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Notes to Accounts of JCT Electronics Ltd.

Mar 31, 2015

1 Term loans (secured) from the Financial Institutions and Indian Banks are secured by an equitable mortgage on all the immovable properties at Mohali & Vadodara and hypothecation of the movable assets of the company, present and future, save and except prior charges on specified movables in favour of the bankers for working capital requirements.

2 Working Capital term loans from Indian Banks and working capital facilities from foreign banks are secured by first charge by way of hypothecation of raw materials, goods-in-process, finished goods, stores and spares, book debts and receivables of the Company, present and future and second charge on the immovable properties at Mohali and Vadodara.

3 In terms of the BIFR sanctioned scheme, outstanding principal amount of the working capital facilities from banks (other than banks covered under OTS as per sanctioned scheme) as on 31st March, 2007 have been converted into working capital term loans. These will additionaly be covered by a pari-pasu charge on the fixed assets along with the term lenders, after completion of documentation in this regard.

4 Principal amount of working capital from banks covered under OTS have been shown under working capital facilities. As mentioned in the sanctioned scheme [Refer note no. 27(A) (c)] foreign banks are to be paid by way of one time settelment (OTS)

5. CONTINGENT LIABILITIES & COMMITMENTS Rs. in Lacs

Sr. Particulars As at As at No. 31.03.2015 31.03.2014

1. Contigent Liabilities

a) Claims against the company not acknowledged as debts 2,573.30 5,905.90

2. Capital Commitments

Estimated amount of contracts remaining to be executed on - - capital account and not provided for

Claims against the company not acknowledged as debt s includes the payment demanded by Income Tax, Central Excise, Labour Law, PF and ESI Authorities, Punjab State Electricity Board, amounts to workers where appeals are pending before the respective authorities or courts for disposal.

6. The Board for Industrial and Financial Reconstruction (BIFR) declared the company as a sick company vide its order dated 12th December, 2005 under the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). BIFR passed an order under section 17(3) of SICA & sanctioned a rehabilitation scheme vide its order dated 12th March, 2007 with the cut off date fixed as 31st March, 2007, which was further amended vide order dated 25th May, 2007. The scheme came into effect from the date of issue of the sanctioned scheme and its provisions are binding on all concerned. Relevant extracts from the sanctioned scheme are given below:-

A. REHABILITATION SCHEME

(A) CONTOURS

Sr. Parameter Particulars No.

1. Cut off date 31 -March-2007

2. Waivers (upto cut off date) Waiver of past interest /CI/LD/ penal interest, etc.

3. Shifting of Plant & The entire plant at Mohali Machinery unit will be shifted to Vadodara as new line-III for the of Mohali plant to Vadodara manufacture of 21" True Flat Tubes. The land & building at the Mohali unit will be sold at an expected price of Rs. 11,900 lakhs. Workers at the Mohali plant will be given employment at the Vadodara plant and in the event of any worker not opting for shifting, he/she would be paid their legal dues as per the settlement.

4. Utilisation of sale proceeds Sale of Land & Building at and of Land & Building utilization of the proceeds Mohali Unit (expected at Land & Building at Mohali Unit about Rs.11,900 lakhs) towards payment of workers' dues (about Rs. 1,000 lakhs), payment of foreign banks towards settlement of their liabilities (Rs. 3,000 lakhs) and payment of balance amount of Rs.7,900 lakhs to lenders in the ratio of outstanding dues for FIs & core irregularities for the banks. In case the realization from sale of Land & Building at Mohali unit falls below Rs. 11,900 lakhs, then the promoters will meet the shortfall. In case proceeds are more than Rs. 11,900 lakhs, the appropriation shall be as under

i) Upto Rs.3,000 lakhs - Increase to be paid to secured lenders after paying crystallized workers dues.

ii) Beyond Rs.3,000 lakhs - To be utilized by the company for adding capacities with prior approval of BIFR.

5. Future Interest Rate Interest @ 6% p.a. for term loans/working capital term loans w.e.f 1.10.2008 & there will be no running cash credit working capital facility with banks.

6. Conversion of Principal Term Conversion of 15% of principal loans / WCTL into Equity outstanding of Term Loans/WCTL (Rs.5,400 lakhs) into equity shares of the company after reduction of existing equity by 90%.

7. Promoters' contribution Equity : Rs. 2,500 lakh (Rs. 750 lakhs towards upfront payment Rs. 1,750 lakhs towards capital expenditure for setting up facilities of 14" CPT and captive power generation),

In addition, the company will also convert share application money into equity at par after write down of existing equity.

8. Sanction of need based Non Fund Based Limit - Need (L/C / LG limits) based 2007-08 : Rs.5,054 lakhs additional

9. Security 1. Pledge of entire share holding of promoters post restructuring (after equity w/ off, conversion & fresh induction).

2. Personal Guarantee of Sh. Arjun Thapar on the entire Loans of FIs & Banks.

3. Ceding of pari-passu charge to working capital banks for their WCTL exposure.

4. Opening of Trust & Retention Account with lead bank.

10. Capital Reduction To write down existing paid up equity share capital (Rs. 3,450 lakhs) by 90%.

11. Workers' dues JCTEL/promoters to settle the workers past liability at Rs. 1,000 lakhs (as estimated) to be paid out of sale proceeds of Mohali Unit, as per appropriation proposed in Item No.4.

b) REPAYMENT SCHEDULE

Sr. Parameter Particulars No.

1. Repayment of balance In 33 quarterly instalments principal-Term Loans & commencing from Dec, 2008 working capital term loans to Mar, 2017.

c) ONE TIME SETTLEMENT PROPOSAL FOR FOREIGN BANKS

Sr. Parameter Particulars No. 1. OTS PROPOSAL One time settlement of dues with foreign banks towards settlement of their entire liabilities for Rs. 3,000 lakhs (36.36% of principal) payable out of the Mohali sale proceeds.

C. SALE OF MOHALI ASSETS

The scheme envisages sale of land and building and other infrastructure of the Mohali unit (Punjab) and shifting of the plant and machinery to Vadodara and utilizing the sale proceeds for meeting the liabilities of the secured lenders and workers.

D. RELIEFS & CONCESSIONS:

FIs & Banks

* To waive past interest/compound interest/LD/penal damages etc. from the date of the first default to respective institutions and banks and to agree to collect the principal outstanding as on the cut-off-date in instalments as shown in the cash flow statement, starting from December 2008. The default date for this purpose of waiver for all institutions and banks from which relief is sought is listed in annexure III to the scheme.

* To agree to levy 6% per annum interest from 1.10.2008 until the dues are paid and to convert the debentures into Term Loan.

* Conversion of Working Capital limits into WCTL by Bankers.

* Conversion of part principal into equity, as per SEBI guidelines/pricing formula.

* Reschedule payment of principal so that it is repaid in 33 quarterly instalments starting from December, 2008.

* Banks to provide need based LC/LG facilities from time to time assessed at Rs.5,054 Lakh for the year 2007-08.

* Ceding of pari-passu charge in favour of Working Capital Bankers to secure their WCTL, exposure.

Promoters/Shareholders/JCTEL

* Write down of existing equity by 90%, immediately after sanction of the Scheme.

* Promoters to convert Share Application Money into equity capital as per SEBI formula.

* Personal Guarantee of Shri Arjun Thapar, MD to the exposure of FIs & Banks.

* Promoters to bring in Rs. 25 crores as promoters' contribution in the shape of equity.

* Pledge of entire Promoter's Shareholding (post rehabilitation) with FIs and Banks.

* Sale of Mohali land and building and utilization of proceeds thereof for reduction of debt of institutions/banks and settling workers' liability.

* To continue to induct nominees of lead bank and lead FIs on the board of company.

Workers (Mohali Plant)

* The workers shall extend full cooperation for sale of land and buildings to the company at Mohali and for shifting the plant and machinery to Vadodara.

* To agree to shift to Vadodara on the terms and conditions as applicable to the employees at Vadodara in the event of their giving consent to shift to Vadodara works.

* Those not willing to get shifted, to collect their payments etc. in arrears in accordance with the law.

* To withdraw the legal cases pending with various courts filed by them upon receiving the terminal dues.

Government of Punjab

* To consider to grant permission for closure of Black & White Picture Tube plant and Watch unit as these are nonoperational since 1991; and

* To consider waiver of minimum demand charges, interest etc. from PSEB during lock out and non-operational periods and refund of security deposit.

* Government to consider permitting sale and conversion of end use of land of industrial plots at A-32, Indl. Phase-VIII, Mohali and A-27, Phase-VII, Mohali.

* The Sales Tax Deptt. of Punjab has not raised any demand whatsoever. With the sale of land and building of the Mohali unit & shifting of Plant, the Sales tax liability, if any, shall be deemed to have been extinguished. As no liability has arisen the assessments pending, if any, shall be deemed to have been completed.

Government of Gujarat

* Extension of Sales Tax (CST & VAT) concession/exemption expiring in May, 2006 for a further period of 10 years;

* Exemption of Octroi duty for a period of 10 years;

* Exemption from payment of Electricity Duty for a period of 10 years;

Central Government

* Withdrawal of demand notices for PF contribution on wages/salaries during the lock out period.

* Waiver of interest, liquidated damages and penal interest on delayed payments of Provident Fund.

* Exemption from SEBI guidelines for reduction/de-rating of equity; allotment of equity shares to promoters and associates on a preferential basis as envisaged in the Scheme.

* Income Tax Department to consider exempting the company from the provisions of section 115JB & Fringe Benefit Tax and capital gains tax on sale of Mohali assets under the Income Tax Act during the period of rehabilitation.

* The Ministry of Commerce, (Director General Foreign Trade) to extend the Export Obligation (EO) period under EPCG scheme for a further period of 5 years from the cut off date (31.3.2007).

E. OTHER STIPULATIONS

If the company commits default towards repayment of principal instalments as per the sanctioned scheme or any combination, FIs / Banks reserves the right to charge interest on the defaulted amount at top of the band together with liquidated damages of 2% p.a. thereon till the date of clearance of default or FIs / Banks shall have the right to convert its entire overdue into fully paid up equity shares of JCTEL during the currency of the loans as per SEBI guidelines, or otherwise but with the permission of Hon'ble BIFR, FIs / Banks also reserves the right to revoke the package of rehabilitation with the prior approval of BIFR and in such event of revocation, the decision of FIs / Banks shall be final and binding on the borrower and/or guarantors. In case of FIs / Banks exercise the right of revocation, the financial rehabilitation sanctioned or granted to JCTEL shall be treated as withdrawn and the terms and the conditions of the original loan agreements or documents shall come into force as if no such financial rehabilitation were ever granted to JCTEL. Further, FIs / Banks shall have the right to adjust payment received under the present package of financial rehabilitation against outstanding dues in terms of the original loan agreements/documents.

7 The impact of the scheme approved by the Hon'ble BIFR, on the accounts of the company for the year under review for which appropriate effect was required to be given are as follows :-

(a) As per the scheme, interest is to be provided @ 6% p.a. on loans from banks and FIs w.e.f. October 1, 2008. The company has started accruing interest @ 6% per annum on Term Loans & Working Capital Term Loans outstanding from 1st October, 2008.

(b) However, the Hon'ble BIFR vide order dated 12th November, 2008, has stipulated that FI(s)/banks would neither raise any claim for payment of interest w.e.f. 1st October, 2008 in respect of installments, as envisaged in the sanctioned scheme to be read along-with the cash flow statement, nor would they take coercive action in this regard, until issuance of further direction(s) by the Board. The due installment's of the balance principal outstanding has been released to Banks/Financial Institutions who have communicated their sanctions. Since Bank of Baroda and Indian Overseas Bank have opted for OTS, they have not been paid installments towards balance principal outstanding.

Starting from the quarter January to March 2009, the company started paying the balance principal outstanding of Term loans & Working Capital Term Loan after adjusting the amount converted to equity shares and upfront payment already made, on a deferral basis (over a period of 33 quarterly installments), except payment to Vijaya Bank as the said bank had not sent confirmation to the rehabilitation scheme approved by the Hon'ble BIFR on 12th March, 2007 till the end of 31st March, 2015. However, the Company has defaulted in payment of principal amount of Loans of Rs 10,670.42 (Previous year - Rs 6,977.43 Lacs) to Banks / Financial Institutions for sixteen quarters starting from 1st April, 2011 to 31st March, 2015. The Company was unable to meet its obligations towards repayment of quarterly installments due in respect of term/working capital term loans as per BIFR sanctioned scheme, due to non availability of working capital limits as envisaged in the sanctioned scheme and sluggish market conditions during the year.

In the event the company defaults in its obligations towards repayment of quarterly installments, the banks/ FIs reserve the rights given in the sanctioned scheme as mentioned in Para E of Note 27.

However the Company approached the IFCI (i.e. The Operating Agency hereinafter referred as OA) and the lenders whose interest were affected pursuant to which a meeting of secured lenders was held in the month of April, 2012 where consent for the proposed Modified Debt Restructuring Scheme (MDRS) which envisaged sale of certain additional surplus assets was obtained . The OA, thereafter submitted the MDRS to the Hon'ble BIFR in the month of October, 2012 which envisages besides sale of surplus assets such as Plant & Machinery along-with Other Miscellaneous Assets and Flats, sale/mortgage of vacant land at Vadodara and also re-schedulement of repayment of secured loan and interest thereon within the scheme period. The amount collected from disposal of such surplus assets are to be used to address the dues of secured lenders as per original sanctioned scheme and dues of workers as per Memorandum of Settlement. The Hon'ble BIFR, after hearing all concerned parties vide its interim order dated 29.01.2013, approved the sale of surplus assets as envisaged in MDRS namely 168 workers flats at Mohali, idle Plant & Machinery at Mohali which is no longer required to be relocated to Vadodara and also the surplus land up to 175 acres at the company's unit at Vadodara through the Asset Sale Committee (ASC) already constituted and keeping the sale proceeds in a no lien account ( NLA ) with the OA and utilized as decided by BIFR. The matter regarding re-schedulement of repayment of secured loan within the scheme period as envisaged in proposed Modified Debt Restructuring Scheme (MDRS) is under consideration of BIFR as at 31st March, 2015. During the financial year ended 31st March, 2015 the BIFR bench which was monitoring the case, referred the matter to a larger bench to be headed by the Chairman, BIFR.

(c) During the year ended 31st March, 2014, the idle Plant & Machinery including Electrical Installation, Storage & Water System, Office Equipment, Factory Equipment, Furniture & Fittings, Vehicles etc and few workers flats were sold by the ASC and the proceeds were deposited in the No Lien Account with Operating Agency. The sale of remaining worker's flats is in progress & will be made as per BIFR Interim Order. Bids for the sale of surplus land at Vadodara were invited by the Asset Sale Committee.

During the year ended 31st March, 2015 one conditional bid was received requesting for waiver of the conditions stipulated in the guidelines which was rejected by BIFR and no sale could be concluded till 31st March, 2015. Efforts are on to sell the assets.

(d) In view of the deemed sanction of the Income Tax Department, as per section 19(2) of SICA, no provision for Minimum Alternate Tax is required to be made nor is the remission or cessation of interest liability subject to tax under section 41(1) of The Income Tax Act, 1961 since reliefs/concessions provided in the sanctioned scheme under section 17(3) have an over riding effect on the provisions of the Income Tax Act, 1961.

(e) No interest has been provided on the unsecured loans as per the sanctioned scheme.

(f) The Company had entered into a Memorandum of Settlement with the worker's unions at Mohali, Punjab crystallizing their dues at Rs 40 Crores as directed by BIFR. The Settlement has been registered before the concerned authorities and submitted to BIFR and forms part of the MDRS. Since the crystallized dues were to be settled out of the sale proceeds of the Mohali assets as per the sanctioned scheme, no provision for the same was made till last year. However in view of the objections raised by Statutory Auditors along-with SEBI/Stock Exchanges and to comply with the SEBI directives provision for the said amount of Rs. 40 Crores has been made in the current year and has been shown as exceptional item in the profit and loss statement.

(g) In view of the proposed introduction of GST, extension of Sales Tax (CST & VAT) concession/exemption for a further period of 10 years has not been extended & approved by the Gujarat Govt and accordingly VAT is being paid on goods sold locally and CST on goods sold in an interstate transaction. Further input tax credit is being claimed on VAT paid.

(h) The Scheme granted exemption of octroi & electricity duty for a period of 10 years but the same has not been approved by the Gujarat Government & is being borne by the Company.

8 The impact of the scheme approved by the Hon'ble BIFR, on the accounts of the company for the previous years for which appropriate effect was required to be given are as follows

(a) The working capital facilities from the banks (other than banks covered under OTS as per the sanctioned scheme) have been converted into working capital term loan as per the sanctioned scheme. Since the working capital loans of SBI & SBICI, who had earlier opted for OTS, were assigned to Asset Reconstruction Company (India) Limited (ARCIL) in the financial year 2009-2010, their loans have also been converted into WCTL.

(b) Indian Overseas Bank and Bank of Baroda had not been issued equity equivalent to 15% of principal outstanding as on the cut-off date as per the BIFR sanctioned scheme in the FY 07-08 as they had opted for OTS.

(c) Out of total Debentures of Rs 500 Lacs issued under Series I to Vijaya Bank, 15% of the aforesaid amount of debentures amounting to Rs 75 Lacs has been converted into equity shares in the financial year 2009-2010. The balance amount of Rs.425 lacs have been shown as Term Loan from the financial year 2009-2010 onwards in terms of Sanctioned Scheme. The security created in favour of Debenture Trustees through Trust Deed has not yet been released as at 31st March, 2015.

(d) Similarly, Debentures of Rs 3,000 Lacs issued under Series II & Series III to IFCI have been shown as Term Loan from the financial year 2009-2010 onwards in terms of Sanctioned Scheme. The security created in favour of Debenture Trustees through Trust Deed has not yet been released as on 31st March, 2015.

(e) As per BIFR sanctioned scheme, the share capital of Rs. 7,502.26 lacs was allotted to the promoters/FIs/Banks in the financial year 2007-2008. Further during the year 2009-10, share capital of Rs.34.78 lacs was allotted to ARCIL pursuant to BIFR order, since SBI & SBICI had assigned their debt to aRcIL.

9 As per BIFR Sanctioned Scheme, the revival of the company is dependant on sale of land and building at Mohali. As envisaged in sanctioned scheme, the company's net worth could not turn positive in the 4th year of its implementation due to delay in sale of land & building at Mohali. Due to this delay in the sale of the land and building at Mohali, the company offered some surplus assets for sale which was agreed in the meeting of the joint lenders and thereafter BIFR also gave its consent to the sale through the ASC. While some of these assets have been sold, the sale of surplus land at Vadodara could not be concluded for reasons explained above. The process for re-running the sale is on. Management is hopeful that its request for Modified Debt Restructuring Scheme (MDRS) would be accepted by Hon'ble BIFR & Company would be able to arrange requisite working capital for importing critical raw materials to start its production lines. On the assumption that the revival of the company will take place in near future, the accounts of the company have been prepared on a "going concern" basis and on the assumption made by the management that adequate finances would be available after the sale of surplus assets to enable the company to operate on a profitable basis. Accordingly, the company has been treated as a going concern. Further with the release of Working Capital as envisaged in the Sanctioned Scheme the company would like to take up assembly of LCD/LED modules which is also in the same space and having same customer base.

