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Notes to Accounts of Jindal Poly Films Ltd.
Mar 31, 2024
(q) Provisions, contingent liabilities and contingent assets
Provisions are recognised when there is a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
Prov''sions are measured at the estimated expenditure required to settle the present obligation, based on the most reliable evdence available at the reporting date, including the risks and uncertainties associated with the present obligation. Prov''sions are determined by discounting the expected future cash flows (representing the best estimate of the expenditure required to settle the present obligation at the balance sheet date) at a pre-tax rate that refects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost.
Any reimbursement that the Company can be v''rtually certain to collect from a third party with respect to the obligation is recognised as a separate asset. However, this asset may not exceed the amount of the related provsion.
All prov''sions are rev''ewed at each reporting date and adjusted to refect the current best estimate.
In those cases where the outflow of economic resources as a result of present obligations is considered improbable or remote, no liability is recognised.
Contingent liability is a possible obligation arising from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events but is not recognised because it is not possible that an outflow of resources embodying economic benefit will be required to settle the obligations or reliable estimate of the amount of the obligations cannot be made. The Company discloses the existence of
Contingent assets usually arise from unplanned or other unexpected events that give rise to the possibility of an inflow of economic benefits. Contingent assets are not recognised. However, when inflow of economic benefits is probable, related asset is disclosed.
(r) Operating Segments
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The accounting policies adopted for segment reporting are in conformity with the accounting policies adopted by the Company. As per Ind As 108 Operating Segments are identified based on the nature of products, the different risks and returns, being the performance measure of the Company. The company is engaged in the business of manufacture and distribution of Packaging Films (till August 2, 2022) and Nonwoven Fabrics. Further disclosure of segments based on geography by location of customers i.e. in India and outside India has been made.
(s) Income tax Current tax
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted in India, at the reporting date.
Current tax relating to items recognised outside statement of profit or loss is recognised (other comprehensive income). Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.
Current tax assets is offset against current tax liabilities if, and only if, a legally enforceable right exists to set off the recognised amounts and there is an intention either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Deferred tax
Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised. Deferred tax liabilities are generally recognised for all the taxable temporary differences.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.
Deferred tax relating to items recognised outside statement of profit or loss is recognised outside statement of profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
(t) Leases
Company as a lessee
The Company assesses if a contract is or contains a lease at inception of the contract. A contract is, or contains,
a lease if the contract conveys the right to control the use of an identified asset for a period time in exchange for consideration.
The Company recognizes a right-of-use asset and a lease liability at the commencement date, except for short-term leases of twelve months or less and leases for which the underlying asset is of low value, which are expensed in the statement of operations on a straight-line basis over the lease term.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease, or, if not readily determinable, the incremental borrowing rate specific to the company, term and currency of the contract. Lease payments can include fixed payments, variable payments that depend on an index or rate known at the commencement date, as well as any extension or purchase options, if the Company is reasonably certain to exercise these options. The lease liability is subsequently measured at amortized cost using the effective interest method and remeasured with a corresponding adjustment to the related right-of-use asset when there is a change in future lease payments in case of renegotiation, changes of an index or rate or in case of reassessments of options.
The right-of-use asset comprises, at inception, the initial lease liability, any initial direct costs and, when applicable, the obligations to refurbish the asset, less any incentives granted by the lessors. The right-of-use asset is subsequently depreciated, on a straight-line basis, over the lease term, if the lease transfers the ownership of the underlying asset to the Company at the end of the lease term or, if the cost of the right-of-use asset reflects that the lessee will exercise a purchase option, over the estimated useful life of the underlying asset. other are also subject to testing for impairment if there is an indicator for impairment. Variable lease payments not included in the measurement of the lease liabilities are expensed to the statement of operations in the period in which the events or conditions which trigger those payments occur.
Company as a lessor
Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Rental income from operating lease shall not be straight-lined, if escalation in rentals is in line with expected inflationary cost. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income.
(u) Cash and Cash Equivalents
Cash and cash equivalents comprise cash at bank and in hand, short-term deposits and highly liquid investments with an original maturity of three months or less which are readily convertible in cash and subject to insignificant risk of change in value.
(v) Government Grants
The Company may receive government grants that require compliance with certain conditions related to the Company''s operating activities or are provided to the company by way of financial assistance on the basis of certain qualifying criteria. Government grants are recognised at fair value when there is reasonable assurance that the grant will be received upon the company complying with the conditions attached to the grant. Accordingly, government grant :
(i) related to incurring specific expenditures are taken to the Statement of Profit and Loss on the same basis and in the same periods as the expenditures incurred and disclosed in other income.
(ii) related to Packaging Scheme of Incentives Government of Maharashtra are initially carried by setting up these grants as Deferred Government Grants and amortised/recognised in the statement of profit and loss on straight line method and disclosed in Other Income.
(iii) related to acquisition of property, plant & equipment are initially carried by setting up these grants as Deferred Government Grants and amortised/recognised in the statement of profit and loss on straight line method and netted off from depreciation expenses.
(iv) Government grants under Export Promotion Credit Guarantee Scheme (EPCG) related to duty saved on import of property, plant and equipment are initially carried by setting up this grant as "Deferred Government Grants" and credited to the statement of profit and loss on the basis of pattern of fulfilment of obligations associated with the grant received and shown under "Other Income".
(w) Earnings per share
Basic earnings per equity share is computed by dividing net profit or loss for the year attributable to the equity shareholders of the Company by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares, that have changed the number of equity shares outstanding, without a corresponding change in resources.
Diluted earnings per share is computed by dividing net profit or loss for the year attributable to the equity shareholders of the Company and weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares).
(x) Fair value measurement
In determining the fair value of its financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The methods used to determine fair value include discounted cash flow analysis, available quoted market prices and dealer quotes. All methods of assessing fair value result in general approximation of value, and such value may never actually be realized. For financial assets and liabilities maturing within one year from the Balance Sheet date and which are not carried at fair value, the carrying amounts approximate fair value due to the short maturity of these instruments.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability, if market participants would take those characteristics into account when pricing the asset or liability at the measurement date.
In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:
Level 1 inputs are quoted prices /net asset value (unadjusted) in active markets for identical assets or liabilities that the company can access at the measurement date;
Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and
Level 3 inputs are unobservable inputs for the asset or liability.
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial instruments also include derivative contracts such as foreign currency forward contracts and commodity futures contracts.
(y) Financial instruments
Initial recognition and measurement
Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual prov''sions of the financial instrument. Financial instrument (except trade receivables) are measured initially at fair value adjusted for transaction costs, except for those carried at fair value through profit or loss which are measured initially at fair value. Trade receivables are measured at their transaction price unless it contains a significant financing component in accordance with Ind AS 115 for pricing adjustments embedded in the contract. Subsequent measurement of financial assets and financial liabilities is described below:
Non-derivative financial assets
Subsequent measurement
i. Financial assets carried at amortised cost
A financial asset is measured at the amortised cost, if both the following conditions are met:
⢠The asset is held within a business model whose objective is to hold assets for collecting contractual
cash flows, and
⢠Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method.
ii. Financial assets at fair value through Profit & Loss (FVTPL)
Financial assets, which does not meet the criteria for categorization as at amortized cost or as FVOCI or the company has decided to classify, are classified as at FVTPL
Financial assets included within the FVTPL category are measured at fair value with all changes recognized in the Statement of Profit & Loss.
Impairment of financial assets
In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss for financial assets. ECL is the weighted-average of difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive, discounted at the original effective interest rate, with the respective risks of default occurring as the weights. When estimating the cash flows, the Company is required to consider:
⢠All contractual terms of the financial assets (including prepayment and extension) over the expected life of the assets.
⢠Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.
Trade receivables: In respect of trade receivables, the Company applies the simplified approach of Ind AS 109, which requires measurement of loss allowance at an amount equal to lifetime expected credit losses. Lifetime expected credit losses are the expected credit losses that result from all possible default events over the expected life of a financial instrument.
Other financial assets: In respect of its other financial assets, the Company assesses if the credit risk on those financial assets has increased significantly since initial recognition. If the credit risk has not increased significantly since initial recognition, the Company measures the loss allowance at an amount equal to 12-month expected credit losses, else at an amount equal to the lifetime expected credit losses.
When making this assessment, the Company uses the change in the risk of a default occurring over the expected life of the financial asset. To make that assessment, the Company compares the risk of a default occurring on the financial asset as at the balance sheet date with the risk of a default occurring on the financial asset as at the date of initial recognition and considers reasonable and supportable information, that is available without undue cost or effort, that is indicative of significant increases in credit risk since initial recognition. The Company assumes that the credit risk on a financial asset has not increased significantly since initial recognition if the financial asset is determined to have low credit risk at the balance sheet date.
De-recognition of financial assets: A financial asset is primarily de-recognised when the contractual rights to receive cash flows from the asset have expired or the Company has transferred its rights to receive cash flows from the asset.
Derivative financial instruments: In the ordinary course of business, the Company uses derivative financial instruments to reduce business risks which arise from its exposure to foreign exchange. The instruments are confined principally to forward foreign exchange contracts and these contracts do not generally extend beyond six months.
Derivatives are initially accounted for and measured at fair value from the date the derivative contract is entered into and are subsequently re-measured to their fair value at the end of each reporting period.
Non-derivative financial liabilities
Subsequent measurement: Subsequent to initial recognition, all non-derivative financial liabilities are measured at amortised cost using the effective interest method.
De-recognition of financial liabilities: A financial liability is de-recognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.
Offsetting of financial instruments: Financial assets and financial liabilities are offset, and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
(z) Financial guarantee contracts
Financial guarantee contracts are recognised as a financial liability at the time the guarantee is issued. The liability is initially measured at fair value and subsequently at the higher of (i) the amount determined in accordance with the expected credit loss model as per IndAS 109 and (ii) the amount initially recognised less, where appropriate, cumulative amount of income recognised in accordance with the principles of Ind AS 115. The fair value of financial guarantees is determined based on the present value of the difference in cash flows between the contractual payments required under the debt instrument and the payments that would be required without the guarantee, or the estimated amount that would be payable to a third party for assuming the obligations.
(aa) Standards issued but not yet effective
Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards under the companies (Indian Accounting Standards) Rules as issued from time to time. During the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the company.
18D Terms of repayments of non-current portion of borrowings :
(a) Loan of Rs. 11,545.90 lakhs (Previous year Rs. 13,552.87 lakhs)- Repayable in 11 fixed half yearly equal instalments (Prev''ous year 13 fixed half yearly equal instalments).
(b) Loan of Rs. 7,774.24 lakhs (Prev''ous year Rs. 9,538.52 lakhs)- converted into foreign currency loan in prev''ous year and repayable in 17 quarterly equal instalments (Prev''ous year 21 quarterly equal instalments).
(c) Loan of Rs. 9,846.99 lakhs (Prev''ous year Rs. 10,819.41 lakhs)- converted into foreign currency loan in prev''ous year and repayable in 29 quarterly instalment (Prev''ous year 1 quarterly instalment of Rs. 27.25 lakhs, and balance repayable in 32 quarterly equal instalments).
(d) Loan of Rs. Nil (Prev''ous year : Rs. 312.00 Lakhs) was fully repaid during the year (Prev''ous year 3 quarterly instalments).
(e) Loan of Rs. 9,572.81 lakhs (Prev''ous year Rs. 7,883.18 lakhs) was converted into foreign currency loan during the year and repayable in 14 fixed quarterly equal instalments (Prev''ous year 18 fixed quarterly equal instalments).
(f) Loan of Rs. 3,284.44 lakhs (Prev''ous year Rs. 8,333.33 lakhs ) was converted into foreign currency loan during the year and repayable in 16 fixed quarterly equal instalments (Prev''ous year 20 fixed quarterly equal instalments).
18E Rupee term loans from banks bear a floating rate of interest linked with marginal cost of funds based lending rate
of banks or repo rate plus applicable spread NIL (Prev''ous year- Spread ranging from 0.25% to 2.82%).
Foreign Currency Loans - Fixed rate loan with interest rate ranging from 0.84% to 5.5% (Prev''ous year fixed rate
0.84%) and floating rate loan with interest linked to EURIBOR plus spread of 1.84% (Prev''ous year- spread of 1.80%)
40.11 Description of risk exposures:
Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is exposed to various risks as follows -
Interest rate risk - The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.
Salary Increases - Actual salary increases will increase the Plan''s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.
Investment Risk - Since plan is funded therefore assets liabilities mismatch and actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.
Discount Rate : Reduction in discount rate in subsequent valuations can increase the plan''s liability.
Demographic Risk : This is the risk of variability of results due to unsystematic nature of decrements that includes mortality, withdrawals, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends on the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the employee benefit of a short career employee typically costs less per year as compared to a long service employee.
Note No. 41 : Related parties disclosures (As identified by the Company)
Description of related parties under Ind AS - 24 "Related party disclosures
A. Ultimate holding entity 1 SSJ Trust
B. Holding company
1 Concatenate Advest Advisory Private Limited (upto February 20, 2024)
2 Concatenate Flexi Films Advest Private Limited (w.e.f February 20, 2024)*
C. Wholly owned subsidiaries
1 Jindal Films India Limited
2 Jindal Imaging Limited
3 Jindal SMI Coated Products Limited (earlier known as Jindal Polypack Limited)
4 SMI Coated Products Limited (upto August 4, 2023 as merged with Jindal Polypack Limited)
5 Universus Poly & Steel Limited
6 Jindal Specialty Films Limited
7 Universus Commercial Properties Limited (w.e.f. July 20, 2022)
8 Global Nonwovens Limited (w.e.f. March 29, 2023)
9 Jindal Packaging Trading DMCC (liquidated w.e.f May 25, 2022)
10 JPF Netherlands Investment B.V. (w.e.f. July 21, 2023)
D. Subsidiary
1 JPFL Films Private Limited
E. Step down subsidiary
1 Jindal Nylon Films S.r.l. Italy (w.e.f. July 21, 2023)
2 Rexor SAS, France (w.e.f. July 21, 2023)
3 JPF API Laminates UK Limited (w.e.f. July 21, 2023)
4 SMI Coated Products Private Limited (from April 28, 2022 to August 4, 2023)
5 SMI Coated Products Industry LLC (from April 28, 2022 to August 4, 2023)
F. Fellow subsidiaries
1 Consolidated Finvest & Holdings Limited (upto February 20, 2024)
2 Universus Photo Imagings Limited (upto February 20, 2024)
Note No. 44 Disclosures of deferred Government grants / assistance / subsidies
44.1 Under the Package Scheme of Incentive 2013 approved by the Government of Maharashtra, the Company is entitled to industrial promotion subsidy to the extent of 100% of the fixed capital investment or to the extent of taxes paid to the State Government in next 20 years from the date of commercial production, whichever is lower. During the year, subsidy receivable under the above scheme aggregating Rs Nil (Previous year : Rs 8,126.38 lakhs) has been accounted by setting up these grants as Deferred Government Grants as "Non-Current/Current Liabilities" and amortised/recognised in the statement of profit and loss on straight line method over the useful life of related plant and machinery and disclosed in "Other Income".
44.2 Rs. 113.49 lakhs (Previous year : Rs. 1,928.94 lakhs) accounted as Deferred Government Grants for duty saved on import of capital goods and spares under the EPCG scheme. Under the scheme, the company is committed to export goods at the prescribed times of duty saved on import of capital goods over a specified period of time. In case such commitments are not met, the company would be required to pay the duty saved along with interest to the regulatory authorities. Such grants recognised are released to the statement of profit & loss based on fulfilment of related export obligations.
44.3 Non-woven fabrics division of the Company has received / receivable Rs. 1,565.90 lakhs (Previous year : Rs 950.10 lakhs) being subsidy for electricity tariff under Government of Maharashtra scheme for textile industry in respect of capital investment made in previous year and disclosed in Other income. (Refer note 29)
44.4 The Company is entitled to certain capital subsidy under TUFS scheme under State Textile Policy 2018-23. The Company has recognised the capital subsidy of Rs. 36,542.01 lakhs ( Previous year : Rs Nil) with the Government of Maharashtra for the expansion made in earlier year, in accordance with Ind AS 20. " Upon submission of the subsidy application during the year, the division has accounted for subsidy amortization as deduction from depreciation cost.
Note No. 47 : Segment information
47.1 Description of segments and principal activities
According to Ind AS 108, identification of operating segments is based on Chief Operating Decision Maker (CODM) approach for making decisions about allocating resources to the segment and assessing its performance. The Company''s Board of Directors rev''ews the results of each segment on quarterly basis. The Company''s board of directors uses earning before interest and tax (EBITA) to assess the performance of the operating segments. Segment information is presented in respect of the company''s key operating segments. The operating segments are based on the company''s management and internal reporting structure. During the prev''ous year, the company has transferred its packaging film business to its subsidiary company w.e.f August 2,2022.
The Company''s board examines the Company''s performance both from a product perspective and have identified two reportable segments of its business:
1 Packaging films (till August 2, 2022)
2 Nonwoven fabrics
Note No. 49 : Financial risk management
(a) 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 board of directors has established the processes to ensure that executive management controls risks through the mechanism of properly defined framework.
The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed by the board annually to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations. The Company is exposed to credit risk, liquidity risk, market risk, foreign currency risk and interest rate risk. The Company''s management oversees the management of these risks. The management reviews and agrees policies for managing each of these risks, which are summarised below.
(b) Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and investments in debt securities.
The carrying amount of financial assets represents the maximum credit exposure. The Company monitor credit risk very closely both in domestic and export market. The Management impact analysis shows credit risk and impact assessment as low.
Trade and other receivables
The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk of the industry and country in which customers operate.
The Company management has established a credit policy under which each new customer is analysed individually for creditworthiness before the Company''s standard payment and delivery terms and conditions are offered. The Company''s rev''ew includes market check, industry feedback, past financials and external ratings, if they are available, and in some cases bank references. Sale limits are established for each customer and revewed quarterly. Any sales exceeding those limits require appropriate approval.
The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk of the industry and country in which customers operate.
The Company establishes an allowance for impairment that represents its expected credit losses in respect of trade and other receivables. The management uses a simplified approach for the purpose of computation of expected credit loss for trade receivables.
Financial guarantee contracts
A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of a debt instrument.
The Company manages and controls credit risk by setting limits on the amount of risk it is willing to accept for individual entities within the group, and by monitoring exposures in relation to such limits. It is the responsibility of the Board of Directors to rev''ew and manage credit risk.
Investments
Investments are reviewed for any fair valuation loss on a periodic basis and necessary provision/fair valuation adjustments have been made based on the either fair valuation available or valuation carried by the independent valuer, where applicable and the management does not expect any investee entities to fail to meet its obligations. Where book value of any investment became negative, adequate provision for impairment has been provided in the books. Accordingly provision for impairment of investment of Rs 4.50 lakhs (Previous year Rs Nil).
Loans
Credit risk on loans is generally low as the said loans have been given to the group companies and no material impairment loss has been recognized against these loans. The Company management has analysed individually for creditworthiness before the loans are offered.
Cash and bank balances
Credit risk on cash and cash equivalent, deposits with the bank is generally low as the said deposits have been made with the banks who have been assigned high credit rating by international and domestic rating agencies. Receivable from Government
The Company''s receivables from the Government of India/State, credit risk is considered Nil hence, no impairment provision has been made in the books.
Others
Other than trade receivables and other receivables reported above, the Company has no other material financial assets which carries any significant credit risk.
(c) Liquidity risk
Liquidity risk is the risk that the Company 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 fallen due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining availability under committed credit lines.
Management monitors rolling forecasts of the Company''s liquidity position (comprising the undrawn borrowing facilities) and cash and cash equivalents on the basis of expected future cash flows. This is generally carried out at business division level and monitored through respective divisional office of the Company in accordance with practice and limits available with the Company. These limits vary to take into account requirement, future cash flow and the liquidity in which the entity operates. In addition, the Company''s liquidity management strategy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.
