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Notes to Accounts of Jaypee Infratech Ltd.

Mar 31, 2016

Note No.1(a)

The redeemable Non-Convertible Debentures (NCDs) of ''10,00,000/- each aggregating to '' 500 Crores, mentioned at (i) above, were secured by exclusive charge on (i) mortgage of land and building of company''s corporate office at Noida on 9.86 acres of land (ii) Letter of comfort from Jaiprakash Associates Limited and (iii) personal guarantee of Shri Manoj Gaur, Shri Sunil Kumar Sharma and Shri Sameer Gaur. These NCDs have since been redeemed/pre-redeemed during the year along with premium.

Note No.2(b)

The redeemable Non-Convertible Debentures (NCDs) of ''10,00,000/- each aggregating to '' 400 Crores, mentioned at (ii) above, are secured by exclusive charge on (i) mortgage of land admeasuring 100.0179 acres at Tappal (ii) Letter of comfort from Jaiprakash Associates Limited

(iii) Corporate Guarantee of Jaiprakash Associates Limited and (iv) personal guarantee of Shri Manoj Gaur, Shri Sunil Kumar Sharma and Shri Sameer Gaur.

Note No.3(c)

The redeemable Non-Convertible Debentures (NCDs) of ''10,00,000/- each aggregating to '' 400 Crores, mentioned at (iii) & (iv) above, are secured by exclusive charge on (i) mortgage of land admeasuring 124.73 acres at Tappal (ii) Corporate Guarantee of Jaiprakash Associates Limited (iii) Letter of comfort from Jaiprakash Associates Limited and (iv) personal guarantee of Shri Manoj Gaur, Shri Sunil Kumar Sharma and Shri Sameer Gaur.

Note No.4.(i)

Pursuant to the Company''s request for refinancing of the existing outstanding principal Rupee Term Loan (RTL) of the Company aggregating to '' 6550 Crores under RBI circular dated 15.12.2014 on “Flexible Structuring of Existing Long Term Project Loans to Infrastructure and Core Industries” & additional RTL of '' 1680 Crores ('' 1080 Crores under RTL-A for payment to pressing creditors and '' 600 Crores under RTL-B for long term working capital), all the lenders except LIC of India,sanctioned the refinanced facility of '' 6550 crore.

The refinanced RTL of '' 6550 Crores ('' 1950 under Tranche-I & '' 4600 Crores under Tranche-II) & additional RTL of '' 1610 Crores (? 1080 Crores under RTL-A (disbursed '' 1080 Crore) for payment to pressing creditors and '' 530 Crores (disbursed '' 477 crore) under RTL-B for long term working capital) from IDBI Bank led consortium banks is secured by way of first charge ranking pari-passu on (i) mortgage of about 41 KM land of Yamuna Expressway, (ii) mortgage on part of Land in Jaganpur, Mirzapur, Agra & Tappal having a valuation cover of 1.5 times for Tranche-I RTL ('' 1950 Crores) & RTL-A (? 1080 Crores) & RTL-B ('' 600 Crores) and valuation of 2 times for Tranche-II RTL (? 4600 Crores), (iii) Hypothecation of all the movables of the company, company''s book debts and receivables, (iv)Assignment of all the rights, title, interest, benefit from claim and demand in the Concession Agreement,(v) Debt Service Reserve Account (DSRA) for an amount equal to 1.5 times of the principal & interest amount due for ensuing quarter to the Rupee Term Lenders,(vi) pledge of 51% shares of the fully paid up equity shares of the Company and (vii) personal guarantee of Shri Manoj Gaur.

Note No.5(ii)

The Term Loan from SREI Equipment Finance Limited mentioned at (ii) above is secured by way of mortgage of 40.79 Acres of Land for Development at Tappal.

Note No.6

The period of continuing default as on 31.03.2016 in repayment of loans to banks/financial institutions amounting to '' 3,000,000,000 stated under ‘Term Loan from Banks / Financial Instituions'' under ‘Current Maturities of Long-term Debts'' in Note no. 9 ranges from 81 days to 203 days. The period of continuing default as on 31.03.2016 in payment of interest to banks/financial institutions amounting to '' 1,930,760,850 included under ‘Interest Accrued and due on borrowings'' in Note no. 9 ranges from 1 day to 212 days.

Note No.7

The New Delhi Bench of the Hon''ble Company Law Board has vide its order dated 31.03.2016, granted six months time till 30.09.2016 for repayment of fixed deposits along with interest, in respect of maturing deposits.

b) Income Tax matters under appeal: The Company is entitled for tax holiday for 10 years effective F.Y 2008-09 (A.Y 200910) u/s 80IA (4)(i) read with Explanation (a) of the Income Tax Act, 1961(the Act). The notice issued by the Income Tax Department for A.Y 2009-10 u/s 263 of the said Act and all proceedings related thereto have been quashed by the Hon''ble Income Tax Appellate Tribunal (ITAT), Delhi Bench, New Delhi vide its order dated 13.04.2015. Vide its said order, ITAT has held that the Company is eligible for deduction under said 80IA(4)(i) read with Explanation(a). However, The Income Tax Department has filed an appeal in the High Court of judicature at Allahabad against the said order, which is yet to be admitted, the Income Tax Department has also issued a show cause u/s 263 of the Act for the A.Y2010-11 and the assessment proceedings for the A.Y2010-11 have been set aside, to be made de-novo. The Company has filed an appeal against the said order with ITAT and is sanguine that the appeal would be decided in its favour, more so in view of the order passed by ITAT in the similar appeal for A.Y2009-10. However, the Assessing Officer has passed the de-novo assessment order on 30.03.2016 not accepting the Company''s claim u/s 80IA (4)(i) read with explanation (a) of the Act for the said Assessment Year. The Income Tax Department has also not accepted the Company''s claim u/s 80IA(4)(i) read with explanation (a) of the Act for the Assessment Year 2011-12 & 2012-13. The value of matters under appeal are estimated at Rs,7,86,53,28,910 (including Rs,3,99,33,046 related to TDS for A.Y2011-12,12-13,13-14 & 14-15) [Amount deposited against the same is Rs, 11,53,72,093/-]. However, the income tax department vide rectification advice u/s 154 of Income Tax Act,1961 has allowed to avail MAT credit u/s 115 JAA of Income Tax Act of Rs,99,81,97,488 for A.Y 2010-11 in A.Y 2011-12. The Company has been legally advised that, based on the decisions of the ITAT and Appellate Authorities and the interpretation of relevant tax provisions, the above additions are likely to be set aside or substantially reduced.

NOTE NO.8

Commitments:

Estimated amount of contracts, remaining to be executed on capital account '' 30,00,00,000 (Previous Year '' 49,00,00,000).

NOTE NO. 9

a) The Company has provided the following as security for the financial assistance availed by Jaiprakash Associates Limited(JAL) from its lenders;

* The Company has entered in to an ‘Agreement to sell’ dated 15th December, 2009 for said land with JAL and has received the entire sale consideration.

** Out of the said 20.84 acres of land, the Company has entered in to an ‘Agreement to sell’ dated 15th December, 2009 for 10.84 acres of land with JAL and has received the entire sale consideration.

# The Company has entered in to an ‘Agreement to sell’ for the said 38.20 acres of land with Jaypee Hotels Limited (Since merged with JAL) and has received the entire sale consideration.

VII. Enterprises best estimate of contribution during next year:

(i) Gratuity : Rs,22,49,196

(ii) Leave encashment : Rs, 40,53,702

VIII. Actuarial Assumptions

(i) Discount Rate : 8.00%

(ii) Mortality Table : IALM (2006-08)

(iii) Turnover Rate : Up to 30 years - 2%, 31-44years -5%,

Above 44 years -3%

NOTE NO.10

Expenditure incurred on Corporate Social Activities (CSR):

The Company has framed its CSR policy pursuant to the Companies Act, 2013. The Company has spent Rs, 17,00,00,000/-(Previous Year Rs, 19,12,09,721/-) during the year, as per the provisions of Companies Act,2013.

NOTE NO.11

Related Party Disclosures, as required in terms of ‘Accounting Standard [AS] -18'' are given below:

Relationships (Related party relationships are as identified by the Company and relied upon by the Auditors)

A. Holding Company: Jaiprakash Associates Limited (JAL)

B. Subsidiary Company : Jaypee Healthcare Limited (JHCL)

C. Fellow Subsidiary Companies:

1. Jaiprakash Power Ventures Limited (JPVL) (subsidiary of JAL)

2. Jaypee Powergrid Limited (JV subsidiary of JPVL)

3. Himalayan Expressway Limited (HEL) (subsidiary of JAL)

4. Jaypee Arunachal Power Limited (JV subsidiary of JPVL)

5. Sangam Power Generation Company Limited (subsidiary of JPVL)

6. Prayagraj Power Generation Company Limited (subsidiary of JPVL)

7. Jaypee Meghalaya Power Limited (subsidiary of JPVL)

8. Bina Power Supply Limited (new name w.e.f. 28.09.15 of Himachal Karcham Power Company Limited) (subsidiary of JPVL)

9. Bhilai Jaypee Cement Limited (JV subsidiary of JAL)

10. Gujarat Jaypee Cement & Infrastructure Limited (JV subsidiary of JAL)

11. Jaypee Ganga Infrastructure Corporation Limited (subsidiary of JAL)

12. Jaypee Agra Vikas Limited (subsidiary of JAL)

13. Jaypee Fertilizers & Industries Limited (subsidiary of JAL)

14. Jaypee Cement Corporation Limited (JCCL) (subsidiary of JAL)

15. Himalyaputra Aviation Limited (subsidiary of JAL)

16. Jaypee Assam Cement Limited (subsidiary of JAL)

17. Jaypee Cement Cricket (India) Limited (subsidiary of JAL)

18. Jaypee Cement Hockey (India) Limited (subsidiary of JAL)

19. Jaiprakash Agri Initiatives Company Limited (subsidiary of JCCL) Note-1:Bokaro Jaypee Cement Limited (BoJCL) ceased to be a subsidiary of JAL w.e.f. 29th November 2014, consequent to sale of JAL''s entire 74% stake in BoJCL.)

