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Notes to Accounts of JMC Projects (India) Ltd.

Mar 31, 2016

b. Terms / Rights attached to Equity Shares :

The Company has only one class of Equity Shares having par value of '' 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.

c. Shares held by Holding Company and its Subsidiaries / Associates :

Out of Equity Shares issued by the Company, the Shares held by Holding and its Subsidiaries / Associates are as below :

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

First charge on movable fixed assets of the Company to the extent NCDs are repaid in full. of 1.25 times of the amount of NCDs in pari-passu with a Bank in (b)

(2) (I) (ii), and first charge by mortgage of a land at Maharajpura,

Kadi, Gujarat.

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

External Commercial Borrowing of US $ 23.08 lacs (P.Y. US $ FCL is repayable in balance 3 equal quarterly installments of US 53.85 lacs) is secured by first charge on specific movable fixed $ 769,230.77 each and carry interest @ 6 months LIBOR plus assets financed by them. spread.

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

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

Term Loan from a consortium Bank amounting to Rs, 1,093.75 lacs Term Loan is repayable in balance 7 equal quarterly installments (P.Y. Rs, 1,717.56 lacs) is secured by first and exclusive charge over of Rs, 156.25 lacs each with varying interest rate linked to base rate the fixed assets financed by them. of Bank from time to time.

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

Term Loan from a Bank amounting to Rs, 2,843.75 lacs (P.Y. Term Loan is repayable in balance 7 equal quarterly installments Rs, 4,468.75 lacs) is secured by first charge on movable fixed assets with varying interest rate linked to base rate of Bank from time

excluding assets charged exclusively to term lender in b (1), b (2) to time.

(I) (i), b (2)(I)(iii), b (2)(I)(iv) and b (2) (II)(i) and in pari-passu with a lender in (b) (2) (II) (iii).

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

Term Loan from a Bank amounting to Rs, 3,900.00 lacs (P.Y. Term Loan is repayable in balance 23 unequal quarterly Rs, 4,000.00 lacs) is secured exclusively by first charge on movable installments with varying interest rate linked to base rate of Bank fixed assets funded out of the said facility. from time to time.

(b) (2) (I) (iv)

Term Loan from a Bank amounting to Rs, 850.00 lacs (P.Y. Rs, Nil) is Term Loan is repayable in 12 equal quarterly installments secured exclusively by first charge on movable fixed assets funded commencing from July 09, 2016 with varying interest rate linked out of the said facility. to base rate of Bank from time to time.

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

(b) (2) (II) (i)

Term Loan from NBFC amounting to Rs, 1,056.95 lacs (P.Y. Term Loan is repayable in balance 36 months through quarterly Rs, 1,523.68 lacs) is secured by first and exclusive charge by way of installments commencing from the end of 180 days from the date hypothecation for equipments financed by them. of first disbursement, i.e. October 18, 2013 with interest payable monthly at varying interest rate linked to base rate of NBFC from time to time.

(b) (2) (II) (ii)

Term Loan from NBFC amounting to Rs, 8,750.00 lacs (P.Y. Term Loan is repayable in balance 7 equal quarterly installments Rs, 10,000.00 lacs) is secured by subservient charge over the entire with interest payable monthly at varying interest rate linked to base movable tangible assets of the company and further guaranteed by rate of Bank from time to time and further there is a Put Option the Holding Company. at the end of 12 months from the date of first disbursement and every year thereafter.

(b) (2) (II) (iii)

Term Loan from NBFC amounting to Rs, 7,750.00 lacs (P.Y. Rs, Nil) is Term Loan is repayable in 18 unequal quarterly installments to be secured by first pari passu charge on entire movable fixed assets paid at the end of each financial quarter, commencing from 3rd excluding assets charged exclusively to the Term Lenders in b(1), quarter from the date of disbursement and interest payable on b(2)(I)(i), b(2)(I)(iii),b(2)(I)(iv) and b(2)(II)(i) and in pari-passu with a monthly basis at varying interest rate linked to base rate of Bank lender in b(2)(I)(ii). from time to time.

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

Loans of Rs, 203.74 lacs (P.Y. Rs, 129.02 lacs) are secured by way of 60 monthly installments beginning from the month subsequent charge on specific equipments and vehicles financed by them on to disbursement. different loans.

