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Notes to Accounts of Jindal Poly Films Ltd.

Mar 31, 2016

b Pursuant to the scheme of Arrangement between Jindal Photo Limited (Demerged Company) and Jindal Poly Films Limited (Resulting Company) and their respective shareholders and creditors, 17,38,700 Equity shares of Rs 10/- each has been issued to the shareholders of Jindal Photo Limited (Refer Note 30).

c Ordinary Shares allotted as fully paid pursuant to contract(s) without payment being received in cash during the period of five years.

17,38,700 Equity shares of Rs 10/- each, issued pursuant to the scheme of Arrangement (Refer Note 30 (a))

Terms/ rights attached to Equity shares

Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. There is no restriction on distribution of dividend, however same is subject to the approval of the shareholders in the Annual General Meeting of the Company.

1 The Board of Directors, in its meeting held on 30th May 2016 has recommended dividend of Rs 1 per equity share for the financial year ended 31st March 2016 and sale is subject to approval of shareholders at the ensuing Annual General Meeting. The Total dividend appropriation for the year ended 31st March 2016 amounted to Rs 5,27,00,296 including corporate dividend tax of Rs 89,13,883.

Securities :

(i) and (ii) Secured by First Pari passu Charge over immovable property including land and buildings and movable fixed assets

of the Company, situated at village Mundegaon at village Mukane , Igatpuri, District Nasik in the state of Maharashtra “ Nasik Plant”.

(ii) Further Foreign currency term loans from AKA Ausfuhrkredit Gesellschaft MBH, Germany and ING Bank (a Branch of ING-DiBa AG) aggregating Rs 14073.86 Lacs are guaranteed by Euler Hermes Aktiengesellschaft, Germany.

Terms of Repayments of Non-Current portion of Borrowings :

2.. Merger of Manufacturing Division of Jindal Photo Limited

The Hon''ble High Court of Judicature at Allahabad and Bombay vide their Order dated 12th October, 2015 and 26th February, 2016 respectively sanctioned the scheme of arrangement (''the scheme'') between Jindal Photo Limited (“Demerged Company”) and Jindal Poly Films Limited (“Resulting Company”) and their respective shareholders and creditors, pursuant to the provisions of section 391 to 394 and other provisions of the Companies Act, 1956 and/or Companies Act, 2013. The scheme became effective upon filing of certified copies of the Orders of the Hon''ble High Court of Judicature at Bombay on 31st March, 2016.

The scheme is effective from Appointed Date i.e. 1st April, 2014 inter alia provides 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. Accordingly financial statements of the demerged entity has been incorporated for the year ended 31st March 2016 along with corresponding previous year ended 31st March 2015.

(a) Pursuant to the scheme of Arrangement between Jindal Photo Limited (Demerged Company) and Jindal Poly Films Limited (Resulting Company) and their respective shareholders and creditors, as a Consideration, Jindal Poly Films Limited have allotted 17,38,700 (seventeen lac thirty eight thousand seven hundred) Equity shares of Rs. 10 each fully paid up in the capital of the company on 30th May,2016 in the ratio of 10 fully Paid-up equity shares of Rs. 10 each of the Company for every 59 Equity shares of Jindal Photo Limited held by shareholders of Jindal Photo Limited on record date i.e. 13th May, 2016. Accordingly these shares are treated as outstanding as on reporting date and are included for the calculation of basic earnings per share for the year ended 31st March 2016 along with corresponding previous year ended 31st March 2015.

(b) The accounting of this Arrangement was done as per the scheme and the same has been given effect to in the financial statements as under:

i. The Resulting Company has recorded all assets and liabilities of the Demerged Undertaking vested in it pursuance to this scheme, at the respective book values thereof, as appearing in the books of account of the Demerged Company immediately before the appointed date.

ii. The Resulting Company has credited the aggregate face value of the New Equity shares of the Company issued by it to the members of the Demerged Company pursuant to this scheme to the share capital in books of accounts.

iii. The difference of the aggregate of face value equity shares allotted by the Company to the shareholders of the Demerged Undertaking, and the amount representing surplus of book value of assets over liabilities of the Demerged Undertaking has been recorded by the Resulting Company as Capital Reserve.

iv. Figures of demerged undertakings have been regrouped and/or rearranged wherever required to align with disclosure parameters of the Resulting Company.

‘Figures have been regrouped and/or rearranged wherever required to align with grouping of the Resulting Company.

31.7 Related Party Disclosures as per Accounting Standard - 18 (Related Party Disclosures), to the extent Identified by the Company List of Related Parties

(a) Subsidiary Companies

1 Jindal Films India Ltd (Previously Known as Jindal Metal & Mining Limited )

2 Global Nonwovens Limited

3 JPF Netherland B.V.

4 JPF Dutch B.V.

5 JPF UsA Holding LLC

6 Jindal Films America LLC

7 Films Macedon LLC

8 Jindal Films Europe Virton LLC

9 Jindal Films Europe Brindsi srl

10 Jindal Films Europe Kerkrade B.V

11 Jindal Films Europe s.a.r.l

12 Jindal Films singapore Pte.Ltd

13 Jindal Films (shanghai) Co. Ltd.

14 Jindal Films Europre Virton sPRL

15 Jindal Imaging Ltd (Pursuant to scheme of Arrangement)

16 Jindal Photo Imaging Ltd (Pursuant to scheme of Arrangement)

17 Jindal Films Europe services s.a.r.l. (incorporated as at 29th March 2016)

Note - M/s Films shawnee LLC and M/s Films LaGrange LLC Merged with JPF UsA Holding LLC.

(b) Associates

1 Rexor sAs

(Rexor Holding sAs merged with its wholly owned subsidiary Rexor sAs)

2 Hindustan Powergen Limited

(c) Key Managerial Personnel

1 sh. sanjay Mittal

2 Ms. sumita Dhingra (till 14.10.2015)

3 sh. s D Gosavi

4 sh. Manoj Gupta (Chief Finance Officer) (w.e.f. 28.05.2015)

5 sh. sanjeev Kumar (Company secretary)

(d) Enterprise owned by Major Shareholders of reporting Enterprise

1 Jindal Photo Investment Limited

2 soyuz Trading Company Limited

3 Rishi Trading Company Limited

4 Consolidated Finvest & Holdings Ltd.

5 Jindal Poly Investment & Finance Company Limited

6 Jindal India Limited

7 Anchor Image and Films Private Ltd

8 Anchor Image and Films Pte Limited singapore

(e). Other Enterprises

1 Jindal India Powertech Limited

2 Jindal India Thermal Power Limited

3 Jumbo Finance Limited

4 Jupax Barter Pvt. Ltd.

5 Jindal Photo Limited (Residual Investing Business)

6 Consolidated Photo & Finvest Ltd

‘includes Preference shares purchased aggregating Rs 39,29,00,000 from Jindal Photo Limited (Residual Investing Business)

Note : Pursuant to the scheme of Arrangement between Jindal Photo Limited (Demerged Company) and Jindal Poly Films Limited (Resulting Company), as approved by Hon''ble High Court of Judicature Mumbai vide order dated 26th February 2016, the Company has given impact in its books of accounts. Accordingly general inter unit balances arose earlier to approval of the scheme between Demerged Undertaking - M/s Jindal Photo Limited (Manufacturing Division) and Residual Undertaking - M/s Jindal Photo Limited (Investing Division) aggregating Rs 9,08,29,456 (Previous Year Rs 7,26,51,606) has been disclosed in short Term Loans and Advances (Refer Note 17.1). Being merely an accounting treatment for giving effect of the scheme, the above transaction and balance thereon is not disclosed in above related party disclosures.

