement Limited (BJCL) of Rs.10/- each fully paid-up are pledged (since been invoked) as collateral security and Non Disposal undertaking for 16,70,61,312 Equity share of BJCL of Rs.10/each fully paid-up held by the Company has been given for financial assistance granted by Yes Bank to Jaypee Cement Corporation Limited. Outstanding amount of loan in JCCL is Rs.441.41 Crores. The pledge and NDU has also been extended for financial assistance including overdraft facility granted by Yes Bank to Kanpur Fertilizer & Cement Limited (KFCL). Outstanding amount of loan in KFCL is Rs.13600 lakhs.

[ix] 15,000 Equity Shares of Yamuna Expressway Tolling Limited (YETL) of Rs.10/- each fully paid-up held by the company are pledged as security for Term loan granted by Yes Bank to YETL (assigned to Suraksha Asset Reconstruction Company Limited). Further Non Disposal undertaking of 35,000 Equity share of YETL held by the Company has been given in favour of lenders. Outstanding amount of loan as at 31.03.2018 is Rs.600 Crores.

The Company has accounted for deferred tax assets on temporary differences, including those on unabsorbed depreciation and business losses, to the extent of deferred tax liability recognized at the balance sheet date, for which it is reasonably certain that future taxable income would be generated by reversal of such deferred tax liability.

NOTE No.”7”

[i] State Bank of India has invoked the pledge of 10,00,00,000 Equity Shares of Jaypee Infratech Limited (JIL) held by the Company and had sold 3,18,96,744 Equity Shares in the open market during the quarter ended March 31, 2018. The impact of the above said sale of shares has been taken in the Financial Statements. Balance shares aggregating to 6,81,03,256 are held with the trusteeship as at 31.03.2018. Pending disposal of balance shares by the Lender, the balance shares continue to be shown as part of Current Investments at cost.

[ii] IndusInd Bank has invoked the pledge of 6,00,00,000 Equity Shares of Jaypee Infratech Limited (JIL) held by the Company. IndusInd Bank through its trusteeship services had sold 4,80,00,000 Equity shares in the open market during the quarter ended March 31, 2018. The proceeds from the sale of shares has been adjusted against the Borrowing outstanding of Himalayaputra Aviation Limited (100% subsidiary of the Company). The impact of the above said sale of shares has been taken in the Statement of Profit and Loss. Balance shares aggregating to 1,20,00,000 are transferred back to Company . Thus effective invocation being for 4,80,00,000 Equity Shares of JIL.

[iii] Yes Bank Limited has invoked the pledge of 113905440 Equity Shares of Rs.10-/ each of Bhilai Jaypee Cement Limited held by the Company. Pending settlement with the Lender against its dues, the Company continues to be beneficiary owner of the shares as at 31st March, 2018. Hence, the same has been included as part of investments of the Company in the financial statements.

NOTE No.”8”

Non Current Trade receivables include Rs.2645.45 Crore, outstanding as at 31st March 2018 (Rs.2983.52 Crore, outstanding as at 31st March 2017) which represents various claims raised on the Clients based on the terms and conditions implicit in the Engineering & Construction Contracts in respect of closed / suspended/under construction projects. These claims are mainly in respect of cost over run arising due to suspension of works, client caused delays, changes in the scope of work, deviation in design and other factors for which Company is at various stages of negotiation/ discussion with the clients or under Arbitration/ litigation. On the basis of the contractual tenability, progress of negotiations/ discussions/ arbitration/ litigations, the management considers these receivables are fully recoverable.

NOTE No.”9”

The Company has made an investments of Rs.340 Crores (34 crores Equity Shares of Rs.10/- each, fully paid up ) in Prayagraj Power Generation Company Limited [PPGCL], an associate company. Lenders of PPGCL has invoked the entire pledged shares of PPGCL held by Jaiprakash Power Ventures Limited [JPVL] [holding company of PPGCL ] on 18th December 2017 due to default in payment of interest to Banks/ Financial Institutions . Keeping in view the above facts , the impact on the carrying value of the Equity shares of PPGCL held by the Company is currently unascertainable and considered at Book Value.

