Contingent Liabilities, Contingent Assets and
Commitments:
Contingent Liabilities are not recognized but are disclosed
in the notes unless the possibility of an outflow of resources
embodying economic benefits is remote. Contingent assets
are disclosed in the financial statements only when the
inflow of economic benefits is probable. Contingent liability
and Contingent assets are reviewed at each reporting date.
Commitments are future liabilities for contractual expenditure,
classified and disclosed as estimated amount of contracts
remaining to be executed on capital account and not provided
for. Other commitments related to sales/procurements made
in the normal course of business are not disclosed to avoid
excessive details.
Taxes:
Tax expense represents the sum of the current income tax and
deferred tax.
Current income tax:
Current income tax assets and liabilities are measured at the
amount expected to be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to compute the
amount are those that are enacted or substantively enacted in
India, at the reporting date. Interest expenses and penalties,
if any, related to income tax are included in finance cost and
other expenses respectively. Interest Income, if any, related to
income tax is included in other income.
The Company periodically evaluates positions taken in the
tax returns with respect to situations in which applicable tax
regulations are subject to interpretation and establishes
provisions where appropriate.
Current tax assets and current tax liabilities are offset where
the Company has a legally enforceable right to offset the
recognised amount and intends either to settle on a net basis,
or to realise the asset and settle the liability simultaneously.
Deferred tax:
Deferred tax is recognized on temporary differences between
the tax bases of assets and liabilities and their carrying
amounts for financial reporting purposes at the reporting date.
A deferred tax liability is recognised based on the expected
manner of realisation or settlement of the carrying amount of
assets and liabilities, using tax rates enacted, or substantively
enacted, by the end of the reporting period. Deferred tax
assets are recognised for all deductible temporary differences,
the carry forward of unused tax credits and any unused tax
losses. Deferred tax assets are recognised to the extent that
it is probable that taxable profit will be available against which
the deductible temporary differences and the carry forward of
unused tax credits and unused tax losses can be utilised.
Deferred tax assets include Minimum Alternative Tax (MAT)
paid in accordance with the tax laws in India, to the extent it
would be available for set off against future current income tax
liability. Accordingly, MAT is recognised as deferred tax asset
in the balance sheet when the asset can be measured reliably
and it is probable that the future economic benefit associated
with the asset will be realised.
The carrying amount of deferred tax assets is reviewed at each
reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow
all or part of the deferred tax asset to be utilised.
Deferred tax assets and liabilities are measured at the tax
rates that are expected to apply in the year when the asset is
realised or the liability is settled, based on tax rates (and tax
laws) that have been enacted or substantively enacted at the
reporting date.
Current tax and deferred tax are recognised in statement
of profit and loss, except when they relate to items that are
recognised in other comprehensive income or directly in
equity respectively.
Deferred tax assets and deferred tax liabilities are offset when
the Company has legally enforceable right to offset current tax
assets against current tax liabilities and the deferred tax assets
and the deferred tax liabilities relate to income taxes levied by
the same taxation authority on the same taxable entity.
Non-current assets held for sale/ distribution to owners
and discontinued operations
The Company classifies non-current assets (or disposal
groups) as held for sale if their carrying amounts will be
recovered principally through a sale rather than through
continuing use. Held for sale is classified only if the asset
(or disposal group) is available for immediate sale in its
present condition subject only to the terms that are usual and
customary for sale for such assets (or disposal group) and its
sale is highly probable i.e. Management is committed to sale,
which is expected to be completed within one year from date
of classification.
Sale transactions include exchanges of non-current assets for
other non-current assets when the exchange has commercial
substance. Non-current assets (or disposal group) that is to be
abandoned are not classified as held for sale.
Non-current assets held for sale and disposal groups are
measured at the lower of their carrying amount and the fair
value less costs to sell except financial assets within the scope
of Ind AS 109 - Financial Instruments. Assets and liabilities
classified as held for sale are presented separately in the
balance sheet.
The determination of fair value less costs to sell includes use
of management estimates and assumptions. The fair value
of asset held for sale has been estimated using observable
inputs.
Non-current assets held for sale are not depreciated or
amortised. Interest and other expenses attributable to the
liabilities of a disposal group classified as held for sale are
continue to be recognised.
Non-current asset (or disposal group) is reclassified from held
to sale if the criteria are no longer met and measured at lower
of:
[i] Its carrying amount before the asset (or Disposal
group) was classified as held for sale, adjusted for any
depreciation, amortisation or revaluations that would
have been recognised had the asset (or disposal group)
not been classified as held for sale, and
[ii] Its recoverable amount at the date of the subsequent
decision not to sell.
Any adjustment to the carrying amount of a non-current asset
that ceases to be classified as held for sale is charged to
profit or loss from continuing operations in the period in which
criteria are no longer met.
A disposal group qualifies as discontinued operation if it is a
component of an entity that either has been disposed off, or is
classified as held for sale, and:
[i] Represents a separate major line of business or
geographical area of operations
[ii] Is part of a single co-ordinated plan to dispose of a
separate major line of business or geographical area of
operations, or
[iii] Is a subsidiary acquired exclusively with a view to resale.
Fair value measurement
The Company measures financial instruments, such as,
derivatives at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The fair value
measurement is based on the presumption that the transaction
to sell the asset or transfer the liability takes place either:
[i] In the principal market for the asset or liability, or
[ii] In the absence of a principal market, in the most
advantageous market accessible by the Company for the
asset or liability.
The fair value of an asset or a liability is measured using the
assumptions that market participants would use when pricing
the asset or liability, assuming that market participants act in
their economic best interest.
A fair value measurement of a non-financial asset takes into
account a market participant's ability to generate economic
benefits by using the asset in its highest and best use or by
selling it to another market participant that would use the asset
in its highest and best use.
The Company uses valuation techniques that are appropriate in
the circumstances and for which sufficient data are available to
measure fair value, maximising the use of relevant observable
inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or
disclosed in the financial statements are categorised within the
fair value hierarchy, described as follows, based on the lowest
level input that is significant to the fair value measurement as
a whole:
[i] Level 1 — Quoted (unadjusted) market prices in active
markets for identical assets or liabilities
[ii] Level 2 — Valuation techniques for which the lowest level
input that is significant to the fair value measurement is
directly or indirectly observable
[iii] Level 3 — Valuation techniques for which the lowest level
input that is significant to the fair value measurement is
unobservable
For assets and liabilities that are recognised in the financial
statements at fair value on a recurring basis, the Company
determines whether transfers have occurred between levels
in the hierarchy by re-assessing categorisation (based
on the lowest level input that is significant to the fair value
measurement as a whole) at the end of each reporting period.
The Company determines the policies and procedures for
both recurring fair value measurement, such as derivative
instruments and unquoted financial assets measured at fair
value, and for non-recurring measurement, such as assets
held for distribution in discontinued operations.
External valuers are involved for valuation of significant
assets, such as properties and unquoted financial assets,
and significant liabilities, such as contingent consideration.
Selection criteria include market knowledge, reputation,
independence and whether professional standards are
maintained.
At each reporting date, the Company analyses the movements
in the values of assets and liabilities which are required
to be remeasured or re-assessed as per the Company's
accounting policies. For this analysis, the Company verifies
the major inputs applied in the latest valuation by agreeing
the information in the valuation computation to contracts and
other relevant documents.
The Company, in conjunction with the Company's external
valuers, also compares the change in the fair value of each
asset and liability with relevant external sources to determine
whether the change is reasonable.
For the purpose of fair value disclosures, the Company has
determined classes of assets and liabilities on the basis of the
nature, characteristics and risks of the asset or liability and the
level of the fair value hierarchy as explained above.
Convertible Preference Shares/ Bonds [Liability]
Convertible Preference Shares/ Bonds are separated into
liability and equity components based on the terms of the
contract.
On issuance of the convertible Preference Shares/ Bonds,
the fair value of the liability component is determined using
a market rate for an equivalent non-convertible instrument.
This amount is classified as a financial liability measured at
amortised cost (net of transaction costs) until it is extinguished
on conversion or redemption.
The remainder of the proceeds is allocated to the conversion
option that is recognised as equity. Transaction costs are
deducted from equity, net of associated income tax. The
carrying amount of the conversion option is not remeasured
in subsequent years.
Transaction costs are apportioned between the liability and
equity components of the Preference Shares/ Bonds based
on the allocation of proceeds to the liability and equity
components when the instruments are initially recognised.
Earnings per share
Basic earnings per equity share is computed by dividing net
profit after tax by the weighted average number of equity
shares outstanding during the year. Diluted earnings per
equity share is computed by dividing adjusted net profit after
tax by the aggregate of weighted average number of equity
shares and dilutive potential equity shares during the year.
Financial instruments
Financial assets and liabilities are recognized when the
Company becomes a party to the contractual provisions of the
instruments.
Cash and Cash Equivalents
Cash and cash equivalent in the balance sheet comprise
unrestricted cash at banks and on hand and unrestricted
short-term deposits with an original maturity of three months
or less, which are subject to an insignificant risk of changes
in value.
For the purpose of the statement of cash flows, cash and
cash equivalents consist of unrestricted cash and short-term
deposits.
Financial Assets
Initial Recognition & measurements
Financial instruments are initially measured at fair value
including transaction costs unless they are classified at fair
value through profit and loss, in which case the transaction
costs are expensed immediately. However, trade receivables
that do not contain a significant financing component are
initially measured at transaction price. Subsequent to initial
recognition, these instruments are measured in accordance
with their classification as set out below.
Subsequent measurement
Measurement of financial assets is done as below:
[i] Amortised cost, if the financial asset is held within a
business model whose object is to hold financial assets in
order to collect contractual cash flows and the contractual
terms of the financial asset give rise on specific dates
to cash flows that are solely payments of principal and
interest on the principal amount outstanding,
[ii] Fair value through profit or loss (FVTPL)
Investment in Subsidiaries, Associates and Joint Ventures
The Company has accounted for its investments in equity
shares and compulsory convertible preference shares
of subsidiaries, associates and joint venture at cost less
accumulated impairment losses, if any except when these
investments are classified as held for sale. On disposal of
investments in subsidiaries, associates and joint venture, the
difference between net disposal proceeds and the carrying
amounts are recognised in the Statement of profit and loss.
Other Equity Investments
All equity investments [other than investment in Subsidiaries,
Associates and Joint Ventures] are measured at fair value, with
value changes recognised in Statement of Profit and Loss.
In case of funding to subsidiary companies in the form of
interest free or concession loans and preference shares,
the excess of the actual amount of the funding over initially
measured fair value is accounted as an equity investment.
De-recognition of financial assets
A financial asset (or, where applicable, a part of a financial
asset or part of a group of similar financial assets) is primarily
de-recognised when:
[i] The rights to receive cash flows from the asset have
expired, or
[ii] The Company has transferred its rights to receive cash
flows from the asset or has assumed an obligation to pay
the received cash flows in full without material delay to
a third party under a ‘pass-through' arrangement; and
either (a) the Company has transferred substantially all
the risks and rewards of the asset, or (b) the Company
has neither transferred nor retained substantially all the
risks and rewards of the asset, but has transferred control
of the asset.