(a) Financing arrangements
The Company had access to the undrawn working capital facilities. These facilities may be drawn at any time and may be terminated by the bank without notice. Working capital facilities are in Indian rupee and in foreign currency and have an average maturity period of one year.
(b) Maturities of financial liabilities
The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date based on contractual undiscounted payments (excluding transaction cost on borrowings).
(d) 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 holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.
The Company uses derivatives like forward contracts to manage market risks on account of foreign exchange and various debt instruments on account of interest rates. All such transactions are carried out within the guidelines set by the Board of Directors.
(i) Foreign currency risk
The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD and EUR. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the company''s functional currency (Rs.). The risk is measured through a forecast of highly probable foreign currency cash flows. The objective of the hedges is to minimise the volatility of the Rs. cash flows of highly probable forecast transactions by hedging the foreign exchange inflows on regular basis. The Company also take help from external consultants who for views on the currency rates in volatile foreign exchange markets.
Currency risks related to the principal amounts of the Company''s foreign currency payables, have been partially hedged using forward contracts taken by the Company.
In respect of other monetary assets and liabilities denominated in foreign currencies, the Company''s policy is to ensure that its net exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates when necessary to address short-term balances.
Exposure to unhedged currency risk
The summary quantitative data about the Company''s exposure to unhedged currency risk as reported to the management of the Company is as follows
Note 1 First pari-passu charge on movable and immovable fixed assets (both present and future) located at Nasik, Maharashtra and second Pari-passu charge on current assets (both present and future).
Note 2 First ranking pari passu charge on all present and future movable and immovable assets of the borrower at its Nashik site in the state of Maharashtra in India (except the movable and immovable assets of the borrower pertaining to its global non woven division) as described in detail in the security documents attached.
Note 3 First pari passu charge over fixed assets of the Company, situated at village Mundegaon at village Mukane, Igatpuri, District Nasik in the state of Maharashtra "Nasik Plant")
(d) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the act read with Companies (Restriction on number of layers) Rule, 2017 during the year and in previous year.
(e) A) The Company has not advanced or loaned or invested (either from borrowed funds or share premium
or any other sources or kind of funds) to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediaries shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the ultimate beneficiaries during the year and in previous year;
B) The Company has not received any funds from any person or entity, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the ultimate beneficiaries during the year and in previous year.
(f) The Company has not traded or invested in crypto currency or virtual currency during the year and in previous year.
(g) The Company does not have any transaction, not recorded in the books of accounts that has been surrendered or disclosed as income during the year and in previous year in the tax assessments under the Income Tax Act, 1961.
(h) The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India. The Group has three CICs as part of the Group.
(i) Borrowings obtained by the Company from banks have been applied for the purposes for which such loans were taken.
Note No. 60
The financial assets of the Company have been growing on account of accumulated cash flows from its businesses and on account of the slump sale of its packaging (plastic) films business in the previous year which have been invested in securities and other financial instruments generating significant income from these investments which has been included in other income.
Note No. 61
The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the Company towards Provident Fund and Gratuity. The draft rules for the Code on Social Security, 2020 have been released by the Ministry of Labour and Employment on November 13, 2020.
The Company is in the process of assessing the additional impact on Provident Fund contributions and on Gratuity liability contributions and will complete their evaluation and give appropriate impact in the financial statements in the period in which the rules that are notified become effective.
Note No. 62
The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has been operated throughout the year for all transactions recorded in the accounting software and the audit trail feature has not been tampered with. However, the feature of recording of audit trail (edit log) facility was not enabled at database level to log any direct data changes for the accounting software used for maintaining the books of account in accounting software.
Note No. 63
Due to sale of packaging (plastic) films business on slump sale basis to a subsidiary with effect from August 2, 2022 current year figures, are not comparable with previous year. Figures for the previous year have been regrouped /rearranged wherever required, to conform current year classifications.
As per our report of even date attached
For and on behalf of the Board of Directors
For Singhi & Co. Vijender Kumar Singhal Rathi Binod Pal
Chartered Accountants (Whole Time Director & CFO) (Director)
Firm Registration No : 302049E DIN - 09763670 DIN - 00092049
Bimal Kumar Sipani Ashok Yadav
Partner (Company Secretary)
M No : 088926 ACS-14223
Date : May 30, 2024 Date : May 30, 2024
Place : Noida (Delhi NCR) Place : Gurugram
Mar 31, 2023
Provisions, contingent liabilities and contingent assets
Provisions are recognised when there is a present obligation (legal or constructive) as a result of a past event and it
is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a
reliable estimate can be made of the amount of the obligation.
Provisions are measured at the estimated expenditure required to settle the present obligation, based on the most
reliable evidence available at the reporting date, including the risks and uncertainties associated with the present
obligation. Provisions are determined by discounting the expected future cash flows (representing the best estimate of
the expenditure required to settle the present obligation at the balance sheet date) at a pre-tax rate that reflects current
market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is
recognised as finance cost.
Any reimbursement that the Company can be virtually certain to collect from a third party with respect to the obligation
is recognised as a separate asset. However, this asset may not exceed the amount of the related provision.
All provisions are reviewed at each reporting date and adjusted to reflect the current best estimate.
In those cases where the outflow of economic resources as a result of present obligations is considered improbable
or remote, no liability is recognised.
Contingent liability is a possible obligation arising from past events and the existence of which will be confirmed
only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
Company or a present obligation that arises from past events but is not recognised because it is not possible that an
outflow of resources embodying economic benefit will be required to settle the obligations or reliable estimate of the
amount of the obligations cannot be made. The Company discloses the existence of contingent liabilities in other notes
to financial statements.
Contingent assets usually arise from unplanned or other unexpected events that give rise to the possibility of an inflow
of economic benefits. Contingent assets are not recognised. However, when inflow of economic benefits is probable,
related asset is disclosed.
(m) Operating Segments.
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker. The accounting policies adopted for segment reporting are in conformity with the accounting policies
adopted by the Company. Operating Segments are identified based on the nature of products, the different risks
and returns, being the performance measure of the Company. Operating segments comprise Packaging Films and
Nonwoven Fabrics being performance measure of the Company, as required under Ind AS 108 (Operating Segments).
Further disclosure of segments based on geography by location of customers i.e. in India and outside India has been
made. Inter-segment revenue, if any, have been accounted for based on the transaction price agreed to between the
segments, which is primarily market based.
(n) Income tax
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively
enacted in India, at the reporting date.
Current tax relating to items recognised outside statement of profit or loss is recognised outside statement of profit
or loss (either in other comprehensive income or in equity). Current tax items are recognised in correlation to the
underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the
tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes
provisions where appropriate.
Current tax assets is offset against current tax liabilities if, and only if, a legally enforceable right exists to set off the
recognised amounts and there is an intention either to settle on a net basis, or to realise the asset and settle the liability
simultaneously.
Deferred tax
Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and
liabilities and their carrying amounts for financial reporting purposes at the reporting date.
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits
and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be
available against which the deductible temporary differences, and the carry forward of unused tax credits and unused
tax losses can be utilised. Deferred tax liabilities are generally recognised for all the taxable temporary differences.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised.
Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has
become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset
is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted
at the reporting date.
Deferred tax relating to items recognised outside statement of profit or loss is recognised outside statement of profit
or loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the
underlying transaction either in OCI or directly in equity.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
(o) Leases
Company as a lessee
The Company assesses if a contract is or contains a lease at inception of the contract. A contract is, or contains,
a lease if the contract conveys the right to control the use of an identified asset for a period time in exchange for
consideration.
The Company recognizes a right-of-use asset and a lease liability at the commencement date, except for short-term
leases of twelve months or less and leases for which the underlying asset is of low value, which are expensed in the
statement of operations on a straight-line basis over the lease term.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement
date, discounted using the interest rate implicit in the lease, or, if not readily determinable, the incremental borrowing
rate specific to the company, term and currency of the contract. Lease payments can include fixed payments, variable
payments that depend on an index or rate known at the commencement date, as well as any extension or purchase
options, if the Company is reasonably certain to exercise these options. The lease liability is subsequently measured
at amortized cost using the effective interest method and remeasured with a corresponding adjustment to the related
right-of-use asset when there is a change in future lease payments in case of renegotiation, changes of an index or
rate or in case of reassessments of options.
The right-of-use asset comprises, at inception, the initial lease liability, any initial direct costs and, when applicable, the
obligations to refurbish the asset, less any incentives granted by the lessors. The right-of-use asset is subsequently
depreciated, on a straight-line basis, over the lease term, if the lease transfers the ownership of the underlying asset to
the Company at the end of the lease term or, if the cost of the right-of-use asset reflects that the lessee will exercise a
purchase option, over the estimated useful life of the underlying asset. other are also subject to testing for impairment
if there is an indicator for impairment. Variable lease payments not included in the measurement of the lease liabilities
are expensed to the statement of operations in the period in which the events or conditions which trigger those
payments occur. In the statement of financial position right-of-use assets and lease liabilities are classified respectively
as part of property, plant and equipment and short-term/long-term debt.
(p) Cash and Cash Equivalents
Cash and cash equivalents comprise cash at bank and in hand, short-term deposits and highly liquid investments with
an original maturity of three months or less which are readily convertible in cash and subject to insignificant risk of
change in value.
For the purposes of the Statement of Cash Flow, cash and cash equivalents is as defined above, net of outstanding
bank overdrafts. In the balance sheet, bank overdrafts are shown within borrowings in current liabilities.
(q) Government Grants
The Company may receive government grants that require compliance with certain conditions related to the Company''s
operating activities or are provided to the Company by way of financial assistance on the basis of certain qualifying
criteria. Government grants are recognised at fair value when there is reasonable assurance that the grant will be
received upon the Company complying with the conditions attached to the grant. Accordingly, government grant :
(i) related to incurring specific expenditures are taken to the Statement of Profit and Loss on the same basis and
in the same periods as the expenditures incurred and disclosed in other income.
(ii) related to Packaging Scheme of Incentives Government of Maharashtra are initially carried by setting up these
grants as Deferred Government Grants and amortised/recognised in the statement of profit and loss on straight
line method and disclosed in Other Income.
(iii) related to acquisition of property, plant & equipment are initially carried by setting up these grants as Deferred
Government Grants and amortised/recognised in the statement of profit and loss on straight line method and
netted off from depreciation expenses.
(iv) Government grants under Export Promotion Credit Guarantee Scheme (EPCG) related to duty saved on import
of property, plant and equipment are initially carried by setting up this grant as âDeferred Government Grantsâ
and credited to the statement of profit and loss on the basis of pattern of fulfilment of obligations associated
with the grant received and shown under âOther Incomeâ.
(r) Earnings per share
Basic earnings per equity share is computed by dividing net profit or loss for the year attributable to the equity
shareholders of the Company by the weighted average number of equity shares outstanding during the year. The
weighted average number of equity shares outstanding during the year and for all periods presented is adjusted for
events, such as bonus shares, other than the conversion of potential equity shares, that have changed the number of
equity shares outstanding, without a corresponding change in resources.
Diluted earnings per share is computed by dividing net profit or loss for the year attributable to the equity shareholders
of the Company and weighted average number of equity shares considered for deriving basic earnings per equity
share and also the weighted average number of equity shares that could have been issued upon conversion of all
dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the
equity shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares).
(s) Fair value measurement
In determining the fair value of its financial instruments, the Company uses a variety of methods and assumptions that
are based on market conditions and risks existing at each reporting date. The methods used to determine fair value
include discounted cash flow analysis, available quoted market prices and dealer quotes. All methods of assessing fair
value result in general approximation of value, and such value may never actually be realized. For financial assets and
liabilities maturing within one year from the Balance Sheet date and which are not carried at fair value, the carrying
amounts approximate fair value due to the short maturity of these instruments.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date, regardless of whether that price is directly observable or
estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes
into account the characteristics of the asset or liability, if market participants would take those characteristics into
account when pricing the asset or liability at the measurement date.
In addition, for financial reporting purposes, fair value measurements are categorized into Level 1,2 or 3 based on the
degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair
value measurement in its entirety, which are described as follows:
Level 1 inputs are quoted prices /net asset value (unadjusted) in active markets for identical assets or liabilities that
the company can access at the measurement date;
Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or
liability, either directly or indirectly; and
Level 3 inputs are unobservable inputs for the asset or liability.
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity. Financial instruments also include derivative contracts such as foreign currency forward
contracts and commodity futures contracts.
(t) Financial instruments
Initial recognition and measurement
Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions
of the financial instrument. Financial instrument (except trade receivables) are measured initially at fair value adjusted
for transaction costs, except for those carried at fair value through profit or loss which are measured initially at fair
value. Trade receivables are measured at their transaction price unless it contains a significant financing component in
accordance with Ind AS 115 for pricing adjustments embedded in the contract. Subsequent measurement of financial
assets and financial liabilities is described below:
Subsequent measurement
i. Financial assets carried at amortised costâ
A financial asset is measured at the amortised cost, if both the following conditions are met:
⢠The asset is held within a business model whose objective is to hold assets for collecting contractual cash
flows, and
⢠Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal
and interest (SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised cost using the
effective interest rate (EIR) method.
ii. Investments in equity instrumentsâ
Investments in equity instruments, where the Company has opted to classify such instruments at fair value
through prfit and loss (FVTPL) are measured at fair value through profit and loss. Dividends on such investments
are recognised in profit or loss unless the dividend clearly represents a recovery of part of the cost of the
investment.
iii. Financial assets at fair value through Profit & Loss (FVTPL)
Financial assets, which does not meet the criteria for categorization as at amortized cost or as FVOCI or the
company has decided to classify, are classified as at FVTPL
Financial assets included within the FVTPL category are measured at fair value with all changes recognized in
the Statement of Profit & Loss.
Compound Financial Instrument
The component parts of compound instruments issued by the Company are classified separately as financial liabilities
and equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability
and an equity instrument. Conversion option that will be settled by the exchange of a fixed amount of cash or another
financial asset for a fixed number of the Company''s own equity instruments is an equity instrument.
At the date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for
similar non-convertible instruments. This amount is recorded as a liability on an amortised cost basis using the effective
interest method until extinguished upon conversion or at the instrument''s maturity date.
The conversion option classified as equity is determined by deducting the amount of the liability component from the
fair value of the compound instrument as a whole. The conversion option classified as equity will remain in equity
until the conversion option is exercised, in which case, the balance recognised in equity will be transferred to other
component of equity. When the conversion option remains unexercised at the maturity date of the convertible note,
the balance recognised in equity will be transferred to retained earnings. No gain or loss is recognised in profit or loss
upon conversion or expiration of the conversion option.
Impairment of financial assets
In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and
recognition of impairment loss for financial assets. ECL is the weighted-average of difference between all contractual
cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company
expects to receive, discounted at the original effective interest rate, with the respective risks of default occurring as the
weights. When estimating the cash flows, the Company is required to consider:
⢠All contractual terms of the financial assets (including prepayment and extension) over the expected life of the
assets.
⢠Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual
terms.
Trade receivables: In respect of trade receivables, the Company applies the simplified approach of Ind AS 109, which
requires measurement of loss allowance at an amount equal to lifetime expected credit losses. Lifetime expected
credit losses are the expected credit losses that result from all possible default events over the expected life of a
financial instrument.
Other financial assets: In respect of its other financial assets, the Company assesses if the credit risk on those
financial assets has increased significantly since initial recognition. If the credit risk has not increased significantly
since initial recognition, the Company measures the loss allowance at an amount equal to 12-month expected credit
losses, else at an amount equal to the lifetime expected credit losses.
When making this assessment, the Company uses the change in the risk of a default occurring over the expected life
of the financial asset. To make that assessment, the Company compares the risk of a default occurring on the financial
asset as at the balance sheet date with the risk of a default occurring on the financial asset as at the date of initial
recognition and considers reasonable and supportable information, that is available without undue cost or effort, that
is indicative of significant increases in credit risk since initial recognition. The Company assumes that the credit risk on
a financial asset has not increased significantly since initial recognition if the financial asset is determined to have low
credit risk at the balance sheet date.
De-recognition of financial assets: A financial asset is primarily de-recognised when the contractual rights to receive
cash flows from the asset have expired or the Company has transferred its rights to receive cash flows from the
asset.
Derivative financial instruments: In the ordinary course of business, the Company uses derivative financial
instruments to reduce business risks which arise from its exposure to foreign exchange. The instruments are confined
principally to forward foreign exchange contracts and these contracts do not generally extend beyond six months.
Derivatives are initially accounted for and measured at fair value from the date the derivative contract is entered into
and are subsequently re-measured to their fair value at the end of each reporting period.
Non-derivative financial liabilities
Subsequent measurement: Subsequent to initial recognition, all non-derivative financial liabilities are measured at
amortised cost using the effective interest method.
De-recognition of financial liabilities: A financial liability is de-recognized when the obligation under the liability is
discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender
on substantially different terms or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference
in the respective carrying amounts is recognised in the statement of profit or loss.
Offsetting of financial instruments: Financial assets and financial liabilities are offset, and the net amount is reported
in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an
intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
(u) Standards issued but not yet effective
Ministry of Corporate Affairs (âMCAâ) notifies new standard or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies
(Indian Accounting Standards) Amendment Rules, 2023, applicable from April 1, 2023, as below:
i. Ind AS 1 - Material accounting policies - The amendments mainly related to shifting of disclosure of
erstwhile âsignificant accounting policiesâ in the notes to the financial statements to material accounting policy
information requiring companies to reframe their accounting policies to make them more âentity specific.
This amendment aligns with the âmaterialâ concept already required under International Financial Reporting
Standards (IFRS).â
ii. Ind AS 8 - Definition of accounting estimates - The amendments specify definition of ''change in accounting
estimate'' replaced with the definition of ''accounting estimates''.â
iii. Ind AS 12 - Income taxes - Annual Improvements to Ind AS (2021) - The amendment clarifies that in
cases of transactions where equal amounts of assets and liabilities are recognised on initial recognition, the
initial recognition exemption does not apply. Also, If a company has not yet recognised deferred tax asset and
deferred tax liability on right-of-use assets and lease liabilities or has recognised deferred tax asset or deferred
tax liability on net basis, that company shall have to recognise deferred tax assets and deferred tax liabilities on
gross basis based on the carrying amount of right-of-use assets and lease liabilities existing at the beginning
of 1 April 2022. â
The Company does not expect aforesaid amendments to have significant impact on aforesaid financial
statements.
Mar 31, 2021
During the year, the company has enhanced capacity of packaging films products and started commercial production w.e.f. September 12, 2020 (Previous year : capacity of non-woven products was enhanced and started commercial production w.e.f March 01,2020).
Refer 39 for interest capitalised during the year.
There are no restrictions as to the title of any of the items except freehold land amounting Rs. 45.70 lakhs (Previous year : Rs 45.70 Lakhs) which is pending for registration in the name of the Company. Moreover, lands are under process of reconciliation with title deeds.
For assets pledged and hypothecated against borrowings, refer note no. 23.
The Company has given on operating lease the following assets namely freehold land , machinery ; rental income from which amounting Rs. 55.32 lakhs (Previous year : Rs. 56.19 lakhs ) are recognised in other income (refer note 30). Further refer note 53.2 for maturity analyses of rental income.
3C.1 Intangible assets are purchased assets with finite useful lives which are amortised using straight line method over their useful lives.
3C.2 There are no restrictions as to the title of any of the items included in intangible assets.
3C.3 # Refer Note 57
3C (ii) Intangibles under development as on March 31, 2021
âIntangibles under development as at March 31, 2021 is Rs. Nil.