10 (a) In terms of the sanctioned scheme passed by BIFR in 2007 and interim order of BIFR dated 29.01.2013, the Mohali Assets which includes Land, Building, Plant & Machinery including Electrical Installation, Storage & Water System, Office Equipment, Factory Equipment, Furniture & Fittings, Vehicles and Worker's Flat in its entirety are to be sold on "As is where is" and "As is what is basis" through the Asset Sale Committee. The BIFR also permitted sale of surplus land at Vadodara through the Asset Sale Committee. During the year ended 31st March, 2014, few Worker's Flats, Idle Plant & Machinery including Electrical Installation, Storage & Water System, Office Equipment, Factory Equipment, Furniture & Fittings, Vehicles etc were sold by the Asset Sale Committee and the proceeds were deposited with the Operating Agency.The carrying value assets as at 31-March, 2015 consist of Lease hold Land & Building. Being operations at Mohali has been discontinued, the same are held for sale on 31-March-2015. In view of above, no provision for impairment of remaining Fixed Assets at Mohali is required.

(b) The Fixed Assets at Mohali as at 31st March, 2015 consist of Land, Building and remaining Workers Flats which have been retired from active use and held for disposal and are shown separately in Note No. 10.1 i.e. Schedule of fixed assets pertaining to discontinued operations in financial statements.

(c) During the financial year ended 31st March, 2015, Company has made a provision for impairment of inventory at Mohali to the extent of Rs 61.57 Lacs thereby reducing the value of Inventory to zero. Similarly the Company has made a provision for impairment of Inventory at Vadodara of Rs 253.10 Lacs reducing the value of Inventory thereto Rs 359.62 Lacs.

(d) No provision for impairment of the fixed assets at Vadodara Unit has been made as the Vadodara unit is temporarily not in operation and would commence production no sooner the surplus assets are sold and thereafter working capital is made available as stipulated in the sanctioned scheme. Further the assets have not completed their useful life and are in good working condition. Besides there is lot of appreciation in the value of the land bank available at Vadodara.

31 The Company estimates the deferred tax (charge) / credit using the applicable rate of taxation based on the impact of timing differences between financial statements and estimated taxable income for the current period. Since there is no reasonable virtual certainty of realisation, deferred tax asset (Net) of Rs.15,822.97 Lacs (Previous year Rs. 17,235.36 lacs) has not been recognized.

11 EMPLOYEE BENEFITS:

(a) Defined Contribution Plans

The Company has recognized the contribution/liability in the Statement of Profit & Loss for the financial year 2014-15.

(b) Defined Benefit Plans & Other Long Term Benefits:

The following disclosures are made in accordance with AS 15 (Revised) pertaining to Defined Benefit Plans and Other Long Term Benefits:-

12 BALANCE CONFIRMATION

(a) In the opinion of the management, Sundry Debtors & 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. Margin Money Balances, Trade Receivables, Trade Payables and other receivables /payables have been shown as per values appearing in the books of accounts and have been treated as good for recovery/payment unless specifically provided for.

(b) Balance of Banks and FIs as appearing in the books of accounts are as mentioned in the sanctioned scheme approved by the Hon'ble BIFR and these balances are after accounting for 15% equity share allotment made to them in the financial year 2007-08 and 2009-10, upfront payment and installments paid up to financial year ending 31st March, 2015. There is no change in the bank balances of those banks which have not yet sent the confirmation to the sanctioned scheme or those which have opted for OTS.

13. RELATED PARTY DISCLOSURES:

Names of related parties and description of relationship

(a) Related parties where significant influence exist : India International Airways Limited

(b) Associates : JCT Limited

(c) Key Management Personnel : Mr Arjun Thapar

(d) Relative of Key Management Personnel :

Mrs. Nayantara Thapar, Ms. Shivani Thapar

(e) Companies over which persons described in

(c) & (d) are able to exercise significant influence : Team Plus Securities Limited

APJ Financial Services Private Limited

14 The Company has taken certain commercial premises under cancellable operating lease arrangements. The total aggregate Lease Rentals recognized as expense in the Statement of profit & loss under cancellable operating lease was Rs. 27.80 Lacs (Previous Period: Rs 68.77 Lacs).

15 INFORMATION ON SEGMENT RESULTS:

The company is engaged in the manufacture of Colour Picture Tubes & Deflection Yoke which is in the context of Accounting Standard 17 on Segment Reporting, issued by the Institute of Chartered Accountants of India is considered as the only business segment. Presently company has one plant designed to manufacture Color Picture Tube & Deflection Yoke which is situated at Vadodara. Plant & Machinery including Electrical Installation, Storage & Water System, Office Equipment, Factory Equipment, Furniture & Fittings, Vehicles etc. of two Plants situated at Mohali has been disposed off during the year ended 31st March, 2014. Being having one business entity, there is no reportable business as well as geographical segments.

16. Team Plus Securities Limited being the promoter and holding company had advanced an interest free loan of Rs 50 lacs to the company in the beginning of FY 2011/12 towards meeting the short fall in the resources available with the company at that time for servicing the secured debts. In terms of BIFR order the promoters are to meet any shortfall in the fund requirements of the company for servicing the debts of the secured creditors. Mr Arjun Thapar is a director of Team Plus Securities Limited, the promoter and holding company, and the Managing Director of JCT Electronics Limited, its subsidiary. The said loan of Rs 50 lacs is still outstanding and has not been returned by the company as the same cannot be repaid without the prior written approval of the secured lenders. Further no interest is payable on such loans without the approval of the lenders. The Sick Industrial Companies (Special Provisions) Act, 1985 stipulates that the provisions of this act and rules made there under shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in the Memorandum or Articles of Association of an industrial company. As such the orders of BIFR prevail and override the provisions contained in the Companies Act. Further Team Plus Securities Limited is an NBFC and is authorized to give loans as per its objects and such loans are exempted from the applicability of the provisions of Section 185 of the Companies Act , 2013 .

17. DISCONTINUING OPERATIONS

(a) Description of Discontinuing Operations

(i) Company had set-up a manufacturing plant at A-32, Industrial Area, Phase - VIII, Mohali for manufacture of Color Picture Tubes. The installed capacity of this plant was 10 Lacs units per annum. Company also had manufacturing plant for manufacture of Deflection Yokes unit at A-27, Industrial Area, Phase - VII, Mohali.

(ii) The Company started incurring losses from the year 1997-98 due to non-availability of working capital resulting in low capacity utilization. Further the decline in prices of colour picture tubes on account of cheap imports, also contributed to the losses. This resulted in both the plants at Mohali shutting down active production in 2001. A reference was made by the Company to the Hon'ble BIFR under the relevant provisions of Sick Industrial Companies (Special Provisions) Act, 1985 ('SICA') in 2002, when the accumulated losses exceeded its net worth as on 31st March, 2002. The Company was declared a sick industrial company within the meaning of SICA by the Hon'ble BIFR vide its order dated 12.12.2005. Thereafter, the Company submitted its proposal for revival and rehabilitation and sanction was accorded to the scheme vide order dated 12.03.2007 passed by the Hon'ble BIFR (Sanctioned Scheme).

(iii) In terms of the Sanctioned Scheme the land & building at both the plants at Mohali was to be sold and the plant & machinery shifted to Vadodara. Subsequently the Hon'ble BIFR allowed sale of the idle plant & machinery including Electrical Installation, Storage & Water System, Office Equipment, Factory Equipment, Furniture & Fittings, Vehicles etc at Mohali Unit and it was no longer required to be shifted as proposed in the MDRS submitted to BIFR by the OA.

(iv) During the year ended 31st March, 2014, the Asset Sale Committee sold the Idle Plant & Machinery including Electrical Installation, Storage & Water System, Office Equipment, Factory Equipment, Furniture & Fittings, Vehicles etc. as also few workers flats and the proceeds were deposited in the no lien account with the Operating Agency. The land, building, and remaining workers flats at Mohali have been retired from the above assets and are held for disposal and the same are shown separately in Note No. 10.1 i.e. Schedule of fixed assets pertaining to discontinued operations.

(v) During the year ended 31st March, 2015, no sale could be transacted for the land, building, and remaining workers flats at Mohali.

(b) Business or Geographical Segment.

(i) Company is engaged only in manufacture of Color Picture Tube, and Deflection Yoke. This is the only Business Segment of the Company.

(ii) In the previous year's company had three plants designed to manufacture Color Picture Tube & Deflection Yoke. Plant & Machinery including Electrical Installation, Storage & Water System, Office Equipment, Factory Equipment, Furniture & Fittings, Vehicles etc of two Plants situated at Mohali were disposed off during the year ended 31st , March 2014 . The remaining one plant is situated at Baroda Unit, Gujarat. These have not been categorized under Accounting Standard 17 on Segment Reporting, issued by Ministry of Corporate Affairs as reportable geographical segments. However for limited purpose of categorization under discontinuing operations, Vadodara Plant & Mohali Plant were considered as two geographical segments.

(c) Date & Nature of Initial Disclosure

The date & nature of such disclosure is described as under:-

(i) The Asset Sale Committee (ASC) initiated action to sell the Land & Building at Mohali, consisting of two plots i.e. at A-32, Industrial Area, Phase - VIII and A-27, Industrial Area, Phase-VII, Mohali as per the Sanctioned Scheme of BIFR by releasing advertisements in the months of December, 2011, September, 2012 and February, 2013 in response to which no bids were received at the Reserve Price fixed by Asset Sale Committee (ASC).

(ii) The Plant & Machinery, including Electrical Installation, Storage & Water System, Office Equipment, Factory Equipment, Furniture & Fittings, Vehicles etc & few workers flats at Mohali were sold by the ASC pursuant to order of BIFR dated 29th Jan, 2013 and the proceeds were deposited in the No Lien Account with Operating Agency.

(iii) Till the year ended 31st March, 2015, the Company has not yet entered into any binding agreement for sale of Land and Building attributable to the discontinuing operation with any party. The decision to sell Land & Building, Plant & Machinery, including Electrical Installation, Storage & Water System, Office Equipment, Factory Equipment, Furniture & Fittings, Vehicles etc & Flats and its acceptance by Board of directors and secured lenders, is sufficient to disclose it as discontinuing operations.

(d) Date or period in which the discontinuance is expected to be completed if known or determinable

The ASC has already initiated steps towards sale. However the date or period in which the discontinuation is expected to be completed is not determinable as on date as the process for sale has not been completed in respect of the land & building and few workers flats at Mohali till 31st March, 2015.

18. Provisions related to Corporate Social Responsibility (CSR) as defined and prescribed under section 135 of the Companies Act, 2013, deses not apply to Company during the financial year ended 31st March, 2015

19. COMPARATIVE FIGURES

Figures for the previous year have been regrouped/reclassified wherever necessary to make them comparable with those of the current year.






Mar 31, 2014

S No. Particulars As at As at 31.03.2014 31.03.2013 Rs in Lacs Rs in Lacs

1.1 Contigent Liabilities

a) Claims against the company not acknowledged 5,905.90 5,331.60 as debts

b) Bills discounted - 249.80

1.2 Capital Commitments

Estimated amount of contracts remaining to be executed - 5.52 on capital account and not provided for

2. The Board for Industrial and Financial Reconstruction (BIFR) declared the company as a sick company vide its order dated 12th December, 2005 under the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). BIFR passed an order under section 17(3) of SICA & sanctioned a rehabilitation scheme vide its order dated 12th March, 2007 with the cut off date fixed as 31st March, 2007, which was further amended vide order dated 25 th May, 2007. The scheme came into effect from the date of issue of the sanctioned scheme and its provisions are binding on all concerned. Relevant extracts from the sanctioned scheme are given below:-

C. SALE OF MOHALI ASSETS

The scheme envisages sale of land and building and other infrastructure of the Mohali unit (Punjab) and shifting of the plant and

machinery to Vadodara and utilizing the sale proceeds for meeting the liabilities of the secured lenders and workers.

D. RELIEFS & CONCESSIONS:

FIs & Banks

- To waive past interest/compound interest/LD/penal damages etc. from the date of the first default to respective institutions and banks and to agree to collect the principal outstanding as on the cut-off-date in instalments as shown in the cash flow statement, starting from December 2008. The default date for this purpose of waiver for all institutions and banks from which relief is sought is listed in annexure III to the scheme.

- To agree to levy 6% per annum interest from 1.10.2008 until the dues are paid and to convert the debentures into Term Loan.

- Conversion of Working Capital limits into WCTL by Bankers.

- Conversion of part principal into equity, as per SEBI guidelines/pricing formula.

- Reschedule payment of principal so that it is repaid in 33 quarterly instalments starting from December, 2008.

- Banks to provide need based LC/LG facilities from time to time assessed at Rs.5,054 Lakh for the year 2007-08.

- Ceding of pari-passu charge in favour of Working Capital Bankers to secure their WCTL, exposure.

Promoters/Shareholders/JCTEL

- Write down of existing equity by 90%, immediately after sanction of the Scheme.

- Promoters to convert Share Application Money into equity capital as per SEBI formula.

- Personal Guarantee of Shri Arjun Thapar, MD to the exposure of FIs & Banks.

- Promoters to bring in Rs. 25 crores as promoters'' contribution in the shape of equity.

- Pledge of entire Promoter''s Shareholding (post rehabilitation) with FIs and Banks.

- Sale of Mohali land and building and utilization of proceeds thereof for reduction of debt of institutions/banks and settling workers'' liability.

- To continue to induct nominees of lead bank and lead FIs on the board of company.

Workers (Mohali Plant)

- The workers shall extend full cooperation for sale of land and buildings to the company at Mohali and for shifting the plant and machinery to Vadodara.

- To agree to shift to Vadodara on the terms and conditions as applicable to the employees at Vadodara in the event of their giving consent to shift to Vadodara works.

- Those not willing to get shifted, to collect their payments etc. in arrears in accordance with the law.

- To withdraw the legal cases pending with various courts filed by them upon receiving the terminal dues.

Government of Punjab

- To consider to grant permission for closure of Black & White Picture Tube plant and Watch unit as these are non- operational since 1991; and

- To consider waiver of minimum demand charges, interest etc. from PSEB during lock out and non-operational periods and refund of security deposit.

- Government to consider permitting sale and conversion of end use of land of industrial plots at A-32, Indl. Phase-VIII, Mohali and A-27, Phase-VII, Mohali.

- The Sales Tax Deptt. of Punjab has not raised any demand whatsoever. With the sale of land and building of the Mohali unit & shifting of Plant, the Sales tax liability, if any, shall be deemed to have been extinguished. As no liability has arisen the assessments pending, if any, shall be deemed to have been completed.

Government of Gujarat

- Extension of Sales Tax (CST & VAT) concession/exemption expiring in May, 2006 for a further period of 10 years;

- Exemption of Octroi duty for a period of 10 years;

- Exemption from payment of Electricity Duty for a period of 10 years;

Central Government

- Withdrawal of demand notices for PF contribution on wages/salaries during the lock out period.

- Waiver of interest, liquidated damages and penal interest on delayed payments of Provident Fund.

- Exemption from SEBI guidelines for reduction/de-rating of equity; allotment of equity shares to promoters and associates on a preferential basis as envisaged in the Scheme.

- Income Tax Department to consider exempting the company from the provisions of section 115JB & Fringe Benefit Tax and capital gains tax on sale of Mohali assets under the Income Tax Act during the period of rehabilitation.

- The Ministry of Commerce, (Director General Foreign Trade) to extend the Export Obligation (EO) period under EPCG scheme for a further period of 5 years from the cut off date (31.3.2007).

E. OTHER STIPULATIONS

If the company commits default towards repayment of principal instalments or payment of interest as per the sanctioned scheme or any combination, FIs / Banks reserves the right to charge interest on the defaulted amount at top of the band together with liquidated damages of 2% p.a. thereon till the date of clearance of default or FIs / Banks shall have the right to convert its entire overdue into fully paid up equity shares of JCTEL during the currency of the loans as per SEBI guidelines, or otherwise but with the permission of Hon''ble BIFR, FIs / Banks also reserves the right to revoke the package of rehabilitation with the prior approval of BIFR and in such event of revocation, the decision of FIs / Banks shall be final and binding on the borrower and/or guarantors. In case of FIs / Banks exercise the right of revocation, the financial rehabilitation sanctioned or granted to JCTEL shall be treated as withdrawn and the terms and the conditions of the original loan agreements or documents shall come into force as if no such financial rehabilitation were ever granted to JCTEL. Further, FIs / Banks shall have the right to adjust payment received under the present package of financial rehabilitation against outstanding dues in terms of the original loan agreements/documents.

3 A The impact of the scheme approved by the Hon''ble BIFR, on the accounts of the company for the year under review for which appropriate effect was required to be given are as follows :-

a) As per the scheme, interest is to be provided @ 6% p.a. on loans from banks and FIs w.e.f. October 1,2008.

The company has started accruing interest @ 6% per annum on Term Loans & Working Capital Term Loans outstanding from 1st October, 2008.

b) However, the Hon''ble BIFR vide order dated 12th November, 2008, has stipulated that FI(s)/banks would neither raise any claim for payment of interest w.e.f. 1 st October, 2008 in respect of installments, as envisaged in the sanctioned scheme to be read along-with the cash flow statement, nor would they take coercive action in this regard, until issuance of further direction(s) by the Board. The installment''s of the balance principal outstanding has been released to Banks/Financial Institutions who have communicated their sanctions. Since Bank of Baroda and Indian Overseas Bank have opted for OTS, they have not been paid installments towards balance principal outstanding.

Starting from the quarter January to March 2009, the company started paying the balance principal outstanding of Term loans & Working Capital Term Loan after adjusting the amount converted to equity shares and upfront payment already made, on a deferral basis (over a period of 33 quarterly installments), except payment to Vijaya Bank as the said bank had not sent confirmation to the rehabilitation scheme approved by the Hon''ble BIFR on 12th March, 2007 till the end of 31st March, 2014. However, the Company has defaulted in payment of principal amount of Loans of Rs 6977.43 Lacs (Previous year 4105.33 Lacs) to Banks / Financial Institutions for twelve quarters starting from 1st April, 2011 to 31st March, 2014. The Company was unable to meet its obligations towards repayment of quarterly installments due in respect of term/working capital term loans as per BIFR sanctioned scheme, due to non availability of working capital limits as envisaged in the sanctioned scheme and sluggish market conditions during the year.

In the event the company defaults in its obligations towards repayment of quarterly installments, the banks /FIs reserve the rights given in the sanctioned scheme as mentioned in Para E of Note 27.