On derecognising of a financial asset in its entirety, the
difference between the asset's carrying amount and the sum
of the consideration received or receivable and the cumulative
gain or loss that had been recognised in other comprehensive
income and accumulated in equity is recognised in profit or
loss.
Impairment of financial assets
In accordance with IND AS 109, the Company applies Expected
Credit Loss (ECL) Model for measurement & recognition of
impairment loss on the following financial assets & credit risk
exposure.
[i] Financial assets that are debt instruments, and are
measured at amortised cost, e.g. loans, debt securities,
deposits, trade receivables and bank balance.
[ii] Financial assets that are debt instruments and are
measured as at FVTPL.
[iii] Lease receivables under Ind AS 17.
[iv] Trade receivables
[v] Contract assets
[vi] Loan commitments which are not measured as at FVTPL.
[vii] Financial guarantee contracts which are not measured as
at FVTPL.
The Company follows ‘simplified approach' for recognition of
impairment loss allowance on:
[i] Trade receivables including contract assets; and
[ii] All lease receivables resulting from transactions within the
scope of Ind AS 17
The application of simplified approach does not require the
Company to track changes in credit risk. Rather, it recognises
impairment loss allowance based on lifetime ECLs at each
reporting date, right from its initial recognition.
For recognition of impairment loss on other financial assets
and risk exposure, the Company determines that whether
there has been a significant increase in the credit risk since
initial recognition. If credit risk has not increased significantly,
12-month ECL is used to provide for impairment loss. However,
if credit risk has increased significantly, lifetime ECL is used.
If, in a subsequent period, credit quality of the instrument
improves such that there is no longer a significant increase
in credit risk since initial recognition, then the entity reverts to
recognising impairment loss allowance based on 12-month
ECL.
ECL impairment loss allowance (or reversal) is recognized
during the period as income / expense in the statement of
profit and loss.
Financial assets measured as at amortised cost, contractual
revenue receivables and lease receivables: ECL is presented
as an allowance, i.e., as an integral part of the measurement
of those assets in the balance sheet. The allowance reduces
the net carrying amount. Until the asset meets write-off criteria,
the Company does not reduce impairment allowance from the
gross carrying amount.
For assessing increase in credit risk and impairment loss,
the Company combines financial instruments on the basis
of shared credit risk characteristics with the objective of
facilitating an analysis that is designed to enable significant
increases in credit risk to be identified on a timely basis.
Equity Instruments and Financial liabilities
Equity Instruments
An equity instrument is any contract that evidences a residual
interest in the assets of the Company after deducting all of
its liabilities. Equity instruments which are issued for cash are
recorded at the proceeds received, net of direct issue costs.
Equity instruments which are issued for consideration other
than cash are recorded at fair value of the equity instrument.
Financial liabilities
Initial recognition & measurement
All Financial liabilities are recognised initially at fair value and
in case of loan & borrowings and payable, net-off directly
attributable transaction cost.
The Company's financial liabilities include trade and other
payables, loans and borrowings including bank overdrafts,
financial guarantee contracts and derivative financial
instruments.
Subsequent measurement
The measurement of financial liabilities depends on their
classification, as described below:
Financial liabilities at fair value through profit or loss [FVTPL]
Financial liabilities at fair value through profit or loss include
financial liabilities held for trading and financial liabilities
designated upon initial recognition as at fair value through
profit or loss. Financial liabilities are classified as held for
trading if they are incurred for the purpose of repurchasing
in the near term. This category also includes derivative
financial instruments entered into by the Company that are not
designated as hedging instruments in hedge relationships as
defined by Ind AS 109. Separated embedded derivatives are
also classified as held for trading unless they are designated
as effective hedging instruments.
Gains or losses on liabilities held for trading are recognised
in the profit or loss.
Financial liabilities designated upon initial recognition at fair
value through profit or loss are designated as such at the initial
date of recognition, and only if the criteria in Ind AS 109 are
satisfied. For liabilities designated as FVTPL, fair value gains/
losses attributable to changes in own credit risk are recognized
in OCI. These gains/ loss are not subsequently transferred to
P&L. However, the Company may transfer the cumulative gain
or loss within equity. All other changes in fair value of such
liability are recognised in the statement of profit or loss.
Loans and borrowings at amortised cost
After initial recognition, interest-bearing loans and borrowings
are subsequently measured at amortised cost using the
Effective Interest Rate [EIR] method. Gains and losses are
recognised in profit or loss when the liabilities are derecognised
as well as through the EIR amortisation process.
Amortised cost is calculated by taking into account any
discount or premium on acquisition and fees or costs that are
an integral part of the EIR. The EIR amortisation is included as
finance costs in the statement of profit and loss.
Where the terms of a financial liability is re-negotiated and the
Company issues equity instruments to extinguish all or part of
the liability (debt for equity swap), a gain or loss is recognised
in the Statement of Profit and Loss; measured as a difference
between the carrying amount of the financial liability and the
fair value of equity instrument issued.
Financial guarantee contracts
Financial guarantee contracts issued by the Company
are those contracts that require a payment to be made to
reimburse the holder for a loss it incurs because the specified
debtor fails to make a payment when due in accordance with
the terms of a debt instrument. Financial guarantee contracts
are recognised initially as a liability at fair value, adjusted for
transaction costs that are directly attributable to the issuance
of the guarantee. Subsequently, the liability is measured at
the higher of the amount of loss allowance determined as
per impairment requirements of Ind AS 109 and the amount
recognised less cumulative amortisation.
Derecognition of financial liabilities
A financial liability is derecognised when the obligation under
the liability is discharged or cancelled or expires. When an
existing financial liability is replaced by another from the same
lender on substantially different terms, or the terms of an
existing liability are substantially modified, such an exchange
or modification is treated as the derecognition of the original
liability and the recognition of a new liability. The difference in
the respective carrying amounts is recognised in the statement
of profit or loss.
Embedded derivatives
An embedded derivative is a component of a hybrid (combined)
instrument that also includes a non-derivative host contract -
with the effect that some of the cash flows of the combined
instrument vary in a way similar to a stand-alone derivative. An
embedded derivative causes some or all of the cash flows that
otherwise would be required by the contract to be modified
according to a specified interest rate, financial instrument
price, commodity price, foreign exchange rate, index of prices
or rates, credit rating or credit index, or other variable, provided
in the case of a non-financial variable that the variable is not
specific to a party to the contract. Reassessment only occurs
if there is either a change in the terms of the contract that
significantly modifies the cash flows that would otherwise be
required or a reclassification of a financial asset out of the fair
value through profit or loss.
If the hybrid contract contains a host that is a financial asset
within the scope of Ind AS 109, the Company does not separate
embedded derivatives. Rather, it applies the classification
requirements contained in Ind AS 109 to the entire hybrid
contract. Derivatives embedded in all other host contracts
are accounted for as separate derivatives and recorded at fair
value if their economic characteristics and risks are not closely
related to those of the host contracts and the host contracts
are not held for trading or designated at fair value though
profit or loss. These embedded derivatives are measured at
fair value with changes in fair value recognised in profit or loss,
unless designated as effective hedging instruments.
Reclassification of financial assets
The Company reclassify all affected financial assets
prospectively when, and only when Company changes its
business model for managing financial assets but financial
liability is not reclassified in any case.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net
amount is reported in the balance sheet if there is a currently
enforceable legal right to offset the recognised amounts and
there is an intention to settle on a net basis, to realise the
assets and settle the liabilities simultaneously.
Business Combination
Business combinations are accounted for using the acquisition
accounting method as at the date of the acquisition, which is
the date at which control is transferred to the Company. The
consideration transferred in the acquisition and the identifiable
assets acquired and liabilities assumed are recognised
at fair values on their acquisition date. Goodwill is initially
measured at cost, being the excess of the aggregate of the
consideration transferred and the amount recognised for non
controlling interests, and any previous interest held, over the
net identifiable assets acquired and liabilities assumed.
Transaction costs are expensed as incurred, other than those
incurred in relation to the issue of debt or equity securities. Any
contingent consideration payable is measured at fair value at
the acquisition date. Subsequent changes in the fair value of
contingent consideration are recognised in the Statement of
Profit and Loss.
Operating Segment
The Operating Segment is the level at which discrete financial
information is available. The “Chief Operating Decision Maker”
(CODM) allocates resources and assess performance at
this level. The Company has identified the below operating
segments:
1. Construction
2. Cement
3. Hotel / Hospitality & Golf Course
4. Real Estate
5. Power
6. Investments
Exceptional items
An item of income or expense which by its size, type or incidence
requires disclosure in order to improve an understanding of the
performance of the Company is treated as an exceptional item
and disclosed as such in the financial statements.
Critical accounting estimates, assumptions and judgments
Areas involving a higher degree of judgment or complexity,
and items which are more likely to be materially adjusted
due to estimates and assumptions turning out to be different
than those originally assessed are given here under. Detailed
information about each of these estimates and judgments is
included in relevant notes together with information about the
basis of calculation for each affected line item in the financial
statements.
(i) Carrying value of exposure in subsidiary and associate
companies
Equity investments in subsidiaries and associates
are carried at cost. At each balance sheet date, the
management assesses the indicators of impairment of
such equity investments. This requires assessment of
several external and internal factor which may affect the
carrying value of equity investments in subsidiaries and
associates. Similar assessment is carried for exposure
of the nature of investment in preference shares, loans
and other receivables from subsidiaries and associates.
A degree of judgement is required in establishing
recoverable amount. Judgements include considerations
of inputs such as expected earnings in future years,
liquidity risk, credit risk and volatility. Changes in
assumptions about these factors could affect the reported
fair value of these investments.
(ii) Evaluation of indicator of impairment of assets
The evaluation of applicability of indicators of impairment
of assets requires assessment of several external and
internal factors which could result in deterioration of
recoverable amount of assets.
(iii) Net realisable value of inventory and Inventory write down
The determination of net realisable value of inventory
involves estimates based on prevailing market conditions,
current prices and expected date of commencement
and completion of the Real Estate project, the estimated
future selling price, cost to complete projects, selling cost
and other factors.
(iv) Recognition of deferred tax assets
The extent to which deferred tax assets can be recognised
is based on an assessment of the probability of the future
taxable income against which the deferred tax assets can
be utilised.
(v) Probable outcome of matters included under Contingent
Liabilities
At each balance sheet date basis the management
judgment, changes in facts and legal aspects, the
Company assesses the requirement of provisions against
the outstanding contingent liabilities. However the actual
future outcome may be different from this judgment.
(vi) Estimation of Defined benefit obligation
Management's estimate of the defined benefit obligation
is based on a number of underlying assumptions such
as standard rates of inflation, mortality, discount rate
and anticipation of future salary increases. Valuation in
these assumptions may significantly impact the defined
benefit obligation amount and the annual defined benefit
expenses.
(vii) Estimated useful life of PPE and intangible assets
Useful lives of tangible and intangible assets are based
on the life prescribed in Schedule II of the Act. In cases,
where the useful lives are different from that prescribed in
Schedule II of the Act, they are based on internal technical
evaluation. Assumptions are also made, when the
Company assesses, whether an asset may be capitalised
and which components of the cost of the asset may be
capitalised. The estimation of residual value of assets is
based on management's judgment about the condition of
such asset at the point of sale of asset.