B. Unsecured Loans :

(1) Fixed Deposits from public of Rs, Nil (P.Y. Rs, 1,016.31 lacs) Fixed deposits are repaid in full.

(2) Term Loan from a Bank amounting to Rs, 12,175 lacs (P.Y. Term Loan is repayable in balance 23 unequal quarterly installments Rs, 13,000 lacs). every year, 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.

(1) The carrying amount of the gross block and accumulated depreciation thereon pertaining to the Company''s non-integral foreign operations have been restated at closing exchange rates of the foreign currency and the resultant effect of Rs, 27.90 lacs (P.Y. Rs, -12.36 lacs) and of Rs, 4.72 lacs (P.Y. Rs, -0.43 lacs) have been increased / (reduced) in additions and depreciation for the year respectively.

(2) The Company had in F.Y. 2014-15 adjusted an amount of Rs, 996.10 lacs pertaining to assets, pursuant to the transition provision prescribed in Schedule II to the Companies Act, 2013, whose useful life had exhausted and after adjustment of Rs, 338.57 lacs for deferred tax balance, i.e. Rs, 657.53 lacs was adjusted against the opening Surplus balance in General Reserve in previous year. The Transition provision is not applicable for F.Y. 201 5-16.

1 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.

2 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 were on non-cancellable operating lease up to July 14, 2015. The aggregate lease rental / hire charges payable on these premises / equipments are charged as rent & hire charges amounting to Rs, 2,174.28 lacs (P.Y. Rs, 2,773.50 lacs).

3 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, 821.03 lacs (P.Y. Rs, 749.79 lacs) for Provident Fund contributions and Rs, 70.61 lacs (P.Y. Rs, 84.04 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 has obtained towards gratuity fund defined benefit retirement plan covering eligible employee. 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, 2016.