3. Disclosure under Regulation 34(3) of “Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015”

Loans and advances outstanding at the year end and maximum amount outstanding during the year, as required to be disclosed under schedule V and Regulation 34(3) of “securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015” are as follows: ‘Comprehensive disclosure of investments as at 31st March 2016 has been made in Note 10 to the Financial statements, hence closing balance of other investments (Equity shares/Preference shares) having no movement during the year were not again disclosed in above statement.

‘‘balance including interest

Note: Pursuant to the scheme of Arrangement between Jindal Photo Limited (Demerged Company) and Jindal Poly Films Limited (Resulting Company), as approved by Hon''ble High Court of Judicature Mumbai vide order dated 26th February 2016, the Company has given impact in its books of accounts. Accordingly general inter unit balances arose earlier to approval of the scheme between Demerged Undertaking - M/s Jindal Photo Limited (Manufacturing Division) and Residual Undertaking - M/s Jindal Photo Limited (Investing Division) aggregating Rs 9,08,29,456 (Previous Year Rs 7,26,51,606) has been disclosed in short Term Loans and Advances (Refer Note 17.1). Being merely an accounting treatment for giving effect of the scheme, the above transaction and balance thereon is not disclosed in above related party disclosures.

4. Segment Reporting

Pursuant to the scheme of arrangement for merger of manufacturing business of Jindal Photo Limited having different photographic products, the management has classified the business in two reportable segment, as defined in Accounting standard - 17 (segment Reporting) as follows :

- Plastic Films Business

- Photographic Division

The Company has common assets for producing goods for domestic market and overseas market.

5. Provision for Post-sales Client support and Warranties:

Provisions for post-sales client support and warranties on certain products and services relating to photographic business of the Company are made towards expected cost of meeting such obligations of rectification/replacement, based on the expected future cash outflows and computed on total sales made during the year, based on past experience. Provision for post-sales client support are expected to be utilized over a period of one year.

6. (a) The Administration of Union Territory of Dadra & Nager Haveli vide its Notification dated 31st December, 1999 granted exemption for sales tax to the Demerged Entity M/s Jindal Photo Limited (now being merged with the Company M/s Jindal Poly Films Limited) and in view of legal opinion received from experts and as per Ads-12 such benefit being in nature of capital receipt has been reduced from Gross sales and credited to Capital Reserve.

(b) Further financial statements for the financial years 2005-06 to 2010-11 of Demerged Entity M/s Jindal Photo Limited (now being merged with the Company M/s Jindal Poly Films Limited) 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, entity has filed revised income tax computations for such financial years claiming benefit of Rs. 1,12,88,56,658 as exempted income and tax liability was revised as per provisions of section 115JB of Income Tax Act, 1961 (MAT) at Rs. 22,78,69,632. As the claim is for the years for which normal revised return could not be filed, 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:

7. (a) A sum of Rs.13,92,18,077 (previous year Rs.13,11,88,659) being the difference between domestic and imported raw material prices prevailing at the year ended on 31st March 2016 on account of advance licenses excess utilized for which exports are yet to be made, has been adjusted in the cost of raw material.

(b) Under the Package scheme of Incentive 2001/2007 approved by the Government of Maharashtra, the Company is entitled to industrial promotion subsidy to the extent of 100% of the fixed capital investment or to the extent of taxes paid to the state Government within a period of 7 years, whichever is lower. During the year, subsidy receivable under the above said scheme amounting to Rs 52,14,31,163 (previous year Rs. 51,57,72,707) has been added to Capital Reserve .

(c) The Export obligation undertaken by the company for import of capital equipments under EPCG scheme of the Central Government at the concessional rate of custom duty are in the opinion of the management expected to be fulfilled within their respective due dates/extended due date.

8. During the year, the Company had invested Rs. 39,29,00,000 in the Zero Percent redeemable preference share capital and Rs 249,00,00,000 in Zero Percent Optionally Convertible Preference shares M/s of Jindal India Powertech Limited (JIPL), a group company. JIPL is the holding Company of Jindal India Thermal Power Limited (the borrower).

9. (a) Certain old balances of sundry debtors and sundry creditors are subject to reconciliation and confirmation.

(b) sundry Debtors include Rs.53,23,605 (previous year Rs. 46,06,143) under litigation, AGAINST which legal cases are pending in various Courts for recovery. The same are considered good and realizable in the opinion of the management.

(c) In the opinion of the Board and to the best of their knowledge and belief, the realizable value of current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance sheet.

10. (a) Advance receivable in cash or in kind includes Rs. 28,254,171 (Previous Year Rs. 28,254,171 ) being the amount of custom duty deposited AGAINST import of capital goods assessed under provisional assessments in earlier year.

(b) Non - Current Investment includes 6 shares of Jindal Films India Ltd (Previously known as Jindal Metal & Mining Ltd) of which the Company is beneficial owner are held by certain individuals in fiduciary capacity.

(c) Pursuant to the scheme of Arrangement (Refer Note 30), investment held by Demerged Undertaking (M/s Jindal Photo Limited) in equity shares of M/s Jindal Imaging Limited and M/s Jindal Photo Imaging Limited has been transferred to Resulting Company (M/s Jindal Poly Films Limited), accordingly these equity shares has been considered as Non-Current Investments of the Resulting Company, however issuance of these shares in the name of M/s Jindal Poly Films Limited is under process.

(d) stores & spares consumed and salaries & wages incurred during the year for repair and maintenance of plant & machinery and sheds & building, have been charged to the former accounts wherever separation is not ascertainable.

11. (a) Discontinued Operation

Company has discontinued the operation of Partially Oriented Yarn (POY) facility at Gulaothi, Uttar Pradesh and Pet film facility at Khanvel unit as it has been terminated through abandonment in earlier years as per Accounting standard - 24 (Discontinuing Operations) referred to in section 133 of the Companies Act 2013.

Following is extracts of financial information included in loss from discontinued operations for the Gulaothi and Khanvel unit:-

(b) since FY 2006-07, the company was in the process of disposal of its unused plant & machineries and store items at Gulaothi Unit (Discontinued Operation). During the year, a part of such unused plant and machineries was reported to have been removed inappropriately. The management is taking due actions for recovery and do not consider any impairment/ provision for loss, if any, on this account as the credit balance of parties and realizable value of remaining assets is likely to exceed the book value of assets.

(c) As per Accounting standard -28 “Impairment of Assets” referred to in section 133 of the Companies Act 2013, no further impairment loss has been considered by the management in assets of Gulaothi & Khanvel unit.

12. Exceptional items represents Loss of Rs. 1,58,31,145 (previous year Rs 2,98,35,055) being exchange differences on translation/settlement of long term foreign currency loans for acquiring fixed assets.

13. Information related to Micro Enterprises and small Enterprises, as defined in the Micro, small and Medium Enterprises Development Act, 2006 (MsME Development Act), are given below. The information given below have been determined to the extent such enterprises have been identified on the basis of information available with the Company:

14. During the year, the erstwhile associate M/s Rexor Holding sAs has been merged with its wholly owned subsidiary M/s Rexor sAs, with effect from 1st April 2015, sanctioned as per order dated 21st October 2015 by an Foreign Authority (Greffe du Tribunal de Commerce de Vienne) and accordingly post-merger the surviving entity M/s Rexor sAs has become the associate of M/s Jindal Poly Films Limited. Pursuant to the scheme of merger, shares of M/s Rexor Holding sAs have been cancelled and in consideration proportionate shares as per the determined ratio, has been allotted in the surviving entity M/s Rexor sAs comprising 11163 Equity shares at Face Value of Euro 3506 allotted to M/s Jindal Poly Films Limited.

