Notes to Accounts of Jubilant Industries Ltd.

Mar 31, 2018

1. Corporate Information

Jubilant industries Limited (“the Company” or the “Parent Company”) is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Presently, the Company is engaged in the business of manufacturing of Indian-made foreign liquor. Its shares are listed on the BSE Limited and the National Stock Exchange of India Limited. The registered office of the Company is situated at Bharttiagram, Gajraula District Amroha-244 223.

These financial statements were authorised for issuance by the Board of Directors of the Company in their meeting held on May 10, 2018.

2.1 The Company has only one class of shares referred to as equity shares having par value of Rs. 10 each. Holder of each equity share is entitled to vote one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2.2 Details of shareholders holding more than 5% of the aggregate shares in the Company:

2.3 Aggregate number of shares issued for consideration other than cash:

Issued, subscribed and paid-up share capital includes 3,835,348 (31 March 2017: 3,835,348; 1 April 2016: 3,835,348) equity shares of Rs. 10 each allotted and issued pursuant to Scheme of arrangement with Jubilant Agri and Consumer Products Limited and Enpro Oil Private Limited during the FY 2011-12.

2.4 16,031 (31 March 201 7 : 28,470; 1 April, 2016: 37,196) equity shares, of Rs. 10 each allotted on exercise of the vested stock options in accordance with the terms of exercise under the “Employee Stock Option Scheme, 2013” (Refer note 38).

3.1 Expenditure related to corporate social responsibility as per Section 135 of the Companies Act, 2013, read with Schedule VII thereof: Rs. Nil (31 March 2017: Rs. Nil). There is no requirement of CSR specific for the year as there is no profits calculated under Section 198 of the Companies Act, 2013.

4. Income tax

The major components of income tax expense for the year ended 31 March 2018 and 31 March 2017 are:

5. Micro, small and medium enterprises

There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at the end of the year. The information as required to be disclosed in relation to Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company.

6. Employee benefits in respect of the Company have been calculated as under:

A. Defined Contribution Plans

The Company has certain defined contribution plan such as provident fund (1), employee state insurance, employee pension scheme, employee superannuation fund wherein specified percentage is contributed to them. During the year, the Company has contributed following amounts to:

(1) For certain employees where provident fund is deposited with government authority e.g. Regional Provident Fund Commissioner.

B. Defined Benefits Plans

i. Gratuity

In accordance with Ind AS 19 “Employee Benefits”, an actuarial valuation has been carried out in respect of gratuity. The discount rate assumed is 7.70% p.a. (31 March 201 7 : 7.37% p.a.; 1 April 2016: 7.90% p.a.) which is determined by reference to market yield at the Balance Sheet date on government bonds. The retirement age has been considered at 58 years (31 March 2017: 58 years; 1 April 2016: 58 years) and mortality table is as per IALM (2006-08) [31 March 2017: IALM (2006-08); 1 April 2016: IALM (2006-08)].

The estimates of future salary increases, considered in actuarial valuation is 9% p.a. for first three years and 5% p.a. thereafter (31 March 2017: 9% p.a. for first three years and 5% p.a. thereafter; 1 April 2016: 10% p.a. for first three years and 5% p.a. thereafter), taking into account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The sensitivity analysis above have been determined based on reasonable possible changes of the respective assumptions occurring at the end of the year and may not be representative of the actual change. It is based on a change in the key assumption while holding all other assumptions constant.

ii. Provident Fund:

The Company makes monthly contributions to provident fund managed by trust for qualifying employees. Under the scheme, the Company is required to contribute a specific percentage of the payroll costs to fund the benefits. As per Ind AS 19 on “Employee Benefits”, employer established provident fund trusts are treated as defined benefit plans, since the Company is obliged to meet interest shortfall, if any, with respect to covered employees. The total liability of Rs. Nil (31 March 2017: Rs. Nil; 1 April 2016: Rs. Nil) has been allocated to Company and Rs. Nil (31 March 2017: Rs. Nil) has been charged to Statement of Profit and Loss during the year.

Note:

(a) Fair valuation of financial assets and liabilities with short term maturities is considered as approximate to respective carrying amount due to the short term maturities of these instruments.

(b) The fair value is determined by using the valuation model/technique with observable/non-observable inputs and assumptions.

There are no transfers between Level 1, Level 2 and Level 3 during the years ended 31 March 2018 and 31 March 2017.

Reconciliation of Level 3 fair value measurement:

7. Financial risk management Risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework.

The Company, through three layers of defence namely policies and procedures, review mechanism and assurance aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations. The Audit committee of the Board with top management oversee the formulation and implementation of the risk management policies. The risk are identified at business unit level and mitigation plan are identified, deliberated and reviewed at appropriate forums.

The Company has exposure to the following risks arising from financial instruments:

- credit risk [see (i)];

- liquidity risk [see (ii)]; and

- market risk [see (iii)].

i. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counter-party to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers, loans and investments.

The carrying amount of financial assets represents the maximum credit exposure.

Trade receivables and other financial assets

The Company has established a credit policy under which new customer is analysed individually for creditworthiness before the payment and delivery terms and conditions are offered. The Company’s review includes external ratings, if they are available, financial statements, credit agency information, industry information and business intelligence. Sale limits are established for each customer and reviewed annually. Any sales exceeding those limits require approval from the appropriate authority as per policy.

In monitoring customer credit risk, customers are grouped according to their credit characteristics, including whether they are an individual or a legal entity, whether they are institutional, dealers or end-user customer, their geographic location, industry, trade history with the Company and existence of previous financial difficulties.

Expected credit loss for trade receivables:

Based on internal assessment which is driven by the historical experience/ current facts available in relation to default and delays in collection thereof, the credit risk for trade receivables is considered low. The Company estimates its allowance for trade receivable using lifetime expected credit loss. The balance past due for more than 6 months is Rs. 4.19 million (31 March 2017: Rs. 8.69 million; 1 April 2016: Rs. Nil).

Expected credit loss on financial assets other than trade receivables:

With regard to all financial assets with contractual cash flows, other than trade receivables, management believes these to be high quality assets with negligible credit risk. The management believes that the parties from which these financial assets are recoverable, have strong capacity to meet the obligations and where the risk of default is negligible and accordingly no provision for excepted loss has been provided on these financial assets. Break up of financial assets other than trade receivables have been disclosed on Balance Sheet.

ii. Liquidity risk

Liquidity risk is the risk that the will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

The Company’s treasury department is responsible for managing the short-term and long-term liquidity requirements. Short term liquidity situation is reviewed daily by the Treasury. Longer term liquidity position is reviewed on a regular basis by the Company’s Board of Directors and appropriate decisions are taken according to the situation.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and un-discounted, and include contractual interest payments and exclude the impact of netting agreements.

iii. Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Company’s income or the value of its holding of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

Currency risk

Foreign currency is the risk that the fair value of future cash flows of an exposure will flucate because of changes in foreign exchange rates. The Company has not foreign currency borrowing, foreign currency trade payable and trade receivable, therefore, no exposed to foreign currency risk.

Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to interest rate risk because funds are not borrowed.

8. Capital management Risk management

The Company’s objectives when managing capital are to:

- safeguarding their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

- maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

Consistent with others in the industry, the Company monitors capital on the basis of the following gearing ratio:

‘Net Debt’ (total borrowings net of cash and cash equivalents and other bank balances) divided by ‘Total EquityR’ (as shown in the Balance sheet).

9. Segment information

The Company’s operation comprises of IMFL business only. As such, there are no separate reportable business segments in terms of Ind AS-108 “Operating Segments”.

10. Related party disclosures

1. Subsidiaries:

Jubilant Agri And Consumer Products Limited, Jubilant Industries Inc., USA.

2. Key management personnel (KMP) and other related entities

Mr. Manu Ahuja* (CEO and Managing Director)(w.e.f. 10 May 2018), Mr. Videh Kumar Jaipuriar** (Managing Director) (up to 11 December 2017), Mr. Sandeep Kumar Shaw (Chief Financial Officer) (up to 28 April 2017), Mr. Umesh Sharma***, Mr. Dinesh Kumar Gupta (Company Secretary) (up to 18 December 2018), Mr. Abhishek Mishra (Company Secretary) (w.e.f. 16 March 2018), Mr. Priyavrat Bhartia (Chairman), Mr. Shamit Bhartia (Director), Mr. Ghanshyam Dass (Director) (up to 26 February 2018), Mr. R. Bupathy (Director), Mr. S.K. Roongta (Director), Ms Shivpriya Nanda (Director).

* He was appointed as CEO and Managing Director without remuneration w.e.f. May 10, 2018 for a period of three years and also serve and draw remuneration as CEO and Whole-time Director from Jubilant Agri and Consumer Products Limited, a wholly owned subsidiary of the Company.

