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நிறுவன பெயரின் முதல் சில எழுத்துக்களை நிரப்பி 'கோ' பட்டனை கிளிக் செய்யவும்

Jai Balaji Industries Ltd. இன் கணக்கு குறிப்புகள்

Mar 31, 2023

(i) Terms/rights attached to equity shares

The Company has only one class of ordinary shares (equity shares) having at par value of ?10/- each. Each shareholder of ordinary shares (equity shareholders) is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to approval of the share holders in the ensuing Annual General Meeting except in the case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distributions of all preferential amounts, in the proportions to their share holdings.

Nature and purpose of reserves:

(a)

Capital Reserve:

Capital Reserve represents amount received from West Bengal Industrial Development Corporation as a Capital Subsidy,amount forfeited agianst equity warrant application money and term loan amount written back .

(b)

Amalgamation Reserve:

Amalgmation Reserve represents amount arisen on Amalgamation of erstwhile Shri Ramrupai Balaji Steels Limited.

(c)

Securities Premium Account:

Securities Premium represents the amount received in excess of face value of securities and forfeited of shares.

(d)

General Reserve:

The Company has transferred a portion of the net profit of the company before declaring dividend to general reserve pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013.

(e)

Retained Earnings:

Retained earnings generally represents the undistributed profit/amount of accumulated earnings of the Company.

(f)

Remeasurements of

Net Defined Benefit Plans:

Differences between the interest income on plan assets and the return actually received and any changes in the liabilities over the year due to changes in actuarial assumptions or experience adjustments within the plans are recognised in ''Other comprehensive income'' and subsequently not reclassified to the Statement of Profit and Loss.

(g)

Equity Instruments through

Other Comprehensive Income:

The fair value change of the equity instrument measured at fair value through other comprehensive income is recognised in Equity instruments through Other Comprehensive Income.

(h)

Money Received against

Share Warrant:

The Company had issued and alloted 5,00,00,000 warrants on Preferential allotment basis to companies falling under promoter group and others carrying a right to convert each warrant into an Equity Share of Rs 10/- each within a period of 18 months from the date of allotment i.e. 27th May, 2022. The warrant holders had paid ?52/- per warrant amounting to ?20,150.00 lacs as application money against the above warrant.

Further The Company had issued and allotted 2,20,00,000 warrants on Preferential allotment basis to companies falling under Promoter group carrying a right to convert each warrant into a Equity Share of Rs 10/- each within a period of 18 months from the date of allotment i.e. 20th January, 2023. The warrant holders had paid 25% of the total consideration of ? 45/- per warrant amounting to ? 2,475.00 lacs as application money against the above warrants.

Out of total alloted 5,00,00,000 warrants the company had converted 3,50,00,000 warrants into Equity Shares during the year ended 31st March, 2023.

1. Rupee Loan from Assets Reconstruction Company

a). Rupee Loan from ARC are secured by 1st charge over the entire fixed assets(both present and future) and 1st charge over the entire current assets (both present and future) of the Company''s units at Ranigunge and Durgapur in the state of West Bengal and Durg in the state of Chattisgarh.

The above loans are further secured as follows.

i) Personal Guarantees of Promoter Directors of the Company.

ii) Pledge of equity shares of the Company held by the promoters.

2. Unsecured Loan

Unsecured Loan from bodies corporate has been received from a promoter group company and unsecured loan from others are interest bearing which is repayble on demand.

Additional Disclosure

Default in Repayment of Loans, its assignment/ settlement terms and conditions and its Accounting Treatment :

1 The entire exposure of Axix Bank,UCO Bank (lead bank), Allahabad Bank and Union Bank of India was already assigned to Edelweiss Asset Reconstruction Company Limited. For repayment of said debts, company entered into a reconstructuring agrement with Edelweiss Asset Reconstruction Company Limited (Edelweiss ARC) and agreed for the repayment of loan by September 2025. The company has made regular payment to Edelweiss Asset Reconstruction Company Limited as per the restructured repayment schedule. However, the differential amount of the pending restructured liability and books balance has been transferred to capital reserve during the year ended 31st March, 2023 according to the terms of settlement.

2 Bank of India have assigned their debts to Edelweiss Asset Reconstruction Company Limited. For repay ment of said debts, company entered into a restructuring agreement with Edelweiss Asset Reconstruction Company Limited (Edelweiss ARC). As per the restructuring terms company has made the payment on regular basis to Edelweiss Asset Reconstruction Company Limited. However, the differential amount of the pending restructured liability and books balance has been transferred to capital reserve during the year ended 31 st March, 2023 according to the terms of settlement.

3 United Bank of India, State Bank of India, West Bengal Infrastructure Development Finance Corporation Ltd, IDBI Bank, Indian Overseas Bank and Vijaya Bank (Bank of Baroda) have also assigned their entire exposure to the Omkara Assets Reconstruction Private Limited (Omkara ARC). On the approach of the company, Omkara ARC has restructured the dues of each bank seperate ly. As per the restructuring terms of each agreement, the company has made the payment without any delay or default. However, during the financial year company payoff the entire restructured dues pertaining to West Bengal Infrastructure Development Finance Corporation Ltd, IDBI Bank and Vijaya Bank (Bank of Baroda). The Omkara ARC has subsequently issue no dues certificate for the same. The balance books liabilities of these three banks are settled to the Capital Rserve according to the terms of settlement.

Further, the differential amount of the pending restructured liability and books balance pertaining to the restructuring of United Bank of India, State Bank of India and Indian Overseas Bank has been transferred to capital reserve during the year ended 31 st March, 2023, according to the terms of settlement. In compliance of the IND AS policy, the company has provided compulsory interest provision in the outstanding amount of Omkara ARC pertaining to dues of these three banks.

4 The Punjab National Bank has settled/restructured the combined dues of Punjab National Bank and erstwhile Oriental Bank Commerce under the One time Settlement scheme. During the year,the Company has paid the entire settlement amount to the bank.Accordingly the Punjab National Bank has already issued the No dues certificate for the same. After which, the company has settled the balance books liabilities of PNB and OBC to the Capital Reserve.

5 J.M. Financial Assets Reconstruction Company Limited have assigned their debts along with all its rights, title and interest in the financing documents, all agreements, deeds and documents related thereto and all primary and collateral and underlying security interest and / or pledges created to secure and / or gurantees issued in respect of the repayment of the loans for valuable consideration to Atirath Commercial Privated Limited. However, Company has approached settled and paid off the said debt with Atirath Commercial Private Limited and subsequently received no dues certificate from them. The remaining books liability of Atiirath Commercial Private Limited has settled to the Capital Reserve.

6 During the period under review, the company has paid the entire dues of the one-time settlement offer of Union Bank of India (Erstwhile Corporation Bank). The bank has also issued no dues certificate to the company for the same. The remaining books liability of Union Bank of India (Erstwhile Corporation Bank) has settled to the Capital Reserve.

35A Contingent liabilities

In the ordinary course of business, the Company faces claims and assertions by various parties. The Company assesses such claims and assertions and monitors the legal environment on an on-going basis with the assistance of external legal counsel, wherever necessary. The Company records a liability for any claims where a potential loss is probable and capable of being estimated and discloses such matters in its financial statements, if material. For potential losses that are considered possible, but not probable, the Company provides disclosure in the financial statements but does not record a liability in its accounts unless the loss becomes probable.

The following is a description of claims and assertions where a potential loss is possible, but not probable. The Company believes that none of the contingencies described below would have a material adverse effect on the Company''s financial condition, results of operations or cash flows.

^ in lacs)

Particulars

As at

As at

March 31, 2023

March 31, 2022

a)

Claims against the Company not acknowledged as debts i) Excise, Service Tax and GST Demands under dispute/appeal

24,525.19

21,298.30

ii) Custom Demand on imported Coal/Coke

362.32

1,182.26

iii) Sales Tax /VAT/Entry Tax matters under dispute/appeal

8121.57

8,143.78

iv) Income tax matters under dispute/appeal

5.70

6.85

v) Electricity duty demand

-

1214.13

vi) Settlement of loan with Assets Reconstruction Companies

169,290.05

--

b)

Custom Duty on Import of Equipment and spare parts under EPCG Scheme

16,669.00

6272.00

c)

Legal Case matters under dispute/appeal

493.98

489.08

35B. Capital and other commitments

Estimated amount of contracts remaining to be executed on Capital Account and not provided for

7,376.18

4,289.95

36 Due to unfavourable market conditions and other adverse industry scenario the company has made substantial losses for the past years. This has impacted the net worth of the company. However, the management is confident that the improvement in market scenario will help in improving the financial health of the company. The financial statement for the year have been prepared by the management of the Company on a going concern basis as the company is continuing its normal manufacturing during the current year and has not written off Deferred tax Assets amounting to ? 29,085.14 lacs provided upto 31st March, 2015.

37 Leases

The Company determines whether an arrangement contains a lease by assessing whether the fulfillment of a transaction is dependent on the use of a specific asset and whether the transaction conveys the right to use that asset to the Company in return for payment. Where this occurs, the arrangement is deemed to include a lease and is accounted for either as finance or operating lease.

Leases are classified as finance leases where the terms of the lease transfers substantially all the risks and rewards of ownership to the lessee, because of the lease period of land 90 or more years then the fair value computation for finance lease will have no material difference comparing to its carrying value, so that the company considered as finance lease.