4 Related Party Disclosure as per Accounting Standard (AS) 18

Kalpataru Power Transmission Ltd. Holding Company

Subsidiary, Fellow Subsidiary Companies

JMC Mining and Quarries Ltd. Subsidiary Company

Brij Bhoomi Expressway Pvt. Ltd. Subsidiary Company

Wainganga Expressway Pvt. Ltd. Subsidiary Company

Vindhyachal Expressway Pvt. Ltd. Subsidiary Company

Energylink (India) Ltd. Subsidiary of Holding Company

Shree Shubham Logistics Ltd. Subsidiary of Holding Company

Amber Real Estate Ltd. Subsidiary of Holding Company

Adeshwar Infrabuild Ltd. Subsidiary of Holding Company

Kalpataru Power Transmission Nigeria Ltd. Subsidiary of Holding Company

Kalpataru Power Transmission (Mauritius) Ltd. Subsidiary of Holding Company

Kalpataru SA (Proprietary) Ltd. Subsidiary of Holding Company

Kalpataru Power Transmission - USA, INC. Subsidiary of Holding Company

Alipurduar Transmission Limited Subsidiary of Holding Company

LLC Kalpataru Power Transmission Ukraine Subsidiary of Holding Company

Kalpataru Power DMCC, UAE Subsidiary of Holding Company

Saicharan Properties Ltd. Subsidiary of Holding Company

Kalpataru Metfab Private Limited Subsidiary of Holding Company

Kalpataru Satpura Transco Pvt. Ltd. Subsidiary of Holding Company

Punarvasu Holding and Trading Co. Pvt. Ltd. Subsidiary of Holding Company

Kalpataru IBN Omairah Company Limited Subsidiary of Holding Company

Joint Ventures

JMC - Associated JV Joint Venture

Aggrawal - JMC JV Joint Venture

JMC - Sadbhav JV Joint Venture

JMC - Taher Ali JV (Package I, II & III) Joint Venture

JMC - PPPL JV Joint Venture

Kurukshetra Expressway Pvt. Ltd. Joint Venture

KPTL - JMC - Yadav JV Joint Venture

JMC - GPT JV Joint Venture

JMC - CHEC JV Joint Venture

JMC - KPTL - STS JV Joint Venture

Key Managerial Personnel (KMP) Nature of Relationship

Mr. Shailendra Tripathi CEO & Dy. Managing Director

Mr. Manoj Kumar Singh (till 13.10.2015) Executive Director

Enterprises over which significant influence exercised with whom

company has transactions (EUSI) Nature of Relationship

Kalpataru Limited Significant influence of Promoters

Kalpataru Properties Pvt. Ltd. Significant influence of Promoters

Kiyana Ventures LLP Significant influence of Promoters

Neo Pharma Private Limited Significant influence of Promoters

Agile Real Estate Pvt. Ltd. Significant influence of Promoters

Kalpataru Retail Ventures Private Limited Significant influence of Promoters

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 - KPTL - STS 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, 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. 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 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, 2016 based on the information received and available with the Company. On the basis of such information, credit balance as at March 31, 2016 of such enterprises is Rs, 108.71 lacs (P.Y. Rs, 42.51 lacs). There are no dues on account of interest. Auditors have relied upon the information provided by the Company.

8 Information as required under Regulation 34 of SEBI ( Listing Obligations and Disclosure Requirements ), Regulation, 2015, with regard to Loans to Subsidiaries which are without interest and having no repayment schedule are as under:

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

(b) Unheeded Foreign Currency exposure outstanding are as under :

The foreign currency exposure that is not hedged by derivative instruments amounts to Rs, 5,890.85 lacs (P.Y. Rs, 1,900.64 lacs).

10. On February 12, 2016, the Company has allotted 74,62,686 equity shares of Rs, 10/- each at a price of Rs, 201/- per share (incl. premium of Rs, 191/- per share) aggregating to Rs, 15,000 lacs. The Company has fully utilized the issue proceeds during the year as under :

* Share issue expenses have been adjusted against the Securities Premium in Reserves & Surplus

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


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, 2011

1 Contingent Liabilities in respect of : (Rs. in Lacs)

PARTICULARS AS AT AS AT

31/03/2011 31/03/2010

A. Bank Guarantees 478.29 489.51

B. Guarantees given to a bank & others in respect of fnancial assistance & 40.00 151.07 performance in favour of Subsidiary company.

c. Guarantees given in respect of performance of contracts of Joint Venture entities 23,609.82 13,667.52 & Associates in which Company is one of the member/holder ofsubstantial equity.

D. Claims against the Company not acknowledged as debts. (Refer Note below) 2,230.17 2,178.61

E. Show Cause Notice Issued by Service Tax Department. 2,603.43 2,478.14

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

G. Disputed Income Tax Demand in appeal before Appellate Authorities (Excludes 653.76 213.56 Amount considered in [I] hereinafter).

H. Disputed VAT Demand in appeal before Tribunal and High Court. 172.43 1,690.00

I. Income Tax (Net of Deferred Tax) on the claim made of the deductions u/s. 80-IA 1,216.22 785.03

(4) of the Income Tax Act, 1961.(Refer Note 16).

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 claims are only considered in the above fgures.