15. The Company has pledged 4,88,76,000 equity shares of Rs 10/- each of M/s Global Nonwoven Limited a subsidiary company and mortgaged 26.54 acres land of the Company situated at Nasik Maharashtra (Land being Leased out to Global

(i) Rs 716.79 Lacs (Previous year Rs. 2013.08 Lacs) - Repayable in one half yearly installment (Previous Year 3 equal half yearly installments), carrying fixed interest rate of 3.77% p.a. (Previous Year 3.77 % p.a.).

Rs 8124.73 Lacs (Previous Year Rs. 4375.00 Lacs) - Repayable in 5-6 Fixed half yearly equal installments (Previous Year 7-8 half yearly equal installments), carrying interest rate of (Libor 3.18%) p.a. (Previous Year (Libor 3.18%) p.a.).

Rs 8605.65 Lacs (Previous Year Nil)- Repayable in 18 Fixed half yearly equal installments (Previous Year Nil), carrying interest rate of (Euribor 0.85%) p.a. (Previous Year Nil).

Rs 11900.41 Lacs (Previous Year Rs 11213.94 Lacs) - Repayable in 20 Fixed quarterly equal installments (Previous Year 20 Fixed quarterly equal installments), carrying interest rate of (Libor 4.00%) p.a. (previous year (Libor 4.50%)).

(ii) Rs 5962.50 Lacs (Previous Year Rs. 7987.50 Lacs) - Repayable in 9 quarterly installments (Previous Year 13 quarterly

installments), carrying interest based on Base Rate (presently 10.15%) (previous year 10.60%).

Rs 1700.00 Lacs - Repayable in 21 quarterly installments (Previous Year Nil), carrying interest rate of 10.60% p.a. (Previous Year Nil).

Securities

(i) Secured by hypothecation of all stocks of raw materials, semi finished goods, finished goods, goods in transit, stores and spares and book debts of the plastic films business of the company .These are further secured by way of second pari-pasu charge on immovable & movable properties of the plastic film business of the company situated at Gulaothi (U.P.) and Nasik (Maharashtra).

(ii) 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 of the photographic division of the company, ranking paripassu with working capital loans sanctioned by other participating banks for photographic division of the Company.

16. Includes the depreciation related to discontinued operations, amounting Rs.75,98,197 (previous year Rs. 1,60,75,255).

17. Interest Expenses and Foreign Exchange Fluctuations directly attributable to the acquisition of fixed assets are being capitalized during the year as part of the cost of the assets up to the date of such asset is ready for its intended use aggregating Rs 4,00,98,225 and Rs 6,79,81,383 respectively.

18. Management based on the internal and technical evaluation (covering past experience and the performance of substantial parts of the plant & machineries of the site) has identified, to the extent practicable, significant parts i.e. components of fixed assets, primarily consisting of plant & machineries and reassessed the useful life of these components for adoption of component accounting approach, as applicable w.e.f. 1st April 2015 to the Companies Act 2013 and believe that useful life determined/applied as per schedule II on these substantial identified components, fairly reflects its estimate of useful life and residual value of machineries.


Mar 31, 2014

1 DISCLOSURE UNDER CLAUSE 32

Loans & advances outstanding at the year end and maximum amount outstanding during the year, which are required to be disclosed Under clause 32 of the listing agreement are as under:-

2 SEGMENT REPORTING AS PER AS-17

i) Primary Segment

The Company''s business activity falls within a single primary business segment of Flexible Packaging.

The company has common fixed assets for producing goods for domestic and overseas markets. Hence, separate figures for capital employed can not be furnished.

3 A) As required by Accounting Standard-18 "Related party disclosures" are as follows.

List of Related parties

a. Subsidiary Companies

1 Jindal Films India Ltd (Previously Known as Jindal Metal & Mining Limited )

2 Jindal Metal & Mining International Limited

3 Global Nonwovens Limited (w.e.f. 14.02.2014)

4 JPF Netherland B.V. (w.e.f. 18.01.2013)

5 JPF Dutch B.V. (w.e.f. 21.01.2013)

6 JPF Netherland Holding B.V. (w.e.f. 28.01.2013)

7 JPF USA Holding LLC (w.e.f. 23.01.2013)

8 JPF USA LLC (w.e.f. 24.01.2013)

9 JPF ITALY Holding SA (w.e.f. 14.05.2013)

10 JPF Luxembourg Holding S.a.r.l (Ltd. Liab. Co.) (w.e.f.14.05.2013)

11 Jindal Films America LLC (w.e.f. 01.10.2013)

12 Films Shawnee LLC (w.e.f. 01.10.2013)

13 Films LaGrange LLC (w.e.f. 01.10.2013)

14 Films Macedon LLC (w.e.f. 01.10.2013)

15 Jindal Films Europe Virton LLC (w.e.f. 01.10.2013)

16 Jindal Films Europe Brindsi Srl (w.e.f. 01.10.2013)

17 Jindal Films Europe Kerkrade B.V (w.e.f. 01.10.2013)

18 Jindal Films Europe S.a.r.l (w.e.f. 01.10.2013)

19 Jindal Films Singapore Pte.Ltd (w.e.f. 01.10.2013)

20 Jindal Films (Shanghai) Co. Ltd. (w.e.f. 10.09.2013)

21 Jindal Films Capital LLC (w.e.f. 01.10.2013)

22 Films International LLC (w.e.f. 03.12.2013)

b. Associates

1 Rexor Holding SAS

(Formerly Known as Jindal France SAS)

2 Hindustan Powergen Limited

NOTES

c. Key Management Personnels

1 Sh. Hemant Sharma (Upto 28.02.14)

2 Sh. R.B. Pal

3 Sh. Sameer Banerjee (Upto 25.09.13)

4 Sh. Inna Chandrakantha Rao (w.e.f. 01.03.14)

5 Sh. Sanjay Mittal (w.e.f. 25.09.13)

d. Enterprise owned by Major Shareholders of reporting Enterprise

1 Jindal Photo Investment Limited

2 Soyuz Trading Company Limited

3 Rishi Trading Company Limited

4 Consolidated Finvest & Holdings Ltd.

5 Jindal Poly Investment & Finance Company Limited

6 Jindal India Limited

7 Anchor Image and Films Private Limited

8 Anchor Image and Films Pte. Limited Signapore

e. Other Enterprises

1. Jindal India Powertech Limited

2. Jindal India Thermal Power Limited

3.2 Contingent Liabilities:

a.Bank Guarantees 16,94,89,982 18,50,76,397

b.Corporate Guarantees in favour of overseas lender of Subsidiaries 9,14,36,14,000

c. Outstanding Letters of Credit (Including Capital Goods) 89,31,49,730 72,66,17,154

d. Claims against Company, not acknowledged as debts 6,26,28,134 1,07,68,060

e.Demands raised by authorities against which, Company has filed appeals: -

i) Income Tax 13,41,84,802 5,11,44,555

ii) Excise Duties/Custom/Service Tax 8,13,13,695 7,95,76,725

iii) Sales Tax 19,29,34,553 19,21,49,092

3.3 Pursuant to the adoption of Accounting Standards as prescribed by Companies (Accounting Standards) Rules,2006 issued by Ministry of Corporate Affairs vide notification no.G.S.R.914 (E) dated 29th December, 2011 and as required by Accounting Standard 11, Loss of Rs 26,76,48,936 (previous year loss of Rs 21,59,98,217) on translation/settlement of foreign currency monetary items including borrowings have been shown as exceptional items in the profit and loss account.