The Company approached the IFCI (i.e. The Operating Agency hereinafter referred as OA) and the lenders whose interest were affected pursuant to which a meeting of secured lenders was held in the month of April, 2012 where consent for the proposed Modified Debt Restructuring Scheme (MDRS) which envisaged sale of certain additional surplus assets was obtained . The OA , thereafter submitted the MDRS to the Hon''ble BIFR in the month of October, 2012 which envisages besides sale of surplus assets such as Plant & Machinery along-with Other Miscellaneous Assets and Flats, sale/mortgage of vacant land at Vadodara and also re-sched -ulement of repayment of secured loan and interest thereon within the scheme period. The amount collected from disposal of such surplus assets are to be used to address the dues of secured lenders as per original sanctioned scheme and dues of workers as per Memorandum of Settlement.

The Hon''ble BIFR ,after hearing all concerned parties vide its interim order dated 29.01.2013, approved the sale of surplus assets as envisaged in MDRS namely 168 workers flats at Mohali, idle Plant & Machinery at Mohali which is no longer required to be relocated to Vadodara and also the surplus land up to 175 acres at the company''s unit at Vadodara through the Asset Sale Committee (ASC) already constituted and keeping the sale proceeds in a no lien account ( NLA ) with the OA and utilized as decided by BIFR. The matter regarding re- schedulement of repayment of secured loan within the scheme period as envisaged in proposed Modified Debt Restructuring Scheme (MDRS) is pending before BIFR as at 31st March, 2014.

c) During the year the idle Plant & Machinery including Electrical Installation, Storage & Water System, Office Equipment, Factory Equipment, Furniture & Fittings, Vehicles etc and few workers flats were sold by the ASC and the proceeds were deposited in the No Lien Account with Operating Agency. The sale of remaining worker''s flats is in progress & will be made as per BIFR Interim Order. Bids for the sale of surplus land at Vadodara were invited by the Asset Sale Committee. As one of the bid selected was conditional, the matter has been referred to BIFR which is under consideration of BIFR as at 31st March, 2014.

d) In view of the deemed sanction of the Income Tax Department, as per section 19(2) of SICA, no provision for Minimum Alternate Tax is required to be made nor is the remission or cessation of interest liability subject to tax under section 41(1) of The Income Tax Act, 1961 since reliefs/concessions provided in the sanctioned scheme under section 17(3) have an over riding effect on the provisions of the Income Tax Act, 1961.

e) No interest has been provided on the unsecured loans as per the sanctioned scheme.

f) The Company entered into a Memorandum of Settlement with the worker''s unions at Mohali, Punjab crystallizing their dues at Rs 40 Crores. The Settlement has been registered before the concerned authorities and submitted to BIFR. Since the crystallized dues of workers/staff are to be settled out of the sale proceeds of the Mohali assets as per the sanctioned scheme, hence no provision for the dues to workers/staff has been made in the current year ended 31st March, 2014. The same shall be provided upon sale of Mohali Assets.

g) In view of the proposed introduction of GST, extension of Sales Tax (CST & VAT) concession/exemption for a further period of 10 years has not been extended & approved by the Gujarat Govt and accordingly VAT is being paid on goods sold locally and CST on goods sold in an interstate transaction. Further input tax credit is being claimed on VAT paid.

h) The Scheme granted exemption of octroi & electricity duty for a period of 10 years but the same has not been approved by the Gujarat Government & is being borne by the Company.

28 B The impact of the scheme approved by the Hon''ble BIFR, on the accounts of the company for the previous years for which appropriate effect was required to be given are as follows :-

a) The working capital facilities from the banks (other than banks covered under OTS as per the sanctioned scheme) have been converted into working capital term loan as per the sanctioned scheme. Since the working capital loans of SBI & SBICI, who had earlier opted for OTS, were assigned to Asset Reconstruction Company (India) Limited (ARCIL) in the financial year 2009-2010, their loans have also been converted into WCTL.

b) Indian Overseas Bank and Bank of Baroda had not been issued equity equivalent to 15% of principal outstanding as on the cut-off date as per the BIFR sanctioned scheme in the FY 07-08 as they had opted for OTS.

c) Out of total Debentures of Rs 500 Lacs issued under Series I to Vijaya Bank, 15% of the aforesaid amount of debentures amounting to Rs 75 Lacs has been converted into equity shares in the financial year 2009-2010. The balance amount of Rs.425 lacs have been shown as Term Loan from the financial year 2009-2010 in terms of Sanctioned Scheme. The security created in favour of Debenture T rustees through Trust Deed is in the process of being released. The save is not yet released as at 31.03.2014.

d) Similarly, Debentures of Rs 3,000 Lacs issued under Series II & Series III to IFCI have been shown as Term Loan from the financial year 2009-2010 onwards in terms of Sanctioned Scheme. The security created in favour of Debenture Trustees through Trust Deed is in the process of being released.

e) As per BIFR sanctioned scheme, the share capital of Rs. 7,502.26 lacs was allotted to the promoters/FIs/Banks in the financial year 2007-2008. Further during the year 2009-10, the share capital of Rs.34.78 lacs was allotted to ARCIL pursuant to BIFR order, since SBI & SBICI have assigned their debt to ARCIL.

29 As per Sanctioned BIFR Scheme, the revival of the company is dependant on sale of land and building at Mohali. As envisaged in sanctioned scheme, the company''s net worth could not turn positive in the 4th year of its implementation due to delay in sale of land & building.

On the assumption that the revival of the company will take place in near future, the accounts of the company have been prepared on a "going concern" basis on an assumption made by the management that adequate finances and opportunities would be available in the foreseeable future to enable the company to operate on a profitable basis. Accordingly, the company has been treated as a going concern.

30 a) In terms of the orders of BIFR, the Mohali Assets which includes Land, Building, Plant & Machinery, including Electrical

Installation, Storage & Water System, Office Equipment, Factory Equipment, Furniture & Fittings, Vehicles and Worker''s Flat in its entirety are to be sold on "As is where is" and "As is what is basis". The Hon''ble BIFR vide its interim order dated 29.01.2013, approved the sale of surplus assets as envisaged in Modified Debt Restructuring Scheme (MDRS) namely 168 workers flats at Mohali, idle Plant & Machinery including Electrical Installation, Storage & Water System, Office Equipment, Factory Equipment, Furniture & Fittings, Vehicles etc which is no longer required to be relocated to Vadodara through the Asset Sale Committee. The Hon''ble BIFR also permitted sale of surplus land at Vadodara in terms of the MDRS through the Asset Sale Committee. During the year ended 31st March, 2014, few Worker''s Flats, Idle Plant & Machinery including Electrical Installation, Storage & Water System, Office Equipment, Factory Equipment, Furniture & Fittings, Vehicles etc were sold by the Asset Sale Committee and the proceeds were deposited with IFCI (i.e. The Operating Agency). No provision for impairment of remaining Fixed Assets at Mohali has been considered necessary by the management as it expects that expected realisable value as per last advertisement the minimum reserve price was Rs.180 crores, which is higher than carrying value as at 31st March, 2014. The Fixed Assets at Mohali as at 31st March, 2014 consist of Land, Building & remaining Worker''s Flats.

b) The Fixed Assets at Mohali i.e. Land, Building and remaining Workers Flats, have been retired from active use and held for disposal and are shown separately in Note no. 10 i.e. Schedule of fixed assets of financial statements.

c) As the inventory at Mohali unit, aggregating to Rs. 1,376.44 lacs, which has to be transferred to the Vadodara unit as per the scheme contains a substantial loss on impairment, necessary provision considering diminution in value has been made. During the financial year ended 31st March, 2014, Company has made a provision for impairment of Rs. 1,219.96 Lacs on such Inventory, reducing the value of working progress/finished goods by Rs.32.25 lacs and 62.66 Lacs has been adjusted against corresponding provision/liability. The balance of Rs 61.57 lacs is estimated to be net realizable value.

31 The Company estimates the deferred tax (charge) / credit using the applicable rate of taxation based on the impact of timing differences between financial statements and estimated taxable income for the current period. Since there is no reasonable virtual certainty of realisation, deferred tax asset (Net) of Rs. 17,235.36 Lacs (Previous year Rs. 16,441.58 lacs) has not been recognized.

32 EMPLOYEE BENEFITS:

a) Defined Contribution Plans

The Company has recognized the contribution/liability in the Statement of Profit & Loss for the financial year 2013-14.

b) Defined Benefit Plans & Other Long Term Benefits:

The following disclosures are made in accordance with AS 15 (Revised) pertaining to Defined Benefit Plans and Other Long Term Benefits :-

Notes:

a) The estimates of future salary increases, considered in actuarial valuation, takes into account the inflation, seniority, promotion and other relevant factors.

b) The company has a fund with the Life Insurance Corporation under the Employees Gratuity Scheme and the fund value as on 31st March 2014 was Rs. 170.84 lacs (Previous year Rs. 408.50 lacs).

c) As per valuation by Actuary liability towards Gratuity recognized in the Balance Sheet as on 31st March 2014 is Rs. 761.53 lacs (Previous year Rs. 621.84 lacs).

33. BALANCE CONFIRMATION

a) In the opinion of the management, Sundry Debtors & 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. During the Financial year ended 31st March 2014 confirmatory letters have been sent to the sundry debtors, requesting them to confirm the account balances as on 31st March, 2014. Lot of parties has not yet confirmed the balances as on the date of signing the financials. Accordingly creditors, other receivables/payables and debtors are subject to confirmation and have been shown as per values appearing in the books of accounts and have been treated as good for recovery/payment unless specifically provided for.

b) Balance of Banks and FIs as appearing in the books of accounts are as mentioned in the sanctioned scheme approved by the Hon''ble BIFR and these balances are after accounting for 15% equity share allotment made to them in the financial year 2007-08 and 2009-10, upfront payment and installments paid up to financial year ending 31st March, 2014. There is no change in the bank balances of those banks which have not yet sent the confirmation to the sanctioned scheme or those which have opted for OTS.

35. RELATED PARTY DISCLOSURES:

Names of related parties and description of relationship

a) Related parties where significant influence exist : India International Airways Limited

b) Associates : JCT Limited

c) Key Management Personnel : Mr Arjun Thapar

d) Relative of Key Management Personnel : Mrs. Nayantara Thapar, Ms. Shivani Thapar

e) Companies over which persons described in

(c) & (d) are able to exercise significant influence : APJ Financial Services Private Limited

Team Plus Securities Limited

36. The Company has taken certain commercial premises under cancellable operating lease arrangements. The lease period varies from two to three years with the option to extend the same with mutual consent. The total aggregate Lease Rentals recognized as expense in the Statement of profit & loss under cancellable operating lease was Rs. 66.87 Lacs (Previous Period : Rs 131.96 Lacs).

37. The gross carrying amount of product development under progress of Rs 140.95 Lacs has been transferred to Intangible and the same has been written off during the same financial year ended 31st March, 2014 as Company did not expect any commercial use. The Company has not incurred any expenditure towards product development falling under the definition of Intangible Assets as per the Accounting Standard-26 as on 31st March, 2014.

38. INFORMATION ON SEGMENT RESULTS

The company is engaged in the manufacture of Colour Picture Tubes & Deflection Yoke which is in the context of Accounting Standard 17 on Segment Reporting, issued by the Institute of Chartered Accountants of India is considered as the only business segment. Presently company has one plant designed to manufacture Color Picture Tube & Deflection Yoke which is situated at Vadodara. Plant & Machinery including Electrical Installation, Storage & Water System, Office Equipment, Factory Equipment, Furniture & Fittings, Vehicles etc of Two Plants situated at Mohali has been disposed off during the year ended 31st March, 2014. Being having one business entity, there are no reportable business as well as geographical segments.

39. DISCONTINUING OPERATIONS

a) Description of Discontinuing Operations

(i) Company had set-up a manufacturing plant at A-32, Industrial Area, Phase-VIII, Mohali for manufacture of Color Picture Tubes. The installed capacity of this plant was 10 Lacs units per annum. Company also had manufacturing plant for manufacture of Deflection Yokes unit at A-27, Industrial Area, Phase-VII , Mohali.

(ii) The Company started incurring losses from the year 1997-98 due to non-availability of working capital resulting in low capacity utilization. Further the decline in prices of colour picture tubes on account of cheap imports, also contributed to the losses. This resulted in both the plants at Mohali shutting down active production in 2001. A reference was made by the Company to the Hon''ble BIFR under the relevant provisions of Sick Industrial Companies (Special Provisions) Act, 1985 (''SICA'') in 2002, when the accumulated losses exceeded its net worth as on 31st March, 2002. The Company was declared a sick industrial company within the meaning of SICA by the Hon''ble BIFR vide its order dated 12.12.2005. Thereafter, the Company submitted its proposal for revival and rehabilitation and sanction was accorded to the scheme vide order dated 12.03.2007 passed by the Hon''ble BIFR (Sanctioned Scheme).

(iii) In terms of the Sanctioned Scheme the land & building at both the plants at Mohali are to be sold and the plant & machinery shifted to Vadodara. Subsequently the Hon''ble BIFR also allowed sale of the idle plant & machinery including Electrical Installation, Storage & Water System, Office Equipment, Factory Equipment, Furniture & Fittings, Vehicles etc at Mohali Unit no longer required to be shifted as proposed in the MDRS submitted to BIFR by the OA.

(iv) During the year ended 31st March, 2014, the Asset Sale Committee has already initiated steps towards sale and accordingly few Worker''s Flats, Idle Plant & Machinery including Electrical Installation, Storage & Water System, Office Equipment, Factory Equipment, Furniture & Fittings, Vehicles etc were sold and the proceeds were deposited with IFCI (i.e. The Operating Agency). The land, building and remaining workers flats at Mohali have been retired from the above assets and are held for disposal and the same are shown separately in Note no.10 i.e. Schedule of fixed assets of Financial Statements.

b) Business or Geographical Segment

(i) Company is engaged only in manufacture of Color Picture Tube and Deflection Yoke. This is the only Business Segment of the Company.

(ii) In the previous year company had three plants designed to manufacture Color Picture Tube & Deflection Yoke. Plant & Machinery including Electrical Installation, Storage & Water System, Office Equipment, Factory Equipment, Furniture & Fittings, Vehicles etc of Two Plants situated at Mohali has been disposed off during the year. The remaining one plant is situated at Baroda Unit, Gujarat. These have not been categorized under Accounting Standard 17 on Segment Reporting, issued by Ministry of Corporate Affairs as reportable geographical segments. However for limited purpose of categorization under discontinuing operations,

Vadodara Plant & Mohali Plant were considered as two geographical segments. As per BIFR Scheme, during the financial year ended 31st March, 2014, Company has disposed-off Few Workers Flats, Plant & Machinery including Electrical Installation, Storage & Water System, Office Equipment, Factory Equipment, Furniture & Fittings, Vehicles etc of at both plants at Mohali which we categorized as one identifiable geographical segment during the financial year ended 31st March, 2014.

c) Date & Nature of Initial Disclosure

The date & nature of such disclosure is described as under :-

(i) The Asset Sale Committee (ASC) initiated action to sell the Land & Building at Mohali, consisting of two plots

i.e. at A-32, Industrial Area, Phase - VIII and A-27, Industrial Area, Phase-VII, Mohali as per the Sanctioned Scheme of BIFR by releasing advertisements in the months of December, 2011, September, 2012 and February, 2013 in response to which no bids were received at the Reserve Price fixed by Asset Sale Committee (ASC).

(ii) The Secured Lenders on the request of the company agreed to sell the Plant & Machinery, including Electrical Installation, Storage & Water System, Office Equipment, Factory Equipment, Furniture & Fittings, Vehicles etc & Few Flats at Mohali. Accordingly the MDRS was filed by Operating Agency (IFCI) with Hon''ble BIFR in the month of October, 2012, which included sale of the aforesaid assets. The Hon''ble BIFR on the request of the Lenders allowed sale of the said assets vide its order dated 29th January, 2013 . During the year the idle Plant & Machinery including Electrical Installation, Storage & Water System, Office Equipment, Factory Equipment, Furniture & Fittings, Vehicles etc and few workers flats were sold by the Asset Sale Committee (ASC)and the proceeds were deposited in the No Lien Account with Operating Agency.

(iii) In terms of the MDRS, the Hon''ble BIFR also permitted sale of the surplus land up to 175 acres at the company''s unit at Vadodara. The Asset Sale Committee (ASC) thereafter started the process of sale by realizing advertisements.. Bids for the sale of surplus land at Vadodara were invited by the ASC. As one of the bid selected was conditional, the matter has been referred to BIFR which is under consideration of BIFR as at 31st March, 2014.

(iv) During the previous year ended 31st March, 2013, the Company has not yet entered into any binding agreement for sale of substantial assets attributable to the discontinuing operation with any party. The decision to sell Land & Building, Plant & Machinery, including Electrical Installation, Storage & Water System, Office Equipment, Factory Equipment, Furniture & Fittings, Vehicles etc & Flats and its acceptance by Board of directors and secured lenders, is sufficient to disclose it as discontinuing operations. During the year ended 31st March, 2014, Asset Sale Committee (ASC) disposed off the Plant & Machinery including Electrical Installation, Storage & Water System, Office Equipment, Factory Equipment, Furniture & Fittings, Vehicles etc & Few Flats at Mohali.

d) Date or period in which the discontinuance is expected to be completed if known or determinable

The ASC has already initiated steps towards sale. However the date or period in which the discontinuation is expected to be completed is not determinable as on date as the process for sale has not been completed in respect of the land & building , workers flats at Mohlai and surplus land at Vadodara .

e) Carrying amounts, as of the balance sheet date, of the total assets and total liabilities are as under:

(g) Details of assets against which the company has entered one or more binding agreements as on 31st March, 2014. Details are as under :

1. Net selling price or range of price (of 5 Workers Flats) : Rs. 109.49 Lacs.

2. Expected timing of receipt of cash flows : During the financial year 2014-15

3. Carrying amount of such assets : Rs. 4.50 Lacs

(h) Amounts of net cash flows attributable to the operating, investing and financing activities of the discontinuing operation during the current financial reporting period

The same has been disclosed in Cash Flow Statement.


Mar 31, 2013

As at 31.03.2013 As at 31.03.2012 Rs. in Lacs Rs. in Lacs

1. CONTINGENT LIABILITIES & COMMITMENTS

1.1 Contigent Liabilities

a) Claims against the company not 5,331.60 1,835.59 acknowledged as debts

b) Bills discounted 249.80 1,643.13

1.2 Capital Commitments

Estimated amount of contracts remaining to 5.52 21.33 be executed on capital account and not provided for

2. The Board for Industrial and Financial Reconstruction (BIFR) declared the company as a sick company vide its order dated 12th December, 2005 under the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). BIFR passed an order under section 17(3) of SICA & sanctioned a rehabilitation scheme vide its order dated 12,h March, 2007 with the cut off date fixed as 31st March, 2007, which was further amended vide order dated 25th May, 2007. The scheme came into effect from the date of issue of the sanctioned scheme and its provisions are binding on all concerned. Relevant extracts from the sanctioned scheme are given below:-

C. SALE OF MOHALI ASSETS

The scheme envisages sale of land and building and other infrastructure of the Mohali unit (Punjab) and shifting of the plant and machinery to Vadodara and utilizing the sale proceeds for meeting the liabilities of the secured lenders and workers.