NOTE No.”10”

IDBI Bank Limited had filed Petition with Hon’ble National Company Law Tribunal [NCLT], Allahabad Bench [the Bench] U/s 7 of Insolvency & Bankrupty Code, 2016 in respect of Jaypee Infratech Limited [JIL] [Subsidiary of the Company] which was admitted vide Order dated 9th August, 2017 and Interim Resolution Professional (IRP) was appointed to carry the functions as mentioned under the Code.

While admitting the Petitions / Interventions filed by certain home buyers of Jaypee Infratech Limited, Hon’ble Supreme Court vide its various Orders gave directions to Jaiprakash Associates Limited to deposit a sum of Rs.2000 Crores with the Court on 11th September, 2017, which was modified vide its order(s) dated 22nd November,2017 and 21st March,2018 to deposit in instalment an amount of Rs.750 Crores by 10th May, 2018. The Company has deposited Rs.750 Crores (including Rs.550 Crores till 31st March 2018) with the Hon’ble Supreme Court till date.

In view of the ongoing IRP/ legal proceedings with Hon’ble National Company Law Tribunal (NCLT), Allahabad Bench and Hon’ble Supreme Court, the impact on the carrying value of the Investments in JIL amounting Rs.849.26 Crores (84,70,00,000 Equity Shares of Rs.10/- each excluding shares invoked by State Bank of India) , Current Receivables amounting Rs.341.75 Crores, Corporate Guarantee given to Lenders of JIL amounting Rs.232.17 Crores and deposit of Rs.550 Crores [till 31st March, 2018] with the Registrar, Supreme Court is currently unascertainable. Hence no provision is considered necessary in the Financial Statements for the year ended on 31st March 2018 by the Management.

NOTE No.”11”

The Company has received Termination Notice for the Mandla North Coal Mine allotted by Nominated Authority, Ministry of Coal on account of not meeting eligibility criteria mentioned in the Coal Mines Development and Production Agreement along with instructions for invocation of the Bank Guarantee submitted by the Company, in the form of Performance Security. The Hon’ble High Court has granted a stay against the Termination Notice and invocation of Performance Guarantee. Since, the matter is now being sub-judice in High Court, the recoverability of the amount invested aggregating to Rs.293.01 Crores as on 31.03.2018 in the development of the Coal Block and impact of the invocation of the Performance Guarantee is uncertain, no provision has been considered necessary to be made in the Financial statements.

NOTE No.”12”

Confirmations/ Reconciliation of balances of certain secured & unsecured loans, balances with banks, trade receivables, trade and other payables (including capital creditors) and loans and advances are pending. The management is confident that on confirmation / reconciliation there will not be any material impact on the financial statements.

NOTE No.”13”

During the year, the Company has made payment to its Managerial Personnel in terms of their respective appointments and within the limits prescribed under the Companies Act, 2013. However, in view of default in repayment of principal and / or interest to Banks and Financial Institutions during the year ended 31-3-2015, the Central Government has vide its letter dated 27-12-2017 directed the Company to recover the remuneration paid to its Managing and Whole-time Directors. The Management has been advised to approach the Central Government for reconsideration/ waiver of said recovery. In case the same is not approved by the Central Government, the Company intends to seek approval of the Banks / Public Financial Institutions / Secured Creditors and the shareholders for such waiver, in terms of Section 197 of the Companies Act, 2013, as amended in due course. The Company’s Nomination and Remuneration Committee & the Board of Directors have already consented for such course of action.

NOTE No.”14”

There are certain Entry tax matters under Appeals aggregating to Rs.510.59 Crores (excluding interest, currently unascertainable) pertaining to the State of Uttar Pradesh, Madhya Pradesh and Himachal Pradesh. The Company has challenged these on account of Constitutional Validity etc in Hon’ble High Courts/ Supreme Court. No provision has been made of the above in the financial statements and management is of the opinion that the Company will succeed in the appeal. The Company has already deposited Rs.299.93 Crores and also furnished Bank Guarantee of Rs.202.66 Crores against the above. These are also included in Note No.31(a) above.

NOTE No.”15”

[i] The Lenders of the Company in their Joint Lenders forum (JLF) meeting held on 22nd June, 2017 have approved restructuring/ realignment/ reorganisation of debt of the Company & its wholly owned subsidiary, JCCL. The Company has reworked the finance cost pertaining to Financial Year 2016-17 in accordance with the Lenders approved debt restructuring /realignment/ reorganisation scheme.

