Jindal Photo Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2018
Auditor and Management Disclosures and Notes for the quarterly results dated 31 Dec 2018
1. The above unaudited financial results have been reviewed by the audit committee and approved by the Board of Directors in their respective meetings held on 2nd February, 2019 and a limited review of the same has been carried out by the statutory auditors of the Company.
2.(a) In terms of Judgement of Hon’ble Delhi High Court dated 9th March, 2017, the Ministry of Coal vide its Circular dated 01.02.2018 asked allocattees to file claims with regard to Compensation of Land and Mine. Accordingly Mandakini Coal Company Limited (MCCL), Joint Venture of the Company has claimed compensation of Rs. 240.49 crores, which included compensation towards leasehold land and other expenses which are to be received by MCCL from subsequent buyer/allottee of the Coal Mine after the reauction/reallotment of Coal Mine. MCCL shall also get simple interest @ 12% from the dates of payment towards purchase of land. The amount shall be paid after deduction of any loan of Banks/Financial Institution which will be directly paid to such creditors.
(b) On the basis of book value per share of MCCL as per latest audited balance sheet (including claim recoverable as per (a) above), the company has made provision of Rs 16.51 crores for diminution in value of investments upto 31.3.2018 against investment of Rs. 39.30 crore in shares of MCCL. In the opinion of the management, the provision is adequate.
(c) In the earlier years the Company has given interest bearing loan of Rs 5.23 crores (excluding interest receivable of Rs. 0.22 crores up to 31.03.2015) to Mandakini Coal Company Limited (MCCL), a joint venture of the company. MCCL, due to its worsen financial conditions, has approached the company to waive the interest on loan. The Board has agreed to waive off the interest for the financial year 2018-19 also. Hence no provision for interest has been made for financial years 2015-16, 2016-17, 2017-18 and for the current quarter and nine months period ended 31.12.2018. In the opinion of the Board, the amount due is good and recoverable.
(d) Company had given Corporate Guarantee to IFCI in respect of loan given by IFCI to Mandakini Coal Company Limited (MCCL), a joint venture of the company. Up to 31.12.2018, the company has made payment of Rs 51.32 crores to IFCI to discharge its obligation under the deed of guarantee. The said amount has been shown as recoverable from MCCL in these accounts and no interest has been charged thereon. In the opinion of the Board, the amount is good and recoverable and in view thereof no provision has been created.
3. On the basis of valuation of shares of Jindal India Thermal Power Limited by SEBI Registered Category 1 Merchant Bankers, the company has up to 31.03.2018 made provision of Rs 1.10 crores for diminution in value of investments in Equity Shares of Jindal India Thermal Power Limited out of total investments of Rs 1.87 crores. In the opinion of the management, the provision is adequate.
4. Exceptional items for the year ended 31st March 2018 represents provision for diminution in value of investments of Rs. 171.15 crores.
5. Deferred tax assets has not been recognised in the books due to uncertainity of its realisation in near future.
6. Company is dealing in only one segment that is Investment business of shares and securities in group Company only, hence segment details as required by SEBI Circular bearing number CIR/CFD/FAC/62/2016 dated 5th July, 2016 is not applicable to the Company.
7. In earlier years, Jindal Photo Limited (JPL) has invested in Equity Shares of Rs. 153.54 Crores in Jindal India Powertech Limited (JIPL) which was holding company of Jindal India Thermal Power Limited (JITPL) and also invested in Equity Shares of Rs. 1.87 crore in JITPL. JITPL operates thermal power plant (1200 MW) located in Angul Orissa. In June 2017, the lenders of JITPL have invoked the pledged equity shares to the extent of 51 % holding, consequent thereof, JITPL ceased to be a subsidiary of JIPL. Lenders have further invoked 15% pledged equity shares in the month of February, 2018. In view of this development and on the basis of valuation of shares JIPL and JITPL, JPL has upto 31.12.2018 made provision of entire amount of investments in JIPL and provision of Rs 1.10 crores against investments in JITPL.
8. Company is a Core Investment Company (CIC), a Non-Banking financial Company (NBFC). In view of MCA Notification on Accounting Standards dated 16th February, 2015 and MCA notification dated 30th March, 2016, that adoption of Indian Accounting Standards are applicable on us with effect from 1st April, 2019.
9. Corresponding figures of previous period (s) have been regrouped/rearranged/recast wherever considered necessary.