3.4 A sum of Rs.45,676,415 (previous year Rs.11,322,004) being the difference between domestic vs. imported raw mate- rial prices prevailing at the year ended on 31st March 2014 on account of advance licences excess utilized for which exports are yet to be made, has been adjusted in the cost of raw material.

Export Incentive under Focus Market Scheme (FMS) amount to Rs 40,999,382. (Previous year Rs. Nil) has been credited in the account of raw material.

3.5 Advance receivable in cash or in kind includes Rs. 28,254,171 (Previous Year Rs. 28,254,171 ) being the amount of custom duty deposited against import of capital goods assessed under provisional assessments in earlier year.

3.6 Non – Current Investment includes 6 shares of Jindal Films India Ltd (Previously known as Jindal Metal & Mining Ltd). of which the Company is beneficial owner are held by certain individuals in fiduciary capacity.

3.7 Certain old balances of sundry debtors and sundry creditors are subject to reconciliation and confirmation.

3.8 Under the Package Scheme of Incentive 2001/2007 approved by the Government of Maharashtra, the Company is entitled to industrial promotion subsidy to the extent of 100% of the fixed capital investment or to the extent of taxes paid to the State Government within a period of 7 years, whichever is lower. During the year amount of subsidy receivable under the above said scheme amounting to Rs 512,030,553(previous Year Rs. 397,601,338) has been added to Capital Reserve.

3.9 In the opinion of the Board and to the best of their knowledge and belief, the realizable value of current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet.

3.10 Stores and spares consumed and salaries and wages incurred during the year for repair and maintenance of plant & machinery and sheds & building, have been charged to the former accounts wherever separation is not ascertainable.

3.11 The Company has not received from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

3.12 The Export obligation undertaken by the company for import of capital equipments under EPCG scheme of the Central Government at the concessional rate of custom duty are in the opinion of the management expected to be fulfilled within their respective due dates/extended due date.

3.13 a) Discontinued Operation

Company has discontinued the operation of Partially Oriented Yarn (POY) facility at Gulaothi, Uttar Pradesh and Pet film facility at Khanvel unit as it has been terminated through abandonment in earlier years as per Accounting Standard -24 issued by ICAI.Following is selected financial information included in loss from discontinued opera- tions for the Gulaothi and Khanvel unit:-

b) As per Accounting standard -28 " Impairment of Assets" issued by ICAI ,no further impairment loss has been considered by the management in assets of Gulaothi & Khanvel unit.

3.14 During the financial year, the Company has demerged its investment division with Jindal Poly Investment and Finance Company Limited (JPIFCL) as per Section 391 to 394 of the Companies Act, 1956. The Hon''ble High Court of Judicature at Allahabad has approved the scheme and passed order on 16th May, 2013 to demerge the Company and the appointed date was 1st April, 2012. Consequently for the year ended 31st March 2014 the demerger has been effected in the books of accounts and accordingly the figure of previous year are re casted. Pursuant to the order of Hon''ble High Court, JPIFCL has issued and allotted equity shares in the ratio of 1 (one) equity share of face value of Rs 10/- each, fully paid-up, to each shareholder of the Company for every 4 (four) equity shares of face value of Rs.10/- each held by such shareholder in the Company on the record date i.e. 18th July, 2013. Accordingly, JPIFCL has issued and allotted to the shareholders of the Company a total of 1,05,11,929 fully paid up equity shares of Rs.10/- each. The equity shares of JPIFCL are listed on the National Stock Exchange of India Limited (NSE) and the Bombay Stock Exchange Limited (BSE).

3.15 During the quarter company acquire 4,28,00,000 equity shares of Global Non woovens Limited (GNL) with an investment of Rs.42.80 crore, after acquisition GNL become subsidiary of the Company during the year.

The Company has pledged 3,61,08,000 equity shares of Rs.10/- each of Global Nonwoven Limited "GNL" a subsidiary Company and mortgaged 26.54 acres land of the Company situated at Nasik, Maharashtra (Leased out to GNL) to SBICAP Trustee Company Limited as security for Rs. 287.70 crore loan availed by GNL from consortium of Bankers.

3.16 During the year the Company had invested INR 167 Crores in the Zero Percent Redeemable Preference Share Capital (Redeemable at a premium of 10% within 15 year from the date of allotment) of Jindal India Powertech Limited (JIPL), a group-SPV company. JIPL is the holding Company of Jindal India Thermal Power Limited, which is setting up Power Plant (600MW x 2) at village Derang, District Angul, Odisha. Further, pursuant to the resolutions passed by the Board of Directors of the the Company from time to time and the last one dated 20th July 2013, the Company, JIPL and Jindal Photo Limited have jointly and severally undertaken to the lenders of JITPL to meet any requirement towards shortfall in equity and other project costs overrun in JITPL, in the manner and form satisfactory to JITPL lenders.

3.17 The Company has completed the ongoing overseas acquisition of BOPP Films business (comprising of five manufacturing units) of ExxonMobil USA through its overseas subsidiary namely JPF Netherlands BV(51 % holding by the company and balance 49 % holding hold by Anchor Image & Films Pte Ltd, Singapore) and its steps down subsidiaries by way of investment in equity capital, unsecured loan and Corporate guarantees to the extent of USD 160 million in favour of lenders of overseas entities for the purpose. The interests in the overseas acquisition are reflected in consolidated financial statements of the Company as required by Indian Accounting Standard.

3.18 The Income Tax Department had conducted search and seizure u/s 132 and survey u/s 133A of the Income Tax Act, 1961 during the financial year 2011-12 on various premises of the company. The department had issued notice u/s 153 A for reassessment for the assessment years 2006-07 to 2011-12 . Assessment for AY 2010-11 & 2011-12 has been completed and are contested before CIT(A). Assessment for remaining years are in progress.

3.19 Previous year''s figures have been regrouped and/or rearranged wherever required.


Mar 31, 2013

1 SEGMENT REPORTING AS PER AS-17

i) Primary Segment

Business Segment : The Company''s operating business are organised and managed separately according to the nature of products.

ii) Secondary Segment

Geographical Segment : The analysis of geographical segment is based on the geographical location of the customers.

iii) Corporate income and expenses are considered as part of unallocable income and expense'' which are not identifiable to any business segment.

