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Notes to Accounts of JMC Projects (India) Ltd.

Mar 31, 2015

1. Contingent Liabilities in respect of :

(Rs,in Lacs)

Particulars 2014-15 2013-14

A. Bank Guarantees 6.50 17.00

B. Guarantees given in respect of performance of contracts of Subsidiaries and Joint 17671.21 24491.12 Ventures in which Company is one of the member/holder of substantial equity

C. Guarantee given in favour of a subsidiary for Loan obtained by them 2250.00 -

D. Claims against the Company not acknowledged as debts (Refer note below) 263.02 640.28

E. Show Cause Notice Issued by Service Tax Authorities 5406.00 5211.28

F. Trichy Madurai Road Project Royalty Matter 39.87 39.87

G. Disputed Income Tax Demand in appeal before Appellate Authorities (Excludes 7610.29 7591.71

Amount of Rs. 1794.13 (P.Y. Rs. 1794.13) considered in [J] hereinafter)

H. Disputed Income Tax Demand of Joint Ventures in appeal before Appellate Authorities 8.77 240.08

(Excludes Amount of Rs. 214.70 (P.Y. Rs. 196.21) considered in [J] hereinafter) I. Disputed VAT Demand in appeal before Appellate Authorities 4428.61 952.72

J. Income Tax (Net of Deferred Tax) on the claim made of the deductions u/s. 80-IA (4) 2488.32 2657.23 of the Income Tax Act, 1961. (Refer note 28)

Note : In case where Company has raised the claims on clients against which counter claims have been raised by clients, the excess of counter claims raised by client over the amount of its claims only are considered in the above figures.

2. The Finance Act (2), 2009 has amended section 80-IA (4) of the Income Tax Act, 1961 by substituting an explanation to section 80-IA with retrospective effect from 01-04-2000. On the basis of the legal opinion of the experts and decided cases, the Company has continued to claim deduction under section 80-IA (4) of the Act on eligible projects and consequently the Company considers it appropriate not to create a liability for provision of Income Tax. However, an amount of Income tax (Net of Deferred Tax) of Rs. 2488.32 (P.Y. Rs. 2657.23) (include the amount of tax applicable on the share of profit of Joint Venture Business claiming such deduction) has been disclosed as a contingent liability in note no. 27[J] to these Accounts.

3. Capital & Other Commitments

(RS.in Lacs)

Particulars 2014-15 2013-14

Capital Commitments

Estimated amount of contracts remaining to be executed on capital account and not 3499.00 1222.81

provided for (Net of advances)

4. In the opinion of the Management, the assets other than Fixed Assets and Non Current Investments have a realizable value, in the ordinary course of business, approximately of the amount at which they are stated in these financial statements. Balances of parties are subject to confirmation.

5. Lease Transactions

The Company's significant leasing / licensing arrangements are mainly in respect of residential / office premises and equipments (operating lease). Lease agreements in respect of residential / office premises and certain equipments are cancellable and renewable by mutual consent on mutually agreed terms. Certain equipments are on non-cancellable operating lease. The aggregate lease rental / hire charges payable on these premises / equipments are charged as rent & hire charges amounting to Rs. 2773.50 lacs (P.Y. Rs. 2684.02 lacs). Future estimated minimum lease rentals and their present values in respect of non-cancellable operating leases are as under:

6. Retirement Benefits

a. Defined Contribution Plan

The Company makes contribution towards provident fund and superannuation fund to defined contribution retirement plans for qualifying employees. The provident fund plan is operated by the regional provident fund commissioner and the superannuation fund is administered by the LIC. Under the schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement contribution schemes to fund benefits.

The Company recognized Rs.749.79 lacs (P.Y. Rs. 643.64 lacs ) for Provident Fund contributions and Rs. 84.04 Lacs (P.Y. Rs.111.85 lacs ) for Superannuation contributions in the Statement of Profit & Loss. The contribution payable to these plans by the Company are at rates specified in the rules.

b. Defined Benefit Plan

The Company makes annual contributions to the employee's Group Gratuity Cash Accumulation Scheme of the Life Insurance Corporation of India and SBI Life Insurance, a funded benefit plan for qualifying employees. The scheme provides for lump sum payment to vested employees at retirement, upon death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

The present value of the defined benefit obligation and the related current service cost are measured using the projected unit credit method as per actuarial valuation carried out at balance sheet date.