Note-2:Jaypee Sports International Limited (JPSI) ceased to be a subsidiary of JAL as it amalgamated into JAL on 16.10.15 w.e.f. the Appointed Date 01.04.14)

Note-3: Himachal Baspa Power Company Limited (was a subsidiary of JPVL till 07.09.15)

D. Associate Companies:

1. MP Jaypee Coal Limited (JV Associate Co.)

2. MP Jaypee Coal Fields Limited (JV Associate Co.)

3. Madhya Pradesh Jaypee Minerals Limited (JV Associate Co.)

4. Jaypee Uttar Bharat Vikas Private Limited (JV Associate Co.)

5. Kanpur Fertilizers & Cement Limited (JV Associate Co.)

6. Jaypee Infra Ventures (A Private Company With Unlimited Liability) (JIV)

7. Jaypee Development Corporation Limited (JDCL) (Subsidiary of JIV)

8. Andhra Cements Limited (subsidiary of JDCL)

9. JIL Information Technology Limited (JILIT) (Subsidiary of JIV)

10. Gaur & Nagi Limited (Subsidiary of JILIT)

11. Jaypee International Logistics Company Private Limited (subsidiary of JIV) (under process of striking off under Section 560 of the Companies Act, 1956)

12. Tiger Hills Holiday Resort Private Limited (subsidiary of JDCL)

13. Anvi Hotels Private Limited (subsidiary of JIV) (under process of striking off under Section 560 of the Companies Act, 1956)

14. RPJ Minerals Private Limited (RPJMPL)

15. Sarveshwari Stone Products Private Limited (subsidiary of RPJMPL)

16. Rock Solid Cement Limited (subsidiary of RPJMPL)

17. Sonebhadra Minerals Private Limited

18. Jaiprakash Kashmir Energy Limited (under process of striking off under Section 560 of the Companies Act, 1956)

19. Indesign Enterprises Private Limited (IEPL) (subsidiary of JIV)

20. Ibonshourne Limited (subsidiary of IEPL w.e.f 11.01.2016)

21. Jaypee Hotels Limited (KMP based associate company) (KMP based associate company)

22. Jaypee Mining Ventures Private Limited (KMP based associate company)

23. Ceekay Estates Private Limited (KMP based associate company)

24. Jaiprakash Exports Private Limited(KMP based associate company)

25. Bhumi Estate Developers Private Limited(KMP based associate company)

26. Pac Pharma Drugs and Chemicals Private Limited (under process of striking off under Section 560 of the Companies Act, 1956) (KMP based associate company)

27. Jaypee Technical Consultants Private Limited (KMP based associate company)

28. Jaypee Jan Sewa Sansthan (Company Limited by Shares not for profit u/s 25 of the Companies Act, 1956) (KMP based associate company)

29. Think Different Enterprises Private Limited (KMP based associate company)

30. OHM Products Private Limited (KMP based associate company)

31. Sparton Growth Fund Private Limited(KMP based associate company)

32. iValue Advisors Private Limited (KMP based associate company)

33. JC World Hospitality Private Limited (KMP based associate company)

34. Dixit Holdings Private Limited (KMP based associate company)

35. Librans Venture Private Limited(KMP based associate company)

36. Librans Real Estate Private Limited(KMP based associate company)

37. CK World Hospitality Private Limited (KMP based associate company)

38. JC Wealth & Investment Private Limited (KMP based associate company)

E. Key Managerial Personnel (KMP):

1. Shri Manoj Gaur, Chairman cum Managing Director.

2. Shri Sameer Gaur, Joint Managing Director.

3. Shri Rakesh Sharma, Whole Time Director.

4. Shri Sachin Gaur, Whole Time Director & CFO.

5. Smt. Rekha Dixit, Whole Time Director.

6. Shri Gaurav Jain, Whole Time Director.

7. Shri Pramod Kumar Aggarwal. (upto 31.12.2015)

Details of securities for loans/NCDs taken by Jaiprakash Associates Ltd, holding company from banks/financial institutions, and details of corporate guarantee/securities for Jaypee Healthcare Limited, subsidiary company are stated elsewhere in the Accounts

NOTE NO.37

The Yamuna Expressway Project is an integrated project which inter alia includes construction, operation and maintenance of Yamuna Expressway and right for land development of 25 million sq.mtrs. along the Expressway. Keeping this in view, segment information is not provided since the Company has only one segment.

NOTE NO.12

Provision for current taxation is NIL (Previous year Rs, 89,90,00,000/-).

NOTE NO.13

The Company does not have any long term contracts including derivative contracts for which there are any material foreseeable losses as at March 31, 2016

NOTE NO.14

a) All the figures have been rounded off to the nearest rupee.

b) Previous year figures have been reworked/regrouped/rearranged wherever necessary to conform to those of current year resignation from the closing of business hours of 31.12.2015

The Board places on record its appreciation for the valuable contributions by Shri Pramod Kumar Aggarwal, Shri P Uma Shankar and Shri G.A. Tadas during their tenure as Directors of the company


Mar 31, 2015

Note No.1 (a)

Pursuant to the Company's request for refinancing of the existing outstanding principal Rupee Term Loan (RTL) of the Company aggregating to ' 6550 Crores under RBI circular dated 15.12.2014 on "Flexible Structuring of Existing Long Term Project Loans to Infrastructure and Core Industries" & additional RTL of Rs. 2000 Crores (Rs. 1400 Crores under RTL-A for payment to pressing creditors and Rs. 600 Crores under RTL-B for long term working capital), IDBI Bank has sanctioned refinance assistance of Rs. 4200 Crores and a fresh RTL of Rs. 450 Crores vide their LOI No. HO.PAD/JIL/1135 dated 24.03.2015 duly modified vide letter no. HO.PAD/JIL/1167 dated 28.04.2015. IIFCL has also sanctioned a RTL of Rs. 900 Crores under 'Takeout Finance Scheme' vide its letter no. IIFCL: Takeout: 2015:8828 dated 27th March, 2015 duly modified vide letter no. IIFCL/ Credit/2014-15/9913 dated 12th May, 2015. As part of the Takeout Finance Scheme, IIFCL shall take out RTL of Rs. 900 Crores from IDBI Bank out of their existing outstanding principal amount of RTL. Besides, ICICI Bank & IFCI have sanctioned and disbursed a sum of ' 300 Crores & Rs. 230 Crores respectively as part of RTL-A. State Bank of Hyderabad has also sanctioned RTL of Rs. 100 Crores under RTL-A (disbursement Rs. 24 Crores) & Rs. 80 Crores under RTL-B. The Company's request with other lenders for refinancing of the existing RTL and the additional RTL is under advance stage of sanction.

(b) The existing Rupee Term Loan from IDBI Bank, led consortium banks is secured by (i) mortgage of about 41 KM land of Yamuna Expressway (ii) Hypothecation of all the movables of the company, company's book debts and receivables (iii) pledge of 51% shares of the issued share capital of the Company (iv) first charge ranking pari-passu on mortgage on part of Land for development at Mirzapur, Jaganpur, Agra & Tappal having a valuation cover of 1.2 times for Rs. 1950 Crores and 2 times for Rs. 4600 Crores and (v) personal guarantee of Shri Manoj Gaur.

(c) The refinanced RTL of Rs. 6550 Crores (Rs. 1950 under Tranche-I & Rs.4600 Crores under Tranche-II) & additional RTL of Rs. 2000 Crores (Rs. 1400 Crores under RTL-A for payment to pressing creditors and Rs. 600 Crores under RTL-B for long term working capital) from IDBI Bank led consortium banks would be secured by way of first charge ranking pari-passu on (i) mortgage of about 41 KM land of Yamuna Expressway, (ii) mortgage on part of Land in Jaganpur, Mirzapur, Agra & Tappal having a valuation cover of 1.5 times for Tranche-I RTL (Rs. 1950 Crores) & RTL-A (Rs. 1400 Crores) & RTL-B (Rs.600 Crores) and valuation of 2 times for Tranche-II RTL (Rs. 4600 Crores), (iii) Hypothecation of all the movables of the company, company's book debts and receivables, (iv)Assignment of all the rights, title, interest, benefit from claim and demand in the Concession Agreement,(v) Debt Service Reserve Account (DSRA) for an amount equal to 1.5 times of the principal & interest amount due for ensuing quarter to the Rupee Term Lenders,(vi) pledge of 51% shares of the fully paid up equity shares of the Company and (vii) personal guarantee of Shri Manoj Gaur.

(d) The Hon'ble National Green Tribunal (NGT) vide its order dated 28.10.2013 had directed that no completion certificate shall be issued by the Authority concerned for such buildings being constructed within 10 Km radius of Okhla Bird Sanctruy till the Ministry of Environment & Forests (MoEF) in consultation with National Wildlife Board issues Notification for declaring Eco Sensitive Zone area around Okhla Bird Sanctury & the matter is finally decided by the Supreme Court of India. The said order has restrained the New Okhla Industrial Development Authority (NOIDA) from issuing the completion certificate for the completed Units ready for handing over the possession to the customers. This also led to increase in the finished inventory and declining Real estate sales which adversely affected the cash flow of the Company. The stalemate continues at the time of adoption of accounts. Interest accured and due on borrowings aggregating to Rs. 162,34,19,479/- mentioned in 'Other Current Liabilities' as at 31.03.2015 is the amount due on various loans for the period from January 2015 to March, 2015. On the day of adoption of accounts by the Board of Directors, the interest accrued and due amount to Rs. 18,41,14,575/-.

(e) The Term Loan from SREI Equipment Finance Limited mentioned at (iv) above is secured by way of mortgage of 27 Acres of Land for Development at Tappal.

The New Delhi Bench of the Hon'ble Company Law Board has vide its order dated 29.04.2015, granted thirty days time from 30.04.2015 to clear matured Axed deposits and six months time from 30.04.2015 to clear pre matured fixed deposits alongwith interest.

NOTE NO.2

Commitments;

Estimated amount of contracts, remaining to be executed on capital account: ' 49,00,00,000 (Previous Year ' 164,00,00,000).

NOTE No. 3

a) The Company has provided a letter of comfort to ICICI Bank Plc, U.K. and ICICI Bank, Canada, in respect of financial assistance, equivalent to USD 50 million each, sanctioned to Jaiprakash Associates Limited (JAL). In the event of default, if any, in repayment of said facilities by JAL,the liability of the lenders of the Company shall have priority.

b) The Company has mortgaged 105.8935 acres of land situated at Noida in favour of :

(i) IDBI Trusteeship Services Limited - 40.1735 acres for the term loan of Rs. 850 Crores provided by Standard Chartered Bank to JAL.

(Out of the said 40.1735 acres of land, the Company has entered into an Agreement to Sell' dated 15th December, 2009 for 15.1695 acres of land with JAL and has received the entire sale consideration. The Company has requested for substitution of the mortgage for the said land, which is under consideration by the bank).

(ii) Axis Trustee Services Limited- 27.52 acres for a term loan aggregating to Rs. 600 Crores, (Axis Bank Limited - Rs. 350 Crores, The South Indian Bank Limited - Rs. 100 Crores and State Bank of Travencore- Rs. 150 Crores) availed by JAL. (Out of the said 27.52 acres of land, the Company has entered into an "Agreement to Sell" dated 18.10.2007 for 10 acres of land with Jaiprakash Enterprises Limited (since merged with JAL) and an "Agreement to Sell" dated 15.12.2009 for 17.52 acres of land with JAL and has received the entire sales consideration.)