The Company as lessee Finance Lease:

Finance Leases are capitalised at the commencement of lease, at the lower of the fair value of the property or the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in the statement of profit and loss over the period of the lease.

(? in lacs)

Particulars

Current year ended March 31, 2023

Previous year ended March 31, 2022

Payments recognised as a expenses

10.13

10.13

Future Minimum Lease payments - Not later than one year

10.13

10.13

- Later than one year and not more than five years

50.68

50.68

- Later than five years

604.49

614.63

38 During the year, the Company has not recognised any income under the scheme for the following subsidies / incentives receivable from the Government of West Bengal under West Bengal Incentive Scheme aggregating to ? Nil (? Nil): Pre Goods & Service Tax (GST), the company was enjoying certain benefits under Industrial Promotion Scheme of State Government Post GST, pending notifications by the State Government on prudent basis.

b) Fair value hierarchy

The table shown below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined below:

-Level 1: Level 1 hierarchy includes Financial Instruments measured using Quoted prices. This include listed equity instruments, mutual funds that have quoted price. The Fair Value of all equity instruments which are traded in stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

-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, contingent consideration and indemnification asset included in Level 3.

46 Financial Risk Management Objectives And Policies

The Company is exposed to liquidity risk, market risk, credit risk. The company''s senior management oversees the management of these risks. The Company''s senior management is supported by a financial risk committee that advises on financial risks and the appropriate financial risk governance framework for the Company. The financial risk committee provides assurance to the Company''s senior management that the Company''s financial risk activities are governed by appropriate policies and procedure and that financial risks are identified,measured and managed in accordance with the Company''s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each risk, which are summarised as below:

(A) Liquidity Risk

Liquidity risk is the risk that the company will face in meeting its obligations associated with its financial liabilities. The Company''s approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses. In doing this, management considers both normal and stressed conditions.

The Company maintained a cautions liquidity strategy, with a positive cash balance throughout the year ended 31st March, 2023 and 31st March, 2022. Cash flow from operating activities provides the funds to service the financial liabilities on a day-to-day basis.

The following table shows the maturity analysis of the Company''s financial assets and financial liabilities bases on contractually agreed undiscounted cash flows along with its carrying value as at the Balance Sheet date.

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises interest risk and currency risk and other price risk. Financial Instrument affected by market risk include loans and borrowings in foreign currency.

a) Interest rate risk

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. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long term debt obligations with floating interest rates. The Company is not carrying its borrowings primarily at variable rate.

b) Currency risk

The Company is subject to the risk that changes in foreign currency values impact the companys export revenue and imports of raw material and property, plant and equipment.

The following table demonstrate the sensivity to a reasonable possible change in USD, EURO and AUD exchange rates, with all other variables held constant. The impact on the Company''s profit/(loss) is due to changes in the fair value of monetary assets and liabilities.

Credit risk is the risk of financial loss arising from counter partyfailure to repay or service debt acording to the contractual terms or obligations. Credit risk encompasses both the direct risk of default and the risk of deterioration of credit worthiness as well as concentration risks.

The Company has a policy of dealing only with credit worthly counter parties and obtaiining sufficient collateral, where apropriate as a means of matigating the risk of financial loss from defaults. Financial instruments that are subject to credit risk and concentration thereof principally consist of trade receivables, loans, receivables, investments, cash and cash equivalents, derivatives and financial gurantees provided by the company. None of the financial instruments of the company result in material result in material concentration of credit risk.

The carrying value of financial assets represents the maximum credit risk. The maximum exposure to the credit risk was ? 38,116.10 lacs and ? 25,254.77 lacs as at March 31, 2023 and March 31, 2022 respectively, being the total carrying value of trade receivables, balances with bank, bank deposits, investments in debt securities and other financial assets. 47 Foreign Currency risk

a) Hedged Foreign Currency Exposures :

Derivative instruments used by the Company include forward exchange contracts. These financial instruments are utilised to hedge future transcations and cash flows. The Company does not hold or issue derivative financial instruments for trading purposes. All transcatons in derivative financial instruments are undertaken to manage risks arising from underlying business activities.

*The Hon''ble Supreme Court vide its Order dated 24th September, 2014 has cancelled number of coal blocks alloted to various companies.These include two coal blocks under development viz. Andal East in West Bengal and Rohne in Jharkhand allocated to the Company jointly with other parties The company has prudently brought down the value of investment in joint venture companies to ? 1 per share. However the company had submitted claims w.r.t the cancellation of coal blocks which are still pending.

50. Fair Valuation of Investments:

Ind AS 101 provides an option on transition date to consider fair value of the investment in subsidiaries or joint venture as on the date of transition as the deemed cost as cost for the purpose of Para 10 of Ind AS 27. Accordingly the Company has valued as a deemed cost.The company has prudently brought down the value of its investments in two of its joint ventures viz Andal East Coal Co Pvt Ltd and Rohne Coal Co Pvt Ltd as on 1st April, 2016 with a corresponding impact on Other Equity (Retained earnings) and also fair valued its investment of equity shares calcutta stock exchange as on 1st April 2016 to arrive at the book value with a corresponding impact on Other Equity (Retained earnings).

Explanation for variance more than 25%:

a. Mainly due to substantial increase in turnover during the year.

b. Mainly due to substantial reduction of borrowing amount on account of restructuring of loans with ARC/Banks.

c. Mainly due to substantial reduction of borrowing amount on account of restructuring of loans with ARC/Banks and increase in profit during the year

d. Mainly due to substantial fixed deposits increased at the year end.

*Net working capital is negative.

53 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 Ministry of Labour and Employment had released draft rules for the Code on Social Security, 2020 on November 13, 2020. The Company will assess the impact and its evaluation once the subject rules are notified. The Company will give appropriate impact in its financial statements in the period in which the Code becomes effective and the related rules to determine the financial impact are published.

54 Balances of some parties (including of Trade receivables and Trade payables) and loans and advances are subject to reconciliation/confirmations from the respective parties. The management does not expect any material differences affecting the financial statement for the year.

55 Disclosure of Transcations with struck off companies

The Company did not have any material transcations with companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956 during the financial year.

56 Corporate social responsibility (CSR)

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold,needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility(CSR) activities. The areas for CSR activities are eligible under rural development project. A CSR committee has been formed by the company as per the Act. The funds were primarily utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013.

57 Other disclosure requirements as notified by MCA pursuant to amended Schedule III:

(a) Details of Benami Property held: The company does not hold any Benami property, hence there were no proceeding initiated or pending against the company for holding any benami property under The Benami Transactions (Prohibitions) Act, 1988 and the Rules made thereunder, hence no disclosure is required to be given as such.

(b) Wilful defaulter: The company has not been declared as wilful defaulter as at the date of the Balance Sheet or on the date of approval of the Financial Statements, hence no disclosure is required as such.

(c ) Registration of Charges or Satifaction with Registrar of Companies (ROC): There were no charges against the company which are yet to be registered or satification yet to be registered with ROC beyond the Statutory period, hence no disclosures is required as such.

(d) Compliance with Number of Layers of Companies: The company, if applicable, has complied with the number of layers prescribed under clause 87 of Section 2 of the Companies Act, 2013 read with Companies (Restriction on Number of Layers) Rules, 2017, hence no disclosure is required as such.

(e) Details of Crypto Currency or Virtual Currency: The company has not traded r invested in Crpto Curency or Virtual Curraency during the Financial Year, hence no disclosure is required for the same.

(f) Disclosure in Relation to Undisclosed Income : During the year the Company has not surrendered or disclosed any income in the tax assessments under the Income Tax Act 1961 (Such as, search or survey or any other relevants provisions of the Income Tax Act 1961 ). Accordingly, there are no transactions which are not recorded in the books of accounts

(g) Property Plant & Equipment : Title deeds of immovable properties in the case of freehold land, (for description refer note no 3) are held in the name of the Company. In case of leasehold land (refer note no 3A) where the company is the lessee, the lease agreements are duly executed in favour of the Company (being a lessee).

(h) Borrowing against current assets : Rupee Term Loans from ARCs are also secured against the Current Assets of the Company. However, since the Company has not been availing any working capital limits against the current assets, no seperate disclosures are required.

(i) Utilisation of borrowed funds : All the borrowed funds have been utilised for the purpose they are sanctioned for. There is no diversion in the utilisation of such funds. Thus no disclosures are required.

58 The company has restructured/settled its outstanding loans with Assets Reconstruction Companies (ARC) and Banks. The

difference between the outstanding amount and settlement amount of ? 1,93,510.90 lacs has been credited to the Capital

Reserve during the year.

59 Figures of previous years have been regrouped/rarranged/rectified wherever necessary.


Mar 31, 2018

1 Corporate Information

Jai Balaji Industries Limited (JBIL) is engaged in the manufacturing of Iron and Steel products including Sponge Iron, Pig Iron, Ductile Iron Pipe, Ferro Chrome, Billet, TMT, Coke and Sinter with captive power plant. Jai Balaji Industries Limited has its registered office in Kolkata with manufacturing facilities located in Durgapur and Ranigunj in West Bengal and Durg in Chhattisgarh.

Jai Balaji Industries Limited(JBIL) is a Public Limited Company with its shares listed on Bombay Stock Exchange(BSE), National Stock Exchange(NSE) and Calcutta Stock Exchange(CSE).