(viii) Fair value measurement of financial instruments
Management applies valuation techniques to determine
the fair value of financial instruments (where active market
quotes are not available). This involves developing
estimates and assumptions consistent with how market
participates would price the instrument.
(ix) Lease term
The lease term is a significant component in the
measurement of both the right-of-use asset and lease
liability. Judgment is exercised in determining whether
there is reasonable certainty that an option to extend
the lease or purchase the underlying asset will be
exercised, or an option to terminate the lease will not
be exercised, when ascertaining the periods to be
included in the lease term. In determining the lease term,
all facts and circumstances that create an economical
incentive to exercise an extension option, or not to
exercise a termination option, are considered at the lease
commencement date. Factors considered may include
the importance of the asset to the Company's operations;
comparison of terms and conditions to prevailing market
rates; incurrence of significant penalties; existence of
significant leasehold improvements; and the costs and
disruption to replace the asset. The Company reassesses
whether it is reasonably certain to exercise an extension
option, or not exercise a termination option, if there is a
significant event or significant change in circumstances.
Where the interest rate implicit in a lease cannot be readily
determined, an incremental borrowing rate is estimated to
discount future lease payments to measure the present
value of the lease liability at the lease commencement
date. Such a rate is based on what the Company
estimates it would have to pay a third party to borrow
the funds necessary to obtain an asset of a similar value
to the right-of-use asset, with similar terms, security and
economic environment.
(x) Contract estimates
The Company, being a part of construction industry,
prepares estimates in respect of each project to compute
project profitability. The two major components of contract
estimate are ‘claims arising during construction period'
(described below) and ‘estimated costs to complete the
contract'. While estimating these components various
assumptions are considered by the management such
as (i) Work execution in the manner expected so that
the project is completed timely (ii) consumption patterns
(iii) Assets utilisation (iv) wastage at normal level (v) no
change in design and the geological factors will be same
as communicated and (vi) price escalations etc. Due
to such complexities involved in the estimate process,
contract estimates are highly sensitive to changes in
these assumptions.
(xi) Recoverability of claims
The Company has claims in respect of cost over-run
arising due to client caused delays, suspension of
projects, deviation in design and change in scope of work
etc., which are at various stages of negotiation / discussion
with the clients or under arbitration. The realisability of
these claims are estimated based on contractual terms,
historical experience with similar claims. Changes in facts
of the case or the legal framework may impact realisability
of these claims. The Company assesses the carrying value
of various claims periodically and makes adjustments for
amount arising from the legal/ arbitration proceedings/
negotiation with the clients that they may be involved in
from time to time. Interest on claims being awarded on
favourable arbitration / legal proceedings is recognised
as interest income that reflects the consideration the
Company has received or expects to receive.
Estimates and judgments are continually evaluated. They are
based on historical experience and other factors, including
expectations of future events that may have a financial impact
on the Company and that are believed to be reasonable under
the circumstances.
Recent Accounting Developments
Ministry of Corporate Affairs (“MCA”) notifies new standards
or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to
time. For the year ended March 31, 2025, MCA has notified
Ind AS - 117 Insurance Contracts and amendments to Ind
AS 116 - Leases, relating to sale and leaseback transactions,
applicable to the Group w.e.f. April 1, 2024. The Company
has reviewed the new pronouncements and based on its
evaluation has determined that it does not have any significant
impact in its financial statements.
“2.1” Addition in Plant & Equipment includes ' Nil Lakhs [Previous year ' Nil Lakhs] on account of exchange difference during
the year.
“2.2” Building includes ' 750/- [Previous year ' 750/-] for cost of shares in Co-operative Societies.
“2.3” Property, Plant & Equipment and Intangible Assets to the extent of ' 1114340 Lakhs (Gross Value including CWIP) [Previous
Year ' 11,04,111 Lakhs] and ' 501722 Lakhs (Net Value) [Previous Year ' 5,45,411 Lakhs] are given as security for availing
financial assistance from lenders. For details of exclusive security refer Note No.13.
“2.4” For Disclosure of contractual commitments for the acquisition of Property, Plant & Equipment refer Note No.34.
“2.5” Adjustable receipts against Contracts includes advances received of ' 4284 Lakhs [Previous Year ' 9292 Lakhs] against
hypothecation of certain plant and equipments having gross value of ' 14877 Lakhs [Previous Year ' 14174 Lakhs] and
Net Value of ' 11733 Lakhs [Previous Year ' 11366 Lakhs].
“2.6” Leasehold Land represents land taken under finance lease/perpetual lease. Property, Plant & Equipment other than lease
hold land does not includes any assets taken or given on finance lease.
“2.7” Borrowing cost capitalised during the year is Nil [Previous year Nil].
“2.8” For Disclosure of lease assets refer Note No.62.
“2.9” The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease
agreements are duly executed in favour of the lessee), are held in the name of the Company, except some immovable
assets in the name of amalgamated/merged entities are disclosed below:
“3.1” Losses suffered by Jaypee Agra Vikas Limited, East India Energy Private Limited and Bhilai Jaypee Cement Limited
[BJCL], subsidiary companies and erosion of their net worth, indicate an impairment loss in the carrying value of
investments as at 31st March 2025. Further, the plants of BJCL were not in operations during current year due to shortage
of working capital resulting into power disconnection, raw material shortage etc. Accordingly, an impairment assessment
has been carried out and a provision for impairment loss on investments of ' 21677 lakhs and reversal of provision of '1
lakhs has been recognised during the year.
As at 31st March 2024, management has considered that the losses suffered by Jaypee Agra Vikas Limited, subsidiary
company and MP Jaypee Coal Field Limited, associate company and the erosion of its net worth indicate an impairment
in the carrying value of the investment. Accordingly, the management has carried out an impairment assessment and has
estimated a provision of ' 4065 lakhs in subsidiary companies and ' 4 lakhs in associate company as a diminution in the
carrying value of its investment.
The carrying value of exposure in group companies are determined by the Company on evaluation of their financial
statements. The Company uses judgment to select from variety of methods and make assumptions which are mainly
based on conditions existing at the end of each reporting period.
“3.2” Vide its Order dated 07th March 2023, the Hon'ble NCLT, New Delhi inter alia, approved the resolution plan submitted
by Suraksha Realty Limited alongwith Lakshdeep Investments and Finance Private Limited (Successful Resolution
Applicants). YEIDA, Income tax Department and the Company had filed an appeal before the Hon'ble NCLAT, challenging
the approved resolution plan. The Hon'ble NCLAT has disposed the appeals filed by YEIDA, Income Tax Department and
the Company. YEIDA and the Company have filed appeal before the Hon'ble Supreme Court challenging the Hon'ble
NCLAT Order which are pending for adjudication presently. The Company has Written off Non-Current investments
amounting ' 84926 Lakhs in Jaypee Infratech Limited pursuant to Hon'ble NCLT and Hon'ble NCLAT Orders and
implementation of Resolution Plan by Successful Resolution Applicants.
“3.3” Yes Bank Limited has invoked pledge/ non disposal undertaking of 28,09,66,000 Equity shares of Bhilai Jaypee Cement
Limited held by the Company and assigned in favour of Assets Care & Reconstruction Enterprise Limited (ACRE) vide
Assignment Agreement dated 26th September, 2018 in previous years. For details refer Note No. 43.
“3.4” Yes Bank Limited vide Deed of Assignment dated 27th December, 2017 has invoked pledge of 50,000 Equity shares of
Yamuna Expressway Tolling Private Limited held by the Company and assigned in favour of Suraksha Asset Reconstruction
Private Ltd (SARPL) in previous years. Details may be referred in Note No. 44.
“3.5” The Company has complied with the requirements of 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.
“3.6” 25,00,000 11% Cumulative Redeemable Preference shares of ' 100/- each aggregating to ' 2500 lakhs allotted by Himalyan
Expressway Limited (HEL) on 05.12.2012, redeemable on expiry of ten years from the date of allotment, as consented
by the Company vide letter dated 12.11.2022, has been extended for 2 years i.e. upto 04.12.2024 on 18.11.2022 on the
same terms and conditions. HEL vide its letter dated 5th November 2024 has requested to the Company for according
its NOC/Consent for extension of time for redemption of these shares by another 8 years. The said letter has been sent
to the Resolution Professional (since powers of the board of the Company are suspended) for approval but the same is
still awaited. The investment is fully impaired.
“3.7” Madhya Pradesh State Mining Corporation Ltd. (MPSMCL), the Holding company of MP Jaypee Coal Fields Limited
[MPJCFL] informed that Madhya Pradesh State Mining Department has given approval to initiate process for voluntary
winding up of MPJCFL. MPJCFL in the EGM held on 06.02.2023 has appointed Liquidator for voluntary winding up of the
MPJCFL, associate Company and the process of liquidation is taken by Liquidator. The final approval of winding up is
pending with NCLT. The investment is impaired to the extent of ' 476 Lakhs
“3.8” Madhya Pradesh State Mining Corporation Ltd. (MPSMCL), the Holding company of Madhya Pradesh Jaypee Minerals
Limited [MPJML] informed that Madhya Pradesh State Mining Department has given approval to initiate process for
voluntary winding up of MPJML. MPJML in the EGM held on 17.01.2024 has appointed Liquidator for voluntary winding
up of the MPJML, associate Company and the process of liquidation is taken up Liquidator. The investment is fully
impaired.
“3.9” Pursuant to the Order by Hon'ble NCLAT dated 30.05.2025 upholding the Hon'ble NCLT Order dated 22.07.2024 with
respect to admission of Jaypee Cement Corporation Limited in IBC, the investment in equity shares and preference
shares of Jaypee Cement Corporation Limited is fully impaired.
[A] NON CURRENT BORROWINGS
“13.1” The Hon'ble NCLT Allahabad, vide its Order dated 03.06.2024 admitted the Company to Corporate Insolvency Resolution
Process (CIRP) and appointed Sh. Bhuvan Madan as Interim Resolution Professional, who was later confirmed as the
Resolution Professional (RP) by the Committee of Creditors (CoC) under Section 22 of Insolvency & Bankruptcy Code,
2016 (IBC).
As part of the CIRP the creditors of the Company were called upon to submit their claims with the RP in terms of the
applicable provisions of the IBC. The received claims have been verified/ being verified by RP and admitted basis the
provisions of the IBC and the list of creditors (updated from time to time) containing the status of claims has been
duly prepared and submitted to the Hon'ble NCLT and the IBBI. Accordingly Committee of Creditors under IBC was
constituted.
The Company has received intimation from National Asset Reconstruction Company Limited (NARCL) dated 11.03.2025
regarding assignment of loans (Including NCDs & ECB) of various lenders namely State Bank of India, ICICI Bank, IDBI
Bank, Axis Bank, Life Insurance of Corporation of India, Canara Bank, Bank of Maharastra, IFCI limited, Punjab National
Bank, Uco Bank, South Indian Bank, Punjab & Sind Bank, Jammu & Kashmir Bank, SIDBI, Standard Chartered Bank,
Karur Vyasa Bank, Exim Bank, Bank of India, Indian Overseas Bank, Indian Bank, Indusind Bank, Bank of Baroda, Union
Bank of India, Central Bank of India, Srei Equipment Finance Limited under the provisions of SARFAESI Act 2002.