D. RELIEFS & CONCESSIONS: FIs & Banks

To waive past interest/compound interest/LD/penal damages etc. from the date of the first default to respective institutions and banks and to agree to collect the principal outstanding as on the cut-off-date in instalments as shown in the cash flow statement, starting from December 2008. The default date for this purpose of waiver for all institutions and banks from which relief is sought is listed in annexure III to the scheme.

To agree to levy 6% per annum interest from 1.10.2008 until the dues are paid and to convert the debentures into Term Loan.

Conversion of Working Capital limits into WCTL by Bankers.

Conversion of part principal into equity, as per SEBI guidelines/pricing formula.

Reschedule payment of principal so that it is repaid in 33 quarterly instalments starting from December, 2008.

Banks to provide need based LC/LG facilities from time to time assessed at Rs.5,054 Lakh for the year 2007-08.

Ceding of pari-passu charge in favour of Working Capital Bankers to secure their WCTL, exposure.

Promoters/Shareholders/JCTEL

Write down of existing equity by 90%, immediately after sanction of the Scheme.

Promoters to convert Share Application Money into equity capital as per SEBI formula.

Personal Guarantee of Shri Arjun Thapar, MD to the exposure of FIs & Banks.

Promoters to bring in Rs. 25 crores as promoters'' contribution in the shape of equity.

Pledge of entire Promoter''s Shareholding (post rehabilitation) with FIs and Banks.

Sale of Mohali land and building and utilization of proceeds thereof for reduction of debt of institutions/banks and settling workers'' liability.

To continue to induct nominees of lead bank and lead FIs on the board of company.

Workers (Mohali Plant)

The workers shall extend full cooperation for sale of land and buildings to the company at Mohali and for shifting the plant and machinery to Vadodara.

To agree to shift to Vadodara on the terms and conditions as applicable to the employees at Vadodara in the event of their giving consent to shift to Vadodara works.

Those not willing to get shifted, to collect their payments etc. in arrears in accordance with the law.

To withdraw the legal cases pending with various courts filed by them upon receiving the terminal dues.

Government of Punjab

To consider to grant permission for closure of Black & White Picture Tube plant and Watch unit as these are non- operational since 1991; and

To consider waiver of minimum demand charges, interest etc. from PSEB during lock out and non-operational periods and refund of security deposit.

Government to consider permitting sale and conversion of end use of land of industrial plots at A-32, Indl. Phase-VIII, Mohali and A-27, Phase-VII, Mohali.

The Sales Tax Deptt. of Punjab has not raised any demand whatsoever. With the sale of land and building of the Mohali unit & shifting of Plant, the Sales tax liability, if any, shall be deemed to have been extinguished. As no liability has arisen the assessments pending, if any, shall be deemed to have been completed.

Government of Gujarat

Extension of Sales Tax (CST & VAT) concession/exemption expiring in May, 2006 for a further period of 10 years;

Exemption of Octroi duty for a period of 10 years;

Exemption from payment of Electricity Duty for a period of 10 years; Central Government

Withdrawal of demand notices for PF contribution on wages/salaries during the lock out period.

Waiver of interest, liquidated damages and penal interest on delayed payments of Provident Fund.

Exemption from SEBI guidelines for reduction/de-rating of equity; allotment of equity shares to promoters and associates on a preferential basis as envisaged in the Scheme.

Income Tax Department to consider exempting the company from the provisions of section 115JB & Fringe Benefit Tax and capital gains tax on sale of Mohali assets under the Income Tax Act during the period of rehabilitation.

The Ministry of Commerce, (Director General Foreign Trade) to extend the Export Obligation (EO) period under EPCG scheme for a further period of 5 years from the cut off date (31.3.2007).

E. OTHER STIPULATIONS

If the company commits default towards repayment of principal instalments or payment of interest as per the sanctioned scheme or any combination, FIs / Banks reserves the right to charge interest on the defaulted amount at top of the band together with liquidated damages of 2% p.a. thereon till the date of clearance of default or FIs / Banks shall have the right to convert its entire overdue into fully paid up equity shares of JCTEL during the currency of the loans as per SEBI guidelines, or otherwise but with the permission of Hon''ble BIFR, FIs / Banks also reserves the right to revoke the package of rehabilitation with the prior approval of BIFR and in such event of revocation, the decision of FIs / Banks shall be final and binding on the borrower and/or guarantors. In case of FIs / Banks exercise the right of revocation, the financial rehabilitation sanctioned or granted to JCTEL shall be treated as withdrawn and the terms and the conditions of the original loan agreements or documents shall come into force as if no such financial rehabilitation were ever granted to JCTEL. Further, FIs / Banks shall have the right to adjust payment received under the present package of financial rehabilitation against outstanding dues in terms of the original loan agreements/documents.

3 A. The impact of the scheme approved by the Hon''ble BIFR, on the accounts of the company for the year under review for which appropriate effect was required to be given are as follows :-

(a) As per the scheme, interest is to be provided @ 6% p.a. on loans from banks and FIs w.e.f. October 1,2008.

The company has started accruing interest @ 6% per annum on Term Loans & Working Capital Term Loans outstanding from 1st October, 2008.

(b) However, the Hon''ble BIFR vide order dated 12th November, 2008, has stipulated that Fl(s)/banks would neither raise any claim for payment of interest w.e.f. 1 st October, 2008 in respect of installments, as envisaged in the sanctioned scheme to be read along-with the cash flow statement, nor would they take coercive action in this regard, until issuance of further direction(s) by the Board. The installment''s of the balance principal outstanding has been released to Banks/Financial Institutions who have communicated their sanctions. Since Bank of Baroda and Indian Overseas Bank have opted for OTS, they have not been paid installments towards balance principal outstanding.

Starting from the quarter January to March 2009, the company started paying the balance principal outstanding of Term loans & Working Capital Term Loan after adjusting the amount converted to equity shares and upfront payment already made, on a deferral basis (over a period of 33 quarterly installments), except payment to Vijaya Bank as the said bank had not sent confirmation to the rehabilitation scheme approved by the Hon''ble BIFR on 12th March, 2007 till the end of 31st March, 2013. However, the Company has defaulted in payment of principal amount of Loans of Rs 4105.33 Lacs to Banks / Financial Institutions for eight quarters starting from 1st April, 2011 to 31st March, 2013. This is in contravention of rehabilitation scheme announced by Board for Industrial and Financial Reconstruction (BIFR) vide its order dated 12th March, 2007. The Company was unable to meet its obligations towards repayment of quarterly installments due in respect of term/working capital term loans as per BIFR sanctioned scheme, due to non availability of working capital limits as envisaged in the sanctioned scheme and sluggish market conditions during the year.

The relevant extract of such scheme, in case Company commits default, is re-produced as under: -

"If the company commits default towards repayment of principal instalments or payment of interest as per the sanctioned scheme or any combination, FIs / Banks reserves the right to charge interest on the defaulted amount at top of the band together with liquidated damages of 2% p.a. thereon till the date of clearance of default or FIs / Banks shall have the right to convert its entire overdue into fully paid up equity shares of JCTEL during the currency of the loans as per SEBI guidelines, or otherwise but with the permission of Hon''ble BIFR, FIs / Banks also reserves the right to revoke the package of rehabilitation with the prior approval of BIFR and in such event of revocation, the decision of FIs / Banks shall be final and binding on the borrower and/or guarantors. In case FIs / Banks exercise the right of revocation, the financial rehabilitation sanctioned or granted to JCTEL shall be treated as withdrawn and the terms and the conditions of the original loan agreements or documents shall come into force as if no such financial rehabilitation were ever granted to JCTEL. Further, FIs / Banks shall have the right to adjust payment received under the present package of financial rehabilitation against outstanding dues in terms of the original loan agreements/documents."

The Company has approached IFCI-The Operating Agency with Modified Debt Restructuring Scheme (MDRS) in the month of February, 2012. A meeting of secured lenders was held in the month of April, 2012 & secured lenders whose interest is being affected have given their consent for the proposed Modified Debt Restructuring Scheme (MDRS). IFCI-The Operating Agency has submitted the aforesaid Modified Debt Restructuring Scheme (MDRS) to the Hon''ble BIFR in the month of October, 2012. Besides sale of Land & Building, MDRS envisages sale of surplus assets such as Plant & Machinery along- with Other Miscellaneous Assets and Flats, and sale/mortgage of vacant land at Vadodara, also contains re-schedulement of repayment of secured loan and interest thereon within the scheme period. The amount collected from disposal of such surplus assets shall be used to address the dues of secured lenders as per original sanctioned scheme and dues of workers as per Memorandum of Settlement. Hon''ble BIFR after hearing all concerned parties vide its interim order dated 29.01.2013, has approved the sale of surplus assets as envisaged in MDRS namely 168 workers flats at Mohali, idle Plant & Machinery at Mohali which is no longer required to be relocated to Vadodara and also the surplus land up to 175 acres at the company''s unit at Vadodara. Assets Sale Committee (ASC) has been entrusted and authorized to work on the modalities for conducting sale of aforesaid surplus assets. The matter of re-schedulement of repayment of secured loan and interest thereon is under consideration of Hon''ble BIFR. It was not feasible to determine the area & relevant value of Surplus Land at Vadodara. Accordingly the same is shown as part of Fixed Assets.

(c) An Asset Sale Committee which was constituted in earlier years for the sale of land and building of the Mohali unit, is evaluating all options to sell the land and there is no change in status of same as at 31 st March, 2013. As decided, before finalizing the sale, permission from the Hon''ble BIFR will be taken. As decided and approved by Hon''ble BIFR, the sale proceeds will be kept in a no lien interest bearing account with the Scheduled Bank, and its utilization will be decided by the Hon''ble BIFR. The Trust and Retention already opened with the Allahabad Bank.

(d) In view of the deemed sanction of the Income Tax Department, as per section 19(2) of SICA, no provision for Minimum Alternate Tax is required to be made nor is the remission or cessation of interest liability subject to tax under section 41 (1) of The Income Tax Act, 1961 since reliefs/concessions provided in the sanctioned scheme under section 17(3) have an over riding effect on the provisions of the Income Tax Act, 1961.

(e) No interest has been provided on the unsecured loans as per the sanctioned scheme.

(f) The Company entered into a Memorandum of Settlement with the worker''s unions at Mohali, Punjab, towards crystallizing their dues in the month of May, 2011 and the compensation amount had been settled at Rs 40 Crores. An application for modification of BIFR scheme was submitted before Board for Industrial & Financial Reconstruction. Crystallized dues of workers/staff will be settled out of the sale proceeds of assets at Mohali units as per the sanctioned scheme along with the surplus assets and hence no provision for the dues to workers/staff has been made in the current year ended 31 st March, 2013.

(g) In view of the proposed introduction of GST, extension of Sales Tax (CST & VAT) concession/exemption for a further period of 10 years which has expired in May, 2006, is not likely to come. However, after changes in Sales Tax laws, the same has not been extended & approved by the Gujarat Govt accordingly VAT is being paid on goods sold locally and CST on goods sold in an interstate transaction. Further input tax credit is being claimed on VAT paid.

(h) The Scheme has granted exemption of octroi & electricity duty for a period of 10 years but the same has not been approved by the Gujarat Government & it is being borne by the Company. 29 B. The impact of the scheme approved by the Hon''ble BIFR, on the accounts of the company for the previous years for which appropriate effect was required to be given are as follows :-

(a) The working capital facilities from the banks (other than banks covered under OTS as per the sanctioned scheme) have been converted into working capital term loan as per the sanctioned scheme. Since the working capital loans of SBI & SBICI, who had earlier opted for OTS, were assigned to Asset Reconstruction Company (India) Limited (ARCIL) in the financial year 2009-2010, their loans have also been converted into WCTL.

(b) Indian Overseas Bank and Bank of Baroda had not been issued equity equivalent to 15% of principal outstanding as on the cut-off date as per the BIFR sanctioned scheme in the FY 07-08 as they had opted for OTS.

(c) Out of total Debentures of Rs 500 Lacs issued under Series I to Vijaya Bank, 15% of the aforesaid amount of debentures amounting to Rs 75 Lacs has been converted into equity shares in the financial year 2009-2010. The balance amount of Rs.425 lacs have been shown as Term Loan from the financial year 2009-2010 in terms of Sanctioned Scheme. The security created in favour of Debenture Trustees through Trust Deed is in the process of being released.

(d) Similarly, Debentures of Rs 3,000 Lacs issued under Series II & Series III to IFCI have been shown as Term Loan from the financial year 2009-2010 in terms of Sanctioned Scheme. The security created in favour of Debenture Trustees through Trust Deed is in the process of being released.

(e) As per BIFR sanctioned scheme, the share capital of Rs. 7,502.26 lacs has been allotted to the promoters/Fls/Banks in the financial year 2007-2008. During the year 2009-10, the share capital of Rs.34.78 lacs has been allotted to ARCIL pursuant to BIFR order, since SBI & SBICI have assigned their debt to ARCIL.

4. As per Sanctioned BIFR Scheme, the revival of the company is dependant on sale of land and building at Mohali. As envisaged in sanctioned scheme, the company''s net worth could not turn positive in the 4th year of its implementation due to delay in sale of land & building.

On the assumption that the revival of the company will take place in near future, the accounts of the company have been prepared on a "going concern" basis on an assumption made by the management that adequate finances and opportunities '' would be available in the foreseeable future to enable the company to operate on a profitable basis. Accordingly, the company has been treated as a going concern.

5. (a) The company propose to sell the Mohali Assets which includes Land, Building, Plant & Machinery, Other Miscellaneous Assets and Flat in its entirety on "As is where is" and "As is what is basis". The Company has estimated that all such Assets will fetch a value in excess of book value of Fixed Assets of Rs. 2,122.91 Lacs and capital work in progress of Rs. 26.98 Lacs at Mohali at 31 st March, 2013. Accordingly no provision for impairment of Fixed Assets at Mohali has been considered necessary by the management. The Fixed Assets at Mohali consist of Land, Factory Building, Plant & Machinery, Electrical Installation, Storage & Water System, Office Equipment, Factory Equipment, Furniture & Fittings, Vehicles, and Flats.

(b) Considering above, Fixed Assets at Mohali i.e. Land, Factory Building, Plant & Machinery, Electrical Installation, Storage & Water System, Office Equipment, Factory Equipment, Furniture & Fittings, Vehicles & Flats, have been retired from Fixed Assets category & has been shown under the head "Othei Non Current Assets". This is in compliance with Accounting Standard -10 on Fixed Assets issued by Ministry of Corporate Affairs, Government of India which requires disclosures of assets retired and held for sale separately.

(Please Refer Note No. -13)

(c) It is estimated that inventory at Mohali unit which has to be transferred to the Vadodara unit as per the scheme aggregating to Rs. 1,376.44 Lacs contains a substantial loss on impairment which will be estimated and provided for only after these have been shifted to Vadodara Unit. The financial impact of this is not ascertainable. The losses are understated to this extent.

6. The Company estimates the deferred tax (charge) / credit using the applicable rate of taxation based on the impact of timing differences between financial statements and estimated taxable income for the current period. Since there is no reasonable virtual certainty of realisation, deferred tax asset (Net) of Rs. 16,441.58 Lacs (Previous year Rs. 15,586.57 lacs) has not been recognized.

7. Balance Confirmation:

(a) In the opinion of the management, Sundry Debtors & 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. During the Financial year ended 31 st March 2013 confirmatory letters have been sent to the parties, requesting them to confirm the account balances as on 31 st March, 2013. Lot of parties has not yet confirmed the balances as on the date of signing the f inancials. Accordingly Sundry debtors and creditors balances and other receivables/payables are subject to confirmation and have been shown as per values appearing in the books of accounts and have been treated as good for recovery/payment unless specifically provided for.

(b) Balance of Banks and FIs as appearing in the books of accounts are as mentioned in the sanctioned scheme approved by the Hon''ble Bl FR and these balances are after accounting for 15% equity share allotment made to them in the financial year 2007-08 and 2009-10, upfront payment and installments paid up to finance! year ending 31 st March, 2013. There is no change in the bank balances of those banks which have not yet sent the confirmation to the sanctioned scheme or those which have opted for OTS.

8. Related party disclosures:

Names of related parties and description of relationship

a) Related party where significant influence exist: India International Airways Limited

b) Associates : JCT Limited

c) Key Management Personnel: Mr Arjun Thapar

d) Relative of Key Management Personnel: Mrs. Nayantara Thapar, Ms. Shivani Thapar

e) Companies over which persons described in

(c) & (d) are able to exercise significant influence : APJ Financial Services Private Limited

Team Plus Securities Limited

9. The Company has taken certain commercial premises and vehicles under cancellable operating lease arrangements. The lease period varies from two to three years with the option to extend the same with mutual consent. The total aggregate Lease Rentals recognized as expense in the Statement of profit & loss under cancellable operating lease was Rs. 131.96 Lacs (Previous Period: Rs. 129.23 Lacs).

10. The Company has incurred as on 31 st March, 2013, Rs. 140.95 lacs towards product development falling under the definition of Intangible Assets as per the Accounting Standard-26. The product is still under development stage. The same is expected to be capitalized during the financial year 2013-2014. The gross carrying amount of such product development under progress as at 31 st March, 2013 is Rs 140.95 Lacs. Such product development expenditure shall be amortised over 120 months on straight line basis starting from the month subsequent to the month of its activation for commercial use.

11. Information on Segment Results:

The company is engaged in the manufacture of Colour Picture Tubes & Deflection Yoke which is in the context of Accounting Standard 17 on Segment Reporting, issued by the Institute of Chartered Accountants of India is considered as the only business segment. Presently company has three plants designed to manufacture Color Picture Tube & Deflection Yoke. Two Plants are situated at Mohali & one plant is situated at Baroda. There is no production activity in Mohali Plants & considering on the basis of deployed Assets, such plant is not covered under the definition of reportable geographical segment. Accord- ingly, there are no reportable geographical segments.

12. Discontinuing Operations:

(a) Description of Discontinuing Operations

(i) Company had set-up a manufacturing plant at A-32, Industrial Area, Phase - VIII, Mohali for manufacture of Color Picture Tubes. The installed capacity of this plant was 10 Lacs units per annum. Company also had manufacturing plant for manufacture of Deflection Yokes unit at A-27, Industrial Area, Phase-VII, Mohali.