Note:

In determining the allowances for doubtful trade receivables, the Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the receivables that are due and rates used in the provision matrix. There has been no significant change in the credit quality of receivables past due for more than 180 days.

(i) Terms/rights attached to equity shares

The Company has only one class of ordinary shares (equity shares) having at par value of Rs. 10/- each. Each shareholder of ordinary shares (equity shareholders) is entitled to one vote per share .The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing annual general meeting except in the case of interim dividend . In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distributions of all preferential amounts , in the proportions to their share holdings.

(ii) Lock-in-of Shares

The Equity Shares allotted to companies falling under the promoter group and others pursuant to conversion of warrants issued on preferential basis are under lock-in as follows:

Note:

1) The Company has issued 87,39,685 Zero Coupon Unsecured Unlisted Non Convertible Debentures at a price of Rs. 100 each.The Debenture shall be redeemable at par within three months from the expiry of twelve years from the date of allotment i.e 14th November, 2015.

2) Borrowings are initially recognized at fair value, net of transcation costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds ( net of transaction costs ) and the redemption amount is recognised in the Statement of Profit and Loss over the period of the borrowings using the effective interest method.

Note:

1. Rupee Loan from Banks and Financial Institution(except to the extent stated in point no 2 below)

a). Rupee Term Loan from banks,financial institution and ARC are secured by 1st charge over the entire fixed assets (both present and future) and 2nd charge over the entire current assets(both present and future) of the Company’s units at Ranigunge and Durgapur in the state of West Bengal and Durg in the state of Chattisgarh.

The above loans are further secured as follows.

i) Personal Guarantees of Promoter Directors of the Company.

ii) Pledge of equity shares of the Company held by the promoters.

b) Due to unfavourable market condition and other adverse industry scenario particularly on the steel sector, the company has incurred losses at EBIDTA level. This has a deep impact on erosion of net worth of the company. Owing to the loss management, company has somehow continued its operation to reduce the further losses at the EBIDTA level and maintain the assets at running condition.Therefore, the company was unable to pay its scheduled interest/installment and other financial dues which lead to classify its all loan account in bank/ financial institution as Non-Performing Assets. All the lenders have stopped charging interest on debts, since the dues from the Company have been categorized as Non-Performing Asset.

c) Rupee loan from bank and financial institution has been turned into NPA. Continuing on the routine compliance, the lenders are moving on the recovery measure and already serve the call up notice for their exposure. Therefore instead of structured repayment schedule, the entire exposure of that banks/financial institution is fallen due on immediate demand basis. Accordingly, all the Term Loans and Cash Credits from Banks have been classified as Loans Repayable on Demand in the Current Year.

2. On the basis of the majority in collective /individual mandate from the lenders on Exit from CDR scheme. The CDR EG minutezed that the Company stands exited from the CDR mechanism on account of failure of CDR approved package, in their meeting dated 31.10.2017.

3. After Axis Bank, UCO Bank (lead bank), Allahabad Bank and Union Bank of India intimated the company that have been assigned their entire exposure along with all its rights,tittle and interest in the financing documents, all agreements, deeds and documents related thereto and all primary and collateral and underlying security interests and/or pledges created to secure and /or guarantees issued in respect of the repayment of the loans for valuable consideration to the Edelweiss Assets Reconstruction Company Ltd. (EARC).

4. Unsecured Loan from bodies corporate has been received from a promoter group company as per the CDR scheme.

5. Cash Credit facilities from banks are secured by pari-passu 1st charge over the entire current assets (both present and future) and 2nd charge over the entire fixed assets (both present and future) of the Company’s units at Ranigunj and Durgapur in the state of West Bengal and Durg in the state of Chattisgarh.

The above facilities are further secured as follows.

(i) Personal Guarantees of Promoter Directors of the Company.

(ii) Pledge of equity shares of the Company held by the promoters

6. Unsecured loan from others are interest bearing which is repayable within a credit period of 90 days.

Note:

In compliance with Ind AS-18 and SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, the reported revenue for the period upto 30th June, 2017 is inclusive of Excise Duty. Goods and Services Tax(GST) is made applicable w.e.f. 1st July, 2017 and as per Ind AS-18, revenue for the period thereafter is net of GST. Hence revenue from operations for the year ended 31st March, 2018 is not comparable with corresponding year ended 31st March, 2017.

2 During the year under review, UCO Bank, Allahabad Bank and Union Bank of India have assigned their credit exposure to the company to Edelweiss Asset Reconstruction Company Limited. However, in the absence of any agreement being entered into with them by the company the dues owed by the company to the aforesaid banks have been carried forward in the books of accounts as Long Term Debts in favour of the said ARC.

3 On the basis of the majority in collective/individual mandate from the lenders regarding Exit from CDR scheme. The CDR EG approved that the Company stands exited from the CDR mechanism on account of failure of CDR approved package, in their meeting dated 31.10.2017.

4 All the lenders have stopped charging interest on debts, since the dues from the Company have been categorized as NonPerforming Asset. The Company is in active discussion/negotiation with its lenders to restructure its debts at a sustainable level including waiver of unpaid interest. In view of the above, pending finalization of the any corrective action plan, the Company has stopped providing interest accrued and unpaid effective from 1st April 2016 in its book. The amount of such accrued and unpaid interest not provided for the year ended 31st March, 2018 stands at Rs.43,744.25 lacs (P.Y. - Rs.39,544.56 lacs). The accumulated interest not provided till 31st March, 2018 stands at Rs. 83,288.81 lacs. Accordingly the same has not been considered for compilation of results of the said year ended 31 st March, 2018. The Statutory Auditors have qualified their Audit Report in respect of this matter.

5 Due to unfavourable market conditions and other adverse industry scenario the company has incurred net loss during the year ended 31st March, 2018. This has impacted the net worth of the company. However, the management is confident that the improvement in market scenario will help in improving the financial health of the company. The financial statement for the year have been prepared by the management of the Company on a going concern basis as the company is continuing its normal manufacturing during the current year and has not written off Deferred tax Assets amounting to Rs.29,085.14 lacs provided upto 31st March, 2015.

6 Leases

The Company determines whether an arrangement contains a lease by assessing whether the fulfillment of a transcation is dependent on the use of a specific asset and whether the transaction conveys the right to use that asset to the Company in return for payment. Where this occurs, the arrangement is deemed to include a lease and is accounted for either as finance or operating lease.

Leases are classified as finance leases where the terms of the lease transfers substantially all the risks and rewards of ownership to the lessee.

The Company as lessee Finance Lease:

Finance Leases are capitallised at the commencement of lease, at the lower of the fair value of the property or the present value of the minimum lease payments. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in the Statement of Profit and Loss over the period of the lease.

7 During the year, the Company has accounted for the following subsidies / incentives receivable from the Government of West Bengal under West Bengal Incentive Scheme aggregating to Rs. 1,084.96 lacs (Rs. 2,079.90 lacs). Pre Goods & Service Tax (GST), the company was enjoying certain benefits under Industrial Promotion Scheme of State Government Post GST, pending notifications by the State Government on prudent basis the Company has not recognised any income under the scheme for the period October 01, 2017 to March 31, 2018.

8 Exceptional Item:

Exceptional items of Rs. 3,973.81 lacs for the year ended March 31, 2018:

i) Owing to invocation of pledge of shares held in one of the subsidiary company M/s Nilachal Iron and Power Limited by M/ s Omkara Asset Reconstruction Company Private Limited at a distress value of Rs. 850 lacs, the company has booked loss to the tune of Rs. 6,893.96 lacs and simultaneously wrote-back the residual loan liability of Rs. 2,890.15 lacs.

ii) The loan was taken from IFCI Limited, which they had assinged to Omkara Assets Reconstruction Company Private Limited

9 Employee Benefits

I. Disclosures for defined benefit plans based on actuarial reports

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to gratuity on terms not less favourable than The Provisions of Payment of Gratuity Act, 1972. The scheme is funded with an insurance company in the form of a qualifying insurance policy.

The disclosures required under Indian Accounting Standard 19 ‘Employee Benefits’ notified in the Companies (Accounting Standards) Rules 2006 are given below:

10. Trade payables includes amount due to Micro and Small Enterprises in terms of Micro, Small and Medium Enterprises Development Act, 2006(MSMED Act) as under:

11 Segment Information

(i) Business Segment : The Company’s business activity primarily falls within a single business segment i.e. Iron & Steel Business and hence there are no disclosures to be made under Ind AS-108, other than those already provided in the financial statements.

(ii) Geographical Segment : The Company’s business activity primarily operates in India and therefore the analysis of geographical segment is based on the areas in which customers of the Company are located.

12 Capital Management

The Company’s capital management is intended to create value for shareholders by facilitating the meeting of long- term and short-term goals of the Company.

The Company determines the amount of capital required on the basis of annual operating plans and long-term product and other strategic investment plans. The funding requirements are met through equity and other long-term/short -term borrowings. The Company’s policy is aimed at combination of short- term and long-term borrowings.

The Company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

13 Fair Value Measurements

a) Financial instruments by category

b) Fair value hierarchy

The table shown below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined below: ‘‘

- level 1: quoted and unquoted prices (unadjusted) in active markets for identical assets or liabilities.