The status of claims is subject to further revision on the basis of verification of additional documents/information sought
by RP as and when received and the outcome of the sub-judice matters, including application(s) filed before the NCLT
challenging the claim verification process.
The amount of claim admitted by RP is/may be different from the amount appearing in the financial statements as on 31st
March 2025. Claims will be dealt as per provision of IBC, post implementation of the approved Resolution plan, requisite
accounting adjustments will be made in the financial statements.
“13.1(a)” The Comprehensive Re-organization and Restructuring Plan (CRRP) for the Company and its wholly owned
subsidiary, namely, Jaypee Cement Corporation Limited (JCCL) had been approved by the Joint Lenders Forum on
22.06.2017. The CRRP envisaged the bifurcation of the entire debt of the Company into two parts - ‘Sustainable Debt'
and ‘Other Debt', which were proposed to be put in the following three buckets:
[i] Bucket 1 Debt of ' 1168900 Lakhs, being ‘other debt', was proposed to be discharged against the sale consideration
of identified Cement Plants of the Company and its Wholly owned Subsidiary to UltraTech Cement Limited [UTCL]
[ii] Bucket 2(a) Debt of ' 636700 Lakhs, being ‘sustainable debt' was proposed to be repaid in terms of the Master
Restructuring Agreement (MRA) dated 31st October, 2017.
[iii] Bucket 2(b) Debt of ' 1183355 Lakhs being ‘Other Debt' was proposed to be transferred to a Special Purpose
Vehicle (SPV) alongwith identified land of the Company.
However, the Scheme of Arrangement for transfer to SPV has since been rejected by Hon'ble NCLT vide its order dated
03.06.2024 which was upheld by Hon'ble NCLAT vide its order dated 06.12.2024 and appeal of suspended Directors
not admitted by Hon'ble Supreme Court vide its order dated 10.01.2025. As stated in note no. 13.1 above, the amount
of claim(s) is/may be different than the amount appearing in the Financial statements of the Company as on 31.03.2025.
These Financial Statements reflect liability position of company based on the CRRP of 2017. Requisite accounting
adjustments for differential amounts between the claims of financial creditors and amount reflecting in financial statements
will be made subsequently in the financial statements as per the provisions of the IBC, post implementation of the
approved Resolution plan, if any.
Pursuant to the order by Hon'ble NCLT dated 22.07.2024 initiating commencement of CIRP in JCCL and upheld by
Hon'ble NCLAT vide its order dated 30.05.2025 and appointment of an Interim Resolution Processional (IRP) in terms of
the IBC; debts amounting ' 87173 Lakhs which were transferred to the Company by JCCL as part of CRRP in earlier years
are now transferred back to JCCL during the current year.
[b] Outstanding Term Loans and Non Convertible Secured Debentures as stated in Note No 13.2[a], 13.3 [a] 1, 13.3 [a] 2
and 13.3 [a] 7 above excluding Core Area Project Loan together with all interest, liquidated damages, premia on pre¬
payment or on redemption, costs, expenses and other monies, stipulated in the Master Restructuring Agreement (MRA) are
secured by way of First Charge ranking pari-passu over movable and immovable fixed assets pertaining to Cement Division
(excluding Jaypee Super Cement Plant), Power division, Hotel Division (consisting of 5 Five Star Hotels) and Engineering
& Construction Division, except assets specifically charged to Lenders/Project authorities [both present and future] of the
Company.
[c] Outstanding Term Loans specified as Hold Back Loans stated at Note no. 13.3 [a] 8 above & 13.5 [c] below together with
all interest, liquidated damages, premia on pre-payment or on redemption, costs, expenses and other monies, stipulated in
the Master Restructuring Agreement (MRA) are secured by First Charge ranking pari-passu over movable and immovable
fixed assets of Jaypee Super Cement Plant of the company [both present and future] situated at Uttar Pradesh. The Loan
was to be repaid on redemption of “Series A Redeemable Preference Shares” aggregating ' 100000 Lakhs post transfer of
Jaypee Super Plant to Ultratech Cement Limited (UTCL), the transfer of which was subject to the satisfaction of conditions
precedent as mentioned in the sanctioned scheme between the company and UTCL for transfer of identified Cement
Plants. However, UTCL's failed to redeem “Series A Redeemable Preference Shares” within the permissible time that
expired on 28th June 2022. In event of conditions precedent could not be complied with, Hold Back Loans was repayable
over the next 15 years through equal quarterly instalments, commencing from 30th September 2022.
[d] Outstanding Term Loans specified as Core Area project loan included at Note no. 13.3 [a] 1 above along with BG facility
(devolved) of ' 10000 Lakhs by Punjab & Sind Bank at Note No.13.14 below together with all interest, liquidated damages,
premia on pre-payment or on redemption, costs, expenses and other monies, stipulated in the Master Restructuring
Agreement (MRA) are secured by way of First Charge ranking pari-passu on all immovable and movable fixed assets
pertaining to the core area sports infrastructure project [both present and future] and second pari-passu charge on all the
current assets including receivables pertaining to the aforesaid sports infrastructure project.
[e] Loans given by Lenders are further secured by exclusive security given to specific Lenders. Details of exclusive security as
per Master Restructuring Agreement/ Specific agreement is given below:
(i) NARCL (Assigned by State Bank of India )
(1) First Charge over 3.78 acres of Commercial Land situated at Sector - 128, Noida, (carrying value ' 3,373 lakhs)
(2) First charge ranking Pari passu over 37.763 hectare Land Situated in Chindwara, M.P, and assets related to
Mandla (North) Coal Mine (carrying value ' 90 lakhs) for term loan and Bank Guarantee Facility given for Mandla
(North) Coal Block
(ii) NARCL (Assigned by ICICI Bank Limited)
(1) First charge on all immovable properties admeasuring 100 acres of Land of Jaypee Infratech Ltd., situated at
Village - Tappal, Tehsil - Khair, Distt. - Aligarh, Uttar Pradesh together with all buildings and structures thereto
and all Plant & Machinery attached to the earth or permanently fastened to anything attached to the earth, both
present and future.
(2) pledge of 7,50,000 11% Cumulative Preference Shares of Himalyan Expressway Limited held by the Company.
(3) pledge of 1,02,12,000 12% Cumulative Preference Shares of Jaypee Agra Vikas Limited held by the Company.
(iii) NARCL (Assigned by Standard Chartered Bank)
(1) First charge over 30.33 acres of Commercial Land situated at Jaypee Sports City near F1 Stadium, SDZ, Sector
25, Gautam Budh Nagar, Uttar Pradesh (carrying value ' 20,368 lakhs).
(iv) Asset Care & Reconstruction Enterprise Limited (assigned by Yes Bank Limited)
(1) First charge over 2.5 acres of Commercial Land situated at Jaypee Sports City near F1 Stadium, SDZ, Sector 25,
Gautam Budh Nagar, Uttar Pradesh (carrying value ' 1,679 lakhs).
(v) NARCL (Assigned by The Karur Vysya Bank Limited)
(1) First charge over 2.53 acres of Commercial Land situated at Jaypee Sports City near F1 Stadium, SDZ, Sector
25, Gautam Budh Nagar, Uttar Pradesh (carrying value ' 1,699 lakhs).
(vi) NARCL (Assigned by The South Indian Bank Limited)
(1) First charge over 6.19 acres of Commercial Land situated at Jaypee Sports City near F1 Stadium, SDZ, Sector
25, Gautam Budh Nagar, Uttar Pradesh (carrying value ' 4,157 lakhs).
[f] Term Loans at Note no 13.3 [a] 5 together with all interest, liquidated damages, premia on prepayment or on redemption,
costs, expenses and other monies, stipulated in the Loan Agreements is secured by Subservient Charge on current assets
of the company excluding Real Estate Division. Term Loans stated at Note no 13.3 [a] 6 above together with all interest,
liquidated damages, premia on prepayment or on redemption, costs, expenses and other monies, stipulated in the Loan
Agreements secured by way of exclusive charge over certain Equipments of the Company.
[g] Loans stated at Note No.13.3 [a] 9 above includes loans that were to be transferred to Jaypee Infrastructure Development
Limited (JIDL) as per the scheme of arrangement between the company and JIDL filed with Hon'ble National Company Law
Tribunal, Allahabad, which has since been rejected as stated in note 13 (1) (a) above. It also includes loans which has been
considered to be settled against the identified real estate inventory of the company. However the said scheme has been
rejected by Hon'ble NCLT vide its order dated 03.06.2024. Further, we understand the same along with other borrowings
will be dealt as per the provision of IBC.
[h] Outstanding amount of Term Loans included in Note No. 13.3 [a] 9 above (excluding loans to be settled against the
identified inventory of the Company) and non convertible debentures at Note No.13.2 [a] and 13.5 [b] below which were
proposed to be transferred as part of SDZ Real Estate undertaking and were to be secured by way of 1st pari-passu
charge on identified land of Non-Core Area and Project Assets, situated at Jaypee Sports City near F-1 Stadium, Special
Development Zone [SDZ], Sector-25, Gautam Budh Nagar, Uttar Pradesh, being part of SDZ Real Estate undertaking to
be transferred as specified in the Scheme of Arrangement between JAL and JIDL filed with Hon'ble National Company
Law Tribunal, Allahabad. However, sanction of Scheme since been rejected as per Note 13 (1) (a) above. Save and except
exclusive security over certain assets created in favour of specific lenders are given below:
(i) NARCL (Assigned by Canara Bank)
(1) First charge over 25.007 acres of Commercial Land situated at Jaypee Sports City near F1 Stadium, SDZ, Sector
25, Gautam Budh Nagar, Uttar Pradesh (carrying value ' 16,794 lakhs).
(ii) NARCL (Assigned by State Bank of India)
(1) First charge over 22.2078 acres of Commercial Land situated at Jaypee Sports City near F1 Stadium, SDZ, Sector
25, Gautam Budh Nagar, Uttar Pradesh (carrying value ' 14,914 lakhs).
(2) First charge over 57.13 acres of Residential Land situated at Jaypee Sports City near F1 Stadium, SDZ, Sector
25, Gautam Budh Nagar, Uttar Pradesh (carrying value ' 38,366 lakhs).
(iii) NARCL (Assigned by IFCI Limited)
(1) First charge over 5.48 acres of Commercial Land situated at Jaypee Sports City near F1 Stadium, SDZ, Sector
25, Gautam Budh Nagar, Uttar Pradesh (carrying value ' 3,680 lakhs).
(iv) NARCL (Assigned by Punjab National Bank)
(1) First charge over 13.00 acres of Commercial Land situated at Jaypee Sports City near F1 Stadium, SDZ, Sector
25, Gautam Budh Nagar, Uttar Pradesh (carrying value ' 8,730 lakhs).