8 Related Party Disclosure

Kalpataru Power Transmission Ltd. Holding Company

Subsidiary and Fellow Subsidiary Companies

JMC Mining and Quarries Ltd. Subsidiary company

Brij Bhoomi Expressway Pvt. Ltd. Subsidiary company

Energylink (India) Ltd. Subsidiary of Holding Company

Shree Shubham Logistics Ltd. Subsidiary of Holding Company

Amber Real Estate Ltd. Subsidiary of Holding Company

Adeshwar Infrabuild Ltd. Subsidiary of Holding Company

Kalpataru Power Transmission Nigeria Ltd. Subsidiary of Holding Company

Kalpataru Power Transmission (Mauritius) Ltd. Subsidiary of Holding Company

Kalpataru SA (Proprietary) Ltd. Subsidiary of Holding Company

Kalpataru Power Transmission – USA, INC. Subsidiary of Holding Company

Kalpataru Metfab Pvt. Ltd. Subsidiary of Holding Company

Saicharan Properties Ltd. Subsidiary of Holding Company

Jhajjar Power Transmission Pvt. Ltd. Subsidiary of Holding Company

Joint Ventures

JMC - Associated JV Joint Venture

Aggrawal - JMC JV Joint Venture

JMC - Sadbhav JV Joint Venture

JMC - Taher Ali JV (Package I, II & III) Joint Venture

JMC - PPPL JV Joint Venture

JMC - ATEPL JV Joint Venture

JMC - Tantia JV Joint Venture

JMC - MSKE JV Joint Venture

GIL - JMC JV Joint Venture

Kurukshetra Expressway Pvt. Ltd. Joint Venture

Key Managerial Personnel (KMP) Nature of Relationship

Mr. Hemant Modi Vice Chairman & Managing Director

Mr. Suhas Joshi Managing Director

Relatives of Key Managerial Personnel (RKMP) Nature of Relationship

Mrs. Suverna I. Modi Relative of key Managerial Personnel

Mrs. Sonal H. Modi Relative of key Managerial Personnel

Ms. Ami H. Modi Relative of key Managerial Personnel

Enterprises over which signifcant infuence exercised by Nature of Relationship Key Managerial Personnel (EKMP)

JMc Infrastructure Ltd. Signifcant Infuence of Mr. Hemant Modi & Mr. Suhas Joshi

SAI consulting Engineers Private Ltd. Signifcant Infuence of Mr. Hemant Modi

11. Segmental Reporting

The company recognizes construction as the only business segment, hence there are no reportable segments under Accounting Standard - 17.

12 . Quantitative Particulars

As the production in plant for manufacturing of Rcc pipes is being 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 measurements and not material in nature.

13 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 and GIL - JMC 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 refected as investments or current liabilities in books of the Company.

16 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. 431.19 Lacs for the current year and of Rs. 785.03 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. 2[I] to these Accounts.

17 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.

18 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.

19 Retirement Benefts

a. Defned Contribution Plan

The company made contribution towards provident fund and superannuation fund to defned 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 Life Insurance corporation of India. Under the schemes, the company is required to contribute a specifed percentage of payroll cost to the retirement contribution schemes to fund benefts.

The Company recognised Rs. 636.35 Lacs (Rs. 489.51 Lacs) for Provident Fund contributions and Rs. 120.53 Lacs (Rs. 76.17 Lacs) for Superannuation contributions in the Profit & Loss account. The contribution payable to these plans by the Company are at rates specifed in the rules.

b. Defned Beneft 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 beneft 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 defned beneft 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 fnancial statements as at 31 st March, 2011.

20 Employee Stock Option

The company has provided share-based payment plan to its employees for the year ended 31st March, 2011. 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:

Name of the Scheme ESOP -2007

Date of Grant 21st July 2007

Number of options granted 6,00,000

Method of Settlement (Cash / Equity) Equity

Vesting Period 4 Years

Vesting Conditions

Exercise Period Within 4 Years from the date of vesting

Grant Price Rs. 217/- per Option

Method of Accounting Intrinsic Value Method

21 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 defnition of micro and small enterprises, as defned under Micro, Small and Medium Enterprises Development Act, 2006 has been made in the Financial statement as at 31st March, 2011 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, 2011. Auditors have relied upon the information provided by the company.

22 compliance of clause 32 of Listing Agreement

The Company has given loan to JMC Infrastructure Ltd., Enterprise under Signifcant Infuence of Key Managerial Personnel (EKMP), having no repayment schedule and outstanding balance is Rs. 40.70 Lacs (Rs. 83.56 Lacs). The maximum outstanding balance during the year was Rs. 83.56 Lacs.

23 The Company has made an allotment of 43,50,000 Equity Shares of Rs. 10/- each at a premium of Rs.197/- each on November 20, 2010 on Preferential basis to the Holding Company M/s. Kalpataru Power Transmission Ltd. and raised Rs. 9,004.50 Lacs for the purpose of investment in DBFOT projects and capital expenditure. The company has utilized Rs. 4,949.79 Lacs towards investment in DBFOT projects. Out of the balance unutilized amount, sum of Rs. 3,000 Lacs is temporarily invested in Mutual Fund and balance for reduction in working capital.

25 Out of the Investment in Kurukshetra Expressway Pvt. Ltd., 4,900 Equity Shares of Rs. 10/- each are pledged with a bank for fnancial assistance provided by them to Kurukshetra Expressway Pvt. Ltd.

26 Previous Year fgures have been regrouped and / or rearranged wherever considered necessary.


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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