The following table sets out the funded status of the gratuity plan and the amount recognized in the Company's financial statements as at March 31, 2015.

8. Segmental Reporting

The Company recognizes construction as the only business segment, hence there are no reportable segments under AS 17.

9. Joint Ventures

I The Company is having consortium Joint Ventures named JMC-Associated JV, JMC-Taher Ali JV (Package I, II & III), JMC- PPPL JV, JMC ATEPL JV, JMC - GPT- Vijaywargi - Bright Power JV, JMC- Vijaywargi - Bright Power JV, KPTL - JMC - Yadav JV and JMC - GPT JV under work sharing arrangement. The revenue for work done is accounted, in accordance with the accounting policy followed by the Company, as that of independent contract to the extent work is executed.

II In respect of contracts executed in Joint Venture entities, the services rendered to the Joint Venture entities are accounted as revenue for the work done. The share of profit / loss in Joint Venture entities other than Joint Venture Company has been accounted for and the same is reflected as investments or current liabilities in books of the Company.

10 Employees Stock Option

The Company has provided share-based payment plan to its employees for the year ended March 31, 2015. The Company has followed Intrinsic Value Method and has given accounting treatment as per Guidelines issued by Securities & Exchange Board of India. The details are as follows:

11 Micro & Small Enterprises

The disclosure in respect of the amount payable to enterprises which have provided goods and services to the Company and which qualify under the definition of micro and small enterprises, as defined under Micro, Small and Medium Enterprises Development Act, 2006 has been made in the Financial statement as at March 31, 2015 based on the information received and available with the Company. On the basis of such information, credit balance of such enterprises is NIL as at March 31, 2015. Auditors have relied upon the information provided by the Company.

12 The Management is of the opinion that as on the Balance Sheet date, there are no indications of a material impairment loss on Fixed Assets, hence the need to provide for impairment loss does not arise.

13. Pursuant to Companies Act, 2013 (the Act), effective from April 1, 2014, the Company has revised depreciation rates on fixed assets based on useful life specified in Schedule II of the Act or assessed on technical evaluation by the management as mentioned in significant accounting policies in these financial statements which is not longer than useful life specified in aforesaid Schedule II of the Act. As a result of the change, depreciation charge for the year ended March 31, 2015 is lower by Rs. 1425.43 lacs. In respect of assets whose useful life is already exhausted as on April 1, 2014 sum of Rs. 996.10 lacs, i.e. Rs. 657.53 lacs (net of deferred tax) has been adjusted against the opening balance of General reserve in these financial stamens in accordance with Schedule II of the Act.

14. Information as required under Clause 32 of Listing Agreement with Stock Exchanges with regard to Loans to Subsidiaries which are without interest and having no repayment schedule:

15. The company has entered into derivative contracts including forward contracts to hedge its risk associated with foreign currency fluctuations. Company does not use derivative contracts including forward contracts for speculative purpose.

16. Previous Year figures have been regrouped and / or rearranged wherever considered necessary.


Mar 31, 2014

Notes:

Nature of Security Terms of Repayment

A. (a) 9.5% Secured Redeemable Non-Convertible Debentures (NCDs) :-

First charge on movable fixed NCDs are repayable in tranches at the assets of the Company to the end of 4th and 5th Year Rs. 2,000 lacs extent of 1.25 times of the and Rs. 1,500 lacs, respectively, from amount of NCDs in pari passu date of allotment i.e. July 15, 2010. with a Bank in (b) (2) (I) (ii) and another Bank in (b) (2) (I) (iii), and first charge by mortgage of a land at Maharajpura, Kadi, Gujarat.

(b) (1) Foreign Currency Term Loans from Banks (FCL):-

External Commercial Borrowing FCL is repayable in 11 equal of US $ 84.62 lacs (P.Y. US quarterly instalments of US $ 100 lacs) is secured by $ 769,230.77 each and carry interest first charge on specific @ 6 months LIBOR plus spread. movable fixed assets financed by them.