No addition to or transfers from intangibles under development during the year ended March 31, 2021.â
3C (ii) Intangibles under development as on March 31, 2020
Intangibles under development as at March 31, 2020 is Rs. Nil.
No addition were made to intangibles under development during the year ended March 31, 2020.
Rs. 367.27 lakhs has been capitalised and transferred to intangibles during the year ended March 31,2020.
Intangibles under development as at March 31, 2019 was Rs. 367.27 lakhs.
Refer note no. 2 for accounting policy on inventories and note no. 23 for hypothecation of inventories.
Raw Material includes Goods in transit (in lakhs) 6,676.37 4,166.19
Write down of inventories by Rs Nil (Previous year : Rs 778.06 Lakhs) due to quality deterioration/defective products, were recognised as expense during the year and included in ''Changes in inventories of finished goods, stock-in-trade and work-in-progress'' in Statement of Profit and Loss.
â(i) âSecured by first pari passu charge over immovable properties including land and buildings and movable & fixed assets of packaging films business of the Company, situated at village Mundegaon at village Mukane (iii) Igatpuri, District Nasik in the state of Maharashtra.â
â(ii) Secured by first pari passu charge over immovable properties including land and buildings and movable fixed
nuic to me oianuaiune nudnudi oiaiemeni
& assets of Nonwovens Fabrics division of the Company, situated at village Mundegaon at village Mukane, Igat
(iv) puri, District Nasik in the state of Maharashtra.
(i) & Foreign currency term loans aggregating Rs 53,795.61 Lakhs (Previous Year Rs 58,404.07 Lakhs) are gua
(ii) ranteed by Euler Hermes Aktiengesellschaft, Germany.
Terms of Repayments of Non-Current portion of Borrowings :
(i) âRs 5,591.23 Lakhs (Previous Year Rs 6,471.09 Lakhs )- Repayable in 10 Fixed half yearly equal installments (Previous Year 12 Fixed half yearly equal installment).
(ii) Rs16,355.88Lakhs(PreviousYearRs18,105,34Lakhs)-Repayablein26installments(PreviousYear30installment). Rs 14,819.46 Lakhs (Previous Year Rs 15,666.87)- Repayable in 18 fixed half yearly equal installments (Previous Year 19 installment).
(iii) Rs 1,980.99 Lakhs (Previous Year Rs NIL)- Repayble in 4 fixed quarterly installments (Previous year NIL).
Rs 17,029.04 Lakhs (Previous Year Rs 13,559.14)- Repayable in 17 fixed half yearly equal installments (Previous Year 19 installments).â
(iv) Rs 2,757.88 Lakhs (Previous year 6,437.44 Lakhs ) repayable in 3 quarterly installments (Previous Year 7 installments), Rs 1,144.00 Lakhs (Previous Year 6,250.00 Lakhs ) repayable in 11 fixed quarterly equal installments (Previous Year 15 installments).
Secured by hypothecation of all stocks of raw materials, semi finished goods, finished goods, goods in transit, stores and spares and book debts of the packaging films business of the company .These are further secured by way of second pari-pasu charge on immovable & movable properties of the packaging films business of the company situated at Gulaothi (U.P.) and Nasik (Maharashtra).
Secured by first charge by way of hypothecation of stocks of raw material, semi finished and finished goods and consumable stores, spares and book debts and receivables both present and future of the photographic division of the company, ranking pari-pasu with working capital loans sanctioned by other participating banks for photographic division of the Company.
âSecured by way of hypothecation of all stocks of raw materials, work in process, finished goods, stores and spares, book debts and others movables current assets including books -debts, bills whether documentary or clean, both present and future of Non Wovens Fabrics Division of the Company. These are further secured by way of second pari-pasu charge on all fixed assets of the said division and collaterally secured by corporate guarantee given by the Company before amalgamation of Nonwoven Fabrics Division with the Company. Further loan from one bank is secured by way of Subservient charge by way of hypothecation on current assets and movable fixed assets of the Nonwoven Fabrics Division of the Company both present and future and collaterally secured by corporate guarantee given by the Company before amalgamation of Nonwoven Fabrics Division with the Company.â
*There have been no transactions involving Equity shares or Potential Equity shares between the reporting date and the date of approval of these financial statements that would have an impact on the outstanding weighted average number of equity shares as at the year end.
Note No. 39 : Borrowing Cost capitalised
During the year borrowing cost amounting Rs. 442.77 Lakhs (Previous year : Rs. 1,126.19 Lakhs) has been debited to capital-work-in-progress/capitalized by the company. The rate used to determine the amount of borrowing cost capitalised is 7.55% per annum (Previous year 9.86% per annum) which is a weighted average interest rate applicable to company''s borrowings.
41.11 Description of risk exposures:
âValuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is exposed to various risks as follow -
Salary Increases- Actual salary increases will increase the Plan''s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.
Investment Risk - If Plan is funded then assets liabilities mismatch & actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.
Discount Rate : Reduction in discount rate in subsequent valuations can increase the plan''s liability. Demographic Risk : This is the risk of variability of results due to unsystematic nature of decrements that includes mortality, withdrawals, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends on the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the employee benefit of a short career employee typically costs less per year as compared to a long service employee.â
45.1 Under the Package Scheme of Incentive 2007/2013 approved by the Government of Maharashtra, the Company is entitled to industrial promotion subsidy to the extent of 100% of the fixed capital investment or to the extent of taxes paid to the State Government in next 7 years from the date of commercial production, whichever is lower. During the year, subsidy receivable under the above scheme aggregating Rs 12,966.89 Lakhs (Previous year : Rs 11,242.55 Lakhs) has been accounted by setting up these grants as Deferred Government Grants as âNon-Current/Current Liabilitiesâ and amortised/recognised in the statement of profit and loss on straight line method over the useful life of related plant and machinery and disclosed in âOther Income (other gains/(losses))â.
45.2 Rs. 1,322.36 Lakhs (Previous year : Rs. 1,687.30 Lakhs) accounted as Deferred Government Grants for duty saved on import of capital goods and spares under the EPCG scheme. Under the scheme, the company is committed to export goods at the prescribed times of duty saved on import of capital goods over a specified period of time. In case such commitments are not met, the company would be required to pay the duty saved along with interest to the regulatory authorities. Such grants recognised are released to the statement of profit & loss based on fulfillment of related export obligations.
45.3 Rs. 246.77 Lakhs (Previous year : Rs. 491.06 Lakhs) as subsidy under Technology Upgradation Funded Scheme (TUFS) by the Ministry of Textile (Government of India) for Nonwoven Project received /receivable in the form of reimbursement of interest paid to the lending banks /agencies for the loan disbursed and accordingly same has been netted off from the interest expenses in respective year, to the extent charged during the financial year.
45.4 Rs. 277.87 Lakhs (Previous year : Rs. 466.03 Lakhs) as interest subsidy on long term loans to Nonwoven Project granted by Government of Maharashtra under Textile Policy, which has also been netted off from the interest expense, to the extent charged during the financial year.
45.5 Non-woven fabrics division of the Company has received Rs. 1,199.51 lakhs (Previous year : Nil) being subsidy for electricity tariff under Government of Maharashtra scheme for textile industry in respect of capital investment made in previous year and disclosed in Other income.
45.6 The Company is entitled to capital subsidy under TUFS scheme amounting to Rs. 2770.60 lakhs approx. The Company has not recognised the same due to absence of reasonable assurance that the grant will be received upon the Company complying with the conditions attached to the subsidy. Same shall be recognised after complying with all conditions attached to the subsidy.
Note No. 46 Trade Receivables include Rs. 8.90 lakhs (Previous year : Rs. 38.06 lakhs) under litigation, against which legal cases are pending in various Courts for recovery. The same are considered good and realizable in the opinion of the management.
Note No. 47 Disclosure Under Ind AS 7
Disclosure of changes in liabilities arising from financing activities, including both cash and non-cash changes :
For the year ended March 31, 2021
48.1 Description of segments and principal activities
Segment information is presented in respect of the company''s key operating segments. The operating segments are based on the company''s management and internal reporting structure.
The company''s board examines the Company''s performance both from a product perspective and have identified two reportable segments of its business:
1 Packaging Films
2 Nonwoven Fabrics
The Company''s Board of Directors reviews the results of each segment on a quarterly basis. The company''s board of directors uses earning before interest and tax (EBITA) to assess the performance of the operating segments.
In case of Packaging films [Previous year : Packaging films and Photographic Segment (since ceased)], no single customer has contributed 10% or more to their respective segment''s revenue for both 2020-21 and 2019-20.
In case of Nonwoven Fabrics Segment, two major customers (Previous year : three major customers) who individually account for more than 10% each of the revenue aggregating Rs 24,176 Lakhs (Previous year : Rs. 23,761 Lakhs) of that segment''s total revenues.
are traded in the stock exchanges is valued using the closing price as at the reporting period.
Level 2: The fair value of financial instruments that are not traded in an active market (example over the counter contracts, derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a net asset value or valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.
There are no transfers between level 1 and level 2 during the year.
(b) Valuation technique used to determine fair value
âSpecific valuation techniques used to value financial instruments include:
- the use of quoted market prices or dealer quotes for similar instruments.
-the fair value of forward foreign exchange contracts is determined using forward exchange rates provided by the respective bank at the balance sheet date.
- the fair value of the remaining financial instruments is determined using discounted cash flow analysis.
All of the resulting fair value estimates are included in level 2 or level 3, where the fair values have been determined based on present values and the discount rates used were adjusted for counterparty or own credit risk.â
Note No. 50 Financial Risk Management
(a) Risk Management Framework
âIn the ordinary course of business, the Company is exposed to a different extent to a variety of financial risks: foreign currency risk, interest rate risk, liquidity risk, price risk and credit risk. In order to minimize any adverse effects on the financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts are entered to hedge certain foreign currency risk exposures. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments.
This note explains the sources of risk which the Company is exposed to and how it manages the risk.â
(b) Credit Risk
Financial loss to the Company, arising, if a customer or counterparty to a financial instrument fails to meet its contractual obligations principally from the Company''s receivables from customers and investments in debt securities. The carrying amount of financial assets represents the maximum credit exposure. The Company monitor credit risk closely both in domestic and export market.
âThe Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk of the industry and country in which customers operate. The Company Management has established a credit policy under which each new customer is analysed individually for creditworthiness before the Company''s standard payment and delivery terms and conditions are offered. Sales credit limits are set up for each customer and reviewed periodically. The credit risk from loans to other entities (related/non-related) is managed in accordance with the Company''s fund management policy that includes parameters of safety, liquidity and post-tax returns. The Company''s review includes market check, industry feedback, past financials and external ratings, if they are available, and in some cases bank reference checks are also done.
The Company creates allowances for impairment that represents its expected credit losses in respect of trade and other receivables and there are no significant trade receivables due for more than six months from the reporting date. The management uses a simplified approach for the purpose of computation of expected credit loss for trade receivables.â
During the year, the Company has made no write-offs of trade receivables, it does not expect to receive future cash flows or recoveries from collection of cash flows previously written off. The Company management also pursue all legal option for recovery of dues wherever necessary based on its internal assessment
Investments are reviewed for any fair valuation loss on a periodic basis and necessary provision/fair valuation adjustments have been made based on the valuation carried by the management to the extent of available sources and the management does not expect any investee entities to fail to meet its obligations.
(c) Liquidity Risk
Liquidity risk is the risk that the Company 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 fallen due. The Company''s liquidity position is carefully monitored and managed. The Company has in place a detailed budgeting and cash forecasting process to help ensure that it has adequate cash available to meet its payment obligations.
The following table provides details of the remaining contractual maturity of the Company''s financial Liabilities. It has been drawn up based on the undiscounted cash flows and the earliest date on which the Company can be required to pay. The table includes only principal cash flows.
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices mainly comprise three types of risk: currency rate risk, interest rate risk and other price risks. Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. This is based on the financial assets and financial liabilities held as at March 31, 2021 and March 31, 2020. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return. The Company uses derivatives like forward contracts to manage market risks on account of foreign exchange.
Currency Risk
The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD and Euro. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the company''s functional currency (Rupees). Currency risks related to the principal amounts of the Company''s foreign currency payables, have been partially hedged using forward contracts taken by the Company.
âThe Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The primary objective of the Company''s capital management is to maximize the shareholder value. The Company''s primary objective when managing capital is to ensure that it maintains an efficient capital structure and healthy capital ratios and safeguard the Company''s ability to continue as a going concern in order to support its business and provide maximum returns for shareholders. The Company also proposes to maintain an optimal capital structure to reduce the cost of capital. No changes were made in the objectives, policies or processes during the year ended March 31, 2021 and March 31, 2020.
For the purpose of the Company''s capital management, capital includes issued capital, share premium and all other equity reserves. Net debt includes, interest bearing loans and borrowings, trade and other payables less cash and short term deposits. The Company monitors capital using gearing ratio, which is net debt divided by total capital as under:â
56.1 Events after the Balance Sheet: The Board of Directors have recommended a dividend of Rs. 2.00 (Previous year : Rs. 1.00) per equity share aggregating Rs. 875.37 Lakhs (Previous year : Rs. 437.86 Lakhs) for the financial year ended March 31,2021 and the same is subject to approval of shareholders at the ensuing Annual General Meeting.
56.2 COVID - 19 pandemic has caused serious disruption on the global economic and business environment. There is a huge uncertainty with regard to its impact which cannot be reasonably determined at this stage. However, the Company has evaluated and considered to the extent possible the likely impact that may arise from COVID-19 pandemic as well as all event and circumstances upto the date of approval of these financial statements on the carrying value of its assets and liabilities as on March 31,2021. Based on the current indicators of future economic conditions, the Company estimates to recover the carrying amount of its assets. The Company has adequate liquidity to discharge its obligations. These estimates are subject to uncertainty and may be affected by the severity and duration of the pandemic. The Company is continuously monitoring any material changes in future economic conditions.
Note No. 57 : Scheme of Arrangement in previous year
âThe Board of Directors of the Company at its meeting held on November 12, 2018 has considered and approved a Scheme of arrangement between the Company and its wholly owned subsidiary company, Jindal Photo Imaging Limited (now known as Universus Photo Imagings Limited) for demerger of Photo business division of the Company with appointed date i.e. April 01, 2019. The Composite Scheme ofArrangement (ââthe Schemeââ) has been filed with Honourable National Company Law Tribunal (NCLT) under the provisions of Section 230-233 and other applicable provisions of the Companies Act, 2013 and rules made there under. The said Scheme has been approved vide NCLT Order dated December 09, 2019. The scheme has been effective w.e.f. December20,2019andaccordinglynecessaryaccountingadjustmentswere madeinprevious year. As per the Scheme, all related assets, liabilities as defined in the Scheme and other obligations forming part of, or relating to or appertaining to or attributable to the Photo division identified as Photographic products business of the Company and strategic investment in JPF Netherland BV, Amsterdam, investment in the units of mutual fund as of the appointed date i.e. April 01, 2019 have been transferred to Jindal Photo Imaging Limited (now known as Universus Photo Imagings Limited).â
The Accounting effect of this scheme of arrangement in the Financial statements has been given as under:-
(a) Pursuant to the Scheme, all assets, liabilities, other obligations and unabsorbed depreciation pertaining to the Photo Division and strategic investment in JPF Netherland BV, Amsterdam, investment in the units of mutual fund were transferred to Jindal Photo Imaging Limited (now known as Universus Photo Imagings Limited) at book value with effect from the appointed date viz. April 01,2019.
(b) Jindal Photo Imaging Limited (now known as Universus Photo Imagings Limited) has allotted 1,09,46,604 Equity Shares of Rs. 10/- each, fully paid up, to the shareholders of the Company in the ratio of 1:4. The pre-demerger Capital of Jindal Photo Imaging Limited (now known as Universus Photo Imagings Limited) Rs. 5.00 Lakhs i.e. 50,000 Equity Shares of Rs. 10/- each, fully paid up, held by the Company were cancelled pursuant to the Scheme.
(d) Pursuant to issuances of shares, referred in para (b) above, Jindal Photo Imaging Limited (now known as Universus Photo Imagings Limited) ceases to be a subsidiary of the Company w.e.f. appointed date i.e. April 01,2019.
Note No. 58 : Figures for the previous year have been regrouped /rearranged wherever required, to conform current year classifications.
The accompanying notes are an integral part of the Standalone Financial Statements
Mar 31, 2018
1. Leasehold Land includes 17 Canal land situated in Sambha (J & K), having original value of Rs. 25.50 Lacs (Previous Year Rs 25.50 Lacs), allotment for which has been unilaterally cancelled by J & K State Industrial Development Corporation Limited. The Company has filed an appeal before Honâble District Court for restoration of the lease in favour of the Company. The Management expects favourable decision, hence no adjustment done in the carrying value of the leasehold land.
2. Gross carrying amount as at 1st April 2017 includes assets acquired on amalgamation, pursuant to the scheme of amalgamation of Global Nonwovens Limited (âAmalgamating Companyâ), a wholly owned subsidiary with Jindal Poly Films Limited (âAmalgamated Companyâ). The scheme is effective from Appointed Date i.e. 1st April, 2015, accordingly figures of gross carrying book value and accumulated depreciation for the year ended 31st March 2017 has been recasted giving effect of said amalgamation, for detail Refer Note36.
Notes
3. With the issuance of new shares by JPF Netherlands B V (JPF NL) to other investor, JPF NL ceased to be subsidiary of the Company w.e.f. 29th December 2017 (shareholding of Company in JPF NL has been reduced to 49.47%). The dilution of the Companyâs interest in JPF NL constituted a deemed loss of control of the Companyâs equity interest in said subsidiary. This has resulted in JPF NL being an associate of the Company w.e.f. 29th December 2017.
4. During the year, M/s Hindustan Powergen Limited has been merged with other entity due to effectiveness of the scheme of amalgamation. Pursuant to the scheme of amalgamation, shares of M/s Hindustan Powergen Limited have been cancelled but due to negative net worth, no shares in consideration been allotted in the surviving amalgamated entity, accordingly investment in the said company has been written off in the books of account.
4. In earlier years, Jindal Poly Films Limited (JPFL) has invested in Zero Percent Redeemable Preference Shares having carrying value as at 1st April 2017 of Rs. 25007.28 Lacs of Jindal India Powertech Limited (JIPL) which was the holding company of Jindal India Thermal Power Limited (JITPL). JPFL has considered investment in Zero percent Redeemable Preference Shares of Jindal India Powertech Limited as quasi capital under Ind AS 109 being investment in group entity. Accordingly amortised cost of effective portion of debt and equity has been segregated considering 12 % discounting rate as follows :
6. The Management has proposed to disposed off certain plant and machineries, accordingly same has been classified as Non Current Assets Held for Sales and carried at estimated net realisable value aggregating Rs. 84 Lacs.
7. Includes receivables from related parties Rs 443.74 Lacs (Previous Year Rs. 192.38 Lacs)
(a) Ordinary Shares allotted as fully paid pursuant to contract(s) without payment being received in cash during the period of five years.
17387000 Equity Shares of Rs 10/- each, issued pursuant to the Scheme of Arrangement (being effective w.e.f. 1st April 2014) between Jindal Photo Limited (Demerged Company) and Jindal Poly Films Limited (Resulting Company), for demerger of Business of Manufacture, production, sale and distribution of photographic products of demerged company into the Resulting Company.
(b) Terms/ rights attached to Equity shares
Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. There is no restriction on distribution of dividend, however same is subject to the approval of the shareholders in the Annual General Meeting of the Company.
Securities
(i) &(ii) Secured by First Pari passu Charge over immovable property including land and buildings and movable fixed assets of packaging films business of the Company, situated at village Mundegaon at village Mukane, Igatpuri, District Nasik in the state of Maharashtra â Nasik Plantâ.