(ii) The Company started incurring losses from the year 1997-98 due to non-availability of working capital resulting in low capacity utilization. Further the decline in prices of colour picture tubes on account of cheap imports, also contributed to the losses. A reference was made by the Company to this Hon''ble Board under the relevant provisions of Sick Industrial Companies (Special Provisions) Act, 1985 (''SICA'') in 2002, when the accumulated losses exceeded its net worth as on 31 st March, 2002. The JCTEL was declared a sick industrial company within the meaning of SICA by this Hon''ble Board vide its order dated 12.12.2005. Thereafter, the JCTEL submitted its proposal for revival and rehabilitation and sanction was accorded to the scheme formulated by the Company vide order dated 12.03.2007 passed by this Hon''ble Board (''Sanctioned Scheme'').

(iii) Both plants stopped active production in the year 2001.

(iv) As per the BIFR sanctioned scheme, the revival of the company is dependant on the sale of land and building at Mohali. The plant and machinery were proposed to be shifted to Baroda Unit. The Company has approached IFCI-The Operating Agency with Modified Debt Restructuring Scheme (MDRS) in the month of February, 2012. A meeting of secured lenders was held in the month of April, 2012 & secured lenders whose interest is being affected have given their consent for the proposed Modified Debt Restructuring Scheme (MDRS). IFCI-The Operating Agency has submitted the aforesaid Modified Debt Re- structuring Scheme (MDRS) to the Hon''ble BIFR in the month of October, 2012. Besides sale of Land & Building, MDRS envisages sale of surplus assets such as Plant & Machinery along-with Other Miscellaneous Assets and Flats, and sale/ mortgage of vacant land at Vadodara, also contains re-schedulement of repayment of secured loan and interest thereon within the scheme period. Hon''ble BIFR after hearing all concerned parties vide its interim order dated 29.01.2013, has approved the sale of surplus assets as envisaged in MDRS namely 168 flats at Mohali, idle Plant & Machinery at Mohali which is no longer required to be relocated to Vadodara and also the surplus land up to 175 acres at the company''s unit at Vadodara. Assets Sale Committee (ASC) has been entrusted and authorized to work on the modalities for conducting sale of aforesaid surplus assets. It was not feasible to determine the area & relevant value of Surplus Land at Vadodara. Accordingly the same is shown as part of Fixed Assets.

(b) Business or Geographical Segment.

(i) Company is engaged only in manufacture of Color Picture Tube, and Deflection Yoke. This is the only Business Segment of the Company.

(ii) Presently company has three plants designed to manufacture Color Picture Tube & Deflection Yoke. Two Plants are situated at Mohali & one plant is situated at Baroda. These have not been categorized under Accounting Standard 17 on Segment Reporting, issued by Ministry of Corporate Affairs as reportable geographical segments. However for limited purpose of categorization under discontinuing operations Baroda Plant & Mohali Plant can be considered as two geographical segments. As per BIFR Scheme, Company has to sell its Assets at both plants at Mohali which we can categorize as one the identifiable geographical segment.

(c) Date & Nature of Initial Disclosure

The date & nature of such disclosure is described as under :-

(i) During the year ended 31 st March 2012, the Asset Sale Committee (ASC) initiated an action by advertising to sell the Land & Building at Mohali, consisting of two plots i.e. at A-32, Industrial Area, Phase - VIII and A-27, Industrial Area, Phase-VII, Mohali as per the Sanctioned Scheme of BIFR. The advertisement was issued in the month of December, 2011 & September, 2012. The sale constituted only of Land & Building at Mohali.

(ii) Board of Directors of the Company in its meeting held in the month of February, 2012 recommended to sell Plant & Machinery, Other Miscellaneous Assets & Flats at Mohali. Secured Lenders accorded their approval for said proposal. MDRS has been filed by Operating Agency (IFCI) with Hon''ble BIFR in the month of October, 2012, which includes the aforesaid assets. (iii) The Asset Sale Committee had released the advertisement in the month of December, 2011 & September, 2012, detailing the formal plan for sale of land & building at Mohali. The Sanctioned Scheme envisaged sale of only Land & Building at Mohali. The Plant & Machinery was to be shifted to Baroda to augment production capacity. The board of directors recommended sale of other Assets which include Plant & Machinery, Other Miscellaneous Assets & Flats, since the production capacity at Vadodara plant has already been enhanced. The same has been accepted by secured lenders & MDRS has been submitted by IFCI-The Operating Agency with Hon''ble BIFR for its sanction which is under consideration. Hon''ble BIFR after hearing all concerned parties vide its interim order dated 29.01.2013, has approved the sale of surplus assets as envisaged in MDRS namely 168 workers flats at Mohali, idle Plant & Machinery at Mohali which is no longer required to be relocated to Vadodara and also the surplus land up to 175 acres at the company''s unit at Vadodara. Assets Sale Committee (ASC) has been entrusted and authorized to work on the modalities for conducting sale of aforesaid surplus assets. It was not feasible to determine the area & relevant value of Surplus Land at Vadodara. Accordingly the same is shown as part of Fixed Assets.

(iv) The Company has not yet entered into any binding agreement for sale of substantial assets attributable to the discontinu- ing operation with any party. The decision to sell Land & Building with proposal to sell of Plant & Machinery, Other Miscellaneous Assets & Flats and its acceptance by board of directors and secured lenders, is sufficient to disclose it as discontinuing operations.

(d) Date or period in which the discontinuance is expected to be completed if known or determinable

Since MDRS has been submitted with Hon''ble BIFR & is under consideration, the date or period in which the discontinuation is expected to be completed is not determinable as on date. Assets sale committee shall act upon the guidelines of BIFR and the procedure of sale of assets shall start thereafter.

13. Comparative Figures

Figures for the previous year have been regrouped/reclassified wherever necessary to make them comparable with those of the current year.


Mar 31, 2012

Note-1.1

a) Equity Shares : The company has only one class of equity shares having face value of Rs. 1/- each. Each holder of equity share is entitled to one vote per share.

b) Share holders are entitled to dividend, if any, declared by the company. The dividend is payable in Indian rupees. The dividend. If any, declared by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

c) Re-payment of equity share capital shall be made at the time of winding-up of the company. The company can also partly buy back equity as and when decided by the company in accordance with the provisions of The Companies Act, 1956.

Note -2.1: Securities given to secured lenders

a) Term loans from the financial institutions and indian Banks are secured by an equitable mortgage on all the immovable properties at Mohali & Vadodara and hypothecation of the movable assets of the company, present and future, save and except prior charges on specified movables in favour of the bankers for working capital requirements.

b) Working Capital term loans from Indian Banks and working capital facilities from foreign banks are secured by first charge by way of hypothecation of raw materials, goods in process, finished goods, stores and spares, book debts and receivables of the Company, present and future and second charge on the immovable proper-ties at Mohali and Vadodara.

c) In terms of the BIFR sanctioned scheme, outstanding principal amount of the working capital facilities from banks (other than banks covered under OTS as per sanctioned scheme) as on 31st March, 2007 have been converted into working capital term loans. These will additionally be covered by a pari-pasu charge on the fixed assets along with the term lenders, after completion of documentation in this regard.

d) Principal amount of working capital from banks covered under OTS have been shown under working capital facilities. As mentioned in the sanctioned scheme (Refer note no. 28(A) (c)) foreign banks are to be paid by way of one time settlement (OTS)

Note - 2.2 : Terms of repayment

a) Rate of Interest

As per BIFR sanctioned scheme interest rate of 6% p.a. is payable to Financial Institutions and Indian Banks referred to in Note No. 3.2 above starting from 1.10.2008.

b) Repayment

i) Secured loans from Financial Institutions and Indian Banks are repayable in 33 quarterly instalments starting from Dec, 2008 to Mar, 2017 (Refer Note No. 28A (b))

ii) Foreign banks referred to in Note No. 3(1 )(c) and 3(iii)(a) are to be settled by way of OTS to be paid out of the sale proceeds of land & building at Mohali, which is yet to materialize.

Note - 2.3

An amount of Rs. 750 lacs was paid to IFCI, Operating Agency for distribution among Financial Institutions and Indian Banks as per BIFR orders. A sum of Rs. 27.99 lacs is still lying with the Operating Agency as undistributed amount and the same has been reduced from the amount of term loans and working capital term loans.

Note-2.4

As per BIFR orders no interest is being provided on the ICD. Interest accrued and due on ICD represents balance as on 31.03.2007. These ICDs are payable alongwith interested accued & due after the scheme period.

Note - 2.5

Non Convertible Debentures subscribed by M/s Escort Mutual Fund on 18.11.1996 for a period of 17 months and 30 days @ 21.5% p.a. which were redeemable on 23.11.99, will be now paid as per terms of the sanctioned scheme. As per BIFR order, no interest is being provided on these NCDs. Interest accrued and due on NCDs represents balance as on 31.03.2007. These NCDs are payable alongwith interest accrued & due after the scheme period.

Note- 3.1

As per BIFR Order, dues shown under "Other Long Terms Liabilities" are to be settled partly over the scheme period and the balance thereafter. No interest is payable to unsecured creditors on their dues.

The information required to be disclosed under the Micro, Small & Medium Enterprises Development Act, 2006 (MSMED), has been determined to the extent such parties have been identified on the basis of information available with the company. During the year ended 31st March, 2012, company has not received any confirmation or intimation from any party that it is covered under the Micro, Small & Medium Enterprises Development Act, 2006 (MSMED).

Rs. 20.49 lacs are payable to two parties namely M/s. H.K. Industries and M/s Royal Pack Industries. These two parties are registered under the said Act to whom the company owes an amount for more than 45 days as at the Balance Sheet date which are carrying since 31st March, 2007. Dues of the creditors as at 31st March, 2007 are to be addressed as per terms of BIFR sanctioned scheme. However, in respect of balances outstanding as at 31st March, 2007, no provision for interest has been made in view of the BIFR order passed under the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA), wherein it is stated that no interest on outstanding amounts due to creditors standing as on the cut off date i.e. 31st March, 2007, shall be payable. Besides, there are no transactions with these parties in the reporting year. In view of above, the information required under the Micro, Small & Medium Enterprises Development Act, 2006 (MSMED), has not been furnished.

NOTE -4 : LONG TERM LOANS & ADVANCES

The Board of Directors of the Company in their meeting held in the month of Feb., 2012 recommended to sell the Plant & Machinery, Other Miscellaneous Assets & Flats at Mohali, besides Land & Building. Secured Lenders have given their approval for said proposal. Subsequently Modified Debt Restructring Scheme (MDRS) has been filed by Operating Agency (IFCI) with BIFR in the month of June, 2012. Considering the above, Fixed Assets at Mohali i.e. Land, Factory Building, Plant & Machinery, Electrical Istallation, Storage & Water System, Office Equipment, Factory Equipment, Furniture & Fittings, Vehicles & Flats, have been retired from Fixed Assets category & have been shown under the head Other Non Current Assets. This is in compliance with Accounting Standard-10 on Fixed Assets issued by Ministry of Corporate Affairs, Government of India which requires disclosures of assets retired and held for sale separately. Since the sale of such assets is not expected to be consummated in the next 12 months, such assets have been categorized under Non Current Category.

Note -4.1: Inventory valuation method

a) Finished goods have been valued at lower of cost or net realizable value. In the case of finished goods, cost is determined by taking material, labour and related factory overheads including depreciation, excise duly and fixed production overheads arrived at by the cost sheet of the last month of the financial year. Fixed overheads are allocated for inclusion in the cost of conversion on the basis of normal levels of production capacity or actual production whichever is higher.

b) Raw materials, stores and spares have been valued at cost by using weighted average basis.

c) Goods in process have been valued at raw material cost incurred up to the stage of production plus conversion cost apportioned on the basis of raw material cost of goods in process.

d) Loose tools and stock in transit have been valued at cost.

e) As per past practice, no value is placed on stock of scrap since its estimated net realizable/usable value is not accurately ascertainable.

As at 31.03.2012 As at 31.03.2011 Rs. in Lacs Rs. in Lacs

NOTE - 5 -:CONTINGENT LIABILITIES & COMMITMENTS

Note - 5.1: Contingent Liabilities

a) Claims against the company not acknowledged as debts 1,835.59 1,878.68

b) Bills discounted 1,643.13 745.96

Note - 5.2 : Capital Commitments

Estimated amount of contracts remaining to be executed on capital 21.33 3.21 account and not provided for

NOTE - 6

The Board for Industrial and Financial Reconstruction (BIFR) declared the company as a sick company vide its order dated 12th December, 2005 under the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). BIFR passed an order under section 17(3) of SICA & sanctioned a rehabilitation scheme vide its order dated 12th March, 2007 with the cut off date fixed as 31st March, 2007, which was further amended vide order dated 25th May, 2007. The scheme came into effect from the date of issue of the sanctioned scheme and its provisions are binding on all concerned. Relevant extracts from the sanctioned scheme are given below:-

A REHABILITATION SCHEME (a) CONTOURS

Sr. Parameter Particulars No.

1. Cut off date 31 -March-2007

2. Waivers (upto cut off date) Waiver of past interest /CI/LD/ penai interest, etc.

3. Shifting of Plant & The entire plant at Mohali unit Machinery of Mohali plant will be shifted to Vadodara as to Vadodara new line-III for the manufacture of 21st True Flat Tubes. The land & building at the Mohali unit will be sold at an expected price of Rs. 11,900 lakhs. Workers at the Mohali plant will be given employment at the Vadodara plant and in the event of any worker not opting for shifting, he/she would be paid their legal dues as per the settlement.

4. Utilisation of sale Sale of Land & Building at Mohali proceeds of Land & Unit and utilization of the Building at Mohali Unit proceeds (expected at about Rs. 11,900 lakhs) towards payment of workers'dues (about Rs. 1,000 lakhs), payment of foreign banks towards settlement of their liabilities (Rs. 3,000 lakhs) and payment of balance amount of Rs. 7,900 lakhs to lenders in the ratio of outstanding dues for FIs & core irregularities for the banks. In case the realization from sale of Land & Building at Mohali unit falls below Rs. 11,900 lakhs, then the promoters will meet the shortfall. In case proceeds are more than Rs. 11,900 lakhs, the appropriation shall be as under i) Upto Rs. 3,000 lakhs - Increase to be paid to secured lenders after paying crystallized workers dues.ii) Beyond Rs. 3,000 lakhs - To be utilized by the company for adding capacities with prior approval of BIFR.

5. Future Interest Rate Interest @ 6% p.a. for term loans/working capital term loans w.e.f 1.10.2008 & there will be no running cash credit working capital facility with banks.

6. Conversion of Principal Conversion of 15% of principal Term loans/WCTL into outstanding of Term Loans/WCTL Equity (Rs. 5,400 lakhs) into equity shares of the company after reduction of existing equity by 90%.

7. Promoters' contribution Equity : Rs. 2,500 lakh (Rs. 750 lakhs towards upfront payment Rs. 1,750 lakhs towards capital expenditure for setting up facilities of 14th CPT and captive power generation), In addition, the company will also convert share application money into equity at par after write down of existing equity.

8. Sanction of need based Non Fund Based Limit - Need based additional (L/C/LG limits) 2007-08 : Rs. 5,054 lakhs

9. Security 1. Pledge of entire share holding of promoters post restructuring (after equity w/off, conversion & fresh induction). 2. Personal Guarantee of Sh. Arjun Thapar on the entire Loans of FIs & Banks. 3. Ceding of pari-passu charge to working capital banks for their WCTL exposure. 4. Opening of Trust & Retention Account with lead bank. 10. Capital Reduction To write down existing paid up equity share capital (Rs. 3,450 lakhs) by 90%.

11. Workers' dues JCTEL/promoters to settle the workers past liability at Rs. 1,000 lakhs (as estimated) to be paid out of sale proceeds of Mohali Unit, as per appropriation proposed in Item No.4.

(b) REPAYMENT SCHEDULE

Sr.No. Parameter Particulars

1. Repayment of balance In 33 quarterly instalments principal-Term Loans & commencing from Dec, 2008 to Mar, working capital term 2017. loans

(c) ONE TIME SETTLEMENT PROPOSAL FOR FOREIGN BANKS

Sr.No Parameter Particulars

1. OTS PROPOSAL One time settlement of dues with foreign banks towards settlement of their entire liabilities for Rs. 3,000 lakhs (36.36% of principal) payable out of the Mohali sale proceeds.

C. SALE OF MOHALI ASSETS

The scheme envisages sale of land and building and other infrastructure of the Mohali unit (Punjab) and shifting of the plant and machinery to Vadodara and utilizing the sale proceeds for meeting the liabilities of the secured lenders and workers.

D. RELIEFS & CONCESSIONS: FIs & Banks

- To waive past interest/compound interest/LD/penal damages etc. from the date of the first default to respective institutions and banks and to agree to collect the principal outstanding as on the cut-off-date in instalments as shown in the cash flow statement, starting from December 2008. The default date for this purpose of waiver for all institutions and banks from which relief is sought is listed in Annexure III to the scheme.

- To agree to levy 6% per annum interest from 1.10.2008 until the dues are paid and to convert the debentures into term loan.

- Conversion of Working Capital limits into WCTL by Bankers.

- Conversion of part principal into equity, as per SEBI guidelines/pricing formula.

- Reschedule payment of principal so that it is repaid in 33 quarterly instalments starting from December, 2008.

- Banks to provide need based LC/LG facilities from time to time assessed at Rs. 5,054 lakhs for the year 2007-08.

- Ceding of pari-passu charge in favour of Working Capital Bankers to secure their WCTL, exposure.

Promoters/Shareholders/JCTEL

- Write down of existing equity by 90%, immediately after sanction of the Scheme.

- Promoters to convert Share Application Money into equity capital as per SEBI formula.

- Personal Guarantee of Shri Arjun Thapar, MD to the exposure of FIs & Banks.

- Promoters to bring in Rs. 25 crores as promoters' contribution in the shape of equity.

- Pledge of entire Promoter's Shareholding (post rehabilitation) with FIs and Banks.

- Sale of Mohali land and building and utilization of proceeds thereof for reduction of debt of institutions/banks and settling workers' liability.

- To continue to induct nominees of lead bank and lead FIs on the board of company.

Workers (Mohali Plant)

- The workers shall extend full cooperation for sale of land and buildings to the company at Mohali and for shifting the plant and machinery to Vadodara.

- To agree to shift to Vadodara on the terms and conditions as applicable to the employees at Vadodara in the event of their giving consent to shift to Vadodara works.

- Those not willing to get shifted, to collect their payments etc. in arrears in accordance with the law.

- To withdraw the legal cases pending with various courts filed by them upon receiving the terminal dues. Government of Punjab

- To consider to grant permission for closure of Black & White Picture Tube plant and Watch unit as these are non-operational since 1991; and

- To consider waiver of minimum demand charges, interest etc. from PSEB during lock out and non-operational periods and refund of security deposit.

- Government to consider permitting sale and conversion of end use of land of industrial plots at A-32, Indl. Phase-VIII, Mohali and A-27, Phase-VII, Mohali.

- The Sales Tax Deptt. of Punjab has not raised any demand whatsoever. With the sale of land and building of the Mohali unit & shifting of Plant, the Sales tax liability, if any, shall be deemed to have been extinguished. As no liability has arisen the assessments pending, if any, shall be deemed to have been completed.

