jindal cotex limited1. to receive, consider and adopt the audited balance sheet of the company as at...
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NOTICE
JINDAL COTEX LIMITEDREGD. OFFICE: V.P.O. JUGIANA, G.T. ROAD, LUDHIANA – 141 420
NOTICE is hereby given that the Sixteenth Annual General Meeting of the Members of JINDAL COTEX LIMITED will be thheld on Monday, 30 day of September, 2013 at 10.00 A.M. at the Registered Office of the Company at V.P.O. Jugiana,
G.T. Road, Ludhiana, to transact the following business:-
ORDINARY BUSINESS
1. To receive, consider and adopt the Audited Balance Sheet of the company as at 31st March, 2013 and Profit & Loss Account for the year ended on that date together with the reports of the Director's and Auditor's thereon.
2. To appoint a director in place of Sh. Aman Jindal, who retires by rotation and being eligible offers himself for re-appointment.
3. To appoint a director in place of Sh. Sahil Jindal, who retires by rotation and being eligible offers himself for re-appointment.
4. To appoint a director in place of Sh. Satish Kumar Gupta, who retires by rotation and being eligible offers himself for re-appointment.
5. To appoint a director in place of Sh. Vinay Shrivastav, who retires by rotation and being eligible offers himself for re-appointment.
6. To appoint Statutory Auditors to hold office from the conclusion of this Annual General Meeting until the conclusion of the next Annual General Meeting and to fix their remuneration.
SPECIAL BUSINESS
7. To consider, and if thought fit, to pass with or without modifications, the following resolution as an ordinary resolution:-
"RESOLVED THAT Sh. Rajesh Sharma, who was appointed by the Board of Directors as Additional Director of the company pursuant to the provisions of Section 260 of the Companies Act, 1956 and who by virtue of the provisions of the said section holds office upto the date of ensuing annual general meeting and in respect whom the company has received notice from a member under section 257 of the Companies Act, 1956 proposing his name for the appointment as Director of the company liable to retire by rotation be and is hereby appointed as a Director liable to retire by rotation."
8. To consider, and if thought fit, to pass with or without modifications, the following resolution as an ordinary resolution:-
"Resolved that in supersession of the earlier resolution passed by the Board of Directors and then by members in the Annual General Meeting held on 04.07.2008 and pursuant to the provisions of Sections 198, 269, 309 read together with Schedule XIII and other applicable provisions, if any, of the Companies Act, 1956 and in accordance with the recommendations and approval of the remuneration committee of the Board, the consent of the members of the company is accorded to the reappointment and payment of remuneration to Sh. Yash Paul Jindal as Wholetime Director of the company for a period of 1(One) year w.e.f. 1st July, 2013 upto 30th June, 2014 at a monthly remuneration of Rs. 1,00,000/- (Rs. One Lac) including perquisites, if any.
Resolved further that Sh. Yash Paul Jindal shall also be eligible to the following benefits which shall not be included in the computation of the ceiling on remuneration:
a) contribution to provident fund, superannuation fund or annuity fund to the extent these either singly or put together are not taxable under the Income Tax Act, 1961,
b) gratuity payable at a rate not exceeding half a month's salary for each completed year of service and,
c) encashment of leave at the end of tenure.
Resolved further that the Board of Directors be and is hereby authorised to vary, increase, expand or enhance the scope of remuneration and perquisites to the extent to which they may be enhanced, enlarged, widened, altered or varied in accordance with any provisions regarding payment of managerial remuneration under the companies Act, 1956 together with any amendments effected in further from time to time and that the terms and conditions as specified above be suitably amended to give effect to the same subject to the approval of the members."
9. To consider, and if thought fit, to pass with or without modifications, the following resolution as an ordinary resolution:-
"Resolved that in supersession of the earlier resolution passed by the Board of Directors and then by members in the Annual General Meeting held on 04.07.2008 and pursuant to the provisions of Sections 198, 269, 309 read together with Schedule XIII and other applicable provisions, if any, of the Companies Act, 1956 and in accordance with the recommendations and approval of the remuneration committee of the Board, the consent of the members of the company is accorded to the reappointment and payment of remuneration to Sh. Rajinder Jindal as Wholetime Director of the company for a period of 1(One) year w.e.f. 1st July, 2013 upto 30th June, 2014 at a monthly
“RESOLVED THAT M/s Raj Gupta & Co., Chartered Accountants, be and are hereby appointed as Statutory Auditors of the company in place of retiring Auditors, M/s Aggarwal Garg & Co., Chartered Accountants, who have shown their unwillingness to continue as auditors, to hold office from the conclusion of this Annual General Meeting until the conclusion of the next Annual General Meeting at a such remuneration and out of pocket expenses as may be mutually agreed upon between the Auditors and Board of Directors of the company.
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remuneration of Rs. 1,00,000/- (Rs. One Lac) including perquisites, if any.
Resolved further that Sh. Rajinder Jindal shall also be eligible to the following benefits which shall not be included in the computation of the ceiling on remuneration:
a) contribution to provident fund, superannuation fund or annuity fund to the extent these either singly or put together are not taxable under the Income Tax Act, 1961,
b) gratuity payable at a rate not exceeding half a month's salary for each completed year of service and,
c) encashment of leave at the end of tenure.
Resolved further that the Board of Directors be and is hereby authorised to vary, increase, expand or enhance the scope of remuneration and perquisites to the extent to which they may be enhanced, enlarged, widened, altered or varied in accordance with any provisions regarding payment of managerial remuneration under the companies Act, 1956 together with any amendments effected in further from time to time and that the terms and conditions as specified above be suitably amended to give effect to the same subject to the approval of the members."
10. To consider, and if thought fit, to pass with or without modifications, the following resolution as an ordinary resolution:-
"Resolved that in supersession of the earlier resolution passed by the Board of Directors and then by members in the Annual general Meeting held on 04.07.2008 and pursuant to the provisions of Sections 198, 269, 309 read together with Schedule XIII and other applicable provisions, if any, of the Companies Act, 1956 and in accordance with the recommendations and approval of the remuneration committee of the Board of Directors, the consent of the members of the company be and is hereby accorded to the reappointment and payment of remuneration to Sh. Ramesh Jindal as Wholetime Director of the company for the period of 1(One) year w.e.f. 1st July, 2013 upto 30th June, 2014 at a monthly remuneration of Rs. 1,00,000/- (Rs. One Lac) including perquisites, if any.
Resolved further that Sh. Ramesh Jindal shall also be eligible to the following benefits which shall not be included in the computation of the ceiling on remuneration:
a) contribution to provident fund, superannuation fund or annuity fund to the extent these either singly or put together are not taxable under the Income Tax Act, 1961,
b) gratuity payable at a rate not exceeding half a month's salary for each completed year of service and,
c) encashment of leave at the end of tenure.
Resolved further that the Board of Directors be and is hereby authorised to vary, increase, expand or enhance the scope of remuneration and perquisites to the extent to which they may be enhanced, enlarged, widened, altered or varied in accordance with any provisions regarding payment of managerial remuneration under the companies Act, 1956 together with any amendments effected in further from time to time and that the terms and conditions as specified above be suitably amended to give effect to the same subject to the approval of the members."
11. To consider, and if thought fit, to pass with or without modification(s) the following resolution as a special resolution:
"Resolved that pursuant to the provisions of Section 198, 269, 309 read together with Schedule XIII and other applicable provisions, if any, of the Companies Act, 1956 and in accordance with the recommendations and approval of the remuneration committee of the Board of Directors, the consent of the members of the company be and is hereby accorded to the re-appointment and payment of remuneration to Sh. Sandeep Jindal, as Managing Director of the company for a period of three years w.e.f. 1st October, 2013 upto 30th September, 2016 at a monthly remuneration of Rs. 2,50,000/- including perquisites, if any.
Resolved further that Sh. Sandeep Jindal shall also be eligible to the following benefits which shall not be included in the computation of the ceiling on remuneration:
a) contribution to provident fund, superannuation fund or annuity fund to the extent these either singly or put together are not taxable under the Income Tax Act, 1961,
b) gratuity payable at a rate not exceeding half a month's salary for each completed year of service and,
c) encashment of leave at the end of tenure.
Resolved further that the Board of Directors be and is hereby authorised to vary, increase, expand or enhance the scope of remuneration and perquisites to the extent to which they may be enhanced, enlarged, widened, altered or varied in accordance with any provisions regarding payment of managerial remuneration under the companies Act, 1956 together with any amendments effected in further from time to time and that the terms and conditions as specified above be suitably amended to give effect to the same subject to the approval of the members."
Place: LudhianathDate: 14 August, 2013
By order of the BoardFor Jindal Cotex Limited
(Sandeep Jindal)Chairman and Managing Director
2
a. A member entitled to attend and vote at the meeting is entitled to appoint a proxy to vote on his/her behalf at the meeting. The proxy need not be a member of the company. The proxy in order to be effective must be deposited at the Registered Office of the Company at least 48 hours before the time for the meeting. The blank Proxy form is enclosed.
b. The Register of Members and Share Transfer Books of the Company shall remain closed from 28th September, 2013 to 30th September, 2013 (both days inclusive).
c. Members desiring any information as regards accounts are requested to write to the company at its Registered Office at least 10 days before the date of Annual General Meeting so as to enable the Management to keep the information ready.
d. Members are requested to bring their copy of Annual Report to the Annual General Meeting as the practice of handling out copies of annual report at the Annual General Meeting has been discontinued in view of the high cost of paper and printing.
e. Explanatory Statement pursuant to the provisions of Section 173(2) of the Companies Act, 1956 for item No.7 to 11 of the notice is annexed.
f. The relevant details regarding the Directors seeking appointment/re-appointment in the Annual General Meeting as proposed in Item Nos. 2 to 5 and 7 to 11 of the notice, as required by Clause 49 of the Listing Agreement is also being annexed hereto separately and forms part of the notice.
g. The Ministry of Corporate Affairs has taken a 'Green Initiative in Corporate Governance' by allowing paperless compliances by the company and has issued circulars allowing service of notices/documents including Annual Report by e-mail to its members. To support this Green Initiative of the government in full measure, members who have not registered their e-mail addresses so far, are requested to register the same in respect of electronic holdings with the depository through their depository participants. Members who are holding shares in physical form are requested to get their e-mail addresses registered with the Registrar & Transfer Agent, M/s BIGSHARE SERVICES PRIVATE LIMITED, Mumbai.
h. The Shareholders are requested to notify change of address, if any, immediately to the Registrar & Transfer Agent, M/s BIGSHARE SERVICES PRIVATE LIMITED, Mumbai mentioning their Folio Number.
i. Annual accounts and related details of the subsidiary companies i.e. Jindal Medicot Limited, Jindal Specialty Textiles Limited, Himachal Textile Park Limited, Jindal Infrabiz Limited, Jindal Metalex Limited and Jindal International FZE are kept for inspection at the Registered Office of the company and at the subsidiary companies. Copy of the same will be provided to the members whenever required.
EXPLANATORY STATEMENT PURSUANT TO THE PROVISIONS OF SECTION 173(2) OF THE COMPANIES ACT, 1956
Item No. 7
The Board of Directors of the company has appointed Sh. Rajesh Sharma, as Additional Director of the company with effect from 23rd November, 2013. In terms of section 260 of the Companies Act, 1956, Sh. Rajesh Sharma, holds office of Director up to the date of ensuing annual general meeting. Pursuant to the provisions of section 257 of the Companies Act, 1956, the company has received a notice together with requisite deposit from a member signifying his intention to propose the appointment of Sh. Rajesh Sharma as a candidate for the office of Director of the company, liable to retire by rotation.
The Board of Directors are of the view that the appointment of Sh. Rajesh Sharma will be beneficial to the operations of the company.
The Board recommends the passing of the resolution.
None of the director is interested in the resolution.
Item No. 8, 9 & 10
Sh. Yash Paul Jindal, Sh. Rajinder Jindal and Sh. Ramesh Jindal have been appointed as Wholetime Directors of the company w.e.f.1st July, 2013 for a period of one year up to 30th June, 2014. Since the company has progressed well during their tenure as Wholetime Directors of the company, the Board of Directors propose to reappoint Sh. Yash Paul Jindal, Sh. Rajinder Jindal and Sh. Ramesh Jindal as Whole Time Directors of the company, in super session of the earlier resolution passed by the Directors and by the members in Annual General Meeting of the Company held on 4th July, 2008 and in accordance with the recommendations and approval of the remuneration committee of the Board of Directors and as per applicable provisions of the Companies Act, 1956 on the terms and conditions as contained in the resolution. The Board proposes to pay the remuneration even in the case of loss or inadequacy of the profits as per Schedule XIII and other applicable provisions if any, of the Companies Act, 1956.
These details may also be treated as the abstract of the terms and conditions for the appointment of the Wholetime Directors in compliance of section 302(1) of the Companies Act, 1956.
Hence the proposed resolutions are put for your consideration and approval.
Besides the appointees themselves, Sh. Sandeep Jindal, Chairman and Managing Director, Sh. Aman Jindal and Sh. Sahil Jindal, Wholetime Directors of the company being the relatives of the appointees are interested in the resolution.
Item No. 11
Sh. Sandeep Jindal, was appointed as Managing Director w.e.f. 1st October, 2010 for a period of 3 years at a monthly remuneration of Rs.2,50,000/-. Accordingly, the term of his office will expires on 30th September, 2013. The Board of Directors on the recommendation and approval of the remuneration committee of the Board of Directors has approved the
NOTES FOR THE MEMBER'S ATTENTION
3
re-appointment of Sh. Sandeep Jindal for a further period of 3 years w.e.f.1st October, 2013 at a monthly remuneration of Rs.2,50,000/- in accordance with provisions of the Companies Act, 1956 subject to the approval of the members of the company. As required by provisions contained in Schedule XIII of the Companies Act, 1956 the additional information is as under:-
1. General information
i) Nature of industry : Textile
ii) Date of commencement of commercial production :17.05.1999
iii) Financial performance of the company: The turnover of the company is Rs. 296.61 crores and Profit after tax is Rs.4.41 crores for the year ending 31.03.2013.
iv) Export performance: The Company has achieved direct export turnover of Rs.10.50 crores for the year ending 31.03.2013.
v) Foreign collaboration & investment: There is no foreign collabration in the company. Foreign Institutional Investors (FIIs) are holding 0.83% in the share capital as on 31.03.2013.
2. Information about the Appointee
i) Background details: Sh. Sandeep Jindal is the promoter director of the company. He is a dynamic commerce graduate of 36 years. He belongs to a reputed industrialist family of this region.
ii) Past remuneration: Rs. 2,50,000/- per month.
iii) Recognition or awards : NIL
iv) Job profile & his suitability: He is looking after the day to day affairs of the company He has business acumen and thus is suitable for this designation. He has been instrumental in devising company's diversification strategy and also looking at adding the value added textile products to the product portfolio of company. With the same view, the company he has set up techincal textile project through its 100% subsidiaries.
v) Remuneration proposed: Rs. 2,50,000/- per month inclusive of perks, if any.
vi) Comparative remuneration: The proposed remuneration is in line with the remuneration prevailing in the Industry.
vii) Relationship with the managerial personnel: He being promoter Director is the relative of the Wholetime Directors of the company.
3. Other information:
i) Reasons of loss or inadequate profits: The Company proposes to give remuneration as minimum remuneration. The company is a profit making company. The Company has adequate profits as far as the total remuneration is concerned as the maximum permissible limit is 10% to all the managerial personnel together.
ii) Steps taken/ to be taken for improvement: The company is successfully running 52272 spindles at its 100% capacity. Further, the 100% subsidiaries of the company namely Jindal Medicot Ltd & Jindal Specialty Textiles Ltd has set up their technical textiles project at Himahcal Pradesh and these projects has commenced its production.
iii) Expected increase in the productivity and profit in measurable terms: Since the company successfully running its 52272 spindles, the company estimates around 50 to 60% increase in the revenues and profits.
4. Disclosure:
The remuneration payable to Sh. Sandeep Jindal is as detailed in the resolution.
These details may also be treated as the abstract of the terms and conditions for the appointment of the Managing Director in compliance of section 302 (1) of the companies act, 1956.
Hence the proposed resolution is put for your consideration and approval.
Besides the appointee himself, Sh. Yash Paul Jindal, Sh. Ramesh Jindal, Sh. Rajinder Jindal, Sh. Aman Jindal and Sh. Sahil Jindal being the relatives of the appointee are interested in the resolution.
Place: LudhianathDate: 14 August, 2013
By order of the BoardFor Jindal Cotex Limited
(Sandeep Jindal)Chairman and Managing Director
4
Information pursuant to Corporate Governance Clause of the Listing Agreement(s) regarding the Directors seeking appointment/re-appointment in the Annual General Meeting
Aman Jindal
25.07.1988
25.10.2010
3 years of experience in corporate finance and development strategy.
Commerce Graduate & Master of science in International Business & Management from Manchester Business School, U.K
-Jindal Medicot Limited-Jindal Specialty Textiles Limited -Himachal Textile Park Limited -Jindal Holding and Investments Limited-Jindal Infrabiz Limited-Jindal Metalex Limited-Leader Cycles Limited-Jindal International FZE
Nil
845640
Related to Sh. Sandeep Jindal, Sh. Rajinder Jindal, Sh. Yash Paul Jindal, Sh. Ramesh Jindal and Sh. Sahil Jindal
Name of the Director
Date of Birth
Date of Appointment
Expertise in specific functional area
Qualification
Directorship of other companies
Chairmanships/Memberships of Committees of other companies
Number of shares held
Relationship with other Directors
Sahil Jindal
24.12.1988
25.10.2010
3 years of experience in marketing management.
Graduate in Business Administration
-Jindal Medicot Limited -Jindal Specialty Textiles Limited -Himachal Textile Park Limited -Jindal Holding and Investments Limited -Jindal Infrabiz Limited -Jindal Metalex Limited -Leader Cycles Limited -Jindal International FZE
Nil
810000
Related to Sh. Sandeep Jindal, Sh. Rajinder Jindal, Sh. Yash Paul Jindal, Sh. Ramesh Jindal and Sh. Aman Jindal
Vinay Shrivastav
01.01.1956
25.10.2010
28 years of experience in profession of Tax consultancy and Auditing.
Chartered Accountants
Nil
Nil
Nil
Not related to any Director
Satish Kumar Gupta
01.04.1952
25.10.2010
29 years of experience in the field of Tax Audit, Company Law & Labour Law matters and also Central Excise.
Chartered Accountants
Nil
Nil
Nil
Not related to any Director
Yash Paul Jindal
23.09.1955
10.12.1998
35 years of experience in various Business & Industries.
Graduate in Arts
-Jindal Cycles Private Limited -Jindal Medicot Limited -Jindal Specialty Textiles Limited -Himachal Textile Park Limited -Jindal Holdings and Investment Limited -Jindal Infrabiz Limited -Jindal Metalex Limited -Leader Cycles Limited
Nil
2711918
Related to Sh. Rajinder Jindal, Sh. Ramesh Jindal, Sh. Sandeep Jindal, Sh. Aman Jindal, and Sh. Sahil Jindal
5
Information pursuant to Corporate Governance Clause of the Listing Agreement(s) regarding the Directors seeking appointment/re-appointment in the Annual General Meeting
Name of the Director
Date of Birth
Date of Appointment
Expertise in specific functional area
Qualification
Directorship of other companies
Chairmanships/Memberships of Committees of other companies
Number of shares held
Relationship with other Directors
Rajinder Jindal
27.08.1960
10.12.1998
31 years of experience in various Business & Industries.
Science Graduate
-Jindal Cycles Private Limited -Jindal Medicot Limited -Jindal Specialty Textiles Limited -Himachal Textile Park Limited -Jindal Holding and Investments Limited -Jindal Infrabiz Limited -Jindal Metalex Limited -Leader Cycles Limited
Nil
2830926
Related to Sh. Yash Paul Jindal, Sh. Ramesh Jindal, Sh. Sandeep Jindal, Sh. Aman Jindal, and Sh. Sahil Jindal
Ramesh Jindal
23.05.1958
30.09.2000
35 years of experience in the trading and manufacturing of cycle parts.
Commerce Graduate
-Jindal Cycles Private Limited -Jindal Medicot Limited -Jindal Specialty Textiles Limited -Himachal Textile Park Limited -Jindal Holding and Investments Limited -Jindal Infrabiz Limited -Jindal Metalex Limited -Leader Cycles Limited
Nil
2886008
Related to Sh. Sandeep Jindal, Sh. Rajinder Jindal, Sh. Yash Paul Jindal, Sh. Aman Jindal, and Sh. Sahil Jindal
Sandeep Jindal
02.03.1977
18.02.1998
14 years of experience in Business & Industries.
Commerce Graduate
-Jindal Medicot Limited -Jindal Specialty Textiles Limited -Himachal Textile Park Limited -Jindal Holdings and Investment Limited -Jindal Infrabiz Limited -Jindal Metalex Limited -Jindal Info Media Private Limited -Jindal International FZE
Nil
1312998
Related to Sh. Ramesh Jindal, Sh. Rajinder Jindal, Sh. Yash Paul Jindal, Sh. Aman Jindal, and Sh. Sahil Jindal
Rajesh Sharma
23.11.1973
23.11.2012
18 Years of experience in the Textile and Steel Industries.
Chartered Accountants, Company Secretary and Cost Accountants
Vallabh Tinplate Private Limited
Nil
Nil
Not related to any Director
6
JINDAL COTEX LIMITEDREGISTERED OFFICE: V.P.O. JUGIANA, G.T. ROAD, LUDHIANA – 141 420
ATTENDANCE SLIP
Ref. Folio ________________________ DP ID* _____________________________
No. of shares held _______________________ Client ID ____________________________
Name and Address of Shareholders: _____________________________________________________________________________________________
_____________________________________________________________________________________________
th thI/We hereby record my /our presence at 16 Annual General Meeting of the Company held on Monday, 30 September, 2013 at 10.00 A.M. at its Registered Office at V.P.O. Jugiana, G.T. Road, Ludhiana – 141 420.
Name of the Shareholder/Proxy Signature of the Shareholder/Proxy(In Block Letter)
*Applicable for shareholders holding shares in Electronic form.Note: Please fill the attendance slip and hand it over at the entrance of meeting venue. Joint shareholders may obtain additional attendance slip on request.Shareholder/Proxy desiring to attend the meeting should bring his copy of the Annual Report at the Annual General Meeting.
JINDAL COTEX LIMITEDREGISTERED OFFICE: V.P.O. JUGIANA, G.T. ROAD, LUDHIANA – 141 420
PROXY
Ref. Folio ________________________ DP ID* _____________________________
No. of shares held _______________________ Client ID ____________________________
I/We _______________________________________________of ______________________________________
In the district of _______________________________________ being a member(s) of the company hereby appoint
_________________________________________________of _________________________________________
in the district of __________________________or failing him/her _______________________________________
of ________________________________________ in the district of _____________________________________
thas my/our proxy to attend and vote for me/us on my/our behalf at the 16 Annual General Meeting of the Company to be thheld on Monday, 30 September, 2013 at 10.00 A.M. and at any adjournment thereof.