(i) In addition to above, Foreign currency term loans aggregating Rs 9424.02 Lacs (Previous Year Rs. 9689.79 Lacs) are guaranteed by Euler Hermes Aktiengesellschaft, Germany.
(iii) Secured against first Paripasu charge on all Tangible Movable Assets and Immovable Assets of Nonwovens Fabrics Division. Further Working Capital limit of Rs 1900 Lacs (Previous Year Rs 1500 Lacs), has first pari pasu charge on all movable fixed assets.
Terms of Repayments of Non-Current portion of Borrowings :
(i) Rs 3139.88 Lacs (previous year; Rs 5378.74 Lacs), repayable in 2-3 fixed half yearly instalments (previous year; 4-5 fixed half yearly equal instalments).
Rs 8376.91 Lacs (previous year; Rs 8094.43 Lacs), repayable in 16 fixed half yearly equal instalments (previous year; 18 fixed half yearly equal instalments).
Rs 7002.24 Lacs (previous year Rs 9306.93 Lacs), repayable in 12 fixed quarterly equal instalments (previous year; 16 fixed quarterly equal instalments).
(ii) Rs 2590.00 Lacs (previous year; Rs. 2760.80 Lacs), repayable in 16 quarterly instalments (previous year; 19 quarterly instalments).
Rs 4687.48 Lacs (Previous year; 6562.50 Lacs), repayable in 5 half yearly instalments (previous year; 7 half yearly instalments).
Rs 4000.00 Lacs (previous year; Nil), repayable in 9 half yearly instalments (previous year; Nil).
Rs 1560.00 Lacs (previous year; Rs 2080 Lacs), repayable in 12 quarterly instalments (previous year; 16 quarterly instalments).
Rs 1562.50 lacs (previous year; Rs 2187.50 Lacs), repayable in 5 half yearly instalments (Previous year; 7 half yearly instalments).
Rs 675.00 Lacs (previous year; Rs. 3374.98 Lacs), repayable in 1 quarterly instalment (previous year; 5 quarterly instalments).
Rs 330.65 Lacs (previous year; Rs 1618.35 Lacs), repayable in 1 quarterly instalment (previous year; 5 quarterly instalments).
(iii) Rs 13978.00 Lacs, repayable in 15 quarterly fixed equally instalments, Rs 699.56 Lacs repayable in 8 half yearly equal instalments (Previous Year Rs 21242.54 Lacs repayable in 25 quarterly instalments)
8. The Company has concluded that the deferred tax assets on MAT Credit Entitlement will be recoverable using the estimated future taxable income based on the approved business plans and budgets. The Company is expected to generate taxable income in near future. The MAT Credit Entitlement can be carried forward as per local tax regulations and the Company expects to recover the same in due course. Also Refer Note 51.
Securities
(i) Secured by hypothecation of all stocks of raw materials, semi finished goods, finished goods, goods in transit, stores and spares and book debts of the packaging films business of the Company. These are further secured by way of second pari-pasu charge on immovable & movable properties of the packaging films business of the Company situated at Gulaothi (U.P.) and Nasik (Maharashtra).
(ii) Secured by first charge by way of hypothecation of stocks of raw material, semi finished and finished goods and consumable stores, spares and book debts and receivables both present and future of the photographic division of the Company, ranking paripassu with working capital loans sanctioned by other participating banks for photographic division of the Company.
(iii) Secured by way of hypothecation of all stocks of raw materials, work in process, finished goods, stores and spares, book debts etc. including books debts, bills whether documentary or clean, both present and future of Non Wovens Fabrics Division of the Company situated at Gulaothi (U.P.) and Nasik (Maharashtra).
9. Trade Payables are subject to balance confirmation from the suppliers.
10. The Company has not received any intimation from its suppliers being registered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSME Act, 2006) hence the necessary disclosure required under MSME Act, 2006 can not be made.
11. With the introduction of Goods and Services Tax (GST) with effect from 1st July, 2017, Central Excise, Sales Tax, Value Added Tax (VAT) etc. have been replaced by GST. Gross Revenue for the comparative periods and current period upto 30th June 2017 includes Excise Duty but excludes sales tax / VAT. Gross Revenue from sale of products and services w.e.f 1st July 2017 is excluding of GST. In view this restructuring of Indirect Taxes, Gross Revenue from sale of products and services and Excise duty expenses for the year ended 31st March, 2018 are not comparable with the previous year. Following additional information is being provided to facilitate such comparison:
12. In earlier years, Jindal Poly Films Limited (JPFL) has invested in Zero Percent Optionally Convertible Preference Shares having carrying value as at 1st April 2017 of Rs. 40058.20 Lacs of Jindal India Powertech Limited (JIPL) which was the holding company of Jindal India Thermal Power Limited (JITPL). JITPL operates thermal power plant (1200 MW) located at village Derang, Distt Angul, Orissa. In June 2017, the lenders of JITPL have invoked the pledged equity shares to the extent of 51 % equity capital and consequent thereof, JITPL ceased to be a subsidiary of JIPL. Lenders have further invoked 15 % pledged equity shares in the month of February 2018. In view of this development, JPFL shall make necessary adjustment in the value of investment, if any, after final outcome. However, fair value of optionally convertible preference shares as per Ind AS 109 has been made and resultant impact has been shown under exceptional item.
13. BUSINESS COMBINATIONS
Amalgamation of Global Nonwovens Limited
National Company Law Tribunal (NCLT) of Judicature Allahabad Bench and Bombay Bench vide their order dated 12th April, 2017 and 22nd June, 2017 respectively sanctioned the scheme of amalgamation of Global Nonwovens Limited (âAmalgamating Companyâ), a wholly owned subsidiary with Jindal Poly Films Limited (âAmalgamated Companyâ) and their respective shareholders and creditors, pursuant to the provisions of section 391 to 394 and other provisions of the Companies Act, 1956 and/or pursuant to the provisions of section 230 to 232 and other provisions of the Companies Act, 2013. The scheme became effective upon filing of certified copies of the Orders of the National Company Law Tribunal of Judicature at Bombay Bench to Registrar of Companies on 6th July 2017.
The scheme is effective from Appointed Date i.e. 1st April, 2015 inter alia provides for the amalgamation of Global Nonwovens Limited (âAmalgamating Companyâ), a wholly owned subsidiary with Jindal Poly Films Limited (âAmalgamated Companyâ) and upon the Scheme becoming effective, the Amalgamating Company shall stand transferred to and be vested in the Amalgamated Company, as a going concern, without any further deed or act, together with all the properties, assets, rights, liabilities, benefits and interest therein, subject to any existing lien or lis pendens, which shall be deemed to be modified subject to the provisions of the Scheme.
The accounting effect of this Amalgamation to in the financial statements has been given as under:
(a) With the acquisition of balance equity shares of Global Nonwovens Limited in August 2016, it has become a wholly owned subsidiary of Jindal Poly Films Limited, upon coming into effect of the Scheme and upon vesting in and transfer of the assets and liabilities of the Amalgamating Company to the Amalgamated Company in accordance with Part-II of the Scheme, no consideration shall be payable and no shares shall be allotted by the Amalgamated Company to the shareholders of Amalgamating Company. The amalgamation being a common control transaction has been accounted for under the âPooling of interestâ method as prescribed by Ind AS 103 on Business Combinations.
(b) The share capital of the Amalgamating Company to the extent held by the Amalgamated Company as on the Appointed Date and any further share capital held by the Amalgamated Company in Amalgamating Company thereafter (being shares held in the Amalgamating Company) shall stand cancelled.
(c.) The Amalgamated Company has recorded all assets and liabilities of the Amalgamating Company vested in it pursuance to the scheme, at the respective book values thereof, as appearing in the books of account of the Amalgamating Company immediately before the appointed date.
(d) As scheme of amalgamation, being effective from 1st April 2015, accordingly Financial Statements for the year ended 31st March 2017 has been restated incorporating the effect of scheme of amalgamation based on audited financial statements of Global Nonwovens Limited for the financial year 2016-17, audited by other auditors. Further figures of Amalgamating Company have been regrouped and/or rearranged wherever required to align with disclosure parameters of the Amalgamated Company.
14 DEFINED CONTRIBUTION PLANS
The Company makes contributions towards provident fund to a defined contribution benefit plan for qualifying employees. Under the plan, the Company is required to contribute a specified percentage of payroll cost to the benefit plan to fund the benefits.
15. DESCRIPTION OF RISK EXPOSURES:
Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is exposed to various risks as follow -
Salary Increases- Actual salary increases will increase the Planâs liability. Increase in salary increase rate assumption in future valuations will also increase the liability.
Investment Risk - If Plan is funded then assets liabilities mismatch & actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.
Discount Rate : Reduction in discount rate in subsequent valuations can increase the planâs liability.
Mortality & disability - Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.
Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Planâs liability.
16. Under the Package Scheme of Incentive 2007/2013 approved by the Government of Maharashtra, the Company is entitled to industrial promotion subsidy to the extent of 100% of the fixed capital investment or to the extent of taxes paid to the State Government within a period of 7 years, whichever is lower. During the year, subsidy receivable under the above scheme aggregating Rs 5860.07 Lacs (previous year Rs 5798.85 Lacs) has been carried by setting up these grants as Deferred Government Grants in Non-Current/Current Liabilities and amortised/recognised in the statement of profit and loss on straight line method and disclosed in Other Income (other gains/(losses)).
17. Rs. 863.11 Lacs (previous year Rs. 1049.71 Lacs) as subsidy under Technology Upgradation Funded Scheme (TUFS) by The Ministry of Textile (Government of India) for Nonwoven Project received / receivable in the form of reimbursement of interest paid to the lending banks /agencies for the loan disbursed and accordingly same has been netted off from the interest expenses in respective year, to the extent charged during the financial year.
18. Rs. 752.87 Lacs (previous year Rs. 1037.89 Lacs) as interest subsidy on long term loans to Nonwoven Project granted by Government of Maharashtra under Textile Policy, which has also been netted off from the interest expense, to the extent charged during the financial year.
19. Trade Receivables include Rs 63.50 Lacs (previous year Rs 63.50 Lacs) under litigation, against which legal cases are pending in various Courts for recovery. The same are considered good and realizable in the opinion of the management.
20. Stores & Spares consumed and salaries & wages incurred during the year for repair and maintenance of plant & machinery and sheds & building, have been charged to the former accounts wherever separation is not ascertainable.
21. SEGMENT INFORMATION
21.1 Description of segments and principal activities
Segment information is presented in respect of the companyâs key operating segments. The operating segments are based on the companyâs management and internal reporting structure.
The companyâs board examines the Companyâs performance both from a product perspective and have identified three reportable segments of its business:
1 Packaging Films
2 Nonwoven Fabrics
3 Photographic Products & Others
The Companyâs board of Directors reviews the results of each segment on a quarterly basis. The companyâs board of directors uses Earning Before Interest and Tax (EBITA) to assess the performance of the operating segments.
22. Geographic information
The segments are managed on a worldwide basis, but operate manufacturing facilities and sales offices in India. The geographic information analyses the Companyâs revenue and receivables from customers of Companyâs country of domicile and other countries. In presenting the geographic information, segment revenue has been based on the geographic location of customers.
23. Major Customer
In case of Packaging and Photographic Segment, no single customer has contributed 10% or more to their respective segmentâs revenue for both 2017-18 and 2016-17
In case of Nonwoven Fabrics Segment, three major customers have contributed aggregate revenue of Rs 8259 Lacs (Previous Year Rs. 4686 Lacs) of that segments total revenues.
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.
There are no transfers between level 1 and level 2 during the year
(b) Valuation technique used to determine fair value
Specific valuation techniques used to value financial instruments include:- the use of quoted market prices or dealer quotes for similar instruments- the fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date- the fair value of the remaining financial instruments is determined using discounted cash flow analysis. All of the resulting fair value estimates are included in level 2 or level 3, where the fair values have been determined based on present values and the discount rates used were adjusted for counterparty or own credit risk.
The Company gets the valuations performed from an independent valuer, required for financial reporting purposes, including level 3 fair values. The main level 3 inputs for unlisted preference shares used by the Company are derived and evaluated as follows:
- Risk adjusted discount rates are estimated based on expected cash inflows arising from the instrument and the entityâs knowledge of the business and how the current economic environment is likely to impact it.
(c) Fair Value Estimations
Estimated fair value disclosures of financial instruments are made in accordance with the requirements of Ind AS 107 âFinancial Instruments: Disclosureâ. Fair value is defined as the amount at which the instrument could be exchanged in a current transaction between knowledgeable willing parties in an armâs length transaction, other than in forced or liquidation sale. As no readily available market exists for a large part of the Companyâs financial instruments, judgment is necessary in arriving at fair value, based on current economic conditions and specific risks attributable to the instrument. The estimates presented herein are not necessarily indicative of the amounts the Company could realize in a market exchange from the sale of its full holdings of a particular instrument.
The following summarizes the major methods and assumptions used in estimating the fair values of financial instruments.
Interest-bearing borrowings
Fair value is calculated based on discounted expected future principal and interest cash flows. The carrying amount of the Companyâs loans due after one year is also considered as reasonable estimate of their fair values as the nominal interest rates on the loans due after one year are variable and considered to be a reasonable approximation of the fair market rate with reference to loans with similar credit risk level and maturity period at the reporting date.
Trade and other receivables / payables
Receivables / payables typically have a remaining life of less than one year and receivables are adjusted for impairment losses. Therefore, the carrying amounts for these assets and liabilities are deemed to approximate their fair values, as the allowance for estimated irrecoverable amounts is considered a reasonable estimate of the discount required to reflect the impact of credit risk.
Other long term receivables
These receivables are regularly reviewed and adjusted for impairment losses. Therefore, management considers the carrying amount of these receivables to approximate fair value.
(d) Valuation Process
The accounts & finance department of the Company includes a team that performs the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values. This team reports directly to the chief financial officer (CFO) and the audit committee (AC).
Discussions of valuation processes and results are held between the CFO, AC and the valuation team at least once every three months, in line with the Companyâs quarterly reporting periods.
The main level 3 inputs for unlisted equity securities, contingent considerations and indemnification asset used by the Company are derived and evaluated as follows:
- Discount rates are determined using a capital asset pricing model to calculate a pre-tax rate that reflects current market assessments of the time value of money and the risk specific to the asset.
- Risk adjustments specific to the counterparties (including assumptions about credit default rates) are derived from credit risk grading determined by the Companyâs internal credit risk management group.
- Earnings growth factor for unlisted equity securities are estimated based on market information for similar types of companies.
Changes in level 2 and 3 fair values are analysed at the end of each reporting period during the quarterly valuation discussion between the CFO, AC and the valuation team. As part of this discussion the team presents a report that explains the reason for the fair value movements.
24 FINANCIAL RISK MANAGEMENT
(a) Risk Management Framework
In the ordinary course of business, the Company is exposed to a different extent to a variety of financial risks: foreign currency risk, interest rate risk, liquidity risk, price risk and credit risk. In order to minimize any adverse effects on the financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts, foreign currency option contracts are entered to hedge certain foreign currency risk exposures. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments. This note explains the sources of risk which the Company is exposed to and how it manages the risk.
(b) Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Companyâs receivables from customers and investments in financial instruments.
The carrying amount of financial assets represents the maximum credit exposure. The Company monitor credit risk very closely both in domestic and export market. The Management impact analysis shows credit risk and impact assessment as low.
Trade and Other Receivables
Credit risk is the risk that a customer may default or not meet its obligations to the company on a timely basis, leading to financial losses to the Company. The management has an advance collection /credit policy criteria in place and the exposure to credit risk is monitored on an ongoing basis. Credit evaluations are performed on all customers requiring credit over a certain amount. Before accepting a new customer, the Company uses an internal credit system to assess the potential customerâs credit quality and defines credit limits separately for each individual customer. The gross carrying amount of trade receivables as at 31st March 2018 aggregates Rs 14078.39 Lacs (Previous year Rs 10029.61 Lacs) and only insignificant trade receivables are due for more than six months from the reporting date. The Company reviews for any required allowance for impairment that represents its expected credit losses in respect of trade receivables.
Investments are reviewed for any fair valuation loss on periodically basis and necessary provision/fair valuation adjustments has been made based on the valuation carried by the management to the extent available sources, the management does not expect any investment counterparty to fail to meet its obligations.
(c) Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Companyâs approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are fallen due. The Companyâs liquidity position is carefully monitored and managed. The Company has in place a detailed budgeting and cash forecasting process to help ensure that it has adequate cash available to meet its payment obligations.
Financing Arrangements
The Company has adequate short term finance arrangements to meet requirements of day to day operations.
(d) Market Risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices mainly comprise three types of risk: currency rate risk, interest rate risk and other price risks. Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. This is based on the financial assets and financial liabilities held as at March 31, 2018 and March 31, 2017. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return. The Company uses derivatives like forward contracts to manage market risks on account of foreign exchange.
Currency Risk
The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD and Euro. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the companyâs functional currency (Rupees). Currency risks related to the principal amounts of the Companyâs foreign currency payables, have been partially hedged using forward contracts taken by the Company.
Exposure to Currency Risk
The summary of quantitative data about the Companyâs exposure (Unhedged) to currency risk as reported to the management of the Company is as follows :
Interest Rate Risk
The Companyâs main interest rate risk arises from long-term borrowings with variable rates, which expose the Company to cash flow interest rate risk. During 31 March 2018 and 31 March 2017, the Companyâs borrowings at variable rate were denominated in Indian rupees. Currently the Companyâs borrowings are within acceptable risk levels, as determined by the management, hence the Company has not taken any swaps to hedge the interest rate risk.
25 CAPITAL MANAGEMENT
The Company manages its capital to ensure to continue as a going concern while maximizing the return to the equity holders through optimization of the debt to equity balance. In order to achieve this, requirement of capital is reviewed periodically with reference to operating and business plans that take into account capital expenditure and strategic investments. Apart from internal accrual , sourcing of capitalised one through judicious combination of equity and borrowing, both short term and long term. Consistent with others in the industry, the Company monitors capital on the basis of the optimum gearing ratio of Net debt (comprising total borrowings net of cash & bank balances and current investment) in proportion to Total Equity.
26. PROVISION FOR POST-SALES CLIENT SUPPORT AND WARRANTIES:
Provision for post-sales client support and warranties on certain products and services relating to photographic business of the Company are made towards expected cost of meeting such obligations of rectification/replacement based on the expected future cash outflows and computed on total sales made during the year, based on the past experience. Provision for the post-sales client support are expected to be utilised over a period of one year.
27. The Administration of Union Territory of Dadra & Nager Haveli vide its Notification dated 31st December, 1999 granted exemption for sales tax to the entity M/s Jindal Photo Limited (being merged with the Company M/s Jindal Poly Films Limited w.e.f. 1st April 2014). Sales tax benefits for the year ended 31st March 2017 aggregates Rs 19.99 Lacs.
Further financial statements for the financial years 2005-06 to 2010-11 of entity M/s Jindal Photo Limited (manufacturing division being merged with Company M/s Jindal Poly Films Limited w.e.f. 1st April 2014) were prepared considering such benefit as revenue receipt and income tax was provided and paid at normal rate for respective year. The assessment of financial year 2005-06 to 2010-11 for which assessment proceedings u/s 153A is in progress, entity has filed revised income tax computations for such financial years claiming benefit of Rs. 11288.57 Lacs as exempted income and tax liability was revised as per provisions of section 115JB of Income Tax Act, 1961 (MAT) at Rs. 2278.70 Lacs. As the claim is for the years for which normal revised return could not be filed, the effect of such claim of benefit is not considered and necessary effective entries will be passed on finality of the assessment. Year wise detail is as under:
28. EVENTS AFTER THE BALANCE SHEET DATE
The Board of Directors of the Company, in its meeting held on 15th May 2018 has recommended dividend of Rs 1 per equity share aggregating Rs 527.86 Lacs including corporate dividend tax of Rs 90 Lacs for the financial year ended 31st March 2018 and same is subject to approval of shareholders at the ensuing Annual General Meeting and as per Ind AS, has not been shown as a liability in the financial statements for the year ended 31st March 2018.