2 A) As required by Accounting Standard-18 "Related party disclosure" issued by the Institute of Chartered Accountants of India are as follows:-

List of Related parties

a. Subsidiary Companies

1 Jindal Poly Films Investment Limited

2 Jindal Metal & Mining Limited

3 Jindal Metal & Mining International Limited

4 Jindal Poly Investment & Finance Company Limited (w.e.f.11.07.2012)

5 Jindal Resources (Muzambique) Lda (upto 10.09.2012)

6 Haldia Synthetic Rubber Ltd (upto 31.08.2012)

7 Trans India Mining Lda (upto 05.11.2012)

8 JPF Netherland B.V (w.e.f.18.01.2013)

9 JPF Dutch B.V (w.e.f. 21.01.2013)

10 JPF Netherland Holding B.V (w.e.f. 28.01.2013)

11 JPF USA Holding LLC (w.e.f. 23.01.2013)

12 JPF USA LLC (w.e.f. 24.01.2013)

b. Associates

1 Jindal India Powertech Limited

2 Rexor Holding SAS

(Formerly Known as Jindal France SAS)

3 Hindustan Powergen Limited

4 Consolidated Green Finvest Ltd.

c. Key Management personnels

1 Sh. Hemant Sharma

2 Sh. R.B. Pal

3 Sh. Sameer Banerjee

d. Controlling Enterprises/Major Shareholders of reporting Enterprise

1 Jindal Photo Investment Limited

2 Soyuz Trading Company Limited

3 Rishi Trading Company Limited

3.1 Pursuant to the adoption of Accounting Standards as prescribed by Companies (Accounting Standards) Rules''2006 issued by Ministry of Corporate Affairs vide notification no.G.S.R.914 (E) dated 29th December'' 2011 and as required by Accounting Standard 11'' Loss of Rs 2159.98 lacs (previous year loss of Rs 4763.93 lacs) on translation/settlement of foreign currency monetary items including borrowings have been shown as exceptional items in the profit and loss account.

a) During the previous year the company has made a provision of Rs 102.24 Lacs for permanent diminiution of its investment in Jindal Resources Muzambique Lda ''(a subsidiary Company) which has been shown as exceptional item.

b) During the Previous year the company has made a provision of Rs 5.00 Lacs for the diminution of its investment in Haldia Sythetic Rubber Ltd (a Subsidiary Company)due to the company has not been able to start its business '' which has been shown as exceptional item.

c) During the Previous year'' the Company has reversed Rs.560.00 Lacs/-'' which was charged to profit and loss account in the previous year on account of advance paid to vendor.d) During the Previous year'' the Company has disinvested 60% of its total shareholding in Jindal France SAS (wholly owned subsidiary)'' on which there is a loss of Rs. 1876.50 lacs. The balance 40% of the holding require a provision of Rs.1245.02 lacs on account of diminution in value of investment'' thus total amount of loss for Rs.3121.52 lacs has been shown as exceptional item.

3.2 A sum of Rs.11''322''004 (previous year Rs.12''469''349) being the difference between domestic vs. imported raw material prices prevailing at the year ended on 31st March 2013 on account of advance licences excess utilized for which exports are yet to be made'' has been adjusted in the cost of raw material.

3.3 Export Incentive under Duty Entitlement Pass Book Scheme (DEPB) amount to Rs. Nil (Previous year Rs. 114''565''148) has been credited in the account of raw material.

3.4 Advance receivable in cash or in kind includes Rs. 28''254''171 (Previous Year Rs. 28''254''171 ) being the amount of custom duty deposited against import of capital goods assessed under provisional assessments in earlier year.

3.5 Non – Current Investment includes the following:- (a) 6 shares of Jindal Metal & Mining Ltd. of which the Company is beneficial owner are held by certain individuals in fiduciary capacity.

(b) 6 shares of Jindal Poly films Investments Ltd. of which the Company is beneficial owner are held by certain individuals in fiduciary capacity.

(c) 6 shares of Jindal Poly Investment & Finance Co. Ltd of which the Company is beneficial owner are held by certain individuals in fiduciary capacity.

3.6 Certain old balances of sundry debtors and sundry creditors are subject to reconciliation and confirmation.

3.7 a) Under the Package Scheme of Incentive 2001/2007 approved by the Government of Maharashtra'' the Company is entitled to industrial promotion subsidy to the extent of 100% of the fixed capital investment or to the extent of taxes paid to the State Government within a period of 7 years'' whichever is lower.b) Till 31.03.12'' as per accounting policy followed by the company ''the amount of such subsidy receivable was shown under the head "Revenue from Opeartions"/"Other Income". During the year'' in view of legal opinion received from experts'' these subsidy should be governed by AS-12. Based on AS-12 dealing with accounting treatment of Government grant'' such incentives of Industrial promotion subsidy received are in nature of Capital receipt and should be credited to Capital reserve instead of "Revenue from Operations/Other Income".

Accordingly'' during the year amount of subsidy receivable under the above said scheme amounting to Rs 39''76''01''338 has been added to Capital Reserve . Consequently the profit for the current year is decreased by Rs 39''76''01''338 due to the change of above accounting policy (as required by AS-5) ''and not comparable with previous year figure to that extent. Further the impact of Rs.126''90''09''595 relating to the amount of Subsidy received/receivable in preceding financial years up to 31st March'' 2012 which are reflected in "Revenue from opeartions/other income" in that financial year are not transferred to capital reserve.

3.8 In the opinion of the Board and to the best of their knowledge and belief'' the realizable value of current assets'' loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet.

3.9 Stores and spares consumed and salaries and wages incurred during the year for repair and maintenance of plant & machinery and sheds & building'' have been charged to the former accounts wherever separation is not ascertainable.

3.10 The Company has not received from suppliers regarding their status under the Micro'' Small and Medium Enterprises Development Act'' 2006 and hence disclosures'' if any'' relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

3.11 The Export obligation undertaken by the company for import of capital equipments under EPCG scheme of the Central Government at the concessional rate of custom duty are in the opinion of the management expected to be fulfilled within their respective due dates/extended due date.

3.12 a) Discontinued Operation

Company has discontinued the operation of Partially Oriented Yarn (POY) facility at Gulaothi'' Uttar Pradesh and Pet film facility at Khanvel unit as it has been terminated through abandonment in earlier years as per Accounting Standard -24 issued by ICAI.Following is selected financial information included in loss from discontinued operations for the Gulaothi and Khanvel unit:-

b) As per Accounting standard -28 " Impairment of Assets" issued by ICAI ''no further impairment loss has been considered by the management in assets of Gulaothi & Khanvel unit.

3.13 The Board of Directors of the company at its meeting held on 26th November'' 2012 passed a resolution for demerger of its investment division with Jindal Poly Investment and Finance Company Limited. (a wholly owned subsidiary). The same has been sanctioned on dated 16th May 2013 by Honb''le High Court of Allahabad .The Company is in the course of receiving the formal order and filing the same with ROC and effect will be given in due course.

3.14 The company has pledged 428''571''429 equity shares of Rs. 10 each (Rs. 7 called and paid up) of Jindal India Powertech Limited "JIPL"'' an associate Company to IFCI Ltd as security for 14 % OCD issued by JIPL and subscribed by IFCI Ltd in terms of the Debenture subscription agreement between JIPL and IFCI Ltd for a sum of Rs 300 Crore.

3.15 Search & Seizure:

The Income Tax Department had conducted search and seizure u/s 132 and survey u/s 133A of the Income Tax Act''1961 during the financial year 2011-12 on various premises of the company and its directors/promoters and had seized various records of the company. Demand if any arises on this account will be provided as and when the case is finalized.