(iii) HDFC Limited- 38.20 acres land for a term loan of Rs. 450 Crores sanctioned by HDFC Limited to JAL for which an Agreement to Sell' was executed with Jaypee Hotels Limited (since merged with JAL) on 12th January, 2006 and the entire sales consideration has been received.

c) The Company has mortgaged 433.345 acres of land situated at Jaganpur and 151.0063 acres of land situated at Tappal in favour of IDBI Trusteeship Services Limited for a term loan of Rs. 1500 crores sanctioned by ICICI Bank Limited to JAL.

d) The Company has mortgaged 100 acres of land situated at Tappal in favour of ICICI Bank limited for term loan aggregating to Rs. 3000 crores and Working Capital Demand Loan of Rs. 175 crores sanctioned by ICICI Bank Limited to JAL.

e) The Company has mortgaged 166.9615 acres of land situated at Tappal and 167.229 acres of land situated at Agra in favour of Axis Trustee Services Limited for a term loan of Rs. 2000 crores sanctioned by State Bank of India & NCDs of Rs. 1250 crores subscribed by Axis Bank Limited to JAL.

f) The Company has given an undertaking to ICICI Bank Limited to exercise the option to purchase the outstanding amount of the facility of Rs. 250 crores sanctioned by ICICI Bank Ltd to M/s Jaypee Sports International Limited, a fellow subsidiary Company, by way of Optionally Convertible Cumulative Redeemable Preference Shares(OCCRPS), after five years with effect from F.Y.2010-11 or under the circumstances as stipulated under the terms and conditions of the sanction.

NOTE NO.4

Corporate Undertaking and Securities for Subsidiaries:

i) The Company has given a shortfall undertaking to Yes Bank Limited in respect of financial assistance of Rs. 325 Crores to Jaypee Healthcare Limited (JHCL) (Subsidiary of the Company).

ii) The Company has pledged 51% of Paid Up Capital (including 21% of Paid Up Capital under non disposal undertaking) of JHCL with IL&FS Trust Company Limited as collateral security for the financial assistance to JHCL.

NOTE NO.5

In the opinion of Board of Directors the assets, other than fixed assets and non- current investments, have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

NOTE NO.6

Unbilled receivables under Note No.18 -"Other Current Assets" represents revenue recognized based on Percentage of completion method over and above the amount due from the customers as per the agreed payment plans.

NOTE NO.7

(a) Provident Fund - Defined contribution Plan.

All employees are entitled to Provident Fund Benefit as per law. Amount debited to financial statements is Rs. 1,29,52,921/- during the year (Previous Year Rs. 1,00,08,853/-).

(b) The Liability for Gratuity is provided on the basis of actuarial valuation made at the end of each financial year. The actuarial valuation is made on Projected Unit Credit method as per AS-15 (revised). Jaiprakash Associates Limited (JAL) (the holding company) has constituted a gratuity fund trust under the name Jaiprakash Associates Employees Gratuity Fund Trust vide Trust Deed dated 30th March,2009 for JAL and its subsidiaries and appointed SBI Life Insurance Co. Ltd. for the management of the trust funds for the benefit of employees. As a subsidiary of JAL, the company is participating in the trust fund by contributing its liability accrued up to the close of each financial year to the trust fund.

NOTE NO.8

Related Party Disclosures, as required in terms of 'Accounting Standard [AS] -18' are given below:

Relationships (Related party relationships are as identified by the Company and relied upon by the Auditors)

(a) Holding Company: Jaiprakash Associates Limited (JAL)

(b) Subsidiary Company: Jaypee Healthcare Limited (JHCL)

(c) FellowSubsidiaryCompanies:

(1) Jaiprakash Power Ventures Limited (JPVL) (Subsidiary of JAL)

(2) Jaypee Powergrid Limited (JV Subsidiary of JPVL)

(3) Himalayan Expressway Limited (HEL) (Subsidiary of JAL)

(4) Jaypee Agra Vikas Limited (Subsidiary of JAL)

(5) Jaypee Sports International Limited (JPSI) (Subsidiary of JAL)

(6) Jaypee Ganga Infrastructure Corporation Limited (Subsidiary of JAL)

(7) Bhilai Jaypee Cement Limited (JV Subsidiary of JAL)

(8) Gujarat Jaypee Cement & Infrastructure Limited (JV Subsidiary of JAL)

(9) Jaypee Assam Cement Limited (Subsidiary of JAL)

(10) Himalyaputra Aviation Limited (Subsidiary of JAL)

(11) Jaypee Arunachal Power Limited (JV Subsidiary of JAL)

(12) Sangam Power Generation Company Limited (Subsidiary of JPVL)

(13) Prayagraj Power Generation Company Limited (Subsidiary of JPVL)

(14) Jaypee Fertilizers & Industries Limited (Subsidiary of JAL)

(15) Jaypee Meghalaya Power Limited (Subsidiary of JPVL)

(16) Jaypee Cement Corporation Limited (JCCL) (Subsidiary of JAL)

(17) Jaypee Cement Cricket (India) Limited (Subsidiary of JPSI)

(18) Jaypee Cement Hockey (India) Limited (Subsidiary of JPSI)

(19) Jaiprakash Agri Initiatives Company Limited (Subsidiary of JCCL)

(20) Himachal Baspa Power Company Limited (Subsidiary of JPVL w.e.f. 14.03.2014)

(21) Himachal Karcham Power Company Limited (Subsidiary of JPVL w.e.f. 14.03.2014) (Note: Bokaro Jaypee Cement Limited ceased to be a subsidiary of JAL w.e.f 29.11.2014, consequent to sale of its entire stake of 74% in it.)

(d) Associate Companies:

(1) Jaypee Infra Ventures (A Private Company with Unlimited Liability (JIV)

(2) Jaypee Development Corporation Limited (JDCL)(Subsidiary of JIV)

(3) JIL Information Technology Limited (JILIT)(Subsidiary of JIV)

(4) Andhra Cements Limited (Subsidiary of JDCL)

(5) Gaur & Nagi Limited (Subsidiary of JILIT)

(6) Indesign Enterprises Private Limited (IEPL)(Subsidiary of JIV)

(7) Madhya Pradesh Jaypee Minerals Limited

(8) Jaiprakash Kashmir Energy Limited

(9) Sonebhadra Minerals Private Limited

(10) RPJ Minerals Private Limited

(11) Jaypee International Logistics Company Private Limited (Subsidiary of JIV)

(12) Tiger Hills Holiday Resort Private Limited (Subsidiary of JDCL)

(13) Sarveshwari Stone Products Private Limited (Subsidiary of RPJ Minerals Private Limited)

(14) Rock Solid Cement Limited (Subsidiary of RPJ Minerals Private Limited)

(15) MP Jaypee Coal Limited

(16) MP Jaypee Coal Fields Limited

(17) Anvi Hotels Private Limited (Subsidiary of JIV)

(18) Jaypee Uttar Bharat Vikas Private Limited

(19) Kanpur Fertilizers & Cement Limited

(20) Jaypee Hotels Limited (KMP based associate company)

(21) Jaypee Mining Ventures Private Limited (KMP based associate company)

(22) Ceekay Estates Private Limited (KMP based associate company)

(23) Jaiprakash Exports Private Limited (KMP based associate company)

(24) Bhumi Estate Developers Private Limited (KMP based associate company)

(25) Pac Pharma Drugs and Chemicals Private Limited (KMP based associate company)

(26) Jaypee Technical Consultants Private Limited (KMP based associate company)

(27) Jaypee Jan Sewa Sansthan ('Not for Profit' Private Limited Company) (KMP based associate company)

(28) Think Different Enterprises Private Limited (KMP based associate company)

(29) OHM Products Private Limited (KMP based associate company)

(30) Sparton Growth Fund Private Limited (KMP based associate company)

(31) iValue Advisors Private Limited (KMP based associate company)

(32) JC World Hospitality Private Limited (KMP based associate company)

(33) Dixit Holdings Private Limited (KMP based associate company)

(e) Key Managerial Personnel/Relative:

(1) Shri Manoj Gaur, Chairman cum Managing Director.

(2) Shri Sameer Gaur, Joint Managing Director.

(3) Shri Rakesh Sharma, Whole Time Director.

(4) Shri Sachin Gaur, Whole Time Director & CFO.

(5) Smt. Rekha Dixit, Whole Time Director.

(6) Shri Gaurav Jain, Whole Time Director.(w.e.f.26.05.2014)

(7) Shri Pramod Kumar Aggarwal, Whole Time Director.(w.e.f.26.05.2014)

(8) Shri Manu Bhaskar Gaur (Relative of Key Managerial Personnel)

(9) Smt. Archana Sharma (Relative of Key Managerial Personnel)

NOTE NO.9

The Yamuna Expressway Project is an integrated project which inter alia includes construction, operation and maintenance of Yamuna Expressway and right for land development of 25 million sq.mtrs. along the Expressway. Keeping this in view, segment information is not provided since the company has only one segment.

NOTE NO.10

(a) Provision for current taxation of Rs. 89,90,00,000/- (Previous year Rs. 83,94,00,000/-) towards Minimum Alternative Tax (MAT) as tax payable under section 115JB of Income Tax Act,1961 has been made.

As per the 'Framework for the Preparation and Presentation of Financial Statements' and the 'Guidance Note on Accounting for credit available in respect of Minimum Alternate Tax (MAT) under the Income Tax Act 1961', issued by the Institute of Chartered Accountants of India, the Company has recognized MAT aggregating to Rs.89,90,00,000/- as MAT credit asset for the year. This relates to MAT credit available for adjustment against normal income tax in subsequent years computed on income and tax projections and of which the Company believes there is virtual certainty of availability for future set off.

(b) Provision for Deferred Tax Liability aggregating to Rs. 73,84,53,992/-(Previous year Rs.17,34,56,859/-) has been made arising due to the timing differences on account of depreciation on fixed assets. However, the provision for deferred tax assets has not been created as a matter of prudence.

NOTE NO.11

a) All the figures have been rounded off to the nearest rupee.

b) Previous year figures have been reworked/regrouped/rearranged wherever necessary to conform to those of current year.


Mar 31, 2014

NOTE No. 1.1(a)

The redeemable Non-Convertible Debentures (NCDs) of Rs.10,00,000/- each aggregating to Rs. 400 Crores, mentioned at (ii) above, are secured by subservient charge on (i) 41 KM land of Yamuna Expressway, (ii) Land for Development admeasuring approx. 1032.7518 acres at Mirzapur, 150 acres at Jaganpur and 151.0063 acres at Tappal (iii) all the moveable properties (including all receivables/ revenues) relating to the Yamuna Expressway both present and future and (iv) personal guarantee of Shri Manoj Gaur, Shri Sunil Kumar Sharma and Shri Sameer Gaur.

Note No.1.1(b)

The redeemable Non-Convertible Debentures (NCDs) of Rs.10,00,000/- each aggregating to Rs. 500 Crores, mentioned at (iii) above, are secured by exclusive charge on (i) mortgage of land and building admeasuring 9.86 acres of company''s corporate office at Noida (ii) Letter of comfort from Jaiprakash Associates Limited and (iii) personal guarantee of Shri Manoj Gaur, Shri Sunil Kumar Sharma and Shri Sameer Gaur.

Note No.1.1(c)

The redeemable Non-Convertible Debentures (NCDs) of Rs.10,00,000/- each aggregating to Rs. 400 Crores, mentioned at (iv) above, are secured by exclusive charge on (i) mortgage of land admeasuring 100.0179 acres at Tappal (ii) second pari passu charge by mortgage of land and building admeasuring 9.86 acres of company''s corporate office at Noida (iii) Letter of comfort from Jaiprakash Associates Limited (iv) Corporate Guarantee of Jaiprakash Associates Limited and (v) personal guarantee of Shri Manoj Gaur, Shri Sunil Kumar Sharma and Shri Sameer Gaur.

