Home  »  Company  »  Jaypee Infratech Ltd  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Jaypee Infratech Ltd.

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.

 
Subscribe now to get personal finance updates in your inbox!