** He was appointed as Managing Director without remuneration w.e.f. March 1, 2016 for a period of three years and also serving and drawing remuneration as Whole-time Director from Jubilant Agri and Consumer Products Limited, a wholly owned subsidiary of the Company.

*** Chief Financial Officer: Appointed w.e.f. 24 May 2017; Whole-time Director: Appointed w.e.f. 16 March 2018 and subsequently resigned w.e.f. 10 May 2018.

Jubilant Life Sciences Limited, HSSS Investment Holding Private Limited.

3. Others:

VAM Employees Provident Fund Trust, Jubilant Bhartia Foundation.

11. Contingent Liabilities & Commitments (to the extent not provided for)

A) Guarantees:

I The Company has given corporate guarantee on behalf of its wholly owned subsidiary, Jubilant Agri and Consumer Products Limited to secure financial facilities granted by banks, details for guarantees as at 31 March 2018 are as under:

a) To Axis Bank Ltd of Rs. 520 million (31 March 2017: Rs. 528.00 million; 01 April 2016: Rs. 528.00 million) for working capital facility (including non fund based facility) and effective guarantee is Rs. 250.10 million (31 March 2017: Rs. 225.24 million; 01 April 2016: Rs. 115.05 million).

b) To Yes Bank Ltd of Rs. 680.00 million (31 March 2017: Rs. 302.50 million; 01 April 2016: Rs. 302.50 million) for working capital facility (including non fund based facility) and effective guarantee is Rs. 79.24 million (31 March 2017: Rs. 167.48 million; 01 April 2016: Rs. 204.32 million).

c) To IDBI Bank Ltd of Rs. Nil (31 March 2017: Rs. 566.00 million; 01 April 2016: Rs. 566.00 million) for working capital facility (including non fund based facility) and effective guarantee is Rs. Nil (31 March 2017: Rs. 180.45 million; 01 April 2016: Rs. 291.07 million).

d) To Corporation Bank of Rs. 200.00 million (31 March 2017: Rs. 753.50.00 million; 01 April 2016: Rs. 753.50 million) for working capital facility (including non fund based facility) and effective guarantee is Rs. 90.09 million (31 March 2017: Rs. 294.55 million; 01 April 2016: Rs. 388.60 million).

e) To RBL Limited of Rs. 750.00 million (31 March 2017: Rs. Nil; 01 April 2016: Rs. Nil) for working capital facility (including non fund based facility) and effective guarantee is Rs. 372.83 million (31 March 2017: Rs. Nil; 01 April 2016: Rs. Nil).

f) To Axis Bank Limited of Rs. Nil (31 March 2017: Rs. 1500.00 million; 01 April 2016: Rs. 1500.00 million) for term loan facility and effective guarantee is Rs. Nil including interest (31 March 2017: Rs. 1476.91 million; 01 April 2016: Rs. 1515.48 million).

g) To RBL Limited of Rs. 1812.50 million (31 March 2017: Rs. Nil; 01 April 2016: Rs. Nil) for term loan facility and effective guarantee is Rs. 1782.50 million including interest (31 March 2017: Rs. Nil; 01 April 2016: Rs. Nil).

II Outstanding guarantees furnished by banks on behalf of the Company is Rs. Nil (31 March 2017: Rs. Nil; 01 April 2016: Rs. 0.50 million).

B) Claims against Company not acknowledged as debt*:

Claims/Demands in respect of which proceeding or appeals are pending and are not acknowledged as debts on account of:

12. Commitments as at year end

a) Capital Commitments:

Estimated amount of contracts remaining to be executed on capital account (net of advances) Rs. Nil (31 March 2017: Rs. Nil; 1 April 2016: Rs. Nil) [Advances Rs. Nil (31 March 2017: Rs. Nil; 1 April 2016: Rs. Nil)].

b) Leases

i) The Company’s significant operating lease arrangements are in respect of premises (residential, offices, godowns, vehicles etc.). These leasing arrangements, which are cancellable, range between 11 months and 3 years generally and are usually renewable by mutual agreeable terms. The aggregate lease rentals have been charged as expenses.

ii) The Company has operating lease arrangements in respect of vehicles which are cancellable, range between 2 years and 5 years. The aggregate lease rentals payable are charged as expenses. Rental expenses recognized under such leases amounting to Rs. 0.14 million (31 March 2017: Rs. 0.18 million) has been included under vehicle running and maintenance expense in note 27.

13. Employee Stock Option Scheme

In terms of approval of members accorded and in accordance with SEBI (ESOP & ESPS) Guidelines, 1999, the Parent Company constituted “JIL Employees Stock Option Scheme, 2013 (Scheme 2013)” for specified categories of employees and directors of the Company, its subsidiaries and holding companies. Under the Scheme 2013, up to 590000 stock options can be issued to eligible directors (other than promoter directors, independent directors and nominee directors of the Company/subsidiaries/holding companies) and other specified categories of employees of the Company/subsidiaries/holding companies. The options are to be granted at market price. As per SEBI Guidelines, the market price is taken as the closing price on the day preceding the date of grant of options, on the stock exchange where the trading volume is the highest.

Each option, upon vesting, shall entitle the holder to subscribe 1 (one) fully paid equity share of Rs. 10 of the Company. 20% of the options shall vest on first anniversary of the grant date, subsequent 30% shall vest on second anniversary and balance 50% of the options shall vest on the third anniversary of the grant date.

The Company has constituted a Compensation Committee, comprising of a majority of independent directors. This Committee is fully empowered to administer the Scheme 2013.

Expenses arising from share-based payment transaction

The expenses arising from share-based payment transaction recognised in Standalone Financial Statements as part of Investments as at 31 March 2018 Rs. 2.37 million (31 March 2017: Rs. 2.09 million; 01 April 2016: Rs. 2.66 million).

14. First-time adoption of Ind AS Transition to Ind AS

These are the Company’s first financial statements prepared in accordance with Ind AS.

The significant accounting policies set out in note 2 have been applied in preparing the financial statements for the year ended 31 March 2018, the comparative information presented in these financial statements for the year ended 31 March 2017 and in the preparation of an opening Ind AS balance sheet at 1 April 2016 (the Company’s date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standard) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the Company’s financial position, financial performance and cash flows is set out in the following tables and notes.

14(A). Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

Ind AS optional exemptions

1. Deemed cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition. This exemption can also been used for intangible assets covered by Ind AS 38 Intangible assets.

Accordingly, the Company had elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying date.

2. De-recognition of financial assets and liabilities

Ind AS 101 permits a first-time adopter to apply the de-recognition provisions of Ind AS 109 “Financial Instruments” prospectively for transactions occuring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the de-recognition requirements in Ind AS 109 retrospectively from a date of the entity’s choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognised as a result of past transactions was obtained at the time of initially accounting for those transactions.

The Company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

Ind AS mandatory exceptions

1. Estimates

An entity’s estimate in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless here is objective evidence that those estimates were in error.

Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for investments in preference shares (debt instruments) carried at FVPL in accordance with Ind AS at the date of transition as this was not required under previous GAAP.

2. Classification and measurement of financial assets

Ind AS 101 requires an equity to assess classification of financial assets on the basis of the facts and circumstances existing as on the date of transition. Further, the standard permits measurement of financial assets accounted at amortised cost based on facts and circumstances existing at the date of transition it retrospective application is impracticable.

Accordingly, the Company has determined the classification of financial assets based on facts and circumstances that exist on the date of transition. Management of the financial assets accounted at amortised cost has been done retrospective except where the same is impracticable.

14(E). Statement of Cash Flows

Other than effect of certain reclassifications due to difference in presentation, there was no other material effect of cash flows from operating, financing, investing activities for all period presented.

Note 1: Fair valuation of investments

Under the previous GAAP, investments in equity instruments and debt instruments were classified as long-term investments or current investments based on the intended holding period and realisability. Long-term investments were carried at cost less provision for other than temporary decline in the vale of such investments. Current investments were carried at lower of cost and fair value. Under Ind AS, investments in subsidiaries are carried at cost except investments in preference shares (debt instruments) are measured at fair value. The resulting fair value changes with respect to investments in preference shares (debt instruments) designated as at FVPL. Accordingly, an amount of Rs. (9.96) million has been recognised as fair value gain/(loss) in to the value of investments as at 31 March 2017 (01 April 2016: Rs. (401.56) million) with corresponding increase/decrease in other equity and profit for the year ended 31 March 2017 by Rs. 391.60 million.

Note 2: Re-measurements of post-employment benefit obligations

Under Ind AS, re-measurements i.e. actuarial gains and losses and the return on plan assets on the net defined benefit obligation are recognised in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year. As a result of this change, the profit before tax for the year ended 31 March 2017 increased by Rs. 0.01 million. There is no impact on the total equity as at 1 April 2016 and 31 March 2017.