(b) (2) (I) Rupee Term Loans from Banks :-

(b) (2) (I) (i)

Term Loan from a consortium Term Loan is repayable in 16 equal Bank amounting to Rs. 2,499.08 quarterly instalments of lacs (P.Y. Rs. 2,894.39 lacs) Rs. 156.25 lacs each from April, 2014 is secured by first and with varying interest rate linked to exclusive charge over the base rate of Bank from time to time. fixed assets financed by them.

(b) (2) (I) (ii)

Term Loan from a Bank Term Loan is repayable in 2 equal amounting to Rs. 833.33 lacs quarterly instalments of (P.Y. Rs. 2500.00 lacs) is Rs. 416.67 lacs each. secured by first charge on movable fixed assets exluding assets charged exclusively to term lender in (b) (1), b (2) (I) (i) and (b) (2) (II) in pari passu with debenture holders to the extent of 1.25 times of the amount of NCDs and a Bank in (b) (2) (I) (iii).

(b) (2) (I) (iii)

Term Loan from a Bank Term Loan is repayable in 15 equal amounting to Rs. 6,093.75 lacs quarterly instalments with varying (P.Y. Rs. 6,500.00 lacs) is interest rate linked to base rate secured by first charge on of Bank from time to time. movable fixed assets excluding assets charged exclusively to term lender in b (1), b (2) (I) (i) and b (2) (II) in paripassu with debenture- holders to the extent of 1.25 times of the amount of NCDs and a bank in (b) (2) (I) (ii).

(b) (2) (II) Rupee Term Loan from NBFC :-

Term Loan from NBFC amounting Term Loan is repayable in 48 months to Rs. 840.31 lacs (P.Y. Rs. through quarterly instalments Nil) is secured by first and commencing from the end of 180 days exclusive charge by way of from the date of first disbursement, hypothecation for equipments i.e. 18th October, 2013 with interest financed by them. payable monthly at varying interest rate linked to

(b) (2) (III) Loan against Vehicles / Equipments :

Loans of Rs. 136.10 lacs 60 monthly instalments beginning from (P.Y. Rs. 131.22 lacs) are the month subsequent to disbursement. secured by way of charge on specific equipments and vehicles financed by them on different loans.

B. Unsecured Loans :

(1) Fixed Deposits from public. Fixed deposits maturing at 12, 24 and 36 months from the date of deposit with varying interest rate with reference to tenure of deposits.



(2) Term Loan from a Bank Fixed deposits maturing at 12, 24 amounting to Rs. 10,000.00 lacs and 36 months from the date of (P.Y. Rs. Nil). deposit with varying interest rate with reference to tenure of deposits. Term Loan is repayable in unequal quarterly instalments every year, i.e. 10% for 2nd & 3rd year and 20% from 4th to 7th year, starting from the end of 5th quarter from 11th March, 2014, with varying interest rate linked to base rate of Bank from time to time.Borrower has a right to prepay the facility anytime and lender has a right to recall the facility, after 5 years from the first drawdown date after 15 days notice. NOTES TO THE ACCOUNTS

1. Contingent Liabilities In Respect Of :

Particulars 2013-14 2012-13

A. Bank Guarantees 17.00 59.50

B. Guarantees given in respect of performance of contracts of Joint Venture Entities 28,977.43 28,121.28 & Associates in which Company is one of the member/holder of substantial equity

C. Claims against the Company not acknowledged as debts (Refer note below) 640.28 674.59

D. Show Cause Notice issued by Service Tax Authorities 5,211.28 2,705.55

E. Disputed Royalty Demand under Tamil Nadu Minor Mineral Concession Rules in - 426.90 appeal before High Court

F. Trichy Madurai Road Project royalty matter 39.87 39.87

G. Disputed Income Tax Demand in appeal before Appellate Authorities (Excludes 7,591.71 634.61 Amount of Rs. 1,794.13 lacs considered in [J] hereinafter)

H. Disputed Income Tax Demand of Joint Ventures in appeal before Appellate 240.08 479.97 Authorities (excludes amount of Rs. 196.21 lacs considered in [J] hereinafter)

I. Disputed VAT Demand in appeal before Appellate Authorities 952.72 1,580.93

J. Income Tax (Net of Deferred Tax) on the claim made of the deductions u/s. 80- 2,657.23 2,499.12 IA (4) of the Income Tax Act, 1961. (Refer note 28)

Note : In case where Company has raised the claims on clients against which counter claims have been raised by clients, the excess of counter claims raised by client over the amount of its claims only are considered in the above figures.