Signed this ___________ day of _________________ 2013. Signature ----------------------------------
Note:1) The proxy in order to be effective should be duly stamped, completed and signed and must be deposited at the
Registered Office of the Company not less than 48 hours before the time for holding the aforesaid Meeting.
2) Those Members who have more than one folios may use photocopy of this Attendance Slip/Proxy.
Affix Revenue
Stamp
7
Jindal Cotex LimitedAnnual Report 2012-13
CONTENTS
Board of Directors
Management Discussion & Analysis Report
Director's Report
Corporate Governance Report
Auditor's Report
Balance Sheet
Profit & Loss Account
Cash Flow Statement
Significant Accounting Policies
Notes on Financial Statements
Consolidated Financial Statements
Statement regarding subsidiary companies pursuant to section 212 of the Companies Act, 1956
Page No.
1
2
4
7
13
16
17
18
19
21
35
54
Jindal Cotex Limited
Mr. Sandeep Jindal Chairman and Managing DirectorMr. Yash Paul JindalMr. Ramesh JindalMr. Rajinder JindalMr. Aman JindalMr. Sahil JindalMr. Rajesh SharmaMr. Nirmal Kumar JainMr. Madan Lal AroraMr. Vinay ShrivastavMr. Satish Kumar GuptaMr. Naresh Chand Bansal
A.G.M.-ACCOUNTS REGISTERED & CORPORATE OFFICEMr. Anoop Kumar AND WORKS
VPO Jugiana, G.T. Road,Ludhiana 141 420Phones: (0161) 2511840 – 42
COMPANY SECRETARY Fax: (0161) 2511843Mr. Anil Kumar Malhan Email: cs@jindalcotex.com
REGISTRAR & SHARE TRANSFER AGENTS WIND MILLBigshare Services Private Limited, J-289, Village Pithla,E/2, Ansa Industrial Estate, Distt. Jaisalmer,Saki Vihar Road, RajsthanSakinaka Andheri (E), Mumbai – 72Phones: (022) 28470652, (022) 40430200Fax: (022) 28475207, UNITSEmail ID: info@bigshareonline.com Bija, Tehsil Khana,
Unit – II, Village Mandiala Kalan,AUDITORS Distt. Ludhiana – 141 401M/s Aggarwal Garg & Co., Phone (01628) 264842Chartered Accountants, 638/30 & 31, Thaper Market,Industrial Area B, Ludhiana – 141 003 BANKERS
Oriental Bank of CommerceState Bank of IndiaAllahabad BankCorporation Bank Punjab & Sind BankBank of BarodaPunjab National BankCentral Bank of IndiaThe Catholic Syrian Bank Ltd.
BOARD OF DIRECTORS
1
Annual Report 2012-13
The Management discussion and Analysis Report, is a in textile manufacturing activities. Exports account for
reflection of the current state of business of the about 17% of India's total foreign exchange earnings.
company. It also deals with opportunities and ndThe Indian textile Industry, 2 largest in the World and challenges faced by your company and future outlook.
continued to its growth journey due to extension of the Business Review & Outlook Textile Up-gradation Fund scheme.
The growth in global economy during the year 2012-13
remained affected due to impact of high crude oil
prices and other commodity prices. Indian GDP
growth decline for the second year in succession due
to worst performance in all the sectors, specially in the
manufacturing sector.
However, the Indian Textile Industry is on a recovery
due to an improved US economy, a recovering
demand from the European Union and favourable raw
material prices. Further, efforts made by the Reserve
Bank of India to stimulate the economy have
marginally brought down the interest rates but these
are still painfully high. It is expected that after inflation
eases, Reserve Bank of India will consider favourably
relaxing the interest rates, which will help in recovering
the economy.
The outlook of the Textile Industry is appearing good
as we expect and hope that inflation will come down
and will be under control and input prices revert to a
more moderate level, the domestic market is expected
to continue to deliver a healthy growth. The company
is however confident of sustained growth through a
series of initiatives in the area of product development,
technological up gradation and strengthening of
distribution network. The Management of our
company is very optimistic of the textile industry and
taking a long term view of the Industry and hope to
increase turnover and margins from the current
position.
Industry Structure and Development
The Textile Industry in India plays a vital role in the
overall economy. The Indian Textile Industry is one of
the largest in the world with a massive raw material
and manufacturing base. It contributes 14% of the
industrial production and 4% to the GDP of the country.
The Textile Industry accounts for as large as 21% of
the total employment generated in the economy.
Approximately 35 million people are directly employed
MANAGEMENT DISCUSSION & ANALYSIS REPORT
2
Jindal Cotex Limited
Particulars Year ended March 31, 2012Year ended March 31, 2013
Qty in MT
4043.64
509.60
2815.10
7720.67
13049.10
1478.64
29616.75
44.59
44.59
29661.34
13.63
1.72
9.49
26.03
43.99
4.99
99.85
0.15
0.15
100.00
1876
315
1690
4542
2891
524
11838
1221
1221
13059
Sales Amount (Rs. in lacs)
As % to Total Sales
Textiles
Acrylic Yarn
Polyester Yarn
Blended Yarns
100% Cotton Yarn
Knitted Cloth
Fibre and others
Total (A)
Wind Mill
Elect. Sales
Total (B)
Total (A+B)
Qty in MT
Sales Amount (Rs. in lacs)
As % to Total Sales
5647.15
2826.67
2357.34
3779.99
9447.91
1394.09
25453.15
55.60
55.60
25508.75
22.14
11.08
9.24
14.82
37.04
5.47
99.78
0.22
0.22
100
2712
2250
1601
2305
2101
1677
12646
1523
1523
14169
Financial Analysis
(Rs. in Lacs)
Particulars
Sales
Other Income
Total Income
2012-13
29661.34
2415.89
32077.23
%
92.47
7.53
100
Revenue Break – up:
2011-12
25508.75
1941.38
27450.13
%
92.93
7.07
100
The net turnover has been increased to Rs. 29661.34 lacs in the year 2012 – 13 as against Rs. 25508.75 lacs in the year 2011 – 12, showing thereby an increase of 16.28%.
(Rs. in Lacs)
Particulars
Profit/Losses before depreciation, interest and tax
Interest
Profit/Losses before Depreciation
Depreciation
Profit/Losses before tax
Tax
Profit/Losses after Tax
2012-13
4046.94
2489.55
1557.39
1116.26
441.13
–
441.13
% of turnover
13.64
8.39
5.25
3.76
1.49
–
1.49
2011-12 % of turnover
Profitability/Losses
5.57
7.66
-2.09
4.28
-6.37
0.10
-6.47
1421.13
1954.87
(533.74)
1092.44
(1626.18)
24.71
(1650.89)
Financial Analysis and Review of operations
(On standalone basis):
Product wise performance
3
Annual Report 2012-13
Depreciation on fixed assets is 3.76% of total sales will improve in the near future. during the current year and 4.28 % in the previous
We are making all efforts to cope up with all the year. Interest/Financial expenses increased from Rs.
challenges through continuous process of cost 1954.87 lacs for Financial Year 2011-12 to Rs.
reduction and with continued focus on delivering 2489.55 lacs for Financial Year 2012-13. Increase in
quality products to our customers as committed.interest cost due to increase in the working capital loans and interest rates on bank borrowings. There is Adequacy of Internal Control Systemsno term loan availed for the expansion project. No
The Company has a proper and adequate internal dividend has been proposed by the company since the control system to ensure that all assets are company is going for expansion projects in the coming safeguarded and protected against loss from year.unauthorized use or disposition and those
Resource Utilization transactions are authorized, recorded and reported correctly. Regular internal audit and checks are carried
a) Fixed Assets out to check the existence of adequate system. The
The gross fixed assets as at 31st March, 2013 are Rs. management also reviews the internal control systems 15649.31 lacs as compared to Rs. 15517.99 lacs in and procedures to ensure its application. The internal the previous year. The net fixed assets (including work control is designed to ensure that the financial and – in – progress & capital advances) as on 31st March, other records are reliable for preparing financial 2013 are Rs.14270.05 lacs as compared to Rs. statements. The Company periodically reviews the 15274.01 lacs in the previous year. risk management framework to maintain its
contemporariness so as to effectively address the b) Investments
emerging challenges in a dynamic business environment.The Company has made investments in its
subsidiaries to the tune of Rs. 8283.78 lacs by way of Material Development in terms of Human
equity capital and Rs. 17708.34 lacs by way of Loans Resourcesst& Advances as on 31 March, 2013.Human Resources are considered to be a form of
c) Current Assets Capital and Wealth of the Company. It has been the focus of the management to improve and expand the Sundry debtors of the Company are Rs. 7947.99 lacs contribution of its human resources towards in the year 2012-13 as against Rs. 2688.32 lacs in the attainment of organizational goals and values.previous year. Inventory level is at Rs. 1894.69 lacs in
the year 2012-13 as against Rs. 2196.36 lacs in the The Company keeps the objective of believing in
previous year. Cash and cash equivalents decreased empowerment and delegation with a balancing of
from Rs. 372.00 lacs in the year 2011-12 to Rs. 339.88 authority and responsibility in our organization where
lacs in the year 2012-13.talent can bloom. During the year, the company has employed 1040 workers.Risk and Concerns
Cautionary StatementGovernment policies are critical to the success of the Textile Industry. Increase in price of raw materials has
Statements made herein on Management Discussion become hindrance in the long term sustainability of the
& Analysis, describing the Company's expectations or textile industry and which need to be regularly
predictions are “forward-looking statements”, addressed.
considering the applicable laws and regulations. Theses statements are based on certain assumptions Another issue is depreciation of Indian rupee against and expectation of future events. The actual results US dollar, which has serious impact on textile industry.may differ from those expected or predicted. Prime
The availability of good quality power at reasonable factors that may make a difference to the company's prices is another critical issue for sustainability of the performance include market conditions, input cost, textile industry. The cost of power has been Government policies/regulations, economic continuously increasing, adding to the input cost conditions, and other incidental factors.pressure in the industry. We hope that power situation
4
Jindal Cotex Limited
DIRECTORS' REPORT
1. Financial Results & Performance Review
(Rs. In Lacs)
2012-13
32077.23
4046.94
2489.55
1557.39
1116.26
441.13
–
441.13
–
441.13
--
--
441.13
Particulars
Turnover & Other Income
Profit Before Depreciation, Interest, & Tax (PBDIT)
Interest and Financial Expenses
Profit Before Depreciation & Tax (PBDT)
Depreciation
Profit Before Tax (PBT)
Less– Provision for Tax
(Including Deferred Tax)
Profit for the year (PAT)
Add–Surplus brought forward From previous Year
Profit available for Appropriations
Appropriations
Proposed Dividend
Bonus Shares Issued
Surplus Carried to Balance Sheet
Dear Members,
The Directors of your Company have pleasure in thpresenting their 16 Annual Report on the affairs of the
company together with Audited Annual Accounts for the financial year ended 31st March, 2013.
2011-12
27450.13
1421.13
1954.87
(533.74)
1092.44
(1626.18)
24.71
(1650.89)
2565.38
914.49
--
--
914.49
During the year under review, your company achieved total revenue of Rs. 320.77 Crores as against Rs. 274.50 Crores in the previous year. The company has earned a net profit after tax of Rs. 4.41 crores as against a loss of Rs. 16.51 Crores in the previous year. Your company has been able to achieve this result by proper utilization of the resources available to the company, despite there are adverse market conditions like, lack of demand by consumers, high inflation rate, steep competition in profit margin of products, increase in cost of production due to high wages and electricity rate etc.
2. Dividend
Your directors do not recommend any dividend for the year under review.
3. Management Discussion & Analysis Report
The Management Discussion and Analysis of financial conditions and results of operation of the Company for the year under review is attached to this Report.
4. Subsidiaries
The consolidated ?nancial statements presented by the Company include financial information of its subsidiaries prepared in compliance with applicable Accounting Standards are attached to and form part of the Annual Report. The Ministry of Corporate Affairs, Government of India has granted exemption under Section 212(8) of the
Companies Act, 1956, from attaching the balance sheet, pro?t and loss account and other documents of the subsidiary companies to the balance sheet of the holding company. Annual accounts of the subsidiary companies and the related detailed information will be made available to the shareholders of the holding and subsidiary companies' seeking such information at any point of time.
Further, the annual accounts of the subsidiary companies will also be kept for inspection by any shareholders at the head office i.e. Registered Office of the holding company and that of the subsidiary companies concerned.
The company has the following subsidiaries:-
JINDAL MEDICOT LTD.
This 100% subsidiary of our company has set up the technical textile project at Village Thathal, Tehsil Amb, District Una, Himachal Pradesh for manufacturing of products like cotton crepe bandage, absorbent cotton, cotton balls, pads, dental rolls etc. The company has started its commercial production during the year. The company has achieved revenue from operations and trading sales of Rs. 131.07 Crores.
JINDAL SPECIALTY TEXTILES LTD.
This 100% subsidiary of our company manufacturing products like frontlit banner, fabric, general tarapuling, truck siders etc.. The company has set up its project at Thathal, Tehsil Amb, District Una, Himachal Pradesh in a land measuring approximately 400 Kanals. The company has started its partial production during the year. The company has achieved revenue from operations and trading sales of Rs.101.35 Crores.
HIMACHAL TEXTILE PARK LTD.
Himachal Textile Park Limited the another subsidiary of your company has set up the Textile Park in the state Himachal Pradesh to provide land and necessary infrastructure facilities to the participant units. Jindal Medicot Limited and Jindal Specialty Textiles Limited have already set up their technical textile projects in this Textile Park. More, Units are coming in the near future to set up their technical textile projects.
JINDAL METALEX LTD.
This 100% subsidiary of the company was incorporated to engage in the business of manufacturing and trading of all kinds of metals including iron & steel etc. The company has not yet started its operations.
JINDAL INFRABIZ LTD.
This 100% subsidiary of the company was incorporated to engage in the business of promotion and development of Industrial Parks, Textile Parks and Special Economic Zones etc..The company has not yet started its operations.
JINDAL INTERNATIONAL FZE
This is 100% subsidiary of our company set up in free zone in UAE to expand the presence of company globally. The company is engaged in the general trading activities. During the year under review, the company has achieved revenue of USD 26,149,975 from its operations.
company who are eligible for appointment as statutory auditors of the company.
The Company has received the certificate from M/s Raj Gupta & Co., Chartered Accountants, confirming that their appointment, if made, will be within the limits prescribed under Section 224(1B) of the Companies Act, 1956 and that they are not disqualified for such an appointment, within the meaning of sub-section (3) and (4) of Section 226 of the Companies Act, 1956.
9. Cost Audit
As per the requirement of the Central Government and pursuant to the provisions of Section 233B of the Companies Act, 1956, the audit of the cost accountants relating to the product 'Textiles' is required to be carried out every year. The company has appointed Cost Auditors viz, M/s. Gurvinder Chopra & Co., Cost Accountants, Chopra Building, Mall Godown Road, Dhuri, Punjab to audit the cost accounts for the financial year 2012-13. The Cost Audit Report for the
styear ended 31 March, 2013 will be submitted with Ministry of Corporate Affairs, Government of India.
10. Energy Conservation, Technology Absorption & Foreign Exchange
As regard disclosure under Section 217(1)(e) of the Companies Act,1956 read with Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 a statement showing particulars of conservation of energy, technology absorption and foreign exchange earnings and outgo is annexed hereto and forms part of this report.
11. Fixed Deposits
During the year under review, your company had accepted stfixed deposits of Rs. 16.19 crores as on 31 March, 2013
under section 58A, within the limits prescribed under the Companies Act, 1956.
12. Particulars of Employees
There are no employees covered under the provisions of section 217 (2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975, as amended.
13. Industrial Relations
Industrial relations remained cordial throughout the year and the Directors express their appreciation towards the workmen for their co-operation and hope for continued cordial relations in the years to come.
14. Acknowledgement
Your Directors would like to express their grateful appreciation for the assistance and co-operation received from Bankers, Government Departments, Shareholders and other Business Associates for their continued and valuable co-operation & support extended to the company.
We take this opportunity to place on record our warm appreciation for the employees at all levels for their dedicated services and valuable contributions towards the growth of the Company.
Place: Ludhiana
thDate: 14 August, 2013
By order of the BoardFor Jindal Cotex Limited
(Sandeep Jindal)Chairman and Managing Director
Annual Report 2012-13
5
5. Directors
In accordance with the provisions of the Companies Act, 1956 and Articles of Association of the company, Sh. Aman Jindal, Sh. Sahil Jindal Executive Directors and Sh. Satish Kumar Gupta, Sh. Vinay Shrivastav, Independent Directors of the company, retire by rotation at the ensuing annual general meeting and are being eligible, offer themselves for re-appointment.
During the year under review, Sh. Vijesh Gupta, who was associated with the company as an Independent director
rdsince, July, 2008 ceased to be director with effect from 23 November, 2012. The Board places on record its deep sense of appreciation of the invaluable contribution made by him to the growth of the company during his tenure as a Director of the company.
The Board of Directors has appointed Sh. Rajesh Sharma as Additional & Independent Director of the company with effect
rdfrom 23 November, 2012. Sh. Rajesh Sharma is a member of ICAI, ICWI & ICSI He has an overall experience of eighteen years both in Textiles and Steel Industries. He will hold office till the date of ensuing annual general meeting and the company has received notice from a member proposing his candidature for being appointed as Director of the company.
6. Corporate Governance
As required under clause 49 of the Listing Agreement with the Stock Exchanges, the report on Management Discussion and Analysis, Corporate Governance as well as the Auditor's Certificate regarding compliance of conditions of Corporate Governance, form part of the Annual Report is annexed to the report.
7. Directors' Responsibility Statement
Pursuant to the provisions of Section 217(2AA) of the Companies (Amendment) Act, 2000, with respect to Directors responsibility statement, the Directors hereby confirm that:-
a) In the preparation of Annual Accounts the applicable Accounting Standards have been followed and that there are no material departures;
b) They have selected such Accounting Policies and applied them consistently and made prudent judgments & estimates that are reasonable so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the loss of the company as on date;
c) They have taken proper & sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956, for safeguarding the assets of the Company and for preventing & detecting the fraud and other irregularities;
d) The Annual Accounts have been prepared on 'going concern basis'.
8. Auditors
M/s Aggarwal Garg & Co., statutory auditors have shown their unwillingness to continue as auditors of the company. In their place M/s Raj Gupta & Co., Chartered Accountants are proposed to be appointed as statutory auditors of the
6
Jindal Cotex Limited
PARTICULARS
POWER & FUEL CONSUMPTION
a) Electricity purchased
Units
Amount
Rate per unit
b) Own generation
Through Diesel Generator
Units per litre
Cost of Diesel/LDO
Rate per unit
CONSUMPTION PER UNIT OF PRODUCTION
Synthetic and Cotton Yarn
Particulars as required under section 217(1)(e) read with Companies (Disclosure of Particulars in Report of Board of
Directors) Rules, 1988 and forming part of the Directors' Report for the year ended 31st March, 2013:-
UNIT
KWH in lacs
Rs. In lacs
Rs. Per unit
KWH In lacs
Units
Rs. In lacs
Rs. Per unit
KWH/Kg
I. CONSERVATION OF ENERGY FORM A
2012-13
257.32
1699.61
6.61
3.63
3.46
46.55
12.82
3.21
2011-12
208.00
1259.22
5.94
2.88
3.22
37.47
13.01
2.41
A
B
II. TECHNOLOGY ABSORPTIONEfforts made in Technology Absorption are furnished as per Form B of the Annexure to the Rules are as under:-A) RESEARCH AND DEVELOPMENT (R&D)
a) Specific areas in which Research & Development is carried out by the companyResearch & Development is carried out for improvement in the production process, appraisal of alternative raw materials and quality of existing products.
b) Benefits derived as a result of above R&D The company has been continuously improving the quality of its existing products and also been able to reduce the cost of production.
c) Future Plan of Action 1 Increase in Productivity 2 Reduction in operational costs
d) Expenditure on R&D : NilB) TECHNOLOGY ABSORPTION, ADAPTION AND INNOVATION
a) Efforts made The company is making efforts for adaption of latest technology in all its units, optimization of processes and efficient utilization of inputs on on-going basis.
b) Particulars of technology imported in the last five years a) Technology Imported Nilb) Year of Import N.A. c) Has the technology been fully absorbed N.A.
ANNEXURE TO THE DIRECTORS' REPORT
III. FOREIGN EXCHANGE EARNINGS AND OUTGO (Rs. In lacs)
PARTICULARS
Foreign Exchange Earning
?FOB Value of Exports
?Interest and Dividend
Foreign Exchange Outgo
?Raw Material
?Capital Goods and Advances
?Stores & Spares
?Foreign Travelling Expenses
?Interest on Foreign currency loans
?GDR Issue Expenses
S. No.
A)
B)
2012-13
1049.53
1410.21
91.49
4.07
19.23
0.00
139.69
0.00
2011-12
745.10
15.45
0.00
370.75
7.56
42.70
153.85
1.76
Annual Report 2012-13
7
1. Company's Philosophy on the Code of Governance
The company aims at not only its own growth but also maximization of benefits to the shareholders, employees, customers, Government and also the general public at large. For this purpose the company continuously strives to improve its level of overall efficiency through good corporate governance which, envisages transparency, professionalism and accountability in all its operations.
2. Board of Directors
a) Composition
The Board of Directors of your company has an optimum combination of executive and non executive directors having rich knowledge and experience in Industry & other sectors for providing strategic guidance and direction to the company.
Presently, the company has twelve Directors on its Board with an Executive Chairman. The number of Non-Executive Directors is six and all of them being independent Directors. The Executive Directors are expert
in handling diverse nature of business of the Company. The Independent Directors are professionals in their field and posses background of financial, legal and secretarial fields. The non-executive independent Directors bring a wide range of expertise and experience to the Board.
The composition of the Board is in consonance with Clause 49 of the Listing Agreement. During the year, there was no pecuniary relationship or business transaction by the company with any non-executive director.
b) Meetings of Board and its Committees
Meetings of Board and its committee were held as and when required. During the year, under review, the Board of Directors met 9 (nine) times on 30.05.2012, 14.08.2012, 27.09.2012, 28.09.2012, 29.09.2012, 12.11.2012, 23.11.2012, 21.12.2012 and 14.02.2013.