NOTE No. 1.2(a)

IDBI Bank has sanctioned a Rupee term loan facility aggregating to Rs 6,600 Crores (Rs 4,800 Crores sanctioned/underwritten by IDBI and Rs 1,800 Crores to be syndicated by IDBI ) for refinancing of existing Rupee Term Loan of the company.Pursuant to said Rupee term loan facility,IDBI led consortium has disbursed a sum of Rs 5,650 Crores as on 31.03.2014 which has been utilized for refinancing of the existing rupee term loan of Rs 5,400 Crores. IDBI led consortium plans to disburse another Rs 900 Crores to prepay the balance outstanding of ICICI Bank & IIFCL.

Note No.1.2(b)

The Term Loan from the IDBI led consortium Banks is secured by way of first charge on (i) mortgage of about 41 KM land of Yamuna Expressway (ii) hypothecation of all the movables of the company (iii) the company''s book debts and receivables (iv) pledge of 51% shares of the issued share capital of the Company (v) first charge ranking pari-passu on mortgage on part of Land for Development at Mirzapur,Jaganpur,Agra & Tappal having a valuation cover of 1.2 times for Rs 2000 Crores and 2 times for Rs 4600 Crores and (vi) personal guarantee of Shri Manoj Gaur.

Note No.1.2(c)

The Term Loans from the ICICI Bank and IIFCL pending prepayment are secured by way of registered mortgage ranking pari passu on (i) about 41 KM land of Yamuna Expressway (ii) Land for Development admeasuring approximately 749.4060 acres at Mirzapur, 433.3458 acres at Jaganpur & 151.0063 acres at Tappal (iii) charge on all the moveable properties (including all receivables/ revenues),Intangible Assets relating to the Yamuna Expressway both present and future (iv) pledge of 51% shares of the issued share capital of the Company held by Jaiprakash Associates Limited (JAL) and (v) personal guarantee of Shri Manoj Gaur.

NOTE No. 2

As at As at 31.03.2014 31.03.2013

Contingent Liabilities (to the extent not provided for):

a) Claims against the Company not acknowledged as debts: 87,91,000 28,00,000

b) Outstanding amount of Bank Guarantees: 214,37,00,000 2,37,00,000

(Including BGS issued by Jaiprakash Associates Limited Rs 212,00,00,000/-)

c) The Company is entitled fortax holiday for 10 years effective F.Y 2008-09(A.Y 2009-10) u/s 80IA(4)(i) read with explanation (a) of the Income Tax Act 1961. However, the Income Tax Department has issued a show cause u/s 263 of the said Act and the assessment proceedings for the Assessment Year 2009- 10, been set aside, to be made de-novo. Accordingly, the Company''s claim for Assessment Year 2011-12 has also not been accepted by the Income Tax Department u/s 80IA(4)(i) read with explanation (a) of the said Act. Tax Value of matters under appeal is estimated at Rs. 361,70,00,972/- (including Rs. 25,88,42,718/- relating to TDS for A.Y 2011-12 to A.Y 2013-14). The Company has been legally advised that based on the decision of the Appellate authorities and the interpretation of relevant tax provisions, the additions made in the assessments are likely to be set aside or substantially reduced.

Without prejudice to the Company''s claim u/s 80IA(4)(i) read with explanation (a), the company is alternatively eligible for deduction u/s 80IA (6). Accordingly, in compliance of the provisions contained therein, a ''Special Reserve'' aggregating Rs. 2800,69,08,052 (F.Y.2008-09 Rs. 255,36,26,035/-; F.Y. 2009- 10 Rs. 362,48,77,424/-; F.Y.2010-11 Rs. 1168,12,74,807/- & F.Y.2011-12 Rs. 1014,71,29,786/-) has been created during the year for the respective years. Since the said sum has been utilized by the Company for development of the infrastructure facility (the Yamuna Expressway) during the respective years, an aggregate amount of Rs. 2800,69,08,052/- (F.Y. 2008-09 Rs. 255,36,26,035/- ;F.Y2009-10Rs. 362,48,77,424/-; F.Y.2010-11 Rs. 1168,12,74,807/- & F.Y.2011-12 Rs. 1014,71,29,786/-) has been transferred from ''Special Reserve Account'' to ''Special Reserve utilization Account'' during the year, for the respective years.

NOTE NO.3

Commitments;

Estimated amount of contracts, remaining to be executed on capital account: Rs. 164 Crores. (Previous Year Rs. 37 Crores).

NOTE NO.4

a) The Company has provided a letter of comfort to ICICI Bank Plc, U.K. and ICICI Bank, Canada, in respect of financial assistance, equivalent to USD 50 million each, to Jaiprakash Associates Limited(JAL). In the event of default, if any, in repayment of said facilities the liability of the lenders of the Company shall have priority.

b) The Company has mortgaged 106.4935 acres of land situated at Noida in favour of ;

(i) IDBI Trusteeship Services Ltd. - 40.1735 acres for the term loan of Rs. 850 Crores provided by the Standard Chartered Bank to JAL.

(Out of the said 40.1735 acres of land, the Company has entered into an Agreement to Sell'' dated 15th December, 2009 for 15.1695 acres of land with JAL and has received the entire sale consideration. The Company has requested for substitution of the mortgagor for the said land, which is under consideration by the bank).

(ii) Axis Trustee Services Limited- 28.12 acres for a term loan aggregating to Rs. 600 Crores, (Axis Bank Limited- Rs. 350 Crores, The South Indian Bank Limited –Rs. 100 Crores and State Bank of Travencore - Rs. 150 Crores) availed by JAL for which a ''sub lease deed'' was executed on 15th December,2009 with JAL and the entire sales consideration has been received.

(iii) HDFC Limited - 38.20 acres for a term loan of Rs. 450 Crores sanctioned by HDFC Ltd to JAL for which a ''sub lease deed'' was executed with Jaypee Hotels Limited (since merged with JAL) on 12th January, 2006 and the entire sales consideration has been received.

c) The Company has mortgaged 100 acres of land situated at Tappal in favour of ICICI Bank Limited for term loan of Rs. 1500 Crores sanctioned by ICICI Bank Ltd to JAL.

d) The Company has given an Undertaking to ICICI Bank Ltd to exercise the option to purchase the outstanding amount of the facility of Rs. 250 crores sanctioned by ICICI Bank Ltd to M/s Jaypee Sports International Ltd, a fellow subsidiary Company, by way of Optionally Convertible Cumulative Redeemable Preference Shares (OCCRPS), after five years with effect from F.Y.2010-11 or under the circumstances as stipulated under the terms and conditions of the sanction.

NOTE NO.5

Corporate Undertaking and Securities for Subsidiaries:

a) The Company has given a shortfall undertaking to Yes Bank Limited in respect of financial assistance of Rs. 325 Crores to Jaypee Healthcare Limited (JHCL) (Subsidiary of the Company).

b) The Company has pledged 51% of Paid Up Capital (Previous Year Nil) (including 21% of Paid Up Capital under non disposal undertaking) of JHCL with IL&FS Trust Company Limited as collateral security for the financial assistance to JHCL.

NOTE NO.6

In the opinion of Board of Directors the assets, other than fixed assets and non- current investments, have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

NOTE NO.7

Unbilled receivables under Note No.18 –"Other Current Assets" represents revenue recognized based on Percentage of completion method over and above the amount due from the customers as per the agreed payment plans.

NOTE NO.8

(a) Provident Fund - Defined contribution Plan.

All employees are entitled to Provident Fund Benefit as per law. Amount debited to financial statements is Rs.1,00,08,853/- during the year (Previous YearRs. 86,36,059/-).

(b) The Liability for Gratuity is provided on the basis of actuarial valuation made at the end of each financial year. The actuarial valuation is made on Projected Unit Credit method as per AS-15 (revised). Jaiprakash Associates Limited (JAL) (the holding company) has constituted a gratuity fund trust under the name Jaiprakash Associates Employees Gratuity Fund Trust vide Trust Deed dated 30th March,2009 for JAL and its subsidiaries and appointed SBI Life Insurance Co. Ltd. for the management of the trust funds for the benefit of employees. As a subsidiary of JAL, the company is participating in the trust fund by contributing its liability accrued up to the close of each financial year to the trust fund.

(c) Provision has been made for Gratuity and Leave Encashment as per actuarial valuation as below (Previous year figures are mentioned in brackets):

NOTE No. 9

Related Party Disclosures, as required in terms of ''Accounting Standard [AS] -18'' are given below:

Relationships (Related party relationships are as identified by the Company and relied upon by the Auditors)

(a) Holding Company : Jaiprakash Associates Limited (JAL)

(b) Subsidiary Company : Jaypee Healthcare Limited (JHCL)

(c) Fellow Subsidiary Companies:

(1) Jaiprakash Power Ventures Limited (JPVL)

(2) Jaypee Powergrid Limited (subsidiary of JPVL)

(3) Himalyan Expressway Limited

(4) Jaypee Agra Vikas Limited

(5) Jaypee Sports International Limited

(6) Jaypee Ganga Infrastructure Corporation Limited

(7) Bhilai Jaypee Cement Limited

(8) Bokaro Jaypee Cement Limited

(9) Gujarat Jaypee Cement & Infrastructure Limited

(10) Jaypee Assam Cement Limited.

(11) Himalyaputra Aviation Limited.

(12) Jaypee Arunachal Power Limited

(13) Sangam Power Generation Company Limited

(14) Prayagraj Power Generation Company Limited

(15) Jaypee Fertilizers & Industries Limited

(16) Jaypee Meghalaya Power Limited

(17) Jaypee Cement Corporation Limited

(18) Jaypee Cement Cricket (India) Limited

(19) Jaypee Cement Hockey (India) Limited

(20) Jaiprakash Agri Initiatives Company Limited

(21) Jaypee Uttar Bharat Vikas Private Limited

(22) Kanpur Fertilizers & Cement Limited

(23) Himachal Baspa Power Company Limited (w.e.f. 14.03.2014)

(24) Himachal Karcham Power Company Limited (w.e.f.14.03.2014)

(d) Associate Companies:

(1) Jaypee Infra Ventures (A Private Company with Unlimited Liability)(JIV)

(2) Jaypee Development Corporation Limited (JDCL)(subsidiary of JIV)

(3) JIL Information Technology Limited (JILIT)(subsidiary of JIV)

(4) Andhra Cements Limited (subsidiary of JDCL)

(5) Gaur & Nagi Limited (subsidiary of JILIT)

(6) Indesign Enterprises Private Limited (subsidiary of JIV)

(7) Madhya Pradesh Jaypee Minerals Limited

(8) Jaiprakash Kashmir Energy Limited

(9) Sonebhadra Minerals Private Limited

(10) RPJ Minerals Private Limited

(11) Jaypee International Logistics Company Private Limited (subsidiary of JIV)

(12) Tiger Hills Holiday Resort Private Limited (subsidiary of JDCL)

(13) Sarveshwari Stone Products Private Limited (subsidiary of RPJ Minerals Private Limited)

(14) Rock Solid Cement Limited (subsidiary of RPJ Minerals Private Limited)

(15) MP Jaypee Coal Limited

(16) MP Jaypee Coal Fields Limited

(17) Anvi Hotels Private Limited (subsidiary of JIV)

(e) Key Managerial Personnel:

(1) Shri Manoj Gaur, Chairman cum Managing Director.