2. The Finance Act (2), 2009 has amended section 80-IA (4) of the Income Tax Act, 1961 by substituting an explanation to section 80-IA with retrospective effect from 1st April, 2000. On the basis of the legal opinion of the experts and decided cases, the Company has continued to claim deduction under section 80-IA (4) of the Act on eligible projects and consequently the Company considers it appropriate not to create a liability for provision of Income Tax. However, an amount of Income tax (Net of Deferred Tax) of Rs. 158.11 Lacs for the current Year and of Rs. 2,499.12 lacs for the earlier years since FY 2007-08 (both - include the amount of tax applicable on the share of profit of Joint Venture Business claiming such deduction) has been disclosed as a contingent liability in note no. 27[J] to these Accounts.

3. In the opinion of the Management, the assets other than Fixed Assets and Non Current Investments have a realisable value, in the ordinary course of business, approximately of the amount at which they are stated in these financial statements. Balances of parties are subject to confirmation.

4. Retirement Benefits

a. Defined Contribution Plan

The Company makes contribution towards provident fund and superannuation fund to defined contribution retirement plans for qualifying employees. The provident fund plan is operated by the regional provident fund commissioner and the superannuation fund is administered by the LIC. Under the schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement contribution schemes to fund benefits.

The Company recognised Rs. 643.64 lacs (P.Y. Rs. 586.11 lacs ) for Provident Fund contributions and Rs. 111.85 Lacs (P.Y. Rs. 149.18 lacs ) for Superannuation contributions in the Statement of Profit & Loss. The contribution payable to these plans by the Company are at rates specified in the rules.

b. Defined Benefit Plan

The Company makes annual contributions to the employee''s Group Gratuity Cash Accumulation Scheme of the Life Insurance Corporation of India and SBI Life Insurance, a funded benefit plan for qualifying employees. The scheme provides for lump sum payment to vested employees at retirement, upon death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

The present value of the defined benefit obligation and the related current service cost are measured using the projected unit credit method as per actuarial valuation carried out at balance sheet date.

5. Segmental Reporting

The Company recognizes construction as the only business segment, hence there are no reportable segments under AS - 17.

6. Micro & Small Enterprises

The disclosure in respect of the amount payable to enterprises which have provided goods and services to the Company and which qualify under the definition of micro and small enterprises, as defined under Micro, Small and Medium Enterprises Development Act, 2006 has been made in the Financial statement as at 31st March, 2014 based on the information received and available with the Company. On the basis of such information, credit balance of such enterprises is NIL as at 31st March, 2014. Auditors have relied upon the information provided by the Company.

7. The Management is of the opinion that as on the Balance Sheet date, there are no indications of a material impairment loss on Fixed Assets, hence the need to provide for impairment loss does not arise.

8. The financials of foreign operations of overseas branch at Ethiopia have been incorporated on the basis of financial statements audited locally at Ethiopia.

9. Previous Year figures have been regrouped and / or rearranged wherever considered necessary.


Mar 31, 2013

1 The Finance Act (2), 2009 has amended Section 80-IA (4) of the Income Tax Act, 1961 by substituting an explanation to Section 80-IA with retrospective effect from 01-04-2000. On the basis of the legal opinion of the experts and decided cases, the Company has continued to claim deduction under Section 80-IA (4) of the Act on eligible projects and consequently the Company considers it appropriate not to create a liability for provision of Income Tax. However, an amount of Income tax (Net of Deferred Tax) of Rs. 430.48 lacs for the current Year and of Rs. 2,068.64 lacs for the earlier years since FY 2006-07 (both - include the amount of tax applicable on the share of profit of Joint Venture Business claiming such deduction) has been disclosed as a contingent liability in note no. 27[K] to these Accounts.

2 In the opinion of the Management, the assets other than Fixed Assets and Non Current Investments have a realisable value, in the ordinary course of business, approximately of the amount at which they are stated in these financial statements.

3 Lease Transactions

The Company''s significant leasing / licensing arrangements are mainly in respect of residential / office premises and equipments (operating lease). Lease agreements in respect of residential / office premises and certain equipments are cancelable and renewable by mutual consent on mutually agreed terms. Certain equipments are on non-cancellable operating lease. The aggregate lease rental / hire charges payable on these premises / equipments are charged as rent & hire charges amounting to Rs. 2,591.26 lacs. (P.Y. Rs.2,442.05 lacs.). Future estimated minimum lease rentals and their present values in respect of non-cancelable operating leases are as under.

