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Notes to Accounts of Jindal Photo Ltd.

Mar 31, 2015

1. Impairment of assets

In accordance with the Accounting Standard (AS-28) on 'Impairment of Assets" impairment analysis of assets by evolution of the company's cash generating units, was carried out in the year 2008-09 and since recoverable amount was more than the carrying amount thereof, no impairment loss has been recognized in the current year as there is no indication of impairment which requires re-estimating the recoverable amount of the assets.

2. a) It is management's perception that since the company is exclusively engaged in the activity of manufacture of photographic paper and films which are governed by the same set of risks and returns the same are considered to constitute a single reportable segment in the context of Accounting Standard on "Segment Reporting" issued by the Institute of Chartered Accountants of India.

Deferred Tax Asset has been recognized only to the extent to which deferred tax liability is appearing in books and in view of uncertainty of the realization in future years, deferred tax asset of balance amount has not been created in books of account.

3. (i) The Administration of Union Territory of Dadra & Nager Haveli vide its dated 31st December, 1999 granted exemption for sales tax to the company. In view of legal opinion received from experts and as per AS-12 such benefit being in nature of capital receipt has been reduced from Gross Sales and credited to Capital Reserve.

(ii) Accounts of financial years 2005-06 to 2010-11 were prepared considering such benefit as revenue receipt and income tax was provided and paid at normal rate for respective year. The assessment of financial year 2005-06 to 2010-11 for which assessment proceedings u/s 153A is in progress, company fled revised income tax computations for such financial years claiming benefit of Rs. 11288.57 lacs as exempted income and tax liability was revised as per provisions of section 115JB of Income Tax Act, 1961 (MAT) at Rs. 2278.70 lacs. As the claim is for the years for which normal revised return could not be fled, the effect of such claim of benefit is not considered and necessary effective entries will be passed on finality of the assessment. Year wise detail is as under:

4. Effective 1st April, 2014, the company has revised its estimated useful life of fixed assets, wherever appropriate, on the basis of useful life specified in Schedule II of the Companies Act, 2013. The carrying amount as on 1st April, 2014 is depreciated over the revised remaining useful life. As a result of these changes, the depreciation charged for the period ended 31st March, 2015 is higher by Rs. 82,38,931 and the effect relating to the period prior to 1st April, 2014 is Rs. 32,53,132 which has been adjusted against opening balance of retained earnings.

5. Scheme of arrangement with Jindal Poly Films Limited: The Board of Directors of Jindal Photo Limited at their meeting held on 12th January 2015 approved the scheme of arrangement ('the scheme') between Jindal Photo Limited ("Demerged Company") and Jindal Poly Films Limited ("Resulting Company") for the demerger of the demerged undertaking (as defined in part (III) of the Scheme – Business of Manufacture, production, sale and distribution of photographic products of demerged company into the Resulting Company.

As per the scheme, the Demerged Undertaking of Jindal Photo Limited will stand transferred to the Resulting Company with effect from 1st April 2014, the Appointed Date. The scheme has already been approved by BSE Limited("BSE") and National Stock Exchange of India Limited ("NSE") vide letter dated 11.03.2015 & 12.03.2015 respectively. Now the scheme has fled with Honourable High Court of judicature at Mumbai for convening of meetings of shareholders' and creditors of the company.

Pending approval of the the Honourable High Court of judicature at Mumbai, accounting treatment as prescribed in clause No. 5 of Part IV of the Scheme has not been given effect to in the financial statement for the year ended 31st March 2015 and the core operations to be transferred to the Resulting Company i.e. Business of Manufacture, production, sale and distribution of photohraphic products were carried on in trust for the period from 1st April 2014 till 31st March 2015 by the Demerged Company.

6. The Hon'ble Supreme Court has issued an Order dated 24th September, 2014 (Order), cancelling the coal block allocated to the Joint Venture Company, Mandakini Coal Company Limited (MCCL). Subsequently, the Coal Mines (Special Provisions) Ordinance, 2014 (the Ordinance) has been promulgated by the Government of India whereby, inter-alia, it intends to take appropriate steps to deal with the compensation pursuant to the cancellation of the respective coal blocks and re-allocation of such cancelled blocks based on a process of fresh bidding as determined by it in respect of such re-allocation. MCCL was unable to win such / any coal block under the said process of bidding for reallocation of cancelled coal blocks and accordingly, as at 31st March 2015, MCCL did not have any Coal block.