- level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly(i.e, as prices) or indirectly (i.e. derived from prices)

- level 3: inputs for the asset or liability that are not based on observable market data(unobservable inputs)

14 Other Comprehensive Income:

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

Out of above amount, paid to other auditor amounts to ‘ 0.50 lacs (‘ 0.75 lacs)

15 (a) Interest in Joint Venture:

The Company has interest in following Joint Venture Companies which are in the process of setting up coal mining facilities at respective Coal blocks which they have been allotted.

*The Hon’ble Supreme Court vide its Order dated 24 th September, 2014 has cancelled number of coal blocks alloted to various companies.These include two coal blocks under development viz. Andal East in West Bengal and Rohne in Jharkhand allocated to the Company jointly with other parties. The company has prudently brought down the value of investment in joint venture companies to nominal value of Rs. 1 per share. However the company had submitted claims w.r.t the cancellation of coal blocks which are still pending.

(b) Subsidiary :

Nilachal Iron & Power Limited(NIPL) ceases to be a subsiduiary of the Company subsequent to invocation of pledge of 100% Equity Shares (except 600 equity shares held by the Companyt as beneficiary shareholder) of NIPL by a lender of the Company.

16 Fair Valuation of Investments:

Ind AS 101 provides an option on transition date to consider fair value of the investment in subsidiaries or joint venture as on the date of transition as the deemed cost as cost for the purpose of Para 10 of Ind AS 27. Accordingly the Company has valued as a deemed cost. The company has prudently brought down the value of its investments in two of its joint ventures viz Andal East Coal Co Pvt. Ltd. and Rohne Coal Co Pvt. Ltd. as on 1st April, 2016 with a corresponding impact on Other Equity (Retained earnings) and also fair valued its investment of equity shares of Calcutta Stock Exchange as on 1st April 2016 to arrive at the book value with a corresponding impact on Other Equity (retained earnings). However, provision for diminution in value is made to reconize a decline other than temporary in the value of the investments.

17. Previous GAAP figures have been reclassified/regrouped wherever necessary to confirm with financial statements prepared under Ind AS.

18. The financial statements are approved by the audit committee at its meeting held on 30th June, 2018 and by the Board of Directors on the same date.


Mar 31, 2016

A Liability has been classified as current when (a) it is expected to be settled in the Company''s normal operating cycle; or (b) it is held primarily for the purpose of being traded; or (c) it is due to be settled within twelve months after the reporting date; or (d) the Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

An operating cycle is the time between the acquisition of assets for processing and their realization in cash or cash equivalents.

(b) Terms/rights attached to equity shares

The Company has only one class of ordinary shares (equity shares) having at par value of ''10/- each. Each shareholder of ordinary shares (equity shareholders) is entitled to one vote per share .The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing annual general meeting except in the case of interim dividend . In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distributions of all preferential amounts , in the proportions to their share holdings.

(c) Lock-in-of Shares

The 40,00,000 Equity shares allotted on 30th March, 2016. pursuant to part conversion of warrants issued to companies falling under the promoter group are under lock-in till 29th June, 2019.

As per records of the Company, including its register of shareholders/members, the above share holdings represents legal ownership of shares.

(e) Money received against share warrants

During the year the Company has issued & allotted 2,26,05,000 warrants on Preferential allotment basis to companies falling under promoter group & others carrying a right to convert each warrant into an Equity Share of Rs.10 each within a period of 18 months from the date of allotment i.e 22nd March, 2016. The warrant holders have paid 25% of the total consideration i.e Rs.2.50 per warrant amounting to ''565.13 lacs as application money against the above warrants. Out of total 2,26,05,000 warrants, the Company has converted 40,00,000 warrants on 30th March, 2016 into Equity Shares by way of allotment of equivalent number of Equity Shares of Rs.10 each on receipt of balance 75% of the consideration i.e Rs.7.50 per warrant in respect of 40,00,000 warrants amounting to Rs.300 lacs.

1. In respect of an electricity supply matter where the Electricity Supplier has demanded enhanced charges, the matter was challenged by the Company at the Appellate Tribunal for Electricity ("the tribunal"). The Tribunal vide its order dated May 10, 2010 dismissed the appeal of the Supplier and directed to implement the tariff as determined by the Central Electricity Regulatory Commission vide its Order dated August 6, 2009. The Supplier has preferred an appeal with Hon''ble Supreme Court, pending finalization of the outcome of the matter, the liabilities for the electricity charges are accounted for based on provisional bills provided by the Supplier.

2. During the year, the Company has issued 87,39,685 Zero Coupon Unsecured Unlisted Non Convertible Debentures at a price of ''100 each. The Debentures shall be redeemable at par within three months from the expiry of twelve years from the date of allotment i.e. 14th November, 2015

3. The Company had applied for restructuring of its debts, under the Corporate Debt Restructuring (CDR) mechanism. The CDR Empowered Group approved the restructuring on 24th August, 2012 and the CDR Cell issued the Letter of Approval (LOA) on 20th September, 2012. The Master Restructuring Agreement (MRA) incorporating the terms of the LOA was signed with the lenders on 28th September, 2012 supplementary MRA was executed on 18.01.2013. The Company has also created security as per the Master Restructuring Agreement.

4. The Company has been incurring losses due to unfavorable market conditions and other adverse industry scenario from past few years. The accumulated losses of the Company as at 31st March, 2016 stands at Rs.163,222.21 lacs. The Company has already made reference with the Board for Industrial & Financial Reconstruction (BIFR) in terms of the provisions of Section 15(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) and the said reference has also been registered with BIFR.The management is in the process of restructuring the operations including rationalizing the costs. The management believes that these measures may result in sustainable cash flows and accordingly, the company continues to prepare its accounts on a ''''Going Concern'''' basis and has not written off Deferred tax Assets amounting to Rs.29,085.14 lacs provided upto 31st March, 2015.

5. (a) Interest in Joint Venture

The Company has interest in following Joint Venture Companies which are in the process of setting up coal mining facilities at respective Coal blocks which they have been allotted.

*Apart from the above the Company has interest in one more Joint Venture Entity, namely, M/s Andal East Coal Company Pvt Ltd, in which the Company is holding 32.79% equity shares. The same has been reported under note no. 11 (Investment in Joint Venture Companies). However the Company believes that it is inappropriate to follow the principle of proportionate consolidation of assets and liabilities to the extent of Company''s Interest in the said Joint Venture Company pursuant to Accounting Standard 27.

(b) The Hon''ble Supreme Court vide its Order dated 24th September, 2014 has cancelled number of coal blocks allotted to various companies. These include two coal blocks under development viz. Andal East in West Bengal and Rohne in Jharkhand allocated to the Company jointly with other parties and one operational coal block namely Ardhagram coal block in West Bengal. Pending finalization of the compensation receivable for the cancelled mines, no adjustments in the book value of Investments made in mining assets has been made.

6.. Figures in brackets represent previous financial year''s figures, which have been rearranged / regrouped wherever necessary to conform to this year''s classification.


Mar 31, 2015

1 General Information

Jai Balaji Industries Limited (the Company) is a public limited Company domiciled in India and is listed on the Bombay Stock Exchange[BSE], National Stock Exchange[NSE] and the Calcutta Stock Exchange[CSE]. The Company is engaged in the manufacture and sale of steel and allied products.

(b) Terms/rights attached to equity shares

The Company has only one class of ordinary shares (equity shares) having at par value of Rs. 10/- each. Each shareholder of ordinary shares (equity shareholders) is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing annual general meeting except in the case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distributions of all preferential amounts, in the proportions to their share holdings.

(c) Lock-in- of Shares

The Equity shares are alloted pursuant to part conversion of warrants issued to promoter group companies and are under lock-in for a period of one year from the date of allotment (29th May, 2014).

1) Rupee Loan from banks and Financial Institution (except to the extent stated in point no 2 below)

a) Rupee Term Loan from banks and financial institution are secured by pari- passu 1st charge over the entire fixed assets (both present and future) and 2nd charge over the entire current assets (both present and future) of the Company's units at Ranigunge and Durgapur in the state of West Bengal and Durg in the state of Chattisgarh.

The above loan are further secured as follows.

(i) Personal Guarantees of Promoter Directors of the Company.

(ii) Pledge of equity shares of the Company held by the promoters

b) Rupee Term Loan from banks and financial institution carry interest as follows:

(i) term loan and working capital term loan aggregating Rs. 149168.22 lacs at base rate of individual lenders plus spread, where spread is computed as difference between 11.75% p.a. and base rate of the individual lenders as on 16th June, 2012.

(ii) funded interest term loan aggregating Rs. 18713.27 lacs at base rate of lead banker (UCO Bank).

(iii) Viability Gap Term Loan(VGTL) aggregating to Rs. 47318.06 lacs at 30bps over base rate of the leader bank.

2) Rupee Term Loan from a Financial Institution aggregating Rs. 2171.59 lacs carry interest in the range of 14.50% - 15% p.a. and is for repayment.The loan is secured personal gurantees of certain promoter directors and 100% shares of its subsidiary company.

3) Unsecured loan from bodies corporate has been received from a promoter group company as per the CDR scheme.

4) Interest free loan has been received from promoter group companies as per the term of sanction of corporate loan by the consortium after the CDR Scheme.