The names, categories of the Directors on the Board, their attendance at the Board Meeting during the year and the last Annual General Meeting, and also the number of directorships and Committee membership held by them in other companies are as per details given below:-
No. of directorship
of other Indian public
limited companies
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
No. of chairmanship/membership of committees in
other companies
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
No
No
No
No
No
No
6
7
7
7
7
7
2
1
1
Nil
Nil
Nil
Nil
Nil
Sh. Sandeep Jindal
Sh. Yash Paul Jindal
Sh. Ramesh Jindal
Sh. Rajinder Jindal
Sh. Aman Jindal
Sh. Sahil Jindal
Sh. Madan Lal Arora
Sh. Nirmal Kumar Jain
Sh. Vipan Mittal*
Sh. Vijesh Gupta**
Sh. Satish Kumar Gupta
Sh. Vinay Shrivastav
Sh. Naresh Chand Bansal#
Sh. Rajesh Sharma##
9
9
9
9
9
9
6
6
Nil
Nil
5
4
6
2
Name of Directors Designation
Chairman and Mg. Director
Whole time Director
Whole time Director
Whole time Director
Whole time Director
Whole time Director
Director
Director
Director
Director
Director
Director
Category
Non-Executive Independent
Promoter, Executive
Promoter, Executive
Promoter, Executive
Promoter, Executive
Promoter, Executive
Promoter, Executive
No. of Board
Meeting Attended
Attendance at last AGM
Non-Executive Independent
Non-Executive Independent
Non-Executive Independent
Non-Executive Independent
Non-Executive Independent
Director
Director
Non-Executive Independent
Non-Executive Independent
* Ceased as Director w.e.f. 14th August, 2012 ** Ceased as Director w.e.f. 23rd November, 2012# Appointed as Additional Director w.e.f. 14th August, 2012 ## Appointed as Additional Director w.e.f. 23rd November, 2012Note: Sh. Yash Paul Jindal, Sh. Ramesh Jindal, Sh. Rajinder Jindal, Sh, Sandeep Jindal, Sh. Aman Jindal and Sh. Sahil Jindal are related to each other.
CORPORATE GOVERNANCE REPORT
8
Jindal Cotex Limited
c) Code of Conduct:
The Company has laid down a Code of Conduct for all Board members and senior management of the company. The code has been circulated to all the members of the Board and senior management and they have affirmed compliance with the code of conduct. A declaration to this effect signed by the Managing Director (CEO) forms part of the report.
d) Promoters/Directors Shareholding as on 31st March, 2013 :-
Sh. Yash Paul Jindal
Sh. Sandeep Jindal
Sh. Ramesh Jindal
Sh. Rajinder Jindal
Sh. Aman Jindal
Sh. Sahil Jindal
2711918
1312998
2886008
2830926
845640
810000
6.03
2.92
6.41
6.29
1.88
1.80
Name of Directors No. ofShares
% of total EquityCapital
* None of other director holds any share in the equity
share capital of the company.
3. Audit Committee
During the year under review, the Audit Committee was reconstituted consequent to the resignation given by Sh. Vijesh Gupta, Director of the company. The reconstituted Audited Committee consists of the following Directors namely Sh. Satish Kumar Gupta, Chairman, Sh. Madan Lal Arora and Sh. Nirmal Kumar Jain. All members of audit committee have wide exposure and posses sound knowledge in the area of accounts, finance, audit, internal control etc. Sh. Satish Kumar Gupta, Chairman of the committee is a Chartered Accountant. Mr. Anil Kumar, Company Secretary is the secretary and convener of the meeting.
The terms of reference of the Audit Committee cover all matters as are specified in clause 49 of the listing agreement and Section 292A of the Companies Act, 1956. During the year 2012-13, the Audit Committee met on four occasions. The minutes of Audit Committee meetings are placed before the Board of Directors in the subsequent board meetings.
The attendance of the members of the audit committee is mentioned below:-
Name of Director Category No. of Meetiheld & attended
ngs
Sh. Vijesh Gupta* 1
Sh. Madan Lal Arora
Sh. Nirmal Kumar Jain
Non Executive and Independent Director
Non Executive and Independent Director
Non Executive and Independent Director
4
4
Sh. Satish Kumar Gupta Non Executive and Independent Director
3
*Ceased as Director w.e.f. 23rd November, 2012
4. Remuneration Committee
During the year under review, the Remuneration Committee was reconstituted consequent to the resignation given by Sh. Vipan Kumar Mittal and Sh. Vijesh Gupta, Directors of the company. The reconstituted Remuneration Committee comprises of the following Directors namely Sh. Nirmal Kumar Jain, Sh. Vinay Shrivastav and Sh. Naresh Chand Bansal. Sh. Nirmal Kumar Jain is the Chairman of the Committee. There was no meeting of Remuneration Committee, during the year 2012-13.
The Remuneration Committee is vested with all necessary powers and authority to ensure appropriate disclosure on the Remuneration of the Directors and to deal with all elements of the Remuneration package of all the directors including but not restricted to the following:-
?To review, assess and recommend the appointment and remuneration of Managing and Whole time Directors.
?To review the remuneration package including the retirement benefits, payable to the Directors periodically and recommend suitable revision / increments, whenever required, to the Board of Directors.
Remuneration to Directors:
The company pays remuneration by way of salary to its Managing & Whole Time Directors within the limits approved by the shareholders and subject to overall ceiling stipulated in accordance with the provisions of Schedule XIII of the Companies Act, 1956. The remuneration paid or payable to the Directors for services rendered during 2012-13 is given as under:
Name of Directors Salary Perquisitesand
Allowances
Commission Total
Sh. Sandeep JindalSh. Yash Paul JindalSh. Rajinder JindalSh. Ramesh JindalSh. Aman JindalSh. Sahil Jindal
----
3.003.00
Total 6.00 6.00
------
----
3.003.00
------
- -
No remuneration has been paid to independent and non executive directors.
5. Shareholder/Investor's Grievances Committee
During the year under review, the Shareholders/ Investor's Grievance Committee was also reconstituted consequent to the resignation given by Sh. Vipan Kumar Mittal and Sh. Vijesh Gupta, Directors of the company. The reconstituted the Shareholders/ Investor's Grievance Committee comprises of the following Directors namely Sh. Madan Lal Arora, Sh. Nirmal Kumar Jain, Sh. Naresh Chand Bansal and Sh. Sandeep Jindal. Sh. Madan Lal Arora is the Chairman of
Annual Report 2012-13
9
the said Committee. Mr. Anil Kumar, Company Secretary is the compliance officer for this committee.
The Shareholders/Investor's Grievance Committee specifically looks into the shareholders/investor's complaints if any, on non-receipt of annual report, dividend payments etc. and also matters related to share transfer, issue of duplicate share certificate, dematerializations etc..
During the year, under review, the Shareholders/ Investor's Grievance Committee met on four occasions as under:-
Name of Director Category No. of Meetiheld & attended
ngs
4
-
-
4
2
2
Non Executive and Independent Director
Non Executive and Independent Director
Non Executive and Independent Director
Sh. Madan Lal Arora
Sh. Vijesh Gupta*
Sh. Vipan Kumar Mittal**
Sh. Sandeep Jindal
Sh. Nirmal Kumar Jain
Sh. Naresh Chand Bansal#
Executive Director
Non Executive and Independent Director
Non Executive and Independent Director
* Ceased as Director w.e.f. 23rd November, 2012** Ceased as Director w.e.f. 14th August, 2012# Appointed as Additional Director w.e.f. 14th August, 2012
6. Annual General Meetings
The details of the last three annual general meetings are given as follows:-
Date & time Year Venue
No. of Special
Resolution Passed
29.09.2012 at 09.30 A.M.
30.09.2011 at 10.00 A.M.
28.09.2010 at 10.00 A.M.
2011-12
2010-11
2009-10
NIL
3
2
Regd. Office:V.P.O. Jugiana, G.T. Road, Ludhiana
The company has not passed any resolution through postal ballot during the previous year. No special resolution requiring a postal ballot is being proposed for the ensuing Annual General Meeting.
7. Disclosures:
a. Subsidiaries Companies
i. The Audit Committee of the Company reviews the financial statements of subsidiary companies and in particular the project expenditure made by subsidiary companies.
ii. The minutes of Board meeting of subsidiary companies are periodically placed before the Board of the
company. The Board is periodically informed about all the significant transactions and arrangements entered into by the subsidiaries companies.
b. Related Party transaction
The details of Related Party transactions are given in Note No.30 of the Audited Accounts of the company for the Year ended 31.03.2013. There were no material transactions during the year 2012-13 that are prejudicial to the interest of the company.
c. Disclosure of Accounting Treatment
There is no deviation in following the treatments prescribed in any Accounting Standard in preparation of financial statements for the year 2012-13.
d. Detailed Management Discussion and analysis Report have been included in this Annual Report.
e. The company has complied with all the mandatory requirements of Clause 49 of the Listing Agreement relating to Corporate Governance. At present, the company has not adopted the non-mandatory requirements of clause 49 except constitution of remuneration committee.
8. Statutory Compliance, Penalties and Strictures
The Company has complied with statutory compliances and no penalty or stricture is imposed on the company by the Stock Exchanges or SEBI or any other statutory authority on any matter related to the capital markets during the last year.
9. Means of Communication:
a. The quarterly/annual results of the company have been forwarded to the Listed Stock Exchanges and also published in daily newspapers viz English Newspaper 'Financial Express'/'Economics Times' and Punjabi newspaper 'Desh Sewak'
b. The results of the company are also made available at the website of the company www.jindalcotex.com
c. The Company has posted information relating to its financial results on corporate filing and dissemination system at www.corpfiling.co.in
10. General Shareholders information:
a. 16th Annual General Meeting
thDate : 30 September, 2013
Time : 10.00 A.M.
Place : V.P.O. Jugiana, G.T. Road, Ludhiana
st stb. Financial Year : April 1 to March 31
c. Listed on Stock Exchanges : BSE Limited
Phiroze Jee Jee Bhoy Towers,
Dalal Street,
Mumbai - 400 001
National Stock Exchange of India Limited
Exchange Plaza,
Bandra Kurla Complex,
Bandra (East), Mumbai - 400 051
(Listing fee for the year 2013 - 14 has been paid to BSE Limited and National Stock Exchange of India Limited)
d. Stock Code
BSE : 533103
NSE : JINDCOT
e. ISIN No.
NSDL : INE904J01016
CDSL : INE904J01016
f. Market Price Data
The month wise highest and lowest and closing share prices of the company from vis - a - vis BSE Sensex during the year from April, 2012 to March, 2013 is given below:-
MonthHigh Low Closing %
change over last month's closing
High Low Closing % change
over last month's closing
Share Price of Jindal Cotex Ltd BSE Sensex
10
Jindal Cotex Limited
April, 2012
May, 2012
June, 2012
July, 2012
August, 2012
September, 2012
October, 2012
November, 2012
December, 2012
January, 2013
February, 2013
March, 2013
65.40
65.50
63.15
59.10
51.30
57.00
73.45
73.00
89.35
90.90
62.40
27.85
57.25
56.00
49.00
42.45
40.05
41.20
52.65
60.70
69.50
59.30
30.90
14.60
61.50
57.15
55.35
45.70
43.35
52.90
65.90
69.15
83.10
61.25
30.90
14.75
2.15
-7.07
-3.15
-17.43
-5.14
22.03
24.57
4.93
20.17
-26.29
-49.55
-52.27
17664.10
17432.33
17448.48
17631.19
17972.54
18869.94
19137.29
19372.70
19612.18
20203.66
19966.69
19754.66
17010.16
15809.71
15748.98
16598.48
17026.97
17250.80
18393.42
18255.69
19149.03
19508.93
18793.97
18568.43
17318.81
16218.53
17429.98
17236.18
17429.56
18762.74
18505.38
19339.90
19426.71
19894.98
18861.54
18835.77
-0.49
-6.35
7.47
-1.11
1.12
7.65
-1.37
4.51
0.45
2.41
-5.19
-0.14
Annual Report 2012-13
11
g. Share Transfer System:
?The company has appointed M/s. Bigshare Services Private Limited, RTA, E/2 Ansa Industrial Estate, Saki Vihar Road, Sakinaka Andheri (E), Mumbai - 72 as the Registrar and transfer agent for the Equity shares of the Company to provide services in both physical and electronic mode.
?The Shareholders/Investor's Grievance Committee deals with various matters relating to share transfer through transfer agent of the Company. As per the arrangement with Transfer Agents, the list of valid transfers prepared by them in respect of share transfer cases and objections, if any, is placed before the Shareholders/Investor's Grievance Committee of the company.
?Pursuant to clause 47(c) of the Listing agreement entered with the Stock Exchanges, certificate on half yearly basis, have been issued by Company Secretary in practice for due compliance of share transfer formalities by the Company.
No. of SharesNo. of
Shareholders% to total
Shareholders
No. of Shares
held
% total shares
held
Upto 50005001-1000010001-2000020001-3000030001-4000040001-5000050001-100000Above 100000
6595 100 45003140 100
552146125074453463
147
83.7149 6.9901 3.7908 1.12210.68230.51550.95532.2290
719886365947386360188853
162822159857463237
42556178
1.59960.81320.85850.41960.36180.35521.0293
94.5627
i. Shareholding Pattern as on 31/03/2013:
Category No. ofShares held
% to total paid up Share capital
Promoter and Promoter GroupForeign Institutions InvestorsBodies CorporateClearing MemberNRIGDRsPublic (Individual)TOTAL
13129549374990
9121312229575
7201113580000
849570345003140
29.170.83
20.270.510.16
30.1818.88
100
h. Distribution Schedule as on 31/03/2013
j. Dematerialization of Shares and Liquidity:
As on 31st March, 2013, 100% of the equity capital was in dematerialized form with NSDL and CDSL. The shares of the company are traded on BSE Limited and National Stock Exchange of India Limited and have good liquidity.
k. The company has issued 5,000,000 GDRs (Global Depository Receipts) representing 20000000 equity shares on 30.06.2010. These GDRs are listed on
Luxembourg Stock Exchange. As on 31.03.2013, GDRs 33,95,000 are still outstanding.
l. Plant Locations:-
i. VPO Jugiana, G. T. Road, Ludhiana (Punjab)
ii. Village Mandiala Kalan, Bija (Punjab)
iii. Wind Mill - J - 289, Village Pithla, Jaisalmer (Rajasthan)
Plant Location of subsidiaries:-
Jindal Medicot LimitedVPO Thathal, Tehsil Amb, District Una, Himachal Pradesh
Jindal Specialty Textiles LimitedVPO Thathal, Tehsil Amb, District Una, Himachal Pradesh
m. Corporate and Registered Office:
V.P.O. Jugiana, G.T. Road, Ludhiana - 141420 Tel. No. 0161 - 2511840/41/42, Fax No. 0161- 2511843 Email ID: cs@jindalcotex.com Website: www.jindalcotex.com
n. Registrar and Transfer Agent:
Bigshare Services Private Limited E/2 Ansa Industrial Estate, Saki Vihar Road, Sakinaka Andheri (E), Mumbai - 72, Fax: 022- 28475207, Tel. No. : 022-28470652, 022-40430200 Email :info@bigshareonline.com
o. Compliance Officer: Mr. Anil Kumar, Company Secretary Email ID: cs@jindalcotex.comd
DECLARATION OF CHAIRMAN AND MANAGING DIRECTOR
The Company has framed Code of Conduct for the members of the Board of Directors and the Senior Management Personnel of
the Company pursuant to Clause 49 of the Listing Agreement with Stock Exchanges to further strengthen corporate governance
practices of the Company.
All the members of the Board and Senior Management Personnel of the Company have affirmed due observance of the said Code
of Conduct during the year ended 31st March, 2013.
Date: 14th August, 2013 (Sandeep Jindal)
Place: Ludhiana Chairman and Managing Director
12
Jindal Cotex Limited
To
The Members of
Jindal Cotex Ltd
We have examined the compliance of the conditions of Corporate Governance by Jindal Cotex Limited for the year ended on 31st March, 2013 as stipulated in Clause 49 of the Listing Agreement of the said Company with Stock Exchanges.
The Compliance of conditions of Corporate Governance is the responsibility of the Management. Our examination was limited to review of the procedures and implementation thereof, adopted by the Company, for ensuring the compliance of the conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us and based on the representation made by the Directors and Management, we certify that the Company has complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreement.
We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the Management has conducted the affairs of the Company.
FOR AGGARWAL GARG & CO. Chartered Accountants
Firm Regn. No. : 004745N
(Pawan Kumar Garg) Partner
M. No. 083139Dated: 14th August, 2013Place: Ludhiana
AUDITORS' CERTIFICATE ON COMPLIANCE OF CORPORATE GOVERNANCE
UNDER CORPORATE GOVERNANCE CLAUSE OF THE LISTING AGREEMENT(S)
To financial statements give the information required by the Act in the manner so required and give a true and fair view The Members ofin conformity with the accounting principles generally Jindal Cotex Limited,accepted in India:
Report on the Financial Statements(a) In the case of the Balance Sheet, of the state of We have audited the accompanying financial statements
affairs of the Company as at March 31, 2013.of Jindal Cotex Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2013, the statement of (b) In the case of the statement of Profit & Loss, of the Profit and Loss and Cash Flow Statement for the year profit/loss for the year ended on that date: andthen ended and a summary of significant accounting policies and other explanatory information. (c) In the case of the Cash Flow Statements of the cash
flows for the year ended on that date.Management's responsibility for the Financial Statements Report on Other Legal and Regulatory requirementsManagement is responsible for the preparation of these 1. As required by the Companies ( Auditors' Report) financial statements that give a true and fair view of the Order, 2003 ("the order") issued by the Central financial position, financial performance and cash flows Government of India in terms of Section 227(4A) of of the Company in accordance with the accounting the Act, we give in the Annexure a statement on the principles generally accepted in India including matters specified in paragraphs 4 and 5 of the order.Accounting Standards referred to in Section 211(3C) of
2. As required by Section 227(3) of the Act, we report the Companies Act, 1956 ("the Act".) This responsibility that:includes the design, implementation and maintenance of
internal control relevant to the preparation and a. We have obtained all the information and
presentation of the financial statements that give a true explanations which to the best of our knowledge
and fair view and are free from material misstatement, and belief were necessary for the purpose of our
whether due to fraud or error.audit.
Auditors' Responsibilityb. In our opinion, proper books of account as
Our responsibility is to express an opinion on these required by law have been kept by the Company financial statements based on our audit. We conducted so far as appears from our examination of those our audit in accordance with the Standards on Auditing books.issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical c. The Balance Sheet, the statement of Profit and requirements and plan and perform the audit to obtain Loss, and the cash Flow Statement dealt with by reasonable assurance about whether the financial this report are in agreement with the books of statements are free from material misstatements. accounts.
An Audit involves performing procedures to obtain audit d. In our opinion, the Balance Sheet, the statement evidence about the amounts and disclosures in the of Profit & Loss and the Cash Flow Statement financial statements. The procedures selected depend comply with the Accounting Standards referred on the auditors' judgment, including the assessment of to in section 211(3C) of the Act.the risks of material misstatement of the financial
e. On the basis of the written representations statements, whether due to fraud or error. In making received from the directors as on March 31, those risk assessments, the auditor considers internal 2013 taken on record by the board of directors, control relevant to the Company's preparation and fair none of the directors is disqualified as on March presentation of the financial statements in order to design 31, 2013, from being appointed as a director in audit procedures that are appropriate in the terms of section 274(1)(g) of the Act. circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
OpinionIn our opinion and to the best of our information and according to the explanations given to us, the aforesaid
INDEPENDENT AUDITOR’S REPORT
Annual Report 2012-13
13
FOR AGGARWAL GARG & CO. Chartered Accountants
(P. K. Garg) Partner
M. No. 083139FRN : 004745N
Dated: 30.05.2013Place: Ludhiana
14
Jindal Cotex Limited
(Referred to in paragraph 1 under the heading of "Report on other Legal and Regulatory Requirements" of our report of even date)
On the basis of such checks as we considered appropriate and according to the information and explanations given to us during the course of audit, we state that:-
1. a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
b) As explained to us the fixed assets have been physically verified by the management at reasonable intervals during the year. We are informed that no material discrepancies have been noticed by the management on such verification.
c) According to the information and explanations given to us, the Company has not disposed off substantial part of its fixed assets during the year and the going concern status of the Company is not affected.
2. a) According to the information and explanations given to us the Physical verification of finished goods, stores & spare parts and Raw Material was conducted by the Management where ever practicable at reasonable intervals.
b) In our opinion and according to the information and explanation given to us, the procedure of physical verification of inventories followed by the management is reasonable and adequate in relation to the size of the company and the nature of its business.
c) The company is maintaining proper records of inventory. As explained to us, no material discrepancies were noticed on physical verification of inventory as compared to the book records.
3. a) The company has granted unsecured loans to three companies, firms or other parties listed in the register maintained u/s 301 of the Companies Act, 1956. The amount outstanding at the close of the year is Rs. 17708.33 lac.
b) According to the information and explanation given to us, the rate of interest and other terms and conditions of the loans are prima facie not prejudicial to the interest of the company and the payment of principal amount and interest are also regular.
c) The company has taken unsecured loans from 08 person covered in the register maintained u/s 301 of the companies Act, 1956. The amount payable at the close of the year is Rs. 1894.58 lacs.
d) According to the information and explanation given to us, the rate of interest and other terms
ANNEXURE TO INDEPENDENT AUDITOR’S REPORT
and conditions of the loans are prima facie not prejudicial to the interests of the company and the payment of principal amount and interest are also regular.
4. In our opinion and according to the information and
explanation given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to the purchase of inventory, fixed assets and sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control procedures.
5. In respect of contracts or arrangements entered in the register maintained in pursuance of section 301 of the Companies Act, 1956, to the best of our knowledge and belief and according to the information and explanations given to us :a. The particulars of the contracts or arrangements
referred to in section 301 needed to be entered into the register, maintained under the said section have been so entered.
b. In our opinion and having regard to our comments in paragraph above, the transactions exceeding the value of Rs. 5.00 Lacs in respect of any parties during the current year have been made at the prices which are prima facie reasonable having regard to prevailing market prices at the relevant time where such prices are available.
6. In our opinion and according to the information and explanation given to us, the company has accepted deposits pursuant to the provisions of section 58-A of the Companies Act, 1956. The company has duly complied with the provisions of section 58-A and 58-AA of the Companies Act,1956 and Companies (Acceptance of Deposits) Rules,1975.
7. In our opinion the company has an internal audit system commensurate with the size and nature of its business.
8. We have broadly reviewed the books of accounts maintained by the company pursuant to the order made by the Central Government for the maintenance of cost records under section 209(1) (d) of the Companies Act, 1956 as prescribed by the central government and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. However we have not conducted detailed examination to check its accuracy and completeness.
9. In respect of statutory dues:a. According to the information and explanations
given to us, and as per the records of the company, we are of the opinion that the
company has been regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees state Insurance, Income Tax, Sale Tax, Wealth Tax, Custom Duty, Cess, Service Tax, and any other statutory dues if any applicable with the appropriate authorities, except TDS Rs 39.25 Lacs, TCS Payable Rs. 6.99 Lacs and Provident Fund Rs. 99.62 Lacs which was pending for deposit as on 31.03.2013. TDS Rs.10.78 Lacs,TCS Payable Rs. 4.32 Lacs. Provident Fund Rs. 46.69 Lacs payable in respect of the aforesaid dues were outstanding as at 31'st March 2013 for a period of more than 6 months from the date they become payable.
b. According to the information & explanations given to us, and as per the records of the company, the company has no disputed statutory dues .
10. The company has no accumulated losses and cash loss during the current financial year but has incurred cash loss in the immediately preceding financial year under audit.