(v) NARCL (Assigned by Indian Bank)
(1) First charge over 8.70 acres of Commercial Land situated at Jaypee Sports City near F1 Stadium, SDZ, Sector
25, Gautam Budh Nagar, Uttar Pradesh (carrying value ' 5,843 lakhs).
[i] Land admeasuring 588.42 acres of the Company (forming part of Non-Core Area ) at Jaypee Sports City near F-1 Stadium,
Special Development Zone [SDZ], Sector-25, Gautam Budh Nagar, Uttar Pradesh (carrying value ' 395,160 lakhs) and all
assets of the company being part of SDZ real estate undertaking, were proposed to be transferred to new SPV(JIDL) as per
Scheme of arrangement between the Company and JIDL. The charge on this land was to be be vacated and new charge
in JIDL was to be created. Scheme, however, has been rejected as stated in Note No 13.1(a) above.
[j] (i) Interest rate applicable on loans stated at Note No.13.3 [a] 1, 13.3 [a] 2, 13.3 [a] 7 and 13.3 [a] 8 is sanctioned at
9.50% per annum with annual reset clause linked with 1 year MCLR of the respective lenders.
(ii) Interest rate applicable on loans stated at Note No.13.3 [a] 3 & 13.3 [a] 4 is 9.50% per annum.
(iii) Interest rate applicable on loans stated at Note No.13.3 [a] 5 and 13.3 [a] 6 is 13% per annum, linked with benchmark
rate of the lender.
(iv) Interest rate applicable on loans stated at Note No.13.3 [a] 9 is simple 9.50% per annum.
[k] Security includes security created / yet to be created / to be modified in accordance with the scheme of Restructuring/
Reorganization/Realignment of debt and other agreement with the Lenders.
[l] Outstanding amount of long term debts included in current maturities of long term debts as at 31.03.2025 includes
principal overdues amounting to ' 88,884 Lakhs. Interest accrued and due on borrowings amounting to ' 222,631 Lakhs
as at 31.03.2025, both principal and interest overdues pertain to the F.Y 2018-19, FY 2019-20, FY 2020-21, FY 2021-22, FY
2022-23 FY 2023-24, FY 2023-24 and FY 2024-25.
[m] Loan outstanding as on Balance sheet date are after considering loans which are partly / fully paid before their respective
due dates.
“13.4” Details of Foreign Currency Convertible Bonds (Unsecured) at Note No.13[II]A are given as under :
[a] The Company has issued Foreign Currency Convertible Bonds [FCCB-2017] comprising of 110400, 5.75% Series
A Convertible Bonds due September 2021 of USD 350 each aggregating to USD 38.640 Million and 110400, 4.76%
Series B Non Convertible Bonds due September 2020 of USD 740 each aggregating to USD 81.696 Million at par on
28.11.2017. These Bonds were issued in exchange of outstanding existing Bonds. Series A Bonds [FCCB-2017] are
convertible into equity shares of ' 2/- each fully paid at the conversion price of ' 27 per share, subject to the terms of
issue, with a fixed rate of exchange of ' 64 equal to USD 1.00 at any time on or after 28.11.2018 and prior to the close
of business on 23.09.2021. Unless converted, the Series A Bonds are repayable in 4 equal quarterly instalments
commencing from 31.12.2020 till 30.09.2021. Series B Bonds are repayable in structured quarterly instalments from
31.03.2018 till 30.09.2020.
As at 31.03.2025, 83715 Series A Bonds aggregating to USD 29.30 Million and 110400 Series B Bonds aggregating
to USD 46.040 Million are outstanding [Previous year, 83715 Series A Bonds aggregating to USD 29.30 Million and
110400 Series B Bonds aggregating to USD 46.040 Million are outstanding].
[b] Outstanding amount of Foreign Currency Convertible Bonds included in current maturities of long term debts as at
31.03.2025 includes principal overdues amounting to USD 75.340 Million [equivalent to ' 64,755 Lakhs]. Interest
amounting to ' 6,888 Lakhs for the FY 2024-25 (Previous Year ' 6,308 Lakhs) and cumulative till 31.03.2025, '38,042
Lakhs has not been provided on outstanding Foreign Currency Convertible Bonds (FCCBs). The above is in view
that before initiation of CIRP there were ongoing discussions with the Bondholders for settlement/ conversion of
the outstanding FCCBs into equity and waiver of interest. Now the same will be dealt as per provision of IBC, post
implementation of approved resolution plan requisite accounting adjustment will be made in the books of accounts.
Principal overdues pertain to the FY 2018-19, FY 2019-20, FY 2020-21 & FY 2021-22
[b] The Outstanding includes ' 2,064 Lakhs which was proposed to be transferred to SPV. The scheme has since been
rejected by Hon'ble NCLT wide its order dated 03.06.2024. Now the same will be dealt in accordance with IBC.
[c] The Outstanding includes ' 53 Lakhs which was to be paid on completion of condition precedent as mentioned in
13.3 [c] above.
“13.6” The Company accepted Fixed Deposit till 31.03.2014 under Fixed Deposits Scheme from Public which are repayable in
one year, two years and three years. The Company has repaid all its outstanding Fixed Deposits and interest thereon in
terms of the acceptance thereof, within the extension of time granted by the Hon'ble National Company Law Tribunal,
Allahabad regularizing all such payments vide its Order dated 23.10.2017. No amount is outstanding as at 31.03.2025 and
any unclaimed amount towards public deposits has since been transferred to Investor Education and Protection Fund.
Certain cheques/ warrants etc. issued by the company towards repayment of deposit to the depositors, are yet not
presented in Bank by the Depositors.
“13.7” Deferred payment of Land is the amount payable to Yamuna Expressway Industrial Development Authority [YEIDA] by
way of half yearly instalments for the land admeasuring 1085.3327 hectares [Inclusive of 99.9320 hectares for Village
Development and Abadi Extension] allotted to the Company. Lease Deeds in respect of 965.7390 hectares have been
executed and lease deeds for the balance 19.6617 hectares are yet to be executed, whereas land about 14.5993 hectares
remains to be allotted. Current maturities of long term debts includes principal overdue ' 66,537 Lakhs payable to
authority pertains to FY 2018-19, FY 2019-20, FY 2020-21, FY 2021-22, FY 2022-23, FY 2023-24 & FY 2024-25. Interest
accrued and due on borrowings includes interest overdues ' 47,725 Lakhs payable to the Authority pertains to FY 2020¬
21, FY 2021-22 FY 2022-23, FY 2023-24 & FY 2024-25.
Yamuna Expressway Industrial Development Authority (YEIDA) vide its communication dated 12.02.2020 had conveyed
its action relating to cancellation of the allotment of Land admeasuring 1085 Hectare (Core/Non-core area) located at
Special Development Zone (SDZ), Sector -25, Sports City, Greater Noida allotted to the Company inter alia, on account
of alleged non-payment of certain dues.
The Company challenged the above order before Hon'ble Allahabad High Court. The Hon'ble High Court of Judicature at
Allahabad vide Judgment dated 10.03.2025 in the matter of JaiPrakash Associates Limited v. State of Uttar Pradesh, Writ
Petition 6049 of 2020, has inter alia: (a) upheld the cancellation order passed by YEIDA, which cancelled the allotment
of YEIDA Sports City to JAL; (b) directed YEIDA as per its commitments to take over the housing projects and ensure
completion of the same; (c) directed YEIDA to appoint a Nodal Officer, who should be a gazetted officer (or equivalent) to
decide any issue regarding remaining amount payable by homebuyers; (d) directed YEIDA to make available necessary
funds irrespective of the sum collected by it from the allottees, for timely execution and completion of the housing
projects; and (e) directed that if any allottee chooses to withdraw from the project, the corresponding unit shall become
available for sale by YEIDA and consequently, all refund claims shall be borne by YEIDA.
The Company through RP has filed a Special Leave Petition bearing number 9497 of 2025 (SLP) before the Hon'ble
Supreme Court (SC), challenging the aforesaid judgment and inter alia seeking a stay on the aforesaid judgment as an
interim relief. The Hon'ble Supreme, vide its order dated 07.04.2025 in the SLP had asked YEIDA to clarify ‘as to how
it would get over the mortgage/security interests, which have been created with financial institutions, with its approval'.
Further, vide order dated 19.05.2025 in the SLP the Hon'ble SC had observed the following: ‘to balance the competing
interests of the parties as on date, we deem it appropriate to permit the authorities, including the YEIDA as well as the
Committee constituted pursuant to paragraph 187(c) in the impugned judgment, to proceed in the matter pursuant to
the directions of the High Court in the impugned judgment but any decision taken pursuant to such directions shall
not be given effect to without the permission of this Court'. The next date of hearing of the SLP is 29.07.2025. The
aforementioned SLP is sub judice.
In view of the SLP filed, Hon'ble Supreme Court Order dated 19.05.2025 and based on the legal opinion that JAL has an
arguable case, the carrying value of the Land and other Assets i.e. Race Track, Buildings etc is continued to be shown
“13.10” Lenders have assigned outstanding loan along with underlying securities as per the following in earlier years:
1. Yes Bank Limited & Karnataka Bank Limited has assigned outstanding loan to Asset Care & Reconstruction
Enterprise Limited
2. L& T Infrastructure Finance Company limited has assigned outstanding loan to Asset Reconstruction Company
India Ltd.
“13.11” The outstanding amount of Non-Convertible Debentures (NCDs) including interest accrued thereon aggregating to '
249800 Lakhs is secured to the extent of 52 percent on the basis of the existing security created on the certain Assets of
the company by way of equitable mortgage, registered mortgage & hypothecation.
[B] CURRENT BORROWINGS
“13.12” Working Capital Loans:
The Working Capital facilities [Fund based - ' 15000 Lakhs and Non Fund based - ' 358000 Lakhs] sanctioned/ assessed
as per Restructuring plan by the Consortium of 15 member Banks with ICICI Bank Limited, as Lead, are secured by way
of first charge ranking pari passu on Current Assets of the Company except Real Estate Division and Sports Division i.e.
Hypothecation of Stocks of Raw Materials, Work-in-Progress, Stock-in-Process, Finished Goods, Stores & Spares and
Book Debts and second Charge ranking pari-pasu over movable and immovable fixed assets pertaining to Cement
Division (excluding Jaypee Super Cement Plant), Power division, Hotel Division (consisting of 5 Five Star Hotels) and
Engineering & Construction Division, except assets specifically charged to Lenders/Project Authorities [both present
and future] of the Company. Bank Guarantee Limit of State Bank of India amounting to ' 8550 Lakhs is additionally
secured by mortgage over Land property bearing Pocket No. B-12 admeasuring 10500 Sq Mtr of total covered area of
all proposed building (FAR) and total area of all building admeasuring 2421.662 Sq mtr situated at Jaypee Greens, Gr
Noida (carrying value ' 446 lakhs). In terms of assignment agreement dated 11.03.2025, all the fund based working
capital facilities have been assigned to NARCL whereas Non Fund based facilities shall remain in the books of existing
lenders and if liability crystallize, the lenders have to pay at their own, NARCL shall not have any liability on this account.
Interest rate applicable on working capital loans is sanctioned at 9.50% per annum linked with 1 year MCLR of the
respective lenders.