29. Figures for the previous year have been regrouped /rearranged wherever required, to make them comparable.
Mar 31, 2017
1. Related Party Transactions:
a. Entities are member of the same group as per para 9(b)(i) of Ind AS 24 (Related Party Disclosure), where reporting entity is a member (comprising subsidiaries and fellow subsidiaries)
1 Jindal Films India Limited
2 Global Nonwovens Limited
3 JPF Netherland B.V.
4 JPF Dutch B.V.
5 JPF USA Holding LLC
6 Jindal Films America LLC
7 Films Macedon LLC
8 Jindal Films Europe Virton LLC
9 Jindal Films Europe Brindsi Srl
10 Jindal Films Europe Kerkrade B.V
11 Jindal Films Europe S.a.r.l
12 Jindal Films Singapore Pte.Ltd
13 Jindal Films (Shanghai) Co. Ltd.
14 Jindal Films Europe Virton SPRL
15 Jindal Imaging Ltd
16 Jindal Photo Imaging Ltd
17 Jindal Films Europe Services S.a.r.l
18 Jindal Packaging Trading DMCC (incorporated dated 25 August 2016, refer note 58)
19 Rexor SAS (w.e.f. 17th July 2016)
b. Associates of the Reporting Entity
1 Rexor SAS (till 16th July, 2016)
2 Hindustan Powergen Limited (till Feb 2017, refer note 57)
c. Key Management Personnel of the Reporting Entity
1 Sh. Sanjay Digamber Kapote (Whole Time Director)
2 Sh. S D Gosavi (Whole Time Director)
3 Sh. Manoj Gupta (Chief Financial Officer)
4 Sh. Sanjeev Kumar (Company Secretary)
d. âMajor shareholders of the reporting entityâ and âEnterprise owned by major shareholders of the reporting entityâ
1 Consolidated Finvest & Holdings Ltd.
2 Jindal Poly Investment & Finance Company Limited
3 Jindal India Limited
4 Anchor Image and Films Private Ltd
5 Anchor Image and Films Pte Limited Singapore
6 Jindal Photo Investment Limited
7 Soyuz Trading Company Limited
e. Other Enterprises
1 Jindal India Powertech Limited
2 Jindal India Thermal Power Limited
3 Jumbo Finance Limited
4 Jupax Barter Pvt. Ltd.
5 Jindal Photo Limited (Investment Division)
6 Consolidated Photo & Finvest Ltd
Note:- Reporting entity for above related party disclosures refers Jindal Poly Films Limited.
Comprehensive disclosure of investments as at 31st March 2017 has been made in Note 3 to the Financial Statements, hence closing balance of other investments (Equity Shares/Preference Shares) having no movement during the year were not again disclosed in above statement.
**balance excluding interest
2. A sum of Rs 467.34 Lacs (previous year Rs 1392.18 Lacs) being the difference between domestic and imported raw material prices prevailing at the year ended on 31st March 2017 on account of advance license excess utilized for which exports are yet to be made, has been adjusted in the cost of material.
3. Under the Package Scheme of Incentive 2001/2007 approved by the Government of Maharashtra, the Company is entitled to industrial promotion subsidy to the extent of 100% of the fixed capital investment or to the extent of taxes paid to the State Government within a period of 7 years, whichever is lower. During the year, subsidy receivable under the above scheme aggregating Rs 5577.35 Lacs (previous year Rs 5214.31 Lacs) has been accrued. These Grants related to acquisition of property, plant & equipment are recognized in the balance sheet by setting up the grant as deferred income and are recognized in statement of profit and loss on a straight line basis on the expected remaining lives of the related assets/project and presented as net off from depreciation expenses of the period.
4. The Export obligation undertaken by the company for import of capital equipments under EPCG scheme of the Central Government at the concessional rate of custom duty are in the opinion of the management expected to be fulfilled within their respective due dates/extended due date.
5. Trade Receivables include Rs 63.50 Lacs (previous year Rs 53.23 Lacs) under litigation, against which legal cases are pending in various Courts for recovery. The same are considered good and realizable in the opinion of the management.
6. Advance receivable in cash or in kind includes Rs 282.54 Lacs (previous year Rs 282.54 Lacs) being the amount of customs duty deposited against import of capital goods assessed under provisional assessments in earlier year.
7. Stores & Spares consumed and salaries & wages incurred during the year for repair and maintenance of plant & machinery and sheds & building, have been charged to the former accounts wherever separation is not ascertainable.
8. Exceptional items represents gain/loss being exchange difference on translation/settlement of long term foreign currency loans for acquiring fixed assets.
9. SEGMENT INFORMATION
10. Description of segments and principal activities
Segment information is presented in respect of the company''s key operating segments. The operating segments are based on the company''s management and internal reporting structure.
The company''s board examines the Company''s performance both from a product perspective and have identified two reportable segments of its business:
1 Packaging Films
2 Photographic Products
The Company''s board reviews the results of each segment on a quarterly basis. The company''s board of directors uses Earnings Before Interest and Tax (EBITA) to assess the performance of the operating segments.
11. Geographic information
The segments are managed on a worldwide basis, but operate manufacturing facilities and sales offices in India. The geographic information analyses the Company''s revenue and receivables from customers of Company''s country of domicile and other countries. In presenting the geographic information, segment revenue has been based on the geographic location of customers.
Other Informationâs
The Company has common assets for producing goods for domestic market and overseas market.
12. Major Customer
Sales of the Company is evenly distributed, disclosure of major customer could not be made.
FVTPL refers fair value through profit and loss
13. Fair Value Hierarchy
(a) This section explains the judgments and estimates made in determining the fair values of the financial instruments. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard.
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.
There are no transfers between level 1 and level 2 during the year
(b) Valuation technique used to determine fair value
Specific valuation techniques used to value financial instruments include:
- the use of quoted market prices or dealer quotes for similar instruments
- the fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date
- the fair value of the remaining financial instruments is determined using discounted cash flow analysis.
All of the resulting fair value estimates are included in level 2 or level 3, where the fair values have been determined based on present values and the discount rates used were adjusted for counterparty or own credit risk.
(c) Fair Value Estimations
Estimated fair value disclosures of financial instruments are made in accordance with the requirements of Ind AS 107 âFinancial Instruments: Disclosureâ. Fair value is defined as the amount at which the instrument could be exchanged in a current transaction between knowledgeable willing parties in an arm''s length transaction, other than in forced or liquidation sale. As no readily available market exists for a large part of the Company''s financial instruments, judgment is necessary in arriving at fair value, based on current economic conditions and specific risks attributable to the instrument. The estimates presented herein are not necessarily indicative of the amounts the Company could realize in a market exchange from the sale of its full holdings of a particular instrument.
The following summarizes the major methods and assumptions used in estimating the fair values of financial instruments.
Interest-bearing borrowings
Fair value is calculated based on discounted expected future principal and interest cash flows. The carrying amount of the Company''s loans due after one year is also considered as reasonable estimate of their fair values as the nominal interest rates on the loans due after one year are variable and considered to be a reasonable approximation of the fair market rate with reference to loans with similar credit risk level and maturity period at the reporting date.
Trade and other receivables / payables
Receivables / payables typically have a remaining life of less than one year and receivables are adjusted for impairment losses. Therefore, the carrying amounts for these assets and liabilities are deemed to approximate their fair values, as the allowance for estimated irrecoverable amounts is considered a reasonable estimate of the discount required to reflect the impact of credit risk.
Other long term receivables
These receivables are regularly reviewed and adjusted for impairment losses. Therefore, management considers the carrying amount of these receivables to approximate fair value.
(d) Valuation Process
The accounts & finance department of the Company includes a team that performs the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values. This team reports directly to the chief financial officer (CFO) and the audit committee (AC).
Discussions of valuation processes and results are held between the CFO, AC and the valuation team at least once every three months, in line with the Company''s quarterly reporting periods.
The main level 3 inputs for unlisted equity securities, contingent considerations and indemnification asset used by the Company are derived and evaluated as follows:
- Discount rates are determined using a capital asset pricing model to calculate a pre-tax rate that reflects current market assessments of the time value of money and the risk specific to the asset.
- Risk adjustments specific to the counterparties (including assumptions about credit default rates) are derived from credit risk grading determined by the Company''s internal credit risk management group.
- Earnings growth factor for unlisted equity securities are estimated based on market information for similar types of companies.
Changes in level 2 and 3 fair values are analyzed at the end of each reporting period during the quarterly valuation discussion between the CFO, AC and the valuation team. As part of this discussion the team presents a report that explains the reason for the fair value movements.
14. FINANCIAL RISK MANAGEMENT
(a) Risk Management Framework
In the ordinary course of business, the Company is exposed to a different extent to a variety of financial risks: foreign currency risk, interest rate risk, liquidity risk, price risk and credit risk. In order to minimize any adverse effects on the financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts, foreign currency option contracts are entered to hedge certain foreign currency risk exposures. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments.
This note explains the sources of risk which the Company is exposed to and how it manages the risk.
(b) Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and investments in financial instruments.
The carrying amount of financial assets represents the maximum credit exposure. The Company monitor credit risk very closely both in domestic and export market. The Management impact analysis shows credit risk and impact assessment as low.
Trade and Other Receivables
Credit risk is the risk that a customer may default or not meet its obligations to the company on a timely basis, leading to financial losses to the Company. The management has an advance collection /credit policy criteria in place and the exposure to credit risk is monitored on an ongoing basis. Credit evaluations are performed on all customers requiring credit over a certain amount. Before accepting a new customer, the Company uses an internal credit system to assess the potential customer''s credit quality and defines credit limits separately for each individual customer. The gross carrying amount of trade receivables as at 31st March 2017 aggregates Rs 9059.04 Lacs (Previous year ended 31st March 2016 Rs 12065.77 Lacs) and only insignificant trade receivables are due for more than six months from the reporting date. The Company reviews for any required allowance for impairment that represents its expected credit losses in respect of trade receivables.
Investments are reviewed for any fair valuation loss on periodically basis and necessary provision/fair valuation adjustments has been made based on the valuation carried by the management to the extent available sources, the management does not expect any investment counterparty to fail to meet its obligations.
(c) Liquidity Risk
Liquidity risk is the risk that the Company 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 fallen due. The Company''s liquidity position is carefully monitored and managed. The Company has in place a detailed budgeting and cash forecasting process to help ensure that it has adequate cash available to meet its payment obligations.
(d) Market Risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices mainly comprise three types of risk: currency rate risk, interest rate risk and other price risks. Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. This is based on the financial assets and financial liabilities held as at March 31, 2017 and March 31, 2016. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return. The Company uses derivatives like forward contracts to manage market risks on account of foreign exchange.
Currency Risk
The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD and Euro. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities denominated in a currency that is not the company''s functional currency (Rupees). Currency risks related to the principal amounts of the Company''s foreign currency payables, have been partially hedged using forward contracts taken by the Company.
Interest Rate Risk
The Company''s main interest rate risk arises from long-term borrowings with variable rates, which expose the Company to cash flow interest rate risk. During 31 March 2017 and 31 March 2016, the Company''s borrowings at variable rate were denominated in Indian rupees. Currently the Company''s borrowings are within acceptable risk levels, as determined by the management, hence the Company has not taken any swaps to hedge the interest rate risk.
* Applicable Indian Statutory Income Tax rate for Fiscal 2017 & 2016 is 34.608%. However, Company is required to pay tax u/s 115JB of Income Tax Act 1961 in Fiscal 2017.
15. CAPITAL MANAGEMENT
The Company manages its capital to ensure to continue as a going concern while maximizing the return to the equity holders through optimization of the debt to equity balance. In order to achieve this, requirement of capital is reviewed periodically with reference to operating and business plans that take into account capital expenditure and strategic investments. Apart from internal accrual , sourcing of capitalized one through judicious combination of equity and borrowing, both short term and long term.
Consistent with others in the industry, the Company monitors capital on the basis of the optimum gearing ratio of Net debt (comprising total borrowings net of cash & bank balances and current investment) in proportion to Total Equity.
16.PROVISION FOR POST-SALES CLIENT SUPPORT AND WARRANTIES:
Provision for post-sales client support and warranties on certain products and services relating to photographic business of the Company are made towards expected cost of meeting such obligations of rectification/replacement based on the expected future cash outflows and computed on total sales made during the year, based on the past experience. Provision for the post-sales client support are expected to be utilized over a period of one year.
51 The Administration of Union Territory of Dadra & Nager Haveli vide its Notification dated 31st December, 1999 granted exemption for sales tax to the Demerged Entity M/s Jindal Photo Limited (now being merged with the Holding Company M/s Jindal Poly Films Limited). Sales tax benefits for the year aggregates Rs 19.99 Lacs (previous year Rs 917.22 Lacs)
Further financial statements for the financial years 2005-06 to 2010-11 of Demerged Entity M/s Jindal Photo Limited (now being merged with the Holding Company M/s Jindal Poly Films Limited) were prepared considering such benefit as revenue receipt and income tax was provided and paid at normal rate for respective year. The assessment of financial year 2005-06 to 2010-11 for which assessment proceedings u/s 153A is in progress, entity has filed revised income tax computations for such financial years claiming benefit of Rs. 11288.57 Lacs as exempted income and tax liability was revised as per provisions of section 115JB of Income Tax Act, 1961 (MAT) at Rs. 2278.70 Lacs. As the claim is for the years for which normal revised return could not be filed, the effect of such claim of benefit is not considered and necessary effective entries will be passed on finality of the assessment. Year wise detail is as under:
Specified Bank Notes is defined as Bank Notes of denominations of the existing series of the value of five hundred rupees and one thousand rupees.
17.Information related to Micro Enterprises and Small Enterprises, as defined in the Micro, Small and Medium Enterprises Development Act, 2006 (MSME Development Act), are given below. The information given below have been determined to the extent such enterprises have been identified on the basis of information available with the Company:
18. Expenditure incurred on Corporate Social Responsibility
Details of expenditure on Corporate Social Responsibility Activities as per Section 135 of the Companies Act, 2013 read with schedule VII are as below:
19.The Board of Directors of the Company at its meeting held on 23rd August 2016 has approved the scheme of amalgamation of Global Nonwovens Limited (âAmalgamating Companyâ), a wholly owned subsidiary with Jindal Poly Films Limited (âAmalgamated Companyâ).
As per the scheme, the amalgamating company shall stand transferred to and be vested in the amalgamated company. This scheme has been approved by BSE Limited (âBSEâ) and National Stock Exchange of India Limited (âNSEâ) vide letter 14th October, 2016. Thereafter Petition was filed with Hon''ble High Courts, Allahabad and Mumbai; latter on matter was transferred to National Company Law Tribunal (NCLT), Allahabad Bench and Mumbai Bench by respective High Courts. Now the National Company Law Tribunal (NCLT), Allahabad Bench in its hearing held on 7th April, 2017 has sanctioned the Scheme and matter is now pending before the National Company Law Tribunal (NCLT), Mumbai Bench. Pending approval and filling with Registrar of Companies (ROC), financial statements of amalgamating company has not been incorporated in amalgamated company as at 31st March 2017.
20. During the year, one of Indian associate of the Company M/s Hindustan Powered Limited has been merged with other entity due to effectiveness of the scheme of amalgamation. Pursuant to the scheme of amalgamation, shares of M/s Hindustan Powergen Limited would have been cancelled and in consideration proportionate shares as per the determined ratio, would be allotted in the surviving amalgamated entity, issuance of these shares is under process. Accordingly M/ s Hindustan Powergen Limited being no longer an associate of the Jindal Poly Films Limited as at 31st March 2017.
21. During the year Jindal Packaging Trading DMCC has been incorporated on 25th August 2016 (legal seat in Dubai), with infuse of initial share capital by Jindal Poly Films Limited of 100 shares of AED 1000 each aggregating equivalents INR
22. Lacs, resulting in a wholly owned subsidiary of the Jindal Poly Films Limited.
23. Events after the Balance Sheet Date
The Board of Directors, in its meeting held on 25th May 2017 has recommended dividend of Rs 1 per equity share aggregating Rs 527.00 Lacs including corporate dividend tax of Rs 89.13 Lacs for the financial year ended 31st March 2017 and sale is subject to approval of shareholders at the ensuing Annual General Meeting and as per Ind AS, has not been shown as a liability in the financial statements for the year ended 31st March 2017.
24. Previous GAAP figures have been reclassified/regrouped to conform to the presentation requirements under IndAS and the requirements laid down in Division-II to the Schedule-III of the Companies Act 2013.
Mar 31, 2016
b Pursuant to the scheme of Arrangement between Jindal Photo Limited (Demerged Company) and Jindal Poly Films Limited (Resulting Company) and their respective shareholders and creditors, 17,38,700 Equity shares of Rs 10/- each has been issued to the shareholders of Jindal Photo Limited (Refer Note 30).
c Ordinary Shares allotted as fully paid pursuant to contract(s) without payment being received in cash during the period of five years.
17,38,700 Equity shares of Rs 10/- each, issued pursuant to the scheme of Arrangement (Refer Note 30 (a))
Terms/ rights attached to Equity shares
Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. There is no restriction on distribution of dividend, however same is subject to the approval of the shareholders in the Annual General Meeting of the Company.
1 The Board of Directors, in its meeting held on 30th May 2016 has recommended dividend of Rs 1 per equity share for the financial year ended 31st March 2016 and sale is subject to approval of shareholders at the ensuing Annual General Meeting. The Total dividend appropriation for the year ended 31st March 2016 amounted to Rs 5,27,00,296 including corporate dividend tax of Rs 89,13,883.
Securities :
(i) and (ii) Secured by First Pari passu Charge over immovable property including land and buildings and movable fixed assets
of the Company, situated at village Mundegaon at village Mukane , Igatpuri, District Nasik in the state of Maharashtra â Nasik Plantâ.
(ii) Further Foreign currency term loans from AKA Ausfuhrkredit Gesellschaft MBH, Germany and ING Bank (a Branch of ING-DiBa AG) aggregating Rs 14073.86 Lacs are guaranteed by Euler Hermes Aktiengesellschaft, Germany.
Terms of Repayments of Non-Current portion of Borrowings :
2.. Merger of Manufacturing Division of Jindal Photo Limited
The Hon''ble High Court of Judicature at Allahabad and Bombay vide their Order dated 12th October, 2015 and 26th February, 2016 respectively sanctioned the scheme of arrangement (''the scheme'') between Jindal Photo Limited (âDemerged Companyâ) and Jindal Poly Films Limited (âResulting Companyâ) and their respective shareholders and creditors, pursuant to the provisions of section 391 to 394 and other provisions of the Companies Act, 1956 and/or Companies Act, 2013. The scheme became effective upon filing of certified copies of the Orders of the Hon''ble High Court of Judicature at Bombay on 31st March, 2016.
The scheme is effective from Appointed Date i.e. 1st April, 2014 inter alia provides for the demerger of the demerged undertaking as defined in part (III) of the scheme - Business of Manufacture, production, sale and distribution of photographic products of demerged company into the Resulting Company. Accordingly financial statements of the demerged entity has been incorporated for the year ended 31st March 2016 along with corresponding previous year ended 31st March 2015.