Note 3: Employee share-based payment expense

Under the previous GAAP, the cost of equity-settled employee share based plan were recognised using the intrinsic value method. Under Ind AS, the cost of equity settled share based plan is recognised based on the fair value of options as at the grant date. Consequently, the investments in subsidiaries for the year ended 31 March 2017 increased by Rs. 2.09 million in relation to equity settled share based payment transaction with the employee of the subsidiary company, with the corresponding increase in share based payment reserve by Rs. 2.09 million as at 31 March 2017 (01 April 2016: Rs. 2.66 million).

Note 4: Other comprehensive income

Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expenses that are not recognised in profit or loss but are shown in the statement of profit and loss as ‘Other comprehensive income’ includes re-measurements of defined benefit plans. The concept of other comprehensive income did not exist under previous GAAP.

Note 5: Exceptional items

Exceptional items have been reclassified to the respective heads to conform to Ind AS classification.

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Mar 31, 2016

1. Issued, subscribed & paid-up share capital includes shares allotted for consideration other than cash during the last five years:

a) 3,835,348 equity shares of Rs. 10 each allotted pursuant to the Scheme of Arrangement with Jubilant Agri and Consumer Products Limited and Enpro Oil Private Limited during the FY 2011-12.

b) 7,964,056 equity shares of Rs. 10 each allotted pursuant to the Scheme of Amalgamation & Demerger with Jubilant Life Sciences Limited during the FY 2010-11.

2. Details of shareholders holding more than 5% of the aggregate shares in the Company:

3. The Company has only one class of equity shares having par value of Rs. 10 each. Each equity shareholder is eligible for one vote per share.

4. For Employee Stock Option Scheme refer note 32.

5. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholders.

6. During the current year, under the JIL Employees Stock Option Scheme, 2013; 37,196 equity shares were allotted and issued, out of which 855 equity shares and 36,341 equity shares were allotted and issued @ Rs. 50.50 per equity share and @ Rs. 108.10 per equity share (including securities premium), respectively to the eligible persons upon exercise of vested options.

7. The Board has not proposed any dividend for the year.

8. Based on transitional provision provided in note 7(b) of Schedule II of Companies Act, 2013, where useful life of fixed assets had become nil in terms of the said schedule, carrying amount of such assets as at 1st April, 2014 had been debited to the opening balance of the surplus. (Refer note 36)

9. Fixed assets of the Company are charged in favour of bankers for term loan availed by Jubilant Agri and Consumer Products Limited, its wholly owned subsidiary company.

10. Discounts, claims to customers and other selling expenses includes Rs.12.39 million (Previous Year: Rs. 28.39 million) on account of surplus over the cost and margin for which the Company is entitled to, being passed on to the bottler in terms of the agreement with them.

11. Expenditure related to corporate social responsibility as per Section 135 of the Companies Act, 2013, read with Schedule VII, thereof: Rs. Nil (Previous Year: Rs. 1.99 million). There is no requirement of CSR specific for the year as there is no profits calculated under section 198 of the Companies Act, 2013.

12. Contingent liabilities & commitments (to the extent not provided for)

I) Claims against Company not acknowledged as debt:

a) Claims/Demands in respect of which proceeding or appeals are pending and are not acknowledged as debts, as at 31 March 2016 is '' Nil (Previous Year: '' Nil), however, demands in respect of business transferred in earlier years to Jubilant Agri and Consumer Products Limited in terms of the Business Transfer Agreement and Scheme of Arrangement though the demands may be continuing in the name of the Company.

b) Outstanding guarantees furnished by banks on behalf of the Company is Rs. 0.50 million (Previous Year: Rs. Nil).

II) Guarantees:

The Company has given corporate guarantee on behalf of its wholly owned subsidiary, Jubilant Agri and Consumer Products Limited to secure financial facilities granted by banks, details for guarantees as at 31 March 2016 are as under:

a) To Axis Bank Ltd of Rs. 528 million (Previous Year: Rs. 700 million) for working capital facility (including non fund based facility) and effective guarantee is Rs. 115.05 million (Previous Year: Rs. 271.81 million).

b) To Yes Bank Ltd of Rs. 302.50 million (Previous Year: Rs. 400 million) for working capital facility (including non fund based facility) and effective guarantee is Rs. 204.32 million (Previous Year: Rs. 283.38 million).

c) To IDBI Bank Ltd of Rs. 566 million (Previous Year: Rs. 750 million) for working capital facility (including non fund based facility) and effective guarantee is Rs. 291.07 million (Previous Year: '' 473.00 million).

d) To Corporation Bank of Rs. 753.50 million (Previous Year: Rs. 1000 million) for working capital facility (including non fund based facility) and effective guarantee is Rs.388.60 million (Previous Year: Rs. 612.18 million).

e) To Yes Bank Ltd of Rs. Nil (Previous Year: Rs. 1200 million) for term loan facility and effective guarantee is Rs. Nil (Previous Year: Rs.1114.29 million).

f) To RBL Bank Limited (formerly known as Ratnakar Bank Ltd of Rs. Nil (Previous Year: Rs. 850 million) for term loan facility and effective guarantee is Rs. Nil (Previous Year: Rs. 623.33 million).

g) To Axis Bank Limited of Rs. 1500 million (Previous Year: Rs. Nil) for term loan facility and effective guarantee is Rs. 1515.48 million including interest (Previous Year: Rs. Nil).

III) Commitments:

a) Capital Commitments

Estimated amount of contracts remaining to be executed on capital account (net of advances) Rs. Nil (Previous Year: Rs. Nil) [Advances Rs. Nil (Previous Year: Rs. Nil)].

b) For lease commitment refer note 33.

13.. Micro and small business entities

There are no micro and small enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31 March 2016. The information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED) has been determined to the extent such parties have been identified on the basis of information available with the Company.

14.. Excise Duty under manufacturing expenses denotes provision on stock deferential and other claims/payments.

15.. Employee Stock Option Scheme

In terms of approval of members accorded and in accordance with SEBI (ESOP & ESPS) Guidelines, 1999, the Company constituted "JIL Employees Stock Option Scheme, 2013 (Scheme 2013)" for specified categories of employees and directors of the Company, its subsidiaries and holding companies. Under the Scheme 2013, up to 590000 stock options can be issued to eligible directors (other than promoter directors, independent directors and nominee directors of the Company/subsidiaries/holding companies) and other specified categories of employees of the Company/subsidiaries/holding companies. The options are to be granted at market price. As per SEBI Guidelines, the market price is taken as the closing price on the day preceding the date of grant of options, on the stock exchange where the trading volume is the highest.

Each option, upon vestinshall vest on the third anniversary of the grant date.

The Company has constituted a Compensation Committee, comprising of a majority of independent directors. This Committee is fully empowered to administer the Scheme 2013.

16.. Disclosures of leasing arrangements

I) Operating lease:

a. The Company''s significant operating lease arrangements are in respect of premises (residential, offices, godowns etc.). These leasing arrangements, which are cancellable, range between 11 months and 3 years generally and are usually renewable by mutual agreeable terms. The aggregate lease rentals have been charged as expenses.

b. The Company has operating lease arrangements in respect of vehicles which are cancellable, range between 2 years and 5 years. The aggregate lease rentals payable are charged as expenses. Rental expenses recognized under such leases amounting to Rs. 0.08 million (Previous year: Nil) has been included under vehicle running and maintenance expense in note 27.

17.. Current tax includes '' Nil [Previous Year: Rs. (0.36) million] related to previous years.

35. Disclosure required by Accounting Standard 29 (AS-29) “Provisions, Contingent Liabilities and Contingent Assets”

a) Previous year figures are given in parenthesis.

b) Provision for excise duty represents the excise duty on closing stock of finished goods and also in respect of written off/provision of write down of inventory.

18. During the previous year, pursuant to Companies Act, 2013 ("the Act), the Company had revised depreciation rates on fixed assets as per the useful life specified in part "C" of Schedule II of the Act. As a result of the change, the depreciation charges was lower by Rs. 0.28 million for the year ended 31 March 2015. Further based on transitional provision provided in note 7 (b) of the said Schedule, an amount of Rs. 0.11 million, where useful life has become nil in terms of the said schedule, had been debited to the opening balance of the surplus.

17. Employee benefits have been calculated as under:

(A) Defined contribution plans

a) Provident fund*

b) Superannuation fund

(B) Defined benefit plans

a) Compensated absences and gratuity

In accordance with Accounting Standard 15, an actuarial valuation has been carried out in respect of gratuity and compensated absences. The discount rate assumed is 7.90% (Previous Year: 8%) which is determined by reference to market yield at the Balance Sheet date on Government bonds. The retirement age has been considered at 58 years and mortality table is as per IALM ( 2006-08) [Pervious Year: IALM (1994-96)].