4 Retirement Benefits

a. Defined Contribution Plan

The Company makes contribution towards provident fund and superannuation fund to defined contribution retirement plans for qualifying employees. The provident fund plan is operated by the regional provident fund commissioner and the superannuation fund is administered by the LIC. Under the schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement contribution schemes to fund benefits.

The Company recognised Rs. 586.11 lacs (P.Y. Rs. 572.25 lacs) for Provident Fund contributions and Rs. 149.18 lacs (P.Y. Rs.131.26 lacs) for Superannuation contributions in the Statement of Profit & Loss. The contribution payable to these plans by the Company are at rates specified in the rules.

b. Defined Benefit Plan

The Company makes annual contributions to the employee''s Group Gratuity Cash Accumulation Scheme of the Life Insurance Corporation of India and SBI Life Insurance, a funded benefit plan for qualifying employees. The scheme provides for lump sum payment to vested employees at retirement, upon death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months.Vesting occurs upon completion of five years of service.

The present value of the defined benefit obligation and the related current service cost are measured using the projected unit credit method as per actuarial valuation carried out at balance sheet date.

The following table sets out the funded status of the gratuity plan and the amount recognised in the company''s financial statements as at 31st March, 2013.

5 Segmental Reporting

The Company recognizes construction as the only business segment, hence there are no reportable segments under AS - 17.

6 Joint Ventures

I The Company is having consortium Joint Ventures named JMC-Associated JV JMC-Taher Ali JV (Package I, II & III), JMC- PPPL JV, JMC ATEPL JV, JMC - GPT- Vijaywargi - Bright Power JV, JMC- Vijaywargi - Bright Power JV, KPTL - JMC - Yadav JV and JMC - GPT JV under work sharing arrangement. The revenue for work done is accounted, in accordance with the accounting policy followed by the Company, as that of independent contract to the extent work is executed.

II In respect of contracts executed in Joint Venture entities, the services rendered to the Joint Venture entities are accounted as revenue for the work done. The share of profit / loss in Joint Venture entities other than Joint Venture Company has been accounted for and the same is reflected as investments or current liabilities in books of the Company.

7 Employees Stock Option

The Company has provided share-based payment plan to its employees for the year ended 31st March, 2013. The Company has followed Intrinsic Value Method and has given accounting treatment as per Guidelines issued by Securities & Exchange Board of India. The details are as follows:

8 Micro & Small Enterprises

The disclosure in respect of the amount payable to enterprises which have provided goods and services to the Company and which qualify under the definition of micro and small enterprises, as defined under Micro, Small and Medium Enterprises Development Act, 2006 has been made in the Financial statement as at 31st March, 2013 based on the information received and available with the Company. On the basis of such information, credit balance of such enterprises is NIL as at 31st March, 2013. Auditors have relied upon the information provided by the Company.

9 Compliance of Clause 32 of Listing Agreement

The Company has given loan to JMC Infrastructure Ltd., an Enterprise under significant influence of Key Managerial Personnel (EKMP), having no repayment schedule and outstanding balance is Rs.18.35 Lacs (P.Y. Rs. 30.50 lacs). The maximum outstanding balance during the year was Rs. 30.50 lacs.

10 The Management is of the opinion that as on the Balance Sheet date, there are no indications of a material impairment loss on Fixed Assets, hence the need to provide for impairment loss does not arise.

11 Previous Year figures have been regrouped and / or rearranged wherever considered necessary.


Mar 31, 2012

A. Terms / Rights attached to Equity Shares

The Company has only one class of Equity Shares having par value of Rs 10/- per share. Each holder of Equity Shares is entitled to one vote per share. The dividend is declared and paid on being proposed by the Board of Directors after the approval of the Shareholders in the ensuing Annual General Meeting.