“13.13” There are reconciliation items in cash credit accounts with banks aggregating ' 29,778 lakhs. These are mainly on
account of interest rate charged by some working capital lenders which is not in accordance with rate agreed as per
restructuring scheme sanctioned by lenders and other reasons.
“13.14” Bank Guarantee Devolvement
Yamuna Expressway Industrial Development Authority [YEIDA] has invoked Bank Guarantee (BG) of ' 10000 Lakhs,
issued by Punjab & Sind Bank during the financial year 19-20 . The BG Facility was secured alongwith Loan facility
specified at Note No.13.3 [e] above. Amount outstanding as at 31.03.2025 is ' 10000 Lakhs. The same is over due
since FY 19-20 and interest overdue is ' 12025 Lakhs pertaining to FY 2019-20, FY 2020-21, FY 2021-22, FY 2022-23
FY 2023-24 & FY 2024-25. The said liability has been assigned to NARCL vide agreement dated 11.03.2025.
In accordance with the provisions of the IBC, the RP has been entrusted with the responsibility of managing the affairs of the
Company on a “Going Concern” basis. The RP has taken on record and signed the present financial statements on 30.06.2025
in good faith and in order to ensure compliance of the Company with applicable laws including the Companies Act, 2013. In
doing so, the RP has relied on the assistance provided by the Company and the certifications, representations, warranties and
statements made in relation to the above financial statements. The RP has assumed that all the information and data provided is
in conformity with the Companies Act, 2013 and other applicable laws with respect to the preparation of the financial statements
and that all such information as well as data give a true and fair view of the position of the Company as of the dates and periods
indicated therein.
The review by RP is limited to the information available at the time of signing. The RP has not conducted any independent analysis
of the information provided to him and therefore, disclaims any responsibility for accuracy, authenticity, veracity or completeness
of the financial position or performance of the Company for periods prior to the CIRP commencement date.
The RP has published a Form G dated 10 January 2025 (as amended on 9 February 2025), inviting interested and eligible
Prospective Resolution Applicants (PRAs) to submit their expression of interest in the CIRP of the Company. Pursuant to
expression of Interest received from PRAs in response to Form G, the RP has published final list comprising of 25 entities which
have been found eligible PRAs in terms of the IBC Regulations. The Request for Resolution Plans approved by COC was issued
by RP The Resolution Plan has since been submitted by 5 PRA's till 24.06.2025 which are currently under evaluation.
As part of CIRP the RP has appointed Registered Valuers (RVs) (to undertake the valuation of the Company in accordance with
the provisions of the IBC) and a transaction review auditor (to assist the RP in the identification of avoidance transactions in terms
of Section 43, 45, 49, 50 and 66 of IBC). Necessary accounting changes on finality of relevant procedures, arising out of or in
relation to such valuation reports and transaction review audit, will be made in the financial statements, required if any.
NOTE No.”32”
“As part of the CIRP the creditors of the Company were called upon to submit their claims with the RP in terms of the applicable
provisions of the IBC. The received claims have been verified/ being verified by RP and admitted basis the provisions of the
IBC and the list of creditors (updated from time to time) containing the status of claims has been duly prepared and submitted
to the Hon'ble NCLT and the IBBI. Accordingly Committee of Creditors under IBC was constituted. The Company has received
intimation from National Asset Reconstruction Company Limited (NARCL) dated 11.03.2025 regarding assignment of loans of
various lenders namely State Bank of India, ICICI Bank, IDBI Bank, Axis Bank, Life Insurance Corporation of India, Canara Bank,
Bank of Maharastra, IFCI Limited, Punjab National Bank, Uco Bank, South Indian Bank, Punjab & Sind Bank, Jammu & Kashmir
Bank, SIDBI, Standard Chartered Bank, Karur Vyasa Bank, Exim Bank, Bank of India, Indian Overseas Bank, Indian Bank,
Indusind Bank, Bank of Baroda, Union Bank of India, Central Bank of India, Srei Equipment Finance Limited under the provisions
of SARFAESI Act 2002. Accordingly, the Constitution of CoC stands changed.
The status of claims is subject to further revision on the basis of verification of additional documents/information sought by RP
as and when received and the outcome of the sub-judice matters, including application(s) filed before the NCLT challenging the
claim verification process. The amount of claim admitted by RP is/may be different from the amount appearing in the financial
statements of the Company as on 31st March 2025. Claims will be dealt as per provision of IBC, post implementation of the
approved Resolution plan, requisite accounting adjustments will be made in the financial statements.
“The Company is executing Srisailam Left Bank Canal
Tunnel Scheme of Alimineti Madhava Reddy Project (SLBC
tunnel). The Srisailam Left Bank Canal (SLBC) tunnel is a
major infrastructure project in Telangana state, designed
to bring water from the Srisailam reservoir to the Nalgonda
district. The tunnel is located 400 mtr beneath the surface
of the hilly region. During the course of execution, a part of
SLBC tunnel got collapsed in the morning of 22.02.2025
trapping eight workers. The rescue operation at National &
State level was started immediately. Besides workers, Tunnel
Boring Machine and other equipments got also stuck in the
collapse. The State Government has constituted a Technical
Committee to examine various possible options to conclude
the ongoing rescue operations and for the continuation
and completion of the balance works of the SLBC Tunnel.
The Company has been continuously assessing the current
status. On prudence basis, the Company has recognised
provision for an impairment loss of ' 8578 Lakhs against the
said TBM and other machinery stuck up in incident.
NOTE No.”39”
The Company was operating Municipal Solid Waste (MSW)
Processing Plant at Chandigarh under the Implementation
Agreement with Municipal Corporation, Chandigarh (MCC).
On the Order of Hon'ble NGT, MCC initially paid the Tipping
fee, however, it stopped the payment. The Company invoked
arbitration and approached High Court for confirmation of
appointment of Arbitrator. MCC illegally and forcibly took over
the possession of the Plant in 2020. The Company approached
the Court of Ld. ADJ Chandigarh to restore the possession
of the plant and also initiated contempt proceedings against
the MCC and its Commissioner. MCC approached Hon'ble
High Court against the orders of Ld. ADJ. The matter of
Plant possession / claims is currently under Arbitration.
Considering the above matter, the Company has recognised
provision for an impairment loss of ' 1698 Lakhs towards
Property, plant and equipment at MSW plant, Chandigarh.
NOTE No.”40”
The Company has been executing 4-Laning of Varanasi
Gorakhpur section of NH-29 from km 88.000 (design chainage
84.160) to km. 148.000 (Design Chainage 149.540) [Package-
III from Village Birnon to Amilla Village] and 4-Laning of
Varanasi-Gorakhpur Section of NH-29 from km. 148.000
(design chainage 149.540) to km. 208.300 (design chainage
215.160) [Package-IV, Amilla Village to Gorakhpur] under
NHDP Phase -IV on EPC mode in the state of Uttar Pradesh.
During the year, the Company has submitted its claims
aggregating to ' 248417 Lakhs for both packages on account
of deployment of resources for removal of encroachment/
encumbrances within Right of Way (ROW), damages for
delay in providing land, damages towards payment of revised
minimum wages paid and additional cost incurred due to
extended duration of the Project.
National Highway Authority of India (NHAI) vide its letter dated
02.05.2025 has referred the claims/dispute for conciliation/
amicable settlement to the Conciliation & Settlement
Committee of Independent Experts established by NHAI.
Technical Division, NHAI has submitted that the claims of
the Company is not tenable as (i) Expenditure towards
dismantling of structures within ROW being after thought, (ii)
delay damages for land mostly attributable to the Contractor,
(iii) revision of minimum wages not constituting Change in Law
and (iv) additional cost incurred due to extended stay at site
are not based on facts and appear to be frivolous.
Further, NHAI has submitted its counter claims amounting
to ' 137687 Lakhs on account of supervision consultancy
services due to alleged delay in project completion, direct
revenue loss on account of toll collection, calculation of actual
liquidated damages and price adjustment etc. The Company
is representing that the claims by NHAI is not tenable and not
in consonance with the contract provisions.
NOTE No.”41”
The Company has entered into a Development Agreement with
Jaypee Infra Ventures Private Limited (JIVPL) in FY 2007-08 for
development of 180 acres of land at Jaypee Wishtown, Noida
(as amended). The security deposit under “Note No. 7 - Other
Assets - Current” include a sum of ' 146000 lakhs [Previous
Year ' 146000 lakhs ] deposited by the Company with JIVPL
in terms of the Development Agreement (as amended). The
Company has also made a provision for cost of development
of Land of ' 76334 lakhs [Previous Year ' 76334 lakhs] for built
up area pertaining to Jaypee Infra Ventures Private Limited,
which is subject to change depending upon the actual cost of
development.
NOTE No.”42”
(a) The Comprehensive Re-organization and Restructuring
Plan (CRRP) for the Company and its wholly owned
subsidiary, namely, Jaypee Cement Corporation Limited
(JCCL) had been approved by the Joint Lenders Forum
on 22nd June 2017. The CRRP envisaged the bifurcation
of the entire debt of the Company into two parts -
‘Sustainable Debt' and ‘Other Debt', which were proposed
to be put in the following three buckets:
[i] Bucket 1 Debt of '1168900 Lakhs, being ‘other
debt', was proposed to be discharged against the
sale consideration of identified Cement Plants of
the Company and its Wholly owned Subsidiary to
UltraTech Cement Limited [UTCL] .
[ii] Bucket 2(a) Debt of ' 636700 Lakhs, being
‘sustainable debt' was proposed to be repaid in
terms of the Master Restructuring Agreement (MRA)
dated 31st October, 2017.
[iii] Bucket 2(b) Debt of ' 1183355 Lakhs being ‘Other
Debt' was proposed to be transferred to a Special
Purpose Vehicle (SPV) alongwith identified land of
the Company.
However, the Scheme of Arrangement for transfer to
SPV has since been rejected by Hon'ble NCLT vide its
order dated 03.06.2024 which was upheld by Hon'ble
NCLAT vide its order dated 06.12.2024 and appeal of
suspended Directors not admitted by Hon'ble Supreme
Court vide its order dated 10.01.2025. These Financial
Statements reflect liability position of Company based on
the CRRP of 2017 and as stated in Note No. 32 above, the
amount of claim(s) is/may be different than the amount
appearing in the Financial statements of the Company
as on 31.03.2025. Requisite accounting adjustments
for differential amounts between the claims of financial
creditors and amount reflecting in financial statements
will be made subsequently in the financial statements as
per the provisions of the IBC, post implementation of the
approved Resolution plan, if any.
(b) The Company has an Investment in Equity and Preference
share capital of JCCL, having carrying value of ' 269236
Lakhs, Payable (Net) of ' 71954 Lakhs, Company has
given Corporate Guarantee / Shortfall Undertaking to
Lenders of JCCL, ' 51449 Lakhs outstanding as at
31.03.2025 and also ' 6534 Lakhs of Bank Guarantee
for JCCL out of working capital limits of the Company.