(a) Pursuant to the scheme of Arrangement between Jindal Photo Limited (Demerged Company) and Jindal Poly Films Limited (Resulting Company) and their respective shareholders and creditors, as a Consideration, Jindal Poly Films Limited have allotted 17,38,700 (seventeen lac thirty eight thousand seven hundred) Equity shares of Rs. 10 each fully paid up in the capital of the company on 30th May,2016 in the ratio of 10 fully Paid-up equity shares of Rs. 10 each of the Company for every 59 Equity shares of Jindal Photo Limited held by shareholders of Jindal Photo Limited on record date i.e. 13th May, 2016. Accordingly these shares are treated as outstanding as on reporting date and are included for the calculation of basic earnings per share for the year ended 31st March 2016 along with corresponding previous year ended 31st March 2015.
(b) The accounting of this Arrangement was done as per the scheme and the same has been given effect to in the financial statements as under:
i. The Resulting Company has recorded all assets and liabilities of the Demerged Undertaking vested in it pursuance to this scheme, at the respective book values thereof, as appearing in the books of account of the Demerged Company immediately before the appointed date.
ii. The Resulting Company has credited the aggregate face value of the New Equity shares of the Company issued by it to the members of the Demerged Company pursuant to this scheme to the share capital in books of accounts.
iii. The difference of the aggregate of face value equity shares allotted by the Company to the shareholders of the Demerged Undertaking, and the amount representing surplus of book value of assets over liabilities of the Demerged Undertaking has been recorded by the Resulting Company as Capital Reserve.
iv. Figures of demerged undertakings have been regrouped and/or rearranged wherever required to align with disclosure parameters of the Resulting Company.
âFigures have been regrouped and/or rearranged wherever required to align with grouping of the Resulting Company.
31.7 Related Party Disclosures as per Accounting Standard - 18 (Related Party Disclosures), to the extent Identified by the Company List of Related Parties
(a) Subsidiary Companies
1 Jindal Films India Ltd (Previously Known as Jindal Metal & Mining Limited )
2 Global Nonwovens Limited
3 JPF Netherland B.V.
4 JPF Dutch B.V.
5 JPF UsA Holding LLC
6 Jindal Films America LLC
7 Films Macedon LLC
8 Jindal Films Europe Virton LLC
9 Jindal Films Europe Brindsi srl
10 Jindal Films Europe Kerkrade B.V
11 Jindal Films Europe s.a.r.l
12 Jindal Films singapore Pte.Ltd
13 Jindal Films (shanghai) Co. Ltd.
14 Jindal Films Europre Virton sPRL
15 Jindal Imaging Ltd (Pursuant to scheme of Arrangement)
16 Jindal Photo Imaging Ltd (Pursuant to scheme of Arrangement)
17 Jindal Films Europe services s.a.r.l. (incorporated as at 29th March 2016)
Note - M/s Films shawnee LLC and M/s Films LaGrange LLC Merged with JPF UsA Holding LLC.
(b) Associates
1 Rexor sAs
(Rexor Holding sAs merged with its wholly owned subsidiary Rexor sAs)
2 Hindustan Powergen Limited
(c) Key Managerial Personnel
1 sh. sanjay Mittal
2 Ms. sumita Dhingra (till 14.10.2015)
3 sh. s D Gosavi
4 sh. Manoj Gupta (Chief Finance Officer) (w.e.f. 28.05.2015)
5 sh. sanjeev Kumar (Company secretary)
(d) Enterprise owned by Major Shareholders of reporting Enterprise
1 Jindal Photo Investment Limited
2 soyuz Trading Company Limited
3 Rishi Trading Company Limited
4 Consolidated Finvest & Holdings Ltd.
5 Jindal Poly Investment & Finance Company Limited
6 Jindal India Limited
7 Anchor Image and Films Private Ltd
8 Anchor Image and Films Pte Limited singapore
(e). Other Enterprises
1 Jindal India Powertech Limited
2 Jindal India Thermal Power Limited
3 Jumbo Finance Limited
4 Jupax Barter Pvt. Ltd.
5 Jindal Photo Limited (Residual Investing Business)
6 Consolidated Photo & Finvest Ltd
âincludes Preference shares purchased aggregating Rs 39,29,00,000 from Jindal Photo Limited (Residual Investing Business)
Note : Pursuant to the scheme of Arrangement between Jindal Photo Limited (Demerged Company) and Jindal Poly Films Limited (Resulting Company), as approved by Hon''ble High Court of Judicature Mumbai vide order dated 26th February 2016, the Company has given impact in its books of accounts. Accordingly general inter unit balances arose earlier to approval of the scheme between Demerged Undertaking - M/s Jindal Photo Limited (Manufacturing Division) and Residual Undertaking - M/s Jindal Photo Limited (Investing Division) aggregating Rs 9,08,29,456 (Previous Year Rs 7,26,51,606) has been disclosed in short Term Loans and Advances (Refer Note 17.1). Being merely an accounting treatment for giving effect of the scheme, the above transaction and balance thereon is not disclosed in above related party disclosures.
3. Disclosure under Regulation 34(3) of âSecurities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015â
Loans and advances outstanding at the year end and maximum amount outstanding during the year, as required to be disclosed under schedule V and Regulation 34(3) of âsecurities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015â are as follows: âComprehensive disclosure of investments as at 31st March 2016 has been made in Note 10 to the Financial statements, hence closing balance of other investments (Equity shares/Preference shares) having no movement during the year were not again disclosed in above statement.
ââbalance including interest
Note: Pursuant to the scheme of Arrangement between Jindal Photo Limited (Demerged Company) and Jindal Poly Films Limited (Resulting Company), as approved by Hon''ble High Court of Judicature Mumbai vide order dated 26th February 2016, the Company has given impact in its books of accounts. Accordingly general inter unit balances arose earlier to approval of the scheme between Demerged Undertaking - M/s Jindal Photo Limited (Manufacturing Division) and Residual Undertaking - M/s Jindal Photo Limited (Investing Division) aggregating Rs 9,08,29,456 (Previous Year Rs 7,26,51,606) has been disclosed in short Term Loans and Advances (Refer Note 17.1). Being merely an accounting treatment for giving effect of the scheme, the above transaction and balance thereon is not disclosed in above related party disclosures.
4. Segment Reporting
Pursuant to the scheme of arrangement for merger of manufacturing business of Jindal Photo Limited having different photographic products, the management has classified the business in two reportable segment, as defined in Accounting standard - 17 (segment Reporting) as follows :
- Plastic Films Business
- Photographic Division
The Company has common assets for producing goods for domestic market and overseas market.
5. Provision for Post-sales Client support and Warranties:
Provisions for post-sales client support and warranties on certain products and services relating to photographic business of the Company are made towards expected cost of meeting such obligations of rectification/replacement, based on the expected future cash outflows and computed on total sales made during the year, based on past experience. Provision for post-sales client support are expected to be utilized over a period of one year.
6. (a) The Administration of Union Territory of Dadra & Nager Haveli vide its Notification dated 31st December, 1999 granted exemption for sales tax to the Demerged Entity M/s Jindal Photo Limited (now being merged with the Company M/s Jindal Poly Films Limited) and in view of legal opinion received from experts and as per Ads-12 such benefit being in nature of capital receipt has been reduced from Gross sales and credited to Capital Reserve.
(b) Further financial statements for the financial years 2005-06 to 2010-11 of Demerged Entity M/s Jindal Photo Limited (now being merged with the Company M/s Jindal Poly Films Limited) were prepared considering such benefit as revenue receipt and income tax was provided and paid at normal rate for respective year. The assessment of financial year 2005-06 to 2010-11 for which assessment proceedings u/s 153A is in progress, entity has filed revised income tax computations for such financial years claiming benefit of Rs. 1,12,88,56,658 as exempted income and tax liability was revised as per provisions of section 115JB of Income Tax Act, 1961 (MAT) at Rs. 22,78,69,632. As the claim is for the years for which normal revised return could not be filed, the effect of such claim of benefit is not considered and necessary effective entries will be passed on finality of the assessment. Year wise detail is as under:
7. (a) A sum of Rs.13,92,18,077 (previous year Rs.13,11,88,659) being the difference between domestic and imported raw material prices prevailing at the year ended on 31st March 2016 on account of advance licenses excess utilized for which exports are yet to be made, has been adjusted in the cost of raw material.
(b) Under the Package scheme of Incentive 2001/2007 approved by the Government of Maharashtra, the Company is entitled to industrial promotion subsidy to the extent of 100% of the fixed capital investment or to the extent of taxes paid to the state Government within a period of 7 years, whichever is lower. During the year, subsidy receivable under the above said scheme amounting to Rs 52,14,31,163 (previous year Rs. 51,57,72,707) has been added to Capital Reserve .
(c) The Export obligation undertaken by the company for import of capital equipments under EPCG scheme of the Central Government at the concessional rate of custom duty are in the opinion of the management expected to be fulfilled within their respective due dates/extended due date.
8. During the year, the Company had invested Rs. 39,29,00,000 in the Zero Percent redeemable preference share capital and Rs 249,00,00,000 in Zero Percent Optionally Convertible Preference shares M/s of Jindal India Powertech Limited (JIPL), a group company. JIPL is the holding Company of Jindal India Thermal Power Limited (the borrower).
9. (a) Certain old balances of sundry debtors and sundry creditors are subject to reconciliation and confirmation.
(b) sundry Debtors include Rs.53,23,605 (previous year Rs. 46,06,143) under litigation, AGAINST which legal cases are pending in various Courts for recovery. The same are considered good and realizable in the opinion of the management.
(c) In the opinion of the Board and to the best of their knowledge and belief, the realizable value of current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance sheet.
10. (a) Advance receivable in cash or in kind includes Rs. 28,254,171 (Previous Year Rs. 28,254,171 ) being the amount of custom duty deposited AGAINST import of capital goods assessed under provisional assessments in earlier year.
(b) Non - Current Investment includes 6 shares of Jindal Films India Ltd (Previously known as Jindal Metal & Mining Ltd) of which the Company is beneficial owner are held by certain individuals in fiduciary capacity.
(c) Pursuant to the scheme of Arrangement (Refer Note 30), investment held by Demerged Undertaking (M/s Jindal Photo Limited) in equity shares of M/s Jindal Imaging Limited and M/s Jindal Photo Imaging Limited has been transferred to Resulting Company (M/s Jindal Poly Films Limited), accordingly these equity shares has been considered as Non-Current Investments of the Resulting Company, however issuance of these shares in the name of M/s Jindal Poly Films Limited is under process.
(d) stores & spares consumed and salaries & wages incurred during the year for repair and maintenance of plant & machinery and sheds & building, have been charged to the former accounts wherever separation is not ascertainable.
11. (a) Discontinued Operation
Company has discontinued the operation of Partially Oriented Yarn (POY) facility at Gulaothi, Uttar Pradesh and Pet film facility at Khanvel unit as it has been terminated through abandonment in earlier years as per Accounting standard - 24 (Discontinuing Operations) referred to in section 133 of the Companies Act 2013.
Following is extracts of financial information included in loss from discontinued operations for the Gulaothi and Khanvel unit:-
(b) since FY 2006-07, the company was in the process of disposal of its unused plant & machineries and store items at Gulaothi Unit (Discontinued Operation). During the year, a part of such unused plant and machineries was reported to have been removed inappropriately. The management is taking due actions for recovery and do not consider any impairment/ provision for loss, if any, on this account as the credit balance of parties and realizable value of remaining assets is likely to exceed the book value of assets.
(c) As per Accounting standard -28 âImpairment of Assetsâ referred to in section 133 of the Companies Act 2013, no further impairment loss has been considered by the management in assets of Gulaothi & Khanvel unit.
12. Exceptional items represents Loss of Rs. 1,58,31,145 (previous year Rs 2,98,35,055) being exchange differences on translation/settlement of long term foreign currency loans for acquiring fixed assets.
13. Information related to Micro Enterprises and small Enterprises, as defined in the Micro, small and Medium Enterprises Development Act, 2006 (MsME Development Act), are given below. The information given below have been determined to the extent such enterprises have been identified on the basis of information available with the Company:
14. During the year, the erstwhile associate M/s Rexor Holding sAs has been merged with its wholly owned subsidiary M/s Rexor sAs, with effect from 1st April 2015, sanctioned as per order dated 21st October 2015 by an Foreign Authority (Greffe du Tribunal de Commerce de Vienne) and accordingly post-merger the surviving entity M/s Rexor sAs has become the associate of M/s Jindal Poly Films Limited. Pursuant to the scheme of merger, shares of M/s Rexor Holding sAs have been cancelled and in consideration proportionate shares as per the determined ratio, has been allotted in the surviving entity M/s Rexor sAs comprising 11163 Equity shares at Face Value of Euro 3506 allotted to M/s Jindal Poly Films Limited.
15. The Company has pledged 4,88,76,000 equity shares of Rs 10/- each of M/s Global Nonwoven Limited a subsidiary company and mortgaged 26.54 acres land of the Company situated at Nasik Maharashtra (Land being Leased out to Global
(i) Rs 716.79 Lacs (Previous year Rs. 2013.08 Lacs) - Repayable in one half yearly installment (Previous Year 3 equal half yearly installments), carrying fixed interest rate of 3.77% p.a. (Previous Year 3.77 % p.a.).
Rs 8124.73 Lacs (Previous Year Rs. 4375.00 Lacs) - Repayable in 5-6 Fixed half yearly equal installments (Previous Year 7-8 half yearly equal installments), carrying interest rate of (Libor 3.18%) p.a. (Previous Year (Libor 3.18%) p.a.).
Rs 8605.65 Lacs (Previous Year Nil)- Repayable in 18 Fixed half yearly equal installments (Previous Year Nil), carrying interest rate of (Euribor 0.85%) p.a. (Previous Year Nil).
Rs 11900.41 Lacs (Previous Year Rs 11213.94 Lacs) - Repayable in 20 Fixed quarterly equal installments (Previous Year 20 Fixed quarterly equal installments), carrying interest rate of (Libor 4.00%) p.a. (previous year (Libor 4.50%)).
(ii) Rs 5962.50 Lacs (Previous Year Rs. 7987.50 Lacs) - Repayable in 9 quarterly installments (Previous Year 13 quarterly
installments), carrying interest based on Base Rate (presently 10.15%) (previous year 10.60%).
Rs 1700.00 Lacs - Repayable in 21 quarterly installments (Previous Year Nil), carrying interest rate of 10.60% p.a. (Previous Year Nil).
Securities
(i) Secured by hypothecation of all stocks of raw materials, semi finished goods, finished goods, goods in transit, stores and spares and book debts of the plastic films business of the company .These are further secured by way of second pari-pasu charge on immovable & movable properties of the plastic film business of the company situated at Gulaothi (U.P.) and Nasik (Maharashtra).
(ii) Secured by first charge by way of hypothecation of stocks of raw material, semi finished and finished goods and consumable stores, spares and book debts and receivables both present and future of the photographic division of the company, ranking paripassu with working capital loans sanctioned by other participating banks for photographic division of the Company.
16. Includes the depreciation related to discontinued operations, amounting Rs.75,98,197 (previous year Rs. 1,60,75,255).
17. Interest Expenses and Foreign Exchange Fluctuations directly attributable to the acquisition of fixed assets are being capitalized during the year as part of the cost of the assets up to the date of such asset is ready for its intended use aggregating Rs 4,00,98,225 and Rs 6,79,81,383 respectively.
18. Management based on the internal and technical evaluation (covering past experience and the performance of substantial parts of the plant & machineries of the site) has identified, to the extent practicable, significant parts i.e. components of fixed assets, primarily consisting of plant & machineries and reassessed the useful life of these components for adoption of component accounting approach, as applicable w.e.f. 1st April 2015 to the Companies Act 2013 and believe that useful life determined/applied as per schedule II on these substantial identified components, fairly reflects its estimate of useful life and residual value of machineries.
Mar 31, 2014
1 DISCLOSURE UNDER CLAUSE 32
Loans & advances outstanding at the year end and maximum amount
outstanding during the year, which are required to be disclosed Under
clause 32 of the listing agreement are as under:-
2 SEGMENT REPORTING AS PER AS-17
i) Primary Segment
The Company''s business activity falls within a single primary business
segment of Flexible Packaging.
The company has common fixed assets for producing goods for domestic
and overseas markets. Hence, separate figures for capital employed can
not be furnished.
3 A) As required by Accounting Standard-18 "Related party disclosures"
are as follows.
List of Related parties
a. Subsidiary Companies
1 Jindal Films India Ltd (Previously Known as Jindal Metal & Mining
Limited )
2 Jindal Metal & Mining International Limited
3 Global Nonwovens Limited (w.e.f. 14.02.2014)
4 JPF Netherland B.V. (w.e.f. 18.01.2013)
5 JPF Dutch B.V. (w.e.f. 21.01.2013)
6 JPF Netherland Holding B.V. (w.e.f. 28.01.2013)
7 JPF USA Holding LLC (w.e.f. 23.01.2013)
8 JPF USA LLC (w.e.f. 24.01.2013)
9 JPF ITALY Holding SA (w.e.f. 14.05.2013)
10 JPF Luxembourg Holding S.a.r.l (Ltd. Liab. Co.) (w.e.f.14.05.2013)
11 Jindal Films America LLC (w.e.f. 01.10.2013)
12 Films Shawnee LLC (w.e.f. 01.10.2013)
13 Films LaGrange LLC (w.e.f. 01.10.2013)
14 Films Macedon LLC (w.e.f. 01.10.2013)
15 Jindal Films Europe Virton LLC (w.e.f. 01.10.2013)
16 Jindal Films Europe Brindsi Srl (w.e.f. 01.10.2013)
17 Jindal Films Europe Kerkrade B.V (w.e.f. 01.10.2013)
18 Jindal Films Europe S.a.r.l (w.e.f. 01.10.2013)
19 Jindal Films Singapore Pte.Ltd (w.e.f. 01.10.2013)
20 Jindal Films (Shanghai) Co. Ltd. (w.e.f. 10.09.2013)
21 Jindal Films Capital LLC (w.e.f. 01.10.2013)
22 Films International LLC (w.e.f. 03.12.2013)
b. Associates
1 Rexor Holding SAS
(Formerly Known as Jindal France SAS)
2 Hindustan Powergen Limited
NOTES
c. Key Management Personnels
1 Sh. Hemant Sharma (Upto 28.02.14)
2 Sh. R.B. Pal
3 Sh. Sameer Banerjee (Upto 25.09.13)
4 Sh. Inna Chandrakantha Rao (w.e.f. 01.03.14)
5 Sh. Sanjay Mittal (w.e.f. 25.09.13)
d. Enterprise owned by Major Shareholders of reporting Enterprise
1 Jindal Photo Investment Limited
2 Soyuz Trading Company Limited
3 Rishi Trading Company Limited
4 Consolidated Finvest & Holdings Ltd.
5 Jindal Poly Investment & Finance Company Limited
6 Jindal India Limited
7 Anchor Image and Films Private Limited
8 Anchor Image and Films Pte. Limited Signapore
e. Other Enterprises
1. Jindal India Powertech Limited
2. Jindal India Thermal Power Limited
3.2 Contingent Liabilities:
a.Bank Guarantees 16,94,89,982 18,50,76,397
b.Corporate Guarantees in favour of
overseas lender of Subsidiaries 9,14,36,14,000
c. Outstanding Letters of Credit
(Including Capital Goods) 89,31,49,730 72,66,17,154
d. Claims against Company, not
acknowledged as debts 6,26,28,134 1,07,68,060
e.Demands raised by authorities against
which, Company has filed appeals: -
i) Income Tax 13,41,84,802 5,11,44,555
ii) Excise Duties/Custom/Service Tax 8,13,13,695 7,95,76,725
iii) Sales Tax 19,29,34,553 19,21,49,092
3.3 Pursuant to the adoption of Accounting Standards as prescribed by
Companies (Accounting Standards) Rules,2006 issued by Ministry of
Corporate Affairs vide notification no.G.S.R.914 (E) dated 29th
December, 2011 and as required by Accounting Standard 11, Loss of Rs
26,76,48,936 (previous year loss of Rs 21,59,98,217) on
translation/settlement of foreign currency monetary items including
borrowings have been shown as exceptional items in the profit and loss
account.