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 liabilities. The distribution will be in proportion to the number of Equity Shares held by the shareholders.

b. Shares reserved for issue under options

The Company has reserved issuance of 1,000,000 (1,000,000) Equity Shares of Rs 10/- each for offering to the eligible employees of the Company under Employee Stock Option Plan (ESOP). On 21st July 2007, the Company granted 600,000 Options to the eligible employees at a price of Rs 217/- each, and these Options would vest over the period of 4 years from the date of grant based on specified criteria. (Refer Note No.42)

NOTE - 1.1

Accrued value of work done of Rs 17,940.72 lacs represents work done pending for clients' certification. [Net of provision for inclusive taxes and advance received totaling to Rs 3,187.96 lacs (P.Y. Rs 50.94 lacs.) against such accrued value of work done.]

2 Contingent Liabilities in respect of :

( Rs in Lacs )

Particulars 2011-12 2010-11

A. Bank Guarantees 98.79 478.29

B. Guarantee given to a bank in respect of financial assistance in favour of Subsidiary 40.00 40.00 Company.

C. Guarantees given in respect of performance of contracts of Joint Venture Entities & Associates in which Company is one of the member/holder of substantial equity. 20,107.30 23,609,82

D. Claims against the Company not acknowledged as debts. (Refer note below) 1,047.97 2,230.17

E. Show Cause Notice Issued by Service Tax / Excise Dept. 2,805.19 2,603.43

F. Disputed Royalty Demand under Tamilnadu Minor Mineral Concession Rules in appeal 426.90 426.90 before High Court

G. Disputed Income Tax Demand in appeal before Appellate Authorities (Excludes Amount considered in [I] hereinafter). 580.51 653.76

H. Disputed VAT Demand in appeal before Appellate Authorities 1,438.79 172.43

I. Income Tax (Net of Deferred Tax) on the claim made of the deductions u/s. 80-IA (4) of the Income Tax Act, 1961. (Refer note 29) 2,068.64 1,191.50

Note : In case where Company has raised the claims on clients against which counter claims have been raised by clients, the excess of counter claims raised by client over the amount of its claims only are considered in the above figures.

3 The Finance Act (2), 2009 has amended section 80-IA (4) of the Income Tax Act, 1961 by substituting an explanation to section 80- IA with retrospective effect from 01-04-2000. On the basis of the legal opinion of the experts and decided cases, the Company has continued to claim deduction under section 80-IA (4) of the Act on eligible projects and consequently the Company considers it appropriate not to create a liability for provision of Income Tax. However, an amount of Income tax (Net of Deferred Tax) of Rs 877.14 Lacs for the current year and of Rs 1,191.50 Lacs for the earlier years since FY 2006-07 (both - include the amount of tax applicable on the share of profit of Joint Venture Business claiming such deduction) has been disclosed as a contingent liability in note no. 28[I] to these Accounts.

4 In the opinion of the Management, the assets other than Fixed Assets and Non Current Investments have a realizable value, in the ordinary course of business, approximately of the amount at which they are stated in these financial statements.

5 Lease Transactions

The Company's significant leasing / licensing arrangements are mainly in respect of residential / office premises and equipments (operating lease). Lease agreements in respect of residential / office premises and certain equipments are cancelable and renewable by mutual consent on mutually agreed terms. Certain equipments are on non-cancelable operating lease. The aggregate lease rental / hire charges payable on these premises / equipments are charged as rent & hire charges amounting to Rs 2,442.05 lacs. (P.Y. Rs 1, 451.51 lacs). Future estimated minimum lease rentals and their present values in respect of non-cancelable operating leases are as under.

6. Retirement Benefits

a. Defined Contribution Plan

The Company makes contribution towards provident fund and superannuation fund to defined contribution retirement plans for qualifying employees.The provident fund plan is operated by the regional provident fund commissioner and the superannuation fund is administered by the LIC. Under the schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement contribution schemes to fund benefits.

The Company recognised Rs 572.25 Lacs (P.Y. Rs 483.64 Lacs) for Provident Fund contributions and Rs 131.26 Lacs (P.Y. Rs 120.53 Lacs) for Superannuation contributions in the Statement of Profit & Loss. The contribution payable to these plans by the Company are at rates specified in the rules.

b. Defined Benefit Plan

The Company makes annual contributions to the employee's Group Gratuity Cash Accumulation Scheme of the Life Insurance Corporation of India and SBI Life Insurance, a funded benefit plan for qualifying employees. The scheme provides for lump sum payment to vested employees at retirement, upon death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

The present value of the defined benefit obligation and the related current service cost are measured using the projected unit credit method as per actuarial valuation carried out at balance sheet date.