[ii] For the FY 2017-18, the Company has provided interest expenses on the debt portion that will remain with the company in accordance with the restructuring Scheme approved and Master Re-structuring Agreement (MRA) signed with the Lenders. Interest aggregating to Rs.796.39 Crores on debt portion of Rs.11091.27 Crores which will be transferred to Real Estate SPV namely ‘Jaypee Infrastructure Development Limited (JIDL) on Order by Hon’ble National Company Law Tribunal (NCLT), Allahabad with appointed date of 01st July, 2017 has been added to the carrying cost of the Inventory/ Projects under Development in respect of SDZ Real Estate Undertaking [SDZ-RE],since the same has to be serviced from the assets/development of Assets of SDZ-RE and as such no further impact in this respect on the Financial results is envisaged.

[iii] As a part of restructuring / reorganisation / realignment of the debt of the Company, the Scheme of Demerger of the Undertaking (SDZ -RE) comprising identified moveable and immoveable assets and liabilities to be transferred to and vested in the wholly owned subsidiary of the Company, namely, Jaypee Infrastructure Development Limited (JIDL) as a going concern, on a slump exchange basis is pending for sanction with NCLT Allahabad.

NOTE No.”16”

[i] The following were classified as Disposal Group held for sale:

(a) Identified Cement Plants transferred to UltraTech Cement Limited (Refer note No 31).The Scheme of Arrangement has been consummated w.e.f. 29th June, 2017.

(b) 74% stake in Bhilai Jaypee Cement Limited for sale of which the Company has entered definitive agreement with Orient Cement Limited (OCL).The transaction is subject to regulatory and other approvals.

(c) SDZ-RE undertaking to be transferred and vested in the wholly owned subsidiary of the Company, namely, Jaypee Infrastructure Development Limited (JIDL) as a part of restructuring / reorganisation / realignment of the debt of the Company through the Scheme of Demerger. The scheme is subject to sanction by National Company Law Tribunal, Allahabad.

[d] Other Related Companies where transaction have taken place:

1 Jaypee Development Corporation Limited

2 Andhra Cements Limited

3 JIL Information Technology Limited

4 Gaur & Nagi Limited

5 Jaypee International Logistics Company Private Limited

6 Tiger Hills Holiday Resort Private Limited

7 Indesign Enterprises Private Limited

8 Jaypee Hotels Limited

9 Yamuna Expressway Tolling Private Limited [formerly known as Jaypee Mining Venture Pvt. Ltd.] [Associate Company till 24.03.2017]

10 JC World Hospitality Pvt. Ltd.

11 Jaiprakash Kashmir Energy Limited

12 Kram Infracon Private Limited

[e] Key Management Personnel, where transactions have taken place:

1 Shri Manoj Gaur, Executive Chairman & C.E.O.

2 Shri Sunil Kumar Sharma, Executive Vice Chairman

3 Shri Sunny Gaur, Managing Director [Cement]

4 Shri Pankaj Gaur, Joint Managing Director [Construction]

5 Shri Ranvijay Singh, Whole time Director

6 Shri Rahul Kumar, Whole time Director & C.F.O. [till 31.07.2017]

7 Shri Naveen Kumar Singh [relative of key management personnel]

8 Shri Raj Kumar Singh [relative of key management personnel]

Note: Related party relationships are as identified by the Company and relied upon by the Auditors.

[a] Segments have been identified in accordance with Indian Accounting Standard on Operating Segment [IND AS-108] taking into account the organisation structure as well as differential risk and returns of these segments.

[b] Business segment has been disclosed as the primary segment.

[c] The Company has determined following reporting segment based on the information reviewed by the Company’s Chief Operating Decision Maker [CODM]:

[i] Construction Civil Engineering Construction/EPC Contracts/Expressway

[ii] Cement Manufacture and Sale of Cement and Clinker

[iii] Hotel/Hospitality Hotels, Golf Course, Resorts & Spa

[iv] Sports Events Sports related Events

[v] Real Estate Real Estate Development and Maintenance

[vi] Power Generation and Sale of Energy

[vii] Investments Investments in Subsidiaries, Associates and Others

[viii] Others Includes Coal Extraction, Waste Treatment Plant ,Heavy Engineering Works, Hitech Castings, Man Power Supply etc.