As per the provisions of the ordinance, MCCL has fled a claim with Ministry of Coal for compensation of Rs. 243.99 crore on expenditure incurred by it till March 31, 2015 on procurement of land, other assets and incidental expenditure related to coal blocks. In terms of the said ordinance, such compensation as determined by the Union of India through the Ministry of Coal aggregated to Rs. 6.74 crores. MCCL, being aggrieved of the same and faced with a risk of reallocation of such coal block without adequate compensation, has fled a writ petition with the Hon'ble Delhi High Court against the Union of India - Ministry of Coal and Ministry of Law and Justice, in February, 2015, challenging the compensation mechanism as expropriator, unjust and unfair and the valuation principles for the compensation as being arbitrary as per the said Ordinance, and has prayed for the declaration of section 16 of the Ordinance as being arbitrary and in violation of Articles 14 & 19 of the Constitution of India, and to issue orders as to making affair, appropriate and reasonable assessment of the Compensation payable in this regard . The Hon'ble Delhi High Court has vide its order dated 15 February 2015, made the said auction process for reallocation of coal blocks subject to further orders of the Court.

The said petition and claims are pending for finalization / settlement. MCCL is of the view based on legal advice received in this respect, that it has a strong case in respect of its claim for compensation and as regards the petition, and that it will be able to realize all the costs incurred so far for the development of the coal block along with interest thereon.

In view thereof, the company has shown investment in shares and loans and advances given to MCCL at its original value and no diminution/provision has been provided in books of accounts.

7. Disclosures as required by Accounting Standard-18 "Related Party Disclosure" issued by the Institute of Chartered Accountants of India are as under:-

A) Relationship

a) Joint Venture Company

Mandakini Coal Company Limited

b) Controlling Companies/Individuals

Consolidated Photo & Finevest Limited Soyuz Trading Company Limited

c) subsidiaries

Jindal Imaging Limited

Jindal India Power tech Limited

Jindal Photo Imaging Limited

Jindal India Thermal Power Limited

Jindal Solar Power tech Limited

Hindustan Powered Limited

Cornet Ventures Limited

Edward Supply Private Limited

Xeta Properties Pvt. Limited(w.e.f. 23.05.2014)

Opus Co build Pvt. Limited(w.e.f. 23.05.2014)

Opus Prebuilt Pvt. Limited(w.e.f. 23.05.2014)

Mandakini Exploration & Mining Limited (w.e.f. 03.06.2014)

Consolidated Mining Limited (w.e.f. 02.02.2015)

d) Associates Company

Anchor Image and Films Singapore Pvt. Ltd. (w.e.f. 31.07.2014)

e) Key Management Personnel

Shri Shammi Gupta, Managing Director

Shri Krishnasamy Ramaswamy, Whole Time Director

Shri M.K. Rastogi, Chief Financial Officer

Shri Ashok Yadav, Company Secretary

8. Previous year's figures have been regrouped /re-arranged wherever considered necessary.

9. Figures have been rounded off to the nearest rupee.


Mar 31, 2014

1. Rights, Preferences and restrictions attached to Share

Equity Share

The Company has one class of equity shares having at value of Rs. 10 each. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in the proportion to their shareholding.

Preference Share

The Company has one class of zero % redeemable non- convertible preference share (RPS Series -I) having value of Rs. 10 each. RPS Series -I shall not carry out any dividend. RPS Series -I shall not carry out any voting right. RPS Series -I shall be redeemed at a premium of 10% with in a period of 10 years.

2. DEFERRED TAX LIABILITY (NET)

The Net Deferred Tax Liability recognized in the profit & Loss Account, as recommended under Accounting Standard (AS)-22 on "Deferred Taxation" issued by The Institute of Chartered Accountants of India is as under :-

* Includes addition in accumulated losses for the assessment years 2012-13 and 2013-14 by Rs. 2868.83 lacs due to additional claim fled in original/revised income tax return fled during the year for certain income claimed as exempted by the company. Effectively, deferred tax assets has been increased by Rs. 930.79 lacs.

Deferred Tax Asset has been recognized only to the extent to which deferred tax liability is appearing in books and in view of uncertainity of the realization in future years, deferred tax asset of balance amount has not been created in books of account.

* Working Capital limits from banks are secured by frst charge by way of hypothecation of stocks of raw material,semi fnished and fnished goods and consumable stores, spares and book debts and receivables both present and future ,ranking paripassu with working capital loans sanctioned by other participating banks.