The following table sets out the funded status of the gratuity plan and the amount recognised in the Company's financial statements as at 31st March 2012.

7 Segmental Reporting

The Company recognizes construction as the only business segment, hence there are no reportable segments under AS - 17.

8 Joint Ventures

I The Company is having consortium Joint Ventures named JMC-Associated JV, JMC-Taher Ali JV (Package I, II & III), JMC- PPPL JV, JMC ATEPL JV, JMC-Tantia JV, JMC-MSKE JV GIL - JMC JV JMC - GPT- Vijaywargi-Bright Power JV JMC- Vijaywargi-Bright Power JV KPTL- JMC-Yadav JV and JMC - GPT JV under work sharing arrangement. The revenue for work done is accounted, in accordance with the accounting policy followed by the Company, as that of independent contract to the extent work is executed.

II In respect of contracts executed in Joint Venture entities, the services rendered to the Joint Venture entities are accounted as revenue for the work done. The share of profit / loss in Joint Venture entities other than Joint Venture Company has been accounted for and the same is reflected as investments or current liabilities in books of the Company.

9. Micro & Small Enterprises

The disclosure in respect of the amount payable to enterprises which have provided goods and services to the Company and which qualify under the definition of micro and small enterprises, as defined under Micro, Small and Medium Enterprises Development Act, 2006 has been made in the Financial statement as at 31st March 2012 based on the information received and available with the Company. On the basis of such information, credit balance of such enterprises is NIL as at 31st March 2012. Auditors have relied upon the information provided by the Company.

10. Compliance of Clause 32 of Listing Agreement

The Company has given loan to JMC Infrastructure Ltd., an Enterprise under significant influence of Key Managerial Personnel (EKMP), having no repayment schedule and outstanding balance is Rs 30.50 Lacs (P.Y. Rs 40.70 Lacs ). The maximum outstanding balance during the year was Rs 40.70 Lacs.

11. The Management is of the opinion that as on the Balance Sheet date, there are no indications of a material impairment loss on Fixed Assets, hence the need to provide for impairment loss does not arise.

12. During the year ended 31st March 2012, the revised Schedule VI notified under the Companies Act, 1956, has become applicable to the Company, for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirement applicable in the current year.


Mar 31, 2010

1 Contingent Liabilities in respect of:

Particulars AS AT 31/03/2010 AS AT 31/03/2009 Rs.in Lacs Rs.in Lacs

A.Bank Guarantees 489.51 63.54

B.Guarantees given in respect of financial assistance & performance in 151.07 151.07 favour of Subsidiary Company to a bank &others.

C.Guarantees given in respect of performance of contracts of Joint Venture 13,667.52 14,219.07 entities in which Company is one of the member.

D.Claims against the Company not acknowledged as debts. (Refer note below) 2,178.61 1,595.56

E.Show cause Notice Issued by Service Tax Dept. 2,478.14 709.50

F Disputed Royalty Demand under Tamilnadu Minor Mineral Concession 426.90 426.90 Rules in appeal before High Court

G.Disputed Income Tax demand in appeal before Appellate Authorities 213.56 48.50

H.Disputed VAT demand in appeal before Tribunal and High Court 1,690.00 868.65

I.Income Tax (Net of deferred tax)on the claim made of deduction u/s80-IA(4)of the Income 785.03 365.85 Tax Act,1961.

2.Lease Transactions

The Companys significant leasing /licensing arrangements are mainly in respect of residential /office premises and equipments (operating lease).These are cancelable and renewable by mutual consent on mutually agreed terms.The aggregate lease rental /hire charges payable on these leasing arrangements are charged as rent &hire charges amounting to Rs.1,084.10 Lacs. (Rs.907.70 Lacs.)

3.Segmental Reporting

The Company recognizes construction as the only business segment,hence there are no reportable segments under AS -17.

4.Quantitative Particulars

As the production in plant formanufacturing of RCC pipes isbeing captively used by the Company in its only activity of construction and since the Company is engaged in construction activity,the provisions of Para 3 of Part II of Schedule VI of the Companies Act, 1956 regarding quantitative details,are not applicable. Quantitative particulars in relation to sales and purchase of materials are not provided,as the same material components are normally consumed in all construction contracts and are having different units of measurments and not material in nature.