Pursuant to the order by Hon'ble NCLT dated 22.07.2024
initiating commencement of CIRP in JCCL and upheld
by Hon'ble NCLAT vide its order dated 30.05.2025 and
appointment of an Interim Resolution Processional (IRP)
in terms of the IBC; debts amounting ' 87173 Lakhs
which were transferred to the Company by JCCL as part
of CRRP in earlier years are now transferred back to
JCCL during the current year, consequently resulting into
decrease in interest payable amounting to ' 55423 Lakhs
and Finance costs to this extent amounting to ' 42914
Lakhs for the period upto 31.03.2024 and disclosed as
exceptional item and decrease in Inventories amounting
to ' 12509 Lakhs. The Company has also provided for
impairment/ fair value loss for an equivalent amount of
its Investment in Equity and Preference Share Capital of
JCCL amounting to ' 269236 Lakhs as an exceptional
item.
NOTE No.”43”
Yes Bank Limited (YBL) had granted term loan facility of '
46500 Lakhs and ' 4500 Lakhs to JCCL. YBL has subsequently
assigned the outstanding loan (along with all rights, benefits,
and interests associated thereto), in favour of Assets Care &
Reconstruction Enterprise Limited (ACRE) vide Assignment
Agreement dated 26th September, 2018. This assignment
includes the invoked pledge/ non disposal undertaking (NDU)
in respect of 28,09,66,000 Equity shares of Bhilai Jaypee
Cement Limited (BJCL) held by Company. ACRE has informed
about the transfer of the entire pledged/ NDU shares of BJCL
in its name as ‘pledgee'.
As per Company, YBL approved the CRRP and joined Master
Restructuring Agreement through Deed of Accession dated
29th November 2017. Therefore, purported assignment
of above facilities is not valid consequent to the approved
CRRP by all lenders including YBL. The Company further
communicated to YBL & ACRE that there is no default of the
Loan facilities in question and hence notice of invocation/
transfer of share is unwarranted.
The Company has maintained status quo ante of the
shareholding in its books of accounts and the above said
equity shares of BJCL and 752 Equity shares held in the
name of nominee shareholders aggregating to ' 40772
Lakhs continues to be included as part of Investments of the
Company in the financial statements.
Separately, Steel Authority of India Limited (SAIL) (being the
joint venture partner of Company with respect to Bhilai Jaypee
Cement Limited (BJCL)) had filed a company petition before
the NCLT, Allahabad alleging oppression and mismanagement,
primarily on the ground of the creation of pledge by the
Company over its shareholding in BJCL allegedly being in
violation of the shareholders agreement executed between
the Company and SAIL with respect to incorporation and
operation of BJCL. In the said petition, the NCLT vide its interim
order dated 1 April 2022 had injuncted parties from any further
transfer of shares, which order continues to operate till date.
The matter is subjudice.
NOTE No.”44”
Yes Bank Limited (YBL) had granted term loan facility of ' 70000
lakhs and disbursed ' 60000 lakhs to Yamuna Expressway
Tolling Limited (YETL). YBL vide Deed of Assignment dated
27th December, 2017 has assigned the outstanding amount
of above term loan in favour of Suraksha Asset Reconstruction
Private Ltd (SARPL) along with the Security documents
including pledge of 50000 Equity shares of ' 10/- each of YETL
held by the Company (for 70% Equity shares pledge yet to be
created). SARPL vide its letter dated 05.09.2018 has recalled
the Loan together with interest and further vide its letter dated
12.09.2018 informed the invocation of the pledged shares of
YETL.
Jaiprakash Associates Limited (JAL) vide its letter informed YBL
and SARPL that they have no obligation to service or repay the
debt and Company does not have copy of Deed of Assignment
and as such not bound by the terms and conditions of Deed of
Assignment. As on 31.03.2025 shares of YETL are in the name
of the Company. Pending settlement with the Lender/ ARC, the
Company continues to show the above investments as Non
Current Investments.
NOTE No.”45”
Lender (ICICI Bank) of MP Jaypee Coal Limited (MPJPCL) has
invoked the corporate guarantee given by the Company for
financial assistance granted to MPJPCL and served a notice
to the Company to make payment of ' 2575 lakhs outstanding
as on 31st August, 2018, ' 3950 lakhs outstanding as on
31.03.2025 (Previous Year ' 3484 lakhs). However the liability
has not been considered in the books of accounts, as the Coal
Block for which Mining Rights are held by MPJPCL is under
re-allotment by the Nominated Authority, Ministry of Coal
& the cost of development incurred by MPJPCL is yet to be
reimbursed by new bidder through Nominated Authority/ M P
State Mining Corporation Limited to MPJPCL.
NOTE No.”46”
IDBI Bank Limited had filed a petition with Hon'ble National
Company Law Tribunal, Allahabad Bench for admission
of Jaypee Infratech Limited (JIL) into corporate insolvency
resolution process under Section 7 of Insolvency and
Bankruptcy Code, 2016, which was admitted vide Order dated
9th August, 2017 and Interim Resolution Professional was
appointed.
Vide its Order dated 07th March 2023, the Hon'ble NCLT, New
Delhi inter alia, approved the resolution plan submitted by
Suraksha Realty Limited alongwith Lakshdeep Investments
and Finance Private Limited and allowed setting up of Interim
Monitoring Committee (s) (IMC) as may be provided in the
Plan. YEIDA, Income tax Department and JAL had filed an
appeal before the NCLAT, challenging the approved resolution
plan. The Hon'ble NCLAT has disposed the appeals filed by
YEIDA, Income Tax Department and JAL. YEIDA and JAL have
filed appeal before the Hon'ble Supreme Court challenging
the NCLAT Order. The appeals are pending for adjudication
presently.
Yamuna Expressway Industrial Development Authority (YEIDA)
vide its communication dated 12th February 2020 had
conveyed its action relating to cancellation of the allotment of
Land admeasuring 1085 Hectare (Core/Non-core area) located
at Special Development Zone (SDZ), Sector -25, Sports City,
Greater Noida allotted to the Company inter alia, on account of
alleged non-payment of certain dues.
The Company challenged the above order before Hon'ble
Allahabad High Court. The Hon'ble High Court of Judicature
at Allahabad vide Judgment dated 10 March 2025 in the
matter of Jaiprakash Associates Limited v. State of Uttar
Pradesh, Writ Petition 6049 of 2020, has inter alia: (a) upheld
the cancellation order passed by YEIDA, which cancelled the
allotment of YEIDA Sports City to JAL; (b) directed YEIDA as
per its commitments to take over the housing projects and
ensure completion of the same; (c) directed YEIDA to appoint a
Nodal Officer, who should be a gazetted officer (or equivalent)
to decide any issue regarding remaining amount payable by
homebuyers; (d) directed YEIDA to make available necessary
funds irrespective of the sum collected by it from the allottees,
for timely execution and completion of the housing projects;
and (e) directed that if any allottee chooses to withdraw from
the project, the corresponding unit shall become available for
sale by YEIDA and consequently, all refund claims shall be
borne by YEIDA.
The Company through RP has filed a Special Leave Petition
bearing number 9497 of 2025 (SLP) before the Hon'ble
Supreme Court (SC), challenging the aforesaid judgment
and inter alia seeking a stay on the aforesaid judgment as
an interim relief. The Hon'ble Supreme, vide its order dated
April 07, 2025 in the SLP had asked YEIDA to clarify ‘as to
how it would get over the mortgage/security interests, which
have been created with financial institutions, with its approval'.
Further, vide order dated May 19, 2025 in the SLP the Hon'ble
SC had observed the following: ‘to balance the competing
interests of the parties as on date, we deem it appropriate
to permit the authorities, including the YEIDA as well as the
Committee constituted pursuant to paragraph 187(c) in the
impugned judgment, to proceed in the matter pursuant to the
directions of the High Court in the impugned judgment but any
decision taken pursuant to such directions shall not be given
effect to without the permission of this Court'. The next date of
hearing of the SLP is July 29, 2025. The aforementioned SLP
is sub judice.
In view of the SLP filed, Hon'ble Supreme Court Order dated
19.05.2025 and based on the legal opinion that JAL has an
arguable case, the carrying value of the Land and other Assets
i.e. Race Track, Buildings etc is continued to be shown as an
Asset of the Company and balance amount payable by the
Company to YEIDA as liability and no other impact pursuant to
Hon'ble High Court Order dated 10.03.2025 including interest
on deposit receivable by Company from YEIDA has been given
in the financial statements during the pendency of the appeals.
NOTE No.”48”
In case of loss making segments of the Company, fair value
of Fixed Assets of the segments based on valuations by the
technical valuer or value in use based on future cash flows etc.
would be more than the carrying value of the Fixed Assets of
the segments and hence management is of the opinion that no
impairment provisioning is required in the carrying amount of
the Fixed Assets at this stage.
NOTE No.”49”
The Company earlier received Termination Notice for the
Mandla North Coal Mine allotted by Nominated Authority,
Ministry of Coal on account of not meeting eligibility criteria
mentioned in the Coal Mines Development and Production
Agreement along with instructions for invocation of the Bank
Guarantee amounting to ' 41838 Lakhs submitted by the
Company, in the form of Performance Security. The Hon'ble
High Court has granted a stay against the invocation of
Performance Guarantee and based on legal opinion taken, no
provision was considered necessary.
NOTE No.”50”
Confirmations/ Reconciliation of balances of certain secured &
unsecured loans, balances with banks including certain fixed
deposits, trade receivables, trade and other payables (including
of micro and small enterprises and including capital creditors)
and loans and advances are pending. However, as part of the
CIRP the creditors of the Company were called upon to submit
their claims with the RP in terms of the applicable provisions of
the IBC. The received claims have been verified/ being verified
by RP and admitted basis the provisions of the IBC and the
list of creditors containing the status of claims has been duly
prepared and submitted to the Hon'ble NCLT and the IBBI. The
amount of claim admitted by RP is/may be different from the
amount appearing in the financial statements of the Company
as on 31st March 2025. Claims will be dealt as per provision
of IBC, post implementation of the approved Resolution plan,
requisite accounting adjustments will be made in the financial
statements. For details refer Note No. 32.
NOTE No.”51”
Trade receivables include ' 235254 lakhs, outstanding as
at 31st March, 2025 (Previous year ' 274620 lakhs) which
represents various claims raised on the Clients based on the
terms and conditions implicit in the Engineering & Construction
Contracts in respect of closed / suspended/under construction
projects. These claims are mainly in respect of cost over run
arising due to suspension of works, client caused delays,
changes in the scope of work, deviation in design and other
factors for which Company is at various stages of negotiation/
discussion with the clients or under Arbitration/ litigation. The
Company is also taking all steps for its recovery in line with
the applicable government guidelines, wherever considered
necessary. On the basis of the contractual tenability, progress
of negotiations/ discussions/ arbitration/ litigations/ legal
opinions, the Company is of the view that these receivables
are recoverable.
NOTE No.”52”
There are certain Entry tax matters under Appeals aggregating
to ' 32235 lakhs (excluding interest, currently unascertainable)
pertaining to the State of Madhya Pradesh and Himachal
Pradesh. The Company has challenged these on account of
Constitutional Validity etc. in Hon'ble High Courts. No provision
has been made of the above in the financial statements and
based on legal opinion, the Company is of the opinion that
it will succeed in the appeal. Against the above liability, the
Company has deposited ' 16560 lakhs and also furnished
Bank Guarantee of ' 12543 lakhs. These are also included in
Note No.33(a) above.