*The company has not received intimation from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act,2006 and therefore ,disclosure under this act has not been given. The management does not envisage any material impact on the financials in this regard.

* During the year,Partly Paid Up Equity Shares converted into 16,04,00,000 fully paid up equity shares of Rs. 10 each on the order of Hon''ble High Court Allahabad order dated 18.02.2014. ** Out of above 20043000 shares pledged with lender of Mandakni Coal company Ltd. against loan taken by that Company. *** Diminution in value of investment has not been provided as the operations of the Joint Venture / Subsidiary has not commenced.

*Sundry Debtors include Rs. 46,06,143 (previous year Rs.22,75,137) under litigation, against which legal cases are pending in various Courts for recovery. The same are considered good and realisable in the opinion of the management.

3. CONTINGENT LIABILITIES AND COMMITMENTS

Contingent Liabilities

a) Outstanding Bank Guarantee 1,20,68,543 1,55,16,297

b) Foreign letters of credit outstanding 36,30,38,011 46,02,71,413

c) Sales Tax demands disputed in appeals 3,03,75,922 3,20,29,049

d) Corporate Guarantee given on behalf of 86,92,66,667 86,92,66,667 joint venture company Mandakini Coal Company Ltd.

e) Uncalled/unpaid Liability of Partly - 2,98,70,00,000

f) Income Tax demands disputed in appeals 15,68,49,848 -

3 In the opinion of the Board of Directors the current assets, loans and advances are expected to realise at least the amount at which they are stated, if realised in the ordinary course of business and provision for all known liabilities has been adequately made in the accounts.

*Includes lease rent. The company has taken certain premises on cancelable/non cancelable operating lease arrangements: (a) Major term of agreement are as under

4. Impairment of assets

In accordance with the Accounting Standard (AS-28) on "Impairment of Assets" impairment analysis of assets by evolution of the company''s cash generating units, was carried out in the year 2008-09 and since recoverable amount was more than the carrying amount thereof, no impairment loss has been recognized in the current year as there is no indication of impairment which requires re-estimating the recoverable amount of the assets.

5. a) It is management''s perception that since the company is exclusively engaged in the activity of manufacture of photographic paper and flms which are governed by the same set of risks and returns the same are considered to constitute a single reportable segment in the context of Accounting Standard on "Segment Reporting" issued by the Institute of Chartered Accountants of India.

6 The Company had set up three independent manufacturing units at Union Territory of Dadra & Nagar Havelli,which is a notifed backward area. The Union territory of Dadra & Nagar Havelli, in order to accelerate the Industrial development and increasing employment opportunities, issued in public interest, Notifcations dated 4.01.1984 and dated 31.12.1999,whereby units manufacturing and selling goods in that state were granted exemption from sales tax.

Accordingly, the Asstt. Commissioner of Sales tax, Dadra & Nagar Havelli issued certifcate of exemption from sales tax dated 8.03.2002 for PPD Unit in favour of the company, which is valid for a period of 15 years commencing from 14.04.2001 to 13.04.2016.

Till 31st March,2013, as per accounting policy followed by the company, the amount of sales was shown under the head "Revenue from operation" forming part of sales. During the year, in view of legal opinion taken from experts and as per AS-12 such benefit are in nature of capital receipt and is credited to capital reserve instead of operational income.

(i) Accordingly, during the year, amount of benefit under the above said scheme amounting to Rs. 23,40.74 lacs has been credited to capital reserve and not forming part of "Revenue from operations". Due to change in above accounting policy (as per AS-5), the sales and profit figures for the year are lower by the same and not comparable with corresponding figures to that extent.

(ii) Accounts of 31st March,2013, were prepared considering such benefit as revenue receipt and income tax provision was provided at normal rate. After taking legal opinion, company fled income tax return claiming such benefit of Rs. 3687.97 lacs as exempted income and tax liability was offered as per provisions of section 115JB of Income Tax Act, 1961 (MAT) at Rs. 190.08 lacs and claimed business loss of Rs. 2720.63 lacs. Due to claiming such benefit at the time of fling the income tax return for assessment year 2013-14, now on finalization of accounts of 31 st March,2014 necessary effect has been given by creating MAT credit entitlement by Rs. 190.08 lacs. Further, business loss of Rs. 2720.63 lacs has been considered for computation of deferred tax for the year.