(2) Shri Sameer Gaur, Joint Managing Director.

(3) Shri Rakesh Sharma, Managing Director.

(4) Shri Sachin Gaur, Whole Time Director & CFO.

(5) Smt. Rekha Dixit, Whole Time Director.

NOTE NO.10

The Yamuna Expressway Project is an integrated project which inter alia includes construction, operation and maintenance of Yamuna Expressway and right for land development of 25 million sq.mtrs. along the Expressway. Keeping this in view, segment information is not provided since the company has only one segment.

NOTE NO.11

(a) Provision for current taxation of Rs. 83,94,00,000/-(Previous yearRs. 173,70,00,000/- ) towards Minimum Alternative Tax (MAT) as tax payable under section 115JB of Income Tax Act,1961 has been made. The MAT paid by the company for the year is allowed to be carried forward for a period upto next ten years to be adjusted against the normal tax payable, if any, in those years.

(b) Provision for Deferred Tax Liability aggregating to Rs. 362,12,78,145/-(including Rs. 344,78,21,286/- for earlier years) has been made arising due to the timing differences on account of depreciation on fixed assets. However, the provision for deferred tax assets has not been created as a matter of prudence.

NOTE NO.12

a) All the figures have been rounded off to the nearest rupee.

b) Previous year figures have been reworked/regrouped/rearranged wherever necessary to conform to those of current year.


Mar 31, 2013

NOTE No. 1.1(a)

The redeemable Non-Convertible Debentures (NCDs) of Rs. 10,00,000/- each aggregating to Rs. 600 Crores, mentioned at (i) & (ii) above, are secured by subservient charge on 41 KM land of Yamuna Expressway, Land for Development admeasuring approx. 1032.7518 acres at Mirzapur, 150 acres at Jaganpur and 151.0063 acres at Tappal, and all the moveable properties (including all receivables/revenues) relating to the Yamuna Expressway both present and future and personal guarantee of Shri Manoj Gaur, Shri Sunil Kumar Sharma and Shri Sameer Gaur.

NOTE No. 1.1(b)

The redeemable Non-Convertible Debentures (NCDs) of Rs.10,00,000/- each aggregating to Rs. 500 Crores, mentioned at (iii)above, are secured by exclusive charge on mortgage of land and building admeasuring 9.86 acres of company''s corporate office at Noida, Letter of comfort from Jaiprakash Associates Limited and personal guarantee of Shri Manoj Gaur, Shri Sunil Kumar Sharma and Shri Sameer Gaur

NOTE No. 1.2(a)

IDBI Bank has sanctioned a Rupee term loan facility aggregating to Rs. 6,600 Crores (Rs. 4,800 Crores sanctioned/underwritten by IDBI and Rs. 1,800 Crores to be syndicated by IDBI) for refinancing of existing Rupee Term Loan of the company. Pursuant to said Rupee term loan facility,IDBI Bank has disbursed a sum of Rs. 3,900 Crores as on 31.03.2013 which has been utilized for refinancing of the existing rupee term loan (excluding ICICI Bank & IIFCL) of Rs. 3829.09 Crores. The Rupee Term Loan of ICICI Bank & IIFCL aggregating to Rs. 2712.62 Crores shall be prepaid out of the balance disbursement.

NOTE No. 1.2(b)

The Term Loans from the ICICI Bank and IIFCL pending prepayment are secured by way of registered mortgage ranking pari passu on (i) about 41 KM land of Yamuna Expressway (ii) Land for Development admeasuring approximately 1032.7518 acres at Mirzapur, 150 acres at Jaganpur & 151.0063 acres at Tappal (iii) charge on all the moveable properties (including all receivables/revenues),Intangible Assets relating to the Yamuna Expressway both present and future, (iv) pledge of 51% shares of the issued share capital of the Company held by Jaiprakash Associates Limited (JAL) and (v) personal guarantee of Shri Manoj Gaur.

NOTE No. 1.2(c)

The Term Loan from the IDBI Bank is secured by way of first charge on (i) mortgage of about 41 KM land of Yamuna Expressway (ii) hypothecation of all the movables of the company (iii) the company''s book debts and receivables,(iv) pledge of 51% shares of the issued share capital of the Company (v) first charge ranking pari-passu on mortgage on part of Land for Development at Mirzapur,Jaganpur,Agra & Tappal having a valuation cover of 1.2 times for Rs. 2000 Crores and 2 times for Rs. 4600 Crores and (vi) personal guarantee of Shri Manoj Gaur.

NOTE No. 2 A

Pursuant to Project Transfer Agreement dated 27th November, 2012, entered between the Company and Jaypee Healthcare Limited (JHCL) (100% subsidiary of the company), the company has transferred all assets and liabilities of Jaypee Medical Center (Hospital) to Jaypee Healthcare Limited for a consideration of Rs. 175,88,34,400/- which has been satisfied by issue of 17,58,83,440 Equity Shares of Rs. 10 each at par by JHCL.

NOTE No. 3

Contingent Liabilities & Commitments (to the extent not provided for):

a) Claim against the Company not acknowledged as debts: Rs. 28,00,000/- (Previous Year Rs. 4,60,963/-).

b) Outstanding amount of Bank Guarantees: Rs. 2,37,00,000/- (Previous Year Rs. 23,14,00,000/-).

c) Income Tax (TDS) matters under Appeal are as below:

S.No. Assessment Year Tax Demand (Rs.) Tax Deposited (Rs.)

i 2008-09 8,78,670 75,000

ii 2009-10 4,93,100 2,50,000

NOTE No. 4

Outstanding Letters of credit : Nil (Previous year - Rs. 7.84 Crores) Margin Money against the same : Nil (Previous year - Rs. 7.84 Crores)

NOTE No. 5

Estimated amount of contracts, remaining to be executed on capital account (net of advances) is Rs. 37 Crores. (Previous Year Rs. 39 Crores).

NOTE No. 6

The Company has provided a letter of comfort to ICICI Bank. UK Plc., and ICICI Bank, Canada, in respect of financial assistance, equivalent to USD 50 million each, to Jaiprakash Associates Limited. In the event of default, if any, in repayment of said facilities the liability of the lenders of the Company shall have priority.

NOTE No. 7

The Company has mortgaged 106.4935 acres of land situated at Noida in favour of ;

(i) IDBI Trusteeship Services Ltd. - 40.1735 acres :

(a) for the benefit of Debentureholder(s) of 9000 Secured Redeemable Non-Convertible Debentures aggregating to Rs. 900 Crores issued by Jaiprakash Associates Limited (outstanding Rs. 75 Crores).

(b) for the Term Loan of Rs. 850 Crores provided by the Standard Chartered Bank to Jaiprakash Associates Limited.

Out of the said 40.1735 acres of land, the Company has entered into an ''Agreement to Sell'' dated 15th December, 2009 for 15.1695 acres of land with Jaiprakash Associates Limited and has received the entire sale consideration. The Company has requested for substitution of the mortgagor for the said land, which is under consideration by the bank.

(ii) Axis Trustee Services Limited- 28.12 acres :

for a term loan aggregating to Rs. 600 Crores, sanctioned by Axis Bank Limited- Rs. 350 Crores, The South Indian Bank Limited -Rs. 100 Crores and State Bank of Travencore - Rs. 150 Crores to Jaiprakash Associates Limited for which a ''sub lease deed'' was executed on 15th December,2009 with Jaiprakash Associates Limited and the entire sales consideration has been received.

(iii) HDFC Limited - 38.20 acres :

for a term loan of Rs. 450 Crores sanctioned by HDFC Ltd to Jaiprakash Associates Limited (JAL) for which a ''sub lease deed'' was executed with Jaypee Hotels Limited (since merged with JAL) on 12th January, 2006 and the entire sales consideration has been received.

NOTE No. 8

The Company has given an Undertaking to ICICI Bank Ltd to exercise the option to purchase the outstanding amount of the facility of Rs. 250 crores sanctioned by ICICI Bank Ltd to M/s Jaypee Sports International Ltd(JPSI), a fellow subsidiary Company, by way of Optionally Convertible Cumulative Redeemable Preference Shares (OCCRPS), after five years with effect from F.Y 2010-11 or under the circumstances as stipulated under the terms and conditions of the sanction.

NOTE No. 9

In the opinion of Board of Directors the assets, other than fixed assets and non-current investments, have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

NOTE No. 10

Incidental Expenditure during Construction Pending Allocation has been prepared and grouped under capital work in progress as per Note No. 10A.

NOTE No. 11

Unbilled receivables under Note No. 18 -"Other Current Assets" represents revenue recognized based on Percentage of completion method over and above the amount due from the customers as per the agreed payment plans.

NOTE No. 12

(a) Provident Fund - Defined contribution Plan.

All employees are entitled to Provident Fund Benefit as per law. Amount debited to financial statements is Rs. 86,36,059/- during the year (Previous Year Rs. 65,96,926/-).

(b) The Liability for Gratuity is provided on the basis of actuarial valuation made at the end of each financial year. The actuarial valuation is made on Projected Unit Credit method as per AS-15 (revised). Jaiprakash Associates Limited (JAL) (the holding company) has constituted a gratuity fund trust under the name Jaiprakash Associates Employees Gratuity Fund Trust vide Trust Deed dated 30th March,2009 for JAL and its subsidiaries and appointed SBI Life Insurance Co. Ltd. for the management of the trust funds for the benefit of employees. As a subsidiary of JAL, the company is participating in the trust fund by contributing its liability accrued upto the close of each financial year to the trust fund.

NOTE No. 13

Related Party Disclosures, as required in terms of ''Accounting Standard [AS] -18'' are given below: Relationships (Related party relationships are as identified by the Company and relied upon by the Auditors)

(a) Holding Company : Jaiprakash Associates Limited (JAL)

(b) Subsidiary Company : Jaypee Healthcare Limited (w.e.f 30.10.2012)

(c) Fellow Subsidiary Companies:

(1) Jaiprakash Power Ventures Limited (JPVL)

(2) Jaypee Powergrid Limited (subsidiary of JPVL)

(3) Himalyan Expressway Limited

(4) Jaypee Agra Vikas Limited

(5) Jaypee Sports International Limited

(6) Jaypee Ganga Infrastructure Corporation Limited

(7) Bhilai Jaypee Cement Limited

(8) Bokaro Jaypee Cement Limited

(9) Gujarat Jaypee Cement & Infrastructure Limited

(10) Jaypee Assam Cement Limited (w.e.f. 30.08.2011)

(11) Himalyaputra Aviation Limited (w.e.f. 23.07.2011)

(12) Jaypee Arunachal Power Limited (subsidiary of JPVL)

(13) Sangam Power Generation Company Limited (subsidiary of JPVL)

(14) Prayagraj Power Generation Company Limited (subsidiary of JPVL)

(15) Jaypee Fertilizers & Industries Limited

(16) Jaypee Meghalaya Power Limited (subsidiary of JPVL)

(17) Jaypee Cement Corporation Limited (JCCL)

(18) Jaypee Cement Cricket (India) Limited

(19) Jaypee Cement Hockey (India) Limited

(20) Jaiprakash Agri Initiatives Company Limited (subsidiary of JCCL)

(d) Associate Companies:

(1) Jaypee Infra Ventures (A Private Company with Unlimited Liability)(JIV)

(2) Jaypee Development Corporation Limited (JDCL)(subsidiary of JIV)

(3) JIL Information Technology Limited (JILIT)(subsidiary of JIV)

(4) Andhra Cements Limited (subsidiary of JDCL) (w.e.f. 10.02.2012)

(5) Gaur & Nagi Limited (subsidiary of JILIT)

(6) Indesign Enterprises Private Limited (IEPL)(subsidiary of JIV)

(7) Madhya Pradesh Jaypee Minerals Limited

(8) Jaiprakash Kashmir Energy Limited

(9) Sonebhadra Minerals Private Limited

(10) RPJ Minerals Private Limited

(11) Jaypee International Logistics Company Private Limited (subsidiary of JIV)

(12) Tiger Hills Holiday Resort Private Limited (subsidiary of JDCL)

(13) Sarveshwari Stone Products Private Limited (subsidiary of RPJ Minerals Private Ltd.)