The estimates of future salary increases, considered in actuarial valuation is 10% p.a. for first three year and 5% p.a. thereafter (Pervious Year: 5% p.a. flat) take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

b) Provident fund

The Guidance on implementation of AS 15, Employee Benefits (Revised 2005) issued by Accounting Standard Board (ASB) states that benefits involving provident funds, which require interest shortfall to be compensated, are to be considered as defined benefit plans. The actuary has worked out a liability of Rs. Nil (Previous Year: Rs. Nil) likely to arise towards interest guarantee. The Trust is managing common corpus of some of the group companies. The total liability of Rs. Nil (Previous Year: Rs. Nil) as worked out by the actuary has been allocated to each entity based on the corpus value of each entity as on 31st March 2016. Accordingly, liability of Rs. Nil (Previous Year: Rs. Nil) has been allocated to the Company and Rs. Nil (Previous Year: Rs.Nil ) has been charged to Statement of Profit and Loss during the year. The Company has contributed Rs. 0.12 million (Previous Year: Rs. 0.14 million) to provident fund for the year.

18. Segment Reporting

The Company ''s operation comprises of IMFL business only. As such, there are no separate reportable business or geographical segments in terms of Accounting Standard 17 on "Segment Reporting".

19. Related Party Disclosures

1) Related parties where control exists: Subsidiaries:

Jubilant Agri And Consumer Products Limited, Jubilant Industries Inc., USA.

2) Other related parties with whom transactions have taken place during the year:

a) Key management personnel: Mr. Videh Kumar Jaipuriar* (Managing Director), Mr. Sandeep Kumar Shaw (Chief Financial Officer), Mr. Deepak Gupta (Company Secretary) (up to 04 June 2015), Mr. Dinesh Kumar Gupta (Company Secretary) (w.e.f. 16 June 2015).

* He was appointed as Managing director without remuneration w.e.f. March 1, 2013 for a period of three years . Since his term of office was expiring on February 29, 2016, he was re-appointed as Managing Director w.e.f. March 01, 2016 for a further period of three years, subject to the approval of the shareholders at the ensuing Annual General Meeting. Mr. Videh Kumar Jaipuriar is also serving and drawing remuneration as Whole-time Director from Jubilant Agri and Consumer Products Limited, a wholly owned subsidiary of the Company.

b) Enterprise over which directors and major shareholders of the Company have significant influence: Jubilant Life Sciences Limited

c) Others: Pace Marketing Specialties Limited Officer''s Superannuation Scheme (Trust), VAM Employees Provident Fund Trust, Jubilant Bhartia Foundation.

20. Value of imports calculated on CIF basis

Value of imports calculated on CIF basis for the year ended 31 March 2016 is Rs.Nil (Previous Year: Rs. Nil).

21. Expenditure in foreign currency

Expenditure in foreign currency for the year ended 31 March 2016 is Rs. Nil (Previous Year: Rs. Nil).

22. Earnings in foreign exchange

Earnings in foreign exchange for the year ended 31 March 2016 is Rs. Nil (Previous Year: Rs. Nil).

23. Amounts remitted in foreign currency during the year on account of dividend

Amounts remitted in foreign currency on account of dividend during the year ended 31 March 2016 is Rs. Nil (Previous Year: Rs. Nil).

24. Previous year''s figures have been regrouped/ reclassified wherever necessary to correspond with the current year''s classification/ presentation.

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Mar 31, 2014

1. Corporate information

Jubilant Industries Limited (the Company) is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Presently, the Company is engaged in the business of manufacturing of Indian-made foreign liquor. Its shares are listed on the Bombay Stock Exchange Limited and the National Stock Exchange of India Limited.

2. Contingent liabilities & commitments (to the extent not provided for)

I) Claims against Company not acknowledged as debt:

Claims/Demands in respect of which proceeding or appeals are pending and are not acknowledged as debts, as at 31st March, 2014 is Rs. Nil (Previous Year: Rs. Nil), however, demands in respect of business transferred in earlier years to Jubilant Agri and Consumer Products Limited in terms of the Business Transfer Agreement and Scheme of Arrangement though the demands may be continuing in the name of the Company.

II) Guarantees:

The Company has given corporate guarantee on behalf of its wholly owned subsidiary, Jubilant Agri and Consumer Products Limited to secure financial facilities granted by banks, details for guarantees as at 31st March, 2014 are as under:

a) To Axis Bank Ltd of Rs. 700.00 million (Previous Year: Rs. 700 million) for working capital facility (including non fund based facility) and effective guarantee is Rs. 354.95 million (Previous Year: Rs. 454.84 million).

b) To Yes Bank Ltd of Rs. 400.00 million (Previous Year: Rs. 400 million) for working capital facility (including non fund basedfacility)andeffectiveguaranteeis Rs. 273.51 million (Previous Year: Rs. 209.41 million).

c) To IDBI Bank Ltd of Rs. 750.00 million (Previous Year: Rs. 750 million) for working capital facility (including non fund based facility) and effective guarantee is Rs. 278.00 million (Previous Year: Rs. 70.18 million).

d) To Corporation Bank of Rs. 1000.00 million (Previous Year: Rs. Nil) for working capital facility (including non fund based facility) and effective guarantee is Rs. 553.20 million (Previous Year: Rs. Nil)

e) To Yes Bank Ltd of Rs. 1200.00 million (Previous Year: Rs. 1200 million) for term loan facility and effective guarantee is Rs. 1200.00 million (Previous Year: Rs. 1200 million).

f) To Ratnakar Bank Ltd of Rs. 850.00 million (Previous Year: Rs. 1200 million) for term loan facility and effective guarantee is Rs. 807.50 million (Previous Year: Rs. 800 million).

III) Commitments

a) Capital Commitments

Estimated amount of contracts remaining to be executed on capital account (net of advances) Rs. Nil (Previous Year: Rs. Nil) [Advances Rs. Nil (Previous Year: Rs. Nil).

b) For lease commitment refer note 34.

3. Excise Duty under manufacturing expenses denotes provision on stock deferential and other claims/payments.

4. Employee Stock Option Scheme

In terms of approval of members accorded and in accordance with SEBI (ESOP &ESPS) Guidelines, 1999, the Company constituted "JIL Employees Stock Option Scheme, 2013 (Scheme 2013)" for specified categories of employees and directors of the Company, its subsidiaries and holding companies. Under the Scheme 2013, up to 590000 stock options can be issued to eligible directors (other than promoter directors, independent directors and nominee directors of the Company/subsidiaries/holding companies) and other specified categories of employees of the Company/subsidiaries/ holding companies. The options are to be granted at market price. As per SEBI Guidelines, the market price is taken as the closing price on the day preceding the date of grant of options, on the stock exchange where the trading volume is the highest.

Each option, upon vesting, shall entitle the holder to subscribe 1 (one) fully paid equity share of Rs. 10 of the Company. 20% of the options shall vest on first anniversary of the grant date, subsequent 30% shall vest on second anniversary and balance 50% of the options shall vest on the third anniversary of the grant date.

The Company has constituted a Compensation Committee, comprising of a majority of independent directors. This Committee is fully empowered to administer the Scheme 2013.

5. Disclosures of leasing arrangements

I) Operating lease: The Company''s significant operating lease arrangements are in respect of premises (residential, offices, godowns etc.). These leasing arrangements, which are cancellable, range between 11 months and 3 years generally and are usually renewable by mutual agreeable terms. The aggregate lease rentals have been charged as expenses.

6. Current tax includes Rs. 1.07 million (Previous Year: Rs. Nil) related to previous years.

7. Related Party Disclosures

1) Related parties where control exists:

Subsidiaries:

Jubilant Agri And Consumer Products Limited.

2) Other related parties with whom transactions have taken place during the year:

a) Key Management Personnel: Mr. Videh Kumar Jaipuriar* (Managing Director)

* He was appointed as managing director without remuneration w.e.f. March 1, 2013 for a period of three years and he is getting remuneration from Jubilant Agri and Consumer Products Limited, a wholly owned subsidiary of the Company, as its Whole-time Director.

b) Enterprise over which directors and major shareholders of the Company have substantial influence: Jubilant Life Sciences Limited

c) Others: Pace Marketing Specialities Limited Officer''s Superannuation Scheme (Trust), VAM Employees Provident Fund Trust.

8. Value of imports calculated on CIF basis

Value of imports calculated on CIF basis for the year ended 31st March, 2014 is Rs. Nil (Previous Year: Rs. Nil, excluding transaction for Jubilant Agri and Consumer Products Limited (JACPL) during the period where business was run by the Company on behalf of JACPL as Trust as per Business Transfer Agreement).