(iii) Accounts of 31st March,2012, were prepared considering such benefit as revenue receipt and income tax was provided and paid at normal rate. After taking legal opinion, company fled revised income tax return claiming such benefit of Rs. 2687.35 lacs as exempted income and tax liability was revised as per provisions of section 115JB of Income Tax Act, 1961 (MAT) at Rs. 498.44 lacs and claimed business loss of Rs. 148.21 lacs. Due to claiming such benefit at the time of fling the revised income tax return for assessment year 2012-13, now on finalizations of accounts of 31 st March,2014 necessary effect has been given by creating MAT credit entitlement by Rs. 498.44 lacs. Further, business loss of Rs. 148.21 lacs has been considered for computation of deferred tax for the year.

(iv) Accounts of financial years 2005-06 to 2010-11 were prepared considering such benefit as revenue receipt and income tax was provided and paid at normal rate for respective year. The assessment of financial year 2005-06 to 2010-11 for which assessment proceedings u/s 153A is in progress, company fled revised income tax computations for such financial years claiming benefit of Rs. 11288.57 lacs as exempted income and tax liability was revised as per provisions of section 115JB of Income Tax Act, 1961 (MAT) at Rs. 2278.70 lacs. As the claim is for the years for which normal revised return could not be fled, the effect of such claim of benefit is not considered and necessary effective entries will be passed on finality of the assessment. Yearwise detail is as under:

7 Disclosures as required by Accounting Standard-18 "Related Party Disclosure" issued by the Institute of Chartered Accountants of India are as under:-

A) Relationship

a)Joint Venture Company

Mandakini Coal Company Limited

b) Controlling Companies/Individuals

Consolidated Photo & Finvest Limited Souyuz Trading Company Limited

c)Subsidiaries

Jindal Imaging Limited

Jindal India Powertech Limited

Jindal Photo Imaging Limited (Erstwhile Jindal Photo Investments & Finance Limited)

Jindal India Thermal Power Limited

Jindal Solar Powertech Limited

Hindustan Powergen Limited

Cornet Ventures Limited

Edward Supply Private Limited

d)Key Management Personnel

Shri Shammi Gupta, Managing Director

Shri Krishnasamy Ramaswamy, Whole Time Director

Note: Loans and advances shown above to subsidiaries are in the nature of advances. * The amount has been considered as doubtful and necessary provision was also been made in earlier years. D Investments made in equity share of the company by a loanee are Nil ( Previous Year Nil)

8 Previous year''s figures have been regrouped /re-arranged wherever considered necessary.

9 Figures have been rounded off to the nearest rupee.


Mar 31, 2013

1. CONTINGENT LIABILITIES AND COMMITMENTS

Contingent Liabilities

a) Outstanding Bank Guarantee 15,516,297 11,246,498

b) Foreign letters of credit outstanding 460,271,413 220,999,774

c) Sales Tax demands disputed in appeals 32,029,049 21,827,907

d) Corporate Guarantee given on behalf of joint venture 869,266,667 202,600,000 company e) Uncalled/unpaid Liability of Partly paid shares 2,987,000,000 2,987,000,000

2. In the opinion of the Board of Directors the current assets, loans and advances are expected to realise at least the amount at which they are stated, if realised in the ordinary course of business and provision for all known liabilities has been adequately made in the accounts.

3. Impairment of assets

In accordance with the Accounting Standard (AS-28) on ‘Impairment of Assets" impairment analysis of assets by evolution of the company''s cash generating units, was carried out in the year 2008-09 and since recoverable amount was more than the carrying amount thereof, no impairment loss has been recognized in the current year as there is no indication of impairment which requires re-estimating the recoverable amount of the assets.

4. a) It is management''s perception that since the company is exclusively engaged in the activity of manufacture of photographic paper and films which are governed by the same set of risks and returns the same are considered to constitute a single reportable segment in the context of Accounting Standard on "Segment Reporting" issued by the Institute of Chartered Accountants of India.

4. b) The company operates only in Indian market as such there is no separate geographics section.

5. DEMERGER OF INVESTMENT DIVISION OF THE COMPANY

The Board of Directors in their meeting held on 07th June 2012 had approved a scheme of Demerger of Investment Division of the company into Jindal Photo Investments & Finance Limited.

Due to various business grounds, the Board of Directors in their meeting held on February 25, 2013 decided to withdraw the said scheme of demerger. The company moved an application of its proposal to withdraw the scheme of demerger to Bombay High Court which was allowed by the Hon'' ble high Court vide its order dated 26th March 2013.