The above business segments have been identified considering - [i] the nature of product and services, [ii] differing risks and returns [iii] the internal organisation and management structure and [iv] the internal financial reporting system.

Non-Current Assets for this purpose consists of property, plant and equipment, Capital Work in Progress and intangible assets including under development.

Revenue from Major Customers

The Company is not reliant on revenue from transaction of the any single external customer and does not receive 10% or more of the revenue from transaction with any single external customers.

[d] Segment Revenues, Operating Results, Assets and Liabilities include the amounts identifiable to each segment and amounts allocated on a reasonable basis.

[e] Segment Assets exclude Deferred Tax Asset. Segment Liabilities exclude Deferred Tax Liability and Loans.

Level 1:

This hierarchy includes financial instruments measured using quoted prices. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting date. The mutual funds are valued using the closing NAV declared by respective fund house.

Level 2:

Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

Level 3:

The Company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

There were no significant changes in the classification and no significant movements between the fair value hierarchy classifications of assets and liabilities during FY 2017-18.

(b) Valuation technique used to determine fair value (Level I)

Specific valuation technique used to value financial instruments include:

- the use of quoted market price or NAV declared

- the fair value of the remaining financial instruments is determined using the discounted cash flow analysis.

(c) Fair value measurements using significant unobservable inputs (Level 3)

The following table presents the changes in level 3 items for the period ended 31st March 2018 and 31st March 2017

(d) Fair value of financial assets and liabilities measured at amortised cost

The carrying amounts of trade receivables, trade payables, capital creditors and cash and cash equivalents, bank balances are considered to be the same as their fair values.

The fair value of non current borrowings are based on discounted cash flows using a weighted average cost of capital. They are classified as level 3 fair value in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

NOTE No.”17”

Financial Risk Management

The Company’s activities expose it to market risk, liquidity risk and credit risk. The Company’s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.

(a) Credit Risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The Company’s exposure to credit risk is influenced mainly by the individual characteristic of each customer and the concentration of risk from the top few customers.

Credit Risk Management

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. Trade receivables, Unbilled Revenue and Work in Progress, Loans and Other receivables are typically unsecured. Credit risk has always been managed by the Company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. On account of the adoption of Ind AS 109, the Company uses ECL model to assess the impairment loss or gain. The Company uses a provision matrix to compute the ECL allowance for trade receivables and unbilled revenues. The provision matrix takes into account available external and internal credit risk factors such as credit ratings from credit rating agencies and the Company’s historical experience for customers.

Credit Risk Exposure

The allowance for life time ECL on trade receivables and other receivables for the year ended 31st March 2018 is Rs.575 Lakhs and for the year ended 31st March 2017 is Rs.1739 Lakhs.

Credit risk on cash and cash equivalents and bank balances is limited as the Company generally invest in deposits with bank. Investments primarily include investments in liquid mutual fund units, quoted and unquoted equity shares, preference shares and quoted bonds.

[b] Liquidity Risk

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due.

[i] Liquidity Risk Management

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, bank loans, debentures, bonds and finance lease. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding and debt maturing within 12 months can be rolled over with existing lenders.

The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet operational needs. Any short term surplus cash generated , over and above the amount required for working capital management and other operational requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested in interest bearing term deposits and other highly marketable debt investments with appropriate maturities to optimise the cash returns on investments while ensuring sufficient liquidity to meet its liabilities.

[c] Market Risk

The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk.

[i] Foreign Currency Risk

The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The company is exposed to foreign exchange risk arising from foreign currency borrowings [ECB]. Foreign currency risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the Company’s functional currency (INR). The risk is managed through a forecast of highly probable foreign currency cash flows.

Foreign Currency Risk Management

The Company’s risk management committee is responsible to frame, implement and monitor the risk management plant of the Company. The committee carry out risk assessment with regard to foreign exchange variances and suggests risk minimization procedures and implement the same.

Sensitivity Analysis

The sensitivity of profit or loss to changes in the exchange rates arises mainly from foreign currency denominated financial instruments.