9. Expenditure in foreign currency

Expenditure in foreign currency for the year ended 31st March, 2014 is Rs. Nil (Previous Year: Rs. Nil, excluding transaction for Jubilant Agri and Consumer Products Limited (JACPL) during the period where business was run by the Company on behalf of JACPL as Trust as per Business Transfer Agreement).

10. Earnings in foreign exchange

Earnings in foreign exchange for the year ended 31st March, 2014 is Rs. Nil (Previous Year: Rs. Nil, excluding transaction for Jubilant Agri and Consumer Products Limited (JACPL) during the period where business was run by the Company on behalf of JACPL as Trust as per Business Transfer Agreement).

11. Amounts remitted in foreign currency during the year on account of dividend Amounts remitted in foreign currency on account of dividend during the year ended 31st March, 2014 is Rs. Nil (Previous Year: Rs. Nil).

12. Previous year''s figures have been regrouped/ reclassified wherever necessary to correspond with the current year''s classification/ presentation.

---

Mar 31, 2013

1. The Board approved a Business Transfer Agreement (BTA) between the Company and Jubilant Agri and Consumer Products Limited (JACPL), a wholly owned subsidiary of the Company. The BTA became effective on 1st March, 2013 upon receipt of consent of the members of the Company.

Pursuant to the said BTA, the Company has transfered its Vinyl-Pyridine Latex ("VP Latex") and Solid Poly Vinyl Acetate ("Solid PVA") business to JACPL on a going concern basis by way of slump sale, with effect from commencement of business hours of 1st April, 2012. JACPL has discharged the purchase consideration amounting to Rs.974.80 million by issuing 10% Non-cumulative redeemable preference shares.

The results for the year ended 31st March, 2013 are after giving the effect of the BTA and accordingly, not comparable with previous year.

The effect of the transaction on the accounts of the Company as at 1st April, 2012 is set out below:

2. Contingent Liabilities & Commitments (to the extent not provided for) I) Claims against Company not acknowledged as debt*:

Claims/Demands in respect of which proceeding or appeals are pending and are not acknowledged as debts on account of:

*Excluding demands in respect of business transferred to Jubilant Agri and Consumer Products Limited in terms of the Business Transfer Agreement (Previous Year: Scheme of Arrangement) though the demands may be continuing in the name of the Company.

II) Guarantees:

a) The Company has given corporate guarantee on behalf of its wholly owned subsidiary, Jubilant Agri and Consumer Products Limited to secure fnancial facilities granted by banks, details for guarantees as at 31st March, 2013 are as under:

i) To Axis Bank Limited of Rs.700.00 million for working capital facility and effective guarantee is Rs.47.32 million. ii) To Yes Bank Limited of Rs.400.00 million for working capital facility and effective guarantee is Rs.76.21 million. iii) To IDBI Bank Limited of Rs.750.00 million for working capital facility and effective guarantee is Rs.70.18 million. iv) To Ye s Bank Limited of Rs.1200.00 million for working capital facility and effective guarantee is Rs.1200.00 million. v) To Ratnakar Bank Limited of Rs.1200.00 million for working capital facility and effective guarantee is Rs.800.00 million.

b) Outstanding guarantees furnished by banks on behalf of the Company/by the Company including in respect of Letters of Credit is Rs. Nil (Previous Year: Rs.319.81 million).

c) Others:

Liability in respect of bills discounted with banks is Rs. Nil (Previous Year: Rs.41.79 million).

II) Commitments

a) Capital Commitments

Estimated amount of contracts remaining to be executed on capital account (net of advances) Rs. Nil (Previous Year: Rs.6.54 million) [Advances Rs. Nil (Previous Year: Rs.0.30 million)].

b) For lease commitment refer note 38.

3. Micro and Small Business Entities

There are no micro and small enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March, 2013. The information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED) has been determined to the extent such parties have been identifed on the basis of information available with the Company.

Dues to micro and small enterprises have been determined to the extent such parties have been identifed on the basis of information collected by the management. This has been relied upon by the auditors.

4. Excise Duty under manufacturing expenses denotes provision on stock deferential and other claims/payments.

5. Employee Stock Option Scheme

In terms of approval of members accorded and in accordance with SEBI (ESOP &ESPS) Guidelines, 1999, the Company constituted "JIL Employees Stock Option Scheme, 2013 (Scheme 2013) for specifed categories of employees and directors of the Company, its subsidiaries and holding companies. Under the Scheme 2013, up to 590000 stock options can be issued to eligible directors (other than promoter directors, independent directors and nominee directors of the Company/subsidiaries/ holding companies) and other specifed categories of employees of the Company/subsidiaries/holding companies. The options are to be granted at market price. As per SEBI Guidelines, the market price is taken as the closing price on the day preceding the date of grant of options, on the stock exchange where the trading volume is the highest.

Each option, upon vesting, shall entitle the holder to subscribe 1 (one) fully paid equity share of Rs.10 of the Company. 20% of the options shall vest on frst anniversary of the grant date, subsequent 30% shall vest on second anniversary and balance 50% of the options shall vest on the third anniversary of the grant date.

The Company has constituted a Compensation Committee, comprising of a majority of independent directors. This Committee is fully empowered to administer the Scheme 2013.

The Company has not granted any option to its directors or employees upto 31st March, 2013.

Certain employees of the Company, who were previously employed with Jubilant Life Sciences Limited and whose service were transferred to this Company in term of the Scheme of Amalgamation & Demerger (2010) and were granted Stock Options under Jubilant Employee Stock Option Scheme (ESOP) 2005 of Jubilant Life Sciences Limited, are entitled to certain number of shares of the Company which shall be transferred by the "Jubilant Employee Welfare Trust" (the Trust) as per the said Scheme. Such transfer of shares by the Trust has no fnancial implications in the fnancial books of the Company.

6. Disclosures of leasing arrangements

I) Operating lease: The Company''s signifcant operating lease arrangements are in respect of premises (residential, offces, godowns etc.). These leasing arrangements, which are cancellable, range between 11 months and 3 years generally and are usually renewable by mutual agreeable terms. The aggregate lease rentals have been charged as expenses.

II) Assets acquired under fnance lease:

The Company has taken vehicles under fnance lease. Future minimum lease payments and their present values under fnance leases as at 31st March, 2013 are as follows:

a) Previous year fgures are given in parenthesis.

b) There is no element of contingent rent or sub lease payments. Company has option to purchase the assets at the end of the lease term. There are no restrictions imposed by these lease arrangements regarding dividend, additional debt and further leasing.

7. The bottling unit of the Company situated at Nira holds a potable liquor license for Indian Made Foreign Liquor (IMFL) and the same is bottling IMFL on the order of another company for bottling fee.

The turnover of IMFL Business, which was accounted for on net economic beneft principle earlier, has now been accounted for on gross basis. However, there is no fnancial impact due to this change.

a) Previous year fgures are given in parenthesis.

b) Provision for excise duty represents the excise duty on closing stock of fnished goods and also in respect of written off/ provision of write down of inventory.

8. Derivatives

a) The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency exposures relating to the underlying transactions and frm commitments. The Company does not enter into any derivative instruments for trading and speculative purposes.

9. Discontinuing operations

The Board of Directors of the Company had decided to discontinue its operation relating to Application Polymer Division (APD) in February, 2011 and to realize the assets and pay off its liabilities in due course.

However consequent to Business Transfer Agreement the opening assets and liabilities of discontinuing operations have been transferred to Jubilant Agri and Consumer Products Limited, a wholly owned subsidiary of the Company.

10. Employee benefts have been calculated as under: (A) Defned contribution plans

a) Provident fund*

b) Superannuation fund

(B) Defned beneft plans

a) Compensated absences and gratuity

In accordance with Accounting Standard 15, an actuarial valuation has been carried out in respect of gratuity and compensated absences. The discount rate assumed is 8% which is determined by reference to market yield at the Balance Sheet date on Government bonds. The retirement age has been considered at 58 years and mortality table is as per IALM (1994-96).

The estimates of future salary increases, considered in actuarial valuation 5% take account of infation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

b) Provident fund

The Guidance on implementation of AS 15, Employee Benefts (Revised 2005) issued by Accounting Standard Board (ASB) states that benefts involving provident funds, which require interest shortfall to be compensated, are to be considered as defned beneft plans. The actuary has worked out a liability of Rs.9.67 million (Previous Year: Rs.8.04 million) likely to arise towards interest guarantee. The Trust is managing common corpus of some of the group companies. The total liability of Rs.9.67 million (Previous Year: Rs.8.04 million) as worked out by the actuary has been allocated to each entity based on the corpus value of each entity as on 31st March 2013. Accordingly,liability of Rs. Nil (Previous Year: Rs.(0.06) million) has been allocated to the Company and Rs. Nil (Previous Year: Rs.(0.06) million) has been charged to Statement of Proft and Loss during the year. The Company has contributed Rs.0.09 million (Previous Year: Rs.3.87 million) to provident fund for the year.

