Annual Report 2012-13Financial Analysis (Rs. in Lacs) Particulars Sales Other Income Total Income...

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.

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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: [email protected]

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: [email protected] 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


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


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


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


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


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


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






Director

Director



* 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


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


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


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




Sh. Madan Lal Arora

Sh. Vijesh Gupta*

Sh. Vipan Kumar Mittal**

Sh. Sandeep Jindal


Sh. Naresh Chand Bansal#

Executive 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


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


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: [email protected] 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 :[email protected]

o. Compliance Officer: Mr. Anil Kumar, Company Secretary Email ID: [email protected]

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


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


13


(P. K. Garg) Partner

M. No. 083139FRN : 004745N

Dated: 30.05.2013Place: Ludhiana

14


(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.



M. No. 083139FRN : 004745N



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


17

PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31st MARCH, 2013


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)






(ANOOP KUMAR)


Manager-Accounts



(RAJESH SHARMA)

Director




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






(ANOOP KUMAR)


Manager-Accounts


(RAJESH SHARMA)

Director




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


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



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



ISSUED CAPITAL









SUBSCRIBED AND PAID UP CAPITAL









21



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


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

- -


31.03.2012

**Maturity Profile of Deposits are as set out below:

400110006015000

1-2 years

53,167,00036095000

2-3 years


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)


23


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


31.03.2012


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


NOTE NO. 6

TRADE PAYABLES

Due to Micro, Small and Medium Enterprises

Due to Others


31.03.2012


-

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


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


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


WDV as on 31.03.2013

Sr. No. Addition

during the year


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


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

- - - -


31.03.2012


27


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


31.03.2012


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


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


31.03.2012


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


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


31.03.2012


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


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


31.03.2012


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


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


31.03.2012


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






Relative of KMP

Enterprises over which KMP or

their relatives are able to

execise significant influence or

control}

32


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.


(Amount in Rs.)

8%

7%

33


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


(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.)


34


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.






(ANOOP KUMAR)


Manager-Accounts



(RAJESH SHARMA)

Director




M.No. 083139

35


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



M. No. 083139FRN : 004745N


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


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)


31.03.2012

12

34.14.24.3

5678

9

10

1112

13141516


(RAJINDER JINDAL)(SANDEEP JINDAL)



(ANOOP KUMAR)


Manager-Accounts



(RAJESH SHARMA)

Director




M.No. 083139

CONSOLIDATED BALANCE SHEET AS AT 31st MARCH, 2013

37


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.


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





(ANOOP KUMAR)


Manager-Accounts



(RAJESH SHARMA)

Director




M.No. 083139

38


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


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





(ANOOP KUMAR)


Manager-Accounts


(RAJESH SHARMA)

Director




M.No. 083139

39


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.


(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



41



31.03.2012


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









ISSUED CAPITAL









SUBSCRIBED AND PAID UP CAPITAL









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



31.03.2012


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:


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


43



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



31.03.2012


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



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


Addition during the

year

Other Adjustments


year

Value at the end


WDV as on 31.03.2013

Sr. No. Addition

during the year


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


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

-


31.03.2012


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


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

-

-

-

-


31.03.2012


48


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 )


31.03.2012


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


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


31.03.2012


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


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


31.03.2012


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



31.03.2012


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







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


- 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


(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


53


(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.







(ANOOP KUMAR)


Manager-Accounts


(RAJESH SHARMA)

Director




M.No. 083139

54


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


st31 March, 201338,00,000 equity sharesof Rs. 10/-each

(100%)

--

--


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

--

--


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



Himachal Textile Park

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


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.

Annual Report 2012-13Financial Analysis (Rs. in Lacs) Particulars Sales Other Income Total Income...

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