Government of Gujarat

- Extension of Sales Tax (CST & VAT) concession/exemption expiring in May, 2006 for a further period of 10 years;

- Exemption of Octroi duty for a period of 10 years;

- Exemption from payment of Electricity Duty for a period of 10 years;

Central Government

- Withdrawal of demand notices for PF contribution on wages/salaries during the lock out period.

- Waiver of interest, liquidated damages and penal interest on delayed payments of Provident Fund.

- Exemption from SEBI guidelines for reduction/de-rating of equity; allotment of equity shares to promoters and associates on a preferential basis as envisaged in the Scheme.

- Income Tax Department to consider exempting the company from the provisions of section 115JB & Fringe Benefit Tax and capital gains tax on sale of Mohali assets under the Income Tax Act during the period of rehabilitation.

- The Ministry of Commerce, (Director General Foreign Trade) to extend the Export Obligation (EO) period under EPCG scheme for a further period of 5 years from the cut off date (31.3.2007).

E. OTHER STIPULATIONS

If the company commits default towards repayment of principal instalments or payment of interest as per the sanctioned scheme or any combination, FIs/Banks reserves the right to charge interest on the defaulted amount at top of the band together with liquidated damages of 2% p.a. thereon till the date of clearance of default or FIs/Banks shall have the right to convert its entire overdues into fully paid up equity shares of JCTEL during the currency of the loans as per SEBI guidelines, or otherwise but with the permission of Hon'ble BIFR, FIs/Banks also reserves the right to revoke the package of rehabilitation with the prior approval of BIFR and in such event of revocation, the decision of FIs/Banks shall be final and binding on the borrower and/or guarantors. In case FIs/Banks exercise the right of revocation, the financial rehabilitation sanctioned or granted to JCTEL shall be treated as withdrawn and the terms and the conditions of the original loan agreements or documents shall come into force as if no such financial rehabilitation were ever granted to JCTEL. Further, FIs/Banks shall have the right to adjust payment received under the present package of financial rehabilitation against outstanding dues in terms of the original loan agreements/documents.

NOTE-7

The impact of the scheme approved by the Hon'ble BIFR, on the accounts of the company for the year under review for which appropriate effect was required to be given are as follows :-

(a) As per the scheme, interest is to be provided @ 6% p.a. on loans from banks and FIs w.e.f. October 1,2008 and the company has started accruing interest @ 6% per annum on Term Loans & Working Capital Term Loans outstanding.

(b) However, the Hon'ble BIFR vide order dated 12th November, 2008, has stipulated that Fl(s)/banks would neither raise any claim for payment of interest w.e.f. 1st October, 2008 in respect of installments, as envisaged in the sanctioned scheme to be read along-with the cash flow statement, nor would they take coercive action in this regard, until issuance of further direction(s) by the Board. The installment's of the balance principal outstanding has been released to Banks/Financial Institutions who have communicated their sanctions. Since Bank of Baroda and Indian Overseas Bank have opted for OTS, they have not been paid installments towards balance principal outstanding.

Starting from the quarter January to March 2009, the company has started paying the balance principal outstanding of Term loans & Working Capital Term Loan after adjusting the amount converted to equity shares and upfront payment already made, on a deferral basis (over a period of 33 quarterly installments), except payment to Vijaya Bank as the said bank had not sent confirmation to the rehabilitation scheme approved by the Hon'ble BIFR on 12th March, 2007 till the end of 31st March, 2012.

The Company has defaulted in payment of principal amount of Loans of Rs. 1846.49 Lacs to Banks & Financial Institutions for four quarters starting from 1st April, 2011 to 31st March, 2012. This is in contravention of rehabilitation scheme approved by Board for Industrial and Financial Reconstruction (BIFR) vide its order dated 12th March, 2007. The Company was unable to meet its obligations towards repayment of quarterly installments due in respect of term/working capital term loans as per BIFR sanctioned scheme, due to non availability of working capital limits as envisaged in the sanctioned scheme and sluggish market conditions during the year.

The relevant extract of such scheme, in case Company commits default, is re-produced as under:-

"If the company commits default towards repayment of principal instalments or payment of interest as per the sanctioned scheme or any combination, FIs/Banks reserves the right to charge interest on the defaulted amount at top of the band together with liquidated damages of 2% p.a. thereon till the date of clearance of default or FIs/Banks shall have the right to convert its entire overdue into fully paid up equity shares of JCTEL during the currency of the loans as per SEBI guidelines, or otherwise but with the permission of Hon'ble BIFR, FIs/Banks also reserves the right to revoke the package of rehabilitation with the prior approval of BIFR and in such event of revocation, the decision of FIs/Banks shall be final and binding on the borrower and/or guarantors. In case of FIs/Banks exercise the right of revocation, the financial rehabilitation sanctioned or granted to JCTEL shall be treated as withdrawn and the terms and the conditions of the original loan agreements or documents shall come into force as if no such financial rehabilitation were ever granted to JCTEL. Further, FIs/Banks shall have the right to adjust payment received under the present package of financial rehabilitation against outstanding dues in terms of the original loan agreements/documents."

The Company has approached IFCI-The Operating Agency with Modified Debt Restructuring Scheme (MDRS) in the month of February, 2012. A meeting of secured lenders was held in the month of April, 2012 & secured lenders whose interest is being affected have given their consent for the proposed Modified Debt Restructuring Scheme (MDRS). IFCI- The Operating Agency has submitted the aforesaid Modified Debt Restructuring Scheme (MDRS) to the Hon'ble BIFR in the month of June, 2012 and the same is under consideration.

(c) (i)An Asset Sale Committee has already been constituted for the sale of land and building of the Mohali unit but before finalizing the sale, permission from the Hon'ble BIFR will be taken. The sale proceeds will be kept in a no lien interest bearing account with the Scheduled Bank, and its utilization will be decided by the Hon'ble BIFR. Accordingly Trust and Retention account has been opened with the Allahabad Bank.

(ii) Conversion of leasehold land to freehold land is still pending.

(d) Changes effected in previous years

(i) The working capital facilities from the banks (other than banks covered under OTS as per the sanctioned scheme) have been converted into working capital term loan as per the sanctioned scheme. Since the working capital loans of SBI & SBICI, who had earlier opted for OTS, were assigned to Asset Reconstruction Company (India) Limited (ARCIL) in the financial year 2009-2010, their loans have also been converted into WCTL.

(ii) Indian Overseas Bank and Bank of Baroda had not been issued equity equivalent to 15% of principal outstanding as on the cut-off date as per the BIFR sanctioned scheme in the FY 07-08 as they had opted for OTS.

(iii) Out of total Debentures of Rs. 500 lacs issued under Series I to Vijaya Bank, 15% of the aforesaid amount of debentures amounting to Rs. 75 lacs has been converted into equity shares in the financial year 2009-2010. The balance amount of Rs. 425 lacs have been shown as Term Loan from the financial year 2009-2010 in terms of Sanctioned Scheme. The security created in favour of Debenture Trustees through Trust Deed is in the process of being released.

(iv) Similarly, Debentures of Rs. 3,000 lacs issued under Series II & Series III to IFCI have been shown as Term Loan from the financial year 2009-2010 in terms of Sanctioned Scheme. The security created in favour of Debenture Trustees through Trust Deed is in the process of being released.

(v) As per BIFR sanctioned scheme, the share capital of Rs. 7,502.26 lacs has been allotted to the promoters/Fls/Banks in the financial year 2006-2007. During the year 2009-10, the share capital of Rs. 34.78 lacs has been allotted to ARCIL pursuant to BIFR order, since SBI & SBICI have assigned their debt to ARCIL.

(e) In view of the deemed sanction of the Income Tax Department, as per section 19(2) of SICA, no provision for Minimum Alternate Tax is required to be made nor is the remission or cessation of interest liability subject to tax under section 41 (1) of The Income Tax Act, 1961 since reliefs/concessions provided in the sanctioned scheme under section 17(3) have an over riding effect on the provisions of the Income Tax Act, 1961.

(f) For continuing uninterrupted supplies/services, in addition to payment against current dues of unsecured creditors, some of the payments against the past dues have also been made, and the gross amount paid during the year does not exceed the overall limits prescribed under the sanctioned scheme.

(g) No interest has been provided on the unsecured loans as per the sanctioned scheme.

(h) The Company has entered into a Memorandum of Settlement with the worker's unions at Mohali, Punjab, towards crystallizing their dues in the month of May, 2011. The compensation amount has been settled at Rs 40 Crores. An application for modification of BIFR scheme has been submitted before Board for Industrial & Financial Reconstruction. Crystallized dues of workers/staff will be settled out of the sale proceeds of the Mohali units as per the sanctioned scheme and hence no provision for the dues to workers/staff has been made in the current year.

(i) In view of the proposed introduction of GST, extension of Sales Tax (CST & VAT) concession/exemption for a further period of 10 years which has expired in May, 2006, is not likely to come. However, after changes in Sales Tax laws, the same has not been extended & approved by the Gujarat Govt accordingly VAT is being paid on goods sold locally and CST on goods sold in an interstate transaction. Further input tax credit is being claimed on VAT paid.

(j) The Scheme has granted exemption of octroi & electricity duty for a period of 10 years but the same has not been approved by the Gujarat Government & it is being borne by the Company.

NOTE -8

As per Sanctioned BIFR Scheme, the revival of the company is dependant on sale of land and building at Mohali. As envisaged in sanctioned scheme, the company's net worth could not turn positive in the 4th year of its implementation due to delay in sale of land & building.

On the assumption that the revival of the company will take place in near future, the accounts of the company have been prepared on a "going concern" basis on an assumption made by the management that adequate finances and opportunities would be available in the foreseeable future to enable the company to operate on a profitable basis. Accordingly, the company has been treated as a going concern.

NOTE-9

(a) After obtaining consent of all secured lenders whose interests are being affected, IFCI-The Operating Agency has submitted Modified Debt Restructuring Scheme (MDRS) to the Hon'ble BIFR in the month of June, 2012 and the same is under consideration. Besides Land & Building, MDRS envisages sale of Plant & Machinery along-with Other Miscellaneous Assets and Flats. The amount collected from disposal of such additional assets shall be used to address the dues of secured lenders as per original sanctioned scheme and dues of workers as per Memorandum of Settlement.

The company proposes to sell in entirety "As is where is and as is what is basis" the Mohali Assets which includes Land, Building, Plant & Machinery, Other Miscellaneous Assets and Flats. The Company has estimated that all such Assets will fetch a value in excess of book value of Fixed Assets of Rs. 2122.62 lacs and capita! work in progress of Rs. 33.19 lacs at Mohali at 31st March, 2012. Accordingly no provision for impairment of Fixed Assets at Mohali has been considered necessary by the management. The Fixed Assets at Mohali consist of Land, Factory Building, Plant & Machinery, Electrical Installation, Storage & Water System, Office Equipment, Factory Equipment, Furniture & Fittings, Vehicles, and Flats.

(b) Considering above, Fixed Assets at Mohali i.e. Land, Factory Building, Plant & Machinery, Electrical Installation, Storage & Water System, Office Equipment, Factory Equipment, Furniture & Fittings, Vehicles & Flats, have been retired from Fixed Assets category & has been shown under the head "Other Non Current Assets". This is in compliance with Accounting Standard -10 on Fixed Assets issued by Ministry of Corporate Affairs, Government of India which requires disclosures of assets retired and held for sale separately.

(Please Refer Note No. -13)

(c) It is estimated that inventory at Mohali unit which has to be transferred to the Vadodara unit as per the scheme aggregating to Rs. 1,376.44 lacs contains a substantial loss on impairment which will be estimated and provided for only after these have been shifted to Vadodara Unit. The financial impact of this is not ascertainable. The losses are understated to this extent.

NOTE-10

The Company estimates the deferred tax (charge)/credit using the applicable rate of taxation based on the impact of timing differences between financial statements and estimated taxable income for the current period. Since there is no reasonable virtual certainty of realisation, deferred tax asset (Net) of Rs. 15,586.57 lacs (Previous year Rs. 14,491.20 lacs) has not been recognized.

Notes :

(a) The estimates of future salary increases, considered in actuarial valuation, takes into account the inflation, seniority, promotion and other relevant factors.

(b) The company has a fund with the Life Insurance Corporation under the Employees Gratuity Scheme and the fund value as on 31st March 2012 was Rs. 400.60 lacs (Previous Year Rs. 395.24 lacs).

(c) As per valuation by Actuary liability towards Gratuity recognized in the Balance Sheet as on 31st March 2012 was Rs. 586.62 lacs (Previous Year Rs. 580.35 lacs).

NOTE - 11: BALANCE CONFIRMATION

(a) Debtors and creditors balances and other receivables/payables are subject to confirmation and have been shown as per values appearing in the books of accounts and have been treated as good for recovery/payment unless specifically provided for.

(b) Debits to parties account include Rs. 1,244.14 lacs for the recovery of CST from various parties which have been incorporated on the basis of an understanding with the party for which credit notes are anticipated to be received by the management. The financial impact of same is not ascertainable.

(c) Balance of Banks and FIs as appearing in the books of accounts are as mentioned in the sanctioned scheme approved by the Hon'ble BIFR and these balances are after accounting for 15% equity share allotment made to them in the financial year 2007-08 and 2009-10, upfront payment and installments paid upto financial year ending 31st March, 2012. There is no change in the bank balances of those banks which have not yet sent the confirmation to the sanctioned scheme or those which have opted for OTS.

NOTE - 12 : RELATED PARTY DISCLOSURES:

Names of related parties and description of relationship

a) Related parties where significant influence exist : India International Airways Limited

b) Associates : JCT Limited

c) Key Management Personnel: Mr Arjun Thapar

d) Relative of Key Management Personnel : Mrs. Nayantara Thapar

e) Companies over which persons described in

(c) & (d) are able to exercise significant influence : APJ Financial Services Private Limited

Team Plus Securities Limited

NOTE-13

The Company has taken certain commercial premises and vehicles under cancellable operating lease arrangements. The lease period varies from two to three years with the option to extend the same with mutual consent. The total aggregate Lease Rentals recognized as expense in the statement of profit & loss under cancellable operating lease was Rs. 129.23 lacs (Previous Period: Rs. 128.70 lacs).

NOTE-14

The Company has incurred as on 31st March, 2012, Rs. 245.05 lacs towards product development falling under the definition of Intangible Assets as per the Accounting Standard-26. The product is still under development stage. The same is expected to be capitalized during the financial year 2012-2013. The gross carrying amount of such product development under progress as at 31st March, 2012 is Rs. 245.05 Lacs. Such product development expenditure shall be amortised over 120 months on straight line basis starting from the month subsequent to the month of its activation for commercial use.

NOTE -15

Information on Segment Results:

The company is engaged in the manufacture of Colour Picture Tubes & Deflection Yokes which in the context of Accounting Standard 17 on Segment Reporting, issued by the Institute of Chartered Accountants of India is considered as the only business segment. Presently company has three plants designed to manufacture Colour Picture Tube & Deflection Yoke. Two Plants are situated at Mohali & one plant is situated at Baroda. There is no production activity in Mohali plants & considering on the basis of deployed assets, such plant is not covered under the definition of reportable geographical segment. Accordingly, there are no reportable geographical segments.

NOTE - 16 : DISCONTINUING OPERATIONS

(a) Description of Discontinuing Operations

(i) Company had set-up a manufacturing plant at A-32, Industrial Area, Phase - VIII, Mohali for manufacture of Color Picture Tubes. The installed capacity of this plant was 10 Lacs units per annum. Company also had manufacturing plant for manufacture of Deflection Yokes unit at A-27, Industrial Area, Phase - VII, Mohali.

(ii) The Company started incurring losses from the year 1997-98 due to non-availability of working capital resulting in low capacity utilization. Further the decline in prices of colour picture tubes on account of cheap imports, also contributed to the losses. A reference was made by the Company to this Hon'ble Board under the relevant provisions of Sick Industrial Companies (Special Provisions) Act, 1985 ('SICA') in 2002, when the accumulated losses exceeded its net worth as on 31st March, 2002. The JCTEL was declared a sick industrial company within the meaning of SICA by this Hon'ble Board vide its order dated 12.12.2005. Thereafter, the JCTEL submitted its proposal for revival and rehabilitation and sanction was accorded to the scheme formulated by the Company vide order dated 12.03.2007 passed by this Hon'ble Board ('Sanctioned Scheme').

(iii) Both plants stopped active production in the year 2001.

(iv) As per the BIFR sanctioned scheme, the revival of the company is dependant on the sale of land and building at Mohali. The plant and machinery were proposed to be shifted to Baroda Unit. Company has approached IFCI- The Operating Agency with Modified Debt Restructuring Scheme (MDRS) in the month of February, 2012.

A meeting of secured lenders was held in the month of April, 2012 & secured lenders whose interests are being affected have given their consent for the proposed Modified Debt Restructuring Scheme (MDRS). IFCI-The Operating Agency has submitted the aforesaid Modified Debt Restructuring Scheme (MDRS) to the Hon'ble BIFR in the month of June, 2012 and the same is under consideration. Besides Land & Building, MDRS envisages sale of Plant & Machinery along-with Other Miscellaneous Assets and Flats. Such Assets consist of Fixed Assets at Mohali i.e. Land, Factory Building, Plant & Machinery, Electrical Installation, Storage & Water System, Office Equipment, Factory Equipment, Furniture & Fittings, Vehicles & Flats. The company propose to sell all the above assets in its entirety on "As is where is" and "as is what is" basis.

(b) Business or Geographical Segment.

(i) Company is engaged only in manufacture of Color Picture Tube, and Deflection Yoke. This is the only Business Segment of the Company.

(ii) Presently company has three plants designed to manufacture Colour Picture Tube & Deflection Yoke. Two Plants are situated at Mohali & one plant is situated at Baroda. There is no production activity in Mohali plants & considering on the basis of deployed assets, such plant is not covered under the definition of reportable geographical segment. Accordingly, there are no reportable geographical segments. As per BIFR sanctioned scheme, Company has to sell its Assets at both plants at Mohali which we can categorise as one of the identifiable geographical segment.

(c) Date & Nature of Initial Disclosure

The date & nature of such disclosure is described as under :-

(i) During the year, the Asset Sale Committee (ASC) has initiated an action by advertising to sell the Land & Building at Mohali, consisting of two plots i.e. at A-32, Industrial Area, Phase - VIII and A-27, Industrial Area, Phase-VII, Mohali as per the Sanctioned Scheme of BIFR. The advertisement was issued in the month of December, 2011. The sale constituted only of Land & Building at Mohali.

(ii) Board of Directors of the Company in its meeting held in the month of February, 2012 recommended to sell Plant & Machinery, Other Miscellaneous Assets & Flats at Mohali. Secured Lenders accorded their approval for said proposal. MDRS has been filed by Operating Agency (IFCI) with Hon'ble BIFR in the month of June, 2012, which includes the aforesaid assets.