3.16 During the year one subsidiary company namely JPF Netherland B.V was incorporated and four step down subsidiaries namely (i) JPF Dutch B.V. (ii) JPF Netherland Holding B.V. (iii) JPF USA Holding LLC and (iv) JPF USA LLC were incorporated'' but no investment business activity have carried out till 31.03.2013

3.17 Previous year''s figures have been regrouped and/or rearranged wherever required.


Mar 31, 2012

1 RELATED PARTY DISCLOSURE

A) As required by Accounting Standard-18 "Related party dosclosure" issued by the Institute of Chartered Accountants of India are as follows:-

List of Related parties

a. Associates

1 Jindal India Powertech Limited

2 Rexor Holding SAS (W.e.f 29.03.2012) (Formerly Known as Jindal France SAS)

b. Companies

1 Soyuz Trading Company Limited

2 Rishi Trading Company Limited

3 Consolidated Photo and Finvest Limited

4 Jindal Photo Investment Limited

5 Consolidated Finvest and Holding Limited

6 Jindal Photo Limited

7 Jasmin Investment Limited

8 Consolidated Finvest and Investment Limited

9 Passion Tea Pvt. Limited

10 Anchor Image & Films Pvt. Limited

11 Jindal India Limited

12 Universal Foils Limited

c. Subsidiary Companies

1 Hindustan Thermal Power Generation Limited (Formerly Hindustan Polysters Ltd.)

2 Jindal Solar Rajasthan Limited

3 Jindal Solar Powertech Limited

4 Jindal Poly Films Investment Limited

5 Jindal Metal & Mining Limited

6 Haldia Synthetic Rubber Ltd

7 Jindal Resources (Mozambique) Lda

8 Trans Indian Mining Lda

9 Jindal Metal & Mining International Limited (w.e.f.15.08.2011)

10 Jindal Poly Finance Limited (w.e.f 13.05.2011)

11 Rexor Holding SAS (Up to 28.03.2012) (Formerly Known as Jindal France SAS)

12 Rexor SAS ( Up to 28.03.2012)

31.03.12 31.03.11 Rs. Rs.

2.1. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) 1,276,561,221 770,481,459

2.2 Contingent Liabilities:

a. Bank Guarantees 159,829,349 128,897,507

b. Outstanding Letters of Credit (Including Capital Goods) 1,586,719,520 1,290,308,211

c. Claims against Company, not acknowledged as debts 10,768,060 16,401,284

d. Uncalled liability of partly paid shares 1,308,000,000 1,308,000,000

e. Demands raised by authorities against which, Company has filed appeals:-

i) Income Tax 58,128,668 58,128,668

ii) Excise Duties/ Service Tax 53,665,347 –

iii) Sales Tax 181,158,981 22,493,097

(iv) Custom Duties 61,366,000 61,366,000

2.3 Exceptional items includes following:- a) During the year, the Company has disinvested 60% of its total shareholding in Jindal France SAS (wholly owned subsidiary), on

which there is a loss of Rs. 1876.50 lacs. The balance 40% of the holding require a provision of Rs.1245.02 lacs on account of diminution in value of investment, thus total amount of loss for Rs.3121.52 lacs has been shown as exceptional item.

(b) Pursuant to the adoption of Accounting Standards as prescribed by Companies (Accounting Standards) Rules,2006 issued by Ministry of Corporate Affairs vide notification no.G.S.R.914 (E) dated 29th December, 2011 and as required by Accounting Standard 11 –

I. Loss of Rs 4763.93 lacs (previous year gain of Rs 612.17 lacs) on translation/settlement of foreign currency monetary items including borrowings have been shown as exceptional items in the profit and loss account.

II. Gain on account of hedging against export exposures amounting to Rs Nil, (previous year Rs Nil) have been accounted under the head other income/(other expenses) in the profit & loss account.

(c) During the year the company has made a provision of Rs 102.24 Lacs for permanent diminiution of its investment in Jindal Resources Muzambique Lda, (a subsidiary Company) which has been shown as exceptional item.

(d) During the year the company has made a provision of Rs 5.00 Lacs for the diminution of its investment in Haldia Sythetic Rubber Ltd (a Subsidiary Company)due to the company has not been able to start its business, which has been shown as exceptional item.

(e) During the year, the Company has reversed Rs.560,00,000/-, which was charged to profit and loss account in the previous year on account of advance paid to vendor.

2.4 A sum of Rs.12,469,349 (previous year Rs.21,197,894) being the difference between domestic vs. imported raw material prices prevailing at the year ended on 31st March 2012 on account of advance licences excess utilized for which exports are yet to be made, has been adjusted in the cost of raw material.

Export Incentive under Duty Entitlement Pass Book Scheme (DEPB) amount to Rs. 114,565,178 (Previous year Rs. 174,115,932) has been credited in the account of raw material.

2.5 Advance receivable in cash or in kind includes Rs. 28,254,171 (Previous Year Rs. 28,254,171 ) being the amount of custom duty deposited against import of capital goods assessed under provisional assessments in earlier year.

2.6 Non – Current Investment includes the following:- (a) 600 shares of Hindustan Thermal Power Generation Ltd. (Formerly Hindustan Polyester Ltd.) of which the Company is beneficial owner are held by certain individuals in fiduciary capacity.

(b) 6 shares of Jindal Metal & Mining Ltd. of which the Company is beneficial owner are held by certain individuals in fiduciary capacity.

(c) 6 shares of Jindal Poly films Investments Ltd. of which the Company is beneficial owner are held by certain individuals in fiduciary capacity.

(d) 6 shares of Haldia Synthetic Rubber Ltd of which the Company is beneficial owner are held by certain individuals in fiduciary capacity.

(e) 6 shares of Jindal Poly Finance Ltd of which the Company is beneficial owner are held by certain individuals in fiduciary capacity.

2.7 Certain old balances of sundry debtors and sundry creditors are subject to reconciliation and confirmation.

2.8 Under the Package Scheme of Incentive approved by the Government of Maharashtra, the Company is entitled to industrial promotion subsidy to the extent of 100% of the fixed capital investment or the extent of taxes paid to the State Government within a period of 7 years, whichever is lower. During the year, the Company is entitled for an amount of Rs. 432,384,451, (previous year Rs.474, 219,586), under that scheme and the same has been shown as revenue from operation.

2.9 In the opinion of the Board and to the best of their knowledge and belief, the realizable value of current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet.

2.10 Stores and spares consumed and salaries and wages incurred during the year for repair and maintenance of plant & machinery and sheds & building, have been charged to the former accounts wherever separation is not ascertainable.

2.11 The Company has not received from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

2.12 The Export obligation undertaken by the company for import of capital equipments under EPCG scheme of the Central government at the concessional rate of custom duty are in the opinion of the management expected to be fulfilled within their respective due dates/extended due dates.

2.13 During the year a part of the Work In Progress Plant & Machinery at Gulaothi & Khanvel Units were disposed off during the year for Rs. 230.84 Lacs. The same has been adjusted from Gross Block of the WIP under Fixed Asset, the profit / loss, if any, is ascertainable only after completion of the total disposal of Plant & Machinery.

2.14 Search and seizure

The Income Tax Department had conducted search and seizure u/s 132 and survey u/s 133A of the Income Tax Act,1961 on 14.11.2011 on various premises of the company and its directors/promoters and had seized various records of the company .

Till date no notice has been received by the company for initiation of proceedings u/s 153C.The tax liability, if any arises will be provided as and when the case is finalized.

2.15 During the year , company has pledged 428,571,429 equity shares of Rs. 10 each (Rs.7 Called and paid up)of Jindal India Powertech limited ("JIPL"), an associate company, to IFCI Ltd as security for 14 % OCD issued by JIPL subscribed by IFCI Ltd in terms of the Debenture subscription agreement between JIPL ans IFCI Ltd for a sum of Rs. 300 crore.

2.16 Previous year's figures have been regrouped and/or rearranged wherever required.


Mar 31, 2011

31.03.2011 31.03.2010 Rs. Rs.