3.4 A sum of Rs.45,676,415 (previous year Rs.11,322,004) being the
difference between domestic vs. imported raw mate- rial prices
prevailing at the year ended on 31st March 2014 on account of advance
licences excess utilized for which exports are yet to be made, has been
adjusted in the cost of raw material.
Export Incentive under Focus Market Scheme (FMS) amount to Rs
40,999,382. (Previous year Rs. Nil) has been credited in the account of
raw material.
3.5 Advance receivable in cash or in kind includes Rs. 28,254,171
(Previous Year Rs. 28,254,171 ) being the amount of custom duty
deposited against import of capital goods assessed under provisional
assessments in earlier year.
3.6 Non  Current Investment includes 6 shares of Jindal Films India
Ltd (Previously known as Jindal Metal & Mining Ltd). of which the
Company is beneficial owner are held by certain individuals in
fiduciary capacity.
3.7 Certain old balances of sundry debtors and sundry creditors are
subject to reconciliation and confirmation.
3.8 Under the Package Scheme of Incentive 2001/2007 approved by the
Government of Maharashtra, the Company is entitled to industrial
promotion subsidy to the extent of 100% of the fixed capital investment
or to the extent of taxes paid to the State Government within a period
of 7 years, whichever is lower. During the year amount of subsidy
receivable under the above said scheme amounting to Rs
512,030,553(previous Year Rs. 397,601,338) has been added to Capital
Reserve.
3.9 In the opinion of the Board and to the best of their knowledge
and belief, the realizable value of current assets, loans and advances
in the ordinary course of business would not be less than the amount at
which they are stated in the Balance Sheet.
3.10 Stores and spares consumed and salaries and wages incurred during
the year for repair and maintenance of plant & machinery and sheds &
building, have been charged to the former accounts wherever separation
is not ascertainable.
3.11 The Company has not received from suppliers regarding their
status under the Micro, Small and Medium Enterprises Development Act,
2006 and hence disclosures, if any, relating to amounts unpaid as at
the year end together with interest paid/payable as required under the
said Act have not been given.
3.12 The Export obligation undertaken by the company for import of
capital equipments under EPCG scheme of the Central Government at the
concessional rate of custom duty are in the opinion of the management
expected to be fulfilled within their respective due dates/extended due
date.
3.13 a) Discontinued Operation
Company has discontinued the operation of Partially Oriented Yarn (POY)
facility at Gulaothi, Uttar Pradesh and Pet film facility at Khanvel
unit as it has been terminated through abandonment in earlier years as
per Accounting Standard -24 issued by ICAI.Following is selected
financial information included in loss from discontinued opera- tions
for the Gulaothi and Khanvel unit:-
b) As per Accounting standard -28 " Impairment of Assets" issued by
ICAI ,no further impairment loss has been considered by the management
in assets of Gulaothi & Khanvel unit.
3.14 During the financial year, the Company has demerged its
investment division with Jindal Poly Investment and Finance Company
Limited (JPIFCL) as per Section 391 to 394 of the Companies Act, 1956.
The Hon''ble High Court of Judicature at Allahabad has approved the
scheme and passed order on 16th May, 2013 to demerge the Company and
the appointed date was 1st April, 2012. Consequently for the year ended
31st March 2014 the demerger has been effected in the books of accounts
and accordingly the figure of previous year are re casted. Pursuant to
the order of Hon''ble High Court, JPIFCL has issued and allotted equity
shares in the ratio of 1 (one) equity share of face value of Rs 10/-
each, fully paid-up, to each shareholder of the Company for every 4
(four) equity shares of face value of Rs.10/- each held by such
shareholder in the Company on the record date i.e. 18th July, 2013.
Accordingly, JPIFCL has issued and allotted to the shareholders of the
Company a total of 1,05,11,929 fully paid up equity shares of Rs.10/-
each. The equity shares of JPIFCL are listed on the National Stock
Exchange of India Limited (NSE) and the Bombay Stock Exchange Limited
(BSE).
3.15 During the quarter company acquire 4,28,00,000 equity shares of
Global Non woovens Limited (GNL) with an investment of Rs.42.80 crore,
after acquisition GNL become subsidiary of the Company during the year.
The Company has pledged 3,61,08,000 equity shares of Rs.10/- each of
Global Nonwoven Limited "GNL" a subsidiary Company and mortgaged 26.54
acres land of the Company situated at Nasik, Maharashtra (Leased out to
GNL) to SBICAP Trustee Company Limited as security for Rs. 287.70 crore
loan availed by GNL from consortium of Bankers.
3.16 During the year the Company had invested INR 167 Crores in the
Zero Percent Redeemable Preference Share Capital (Redeemable at a
premium of 10% within 15 year from the date of allotment) of Jindal
India Powertech Limited (JIPL), a group-SPV company. JIPL is the
holding Company of Jindal India Thermal Power Limited, which is setting
up Power Plant (600MW x 2) at village Derang, District Angul, Odisha.
Further, pursuant to the resolutions passed by the Board of Directors
of the the Company from time to time and the last one dated 20th July
2013, the Company, JIPL and Jindal Photo Limited have jointly and
severally undertaken to the lenders of JITPL to meet any requirement
towards shortfall in equity and other project costs overrun in JITPL,
in the manner and form satisfactory to JITPL lenders.
3.17 The Company has completed the ongoing overseas acquisition of
BOPP Films business (comprising of five manufacturing units) of
ExxonMobil USA through its overseas subsidiary namely JPF Netherlands
BV(51 % holding by the company and balance 49 % holding hold by Anchor
Image & Films Pte Ltd, Singapore) and its steps down subsidiaries by
way of investment in equity capital, unsecured loan and Corporate
guarantees to the extent of USD 160 million in favour of lenders of
overseas entities for the purpose. The interests in the overseas
acquisition are reflected in consolidated financial statements of the
Company as required by Indian Accounting Standard.
3.18 The Income Tax Department had conducted search and seizure u/s
132 and survey u/s 133A of the Income Tax Act, 1961 during the
financial year 2011-12 on various premises of the company. The
department had issued notice u/s 153 A for reassessment for the
assessment years 2006-07 to 2011-12 . Assessment for AY 2010-11 &
2011-12 has been completed and are contested before CIT(A). Assessment
for remaining years are in progress.
3.19 Previous year''s figures have been regrouped and/or rearranged
wherever required.
Mar 31, 2013
1 SEGMENT REPORTING AS PER AS-17
i) Primary Segment
Business Segment : The Company''s operating business are organised and
managed separately according to the nature of products.
ii) Secondary Segment
Geographical Segment : The analysis of geographical segment is based on
the geographical location of the customers.
iii) Corporate income and expenses are considered as part of
unallocable income and expense'' which are not identifiable to any
business segment.
2 A) As required by Accounting Standard-18 "Related party disclosure"
issued by the Institute of Chartered Accountants of India are as
follows:-
List of Related parties
a. Subsidiary Companies
1 Jindal Poly Films Investment Limited
2 Jindal Metal & Mining Limited
3 Jindal Metal & Mining International Limited
4 Jindal Poly Investment & Finance Company Limited (w.e.f.11.07.2012)
5 Jindal Resources (Muzambique) Lda (upto 10.09.2012)
6 Haldia Synthetic Rubber Ltd (upto 31.08.2012)
7 Trans India Mining Lda (upto 05.11.2012)
8 JPF Netherland B.V (w.e.f.18.01.2013)
9 JPF Dutch B.V (w.e.f. 21.01.2013)
10 JPF Netherland Holding B.V (w.e.f. 28.01.2013)
11 JPF USA Holding LLC (w.e.f. 23.01.2013)
12 JPF USA LLC (w.e.f. 24.01.2013)
b. Associates
1 Jindal India Powertech Limited
2 Rexor Holding SAS
(Formerly Known as Jindal France SAS)
3 Hindustan Powergen Limited
4 Consolidated Green Finvest Ltd.
c. Key Management personnels
1 Sh. Hemant Sharma
2 Sh. R.B. Pal
3 Sh. Sameer Banerjee
d. Controlling Enterprises/Major Shareholders of reporting Enterprise
1 Jindal Photo Investment Limited
2 Soyuz Trading Company Limited
3 Rishi Trading Company Limited
3.1 Pursuant to the adoption of Accounting Standards as prescribed by
Companies (Accounting Standards) Rules''2006 issued by Ministry of
Corporate Affairs vide notification no.G.S.R.914 (E) dated 29th
December'' 2011 and as required by Accounting Standard 11'' Loss of Rs
2159.98 lacs (previous year loss of Rs 4763.93 lacs) on
translation/settlement of foreign currency monetary items including
borrowings have been shown as exceptional items in the profit and loss
account.
a) During the previous year the company has made a provision of Rs
102.24 Lacs for permanent diminiution of its investment in Jindal
Resources Muzambique Lda ''(a subsidiary Company) which has been shown
as exceptional item.
b) During the Previous year the company has made a provision of Rs 5.00
Lacs for the diminution of its investment in Haldia Sythetic Rubber Ltd
(a Subsidiary Company)due to the company has not been able to start its
business '' which has been shown as exceptional item.
c) During the Previous year'' the Company has reversed Rs.560.00 Lacs/-''
which was charged to profit and loss account in the previous year on
account of advance paid to vendor.d) During the Previous year'' the
Company has disinvested 60% of its total shareholding in Jindal France
SAS (wholly owned subsidiary)'' on which there is a loss of Rs. 1876.50
lacs. The balance 40% of the holding require a provision of Rs.1245.02
lacs on account of diminution in value of investment'' thus total amount
of loss for Rs.3121.52 lacs has been shown as exceptional item.
3.2 A sum of Rs.11''322''004 (previous year Rs.12''469''349) being the
difference between domestic vs. imported raw material prices prevailing
at the year ended on 31st March 2013 on account of advance licences
excess utilized for which exports are yet to be made'' has been adjusted
in the cost of raw material.
3.3 Export Incentive under Duty Entitlement Pass Book Scheme (DEPB)
amount to Rs. Nil (Previous year Rs. 114''565''148) has been credited in
the account of raw material.
3.4 Advance receivable in cash or in kind includes Rs. 28''254''171
(Previous Year Rs. 28''254''171 ) being the amount of custom duty
deposited against import of capital goods assessed under provisional
assessments in earlier year.
3.5 Non  Current Investment includes the following:- (a) 6 shares of
Jindal Metal & Mining Ltd. of which the Company is beneficial owner are
held by certain individuals in fiduciary capacity.
(b) 6 shares of Jindal Poly films Investments Ltd. of which the Company
is beneficial owner are held by certain individuals in fiduciary
capacity.
(c) 6 shares of Jindal Poly Investment & Finance Co. Ltd of which the
Company is beneficial owner are held by certain individuals in
fiduciary capacity.
3.6 Certain old balances of sundry debtors and sundry creditors are
subject to reconciliation and confirmation.
3.7 a) Under the Package Scheme of Incentive 2001/2007 approved by
the Government of Maharashtra'' the Company is entitled to industrial
promotion subsidy to the extent of 100% of the fixed capital investment
or to the extent of taxes paid to the State Government within a period
of 7 years'' whichever is lower.b) Till 31.03.12'' as per accounting
policy followed by the company ''the amount of such subsidy receivable
was shown under the head "Revenue from Opeartions"/"Other Income".
During the year'' in view of legal opinion received from experts'' these
subsidy should be governed by AS-12. Based on AS-12 dealing with
accounting treatment of Government grant'' such incentives of Industrial
promotion subsidy received are in nature of Capital receipt and should
be credited to Capital reserve instead of "Revenue from
Operations/Other Income".
Accordingly'' during the year amount of subsidy receivable under the
above said scheme amounting to Rs 39''76''01''338 has been added to
Capital Reserve . Consequently the profit for the current year is
decreased by Rs 39''76''01''338 due to the change of above accounting
policy (as required by AS-5) ''and not comparable with previous year
figure to that extent. Further the impact of Rs.126''90''09''595 relating
to the amount of Subsidy received/receivable in preceding financial
years up to 31st March'' 2012 which are reflected in "Revenue from
opeartions/other income" in that financial year are not transferred to
capital reserve.
3.8 In the opinion of the Board and to the best of their knowledge
and belief'' the realizable value of current assets'' loans and advances
in the ordinary course of business would not be less than the amount at
which they are stated in the Balance Sheet.
3.9 Stores and spares consumed and salaries and wages incurred during
the year for repair and maintenance of plant & machinery and sheds &
building'' have been charged to the former accounts wherever separation
is not ascertainable.
3.10 The Company has not received from suppliers regarding their
status under the Micro'' Small and Medium Enterprises Development Act''
2006 and hence disclosures'' if any'' relating to amounts unpaid as at
the year end together with interest paid/payable as required under the
said Act have not been given.
3.11 The Export obligation undertaken by the company for import of
capital equipments under EPCG scheme of the Central Government at the
concessional rate of custom duty are in the opinion of the management
expected to be fulfilled within their respective due dates/extended due
date.
3.12 a) Discontinued Operation
Company has discontinued the operation of Partially Oriented Yarn (POY)
facility at Gulaothi'' Uttar Pradesh and Pet film facility at Khanvel
unit as it has been terminated through abandonment in earlier years as
per Accounting Standard -24 issued by ICAI.Following is selected
financial information included in loss from discontinued operations for
the Gulaothi and Khanvel unit:-
b) As per Accounting standard -28 " Impairment of Assets" issued by
ICAI ''no further impairment loss has been considered by the management
in assets of Gulaothi & Khanvel unit.
3.13 The Board of Directors of the company at its meeting held on 26th
November'' 2012 passed a resolution for demerger of its investment
division with Jindal Poly Investment and Finance Company Limited. (a
wholly owned subsidiary). The same has been sanctioned on dated 16th
May 2013 by Honb''le High Court of Allahabad .The Company is in the
course of receiving the formal order and filing the same with ROC and
effect will be given in due course.
3.14 The company has pledged 428''571''429 equity shares of Rs. 10 each
(Rs. 7 called and paid up) of Jindal India Powertech Limited "JIPL"'' an
associate Company to IFCI Ltd as security for 14 % OCD issued by JIPL
and subscribed by IFCI Ltd in terms of the Debenture subscription
agreement between JIPL and IFCI Ltd for a sum of Rs 300 Crore.
3.15 Search & Seizure:
The Income Tax Department had conducted search and seizure u/s 132 and
survey u/s 133A of the Income Tax Act''1961 during the financial year
2011-12 on various premises of the company and its directors/promoters
and had seized various records of the company. Demand if any arises on
this account will be provided as and when the case is finalized.
3.16 During the year one subsidiary company namely JPF Netherland B.V
was incorporated and four step down subsidiaries namely (i) JPF Dutch
B.V. (ii) JPF Netherland Holding B.V. (iii) JPF USA Holding LLC and
(iv) JPF USA LLC were incorporated'' but no investment business activity
have carried out till 31.03.2013
3.17 Previous year''s figures have been regrouped and/or rearranged
wherever required.
Mar 31, 2012
1 RELATED PARTY DISCLOSURE
A) As required by Accounting Standard-18 "Related party dosclosure"
issued by the Institute of Chartered Accountants of India are as
follows:-
List of Related parties
a. Associates
1 Jindal India Powertech Limited
2 Rexor Holding SAS (W.e.f 29.03.2012) (Formerly Known as Jindal France
SAS)
b. Companies
1 Soyuz Trading Company Limited
2 Rishi Trading Company Limited
3 Consolidated Photo and Finvest Limited
4 Jindal Photo Investment Limited
5 Consolidated Finvest and Holding Limited
6 Jindal Photo Limited
7 Jasmin Investment Limited
8 Consolidated Finvest and Investment Limited
9 Passion Tea Pvt. Limited
10 Anchor Image & Films Pvt. Limited
11 Jindal India Limited
12 Universal Foils Limited
c. Subsidiary Companies
1 Hindustan Thermal Power Generation Limited (Formerly Hindustan
Polysters Ltd.)
2 Jindal Solar Rajasthan Limited
3 Jindal Solar Powertech Limited
4 Jindal Poly Films Investment Limited
5 Jindal Metal & Mining Limited
6 Haldia Synthetic Rubber Ltd
7 Jindal Resources (Mozambique) Lda
8 Trans Indian Mining Lda
9 Jindal Metal & Mining International Limited (w.e.f.15.08.2011)
10 Jindal Poly Finance Limited (w.e.f 13.05.2011)
11 Rexor Holding SAS (Up to 28.03.2012) (Formerly Known as Jindal
France SAS)
12 Rexor SAS ( Up to 28.03.2012)
31.03.12 31.03.11
Rs. Rs.
2.1. Estimated amount
of contracts remaining
to be executed on capital
account and
not provided for
(net of advances) 1,276,561,221 770,481,459
2.2 Contingent Liabilities:
a. Bank Guarantees 159,829,349 128,897,507
b. Outstanding Letters
of Credit (Including
Capital Goods) 1,586,719,520 1,290,308,211
c. Claims against Company,
not acknowledged as debts 10,768,060 16,401,284
d. Uncalled liability of
partly paid shares 1,308,000,000 1,308,000,000
e. Demands raised by
authorities against which,
Company has filed appeals:-
i) Income Tax 58,128,668 58,128,668
ii) Excise Duties/
Service Tax 53,665,347 Ã
iii) Sales Tax 181,158,981 22,493,097
(iv) Custom Duties 61,366,000 61,366,000
2.3 Exceptional items includes following:- a) During the year, the
Company has disinvested 60% of its total shareholding in Jindal France
SAS (wholly owned subsidiary), on
which there is a loss of Rs. 1876.50 lacs. The balance 40% of the
holding require a provision of Rs.1245.02 lacs on account of diminution
in value of investment, thus total amount of loss for Rs.3121.52 lacs
has been shown as exceptional item.
(b) Pursuant to the adoption of Accounting Standards as prescribed by
Companies (Accounting Standards) Rules,2006 issued by Ministry of
Corporate Affairs vide notification no.G.S.R.914 (E) dated 29th
December, 2011 and as required by Accounting Standard 11 Ã
I. Loss of Rs 4763.93 lacs (previous year gain of Rs 612.17 lacs) on
translation/settlement of foreign currency monetary items including
borrowings have been shown as exceptional items in the profit and loss
account.
II. Gain on account of hedging against export exposures amounting to
Rs Nil, (previous year Rs Nil) have been accounted under the head other
income/(other expenses) in the profit & loss account.
(c) During the year the company has made a provision of Rs 102.24 Lacs
for permanent diminiution of its investment in Jindal Resources
Muzambique Lda, (a subsidiary Company) which has been shown as
exceptional item.
(d) During the year the company has made a provision of Rs 5.00 Lacs
for the diminution of its investment in Haldia Sythetic Rubber Ltd (a
Subsidiary Company)due to the company has not been able to start its
business, which has been shown as exceptional item.
(e) During the year, the Company has reversed Rs.560,00,000/-, which
was charged to profit and loss account in the previous year on account
of advance paid to vendor.
2.4 A sum of Rs.12,469,349 (previous year Rs.21,197,894) being the
difference between domestic vs. imported raw material prices prevailing
at the year ended on 31st March 2012 on account of advance licences
excess utilized for which exports are yet to be made, has been adjusted
in the cost of raw material.
Export Incentive under Duty Entitlement Pass Book Scheme (DEPB) amount
to Rs. 114,565,178 (Previous year Rs. 174,115,932) has been credited in
the account of raw material.
2.5 Advance receivable in cash or in kind includes Rs. 28,254,171
(Previous Year Rs. 28,254,171 ) being the amount of custom duty
deposited against import of capital goods assessed under provisional
assessments in earlier year.