(14) Rock Solid Cement Limited (subsidiary of RPJ Minerals Private Limited)

(15) MP Jaypee Coal Limited

(16) MP Jaypee Coal Fields Limited

(17) Anvi Hotels Private Limited (subsidiary of JIV)

(18) Jaypee Uttar Bharat Vikas Private Limited (w.e.f.21.06.2010)

(19) Kanpur Fertilizers & Cement Limited (subsidiary of Jaypee Uttar Bharat Vikas Private Limited) (w.e.f. 26.09.2010)

(20) Jaypee Hotels Limited (JHL)

(21) Milestone Home Finance Pvt.Ltd. (subsidiary of JHL w.e.f 28.09.12)

(e) Key Managerial Personnel:

(1) Shri Manoj Gaur, Chairman cum Managing Director.

(2) Shri Sameer Gaur, Joint Managing Director

(3) Shri Rakesh Sharma, Managing Director

(4) Shri Sachin Gaur, Whole Time Director & CFO.

(5) Smt. Rekha Dixit, Whole Time Director

NOTE NO.14

The Yamuna Expressway Project is an integrated project which inter alia includes construction, operation and maintenance of Yamuna Expressway and right for land development of 25 million sq.mtrs. along the expressway. Keeping this in view, segment information is not provided since the company has only one segment.

NOTE No. 15

(a) Provision for current taxation of Rs. 173,70,00,000/-(Previous year Rs. 319,61,00,000/- ) towards Minimum Alternative Tax (MAT) as tax payable under section 115JB of Income Tax Act,1961 has been made. The MAT paid by the company for the year is allowed to be carried forward for a period upto next ten years to be adjusted against the normal tax payable, if any, in those years.

(b) Provision for deferred Tax has not been made as deferred tax liability arising due to the timing differences during the tax holiday period is less than the deferred tax assets as per estimation done by the company. However the provision for deferred tax assets has not been created as a matter of prudence.

NOTE No. 16

a) All the figures have been rounded off to the nearest rupee.

b) Previous year figures have been reworked/regrouped/rearranged wherever necessary to conform to those of current year.


Mar 31, 2012

Basis of accounting

The financial statements are prepared under historical cost convention, on accrual basis, on the principles of going concern, in accordance with the generally accepted accounting principles, the relevant accounting standards and the relevant guidance notes issued by the Institute of Chartered Accountants of India (ICAI) and the applicable provisions of the Companies Act, 1956.

Revenue Recognition

Under the terms of the Concession Agreement with Yamuna Expressway Industrial Development Authority (YEA), the Company has undertaken the work of development, operation and maintenance of the six – lane access controlled expressway along with service road and associated structures etc. between Noida and Agra and the revenues are derived there from at present mainly by way of transfer of constructed properties & transfer of developed and undeveloped land allotted under the said Concession Agreement along the proposed expressway. These revenues are recognised as under:

Revenue from real estate development of constructed properties is recognised on the "percentage of completion method". Total sale consideration as per the legally enforceable agreements to sell entered into is recognised as revenue based on the percentage of actual project costs incurred to total estimated project cost, subject to such actual cost incurred being 30 percent or more of the total estimated project cost. Project cost includes cost of land, estimated cost of construction and development of such properties. The estimates of the saleable area and costs are reviewed periodically and effect of any change in such estimates is recognised in the period such change is determined. Where aggregate of the payment received from customers provide insufficient evidence of their commitment to make the complete payment, revenue is recognised only to the extent of payment received.

Revenue from sale/sub-lease of undeveloped land is recognised when full consideration is received against agreement to sell / sub- lease; all significant risks and rewards are transferred to the customer and possession is handed over.

Revenue from sale/sub-lease of developed land/plot is recognised based on the "percentage of completion method" when a firm agreement has been entered into and 30 percent or more of the consideration is received and where no significant uncertainty exists regarding the amount of the consideration that will be derived from such sales and it is not unreasonable to expect ultimate collection, and all significant risks and rewards are transferred to the customer.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and reported amount of revenues and expenses during the reporting period. Differences between actual results and estimates are recognised in the period in which the results are known/materialise.

Fixed Assets

Fixed Assets are stated at cost of acquisition or construction inclusive of freight, erection & commissioning charges, duties and taxes and other incidental expenses related thereto.

Capital Work in Progress

Capital work-in-progress represents capital expenditure incurred in respect of Yamuna Expressway Project and is carried at cost. Cost includes land, related acquisition expenses, construction costs, borrowing costs capitalized and other direct expenditure.

Depreciation

Depreciation on Fixed Assets is provided on Straight Line Method as per the classification and in the manner specified in Schedule XIV to the Companies Act, 1956.

Employee Benefits.

Employee Benefits are provided in the books as per AS-15 (revised) in the following manner:

(i) Provident Fund and Pension contribution–as a percentage of salary/wages is a Defined Contribution Scheme.

(ii) Gratuity and Leave Encashment is a defined benefit obligation. The liability is provided for on the basis of actuarial valuation made at the end of each financial year. The actuarial valuation is made on Projected Unit Credit method.

Inventories

Inventories are valued as under:

i) Stores & Spares : At Weighted Average Cost.

ii) Project under Development : As under

The stock of land and plot is valued at cost (average cost) or as revalued on conversion to stock-in-trade, as applicable. Cost shall include acquisition cost of land, internal development cost and external development charges, construction cost, material costs, cost of services etc.

Foreign Currency Transactions:

i) Monetary assets and liabilities related to foreign currency transactions and outstanding at the close of the year are expressed in Indian Rupees at the rate of exchange prevailing on the date of Balance Sheet.

ii) Transactions in foreign currency are recorded in the books of accounts in Indian Rupees at the rate of exchange prevailing on the date of transaction.

Lease Rentals:

i) Operating Leases: Rentals are expensed with reference to lease

ii) Finance Leases: The lower of the fair value of the assets or present value of the minimum lease rentals is capitalised as fixed assets with corresponding amount shown as lease liability. The principal component in the lease rental is adjusted against the lease liability and the interest component is charged to Statement of Profit & Loss.

Miscellaneous Expenditure

Preliminary Expenses are written off in the year in which it is incurred, in terms of Accounting Standard (AS – 26).

Expenditure during Construction Period

Expenditure incurred on the project during construction is capitalized to project asset(s) on commissioning.

Earnings Per Share

Basic Earnings Per Equity Share is computed by dividing the net profit or loss after tax by the weighted average number of Equity Shares outstanding during the year. Diluted earnings per equity share is computed by dividing adjusted net profit after tax by the aggregate of weighted average number of equity shares and dilutive potential equity shares outstanding during the year.

Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that takes substantial period of time to get ready for intended use or sale. All other borrowing costs are charged to revenue.

Taxes on Income

Provision for current tax is being made after taking into consideration benefits admissible to the company under the provisions of the Income Tax Act, 1961.

Deferred Tax Assets and Deferred Tax Liability are computed by applying tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet Date.

Impairment of Assets

Management periodically assesses using external and internal sources whether there is an indication that assets may be impaired. Impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from the continuing use of the assets and its eventual disposal. The impairment loss to be expensed is determined as the excess of the carrying amount over the higher of the asset's net sale prices or present value as determined above.

Provisions, Contingent Liabilities and contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2011

1) Contingent Liabilities not provided for in respect of:

a) Outstanding amount of Bank Guarantees: Rs.23,14,00,000/- (Previous Year Rs.2,42,00,000/- ).

b) Claim against the Company not acknowledged as debts: Rs.83,967/-(Previous year Nil ).

c) Income Tax (TDS) liability that may arise in respect of matters in appeals Rs.13,71,770/- (Amount deposited under protest Rs.3,25,000/-) [Previous year 6,43,810/-(Amount deposited under protest Rs.3,25,000/-)].

2) Estimated amount of contracts, remaining to be executed on capital account (net of advances) is 1009 Crores. (Previous Year Rs.2612 Crores)

3) The Company has provided a letter of comfort to ICICI Bank. UK Plc., and ICICI Bank, Canada, in respect of financial assistance, equivalent to USD 50 million each, to Jaiprakash Associates Limited. In the event of default, if any, in repayment of said facilities the liability of the lenders of the Company shall have priority.

4) a) The Company has mortgaged 40 acres of land situated at Noida in favour of IDBI Trusteeship Securities Limited for the benefit of debenture holder(s) of 9000 Secured Redeemable Non - Convertible Debentures aggregating to Rs. 900 Crores issued by Jaiprakash Associates Limited.

b) Out of the said 40 acres of land, the Company has entered into an 'Agreement to Sell' dated 15th December, 2009 for 15 acres of land with Jaiprakash Associates Limited. The Company has requested for substitution of mortgage for the said land, which is under consideration by the bank.

5) The Company has given an Undertaking to ICICI Bank Ltd to exercise the option to purchase the outstanding amount of the facility of Rs. 250 crores sanctioned by ICICI Bank Ltd to M/s Jaypee Sports International Ltd(JPSI), a fellow subsidiary Company, by way of Optionally Convertible Cumulative Redeemable Preference Shares (OCCRPS), after five years or under the circumstances as stipulated under the terms and conditions of the sanction.

6) a) The Term Loan from the lenders is secured by way of registered mortgage ranking pari passu on (i) about 41 KM land for constructing the Yamuna Expressway (ii) Land for Development admeasuring approximately 1032.7518 acres at Mirzapur and 150 acres each at Dankaur & Tappal (iii) charge on all the moveable properties (including all receivables/ revenues) relating to the Yamuna Expressway both present and future, (iv) pledge of 51% shares of the issued share capital of the Company held by Jaiprakash Associates Limited (JAL) and (v) personal guarantee of Shri Manoj Gaur, Chairman cum Managing Director.

b) 2% redeemable Non-Convertible Debentures (NCDs) of Rs.10,00,000/- each aggregating to Rs.1000 Crores are secured by subservient charge on 41 KM land for constructing the Yamuna Expressway, Land for Development admeasuring approx. 1032.7518 acres at Mirzapur and 150 acres each at Dankaur and Tappal, and all the moveable properties (including all receivables/ revenues) relating to the Yamuna Expressway both present and future, Corporate guarantee of Jaiprakash Associates Limited and personal guarantee of the Directors namely Shri Manoj Gaur, Shri Sunil Kumar Sharma and Shri Sameer Gaur, and are redeemable during 2012-14 in five equal installments along with redemption premium at the rate of approximately 10.50% p.a.