11. In our opinion and according to the information and explanations given to us, the company has defaulted in repayment of dues to bank, financial institutions, or debenture holders. Amt. of default in repayment of loan is Rs. 408.42 Lacs. for a period of one month in term loan and C/C account were overdue by Rs. 222.59 Lacs., defaults in payment of Interest is for Rs. 308.09 Lacs. for a period of 1-3 months.
12. According to the information and explanations given to us, the company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.
13. The company is a manufacturing company and therefore, the provisions of Clause 4(xiii) of the Companies (Auditor's Report) Order, 2003 are not applicable to the Company.
14. According to the information and explanations given to us, the Company has not dealt or traded in shares, securities, debentures and other investments. Therefore, the provisions of Clause 4(xiv) of the Companies (Auditor's Report) Order, 2003 are not applicable to the Company.
15. According to the information and explanations given to us, the Company has given Corporate guarantees of Rs 242.50 cr for loans taken by its subsidiaries from banks and financial institutions and the terms and conditions whereof in our opinion are not prima-facie prejudicial to the interest of the company.
16. In our opinion and according to the information and explanations given to us, the Term Loans have been applied for the purpose for which they were raised.
17. In our opinion and according to the information and explanations given to us and on an overall examination of the balance sheet of the company, we report that no funds raised on short-term basis have been used for long-term investment.
18. According to the information and explanations given to us, the company has not made any preferential allotment of shares during the current year to parties and companies covered in the Register maintained under Section 301 of the Companies Act, 1956.
19. As per information and explanation given to us no debentures have been issued by the company.
20. We have verified that the end use of the money raised by way of public issue is as disclosed in the notes to the Financial statements.
21. According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the period covered by our audit.
FOR AGGARWAL GARG & CO. Chartered Accountants
(P. K. Garg) Partner
M. No. 083139FRN : 004745N
Dated: 30.05.2013Place: Ludhiana
Annual Report 2012-13
15
EQUITY AND LIABILITIES
Shareholder's Funds
Share Capital
Reserves and Surplus
Money received against share warrants
Sub Total
Share Application Money pending allotment
Non-Current Liabilities
Long Term Borrowings
Deferred Tax Liabilities (Net)
Other Long Term Liabilities
Long Term Provisions
Current Liabilities
Short term Borrowings
Trade Payables
Other Current Liabilities
Short term Provisions
TOTAL
ASSETS
Non Current Assets
Fixed assets
Tangible Assets
Intangible assets
Capital Work in Progress
Intangible Assets under Development
Sub Total
Non Current Investments
Deferred Tax Assets (Net)
Long Term Loans and Advances
Other Non Current assets
Sub Total
Current Assets
Current Investments
Inventories
Trade receiables
Cash and Cash Equivalents
Short Term Loans and Advances
Other Current Assets
TOTAL
1
2
3
4.1
4.2
5
6
7
8
9
10
11
12
13
14
15
450,031,400
2,416,429,740
-
2,866,461,140
-
1,059,838,149
-
-
7,315,001
622,258,954
353,691,192
272,048,608
47,879,562
5,229,492,606
973,638,766
93,483
453,272,943
-
1,427,005,191
828,577,664
-
223,457,143
-
2,479,039,998
-
189,468,618
794,798,606
33,988,440
1,732,196,944
-
5,229,492,606
450,031,400
2,372,316,726
-
2,822,348,126
-
591,656,088
-
30,966,065
-
842,172,979
399,252,203
184,641,776
32,297,519
4,903,334,756
1,072,127,492
98,290
455,175,243
-
1,527,401,025
828,577,664
-
173,836,863
-
2,529,815,552
-
219,636,455
268,831,564
37,200,114
1,847,851,071
-
4,903,334,756
BALANCE SHEET AS AT 31st MARCH, 2013
NOTE NO.PARTICULARS 31.03.2013(Amount in Rs.)
31.03.2012
I.
1)
a)
b)
c)
2)
3)
a)
b)
c)
d)
4)
a)
b)
c)
d)
II.
1) a)
i
ii
iii
iv
b)
c)
d)
e)
2)
a)
b)
c)
d)
e)
f)
For and on behalf of the Board of Directors
(YASH PAUL JINDAL)(SANDEEP JINDAL)
Chairman & Managing Director Director
PLACE : LUDHIANA DATE : 30.05.2013
(ANOOP KUMAR)
A.G.M.-Accounts (LALIT VIG)
Manager-Accounts
(ANIL MALHAN)Company Secretary
Significant Accounting Policies and Notes on Accounts 1 to 40
(RAJESH SHARMA)
Director
As per our report of even date attached For Aggarwal Garg & Co.
Chartered AccountantsFirm Regn. No. : 004745N
(PAWAN KUMAR GARG) PARTNER
M.No. 083139
16
Jindal Cotex Limited
17
PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31st MARCH, 2013
NOTE NO.PARTICULARS 31.03.2013(Amount in Rs.)
31.03.2012
I.
II.
III.
IV.
V.
VI
VII
VIII
IX
X
1)
2)
3)
XI
XII
1)
2)
Revenue From Operations
Other Income
Total Revenue (I+II)
Expenses
Cost of Materials Consumed
Purchase of Stock in Trade
Changes in Inventories of Finished
goods work-in-progress and Stock-In-Trade
Employee Benefits Expenses
Finance Costs
Depreciation and Amortization Exps.
Other Expenses
Total Expenses
Profit before exceptional and extraordinary items
and tax (III-IV)
Exceptional Items
Profit before extraordinary items and tax (V-VI)
Extraordinary Items
Profit Before Tax (VII-VIII)
Tax Expense:
Current Tax
Deferred Tax
Adjustment for earlier years tax
Sub Total
Profit/(Loss) for the period
(V-VI)
Earings per Equity Share:
Basic - In Rs.
Diluted - In Rs.
16
17
18
19
20
21
22
23
24
25
2,966,134,565
241,588,934
3,207,723,499
1,216,125,826
1,107,432,706
109,685,875
106,310,992
248,955,386
111,626,063
263,473,638
3,163,610,485
44,113,014
-
44,113,014
-
44,113,014
-
-
-
-
-
44,113,014
0.98
0.98
2,550,875,297
194,138,072
2,745,013,369
1,238,450,526
888,774,065
176,996,765
99,519,676
195,486,686
109,244,186
199,159,024
2,907,630,928
(162,617,559)
-
(162,617,559)
-
(162,617,559)
-
-
-
2,471,418
2,471,418
(165,088,977)
(3.67)
(3.67)
Annual Report 2012-13
For and on behalf of the Board of Directors
(YASH PAUL JINDAL)(SANDEEP JINDAL)
Chairman & Managing Director Director
PLACE : LUDHIANA DATE : 30.05.2013
(ANOOP KUMAR)
A.G.M.-Accounts (LALIT VIG)
Manager-Accounts
(ANIL MALHAN)Company Secretary
Significant Accounting Policies and Notes on Accounts 1 to 40
(RAJESH SHARMA)
Director
As per our report of even date attached For Aggarwal Garg & Co.
Chartered AccountantsFirm Regn. No. : 004745N
(PAWAN KUMAR GARG) PARTNER
M.No. 083139
A. CASH FLOW FROM OPERATING ACTIVITIESNet Profit before tax
Adjustment For: -DepreciationForeign Exchange Fluctuation GainForeign Currency Translation ReserveInterest ReceivedInterest ExpenseProfit on sales of fixed assetsPrevious year Income Tax
Operating Profit before working capital Changes
Adjustment ForTrade & Other ReceivablesLoans and advancesInventories Trade and other Payables
NET CASH FLOW FROM OPERATING ACTIVITES
B. CASH FLOW FROM INVESTING ACTIVITIESPurchase of Fixed AssetsSale of Fixed AssetsInvestment in SubsidiariesLong Term Loan and AdvancesInterest Received
NET CASH FLOW FROM INVESTING ACTIVITES
C. CASH FLOW FROM FINANCING ACTIVITIESProceeds from long term borrowingsProceeds from Short term borrowingsForeign Exchange Flucation GainInterest ExpenseProceeds from FD SchemeOthers Long Term liabilities
NET CASH FLOW FROM FINANCING ACTIVITIES
Net increase/(decrease) in cash & Cash equivalents
Cash and Cash Equivalent at beginning of year
Cash and Cash Equivalent at the end of year
44,113,014
111,626,063 (94,167,759)
- (147,421,175)
248,955,386 - -
163,105,529
(525,967,042) 115,654,127 30,167,837 57,427,864
(159,611,685)
(13,514,243) 2,284,014
- (49,620,280) 147,421,175
86,570,666
417,114,061 (219,914,025)
94,167,759 (248,955,386)
51,068,000 (23,651,065)
69,829,344
(3,211,675)
37,200,114
33,988,440
(162,617,559)
109,244,186 (172,593,764)
2,309,086 (16,667,333) 195,486,686 (2,371,647) (2,471,418)
(49,681,763)
72,166,500 (1,539,489,184)
303,348,616 229,065,316
(984,590,515)
(109,842,535) 6,975,830
(118,877,664) (17,316,750)
16,667,333
(222,393,786)
(198,507,913) 52,107,377
172,593,764 (195,486,686)
- -
(169,293,458)
(1,376,277,759)
1,413,477,873
37,200,114
18
PARTICULARS 31.03.2013(Amount in Rs.)
31.03.2012
CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH, 2013
Jindal Cotex Limited
For and on behalf of the Board of Directors
(YASH PAUL JINDAL)(SANDEEP JINDAL)
Chairman & Managing Director Director
PLACE : LUDHIANA DATE : 30.05.2013
(ANOOP KUMAR)
A.G.M.-Accounts (LALIT VIG)
Manager-Accounts
(ANIL MALHAN)Company Secretary
(RAJESH SHARMA)
Director
As per our report of even date attached For Aggarwal Garg & Co.
Chartered AccountantsFirm Regn. No. : 004745N
(PAWAN KUMAR GARG) PARTNER
M.No. 083139
A. a) Accounting convention
The accounts are prepared on accrual basis under the historical cost convention in accordance with the accounting standards referred to in section 211(3C) of the Companies Act, 1956 and other relevant provisions of the said Act.
b) Going Concern Convention
The accounts of the company have been prepared on going concern basis.
c) Use of Estimates
The preparation of financial statements is in conformity with the generally accepted accounting principles. The preparation of financial statements require estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.
B. Revenue Recognition:
a) Sales:
Sales comprise sale of goods, services and export incentives net of excise duty, sales tax/VAT and trade discount. Revenue from sale of goods is recognized:
i) When all the Significant risks and rewards of ownership are transferred to the buyer and the company retains no effective control of the goods transferred to a degree usually associated with ownership; and
ii) No significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of goods.
b) Interest:
Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.
c) Export Benefits/Incentive:
Revenue in respect of the above benefit is recognized on post export basis.
d) Insurance and Other Claims:
Revenue in respect of claims is recognized when no significant uncertainty exists with regard to the amount to be realized.
C. Retirement/ Other Employee Benefits
(a) Gratuity
Provision for gratuity liability to employees is made on the basis of actuarial valuation as at the close of the year.
(b) Provident Fund
Contribution to Provident Fund is made in accordance with the provisions of the Employee's Provident Fund and Miscellaneous Provisions Act, 1952 and charged to the Profit & Loss Account.
(c) Leave with wages
Provision for leave with wages is made on the basis of leave accrued to the workers during the financial year.
D. Fixed Assets
Fixed assets are stated at the values at which they are acquired, less accumulated depreciation and cenvat credit if availed. The cost of fixed assets included interest on borrowing attributable to acquisition of fixed assets up to the date of commissioning of the assets and other incidental expenses incurred up to that date. Machinery spares whose use is expected to be irregular are capitalized and depreciated over the useful life of the principal item of asset.
E. Intangible assets
Intangible assets are stated at cost less accumulated amount of amortization.
19
Annual Report 2012-13
SIGNIFICANT ACCOUNTING POLICIES
F. Capital Work in Progress
Projects under commissioning and other Capital Work in Progress are carried at Cost, comprising direct cost, related incidental expenses, indirect expenditure and attributable interest related to that project.
G. Impairment of Assets
At each balance sheet date an assessment is made whether any indication exists that an asset has been impaired. If any such indication exists, an impairment loss i.e. the amount by which carrying amount of an asset exceeds its recoverable amount is provided in the books of accounts.
H. Depreciation
Depreciation is provided in accordance with and in the manner and at the rates specified in schedule XIV to the Companies Act, 1956 as under:
a) on written down value basis for assets acquired prior to 06/03/2006 and
b) on straight line basis for assets acquired after that date.
I. Foreign Currency Conversion/Translation
Foreign Currency Transactions are accounted at the exchange rate prevailing on the date of the transactions. Foreign exchange monetary items outstanding as at the B/S date are reported using the closing rate, Gains & Losses resulting from the settlement of such transactions & translation of monetary assets and liabilities denominated in foreign currencies are recognized in the Profit & Loss A/C.
In case of a foreign subsidiary, being a non integral operation the long term monetary items are restated at the exchange rate prevailing on the reporting date and the difference if any arising thereon is taken in for currency translation reserve and the short term monetary items are also restated at the exchange rate prevailing on the reporting date and the difference arising thereupon is recognized in Profit & Loss A/c.
J. Borrowing Costs
Borrowing cost attributable to construction periods is capitalized. Other borrowing costs are recognized as an expense in the period in which they are incurred.
K. Investments
Long term investments are carried at cost, less provision for diminution, if it is of permanent nature in value of such investments.
L. CENVAT Credit
The CENVAT Credit of excise duty if any availed on inputs and capital goods is accordingly reduced from the purchase cost of related inputs or capital goods as the case may be.
M. Accounting for Taxes on Income
Provision for tax if any, is based on the assessable profits computed in accordance with the provisions of Income Tax Act 1961 and the Accounting Standard 22 issued by the Institute of Chartered Accountants of India. In case the net result is positive i.e. deferred tax is assets then it is not recognized as a matter of prudence.
N. Cash Flow Statement
The company has prepared the Cash Flow Statement using the Indirect Method in compliance of Accounting Standard issued by The Institute Of Chartered Accountants of India (AS-3).
O. Segmental Reporting
The company is principally engaged in the business of textiles (mainly manufacturing of yarn of different kinds and trading of knitted cloth & acrylic top etc.) and the project of wind mill (for generation of electricity for re-sale.) The company is also operating in different geographical segments. The relevant information about these segments are given as part of Notes on Accounts.
20
Jindal Cotex Limited
SIGNIFICANT ACCOUNTING POLICIES
NOTE NO. 1
SHARE CAPITAL
AUTHORIZED CAPITAL
AT THE BEGINNING OF THE YEAR
60000000 EQUITY SHARES OF RS. 10/- EACH(PREV.
YEAR 60000000 EQUITY SHARES OF RS. 10/- EACH)
INCREASE DURING THE YEAR
NIL (PREV. YEAR NIL)
AT THE END OF THE YEAR
60000000 EQUITY SHARES OF RS. 10/- EACH(PREV.
YEAR 60000000 EQUITY SHARES OF RS. 10/- EACH)
ISSUED CAPITAL
AT THE BEGINNING OF THE YEAR
45003140 EQUITY SHARES OF RS. 10/- EACH(PREV.
YEAR 45003140 EQUITY SHARES OF RS. 10/- EACH)
INCREASE DURING THE YEAR
NIL (PREV. YEAR NIL)
AT THE END OF THE YEAR
45003140 EQUITY SHARES OF RS. 10/- EACH(PREV.
YEAR 45003140 EQUITY SHARES OF RS. 10/- EACH)
SUBSCRIBED AND PAID UP CAPITAL
AT THE BEGINNING OF THE YEAR
45003140 EQUITY SHARES OF RS. 10/- EACH(PREV.
YEAR 45003140 EQUITY SHARES OF RS. 10/- EACH)
INCREASE DURING THE YEAR
NIL (PREV. YEAR NIL)
AT THE END OF THE YEAR
45003140 EQUITY SHARES OF RS. 10/- EACH(PREV.
YEAR 45003140 EQUITY SHARES OF RS. 10/- EACH)
21
Annual Report 2012-13
PARTICULARS 31.03.2013(Amount in Rs.)
31.03.2012
stNotes on Financial Statements for the year ended 31 March, 2013
600,000,000
-
600,000,000
450,031,400
-
450,031,400
450,031,400
-
450,031,400
600,000,000
-
600,000,000
450,031,400
-
450,031,400
450,031,400
-
450,031,400
SHAREHOLDERS HOLDING MORE THAN 5% SHARES
NAME OF PERSON
JP Morgan Chase Bank NA
Ramesh Kumar Jindal
Rajinder Kumar Jindal
Yash Paul Jindal
% P.Y.
31.03.2012
44
8
8
7
No. OF SHARES
31.03.2012
19,820,000
3,642,216
3,606,576
3,139,218
No. OF SHARES
31.03.2013
13580000
2886008
2830926
2711918
% C.Y.
31.03.2013
30
6
6
6
As per records of the Company, including its Register of Members and other declarations received from them regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares
31.03.20134,801,596 (Equity shares issued as Bonus shares on 04.07.2008)
31.03.20124,801,596
Rights, preferences and restrictions attaching to each class of shares
"Equity Shares: The company has only one class of equity shares having par value of Rs. 10/- per share. Each holders of equity shares present is entitled to have one vote upon show of hands and upon a poll every member entitled to vote and present in person or by proxy shall have one vote, for every share held by him. "
The Company in general meeting may declare a dividend to be paid to the members according to their respective rights and interests in the profits and may fix the time for payment
Dividend shall be paid by the Company in respect of any share only to the registered holder of such share or to his order or to his banker.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the realized value of the assets of the Company, remaining after payment of all preferential dues. The distribution will be in proportion to the number of equity shares held by the shareholders.
22
Jindal Cotex Limited
NOTE NO. 2RESERVES AND SURPLUSSurplus in Profit and Loss AccountAs per Last Balance SheetAdd Profit during the yearLess Transfer to General ReserveClosing Balance
Securities Premium ReserveAs per Last Balance SheetAdd:- On issue of Shares/ GDRs
Less:IPO/GDR Expenses AdjustedLess:Foreign Currency fluctuation for GDRClosing Balance
Foreign Currency Translation ReserveAs per Last Balance SheetAdd Transfer from Foreign Exchange Fluctuation
Closing Balance
Total Reserves and Surplus
NOTE NO. 3LONG TERM BORROWINGSI Secured1 Term Loans from Banks*2 Term Loans from Others (Secured)
Total Secured Long Term Borrowings (I)II Unsecured1 Term Loans from Banks2 Deffered Payment Liabilities3 Deposits **4 Loans and Advances from related parties #a Jindal Holdings & Investment Ltd.b Jindal Cycle (P) Ltd.c Jindal Fine Industriesd Sh. Yash Paul Jindale Sh. Rajinder Jindalf Sh. Sandeep Jindalg Sh. Ramesh Jindalh Smt. Santosh Jindali Sh. Jagdish Rai Jindal5 Other Loans and Advancesa Intercorporate loansb OthersTotal Unsecured Long Term Borrowings ( II )
Total Long Term Borrowings (I+II)
91,449,276 44,113,014
- 135,562,290
2,278,558,364 -
2,278,558,364 - -
2,278,558,364
2,309,086 -
2,309,086
2,416,429,740
256,538,253 (165,088,977)
- 91,449,276
2,278,558,364 -
2,278,558,364 - -
2,278,558,364
- 2,309,086
2,309,086
2,372,316,726
766,952,269 7,655,897
774,608,166
2,593,459 -
93,178,000
189,458,524
--
285,229,984
1,059,838,149
505,358,994 -
505,358,994
6,271,009 -
42,110,000
37,916,085
- -
86,297,094
591,656,088
* Maturity Profile of Secured Term Loans are as set out below:
Current YearPrev Year
1-2 years
21033309292801472
2-3 years
203,242,788123,454,500
3-5 years
335,682,285250,833,306
beyond 5 years
25,350,00038,269,718
2012-13 -
1,000,000 117,270,157 16,019,826
3,715,974 23,066,660 13,685,907 10,700,000
4,000,000
2011-12 22,490,000
- -
12,004,245 16,360
721,120 2,684,360
- -
PARTICULARS 31.03.2013(Amount in Rs.)
31.03.2012
**Maturity Profile of Deposits are as set out below:
400110006015000
1-2 years
53,167,00036095000
2-3 years
Current YearPrev Year
With reference to Secured Term Loans and the amount Current Maturities of such Secured Loans.
a Term Loan of Rs 532833127 (Prev. Year Rs 381098000) from OBC, Rs 162698455 (Prev. Year Rs 162994899 )from Allahabad Bank Rs 49387546 (Prev. Year Rs. 12121302) from Corporation Bank are secured by way of Ist Pari Passu charge on the Fixed Assets of the Company and 2nd charge on the Current Assets of the Company. Further these Loans are Secured by way of equitable mortgage of Factory Land and Building of the company situated at VPO Jugiana, G.T. Road , Ludhiana and at Village Mandiala Kalan, Tehsil Khanna, Distt. Ludhiana
b Term Loan of Rs 23277660 (Prev. Year. Rs. 28593441) From Punjab and Sind Bank is secured by way of exclusive charge on Windmill purchased out of the Term Loan.
c Term Loan of Rs 34654052 (Prev. Year Rs. 38676579) from Central Bank Of India is secured by way of equitable mortgage of Land in the name of the Company situated at village Mandiala Kalan, Tehsil Khanna, Distt. Ludhiana
d Loans of Rs 20880580 (Prev. Year Rs. 19622102) are secured by way of hypothecation of respective vehicles.
e Term borrowings from The Catholic Syrian Bank Limited of Rs 180630582 (Prev. Year Rs. 151697269) are Secured by equitable Mortgage of Commercial Plot in the name of M/s Jindal Cycles Pvt. Ltd and Personal guarantees of promoter directors (Subject to approval by bank)
Amt. Of default in repayment of Loan - Rs. 40841861 (Prev. Year Rs. 22436000) Default in payment of Interest- Rs. 30808694 (Prev. Year Rs. 9854674)
Period of continuing default in repayment of Loan - 1 month (Prev.yr. - 1 month) In payment of Interest-1-3 months (Prev. yr.- 1-3 Months)
All Secured Loans except car loans have also been guaranteed by following directors of the Company. i Sh. Sandeep Jindalii Sh. Yash Paul Jindaliii Sh. Rajinder jindaliv Sh. Ramesh Jindal
# With reference to loans and advances from related parties
All the Loans are repayable after 12 months from the date of squaring up bank dues. However the company reserve the right to prepay it.(Prev. yr. also all the Loans are repayable after 12 months from the date of squaring up bank dues. However the company reserve the right to prepay it.)