11. Segment reporting

i) The Company operates under one reportable segment viz. IMFL (Indian Made Foreign Liquor).

ii) In respect of secondary segment information, the Company has identifed its geographical segments as:

a. With in India, and

b. Outside India.

45. Related party disclosures

1) Related parties where control exists: Subsidiaries: Jubilant Agri And Consumer Products Limited.

2) Other related parties with whom transactions have taken place during the year:

a) Key management personnel: Mr. Videh Kumar Jaipuriar (Managing Director).

b) Enterprise over which directors and major shareholders of the Company have substantial infuence: Jubilant Life Sciences Limited, Jubilant Life Sciences (Shanghai) Ltd. China, Jubilant Life Sciences (USA) Inc. USA., Jubilant Enpro Private Limited, Enpro Oil (P) Limited

c) Others: Pace Marketing Specialities Limited Offcer''s Superannuation Scheme (Trust), VAM Employees Provident Fund Trust, VAM Offcers Superannuation Trust, Jubilant Bhartia Foundation.

12. Previous year''s fgures have been regrouped/ reclassifed wherever necessary to correspond with the current year''s classifcation/ presentation.

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Mar 31, 2012

1. The Hon'ble Allahabad High Court approved a Scheme of Arrangement (Scheme) amongst the Company, Jubilant Agri and Consumer Products Ltd (JACPL), a wholly owned subsidiary of the Company and Enpro Oil Private Limited (EOPL) during the year. The Scheme became effective on 1st February, 2012 upon filing of Court Orders with the Registrar of Companies, Uttar Pradesh and Uttarakhand. Under the Scheme, the Agri and Consumer Products Business of the Company has been vested on slump sale basis into JACPL and the Mall cum Hyper Market Business (Demerged Undertaking) of EOPL has been demerged and vested into JACPL with effect from 1st April, 2011 being the appointed date. In terms of the Scheme, the shareholders of EOPL were allotted 38,35,348 Equity Shares of Rs.10 each of the Company towards consideration for demerger. JACPL has discharged the purchase consideration amounting to Rs.1648.82 million by issuing 10% Optionally Convertible Non-cumulative Redeemable Preference Shares to the Company.

From the appointed date i.e. 1st April, 2011 till the Scheme becoming effective, in terms of the Scheme, the operations of JACPL were run by the Company and EOPL, for and on behalf of JACPL, on trust and the economic benefits attributable to JACPL have been passed on to it. Since the economic benefits under the Scheme have accrued from appointed date, the equity shares of the Company issued pursuant to the Scheme have also been considered from the appointed date for the purpose of calculation of earnings per share. The results for the year ended 31st March, 2012 are after giving the effect of the Scheme and accordingly, not comparable with previous year.

2. Contingent Liabilities & Commitments (to the extent not provided for) I) Contingent Liabilities

a) Claims/Demands in respect of which proceeding or appeals are pending and are not acknowledged as debts on account of:

(Rs. in million)

As at 31st March 2012** 2011*

Central Excise - 11.41

Customs 5.35 114.87

Sales Tax 11.79 21.74

Service Tax - 16.10

Others - 103.60

* Inclusive of Contingent liabilities taken over in term of the Scheme of Amalgamation & Demerger. Certain of the above demands are still in the name of Jubilant Life Sciences Ltd.

** Excluding demands in respect of business transferred to Jubilant Agri and Consumer Products Limited in terms of the Scheme of Arrangement though the demands may be continuing in the name of the Company.

b) Outstanding guarantees furnished by banks on behalf of the Company/by the Company including in respect of Letters of Credit is Rs. 319.81 million (Previous Year: Rs. 692.16 million).

c) Others:

i) Export Obligations under Advance License Scheme/Duty Free Import Authorization Scheme on duty free import of specific raw materials, remaining outstanding is Rs. Nil million (Previous Year: Rs. 10.74 million).

ii) Liability in respect of bills discounted with banks is Rs. 41.79 million (Previous Year: Rs. Nil).

II) Commitments

a) Capital Commitments

Estimated amount of contracts remaining to be executed on Capital Account (Net of Advances) Rs. 6.54 million (Previous Year: Rs. 46.03 million) [Advances Rs. 0.30 million (Previous Year: Rs. Nil).

b) For lease commitment refer Note 37.

3. Micro and Small Business Entities

There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March, 2012. The information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED) has been determined to the extent such parties have been identified on the basis of information available with the Company.

4. Excise Duty under manufacturing expenses denotes provision on stock deferential and other claims/payments.

5. Employee Stock Option Scheme

Certain employees of the Company, who were previously employed with Jubilant Life Sciences Limited and whose service were transferred to this Company in term of the Scheme of Amalgamation & Demerger (2010) and were entitled to Employee Stock Option Scheme (ESOP) 2005 of Jubilant Life Sciences Limited, are entitled to certain number of shares of the Company which shall be transferred by the "Jubilant Employee Welfare Trust" (the Trust) as per the said Scheme. Such transfer of shares by the Trust has no financial implications in the financial books of the Company.

6. Disclosures of Leasing Arrangements

I) Operating Lease: The Company's significant operating lease arrangements are in respect of premises (residential, offices, godowns etc.). These leasing arrangements, which are cancellable, range between 11 months and 3 years generally and are usually renewable by mutual agreeable terms. The aggregate lease rentals have been charged as expenses.

a) Previous Year figures are given in parenthesis.

b) There is no element of contingent rent or sub lease payments. Company has option to purchase the assets at the end of the lease term. There are no restrictions imposed by these lease arrangements regarding dividend, additional debt and further leasing.

7. In line with the applicable accounting policies of the Company, during the year, preoperative expenses including trial run expenses (net) for projects and/or substantial expansions amounting to Rs. Nil (Previous Year: Rs. 6.80 million) have been capitalized up to the date of commencement of commercial production. The said expenditure (net of trial run receipts), so capitalized are accumulated as capital work in progress and have been allocated to respective fixed assets to the extent fixed assets were put to use and balance is appearing in capital work in progress.

8. The bottling unit of the Company situated at Nira holds a potable liquor license for Indian Made Foreign Liquor (IMFL) and the same is bottling IMFL on the order of another company and is charging bottling fee. These financial statements recognize Revenue and Expenditure, only to the extent the Company enjoys beneficial interest. In compliance with the requirements of Schedule VI to the Companies Act, 1956, the following information is given hereunder in respect of the transactions where the Company does not enjoy beneficial interest:

a) Previous year figures are given in parenthesis.

b) Provision for Excise Duty represents the excise duty on closing stock of finished goods and also in respect of written off/provision of write down of Inventory.

9. Derivatives

a) The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency exposures

(C) Defined Benefit Plans

a) Compensated Absences Gratuity

In accordance with Accounting Standard 15, an actuarial valuation has been carried out in respect of gratuity and compensated absences. The discount rate assumed is 8.30 % which is determined by reference to market yield at the Balance Sheet date on Government bonds. The retirement age has been considered at 58 years and mortality table is as per LIC (1994-96).

The estimates of future salary increases, considered in actuarial valuation 6.35% take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

b) Provident Fund

The Guidance on implementation of AS 15, Employee Benefits (Revised 2005) issued by Accounting Standard Board (ASB) states that benefits involving provident funds, which require interest shortfall to be compensated, are to be considered as defined benefit plans. The actuary has recommended a provision of Rs. 8.04 million (Previous Year: Rs. 6.74 million) towards liability likely to arise towards interest guarantee. The relevant Provident Fund Trust for the Company is managing common corpus of four companies. The total actuary liability of shortfall amounting to Rs. 8.04 million (Previous Year: Rs. 6.74 million) as worked out by the actuary has been allocated to each entity based on the corpus value of each entity as on 31st March 2012. Accordingly, Rs. (0.06) million (Previous Year: Rs. 0.93 million) was allocated to the Company and has been charged to Statement of Profit and Loss during the year. The Company has contributed Rs. 4.56 million (Previous Year: Rs. 13.38 million) to provident fund for the year.

10. Segment Reporting

I) Based on the guiding principles given in Accounting Standard 17 (AS 17) on "Segment Reporting", the Company's Primary Business Segments were organized around customers on industry and products lines as under, however, Post demerger of Agri and Consumer Products Business by way of slump sale, the Company has identified only one segment–" Performance Polymer" as reportable segment:

a. Performance Polymers: (i) Food Polymer (Solid PVA), (ii) VP Latex and SBR Latex, and (iii) Others (including Consumer Products upto 31st March, 2011)

b. Agri Products: (i) Single Super Phosphate (ii) Sulphuric Acid and (iii) Agro Chemicals for Crop Products (Upto 31st March, 2011)

c. Discontinuing Operation: Application Polymer Products

II) In respect of Secondary Segment information, the Company has identified its Geographical Segments as:

a. With in India, and

b. Outside India.