6 The Company had set up three independent manufacturing units at Union Territory of Dadra & Nagar Havelli, which is a notified backward area. The Union territory of Dadra & Nagar Havelli, in order to accelerate the Industrial development and increasing employment opportunities, issued in public interest, Notifications dated 4.01.1984 and dated 31.12.1999,whereby units manufacturing and selling goods in that state were granted exemption from sales tax.

Accordingly, the Asstt. Commissioner of Sales tax, Dadra & Nagar Havelli issued certificate of exemption from sales tax dated 8.03.2002 for PPD Unit in favour of the company, which is valid for a period of 15 years commencing from 14.04.2001 to 13.04.2016.

In accordance with the aforesaid Notifications and Exemption certificate, during the relevant year, the Company is entitled for the benefit of Rs. 36,87,96,698/-on account of sales tax. In case there would have not been exemption the same is required to be charged and deposit with the sales tax authorities.

7 Disclosures as required by Accounting Standard-18 "Related Party Disclosure" issued by the Institute of Chartered Accountants of India are as under:-

A) Relationship

a) Joint Venture Company

Mandakini Coal Co. Limited

b) Controlling Companies/Individuals

Consolidated Photo & Finvest Limited Soyuz Trading Company Limited

c) Subsidiaries

Consolidated Imaging Limited (ceased from 01.08.2011 refer note N0 38 C)

Jindal Imaging Limited

Jindal India Powertech Limited

Jindal Photo Investments & Finance Limited

Jindal India Thermal Power Limited

Jindal India Power Ventures Limited (ceased from 01.08.2011 refer note 38 C)

Jindal Solar Powertech Limited (w.e.f. 01.08.2011 refer note no 38 C) Hindustan Powergen Limited

Cornet Ventures Limited (Formerly known as Jindal India Finvest & Holdings Limited) Edward Supply Private Limited (w.e.f. 04.06.2012)

d) Key Management Personnel

Shri Shammi Gupta, Managing Director

Shri Krishnasamy Ramaswamy, Whole Time Director

8. C) A scheme of amalgamation of Consolidated Buildtech Private limited (CBPL), Consolidated Imaging Ltd.(CIL), Hindustan Thermal Power Generation Ltd. (HTPGL), Jindal Poly Finance Ltd.(JPFL), Jindal India Power Ventures Ltd.(JIPVL), Jindal Solar Rajsthan Ltd. (JSRL),and S J Green Finvest Private Ltd.(SGFPL) with Hindustan Powergen Ltd. (HPL) was approved by the Hon''ble High Court of Delhi, Calcutta & Allahabad, whereby the aforesaid companies have been amalgamated with HPL with effect from the appointed date i.e. 01.08.2011. As a result of the said merger, CIL and JIPVL have ceased to be subsidiaries and Jindal Solar Powertech Ltd. (JSPTL) has become a subsidiary of the company. Allotment of shares by HPL to the shareholders of the amalgating companies has been made on 30.04.2013. On allotment the company has to receive 160000 equity shares of HPL.

9 Previous year''s figures have been regrouped /re-arranged wherever considered necessary.

10 Figures have been rounded off to the nearest rupee.


Mar 31, 2011

1. Contingent Liabilites : As at As at 31.03.2011 31.03.2010 (Rs.) (Rs.)

a) Outstanding Bank Guarantee 8,694,719 8,714,729

b) Foreign letters of credit outstanding 267,820,450 288,553,275

c) Sales Tax demands disputed in appeals 35,498,529 56,228,407

d) Uncalled/Unpaid liability of Partly Paid shares 2,673,000,000 1,248,000,000

e) Corporate Guarantee given on behalf of joint venture company Mandakini Coal 202,600,000 202,600,000 Company Ltd.

2. Amounts to be credited to Investor Education and Protection Fund- NIL (Previous Year NIL)

3. The company has not received intimation from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act,2006 and therefore ,disclosure under this act has not been given. The managment does not envisage any material impact on the fi nanancials in this regard.

4. Balances of Sundry debtors,Sundry creditors and advances from customers are subject to confi rmation and reconciliation. Differences if any shall be accounted for on such reconciliation.

5. In the opinion of the Board of Directors subject to note 6 above, the current assets, loans and advances are expected to realise atleast the amount at which they are stated, if realised in the ordinary course of business and provision for all known liabilities has been adequately made in the accounts.