2.6 Non à Current Investment includes the following:- (a) 600 shares
of Hindustan Thermal Power Generation Ltd. (Formerly Hindustan
Polyester Ltd.) of which the Company is beneficial owner are held by
certain individuals in fiduciary capacity.
(b) 6 shares of Jindal Metal & Mining Ltd. of which the Company is
beneficial owner are held by certain individuals in fiduciary capacity.
(c) 6 shares of Jindal Poly films Investments Ltd. of which the Company
is beneficial owner are held by certain individuals in fiduciary
capacity.
(d) 6 shares of Haldia Synthetic Rubber Ltd of which the Company is
beneficial owner are held by certain individuals in fiduciary capacity.
(e) 6 shares of Jindal Poly Finance Ltd of which the Company is
beneficial owner are held by certain individuals in fiduciary capacity.
2.7 Certain old balances of sundry debtors and sundry creditors are
subject to reconciliation and confirmation.
2.8 Under the Package Scheme of Incentive approved by the Government
of Maharashtra, the Company is entitled to industrial promotion subsidy
to the extent of 100% of the fixed capital investment or the extent of
taxes paid to the State Government within a period of 7 years,
whichever is lower. During the year, the Company is entitled for an
amount of Rs. 432,384,451, (previous year Rs.474, 219,586), under that
scheme and the same has been shown as revenue from operation.
2.9 In the opinion of the Board and to the best of their knowledge
and belief, the realizable value of current assets, loans and advances
in the ordinary course of business would not be less than the amount at
which they are stated in the Balance Sheet.
2.10 Stores and spares consumed and salaries and wages incurred during
the year for repair and maintenance of plant & machinery and sheds &
building, have been charged to the former accounts wherever separation
is not ascertainable.
2.11 The Company has not received from suppliers regarding their
status under the Micro, Small and Medium Enterprises Development Act,
2006 and hence disclosures, if any, relating to amounts unpaid as at
the year end together with interest paid/payable as required under the
said Act have not been given.
2.12 The Export obligation undertaken by the company for import of
capital equipments under EPCG scheme of the Central government at the
concessional rate of custom duty are in the opinion of the management
expected to be fulfilled within their respective due dates/extended due
dates.
2.13 During the year a part of the Work In Progress Plant & Machinery
at Gulaothi & Khanvel Units were disposed off during the year for Rs.
230.84 Lacs. The same has been adjusted from Gross Block of the WIP
under Fixed Asset, the profit / loss, if any, is ascertainable only
after completion of the total disposal of Plant & Machinery.
2.14 Search and seizure
The Income Tax Department had conducted search and seizure u/s 132 and
survey u/s 133A of the Income Tax Act,1961 on 14.11.2011 on various
premises of the company and its directors/promoters and had seized
various records of the company .
Till date no notice has been received by the company for initiation of
proceedings u/s 153C.The tax liability, if any arises will be provided
as and when the case is finalized.
2.15 During the year , company has pledged 428,571,429 equity shares
of Rs. 10 each (Rs.7 Called and paid up)of Jindal India Powertech
limited ("JIPL"), an associate company, to IFCI Ltd as security for 14
% OCD issued by JIPL subscribed by IFCI Ltd in terms of the Debenture
subscription agreement between JIPL ans IFCI Ltd for a sum of Rs. 300
crore.
2.16 Previous year's figures have been regrouped and/or rearranged
wherever required.
Mar 31, 2011
31.03.2011 31.03.2010
Rs. Rs.
1. Contingent Liabilities:
a. Bank Guarantees 128,897,507 128,897,507
b. Outstanding Letters of Credit
(Including Capital Goods) 1290,308,211 444,994,483
c. Claims against Company, not
acknowledged as debts 16,401,284 16,721,284
d. Uncalled liability of
partly paid shares 1308,000,000 3309,000,000
e. Demands raised by authorities
against which, Company has filed
appeals:
i) Income Tax 58,128,668 77,673,397
ii) Excise Duties - 19,680,000
iii) Sales Tax 22,493,097 22,493,097
iv) Custom Duties 61,366,000 8,160,000
2. Computation of Net Profit under section 198 of the Companies Act,
1956 for the purpose of remuneration payable to Whole Time Directors
has not been enumerated as no commission is payable to them.
b) During the year an amount of Rs. 48,162,594 has been transferred to
Repair and Maintenance from Capital Work in progress.
3. Term Loan installments due within next one year is amounting to Rs.
7082.27 Lacs. (Rs. 2979.91 lacs).
4. Pursuant to the adoption of Accounting Standards as prescribed by
Companies (Accounting Standards) Rules,2006 issued by Ministry of
Corporate Affairs vide notification no. G.S.R.739 (E) dated December 7,
2006 and as required by Accounting Standard 11 Ã
a) Gain of Rs 612.17 lacs (previous year Rs. 4649.40 lacs) on
translation/settlement of foreign currency monetary items including
borrowings have been shown as exceptional items in the profit and loss
account.
b) Gain on account of hedging against export exposures amounting to Rs.
Nil, (previous year loss of Rs. 50.90 lacs) have been accounted under
the head other income/(other expenses) in the profit & loss account.
5. A sum of Rs.21,197,894 (previous year Rs.12,394,101) being the
difference between domestic vs. imported material prices prevailing at
the end of the period ended 31st March 2011 on account of advance
licences excess utilized for which exports are yet to be made, has been
adjusted in the cost of raw material.
Export Incentive under Duty Entitlement Pass Book Scheme (DEPB) amount
to Rs. 174,115,932 (Previous year Rs. 152,977,025) has been credited
in the account of raw material.
6. Advance receivable in cash or in kind includes Rs. 28,254,171
(Previous Year Rs. 28,254,171) being the amount of custom duty
deposited against import of capital goods assessed under provisional
assessments in earlier year.
7 (a) 600 shares of Hindustan Thermal Power Generation Ltd. (Formerly
Hindustan Polyester Ltd.) of which the Company is beneficial owner are
held by certain individuals in fiduciary capacity.
(b) 6 shares of Jindal Metal & Mining Ltd. of which the Company is
beneficial owner are held by certain individuals in fiduciary capacity.
(c) 6 shares of Jindal Poly Films Investments Ltd. of which the Company
is beneficial owner are held by certain individuals in fiduciary
capacity.
(d) 6 shares of Haldia Synthetic Rubber Ltd. of which the Company is
beneficial owner are held by certain individuals in fiduciary capacity.
8. Certain old balances of sundry debtors and sundry creditors are
subject to reconciliation and confirmation.
9. Under the Packaging Scheme of Incentive approved by the Government
of Maharashtra, the Company is entitled to industrial promotion subsidy
to the extent of 100% of the fixed capital investment or the extent of
taxes paid to the State Government within a period of 7 years,
whichever is lower. During the year, the Company is entitled for an
amount of Rs.474,219,586 (Previous Year Rs.273,237,356), under that
scheme and the same has been shown as income, under the head of other
income.
10. In the opinion of the Board and to the best of their knowledge and
belief, the realizable value of current assets, loans and advances in
the ordinary course of business would not be less than the amount at
which they are stated in the Balance Sheet.
11. Stores and spares consumed and salaries and wages incurred during
the year for repair and maintenance of plant & machinery and sheds &
building, have been charged to the former accounts wherever separation
is not ascertainable.
12. The Company has not received from suppliers regarding their status
under the Micro, Small and Medium Enterprises Development Act, 2006 and
hence disclosures, if any, relating to amounts unpaid as at the year
end together with interest paid/payable as required under the said Act
have not been given.
13. The Export obligation undertaken by the company for import of
capital equipments under EPCG/100% EOU scheme of the Central Government
at the concessional or zero rate of custom duty are in the opinion of
the management expected to be fulfilled within their respective due
dates/extended due dates.
14. a) As per Accounting Standard 28 issued by ICAI, impairment loss
on Assets at Khanvel (Being one of the unit Manufacturing PET Films of
the company) was provided by the company during the year ended 31st
March 2003. Now in the opinion of the management, there is no further
loss on account of impairment of assets, lying at Khanvel in which
operations have been suspended.
b) (i) Operations in respect of Company's units at Gulaothi were lying
suspended. However carrying cost of these units are reflected at
historical cost. The management is of view that there is no loss on
account of impairment of assets as required by AS 28 issued by ICAI as
the realisable value of these assets are higher than the carrying cost.
(ii) A part of the scrapped Plant & Machinery at Gulaothi was disposed
off during the year for Rs. 77.16 Lacs. The same has been adjusted from
Net Block as profit / loss, if any, is ascertainable only after
completion of the total disposal of Plant & Machinery.
15. Previous year's figures have been regrouped and/or rearranged
wherever required.
16 Additional information pursuant to the provision of the part II of
Schedule II of the Companies, Act,1956 (as certifi ed & classifi ed by
the Management)
(The Company has issued and allotted 2,30,21,138 equity shares on 26th
October, 2010 as bonus shares by capitalizing reserves. Consequently
the comparative EPS fi gures in all the cases have been recalculated
giving effect of the Bonus Shares, as required by Accounting Standard
(AS) 20).
17 Segment Reporting Policies
i) Primary Segment
Business Segment : The Company's operating business are organised and
managed separately according to the nature of products.
ii) Secondary Segment
Geographical Segment : The analysis of geographical segment is based on
the geographical location of the customers.
iii) Corporate income and expenses are considered as part of
unallocable income and expense, which are not identifi able to any
business segment.
18 A) As required by Accounting Standard-18 "Related Party Disclosure"
issued by the Institute of Chartered Accountants of India are as
follows:-
List of Related Parties
a. Companies/Individuals/Associates:
1 Sh. B.C.Jindal
2 Sh. S.S.Jindal
3 Smt. Subhadra Jindal
4 Miss Akriti Jindal
5 Agile Properties Ltd.
6 Bajaloni Group Ltd.
7 Conslidated Finvest & Holdings Ltd.
8 Consolidated Buildwell Ltd.
9 Consolidated Photo & Finvest Ltd.
10 Consolidated Realtors Ltd.
11 Jesmine Investment Ltd.
12 Jindal Imaging Ltd.
13 Jindal India Ltd.
14 Jindal Meadows Ltd.
15 Jindal Photo Investments Ltd.
16 Jindal Photo Ltd.
17 Jindal Realtors Ltd.
18 Jindal India Thermal Power Ltd.
19 Jumbo Finance Ltd.
20 Jupax Barter Pvt..Ltd.
21 Pasion Tea Private Ltd.
22 Rishi Trading Co. Ltd.
23 Soyuz Trading Co. Ltd.
24 Vigile Farms Ltd.
25 Jindal India Finvest & Holdings Limited
26 Mandakini Coalmines Limited
27 Jindal India Powertech Limited
28 Jindal India Powerventures Limited
29 Jindal Buildmart Limited
30 Jindal Realmart Private Limited
31 Hindustan Powergen Limited
32 Jindal Minerais & Metais (Mozambique) Lda
33 Consolidated Green Finvest P Ltd.
b. Subsidiary Companies
1 Hindustan Thermal Power Generation Limited
2 Jindal France SAS
3 Rexor SAS
4 Jindal Solar Rajasthan Limited
5 Jindal Solar Powertech Limited
6 Jindal Poly Films Investment Limited (w.e.f. 03.11.2010)
7 Jindal Metal & Mining Limited (w.e.f. 16.11.2010)
8 Haldia Synthetic Rubber Ltd (w.e.f. 21.02.2011)
9 Jindal Resources (Mozambique) Lda (w.e.f. 05.10.2010)
10 Trans Indian Mining Lda (w.e.f. 17.03.2011)
c. Key Management Personnel
1 Sh. R.B. Pal
2 Sh. Sameer Banerjee
3 Sh. Sanjay Mittal
Mar 31, 2010
31.03.10
Rs.
31.03.09
Rs.
1. Estimated amount of contracts
remaining to be executed on capital
account and not provided for
(net of advances) 61,016,528 143,035,496
2. Contingent Liabilities:
a. Bank Guarantees 128,897,507 90,689,607
b. Outstanding Letters of Credit
(Including Capital Goods) 444,994,483 1,222,201,138
c. Claims against Company, not
acknowledged as debts
9,369,284 94,931,000
d. Uncalled liability of partly
paid shares 3,309,000,000 1,284,000,000
e. Demands raised by authorities
against which, Company has filed
appeals: -
i) Income Tax 77,673,397 445,38,332
ii) Excise Duties 27,032,000 274,61,000
iii) Sales Tax 22,493,097 224,93,097
iv) Custom Duties 8,160,000 388,22,000
3. Computation of Net Profit under section 198 of the Companies Act,
1956 for the purpose of remuneration payable to Whole Time Directors
has not been enumerated as no commission is payable to them.
4. Term Loan installments due within next one year is amounting to Rs
2979.91 Lacs. (Rs 3812.99 lacs).
5. Pursuant to the adoption of Accounting Standards as prescribed by
Companies (Accounting Standards) Rules,2006 issued by Ministry of
Corporate Affairs vide notificaton no.G.S.R.739 (E) dated December 7,
2006 and as required by Accounting Standard 11 Ã
a) Loss of Rs 4649.40 lacs (previous year Rs 6237.83 lacs) on
translation/settlement of foreign currency monetary items including
borrowings have been shown as exceptional items in the profit and loss
account.
b) Gain/(Loss) on account of hedging against export exposures amounting
to Rs 50.90 lacs, (previous year loss of Rs 1400.55 lacs) have been
accounted under the head other income/(other expenses) in the profit &
loss account.
6. A sum of Rs.12,394,101 (previous year Rs.14,972,861) being the
difference between domestic vs. imported material prices prevailing at
the end of the period ended 31st March 2010 on account of advance
licences excess utilized for which exports are yet to be made, has been
adjusted in the cost of raw material.
Export Incentive under Duty Entitlement Pass Book Scheme (DEPB) amount
to Rs. 152,977,025 (Previous year Rs. 150,031,046) has been credited
in the account of raw material.
7. Advance receivable in cash or in kind includes Rs. 28,254,173
(Previous Year Rs. 28,254,173 ) being the amount of custom duty
deposited against import of capital goods assessed under provisional
assessments in earlier year.
8. (a) 600 shares of Hindustan Thermal Power Generation Ltd.
(Formerly Hindustan Polyester Ltd.) of which the Company is beneficial
owner are held by certain individuals in fiduciary capacity.
(b) 6 shares of Jindal Packaging Films Ltd.(Under amalgamation with
Hindustan Powergen Ltd) of which the Company is beneficial owner are
held by certain individuals in fiduciary capacity.
9. Certain old balances of sundry debtors and sundry creditors are
subject to reconciliation and confirmation.
10. Under the Packaging Scheme of Incentive approved by the Government
of Maharashtra, the Company is entitled to industrial promotion subsidy
to the extent of 100% of the fixed capital investment or the extent of
taxes paid to the State Government within a period of 7 years,
whichever is lower. During the year, the Company is entitled for an
amount of Rs. 273,237,356, (previous year Rs. 89,168,202), under that
scheme and the same has been shown as income, under the head of other
income.
11. In the opinion of the Board and to the best of their knowledge and
belief, the realizable value of current assets, loans and advances in
the ordinary course of business would not be less than the amount at
which they are stated in the Balance Sheet.
12. Stores and spares consumed and salaries and wages incurred during
the year for repair and maintenance of plant & machinery and sheds &
building, have been charged to the former accounts wherever separation
is not ascertainable.
13. The Company has not received from suppliers regarding their status
under the Micro, Small and Medium Enterprises Development Act, 2006 and
hence disclosures, if any, relating to amounts unpaid as at the year
end together with interest paid/payable as required under the said Act
have not been given.
14. The Export obligation undertaken by the company for import of
capital equipments under EPCG/100% EOU scheme of the Central government
at the concessional or zero rate of custom duty are in the opinion of
the management expected to be fulfilled within their respective due
dates/extended due dates.
15. a) As per Accounting Standard 28 issued by ICAI, impairment loss
on Assets at Khanvel (Being one of the unit Manufacturing
PET Films of the company) was provided by the company during the year
ended 31st March 2003. Now in the opinion of the management, there is
no further loss on account of impairment of assets, lying at Khanvel in
which operations have been suspended.
b) Operations in respect of Companys units at Gulaothi were lying
suspended. However carrying cost of these units are reflected at
historical cost. The management is of view that there is no loss on
account of impairment of assets as required by AS 28 issued by ICAI as
the realisable value of these assets are higher than the carrying cost.
16. Previous years figures have been regrouped and/or rearranged
wherever required.
17. Additional information pursuant to the provision of the part II of
Schedule II of the Companies Act,1956 (as certified & classified by the
Management)
18. Segment Reporting Policies
i) Primary Segment
Business Segment : The Companys operating business are organised and
managed separately according to the nature of products.
ii) Secondary Segment
Geographical Segment : The analysis of geographical segment is based on
the geographical location of the customers.
iii) Corporate income and expenses are considered as part of
unallocable income and expense, which are not identifiable to any
business segment.
19 A) As required by Accounting Standard -18 "Related party disclosure"
issued by the Institute of Chartered Accountants of India are as
follows:-
List of Related parties
a. Companies/Individuals/Associates
1 Sh. B.C.Jindal
2 Sh. S.S.Jindal
3 Smt. Subhadra Jindal
4 Miss Akriti Jindal
5 Agile Properties Ltd.
6 Bajaloni Group Ltd.
7 Conslidated Finvest & Holdings Ltd.
8 Consolidated Buildwell Ltd.
9 Consolidated Photo & Finvest Ltd.
10 Consolidated Realtors Ltd.
11 Jesmine Investment Ltd.
12 Jindal Imaging ltd
13 Jindal India Ltd
14 Jindal Meadows Ltd.
15 Jindal Photo Investments Ltd
16 Jindal Photo Ltd
17 Jindal Realtors Ltd
18 Jindal India Thermal Power Ltd.
19 Jumbo Finance Ltd
20 Jupax Barter Pvt..Ltd
21 Pasion Tea Private Ltd.
22 Rishi Trading Co. Ltd
23 Soyuz Trading Co. Ltd
24 Vigile Farms Ltd.
25 Jindal India Finvest & Holdings Limited
26 Mandakini Coalmines Limited
27 Jindal India Powertech Limited
28 Jindal India Powerventures Limited
29 Jindal Buildmart Limited
30 Jindal Realmart Private Limited
31 Hindustan Powergen Limited
32 Indian Software Consultancy Limited
b. Subsidiary Companies
1 Hindustan Thermal Power Generation Limited (Formerly Hindustan
Polysters Ltd.)
2 Jindal Packagings Limited ( up to 23.09.2009)
3 Jindal France SAS
4 Rexor SAS
5 Jindal Solar Rajasthan Limited (w.e.f. 10.02.2010)
6 Jindal Solar Powertech Limited (w.e.f. 11.02.2010)
c. Key Management personnels
1 Sh. Sameer Banerjee
2 Sh. Sumant Singhal (up to 20.01.2010)
3 Sh. Sanjay Mittal (up to 31.07.2009)
4 Sh. R.B. Pal (w.e.f. 17.12.2009)
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D-Street Bleeds For 2nd Day! Sensex Slumps 678 Pts; Nifty Cracks 25,800; Why Stock Market Is Falling Today? -
Stocks To Buy Today, Dec 9: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Tuesday -
Stocks To Buy Today, Dec 8: Top 4 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Monday -
Stock Market Alert! Major Pre-Open Session Change From Dec 8: Full Timings, Rules & All You Need To Know -
Bank Nifty Surges: RBI’s 25 bps Rate Cut Triggers Strong Upside in Major Banking Stocks -
Closing Bell: Sensex Ends 158 pts Higher, Nifty Climbs Above 26,000; Hero MotoCorp, HAL Up 2% Each -
Stocks To Buy Today, Dec 4: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Thursday
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