7) The Company has repaid during the year the Secured Redeemable Non Convertible Debentures of Rs. 500 Crores subscribed by Axis Bank Ltd on interest reset date i.e.27th May 2010. The Company has also prepaid Rs. 700 crores to ICICI Bank Ltd against their outstanding out of the loan of Rs. 3700 Crores as sanctioned by the consortium of Banks in January, 2010.

8) The Company had raised Rs.1,650 Crores from capital market through Initial Public Offer in May, 2010. Jaiprakash Associates Limited (JAL), the holding company had also simultaneously made an offer for sale of 6,00,00,000 Equity Shares of the Company held by it. The Company had issued 16,29,33,497 Equity Shares of Rs.10/- each subsequently. The utilization of proceeds of Initial Public Offer is in accordance with the prospectus.

9) In the opinion of Board of Directors, the "Current Assets, Loans and Advances" have a value on realization in the ordinary course of business, at least equal to the amount at which they are stated in the Balance Sheet.

10) Incidental Expenditure During Construction Pending Allocation in Schedule "F" has been prepared giving the necessary disclosures as required under Part II of Schedule VI to the Companies Act, 1956.

11) Capital Work – In - Progress includes Cost of Land, Civil Works, Advance to Contractors and others including advance of Rs.497,18,92,862/- to Jaiprakash Associates Limited (Previous year Rs.928,25,48,030/-) Maximum balance outstanding during the year – Rs.928,25,48,030/-).

12) Interest received Rs.75,75,63,278/- (TDS of Rs.7,98,60,909/-) [Previous year Rs.9,58,14,777/- (TDS Rs.1,12,14,463/-)] on temporary placement of funds in fixed deposit with banks, has been adjusted against interest expense shown in Schedule 'F' and Schedule 'P' as per AS-16.

13) (a) Provident Fund - Defined contribution Plan All employees are entitled to Provident Fund Benefit as per law. Amount debited to financial statements is Rs.56,63,732/- during the year (Previous year Rs.44,64,575/-).

b) The Liability for Gratuity is provided on the basis of actuarial valuation made at the end of each financial year. The actuarial valuation is made on Projected Unit Credit method as per AS 15 (revised). Jaiprakash Associates Limited (JAL) (the holding company) has constituted a gratuity fund trust under the name Jaiprakash Associates Employees Gratuity Fund Trust vide Trust Deed dated 30th March,2009 for JAL and its subsidiaries and appointed SBI Life Insurance Co. Ltd. for the management of the trust funds for the benefit of employees. As a subsidiary of JAL, the company is participating in the trust fund by contributing its liability accrued upto the close of each financial year to the trust fund.

Actuarial Assumptions

(i) Discount Rate 8%

(ii) Mortality LIC (1994-96)

(iii) Turnover Rate Up to 30 years - 4%, 31-44years - 4%,

Above 44 years -4%

(iv) Future Salary Increase 8.00%

17) Related Party Disclosures, as required in terms of 'Accounting Standard [AS] - '18' are given below:

Relationships (Related party relationships are as identified by the Company and relied upon by the Auditors)

(a) Holding Company: Jaiprakash Associates Limited (JAL)

(b) Fellow Subsidiary Companies:

(1) Jaiprakash Power Ventures Limited

(2) Jaypee Powergrid Limited (Subsidiary of Jaiprakash Power Ventures Limited)

(3) Sangam Power Generation Company Limited (Subsidiary of Jaiprakash Power Ventures Limited)

(4) Prayagraj Power Generation Company Limited (Subsidiary of Jaiprakash Power Ventures Limited)

(5) Jaypee Arunachal Power Limited (Subsidiary of Jaiprakash Power Ventures Limited)

(6) Jaypee Meghalaya Power Limited (Subsidiary of Jaiprakash Power Ventures Limited)

(7) Bina Power Supply Limited (Subsidiary of Jaiprakash Power Ventures Limited)

(8) Jaypee Karcham Hydro Corporation Limited (Subsidiary of Jaiprakash Power Ventures Limited)

(9) Jaypee Ganga Infrastructure Corporation Limited

(10) Himalyan Expressway Limited

(11) Jaypee Sports International Limited

(12) Jaypee Cement Corporation Limited (wef 22.02.2011)

(13) Bhilai Jaypee Cement Limited

(14) Bokaro Jaypee Cement Limited

(15) Gujarat Jaypee Cement & Infrastructure Limited

(16) Jaypee Agra Vikas Limited

(17) Jaypee Fertilizers & Industries Limited (w.e.f.03.06.2010)

(c) Associate Companies/Concerns :

(1) Jaypee Ventures Private Limited

(2) Jaypee Development Corporation Limited (subsidiary of Jaypee Ventures Private Limited)

(3) JIL Information Technology Limited (subsidiary of Jaypee Ventures Private Limited)

(4) Gaur & Nagi Limited (subsidiary of JIL Information Technology Limited)

(5) Indesign Enterprises Pvt. Limited (subsidiary of Jaypee Ventures Private Limited)

(6) Indus Hotels UK Limited (Subsidiary of Indesign Enterprises Pvt. Limited)

(7) GM Global Mineral Mining Private Limited (Subsidiary of Indesign Enterprises Pvt. Limited) (wef 16.07.2010)

(8) Ibonshourne Limited (Subsidiary of Indesign Enterprises Pvt. Limited) (wef 13.10.2010)

(9) Jaiprakash Agri Initiatives Company Limited (subsidiary of Jaypee Ventures Private Limited)

(10) Jaypee International Logistics Company Private Limited (subsidiary of Jaypee Ventures Private Limited)

(11) Tiger Hills Holiday Resort Private Limited (subsidiary of Jaypee Development Corporation Limited)

(12) Anvi Hotels Private Limited (subsidiary of Jaypee Ventures Private Limited)

(13) Jaypee Uttar Bharat Vikas Pvt. Limited (wef 21.06.2010)

(14) Kanpur Fertilisers and Cement Limited (Subsidiary of Jaypee Uttar Bharat Vikas Pvt. Limited) (wef 26.09.2010)

(15) RPJ Minerals Private Limited

(16) Sarveshwari Stone Products Pvt. Ltd. (subsidiary of RPJ Minerals Private Limited)

(17) Rock Solid Cement Limited (subsidiary of RPJ Minerals Private Limited)

(18) Sonebhadra Minerals Private Limited

(19) MP Jaypee Coal Limited

(20) Madhya Pradesh Jaypee Minerals Limited

(21) MP Jaypee Coal Fields Limited

(22) Jaiprakash Kashmir Energy Limited

(23) Jaypee Infra Ventures (A Private Company with unlimited liability)

(24) Ceekay Estates Private Limited.

(25) Jaiprakash Exports Private Limited.

(26) Bhumi Estate Developers Private Limited.

(27) Jaypee Technical Consultants Private Limited.

Following Associate Companies have since merged with Jaypee Ventures Private Limited during the year ended 31.03.2011:

(28) Pee Gee Estates Private Limited

(29) Vinamra Housing & Constructions Private Limited

(30) Vasujai Estates Private Limited

(31) Samsun Estates Private Limited

(32) Sunvin Estates Private Limited

(33) Manumanik Estates Private Limited

(34) Arman Estate Private Limited

(35) Suneha Estates Private Limited

(d) Key Managerial Personnel (KMP):

(1) Shri Manoj Gaur, Chairman cum Managing Director.

(2) Shri Sameer Gaur, Joint Managing Director.

(3) Shri O.P.Arya, Managing Director –cum- Chief Executive Officer (upto 20.12.2010).

(4) Shri Sachin Gaur, Whole-time Director & CFO.

(5) Smt. Rita Dixit, Whole-time Director.

(6) Smt. Rekha Dixit, Whole-time Director (w.e.f. 01.06.2010).

(7) Shri Har Prasad, Whole-time Director.

(8) Shri Anand Bordia, Whole-time Director & C.F.O.(up to 31.01.2011).

(9) Shri S.K.Dodeja, Whole-time Director (up to 21.09.2010).

1 Details of guarantees for loans/NCDs taken by Jaiprakash Associates Ltd, holding company and Jaypee Sports International Limited, fellow subsidiary company from banks/ financial institutions are stated elsewhere in the Notes

2 Previous year figures are given in brackets

18) The Yamuna Expressway Project is an integrated project which interalia include construction, operation and maintenance of Yamuna Expressway and right for land development of 25 million sq.mtrs. alongwith the proposed expressway. Keeping this in view, segment information is not provided since the company has only one segment.

19) (a) Provision for current taxation of Rs.368,34,00,000/-(Previous Year Rs.99,86,00,000/-) towards Minimum Alternative Tax (MAT) as Tax Payable under section 115JB of Income Tax Act,1961 has been made. The MAT paid by the company for the year is allowed to be carried forward for a period upto next ten years to be adjusted against the normal tax payable, if any, in those years.

The above said provision includes wealth tax of Rs.3,39,000/- (Previous year Rs.3,35,000/-).

b) Provision for deferred Tax has not been made as deferred tax liability arising due to the timing differences during the tax holiday period is less than the deferred tax assets. However the provision for deferred tax assets has not been created as a matter of prudence.

21) All the figures have been rounded off to the nearest

22) Previous year figures have been reworked/regrouped/rearranged wherever necessary to conform to current year classification.


Mar 31, 2010

1) Contingent Liabilities not provided for in respect of:

a) Outstanding amount of Bank Guarantees: Rs.2,42,00,000/- (Previous year Rs.2,42,00,000/-).

b) Income Tax (TDS) matters under appeal in respect of A.Y. 2008-09 Rs.1,50,710/- & A.Y. 2009-10 Rs.4,93,100/-. Amount deposited under protest in respect of A.Y. 2008-09 Rs.75,000/- & A.Y. 2009-10 Rs.2,50,000/- (Previous year nil).

2) Estimated amount of contracts remaining to be executed on capital account (net of advances) is Rs.2612 Crores. (Previous year Rs.4605 Crores)

3) As per the Accounting Policy stated above, the real estate sales from developed plots has been recognised as revenue. The revenue from sale of 149.30 lacs sq. ft. area of built up properties under development aggregating to Gross Value of Sales of Rs.4607.22 Crore (Advance Collected Rs.1146.36 Crores (including Rs.9.44 Crore received in Foreign Exchange) has not been recognised as revenue during the year as the actual expenditure incurred thereon to total estimated project cost is less than the threshold limit of 30%.