Amt. Of default in repayment of Loan - Nil (Prev. yr. - Nil) Default in payment of Interest-NIL (Prev. yr.-NIL)
Period of continuing default in repayment of Loan - Nil (Prev.yr. - Nil) In payment of Interest-NIL (Prev. yr.-NIL)
stNotes on Financial Statements for the year ended 31 March, 2013
23
Annual Report 2012-13
NOTE NO. 4.1DEFERRED TAX LIABILITY ( NET )Liability on account of Timing Difference DepreciationLess: Deferred Tax Asset arising on account of timing differenceFor expenses allowable for tax purposes when paid, miscellaneousExpenditure incurred but allowed in future, unabsorbed losses,And MAT credits available (but restricted to the extent ofdefferd Tax liability as a matter of prudence) TOTAL
PARTICULARS 31.03.2013(Amount in Rs.)
31.03.2012
stNotes on Financial Statements for the year ended 31 March, 2013
80,013,256 80,013,256
-
60,457,310 60,457,310
-
NOTE NO. 4.2
OTHER LONG TERM LIABILITIES
Trade Payables ( Long Term )
Others (Capital Goods)
TOTAL
-
30,966,065
30,966,065
-
-
-The Company has not received any communication from any of its suppliers/ service providers in response to letters issued by the Company, confirming whether or not they are registered under the Micro, Small and Medium Enterprises Development Act, 2006. In the absence of any positive confirmation from the suppliers/ service providers, the information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 could not be determined.
NOTE NO. 4.3 LONG TERM PROVISIONS1 Provision for Employee Benefitsa Gratuity payableb Leave With Wages Payable
Sub Total2 Others ( Long Terms )
TOTAL
NOTE NO. 5 SHORT TERM BORROWINGSI Secured
Loans Repayable on Demand/Working Capital Loans1 From Banks
Security - Hypothecation of Stock of raw materials, WIP and finished goods and book debts of the company.
2 Loans repayble on Demand - Others (Secured)Total Secured Short Term Borrowings (I)
II Unsecured1 Loans repayable on Demanda From Banksb From other parties2 Loans and Advances from related parties3 Deposits4 Other Loans and Advancesa Intercorporate loansb Others
Total Unsecured Short Term Borrowings ( II )
Total Short Term Borrowings (I+II)
622,258,954
- 622,258,954
- - - - - -
-
622,258,954
797,172,979
- 797,172,979
- - - - -
45,000,000
45,000,000
842,172,979
4,925,8902,389,1117,315,001
- 7,315,001
-----
(a) Short Term Borrowings of Rs 622258954 (Prev. Year Rs. 645475710) are Secured by way of 1st charge on Current Assets of the Company and 2nd charge on the fixed assets of the Company. Further these Limits are secured by way of equitable mortgage of Factory Land and Building of the company situated at VPO Jugiana, G.T. Road , Ludhiana and at Village Mandiala Kalan, Tehsil Khanna, Distt. Ludhiana and Personal guarantees of promoter directors.
(b) Amt. Of default in repayment of Loan - Rs. 22258953.73 (Prev. yr. - Nil) Default in payment of Interest-NIL (Prev. yr.-NIL)
24
Jindal Cotex Limited
NOTE NO. 6
TRADE PAYABLES
Due to Micro, Small and Medium Enterprises
Due to Others
PARTICULARS 31.03.2013(Amount in Rs.)
31.03.2012
stNotes on Financial Statements for the year ended 31 March, 2013
-
353,691,192
353,691,192
-
399,252,203
399,252,203
The Company has not received any communication from all of its
suppliers/ service providers in response to letters issued by the
Company, confirming whether or not they are registered under the
Micro, Small and Medium Enterprises Development Act, 2006. In
the absence of any positive confirmation from the suppliers/ service
providers, the information as required to be disclosed under the
Micro, Small and Medium Enterprises Development Act, 2006 could
not be determined.
NOTE NO. 7
OTHER CURRENT LIABILITIES
a Current Maturities of Long - Term Debt
b Deposits maturing within next 12 months
c Interest Accured but not due on Borrowings
d Interest Accured and due on Borrowings
e Advances from Customers
f Cheques issued but not presented for payment
g Others (Capital Goods)
h Other Payables
TOTAL
198,945,143
38,843,000
-
30,808,694
3,416,771
-
-
35,000
272,048,608
137,747,329
20,998,000
-
17,641,726
587,410
7,667,311
-
-
184,641,776
NOTE NO. 8
SHORT TERM PROVISIONS
a Provisions for Employee benefits
Bonus Payable
Gratuity payable
E.S.I. Payable
Leave With Wages Payable
Provident Fund Payable
Personnel Expenses Payable
Welfare Fund Payable
b Others
TDS Payable
Freight & Cartage Payable
Expenses Payable
T.C.S. Payable
Service tax payable
VAT Payable
Electricity Expenses Payable
Telephone Expenses Payable
Interest payable
TOTAL
2012-13
2,760,714
-
663,753
-
9,962,116
10,409,832
38,109
3,925,237
254,361
339,439
698,798
-
740,975
12,383,953
26,230
5,676,045
2011-12
2,323,078
4,132,464
176,417
1,863,922
794,139
7,928,633
33,183
1,818,693
199,490
138,758
248,313
4,841
-
7,994,913
28,988
4,611,687
23,834,524
24,045,038
47,879,562
17,251,836
15,045,683
32,297,519
25
Annual Report 2012-13
Other Investments ( Long Term )a Investment in Equity Instruments
(Unquoted- Fully Paid Up )In Equity Shares of Subsidiary CompaniesM/s Jindal Medicot Limited(50000 (prev. yr. 50000) Equity Shares of Rs 10/- each fully paid up and and 3750000 (prev. yr. 3750000) shares @ Rs.10/-each fully paid up at a premium of Rs 70 /- per share)
M/s Jindal Specialty Textiles Ltd.(50000 (prev. yr. 50000) Equity Shares of Rs 10/- each fully paid up and 4050000 (prev. yr. 4050000) shares @ Rs.10/-each at a premium of Rs.90/- each and850000 (prev. yr. Nil) shares @ Rs.10/-each at a premium of Rs.115/- each
300,500,000
511,750,000
300,500,000
511,750,000
stNotes on Financial Statements for the year ended 31 March, 2013
NOTE NO. 9
FIXED ASSET
Particulars
Gross Block
Depreciaton Net Block
Value at the beginning
Addition during the
year
Other Adjustments
Deduction during the
year
Value at the end
Value at the beginning
WDV as on 31.03.2013
Sr. No. Addition
during the year
Deduction during the
year
Value at the end
WDV as on 31.03.2012
Tangible AssetsLandFactory BuildingBuildingPlant and EquipmentWeigh Bridge & ScalesElectric InstallationsOffice EquipmentComputerCarsScooterVehiclesFurnitures & FixturesWind Mill
SUB TOTAL (A)
TOTAL-PREVIOUS YR
Intangible Assets
SUB TOTAL (B)
TOTAL-PREVIOUS YR
Capital W. I. P.
SUB TOTAL (C)
TOTAL-PREVIOUS YR
Intangible Assets Under Development
SUB TOTAL (D)
TOTAL-PREVIOUS YRTotal [A + B + C + D] (Current Year)
(Previous Year)
I123456789
10111213
II
III
IV
0.00 0.00
154454.30 12487107.00
0.00 57774.76
272486.00 37557.18
0.00 0.00 0.00
109149.64 0.00
13,118,529
80,765,378
14,000.00
14,000.00
-
8,797,700.00
8,797,700.00
10,913,937.00
-
-
-
21,930,228.88
91,679,315.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00
0.00
-
-
-
-
-
18,163,221.00
-
-
-
-
18,163,221.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00
15,218,629
-
-
-
10,700,000.00
10,700,000.00
-
-
-
-
10,700,000.00
15,218,629.00
62011573.00 48336816.66
206874966.47 1055985891.43
1334699.24 59820483.03 4148972.96
10124726.92 43933971.00
33072.00 3511412.00 2932830.02
65748035.00
1,564,797,450
1,551,678,920
133,700.00
133,700.00
119,700.00
453,272,943.00
453,272,943.00
455,175,243.00
-
-
-
2,018,204,092.73
2,006,973,864.00
62011573.00 48336816.66
206720512.17 1043498784.43
1334699.24 59762708.27 3876486.96
10087169.74 43933971.00
33072.00 3511412.00 2823680.38
65748035.00
1,551,678,921
1,486,132,171
119,700.00
119,700.00
119,700.00
455,175,243.00
455,175,243.00
426,098,085.00
-
-
-
2,006,973,864.00
1,912,349,956.00
0.00 33356766.81 16266692.70
379843982.65 604616.37
16404858.03 1168105.80 5438608.78 9914647.81
8946.00 1471145.84 1177588.19
13895469.96
479,551,429
380,938,789
21,410.14
21,410.14
4,310.00
-
-
-
-
-
-
479,572,839.00
380,943,099.00
0.00 1498004.98 5954494.25
92196265.58 47688.73
2551917.98 165079.20
1378818.58 3865948.88
3142.00 349497.45 124901.62
3471496.25
111,607,256
109,227,086
18,807.00
18,807.00
17,100.00
-
-
-
-
-
-
111,626,062.50
109,244,186.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00
10,614,446
-
-
-
-
-
-
-
-
-
-
10,614,446.00
0.00 34854771.79 22221186.95
472040248.23 652305.10
18956776.01 1333185.00 6817427.36
13780596.69 12088.00
1820643.29 1302489.81
17366966.21
591,158,684
479,551,429
40,217.14
40,217.14
21,410.00
-
-
-
-
-
-
591,198,901.58
479,572,839.00
62011573.00 13482044.87
184653779.52 583945643.20
682394.14 40863707.02 2815787.96 3307299.56
30153374.31 20984.00
1690768.71 1630340.21
48381068.79
973,638,765
1,072,127,491
93,482.86
93,482.86
98,290.00
453,272,943.00
453,272,943.00
455,175,243.00
-
-
-
1,427,005,191.15
1,527,401,024.00
62011573.00 14980049.85
190453819.47 663654801.78
730082.87 43357850.24 2708381.16 4648560.96
34019323.19 24126.00
2040266.16 1646092.19
51852565.04
1,072,127,492
1,105,193,382
98,289.86
98,289.86
115,390.00
455,175,243.00
455,175,243.00
426,098,085.00
-
-
-
1,527,401,024.77
1,531,406,857.00
NOTE NO. 10NON CURRENT INVESTMENTS 31.03.2013
(Amount in Rs.)31.03.2012
26
Jindal Cotex Limited
M/s Himachal Textile Park Ltd(250000 (prev. yr. 250000) Equity Shares of Rs 10/- each fully paid up
M/s Jindal Metalex Ltd(Formerly known as Jindal Food & Beverages Ltd.)(50000 (prev. yr. 50000) Equity Shares of Rs 10/- each fully paid up )
M/s Jindal Infrabiz Ltd(50000 (prev. yr. 50000) Equity Shares of Rs 10/- each fully paid up
M/s Jindal International FZE(1 Equity Share (prev. yr. 1 share ) of 1 million AED fully paid up)
b Other Non-Current Investments(Quoted- Fully Paid Up ) Other than SubsidiariesBARODA PIONEER PSU EQUITY FUND
Sub Total
Total Long Term Investments
2,500,000
500,000
500,000
12,627,664
200,000
828,577,664
828,577,664
2,500,000
500,000
500,000
12,627,664
200,000
828,577,664
828,577,664
Aggregate Amount of Quoted Investments
Market Value of Quoted Investments
Aggregate Amount of Unquoted Investments
Aggregate Provision for diminution in Value of Investments *
Note : All investments are valued at cost.
* Nil as they are not of Permanent Nature
200,000
132,400
828,377,664
-
200,000
146,600
828,377,664
-
NOTE NO. 11LONG TERM LOANS & ADVANCES (Unsecured and Considered Good)a Security Deposits
Lease SecuritiesElectricity SecurityTelephone SecuritySales Tax Security ( Rajasthan)L P G SecurityAdvance Consumption Deposit PSPCLSecurity Shipping Lines
b Loans and Advances to related partiesJindal Medicot LtdJindal Specialty Textiles LtdJindal Metalex Ltd.Jindal Holdings & Investment LtdHimachal Textiles Park Ltd.TOTALLoans and advances include the amounts due fromDirectors-either severally or jointlyOther officers of the Company-either severally or jointlyFirm in which director is a partnerPrivate company in which directors is a member
4,500,000 6,536,483
31,811 20,000
2,100 5,715,844
-
151,406,347 55,244,558
---
223,457,143
- -- -
4,500,000 6,536,483
40,571 20,000
2,100 5,271,560
30,000
134,634,253 21,572,253
429,643 -
800,000 173,836,863
- - - -
PARTICULARS 31.03.2013(Amount in Rs.)
31.03.2012
stNotes on Financial Statements for the year ended 31 March, 2013
27
Annual Report 2012-13
NOTE NO. 12INVENTORIES(As taken, valued and certified by the management)a Raw Materialsb Work in Progressc Finished Goodsd Stock In Tradee Store & Sparesf Others (Scrap/Waste)
TOTAL
98,645,595 26,713,300 30,404,834
7,397,585 22,501,160
3,806,144 189,468,618
28,261,611 24,063,019 76,625,952 71,200,865 13,367,106
6,117,901 219,636,455
Inventories are valued at cost or net realizable value, whichever is lower. The cost in respect of the various items of inventory is computed as under:- In case of raw material at actual cost determined on FIFO basis plus direct expenses.- In case of Stores and spares at weighted average cost.- In case of Work in process at raw material cost plus appropriate proportion of direct labour and overheads.- In case of finished goods at raw material cost plus conversion cost and appropriate proportion of overheads.
NOTE NO. 13TRADE RECEIVABLES(Unsecured and Considered Good)
a Outstanding for a period exceeding six months from the date they are due for payment
b Outstanding for a period not exceeding six months from the date they are due for paymentTOTAL
12,284,658
782,513,948
794,798,606
59,866,489
208,965,075
268,831,564
NOTE NO. 14CASH AND CASH EQUIVALENTSa Balance with Banksb Cash in Handc Fixed Deposit with banksd Other Bank balances
Fixed Deposit as Margin moneyTOTAL
13,915,688 5,806,713
41,039
14,225,000 33,988,440
11,185,270 7,734,844 4,055,000
14,225,000 37,200,114
NOTE NO. 15SHORT -TERM LOANS AND ADVANCES (Unsecured and Considered Good)
a Loans and advances to related parties (Short Term)Jindal International FZE (Current Account)Jindal International FZEJindal Specialty Textile Ltd (Current Account)Sub Total
b Others Advances recoverable in cash or in kind or for value to be receivedi) Advance to Suppliersii) Prepaid Expensesiii) Prepaid Insuranceiv) Advance Income Tax - Net of Provisionv) Balacne With Excise & Taxation Dept.vi) Balance With Central Excise & Custom Authoritiesvii) Other Advances
TOTAL
2,215,208
1,561,967,550 -
1,564,182,758
39,142,941 8,562,599 1,173,647 1,128,226
465,958 48,334,529 69,206,286
1,732,196,944
1,387,137
1,561,967,550 1,181,000
1,564,535,687
23,194,681 3,922,842
702,787 433,562
13,284,938 47,338,667
194,437,908
1,847,851,071
PARTICULARS 31.03.2013(Amount in Rs.)
31.03.2012
stNotes on Financial Statements for the year ended 31 March, 2013
Loans and advances include the amounts due fromDirectors-Either severally or jointlyOther officers of the Company-either severally or jointlyFirm in which director is a partnerPrivate company in which directors is a member
- - - -
- - - -
28
Jindal Cotex Limited
NOTE NO. 16
REVENUE FROM OPERATIONS
a Sale of Products - Inclusive of Excise Duty
b Other Operating Revenue
Total Revenue
Less: Excise Duty
TOTAL
2,963,743,431
3,141,469
2,966,884,900
750,335
2,966,134,565
PARTICULARS 31.03.2013(Amount in Rs.)
31.03.2012
stNotes on Financial Statements for the year ended 31 March, 2013
2,545,951,022
5,139,996
2,551,091,018
215,721
2,550,875,297
NOTE NO. 17
OTHER INCOME
Interest Income
Foreign Exchange Fluctuation
Foreign Exchange Fluctuation (Export)
Profit on sale of fixed assets
Misc income
TOTAL
147,421,175
94,167,759
-
-
-
241,588,934
16,667,333
172,593,764
2,382,322
2,371,647
123,006
194,138,072
NOTE NO. 18
COST OF MATERIAL CONSUMED
Opening Stock of Raw Materials…. I
Purchase of Raw Materials…. II
Closing Stock Raw Materials…..III
Cost of Raw Material Consumed ( I+II-III )
28,261,611
1,286,509,810
98,645,595
1,216,125,826
156,067,967
1,110,644,170
28,261,611
1,238,450,526
NOTE NO. 19
PURCHASES OF STOCK IN TRADE
Purchases
Total Purchase
1,107,432,706
1,107,432,706
888,774,065
888,774,065
NOTE NO. 20
CHANGES IN INVENTORIES OF FINISHED GOODS
WORK-IN-PROGRESS & STOCK IN TRADE
Opening Stock of Finished Goods
Opening Stock of Work-in-Progress
Opening Stock of Stock-in-Trade
Opening Stock of Waste
Sub Total A
Closing Stock of Finished Goods
Closing Stock of Work-in-Progress
Closing Stock of Stock-in-Trade
Closing Stock of Waste
Sub Total B
TOTAL ( A-B )
76,625,952
24,063,019
71,200,865
6,117,902
178,007,738
30,404,834
26,713,300
7,397,585
3,806,144
68,321,863
109,685,875
320,141,081
18,747,296
-
16,116,126
355,004,503
76,625,952
24,063,019
71,200,865
6,117,902
178,007,738
176,996,765
29
Annual Report 2012-13
NOTE NO. 21EMPLOYEE BENEFIT EXPENSEWages Salary to OthersRemuneration to Directors Total Salary & WagesHouse Rent AllowanceSpecial AllowanceConveyance/Transport AllowanceMedical Allowance/ExpensesBonusLeave with WagesE.S.I.contribution to Provident FundStaff Welfare ExpensesGratuityCanteen & Beverages ExpensesEx-Gratia Insurance -EDLISecurity ExpensesContribution to Welfare FundNotice PayRecruitment ExpensesTOTAL
NOTE NO. 22FINANCE COSTS Interest on Bank BorrowingsInterest on PurchaseBank ChargesInterest on Public DepositFixed Deposit Scheme ExpensesIncome tax earlier yearInterest on Unsecured LoansInterest on late deposit of Service TaxInterest on late deposit of TDSInterest on Others BorrowingsTOTAL
NOTE NO. 23DEPRECIATION AND AMORTIZATION EXPENSEDepreciation
TOTAL
NOTE NO. 24OTHER EXPENSESManufacturing ExpensesPower & FuelsPacking Materials ConsumedBuilding Repair & MaintenanceMachinery Repair & MaintenanceElectric Repair & MaintenanceProduction ExpensesRentSub Total I
184,593,531 27,126,321
584,744 17,282,844
4,074,694 2,069,932
44,832 235,776,898
131,249,741 13,159,743
931,393 15,502,951
2,750,289 1,759,887
29,888 165,383,892
PARTICULARS 31.03.2013(Amount in Rs.)
31.03.2012
stNotes on Financial Statements for the year ended 31 March, 2013
40,864,032 18,495,537
600,000 59,959,569 16,687,620
1,854,475 10,430,606
1,258,839 3,038,447 1,817,815 1,804,941 6,374,940
78,295 1,351,793 1,216,957
2,762 187,901
- 49,924
184,290 11,818
106,310,992
200,582,007 13,909,765
5,977,578 13,897,574
2,642,365 8,948
10,865,588 5,245
113,024 953,291
248,955,386
111,626,063
111,626,063
32,514,789 16,060,695
5,700,000 54,275,484 16,914,889
1,498,364 10,620,216
1,158,480 2,807,042 2,175,682 1,742,194 5,231,275
119,341 641,830
1,177,743 569
232,310 304,085
35,556 433,537 151,079
99,519,676
184,910,304 5,228,955 4,960,267
- 259,660
- 127,500
- - -
195,486,686
109,244,186
109,244,186
30
Jindal Cotex Limited
Selling & Distribution ExpensesSales CommisionExport ExpensesFreight & Octroi OutwardCommission on exportRebate & DiscountSub Total II
OTHERSAuditor's RemunerationAudit FeeFor Tax AuditReimbursement of out of Pocket Exps.
Advertisement & PublicityVehicle Repair & MaintenanceCar Repair & MaintenanceScooter Repair & MaintTravelling ExpensesWind Mill ExpensesTelephone ExpensesInternet ExpencesLoading & Unloading ChargesPrinting & StationeryPostage & TelegramLocal ConveyanceLegal & Professional ChargesERP Implementation ChargesLease Rent on LandInsurance Godown Rent Annual Maint ChgsRevenue StampsHorticultural ExpensesGeneral ExpensesFestival ExpensesRates & TaxesEntertainment ExpensesDirector Travelling ExpensesCharity & DonationComputer Repair & MaintenanceBooks & PeriodicalsService Tax Share Trf & Listing FeesOther ExpensesSub Total III
TOTAL OF OTHER EXPENSES
NOTE NO. 25EARNINGS PER SHAREI) Net Profit after tax as per Statement of Profit & Loss
attributable to Equity Shareholders ii) Weighted Average number of equity shares used as
denominator for calculating EPSiii) Basic Earnings per shareiv) Diluted Earnings per sharev) Face Value per equity share
2,945,326 3,868,711
95,920 25,665
1,936,361 8,871,982
255,900 25,000 36,035
316,935 359,519 531,940
1,331,966 2,945
1,425,269 -
1,244,045 411,996
1,980,765 779,456 371,992 494,126
1,909,020 143,734 144,000
1,849,401 60,000
1,514,479 8,720 8,360
104,847 610,416
1,238,572 462,797
--
135,643 4,347
366,435 264,046 748,988
18,824,757
263,473,638
44,113,014
45,003,140
1 1
10
PARTICULARS 31.03.2013(Amount in Rs.)
31.03.2012
stNotes on Financial Statements for the year ended 31 March, 2013
639,957 2,451,931
175,972 5,756,118
- 9,023,978
204,055 16,545 11,155
231,755 376,633 664,181
1,214,920 31,737
2,540,587 3,066
1,591,355 387,399
1,409,129 621,140 256,630 417,699
1,505,723 846,298 144,000
1,683,520 60,000
1,436,333 2,550 8,970
332,873 787,546
1,622,925 333,096
5,228,026 51,000 83,936
7,551 84,349
216,394 569,833
24,751,154
199,159,024
(165,088,977)
45,003,140
(4)(4)10
31
Annual Report 2012-13
NOTE NO. 26VALUE OF IMPORTS CALCULATED ON C.I.F. BASISRaw MaterialComponents and Spare PartsCapital GoodsTOTAL
NOTE NO. 27EXPENDITURE IN FOREIGN CURRENCYForeign Travelling ExpensesInterest on FCNRB LoansGDR Issue/Maintenance ExpensesTOTAL
NOTE NO. 28CONSUMPTION OF IMPORTED AND INDIGENOUSRAW MATERIAL, SPARE PARTS & COMPONENTSIndigenous% of ConsumptionImported% of ConsumptionTOTAL
NOTE NO. 29EARNING IN FOREIGN EXCHANGEExport of Goods- FOB BasisInterest and DividendTOTAL
9,148,614 1,922,661
406,874 11,478,149
- 13,968,995
- 13,968,995
1,253,538,411 99
11,071,275 1
1,264,609,686
104,952,943 141,021,393 245,974,336
- 756,428
37,075,260 37,831,688
4,270,393 15,384,692
176,450 19,831,535
1,256,924,276 100
756,428 -
1,257,680,704
74,509,644 1,544,661
76,054,305
PARTICULARS 31.03.2013(Amount in Rs.)