6. Sundry Debtors include Rs.22,83,367 (previous year Rs.14,45,915) under litigation, against which legal cases are pending in various Courts for recovery. The same are considered good and realisable in the opinion of the management.

7. Impairment of assets

In accordance with the Accounting Standard (AS-28) on 'Impairment of Assets" impairment analysis of assets by evalution of the company's cash generating units, was carried out in the year 2008-09 and since recoverable amount was more than the carrying amount thereof, no impairment loss has been recognized in the current year as there is no indication of impairment which requires re-estimating the recoverable amount of the assets.

8. Working Capital limits from banks are secured by fi rst charge by way of hypothecation of stocks of raw material, semi fi nished and fi nished goods and consumable stores, spares and book debts and receivables both present and future, ranking paripassu with working capital loans sanctioned by other participating banks.

9. Other Liabilities includes Rs.30000 (previous year Rs.29950) due to the company secretary of the company.

10. a) It is management's perception that since the company is exclusively engaged in the activity of manufacture of photographic paper and fi lms which are governed by the same set of risks and returns the same are considered to constitue a single reportable segment in the context of Accounting Standard on "Segment Reporting" issued by the Institute of Chartered Accountants of India.

b) The company operates only in Indian market as such there is no separate geographics section.

11. Expenses under the head commission, discount, advertisement and business promotion are shown net of subsidy received/ receivable.

c) Controlling Companies/Individuals

Consolidated Photo & Finvest Limited Consolidated Finvest & Holdings Limited Soyuz Trading Co. Limited

d) Subsidiaries

Consolidated Imaging Limited Jindal India Finvest & Holdings Limited Jindal Minerais & Metais (Mozambique)Limitada Jindal Imaging Limited

e) Key Management Personnel

Shri Shammi Gupta, Managing Director

Shri Krishnasamy Ramaswamy, Whole Time Director

Shri Rajeev Aggarwal, Whole Time Director*

(*Shri Rajeev Aggarwal ceased to be director of the company w.e.f. 15.7.2011)

12. C) A scheme of amalgamation of Jindal Packaging Films Ltd., Jindal India Hydro Ltd., Jindal Realmart Pvt. Ltd, Indian Software Consultancy ltd. and India Fincap Ltd. with Hindustan Powergen ltd. (HPL) was approved by the Honourable Delhi High Court, whereby the aforesaid companies have been amalgamated with HPL with effect from the appointed date i.e. 01.04.2009 and shall become effective from the effective date which shall be the last date on which all the conditions referred in High Court order are fulfi lled. Upon amalgamation, HPL was to issue share to the shareholders of the erestwhile amalgamating companies in the ratio specifi ed in the High court order. Allotment of shares by HPL to the shareholders of the amalgamating companies has been made on 27.04.2010. On allotment the company has received 35000 equity shares of HPL.

13. The Ministry of Corporate Affairs, Government of India vide its General Notifi cation No. S.O. 301(E) dated 8th February, 2011 issued under section 211(3) of The Companies Act 1956 has excluded certain classes of Companies from disclosing certain information in their Profit and loss account. The Company being a manufacturing and trading company is entitle to the exemption. Accordingly, disclosures mandated by paragraphs 3(i)(a), 3(ii)(a) and 3(ii)(b) of Part II, Sechedule VI to the Companies Act,1956 have not been provided.

14. Previous year's figures have been regrouped /re-arranged /recast wherever considered necessary.

15. Figures have been rounded off to the nearest rupee.

16. Schedules 'A' to 'T' are annexed to and form part of Statement of Accounts.


Mar 31, 2010

1. Contingent Liabilites : As at As at

31.03.2010 31.03.2009

(Rs.) (Rs.)

a) Outstanding Bank Guarantee 8,714,729 23,240,676

b) Foreign letters of credit outstanding 288,553,275 713,861,891

c) Sales Tax demands disputed in appeals 56,228,407 35,397,819

d) Uncalled liability of Partly Paid shares 1,248,000,000 1,116,000,000

e) Corporate Guarantee given on behalf of joint venture company 202,600,000 202,600,000

Mandakini Coal Company Ltd.

2. Amounts to be credited to Investor Education and Protection Fund- NIL (Previous Year NIL)

3. The company has not received intimation from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act,2006 and therefore ,disclosure under this act has not been given. The managment does not envisage any material impact on the finanancials in this regard.