Cash Credit facilities from banks are secured by pari- passu 1st charge over the entire current assets (both present and future) and 2nd charge over the entire fixed assets (both present and future) of the Company's units at Ranigunge and Durgapur in the state of West Bengal and Durg in the state of Chattisgarh.

The above facilities are further secured as follows.

(i) Personal Guarantees of Promoter Directors of the Company.

(ii) Pledge of equity shares of the Company held by the promoters

5. Contingent liabilities not provided for: (Rs. in lacs)

As at As at March 31, 2015 March 31, 2014

a) Claims against the Company not acknowledged as debts

i) Excise and Service Tax Demands under dispute/appeal 13,833.11 11,320.16

ii) Sales Tax/VAT matters under dispute/appeal 2,129.49 13,930.47

iii) Income Tax matters under dispute/appeal 6.85 6.85

b) Letters of Credit, Bills discounted and Bank Guarantees outstanding 19,843.00 23,177.35

c) Custom Duty on Import of Equipment and spare parts 3,929.72 4,380.00 under EPCG Scheme

d) Guarantees and Counter guarantees given by the Company for 5,045.00 5,045.00 loans obtained by Subsidiary/other companies

e) Guarantees given for Joint Venture Companies 1,412.46 1,412.46

6. Estimated amount of contracts remaining to be executed on 1,245.05 1,245.05 Capital Account and not provided for

[Net of Advances Rs. 5,705.73 lacs (Rs. 5,705.73 lacs)]

Proportionate amount of pending capital commitments on account of Joint Venture Companies is Rs. Nil excluding one Joint Venture Company [(Rs.0.64 lacs (March 31, 2014)] as at March 31, 2015.

7 In respect of an electricity supply matter where the Electricity Supplier has demanded enhanced charges, the matter was challenged by the Company at the Appellate Tribunal for Electricity ("the tribunal"). The Tribunal vide its order dated May 10, 2010 dismissed the appeal of the Supplier and directed to implement the tariff as determined by the Central Electricity Regulatory Commission vide its Order dated August 6, 2009. The Supplier has preferred an appeal with Hon'ble Supreme Court, pending finalisation of the outcome of the matter, the liabilities for the electricity charges are accounted for based on provisional bills provided by the Supplier.

8 Subsequently, on 4th July, 2013 the company alloted 10,000,000 convertible warrants as per SEBI(Issue of Capital and Disclosure Requirements) Regulations, 2009 to two promoter group companies @ Rs.50 per warrant each convertible into one equity share of the company of 10 each at a price of Rs.50/- each(including premium of Rs.40/-). Out of the said 10,000,000 warrants, 3,495,000 warrants were converted into equity shares on 5th August, 2013 and balance 6,505,000 warrants were converted into equity shares on 29th May, 2014.

9 The Company had applied for restructuring of its debts, under the Corporate Debt Restructuring (CDR) mechanism. The CDR Empowered Group approved the restructuring on 24th August, 2012 and the CDR Cell issued the Letter of Approval (LOA) on 20th September,2012. The Master Restructuring Agreement (MRA) incorporating the terms of the LOA was signed with the lenders on 28th September,2012 supplementary MRA was executed on 18.01.2013. The Company has also created security as per the Master Restructuring Agreement.

10. The accumulated losses of the Company as at the end of financial year 2014-15 are in exces of the entire net worth of the Company as on that date. However in view of the ongoing restructuring by the secured lenders and other creative action plans being envisaged by the management, the management is hopeful of an early recovery. As such the accounts for the year have been prepared on a going concern basis.

11 Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to gratuity on terms not less favourable than The Provisions of Payment of Gratuity Act, 1972. The scheme is funded with an insurance company in the form of a qualifying insurance policy.

Note:

i) The Company expects to contribute Rs. 459.16 lacs (Rs. 350.87 lacs) to Gratuity Fund in 2015-16.

ii) The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. The above information is certified by the Actuary.

iii) The management has relied on the overall actuarial valuation conducted by the actuary.

*Apart from the above the Company has interest in one more Joint Venture Entity, namely, M/s Andal East Coal Company Pvt Ltd, in which the Company is holding 32.79% equity shares. The same has been reported under note no. 11(Investment in Joint Venture Companies). However the Company believes that it is inappropriate to follow the principle of proportionate consolidation of assets and liabilities to the extent of Company's Interest in the said Joint Venture Company pursuant to Accounting Standard 27.

(b) Pursuant to the Order the Hon'ble Supreme Court of India dated 24th September, 2014 regarding cancellation of number of coal blocks allotted to various entities which includes two coal blocks under development allotted to the company jointly with others by the Ministry of Coal, Government of India. Subsequently the Government of India issued second ordinance on 26th December, 2014 for implementing the order of the Hon'ble Supreme Court and fixation of compensation etc. These mines will be allotted to other bidders in the e-auction by the Ministry of Coal, Government of India. Subject to the above, no adjustment have been made in the value of the investments in and Loans & Advances to the Joint Ventures and Associates for the above mentioned mining assets as the value of the compensation to be received can not be determined at this stage. The losses/gains, if any on account of it would be recognised as and when determined.

12. Figures in brackets represent previous financial year's figures, which have been rearranged / regrouped wherever necessary to conform to this year's classification.


Mar 31, 2014

General Information

Jai Balaji Industries Limited (the Company) is a public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on three stock exchanges in India (Bombay Stock Exchange, National Stock Exchange and Calcutta Stock Exchange). The Company is engaged in the manufacture and sale of steel and allied products.

Terms/rights attached to equity shares

The Company has only one class of ordinary shares (equity shares) having at par value of Rs. 10/- each. Each shareholder of ordinary shares (equity shareholders) is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to approval of the share holders in the ensuing annual general meeting except in the case of interim dividend . In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distributions of all preferential amounts, in the proportions to their share holdings.

Lock - in of shares

The Equity shares are allotted pursuant to part conversion of warrants issued to promoter group companies and are under lock-in for a period of one year from the date of allotment (5th August, 2013).

Money received against share warrants:

On 4th July,2013 the company alloted 10,000,000 convertible warrants at a price of Rs. 50/- per warrant,which was a price greater than the price determined as per clause 76(1) of Chapter VII of SEBI(ICDR) Regulations,2009 to two Promoter group companies ,viz M/s Enfield Suppliers Ltd and M/s Hari Management Limited on a preferential basis on such terms and conditions as contained in Special Resolution passed by the company at its Annual General Meeting held on 18th December, 2012.Each warrant was convertible into one equity share of Rs. 10/- each within 18 months from the date of such issue at the option of the Allottees.

On 5th August,2013 the said warrants were partly converted into 3,495,000 equity shares of the Company, the balance 6,505,000 warrants shall be converted in due course subject to application for the same being received from the allotee.

Long Term Borrowings

1) Rupee Loan from banks and Financial Institution (except to the extent stated in point no 2 below)

a) Rupee Term Loan from banks and financial institution are secured by pari- passu 1st charge over the entire fixed assets (both present and future) and 2nd charge over the entire current assets ( both present and future) of the Company''s units at Ranigunge and Durgapur in the state of West Bengal and Durg in the state of Chattisgarh. The above loan are further secured as follows.

(i) Personal Guarantees of Promoter Directors of the Company.

(ii) Corporate Guarantee of M/s Shri Marutaye Balaji Steels Limited, a promoter group company.

(iii) Pledge of 100% of the promoters share of M/s. Shri Marutaye Balaji Steels Limited.

(iv) Pledge of equity shares of the Company held by the promoters.

b) Rupee Term Loan from banks and financial institution carry interest as follows:

(i) term loan and working capital term loan aggregating Rs. 160704.33 lacs at base rate of individual lenders plus spread, where spread is computed as difference between 11.75% p.a. and base rate of the individual lenders as on 16th June 2012.

(ii) funded interest term loan aggregating Rs. 20022.86 lacs at base rate of lead banker (UCO Bank).

2) Rupee Term Loan from a Financial Institution aggregating Rs. 3921.58 lacs carry interest in the range of 14.50% - 15% p.a. and is repayable in 4 equal quarterly installments starting from April, 2014. The loan is secured by Bank Guarantee , pledge of certain promoter''s shareholdings in the Company and personal guarantees of certain promoter directors.

3) Rupee Term Loan from others carry interest in the range of 13.65% - 14% p.a. and is repayable in 34 monthly installments starting from August 2011. The loan is secured by exclusive charge over the assets acquired under respective loan agreements and personal guarantee of certain promoter directors of the Company.

4) Deferred Payment Liabilities carry interest rate of 9.40% to 10.43% and are repayable in 36 / 42 equal monthly installments from the date of disbursement of the loan amounts. These loans are secured by hypothecation of respective assets acquired there from.

5) Sales tax loan from Government of Chattisgarh is interest free and is repayable in 12 yearly installments starting from 31st March, 2002

6) Interest free loan has been received from a promoter group company as per the CDR scheme.

Short Term Borrowings

Cash Credit facilities from banks are secured by pari- passu 1st charge over the entire current assets (both present and future) and 2nd charge over the entire fixed assets (both present and future) of the Company''s units at Ranigunge and Durgapur in the state of West Bengal and Durg in the state of Chattisgarh.

The above facilities are further secured as follows.

(i) Personal Guarantees of Promoter Directors of the Company.

(ii) Corporate Guarantee of M/s Shri Marutaye Balaji Steels Limited, a promoter group company.