31.03.2012
stNotes on Financial Statements for the year ended 31 March, 2013
NOTE NO. 30
RELATED PARTY DISCLOSURES
As per Accounting Standared 18, the disclosures of transactions with the related parties are given below:
1 List of related parties where control exists and related parties with whom transactions have taken place:
S.No. Name of Related Parties
1 Jindal Medicot Limited
2 Jindal Specialty Textiles Limited
3 Jindal Metalex Limited
4 Jindal Infrabiz Limited
5 Himachal Textile Park Limited
6 Jindal International FZE
7 Jindal Cycles Pvt Ltd
8 Jindal Fine Industries
9 Leader Cycles Ltd*
10 Jindal Infomedia Pvt Ltd*
11 Jindal Holdings & Investment Limited
12 Mr. Sandeep Jindal
13 Mr. Yash Paul Jindal
14 Mr. Ramesh Jindal
15 Mr. Rajinder Jindal
16 Mr. Aman Jindal
17 Mr. Sahil Jindal
18 Mrs. Manu Jindal
Relationship
Subsidiary Company
Subsidiary Company
Subsidiary Company
Subsidiary Company
Subsidiary Company
Subsidiary Company
Key Management Personnel
Key Management Personnel
Key Management Personnel
Key Management Personnel
Key Management Personnel
Key Management Personnel
Relative of KMP
Enterprises over which KMP or
their relatives are able to
execise significant influence or
control}
32
Jindal Cotex Limited
S.No. Nature of Transactions
1 Purchases( Prev. Yr.)
2 Sales( Prev. Yr.)
3 Rent Paid( Prev. Yr.)
4 Interest received( Prev. Yr.)
5 Remuneration ( Prev. Yr.)6 Net Loans & advances taken
( Prev. Yr.)7 Net Loans & advances given
( Prev. Yr.)
Balances at the year end1 Investments
( Prev. Yr.)2 Loans & advances taken
( Prev. Yr.)3 Loans & advances given
( Prev. Yr.)
II) Transactions during the year with related parties:
Subsidiaries
68,290,571 78,835,048 62,813,715 24,946,507
141,021,393 -
48,861,826 1,564,266,384
828,377,664 828,377,664
1,770,833,662 1,721,971,836
Enterprses over which
KMP or their relatives are
able to exercise
significant influence or
control
60,000 60,000
118,270,157 (113,610,000)
118,270,157 22,490,000
Key Management
Personnel
144,000 144,000
600,000 5,700,000
71,188,367 13,920,000
71,188,367 15,426,085
Others
423,500 423,500
Total
68,290,571 78,835,048 62,813,715 24,946,507
204,000 204,000
141,021,393 -
1,023,500 6,123,500
189,458,524 (99,690,000)
48,861,826 1,564,266,384
828,377,664 828,377,664 189,458,524
37,916,085 1,770,833,662 1,721,971,836
NOTE NO. 31
The Company has taken Godown on Lease from M/s Jindal Cycles Pvt. Ltd. At a monthly rental of Rs 5000.The Lease will expire on July 29, 2014. The company recognises the expense on due basis.
The Company has taken land on lease from Mr. Yash Paul Jindal, Mr. Rajinder Kumar Jindal & Mr. Ramesh Jindal at a monthly rental of Rs 12000.The Lease will expire on June 21, 2028. The company recognises the expense on due basis.
The classification of Future Lease obligations towards Lease Rentals is as follows:-
- not later than one year-later than one year and not later than five years-later than five years
Current Year 204,000 656,000
1,476,000 2,336,000
Previous Year60,000
140,000 Nil
200,000
Actuarial assumptions
2012-13 2011-12
Mortality Table (LIC) 1994-96 1994-96
(Ultimate) (Ultimate)
Discount rate (per annum) 8%
Rate of escalation in salary (per annum) 7%
NOTE NO. 32
Gratuity
(Unfunded)
The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market.
The above information is certified by the actuary.
The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of Plan assets held, assessed risks, historical results of return on plan assets and the Company’s policy for plan assets management.
stNotes on Financial Statements for the year ended 31 March, 2013
(Amount in Rs.)
8%
7%
33
Annual Report 2012-13
Revenue:
External (Net of Excise)
Inter-segment
Total Revenue
Result:
Segment Result
Unallocated Expenditure
Profit before Tax
Provision for Tax/Adjustment of tax for Earlier Years
Profit After Tax
2012-13
2961675159
-
2961675159
46770504
2011-12
2545314985
-
2545314985
(153277311)
2012-13
4,459,406
-
4,459,406
(2,657,490)
2011-12
5,560,312
-
5,560,312
(3,640,248)
2012-13
2966134565
-
2,966,134,565
44113014
-
44113014
-
44113014
2011-12
2550875297
-
2550875297
(156917559)
5,700,000
(162617559)
2471418
(165088977)
NOTE NO. 33
Segment information for the year ended 31st March, 2013
(a) Information about Primary Business Segments
TEXTILE WIND MILL TOTAL
Segment Assets
Segment Liabilities
Capital Expenditure
Depreciation
2012-13
4,352,533,874
2,339,110,067
11,230,229
108154566
2011-12
4022904528
2051864987
105029572
105772690
2012-13
48,381,069
23,921,399
3,471,496
2011-12
51,852,565
29,121,643
-----
3,471,496
2012-13
4,400,914,942
2,363,031,466
11,230,229
111,626,063
2011-12
4,074,757,093
2,080,986,630
105,029,572
109244186
TEXTILE WIND MILL TOTAL
(b) Information about Secondary Geographical Segments
Revenue by geographical market
External
Prev Year
Inter-segment
Total
Total Prev Year
INDIA
2,863,041,873
2,475,373,518
2863041873
2475373518
OUTSIDE INDIA
103843027
75717500
103843027
75717500
TOTAL
2,966,884,900
2,551,091,018
2,966,884,900
2,551,091,018
(c) Notes:
(i) Management has identified two reportable business segments, namely:
- Textile: – Production of Acrylic Yarn, Polyester Yarn, Poly/cotton Blended Yarn, Cotton Yarn and other Blended Yarns.
- Energy Generation: - Generation of Energy from Wind Mill.
Segments have been identified and reported taking into account the nature of products.
(ii) The segment in the geographical segments considered for the disclosure are as follows:-
- India: comprising of sales to customers located within India and earnings in India
- Outside India : comprising of sales to customers located outside India.
(iii) Segment Revenue, Results, Assets and Liabilities include the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis.
(Amount in Rs.)
stNotes on Financial Statements for the year ended 31 March, 2013
34
Jindal Cotex Limited
NOTE NO. 34In the opinion of the Board, current assets, loans and advances have a value in the ordinary course of business at least equal to that stated in the balance sheet and adequate provisions have been made for all known liabilities and depreciation in the books of accounts.
NOTE NO. 35Previous year's figures have been recast/ regrouped wherever necessary to make these comparable with current year's figures.
NOTE NO. 36All figures have been rounded off to nearest rupees.
NOTE NO. 37Debit or Credit Balance on what so ever accounts are subject to confirmation from parties.
NOTE NO. 38Figures in brackets indicate deductions.
NOTE NO. 39CONTIGENT LIABILITIES AND COMMITMENTS
(To the extent not provided for)a Contigent Liabilitiesi) Cliams against company not Acknowledged as Debtii) Other Money for which the Company is Contigently liable iii) Duty saved upon procurement of machinery pending fulfillment of export
obligationiv) Vat Exemption which is available on the basis of eligibility certificate issued by
District Industries Centre, Ludhiana but the same is disputed by concerned sales tax authorities.
v) Demand raised by sales tax authorities and the same is disputed by the company.
vi) Corporate Guarantee given to Banks for grant of Term Loan and CC Limits to Subsidiaries
b Commitmentsi) Estimated amount of contracts remaining to be executed
on capital and not provided forii) Uncalled liability on Shares and other investments partly paidiii) Other Commitments
TOTAL
31.03.2013
- -
972,980
-
-
2,425,000,000
886,345,242 - -
3,312,318,222
31.03.2012
- -
42,333,000
41,729,000
13,414,000
2,347,500,000
886,345,242 - -
3,331,321,242
NOTE NO. 40
The Institute of Chartered Accountants of India has issued an Accounting Standard – 28 on Impairment of Assets, which is mandatory for the accounting periods commencing on or after 1st April, 2004. In accordance with the said standards, the company has assessed as on date of applicability of the aforesaid standard and as well as on balance sheet date, whether there are any indications with regard to the impairment of any of the assets. Based on such assessment, it has been ascertained that no potential loss is present and therefore, formal estimate of recoverable amount has not been made. Accordingly no impairment loss has been provided in the books of accounts.
stNotes on Financial Statements for the year ended 31 March, 2013
For and on behalf of the Board of Directors
(YASH PAUL JINDAL)(SANDEEP JINDAL)
Chairman & Managing Director Director
PLACE : LUDHIANA DATE : 30.05.2013
(ANOOP KUMAR)
A.G.M.-Accounts (LALIT VIG)
Manager-Accounts
(ANIL MALHAN)Company Secretary
Significant Accounting Policies and Notes on Accounts 1 to 40
(RAJESH SHARMA)
Director
As per our report of even date attached For Aggarwal Garg & Co.
Chartered AccountantsFirm Regn. No. : 004745N
(PAWAN KUMAR GARG) PARTNER
M.No. 083139
35
Annual Report 2012-13
TO
THE BOARD OF DIRECTORS
OF JINDAL COTEX LIMITED
Report on the Consolidated Financial Statements
We have audited the accompanying consolidated financial statements of Jindal Cotex Limited ("the Company") and its subsidiaries (the Company and its subsidiaries constitute "the Group", which comprise the Consolidated Balance Sheet as at March 31, 2013, the Consolidated statement of Profit and Loss and the consolidated Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.
Management's responsibility for the Consolidated Financial Statements
Management is responsible for the preparation of these consolidated financial statements that give a true and fair view of the consolidated financial position, consolidated financial performance and consolidated cash flows of the Group in accordance with the accounting principles generally accepted in India including Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956 ("the Act".) This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the consolidated financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatements.
An Audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of report of other auditor on the financial statement/ financial information of Subsidiary Company refer to below in Other Matter paragraph, the aforesaid Consolidated financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
(a) In the case of the Consolidated Balance Sheet, of the state of affairs of the Company as at March 31, 2013.
(b) In the case of the Consolidated statement of Profit & Loss, of the profit/loss for the year ended on that date: and
(c) In the case of the Consolidated Cash Flow Statements of the cash flows for the year ended on that date.
Other Matter
We did not audit the financial statement/ financial information of 1 subsidiary whose report have been furnished to us by the management and our opinion, in so far as it relates to the amounts and disclosures in respect of subsidiary is based solely on the report of the other auditor.
Our opinion is not qualified in repect of this matter.
INDEPENDENT AUDITOR'S REPORT ON CONSOLIDATED FINANCIAL STATEMENT
FOR AGGARWAL GARG & CO. Chartered Accountants
(P. K. Garg) Partner
M. No. 083139FRN : 004745N
Dated: 30.05.2013Place: Ludhiana
450,031,400 2,375,518,751
- 2,825,550,151
- 40,000
2,049,207,301 -
206,477,802 -
1,149,046,050 549,073,355 504,948,234
- 7,284,342,893
2,542,274,817
98,290 1,592,700,716
- 4,135,073,823
202,500 -
20,796,064 1,024,525
4,157,096,912
- 329,733,086
1,859,194,108 63,738,900
874,579,887 -
7,284,342,893
450,031,400 2,504,746,379
- 2,954,777,779
95,000,000
350,000
2,786,072,148 - -
10,330,716
970,085,578 2,257,810,328
517,557,507 56,268,154
9,648,252,210
2,312,733,249 93,483
1,818,058,663 -
4,130,885,395 202,500
- 21,885,838
912,814 4,153,886,548
- 430,033,184
4,484,188,958 140,182,180 439,961,341
- 9,648,252,210
36
Jindal Cotex Limited
EQUITY AND LIABILITIESShareholder's FundsShare CapitalReserves and Surplus
Sub TotalShare Application Money pending allotment
Minority Interest
Non-Current LiabilitiesLong Term BorrowingsDeferred Tax Liabilities (Net)Other Long Term LiabilitiesLong Term Provisions
Current LiabilitiesShort term BorrowingsTrade PayablesOther Current LiabilitiesShort term ProvisionsTOTAL
ASSETS Non Current AssetsFixed assetsTangible AssetsIntangible assetsCapital Work in ProgressIntangible Assets under DevelopmentSub TotalNon Current InvestmentsDeferred Tax Assets (Net)Long Term Loans and AdvancesOther Non Current assetsSub TotalCurrent AssetsCurrent InvestmentsInventoriesTrade receiablesCash and Cash EquivalentsShort Term Loans and AdvancesOther Current AssetsTOTAL
I.1)
a)b)
2)
3)
4)a)b)c)d)
5)a)b)c)d)
II.
1) a)iiiiiiiv
b)c)d)e)
2)a)b)c)d)e)f)
NOTE NO.PARTICULARS 31.03.2013(Amount in Rs.)
31.03.2012
12
34.14.24.3
5678
9
10
1112
13141516
For and on behalf of the Board of Directors
(RAJINDER JINDAL)(SANDEEP JINDAL)
Chairman & Managing Director Director
PLACE : LUDHIANA DATE : 30.05.2013
(ANOOP KUMAR)
A.G.M.-Accounts (LALIT VIG)
Manager-Accounts
(ANIL MALHAN)Company Secretary
Significant Accounting Policies and Notes on Accounts 1 to 40
(RAJESH SHARMA)
Director
As per our report of even date attached For Aggarwal Garg & Co.
Chartered AccountantsFirm Regn. No. : 004745N
(PAWAN KUMAR GARG) PARTNER
M.No. 083139
CONSOLIDATED BALANCE SHEET AS AT 31st MARCH, 2013
37
Annual Report 2012-13
Revenue From Operations
Other Income
Total Revenue (I+II)
Expenses
Cost of Materials Consumed
Purchase of Stock in Trade
Changes in Inventories of Finished
goods work-in-progress and
Stock-In-Trade
Employee Benefits Expenses
Finance Costs
Depreciation and Amortization Exps.
Other Expenses
Total Expenses
Profit before exceptional and extraordinary items
and tax (III-IV)
Exceptional Items
Profit before extraordinary items and tax (V-VI)
Extraordinary Items
Profit Before Tax (VII-VIII)
Tax Expense:
Current Tax
Deferred Tax
Adjustment for earlier years tax
Sub Total
Profit/(Loss) for the period
(V-VI)
Earings per Equity Share:
Basic - In Rs.
Diluted - In Rs.
NOTE NO.PARTICULARS 31.03.2013(Amount in Rs.)
31.03.2012
I.
II.
III.
IV.
V.
VI
VII
VIII
IX
X
1)
2)
3)
XI
XII
1)
2)
17
18
19
20
21
22
23
24
25
26
6,569,234,781
110,519,515
6,679,754,296
2,249,653,154
3,413,996,893
(26,673,943)
140,347,137
408,612,797
171,174,584
322,007,294
6,679,117,915
636,380
-
636,380
-
636,380
-
-
-
-
-
636,380
0.01
0.01
4,476,144,963
222,540,771
4,698,685,734
2,698,850,736
1,388,588,090
89,991,840
113,317,830
232,627,347
125,403,348
219,236,258
4,868,015,448
(169,329,714)
-
(169,329,714)
-
(169,329,714)
-
-
-
2,471,418
2,471,418
(171,801,132)
(3.82)
(3.82)
CONSOLIDATED PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31st MARCH, 2013
For and on behalf of the Board of Directors
(RAJINDER JINDAL)(SANDEEP JINDAL)
Chairman & Managing Director Director
PLACE : LUDHIANA DATE : 30.05.2013
(ANOOP KUMAR)
A.G.M.-Accounts (LALIT VIG)
Manager-Accounts
(ANIL MALHAN)Company Secretary
Significant Accounting Policies and Notes on Accounts 1 to 40
(RAJESH SHARMA)
Director
As per our report of even date attached For Aggarwal Garg & Co.
Chartered AccountantsFirm Regn. No. : 004745N
(PAWAN KUMAR GARG) PARTNER
M.No. 083139
38
Jindal Cotex Limited
A. CASH FLOW FROM OPERATING ACTIVITIESNet Profit before tax
Adjustment For: -Depreciation and AmortisationForeign Exchange Fluctuation GainForeign Currency Translation ReserveInterest ReceivedInterest ExpenseProfit on sales of fixed assetsPrevious year Income Tax
Operating Profit before working capital Changes
Adjustment ForTrade & Other ReceivablesLoans and advancesInventories Trade and other Payables
NET CASH FLOW FROM OPERATING ACTIVITES
B. CASH FLOW FROM INVESTING ACTIVITIESPurchase of Fixed AssetsSale of Fixed AssetsLong Term Loan and Advances
NET CASH FLOW FROM INVESTING ACTIVITES
C. CASH FLOW FROM FINANCING ACTIVITIESProceeds from long term borrowingsProceeds from Short term borrowingsOther Long Term ProvisionsForeign Exchange Flucation GainInterest ReceivedInterest ExpenseMisc. ExpensesShare Application Money/Member Contribution ReceivedNet Proceeds from Issue of Equity Shares
NET CASH FLOW FROM FINANCING ACTIVITIES
Net increase/(decrease) in cash & Cash equivalents
Cash and Cash Equivalent at beginning of year
Cash and Cash Equivalent at the end of year
636,380
171,174,584 (94,610,786)
2,311,248 (15,908,729) 408,612,797
8,978 -
472,224,472
(2,624,994,850) 434,618,546
(100,300,098) 1,777,614,400
(40,837,529)
(167,111,491) 264,197
(1,089,774)
(167,937,068)
530,387,044 (178,960,471)
10,330,716 94,610,786 15,908,729
(408,612,797) (36,129)
221,590,000 -
285,217,878
76,443,280
63,738,900
140,182,180
PARTICULARS 31.03.2013(Amount in Rs.)
31.03.2012
(169,329,714)
125,403,348 (176,352,645)
4,188,882 (44,505,329) 232,627,347 (1,275,076) (2,471,418)
(31,714,605)
(1,516,527,936) (383,708,202)
193,849,776 638,482,619
(1,099,618,349)
(883,685,252) 5,879,259
(8,798,660) -
(886,604,652)
76,524,646 358,980,448
176,352,645 44,505,329
(232,627,347) (207,836)
- 40,000
423,567,885
(1,562,655,115)
1,626,394,015
63,738,900
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH, 2013
For and on behalf of the Board of Directors
(RAJINDER JINDAL)(SANDEEP JINDAL)
Chairman & Managing Director Director
PLACE : LUDHIANA DATE : 30.05.2013
(ANOOP KUMAR)
A.G.M.-Accounts (LALIT VIG)
Manager-Accounts
(ANIL MALHAN)Company Secretary
(RAJESH SHARMA)
Director
As per our report of even date attached For Aggarwal Garg & Co.
Chartered AccountantsFirm Regn. No. : 004745N
(PAWAN KUMAR GARG) PARTNER
M.No. 083139
39
Annual Report 2012-13
A. Basis of preparation of consolidated financial statements:
The accompanying consolidated financial statements are prepared and presented under the historical cost convention on the accrual basis of accounting and comply with the Accounting Standards prescribed by the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the companies Act, 1956 to the extent applicable.
Principles of consolidation
a) The consolidated financial statement relates to Jindal Cotex Limited (The Company) and its subsidiary companies (the group). The consolidated financial statements have been prepared on the following basis.
i) In respect of subsidiary companies, the financial statements have been consolidated on a line-by-line basis by adding together the book values of like items of assets, liabilities, income and expenses, after as far as possible eliminating intra-group balances and intra-group-transactions resulting in unrealized profits or losses in accordance with Accounting Standard 21-Consolidated Financial Statements prescribed by companies (Accounting Standards) Rules, 2006.
ii) The consolidated financial statements are prepared using uniform accounting policies for like transaction and other events in similar circumstances and are presented as the company's separate financial statements.
iii) The subsidiary co's considered in consolidated financial statements are as below:
1.
2.
3.
4.
5.
6.
Jindal Medicot Limited
Jindal Specialty Textiles Limited
Jindal Infrabiz Limited
Jindal Metalex Limited (Formerly known as Jindal Foods & Beverages Limited)
Jindal International FZE
Himachal Textile Park Limited
India
India
India
India
U.A.E.
India
100%
100%
100%
100%
100%
90.79%
Sr.No. Name of the Entity Country of Incorporation
Proportion of ownership
stinterest at 31March 2013
b) Going Concern Convention
The accounts of the company have been prepared on going concern basis.
B. Revenue Recognition:
a) Sales:
Sales comprise sale of goods, services and export incentives net of excise duty, sales tax/VAT and trade discount. Revenue from sale of goods is recognized:
i) When all the Significant risks and rewards of ownership are transferred to the buyer and the company retains no effective control of the goods transferred to a degree usually associated with ownership; and
ii) No significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of goods.
b) Interest:
Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.
c) Export Benefits/Incentive:
Revenue in respect of the above benefit is recognized on post export basis.
d) Insurance and Other Claims:
Revenue in respect of claims is recognized when no significant uncertainty exists with regard to the amount to be realized.
C. Retirement/ Other Employee Benefits
(a) Gratuity
Provision for gratuity liability to employees is made on the basis of actuarial valuation as at the close of the year.
(b) Provident Fund
Contribution to Provident Fund is made in accordance with the provisions of the Employee's Provident Fund and Miscellaneous Provisions Act, 1952 and charged to the Profit & Loss Account.
SIGNIFICANT ACCOUNTING POLICIES
(c) Leave with wages
Provision for leave with wages is made on the basis of leave accrued to the workers during the financial year.
D. Fixed Assets
Fixed assets are stated at the values at which they are acquired, less accumulated depreciation and cenvat credit if availed. The cost of fixed assets included interest on borrowing attributable to acquisition of fixed assets up to the date of commissioning of the assets and other incidental expenses incurred up to that date. Machinery spares whose use is expected to be irregular are capitalized and depreciated over the useful life of the principal item of asset.
E. Intangible assets
Intangible assets are stated at cost less accumulated amount of amortization.
F. Capital Work in Progress
Projects under commissioning and other Capital Work in Progress are carried at Cost, comprising direct cost, related incidental expenses, indirect expenditure and attributable interest related to that project.