Level 1:
This hierarchy includes financial instruments traded in active market and measured using quoted prices. The fair value of all
equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting date.
Level 2:
The fair value of financial instruments that are not traded in an active market is determined using valuation techniques for which
the lowest level input that is significant to the fair value measurement is directly or indirectly observable.
Level 3:
If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.
The Company's policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting
period.
There were no significant changes in the classification and no significant movements between the fair value hierarchy classifications
of assets and liabilities during FY 2024-25.
(b) Valuation technique used to determine fair value (Level I)
Specific valuation technique used to value financial instruments include:
- the use of quoted market price or NAV declared
- the fair value of the remaining financial instruments is determined using the discounted cash flow analysis.
(c) Fair value measurements using significant unobservable inputs (Level 3)
The following table presents the changes in level 3 items for the period ended 31st March, 2025 and 31st March, 2024
The carrying amounts of trade receivables including contract assets, receivable from related parties & other receivables, trade
payables, other payables, interest accrued on borrowings and cash and cash equivalents, bank balances are considered to be
the same as their fair values, due to their short term nature.
The fair value of unquoted equity share are based on net worth in their financial statements.
The fair value of preference share, bonds, loans and security deposits were calculated based on cash flows discounted using
a current lending rate. The Company evaluates creditworthiness of Non current trade receivables and takes into account the
expected credit loss of receivables. They are classified as level 3 fair value in the fair value hierarchy due to the use of unobservable
inputs including counter party credit risk.
The fair value of borrowings are based on discounted cash flows using a weighted average cost of capital. They are classified as
level 3 fair value in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.
NOTE No. “58”
Financial Risk Management
The Company's business activities are exposed to credit risk, liquidity risk and market risk. The Company's focus is to foresee the
unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.
The Company is undergoing Corporate Insolvency Resolution Process (CIRP) in accordance with the provisions of Insolvency &
Bankruptcy Code, 2016 (IBC) which may impact the risk disclosed below.
(a) Credit Risk
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. Credit risk encompasses
of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. The exposure
of the financial assets are contributed by trade receivables, contract assets, cash and cash equivalents, investments, Loans
and Other receivable. Trade receivables, Contract assets, Loans and Other receivables are typically unsecured.
Credit Risk Management
Credit risk on trade receivables and contract assets has always been managed by the Company through credit approvals,
establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit
terms in the normal course of business. The Contract assets relate to unbilled work in progress and substantially the same
risk characteristics as the trade receivables for the same type of contracts. The Company has therefore concluded that
the expected loss rates for trade receivables are a reasonable approximation of the loss rates for the contract assets. On
account of the adoption of Ind AS 109, the Company uses Expected Credit Loss [ECL] model to assess the impairment loss
or gain. The Company uses a provision matrix to compute the ECL allowance for trade receivables and contract assets. The
provision matrix takes into account available external and internal credit risk factors such as credit ratings from credit rating
agencies, financial conditions, ageing of accounts receivables and the Company's historical experience for customers.
The expected credit loss rates are based on the payment profiles of sales and historical credit losses experienced. The
historical loss rates are adjusted to reflect current and forward looking information on macroeconomic factors affecting the
ability of the customers to settle the receivables. The Company monitors the credit exposure on other financial assets on
case to case basis.
Security
For some trade receivables, the Company has obtained security deposits which can be called upon if the counterparty is in
default under the terms of the agreement.
Impairment of financial assets
The following financial assets are subject to the expected credit loss [ECL] model:
- trade receivables
- contract assets
- debt investments
- loans and other receivables carried at amortised cost
Credit Risk Exposure
The allowance for life time ECL on trade receivables, contract assets and receivable from related parties for the year ended 31st
March, 2025 is ' 11635 Lakhs [Previous year ' 3846 Lakhs (reversal)].
Credit risk on cash and cash equivalents and bank balances is limited as the Company generally invest in deposits with bank.
Investments primarily include investments in quoted and unquoted equity shares, preference shares and quoted bonds. Credit
risk on investments measured at amortised cost is considered to be negligible credit risk investment. The Company considers
the instruments to be negligible credit risk when they have no risk of default and the issuer has a strong capacity to meet its
contractual cash flow obligations in the near term.
[b] Liquidity Risk
Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. Prudent
liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding
through an adequate amount of committed credit facilities to meet obligations when due.
[i] Liquidity Risk Management
The Company's objective is to maintain a balance between continuity of funding and flexibility through the use of bank
overdrafts, bank loans, debentures, bonds and lease arrangements. The Company assessed the concentration of risk with
respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of
funding and debt maturing within 12 months can be rolled over with existing lenders.
The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet operational
needs. Any short term surplus cash generated, over and above the amount required for working capital management and
other operational requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested
in interest bearing term deposits and other highly marketable debt investments with appropriate maturities to optimise the
cash returns on investments while ensuring sufficient liquidity to meet its liabilities.
[c] Market Risk
The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices.
Market risk comprises three types of risk: currency risk, interest rate risk and other price risk.
[i] Foreign Currency Risk
The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange
rates. The company is exposed to foreign exchange risk arising from foreign currency borrowings [ECB]. Foreign currency
risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not
the Company's functional currency (INR).
Foreign Currency Risk Management
The Company's risk management committee is responsible to frame, implement and monitor the risk management plan
of the Company. The committee carry out risk assessment with regard to foreign exchange variances and suggests risk
minimization procedures and implement the same.
Foreign Currency Risk Exposure
The Company's exposure to foreign currency risk at the end of the reporting period expressed in INR are as follows:
[ii] 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 main interest rate risk arises from long term borrowings with variable rates, which expose the Company
to cash flow interest rate risk. The Company's fixed rate borrowings are carried at amortised cost. They are therefore not
subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate
because of a change in market interest rate.
Interest Rate Risk Management
The Company's risk management committee ensures all the current and future material risk exposures are identified,
assessed, quantified, appropriately mitigated, minimised, managed and critical risks when impact the achievement of the
Company's objective or threatens its existence are periodically reviewed.
NOTE No. “59”
Capital Management
For the purpose of the Company's capital management, capital includes issued equity capital, securities premium and all other
equity reserves attributable to the equity holders. The objective of the Company's capital management is to safeguard their ability
to continue as a going concern, so that they can continue to provide returns for shareholders and benefits other stakeholders
and maintain an optimal capital structure to reduce the cost of capital. The Company manages its capital structure and makes
adjustments in light of changes in economic conditions and the requirements of the financial covenants. The Company monitors
capital structure using gearing ratio, which is net debt divided by total equity plus net debt. The Company includes within net
debt, interest bearing loans and borrowings less cash and cash equivalents.
NOTE No. “63”
(a) Defined Contribution Plan
(i) Provident Fund
The Company makes contribution towards provident fund in India for qualifying employees at the percentage of basic
salary prescribed as per regulations. The provident fund contributions are made to Trust administered by the Company.
The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive
obligation. The expense recognised during the year towards Employer's Contribution to Provident Fund is ' 2096 Lakhs
[Previous year ' 2070 Lakhs].
(b) Defined Benefit Plans
(i) Gratuity
The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in
continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement / termination
is the employee's last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number
of years of service. The gratuity plan is a funded plan and the Company makes contributions to recognised funds in India.
The Company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time
based on estimations of expected gratuity payments.
The present value of the defined benefit obligation and the related current service cost are measured using the projected unit
credit method as per actuarial valuation carried out at balance sheet date.
(ii) Leave obligations
The leave obligations cover the Company's liability for earned leave.
Provision for gratuity and leave encashment are made as per actuarial valuation. The Company has a Trust namely Jaiprakash
Associates Employees Gratuity Fund Trust to manage funds towards Gratuity Liability of the Company. SBI Life Insurance
Company Limited and ICICI Prudential Life Insurance Company Limited have been appointed for management of the Trust
Fund to maximize returns for the benefit of the employees.
(c) Employee benefit schemes recognised in the financial statements as per actuarial valuation as on 31st March, 2025 and 31st
March, 2024 are as follows:
(e) Risk Exposures
Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is exposed
to various risks as follow -
(i) Salary Increases- Actual salary increases will increase the Plan's liability. Increase in salary increase rate assumption in
future valuations will also increase the liability.
(ii) Investment Risk - If Plan is funded then assets liabilities mismatch & actual investment return on assets lower than the
discount rate assumed at the last valuation date can impact the liability.
(iii) Discount Rate - Reduction in discount rate in subsequent valuations can increase the plan's liability.
(iv) Mortality & disability - Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact
the liabilities.
(v) Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at
subsequent valuations can impact Plan's liability.
(f) Defined benefit obligation and employer contributions
Expected contribution of gratuity for the year ending 31st March, 2026 are ' 830 lakhs (Previous year ' 960 lakhs).
NOTE No. “64”
The Free-hold Land [Agricultural] purchased by the Company for ' 3 Lakhs measuring 7 Bighas at Rangpuri, New Delhi had been
notified for acquisition U/s 4 & 6 of the Land Acquisition Act. The Company's claim for compensation is pending for settlement.
NOTE No. “65”
Expenditure incurred on corporate social responsibility (CSR) activities
No amount was required to be spent by the Company on the activities of CSR, as per provisions of Companies Act, 2013. The
Company has spent ' 17 lakhs (Previous year ' 357 lakhs) on activities of CSR during the year.
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,
(vii) The Company has not undertaken any transaction which is not recorded in the books of accounts that has been surrendered
or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey
or any other relevant provisions of the Income Tax Act, 1961).
(viii) The Company has not been declared a ‘Wilful Defaulter' by any bank or financial institution (as defined under the Companies
Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.
(ix) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017.
(x) Due to classification of the account of the Company as Non-Performing Assets (NPA), Working Capital Limits of the Company
have not been renewed by the Working Capital Consortium Banks since financial year 2019-20 and no operations in Cash
Credit Accounts have been permitted. Hence, the Company is not required to file quarterly returns / Statements w.r.t. Current
Assets of the Company to the Working Capital lenders. The Company have subsequently been admitted to Corporate
Insolvency Resolution Process.
(xi) During the year, the Company has not obtained any borrowings.
NOTE No. “67”
The previous year figures have been regrouped/recast/rearranged wherever considered necessary to conform to the current
year's classification..
NOTE No. “68”
All the figures have been rounded off to the nearest lakh
Signatures to Note Nos. “1" to “68"
As per our report of even date attached Taken on record
For DASS GUPTA & ASSOCIATES BHUVAN MADAN
Chartered Accountants Resolution Professional
Firm Registration No.000112N IBBI/IPA-001/IP-P01004/2017-2018/11655
C.A. NAVEEN ND GUPTA
Partner SOM NATH GROVER SUDHIR RANA
M.No.093777 Vice President & Company Secretary Chief Financial Officer
FCS - 4055
Place : Noida
Dated : 30th June, 2025
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