(iii) Pledge of 100% of the promoters share of M/s. Shri Marutaye Balaji Steels Limited.

(iv) Pledge of equity shares of the Company held by the promoters.

Contingent liabilities not provided for: (Rs. in lacs)

As at As at March 31, 2014 March 31, 2013

a) Claims against the Company not acknowledged as debts

i) Excise and Service Tax Demands 11,320.16 5,880.10 under dispute/appeal

ii) Sales Tax/VAT matters under 13,930.47 6,736.99 dispute/appeal

iii) Income Tax matters under 6.85 - dispute/appeal

b) Letters of Credit, Bills discounted 23,177.35 11,128.48 and Bank Guarantees outstanding

c) Custom Duty on Import of Equipment 4,380.00 2,468.83 and spare parts under EPCG Scheme

d) Guarantees and Counter guarantees given 5,045.00 7,180.00 by the Company for loans obtained by Subsidiary/other companies

e) Guarantee given for Joint Venture Companies 1,412.46 1,412.46

Estimated amount of contracts remaining to 1,245.05 1,545.89 be executed on Capital Account and not provided for

[Net of Advances Rs. 5,705.73 lacs (Rs. 5,801.19 lacs)]

Proportionate amount of pending capital commitments on account of Joint Venture Companies is Rs. 0.64 lacs excluding one Joint Venture Company [(Rs. 9.98 lacs (March 31, 2013)] as at March 31, 2014.

In respect of an electricity supply matter where the Electricity Supplier has demanded enhanced charges, the matter was challenged by the Company at the Appellate Tribunal for Electricity ("the tribunal"). The Tribunal vide its order dated May 10, 2010 dismissed the appeal of the Supplier and directed to implement the tariff as determined by the Central Electricity Regulatory Commission vide its Order dated August 6, 2009. The Supplier has preferred an appeal with Hon''ble Supreme Court, pending finalisation of the outcome of the matter, the liabilities for the electricity charges are accounted for based on provisional bills provided by the Supplier.

During the previous year the Corporate Debt Restructuring (CDR) Cell through its Empowered Group has approved a debt restructuring scheme for the Company which provides for revision in interest rates,deferment of repayment of term loans, conversion of interest into Funded Interest term loan and additional infusion of Rs. 5000.00 lacs into the Company.

Subsequently, on 4th July, 2013 the company alloted 10,000,000 convertible warrants as per SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 to two promoter group companies @ Rs. 50 per warrant each convertible into one equity share of the company of Rs. 10 each at a price of Rs. 50/- each(including premium of Rs. 40/-). Out of the said 10,000,000 warrants, 3,495,000 warrants were converted into equity shares on 5th August, 2013.

During the year the CDR Scheme was revised by the CDR cell which provides for revision in working capital limits and term loan limits and provision of additional security and additional funds from the promoter group companies.

Necessary adjustments in the books of accounts have been made to reflect the impact of the aforesaid restructuring scheme.

Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to gratuity on terms not less favourable than The Provisions of Payment of Gratuity Act, 1972. The scheme is funded with an insurance company in the form of a qualifying insurance policy.

Notes:

i) The Company expects to contribute Rs. 350.87 lacs (Rs. 528.64 lacs) to Gratuity Fund in 2014-15.

ii) The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. The above information is certified by the Actuary.

iii) The management has relied on the overall actuarial valuation conducted by the actuary.

Related Party Disclosures

a. Name of Related Parties

Subsidiary Companies Nilachal Iron & Power Limited (NIPL) Jai Balaji Steels (Purulia) Limited (JBSPL) Jai Balaji Energy (Purulia) Limited (JBEPL)

Joint Venture Companies Rohne Coal Company Private Limited (RCCPL) Andal East Coal Company Private Limited (AECCPL)

Key Management Personnel Mr. Aditya Jajodia, Chairman and Managing Director

Mr. Sanjiv Jajodia, Wholetime Director

Relatives of Key Mr. Rajiv Jajodia, Brother of Wholetime Management Personnel Director

Mr. Gourav Jajodia, Nephew of Wholetime Director

Enterprises owned or Chandi Steel Industries Limited (CSIL) significantly influenced by Jai Balaji Jyoti Steels Limited (JBJSL) key management personnel Jai Salasar Balaji Industries Private or their relatives Limited (JSBIPL)

Balaji Ispat Udyog (BIU) Enfield Suppliers Limited (ESL) Hari Management Limited (HML) Jajodia Estate Private Limited (JEPL) Shri Marutaye Balaji Steels Limited (SMBSL)

The current financial year of the Company is for the year of twelve months from 1st April, 2013 to 31st March, 2014 as compared to previous financial year of nine months from 1st July, 2012 to 31st March, 2013.Hence,the current period''s figures are not comparable with previous period''s figures.

Figures in brackets represent previous financial year''s figures, which have been rearranged/regrouped wherever necessary to conform to this year''s classification.


Mar 31, 2013

1. General Information

Jai Balaji Industries Limited (the Company) is a public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on three stock exchanges in India (Bombay Stock Exchange, National Stock Exchange and Calcutta Stock Exchange). The Company is engaged in the manufacture and sale of steel and allied products.

2. Contingent liabilities not provided for:

(Rs. in lacs)

As at As at March 31, 2013 June 30, 2012

a) Claims against the Company not acknowledged as debts

i) Excise and Service Tax Demands under dispute/appeal 5,880.10 3,536.93

ii) Sales Tax/VAT matters under dispute/appeal 6,736.99 11,552.59

b) Letters of Credit, Bills discounted and Bank Guarantees outstanding 11,128.48 11,533.70

c) Custom Duty on Import of Equipment and spare parts 2,468.83 2,266.13 under EPCG Scheme

d) Guarantees and Counter guarantees given by the Company for 7,180.00 7,780.00 loans obtained by Subsidiary/other companies

e) Guarantee given for Joint Venture Companies 1,412.46 1,412.46

3. Estimated amount of contracts remaining to be executed on 1,545.89 1,498.92 Capital Account and not provided for

[Net of Advances Rs. 5,801.19 lacs (Rs. 5,738.88 lacs)]

Proportionate amount of pending capital commitments on account of Joint Venture Companies is Rs. 9.98 lacs [(Rs. 10.52 lacs (March 31, 2012)] as at March 31, 2013.

4 In respect of an electricity supply matter where the Electricity Supplier has demanded enhanced charges, the matter was challenged by the Company at the Appellate Tribunal for Electricity ("the tribunal"). The Tribunal vide its order dated May 10, 2010 dismissed the appeal of the Supplier and directed to implement the tariff as determined by the Central Electricity Regulatory Commission vide its Order dated August 6, 2009. The Supplier has preferred an appeal with Hon''ble Supreme Court, pending finalisation of the outcome of the matter, the liabilities for the electricity charges are accounted for based on provisional bills provided by the Supplier.

5 On 9th June 2011, the Income Tax Department had carried out Search, Seizure and Survey at the Company''s premises. Subsequent to the aforesaid, the Company has admitted no irregularities in the books. However, to buy peace and avoid litigation with the department, surrendered an Income of Rs. 3,805.50 lacs for the previous year ended 31/3/2011.The Income Tax authorities are yet to complete assessment proceedings in respect of search and seizure operations.

6 During the financial year, the Corporate Debt Restructuring (CDR) Cell through its Empowered Group has approved a debt restructuring scheme for the Company which provides for revision in interest rates, deferment of repayment of term loans, conversion of interest into Funded Interest term loan and additional infusion of Rs. 5,000.00 lacs into the Company. In view of the above Rs. 2,509.25 lacs as Money Received against share warrants have been brought up front as stipulated in the restructuring scheme and balance to be brought within a period of one year from the date of Letter of Approval dated 20th September 2012.

Necessary adjustments in the books of accounts have been made to reflect the impact of the aforesaid restructuring scheme.

7 Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to gratuity on terms not less favourable than The Provisions of Payment of Gratuity Act, 1972. The scheme is funded with an insurance company in the form of a qualifying insurance policy.

The disclosures required under Accounting Standard 15 ''Employee Benefits'' notified in the Companies (Accounting Standards) Rules 2006 are given below:

8. Related Party Disclosures a. Name of Related Parties

Subsidiary Companies Nilachal Iron & Power Limited (NIPL)

Jai Balaji Steels (Purulia) Limited (JBSPL) Jai Balaji Energy (Purulia) Limited (JBEPL)

Joint Venture Companies Rohne Coal Company Private Limited (RCCPL)

Andal East Coal Company Private Limited (AECCPL)

Key Management Personnel Mr. Aditya Jajodia, Chairman and Managing Director

Mr. Sanjiv Jajodia, Wholetime Director

Relatives of Key Management Personnel

Mr. Rajiv Jajodia, Brother of Wholetime Director

Mr. Devendra Prasad Jajodia, Brother of Wholetime Director

Mr. Aashish Jajodia, Brother of Chairman and Managing Director

Mr. Gourav Jajodia, Nephew of Wholetime Director

Smt. Kanchan Jajodia, Sister-in-law of Wholetime Director

Smt. Rina Jajodia, Sister-in-law of Chairman and Managing Director

Smt. Sangeeta Jajodia, Wife of Wholetime Director

Smt. Shashi Devi Jajodia, Sister-in-law of Wholetime Director

Smt. Seema Jajodia, Wife of Chairman and Managing Director

Enterprises owned or significantly influenced by key management personnel or their relatives

Chandi Steel Industries Limited (CSIL)

Jai Balaji Jyoti Steels Limited (JBJSL)

Jai Salasar Balaji Industries Private Limited (JSBIPL)

Balaji Ispat Udyog (BIU)

Enfield Suppliers Limited (ESL)

Hari Management Limited (HML)

Jain Vanijya Udyog Limited (JVUL)

Jajodia Estate Private Limited (JEPL)

K.D. Jajodia Steel Industries Private Limited (KDJSIPL)

Shri Marutaye Balaji Steels Limited (SMBSL)

8. i) The current financial year of the Company is for the period of nine months from 1st July, 2012 to 31st March, 2013 as compared to previous financial year of fifteen months from 1st April, 2011 to 30th June, 2012. Hence, the current period''s figures are not comparable with previous period''s figures.

ii) Figures in brackets represent previous financial year''s figures, which have been rearranged/regrouped wherever necessary to conform to this year''s classification.