1. Contingent Liabilities:

a. Bank Guarantees 128,897,507 128,897,507

b. Outstanding Letters of Credit (Including Capital Goods) 1290,308,211 444,994,483

c. Claims against Company, not acknowledged as debts 16,401,284 16,721,284

d. Uncalled liability of partly paid shares 1308,000,000 3309,000,000

e. Demands raised by authorities against which, Company has filed appeals:

i) Income Tax 58,128,668 77,673,397

ii) Excise Duties - 19,680,000

iii) Sales Tax 22,493,097 22,493,097

iv) Custom Duties 61,366,000 8,160,000

2. Computation of Net Profit under section 198 of the Companies Act, 1956 for the purpose of remuneration payable to Whole Time Directors has not been enumerated as no commission is payable to them.

b) During the year an amount of Rs. 48,162,594 has been transferred to Repair and Maintenance from Capital Work in progress.

3. Term Loan installments due within next one year is amounting to Rs. 7082.27 Lacs. (Rs. 2979.91 lacs).

4. Pursuant to the adoption of Accounting Standards as prescribed by Companies (Accounting Standards) Rules,2006 issued by Ministry of Corporate Affairs vide notification no. G.S.R.739 (E) dated December 7, 2006 and as required by Accounting Standard 11 –

a) Gain of Rs 612.17 lacs (previous year Rs. 4649.40 lacs) on translation/settlement of foreign currency monetary items including borrowings have been shown as exceptional items in the profit and loss account.

b) Gain on account of hedging against export exposures amounting to Rs. Nil, (previous year loss of Rs. 50.90 lacs) have been accounted under the head other income/(other expenses) in the profit & loss account.

5. A sum of Rs.21,197,894 (previous year Rs.12,394,101) being the difference between domestic vs. imported material prices prevailing at the end of the period ended 31st March 2011 on account of advance licences excess utilized for which exports are yet to be made, has been adjusted in the cost of raw material.

Export Incentive under Duty Entitlement Pass Book Scheme (DEPB) amount to Rs. 174,115,932 (Previous year Rs. 152,977,025) has been credited in the account of raw material.

6. Advance receivable in cash or in kind includes Rs. 28,254,171 (Previous Year Rs. 28,254,171) being the amount of custom duty deposited against import of capital goods assessed under provisional assessments in earlier year.

7 (a) 600 shares of Hindustan Thermal Power Generation Ltd. (Formerly Hindustan Polyester Ltd.) of which the Company is beneficial owner are held by certain individuals in fiduciary capacity.

(b) 6 shares of Jindal Metal & Mining Ltd. of which the Company is beneficial owner are held by certain individuals in fiduciary capacity.

(c) 6 shares of Jindal Poly Films Investments Ltd. of which the Company is beneficial owner are held by certain individuals in fiduciary capacity.

(d) 6 shares of Haldia Synthetic Rubber Ltd. of which the Company is beneficial owner are held by certain individuals in fiduciary capacity.

8. Certain old balances of sundry debtors and sundry creditors are subject to reconciliation and confirmation.

9. Under the Packaging Scheme of Incentive approved by the Government of Maharashtra, the Company is entitled to industrial promotion subsidy to the extent of 100% of the fixed capital investment or the extent of taxes paid to the State Government within a period of 7 years, whichever is lower. During the year, the Company is entitled for an amount of Rs.474,219,586 (Previous Year Rs.273,237,356), under that scheme and the same has been shown as income, under the head of other income.

10. In the opinion of the Board and to the best of their knowledge and belief, the realizable value of current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet.

11. Stores and spares consumed and salaries and wages incurred during the year for repair and maintenance of plant & machinery and sheds & building, have been charged to the former accounts wherever separation is not ascertainable.

12. The Company has not received from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

13. The Export obligation undertaken by the company for import of capital equipments under EPCG/100% EOU scheme of the Central Government at the concessional or zero rate of custom duty are in the opinion of the management expected to be fulfilled within their respective due dates/extended due dates.

14. a) As per Accounting Standard 28 issued by ICAI, impairment loss on Assets at Khanvel (Being one of the unit Manufacturing PET Films of the company) was provided by the company during the year ended 31st March 2003. Now in the opinion of the management, there is no further loss on account of impairment of assets, lying at Khanvel in which operations have been suspended.

b) (i) Operations in respect of Company's units at Gulaothi were lying suspended. However carrying cost of these units are reflected at historical cost. The management is of view that there is no loss on account of impairment of assets as required by AS 28 issued by ICAI as the realisable value of these assets are higher than the carrying cost.

(ii) A part of the scrapped Plant & Machinery at Gulaothi was disposed off during the year for Rs. 77.16 Lacs. The same has been adjusted from Net Block as profit / loss, if any, is ascertainable only after completion of the total disposal of Plant & Machinery.

15. Previous year's figures have been regrouped and/or rearranged wherever required.

16 Additional information pursuant to the provision of the part II of Schedule II of the Companies, Act,1956 (as certifi ed & classifi ed by the Management)

(The Company has issued and allotted 2,30,21,138 equity shares on 26th October, 2010 as bonus shares by capitalizing reserves. Consequently the comparative EPS fi gures in all the cases have been recalculated giving effect of the Bonus Shares, as required by Accounting Standard (AS) 20).

17 Segment Reporting Policies

i) Primary Segment

Business Segment : The Company's operating business are organised and managed separately according to the nature of products.

ii) Secondary Segment

Geographical Segment : The analysis of geographical segment is based on the geographical location of the customers.

iii) Corporate income and expenses are considered as part of unallocable income and expense, which are not identifi able to any business segment.

18 A) As required by Accounting Standard-18 "Related Party Disclosure" issued by the Institute of Chartered Accountants of India are as follows:-

List of Related Parties

a. Companies/Individuals/Associates:

1 Sh. B.C.Jindal

2 Sh. S.S.Jindal

3 Smt. Subhadra Jindal

4 Miss Akriti Jindal

5 Agile Properties Ltd.

6 Bajaloni Group Ltd.

7 Conslidated Finvest & Holdings Ltd.

8 Consolidated Buildwell Ltd.

9 Consolidated Photo & Finvest Ltd.

10 Consolidated Realtors Ltd.

11 Jesmine Investment Ltd.

12 Jindal Imaging Ltd.

13 Jindal India Ltd.

14 Jindal Meadows Ltd.

15 Jindal Photo Investments Ltd.

16 Jindal Photo Ltd.

17 Jindal Realtors Ltd.

18 Jindal India Thermal Power Ltd.

19 Jumbo Finance Ltd.

20 Jupax Barter Pvt..Ltd.

21 Pasion Tea Private Ltd.

22 Rishi Trading Co. Ltd.

23 Soyuz Trading Co. Ltd.

24 Vigile Farms Ltd.

25 Jindal India Finvest & Holdings Limited

26 Mandakini Coalmines Limited

27 Jindal India Powertech Limited

28 Jindal India Powerventures Limited

29 Jindal Buildmart Limited

30 Jindal Realmart Private Limited

31 Hindustan Powergen Limited

32 Jindal Minerais & Metais (Mozambique) Lda

33 Consolidated Green Finvest P Ltd.

b. Subsidiary Companies

1 Hindustan Thermal Power Generation Limited

2 Jindal France SAS

3 Rexor SAS

4 Jindal Solar Rajasthan Limited

5 Jindal Solar Powertech Limited

6 Jindal Poly Films Investment Limited (w.e.f. 03.11.2010)

7 Jindal Metal & Mining Limited (w.e.f. 16.11.2010)

8 Haldia Synthetic Rubber Ltd (w.e.f. 21.02.2011)

9 Jindal Resources (Mozambique) Lda (w.e.f. 05.10.2010)

10 Trans Indian Mining Lda (w.e.f. 17.03.2011)

c. Key Management Personnel

1 Sh. R.B. Pal

2 Sh. Sameer Banerjee

3 Sh. Sanjay Mittal


Mar 31, 2010

31.03.10 Rs. 31.03.09 Rs. 1. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) 61,016,528 143,035,496

2. Contingent Liabilities:

a. Bank Guarantees 128,897,507 90,689,607

b. Outstanding Letters of Credit (Including Capital Goods) 444,994,483 1,222,201,138