G. Impairment of Assets
At each balance sheet date an assessment is made whether any indication exists that an asset has been impaired. If any such indication exists, an impairment loss i.e. the amount by which carrying amount of an asset exceeds its recoverable amount is provided in the books of accounts.
H. Depreciation
Depreciation is provided in accordance with and in the manner and at the rates specified in schedule XIV to the Companies Act, 1956 as under:
a) on written down value basis for assets acquired prior to 06/03/2006 and
b) on straight line basis for assets acquired after that date.
I. Foreign Currency Conversion/Translation
Foreign Currency Transactions are accounted at the exchange rate prevailing on the date of the transactions. Foreign exchange monetary items outstanding as at the B/S date are reported using the closing rate, Gains & Losses resulting from the settlement of such transactions & translation of monetary assets and liabilities denominated in foreign currencies are recognized in the Profit & Loss A/c.
In case of a foreign subsidiary, being a Non Integral operation the long term Monetary items are restated at the exchange rate prevailing on the reporting date and the difference if any arising thereon is taken in for currency translation reserve and the short term monetary items are also restated at the exchange rate prevailing on the reporting date and the difference arising thereupon is recognized in Profit & Loss A/c
J. Borrowing Costs
Borrowing cost attributable to construction periods is capitalized. Other borrowing costs are recognized as an expense in the period in which they are incurred.
K. Investments
Long term investments are carried at cost, less provision for diminution if it is of permanent nature in value of such investments.
L. CENVAT Credit
The CENVAT Credit of excise duty if any availed on inputs and capital goods is accordingly reduced from the purchase cost of related inputs or capital goods as the case may be.
M. Accounting for Taxes on Income
Provision for tax if any, is based on the assessable profits computed in accordance with the provisions of Income Tax Act 1961 and the Accounting Standard 22 issued by the Institute of Chartered Accountants of India.
N. Cash Flow Statement
The company has prepared the Cash Flow Statement using the Indirect Method in compliance of Accounting Standard issued by The Institute of Chartered Accountants of India (AS-3).
O. Government Grants
Government Grants available to the enterprise are accounted where there is a reasonable assurance that enterprise will comply with the condition attached to them.
In accordance with the Accounting Standard 12 " Accounting for Government Grants" - Grant in the nature of capital subsidy are credited to the Capital Reserve and shown under the head Reserve & Surplus.
P. Segmental Reporting
The company is principally engaged in the business of textiles (mainly manufacturing of yarn of different kinds and trading of knitted cloth & acrylic top etc.), the project of wind mill (for generation of electricity for re-sale) and trading of iron. The company is also operating in different geographical segments. The relevant information about these segments are given as part of Notes on Accounts.
40
Jindal Cotex Limited
SIGNIFICANT ACCOUNTING POLICIES
41
Annual Report 2012-13
PARTICULARS 31.03.2013(Amount in Rs.)
31.03.2012
stNotes on Financial Statements for the year ended 31 March, 2013
SHAREHOLDERS HOLDING MORE THAN 5% SHARES
NAME OF PERSON
JP Morgan Chase Bank NA
Ramesh Kumar Jindal
Rajinder Kumar Jindal
Yash Paul Jindal
% P.Y.
31.03.2012
44
8
8
7
No. OF SHARES
31.03.2012
19,820,000
3,642,216
3,606,576
3,139,218
No. OF SHARES
31.03.2013
13580000
2886008
2830926
2711918
% C.Y.
31.03.2013
30
6
6
6
As per records of the Company, including its Register of Members and other declarations received from them regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares
31.03.20134,801,596 (Equity shares issued as Bonus shares on 04.07.2008)
Rights, preferences and restrictions attaching to each class of shares
"Equity Shares: The company has only one class of equity shares having par value of Rs. 10/- per share. Each holders of equity shares present is entitled to have one vote upon show of hands and upon a poll every member entitled to vote and present in person or by proxy shall have one vote, for every share held by him. "
The Company in general meeting may declare a dividend to be paid to the members according to their respective rights and interests in the profits and may fix the time for payment
Dividend shall be paid by the Company in respect of any share only to the registered holder of such share or to his order or to his banker.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the realized value of the assets of the Company, remaining after payment of all preferential dues. The distribution will be in proportion to the number of equity shares held by the shareholders.
31.03.20124,801,596
NOTE NO. 1
SHARE CAPITAL
AUTHORIZED CAPITAL
AT THE BEGINNING OF THE YEAR
60000000 EQUITY SHARES OF RS. 10/- EACH(PREV.
YEAR 60000000 EQUITY SHARES OF RS. 10/- EACH)
INCREASE DURING THE YEAR
NIL (PREV. YEAR NIL)
AT THE END OF THE YEAR
60000000 EQUITY SHARES OF RS. 10/- EACH(PREV.
YEAR 60000000 EQUITY SHARES OF RS. 10/- EACH)
ISSUED CAPITAL
AT THE BEGINNING OF THE YEAR
45003140 EQUITY SHARES OF RS. 10/- EACH(PREV.
YEAR 45003140 EQUITY SHARES OF RS. 10/- EACH)
INCREASE DURING THE YEAR
NIL (PREV. YEAR NIL)
AT THE END OF THE YEAR
45003140 EQUITY SHARES OF RS. 10/- EACH(PREV.
YEAR 45003140 EQUITY SHARES OF RS. 10/- EACH)
SUBSCRIBED AND PAID UP CAPITAL
AT THE BEGINNING OF THE YEAR
45003140 EQUITY SHARES OF RS. 10/- EACH(PREV.
YEAR 45003140 EQUITY SHARES OF RS. 10/- EACH)
INCREASE DURING THE YEAR
NIL (PREV. YEAR NIL)
AT THE END OF THE YEAR
45003140 EQUITY SHARES OF RS. 10/- EACH(PREV.
YEAR 45003140 EQUITY SHARES OF RS. 10/- EACH)
600,000,000
-
600,000,000
450,031,400
-
450,031,400
450,031,400
-
450,031,400
600,000,000
-
600,000,000
450,031,400
-
450,031,400
450,031,400
-
450,031,400
42
Jindal Cotex Limited
PARTICULARS 31.03.2013(Amount in Rs.)
31.03.2012
stNotes on Financial Statements for the year ended 31 March, 2013
264,572,637 (171,801,132)
- 92,771,505
2,278,558,364 -
2,278,558,364 - -
2,278,558,364
- 4,188,882 4,188,882
- -
--
2,375,518,751
2,435,036,268 7,655,897
2,442,692,164
2,593,459 -
93,178,000
247,608,524
- -
343,379,984
2,786,072,148
1,915,101,376 -
1,915,101,376
6,271,009 -
42,110,000
40,724,916
45,000,000 -
134,105,925
2,049,207,301
2012-13 58,000,000
1,000,000 117,270,157 16,069,826
3,765,974 23,066,660 13,735,907 10,700,000
4,000,000
2011-12 22,490,000
- -
12,054,245 66,360
3,379,951 2,734,360
--
NOTE NO. 2RESERVES AND SURPLUSSurplus in Profit and Loss AccountAs per Last Balance SheetAdd Profit during the yearLess Transfer to General ReserveClosing Balance
Securities Premium reserveAs per Last Balance SheetAdd:- On issue of Shares/ GDRs
Less: Preliminary Expenses AdjustedLess:GDR Expenses AdjustedLess:Foreign Currency fluctuation for GDRClosing Balance
Foreign Currency Translation ReserveAs per Last Balance SheetAdd Transfer from Foreign Exchange FluctuationClosing Balance
Capital ReserveGrant Received from Ministry of Textile, New Delhi
Members Contribution toward Textile ParkMembership Contribution
Total Reserves and Surplus
NOTE NO. 3LONG TERM BORROWINGSI Secured1 Term Loans from Banks*2 Term Loans from Others (Secured)
Total Secured Long Term Borrowings (I)
II Unsecured1 Term Loans from Banks2 Deffered Payment Liabilities3 Deposits **4 Loans and Advances from related parties #a Jindal Holdings & Investment Ltd.b Jindal Cycle (P) Ltd.c Jindal Fine Industriesd Sh. Yash Paul Jindale Sh. Rajinder Jindalf Sh. Sandeep Jindalg Sh. Ramesh Jindalh Smt. Santosh Jindali Sh. Jagdish Rai Jindal5 Other Loans and Advancesa Intercorporate loansb Others
Total Unsecured Long Term Borrowings ( II )
Total Long Term Borrowings (I+II)
92,771,505 636,380
- 93,407,885
2,278,558,364 -
2,278,558,364 - -
2,278,558,364
4,188,882 2,311,248 6,500,130
116,280,000 116,280,000
10,000,000 10,000,000
2,504,746,379
* Maturity Profile of Secured Term Loans are as set out below:
Current YearPrev Year
1-2 years
531626428360330954
2-3 years
517412124361987830
3-5 years
1055803612771099973
beyond 5 years
337850000421682619
**Maturity Profile of Deposits are as set out below:
400110006015000
1-2 years
5316700036095000
2-3 years
Current YearPrev Year
43
Annual Report 2012-13
stNotes on Financial Statements for the year ended 31 March, 2013
NOTE NO. 4.1DEFERRED TAX LIABILITY ( NET )
Liability on account of Timing Difference Depreciation
TOTAL
123,990,929
123,990,929
-
64,934,437
64,934,437
-
NOTE NO. 4.2OTHER LONG TERM LIABILITIESTrade Payables ( Long Term )Others (Capital Goods)
TOTAL
- 206,477,802
206,477,802
- -
-
The Company has not received any communication from any of its suppliers/ service providers in response to letters issued by the Company, confirming whether or not they are registered under the Micro, Small and Medium Enterprises Development Act, 2006. In the absence of any positive confirmation from the suppliers/ service providers, the information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 could not be determined.
NOTE NO. 4.3LONG TERM PROVISIONS1 Provision for Employee Benefitsa Gratuityb Leave with wages payable
Sub Total2 Others ( Long Terms )
TOTAL
6,829,597 3,501,119
10,330,716 -
10,330,716
--- - -
With reference to Secured Term Loans and the amount Current Maturities of such Secured Loans.a Term Loan of Rs 532833127 (Prev. Year Rs 381098000) from OBC, Rs 162698455 (Prev. Year Rs 162994899 )from Allahabad Bank Rs 49387546 (Prev. Year
Rs. 12121302) from Corporation Bank are secured by way of Ist Pari Passu charge on the Fixed Assets of the Company and 2nd charge on the Current Assets of the Company. Further these Loans are Secured by way of equitable mortgage of Factory Land and Building of the company situated at VPO Jugiana, G.T. Road , Ludhiana and at Village Mandiala Kalan, Tehsil Khanna, Distt. Ludhiana
b Term Loan of Rs 23277660 (Prev. Year. Rs. 28593441) From Punjab and Sind Bank is secured by way of exclusive charge on Windmill purchased out of the Term Loan.
c Term Loan of Rs 34654052 (Prev. Year Rs. 38676579) from Central Bank Of India is secured by way of equitable mortgage of Land in the name of the Company situated at village Mandiala Kalan, Tehsil Khanna, Distt. Ludhiana
d Loans of Rs 20880580 (Prev. Year Rs. 19622102) are secured by way of hypothecation of respective vehicles.e Term borrowings from The Catholic Syrian Bank Limited of Rs 180630582 (Prev. Year Rs. 151697269) are Secured by equitable Mortgage of Commercial Plot in
the name of M/s Jindal Cycles Pvt. Ltd and Personal guarantees of promoter directors (Subject to approval by bank)f Term Loan of Rs 506372381/- from SBI (Prev. Year - Rs.397434255/- ), Rs 186718131/- from Bank of Baroda (Prev. Year - Rs. 182132205/- ) are secured by way
of Ist Pari Passu charge on the Fixed Assets of the Company and 2nd charge on the Current Assets of the Company. Equitable Mortgage of Leasehold rights of Land and Building Situated at Upmahal , Ramnagar,Thathal Teh.Amb, Dist Una. Further these Limits are Secured by way of equitable mortgage of Land and Building in the name of Himachal Textile Park Limited.
g Rs 65747735 from Central Bank of India (Prev. Year - 61186372) is secured by way of Ist Pari Passu charge on the Fixed Assets of the Company and 2nd charge on the Current Assets of the Company.
h Term Loan of Rs. 607619089/- (Prev. Year Rs 608041975/-) from PNB, Rs 201633407/- (Prev.Year 204694116) from Corporation Bank, Rs.204804348/- (Prev. Year Rs. 204986792/-) from Allahabad Bank and Funded Interest Term Loan of Rs. 61041061/- (Prev. Year Rs Nil ) from PNB, Rs19099038/- (Prev.Year Nil) from Corporation Bank, Rs.16764398/- (Prev. Year Rs. Nil) from Allahabad Bank are secured by way of Ist Pari Passu charge on the Fixed Assets of the Company and 2nd charge on the Current Assets of the Company. Equitable Mortgage of Leasehold rights of Land and Building Situated at Upmahal , Ramnagar,Thathal Teh.Amb, Dist Una. Further these Limits are also Secured by way of equitable mortgage of Land and Building in the name of Himachal Textile Park Limited. Amt. Of default in repayment of Loan - 44241861 (Prev. yr. - 46636000) Default in payment of Interest-34646942 (Prev. yr.-31671694) Period of continuing default in repayment of Loan - 1-2 months (Prev.yr. - 1 monthl) In payment of Interest-1-3 months (Prev. yr.- 1-3 months)All Secured Loans except car loans have also been guaranteed by following directors of the Company. i Sh. Sandeep Jindalii Sh. Yash Paul Jindaliii Sh. Rajinder jindaliv Sh. Ramesh Jindal# With reference to loans and advances from related partiesAll the Loans are repayable after 12 months from the date of squaring up bank dues. However the company reserve the right to prepay it.(Prev. yr. also all the Loans are repayable after 12 months from the date of squaring up bank dues. However the company reserve the right to prepay it.)
Less: Deferred Tax Asset arising on account of timing difference For expenses allowable for tax purposes when paid, miscellaneous Expenditure incurred but allowed in future, unabsorbed losses, And MAT credits available (but restricted to the extent of deferred Tax liability as a matter of prudence)
44
Jindal Cotex Limited
PARTICULARS 31.03.2013(Amount in Rs.)
31.03.2012
stNotes on Financial Statements for the year ended 31 March, 2013
NOTE NO. 6TRADE PAYABLESDue to Micro, Small and Medium EnterprisesDue to OthersTOTAL
- 2,257,810,328 2,257,810,328
- 549,073,355 549,073,355
The Company has not received any communication from all of its suppliers/ service providers in response to letters issued by the Company, confirming whether or not they are registered under the Micro, Small and Medium Enterprises Development Act, 2006. In the absence of any positive confirmation from the suppliers/ service providers, the information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 could not be determined.
NOTE NO. 7OTHER CURRENT LIABILITIESa Current Maturities of Long - Term Debt b Deposits maturing within next 12 monthsc Interest Accured but not due on Borrowingsd Interest Accured and due on Borrowingse Advances from Customersii) Cheque under reconciliationiii) Securities received from customersf Other Payables
TOTAL
393,161,143 38,843,000
- 46,717,916
3,528,861 27,397,595
2,250,000 5,658,992
517,557,507
386,480,662 20,998,000
- 17,641,726
647,267 34,961,684
- 44,218,895
504,948,234
NOTE NO. 8SHORT TERM PROVISIONSa Provisions for Employee benefitsb Others
TOTAL
30,064,895 26,203,259
56,268,154
- -
-
NOTE NO. 5SHORT TERM BORROWINGSI Secured
Loans Repayable on Demand/Working Capital Loans1 From Banks2 Loans repayble on Demand - Others (Secured)
Total Secured Short Term Borrowings (I)II Unsecured1 Loans repayable on Demanda From Banksb From other parties2 Loans and Advances from related parties
Sandeep Jindal3 Deposits4 Other Loans and Advancesa Intercorporate loansb Others
Total Unsecured Short Term Borrowings ( II )
Total Short Term Borrowings (I+II)
945,376,963 -
945,376,963
4,958,284 - -
126,280 - -
19,624,052 -
24,708,616
970,085,578
1,149,046,050 -
1,149,046,050
- - -
- - -
-
1,149,046,050
a Short Term Borrowings of Rs 622258954 (Prev. Year Rs. 645475710) are Secured by way of 1st charge on Current Assets of the Company and 2nd charge on the fixed assets of the Company. Further these Limits are secured by way of equitable mortgage of Factory Land and Building of the company situated at VPO Jugiana, G.T. Road , Ludhiana and at Village Mandiala Kalan, Tehsil Khanna, Distt. Ludhiana and Personal guarantees of promoter directors.
b Short Term Borrowings of Rs 113118009 from State Bank of India (Prev. Year - 186359244 ) are Secured by way of 1st charge on Current Assets of the Company and 2nd charge on the fixed assets of the Company. Equitable Mortgage of Leasehold rights of Land and Building Situated at Upmahal , Ramnagar,Thathal Teh.Amb, Dist Una. Further these Limits are Secured by way of equitable mortgage of Land and Building in the name of Himachal Textile Park Limited.
c Short Term Borrowings of Rs 40,000,000 from Punjab & Sind Bank (Prev. Year - 40547567 ) are Secured by way of 1st charge on Current/ Fixed Assets Purchased by the Company in Trading division and 2nd charge on the Current/ Fixed assets of the Company in Manufacturing unit. Equitable Mortgage of Land in the name of Jindal Cotex Limited Situated at village Mandiala Kalan , Teh. Khanna, Dist. Ludhiana.
d Short Term Borrowings of Rs. 176406633/- (Prev. Year Rs124966260/-) are from Punjab National Bank Secured by way of 1st charge on Current Assets of the Company and 2nd charge on the fixed assets of the Company. Equitable Mortgage of Leasehold rights of Land and Building Situated at Upmahal , Ramnagar,Thathal Teh.Amb, Dist Una. Further these Limits are Secured by way of equitable mortgage of Land and Building in the name of Himachal Textile Park Limited.
e Amt. Of default in repayment of Loan - Rs. 39595143.73 (Prev. yr. - Nil) Default in payment of Interest-NIL (Prev. yr.-NIL)
45
Annual Report 2012-13
stNotes on Financial Statements for the year ended 31 March, 2013
NOTE NO. 9
FIXED ASSET
NOTE NO. 10
NON CURRENT INVESTMENTS
I Trade Investments ( Long Term )
Investment in Equity Instruments
(Unquoted- Fully Paid Up )
Long term Investment at cost
Unquoted --- Other than Trade
250 Equity Shares of Rs 10/-
in Shivalik Solid Waste Management Ltd.
Quoted Investments - Other than Trade
BARODA PIONEER PSU EQUITY FUND
(20,000 units of Rs. 10 each)
Sub Total I
-
2,500
200,000
202,500
-
2,500
200,000
202,500
Particulars
Gross Block
Depreciation Net Block
Value at the beginning
Addition during the
year
Other Adjustments
Deduction during the
year
Value at the end
Value at the beginning
WDV as on 31.03.2013
Sr. No. Addition
during the year
Deduction during the
year
Value at the end
WDV as on 31.03.2012
I123456789
10111213
II
III
IV
226824977 346214582 206720512
2043474621 1334699
77898631 33072
4244162 4745169
43933971 5177810
11666609 65748035
3,038,016,850
1,569,504,974
119,700
119,700
119,700
1,592,700,716
1,592,700,716
2,192,696,473
-
-
-
4,630,837,266
3,762,321,147
-5,301,003
154,454 15,939,902
0.00 2,196,958
0.000.00
268,362 0.00
341,307 37,557
-
24,239,544
1,483,730,505
14,000
14,000
-
236,057,947
236,057,947
2,021,994,892
-
-
-
260,311,491
3,505,725,397
82,500,000 - - - - - - - - - - - -
82,500,000
-
-
-
-
-
-
1,421,999,135
-
-
-
82,500,000
1,421,999,135
- - -
290,168 - - - - - - - - -
290,168
15,218,629
-
-
-
10,700,000
-
-
-
-
-
290,168
15,218,629
144,324,977 351,515,584 206,874,966
2,059,124,355 1,334,699
80,095,588 33,072
4,244,162 5,013,531
43,933,971 5,519,117
11,704,166 65,748,035
2,979,466,225
3,038,016,850
133,700
133,700
119,700
1,818,058,663
1,818,058,663
1,592,700,716
-
-
-
4,797,658,589
4,630,837,266
- 36,046,902 16,266,693
392,611,811 604,616
16,680,691 8,946
1,620,095 1,298,021 9,914,647 1,202,932 5,591,209
13,895,470
495,742,033
381,068,574
21,410
21,410
4,310
-
-
-
-
-
-
495,763,443
381,072,884
- 6,576,976 5,954,494
139,831,215 47,689
8,676,699 3,142
419,109 300,387
3,865,949 227,478
1,633,303 3,471,496
171,007,937
125,287,904
18,807
18,807
17,100
-
-
-
-
-
-
171,026,744
125,305,004
- - -
16,993 - - - - - - - - -
16,993
10,614,446
-
-
-
-
-
-
-
-
-
16,993
10,614,446
- 42,623,878 22,221,187
532,426,033 652,305
25,357,390 12,088
2,039,204 1,598,408
13,780,596 1,430,410 7,224,512
17,366,966
666,732,976
495,742,032
40,217
40,217
21,410
-
-
-
-
-
-
666,773,193
495,763,442
144,324,977 308,891,706 184,653,779
1,526,698,323 682,394
54,738,198 20,984
2,204,958 3,415,123
30,153,375 4,088,707 4,479,655
48,381,069
2,312,733,249
2,542,274,817
93,483
93,483
98,290
1,818,058,663
1,818,058,663
1,592,700,716
-
-
-
4,130,885,395
4,135,073,823
226,824,977 310,167,680 190,453,819
1,650,862,811 730,083
61,217,940 24,126
2,624,067 3,447,148
34,019,324 3,974,878 6,075,400
51,852,565
2,542,274,817
1,188,436,399
98,290
98,290
115,390
1,592,700,716
1,592,700,716
2,192,696,473
-
-
-
4,135,073,823
3,381,248,262
Tangible AssetsLandFactory BuildingBuildingPlant and EquipmentWeigh Bridge & ScalesElectric InstallationsScooterVehiclesFurnitures & FixturesCarsOffice EquipmentComputer Wind Mill
SUB TOTAL (A)
TOTAL-PREVIOUS YEAR
Intangible Assets
SUB TOTAL (B)
TOTAL-PREVIOUS YEAR
Capital Work-in-progress
SUB TOTAL (C)
TOTAL-PREVIOUS YEAR
Intangible Assets Under Development
SUB TOTAL (D)
TOTAL-PREVIOUS YEARTotal [A + B + C + D] (Current Year)
(Previous Year)
46
Jindal Cotex Limited
II Other Investments ( Long Term )
Investment in Equity Instruments
(Unquoted- Fully Paid Up )
Sub Total II
Total Long Term Investments ( I+II)
Aggregate Amount of Quoted Investments
Market Value of Quoted Investments
Aggregate Amount of Unquoted Investments
Aggregate Provision for diminution in Value of Investments *
Note : All investments are valued at cost.