Jun 30, 2012

1. General Information

Jai Balaji Industries Limited (the Company) is a public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on three stock exchanges in India (Bombay Stock Exchange, National Stock Exchange and Calcutta Stock Exchange). The Company is engaged in the manufacture and sale of steel and allied products.

(a) Terms/rights attached to equity shares

The Company has only one class of ordinary shares (equity shares) having at par value of Rs. 10/- each. Each shareholder of ordinary shares (equity shareholders) is entitled to one vote per share .The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to approval of the share holders in the ensuing Annual General Meeting except in the case of interim dividend . In the event of liquidation, the equity shareholders are eligilble to receive the remaining assets of the Company after distributions of all preferential amounts , in the proportions to their share holdings.

(Rs.in lacs)

2. Contingent liabilities not provided for:

As at As at June 30, 2012 March 31, 2011

a) Claims against the Company not acknowledged as debts

i) Excise and Service Tax Demands under dispute/appeal 3,536.93 3,812.03

ii) Sales Tax / VAT matters under dispute /appeal 11,552.59 195.03

iii) Others - 44.74

b) Letters of Credit, Bills discounted and Bank Guarantees outstanding 11,533.70 4,435.17

c) Custom Duty on Import of Equipment and spare parts under EPCG Scheme 2,266.13 945.35

d) Guarantees and Counter guarantees given by the Company for loans obtained by subsidiary company 4,500.00 4,500.00

e) Guarantee given for Joint Venture Companies 1,412.46 1,412.46

3. Estimated amount of contracts remaining to be executed on Capital Accountand not provided for [Net of Advances Rs. 5,738.88 lacs (Rs. 4,024.57 lacs)] 1,498.92 9,695.35



Proportionate amount of pending capital commitments on account of Joint Venture Companies is Rs. 10.52 lacs (Rs. 273.23 lacs) as at March 31, 2012 (as at March 31, 2011).

4. In respect of an electricity supply matter where the Electricity Supplier has demanded enhanced charges, the matter was challenged by the Company at the Appellate Tribunal for Electricity ("the tribunal"). The Tribunal vide its order dated May 10, 2010 dismissed the appeal of the Supplier and directed to implement the tariff as determined by the Central Electricity Regulatory Commission vide its Order dated August 6, 2009. The Supplier has preferred an appeal with Humble Supreme Court, pending finalisation of the outcome of the matter, the liabilities for the electricity charges are accounted for based on provisional bills provided by the Supplier.

5. On 9th June 2011, the Income Tax Department had carried out Search, Seizure and Survey at the Company's premises. Subsequent to the aforesaid, the Company has admitted no irregularities in the books. However, to buy peace and avoid litigation with the department, surrendered an Income of Rs. 3,805.50 lacs for the previous year ended 31/3/2011. The resultant tax liability of Rs. 1,228 lacs had been taken into account in income tax return of assessment year 2011-12. The Income Tax authorities are yet to complete assessment proceedings in respect of search and seizure operations.

6. Pursuant to the application submitted to the Corporate Debt Restructuring (CDR) Cell for restructuring of Company's Borrowings from Banks, the Final restructuring scheme has been taken up in the CDR Empowered Group (CDR EG) in its meeting held on 1st August, 2012 and was formally approved at the CDR Empowered Group (EG) meeting held on 24th August 2012. The company have received the Letter of Approval dated 20th September 2012 from the CDR cell. Pending execution of the Master Restructuring Agreement and sanction by all the lenders, no effect has been given in the financial results.

7. During the year, the Company has accounted for the following subsidies / incentives receivable from the Government of West Bengal under West Bengal Incentive Scheme aggregating to Rs. 1,921.75 lacs (Rs. 1,170.41 lacs):

8. Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to gratuity on terms not less favorable than The Provisions of Payment of Gratuity Act, 1972. The scheme is funded with an insurance company in the form of a qualifying insurance policy.

The disclosures required under Accounting Standard 15 'Employee Benefits' notified in the Companies (Accounting Standards) Rules 2006 are given below:

Note:

i. The Company expects to contribute Rs. 340.71 lacs (Rs. 340.94 lacs) to Gratuity Fund in 2012-13.

ii. The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. The above information is certified by the Actuary.

iii. The management has relied on the overall actuarial valuation conducted by the actuary.

(ii) Forward Cover Contacts outstanding at the yearend represents the following:

Contracts of US$ 1,650,000 (US$ 3,712,500) for minimizing the risk of currency exposure on foreign currency loans from banks aggregating Rs. 929.10 lacs (Rs. 1,657.63 lacs).

7. Till the year ended March 31, 2011, the Company was preparing its accounts based on the Schedule VI to the Companies Act 1956, during the year ended June 30, 2012 the revised Schedule VI notified under the Companies Act 1956, has become applicable to the Company. The Company has reclassified previous year figures to conform to this year's classification.


Mar 31, 2011

1 Nature of Operations

Jai Balaji Industries Limited is engaged in the manufacture and sale of steel and allied products.

(Rs. in lacs)

2. Contingent liabilities not provided for:

As at 31st As at 31st

March, 2011 March, 2010

a) Claims against the Company not acknowledged as debts

i) Excise and Service Tax Demands under dispute/appeal 3,812.03 1,632.88

ii) Sales Tax/VAT matters under dispute/appeal 195.03 9,579.39

iii) Others 44.74 162.61

b) Letters of Credit, Bills discounted and Bank Guarantees outstanding 4,435.17 6,974.22

c) Custom Duty on Import of Equipment and spare parts under EPCG Scheme 945.35 1,202.14

d) Guarantees and Counter guarantees given by the Company for loans obtained by subsidiary company 4,500.00 1,500.00

e) Guarantee given for Joint Venture Companies 1,412.46 1,412.46

2. In respect of an electricity supply matter where the Electricity Supplier has demanded enhanced charges, the matter was challenged by the Company at the Appellate Tribunal for Electricity ("the tribunal"). The Tribunal vide its order dated May 10, 2010 dismissed the appeal of the Supplier and directed to implement the tariff as determined by the Central Electricity Regulatory Commission vide its Order dated August 6, 2009. The Supplier has preferred an appeal with Hon'ble Supreme Court, pending finalisation of the outcome of the matter, the liabilities for the electricity charges are accounted for based on provisional bills provided by the Supplier.

4. Plant and Machinery includes certain assets taken on finance lease. At the expiry of the lease period, legal title would be passed on to the Company. There was no escalation clause in the lease agreement. There were no restrictions imposed by lease arrangements. There were no subleases.

5. The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to gratuity on terms not less favourable than The Provisions of Payment of Gratuity Act, 1972. The scheme is funded with an insurance company in the form of a qualifying insurance policy.

(ii) Forward Cover Contracts outstanding at the year end represents the following:

Contracts of US$ 3,712,500 (US$ 27,939,817) for minimizing the risk of currency exposure on foreign currency loans from banks aggregating Rs 1,657.63 lacs (Rs 12,625.40 lacs)

6. Excise duty on increase/decrease in stock represents differential excise duty on opening and closing stock of Finished Goods.

7. Related Party Disclosures

a. Name of Related Parties Subsidiary Companies

Nilachal Iron & Power Limited (NIPL)

Jai Balaji Steels (Purulia) Limited (JBSPL)

Jai Balaji Energy (Purulia) Limited (JBEPL)

Joint Venture Companies

Rohne Coal Company Private Limited (RCCPL)

Andal East Coal Company Private Limited (AECCPL)

Joint Venture Partner/ Co-Venturers

Bhushan Power & Steel Limited (BPSL)

Key Management Personnel

Mr. Aditya Jajodia, Chairman and Managing Director

Mr. Sanjiv Jajodia, Wholetime Director

Relatives of Key Management Personnel

Mr. Rajiv Jajodia, Brother of Wholetime Director

Mr. Devendra Prasad Jajodia, Brother of Wholetime Director

Mr. Aashish Jajodia, Brother of Chairman and Managing Director

Mr. Gaurav Jajodia, Nephew of Wholetime Director

Smt. Kanchan Jajodia, Sister-in-law of Wholetime Director

Smt. Rina Jajodia, Sister-in-law of Chairman and Managing Director

Smt. Sangeeta Jajodia, Wife of Wholetime Director

Smt. Shashi Devi Jajodia, Sister-in-law of Wholetime Director

Smt. Seema Jajodia, Wife of Chairman and Managing Director

Enterprises owned or significantly influenced by key management personnel or their relatives

Chandi Steel Industries Limited (CSIL)

Jai Balaji Jyoti Steels Limited (JBJSL)

Jai Salasar Balaji Industries Private Limited (JSBIPL)

Balaji Ispat Udyog (BIU)

Enfield Suppliers Limited (ESL)

Hari Management Limited (HML)

Jain Vanijya Udyog Limited (JVUL)

Jajodia Estate Private Limited (JEPL)

K.D. Jajodia Steel Industries Private Limited (KDJSIPL)

8. Interest in Joint Venture :

The Company has interest in following Joint Venture Companies which are in the process of setting up coal mining facilities at respective Coal blocks which they have been allotted.