c. Claims against Company, not acknowledged as debts 9,369,284 94,931,000 d. Uncalled liability of partly paid shares 3,309,000,000 1,284,000,000 e. Demands raised by authorities against which, Company has filed appeals: -

i) Income Tax 77,673,397 445,38,332

ii) Excise Duties 27,032,000 274,61,000

iii) Sales Tax 22,493,097 224,93,097

iv) Custom Duties 8,160,000 388,22,000

3. Computation of Net Profit under section 198 of the Companies Act, 1956 for the purpose of remuneration payable to Whole Time Directors has not been enumerated as no commission is payable to them.

4. Term Loan installments due within next one year is amounting to Rs 2979.91 Lacs. (Rs 3812.99 lacs).

5. Pursuant to the adoption of Accounting Standards as prescribed by Companies (Accounting Standards) Rules,2006 issued by Ministry of Corporate Affairs vide notificaton no.G.S.R.739 (E) dated December 7, 2006 and as required by Accounting Standard 11 –

a) Loss of Rs 4649.40 lacs (previous year Rs 6237.83 lacs) on translation/settlement of foreign currency monetary items including borrowings have been shown as exceptional items in the profit and loss account.

b) Gain/(Loss) on account of hedging against export exposures amounting to Rs 50.90 lacs, (previous year loss of Rs 1400.55 lacs) have been accounted under the head other income/(other expenses) in the profit & loss account.

6. A sum of Rs.12,394,101 (previous year Rs.14,972,861) being the difference between domestic vs. imported material prices prevailing at the end of the period ended 31st March 2010 on account of advance licences excess utilized for which exports are yet to be made, has been adjusted in the cost of raw material.

Export Incentive under Duty Entitlement Pass Book Scheme (DEPB) amount to Rs. 152,977,025 (Previous year Rs. 150,031,046) has been credited in the account of raw material.

7. Advance receivable in cash or in kind includes Rs. 28,254,173 (Previous Year Rs. 28,254,173 ) being the amount of custom duty deposited against import of capital goods assessed under provisional assessments in earlier year.

8. (a) 600 shares of Hindustan Thermal Power Generation Ltd. (Formerly Hindustan Polyester Ltd.) of which the Company is beneficial owner are held by certain individuals in fiduciary capacity.

(b) 6 shares of Jindal Packaging Films Ltd.(Under amalgamation with Hindustan Powergen Ltd) of which the Company is beneficial owner are held by certain individuals in fiduciary capacity.

9. Certain old balances of sundry debtors and sundry creditors are subject to reconciliation and confirmation.

10. Under the Packaging Scheme of Incentive approved by the Government of Maharashtra, the Company is entitled to industrial promotion subsidy to the extent of 100% of the fixed capital investment or the extent of taxes paid to the State Government within a period of 7 years, whichever is lower. During the year, the Company is entitled for an amount of Rs. 273,237,356, (previous year Rs. 89,168,202), under that scheme and the same has been shown as income, under the head of other income.

11. In the opinion of the Board and to the best of their knowledge and belief, the realizable value of current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet.

12. Stores and spares consumed and salaries and wages incurred during the year for repair and maintenance of plant & machinery and sheds & building, have been charged to the former accounts wherever separation is not ascertainable.

13. The Company has not received from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

14. The Export obligation undertaken by the company for import of capital equipments under EPCG/100% EOU scheme of the Central government at the concessional or zero rate of custom duty are in the opinion of the management expected to be fulfilled within their respective due dates/extended due dates.

15. a) As per Accounting Standard 28 issued by ICAI, impairment loss on Assets at Khanvel (Being one of the unit Manufacturing PET Films of the company) was provided by the company during the year ended 31st March 2003. Now in the opinion of the management, there is no further loss on account of impairment of assets, lying at Khanvel in which operations have been suspended.

b) Operations in respect of Companys units at Gulaothi were lying suspended. However carrying cost of these units are reflected at historical cost. The management is of view that there is no loss on account of impairment of assets as required by AS 28 issued by ICAI as the realisable value of these assets are higher than the carrying cost.

16. Previous years figures have been regrouped and/or rearranged wherever required.

17. Additional information pursuant to the provision of the part II of Schedule II of the Companies Act,1956 (as certified & classified by the Management)

18. Segment Reporting Policies

i) Primary Segment

Business Segment : The Companys operating business are organised and managed separately according to the nature of products.

ii) Secondary Segment

Geographical Segment : The analysis of geographical segment is based on the geographical location of the customers.

iii) Corporate income and expenses are considered as part of unallocable income and expense, which are not identifiable to any business segment.

19 A) As required by Accounting Standard -18 "Related party disclosure" issued by the Institute of Chartered Accountants of India are as follows:-

List of Related parties

a. Companies/Individuals/Associates

1 Sh. B.C.Jindal

2 Sh. S.S.Jindal

3 Smt. Subhadra Jindal

4 Miss Akriti Jindal

5 Agile Properties Ltd.

6 Bajaloni Group Ltd.

7 Conslidated Finvest & Holdings Ltd.

8 Consolidated Buildwell Ltd.

9 Consolidated Photo & Finvest Ltd.

10 Consolidated Realtors Ltd.

11 Jesmine Investment Ltd.

12 Jindal Imaging ltd

13 Jindal India Ltd

14 Jindal Meadows Ltd.

15 Jindal Photo Investments Ltd

16 Jindal Photo Ltd

17 Jindal Realtors Ltd

18 Jindal India Thermal Power Ltd.

19 Jumbo Finance Ltd

20 Jupax Barter Pvt..Ltd

21 Pasion Tea Private Ltd.

22 Rishi Trading Co. Ltd

23 Soyuz Trading Co. Ltd

24 Vigile Farms Ltd.

25 Jindal India Finvest & Holdings Limited

26 Mandakini Coalmines Limited

27 Jindal India Powertech Limited

28 Jindal India Powerventures Limited

29 Jindal Buildmart Limited

30 Jindal Realmart Private Limited

31 Hindustan Powergen Limited

32 Indian Software Consultancy Limited

b. Subsidiary Companies

1 Hindustan Thermal Power Generation Limited (Formerly Hindustan Polysters Ltd.)

2 Jindal Packagings Limited ( up to 23.09.2009)

3 Jindal France SAS

4 Rexor SAS

5 Jindal Solar Rajasthan Limited (w.e.f. 10.02.2010)

6 Jindal Solar Powertech Limited (w.e.f. 11.02.2010)

c. Key Management personnels

1 Sh. Sameer Banerjee

2 Sh. Sumant Singhal (up to 20.01.2010)

3 Sh. Sanjay Mittal (up to 31.07.2009)

4 Sh. R.B. Pal (w.e.f. 17.12.2009)