45. Related Party Disclosures

1) Related Parties where control exists: Subsidiaries:

Jubilant Agri And Consumer Products Limited

2) Other Related parties with whom transactions have taken place during the year:

a) Key Management Personnel: Mr. Ananda Mukherjee (upto 31.01.2012), Mr. Videh Kumar Jaipuriar*

The appointment of Mr. Videh Kumar Jaipuriar as, Whole Time Director with effect from 1st February, 2012 and his remuneration of Rs. 1.91 million as a Director, is subject to approval of the members of the Company in the ensuing Annual General Meeting.

b) Enterprise over which Directors and Major Shareholders of the Company have substantial influence:

Jubilant Life Sciences Limited, Jubilant Life Sciences (Shanghai) Ltd. China, Jubilant Life Sciences (USA) Inc. USA., Jubilant Enpro Private Limited, Enpro Oil (P) Limited

c) Others: Pace Marketing Specialities Limited Officer's Superannuation Scheme (Trust), VAM Employees Provident Fund Trust, VAM Officers Superannuation Trust, Jubilant Bhartia Foundation.

11. Details of Fixed Assets held for Sale/Alternate use

Plant & Machinery of Rs. 28.62 million (Previous Year: Rs. 28.62 million) of discontinuing operations are held by the Company for sale/alternate use.

38,35,348 equity shares of Rs. 10 each allotted and issued in pursuant to Scheme of Arrangement for consideration other than cash on 9th March, 2012. Since the economic benefit under the Scheme of Arrangement have accrued w.e.f. 1st April, 2011 being the appointed date, the equity shares issued pursuant to the Scheme have also been considered from appointed date for the purpose of calculation of earning per share.

12. Previous year's figures have been regrouped/ reclassified wherever necessary to correspond with the current year's classification/ presentation.

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Mar 31, 2011

1. During the year a Scheme of Amalgamation and Demerger (Scheme) among Jubilant Life Sciences Limited (JLL) (formerly Jubilant Organosys Limited), Speciality Molecules Ltd., Pace Marketing Specialities Ltd. and Jubilant Industries Limited (Company) (formerly Hitech Shiksha Limited) became effective on 15th November, 2010. Under the Scheme, the Agri and Performance Polymer Business of JLL has been demerged and vested into the Company on 1st April, 2010. Upon Demerger, the shareholders of JLL received one equity share of Rs.10 each of company for every 20 equity shares of Rs. 1 each held in the JLL.

From the demerger appointed date, i.e. 1st April, 2010 till the scheme becoming effective, the operations of Company were run by JLL, for and on behalf of Company, on trust and the economic benefits attributable to the Company have been passed on to it, in terms of the said scheme. Since the economic benefits under the scheme have accrued from appointed date, the equity shares issued pursuant to the scheme have also been considered from the appointed date for the purpose of calculation of Earnings Per Share. The results for the year are after giving the effect of the scheme and accordingly, not comparable with previous year.

2. Capital Commitments

Estimated amount of contracts remaining to be executed on capital Account (Net of Advances) Rs.46.03 million (previous Year :Rs Nil) [Advances Nil (Previous Year:Rs Nil)].

3. Contingent Liabilites

a) Claims/Demands in respect of which proceeding or appeals are pending and are not acknowledged as debts on account of:

(Rs. in million)

As at 31st March, 2011* 2010

central excise 11.41 -

customs 114.87 -

sales tax 21.74 -

service tax 16.10 -

others 103.60 -

*Inclusive of Contingent Liabilites taken over in term of the Amalgamaton & Demerger Scheme. Certain of the above demands are stll in the name of Jubilant Life Sciences Limited (formerly Jubilant Organosys Limited)

b) In respect of Single Super Phosphate (SSP), the Trade Tax Assessing officer of Rajasthan State, has assessed the Gypsum Content of SSP and held that the same is liable to trade tax, though, there is no tax on fertilizer for the period 1st April, 2002 to 31st December, 2007 and raised a demand of Rs.34.45 million. The same is being contested before Hon'ble Allahabad High Court by Jubilant Life Sciences Limited but any possible liability will flow to the Company.

c) Outstanding guarantees furnished by Banks on behalf of the Company/by the Company including in respect of Letters of credit is Rs. 692.16 million (Previous Year: Rs Nil).

d) Export Obligations under Advance License Scheme/Duty Free Import Authorization Scheme on duty free import of specific raw materials, remaining outstanding is Rs. 10.74 million (Previous Year: Rs. Nil).

4. Micro and Small Business Entities

There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March, 2011. The information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED) has been determined to the extent such parties have been identifed on the basis of information available with the Company.

5. Certain Employees of the Company, who were previously employed with Jubilant Life Sciences Limited (formerly Jubilant Organosys Limited) and whose service were transferred to this company in term of the scheme of Amalgamation & Demerger (2010) and were entitled to Employee Stock Option Scheme (ESOP) 2005 of Jubilant Life Sciences Limited, are entitled to certain number of shares of the Company which shall be transferred by the "Jubilant Employee Welfare Trust" (the Trust) as per the said scheme. Such transfer of shares by the Trust has no financial implicaton in the financial books of the Company.

6. The Company's significant operating lease arrangements are in respect of premises (residential, offices, godowns etc.). These leasing arrangements, which are cancellable, range between 11 months and 3 years generally and are usually renewable by mutual agreeable terms. The aggregate lease rentals have been charged as expenses Rs. 24.61 million (Previous Year: Rs.Nil) during the year. These lease agreements do not have contingent/price escalation clause.

7. in line with the applicable accounting policies of the Company, during the year, preoperative expenses including trial run expenses (net) for projects and/or substantial expansions amounting to Rs.6.80 million (Previous Year: Rs.Nil) have been capitalized/pending capitalization up to the date of commencement of commercial production. The said expenditure (net of trial run receipts), so capitalized are accumulated as Capital work in progress and have been allocated to respective Fixed Assets to the extent fixed assets were put to use and balance is appearing in Capital work in progress.

8. Discontinuing Operations:

The Board of Directors of the company had decided to discontinue its operation relating to Application Polymer Division in February, 2011 and to realise the assets and pay off its liabilities in due course.

The carrying amounts as of 31st March, 2011, of the total assets relating to the discontinuing operations aggregate to Rs.72.09 million (Previous Year: Rs.Nil) and the total liabilities to be settled relating to the discontinuing operations aggregate to Rs.38.17 million (Previous Year: Rs.Nil). in the opinion of the Company the assets and liabilities will have a value on realization in the ordinary course of business that are at least equal to the amounts at which they are stated in the Balance sheet.

9. Employees Benefits:

During the year the Company has recognized the following amounts in the Profit & Loss Account:

(C) Defned Benefit Plan

a) Compensated Absences Gratuity

In accordance with Accounting Standard 15,an actuarial valuation has been carried out in respect of gratuity and compensated absences. The discount rate assumed is 8.30 % which is determined by reference to market yield at the Balance Sheet date on Government bonds. The retrement age has been considered at 58 years and mortality table is as per LIC (1994-96).

The estmates of future salary increases, considered in actuarial valuaton 6.35% take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

b) Provident Fund

The Guidance on implementation of AS 15, Employee Benefits (Revised 2005) issued by Accounting Standard Board (ASB) states that benefits involving provident funds, which require interest shortall to be compensated, are to be considered as defined benefit plans. The actuary has recommended a provision of Rs.6.74 million towards liability likely to arise towards interest guarantee. The relevant Provident Fund Trust for the Company is managing common corpus of three companies. The total actuary liability of shortall amountng to Rs.6.74 million as worked out by the actuary has been allocated to each entity based on the corpus value of each entity as on 31st March, 2011. Accordingly, Rs.0.93 million was allocated to the Company and has been charged to Profit and Loss account during the year. The Company has contributed Rs.13.38 million to provident Fund (Previous Year: Rs.Nil) for the year.

10. Segment Reporting

i) Based on the guiding principles given in Accountng Standard 17 (AS-17) on "Segment Reporting", the Company's Primary Business Segments are organized around customers on industry and product lines as under:

a. Agri Products: (i) Single Super Phosphate and (ii) Agro Chemicals for Crop Products

b. Performance Polymers: (i) Food Polymer (Solid PVA), (ii) VP Latex and SBR Latex, (iii) Consumer Products (Application Polymer Products which was earlier part of this segment, Board of Directors of the Company had decided to discontinue its operation in February 2011 since the operaton was not viable and the same has shown separately as Discontinuing Operation)

c. others

d. Discontnuing Operaton : Application Polymer Products discontnued in February, 2011 as referred above in ‘b'

ii) In respect of Secondary Segment information, the Company has identfied its Geographical Segments as:

a. With in india, and

b. Outside India

Notes:

1) The Company has disclosed Business Segment as the Primary Segment.