9. Additional Information pursuant to the provisions of paragraphs 3, 4C and 4D of Part II of Schedule VI to the Companies Act 1956

10. Figures in brackets represent previous year's figures, which have been rearranged/regrouped wherever necessary to conform to this year's classification.


Mar 31, 2010

(Rs. in lacs)

1. Contingent liabilities not provided for :

As at 31st March, 2010 As at 31st March, 2009

a) Claims against the Company not acknowledged as debts

i) Excise and Service Tax Demands under dispute / appeal 1,632.88 1,183.08

ii) Sales Tax / VAT matters under dispute/appeal 9,579.39 10,727.92

iii) Others 162.61 -

b) Letters of Credit, Bills discounted and Bank Guarantees outstanding 6,974.22 5,959.98

c) Customs Duty on Import of Equipment and spare parts under EPCG Scheme 1,202.14 1,727.97

d) Guarantees and Counter guarantees given by the Company for loans obtained by subsidiary company 1,500.00 1,500.00

e) Guarantee given for Joint Venture Companies in terms of the joint venture agreements. 1,412.46 900.00

2. Estimated amount of contracts remaining to be executed on Capital Account and not provided for [Net of Advances Rs.10,553.91 lacs (Rs. 7,741.14 lacs)] 11,832.51 3,568.97

Proportionate amount of pending capital commitments on account of M/s Rohne Coal Company Private Limited, a Joint Venture Company is Rs. 2.96 lacs (Rs. 1.52 lacs).

3. In respect of an electricity supply matter where the Electricity Supply Company ("the Supplier") has demanded enhanced charges, the matter was challenged by the Company at the Appellate Tribunal for Electricity ("the Tribunal"). The Tribunal vide its order dated May 10, 2010 dismissed the appeal of the Supplier and directed to implement the tariff as determined by the Central Electricity Regulatory Commission vide its Order dated August 6, 2009. The Tribunal has also directed to the supplier to revise the bills raised by it for electricity consumption by the Company since April, 2006 onwards and refund / adjust the excess amount billed and collected along with interest.

Pending receipt of the revised bill from the supplier and the Companys inability to estimate such revised amount, refund/ adjustments, which are presently unascertainable, would be considered on receipt of revised bills from the supplier.

4. During the year, the Company has accounted for the following subsidies /incentives receivable from the Government of West Bengal under West Bengal Incentive Scheme aggregating to Rs.2,974.87 lacs (Rs. 2,533.35 lacs) including Rs. Nil (Rs. 328.05 lacs) for earlier years:

*includes Rs. 5.30 lacs (Rs. 164.70 lacs) on account of sale of Finished goods under trial run 6. Plant and Machinery and Vehicles includes certain assets taken on finance lease. At the expiry of the lease period, legal title would be passed on to the Company. There is no escalation clause in the lease agreement. There are no restrictions imposed by lease arrangements. There are no subleases.

Future obligations towards lease rentals (inclusive of finance charges) Rs. 116.86 lacs (Rs. 467.63 lacs) under the respective finance lease agreements as on the date of balance sheet are as per details given below:

5. Gratuity and Leave

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to gratuity on terms not less favourable than The Provisions of Payment of Gratuity Act, 1972. The Scheme is funded with an insurance company in the form of a qualifying insurance policy.

The disclosures required under Accounting Standard 15 Employee Benefits notified in the Companies (Accounting Standards) Rules 2006 are given below:

I. Expenses recognized in the statement of Profit & Loss Account for the year ended 31st March, 2010:

II. Net Liability/(Assets) recognized in the Balance Sheet as at 31st March, 2010

III. Change in the present value of the defined benefit obligation during the year ended 31st March, 2010 :

IV. Change in the Fair Value of Plan Assets during the year ended 31st March, 2010 :

V. The major categories of plan assets as a percentage of the fair value of the total plan assets

VI. The Principal assumptions used in determining gratuity and leave obligations for the Companys plans are shown below

VII. Amounts for the current and previous year are as follows :

*AS(15) Revised on Employee Benefits was adopted by the Company from 1st April, 2007 and hence, the above disclosures have been made accordingly.

Notes:

i. The Company expects to contribute Rs. 179.30 lacs (Rs. 93.00 lacs) to Gratuity Fund in 2010-11.

ii. The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. The above information is certified by the Actuary.

iii. The management has relied on the overall actuarial valuation conducted by the actuary.

6. a) During the year ended March 31, 2008, the Company had issued 9,600,000 Warrants to the Promoters and others carrying a right to convert each warrant into an equity share of Rs. 10 each at a premium of Rs. 316.90 per warrant within a period of 18 months from the date of allotment i.e. February 7, 2008. The warrant holders had paid Rs. 6178.41 lacs as application money against the above equity share warrants. However, due to non payment of the balance money, the Company has forfeited the above application money in terms of a resolution passed at its board meeting held on August 11, 2009 and credited the same to Capital Reserve Account.

b) The Company had also issued 8,359,000 Zero Coupon Compulsorily Convertible Debentures (CCDs) at a price of Rs. 326.90 each to Foreign Equity Investors in 2007-08. The debenture holders had the option to convert each debenture at any time into an equity share of Rs.10 each at a premium of Rs. 316.90 per debenture within 18 months from the date of allotment i.e. February 7, 2008. Accordingly, on July 31, 2009 the CCDs holders have exercised their option to convert the CCD into equal number of equity shares of Rs. 10 each.

c) During the year, the Company has issued 8,295,586 Equity Shares of Rs. 10 each to Qualified Institutional Buyers at a premium of Rs. 229.30 per share on October 28, 2009, as per chapter VIII of the Securities Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009. The proceeds received from the same aggregating to Rs. 19,851.34 lacs has been fully utilized for purchase of fixed assets, general business purpose and meeting out the issue expenses.

7. Based on the information available with the Company, the amounts due to Micro and Small Enterprises as per MSMED Act , 2006 are as follows :

8. Unhedged Foreign Currency Exposures outstanding at the year end are as follows

9. Loans and Advances and accrued interest thereon include the following balances

*Ceased to be a company under the same management in terms of Section 370 (1B) since March 31, 2009.

10. Basic and diluted earnings per share

11. The break-up of major components of Net Deferred Tax Liabilities as on 31st March, 2010 is as under

12. Excise duty on increase/decrease in stock represents differential excise duty on opening and closing stock of Finished Goods.

13. Related Party Disclosures

14. Managerial Remuneration

Notes :

1. As the liability for gratuity and leave encashment is provided on an actuarial basis for the Company as a whole, the amount pertaining to the directors is not included above.

2. Includes Rs. 56.52 lacs (Nil) transferred to Preoperative Expenses.

15. Auditors Remuneration

Out of above Rs. 49.66 lacs (Rs.51.02 lacs) included in Legal and Professional Charges and Rs. 15.59 lacs (Nil) adjusted under Securities Premium Account.

16. Interest in Joint Venture :

The Company has interest in following Joint Venture Companies which are in the process of setting up coal mining facilities at respective Coal blocks which they have been allotted.

Capital expenditure commitments and contingent liabilities of the joint venture are disclosed in Note 2 and Note 3 respectively.

* As the Joint Venture Company is formed during the year, therefore no information is available for the previous year.

17. Details of the Equity Shares pledged by the promoter or persons forming part of the promoter group (Promoter Group) of the Comapny as on the balance sheet date :

18. Additional Information pursuant to the provisions of paragraphs 3, 4C and 4D of Part II of Schedule VI to the Companies Act, 1956

19. Installed Capacity and Actual Production

Note : Licensed Capacity is not applicable as the industry is delicensed.

# Includes production for third party conversion 11,500 Mt (10,905 Mt) and 9,606.40 Mt (23,430 Mt) in respect of Ferro Alloys and Steel Bars/Rods Respectively.

#Includes Trial Run Sales of 1,846 MT (35,850 MT) valuing Rs. 640.85 lacs (Rs. 7,239.73 lacs) *excluding goods transferred for further processing as follows :

20. Value of Consumption of Imported and Indigenous raw materials, stores and spare parts.

21. Value of Imports (Calculated on CIF basis)

22. Expenditure in Foreign Currency (on accrual basis)

23. Earnings in Foreign Currency (on accrual basis)

24. Amount remitted in foreign currency on account of dividends :

*Excludes dividend paid to non-resident shareholders in Indian Rupees aggregating to Rs. 24.37 lacs (Rs. 0.31 lacs)

25. Figures in brackets represent previous years figures, which have been rearranged/regrouped wherever necessary to conform to this years classification. As per our attached report of even date

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