* Nil as they are not of Permanent Nature
-
-
202,500
200,000
132,400
2,500
-
-
-
202,500
200,000
146,600
2,500
-
PARTICULARS 31.03.2013(Amount in Rs.)
31.03.2012
stNotes on Financial Statements for the year ended 31 March, 2013
NOTE NO. 11LONG TERM LOANS & ADVANCES (Unsecured and Considered Good)a Security Deposits
Earnest Money DepositOther Deposit
b Others Loans & Advances
TOTAL
21,610,088
275,750
21,885,838
20,796,064
-
20,796,064
NOTE NO. 12OTHER NON-CURRENT ASSETS
Preliminary ExpensesPreoperative Expenses
TOTAL
668,849 243,965
912,814
816,689 207,836
1,024,525
NOTE NO. 13INVENTORIES(As taken, valued and certified by the management)a Raw Materialsb Work in Progressc Finished Goodsd Stock In Tradee Store & Sparesf Others (Scrap/Waste)
TOTAL
105,893,102 38,072,824
240,852,465 7,397,585
32,453,475 5,363,733
430,033,184
42,743,345 43,223,555
103,912,787 111,093,214
21,977,075 6,783,109
329,733,086
Inventories are valued at cost or net realizable value, whichever is lower. The cost in respect of the various items of inventory is computed as under:
- In case of raw material at actual cost determined on FIFO basis plus direct expenses.
- In case of Stores and spares at weighted average cost.
- In case of Work in process at raw material cost plus appropriate proportion of direct labour and overheads.
- In case of finished goods at raw material cost plus conversion cost and appropriate proportion of overheads.
47
Annual Report 2012-13
NOTE NO. 14
TRADE RECEIVABLES
(Unsecured and Considered Good)
a Outstanding for a period exceeding six months
from the date they are due for payment
b Outstanding for a period not exceeding six months
from the date they are due for payment
TOTAL
49,172,855
4,435,016,103
4,484,188,958
59,866,489
1,799,327,619
1,859,194,108
NOTE NO. 15
CASH AND CASH EQUIVALENTS
a Balance with Banks
b Cash in Hand
c Fixed Deposit with banks
d Balance with foreign Banks (Euram Bank)
e Fixed Deposit as Margin money
TOTAL
91,082,617
14,966,300
41,039
-
34,092,225
140,182,180
15,925,745
13,164,380
-
-
34,648,775
63,738,900
NOTE NO. 16
SHORT -TERM LOANS AND ADVANCES
(Unsecured and Considered Good)
a Loans and advances to related parties (Short Term)
b Others
Advances recoverable in cash or in kind or for value to
be received
i) Advance to Suppliers
ii) Advance Income Tax - Net of Provision
iii) Excise & Service Tax Balance
iv) Other Advances
TOTAL
Loans and advances include the amounts due from
Directors-either severally or jointly
Other officers of the Company-either severally or jointly
Firm in which director is a partner
Private company in which directors is a member
210,996,041
4,040,161
60,378,812
164,546,328
439,961,341
-
-
-
-
101,013,590
433,562
84,047,100
689,085,636
874,579,887
-
-
-
-
PARTICULARS 31.03.2013(Amount in Rs.)
31.03.2012
stNotes on Financial Statements for the year ended 31 March, 2013
48
Jindal Cotex Limited
NOTE NO. 17
REVENUE FROM OPERATIONS
a Sale of Products - Inclusive of Excise Duty
b Sale of Services
c Other Operating Revenue
(Sale of DEPB)
Total Revenue
Less: Excise Duty
TOTAL
NOTE NO. 18
OTHER INCOME
Interest Income
Foreign Exchange Fluctuation
Foreign Exchange Fluctuation (Export)
Profit on sale of fixed assets
Misc income
TOTAL
NOTE NO. 19
COST OF MATERIAL CONSUMED
Opening Stock of Raw Materials…. I
Purchase of Raw Materials…. II
Closing Stock Raw Materials…..III
Cost of Raw Material Consumed ( I+II-III )
NOTE NO. 20
PURCHASES OF STOCK IN TRADE
Purchases
Total Purchase
NOTE NO. 21
CHANGES IN INVENTORIES OF FINISHED GOODS
WORK-IN-PROGRESS & STOCK IN TRADE
Opening Stock of Finished Goods
Opening Stock of Work-in-Progress
Opening Stock of Stock-in-Trade
Opening Stock of Waste
Sub Total A
Closing Stock of Finished Goods
Closing Stock of Work-in-Progress
Closing Stock of Stock-in-Trade
Closing Stock of Waste
Sub Total B
TOTAL ( A-B )
PARTICULARS 31.03.2013(Amount in Rs.)
31.03.2012
stNotes on Financial Statements for the year ended 31 March, 2013
6,567,693,965
-
3,637,214
6,571,331,179
2,096,398
6,569,234,781
15,908,729
94,610,786
-
-
-
110,519,515
42,743,345
2,312,802,911
105,893,102
2,249,653,154
3,413,996,893
3,413,996,893
103,912,785
43,223,555
111,093,214
6,783,109
265,012,664
240,852,465
38,072,824
7,397,585
5,363,733
291,686,607
(26,673,943)
4,471,220,688
-
5,139,996
4,476,360,684
215,721
4,476,144,963
44,505,329
172,643,412
3,709,233
1,275,076
407,721
222,540,771
156,665,758
2,584,928,323
42,743,345
2,698,850,736
1,388,588,090
1,388,588,090
320,141,081
18,747,296
-
16,116,126
355,004,504
103,912,785
43,223,555
111,093,214
6,783,109
265,012,664
89,991,840
49
Annual Report 2012-13
NOTE NO. 22
EMPLOYEE BENEFIT EXPENSE
Salary, Wages & Bonus
Contribution to Provident & other Funds
Employee Welfare
Recruitment Expenses
Director Remuneration
Notice Pay
Other Personnel Expenses
TOTAL
NOTE NO. 23
FINANCE COSTS
Interest on Bank Borrowings
Interest on Purchase
Bank Charges
Interest on Unsecured Loans
Interest on F.D.Rs
Fixed Deposit Scheme Expenses
Others
TOTAL
NOTE NO. 24
DEPRECIATION AND AMORTIZATION EXPENSE
Depreciation
Preliminary Expenses Written Off
TOTAL
NOTE NO. 25
OTHER EXPENSES
Manufacturing Expenses
Power & Fuels
Packing Materials Consumed
Building Repair & Maintenance
Machinery Repair & Maintenance
Electric Repair & Maintenance
Production Expenses
Rent - Air compressor
Sub Total I
Selling & Distribution Expenses
Advertisement
Clg & Forwarding charges
Sales Commission
Export Expenses
Freight & Octroi Outward
Commission on export
Freight & Cartage
Sales Promotion
Rebate & Discount
Sub Total II
PARTICULARS 31.03.2013(Amount in Rs.)
31.03.2012
stNotes on Financial Statements for the year ended 31 March, 2013
125,245,958
10,258,988
2,018,081
191,092
600,000
356,216
1,676,802
140,347,137
351,698,883
15,287,111
11,948,949
10,865,588
13,897,574
2,642,365
2,272,327
408,612,797
171,026,744
147,840
171,174,584
210,617,813
34,898,244
584,744
27,765,385
4,138,136
871,741
-
278,876,063
-
-
2,996,531
8,303,766
825,711
25,665
185,020
885,086
3,023,181
16,244,961
95,051,428
8,660,607
3,030,192
151,079
5,700,000
433,537
290,987
113,317,830
221,365,136
5,228,955
5,646,095
259,660
127,500
-
-
232,627,347
125,255,508
147,840
125,403,348
137,873,183
14,783,344
931,393
21,108,152
2,750,289
2,092,797
29,888
179,569,045
630,848
-
639,957
2,807,522
296,846
5,756,118
-
203,261
-
10,334,552
50
Jindal Cotex Limited
AUDITOR'S EXPENSEAuditor's RemunerationAudit FeeFor Tax AuditReimbursement of out of Pocket Exps.TotalOTHERSAdvertisement & PublicityVehicle Repair & MaintenanceCar Repair & MaintenanceScooter Repair & MaintTravelling ExpensesWind Mill ExpensesTelephone ExpensesInternet ExpencesLoading & Unloading ChargesPrinting & StationeryPostage & TelegramLocal ConveyanceLegal & Professional ChargesERP Implementation ChargesMeeting ExpensesLease RentRent Worker Colony (U-II)RentInsurance Godown Rent Annual Maint Chgs/ Wind Mill AMCRevenue StampsHorticultural ExpensesGeneral ExpensesFestival ExpensesFees & Taxes/ SubscriptionsEntertainment ExpensesDirector Travelling ExpensesCharity & DonationComputer Repair & MaintenanceLoss on Sale of Fixed AssetsBooks & PeriodicalsService Tax Share Trf & Listing FeesInterest on TDS/TCSGuest House ExpsOther Expenses
Sub Total III
TOTAL OF OTHER EXPENSESNOTE NO. 26EARNINGS PER SHAREI) Net Profit after tax as per Statement of Profit & Loss
attributable to Equity Shareholders ii) Weighted Average number of equity shares used as
denominator for calculating EPSiii) Basic Earnings per shareiv) Diluted Earnings per sharev) Face Value per equity share
PARTICULARS 31.03.2013(Amount in Rs.)
31.03.2012
stNotes on Financial Statements for the year ended 31 March, 2013
401,968 47,472 41,220
490,660
363,519 698,743
1,331,966 2,945
2,715,533 -
1,729,995 411,996
2,006,738 1,063,472
674,651 494,126
2,961,353 180,824
- 861,177
--
3,589,004 60,000
1,514,479 8,720 8,360
120,823 818,497
2,334,632 462,797
- 55,500
159,314 8,978 4,347
381,485 264,046
- 358,619 748,973
26,886,270
322,007,294
636,380
45,003,140
0.01 0.01
10.00
347,445 38,605 11,155
397,205
- 698,440
1,214,920 31,737
3,375,221 3,066
1,730,110 387,399
1,409,129 713,222 272,331 417,699
2,178,883 846,298
-144,000
- 1,216,164 2,212,137
60,000 1,438,283
2,550 8,970
371,336 787,546
2,359,128 449,667
5,228,026 51,000 83,936
- 7,551
117,561 216,394
6,297 254,293 642,162
29,332,661
219,236,258
(171,801,132)
45,003,140
(3.82)(3.82)10.00
II) Transactions during the year with related parties:
Enterprises over which KMP or their relatives are able to
exercise significant influence or control.
Nature of TransactionsS.No.Key
Management Personnel
Others Total
1
2
3
Rent Paid(Prev. Yr.)Interest Received(Prev. Yr.)Remuneration(Prev. Yr.)
144,000144,000
----
144,000144,000
--
600,0005,700,000
----
423,500423,500
288,000288,000
--
1,023,5006,123,500
51
Annual Report 2012-13
PARTICULARS 31.03.2013(Amount in Rs.)
31.03.2012
stNotes on Financial Statements for the year ended 31 March, 2013
NOTE NO. 27VALUE OF IMPORTS CALCULATED ON C.I.F. BASISRaw MaterialComponents and Spare PartsCapital GoodsTOTAL
NOTE NO. 28EXPENDITURE IN FOREIGN CURRENCYForeign Travelling Expenses Interest on FCNRB LoansGDR Issue/Maintenance ExpTOTAL
NOTE NO. 29CONSUMPTION OF IMPORTED AND INDIGENOUS RAW MATERIALS, SPARE PARTS & COMPONENTSIndigenous% of Total ConsumptionImported % of Total ConsumptionTOTAL
NOTE NO. 30EARNING IN FOREIGN EXCHANGEExport of Goods- F.O.B. BasisInterest and DividendTOTAL
9,148,614 1,922,661
406,874 11,478,149
- 14,002,304
- 14,002,304
2,448,011,688 99.55
11,071,275 0.45
2,459,082,963
165,976,190 141,021,393 306,997,583
117,312,867 3,412,578
459,072,180 579,797,625
4,270,393 15,499,873
176,450 19,946,716
1,376,509,584 97.33
37,705,426 2.67
1,414,215,010
78,935,785 1,544,661
80,480,446
NOTE NO. 31
RELATED PARTY DISCLOSURES
As per Accounting Standard 18, the disclosures of transactions with the related parties are given below:
I List of related parties where control exists and related parties with whom transactions have taken place:
Relationship
Key Management Personnel
Key Management Personnel
Key Management Personnel
Key Management Personnel
Key Management Personnel
Key Management Personnel
Relative of KMP
Enterprises over which KMP or
their relatives are able to
exercise significant influence or
control}
S.No. Name of the Related Party
1 Jindal Cycles Private Limited
2 Jindal Fine Industries
3 Leader Cycles Ltd.*
4 Jindal Infomedia Pvt. Ltd.*
5 Jindal Holdings & Investment Ltd.*
6 Mr. Sandeep Jindal
7 Mr. Yash Paul Jindal
8 Mr. Ramesh Jindal
9 Mr. Rajinder Jindal
10 Mr. Aman Jindal
11 Mr. Sahil Jindal
12 Mrs. Manu Jindal
448,000 1,632,000
16,657,403 18,737,403
52
Jindal Cotex Limited
- not later than one year-later than one year and not later than five years-later than five years
Current Year Previous Year
NOTE NO. 32The Company has taken Godown on Lease from M/s Jindal Cycles Pvt. Ltd. The company recognises the expense on due basis.The classification of Future Lease obligations towards Lease Rentals is as follows:-
120,000 320,000 282,500 722,500
The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market.
The above information is certified by the actuary.
The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of Plan assets held, assessed risks, historical results of return on plan assets and the Company’s policy for plan assets management.
Actuarial assumptions
2012-13 2011-12
Mortality Table (LIC) 1994-96 1994-96
(Ultimate) (Ultimate)
Discount rate (per annum) 8%
Rate of escalation in salary (per annum) 7%
NOTE NO. 33Gratuity
(Unfunded)
8%
7%
Revenue:
External (Net of Excise)
Inter-segment
Total Revenue
Result:
Segment Result
Unallocated Expenditure
Profit before Tax
Provision for Tax/Adjustment of tax for Earlier Years
Profit After Tax
2012-13
5144766358
-
5144766358
(35350284)
2011-12
3039798285
-
3039798285
(180194697)
2012-13
4,459,406
-
4,459,406
(2,657,490)
2012-13
1420009017
-
1420009017
38644154
2011-12
5,560,312
-
5,560,312
(3,640,248)
2011-12
1430786366
-
1430786366
20205230
2012-13
6569234781
-
6569234781
636380
-
636380
-
636380
2011-12
4476144963
-
4476144963
163629714
5700000
169329714
2471418
171801132
NOTE NO. 34
Segment information for the year ended 31st March, 2013
(a) Information about Primary Business Segments
TEXTILE WIND MILL IRON TOTAL
Segment Assets
Segment Liabilities
Capital Expenditure
Depreciation
2012-13
6480397520
5192803234
260021323
167643107
2011-12
5632927350
2866013127
1191686153
121927215
2012-13
48,381,069
23,921,399
3,471,496
2011-12
51,852,565
29,121,643
-----
3,471,496
2012-13
9647136896
6598124432
260021323
171174584
2011-12
7283115867
4458757332
1191460370
125403348
TEXTILE WIND MILL TOTAL
(b) Information about Secondary Geographical SegmentsRevenue by geographical market
External
Prev Year
Inter-segment
Total
Total Prev Year
India
6406464905
4396217043
-
6406464905
4396217043
Outside India
164866274
80143641
-
164866274
80143641
Total
6571331179
4476360684
-
6571331179
4476360684
2012-13
3118358308
1381399798
-
59980
2011-12
1598335952
1563622562
225783
4637
IRON
stNotes on Financial Statements for the year ended 31 March, 2013
53
Annual Report 2012-13
(c) Notes:
(i) Management has identified three reportable business segments, namely:
- Textile: – Production of Acrylic Yarn, Polyester Yarn, Poly/cotton Blended Yarn, Cotton Yarn and other Blended Yarns.
- Energy Generation: - Generation of Energy from Wind Mill.
- Iron: - Trading of Iron
Segments have been identified and reported taking into account the nature of products.
(ii) The segment in the geographical segments considered for the disclosure are as follows:-
- India: comprising of sales to customers located within India and earnings in India
- Outside India : comprising of sales to customers other than located in India.
(iii) Segment Revenue, Results, Assets and Liabilities include the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis.
NOTE NO. 35In the opinion of the Board, current assets, loans and advances have a value in the ordinary course of business at least equal to that stated in the balance sheet and adequate provisions have been made for all known liabilities and depreciation in the books of accounts.NOTE NO. 36Previous year's figures have been recast/ regrouped wherever necessary to make these comparable with current year's figures.NOTE NO. 37All figures have been rounded off to nearest rupees.NOTE NO. 38Figures in brackets indicate deductions.
NOTE NO. 39CONTINGENT LIABILITIES AND COMMITMENTS(To the extent not provided for)a Contingent Liabilitiesi) Claims against company not Acknowledged as Debtii) Other Money for which the Company is Contingently liable iii) Duty saved upon procurement of machinery pending fulfillment of export obligation
iv) Vat Exemption which is available on the basis of eligibility certificate issued by District Industries Centre, Ludhiana but the same is disputed by concerned sales tax authorities.
v) Demand raised by sales tax authorities and the same is disputed by the company.
vi) Corporate Guarantee given to Banks for grant of Term Loan and CC Limits to Group Companies
v) Letter of credit established for purchase of capital goods/Supplies and due in next year
vi) Bank Guarantee Executed in favor of DGFT Ludhiana/Custom Authorities for fulfillment of export obligation.
b Commitmentsi) Estimated amount of contract remaining to be executed on capital account (net of
advances)
TOTAL
31.03.2013
- -
277,715,041
4,807,000,000
45,056,000
1,106,345,242
6,236,116,283
31.03.2012
- -
319,075,061
41,729,000
13,414,000
4,430,000,000
-
36,608,000
1,320,067,607
6,160,893,668
NOTE NO. 40
The Institute of Chartered Accountants of India has issued an Accounting Standard – 28 on Impairment of Assets, which is mandatory for the accounting periods commencing on or after 1st April, 2004. In accordance with the said standards, the company has assessed as on date of applicability of the aforesaid standard and as well as on balance sheet date, whether there are any indications with regard to the impairment of any of the assets. Based on such assessment, it has been ascertained that no potential loss is present and therefore, formal estimate of recoverable amount has not been made. Accordingly no impairment loss has been provided in the books of accounts.
stNotes on Financial Statements for the year ended 31 March, 2013
Significant Accounting Policies and Notes on Accounts 1 to 40
For and on behalf of the Board of Directors
(RAJINDER JINDAL)(SANDEEP JINDAL)
Chairman & Managing Director Director
PLACE : LUDHIANA DATE : 30.05.2013
(ANOOP KUMAR)
A.G.M.-Accounts (LALIT VIG)
Manager-Accounts
(ANIL MALHAN)Company Secretary
(RAJESH SHARMA)
Director
As per our report of even date attached For Aggarwal Garg & Co.
Chartered AccountantsFirm Regn. No. : 004745N
(PAWAN KUMAR GARG) PARTNER
M.No. 083139
54
Jindal Cotex Limited
Statement pursuant to section 212 of the Companies Act, 1956, relating to subsidiary companies
1.
2.
3.
4.
5.
Name of the Subsidiary Companies
Financial Year of the Subsidiary Companies ended onNumber of shares held & Face Value
Extent of Holding
Net Aggregate amount of Profit Less Losses of the subsidiary companies so far as it concerns the members of Jindal Cotex Limited
a) Not dealt with in the Accounts of Jindal Cotex Limited.
i) For the subsidiary’s financial year above referred
ii) For previous financial years of subsidiary since it became subsidiary of Jindal Cotex Limited
b) Dealt with the accounts of Jindal Cotex Limited
i) For the subsidiary’s financial year above referred
ii) For previous financial years of subsidiary since it became subsidiary of Jindal Cotex Limited
Jindal Medicot Limited
st31 March, 201338,00,000 equity sharesof Rs. 10/-each
(100%)
--
--
Jindal Specialty Textiles Limited
49,50,000 equity shares of Rs. 10/-each
(100%)
st31 March, 2013
--
--
Himachal Textile Park Limited
(90.79%)
3,80,000equity shares of Rs. 10/-each
st31 March, 2013
--
--
Jindal International FZE
(100%)
One equity share of AED 10,00,000/-
st31 March, 2013
--
--
Jindal Infrabiz Limited
50,000equity shares of Rs. 10/-each
(100%)
st31 March, 2013
--
--
Jindal Metalex Limited
(100%)
50,000equity shares of Rs. 10/-each
st31 March, 2013
(458,64,826.00) (36,254,963.00) -- 38,644,154.00----
--
--
Financial information of subsidiary companies (Rs. in Lacs)
Sr. No.
Particulars
1.
2.
3.
4.
5.
Capital
Reserves
Total Assets
Total Liabilities
Details of Investments
380.00
1997.63
15857.09
15857.09
0.00
495.00
4250.66
20573.08
20573.08
0.00
38.00
0.00
4613.59
4613.59
0.03
5.00
0.00
7.30
7.30
0.00
5.00
0.00
10.61
10.61
0.00
Jindal Medicot Limited
Jindal Specialty Textiles Limited
Himachal Textile Park
Limited
Jindal Infrabiz Limited
Jindal Metalex Limited
126.28
630.40
31183.58
31183.58
0.00
Jindal International
FZE
(Sandeep Jindal)Chairman & Managing Director
(Yash Paul Jindal)Director
(Anil Malhan)Company Secretary
(Except in case of investment in subsidiaries)
Turnover
Profit/(Loss) before taxation
Provision for Taxation
Profit/(Loss) after taxation
Proposed Dividend
6.
7.
8.
9.
10.
13048.23
(458.65)
0.00
(458.65)
0.00
10093.72
(362.55)
0.00
(362.55)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
14200.09
386.44
0.00
386.44
0.00
(Anoop Kumar)A.G.M.-Accounts
(189,10,080.00) (69,25,253.00) -- 20,205,230.00----
(Rajesh Sharma)Director
PLACE : LUDHIANA DATE : 30.05.2013
if undelivered, please return to :
Bigshare Services Private Limited
(Unit : Jindal Cotex Limited)
E/2, Ansa Industrial Estate,
Saki Vihar Road, Sakinaka,
Andheri (East), Mumbai - 400 072.
Tel No. : +91 22 2847 0652
Printed by : Cosmo Printers, Ldh.
JINDAL COTEX LIMITEDR6Od. Ofi@ : vP.O. JUGIANA, G.r. RoAo,TEL. : 91'161 2511S40,2511341,2511342,E-MAIL i inioojindalcotox.Fm WEBSITE I
660s5s5, 93767 6{111 FAX : S1-161-2511443
FORM A
JINDAL COTEX LMITED
Annud financial shremeils tor
Audir CommincaChaimar
'JINDALGFOUP' AI]OUSE OF AUALM
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