(iii) The Asset Sale Committee had released the advertisement in the month of December, 2011 detailing the formal plan for sale of land & building at Mohali. The Sanctioned Scheme envisaged sale of only Land & Building at Mohali. The Plant & Machinery was to be shifted to Baroda to augment production capacity. The board of directors recommended sale of other Assets which include Plant & Machinery, Other Miscellaneous Assets & Flats, since the production capacity at Vadodara plant has already been enhanced. The same has been accepted by secured lenders & MDRS has been submitted by IFCI - The Operating Agency with Hon'ble BIFR for its sanction which is under consideration.

(iv) The Company has not yet entered into any binding agreement for sale of substantial assets attributable to the discontinuing operation with any party. The decision to sell Land & Building with proposal to sell of Plant & Machinery, Other Miscellaneous Assets & Flats and its acceptance by Board of Directors and secured lenders, is sufficient to disclose it as discontinuing operations.

(d) Date or period in which the discontinuance is expected to be completed if known or determinable Since MDRS has been submitted with Hon'ble BIFR & is under consideration, the date or period in which the discontinuation is expected to be completed is not determinable as on date. Assets sale committee shall act upon the guidelines of BIFR and the procedure of sale of assets shall start thereafter.

(g) Amount of pre-tax profit or loss from ordinary activities attributable to the discounting operation during the current financial reporting period, and the income tax expenses related thereto Pre-tax

profit/(Loss) (303.37)

Income Tax on such Profit/Loss Nil

(h) Amounts of net cash flows attributable to the operating, investing, and financing activities of the discontinuing operation during the current financial reporting period The same has been disclosed in Cash Flow Statement.

(i)_ Previous Period Figures

Since the decision to sell Plant & Machinery & other Misc. Assets & Flats relating to discontinued operations has been taken in the financial year 2011 -2012, the previous period figures has not been furnished.


Mar 31, 2011

As at 31.03.2011 As at 31.03.2010

Rs. in Lacs Rs. in Lacs

1. CONTINGENT LIABILITIES :

a) Claims against the Company not acknowledged as debts 1,878.68 1,880.18

b) Bills discounted 745.96 4,728.17

2. EXCHANGE FLUCTUATION:

Exchange differences arising on foreign currency transactions relating to revenue items have been recognised as income or expense in the period in which they arise. During the current year, there was a gain of Rs. 14.18 lacs (Previous year gain of Rs. 74.16 lacs) which has been shown as part of other income.

3. The information required to be disclosed under the Micro, Small & Medium Enterprises Development Act, 2006 (MSMED), has been determined to the extent such parties have been identified on the basis of information available with the company. During the year ended 31st March, 2011, company has not received any confirmation or intimation from any party that it is covered under the Micro, Small & Medium Enterprises Development Act, 2006 (MSMED).

M/s. H.K. Industries and M/s Royal Pack Industries are two parties registered under the said Act to whom the company owes an amount for more than 45 days as at the Balance Sheet date which are carrying since 31st March, 2007. Dues of the creditors as at 31s1 March, 2007 are to be addressed as per terms of sanctioned scheme of BIFR. However, in respect of balances outstanding as at 31st March, 2007, no provision for interest has been made in view of the BIFR order passed under the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA), wherein it is stated that no interest on outstanding amounts due to creditors standing as on the cut off date i.e. 31st March, 2007, shall be payable. Besides, there are no transactions with these parties in the reporting year. In view of above, the information required under the Micro, Small & Medium Enterprises Development Act, 2006 (MSMED), has not been furnished.

4. The Board for Industrial and Financial Reconstruction (BIFR) declared the company as a sick company vide its order dated 12th December, 2005 under the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). BIFR passed an order under section 17(3) of SICA & sanctioned a rehabilitation scheme vide its order dated 12th March, 2007 with the cut off date fixed as 31s1 March, 2007, which was further amended vide order dated 25th May, 2007. The scheme came into effect from the date of issue of the sanctioned scheme and its provisions are binding on all concerned. Relevant extracts from the sanctioned scheme

C. SALE OF MOHALI ASSETS

The scheme envisages sale of land and building and other infrastructure of the Mohali unit (Punjab) and shifting of the plant and machinery to Vadodara and utilizing the sale proceeds for meeting the liabilities of the secured lenders and workers.

D. RELIEFS & CONCESSIONS:

FIs & Banks

To waive past interest/compound interest/LD/penal damages etc. from the date of the first default to respective institutions and banks and to agree to collect the principal outstanding as on the cut-off-date in instalments as shown in the cash flow statement, starting from December 2008. The default date for this purpose of waiver for all institutions and banks from which relief is sought is listed in annexure III to the scheme.

To agree to levy 6% per annum interest from 1.10.2008 until the dues are paid and to convert the debentures into Term Loan.

Conversion of Working Capital limits into WCTL by Bankers.

Conversion of part principal into equity, as per SEBI guidelines/pricing formula.

Reschedule payment of principal so that it is repaid in 33 quarterly instalments starting from December, 2008.

Banks to provide need based LC/LG facilities from time to time assessed at Rs. 5,054 lacs for the year 2007-08.

Ceding of pari-passu charge in favour of Working Capital Bankers to secure their WCTL, exposure.

Promoters/Shareholders/JCTEL

Write down of existing equity by 90%, immediately after sanction of the Scheme.

Promoters to convert Share Application Money into equity capital as per SEBI formula.

Personal Guarantee of Shri Arjun Thapar, MD to the exposure of FIs & Banks.

Promoters to bring in Rs. 25 crores as promoters' contribution in the shape of equity.

Pledge of entire Promoter's Shareholding (post rehabilitation) with FIs and Banks.

Sale of Mohali land and building and utilization of proceeds thereof for reduction of debt of institutions/banks and settling workers' liability.

To continue to induct nominees of lead bank and lead FIs on the board of company.

Workers (Mohali Plant)

The workers shall extend full cooperation for sale of land and buildings to the company at Mohali and for shifting the plant and machinery to Vadodara.

To agree to shift to Vadodara on the terms and conditions as applicable to the employees at Vadodara in the event of their giving consent to shift to Vadodara works.

Those not willing to get shifted, to collect their payments etc. in arrears in accordance with the law. To withdraw the legal cases pending with various courts filed by them upon receiving the terminal dues.

Government of Punjab

To consider to grant permission for closure of Black & White Picture Tube plant and Watch unit as these are non- operational since 1991; and

To consider waiver of minimum demand charges, interest etc. from PSEB during lock out and non-operational periods and refund of security deposit.

Government to consider permitting sale and conversion of end use of land of industrial plots at A-32, Indl. Phase-VIII, Mohali and A-27, Phase-VII, Mohali.

The Sales Tax Deptt. of Punjab has not raised any demand whatsoever. With the sale of land and building of the Mohali unit & shifting of Plant, the Sales tax liability, if any, shall be deemed to have been extinguished. As no liability has arisen the assessments pending, if any, shall be deemed to have been completed.

Government of Gujarat

Extension of Sales Tax (CST & VAT) concession/exemption expiring in May, 2006 for a further period of 10 years;

Exemption of Octroi duty for a period of 10 years;

Exemption from payment of Electricity Duty for a period of 10 years;

Central Government

Withdrawal of demand notices for PF contribution on wages/salaries during the lock out period.

Waiver of interest, liquidated damages and penal interest on delayed payments of Provident Fund.

Exemption from SEBI guidelines for reduction/de-rating of equity; allotment of equity shares to promoters and associates on a preferential basis as envisaged in the Scheme.

Income Tax Department to consider exempting the company from the provisions of section 115JB & Fringe Benefit Tax and capital gains tax on sale of Mohali assets under the Income Tax Act during the period of rehabilitation.

The Ministry of Commerce, (Director General Foreign Trade) to extend the Export Obligation (EO) period under EPCG scheme for a further period of 5 years from the cut off date (31.3.2007).

E OTHER STIPULATIONS

If the company commits default towards repayment of principal installments or payment of interest as per the sanctioned scheme or any combination, FIs / Banks reserves the right to charge interest on the defaulted amount at top of the band together with liquidated damages of 2% p.a. thereon till the date of clearance of default or FIs / Banks shall have the right to convert its entire over dues into fully paid up equity shares of JCTEL during the currency of the loans as per SEBI guidelines, or otherwise but with the permission of Hon'ble BIFR, FIs / Banks also reserves the right to revoke the package of rehabilitation with the prior approval of BIFR and in such event of revocation, the decision of FIs / Banks shall be final and binding on the borrower and/or guarantors. In case of FIs / Banks exercise the right of revocation, the financial rehabilitation sanctioned or granted to JCTEL shall be treated as withdrawn and the terms and the conditions of the original loan agreements or documents shall come into force as if no such financial rehabilitation were ever granted to JCTEL. Further, FIs / Banks shall have the right to adjust payment received under the present package of financial rehabilitation against outstanding dues in terms of the original loan agreements/documents.

5. The impact of the scheme approved by the Hon'ble BIFR, on the accounts of the company for the year under review for which appropriate effect was required to be given are as follows :-

(a) As per the scheme, interest is to be provided @ 6% p.a. on loans from banks and FIs w.e.f. October 1, 2008.

The company from 1st October, 2008 has started accruing interest @ 6% per annum on Term Loans & Working Capital Term Loans outstanding.

(b) However, the Hon'ble BIFR vide order dated 12th November, 2008, has stipulated that Fl(s)/banks would neither raise any claim for payment of interest w.e.f. 1st October, 2008 in respect of installments, as envisaged in the sanctioned scheme to be read along-with the cash flow statement, nor would they take coercive action in this regard, until issuance of further direction(s) by the Board. The installment's of the balance principal outstanding has been released to Banks/Financial Institutions who have communicated their sanctions. Since Bank of Baroda and Indian Overseas Bank have opted for OTS, they have not been paid installments towards balance principal outstanding.

Starting from the quarter January to March 2009, the company has started paying the balance principal outstanding of Term loans & Working Capital Term Loan after adjusting the amount converted to equity shares and upfront payment, on a deferral basis (over a period of 33 quarterly installments), except payment to Vijaya Bank as the said bank had not sent confirmation to the rehabilitation scheme approved by the Hon'ble BIFR on 12th March, 2007 till the end of this financial year. Amount of Rs. 1,580.14 lacs has been repaid during the year.

(c) (i) An Asset Sale Committee has been constituted for the sale of land and building of the Mohali unit but before finalizing the sale, permission from the Hon'ble BIFR will be taken. The sale proceeds will be kept in a no lien interest bearing account with the Scheduled Bank, and its utilization will be decided by the Hon'ble BIFR.

(ii) Conversion of leasehold land to freehold land is pending.

(iii) Trust and Retention Bank A/c required to be opened with Scheduled Bank, shall be opened upon sale of Mohali Plant.

(d) The working capital facilities from the banks (other than banks covered under OTS as per the sanctioned scheme) have been converted into working capital term loan as per the sanctioned scheme. Since the working capital loans of SBI & SBICI, who had earlier opted for OTS, were assigned to Asset Reconstruction Company (India) Limited (ARCIL) in the financial year 2009 -2010, their loans have also been converted into WCTL.

(e) In view of the deemed sanction of the Income Tax Department, as per section 19(2) of SICA, no provision for Minimum Alternate Tax is required to be made nor is the remission or cessation of interest liability subject to tax under section 41(1) of The Income Tax Act, 1961 since reliefs/concessions provided in the sanctioned scheme under section 17(3) have an over riding effect on the provisions of the Income Tax Act, 1961.

(f) For continuing uninterrupted supplies/services, in addition to payment against current dues of unsecured creditors, some of the payments against the past dues have also been made and the gross amount paid during the year does not exceed the overall limits prescribed under the sanctioned scheme.

(g) No interest has been provided on the unsecured loans as per the sanctioned scheme.

(h) The Company has entered into a Memorandum of Settlement with the worker's unions at Mohali, Punjab, towards crystallizing their dues in the month of May, 2011. The compensation has been increased from Rs. 10 crores to Rs. 40 crores. An application for modification of BIFR scheme has been submitted before Board for Industrial & Financial Reconstruction. Crystallized dues of workers/staff will be settled out of the sale proceeds of the Mohali units as per the sanctioned scheme and hence no provision for the dues to workers/staff has been made in the current year.

(i) Out of total Debentures of Rs. 500 lacs issued under Series I to Vijaya Bank, 15% of the aforesaid amount of debentures amounting to Rs. 75 lacs has been converted into equity shares in the financial year 2009- 2010. The balance amount of Rs. 425 lacs which was appearing as Debentures under the Schedule C 'Secured Loans', till the financial year ending 31st March, 2009 have been shown as Term Loan in the financial year 2009-2010 in terms of Sanctioned Scheme. The security created in favour of Debenture Trustees through Trust Deed is in the process of being released.

(j) Similarly, Debentures of Rs. 3,000 lacs issued under Series II & Series III to IFCI which was appearing as Debentures under the Schedule C 'Secured Loans', till the financial year ended 31st March, 2009 have been shown as Term Loan in the financial year 2009-2010 in terms of Sanctioned Scheme. The security created in favour of Debenture Trustees through Trust Deed is in the process of being released.

(k) Indian Overseas Bank and Bank of Baroda had not been issued equity equivalent to 15% of principal outstanding as on the cut-off date as per the BIFR sanctioned scheme in the FY 07-08 as they had opted for OTS.

(l) In view of the proposed introduction of GST, Extension of Sales Tax (CST & VAT) concession/exemption for a further period of 10 years which has expired in May, 2006, is not likely to come. However, after changes in Sales Tax laws, the same has not been extended & approved by the Gujarat Govt accordingly VAT is being paid on goods sold locally and CST on goods sold in an interstate transaction. Further input tax credit is being claimed on VAT paid.

(m) The Scheme has granted exemption of octroi & electricity duty for a period of 10 years but the same has not been approved by the Gujarat Government & it is being borne by the Company.

6. As per BIFR sanctioned scheme, the share capital of Rs. 7,502.26 lacs has been allotted to the promoters/FIs/ Banks in the financial year 2006-2007. During the year 2009-10, the share capital of Rs. 34.78 lacs has been allotted to ARCIL pursuant to BIFR order, since SBI & SBICI have assigned their debt to ARCIL. The revival of the company is dependant on sale of land and building at Mohali, shifting of plant and machinery and repayment of dues to various banks and financial institutions. Assuming that this takes place as anticipated in the sanctioned revival scheme, the company's net worth could not turn positive in the 4th year of its implementation due to delay in sale of Mohali Assets. On the assumption that the revival of the company will take place as anticipated, the accounts of the company have been prepared on a "going concern" basis on an assumption made by the management that adequate finances and opportunities would be available in the foreseeable future to enable the company to operate on a profitable basis. Accordingly, the company has been treated as a going concern.

7. (a) As per the sanctioned scheme and assumption by the management that the sale of land & building at Mohali will fetch a value in excess of book value of Fixed Assets of Rs. 2250 lacs and capital work in progress of Rs. 33.20 lacs at Mohali at 31st March, 2011, no provision for impairment of Fixed Assets at Mohali has been considered necessary by the management. The Fixed Assets at Mohali consist of Land, Factory Building, Plant & Machinery, Electrical Installation, Storage & Water System, Office Equipment, Factory Equipment, Furniture & Fittings, Vehicles.

(b) It is estimated that inventory at Mohali unit which has to be transferred to the Vadodara unit as per the scheme aggregating to Rs.1,376.44 lacs contains a substantial loss on impairment which will be estimated and provided for only after these have been shifted to Vadodara Unit. The financial impact of same is not ascertainable. The losses are understated to this extent.

8. The Company estimates the deferred tax (charge) / credit using the applicable rate of taxation based on the impact of timing differences between financial statements and estimated taxable income for the current period. Since there is no reasonable virtual certainty of realisation, deferred tax asset (Net) of Rs. 14,491.20 lacs (Previous year Rs. 14,442.51 lacs) has not been recognized.

9. Employee Benefits:

(a) Defined Contribution Plans

The Company has recognized the contribution/liability in the Profit & Loss Account for the financial year 2010-11.

10. Balance confirmation

(a) Debtors and creditors balances and other receivables/payables are subject to confirmation and have been shown as per values appearing in the books of accounts and have been treated as good for recovery/payment unless specifically provided for.

(b) Debits to a party's account include Rs. 3,563.35 lacs for the recovery of CST from various parties which have been incorporated on the basis of an understanding with the party for which credit notes are anticipated to be received by the management. The financial impact of same is not ascertainable.

(c) Balance of Banks and FIs as appearing in the books of accounts are as mentioned in the sanctioned scheme approved by the Hon'ble BIFR and these balances are after accounting for 15% equity share allotment made to them in the financial year 2007-08 and 2009-10, upfront payment and installments paid upto financial year ending 31st March, 2011. There is no change in the bank balances of those banks which have not yet sent the confirmation to the sanctioned scheme or those which have opted for OTS.

11. Related party disclosures:

Names of related parties and description of relationship

a) Related parties where significant influence exist : India International Airways Limited

b) Associates : JCT Limited

c) Key Management Personnel: Mr Arjun Thapar

d) Relative of Key Management Personnel: Mrs. Nayantara Thapar

e) Companies over which persons described in APJ Financial Services Private Limited (c) & (d) are able to exercise significant influence : Team Plus Securities Limited

12. The Company has taken certain commercial premises and vehicles under cancellable operating lease arrangements. The lease period varies from two to three years with the option to extend the same with mutual consent. The total aggregate Lease Rentals recognized as expense in the profit & loss account under cancellable operating lease was Rs. 128.70 lacs (Previous Period : Rs. 112.82 lacs).

13. During the financial year ended 31st March, 2011, the Company has incurred Rs. 114.81 lacs towards product development falling under the definition of Intangible Assets as per the Accounting Standard-26. The product is still under development stage. The same is expected to be capitalized during the financial year 2011-2012. The gross carrying amount of such product development under progress as at 31st March, 2011 is Rs. 114.81 lacs. Such product development expenditure shall be amortised over 120 months on straight line basis starting from the month subsequent to the month of its activation for commercial use.

14. During the year ended 31st March, 2011, Company has been assessed Fringe Benefit Tax (FBT) of Rs. 52.65 lacs for the financial year 2006-2007 & 2007-2008. The same has been shown in the Profit & Loss Account as tax adjustments of previous years. The Income Tax Department of the opinion that the same is payable as FBT is not a tax on Income and department did not consider the application of its exemption under BIFR Scheme.

15. Information on Segment Results:

The company is engaged in the manufacture of Colour Picture Tubes which in the context of Accounting Standard 17 on Segment Reporting, issued by the Institute of Chartered Accountants of India is considered as the only business segment. There are no geographical segments.

16. Comparative Figures:

Figures for the previous year have been regrouped/reclassified wherever necessary to make them comparable with those of the current year.