4. Balances of Sundry debtors,Sundry creditors and advances from customers are subject to confirmation and reconciliation. Differences if any shall be accounted for on such reconciliation.

5. In the opinion of the Board of Directors subject to note 5 above, the current assets, loans and advances are expected to realise atleast the amount at which they are stated, if realised in the ordinary course of business and provision for all known liabilities has been adequately made in the accounts.

6. Sundry Debtors include Rs.14,45,915 (previous year Rs.33,78,881) under litigation, against which legal cases are pending in various Courts for recovery. The same are considered good and realisable in the opinion of the management.

7. Impairment of assets

In accordance with the Accounting Standard (AS-28) on Impairment of Assets" impairment analysis of assets by evalution of the companys cash generating units, was carried out in the year 2008-09 and since recoverable amount was more than the carrying amount thereof, no impairment loss has been recognized in the current year as there is no indication of impairment which requires re-estimating the recoverable amount of the assets.

8. The Company uses foreign hedges to manage its risk associated with foreign currency fluctuations relating to certain firm commitments. The Company does not use hedges for speculative purposes.

9. a) Working Capital limits from banks are secured by first charge by way of hypothecation of stocks of raw material semi finished and finished goods and consumable stores, spares and book debts and receivables both present and future, ranking pari passu with working capital loans sanctioned by other participating banks.

Note : The above figure does not include contribution to Gratuity Fund as separate figures are not available for the managerial personnel.

b) Computation of net profit in accordance with section 349 of the Companies Act,1956 has not been enumerated,as no commission is payable and remuneration has been paid as per the provisions of schedule XIII of the CompaniesAct, 1956.

c) The company holds an insurance policy on the life of the managing director for a sum of Rs-NIL

d) Sh. Rajeev Aggarwal,who was been appointed as whole time director wef 01.09.2009 has been paid remuneration wef 01.09.2009.

10. Other Liabilities includes Rs. 29950 (previous year Rs. 25,000 ) due to the company secretary of the company.

11. It is managements perception that since the company is exclusively engaged in the activity of manufacture of photographic paper and films which are governed by the same set of risks and returns the same are considered to constitute a single reportable segment in the context of Accounting Standard on "Segment Reporting" issued by the Institute of Chartered Accountants of India.

d) Includes Rs. 3,21,898/- paid in excess in previous year.

Gratuity Liability for the year 2009-10 has been considered as per LIC Gratuity report where as in previous year the same were considered on the basis of Independent Actuarial valuer.

The estimates of rate of future salary increase takes account of infl ation,seniority,promotion and other relevant factors on long term basis.

The discount rate is generally based upon the market yields available on Government bonds at the accounting date with a term that matches that of liability. The above information is certified by the actuary.

12. Disclosures as required by Accounting Standard-18 "Related Party Disclosure" issued by the Institute of Chartered Accountants of India are as under:-

A) Relationship

a) Associate Companies

Jindal Buildmart Limited Jindal India Powertech Limited

b) Joint Venture Company

Mandakini Coal Company Limited

c) Controlling Companies/Individuals

Consolidated Photo & Finvest Ltd.

Consolidated Finvest & Holdings Limited Soyuz Trading Company Ltd.

d) Subsidiaries

Consolidated Imaging Ltd.

Jindal India Finvest & Holdings Limited (wef 30.01.2010)

India Fincap Ltd. (Up to 29.01.2010)

Jindal Imaging Ltd.

Jindal India Power Venturrs Ltd. (Up to 25.05.2009)

Note : Related party relationship is as identified by the company and relied upon by the auditors 22. C) a) Effective 24.05.2009 Jindal India Powerventure Limited ceased to be a subsidiary of the company.

b) Effective 30.01.2010 Jindal India Finvest & Holdings Limited became a subsidiary of the company.

c) As per scheme of Amalgamation of India Fincap Limited with Hindustan Powergen Limited as approved by Honble High Court of Delhi effective from dt.31.03.2010, 35000 equity shares of HPL has to be received by Company in lieu of equity shares of IFL held by the Company. The equity shares of HPL has been alloted on dt. 27.04.2010.

13. Expenses under the head commission, discount, advertisement and business promotion are shown net of subsidy received / receivable.

14. Previous years figures have been regrouped /re-arranged wherever considered necessary.

15. Figures have been rounded off to the nearest rupee.

16. Schedules A to T are annexed to and form part of Statement of Accounts.

 
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