4) Term Loan of Rs.5,221 Crore (Previous Year Rs.1,675 Cores) disbursed by the lenders is secured by way of registered mortgage on land for constructing the Yamuna Expressway and Land for Development admeasuring approx. 889 acres (439 acres at Noida and 150 acres each at Dankaur, Mirzapur and Tappal) and a charge on all the moveable Properties (including all receivables/revenues) relating to the Yamuna Expressway both present and future and pledge of 51% shares of issued share capital of the Company held by Jaiprakash Associates Limited, the holding company and personal guarantee of Shri Manoj Gaur, Chairman.

5) The Company has issued 5000, 10% Secured Redeemable Non-Convertible Debentures (NCDs) of Rs.10,00,000/- each aggregating to Rs.500 Crore secured by way of registered mortgage on land for constructing the Yamuna Expressway and Land for Development admeasuring approx. 889 acres (439 acres at Noida and 150 acres each at Dankaur, Mirzapur and Tappal) acquired for real estate development and a charge on all the moveable Properties (including all receivables/revenues) relating to the Yamuna Expressway both present and future and pledge of 51% shares of issued share capital of the Company held by Jaiprakash Associates Limited, Corporate guarantee of Jaiprakash Associates Limited and personal guarantee of Shri Manoj Gaur, Chairman.

The Company has served a notice dated 12th April 2010 on Axis Bank Ltd. for prepayment of Secured Redeemable Non Convertible Debentures (SRNCD) of Rs.500 Crores on the forthcoming interest reset date i.e. 27th May 2010.

6) a) The Company has mortgaged 50 acres of land situated at Noida in favour of Standard Chartered Bank as security for the term loan facility of Rs.600 Crore sanctioned by the bank to Jaiprakash Associates Limited.

b) The Company has provided a letter of comfort to ICICI Bank. UK Plc., and ICICI Bank, Canada, in respect of financial assistance equivalent to USD 50 million each to Jaiprakash Associates Limited. In the event of default, if any, in repayment of said facilities the liability of the lenders of the Company shall have priority.

7) a) The Company has mortgaged 40 acres of land situated at Noida in favour of IDBI Trusteeship Securities Limited for the benefit of debenture holder(s) of 9000 Secured Redeemable Non-Convertible Debentures aggregating to Rs.900 Crore issued by Jaiprakash Associates Limited.

b) Out of the said 40 acres of land, the Company has entered into an ‘Agreement to Sell dated 15th December, 2009 for 15 acres of land with Jaiprakash Associates Limited. The Company has requested for substitution of mortgage for the said land, which is under consideration by the bank.

8) The Company has raised Rs.1,650 Crore from capital market through Initial Public Offer in May, 2010. Jaiprakash Associates Limited (JAL), the holding company has also made an offer for sale of 6,00,00,000 Equity Shares of the company held by it. The Company had issued 16,29,33,497 Equity Shares of Rs.10/- each subsequently.

9) Share Issue Expenses have been grouped under "Miscellaneous Expenditure" and the total expenses, except the listing fee, shall be shared between the Company and the Selling Shareholder (JAL) in proportion to the number of Equity Shares sold to the public as part of the Fresh Issue or the Offer for Sale, as the case may be.

10) In the opinion of Board of Directors, the "Current Assets, Loans and Advances" have a value on realization in the ordinary course of business, at least equal to the amount at which they are stated in the Balance Sheet.

11) Incidental Expenditure during construction pending allocation in Schedule "E" has been prepared giving the necessary disclosures as required under Part II of Schedule VI to the Companies Act, 1956.

12) Capital Work-in-Progress includes Cost of Land, Civil Works, Advance to Contractors and others including advance of Rs.928,25,48,030/- to Jaiprakash Associates Limited (Previous year Rs.817,43,58,741/-) (Maximum balance outstanding during the year-Rs.928,25,48,030/-) and of Rs.96,00,000/- to Jaypee Ventures Private Limited (Previous year Rs.1,31,84,000/-) (Maximum balance outstanding during the year-Rs.1,31,84,000/-).

13) Interest received Rs.9,58,14,777/- (Previous year Rs.16,20,21,860/-) on temporary placement of funds in fixed deposit with banks, has been adjusted against interest expense as per AS-16.

14) Current liabilities include book overdraft Rs.2,23,00,477/- (Previous year Rs.147,89,33,045/-).

15) (a) Provident Fund-Defined Contribution Plan

All employees are entitled to Provident Fund Benefit as per law. Amount debited to financial statements is Rs.44,64,575/- during the year (Previous year Rs.20, 39,907/-).

(b) The Liability for Gratuity is provided on the basis of actuarial valuation made at the end of each financial year. The actuarial valuation is made on Projected Unit Credit Method as per AS-15 (revised). Jaiprakash Associates Limited (JAL) (the holding company) has constituted a Gratuity Fund Trust under the name Jaiprakash Associates Employees Gratuity Fund Trust vide Trust Deed dated 30th March, 2009 for JAL and its subsidiaries and appointed SBI Life Insurance Co. Ltd. for the management of the trust funds for the benefit of employees. As a subsidiary of JAL, the company is participating in the trust fund by contributing its liability accrued upto the close of each financial year to the trust fund.

16) Managerial remuneration paid to Whole Time Directors (excluding provision for gratuity and leave encashment on retirement) shown in Profit & Loss Account and Statement of Incidental Expenditure.

17) Other additional information pursuant to provisions of paragraphs 3 and 4 of Part–II of Schedule-VI to the Companies Act, 1956.

Earnings in Foreign Exchange-Refer note no. 3

18) Disclosure as required under Notification No. G.S.R. 719 (E) dated 16th November, 2007 issued by the Department of Company Affairs (As certified by the Management)

19) Related Party Disclosures, as required in terms of Accounting Standard [AS]-18 are given below:

Relationships:

(a) Holding Company: Jaiprakash Associates Limited (JAL)

(b) Fellow Subsidiary Companies:

(1) Jaiprakash Power Ventures Limited

(2) Jaypee Karcham Hydro Corporation Limited

(3) Jaypee Powergrid Limited (Joint Venture & Subsidiary of Jaiprakash Power Ventures Limited)

(4) Himalyan Expressway Limited

(5) Jaypee Ganga Infrastructure Corporation Limited

(6) JPSK Sports Private Limited

(7) Madhya Pradesh Jaypee Minerals Limited (Joint Venture with JAL).

(8) Bhilai Jaypee Cement Limited (Joint Venture with JAL)

(9) Bokaro Jaypee Cement Limited (Joint Venture)

(10) Gujarat Jaypee Cement Infrastructure Limited (Joint Venture with JAL).

(11) Bina Power Supply Company Limited (Subsidiary of Jaiprakash Power Venture Limited)

(12) Jaypee Arunachal Power Limited (Joint Venture & Subsidiary of Jaiprakash Power Venture Limited)

(13) Sangam Power Generation Company Limited. (Subsidiary of Jaiprakash Power Ventures Limited w.e.f. 23.07.09)

(14) Prayagraj Power Generation Company Limited. (Subsidiary of Jaiprakash Power Ventures Limited w.e.f. 23.07.09)

(15) Jaypee Agra Vikas Limited. (w.e.f. 16.11.09)

(c) Associate Company:

(1) Jaypee Ventures (P) Limited

(2) Jaypee Development Corporation Limited (Subsidiary of Jaypee Ventures (P) Limited).

(3) JIL Information Technology Limited (Subsidiary of Jaypee Ventures (P) Ltd.),

(4) Gaur & Nagi Limited. (Subsidiary of JIL Information Technology Limited).

(5) Jaiprakash Kashmir Energy Limited

(6) Indesign Enterprises Pvt. Limited (Subsidiary of Jaypee Ventures (P) Ltd.),

(7) Sonebhadra Minerals Pvt. Limited

(8) RPJ Minerals Pvt. Limited

(9) Jaypee Petroleum Private Limited (Subsidiary of Jaypee Ventures (P) Limited).

(10) Jaypee Hydro-Carbons Private Limited (Subsidiary of Jaypee Ventures (P) Limited)

(11) Anvi Hotels Private Limited (Subsidiary of Jaypee Ventures (P) Limited w.e.f. 01.05.2009)

(12) M.P. Jaypee Coal Limited.

(13) Sarveshwari Stone Products Pvt. Ltd. (Subsidiary of RPJ Minerals Pvt. Ltd. w.e.f. 23.10.2009)

(14) Tiger Hills Holiday Resorts Pvt. Ltd. (Subsidiary of Jaypee Development Corporation Ltd.w.e.f. 27.10.2009)

(15) Vasujai Estates Private Limited (Subsidiary of Jaypee Ventures (P) Limited w.e.f. 27.02.2010)

(16) Samsun Estates Private Limited (Subsidiary of Jaypee Ventures (P) Limited w.e.f. 27.02.2010)

(17) Sunvin Estates Private Limited (Subsidiary of Jaypee Ventures (P) Limited w.e.f. 27.02.2010)

(18) Manumanik Estates Private Limited (Subsidiary of Jaypee Ventures (P) Limited w.e.f. 27.02.2010)

(19) Arman Estates Private Limited (Subsidiary of Jaypee Ventures (P) Limited w.e.f. 27.02.2010)

(20) Suneha Estates Private Limited (Subsidiary of Jaypee Ventures (P) Limited w.e.f. 27.02.2010)

(21) Pee Gee Estates Private Limited (Subsidiary of Jaypee Ventures (P) Limited w.e.f. 27.02.2010)

(22) Vinamra Housing & Constructions Private Limited (Subsidiary of Jaypee Ventures (P) Limited w.e.f. 27.02.2010)

(23) Rock Solid Cement Limited (Subsidiary of RPJ Minerals Pvt. Limited)

(24) M.P. Jaypee Coal Fields Limited w.e.f. 04.01.2010.

(d) Key Management Personnel:

(1) Shri Manoj Gaur, Chairman

(2) Shri Sunil Kumar Sharma, Vice Chairman

(3) Shri Sameer Gaur, Director- in -Charge

(4) Shri O.P. Arya, Managing Director-cum-Chief Executive Officer

(5) Shri Sachin Gaur, Whole Time Director

(6) Smt. Rita Dixit, Whole Time Director

(7) Shri Har Prasad, Whole Time Director

(8) Shri Anand Bordia, Whole Time Director & C.F.O.

(9) Shri S.K.Dodeja, Whole Time Director

(20) The Yamuna Expressway Project is an integrated project which interalia include construction, operation and maintenance of Yamuna Expressway and right for land development of 25 million sq.mtrs. alongwith the proposed expressway. Keeping this in view, segment information is not provided since the company has only one segment.

(21) (a) Provision for taxation of Rs 99,86,00,000/- towards Minimum Alternative Tax (MAT) as Tax Payable under section 115JB of Income Tax Act,1961 has been made. The MAT paid by the company for the year is allowed to be carried forward for a period upto next ten years to be adjusted against the normal tax payable, if any, in those years. The above said provision includes wealth tax of Rs.3,35,000/- (Previous year Rs.7,25,000/-).

(b) Provision for Deferred Tax has not been made as Deferred Tax Liability arising due to the timing differences during the tax holiday period is less than the Deferred Tax Assets. However the provision for Deferred Tax Assets has not been created as a matter of prudence.

(23) All the figures have been rounded off to the nearest rupee.

(24) Previous year figures have been reworked/regrouped/rearranged wherever necessary to conform to current year classification

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