17. Sales include sale of scraps and sale of goods purchased for trading.


Mar 31, 2010

1. CONTINGENT LIABILITIES :

a) Claims against the Company not acknowledged as debts 1,880.18 1,927.92

b) Bills discounted 4,728.17 1,298.01

2. EXCHANGE FLUCTUATION:

Exchange differences arising on foreign currency transactions relating to revenue items have been recognised as income or expense in the period in which they arise. During the current year, there was a gain of Rs. 74.16 lacs (Previous year loss of Rs. 294.81 lacs) which has been adjusted under appropriate heads to which the transactions relate. Exchange differences on capital account are also adjusted in the profit and loss account.

3. The information required to be disclosed under the Micro, Small & Medium Enterprises Development Act, 2006 (MSMED), has been determined to the extent such parties have been identified on the basis of information available with the company. M/s. H.K. Industries and M/s Royal Pack Industries are two parties registered under the said Act to whom the company owes an amount for more than 45 days as at the Balance Sheet date. However, in respect of balances outstanding as at 31st March, 2007, no provision for interest has been made in view of the BIFR order passed under the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA), wherein it is stated that no interest on outstanding amounts due to creditors standing as on the cut off date i.e. 31st March, 2007, shall be payable. The aforesaid parties were among the creditors as at 31st March, 2007. Besides, there are no transactions with these parties in the reporting year. In view of above, the information required under the Micro, Small & Medium Enterprises Development Act, 2006 (MSMED), has not been furnished.

4. The Board for Industrial and Financial Reconstruction (BIFR) declared the company as a sick company vide its order dated 12th December, 2005 under the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). BIFR passed an order under section 17(3) of SICA & sanctioned a rehabilitation scheme vide its order dated 12th March, 2007 with the cut off date fixed as 31st March, 2007, which was further amended vide order dated 25th May, 2007. The scheme came into effect from the date of issue of the sanctioned scheme and its provisions are binding on all concerned. Relevant extracts from the sanctioned scheme are given below:-

A REHABILITATION SCHEME (a) Contours

Sr. No Parameter Particulars

1. Cut off date 31-March-2007

2. Waivers (upto cut off date) Waiver of past interest /CI/LD/penal interest, etc.

3. Shifting of Plant & The entire plant at Mohali unit will be shifted to Vadodara as new line-Ill Machinery of Mohali plant for the manufacture of 21" True Flat Tubes. The land & building at the to Vadodara Mohali unit will be sold at an expe- cted price of Rs. 11,900 lacs. Workers at the Mohali plant will be given employment at the Vadodara plant and in the event of any worker not opting for shifting, he/she would be paid their legal dues as per the settlement.

4. Utilisation of sale Sale of Land & Building at Mohali Unit and utilization of the proceeds proceeds of Land & (expected at about Rs.11,900 lakh) towards payment of workersdues Building at Mohali Unit (about Rs. 1,000 lakh), payment of fore- ign banks towards settlement of their liabil- ities (Rs. 3,000 lakh) and payment of balance amount of Rs.7,900 lakh to lenders in the ratio of outstanding dues for FIs & core irregularities for the banks. In case the realization from sale of Land & Building at Mohali unit falls below Rs. 11,900 lakh, then the promoters will meet the shortfall. In case proceeds are more than Rs. 11,900 lakh, the appropriation shall be as under

i) Upto Rs.3,000 lakh - Increase to be paid to secured lenders after paying crystallized workers dues. ii) Beyond Rs.3,000 lakh - To be utilized by the company for adding capacities with prior approval of BIFR.

5. Future Interest Rate Interest @ 6% p.a. for term loans/working capital term loans w.e.f 1.10.2008 & there will be no running cash credit working capital facility with banks.

6. Conversion of Principal Conversion of 15% of principal outstanding of Term Loans/WCfL Term loans / WCTL into (Rs.5,400 lakh) into equity shares of the company after reduction of Equity existing equity by 90%.

7 Promoters contribution Equity : Rs. 2,500 lakh (Rs. 750 lakh towards upfront payment + Rs. 1,750 lakh towards capital expenditure for setting up facilities of 14" CPT and captive power generation), In addition, the company will also convert share application money into equity at par after write down of existing equity.

8.Sanction of need based Non Fund Based Limit - Need based 2007-08 : Rs.5,054 lakh additional (L/C/LG limits)

9.Security 1.Pledge of entire share holding of promoters post restructuring (after equity w/off, conversion & fresh induction).

2.Personal Guarantee of Sh. Arjun Thapar on the entire Loans of FIs & Banks.

3.Ceding of pari-passu charge to working capital banks for their WCTL exposure.

4. Opening of Trust & Retention Account with lead bank.

10. Capital Reduction To write down existing paid up equity share capital (Rs. 3,450 lakh) by 90%.

11 Workers dues JCTEL/promoters to settle the workers past liability at Rs. 1,000 lakh (as estimated) to be paid out of sale proceeds of Mohali Unit, as per appropriation proposed in Item No.4.

(b) REPAYMENT SCHEDULE

Sr. No Parameter Particulars

1. Repayment of balance In 33 quarterly instalments commencing from Dec, 2008 to Mar, 2017. principal-Term Loans & working Capital term Loans

c) ONE TIME SETTLEMENT PROPOSAL FOR FOREIGN BANKS

Sr. No Parameter Particulars

1. OTS PROPOSAL One time settlement of dues with foreign banks towards settlement of their entire liabilities for Rs. 3,000 lakh (36.36% of principal) payable out of the Mohali sale proceeds.

No separate provision for contingencies is made as it would be met by the promoters upon crystallizing.

C. SALE OF MOHALI ASSETS

The scheme envisages sale of land and building and other infrastructure of the Mohali unit (Punjab) and shifting of the plant and machinery to Vadodara and utilizing the sale proceeds for meeting the liabilities of the secured lenders and workers.

D. RELIEFS & CONCESSIONS: FIs & Banks

To waive past interest/compound interest/LD/penal damages etc. from the date of the first default to respective institutions and banks and to agree to collect the principal outstanding as on the cut-off-date in instalments as shown in the cash flow statement, starting from December 2008. The default date for this purpose of waiver for all institutions and banks from which relief is sought is listed in annexure III to the scheme.

To agree to levy 6% per annum interest from 1.10.2008 until the dues are paid and to convert the debentures into Term Loan.

Conversion of Working Capital limits into WCTL by Bankers.

Conversion of part principal into equity, as per SEBI guidelines/pricing formula.

Reschedule payment of principal so that it is repaid in 33 quarterly instalments starting from December, 2008.

Banks to provide need based LC/LG facilities from time to time assessed at Rs.5,054 lakh for the year 2007-08.

Ceding of pari-passu charge in favour of Working Capital Bankers to secure their WCTL, exposure.

Promoters/Shareholders/JCTEL

Write down of existing equity by 90%, immediately after sanction of the Scheme.

Promoters to convert Share Application Money into equity capital as per SEBI formula.

Personal Guarantee of Shri Arjun Thapar, MD to the exposure of FIs & Banks.

Promoters to bring in Rs. 25 crores as promoters contribution in the shape of equity.

Pledge of entire Promoters Shareholding (post rehabilitation) with FIs and Banks.

Sale of Mohali land and building and utilization of proceeds thereof for reduction of debt of institutions/ banks and settling workers liability.

To continue, to induct nominees of lead bank and lead FIs on the board of company.

Workers (Mohali Plant)

The workers shall extend full cooperation for sale of land and buildings to the company at Mohali and for shifting the plant and machinery to Vadodara.

To agree to shift to Vadodara on the terms and conditions as applicable to the employees at Vadodara in the event of their giving consent to shift to Vadodara works.

Those not willing to get shifted, to collect their payments etc. in arrears in accordance with the law. To withdraw the legal cases pending with various courts filed by them upon receiving the terminal dues.

Government of Punjab

To consider to grant permission for closure of Black & White Picture Tube plant and Watch unit as these are non-operational since 1991; and

To consider waiver of minimum demand charges, interest etc. from PSEB during lock out and non- operational periods and refund of security deposit.

Government to consider permitting sale and conversion of end use of land of industrial plots at A-32, Indl. Phase-VIII, Mohali and A-27, Phase-VII, Mohali.

The Sales Tax Deptt. of Punjab has not raised any demand whatsoever. With the sale of land and building of the Mohali unit & shifting of Plant, the Sales tax liability, if any, shall be deemed to have been extinguished. As no liability has arisen the assessments pending, if any, shall be deemed to have been completed.

Government of Gujarat

Extension of Sales Tax (CST & VAT) concession/exemption expiring in May, 2006 for a further period of 10 years;

Exemption of Octroi duty for a period of 10 years;

Exemption from payment of Electricity Duty for a period of 10 years; Central Government Withdrawal of demand notices for PF contribution on wages/salaries during the lock out period.

Waiver of interest, liquidated damages and penal interest on delayed payments of Provident Fund.

Exemption from SEBI guidelines for reduction/de-rating of equity; allotment of equity shares to promoters and associates on a preferential basis as envisaged in the Scheme.

Income Tax Department to consider exempting the company from the provisions of section 115JB & Fringe Benefit Tax and capital gains tax on sale of Mohali assets under the Income Tax Act during the period of rehabilitation.

The Ministry of Commerce, (Director General Foreign Trade) to extend the Export Obligation (EO) period under EPCG scheme for a further period of 5 years from the cut off date (31.3.2007).

E. OTHER STIPULATIONS

If the company commits default towards repayment of principal instalments or payment of interest as per the sanctioned scheme or any combination, FIs / Banks reserves the right to charge interest on the defaulted amount at top of the band together with liquidated damages of 2% p.a. thereon till the date of clearance of default or FIs / Banks shall have the right to convert its entire overdues into fully paid up equity shares of JCTEL during the currency of the loans as per SEBI guidelines, or otherwise but with the permission of Honble BIFR, FIs / Banks also reserves the right to revoke the package of rehabilitation with the prior approval of BIFR and in such event of revocation, the decision of FIs / Banks shall be final and binding on the borrower and/or. guarantors. In case of FIs / Banks exercise the right of revocation, the financial rehabilitation sanctioned or granted to JCTEL shall be treated as withdrawn and the terms and the conditions of the original loan agreements or documents shall come into force as if no such financial rehabilitation were ever granted to JCTEL. Further, FIs / Banks shall have the right to adjust payment received under the present package of financial rehabilitation against outstanding dues in terms of the original loan agreements/documents.

5. The impact of the scheme approved by the Honble BIFR, on the accounts of the company for the year under review for which appropriate effect was required to be given are as follows:-

(a) As per the scheme, interest is to be provided @ 6% p.a. on loans from banks and FIs w.e.f. October 1, 2008.

The company from 1st October, 2008 has started accruing interest @ 6% per annum on Term Loans & Working Capital Term Loans outstanding.

(b) However, the Honble BIFR vide order dated 12th November, 2008, has stipulated that Fl(s)/banks would neither raise any claim for payment of interest w.e.f. 1st October, 2008 in respect of installments, as envisaged in the sanctioned scheme to be read along-with the cash flow statement, nor would they take coercive action in this regard, until issuance of further direction(s) by the Board. The installments of the balance principal outstanding has been released to Banks/Financial Institutions who have communicated their sanctions.

Starting from the quarter January to March 2009, the company has started paying, the balance principal outstanding of Term loans & Working Capital Term Loan after adjusting the amount converted to equity shares and upfront payment, on a deferral basis (over a period of 33 quarterly installments), except payment to Vijaya Bank as the said bank had not sent confirmation to the rehabilitation scheme approved by the Honble BIFR on 12th March, 2007 till the end of this financial year.

During the current year, the installments of the balance principal outstanding of Term Loan and WCTL of Allahabad Bank and UCO Bank have been released after their confirmation/sanction as per the Sanctioned Scheme.

(c) (i) An Asset Sale Committee has been constituted for the sale of land and building of the Mohali unit but before finalizing the sale, permission from the Honble BIFR will be taken. The sale proceeds will be kept in a no lien interest bearing account with the Scheduled Bank, and its utilization will be decided by the Honble BIFR.

(ii) Conversion of leasehold land to freehold land is pending. The shifting of Mohali Plant will be taken up after entering an agreement with the workers regarding settlement of their dues.

(iii) Trust and Retention Bank a/c required to be opened with Scheduled Bank, shall be opened upon sale of Mohali Plant.

(d) The working capital facilities from the banks (other than banks covered under OTS as per the sanctioned scheme) have been converted into working capital term loan as per the sanctioned scheme. Since the working capital loans of SBI & SBICI, who had earlier opted for OTS, have now been assigned to Asset Reconstruction Company (India) Ltd. (ARCIL), their loans have also been converted into WCTL.

(e) In view of the deemed sanction of the Income Tax Department, as per section 19(2) of SICA, no provision for Minimum Alternate Tax is required to be made nor is the remission or cessation of interest liability subject to tax under section 41(1) of The Income Tax Act, 1961 since reliefs/concessions provided in the sanctioned scheme under section 17(3) have an over riding effect on the provisions of the Income Tax Act, 1961.

(f) For continuing uninterrupted supplies/services, in addition to payment against current dues of unsecured creditors, some of the payments against the past dues have also been made, and the gross amount paid during the year does not exceed the overall limits prescribed under the sanctioned scheme.

(g) No interest has been provided on the unsecured loans as per the sanctioned scheme.

(h) Negotiation with the worker unions is in progress to crystallize their past dues. Crystallized dues of workers/staff will be settled out of the sale proceeds of the Mohali units as per the sanctioned scheme and hence no provision for the dues to workers/staff has been made in the current year.

(i) Out of total Debentures of Rs 500 lacs issued under Series I to Vijaya Bank, 15% of the aforesaid amount of debentures amounting to Rs 75 lacs has been converted into equity shares. The balance amount of Rs.425 lacs which was appearing as Debentures under the Schedule C Secured Loans, till the financial year ending 31st March, 2009 have been shown as Term Loan in the current year. The security created in favour of Debenture Trustees through Trust Deed is in the process of being released.

(j) Similarly, Debentures of Rs 3,000 Lacs issued under Series II & Series ///to IFCI which was appearing as Debentures under the Schedule C Secured Loans, till the financial year ended 31st March, 2009 have been shown as Term Loan in the current year. The security created in favour of Debenture Trustees through Trust Deed is in the process of being released.

(k) Indian Overseas Bank, Bank of Baroda, SBI and SBICI had not been issued equity equivalent to 15% of principal outstanding as on the cut-off date as per the BIFR sanctioned scheme in the FY 07-08, since they had opted for OTS. During the current year Equity shares have been issued to ARCIL equivalent to 15% of principal outstanding of SBI & SBICI as on the cut-off date as per the BIFR order, since SBI & SBICI have assigned their debt to ARCIL, who have conveyed their acceptance to the Scheme approved by the Honble BIFR.

(l) In view of the proposed introduction of GST, Extension of Sales Tax (CST & VAT) concession/exemption for a further period of 10 years which has expired in May, 2006 , is not likely to come. However, after changes in Sales Tax laws, the same has not been extended & approved by the Gujarat Govt accordingly VAT is being paid on goods sold locally and CST on goods sold in an interstate transaction. Further input tax credit is being claimed on VAT paid.

(m) The Scheme has granted exemption of octroi & electricity duty for a period of 10 years but the same has not been approved by the, Gujarat Government & it is being borne by the Company.

As per sanctioned scheme, the share capital of Rs. 7,502.26 lacs has been allotted to the promoters/FIs/ Banks in the financial year 2006-07. During the year 2009-10, the share capital of Rs.34.78 lacs has been allotted to ARCIL pursuant to BIFR order, since SBI & SBICI have assigned their debt to ARCIL. The revival of the company is dependant on sale of land and building at Mohali, shifting of plant and machinery and repayment of dues to various banks and financial* institutions. Assuming that this takes place as anticipated in the sanctioned revival scheme, the companys net worth is expected to turn positive in the 4th year of its implementation. On the assumption that the revival of the company will take place as anticipated the company has been treated as a going concern.

7. (a) As per the sanctioned scheme and assumption by the management that the sale of land & building at Mohali will fetch a value in excess of its book value, no provision for impairment of Mohali assets has been considered necessary by the management.

(b) It is estimated that inventory at Mohali unit which has to be transferred to the Vadodara unit as per the scheme aggregating to Rs. 1380.34 lacs contains a substantial loss on impairment which will be estimated and provided for only after these have been shifted to Vadodara Unit. The losses are understated to this extent.

8. The Company estimates the deferred tax (charge) / credit using the applicable rate of taxation based on the impact of timing differences between financial statements and estimated taxable income for the current period. Since there is no reasonable virtual certainty of realisation, deferred tax asset (Net) of Rs. 14,442.51 lacs (Previous year Rs. 14207.86 lacs) has not been recognized.

9. Employee Benefits:

(a) Defined Contribution Plans

The Company has recognized the contribution/liability in the Profit & Loss Account for the financial year 2009-10.

Notes:

(a) The estimates of future salary increases, considered in actuarial valuation, takes into account the inflation, seniority, promotion and other relevant factors.

(b) The company has a fund with the Life Insurance Corporation under the Employees Gratuity Scheme and the fund value as on 31st March 2010 was Rs.204.92 lacs (Previous Year Rs 99.14 lacs).

10. Balance confirmation

(a) Debtors and creditors balances and other receivables/payables are subject to confirmation and have been shown as per values appearing in the books of accounts and have been treated as good for recovery/ payment unless specifically provided for.

(b) Debits to a partys account include Rs. 4,184.61 lacs for the recovery of CST from various parties which have been incorporated on the basis of an understanding with the party for which credit notes are anticipated to be received by the management.

(c) Balance of Banks and FIs as appearing in the books of accounts are as mentioned in the sanctioned scheme approved by the Honble BIFR and these balances are after accounting for 15% equity share allotment made to them in the financial year 2007-08 and 2009-10, and installments paid upto financial year ending 31 st March, 2010. There is no change in the bank balances of those banks which have not yet sent the confirmation to the sanctioned scheme or those which have opted for OTS.

11. Related party disclosures:

Names of related parties and description of relationship

a) Related parties where significant influence exist : India International Airways Limited

b) Associates : JCT Limited

c) Key Management Personnel: Mr Arjun Thapar

d) Relative of Key Management Personnel : Mrs. Nayantara Thapar

e) Companies over which persons described in APJ Financial Services Private Limited (c) & (d) are able to exercise significant influence : Team Plus Securities Limited

12. The Company has taken certain commercial premises under cancellable operating lease arrangements. The lease period varies from two to three years with the option to extend the same with mutual consent. The total aggregate Lease Rentals recognized as expense in the profit & loss account under cancellable operating lease was Rs. 112.82 lacs (Previous Period : Rs. 116.51 lacs).

13. Information on Segment Results :

The company is engaged in the manufacture of Colour Picture Tubes which in the context of Accounting Standard 17 on Segment Reporting, issued by the Institute of Chartered Accountants of India is considered as the only business segment. There are no geographical segments.

14. Comparative Figures:

Figures for the previous year have been regrouped/reclassified wherever necessary to make them comparable with those of the current year.

15. Sales include sale of scraps and sale of goods purchased for trading.

 
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