5.JointVentures

(I)The Company is having consortium Joint Ventures named JMC-Associated JV,JMC-TantiaJV,JMC-Taher AllJV,JMC-PPPL JV,JMC-MSKE JV,GIL-JMC JV under work sharing arrangement.The revenue forwork done is accounted in accordance with the accounting policy followed by the Company as that of independent contract to the extent work is executed.

(II)In respect of contracts executed in Joint Venture entities,the services rendered to the Joint Venture entities are accounted as revenue for the work done.The share of profit /loss in Joint Venture entities has been accounted for and the same is reflected as investments or current liabilities in books of the Company.

6 The Finance Act (2),2009 has amended section 80-IA (4)of the Income Tax Act,1961 by substituting an explanation to section 80-IA with retrospective effect from 01-04-2000.On the basis of the legal opinion of the experts,the Company has continued to claim deduction under section 80-IA (4)of the Act on eligible projects and consequently the Company considers it appropriate not to create a liability by making provision for Income Tax (Net of Deferred Tax).However,an amount of Income Tax (Net of Deferred Tax)of Rs.419.18 Lacs for the current year and of Rs.365.85 Lacs for the earlier years since FY 2006-07 (both including the amount of tax applicable on the share of profit of Joint Venture Business claiming such deduction)has been disclosed as a contingent liability in note no.2 to these Accounts.

7 In the opinion of the Management,the balances shown under sundry debtors and loans &advances have approximately the same realisable value as shown in accounts.

8 The Management is of the opinion that as on the Balance sheet date,there are no indications of a material impairment loss on Fixed Assets,hence the need to provide for impairment loss does not arise.

9 Retirement Benefits

a Defined Contribution Plan

The Company made contribution towards provident fund and superannuation fund to defined contribution retirement plans for qualifying employees.As the provident fund plan is operated by the regional provident fund commissioner and the superannuation fund is administered by the LIC Under the schemes,the Company is required to contribute a specified percentage of payroll cost to the retirement contribution schemes to fund benefits.

The Company recognised Rs.489.51 Lacs (Rs.444.90 Lacs)for provident fund contributions and Rs.76.17 Lacs (Rs.70.50 Lacs) for Superannuation contributions in the Profit &Loss account.The contribution payable to these plans by the Company are at rates specified in the rules of the scheme.

b Defined Benefit Plan

The Company made annual contributions to the employees Group Gratuity Cash Accumulation Scheme of the Life Insurance Corporation of India and SBI Life Insurance,a funded benefit plan for qualifying employees.The scheme provides for lump sum payment to vested employees at retirement,upon death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months.Vesting occurs upon completion of five years of service.

The present value of the defined benefit obligation and the related current service cost are measured using the projected unit credit method as per actuarial valuation carried out at balance sheet date. The following table sets out the funded status of the gratuity plan and the amount recognised in the Companys financial statements as at 31st March,2010.

10 Micro &Small Enterprises

The disclosure in respect of the amount payable to enterprises which have provided goods and services to the Company and which qualify under the definition of micro and small enterprises,as defined under Micro,Small and Medium Enterprises Development Act,2006 has been made in the Financial statement as at 31st March,2010 based on the information received and available with the Company.On the basis of such information,credit balance of such enterprises is NIL as at 31st March,2010.Auditors have relied upon the information provided by the Company.

11 Compliance of Clause 32 of Listing Agreement

The Company has given loan to JMC Infrastructure Ltd.,Enterprise under significant influence of Key Managerial Personnel (EKMP),having no repayment schedule and outstanding balance is Rs.84.44 Lacs (Rs.120.50 Lacs ).The maximum outstanding balance during the year was Rs.120.50 Lacs.

12 At the beginning of the year 12,50,000 Non Cumulative Redeemable Preference Shares (NCPS)of Rs.2027-each fully paid up were outstanding.The said NCPS have been redeemed on October 3,2009 from the proceeds of issue of 36,28,058 Equity Shares of Rs.107-each at a premium of Rs.1007-per share on a Right basis.

13 Previous Year figures have been regrouped and/or rearranged wherever considered necessary.

 
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