2) Segments have been identified and reported taking into account the nature of products and services, the differing risk and returns, the organization structure and the internal financial reporting systems.

3) The Segment Revenues, Results, Assets and Liabilities include the respective amounts identifable to each of the segments and amounts allocated on a reasonable basis.

11. A. Related Party Disclosures

1) Related parties where control exists: Subsidiaries:

Jubilant Agri And Retail Private Limited (formerly Canonical Infotech Solutions Private Limited)

2) Other Related parties with whom transactions have taken place during the year:

a) Key Management Personal: Mr. Ananda Mukherjee.

b) Enterprise in which Directors and Major Shareholders of the Company are interested: Jubilant Life Sciences Limited (formerly Jubilant Organosys Limited), Jubilant Life Sciences (Shanghai) Ltd. China (formerly Jubilant Organosys (Shanghai) Ltd. China), Jubilant Life Sciences (USA) Inc. USA (formerly Jubilant Organosys (USA) Inc. USA.) Jubilant Enpro Private Limited.

c) Others: Pace Marketing Specialities Limited Officer's Superannuation Scheme (Trust). VAM Employees Provident Fund Trust, VAM Officers Superannuation Trust.

Notes:

1) Previous year fgures are given in parenthesis.

2) Includes Purchase of Raw Material, Finished Goods & Utlites from Jubilant Life Sciences Limited (formerly Jubilant Organosys Limited) of Rs.350.11 million (Previous Year: Rs. Nil).

3) Includes Sale of Goods, Utlites & Services to:

- Jubilant Life Sciences (Shanghai) Ltd. China (formerly Jubilant Organosys (Shanghai) Ltd. China) of Rs.2.72 million (Previous Year: Rs. Nil).

- Jubilant Life Sciences (USA) Inc. USA (formerly Jubilant Organosys (USA) Inc. USA) of Rs.10.56 million (Previous Year: Rs. Nil).

- Jubilant Life Sciences Limited (Formerly Jubilant Organosys Limited) of Rs.32.48 million (Previous Year: Rs. Nil).

4) Includes Current Account Dr Balance with Jubilant Life Sciences Limited (formerly Jubilant Organosys Llimited) of Rs.37.69 million (Previous Year: Rs.Nil).

5) Includes investment in Equity Share Capital:

- Equity Shares of Jubilant Agri And Retail (P) Ltd. (formerly Canonical Infotech Solutions (P) Ltd.) of Rs.0.40 million (40,000 equity shares of Rs.10/- each) had been purchased directly from Jubilant Agri And Retail (P) Ltd (formerly Canonical Infotech Solutons (P) Ltd.).

- Equity Shares of Jubilant Agri And Retail (P) Ltd (formerly Canonical Infotech Solutions (P) Ltd.) of Rs.0.10 million (10,000 equity shares of Rs.10/- each) had been purchased from Jubilant Enpro (P) Limited.

6) Services received from Jubilant Life Sciences Limited (formerly Jubilant Organosys Limited) of Rs.14.62 million (previous Year: Rs.Nil).

7) Payment of Rent to Jubilant Life Sciences Limited (formerly Jubilant Organosys Limited) of Rs.15.90 million (Previous Year: Rs. Nil).

8) Includes Contributon towards Provident Fund to VAM Employees Provident Fund Trust of Rs.11.64 million (Previous Year: Rs.Nil).

9) Includes Contributon towards Superannuaton Fund to VAM Ofcers Superannuation Trust of Rs.1.36 million (previous Year:Rs Nil) and Rs.1.82 million (Previous Year: Nil) to Pace Marketing Specialities Limited Officer's Superannuation scheme (trust).

12. B. Promoter Group

Group companies

The Company is controlled by Mr. Shyam S. Bhartia/ Mr. Hari S. Bhartia group ("the promoter group"), being a group as defined in the Monopolies and Restrictive Trade Practices Act, 1969.

The persons constituting the promoter group include individuals and corporate bodies who/which jointly exercise, and are in a position to exercise, control over the company. the names of these individuals and bodies corporate are Ms. Kavita Bhartia, Mr. Priyavrat Bhartia, Mr. Shamit Bhartia, Jubilant Capital Private Limited, Jubilant Securities Private Limited, Jaytee Private Limited, Jubilant Retail Holding Private Limited, Vam Holdings Limited, Nikita Resources Private Limited, Torino Overseas Limited, Cumin Investments Limited, Rance Investments & Holdings Limited, Jubilant Infrastructure Limited, Jubilant Life Sciences Limited (formerly Jubilant Organosys Limited), Jubilant Foodworks Limited, Asia Healthcare Development Limited, Jubilant Clinsys Limited (formerly Clinsys Clinical Research Limited), Jubilant Biosys Limited, Jubilant Chemsys Limited, Jubilant First Trust Healthcare Limited, Jubilant DraxImage Limited (formerly Draximage India Limited), Jubilant Innovation (India) Limited, Cadista Holdings Inc., Jubilant Cadista Pharmaceuticals inc. (formerly Cadista Pharmaceuticals inc.), Colvant Sciences, Inc., Jubilant Life Sciences Holdings, Inc. (formerly Clinsys Holdings inc.), Jubilant Clinsys Inc. (formerly Clinsys Clinical Research, Inc.), HSL Holdings Inc., Hollister-Stier Laboratories LLC, DAHI LLC, Jubilant Life Sciences (USA) Inc. (formerly Jubilant Organosys (USA) Inc.), Draximage LLC, Jubilant Draximage (USA) inc. (formerly Dspi inc., UsA), Deprenyl inc., UsA, Draxis Pharma LLC, Draxis Pharma Inc., Jubilant Discovery Services Inc, DAHI Animal Health (UK) Limited, Draximage (UK) Limited, Jubilant Pharma Pte. Limited, Jubilant Life Sciences International Pte. Limited (formerly Jubilant Organosys International Pte. Limited), Jubilant Biosys (Singapore) Pte. Limited, Jubilant Drug Development Pte. Limited, Jubilant Innovation Pte. Limited, Jubilant Life Sciences (Shanghai) Limited (formerly Jubilant Organosys (Shanghai) Limited), Draximage Limited, Cyprus, Draximage Limited, Ireland, Jubilant Pharma N.V., Jubilant Pharmaceuticals N.V., PSI supply N.V., Jubilant Innovation (BVI) Limited, Jubilant Life Sciences (BVI) Limited (formerly Jubilant Organosys (BVI) Limited), Jubilant Biosys (BVI) Limited, Jubilant DraxImage Inc. (formerly Draxis Specialty Pharmaceuticals Inc.), 6963196 Canada Inc., 6981364 Canada Inc., Jubilant

Innovation (USA) Inc., Jubilant Bhartia Foundation, Jubilant Enpro Private Limited, Enpro Exports Private Limited, Enpro Oil Private Limited, Tower Promoters Private Limited, U C Gas & Engineering Limited, Asia Infrastructure Development Company Private Limited, Western Drilling Contractors Private Limited, Jubilant Realty Private Limited, Jubilant Properties Private Limited, India Country Homes Private Limited, Jubilant E & P Ventures Private Limited, Jubilant Retail Private Limited, Jubilant Motorworks Private Limited, Jubilant Retail Consolidated Private Limited, B & M Hot Breads Private Limited, GPS Stock Brokers Private Limited, Dyno Enpro Oil Field Chemicals Private Limited, Jubilant Oil and Gas Private Limited, Jubilant Offshore Drilling Private Limited, Jubilant Energy (Kharsang) Private Limited, Jubilant Energy (NEPL-V) Private Limited, Focus Brands Trading India Private Limited, and Jubilant Life Sciences (Switzerland) AG, Schaffhausen.

13. A. Capacites, Stocks, Production and Turnover:

Notes:

a) Closing Stock has been arrived at afer considering Captve Consumptions.

b) Installed capacites are as certfed by the Management, being a technical matter and relied upon by the Auditors accordingly.

c) V.P. Latex/SBR Latex installed Capacity is on Wet basis.

d) Agri chemicals production is on tolling basis.

e) Diference in quanttatve tally represent material.

f) Turnover includes subsidy/export incentves.

g) Includes quanttes of discontnued business also.

14. Previous Year's figures have been regrouped/rearranged wherever considered necessary and are not comparable for the reason set out in Note No. 2 here in above.