[ii] Interest Rate Risk

The Company’s main interest rate risk arises from long term borrowings with variable rates, which expose the Company to cash flow interest rate risk. The Company’s fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rate.

Interest Rate Risk Management

The Company’s risk management committee ensures all the current and future material risk exposures are identified, assessed, quantified, appropriately mitigated, minimised, managed and critical risks when impact the achievement of the Company’s objective or threatens its existence are periodically reviewed.

[iii] Price Risk

The price risk for the company is risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices.

Price Risk Management

To manage its price risk arising from investments, the Company diversifies its portfolios. Diversification of the portfolio is done in accordance with the limits set by the Company.

Price Risk Exposure

The Company’s exposure to price risk arises from investments held by the Company and classified in the balance sheet as fair value through profit or loss.

NOTE No.”18”

Capital Management

For the purpose of the Company’s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders. The objective of the company’s capital management is to safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits other stakeholders and maintain an optimal capital structure to reduce the cost of capital. The company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The company monitors capital structure using gearing ratio, which is net debt divided by total equity plus net debt. The company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents.

NOTE No.”19”

(a) Provident Fund - Defined Contribution Plan

Employer’s Contribution to Provident and Pension Fund benefits Rs.2131 Lakhs [31st March 2017 Rs.2720 Lakhs] is recognised as an expense for the year

(b) Gratuity and Leave encashment - Defined Benefit Plans - Provision made as per actuarial valuation. The Company has a Trust namely Jaiprakash Associates Employees Gratuity Fund Trust to manage funds towards Gratuity Liability of the Company. SBI Life Insurance Company Limited and ICICI Prudential Life Insurance Company Limited have been appointed for management of the Trust Fund for the benefit of the employees.

NOTE No.”20”

The Free-hold Land [Agricultural] purchased by the Company for Rs.3 Lakhs measuring 7 Bighas at Rangpuri, New Delhi had been notified for acquisition U/s 4 & 6 of the Land Acquisition Act. The Company’s claim for compensation is pending for settlement.

NOTE No.”21”

113905440 Equity Shares of Rs.10/- each of Bhilai Jaypee Cement Limited held by the Company are pledged as collateral security. These shares have since been invoked by the Lender. The Company continues to be beneficiary owner of the shares as at 31st March, 2018 and the sale proceeds of these shares to be transferred to the Lender for settlement of outstanding dues. Hence, the same has been included as part of Investments of the Company in the financial statements.

NOTE No.”22”

Jaiprakash Associates Limited (JAL) had awarded orders on Tecpro systems Limited (TSL) for various projects (Cement plant and Captive Power Plants) for supply, erection (only Churk Power Plant), Supervision of erection & commissioning, performance and testing of the Coal Handling Plants at Sidhi, chunar, Rewa, Churk, JP Super. However, TSL did not complete the entire work as per the terms & conditions of the contracts, and there were delays in design and engineering, Supply of Plant and Equipments for all these plants.

Due to these delays, an amount of Rs.12,03,33,844/- is recoverable from TSL on account of liquidated damages and other miscellaneous recoveries. The total credit available in respective of books is Rs.931 Lakhs and therefore a net amount of Rs.272 Lakhs is recoverable from TSL.

NOTE No.”23”

The Scheme of demerger of the SDZ -RE Undertaking comprising identified moveable and immovable assets and liabilities of the Company to be transferred to and vested in the wholly owned subsidiary of the Company, namely Jaypee Infrastructure Development Limited as a going concern, on a slump exchange basis, is pending sanction by National Company Law Tribunal [NCLT], Allahabad. Since the appointed date is 1st July, 2017, post sanction of the Scheme by Hon’ble NCLT, Allahabad, the figures of the current financial year will be reinstated.

NOTE No.”24”

The Results exclude the financial results for the identified Cement Plants transferred to M/s UltraTech Cement Limited by the Company on 29th June, 2017 and hence figures for the year ended 31st March, 2018 are not comparable with the previous corresponding period.

NOTE No.”25”

The previous year figures have been regrouped/recast/rearranged wherever considered necessary to conform to the current year’s classification.

NOTE No.”26”

All the figures have been rounded off to the nearest lakh Rs..

Source : Dion Global Solutions Limited
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